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09-04-2018 Agenda Budget and Tax Rate Council PresentationCity Council Meeting September 4, 2018 FY 2018-19 Budget and Tax Rate 1 City of Schertz 2018 Strategic Plan The Vision, Mission and Values are important because they: •Frame the City’s identity and brand •Set defined direction for achieving the City’s objectives •Provide clarity when making important organizational decisions; and •Define our true north, guiding us toward the right path Adoption and implementation of these philosophies by City Staff, City Council and community stakeholders will facilitate critical alignment that is necessary for organizational success. The City’s Budget and Tax Rate Serve to Further the Goals of the Strategic Plan 2 City of Schertz 2018 Strategic Plan •So what is our True North? •What is the appropriate balance? 3 What do we take pride in? 2007 CNN Money Magazine Top 100 Best Places to Live -#40 4 City of Schertz Strategic Plan Meetings -2009 & 2011 Mission (Why do we exist?) •To be a community where all aspire to live Vision (Where do we wan to go?) •Our vision is to be the premier city in the region in quality of life and sustainable economic prosperity. Goals (How are we going to get there?) 1.Quality of Life 2. Sustainable Economic Prosperity 3. Effective Land Use 4. Regional Collaboration and Intergovernmental Cooperation Where have we been headed? 5 City of Schertz Strategic Plan Meetings -2009 & 2011 Strengths •Recreation Opportunities •Quality of Life Opportunities •Acquisition of additional parkland •Indoor soccer •Dog park •Drainage area for development of recreational activity How did we think we would get there? 6 •Core Services Policy Values •Safe Community •Essential Services •Quality of Life Policy Values •High Quality of Life •Attractive Community •Economic Engine Policy Values •Economic Prosperity •Fiscally Sustainable It is about finding the appropriate balance. 2018 Strategic Plan City of Schertz 7 These six Policy Values are a reminder of what we are trying to accomplish as a community and add clarity in achieving our vision for being a complete city. Schertz Economic Development Corporate Website •Schertz, Texas: Strategically located on Interstate 10 and Interstate 35 corridors just outside San Antonio at the northeast gateway to Austin, the City of Schertz is a premier Texas community. The City actively seeks to create a welcoming and exciting place to conduct business and call home. Economic Development & Quality of Life 8 Where is our reputation now? San Antonio Magazine August 2017 –Top 10 Neighborhoods We Love Schertz Schertz was a vibrant community in the late 1800s before a railroad arrived, bringing more people and commerce. With the development of Randolph Air Force Base, Schertz and surrounding suburbs northeast of San Antonio became strong independent towns. Now, more than 35,000 people live in the 32-square-mile city. Play / Schertz has many homegrown events, such as SchertzFest, a celebration in September that includes a carnival and BBQ cook-off. 9 Schertz is also home to the Buffalo Valley Youth Association, a large, regional soccer complex. Northcliffe Golf Club, an affordable links-style course, is a hidden gem of sorts for local golfers. Explore / Schertz has more than 20 public park locations, totaling 370-plus acres, including a skate park and a dog park. Pickrell Park’s public pool was recently improved and unveiled a new mural. Crescent Bend Nature Park contains dozens of species of native fauna and flora. 2016 Community Survey Report The three Parks and Recreation services that respondents indicated should receive the most emphasis over the next two years include •Walking and biking trails in the City •Maintenance and appearance of City parks, and •Number of City parks City parks and recreation programs were also the highest priority for the City when ETC Institute analyzed the priority investment ratings of overall City services. Because we value the input from our residents we have budgeted $25,000 to do the community survey in 2018 What have our residents told us? 10 2016 Community Survey Report Why did most respondents of the 2016 survey move to Schertz? 1. Location –71% 2. Quality of Life –60% 3. It’s a Safe Community –56% 4. Affordability –47% How do we balance quality of life and affordability? What have our residents told us? 11 Council on the Go Meetings •Generally more residents attend these than normal Council meetings •The City has included updates of parks programs at the Council on the Go meetings •What has the feedback been from residents? Because we value communicating with our residents we have spent $6,000 videotaping these meetings each year. What have our residents told us? 12 Community Budget Meetings •Although not well attended, these meetings provide a forum for those residents who are highly engaged to discuss the budget and offer their views. •What percentage of attendees generally supported the proposed tax increase vs. not increasing taxes? Given the staff time and cost involved do we want to continue to solicit input from our residents on the budget beyond the minimum required by State Law? What have our residents told us? 13 •2 Shred Days per year $10,000 •Close 1 Outdoor Pool $150,000 •Stop free lunch for non-Schertz residents $40,000 •Make Schertz Magazine Digital $115,000 •Reduce the number of parks •Stop adding new parks Cuts Proposed on August 28, 2018 14 •Collected over 9,000 gallons of paper to be shredded at the events this past year •While some residents own a shredder, others clearly do not as they brought in decades worth of sensitive personal papers •Why not reduce the level of service (1 time per year) vs. eliminate altogether? •Should we consider this as part of a larger discussion of solid waste -# of times trash picked up per week, increased emphasis on recycling, allowing businesses to select their own trash service, brush chipping, etc.? 2 Shred Days per year $5,428.50 15 •For the 62 days both pools were open this summer there were 12,783 attendees •Wendy Swan Pool has fewer attendees •Would residents of the area prefer to close Wendy Swan Pool or the North Community Center? •Once we close it, would it ever be viable to reopen it? •Replace with a splashpad to