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Min 09/10/2019 City of Wichita Falls City Council Meeting Minutes September 10, 2019 Item 1 - Call to Order The City Council of the City of Wichita Falls, Texas met in special session on the above with the following members present. Stephen L. Santellana - Mayor DeAndra Chenault - Mayor Pro Tem Tim Brewer - Councilors Jeff Browning - Steve Jackson - Eric West - Bobby Whiteley - Darron Leiker - City Manager Kinley Hegglund - City Attorney Marie Balthrop - City Clerk - - - - - - - - Mayor Santellana called the meeting to order at 8:30 a.m. - - - - - - - - Item 2a Invocation Tim Brewer, Councilor District 4, gave the invocation. - - - - - - - - Item 2b Pledge of Allegiance Mayor Santellana led the Pledge of Allegiance. - - - - - - - - Item 3 Public Hearing on Proposed Property Tax Rate for the 2018-2019 Fiscal Year 8:33 a.m. Mayor Santellana opened the Public Hearing at 8:33 a.m. Jessica Williams, CFO/Director of Finance, reviewed the proposed maximum property tax rate of $0.763323, which is higher than the effective tax rate of $0.706083 and results in additional tax revenue. Ms. Williams stated that this is the second and final public hearing on the tax rate and it gives the public the opportunity to express their opinions. There will be a public hearing on the budget on September 17, 2019 and the budget and tax rate will be adopted at the conclusion of the public hearing. Councilor Whiteley asked Ms. Williams to briefly cover the effective tax rate and the current tax rate . Ms. Williams stated that the effective tax rate is the rate that would generate the same property tax revenue as the preceding fiscal year. The effective tax rate is $0.706083, the current tax rate $0.72988, and the rollback rate is $0.773323. The highest rate that could be adopted would be the published proposed rate of $0.763323. Councilor Browning asked what our additional revenue would be if taxes are increased to $0.763323. Ms. Williams stated that the conservative estimate is approximately $1.68 million in additional revenue if taxes are increased to the proposed rate of $0.763323 over the current rate of $0.72988. Councilor Brewer asked if the increase in taxes on a $100,000 home would be $30.00 per year, and Ms. Williams confirmed it would be approximately $30.00. Councilor Browning stated that we are looking at a tax increase for pay scale increases and asked Darron Leiker, City Manager, about the revenues needed to cover the pay increases. Mr. Leiker discussed the required revenue to cover pay increases of 2.5% for all employees included in the preliminary budget and for pay increases of 5% for Police and Fire, 2% for non civil service and increasing TMRS to a 7% contribution for non civil service. Both scenarios would include the regular step plan pay increases. Councilor Browning asked if we have to go to the maximum rate of $0.763323 to get to the 5% pay increases for Police and Fire. Ms. Williams stated that to accomplish the alternative pay plan we would have to raise taxes to the maximum proposed rate. Mr. Leiker stated that council can adopt a rate anywhere from $0.763323 on down. Councilor Browning stated that he only wants to raise taxes as high as needed to accomplish the pay increase, and it was discussed that it would take the maximum rate to raise enough revenue to cover the proposed higher pay increases for Police and Fire. Councilor Browning asked if we budget for full staff and where we are at right now. Mr. Leiker stated that we do, but even when we are not at full staff we have minimum staffing that requires overtime pay, and it evens out in the budget. Councilor Browning asked for explanations on the TMRS contribution increase from 5% to 7% and why this is needed. Ms. Klyn discussed how Wichita Falls is the only city our size that is at the City Council Minutes September 10, 2019 Page 2 5% contribution rate and that this causes recruitment issues, especially for professional positions. Mr. Leiker stated that on average our employees at the 5% rate have to work an additional 5 years to attain the required retirement income as compared to our peer cities. It has been a long term goal to get to the 7% contribution rate. Councilor Brewer discussed the various open positions specifically in Public Works and asked if the retirement contribution rate played a part in the inability to fill these positions. Ms. Klyn stated that some employees consider this rate and others do not, it really depends on where they are in their career. As employees gain more tenure they begin to understand the importance of retirement. Mr. Leiker discussed an analysis of an employee with a $50,0000 salary and the impact the increased contributions would have at retirement after 30 