Minutes TC 09/10/2001 - Special SessionMINUTES OF PUBLIC HEARING AND
SPECIAL TOWN COUNCIL MEETING
FOR THE
TOWN OF TROPHY CLUB
SEPTEMBER 10, 2001
STATE OF TEXAS
COUNTY OF DENTON
The Town Council of the Town of Trophy Club, Texas met in Public Hearing and Special Session on Monday,
September 10, 2001. The meeting was held within the boundaries of the Town and was open to the public.
SPECIAL SESSION
TOWN COUNCIL MEMBERS PRESENT:
Scott Smith
Mavor
Susan Edstrom
Mayor Pro Tern
Barry Huizenga
Council Member
Bill Matthai
Council Member
Scott Spence
Council Member
Roger Williams
Council Member
STAFF AND GUEST(S) PRESENT:
Donna Welsh
Town Manager
Shannon DePrater
Administrative Assistant
Randy Briggs
DPS Sergeant
Patricia Adams
Town Attorney
CALL TO ORDER AND ANNOUNCE A QUORUM:
Mayor Smith called the Special Meeting to order at 7:33 p.m., noting a quorum was present.
INVOCATION: Council Member Huizenga gave the invocation.
PLEDGE OF ALLEGIANCE TO THE AMERICAN AND TEXAS FLAG: Council Member Spence led the
pledges.
CITIZEN PRESENTATIONS: THIS IS AN OPPORTUNITY FOR CITIZENS TO ADDRESS THE
COUNCIL ON ANY MATTER WHETHER OR NOT IT IS POSTED ON THE AGENDA. THE
COUNCIL IS NOT PERMITTED TO TAKE ACTION ON OR DISCUSS ANY PRESENTATIONS MADE
TO THE COUNCIL AT THIS TIME CONCERNING AN ITEM NOT LISTED ON THE AGENDA. THE
COUNCIL WILL HEAR PRESENTATIONS ON SPECIFIC AGENDA ITEMS PRIOR TO THE
COUNCIL ADDRESSING THOSE ITEMS.
Mr. Eddie L. Price of 1 Cimarron Drive and Mr. Don Cotton of 538 Timber Ridge addressed the Council.
TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS TO CONDUCT A PUBLIC HEARING
ON THE FIXING AND LEVYING OF MUNICIPAL AD VALOREM TAXES FOR THE FISCAL YEAR
BEGINNING OCTOBER 1, 2001 AND ENDING SEPTEMBER 30, 2002.
Mr. Larry Stein of 7 Monterey, Ms. Connie White of 119 Trophy Club Drive, Mr. Harry Dayton of 103 Fairway
Village and Mr. Dick Swetnam of 5 Palmetto Court addressed the Council.
Page 2 Special Meeting/Public Hearing September 10, 2001
TOWN COUNCIL TO ADJOURN PUBLIC HEARING:
The Council adjourned the Public Hearing at 7:53 p.m.
SPECIAL SESSION
TOWN COUNCIL TO RECONVENE INTO SPECIAL SESSION:
The Council reconvened into Special Session at 7:53 p.m.
TOWN COUNCIL TO DISCUSS AND TAKE APPROPRIATE ACTION ON THE FIXING AND
LEVYING OF MUNICIPAL AD VALOREM TAXES FOR THE FISCAL YEAR BEGINNING OCTOBER
1, 2001 AND ENDING SEPTEMBER 30, 2002, INCLUDING THE DISCUSSION OF THE TAX RATE
FOR TAX YEAR 2001 AND SETTING THE TIME, PLACE AND DATE TO ADOPT THE TAX RATE
FOR TAX YEAR 2001.
Town Manager Donna Welsh recapped the budget for the Council. The projected revenue for this upcoming year is
$3,539,000. The projected expenditures in this budget are $3,376,000. If the Council passes this budget, this gives
us an excess of revenues over expenditures of $162,853. The fund balance ending this fiscal year if $927,000, this
says that the Town is extremely healthy. Three months operating costs are $844,000.
Ms. Welsh stated that the Town has always maintained three months operating in their reserves. By coming in
under budget each year the Town has been able to increase the fund balance while accomplishing the objectives set
out by the Council.
Based on the value of the Town, which is roughly $495 million, one cent from the tax rate will generate $49,053.
If the Council chooses, based on the $162,853, to lower the rate one cent, we will still have $113,800 to add to the
fund balance. If you gave a two cent tax reduction, that would give roughly $65,000 to add to the fund balance. In
any event you could give the two -cent tax reduction and still maintain well over the three months operating
reserve.
Council Member Spence stated that he was in favor of lowering the tax rate as much as allowed, two cents is
reasonable.
Council Member Huizenga expressed his concern regarding the talk of a tax rate decrease in lieu of the DPS
situation. Council Member Huizenga believes that this needs to be discussed more, if the DPS contract is broken,
he does not want to hinder funding. He would like to see the biggest tax reduction the Town can do without
hindering the budget.
Mayor Pro Tem Edstrom communicated that she shares Council Member Huizenga's concerns. Mayor Pro Tem
Edstrom revealed her disappointment that the Ways and Means Committee was not present, she would like to have
a written statement from the Ways and Means Committee pushing the envelope to what we can do.
Council Member Matthai is concerned about lowering the tax rate this year and then turning around the following
year and increasing the tax rate. The Town needs to continue with a positive venue, he would like to consider the
tax rate decrease and maybe compromise with a I'/ -cent decrease.
Council Member Williams conveyed that he would like to decrease the tax rate and is willing to go three cents. If
we go over budget, then tighten the belts and cut expenditures.
Mayor Smith stated that this is the taxpayer's money and that we need to give it back to the residents. Mayor
Smith complimented the financial status of the Town. We, as a community have been hit from all sides. The
Town is the only entity that can offer this reduction. Mayor Smith believes that we owe it to our residents. The
Council needs to leave tonight with a decision, we owe it to our residents.
Page 3 Special Meeting/Public Hearing September 10, 2001
Council Member Spence mentioned that with the park and road construction expenses, we are starting to pay as we
go.
Council Member Huizenga stated that he is in favor of a two -cent tax rate decrease.
Mayor Pro Tem Edstrom expressed that she has no issue with the budget process but would not want to do a three -
cent tax rate decrease.
Council Member Matthai shared that lie is in favor of giving the residents all we can, lie is in favor of a wo-cent
tax rate decrease.
Council Member Williams thinks that we could afford a three -cent tax rate decrease, but the consensus is a two -
cent tax rate decrease.
Mayor Smith stated that the Council Consensus is a two -cent reduction in the tax rate bringing the tax rate to
5.44051.
The Public Hearing to set the tax rate is September 21, 2001 at 8:00 a.m.
ADJOURN.
Council Member Williams made a motion to adjourn at 8:25 p.m. Council Member Huizenga seconded, motion
carried unanimously.
ATTEST:
Town Secretary, Town of Trophy Club, Texas