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FY 2025-26 Adopted Budget3 CITY OF SCHERTZ, TEXAS ADOPTED ANNUAL BUDGET FISCAL YEAR 2025-26 OCTOBER 1, 2025 - SEPTEMBER 30, 2026 RALPH GUTIERREZ MAYOR MARK DAVIS COUNCILMEMBER PLACE 1 MICHELLE WATSON COUNCILMEMBER PLACE 2 PAUL MACALUSO COUNCILMEMBER PLACE 3 BENJAMIN GUERRERO COUNCILMEMBER PLACE 4 ROBERT WESTBROOK COUNCILMEMBER PLACE 5 ALLISON HEYWARD COUNCILMEMBER PLACE 6 TIM BROWN COUNCILMEMBER PLACE 7 PREPARED BY STEVE WILLIAMS, CITY MANAGER BRIAN C. JAMES, DEPUTY CITY MANAGER SARAH GONZALEZ, ASSISTANT CITY MANAGER JAMES P. WALTERS, FINANCE DIRECTOR JESSICA DYCUS, ASSISTANT FINANCE DIRECTOR MIKE WALKDEN, FINANCIAL ANALYST CITY OF SCHERTZ 9 §CJH[]EJR{lf Z August 19, 2025 Honorable Mayor Gutierrez and Members of the City Council City of Schertz, Texas 1400 Schertz Pkwy Schertz, Texas 78154 Subject: Transmittal of the Fiscal Year 25-26 Proposed Budget Dear Mayor Gutierrez and Members of the City Council: • • • • • • It is my privilege to present the Proposed Budget for Fiscal Year (FY) 25-26 for the City of Schertz in accordance with the Texas Local Government Code, Texas Tax Code, and the City of Schertz City Charter. This document reflects our ongoing commitment to sound financial management, excellent service delivery, and the strategic priorities established by the City Council. The combined FY 25-26 Adopted Budget totals $272,679,332, including an Operating Budget of $740,762,098 and a Capital Budget of $72,517,234. I believe this represents a balanced financial plan that maintains essential services, invests in infrastructure, and positions the City for continued organizational and community success. For FY 25-26, the Adopted Budget centers on five key priorities: Staff Compensation - To attract and retain high-quality employees, the budget includes adjustments to maintain competitive compensation levels across all departments. This investment in our workforce recognizes the vital role City employees play in delivering exceptional service to our community. Street Maintenance and Repair -Maintaining the safety and quality of our transportation infrastructure remains a core service priority. The budget dedicates additional resources to pavement preservation, street rehabilitation, and repair projects that enhance mobility and extend the useful life of our roadways. Capital Improvement Program (CIP) - The budget continues to advance our multi-year Capital Improvement Program, funding critical projects that support growth, improve quality of life, and ensure the reliability of essential public assets. These investments reflect a balanced approach between current infrastructure needs and future community demands. CITY OF SCHERTZ • • • • • • 10 §CJH[]EJR{lf Z • • • • • • Increasing Staffing Levels - As service demands and community expectations grow, the budget strategically adds new positions in key departments to improve operational capacity, customer service, and responsiveness. These targeted staffing increases will enhance the City's ability to meet present and emerging needs effectively. New and Remodeled Facilities - The budget supports planning, design, and construction efforts for new and remodeled facilities that improve service delivery, employee efficiency, and public accessibility. These projects underscore our commitment to maintaining functional, modern, and safe spaces for both employees and residents. Economic Conditions and Fiscal Challenges Developing the FY 25-26 budget required careful consideration of current and emerging economic conditions. Schertz continues to experience a strong and resilient local economy, even as broader state and national trends present uncertainty. As of August 2025, the City's unemployment rate stands at 4.5%, slightly higher than the San Antonio rate of 4.3%. Sales tax revenues continue to remain steady, with future performance depending largely on the continuation of strong retail development along the 1-35 corridor, as well as consumer confidence and regional economic stability. It should be noted that in FY 24-25 that the City received two large payment adjustments from the State resulting in overall collections that significantly exceeded the City's multi-year average. These one-time adjustments were removed from the City's revenue forecast for FY 25-26 to ensure a balanced and realistic financial plan. A key fiscal challenge continues to be the Disabled Veteran's Homestead Exemption (DVHS) program, which provides qualifying veterans with a full exemption from property taxes. Although the City experienced lower growth in DVHS exemptions this year-8.6% compared to the 22.0% three-year average-the total exempt property value now exceeds $7.08 billion, representing approximately $5.5 million in foregone revenue annually, or 19% of total property tax collections. Staff continues to advocate for legislative changes to increase the state's aid program for cities with disproportionately high concentrations of DVHS exemptions. However, since 2020, no adjustments have been made, and the state program currently funds only 17.5% of total requests statewide. To address this ongoing challenge, the City