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MINUTES
SPECIAL WORKSHOP MEETING
 August 2, 2019

A Special Mid-Budget Retreat Workshop Meeting was held by the Schertz City Council of the City of Schertz, Texas, on August 1, 2019, at 8:30 a.m. at the Community Center, 1400 Schertz Parkway, Building #3, Schertz, Texas. The following members present to-wit:
 
Present:
Mayor Michael Carpenter; Mayor Pro-Tem Allison Heyward; Councilmember Mark Davis; Councilmember Ralph Gutierrez; Councilmember Scott Larson; Councilmember David Scagliola; Councilmember Tim Brown
Absent:
Councilmember Cedric Edwards
Staff present:
City Manager Dr. Mark Browne; Assistant City Manager Brian James; City Attorney Daniel Santee; City Secretary Brenda Dennis; Assistant City Manager Charles Kelm; Assistant to the City Manager Sarah Gonzalez; Fire Chief Kade Long; Police Chief Michael Hansen; Finance Director James Walters; City Engineer Kathlee Woodlee; Engineer John Nowak; Fleet and Facilities Service Director John Harshman; EMS Operations Manager Brandon Hill; Executive Director Economic Development Kyle Kinateder; GIS Coordinator Tony McFalls; IT Director Myles Clauser; Human Resources & Purchasing Director Jessica Kurz; Public Affairs Director Linda Klepper; Assistant Finance Director Babett Martin; Water/Wastewater Manager Jimmy Hooks; Public Works Manager Doug Letbetter; Director of Planning & Community Development Lesa Wood; Director of Parks, Rec. & Community Services Lauren Shrum; Park Maintenance Crew Leader Jared Montney; Youth Services Librarian April Toman; Adult Services Librarian Elizabeth Bertoia
Attendees:
Richard Dziewit, Kristopher Evans, Christopher Johnson
             
Call to Order (General Comments)

Mayor Carpenter called the meeting to order at 8:33 a.m.
             
Welcome/Overview
  • Discussion and direction regarding mid-budget preparations, including but not limited to City Policies and Capital Improvement Program. (M. Browne)
City Manager Dr. Browne provided the following regarding the retreat overview.
Key Message

Stay the Course
Continue maintenance efforts in streets/parks/facilities
Emphasis on personnel in key areas
Utilize information in making budget decisions
Staffing study
Citizen survey
Class and comp
Strategic Plan
Citizen feedback

Use of Excess Reserve Funds
Invest the bulk in core infrastructure areas:
Streets ($2.7 million)
Sidewalks ($300K)
Drainage ($1 million)
Operations ($500K)

Various staff members provided the following highlights.
FY 18/19 Budget Review

Tax rate went from 0.4910 to 0.5146

Equated to $1.4 million in additional revenue (of which $570,000 tax property raised from new property added to tax rolls)
$1.2 million to M&O

$200,000 to I&S

Year over year base budget increase for General Fund: $2.1 million

Approved tax increase allowed funding for:
Key maintenance areas (streets, parks, facilities) - $705K

Expanded program items that increase efficiencies and items that directly impact our residents – $495K

It was critical to demonstrate progress on these items

Status of expanded programs – General Fund (with two months to go):
Inspections
2 Building Inspectors – Complete
Truck Mounts for Inspectors – Complete

Planning
Tablets for Commissioners – Complete
Tablets for Staff – Complete
Agenda Software – Complete

Event Facilities
Uplighting – Complete
Security Cameras – Complete
Cleaning Contract (Community Center) – In process
Engineering
Suite of Standardized Contracts – Complete
Surface Pro for Inspectors – Complete
Bluebeam Software – Complete
Police
Paid Academy Program – Complete
Student Resource Officer – Complete
Parks
Dodgeball League – Scheduled for August 2019
Kickball League – Complete
Daddy/Daughter Dance – Complete
Parks Program Guide – Complete
Senior Center Parking Lot – In design

Facilities
Cleaning Contract Expansion – Complete
Licensed HVAC Technician – Interviews being held
Councilmember Tim Brown arrived at 9:22 a.m.
HR
Compensation Study – Study to start September 2019
Driver's License Check Program – Complete
Police Quarterly Drug Screening – Drafted Policy
Library
Take online payments – Complete
Fund Library Material at 15% of Library Budget – Complete
Items Funded with Debt Service Issuance:
212 Aerial Ladder Platform – In process, Council approved bond sale July 2019

Mayor Carpenter recessed the meeting at 9:44 a.m. as the Consultant Jason Morado had arrived. Mayor reconvened the meeting at 9:58 a.m.

