08-04-2015 MinutesMINUTES
REGULAR MEETING
August 4, 2015
A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on
August 4, 2015, 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 Daryl John
Staff Present:
Executive Director Brian James
City Attorney Charles Zech
Call to Order
Mayor Pro -Tern Edwards
Councilmember Grumpy Azzoz
Councilmember Robin Thompson
City Manager John Kessel
Executive Director Bob Cantu
City Secretary Brenda Dennis
Mayor Carpenter called the meeting to order at 6:01 p.m.
Opening Prayer and Pledges of Allegiance to the Flags of the United States and the State of
Texas (Councilmember Grumpy Azzoz)
Councilmember Grumpy Azzoz provided the opening prayer followed by the Pledges of
Allegiance to the Flags of the United States and the State of Texas.
Mayor Carpenter took a moment to thank everyone for the thoughts and prayers they provided
his family due to the recent loss of his dad.
A. Appointment of the Mayor Pro -Tem - Consideration and /or action appointing the
next Mayor Pro -Tem for a term August 2015 to February 2016 (Councilmember
Fowler is next up to serve)
Mayor Carpenter stated that per the current Rules of Council regarding the appointment
of the Mayor Pro -Tem, it states that every six months the office of Mayor Pro-Tern
moves by seat number to the next Councilmember in line, as long as that Councilmember
has been elected to office and not appointed, and provided that they are willing to serve.
Mayor Carpenter stated that the next Councilmember in line is Councilmember
Thompson, but since he was not elected and appointed by Council the next in line is
Councilmember Fowler.
Council position Place 1 is next in line, seat currently being held by Councilmember Jim
Fowler who was elected to office. Councilmember Fowler has expressed an interest to
serve as the next Mayor Pro -Tem.
Mayor Carpenter recognized Councilmember Azzoz who moved, seconded by Mayor
Pro -Tem Edwards to appoint Councilmember Jim Fowler as the Mayor Pro -Tem for a
term to begin August 2015 until February 2016. The vote was unanimous with Mayor
8 -04 -2015 Minutes Page - i -
Pro -Tem Edwards, Councilmembers, Fowler, Azzoz, John and Thompson voting
for, no one voting no. Motion Passed
B. Mayor Pro -Tem Oath of Office — Oath of Office administered to Councilmember
Jim Fowler. (Mayor Carpenter to administer oath)
Mayor Carpenter provided the Oath of Office to Councilmember Jim Fowler. Mayor
Carpenter thanked Mayor Pro -Tem Edwards for serving. Mayor Pro -Tem Edwards stated
that it has been a pleasure serving as Mayor Pro -Tem. Newly Elected Mayor Pro -Tem
Fowler thanked the Council.
City Events and Announcements
• Announcements of upcoming City Events (B. James/D. Wait/B. Cantu)
Mayor Carpenter recognized Executive Director Brian James who provided the following
announcements:
• Wednesday, August 5, Community Budget Presentation Meeting, John A. Sippel
Elementary, 420 Fairlawn, 6:30 p.m.
• Thursday, August 6, Chamber After Hours Mixer — 5:30 p.m. Retama Park.
• Thursday, August 6, Community Budget Presentation Meeting, Ray D. Corbett Junior
High School, 12000 Ray Corbett Drive, 6:30 p.m.
• Friday, August 7, Schertz Senior Sock Hop, Schertz Civic Center, 7:00 p.m. to 11:00
p.m., live music, casino games, heavy hors d'oeuvres — cash bar, Tickets can be
purchased in advance at the Senior Center, Schertz Chamber of Commerce $25
each/$35 at the door. Wear Your Coolest 50's Attire, more information go to
schertzseniors.org.
• Thursday, August 13, Community Budget Presentation Meeting, Schertz United
Methodist Church, 3460 Roy Richard Drive, 6:30 p.m.
• Saturday, August 15, Schertz Idol Finale, Crosspoint Church, 5:00 p.m.
• Thursday, September 3, 2015, Schertz Civic Center 10:30 a.m. to 12:00 p.m.
Leadership seminar with guest speaker Bill Riggs. Chief Hanson has extended a
limited open invitation to this event. If you are interested RSVP directly to
admin@schertzchamber.org or call 210- 619 -1950.
ELECTION INFORMATION
The City of Schertz will be holding its General Election on November 3, 2015 for the
purpose of electing Council Members in Place 3, Place 4 and Place 5.
Any candidate desiring to have his or her name on the official ballot shall, no later than
August 24, 2015 by 5:00 p.m., file with the City Secretary an application in writing
requesting that his or her name be placed on the Official Ballot. The term of office for
said vacancies will expire November 2017.
Candidate packets are available in the City Secretary's office or can be found online at
www.schertz.com. A list of office hours for filing applications has been posted on the
8 -04 -2015 Minutes Page - 2 -
City's- bulletin board and a copy is also available on the City's website. Should you have
any questions, please contact the City Secretary's office at 210 - 619 -1030.
• Announcements and recognitions by City Manager (J. Kessel)
Mayor Carpenter recognized City Manager John Kessel who stated that he had received a
note from a citizen in Greenshire complimenting the Public Works Department on the
quick action of taking care of a tree that was overhanging over the sidewalk. He stated
that the call was made at 8:30 a.m. and within two hours the tree was trimmed and that
Public Works also followed up with the citizen letting them know that it had been taken
care of. The citizen singled out Dispatcher /Clerk Tiffany Danhof and Drainage Foreman
Kevin Anderson.
Employee Recognition
Recognition regarding Emergency Vehicle Training Certification. (D. Wait/Fleet
Department)
Mayor Carpenter stated that this item is being postponed until the August 11"' meeting.
Hearing of Residents
Mayor Carpenter recognized the following individuals who spoke:
• Mr. William Gignac, 173 Valley Oak Drive, who spoke regarding watering between 2
p.m. and 4:00 p.m. at the soccer fields on Maske Road. He spoke about the proposed
Bond ordinance and the need to communicate information about the FM roads and the
funding. Mr. Gignac also addressed his concern regarding a dope house at the end of
Valley Oaks Drive.
