03-22-2016 Agenda with backupCity Council Agenda
REGULAR SESSION CITY COUNCIL
March 22,2016,6:00 P.M.
HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS
1400 SCHERTZ PARKWAY BUILDING #4
SCHERTZ, TEXAS 78154
COMMUNITY.SERVICE.OPPORTUNITY
Policy Values
Safe Community
Essential Services
High Quality of Life
Attractive Community
Economic Prosperity
Fiscally Sustainable
Call to Order — City Council Regular Session
Opening Prayer (Councilmember Thompson)
Pledges of Allegiance to the Flags of the United States and State of Texas.
Girl Scout Troop 4834 to provide.
City Events and Announcements
• Announcements of upcoming City Events (B. James/D. Wait /B. Cantu)
• Announcements and recognitions by City Manager (J. Kessel)
Hearing of Residents
This time is set aside for any person who wishes to address the City Council. Each person should
fill out the speaker's register prior to the meeting. Presentations should be limited to no more than
3 minutes.
All remarks shall be addressed to the Council as a body, and not to any individual member
thereof. Any person making personal, impertinent, or slanderous remarks while addressing the
Council may be requested to leave the meeting.
Discussion by the Council of any item not on the agenda shall be limited to statements of specific
factual information given in response to any inquiry, a recitation of existing policy in response to an
inquiry, and /or a proposal to place the item on a future agenda. The presiding officer, during the
Hearing of Residents portion of the agenda, will call on those persons who have signed up to speak
in the order they have registered.
03 -22 -2016 Council Agenda
Workshop
• Discussion and possible action regarding the City Council Rules of Conduct and Procedure
and the City Council Code of Ethics. (Item requested by Councilmember Fowler)
• Discussion and possible action regarding the Woman Hollering Creek Project. (B. James /K.
Woodlee /C. Raleigh)
Discussion and Action Items
1. Minutes - Consideration and/or action regarding the approval of the minutes of the Regular
Meeting of March 8, 2016. (J. Kessel/B. Dennis)
2. Resolution No. 16 -R -26 - CAFR FY 2014 -15 — Presentation and consideration and/or
action approving a Resolution authorizing approval of the Comprehensive Annual Financial
Report (CAFR) for Fiscal Year 2014 -15. Q. Kessel /J. Santoya /J. Walters/D. Fraser)
3. Resolution No. 16 -R -27 — Consideration and/or action approving a Resolution authorizing
the approval of an Agreement with Thos. S. Bryne, LTD for replacement of windows and
glazing systems at the Recreation Center. (J. Kessel /P. Gaudreau)
4. Resolution No. 16 -R -28 — Consideration and/or action approving a Resolution authorizing a
contract with The Davey Tree Expert Company for tree pruning services. (B. James /C. Van
Zandt)
5. Resolution No. 16 -R -29 — Consideration and/or action approving a Resolution authorizing a
contract with the Aquatic Renovation and Service Company for replacement of the Pickrell
Park Pool Liner. (B. James /C. Van Zandt)
6. Ordinance No. 16 -T -05 — Presentation and consideration and/or action approving an
Ordinance authorizing a budget Adjustment to the Schertz Emergency Medical Services
Fund to adjust appropriate accounts after receipt of a grant. First Reading (D. Wait /J.
Mabbitt /K. Burnam)
Roll Call Vote Confirmation
uests and Announcements
7. Announcements by City Manager
• Citizen Kudos
• Recognition of City employee actions
• New Departmental initiatives
03 -22 -2016 City Council Agenda Page - 2 -
8. Future Agenda Item Request for City Council: This is an opportunity for City Council
members to request that items be placed on a future agenda. No discussion of the merits of
the item may be taken at this time. Should a Council Member oppose placement of the
requested item on a future agenda, the Mayor, without allowing discussion, shall ask for the
consensus of the other City Council members to place or not place the item on a future
agenda.
9. 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
Adiournment
CERTIFICATION
I, BRENDA DENNIS, CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS, DO HEREBY
CERTIFY THAT THE ABOVE AGENDA WAS PREPARED AND POSTED ON THE OFFICIAL
BULLETIN BOARDS ON THIS THE 18th DAY OF MARCH, 2016 AT 9:00 A.M. WHICH IS A
PLACE READILY ACCESSIBLE TO THE PUBLIC AT ALL TIMES AND THAT SAID NOTICE
WAS POSTED IN ACCORDANCE WITH CHAPTER 551, TEXAS GOVERNMENT CODE.
grevop Dev"vU,'s
Orenda Dennis, City Secreta
I CERTIFY THAT THE ATTACHED NOTICE AND AGENDA OF ITEMS TO BE
CONSIDERED BY THE CITY COUNCIL WAS REMOVED BY ME FROM THE
OFFICIAL BULLETIN BOARD ON DAY OF 2016.
Title:
This facility is accessible in accordance with the Americans with Disabilities Act. Handicapped parking
spaces are available. If you require special assistance or have a request for sign interpretative services or
other services please call 210 - 619 -1030.
The City Council for the City of Schertz reserves the right to adjourn into executive session at any
time during the course of this meeting to discuss any of the matters listed above, as authorized by the
Texas Open Meetings Act.
Executive Sessions Authorized: This agenda has been reviewed and approved by the City's legal
counsel and the presence of any subject in any Executive Session portion of the agenda constitutes a
written interpretation of Texas Government Code Chapter 551 by legal counsel for the governmental
body and constitutes an opinion by the attorney that the items discussed therein may be legally
discussed in the closed portion of the meeting considering available opinions of a court of record and
03 -22 -2016 City Council Agenda Page - 3 -
opinions of the Texas Attorney General known to the attorney. This provision has been added to this
agenda with the intent to meet all elements necessary to satisfy Texas Government Code Chapter
551.144(c) and the meeting is conducted by all participants in reliance on this opinion.
COUNCIL COMMITTEE AND LIAISON ASSIGNMENTS
Mayor Carpenter
Councilmember Fowler — Place 1
Audit Committee
Interview Committee for Boards and Commissions
Interview Committee for Boards and Commissions
Schertz Housing Board Liaison
Investment Advisory Committee
Randolph Joint Land Use Study (JLUS) Executive
TIRZ II Board
Committee
Schertz Seguin Local Government Corporation
Councilmember Azzoz — Place 2
Councilmember John — Place 3
Animal Control Advisory Committee
Lone Star Rail District
Sweetheart Advisory Committee
Mayor Pro -Tem Edwards — Place 4
Councilmember Thompson Place 5
Audit Committee
Audit Committee
Hal Baldwin Scholarship Committee
Investment Advisory Committee
Interview Committee for Boards and Commissions
Cibolo Valley Local Government Corporation
03 -22 -2016 City Council Agenda Page - 4 -
Workshop Item
CITY COUNCIL MEMORANDUM
City Council Meeting: March 22, 2016
Department: Mayor /Council
Subject: Discussion regarding Council's
Rules of Conduct and Procedure
and Code of Ethics
BACKGROUND:
At the City Council meeting of February 23, 2016, Councilmember Fowler requested a
workshop item to discuss the Councils' Rules of Conduct and Procedures and Code of
Ethics as it relates to the recent action taken regarding the Mayor Pro -Tern position.
FISCAL IMPACT:
None
RECOMMENDATION:
None
ATTACHMENTS:
City Council Rules of Conduct & Procedure
Code of Ethics
ORDINANCE NO. 16 -M -02
AN ORDINANCE BY THE CITY OF SCHERTZ, TX AMENDING CITY
COUNCIL CODE OF ETHICS; PROVIDING A POLICY FOR MEDIA
RELATIONS; REPEALING ALL ORDINANCES OR PARTS OF
ORDINANCES IN CONFLICT WITH THIS ORDINANCE; AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, the City Council of the City of Schertz has previously adopted a Code of Ethics;
and
WHEREAS, the City Council currently does not address the issue of dealing with the media;
and
WHEREAS, the City Council has determined that it is in the best interest of the City to amend,
update, and clarify the Code of Ethics as they relate to dealing with the media.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF SCHERTZ, TEXAS:
Section 1. That the City Council Code of Ethics are amended by adding a Section 4
under the Ethical Conduct Rules as follows:
4. City Council Media Communication Guidelines
a. Effective media relations best serves the City by providing accountability to the
public and transparency of government, ensuring accurate information is conveyed to the
public, establishing and maintaining an accurate public perception of the City; informing
residents of City programs and services, and promoting the City's achievements,
activities and significant events.
b. Council Members and the Mayor have been elected to represent our community
and are free to speak to the media on any subject. This policy and its included guidelines
are intended to ensure that accurate consistent information is provided to the media and
that City Council's integrity and professional image is preserved.
C. Guidelines:
1. Council Members and the Mayor have the right to express personal
opinions on any issue, but must make it clear that they are speaking for
themselves, are not speaking in an official capacity for the City, and are not
speaking on behalf of City Council, unless the position has been adopted by the
City Council;
2. All conversations with a member of the media should be treated as on the
record.
3. Where time permits City Council members and the Mayor should
communicate with the City's Public Information Officer prior to interviews with
the media; otherwise all interviews with a member of the media should be
reported to the City's Public Information Officer as soon as reasonably possible
after the interview.
4. There are certain highly sensitive issues that may require greater discretion
when speaking to media. These issues include:
Legal issues, including liability issues and pending litigation;
ii. Personnel issues, including those surrounding existing and former
employees;
iii. Questions that involve police or fire investigations; or
iv. A community -wide situation or emergency.
It is highly encouraged that City Council members and the Mayor contact the City
Manager for any relevant information prior to commenting on such matters.
Section 2. The recitals contained in the preamble hereof are hereby found to be true, and
such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part
of the judgment and findings of the Council.
Section 3. All ordinances and codes, or parts thereof, which are in conflict or
inconsistent with any provision of this Ordinance are hereby repealed to the extent of such
conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters
resolved herein.
Section 4. This Ordinance shall be construed and enforced in accordance with the laws
of the State of Texas and the United States of America.
Section 5. If any provision of this Ordinance or the application thereof to any person or
circumstance shall be held to be invalid, the remainder of this Ordinance and the application of
such provision to other persons and circumstances shall nevertheless be valid, and the City
hereby declares that this Ordinance would have been enacted without such invalid provision.
Section 6. It is officially found, determined, and declared that the meeting at which this
Ordinance is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Ordinance, was
given, all as required by Chapter 551, as amended, Texas Government Code.
Section 7. This Ordinance shall be effective upon the date of final adoption hereof and
any publication required by law.
PASSED ON FIRST READING, the 26TH day of January, 2016.
PASSED, APPROVED and ADOPTED ON SECOND READING, the 2nd day of
February, 2016.
Mayor, Michael R. Carpenter
ATTEST:
GAS=t: -t /*N
City Secretary, Brenda Dennis
(Seal of City)
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City Council Code of Ethics
2 -2 -2016 Final
Introduction
The City Council Code of Ethics (the "Codes ") applies only to the members of the City
Council: the Mayor, the Mayor Pro -Tem and the other City Council members. Furthermore,
all provisions of the Codes apply equally to the Mayor, Mayor Pro -Tem and City Council
members, who must follow the content of the Codes as well as the spirit.
It is the policy of the City Council that all of its members shall abide by federal and state law. It
is also the policy of the City Council that all of its members shall abide by the provisions set
forth in the City Charter and all City ordinances and policies, including the Codes.
Purpose
By adopting these Codes, Council members commit to:
• transparent and accountable governance;
• honest, fair and respectful dealings with fellow Council members, City staff, and the
wider community; and
• working together to deliver the best outcomes for the long -term interests of the City.
These standards, together with the ongoing requirement for Council members to abide by
Council policies, as they change from time to time, will ensure that public trust and confidence in
the City Council is enhanced.
Limitations
The Codes are intended to support, explain or otherwise clarify the articles set forth in the
City Charter or to exercise the specific right given to the City Council in the City Charter in
Article III, Section 3.01 and Article IV, Section 4.08, to exercise its governmental powers.
Nothing in the Codes is intended to contradict or supersede the City Charter or state law.
Procedure
1. Council Member and Board. Committee or Commission Member Interactions
a. City boards, committees and commissions are formed in order to provide
independent recommendations to Council and, in the case of some commissions,
to conduct hearings in order to make determinations, which may or may not be
subject to appeal to the Council.
2. Council Members Serving as Council Liaisons
a. A Council liaison is a Council member who is specifically assigned to be the
liaison between the City Council and a board, committee or commission. The
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primary role of the liaison is that of facilitator of communications between the
board, committee or commission and the Council. A Council member who is
appointed to sit as a member of a board, committee or commission is not a liaison
for purposes of this policy.
b. A Council liaison shall facilitate communications between the board, committee
or commission and the Council. The liaison should not be an advocate for the
board, committee or commission, give direction to a board, committee or
commission or influence a decision of a board, committee or commission. The
liaison may, however, assist and provide guidance to a board, committee or
commission with their work plans or agendas.
c. A Council Liaison Acts as the:
i. Spokesperson on behalf of the Council when so directed by the Council.
ii. Contact person, if the board, committee or commission (or an individual
board, committee or commission member) wants such a channel of
communication.
iii. Council representative present to identify procedural and structural issues
relating to the effective functioning of the board, committee or
commission for Council.
d. Council Liaison Participation Expectations:
i. Attendance is discretionary with the Council member. Attendance as a
liaison at a board, committee or commission meetings is not required.
ii. Liaisons shall have no vote on the board, committee or commission.
iii. Liaison attendance at board, committee or commission retreats is
discouraged unless attendance is requested by the board, committee or
commission.
iv. Liaisons do not have a right to be in attendance at board, committee or
commission executive sessions and shall abstain from attending such
executive sessions unless invited to attend by the collective board,
committee or commission.
Ethical Conduct Rules
1. Ethical Conduct Rules for all City Council Members
a. During City Council meetings, City Council members shall assist in preserving
order and decorum and shall neither by conversation or otherwise delay or
interrupt the proceedings nor refuse to obey the orders of the presiding officer or
the rules of the City Council.
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b. During City Council meetings, a City Council member desiring to speak shall
address the chair and, upon recognition by the presiding officer, shall confine
discussion to the question under debate, avoid discussion of personalities and
indecorous language, and refrain from personal attacks and verbal abuse.
c. During City Council meetings, a City Council member desiring to question the
administrative staff shall address questions to the City Manager, who shall be
entitled either to answer the question(s) or designate a member of City staff. Such
designation may occur at any time, including prior to a City Council meeting.
City Council members shall not berate nor admonish staff members.
d. During City Council meetings, a City Council member, once recognized, shall not
be interrupted while speaking unless called to order by the presiding officer, to
raise a point of order, procedure or privilege, or unless the speaker chooses to
yield to questions from another member. If a City Council member is called to
order while speaking, that member shall cease speaking immediately until the
question of order is determined. If ruled to be in order, the member shall be
permitted to proceed. If ruled to be not in order, the member shall remain silent or
make additional remarks so as to comply with rules of the City Council.
e. During City Council meetings, City Council members shall confine their
questions to the particular matters before the assembly, and in debate, shall
confine their remarks to the issues before the City Council.
£ During City Council meetings, when there is more than one speaker on the same
subject, City Council members will delay their comments until after all speakers
on the subject have been heard.
g. Council members shall clearly state when he /she has been directed by Council to
speak on behalf of the City Council at the meeting of any board, committee or
commission. All other commentary offered before a board, committee or
commission is deemed to be the personal opinion of the Council member.
h. Council members shall not speak on behalf of the Council at any place or time
unless they have been so directed by the body of the City Council. Any
commentary offered at any time, in public or otherwise, is deemed to be the
personal opinion of the City Council member speaking.
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i. Council members shall not speak to any board, committee or commission member
on any matter that may come before the Council in a manner designed to
influence the member.
j. No Council member shall privately lobby any member outside of the meetings in
an attempt to influence his or her individual vote.
k. Any Council member who has testified on his or her own behalf or as a witness
before a board, committee or commission on any administrative action which then
comes to Council is disqualified from participating as a Council member on the
matter only if there is a legal conflict of interest.
2. Confidentialitv of Information Shared in Executive
a. Council members shall keep all matters discussed in executive session
confidential.
b. Any Council member who shares any part or portion of the discussions, discourse,
presentations or information heard or presented during an executive session shall
be deemed to have violated the Codes.
3. Individual Members of Council Providing Direction or Instruction to the City Manager or
Staff
a. Only the City Council, acting as a body, is permitted to provide direction and
instruction to the City Manager, City Secretary, City Attorney or the City Judge
(or Judges) regarding any matter confronting the City, whether policy - related or
otherwise.
b. No member of Council (specifically including the Mayor, the Mayor Pro -Tern and
the individual Council members) shall, at any time, give individual instruction to,
attempt to define policy for, or make any demand of the City Manager, City
Secretary, City Attorney or the City Judge (or Judges) or any member of staff.
c. No member of Council shall attempt to influence the City Manager, City
Secretary, City Attorney, City Judge (or Judges) or any member of staff to
circumvent City rules, policies or ordinances.
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d. Any member of Council may, of course, at any time, make requests of the City
Manager, City Secretary, City Attorney or the City Judge (or Judges) or any
member of staff for information, assistance, or other help as may be necessary, so
long as no orders, threats, promises, intimidations, or ultimatums, explicit or
implicit, are issued.
e. The single exception to this rule is that in times of emergency lawfully declared
by the Mayor, the Mayor may act independently as to matters of urgent need until
a meeting of the Council, in quorum, can be called.
f. Any member of Council giving individual instruction or making a demand of the
City Manager, City Secretary, City Attorney or the City Judge (or Judges) or
any member of staff, with the exception of times of emergency lawfully
declared by the Mayor, during which time the Mayor may act independently
until a meeting of the Council, in quorum, can be called, shall be deemed to
have violated the Codes.
4. City Council Media Communication Guidelines
a. Effective media relations best serves the City by providing accountability to the
public and transparency of government, ensuring accurate information is conveyed
to the public, establishing and maintaining an accurate public perception of the
City; informing residents of City programs and services, and promoting the City's
achievements, activities and significant events.
b. Council Members and the Mayor have been elected to represent our community and
are free to speak to the media on any subject. This policy and its included
guidelines are intended to ensure that accurate consistent information is provided to
the media and that City Council's integrity and professional image is preserved.
C. Guidelines:
1. Council Members and the Mayor have the right to express personal opinions on
any issue, but must make it clear that they are speaking for themselves, are not
speaking in an official capacity for the City, and are not speaking on behalf of
City Council, unless the position has been adopted by the City Council;
2. All conversations with a member of the media should be treated as on the
record.
3. Where time permits City Council members and the Mayor should communicate
with the City's Public Information Officer prior to interviews with the media;
otherwise all interviews with a member of the media should be reported to the
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City's Public Information Officer as soon as reasonably possible after the
interview.
4. There are certain highly sensitive issues that may require greater discretion
when speaking to media. These issues include:
i. Legal issues, including liability issues and pending litigation;
ii. Personnel issues, including those surrounding existing and former
employees;
iii. Questions that involve police or fire investigations; or
iv. A community -wide situation or emergency.
It is highly encouraged that City Council members and the Mayor contact the City
Manager for any relevant information prior to commenting on such matters.
Violations
1. Violation of the Code of Ethics
a. Council members are expected to abide by the Codes at all times.
b. Any Council member not adhering to the Codes shall be in violation of said
Codes.
2. Violations of Provisions of the City Charter
a. Council members are expected to abide by the articles set forth in the City
Charter.
b. Any Council member who acts in violation of or in a manner inconsistent with the
provisions of the City Charter shall be deemed to have violated the Codes.
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3. Violations of Law or Policy by Council Members
Depending on the circumstances of alleged violations of law or policy, the Council may
initiate an investigation of the allegations prior to the filing of a request for any of the
actions described in this policy.
Nothing in this policy shall preclude individual Council members from making public
statements regarding such alleged conduct.
In deciding whether or not to open an investigation (whether pursuant to these rules or
pursuant to Article IV, Section 4.10 of the City Charter), City Council should consider:
a. whether a Council investigation may compromise other investigations regarding
the same alleged actions, and, if the actions may result in criminal charges,
whether the right of the accused Council member to a fair jury trial may be
compromised by proceeding with an investigation;
b. if persons involved in the allegations may choose to exercise their constitutional
right against self - incrimination, which may limit the investigation's ability to
present a full picture of alleged events; and
c. how to ensure the protection of rights of those accused of violations of law or
policy, those making such accusations, and those who have information regarding
the accusations.
At any point during any of the processes described in this policy, the Council may refer
the matter, as appropriate, to the Bexar, Comal or Guadalupe County District Attorney,
the Texas Elections Commission, or to another law enforcement agency, for
investigation. Following such a referral, the Council may proceed with any actions it
chooses to take under the provisions of the City Charter.
Reporting Violations
Any suspected violation or alleged violation by a Council member must be reported to the
Mayor. Any suspected violation or alleged violation by the Mayor shall be reported to the Mayor
Pro -Tern and the City Attorney. In the case of a City staff member making the report regarding a
Council member, the report shall be made to the City Manager, who will then report it to the
Mayor. Upon report, the City Manager and City Attorney will assist the Mayor (or the Mayor
Pro -Tem regarding a report concerning the Mayor) in following the procedures addressing
violations or alleged violations.
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Procedure for Conducting Inquiries
The role of leading an inquiry of any Council member for any violation or alleged violation of
this policy lies with the Mayor, Mayor Pro -Tem, and, if approved by Council, an independent
attorney or investigator. If the Mayor is the subject of an inquiry, the Mayor Pro -Tem, or the
next ranking official by seniority and, if approved by Council, an independent attorney or
investigator will lead the inquiry. The City Attorney shall not conduct the investigation of any
Council member.
All Council members who are not the subject of an inquiry have a right to participate in the
inquiry process regarding violations or alleged violations and their subsequent enforcement.
Any member of the Council who is the subject of an inquiry shall have the ability to provide a
written statement responding to the findings of the inquiry.
Enforcement of Violations
The members of City Council have the obligation to govern themselves responsibly in the
enforcement of any violation of this policy. The objective for establishing rules of enforcement
pertaining to this policy is to provide fair, consistent, concise, and efficient guidelines for the use
of enforcement against violations of this policy. As a general matter, enforcement of this policy
may be progressive, but circumstances may indicate that strong actions be taken immediately.
Furthermore, Council is not bound to the enforcement guidelines of this policy, and should make
decisions on a case -by -case basis. City Council, as a collective body, may change the order of
the disciplinary steps listed below, or may choose not to use any step, depending on the
circumstances under review.
City Council members may take any appropriate disciplinary action including, but not limited to:
• Cautioning
o Cautioning is identified as a verbal reprimand due to a violation of the policy. The
cautioning is only a verbal reprimand and shall not be recorded.
o A cautioning shall only be administered in private by the Mayor with only one
(1) member of Council present. If the Mayor is receiving the cautioning, it shall
be administered in private by the Mayor Pro -Tem with only one (1) member of
Council present.
• Correction
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• Correction is identified as a verbal reprimand due to multiple policy violations.
The correction of any Council member, including the Mayor, will not be
administered in writing and shall be conducted in accordance with the Open
Meetings Act.
• A quorum of Council plus one (1), including the corrected Council member, shall
be present during the correction of another Council member.
• The City Attorney shall be notified of the correction before the correction is
administered and the City Attorney shall be present during the administration of
the correction.
• Censure
• The act of placing a Council member under censure is an official and public
reprimand of a City Council member by the body of the City Council for multiple
and /or serious infractions against the City Council Code of Ethics. Therefore,
City Council Members who are placed under censure are considered to be `not in
good standing' with the body of the Council.
• The censure of any Council member, including the Mayor, shall be administered
in writing.
• Censure may last up to sixty (60) days or as appropriately defined by City Council
on a case by case basis.
• At the end of the censure period, the censure has expired and shall not be
extended.
• A Council member placed under censure may return to a good standing status
once their censure period has ended.
• The body of the City Council may determine to end the censure period of a
Council member prior to the conclusion of said period at their discretion.
• All censure hearings shall be conducted in accordance with the Open Meetings
Act.
• Because censures are administered in writing, a censure must be publicly voted on
in open session of City Council. The censure of any Council member must be
passed by a 2/3 supermajority vote.
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The following Members of Council have received and agreed to place their
signatures on this adopted document this 2nd Day of February 2016.
Michael R. Carpenter, Mayor
#in Fowler, City Council Place 1
..-z A""--
Daryl John, CUFouncil ac 3
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City Council Place 4
Grumpy Azzoz, City Council Place 2
Robin Thompson, City Council Place 5
CITY OF SCHERTZ
CITY COUNCIL
RULES OF CONDUCT AND PROCEDURE
These Rules of Conduct and Procedure (these "Rules ") are intended to provide an
understandable and workable structure for City Council meetings.
These Rules shall serve to aid the conduct of public business at Council meetings, to facilitate
communication at Council meetings among Councilmembers and between Councilmembers and
City staff and members of the public, and to promote confidence in the citizens that their
government is performing its duties with the highest of ethical standards and with a genuine
interest in the well -being of the community.
There Rules are in all events subject to the City Charter and applicable provisions of State law,
including the Texas Open Meetings Act.
As a part of these Rules, the Council has established the following Code of Conduct for the
Mayor and all Councilmembers:
• Address the merits of the issues — no personal attacks
• Focus on representing the interests of all citizens.
• Attempt to resolve personal conflicts among Councilmembers internally before
speaking publicly.
• Assume positive intentions — don't look for hidden agendas.
• Observe the City's written Rules of Conduct and Procedure.
• When others are speaking, listen with an open mind.
• Recognize that inappropriate public disclosure of confidential information can be
detrimental to the City and its citizens.
• Understand that "majority rules ". Once a vote is taken, if you were in the
minority agree to disagree and move on. Recognize that a majority view, when
expressed in a vote, becomes an expression of City policy.
• Coordinate all requests of the City staff through the City Manager.
1 -12 -2015 Revised
TABLE OF CONTENTS
3.1
Page
3.2
ARTICLE 1.
3.3
Recessed Meetings .............................................................................. ............................... 2
AUTHORITY
Adjourned Meetings ............................................................................ ............................... 2
1.1
City Charter ......................................................................................... ...............................
1
1.2
Effective Date; Amendment ............................................................... ...............................
1
ARTICLE 2.
4.1
Mayor ................................................................................................... ..............................3
GENERAL RULES
Call to Order ....................................................................................... ............................... 3
2.1
Meetings to be Public .......................................................................... ...............................
1
2.2
Quorum ............................................................................................... ...............................
1
2.3
Minutes of Meetings ........................................................................... ...............................
1
2.4
Questions to Contain One Subject ...................................................... ...............................
1
2.5
Right to the Floor ................................................................................ ...............................
1
2.6
City Manager ...................................................................................... ...............................
1
2.7
City Attorney ...................................................................................... ...............................
2
2.8
City Secretary ...................................................................................... ...............................
2
2.9
Officers and Employees ...................................................................... ...............................
2
2.10
Rules of Order ..................................................................................... ...............................
2
2.11
Suspension of Rules ............................................................................ ...............................
2
2.12
Amendment to Rules ........................................................................... ...............................
2
2.13
Matters Not Addressed by Rules ........................................................ ...............................
2
ARTICLE 3.
TYPES OF MEETINGS
3.1
Regular Meetings ................................................................................ ............................... 2
3.2
Special Meetings ................................................................................. ............................... 2
3.3
Recessed Meetings .............................................................................. ............................... 2
3.4
Adjourned Meetings ............................................................................ ............................... 2
3.5
Executive Sessions .............................................................................. ............................... 2
3.6
Emergency Meetings .......................................................................... ............................... 3
ARTICLE 4.
PRESIDING OFFICER AND DUTIES
4.1
Mayor ................................................................................................... ..............................3
4.2
Call to Order ....................................................................................... ............................... 3
4.3
Preservation of Order .......................................................................... ............................... 3
4.4
Rulings by Presiding Officer .............................................................. ............................... 3
4.5
Questions to be Stated ......................................................................... ............................... 3
4.6
Substitution of Mayor ......................................................................... ............................... 3
ARTICLE 5.
APPOINTMENT PROCEDURES
5.1 Appointment Procedure for the Mayor Pro Tem ................................ ............................... 3
5.2 Appointment Procedure for a Councilmember ................................... ............................... 4
01 -12 -2015 Revised i
TABLE OF CONTENTS
(continued)
9.1
Page
9.2
ARTICLE 6.
8
9.3
ORDER OF BUSINESS
8
6.1
Agenda ................................................................................................ ...............................
5
6.2
Communication to Mayor and Council ............................................... ...............................
5
6.3
Approval of Minutes ........................................................................... ...............................
6
6.4
Presentations by Members of Council ................................................ ...............................
6
6.5
Consent Agenda .................................................................................. ...............................
6
To Postpone or Extend ...................................................................... ...............................
ARTICLE 7.
9.10
To Refer ............................................................................................ ...............................
CONSIDERATION OF ORDINANCES, RESOLUTIONS, AND MOTIONS
9.11
7.1
Printed, Typewritten, or Electronic Form ........................................... ...............................
6
7.2
City Manager Review ......................................................................... ...............................
6
7.3
City Attorney to Approve ................................................................... ...............................
6
7.4
Funding ............................................................................................... ...............................
6
7.5
Reading of Caption Only .................................................................... ...............................
6
7.6
Ordinances -Two Readings; Emergencies ........................................ ...............................
6
7.7
Recording of Votes ............................................................................. ...............................
7
7.8
Vote Required ..................................................................................... ...............................
7
7.9
Tie Vote .............................................................................................. ...............................
7
7.10
Numbering Ordinances and Resolutions ............................................ ...............................
7
7.11
Ordinance Passage Procedure ............................................................. ...............................
7
ARTICLE 8
RULES OF DECORUM
8.1
Recognition by presiding officer ........................................................ ...............................
7
8.2
Order ................................................................................................... ...............................
7
8.3
Presiding Officer ................................................................................. ...............................
7
8.4
Improper References to be Avoided ................................................... ...............................
8
8.5
Interruptions ........................................................................................ ...............................
8
ARTICLE 9.
MOTIONS AND MEETING PROCEDURES
9.1
Motions ............................................................................................... ............................... 8
9.2
Debate ................................................................................................. ...............................
8
9.3
Motion Procedures .............................................................................. ...............................
8
9.4
Point of Privilege ................................................................................ ............................... 9
9.5
Point of Procedure or Order ................................................................ ...............................
9
9.6
To Appeal a Ruling ............................................................................. ...............................
9
9.7
To Recess ................................................................................... ............................... 9&10
9.8
To Withdraw ..................................................................................... ...............................
10
9.9
To Postpone or Extend ...................................................................... ...............................
10
9.10
To Refer ............................................................................................ ...............................
10
9.11
To Amend ......................................................................................... ...............................
10
9.12
To Limit or Close Debate or "Call the Question" ............................. ...............................
10
9.13
To Count the Vote ............................................................................. ...............................
11
9.14
To Take Action or Reconsider an Action; Main Motions ................ ...............................
11
01 -12 -2015 Revised ii
TABLE OF CONTENTS
(continued)
Page
9.15 To take action or Rescind motion ..................................................... ............................... 11
9.16 To Take Action; Main Motions ........................................................ ............................... 11
9.17 Effect of Abstentions ........................................... .............................11 & 12
ARTICLE 10.
ENFORCEMENT OF DECORUM
10.1 Warning ............................................................................................... .............................12
10.2 Removal .............................................................................................. .............................12
10.3 Resisting Removal ............................................................................ ............................... 12
10.4 Motions to Enforce ........................................................................... ............................... 12
10.5 Adjournment ..................................................................................... ............................... 12
ARTICLE 11.
CREATION OF COMMITTEES, BOARDS, AND COMMISSIONS
11.1 Standing Committees ........................................................................ ............................... 12
11.2 Special Committees ................................................................. ............................... 12 & 13
ARTICLE 12.
CITIZENS' RIGHTS
12.1
Addressing the Council ..................................................................... ...............................
13
12.2
Manner of Addressing the Council — Time Limit ............................. ...............................
13
12.3
Personal and Slanderous Remarks .................................................... ...............................
13
12.4
Public Hearings ................................................................................. ...............................
13
12.5
Written Communications .................................................................. ...............................
13
12.6
Hearing of Residents ......................................................................... ...............................
14
ARTICLE 13.
COUNCIL AND STAFF RELATIONS
13.1
City Manager to Provide Information ............................................... ...............................
14
13.2
City Manager's Responses to Requests ............................................ ...............................
14
13.3
Directions to City Manager ............................................................... ...............................
15
13.4
City Manager's Duty to Inform ........................................................ ...............................
15
13.5
Customer Concerns ........................................................................... ...............................
15
13.6
City Manager /Council Relations ....................................................... ...............................
15
01 -12 -2015 Revised iii
ARTICLE 1.
AUTHORITY
1.1 City Charter. Section 4.09 (d) of the City Charter provides that the Council shall, by
ordinance, determine its own rules and order of business.
1.2 Effective Date; Amendment. These Rules shall be in effect upon their adoption by the
Council and until such time as they are amended or new rules are adopted. In the event
of a conflict between these Rules and the Charter, the Charter shall govern over these
Rules. In the event of a conflict between these Rules and State law, State law shall take
precedence.
ARTICLE 2.
GENERAL RULES
2.1 Meetings to be Public. All meetings of the Council and all meetings of committees
composed of a quorum of the Council shall be open to the public as provided by State
law, except when State law allows closed or executive sessions for certain limited topics.
2.2 Quorum. Three members of the Council, not including the Mayor, shall constitute a
quorum. In the absence of the Mayor, the Mayor Pro Tern or other presiding officer shall
be counted for purpose of determining the existence of a quorum. If a quorum is not
present, those in attendance will be named, and they may recess to a later time as
permitted by State law or may hear business before them, taking no official action.
2.3 Minutes of Meetings. An account of all proceedings of the Council shall be kept by the
City Secretary and shall constitute the official record of the Council. Such minutes, after
being approved by the Council (except any closed or executive session portion), shall be
open to public inspection. The City Secretary shall provide an index showing the action
of the Council in regard to all matters before to it at both regular and special meetings. A
recording or "certified agenda" of each closed or executive session shall be made and
maintained as required by State law.
2.4 Questions to Contain One Subject. All questions submitted for a vote shall contain only
one subject. If two or more subjects are involved, any Councilmember may require a
division, if the subjects can be reasonably divided.
2.5 Right to the Floor. Subject to Section 8.5, any Councilmember or member of City staff
desiring to speak shall be recognized by the Mayor (or the presiding officer in the
Mayor's absence) at an appropriate time, and shall confine his /her remarks to the subject
under consideration or to be considered.
2.6 City Manager. The City Manager or the Acting City Manager shall attend all meetings of
the Council unless excused. The City Manager may make recommendations to the
Council and shall have the right to take part in all discussions of the Council, but shall
have no vote. The City Manager shall be notified of all special meetings of the Council.
01 -12 -2016 Revised I
2.7 City Attorney. The City Attorney shall attend all meetings of the Council as required by
the Council or as requested by the City Manager, and shall, upon request of the Council
or the City Manager, give an opinion, either written or oral, on questions of law.
2.8 City Secretary. The City Secretary or the Deputy City Secretary shall attend all meetings
of the Council, unless excused, and shall keep the official minutes.
2.9 Officers and Employees. Any officer or employee of the City, when requested by the
City Manager, shall attend meetings of the Council. If requested to do so by the City
Manager, they shall present information relating to matters before the Council.
2.10 Rules of Order. Part 8 of these Rules shall govern the proceedings of the Council.
2.11 Suspension of Rules. Any provision of these Rules not required by the Charter or State
law may be temporarily suspended by a majority vote of the Councilmembers who are
present. The vote of each person on any such suspension shall be entered in the minutes.
2.12 Amendment to Rules. These Rules may be amended, or new rules adopted, by a duly
adopted ordinance.
2.13 Matters Not Addressed by Rules. Issues of the conduct or procedure of public meetings
not addressed by these Rules, the Charter, or State law shall be determined by the Mayor
(or the presiding officer in the Mayor's absence).
ARTICLE 3.
TYPES OF MEETINGS
3.1 Regular Meetings. The Council shall hold regularly scheduled meetings as provided by
the Code of Ordinances, Part II, Section 2 -2. The Council may also hold regularly
scheduled meetings which may be designated by the Council as "workshop" sessions.
3.2 Special Meetings. Special meetings may be called by the Mayor, the City Manager, or
any three (3) members of the Council. The call for a special meeting shall be filed with
the City Secretary in written form, except that announcement of a special meeting during
any regular meeting at which all members are present shall be sufficient notice of such
special meeting. The call for a special meeting shall specify the day, hour, and place of
the special meeting and shall identify the subject or subjects to be considered.
3.3 Recessed Meetings. Subject to State law, any meeting of the Council may be recessed to
a later time, provided that no recess shall be for a longer period than until the next regular
meeting.
3.4 Adjourned Meetings. Any meeting of the Council that has been adjourned may not be
reconvened except by a motion to reconsider prior to any Councilmember's departure
from the Council chamber. See Sections 9.3 and 9.4.
3.5 Executive Sessions. Executive or closed sessions may only be held in accordance with
State law.
01 -12 -2016 Revised 2
3.6 Emergency Meetings. In case of emergency or urgent public necessity, an emergency
meeting may be called as a special meeting as set forth in Section 3.2, however, an
emergency meeting may not be held unless authorized by, and notice is given in
accordance, with State law.
ARTICLE 4.
PRESIDING OFFICER AND DUTIES
4.1 Maw. The Mayor, if present, shall preside as Mayor at all meetings of the Council. In
the absence of the Mayor, the Mayor Pro -Tem shall preside. In the absence of both the
Mayor and the Mayor Pro -Tem, the most senior Councilmember (by time of service on
the Council) present shall be the chairperson.
4.2 Call to Order. Each meeting of the Council shall be called to order by the Mayor, or in
the Mayor's absence, by the Mayor Pro -Tem. In the absence of both the Mayor and the
Mayor Pro -Tem, the meeting shall be called to order by the most senior Councilmember
(by time of service on the Council) present.
4.3 Preservation of Order. The presiding officer shall preserve order and decorum, prevent
personalities from becoming involved during debate or the impugning of members'
motives, and confine Councilmembers in debate to the question under discussion.
4.4 Rulings by Presiding_ Officer. The presiding officer shall rule on points of privilege,
points of procedure or order, and withdrawals of motions, subject to the right of any
member to appeal to the Council as set forth in Article 9 of these Rules. See Sections
9.3, 9.4, 9.5, 9.6, and 9.8.
4.5 Questions to be Stated. The presiding officer shall state all questions submitted for a vote
and announce the result. A roll call vote shall be taken on all votes.
4.6 Substitution of Mayor. In the event the Mayor must relinquish the chair, the Mayor shall
call upon the Mayor Pro -Tem to preside if the Mayor Pro -Tem is present. If the Mayor
Pro -Tem is not present, the Mayor may call upon the most senior Councilmember (by
time of service on the Council) present to preside, but such substitution shall not continue
beyond adjournment of that meeting.
ARTICLE 5.
APPOINTMENT PROCEDURES
5.1 Appointment Procedure for the Mayor Pro Tem.
(a) The Council will discuss, and with a majority vote, appoint the Councilmember to
serve as the Mayor Pro Tem for the City following a properly made motion to
appoint a member who is both:
1. Eligible to serve as Mayor Pro Tempore; and
2. At the time of the motion a Councilmember in good standing.
01 -12 -2016 Revised
(b) The appointed Mayor Pro Tern must be a Councilmember and must meet the
qualifications of Section 4.02 of the City Charter. In addition, to be appointed to
the position of Mayor Pro Tem, a Councilmember must be an elected member of
Council.
(c) Term dates for the Mayor Pro Tem position will begin in February and end in
February of each year.
(d) The position will have a term of office of one year.
(e) The appointed Mayor Pro Tern may be removed by Council by a two- thirds (2/3)
majority vote of the members of Council at any time during his or her term.
(f) Council reserves the right to alter this procedure at any time by resolution or rule.
5.2 Appointment Procedure for a Councilmember.
(a) The Council may appoint a Councilmember to a vacant seat as authorized by
Section 4.06 of the City Charter.
(b) The Council will announce and advertise on the City's website and in the City's
newspaper of record that applications are being accepted for a vacant position on
Council.
(c) A due date for applications to be submitted will be set.
(d) Applicants must meet the qualifications for a Councilmember set forth in Section
4.02 of the City Charter.
(e) Applications will be received by the City Secretary's office and distributed to all
Councilmembers.
(f) An interview date will be set and posted for a public meeting.
(g) Interviews of prospective candidates will be held in a public forum by a quorum
of Councilmembers.
(h) Councilmembers will discuss, and appoint by majority vote, the new member of
Council at either the same meeting as the interviews or at a subsequent Council
meeting.
(i) The Council is the final judge of whether a candidate is qualified to serve as a
Councilmember as set forth in Section 4.03 of the City Charter.
0) Council reserves the right to alter this procedure at any time by resolution or rule.
01 -12 -2016 Revised 4
ARTICLE 6.
ORDER OF BUSINESS
6.1 Agenda. The City Manager and the City Secretary shall prepare an agenda for each
meeting of the Council. Items may be placed on the agenda by the City Manager (or in
his absence any Assistant City Manager), the Mayor, or any Councilmember, except that
a Councilmember directing that an item or items be placed on an agenda must do so in
open session, during a properly posted meeting of the Council. Items placed on the
agenda by the City Manager (or in his absence any Assistant City Manager) may be
removed only by the City Manager (or any Assistant City Manager) and he /she may do
so at any time that permits the agenda for the Council meeting to be properly posted by
the City Secretary's Office under the Texas Open Meetings Act. Items placed on an
agenda by the Mayor may be removed only by the Mayor, and he /she may do so at any
time that permits the agenda for the Council meeting to be properly posted by the City
Secretary's Office under the Texas Open Meetings Act. Items placed on the agenda by a
Councilmember may be removed only by that specific Councilmember, and he /she may
do so at any time that permits the agenda for the Council meeting to be properly posted
by the City Secretary's Office under the Texas Open Meetings Act.
(a) Information Required. Any item to be on the agenda must be provided to the
City Manager pursuant to a procedure established and modified by the City
Manager from time to time. Each item on the agenda must contain sufficient
information so that full disclosure of the item to be addressed is present so as to
alert the Council and the public of the topic to be considered.
(b) Order of Listing Items; Sponsor and Responsible Staff. The agenda shall list all
items for consideration in a format recommended by the City Manager. The name
of the person or persons placing an item on the agenda and the name of any
expected staff presenter shall be stated on the agenda.
(c) Copy Provided to Mayor and Council Members. The City Secretary shall furnish
the Mayor and each Councilmember a copy of the agenda, including the proposed
ordinances, resolutions, petitions, notices, or other materials as required. Copies
of attachments and background material will generally be provided for the initial
presentation only and should be retained by the Mayor and the Councilmembers
until such time as the item is finalized.
(d) Copy Available to Public. A copy of the agenda, with or without attachments as
determined by the City Manager, shall be made available to the public at City
Hall prior to the meeting. Copies of the agenda shall be available to the public at
the meeting.
(e) Order; Exception. The ordinances, resolutions, and other proposed actions shall
be taken up and disposed of by the Council in the order listed in the agenda,
subject to the right of the presiding officer to take up matters in a different order.
6.2 Communication to Mayor and Council. The City Manager shall provide the Council with
a copy of each ordinance or resolution and appropriate analysis of items proposed to be
acted upon by the Council at a meeting. These communications shall be delivered to the
01 -12 -2016 Revised 5
Mayor and Councilmembers along with the agenda. This information should also be
retained by the Mayor and Councilmembers until such time as the item is finalized. Staff
members, in making presentations to Council at a meeting of the Council, should
endeavor to restrict their presentations to five (5) minutes, excluding responses to
questions by the Mayor and/or Councilmembers.
6.3 Approval of Minutes. Minutes may be approved without public reading if the City
Secretary has previously furnished the Mayor and each Councilmember with a copy
thereof.
6.4 Presentations by Members of Council. The agenda shall provide a time when the Mayor
and each Councilmember may bring before the Council any business that person believes
should be brought up during the "Requests by Mayor and Councilmembers" and
"Announcements by Mayor and Councilmembers" portions of the agenda. These matters
need not be specifically listed on the agenda unless the person desiring to make a
comment knows prior to posting of the agenda that he /she will make such comment. In
response to an unposted comment, there (1) may only be a statement of factual
information in response, (2) a recitation of existing City policy, or (3) discussion
regarding a proposal to place the subject on the agenda for a subsequent meeting.
6.5 Consent Agenda. At the direction of the City Manager (or in his absence an Assistant
City Manager) with respect to items believed to be non - controversial, the City Secretary
shall place multiple items on a "Consent Agenda" portion of the agenda, subject to the
right of the Mayor or any Councilmember to request at the meeting that any one or more
of such items be removed from the Consent Agenda for individual consideration. First
readings of ordinances shall in all events be posted for individual consideration and shall
not be included on the Consent Agenda.
ARTICLE 7.
CONSIDERATION OF ORDINANCES, RESOLUTIONS, AND MOTIONS
7.1 Printed, Typewritten, or Electronic Form. All ordinances and resolutions shall be
presented to the Council only in printed, typewritten, or electronic form.
7.2 City Manager Review. All ordinances and resolutions shall be reviewed by the City
Manager or his designee.
7.3 City Attorney to Approve. All ordinances and resolutions shall be approved as to form
and legal content by the City Attorney, when requested by the Mayor or the City
Manager.
7.4 Funding. All actions authorizing an expenditure of money shall include the exact source
of the funds to be expended.
7.5 Reading of Caption Only. Upon being introduced, each proposed ordinance or resolution
shall be read by caption only.
7.6 Ordinances —Two Readings; Emergencies. Ordinances introduced at a Council meeting
shall not be finally acted upon until at least the next regular meeting, except that
01 -12 -2016 Revised 6
immediate action may be taken upon an emergency as determined by the Council in
accordance the Charter or State law.
7.7 Recording of Votes. The ayes and nays shall be taken upon the consideration of all
ordinances and resolutions and shall be entered in the minutes of the Council.
7.8 Vote Required. Approval of every ordinance, resolution, or motion, unless otherwise
required by these Rules, the Charter, or State law, shall require the affirmative vote of
three (3) Councilmembers who are present and eligible to vote.
7.9 Tie Vote. In the event of a tie in votes on any motion, the Mayor shall cast the decisive
vote in accordance with Section 4.05 of the Charter. Other Councilmembers acting as
presiding officer shall not be restricted to voting only in the event of a tie.
7.10 Numbering Ordinances and Resolutions. After approval of a resolution or an ordinance
on second reading or on a single reading as an emergency, the City Secretary shall assign
a number to each ordinance or resolution within the records of the City.
7.11 Ordinance Passage Procedure. After passage, an ordinance shall be signed by the
presiding officer and shall be attested by the City Secretary or Deputy City Secretary, and
it shall be filed and thereafter preserved in the office of the City Secretary.
ARTICLE 8.
RULES OF DECORUM
8.1 Recognition by presiding officer. Subject to Section 8.5, No person shall address the
Council without first being recognized by the presiding officer.
8.2 Order. While the Council is in session, the Councilmembers must preserve the order and
decorum of the meeting, and a Councilmember shall neither, by statement or otherwise,
delay or interrupt the proceedings or the peace of the Council or disturb any other
Councilmember while speaking or refuse to obey the orders of the presiding officer.
Councilmembers are expected to remain on the dais during a Council meeting unless they
have good cause to vacate.
8.3 Presiding Officer. The Mayor or the Mayor Pro -Tem or such other member of the
Council who is serving as the presiding officer may participate in debate, subject only to
such limitations of debate as are the rights and privileges of a Councilmember by reason
of such Councilmember acting as the presiding officer. If the presiding officer is
engaged in debate and is, at the insistence of three (3) Council members, abusing the
position of the presiding officer, the presiding officer must relinquish the chair to the
Mayor Pro -Tem, or in his /her absence, to the next most senior Councilmember (by time
of service on the Council) present. The Mayor Pro -Tem or such other member, other
than the Mayor, who is serving as presiding officer may move, second, and debate from
the chair, subject only to such limitations of debate as are the rights and privileges of a
Councilmember by reason of the member acting as the presiding officer.
