The URL can be used to link to this page

04-02-2021 Special Pre Budget Agenda with Backup MEETING AGENDA City Council PRE-BUDGET WORKSHOP April 2, 2021 FIRE STATION #3 TRAINING ROOM 11917 LOWER SEGUIN ROAD SCHERTZ, TEXAS 78154 CITY OF SCHERTZ CORE VALUES Do the right thing Do the best you can Treat others the way you want to be treated Work cooperatively as a team AGENDA FRIDAY, APRIL 2, 2021 at 8:30 A.M. Call to Order (General Comments) WELCOME/OVERVIEW Discussion and Action Items Pre-Budget prioritization process - Discussion and direction in preparation for pre-budget prioritization process and budget goal setting, including but not limited to key growth and service provision indicators such as population growth, tax base development, large time sensitive road projects/right-of-way issues, staffing levels and structure, and how to apply the information to assist in appropriate priority based decision-making. (M. Browne/Executive Team) Discussion regarding how to make the City of Schertz a destination location. (Mayor Gutierrez) ADJOURNMENT CERTIFICATION CERTIFICATION I, BRENDA DENNIS, CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS, DO HEREBY CERTIFY THAT THE ABOVE AGENDA WAS PREPARED AND POSTED ON THE OFFICIAL BULLETIN BOARDS ON THIS THE 26th DAY OF MARCH 2021 AT 1:30 P.M., WHICH IS A PLACE READILY ACCESSIBLE TO THE PUBLIC AT ALL TIMES AND THAT SAID NOTICE WAS POSTED IN ACCORDANCE WITH CHAPTER 551, TEXAS GOVERNMENT CODE. I CERTIFY THAT THE ATTACHED NOTICE AND AGENDA OF ITEMS TO BE CONSIDERED BY THE CITY COUNCIL WAS REMOVED BY ME FROM THE OFFICIAL BULLETIN BOARD ON _____DAY OF _______________, 2021. TITLE: ______________ This facility is accessible in accordance with the Americans with Disabilities Act. Handicapped parking spaces are available. If you require special assistance or have a request for sign interpretative services or other services, please call 210-619-1030. The City Council for the City of Schertz reserves the right to adjourn into closed session at any time during the course of this meeting to discuss any of the matters listed above, as authorized by the Texas Open Meetings Act. Closed Sessions Authorized: This agenda has been reviewed and approved by the City’s legal counsel and the presence of any subject in any Closed Session portion of the agenda constitutes a written interpretation of Texas Government Code Chapter 551 by legal counsel for the governmental body and constitutes an opinion by the attorney that the items discussed therein may be legally discussed in the closed portion of the meeting considering available opinions of a court of record and opinions of the Texas Attorney General known to the attorney. This provision has been added to this agenda with the intent to meet all elements necessary to satisfy Texas Government Code Chapter 551.144(c) and the meeting is conducted by all participants in reliance on this opinion. City Council Pre-Budget Retreat April 2, 2021 Retreat Overview Welcome/Introduction Activity FY 21-22 Budget Development Bonding Discussion Council Priorities for FY 21-22 Budget 2 Welcome/Introduction Penny Activity 3 FY 21-22 Budget Development 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 4 Sales Taxes 5 11.1% 10.5% 5.5%16.8% 15.8% -18.6% - 100,000 200,000 300,000 400,000 500,000 600,000 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP 4B SALES TAX By Collection Month 2020-21 2019-20 2018-19 2017-18 Revenue Decreases 0 100000 200000 300000 400000 500000 600000 700000 800000 900000 1000000 Court Rentals Investments As of March 31 Budget 2021 2021 Actual 2020 Actual 6 Personnel Budget to Actual FY 2021 Budget Actual % Used General Fund Personnel* $24,180,401 $12,309,533 51% 7 *Exactly halfway through the year, personnel has already used up 51% of the budget before merit raises. FY 2022 FY 2020 Budget Actual % Used General Fund Personnel $22,209,294 $10,781,793 49% FY 2021 Budget Performance 8 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% March 