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08-06-2021 Special Budget WorkshopMINUTES REGULAR MEETING August 6, 2021 A Special Budget Workshop Meeting was held by the Schertz City Council of the City of Schertz, Texas, on August 6, 2021 at 8:30 a.m. in the Hal Baldwin Municipal Complex Council Chambers, 1400 Schertz Parkway, Building #4, Schertz, Texas. The following members present to -wit: Present: Mayor Ralph Gutierrez; Councilmember Mark Davis; Councilmember Rosemary Scott; Councilmember Jill Whittaker; Councilmember David Scagliola; Councilmember Allison Heyward; Councilmember Tim Brown Absent: Mayor Pro -Tem Michael Dahle City Staff. City Manager Dr. Mark Browne; Assistant City Manager Brian James; Assistant City Manager Charles Kelm; City Attorney Daniel Santee; City Secretary Brenda Dennis; Assistant to the City Manager Sarah Gonzalez; Economic Development Director Adrian Perez; EMS Director Jason Mabbitt; City Engineer Kathy Woodlee; Public Affairs Director Linda Klepper; Human Resource Manager Lindsey Cox; Director of Parks, Recreation & Community Development Lauren Shrum; Assistant Public Works Director Scott McCleloland; Finance Director James Walters; Public Works Director Suzanne Williams Attendees: Glen Outlaw, Judith Williams, Richard Dziewit, Michele Tereletsky Call to Order (General Comments) Mayor Gutierrez called the Budget Workshop to order at 8:30 a.m. WELCOME /OVERVIEW Mayor Gutierrez recognized City Manager Dr. Mark Browne who began the meeting with a COVID update. DISCUSSION AND ACTION ITEMS Budget Prioritization Process - + Discussion and direction for prioritizing the FY2021 -22 budget, including but not limited to funding all programs needed to accomplish the City Mission and taking into consideration factors such as population growth, tax base development, large time 1 sensitive infrastructure projects, right of way issues, staffing levels and structure, American Rescue Plan funding priorities and process, and prioritizing expanded programs that may be required in the future. (M. Browne/Executive Team) City Manager Dr. Mark Browne provided the following retreat overview topics: • ARP Update • Workforce Discussion • Parks Events Overview • FY 21/22 Budget Highlights & Discussion • Cut Line Discussion ARP Update • Based on 6/17/21 Council Workshop and the Final InterimTreasury Rule released 6/23/21, staff has made adjustments to proposal • Finance has confirmed application to TDEM for funds *Current status —waiting on delivery of funds • Receiving more money than we anticipated • Was: $9,166,792.19 • Now: $10,417,416.86 • Approx. $625K more per tranche *Recommend allocating this to water /sewer projects (FM 1518 Utility Relocates project) • ARP funds not factored into FY 21/22 budget — pending Council approval of Staff s recommendation Staff will bring Resolution to Council • Revised Proposal for Spending Staffs spending proposal for 1st tranche - $5.21 million Category 1: Support public health expenditures § Was: $423,250 § Now: $303,000 Category 2: Address negative economic impacts caused by the public health emergency § Was: $1.4 million § Now: No Change Category 3: Replace lost public sector revenue § Was: $63,500 § Now: $525,000 (up to 1.4 million) Category 4: Provide premium pay for essential workers § Was: $500,000 § Now: No Change 2 Category 5: Invest in water, sewer, and broadband infrastructure § Was: $2.2 million Now: $2.48 million Combined proposed amount: $5,208,000 Second Tranche- $5.21 million • Use entire amount in category 5 — investments in water, sewer, and broadband infrastructure • Recent approval of Water /Wastewater rate factors the commitment of this money to this category • Example projects • FM 1518 Utility Relocates (625K - "new" ARP money) • Greytown to Pfeil Loop Line Construction ($664K) • Aviation Heights Phase 8 Waterline replacements ($550K) • SCADA replacement Phases 1,2,3 ($189K total)Replace I35 Elevated Storage Tank piping ($400K) • Greenshire Drive AC Waterline Design & Construction ($3.3M) • Ware- Seguin Water Tank ($350K) • Wastewater Town