Workshop
• Presentation and discussion regarding the Class & Compensation Study prepared by
Evergreen Solutions. (J. Kessel/Evergreen Solutions)
Mayor Carpenter recognized Michael Misrahi with Evergreen Solutions who provided a
PowerPoint presentation with the following highlights addressing questions from
Council:
Study Process & Timeline
• Conducted kickoff meeting & finalized project work plan (2/25)
• Conducted Outreach and gathered relevant material from the City (3/9)
• Identified market peers and benchmarks (4/21)
• Employees completed JATs (Job Assessment Tool) and results were analyzed and
presented (5/28)
• Presented JAT and Market Salary Survey Presentation (6/3)
• Conducted external labor market survey and provided results (6/5)
• Compensation Philosophy Finalized (6/20)
8 -04 -2015 Minutes Page - 3 -
• Preliminary Solution File Submitted (6/25)
• Final Solution File submitted (7/20)
• Draft Final Report Submitted (7/20)
A
• 1 Presentation to Council & Employees (7/28 — 7/31)
nd
• 2 Presentation to Council (8/4)
Current Assessment
• City currently has one pay plan for all employees.
High number of employees at minimum of pay ranges - 26.5 percent and very
low at maximum: 2.5 percent.
• Salary compression issues may reside due to the high percentage of salaries (87.5
percent) below the midpoint of their respective pay grades.
• Results of the study showed the City is roughly 10.1 percent behind the market at
midpoint.
Compensation Philosophy:
• Summary of Council's Resolution:
— City will provide competitive and sustainable wages while balancing other
work related factors.
— Continue emphasis on pay for performance yet be mindful of fiscal
responsibility.
— Maintain internal equity and be transparent in reference to pay structure
and processes.
— Employee growth and engagement are primary drivers for retention.
Implementation Plan:
• Summary of Council's Resolution:
City will conduct a full study at regular intervals.
City will award merit pay increases based on annual performance
evaluations.
City will balance annual merit increases with Cost of Living Adjustments
when possible.
City will communicate all aspects of compensation process to employees.
Implementation First Steps:
• Summary of Council's Resolution:
St
— 1 Goal - City will adjust compensation of employees with lagging wages.
nd
— 2 Goal — City will provide a balance between compensation and
strategic staffing levels.
rd
— 3 Goal - City will ensure internal equity and maintain competitiveness
with external market.
th
— 4 Goal - City will provide meaningful and competitive benefits and
communicate compensation processes to employees.
Survey Methodology:
8 -04 -2015 Minutes Page - 4 -
® Collected Salary and /or Benefits Data from 21/26 agencies identified as targets.
® Peers chosen for similar size, general proximity and comparable economic
characteristics and some for EMS positions only.
• 70 of City's positions were surveyed as Benchmark Positions.
• Highest response rates were received for Animal Control Officer and Patrol
Officer with 15 responses.
PEER TARGETS
SALARY
BENEFITS
City of Austin
X
Per Position
City of Boerne
X
X
City of Cedar Park
X
X
City of Conroe
X
X
City of Georgetown
X
City of Kyle
X
City of New Braunfels
X
City of Pflugerville
X
X
City of Round Rock
X
X
City of San Antonio
X
City of San Marcos
X
X
City of Seguin
X
X
City of Selma
X
City of Temple
X
Comal County
X
Guadalupe County
X
Travis County
X
Washington County
X
X
New Braunfels Utilities
X
X
San Antonio Water
System
X
San Marcos Hays County
EMS
X
Survey Results:
• The City's data were compared to the 45th percentile market median and adjusted
for Cost of Living.
Current Assessment
Average Percent Difference
Range
Average Peer
Market Data Minimum Midpoint Maximum
Spread
Per Position
Overall Average -4.8% -9.0% -12.4%
44.4%
7.7
Outliers Removed* -6.4% -10.1% -13.3%
43.0%
8.9
*Note: Positions with fewer than five responses were removed.
Post Implementation
Market Data
Overall Average
Average Percent Difference
Minimum Midpoint Maximum
2.8% 4.9% 6.1%
8 -04 -2015 Minutes Page - 5 -
Survey Results
• In response to questions from Council on July 28th, Evergreen reviewed
alternative market sets, including Metrocom only and large peers removed.
Average Percent Difference
Market Data Minimum Midpoint Maximum
Metrocom Only -3.3% -5.9% -6.8%
Large Peers Removed -6.3% -10.2% -13.6%
• Metrocom organizations that responded to the survey included Selma, Guadalupe
County, and Comal County.
• Large peers removed from the second list of differentials were San Antonio,
Austin, and Travis County.
Slotting Methodology:
• Positions were grouped into Job Families, each with at least one benchmark
position.
• Job families received pay grade adjustments based on the average of its
benchmarks' market differential.
• Additional pay grade changes were made to account for necessary internal equity
changes identified by the JATs.
• Positions with retention and recruitment issues were addressed next to ensure
proper adjustment to meet the market.
• For any employee's that receive grade adjustment, they will maintain their current
step.
Implementation Costs:
• Costs include salary only, benefits not factored in.
• No employees receive a reduction in salary.
Immediate, one time implementation
Bring to current step, $1,705,398.62
Two different proposed four -year plans.
First Schedule aligns directly with compensation philosophy.
Second schedule emphasizes recruitment /retention issues.
8 -04 -2015 Minutes Page - 6 -
Proposed Pay Plan:
Plan Comparison
New plan increases number of steps and widens range spread to compensate long
term, high performing employees.
Recommended pay grade assignments resulted in more occupied grades.
Minimum of current pay grades remain the same; the midpoints and maximums
increased due to increased range spread.
Benefits Summary:
• Number of Health Plans offered — City offers two — higher than the peer average
of 1.7.
• City contributes a lower than average percentage towards the dependent portion
of premiums for employee -plus- dependent and employee - plus - family coverages,
however the deductibles paid are lower in Schertz.