years of service. At the 5% contribution rate the retirement balance would be approximately $500,000 and at the 7% rate the retirement balance would be approximately $700,000. Mr. Leiker stated that this really becomes an issue when we are trying to recruit individuals from other cities in Texas that already have the 7% contribution rate. Councilor Jackson inquired about the amount of overtime paid for Police and Fire. Mr. Leiker stated that he does not have the exact figures, but that we do budget for overtime and try to stay fully staffed to manage the amount of overtime required. Councilor Whiteley inquired about the new software system and if we will be able to see year to year comparisons in the future. Mr. Leiker stated that yes we would and that the new system allows better reporting. Councilor Whiteley stated that he understands the new software system caused issues this year, but in the future he would like to see budget information earlier in the year, and if we can in over or under budget from year to year. Mr. Leiker stated that staff does a year end true up of the major funds to see exactly where we ended compared to the budget. Mr. Leiker stated that last fiscal year we came in under budget, and discussed our conservative budgeting practices for revenues. Sgt. Spragins, President of the Wichita Falls Police Officers Association, addressed the City Council and thanked them for their service. Sgt. Spragins also thanked Darron Leiker and the city staff that have been very helpful throughout the year. He discussed the national crisis dealing with hiring law enforcement officers, and expressed his biggest concern is with our salary range being at the bottom of our peer cities. This past weekend a Police Officer exam was held and there were only 53 applicants, which is the lowest number we have ever had. After the first few phases of testing the number of applicants is down to less than 20. In 1996 there were 300 applicants for 12 jobs. From 2018 to 2019 there has been a 40% decrease in applicants for Police positions. Sgt. Spragins expressed the importance of being competitive and acknowledged that salary is not the only factor. The Police Officers Association is asking that the Council recognize that Police and Fire put their lives on the line every day and also how the pay plan helps all city employees with the TMRS contribution increase. Unfortunately, we are at a critical point in terms of how the state legislature has changed laws on how City Council Minutes September 10, 2019 Page 3 cities can manage funding for these increases. Sgt. Spragins expressed his appreciation to the Police Chief and Fire Chief and stated that he hopes that the Council will vote for the alternate pay proposal. Larry Robinson, 5559 Huntington Lane, stated that half of his property is inside city limits and half outside. His residence is outside city limits but his barn is inside city limits, and he asked how increased taxes would affect agriculture property. Mr. Robinson also asked what industries our comparable cities have that are producing increased revenues for those cities. Mr. Robinson stated that the council uses acronyms like TMRS and how it would be nice to have a handout sheet that gives the different figures that are being discussed. It was discussed that all of the tax rates have been published in the newspaper and provided on the website, and that Mr. Robinson could have asked for any information he needed prior to the meeting today. There was brief discussion about the fact that not all citizens have access to the internet, and Mr. Robinson stated that it would have been nice for the City to provide all of the tax numbers. Mr. Robinson discussed family members that no longer live in the city limits, and other accusations against the local government. Mayor Santellana stated that this is a public hearing on the tax rate and asked that he keep his comments related to the tax rate, and stated that he would be happy to meet with Mr. Robinson in the future to discuss any other issues. Mr. Robinson asked how the tax increase would affect agriculture property. Mr. Leiker stated that it depends on the value of the property, and discussed that on a property with a $100,000 value it is approximately a $30 per year increase. Mr. Robinson stated that from experience with previous Councils citizens have learned to distrust local government when they say they are going to adopt a lower rate than the published proposed rate. Councilor West stated that this Council has completed the same process the last two years, and published higher rates, but adopted the lower rate. Councilor West stated that Mr. Robinson has spoken to the council several times and accused corruption, but Councilor West does not see where there is