save money –the “SMALL” one being built in UC with staff doing grading, trenching, etc. is about $600,000 + $25,000 (fencing and shade structure) with $25,000 for M&O. They are planning for a larger $1.5 million one in UC Park. Close 1 Outdoor Pool $150,000 16 •The city has applied for grant funding to support this program which would preclude us from charging for meals and Cibolo has indicated a willingness to contribute $40,000 a year towards the Senior Center •Staff can continue to look for ways to drive revenue/donations while maintaining the level of service for seniors in the area who have come to rely on this •21% of seniors who eat (about 20 per day) are from outside of Schertz and Cibolo Stop free lunch for non Schertz residents $40,000 17 •Currently print 180,000 per year and are proposing it increase to 192,000 •Digital reads are growing –342 to 461 (2016 to 2018) as has average time spent reading –2:43 minutes to 3:20 minutes. Digital Parks guide has had 1,760 views •Biweekly e-newsletter goes out to 8,134 subscribers with a bounce rate of 11% and an open rate of 19% •About 700 copies of each month’s magazines are distributed a the Chamber, Library, Senior Center, Rec Center, etc. Staff keeps about extra 50 to 100 copies for requests, etc. those locations are out and the extras were gone mid month in August. •While digital is growing, given that in the 2016 Citizen Survey 83% of respondents said the magazine was their primary source of information, do we want to go digital before asking them that this coming year? •Push by staff has been to add video content –our HAWK Crosswalk video has over 1,000 views on Youtube and 17,100 on Facebook Make Schertz Magazine Digital $115,000 18 •Council could place this item on the ballot next year to sell parkland •The assumption being our spending per capita is very high compared to most other cities –but make sure we are doing and apples to apples comparison-our $68 per person includes the civic center, events staff, and senior center parking lot work as well as pools and parks and capital equipment used by others (bucket truck) •Data can be confusing as well –does New Braunfels have 18 parks or 39? Reduce the number of parks 19 •Revisit partnerships and charge for new programs to be cost neutral. Other cities may have assets that drive more revenue – access and parking for the Tube Chute on the river, miniature golf, miniature train ride, paddle boats. Parks Continued –Increase Focus on Revenue 20 •We already hear from residents who are not near an existing park –Laura Heights and Kensington Ranch about how a park near them might be built •Are we comfortable with different levels of service for different parts of town –accessibility to parks, keeping in mind our population will likely double? Stop Adding New Parks 21 •Maintenance levels are not where they need to be and funding is an issue •Increases in Veterans Homestead Exemptions and reductions in court revenue have significantly impacted the City’s revenue. •We must continue to look for efficiencies •We need to break the cycle we are in –cost effective solutions over the long term and decrease reliance on CO bonds •We need to take the appropriate amount of time to fully analyze our programs –why we do them, the costs and benefits, alternatives, etc. to make thoughtful decisions Be careful not to make cuts that seem minor but over time have a significant impact on the City or for which there may be better options. What we generally agree on 22 Adjust our budget assumptions –assume higher revenue and/or lower expenses •Does that really change our situation? When revenue is higher and expenses are lower, those “leftover” funds are rolled over to the next year to be prioritized and spent. So we don’t really gain any additional funds –we just move it up one year. •It is very problematic to come up short on revenue and/or high on expenses –we have to make cuts mid year where we can –not where we would choose to. •Despite our pessimistic/conservative estimating of revenues our sale tax revenue has declined 3 times in the past 10 years. •We read about cities that have this happen •Often spending shortfalls are programs that run behind schedule and the money is rolled over to the next year •Savings in spending comes from high staff vacancies and turnover – something we are working to change –which would reduce the amount of savings. Option 1 23 Quickly make cuts to programs and departments to increase funding for maintenance and maintain the current tax rate. •As noted cuts this significant cannot be made without impacting levels of service. •Cuts this significant necessitate us making changes to our Strategic Plan and adjusting our vision of what we want Schertz to be. •It also shifts the focus we have going forward that have discussed –competitive pay and benefits and staffing levels appropriate to level of service expectations as there is not funding in the 5 year model Option 2 24 Approve the proposed tax increase to immediately fund increased maintenance and expanded programs designed to increase effectiveness and look for program changes over the next year •Over the course of the next year, staff and council will explore existing programs to determine if changes in direction are appropriate in light of the short and long term implications •Actively and aggressively solicit input from member of the community on proposed program changes –citizen survey, Council on the Go meetings, etc. before making decisions •Identify other areas, like maintenance, where service levels are below desired levels and determine appropriate course of action to correct. •As part of next year’s budget, cut taxes if revenue is adequate to fund over the long term services at the reevaluated and established level. Option 3 25 Examples to Evaluate •Senior Center Program and Costs •Park Master Plan Standards •AACOG ART Bus program •Schertz Magazine •Recreation Partnerships •Civic Center •Trash Collection/Recycling/Shredding/Chipping Option 3 continued 26 Approve budget at the current or effective tax rate with the expanded programs proposed at those levels. •Over the course of this year evaluate programs to be cut and reallocate those funds next year to increase funding for maintenance Option 4 27 Discussion/Questions? 28