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08-19-2024MINUTES OF THE CITY COUNCIL BUDGET WORKSHOP MEETING OF THE CITY OF PARIS, TEXAS August 19, 2024 The City Council of the City of Paris met for a special session at 3:30 p.m. on Monday, August 5, 2024, in the Council Chamber, 107 E. Kaufman, Paris, Texas. Present: Mayor: Mihir Pankaj Mayor Pro -Tem: Gary Savage Council Members: Mickey Ellis, Rebecca Norment, Alix Putnam, and Rudy Kessel City Staff: Rob Vine, Interim City Manager; Stephanie Harris, City Attorney; Janice Ellis, City Clerk; Gene Anderson, Finance Director; Rich Salter, Police Chief, Todd Mittge, City Engineer; Osei Amo- Mensah, City Planner; Thomas McMonagle, Fire Chief, Tom Hunt, Municipal Judge; Danny Rowell, Interim Utilities Director; Connie Lawman, Library Director; Duke McGee, Building Official, Paul Strahan, Airport Manager; Celso Arrieta, IT Manager, Sandy Collard, HR Director; and Clyde Crews, Fire Marshal Absent: Council Member: Shatara Moore 1. Call meeting to order. Mayor Pankaj called the meeting to order at 5:30 p.m. 2. Invocation. Finance Director Gene Anderson gave the invocation. 3. Citizens' Forum. Tommy Haynes, 3095 Abbott — he spoke in support of a COLA for retirees, citing most of them had served the City their entire lives. He asked the retirees to stand with him. 4. Discuss and provide direction on the FY 2024-2025 budget for the City of Paris. Interim City Manager Rob Vine said staff understood the top priority as being a salary increase for the police and he also said they would be presenting information about a COLA for retirees. Next, Finance Director Gene Anderson explained three options which included police salary increase, updated service credit and a COLA for retirees. He reviewed option A, which would increase the starting salary for police officers to $66,000.00 and said this would move Special Council Meeting August 19, 2024 Page 2 Paris to number 3 in comparison to other cities. He reviewed option B at $68,000.00 and said this would place Paris as number 2. He also reviewed option C which would put the City at number 2 but very close to Denison. Mr. Anderson explained how increasing the police salaries, updating the credit service and giving a COLA to the retirees could be done by initiating the de- minimis tax rate. He said they have to decide how to get from where we were to where we wanted to be. Mr. Anderson said the most economical approach to do this was to go with Option A. He said that they could see if they could attract and retain officers and if not, they could increase the salaries next year. Mr. Vine said if they go with the $66,000.00 increase, they would have to do a de -minimus tax rate for two years. Mayor Pro -Tem Savage wanted to know how risky it would be on the reserves. Mr. Anderson explained it was a low risk and that they had to retain four months in reserves. He said with the other two options, the risk tripled but that would not make the City dip into their reserves, and that this was doable. Mayor Pankaj said he originally wanted to go with $70,000.00 but after seeing where Paris is on a regional scale, he was good with $66,000.00 because Paris ranked third. Mayor Pro -Tem Savage wanted to know if they initiated the de-minimis rate to accomplish retiree COLA, what would that amount to for each household. Mr. Anderson said on an average homestead of $148,000.00, it would amount to $13.62 a year. Council Member Kessel favored $66,000.00 and asked Chief Salter if he thought they could attract new officers. Chief Salter said retention was the primary issue, because they were losing officers who had been with the City one to five years to local agencies. He also said that Lamar County provided take home cars for their deputies and the call volume was less than the City. Chief Salter said the County and School Districts recruit from the Police Department and that would continue until the City has a substantial pay gap. He emphasized the problem was with retention and that the competition was local. Mayor Pankaj asked if $66,000.00 would get the City where it needed to be. Chief Salter said $68,000.00 or $70,000.00. Council Member Putnam inquired about the cost of the COLA package and Mr. Anderson said it was about 1.1 million dollars, because a COLA could not be given to retirees without the updated credit service. Mayor Pankaj inquired of Council how they wished to proceed. Council Member Norment said she wanted to go for $70,000.00 because the