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ccswks 08-31-1994 240 SPECIAL MEETING OF THE CITY COUNCIL AUGUST 31, 1994 The Schertz City Council met in Special Workshop Session, Wednesday, August 31, 1994 at 7:00 p.m. in the conference room of the Municipal Complex, 1400 Schertz Parkway, Schertz, Texas. The following members were present: Mayor Hal Baldwin, presiding; Councilmembers Charles McDonald; Joe Potempa; Barbara Stanhope; Mary Marsh and Ken Greenwald. City Staff members present were City Manager Kerry Sweatt, Deputy City Secretary Norma Althouse, Administrative Assistant Mark Marquez and Police Chief Norman Agee. Mayor Baldwin called the meeting to order at 7:00 p.m. #1 HEARING OF RESIDENTS: A. Mrs. Betty Britt, a resident of Mobile Villa Estates, voiced a complaint regarding permit fees. Mrs. Britt indicated they had been told there would be no charge for permits when they signed up to hook onto the sewer and gas. Nothing was said about high or low income, just that they wouldn't have to pay. Now, those with the higher incomes are having to pay permit fees. Mayor Baldwin asked Mr. Sweatt if he would like to speak to this matter and Mr. Sweatt advised if the sewer and gas permits are paid at the same time, it is a $20.00 fee, but if they're paid separately, then it's $15.00 each or a total of $30.00. The only fees the City ever discussed waiving were the CDBG fees. Mayor Baldwin asked Mrs. Britt who had told her they wouldn't have to pay any permit fees and she replied the City Inspector, Leonard Truitt. Councilman Potempa backed Mrs. Britt up saying he had been at the meeting and that's what Leonard Truitt said. Mr. Sweatt commented he had spoken with Mr. Truitt about this and Mr. Truitt told him he didn't waive the fees. Furthermore, Mr. Truitt is not in a position to waive fees, that would be up to City Council. Mayor Baldwin suggested the matter be investigated further and be included on a future workshop agenda. Mr. Sweatt asked for names of witnesses who had attended the meeting where this all took place. Mr. McDonald inquired if time is important and Mayor Baldwin said he supposed we could reimburse anyone who paid that we determine shouldn't have. B. Mr. Jim Harris referred briefly to a letter he had in the paper this week and then reported he had attended all the budget workshop meetings and the budget, overall, appears adequate. He agrees with the 3% raise for employees, he wouldn't agree to a larger percentage, and maybe there can be more of a raise next year due to all the new home construction. Mr. Harris further stated one thing Council has to be sensitive to is the administrative personnel cost creep. You'll find this creep in most non-profit government organizations who get their money from grants or have a way to ~ 241 raise taxes. There should be some quantifying factors for the hiring of new administrative personnel. Mr. Harris commented he approves the inter local agreement between the Police Department and the school district but thinks there could be the appearance of conflict of interest on the part of Mayor Baldwin because he works for the school district. Mayor Baldwin thanked the citizens for their comments. #2 Briefing by the Guadalupe County Juvenile Advisory Board regarding needs. Judge Leroy Cinnamon, teen court judge, informed the Council they may finally be bringing some juvenile services to Schertz. Judge Cinnamon pointed out that County Judge James Sagebiel, Chief Guadalupe County Juvenile Probation Officer Harry Marek and local probation officer Stephanie Mitchell are present tonight for the briefing. Judge Sagebiel spoke first and noted they have no solid plans at this point. What they are considering is possibly building a larger facility in Seguin and possibly additional holding facilities in Schertz. They need a home-like facility. They have outgrown the current facility, and lack of security there is a problem. Crime is not isolated, it is county-wide, and the legislature is serious about children and has regulations which prohibit overcrowding. It appears monies will be made available to local governments to help deal with overcrowding. What they don't want to do is jam up against another bond issues. They want to present this to the citizens carefully. Judge Sagebiel also stressed that you have to be thinking about more than just locking them up - you have to think of programs that will provide some help for them. Mr. Greenwald asked if they had done any investigation to see what they may need and Judge Sagebiel replied they are