REGULAR MEETING
September 1, 2020
A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on September 1, 2020, at 6:00 p.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 Scott Larson; Councilmember Michael Dahle; Councilmember David Scagliola; Councilmember Allison Heyward; Councilmember Tim Brown; Councilmember Mark Davis
- Absent:
- Mayor Pro-Tem Rosemary Scott excused absence
- Staff present:
- City Manager Dr. Mark Browne; Assistant City Manager Brian James; Assistant City Manager Charles Kelm; City Attorney Daniel Santee; Assistant to the City Manager Sarah Gonzalez; City Secretary Brenda Dennis
Mayor Gutierrez called the regular meeting to order at 6:00 p.m.
Mayor Gutierrez recognized Councilmember Brown who provided the opening prayer followed by the Pledges of Allegiance to the Flags of the United States and the State of Texas.
Mayor Gutierrez gave specific requests to guests and staff in reference to wearing their masks during the City Council meeting and departing the Council meeting.
- Proclamation recognizing National Payroll Week. (Mayor/Linda Almendarez)
Mayor Gutierrez offered additional comments about the challenges of payroll and expressed his appreciation for their hard work.
- Parks & Recreation: Timothy Miles, Park Maintenance Technician. (B. James/L. Shrum/J. Montney)
- Public Works: Jeremy Perez, Drainage Worker I. (C. Kelm/S. Williams/D. Letbetter) - Not present.
- Executive Staff: Tammy Glascoe - (M. Browne)
- Announcements of upcoming City Events (B. James/C. Kelm/S. Gonzalez)
- Announcements and recognitions by the City Manager (M. Browne)
Mayor Gutierrez asked that our gratitude and appreciation be passed along to our firefighters in California for the work they are doing.
- Announcements and recognitions by the Mayor (R. Gutierrez)
Residents who choose to watch the meeting via live stream, but who would like to participate in Residents to be Heard, should email their comments to City Secretary, Brenda Dennis, at bdennis@schertz.com by 5:00 p.m. on Monday, August 31, 2020, SO THAT THE CITY SECRETARY MAY READ THE PUBLIC COMMENTS INTO THE RECORD UNDER THE HEARING OF RESIDENTS. In the body of the email please include your name, your address, phone number, agenda item # if applicable or subject of discussion, and your comments.
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.
All remarks shall be addressed to the Council as a body, and not to any individual member thereof. Any person making personal, impertinent, or slanderous remarks while addressing the Council may be requested to leave the meeting.
Discussion by the Council of any item not on the agenda shall be limited to statements of specific factual information given in response to any inquiry, a recitation of existing policy in response to an inquiry, and/or a proposal to place the item on a future agenda. The presiding officer, during the Hearing of Residents portion of the agenda, will call on those persons who have signed up to speak in the order they have registered.
Mayor Gutierrez recognized the following who spoke:
- Maggie Titterington - Chamber - Thanked all those who participated in the Chamber Bowl. She announced the upcoming Civic Leaders' Focus event scheduled for September 15, 2020, from 11:15 am - 1:00 pm which will be held at the Schertz Civic Center. This meeting is for incumbents, candidates, school boards, counties, and even cities that will not have elections this year. Attendance will be limited to 120 people.
First in person Chamber Mixer - September 17, 2020, 5:50 pm - 7:00 pm. Please register to vote online.
Flyers will be left announcing the Chamber Shred Day October 17, 2020, from 9:00 am - 12:00 pm at the Visitors Center. A small donation is suggested, but not mandatory, that will be used to adopt families for Thanksgiving and Christmas.
- Dana Eldridge - 2628 Gallant Fox Drive - Spoke regarding the purchase and selling of the property on Main Street, which is to be used for parking. He expressed his concern with Main Street needing to be cleaned up such as overfilled dumpsters, overgrown lots, and broken bottles on the ground. He also expressed the need to repair Old Wiederstein Road.
Mayor Gutierrez asked City Secretary Brenda Dennis if any resident had signed up on-line to be heard. She indicated there were none.
The Consent Agenda is considered self-explanatory and will be enacted by the Council with one motion. There will be no separate discussion of these items unless they are removed from the Consent Agenda upon the request of the Mayor or a Councilmember.
The following items were read into record:
Mayor Gutierrez asked Council if there were any items to be removed from Consent for separate action. None were removed.
Mayor Gutierrez recognized Councilmember David Scaglioa who commented on how important Mr. John Bierschwale was to our city and noted his many contributions. He expressed his regret to accept Mr. Bierschwale's resignation.
Moved by Councilmember Michael Dahle, seconded by Councilmember Allison Heyward to approve consent agenda items 1 through 5.
- AYE:
- Councilmember Scott Larson, Councilmember Michael Dahle, Councilmember David Scagliola, Councilmember Allison Heyward, Councilmember Tim Brown, Councilmember Mark Davis
Passed
The following item was read into record:
Mayor Gutierrez recognized City Manager Mark Browne who introduced the Risk Pool Board of Trustees nomination and stated the staff's recommendation was to go with the incumbents.
