City of Laredo

City Council Annual Budget Workshop

For Proposed Fiscal Year 2000-2001 Budget

M2000-W-004

City Council Chambers

1110 Houston Street

Laredo, Texas 78040

Thursday, August 10, 2000

Friday, August 11, 2000

Saturday August 12, 2000

5:30 p.m.

 

Call to Order

 

            With a quorum present Mayor Elizabeth G.  Flores called the meeting to order.

 

Roll Call

 

            Elizabeth G.  Flores,                                         Mayor

            Alfredo Agredano,                                            Councilmember, District I

            Louis H.  Bruni,                                             Councilmember, District II

            John C.  Galo,                                                    Councilmember, District III

            Johnny Amaya,                                                Councilmember, District IV

            Eliseo Valdez, Jr.,                                           Councilmember, District V

            Joe A.  Guerra,                                     Mayor Pro Tempore, District VI

            Jose A.  Valdez, Jr.                                            Councilmember, District VII

            Juan Ramirez,                                                           Councilmember,  District VIII

            Gustavo Guevara, Jr.,                                      City Secretary

            Larry Dovalina,                                              Acting City Manager

            Cynthia Collazo,                                                Acting City Manager

            Jerry Cain,                                                    City Attorney

 

I.            Introduction and Welcoming Remarks

 

            Larry Dovalina, Acting City Manager

            Cynthia Collazo, Acting City Manager

 

Larry Dovalina, Acting City Manager, opened the workshop with the following remarks:

 

“The 2000-2001 has been prepared with the intentions to meet the City’s needs that have been paralleled with the City Council’s vision.  The City’s growth rate over the last five years has presented challenges to our capital improvement program.  These challenges have been met by a positive and dedicated staff that is the strength of our organization.

 

Our capital improvement program (street improvements, drainage, quality of life projects) has required that we consider innovative financing methods that accelerate funding rather than the “pay as you go” traditional method.

 

Another challenging area has been the growth experienced by public safety, which is the last three years is 34% or $10 million in operational expenses. We should be proud of our police and fire departments.  The Council’s aggressive funding leveraged by state and federal grants has ranked them among the top compared to cities our size.  The challenge has been to contain these services in balance to our general revenue. This proposed budget provides that balance.”

 

Cynthia Collazo, Acting City Manager, commented on the Strategic Planning Conference held on August 11, 2000.  The following areas were addressed:

 

Transportation

 

1 year                 Ensure Bridge IV is constructed and operational.

                                    World Trade Bridge completed and operational April 15, 2000.

 

3 year                 Identify a site for south Laredo Bridge.

 

Potential tract annexed.  Coordination with TxDot will continue in the environmental study and Nuevo Laredo.  Identified in TIP for 2004-2005.

 

5 year                 All City vehicles to operate on CNG.

 

                                    Preparation of CNG fueling station at DPW service center complete.

 

Public Safety

 

1 year                 Have Fire Station # 12 operational.

 

                                    Design for construction of Fire Station # 12 underway.

 

3 year                 Each district should have at least one substation.

 

One police substation in each district is in place and contracts have been awarded for stations in District I, V, and VII.

 

3 year                 To have Regional Fire Training Facility Operational.

 

                                    Site acquisition completed.  Design is 95% complete.

 

5 year                 Relocate Railroad Bridge from Downtown Area.

 

Rail mobility comprehensive plan currently under study and expected to be completed in September 2000.

 

3 year                 Each district should have at least one substation.

 

 

 

 

Economic Development

 

1 year            Work closely with L. D. F.  in the development of policies that will attract jobs to Laredo.

 

                        The implementation of a tax abatement program has been adopted.  Two businesses have been assisted:  M. S. Carriers and Laredo Candle Company.

 

3 year            Reconsider the economic sales tax and emulate some of the successful projects and process what other cities have done to attract jobs to our area.

 

                        The economic sales tax referendum is currently being considered.

 

5 year            To increase the Ad Valorem Tax Base by increasing and retaining the number of businesses with environmental friendly policies and better paying jobs.

 

                        Future plans for the development of an improvement tax district and downtown improvement district.

 

Financial

 

1 year            Conduct Franchise Audits.

