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June 25, 1996 Council Meeting June 25, 1996 The special called meeting of Mayor and Council was held at Smyrna City Hall. The meeting was called to order by presiding officer Mayor A. Max Bacon at 7:30 o'clock p.m. All council members were present. Also present was City Administrator Bob Thomson, City Clerk Melinda Dameron, City Attorney Charles E. Camp, and representatives of the press. Mayor Bacon asked Councilman Wood to give the invocation and lead the Pledge of Allegiance. (A) Approval of FY 97 Budget .. Mayor Bacon stated the main purpose of this meeting is the approval and adoption of the FY 97 budget for the City of Smyrna. Mayor Bacon then asked Councilman Wood, Chairman of the Finance and Administration Committee, to discuss this item. ... ... Councilman Wood stated the budget for FY 97 begins July 1, 1996, and runs through June 30, 1997. He stated the budget is a realistic budget which will allow the city to operate effectively and efficiently without a tax increase over the next year. He stated the City actually has three budgets broken down as follows: General Fund - which is the primary budget vehicle; Special Revenue Fund - which relates to matters such as 1 % Road funds, Community Development Block Grant (CDBG) monies, surcharge from the telephone bill to support the 911 Communication Center; Water and Sewer Fund budget which essentially operates similar to an enterprise fund and stands on its own in terms of revenue and expenses. Mr. Wood stated the General Fund budget of $20,356,135 is an increase of $1,546,233 over the 1996 FY budget of $18,809,902; Special Revenue is projected at $2,938,078 an increase of $243,010 over last year ($2,687,866); Water Sewer Fund proposed budget is $7,610,274 or $930,055 greater than the current year budget. Mr. Wood reminded there is no tax increase or rate increase involved in these budgets. He further stated the budget is predicated on the premise the city would adopt a millage rate of 11.50 mills to support the budget. He stated this is the same millage rate as the current year. He stated as a matter of information, the tax rate for the last several years is as follows: 1991 - 12.10 mills; 1992 - 11.60 mills; 1993 - 11.57 mills; 1994 - 11.54 mills and 1995 and 1996 and now for 1997 the millage rate is 11.50. Mr. Wood highlighted a few items on the revenue side of the General Fund as follows: The property taxes are expected to increase approximately 4.46% or $302,500 and all of this comes from growth and some annexations; the next largest entity in the revenue stream is the Franchise and other taxes which is about $338,000 projected increase and these revenues include franchise taxes from utility companies, insurance commission, and also the tax on alcoholic beverages; Sales and service charges is another major income item for the city and has a projected increase of $63,000 over the FY96 numbers and the major components of this increase are expected to be sanitation related fees, recycling fees, user fees, parks and recreation fees. Mr. Wood stated with respect to personnel services, city wide, there is a projected increase of $745,000 or about 6.72% and this includes a merit program with a maximum increase of up to 5 % for eligible employees and money is also budgeted for a classification program that was put into place by the council a year or so ago. Mr. Wood stated the new positions added to this budget include two part-time upgrades to full-time positions - one in court services and one in Parks in the Programs area; a Court Services Officer position to be filled that was in the 1996 budget but was not filled but it is funded and expected to be filled in FY97; also, the city is providing for four part-time lifeguards to staff the Senior Citizens Aquatic Center on Church Street. The amount budged for personnel services is $11.8 million, or 58% of the budget. Operating expenses will increase about $383,000 and most of this relates to professional services, jail expenses and rents and operating leases. Capital outlay is increasing about 59% or $417,000 in the Operating/General Fund budget. Mr. Wood stated in the Water/Sewer Fund the revenues are expected to increase approximately 15% or $949,000 based on past history and growth. Operating expenses for the water/sewer will have an increase of about $187,000 and a substantial portion of this will be for the cost of wholesale water and for the wastewater system. Capital outlay is $160,000 in water/sewer and that is mainly for vehicles. Total Special Revenues is the third segment of the budget process are expected to increase about 9% or $243,000 and the account with the largest increase is the CDBG money which is currently being used for the new Senior Aquatics Center on Church Street which should be open in the fall of this year. Mr. Wood stated from the point of analysis - Property Tax makes up 23% of the total proposed budget; franchise and other taxes represent 16%; licenses and permits - 4%; fines and forfeitures - 5%; sales and service charges - 35%; miscellaneous - 17%. He stated the expenditures in general government is 33%; public safety is 30% with a budget of $9,340,000; Community Service is 9% of the budget and is $2.6 million; Public Works is $8.8 million and represents 28% . As previously stated the total expenditures projected for FY97 including all three budgets, is $30,897,285. Mr. Wood stated there had been a question about total bonded debt, and the total bonds outstanding, which are all revenue bonds, is $23,035,000 in DDA bonds and $3,875,000 outstanding in Water and Sewer bonds or a total bond indebtedness of $27,910,000. Councilman Wood then stated one of the key things in this budget is that the current administration and June 25. 