01 -12 -2016 Revised 7
8.4 Improper References to be Avoided. When a Councilmember has the floor pursuant to
Section 2.5 or 8.5, he /she shall avoid all references to personalities and indecorous
language.
8.5 Interruptions. A Councilmember, once recognized, shall not be interrupted by the Mayor
or another Councilmember when speaking unless it is to raise a point of privilege
(Section 9.4) or a point of procedure or order (Section 9.5), or to enter a motion to
withdraw a previously- stated motion (Section 9.8), or as otherwise provided in these
Rules. If a Councilmember, while speaking, is interrupted as set forth herein, the
Councilmember so interrupted should cease speaking until the question is determined.
ARTICLE 9.
MOTIONS AND MEETING PROCEDURES
9.1 Motions. A Councilmember, after he /she obtains the floor, or the Mayor may make a
motion on the particular subject of discussion or a procedural point as permitted. A
"Second" to the motion, if required, must be made by a Councilmember who did not
make the motion within a reasonable but brief time period. The Mayor may not
"Second" a motion. A motion or a "Second" merely implies that the maker of the motion
and the person who "Seconds" agree that the motion should come before the meeting and
not that he /she necessarily favors the motion. Without a "Second ", if required, the
motion dies.
9.2 Debate. Debate, if permitted, must be limited to the merits of the issue under discussion
as stated by the presiding officer.
9.3 Motion Procedures. There are twelve (12) types of motions in three (3) categories:
Meeting Conduct Motions (4 types), Disposition Motions (7 types), and Main
Motions(1 type) *. When any motion is pending, any motion listed above it on the chart
below is in order; those below it are out of order.
Motion
May
Interrupt
Speaker
Second
Required
Debatable
Amendable
Resolved
by Chair
No Vote
Affirmative
Vote by 3
Council-
members
2/3
Vote
A. Meeting Conduct Motions
1. point of privilege
yes
no
no
no
yes
no
no
2. point of procedure or order
yes
no
no
no
yes
no
no
3. to appeal a ruling
no
yes
yes
no
no
yes
no
4. to recess
no
yes
yes
yes
no
yes
no
B. Disposition Motions
5. to withdraw
yes
no
no
no
yes
no
no
6. to postpone
no
yes
yes
yes
no
yes
no
7. to refer
no
yes
yes
yes
no
yes
no
Sections 9.3 through 9.14 are included by permission of Donald A. Tortorice, The Modern Rules of Order,
ABA Publishing, 2nd Edition.
01 -12 -2016 Revised 8
8. to amend
no
yes
yes
yes
no
yes
no
9. to limit or close debate or
"call the question"
no
yes
yes
yes
no
no
yes
10. to extend debate
no
yes
yes
yes
no
yes
no
11. to count the vote
no
yes
no
no
no **
no
no
C. Main Motions
12. to reconsider
yes
yes
if original
motion
was
debatable
no
no
yes
no
13. to rescind
no
yes
yes
yes
no
no
yes
14. to take action
no
yes
yes
yes
no
Yes * **
no
9.4 Point of Privilege. A point of privilege, sometimes called a point of personal privilege, is
a communication from a Councilmember to the presiding officer, drawing urgent
attention to a need for personal accommodation. For example, the point may relate to an
inability to see or hear, a matter of comfort, a matter of requested convenience, or an
overlooked right of privilege that should have been accorded to the Councilmember(s).
In essence, it is a call to the presiding officer for the purpose of assuring a
Councilmember's convenient and appropriate participation in the meeting. Because of its
urgent nature, a point of privilege can interrupt a speaker. Because it is addressed to the
attention of and action by the presiding officer, it cannot be debated or amended, and no
vote is required.
9.5 Point of Procedure or Order. A point of procedure, sometimes called a point of order, is a
question addressed to the presiding officer, no seconding is required, and either inquiring
into the manner of conducting business or raising a question about the propriety of a
particular procedure. It is simply an inquiry and is resolved by correction or clarification
by the presiding officer. A point of procedure can interrupt a speaker. Because it is
addressed to the attention of and action by the presiding officer, a second is not required,
and it cannot be debated or amended, and no vote is taken.
9.6 To Appeal a Ruling. Decisions or rulings of the presiding officer are final on questions
of procedure, except that any ruling by the presiding officer's ruling can be appealed to a
vote of the Council. Whenever a Councilmember questions the appropriateness or
essential fairness of the presiding officer, that member can appeal the ruling to a vote of
the meeting. If, however, a motion is out of order as a matter of law (not a proper subject
of the meeting, improper notice given, etc.), the presiding officer's ruling cannot be
appealed. A motion to appeal cannot interrupt a speaker. To prevent frivolous appeals, a
second is required. The motion is subject to debate (which should be brief) and, by its
nature, is not amendable. To overrule a procedural decision of the presiding officer, an
affirmative vote of three (3) Councilmembers is required.
9.7 To Recess. A motion to recess requests a brief interruption of the meeting's business,
usually so that an ancillary matter can be addressed, or simply to provide a needed break.
Mandatory if seconded; no vote required
01 -12 -2016 Revised 9
Unless stated in the motion, the period of recess is decided by the presiding officer. If
necessary, a recess can extend the meeting from one day to another, subject to State law.
The motion cannot interrupt a speaker, and a second is required. It is debatable, it can be
amended, and an affirmative vote of three (3) Councilmembers is required.
9.8 To Withdraw. Only the maker of the motion can make a motion to withdraw it. It is
essentially a communication to the presiding officer that the maker is withdrawing his/her
proposal. This is the maker's privilege; thus, it does not require a second. Because the
withdrawal motion obviates discussion, it can interrupt a speaker. In addition, because
another Councilmember later can make a similar motion, a withdrawal motion is not
subject to debate, amendment, or vote. The presiding officer should simply state that the
motion is withdrawn, and the meeting should proceed with a new treatment of the issue at
hand —or a new issue.
9.9 To Postpone or Extend. These motions may arise from a need for further information, a
matter of convenience, or for any other reason that will enable the Council to deal with
the issue more effectively during the same meeting or at a later time. Unless otherwise
specifically provided in the motion itself, a postponed or extension motion can be
renewed at a later appropriate time during the meeting or, if properly posted, at a later
meeting. This motion cannot interrupt a speaker. It requires a second, it is debatable, and
it is amendable (particularly as to postponement, timing), and an affirmative vote of three
(3) Councilmembers is required.
9.10 To Refer. A motion to refer is typically used to submit an issue to a committee, usually
for study leading to a subsequent recommendation. Because it ordinarily disposes the
motion for purposes of the current meeting, a motion to refer is subject to the same rules
that apply to a main motion. (See Section 9.14). This motion cannot interrupt a speaker,
and a second is required. It is debatable and amendable, and an affirmative vote of three
(3) Councilmembers is required.
9.11 To Amend. A motion to amend proposes a change in the wording of a motion then under
consideration. When a motion to amend is pending and an amendment to the amendment
is proposed, the presiding officer should focus discussion on the latest amendment,
resolve that question, then proceed to the first amendment before continuing discussion
on the main motion. Votes on amendments are thus in reverse order of the sequence in
which they are proposed. A motion to amend cannot interrupt a speaker. It requires a
second, and it is debatable and amendable. An affirmative vote of three (3)
Councilmembers is required for approval of the amendment. Note that State law may
restrict amendments to proposals that are required to be set forth in the notice of the
meeting.
9.12 To Limit or Close Debate or "Call the Question ". Because the extent to which an issue is
discussed rests primarily with discretion of the presiding officer, it is the presiding officer
who carries the burden of ensuring that adequate time and discussion are given to
differing points of view. A motion to limit or close debate is therefore an overruling of
the presiding officer's determination. A motion to close debate is the same as a motion to
"call the question ". Because this motion affects the most fundamental right of any
Councilmember, the right to speak one's views, it is the only procedural motion that
requires an affirmative vote of two- thirds of participants voting.
01 -12 -2016 Revised 10
9.13 To Count the Vote. A motion to count the vote should be limited to those circumstances
where the convenient hearing of "yeas" and "nays" cannot clearly resolve the issue. It
represents the right of a Councilmember to have a vote demonstrated by count. That
count can be directed by the presiding officer either as a showing of hands or a standing
of voting members while the vote is recorded. Upon completion of the count, the
presiding officer announces the result —and final disposition of the issue voted upon.
This motion cannot interrupt a speaker. It requires a second; it is neither debatable nor
amendable; and, because of the importance of the matter, it should be considered
mandatory; thus, no vote is required.
9.14 Motion to Reconsider. Allows a main motion to be brought back before the City Council
for consideration. May be made only at the meeting at which the vote to be reconsidered
was taken. It may be made by any member of City Council. Any City Council member
may second it. It can be made while any other question is pending, even if another
member has the floor. It requires a majority vote to pass. A motion may only be
reconsidered twice. If the reconsideration is moved while another subject is before the
City Council, it cannot interrupt the pending business, but, as soon as the pending
business has been disposed of the motion has the preference over all other main motions
and general business of the agenda. In such a case the Mayor does not state the question
on the reconsideration until the immediately pending business is completed.
9.15 Motion to Rescind. The motion to rescind is a main motion without any privilege, may
only be made when there is nothing else before the City Council and must be made at the
same meeting at which the subject matter of the motion was considered and it requires a
two - thirds vote of the City Council members. It cannot be made if a motion to reconsider
has been previously made. The motion to rescind can be applied to votes on all main
motions with the following exceptions: votes cannot be rescinded after something has
been done as a result of that vote that the City Council cannot undo; or, where a
resignation has been acted upon, or one has been appointed to, or expelled from, a
committee or office, and was present or was officially notified. In the case of expulsion,
the only way to reverse the action afterwards is to restore the person to the committee or
office, which requires the same preliminary steps and vote as is required for the original
appointment.
9.16 To Take Action; Main Motions. Main motions state proposed policy or action on a
substantive issue being considered by the Council. As such, the motion is an initial call
to take particular action. 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 o£ 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.
9.17 Effect of Abstentions; action on required Abstentions; Effect of non - required
Abstentions. The following rules shall apply when a Council Member abstains from
voting on an item:
When the Council Member is Legally Obligated to Abstain.
01 -12 -2016 Revised I I
When a Council Member is legally obligated to abstain from voting pursuant to Texas
Local Government Code Chapter 171, a local ordinance or the City Charter then the
Council Member shall leave the dais and exit City Council Chambers until such time as
the debate and vote on the item has been concluded. The City Secretary shall record that
the Council Member left the room and abstained from the vote in the official minutes and
there shall be no other effect.
When the Council Member as no Legal Obligation to Abstain from Voting_
When a Council Member has no legal obligation to abstain from voting then an
abstention shall be recorded in the minutes as an abstention and shall procedurally be
treated as a "no" vote.
ARTICLE 10.
ENFORCEMENT OF DECORUM
10.1 Warning. All persons other than a recognized speaker shall, at the request of the
presiding officer, be silent. If, after receiving a warning from the presiding officer, a
person persists in disturbing the meeting, the presiding officer may order the person to
leave the meeting. The Chief of Police, or such member or members of the Police
Department or other persons as the presiding officer may designate, shall be sergeant -at-
arms of the Council meetings. If the person so requested does not leave the meeting, the
presiding officer may order the sergeant -at -arms to remove such person.
10.2 Removal. Any designated sergeant -at -arms shall carry out all orders and instructions
given by the presiding officer for the purpose of maintaining order and decorum at the
Council meeting. Upon instruction of the presiding officer, it shall be the duty of the
sergeant -at -arms to remove from the meeting any person who intentionally disturbs the
proceedings of the Council (or successor provision of law).
10.3 Resisting Removal. Any person who resists removal by the sergeant -at -arms shall be
charged with violating Section 42.05 (a) of the Texas Penal Code.
10.4 Motions to Enforce. Any Council member may move to require the presiding officer to
enforce these Rules and the affirmative vote of a majority of the Councilmembers present
and eligible to vote shall require the presiding officer to do so.
10.5 Adjournment. In the event that any meeting is willfully disturbed by a person or groups
of persons so as to render the orderly conduct of such meeting unfeasible and when order
cannot be restored by the removal of the individuals who are creating the disturbance, the
meeting may be adjourned and the remaining business considered at the next regular or a
special meeting or, subject to State law, may be recessed to a set time and date.
ARTICLE 11.
CREATION OF COMMITTEES, BOARDS, AND COMMISSIONS
11.1 Standing Committees. The Council may create committees, boards and commissions to
assist in the conduct of the operation of the City government with such duties as the
Council may specify not inconsistent with the Charter, the Code of Ordinances, or State
01 -12 -2016 Revised 12
law. Membership and selection of members shall be as determined by the Council if not
specified by the Charter, the Code of Ordinances, or State law. No person may
concurrently serve on more than one Board unless, by virtue of his /her position on the
Council, he /she also holds a position on another Board. Persons related within the second
degree by affinity or consanguinity to the Mayor or any member of the Council shall not
be eligible to serve on a standing committee. No standing committee so appointed shall
have powers other than advisory to the Council or to the City Manager, except as
otherwise specified by the Charter, the Code of Ordinances, or State law.
11.2 Special Committees. The Council may, as the need arises, authorize the appointment of
"ad hoc" Council committees. Except where otherwise specifically provided by the
Charter, the Mayor and the City Council shall appoint the members of the special
committees. Any committee so created shall be given a "mission statement" directing its
activities. Any special committee shall cease to exist upon the accomplishment of the
special purpose for which it was created or when abolished by a majority vote of the
Councilmembers present and entitled to vote.
ARTICLE 12.
CITIZENS' RIGHTS
12.1 Addressing the Council. Any person desiring to address the Council by oral
communication shall first secure the permission of the presiding officer.
12.2 Manner of Addressing the Council — Time Limit. Each person addressing the Council
shall speak at the podium into the microphone (or at another designated location), shall
give his/her name and address in an audible tone of voice for the record, and, unless
further time is granted by the Council, shall, subject to Section 12.4 below, limit his /her
remarks to three (3) minutes or less. All remarks shall be addressed to the Council as a
body, and not to any individual member thereof. No person, other than members of the
Council or City staff (when requested by the presiding officer) and the person having the
floor, shall be permitted to enter into any discussion, either directly or through the
members of the Council, unless requested or approved by the presiding officer. No
questions shall be asked the Councilmembers, except through the presiding officer.
Responses to questions may be limited as required by State law.
12.3 Personal and Slanderous Remarks. Any person making personal, impertinent, or
slanderous remarks, or who shall become boisterous, either while addressing the Council
or otherwise while in attendance at a Council meeting, may be requested to leave the
meeting, pursuant to Article 10 of these Rules, and may be removed from the meeting if
necessary for the conduct of the remainder of the meeting.
12.4 Public Hearings. After being recognized by the presiding officer, interested persons, or
their authorized representatives, may address the Council with respect to the subject
matter of a public hearing being conducted. The presiding officer may establish
procedures at a public hearing to limit the amount of time (which, unless modified by the
presiding officer, shall be as set forth in Section 12.2 above) interested persons may
speak, subject to the Councilmembers' right to appeal the presiding officer's ruling
pursuant to Section 9.6. Subject to modification by the presiding officer, and subject to
the Councilmembers' right of appeal pursuant to Section 9.6, the normal order of a public
01 -12 -2016 Revised 13
hearing is as follows: (i) the opening of the hearing and the establishment, if any, of a
modified public hearing procedure by the presiding officer; (ii) address to the Council by
any interested person(s); (iii) discussion by the Mayor and Councilmembers, including
requests for information from City staff or any person(s) who addressed the Council; and
(iv) action by the Council, if any is posted on the agenda relating to the hearing.
12.5 Written Communications. Interested persons, or their authorized representatives, may
address the Council by written communication in regard to any matter concerning the
City's business or over which the Council has control at any time by direct mail or by
addressing the City Secretary, who shall, on the request of the writer, distribute copies to
the Councilmembers.
12.6 Hearing of Residents. There shall be included on the agenda of each City Council
meeting an item labeled "Hearing of Residents ". After being recognized by the presiding
officer, members of the public (giving precedence to residents of the City) may address
the Council on items on or not on the agenda at that time, providing they have completed
the "Hearing of Residents" form, unless authorized by the presiding officer. The form
shall be made available to persons wishing to address the Council prior to the calling of
the meeting to order and such completed form shall be made available to the presiding
officer prior to the calling of the meeting to order. The persons signed up for "Hearing of
Residents" must speak during the "Hearing of Residents" portion of the meeting.
Councilmembers and members of City staff may not discuss unposted items nor take any
action thereon other than to (1) make a statement of factual information, (2) make a
statement of existing City policy, or (3) discuss placing the item on a future agenda.
Persons speaking shall be subject to the time limits set forth in Section 12.2, unless
otherwise authorized by the presiding officer.
ARTICLE 13.
COUNCIL AND STAFF RELATIONS
13.1 City Manager to Provide Information. The City Manager is directly responsible for
providing information to all the Councilmembers concerning any inquiries by a specific
Councilmember. If the City Manager or his staff's time is being dominated or
misdirected by a Councilmember, it is his responsibility to inform the Mayor or the
Council as a whole.
13.2 City Manager's Responses to Requests. The City Manager is expected to respond in a
timely manner to the Council and Councilmember's requests. When information is
requested, the City Manager will estimate a reasonable time frame for collecting the
requested information.
(a) If the City Manager disagrees with the request, he should say so and explain his
position.
(b) If the City Manager disagrees with individual directives, he should initiate
clarification of the Council's will with regard to the individual
Councilmember's request.
01 -12 -2016 Revised 14
(c) The City Manager may delegate responsibility for the response as necessary and
appropriate, but the City Manager will be responsible for its receipt by the
Council in a timely manner.
(d) The City Manager should maintain a checklist and timetable for requests and
other directives of the Council.
(e) All Councilmembers will be provided the same written information when any
matter under consideration may be of general concern to the Council. There will
be no preferential dissemination of information by the City Manager or his staff.
13.3 Directions to City Manager. During meetings of the Council, unless a vote is taken, a
consensus of the Councilmembers present will be required to direct the City Manager to
take any action.
13.4 City Manager's Duty to Inform. The City Manager is responsible for keeping the
Council informed. The Council should be provided weekly reports outlining progress on
outstanding issues as well as information on new issues and opportunities. Additionally,
the Council should be informed of City news prior to release of such information to the
community, newspaper(s), or other governmental entities, etc.
13.5 Customer Concerns. It is the responsibility of the City Manager to establish procedures
for handling customer concerns in all departments with prompt feedback to citizens and
Councilmembers.
13.6 City Manager /Council Relations. The City Manager should strive to maintain positive
relations with the Council by following these guidelines:
(a) Work to establish mutual trust with the Council.
(b) Maintain open lines of communication with the Council and keep Council
informed.
(c) Inform all Councilmembers of educational opportunities, recognizing that an
educated Council is in the City's best interest.
(d) Include the Council in City- sponsored employee social events.
(e) Conduct orientation sessions for new Councilmembers, including a tour of City
buildings and introductions to staff.
Amended: February 2015 — January 12, 2016 with addendum "Standard Rule 16- SR -01"
attached.
01 -12 -2016 Revised 15
Workshop
CITY COUNCIL MEMORANDUM
City Council Meeting: March 22, 2016
Department: Engineering/Public Works
Subject: Workshop — Update on Woman
Hollering Creek Wastewater Line
Project
BACKGROUND
On September 29, 2015, City Council approved an Engineering and Design Contract with Cobb Fendley
and Associates to design the construction of a sanitary sewer system to collect and convey wastewater to
the fixture Cibolo Creek Municipal Authority (CCMA) water reclamation plant to be constructed off of
Trainer Hale Road in southern Schertz.
The system will consist of:
1. A gravity wastewater line initiating at the existing lift station for the Sedona Subdivision west of
FM 1518 near the Woman Hollering Creek that follows the creek for approximately 11,500 feet
where the Woman Hollering Creek intersects with the IH 10 right -of -way.
2. A new lift station at the terminus of the gravity line and approximately 6,000 feet of force main
from the lift station to the CCMA plant.
This system will provide the initial wastewater flow to the new CCMA plant and is necessary for the
plant to begin operation. This will also allow the existing Woman Hollering Lift Station at Sedona and
the small sewer package treatment plant at The Crossvine development to be taken out of service.
Cobb Fendley's Right -of -Way Acquisition Department has been working to acquire Rights -of -Entry from
affected Property Owners to allow the surveyors access to confirm the proposed line route. To date we
have acquired 20 out of 26 Rights -of -Entry needed to complete the survey. The remaining six have not
been acquired yet for a variety of reasons. The properties we are able to enter are currently being
surveyed by Cobb Fendley. The next steps include:
• Finish acquiring the Rights -of -Entry
• Complete Engineering & Design
• Acquire Easements
• Release Project for Public Bidding
• Construction
Projected Completion Goal is late winter 2017.
FISCAL IMPACT
The Engineer's estimate for the project is approximately $5.9 Million and will be funded with a
combination of Capital Recovery and Certificates of Obligation Funds /Water Revenue.
Agenda No. 1
CITY COUNCIL MEMORANDUM
City Council Meeting: March 22, 2016
Department:
Subject:
BACKGROUND
City Secretary
Minutes
The City Council held a Regular Meeting on March 8, 2016.
FISCAL IMPACT
None
RECOMMENDATION
Staff recommends Council approve the minutes of the Regular meeting of March 8, 2016.
ATTACHMENTS
Minutes — Regular meeting of March 8, 2016
MINUTES
REGULAR MEETING
March 8, 2016
A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on March 8,
2016, 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
Executive Director Bob Cantu
City Secretary Brenda Dennis
Call to Order — City Council Regular Session
Mayor Carpenter called the meeting to order at 6:0
Mayor Pro -Tem Cedric Edwards
Councilmember Grumpy Azzoz
Councilmember Robin Thompson
City Manager John Kessel
Executive Director Dudley Wait
City Attorney Charlie Zech
0 P.M.
Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas.
(Mayor Pro-Tern Edwards)
Mayor Pro -Tem Edwards provided the opening prayer followed by the pledges of allegiance to the
flags of the United States and the State of Texas.
Mayor Carpenter announced if there are students in the audience this evening participating in the Hal
Baldwin Scholarship to please be sure to sign in (The sign in sheet is at the back of the room).
City Events and Announcements
• Announcements of upcoming City Events (B. James/D. Wait /B. Cantu)
The following announcements were made:
• Saturday, March 5 through 20 — Annual Spring Cleanup
• Wednesday March 9, Pre - Budget Community Meeting, Sippel Elementary School, 420
Fairlawn, 6:30 p.m.
• Thursday, March 10, Pre - Budget Community Meeting, Corbett Junior High School,
12000 Ray Corbett Drive, 6:30 p.m.
• Thursday, March 10, North East Partnership meeting, Olympia Hills Golf and
Conference Center in Universal City, 11:30 a.m.
• Sunday, March 13 — Daylight Savings Time Begins
• Monday, March 14 -18 — SCUCISD Spring Break
• Tuesday, March 15, Monthly Chamber Luncheon, Schertz Civic Center, 11:30 -1:00 p.m.
RSVP by March 8 to 210 - 619 -1950.
• Wednesday, March 16, Race to the Taste 7th Annual Event, Retama Park 5:00 p.m.
03 -08 -2016 Minutes Page - 1 -
• Friday, March 18 — Employee Remembrance Day, Public Works Department, 10
Commercial Place 12:00 p.m. (noon).
Upcoming Events
• Wednesday, March 2
location TBD.
• Thursday, March 24
location TBD.
• Saturday, March 26
• Saturday, March 26
3 — Staff Pre - Budget Retreat, 8:00 a.m. to 5:00 p.m. The
— City Council Pre - Budget Retreat, 8:00 a.m. to 5:00 p.m. The
- Easter in the Park, Pickrell Park.
- BVYA Opening Day Celebratio
Lastly, Mr. James wished Mayor Carpenter a belated Happy
March 4th as he turned a year wiser.
• Announcements and recognitions by City Manager (J. Kesse
e celebrated
Mayor Carpenter recognized City Manager John Kessel who recognized a team approach
effort. He mentioned the recent Wilenchik Walk event which turned out with great success
this year and kudos to the whole team that put this together. Mr. Kessel stated that they
identified a particular issue which was a public safety issue and not sure which department
discovered it but they had discovered a tree with a very aggressive bee hive and swarm that
was located on the route of the residential area between Jonas Woods and Ashley Place. He
stated that they reported this over to Animal Services who did a great job of enlisting the help
of the Public Works Department, particularly the street crew, to barricade and block off that
area during the event. No incidents occurred. The bees have been removed with the assistance
of the Bee Keeper. Everyone jumped on board with that particular incident and everything
turned out great.
Employee Recognition
• IT Department — Myles C auser, recipient of the Certified Public Manager Certification. (B.
James)
Mayor Carpenter recognized Executive Director Brian James who recognized IT Director Myles
Clauser who recently received his Certified Public Manager Certification. Mr. James provided
information on the duties of IT as well as explained the much recognized Certified Public Manager
Certification Program. Mayor and Council congratulated Myles for his accomplishment. Mr.
Clauser provided his brief comments on the benefits of going through the program and how it will
help the city accomplish their goals.
PrPePntatinn
• Guadalupe Regional Medical Center Prescription Assistance Program report. (D. Wait /Jerry
Riggs)
Mayor Carpenter recognized Dr. Jerry Riggs who presented his semi - annual report to council
with the following data answering questions.
03 -08 -2016 Minutes Page - 2 -
• Total number of patients served by the program
• Total number of Schertz residents served by program
• Total number of prescriptions provided by the program
• Retail dollar value of prescriptions provided by the PAP
• Retail dollar value of prescriptions provided to Schertz residents
• Number of prescriptions per Schertz patient per month
• Average annual retail prescription benefit per Schertz patient
• Schertz contribution to program
• Contributions to program t
• Payments by patients ($15.
• Grants received for the pro
• Other sources of funds (ide
- Rebate from True Trac
- Seguin Noon Lions Ch
- Private
TOTAL REVENUE
TOTAL EXPENSES
TOTAL NET
Mayor Carpenter recognized and thanked
through the program.
Workshop
1176
31
18353
$ 4,311,420.93
$ 177,344.02
3.7
$ 11,441.54
$ 5,000.00
$ 4,019.78
$ 140,037.01
$ 5,000.00
$ 748.08
$ 300.00
$ 2,405.95
$ 157,510.82
$ (326,376.24)
$ (168,865.42)
being provided
• Discussion and possible action regarding approval of the City of Schertz 2016 Strategic Plan.
(J. Kessel/S. Gonzalez)
Mayor Carpenter recognized Assistant to City Manager Sarah Gonzalez who recognized and
thanked Marketing & Communications Specialist, Melissa Geedman for her efforts in the
design of the plan.
Ms. Gonzalez stated our choices matter today and tomorrow. The City of Schertz is facing
continuous growth, new challenges, and increasing expectations of service and performance.
What we do today will shape how we will be and how we will function, as a fully developed
community, in the next twenty to thirty years. What we do today matters more than ever to
our long -term success.
Ms. Gonzalez and City Manager John Kessel provided a PowerPoint presentation regarding
the City of Schertz 2016 Strategic Plan and covered the following highlights:
• Why have a strategic plan? — Simply put, it is our roadmap and compass. We
developed this Strategic Plan to provide overall direction in achieving our desired
future state by outlining our aspirations, actions, and motives. This Plan will be used to
not only chart our course but to also measure our success.
• How can we be strategic?
03 -08 -2016 Minutes Page - 3 -
- We develop master plans to make more informed decisions. Key plans include
land use, parks, thoroughfares, water /sewer, facilities, staffing plans, and financial
forecasts.
- These plans and financial forecasts allow us to make more carefully considered,
structurally balanced, and strategic decisions.
- Aligning these plans and the people who implement the plans
(Boards /Commissions /Staff) is the key to executing strategic decisions at every
level of the organization
First seek clarity and alignment. The 2016 Strategic Plan focuses on defining and
understanding our Policy and Operational Values, as well as our strategic situation.
Before we decide what our goals should be, we must first seek alignment. Otherwise,
it is only by chance that we will prioritize our most important goals. By gaining
alignment first, we have a much more impactful understanding of what matters most
and the direction we need to go. V.Omoe
Vision Mission Values Importance: The Vision, Mission and Values are important
because:
• They frame the City's identity and brand
• They set defined direction for achieving the City's goals and objectives
• They provide clarity when making strategic organizational decisions
• They foster alignment at all levels of the organization
Vision Mission Values:
• Vision: Community. Service. Opportunity.
• Mission: Leading, improving, and serving a livable, sustainable and financially
sound community
• Policy Values: Safe Community, Essential Services, High Quality of Life,
Attractive Community, Economic Prosperity, Fiscally Sustainable
• Operational Values: Systems Management, Engaged Workforce, Innovative,
Proactive, Service Oriented
• Core Values: Do the right thing, Do the best you can, Treat others the way you
want to be treated, work cooperatively as a team.
Policy Values: Policy Values are a reminder of what we are trying to accomplish as a
community, our aspirations. They provide services of benchmark values for
examining the benefits and drawbacks of any project or policy decision in a
consistent manner.
Policy Values: Complete City Model
• Core Services (what we must provide to be a city)
Safe Community
Essential Services
• Quality of Live (what we want to provide to be a desirable city)
- High Quality of Life
Attractive Community
03 -08 -2016 Minutes Page - 4 -
■ Economic Engine (what drives our ability to provide adequately for each)
Economic Prosperity
- Fiscally Sustainable
When we accomplish all three simultaneously, we are a Complete City.
Operational Values:
Operational Values drive the Schertz Management Model and are our pillars
for running a professional organization. They are our dVred best management
practices. 44
They help the City achieve the highest and most sustainable results by focusing
on employees, customers, systems, and processes.
Operational Values: Schertz Management Model
■ The Schertz Management Model incorporates our five Ope onal Values,
each of which represents an essential component of oif desired best
management practices.
■ It is how we envision managing the City to achieve the highest and most
sustainable results.
Establishing a Clear Description — Is /Is Not /Why Analysis (Samples were provided
in the PowerPoint) M ,,,,
■ T r description, To reach n a agreed upon desc ption, Council /Staff conducted aquestion -based
analysis for each of the Policy and Operational Values. The analysis
accomplished the following:
- Described the Value by What it is;
- Described the Value by What it is not; and
- Why the Value was relevant or important to the City
■ Within the analysis, - Council and Staff each developed their own Why
Statements which are identified as Policy and Operational, respectively
Strengths Weaknesses Opportunities Threats Analysis (SWOT) (Samples were
provided in the PowerPoint)
• The SWOT Analysis tool helps the City to honestly look at all areas of the
organization, not only where we excel, but also those areas where we can do
better.
• By looking at both internal and external factors, a SWOT Analysis lends itself
to looking for ways we can take advantage of strengths and opportunities or
mitigate weaknesses and potential threats.
03 -08 -2016 Minutes Page - 5 -
• By updating the SWOT Analysis annually, the City can maintain a current and
relevant strategic understanding of the organization, even during times of
dynamic change.
Schertz Vision for Excellence Model
• The Schertz Vision for Excellence Model incorporates our Vision, Mission, and
Values with our Policy Values, Operational Values, and Core Values into an
easily recognizable and meaningful model.
• This Model is how we integrate our leadership aspirations in a way that is
readily understandable both within the organizatio and outside to our citizens
and stakeholders.
Team Approach 4 04%. "
Communicating our Vision, Mission, and Values at every level requires an ability to
explain the rationale behind them and to engage our entire organization in a genuine
exchange of perspectives.
The City of Schertz Strategic Plan seeks to create alignment within our organization.
This can then lead to inspiring the entire team to champion execution of our Plan.
Mayor and Councilmembers provided their input/ feedback and positive comments regarding
the work staff and Council accomplished to develop the plan.
wr
Mayor Carpenter recognized Mayor Pro -Tem Edwards who moved, seconded by
Councilmember Thompson to approve the 2016 City of Schertz Strategic Plan as presented.
The vote was unanimous with Mayor Pro -Tem Edwards, Councilmembers Fowler,
Azzoz, John and Thompson voting for and no one voting no. Motion passed.
Hearing of Residents
No one spoke.
Discussion and Action Items
1. Minutes - Consideration and/or action regarding the approval of the minutes of the Regular
Meeting of March 1, 2016. (J. Kessel/B. Dennis)
Mayor Carpenter recognized Mayor Pro -Tem Edwards who moved, seconded by
Councilmember Fowler to approve the minutes of the Regular Meeting of March 1, 2016. The
vote was unanimous with Mayor Pro -Tem Edwards, Councilmembers Fowler, Azzoz,
John and Thompson voting for and no one voting no. Motion passed.
2. Resolution No. 16 -R -23 — Consideration and/or action approving a Resolution authorizing
the appointment of members to the Alamo Area Council of Governments (AACOG) Regional
Emergency Preparedness Advisory Committee. (D. Wait /D. Wait)
03 -08 -2016 Minutes Page - 6 -
The following was read into record:
RESOLUTION NO. 16 -R -23
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
APPOINTING MEMBERS TO THE ALAMO AREA COUNCIL OF GOVERNMENTS
REGIONAL EMERGENCY PREPAREDNESS ADVISORY COMMITTEE AND
OTHER MATTERS IN CONNECTION THEREWITH
Mayor Carpenter recognized Executive Director Dudley Wait who stated the Alamo Area
Council of Governments ( AACOG) was established in 1967 under Chapter 391 of the Local
Government Code as a voluntary association of local governments and organizations that
serves its members through planning, information, and coordination activities. AACOG serves
the Alamo Area/State Planning Region 18, which covers 13 counties and 12,582 square miles.
Counties comprising the area planning region are Atascosa, Bandera, Bexar, Comal, Frio,
Gillespie, Guadalupe, Karnes, Kendall, Kerr, Medina, McMullen, and Wilson counties.
a.
AACOG's mission is to enhance the quality of life of all residents of the Alamo Region in
partnership with elected and appointed officials, funders, community partners and
beneficiaries. AACOG has several standing and advisory committees and one of the
committees is their Regional Emergency Preparedness Advisory Committee (REPAC).
REPAC establishes and updates the regional priorities of funding for projects applying for the
State Homeland Security Grant funds. The priorities will be based upon state guidelines and
regional planning assessments conducted by the REPAC.
The City has an opportunity to place a member onto REPAC as a voting member giving us a
voice in how t funding and policy decisions are made going forward.
Staff recommends Council appoint Assistant Fire Chief, Kade Long, as the City's
representative to serve on REPAC, and appoint Police Lieutenant, John Correu, as first
alternate, and EMS Operations Manager, Toni Bradford, as second alternate.
Mayor Carpenter recognized Mayor Pro -Tem Edwards who moved, seconded by
Councilmember Thompson to approve Resolution No. 16 -R -23. The vote was unanimous
with Mayor Pro -Tem Edwards, Councilmembers Fowler, Azzoz, John and Thompson
voting for and no one voting no. Motion passed.
3. Resolution No. 16 -R -24 — Consideration and/or action approving a Resolution authorizing an
amendment to the hlterlocal Agreement with the City of Cibolo regarding Dispatch Services.
(D. Wait/M. Carey /M. Clauser)
The following was read into record:
RESOLUTION NO. 16 -R -24
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING AN AMENDMENT OF AN INTERLOCAL AGREEMENT FOR
03 -08 -2016 Minutes Page - 7 -
DISPATCH SERVICES WITH THE CITY OF CIBOLO, TEXAS, AND OTHER
MATTERS IN CONNECTION THEREWITH
Mayor Carpenter recognized Police Lt. Mike Carey who stated the City entered into an inter -
local agreement (ILA) with the City of Cibolo for public safety /law enforcement dispatch
services on October 1, 2010. Under this agreement, the City furnishes all dispatch services for
all calls received requesting City of Cibolo public safety services. The City furnishes all
capital equipment and facilities necessary to render dispatch services, including all
prerequisite governmental licenses, permits, and personnel, except that the City of Cibolo is
responsible for obtaining and providing mobile and portable radi apable of operating on
the City of Schertz's radio frequency.
The agreement was amended on July 7, 2015, to allow the City of Cibolo to place equipment
on the City's radio tower. This equipment served to improve connectivity allowing for
enhanced public safety response.
Both Cities desire to further amend the agreement to more clearly define the services and
processes provided for under this agreement. A summary of the changes are outlined below:
1. Creation of a joint advisory board to include the Police and Fire Chiefs of each
participating municipality for the purpose of meeting periodically to make non - binding
recommendations for the operation and training within the communication center.
2. Ownership of records and data maintained by the City of Schertz on behalf of the City of
Cibolo shall remain the property of the City of Cibolo.
3. Upon receipt of written authorization, the City of Cibolo may place equipment necessary
to obtain access to Dispatch Service and station altering. Cibolo shall be responsible for
maintenance and repair of equipment placed on the City of Schertz property.
4. Cibolo and Schertz agree to
'Aw
A. Contact their respective IT Departments for support
B. Work cooperatively to e4&We timely resolution of issues.
C. Maintain equipment in a manner which will ensure delivery and ability to receive
dispatch services
D. Provide at least three (3) days advance notice of maintenance or other activities which
will result in outages as well as develop plans to address said outages.
E. Ensure security and protection of each agencies networks and to advise one another of
any breaches to their networks.
F. No agency will have access to one another's networks except to provide the necessary
service contained in the ILA.
G. Each agency will assume their own risk and liability for any connection to the
network.
03 -08 -2016 Minutes Page - 8 -
H. Establish protocols to ensure dispatch services will continue in the event that
connectivity is lost.
I. In the event of the termination of the contract, Schertz will allow Cibolo access to the
data /media for as long as necessary.
1) To comply with the Texas Open Records Act.
2) Cibolo will be responsible for any cost related to converting or cleansing data
contained within the SQL data base.
5. Both parties agree to meet directly on May 31St of each calendar year to evaluate the
sufficiency of payments for future Dispatch Services.
A. Should the workload volume increase to the point that extra staff is needed, Schertz
may, after consultation with Cibolo, increase the quarter fees.
B. Notifications of such increases will be made to Cibolo, in writing, at least ninety (90)
days prior to the effective day of the increase.
No other changes will be made to the agreement. It is the City's desire to partner with the City
of Cibolo to foster excellence in providing high - quality public safety dispatch services to
Schertz and surrounding communities. This amendment will enable the City to provide
enhanced services to Cibolo, resulting in more effective and efficient law enforcement
dispatch. Lt. Carey addressed questions from Council. Lt. Carey stated that staff recommends
approval.
Mayor Carpenter recognized Councilmember Fowler who moved, seconded by Mayor Pro-
Tern Edwards to approve Resolution No. 16 -R -24. Mayor Pro -Tem Edwards,
Councilmembers Fowler, Azzoz, John and Thompson voting for and no one voting no.
Motion passed.
Roll Call Vote Confirmation
Mayor Carpenter recognized City Seclefy Brenda Dennis who provided the roll call votes for the
workshop and agenda items 1 -3. 4
Requests and Announcements
4. Announcements by City Manager
• Citizen Kudos
• Recognition of City employee actions
• New Departmental initiatives
No further announcements were provided.
5. Future Agenda Item Request for City Council: This is an opportunity for City Council
members to request that items be placed on a future agenda. No discussion of the merits of
the item may be taken at this time. Should a Council Member oppose placement of the
03 -08 -2016 Minutes Page - 9 -
requested item on a future agenda, the Mayor, without allowing discussion, shall ask for the
consensus of the other City Council members to place or not place the item on a future
agenda.
Mayor Carpenter recognized Councilmember Thompson who stated that back in November he
had requested the possibility of staff looking into revising the sign ordinance regarding
political signs and written permission needed to be obtained before those could be put up and
would like to have an update so that if that takes place it could be done before the next
election.
Mayor Carpenter stated that Councilmember Azzoz previously asked to have a review of the
sign ordinance with regards to business signage and so we can combine this issue when staff
comes before us. He mentioned there are some changes that are coming up because of a
decision by the Supreme Court and we can roll all this into a single presentation. Executive
Director Brian James stated that staff is shooting for April 5`�'
6. 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 o
Mayor Carpenter recognized Mayor Pro -Tem Edwards who stated he wanted to congratulate
Councilmember John on his recent victory as the next Tax Assessor Collector of Guadalupe
County. 1�1
Mayor Carpenter recognized Councilmember Fowler who stated he attended a recent ribbon
cutting at Delightful Decors and commented on how unique the businesses was and that he
was excited that we have this type of diversification here in Schertz. As we grow, we want to
see different businesses come in that the city itself will be able to take advantage of.
Mayor Carpenter recognized Councilmember John who thanked all those that supported him
in the recent election. He is humbled and appreciative of all the support. The number one
question has been is he moving to Seguin? He is not moving. He is staying in Schertz.
Schertz is his hometown and he is not leaving.
Mayor Carpenter recognized Councilmember Thompson who commended the city staff on
their recent Pre - Budget meeting and thinking outside of the box striving to include our
citizens in a more dynamic way. He encouraged our citizens to attend the next two meetings
that are scheduled this week.
Councilmember Thompson also congratulated and commended staff on the success of the
Wilenchik Walk for Life event which was held this past weekend.
03 -08 -2016 Minutes Page - 10 -
Mayor Carpenter also congratulated Councilmember John on his win in the Primary Election
as Guadalupe County Tax Assessor Collector. Rumor says it has been at least 130 years since
someone in this end of the County has held a County -wide position in Guadalupe County, so
that marks a rather radical change in the landscape of our County. He looks forward to the
things that Mr. John will do for the entire County in the same manner he has done work for
the City of Schertz.
7. Information available in City Council Packets - NO DISCUSSION TO OCCUR
Adi
Ma),
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Z
Schertz Economic Development Corporation
2015 Tax Year reimbursement per City's Development Agreement with Caterpillar
b 2015 Tax Year reimbursement per City's Development Agreement with Capital Group
03 -08 -2016 Minutes page - 11 -
Agenda No. 2
CITY COUNCIL MEMORANDUM
City Council Meeting: March 22, 2016
Department: Finance Department
Subject: Resolution No. 16 -R -26 - Comprehensive
Annual Financial Report - CAFR Fiscal
Year 2014 -15
BACKGROUND
Presentation and consideration and/or action regarding the Fiscal Year 2014 -15 Comprehensive
Annual Financial Report (CAFR) by Debbie Fraser, CPA of Armstrong, Vaughan & Associates.
State law requires that local governments complete an annual audit by an independent licensed
public accounting firm.
COMMUNITY BENEFIT
The annual audit provides the community assurance the city is in good financial standing and
operating in compliance with generally accepted accounting principles and governmental
accounting standards.
FISCAL IMPACT
None
RECOMMENDATION
Staff recommends approval of Resolution No. 16 -R -26 regarding the Fiscal Year 2014 -15
Comprehensive Annual Financial Report
ATTACHMENTS
Resolution No. 16 -R -26
Comprehensive Annual Financial Report
RESOLUTION NO. 16 -R -26
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING THE APPROVAL OF THE
COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL
YEAR 2014 -15, AND OTHER MATTERS IN CONNECTION
THEREWITH
WHEREAS, the City staff of the City of Schertz (the "City ") has recommended that the
City Council approve the Comprehensive Annual Financial Report for Fiscal Year 2014 -15 ; and
WHEREAS, the Audit Committee has recommended that it is in the best interest of the
City to approve the Comprehensive Annual Financial Report for Fiscal Year 2014 -15; and
WHEREAS, the City Council has determined that it is in the best interest of the City to
approve the Comprehensive Annual Financial Report for Fiscal Year 2014 -15.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
THAT:
Section 1. The City Council hereby authorizes the approval of the Comprehensive
Annual Financial Report for Fiscal Year 2014 -15.
Section 2. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a
part of the judgment and findings of the City Council.
Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved herein.
Section 4. This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Section 5. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the application
of such provision to other persons and circumstances shall nevertheless be valid, and the City
Council hereby declares that this Resolution would have been enacted without such invalid
provision.
Section 6. It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Resolution, was
given, all as required by Chapter 551, Texas Government Code, as amended.
Section 7. This Resolution shall be in force and effect from and after its final
passage, and it is so resolved.
PASSED AND ADOPTED, this 22nd day of March, 2016.
CITY OF SCHERTZ, TEXAS
Michael R. Carpenter, Mayor
ATTEST:
City Secretary, Brenda Dennis
(CITY SEAL)
50506221.1 - 2 -
CITY OF SCHERTZ, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2015
OFFICIALS ISSUING REPORT
John C. Kessel
City Manager
Juan F. Santoya, Jr.
Director of Finance
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CITY OF SCHERTZ, TEXAS
TABLE OF CONTENTS
SEPTEMBER 30, 2015
PAGE
INTRODUCTORY SECTION ........................................................................... ............................... i
LETTER OF TRANSMITTAL ............................................................................................. .............................ii
CITYOFFICIALS .............................................................................................................. ............................... x
ORGANIZATIONALCHART ......................................................................................... ............................... xi
CERTIFICATE OF ACHIEVEMENT ................................................................................ ............................xii
FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT .......................................................................... ............................... 2
MANAGEMENTS DISCUSSION AND ANALYSIS ........................................................ ..............................5
BASIC FINANCIAL STATEMENTS ............................................................................... .............................14
STATEMENT OF NET POSITION ................................................................................... .............................15
STATEMENT OF ACTIVITIES ........................................................................................ .............................17
BALANCE SHEET - GOVERNMENTAL FUNDS ......................................................... .............................19
RECONCILIATION OF BALANCE SHEET .................................................................... .............................21
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
GOVERNMENTALFUNDS ............................................................................................. .............................22
RECONCILIATION OF THE STATEMENT OF REVENUES, GOVERNMENTAL FUNDS TO
THE STATEMENT OF ACTIVITIES ............................................................................. ...............................
24
STATEMENT OF NET POSITION - PROPRIETARY FUNDS ...................................... .............................25
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION -
PROPRIETARY FUNDS ............................................................................................. .............................27
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS ..................................... .............................28
NOTES TO BASIC FINANCIAL STATEMENTS ......................................................... ............................... 30
REQUIRED SUPPLEMENTARY INFORMATION ...................................................... ............................... 59
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - GENERAL FUND ....................................................... ............................... 60
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - ECONOMIC DEVELOPMENT CORPORATION ..... ............................... 62
NOTES TO SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCE - BUDGET AND ACTUAL .................................................................. ............................... 63
SCHEDULE OF CHANGES - NET PENSION LIABILITY AND RELATED RATIOS ......................... 64
SCHEDULE OF CITY CONTRIBUTIONS ................................................................. ............................... 65
RETIREE HEALTH INSURANCE PLAN - ANALYSIS OF FUNDING PROGRESS ............................. 66
SUPPLEMENTARY INFORMATION ............................................................................ ............................... 67
COMPARATIVE BALANCE SHEETS - GENERAL FUND ..................................... ............................... 68
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCE- GENERAL FUND ............................................................................... ............................... 69
COMPARATIVE BALANCE SHEETS - ECONOMIC DEVELOPMENT CORPORATION .................. 70
i
CITY OF SCHERTZ, TEXAS
TABLE OF CONTENTS
SEPTEMBER 30, 2015
FINANCIAL SECTION (Continued)
PAGE
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - ECONOMIC DEVELOPMENT CORPORATION ................. ...............................
71
COMPARATIVE BALANCE SHEETS - DEBT SERVICE FUND ............................ ...............................
72
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET TO ACTUAL - DEBT SERVICE FUND ................................................. ...............................
73
COMPARATIVE BALANCE SHEETS - CAPITAL PROJECTS FUND ................... ...............................
74
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCE - CAPITAL PROJECTS FUND ............................................................. ...............................
75
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS ..... ...............................
76
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES — NONMAJOR GOVERNMENTAL FUNDS ..................................... ...............................
78
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET
TO ACTUAL - HOTEL OCCUPANCY FUND ........................................................ ...............................
80
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET TO ACTUAL - PARK FUND ................................................................... ...............................
81
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET TO ACTUAL - TREE MITIGATION FUND .......................................... ...............................
82
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET TO ACTUAL - POLICE FORFEITURES FUND .................................... ...............................
83
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET TO ACTUAL - LIBRARY ADVISORY BOARD ................................... ...............................
84
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET TO ACTUAL - HISTORICAL COMMITTEE FUND ............................. ...............................