 

                        Contracted with Navigant Consultant to conduct audit of Entex.

 

3 year            Conduct performance audits on all City Departments.

 

                        Performance audits of three major departmental functions were undertaken this fiscal year.

 

3 year            Earmark funding to continue to employ the police officers that were previously paid through grants.

 

                        General fund reserves have been earmarked to maintain level of service.

 

5 year            Economic development sales tax.

 

                        Proposed was a ¼ of a cent sales tax to finance construction of a Laredo Entertainment Center.

 

Organizational Development

 

1 year            Good pay, benefits, employee development set aside money for incentive programs to be competitive with other cities our size.

 

 

                        The current budget included a 1.6% cost of living adjustment and a 2, 3, 4 % merit increase for all employees, excluding the fire and police departments.

 

Compensation comparison analysis conduced.

 

Medical Benefit Rate Study accomplished.

 

Continuous employee training offered.

 

1 year            Create incentive program and set aside money to award employees of performance measures.

 

                        1999-2000 City Employee Pay Plan was adopted.

 

3 year            Establish training/safety programs and reward those who excel.

 

                        Department director, mid-management, and first line supervisor training programs continued.

 

                        Program has budgeted a staff trainer for FY 2001.

 

                        Safety incentive program currently under design.

 

                        Driver safety program instructor trained, materials purchased and program under design.

 

5 year            Have the very best trained, well-paid employees in comparison with other cities our size.

 

                        Training and safety incentive program enhanced.

 

                        Fourth class of Leadership program initiated.

 

                        Classification and compensation comparison study conducted.

 

Customer Service

 

1 year            Monitor customer service representative and software data results.

 

                        The program continues to be implemented with the completion of the I-Net providing remote access to the customer service software.

 

Quality of Life

 

1 year            Increased park maintenance personnel by one office position and 6 groundskeeper positions.

 

                        Seasonal recreational positions increased by three playground assistants, one playground leader and thirteen lifeguards.

 

                        Bruni Plaza established and staffed accordingly.

 

                        Library operation hours extended six hours weekly by providing overtime funds.

 

5 year            Civic Center/ Multi Purpose Use Center.

                       

                        $3.8 million in reserve for Civic Center/Multi Purpose Laredo Entertainment Center proposal.

 

Growth Management

 

1 year            Review and update of land use plan.

 

                        Digitizing of zoning map 98% - complete.

 

                        Conducting current land use survey – 80% complete.

 

                        Data collection and forecast study completed.

 

                        Comprehensive mobility plan 50% completed.

 

                        A corridor intersection analysis 50% completed.

 

                        Parks Master Plan – Completed.

 

                        Update of Comprehensive plan initiated.

 

                        Laredo Metropolitan Transportation Plan for 2000 completed.

 

5 year            Review fees imposed for development and evaluate whether they’re promoting or stiffening growth.

 

                        Impact Fee Advisory Committee recently extended.

 

Community Advocacy

 

1 year            Get involved (take over) business council.

 

                        The Mayor’s office has taken over the business council and will initiate meetings in September.

 

3 year            Continue to work with business and community member as well as our legislature on issue affecting Laredo.

 

                        The City is also actively participating in:

 

 

 

                        Border Trade Alliance

                        Border Infrastructure Coalition

                        Texas Municipal League

                        National League of Cities

                        U. S. Conference of Mayors

                        Co-Rio

                        Tex-21

                        North American International Trade Corridor Partnership.

 

                        The City continues to have legislative consultants in Austin and Washington.

 

Water

 

1 year            Identify a secondary source of water.

 

                        Staff have identified three possible sources.

 

                        Staff is negotiating with firms for the delivery of five to twenty million gallons groundwater per day.

 

3 year            Identify and secure funding for continued expansion of water and wastewater infrastructure.

 

                        Staff is working with the community on the development of impact fees.

 

                        Project has been placed on hold in order to incorporate the groundwater project.

 

5 year            Identify and fund an off river reservoir for storage and recreation.

 

                        Staff has made preliminary inquires regarding possible funding sources.

 

II.            Financing Alternative for Proposed Capital Projects

 

            Noe Hinojosa – Estrada Hinojosa

 

Noe Hinojosa, from Estrada-Hinojosa Investment Bankers, gave a presentation on a plan of finance for proposed 2001 bond issues.

