09-02-2014 MinutesMINUTES
REGULAR MEETING
September 2, 2014
A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on
September 2, 2014, at 6:00 p.m., in the Hal Baldwin Municipal Complex Council Chambers,
1400 Schertz Parkway, Building #4, Schertz, Texas. The following members present to -wit:
Mayor Michael Carpenter
Councilmember Jim Fowler
Councilmember Cedric Edwards
Staff Present:
Deputy City Manager John Bierschwale
Chief of Staff Bob Cantu
City Secretary Brenda Dennis
Call to Order
Mayor Pro -Tern Daryl John
Councilmember David Scagliola
Councilmember Matthew Duke
City Manager John Kessel
Executive Director Brian James
City Attorney Charles Zech
Deputy City Secretary Donna Schmoekel
Mayor Carpenter called the Regular Meeting to order at 6:00 p.m.
Texas (Councilmember Cedric
Councilmember Edwards provided the invocation followed by the Pledges of Allegiance to the
Flags of the United States and the State of Texas.
Presentations
• Proclamation recognizing National Payroll Week (Mayor Carpenter) (Andrea Spanley/
Sandra Jones to accept)
Mayor Carpenter introduced Speaker Coordinator of the Alamo Chapter of the American
Payroll Association Ms. Andrea Spanley and Web Master of the Alamo Chapter of the
American Payroll Association Ms. Sandra Jones. Mayor Carpenter read and presented
the proclamation. Ms. Spanley thanked Mayor and Council.
Councilmember Edwards left the meeting at 6:07p.m.
City Events and Announcements
• Announcements of upcoming City Events (J. BierschwaleB. James)
Mayor Carpenter recognized Executive Director of Development Brian James who
provided the following announcements:
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• Saturday, September 6, National POW /MIA Recognition Day Ceremony, 1000
FM 78, VFW Post 8315, 11:00 a.m.
• Monday, September 8, 2014, Ribbon Cutting for Mattenga's Pizzeria, 6044 FM
3009, Suite 290, 11:00 a.m.
• Thursday, September 11, 2014, North East Partnership Meeting, Olympia Hills
Golf & Conference Center, Universal City, 11:30 a.m. RSVP to Donna or Brenda
by Monday, September 8 if you will be attending.
• Tuesday, September 16, 2014, Chamber Luncheon, Schertz Civic Center,
Building #5, Guest Speaker, Michael Brough — Topic: "Translating Your Vision
into Words, 11:30 a.m.
SAVE THE DATE:
• Monday, October 20, Wendy Swan Memorial Park Dedication Northcliffe
Subdivision, 6:00 p.m.
• Announcements and recognitions by City Manager (J. Kessel)
Mayor Carpenter recognized City Manager John Kessel who stated he wanted to
cover one big topic and highlight two different groups of individuals. Mr. Kessel
stated that it is hard working City Employees, and provided the following examples:
(1) Tonight you will have a presentation by Mr. Walters who has been running the
City budget presentations for two (2) years now, and you are going to see one (1)
particular slide that addresses a concern of a citizen, Mr. Brockman, who brought it
up last week. Mr. Kessel stated that Mr. Walters does this remarkably well
throughout the entire process, which starts in the spring. Mr. Kessel stated that all the
comments we say; the comments from citizens, comments from Council and
comments from staff, Mr. James captures and tries to address almost seamlessly so
that you do not notice that it has happened. Mr. Kessel stated that Mr. Walters has
done a tremendous job, and when you see that particular slide of information, no one
had to ask him to add it, he did it on his own.
Mr. Kessel stated the other thing is a hidden group of individuals. Although they
should not be hidden, this is about our Public Works staff. Mr. Kessel stated that it
has been in the upper 90's, and 100 degrees for the last several weeks, and our Public
Works staff are out in the field, not in air conditioning, working on streets and water
and sewer lines. He stated it is really warm outside and our Public Works staff is
trying to stay hydrated. Mr. Kessel asked that when you see these individuals and the
crews, realize they are working day in and day out getting the job done just the same
as if the weather was nice. It takes a toll on them and by Friday it is tough for them
to work in those conditions and we just wanted everyone to know how much it is
appreciated.
Mayor Carpenter recognized Boy Scout Ben Reeder with Troop 343 who was in the audience
this evening. Mayor Carpenter came down from the dais and asked Ben to join him at the
podium and explain why he was here. Ben stated that he was here this evening to observe a
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Council meeting as it was a requirement on achieving his Citizenship in the Community Merit
badge. Mayor and Council welcomed Ben.
Workshop
Discussion and update regarding Main Street related projects — Historic grant program,
proposed zoning district, and Main Street bond project. (B. James/K. Woodlee/M.