corruption. Mr. Robinson stated an accusation against a previous council member, what history has taught him, and asked council to accept the lower tax rate. Mayor Santellana stated that the purpose of the tax rate hearing is so the council can hear from all sides, and how the Council has held the rate for as long as he has been in office but stated he cannot speak on what previous councils have done, but this council will listen to all of the information provided to them before making a decision. Mayor Santellana discussed what would be accomplished if a higher tax rate is adopted such as pay increases, increase in TMRS contribution rate, and stated that there is no corruption or hidden projects. Mr. Robinson asked about what new industries our comparable cities have that are bringing in more revenue. Mr. Leiker invited Mr. Robinson to a 4A meeting, and Mr. Robinson stated he would like Councilor Jackson to be on this board. It was stated that the Mayor and the Councilor At-Large both serve on this board and represent all of the City. th Mr. Leiker reminded the council that on August 20 when the budget was discussed, all of the tax rates where published, and that the City goes above and beyond compliance with state law on information provided to the public. City Council Minutes September 10, 2019 Page 4 Mayor Santellana stated that not everyone has a computer or smart phone, but everyone has the ability to call or stop by and ask for whatever information they would like. T.P. Hillman, 3616 Alexandria, addressed the council and stated that he has done his homework on cost of living rates. According to Bankrate.com Wichita Falls is 13% lower in cost of living than the rest of Texas, and 22% lower than the United States. Mr. Hillman stated that the total tax rate for Wichita County is $2.61 which equates to $2,600 year on property valued at $100,000 or $217.50 per month. With a median household income of $45,267 this tax amount equals 5% of yearly income. Mr. Hillman provided a handout with this information to the Council. Pat Robbins, 4829 Lovers Lane, discussed that although she has heard that we have held the tax rate, there is a problem with no growth since we are in the top 25% of highest taxed cities. Ms. Robbins supports Police and Fire, but stated we have to get away from being one of the highest taxed cities. Ms. Robbins discussed how our comparable cities are not comparing apples to apples in her opinion. Ms. Robbins stated that making the statement that this is our last chance due to new laws from the state is not a good statement to make. This legislation was passed due to citizens screaming about high taxes, and she discussed how older citizens are being forced out of their homes. Ms. Robbins discussed cost of living increases and how citizens on social security are not getting a 2% cost of living increase, and how the increase they do receive will be eaten up in Medicare increases. Ms. Robbins stated that our Council needs to be looking at what is best for our citizens, and although she would love to see an increase in pay for Police and Fire, we are losing population because of the high taxes. Ms. Robbins stated we need to look at what the state is doing for us with the new legislation, and the need for transparency. She discussed issues higher taxes cause older citizens, and encouraged the council to look at additional funding such as the Hotel Occupancy Venue Tax that is proposed. Ms. Robbins stated that she hopes that the city will reconsider raising taxes, and above all show integrity. Mayor Santellana stated that we have to weigh tax increases against pay and benefits, and how both factors effect recruitment. Ms. Robbins stated that we should visit with our young Officers, and Mr. Leiker stated that we do speak with our Officers, and that he does not believe that Officers are leaving due to property tax rates, but they leave primarily due to pay and benefits. Ms. Robbins suggested the possibility of having a Go Fund Me page for increased Officer pay. Mayor Santellana discussed that this is not the appropriate or practical way to raise funds for pay and how funds need to be perpetual year to year. Mayor Santellana stated that the Council will have to weigh all sides, he appreciates Ms. Robbins comments, and appreciates that she reached out in advance of the meeting to ask questions. to a raise in taxes, for two reasons; the increase in property values in Wichita Falls, and the possibility of a school bond proposal that will improve the overall quality of life in Wichita Falls. Ms. Robbins discussed issues with recruitment across the City due to the condition of our schools, and that she feels citizens of Wichita Falls would rather see a City Council Minutes September 10, 2019 Page 5 tax