03-25-2022 PreBudget MinutesMINUTES
SPECIAL MEETING
March 25, 2022
A Special Pre - Budget Meeting was held by the Schertz City Council of the City of Schertz, Texas, on March 25, 2022, at
9:00 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; Mayor Pro -Tem David Scagliola; Councilmember Mark Davis; City Council Place 2 -
Vacant; Councilmember Jill Whittaker; Councilmember Michael Dahle; Councilmember Tim Brown
Absent: Councilmember Allison Heyward
City City Manager Dr. Mark Browne; Assistant City Manager Brian James; Assistant City Manager Charles Kelm; City
Staff: Secretary Brenda Dennis; Assistant to the City Manager Sarah Gonzalez; EDC Director Adrian Perez; Finance
Director James Walters; Library Director Melissa Uhlhorn; City Engineer Kathy Woodlee; GIS Coordinator Tony
McFalls; Interim Police Chief Marc Bane; Assistant Fire Chief Greg Rodgers; Public Works Director Suzanne
Williams; Director of Planning & Community Development Lesa Wood; Public Affairs Director Linda Klepper; IT
Director Myles Clauser; Human Resources & Purchasing Director Jessica Kurz; EMS Director Jason Mabbitt; Parks,
Recreation & Community Services Director Lauren Shrum
Call to Order (General Comments)
Mayor Gutierrez called the Special Pre - Budget Retreat meeting to order at 9:00 a.m. Mayor Gutierrez provided his comments
on the importance of today's meeting.
Hearing of Residents
No one signed up to speak.
Discussion and Action Items
Pre - Budget Prioritization Process -
• Discussion and direction for building the FY 2022 -23 Budget, including but not limited to setting five -year goals for the
City and setting priorities for the FY 2022 -23 Budget. Funding all programs needed to accomplish the City Mission,
taking into consideration factors such as population growth, tax base development, large time 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)
Mayor Gutierrez turned the meeting over to City Manager Dr. Mark Browne who stated that the focus is to get alignment on
short-term and long -term (5 year goals) with Staff and Council.
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Assistant City Manager Brian James provided the "Complete City Model" that was adopted a couple of years
ago and explained the model asking for Council for affirmation. Members of Council concurred to continue with the Complete
City Model.
Finance Director James Walters provided the following information and explained where we left off last year and what we have
this year to work with:
Expanded Programs Built into this Scenario for FY 2022 -23
New Personnel - $200,000
Small Equipment - $14,500
Large Equipment/Projects - $55,000
Allocating Excess Funds from Tax Rate Swap to SPAM Program - $400,000
Begin Station 94 Staffing - $300,000
ECI —1 %, then slow increments in the out years
Next was a break -out dot exercise with Council to place their numbered 1 through 4 dots on the flip chart of items listed below
for development of Key City 5 Year Goals, 1 being the highest and 4 least priority
• Increase Staffing Levels
• Renovate/Reconstruct Existing Facilities
• New Facilities (ex. Public Safety Building, Access Points, Fire Station, Parks)
• Compensation
• Infrastructure
• Technology
• CIP Planning and Document Development
• Expansion of existing services
• Funding for Retail Development and Recruiting
• Additional staff funding - staff training
Dot results for Council were:
1. Compensation
2. Infrastructure
3. Renovate/Reconstruct Existing Facilities
4. Staffing Levels
5. CIP Planning and Document Development
Staff and Council compared their lists (in no particular order)
STAFF
ew/Reconstruction Facilities
IP Planning/Document Development
of Facilities
CIP Planning)
Infrastructure
COUNCIL
Discussion occurred that Staff and Council would need to define goals further and bring back the information.
Mayor Gutierrez called for a break at 11:39 a.m. Mayor Gutierrez resumed the meeting at 12:19 p.m.
Next Discussion FY 2022 -2023 Budget Development Discussion:
• Discussion of challenges in level of funding - particularly for expanded programs
• New Personnel - $200,000
• Small Equipment - $14,500
• Large Equipment - $55,000
• Limitation of current system on funding recurring items
• Can we be more aggressive on revenue projections?
• What areas could we do this? What would that look like? How much money would that get us?
- Sales tax - increasing from 5% to 7% - would provide an additional $475,000 recurring revenue for FY22/23
• What are the drawbacks to doing this?
• Could we be more aggressive on expense projections?
What areas could we do this? What would that look like? How much money would that get us?
Across the line -item adjustments to match long -term trends - reduce department budgets by 2 %? Would provide
additional $750,000 recurring funding (could find 10 positions)
What are the drawbacks to doing this?
