CITY OF LAREDO

SPECIAL CITY COUNCIL MEETING

A-2007-SC-04

CITY COUNCIL CHAMBERS

1110 HOUSTON STREET

LAREDO, TEXAS 78040

AUGUST 1, 2007

12:15 p.m.

 

 I.         CALL TO ORDER

 

            With a quorum present, Mayor Raul G. Salinas called the meeting to order.

 

II.                PLEDGE OF ALLEGIANCE

 

            Mayor Raul G. Salinas led in the Pledge of Allegiance.

 

III.             ROLL CALL

 

            In attendance:

 

            Raul G.  Salinas,                                                         Mayor

            Mike Garza,                                                                Council Member, District I

            Hector Garcia,                                                             Council Member, District II

            Michael Landeck,                                                       Council Member, District III

            Johnny Amaya,                                                           Council Member, District IV

            Johnny Rendon,                                                          Council Member, District V

            Gene Belmares,                                                           Mayor Pro Tem, District VI

            Juan Chavez                                                                Council Member, District VII

            Juan Ramirez,                                                              Council Member, District VIII

            Gustavo Guevara, Jr.,                                                 City Secretary

            Carlos Villarreal,                                                         City Manager

            Cynthia Collazo,                                                         Deputy City Manager

            Horacio De Leon,                                                       Assistant City Manager

            Jesus Olivares,                                                             Assistant City Manager

            Anthony McGettrick,                                                 Acting City Attorney

 

     

IV.             PUBLIC HEARING

 

1.                  Public hearing and introductory ordinance amending Section 1 of Ordinance 2005-O-209 of the City of Laredo and authorizing an increase in the bridge toll rate schedule for southbound non-commercial traffic utilizing the Automatic Vehicle Identification System (A.V.I.) and southbound non-commercial traffic utilizing the Colombia - Solidarity Bridge and southbound commercial traffic as further described in Exhibit “A” and hereby repealing all conflicting sections in all ordinances currently in effect. 

 

                        Motion to open the public hearing.

 

                        Moved:  Mayor Pro Tempore Belmares

                        Second:  Cm. Amaya

                        For:  8                                                  Against:  0                               Abstain:  0 

                       

                        Luis Moreno, President of the Nuevo Laredo Transportation Association, stated

                        they were not against the increase, but the 36.5% increase seems to be little                                     excessive.  He asked Council to reconsider and to stay competitive with other                                ports of entry.

 

                        Motion to close the public hearing and introduce.

 

                        Moved:  Cm. Garcia

                        Second:  Mayor Pro Tempore Belmares

                        For:  8                                                  Against:  0                               Abstain:  0

           

                        Ordinance Introduction:  City Council 

 

V.                RESOLUTION

 

2.                  2007-R-056     Authorizing the release of Lots 1, 2, & 3, Block 2, Laredo International Airport Passenger Terminal Subdivision, from the Declaration of Covenants, Conditions and Restrictions, dated February 28, 2006, and recorded in Volume 2044, pp 223-244, official property records of Webb County, Texas; and directing the City Manager to execute the amendment, in the form attached as Exhibit I, and have it filed of record in official property records of Webb County, Texas. 

 

                        Jim Earhart spoke against granting approval of this resolution.

 

                        Danny Gunn spoke against covering the green space at the lake to save this small

                        piece of wetland.

 

                        Cordelia Casso Flores requested that Council take note of the request of the                                    citizens to preserve the wetlands.

 

                        Remy Salinas spoke against approval of the resolution.

 

                        Motion to approve Resolution 2007-R-056.

                       

                        Moved:  Cm. Rendon

                        Second:  Cm. Chavez

                        For:  8                                      Against:  0                                           Abstain:  0

 

VI.             STAFF REPORTS

 

3.                  Submission of the proposed 2008 – 2012 Capital Improvement Program (CIP) as per Article VI, Section 6.05, which states that “the City Manager shall prepare and submit a five (5) year capital program at least sixty (60) days before the end of the fiscal year.”

 

                        Jessica Hein, Director of Telecommunications and Administrative Services,

                        presented the Mayor and City Council a copy of the proposed 2008-2012 Capital

                        Improvement Program.

 

4.                  Submission of the proposed Fiscal Year 2008 Annual Budget as per Article VI, Section 6.02, Submission of Budget which states that “At least sixty (60) days before the end of the fiscal year, the City Manager shall present to the Council a budget for the ensuing fiscal year with an accompanying budget message.”

