04-A City Council Budget Workshop (3)
SPECIAL BUDGET WORKSHOP MEETING
OF THE CITY COUNCIL, CITY OF P AIDS
September 12, 2007
The City Council of the City of Paris met for a special budget workshop meeting at 5:00
P. M. Wednesday, September 12, 2007, at the City Council Chamber, Conference Room, 107 E.
Kaufinan, Paris, Texas.
Present:
Mayor:
Jesse James Freelen
Council Members: Will Biard; Mary Ann Fisher; Stephen
Brown; Don Wilson; Kevin Gray; and Bill
Strathern, Mayor Pro Tern
City Staff: Kevin Carruth, City Manager; Kent
McIlyar, City Attorney; and Janice Ellis,
City Clerk
1. Mayor Freelen called the meeting to order at 5: 10 p.m.
Kevin Carruth gave the invocation.
2. Pledge of Allegiance.
Council Member Fisher led the pledge.
3. Budget workshop - Discuss Proposed 2007-2008 Budget.
Based on direction from City Council on September II, 2007, Kevin Carruth presented
Council with a list of proposed decreased budget items (See Exhibit "A" attached hereto). Council
Members Wilson and Strathem both stated they had a problem with taking money from reserves.
Mayor Freelen asked about the common practi ce for keeping reserves on hand. Kevin Carruth stated
90 to 120 days was common. Kevin said it was his understanding Council instructed him to move
funds from the reserves and place in the general fund. Mayor Freelen said that was correct, but that
was to be done for only one year. Kevin asked for a consensus as to what Council wanted to have
in reserves. Council discussed the possibility of cutting the car allowances, holding off on putting
the two pay plans together, and holding off on reclassifications. Council also discussed options of
paying off past leases.
Council Member Strathern left the meeting at 6: I 5 p.m.
Council Member Wilson wanted to know how difficult it would be for Kevin to go back and
make cuts in the amount of $436,000.00 without going into the reserves. Mayor Freelen said that
was not fair to Kevin, because it was futerim City Manager, Ernie Clark's budget and it was too
much to ask of Kevin in three days. Mayor Free1en stated they could adopt this budget and ask
Kevin to hold down expenses. Mayor Free/en further stated if they wanted Kevin to improve the
streets and clean up the city, they needed to give him the people and resources to do the job. Council
Member Wilson said he was not comfortable adopting this budget. Council Member Gray expressed
a desire to adopt the budget as presented.
Special Meeting
September 12, 2007
Page 2
Council Member Biard arrived to the meeting at 6:55 p.m.
Council discussed moving the capital expenses over to budgeted items and paying only year
two leases out of the reserves. Kevin stated the cost of the year two leases was $290,000.00.
Council Member Gray left the meeting at 7: I 0 p.m.
Mayor Free1en asked Council Member Wilson if he was asking Kevin Carruth to cut
$436,000.00 from the budget. Council Member Wilson answered in the affirmative. Kevin Carruth
said staff would bring the proposed amendments to Council on September 17th.
4. Adjournment.
There being no further business, Council Member Fisher made a Motion to adjourn and
Council Member Brown seconded the Motion. Motion carried,S ayes _ 0 nays. The meeting was
adjourned at 7:22 p.m.
JESSE JAMES FREELEN, MAYOR
JANICE ELLIS, CITY CLERK
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Budget Notes
09/12/07
Proposed tax rate of .56 consisting of:
M&O .46526
Debt .09474
$439,355 reduction needed to offset the decrease in the tax rate. That amount was achieved by
the following reductions.
01-1002-31-99 $13,000 (2 vehicle video systems)
01-1008- 31-99 $18,000 (primary radio channel repeater)
01-0101-31-00 $81,194 (delete Felony Crimes officers)
01-1002-32-99 $13,677 (Holmatro cutter and primary radio channel repeater)
01-0328-40-00 $20,000 (demolition)
01-0502-46-00 $20,000 (maintenance of equipment)
01-0801-46-97 $60,000 (ROW 271 South)
01-0901-49-98 $16,000 (car wash bay at garage)
01-1002-54-99 $42,000 (power stretchers)
01-1011-54-99 $25,500 (rehab defibrilators)
01-0508-xx-00 $145,500 (lease-purchase payment on items now bought out of surplus.
The revised current tax revenue (account 01-7010) is $6,207,127.
Total General Fund Surplus in excess of 25% reserve
Proposed uses of surplus:
$436,504 to purchase capital items originally intended
for lease-purchase in the 07-08 budget.
$578,051 for payoff of current general fund pOliion of
lease-purchase agreement with Liberty National Bank.
$188,177 to purchase capital items in the 07-08 General
Fund budget.
Capital Replacement Fund
Remaining Surplus
$2,209,077
-$ 1 ,202,732
-$1,006,345
$ 0
There is $50,000 of the Liberty National Bank lease-purchase agreement (in addition to the
General Fund amount above) related to the Water & Sewer Fund.
Plus there is $193,200 in Water & Sewer Fund capital items that are scheduled to be lease-
purchased in the proposed 07-08 budget.
The Council wanted a total increase of $466,898 budgeted in the Water & Sewer Fund for line
replacements. The proposed budget had $333,000 in proposed increases leaving an additional
$133,898 to be funded. That funding is being obtained by reducing the following accounts.
10-1002-86-99 $50,000 (backhoe)
1 0-0508-87-00 $ 8,500 (duplication oflease payment & capital purchase)
10-021 1 -82-00 $ 5,500 (chemicals)
10-0308-87-00 $ 4,898 (electricity)
10-0402-82-00 $65,000 (bridge in rear of WTP)
Exhibit "A"