08-04-2023 Minutes Budget MeeetingMINUTES
REGULAR MEETING
August 4, 2023
A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on
August 4, 2023, 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 Allison Heyward; Councilmember Mark
Davis; Councilmember Michelle Watson; Councilmember Jill Whittaker;
Councilmember Michael Dahle; Mayor Pro-Tem Tim Brown
Absent: Councilmember David Scagliola
Staff City Manager Steve Williams; Deputy City Manager Brian James; Assistant City
present: Manager Sarah Gonzalez; City Attorney Daniel Santee; City Secretary Sheila
Edmondson; Chief of Fire Dept. Greg Rodgers; EMS Director Jason Mabbitt; Asst.
Police Chief Daniel Roman; Asst. Police Chief Manny Casas; Finance Director James
Walters; Planning/Inspection Director Lesa Wood; Engineering Director Kathy
Woodlee; I.T. Director Jack Bluebird; Public Works Director Larry Busch; Facilities
Director Dawniecia Hardin-Trussell
Call to Order
Hearing of the Residents
This time is set aside for any person who wishes to address the City Council. Each person
should fill out the speaker's register prior to the meeting. Presentations should be limited to no
more than 3 minutes
Mayor Gutierrez welcomed the residents and stated there would be an opportunity to speak
after the Budget Information was presented.
WELCOME AND OVERVIEW
Mayor Ralph Gutierrez welcomed everyone to the Budget and Tax Rate Workshop.
City Manager Steve Williams welcomed everyone and went over the Retreat Overview:
REVIEW OVERVIEW
• Budget Timeline
• Legislative Updates
• Tax Rate Discussion
• FY 2023-24 Budget Development & Highlights
• Cut Line Discussion
• City Holiday Discussion
• Action Item — Set Prelim Tax Rate (and accept rates)
• CIP & Project Updates
August 4, 2023
• Accept the state defined tax rates
• Vote to set the Preliminary Tax Rate
August 15, 2023
• 1 st Public Hearing on Budget & Tax Rate
• 1 st Vote on Budget & Adoption
• 1 st Vote on Tax Rate & Adoption
• Approve Fee Schedule
September 5, 2023
• 2nd Public Hearing on Budget & Tax Rate
• 2nd Vote on Budget & Adoption
• Ratify Tax Increase in Budget
• 2nd Vote on Tax Rate & Adoption
October 1, 2023-New budget in effect
City Manager went through the budget timeline and explained the 1 st and 2nd Public Hearings
and approvals process.
LEGISLATIVE UPDATE: Presented by Director of Public Affairs Linda Klepper
Key Bills
• H.B. 1613 — DVHS Bill - Did NOT pass -This bill would have provided state funding to
all cities impacted up to a percentage of revenue loss.
• Supported by our representatives
• H.B. 2127 — Preemption Bill -Unclear on the impact. San Antonio joined a lawsuit since
this bill violates the Texas Constitution. We will wait to see what the courts decide.
• Unknown impact/headed to the courts
• H.B. 3 — School Safety Measures - The bill passed and requires that every school have an
armed security on each campus.
Other Bills
• Annexation, Engineering Fees, TikTok Ban, Broadband
Special Sessions
• Summer 2023
• School Property Tax Relief Plan (goes to voters in Nov. election) If passes, residents
will see a reduction in school taxes.
• Future special session is anticipated to begin this Fall- Speculation that school vouchers
and teacher's pay raise could be discussed.
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• Next session
• Land Use
SCHOOL SAFETY/SECURITY-Assistant Police Chief Daniel Roman presented HB3.
• On June 14, 2023, TX Legislation passed HB3
• This bill mandates armed security at school campuses but doesn't provide the funding
• SCUCISD has asked for 5 additional officers for the 2023-24 school year
• Schertz PD currently provides 6 officers
• Off -duty officers will be used in the interim to fulfill the mandate (funded by SCUCISD)
• Projected timeline to staff with full-time police officers is school year 2024-25
TAX RATE DISCUSSION -Finance Director James Walters presented the following
presentation.
2023 Property Values
• 2023 Equivalent Taxable Value $5,326,877,888
• 2023 New Taxable Development +$113,763,340
• 2023 Adjusted Taxable Value $5,440,641,228
• Difference Between Adjusted Taxable Values $551,629,839
DVHS-Disabled Veteran Homestead
+DVHS �20202021
L__.....�....._...._... ., ,� _._ _........__ . __ ...._..,�
.. _.,......e-.,_. ..............._._....,..._..k
20222023
_.�....__...,., ....
,..e. .�,.e.--��-
TOTAL EXEMPTION
$436,800,000
$550,500,000 !