looking at modules or pads because you can add to these on down the road. Mr. McDonald asked the estimated lead time and Judge Sagebiel replied almost a year because they have to have programs in place. Mayor Baldwin asked if they have any satellite facility plans and Judge Sagebiel answered they will need some type of holding facility. Mr. Sweatt then inquired if they are looking at personnel and Judge Sagebiel answered yes, that's expensive factor. additional the most Harry Marek then gave a brief review of the daily routine of juveniles at the facility. Mr. Marek said they get up at 5:30 a.m., go to school all day, have three rigorous exercise 242 programs and are permitted only 45 minutes each day of television. Your tax dollars are not being wasted. Stephanie Mitchell related there have been some staff assaults by juveniles at the center. Ms. Mitchell indicated she realizes it takes time away from patrolling the streets when the Schertz Police have to transport juveniles to Seguin. An additional facility would be beneficial. They feel like they're losing the battle with probation. One of the citizens present blamed the increase in crime on laws that take discipline away from families. When his children grew up, if they needed physical discipline, he saw to it that they got it. You can't do that today or you risk the possibility of having your children taken away from you. Councilman Greenwald pointed out we elect the judges that create these laws. Mr. Greenwald then asked if there are any statistics to show how much increase there has been in juvenile crime and Harry Marek told him the biggest increase is in the area of serious offenses. Mrs. Marsh wondered when they're going to go after the parents of these juveniles. Judge Sagebiel told the Council he will be back to update them on any progress and concluded the presentation at this time. #3 Discussion of requests: public hearings on the following A. G. Russell Hutchins, on behalf of Cottaae Lifestyles. Inc.. requesting a zoning change for 14.57 acres on E. Live Oak Road from NS to R-4. Mr. Sweatt pointed out the location on the map and then related that nine letters had been sent to property owners within 200' and none had been returned. The Council's public hearing is scheduled for next Tuesday. The Planning and Zoning Commission recommends approval contingent on construction beginning within six months of the final zoning approval and contingent also on a senior citizen development being built on the site. Mr. Sweatt passed around a brochure he had about Cottage Lifestyles, Inc. and mentioned they qualify for some of their financing by using housing tax credits. Mr. McDonald commented he knew they had requested a copy of the waiting list for the Housing Authority and also their utility allowances. Mr. Greenwald remarked that quite a few citizens showed up for the Commission's public hearing. Mrs. Stanhope, referring to the public hearing, implied they had stressed they will advertise locally, their applicants must be 55 years of age and older, the residents of the senior citizen complex cannot have ~" 243 children two-week have all September living with them and grandchildren are limited to visit. Mrs. Stanhope stressed the Council needs its questions together for the public hearing 6th. a to on Mr. Sweatt indicated that to qualify, they have to have some residents with a low to moderate income. Mrs. Marsh said it states the laws of the Affirmative Fair Housing Marketing Plan will be followed. Mayor Baldwin commented if those laws pertain to all people over 55 years of age, that's not a problem. Mr. Baldwin then encouraged everyone to read the Letter to the Editor in the Herald this week about seniors resenting young tenants. Mr. Sweatt, stating this is a fully taxable piece of property, acknowledged they are eligible to apply for a tax abatement. Mrs. Stanhope declared she thinks it's a neat idea and Mayor Baldwin requested this item be placed on the agenda of September 6th for a public hearing. B. Veytia acres at R-4. Partners. Ltd. requests a zoning change for 8.61 the corner of Elbel and Schertz Parkway from NS to Mr. Sweatt pointed out the location on the map and then related that nine letters had been sent to property owners within 200' and none had been returned. Two of the adjoining properties are owned by the City. The Council's public hearing is scheduled for next Tuesday. The Planning and Zoning Commission recommends approval contingent on construction beginning within six months of the final zoning approval. It