• Sick and Vacation Time — Maximum accrual rates and amounts allowed to
rollover to next year are much higher in Schertz.
• The City's retirement package is similar to its peers; however it does not offer a
disability provision which over 75 percent of peers do.
• The City's offering of Certification Pay for Police, Fire, EMS and Public Works is
consistent with those that are offered by its peers.
Additional Recommendations:
Select positions /employees require reclassification based on JAT results.
That the City explore the feasibility of increasing its contribution rates to
dependent premiums so that its percentages of cost sharing are more similar to its
peer cities.
8 -04 -2015 Minutes Page - 7 -
Conduct localized salary survey of market peers at regular interval throughout the
year to keep its desired pace with the ever - changing market conditions.
Conduct a comprehensive classification and compensation study every three
years.
Employee Feedback:
th
• On July 28 , Evergreen's recommendations were made available to all employees
with full supporting documentation.
• Evergreen presented the results and fielded questions from roughly 200
employees over 11 meetings.
- Questions, concerns, and employee feedback was received in addition to
these presentations.
- Evergreen is in the process of reviewing this information and will make
any adjustments as found necessary.
• To achieve a current year implementation, final questions must be received by
end of day Wednesday, August 5 th
Summary:
• When compared to the competitors market data; Schertz currently lags their peers
by an average of 10.1 percent at the midpoint.
• After minor adjustments, the current structure of positions within the pay plan
addresses internal equity and employees are compensated fairly in comparison to
their placement on the job worth hierarchy.
• By implementing these strategies the City will enhance recruitment activities,
improve retention and improve employee morale.
Mayor Carpenter stated that tonight staff has shown two different proposed four -year
plans and as indicated earlier the first schedule aligns directly with compensation
philosophy and the second schedule emphasizes recruitment /retention issues. He would
like to hear from Council which schedule they prefer to be able to direct staff to prepare a
recommendation for Council to consider next week.
Mayor Carpenter provided background information on recent history regarding past
salary studies and how they were not successfully implemented.
Mr. Misrahi from Evergreen answered Council's questions regarding the methodology
and outcome of the study. Mr. Misrahi described how Evergreen applied the JAT,
market data, and compensation philosophy to develop their conclusions. Mr. Misrahi also
described the high level of employee engagement throughout the entire process.
City Manager John Kessel answered questions from Council regarding the process and
the goals of the study. He stated that the compensation philosophy calls for addressing
those that are furtherest out of market. Mr. Kessel, also in answer to Councilmember
Azzoz's question on how many employees have already left to pursue a job in another
city for higher pay, stated he believed it could be as high as 5 to 7 %.
8 -04 -2015 Minutes Page - 8 -
Mr. Kessel addressed the question from Councilmember Azzoz regarding the issue of it
being over 150 days before Council received the survey. Mr. Kessel explained that he
wanted to make sure that this process was open and transparent to employees and that
the employees had an opportunity to attend meetings and pose questions to Evergreen.
Mr. Kessel again stated that several meetings were held with the employees and
Evergreen; they now have questions from the employees that they are going to research
and provide an answer for, but believes that while many of the questions deal with the
methodology of the study there may be additional changes made.
Mayor Carpenter recognized Councilmember Edwards who stated that he prefers the first
schedule which aligns directly with the compensation philosophy and explained his
viewpoint.
Mayor Pro -Tem Fowler, Councilmembers Azzoz, John and Thompson stated they prefer
the second schedule that emphasizes recruitment and retention issues and they explained
their viewpoints. Mr. Edwards responded he was fine with either option if this was the
direction of Council. It was the consensus of Council to go with the second schedule and
move forward with the Evergreen study at the next Council meeting.
Workshop items continued:
• Presentation and discussion of the FY 2015 -16 Proposed Budget. (J. Kessel/ J. Walters)
Mayor Carpenter recognized Senior Budget Analyst James Walters who provided a
PowerPoint presentation regarding the FY 2015/16 Proposed budget with the following
highlighted information stating that this presentation goes with an agenda item that is
further down on the agenda:
BUDGET GOALS:
• Balanced Structurally
• Conservative and Responsible
• Follows Financial Policies
• Maintains Current Service Levels
• Focuses on Priorities
MANAGEMENT PRACTICES:
• Focus on priorities
- Maintain Appropriate Fund Balance
• Team Input
- Departments, Council, and Citizens
• Forward Looking
- Planning for Future Revenues & Expenses