85
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET TO ACTUAL - PARKS AND RECREATION FOUNDATION ............. ...............................
86
STATISTICAL SECTION
NETPOSITION, BY COMPONENT ...................................................................... ...............................
CHANGE IN NET POSITION ................................................................................. ...............................
FUND BALANCES - GOVERNMENTAL FUNDS ............................................... ...............................
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS ....................... ...............................
TAX REVENUE BY SOURCE — GOVERNMENTAL FUNDS ............................ ...............................
TOTAL WATER AND SEWER CONSUMPTION AND RATES ......................... ...............................
PRINCIPAL WATER AND SEWER CONSUMERS ............................................. ...............................
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY ...............
DIRECT AND OVERLAPPING PROPERTY TAX RATES ................................. ...............................
PRINCIPAL PROPERTY TAX PAYERS ............................................................... ...............................
PROPERTY TAX LEVIES AND COLLECTIONS ................................................ ...............................
TAXABLEASSESSED VALUE ............................................................................. ...............................
RATIOS OF OUTSTANDING DEBT BY TYPE ................................................... ...............................
RATIOS OF GENERAL BONDED DEBT OUTSTANDING ................................ ...............................
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT ......... ...............................
DEBT MARGIN INFORMATION .......................................................................... ...............................
PLEDGED REVENUE COVERAGE ...................................................................... ...............................
DEMOGRAPHIC AND ECONOMIC STATISTICS .............................................. ...............................
ii
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103
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105
106
108
109
110
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112
CITY OF SCHERTZ, TEXAS
TABLE OF CONTENTS
SEPTEMBER 30, 2015
STATISTICAL SECTION (Continued)
PAGE
TOP TEN PRINCIPAL EMPLOYERS ........................................... ............................... ............................113
FULL -TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION ....................114
OPERATING INDICATORS BY FUNCTION/PROGRAM ......... ............................... ............................115
CAPITAL ASSET STATISTICS BY FUNCTION! PROGRAM .... ............................... ............................117
COMPLIANCE SECTION
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED
IN ACCORDANCE WITH GO VERNMENT A UDITING STANDARDS ................... ............................120
iii
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INTRODUCTORY SECTION
iv
SCHIERTZ OCOMMUNITY
PPORTUNITY
March 11, 2016
To the Honorable Mayor, City Council, and the Citizens of City of Schertz:
State law requires that local governments publish a complete set of financial statements presented in
conformity with generally accepted accounting principles in the United States of America (U.S.
GAAP) and audited in accordance with generally accepted auditing standards in the United States
of America by a firm of licensed certified public accountants. Pursuant to that requirement, we
hereby issue the comprehensive annual financial report of the City of Schertz for the fiscal year
ended September 30, 2015.
This report consists of management's representations concerning the finances of the City of Schertz.
Consequently, management assumes full responsibility for the completeness and reliability of all the
information presented in this report. To provide a reasonable basis for making these
representations, management of the City of Schertz has established a comprehensive internal control
framework that is designed both to protect the government's assets from loss, theft, or misuse and to
compile sufficient reliable information for the preparation of the City of Schertz's financial
statements in conformity with U.S. GAAP. Because the cost of internal controls should not
outweigh their benefits, the City of Schertz comprehensive framework of internal controls has been
designed to provide reasonable rather than absolute assurance that the financial statements will be
free from material misstatement. As management, we assert that, to the best of our knowledge and
belief, this financial report is complete and reliable in all material respects.
The City of Schertz's financial statements have been audited by Armstrong, Vaughan & Associates
P.C. a firm of licensed certified public accountants. The goal of the independent audit was to
provide reasonable assurance that the financial statements of the City of Schertz for the fiscal year
ended September 30, 2015, are free of material misstatement. The independent audit involved
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation. The independent auditor
concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified
opinion that the City of Schertz's financial statements for the fiscal year ended September 30, 2015,
are fairly presented in conformity with U.S. GAAP. The independent auditor's report is presented
as the first component of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD &A). This letter of transmittal is designed to complement MD &A and should be read in
conjunction with it. The City of Schertz's MD &A can be found immediately following the report of
the independent auditors.
1400 Schertz Parkway ,t Schertz, Texas 78154 ,t 210.619.1000 * schertz.com
v
Profile of the Government
The City of Schertz, incorporated in 1958, is located in the central part of Texas, which is
considered to be a top growth area in the state, and one of the top growth areas in the country. The
City of Schertz currently occupies a land area of 32.21 square miles with a population of 37,865 in
2015. The City of Schertz is empowered to levy a property tax on both real and personal properties
located within its boundaries. It also is empowered by state statue to extend its corporate limits by
annexation, which occurs periodically when deemed appropriate by the governing body.
The City of Schertz has operated under the council- manager form of government since November
30, 1972. Policymaking and legislative authority are vested in a City Council consisting of the
mayor and 5 other members. The City Council is responsible for establishing public policy on City
matters by the passage of appropriate ordinances and resolutions. The City Manager is responsible
for overseeing the day -to -day operations of the government, implementing policy established by
City Council, and for appointing the heads of the various departments. The council is elected on a
non - partisan basis. Council members serve two -year staggered terms, with two council members
elected every two years. The mayor is elected to serve a two -year term. The mayor and all five
council members are elected at large.
The City of Schertz provides a full range of services, including police and fire protection, EMS
services, the construction and maintenance of streets, recreational facilities, cultural events, water
and sewer services.
The annual budget and five -year forecast serve as the foundation for the City of Schertz's financial
planning and control. All city departments are required to submit requests for appropriation to the
City Manager by June of each year. The City Manager uses these requests as the starting point for
developing a proposed budget. The City Manager then presents the proposed budget to the council
for review before August 1 st. The council then holds public hearings and community meetings on
the proposed budget and to adopt a final budget by September 30th. The fiscal year for Schertz is
from October 1 through September 30. The appropriated budget is prepared by each department
(e.g. police). Department heads may make transfers of appropriations within a department. The
City Manager may make transfers between departments and funds with City Council approval.
Budget to actual comparisons are provided in this report for each individual governmental fund for
which an appropriated annual budget has been adopted. For the general fund, this comparison is
presented on pages 60 -63 as part of the required supplementary information.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the City of
Schertz operates.
Local economy. The City of Schertz enjoys a favorable economic environment and leading
indicators point to continued growth. In December 2015, the unemployment rate was 2.9 %. Within
a 15 mile radius, the labor market includes a workforce of approximately 530,000 well trained
workers and this number is expected to increase in the next several years as the region continues to
experience population and business growth. Schertz is located in the San Antonio -New Braunfels
Metropolitan Area which has an estimated employment of 1.1 million people as of December 2015.
Schertz' own estimated employment for the same time period is 17,361 which is 0.53% higher than
the year prior. Local indicators point to a strong and growing housing market. The City planned
well and has an abundant water supply for meeting its future growth.
vi
In the last few years, five Fortune 100 companies have made major investments in Schertz. These
five companies include General Electric, Caterpillar, Amazon.com, SYSCO and FedEx. General
Electric purchased Salof Companies which designs and manufactures small scale liquefied natural
gas technologies and occupies a 390,935 square foot facility in Schertz. The purchase of Salof will
allow General Electric to expand their worldwide capabilities in the liquefied natural gas industry.
Amazon.com completed construction of their $166 million fulfillment center on 96 acres in Schertz
in time for the 2013 holiday season. The fulfillment center has 1.26 million square feet and is the
largest facility in Schertz and in Guadalupe County. The new fulfillment center is expected to have
350 new full -time jobs with an annual payroll of $11 million. SYSCO completed their 630,000
square foot distribution facility in January 2012 and employs 810 full -time staff. This is a regional
distribution center for SYSCO. FedEx Ground completed a 202,000 square foot facility which will
be used to serve the San Antonio region.
In addition, Titan Industrial Park, an award winning project through San Antonio Business Journal,
completed its first phase in 2015. The space was 82% leased upon completion and the second phase
has already begun. Businesses with headquarters or divisions located within the city or in close
proximity include Vision Works, Brandt Engineering, Cal -Tex Protective Coatings, Inc., CST
Distribution which was formerly Valero, FedEx Freight, Marshall Shredding Company, Kraft
Nabisco, Republic National Distributing Company, Caterpillar, Wal -Mart, and H.E.B.
Long -term financial planning. The community approved bond propositions in November 2010 for
quality of life projects which included an aquatics facility, improvements to the baseball fields and
soccer fields, building a new animal adoption facility, and improvements to Main Street. The only
remaining projects are the aquatics facility and Main Street improvements. Design work was
completed for the aquatic facility and is scheduled to break ground in 2016 while the Main Street
improvements continue to be developed.
In November 2015, the City placed 2 bond propositions before the voters totaling $15 million. $7
million was for FM road ways which the City will partner with the Texas Department of
Transportation, who will provide matching funds, and $8 million for a new Fire Station located in
the southern portion of Schertz.
Current Year Budget Initiatives. In FY 2014 -15, the City's main initiatives that had a major
budget impact were in capital purchases, new hires, and employee compensation. The City
budgeted for vehicle replacements, 1/3 of the Firefighters' Self Contained Breathing Apparatus, and
building repairs. New capital equipment was purchased through a $3 million tax note in early 2015
for public works and emergency medical services. Also authorized were 2 seasonal park workers, a
new accountant, 2 mechanics, and a building maintenance worker. The City budget for
compensation increases over $500,000 that included 2% merit raise to eligible employees and a
market adjustment based on a salary survey.
Financial Information:
Internal Control. Management is responsible for establishing and maintaining internal controls
designed to ensure that assets of the City are protected from loss, theft or misuse and to provide
adequate accounting information compiled to allow for the preparation of financial statements in
conformity with generally accepted accounting principles for local governments as prescribed by
the Governmental Accounting Standards Board (GASB), the Financial Accounting Standards Board
(FASB) and the American Institute of Certified Public Accountants (AICPA). The internal control
system is designed to provide reasonable, but not absolute assurance that these objectives are met.
vii
The concept of reasonable assurance recognizes that the cost of an internal control should not
exceed the benefits derived from the internal control. The City utilizes financial accounting
software which is designed with a system of internal controls. These controls are continually being
reevaluated to provide reasonable, but not absolute, assurances.
Budget Controls. The City also utilizes budgetary controls. Legally expenditures cannot exceed
the appropriated amount. The objective of these budgetary controls is to ensure compliance with
the adopted budget approved by the City Council as mandated by the city charter and state law. The
levels of budgetary control are established at the line -item basis and at the fund level.
Cash management policies and practices. During the year, temporarily idle cash was invested
through State local investment pools. Cash available for longer term investments was invested in
agency bonds and certificates of deposit. Cash in the State local investment pools are essentially
liquid. Longer term investments had an average maturity of 1.21 years. The average yield on the
investment portfolio was .26 percent. Active involvement in investment instruments was limited
due to the continuation of extremely low interest rates and market uncertainty. The rate of return
was simply not sufficient to justify the management expense.
Risk Management. During 2015, the City continued a risk management program for worker's
compensation. Various control techniques, including employee accident prevention training, have
been implemented during the year to minimize accident- related losses. Third -party coverage is
currently maintained for individual worker's compensation claims and all other potential losses.
Additional information on the City of Schertz's risk management activity can be found in the notes
to the financial statements.
Pension benefits. The City of Schertz is a member city of the Texas Municipal Retirement System,
referred to as TMRS. TMRS is one of the leading public pension funds in the nation. Each year, an
independent actuary engaged by the pension plan calculates the amount of the annual contribution
the City of Schertz must make to the pension plan to ensure the plan will be able to fully meet its
obligations to retired employees on a timely basis. As a matter of policy, the City of Schertz fully
funds each year's annual required contribution to the pension plan as determined by the actuary.
The remaining unfunded amount is being systematically funded as part of the annual required
contribution calculated by the actuary.
Other Financial Information:
Independent Audit. An independent audit is performed every year of the general ledger, accounts,
financial records, and transactions of all city departments. The audit is completed by an
independent certified public accounting firm selected by the City Council. The City is in
compliance with this requirement and the independent auditor's report by Armstrong, Vaughan,
P.C. Certified Public Accountants, has been included in this report.
Awards and Acknowledgements _
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Schertz for its
comprehensive annual financial report for the fiscal year ended September 30, 2014. This was the
30th consecutive year that the City has received this prestigious award. In order to be awarded a
Certificate of Achievement, the City must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
viii
A Certificate of Achievement is valid for a period of one year only. We believe our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another
certificate.
The preparation of this report would not have been possible without the efficient and dedicated
services of the entire staff of the finance department. We would like to express our appreciation to
all members of the department who assisted and contributed to the preparation of this report.
In addition, without the assistance of each and every department head on staff, we would have none
of the successes we've enjoyed. Credit also must be given to the Mayor and the City Council for
their unfailing support for the City Manager and staff.
Respectfully submitted,
John C. Kessel
City Manager
lx
Juan F. Santoya
Finance Director
CITY OF SCHERTZ, TEXAS
CITY OFFICIALS
MAYOR MICHAEL CARPENTER
MAYOR PRO -TEM JIM FOWLER
CITY COUNCIL GRUMPY AZZOZ
CEDRIC EDWARDS, SR.
rgo : �i 0: [o] LVA I aYs)ONI
DARYL JOHN
CITY MANAGER JOHN C. KESSEL
DIRECTOR OF FINANCE JUAN F. SANTOYA, JR.
CITY ATTORNEY CHARLES ZECH,
DENTON, NAVARRO, ROCHA, BERNAL, HYDE & ZECH, P.C.
CITY AUDITOR ARMSTRONG, VAUGHAN & ASSOCIATES, P.C.
x
CITY OF SCHERTZ
ORGANIZATIONAL CHART
Citizens
Executive Director
Executive Director Executive Director Executive Director
Services Economic Development pperations Development
*Appointed by City Council
X1
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Schertz
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2014
Executive Director /CEO
xii
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FINANCIAL SECTION
SHAREHOLDERS:
Nancy L. Vaughan, CPA
Deborah F. Fraser, CPA
Phil S. Vaughan, CPA
To the Honorable Mayor and
Members of the City Council
City of Schertz, Texas
4D Armstrong, Vaughan & Associates, P.C.
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of City of Schertz, as of and for
the year ended September 30, 2015, and the related notes to the financial statements, which collectively
comprise City of Schertz's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
City of Schertz's management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity's preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
941 West Byrd Blvd., Suite 101 • Universal City, Texas 78148
Phone: 210 - 658 -6229 • Fax: 2.10 -659 -7611 -Email: vaughan@avacpa.com . www.avacpa.com
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business -type activities, each major fund, and the
aggregate remaining fund information of City of Schertz, as of September 30, 2015, and the respective
changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance
with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note IS to the financial statements, in October 2014, the City adopted a new accounting
guidance from the Governmental Accounting Standards Board Statement No. 68 related to accounting for
pensions. This resulted in a restatement of the prior year balances. Our opinion is not modified with respect
to the matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management's
discussion and analysis, budgetary comparison information, schedule of changes in net pension liabilities and
related ratios and the schedule of contributions, as listed in the table of contents, be presented to supplement
the basic financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. The budgetary comparison information is the responsibility of management and was
derived from and relate directly to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures applied in the audit of
the basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the budgetary
comparison information is fairly stated, in all material respects, in relation to the basic financial statements as
a whole. We have applied certain limited procedures to the management's discussion and analysis and the
schedule of changes in net pension liabilities and related ratios and the schedule of contributions in
accordance with auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or
provide any assurance on management's discussion and analysis and schedule of changes in net pension
liabilities and related ratios and the schedule of contributions because the limited procedures do not provide
us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise City of Schertz's basic financial statements. The combining and individual nonmajor fund
financial statements, introductory section, and statistical section are presented for purposes of additional
analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements are the responsibility of management and
were derived from and relate directly to the underlying accounting and other records used to prepare the
basic financial statements. Such information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion, the
combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in
relation to the basic financial statements as a whole. The introductory and statistical sections have not been
subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly,
we do not express an opinion or provide any assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 11, 2016 on
our consideration of City of Schertz's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering City of Schertz's internal control over financial reporting and
compliance.
Armstrong, Vaughan & Associates, P.C.
March 11, 2016
4
MANAGEMENTS DISCUSSION AND ANALYSIS
As management of the City of Schertz, we offer readers of the City's financial statements this narrative
overview and analysis of the financial activities of the City of Schertz for the fiscal year ended
September 30, 2015. We encourage readers to consider the information presented here in conjunction with
additional information that we have furnished in our letter of transmittal, which can be found in the
introductory section of this report.
Financial Highlights
The assets of the City of Schertz exceeded its liabilities at the close of the most recent fiscal year by $157
million (net position). Of this amount, $16 million (unrestricted net position) may be used to meet the
City's ongoing obligations to citizens and creditors.
The City's total net position increased by $16.8 million. A significant portion of this increase, 58 %, is
attributable to capital contributions from developers.
As of the close of the current fiscal year, the City's governmental funds reported combined ending fund
balances of $31.1 million, an increase of $3.7 million in comparison with the prior year.
At the end of the fiscal year, the combined total of the General Fund assigned and unassigned fund
balances was $8 million which is 39.6% of the general fund expenditures not including capital outlay. The
fund balance policy is to have a 25% balance.
During the fiscal year, the City issued $245 thousand in tax notes in the governmental activities and $1.88
million in tax notes for water and sewer improvements.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements.
The City's basic financial statements comprise three components: 1) government -wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains
other supplementary information in addition to the basic financial statements themselves.
Government -wide financial statements. The government -wide financial statements are designed to provide
readers with a broad overview of the City's finances, in a manner similar to a private- sector business.
The statement of net position presents information on all of the City's assets and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net position may
serve as a useful indicator of whether the financial position of the City of Schertz is improving or
deteriorating.
The statement of activities presents information showing how the City's net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving to
the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.
uncollected taxes and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City of Schertz that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business -type activities). The governmental activities of the City of Schertz include general
government, public safety, streets and parks, health, and culture and recreation. The business -type
activities of the City of Schertz include a water and sewer department and an emergency medical services
department.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City of Schertz, like other
state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -
related legal requirements. The funds of the City of Schertz can be divided into two categories:
governmental and proprietary.
Governmental funds. Governmental funds are used to account for essentially the same functions reported
as governmental activities in the government -wide financial statements. However, unlike the government -
wide financial statements, governmental fund financial statements focus on near term inflows and outflows
of spendable resources, as well as on balances of spendable resources available at the end of the fiscal
year. Such information is useful in evaluating a government's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long -term impact of the government's near -term financing decisions.
Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures,
and changes in fund balances provide a reconciliation to facilitate this comparison between governmental
funds and governmental activities.
The City of Schertz maintains eleven individual governmental funds. Information is presented separately
in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures,
and changes in fund balances for the general fund, the debt service fund, the economic development
corporation and the capital projects fund, all of which are considered to be major funds. Data from the
other seven governmental funds are combined into a single, aggregated presentation. Individual fund data
for each of these non -major governmental funds is provided in the form of combining statements
elsewhere in this report.
Proprietary funds. The City of Schertz maintains one type of proprietary fund. Enterprise funds are used to
report the same functions presented as business -type activities in the government -wide financial
statements. The City of Schertz uses enterprise funds to account for its water and sewer department and
for its emergency medical services department.
Proprietary funds provide the same type of information as the government -wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for the water and
sewer department and for the emergency medical services department, both of which are considered to be
major funds of the City of Schertz.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements.
Other information. In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning the City's general fund budgetary
schedule. The City of Schertz adopts an annual appropriated budget for its general fund. A budgetary
comparison schedule has been provided for the general fund to demonstrate compliance with this budget.
The economic development corporation also adopts an annual budget, and a comparison schedule for it
also is provided in the required supplementary information.
6
The combining statements referred to earlier in connection with non -major governmental funds are
presented immediately following the required supplementary information.
Government -wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the City of Schertz, assets exceeded liabilities by $157 million at the close of the
most recent fiscal year.
The largest portion of the City's total net position (81 %) reflects its net investment in capital assets (e.g.,
land, buildings, machinery, and equipment) less any related debt used to acquire those assets that is still
outstanding, plus bond proceeds that have not yet been signed. The City of Schertz uses these capital
assets to provide services to citizens; consequently, these assets are not available for operational type of
future spending. Although the City's investment in its capital assets is reported net of related debt, it
should be noted that the resources needed to repay this debt must be provided from other sources, since the
capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City's total net position (9 %) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position, $16 million,
may be used to meet the government's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City of Schertz is able to report positive balances in all three
categories of net position, both for the government as a whole, as well as for its separate governmental and
business -type activities. The same situation held true for the prior fiscal year.
TABLE A -1
NET POSITION
Note — The year 2014 has not been restated for GASB Statement No. 68 adopted October 1, 2014.
7
Governmental Activities
Business -Type Activities
Total
2015
2014
2015
2014
2015
2014
Current and Other Assets
$ 35,838,626
$ 32,058,111
$ 25,354,617
$ 22,393,677
$ 61,193,243 $
54,451,788
Capital Assets
114,639,271
111,550,067
69,019,208
64,553,475
183,658,479
176,103,542
Total Assets
150,477,897
143,608,178
94,373,825
86,947,152
244,851,722
230,555,330
Deferred Outflows
2,510,327
969,012
637,418
146,807
3,147,745
1,115,819
Current Liabilities
7,139,217
7,021,924
4,631,940
4,011,930
11,771,157
11,033,854
Long -Term Liabilities
62,661,129
55,747,628
16,485,531
12,956,604
79,146,660
68,704,232
Total Liabilities
69,800,346
62,769,552
21,117,471
16,968,534
90,917,817
79,738,086
Deferred Inflows
78,341
-
24,645
-
102,986
-
Net Investment in
Capital Assets
68,125,738
62,792,671
59,625,205
53,674,437
127,750,943
116,467,108
Restricted
13,343,280
10,401,728
-
-
13,343,280
10,401,728
Unrestricted
1,640,519
8,613,239
14,243,922
16,450,988
15,884,441
25,064,227
Total Net Position
$ 83,109,537
$ 81,807,638
$ 73,869,127
$ 70,125,425
$ 156,978,664 $
151,933,063
Note — The year 2014 has not been restated for GASB Statement No. 68 adopted October 1, 2014.
7
The government's net position increased by $16.8 million during the current fiscal year. Fifty -eight
percent of this increase represents capital contributions from developers. The following table indicates
changes in net position for governmental and business -type activities followed by graphs displaying total
revenues and expenses by type:
TABLE A -2
CHANGES IN NET POSITION FOR GOVERNMENTAL AND BUSINESS -TYPE ACTIVITIES
Revenues:
Program Revenues:
Charges for Services
Operating Contributions
Capital Contributions
General Revenues
Property Taxes
Other Taxes
Investment Earnings
Miscellaneous
Total Revenues
Governmental Activities
2015 2014
Business -Type Activities
2015 2014
Total
2015 2014
$ 5,589,948
$ 5,771,078
$ 25,115,495
$ 23,681,625
$ 30,705,443
$ 29,452,703
336,252
220,264
-
-
336,252
220,264
5,509,530
5,756,456
4,158,552
2,809,110
9,668,082
8,565,566
14,139,037
12,794,172
-
-
14,139,037
12,794,172
13,186,298
13,219,062
-
-
13,186,298
13,219,062
56,820
43,243
47,728
31,810
104,548
75,053
197,881
180,316
344,731
609,003
542,612
789,319
39,015,766
37,984,591
29,666,506
27,131,548
68,682,272
65,116,139
Expenses:
General Government
6,443,227
6,958,530
6,443,227
6,958,530
Public Safety
10,836,712
10,025,703
10,836,712
10,025,703
Public Environment
3,876,644
3,740,538
3,876,644
3,740,538
Parks and Recreation
2,164,604
1,807,136
2,164,604
1,807,136
Cultural
892,194
870,159
892,194
870,159
Health
470,468
407,114
470,468
407,114
Administration
1,845,877
1,942,312
1,845,877
1,942,312
Interest and Other Fees
2,226,635
2,352,856
2,226,635
2,352,856
Water and Sewer
-
-
18,440,959
17,762,116
18,440,959
17,762,116
EMS
4,719,526
4,268,125
4,719,526
4,268,125
Total Expenses
28,756,361
28,104,348
23,160,485
22,030,241
51,916,846
50,134,589
INCREASE IN NET POSITION
BEFORE TRANSFERS
10,259,405
9,880,243
6,506,021
5,101,307
16,765,426
14,981,550
Transfers
(42,235)
(50,000)
42,235
50,000
CHANGE IN NET POSITION $ 10,217,170 $ 9,830,243 $ 6,548,256 $ 5,151,307 $ 16,765,426 $ 14,981,550
Note — The year 2014 has not been restated for GASB Statement No. 68 adopted October 1, 2014 as the
information is unavailable.
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
TOTAL REVENUES- GOVERNMENT -WIDE
Charges for Operating Capital Grants Property Taxes Other Taxes Unrestricted Miscellaneous
Services Grants and and Investment
Contributions Contributions Earnings
8
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
TOTAL EXPENSES - GOVERNMENT -WIDE
General Public Safety Public Parks and Cultural Health Interest and
Government Environment Recreation Administration Other Fees
Revenues - Governmental Activities (Continued)
General Revenue by Source -Governmental Activities
Miscellaneous 3%
Occupancy Tax,, 2%
Franchise Ta�y9% I Investment
° H Earnings 0%
Property Tay, 59%
Sa /es a nd Use Tay
27%
66
Business -Type Activities
Business -Type activities accounted for 39.3% of the growth in the net position of the City of Schertz. Of
this increase, 64% is the result of capital contributions from developers. For the most part, increases in
expenses closely paralleled inflation and the change in revenues was primarily related to fluctuations in
capital contributions from developers.
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$(5,000,000)
2015 2014
Water and Sewer Utilities EMS
10
Financial Analysis of the Government's Funds
As noted earlier, the City of Schertz uses fund accounting to ensure and demonstrate compliance with
finance - related legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on near -term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's
financing requirements. In particular, unassigned fund balance may serve as a useful measure of a
government's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund
balances of $31.1 million. Of this total amount, $7.3 million constitutes unassigned fund balance, which is
available for spending at the government's discretion. The remainder of fund balance is non - spendable,
restricted, or assigned to indicate that it is not available for new spending because it has already been
committed to pay debt service, for capital improvement projects, and other assigned purposes.
The general fund is the chief operating fund of the City of Schertz. At the end of the current fiscal year,
unassigned fund balance of the general fund was $7.3 million, while total fund balance was $9.6 million,
an increase of $1.9 million from the prior year. As a measure of the general fund's liquidity, it may be
useful to compare both unassigned fund balance and total fund balance to total fund expenditures.
Unassigned fund balance represents 36.3% of total general fund expenditures, not including capital.
The debt service fund has a total fund balance of $0.9 million all of which is restricted for the payment of
debt service. The net increase in fund balance during the current year in the debt service fund was $0.2
million.
The capital projects fund has a total fund balance of $8.9 million, a decrease of $.7 million. No new
governmental bonds were issued this year, so the activity in the capital projects fund is primarily the
expenditures of prior bond issuances. The City did issue Tax Notes of $245 thousand.
Proprietary funds. The City's proprietary funds provide the same type of information found in the
government -wide financial statements, but in more detail. Unrestricted net position of the water and sewer
fund at the end of the year amounted to $15.2 million and those for the Schertz EMS fund amounted to
$(.6) million.
General Fund Budgetary Highlights
The General Fund expenditures were $1.9 million less than the $22.8 million budget. This was the result
of cost savings across most of the General Fund. Revenues were lower by $26 thousand than budgeted.
Overall, the fund balance increased by $1.5 million higher than budgeted. The original budget was
amended during the year to decrease total expenditures by I%.
11
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The City's investment in capital assets for its governmental and business -type activities as
of September 30, 2015, amounts to $184 million (net of accumulated depreciation). Developers
contributed $8.6 million in infrastructure during the year. The City also has several projects in progress
from voter approved bonds. Additional information on the City's capital assets can be found in the note 6
to the basic financial statements.
TABLE A -3
CAPITAL ASSETS
(Net of Depreciation)
Long -Term Debt. At the end of the current fiscal year, the City of Schertz had total bonded debt
outstanding of $67.8 million. The related principal and interest payment for the bonds are backed by an
annual ad valorem tax levied against all taxable property within the City. The City of Schertz maintains a
"AA +" rating from Standard and Poors. Additional information on the City's long -term debt can be found
in note 9 to the basic financial statements.
TABLE A -4
Governmental
Business -Type
Activities
Activities
Total
2015
2014
2015
2014
2015
2014
Land
$ 7,499,108
$ 7,445,117
$ 1,354,138
$ 1,276,852
$ 8,853,246
$ 8,721,969
Water Rights
-
-
70,245
70,245
70,245
70,245
Buildings and Improvements
39,307,995
39,116,202
4,660,001
4,660,001
43,967,996
43,776,203
Machinery, Equipment,
and Vehicles
8,407,375
8,126,722
4,470,642
3,640,274
12,878,017
11,766,996
Infrastructure
94,102,513
87,983,067
82,119,240
77,985,687
176,221,753
165,968,754
Construction in Progress
5,880,125
4,995,655
2,964,135
1,651,694
8,844,260
6,647,349
Accumulated Depreciation
(40,557,845)
(36,152,696)
(26,619,193)
(24,722,278)
(67,177,038)
(60,874,974)
TOTALS
$ 114,639,271
$ 111,514,067
$ 69,019,208
$ 64,562,475
$ 183,658,479
$ 176,076,542
Long -Term Debt. At the end of the current fiscal year, the City of Schertz had total bonded debt
outstanding of $67.8 million. The related principal and interest payment for the bonds are backed by an
annual ad valorem tax levied against all taxable property within the City. The City of Schertz maintains a
"AA +" rating from Standard and Poors. Additional information on the City's long -term debt can be found
in note 9 to the basic financial statements.
TABLE A -4
12
Governmental
Business -Type
Activities
Activities
Total
2015 2014
2015 2014
2015
2014
General Obligation Bonds
$ 52,300,000 $ 55,300,000
$ 3,485,000 $ 3,960,000
$ 55,785,000
$ 59,260,000
Certificates of Obligation
277,801 543,934
8,837,200 9,436,066
9,115,001
9,980,000
Tax Notes and Leases
1,210,000 1,585,000
1,640,000 65,000
2,850,000
1,650,000
TOTALS
$ 53,787,801 $ 57,428,934
$13,962,200 $13,461,066
$ 67,750,001
$ 70,890,000
12
Economic Factors and Next Year's Budgets and Rates
At the end of the last fiscal year, the assigned and unassigned fund balance in the general fund increased to
$8.0 million. The City of Schertz has not appropriated any portion of this amount for spending in the 2016
fiscal year budget. The intention is to build up the assigned and unassigned fund balance to 3 to 6 months
of operating expenses. Each year the City updates its five -year budgeting forecast and has implemented a
long term debt model to assist management in making informed financial decisions that will impact the
community now and in the future.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with an
interest in the government's finances. Questions concerning any of the information provided in this report
or requests for additional financial information should be addressed to the Office of the Finance Director,
City of Schertz, 1400 Schertz Parkway, Schertz, Texas 78154.
13
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BASIC FINANCIAL STATEMENTS
14
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2015
ASSETS
Current Assets:
Cash and Cash Equivalents
Investments
Receivables (net of allowances)
Taxes
Accounts and Other
Accrued Interest Income
Prepaid Expenses
Inventories
Internal Balances
Total Current Assets
Noncurrent Assets:
Restricted Assets:
Cash and Cash Equivalents
Investments
Capital Assets:
Land
Water Rights
Buildings and Improvements
Equipment and Vehicles
Infrastructure
Construction in Progress
Accumulated Depreciation
Total Noncurrent Assets
TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES
Deferred Loss on Debt Refundings
Deferred Pension Related Outflows
TOTAL DEFERRED OUTFLOWS
OF RESOURCES
Primary Government
Governmental Business -Type
Activities Activities Total
$ 2,687,815
28,189,639
2,571,225
2,054,270
1,983
16,000
101,084
(254,966)
35,367,050
471,576
7,499,108
39,307,995
8,407,375
94,102,513
5,880,125
(40,557,845)
115,110,847
150,477,897
$ 1,216,648
4,192,991
3,552,280
5,863
351,950
207,510
254,966
9,782,208
2,162,967
13,409,442
1,354,138
70,245
4,660,001
4,470,642
82,119,240
2,964,135
(26,619,193)
84,591,617
94,373,825
$ 3,904,463
32,382,630
2,571,225
5,606,550
7,846
367,950
308,594
45,149,258
2,634,543
13,409,442
8,853,246
70,245
43,967,996
12,878,017
176,221,753
8,844,260
(67,177,038)
199,702,464
244,851,722
890,548 127,870 1,018,418
1,619,779 509,548 2,129,327
$ 2,510,327
See Accompanying notes to basic financial statements.
15
$ 637,418
$ 3,147,745
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION (CONTINUED)
SEPTEMBER 30, 2015
Noncurrent Liabilities:
Compensated Absences
747,605
Primary Government
954,905
Net Other Post - Employment Benefit Payable
Governmental
Business -Type
430,580
Net Pension Liability
Activities
Activities
Total
LIABILITIES
51,076,145
12,868,823
63,944,968
Current Liabilities:
62,661,129
16,485,531
79,146,660
Accounts Payable
$ 1,878,393
$ 1,973,143 $
3,851,536
Accrued Liabilities
445,687
150,096
595,783
Due to Other Governments
162,714
-
162,714
Unearned Revenue
42,418
416,939
459,357
Accrued Interest Payable
451,375
68,044
519,419
Compensated Absences
186,901
51,825
238,726
Customer Deposits
58,450
522,596
581,046
Current Portion of Long -Term Debt
3,913,279
1,449,297
5,362,576
Total Current Liabilities
7,139,217
4,631,940
11,771,157
Noncurrent Liabilities:
Compensated Absences
747,605
207,300
954,905
Net Other Post - Employment Benefit Payable
327,390
103,190
430,580
Net Pension Liability
10,509,989
3,306,218
13,816,207
Long -Term Debt
51,076,145
12,868,823
63,944,968
Total Noncurrent Liabilities
62,661,129
16,485,531
79,146,660
TOTAL LIABILITIES
69,800,346
21,117,471
90,917,817
DEFERRED INFLOWS OF RESOURCES
Deferred Pension Related Inflows
78,341
24,645
102,986
NET POSITION
Net Investment In Capital Assets
68,125,738
59,625,205
127,750,943
Restricted For:
Police and Municipal Court
1,177,895
-
1,177,895
PEG Capital Fees
509,535
-
509,535
Tourism Development
848,969
-
848,969
Economic Development
9,541,457
-
9,541,457
Parks and Tree Mitigation
672,700
-
672,700
Debt Service
454,993
-
454,993
Scholarships and Other Purposes
137,731
-
137,731
Unrestricted
1,640,519
14,243,922
15,884,441
TOTAL NET POSITION
$ 83,109,537
$ 73,869,127
$ 156,978,664
See Accompanying notes to basic financial statements.
16
CITY OF SCHERTZ, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions and Programs Expenses Services Contributions Contributions
Primary Government:
Governmental Activities:
General Government
Public Safety
Public Environment
Parks and Recreation
Cultural
Health
Administration
Interest
Total Governmental Activities
Business -Type Activities
Water and Sewer
EMS
Total Business -Type Activities
Total Primary Government
General Revenues:
Taxes:
Ad Valorem
Sales
Franchise Fees
Hotel/Motel
Mixed Drink
Investment Earnings
Miscellaneous
Total General Revenues
Transfers
Change in Net Position
Net Position at Beginning of Year
Prior Period Adjustment
Net Position at End of Year
$ 6,443,227
$ 1,840,547 $
144,076 $
5,498,973
10,836,712
2,603,476
82,726
-
3,876,644
-
-
-
2,164,604
794,003
93,632
-
892,194
325,178
3,628
-
470,468
26,744
12,190
10,557
1,845,877
-
-
-
2,226,635
-
-
-
28,756,361
5,589,948
336,252
5,509,530
18,440,959
20,700,369
-
4,158,552
4,719,526
4,415,126
-
-
23,160,485
25,115,495
-
4,158,552
$ 51,916,846
$ 30,705,443 S
336,252 $
9,668,082
See Accompanying notes to basic financial statements.
17
Net (Expense) Revenue and
Changes in Net Position
Primary Government
Governmental Business -Type
Activities Activities Total
$ 1,040,369
-
$ 1,040,369
(8,150,510)
-
(8,150,510)
(3,876,644)
-
(3,876,644)
(1,276,969)
-
(1,276,969)
(563,388)
-
(563,388)
(420,977)
47,728
(420,977)
(1,845,877)
344,731
(1,845,877)
(2,226,635)
392,459
(2,226,635)
(17,320,631)
(42,235)
(17,320,631)
$
6,417,962
6,417,962
6,548,256
(304,400)
(304,400)
70,125,425
6,113,562
6,113,562
(17,320,631)
6,113,562
(11,207,069)
14,139,037
-
14,139,037
10,315,125
-
10,315,125
2,263,783
-
2,263,783
563,734
-
563,734
43,656
-
43,656
56,820
47,728
104,548
197,881
344,731
542,612
27,580,036
392,459
27,972,495
(42,235)
42,235
-
10,217,170
6,548,256
16,765,426
81,807,638
70,125,425
151,933,063
(8,915,271) (2,804,554) (11,719,825)
$ 83,109,537 $ 73,869,127 $ 156,978,664
18
CITY OF SCHERTZ, TEXAS
BALANCE SHEET - GOVERNMENTAL FUNDS
SEPTEMBER 30, 2015
See Accompanying notes to basic financial statements.
19
General
Capital
Debt
Fund
Projects
Service
ASSETS
Cash and Cash Equivalents
$ 268,784
$
919,471
$
50,741
Investments
8,796,303
8,773,689
796,437
Receivables (net of allowances)
Taxes
1,860,970
-
59,190
Accounts and Other
2,048,709
5,011
-
Inventory
101,084
-
-
Prepaid Items
-
-
-
Restricted Assets:
Cash and Cash Equivalents
471,576
-
-
TOTAL ASSETS
$ 13,547,426
$
9,698,171
$
906,368
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts Payable
$ 913,100
$
772,675
$
-
Accrued Salaries and Benefits
437,755
-
-
Customer Deposits
58,450
-
-
Due to Other Governments
162,714
-
-
Due to Other Funds
254,057
909
-
Unearned Revenues
42,418
-
-
Total Liabilities
1,868,494
773,584
-
Deferred Inflows of Resources:
Unavailable Revenues
2,062,445
-
59,190
Fund Balances:
Nonspendable:
Inventory
101,084
-
-
Prepaid Items
-
-
-
Restricted for:
Police and Public Safety
189,464
-
-
Municipal Court
683,558
-
-
PEG Capital Fees
509,535
-
-
Capital Improvement
-
8,924,587
-
Debt Service
-
-
847,178
Tourism Development
-
-
-
Parks and Tree Mitigation
-
-
-
Historical Committee and Library
-
-
-
Economic Development
-
-
-
Scholarships
60,944
-
-
Assigned for:
Property Replacement
785,005
-
-
Special Events
6,657
-
-
Unassigned
7,280,240
-
-
Total Fund Balances
9,616,487
8,924,587
847,178
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
$ 13,547,426
$
9,698,171
$
906,368
See Accompanying notes to basic financial statements.
19
Economic
Nonmajor
Total
Development
Governmental
Governmental
Corporation
Funds
Funds
$ 595,001
$ 853,818
$ 2,687,815
8,635,228
1,187,982
28,189,639
611,869
39,195
2,571,224
1,983
550
2,056,253
-
-
101,084
-
16,000
16,000
- - 471,576
$ 9,844,081 $ 2,097,545 $ 36,093,591
$ 14,402 $ 178,216 $ 1,878,393
7,932 - 445,687
- - 58,450
- - 162,714
- - 254,966
- - 42,418
22,334 178,216 2,842,628
2,121,635
- - 101,084
- 16,000 16,000
- 304,873
494,337
- -
683,558
- -
509,535
- -
8,924,587
- -
847,178
- 848,969
848,969
- 672,700
672,700
- 76,787
76,787
9,821,747 -
9,821,747
- -
60,944
- -
785,005
- -
6,657
- -
7,280,240
9,821,747 1,919,329
31,129,328
$ 9,844,081 $ 2,097,545
$ 36,093,591
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CITY OF SCHERTZ, TEXAS
RECONCILIATION OF BALANCE SHEET
SEPTEMBER 30, 2015
TOTAL FUND BALANCE - TOTAL GOVERNMENTAL FUNDS
Amounts reported for governmental activities in the Statement of Net Position
are different because:
Capital Assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds.
Other long -term assets are not available to pay for current- period expenditures
and, therefore, are not recognized as revenue in the funds.
The governmental funds report other post - employment benefit contributions as
expenditures when they become due and payable. However, in the statement of
activities differences between other post - employment benefit contributions and
actuarially determined costs are reported as an obligation.
Long -term liabilities, including bonds payable and capital leases, are not due and
payable in the current period and therefore, not reported in the funds:
Bonds Payable
Unamortized Premiums, Discounts, Losses on Refundings
Capital Lease Payable
Accrued Interest Payable
Compensated Absences
Net Pension Liabilities (and related deferred inflows and outflows of
resources) do not consume current financial resources are not
reported in governmental funds:
Net Pension Liability
Pension Related Deferred Outflows
Pension Related Deferred Inflows
TOTAL NET POSITION - GOVERNMENTAL ACTIVITIES
See accompanying notes to basic financial statements.
21
$ 31,129,328
114,639,271
2,121,636
(327,390)
(53,787,801)
(219,580)
(91,495)
(451,375)
(934,506) (55,484,757)
(10,509,989)
1,619,779
(78,341) (8,968,551)
$ 83,109,537
CITY OF SCHERTZ, TEXAS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
REVENUES
Taxes
Permits and Fees
Service Fees
Fines and Fees
Intergovernmental
Investment Earnings
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current:
General Government
Public Safety
Public Environment
Parks and Recreation
Cultural
Health
Administration
Capital Outlay
Debt Service:
Principal
Interest and Fiscal Charges
Bond Issue Costs
TOTAL EXPENDITURES
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Issuance of Debt
Transfers In
Transfers Out
TOTAL OTHER FINANCING
SOURCES (USES)
Net Change in Fund Balance
Fund Balances at Beginning of Year
Fund Balances at End of Year
General
Fund
Capital
Projects
Debt
Service
Fund
$ 17,926,685 $
- $ 5,415,059
1,447,814
- -
1,609,917
- -
1,498,887
- -
233,959
159,648 -
24,369
13,723 2,575
571,416
6,000 -
23,313,047
179,371 5,417,634
5,187,335 - -
10,037,830 - -
952,663 - -
1,182,906 - -
795,436 - -
404,008 - -
1,638,429 - -
637,800 1,650,298 -
31,875 - 3,471,133
8,341 - 2,088,796
4,842 3,150
20,876,623 1,655,140 5,563,079
2,436,424 (1,475,769) (145,445)
245,000
569,147
(541,971) (45,537)
367,188
(541,971) 768,610 367,188
1,894,453 (707,159) 221,743
7,722,034 9,631,746 625,435
S 9,616,487 $ 8,924,587 $ 847,178
See accompanying notes to basic financial statements.
22
Other
Economic
Nonmajor
Total
Development
Governmental
Governmental
Corporation
Funds
Funds
$ 3,442,819
$ 563,734
$ 27,348,297
-
283,488
1,731,302
-
187,234
1,797,151
-
35,701
1,534,588
-
-
393,607
14,461
1,251
56,379
1,478
54,532
633,426
3,458,758
1,125,940
33,494,750
279,980
115,126
5,582,441
-
120,571
10,158,401
-
-
952,663
-
475,291
1,658,197
-
25,710
821,146
-
-
404,008
351,812
66,405
2,056,646
-
26,570
2,314,668
415,000
-
3,918,008
15,609
-
2,112,746
-
-
7,992
1,062,401
829,673
29,986,916
2,396,357
296,267
3,507,834
-
-
245,000
-
52,785
989,120
(367,188)
(76,659)
(1,031,355)
(367,188)
(23, 874)
202,765
2,029,169
272,393
3,710,599
7,792,578
1,646,936
27,418,729
$ 9,821,747 $
1,919,329
$ 31,129,328
23
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CITY OF SCHERTZ, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES,
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2015
NET CHANGE IN FUND BALANCES - GOVERNMENTAL FUNDS
Amounts reported for governmental activities in the Statement of Activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. In addition, capital assets contributed to governmental
activities are not recorded on the fund statements.
Capital Outlay
Capital Contributions
Depreciation Expense
2,409,007
5,498,973
(4,723,036)
Proceeds from capital asset dispositions produce current financial resources in the fund
statements, while the net gain (loss) is recognized in the Statement of Activities. This
is net book value of capital assets disposed.
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds.
The issuance of long -term debt (e.g. bonds, leases) provides current financial resources
to governmental funds, which the repayment of the principal of long -term debt consumes
the current financial resources of governmental funds. Neither transaction, however, has
any affect on net position. This amount is the net effect of these differences in the
treatment of long -term debt and related items.
Proceeds from the Issuance of Debt (245,000)
Principal Repayments 3,918,008
Amortization of Premiums, Discounts, Losses (1,159)
Governmental funds report required contributions to employee pensions
as expenditures. However, in the Statement of Activities the cost of
the pension is recorded based on the actuarially determined cost of the
plan. This is the amount that actuarially determined pension
expense exceeded contributions.
Some expenses reported in the Statement of Activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds:
Compensated Absences (67,707)
Net Other Postemployment Benefits (47,625)
Accrued Interest (107,908)
CHANGE IN NET POSITION - GOVERNMENTAL ACTIVITIES
See accompanying notes to basic financial statements.
24
3,710,599
3,184,944
(95,740)
22,038
3,671,849
(53,280)
(223,240)
$ 10,217,170
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
SEPTEMBER 30, 2015
ASSETS
Current Assets:
Cash and Cash Equivalents
Investments
Accounts Receivable, Net of Allowance:
Customer Accounts
Due from Other Funds
Accrued Interest
Prepaid Expenses
Inventory
Total Current Assets
Noncurrent Assets:
Restricted Assets:
Cash and Cash Equivalents
Investments
Capital Assets:
Land
Water Rights
Buildings and Improvements
Machinery, Equipment, and Vehicles
Infrastructure
Construction in Progress
Less: Accumulated Depreciation
Total Noncurrent Assets
TOTAL ASSETS
Business -Type Activities - Enterprise Funds
Water
and Sewer Schertz
System EMS Total
$ 1,216,648
$ -
$ 1,216,648
4,192,991
-
4,192,991
2,305,445
1,246,835
3,552,280
385,413
-
385,413
5,863
-
5,863
350,000
1,950
351,950
47,754
159,756
207,510
8,504,114
1,408,541
9,912,655
2,162,967
-
2,162,967
12,526,310
883,132
13,409,442
1,354,138
-
1,354,138
70,245
-
70,245
4,653,501
6,500
4,660,001
2,804,323
1,666,319
4,470,642
82,119,240
-
82,119,240
2,964,135
-
2,964,135
(25,465,214)
(1,153,979)
(26,619,193)
83,189,645
1,401,972
84,591,617
91,693,759 2,810,513 94,504,272
Governmental
Activities
Internal
Service
Fund
DEFERRED OUTFLOWS OF RESOURCES
Deferred Loss on Refunding 127,870 - 127,870 -
Deferred Pension Related Outflows 203,777 305,771 509,548
TOTAL DEFERRED OUTFLOWS $ 331,647 $ 305,771 $ 637,418 $ -
See accompanying notes to basic financial statements.