Sanchez)
Mayor Carpenter recognized Director of Development Services Brian James who
provided a PowerPoint presentation regarding Main Street Focus with the following
highlights and answering questions from Council:
Projects
- Thoroughfare Plan update
- Main Street Bond Projects
- Parking Lot improvement
- Historic Preservation Incentive Program
- Main Street Mixed Use Zoning District
Thoroughfare Plan update
- The Gateway Plan notes the need to address the turning movements at FM 1518, First
Street, and Main Street that create a barrier to a pedestrian friendly environment.
- Main Street, from First Street to FM 1518 is designated as a truck route which also
creates challenges.
- Part of the purpose of the thoroughfare plan update is to address connectivity issues
and develop appropriate street cross sections.
Main Street Bond Projects
- Approximately $1.4 million is available for street improvements along Main Street.
- Pape Dawson, one of our on call engineering firms is being engaged to design this
project.
- They are currently reviewing existing information and will be preparing a scope of
work and cost proposal.
- A key element of the project is providing more defined useable on street parking.
Parking Lot Improvement
- The City controls the small vacant tract of land at the eastern corner of Main Street
and First Street.
Staff has developed a design for the parking lot that provides for 15 spaces, additional
landscaping and screening.
The lot can also be used during various Schertz festivals and events for exhibits,
grandstand seating, food vendors, etc.
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Historic Preservation Incentive Program
- The program is intended to protect and preserve the City's historic resources and
strengthen the economy by promoting the Main Street area to tourists and residents.
- Eligibility — must be at least 50 years old, within the area and all taxes and fees must
be current.
- Matching grant program of up to $20,000 with proposed work approved in advance
by the Schertz Historical Preservation Committee.
- Funding to come from the Hotel Occupancy Tax of up to $40,000 per year.
Main Street Mixed Use Zoning District
- Per the Gateway Plan, new zoning regulations should be put into place to:
Evaluate non - conforming standards and amend them to the extent possible —
setbacks, lot size, lot coverage, etc.
Evaluate use standards.
Revise off - street parking standards to fit the context and needs of Main Street.
Provides for reduced parking requirements.
Includes single family dwellings and commercial uses (generally NS —
Neighborhood Services)
Has less stringent setback and lot size requirements.
Mr. James addressed questions from Councilmembers.
Hearing of Residents:
Mayor Carpenter recognized the following who spoke:
Mrs. Maggie Titterington, Chamber President who came forward providing information
on the Chambers upcoming events:
- Monday, September 8, 2014, Ribbon Cutting and Grand Opening for Mattenga's
Pizzeria, 6044 FM 3009, Suite 290, 11:00 a.m.
- Tuesday, September 16, 2014, Chamber Luncheon, Schertz Civic Center, Building
#5, Guest Speaker, Michael Brough — Topic: "Translating Your Vision into Words ",
also they will be having their Membership 101 Class.
- Thursday, September 18, 2014, After -Hours Mixer, 5:30 to 7:00 p.m. hosted by
ReMax, 17156 11135 North in Schertz.
Mrs. Titterington also stated that they are still accepting their Leadership Core
applications, deadline is October 31, 2014, and you do not have to be a Chamber member
to apply, go to Schertzchamber.org. She stated the class is half full and she is excited that
Amazon will be leading a half morning class in industry and Caterpillar will be taking the
second half.
Mrs. Titterington also thanked Councilmember Scagliola and Fowler for attending the
Grand Opening and Ribbon cutting ceremony at Suzie's Thrift and Gifts and thanked
Mayor Carpenter, Councilmembers Scagliola and Fowler who came out last Friday to the
Senior Center for the check presentation by the HyPer Group.
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Finally, Mrs. Titterington stated that there will be 6 prints, 5 with a signature from Tim
Duncan, at the September 16th Schertz Chamber Luncheon. The Schertz Chamber will
begin the silent auction for these prints at the luncheon and will end the auction with the
other items October 3rd at the Caterpillar Golf Classic. Fifty percent of the proceeds
from the October 3rd Golf Classic will be donated to the Clemens and Steele High
School students which includes the sale of these auction items.
Mr. Robert Brockman, 1001 Elbel Road, who came forward stating that as the public
watch dog for the City one of his duties is to check the pedestrian crossing signals before
school starts. He stated that the crossing signal at Schertz Parkway and Woodland Oaks
failed his test. He contacted 311- Customer Service, who placed a work order to the
Public Works Department advising them of the problem. As it turned out, a switch had
gone out and they would have to order it. Mr. Brockman stated that it has been over ten
(10) days ago and inquired as to when the signal would be fixed. Mayor Carpenter stated
that they would get with Public Works to find out the status and get back to Mr.