2020 March 2021 % Of Budget Revenue Expenditures Year End Projections Budgeted Fund Balance Drawdown - $1,633,000 Year End Projected Drawdown - $1,575,000 $58,000 additional for FY 2021-22 9 FY 21-22 Budget Development Expected stimulus package – American Rescue Plan ($9 million) Limited in where we can use this (A) Response to Public Health Emergency (COVID-19) assistance to households, small businesses, and nonprofits or aid to impacted industries such as tourism, travel, and hospitality (B) Response to essential workers during COVID-19 (Hazard Pay) (C) Cover reduction in revenues for government services (Tied to tax rate) (D) Investments in water, sewer, or broadband infrastructure Expected to receive funds in two tranches First tranche (equal to 50% of the allocation) within 60 days of enactment Second tranche (the remaining 50%) not earlier than one year after the first disbursement Funds available until December 31, 2024 10 FY 21-22 Budget Development Expected Winter Storm reimbursement Approximately $75K 11 FY 21-22 Budget Development CARES Money: How much do we have to spend? Right now,the City has $1 million available to spend for projects and programs The City could get another $360K from FEMA and CARES, leaving us with $1.36 million to spend 12 FY 21-22 Budget Development CARES Money: How much do we have to spend? $1.4 million received on CARES +$300,000 outstanding CARES reimbursement -$450,000 City payment for COVID supplies +$112,000 potential FEMA grant for COVID supplies Could leave us with $1.36 million in unanticipated funds available to spend 13 FY 21-22 Budget Development Expanded Programs built into the budget New Personnel - $200,000 Small Equipment - $20,000 Large Equipment/Projects - $500,000 (Incode/Animal Adoption Center AC Fix) Act of Class & Comp - $250,000 Total New Programs - $970,000 Prioritize 500K to 750K of expanded programs in case we have additional funds at year end 14 FY 21-22 Budget Development CIP Projects Water/Wastewater Streets Parks Drainage 15 Water/Wastewater CIP 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 ($1M) Construction 16” Dedicated line from E Live Oak to IH35 ($5M) ($1.5 million reserves and $3.5 million in debt issuance) FM 1518 Utility Relocation (Construction) FY 22-23: TBD Combination: Issue Debt, impact fees, EDC, reserves Lookout Sewer Line upsize Cibolo West Wastewater trunk main (route study) Streets SPAM CIP Funding FY 20-21: bond funds and general fund ($210,000 recurring and $200,000 one time) Tri County Reconstruction (EDC Funded $3,500,000 - $4,050,000 includes engineering) Schertz Parkway Concrete Repair Work ($150,000) 2018 SPAM Residential Chip Seal Upgrades ($200,000) 2020 Slurry Seal Projects ($2,500,000) PCI Study ($100,000) FM 3009/FM 78 Intersection Planning Study ($200,000) Elbel Road (pending additional funding - $1,400,000) Aviation Heights and Lindbergh Street Repair on hold pending policy discussion ($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) Project(s) from CIP will be identified based on final costs of 2020/2021 funds or needing to save up funds over multiple years (Next up Schertz Parkway Woodland Oaks to IH-35 Preservation Overlay = estimated cost $800,000 – so short about $600,000) 17 Parks CIP Funding FY 20-21: bond funds and general funds ($235,000 recurring and $150,000 one time (for trails)) Pedestrian Bike Routes and Bike Lanes Construction, Great Northern Trail Segment Design and Construction Veteran's Memoria Plaza Landscape Renovation Thulemeyer Parking Lot Crescent Bend Entry Improvements Ashley Park Playscape and Pavillion FY 21-22: $235,000 Proposed Priorities (pending Parks Board Input) Dietz or Northern Trail Section Thulemeyer Restroom Crescent Bend Master Plan (to help deal with increase in visitors) Soccer Complex Well and Pumps (moved up based on impact of freeze) Major Projects Evaluate Wendy Swan Pool Conversion to Splash Pad Pursue other funding for Hilltop Park (Grants) Consider funding adjustments