is his understanding they will build up to 200 units of multi-family housing. Mrs. Marsh wanted to know about the reputation of the builder and wondered if they will see a rendering of what's proposed to be built. Mr. Greenwald told Mrs. Marsh that's part of the platting process. To the best of his knowledge, it will be two-story, and perhaps some three-story, apartment units, with a sprinkler system, and will be a gated community for security purposes. Mrs. Marsh said she doesn't like to agree to change the zoning just to change it unless she can see what's going in there. Mrs. Stanhope asked if there is any formula for giving us the occupancy rate of apartments in the area and Mr. Sweatt commented he thinks it runs above 90%. Mayor Baldwin inquired what happens if the zoning change is approved and nothing is built within six months. Does it just hang there? Do we have to have another public hearing to change it back? Mr. Sweatt answered he believes it reverts back to the original zoning, but will check that point with the City Attorney. 244. Mr. Greenwald informed the Council that the extend Westchester Drive out to Elbel Road. This to have been done by the developers of Sycamore Sweatt remarked this is not a universally shared the property owners in the Village. builder will was supposed Creek. Mr. wish of all Mayor Baldwin requested this item be placed on the September 6th agenda for a public hearing. C. Rayco. Ltd. requests zoning change and variances for property on both sides of Schertz Parkway. Mr. Sweatt pointed out the location of the property as being 50.6 acres on the west side of Schertz Parkway and 105.2 acres on the east side of Schertz Parkway that they are requesting be rezoned from R-2 and GB to R-6. Mr. Sweatt related that 89 letters were sent to property owners within 200' and 3 were returned undeliverable, 6 returned opposed and 3 returned in favor. The Council's public hearing is scheduled for next Tuesday. The Planning and Zoning Commission had quite a lengthy discussion on this and is recommending approval of the rezoning and approval of the variances requested with some exceptions and stipulations. Mr. Greenwald explained that Rayco had requested a variance from all 60' x 100' lots on the west side of Schertz Parkway to lots that are a mixture of 55', 60' and 65'x 120' giving them flexibility for house plans and trees. The Commission approved the request with the stipulation that only 30% of the lots be 55' in width. Rayco had requested that all the lots on the east side of Schertz Parkway be 55' x 120', but the Commission approved a variance the same as that for the west side. They felt 105.2 acres was too many lots only 55' in width. Mr. Greenwald went on to say Rayco had requested a variance to the 7' and 8' side yard setback to allow a 5' side yard setback on one side only, maintaining a 15' separation between all buildings. The Commission approved this for both the east and west sides of the parkway. Finally, Mr. Greenwald stated Rayco had requested a variance to the landscaped buffer along Schertz Parkway from 20' down to 10' and this was approved by the Commission for both sides of the parkway. Mr. McDonald inquired if there will be a new road out to FM 3009 and Mr. Sweatt answered there's a possibility there will be one beside the nursing home. Regarding the landscaped buffer, Mrs. Marsh asked what happens if they need to widen Schertz Parkway and Mr. Greenwald replied they already have the right-of-way to do that. ~/. 245 Mayor Baldwin asked if there will be a mandatory homeowners' association to maintain the green space and was told there will be. Mr. Potempa wondered how long before completion and Mr. Sweatt indicated the answer to that would be market driven. Going back to the landscaped buffer, Mayor Baldwin commented he has a problem with giving part of it away. He has no problem with a 6' wall, if it looks nice, but hates to give away an extra 10' of green space. Mr. Sweatt observed that on the west side there are lots of trees, but on the east side there are not trees all the way back. Mrs. Stanhope, who had attended the Planning and Zoning Commission's public hearing, reported Rayco had said they will try to save as many trees as possible. Mr. Potempa asked if Rayco is eligible for a tax abatement and Mr. Sweatt replied they are not, but they will, however, enhance the TIF district. Mark Marq~ez noted they may be asking for assistance on the sewer operation. Mayor Baldwin requested this item be placed on the September 6th agenda for a publi~ hearing. #4 Consider and take action regarding selection of Financial Audit Services Mayor Baldwin announced that before they get into it, since Don Cormie, representing one of the bidders, is present but wasn't here in time to sign up to speak, he will allow him to say a few words. Mr. Cormie told the Council they have been in the area for 30 years, they would like to have the City af Schertz's business, they are knowledgeable in the Certificate of Achievement award (they judge this award for other states) and would appreciate being considered by the City. Mr. Sweatt informed the Council they received proposals from five firms by the deadline. Those firms are (1) Padgett, Strateman and Co. of San Antonio, (2) Hanke, Green & Stein of San Antonio, (3) Blakeslee, Lewis and Co. of Pflugerville, (4) Patillo, Brown and Hill of waco, and (5) Thompson, Williams, Biediger, Keator and Young of San Antonio. Whoever is chosen will enter into a two-year engagement with the City. The firm of Hanke, Green & Stein came in with the lowest bid and, after being interviewed by the audit committee, has been recommended by them. Mrs. Marsh expressed the opinion she is leery of Hanke, Green and Stein due to their lack of experience. Mayor Baldwin, reading from the Government Code, said the choice should be made on the basis of competence and low bid is not the key word in selection. 246 Mr. McDonald told the Council he had met with this group. Alice Jenkins has extensive experience and if they do what they say they will do, there is no problem. They have access to experts and he was very impressed with them. Mrs. and some, that about Marsh Stanhope asked how much difference there is between Texas other states and Mr. Sweatt replied there certainly is probably in grants and state funds. Mayor Baldwin added probably most guidelines are national, but he is nervous a new firm taking on a city the size of Schertz. Mrs. agreed she doesn't want Schertz used as a training base. There was some discussion about the other firms with the Council wanting to know their specific experience. Mrs. Stanhope asked if we're under a time frame and Mr. Sweatt replied the new firm would begin at the close of this fiscal year. A five minute recess was taken so Mr. Sweatt could get his files on all the firms. After the recess Mrs. Marsh asked how much we paid an audit firm last year and in years before that. Mr. Sweatt answered the City has paid as much as $15,000 and as little as $11,500. Mrs. Stanhope wanted to know where this is in the budget and Mr. Sweatt replied it is divided half and half between Non-Departmental in the General Fund and Professional Services in Water. They are budgeting $15,000 for this item. At this time Sweatt giving Marsh favored based on their the firms were reviewed one by one with Council each firm's specific experiences. Thompson, Williams, Biediger, Kastor and time in the business and their experience. Mr. Mrs. Young Mayor Baldwin ruled out those from Waco and Pflugerville due to the distance, but Mr. Greenwald pointed out if we have received a bid from them, distance is not a factor. Mr. Potempa wanted to know if we go with the lowest bid and they don't perform to City standards, can they be terminated. Mr. Sweatt replied yes they can, we would not renew their contract for the second year. Mr. McDonald moved to approve the firm of Hanke, Green & Stein for financial audit services. Mr. Potempa seconded the motion which did not carry due to the following vote: AYES: Councilmembers McDonald and Potempa. NAYS: Councilmembers Stanhope, Marsh and Greenwald. Mrs. Marsh moved to approve the firm of Thompson, Williams, Biediger, Kastor and Young for financial audit services. Mrs. Stanhope seconded the motion which carried with the following votes: _/ 247 AYES: NAYS: Councilmembers Stanhope, Marsh and Greenwald. Councilmembers McDonald and Potempa. #5 Discuss resolution urging modification of legislation and regulation of the Endangered Species Act Mr. Sweatt reminded Council they placed a similar issue, in the form of a resolution, to TML asking for region support of that issue and that it be considered by TML. It was favorably carried by Region 7 at the Municipal League meeting and we expect it will go forward to the Municipal League as a whole for consideration as a position paper. The original Endangered Species Act was adopted in 1973 and this resolution reflects state-wide support for change to federal regulations. Mayor Baldwin requested this item be placed on the September 6th agenda for action. #6 Discuss