has incorporated the DVHS exemption's impact into the Five-Year Financial Forecast, aligning projected service and program growth with property tax limitations to ensure continued fiscal CITY OF SCHERTZ • • • • • • 11 12 38.22 SQ.MILES CITY AREA CITY PROFILEAND DEMOGRAPHICS BY THE NUMBERS HAVE A COLLEGE DEGREE 43,969RESIDENTS MEDIAN AGE: MEDIAN HOUSEHOLD INCOME:$100,325 MEDIAN HOME VALUE:$323,972.05 53% NUMBER OFHOUSEHOLDS:15,585 FOUNDED IN1958 SCHERTZ, TEXAS The City of Schertz is a premier community located along the I-35 and I-10 corridors. Nestled between two of the fastest-growing metros in the country, Schertz has been nationally recognized for its family atmosphere, foresight and innovation, and commitment to economic prosperity and workforce opportunities. A welcoming community for all, Schertz is also known for its high quality of life, safe neighborhoods, and prosperous business industries. Founded in 1958, Schertz is home to over 43,000 residents and hundreds of thriving businesses. 39 13 CITY OF SCHERTZ 14 City Secretary 77 Public Affairs 79 Engineering 81 Police 83 Fire 85 Building Inspections 87 Neighborhood Services 89 Streets 91 Parks, Recreations & Community Services 93 Pools 95 Event Facilities 96 Library 98 Information Technology 100 Human Resources 102 Finance 104 Purchasing & Asset Management 106 Fleet Services 108 Facility Services 110 City Assistance 112 Court Restricted 114 Interest & Sinking Fund 115 Summary 116 Debt Summary 117 Bond Detail 119 Water & Sewer 144 Summary 145 Supplemental Requests 146 Water & Sewer Utility Billing 147 Water & Sewer Administration 149 Capital Recovery Fund (Water)151 Capital Recovery Fund (Sewer)152 Debt Summary 153 Bond Detail 154 Drainage 166 Summary 167 Supplemental Requests 170 Budget Structure 17-18 Vision, Mission, Values, Goals 19 Strategic Plan 20-21 Organizational Chart 22 Fund Descriptons & Fund Structure 23-25 Budget Process 26-28 Budget Calendar 29-30 Budget Message & Highlights 31-59 General Fund 60 Summary 61 Supplemental Requests 63 Non Departmental 65 City Council 66 City Manager 67 Municipal Court 68 311/Customer Relations 70 Planning & Zoning 72 Legal Services 74 Economic Development 75 CITY OF SCHERTZ TABLE OF CONTENTS 15 Supplemental Requests 175 Schertz Economic Development Corporation 176 Summary 178 Special Revenue Funds 179 Special Events 180 Public Educational, and Government (PEG) Access Fund 181 Supplemental Requests 182 Hotel/Motel Occupancy Tax 183 Supplemental Requests 184 Park Fund 185 Tree Mitigation 186 Roadway Impact Fee Area 1 187 Roadway Impact Fee Area 2 188 Roadway Impact Fee Area 3 189 Historical Committee 192 Capital Imrovements Program 193 General Government 195 Drainage/Wastewater/ Water 198 Appendicies 200 Position Authorization 201 Position List by Grade 206 Unified Pay Table 209 Public Safety Pay Table 210 Statistical Information 212 Financial Policies 214 Bond Rating 231 Glossary 234 Emergency Medical Services 171 Summary 172 Roadway Impact Fee Area 4 190 Library Fund 191 CITY OF SCHERTZ TABLE OF CONTENTS 16 17 18 19 20 21 ORGANIZATIONAL CHART CITY OF SCHERTZ City Council CityManagerSteveWilliams MunicipalCourt JudgeDarrellDullnig CitySecretarySheilaEdmondson Deputy CityManagerBrian James EMS ChiefJason Mabbitt Assistant City ManagerSarahGonzalez Police ChiefJim Lowery Fire ChiefGreg Rodgers EconomicDevelopmentScott Wayman Planning &CommunityDevelopmentLesa Wood Public WorksLarry Busch EngineeringKathy Woodlee Internal ServicesDawniecia L.Hardin Council Appointed Officials Executive Team Directors Parks &RecreationLauren Shrum Public AffairsKrystal Haynes HumanResourcesJessica Kurz FinanceJames Walters LibraryLizzi Bertoia City of Schertz Residents ProsecutingAttorney CityAttorney 22 23 24 25 26 27 28 29 30 31 32 33 34 CITY OF SCHERTZ BUDGET FY 2025-26 MESSAGE & HIGHLIGHTS The FY 2025-26 budget was put together using these resources and follows the 5 budget priorities set by council and staff, including, in no specific order: Staff Compensation – To attract and retain high-quality employees, the budget includes adjustments to maintain competitive compensation levels across all departments. This investment in our workforce recognizes the vital role City employees play in delivering exceptional service to our community. Street Maintenance & Repair to improve the safety of those who drive on our roads and to improve the general appearance of the City Street Maintenance and Repair - Maintaining the safety and quality of our transportation infrastructure remains a core service priority. The budget dedicates additional resources to pavement preservation, street rehabilitation, and repair projects that enhance mobility and extend the useful life of our roadways. Capital Improvement Program (CIP) - The budget continues to advance our multi- year Capital Improvement Program, funding critical projects that support growth, improve quality of life, and ensure the reliability of essential public assets. These investments reflect a balanced approach between current infrastructure needs and future community demands. Increasing Staffing Levels - As service demands and community expectations grow, the budget