- Consider Project schedules
-5 Year Forecast
-Long Term Debt Model
8 -04 -2015 Minutes Page - 9 -
KEY CITY 5 YEAR GOALS 2015:
• Building Repairs
• Fire Station 3
• Compensation Study
• Bond Election
• Strategic Staffing Levels
• Focus on Completing Existing Programs
• Maintain Reserves
BUDGET HIGHLIGHTS:
• Classification & Compensation Study
• Firefighter Ramp up Program
• Fire Apparatus (Debt Service)
• First year use of vehicle replacement fund
- Affecting General Services, Marshals, Streets, Parks and Animal Services
ALL FUNDS — REVENUES
General Fund
$26,568,977
Special Events Fund
131,800
PEG Fund
252,500
Water & Sewer Fund
19,211,727
EMS Fund
7,744,797
Drainage Fund
1,380,620
Hotel Tax
593,277
Park Fund
111,229
Tree Mitigation
40,250
Capital Recovery Water
3,477,141
Capital Recovery Sewer
3,643,712
I &S Fund
6,091,375
Other Funds
355,390
SEDC
3,528,562
GRAND TOTAL
$65,820,868
Sums: General Fund (36 %), Water & Sewer Fund (26 %), EMS Fund (11 %), I &S Fund
(8 %)
ALL FUNDS — Expenses
General Fund
$26,173,871
Special Events Fund
131,800
PEG Fund
252,500
Water & Sewer Fund
19,180,482
EMS Fund
7,471,850
Drainage Fund
1,221,653
Hotel Tax
259,330
Park Fund
34,800
Tree Mitigation
27,000
8 -04 -2015 Minutes Page - 10 -
Capital Recovery Water
3,477,141
Capital Recovery Sewer
3,343,712
I &S Fund
5,821,418
Other Funds
322,990
SEDC
2,659,502
GRAND TOTAL
$64,008,742
Sums: General Fund (37 %), W &S Fund (27 %), EMS Fund 11 %) I &S Fund (8 %)
FUND BALANCE/EQUITY
FY 2015 -16
Estimated Beginning Balance
Net Change
Budgeted Ending Balance
General Fund
$6,911,098
$154,018
i $7,065,116
Special Events Fund
73,803
493,463
733,023
- 10,000
63,803
347,963
1,002,980
PEG Fund
I&S Fund
- 145,500
jj 269,957
Water & Sewer Fund
3,381,415
- 822,367
+ 2,559,048
Capital Recovery -Water
5,172,348
- 2,550,541
2,621,807
Capital Recovery-Sewer
3,286,501
- 3,077,712
208,789
Drainage Fund
1,132,963
- 54,953
1,078,010
EMS Fund
i 975,653
272,726
1,248,379
SEDC
8,653,932
869,060
9,522,992
Hotel Tax Fund
783,780
329,872
1,113,652
' 287,387
Park Fund
210,958
76,429
Tree Mitigation
459,533
13,250
472,783
Library Fund
63,071
-4,960 ;
- _ - 58,111
Historical Committee
' 9,567
0 9,567 R
32,360 ! 143,697
Parks & Rec Foundation i
111,337
2015 Property Values
2014 Adjusted Taxable value
2015 Equivalent Taxable value
2015 New Improvements
2015 Adjusted Taxable Value
Difference
Current Tag Rate
Tax Rate
Current
M &O
$0.3164
I &S
$0.1810
Total
$0.4974
8 -04 -2015 Minutes Page - 11 -
$2,748,857,464
$2,932,054,997
+ $97,748,649
$3,029,803,646
$ 280,956,182
To operate general City services
Pays for the City's Debt
The combined tax rate seen on the tax bill
Tax Rate
Effective: The tax rate which, on average, will keep the tax bill the
same as in 2013.
Current: The rate currently adopted by the City.
Proposed Max: The maximum rate set at which the final adopted rate
cannot exceed.
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.
PROPOSED TAX RATE
Effective: $0.4664
Current: $0.4974
Proposed Max: $0.4911 (Proposed budget is balanced at this rate)
Rollback: $0.4912
$0.01 is equal to $302,980 revenue or $18.53 on the average home.
Mr. Walters stated that tonight we will be asking Council to take a record vote on setting
the Preliminary Maximum tax rate for FY 2015 -16 at $0.4911, which the proposed
budget is balanced at this rate.
PROPOSED TAX RATE BREAKDOWN
Tax Rate Proposed
M &O $0.3159 To operate general City services
I &S $0.1752 Pays for the City's debt
Total $0.4911 The combined tax rate seen on the tax bill
FY 2015 -16 CITY TAX RATE
At $0.4911
2014 Tax Bill
= $866.47 Avg Home Value $174,200
2015 Tax Bill
= $909.52 Avg Home Value $185,200
Increase =
$ 43.05
2014 Tax Bill
= $497.40 Home Value of $100,000
2015 Tax Bill
= $491.10 Home Value of $100,000
Decrease =
$ -6.30
Mr. Walters provided the chart information below on the history of the tax rates
regarding the cities M &O and I &S:
8 -04 -2015 Minutes Page - 12 -
HISTORIC TAX RATES — M &O
0.6000
0.5000
0.4000
0.3000
0.2000
0.1000
0.0000
M &O M &O M &O M &O M &O M &O M &O M &O M &O
A )eon ., .,-- , n �aa-z 0.2993 0._3 .64 0.3 ,59
Ol� OHO A 0% OI NO �� ��' Nn N� Nh
IV IV �O �O �O TO ep �O �O TO IO
HISTORIC TAX RATES — I &S
0.2500
0.2000 -
0.1500 -
0.1000 -
0.0500 -
0.0000
T 4 Iry 0-1810-1752
0.15 0,15 0,15 0, 1 5i
I&S 0.0972
1
Oh Oro 01 % O°j SO �N
�O �O
8 -04 -2015 Minutes Page - 13 -
HISTORIC TAX RATES — TOTAL
0.6000
0.5000
0.4000
0.3000
0.2000
0.1000
Ob e HO 01 0% Oq KO N O N N N
e f TO TO TO TO rp �O ep rp rp
GENERAL FUND REVENUES
Property Taxes
$10,252,766
Sales Tax
7,036,724
Fees
2,486,122
Franchises
2,221,153
Fund Transfers
1,921,266
Permits
1,249,839
Inter - Jurisdictional
783,847
Miscellaneous
462,000
Licenses
84,160
Other Taxes
40,100
Library Fines
31,000
Total Revenues $26,568,977
Sums: Property Tax 39 %, Sales Tax 27 %, Fees 9 %, Franchise 8 %, Fund Transfers 7%
GENERAL FUND Expenses
General Government $ 7,701,147
Internal Service 3,751,897
8 -04 -2015 Minutes Page - 14 -
Police
5,815,955
Fire Rescue
3,545,964
Inspections
669,917
Marshal Service
712,784
Streets
1,174,687
Parks & Recreation
1,348,214
Library
877,288
Animal Services
576,018
Total Revenues $26,173,871
Sums: General Government 29 %, Police 22 %, Internal Service 14 %, Fire Rescue 14 %.