-____._F
$694,200,000
$834,200,000'
_.__._. ,20 .0 -1
INCREASE %
22.0%
1126.1
% _ =
20.2%
INCREASE $
1$78,000,000
$113,700,000
$143,700,000 '
$140,000,000
TAX RATE w/o DVHS
$O.4548R s_ N
$0.4428 4
$0.4234
$0.4126 j
• 19% of Homesteads have a DVHS Exemption for 2023
•51% of Homesteads have some sort of DV Exemption for 2023
Approximately 1 out of 2 have some sort of a DVHS exemption. The exemption works
out to be approx 3-4 million less revenue to the city.
Finance Director went over the Tax Rate Definitions
No New Revenue The tax rate which will generate the same revenue for the city from property
on the previous year's tax roll.
Voter Approval Rate The rate if exceeded triggers an automatic election on the tax rate.
Current The rate currently adopted by the City.
Proposed Tax RateThe maximum rate set at which the final adopted rate cannot exceed.
Current
$0.4950
No New Revenue
$0.4554
Voter Approval
$0.4872
Voter Approval — Unused Increment
$0.0000
Proposed Tax Rate
$0.4872
K
$0.01 is equal to $544,000 revenue or $32.46 on the average
home
Taxes are going down. Staff recommends the Voter Approval Tax Rate of $0.4872.
TARGET TAX RATE
TAX CURRENT PROPOSED TAX RATE
RATE
M&O $0.3470 $0.3324 For day-to-day operations
I&S $0.1480 $0.1548 To pay the City's debt
TOTAL $0.4950 $0.4872
FY 2023-24 CITY TAX RATE
Tax Rate Name
No New Revenue
Voter Approval
Proposed
Current
School Tax Bill Change
Tax Rate per $100 Est. Tax Bill
$0.4554
$1,478.22
$0.4872
$1,582.00
$0.4872
$1,582.00
$0.4950
$1,606.89
Bill Increase % Increase
$103.78 7.0%
$103.78 7.0%
$128.67 8.7%
-$850.00
•$103.79 is about $8.65 on the monthly escrow
-Tax bills are based on average taxable value of homes for 2023 of $324,600
-Estimated Tax Bills and Bill Increases are annual amounts
1. Budget Prioritization Process
• Discussion and direction for prioritizing the FY2023-24 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 sensitive infrastructure projects, right of way issues, staffing levels and
structure, school safety, Schertz Magazine and magazine printing costs, and
prioritizing expanded programs that may be required in the
future. (S.Williams/Executive Team)
City Manager Steve Williams presented the following FY 2023-2024 Budget
Established 5 Goals from the Pre -Budget Workshop Discussion
•Goal 1: Staff Compensation
•Goal 2 : Infrastructure
•Goal 3: Consolidated CIP Document
•Goal 4: Increase Staffing Levels
•Goal 5: New/Remodeled Facilities
FY 2023-2024 Budget Highlights -Expanded Programs Proposed to Fund
-Wage Adjustments
-New Personnel
-Additional SPAM Funding
-Police Equipment
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-Additional Programs/Equipment
Wage Adjustments — All Funds
-ECI Adjustment (4.7%) effective Oct. 7, 2023 - $1,400,000
-Class & Comp. Adjustment — effective Dec. 30, 2023 - $2,600,000 ($1.9 million
in FY 2023-24)
-Primary focus on salaries; will also review benefits, supplemental pay and career
progression opportunities
-Cover Cost of Increases to Insurance Premiums - $344,700
New Personnel — General Fund
-Fire — 3 Firefighters (for Station 4) - $315,000
-Engineering — Administrative Assistant - $60,000
Additional SPAM Funding
-FY 23/24 base has $650,000
-Propose one-time Street Funding of $1 million
Police Equipment
-Purchase of in -car cameras, body worn cameras and TASERs (to replace all
current equipment)
-5-year phase -in - $550,000 per year
Additional Programs — General Fund
-Library - Library Materials - $15,000
-IT
•ArcGIS Indoor Maps Extension - $6,525
•Implementation of vSphere servers for Public Safety - $87,000
-Court - Court Security Plan funding - $16,450
Additional Equipment — General Fund
-Fleet
-Hydraulic Hose Crimper - $6,350
-Hose Reels for Bulk Fluid Delivery System - $23,400
-Facility Services
-Tablets - $12,000
-Multi-use Drop Deck Trailer - $19,000
-Fire
-Opticom system for intersection light system - $33,800
-Hurst Strong Arm Multi -purpose E Tool - $30,000
*Streets
-Pothole Truck - $80,000
-Laydown Machine - $140,000
EMS Fund
-Medic 5 — 2 EMT positions (overnight) - $106,300
-2 F/T positions to staff peak hours - $110,600
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Drainage Fund
• Zero Turn Mower - $24,000
Water & Sewer Fund
-Utility Billing
• Position: Lead Clerk- $58,000
• Automated Phone Payment System - $12,000
