HomeMy WebLinkAbout2019-O-23 - Employee Incentive Payments for Established Standards r ORDINANCE NO. 2019-0-23
• AN ORDINANCE OF THE CITY OF STEPHENVILLE, TEXAS, ESTABLISHING INCENTIVE PAYMENTS
TO CERTAIN OFFICIALS AND EMPLOYEES UPON MEETING ESTABLISHED STANDARDS SET IN
ADVANCE BY CITY COUNCIL.
WHEREAS, the City Council of the City of Stephenville wishes to increase economic
development of new and established businesses within the City limits of Stephenville; and
WHEREAS, the City Council of the City of Stephenville wishes to incentivize certain
employees of the City to make their best efforts to attract new businesses and expand current
businesses within the City limits of the City of Stephenville; and
WHEREAS, the City Council of the City of Stephenville has determined that incentivizing
certain employees to increase economic development efforts to encourage new and established
businesses to locate within the City limits of Stephenville will be beneficial to all residents and
property owners in the City; and
WHEREAS, the City Council of the City of Stephenville has determined that a "group
effort" by City Officials and designated employees to bring economic development from the
"idea" phase to completion is required, and the City Council wishes to provide incentives to
certain employees who are involved in business development efforts; and
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WHEREAS,the purpose of establishing in advance the eligibility requirements for certain
officers and employees of the City of Stephenville to receive compensation in the form of
incentive payments is to fully comply with all provisions of the Texas Constitution, including but
not limited to, Article 3, Section 52 of the Texas Constitution; and
WHEREAS,the City Council has determined that the City employees' efforts to bring new
business to the City of Stephenville and encourage the expansion of current business often
requires City employees to go above and beyond the normal scope of their job duties.
WHEREAS the City Council recognizes that SEDA maintains a degree of independence
including budgeting responsibilities. The incentives outlined in this ordinance shall not be
perceived as mandatory to SEDA, but shall serve as recommended and maximum amounts for
all employees.
NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
STEPHENVILLE,TEXAS,THAT:
SECTION 1. RECITALS INCORPORATED.
The facts and recitals contained in the Preamble of this Ordinance are hereby found and declared
to be true and correct.
SECTION 2. FINDINGS
a. That the City Council, after discussion of the proposal to establish salary incentives for
certain employees of the City of Stephenville and the Stephenville Economic
Ordinance No.2019-0-23 Development Incentives Page 1 of 5
„_ Development Authority ("SEDA"), in advance of their performing work advancing the
City's economic development, hereby finds that such incentives, as defined below, are in
the best interests of the City's residents and taxpayers.
b. That the City Council further finds that establishing and funding a salary incentive plan for
certain employees of the City of Stephenville and SEDA will enhance the City's efforts to
encourage new businesses to move into or establish a presence in the City of Stephenville
and/or encourage businesses already located in Stephenville to expand their operations,
thus increasing employment opportunities.
c. That the City Council further finds that establishing and funding a salary incentive plan for
certain employees of the City of Stephenville and SEDA should enhance the co-operative
efforts among City Officials and SEDA
d. That the City Council further finds that establishing and funding a salary incentive plan for
certain employees of the City of Stephenville and SEDA complies with all Texas
Constitutional and statutory requirements.
SECTION 3. CRITERIA FOR SALARY INCENTIVE PROGRAM
That the requirements of Article 3 §52(a) of the Texas Constitution are met by the following
criteria establishing the details of the salary incentive program:
a. Positions eligible for incentive payments provided in this Ordinance are only as listed on
.... Exhibit A to this Ordinance
b. No employee listed on attached Exhibit A on the list of employees eligible to receive
incentive payments shall receive such payment in the event of retirement, termination
for cause, resignation to accept employment elsewhere, or if no longer employed upon
the date the incentive payment is due to be paid.
c. The schedule of the amount of eligibility for performance in a fiscal year is contained on
Exhibit A to this Ordinance.
d. In the event that an incentive employee leaves employment with the city for any reason,
that employee's replacement is not eligible to receive incentives for incentivized projects
begun prior to their employment with the city.
SECTION 4.
That no later than October 1 of each year, the City Council shall establish the total amount of
incentive dollars to which the eligible positions listed in Appendix A attached hereto may be
entitled in the event the pre-stated ad valorem tax increases are met.
SECTION 5.
That no later than October 1 of each year, the City Council shall establish the requirements
delineating eligibility of positions named in Appendix A above to receive salary incentives.
