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ccss 08-31-1989 288 '\ SPECIAL MEETING OF THE CITY COUNCIL AUGUST 31, 1989 The Schertz City Council convened in Special Session, Thursday, August 31, 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 R. Sweatt and City Secretary June Krause. #1 PUBLIC HEARING: Mayor Sawyer opened the public hearing and explained the Council would receive public comments on the proposed tax rate for fiscal year 1989-90. Mr. Sweatt advised that, as the agenda says, the only action on the agenda is to receive citizen comments and consider and take action to set a day and time for Council to vote on the tax rate. The budget was filed with the Council through the City Secretary on July 31st, and a 32.83 cent tax rate was proposed. After several workshops, considerable revisions were made to the budget and the most current recommendations include a propose tax rate of 31.83 cents per $100 value. This is based on our most current estimate of the total assessed value of $289,001,972. This is al so predicated on the collection ration of 94%. The budget on which this is drawn includes that amount of tax recommendation which total $864,320. Mr. Sweatt then showed some overhead slides, the first was a bar chart showing the total assessed value of the city from 1982 to the present. The second chart was a comparison of the tax rate and collections for a similar period of time. Mayor Sawyer then asked for citizen comments. 1. Michelle Tereletsky of 70S Marilyn Drive said this is the first time in seven years that she agrees with the Chuck Sharpe. He seems to forget that this new City Manager and Council had to start off with a deficit this year. He seems to forget that we had patrol cars that were rated as junk. He seems to forget a lot of things. She said that whether she liked any of the Councilor the City Manager or not has nothing to do with the tax increase. She said she could not see how they did as good a job as they have done with the mess they were in. She said she felt Mr. Sweatt should be commended for that. Ms. Tereletsky said Mr. Sweatt was the first City Manager to her knowledge that answered questions and would look you in the eye while answering. She said this is the first Council she has seen that asked questions about the budget. She said she did not like taxes going up any better than anyone else but she also did not like to see policemen driving vehicles that were falling apart, nor see fire people that has to do with her safety, working with equipment ( 289 that is not good. She said she supports what Council and appreciates what Council is doing. is doing 2. Doris Courtney - 4313 Spanish Oak - said she would also like to commend this Council and City Manager for a beautiful job on the budget. She said she did not like to see taxes raised either but to correct the situation that was created by the past regime, you have to do this. She said anyone who attacks anyone on this Council right now is either being childish or is getting senile. 3. Mrs. Lovonia vonada = 121 Henry Ford - said she woul d like to know how the City got into the deficit and how many times the taxes had been raised in the last ten years and why is there not more publ ished in the papers about the tax meetings. She said childish or senile or whatever, how are the people on fixed incomes - retirees - going to exist with all the taxes being raised. She said she lives here by choice and owns an additional house here too. She said she fel t we owe our senior citizen something besides raising their taxes every year. 4. Chuck Sharpe - 1200 Antler Drive - said he is opposed to the budget which has been presented. The previous Council walked a tight rope with very minor increases in taxes and maintained a good city. The crime rate for this city is one of the lowest in the area. The strategy that the previous regime used is certainly different than the one this Council is using. He said there is nothing wrong with providing good equipment and he felt Mr. Sweatt has done a good job but what he objects to is trying to change everything in one year. This is a burden that is being placed on the citizens that could more easily be spread out over a number of years and still accompl ish the goal s of upgrading some equipment. The numbers that were published in the papers he said represent a 28% increase on his home. He said that has been pared downi but the tax rate is still too high and he is against the rate being proposed. There being no further citizens wishing to speak, Mayor Sawyer closed the public hearing at 7: 12 p.m. #2 Consider and take action on announcing the date and time for the Council to vote on the tax rate for fiscal year 1989-90. Mr. Hartzog mOY_Elq for Counci I to set September 13, 1989, Regular City Council Meeting as the date and time for the Council to vote on the tax rate for 1989- 90. Mr. Baldwin seconded the motion, which carried with the following vote: AYES: Councilmembers Hartzog, Baldwin, Marsh and Greenwald. NAYS: None Mayor Sawyer said that one of the reasons really needed to raise taxes is that we do not have a savings account for the city or a contingency. When this budget is approved, if it is, we will have approximately $3,000 in contingency and that is not very \ 290 \ much. Contrary to what someone said, Council is not trying to get well in one year. At Mrs. Marsh I s request, Mr. Sweatt said he would attempt to answer some of the questions from a management standpoint. One- Is this the only tax increase that would be considered? He said no, as the community continues to have needs, he did not fee 1 that any Council would make a pledge that there would never be any increases in the rates. From the maintenance standpoint and from future bonded indebtedness, it will be necessary that at least tax increases be considered. One of the things this Council has undertaken is an Economic Development Task Force, which is charged primarily with seeking ways to expand the tax base. If the Task Force is successful, at the very least, we will be able to look at a more stable tax base. The rate has changed over the past years as the last chart attempted to indicate. The rate decreased in 1987 and there have been minor increases since that time. The rate proposed is less than the rate in 1986 before the lowering of the tax rate when the assessed valuation made a major change. Mr. Baldwin said one of the things he would like to point out is that he does not ever remember passing a deficit budgeti but the charts shows that in three separate years more was spent than taken in. Maybe because revenues were not as good as we anticipated or expenses were more. He said there are a couple of things in this budget that he fel t important, one is we are completing the plan started last year to replace the police cars - we will have eight new units on the road by the end of the year. One of the most important things in this budget in his estimation is that it has a $28,000 reduction in transfer in lieu of taxes. Anytime you transfer water and sewer funds to the general fund, you are hiding money from the tax payers - gouging them in an area where they can not protest. Mrs. Marsh said we have a new procedure, instigated by Mr. Sweatt, which is extraordinarily thorough, very well done and provides full accountability, department by department. The main thing is that what happened in the past is over with. Mr. Sweatt knows the steps and has already taken steps to get on the right track. We need to look to the future and get well. There was more that 40% cut from the budget requests sent by department heads to the City Manager. We need to look into the future and the requirements for the City if this City wants to grow. Some of the vehicles in this city are in such condition and are so old that they create a safety hazard and must be taken care of. Mrs. Vonada said she did not understand this budget but did want to know how long the Council was going to continue spending more than they took in, in fact how can you spend more than you have. She said Council needs to learn to live within their budqet. ( 29] Mayor Sawyer said that as of this year, they will only spend what they have. Mayor Sawyer said the question was asked about why some of the information was not published in the paper. He said we cannot control what goes in the paper. We can not get the papers to attend even half of our meetings. Mayor Sawyer referred to the question on senior citizens on fixed incomes. He said he was retired but not on a fixed income because his retirement is increased every two years. #3 ADJOURNMENT: Mr. Baldwin mov~g the meeting be adjourned at 7:34 p.m., Mr. Hartzog seconded the motion, which carried unanimously. ATTEST: k~~~- Mayor, City of SCh~z, Texas City '\