strategically adds new positions in key departments to improve operational capacity, customer service, and responsiveness. These targeted staffing increases will enhance the City's ability to meet present and emerging needs effectively. New and Remodeled Facilities - The budget supports planning, design, and construction efforts for new and remodeled facilities that improve service delivery, employee efficiency, and public accessibility. These projects underscore our commitment to maintaining functional, modern, and safe spaces for both employees and residents. Citywide, the budget funds the Merit program for non-uniformed public safety personnel and the Step program for non-uniformed. These programs move employees within their pay range but do not affect the starting wages of new employees. Non-uniformed employees will be eligible for a 0-4% increase based on performance, and uniformed public safety employees could receive a 4% increase based on the tenure schedule. These changes are planned to take effect midyear and cost $784,000. 35 CITY OF SCHERTZ BUDGET FY 2025-26 MESSAGE & HIGHLIGHTS Staff also proposed a change in medical insurance provider, along with a plan change that prevents any increase in premiums for 2026, allowing for additional expenditures to be placed on other funding requests. Street maintenance and improvements are scheduled and prioritized based on road conditions and the funding available. Large projects are identified individually due to the size and scope of the project, and are more challenging to raise funding for. Smaller maintenance-type projects are grouped together for contract and funding purposes. Projects in this group fall into the Streets Preservation and Maintenance program, or SPAM. The General Fund has $650,000 budgeted for street maintenance and staff plans to utilize $53,889,496 of existing bond funds, SEDC contributions, and grants to complete the following: 2024 SPAM list of roads Lookout Road reconstruction Main Street improvements Lower Seguin Road reconstruction 2025 SPAM projects Kramer Farm Subdivision rehabilitation Boenig Drive rehabilitation New street projects to start based on available funding include 2026 SPAM streets, Northcliffe’s Country Club Blvd, and Savannah Drive. The Capital Improvements Program (CIP) that includes Streets, Parks, Facilities, Water/Wastewater, and Drainage projects is updated and adopted by Council along with the budget. Streets, Parks, and Facilities are funded by property and sales taxes, while Drainage, Water, and Wastewater are funded by fees related to those services. Staff selects and schedules projects to minimize fluctuations to the tax rate. These assets included land, buildings, roads, bridges, and water and sewer infrastructure. The City of Schertz gathers information via traffic counts and water & sewer usage regularly to monitor aging infrastructure and plan for future capital projects. 36 CITY OF SCHERTZ BUDGET FY 2025-26 MESSAGE & HIGHLIGHTS Water/Wastewater and Drainage projects and debt are funded by the Water, Sewer, and Drainage fees, respectively. These fees are reviewed and 5-year rate plans are adopted by Council in order to fund operations and the CIP projects. These rate plans are often updated annually in order to utilize the most accurate information and minimize rate increases. The full CIP can be found at the end of this budget document. For equipment, vehicles, small land purchases, and other assets or improvements over $5,000 that are too small to be in the CIP, the City budgets these capital expenditures in each of the operating funds from which the assets will be used and funded by annual revenues or reserves. However, there are some purchases done by lease agreements when staff determine it is beneficial for the city to do so. The City added 26 positions for FY 2025-26. These included 10 for the General Fund, 6 for the Water & Sewer Fund, 4 for the EMS Fund, and 6 for the Drainage Fund. The General Fund added 6 Firefighters to complete the staffing at the upcoming Fire Station 4, an Assistant City Secretary to assist with the existing operations, a Senior Center Supervisor with the transition of the Senior Center operations to the City, and an Athletics Coordinator and Recreation Specialist with the transition of the Maske Road Soccer Complex operations to the City. The Water & Sewer Fund added another crew, which consists of 3 Worker I’s, a Worker II, and a Crew Leader. Also added was an additional Worker I that could act as a floater position to assist any crew that is short that day. The EMS Fund added 4 EMTs to operate the Medic 8 and Medic 9 ambulances during peak hours to ensure lower response times and additional public safety. The Drainage Fund added another crew that includes 3 Worker I’s, a Worker II, and a Crew Leader to increase maintenance of existing drainage ways to reduce the threat of flooding. Also added was a Floodplain Manager to help with mandated drainage reporting to state and federal agencies as well as to manage the long-term plans to increase the drainage system capacity in the City and reduce the risk of flooding and loss of life and property. 