ccswks 06-06-1995
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SPECIAL WORKSHOP SESSION OF THE CITY COUNCIL
JUNE 6, 1995
The Schertz City Council met in Special Workshop Session,
following the Regular Session, on Tuesday, June 6, 1995, in
the Municipal Complex Conference Room, 1400 Schertz
Parkway, Schertz, Texas. The following members were
present: Mayor Hal Baldwin, presiding; Councilmembers
Charles McDonald; Joe Potempa; Timothy Swinney and Ken
Greenwald. Absent: Councilmember Dereda Burkett. Staff
present were City Manager Kerry Sweatt and City Secretary
Norma Althouse.
#1 Discuss mid-year budget amendments.
Mr. Sweatt reminded Council they each should have a copy
of the document titled Mid-Year Budget Adjustments FY 94/95
and dated May, 1995. He will try to review the highlights
first, and then answer any specific questions Council may
have about individual departments.
The revenue includes estimates of increases that account
for $87,693. Under the General Fund, on page 3, increases
as well as decreases are reflected. Those total a net
increase of $87,693. That's made up primarily of the
recovery of an interest and sinking fund double payment,
the sale of park property for $25,000, an estimated
increase in sales tax of $30,000, and under miscellaneous
income, the pass through of an AACOG solid waste study.
There are some decreases noted that appear to be in line
with our major activities. They reflect our best guess
based on where we were at six months into the fiscal year.
Mayor Baldwin asked about the $25,000 sale of park property
and Mr. Sweatt advised that was the property in Oak
Forest. We are restricted to using it for park purposes
and as we get into expenditures, we'll be discussing that.
Mayor Baldwin also remarked that the $20,000 we're
budgeting for recycled materials is good. Mr. Sweatt said
he believes, quite frankly, they're going to exceed that.
The price of paper has jumped from $50 a ton to $90 a ton.
Through five months of the fiscal year, we're at $11,000.
Mr. McDonald asked if Alamo Waste is still accumulating
stuff they haven't sold and Mr. Sweatt replied very
little. The month of May's collection of glass and tin are
the only items that haven't been sold. The quantity hasn't
been worth delivering.
Mr. Potempa asked what's wrong with the Municipal Court
system. He noticed we keep losing. Mr. Sweatt explained
they are taking a hard look at it. There's a lot of use of
actions other than monetary fines. There's deferred
adjudication and defensive driving. Every year at budget
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time we look at this and say we're writing more tickets and
such and such is going to happen, and then at mid-year come
back and adjust it back down. We have an internal
committee reviewing some of our procedures to determine if
maybe we can streamline the process a bit.
Mr. McDonald asked if we're writing more tickets and Mr.
Sweatt answered yes we are, but receiving less revenue.
Part of it has to do with alternatives to paying fines.
Mr. Potempa asked if the city still has a contract with a
warrant commission to collect our warrants and Mr. Sweatt
replied yes we do. Mr. Potempa then commented that the
amount of revenue from warrants seems low. Mr. Sweatt
pointed out that amount is just the Municipal Court warrant
fees, not the warrants. The Municipal Services Bureau,
with whom we contract, is a firm to which we turn over
warrants after 60 days and outside of a 50 mile radius, and
we've been getting a good response. Mr. Potempa asked if
we still have a local warrant officer and was informed we
do.
Mayor Baldwin asked what the huge increase in 46110,
general fund miscellaneous income, represents. Mr. Sweatt
answered that comes primarily from two things: (1)
recovery of a double interest and sinking fund payment from
the bank that flowed back to the general fund upon
collection; and, (2) a contract with AACOG for a Solid
Waste Study. (The payment for the Solid Waste Study will
show up later as an expenditure of $5,000.)
Mr. Sweatt referred back to page 1 where it shows a
breakout of the expenditures and revenues for the general
fund. There is a projected revenue increase of $87,693.03
and a projected expenditure increase of $82,663.31. A
projected closing fund balance of $20, 168.72 is basically
the recycling revenue. Council had asked that it be set
aside as a reserve against future expenditures for public
purposes.
