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ccswks 08-22-1989 276 ~ SPECIAL MEETING OF THE CITY COUNCIL AUGUST 22, 1989 The Schertz City Council convened in Special Session, Tuesday, August 22, 1989, 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; Earl Hartzog, Hal Baldwin, Mary Marsh and Ken Greenwald. Absent: Barbara Stanhope. Staff present were City Manager Kerry Sweatt and City Secretary June Krause. #1 PUBLIC HEARING: The Council to receive citizen comments on the proposed budget for fiscal year 1989-90. Mr. Sweatt advised that the budget was filed with the Mayor and Councilmembers, through the City Secretary, on July 31, 1989. The outline includes General Fund, Water/Waste Water and SAFES. We have made revision in the overall budget format this year. Basically we have proposed a change from a line item budget to a concentration of budget categories and budget cost centers. This includes a number of detail pages. We believe this will give us better management and have asked the Department Heads to be more speCifically in control. The General Fund budget is projected to require an increase in the effective tax rate of 7.07 cents, which would reflect the total tax rate of 32.83 cents per $100 valuation. The proposed increase in the General Fund activities includes continuation of police vehicle replacement, increased personnel in the Fire Department and Library Services; vehicle and eqUipment replacement in the Streets drainage and in the Park Departments, upgrading of recreational facil i ties in the Park program; and increasing the data processing in both Planning and Tax Departments. This budget continues the emphasis for economic development activities as was begun last year. The major thrust of increased actiVity in the Utility operations functions for the upcoming year includes substantial capital improvement projects, which include upgrading of the Deer Haven storage facil i ties; complete implementation of the water distribution booster pump project; begin the jOint City of Schertz/New Braunfel s Util i ty Joint Venture outfall facil i ties; relocation of lines at I-35 and FM 3009; acquisition of necessary safety equipment, construction of chlorine facil i ties and extension of lines within the distribution system. While no rate revisions are recommended does appear a consideration for water, charges, should be studied during the consideration in FY 1990-91. for this fiscal year, it as well as waste water 1989- 90 fiscal year for ( ,_ _ J 277 Projected ~xpenditures for the SAFES operation include continuation of replacement schedule funding and equipment upgrade funded from a combination of patient fees and payments by participating entities. As Council is aware, and many of the citizens, Council has approximatel y 70 manhours involved in the budget workshops and are going to continue the workshop after this hearing tonight. We believe this will reflect in a well-studied and well- documented budget. Mr. Sweatt then explained some overhead charts he had prepared. The first chart was a comparison of spending for the last several years. The second was a pie chart reflecting the 1989 proposed income. The third showed the General Fund 1989- 90 expenditures by cost center and the fourth showed the General Fund expenditures by department. Mr. Sweatt then showed and explained the organizational chart for the City of Schertz, which reflects 85 full-time employees and 41 part-time employees. We will have two new positions in this year's budget - one full-time fireman and one part-time library clerk. Then Mr. Sweatt continued by reviewing some of the recapitulation information. General Fund revenues of $2,311,815 and expenditures of $2,311,815; SAFES revenues of $250,776 and expenditures of $250,136i Water/Waste Water revenues of $1,928,832 and expenditures of $1,928,832. We have projected increases in a number of areas predicated on increase in businessi receipts from other Governmental entities for operation of fire services and library services. He the briefly went over expenditures by departments, for a grand total of $2,32l,360. Mayor Sawyer then said Council is ready to receive comments from citizens. 1. Mr. Leon Davis of 1017 Gettysburg said he wanted to go on record of thanking all of the Councilmembers for their hard work. He said he thought everything that is in the budget should be passed. He said there is one thing he would like to address, that is revenues from taxes. He said he thought they fall way short of what they should be. He said the Guadal upe County Appraisal District is robbing the citizens of Schertz and the Independent School District. From what he could gather, GCAD has cut sixty million dollars in taxes this year. He said he thought those taxes are cut from people who fall in the category of not needing that tax cut. They are land speculators. He said the seven cents from the City would not make much difference to him but the 15% from the school will hurt a little; but he still feels it is a good deal living in Schertz. He said he did not like to be on the receiving end of a bunch of land grabbers. He said if he could get to the bottom of this and find out the names, he would publicize it. He asked Council to get behind him and find out who those people are. He said there is no way this \ 278 \ ci ty should be begging for money. The population has increased two fold since 1980 and the revenues should be felt in this tax increase. 2. Chuck Sharpe - 1200 Antler Drive. He said first he would like to go on record that he is opposed to a 23% increase in taxes for the City of Schertz. He said it is easy to get confused when you talk about cents and percent of tax increase. The 7.07 cent represents about a 23% tax increase. He said we have a good city here, good services and low crime rate and have had low taxes. We have done this by demanding a lot from the city employees and they have produced a lot. This is certainly something that all the citizens can be proud of. He said he was not really too proud when he is looking at a 23% tax increase. He said he liked the new format the City Manager is using, it gives a little more consistency and in the long run will be very beneficial. He asked if there is a copy of the budget on file at the library with the departmental budgets. He said he did not see anything in the budget for right-of-way purchases. Mr. Sweatt said there is a minor amount set aside for Jack Hays improvements but until we have right-of-way maps, we are not aware of the value so we cannot set aside any specific amount. Mr. Sharpe then asked what amount is left over in the bonds that could be used for that purpose. Mr. Sweatt answered there are about $300,000 in Street Bonds if they are needed. Mr. Sharpe said