Interlocal Agreement with SCUC-ISD regarding law enforcement and emergency communications service. Mayor Baldwin, saying he wanted to assuage Mr. Harris's fears, declared this is the first time he has seen this agreement - he had nothing to do with it. Mr. Sweatt advised it is the result of a discussion he and Chief Agee had with representatives of the school district, specifically Chief Anders and Dr. Gary Herbert. They discussed the ramifications of the agreement and the workload. That was about the time they were completing an arrangement with the City of Cibolo and they told the school district they wanted to wait and see what that did to our workload. Mr. Sweatt related they have identified the areas for specific support services and the amount they're asking for is predicated on the number of calls and types of services needed. The agreement will be subject to renegotiation next year. Mr. Potempa asked how much involvement there would be school district and Chief Agee replied they're doing anyway for free. This should lessen our load and reevaluate it at the end of this school year. with the it now we will Mr. Agee than hour Mayor Potempa asked if false calls will be eliminated and Chief indicated they will dispatch the school's police rather the City's. Mayor Baldwin pointed out this is not a 24 service. Mrs. Stanhope asked what the hours are and Baldwin answered the school hours. Mr. Potempa asked how many police are at the school and Mayor Baldwin replied just two, the Chief and a patrolman. Mayor Baldwin then asked that this item be placed on the September 6th agenda for action. 24~ #7 Discuss amendment to CDBG Interlocal Agreement for economic development plan to extend project completion date. Mr. Sweatt reviewed the situation saying the City entered into an agreement with Bexar County to be part of a Metrocom cooperative to develop an economic development study. The cities of Schertz, Converse, Kirby, Live Oak, Selma and Universal City joined together with a request for a study, which was funded by Bexar County, of economic development plans and programs. The original agreement called for the project to be completed by now and we have run over that time. Bexar County asked us to formally request an extension and amend the agreement to provide for the completion to be extended until August 30th (even though that was yesterday) and that will clean up the paperwork for them and satisfy CDBG. Mayor Baldwin asked that this item be placed on the September 6th agenda for action. #8 CITY MANAGER'S REPORT: A. Reported the City is watching the demise of the Afghan Pine tree out in front - it is dying. Mrs. Marsh asked from what and Mr. Sweatt replied they're not sure. They have contacted tree experts and followed their advice and they spoke with the Agricultural Extension Service who said it might live if it were trimmed, but nothing has worked. They plan to cut it down and replace it with a native, healthy tree. Mrs. Marsh asked what they will use for a Christmas tree and Mr. Sweatt acknowledged that may be a thing of the past. It will be replaced with other decorations. B. Reminded everyone the Business Appreciation Dinner will take place September 22nd at 6:00 p.m. at the VFW. that the #9 ITEMS BY COUNCIL: Mr. Greenwald: A. Informed everyone Schertz is getting its first hotel/motel. The plat for Ramada Inn Ltd. has been approved. Mr. Marquez noted it will be of mediterranean style with 60 rooms and a meeting room. Mayor Baldwin asked how many stories and ~as told by Mr. Sweatt two stories now and three later. There was a brief discussion on the hotel/motel tax. Mr. Marquez admitted ours is at 7%. Mayor Baldwin asked when the groundbreaking will be and Mr. Sweatt answered they are hoping for it sometime in September. B. Reported the Canyon Lake Water Supply Corporation is in the process of buying a bunch of wells and taking a share of Canyon Lake Water. Mrs. Marsh asked what the impact will be and Mr. Greenwald replied it decreases what's left to buy. Mr. Greenwald expressed the opinion the City should buy now while they have the chance. ~ 240 Mr. McDonald: A. Announced the Housing Authority has an emergency meeting tomorrow to deal with the contractor again. Mr. Potempa stated he had a call from Donna Lackey of the Housing Authority asking him to furnish data on rainfall in Schertz. She had received some misleading information from San Antonio. Mr. Potempa told her he would be available to corne down and use his log to help her out. B. Referred to the letter in the paper by