General Fund
Revenues
$26,568,977
Expenditures
26,173, 871
Increase of Fund Balance
395,106
Beginning Fund Balance
6,911,098
Use of Vehicle Replacement
- 241,088
Ending Fund Balance
7,065,116
25% Reserve Policy
$6,501,138
M &O $0.3159
Total Change in Expenditures
$150,000 New Employees
$430,400 Large Expanded Programs (over 10,000)
$600,000 Act on Compensation Study
$279,600 Continue Existing Staffing Levels & Programs
$1,460,000 Total Increase
$ 389,000 - Reserve Funding
M &O $0.3159
New Personnel
$150,000 3 Firefighters — Ramp Up Program Station #3
$150,000 Total New Employees
M &O $0.3159
Large Expanded Programs
$260,400 Vehicle Replacement
$150,000 Replacement Remaining SCBAs
$ 50,000 Pool Liner Replacement
$ 20,000 Expanded Election
$430,400 Total Large Expanded Programs
M &O $0.3159
Reserve Funding
$169,000 Vehicle Replacement
8 -04 -2015 Minutes Page -15 -
$ 25,000
A/C Replacement
$ 25,000
Server Replacement
$ 35,000
P &Z Software
$ 35,000
Phone System Replacement
$389,000
Total Reserve Funding
Mr. Walters provided the following graph regarding the history of the cities sales tax:
Historic Sales Tax
Sales Tax - General Fund
$90U,000
9%
-7%
$s0o,000
$700,000
-9%
$600,000
3%
1 %
-8%
$500,000
$400,000
$300,000
$200,000
$100,000
$-
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
X2014 -15
495,499
638,904
505,026
421,339
795,382
450,965
494,050
723,404
465,966
496,241
+2013 -14
481,247
657.271
554$78
416,261
728,443
487,933
541,476
1 781,057
692,446
448,577
680,332
547,431
x-2012 -13
439,433
575,941
474,246
424,191
632,716
415,829
405,378
660,648
544,675
563,636
650,124
487,170
X2011 -12
428,995
463,636
339,192
415,822
461,400
365,083
347,395
535,930
398,080
408851
575,414
440,250
- X2010 -11
339,709
332264
347,605
353,229
470,399
324,575
283,300
425,848
408,664
342,513
453,063
385230
�- 2009 -10
300,384
338,514
281259
288,350
477,063
293,178
273,874
1 366,704
350,314
324,169
419,127
402,804
Sales Tax
General Fund
FY2013 -14
Actual
$7,032,044
-1%
2015 - 5 Year Forecast
8 -04 -2015 Minutes Page -16 -
FY2014 -15
Estimate
$6,961,724
+1%
FY2015 -16
Budget
$7,036,724
FY2015
FY2016
FY2017
FY2018
FY2019
FY2O20
Revenue $25,297,719
$26,568,977
$27,576,055
$28,605,522
$29,644,059
$30,731,548
Expense $(24,668,799)
$ (26,173,871)
$(27,549,143)
$(28,547,611)
$(29,793,283)
$(30,529,331)
Reserve $628,920 $26,911
Funding $154,018 $57,912 $(149,224) $202,217
M &O Fund $6,911,098 $7,065,116 $7,092,028 $7,149,939 $7,000,716 $7,202,933
Balance
25% Goal $6,077,050 $6,501,138 $6,868,536 $7,136,903 $7,448,321 $7,632,333
Over /Under $(447,605) $(429,400)
5 Year Model Input
• Expenses
- Operational costs are grown at rates based on a prior 3 years average
- Includes following programs:
♦ Funding for the SCBA's replacement
♦ Aquatic Center Operations
♦ 12 Firefighters for new Station
♦ Estimates on the Compensation Study Action
♦ Continued Merit program throughout all years
♦ 2 additional employees (not including Firefighters) each year
Long Term Debt Model
• For I &S Fund
• 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
- Ensures fund balance never falls below a certain level
- Includes bond elections every 5 years
Five Year Summary — I &S Fund
• At I &S Rate of $0.1752:
- Includes $15 million bond package from elections in 2015
- Includes approximately $10 million additional in CO Bonds for Infrastructure
-The lowest fund balance is $149,811 in FY 2017 -18
-Rate could fluctuate based on the actual growth of the tax base and the results
from the bond election but at a reduced rate due to the model
Graph of Debt Service
8 -04 -2015 Minutes Page - 17 -
I $8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
General Fund Debt Service
2016 2017 2018 2019 2020 2021 2022 2023 2024
• 2nd Package Ptl
• 1st Package Pt2
• 1st Package Pt1
• Fire Engine
• Current Obligations
Target Tag Rate
Tax Rate
Current Recommended Maximum
M &O
$0.3164 $0.3159
I &S
$0.1810 $0.1752
Total
$0.4974 $0.4911
Proposed Public Hearing Dates:
• August 18, 2015
• August 25, 2015
Budget Calendar FY 2015 -16
July 31
File with City Secretary
August 4
Budget Workshop, vote to place a preliminary tax rate on the
agenda, and schedule public hearings
August 5, 2015
First Community Budget Presentation— Sippel Elementary School
August 6, 2015
Second Community Budget Presentation — Corbett Jr. High School
August 11, 2015
Budget Workshop
August 13, 2015
Third Community Budget Presentation — Schertz United Methodist
Church
August 18, 2015
First Public Hearing
August 25, 2015
Second Public Hearing, First Vote
8 -04 -2015 Minutes
Page -18 -
September 1, 2015 Second Vote
October 1, 2014 Budget goes into effect
Mayor Carpenter recognized Senior Budget Analyst James Walters who stated a
governing body must take a Record Vote to place a proposal to adopt the rate on the
agenda of a future meeting as an action item if the preliminary tax rate exceeds the
Effective Tax Rate. The proposal must specify the desired rate.
After the Record Vote, the governing body must then schedule two (2) Public hearings at
which the proposed tax rate will be considered. The City will publish the notice in the
newspaper which will contain information based upon a preliminary tax rate to be
determined by the City Council and the dates of the public hearings, if necessary.
Further, another record vote will have to be taken on the proposed rate prior to final
adoption of the tax rate ordinance.
