04-A City Council Budget Workshop
SPECIAL BUDGET WORKSHOP MEETING
OF THE CITY COUNCIL, CITY OF PARIS
September 17, 2007
The City Council of the City of Paris met for a special budget workshop meeting at 3:30
P. M. Monday, September 17,2007, at the City Council Chamber, 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 3:35 p.m.
2. Pledge of Allegiance and invocation.
Gene Anderson gave the invocation and Council Member Biard led the pledge.
3. Budget workshop - Discuss Proposed 2007-2008 Budget.
Mayor Freelen asked Kevin Carruth to explain the changes to the proposed budget. Kevin
outlined the changes as set out in Exhibit "A" attached hereto. Gene Anderson confirmed that the
remaining surplus was $334,396.00.
As previously discussed, it was a consensus of Council to leave the car allowances in the
budget and not implement them until a policy was in place. It was also a consensus of Council to
place on hold the combined pay plan and job reclassifications awaiting justification from Kevin
Carruth.
Kevin Carruth told Council the proposed increase of water and sewer lines would require a
public hearing and that it would need to be published. He said the other alternative would be to
adopt the budget without the increases and come back in October to take care of those items.
4. Adjournment.
There being no further business, Council Member Brown made a Motion to adjourn and
Budget Notes
At the September 12 budget workshop staff was directed by Council to make changes to the
proposed budget to accomplish the following goals:
1. Establish a maximum tax rate of $0.5600.
2. Charge the $305,000 in paym<::nts for year 2 of the existing General Fund lease payments
(from the current year) to the fund balance.
3. Keep the $305,000 expense in the proposed budget to pay cash for the $624,681 in
proposed capital items ($188,177 to cash purchase capital items and $436,504 originally
scheduled to lease-purchase capital items) and charge the difference of $319,681 to fund
balance.
This will have the net result of keeping $305,000 in the General Fund for the cash purchase of
capital items and use a total of $624,681 of the fund balance to make the payment of year two of
the existing leases and cash purchase the remaining capital items.
Proposed tax rate of $.5600 will consist of $0.46526 for M&O and $0.09474 for debt service.
This rate is slightly lower than the effective rate and results in a reduction of a property owner's
tax paid to the City (assuming their appraisal has not gone up).
In order to attain the $0.5600 rate $439,355 in General Fund expenses had to be eliminated. Car
allowances (except for those currently receiving them) were reduced to nine months to allow
time in the first quarter to develop a policy on vehicle allowances (if the ultimate decision is not
to provide vehicle allowances then the budgeted amounts will be available for unanticipated
expenses or go to fund balance at the end of the year). The General Fund was reduced $439,355
by eliminating the following items:
01-0607-12-00 $ 4,000 (City mgr. relocation expenses charged to current year)
01-0302-13-00 $ 1,800 (9 mo. car allowances-Atty & Asst Atty)
01-0302-15-00 $ 450 (9 mo. car allowance)
01-0302-21-00 $ 1,050 (9 mo. car allowance)
01-0101-31-00 $122,226 (delete Felony Crimes officers salary & benefits)
01-0107-31-00 $30,000 (Overtime)
01-0305-31-00 $ 1,000 (Court costs & fees)
01-0603-31-00 $ 500 (Judgments or damages)
01-0209-32-00 $ 2,500 (Minor apparatus)
01-0305-32-00 $ 2,000 (Court costs & fees)
01-0603-32-00 $ 1,500 (Judgments or damages)
01-0302-40-00 $ 450 (9 mo. car allowance)
01-0328-40-00 $20,000 (demolition)
01-0302-41-00 $ 1,425 (9 mo. car allowance)
01-0203-43-00 $25,000 (Concession Stand food)
01-0609-43-00 $ 354 (Pre-employment physicals)
01-0502-46-00 $20,000 (maintenance of equipment)
01-0609-46-00 $ 500 (Pre-employment physicals)
01-0908-46-98 $150,000 (Streets)
01-0205-89-00 $ 4,000 (Gasoline)
01-0207 -89-00 $ 600 (Tires)
Revised 9/14/07
Exhi bit II A"
01-0000-91-00 $50,000 (Contingency)
Total $439,355
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:
$2,209,077
$305,000 for payoff of current General Fund portion of
lease-purchase agreement with Liberty National Bank
for all but the third year of payments.
$ 305,000
$188,177 to purchase capital items in the 07-08 General
Fund budget plus $436,504 to purchase capital items in
the 07-08 General Fund budget originally scheduled to
be lease-purchased less $305,000 the General Fund
portion of the Liberty lease-purchase agreement.
$ 319,681
Capital Replacement Fund
$1,250,000
$~ .33lf,3"
Remaining Surplus
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. There is also $193,200 in
Water & Sewer Fund capital items that are scheduled to be lease-purchased in the proposed 07-
08 budget.
The Council directed 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)
10-0508-87-00 $ 8,500 (duplication oflease payment & capital purchase)
10-0211-82-00 $ 5,500 (chemicals)
10-0308-87 -00 $ 4,898 (electricity)
10-0402-82-00 $65,000 (bridge in rear of WTP)
Please contact the City Manager as soon as possible if you have any questions or comments.
Revised 9/14/07
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