Mr. Kelly of TXDoT saying the widening plan for FM 3009 was not defective or deficient. Mr. McDonald was really disturbed by the letter and suggested everyone read it. Mrs. Stanhope: A. Noted she had attended the Humane Society Jamboree with Mayor Baldwin and his wife and it was fairly good event. B. Brought up some highlights of the Schertz Business Association meeting she had attended: (1) they welcomed Metro-Ambulance with a plaque; (2) Garden Ridge Pottery renewed their membership; (3) Mr. Sweatt gave the City Hall update; (4) they gave the Jubilee report as follows: (a) concluded they need porta-potties next year, (b) they are going to get a quote on year-round liability insurance; (c) the dates next year will be June 30th through July 4th; (d) the carnival will be the same and run during the day; (e) on July 2nd there will be an arts and crafts show called "Christmas in July"; (f) there will be a dance on July 2nd and 3rd; (g) there will, of course, be the opening ceremonies and the parade with the theme being "Memories of Yesteryear"; and, (h) they are recommending the fireworks display be increased to $3500 (5) they are talking about sponsoring youth activities such as dances for young peoplei (6) they discussed the making of community Christmas calendars for the Metrocom area; (7) the next meeting is September 27th; and, (8) Ann Almond and Anita Clark thanked the City for their support of the Jubilee. C. Asked, if when the budget process is over, are they to discuss the Animal Control ordinance and the old shelter and Mr. Sweatt answered probably. going animal Mr. Potempa: A. Evans and Evans had started work in Villa and it's looking good. Mobile B. The Jerry Lewis telathon is this weekend. r. McDonald: A. Announced the Housing Authority has an e ergency meeting tomorrow to deal with the contractor again. Mr. Hous.l g Schert . Antonio down and stated he had a call from Donna Lackey of the Authority asking him to furnish data on rainfall in She had received some misleading information from San Mr. Potempa told her he would be available to come use his log to help her out. B. Referr saying the deficient. and suggested to the letter in the paper by Mr. Kelly of TXDoT widening plan for FM 3009 was not defective or r. McDonald was really disturbed by the letter veryone read it. (1) ( 2 ) ( 3 ) ( 4 > Mrs. Stanhope: Jamboree with Mayo event. she had attended the Humane Society and his wife and it was fairly good B. Brought up so Association meeting s highlights of the Schertz Business had attended: bulance with a plaque; newed their membership; Hall updatej eport as follows: ta-potties next year, quote on year-round liability they welcomed Metro Garden Ridge Pottery Mr. Sweatt gave the t they gave the Jubilee (a) concluded they need ~ (b) they are going to get insurance; (c) the dates next year wil (d) the carnival will be (e) on July 2nd there will called "Christmas in JulY"jO (f) there will be a dance on Jul nd and 3rd; (g> there will, of course, be th ening ceremonies and the parade with the the being "Memories of Yesteryear"; and, ,~ (h) they are recommending the \fi eworks display be increased to $3500 ~\ they are talking about sponsoring youth ctivities such as dances for young people; A~ they discussed the making of community cH~ calendars for the Metrocom areaj the next meeting is September 27th; and, Ann Almond and Anita Clark thanked the support of the Jubilee. e June 30th through July 4th; e and run during the day; an arts and crafts show ( 5 ) ( 6 ) ( 7 ) ( 8 ) their C. Asked, if when the budget process is over, are to discuss the Animal Control ordinance and the shelter and Mr. Sweatt answered probably. Mr. Potempa: A. Evans and Evans had started work in Villa and it's looking good. B. The Jerry Lewis telathon is this weekend. y/ 25] Mrs. Marsh: Stated she takes offense to the letter in the paper about FM 3009. We are not a bunch of greenies. We had a public hearing, with about 150 citizens attending, 5 or 6 years ago and discussed the problems and complications of widening FM 3009. Our funds for the City were diverted two years ago for the Fiesta Texas project. Mayor Baldwin confirmed the City has a long history of one problem after another in regard to the Highway Department and roads. Mr. Sweatt indicated they are trying to get an appointment with Mr. Kelley. #10 ITEMS BY MAYOR: Mr. Baldwin reported that Hugo Ackermann is in the hospital at Northeast Baptist. Merwin Willman said he had a heart attack. Mr. Sweatt, saying he had something to add, announced a joint meeting