Little Elm adopts 2007-08 fiscal year budget
By LAURA CHILDRESS

The Little Elm Town Council approved the 2007-08 fiscal year budget and tax rate Tuesday.

The $11 million budget is based on a tax rate of 53.58 cents per $100 evaluation, an increase of 6.58 cents over the current rate of 47 cents. The rise in the tax rate follows a 7-cent increase last year.

Councilwoman Beverly Hughes noted her continued concerns with the budget, reiterating that, in her opinion, it doesn't adequately provide for public safety and parks and recreation and, as such, she couldn't support it.

"I don't believe it reflects my priority for public safety and leisure activities," she said.

Hughes added that she also felt the tax rate was excessive and the town needed to learn to live within its means.

Fellow councilwoman Dee Dee Lear said, however, that parks and recreation funding has been increased and, under a new facilities use agreement with Little Elm ISD, the youth of the community should benefit tremendously.

While the 2007-08 budget includes few staff additions, with the exception of two police officers, a firefighter/paramedic and four parks and recreation employees, the council noted that it increased staffing dramatically last year, adding 33 new positions, with majority of those going toward public safety.

"We haven't ignored police and fire," Mayor Frank Kastner said.

Lear added that the town is only now seeing the full impact of the increase in personnel costs for those positions in the 2007-08 budget, since many of those positions weren't budgeted for the full year last year.

"We're having to pay the piper now for the increases last year," she said.

Councilman David Hillock said that while he agreed with Hughes that the town should live within its means, the revenue from development that allowed the town to keep the tax rate low is no longer there.

Meanwhile, however, the increase in population has also yielded an increase in the demand for services.

Hillock added that the town's tax rate is still well below those of several surrounding municipalities.

The council also approved, with Hughes opposing, a revised budget for the 2006-07 fiscal year.

Hughes noted her concerns with the total expenditures coming in almost $1 million over budget, along with the reserve fund falling short of 25 percent, as provided for in a resolution approved by the council last December.

Finance director Ryan Adams noted that the largest portion of the increase in expenditures was the total salaries of the employees added in the 2006-07 fiscal year. While the full salaries weren't originally budgeted for, Adams noted that including them in the revised budget was important for comparison purposes.

Adams added that the council had also approved many of the budget amendments included in the revised budget.

As for the reserve fund being short of 25 percent, Adams noted that, while the revised budget reflected a $243,000 shortfall in reserve funds, in actuality the town had 25 percent in reserve and would at the beginning of the new fiscal year.

Adams added that the resolution adopted by the council in December was a "best effort" resolution, stating that the town would "strive to maintain" 25 percent reserve funding.

Hillock noted that the budget revision was a formality, since the council had already approved the budget amendments throughout the year. He did recommend, however, that a mid-year budget revision be made. Hughes recommended that quarterly revisions be considered.

In a final action related to the budget, the council ratified an increase in property tax revenue, with Hughes opposing.

The council also debated at length an interlocal agreement with Hackberry for fire and ambulance services.

Hackberry paid $60 per water meter, or $10,800, for those services in 2006-07. During that period, the fire department responded to 45 emergencies in the town.

Under the new proposal by the town, similar to one made to Lakewood Village, Hackberry would pay $60 per meter, plus $625 per emergency run. Using the 45-run total from this fiscal year, Fire Chief Joe Florentino said the total fee for services would be $38,925.

Florentino noted that Hackberry officials have responded that the new fee structure would be difficult for them to handle, since it would be over 50 percent of the town's entire budget.

The town has instead offered to pay a flat fee of $65 per meter, or $11,700.

"We all want to be good neighbors but we have a fiscal responsibility to the residents of Little Elm,” Kastner said. "It doesn't make sense to subsidize our neighbors because they can't afford the services.” Hillock agreed.

"I think it's very bad business to subsidize another municipality's services," he said.

"I understand the moral obligation," Hillock added, "but I don't think we should enter a contract with other municipalities paying less for services than our residents.” Florentino added that Hackberry has no other options, since neither Frisco or The Colony will provide service.

Kastner stressed that while he was not advocating denying service, he recommended the municipalities be billed the full rate.

The council asked that the fire chief review the agreement, looking at the possibility of a per-run fee instead.

In other business, the council: * Approved, following a public hearing, a replat of Lots 2A and 3A, Block A, in the Villages at Eldorado to allow for increased parking and landscaping.

* Approved the consent agenda, consisting of the minutes of the Aug. 29 budget work session, Sept. 4 precouncil meeting, public hearing and regular council meeting, and Sept. 11 public hearing, work session and special meeting; final plat of the Independent Bank addition, located 320 feet east of the northwest intersection of Eldorado Parkway and Button Lane; a resolution adopting the Little Elm Community Development Corporation's articles of incorporation; a recommendation by the public relations committee to dismiss Michael Lederman for lack of attendance; and accepting the dedication of a sewer line easement across Lot 9, Block 3, of Frisco Park Estates.

* Appointed Bryan Sanders to the public relations committee.

* Approved a memorandum of understanding with LEISD regarding the town's furnishing of two school resource officers and a criminal justice instructor.

* Approved a clean fleet vehicle ordinance.

* Approved the 2008 step/grade pay plan for town employees.

* Approved health and dental insurance plans for town employees for Nov. 1, 2007, through Oct. 31, 2008.

* Received an update from the town manager on the possibility of the town's assuming responsibility for acquiring the necessary right-of-way for the widening of Eldorado Parkway through Little Elm. Town Manager Ivan Langford noted that the town's participation would not speed up the process and would be cost prohibitive since the town would not be fully reimbursed for the right-of-way acquisition.

Langford said environmental clearances for the project, however, have been approved, and the state contract for right-of-way acquisition should be signed this week.

* Discussed banning the discharge of firearms within the town following complaints by residents near Panther Creek regarding hunters.

Langford noted that while the U.S. Army Corps of Engineers is ultimately responsible for changing hunting regulations on Lewisville Lake and the adjacent shoreline, Congressman Michael Burgess could influence the Corps.

The council requested that an ordinance banning the discharge of firearms within the town be drafted and public input be sought regarding changing hunting regulations on Lewisville Lake and adjacent property.