Staff is recommending a preliminary maximum property tax rate of $0.4911 per $100
valuation. The proposed maximum property tax rate maintains quality services to
residents and businesses, provides for public safety, adds best management processes for
our growing community, and replenishes the General Fund reserve. The current property
tax rate is $0.4974 per $100 valuation. The proposed maximum tax rate will decrease to
$0.4911 per $100 valuation. The M &O portion of the property tax rate will decrease to
$0.3159 per $100 valuation. The I &S portion will decrease at $0.1752 per $100
valuation. The rollback rate is $0.4912 per $100 valuation.
Consent Agenda Items
Mayor Carpenter stated that staff has requested agenda item 4 be removed from the consent
agenda and be presented separately.
The Consent Agenda is considered self - explanatory and will be enacted by the Council with one
motion. There will be no separate discussion of these items unless they are removed from the
Consent Agenda upon the request of the Mayor or a Councilmember.
1. Minutes - Consideration and/or action regarding the approval of the minutes of the
Regular Meeting of July 28, 2015. (J. Kessel /B. Dennis)
2. Ordinance No. 15 -E -22 — Consideration and /or action approving an Ordinance calling a
General and Special Election to be held in the City of Schertz on November 3, 2015 for
the purpose of electing Councilmembers for Places 3, 4 and 5 and calling a Home Rule
Charter Amendment Election to be held in the City on such date; making provision for
the conduct of the election; authorizing contracts with the Elections Administrators of
Bexar and Guadalupe Counties to conduct this election; authorizing the election to be
held as a Joint Election. Final Reading (B. Demos /C. Zech/Council)
The following was read into record:
ORDINANCE NO. 15 -E -22
8 -04 -2015 Minutes Page - 19 -
AN ORDINANCE CALLING A GENERAL AND SPECIAL ELECTION TO BE
HELD IN THE CITY OF SCHERTZ ON NOVEMBER 3, 2015 FOR THE
PURPOSE OF ELECTING COUNCILMEMBERS FOR PLACES 3,4 AND 5 AND
CALLING A HOME RULE CHARTER AMENDMENT ELECTION TO BE
HELD IN THE CITY ON SUCH DATE; MAKING PROVISION FOR THE
CONDUCT OF THE ELECTION; AUTHORIZING CONTRACTS WITH THE
ELECTION ADMINISTRATORS OF BEXAR AND GUADALUPE COUNTIES
TO CONDUCT THIS ELECTION; AUTHORIZING THE ELECTION TO BE
HELD AS A JOINT ELECTION;AND RESOLVING OTHER MATTERS
INCIDENT AND RELATED TO SUCH ELECTION AND DECLARING AN
EFFECTIVE DATE
3. Ordinance No. 15 -E -23 — Consideration and /or action approving an Ordinance calling a
Bond Election to be held in the City of Schertz, Texas; making provision for the conduct
of a Joint election; and resolving other matters incident and related to such election.
Final Reading (B. Dennis /J. Kuhn/Council)
The following was read into record:
ORDINANCE NO. 15 -E -23
AN ORDINANCE CALLING A BOND ELECTION TO BE HELD IN THE CITY
OF SCHERTZ, TEXAS; MAKING PROVISION FOR THE CONDUCT OF A
JOINT ELECTION; AND RESOLVING OTHER MATTERS INCIDENT AND
RELATED TO SUCH ELECTION
Mayor Carpenter recognized Mayor Pro -Tem Fowler who moved, seconded by
Councilmember Edwards to approve consent agenda items 1 -3. The vote was
unanimous with Mayor Pro -Tem Fowler, Councilmembers Azzoz, John, Edwards
and Thompson voting for and no one voting no. Motion passed.
Discussion and Action items
4. Ordinance No. 15 -C -21 — Consideration and /or action approving an Ordinance
amending the Schertz Code of Ordinances, Chapter 30, Fire Prevention and Protection,
by repealing existing International Codes and adopting new International Codes and
adopting the revised Schertz Code of Ordinance, Chapter 30, Fire Prevention and
Protection. Final Reading D. Wait /D. Covington/J. Perry)
The following was read into record:
ORDINANCE NO. 15 -C -21
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS AMENDING THE CODE OF ORDINANCES OF THE CITY OF
SCHERTZ CHAPTER 30, FIRE PREVENTION AND PROTECTION BY
AMENDING EXISTING INTERNATIONAL CODES AND ADOPTING NEW
INTERNATIONAL CODES.
8 -04 -2015 Minutes Page - 20 -
Mayor Carpenter recognized Fire Marshal John Perry who stated among the local
amendments to the proposed International Fire Codes (IFC), 2012 Edition is a change in
the definition to "Change of Occupancy ". The IFC defines a change of occupancy as a
"change in the purpose or level of activity to include change of ownership ^
tee, within a building that involves a change in the application of the requirements of
this code." (Underlined section is the wording added by the local amendment).
Staff recommends approval of final reading with the change indicated above.
Mayor Carpenter recognized Councilmember Azzoz who moved, seconded by
Councilmember John to approve Ordinance no. 15 -C -21 final reading. The vote was
unanimous with Mayor Pro -Tem Fowler, Councilmembers Azzoz, John, Edwards
and Thompson voting for and no on voting no. Motion passed.
Resolution No. 15 -R -70 Property Tag Rate — Consideration and/or action approving a
Resolution taking a Record Vote on setting the Preliminary Maximum Tax Rate for FY
2015 -16 and Scheduling of Public Hearings on the proposed tax rate. (J. Kessel /J.
Walters)
The following was read into record:
RESOLUTION NO. 15 -R -70
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS AUTHORIZING A PRELIMINARY MAXIMUM TAX RATE FOR
FISCAL YEAR 2015 -16 AND SETTING PUBLIC HEARING DATES, AND
OTHER MATTERS IN CONNECTION THEREWITH
Mayor Carpenter recognized Senior Budget Analyst James Walters who stated staff is
recommending a preliminary maximum property tax rate of $0.4911 per $100 valuation.
