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ccreg 08-03-1993 0) , ~lu REGULAR MEETING OF THE CITY COUNCIL AUGUST 3, 1993 The Schertz City Council convened in Regular Session Tuesday August 3, 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; Joe Potempa; Hal Baldwin; Barbara Stanhope; and Ken Greenwald. Absent: Mary Marsh. Staff present were City Manager Kerry Sweatt and City Secretary June Krause. Mayor Sawyer welcomed everyone to the meeting and asked them to rise and join him in the Pledge of Allegiance. He then announced that he had a real pleasant duty to perform and called several youth forward, saying he was very proud of each and everyone of them. He then read a proclamation recognizing the youth and adults from the Schertz United Methodist Church who volunteered their time and talent to construct a 14' x 16' addition for "Eddie's Room". Eddie Escobedo was paralyzed as a result of a senseless action and needed this extra room for his equipment. #1 APPROVAL OF MINUTES: Regular Meeting of 7-14-93 Mr. Greenwald moved to approve the minutes of the Regular Meeting of July 14, 1993. Mr. Potempa seconded the motion, which carried with the following vote: AYES: Councilmembers Potempa, Baldwin and Greenwald NAYS: None ABSTAINING: Mrs. Stanhope #2 HEARING OF RESIDENTS: None #3 POLICE appointing Robert Force. RESERVE: Consider and take action on Honeycutt to the Schertz Police Reserve Chief Agee introduced Robert W. Honeycutt, a graduate of San Antonio College and a long-time friend of Warrant Officer Schupp, adding that he felt this man would be an asset to the department and recommending appointment. Mrs. Stanhope moveq to appoint Robert W. Honeycutt to the Schertz Police Reserve Force. Mr. Greenwald seconded the motion, which carried as follows: AYES: Councilmembers Potempa, Baldwin, Greenwald. NAYS: None Stanhope and #4 ORDINANCE: Mayor Sawyer introduced an ordinance and read the caption as follows: ORDINANCE NO. 93-M-12 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, AMENDING THE CODE OF ORDINANCES BY AMENDING SECTION 10-71, EXCEPTIONS, OF ARTICLE IV - GUNS, "BB" GUNS, PELLET GUNS, OF SAID CODE; AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT. Mr. Baldwin moved to approve the final consideration of an ordinance amending the Code Sec. 10-71 Exceptions. Mrs. Stanhope seconded the motion, which carried as follows: AYES: Councilmembers Potempa, Baldwin, Stanhope, and Greenwald NAYS: None #5 ORDINANCE: Mayor Sawyer introduced an ordinance and read the caption as follows: ORDINANCE NO. 93-D-13 AN ORDINANCE PROVIDING THAT THE CODE OF ORDINANCES, CITY OF SCHERTZ, TEXAS, BE AMENDED BY REVISING CHAPTER 18, ARTICLE II, SECTION 18-45 OF SAID CODE, PROVIDING FOR RESTRICTIVE VEHICLE WEIGHT LIMITS OF FIFTEEN THOUSAND (15,000) POUNDS TO BE PLACED ON SCHERTZ PARKWAY, EAST LIVE OAK ROAD, PFEIL ROAD AND LOWER SEGUIN ROAD; AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT. Mr. Greenwald moved to approve the final consideration of an ordinance amending the Code by providing restrictive vehicle weight limits for Lower Seguin Road. Mr. Potempa seconded the motion, which carried with the following vote: AYES: Councilmembers Potempa, Baldwin, Greenwald NAYS: None Stanhope and #6 PERSONNEL proposed changes to Employee Manual. MANUALS: Consider and take action the Personnel Policy Manual and on the Mr. Sweatt reminded that this item was discussed at the last workshop. The changes include a number of word changes and the addition of the Family Leave Act and Harassment. We made one change at the workshop dealing with implementation date from one year to six months. Mrs. Stanhope moved to approve the changes to the Personnel Policy Manual and the Employee Manual as proposed. Mr. Baldwin seconded the motion, which carried as follows: 220 AYES: Councilmembers Potempa, Baldwin, Stanhope and Greenwald NAYS: None #7 E911 BUDGET: Consider and take action on the proposed E911 FY 98 Budget. Mayor Sawyer advised that this was discussed at the workshop and Council found no fault with it. Mrs. Stanhope moved to approve the proposed E911 Budget. Mr. Greenwald seconded the motion, which with the following vote: FY 94 carried AYES: Councilmembers Potempa, Baldwin, Stanhope and Greenwald NAYS: None #8 CITY MANAGER'S REPORT: None #9 ITEMS BY COUNCIL: None #10 ITEMS BY MAYOR: None At 7:14 p.m. Mayor Sawyer called a short recess in for Council to move to the Conference