25
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION - PROPRIETARY FUNDS (CONTINUED)
SEPTEMBER 30, 2015
LIABILITIES
Current Liabilities:
Accounts Payable
Accrued Liabilities
Customer Deposits
Accrued Interest Payable
Due to Other Funds
Unearned Revenue
Current Portion of Compensated Absences
Current Portion of Long -Term Debt
Total Current Liabilities
Noncurrent Liabilities:
Compensated Absences
Net Other Post - Employment Benefit Payable
Net Pension Liability
Long -Term Debt (Net of Current
Portion)
Total Noncurrent Liabilities
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
Governmental
Business -Type Activities - Enterprise Funds Activities
Water
14,789
Internal
and Sewer
Schertz
Service
System
EMS
Total Fund
347,037
59,625,205 -
Unrestricted, Deficit
$ 1,768,983
$ 204,160
$ 1,973,143 $ -
45,490
104,606
150,096 -
522,596
-
522,596 -
65,462
2,582
68,044 -
-
130,447
130,447 -
416,911
28
416,939 -
20,566
31,259
51,825 -
1,189,756
259,541
1,449,297 -
4,029,764
732,623
4,762,387 -
82,265
125,035
207,300 -
41,137
62,053
103,190 -
1,322,211
1,984,007
3,306,218 -
12,056,561
812,262
12,868,823 -
13,502,174
2,983,357
16,485,531 -
17,531,938
3,715,980
21,247,918 -
Deferred Pension Related Inflows
9,856
14,789
24,645 -
NET POSITION
Net Investment in Capital Assets
59,278,168
347,037
59,625,205 -
Unrestricted, Deficit
15,205,444
(961,522)
14,243,922 -
TOTAL NET POSITION
$ 74,483,612
$ (614,485)
$ 73,869,127 $ -
See accompanying notes to basic financial statements.
26
CITY OF SCHERTZ, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Business -Type Activities - Enterprise Funds
Water
and Sewer Schertz
System EMS Total
OPERATING REVENUES
Governmental
A ._a:_.:4.,_,.
internai
Service
Fund
Fees Charged to Users
$ 20,676,850
$ 4,415,126
$ 25,091,976
$ -
Charges for Premiums
-
-
-
2,088,488
Other Charges
23,519
-
23,519
-
TOTAL OPERATING REVENUES
20,700,369
4,415,126
25,115,495
2,088,488
OPERATING EXPENSES
2,566,864
Personnel Services
2,072,063
3,335,908
5,407,971
2,088,488
Contribution to Joint Ventures
1,378,081
-
1,378,081
-
Water Purchase
2,982,781
-
2,982,781
-
Garbage Contractor
3,883,243
-
3,883,243
-
Sewage Treatment
3,104,722
-
3,104,722
-
General and Administrative
2,075,569
528,276
2,603,845
-
Contractual Services
135,617
123,299
258,916
-
Supplies and Maintenance
284,521
480,386
764,907
-
Depreciation
2,064,700
219,064
2,283,764
-
TOTAL OPERATING EXPENSES
17,981,297
4,686,933
22,668,230
2,088,488
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Investment Earnings
Lease Income
Miscellaneous
Interest Expense
Amortization and Bond Issue Costs
TOTAL NONOPERATING
REVENUES (EXPENSES)
INCOME BEFORE CONTRIBUTIONS
AND TRANSFERS
Transfers In (Out)
Capital Contributions
CHANGE IN NET POSITION
NET POSITION AT BEGINNING OF YEAR
2,719,072 (271,807) 2,447,265
46,714
1,014
47,728
140,636
-
140,636
120,104
83,991
204,095
(428,912)
(14,805)
(443,717)
(30,750)
(17,788)
(48,538)
(152,208)
52,412
(99,796)
2,566,864
(219,395)
2,347,469
43,703
(1,468)
42,235
4,158,552
-
4,158,552
6,769,119
68,836,080
(220,863)
1,289,345
6,548,256
70,125,425
Prior Period Adjustment (1,121,587) (1,682,967) (2,804,554) -
NET POSITION AT YEAR END, (Deficit) $ 74,483,612 $ (614,485) $ 73,869,127 $ -
See accompanying notes to basic financial statements.
27
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Cash Flows From Operating Activities:
Cash Received From Customers and Users
Cash Received from Interfund Services
Cash Paid to Employees for Services
Cash Paid to Supplier for Goods & Services
Net Cash Provided (Used) by
Operating Activities
Cash Flows From Noncapital Financing Activities
Cash Advances From/(To) Other Funds
Net Cash Provided (Used) by
Noncapital Financing Activities
Cash Flows From Capital and Related
Financing Activities:
Acquisition and Construction of Capital Assets
Interest Paid on Long -Term Debt
Transfers from Other Funds for Projects
Proceeds from Bonds Issued
Bond Issuance Costs Paid
Principal Paid on Long -Term Debt
Net Cash Provided (Used) by Capital and
Related Financing Activities
Cash Flows From Investing Activities:
Purchase of Investments
Payments from Leases
Interest and Investment Earnings
Net Cash Provided (Used) by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year:
Cash and Cash Equivalents
Restricted Cash and Cash Equivalents
Cash and Cash Equivalents at End of Year:
Cash and Cash Equivalents
Restricted Cash and Cash Equivalents
(13,859,889) (1,306,111) (15,166,000)
5,846,920 24,025 5,870,945
547,837 110,660 658,497
547,837 110,660 658,497
(2,420,901)
(154,746)
(2,575,647)
Governmental
Business -Type
Activities - Enterprise
Funds
Activities
Water
980,000
900,000
Internal
and Sewer
Schertz
(48,538)
Service
System
EMS
Total
Fund
$ 21,763,703
$ 4,636,702
$ 26,400,405
$ -
-
-
-
2,088,488
(2,056,894)
(3,306,566)
(5,363,460)
(2,088,488)
(13,859,889) (1,306,111) (15,166,000)
5,846,920 24,025 5,870,945
547,837 110,660 658,497
547,837 110,660 658,497
(2,420,901)
(154,746)
(2,575,647)
(427,092)
(12,947)
(440,039)
43,703
-
43,703
980,000
900,000
1,880,000
(30,750)
(17,788)
(48,538)
(1,194,755)
(261,207)
(1,455,962)
(3,049,795) 453,312 (2,596,483)
(3,908,253) (883,132) (4,791,385)
140,636 - 140,636
43,965 1,014 44,979
(3,723,652) (882,118) (4,605,770)
(378,690) (294,121) (672,811)
1,693,211 294,121 1,987,332
2,065,094 - 2,065,094
3,758,305 294,121 4,052,426
1,216,648 - 1,216,648 -
2,162,967 - 2,162,967 -
$ 3,379,615 $ $ 3,379,615 $
See accompanying notes to basic financial statements.
28
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS (CONTINUED)
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Business -Type Activities - Enterprise Funds
Water
and Sewer Schertz
System EMS Total
Governmental
Service
Fund
Reconciliation of Operating Income
to Net Cash Provided (Used) by
Operating Activities:
Operating Income
$ 2,719,072
$ (271,807)
$ 2,447,265 $ -
Revenues from Other Sources
120,104
83,991
204,095 -
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Provided
(Used) by Operating Activities:
Depreciation
2,064,700
219,064
2,283,764 -
Decrease (Increase) in Assets:
Accounts Receivable (net)
796,188
137,557
933,745 -
Prepaid Expenses
(350,000)
-
(350,000) -
Inventory
(6,864)
(76,463)
(83,327) -
Increase (Decrease) in Liabilities:
Accounts Payable
341,509
(97,687)
243,822 -
Accrued Liabilities
(9,713)
1,969
(7,744) -
Customer Deposits
35,782
-
35,782 -
Unearned Revenue
111,260
28
111,288 -
Compensated Absences
11,842
5,603
17,445
Net Pension Liability and
Related Inflows /Outflows
6,703
10,058
16,761
Net Other Post - employment Benefit Payable
6,337
11,712
18,049
Net Cash Provided (Used) by
Operating Activities
$ 5,846,920
$ 24,025
$ 5,870,945 $ -
Noncash Capital and Related Financing Transactions:
Developer Contributions of Capital Assets
$ 4,158,552
$ -
$ - $ -
See accompanying notes to basic financial statements.
29
NOTES TO BASIC FINANCIAL STATEMENTS
E
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Schertz is a municipal corporation governed by an elected mayor and five- member council. The
financial statements of the City have been prepared in conformity with generally accepted accounting
principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB)
is the accepted standard setting body for establishing governmental accounting and financial reporting
principles. The more significant of the City's accounting policies are described below:
A. Reporting Entity
Component Units - As required by generally accepted accounting principles, these financial statements
present the government and its component units, entities for which the government is considered to be
financially accountable. Blended component units, although legally separate entities, are, in substance, part
of the government's operations; thus, data from these units are be combined with data of the primary
government. Discretely presented component units, on the other hand, are reported in a separate column in
the government -wide financial statements to emphasize it is legally separate from the government. The City
reports the following blended component units:
Schertz Economic Development Corporation - The Corporation was organized for the purpose of
promoting economic development in order to eliminate unemployment and underemployment and to
promote and encourage employment and public welfare of, for, and on behalf of the City. The board
of directors consists of seven (7) members appointed by the city council. The City is financially
accountable for the Corporation because the city council approves the Corporation's budget.
Complete financial statements for the Schertz Economic Development Corporation may be obtained
from City Hall.
2. Parks and Recreation Foundation — The Corporation was organized to improve and expand the
community parks, trails, venues, and recreational programs providing fun leisure and healthy
activities. The Foundation's governing board is comprised of Schertz residents and employees of the
City, the accounting records are maintained by the finance department, cash is held by the City and
the City provides financing for the Foundation. In addition, the City includes the Foundation as part
of the City budget process. The City and its citizens are the sole beneficiaries of the Foundation.
Separate financials are not issued for the Parks and Recreation Foundation.
Joint Ventures - A joint venture is a legally separate entity that results from a contractual arrangement and
that is owned, operated, or governed by two or more participating governments. The following entities meet
the criteria as joint ventures. Separate financial statements for these entities may be obtained at City Hall.
Schertz /Seguin Local Government Corporation - is a public, nonprofit corporation organized to aid,
assist, and act on behalf of the cities of Schertz and Seguin in acquiring, constructing, maintaining,
and operating a water utility system. The participating governments have an ongoing financial
responsibility to fund the operation of the corporation through either purchase of services or by
subsidizing the operations.
2. Cibolo Valley Local Government Corporation — is a public, nonprofit corporation organized July 28,
2011 to aid, assist, and act on behalf of the cities of Cibolo, Converse and Schertz in acquiring,
constructing, maintaining, and operating a water utility system. The participating governments have
an ongoing financial responsibility to fund the operation of the corporation through either purchase
of services or by subsidizing the operations.
31
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
3. Cibolo Creek Municipal Authority (CCMA) — was created in 1971 and provides regional wastewater
services to the area northeast of San Antonio. The City and CCMC entered into a joint project to
develop a new treatment facility that will currently only serve the City. The project will have excess
capacity to serve other users in the future. The City is solely responsible for funding the project until
other users need capacity.
B. Government -Wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of activities)
report information on all of the activities of the primary government and its component units. For the most
part, the effect of interfund activity has been removed from these statements. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately from business -type
activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include 1) charges of customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not properly included among program revenues are reported instead as
general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash
flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been
met.
Governmental fund financial statements are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable
and available. Revenues are considered to be available when they are collectible within the current period or
soon thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be
available if they are collected within 60 days of the end of the current fiscal period. Nonexchange revenues
that are measurable but not available are recorded as unavailable revenue (a deferred inflow of resources).
These revenues are generally property taxes and warrants outstanding. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as
expenditures related to compensated absences and claims and judgments, are recorded only when payment is
due.
Exchange revenues (payments for services) received in advance of the service being provided are recorded as
unearned revenue.
32
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund which accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
The Debt Service Fund accounts for the resources accumulated and payments made for principal and
interest on long -term general obligation debt of governmental funds.
The Capital Projects Fund accounts for financial resources to be used for the acquisition and
construction of major capital facilities and is principally financed by the sale of bonds or certificates of
obligation and grants.
Economic Development Corporation collects sales taxes to support business development and
expansion within the City.
The government reports the following major proprietary funds:
The Water and Sewer System Fund accounts for the water and sewer services provided to the citizens
through user charges.
The EMS Fund accounts for the emergency medical services provided to the citizens of the City and
other participating governments through user charges.
Internal Service Fund accounts for the City's group medical insurance program.
As a general rule the effect of interfund activity has been eliminated from the government -wide financial
statements. Exceptions to this are charges between the City's general government function and various other
functions of the City. Eliminations of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applications for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. General
revenues include all taxes and investment earnings.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues
and expenses generally result from providing services and producing and delivering goods in connection
with a proprietary fund's principal ongoing operations. The principal operating revenues of the water and
sewer enterprise fund and the EMS enterprise fund are charges to customers for sales and services.
Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
33
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first, then unrestricted resources as they are needed.
D. Cash and Cash Equivalents
The City's cash and cash equivalents are considered to be cash on hand and demand deposits. Cash is
reported as restricted when it has restrictions on its use narrower than the purpose of the fund in which it is
reported. This can result in differences in presentation between fund statements and government -wide
statements.
E. Investments
The City is authorized to invest in (1) obligations of the United States or its agencies and instrumentalities;
(2) direct obligations of the State of Texas or its agencies; (3) other obligations, the principal of and interest
on which are unconditionally guaranteed or insured by the State of Texas of the United States; (4) obligations
of states, agencies, counties, cities, and other political subdivisions of any state having been rated of not less
than "AA" or its equivalent; (5) certificates of deposit issued by state and national banks domiciled in Texas
that are guaranteed or insured by the Federal Deposit Insurance Corporation (FDIC) or its successor, or
secured by obligations mentioned above; and (6) fully collateralized direct repurchase agreements having a
defined termination date. In addition, the City is authorized to invest in local government investment pools.
The investment pools operate in accordance with appropriate state laws and regulations and have regulatory
oversight from the Texas Public Funds Investment Act Sec. 2256.0016. The fair value of the City's position
in each pool is the same as the fair value of the pool shares.
F. Receivables and Payables
Activities between the funds that are representative of interfund loans outstanding at the end of the fiscal year
are referred to as due to /from other funds. Any residual balances outstanding between the governmental
activities and business -type activities are reported in the government -wide financial statements as "internal
balances ".
Accounts receivable are reported net of allowances for uncollectible accounts. The allowance account
represents management's estimate of uncollectible accounts based upon experience and historical trends.
Property taxes for the City are levied each October 1 on the taxable value as of the preceding January 1, the
date a lien attaches, for all taxable real and personal property located in the City. Taxes are due by
January 31 following the October 1 assessment date and become delinquent on February 1, at which time
they begin accruing penalty and interest. The enforceable legal claim date for property taxes is the
assessment date; therefore, the City did not record a receivable for accrual of future taxes at year end.
Accordingly, no current taxes receivable are reported. Delinquent taxes have been reported in the financial
statements net of the allowance for uncollectible taxes. Tax revenues are recognized as they become
available. Accordingly, an amount equal to taxes not yet available has been reported as unavailable revenue
(a deferred inflow of resources) at the government fund level.
34
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. Inventories
All inventories are valued at cost using the first- in/first -out (FIFO) method. Inventories of governmental
funds are recorded as expenditures when consumed rather than when purchased.
H. Restricted Assets
Certain proceeds from bonds, resources set aside for their repayment, and other restrictive agreements are
classified as restricted assets on the balance sheet because they are maintained in separate bank accounts and
their use is limited by applicable bond covenants and/or contractual arrangements.
I. Capital Assets
Capital assets, which include land, buildings and improvements, machinery, equipment, vehicles, and
infrastructure assets (i.e., roads, bridges, sidewalks, and similar items), are reported in the applicable
governmental or business -type activities columns in the government -wide financial statements. Capital
assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated
useful life in excess of one year. When capital assets are purchased, they are capitalized and depreciated in
the government -wide financial statements and the proprietary fund statements. Capital assets are recorded as
expenditures of the current period in the governmental fund financial statements.
Capital assets are valued at cost where historical records are available and at an estimated cost where no
records exist. Donated capital assets are valued at their estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset
lives are not capitalized. Improvements to capital assets that materially extend the life of the asset or add to
the value are capitalized. Major outlays for capital assets and improvements are capitalized as projects are
constructed. Interest incurred during construction will not be capitalized in the governmental activities on the
government -wide financial statements; however capitalization of interest is required for business -type
activities. There was no capitalized interest during the current fiscal year.
Capital assets are depreciated over their useful lives on a straight -line basis as follows:
Useful Lives
Assets (Years)
Buildings and Improvements 10-50
Machinery, Equipment, and Vehicles 2-20
Infrastructure 15-30
J. Deferred Inflows /Outflows of Resources
A deferred outflow of resources is a consumption of net position by the government that is applicable to a
future reporting period while a deferred inflow of resources is an acquisition of net position. These items are
presented in separate sections following assets (deferred outflows) or liabilities (deferred inflows) on the
statement of net position.
35
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
K. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and compensatory time
benefits. There is no liability for unpaid accumulated sick leave since the City does not have a policy to pay
any amounts when employees separate from service with the City. All vacation and compensatory time pay
is accrued when incurred in the government -wide and proprietary fund financial statements. A liability for
these amounts is reported in governmental funds only if they have matured, for example, as a result of
employee resignations and retirements.
L. Pensions
The net pension liability, deferred inflows, and outflows of resources related to pensions, and pension
expense, information about the fiduciary net position of the Texas Municipal Retirement System (TMRS),
and additions to and deductions from TMRS's fiduciary net position have been determined on the same basis
as they are reported by TMRS. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
M. Long -Term Obligations
In the government -wide financial statements, and proprietary fund types in the fund financial statements,
long -term debt and other long -term obligations are reported as liabilities in the applicable governmental
activities, business -type activities, or proprietary fund type statement of net position. Bond premiums,
discounts, and losses on defeasance are amortized over the life of the bonds using the effective interest
method. Bonds payable are reported net of the applicable bond premium or discount. Losses on defeasance
are reported as deferred outflows of resources. Bond issuance costs are expensed as incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as
bond issuance costs, during the current period. The face amount of debt issued is reported as other financing
sources. Premiums received on debt issuances are reported as other financing sources while discounts on
debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual
debt proceeds received, are reported as debt service expenditures.
N. Fund Equity
Fund balances in governmental funds are classified as follows:
Nonspendable — Represents amounts that cannot be spent because they are either not in spendable
form (such as inventory or prepaid items) or legally required to remain intact.
Restricted — Represents amounts that are constrained by external parties, constitutional provisions or
enabling legislation.
o7
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N. Fund Equity (Continuted)
Committed — Represents amounts that can only be used for a specific purpose because of a formal
action by the government's highest level of decision making authority: an ordinance adopted by City
Council prior to the end of the fiscal year. Once adopted, the limitation imposed by the ordinance
remains in place until a similar action is taken (the adoption of another ordinance) to remove or
revise the limitation.
Assigned — Represents amounts which the City intends to use for a specific purpose but do not meet
the criteria of restricted or committed. The City Council may make assignments through formal
documentation in the minutes. The City Council authorized (by way of policy) the City Manager to
also make assignments. The City Manager's assignments do not require formal action; however, the
City Manager has not assigned any funds at this time.
Unassigned — Represents the residual balance that may be spent on any other purpose of the City.
When an expenditure is incurred for a purpose in which multiple classifications are available, the City
considers restricted balances spent first, committed second, and assigned third.
O. Net Position
Net position represents the difference between assets plus deferred outflows of resources less liabilities and
deferred inflows of resources. Net investment in capital assets consists of capital assets, net of accumulated
depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction or
improvements of those assets, and adding back unspent proceeds. Net assets are reported as restricted when
there are limitations imposed by creditors, grantors, or laws or regulations of other governments.
P. Estimates
The preparation of financial statements, in conformity with generally accepted accounting principles,
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent liabilities at the date of the financial statements and the reported
amounts of revenue and expenses during the reporting period. Actual amounts could differ from those
estimates.
Q. Bu . etary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all
governmental funds except the library grant special revenue fund, police department forfeiture special
revenue fund and the capital projects fund, which adopts project - length budgets.
R. Reclassifications
Certain reclassifications have been made in the presentation of the September 30, 2015 financial statements.
All comparative information for prior periods has been reclassified to match the new presentation. The
changes in presentation had no impact on the changes in net position or fund balance.
37
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
S. Adoption of Governmental Accounting Standards Board Statement
For the year ending October 31, 2015, the City implemented GASB Statement No. 68 related to accounting
for pensions. The new standard requires the City's net pension liability and related deferred inflows and
outflows of resources to be recognized on the City's government -wide statements. This change required a
prior period adjustment to restate prior years in accordance with the change in accounting principle. The
prior period adjustment recorded represents the net pension liability at September 30, 2014.
NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS
The City's operating deposits are held at one institution. The institution provides a combination of pledged
collateral and FDIC insurance to completely collateralize the City's deposits.
As of September 30, 2015, the City had the following pooled investment funds:
Investment Type
LOGIC
Lone Star Investment Pool
Texas CLASS
Schertz Bank & Trust -
Certificate of Deposit
Capital One -
U.S. Agency Securities
Total
Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising interest rates,
the City's investment policy limits the City's investment portfolio to highly liquid investments to meet
unanticipated cash requirements, and/or to redeploy cash into other investments expected to outperform
current holdings.
Credit Risk. State law limits investments in certificates of deposit to guaranteed or insured by the Federal
Deposit Insurance Corporation, or its successor or the National Credit Union Share Insurance Fund, or its
successor and investment pools continuously rated no lower than AAA or an equivalent rating by at least one
nationally recognized rating service. The City's investment policy does not further limit its investment
choices. As of September 30, 2015, the City's investments in the pooled investment funds were rated AAAm
by Standard & Poor's. The City has also invested in debt securities provided by the Federal Home Loan
Bank, Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Farm
Credit Banks, and U.S Treasury Notes.
Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of a bank failure,
the government's deposits may not be returned. As of September 30, 2015, the City's cash and cash
equivalents (including certificates of deposit, and component unit holdings) were fully collateralized by the
City's depository by a combination of pledged collateral and FDIC insurance. All collateral is held in the
City's name.
38
Weighted
Average
Book
Fair
Maturity
Value
Value
in Days
$ 8,453,161
$ 8,453,161
46
19,940,418
19,940,418
38
12,183,688
12,183,688
62
2,117,713
2,117,713
85
3,097,092
3,097,092
692
$ 45,792,072
$ 45,792,072
92
Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising interest rates,
the City's investment policy limits the City's investment portfolio to highly liquid investments to meet
unanticipated cash requirements, and/or to redeploy cash into other investments expected to outperform
current holdings.
Credit Risk. State law limits investments in certificates of deposit to guaranteed or insured by the Federal
Deposit Insurance Corporation, or its successor or the National Credit Union Share Insurance Fund, or its
successor and investment pools continuously rated no lower than AAA or an equivalent rating by at least one
nationally recognized rating service. The City's investment policy does not further limit its investment
choices. As of September 30, 2015, the City's investments in the pooled investment funds were rated AAAm
by Standard & Poor's. The City has also invested in debt securities provided by the Federal Home Loan
Bank, Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Farm
Credit Banks, and U.S Treasury Notes.
Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of a bank failure,
the government's deposits may not be returned. As of September 30, 2015, the City's cash and cash
equivalents (including certificates of deposit, and component unit holdings) were fully collateralized by the
City's depository by a combination of pledged collateral and FDIC insurance. All collateral is held in the
City's name.
38
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued)
Custodial Credit Risk - Investments. For an investment, this is the risk that, in the event of the failure of the
counterparty, the government will not be able to recover the value of its investment or collateral securities
that are in the possession of an outside party. All of the government securities owned by the City are held by
its agent in the City's name.
NOTE 3 - PROPERTY TAX
Taxes are levied on and payable as of October 1. The City has contracted with the Guadalupe County Tax
Assessor - Collector to collect taxes on its behalf. Current taxes become delinquent February 1. Current year
delinquent taxes not paid by July 1 are turned over to attorneys for collection action. The total taxable value
as of October 1, 2014, upon which the fiscal 2015 levy was based, was $3,037,267,611 (i.e., market value
less exemptions). The estimated market value was $3,497,539,072, making the taxable value 89% of the
estimated market value.
The City is permitted by the Constitution of the State of Texas to levy taxes up to $2.50 per $100 of taxable
assessed valuation for all governmental purposes. Pursuant to a decision of the Attorney General of the State
of Texas, up to $1.50 per $100 of assessed valuation may be used for the payment of long -term debt. The
combined tax rate to finance general governmental services, including the payment of principal and interest
on long -term debt for the year ended September 30, 2015, was $0.4974 per $100 of assessed value, which
means that the City has a tax margin of $2.0026 for each $100 value and could increase its annual tax levy by
approximately $60,824,321 based upon the present assessed valuation before the limit is reached.
However, the City may not adopt a tax rate that exceeds the tax rate calculated in accordance with the Texas
Property Tax Code without holding a public hearing. The Property Tax Code subjects an increase in the
effective tax rate to a referendum election, if petitioned by registered voters, when the effective tax rate
increase is more than eight percent (8 %) of the previous year's effective tax rate.
Property taxes are recorded as receivables and unearned revenues at the time the taxes are assessed. In
governmental funds, revenues are recognized as the related ad valorem taxes are collected. Additional
amounts estimated to be collectible in the time to be a resource for payment of obligations incurred during
the fiscal year and therefore susceptible to accrual in accordance with generally accepted accounting
principles have been recognized as revenue. In the government -wide financial statements, the entire levy is
recognized as revenue, net of estimated uncollectible amounts (if any), at the levy date.
39
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 4 - RECEIVABLES
Receivables as September 30, 2015 for the government's individual major funds and nonmajor funds in the
aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Governmental Funds Proprietary Funds
Capital Economic Debt Nonmajor Water and Schertz
General Projects Development Service Funds Sewer Fund EMS
Receivables:
Property Taxes $ 111,704 $ $ - $ 62,968 $ - $ $
Sales Taxes 1,223,737 611,869 - -
Occupancy Taxes - - - 39,195
Franchise Taxes 532,231 - -
Customers 91,265 - - 2,380,240 17,068,409
Court Fines 4,809,444 - - - -
Grants - 5,011 - - -
Other - - 1,983 - 550 24,178
Gross Receivables 6,768,381 5,011 613,852 62,968 39,745 2,380,240 17,092,587
Less: Allowance for
Uncollectibles 2,858,702 3,778 - 74,795 15,845,752
Net Total Receivables $ 3,909,679 $ 5,011 $ 613,852 $ 59,190 $ 39,745 $ 2,305,445 $ 1,246,835
Governmental funds report unavailable revenue in connection with receivables for revenue that is not
considered to be available to liquidate liabilities of the current period. Governmental funds also defer
revenue recognition in connection with resources that have been received, but not yet earned. At the end of
the current fiscal year, the various components of unearned/ unavailable revenue and unavailable revenue
reported in the governmental funds were as follows:
Unavailable
General Fund
Delinquent Property Taxes Receivable $ 105,001
Court Fines 1,957,444
Total General Fund 2,062,445
Debt Service Fund
Delinquent Property Taxes Receivable 59,190
Total Debt Service Fund 59,190
Total Governmental Funds $ 2,121,635
NOTE 5 - INTERFUND BALANCES AND TRANSFERS
The composition of interfund balances as of September 30, 2015 is as follows:
Due From
Due To
EMS
Water & Sewer
General Fund
Water & Sewer
Capital Projects
Water & Sewer
General Fund
Water & Sewer
Amount Purpose
$ 130,447 Structured loan between funds
138,926 Property tax collections for TIRZ
909 Grant Project
115,131 Allocated to Capital Projects
40
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 5 - INTERFUND BALANCES AND TRANSFERS (Continued)
The following schedule briefly summarizes the City's transfer activity for the year ending September 30,
2015:
Transfer From
General
Nonmajor Governmental
Economic Development
General
Nonmajor Governmental
Capital Projects
EMS
Water
Transfer To
Amount Purpose
Nonmajor Governmental
9,285
Supplement historical committee
Nonmajor Governmental
43,500
Hotel tax support of parks and recreation
Debt Service
367,188
Pledge in support of debt service
Capital Projects
535,988
Supplement capital projects funding
Capital Projects
33,159
Supplement capital projects funding
Water & Sewer
45,537
Supplement water capital projects funding
General
1,468
Special Events
General
1,834
Special Events
NOTE 6 - CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2015 was as follows:
Governmental Activities:
Capital Assets, Not Being Depreciated:
Land
Construction in Progress
Total Capital Assets Not Being Depreciated
Capital Assets, Being Depreciated:
Buildings and Improvements
Machinery, Equipment, and Vehicles
Streets and Infrastructure
Total Capital Assets Being Depreciated
Accumulated Depreciation:
Buildings and Improvements
Machinery, Equipment, and Vehicles
Streets and Infrastructure
Total Accumulated Depreciation
Total Capital Assets Being Depreciated, Net
Governmental Activities Capital Assets, Net
Beginning Ending
Balance Increases Deletions Transfers Balance
$ 7,445,117 $ 53,991 $ $ $ 7,499,108
4,995,655 1,614,840 (730,370) 5,880,125
12,440,772 1,668,831 (730,370) 13,379,233
39,116,202 172,485 19,308 39,307,995
8,162,722 567,691 (487,822) 164,784 8,407,375
87,983,067 5,498,973 620,473 94,102,513
135,261,991 6,239,149 (487,822) 804,565 141,817,883
(8,520,615) (1,116,475) - - (9,637,090)
(4,504,912) (698,674) 392,082 (74,195) (4,885,699)
(23,127,169) (2,907,887) - (26,035,056)
(36,152,696) (4,723,036) 392,082 (74,195) (40,557,845)
99,109,295 1,516,113 (95,740) 730,370 101,260,038
$ 111,550,067 $ 3,184,944 $ (95,740) $ $ 114,639,271
41
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 6 - CAPITAL ASSETS (Continued)
Capital asset activity for the year ended September 30, 2015 was as follows:
Business -Type Activities:
Capital Assets, Not Being Depreciated:
Land
Water Rights
Construction in Progress
Total Assets Not Being Depreciated
Capital Assets, Being Depreciated:
Buildings and Improvements
Machinery, Equipment, and Vehicles
Infrastructure
Total Capital Assets Being Depreciated
Accumulated Depreciation:
Buildings and Improvements
Machinery, Equipment, and Vehicles
Infrastructure
Total Accumulated Depreciation
Total Capital Assets Being Depreciated, Net
Business -Type Activities Capital Assets, Net
Beginning
Balance Increases
$ 1,267,852 $ 86,286
70,245 -
1,651,694 1,312,441
2,989,791 1,398,727
Ending
Deletions Transfers Balance
$ $ $ 1,354,138
70,245
2,964,135
4,388,518
4,660,001 - - 4,660,001
3,640,274 1,217,217 (287,834) (99,015) 4,470,642
77,985,687 4,133,553 82,119,240
86,285,962 5,350,770 (287,834) (99,015) 91,249,883
(1,704,915) (260,871) - - (1,965,786)
(2,308,510) (420,317) 287,834 99,015 (2,341,978)
(20,708,853) (1,602,576) - - (22,311,429)
(24,722,278) (2,283,764) 287,834 99,015 (26,619,193)
61,563,684 3,067,006 64,630,690
$ 64,553,475 $ 4,465,733 $ - $ $ 69,019,208
Depreciation expense was charged to functions /programs of the primary government as follows:
Governmental Activities:
General Government
Public Safety
Public Environment
Parks and Recreation
Cultural
Health
Administration
Total Depreciation Expense - Governmental Activities
Business -Type Activities:
Water and Sewer System
EMS
Total Depreciation Expense - Business Type Activities
42
$ 662,849
579,941
2,916,280
423,201
59,933
65,315
15,517
$ 4,723,036
$ 2,064,700
219,064
$ 2,283,764
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 7 - OPERATING LEASE
The City has agreements with several telecommunication companies to place cellular towers on City water
towers. The following schedule represents the future minimum lease payments.
Fiscal Year Ending
September 30,
Total
2016
$ 220,285
2017
229,096
2018
238,260
2019
250,173
2020
262,681
$ 1,200,495
NOTE 8 - CAPITAL LEASE
In 2014, the City entered into two lease agreements qualifying as capital leases for accounting purposes
based on a bargain purchase option. Therefore, capital assets and a related capital lease obligation has been
recorded at the present value of the future minimum lease payments at the inception date. The assets
acquired through capital lease are reported in capital assets with the following accumulated depreciation at
September 30, 2015:
Assets:
Equipment
Less Accumulated Depreciation
Total
Future minimum lease payments are as follows:
Year Ending September 30,
2016
2017
2018
2019
Total Payments
Less: Amount Representing Interest
Present Value of Minimum Lease Payments
NOTE 9 - LONG TERM DEBT
Governmental Business -type
Activities Activities
$ 133,715
(13,372)
$ 120,343
Governmental
Activities
$ 36,230
36,230
24,153
96,613
(5,118)
$ 91,495
$ 347,705
(136,911)
$ 210,794
Business -type
Activities
$ 69,541
69,541
69,541
23,180
231,803
$ 231,803
The City issues a variety of long -term debt instruments in order to acquire and/or construct major capital
facilities and equipment for governmental activities. These instruments include general obligation bonds,
certificates of obligation, and capital leases. These debt obligations are secured by primarily future property
tax revenues. In some cases, these bonds are also secured by a pledge of net revenues from the utility
system, emergency medical services and economic development sales taxes. However, the amount of the
formal pledge is generally limited to $1,000.
43
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 9 - LONG -TERM DEBT (Continued)
A summary of the terms of general obligation bonds and combination of tax and revenue certificates of
obligation outstanding at September 30, 2015, follows:
Issue Amount
Primary Government
Rate
General Obligation Bonds
2006 Series
$ 15,000,000
2007 Series
6,000,000
2008 Series
9,900,000
2009 Series
9,500,000
2010 Series, Refunding
2,865,000
2011 Series
8,250,000
2011A Series, Refunding
6,745,000
2012 Series
7,625,000
2014 Series, Refunding
8,450,000
Tax Notes
2.33%
2010 Notes
1,270,000
2013 Notes
835,000
2013A Notes
800,000
2015 Notes
245,000
Certificates of Obligation
-
2007 Series CIB 2
438,900
2007 Series CIB 4
569,500
2007 Series CIB 5
1,300,000
Total Governmental Long -Term
Obligations
44
Maturity
Rate
Balance
2031
4.0%-5.25%
$ 4,530,000
2027
4.07%
4,040,000
2028
4.13%
7,410,000
2033
2.0%-5.50%
6,555,000
2021
2.0%-4.0%
1,775,000
2036
3.0%-6.0%
7,530,000
2024
2.33%
5,310,000
2032
2.00%
6,750,000
2030
2.0 % -4.0%
8,400,000
2015
1.2%-2.55%
-
2018
0.7%-1.7%
510,000
2018
1.30%
485,000
2021
1.75%
215,000
2016
4.01%
52,800
2016
4.01%
70,001
2016
4.01%
155,000
$ 53,787,801
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 9 - LONG -TERM DEBT (Continued)
Business -Type Activities
General Obligation Refunding Bonds
Issue Amount
Maturity
Rate
Balance
Primary Government (Continued)
6,533
- (969)
5,564
969
General Obligation Bonds
9,436,066
- (598,866)
8,837,200
617,200
2011 Series, Refunding
$ 2,675,000
2021
2.0%-3.0%
$ 1,530,000
2013 Series, Refunding
2,130,000
2025
2.58%
1,955,000
Certificates of Obligation
301,344
- (69,541)
231,803
69,541
2007 Series CIB 1
6,600,000
2026
4.01%
4,275,000
2007 Series CIB 2
226,100
2016
4.01%
27,200
2007 Series CIB 4
280,500
2016
4.01%
35,000
2013 Series
4,965,000
2033
2.0 % -4.0%
4,500,000
Tax Notes
2015 Notes
1,880,000
2021
1.75%
1,640,000
Total Business -Type Long -Term
Obligations
$ 13,962,200
Changes in long -term debt for the year ending September 30, 2015 are as follows:
Balance
Balance Due Within
9/30/2014
Additions
Reductions
9/30/2015 One Year
Governmental Activities:
General Obligation Bonds
$ 38,890,000 $
-
$ (2,075,000)
$ 36,815,000 $ 2,180,000
Unamortized Premium
463,270
-
(24,232)
439,038 24,232
General Obligation Refunding Bonds
16,410,000
-
(925,000)
15,485,000 980,000
Unamortized Premium
724,163
-
(53,073)
671,090 53,073
Certificates of Obligation
543,934
-
(271,133)
277,801 277,800
Tax Notes
1,585,000
245,000
(620,000)
1,210,000 365,000
Capital Lease
123,370
-
(31,875)
91,495 33,174
Compensated Absences
866,799
237,621
(171,914)
932,506 186,901
Total Governmental Activities
$ 59,606,536 $
482,621
$ (4,172,227)
$ 55,921,930 $ 4,100,180
Business -Type Activities
General Obligation Refunding Bonds
$ 3,960,000
$ - $ (475,000)
$ 3,485,000
$ 475,000
Unamortized Premium
6,533
- (969)
5,564
969
Certificates of Obligation
9,436,066
- (598,866)
8,837,200
617,200
Unamortized Premium
125,140
- (6,587)
118,553
6,587
Tax Notes
65,000
1,880,000 (305,000)
1,640,000
280,000
Capital Lease
301,344
- (69,541)
231,803
69,541
Compensated Absences Payable
241,680
62,699 (45,254)
259,125
51,825
Total Business- Type Activities
$ 14,135,763
$ 1,942,699 $ (1,501,217)
$ 14,577,245
$ 1,501,122
45
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 9 - LONG -TERM DEBT (Continued)
Annual debt service requirements of bonded debt as of September 30, 2015, are as follows:
NOTE 10 - RETIREMENT PLAN
Plan Description
The City participates as one of 860 plans in the nontraditional, joint contributory, hybrid defined benefit
pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created
by the state of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas
Government Code (the TMRS Act) as an agent multiple - employer retirement system for municipal
employees in the State of Texas. The TMRS Act places the general administration and management of the
system with a six - member Board of Trustees. Although the Governor, with the advice and consent of the
Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS issues a publicly
available comprehensive annual financial report (CAFR) that can be obtained at www.tmrs.com.
All eligible employees of the City are required to participate in TMRS retirement system
46
Governmental Activities
September 30,
Principal
Interest
Total
2016
$
3,647,800
$ 1,950,750
$ 5,598,550
2017
3,795,001
1,833,836
5,628,837
2018
3,755,000
1,714,671
5,469,671
2019
3,180,000
1,599,183
4,779,183
2020
3,305,000
1,484,330
4,789,330
2021 -2025
15,890,000
5,673,836
21,563,836
2026 -2030
13,505,000
2,899,241
16,404,241
2031 -2035
6,155,000
643,206
6,798,206
2036 -2037
555,000
13,875
568,875
Total
$
53,787,801
$ 17,812,928
$ 71,600,729
Business -Type Activities
September 30,
Principal
Interest
Total
2016
$
1,372,200
$ 421,827
$ 1,794,027
2017
1,485,000
385,036
1,870,036
2018
1,435,000
348,296
1,783,296
2019
1,475,000
311,233
1,786,233
2020
1,510,000
271,502
1,781,502
2021 -2025
4,590,000
824,031
5,414,031
2026 -2030
1,425,000
250,910
1,675,910
2031 -2035
670,000
40,800
710,800
Total
$
13,962.200
$ 2,853,635
$ 16,815,835
NOTE 10 - RETIREMENT PLAN
Plan Description
The City participates as one of 860 plans in the nontraditional, joint contributory, hybrid defined benefit
pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created
by the state of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas
Government Code (the TMRS Act) as an agent multiple - employer retirement system for municipal
employees in the State of Texas. The TMRS Act places the general administration and management of the
system with a six - member Board of Trustees. Although the Governor, with the advice and consent of the
Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS issues a publicly
available comprehensive annual financial report (CAFR) that can be obtained at www.tmrs.com.
All eligible employees of the City are required to participate in TMRS retirement system
46
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 10 - RETIREMENT PLAN (Continued)
Texas Municipal Retirement System (Continued)
Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing
body of the City, within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee's contributions, with interest, and the
City- financed monetary credits with interest were used to purchase an annuity. Members may choose to
receive their retirement benefit in one of seven payment options. Members may also choose to receive a
portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly
payments, which cannot exceed 75% of the member's deposits and interest.
At the December 31, 2014 valuation and measurement date, the following employees were covered by the
benefit terms:
Inactive Employees or Beneficiaries Currently Receiving Benefits
Inactive Employees Entitled to but Not Yet Receiving Benefits
Active employees
Contributions
2013 2014
58 67
124 133
306 302
488 502
The contribution rates for employees in TMRS are either 5 %, 6 %, or 7% of employee gross earnings, and the
City matching percentages are either 100 %, 150 %, or 200 %, both as adopted by the governing body of the
City. Under the state law governing TMRS, the contribution rate for each city is determined annually by the
actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the
estimated amount necessary to finance the cost of benefits earned by employees during the year, with an
additional amount to finance any unfunded accrued liability.
For the year ending September 30, 2015, employees for the City were required to contribute 7% of their
annual gross earnings during the fiscal year. The contribution rates for the City were 10.72% and 11.08% in
calendar years 2014 and 2015, respectively. The City's contributions to TMRS for the year ended
September 30, 2015 were $2,487,856.
Net Pension Liability
The City's Net Pension Liability (NPL) was measured as of December 31, 2014, and the Total Pension
Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of
that date.
47
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 10 - RETIREMENT PLAN (Continued)
Texas Municipal Retirement System (Continued)
Actuarial Assumptions
The Total Pension Liability in the December 31, 2014 actuarial valuation was determined using the
following actuarial assumptions:
Inflation 3.00% per year
Overall Payroll Growth 3.5% to 12% per year
Investment Rate of Return* 7.00%
* Presented net of pension plan investment expense, including inflation
Salary increases were based on a service- related table. Mortality rates for active members, retirees, and
beneficiaries were based on the gender - distinct RP2000 Combined Health Mortality Table, with male rates
multiplied by 109% and female rates multiplied by 103 %. The rates are projected on a fully generational
basis by scale BB to account for future mortality improvements. For disabled annuitants, the gender- distinct
RP2000 Disabled Retiree Mortality Table is used with slight adjustments.
Actuarial assumptions used in the December 31, 2014 valuation were based on the results of actuarial
experience studies. The experience study in TMRS was for the period January 1, 2006 through December
31, 2009, first used in the December 31, 2010 valuation. Healthy post- retirement mortality rates and annuity
purchase rates were updated based on a Mortality Experience Investigation Study covering 2009 through
2011, and dated December 31, 2013. These assumptions were first used in the December 31, 2013 valuation,
along with a change to the Entry Age Normal (EAN) actuarial cost method. Assumptions are reviewed
annually. No additional changes were made for the 2014 valuation.
The long -term expected rate of return on pension plan investments is 7.0 %. The pension plan's policy in
regard to the allocation of invested assets is established and may be amended by the TMRS Board of
Trustees. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as
well as the production of income, in order to satisfy the short-term and long -term funding needs of TMRS.
The long -term expected rate of return on pension plan investments was determined using a building -block
method in which best estimate ranges of expected future real rates of return (expected returns, net of pension
plan investment expense and inflation) are developed for each major asset class. These ranges are combined
to produce the long -term expected rate of return by weighting the expected future rates of return by the target
asset allocation percentage and by adding the expected inflation.
48
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 10 - RETIREMENT PLAN (Continued)
Texas Municipal Retirement System (Continued)
Actuarial Assumptions (Continued)
The target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Asset Class
Domestic Equity
International Equity
Core Fixed Income
Non -Core Fixed Income
Real Return
Real Estate
Absolute Return
Private Equity
Discount Rate
Target Allocation
17.50%
17.50%
30.00%
10.00%
5.00%
10.00%
5.00%
5.00%
100.00%
Long -Term
Expected Real
Rate of Return
(Arithmetic)
4.80%
6.05%
1.50%
3.50%
1.75%
5.25%
4.25%
8.50%
The discount rate used to measure the Total Pension Liability was 7 %. The projection of cash flows used to
determine the discount rate assumed that employee and employer contributions will be made at the rates
specified in statute. Based on that assumption, the pension plan's Fiduciary Net Position was projected to be
available to make all projected future benefit payments of current active and inactive employees. Therefore,
the long -term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the Total Pension Liability.
49
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 10 - RETIREMENT PLAN (Continued)
Texas Municipal Retirement System (Continued)
Changes in the Net Pension Liability
The below schedule presents the changes in the Net Pension Liability as of December 31, 2014:
Balance at December 31, 2013
Changes for the year:
Service Cost
Interest
Change of Benefit Terms
Difference Between Expected and
Actual Experience
Changes of Assumptions
Contributions - Employer
Contributions - Employee
Net Investment Income
Benefit Payments, Including Refunds
of Employee Contributions
Administrative Expense
Other Changes
Net Changes
Balance at December 31, 2014
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
$ 45,615,815 $ 32,179,518 $ 13,436,297
2,558,743 - 2,558,743
3,245,266 - 3,245,266
(122,286) - (122,286)
2,403,929 (2,403,929)
1,077,097 (1,077,097)
1,841,586 (1,841,586)
(1,068,487) (1,068,487) -
(19,219) 19,219
- (1,580) 1,580
4,613,236 4,233,326 379,910
$ 50,229,051 $ 36,412,844 $ 13,816,207
Plan Fiduciary Net Position as a
Percentage of Total Pension Liability
Covered Employee Payroll $
Net Pension Liability as a Percentage
of Covered Payroll
2013
2014
70.54%
72.49%
14,356,845 $
15,389,154
93.59%
89.48%
The following presents the net pension liability of the City, calculated using the discount rate of 7.0 %, as
well as what the City's net pension liability would be if it were calculated using a discount rate that is
1- percentage point lower (6.0 %) or 1- percentage point higher (8.0 %) than the current rate:
Net Pension Liability
Discount Rate
6%
$ 22,622,838
50
Discount Rate Discount Rate
7% 8%
$ 13,816,207 $ 6,726,407
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 10 - RETIREMENT PLAN (Continued)
Texas Municipal Retirement System Continued)
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's Fiduciary Net Position is available in a separately- issued
TMRS financial report. That report may be obtained on the Internet at www.tmrs.com.
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended September 30, 2015, the City recognized pension expense of $2,523,069. Also as of
September 30, 2015, the City reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Differences between Expected and
Actual Economic Experience
Changes in Actuarial Assumptions
Differences Between Projected and
Actual Investment Earnings
Contributions Subsequent to the
Measurement Date
Deferred
Outflows of
Resources
328,784
Deferred
Inflows of
Resources
102,986
1,800,543 -
$ 2,129,327 $ 102,986
Deferred outflows of resources in the amount of $1,800,543 is related to pensions resulting from
contributions subsequent to the measurement date, and will be recognized as a reduction of the net pension
liability for the plan year ending December 31, 2015. Other amounts reported as deferred outflows and
inflows of resources related to pensions will be recognized in pension expense as follows:
For the Year ended December 31,
2015
$ 62,986
2016
62,986
2017
62,986
2018
62,986
2019
(19,300)
Thereafter
(6,846)
$ 225,798
C. Other Post - Employment Benefits
The City also participates in the cost sharing multiple - employer defined benefit group -term life insurance
plan operated by TMRS known as Supplemental Death Benefits Fund (SDBF). The City elected, by
ordinance, to provide group -term life insurance coverage to both current and retired employees. The City
may terminate coverage under and discontinue participation in the SDBF by adopting an ordinance before
November 1 of any year to be effective the following January 1.
51
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 10 - RETIREMENT PLAN (Continued)
C. Other Post - Employment Benefits (Continued)
The death benefit for active employees provides a lump -sum payment approximately equal to the employee's
annual salary (calculated based on the employee's actual earnings, for the 12 -month period preceding the
month of death); retired employees are insured for $7,500; this coverage is an "other postemployment
benefit," or OPEB.
The City contributes to the SDBF at a contractually required rate as determined by an annual actuarial
valuation. The rate is equal to the cost of providing one -year term life insurance. The funding policy for the
SDBF program is to assure that adequate resources are available to meet all death benefit payments for the
upcoming year; the intent is not to pre -fund retiree life insurance during the employees' entire careers.
The City's contributions to the TMRS SDBF for the years ended 2015, 2014, and 2013 were $21,681
$20,815, and $21,251, respectively, which equaled the required contributions each year.
