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ccreg 03-16-1993 -\ .... ..- , ' 1..1 ' REGULAR MEETING OF THE CITY COUNCIL MARCH 16. 1993 The Schertz City Council convened in Regular Session Tuesday, March 16, 1993 at 7:00 p.m. in the Council Chambers of the Municipal Complex, 1400 Schertz Parkway, Schertz, Texas. The following members were present: Mayor Earl W. Sawyer, presiding: Hal Baldwin, Barbara Stanhope, Mary Marsh and Ken Greenwald. Absent: Joe Potempa. Staff present were City Manager Kerry Sweatt and City Secretary June Krause. Mayor Sawyer welcomed everyone to the meeting and asked if they would join him in the Pledge of Allegiance. He then called on Anita Clark, President of the Business Association, who presented the Employee Quarter award to Joyce Andrews. Schertz of the Mayor Sawyer then called Mrs. Evelyn Barnes forward and read a proclamation making her "Star of the Month" for March 1993. Mrs. Barnes said that being a volunteer in Schertz had been very rewarding to her. #1 PUBLIC HEARING: Mayor Sawyer declared the purpose of the hearing was to receive citizen comments on a proposal to create a Tax Increment Reinvestment Zone along Schertz Parkway for the purpose of widening Schertz Parkway and infrastructure improvements. Mayor Sawyer welcomed Judge Brannon to the meeting. Sagebiel and Commissioner Mr. Sweatt representing surgery. introduced our City Acting City Attorney Diana Attorney who is recuperating Dean, from Mr. Sweatt then advised that 207 notices were sent to property owners falling within 1000 feet along Schertz Parkway, inviting them to attend this public hearing. This is a provision of state law to allow the city, and other taxing jurisdictions, to create a financial arrangement in which certain improvements are made to the property without the obligation of increased taxation. This anticipates that as improvements are made to the property, that tax value on the property increase. He said that Mr. Marquez has some slides to help explain this. We have been to both the Schertz-Cibolo-Universal City Independent School District and Guadalupe County Commissioner's Court and both have endorsed and agreed to participate in this project. ilS Mr. Marquez advised that Tax Increment Financing is relatively new to the State of Texas. One of the things that is important about this concept is that the program is not driven by property tax rates but by property values. Mr. Marquez' first chart showed property values as they would rise over a 36 year period. He indicated that this chart makes the assumption that land values will rise at the rate of 1% per year for the next 36 years. The chart shows the base value as established and the captured value which accrues as the land value rises. He then showed a chart dealing with revenues. It indicated the flat line which shows the entities will never receive lower taxes than that. The chart showed the area above the flat line, which is the revenue from which the tax increment financing receives its funds. Of course the chart indicated the ideal world: however, Mr. Marquez reminded that there will be times when the values might even fall below the base line and no revenues would go into the fund. On being questioned, Mr. Marquez said the money would be used for widening and improvements to Schertz Parkway from I-35 to 200 feet east of Live Oak Road. This could include curbing, sewer, underground utilities and things like that. Mr. Sweatt said the actual plan will be determined after the district is created and a Board of Directors is appointed. The Board will include appointed members by the City Council, School Board and Commissioner's Court. One citizen asked if this would be assessed on just the Schertz Parkway property owners or on all citizens of the city. Mr. Marquez said only for the Schertz Parkway property owners and he pointed out that it is not an increase in taxes in any way. Mr. Ackermann asked done about drainage. original plan; add drainage. if on the lower part would anything be Mr. Marquez advised that not in the however, the Board of Directors could When asked about the make up of the Board, Mr. Marquez advised it would be made up of two appointees from the City Council, two from the School District and two from the County Commissioners Court. Mr. Sweatt advised that the law states that the City will appoint the Chairman. Mr. Marquez said that staff has put together a preliminary plan and Council has approved that plan. Now the Board of Directors must approve the plan; but, if they make adjustments, then it will have to be brought back to the Council for approval as well as the other entities' approval. Mr. Marquez answered several questions from the audience, including: Will the project be started with money on hand 119 or will they be borrowing? Mr. Marquez stated normally with money on hand: however, if property values rise and everything looks good, then the Board could decide