•Water/Wastewater
• Combination Vacuum Truck - $675,000
• Fire Hydrant and Valve Replacement Program (initial funding) - $50,000
General Fund Proposed Budget $49,927,113
•Increase of $4,810,888 or 10.7% from FY 2022-23 Adopted Budget,
including infrastructure funding
-Non-Personnel Budgets increased 9.6% due to police equipment, capital
replacement, TIRZ contribution, and additional road maintenance funds
-Personnel Budgets increased 11.3% for pay adjustments, insurance, ECI,
and 4 new positions
General Fund
• Proposed Budget meets the 26% Fund Balance requirement
• Utilize excess fund balance for street maintenance and repair over the next 5 years
• Discussion and direction for setting the preliminary maximum tax rate for fiscal
year 2024 and setting Public Hearing dates.(S.Williams/J.Walters)
What's Below the Line: Summary of Requested Budget, Funded Budget and the
Unfunded Budget
Assistant City Manager Sarah Gonzalez went over the requested budget items that did
not get funded in the FY2023-2024 Budget.
P'IRequested Funded �w Unfunded
General Fun_ d_ $8,093,000$5,144,500i $2,948,500
, ,
Drainage 292 900 �1076900I $217 . EMS $1,294,770 ,870
g_. 3. $ $68, 000 $224 900�
Water/Wastewater $1,714,0641$996,500�!� $717,564'�
Official City Holidays -Juneteenth Discussion
Assistant City Manager Sarah Gonzalez opened the discussion on recognizing the
Juneteenth Day as a City Holiday. It would cost the city approx, $35,000.00 in
salary. If Juneteenth falls on a Tuesday/Thursday, staff would get the
Monday/Friday off as well costing the city approx, $70,000.00. Several
surrounding cities have added it to their holiday schedule. Staff recommends
adding it to the Holiday Schedule without removing one of the floating holidays.
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The discussion brought up many good points. Adding the holiday to the list
without taking or switching it with a current holiday. Other cities, counties,
agencies, federal offices are closed that day, so no regular business could occur at
the city. Wanting to be a premier city, adding the holiday and giving this benefit
to our employees goes along with wanting to get compensation to the midpoint or
higher. Comments that were opposed to adding the holiday ranged from the
possibility of giving staff a two-day holiday if it falls on a Tuesday or Thursday
doubling the holiday cost for Juneteenth.
Discussion and Action Items
2. Action Item -Set Preliminary Tax Rate:
City Manager Steve Williams explained that the city is presenting the No New
Revenue Rate and Voter Approval rate that were calculated by our tax assessor
collector, and we are required to bring these forward for presentation. The Proposed Tax
Rate is the max tax rate that you will approve. The Voter Approval Rate and the
Proposed Tax Rate are the same.
TAX RATE
Current $0.4950
No New Revenue $0.4554
Voter Approval $0.4872
Proposed Tax Rate $0.4872
Resolution 23-R-75 - a Resolution by the City Council of the City of Schertz, TX
accepting the state defined tax rates and setting the preliminary 2023 tax rate.
Moved by Councilmember Michael Dahle, seconded by Councilmember Allison
Heyward
AYE: Councilmember Allison Heyward, Councilmember Mark Davis,
Councilmember Michelle Watson, Councilmember Jill Whittaker,
Councilmember Michael Dahle, Mayor Pro -Tern Tim Brown
Passed
CIP & Project Updates
The Directors and Supervisors from Public Works, Water/Wastewater Drainage, Facilities,
Streets and Parks went over their FY 2022-2023 Completed projects and Planned Projects.
Many of the planned projects did not make this year's budget and were right under the cut -line.
These projects will be considered in the future when funds are available. City Manager stated
the city is working on a multi -year plan for these projects and will bring the proposed plan
back to council.
City Manager Steve Williams thanked the Finance Director James Walters and the rest of the
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City Staff in bringing forwarded a good budget for FY2023-2024.
Mayor Gutierrez thanked the staff for bringing a good FY2023-2024 forward.
Adjournment
Mayor Gutierrez adjourned the meeting at 11:03 am.
,�Y61p"Q tierrez, Mayor
ATTEST:
4/1
Sheila Edmondson, City ecr'etaYy
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