The proposed maximum property tax rate maintains quality services to residents and
businesses, provides for public safety, adds best management processes for our growing
community, and replenishes the General Fund reserve. The current property tax rate is
$0.4974 per $100 valuation. The proposed maximum tax rate will decrease to $0.4911
per $100 valuation. The M &O portion of the property tax rate will decrease to $0.3159
per $100 valuation. The I &S portion will decrease at $0.1752 per $100 valuation. The
rollback rate is $0.4912 per $100 valuation.
Staff recommends the Council take a Record Vote on the preliminary maximum tax rate
of $0.4911 per $100 valuation and schedule two Public Hearings for August 18, 2015 and
August 25, 2015 for the Preliminary Tax Rate and the Proposed FY 2015 -16 Budget.
Final adoption vote is scheduled for September 1, 2015.
Mayor Carpenter recognized Councilmember Azzoz who moved, seconded by
Councilmember John to approve Resolution No. 15 -R -70 setting the preliminary
maximum property tax rate of $0.4911 per $100 valuation and schedule two Public
Hearings for August 18, 2015 and August 25, 2015 for the Preliminary Tax Rate and the
Proposed FY 2015 -16 Budget with final adoption vote scheduled for September 1, 2015.
8 -04 -2015 Minutes Page - 21 -
The vote was unanimous with Mayor Pro -Tem Fowler, Councilmembers Azzoz,
John, Edwards and Thompson voting for and no one voting no. Motion passed.
6. Resolution No. 15 -R -67 - Schertz Seguin Local Government Corporation (SSLGC)
Fiscal Year 2015 -16 Annual Budget SSLGC Resolution # SSLGC #SSLGC R -15 -06 -
Consideration and/or action approving the Schertz Seguin Local Government
Corporation (SSLGC) FY 2015 -16 Budget. (D. Wait/S. Willoughby /A. Cockerell)
The following was read into record:
RESOLUTION NO. 15 -R -67
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS APPROVING THE SCHERTZ/SEGUIN LOCAL GOVERNMENT
CORPORATION FISCAL YEAR 2015 -16 ANNUAL BUDGET, AND OTHER
MATTERS IN CONNECTION THEREWITH
Mayor Carpenter recognized SSLGC General Manager Allen Cockerell who said a
proposed annual budget for the period commencing October 1, 2015 and ending
September 30, 2016 has been prepared by the Schertz/Seguin Local Government
Corporation (SSLGC) General Manager and Staff. It is the desire of SSLGC to have this
budget for the FY2015 -16 approved by the City of Schertz City Council.
The City of Schertz is a member of the Schertz/Seguin Local Government Corporation.
It is through the SSLGC that the City provides water to it citizens and businesses.
Approval of the budget will ensure that the citizens and businesses of Schertz will
continue to receive this vital service. Staff recommends approval of the Resolution
approving the SSLGC FY2015 -16 Annual Budget. There is no Fiscal Impact as this
budget is based on SSLGC revenue.
Mayor Carpenter recognized Councilmember Edwards who moved, seconded by Mayor
Pro -Tem Fowler to approve Resolution No. 15 -R -67. The vote was unanimous with
Mayor Pro-Tem. Fowler, Councilmembers Azzoz, John, Edwards and Thompson
voting for and no one voting no. Motion passed.
7. Resolution No. 15 -R -68 - Schertz Seguin Local Government Corporation (SSLGC)
Fiscal Year 2015 -16 Water Rates SSLGC Resolution # SSLGC #SSLGC R -15 -07 -
Consideration and/or action approving the Schertz Seguin Local Government
Corporation (SSLGC) FY 2015 -16 Water rates. (D. Wait /S. Willoughby /A. Cockerell)
The following was read into record:
RESOLUTION NO. 15 -R -68
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS APPROVING THE SCHERTZ /SEGUIN LOCAL GOVERNMENT
CORPORATION FISCAL YEAR 2015 -16 WATER RATES, AND OTHER
MATTERS IN CONNECTION THEREWITH
8 -04 -2015 Minutes Page - 22 -
Mayor Carpenter recognized SSLGC General Manager Allen Cockerell who said
proposed water rates for the period commencing October 1, 2015 and ending September
30, 2016 have been prepared by the Schertz /Seguin Local Government Corporation
(SSLGC). It is the desire of SSLGC to have these water rates for FY 2015 -16 approved
by the City of Schertz City Council. The City of Schertz is a member of the
Schertz /Seguin Local Government Corporation. Mr. Cockerell stated these are the rates
SSLGC charges the City. Next week there is a presentation from Dan Jackson,
Economist.com on the rates the city will charge residents and businesses. It is through the
SSLGC that the City provides water to it citizens and businesses. Approval of the water
rates will ensure that the citizens and businesses of Schertz will continue to receive this
vital service. The fiscal impact is as follows: 1. O & M Rates did not change, 2. Debt
Service Increase due to the reduction in (SAWS) T -2 water purchase which will be offset
by the use of SSLGC Impact Fee Fund. Staff recommends approval of the Resolution
approving the SSLGC FY 2015 -16 water rates.
Mayor Carpenter recognized Councilmember Azzoz who moved, seconded by
Councilmember Edwards to approve Resolution No. 15 -R -68. The vote was unanimous
with Mayor Pro -Tem Fowler, Councilmembers Azzoz, John, Edwards and
Thompson voting for and no one voting no. Motion passed.
8. Resolution No. 15 -R -69 — Consideration and/or action approving a Resolution
authorizing a Management Services Agreement with Schertz Seguin Local Government
Corporation (SSLGC). (D. Wait /S. Willoughby /A. Cockerell)
The following was read into record:
RESOLUTION NO. 15 -R -69
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
GOVERNMENT CORPORATION WITH SCHERTZ /SEGUIN LOCAL
GOVERNMENT CORPORATION, AND OTHER MATTERS IN CONNECTION
THEREWITH
Mayor Carpenter recognized SSLGC General Manager Allen Cockerell who said the
Schertz /Seguin Local Government Corporation (SSLGC) Management Services
Agreement with the City of Schertz will be expiring September 30, 2015. It is the desire
of SSLGC to renew this agreement for FY2015 -16. There have been no substantive
changes made to this agreement. The goal is to extend the Management Services
Agreement with SSLGC and continue our partnership as well as provide the best quality
water to our citizens and businesses. Staff recommends Council approve the resolution
authorizing the renewal of the Management Services Agreement with the City of Schertz
and SSLGC. He stated this agreement takes effective October 1, 2015 and continues
through September 30, 2016.