increase to improve our school facilities. Ms. Robbins stated that our Police and Fire deserve pay increases, but asked that they give serious consideration and hopes the Council chooses to not increase taxes. Ms. Robbins stated that just because they can increase the tax rate does not mean they should. Randal Reel, President of the Wichita Falls Professional Fire Fighters Association, stated that he believes the tax increase is a benefit and makes sense. He understands that some citizens may not be able to afford it, but we cannot continue to lose staff across the city. Mr. Reel discussed the Strategic Plan and that one of the goals is to reach an average pay scale. He stated that he travels across the state and it is a running joke that Wichita Falls is a training facility for the rest of Texas. Although he realizes that an increase in taxes is not pleasant, he feels it is a necessity and will help reach the strategic goals of the city. Mayor Santellana asked Sgt. Spragins if the increase in pay will be enough to help with recruitment. Sgt. Spragins believes that we do have a recruitment and retention problem and that it is a problem across the state. Out of 14 comparable cities we are at the bottom of the list for pay, and young people considering applying see that and they apply at other cities. The tax increase will bring Police close to average when cost of living is taken into consideration, and this will have to be continually adjusted year to year. Sgt. Spragins stated there has been a decrease in applicants from year to year, and discussed the cost of training and how money walks out the door when we lose officers. Chief Borrego stated that we do not stay fully staffed and discussed that when you lose new Officers, they do not have the chance to become experienced Officers in the future, and we need experienced Officers. He also stated that when people apply here they have most likely applied at six other departments and they are looking at the rate of pay, but acknowledged that pay is not the only factor. We have very professional Police and Fire departments and they deserve to have average pay. There were 143 applicants that were qualified for Police testing and we usually expect at least half to show up for testing. Only 53 showed up for testing and after background checks we are down to 17. There was brief discussion on the quality of officers we are recruiting and how we are not willing to reduce the standards in order to have additional applicants. Chief Borrego stated again that retention and having experienced officers is important. He feels this recommendation will affect civilian hires as well, and feels it is a good opportunity to help the entire city. Without the increase we will be further behind the cities we compare ourselves to, and he was shocked by the low number of applicants that showed up for testing. Public Safety for our city is extremely important and he strongly feels that law abiding citizens feel safe and he attributes that to our Police department. Chief Borrego also acknowledged that our departments have great training and equipment, and that competitive pay would be beneficial. Mayor Santellana discussed our low crime rate and how that is a benefit to our community, and that we have good quality officers. Mr. Leiker stated that crime rates do factor in when people are choosing where they want to live, and if we do not have adequately trained and staffed Police and Fire staff there is a greater possibility for lawsuits and other issues. City Council Minutes September 10, 2019 Page 6 Councilor Jackson asked the average age of the police department, and Chief Borrego stated he was not sure but possibly around 30 years old, and the majority of our patrol Officers are younger. These Officers are the ones that interact with citizens and make split second decision. Having experienced Officers in these positions is important. Councilor Jackson asked if we recruit ex-military and Chief Borrego stated that we do and that Human Resources aggressively recruits at colleges and military bases. Councilor Jackson asked Randal Reel for the average age of firefighters and Mr. Reel is unsure but feels we are progressively getting younger. Mr. Hillman stated that the average police patrol officer salary is $54,577, and the average firefighter pay is $45,781 and this information was found at salary.com. Mayor Santellana pointed out that these numbers include everything from very small cities to very large, and does not feel it is a good comparison. Dennis Rivard,1929 Perigo, discussed the proposed tax rates and the increase being from 3.25 7.5% depending on how they vote. He feels we are always pitting one group against another, and that the City has a set pay scale, and when people apply for