 

                        Martin Aleman, Budget Director, presented the Mayor and City Council an

                        electronic copy in a CD of the proposed Fiscal Year 2008 Annual Budget.

 

                        Carlos Villarreal, City Manager, summarized the following Fiscal Year 2008

                        Annual Budget message that was given to the Mayor and City Council:

 

 

August 1, 2007

 

 

Honorable Mayor and Members of the Laredo City Council:

In accordance with the City of Laredo Charter Section 6.02, I am pleased to present the fiscal year 2008 City of Laredo Annual Operating Budget for the period of October 1, 2007 through September 30, 2008.  The City’s budget encompasses operating expenditures and transfers totaling $404,059,036, a $10.9 million or 2.8% increase from 2007.  The total net operating budget, excluding operating transfers, is $324,589,860. The total proposed ending balance for 2008 is $102,197,987, representing an increase of $2.7 million or 2.7% from the 2007 ending fund balance and 31.4% of the total net operating budget. This financial statement represents the hard work and commitment of City staff to develop a budget that addresses the challenges associated with the growing needs of our community.  The budget reflects my commitment to provide a higher level of service, with an emphasis in addressing those basic services related to street improvements, water, sewer and public safety.

Tax Rate

 

§                     The proposed tax rate for 2008 is projected to remain at the same rate as 2007 at $0.63700 per $100 assessed valuation.  The 2008 property values are projected to increase by 12% over the estimated 2007 amended valuations.  The total taxable value of $9.4 billion will generate a proposed levy of $59.6 million, representing an increase of $6.1 million or 11.5% over the 2007 adjusted levy.  The proposed levy excludes an estimated amount of $251,156 for the tax freeze approved by Council for taxpayers 65 years of age and older. 

 

§                     The proposed maintenance and operations tax rate allocation of .513745 will generate a total revenue of $46.8 million for General Fund for 2008, signifying a $5 million or 12% increase over the 2007 estimate. 

 

§                     The proposed debt service tax rate allocation of 0.123255 will generate a total revenue of $11.2 million for 2008, a $1.08 million or 10.6% increase over 2007 estimate with a proposed 97.25% collection rate.  Total collections for 2007 are estimated at $51.9 million, representing 97.08% of the adjusted levy.

 

Staffing and Benefits

 

A total of 2,473 full time equivalent positions are included in the 2008 budget at an estimated cost of $138,985,929.  Incorporated within this budget is a 2% cost of living adjustment to become effective April 6, 2008 at a cost of $662,189 and a 3% merit increase for all non-civil service employees at an estimated cost of $959,973.    A $5 increase for health and benefits is proposed for each of the following items:  (1) City’s contribution for employee coverage; and, (2) City’s contribution for dependent coverage. The estimated cost of this benefit is $217,055. 

 

In line with the directive to improve basic services, the 2008 budget reflects the creation of 6 new street sweeper driver positions for the Public Works Department. This is in addition to the 29 FTEs for the Public Works Department and 20 FTEs for the Utilities Department that are proposed to be created the latter part of 2007 and funded through combination tax and revenue Certificates of Obligation for 2007. 

 

The following table summarizes the proposed new and deleted positions by department for 2008:

        

Department

FTE’s

 

Estimated Salary

& Benefits

 

 New Positions

 

Legal

1.00

46,450

Parks and Recreation

4.50

104,217

Traffic

1.00

34,671

Public Works

6.00

154,357

Fire

15.00

222,923

Community Development

2.00

68,201

ITSS

1.00

50,938

LCVB

.50

18,674

Totals

31

$700,431

 

 

 

 

Deleted Positions

 

Airport

6.00

(491,036)

Health

12.33

(16,012)

ITSS

1.00

(  42,611)

City Manager

3.00

(177,793)

Library

2.00

  (66,899)

Totals

24.33

($794,351)

                        *Represents the City’s 29% contribution of total cost; 71% or $555,000 is grant       funded.

 

General Fund

 

General Fund revenues for 2007 are estimated to total $119,995,953, a $5.2 million or 4.5% increase over 2006.  Estimated expenditures for 2007 are estimated to total $119,112,845, excluding a one time drawdown of $1,425,000 from fund balance. This represents an increase of $11.1 million or 10.2% over 2006.  The estimated ending fund balance of $20,547,312 represents an 16.6% of total expenditures excluding operating transfers out.  The proposed 2008 budgeted expenditures are $128,618,687 reflecting an increase of $8.6 million or 7% over 2007.