Council discussed and agreed to be more aggressive with sales tax projections and reducing unspent amounts across the board.
FY 2022 -2023 Budget Development Discussion
• Mid -Year Ready to go projects
• The idea is to have a project(s) ready to start on short notice, that can generally be completed during the fiscal year if
revenue and expense projections show additional funds are likely to be available.
• This is what we did with Elbe].
• Develop stretch goals for each area of complete city model at upcoming Policy Team meeting.
Council discussed and agreed to this. Action from staff is to develop stretch goals in each area - they will review at a
future Policy Team meeting.
5 -Year Forecast FY 2022 -23
......................... .......................................... ........... ......... ......
2023 2024 2025 2M 2027
FY f mnnsed FY Estniate FY Est--male FR' Estimate FY Estmate
P�graeil t`. Adt�Ons
'Additional Employee Compensat w S 232 825 38 . - $ 122,4013 59 -
$ 127,M 73 0 29 S
New Perss mel p $ 200.000 P $ 200 000 P
S 120.000 P S
a Snw- Egtrapment R S 14 600 R S 20 Ow R
S 20 0D) R S
Large E "uPrnent 0 S 55000 0 S 551100 0
5 45000 0 S
Acl on Game Study P
S 250 000 P S
Inhastruoiure Prl *cts
25a 0110
;lilt® StaVann i P $ 3001 OW P $ 300 000 P
S 300 M P S
: {:glr4rlt As"
street 1und:9 R $ 400 050
- --------- -- -- -- --------------
Expanded Programs Built into this Scenario for FY 2022 -23
New Personnel - $200,000
;AddilwrtalEmployee 6ompensalion
Small Equipment - $14,500
S 355,451.55
Large Equipment/Projects - $55,000
270,951 57 1 XA- $ 285,79042 20 $
Allocating Excess Funds from Tax Rate Swap to SPAM Program
- $400,000
ECI 1 %, then slow increments in the out years
S 20®.000
67 257 43 02&'5
$ 70 445 73 ;
120 DO0
P
$ 120 000 :
200M
R
S 200M :
45 01111
0
S 45,000 :
25a 0110
P
$ 250 OW
d !J
5 -Year Forecast FY 2022 -23 - more aggressive projections and reducing unspent amounts
ou...........o... ...�--- --------- ---- -3.. -: ---- .:....--------- ---ro... -- - -- - --- ------------
- - -2�1
..._ ..
FY Proposed
FY Estirrrate _
—
—
FY Estimate
---
FY Es;wwle
FY Esttmale --
— —
GttartgeslAai�tlt�5
;AddilwrtalEmployee 6ompensalion
; : S 698,478.34 1 F,,
S 355,451.55
'C°: S
270,951 57 1 XA- $ 285,79042 20 $
602,12828
New Petsanne-1
t' 4F s : P
S 20®.000
P
S
120,000
P
S 120 000
S
120000
.Small E4uipmrtt
R 14.500 R
S 20,001
R
S
20 ON
R
S 20.000
R S
201.000
:l.asge Equipment
0 55.000 0
S 55.000
0
S
45.000
0
S 45,000
0 5
45,000
:Act on Comp Study
P
S
250WD
P
S 250,1140
P S
250 -000
Infrastrueture Projects
:Fin Stan 4 5Wn9
Currant Ratio
:Stree9 Funding
P S 300,000 P S 3001000 P S 300,0>d0 P $ 309.000
R S 400,000
Expanded Programs Built into this Scenario for FY 2022 -23
New Personnel - $950,000
Small Equipment - $14,500
Large Equipment/Projects - $55,000
Allocating Excess Funds from Tax Rate Swap to SPAM Program - $400,000
Begin Station #4 Staffing - $300,000
ECI - 3% upfront, min of I% each other year
Mayor Gutierrez recessed the meeting at 12:19 p.m. for a lunch break. Mayor Gutierrez reconvened the meeting at 12:35
p.m.
Icebreaker #2 - Session openers Thumball Activity
Members of Council and Staff present participated in the activity - answering the question once the ball was pitched to
them where their thumb landed.
Establishing FY 2022 -2023 Budget Priorities - Group Exercise
Council Group - Mayor Gutierrez, Mayor Pro -Tem Scagliola, Councilmembers Davis, Whittaker, Dahle and Brown
Results:
1. Staffing - Public Works, Engineering, Planning and IT
2. Compensation
3. Facilities - Space - Improvement
4. EDC - Retail Recruitment
Budget Priority Breakout Council Day - Mixed Groups 1 through 3 Discussion
Settling on Budget Priorities Discussion
Are there any major disconnects in the budget priority lists?