Creek Phase IV Route Study/Design/Easement ($900K) Tentative Framework for Grant Program • Communication of program • Application Process • Application Review • Establish Review Committee • Awarding of funds Workforce Discussion Overview • High Turnover Departments • Potential COVID Impacts • Benchmark Data • Minimum Wage Analysis Discussion and recommendation • Accelerate Class & Comp Discussion and recommendation Parks Events Overview Brief review of 4 major City events • Jubilee • Trunk or Treat • Holidazzle • New Year's Eve Masquerade • Parks Schedule for FY 2021/22 & Labor Hour discussion 3 • Comments/Direction from Council FY21/22 Proposed Budget • FY21/22 Budget Highlights • Expanded Programs Proposed to Fund • Incode Replacement • Increase Minimum Wage - $15/hour • New Personnel • Contracted Building/Facilities Cleaning • Fleet programs • Animal Care HVAC • Additional SPAM Funding FY2021 -22 Budget General Fund Proposed Budget $39,314,984 • Increase of $1,012,404 or 2.7 %, from FY 2020 -21 Adopted Budget, not including infrastructure funding -@, Non Personnel Budgets decreased 2.3% due to the falloff of business incentive payments and completion of the public safety restroom remodel * Personnel Budgets increase 5.4% to act on the Class & Comp Study, Merit, insurance, ECI, and add 3 positions Sales Tax - Franchise - Permit - Fees - Personnel - Operating - Capital Outlay Information Update General Fund * Proposed Budget assumes a 26% Fund Balance requirement * Choices made in this budget will reduce the fund balance to 26% over the next 5 years • Long Term Debt Model • For I &S Fund - 5 Year Summary + Purpose:To avoid large tax increases in the future • Design: • Model is long term in nature • Includes all current debt obligations • Takes into account the growth of the tax base • 2021 Property Values Tax Rate 4 No -New Revenue: Voter Approval Rate: Current: Proposed Max: The tax rate which will generate the same revenue Tor the city Trom property on the previous year's tax roll. The rate if exceeded triggers an automatic eiecuon on the tax rate. The rate currently adopted by the City. The maximum rate set at which the final aaoatea rate cannot exceea. No New Revenue: Voter Approval: Current: Proposed Max: $0.5146 $0.5242 $0.5121 $0.5121 Imposed budget assumes this rate $0.01 is equal to $406,000 revenue or $26.25 on the average home Target Tag Rate Tax Current Proposed Rate Maximum M &O $0.3470 $0.3517 I&S $0.1651 $0.1604 Total $0.5121 $0.5121 FY2021 -22 City Tax Rate For day to day operations To pay the City's debt • At $0.5146 No New Revenue Rate Existing Residents Average City Tax Bill 2020 Tax Bill = $1,252 Avg Home Value $244,500 2021 Tax Bill = $1,351 Avg Home Value $262,500 Increase = $ 99* *This represents the increase of the tax bill on the average taxable home value, including new construction . At Current Rate $0.5121 Existing Residents Average City Tax Bill 2020 Tax Bill = $1,252 Avg Home Value $244,500 k 2021 Tax Bill = $1,344 Avg Home Value $262,500 Increase = $ 92* (decrease of $6.56) ** *This represents the increase of the tax bill on the average taxable home value, including new construction * *This represents the increase of the tax bill on the average existing home • At $0.5242 Voter Approval Rate Existing Residents Average City Tax Bill 2020 Tax Bill = $1,252 Avg Home Value $244,500 2021 Tax Bill = $1,376 Avg Home Value $262,500 Increase = $ 124* (increase of $25 * *) *This represents the increase of the tax bill on the average taxable home value, including new construction "This represents the increase of the tax bill on the average existing home Historic Tax Rates - M &O & I &S Discussion/Overview Cut Line Discussion Personnel Funded Now (Enterprise Funds or Other Items) Programmed with Water & Sewer Rate Increase Study • Programs Funded Now (Enterprise Funds or other Items) 'Move to Phase 2 of Access Control Project —WEI be completed in 2020 -21 Fiscal Yea- Proposed Programs/Personnel Funded at Current Rate: $051.21 6 ice Piexiglass for Bookin . Area 10,250.00 et Generator for NACO \hater Tower 166,677,00 et I Generator for Ray Corbett Water Tower 108,179.00 et et Generator for Mornin Drive Water Toner BvAing 27 Fuel Storage 150,ODO.Co 85,000.00 'Move to Phase 2 of Access Control Project —WEI be completed in 2020 -21 Fiscal Yea- Proposed Programs/Personnel Funded at Current Rate: $051.21 6 Personnel lHumanResources Volunteer Coordinator' $ 70,000.00 Personnel Police Patrol Officer Is 144,806.00 Personnel IPolice Evidence Technician Is 71,984.00 L Total. I S 1,030,047.00 'Ce,snc r+rio—Yfrom „era- hutf.Fe°. retreat • Programs/Personnel Funded at No New Revenue Rate: $0.5146 • Could fund additional $118K in recurring costs (recommend personnel in green) Personnel r Volunteer Coordinator` $ 70,000.00 Program Human Resources Increase Minimum Wage ($15 /hour)` $ 117,580.00 Program Finance Incode Replacement $ 500,000.00 Program Facilities Services Cleanin of Public Safety BoUngs $ 47,000.00 Program Fleet Heavy Duty Tire Machine $ 41,000.00 Program Fleet GPS Tagging for Vehicles (Pilot Pr ram) $ 10,000.00 Program I Parks Restroom Cleanin Service $ 27,675.00 SubTotal:l $ 743,255.00 L Total. I S 1,030,047.00 'Ce,snc r+rio—Yfrom „era- hutf.Fe°. retreat • Programs/Personnel Funded at No New Revenue Rate: $0.5146 • Could fund additional $118K in recurring costs (recommend personnel in green) Personnel Human Resources Volunteer Coordinator` $ 70,000.00 'Personnel Police Patrol Officer $ 144,608.03 Personnel Police Evidence Technician $ 71,984.00 Personnel Facilities Services Plumber Position" S 62,840.00 Personnel 1 IT Heavy Duty Tire Machine 1$ 50,000.00 (Program SubTotal: $ 399,632.00 Total: $ 1,142,887.00 'Council priority from pre-budget retreat "The requested Parks Irrigation Technician mould be covered by the Plumber Position Cut Line Discussion at Voter Approval Rate - $0.5242 Could fund additional 500K recurring personnel (in yellow) 7 ;Program r_ Human Resources Increase Mfnimum Wage ($15 /hour) $ 117,580.00 `P ram Finance encode Replacement $ 500,000.00 !Program Facilities Services Cleaning of Public Safety Buildings $ 47,000.00 ;Program Fleet Heavy Duty Tire Machine $ 41,000.00 (Program Fleet I GPS Taegine for Vehicles (Pilot Pre ram) 1 $ 10,000.011 `Pro ram Parks Restroom Cleaning Service Is 27,675.10 SubTotai: $ 743,255.00 Total: $ 1,142,887.00 'Council priority from pre-budget retreat "The requested Parks Irrigation Technician mould be covered by the Plumber Position Cut Line Discussion at Voter Approval Rate - $0.5242 Could fund additional 500K recurring personnel (in yellow) 7 Personnel r_ lNuman _ Resources _ Vo!unteerCoordinator• $ 70,000.07 Personnel Police Patrol Officer $ 144,808.00 Personnel .Police Evidence Techrician $ 71,984.00 net I Facilities Services P!W"e, Pov to -: $ 62.3 onnet 11T C 1 ,1.5a. cz s Te. S 50.= 00 Personnel Fire GPS Ta i for Vehicles (Pilot Pr rain) $ 10,000.07 Personnel Parks NO, Mam,enance Tech $ 27,675.00 Personnel Inspections Fn ineering Police Parks Parks Parks PiansEzaminar $ 550e $ 53,570.00 Personnel Adm- nistrative Assistant Personnel Records specialist S 38,495.00 Personnel Palk Maintenance Tech $ 39,935.00 Personnel Trail Development Coordinator $ 62,579.00 Personnel Recreation CoordLriatar PT/Seasonal Park Raniier $ 62,579.00 $ 26.000.90 Personnel _ Parks SubTotai:j $ 880,010.00 Totals $ 1,623,265.00 *Council priority from pre- budget retreat "The requested Parks Irrigation Technician would be covered by the Plumber Position Cut Line Discussion at Voter Approval Rate - $0.5242 OR Fund additional $500,000 in one -time programs (in yellow) Personnel Human Resources Vol anteer Coordinator" $ 70,00^.00 Pnograim Human Resources Increase Minimum Wale ($15 /hour)' $ 117,580.00 Program Finance Incode Replacement 5 500,009.00 Program Facilities Services Cleanir of Public Safety BaWin s $ 47,0.3.00 Program Fleet Heavy Duty Tire Machine $ 41,000.00 Tam 'Fleet GPS Ta i for Vehicles (Pilot Pr rain) $ 10,000.07 Program Parks Restroom Cieanin g Service $ 27,675.00 Library Sub-iota: $ 743,255.DG Totals $ 1,623,265.00 *Council priority from pre- budget retreat "The