of the cooperative cities, the economic development committees, and various other commissions at the Live Oak Civic Center for the final economic development study report. This meeting is tentatively scheduled for September 26th at 7:00 p.m. #11 BUDGET WORKSHOP Mr. Sweatt mentioned a few housekeeping items. First, in the Council's packet are sheets called Change #3. This affects pages 1, 2, 61, 63, 91, 93, 94, 95, 97 and 98. Change #3 increased Fleet Services by $8200 and reduced Capital Recovery by $8200. It was an error in printing. Second, there is an increase of $100.00 to the Administration Department budget to pick up a bond that was neglected. The bottom line of the budget is changed by $100.00 Mr. Sweatt referred to the letter about a possible change in Animal Control uniforms and said provisions have been made to buy new uniforms if necessary. Mr. Sweatt reported a change to the budget as a result of June Krause's impending retirement. The budget will increase by $1029 and he asked Council to consider approving that module. Mr. Sweatt explained that Norma Althouse, current Planning Secretary and Deputy City Secretary will move up to the position of City Secretary and the City Manager's secretary will become the Deputy City Secretary. The Planning and Zoning Secretary's position will revert back to a lower grade and no longer include the title of Deputy City Secretary. The City Secretary's position has been modified somewhat. June Krause also carried the title of Personnel Director and Deputy City Manager. The human services responsibilities of personnel will be taken on by Mark Marquez and he will have some clerical support to help him out and to help out front also. The 252 overall net cost is an increase of $1029. Several members of the Council expressed concern about this and the fact that economic development is a full-time job. They did not want these new responsibilities being taken on by Mr. Marquez to interfere with that. Mayor Baldwin suggested they rely on Mr. Sweatt's judgment. He will not let economic development suffer. The Council gave its consensus of approval to accept the module increasing the budget by $1029. The tax rate was the next topic of discussion. The cost of updating the pavilion was mentioned and several members felt strongly about doing something to update it this year. The possibility was suggested that money from the sale of the parkland in Oak Forest be used for that purpose and that a strong commitment be made to do something by mid-year. The possibility of using hotel/motel revenue tax for that purpose was also suggested. Mrs. Marsh recommended Mr. Sweatt continue to investigate what's needed to bring the pavilion up to date. Going back to the tax rate, Mr. Sweatt noted that traditionally at the public hearing on the budget, Council has adopted both the budget and the tax rate at that meeting. If Council desires to have a tax rate 43.09 cents or greater, then it will be necessary to have a second public hearing. If the desire is for a tax rate lower than 43.09 cents, then a second public hearing will not be required. Mrs. Stanhope wanted to know if the 3% salary increase for employees makes us competitive. Mr. McDonald admitted he would like to see another salary increase of 2% at mid-year. Mr. Greenwald pointed out until we get a larger business base versus the single-family dwelling base, we can't be competitive. Mayor Baldwin reminded everyone the budget includes the 3% salary increase and also another 2 1/2% for merit increases. Mrs. Marsh felt they are cutting the tax rate too much. It's nice to lower taxes, but there are things the City needs and when taxes have to be raised again, she hopes they don't hear a big outcry from the citizens. Mrs. Marsh then asked what the City has in reserve and Mr. Sweatt answered that by the end of this Fiscal Year they will have reached the point of three months in reserve. Mayor will Mr. Baldwin suggested setting the tax rate at 43 cents which keep them at less than 3% under the effective tax rate. McDonald recommended 42.75 cents. ~- 250 Mayor Baldwin polled the Council for their consensus which was as follows: 43.0 cents - Councilmembers Stanhope, Marsh and Greenwald. 42.75 cents - Councilmembers McDonald and Potempa. Mr. Sweatt related that Mark Marquez and Alice Austin have done yeoman work on the budget. Mr. Potempa moved to adjourn the meeting at 10: 15 p.m. and Mrs. Stanhope seconded the motion which carried unanimously. Mayor, City of Schertz, Texas ATTEST: Deputy City Secretary, City of Schertz