thought that would get Paris where it needed to be and keep it there. Mayor Pro -Tem Savage said he was good with $68,000.00 or $70,000.00. He added that police officers protect the City and as a Council, they needed to do whatever was necessary. Mayor Pankaj said he was good with a compromise of $68,000.00 and doing a COLA for retirees. Council Member Kessel said he was good with $66,000.00 or $68,000.00 and if needed, they could bump it up to $70,000.00 next year. Council Member Putnam said police pay was priority and favored $70,000.00. Council Member Ellis said if they could do it, that he wanted to do $70,000.00 and provide the COLA. Mayor Pankaj suggested looking at items to see where they could cut from the budget. Mr. Vine asked if there were particular items that Council wanted to review. Mayor Pankaj referenced department 12 (city manager) and inquired about using some of those funds from the second assistant city manager position. Mr. Vine explained that would only be about $15,000.00 because the person who had been in that position was also serving as the director of a department. Mayor Pro -Tem Savage said when they bring someone in to fill that director position, that it would not be at the top pay. Council Member Norment said also there would be savings when they hire a new city manager, because they would not be bringing that person in at the same pay Grayson Path was making. Special Council Meeting August 19, 2024 Page 3 Mayor Pankaj asked how many police officers we were down. Chief Salter said the department was down 15 officers but had 6 in training. Next, Mayor Pro -Tem Savage asked about increasing the mowing budget and referenced that the corner lots needed to be mowed so people could see. He expressed concern about safety. Council Member Putnam asked that they look at the city attorney budget and specifically if they could cut out some from the line item for a tax lawyer, citing it was $55,000.00. City Attorney Stephanie Harris said that money was coming from revenue because the tax lawyer sold tax delinquent properties for the City. Council Member Putnam confirmed with Ms. Harris that the salaries were for her, and one paralegal and then contracted attorneys. She asked if that was always used. Ms. Harris said it was and that she had taken $10,000.00 off of that this year. She also said a prosecutor was part of the contract services. Council Member Putnam said she also wanted to look at cutting other places. Ms. Harris said she had room in her publications that she could cut and that would be several thousand dollars. Council Member Ellis wanted to know who set the salaries. Mr. Anderson said they were on a step and grade plan. Council Member Putnam inquired as to the review process of COLAs. Mr. Anderson said when the next salary study is done, it will be determined if Paris is in-line with other similar cities. Mayor Pro -Tem Savage inquired who determined re- classification of jobs. Mr. Vine said that the two that were being proposed for reclassification were recommended by Grayson Path, to help the Public Works Director and the IT Department. Next, Mr. Vine discussed with City Council police pay and a COLA for retirees. Mayor Pro -Tem Savage inquired if they did a salary increase to $70,000.00 would they still be available to do the updated service credit and a COLA for retirees. Mr. Anderson answered in the affirmative. Mr. Anderson reviewed the police pay increase options of $66,000.00, $68,000.00 and $70,000.00, along with the de-minimis tax rate and the effect of the tax rate for each option. Mayor Pankaj said he was in favor of $70,000.00 and inquired of Council what direction they wanted to give to Staff. Mayor Pro -Tem Savage inquired if Council could see an updated budget. Mr. Anderson said he could get it to them on Thursday. Council Member Ellis said he was in favor of the COLA for retirees. Council Member Norment favored the COLA but said the police department was her main focus. Council Member Putnam said she was fine with the COLA but the police department was her focus. Council Member Kessel said he was in favor of a COLA but preferred the police salary increase be $66,000.00 or $68,000.00. 5. Adjournment. There being no further business, a Motion to adjourn was made by Mayor Pro -Tem Savage and seconded by Council Member Norment. Motion carried, 6 ayes - 0 nays. Mayor Pankaj adjourned the meeting,o �alt!909t}n. �.�` F 1"E C17 I N ICE ELLIS CITY CLE. ////III I11100 J1HP K %U, MAYOR