37 CITY OF SCHERTZ BUDGET FY 2025-26 MESSAGE & HIGHLIGHTS Overall, staff identified several challenges in meeting these budget goals. They include the loss of property value in residential homesteads in Guadalupe County, funding not keeping pace with growth in service demand for the Schertz Emergency Medical Services (EMS), and a Drainage Fee that does not raise the amount of funds required to maintain the existing drainage channels and extend or create new channels necessary to protect the city. To address these identified challenges, the budget proposal looks to make up the decrease in property values by delaying some capital replacement until FY 2026-27. These replacements that were delayed have all been reviewed and approved by Fleet, as staff reviews the existing replacement timelines to be more efficient. The EMS Director has approached each of their contracted service areas and has negotiated additional funding to help make up the existing operating deficit. The Drainage Fee is proposed to increase to cover the additional personnel required to maintain the existing drainage system and plan for expansions. From the original Proposed Budget to the Adopted, Council approved a 1% increase in the pay table that would affect all employees’ wages, effective October 2025. The final budget also includes a one-time additional $415,000 for traffic safety projects and sidewalk improvements. These programs were funded by a tax rate increase of 1.1% to $0.5118 per $100 of valuation. 38 39 CITY OF SCHERTZ BUDGET FY 2025/2026 General Fund Interest & Sinking Fund Water & Sewer Fund Drainage Fund EMS Fund SEDC Fund Special Revenue Funds Grand Total REVENUE SUMMARY Property Tax $ 21,734,288 $ 10,270,000 $ -$ -$ -$ -$-$ 32,004,288 Sales Tax 15,485,000 - - - - 7,668,608 -$ 23,153,608 Other Tax 88,020 - - - - -1,100,000 $ 1,188,020 Franchises 2,692,000 -350,000 - - - 64,000 $ 3,106,000 Permits & Licenses 2,065,700 - - 6,000 - - - $ 2,071,700 Fees 2,429,489 -33,896,500 2,260,000 11,511,704 -2,724,000 $ 52,821,693 Fines 407,840 - - - - - - $ 407,840 Inter-jurisdictional 2,349,706 - - - 5,406,682 - - $ 7,756,388 Inter-Fund Transfers 3,493,398 -180,000 18,283 - - 10,750 $ 3,702,431 Investment Income 950,000 105,000 520,000 32,000 -1,260,000 340,515 $ 3,207,515 Miscellaneous 1,119,975 100,000 444,978 -142,000 -484,900 $ 2,291,853 TOTAL REVENUES 52,815,416 10,475,000 35,391,478 2,316,283 17,060,386 8,928,608 4,724,165 131,711,336 Beginning Fund Balances 16,920,631 1,249,280 33,011,225 1,139,153 (329,199) 26,808,879 21,870,032 100,670,001 Total Available Resouces $ 69,736,047 $ 11,724,280 $ 68,402,703 $ 3,455,436 $ 16,731,187 $ 35,737,487 $ 26,594,197 $ 232,381,337 EXPENDITURE SUMMARY General Government 8,998,128$ 4,200$ 1,603,726$ -$ -$ 16,701,463$ 185,675$ 27,493,192$ Public Safety 25,853,310 - - - - - - 25,853,310$ Public Works 3,036,616 - 30,281,466 2,823,740 17,234,721 - 118,000 53,494,543$ Parks & Recreation 4,347,752 - -- - - 185,000 4,532,752$ Cultural 1,558,704 - -- - - 90,750 1,649,454$ Internal Service 10,406,736 - -- - - - 10,406,736$ Miscellaneous/Projects 285,687 2,250,000 64,000 2,599,687$ Debt Service: Principal -7,055,000 1,700,000 - - - - 8,755,000$ Interest -4,486,012 891,412 - - - - 5,377,424$ TOTAL EXPENDITURES 54,486,933 11,545,212 36,726,604 2,823,740 17,234,721 16,701,463 643,425 140,162,098 Ending Fund Balance 15,249,113 179,068 31,676,099 631,696 (503,534) 19,036,024 25,950,772 92,219,239 Total Fund Commitments 69,736,047$ 11,724,280$ 68,402,703$ 3,455,436$ 16,731,187$ 35,737,487$ 26,594,197$ 232,381,337$ CONSOLIDATED BUDGET SUMMARY BY FUND GROUP 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 DEPARTMENT: 151 CITY MANAGER FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION The City Manager serves under the policy direction of the City Council and provides the leadership for implementation of the City Council's policies to ensure residents, businesses, and visitors receive exceptional City services and that Schertz maintains a high quality of life. The City Manager's Office facilitates the coordination and implementation of City Council policy direction, provides administration of the organization, and develops methods for the effective and efficient delivery of services to the community. GOALS FOR FY 2025-26 BUDGET FY 2025/2026 • • • • • • •Goal 1 : Staff Compensation •Goal 2: Street Maintenance & Repair•Goal 3: Capital Improvement Program•Goal 4: Increase Staffing Levels•Goal 5: New/Remodeled Facilities BUDGET HIGHLIGHTS No departmental changes in 2025-26. 