 

Current 2007 sales tax revenue for General Fund is estimated to total $25.4 million, representing a shortfall of $1.168 million from that previously budgeted. Sales tax growth is at 6.25% rather than that at the 12% initially projected.  A 12% increase was budgeted in 2007 due to the 13.5% growth in sales tax experienced in 2006 from 2005.  The proposed sales tax budgeted for 2008 is $27.4 million representing an increase of 8% or $2 million over the 2007 estimate.

 

General Fund receives fifty percent (50%) of bridge toll receipts.  Estimated transfer for 2007 is $19,191,551, a shortfall of $884,065 or 4.4% from budget.  The 2008 proposed transfer of $22,287,269 will be realized by the toll rate increase proposed by the Bridge Department.  Revenue will increase by $3,095,712 from 2007. 

 

General Fund expenditures increased $9.1 million from the 2007 original budget.  The categories which will have a significant impact (increase) are as follows:

 

Personnel                                 $4,052,690

Materials & Supplies               $   793,621

Contractual Services               $1,290,837

Other Charges                          $2,512,442

 

Investing in Our Infrastructure

 

On July 2, 2007, Council approved a resolution directing publication of a Notice of Intent to issue a Combination Tax and Certificates of Obligation for FY2007.  The following table illustrates the proposed activities and corresponding amounts:

 

Drainage

18,654,000

Fire

850,000

General Government

2,607,000

Parks

16,050,000

Streets

17,096,745

Traffic

1,000,000

Landfill

4,600,000

Waterworks

7,453,500

Wastewater

7,145,500

Equipment

13,891,775

 

Drainage, water and wastewater system enhancements continue and will allow for the community to prepare for and maintain its prosperity in the future.  Current challenges with drainage and flooding during significant rain events will be addressed and solved on a short and long-term basis. 

 

Projections remain on a positive level and the community is expected to see continued investment from outside firms as well as additional population increases.  With this comes the need to expand current systems to be able to meet the needs of these new consumers.  Some of those projects include the expansion of the current water and wastewater treatment facilities and the replacement of and installation of new water distribution and wastewater lines. 

 

Quality of Life

 

Parks and Recreational Facilities

 

The development and creation of park and recreational amenities continues to top the list of priorities with $5.7 million budgeted in FY2006 and an additional $16.05 million in FY2007.  This includes projects such as the construction of a municipal golf course, Independence Regional Park, El Eden Recreational Center Phase II, the Northwest Recreation Center and the East Side Recreation Center.

 

Police

 

Providing for the public safety of residents and visitors remains a top priority with 420 police officers budgeted for FY2008.  During FY2007, nine additional police officers were added to the General Fund.  We are proposing to add and additional 33 police officers in January 2008 at a cost of $1.5 million.  This is contingent on the approval by City Council to increase bridge toll revenues the latter part of FY2007.

 

A total of 27 officers are being transferred to General Fund after completing their third year with the COPS Universal Hiring grants.  Total cost for these officers is $1.8 million of which $1.4 million will be funded through the current match; $433,198 is the cost to the General Fund.   The Police Department’s budget of $44.3 million represents 34.4% of the City’s total 2008 General Fund budget, excluding the 1.5 million for the 33 additional officers.

 

Fire

 

The City of Laredo’s commitment to public safety is further reflected in its Fire Department’s budget of $32.7 million, representing 24.4 % of the City’s 2008 General Fund budget.  During 2007, the Fire Department was awarded “Adequate Fire and Emergency Response” (SAFER) Program funds providing  for the staffing of an additional 15 firefighters.  The academy is scheduled to start on October 1, 2007 with 23 cadets.  This will boost the Fire Department’s force to 352.

 

                        Organizational infrastructure

 

                        The firm of Waters Consultant Group was contracted to conduct a feasibility study of the City’s organization during June and July 2007.  A comprehensive report of their observations, findings and recommendations will be presented to City Council during the annual budget workshops on August 13, 14, 15, 2007.  Recommendations include consolidation of departments, upgrading of positions as well as the elimination of positions to streamline the City’s organizational structure and enhance operations.  Plans are to implement these recommendations on October 1, 2007.