If so, is it a function of information asymmetry or a different vision?
Over the next few months, the list will need to be merged.
FY 2022 -2023 Budget Development Discussion continued:
Discussion on ECI
Discussion on Class and Comp
Where do we want to be? (percentile wise)
How long do we want to take to get there?
Increase in Sales Tax Revenue
Decrease in Fee Revenues
Update on Personnel Budget to Actual
Department Year -end projections
Any "extra money? What is our bottom line at this moment?
Discussion regarding updated Plan
Debt Issuances
FM 1518
FS4
FM
3009
Public Safety 11111111111Infrastructure
M &O
I &STax Rate
$25
0.3645
0.3645
0.3645
0.3645
0.3745
0.3745
0.4
o 0.347
0.3517
0.3545
0.3545
0.35
$20
0.3
$15
0.25
0.2
0.1651
0.1604
0.1576
0.1576
0.1476
0.15 1 �>
0.1476
0.14E 6
0.13
0.1376
$10
0.15
0.1
$5
0.05
$0
0
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$1,000,000
New Annual Funding
Discussion 2030's Plan
30
0
g 25
20
Debt Issuances
Public Safety �Infrastructure M &O I&5 Tax Rate
0.402 0.402 0.412 0.422 0.422 0.422 0.422 0.45
0.382 0.392 0.392
0.4
0.35
0.3
0.25
15
1 tl6at Area
0.2
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0.1201 0.110 1
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0.15
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$3,000,000
nd ,
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New Annual nual F unding
Discussion regarding Complete City Model
How should the upcoming infrastructure bond allotment plan be distributed?
8 million in 2025
15 million in 2029
"Infrastructure" consists of items such as:
Parks (skate park, trail development, etc.)
Streets (reconstructions, new streets, etc.)
Facilities (new /remodeled offices, public safety, library branches, courtroom, etc.)
Drainage (new drainage channels)
Sales Taxes - Discussion
1,600,000
1,400,000
1,200,000
1,000,000
600,000
600,000
400,000
200,000
SALES TAX
By Collection Month
OCr NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
2121 -22 + 2020 -21 2019 -20 = -u- 20IB -19
FY 2022 -2023 Budget Development Discussion:
Projecting Increase in Sales Tax Revenue
Majority to go toward GBRA land purchase - $285,000
Remainder to cover lower fees collections, if they don't pick up (permits, rentals, investments, etc.)
Add anything in from Citizen Survey?
Revenue Decreases Discussion
As of March 31
1000000
900000
800000
700000
600000
500000
400000
300000
200000
100000
0
Court
Budget 2021
Personnel Budget to Actual Discussion
0
Rentals
2021 Actual ■ 2020 Actual
Investments
FY 2021 Budget Actual a/o Used
General Fund Personnel* $24,180,401 $12,309,533 51%
*Exactly halfway through the year, personnel has already used
up 51% of the budget before merit raises.
Fib 2020 Budget Actual Q/a Used
General Fund Personnel $22,209,294 $10,781,793 49%
FY 2021 Budget Performance Discussion
% Of Budget
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
March 2020 March 2021
Revenue Expenditures
Year End Projections Discussions
Budgeted Fund Balance Drawdown - $1,633,000
Year End Projected Drawdown - $1,575,000
$58,000 additional for FY 2021 -2022
FY 2022 -2023 Budget Development discussions:
CIP Projects
Water/Wastewater Funding
FY 19 -20: Projects funded from Impact fees and Operation funding
Water/Wastewater Master Plan ($500K)
Corbett Elevated Storage Tank ($2.7M)
FY 20 -21: Projects funded from reserves
Aviation Heights Waterline Replacements ($1.8M)
Design 16" Dedicated line from E Live Oak to IH35 ($500K)
FY 21 -22: Proposed Debt Issuance ($11M)
Crest Oak Sewer Line upsize ($1 M;
Construction 16° Dedicated line from E Live Oak to IH35 ($5M)
4 ($1.5 million reserves and $3.5 million in debt issuance)
• FM 1518 Utility Relocation (Construction)
n FY 22 -23: TBD Combination: Issue Debt, impact fees, EDC, reserves
• Lookout Sewer Line upsize