2022-23 Budget Actual Personnel $1,268,219 Supplies and Equipment 1,464 Operating Expenses 1,786 Professional Services 0 Capital Outlay 0 Total $1,271,469 Authorized Positions 4 CITY OF SCHERTZ • • • • • • 2023-24 Actual $1,133,903 661 2,697 0 0 $1,137,261 4 2024-25 2025-26 Estimate Budget $1,067,488 $1,026,058 1,470 1,470 2,177 4,960 0 0 85 0 $1,071,220 $1,032,488 4 4 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 BUDGET FY 2025/2026 CITY OF SCHERTZ DEPARTMENT: PLANNING AND COMMUNITY DEVELOPMENT DIVISION: 258 BUILDING INSPECTIONS FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION The Building Inspections Division assists customers seeking permits and inspections for various residential and commercial construction projects. The Division is responsible for maintaining the health, safety, and welfare of the community through professional review of permits, building plans and performing inspections to ensure a safe and attractive community that is consistent with the City’s adopted codes and ordinances while providing a courteous, professional and positive customer service experience. GOALS FOR FY 2025-26 •The Building Inspections Division supports the Strategic Goal of Safe and Livable Community by completing life safety and building code plan reviews on all commercial and residential construction projects to ensure public safety and welfare by completing 90% of all building plan reviews before the required deadline. •The Building Inspections Division supports the Strategic Goal of Safe and Livable Community by completing life safety and building code inspections on all commercial and residential construction projects to ensure public safety and welfare by performing 100% of all requested building inspections received by the department no later than 6:00 am within 1 business day. •The Building Inspections Division supports the Strategic Goal of Sense of Community by actively engaging and communicating with the community on building safety in the Annual National Building Safety Month Campaign through proclamation, social media and in-person through 12 events. BUDGET HIGHLIGHTS No departmental changes in 2025-26. 87 BUDGET FY 2025/2026 CITY OF SCHERTZ Budget 2022-23 Actual 2023-24 Actual 2024-25 Estimate 2025-26 Budget Personnel Services $1,056,532 $1,261,620 $1,388,161 $1,402,137 Supplies and Equipment 9,486 4,282 5,460 5,460 Utility Services 8,118 9,270 7,200 7,200 Operating Expenses 248 284 887 10,850 Professional Services 20,250 27,450 70,000 70,000 Capital Outlay 46,612 0 49,000 0 Total $1,141,246 $1,302,906 $1,502,708 $1,495,647 Activity Measures Building Safety Month – Events/Activities 8 11 11 12 % of Building Inspections completed by due date 100% 100% 100% 100% % of Building Plan reviews completed before due date 89.48% 93.23 97.73% 90% New Residential Construction permits issued 296 383 400 400 New Commercial Construction permits issued 12 25 30 30 All other permits 2,984 2,755 2,900 3,000 Inspections/Reinspection 12,405 14,120 25,000 20,000 Authorized Positions 14 14 14 14 88 89 90 91 92 BUDGET FY 2025/2026 • • • • • • DEPARTMENT: 460 PARKS, RECREATION AND COMMUNITY SERVICES FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION The Parks, Recreation, and Community Services department oversees the maintenance and management of park land, to include the maintenance of municipal facilities, creek ways, swimming pools, splashpads, park irrigation systems, trails, restrooms, pavilions, open space, playground equipment, benches, picnic tables, lighting, landscaping, trees, and oversight of athletic field maintenance by sports associations (Buffalo Valley Youth Association and Schertz Youth Soccer Alliance). Acquires, designs, constructs, and renovates existing and additional park land and facilities. It provides citizen input and communication venues utilizing the Parks and Recreation Advisory Board, community surveys, and community meetings. It plans and implements special events, recreation programs, and parades. GOALS FOR FY 2025-26 •To support the Sense of Community goal of the strategic plan by hosting events that create a sense of place and community, we will plan and implement various special events, parades, park grand openings, marketing campaigns, nature education programs, and youth and adult sports.•To support the Safe and Livable Community goal of the strategic plan by promoting environmental stewardship and health, we will publish a Parks & Recreation FUN Guide three times a year to promote available programs to residents. BUDGET HIGHLIGHTS The FY 2025-26 Budget will increase 12.8% from the FY 2024-25 year-end estimate. This increase is due to transition of full operations for the Schertz Soccer Complex and Schertz Senior Center to Parks department. CITY OF SCHERTZ • • • • • • 93 94 BUDGET FY 2025/2026 CITY OF SCHERTZ DEPARTMENT: PARKS, RECREATION, AND COMMUNITY SERVICES DIVISION: 463 POOLS FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION The management and maintenance of two (2) outdoor pools and one splash pad including the maintenance of swimming facilities, pumping systems, and related aquatic programs designed to encourage safe use and professional management of these facilities. Provide contractual oversight of the management, programming, and maintenance of the Schertz Aquatics Center. Provide citizen input and communication venues utilizing the Parks and Recreation Advisory Board, surveys, and community meetings. GOALS FOR FY 2025-26 •To support the Sense of Community goal of the strategic plan by creating a sense of place and community with the operations of the public pool with a goal of annual attendance of 11,600 entries. BUDGET HIGHLIGHTS No departmental changes in 2025-26. Budget 2022-23 Actual 2023-24 Actual 2024-25 Estimate 2025-26 Budget $13,337 $39,358 $36,000 $33,000 40,316 