4B Sales Tax Corporation Minutes - 08/13/1997 MINUTES OF THE
4B SALES TAX CORPORATION
August 13, 1997
Present:
Benay Ayers, President §
Rick Boone, Vice-President §
Paul Hughes, Secretary-Treasurer §
Arnold Oliver § Corporation Board Members
Tommy McCulloch, Jr. §
Ikard Smith §
Jim Berzina, City Manager § City Staff
Gregory D. Humbach, City Attorney §
Robert Powers, Assistant City Manager
Linda Merrill, Recording Secretary §
Absent:
Ray Gonzalez § Corporation Board Member
President Benay Ayers called the meeting to order at 9:02 a.m. The first item on the
agenda was approval of the minutes of August 5, 1997. Tommy McCulloch pointed
out that the minutes reflected the Council budget hearings started, rather than
starts, August 19. With that correction noted, Mr. McCulloch moved, and Paul
Hughes, seconded that the minutes be approved. The Board unanimously approved
the minutes as corrected.
The second item of business was discussion of the Board's proposed budget and
project plans for fiscal year 1997-98. City Manager Jim Berzina reminded the Board
that a conservative estimation of revenue to the Board from the sales tax is $2.2
Million. He then spoke concerning a list of projects the Council feels have priority
due to the fact they were campaign promises to the citizens if the half-cent sales tax
was approved.
1. Library. This $4 Million project has been partially ($2 Million) funded out
of the City's equity. The Council is relying upon receiving the other $2
Million from this Board at a rate of $350,000 per year over a seven-year
period. Tax anticipation notes have already been issued.
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2. Sirens. At their August 5 meeting, the Council approved a bid proposal for a
complete City-wide network of sirens. Five of these sirens were installed last
year, and 25 (plus one backup) are now needed to complete the project, at an
estimated cost of$700,000.
3. Police/Fire Training Center. The training center project is anticipated to
cost $2.8 Million. The City performs its own academy training, and may
expand into a regional training center. The police department would move
certain of its functions to the new center, but it would be primarily composed
of classrooms. There is no definite location for this structure as yet, but there
has been consideration of the old Washington School, or perhaps building a
new structure. A building facilitator would be contacted before an architect
would be hired to either build or reconstruct an existing facility.
4. Firing Range. This project would cost approximately $400,000.
5. Refurbishment of Fire Training Center. It is anticipated this project
would cost $450,000.
6. Fire Station Relocation. Some money has been set aside for this project.
The City is in the process of acquiring three pieces of property for relocation.
Three stations are set to be closed (locations on Kell, Midwestern Parkway
and Windthorst Road), and stations to be opened in the north, southeast and
west. This will allow for more efficient coverage of the city as it expands.
7. Radio System. Federal requirements are mandating changes to the City's
present system. Cost estimates are as high as $5 Million.
8. Miscellaneous. Other projects include streets, drainage, park
improvements, and health department expansion.
Mr. Berzina then spoke of the methods of finance. Three methods available include
(1) cash-only basis, (2) combination of cash and short-term obligations (i.e., seven-
year tax anticipation notes), and (3) long-term debt issue. Tax anticipation notes
can be issued upon the vote of the Council; long-term debt has to be approved by the
citizens of Wichita Falls.
The preliminary budget as submitted to the Council calls for property tax to drop
from 67.67 cents per $100 valuation to 51.38 cents per $100 valuation. This
represents a 16.3 center per $100 valuation property tax reduction. This applies the
1/2 cent sales tax.
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Arnold Oliver questioned why drainage projects was not higher on the list of
priorities. Mr. Berzina responded that it appears as quickly as is possible, once the
critical projects (library and sirens) have been accounted for. In terms of noticeable
community impact, there is not enough money to do drainage projects in
conjunction with those two projects.
Mr. McCulloch questioned whether there is a length of time obligation on either 4A
or 4B money. Mr. Humbach replied that the 4A sales tax can be voted out. the 4B
sales tax exists permanently, barring legislative amendment or the board dissolving
itself, which is not a likely occurrence. Mr. Berzina pointed out the 4A Board may
come to this Board at some point in the future, requesting funds to entice a major
industry to come to Wichita Falls.
Mr. Berzina suggested the Board study these issues among themselves. The sirens
project is a one-year pay-out, and could be handled on a cash basis. He will be able
to inform the Board in greater detail in 3-6 months concerning the fire and police
training centers. He suggests he come back to the Board at that time.
The Board members then expressed their preference to handle projects through a
combination of cash and short-term obligations. President Ayers called for a motion
on approving funds for any project this date. Mr. McCulloch moved that the Board
fund the tax anticipation notes of seven years for $350,000 per year for the
remainder of the library project. Rick Boone seconded the motion, and it was
approved unanimously.
Mr. Oliver then questioned Mr. Berzina about the importance of voting on the
sirens project. Mr. Berzina recommended the Board wait until the bid proposals for
the project have been received and approved by the City Council. He expects this to
occur at the Council's September 2 meeting.
Mr. Humbach suggested the Board consider forming a 2-3 member subcommittee to
work with the City staff in preparing its budget (due December 15) and make
recommendations to the Board on the various projects and possible funding
methods.
The Board decided to next meet September 4, 1997 at 9:00 a.m. The meeting
adjourned at 10:07 a.m. .
Linda Merrill, Recording Secretary Paul Hughes, Se tary-Treasurer