NOTE 11 — RETIREE HEALTH INSURANCE PLAN
A. Plan Description
The City provides an other post - employment benefit to eligible retirees of the City whereby they can stay on
the City's health insurance plan by paying the full premium.
B. Contributions
The City's annual other post - employment benefits (OPEB) cost is calculated based on the annual required
contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters of
GASB Statement No. 45. The ARC represents a level of accrual that, if paid on an ongoing basis, is
projected to cover the normal cost each year and to amortize any unfunded actuarial liabilities (or funding
excesses) over a period not to exceed thirty years. The City's annual OPEB cost for the fiscal year ending
September 30, 2015 is as follows:
Annual Required Contribution
Interest on OPEB obligation
Adjustment to ARC
Annual OPEB cost
Contributions
Increase in net OPEB obligation
Beginning Net OPEB Obligation
Ending Net OPEB Obligation
52
$ 79,728
16,421
(14,990)
81,159
(15,485)
65,674
364,906
$ 430,580
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 11 — RETIREE HEALTH INSURANCE PLAN (Continued)
B. Contributions (Continued)
The City's annual OPEB cost, the amount contributed by the employer, the percentage of annual OPEB cost
contributed to the plan, and the net OPEB obligation for fiscal year ending September 30, 2015 and the
preceding two fiscal years were as follows:
September 30,
2015
2014
2013
Cost Contributions Contributed
$ 79,728 $ 15,485 19%
79,512 13,645 17%
77,014 13,248 17%
Obligation
$ 430,580
364,906
63,766
The Projected Unit Credit Cost Method is used to calculate the actuarial required contribution (ARC) for the
City's retiree health care plan. Using the plan benefits, the present health premiums and a set of actuarial
assumptions, the anticipated future payments are projected. The actuarial cost method then provides for a
systematic funding for these anticipated payments. The yearly ARC is computed to cover the cost of benefits
being earned by covered members as well as to amortize a portion of the unfunded accrued liability.
Projections of health benefits are based on the plan as understood by the City and include the types of
benefits in force at the valuation date and the pattern of sharing benefit costs between the City and the City's
employees to that point. Actuarial calculations reflect a long -term perspective and employ methods and
assumptions that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial
value of assets. Significant methods and assumptions were as follows:
Inflation Rate
3.0%
Investment Rate of Return
4.5 %, net of expenses
Actuarial Cost Method
Projected Unit of Credit
Amortization Method
Level as a percent of payroll
Amortization Period
30 -year open period
Payroll Growth
3.0%
Medical Trend
Initial rate of 7.25 %, declining to an ultimate rate of 4.5% after 11 years
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of events in the future. Amounts determined regarding the funded status and the annual required
contributions of the City's retiree health care plan are subject to continual revision as actual results are
compared to past expectations and new estimates are made about the future. The required schedule of
funding progress presented as required supplementary information provides multiyear trend information that
shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liability for benefits.
The funded status as of December 31, 2014, the most recent actuarial valuation date, is as follows:
Actuarial Actuarial Value
Valuation Date of Assets
12/31/2013 $ -
Actuarial
Accrued
Liability (AAL) Funded Ratio
$ 493,114 0.0%
53
UAAL as a
Unfunded Percentage of
AAL (UAAL) Covered Payroll Covered Payroll
$ 493,114 $ 14,356,845 3.4%
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 11 — RETIREE HEALTH INSURANCE PLAN (Continued)
B. Contributions (Continued)
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of events far into the future. Actuarially determined amounts are subject to continual revisions as
actual results are compared to past expectations and new estimates are made about the future.
Actuarial calculations are based on the benefits provided under the terms of the substantive plan in effect at
the time of each valuation, and reflect a long -term perspective. Consistent with that perspective, actuarial
methods and assumptions used to include techniques that are designed to reduce short-term volatility in
actuarial accrued liabilities and the actuarial value of assets. The schedule of funding progress, presented as
Required Supplementary Information following the notes to the financial statements, presents multi -year
information about whether the actuarial value of plan assets is increasing or decreasing over time relative to
the actuarial accrued liability of benefits.
NOTE 12 - JOINT VENTURES
Schertz /Seguin Local Government Corporation
The Schertz /Seguin Local Government Corporation is a public, nonprofit corporation organized to aid, assist,
and act on behalf of the cities of Schertz and Seguin in acquiring, constructing, maintaining, and operating a
water utility system. The participating governments have an ongoing financial responsibility to fund the
operation of the corporation through either purchase of services or by subsidizing the operations.
Contributions to the corporation are reflected as "operating expenses" in the water and sewer fund and
totaled $1,178,081 for the year ended September 30, 2015. Separate financial statements for the
Schertz /Seguin Local Government Corporation may be obtained from the City of Seguin, 210 East Gonzales
Street, Seguin, Texas 78156.
The City of Schertz is jointly liable, together with the City of Seguin, for operating deficits and long -term
debt of the Schertz /Seguin Local Government Corporation. Following is a summary of financial data as
reported in the Corporation's audited financial statements dated September 30, 2014:
ASSETS:
Current Assets
$ 11,752;482
Restricted Cash and Cash Equivalents
8,866,401
Property, Plant & Equipment (net)
86,142,663
Other Assets
279,607
TOTAL ASSETS
107,041,153
Deferred Charges on Refunding
1,801,852
LIABILITIES:
Current Liabilities
5,861,643
Revenue Bonds (Less Current Maturities)
97,459,784
TOTAL LIABILITIES
103,321,427
NET POSITION:
Net Investment in Capital Assets
(5,182,814)
Restricted
3,699,577
Unrestricted
7,004,815
TOTAL NET POSITION
$ 5,521,578
54
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 12 - JOINT VENTURES (Continued)
Schertz /Seguin Local Government Corporation (Continued)
The Corporation had revenue bonds outstanding in the amount of $101,176,000 (as of September 30, 2014)
to provide funds to build, improve, extend, enlarge and repair the Corporation's utility system, fund a
reserve, and pay the costs of bond issuance. The bond resolution pledges intergovernmental contract
revenues from the cities of Schertz and Seguin (the participating governments) to bond holders. Under the
intergovernmental water supply contract, the participating governments are unconditionally obligated to pay
their respective shares of annual contract revenue bond debt service from the operation of their respective
utility systems.
Cibolo Valley Local Government Corporation
The Cibolo Valley Local Government Corporation (CVLGC) is a public nonprofit corporation incorporated
in March 2012 to assist and act on behalf of the cities of Schertz, and Cibolo to obtain additional water
sources. The participating governments have an ongoing financial responsibility to fund the operation of the
corporation through either purchase of services or by subsidizing the operations. Contributions to the
corporation are reflected as "operating expenses" in the water and sewer fund. Separate financial statements
for the CVLGC may be obtained from the City of Seguin, 210 East Gonzales Street, Seguin, Texas 78156.
The City of Schertz is jointly liable, together with the City of Cibolo, for operating deficits and long -term
debt of CVLGC. Following is a summary of financial data as reported in the Corporation's audited financial
statements dated September 30, 2014:
ASSETS:
Current Assets $ 596,709
TOTAL ASSETS 596,709
LIABILITIES:
Current Liabilities 64,872
TOTAL LIABILITIES 64,872
NET POSITION:
Unrestricted 531,837
TOTAL NET POSITION $ 531,837
Cibolo Creek Municipal Authority
Cibolo Creek Municipal Authority (CCMA) provides sewage treatment for the area in and around the City.
CCMA has agreed to construct a sewage treatment facility in the southern portion of the City to primarily
serve citizens of the City but also neighboring Cities and future development. Because the City would be the
primary customer at this time, the City agreed to enter into a regional wastewater treatment contract in
September 2014. CCMA will issue bonds to finance the project and the City has agreed to make payments to
CCMA to cover operation expenses, maintenance expenses, and debt service. The City is the sole member at
this time, so it is responsible for 100% of the project costs. Should other members join, the City's share of
the costs would be reduced.
55
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 12 - JOINT VENTURES (Continued)
Cibolo Creek Municipal Authority (Continued)
In September 2014, CCMA issued bonds for the project in the amount of $6,950,000 with debt service
requirements as follows:
Fiscal Year Ending
September 30,
Principal
Interest
Total
2016
$ 145,000
$ 266,150
$ 411,150
2017
150,000
263,250
413,250
2018
150,000
260,250
410,250
2019
155,000
257,250
412,250
2020 -2024
830,000
1,233,350
2,063,350
2025 -2029
970,000
1,087,650
2,057,650
2030 -2034
1,180,000
877,450
2,057,450
2035 -2039
1,465,000
592,500
2,057,500
2040 -2044
1,830,000
225,200
2,055,200
$ 6,875,000
$ 5,063,050
$ 11,938,050
NOTE 13 - COMMITMENTS AND CONTINGENCIES
Tax Increment Financing (the "Zone')
The City is a principal in the City of Schertz Tax Increment Reinvestment Zone #2, pursuant to Chapter 311
of the Texas Tax Code. Under the terms of the Zone agreement, the City of Schertz, Bexar County, and San
Antonio River Authority are funding infrastructure improvements through tax increment financing to the
Sedona Development Project.
At the time the Zone was created, the property tax base was "frozen" and increment taxes resulting from the
increases to property tax base are being used to finance Zone improvements. The total projected cost is a
combined figure of $45,000,000. Project costs of the developer will be funded up to 100% of the tax
increment generated by the City of Schertz, Bexar County, and San Antonio River Authority (SARA). The
City of Schertz (combined with SARA) have committed up to $32,877,000 of the total $45,000,000. The
Zone has a statutory termination date of December 31, 2027. The TIRZ has collected $505,736 from taxing
entities (net of administrative reimbursements) and remitted $50,376 to the developer as of
September 30, 2015.
380 Agreements
To encourage economic growth, the City has entered into various 380 agreements with businesses in the
City. These agreements involve rebates of future ad valorem taxes and or sales taxes. These agreements are
rebates of future taxes, and should not have a significant impact on current tax base in future years. Once the
terms of the 380 agreements expire, the tax base of the City will be increased to include these new
businesses.
56
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 13 - COMMITMENTS AND CONTINGENCIES (Continued)
Construction Commitments
The City of Schertz has entered into commitments for various projects as follows:
Primary Government:
Governmental Activities:
Lower Seguin Road Improvements
Natatorium Project
Soccer Fields Improvements
FM 78 and Main Street
Total Governmental Commitments
Business -Type Activities:
S. W.W. Treatment Plant
Town Creek Sewer Project - Phase III
East Live Oak Water Plan Upgrades
SE Quad Elevated Tank
Aviation Heights Waterline Replacement
Northcliffe Waterline Upgrades
Waterline at Maske Rd- FM1518
Commercial Place Project
Total Business -Type Activities
Total Estimated Future Commitments
Litigation
Estimated Project
Expended to
Estimated Future
Cost to City
Date
Commitment
$ 541,841
$ 274,777
$ 267,064
6,160,500
700,352
5,460,148
4,347,128
4,206,856
140,272
1,000,000
20,430
979,570
12,049,469
5,202,415
6,847,054
3,985,000
223,811
3,761,189
998,006
816,575
181,431
245,000
121,850
123,150
200,552
50,273
150,279
400,000
32,481
367,519
730,064
700,664
29,400
367,735
354,477
13,258
2,135,723
1,783,485
352,238
9,062,080
4,083,616
4,978,464
$ 21,111,549
$ 9,286,031
$ 11,825,518
The City is the subject of various claims and litigation that have arisen in the course of its operations.
Management is of the opinion that the City's liability in these cases, if decided adversely to the City, will not
have a material effect on the City's financial position.
Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters. The City contracts with the Texas Municipal League
Intergovernmental Risk Pool, a public entity risk pool currently operating as a common risk management and
insurance program providing insurance coverage in the following areas: general liability, automobile liability
and physical damage, law enforcement liability, worker's compensation, real and personal property, mobile
equipment, and errors and omissions liability. TML is a multi - employer group that provides for a
combination of risk sharing among pool participants and stop loss coverage. Contributions are set annually
by the provider. Liability by the City is generally limited to the contributed amounts. Annual contributions
for the year ended September 30, 2015 were $372,559 for property and casualty and workers compensation
coverage. There were no significant increases or decreases in coverage from fiscal year 2014.
57
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
NOTE 14 - DEFICIT NET POSITION
The EMS currently has a deficit net positon. The City plans to remedy this deficit with a review of
expenditures as well as an increase in fees from participants.
NOTE 15 - SUBSEQUENT EVENTS
Subsequent to year end the city issued the City of Schertz, Texas General Obligation Refunding Bonds,
Series, 2015 to refund the Texas General Obligation Bonds, Series 2006. A contract for approximately $8.5
million was signed with Byrne Construction and Marmon Mok for the construction of an Aquatic Center.
The City had a general election November 2015 in which several propositions passed: Issuance of $7 million
general obligation bonds for streets, bridges and sidewalk improvements; issuance of $8 million general
obligation bonds for public facility station and a new fire department. Additionally there were several
propositions which involved the following charter changes: The number of Council members will increase
from 5 to 7 members; and the Mayor and Council Members terms will be increased from 2 to 3 years.
NOTE 16 — RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
GASB issued Statement 72, Fair Value Measurement and Application, Statement No. 73, Accounting and
Financial reporting for Pensions and Related Assets That Are Not Within the Scope of GASB Statement No.
68, and Amendments to Certain Provisions of GASV Statements 67 and 68, Statement No. 74, Financial
Reporting for Postemployment Benefit Plans Other Than Pension Plans, Statement No. 75, Accounting and
Financial Reporting for Postemployment Benefits Other Than Pensions, and Statement No. 76, The
Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. When they
become effective, application of these standards may restate portions of these financial statements.
58
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"CITy�
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REQUIRED SUPPLEMENTARY INFORMATION
59
CITY OF SCHERTZ, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2015
Variance With
Public Safety:
Police Department
5,763,594
5,929,865
2015
Final Budget -
Fire Department
Budgeted Amounts
Actual
Positive
193,027
Original
Final
Amounts
(Negative)
REVENUES
Marshal Service
658,671
672,382
626,825
Taxes
$ 17,961,184
$ 17,995,576
$ 17,926,685
$ (68,891)
Permits and Fees
1,267,032
1,267,032
1,447,814
180,782
Service Fees
1,510,014
1,510,014
1,609,917
99,903
Fines and Fees
1,810,394
1,810,394
1,498,887
(311,507)
Intergovernmental
206,800
206,800
233,959
27,159
Investment Earnings
6,625
6,625
24,369
17,744
Miscellaneous
530,250
542,750
571,416
28,666
TOTAL REVENUES
23,292,299
23,339,191
23,313,047
(26,144)
EXPENDITURES
General Government:
Council
87,675
87,675
74,712
12,963
City Manager
866,125
868,199
879,510
(11,311)
Municipal Court
476,313
476,313
324,771
151,542
311 Customer Relations
114,691
114,691
107,296
7,395
Planning & Zoning
157,827
157,827
152,815
5,012
Legal
360,000
360,000
190,560
169,440
General Services
993,988
1,006,129
999,500
6,629
City Secretary
187,617
187,617
175,560
12,057
Nondepartmental
1,922,942
1,558,834
1,163,485
395,349
Community & Media Relations
308,220
308,220
270,054
38,166
Records Management
63,256
64,324
61,470
2,854
Schertz Magazine
404,608
404,608
379,929
24,679
Engineering
336,768
241,268
220,533
20,735
Geographic Information Systems
154,795
154,795
149,613
5,182
Citizens Assistance
86,678
86,678
41,678
45,000
Special Events
142,950
142,950
75,804
67,146
Total General Government
6,664,453
6,220,128
5,267,290
952,838
Public Safety:
Police Department
5,763,594
5,929,865
5,861,101
68,764
Fire Department
3,472,877
3,568,001
3,374,974
193,027
Inspection
584,812
595,846
560,278
35,568
Marshal Service
658,671
672,382
626,825
45,557
Total Public Safety
10,479,954
10,766,094
10,423,178
342,916
Public Environment:
Streets
1,049,510
1,015,164
978,649
36,515
Total Public Environment
$ 1,049,510
$ 1,015,164 $
978,649 $
36,515
60
CITY OF SCHERTZ, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL)
GENERAL FUND (CONTINUED
YEAR ENDED SEPTEMBER 30, 2015
Variance With
Administration:
Information Technology
1,625,529
1,627,328
2015
Final Budget -
Human Resources
Budgeted Amounts
Actual
Positive
15,541
Original
Final
Amounts
(Negative)
EXPENDITURES (Continued)
Purchasing & Asset Management
273,468
273,468
223,501
Parks and Recreation:
Building Maintenance
267,599
296,225
266,959
Parks
$ 954,781
$ 891,979
$ 855,323
$ 36,656
Pools
253,078
253,078
228,254
24,824
Community /Civic Center
155,801
155,801
137,913
17,888
Senior Center
46,390
46,390
61,426
(15,036)
Total Parks and Recreation
1,410,050
1,347,248
1,282,916
64,332
Cultural:
OVER (UNDER) EXPENDITURES
260,003
531,803
2,436,424
Library
842,473
842,473
795,436
47,037
Total Cultural
842,473
842,473
795,436
47,037
Health:
Animal Control
503,260
503,260
404,008
99,252
Total Health
503,260
503,260
404,008
99,252
Administration:
Information Technology
1,625,529
1,627,328
1,429,255
198,073
Human Resources
423,683
423,683
408,142
15,541
Finance
536,120
536,120
506,947
29,173
Purchasing & Asset Management
273,468
273,468
223,501
49,967
Building Maintenance
267,599
296,225
266,959
29,266
Fleet Service
648,702
648,702
578,564
70,138
Interfund Charges
(1,692,505)
(1,692,505)
(1,688,222)
(4,283)
Total Administration
2,082,596
21113,021
1,725,146
387,875
TOTAL EXPENDITURES
23,032,296
22,807,388
20,876,623
1,930,765
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
260,003
531,803
2,436,424
1,904,621
OTHER FINANCING SOURCES (USES)
Transfers In
262,802
358,802
148,682
(210,120)
Transfers Out
(213,850)
(583,650)
(690,653)
(107,003)
TOTAL OTHER FINANCING
SOURCES (USES)
48,952
(224,848)
(541,971)
(317,123)
NET CHANGE IN FUND BALANCE
308,955
306,955
1,894,453
1,587,498
FUND BALANCE - BEGINNING
7,722,034
71722,034
71722,034
-
FUND BALANCE - ENDING
$ 8,030,989
$ 8,028,989
$ 9,616,487
$ 1,587,498
61
CITY OF SCHERTZ, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL
ECONOMIC DEVELOPMENT CORPORATION
YEAR ENDED SEPTEMBER 30, 2015
EXPENDITURES
Current:
General Government
1,156,900
1,156,900
Variance With
876,920
Administration
2015
Final Budget -
351,812
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
REVENUES
415,000
415,000
-
Taxes
$ 3,682,057 $ 3,682,057
$ 3,442,819
$ (239,238)
Investment Earnings
10,200 10,200
14,461
4,261
Miscellaneous
- -
1,478
1,478
TOTAL REVENUES
3,692,257 3,692,257
3,458,758
(233,499)
EXPENDITURES
Current:
General Government
1,156,900
1,156,900
279,980
876,920
Administration
1,069,114
1,069,114
351,812
717,302
Debt Service:
9,821,747 $ 1,360,722
Principal
415,000
415,000
415,000
-
Interest
15,608
15,608
15,609
(1)
TOTAL EXPENDITURES
2,656,622
2,656,622
1,062,401
11594,221
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
1,035,635
1,035,635
2,396,357
11360,722
OTHER FINANCING SOURCES (USES)
Transfers Out (367,188) (367,188) (367,188) -
TOTAL OTHER FINANCING
SOURCES (USES) (367,188) (367,188) (367,188) -
NET CHANGE IN FUND BALANCE
668,447
668,447
2,029,169 1,360,722
FUND BALANCE - BEGINNING
7,792,578
7,792,578
7,792,578 -
FUND BALANCE - ENDING
$ 8,461,025
$ 8,461,025 $
9,821,747 $ 1,360,722
62
CITY OF SCHERTZ, TEXAS
NOTES TO SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
SEPTEMBER 30, 2015
Budgetary Information — The budget is prepared in accordance with accounting principles generally
accepted in the United States of America. The City maintains strict budgetary controls. The objective of
these controls is to ensure compliance with legal provision embodied in the annual appropriated budget
approved by the City Council and as such is a good management control device. Annual budgets are
adopted for the general fund; debt service fund; hotel motel tax, park fund, tree mitigation; police
forfeiture fund, library advisory board fund, and the historical committee fund. Project - length financial
plans are adopted for capital projects funds. Of these budgets, only the General Fund, Debt Service and
Economic Development Corporation are legally adopted.
Budgetary preparation and control is exercised at the department level. Actual expenditures may not
legally exceed appropriations at the fund level.
The City did not exceed the budgeted expenditures in any funds with legally adopted budgets during 2015.
The City does not use encumbrances.
63
CITY OF SCHERTZ, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES — NET PENSION LIABILITY AND RELATED RATIOS
LAST YEAR
Total Pension Liability
2014
Service Cost
$ 2,558,743
Interest (on the Total Pension Liability)
3,245,266
Changes of Benefit Terms
-
Difference between Expected
and Actual Experience
(122,286)
Change of Assumptions
-
Benefit Payments, Including Refunds of
(1,580)
Employee Contributions
(1,068,487)
Net Change in Total Pension Liability
4,613,236
Total Pension Liability - Beginning
45,615,815
Total Pension Liability - Ending
$ 50,229,051
Plan Fiduciary Net Position
2014
Contributions - Employer
$ 2,403,929
Contributions - Employee
1,077,097
Net Investment Income
1,841,586
Benefit Payments, Including Refunds of
Employee Contributions
(1,068,487)
Administrative Expense
(19,219)
Other
(1,580)
Net Change in Plan Fiduciary Net Position
4,233,326
Plan Fiduciary Net Postion - Beginning
32,179,518
Net Pension Liability - Ending
$ 36,412,844
Net Pension Liability - Ending $ 13,816,207
Plan Fiduciary Net Position as a
Percentage of Total Pension Liability 72.49%
Covered Employee Payroll $ 15,389,154
Net Pension Liability as a Percentage
of Covered Employee Payroll 89.78%
64
CITY OF SCHERTZ, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CITY CONTRIBUTIONS
LAST FISCAL YEAR
Schedule of Contributions:
2014
Actuarially Determined Contribution $ 2,487,856
Contributions in Relation to the Actuarially
Determined Contribution 2,487,856
Contribution Deficiency (Excess) $ -
Covered Employee Payroll $ 15,486,735
Contributions as a Percentage of Covered
Employee Payroll 16.06%
Valuation Date:
Actuarially determined contribution rates are calculated as of December 31 and become effective in January, thirteen
(13) months later.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization Period 30 Years
Asset Valuation Method 10 Year Smoothed Market; 15% Soft Corridor
Inflation 3.00%
Salary Increases 3.50% to 12.00% Including Inflation
Investment Rate of Return 7.00%
Retirement Age Experience -based table of rates that are specific to the City's plan of
benefits. Last updated for the 2010 valuation pursuant to an experience
study of the period 2005 - 2009.
Mortality RP2000 Combined Mortality Table with blue Collar Adjustment with
male rates multiplied by 109% and femal rates multiplied by 103% and
projected on a fully generational basis with scale BB.
65
CITY OF SCHERTZ, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
RETIREE HEALTH INSURANCE PLAN
ANALYSIS OF FUNDING PROGRESS
LAST CALENDAR YEAR
ACTUARIAL
ACTUARIAL VALUE OF
VALUATION ASSETS
DATE (a)
UNFUNDED
ACTUARIAL ACTUARIAL
ACCRUED ACCRUED
LIABILITY* LIABILITY
(b) (b -a)
12/31/2013 $ - $ 493,114 $ 493,114
The actuarial valuation conducted as of December 31, 2013 was the first for the plan.
MO•
UNFUNDED
ACTUARIAL
ACCRUED
LIABILITY
AS A
ANNUAL
PERCENTAGE
FUNDING
COVERED
OF COVERED
RATIO
PAYROLL
PAYROLL
(a/b)
(d)
(b -a) /d
0.0%
$ 14,356,845
3.4%
The actuarial valuation conducted as of December 31, 2013 was the first for the plan.
MO•
SUPPLEMENTARY INFORMATION
• Comparative Statements
• General Fund
• Economic Development Corporation
• Debt Service Fund
• Capital Projects Fund
Combining and Comparative Individual Fund Statements - Nonmajor Governmental Funds
• Hotel Occupancy Fund - will account for proceeds of hotel occupancy taxes to be used strictly
for those kinds of programs that promote the tourism industry.
• Tree Mitigation Fund - will account for revenues from permits, grants and donations to preserve
and replace trees in the City.
• Park Fund - will account for revenues from developers' fees (in lieu of park land dedication),
grants, and donations and is designed to monitor and manage improvement of park system.
• Police Forfeitures Fund - will account for revenue received from drug related cases in
conjunction with other law enforcement agencies.
• Library Advisory Board — to account for certain fees generated at the library to be used by the
Board for general improvements to the Library.
• Historical Committee Fund - will account for funds received for the preservation of the history
of the city.
• Parks and Recreation Foundation — to account for revenues from events, fundraisers and
donations to improve and maintain City parks.
67
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
GENERAL FUND
SEPTEMBER 30, 2015 AND 2014
68
2015
2014
ASSETS
Cash and Cash Equivalents
$
268,784
$
734,684
Investments
8,796,303
6,895,148
Receivables (net of allowances):
Taxes
1,860,970
1,725,512
Accounts and Other
2,048,709
1,987,843
Inventory
101,084
88,518
Prepaid Items
-
8,133
Restricted Cash
471,576
425,864
TOTAL ASSETS
$
13,547,426
$
11,865,702
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts Payable
$
913,100
$
1,241,009
Accrued Salaries and Benefits
437,755
456,962
Customer Deposits
58,450
42,513
Due to Other Governments
162,714
205,303
Due to Other Funds
254,057
138,926
Unearned Revenue
42,418
28,285
Total Liabilities
1,868,494
2,112,998
Deferred Inflows of Resources:
Unavailable Revenue
2,062,445
2,030,670
Fund Balance:
Nonspendable:
Inventory
101,084
88,518
Prepaid Items
-
8,133
Restricted for:
Police and Public Safety
189,464
139,884
Municipal Court
683,558
628,459
PEG Capital Fees
509,535
489,509
Scholarships
60,944
54,176
Assigned for:
Property Replacement
785,005
694,916
Special Events
6,657
85,353
Unassigned
7,280,240
5,533,086
Total Fund Balance
9,616,487
7,722,034
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCE
$
13,547,426
$
11,865,702
68
CITY OF SCHERTZ, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
GENERAL FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014
EXPENDITURES
Current:
General Government
2015
2014
REVENUES
10,037,830
9,398,845
Taxes
$ 17,926,685
$ 16,652,245
Permits and Fees
1,447,814
1,365,624
Service Fees
1,609,917
1,592,851
Fines and Fees
1,498,887
1,712,562
Intergovernmental
233,959
218,081
Investment Earnings
24,369
13,655
Miscellaneous
571,416
547,515
TOTAL REVENUES
23,313,047
22,102,533
EXPENDITURES
Current:
General Government
5,187,335
5,232,687
Public Safety
10,037,830
9,398,845
Public Environment
952,663
1,012,607
Parks and Recreation
1,182,906
1,099,359
Cultural
795,436
794,434
Health
404,008
394,918
Administration
1,638,429
1,604,827
Capital Outlay
637,800
383,264
Debt Service:
Principal
31,875
34,376
Interest and Fiscal Charges
8,341
579
TOTAL EXPENDITURES
20,876,623
19,955,896
Excess (Deficiency) of Revenues
Over (Under) Expenditures
2,436,424
2,146,637
OTHER FINANCING SOURCES (USES)
Lease Proceeds - 133,715
Transfers In - 89,416
Transfers Out (541,971) (664,944)
TOTAL OTHER FINANCING
SOURCES (USES) (541,971) (441,813)
Net Change in Fund Balance 1,894,453 1,704,824
Fund Balance at Beginning of Year 7,722,034 6,017,210
Fund Balance at End of Year $ 9,616,487 $ 7,722,034
69
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
ECONOMIC DEVELOPMENT CORPORATION
SEPTEMBER 30, 2015 AND 2014
ASSETS
Cash and Cash Equivalents
Investments
Receivables (net of allowances):
Taxes
Accounts and Other
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts Payable
Accrued Salaries and Benefits
Total Liabilities
Fund Balance:
Restricted for:
Economic Development
Total Fund Balance
TOTAL LIABILITIES AND FUND BALANCE
70
2015 2014
$ 595,001 $ 293,205
8,635,228 6,961,045
611,869 567,202
1,983 1,888
$ 9,844,081 $ 7,823,340
$ 14,402 $ 9,658
7,932 21,104
22,334 30,762
9,821,747 7,792,578
9,821,747 7,792,578
$ 9,844,081 $ 7,823,340
CITY OF SCHERTZ, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
ECONOMIC DEVELOPMENT CORPORATION
FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014
REVENUES
Taxes
Investment Earnings
Miscellaneous Revenue
TOTAL REVENUES
EXPENDITURES
Current:
General Government
Administration
Debt Service:
Principal
Interest and Fiscal Charges
TOTAL EXPENDITURES
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers Out
TOTAL OTHER FINANCING
SOURCES (USES)
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
71
2015 2014
$ 3,442,819 $ 3,521,338
14,461 9,599
1,478 -
3,458,758 3,530,937
279,980 565,322
351,812 519,831
415,000
400,000
15,609
27,671
1,062,401
1,512,824
2,396,357 2,018,113
(367,188) (367,743)
(367,188) (367,743)
2,029,169 1,650,370
7,792,578 6,142,208
$ 9,821,747 $ 7,792,578
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
DEBT SERVICE FUND
SEPTEMBER 30, 2015 AND 2014
ASSETS
Cash and Cash Equivalents
Investments
Receivables (net of allowances):
Taxes
TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCE
Liabilities:
Accrued Interest Payable
Total Liabilities
Deferred Inflows of Resources:
Unavailable Revenue
Fund Balance:
Restricted for:
Debt Service
Total Fund Balance
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCE
72
2015 2014
$ 50,741 $ 34,988
796,437 624,189
59,190 68,928
$ 906,368 $ 728,105
$ 33,742
33,742
59,190 68,928
847,178 625,435
847,178 625,435
$ 906,368 $ 728,105
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
(WITH COMPARATIVE ACTUAL TOTALS FOR 2014)
REVENUES
Property Taxes
Investment Earnings
TOTAL REVENUES
EXPENDITURES
Debt Service:
Principal
Interest and Fiscal Charges
Bond Issue Costs
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES
Transfers In
Issuance of Debt
Premiums from Refunding Bonds
TOTAL OTHER FINANCING
SOURCES
Net Change in Fund Balance
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
Variance with
2015 Final Budget- 2014
Budgeted Amounts Actual Positive Actual
Original Final Amounts (Negative) Amounts
$ 5,338,513 $ 5,338,513 $ 5,415,059 $ 76,546 $ 5,295,577
1,575 1,575 2,575 1,000 1,477
5,340,088 5,340,088 5,417,634 77,546 5,297,054
3,441,134
3,441,134
3,471,133
(29,999)
12,445,083
2,120,572
2,120,572
2,088,796
31,776
2,080,360
74,451
74,451
3,150
71,301
165,650
5,636,157
5,636,157
5,563,079
73,078
14,691,093
(296,069) (296,069) (145,445) 150,624 (9,394,039)
367,188 367,188 367,188
367,188 367,188 367,188
366,138
- 8,450,000
686,137
9,502,275
71,119 71,119 221,743 150,624 108,236
625,435 625,435 625,435 - 517,199
$ 696,554 $ 696,554 S 847,178 $ 150,624 $ 625,435
73
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
CAPITAL PROJECTS FUND
SEPTEMBER 30, 2015 AND 2014
ASSETS
Cash and Cash Equivalents
Investments
Receivables (net of allowances):
Accounts and Other
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts Payable
Due to Other Funds
Total Liabilities
Fund Balance:
Restricted for Capital Improvement
Committed for Capital Improvement
Total Fund Balance
TOTAL LIABILITIES AND FUND BALANCE
74
2015 2014
$ 919,471 $ 1,084,721
8,773,689 9,792,513
5,011 -
$ 9,698,171 $ 10,877,234
$ 772,675 $ 469,483
909 776,005
773,584 1,245,488
8,924,587 9,600,028
- 31,718
8,924,587 9,631,746
$ 9,698,171 $ 10,877,234
CITY OF SCHERTZ, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
CAPITAL PROJECTS FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014
REVENUES
Intergovernmental
Investment Earnings
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current:
General Government
Capital Outlay
Debt Service:
Bond Issue Costs
TOTAL EXPENDITURES
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from Issuances of Debt
Transfers In
Transfers Out
TOTAL OTHER FINANCING
SOURCES (USES)
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
75
2015 2014
$ 159,648 $ 3,688
13,723 17,429
6,000 -
179,371 21,117
- 46,542
1,650,298 7,530,597
4,842 -
1,655,140 7,577,139
(1,475,769) (7,556,022)
245,000 -
569,147 762,358
(45,537) -
768,610 762,358
(707,159) (6,793,664)
9,631,746 16,425,410
$ 8,924,587 $ 9,631,746
CITY OF SCHERTZ, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2015
ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable, Net of Allowance
Taxes
Other
Prepaid Items
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities
Accounts Payable
Total Liabilities
Fund Balance
Nonspendable Prepaids
Restricted for:
Tourism Development
Tree Mitigation
Parks
Police Forfeiture
Library
Historical Committee
Total Fund Balances
TOTAL LIABILITIES AND
FUND BALANCE
Special Revenue Funds
Hotel
Occupancy Park Tree
Fund Fund Mitigation
$ 316,858 $ 232,771 $ 81,677
499,702 1,357 397,656
39,195 - -
16,000 - -
$ 871,755 $ 234,128 $ 479,333
$ 6,786 $ - $ 148,184
6,786 - 148,184
16,000 - -
848,969 - -
- - 331,149
234,128 -
864,969 234,128 331,149
$ 871,755 $ 234,128 $ 479,333
76
Special Revenue Funds
Police Library Parks & Historical
Forfeitures Advisory Recreation Committee
Fund Board Foundation Fund Totals
$ 76,624 $ 30,034 $ 105,721 $ 10,133 $ 853,818
244,353 44,914 - - 1,187,982
- - - - 39,195
- 550 - 550
- - - - 16,000
$ 320,977 $ 74,948 $ 106,271 $ 10,133 $ 2,097,545
$ 16,104 $ 8,165 $ (1,152) $ 129 $ 178,216
16,104 8,165 (1,152) 129 178,216
16,000
- 848,969
- - 331,149
- - 107,423 - 341,551
304,873 - - - 304,873
- 66,783 - - 66,783
- - - 10,004 10,004
304,873 66,783 107,423 10,004 1,919,329
$ 320,977 $ 74,948 $ 106,271 $ 10,133 $ 2,097,545
77
CITY OF SCHERTZ, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES — NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
REVENUES
Occupancy Tax
Permits and Fees
Service Fees
Fines and Fees
Investment Earnings
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current:
General Government
Public Safety
Parks and Recreation
Cultural
Administration
Capital Outlay
TOTAL EXPENDITURES
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
TOTAL OTHER FINANCING
SOURCES (USES)
Net Change in Fund Balance
Fund Balances, Beginning
Special Revenue Funds
Hotel
Occupancy Park Tree
Fund Fund Mitigation
$ 563,734 $ - $ -
- 92,000 191,488
648 107 -
IV/ iyi,yzo
105,106 - -
- 6,038 219,984
66,405 - -
10,930 -
171,511 16,968 219,984
392,871 75,139 (28,056)
(43,500) (33,159) -
(43,500) (33,159) -
349,371 41,980 (28,056)
515,598 192,148 359,205
Fund Balances, Ending $ 864,969 $ 234,128 $ 331,149
78
Special Revenue Funds
Police Library Parks & Historical
Forfeitures Advisory Recreation Committee
Fund Board Foundation Fund Totals
$ - $ - $ - $ - $ 563,734
- 283,488
- 22,064 165,170 - 187,234
35,701 - - - 35,701
363 74 59 - 1,251
- 1,824 51,096 1,172 54,532
36,064 23,962 216,325 1,172 1,125,940
- - - 10,020 115,126
120,571 - - - 120,571
- - 249,269 - 475,291
25,710 - - 25,710
- - - 66,405
- - 15,640 - 26,570
120,571 25,710 264,909 10,020 829,673
(84,507) (1,748) (48,584) (8,848) 296,267
43,500 9,285 52,785
- - (76,659)
43,500 9,285 (23,874)
(84,507) (1,748) (5,084) 437 272,393
389,380 68,531 112,507 9,567 1,646,936
$ 304,873 $ 66,783 $ 107,423 $ 10,004 $ 1,919,329
79
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
HOTEL OCCUPANCY FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
(WITH COMPARATIVE ACTUAL TOTALS FOR 2014)
Excess (Deficiency) of Revenues
Over (Under) Expenses 302,623 302,623 392,871 90,248 273,264
OTHER FINANCING SOURCES
(USES)
Transfers Out (60,000) (60,000) (43,500) 16,500 (227,916)
TOTAL OTHER FINANCING
SOURCES (USES) (60,000) (60,000) (43,500) 16,500 (227,916)
Net Change in Fund Balance
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
242,623 242,623 349,371 106,748 45,348
515,598 515,598 515,598 - 470,250
$ 758,221 $ 758,221 $ 864,969 $ 106,748 $ 515,598
I
Variance with
2015
Final Budget-
2014
Budgeted Amounts
Actual
Positive
Actual
Original
Final
Amounts
(Negative)
Amounts
REVENUES
Occupancy Tax
$ 544,753
$ 544,753
$ 563,734
$ 18,981
$ 552,570
Investment Earnings
600
600
648
48
390
TOTAL REVENUES
545,353
545,353
564,382
19,029
552,960
EXPENDITURES
Current:
General Government
176,325
176,325
105,106
71,219
134,311
Administration
66,405
66,405
66,405
-
145,385
TOTAL EXPENDITURES
242,730
242,730
171,511
71,219
279,696
Excess (Deficiency) of Revenues
Over (Under) Expenses 302,623 302,623 392,871 90,248 273,264
OTHER FINANCING SOURCES
(USES)
Transfers Out (60,000) (60,000) (43,500) 16,500 (227,916)
TOTAL OTHER FINANCING
SOURCES (USES) (60,000) (60,000) (43,500) 16,500 (227,916)
Net Change in Fund Balance
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
242,623 242,623 349,371 106,748 45,348
515,598 515,598 515,598 - 470,250
$ 758,221 $ 758,221 $ 864,969 $ 106,748 $ 515,598
I
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
PARK FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
(WITH COMPARATIVE ACTUAL TOTALS FOR 2014)
REVENUES
Licenses and Permits
Investment Earnings
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current:
Parks and Recreation
Capital Outlay
TOTAL EXPENDITURES
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING USES
Transfers Out
TOTAL OTHER FINANCING
Net Change in Fund Balance
- - 6,038 (6,038) 12,840
60,000 60,000 10,930 49,070 -
60,000 60,000 16,968 43,032 12,840
40,000 40,000 75,139 35,139 188,125
- (32,405) (33,159) 33,159 -
- (32,405) (33,159) 33,159 -
40,000 7,595 41,980 68,298 188,125
FUND BALANCE, BEGINNING
192,148
Variance with
192,148
- 4,023
2015
Final Budget-
2014
Budgeted Amounts
Actual
Positive
Actual
Original Final
Amounts
(Negative)
Amounts
$ 100,000 $ 100,000
$ 92,000
$ (8,000)
$ 198,150
- -
107
107
34
- -
-
-
2,781
100,000 100,000
92,107
(7,893)
200,965
- - 6,038 (6,038) 12,840
60,000 60,000 10,930 49,070 -
60,000 60,000 16,968 43,032 12,840
40,000 40,000 75,139 35,139 188,125
- (32,405) (33,159) 33,159 -
- (32,405) (33,159) 33,159 -
40,000 7,595 41,980 68,298 188,125
FUND BALANCE, BEGINNING
192,148
192,148
192,148
- 4,023
FUND BALANCE, ENDING
$ 232,148
$ 199,743
$ 234,128
$ 68,298 $ 192,148
81
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
TREE MITIGATION FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
(WITH COMPARATIVE ACTUAL TOTALS FOR 2014)
EXPENDITURES
Current:
Parks and Recreation 116,125 212,939 219,984 (103,859) 39,956
TOTAL EXPENDITURES 116,125 212,939 219,984 (103,859) 39,956
Net Change in Fund Balance
(79,915)
(176,729)
Variance with
201,546
FUND BALANCE, BEGINNING
359,205
2015
Final Budget-
2014
FUND BALANCE, ENDING
Budgeted Amounts
Actual
Positive
Actual
Original Final
Amounts
(Negative)
Amounts
REVENUES
Licenses and Permits
$ 36,000 $ 36,000
$ 191,488
$ 155,488
$ 241,273
Miscellaneous
210 210
440
230
229
TOTAL REVENUES
36,210 36,210
191,928
155,718
241,502
EXPENDITURES
Current:
Parks and Recreation 116,125 212,939 219,984 (103,859) 39,956
TOTAL EXPENDITURES 116,125 212,939 219,984 (103,859) 39,956
Net Change in Fund Balance
(79,915)
(176,729)
(28,056) 148,673
201,546
FUND BALANCE, BEGINNING
359,205
359,205
359,205 -
157,659
FUND BALANCE, ENDING
$ 279,290
$ 182,476
$ 331,149 $ 148,673
$ 359,205
82
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
POLICE FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
(WITH COMPARATIVE ACTUAL TOTALS FOR 2014)
REVENUES
Fines and Fees
Investment Earnings
TOTAL REVENUES
EXPENDITURES
Current:
Public Safety
TOTAL EXPENDITURES
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER SOURCES (USES)
Transfers Out
TOTAL OTHER SOURCES
75,000 75,000 120,571 (45,571) 11,049
75,000 75,000 120,571 (45,571) 11,049
(38,400) (38,400) (84,507) (46,107) 27,022
Net Change in Fund Balance (38,400) (38,400) (84,507)
(33,229)
(33,229)
(46,107) (6,207)
FUND BALANCE, BEGINNING
389,380
Variance with
389,380
- 395,587
2015
Final Budget-
2014
Budgeted Amounts
Actual
Positive
Actual
Original Final
Amounts
(Negative)
Amounts
$ 36,200 $ 36,200
$ 35,701
$ (499)
$ 37,749
400 400
363
(37)
322
36,600 36,600
36,064
(536)
38,071
75,000 75,000 120,571 (45,571) 11,049
75,000 75,000 120,571 (45,571) 11,049
(38,400) (38,400) (84,507) (46,107) 27,022
Net Change in Fund Balance (38,400) (38,400) (84,507)
(33,229)
(33,229)
(46,107) (6,207)
FUND BALANCE, BEGINNING
389,380
389,380
389,380
- 395,587
FUND BALANCE, ENDING
$ 350,980
$ 350,980
$ 304,873
$ (46,107) $_389380
83
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
LIBRARY ADVISORY BOARD
FOR THE YEAR ENDED SEPTEMBER 30, 2015
(WITH COMPARATIVE ACTUAL TOTALS FOR 2014)
REVENUES
Service Fees
Investment Earnings
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current:
Cultural
TOTAL EXPENDITURES
Net Change in Fund Balance
Variance with
2015 Final Budget-
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 21,000
$ 21,000
$ 22,064
$ 1,064
60
60
74
14
2,000
2,000
1,824
(176)
23,060
23,060
23,962
902
2014
Actual
$ 21,686
58
30,000
30,000
25,710
4,290
21,257
30,000
30,000
25,710
4,290
21,257
(6,940)
(6,940)
(1,748)
5,192
538
FUND BALANCE, BEGINNING
68,531
68,531
68,531
- 67,993
FUND BALANCE, ENDING
$ 61,591
$ 61,591
$ 66,783
$ 5,192 $ 68,531
84
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
HISTORICAL COMMITTEE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
(WITH COMPARATIVE ACTUAL TOTALS FOR 2014)
REVENUES
Sale of Merchandise
TOTAL REVENUES
EXPENDITURES
Current
General Government
TOTAL EXPENDITURES
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Budgeted Amounts
Original Final
Variance with
2015 Final Budget-
Actual Positive
Amounts (Negative)
$ 1,172 $ 922
1,172 922
2014
Actual
11,100 11,100 10,020 1,080 2,577
11,100 11,100 10,020 1,080 2,577
(10,850) (10,850) (8,848) 2,002 (2,416)
OTHER FINANCING SOURCES
(USES)
Transfers In 10,850 10,850 9,285 (1,565) 2,421
TOTAL OTHER FINANCING
SOURCES (USES) 10,850 10,850 9,285 (1,565) 2,421
Net Change in Fund Balance - - 437 437 5
FUND BALANCE, BEGINNING
9,567
9,567
9,567
- 9,562
FUND BALANCE, ENDING
$ 9,567 $
9,567
$ 10,004 $
437 $ 9,567
85
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
PARKS AND RECREATION FOUNDATION
FOR THE YEAR ENDED SEPTEMBER 30, 2015
(WITH COMPARATIVE ACTUAL TOTALS FOR 2014)
OTHER FINANCING SOURCES
(USES)
Transfers In 23,500 23,500 43,500 20,000 23,500
TOTAL OTHER FINANCING
SOURCES (USES) 23,500 23,500 43,500 20,000 23,500
Net Change in Fund Balance
6,950
6,950
(5,084) (12,034)
Variance with
FUND BALANCE, BEGINNING
112,507
112,507
112,507 -
2015
Final Budget-
2014
FUND BALANCE, ENDING
Budgeted Amounts
Actual
Positive
Actual
Original
Final
Amounts
(Negative)
Amounts
REVENUES
Charges and Fees at Events
$ 246,500
$ 246,500
$ 165,170
$ (81,330)
$ 149,427
Investment Earnings
50
50
59
9
48
Miscellaneous Income and Donations
34,800
34,800
51,096
16,296
77,979
TOTAL REVENUES
281,350
281,350
216,325
(65,025)
227,454
EXPENDITURES
Current
Parks and Recreation
297,900
297,900
249,269
48,631
184,465
Capital Outlay
-
-
15,640
(15,640)
86,606
TOTAL EXPENDITURES
297,900
297,900
264,909
32,991
271,071
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(16,550)
(16,550)
(48,584)
(32,034)
(43,617)
OTHER FINANCING SOURCES
(USES)
Transfers In 23,500 23,500 43,500 20,000 23,500
TOTAL OTHER FINANCING
SOURCES (USES) 23,500 23,500 43,500 20,000 23,500
Net Change in Fund Balance
6,950
6,950
(5,084) (12,034)
(20,117)
FUND BALANCE, BEGINNING
112,507
112,507
112,507 -
132,624
FUND BALANCE, ENDING
$ 119,457
$ 119,457
$ 107,423 $ (12,034)
$_112,507
86
STATISTICAL SECTION
This part of the City of Schertz's annual financial report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary
information says about the City's overall financial health.
Financial Trends (Tables I through 4)
Net Position by Component
Change in Net Position
Fund Balances, Governmental Funds
Changes in Fund Balances, Governmental Funds
These schedules contain trend information to help reader understand how the City's financial
performance and well -being have changed over time.
Revenue Capacity (Tables S through 12�
Tax Revenues by Source, Governmental Funds
Total Water and Sewer Consumption and Rates
Principal Water and Sewer Consumers
Assessed Value and Estimated Actual Value of Taxable Property
Direct and Overlapping Property Tax Rates
Principal Property Taxpayers
Property Tax Levies and Collections
Taxable Assessed Value
These schedules contain information to help readers assess the factors affecting the City's ability to
generate its property and sales tax.