Mayor Baldwin asked if the City is going to maintain
records on the recycling revenue and account for every
penny at the end of the first two years. Mr. Sweatt
indicated that is correct. We keep a running total each
month of the volume and the receipts. The Council, as of
this date, has not approved an expenditure from that fund.
The commitment initially was to hold it in reserve for the
first year and make a decision at next year's budget time
as to how the money will be spent. Mr. Sweatt, saying he
knows there's a lot of uses, needs, wants and desires, felt
one of the items Council may want to think about for future
years is when our current recycling contract with Alamo
Waste expires, Mr. Gutierrez will probably want an
increase and Council may want to use a portion of the
recycling income to buy that rate down. Of course, there
are many other legitimate uses for the recycling income.
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Mr. McDonald asked how many customers the City has and how
much that is per customer. Mr. Sweatt replied there's
approximately 4,000 customers. We're currently paying
$1.25 per month per customer. Mr. Greenwald remarked the
basic intent behind the holding of the money in reserve was
to look at whatever amount Mr. Gutierrez is going to bring
in for a rate increase. Everyone is well aware of the fact
he was not happy with the $1.25. He made that offer and
then when he put the numbers to it, he couldn't do it.
Mr. McDonald asked if anyone knew about a new recycle test
plant being built on 1-10, but no one did.
Mr. Swinney observed that the $25,000 from the sale of the
park will relieve quite a bit of pressure from wanting to
use the recycling reserve fund for parks, but Mr. Sweatt
explained to Mr. Swinney that it probably will not,
because we have been asked to budget for the repainting of
the large pavilion. Currently that project is estimated to
cost about $30,000. As we get into the expenditures, you
will see a $30,000 expenditure in the Park Department which
will use up all that $25,000 plus $5,000 more. Everyone
agreed it needs to be repainted. Mr. Greenwald pointed
out that when you sell parkland, the only way you can spend
that money is for parks and for nothing else. Mr.
Greenwald also stated if the City had to come up with
$25,000 in next year's budget, they would be hard-pressed,
so this is almost a gift. Mr. McDonald again brought up
the source of the hotel/motel tax and said that improving
your parks is tourist enhancement for which that tax money
could be used.
Mr. Swinney questioned if we issue many speeding tickets
on IH-35. Mr. Sweatt answered we limit our officers'
involvement on IH-35 to no more than an hour at the close
and beginning of each shift. Clearly there is a need for
enforcement. It has been our philosophy, however, that
there are many more needs for a police officer rather than
just sitting up along IH-35.
Mr. Greenwald mentioned we're limited anyway on how much
we can collect off IH-35. Mr. Sweatt added there is a
bill now which limits the maximum amount of fines of a
municipal corporation budget to 30%. Schertz is nowhere
near that.
Mr. Potempa, commenting he's suggested this before,
indicated he would like to see Schertz go to a step
program. It would give the officers more money and no
doubt cut down on the number of accidents. Mr. Sweatt
stated the City would follow the direction of Council, but
in the overall scheme of things he feels the bad press and
problems associated with a rigorous enforcement of the
speed limit causes more ill will than good. Mr. Sweatt
then remarked he is sure Council is aware of a nationwide
movement to do away with the national speed limit and
return the control of the speed to the states and
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consequently back to the cities.
Getting back to the budget, Mr. Sweatt reported the
primary expenditures include the recommendation of a salary
change across the board to all City personnel. An increase
is proposed for each of the employees to implement a
revised salary plan effective April 1, 1995. For those
employees at salary grade 4 through 18, the average is a 4%
increase. For those at salary grade 19 and up, it is a
flat 3% increase.