1996 Special Called Meeting: - continued the previous administration began a Capital Improvement Program, which was intended to reflect the expected capital expenditures over a five year period. Mr. Wood stated that program was implemented last year and this is the second year of this program. He stated the plan is updated every year and is a rolling-year plan. He stated the city will spend, in the capital improvement program, this year about a million and a half dollars and there are some other capital items that are not included in the plan but they are generally the smaller items that have a value of less than $15,000. Mr. Wood stated some of the larger capital items proposed in the budget are eight automobiles for the Police Department; renovation of Station 3; building addition in Community Development; replacement of light poles at city parks; resurfacing areas in the parks; repairs to Tolleson Park; new dump truck for Street Department; pickup trucks, 3/4 ton trucks and drainage improvements; Sanitation department will spend about $125,000 on a new garbage truck plus a replacement body for an existing truck; Water/Sewer - two pickup trucks, a service truck, vacuum truck and $300,000 has been budgeted for rehabilitation, expansion of water/sewer system. Councilman Wood stated there were other capital expenses which include the roads and bridges, work done under the 1 % Road money (about $1,363,000) based on the city's fair share allocation; CDBG monies - $698,000 expenditure on Aquatics Center and when you add the CIP, 1 % Road Money, CDBG and the capital items that are less than $15,000 -- actually in all these capital areas the city is going to spend $3.8 million. - Mayor Bacon asked if there was any comment from the council. There was none. Councilman Hawkins stated the city has been in a very fortunate situation in Smyrna and Cobb County due to the fact that the city has had new money - growth coming into the city and county. He stated it is the growth through annexation and redevelopment that is funding the additional expenses without raising the taxes. Councilman Hawkins commended Mr. Wood for the work that has been done on the budget. Councilman Scoggins stated he feels this council has been extremely conservative in trying to get growth to come into the city and has been very successful. He stated, along with the growth comes services that will be provided to our citizens. He stated he was very proud of the Senior Aquatics Center and feels that is the most important project that has been done. Mr. Scoggins then commended the Mayor and Council for the planning and long hours devoted to putting this budget in motion. ..., Councilman Lnenicka stated he would like to thank Finance Director Claudia Edgar and her staff, City Administrator Bob Thomson and the entire Finance Department, the Finance Committee chaired by Mr. Wood for once again coming up with a good budget. Mr. Lnenicka stated Mr. Wood was right in that not everyone got everything they wanted but all in all he feels it is a good budget for the citizens of Smyrna. Mr. Lnenicka then Commended the Mayor and council and the department heads for the work they have done on the budget. He then personally thanked the Mayor and council for the expenditures made on public safety the last couple of years. Councilman Cramer stated the 1% Road Sales Tax has enabled the city to help pave, curb and gutter, clean creeks and some other things that the city did not have to take funds from their budget in order to do ($1,486,000 from Local Option Sales Tax). Councilman Newcomb stated a balanced budget is realistically balanced and not artificially balanced, no millage increase - a flat millage rate - is good news. He stated he thought it was good news how eight elected officials work together to work out differences. Councilman Wood made a motion to approve the Fiscal Year 1997 budget beginning July 1, 1996, which is a total budget of $30,897,285. Councilman Hawkins seconded the motion. Motion was approved 7-0. (B) Approval of Tentative 1996 Millage Rate Councilman Wood stated the city does have to approve a millage rate tentatively tonight because by Georgia Law they have to wait until receipt of the certified tax digest from the Cobb County Tax ...., Commissioners office to do this officially. He stated it is the city's intention to stay with the 11.5 millage rage but at this point it must be approved as a tentative measure. Mr. Wood then made a motion the tentative millage rate for 1996 at 11.50 mills be approved. Councilman Hawkins seconded the motion. Motion was approved 7-0. June 25. 1996 Special Called Meeting - continued (C) Temporary Use Permit - ACOG/Goode Pope Architects - Park and Ride Facility - Cobb Center Parking Lot - 2200 South Cobb Drive Mayor Bacon stated this item was on the agenda at the June 17, 1996, council meeting and was tabled until tonight. Mayor Bacon stated Councilmen Cramer and Lnenicka met with the individuals involved. -- Councilman Cramer stated he and Councilman Lnenicka had met with the representatives of ACOG and resolved some of the concerns expressed at the earlier council meeting such as the use of police officers during peak times. Mr. Cramer stated ACOG assured them this lot will be an overflow lot from the Lockheed Parking Lot. Mr. Cramer stated he feels the lot will be heavily used. Councilman Cramer made a motion the temporary use permit for ACOG/Good Pope Architects for a park and ride facility at Cobb Center Parking Lot - 2200 South Cobb Drive - be approved for the period of time June 17, 1996 - August 29, 1996 with the following stipulation: that authorization be given