 

A detailed Plan of Finance Proposed 2001 Bond Issues may be viewed at the City Secretary’s Office.

 

 

 

 

 

 

III.       City Manager’s Recommended Budge for FY2000-2001

 

            A.            Ad-Valorem Tax Rate

                        Phyllis Colon, Tax Assessor-Collector

 

Phyllis Colon, Tax Assessor-Collector, gave a presentation before the Council.  The following information was submitted:

 

                        Year 2000 Appraisal Roll Information:

 

                        Total Appraised Value   $            5,587,394,005

                        Total Assessed Value                        $            5,445,459,623

                        Total Taxable Value              $            4,700,652,717

                        Number of Accounts                                        63,148

                        2000 Effective tax rate      $                  0.559286

 

            B.            Personnel Issues

                        Dan Migura, Administrative Services Director

 

                        1.            Pay Plan

                        2.            Health and Benefits

 

Dan Miguara, Administrative Services Director, gave a presentation before the Council.  He submitted the following information:

 

City of Laredo

Fiscal Year 2000/2001 Budget Proposal

 

Pay Plan:

 

1.  2.2% Cost of Living Adjustment on October 1, 2000.

 

2.  Continue Prior year Performance Based Pay Plan.

 

Health Benefits:

 

1.  Propose a 10% Rate Adjustment for Health Plan Contributions.

 

2.  Consider health Benefit Plan modifications to encourage employees to make

     good health care decisions.

 

3.  Reduce the health Insurance Contributions by 15%.

 

Health Benefits

            Fund Description                  Projected Budget     Rec.  Revision   Adjustment     Percentage

Dependent Health Ins. De.

2,402,448

2,032,840.70

369,607

-15.38%

Ins.  Premiums – Cobra

6,284

5,317.40

967

-15.38%

Med. Contributions Retire

341,609

289,053.60

52,555

-15.38%

Dep.  Dental Ins. Deduct.

67,373

67,373

0

0.00%

Health Ins.  Contribution

5,549,148

4,725,468.00

823,680

-14.84%

Retirees – City

318,973

269,900.04

49,073

-15.38%

Dental Insurance

120,503

120,503

0

0.00%

 

8,806,338

7,510,455.74

1,295,882

-14.72%

 

            C.            Proposed General Fund Revenues

                        Beto Ramirez, Budget Director

 

                        Heberto Ramirez, Budget Director, gave the presentation before the Council.

 

                        Motion to accept the General Fund Proposed Amendment.

 

                        Moved:  Mayor Pro Tempore Guerra

                        Second:  Cm.  Agredano

                        For:     8                                              Against:  0                                  Abstain:  0

 

                                                                                                Revenues                     Expenditures

                        Increase Property Tax Revenues                           58,909

                        Increase Riverdrive Mall Lease Rents           6,107

                        Increase Municipal Court Revenues                           35,600

                        Increase Sales Tax Revenues                                       71,319

                        Increase Electric Franchise Revenues                           31,547

                        Reduce Airport Crash Crew Revenues                  (7,539)

 

                        Transfer-in Fleet Management Fund                    175,144

 

                        Reduce Reserve Appropriation                                                   (100,629)

                        Reduce Public Works Administration Exp                                              (1,184)

                        Increase Police Salaries (Survey)                                                             379,471

                        Increase Recreation Center Salaries                                                      80,813

 

                                                                                                    371,087                          358,471

 

                        Surplus (Deficit)                                                      12,616

                        Unfunded Requests

                        Increase WCAD Expenditure                                                                      71,319

 

Motion to increase the employees Health Plan Contributions by 10% for dependent coverage from a projected health benefits budget of $ 8,806,338 to $ 7,510,455.74.

 

Moved:  Cm.  Galo

Second:  Cm.  Amaya

For:     8                                    Against:  0                                                Abstain:  0

 

 

 

 

 

 

            D.            Proposed FY2000-04 – Capital Improvement Program

                        Keith Selman, Planning Director

 

                        1.            Video of Completed Projects

                        2.            Proposed New Projects

 

Keith Selman, Planning Director, went over the 2001-2005 Capital Improvement Program.  A summary of the 2001-2005 Capital Improvement Program may be found at the City Secretary’s Office.