Room for workshop session. order budget The Regular Meeting was reconvened at 7:17 p.m. Conference Room of the Municipal Complex. in the #11 BUDGET WORKSHOP: Discussion and consideration of the FY 1993-94 proposed budget. Mayor Sawyer commented that he was sorry Mrs. Marsh was unable to be present because he felt it important if the entire Council was present at budget meetings. Mr. Sweatt called attention to the new format of the budget being presented this year a loose-leaf binder with replaceable pages. He advised that as changes are made, we will be giving out replacement pages. Mr. Sweatt said that as a result in the decrease in assessed valuation of about $3,297,225 from FY 92-93, the total recommended tax rate for FY 93-94 is 46.84 cents per $100 value. As a result of the decrease in assessed value, a tax rate increase of 0.78 cents is necessary to produce the equivalent of 92-93 ad valorem revenue. An increase of 2.10 cents is necessary to fund additional debt service for bonds issued in December 1992. We took a severe hit on the Tri County Business Park. This is the fifth year in a row that we have had a decrease in valuation. Next year we should begin to feel the result of the new homes. Last year's tax rate was 42.55 cents for $100 value. The recommended new tax rate is 46.84 cents for $100 value. ..--.-' 221 That represents a 4.29 cent increase in the tax rate - that is effectively a 10.08 percent increase. The effective tax rate - the new rate that it would take to produce the same amount of income based on the new assessed value - would be 43.33 cents. The new debt service requirement will be 9.53 cents per $100 value. The 0.78 cents to produce the equivalent of 92-93 ad valorem revenue, plus the 2.10 cents necessary to fund the new bonds, plus the 1.41 cents to fund additional expenditures for FY 93-94, brings us to the 4.29 cent increase proposed. Each cent in the tax rate at the current assessed value produces roughly $25,267 in taxes. Mr. Sweatt gave as an example, the proposed tax rate increase from 42.55 to 46.84 on a $50,000 house is a net increase of $21.45 a year. The roll back rate, calculated on the effective tax rate, is 48.15 cent per $100 value. So, at the recommended 46.84 cents for $100 value, we are significantly under the roll back rate. The most significant single item in the budget is the provision for the 24/48 hour shift arrangement in the Fire Service. It requires us to add 1-1/2 persons to our current manning program. We also propose the addition of a 6th dispatcher, to add one full-time person in the finance office. Those are the significant personnel changes. In order for those to fit our budget, we have proposed those additions for the last six months only. We strongly need to add the fire service now; but we could not bring you a balanced budget without additional tax increase. This budget does continue the police vehicle replacement program. We will schedule four vehicles to be replaced this year. The budget also proposes to purchase an auxiliary generator to power this building, the emergency operating center and the community center totally in times of emergency power outages and to top off the peak power demands. It is a long-term payout program. There are no other major capital outlay items in the budget and the salary changes are across the board merit availability according to our program. We were not able to bring forward a cost of living increase such as we did last year. We do have a few reclassifications that will effect the budget. We also have a few that do not effect the budget. The SAFES ambulance operation is a balanced budget. It does, however, recommend an increase in the per capita charge to $4.18 per capita for each of the contributing entities. The transport rate was increased last year so there is not one recommended this year; but an itemized rate schedule is included so that there are charges for services that have in the past been included in the basic bill. The rest of that is for manpower and to fund an additional vehicle for replacement in this coming budget. We are running the wheels off these ambulances and need to start replacing them. Randolph Air Force Base has approached SAFES to provide full ambulance service to the base as opposed to 'certain hour coverage now. We are negotiating with them now to see if they would like to fund a vehicle. They will pay a per capita charge like any ?