Moved by Mayor Ralph Gutierrez, seconded by Councilmember David Scagliola to appoint the following Board of Trustees:
Place 2 - John W. (Buzz) Fullen (Incumbent), Mayor, City of
Henderson
Place 3 Jeffrey Snyder (Incombent), City Manager, City of Plainview
Place 4 - Robert S. Hauck (Incumbent), City Manager, City of Tomball
- AYE:
- Councilmember Scott Larson, Councilmember Michael Dahle, Councilmember David Scagliola, Councilmember Allison Heyward, Councilmember Tim Brown, Councilmember Mark Davis
Passed
The following item was read into record:
Mayor Gutierrez recognized Finance Director James Walters who provided a PowerPoint presentation discussing adopting a budget for fiscal year 2020-2021. Some of the highlights included:
- All Funds - Expenses
I&S $7,094,861
Water & Sewer Fund $24,279,835
Capital Recovery Water $206,000
Capital Recovery Sewer $208,000
Drainage Fund $1,443,563
EMS Fund $9,703,111
SEDC $8,144,799
Special Revenue Funds $699,480
Grand Total $89,444,230
- Fund Balance/Equity
- General Fund
- CIP Funding
- Facilities Maintenance
- Class & Comp Implementation/ Employment Cost Index (ECI)
- Funding personnel recommended by Staffing Study
- W&S Fund
- Greytown to Pfiel Loop Line Design $156,200
- Corbett Ground Water Storage Tank Design $300,000
- FM 1518 Utility Relocation Design $750,000
- Aviation Heights Waterline Replacement $1,800,000
- Northcliffe Country Club Estates AC pipe Design & Bid $100,000
- EMS Fund
- Add 2 12-hour Full Time Paramedics
- Add a 24-Hour Full Time Paramedic
- Drainage Fund
FY 2020-21 Project
Amazon Channel - $300,000
- Economic Development
Tri County Road Improvements $4,050,000
- Year end Projection updates
Additional Tax Reveue $120K
Pool Contract $90K
Misc Income $60K
$438,941 additional to fund projects.
- Upcoming Budget Changes
Outfit Building 11 - $81,300
Medical Insurance - Est $95,000
Payroll Compensation - $??
Police Education Pay - $23,000
Facility Rental Revenue Decrease - $70,000
Investment Income Decrease - $90,000
Finance Director James Walters addressed questions/concerns from Council relating to the updates for the year-end projections and upcoming budget changes to the upcoming year. A lengthy discussion ensued regarding the possibility of lowering the tax rates. Staff reminded council that this item is regarding the proposed budget.
Moved by Councilmember Scott Larson, seconded by Councilmember Tim Brown to approve Ordinance No. 20-T-31 on first reading.
- AYE:
- Councilmember Scott Larson, Councilmember Michael Dahle, Councilmember Allison Heyward, Councilmember Tim Brown, Councilmember Mark Davis
- NAY:
- Councilmember David Scagliola
Passed
Mayor Gutierrez recognized Finance Director James Walters who provided a PowerPoint presentation outlining the appraisal roll; setting the tax rate; levying and assessing general and special ad valorem taxes. Some highlights included:
- 2020 Property Values
2020 New Taxable Development +$ 120,725,051
2020 Adjusted Taxable Value $3,906,217,828
Difference between Adjusted $ 151,412,071
Taxable Values
- Tax Rate
Voter Approval Rate - $0.5247 - The rate if exceeded triggers an automatic election on the tax rate.
Current rate - $0.5146 - The rate currently adopted by the City.
Proposed Maximum rate - $0.5146 (Proposed budget assumes this rate) - The maximum rate set at which the final adopted rate cannot exceed. $0.01 is equal to $390,000 revenue or $24.45 on the average home.
Target Tax Rate:
M&O $0.3496 $0.3495 For day to day operations
I&S $0.1650 $0.1651 To pay the City's Debt
Total $0.5146 $0.5146
FY 2020-21 City Tax Rate
Existing Residents Average City Tax Bill
2019 Tax Bill = $1,200 Avg Home Value $233,200
2020 Tax Bill = $1,241 Avg Home Value $244,500
Increase = $ 41*
*This represents the increase of the tax bill on the average taxable home value, including new construction
At Current Rate $0.5146
Existing Residents Average City Tax Bill
2019 Tax Bill = $1,200 Avg Home Value $233,200
2020 Tax Bill = $1,258 Avg Home Value $244,500
Increase = $ 58* (increase of $17)**
*This represents the increase of the tax bill on the average taxable home value, including new construction
**This represents the increase of the tax bill on the average existing home
At $0.5247 Voter Approval Rate
Existing Residents Average City Tax Bill
2019 Tax Bill = $1,200 Avg Home Value $233,200
2020 Tax Bill = $1,282 Avg Home Value $244,500
Increase = $ 82* (increase of $41**)
*This represents the increase of the tax bill on the average taxable home value, including new construction
**This represents the increase of the tax bill on the average existing home
Maggie Titterington - 5325 Storm King - Expressed her opinion stating she would rather err on the side of caution and let the tax rate remain the same.