 

            E.            Proposed FY2000-02 Budget – Municipal Court

                        Thomas Ochoa, Municipal Court Clerk

 

                        1.            Municipal Court Operations

                        2.            Proposed Municipal Court Building

 

                        Motion to adjust the Municipal Court Judge’s salary to $72,000 per year.

 

                        Moved:  Cm.  Bruni

                        Second:  Cm.  Agredano

                        For:     8                                  Against:  0                                              Abstain:  0

 

                        Motion to adjourn.

 

                        Moved:  Cm.  Amaya

                        Second:  Cm.  Bruni

                        For:     8                                  Against:  0                                              Abstain:  0

 

Friday, August 11, 2000

 

            F.            Proposed FY 2000-01 Budget – Engineering Services

                        Rogelio Rivera, City Engineer

 

                        1.            Engineering Operation Highlights

                        2.            Status of Construction Projects

                        3.            NPDES Fund

 

Rogelio Rivera, City Engineer, went over the projects completed and the status of pending projects.  He reported a total of 69 project complete in FY2000 with a total cost of $71,666,223 and are working currently on 49 project with a total estimated cost of $47,097,086.65.

 

Motion to increase NPDES Fund Salary line item by $73,352 for two positions which was inadvertently omitted.  Total Budget will increase from $1,535,086 to $1,608,438.

 

Moved:  Cm.  Amaya

Second:  Cm.  Agredano

For:     8                                    Against:  0                                                Abstain:  0

           

            G.            Proposed FY2000-01 Budget- Parks & Rec. Department

 

John Vidaurri, Parks and Recreation Director, made the FY2000-01 budget presentation before the Council.

 

                        1.            Park Issues

                        2.            Recreation Center Programs

                        3.            Cemetery Operations

                        4.            Veteran’s Field

 

            H.            Proposed FY2000-01 Budget – Library Department

                        Janice Weber, Library Director

                        Jose Vela III, Non-Profit and Volunteer Center Coordinator

 

                        Janice Weber, Library Director, gave the presentation before the Council.

 

                        1.            Library Operations

                        2.            Third Party Agencies

 

Motion to adopt the time schedule. (Main Library)

 

                        Moved:  Cm.  Bruni

                        Second:  Cm.  Galo

For:     8                         Against:  0                                              Abstain:  0

 

Main Library Hours of Operation

 

                        Current 70 Hours/ week                                        Proposed 64 hours/week

 

                        Monday Through Thursday                                              Monday

                        9 a.m. to 9 p.m.                                                          9 a.m. to 6 p.m.

                        Friday                                                                          Tuesday through Thursday

                        9 a.m. to 5 p.m.                                                          9 a.m. to 8 p.m.

                        Saturday                                                                      Friday & Saturday

                        10 a.m. to 7 p.m.                                                          9 a.m. to 6 p.m.

                        Sunday 1 p.m. to 6 p.m.                                         Sunday 1 p.m. to 5 p.m.

                       

Jose “Chito” Vela, Non-Profit Center Coordinator, went over the Third Party Funding.

 

Motion to increase the 5% penalty to 10% Third Party funding in General Fund and Hotel/Motel Fund.

 

Moved:  Mayor Pro Tempore Guerra

Second:  Cm.  Amaya

For:     8                                    Against:  0                                                Abstain:  0

 

 

 

 

            I.            Proposed FY 2000-01 Budget – C & VB Department

                        Don Raulie, Convention & Visitors Bureau Director

 

Don Raulie, Covention & Visitors Bureau Director,  made the presentation before the Council.

 

                        1.            Hotel-Motel Fund Revenues

                        2.            Mercado Fund

                        3.            Civic Center Fund

                        4.            Convention & Visitors Bureau Fund

 

            J.            Proposed FY2000-01 Budget – Bridge Department

                        Rafael Garcia, Bridge Director

 

                        Rafael Garcia, Bridge System Director, went over the bridge system budget.

 

                        1.            Bridge Operations

 

Motion to add a Customer Service Center Manager position to the budget and delete 4 cashiers/teller positions.

 

Moved:  C