Brockman on the progress.
Mr. Stephen Jameson, 673 Cotton Patch, who came forward stating that he has a situation
with the parking of his company vehicle. He stated that according to the Ordinance
anything over a 1 ton vehicle is not allowed to be parked on the City streets. He was
requesting information why an F550 that is less than 6000 pounds and does not require a
DOT sticker cannot be parked on this street. He inquired as to where he could obtain a
permit to park his company vehicle on the street as his driveway is to short. He indicated
that he has been parking his vehicle in an area that is unsafe. Mayor Carpenter directed
Mr. Jameson to meet with City Marshal Michael Harris to obtain the information he was
seeking.
Mayor Carpenter recognized Councilmember Fowler who requested that items 2 & 3 be removed
from the consent agenda for separate action.
Consent Agenda Items
1. Minutes — Approve the minutes of the regular meeting of August 26, 2014. (J. Kessel/B.
Dennis)
4. Resolution No. 14 -R -77 — Consideration and/or action approving a Resolution
authorizing a Management Services Agreement with Schertz Seguin Local Government
Corporation (SSLGC). (J. Bierschwale /S. Willoughby /A. Cockerell)
The following was read into record:
RESOLUTION NO. 14 -R -77
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS AUTHORIZING AN AGREEMENT FOR MANAGEMENT SERVICES
BETWEEN THE CITY OF SCHERTZ AND THE SCHERTZ /SEGUIN LOCAL
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GOVERNMENT CORPORATION WITH SCHERTZ /SEGUIN LOCAL
GOVERNMENT CORPORATION, AND OTHER MATTERS IN CONNECTION
THEREWITH
Mayor Carpenter recognized Councilmember Scagliola who moved, seconded by
Councilmember Duke to approve the consent agenda items 1 and 4. The vote was
unanimous with Mayor Pro -Tem John, Councilmembers Fowler, Scagliola, and Duke
voting yes and no one voting no. Councilmember Edwards was absent. Motion
Carried
Discussion and Action Items
2. Resolution No. 14 -R -75 - Schertz Seguin Local Government Corporation (SSLGC)
Fiscal Year 2014 -15 Annual Budget SSLGC Resolution # SSLGC #SSLGC R -14 -08
- Consideration and /or action approving the Schertz Seguin Local Government
Corporation (SSLGC) FY 2014 -15 Budget. (J. Bierschwale /S. Willoughby /A. Cockerell)
The following was read into record:
RESOLUTION NO. 14 -R -75
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS APPROVING THE SCHERTZ /SEGUIN LOCAL GOVERNMENT
CORPORATION FISCAL YEAR 2014 -15 ANNUAL BUDGET, AND OTHER
MATTERS IN CONNECTION THEREWITH
Mayor Carpenter recognized Councilmember Fowler who asked about line item #2,
"Capital Outlay" which showed a 11355% increase. He stated that he understand that
they are looking at the Cathotic Protection of the entire line. Mayor Carpenter
recognized Schertz - Seguin Local Government Corporation (SSLGC) General Manager
Alan Cockerell who confirmed yes. Councilmember Fowler stated that he was surprised
that this wasn't something that SSLGC had put money aside for several years in order to
do this, as this was going to be an on -going project. He stated that once they get it fixed
he understands that the anodes in the ground will have to be replaced every so often as
well. Councilmember Fowler asked Mr. Cockerell to provide an understanding as to why
they are being hit with the $2.2 million dollar project.
Mayor Carpenter recognized Mr. Alan Cockerell who stated it is actually a $2.7 million
dollar project. He stated that it is in their Capital Improvements Plan that they have and
that every five (5) years this is updated. Mr. Cockerell stated they knew this activity
needed to be done but it was a matter of finding a source of revenue to complete this task.
He stated that one thing that has happened for the next fiscal year with the onset of the
SAWS project is selling them access to water and then also treating and transporting their
water. They will have increased revenues, and with the increased revenues the SSLGC
Board decided that it would be an appropriate source to fund this project. Mr. Cockerell
stated that what they have had in the past, as you can see by the large percentage increase
in capital projects, is in the past they have had modest capital projects (i.e., bought a
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vehicle or two), and last year they did computer upgrades, so this large percentage
increase is surprising but because of the increased revenues they are able to fund the
majority of this project with cash on hand from their revenues next year. They felt it
appropriate to do this in the budget.