Ordinance No.2019-0-23 Development Incentives Page 2 of 5
SECTION 6. SEVERABILITY CAUSE.
Should any section, subsection, sentence, clause or phrase of this Ordinance be declared
unconstitutional or invalid by a court of competent jurisdiction, it is expressly provided that any
and all remaining portions of this Ordinance shall remain in full force and effect. The City hereby
declares that it would have passed this Ordinance,and each section,subsection,clause,or phrase
thereof irrespective of the fact that any one or more sections,subsections,sentences,clauses and
phrases be declared unconstitutional or invalid
SECTION 7. OPEN MEETINGS.
It is hereby found,determined,and declared that sufficient written notice of the date, hour, place
and subject of the meeting of the City Council at which this Ordinance was adopted was posted
at a place convenient and readily accessible at all times to the general public at the City Hall of
the City for the time required by law preceding its meeting, as required by Chapter 551 of the
Texas Government Code,and that this meeting has been open to the public as required by law at
all times during which this Ordinance and the subject matter hereof has been discussed,
considered and formally acted upon. The City Council further ratifies,approves and confirms such
written notice and the contents and posting thereof.
SECTION 8. EFFECTIVE DATE.
This Ordinance shall take effect immediately upon its adoption and publication in accordance with
and as provided by law and the City Charter.
PASSED AND APPROVED ON this 25th day of July, 2019.
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2 �'•' ug SvienlMayor
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Staci L. King, City Secretary '�o,9 �`'
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aCriVeReviewed by Allen L. Ba ,
City Manager
Approved as to form and legality by
Randy Thomas, City Attorney
Ordinance No.2019-0-23 Development Incentives Page 3 of 5
EXHIBIT A
A. Positions Eligible for Economic Development Performance Incentives
• City Manager
• Assistant City Manager
• Economic Development Director
• Assistant Economic Development Director
B. Schedule of amount of performance incentives by position
1. When building permit on commercial project over 2 million dollars is issued:
City Manager, Assistant City Manager, SEDA Executive Director, and SEDA Assistant
Executive Director shall each be paid within thirty (30) days a five hundred dollar ($500)
incentive.
2. When certificate of occupancy is issued on a commercial project over two million dollars
($2,000,000) is issued:
City Manager, Assistant City Manager, SEDA Executive Director and SEDA Assistant
Executive Director shall be paid within thirty (30) days a fifteen hundred dollar ($1,500)
incentive.
For certain positions:
AM NI\
When any commercial project over two (2) million dollars is completed and the final ad
valorem/property values are provided to the city, the formulas below shall be used to
calculate incentives for the following positions:
1. City Manager and Executive Director of SEDA
a. Six (6) percent of City of Stephenville portion of calculated ad valorem/property tax
revenue of project, as assessed by E.C.A.D. the first year after completion.
b. Two (2) percent of City of Stephenville portion of calculated ad valorem/property tax
revenue of project, as assessed by E.C.A.D. the second year after completion.
c. One and two-tenths (1.2) percent of City of Stephenville portion of calculated ad
valorem/property tax revenue of project, as assessed by E.C.A.D.the third year after
completion.
Payment is to be made to the employee no later than thirty (30) days after receipt of the
final ad valorem values each year.
2. Assistant City Manager
For each year that the City Manager receives disbursement in the three (3) incentivized
years, as described above,the Assistant City Manager shall annually receive a payment of
fifteen (15) percent of the scheduled amount to be paid to the City Manager in that year.
-- Payment is to be made to the employee no later than thirty (30) days after receipt of the
final ad valorem values each year.
Ordinance No.2019-0-23 Development Incentives Page 4 of 5
.,� 3. Assistant Executive Director SEDA
When City Manager and SEDA Executive Director are paid their year 1 (one) incentive
described above,the Assistant SEDA Director will be paid four tenths(.4)of one(1)percent
of any grant funds that were gained in furtherance of completing any commercial project
over two million dollars ($2,000,000).
4. Calculation of Ad Valorem Tax Increase
The ad valorem tax increase described above shall not include dollar amounts for single-
family residences.
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Ordinance No.2019-0-23 Development Incentives Page 5 of 5
EXHIBIT A
Amended August 12, 2019
1. Positions Eligible for Economic Development Performance Incentives
A. Tier I
• City Manager
• Assistant City Manager
• Economic Development Director
• Assistant Economic Development Director
B. Tier II
• Director of Public Works
• Director of Finance
• Director of Planning and Development
• City Engineer
• Building Official
• Fire Marshal
2. Calculation of Inventive payments
All incentive payments below shall be calculated on ad valorem tax values, less any incentive
given to the project developer.