Debt Capacity (Tables 13 through 17)
Ratios of Outstanding Debt by Type
Ratios of General Bonded Debt Outstanding
Direct and Overlapping Governmental Activities Debt
Debt Margin Information
Pledged Revenue Coverage
These schedules present information to help the reader assess the affordability of the City's current
levels of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information (Tables 18 through 19)
Demographic and Economic Statistics
Principal Employers
These schedules offer demographic and economic indicators to help the reader understand how the
City's financial activities take place and to help make comparisons over time and with other
governments.
perating Information (Tables 20 through 22)
Full -time Equivalent City Government Employees by Function
Operating Indicators by Function/Program
Capital Asset Statistics by Function/Program
These schedules contain information about the City's operations and resources to help the reader
understand how the City's financial information relates to the services the City provides and the
activities it performs.
87
CITY OF SCHERTZ, TEXAS
NET POSITION, BY COMPONENT
LAST TEN FISCAL YEARS
Governmental Activities
Net Investment in Capital Assets
Restricted
Unrestricted
Total Governmental Activities
Net Position
Business -Type Activities
Net Investment in Capital Assets
Restricted
Unrestricted
Total Business -Type Activities
Net Position
Primary Government
Net Investment in Capital Assets
Restricted
Unrestricted
Total Primary Government Net Position
Fiscal Year
2006 2007 2008 2009
$
13,257,031
$
32,932,355
$
47,327,175
$
57,324,482
15,888,549
663,973
1,058,514
1,170,786
10,373,267
13,763,070
11,029,326
3,650,287
$
39,518,847
$
47,359,398
$
59,415,015
$
62,145,555
$
24,783,839
$
18,788,933
$
41,350,184
$
50,047,301
1,253,711
1,995,213
-
-
9,879,126
23,658,181
10,286,447
3,633,244
$
35,916,676
$
44,442,327
$
51,636,631
$
53,680,545
$
38,040,870
$
51,721,288
$
88,677,359
$
107,371,783
17,142,260
2,659,186
1,058,514
1,170,786
20,252,393
37,421,251
21,315,773
7,283,531
$
75,435,523
$
91,801,725
$
111,051,646
$
115,826,100
*Note — GASB Statement No. 68 has been prospectively implemented in year -end 2015.
88
TABLE 1
Fiscal Year
2010 2011 2012 2013 2014 2015*
$
54,010,139
$
55,415,699
$
56,616,809
$
57,543,618
$
62,792,671
$
68,125,738
897,324
2,089,971
1,917,098
7,788,354
10,401,728
13,343,280
7,548,859
7,370,101
8,907,326
6,645,418
8,613,239
1,640,519
$
62,456,322
$
64,875,771
$
67,441,233
$
71,977,390
$
81,807,638
$
83,109,537
$
50,778,490
$
51,838,589
$
50,161,157
$
53,071,836
$
53,674,437
$
59,625,205
4,217,098
7,441,722
11,577,645
11,902,282
16,450,988
14,243,922
$
54,995,588
$
59,280,311
$
61,738,802
$
64,974,118
$
70,125,425
$
73,869,127
$
104,788,629
$
107,254,288
$
106,777,966
$
110,615,454
$
116,467,108
$
127,750,943
897,324
2,089,971
1,917,098
7,788,354
10,401,728
13,343,280
11,765,957
14,811,823
20,484,971
18,547,700
25,064,227
15,884,441
$
117,451,910
$
124,156,082
$
129,180,035
$
136,951,508
$
151,933,063
$
156,978,664
89
CITY OF SCHERTZ, TEXAS
CHANGE IN NET POSITION
LAST TEN FISCAL YEARS
Fiscal Year
2006 2007 2008 2009
Expenses
Governmental Activities
General Government
$ 3,982,768
Public Safety
6,403,122
Public Environment
856,260
Parks and Recreation
384,696
Cultural
400,630
Health
231,149
Administration
547,206
Interest and Other Fees
823,818
Total Governmental Activities Expenses
13,629,649
Business -Type Activities
$ 5,808,552
5,920,046
1,864,450
944,529
454,662
272,730
897,628
1,420,086
17,582,683
$ 7,093,762
7,227,406
2,300,425
1,184, 866
492,991
330,736
1,364,194
1,984,151
21,978,531
$ 7,987,977
7,755,056
2,740,755
1,193,525
769,928
377,125
734,584
1,818,984
23,377,934
Water and Sewer
9,821,823
9,502,039
12,379,584
13,568,065
EMS
3,474,249
5,114,911
2,976,112
3,365,544
Total Business -Type Activities
13,296,072
14,616,950
15,355,696
16,933,609
Total Primary Government Expenses
$ 26,925,721
$ 32,199,633
$ 37,334,227
$ 40,311,543
Program Revenues
Governmental Activities
Charges for Service:
General Government
Public Safety
Parks and Recreation
Cultural
Health
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental Aactivities
Program Revenues
Business -Type Activities
Charges for Service:
Water and Sewer
EMS
Capital Grants and Contributions
Total Business -Type Activities
Program Revenues
Total Primary Government
Program Revenues
$ 810,142
1,684,786
143,254
151,028
44,178
1,573,944
5,382,779
$ 1,448,032
1,307,295
196,436
210,417
33,148
497,219
5,789,432
$ 1,497,472
1,643,635
155,168
219,749
41,390
595,401
12,595,635
$ 1,720,279
1,481,004
273,917
219,029
33,930
1,044,884
3,023,377
9,790,111
9,481,979
16,748,450
7,796,420
11,223,658
13,007,618
13,620,440
14,668,137
3,904,818
5,017,343
3,150,428
2,889,518
3,148,100
2,755,376
5,190,039
2,241,726
18,276,576
$ 28,066,687
20,780,337
$ 30,262,316
21,960,907
$ 38,709,357
*Note — GASB Statement No. 68 has been prospectively implemented in year -end 2015.
90
19,799,381
$ 27,595,801
Fiscal Year
2010 2011 2012 2013 2014
$ 7,892,516
7,897,298
2,966,642
1,593,075
809,323
345,455
1,084,430
2,230,452
24,819,191
14,434,709
3,690,007
18,124,716
$ 42,943,907
TABLE 2
2015
$ 8,112,954
$ 7,802,092
$ 7,066,087
$ 6,958,530
$ 6,443,227
8,390,740
9,103,676
9,567,595
10,025,703
10,836,712
3,152,119
3,586,087
3,622,834
3,740,538
3,876,644
1,673,098
1,584,605
1,807,559
1,807,136
2,164,604
876,339
916,967
907,676
870,159
892,194
374,516
357,658
344,647
407,114
470,468
1,321,055
1,117,044
1,180,656
1,942,312
1,845,877
2,251,472
2,302,912
3,340,951
2,352,856
2,226,635
26,152,293
26,771,041
27,838,005
28,104,348
28,756,361
15,280, 871
16,349,967
16,954,871
17,762,116
18,440,959
3,659,031
3,758,425
3,959,445
4,268,125
4,719,526
18,939,902
20,108,392
20,914,316
22,030,241
23,160,485
$ 45,092,195
$ 46,879,433
$ 48,752,321
$ 50,134,589
$ 51,916,846
$ 1,905,600
$ 1,495,563
$ 2,286,488
$ 2,230,800
$ 1,974,637
$ 1,840,547
1,986,536
2,815,029
2,216,385
2,516,547
2,536,476
2,603,476
536,609
524,443
541,512
721,222
917,639
794,003
265,714
228,242
279,267
305,932
309,897
325,178
36,728
39,743
36,746
38,149
32,429
26,744
587,643
717,105
764,997
234,084
220,264
336,252
1,276,465
2,998,115
1,178,573
1,531,740
5,756,456
5,509,530
6,595,295
8,818,240
7,303,968
7,578,474
11,747,798
11,435,730
15,147,332
3,061,414
973,437
19,182,183
$ 25,777,478
17,073,075
3,564,852
2,175,889
22,813,816
$ 31,632,056
17,411,568
17,696,327
19,147,872
20,700,369
3,561,114
4,459,600
4,533,753
4,415,126
828,853
1,301,235
2,809,110
4,158,552
21,801,535
23,457,162
26,490,735
29,274,047
$ 29,105,503
$ 31,035,636
$ 38,238,533
$ 40,709,777
91
CITY OF SCHERTZ, TEXAS
CHANGE IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
Fiscal Year
2006 2007 2008 2009
Net (Expenses) Revenue
Governmental Activities $ (3,839,538) $ (8,100,704) $ (5,230,081) $ (15,581,514)
Business -Type Activities 4,980,504 6,163,387 6,605,211 2,865,772
Total Primary Government Net Expenses $ 1,140,966 $ (1,937,317) $ 1,375,130 $ (12,715,742)
Governmental Revenues and Other
Changes in Net Position
Governmental Activities
Taxes:
Ad Valorem
Sales
Franchise Fees
Hotel /Motel
Mixed Drink
Bingo
Unrestricted Investment Earnings
Miscellaneous
Transfers
Total Governmental Activities
Business -Type Activities
Interest and Investment Earnings
Miscellaneous
Transfers
Total Business -Type Activities
Total Primary Government
Changes In Net Position
Government Activities
Business -Type Activities
Total Primary Government
$
5,705,805
$
7,309,127
$
7,841,928
$
8,980,102
4,704,960
6,026,675
6,175,759
6,017,782
961,462
1,004,116
1,240,642
1,462,199
202,108
259,176
273,558
305,073
20,068
29,451
32,364
31,790
5,124
6,781
4,751
5,105
608,587
1,606,976
1,310,310
364,648
112,306
923,574
293,763
84,748
510,098
(1,224,621)
-
1,060,607
12, 830,518
15,941,255
17,173,075
18,312,054
473,205
976,595
522,595
128,233
195,409
161,048
179,121
110,516
(510,098)
1,224,621
-
(1,060,607)
158,516
2,362,264
701,716
(821,858)
$
12,989,034
$
18,303,519
$
17,874,791
$
17,490,196
$
8,990,980
$
7,840,551
$
11,942,994
$
2,730,540
5,139,020
8,525,651
7,306,927
2,043,914
$
14,130,000
$
16,366,202
$
19,249,921
$
4,774,454
92
TABLE 2 (Continued)
Fiscal Year
2010 2011 2012 2013 2014 2015
$ (18,223,896)
$ (17,334,053)
$ (19,467,073)
$ (20,259,531)
$ (16,356,550)
$ (17,320,631)
1,057,467
3,873,914
1,693,143
2,542,846
4,460,494
6,113,562
$ (17,166,429)
$ (13,460,139)
$ (17,773,930)
$ (17,716,685)
$ (11,896,056)
$ (11,207,069)
$
9,715,645
$
10,280,768
$
11,298,204
$
12,359,146
$
12,794,172
$
14,139,037
6,240,749
7,054,394
7,968,212
9,637,097
10,553,382
10,315,125
1,448,620
1,542,046
1,647,712
1,681,079
2,073,162
2,263,783
348,147
391,181
470,290
503,267
552,570
563,734
32,144
33,630
28,586
30,421
39,917
43,656
4,651
2,173
-
-
-
-
117,776
48,235
60,265
54,270
43,729
56,820
611,510
316,840
621,560
505,268
180,316
197,881
15,421
84,235
(62,294)
25,140
(50,000)
(42,235)
18,534,663
19,753,502
22,032,535
24,795,688
26,187,248
27,537,801
36,824
37,950
36,409
53,089
31,810
47,728
236,173
457,094
666,645
664,521
609,003
344,731
(15,421)
(84,235)
62,294
(25,140)
50,000
42,235
257,576
410,809
765,348
692,470
690,813
434,694
$
18,792,239
$
20,164,311
$
22,797,883
$
25,488,158
$
26,878,061
$
27,972,495
$
310,767
$
2,419,449
$
2,565,462
$
4,536,157
$
9,830,698
$
10,217,170
1,315,043
4,284,723
2,458,491
3,235,316
5,151,307
6,548,256
$
1,625,810
$
6,704,172
$
5,023,953
$
7,771,473
$
14,982,005
$
16,765,426
93
CITY OF SCHERTZ, TEXAS
FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
94
Fiscal Year
2006
2007
2008
2009
Nonspendable Fund Balance:
Inventory
$ 16,706
$ 67,333 $
46,014
$ 44,217
Prepaid Items
-
-
-
-
Note Receivable
-
-
-
-
Total Nonspendable Fund Balance
16,706
67,333
46,014
44,217
Restricted Fund Balance:
Police and Public Safety
304,378
352,791
394,122
355,451
Municipal Court
205,344
191,663
269,961
332,117
PEG Capital Fees
-
-
-
-
Capital Improvement
15,134,814
17,612,092
16,416,440
14,342,553
Debt Service
347,739
556,884
429,289
444,369
Tourism Development
378,823
470,743
502,883
180,710
Tree Mitigation
343,091
271,071
271,071
191,834
Parks
286,072
180,223
169,529
120,501
Historical Committee & Library
36,261
46,784
68,207
163,661
Economic Development Corporation
1,450,801
2,014,135
2,331,951
2,543,010
Scholarships
-
-
-
-
Total Restricted Fund Balance
18,487,323
21,696,386
20,853,453
18,674,206
Committed Fund Balance:
Capital Improvement
-
-
-
-
Total Assigned Fund Balance
-
-
-
-
Assigned Fund Balance:
Property Replacement
-
579,708
400,247
201,850
Special Events
-
127,500
88,778
62,263
Capital Improvement
-
-
-
-
Recycling
12,733
6,780
14,748
-
Historical Committee
-
-
-
10,149
Youth Activities
-
-
-
-
Total Assigned Fund Balance
12,733
713,988
503,773
274,262
Unassigned Fund Balance
7,202,709
8,876,682
5,269,890
1,209,451
Total Governmental Funds
$ 25,719,471
$ 31,354,389 $
26,673,130
$ 20,202,136
94
TABLE 3
Fiscal Year
$ 46,473
$ 43,504
$ 63,556
$ 50,768
$ 88,518
$ 101,084
-
-
2,367
754,443
21,735
16,000
150,000
120,080
120,080
120,080
-
-
196,473
163,584
186,003
925,291
110,253
117,084
421,265
403,799
338,118
496,890
529,264
494,337
402,744
459,244
527,513
646,422
628,459
683,558
-
317,453
409,870
456,175
489,509
509,535
3,914,323
10,219,300
17,104,595
15,360,800
9,600,028
8,924,587
286,215
117,250
227,674
517,199
625,435
847,178
250,379
301,517
390,561
470,250
501,996
848,969
164,424
173,999
217,600
157,659
359,205
331,149
79,317
84,329
90,718
136,647
304,655
341,551
200,359
231,686
65,409
77,554
78,098
76,787
3,548,067
3,394,850
4,366,005
6,022,128
7,792,578
9,821,747
-
-
-
-
54,176
60,944
9,267,093
15,703,427
23,738,063
24,341,724
20,963,403
22,940,342
-
-
-
165,000
31,718
-
-
-
-
165,000
31,718
-
202,341
202,723
322,656
456,034
694,916
785,005
142,465
93,447
92,555
99,770
31,177
6,657
-
162,113
243,546
145,167
-
-
9,940
9,940
-
-
-
-
-
-
11,090
-
-
-
354,746
468,223
669,847
700,971
726,093
791,662
1,372,779
1,899,105
2,560,667
4,206,734
5,587,262
7,280,240
$ 11,191,091
$ 18,234,339
$ 27,154,580
$ 30,339,720
$ 27,418,729
$ 31,129,328
95
CITY OF SCHERTZ, TEXAS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
REVENUES
Taxes
Permits and Fees
Service Fees
Fines and Fees
Intergovernmental
Other Revenue
TOTAL REVENUES
EXPENDITURES
Current:
General Government
Public Safety
Public Environment
Parks and Recreation
Cultural
Health
Administration
Capital Outlay
Debt Service:
Principal
Interest and Fiscal Charges
Bond Issue Costs
TOTAL EXPENDITURES
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING
SOURCES (USES)
Bonds & Debt Issuances
Premium (Discount) on Bond Issue
Payment to Refund Agent
Transfers In
Transfers (Out)
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCE
Debt Service as a percentage of
Noncapital Expenditures
Fiscal Year
2006 2007 2008 2009
$ 12,122,079
$ 15,093,799
$ 15,583,058
$ 16,786,590
1,475,619
1,062,054
992,953
822,105
1,322,743
1,230,634
1,018,197
973,781
1,157,480
1,397,101
1,387,677
1,517,821
26,058
267,420
4,376,072
1,444,966
767,075
2,510,021
1,864,877
1,066,097
16,871,054
21,561,029
25,222,834
22,611,360
2,934,800
4,994,598
6,184,705
6,765,315
5,020,684
5,665,671
6,638,352
7,235,501
558,020
655,930
745,307
884,158
604,521
843,870
800,079
869,166
388,679
443,455
667,995
821,048
216,655
263,918
295,156
348,448
903,154
1,115,737
1,517,785
941,675
6,127,735
5,504,679
19,189,505
14,963,950
1,499,270
1,586,092
2,025,043
4,816,928
799,738
1,380,444
1,617,876
1,987,384
165,125
63,969
122,290
191,066
19,218,381
22,518,363
39,804,093
39,824,639
(2,347,327) (957,334) (14,581,259) (17,213,279)
15,319,996 8,306,805 9,900,000 9,681,678
123,057 - - -
529,598 354,150 593,294 2,778,593
(224,500) (2,068,703) (593,294) (1,717,986)
15,748,151 6,592,252 9,900,000 10,742,285
$ 13,400,824 $ 5,634,918 $ (4,681,259) $ (6,470,994)
17.6% 16.1% 14.6% 26.1%
96
TABLE 4
Fiscal Year
2010 2011 2012 2013 2014 2015
$ 17,811,547
$ 19,309,675
$ 21,401,991
$ 24,181,863
$ 26,021,730
$ 27,348,297
1,160,197
1,776,292
1,363,461
1,609,954
1,805,047
1,731,302
1,492,130
1,645,489
1,547,007
1,739,387
1,763,964
1,797,151
1,655,183
1,452,610
2,027,613
1,927,744
1,750,311
1,534,588
570,386
1,216,211
1,000,413
492,332
221,769
393,607
1,161,182
603,498
969,921
767,110
671,731
689,805
23,850,625
26,003,775
28,310,406
30,718,390
32,234,552
33,494,750
6,989,561
7,164,667
7,094,834
6,311,276
5,981,439
5,582,441
7,409,720
7,885,119
8,690,849
9,113,840
9,409,894
10,158,401
816,939
846,150
976,327
951,528
1,012,607
952,663
1,178,455
1,195,171
1,398,692
1,412,329
1,338,232
1,658,197
872,668
937,611
845,124
840,595
815,691
821,146
331,860
360,746
346,318
341,961
394,918
404,008
1,251,368
1,506,831
1,249,557
1,289,078
2,270,041
2,056,646
11,347,876
2,956,511
1,299,843
3,277,397
8,000,467
2,314,668
1,893,086
2,371,070
2,704,898
3,217,325
3,695,597
3,918,008
2,183,852
2,066,221
2,313,510
2,381,171
2,108,610
2,112,746
20,000
244,237
254,971
31,750
165,650
7,992
34,295,385
27,534,334
27,174,923
29,168,250
35,193,146
29,986,916
(10,444,760)
(1,530,559)
1,135,483
1,550,140
(2,958,594)
3,507,834
1,418,294 8,206,572 14,370,000 1,635,000 8,583,715 245,000
- 283,000 175,473 - 686,137 -
- - (6,698,421) - (9,182,250) -
242,539 348,846 139,635 788,084 1,243,833 989,120
(227,118) (264,611) (201,929) (788,084) (1,293,832) (1,031,355)
1,433,715 8,573,807 7,784,758 1,635,000 37,603 202,765
$ (9,011,045) $ 7,043,248 $ 8,920,241 $ 3,185,140 $ (2,920,991) $ 3,710,599
17.7% 17.4% 19.5% 21.6% 21.3% 21.9%
97
CITY OF SCHERTZ, TEXAS
TAX REVENUE BY SOURCE — GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
98
TABLE 5
Fiscal
Mixed
Hotel
Total
Year
Property
Sales & Use
Franchise
Beverage
Bingo
Occupancy
Revenue
2015
$ 14,161,999
$ 10,315,125
$ 2,263,783
$ 43,553
$ 103
$ 563,734
$ 27,348,297
2014
12,802,668
10,553,382
2,073,162
39,917
31
552,570
26,021,730
2013
12,329,999
9,637,097
1,681,079
30,421
-
503,267
24,181,863
2012
11,287,191
7,968,212
1,647,712
28,586
-
470,290
21,401,991
2011
10,286,251
7,054,394
1,542,046
33,630
2,173
391,181
19,309,675
2010
9,737,236
6,240,749
1,448,620
32,144
4,651
348,147
17,811,547
2009
8,964,642
6,017,781
1,462,199
31,790
5,105
305,073
16,786,590
2008
7,855,984
6,175,759
1,240,642
32,364
4,751
273,558
15,583,058
2007
7,767,600
6,026,675
1,004,116
29,451
6,781
259,176
15,093,799
2006
6,261,532
4,671,785
961,462
20,068
5,124
202,108
12,122,079
98
CITY OF SCHERTZ, TEXAS
TOTAL WATER AND SEWER CONSUMPTION AND RATES
LAST TEN FISCAL YEARS
Fiscal
Year
Ended
September 30,
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Total Water &
Sewer Consumption
(In Gallons)
1,477,570,300
1,549,888,700
1,550,039,700
1,604,952,300
1,676,323,900
1,231,376,600
1,511,567,900
855,779,200
614,508,100
714,230,400
99
Water &
Sewer
Base Rate
19.71
19.32
18.94
18.94
18.94
18.94
18.94
15.94
15.94
15.94
Water & Sewer
Initial Rate Per
1,000 Gallons
$ 2.43
2.39
2.34
2.34
2.34
2.25
2.16
1.92
1.72
1.69
TABLE 6
CITY OF SCHERTZ, TEXAS
PRINCIPAL WATER AND SEWER CONSUMERS
CURRENT YEAR AND NINE YEARS AGO
100
TABLE 7
2015
2006
Total
Percentage of
Total
Percentage of
Water
Total City
Water
Total City
Consumption
Water
Consumption
Water
Consumers
(in Gallons)
Rank
Consumption
(in Gallons)
Rank
Consumption
Caterpillar Inc.
15,705,500
1
1.01%
Schertz 1518
11,373,500
2
0.73%
Beck Readymix
9,916,200
3
0.64%
4,930,800
1
0.88%
Sycamore Creek Apartments
9,908,400
4
0.64%
SYSCO
8,754,100
5
0.56%
Big Time Management Properties
8,497,800
6
0.55%
Sebastian Apartments
8,002,100
7
0.52%
Pecan Grove TX LLC
7,717,900
8
0.50%
2,176,000
3
0.39%
City of Schertz (Ball Park)
7,271,400
9
0.47%
Caterpillar Inc.
6,426,400
10
0.41%
Wal -mart Supercenter
3,052,600
2
0.54%
Sprint PCS
2,073,200
4
0.37%
Manco Structures LTD
1,812,600
5
0.32%
Val Verde
1,787,900
6
0.32%
H2 Auto Inc.
1,623,700
7
0.29%
Diamond Shamrock
1,542,400
8
0.27%
The Oak at Green Valley
1,365,300
9
0.24%
Republic Beverage Company
1,340,800
10
0.24%
TOTAL
93,573,300
6.03%
21,705,300
3.85%
Total City Water Consumption
1,552,387,300
563,511,000
100
CITY OF SCHERTZ, TEXAS
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
TABLE 8
Fiscal
Year
Ended
September 30,
Total Taxable
Assessed Value
Total Direct
Tax Rate
2015
$ 31037,267,611
0.4974
2014
2,752,562,574
0.4974
2013
2,600,365,551
0.4999
2012
2,411,270,623
0.4843
2011
21363,893,708
0.4493
2010
2,342,355,490
0.4342
2009
2,230,825,045
0.4090
2008
2,221,073,744
0.4090
2007
11893,240,916
0.4317
2006
1,621,059,759
0.3977
Source: Bexar, Comal and Guadalupe County Appraisal Districts
NOTES: Property in the City of Schertz is reassessed every year at estimated actual value. For this reason, assessed
value is equal to estimated actual value. Tax rates are per $100 of assessed value. Total taxable assessed
value is before any applicable freeze adjustments.
101
Source
NOTE:
Fiscal
Year
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Fiscal
Year
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
CITY OF SCHERTZ, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(UNAUDITED)
City Direct Rates
Overlapping School Districts
Schertz-
Cibolo-
Basic
Debt
Universal
Comal
Rate
Service
Total
City ISD
ISD
0.3010
0.1964
0.4974
1.4900
1.3900
0.3010
0.1964
0.4974
1.4900
1.4300
0.2993
0.2006
0.4999
1.4600
1.4300
0.2993
0.1850
0.4843
1.4350
1.4300
0.2993
0.1500
0.4493
1.4350
1.3700
0.2842
0.1500
0.4342
1.4200
1.3100
0.2590
0.1500
0.4090
1.3850
1.3100
0.2590
0.1500
0.4090
1.3150
1.3100
0.2805
0.1512
0.4317
1.6100
1.6400
0.3005
0.0972
0.3977
1.7200
1.8000
County
0.3145
0.3269
0.3269
0.3269
0.3269
0.3269
0.3269
0.3269
0.3269
0.3312
Hospital
District
0.2762
0.2762
0.2762
0.2762
0.2762
0.2662
0.2610
0.2374
0.2439
0.2439
TABLE 9
Overlapping Counties
Bexar Comal Guadalupe
River
Authority
0.0175
0.0178
0.0174
0.0174
0.0167
0.0160
0.0160
0.0160
0.0160
0.0164
Bexar, Comal and Guadalupe County Tax Offices
Community
College
District
0.1492
0.1492
0.1492
0.1416
0.1416
0.1359
0.1359
0.1346
0.1371
0.1071
County
0.3429
0.3504
0.3504
0.3504
0.3340
0.3130
0.3080
0.3180
0.3152
0.3537
County
0.3941
0.3999
0.4036
0.4036
0.3999
0.3895
0.3895
0.3895
0.4031
0.4031
Overlapping rates are those of local and county governments that apply within the City of Schertz. Not all
overlapping rates apply to all City of Schertz property owners.
102
CITY OF SCHERTZ, TEXAS
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
2015
Source: Bexar, Comal and Guadalupe County Appraisal Districts
103
TABLE 10
2006
Percentage
Taxable
of
of
Assessed
Total City
Taxpayer
Value
Rank
Caterpillar Inc.
$ 157,733,450
1
SYSCO San Antonio, Inc.
100,587,449
2
Republic Beverage Co. Distribution
48,082,040
3
San Antonio MTA LP
23,253,974
4
GE Oil & Gas Inc.
19,500,000
5
Visionary Properties
18,058,140
6
Wal -Mart Real Estate Business Trust
12,459,300
7
H.E.Butt Grocery Co.
11,301,240
8
EM Limited Partnership
9,875,405
9
Case Cameron LLC
5,878,860
10
Block Distributing, Inc.
Sprint Spectrum, LP
Verde Tri County, LTD
Eye Care Centers of America, Inc.
Prologis North American Properties
Atlantic Financial Group LTD
Wal -Mart Real Estate Business Trust
Legacy Oaks Apartments, Ltd.
TOTALS
$ 406,729,858
TOTAL TAXABLE
ASSESSED VALUE
$ 3,037,267,611
Source: Bexar, Comal and Guadalupe County Appraisal Districts
103
TABLE 10
2006
Percentage
Percentage
of
of
Total City
Total City
Taxable Taxable
Taxable
Assessed Assessed
Assessed
Value Value
Rank Value
5.19%
3.31%
1.58%
0.77% $ 28,007,240 1 1.73%
0.64%
0.59%
0.41%
0.37% 9,793,856 6 0.60%
0.33%
0.19%
19,686,530
2
1.21%
13,846,660
3
0.85%
12,570,214
4
0.78%
11,081,946
5
0.68%
8,157,730
7
0.50%
8,072,983
8
0.50%
7,897,206
9
0.49%
7,693,601
10
0.47%
13.39% $ 126,807,966
7.82%
$ 1,621,059,759
CITY OF SCHERTZ, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
Source: Guadalupe County Tax Office
104
TABLE 11
Collected Within
Total Collections
Fiscal Year
Taxes Levied
Fiscal Year of Levy
Collections In
To Date
Ended
for the
% of
Subsequent
% of
September 30,
Fiscal Year
Amount
Levy
Years
Amount
Levy
2015
$ 14,793,867
$ 14,738,760
99.63%
$ -
$ 14,738,760
99.63%
2014
13,383,759
13,297,258
99.35%
40,404
13,337,662
99.66%
2013
12,536,540
12,455,336
99.35%
32,527
12,487,863
99.61%
2012
11,239,572
11,159,974
99.29%
74,228
11,234,202
99.95%
2011
9,978,430
9,895,240
99.17%
74,023
9,969,263
99.91%
2010
9,639,945
9,559,899
99.17%
70,336
9,630,235
99.90%
2009
8,800,927
8,703,978
98.90%
87,668
8,791,646
99.89%
2008
7,793,405
7,711,714
98.95%
74,754
7,786,468
99.91%
2007
7,048,818
6,957,827
98.71%
81,415
7,039,242
99.86%
2006
5,645,611
5,576,559
98.78%
63,882
5,640,441
99.91%
Source: Guadalupe County Tax Office
104
CITY OF SCHERTZ, TEXAS
TAXABLE ASSESSED VALUE
LAST TEN FISCAL YEARS
(UNAUDITED)
*Taxable Assessed Value is before any applicable freeze adjustments.
Source: Bexar, Comal, and Guadalupe County Appraisal Districts.
105
TABLE 12
Fiscal
Year
Taxable
Total Taxable
Total
Ended
Value
Residential
Commercial
Tax- Exempt
Other
Assessed
Direct
September 30,
January 1,
Property
Property
Property
Property
Value*
Tax Rate
2015
2014
$ 1,568,651,309
$ 1,793,803,709
$ (460,271,461)
$ 135,084,054 $
3,037,267,611
0.4974
2014
2013
1,445,731,509
1,540,565,195
(340,747,650)
107,013,520
2,752,562,574
0.4974
2013
2012
1,383,423,359
1,396,349,905
(285,245,142)
105,837,429
2,600,365,551
0.4999
2012
2011
1,337,223,390
1,233,687,039
(262,591,896)
102,952,090
2,411,270,623
0.4843
2011
2010
1,272,970,256
1,253,600,729
(280,015,063)
117,337,786
2,363,893,708
0.4493
2010
2009
1,234,950,439
1,237,284,878
(251,217,268)
121,337,441
2,342,355,490
0.4342
2009
2008
1,169,845,869
1,191,387,341
(248,544,582)
118,136,417
2,230,825,045
0.4090
2008
2007
1,096,587,777
1,276,925,393
(345,068,394)
192,628,968
2,221,073,744
0.4090
2007
2006
990,263,111
1,033,634,277
(271,404,640)
140,748,168
1,893,240,916
0.4317
2006
2005
901,544,236
810,987,398
(182,861,671)
91,389,796
1,621,059,759
0.3977
*Taxable Assessed Value is before any applicable freeze adjustments.
Source: Bexar, Comal, and Guadalupe County Appraisal Districts.
105
CITY OF SCHERTZ, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
NOTES: a Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.
b. See Table 18 for personal income and population data for the City. These ratios are calculated using
personal income and population for the prior calendar year.
106
Governmental Activities
General
Certificates
Certificates
Fiscal
Obligation
of
Tax
Capital
Revenue
of
Year
Bonds
Obligation
Notes
Lease
Bonds
Obligation
2015
$ 53,410,128
$ 277,801
$ 1,210,000
$ 91,495
$ -
$ 8,955,753
2014
55,300,000
543,934
1,585,000
123,370
-
9,436,066
2013
58,060,000
801,767
2,155,000
22,398
2,215,000
5,048,233
2012
60,205,000
1,581,300
190,000
60,190
2,355,000
5,383,700
2011
47,505,000
8,625,800
250,000
97,188
2,490,000
5,704,200
2010
37,530,000
12,415,650
310,000
133,408
5,460,000
6,149,350
2009
38,485,000
13,338,850
-
-
5,805,000
6,571,150
2008
32,790,000
14,243,700
-
107,078
6,230,000
6,976,300
2007
23,950,000
15,232,893
-
215,854
6,645,000
7,237,107
2006
18,740,000
13,560,000
-
319,996
7,055,000
-
NOTES: a Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.
b. See Table 18 for personal income and population data for the City. These ratios are calculated using
personal income and population for the prior calendar year.
106
Business -Type
Activities
5.99%
1,830
6.24%
1,956
6.44%
1,964
8.08%
Public
General
2,015
7.04%
Total
Facility
Obligation
Capital
Tax
Primary
Loan
Bonds
Lease
Notes
Government
$ -
$ 3,490,564
$ 231,803
$ 1,640,000
$ 69,307,544
-
3,960,000
347,705
65,000
71,361,075
-
2,120,000
-
130,000
70,552,398
-
2,405,000
-
190,000
72,370,190
-
2,675,000
-
250,000
67,597,188
-
-
-
310,000
62,308,408
7,000
-
-
-
64,207,000
14,000
-
-
-
60,361,078
21,000
-
-
-
53,301,854
28,000
-
-
-
39,702,996
107
TABLE 13
Percent
of Gross
Income
*Per
Capita
5.99%
1,830
6.24%
1,956
6.44%
1,964
8.08%
2,098
7.95%
2,015
7.04%
1,916
7.03%
2,041
7.19%
1,883
6.02%
1,677
1.56%
1,262
CITY OF SCHERTZ, TEXAS
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
TABLE 14
Percentage of
General Bonded Debt Outstanding
Value of
Per
Property
Capita
General
Certificates
Available in
1,517
Fiscal
Obligation
of
Debt Service
2.36%
Year
Bonds
Obligation
Funds
Total
2.09%
2015
$ 53,410,128
$ 277,801
$ (847,178)
$ 52,840,751
2014
55,300,000
543,934
(517,199)
55,326,735
2013
58,060,000
801,767
(227,674)
58,634,093
2012
60,205,000
1,581,300
(117,250)
61,669,050
2011
47,505,000
8,625,800
(286,215)
55,844,585
2010
37,530,000
12,415,650
(444,369)
49,501,281
2009
38,485,000
13,338,850
(429,289)
51,394,561
2008
32,790,000
14,243,700
(556,884)
46,476,816
2007
23,950,000
15,232,893
(347,739)
38,835,154
2006
18,740,000
13,560,000
(263,740)
32,036,260
TABLE 14
Percentage of
Actual Taxable
Value of
Per
Property
Capita
1.74%
1,396
2.01%
1,517
2.25%
1,632
2.56%
1,788
2.36%
1,665
2.11%
1,522
2.30%
1,633
2.09%
1,450
2.05%
1,222
1.98%
1,019
NOTE: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements. See
Table 8 for the City's property tax value data. City population data can be found in Table 18.
108
CITY OF SCHERTZ, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
CURRENT YEAR
Governmental Unit
Debt repaid with property taxes:
Debt
Outstanding
Estimated
Percentage
Applicable*
TABLE 15
Estimated
Share of
Overlapping
Debt
Alamo CCD
$ 450,384,988
19.00%
$ 85,573,148
Bexar County
1,163,579,737
19.00%
221,080,150
Bexar County Hospital District
702,750,441
19.00%
133,522,584
Comal County
48,492,694
4.45%
2,157,925
ComalISD
596,231,727
2.60%
15,502,025
Guadalupe County
10,900,000
21.31%
2,322,790
Schertz - Cibolo- Universal ISD
296,953,303
50.56%
150,139,589
Subtotal, Overlapping Debt
City Governmental Activities Direct Debt
TOTAL NET OVERLAPPING DEBT
610,298,211
52,840,751
$ 663,138,962
NOTES: The overlapping debt was received from the Municipal Advisory Council of Texas. Details regarding the City's
outstanding debt can be found in the notes to the basic financial statements.
109
CITY OF SCHERTZ, TEXAS
DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Assessed Value, 2014 Tax Roll
Debt Limit - Texas statues do not provide a legal
debt limit for cities; however, through accepted
practice a practical "economic" debt limit is
considered to be 10% of the assessed value.
Amount of Applicable Debt:
General Bonded Debt
Less Debt Service Fund Balance
DEBT MARGIN
Total Net Debt as a Percentage
of Debt Margin
TABLE 16
$ 3,037,267,611
$ 303,726,761
$ 52,840,751
(847,178) 51,993,573
$ 251,733,188
20.65%
110
Fiscal Year
2012
2013
2013
Assessed Value
$
2,411,270,623
$
2,600,365,551
$
2,752,562,574
Debt Limit
$
241,127,062
$
260,036,555
$
275,256,257
Total Net Debt Applicable to Limit
60,973,626
60,499,568
56,803,499
Total Debt Margin
$
180,153,436
$
199,536,987
$
218,452,758
2009
2010
2011
Assessed Value
$
2,230,825,045
$
2,342,355,490
$
2,363,893,708
Debt Limit
$
223,082,505
$
234,235,549
$
236,389,371
Total Net Debt Applicable to Limit
50,414,481
48,819,435
55,298,550
Total Debt Margin
$
172,668,024
$
185,416,114
$
181,090,821
2006
2007
2008
Assessed Value
$
1,621,059,759
$
1,893,240,916
$
2,221,073,744
Debt Limit
$
162,105,976
$
189,324,092
$
222,107,374
Total Net Debt Applicable to Limit
18,392,261
23,488,500
45,466,903
Total Debt Margin
$
143,713,715
$
165,835,592
$
176,640,471
110
CITY OF SCHERTZ, TEXAS
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
TABLE 17
Water Revenue Bonds
NOTE: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.
Operating expenses do not include depreciation, interest, amortization or joint venture expenses.
111
Utility
Less:
Net
Debt Service
Fiscal
Service
Operating
Available
Year
Charges
Expenses
Revenue
Principal
Interest
Coverage
2015
$ 20,700,369
$ 15,916,597
$ 4,783,772
$ 1,448,407
$ 428,912
2.55
2014
19,147,872
15,246,653
3,901,219
1,010,500
426,100
2.72
2013
17,696,327
14,553,274
3,143,053
728,800
359,680
2.89
2012
17,411,568
14,185,126
3,226,442
697,100
396,968
2.95
2011
16,843,780
13,229,037
3,614,743
577,824
409,801
3.66
2010
14,993,648
12,399,880
2,593,768
615,400
502,629
3.74
2009
14,533,390
9,973,940
4,559,450
685,400
534,634
3.74
2008
13,620,440
9,040,264
4,580,176
665,400
558,569
4.86
2007
13,476,288
7,896,319
5,579,969
645,800
501,397
5.82
2006
11,289,876
6,955,000
4,334,876
390,000
354,965
5.47
NOTE: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.
Operating expenses do not include depreciation, interest, amortization or joint venture expenses.
111
CITY OF SCHERTZ, TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Sources: Population, personal income, median age and education level information provided by City Economic
Development Corporation. School enrollment provided by Schertz- Cibolo- Universal City Independent
School District. Unemployment data provided by Texas Workforce Commission.
112
TABLE 18
Education
Per Capita
Level in
Personal
Personal
Median
Years of
School
Unemployment
Year
Population
Income
Income
Age
Schooling
Enrollment
Rate
2015
37,865
$1,157,835,970
$ 30,578
36.1
15.6
15,009
2.9%
2014
36,477
1,144,465,875
31,375
36.9
15.4
14,515
3.2%
2013
35,929
1,095,331,494
30,486
37.1
15.4
14,058
5.1%
2012
34,499
895,739,206
25,964
36.8
15.4
13,016
5.5%
2011
33,544
850,069,800
25,342
37.8
15.4
12,533
5.6%
2010
32,523
885,015,876
27,212
34.4
15.4
12,330
5.7%
2009
31,465
913,919,790
27,923
36.5
13.9
11,700
5.1%
2008
32,057
839,701,058
26,194
35.1
14.0
10,991
5.0%
2007
31,788
885,836,196
27,867
36.3
14.0
9,470
4.0%
2006
31,452
2,543,051,460
80,855
36.1
18.0
8,380
4.4%
Sources: Population, personal income, median age and education level information provided by City Economic
Development Corporation. School enrollment provided by Schertz- Cibolo- Universal City Independent
School District. Unemployment data provided by Texas Workforce Commission.
112
CITY OF SCHERTZ, TEXAS
TOP TEN PRINCIPAL EMPLOYERS
CURRENT YEAR AND EIGHT YEARS AGO
TABLE 19
Source: City Economic Development Corporation
Note: Principal employer information is not available prior to 2007
113
2015
2007
Percentage
Percentage
of Total City
of Total City
Employer
Employees
Employment
Employees
Employment
Schertz /Cibolo/UC ISD
1,810
10.46%
1,300
9.47%
Amazon.com
1,073
6.20%
Sysco Central Texas
837
4.84%
GE Oil & Gas
600
3.47%
Brandt Engineering
437
2.53%
HVHC
400
2.31%
Republic Beverage Company
382
2.21%
100
0.73%
HEB Grocery CO
350
2.02%
220
1.60%
City of Schertz
341
1.97%
232
1.69%
Wal -Mart Stores
323
1.87%
420
3.06%
FedEx Ground
205
1.18%
165
1.20%
Valero Diamond Distribution
167
1.22%
Metro Ambulance LP
110
0.80%
Manco
100
0.73%
Lowe's
83
0.60%
TOTAL
6,758
39.06%
2,897
21.10%
Source: City Economic Development Corporation
Note: Principal employer information is not available prior to 2007
113
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CITY OF SCHERTZ, TEXAS
FULL -TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
TABLE 20
Source: City Adopted Budgets
Note: Full -time equivalent is based on the schedule hours ofpositions to a 40 hour work week.
114
Full -Time Equivalent Employees as of September 30,
Function
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
General Government
City Manager
3
4
6
7
6
6
7
7
6
6
Court Support
4
4
0
0
0
0
0
0
0
0
Municipal Court
3.5
5
6
4
5
5
5
6
6
6
Customer Relations
0
2
4
4
4
4.5
4.5
4.5
4.5
4.5
Planning and Zoning
3
4
5
4
4
4
3
3
3
3
General Services
6.5
9
9
9.5
13.5
14.7
14.7
12.7
12.7
12.7
City Secretary
2
2
2
2
2
2
2
2
2
2
Public Affairs
1
2
3
3
3
3
4
4
4
4
Records Management
2
2
3
3
1
1
1
1
1
1
Schertz Magazine
0
0
0
0
0
2
2
2
2
2
Engineer
0
1
3
1
2
2
4
3
3
3
GIS
0
0
0
2
2
2
2
2
2
2
Information Technology
3
3
3
3
3
4
4
6
6
6
Human Resources
2
2
3
3
4
4
4
4
4
4
Finance
5
5
6
6
6
6
6
6
7
8
Purchasing
0
1
2
2
5
5
5
5
4
3
Fleet Service
3
3
3
3
3
4
4
4
6
6
Building Maintenance
0
0
0
0
0
0
0
2
3
3
Public Safety
Police
58.7
63.6
68.6
64.6
64.6
64.6
69.7
74.7
74.9
75.2
Fire
32
32
32
32
32
32
32
32
33
36
Inspections
6
8
8
7
6
7
7
7
9
9
Marshal Services
0
0
0
5
5
8
8
8
8
8
Health
Animal Control
5
5
6
6
6
6
6
6
7
7
Parks and Culture
Parks
7
8
8
8
8
9
9
9
9
9
Pools
12.5
12.5
0
0
0
0
0
0
0
0
Event Facilities
0
1
1
1
1
2
1
1
1
1
Library
9.5
9.5
10.5
11
13.5
13.5
14
14
14
14
Public Environment
Streets
11
11
13
13
13
14
14
14
14
14
Public Works
Public Works
6
6
6
6
5
4
4
6
6
6
Business Office
10
9
10
10
10
10
10
10
10
10
Water and Sewer
12
14
14
16
16
17
17
16
16
16
Drainage
5
5
6
7
7
7
7
8
8
8
EMS
22
23.5
30
34
34
34
35
35
36
37
Economic Development
3
3
3
4
4
3
4
4
4
4
TOTAL
237.7
260.1
274.1
281.1
288.6
300.3
309.9
318.9
326.1
330.4
Source: City Adopted Budgets
Note: Full -time equivalent is based on the schedule hours ofpositions to a 40 hour work week.
114
CITY OF SCHERTZ, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
115
Fiscal Year
Function
2006
2007
2008
2009
2010
General Government
Building Permits Issued
9,948
5,811
2,869
5,181
4,806
Schertz Tales
Number of Magazines printed
-
72,000
108,000
120,000
144,000
Police
CFS
16,642
25,478
37,829
36,319
37,269
Arrests
526
608
719
873
790
Traffic Violations
10,487
13,461
18,820
20,452
19,259
Accidents
1,192
1,484
1,475
1,491
1,606
Fire
Number of Rescue /Other Responses
1,216
1,459
978
1,536
1,671
Number of Fire Responses
129
103
141
135
76
Number of Inspections
356
302
461
447
425
Number of Training Classes Conducted
136
694
595
264
107
Number of Pre -Plan Inspections
452
642
EMS
Requests for Transport
5,171
6,256
6,619
7,061
7,281
Actual Transports
2,937
3,634
4,193
4,341
4,575
EMT Students
-
45
73
80
80
Marshal Service
Warrants Issued
-
-
5,974
5,444
Warrants Cleared
3,836
4,023
Food Establishment Permits
134
129
Food Establishment Inspection
209
202
Foster /Adoption Inspections
-
-
-
34
27
Parks
Facility Reservations
416
516
983
671
719
Community and Civic Centers
Civic Center
-
-
-
484
594
Community Center Rentals
-
635
North Community Center Rentals
-
-
Animal Services
Number of Animals Handled
1,804
2,021
Number of Adoptions
255
249
Number of Return to Owners
252
279
Number of Transfers
-
-
-
415
451
Library
Annual Circulation
276,873
292,909
278,826
263,131
392,528
Library Visits
181,603
179,630
175,435
188,118
257,235
Library Program Attendance
5,064
6,680
7,444
10,499
10,610
Registered Users
19,342
19,595
23,327
20,360
24,628
Water
New Connections
532
91
1,474
446
509
Water Main Breaks
46
29
72
72
25
Total Consumption (thousands of gallons)
13,322,380
11,535,927
14,460,239
15,115,679
12,313,766
Daily Average Consumption
(thousands of gallons)
37,007
31,606
39,617
38,550
33,736
Peak Daily Consumption
(thousands of gallons)
10,540
5,379
5,804
7,520
7,040
Total Customers
10,118
10,598
10,900
10,198
10,134
Average Use Per Connection
7,060
1,089
6,378
6,913
5,054
Sewer
Total Customers
8,990
9,391
6,378
9,974
9,499
Facilities Maintenance
Number of Buildings Maintained
12
14
16
19
19
Square Footage
111,642
127,589
135,091
166,591
166,591
Source: Various City Departments. Prior year
information for some functions is
not available.