Councilmember Fowler stated that as he understands it and looks at the percent changes
in the different fund accounts, overall percent changes, taking out item 2, is running at a
50 percent increase in budget. He understands with revenue coming in the impact upon
the citizens is only about a 2 percent increase in their water rates. Mr. Cockerell stated
that the Corporations water rates are remaining the same. Mr. Cockerell provided
information that was provided by their rate consultant showing that the rates are 1.55 and
forecast them to be constant for the next four (4) years. Mr. Cockerell stated that they
will revisit this every year and look at the numbers but right now their forecast shows that
their rates are going to be level for the next four (4) years.
Councilmember Fowler stated that it looks like they have the capital improvements
covered and that was the important thing even though they are seeing a lot of increases;
the impact to the citizens for the next four and five years is not going to be changing.
Mr. Cockerell concurred that this is their projection. He stated that the contract that they
have with SAWS is very beneficial to the Corporation in providing some additional
revenues, their costs are going up but not at the same rate as their revenues are so that
gives us some additional revenue to do some things like the Cathotic Protection project
this next year and not have to go out and borrow the money.
Mayor Carpenter recognized Deputy City Manager John Bierschwale who stated that on
the 2% that the City has increased that is for our line maintenance repair; we have a lot of
old lines in Aviation Heights, Parkland Heights and also Northcliff where we have a lot
of work to be continued. Our 2% is covering this cost so that we do not have to go back
out and issue more bonds. Mr. Bierschwale stated that we are talking two different items.
The wholesale contract with Seguin is stable and they are projecting from the Schertz
Seguin side that it will be stable for another four years.
Councilmember Fowler stated that this information answered his questions and he
doesn't believe it is necessary for him to ask any more questions on Item 3. No further
questions from Council.
Mayor Carpenter recognized Councilmember Fowler who moved, seconded by
Councilmember Scagliola to approve Item 2, Resolution No. 14 -R -75. The vote was
unanimous with Mayor Pro -Tent John, Councilmembers Fowler, Scagliola, and Duke
voting yes and no one voting no. Councilmember Edwards was absent. Motion
Carried.
3. Resolution No. 14 -R -76 - Schertz Seguin Local Government Corporation (SSLGC)
Fiscal Year 2014 -15 Water Rates SSLGC Resolution # SSLGC #SSLGC R -14 -09 -
Consideration and/or action approving the Schertz Seguin Local Government
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Corporation (SSLGC) FY 2014 -15 Water rates. (J. Bierschwale /S. Willoughby /A.
Cockerell)
The following was read into record:
RESOLUTION NO. 14 -R -76
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS APPROVING THE SCHERTZ /SEGUIN LOCAL GOVERNMENT
CORPORATION FISCAL YEAR 2014 -15 WATER RATES, AND OTHER
MATTERS IN CONNECTION THEREWITH
Council had no discussion on this item as information was provided on item 2.
Mayor Carpenter recognized Councilmember Fowler who moved, seconded by
Councilmember Scagliola to approve Item 3, Resolution No. 14 -R -76. Tile vote was
unanimous with Mayor Pro -Ten: John, Councilmembers Fowler, Scagliola, and Duke
voting yes and no one voting no. Councilmember Edwards was absent. Motion
Carried
5. Ordinance No. 14 -T -42 - City of Schertz FY 2014 -15 Budget - Consideration and/or
action approving an Ordinance on the proposed FY 2014 -15 Budget. Filial Reading (J.
Kessel/J. Walters)
The following was read into record:
ORDINANCE NO. 14 -T -42
AN ORDINANCE ADOPTING A BUDGET FOR THE FISCAL YEAR
BEGINNING OCTOBER 1, 2014, AND ENDING SEPTEMBER 30, 2015, IN
ACCORDANCE WITH THE CHARTER OF THE CITY OF SCHERTZ, TEXAS;
PROVIDING FOR THE FILING OF THE BUDGET; PROVIDING THAT THIS
ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES; PROVIDING
A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
Mayor Carpenter recognized Senior Budget/Finance Analyst James Walters who
provided a PowerPoint presentation on the FY2014 -15 budget with a few reflected
changes from last week. The changes are: 1) the City is planning to hold the upcoming
Charter election in November of 2015, and 2) the funding for the election will be in the
FY 2015 -16 Budget and will be removed from the current proposed budget. Mayor
Carpenter added that since the Charter requires us to seat a Charter Review Commission
for 180 days, even if we seated the commission within the next 30 days that 180 days
would push us out past the time when we have to call for the election. This would not be
enough time for the public to review it properly and would be a disservice to them. It
makes more sense to not be in a rush to try and meet state law and simply have the
election in November.
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Mr. Walters showed a new slide of the local property tax rates of our neighboring cities
as had been requested by resident Robert Brockman at last week's council meeting.