for current facilities (Rec Center/Senior Center) 18 Drainage CIP Funding FY 19-20: $487,789; DESIGN: Colonies, Osage, Castle Hills, Desilt three ponds FY 20-21: $1,472,870 Colonies, Osage, Castle Hills, Desilt three ponds, FS #2, Design: Amazon Ditch ------------------------------------------------------------------------------------------------------------------------------------------ FY 21-22: $750,000 Woodland Oaks FY 22-23: $650,000 FM 78 (Sely’s) FY 23-24: $550,000 Whisper Branch/ Whisper Trace FY 24-25: $500,000 Buffalo Based on current budget, first drainage project will be in FY 24-25 Drainage Fee: $5.20/LUE – FY 12-13 last increase General Fund or Bonds may need to supplement The FEMA ditch cost (>$2 million) Drainage Fee Revenue 1,200,000.00$ Water/Wastewater 144,000.00$ Permit Revenue 4,000.00$ Eng/General 285,000.00$ Interest 20,000.00$ Fleet 99,000.00$ Total Drainage Budget 1,224,000.00$ 528,000.00$ Personnel 400,000.00$ Interfund 528,000.00$ Debt Service 122,000.00$ Final Drainage Budget 174,000.00$ Interfund from DrainageDrainage Budget Bonding Discussion Discussion was held at Strategic Planning Retreat Making the shift from bonding to recurring money in the General Fund Doing this means not having as much to spend while we make that shift 20 Debt Issuance Plan (lowers I&S) 0.347 0.3545 0.3545 0.3545 0.3645 0.3645 0.3645 0.3645 0.3745 0.3745 0.1651 0.1576 0.1576 0.1576 0.1476 0.1476 0.1476 0.1476 0.1376 0.1376 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 $0 $5 $10 $15 $20 $25 FY 2 0 2 0 - 2 1 FY 2 0 2 1 - 2 2 FY 2 0 2 2 - 2 3 FY 2 0 2 3 - 2 4 FY 2 0 2 4 - 2 5 FY 2 0 2 5 - 2 6 FY 2 0 2 6 - 2 7 FY 2 0 2 7 - 2 8 FY 2 0 2 8 - 2 9 FY 2 0 2 9 - 3 0 Mi l l i o n s Debt Issuances FM 1518 FS4 Public Safety Infrastructure M&O I&S 21 Tax Rate $- $1,000,000 New Annual Funding Alternate Plan (lowers I&S) 0.347 0.3545 0.3545 0.3545 0.3645 0.3645 0.3645 0.3645 0.3745 0.3745 0.1651 0.1576 0.1576 0.1576 0.1476 0.1476 0.1476 0.1476 0.1376 0.1376 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 $0 $5 $10 $15 $20 $25 FY 2 0 2 0 - 2 1 FY 2 0 2 1 - 2 2 FY 2 0 2 2 - 2 3 FY 2 0 2 3 - 2 4 FY 2 0 2 4 - 2 5 FY 2 0 2 5 - 2 6 FY 2 0 2 6 - 2 7 FY 2 0 2 7 - 2 8 FY 2 0 2 8 - 2 9 FY 2 0 2 9 - 3 0 Mi l l i o n s Debt Issuances FM 1518 FS4 Public Safety Infrastructure M&O I&S 22 Tax Rate $- $1,000,000 New Annual Funding Bonding Discussion FS #4 FM 3009 Extension across FM 78 Public Safety Building CIP Projects Can we wait to do new projects/programs until we have bonding capacity? Can we live with the amounts for the next 10 years in order to make the shift from I&S to M&O? 23 Council Priorities Staff Compensation – hourly rate Volunteer Schertz Destination Schertz Other Items 24 Staff Compensation 25 Minimum Wage Analysis Background Currently 35 employees < $15/hr After C&C Year 4 (2023) Implementation - 13 positions under $15/hr Impacted Positions Minimum Wage Analysis 26 Annual Turn Over by Department since Jan 2018 (3yr look) 160% 157% 117% 108%67% Staff Compensation 27 Recommendation: Raise City minimum wage to $14/hr in FY 21-22 COST: ~$29K Raise City minimum wage to $15/hr in FY 22-23 COST: ~$59K Discussion: #1 reason for separations is pay Reduce turnover in these positions No compression issues between employees & immediate supervisors or job family series (Worker I, II, etc.) Provides ability in current Personnel Budget to add 2-3 positions in FY 21-22 Volunteer Schertz New Position: Volunteer Coordinator Essential Functions: Consults and coordinates volunteer activities with departmental representatives to develop, implement, and administer volunteer programs which support City goals and objectives. Recruits volunteers for support work through interaction with faith-based organizations, educational institutions, trade organizations, businesses and corporations, and neighborhood organizations. Develops training programs for volunteers and City staff who use volunteers. Develops and presents regular reporting on volunteer