RED OAK — Members of the Red Oak City Council unanimously approved the proposed issuance or Series 2017 tax notes, valued at over $750,000, during the most recent session of the board.
The city intends to finance $759,873 in the form the tax notes with the of the sale funding street improvements, the purchase of equipment, vehicles, and improvements to the municipal facility.
City Finance Director, Miykael Reeve told the council that the seven-year note will mature in 2024 with the first interest payment due in Feb. 2018 and the first principal payment due in Feb. 2019.
The financing cost or $30,000 was budgeted.
The next action by the council will be during Sept. 8 regular where the board will take final action on note issuance. Following council's approval, the funds will be delivered to the city.
The Red Oak City Council took action to adopt the proposed tax rate for the 2017-18 tax year.
“There is no change in the rate from last year. There is no change in the total effective rate of $0.6490 from last year,” Reeves said. The rate was unanimously approved by a roll call vote.
Before the rate is officially adopted, two public hearings are required. The first hearing will be on Aug. 29 and the final hearing to during a special called meeting on Sept. 18.
Another financial item considered by the council was approving both medical and dental employee health plans.
City Manager Todd Fuller told the board, “CIGNA Health and Life Insurance Company offered a renewal rate increase of 11.54 percent for the current plan. Bids from Blue Cross and Blue Shield and Aetna were not competitive, but United Healthcare offered a similar plan with premiums at 4.6 percent less than our current plan. After further negotiation, CIGNA submitted an alternate plan with very similar coverage for the same premium the City currently pays.”
City Human Resources Director. Rhonda Lawson said that keeping CIGNA would eliminate confusion and any potential transitioning. "They will keep their current health card," Lawson explained. "Both the city and employees will pay the same amount they currently pay and plan benefits match or, in some cases, could exceed the current plan benefits.”
The council followed a staff recommendation to protect the city’s waste water collection system by requiring certain establishments to install properly sized grease traps and operate them properly
and establishing guidelines for how often systems must be pumped. Guidelines were also established for establishments that want to apply for an exemption.
Fuller told the council that in 2014 the city had a large number of sewer overflows and back up incidents. The existing ordinance amendment will reduce the number of fats, oils, and grease that enters to the sanitary sewer system, Fuller said.
An ordinance approving the modification of the code of ordinances regulating on-site sewage facilities, also known as septic tanks, was unanimously approved by the council.
“We are trying to take over the responsibility inside the city," Red Oak Mayor Alan Hugley said.
Hugley described the need by saying, at one time, the county was responsible for inspections.
"When the county quit, inspections fell on the Texas Commission on Environmental Control (TCEQ). Now it falls on the city with systems inside the city limits,” Hugley said.
Currently Red Oak has a TCEQ qualified inspector. However, inspections could also be done by certified contractors.
Following an executive session, three ordinance s were approved with all relating to right-of-way management. Specifically, the ordinances regulate the placement of communications nodes in the city right of ways.
In a separate action by the council was to join in with other cities hiring an attorney and seeking legal action against Senate Bill 1004. The motion by Tim Lightfoot was unanimously approved.
In other business, the council:
Approval of an ordinance for a zoning change requested by Alex Hughes to allow an accessory building.
Approved an ordinance for an application to change zoning from Agriculture to planned development to allow development of z single family dwelling in the Crystal Lake subdivision. The request was made by Harlan Properties.
An amendment approving a test amendment change in the Red Oak zoning ordinance providing regulations for non0conforming structures.
A request by Daniel Dauthit to amend the zoning ordinance to correct the building set back requirement and development regulations for a single family residence for a lot located on Methodist Street.
A zoning change request made by Veronica Mejia to allow a single family residence in the Berkley Heights Estates.
An ordinance for a commercial building request to allow additional building regulations for property located at 650 South Interstate Highway East. The application was made by Maria Gonzales.
An ordinance revising the quorum requirement for the Planning and Zoning Commission.
Chapter 8, Offenses and Nuisances, amending Article 8.04, Junk Vehicles and Abandoned Vehicles to insure the definition is consistent with the state law.