Schertz is in the middle (0.4974) of its benchmark cities (population of about 50,000) of
New Braunfels and San Marcos. Schertz is lower than New Braunfels, Live Oak,
Seguin, San Marcos, San Antonio and Converse. Selma, Garden Ridge, and Cibolo are
all below this mark. Most of the cities either went with the effective rate or stayed flat.
The one exception was Live Oak who went up with their rate due to a bond issue.
Mr. Walters continued with his presentation answering questions from Council.
Mayor Carpenter recognized Councilmember Scagliola who stated this budget is
balanced using the current rate and staff did an exceptional job on it. However it is not
conservatie based on his definition. He does not disagree with the expenditures listed but
believes the budget is founded on overly pessimistic assumptions. He thinks the
assumptions ignore the efficiencies of our staff and the potential of our economic
development strategy and the opportunity to return some of those benefits to the residents
in lower taxes. He thinks we could reduce the tax rate below it and still come up with an
exceptionally balanced budget.
Mayor carpenter recognized Councilmember Fowler who said he disagreed with
Councilmember Scagliola; he believes in making a midcourse correction when you can
make very small changes and not wait until a big change is needed and you may not be
able to pull off a realignment. At this time, he would rather we be more conservative
now than wait four or five years later when we wished we had done otherwise.
Mayor Carpenter recognized Councilmember Fowler who moved, seconded by
Councilmember Duke to approve Ordinance No. 14 -T -42 final reading. The vote was 3 -I
with Mayor Pro -Tem John, Councilmembers Fowler and Duke voting yes and
Councilmember Scagliola voting no. Motion Carried Councilmember Edwards was
absent.
6. Ordinance No. 14 -T -43 — Tax Rate for Fiscal Year 2014 -15 - Consideration and/or
action approving an Ordinance on the proposed FY 2014 -15 Tax Rate. Final Reading (J.
Kessel/J. Walters)
The following was read into record:
ORDINANCE NO. 14 -T -43
AN ORDINANCE APPROVING THE APPRAISAL ROLL; SETTING THE TAX
RATE; LEVYING AND ASSESSING GENERAL AND SPECIAL AD VALOREM
TAXES FOR THE USE AND SUPPORT OF THE MUNICIPAL GOVERNMENT
OF THE CITY OF SCHERTZ, TEXAS; APPORTIONING THE LEVIES FOR
SPECIFIC PURPOSES; PROVIDING A SEVERABILITY CLAUSE; AND
PROVIDING AN EFFECTIVE DATE.
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Mayor Carpenter stated he was going to hold off on Item 6 for a minute while he went back
to read the caption on Item 5. Mayor Carpenter proceeded to read the caption for Item 5
and then he returned to Item 6.
Mayor Carpenter recognized Senior Budget/Finance Analyst James Walters who presented
a PowerPoint slide of the Target Tax Rates
Target Tax Rate
Tax
Current
Recommended
Alternative
Rate
Maximum
M &O
$0.3010
$0.3164
$0.3139
I &S
$0.1964
$0.1810
$0.1810
Total
$0.4974
$0.4974
$0.4949
Mayor Carpenter recognized Councilmember Scagliola who stated he doesn't believe it is
possible to get our tax rate down this year to the effective rate, but he believes it is possible
to go with the 0.4949 and still be moving in the right direction.
Mayor Carpenter recognized Councilmember Duke who stated this is a booming
community and we need to meet the new costs coming up to ensure we have the same
quality of life ten years from now that we have today. If we don't stay up to it, things can
change. The Recommended Rate is the way to go to ensure we can be consistent.
Councilmember Fowler stated, suppose in a few years we have another major rainstorm or
tornado and it goes through our maintenance shop or equipment. He prefers to be
conservative knowing the type of weather we have can change everything; he is
comfortable with staying with our 0.4974 rate.
Mayor Carpenter stated we learned something when we lowered the tax rate by three cents
some eight years ago. There is danger in being too aggressive with either a reduction or an
increase in taxation. After that three cent reduction, a recession followed it and we had to
draw down on our reserves to maintain our status. We also had to raise the tax rate to
address that. We are in a growth position now and will continue for a while. We have to
manage that. We have deliberately gone after driving our economic engine and have had
some success. He suggests if we are talking about a quarter cent reduction or increase, if
we stay within that realm, we are doing our job as a council. The impact to each family
will be small. Being that we just had a strong year he would advocate that we go with the
alternative rate of 0.4949, or like Mr. Fowler suggested a 0.4962. He stated when we are in
a strong year position, we should evaluate whether it makes sense to make that quarter cent
reduction. He stated when we are in a lean year, work to hold the tax rate, and in a difficult
or down year look at a quarter cent increase. We can manage those positions. He thinks this
has been a strong year and we can afford to go with a small reduction in the tax rate.