Mr. Sweatt continued, saying the City has a salary plan
that was developed in the early 1980's as a result of a
personnel study. It has been continually updated and
upgraded with either cost of living raises or other various
kinds of raises built into the program. Over a period of
time, however, it has gotten out of step. We had
circumstances where there was no uniformity either
vertically or laterally. We have long embraced and
encouraged a merit program based on evaluation for lateral
step improvements and the vertical has been a job
classification plan that pretty well has maintained a clear
relationship between particular positions. Over the years,
however, there has been some flattening out and a
deterioration of the differences between the individual
steps. A proposed plan will correct those anomalies and
errors and establish a clear career path in each horizontal
step that will amount to a 2% differential between each
step going laterally and a beginning 3% going vertically.
The total recommended increase to the general fund this
year is $35, 685, to the water and sewer fund it is $6,929,
and to SAFES it is $5,392, for a total overall cost this
fiscal year of $48,008.
Mr. McDonald asked how much we gave each person at the
beginning of the budget year and Mr. Sweatt replied we
gave them 3% across the board. Mr. McDonald then wondered
what the total cost was at that time, but Mr. Sweatt did
not have those figures with him. Mr. McDonald then
remarked this increase would cost the City $96,000 per
year. Mr. Sweatt reminded Council those figures are not
the amount they will see next year because there will be
the availability of step increases. Mr. Potempa observed
then next year you won't have an across the board raise,
but Mr. Sweatt disagreed, saying they probably will. He's
just pointing out this number will be subject to those
employees who will have a two step increase between now and
next year.
Mr. Sweatt noted this proposed plan was the result of
Council's direction. Mr. McDonald acknowledged they had
talked about the 3% across the board given at the beginning
of this fiscal year and then the pOSSibility of another 2%
at mid year if we had the money. Mr. Sweatt commented
they attempted to do a study and report to Council, as they
requested, on how the City could increase its salaries to
make them more competitive with our immediate neighbors.
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Unfortunately, this proposal of an average of 4% increase
for employees at salary grade 4 through 18 and a flat 3%
increase for those at salary grade 19 and up will not
change our relative position in almost any category. We're
still one of the lowest paid in the area of police
salaries. Mr. Potempa asked for a comparison of that
between Schertz and Converse and Mr. Sweatt replied in
Converse, the minimum police salary is $1500 per month and
the maximum is $1833 per month. Under the City's new
recommendations, the minimum is $1425 per month and the
maximum is $1844 per month. Mr. Sweatt explained we
surveyed basically all of our neighboring cities and found
that the average starting salary for a police officer is
$1603 per month. Our current starting salary is $1384 per
month and the new rate would be $1425 per month, still
almost $200 per month under the average. The maximum
average is $1936 per month. Our current maximum is $1688
per month and the new rate would be $1844 per month, still
$100 per month below the average. That same situation
generally exists through the ranks of second lieutenant and
dispatcher.
Mr. Sweatt went on to say they looked at areas other than
police officers and found that on a local and statewide
basis, the City still fares well below the average, even
with the increases. Mayor Baldwin remarked you will never
ever catch up by having percentage increases on pay plans.
The gap is too hard to close. The only way it can be done
is to analyze the salaries and asked if you're ready to
spend the amount needed to adjust those salaries to make
them competitive with other cities.
There was a brief discussion on merit pay raises and the
fact they are, in most cases, used to raise the employees'
salaries. Mr. Swinney asked if, because of the lower
salaries, the City has a low retention rate of employees.
Mr. Sweatt answered they have had a lower turnover rate in
the past several years than they had been experiencing
previously. Mr. Sweatt then pointed out people work for a
lot of reasons, and salary is certainly one of them, but it
is not the only reason. He then mentioned it looks like
we're stabilizing, but still experiencing, in some
professions, a move to another city when an employee gets
close to the top because the other city pays more.
Mr. Sweatt related the Council has done some very positive
things for employees as far as the retirement system, the
longevity payments, the insurance program, and vacation and
sick leave. The City's fringe benefits are very comparable
and in some cases maybe a bit better.
Mayor Baldwin stressed, that as the tax base grows, the
City is going to have to commit major chunks of money to
adjusting salaries so we fit in with our competitors.
We should not be the largest city and yet have the lowest
salaries.