to the Mayor to enter into a contract and authorize the Mayor to sign the contract with ACOG that ACOG will keep the lot and maintain it in a clean condition throughout the uses of the lot; also, ACOG will reimburse the City of Smyrna for the required public safety expenses. Councilman Lnenicka seconded the motion. Councilman Lnenicka stated one of the issues that was raised at the last meeting was for the public safety people that are going to be requested to be present and available for use by ACOG to help direct traffic at these lots and wanted to know who would pay for that. Mr. Lnenicka stated ACOG has promised the city and are supposed to furnish a letter which will be a part of whatever contract the Mayor signs that they will reimburse the city for public safety expenditures, in particular for the police department to direct traffic in and out of the lots during the designated dates and times. Mr. Lnenicka stated the citizens of Smyrna shouldn't and will not have to bear the expenses. Motion was approved 7-0. Mayor Bacon stated that is all the items that were on the agenda for this Special Called Meeting. He then stated that prior to the meeting, the city attorney advised the council there are a couple of legal matters that need to be addressed tonight dealing with property in the downtown area. Mayor Bacon then asked for a motion to suspend the rules for the purpose of discussing these items and voting on them. Councilman Scoggins made a motion to suspend the rules for the purpose of discussing matters dealing ..... with property in the downtown area. Councilman Cramer seconded the motion. The motion was approved 7-0. Mayor Bacon stated a motion is needed to appear in the minutes confirming the closure of all streets and alleys running in the development area in downtown Smyrna in Land Lots 521 and 488. This will ensure that there is no question arising on the title insurance as to the ownership of all ways, streets and alleys contained in the downtown. There are a couple of alleys in the Sunset Avenue section which the title examiner could not find on record whether or not they are closed, therefore, a motion is needed to officially confirm the fact the same were closed. Mayor Bacon stated this is one issue and Mr. Camp has indicated another issue also needs to be addressed dealing with an easement. Mayor Bacon asked that the Council take care of the first issue. Mayor Bacon stated this simply clears up the issues of the ways, streets and alleys and confirms they are closed. Councilman Scoggins made a motion confirming the closure of all streets and alleys in the downtown development area. Councilman Cramer seconded the motion. Motion was approved 7-0. Mayor Bacon stated on the plans for the development, which will be 21 or 22 homes, single-family, detached homes, price range from $125,000 - $160,000, there is a need for an easement to run through that property for a private street to run through that property. Mr. Camp stated it is contained largely, 99%, in the area which they are purchasing to put the houses on and the purpose of the city agreeing to the easement is for maintenance. He further stated the DDA and the developer had discussed this at a meeting and they accepted the idea of the city or DDA maintaining that street. Mr. Camp then showed the area on the plat (will run behind the houses and will also be an access to the undeveloped property ..... on the corner). Mayor Bacon asked if that road will run off Bank Street and back over to Hamby Street. Mr. Camp stated that was correct. Mayor Bacon then asked if it would be exclusively for those houses in that development. Mr. Camp responded that was correct. Councilman Hawkins asked if the city could preclude someone from driving through there and if would be a public street. Mr. Hawkins asked if the purpose of the street is to service the back of those houses - garbage trucks and provide several other places to park since there will be no on-street parking. Mr. Camp stated parking is the main thing and the DDA required that they park in the rear. June 25. 1996 Special Called Meeting - continued Councilman Lnenicka asked City Attorney Camp the width of the easement. Mr. Camp responded it is a twenty foot wide private street. Councilman Hawkins stated the term, private street, concerns him. He stated that if in fact it is a private street, the city does not have to approve anything. He further stated if this is a public street, then why would the city be approving the right of way for it. Mr. Camp responded the street would not be dedicated by the developer to the general public. Mr. Hawkins asked what role the city plays in it at all. Mr. Camp stated the city will have to maintain it. Mr. Lnenicka stated he agreed with Mr. Hawkins that if it is a private street, why should the city be involved. Mayor Bacon stated he did not think it was going to be a private street. Mr. Hawkins stated if they are going to dedicate it to the city, it would be a city street. Mr. Camp stated he did not think it was going to be dedicated. Ms. Capilouto stated she was under the impression they would dedicate it as she has been talking to them about purchasing a home there and that was one of her main concerns. Mr. Hawkins stated it would be to the developers advantage to deed it to the city as they would not have to maintain it. Mr. Camp stated the developers do want the city to maintain it, they just do not want anyone cutting through there. Councilman Wood stated he thinks they are looking for limited access. Mr. Hawkins stated if he votes on this issue it would be on the assumption that the street is going to be a public street and otherwise he does not feel the city has a role in the