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Mayor Carpenter recognized Councilmember Scagliola who moved that property taxes be
increased by the adoption of a tax rate of 0.4949, which is effectively a 1.9% increase in
the tax rate, seconded by Councilmember Fowler. The vote was 2 -2 with Mayor Pro -
Tem John, and Councilmember Scagliola voting yes and Councilmembers Fowler and
Duke voting no. Mayor Carpenter voted in the affirmative and broke the tie vote,
resulting in a final vote of 3 -2. Councilmember Edwards was absent. Motion Carried.
7. Cancellation of September 9, 2014 City Council Meeting Consideration and/or
action cancelling the September 9, 2014 City Council meeting due to lack of agenda
items. (J. Bierschwale /Council)
Mayor Carpenter recognized Councilmember Scagliola who moved, seconded by
Councilmember Fowler to cancel the September 9, 2014 City Council meeting. The vote
was unanimous with Mayor Pro -Tem John, Councilmembers Fowler, Scagliola,
Edwards, and Duke voting yes and no one voting no. Motion Carried.
Councilmember Edwards returned to the meeting at 7:15 p.m.
Mayor Carpenter was about to move to the Roll Call portion of the agenda and recognized
Councilmember Duke who asked if there was a procedure where they could reconsider
Item 6 now that Councilmember Edwards had arrived. Mayor Carpenter stated yes they
could. He referred to the City of Schertz City Council Rules of Conduct and Procedures. A
motion to reconsider must be made by one of the voting members who voted on the
winning side of the exercise. A main motion can be made from the chair by the mayor as
well as stated in Article 9, Motions and Meeting Procedures - Under Section 9.3 Motion
Procedures - Item 12c, Main Motions - Item 12 is to take action or reconsider an action
taken - A second to the motion would be required. It is debatable and amenable; it is not
resolvable by me and the chair alone. It requires an affirmable vote by three
Councilmembers; it does not require a super majority.
The mayor read Section 9.14 to the council: "To Take Action or reconsider an Action;
Main Motions. These main motions state proposed policy or action on a substantive issue
being considered by the Council. As such, the motion can be an initial call to take
particular action; to reconsider action taken; or to rescind a prior decision. Although lowest
in precedence among all motions, main motions are clearly the most important: through
their content, the business decisions of the Council are determined. A main motion can be
made only when a prior main motion has been disposed of, It cannot interrupt a speaker; a
second is required; it is debatable and amendable; and an affirmative vote of three (3)
Councilmembers is required unless a greater vote is prescribed by the Charter or State law.
Mayor Carpenter recognized Councilmember Duke who stated the reason for the fact that
we believe we shouldn't be talking about $68,000 is, we have a lot going on in Schertz and
the budget is not fat by any means; to ask the staff to go back and cut $68,000 is not
appropriate. It's a blip one way or the other for the families here. Looking at the five (5)
year forecast, it looks like we are just getting back to even on that reserve fund. The
budget is a responsible one and we shouldn't go back and ask staff to cut more programs
09 -2 -2014 Minutes Page - 11 -
and we shouldn't just rely on that big win to come in the future. That's why I asked now
that the full Council is present to go back and reconsider Item 6.
Mayor Carpenter recognized Councilmember Scagliola who asked Mr. Walters at what rate
was the anticipated increase for health insurance set at in this proposed budget? The answer
was 8 %. The actual increase turned out to be 0 %. So that is 8% right there, which
according to calculations turns out to be $140,000, which was overestimated for this year's
budget. All he is asking for is $68,000. That's all he had to say.
Mayor Carpenter recognized Councilmember Duke who asked Mr. Walters this question:
On the capital improvements that we need to make for the Civic Center, are we making all
those expenditures? Mr. Walters said, no, we had already planned over $100,000 of capital
improvements. So we are pushing a lot of those things aside to make the budget we are
living with. So there is a lot of the 8% that is gone here and it exemplifies all the work the
staff has done to balance all the variables out there. They put together a balanced budget.
Now what we have gotten down to is we have approved a budget and then immediately
afterward approved a tax rate that does not fund that budget. This is irresponsible.
Mayor Carpenter reminded everyone that the motion currently before us is whether or not
we are going to reconsider the item (Item 6); if we choose to do so we will start the debate
process again and have lots of time to talk about the rate.
Mayor Carpenter recognized Councilmember Duke who moved, seconded by
Councilmember Edwards to reconsider Item 6. The vote was 3 -2, with Councilmembers
Fowler, Edwards, and Duke voting yes and Mayor Pro -Tern John and Councilmember
Scagliola voting no. Motion Carried
6. Ordinance No. 14 -T -43 — Tax Rate for Fiscal Year 2014 -15 - Consideration and/or
action approving an Ordinance on the proposed FY 2014 -15 Tax Rate. Final Reading (J.