3. Calculation of Ad Valorem Tax Increase
-- The ad valorem tax increase shall include only dollar amounts for real property values and
shall not include business personal property values
4. Eligible Projects
A. Commercial Projects with a value exceeding 2.5 million dollars ($2,500,000)
B. Mixed-Use Projects
a. Mixed-use projects are those that contain both residential and commercial usage
in the same buildings, specifically commercial/retail and multi-family.
b. To be eligible for development incentives, a mixed-use project must consist of
commercial and/or retail establishments that are open to the general public on
the ground level of the building with multi-family residential beginning on the
second level or higher.
C. Single-Family Residential Projects are not eligible for incentives.
D. Multi-Family Residential Projects are not eligible incentives.
5. Definitions:
A. Projects and valuations shall be defined by single-parcel boundaries. Cumulative
valuations of projects across contiguous parcels owned by a single person or entity shall
not be used to determine eligibility for development incentives.
B. Incentives will be paid only on the first building permit and certificate of occupancy on a
parcel unless:
a. If a contiguous parcel is acquired after the completion of a project, and the parcels
are replatted to a single parcel, a project will be considered to have entered into an
Ordinance No.2019-0-23 Development Incentives Page 1 of 3
Amended Exhibit"A"2019.08.12
,� additional project phase and shall be eligible for additional incentives if Phase I of the
project exceeded 2.5 million dollars ($2,500,000) in valuation.
C. "Parcel" is defined as a tract of land defined by legally surveyed boundaries.
6. Schedule of amount of performance incentives by position
A. Tier I
(1) When building permit on commercial project over 2.5 million dollars ($2,500,000)
is issued:
City Manager, Assistant City Manager, SEDA Executive Director, and SEDA Assistant
Executive Director shall each be paid within thirty (30) days a five hundred dollar
($500) incentive.
(2) When certificate of occupancy is issued on a commercial project over 2.5 million
dollars($2,500,000) is issued:
City Manager, Assistant City Manager, SEDA Executive Director and SEDA Assistant
Executive Director shall be paid within thirty (30) days a fifteen hundred dollar
($1,500) incentive.
(3) When any commercial project over 2.5 million dollars ($2,500,000)is completed and
the final ad valorem/property values are provided to the city, the formulas below
shall be used to calculate incentives for the following positions:
_ (a) City Manager and Executive Director of SEDA
Six (6) percent of City of Stephenville portion of calculated ad valorem/property
tax revenue of project,as assessed by E.C.A.D.the first year after completion, less
any incentives given to the project developer.
Payment is to be made to the employee no later than thirty(30)days after receipt
of the final ad valorem values each year.
(b) Assistant City Manager and SEDA Assistant Director
For each year that the City Manager and SEDA Executive Director receives
disbursement as described above,the Assistant City Manager and SEDA Assistant
Director shall receive a payment of fifteen (15) percent of the scheduled amount
to be paid to the City Manager and SEDA Executive Director in that year.
Payment is to be made to the employees no later than thirty (30) days after
receipt of the final ad valorem values each year.
(c) Assistant Executive Director SEDA
In addition to the above described payment, when City Manager and SEDA
Executive Director are paid their year 1 (one) incentive described above, the
Assistant SEDA Director will be paid four tenths(.4)of one(1) percent of any grant
funds that were gained in furtherance of completing any commercial project over
2.5 million dollars($2,500,000).
Payment is to be made to the employee no later than thirty(30)days after receipt
of the final ad valorem values each year.
Ordinance No.2019-0-23 Development Incentives Page 2 of 3
Amended Exhibit"A"2019.08.12
B. Tier II
i) When building permit on commercial project over 2.5 million dollars ($2,500,000)
is issued:
Director of Public Works, Director of Finance, Director of Planning and Development,
City Engineer, Building Official, and Fire Marshal shall each be paid within thirty (30)
days a one hundred dollar($100) incentive.
ii) When certificate of occupancy is issued on a commercial project over 2.5 million
dollars($2,500,000) is issued:
Director of Public Works, Director of Finance, Director of Planning and Development,
City Engineer, Building Official, and Fire Marshal shall each be paid within thirty (30)
days a two hundred fifty dollar($250) incentive.
Ordinance No.2019-0-23 Development Incentives Page 3 of 3
Amended Exhibit"A"2019.08.12