07-31-2012 Workshop MinutesMINUTES
WORKSHOP SESSION
July 31, 2012
A Workshop was held by the Schertz City Council of the City of Schertz, Texas, on July 31,
2012, at 5:00 p.m., in the Municipal Complex Council Chambers, 1400 Schertz Parkway,
Building #4, Schertz, Texas. The following members present to -wit:
Mayor Pro -Tern George Antuna
Councilmember David Scagliola
Staff Present:
City Manager John Kessel
Executive Director David Harris
Chief of Staff Bob Cantu
Councilmember Jim Fowler
Councilmember Cedric Edwards
Executive Director John Bierschwale
Executive Director Brian James
City Secretary Brenda Dennis
Councilmember Michael Carpenter was absent.
CALL TO ORDER:
WELCOME / OVERVIEW:
• Presentation and discussion of the FY 2012 -13 Budget. (Staff)
Mayor Pro -Tem Antuna called the Workshop to order at 5:00 p.m. Mayor Pro -Tern
Antuna recognized City Manager John Kessel who provided opening statements
regarding the FY 2012 -13 proposed budget goals and priorities:
Budget Goals:
• Balanced structurally
• Conservative and responsible
• Follows financial policies
• Maintains current service levels
• Focuses on priorities
Budget Priorities:
• No Increase in M &O tax rate
• Replenish fund balance
• Support existing employees
• Implement strategic plan goals
• Increase community safety
Budget Highlights:
• Replenish Fund Balance in General Fund
• Cover Employee Health Insurance Increases
• Re- establish Employee Merit Program Midyear
• Traffic Safety Program (6 new positions)
• Improved Stormwater Management Program (1 new position)
• Increased Oversight of Public Infrastructure Construction (1 new position)
08 -02 -2011 Minutes
These 8 Positions are Cost Neutral to the General Fund
Mr. Kessel introduced Executive Director David Harris who provided the following
information regarding the proposed FY 2012 -13 budget answering questions from
Council:
Mr. Harris stated the FY 2012 -13 proposed budget is balanced structurally, conservative
and responsible, follows financial policies, maintains current service levels, and focuses
on priorities. Mr. Harris reviewed all funds, revenues, and expenses.
He stated tonight you have before you a balanced budget that would require a tax rate of
$0.5095; last year the tax rate was $0.4843. The $0.5095 is the proposed preliminary
maximum rate per $100 of value and is not subject to rollback. The proposed rate is
$0.5095 per '$100; the rollback rate is $0.5293 per $100. Mr. Harris reviewed the
following:
Change in Management Practices:
• Refocus on priorities
- Maintain appropriate Fund Balance
• Team Input
- Departments, Council, and Citizens
• Forward Looking
- Planning for future expenses
Consider project schedules
Budget Programs:
• YMCA Repairs
• Elevated Water Tank Construction
• Northcliffe sewer infiltration reduction
• Northcliffe and Aviation Heights waterline replacements
• Jazzfest
• Mater Communication Plan Phase 1
• Complete Salary Survey Adjustments
• Complete Gateway Planning
• Purchase of an additional Fire Engine
All FUNDS - REVENUES:
General Fund
$21,944.990
Special Events Fund
131,300
PEG Fund
131,300
Water & Sewer Fund
16,692,742
EMS Fund
5,872,625
Drainage Fund
998,957
Hotel Tax
492,717
Park Fund
247,025
Capital Recovery
3,765,624
I &S Fund
5,690,781
Park & Rec Foundation
236,175
Historical Committee
5,650
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SEDC 2,837,710
GRAND TOTAL $59,047,296
All FUNDS - EXPENSES:
Administration
$ 4,729,426
General Fund
16,843,314
Special Events Fund
131,300
PEG Fund
131,300
Water & Sewer Fund
16,679,039
EMS Fund
5,857,199
Drainage Fund
960,576
Hotel Tax
481,945
Park Fund
204,125
Capital Recovery
3,765,624
I &S Fund
5,262,352
Park & Rec Foundation
234,154
Historical Committee
5,650
SEDC
2,674,444
GRAND TOTAL
$57,960,148
GENERAL FUND REVENUES:
Property Taxes
$ 7,581,207
Sales Tax
5,637,958
Fees
2,997,169
Fund Transfers
1,792,139
Franchises
1,665,763
Permits
1,051,840
Inter - Jurisdictional
640,167
Miscellaneous
455,547
Other Taxes
28,000
Licenses
70,200
Library Fines
25,000
GRAND TOTAL
$21,944,900
GENERAL FUND EXPENSES:
General Government
$ 6,202,824
Internal Service
2,559,757
Police
5,321,412
Fire Rescue
2,922,552
Inspections
456,314
Marshal Service
619,746
Streets
1,014,171
Parks & Recreation
1,227,398
Library
856,373
Animal Services
3� 9193
GRAND TOTAL
$21,572,740
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PROPOSED TAX RATE:
Tax Rate
Current
Proposed
M & O
$0.2993
$0.2993
I &S
$0.1850
$0.2102
TOTAL
$0.4843
$0.5095
2011 Tax Bill = $799 Avg Home Value $164,985
2012 Tax Bill — $873 Avg Home Value $171,255
Increase =$ 74
2011 Tax Bill = $484 Avg Home Value $100,000
2012 Tax Bill = $510 Avg Home Value $100,000
Increase =$ 26
PROPOSED M &O $0.2993:
• Current approved staff
• Reserve Funding $370,000
• 10% Health Insurance cost increase
• Merit Program
• Completion of the Market Rate Wage Adjustment
• 4 additional Patrol Officers
• 1 additional Court Clerk
• 1 Civilian Evidence Technician
• Roadway Impact Fee Study
CAPITAL EXPENDITURES:
Capital Outlay
- Police — 5 replacement vehicles with equipment
- YMCA Repairs
- Fire Truck
PROPOSED I&S $0.2102
- Second Bond Issue to Complete:
Aquatic Center
Soccer /Athletic Fields
Main Street/FM 78
PROPERTY VALUES:
2011 Adjusted Taxable Value $ 2,152,560,461
2012 Equivalent Taxable Value $ 2,166,458,534
2012 New Properties +$ 140,936,393
2012 Adjusted Taxable Value $ 2,307,394,927
Difference $ 154,834,466
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SALES TAX
FY 2010 -11 FY 2011 -12 FY 2012 -13
Actual Estimate Budget
General $4,702,217 $5,172,439 $5,637,958
Fund +10% +9%
FY 2012 -13 5% growth for existing firms, and 4% growth for new business.
Finally, Mr, Harris provided the following information regarding the FY 2012 -13 budget
calendar:
July 31 File with City Secretary
August 7 Budget workshop, vote to place preliminary tax rate on agenda,
and schedule public hearings
August 8 First Community Budget Presentation - City Council Chambers, 5:00 p.m.
August 15 Second Community Budget Presentation - Schertz United Methodist
Church, 7:00 p.m.
August 21 First Public Hearing
August 28 Second Public Hearing and First Vote
September 4 Second Vote and Adoption
October 1 New budget in effect
ADJOURNMENT WORKSHOP:
Mayor Pro -Tern Antuna adjourned the worksho :19 p.m.
Mayor Pro- em George Antuna
ATTEST:
Bren a ennis, TRMC, MMC, CPM City Secretary
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