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MINUTES
REGULAR MEETING
 August 6, 2021

A Special Budget Workshop Meeting was held by the Schertz City Council of the City of Schertz, Texas, on August 6, 2021 at 8:30 a.m. in the Hal Baldwin Municipal Complex Council Chambers, 1400 Schertz Parkway, Building #4, Schertz, Texas. The following members present to-wit:
 
Present:
Mayor Ralph Gutierrez; Councilmember Mark Davis; Councilmember Rosemary Scott; Councilmember Jill Whittaker; Councilmember David Scagliola; Councilmember Allison Heyward; Councilmember Tim Brown
Absent:
Mayor Pro-Tem Michael Dahle
Staff present:
City Manager Dr. Mark Browne; Assistant City Manager Brian James; Assistant City Manager Charles Kelm; City Attorney Daniel Santee; City Secretary Brenda Dennis; Assistant to the City Manager Sarah Gonzalez; Economic Development Director Adrian Perez; EMS Director Jason Mabbitt; City Engineer Kathy Woodlee; Public Affairs Director Linda Klepper; Human Resource Manager Lindsey Cox; Director of Parks, Recreation & Community Development Lauren Shrum; Assistant Public Works Director Scott McCleloland; Finance Director James Walters; Public Works Director Suzanne Williams
Attendees:
Glen Outlaw, Judith Williams, Richard Dziewit, Michele Tereletsky
             
Call to Order (General Comments)

Mayor Gutierrez called the Budget Workshop to order at 8:30 a.m.
             
WELCOME/OVERVIEW

Mayor Gutierrez recognized City Manager Dr. Mark Browne who began the meeting with a COVID update.

DISCUSSION AND ACTION ITEMS

Budget Prioritization Process -
  • Discussion and direction for prioritizing the FY2021-22 budget, including but not limited to funding all programs needed to accomplish the City Mission and taking into consideration factors such as population growth, tax base development, large time sensitive infrastructure projects, right of way issues, staffing levels and structure, American Rescue Plan funding priorities and process, and prioritizing expanded programs that may be required in the future. (M. Browne/Executive Team)
City Manager Dr. Mark Browne provided the following retreat overview topics:
  • ARP Update
  • Workforce Discussion
  • Parks Events Overview
  • FY 21/22 Budget Highlights & Discussion
  • Cut Line Discussion
ARP Update
  • Based on 6/17/21 Council Workshop and the Final InterimTreasury Rule released 6/23/21, staff has made adjustments to proposal
  • Finance has confirmed application to TDEM for funds
  • Current status – waiting on delivery of funds
  • Receiving more money than we anticipated
    • Was: $9,166,792.19
    • Now: $10,417,416.86
    • Approx. $625K more per tranche
    • Recommend allocating this to water/sewer projects (FM 1518 Utility Relocates project)
  • ARP funds not factored into FY 21/22 budget – pending Council approval of Staff's recommendation
  • Staff will bring Resolution to Council
  • Revised Proposal for Spending
Staff's spending proposal for 1st tranche - $5.21 million
Category 1: Support public health expenditures
§ Was: $423,250
§ Now: $303,000

Category 2: Address negative economic impacts caused by the public health emergency
§ Was: $1.4 million
§ Now: No Change

Category 3: Replace lost public sector revenue
§ Was: $63,500
§ Now: $525,000 (up to 1.4 million)

Category 4: Provide premium pay for essential workers
§ Was: $500,000
§ Now: No Change

Category 5: Invest in water, sewer, and broadband infrastructure
§ Was: $2.2 million
§ Now: $2.48 million