Mayor Carpenter recognized Councilmember Edwards who moved, seconded by Mayor
Pro -Tem Fowler to approve Resolution No. 15 -R -69. The vote was unanimous with
8 -04 -2015 Minutes Page - 23 -
Mayor Pro -Tem Fowler, Councilmembers Azzoz, John, Edwards and Thompson
voting for and no one voting no. Motion passed.
9. Ordinance No. 15 -S -24 — Conduct a public hearing and consideration and /or action
PH approving an Ordinance amending Part III, Schertz Code of Ordinances, Unified
Development Code (UDC), Article 9 Section 21.9.5 Exterior Construction and Design
Standards. First Reading (B. James /L. Wood/B. Cox)
The following was read into record:
ORDINANCE NO. 15 -S -24
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS AMENDING PART III, SCHERTZ CODE OF ORDINANCES, THE
UNIFIED DEVELOPMENT CODE (UDC) ARTICLE 9 SITE DESIGN
STANDARDS, SPECIFICALLY SECTION 21.9.5 EXTERIOR CONSTRUCTION
AND DESIGN STANDARDS; REPEALING ALL ORDINANCES OR PARTS OF
ORDINANCES IN CONFLICT WITH THIS ORDINANCE; PROVIDING A
SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE
Mayor Carpenter recognized Executive Director Brian James who introduced this item
stating the UDC Sec. 21.9.5 Exterior Construction and Design Standards was identified
as a section in need of revision. A number of developers have had to seek approval from
the Board of Adjustment for waivers or variances to the code.
The architectural standards provided may work for a small retail building but will not
work for a large industrial building or office. In order to solicit stakeholder opinions and
assist with the revision to UDC Sec. 21.9.5 Exterior Construction and Design Standards,
Planning Staff created a focus group. The Design Standards Focus Group was comprised
of various architects, engineers, developers, and City Boards including Board of
Adjustment, Schertz Economic Development Board, and Planning and Zoning
Commission. The goal of the changes are to create an ordinance that is easy to understand
and interpret, allows for options, and is based on building use. There are five building use
categories; Industrial, Commercial, Office /Public, Multi - Family, and Single - Family
Residential. This allows for specific standards to be appropriately applied to different
building types. Generally, the standards regulate building materials, windows and
articulation. Mr. James showed comparisons of the existing code versus the proposed
code. Mr. James focused specifically on the criteria for horizontal articulation.
Mayor Carpenter opened the public hearing and recognized the following:
® Robert Brockman, 1000 Elbel Road, who addressed the Council regarding his
Verde Enterprise Business Park setbacks.
As no one else spoke, Mayor Carpenter closed the public hearing for Council comments
and questions.
Mayor Carpenter recognized Councilmember Azzoz who moved, seconded by
Councilmember Edwards to approve Ordinance No. 15 -S -24 on first reading. The vote
8 -04 -2015 Minutes Page - 24 -
was unanimous with Mayor Pro -Tem Fowler, Councilmembers AZZoz, John,
Edwards and Thompson voting for and no one voting no. Motion passed.
Roll Call Vote Confirmation
City Secretary Brenda Dennis who provided the roll call vote information for agenda items 1
through 9.
Requests and Announcements
10. Announcements by City Manager
• Citizen Kudos
• Recognition of City employee actions
• New Departmental initiatives
No further announcements were provided.
11. Requests by Mayor and Councilmembers that items be placed on a future City
Council agenda.
Mayor Carpenter recognized Councilmember Edwards who requested Council discuss
next week the "Meetings on the Move" meetings possible dates and locations.
Mayor Carpenter recognized Councilmember Thompson who requested Council discuss
the possibility of moving to three (3) meetings per month on the next agenda.
Mayor Carpenter recognized Councilmember Azzoz who requested a presentation and
discussion regarding interaction with other Cities. Mayor Carpenter stated that we can
also include in the discussion dialogue regarding continued regional collaboration.
Mayor Carpenter stated that we could have this item for discussion in three (3) weeks and
that he will also provide information regarding the collaborations they have with the
Northeast Partnership For Economic Development group as well as the Guadalupe
Mayor's Association.
12. Announcements by Mayor and Councilmembers
• City and community events attended and to be attended
• City Council Committee and Liaison Assignments (see assignments below)
• Continuing education events attended and to be attended
• Recognition of actions by City employees
• Recognition of actions by community volunteers
• Upcoming City Council agenda items
Mayor Carpenter recognized Mayor Pro-Tern Fowler who stated he attended the
Ribbon Cutting on Friday, July 31, 2015, at Painting with a Twist in the Forum.
8 -04 -2015 Minutes Page - 25 -
Mayor Carpenter recognized Councilmember Edwards who stated that the Cibolo
Valley Local Government Corporation is moving along and that recently they
received a letter from State Representative John Kuempel stating that he is in favor of
Region L including a 2016 project by CVLGC for the development of new water
resources into its' Initially Prepared Plans in order to ensure that resources are
properly planned for in the future.
Mayor Carpenter recognized Councilmember Thompson who thanked Police Chief
Hansen for extending an invitation to attend a leadership training class with Billy
Riggs which will be held on September 3, 2015 at 10:30 a.m., Schertz Civic Center
and that as of today they have had 28 individuals to RSVP.
Mayor Carpenter stated that he wanted to thank the Council on making a 10 year
promise to the employees to address salaries and compensation. Mayor Carpenter
also wanted to congratulate the Council on the fact that you can add services, and still
lower taxes.
Adjournment
Meeting was adjourned at 8:52 p.m.
Michael R. Carpenter, Mayor
ST:
a Dennis, 1
8 -04 -2015 Minutes Page - 26 -