~'j ~~LI other entity or we will work out a better deal for ambulance replacement. As discussed previously, we are recommending a water and sewer increase. We recommend a water rate increase of 50 cents in the basic charge for water and the adoption of an inverted rate structure for water charges to be in effect for a portion of FY 93-94. The projected inverted block rate structure for water customers is designed to encourage conservation and will affect the average and lower than average customer significantly less than those having a higher consumption rate. Projections for waste water revenue includes an increase from $3.25 to $4.50 in the base charge. The remainder of our sewer bill is a pass through charge only, it is $1.40 per 1000 for each 1000 gallons used of our winter time average. We make no money because this is a pass through directly to CCMA. Our base charge was designed to pay the operating cost of the sewer portion of our water/wastewater services and to meet the debt services, it has not been doing that. For the last few years, water has subsidized sewer. The $1.25 recommended increase in the base charge for both residential and commercial is the only increase in the wastewater charge. We are recommending an increase in the water base water rate of from $6.50 for the first 3000 gallons to $7.00 for the first three thousand gallons. Our current rate is $1.11 for all consumption past there. We propose to eliminate that. The base rate then would be $7.00 for the first 3000 gallons and $1.11 for the next 3000; but from that point on adopt an inverted rate structure that is on increments of 3000 gallon units, increasing at a rate of 20 cents per 1000 block, and tying that to a living unit equivalent so that a 5/8" meter is one living unit. The 3/4" meter is 1-1/2 living units so that base rate would be $10.50 for the first 4,500 gallon, the next 9,000 gallons would be at $1.31. The net effect of this is to assure that the blocks of water are uniformly charged for. But as you increase in your blocks of consumption, you are paying a higher rate. The average customer usage today is 6,500 gallons, persons overall bill with the proposed water and sewer increases will be an 8.45% increase over the total The bill today would be $28.98; and under the new would be $30.73. that rate bill. rates, GUADCO MUD is a wholesale customer and we started out with a decreasing water rate, but the days of cheap water are gone. We renegotiated the contract several years ago and put them on a flat rate of $1.11 per 1000 gallons. There are 801 water customers up there and we propose putting them through the base rate of 801 and them treating them like in blocks of what that 801 customers would produce in a living unit equivalent. That basically puts the first 3000 by 801 produces 2,043,000 gallons at $1.11, the next block of 2,043,000 gallons would be at $1.31 and the next would be $1.51, etc. This would be a 21.4% increase. :~~~- ;j We currently charge outside city limit customers 200% of the inside city limits rates. The Texas Water Commission says you should relate charges to costs of service. A lot of cities charge 1-1/2 times for outside city customers. We may get challenged one of these days but our outside city rate is still cheaper than Green Valley and GUADCO 1 & 2. Additionally, we are not projecting the new rate would be effective until 90 days into the fiscal year. By contract, we could not charge GUADCO until we give them 90 days notice, and it would be unfair to charge our own citizens until we start charging them. If we place this into effect and use the 200% outside city limits rate, three months at the old rate and nine months at the new rate, it would produce in income of water of $1,030,909, which is $174,702 more than the old rate would have produced. Annualized, that would bring in $232,000 a year additional income. It makes no sense to place a sewer rate in place and then two months later place a water rate into effect. This is something the Council will have to determine. Mayor Sawyer commented that Mr. Sweatt had given a very complete overview and he would ask that he brief Mrs. Marsh on this prior to the next meeting. #12 ADJOURNMENT: Mr. adjourned at 8:24 p.m. Mr. which carried unanimously. Potempa moved the meeting be Baldwin seconded the motion, ATTEST: ~CM//Y'/ ja-0~ ~~r, City of SChert~Texas ___r=1!~ /~~ CitY~CretarY, CitY-Qf Schertz /'