115
TABLE 21
116
Fiscal Year
2011
2012
2013
2014
2015
4,950
2,643
3,054
2,869
3,087
168,000
168,000
168,000
180,000
180,000
26,205
19,434
19,894
19,067
36,138
762
666
800
776
595
13,231
20,881
19,335
15,077
12,306
1,575
1,665
1,960
1,823
2,040
1,657
1,799
2,046
1,759
2,167
110
74
108
110
99
616
429
332
252
698
142
168
132
125
150
536
714
729
735
980
7,443
7,545
8,391
8,840
9,286
4,801
4,766
5,451
5,713
6,118
85
79
116
87
84
4,141
2,888
3,344
2,354
3,798
3,985
4,118
4,687
3,781
3,691
118
123
127
82
135
244
180
281
218
136
18
14
24
16
22
237
234
258
301
275
354
325
444
458
478
666
816
735
437
455
241
307
288
244
209
1,802
1,463
1,326
1,218
1,304
257
291
362
309
357
313
149
231
222
213
300
312
301
316
296
414,074
410,312
404,691
395,998
394,766
254,934
256,349
254,633
253,237
259,413
13,767
16,035
12,581
15,048
13,825
28,589
30,475
31,658
30,759
31,138
439
271
168
235
369
76
52
38
45
45
16,763,239
16,131,415
15,500,413
15,497,071
14,757,134
45,927
44,196
42,466
42,458
40,431
11,000
9,290
9,483
10,089
8,385
12,234
12,557
12,757
13,324
13,570
5,725
5,517
5,905
5,467
5,135
10,907
10,988
11,456
11,578
11,413
19
19
19
19
21
166,591
166,591
166,591
166,591
234,202
116
CITY OF SCHERTZ, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Source: Various City Departments
117
Fiscal Year
Function
2006
2007
2008
2009
2010
Police
Stations
1
1
1
1
1
Patrol Units
34
33
33
38
40
Fire
Stations
2
2
2
2
2
Training Facility
1
1
1
-
-
Fire Vehicles
12
12
14
13
13
EMS
Ambulances
6
6
6
6
6
Marshal Service
Vehicles
-
-
-
5
7
Streets
Streeets, paved (miles)
102
107
122
124
125
Streets, unpaved (miles)
9
9
7
7
7
Parks and Recreation
Parks - Developed
7
7
7
11
12
Parks - Undeveloped
4
4
4
4
4
Playground
20
20
20
20
19
Swimming Pools
1
1
2
2
2
Baby Pools
1
1
2
2
2
Baseball/Softball Diamonds
12
12
12
12
12
Soccer Fields
-
-
-
12
12
Community Centers
1
1
2
2
4
Animal Control
Control Vehicle
2
3
3
3
3
Library
Facility
1
1
1
1
1
Volumes in Collection
52,818
56,282
60,650
64,400
71,929
Water
Number of Reservoirs
1
-
-
-
-
Number of Pump Stations
1
2
-
5
5
Water Mains (Miles)
171
177
182
188
190
Sewer
Sanitary Sewers (Miles)
54
59
71
78
78
Storm Sewers (Miles)
4
6
8
9
9
Facilities Maintenance
Vehicles
4
4
4
5
5
Generators
3
3
3
3
3
Source: Various City Departments
117
TABLE 22
Fiscal Year
2011 2012 2013 2014 2015
1
1
1
1
1
42
42
42
42
48
2
2
2
2
2
13
13
13
15
16
6
6
7
7
9
8
8
7
7
7
132
134
137
141
149
5
5
5
5
5
17
17
13
13
14
4
4
8
8
9
15
15
16
16
18
2
2
2
2
2
2
2
2
2
2
9
9
12
12
15
12
12
12
12
12
4
4
4
4
4
3
3
3
3
3
1
1
1
1
1
73,904
81,468
86,221
100,478
113,085
5
5
5
5
5
192
192
197
199
210
84
85
87
90
96
10
10
11
11
12
5
4
5
5
6
3
3
3
3
4
118
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COMPLIANCE SECTION
119
SHAREHOLDERS:
Nancy L. Vaughan, CPA
Deborah F. Fraser, CPA 4D
Phil S. Vaughan, CPA
Armstrong, Vaughan & Associates, P.C.
INDEPENDENT AUDITOR'S REPORT
Certified Public Accountants
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT A UDITING STANDARDS
To the City Council and management
City of Schertz
We have audited, in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information of City of Schertz as
of and for the year ended September 30, 2015, and the related notes to the financial statements, which
collectively comprise City of Schertz's basic financial statements, and have issued our report thereon dated
March 11, 2016.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Schertz's internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose
of expressing an opinion on the effectiveness of City of Schertz's internal control. Accordingly, we do not
express an opinion on the effectiveness of City of Schertz's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity's
financial statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be material weaknesses or significant deficiencies. Given these limitations,
during our audit we did not identify any deficiencies in internal control over financial reporting that we
consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
941 West Byrd Blvd., Suite 101 • Universal City, Texas 78148
Phone: 210- 658 -6229 • Fax: 2.10 -659 -7611 -Email: vaughan@avacpa.com . www.avacpa.com
120
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Schertz's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results
of our tests disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
We noted certain matters that we have reported to management of City of Schertz in a separate letter dated
March 11, 2016.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or
on compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity's internal control and compliance. Accordingly, this communication is
not suitable for any other purpose.
Armstrong, Vaughan & Associates, P.C.
March 11, 2016
121
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Agenda No. 3
CITY COUNCIL MEMORANDUM
City Council Meeting: March 22, 2016
Department: Parks and Recreation
Subject: Resolution 16 -R- 27 to Approve an
Agreement with Thos. S Byrne,
Ltd for Replacement of Windows
at the Recreation Center
BACKGROUND
GOAL
To replace the glass and glazing, including the existing aluminum curtain wall members, due
to the failure of the existing systems. The building was designed by the architectural firm of
Munoz and Associates, the City served as the General Contractor for the project which was
substantially complete in 2010.
EXISTING CONDITIONS AND STUDIES
The current building's exterior glass and curtainwall systems have experienced water
infiltration for a number of years as well as complete glazing units falling out of the
curtainwall system entirely. Additionally the current design of the windows in the
gymnasium are floor to ceiling height and represent an impact danger to citizens using this
area of the building.
The City engaged the architectural firm of OCO to investigate the exterior envelope systems
and provide a report outlining corrective actions required to correct the issues on a permanent
basis. OCO engaged the services of Raba Kistner to provide additional engineering and
investigative services on a more detailed basis. Raba Kistner met with the representative of
the curtainwall systems on or about September 18, 2012. As a result of that meeting it was
stated that it was not a materials failure but the result of improper installation of the various
systems. The curtainwall representative made the statement that some of the systems selected
were not the correct systems for use in some areas.
Subsequent to these reports the original design firm of Munoz and Associates was contacted
and advised of the results of the reports and asked to meet with the City to discuss moving
forward with the correct resolution of the exterior envelope issues.
Munoz and Associates agreed to participate in the resolution without additional cost to the
City and engaged the consulting firm of Zero /Six who specializes in exterior envelope issues
on or about July 2013. The report from Zero /Six was issued on or about September 10, 2013.
Following several meetings with all the parties it was decided that the repairs to the few
existing gazing panels would be more expensive and present the possibility of future failure
than replacing them in total.
Munoz and Associates prepared drawings and specifications as needed to competitive bid the
replacement of the existing glazing systems as well as the upper level fixed individual
window glazing units. The cost estimate for this work was $300,000.00 to $400,000.00 at the
time.
A Request for Competitive Sealed Proposals (RFCSP) was issued on or about April 18, 2014
with a response date of May 22, 2014. One proposal response was received with a bid
amount of $825,000.00
Based on the one bid received which exceeded the budget at the time, it was decided to reject
the one bid and to rebid the work at a future date.
With the start of construction on the Aquatic Facility it was decided to rebid the project based
on the thought that we might be able to capitalize on the use of similar materials and
therefore receive a better price given the quantity involved.
A Request for Proposals (RFP) was issued by the City on November 17, 2015 with a
response date of December 3, 2015.
One response was received and that was from Thos. S Byrne, Ltd in the amount of
$634,167.00.
Because this is an existing building with acknowledged issues it is recommended that a city -
controlled contingency amount to cover unknown and unanticipated conditions that may
arise be established to address this possibility. Should unforeseen conditions exceed this
contingency then Staff will return to advise what the issue is and get further direction.
The work is anticipated to take approximately four to five months to complete.
Community Benefit
The community will benefit having a recreation center that does not leak and has the
windows in the gymnasium redesigned to provide a safer environment for play.
Fiscal Impact
Funds for this Contract will be from the certificates of obligation issuance for city
infrastructure repair with an estimated debt service of $44,000. Any payments made on the
project before the debt is issued will be paid from fund balance with the intent the funds will
be replaced upon issuance.
RECOMMENDATION
Approval of Resolution 16 -R -27
ATTACHMENT(S)
Resolution No. 16 -R -27
AIA A101- 2007 Standard Form of Agreement between Owner and Contractor.
Executive summaries from Raba Kistner and Zero /Six.
RESOLUTION NO. 16 -R -27
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING THE APPROVAL OF AN
AGREEMENT WITH THOS. S BYRNE, LTD FOR REPLACEMENT OF
WINDOWS AND GLAZING SYSTEMS AT THE RECREATION CENTER
WHEREAS, the City staff of the City of Schertz (the "City ") has recommended that the
City enter into an Agreement with Thos. S Byrne, Ltd. as the General Contractor for the
replacement of the windows and glazing systems at the Recreation Center; and
WHEREAS, the City Council has determined that it is in the best interest of the City to
enter into an Agreement with Thomas S Byrne, Ltd and the Agreement attached hereto as
Exhibit A (the "Agreement ").
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
THAT:
Section 1. The City Council hereby authorizes the City Manager to execute and
deliver the Agreement with Thomas S Byrne, Ltd for the replacement of the windows and
glazing systems at the Recreation Center in substantially the form set forth on Exhibit A. The
total amount payable under this Agreement shall not exceed Six Hundred Thirty Four Thousand
One Hundred Sixty Seven Dollars ($634,167.00) plus a City controlled contingency of Twenty
Five Thousand Dollars ($25,000.00) for a maximum agreement amount of Six Hundred Fifty
Nine Thousand One Hundred Sixty Seven Dollars ($659,167.00).
Section 2. The funding for the project will come from a future issuance of certificate
of obligation bonds in the amount of ($659,167.00). Any funds expended before that issuance
will be paid from fund balance. The fund balance will be reimbursed any amount expended once
the debt is issued.
Section 3. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a
part of the judgment and findings of the City Council.
Section 4. All resolutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved herein.
Section 5. This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Section 6. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the application
of such provision to other persons and circumstances shall nevertheless be valid, and the City
Council hereby declares that this Resolution would have been enacted without such invalid
provision.
Section 7. It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Resolution, was
given, all as required by Chapter 551, Texas Government Code, as amended.
Section 8. This Resolution shall be in force and effect from and after its final
passage, and it is so resolved.
PASSED AND ADOPTED, this 22nd day of March, 2016.
CITY OF SCHERTZ, TEXAS
Michael R Carpenter, Mayor
ATTEST:
Brenda Dennis, City Secretary
(CITY SEAL)
50234811.1
EXHIBIT A
AIA A101 STANDARD FORM OF AGREEMENT BETWEEN OWNER AND
CONTRACTOR
FOR THOS. S BYRNE, LTD
#AIA Document A101"' -2007
Standard Form of Agreement Between Owner and Contractor where the bast's
of payment is a Stipulated Sum
AGREEMENT made as of the day of
(In words, indicate day, month and year.)
BETWEEN the Ownet
(Name, legal status, address and other information)
City of Schertz
1400 Schertz Parkway
Schertz, Texas 78154
and the Contractor
Name, legal status, address and other information)
Thos. S. Byrne, Ltd. 14220 Northbrook Dr. Suite 400
San _Antonio, Texas 78232
Phone: 210.402 3335
tbattle@tsbyrne.com
for the following Project-
(Name, location and detailed description)
Replacement of Extetioi Glazed Aluminum Assemblies
City of Schertz Recreation Center
621 'Westchester Drive
Schertz, Texas 78154
The Architect
(Name, legal status, address and other information)
Munoz & Company, Inc 1017'N. Main Avenue
San Antonio, Texas 78212
The Owner and Contractot agree as follows.
in the year 2016
ADDITIONS AND DELETIONS:
The author of this document has
added information needed for its
completion. The author may also
have revised the text of the original
AIA standard form. An Additions and
Deletions Report that notes added
information as well as revisions to
the standard form text is available
from the author and should be
reviewed. A vertical line in the left
margin of this document indicates
where the author has added
necessary information and where
the author has added to or deleted
from the original AIA text.
This document has important legal
consequences. Consultation with an
attorney is encouraged with respect
to its completion or modification.
AIA Document A201 r"" -2007,
General Conditions of the Contract
for Construction, is adopted in this
document by reference. Do not use
with other general conditions unless
this document is modified.
loft AIA Document A1101" — 2007. CopyrightO 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by The American
Institute of Architects. All rights reserved. WARNING: This AM* Document Is protected by U.S. Copyright Law and International Treaties. Unauthorized
reproduction or distribution of this AIA® Document, or any portion of It, may result in severe civil and criminal penalties, and will be prosecuted to the
t maximum extent possible under the law. This document was produced by AIA software at 14:48:12 on 03/01/2016 under Order No. 8655959288 which
expires on 0611412016, and Is not for resale.
User Notes: (3BRADA2D)
TABLE OF ARTICLES
1 THE CONTRACT DOCUMENTS
2 THE WORK OF THIS CONTRACT
3 DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION
4 CONTRACT SUM
5 PAYMENTS
a DISPUTE RESOLUTION
7 TERMINATION OR SUSPENSION
8 MISCELLANEOUS PROVISIONS
9 ENUMERATION OF CONTRACT DOCUMENTS
10 INSURANCE AND BONDS
ARTICLE I THE CONTRACT DOCUMENTS
The Contract Documents consist of this Agreement, Conditions of the Contract (General, Supplementary and other
Conditions), Drawings, Specifications, Addenda issued prior to execution of this Agreement, other documents listed
in this Agreement and Modifications issued after execution of this Agreement, all of which form the Contract, and
are as fully a part of the Conti act as if attached to this Agreement or repeated herein, The Contract represents the
entire and integrated agi eement between the parties hereto and supersedes prior negotiations, representations or
agreements, either written or oral. An enumeration of the Contract Documents, other than a Modification, appears in
.Article 9
ARTICLE 2 THE WORK OF THIS CONTRACT
'Unless otherwise provided in these Contract Documents, the Contractor shall be responsible for performing or
causing to be performed all Work including labor and materials, necessary to build, construct, erect and equip in
accordance with the Contract Documents except to the extent specifically indicated in the Contract Documents to be
the responsibility of others.
ARTICLE 3 DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION
§ 3.1 The date of commencement of the Work shall be stated in a Notice to Proceed issued by the Owner.
(Paragraph Deleted)
If, prior to the commencement of the Work, the Owner requires time to file mortgages and other security interests,
the Owner's time requirement shall be as follows:
NiA
§ 3.2 The Contract Time shall be measured from the date of commencement.
§ 3.3 The Contractor shall achieve Substantial Completion of the entire Work not later than one hundred nineteen
119 ) days from the date of commencement subject to adjustments of this Contract Time as provided in the Contract
Documents
§ 3.4 In all matters of this Agreement, Time is of the essence in all phases of the Work and performance of
obligations owed by the Contractor to the Owner as stated in this Agreement and the Contract Documents. It is
specifically understood and agreed by and between Owner and Contractor that time is of the essence in the
Init. ALA Document A101 TM —2007. Copyright ®1915, 1918, 1925, 1937, 1951, 1958, 1981, 1963, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by The American
Institute of Architects. All rights reserved. WARNING: This ALA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized
reproduction or distribution of this AIA® Document, or any portion of Lt, may result In severe civil and criminal penalties, and will be prosecuted to the
p maximum extent possible under the law. This document was produced by AIA software at 14:48:12 an 03/01/2016 under Order No. 8855959288 which
expires on 0811412016, and is not for resale.
User Notes: (MgADAM)
substantial completion of the Work; and that failure to substantially complete the Work within the designated period,
or as it may be extended, shall be construed as a breach of this ,Agreement.
§ 3.4.1 The Contractor acknowledges and recognizes that the Owner is entitled to full and beneficial occupancy and
use of the completed work following expiration of the Contract Time. The Contractor further acknowledges and
agrees that, if the Contractor fails to substantially complete, or cause the Substantial Completion of any portion of
the Work within the Contract time, the Owner will sustain actual damages as a result of such failure. The exact
amount of such damages will be difficult to ascertain. Therefore, the Owner and Contractor agree that, if the
Contractor shall neglect, fail, or refuse to achieve substantial completion of the Work by the Substantial Completion
date, subject to propel extension granted by the Owner, then the Contractor agrees to pay the Owner the sum of
One thousand two hundred dollars ($1,200.00)
Cf`able Deleted)
foi each day in which such Work is not completed, not as penalty, but as liquidated damages, for the damages
("Liquidated Damages ") that would be suffered by Owner as a result of delay for each and every calendar day that
the Contractor shall have failed to have completed the Work as required herein. The Liquidated Damages shall be in
lieu of any and all other damages which may be incurred by Owner as a result of the failure of Contractor to
complete within the Contract time.
§ 3.5 The Contractoi shall be entitled to an extension of the Contract Time for delays or disruptions due to unusually
severe weather in excess of that normally experienced at the job site only as determined from climatological data set
forth in this subsection_ The Contractor shall bear the entire economic risk of anticipated weather delays as listed in
the table below Rainy days shall not be considered an unusually severe weather condition, for which an extension
of the Contract Time will be granted, unless the actual cumulative number of rainy days within the month exceed the
histoncal average cumulative number of rainy days for said month, provided that the rainfall prevented the
execution of major items of work on normal working days. If considered an unusually severe weather condition, an
extension of the Contact Time will only be granted for the number of rainy days in excess of the average number of
rainy days for that month.
A rainy day is defined as a day when rainfall exceeds one -tenth (.1) inch during a twenty -four (24) hour period The
aretage historical numbet of rainy days per calendar month is as follows, based upon regional weather data from
the National Weather Service and /or NOAA:
A
The number of rainy days shown in the Rainfall Table for the first and last months of this Agreement will be
prorated in determining the total number of rainy days expected during the period of this Agreement. An extension
of the Contract Time may also be granted for any day following a rainy day during which muddy conditions exist
and prevent performance of major items of work conducted on normal working days. Such muddy conditions are
subject to confirmation by the Owner.
Requests for an extenvon of time pursuant to this subsection shall be promptly submitted to the Owner. Failure to
timely submit a complete notice of claim for delays and extension of time far completion due to abnormal or adverse
weather conditions or rainy days pursuant to this subsection shall result in the denial of a request for extra time for
performance under the Contract Documents.
§ 3.6 FINAL COMPLETION
§ 3.6.1 Ttmel- final completion is an essential condition of this contract. Contractor agrees to achieve final
completion of the Work within 30 days of the designated or extended substantial completion date.
��� AIA Document A701 TM —2007. Copyright 0 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by The American
Institute of Architects. All rights reserved. WARNING: This AIAO Document Is protected by U.S. Copyright Law and International Treaties. Unauthorized
reproduction or distribution of this AIA® Document, or any portion of It, may result In severe civil and criminal penalties, and will be prosecuted to the
maximum extent possible under the law. This document was produced by AIA software at 14:48:12 on 0310V201 6 under Order No. 8855959286 which
expires on 0611412016, and is not for resale.
User Notes: (3BWA2D)
§ 3.6.2 Final Completion means actual completion of the Work, including any punch list items, extras or Change
Orders reasonably required or contemplated under the Contract Documents other than warranty work that may be
required pursuant to Section 3.5 of AIA Document A201 -2007 as amended.
ARTICLE 4 CONTRACT SUM
§ 4.1 The Owner shall pay the Contractor the Contract Sum in current funds for the Contractor's performance of the
Contract. The Contract Sum shall be six hundred thirty-four thousand one hundred sixty -seven dollars ($
634,167.00 ), subject to additions and deductions as provided in the Contract Documents.
§ 42 The Contract Sum is based upon the following alternates, if any, which are described in the Contract
Documents and are hereby accepted by the Owner:
(State the numbers or other identification of accepted alternates. If the bidding or proposal documents permit the
Owner to accept other alternates subsequent to the execution of this Agreement, attach a schedule ofsuch other
alternates showing the amount for each and the date when that amount expires)
None
§ 4.3 Unit prices, if any:
(Identt jv and state the unit price; state quantity limitations, if any, to which the unit price will be applicable)
Item
Units and Limitations Price Per Unit ($0.00)
§ 4.4 Allowances included in the Contract Sum, if any:
(Identy� allowance and state exclusions, if arty, from the allowance price)
Item
Price
ARTICLE 5 PAYMENTS
§ 5.1 PROGRESS PAYMENTS
§ 5.1.1 Based upon Applications for Payment submitted to the Architect by the Contractor and Certificates for
Payment issued by the Architect, the Owner shall make progress payments on account of the Contract Sum to the
Contractor as provided below and elsewhere in the Contract Documents.
§ 5.1 .2 The period covered by each Application for Payment shall be one calendar month ending on the last day of
the month
§ 5.1.3 The Owner will pay an approved Application for Payment within thirty (30) days after the date such
approved Application for Payment is received by the Owner from the Architect. Not withstanding the foregoing the
Owner shall not be required to pay any disputed amounts that the Owner believes were erroneously approved by the
Architect. Past due payments and any disputed amounts shall bear interest in accordance with the Texas Prompt
Payment .Act.
(Paragraph Deleted)
§ 5.1.4 Each Application for Payment shall be based on the most recent schedule of values submitted by the
Contractor in accordance with the Contract Documents. The schedule of values shall allocate the entire Contract
Sum among the various portions of the Work. The schedule of values shall be prepared in such form and supported
by such data to substantiate its accuracy as the Architect and Owner may require. This schedule, unless objected to
by the Architect or Owner, shall be used as a basis for reviewing the Contractor's Applications for Payment.
§ 5.1.5 Applications for Payment shall show the percentage of completion of each portion of the Work as of the end
of the period covered by the Application for Payment.
§ 5.1.6 Subject to other provisions of the Contract Documents, the amount of each progress payment shall be
computed as follows:
Init. AIA Document A101 TM — 2007. Copyright ®1915, 1918, 1925, 1937, 1951, 1956, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by The American
Institute or Architects. All rights reserved. WARNING: This AIAe Document Is protected by U.S. Copyright Law and International Treaties. Unauthorized
reproduction or distribution of this AIAe Document, or any portion of It may result in severe civil and criminal penalties, and will be prosecuted to the
maximum extent possible under the law. This document was produced by AIA software at 14:48:12 on 03/01/2016 under Order No. 8855959288 which
expires on 06114/2016, and Is not for resale.
User Notes: (3139ADA2D)
.1 Take that portion of the Contract Sum properly allocable to completed Work as determined by
multiplying the percentage completion of each portion of the Work by the share of the Contract Sum
allocated to that portion of the Work in the schedule of values, less retainage of five percent ( 5 %).
Pending final determination of cost to the Owner of changes in the Work, amounts not in dispute
shall be included as provided in Section 7.3.9 of AIA Document A201 TK-2007, General Conditions
of the Contract for Construction;
.2 Add that portion of the Contract Sum properly allocable to materials and equipment delivered and
suitably stored at the site for subsequent incorporation in the completed construction (or, if approved
in advance by the Owner, suitably stored off the site at a location agreed upon in writing), less
retainage of five percent ( 5 %);
.3 Subtract the aggregate of previous payments made by the Owner; and
.4 Subtract amounts, if any, for which the Architect has withheld or nullified a Certificate for Payment as
provided in Section 9.6 of AIA Document A201 -2007, as amended.
§ 5.1.7 The progress payment amount determined in accordance with Section 5.1.6 shall be further modified under
the following circumstances
.1 Add, upon Substantial Completion of the Work, a sum sufficient to increase the total payments to the
full amount of the Contract Sum, less such amounts as the Architect shall determine for incomplete
Work, retainage applicable to such work and unsettled claims; and
(Paragraph Deleted)
.2 Add, if final completion of the Work is thereafter materially delayed through no fault of the Contractor,
any additional amounts payable in accordance with Section 9.10.3 of AIA Document A201 -2007, as
amended.
§ 5.1.8 Reduction or limitation of retainage, if any, shall be as follows:
(If it is intended, prior to Substantial Completion of the entire Work, to reduce or limit the retainage resultingfrom
the percentages inserted in Sections 5.1.61 and 5.1.62 above, and this is not explained elsewhere in the Contract
Documents, insert here provisions for such reduction or limitation.)
None
§ 5.1.9 Lmcept mith the Owner's prior approval, the Contractor shall not make advance payments to suppliers for
materials of equipment which have not been delivered and stored at the site.
§ 5.2 FINAL PAYMENT
§ 5.2.1 Final payment, constituting the entire unpaid balance of the Contract Sum, shall be made by the Owner to the
Contractor when
A the Contractor has fully performed the Contract except for the Contractor's responsibility to correct
Work as provided in Section I2.2.2 of AIA Document A201-20-07, and to satisfy other requirements,
if any.. which extend beyond final payment;
.2 the Contractor has submitted a final Application for Payment; and
.3 a final Certificate for Payment has been issued by the Architect.
§ 5.2.2 The Owner's final payment to the Contractor shall be made no later than 30 days after the issuance of the
Architect's final Certificate for Payment, or as follows:
§ 5.2,3 The Contract shall not have been fully performed until all work required by the Construction Documents
including but not limited to the following have been performed:
.1 provision of record or as -built drawings executed or complete in both ".dwg" and ".tiff'
formats;
.2 provision of executed or complete certificates of documents evidencing warranties and owner -
operators manuals;
.3 provision of all documents evidencing required testing, inspection, verification and other
engineering or consulting services required under the construction contract;
.4 insuring agreements and bonds covering all periods of construction and any subsequent
periods required under the contract.
iRh. AIA Document A101 TM — 2007. Copyright ®1915, 1918, 1925, 1837, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1887, 1991, 1997 and 2007 by The American
Instilute of Architects. All rights reserved. WARNING: This AIA° Document Is protected by U.S. Copyright Law and International Treaties. Unauthorized
reproduction or distribution of this AIAO Document, or any portion of It, may result in severe civil and criminal penalties, and will be prosecuted to the
+ maximum extent passible under the law. This document was produced by AIA software at 14:48:12 on 03/01/2016 under Order No. 8655959288 which
expires on 0611412016, and is not for resale.
User Notes: (3B9ADA2D)
ARTICLE 6 DISPUTE RESOLUTION
§ 6.1 INITIAL DECISION MAKER
Me Architect will serve as Initial Decision Maker pursuant to Section 15.2 of AIA Document A201 -2007, as
amended, for CIaims arising from or relating to
the Contractor's services.
§ 6.2 BINDING DISPUTE RESOLUTION
For any Claim subject to, but not resolved by, mediation pursuant to Section 15.3 of AIA Document A201 2007, the
method of binding dispute resolution shall be as follows:
(Paragraph Deleted)
[ ] -krbitiation pursuant to Section 15.4 of AIA Document A201 -2007
[ X ] Litigation in a court of competent jurisdiction located in Guadalupe County, Texas.
[ ] Other (SpeCl&)
ARTICLE 7 TERMINATION OR SUSPENSION
§ 7.1 The Contract may be terminated by the Owner or the Contractor as provided in Article 14 of AIA Document
A201-2007. as amended.
§ 7.2 The Work may be suspended by the Owner as provided in Article 14 of AIA Document A201 -2007, as
amended.
ARTICLE 8 MISCELLANEOUS PROVISIONS
§ 8.1 Where reference is made in this Agreement to a provision of AIA Document A201 -2007 or another Contract
Document, the reference refers to that provision as amended or supplemented by other provisions of the Contract
Documents.
§ 8.2 Timeliness and interest due on payments to the Contractor are subject to and controlled by Texas
Government Code Chapter 2251.
(Paragraph Deleted)
§ 8.3 The Owner's representative
(Name, address and other irformation)
Phil Gaudreau
Jackson A &E Associates. Inc.
8300 White Stallion Trail
McKinney, Texas 75070
§ 8.4 The Contractor's representative:
(Name. address and other information)
Gary Sanchez — Senior Project Manager
rhos S. Byrne, Ltd.
14220 Northbrook Dr., Suite 400
San Antonio, Texas 78232
Phone:
Cell:
Email:
Ink AIA Document A101 TM —2007. Copyright ®1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by The American
Institute of Architects. All rights reserved. WARNING: This AIA® Document Is protected by U.S. Copyright Law and International Treaties. Unauthorized
reproduction or distribution of this AIAe Document, or any portion of it, may result In severe civil and criminal penalties, and will be prosecuted to the
t maximum extent possible under the law. This document was produced by AIA software at 14:48:12 on 03101/2016 under Order No. 8655959288 which
expires on 06114/2016, and is not for resale.
User Notes: (3B9ADA2D)
§ 8.5 The Contractor's representative may not be changed without written consent of the Owner, which shall not be
unreasonably withheld
§ 8.6 Terms in this Agreement shall have the same meaning as those in A201 -2007.
§ 8.7 Governing Law
The Contract shall be governed by the law of the State of Texas.
§ 8.8 Owner's Occupancy Requirements
Owner will occupy the premises during the entire construction period. Contractor shall cooperate with Owner during
construction operations to minimize conflicts and facilitate Owner usage. Contractor shall perform the Work so as
not to interfere with Owner's day -to -day operations. Contractor shall provide not less than 72 hours notice to Owner
of acti-, sties that will affect Owner's operations.
Conti actor is to coordinate its work with the Owner's occupied spaces to maintain access and existing exits for
occupants. Contractor shall construct & maintain suitable barriers to permit the safe egress from the existing
building during all phases of construction. Contractor is to limit and contain construction activities to minimize
dust disruption and safety hazards. Protection of occupants and operations is a primary concern.
Contractor shall obtain state and national criminal history background searches on all employees and subcontractors
who may have contact with children, or will be working in the children's area. Contractor shall obtain all required
criminal history record information, through the Schertz Police Department, regarding its employees and
subcontractors. If Contractor receives information that an individual has a disqualifying conviction, Contractor will
immediately remove the individual from contract duties and notify the Owner in writing within three (3) business
days Upon request, Contractoi will make available for the Owner's inspection the criminal history record
information of any individual. If the Owner objects to the assignment of an individual on the basis of the
individual's criminal history record information, Contractor agrees to immediately discontinue using that individual
to provide services for the Owner.
Contractor is responsible for (1) progress cleaning of its own areas on a daily basis; (2) secure lockup of its own
tools, materials, and equipment. (3) restoration of Owner's facilities used as temporary facilities or access to the site
or temporary facilities, or any existing facilities damaged by Contractor; and (4) protection of existing Owner
equipment that wilt remain in the work areas during construction. Setup, protection and cleanup will be required to
be performed daily during the off peak hours so that the spaces will function as occupied spaces without obstruction
during the day
(Paragraph Deleted)
The Contractor shall take proper measures to protect all property within all construction areas, and adjacent or
adjoining property which might be damaged by any process of construction; and, in case of any damage, Contractor
shall restore at its own expense the damaged property to a condition equal to or better than that existing before such
injury or damage was done, or Contractor shall make good such injury or damage in a manner acceptable to the
Owner.
The Contractor shall protect the public and Owner fully by taking reasonable precaution to safeguard persons from
death or bodily injury and to safeguard property of any nature whatsoever from damage. Where any dangerous
condition or nuisance exists in and around construction sites, equipment and supply storage areas and other areas in
any way connected with the performance of this Contract, the Contractor shall provide and maintain reasonable
warning of such danger or nuisance. The Contractor shall not create excavation, obstructions, or any dangerous
condttiort or nuisance of any nature whatsoever in connection with the performance of this Contract unless necessary
to its performance, and in that event the Contractor shall provide and maintain at all times reasonable means of
warning of any danger or nuisance created. The duties of the Contractor in this Paragraph shall be nondelegable, and
the Contractor's compliance with the specific recommendations and requirements of the City of Schertz, as to the
means of warning shall not excuse the Contractor from the faithful performance of these duties should such
recommendations and requirements not be adequate or reasonable under the circumstances.
AIA Document A101TM —2007. Copyright ®1915, 1918, 1925, 1937, 1951, 1956, 1961, 1963, 1967, 1974, 1977, 1967, 1991, 1997 and 2007 by The American
Init. Institute ofArcrReets. All rights reserved. WARNING: This AIA® Document Is protected by U.S. Copyright Law and International Treaties. Unauthorized 7
reproduction or distribution of this AIA® Document, or any portion of it, may result In severe civil and criminal penalties, and will be prosecuted to the
j maximum extant possible under the law. This document was produced by AIA software at 14:46:12 on 0310112016 under Order No. 6655959266 which
expires on 06/1412016. and Is not for resale.
User Notes: (MADAM)
ARTICLE 9 ENUMERATION OF CONTRACT DOCUMENTS
§ 9.1 The Contract Documents, except for Modifications issued after execution of this Agreement, are enumerated in
the sections below.
§ 9.1.1 The Agreement is this executed AIA Document A10 2007, Standard Form of Agreement Between Owner
and Contractor. Exhibit A to the Agreement is the Insurance Rider.
§ 9.1.2 The General Conditions are AIA Document A201 -2007, General Conditions of the Contract for
Construction.
§ 9.1.3 The Supplementary and other Conditions of the Contract:
Document Tale Date Pages
§ 9.1.4 The Specifications:
(Either list the Specifications here or refer to an exhibit attached to this Agreement.)
Title of Specifications exhibit- Attachment A101 -1: Specifications' Table of Contents
§ 9.1.5 The Drawings:
(Either list the Drawings here or refer to an exhibit attached to this Agreement.)
Title of Drawings exhibit: Attachment A101 -2: Index of Drawings
§ 9.1.6 The Addenda, if any
Number Date Pages
Portions of Addenda relating to bidding requirements are not part of the Contract Documents unless the bidding
requirements are also enumerated in this Article 9.
(Paragraphs Deleted)
ARTICLE 10 INSURANCE AND BONDS
The Contractor shall purchase and maintain insurance and provide bonds as set forth in Article 11 of AIA Document
A201 -2007.
(State bonding requirements, if arty, and limits of liability far insurance required in Article 11 ofAL1 Document
_1201- 2007.)
Type of Insurance or bond Limit of liability or bond amount ($0.00)
See Exhibit A
Ihis Agreement entered into as of the day and year first written above.
IoM. AIA Document A701 TM —2007. Copyright 01915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by The American
Instldrte or Architects. All rights reserved. WARNING: This AIAe Document is protected by U.S. Copyright Lair and International Treattes. Unauthorized
reproduction or distribution of this AIAe Document, or any portion of It, may result In severe civil and criminal penalties, and will be prosecuted to the
t maximum extent possible under the law. This document was produced by AIA software at 14:48:12 on 03101/2016 under Order No. 8655959288 which
expires on 0611412016, and is not for resale.
User Notes: (31219ADA21))
OWNER (Signature)
John C. Kessel, City Manager
(Printed name and title)
(Printed name and title)
!nit AIA Document A701 TM —2007. Copyright 0 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by The American
Institute of Architects. All rights reserved. WARNING: This AIA° Document is protected by U.S. Copyright Law and International Treaties. Unauthorized
reproduction or distribution of this AIA° Document, or any portion of It, may result In severe civil and criminal penalties, and will be prosecuted to the
t maximum extant possible under the law. This document was produced by AIA software at 14:48:12 on 03101/2016 under Order No. 8855959288 which
expires on 06114/2016, and Is not for resale.
User Notes: (3139ADA21))
Certification of Document's Authenticity
AIA'm Document D4017" — 2003
I, , hereby certify, to the best of my knowledge, information and belief, that I created the attached final document
simultaneously with its associated Additions and Deletions Report and this certification at 14:48:12 on 03/01/2016
under Order No. 8655959288 from AIA Contract Documents software and that in preparing the attached final
document I made no changes to the original text of AIA® Document A1011- 2007, Standard Form of Agreement
Between Owner and ere the basis of payment is a Stipulated Sum, as published by the AIA in its
Software, other an�h�tho ditions anceletions shown in the associated Additions and Deletions Report.
President - South Texas
(Title)
03 -02 -2016
(Dated)
AIA Document D401 TM — 2003. Copyright ®1992 and 2003 by The American Institute of Architects. All rights reserved. WARNING: This AIA® Document Is
protected by U.3. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIAe Document, or any portion of it
may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by
AIA software at 14:48:12 on 09!0112016 under Order No. 86559592BB which expires on D5/1412016, and is not for resale.
User Notes: {3139ADA21))
RE: Visual Assessment of Existing Window Internal Joinery and Components
City of Schertz
Schertz Family YMCA
621 Westchester
Schertz, Texas 78154
Dear Mr. Oppelt:
Raba Kistner Facilities, Inc. (RKFI) is pleased to submit a report of our visual assessment of the exterior
window components of the YMCA in Schertz, Texas for OCO Architects (Client). This study was
performed in accordance with RKFI Proposal PSR12- 070 -00 dated June 12, 2012 and based on RKFI's
recommendations as outlined in our previous report dated August 21, 2012. The purpose of this study
was to determine the apparent condition of the existing window internal joinery and components with
David Ham, regional manufacturer representative of YKK Arch Products and Robert Shultz, glazing
contractor of Architectural Division 8. Additionally, RKFI will identify deficiencies and make a
determination as to the extent of required repairs.
Introduction
RKFI has completed our visual assessment of the existing window internal joinery and components for the
City of Schertz Family YMCA located in Schertz, Texas. This report briefly describes our findings along
with opinions for our Client's consideration in determining pertinent repair measures.
Background Information
On Tuesday, September 18, 2012, Alex D. Gamble, Designer, Associate AIA and Troy R. Harrell, Building
Envelope Consultant, both of RKFI, met with David Ham and Robert Shultz on site to dismantle various in-
situ window systems to observe existing conditions at the internal joinery of suspected deficiencies
within the system related to water infiltration into the building interior. The subject facility's existing
exterior windows and clerestory windows were observed during this assessment. Existing metal face caps
were removed at multiple locations and at multiple windows to field verify the existing internal joinery and
window components as well as workmanship of the installation. Existing sealant joints where the metal
framing systems intersect the masonry were removed to further verify jamb conditions. Prior to site
departure; the existing window systems and the required sealants were re- installed to safeguard against
any potential water intrusion caused by this assessment.
'San Antonio • Austin • Brownsville • Corpus Christi • Dallas • El Paso • Houston • McAllen • New Braunfels • Mexico • Salt Lake City
N: \Active Projects \San Antonio \ASR12 - 041 -00 Schertz Family YMCA \Reporting \Report 2 \ASR12- 041-00 Report 2.doc
R A B A
4 KISTNER
FACILITIES
Project No. ASR12- 041 -00
Raba Kistner
September 25, 2012
Facilities, Inc.
12821 W. Golden Lane
San Antonio, TX 78249
P.O. Box 690287
San Antonio, TX 78269 -0287
Mr. Mark Oppelt, AIA, LEED AP, REFP
www.rkci.com
Principal
P 210:: 699 :: 9090
OCO Architects
F 210 :: 699 :: 6426
114 East Cevallos Street
TBPE Firm F -3257
San Antonio, Texas 78204
RE: Visual Assessment of Existing Window Internal Joinery and Components
City of Schertz
Schertz Family YMCA
621 Westchester
Schertz, Texas 78154
Dear Mr. Oppelt:
Raba Kistner Facilities, Inc. (RKFI) is pleased to submit a report of our visual assessment of the exterior
window components of the YMCA in Schertz, Texas for OCO Architects (Client). This study was
performed in accordance with RKFI Proposal PSR12- 070 -00 dated June 12, 2012 and based on RKFI's
recommendations as outlined in our previous report dated August 21, 2012. The purpose of this study
was to determine the apparent condition of the existing window internal joinery and components with
David Ham, regional manufacturer representative of YKK Arch Products and Robert Shultz, glazing
contractor of Architectural Division 8. Additionally, RKFI will identify deficiencies and make a
determination as to the extent of required repairs.
Introduction
RKFI has completed our visual assessment of the existing window internal joinery and components for the
City of Schertz Family YMCA located in Schertz, Texas. This report briefly describes our findings along
with opinions for our Client's consideration in determining pertinent repair measures.
Background Information
On Tuesday, September 18, 2012, Alex D. Gamble, Designer, Associate AIA and Troy R. Harrell, Building
Envelope Consultant, both of RKFI, met with David Ham and Robert Shultz on site to dismantle various in-
situ window systems to observe existing conditions at the internal joinery of suspected deficiencies
within the system related to water infiltration into the building interior. The subject facility's existing
exterior windows and clerestory windows were observed during this assessment. Existing metal face caps
were removed at multiple locations and at multiple windows to field verify the existing internal joinery and
window components as well as workmanship of the installation. Existing sealant joints where the metal
framing systems intersect the masonry were removed to further verify jamb conditions. Prior to site
departure; the existing window systems and the required sealants were re- installed to safeguard against
any potential water intrusion caused by this assessment.
'San Antonio • Austin • Brownsville • Corpus Christi • Dallas • El Paso • Houston • McAllen • New Braunfels • Mexico • Salt Lake City
N: \Active Projects \San Antonio \ASR12 - 041 -00 Schertz Family YMCA \Reporting \Report 2 \ASR12- 041-00 Report 2.doc
Project No. ASR12- 041 -00
September 25, 2012
Field Observations
2
This assessment was conducted by means of reviewing the construction documents dated October 2010,
specified window installation manuals from YKK Arch Products "YES 600" and "YCW 752" series and the
technical knowledge and standard industry practices with metal window systems of both David Ham and
Robert Shultz. The following observations were made:
Gymnasium, Y -Land Room, Child Watch Toddler Room, Child Watch Infant Room, Aerobics Room, Spin
Room and Clerestory Exterior Windows - "YES 600" System; this is a thermally broken front loaded
storefront system for 1 inch insulated glass. The thermal break is achieved by employing a unique nylon
clip that locks the exterior and interior framing members together per manufacture's literature.
• Window framing system (vertical and horizontal members) inadequately sized for "rough"
openings in the existing tilt -up concrete panels. It appears the existing window system is
oversized.
• Window glazing inadequately sized for "rough" openings. It appears the window system is
oversized.
• Missing and /or inadequately installed metal sill flashing.
• Missing metal end dams.
• Missing water deflectors.
• Missing and /or broken glazing clips (it appears after previous attempts of re- installation of
metal face caps have caused fatigue in glazing clips which have led to failures).
• Missing weep holes in metal face caps (as required by manufacture; two (2) per lite
panel).
• Observed inadequate rubber gasket lengths.
• Missing and /or omitted setting blocks.
• Missing rubber joint plugs.
• Missing rubber end dams.
• Missing and /or inadequate sealant applications and improper sequencing of required
sealant at multiple locations.
• Missing shims at jambs of window framing systems.
• Observed previous repair attempts by means of sealant repair throughout the window
system exterior and interior (not a repair recommendation recognized by YKK Arch
Products)
• Clerestory windows; the last four (4) windows on the far right facing the east elevation
were observed to have not been project specified windows.
• Concluded water infiltration deficiencies were not window system specific but rather
meager installation overall.
The existing window systems currently in place as noted above are in need of full replacement with the
appropriate window system. As recommended by Mr. Ham; the specified window systems (YES 600) in
place are not the appropriate systems given the design technique (windows projected outwards from the
face of building) and inadequate sizing related to the existing "rough" openings. With Mr. Ham's
R A B A K I STN ER
Project No. ASR12- 041 -00 3
September 25, 2012
recommendation and his familiarity with these types of window systems, the window systems in place are
neither repairable nor salvageable. After extensive evaluation and discussion with Mr. Ham, Mr. Schultz,
and RKFI building consultants, it is RKFI's opinion that the above noted areas be fully replaced with the
"YCW 752" window system or with an approved window system as selected by the Design /Owner team.
Cardio Fitness Area — "YCW 752" System; is an outside glazed pressure wall system that offers a minimal
sight line of the framing members. System is ideal to provide improved thermal performance to conserve
energy and lower operating costs per manufacture's literature.
• Missing and /or inadequately installed perimeter anchors at sill.
• Missing perimeter pressure plates at jambs.
• Missing metal end dams.
• Missing weep holes at pressure plates.
• Observed inadequate rubber gasket lengths.
• Observed inadequate and /or omitted setting blocks.
• Missing rubber joint plugs.
• Missing rubber E -slot plugs.
• Missing rubber end dams.
• Missing and /or inadequate sealant applications and improper sequencing of required
sealant at multiple locations.
• Missing shims at jambs of window framing systems.
• Concluded water infiltration deficiencies were not window system specific but rather
meager installation overall.
The existing window systems currently in place as noted above in the Cardio Fitness Area are in need
repair with the appropriate window internal components and proper installation techniques employed in
the field. As recommended by Mr. Ham; the specified window systems (YCW 752) in place are appropriate
systems given that the repair techniques are followed per manufacture's recommendations. With Mr.
Ham's recommendation and his familiarity with these types of window systems, the window systems in
place are repairable with the specified "YCW 752" internal components which are an active product line
with YKK Arch Products today.
Recommendations
On the basis of our visual observations, extensive evaluation of the existing conditions and our
understanding of building construction and our previous experience with similar projects, we provide
the following opinions for the Client to consider:
• Water infiltration deficiencies observed do not appear window system specific but
rather inadequate installation techniques employed at the time of installations.
• Windows installed at the Gymnasium, Y -Land Room, Child Watch Toddler Room, Child
Watch Infant Room, Aerobics Room and Spin Room should be fully replaced and re-
RABAKI STN ER
Project No. ASR12- 041 -00
September 25, 2012
4
installed with the appropriate window system if not provided by YKK Arch Products but
with an approved and equal system from another window manufacturer.
• Windows installed at the Cardio Fitness Area should be repaired employing the
appropriate window internal components and installation techniques as recommended by
YKK Arch Products.
• With the aid of the Design Team and a pre - selected window manufacturer; with the
selection of a competent window glazing contractor for replacement and repair
installations are needed.
• With the remaining funds from the approved window water testing Phase Ili RKFI
recommends allocating these funds to perform field water testing during the
replacement and repair measures. RKFI will field verify the integrity and quality of the
replacement /repair techniques employed. Should in the field installations not meet the
design parameters; RKFI with the selected window manufacturer and glazing contractor
will investigate the non conforming system(s), identify and assist with the corrective
measures to mitigate any installation delays,
• Once the recommendations and /or agreement with the Client have been approved; RKFI
will proceed with the following Phases III and IV as outlined in Proposal PSR12- 070 -00
dated June 12, 2012.
Limitations and Assumptions
The information provided in this document is directed to the Client, and may not contain information
For others and /or for other uses. Although our observations were made with normal care and diligence,
it is likely not all conditions were observed. If information described in this document, provided by
others, is incorrect or if additional information becomes available, RKFI may need to revise this
document.
We appreciate the opportunity to be of service to you on this project. Should you have any questions
about the information presented in this report, or if we may be of additional assistance, please call.
Very truly yours,
RABA i(ISTNER FACILITIES, INC.
David A. White, RRC, RRO, CDT, CEI, CIT Alex D. Gam le, Associate AIA
Manager, Building Envelope Services Designer
DAW /ADG /jg
Attachments: Photographs
Copies Submitted: Above (Email Only)
RABAKISTN ER
Project: Schertz Recreation Building
Address: 1400 Schertz Parkway
Schertz, Texas
Construction Team:
Project Manager: Unknown
Architect: Munoz and Associates
Construction Manager: City of Schertz
Substantially Complete: Spring 2010
Building Use: Recreation Center
Storm Damage: No (water damage is from
normal weather events)
Fire Damage: No
Project Data
Client: Munoz and Associates
1017 North Main, Suite 300
San Antonio, Texas 78212
Contact: Ronnie Biediger, AIA
Design Code: 2003 IBC
Wind Speed: 90 MPH
Importance Factor: 1.00
Exposure: C
Levels above grade: 1
High Rise by Code: No
Levels below grade: 0
Approximate SF: 33,548
The project is a one story, 33,548 SF municipal Recreation Center located in Schertz, Texas. The building structure in-
cludes a concrete slab on grade, load bearing concrete tilt wall panels and structural steel roof framing. The exterior
building envelope is primary fluted concrete tilt wall panels, glazed aluminum curtain - walls, storefront window sys-
tems, limestone veneer accents and a modified bitumen roof.
Construction documents prepared by the Architect are consistent with industry standards and adequate to convey de-
sign intent to qualified bidders under traditional procurement methods (i.e. design, bid, build via a general contractor).
In this case the procurement method was not "traditional" in that the City of Schertz acted as their own general con-
tractor. It is our understanding that the Architect provided Construction Administration duties to the City similar to
those that they would have provided a general contractor or construction manager.
Water infiltration has been experienced at window openings since substantial completion and numerous attempts have
been made to address these areas. Window systems submitted and used by the construction team are not consistent
with the design intent and the logic used to determine which systems were to be used where is not clear. See eleva-
tions on page 7. Also, note that the YKK "storefront" is similar to what other manufacturers refer to as low rise curtain -
wall, not traditional storefront.
The "as built" conditions at windows are typically not in accordance with the construction documents prepared by the
Architect. For example windows are installed far in excess of the 1" offset (from face of wall) called for in the construc-
tion documents (re: detail 9 on page 23 of this report and photo# 10) and head flashings have been detailed such that
there is not a way to achieve a seal (re: detail 1 on page 22 of this report and photo #12). Additionally the windows are
in a very poor state of repair with obvious visual defects. These defects include loose or missing face caps (photo #2),
unrestrained glass units (photo #1) and framing that is leaning out (photo #18). Safety concerns for the building occu-
pants related to these defects has been communicated to the building management.
