SEPTEMBER 16 2003
SCHERTZ ECONPMIC .DEVELOPMENT CORPORATION (4-B BOARD)
SEPTEMBER 16, 2003
The Schertz Economic Development Corporation (4-B Board) convened in Regular .
Session on Tuesday, September 16, 2003 at 6:30 p.m. in the Municipal Complex
Conference Room, 1400 Schertz Parkway, Schertz, Texas. Those present were President
Ken Greenwald, Vice-President Steve White, Secretary Johnie McDow, Director Ramon
Cook, Director Steve Simonson, Director Reginna Agee, and Director Tony Wilenchik.
Also present were City Manager Mark Marquez, Treasurer Juan Santoya, Assistant City
Manager John Bierschwale and Recording Secretary Norma Althouse.
#1 Call to Order
President Greenwald called the meeting to order at 6:33 p.m.
#2 Discuss and take action on FY 2003/2004 Budget
Mr. Marquez advised the first page they have is a swnmary and this page will capture
exactly what's happening. He anticipates the revenues munbers will increase by about
$50,000. On the General Fund budget they are $86,000 off of making 1.5 million dollars.
They haven't gotten the September check yet, so he anticipates they will make their
budget projections. As he looks forward to the retail spaces coming aboard, he doesn't
feel uncomfortable in saying these numbers are going to be higher.
Mr. Marquez went on to say the miscellaneous figures the Board sees is investment
income from the fund balance. The last figure he saw was approximately $560,000.
Director Cook observed that's near enough two years payments. Mr. Marquez indicated
the minimum amount the Board had agreed upon was a minimum of $500,000 and they
just need to make sure it stays there. They will probably add to it by about $80,000 this
fiscal year.
Mr. Marquez told the Board as they go through the expenditures swnmary, the non-
departmental figures they're looking at are essentially the debt service payments on the
building themselves and the other equipment they purchased. For example, they're
looking at $380,000 in debt service on the buildings. There's a payment of$161,460 on
the fire engine and after this there are only two payments left on it. The brush truck is
paid off He added something in terms of their discussion on rolling stock for the
emergency services departments. The $75,000 will be complimented by another $25,000
in general fund to buy five police units this year. Secretary McDow asked what about
vehicles for the rest of the City. Mr. Marquez replied it's in another budget and he
doesn't know how comfortable he is about using these funds for that. President
Greenwald pointed out these funds should be used ouly for emergency vehicles. Mr.
Marquez stated they have a grand total of $620,000 in terms of expenditures.
Mr. Marquez then went on to say the other set of expenditures they see is public
information. He left the PIO (Public Information Office) in this fund, but he also took
out the Economic Development person. He sensed from discussion last year, that the
Board was not totally comfortable with having her salary paid out of this fund. He's not
comfortable with the PIO department coming out of this fund and they may move it back
into General Fund next year. The net result is a fund balance of about $84,000 that's
going to be added to the $560,000 that's in there now.
They budgeted $114,000 last year for improvements to parks in the area and he just
signed a contract today for $83,000. Director Cook asked with whom and Mr. Marquez
replied with Moss.
Mr. Marquez then stated they have already taken care of the vent, the security camera is
purchased and the gym equipment is purchased and in place. Those expenditures have
been paid with the exception of the parking area and they should have some money left
over from that. This is a very straightforward budget. Again, he is uncomfortable with
the PIO being in there, but it will remain there unless he can do some things with the
rolling stock.
Mr. Marquez went on to say he hasn't had a chance to speak with the Fire Chief, but they
may want to look at replacing one of their pumpers. Also, when the new Fire Sub-Station
comes on board, they may want to purchase a piece of equipment for that. That's not
going to happen this year and it may very well not happen next year. That line item will
remain in place for equipment replacement.
Vice-President White had a question about rolling stock. In the original layout for the
building, they budgeted to change from Ford to Freightliner for ambulances. President
Greenwald indicated that is already in process. The two newest ones will be diesel
Freightliners. Mr. Marquez mentioned those were front-funded by the City in the amount
of approximately $260,000. They are not funded out of here, but they may consider it
when it comes time. The revenue structure and the expenditure structure of the EMS
service will now provide a way to pay for these things. Its; not just rolling stock he's
considering for EMS, it may be some of the older equipment, for example, gurneys.
Mr. Marquez noted there are other uses for these funds that go beyond the emergency
services area. We will look at this again in more depth, but when you look at what the
citizens actually passed, it's a laundry list. They asked that the buildings be constructed
first, but beyond that it deals with recreational things and economic development things.
As these things get paid down, there will be funds rolling in there that will surprise you.
Even though we're planning to replace fire trucks on a cycle basis or add on equipment to
EMS on a cycle basis, or purchase police cars on a cycle basis, there will still be funds
left over and we should utilize them. We should maintain our reserves and use the
balance.
Mr. Maquez then said one possible project has to do with recreation/tourism. President
Greenwald and he have talked several times about a tournament-quality ballfield. Mr.
'.
Marquez emphasized if that's not economic development and towism and doing
something for our own citizens, he's not sure what is. It's appropriate to use these funds
for this, but not yet. We had a stabilizing year last year. This year is a positioning year.
President Greenwald remarked that according to the Seguin Gazette-Enterprise, the
Comptroller says our sales tax went up in July by 17%. Mr. Marquez said we would
make our budget. Surprisingly we have a strong base. We have a good industrial base.
Secretary McDow asked if postage and printing and binding are in the PIO budget. Mr.
Marquez replied yes they are. They are publishing the Newsletter.
Director Cook asked what's next and President Greenwald said if no one has any further
questions, they need to make a motion to approve the budg\:t for FY 2003/2004.
Director Agee moved to approve the budget for FY 2003/2004. Vice-President White
seconded the motion, which carried by unanimous vote of all Directors present.
Mr. Marquez stated he is not a fan of mid-year budget adjustments. If the Board does
their work right, you shouldn't have to do that. Director Agee asked if any of the money
has to be re-appropriated and was told it does not. Mr. Marquez added, however, it's
entirely possible with the parking lot.
Several members of the Board asked to be furnished with the list of items that were on
the bond election ballot. Mr. Marquez agreed to furnish those items. Secretary McDow
then noted that Mr. Marquez had mentioned there have been legislative changes. Mr.
Marquez noted that one thing the legislature specifically took out was the building of
municipal buildings. You have to have a separate bond issue to do that. It cannot come
out of 4-B money. There was further discussion on this and Mr. Marquez said since the
City had done this previously, they are grandfathered. The reason the ballot was written
the way it was written was to allow flexibility down the road. Senator Ratcliffe, author of
the bill, is concerned about cities padding their general fund.
Vice-President White mentioned that when the definition of the 4-B code was written, the
City Attorney spent two nights with them spelling it out so they would understand it.
At this time, Mr. Marquez thanked the Board for their time and cooperation.
#3 Adjournment
Secretary McDow moved to adjourn the meeting at 6:56 p.m. Vice-President White
seconded the motion, which carried with the unanimous vote of all Directors present.
MINUTES APPROVED this the _day of
Signature of all Directors required whether present or not.
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Director
President
Director
Vice-President
Director
Secretary
Treasurer
Director