to go with bonds. In the event this should be decided down the road this is a bad move, the money in the fund would go back to the entities in proportion that it was given. Is that not a tax abatement? Mr. there cannot be a tax abatement Financing Zone. Marquez said in the Tax no, and Increment Mayor Sawyer said that what we want to accomplish improve the property in the zone without putting burden on the citizens. is to a tax Judge Sagebiel thanked both Mr. Sweatt and Mr. Marquez for going to Commissioners Court and providing them with the information to make their decision. He added that the County government wished to work and cooperate with the cities. The Commissioners, after extensive study and questions, feel this could be very beneficial to the whole county. He ended by saying they look forward to working with the other entities on this project. Mayor Sawyer closed the public hearing at 7:42 p.m. #2 APPROVAL OF MINUTES: A. Regular Meeting 2-16-93. Mrs. Stanhope IDQy~g to approve the minutes of the Regular Meeting of February 16, 1993. Mr. Baldwin seconded the motion, which carried as follows: AYES: Councilmembers Baldwin, Stanhope, and Greenwald NAYS: None ABSTAINING: Mrs. Marsh #3 HEARING OF RESIDENTS: None #4 AGREEMENT: Consider and take action regarding a proposed financing agreement with Schertz Bank and Trust for a portion of police fleet purchase. Mr. Sweatt advised that in the 1992-93 budget, we have funded a portion of the purchase of five new vehicles for the Police service and propose to use this agreement to fund the remaining $35,163 over a twelve month period. Mrs. Marsh ID9V~d to approve the agreement with the Schertz Bank and Trust for a portion of the purchase price for five police vehicles. Mr. Greenwald seconded the motion, which carried with the following vote: 120 AYES: Councilmembers Greenwald. NAYS: None Baldwin, Stanhope, Marsh and #5 RESOLUTION: Mayor Sawyer introduced a resolution and read the caption as follows: RESOLUTION NO. 93-R-4 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE APPLICATION TO THE CRIMINAL JUSTICE DIVISION, OFFICE OF THE GOVERNOR OF THE STATE OF TEXAS, FOR GRANT FUNDING TO THE ALAMO AREA NARCOTICS TASK FORCE PROJECT TO BE USED TO PAY THE OPERATING EXPENSES OF THIS PROJECT AND TO SUPPORT THE COST OF PROVIDING ADDITIONAL PERSONNEL, EQUIPMENT, FACILITIES, PERSONNEL TRAINING AND SUPPLIES FOR MORE WIDESPREAD APPREHENSION OF PERSONS WHO VIOLATE FEDERAL, STATE AND/OR LOCAL LAWS RELATING TO THE PRODUCTION, TRANSPORTATION AND DISTRIBUTION OF CONTROLLED SUBSTANCES IN THE JURISDICTION OF THE ALAMO AREA NARCOTICS TASK FORCE PROJECT. Mr. GreenwaldJffiov~d to approve the resolution authorizing participation in the Alamo Area Narcotics Task Force. Mrs. Stanhope seconded the motion, which carried as follows: AYES: Councilmembers Greenwald. NAYS: None Baldwin, Stanhope, Marsh and Mr. Brown road blocks was legal. legal. asked if this was the same group that put up the on 1-35 and was it ever checked out to see if it Mr. Sweatt said it was the same group and was Mr. Baldwin said that was like the curfew. some people think it violates their personal rights but Council felt it was important to the community. #6 CONTRACT: participation in an Edwards Underground Program. Consider and take action regarding Interlocal Contract Agreement with the Water District Conservation Rebate Mr. Sweatt said the Edwards Underground Water District has a program which they have made available to the City of Schertz. The funds, in the initial amount of $5,000, are to begin an ultra low-flow toilet replacement program. Our Plumbing Code dictates that fixtures be replaced from a 3.5 gallon per flush fixture with a 1.6 gallon fixture. The District has made arrangements with an initial $5,000 to the City of Schertz to be used as a rebate or refund to I21 individuals who change out their old toilet fixtures for the new 1.6 gallon per flush fixture. This provides individuals the incentive to make the change and over the long run the people will pay for the fixture with the savings in water usage. We recommend Council authorize staff to inter into an Interlocal Governmental contract agreement with the Edwards Underground Water District. Mrs. Marsh moved to authorize participation in an Interlocal Contract Agreement with the Edwards Underground Water District Conservation Rebate Program. Mrs. Stanhope seconded the motion, which carried with the following vote: AYES: Councilmembers Greenwald. NAYS: None Baldwin. Stanhope, Marsh and #7 CITY MANAGER'S REPORT: A. With the hiring of the newest Police personnel, who came to us from the Comal County reserve, brings our police force back up to strength. #8 ITEMS BY COUNCIL: None #9 ITEMS BY MAYOR: None # 10 seconded 7:52 p.m. ADJOURNMENT: On a ffiQtJ"Q]1 by by Mrs. Stanhope, the meeting was Mr. Baldwin, adjourned at ~4o/~~~. ~.. ~~or. City of S~rtz. Texas ATTEST: ~.. -t-<...L- - (-- ,. ._,-' Ci y SecretFr ,