positions it is their decision. If they want to make more money somewhere else, they can go there. He stated that the property owners are the employers that essentially sign the checks and the city manages the money citizens pay for services. He was unsure if there were unions, and asked if associations are the same as unions and it was stated that they are different. He also discussed that one of the ways the city could grow is to repeal some of our codes and ordinances for proposed businesses, and allow people to take responsibility for their business. Mr. Rivard recommends that the Council choose the lower tax rate. Councilor Whiteley stated that he appreciates everyone that spoke today, and their opinions and facts are appreciated. There are many spokes to this wheel, and he is very familiar with some of them as a retired firefighter. There are firefighters in many cities that were trained in Wichita Falls, and that is tens of thousands of dollars lost in training expenses when we lose firefighters. Cost of living is cheaper in Wichita Falls with housing appraisals being 30% lower than the rest of the State. If our appraisals were higher, the tax rate could be less. Councilor Whiteley appreciates Ms. Bishops comments and hopes that we continue to see the trend of rising appraisal values. Councilor Whiteley stated that he is a tax payer as well, and these are really difficult decisions to make and he appreciates all of the comments. Mayor Santellana closed the Public Hearing at 9:56 a.m. and encouraged citizens to reach out to staff or their Council representative if they have any questions. Mr. Leiker reminded council that next Tuesday council will vote on the budget, tax rate, Capital Improvement Plan, and the fee ordinance. Staff needs their feedback as soon as possible, especially on the tax rate as that drives the budget. Council agreed that they are looking at the two recommendations of $0.72988 and $0.763323. If there are any other proposed scenarios Council needs to express their intent as soon as possible. Ms. Williams stated that if they want to look at other scenarios there will be tradeoffs, City Council Minutes September 10, 2019 Page 7 and one of those would be the increased TMRS contributions. Mr. Leiker stated that if there is a desire to look at any other scenarios staff needs to know as soon as possible so they can run the numbers, and reminded council it takes a supermajority to approve the tax rate. - - - - - - - Item 5 Items of Concern to Members of the City Council 9:57 a.m. Members of the City Council presented the following matters: Councilor Chenault said good morning and thank you for coming out. Councilor Brewer thanked the Fire Department for the decommissioning of Station 3, it was a class act and he enjoyed it. The awards were well deserved and he complimented the Fire Department for a job well done. Councilor Jackson thanked everyone for coming out and giving their opinions and that the Council needs to take all of this information into account when making their decision. Councilor Jackson thanked Chief Borrego, Sgt. Spragins, and Mr. Reel for their comments. Mayor Santellana stated that although he did not get to attend the decommissioning, he did view videos on social media and was very impressed. He thanked Chief Prillaman for bringing back this tradition, and thanked everyone for their input and research on the tax rate. He stated that Council must look at the tax rate coupled with the cost of living when making their decision. Thank you to Officers that took time off to be here today, and thank you to Sgt. Spragins. It is nice to hear from everyone and to know that even those that do not want to raise taxes still appreciate our Police and Fire. - - - - - - - Item 6 Comments from the Public to Members of the City Council Concerning Items That Are Not on the City Council Agenda. 10:06 a.m. There were no comments from citizens. - - - - - - - Item 7 Executive Session City Council went into Executive Session at 10:06 a.m. in accordance with Texas Government Code §551.074 to deliberate the appointment, employment, evaluation, reassignment, duties, discipline, dismissal of a public officer or employee (including, but City Council Minutes September 10, 2019 Page 8 not limited to, City Manager, City Attorney, Judge of the Municipal Court, and City Clerk.) City Council reconvened at 12:42 p.m. Mayor Santellana announced that no votes or polls were taken. - - - - - - - Item 8 Adjourn Mayor Santellana adjourned the meeting at 12:42 p.m. th PASSED AND APPROVED this 17 day of September, 2019. ________________________________ Stephen L. Santellana, Mayor ATTEST: ____________________________________ Marie Balthrop, TRMC, CMC City Clerk City Council Minutes September 10, 2019 Page 9