Citizen Survey Discussion

Assistant to the City Manager Sarah Gonzalez introduced Mr. Jason Morado with the ETC Institute who provided the following highlights from the 2019 Community Survey:

Purpose and Methodology
To objectively assess satisfaction among residents with the delivery of City
services
To help determine priorities for the community
To measure trends from previous survey
To compare the City’s performance with other communities regionally and nationally

Bottom Line Upfront
Residents Have a Very Positive Perception of the City
86% are satisfied with the overall quality of life in the City; only 2% are dissatisfied
The City Is Moving in the Right Direction
Satisfaction with City Services is Much Higher in Schertz than Other Communities
Schertz rated above the U.S. Average in 43 of 50 areas, and above the Texas Average in 42 of 50 areas
Satisfaction with the Overall Quality of City Services rated 36% above the U.S. Average, and 38% above the Texas Average
Satisfaction with Customer Service from City Employees rated 33% above the U.S. Average and 36% above the Texas Average

Top Community Priorities:
Traffic
Road Repair/Maintenance/Expansion
Planning for Rapid Growth
Enforcing Codes and Ordinances

Major Findings
Residents have a very positive perception of the City
86% of Residents are Satisfied with the overall quality of services provided by the City, compared to only 3% who are dissatisfied.
Less than 20% are dissatisfied with all major categories of City services.
Residents feel safe in the City.
The City is moving in the right direction.

Satisfaction with Parks and Recreation up from the 2016 survey.

Satisfaction with Public Works Services is up from 2016 in Cleanliness of streets, mowing/trimming but down with maintenance of major TxDOT roadways, maintenance of major city streets, availability of bike lanes.

Satisfaction with Code Enforcement decreased from the 2016 survey. From 71% to 70%.

Satisfaction with Communication is up from 2016 - Schertz magazine, efforts to keep residents informed about issues, usefulness of information available on web site, availability of information about operations. Down in level of fiscal transparency, level of public involvement in decision making, and how well City listens and responds was the same.

Top Priorities: - Biggest issues Schertz will face within the next five years:
Traffic, road repair/maintenance/expansion, Planning for rapid growth

Summary
Residents Have a Very Positive Perception of the City

86% are satisfied with the overall quality of life in the City; only 2% are dissatisfied

The City Is Moving in the Right Direction

Satisfaction with City Services is Much Higher in Schertz Than Other Communities

Schertz rated above the U.S. Average in 43 of 50 areas, and above the Texas Average in 42 of 50 areas
Satisfaction with the Overall Quality of City Services rated 36% above the U.S. Average, and 38% above the Texas Average

Satisfaction with Customer Service from City Employees rated 33% above the U.S. Average and 36% above the Texas Average

Top Community Priorities:
Traffic
Road Repair/Maintenance/Expansion
Planning for Rapid Growth
Enforcing Codes and Ordinances
Mayor Carpenter stated results could not have happened without staff execution and complimented their efforts.

FY 18/19 Budget Review - Continued

Street Preservation and Maintenance (SPAM)
The City has been working toward a three-prong approach to streets that is sustainable
Routine Maintenance
Street Preservation
Rehabilitation/Reconstruction

Discussion regarding SPAM: Where we are.

Discussion regarding Funding Levels – streets.

Discussion regarding the Reconstruction/Rehabilitation – lists, added capacity list (design), added capacity list (construction)

Discussion regarding the SPAM Construction Project List FY 18/19.

Discussion regarding the SPAM Construction Project status.

Discussion regarding the selection Criteria for Future Projects.

Discussion regarding future SPAM CIP Development Process.

Discussion regarding the Preservation List.