Finance Director James Walters and City Manager Dr. Mark Browne addressed questions/concerns from Council as differing opinions/ideas were expressed.
Before the vote was taken two points of information were asked:
- Does this vote need a super majority vote? - Mayor Ralph Gutierrez
- With one Councilmember not present, do we still need five affirmative votes (super majority) to pass? - Councilmember Heyward
City Manager Dr. Mark Browne asked to review, before a vote, for Council to clarify their position on funding the budget with a possible proposed reduced tax rate. A lengthy discussion ensued.
Councilmember Scott Larson posed the question "What if there is no proposal for a tax rate adoption that receives the five (5) votes?" Finance Director James Walters stated - "if we don't have a final tax rate adopted by September 30, 2020, it will default to the no new revenue rate." The no new revenue rate is .5079. Councilmember Scott Larson asked what scenario would need to be in place to consider lowering the tax rate? A lengthy discussion ensued surrounding the possibility of lowering of the tax rate in reference to the budget passed for FY2020-2021.
Moved by Councilmember Scott Larson, seconded by Councilmember David Scagliola that the property tax rate remain flat by the adoption of the no new tax rate of .5079 which is a 0% increase in the tax rate.
AYE: Councilmember Scott Larson, Councilmember David Scagliola, Councilmember Mark Davis, Mayor Ralph Gutierrez (voted to break the tie vote),
NAY: Councilmember Michael Dahle, Councilmember Allison Heyward, Councilmember Tim Brown
Failed: Motion failed due to lack of a Super Majority vote.
Moved by Mayor Ralph Gutierrez, seconded by Councilmember Mark Davis that the property tax rate be increased by the adoption of a tax rate of .5121 which is effectively a .8% increase in the tax rate.
AYE: Councilmember Mark Davis, Councilmember Michael Dahle, Councilmember Allison Heyward, Councilmember Tim Brown
NAY: Councilmember Scott Larson,Councilmember David Scagliola
Failed: Motion failed due to lack of a Super Majority vote.
Councilmember Scott Larson asked for a point of information - He asked for clarification on the time frame to obtain a super majority vote before it defaults to the no new revenue rate. He stated he was open to compromise but would like a little more conversation and time to think about it.
Councilmember Mark Davis asked Finance Director James Walters what the increase would be for .5096. Finance Director James Walters stated the increase would be .33 %.
Moved by Councilmember Mark Davis, seconded by Councilmember Michael Dahle that the property tax be increased by the adoption of a tax rate of .5096 which is effectively a .33% increase in the tax rate.
Councilmember Larson clarified for the audience the current rate is .5146 - the motioned rate is .5096.
AYE: Councilmember Mark Davis, Councilmember Scott Larson, Councilmember, Michael Dahle, Councilmember Tim Brown
NAY: Councilmember David Scagliola, Councilmember Allison Heyward
Failed: Motion failed due to lack of a Super Majority vote.
Mayor Ralph Gutierrez stated the effective tax rate will stay at .5079 with no increase until this Council decides where we go.
City Manager Dr. Mark Browne clarifies if there are no further motions it goes to the next meeting.
Mayor Gutierrez recognized City Secretary Brenda Dennis who provided the roll call vote confirmation for agenda items 1 - 8.
The following item was read into record:
Mayor Gutierrez recognized Fire Chief Kade Long who provided a PowerPoint presentation providing updated COVID-19 statistics within the state of Texas and surrounding counties and answered questions from Council.
Councilmember Michael Dahle asked if the city would sponser the annual National Night Out event this year in light of COVID-19. Fire Chief Kade Long stated there has not been a decision made at this time, but they would continue to monitor the situation. Mayor Ralph Gutierrez stated as a city we need to be consistent with all businesses as well as the events we allow.
Mayor Gutierrez mentioned agenda item #10 was in the City Council packets and can also be found on our website.
- Announcements by the City Manager.
- Requests by Mayor and Councilmembers for updates or information from staff.
- Requests by Mayor and Councilmembers that items or presentations be placed on a future City Council agenda.
- Announcements by Mayor and Councilmembers
- City and community events attended and to be attended
- City Council Committee and Liaison Assignments (see assignments below)
- Continuing education events attended and to be attended
- Recognition of actions by City employees
- Recognition of actions by community volunteers
Mayor Gutierrez passed along his appreciation to Councilmember Allison Heyward for the excellent job she did hosting the TML Region 7 Workshop
As there was no further business, Mayor Gutierrez adjourned the meeting at 8:14 p.m.
____________________________________
Brenda Dennis, City Secretary