 

Economic Prosperity

 

During FY2007, hotel accommodation and tourist offerings increased with the addition of three new hotels adding a total of 287 rooms to the current inventory.   These included the Holiday Inn Express, Comfort Suites and Value Place Inn.  With the recent hotel expansion there are a total of 4,081 rooms in the market and 44 hotels.  From 2003-2007, this market saw a significant increase of 1,181 total rooms constructed.  This is an average of about 3 hotels constructed per year, signifying major capital investment from industry sources.  Major brand names came with the expansion from Hilton and Marriot.  

 

Of significant importance to our community is the recent announcement that the Eagle Copper Tube Company will be constructing a manufacturing plant on a 75 acre tract at Unitec Industrial Park.  The establishment of this manufacturing facility represents an investment of over $100,000,000 and an opportunity to strengthen and diversify the local economy.  Projected is the creation of approximately 250 high-skilled, high –paying jobs with starting salaries of $17.00 per hour.  It is anticipated that a second phase will be added at this location once the plant is fully operational.

 

Legislative Issues

 

The City set out to make its priorities known to Laredo legislative representatives based on the state and federal agendas approved by Council in August 2006.  Efforts included setting up preliminary meetings with each office to inform them of our priorities and working with legislative staff during the Texas legislative session and the on-going session of Congress to keep the City’s priorities on track and in focus. Legislative activities were coordinated in conjunction with the City’s consultants.  While these actions served as an important step in the bill making and appropriations process, the City’s legislative trips to the state and nation’s capitols serve a crucial role in getting our priorities heard and enacted in several instances. 

 

In January 2007, the Mayor and Members of the Laredo City Council, together with staff, attended a three-day schedule of back-to-back meetings with individuals from the Governor’s Office, Lt. Governor’s Office, Speaker of the House, chairpersons of committees and state agencies such as Texas Department of Transportation, Texas Commission on Environmental Quality and the Texas Department of State Health Services, among others.  Of significance, during the trip to Austin, was the attendance of Webb County officials, namely the newly elected Judge Danny Valdez.  This same trip was replicated in Washington D.C in March 2007, where the Mayor and Members of Council and City staff met with White House staff, members of congress; including our two Texas Senators and federal representatives which included the U.S. Department of State, Department of Homeland Security, Department of Commerce and Federal Railroad Administration, among others.  The City has seen direct benefit from these legislative trips in the form of grant allocations and legislation to advance our priorities.  Most importantly, these trips allow delegates to convey, on a personal level, our needs for our City and how the community is impacted by certain legislation.   Of importance to note, this year’s Austin legislative trip was extended to three days from the usual two-day schedule.  Overall, this allowed the City delegation to have more meetings with high level officials.   The City of Laredo will continue to participate in the legislative process and bring about a higher level of awareness of our community’s legislative issues.

 

Closing Comments

 

Laredo continues to report tremendous growth, making it imperative that basic services related to infrastructure be addressed and opportunities to promote improved quality of life, public safety and economic diversity be supported.  The City of Laredo’s FY2008 Budget represents a balanced budget that appropriately addresses the community’s needs and reflects City Management’s continuing commitment to provide for a higher level of service.

 

Sincerely,

 

Carlos Villarreal

City Manager

 

VII.          EXECUTIVE SESSION

 

The City Council hereby reserves the right to go into executive session at any time during this public meeting, if such is requested by the City Attorney or other legal counsel for the City, pursuant to his or her duty under Section 551.071(2) of the Government Code, to consult privately with his or her client on an item on the agenda, or on a matter arising out of such item.

 

5.         Request for executive session pursuant to Texas Government Code Section 551.071 (1) (a) for consideration of a temporary extension by agreement of the court’s order of temporary relief in the case of Laredo Town Center, L.P. v. City of Laredo, Cause No. 2007-7CVQ000972D1 in the 49th District Court, Webb County, Texas; and return to open session for possible action.

 

            Motion to go into executive session pursuant to Texas Government Code Section 551.071 (1) (a) for consideration of a temporary extension by agreement of the court’s order of temporary relief in the case of Laredo Town Center, L.P. v. City of Laredo, Cause No. 2007-7CVQ000972D1 in the 49th District Court, Webb County, Texas; and return to open session for possible action.

 

                        Moved:  Cm. Garza

                        Second:  Cm. Amaya

                        For:  8                                      Against:  0                                           Abstain:  0