requested Parks Irrigation Technician would be covered by the Plumber Position Cut Line Discussion at Voter Approval Rate - $0.5242 OR Fund additional $500,000 in one -time programs (in yellow) Personnel Human Resources Vol anteer Coordinator" $ 70,00^.00 Personnel Police Patrol CiF.cer $ 144.808.00 Personnel I Police Evidence Techn ?C.an $ 71,984.00 Personnel Fatifnies Services Plwr�er' ** 8 13G _ Pro am Pmgmm Fleet GPS Laging for Vehicles 1pdotP ram) Restroom Cleanint Service raa nv%lncen9ve Program Add .nonai4 VAC Maintenance funds -- _ Parks SabTotal: S 399.632.M Program (Human Resources Increase M;nimum W e i515/houri• S '117,590.0C Pro ram Finance Incode Replacement 5 500,3 7.oC Pro ram Facilities Services Cleaning of Public Safety Buildings $ 47,000.00 Pro ram Fleet Heavy Duty Tire Machine $ 41,0,...00 _ Pro am Pmgmm Fleet GPS Laging for Vehicles 1pdotP ram) Restroom Cleanint Service raa nv%lncen9ve Program Add .nonai4 VAC Maintenance funds $ 1e,00c.00 $ 27,675.00 $ _ 94.000.00 $ 76,00040 _ Parks Program ProWam _ Numan Resources - s a Facilities Services Program Pollee 15; arch Console Rep acements 120,500.00 Program Library HmSfcit Prp rim $ 2,900.00 Program Police _ Program Set- Program Streets Program Parks Reolme Cat $ :O,TC.q W OT for Life Safely 1moe. tons S 'S 40,000.00 $ 3.30.000.00 5 1,251,455'.08 Accelerate Sireet Light ReP!atonir, Tra+I fund �V low rW - reaaex!ed 50_K) SiaTata: Total: $ 1,651,08TA:1 *Council priority from pre- budget retreat * *The requested Parks Irrigation Technicial would be covered by the Plumber Position Cut Line Discussion - Remaining Unfunded Requests 8 Total:I $ 937,464.00 During the above discussion sections changes were made that the Volunteer Coordinator will be moved below the cut line and Plumber position moved up, allocating $1 million to the business grant program instead of $1.4, updating the minimum wage to $15.00, Contracted Building/Facilities cleaning, fleet programs, Animal Care HVAC, additional SPAM funding and Incode replacement. ADJOURNMENT Mayor Gutierrez adjourned the workshop at 12:55 p.m. r ; � alph utierrez, Mayor i ATTEST: Brenda Dennis, City Secretary 9 rary Administrative Assistant $ 51,730.00 TProgramParks rary Pi Programming Speciakst $ 17,700.00 TPersonne Supervisor $ 85,D00.00 GIS Speciahst /Database Analyst $ 55,060.00 Program ineeri Inspector I $ 86,000.00 Program $ubTotai: S 289,430 .00 Total:I $ 937,464.00 During the above discussion sections changes were made that the Volunteer Coordinator will be moved below the cut line and Plumber position moved up, allocating $1 million to the business grant program instead of $1.4, updating the minimum wage to $15.00, Contracted Building/Facilities cleaning, fleet programs, Animal Care HVAC, additional SPAM funding and Incode replacement. ADJOURNMENT Mayor Gutierrez adjourned the workshop at 12:55 p.m. r ; � alph utierrez, Mayor i ATTEST: Brenda Dennis, City Secretary 9 Additional Mowin Services $ 50,000.00 TProgramParks Additional Library Materials $ 31,000.00 Nehvork Mana ement Systems Upgrade $ 24,750.00 an Resources internship Program $ 19,270.00 Program Purchasing Asset Tracking System S 10,000.00 Program Finance Court Office Furniture $ 15,000.00 Program Finance Remove Court Officer Fundi2E $ 18,000.00 Program Facilities Services Campus Maintenance Supplies $ 70,060.00 Program Fleet Generator for City Hail /Community Center $ 116,134.00 Program Fleet Generator for Emergency Services 5 162,957.00 Program Fleet Generator for Civic Center 5 130,923.00 SubTotal:1 $ 648,034.00 Total:I $ 937,464.00 During the above discussion sections changes were made that the Volunteer Coordinator will be moved below the cut line and Plumber position moved up, allocating $1 million to the business grant program instead of $1.4, updating the minimum wage to $15.00, Contracted Building/Facilities cleaning, fleet programs, Animal Care HVAC, additional SPAM funding and Incode replacement. ADJOURNMENT Mayor Gutierrez adjourned the workshop at 12:55 p.m. r ; � alph utierrez, Mayor i ATTEST: Brenda Dennis, City Secretary 9