63,789 35,000 36,345 508,412 568,624 597,023 597,023 Supplies and Equipment Utility Services Repairs and Maintenance Total $562,064 $671,771 $668,023 $666,368 Activity Measures 2022-23 Actual 2023-24 Actual 2024-25 Estimate 2025-26 Budget $22,024 $22,024 $22,024 $22,000 $6,495 $6,495 $6,495 $4,000 11,651 11,651 11,651 11,600 78,000 78,000 78,000 78,000 $14.25 $14.25 $14.25 $13.16 Single Entry Pool Fees Season Pool Pass Sales Total Attendance Pickrell Pool Total Attendance Schertz Aquatics Ctr Cost per resident for Pool Operations (Includes Schertz Aquatics Center) 95 96 97 BUDGET FY 2025/2026 CITY OF SCHERTZ DEPARTMENT: 665 LIBRARY FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION The Schertz Public Library supports life-long learning, literacy and recreation for library materials in print, audiovisual and digital formats for users of all ages. It encourages the love of reading and learning by providing story time, special event programs, and various other literacy-based programs for infants, children and teens, and enriches the lives of adults by providing instructional and recreational programming in high-interest areas such as technology, health and fitness, financial planning, and crafts. The library acts as a community hub by providing meeting and study spaces to individuals and community groups, and provides public access to technology including computers, the Internet, wi-fi and printers, as well as to online employment, business and educational resources. The library’s primary service area includes more than 126,000 people in the Cities of Schertz, Cibolo and Selma, and Guadalupe County. GOALS FOR 2025-26 •The Library supports the Strategic Goal of Sense of Community’s objective of growing quality of life programs by increasing total circulation by enhancing patron engagement with the library’s purchased eResources. The goal is to achieve a 10% increase in customer activity based on tracked sessions and checkouts over the next year. •The Library supports the Strategic Goal of Sense of Community’s objective of growing quality of life programs by emphasizing literacy programming and services, with a goal of increasing reading challenge completions by 8%. •The Library supports the Strategic Goal of Sustainable Government’s objective of recruiting, developing, and retaining a qualified, competent, and diverse municipal workforce by expanding our volunteer opportunities for adult volunteers with a goal of training and onboarding 15 new volunteers annually. •The Library supports the Strategic Goal of Sense of Community’s objective of actively engaging and communicating with our residents and stakeholders by increasing marketing of the library and its resources and actively connecting with patrons on social media, with a goal of increasing interactions on social media by 10%. BUDGET HIGHLIGHTS The FY 2025-26 Budget will increase 4.9% over the FY 2024-25 year-end estimate due to capital outlay in 2025-26. 98 99 100 101 102 103 104 105 106 107 108 109 BUDGET FY 2025/2026 CITY OF SCHERTZ DEPARTMENT: INTERNAL SERVICES DIVISION: 878 Facility Services FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION Facility Services supports and maintains City facilities. In addition, Facility Services provides set up for events such as Parks Events (Jubilee, Christmas Tree lighting, parades), Employee Memorial Ceremony, City Council, Planning and Zoning, various Boards and Commissions, Department meetings, Municipal Court, training seminars, elections, groundbreaking ceremonies, and other special events. GOALS FOR FY 2025-26 •The Facility Services Division supports the Strategic Goal of Infrastructure Investment by supporting strategic investment in city facilities by performing routine scheduled maintenance of city facilities with a goal of reducing emergency work orders (keeping emergency and miscellaneous work orders to 1000 or less). •The Facility Services Division supports the Strategic Goal of Infrastructure Investment by supporting strategic investment in city facilities by converting fluorescent lighting to LED lights and replacing old HVAC equipment with more energy efficient equipment, to reduce the watt usage in the City. •The Facility Services Division supports the Strategic Goal of having a Safe and Livable city by managing the cleaning contract for city buildings and making sure routine cleanings are taking place, trash is being removed from buildings and emergency cleanings occur in a timely manner. BUDGET HIGHLIGHTS No departmental changes in 2025-26. 110 111 112 113 BUDGET FY 2025/2026 CITY OF SCHERTZ DEPARTMENT: 910 COURT RESTRICTED FUNDS FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION The court security fee and court technology fees are revenues that are restricted on use. The court technology must only be used to purchase new or replacement devices to improve or maintain the efficiency of the Municipal Court. Approved purchases are computers, servers where court files are stored and computerized ticket writers. The court security fee can only be used to add or enhance security measures to the court room for the safety of staff and citizens. BUDGET HIGHLIGHTS The FY 2025-26 Budget will remain the same as the FY 2024-25 estimate. 