efforts, initiatives and results. Estimated Cost: $40K - $50K Salary $55K - $70K Salary weighted with benefits Position resides in Human Resources 28 Destination Schertz Discussion 29 Other Council Priorities 30 Discussion 31 Facilities FY 20-21 Funded Programs Civic Center Kitchen Remodels and floor 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 Schertz needs a plumber Budget Expanded Programs Parks Relook at certain items to find money Wendy Swan to a splash pad Negotiating rates with YMCA Cost sharing with other cities for Senior Center 33 Hourly Employee Personnel 16 16 233 265 Hourly employees Less Than $14 Less Than $15 Greater than $15 •32/265 hourly employees are making less than $15/hour (~12%) •16/265 hourly employees are making less than $14/hour (~6%) •To bring all employees < up to $15 = ~$75K  ~$93K weighted •To bring all employees < up $1 or max $15 = ~44.5K  ~$55K weighted •To bring all employees < up $2 or max $15 = ~$68.4K  ~$84.5K weighted 3 4 4 52211 2 1 1 6 Hourly Employee Breakdown Animal Services - 3 Drainage Worker I - 4 Park Maintenance Technician - 4 Street Worker I - 5 Police Records Specialist - 2 Utility Billing Clerk - 2 Customer Relations Representative - 1 Events Attendant - 1 Library Clek II - 2 Library Assistant - 1 Street Worker II - 1 Service Worker I - 6 •Lowest Employee = $11.77/hr or $24,482/yr •4% merit = $979 •3x lowest employee merit = $2,937 •# employees who earned > $2,937 for 2019 merit = 19 Examples of Take-Home Pay Person A Hourly = $13.14 Gross Pay = $1,164.14 Taxes = $189.30 Total Deductions = $111.52 ($81.49 TMRS) Take Home Pay = $863.32 Elected optional life insurance and contributes to FSA. Person B Hourly = $13.14 Gross Pay = $1,052.19 Taxes = $69.92 Total Deductions = $544.78 ($73.65 TMRS) Take Home Pay = $437.49 Carries medical (base PPO) & base dental for children. Participates in optional retirement (ICMA) Has elected to take Critical Illness & Short-term disability coverage, contributes to an FSA (flexible spending account), and has voluntary life insurance. Has mandatory Child Support Order. Single Street Worker Take Home – Minimum starting salary with no deductions Hourly = $13.14 Gross Pay = $1,051.20 Taxes (estimated) = 115.00 Total Deductions (TMRS only) = $73.58 Take Home Pay = $862.62 Personnel Update New positions in 20/21, 12 added: FY 19-20 (June 2020) – Added 8 positions Patrol Officer Assistant Director of Public Works Engineer Street Worker I (2) FY 20-21 (October 2020) – Added 4 positions Police Captain Emergency Management Coordinator Projected 4-6 positions in 2022 Projected 4 positions in 2023 37 Street Worker II (1) Park Maintenance Technician Kennel Techs (2) School Resource Officer (SRO) Senior Planner Fire Fighters (4) 2nd half of FY 21 – Future Staffing Discussion / Prioritization 4 General Fund / 2 Water Class & Comp Update 38 YR 0/1 Adjustments – July 2020 YR 2 Adjustments – October 2021 Finance Future Bond Issuance FM 1518 (already approved and committed) Fire Station 4 Public Safety Building Projects from CIP lists Timing Ability to complete Public Safety Items and some CIP Reduce the I&S Rate 39 Fire Station #4 Industrial Area Benefits our ISO Rating, Insurance, Response Times Projected Completion date CY 2024 Estimated cost $15M 40 Public Safety Bldg Public Safety Building Phase 1 Provides new Building ~60K sqft Projected completion (if approved) 2028 Minor renovations for Building 6 (paint, flooring, etc.) Estimated Cost - $35M Public Safety Building Phase 2 (not planned in next 10 years) Adds on to existing new Building ~30K sqft Completes renovations for Building 6 (space reconfiguration) Estimated Cost - $25M 41 Property at FM 78 and FM 3009 Extension 42 Property at FM 78 and FM 3009 Extension 43 Great Northern Trail 44 Dietz Trail – one option for FY21-22 45 CIP Funding 46 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 CIP Funds through M&O Shift and Bond Funding CIP Fund Debt Issuance*plus impact fees and drainage fund