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Mr. Potempa mentioned we are facing the dilemma of
purchasing a new fire truck and ~e doesn't see anything in
this budget, reserve or anything else, to start putting
money away to get a new truck. Mr. Greenwald reminded Mr.
Potempa they just passed the first reading of the
Southwestern Bell ordinance which would pay the City a
settlement of $160,000. Mr. Sweatt suggested City Council
c0nsider dedicating the bulk of the proceeds from the
settlement to the acquisition of a new fire pumper. If
Council makes that action at a future meeting, Mr. Sweatt
said he expects the Fire Department will start preparing
plans and specifications so we can solicit bids and be
ready to purchase a new fire truck. We're looking at
somewhere between $145,000 and $185,000. A new truck is a
high priority.
Mr. Swinney remarked the City is proposing two fire
substations in the next bond issue and asked if a bond
issue can include vehicles. Mr. Sweatt replied the
initial bond issue did not anticipate construction of a
substation in the first element, but yes it can pay for the
price of equipment.
After looking through the mid-year budget amendments, Mayor
Baldwin concluded the salary increases are the only real
large amount. Mr. Sweatt acknowledged that's true. The
only other considerable amount is for the painting of the
pavilion and it's in the budget. Mr. Sweatt briefly
reviewed some of the other costs.
Mr. Potempa asked what recognizing insurance deductibles
for specifiC insurance cases means. Mr. Sweatt explained
we have two insurance cases pending, that are covered under
our TML professional liability insurance, and we have
deductibles we have to meet in both cases.
There being no further question on the budget amendments,
Mayor Baldwin asked if they will approve these by official
action at the next regular meeting and Mr. Sweatt
indicated he would like to place it as an action item on
their next workshop agenda if that's okay with Council.
Council had no problem with that.
Before adjournment Mayor Baldwin mentioned, that at the
Northeast Partnership meeting today, Mayor Carroll said the
old Golden Corral restaurant is now the North China Buffet.
He also mentioned there will be a Taco Cabana built near
the new Hi Lo auto parts store and the Golden Corral is
constructing a new restaurant on the same piece of land
next to where the new Acme Lumber will be located.
Mayor Baldwin then introduced Richard Nash who was in
attendance at the meeting.
Mr. Greenwald suggested it's time for another tour of the
City, especially since we have some new Councilmembers.
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Mr. Potempa
Waste. Mr.
would file
City would be
asked if the City is going to annex
Sweatt commented they have indicated
a request for annexation if they thought
receptive.
Alamo
they
the
Speaking of annexation, Mr. Greenwald asked if the City
had gotten anything definite on Northcliffe. Mr. Sweatt
answered they just received a study today that looked at
one more round of bond information. For the first time,
it's beginning to look like something Schertz could
consider doing. He reported he had spoken to a group of
Northcliffe residents about a month ago and the feelings
are mixed about annexation. Some of the residents are real
anxious to be annexed by Schertz and others are just as
adamant about not being annexed. Talk of Northcliffe
prompted discussion about the feasibility of golf courses,
municipal and otherwise, about the MUD districts, about
gated communities and about extended municipal services.
Mayor Baldwin updated the Council on the situation at the
Texaco on the corner of Aero and Schertz Parkway and said
Melissa Flores called him today and she thought the owner
would be at the Council meeting tonight to apologize for
his nephew's actions and swear to us his nephew would never
do anything like it again. Apparently the owner has
refused to fire his nephew. Mr. Sweatt remarked that Mrs.
Flores had told him last week the owner was going to fire
his nephew. Mayor Baldwin said it's a situation where the
nephew's mother is dying of cancer and he needs the job.
Several Councilmembers thought writing to Texaco would
solve the problem. Mr. Sweatt advised a case related to
that particular Texaco has gone to the grand jury.
# 2 ADJOURNMENT
On a motion
unanimously
by Mr. Potempa, seconded by Mr. Greenwald and
carrled, the meet~~journed at 8,45 p.m.
Mayor, City of Schertz, Texas
ATTEST
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City Secretary, City of Schertz