Kessel/J. Walters)
ORDINANCE NO. 14 -T -43
AN ORDINANCE APPROVING THE APPRAISAL ROLL; SETTING THE TAX
RATE; LEVYING AND ASSESSING GENERAL AND SPECIAL AD VALOREM
TAXES FOR THE USE AND SUPPORT OF THE MUNICIPAL GOVERNMENT
OF THE CITY OF SCHERTZ, TEXAS; APPORTIONING THE LEVIES FOR
SPECIFIC PURPOSES; PROVIDING A SEVERABILITY CLAUSE; AND
PROVIDING AN EFFECTIVE DATE.
Mayor Carpenter recognized Councilmember Fowler who stated he agrees with
Councilmember Duke, but what he remembers from what we said a few weeks ago, if we
went with the 0.4949 tax rate we would not be able to hire an employee because of the lack
of money there. He made an offer a few weeks ago because he was not comfortable going
that low but was willing to go to a 0.4962, which indicates we would lose about $30,000.
09 -2 -2014 Minutes Page - 12
His position is to go with this 0.4962 tax rate and we could still hire the employee and then
just find the rest of the money elsewhere.
Mayor Carpenter recognized Councilmember Edwards who asked City Manager John
Kessel if since he came on board as City Manager, hasn't he said that there are no sacred
cows; we need to trim where we need to trim and be more efficient. Is this not a model of
efficiency we are continuously looking for? Mr. Kessel replied.yes and we will continue to
look regardless of other items that will be approved; the staff has clear direction that our
goal is not to spend above the approved budget item but try and get the job done and meet
the goal for that amount or less if possible. Councilmember Edwards said so we have
department heads who we have told to manage their budgets and now we don't have faith
in funding that particular budget. This makes no sense and is irresponsible. To
Councilmember Fowlers point, 0.4962, he could live with that tax rate. As elected
officials, we are supposed to set the vision; we have a city manager who said this is what
our forecast is. We have residents and our future at stake. He thinks it is irresponsible to
pass the budget and then come back and lower the tax rate.
Mayor Carpenter summarized by saying what we have before us is we are taking another
vote on the original motion of setting the tax rate at 0.4949. That motion remains before us
and we can debate this as long as we want and then take a vote on it again. Then when that
action is completed, if there is another motion to consider a different tax rate we will
consider that separately.
Mayor Carpenter recognized Councilmember Scagliola who stated he thinks the
responsible approach is to question the validity of the question that is asked and was it
really the question that needs to be asked and was the question answered effectively. In
his view it wasn't. An example is the health care cost/estimate mentioned earlier where we
projected an increase of $140,000 that ultimately was not needed. He thought this budget
was padded in certain directions and he found one example where it was. He sticks with his
conservative approaches.
Mayor Carpenter recognized Councilmember Duke who wanted to clarify that he feels
Councilmember Scagliola is being consistent. His comment of the irresponsibleness earlier
this evening was addressed only at the action of voting for a budget that was approved and
then turning around and approving a tax rate that doesn't fund that budget.
Mr. Scagliola stated the process is fundamentally broken and it happens every year. By
first approving the budget you have essentially established that it is mandatory that you
establish the tax rate. The process should be reversed. There is flexibility built into the
budget. It takes into consideration there will be some ebb and flow in the market. These
are not fixed numbers.
Mayor Carpenter stated the budget numbers are inter - related, not absolutely related. A
budget gives staff direction; a not -to exceed amount unless they come back to council for
an adjustment. Then we move to a policy decision about what the tax rate should be set at
that funds a budget to a certain level. We don't know if we are going to cover that
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difference in the future or if we are going to have another recession in a quarter where the
budget is not viable after all, because we don't have the funds to fund the approved budget.
When we make a policy decision to set a different tax rate that does not match to the
budget we are not mandating the future but making an educated guess based on experience
and current conditions that we believe we will get there anyway. If we do not get there, we
will take some action to adjust it. The amount of tax revenue that will come into the city
based on what we set today as a tax rate cannot be perfectly envisioned. Small incremental
changes simply set a desired direction and do not set absolutes because the macro
economic conditions can change at any time. He is comfortable with 0.4974 or 0.4949 or
anywhere in between. The macro economic conditions are not going to conform to our
actions in these chambers. Therefore setting a tax rate is a statement of policy and intended
direction only.