Discussion regarding future funding – Expanded FY 18/19 Sidewalk Program update

Discussion regarding FY 19/20 Sidewalk Plan

Discussion regarding drainage maintenance projects FY 18/19

Discussion regarding drainage maintenance projects FY 19/20

Discussion regarding drainage maintenance projects going forward

Discussion regarding sources of Parks Funding

Discussion regarding current year, next year Parks Maintenance Plan

Discussion regarding Facilities Services program, FY 18/19 Expanded Facilities program, FY 18/19 Facilities funding, Facilities Project list and future years expanded Facilities plan.
Mayor Carpenter recessed the meeting at 11:21 a.m., Mayor reconvened the meeting at 11:48 a.m.

FY 19/20 Budget discussion

2019 Property Values
2018 Taxable value $3,587,260,553
2019 Equivalent Taxable value $3,633,157,557
2019 New Taxable development +$ 128,088,116
2019 Adjusted Taxable value $3,761,245,673
Difference between adjusted Taxable Values $ 173,985,120

Discussion regarding Tax Rate

Effective: The tax rate which, on average, will keep the tax bill the same as the year prior.

Rollback: The rate if exceeded allows citizens to initiate a rollback election. The results of this election can reduce the adopted tax rate back to the rollback rate.
Current: The rate currently adopted by the City.

Proposed Max: The maximum rate set at which the final adopted rate cannot exceed.
Effective: $0.5057
Rollback: $0.5362
Current: $0.5146
Proposed Max: $0.5146 – Proposed budget assumes this rate
$0.01 is equal to $376,000 revenue or $23.30 on the average home

Discussion regarding Senate Bill 2 – 3.5% Cap – new terminology
Discussion regarding historical tax rates: M&O, I&S

FY 2019/20 City Tax Rate Discussion
At $0.5146 Current Rate

Existing Residents Average Tax Bill
2018 Tax Bill = $1,140 Avg Home Value $221,700
2019 Tax Bill = $1,200 Avg Home Value $233,200
Increase = $ 60* (increase of $21)**
*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 $0.5057 Effective Rate

Existing Residents Average Tax Bill
2018 Tax Bill = $1,140 Avg Home Value $221,700
2019 Tax Bill = $1,179 Avg Home Value $233,200
Increase = $ 39*
*This represents the increase of the tax bill on the average taxable home value, including new construction

At $0.5362 Rollback Rate

Existing Residents Average Tax Bill
2018 Tax Bill = $1,140 Avg Home Value $221,700
2019 Tax Bill = $1,250 Avg Home Value $233,200
Increase = $ 110* (increase of $79**)
*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

Discussion regarding exemptions
FY 2019-20 Budget
General Fund Proposed Budget
Increase $981,728 or 2.9%

Non Personnel Budgets decrease 2.5% due to fewer capital purchases and the one time expenses for Permit Software

Personnel Budgets increase 6.1% to act on the Class & Comp Study, Merit, insurance, add 9 positions, and updating the holiday pay policy

Discussions regarding budget per capita, court fines, sales tax, permits, franchise fees, personnel, operating expenses, capital outlay

2019 – 5 Year Forecast discussion

Cut Line Discussion
Expanded requests will be prioritized by items that:
Improve level of service
Increase efficiencies
Are cost effective over long-term

Positions will be prioritized based on staffing study results

Class & Comp implementation – address hiring and focus on areas where there are retention issues

Discussion regarding items Funded Current Rate $0.5146
Discussion regarding items Funded at the Effective rate $0.5057
Discussion regarding items Funded Rollback Rate $0.5362
Summary staff recommendation is to stay at the $0.5146 rate.
City Manager Dr. Mark Brown, Mayor Carpenter, and Staff answered questions from Council/Guests and made recommendations to Council.

Councilmember Ralph Gutierrez thanked staff for their hard work preparing for this event.

City Manager Dr. Mark Browne thanked staff for the hard work it took to prepare for the City Council Mid-Budget Retreat and made special mention of Assistant City Managers Brian James and Charles Kelm, Assistant to the City Manager Sarah Gonzalez and Finance Director James Walters.
             
Adjournment
Mayor Carpenter adjourned the workshop meetng at 1:19 p.m.
_______________________________
Michael R. Carpenter, Mayor
ATTEST:


____________________________________
Brenda Dennis,City Secretary

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