Combined proposed amount: $5,208,000
Second Tranche- $5.21 million
  • Use entire amount in category 5 – investments in water, sewer, and broadband infrastructure
  • Recent approval of Water/Wastewater rate factors the commitment of this money to this category
  • Example projects
    • FM 1518 Utility Relocates (625K - "new" ARP money)
    • Greytown to Pfeil Loop Line Construction ($664K)
    • Aviation Heights Phase 8 Waterline replacements ($550K)
    • SCADA replacement Phases 1,2,3 ($189K total)Replace I35 Elevated Storage Tank piping ($400K)
    • Greenshire Drive AC Waterline Design & Construction ($3.3M)
    • Ware-Seguin Water Tank ($350K)
    • Wastewater Town Creek Phase IV Route Study/Design/Easement ($900K)
Tentative Framework for Grant Program
  • Communication of program
  • Application Process
  • Application Review
  • Establish Review Committee
  • Awarding of funds
Workforce Discussion Overview
  • High Turnover Departments
  • Potential COVID Impacts
  • Benchmark Data
  • Minimum Wage Analysis Discussion and recommendation
  • Accelerate Class & Comp Discussion and recommendation
Parks Events Overview
  • Brief review of 4 major City events
    • Jubilee
    • Trunk or Treat
    • Holidazzle
    • New Year's Eve Masquerade
  • Parks Schedule for FY 2021/22 & Labor Hour discussion
  • Comments/Direction from Council
FY21/22 Proposed Budget
  • FY21/22 Budget Highlights
  • Expanded Programs Proposed to Fund
    • Incode Replacement
    • Increase Minimum Wage - $15/hour
    • New Personnel
    • Contracted Building/Facilities Cleaning
    • Fleet programs
    • Animal Care HVAC
    • Additional SPAM Funding
FY2021-22 Budget
General Fund Proposed Budget $39,314,984
  • Increase of $1,012,404 or 2.7%, from FY 2020-21 Adopted Budget, not including infrastructure funding
  • Non Personnel Budgets decreased 2.3% due to the falloff of business incentive payments and completion of the public safety restroom remodel
  • Personnel Budgets increase 5.4% to act on the Class & Comp Study, Merit, insurance, ECI, and add 3 positions
Sales Tax - Franchise - Permit - Fees - Personnel - Operating - Capital Outlay Information Update
General Fund
  • Proposed Budget assumes a 26% Fund Balance requirement
  • Choices made in this budget will reduce the fund balance to 26% over the next 5 years
  • Long Term Debt Model
    • For I&S Fund - 5 Year Summary
    • Purpose:To avoid large tax increases in the future
    • Design:
      • Model is long term in nature
      • Includes all current debt obligations
      • Takes into account the growth of the tax base
  • 2021 Property Values
Tax Rate
Tax no new
$0.01 is equal to $406,000 revenue or $26.25 on the average home

Target Tax Rate


FY2021-22 City Tax Rate
  • At $0.5146 No New Revenue Rate
Existing Residents Average City Tax Bill
2020 Tax Bill = $1,252 Avg Home Value $244,500 2021
Tax Bill = $1,351 Avg Home Value $262,500
Increase = $ 99*
*This represents the increase of the tax bill on the average taxable home value, including new construction
  • At Current Rate $0.5121
Existing Residents Average City Tax Bill
2020 Tax Bill = $1,252 Avg Home Value $244,500
2021 Tax Bill = $1,344 Avg Home Value $262,500
Increase = $ 92* (decrease of $6.56)**
*This represents the increase of the tax bill on the average taxable home value, including new construction
**This represents the increase of the tax bill on the average existing home
  • At $0.5242 Voter Approval Rate
Existing Residents Average City Tax Bill
2020 Tax Bill = $1,252 Avg Home Value $244,500
2021 Tax Bill = $1,376 Avg Home Value $262,500
Increase = $ 124* (increase of $25**)

*This represents the increase of the tax bill on the average taxable home value, including new construction
**This represents the increase of the tax bill on the average existing home

Historic Tax Rates - M&O & I&S Discussion/Overview

Cut Line Discussion
  • Personnel Funded Now (Enterprise Funds or Other Items)
  • Programs Funded Now (Enterprise Funds or other Items)
  • Proposed Programs/Personnel Funded at Current Rate: $051.21
  • Programs/Personnel Funded at No New Revenue Rate: $0.5146
  • Could fund additional $118K in recurring costs (recommend personnel in green)

Cut Line Discussion at Voter Approval Rate - $0.5242
  • Could fund additional 500K recurring personnel (in yellow)
*Council priority from pre-budget retreat
**The requested Parks Irrigation Technician would be covered by the Plumber Position

Cut Line Discussion at Voter Approval Rate - $0.5242
OR Fund additional $500,000 in one-time programs (in yellow)

*Council priority from pre-budget retreat
**The requested Parks Irrigation Technicial would be covered by the Plumber Position

Cut Line Discussion - Remaining Unfunded Requests


During the above discussion sections changes were made that the Volunteer Coordinator will be moved below the cut line and Plumber position moved up, allocating $1 million to the business grant program instead of $1.4, updating the minimum wage to $15.00, Contracted Building/Facilities cleaning, fleet programs, Animal Care HVAC, additional SPAM funding and Incode replacement.
             
ADJOURNMENT

Mayor Gutierrez adjourned the workshop at 12:55 p.m.
_______________________________
Ralph Gutierrez, Mayor
ATTEST:


____________________________________
Brenda Dennis, City Secretary

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