Mayor Carpenter recognized Councilmember Fowler who asked if this budget does not
assume any new projects coming on line. Mr. Walters stated that is not correct. It assumes
a relatively stable rate of future growth for both our commercial and residential properties
at a 50 -50 ratio.
Mayor Carpenter recognized Councilmember Duke who moved, seconded by
Councilmember Edwards to reconsider Item 6, reaffirming the setting of the tax rate at
0.4949. The vote was 2 -3, with Councilmembers Scagliola and Mayor Pro -Tem John
voting yes and Councilmembers Fowler, Edwards and Duke voting no. Motion Failed.
Mayor Carpenter recognized Senior Budget/Finance Analyst James Walters who
recalculated the increase percentage for 0.4962, which was 2.2 %.
Mayor Carpenter recognized Councilmember Fowler who moved, seconded by
Councilmember Duke that property taxes be increased by the adoption of a tax rate of
0.4962, which is effectively a 2.2% increase in the tax rate. The vote was I -4, with
Councilmember Fowler voting yes, Mayor Pro -Tem John, Councilmembers Scagliola,
Edwards and Duke voting no. Motion Failed
Mayor Carpenter recognized Councilmember Edwards who moved, seconded by
Councilmember Duke that property taxes be increased by the adoption of a tax rate of
0.4974, which is effectively a 2.4% increase in the tax rate. The vote was 3 -2, with
Councilmember Fowler, Edwards and Duke voting yes, Mayor Pro -Tem John, and
Councilmember Scagliola voting no. Motion Carried
Roll Call Vote Confirmation
Mayor Carpenter recognized Deputy City Secretary Donna Schmoekel who recapped the votes
of items 1 through 7.
Requests and Announcements
8. Announcements by City Manager
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o Citizen Kudos
o Recognition of City employee actions
o New Departmental initiatives
Mayor Carpenter took time to thank Council for conducting the budget voting items
tonight in a very professional manner.
No further announcements were provided.
9. Requests by Mayor and Councilmembers that items be placed on a fixture City Council
agenda.
Mayor Carpenter recognized Councilmember Scagliola who stated he really did not need
this put on the agenda but in comparison of the things we talked about tonight, he would
like a clear definition of gambling, specifically Bunco, and does it fit into the category of
gambling. He has been approached by people and they want to know why they can't play
Bunco in the City. City Manager John Kessel offered up Lt. Michael Carey from the
Police Department to provide a report on that in two weeks.
Mayor Carpenter recognized Councilmember Duke who asked about the natatorium
update request he had made last week. Executive Director of Development Brian James
confirmed with City Secretary Brenda Dennis that this item is scheduled three weeks
from now for September 23, when Owner's Representative Phil Gaudreau will be in town
and available to answer questions and provide the most recent information.
10. Announcements by Mayor and Councilmembers
o City and community events attended and to be attended
o City Council Committee and Liaison Assignments (see assignments below)
o Continuing education events attended and to be attended
o Recognition of actions by City employees
o Recognition of actions by community volunteers
o Upcoming City Council agenda items
Mayor Carpenter recognized Councilmember Fowler who stated he attended the
following:
o Friday, August 29, Senior Center check presentation by Schertz Chamber Hyper
Group, 12 noon.
o Tuesday, September 2, Suzie's Thrift & Gifts Ribbon Cutting, 205 First Street
Councilmember Fowler stated his church, the Cibolo Valley Church on FM 1103, had a
back -to- school bash for the kids last Saturday, August 30, from 5 -8 p.m. There were two
Schertz police officers who came with some literature and gave away safety locks for
guns to the people attending the event. A lot of people were speaking with the police
officers and he was happy to see them there showing the good relationship our police
09 -2 -2014 Minutes Page -15 -
department has with our citizens in the community. Officers Jeffrey Krivaka and Chris
McWhirt were very cordial and spent time talking to the people there. He .appreciates
what our city staff does for the residents.
Mayor Carpenter recognized Councilmember Scagliola who stated he attended the
following:
o Thursday, August 28, Cibolo Valley Local Government Corporation meeting.
o Friday, August 29, Senior Center, two cheek(s) presentation by Schertz
Chamber Hyper Group.
o Tuesday, September 2, Suzie's Thrift & Gifts Ribbon Cutting, 205 First Street
Mayor Carpenter recognized Councilmember Edwards who wanted to thank the rest of
the councilmembers for sticking through it with the budget & tax rate debate. He also
mentioned that his son has been accepted to play on the starting roster for West Point
Military Academy for next year. He now has two sons attending West Point. Mayor
Carpenter stated that this was fantastic.
Adiournment
As there was no further business, the meeting was adjourned at 8:1
Michael R. Carpenter, Mayor
ES
a Dennis, City Secretary
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