• Cibolo West Wastewater trunk main (route study)
Streets /SPAM Funding
FY 20 -21: bond funds and general fund ($210,000
recurring and $200;000 one time)
s Tr! County Reconstruction (EDC Funded $3,500,000 - $4,050,000 includes engineering)
a Schertz Parkway Concrete Repair Work ($150,000)
s 2018 SPAM Residential Chip Seal Upgrades ($200,OD0)
t 2020 Slurry Seal Projects ($2,500,000)
• PCI Study ($100,000)
s FM 3009/FM 78 Intersection Planning Study ($200,000)
• Elbel Road (pending additional funding - $1,400,000)
a Aviation Heights and Lindbergh Street Repair on hold pending policy diSGUssion ($1,900,000)
■ FY 21 -22: $210,000 recurring going forward if not more
bond funds (does not include impact fee funds for expanded capacity)
o Project(s) from CIP will be klentified based on final costs of 20200021 funds or needing to save
up funds over multiple years (Next up Schertz Parkway Woodland Oaks to IM-35 Preservation
overlay = estimated cost $800,000 — so short about $600,000)
Parks Funding
FY 20 -21: bond funds and general funds ($235:000 recurring and $150,000 one time
(for trails))
a Pedestrian Bike Zoutes and Bye Lanes Construction,
a Great Northern Tral Segment Design and Conswctim
a veteran's Memoria Plaza Landscape Renovation
a Thu er Parking Lot
a Crescent Bend Entry Improvements
s Ashley Park Piayscape and Pavillion
FY 21 -22: $235,000 Proposed Priorities (pending Parks Board Input)
a Dietz or Northern Trail Section
a DulemeverRestroom
a Creseml Bend Master Plan (to help deal with increase In Ashore)
a Soccer Complex Well and Pumps (moved up based on impact of freeze)
Major Projects
a Evaluate Wendy Swan Pool Conversion to Splash Pad
Pursue other• fur ding for Hilltop Park (Grs ^u)
s Consider funding adjusmera toi current facBties;Ree 33emerf2enlor Center:
Drainage Funding
r r
FY 19-20: $487,789; DESIGN: Colonies, Osage, Castle Hills, Desllt three ponds
FY 20-21: $1,472,870 Colonies, Osage, Castle Hills, Desllt thivae ponds; FS 92, Design: Amazon Dkch
FY 21 -22: $750,OM
Drainage Budget
Interfund from Drainage
Woodland Oaks
Drainage Fee Revenue
$1,200,000.00
Water /Wastewater $144,000.00
FY 22 -23: $65t ,a: DU
Permit Revenue
$
4,000.00
Eng/General $285,000.00
FM 78 (Se1Y's)
Interest
$
20,000.00
Fleet $ 99,000.00
Total Drainage Budget
$1,224,000.00
$528,000.00
FY 23-24: $550,000
Personnel
$
400,000.00
Whisper Branch/
Whisper Trace
Interfund
$
528,000.00
DebtService
$
122,000.00
FY 24.25: $500,000
Buffalo
Final Drainage Budget
$
174,000.00
Based on current budget, first drainage project will be In FY 24.25
`.."rainage Fee: $5.201LUE — FY 12-13 last increase
General Fund or Bonds may need to supplement
The FEMA ditch cost ( >$2 million) ^
Facilities Funding
FY 20 -21 Funded Programs
Civic Center Kitchen Remodels and Door
Public Safety Restroom Remodel
EMS HVAC Replacement
Building 1 Counters
FY 21 -22 Funded Programs
Community Center Kitchen remodel
!Building 10 Interior upfit for Parks
Vehicle Yard Security Gates
Deferred Preventative Maintenance - Expanded Program
Interior Finishes: $40,000
Flooring (carpets, vinyl, tile): $100,000
HVAC Replacement: $75,000
Personnel Update
New positions in 20/21, 12 added:
FY 10 -20 (June 2020) -- Added 8 positions
Patrol Officer Street Worker II (1)
Assistant Director of Public Works Park Maintenance Technician
Engineer Kennel Techs (2)
Street Worker 1 (2)
FY 20 -21 (October 2020) - Added 4 positions
Police Captain School Resource Officer (SRO)
Emergency Management Coordinator Senior Planner
Projected 4 -6 positions in 2022
2°O half of FY 21 — Future Staffing Discussion / Prioritization
4 General Fund / 2 Water
Projected 4 positions in 2023
Fire Fighters (4)
Adjournment
Mayor Gutierrez adjourned the special meeting at 3:30 p.m
ATTEST:
i
Brenda Dennis, City Secretary
i
Wh--GutiWez, Mayor