End of Project Synopsis
Schertz Recreation Building Page 3
Executive Summary
Since being engaged by Munoz and Associates in July of 2013, Zero /Six has performed the initial steps of the forensic
process required to evaluate the window systems installed at the Schertz Recreation Center. This process has not been
an exhaustive effort in that engineering related to the window systems has not been verified to be adequate and there
has not been any performance testing of the installed products. To this point our investigations have been limited to a
review of the Architectural portion of the "record documents" and a visual inspection of the building. Ordinarily, this
limited amount of study would only suffice to determine what "next steps" in the forensic process should be taken.
However, in this case the issues are clear enough that additional study would provide minimal benefit to solving the
problems at hand; that is the elimination of water infiltration through visibly unstable window installations.
The lion's share of confirmed issues revolve around the storefront systems. This is in large part to the fact that missing
components allow for detailed visual inspections of normally concealed spaces. Although the curtain -wall systems are
not as visibly deficient, there are enough issues to cast doubt with the system engineering. After all, since both systems
were designed (even if not engineered) and installed by the same sub - contractor it would be reasonable to assume
that shortcomings related to engineering (the delegated design process in general) and workmanship would apply to
both systems.
Although shop drawings related to the window systems were not available, the appearance of the installed products
would suggest that "engineered" shop drawings (required for systems to be finalized by the delegated design process)
were not developed. If engineered drawings were prepared by the sub - contractor, they were either a very poor effort
or not followed at all. This comment is tempered by the fact that the manufacturers installation guidelines typically
used in the development of shop drawings have been totally ignored. Components required to complete the perime-
ter seal and components require to manage internal water have all been eliminated and without these components
the systems will not perform as intended. Additionally, critical clearances between glass and framing , clearances be-
tween framing and openings as well as dimensional criteria furnished by the construction documents have also been
ignored. These items were also reported in detail by Raba Kistner during their inspection in June of 2012. Although Ra-
ba Kistner describes the glass systems by room, not by window system, their report recommends that the storefront
systems be replaced with new curtain -wall products and that the existing curtain -wall systems be repaired under the
supervision of qualified persons. We agree that the storefront portions of this project should be replaced and it would
be reasonable for the replacement product to match the systems to remain (curtain - wall). Note that we do not agree
with the statement in the Raba report where the YKK representative states that the "storefront" was not a suitable
product for this project. It is our opinion that the storefront would have performed in an acceptable manner had it been
installed correctly (i.e. we have installed similar products on similar projects with favorable results). We also agree that
the curtain -wall portions of the project can be salvaged, although the extent of the repairs will be significant. Repairs
will include the deglazing and resizing of frames to fit rough openings, which will most likely result in the need for new
glass units at the perimeters of each section (approximately 50 %). Given the choice to repair or replace curtain -wall
systems, savvy contractors may choose to replace the curtain -wall systems, thus eliminating the task of (and time asso-
ciated with) cataloging existing components, verifying anchorage and allowing for a full warranty at the end of the pro-
cess. Zero /Six estimates the cost of replacing all window systems with curtain -wall to be $394,200.00.
If the decision is made to repair the curtain -wall systems, then the systems that are to remain should be fully evaluated
by a structural engineer with curtain -wall expertise. Our brief review has revealed that water infiltration is not the only
concern and all window systems (new or repaired existing) utilized at the recreation center should be certified to re-
main structurally stable when the design loads are applied.
Schertz Recreation Building Page 4
Executive Summary
Lastly, the 1" projection of the windows beyond the face of the concrete tilt wall panels creates an added challenge in
sealing any window system, particularly when sealed to fluted concrete. Zero /Six suggest that future windows installa-
tion be held back such the face cap of the curtain -walls is 1" behind the face of the concrete tilt wall panels.
The balance of this report provides addition detail that helped form the opinions stated in this executive summary.
End of Executive Summary
Schertz Recreation Building Page 5
Agenda No. 4
CITY COUNCIL MEMORANDUM
City Council Meeting: March 22, 2016
Department: Parks
Subject: Resolution No. 16 -R -28 — A Resolution by
the City Council of the City of Schertz,
Texas authorizing a contract with The
Davey Tree Expert Company for tree
pruning services.
BACKGROUND
The City desires to procure tree pruning services as part of routine park maintenance. The Parks
Department has identified seven (7) City parks that require the service: Crossvine /Sedona Park,
Cypress Point Park, Forest Ridge Park, Lone Oak Park, Thulemeyer Park, Ashley Park, and
Schertz Parkway Median. The scope of work will include tree trimming, maintenance and
repair. This project is vital to maintain safe and quality parks in Schertz.
The project was publicly bid using a Request for Proposals (RFP). This method allows the City
to choose a contractor not only based on cost, but on qualifications and experience as well. Two
(2) bids were received for this project. Parks has chosen to recommend The Davey Tree Expert
Company for this project. The Davey Tree Expert Company was the lowest bidder, and after
evaluation of the review committee, Staff determined that The Davey Tree Expert Company was
also the best value selection based on the rest of the criteria including experience, qualifications,
reputation, capability, past performance, experience with other entities, experience with similar
projects, available resources, and corporate history and stability.
Community Benefit
Pruning of all of the trees at each park location will serve several beneficial purposes. These
benefits include improving tree health, vitality, and longevity, improving tree structural integrity
and form, improving aesthetics, and reducing safety hazards and risks by removing dead, dying,
diseased, decayed, and broken limbs 1" caliper and larger within the upper canopy.
Summary of Recommended Action
Staff recommends Council approve hiring The Davey Tree Expert Company for a contract
amount of $119,125 for Tree Pruning Services.
FISCAL IMPACT
The fiscal impact of the project will not exceed $119,125. The project will be paid for from the
Tree Mitigation Fund, budget code 302 - 551110.
RECOMMENDATION
Staff recommends Council approval of Resolution 16 -R -28.
ATTACHMENTS
Resolution 16 -R -28
Exhibit A: Agreement for Tree Pruning Services
RESOLUTION NO. 16 -R -28
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING A CONTRACT WITH THE DAVEY TREE EXPERT COMPANY
FOR TREE PRUNING SERVICES AND OTHER MATTERS IN CONNECTION
THEREWITH
WHEREAS, the Parks Department is charged with the responsibility of landscape
maintenance of the City's park and recreation areas; and
WHEREAS, in order to fulfill its responsibility as set forth above, the City has
identified a need for tree pruning services; and
WHEREAS, two bids were received through the sealed bidding process and The
Davey Tree Company was the lowest bidder and provided the best combination of price and
value at a cost of $119,125;
WHEREAS, The City staff of the City of Schertz (the "City ") has recommended that
the City accept the bid proposal from The Davey Tree Expert Company for tree pruning
services; and
WHEREAS, the City Council has determined that it is in the best interest of the City to
contract with The Davey Tree Expert Company pursuant to the recommendation made by
Parks Staff.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS THAT:
Section 1. The City Council hereby authorizes the City Manager to execute and
deliver the contract with The Davey Tree Expert Company for tree pruning services.
Section 2. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are adopted
as a part of the judgment and findings of the City Council.
Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved
herein.
Section 4. This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Section 5. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the
application of such provision to other persons and circumstances shall nevertheless be valid,
and the City Council hereby declares that this Resolution would have been enacted without
such invalid provision.
Section 6. It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public and public notice of the time, place, and
subject matter of the public business to be considered at such meeting, including this
Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended.
Section 7. This Resolution shall be in force and effect from and after its final
passage, and it is so resolved.
PASSED AND ADOPTED, this 22nd day of Mach, 2016
CITY OF SCHERTZ, TEXAS
Michael R Carpenter, Mayor
ATTEST:
Brenda Dennis, City Secretary
(CITY SEAL)
-2-
CITY OF SCHERTZ
SERVICE AGREEMENT
THE STATE OF TEXAS §
GUADALUPE COUNTY §
This Service Agreement ( "Agreement ") is made and entered by and between the City of Schertz,
Texas, (the "City ") a Texas municipality, and The Davey Tree Expert Company ( "Contractor ").
Section 1. Duration
This Agreement shall become effective upon the date of the final signature affixed hereto and
shall remain in effect until satisfactory completion of the Scope of Work unless terminated as
provided for in this Agreement.
Section 2. Scope of Work
(A) Contractor shall perform the Work as more particularly described in the Scope of Work
attached hereto as Exhibit "A ". The work as described in the Scope of Work constitutes
the "Project ".
(B) The Quality of Work provided under this Agreement shall be of the level of quality
performed by Contractors regularly rendering this type of service.
(C) The Contractor shall perform its Work for the Project in compliance with all statutory,
regulatory and contractual requirements now or hereafter in effect as may be applicable to
the rights and obligations set forth in the Agreement.
(D) The Contractor may rely upon the accuracy of reports and surveys provided to it by the
City except when defects should have been apparent to a reasonably competent Contractor
or when it has actual notice of any defects in the reports and surveys.
Section 3. Compensation
(A) The Contractor shall be paid in the manner set forth in Exhibit "A" and as provided herein.
(B) Billing Period. The Contractor may submit an invoice for payment upon completion of the
described tasks. Subject to Chapter 2251, Texas Government Code (the "Prompt Payment
Act "), payment is due within thirty (30) days of the City's receipt of the Contractor's
invoice. Interest on overdue payments shall be calculated in accordance with the Prompt
Payment Act.
(C) Reimbursable Expenses. Any and all reimbursable expenses related to the Project shall be
included in the scope of Work (Exhibit A) and accounted for in the total contract amount.
CITY OF SCHERTZ PAGE 1
The Davey Tree Expert Company Service Agreement
Section 4. Time of Completion
The prompt completion of the Work under the Scope of Work relates is critical to the City.
Unnecessary delays in providing Work under a Scope of Work shall be grounds for dismissal of
the Contractor and termination of this Agreement without any or further liability to the City other
than a prorated payment for necessary, timely, and conforming work done by Contractor prior to
the time of termination.
Section 5. Insurance
Before commencing work under this Agreement, Contractor shall obtain and maintain the
liability insurance provided for below throughout the term of the Project plus an additional two
years. Contractor shall provide evidence of such insurance to the City. Such documentation
shall meet the requirements noted in Exhibit B.
Contractor shall maintain the following limits and types of insurance:
Workers Compensation Insurance: Contractor shall carry and maintain during the term of this
Agreement, workers compensation and employers liability insurance meeting the requirements
of the State of Texas on all the Contractor's employees carrying out the work involved in this
contract.
General Liability Insurance: Contractor shall carry and maintain during the term of this
Agreement, general liability insurance on a per occurrence basis with limits of liability not less
than $1,000,000 for each occurrence and for fire damage. For Bodily Injury and Property
Damage, coverage shall be no less than $1,000,000. As a minimum, coverage for Premises,
Operations, Products and Completed Operations shall be $2,000,000. This coverage shall protect
the public or any person from injury or property damages sustained by reason of the Contractor
or its employees carrying out the work involved in this Agreement. The general aggregate shall
be no less than $2,000,000.
Automobile Liability Insurance: Contractor shall carry and maintain during the term of this
Agreement, automobile liability insurance with either a combined limit of at least $1,000,000 per
occurrence for bodily injury and property damage or split limits of at least $1,000,000 for bodily
injury per person per occurrence and $1,000,000 for property damage per occurrence. Coverage
shall include all owned, hired, and non -owned motor vehicles used in the performance of this
contract by the Contractor or its employees.
Subcontractor: In the case of any work sublet, the Contractor shall require subcontractor and
independent contractors working under the direction of either the Contractor or a subcontractor
to carry and maintain the same workers compensation and liability insurance required of the
Contractor.
Qualifying Insurance: The insurance required by this Agreement shall be written by non -
assessable insurance company licensed to do business in the State of Texas and currently rated
"B +" or better by the A.M. Best Companies. All policies shall be written on a "per occurrence
basis" and not a "claims made" form.
Evidence of such insurance shall be attached as Exhibit "C ".
Failure of Certificate Holder to demand a certificate or other evidence of full compliance with these
CITY OF SCHERTZ PAGE 2
The Davey Tree Expert Company Service Agreement
insurance requirements or failure of Certificate Holder to identify a deficiency from evidence that is
provided will not be construed as a waiver of Insured's obligation to maintain such insurance.
Section 6. Miscellaneous Provisions
(A) Subletting. The Contractor shall not sublet or transfer any portion of the work under this
Agreement or any Scope of Work issued pursuant to this Agreement unless specifically
approved in writing by the City, which approval shall not be unreasonably withheld.
Subcontractors shall comply with all provisions of this Agreement and the applicable
Scope of Work. The approval or acquiescence of the City in the subletting of any work
shall not relieve the Contractor of any responsibility for work done by such subcontractor.
(B) Compliance with Laws. The Contractor shall comply with all federal, state and local laws,
statutes, ordinances, rules and regulations, and the orders and decrees of any courts,
administrative, or regulatory bodies in any matter affecting the performance of this
Agreement, including, without limitation, worker's compensation laws, minimum and
maximum salary and wage statutes and regulations, and licensing laws and regulations.
When required, the Contractor shall furnish the City with satisfactory proof of compliance.
(C) Independent Contractor. Contractor acknowledges that Contractor is an independent
contractor of the City and is not an employee, agent, official or representative of the City.
Contractor shall not represent, either expressly or through implication, that Contractor is an
employee, agent, official or representative of the City. Income taxes, self - employment
taxes, social security taxes and the like are the sole responsibility of the Contractor.
(D) Non - Collusion. Contractor represents and warrants that Contractor has not given, made,
promised or paid, nor offered to give, make, promise or pay any gift, bonus, commission,
money or other consideration to any person as an inducement to or in order to obtain the
work to be provided to the City under this Agreement. Contractor further agrees that
Contractor shall not accept any gift, bonus, commission, money, or other consideration from
any person (other than from the City pursuant to this Agreement) for any of the Work
performed by Contractor under or related to this Agreement. If any such gift, bonus,
commission, money, or other consideration is received by or offered to Contractor,
Contractor shall immediately report that fact to the City and, at the sole option of the City,
the City may elect to accept the consideration for itself or to take the value of such
consideration as a credit against the compensation otherwise owing to Contractor under or
pursuant to this Agreement.
(E) Force Majeure. If the performance of any covenant or obligation to be performed hereunder
by any party is delayed as a result of circumstances which are beyond the reasonable control
of such party (which circumstances may include, without limitation, pending litigation, acts
of God, war, acts of civil disobedience, fire or other casualty, shortage of materials, adverse
weather conditions [such as, by way of illustration and not of limitation, severe rain storms
or below freezing temperatures, or tornados] labor action, strikes or similar acts,
moratoriums or regulations or actions by governmental authorities), the time for such
performance shall be extended by the amount of time of such delay, but no longer than the
amount of time reasonably occasioned by the delay. The party claiming delay of
performance as a result of any of the foregoing force majeure events shall deliver written
notice of the commencement of any such delay resulting from such force majeure event not
CITY OF SCHERTZ PAGE 3
The Davey Tree Expert Company Service Agreement
later than seven (7) days after the claiming party becomes aware of the same, and if the
claiming party fails to so notify the other party of the occurrence of a force majeure event
causing such delay and the other party shall not otherwise be aware of such force majeure
event, the claiming party shall not be entitled to avail itself of the provisions for the
extension of performance contained in this subsection.
(F) In the case of any conflicts between the terms of this Agreement and wording contained
within the Scope of Work, this Agreement shall govern. The Scope of Work is intended to
detail the technical scope of Work, fee schedule, and contract time only and shall not dictate
Agreement terms.
Section 7. Termination
(A) This Agreement may be terminated:
(1) By the mutual agreement and consent of both Contractor and City;
(2) By either party, upon the failure of the other party to fulfill its obligations as set forth
in either this Agreement or a Scope of Work issued under this Agreement;
(3) By the City, immediately upon notice in writing to the Contractor, as consequence of
the failure of Contractor to perform the Work contemplated by this Agreement in a
timely or satisfactory manner;
(4) By the City, at will and without cause upon not less than five (5) days written notice
to the Contractor.
(B) If the City terminates this Agreement pursuant to subsection 7(A)(2) or (3), above, the
Contractor shall not be entitled to any fees or reimbursable expenses other than the fees and
reimbursable expenses then due and payable as of the time of termination and only then for
those Work that have been timely and adequately performed by the Contractor considering
the actual costs incurred by the Contractor in performing work to date of termination, the
value of the work that is nonetheless usable to the City, the cost to the City of employing
another Contractor to complete the work required and the time required to do so, and other
factors that affect the value to the City of the work performed at time of termination. In the
event of termination not the fault of the Contractor, the Contractor shall be compensated for
all basic, special, and additional Work actually performed prior to termination, together with
any reimbursable expenses then due.
Section 8. Indemnification
CONTRACTOR AGREES TO INDEMNIFY AND HOLD THE CITY OF SCHERTZ, TEXAS AND ALL OF
ITS PRESENT, FUTURE AND FORMER AGENTS, EMPLOYEES, OFFICIALS AND REPRESENTATIVES
HARMLESS IN THEIR OFFICIAL, INDIVIDUAL AND REPRESENTATIVE CAPACITIES FROM ANY AND
ALL CLAIMS, DEMANDS, CAUSES OF ACTION, JUDGMENTS, LIENS AND EXPENSES (INCLUDING
ATTORNEYS FEES, WHETHER CONTRACTUAL OR STATUTORY), COSTS AND DAMAGES
(WHETHER COMMON LAW OR STATUTORY, COSTS AND DAMAGES (WHETHER COMMON LAW OR
STATUTORY, AND WHETHER ACTUAL, PUNITIVE, CONSEQUENTIAL OR INCIDENTAL), OF ANY
CONCEIVABLE CHARACTER, FOR INJURIES TO PERSONS (INCLUDING DEATH) OR TO PROPERTY
CITY OF SCHERTZ PAGE 4
The Davey Tree Expert Company Service Agreement
(BOTH REAL AND PERSONAL ) CREATED BY, ARISING FROM OR IN ANY MANNER RELATING TO
THE WORK OR GOODS PERFORMED OR PROVIDED BY CONTRACTOR - EXPRESSLY INCLUDING
THOSE ARISING THROUGH STRICT LIABILITY OR UNDER THE CONSTITUTIONS OF THE UNITED
STATES.
Section 9. Notices
Any notice required or desired to be given from one party to the other party to this Agreement
shall be in writing and shall be given and shall be deemed to have been served and received
(whether actually received or not) if (i) delivered in person to the address set forth below; (ii)
deposited in an official depository under the regular care and custody of the United States Postal
Service located within the confines of the United States of America and sent by certified mail,
return receipt requested, and addressed to such party at the address hereinafter specified; or (iii)
delivered to such party by courier receipted delivery. Either party may designate another address
within the confines of the continental United States of America for notice, but until written
notice of such change is actually received by the other party, the last address of such party
designated for notice shall remain such party's address for notice.
Section 10. No Assignment
Neither party shall have the right to assign that party's interest in this Agreement without the
prior written consent of the other party.
Section 11. Severability
If any term or provision of this Agreement is held to be illegal, invalid or unenforceable, the
legality, validity or enforceability of the remaining terms or provisions of this Agreement shall
not be affected thereby, and in lieu of each such illegal, invalid or unenforceable term or
provision, there shall be added automatically to this Agreement a legal, valid or enforceable term
or provision as similar as possible to the term or provision declared illegal, invalid or
unenforceable.
Section 12. Waiver
Either City or the Contractor shall have the right to waive any requirement contained in this
Agreement that is intended for the waiving party's benefit, but, except as otherwise provided
herein, such waiver shall be effective only if in writing executed by the party for whose benefit
such requirement is intended. No waiver of any breach or violation of any term of this
Agreement shall be deemed or construed to constitute a waiver of any other breach or violation,
whether concurrent or subsequent, and whether of the same or of a different type of breach or
violation.
Section 13. Governing Law; Venue
This Agreement and all of the transactions contemplated herein shall be governed by and
construed in accordance with the laws of the State of Texas. The provisions and obligations of
this Agreement are performable in Guadalupe County, Texas such that exclusive venue for any
action arising out of this Agreement shall be in Guadalupe County, Texas.
CITY OF SCIIERTZ PAGE 5
The Davey Tree Expert Company Service Agreement
Section 14. Paragraph Headings; Construction
The paragraph headings contained in this Agreement are for convenience only and shall in no
way enlarge or limit the scope or meaning of the various and several paragraphs hereof. Both
parties have participated in the negotiation and preparation of this Agreement and this
Agreement shall not be construed either more or less strongly against or for either party.
Section 15. Binding Effect
Except as limited herein, the terms and provisions of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective heirs, devisees, personal and legal
representatives, successors and assigns.
Section 16. Gender
Within this Agreement, words of any gender shall be held and construed to include any other
gender, and words in the singular number shall be held and construed to include the plural,
unless the context otherwise requires.
Section 17. Counterparts
This Agreement may be executed in multiple counterparts, each of which shall be deemed an
original, and all of which shall constitute but one and the same instrument.
Section 18. Exhibits
All exhibits to this Agreement are incorporated herein by reference for all purposes wherever
reference is made to the same.
Section 19. Entire Agreement
It is understood and agreed that this Agreement contains the entire agreement between the parties
and supersedes any and all prior agreements, arrangements or understandings between the parties
relating to the subject matter. No oral understandings, statements, promises or inducements
contrary to the terms of this Agreement exist. This Agreement cannot be changed or terminated
orally.
Section 20. Relationship of Parties
Nothing contained in this Agreement shall be deemed or construed by the parties hereto or by
any third party to create the relationship of principal and agent or of partnership or of joint
venture or of any association whatsoever between the parties, it being expressly understood and
agreed that no provision contained in this Agreement nor any act or acts of the parties hereto
shall be deemed to create any relationship between the parties other than the relationship of
independent parties contracting with each other solely for the purpose of effecting the provisions
of this Agreement.
Section 21. Right To Audit
City shall have the right to examine and audit the books and records of Contractor with regards
to the work described in Exhibit A, or any subsequent changes, at any reasonable time. Such
books and records will be maintained in accordance with generally accepted principles of
accounting and will be adequate to enable determination of (1) the substantiation and accuracy
of any payments required to be made under this Agreement; and (2) compliance with the
provisions of this Agreement.
CITY OF SCHERTZ PAGE 6
The Davey Tree Expert Company Service Agreement
Section 22. Dispute Resolution
In accordance with the provisions of Subchapter I, Chapter 271, TEX. LOCAL Gov'T CODE, the
parties agree that, prior to instituting any lawsuit or other proceeding arising from a dispute
under this agreement, the parties will first attempt to resolve the dispute by taking the following
steps: (1) A written notice substantially describing the nature of the dispute shall be delivered
by the dissatisfied party to the other party, which notice shall request a written response to be
delivered to the dissatisfied party not less than 5 days after receipt of the notice of dispute. (2) If
the response does not reasonably resolve the dispute, in the opinion of the dissatisfied party, the
dissatisfied party shall give notice to that effect to the other party whereupon each party shall
appoint a person having authority over the activities of the respective parties who shall promptly
meet, in person, in an effort to resolve the dispute. (3) If those persons cannot or do not resolve
the dispute, then the parties shall each appoint a person from the highest tier of managerial
responsibility within each respective party, who shall then promptly meet, in person, in an effort
to resolve the dispute.
Section 23. Disclosure of Business Relationships /Affiliations; Conflict of Interest
Questionnaire
Contractor represents that it is in compliance with the applicable filing and disclosure
requirements of Chapter 176 of the Texas Local Government Code.
Additionally, Pursuant to House Bill 1295 passed by the 84th Texas Legislature (Section
2252.908, Texas Government Code, as amended) and formal rules released by the Texas Ethics
Commission (TEC), all contracts with private business entities requiring approval by the Schertz
City Council must be accompanied by a completed, executed, and notarized Certificate of
Interested Parties, Form 1295. Form 1295 must be completed in accordance with TEC Rules
(https: / /www. ethics .state.tx.us /rules /adopted Nov_2015.htm1 #Ch46) and Section 2252.908 of
the Texas Government Code, as amended
(http: / /www. statutes.legis. state .tx.us /Docs /GV/htm /GV.2252.htm #2252.908).
If applicable, Vendor must include HB 1295 Form with this executed contract.
IF YOU HAVE ANY QUESTIONS ABOUT COMPLIANCE, PLEASE CONSULT YOUR
OWN LEGAL COUNSEL. COMPLIANCE IS THE INDIVIDUAL RESPONSIBILITY OF
EACH PERSON OR AGENT OF A PERSON WHO IS SUBJECT TO THE FILING
REQUIREMENT. AN OFFENSE UNDER CHAPTER 176 IS A CLASS C MISDEMEANOR.
[The remainder of this page is intentionally left blank.]
CITY OF SCHERTZ PAGE 7
The Davey Tree Expert Company Service Agreement
EXECUTED on this the day of , 2015.
CITY:
By:
Name
Title:
John C. Kessel
City Manager
ADDRESS FOR NOTICE:
CITY:
City of Schertz
Attn: John C. Kessel, City Manager
1400 Schertz Parkway
Schertz, Texas 78154
CITY OF SCIIERTZ
The Davey Tree Expert Company Service Agreement
CONTRACTOR:
By:
Name:
Title:
CONTRACTOR:
The Davey Tree Expert Company
18838 FM 2252
San Antonio, TX 78266
210 -981 -2870
PAGE 8
Exhibit "A"
SCOPE OF WORK
Proiect
Contractor shall provide tree pruning services at various City parks.
Location
Crossvine /Sedona Park — 11700 Longleaf Parkway (Pencil Cholla & Gilla Bend)
Cypress Point Park — 556 Cypress Point
Forest Ridge Park — 17529 Wiederstein Road
Lone Oak Park — 100 block of Roundtree Drive
Thulemeyer Park — 901 Oak Street
Ashley Park — 534 Ashley Park Drive
Schertz Parkway Median — Schertz Parkway
Schertz, TX 78154
Scope of Work
Contractor shall provide tree pruning services at various City locations. The work will consist of,
but is not limited to, tree trimming, maintenance and, repairing. The service locations, along with
a specific scope of work, are listed below:
- Crossvine /Sedona Park— 11700 Longleaf Parkway (Pencil Cholla & Gilla Bend)
• Class II prune all trees in future park area as shown on diagram.
• Remove I" diameter and larger deadwood, —70% ball moss, 90% mistletoe growth,
and touch up trunk/interior 3rd canopy sucker growth.
• Lightly thin canopies where needed for health.
• Reduce branch end weight where needed to reduce risk of limb failures.
• Elevate canopies 8' -18' over ground as needed for clearance (based off tree age).
• Elevate canopies 6' -10' over abandoned building for clearance.
• Remove to grade crowded, invasive trees near abandoned building.
• Remove to grade any dead/hazardous trees as deemed necessary.
• Remove existing deadfall /downed trees & limbs.
• Paint wounds on oak species created during work.
• Chip brush debris and blow mulch back out over ground to be repurposed by
Schertz Parks & Rec staff where feasible.
• Remove additional mulch generated and larger logs off site for disposal.
Cypress Point Park — 556 Cypress Point
• Class II prune all trees in park area to elevate canopies & improve appearance.
• Remove 1" diameter and larger deadwood, —70% ball moss, 90% mistletoe growth,
and touch up trunk/interior 3rd canopy sucker growth.
• Lightly thin canopies where needed for health.
• Elevate canopies 8' -12' over ground as needed for clearance (based off tree age).
CITY OF SCIIERTZ PAGE 9
The Davey Tree Expert Company Service Agreement
• Remove to grade dead /hazardous trees as needed.
• Elevate canopies /remove sucker growth for 8' -10' of trail clearance.
• Remove overgrown underbrush and volunteers beneath more mature shade trees.
• Remove existing deadfall on park grounds.
• Paint wounds on oak species created during work.
• Chip brush debris and blow mulch back beneath trees where feasible.
• Remove additional mulch generated and larger logs off site for disposal.
Forest Ridge Park — 17529 Wiederstein Road
• Utility right of way.
• Class III prune native area tree canopies overhanging /within 5 ft. of crushed granite
trail to remove 2" diameter and larger deadwood.
• Remove 1" diameter and larger deadwood, —70% ball moss, 90% mistletoe growth,
and touch up trunk/interior 3rd canopy sucker growth.
• Lightly thin canopies where needed for health.
• Elevate canopies 8' -12' over ground as needed for clearance (based off tree age).
• Remove to grade dead/hazardous trees as needed within 10 ft. of crushed granite.
• Elevate canopies /remove sucker growth for 8' -10' of trail clearance.
• Remove overgrown underbrush within 5' -10' of trail for ease of maintenance.
• Remove existing deadfall within 10' of trail.
• Paint wounds on oak species created during work.
• Chip brush debris and blow mulch back into native area where feasible.
• Remove additional mulch generated and larger logs off site for disposal.
- Lone Oak Park— 100 block of Roundtree Drive
• Class I prune live oak trees in park to improve health, form, & appearance.
• Remove 1/2" diameter and larger deadwood, 80 -90% ball moss, 90% mistletoe
growth, and touch up trunk/interior 3rd canopy sucker growth.
• Heavily thin overgrown canopies where needed for health & light to turf.
• Elevate canopies 8' -12' over ground as needed for clearance (based off tree age).
• Paint wounds on oak species created during work.
• Clean up /haul off debris generated from work.
Thulemeyer Park — 901 Oak Street
• Class II prune all park trees to elevate canopies and improve appearance/health.
• Remove 1" diameter and larger deadwood, —70% ball moss, 90% mistletoe growth,
and touch up trunk/interior 3rd canopy sucker growth.
• Lightly thin canopies where needed for health.
• Elevate canopies 8' -12' over ground as needed for clearance (based off tree age).
• Elevate canopies for 14' -15' clearance where needed for drive clearance.
• Paint wounds on oak species created during work.
• Clean up /haul off debris generated from work.
- Ashley Park — 534 Ashley Park Drive
• Class II prune all trees in park area & 2 trees adjacent to path from Cove Trail.
• Remove 1" diameter and larger deadwood, —70% ball moss, 90% mistletoe growth,
and touch up trunk/interior 3rd canopy sucker growth.
CITY OF SCHERTZ PAGE 10
The Davey Tree Expert Company Service Agreement
o Lightly thin canopies where needed for health.
o Elevate canopies 8' -12' over ground as needed for clearance (based off tree age).
o Trim back native canopies along Cove Trail sidewalk for 4' -6' clearance from
railing.
o Lightly elevate canopies /remove small volunteer trees as needed to clean up
appearance of native area within 5' -10' of maintained edge.
o Paint wounds on oak species created during work.
o Chip brush debris and blow mulch back into native area where feasible.
o Remove additional mulch generated and larger logs off site for disposal.
Schertz Parkway Median — Schertz Parkway
o Class I prune all trees and woody shrubs in Schertz Pkwy median area ( -300).
o Remove 1/2" diameter and larger deadwood, -90% ball moss, 90% mistletoe
growth, and touch up trunk/interior 3rd canopy sucker growth.
o Lightly thin canopies where needed for health and improved form /branch spacing.
o Elevate canopies 6' -10' over ground as needed for clearance (based off tree age).
o Shape back canopies past curb line as needed for street clearance.
o Paint wounds on oak species created during work.
o Clean up /haul off debris off site for disposal.
o Purchase, transport, and properly install new mulch rings around —300 trees and
shrubs in Schertz Pkwy median area.
o Use black - colored, shredded, hardwood mulch and install to depth of Y-4" deep at
edge of berm and tapering to lighter layer within 1 -2" of trunks (no over-mulching!)
o Install rings to radial width of 12 " -36" from trunks as needed based on plant size
and requirements.
o Clean up/haul off any debris generated from work.
Contractor shall possess the necessary equipment to provide requested services. All equipment to
be used and all work to be performed shall be in full compliance with most current revision of
American National Standards Institute, standard Z -133.1 (Safety Requirements for Pruning,
Trimming, Repairing, Maintaining, Removing, and for Cutting Brush).
Price
Total Fee: $119,125.00, to be paid upon final acceptance of work by the City.
CITY OF SCIJERTZ PAGE 11
The Davey Tree Expert Company Service Agreement
Exhibit "B"
REQUIREMENTS FOR ALL INSURANCE DOCUMENTS
The Contractor shall comply with each and every condition contained herein. The Contractor shall provide and maintain
the minimum insurance coverage set forth below during the term of its agreement with the City. Any Subcontractor(s)
hired by the Contractor shall maintain insurance coverage equal to that required of the Contractor. It is the responsibility
of the Contractor to assure compliance with this provision. The City of Schertz accepts no responsibility arising from the
conduct, or lack of conduct, of the Subcontractor.
INSTRUCTIONS FOR COMPLETION OF INSURANCE DOCUMENT
With reference to the foregoing insurance requirements, Contractor shall specifically endorse applicable insurance
policies as follows:
1. The City of Schertz shall be named as an additional insured with respect to General Liability and Automobile
Liability on a separate endorsement.
2. A waiver of subrogation in favor of The City of Schertz shall be contained in the Workers Compensation and all
liability policies and must be provided on a separate endorsement.
3. All insurance policies shall be endorsed to the effect that The City of Schertz will receive at least thirty (30) days
written notice prior to cancellation or non - renewal of the insurance.
4. All insurance policies, which name The City of Schertz as an additional insured, must be endorsed to read as
primary and non - contributory coverage regardless of the application of other insurance.
5. Chapter 1811 of the Texas Insurance Code, Senate Bill 425 82(R) of 2011, states that the above
endorsements cannot be on the certificate of insurance. Separate endorsements must be provided for each
of the above.
6. All insurance policies shall be endorsed to require the insurer to immediately notify The City of Schertz of any
material change in the insurance coverage.
7. All liability policies shall contain no cross liability exclusions or insured versus insured restrictions.
8. Required limits may be satisfied by any combination of primary and umbrella liability insurances.
9. Contractor may maintain reasonable and customary deductibles, subject to approval by The City of Schertz.
10. Insurance must be purchased from insurers having a minimum AmBest rating of B +.
11. All insurance must be written on forms filed with and approved by the Texas Department of Insurance. (ACORD
25 2010/05). Coverage must be written on an occurrence form.
12. Contractual Liability must be maintained covering the Contractors obligations contained in the contract.
Certificates of Insurance shall be prepared and executed by the insurance company or its authorized agent and
shall contain provisions representing and warranting all endorsements and insurance coverages according to
requirements and instructions contained herein.
13. Upon request, Contractor shall furnish The City of Schertz with certified copies of all insurance policies.
14. A valid certificate of insurance verifying each of the coverages required above shall be issued directly to the City
of Schertz within ten (10) business days after contract award and prior to starting any work by the successful
Contractor's insurance agent of record or insurance company. Also, prior to the start of any work and at the same
time that the Certificate of Insurance is issued and sent to the City of Schertz, all required endorsements identified
in sections A, B, C and D, above shall be sent to the City of Schertz. The certificate of insurance and
endorsements shall be sent to:
City of Schertz emailed to: purchasing(&schertz.com
Purchasing Department Faxed to: 210 - 619 -1169
1400 Schertz Parkway
Schertz, TX 78154
CITY OF SCHERTZ PAGE 12
The Davey Tree Expert Company Service Agreement
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CITY OF SCHERTZ PAGE 13
The Davey Tree Expert Company Service Agreement
(Instructions for completing and submitting a certificate to the City of Schertz)
Complete the certificate of insurance with the information listed below:
A) Certificate of Insurance date
B) Producer (Insurance Agency) Information — complete name, address, telephone information, & email address.
C) Insured's (Insurance Policy Holder) Information — complete name & address information
D) Insurer (name /names of insurance company) * *(Remember the city requires all insurance companies to be
Authorized to do business in the State of Texas be rated by A.M. Best with a rating of B+ (or better) Class VI (or
higher) or otherwise be acceptable to the City if not rated by A.M. Best)
E) NAIC # (National Association of Insurance Commissioners, a # that is assigned by the State to all insurance
companies)
F) Insurer letter represents which insurance company provides which type of coverage from D
G) General Liability Insurance Policy — must have an (x) in box. Also, "Occurrence" type policy — must have an (x)
in the box (occurrence policy preferred but claims made policy can be accepted with special approval)
H) This section shall be filled in with "Y" for yes under Additional Insured for all coverages, except for Contractor
Liability and Workers' Compensation. There shall also be a "Y" for yes under all coverages for subrogation
waived.
I) Automobile Liability Insurance — must be checked for Any Auto, All Owned Autos, Hired Autos
J) Umbrella Coverage — must be checked in this section and by occurrence whenever it is required by written
contract and in accordance with the contract value.
K) Worker's Compensation and Employers Liability Insurance — information must be completed in this section of the
certificate of insurance form (if applicable).
L) Builder's Risk Policy — for construction projects as designated by the City of Schertz.
Professional Liability Coverage — for professional services if required by the City of Schertz.
M) Insurance Policy #'s
N) Insurance policy effective dates (always check for current dates)
O) Insurance Policy limits (See Insurance Requirements Checklist)
P) This section is to list projects, dates of projects, or location of project. Endorsements to the insurance policy(ies)
must be provided separately and not in this section. The following endorsements are required by the City of
Schertz.
(1) Adding the City of Schertz as an additional insured. The "additional insured" endorsement is not required for
professional liability and workers compensation insurance; and
(2) Waiver of Subrogation
(3) Primary and Non - Contributory
(4) Cancellation Notice
Q) City of Schertz's name and address information must be listed in this section
R) Notice of cancellation, non - renewal, or material change to the insurance policy(ies) must be provided to the City
of Schertz in accordance with a cancellation notice endorsement to the policy and/or per the policy provisions
based on the endorsement adding the city as an additional insured. (Sec. 1811.155, Tex. Ins. Code)
S) The certificate must be signed by the Authorized Agent in this section of the certificate form.
CITY OF SCHERTZ PAGE 14
The Davey Tree Expert Company Service Agreement
Exhibit "C"
EVIDENCE OF INSURANCE
CITY OF SCHERTZ PAGE 15
The Davey Tree Expert Company Service Agreement
Agenda No.5
CITY COUNCIL MEMORANDUM
City Council Meeting: March 22, 2016
Department: Parks
Subject: Resolution No. 16 -R -29— A Resolution by
the City Council of the City of Schertz,
Texas authorizing a contract with the
Aquatic Renovation & Service company for
pool liner replacement services at Pickrell
pool
BACKGROUND
The City desires to procure swimming pool liner replacement services for Pickrell pool. On
September 15, 2015, Council passed ordinance No. 15 -T -33 to approve funding in the amount of
$65,000 to accomplish this task. The scope of work involves the installation of a new, adhered
PVC pool liner system. This replacement liner will allow the safe use of the pool by the public
for many years to come.
The project was publicly bid using a Request for Proposals (RFP). This method allows the City
to choose a contractor not only based on cost, but on qualifications and experience as well. Three
(3) bids were received for this project. Parks has chosen to recommend the Aquatic Renovation
& Service company. The Aquatic Renovation & Service company was the lowest bidder.
Furthermore, after evaluation of the review committee, staff determined that the Aquatic
Renovation & Service company was also the best value selection based on the rest of the criteria
including experience, qualifications, reputation, capability, past performance, experience with
other entities, experience with similar projects, available resources, and corporate history and
stability.
Community Benefit
Replacement of the pool liner at Pickrell pool is absolutely essential at this time in order for the
public to safely utilize this facility beginning Spring /Summer, 2016. The new liner replaces the
thirteen (13) year -old liner (installed in the Spring, 2003) that has failed.
Summary of Recommended Action
Staff recommends Council approve hiring the Aquatic Renovation & Service company for a
contract amount of $68,293.50 for pool liner replacement services.
FISCAL IMPACT
The fiscal impact of the project will be $68,293.50. The majority of the funding for this project
will be paid from the funding ($65,000) that was already approved via ordinance No. 15 -T -33.
The balance of $3,293.50 will be paid for out of the contingency fund.
RECOMMENDATION
Staff recommends Council approval of Resolution 16 -R -29.
ATTACHMENTS
Resolution 16 -R -29
Exhibit A: Agreement for Pool Liner Replacement at Pickrell Pool
RESOLUTION NO. 16 -R -29
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING A CONTRACT WITH THE AQUATIC RENOVATION AND
SERVICE COMPANY FOR REPLACEMENT OF THE PICKRELL PARK POOL
LINER AND OTHER MATTERS IN CONNECTION THEREWITH
WHEREAS, the Parks Department is charged with the responsibility of maintaining
the infra- structure at Pickrell Pool; and
WHEREAS, it was determined on September 15, 2015, by Council Ordinance No.
15 -T -33 that funding be set aside to replace the failing pool liner in Pickrell Pool; and
WHEREAS, three (3) bids were received through the sealed bidding process and the
Aquatic Renovation and Service company was the lowest bidder and provided the best
combination of price and value at a cost of $68,293.50;
WHEREAS, The City staff of the City of Schertz (the "City ") has recommended that
the City accept the bid proposal from the Aquatic Renovation and Service company for pool
liner replacement services; and
WHEREAS, the City Council has determined that it is in the best interest of the City to
contract with the Aquatic Renovation and Service company pursuant to the recommendation
made by Parks Staff.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS THAT:
Section 1. The City Council hereby authorizes the City Manager to execute and
deliver the contract with the Aquatic Renovation and Service company for pool liner
replacement services.
Section 2. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are adopted
as a part of the judgment and findings of the City Council.
Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved
herein.
Section 4. This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Section 5. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the
application of such provision to other persons and circumstances shall nevertheless be valid,
and the City Council hereby declares that this Resolution would have been enacted without
such invalid provision.
Section 6. It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public and public notice of the time, place, and
subject matter of the public business to be considered at such meeting, including this
Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended.
Section 7. This Resolution shall be in force and effect from and after its final
passage, and it is so resolved.
PASSED AND ADOPTED, this 22nd day of March, 2016
CITY OF SCHERTZ, TEXAS
Michael R Carpenter, Mayor
ATTEST:
Brenda Dennis, City Secretary
(CITY SEAL)
-2-
CITY COUNCIL MEMORANDUM
City Council Meeting: March 22, 2016
Department:
EMS
Agenda No. 6
Subject: Ordinance 16 -T -05 — Budget adjustment to the Schertz
Emergency Medical Services Fund to adjust appropriate
accounts after receipt of grant. First Reading
BACKGROUND:
Schertz EMS has had an active and successful Mobile Integrated Healthcare Program since 2013. We
have focused on High Utilizers of the 911 system and have successfully reduced the number of 911 calls
from multiple patients, freeing up emergency resources in the City. By working with these patients, we
have also improved their access to healthcare, thereby improving their health and quality of life as well as
reducing costs to both the patients and the payers.
Schertz EMS has been an active participant in the Southwest Texas Regional Advisory Council's Mobile
Integrated Healthcare Consortium over the last year and a half. The STRAC MIH Consortium is currently
made up of Schertz EMS and the San Antonio Fire Department. The STRAC MIH Consortium has been
successful in growing both programs and obtaining multiple large resources to allow our patients to
utilize. Recently, the STRAC MIH Consortium was approached by University Health Systems Research
Department and asked to participate in a National Access Improvement Program Grant Project regarding
high utilizer pediatric asthma patients that are covered by Community First Health Plans Insurance. This
project is scheduled to last for six months and will include our MIH Paramedics visiting pediatric asthma
patients in their homes in an effort to educate them and their families on better management of their
disease. The overall goal of the project is to reduce the number of hospital emergency room visits through
proper management of their asthma. The project will grant funds to Schertz EMS to reimburse the costs
associated with visiting these patients.
FISCAL IMPACT
A total of $168,497 has been awarded to Schertz EMS by the STRAC MIH Consortium to cover the costs
of visiting these patients between February 1 and August 31, 2016. These costs will cover one MIH
Paramedic that has been selected from our current full -time paramedic staff. This is not an additional FTE
position at this time, rather a reassignment of duties. We will cover this person's field shifts with part
time personnel. Additionally, these funds will cover a patient care monitor and a vehicle that will be used
by the MIH Paramedic to visit patients as well as other medical supplies necessary for the treatment of
pediatric asthma. Schertz EMS will invoice the STRAC MIH Consortium for all of the incurred expenses
during the project. The grant will cover all expenses related to the program. This program will not need
any additional City funding.
RECOMMENDATION
Staff recommends Council approve Ordinance 16 -T -05 first reading.
ORDINANCE NO. 16 -T -05
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING A BUDGET ADJUSTMENT TO THE
SCHERTZ EMERGENCY MEDICAL SERVICES FUND TO ADJUST
APPROPRIATE ACCOUNTS AFTER RECEIPT OF A GRANT;
REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN
CONFLICT WITH THIS ORDINANCE; AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, pursuant to Ordinance 15 -T -30, the City of Schertz (the "City") adopted the
budget for the City for the fiscal year 2015 -2016 (the `Budget), which provides funding for the
City's operations throughout the 2015 -2016 fiscal year; and
WHEREAS, the City needs to adjust the Budget to increase the Schertz Emergency
Medical Services funding by $168,497 to account for the receipt of a grant for a Mobile
Integrated Healthcare project; and
WHEREAS, City staff recommends that the City Council of the City adjust the Budget
and approve the increase of funding for the Schertz Emergency Medical Services; and
WHEREAS, the City Council of the City has determined that it is in the best interests of
the City to adjust the Budget and increase the adopted budget, as more fully set forth in this
Ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF SCHERTZ, TEXAS:
Section 1. The City shall adjust the Budget and shall increase the Emergency Medical
Services Budget by $168,497 to match the adopted FY 2015 -16 Budget to the proposed budget.
Section 2. The sums below show the corrected EMS budget line items for the FY 2015-
16 Budget after grant acceptance:
2015 -2016 EMS Budget
LINE ITEM
Original Budget
Amended Budget
Personnel Services
$ 3,407,571
$ 3,479,251
Supplies
$ 393,831
$ 400,731
Human Services
$ 1000
$ 1,000
City Support Services
$ 34,850
$ 34,850
Utility Services
$ 149,840
$ 151,653
Operations Support
$ 62,555
$ 62,655
Staff Support
$ 84,600
$ 84,792
City Assistance
$ 13,400
$ 13,400
Professional Services
$ 146,680
$ 146,680
Fund Charges
$ 2,556,485
$ 2,556,485
Maintenance Services
$ 77,100
$ 77,380
Debt Service
$ 205,498
$ 205,498
Rental Lease
$ 81,541
$ 81,541
Operating Equipment
$ 234,500
$ 242,827
Capital Outlay
$109,000
188,204
Total
$ 7,558,451
$ 7,726,947
Section 3. The City will recognize $168,497 additional revenue through the grant,
offsetting the increase in budget. No additional City funds will have to be spent as a part of this
project.
Section 4. The recitals contained in the preamble hereof are hereby found to be true, and
such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part
of the judgment and findings of the Council.
Section 5. All ordinances and codes, or parts thereof, which are in conflict or
inconsistent with any provision of this Ordinance are hereby repealed to the extent of such
conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters
resolved herein.
Section 5. This Ordinance shall be construed and enforced in accordance with the laws
of the State of Texas and the United States of America.
Section 6. If any provision of this Ordinance or the application thereof to any person or
circumstance shall be held to be invalid, the remainder of this Ordinance and the application of
such provision to other persons and circumstances shall nevertheless be valid, and the City
hereby declares that this Ordinance would have been enacted without such invalid provision.
Section 7. It is officially found, determined, and declared that the meeting at which this
Ordinance is adopted was open to the public and public notice of the time, place, and subject
50558021.1 - 2 -
matter of the public business to be considered at such meeting, including this Ordinance, was
given, all as required by Chapter 551, as amended, Texas Government Code.
Section 8. This Ordinance shall be effective upon the date of final adoption hereof and
any publication required by law.
PASSED ON FIRST READING, the 22nd day of March, 2016.
PASSED, APPROVED and ADOPTED ON SECOND READING, the 5`h day of April,
2016.
CITY OF SCHERTZ, TEXAS
Michael Carpenter, Mayor
ATTEST:
Brenda Dennis, City Secretary
(CITY SEAL)
50558021.1 - 3 -