one of the things the City needs to look at in the long range plan is more parks in the City. He then addressed Mr. Davis, by saying the Appraisal District provides both the City and School District with list of all tax payers. He has the list in the office in Seguin and he will be glad to show Mr. Davis anything he wants to see. 3. Jerry Graham of 409 Maple Drive said that he and his wife did not see anything in this budget on Disaster Preparedness or any contingency funds. He said he would not mind the tax rate going up another penny to make some contingency and Disaster Preparedness money available. There being no further citizens wishing to speak, Mayor Sawyer declared the public hearing closed at 7:30 p.m. #2 HEARING OF RESIDENTS: None Mr. Sweatt advised that the City has received notice from the Texas Department of Health who transmits a request for renewal for a permit for a Municipal Solid Waste site. The solid waste site is in Guadalupe County, Beck's Concrete Company application No. 1848. He showed a map giving the general outline of the area. Included in the permit is the description of the proposed ( 279 sanction of the eXisting Beck's Readymix Operations site. This is for a Class 2 landfill site. Because of the size and magnitude and particularly the relationship to Zuehl Road, one of the items of the application the permit calls for is for us to make our comments to the Texas Department of Heal th. We will advise that because of the magnitude of the project a public hearing should be held. We have reason to believe that a hearing will be called within a reasonable amount of time. Mayor Sawyer called a recess at 7:32 p.m. The Special Session was reconvened at 7:43 p.m. in the Conference Room. #3 BUDGET WORKSHOP: Mr. Sweat said he would first like to try to answer questions that were asked at the last meeting. 1. To clarify a statement regarding SAFES, there is $30,000 set aside in the proposed budget for capital items. That item will be placed in an escrow account as we do not intend to spend this money this year but put it with the approximate $26,000 currently in that account, for the replacement of a box or ambulance. We have just replaced one new box and if that works out satisfactor il y, that is possibl y what we will do beginning with the 1990-91 year. We will not be bUYing any during this 1989-90 budget year. 2. We did make an error. Last night as we reviewed Water and Sewer income, the solid waste account proposed income is in fact $36,000 not $3600 as shown. This will reflect an overall increase in the income by $32,000. We propose that we coupled this with the contingency account to bring that total to $57,400. 3. Council requested an update on the General Fund Park Bonds. There will be approximately $16,233 available in that account. We have completed the proposed projects under the 1987-88 year. 4. There were questions regarding some lots on which we have been mowing. Basically it appears that the City has $1571.93 against lots and portions of lots that are owned by a person out of state. There are more liens than taxes on our side but we also understand the other taxing entities have taxes and penalties against this property. We are gOing to sort it out and talk with our delinquent tax attorney and hopefully get back into the productive status. Council continued their review of the budget, picking up with the Water/Waste Water Department. Mr. Sweatt said the major area under Contractual Services is the electricity expense of $105,000 attributed primarily to pumping water. This al so incl udes some safety equipment. The Debt Service is the annual debt service to New Braunfels Utilities for our estimated share of oversizing for 1-35 project. In addition \ 280 ~ to this is $185,000 that is a direct City of Schertz cost attributable to extension of an outfall sewer line from our ETJ. New Braunfels has proposed this project be funded over a ten-year period at their bond rate. We estimate our ten-year amortization would be at approximately $40,000 per year. Capitol Outlay: reimbursing project, in the amount of $45,345, which is the relocation of existing utilities in the area of 135 and FM 3009. A project that has been delayed for years but we proposed painting the interior and exterior of the Naco well from the 1983 bond funds. Next painting the interior and exterior of the Deer Haven storage facility. We propose to purchase a service truck crane lift, in the amount of $41,060, from Water/Sewer construction resources. Proposed water line along FM 1103, in the amount of $37,990 from Capital Recovery funds; upqrading of the Dear Haven pressure system; cab for our 3-wheel scooter; a one-ton truck with service bed; portable qenerator and various other items for a total of $263,872 of capital items. Council then discussed the various line items in the Water/Waste Water budget. Mr. Sweatt then gave the breakdown for the Utility Billing portion of the Water /Waste Water budget as: Personnel Services $28,647; Supplies $10,800; Contractual $3925; Maintenance $2350 and Capital Outlay as $3874, for a total Billing budget of $50,596. Mr. Baldwin said Council had been given a very good briefing on the proposed budget. Council again discussed capital items that could be deferred to allow for some emergency contingency. Mr. Sweatt briefly went over those capital items that could be deferred for certain periods of time. Discussion followed concerning what items could be eliminated if there should be a roll-back petition. Mr. Sweatt explained that the current tax rate is .2576 cents, the effective rate would be .2672, the roll-back rate .2890 cents and we are proposing .3283 cents. He said the obvious cuts would be capital items. Mr. Hartzog provided a list of items that had been discussed at previous workshops that could possibly be cut from the budget. First he suggested increasing revenues by $9500 in Cable Franchise fees, $7500 Telecommunication fees and increase of $1,000 from SAFES in-kind services. After much discussion, Council agreed to cut election costs in the Council budget by $1,000; transfer $300 from Management memberships to Economic Development; in Non-Departmental cut longevity by one half, leaving $7,000, cut $1,095 in Animal Control for feline cages and discusses eliminating the shelving in the Library. ( I ~ 28J Mr. Baldwin suggested cuts for the roll back tax calculations as follows: Tax computer and line $9900, longevity $7,000, Election costs by $1,000, Parks vehicle $10,000, Fire vehicle $4500, Computer in Planning $4100, vehicle in Streets $18,350, Library shelving $3,440, and reduce all training and meeting line items by 15% for $61,000. #4 ADJOURNMENT: Mayor Sawyer declared the meeting to be adjourned at 10:48 p.m. ATTEST: \ \