2022-23 2023-24 2024-25 2025-26 Budget Actual Actual Estimate Budget $521 $1,380 $84,000 $84,000 0 0 9,000 9,000 Supplies and Equipment Operating Expenses Total $521 $1,380 $93,000 $93,000 114 115 BUDGET FY 2025/2026 CITY OF SCHERTZ FUND: 505 INTEREST & SINKING FUND DESCRIPTION This fund is used to account for the accumulation of resources for and the payment of general long term debt principal and interest on city debt. The Interest & Sinking (I&S) portion of the property taxes are directly deposited by the County Tax Assessor’s Office into this fund. BUDGET HIGHLIGHTS Revenues: Revenues for FY 2025-26 Budget increased 9.7% from the FY 2024- 25 estimate with higher property values and an increase in the I&S tax rate. Expenses: The FY 2025-26 Budget will increase 11.3% from the FY 2024-25 year-end estimate following the existing debt payment schedule. Budget 2022-23 Actual 2023-24 Actual 2024-25 Estimate 2025-26 Budget $7,710,299 3 105,397 181,935 $8,917,461 104,407 195,912 221,135 $9,250,000 0 111,000 100,000 $10,270,000 0 105,000 100,000 $7,997,634 $9,438,915 $9,461,000 $10,475,000 $4,200 $5,000 8,483,985 8,517,861 0 0 $4,200 10,237,433 0 $4,200 11,541,012 0 Revenue Taxes Fund Charges/Transfers Investment Income Miscellaneous Total Expenses Professional Services Debt Service Refund Debt Total Over/-Under $8,488,185 -$490,551 $8,522,861 $916,055 $10,241,633 -$780,633 $11,545,212 -$1,070,212 116 117 118 119 120 121 122 123 124 125 126 BUDGET FY 2025/2026 CITY OF SCHERTZ Date Principal Coupon Interest Debt Service Fiscal Total 02/01/26 635,000 2.120%20,564.00 655,564.00 08/01/26 13,833.00 13,833.00 09/30/26 669,397.00 02/01/27 645,000 2.120%13,833.00 658,833.00 08/01/27 6,996.00 6,996.00 09/30/27 665,829.00 02/01/28 660,000 2.120%6,996.00 666,996.00 08/01/28 - - 09/30/28 666,996.00 1,940,000$ 62,222.00$ 2,002,222.00$ 2,002,222.00$ CITY OF SCHERTZ General Obligation Refunding, Series 2018 Original Issue Amount $6,035,000 General Fund Purpose: Refunding Bonds Certificates of Obligation 2007, General Obligation and Refunding Bonds 2009, and General Obligation and Refunding Bonds 2010 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 BUDGET FY 2025/2026 CITY OF SCHERTZ FUND: 106 SPECIAL EVENTS DESCRIPTION The Special Events Fund is designated to monitor and manage funds appropriated to host community events, sponsored or co-sponsored, by the City of Schertz. Events include Kick Cancer/Walk for Life and the Hal Baldwin Scholarship Program. BUDGET HIGHLIGHTS Revenue: Revenue budget is now set at $55,000 each year and any additional covers event expenses. Expenses: The Special Events Fund FY 2025-26 Budget is set at $55,000 with no change in operations. 2022-23 2023-24 2024-25 2025-26 Budget Actual Actual Estimate Budget $147 $1,074 $0 $0 891 1,074 0 0 22,194 24,190 19,645 20,000 40,020 47,461 35,000 35,000 $63,253 $71,800 $54,645 $55,000 $22,195 $24,190 $19,645 $20,000 25,555 30,214 50,000 35,000 Revenues Fund Charges/Transfers Investment Income Kick Cancer Hal Baldwin Scholarship Total Expenses Kick Cancer Hal Baldwin Scholarship Total $47,749 $54,404 $69,645 $55,000 180 BUDGET FY 2025/2026 CITY OF SCHERTZ FUND: 110 Public, Educational, and Government (PEG) Access Fund DESCRIPTION The PEG Fund is dedicated to providing communication infrastructure in the City. This will allow the City to better reach the citizens with necessary information. This fund is commonly used for public access television and institutional network capacity. Currently the level of funding from the collected fees is not great enough to warrant a public access channel but could be used so in the future. BUDGET HIGHLIGHTS Revenue: Revenues for FY 2025-26 Budget are expected to to stay the same from the FY 2024-25 year-end estimates. Expenses: The PEG Fund FY 2025-26 Budget stayed the same $64,000 with the continued implementation of the communication master plan. Budget 2022-23 Actual 2023-24 Actual 2024-25 Estimate 2025-26 Budget Revenues $74,016 $63,969 $64,000 $64,000 $74,016 $63,969 $64,000 $64,000 $821,654 $65,286 $64,000 $64,000 Franchises Total Expenses Misc & Projects Total $821,654 $65,286 $64,000 $64,000 181 182 183 184 BUDGET FY 2025/2026 CITY OF SCHERTZ FUND: 317 PARK FUND DESCRIPTION The Park Fund is a special fund designated to monitor and manage funds for the management of the City of Schertz Urban Forest and capital improvements of the City of Schertz Park System. The Fund is composed of parkland dedication revenues. Revenues are derived from developer fees (in lieu of parkland dedication), local citizen groups, state, local nonprofit neighborhood associations, homeowners’ associations (HOA’s), regional non-profit grants, and donations. BUDGET HIGHLIGHTS Revenue: The revenue for FY 2025-26 Budget is expected to be $154,750 in anticipation of a new development which will pay into the fund. Expenses: The FY 2025-26 Budget is set at $100,000 to utilize incoming funds for park improvements. Budget 2022-23 Actual 2023-24 Actual 2024-25 Estimate 2025-26 Budget $203,500 $446,138 $150,000 $150,000 9,058 8,975 4,750 4,750 $212,558 $455,112 $154,750 $154,750 $0 $0 $0 $0 387,069 0 100,000 100,000 $387,069 $0 $100,000 $100,000 Revenue Fees Investment Income Total Expenses Professional Services Capital Outlay Total Over/-Under -$174,511 $455,122 $54,750 $54,750 185 BUDGET FY 2025/2026 CITY OF SCHERTZ FUND: 319 TREE MITIGATION DESCRIPTION Tree mitigation fund is a special fund that is derived from revenue from permits for tree removal issued in connection with a building permit, subdivision plan, and site plan. These funds are used to replace trees on City Parks, City owned property, public lands, and SCUCISD school property. BUDGET HIGHLIGHTS Revenue: The revenue for the FY 2025-26 Budget is expected to stay the same from 2024-25 year-end estimate. Expenses: The FY 2025-26 Budget stays the same from FY 2024-25 year-end estimate. Budget 2022-23 Actual 2023-24 Actual 2024-25 Estimate 2025-26 Budget $48,065 $555,380 $100,000 $100,000 35,599 62,728 49,250 49,250 $83,664 $618,108 $149,250 $149,250 $93,030 $81,429 $85,000 $85,000 $93,030 $81,429 $85,000 $85,000 Revenue Fees Investment Income Total Expenses Maintenance Services Total Over/-Under -$9,365 $536,679 $64,250 $64,250 186 187 188 189 190 191 192 193 194 CAPITAL IMPROVEMENTS PROGRAM 195 196 CAPITAL IMPROVEMENTS PROGRAM Additional project information and projections on future projects can be found in the FY 2025-26 Adopted CIP document. Operating Impacts: Fire Station 4 has had an operating impact as the City hires the new firefighters in groups in advance of the new station opening. Total staffing for the new station will be 12 employees: 3 Firefighters, 3 Fire Apparatus Operators (FAO), 2 Lieutenants, and a Battalion Chief. FY 2025-26 will see the hiring of the final 6 positions, all Firefighters, since the FAO promotions were done the previous year. These final positions will be hired toward the end of the year, with a grand total impact of $1,300,000 annually to open the new station. The additional Park acreage will be added to the existing mowing contract. Current estimates would be an additional $28,000 annually, including both parks. 197 Drainage Projects Drainage will have 2 projects going in FY 2025-26. Wendy Swan Drainage Improvements at $1,100,000 and FM 1518 City Park Underground Drainage Upgrade for $45,000. Both projects funding for the year will come from the Drainage Fund Reserve and will have no material operating impacts. Water and Wastewater Projects CAPITAL IMPROVEMENTS PROGRAM 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 FINANCIAL POLICIES Covenant Compliance The City will comply with all covenants stated in the bond ordinance, including providing for annual disclosure information and providing for material event notices. Arbitrage Rebate Monitoring and Reporting Arbitrage is the interest earned on the investment of bond proceeds above the interest paid on the debt. The City will maintain a system of recordkeeping and reporting to meet the arbitrage rebate compliance requirement of the IRS regulation. The recordkeeping shall include tracking project expenditures, interest earned on the bonds, calculating rebate payments, and remitting any rebatable earnings to the federal government in a timely manner in order to preserve the tax-exempt status of the outstanding debt. Arbitrage rebate calculations will be performed annually on all debt issues and the liability recorded for any positive arbitrage. Due to the specialized nature of the calculations, this function will typically be outsourced. Lease/Purchase Agreements The City will use lease/purchase agreements for the acquisition of equipment when it is cost-effective and provides for attractive terms. All lease purchase agreements will be approved by City Council no matter the dollar amount. CASH MANAGEMENT AND INVESTMENTS To maintain the City’s cash in such a manner so as to ensure the absolute safety of principal, to meet the liquidity needs of the City, and to achieve the highest possible yield. Investment Management 1. All aspects of cash/investment management shall be designed to ensure safety and integrity of the City’s financial assets. 2. Cash/Investment management activities shall be conducted in full compliance with prevailing local, state, and federal regulations. (See City’s Investment Policy and Strategy) 3. The City will utilize competitive quotes from approved broker/dealers, affording no special advantage to any individual or corporate member of the financial or investment community. 4. The City will only do business with City authorized broker/dealers and/or financial institutions as approved by Council and who have executed a written certification of their review of the City’s Investment Policy. 5. The City shall design and establish policies relating to a variety of cash/investment management issues, such as the eligibility and selection of various broker/dealers, safekeeping requirements, collateral requirements, delivery versus payment requirements, weighted average maturity requirements and other such aspects of the program, which necessitate standard setting in pursuit of appropriate prudence and enhanced protection of assets. (See City’s Investment Policy) 229 230 231 232 233 234 235 236 237 238 239