issue at all. Mr. Camp stated one problem with it being a public street is that it does not meet the width requirements of a public street as the city requires a 50' width and this will be a 20' wide street. Mr. Lnenicka asked if it is a private street why would they need an easement from a public body and a commitment for future public maintenance. Mr. Camp stated the maintenance is the problem. Mr. Lnenicka stated he did not feel the city could approve an easement for a private street on private property. Mr. Camp stated that the city could do this because the property transaction has not been closed. Mr. Lnenicka then asked if the city sells the property to a private entity, could not that private developer build whatever street he wants on his private land. Mr. Camp responded they could. Mr. Lnenicka stated if it is on private property, it would seem to be not a proper use of public money. Mr. Camp stated the public is going to reap the benefits of the profits on the houses because the city is going to receive some money from the developer. Mr. Lnenicka stated he felt the city could spend public money on public streets but if it is private property, he would be opposed to spending public funds on that. Mayor Bacon stated it was his understanding that in order for the property closing to take place, this easement must be approved by the city. He suggested the motion include the stipulation that the easement be approved and the details of the road maintenance issue will be discussed at the next council meeting. Mr. Hawkins asked who currently owns this property and Mr. Camp responded the City and the DDA. Mr. Hawkins then asked if the developer is asking the city to grant them an easement, which will give them the right to traverse that property, then will that property still be the property of the city with them having some type of permanent easement across the city's property. Mr. Camp stated it works both ways, the city would have an easement and the developer would have the easement. Mr. Camp stated the driveway would be used for cars to enter into and out of those lots. Mr. Hawkins then asked if the property would still belong to the city of Smyrna and the DDA. Mr. Camp responded yes, they would have easement rights to go on it and use it. Mr. Camp stated it is an easement both ways - by the developer and by the city. Mr. Wood then asked if each property owner is going to be giving an easement. Mr. Camp responded that was correct. Mr. Camp stated the easement would be given to the developer who will convey that interest under that piece of property with each lot. Mr. Hawkins stated he did not have any problem with what the city is doing but is going to maintain if the vote is taken tonight that anybody can use that driveway and it is his perception that they could not block anyone from using that driveway because it is going to be maintained by a public entity. He stated that was similar to not being able to block a public road from use by the public. Mayor Bacon stated he feels the city should approve this and at some point in time, possibly next week, have Knight Davidson come in and explain exactly how they see this. He further stated this is going to be a good venture for the city and the public. Mr. Camp stated if the driveway was wide enough to be a road, it would not be a problem. He stated they do not have enough land for this to be a road and it has to be a private drive. Mr. Hawkins stated he felt what is making the council nervous is they are being asked to vote on maintaining a private driveway and they have not done this before. Mr. Camp stated the word "private" is the cause of concern and both Mr. Hawkins and Lnenicka responded that was correct. Mayor Bacon stated this is part of the overall agreement the city had with Heritage Apartments, Stan Thomas and Associates, Barry Teague and now with Knight Davidson, for them to come in and develop this acreage _ 21 homes - and there are going to be some unique issues with this agreement. Councilman Scoggins made a motion that the City Attorney be authorized to execute any and all easements that are needed for the purpose of closing the property. Mr. Camp stated the motion should include that the Mayor be authorized to execute the easements. Mr. Hawkins stated he wanted the word "public" in the motion. Mayor Bacon then stated he was not sure he would call it a public alleyway, perhaps a public easement. Mr. Lnenicka then stated he knows the city has an interest in this and he would like to see it succeed as much as anyone else, but he is not convinced legally of the direction the city is going and would just feel much more comfortable at this point, not understanding the issues, to ...., ... ..., r'-/ June 25. 1996 Special Called Meeting - continued simply abstain on this vote. Mr. Scoggins restated his motion that the Mayor be authorized to execute agreements for any and all public easements that are needed for the purpose of closing the property. Mr. Hawkins seconded the motion. Motion was approved 6-0-1 with Mr. Lnenicka abstaining. Mayor Bacon stated this concludes all the items on the agenda. Councilman Lnenicka wished everyone a safe and Happy 4th of July. Mayor Bacon reminded everyone the City will not have 4th of July fireworks as they have opted to have them August 2, 1996. ... Mayor Bacon stated the next scheduled council meeting will be July 8, 1996. Mayor Bacon stated he was glad to see Cameron DeLoach, Smyrna Cable TV, back. With no further business, the meeting adjourned at 8:30 p.m. ~/;./ d)~ MELINDA DAMERON, CITY CLERK A.MAXBACON,MAYOR c.hDf\1ru ~\~ CHARLENE CAPILO TO, WARD 1 \2... ,J.Jve RON NEWCOMB, WARD 2 4A~- BILL SCOGGINS, WARD W!~ '1 ... ~DE $. L ~~~~ ...