26-R-044 Annual Comprehensive Financial Report FY 2024-25RESOLUTION NO. 26-R-044
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING THE APPROVAL OF THE ANNUAL
COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR 2024-25.
WHEREAS, the City staff of the City of Schertz (the "City") has recommended that the
City Council approve the Annual Comprehensive Financial Report(ACFR) for Fiscal Year 2024-
25 ; and
WHEREAS, the Audit Committee has recommended that it is in the best interest of the
City to approve the Annual Comprehensive Financial Report for Fiscal Year 2024-25; and
WHEREAS, the City Council has determined that it is in the best interest of the City to
approve the Annual Comprehensive Financial Report for Fiscal Year 2024-25.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS THAT:
Section 1. The City Council hereby authorizes the approval of the Annual
Comprehensive Financial Report for Fiscal Year 2024-25, Exhibit A.
Section 2. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are
adopted as a part of the judgment and findings of the City Council.
Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved
herein.
Section 4. This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Section 5. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the
application of such provision to other persons and circumstances shall nevertheless be
valid, and the City Council hereby declares that this Resolution would have been enacted
without such invalid provision.
Section 6. It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public and public notice of the time, place, and
subject matter of the public business to be considered at such meeting, including this
Resolution, was given, all as required by Chapter 551, Texas Government Code, as
amended.
Section 7. This Resolution shall be in force and effect from and after its final
passage, and it is so resolved.
PASSED AND APPROVED, this jj�day of �� , 2026.
L
CITY OF SCHERTZ, TEXAS
Ralp odriguez, M or
ATTEST:
eila Edmondson, TRMC
City Secretary
Exhibit A
Annual Comprehensive Financial Report
September 30, 2025
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CITY OF SCHERTZ- Tx
ANNUAL
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COMPREHENSIVE
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2025
OFFICIALS ISSUING REPORT:
City Manager Director of Finance
Steve Williams James Walters
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CITY OF SCHERTZ, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the year ended September 30, 2025
TABLE OF CONTENTS
INTRODUCTORY SECTION
PAGE
Letter of Transmittal i-iv
City Officials v
Organizational Chart vi
GFOA Certificate of Achievement vii
FINANCIAL SECTION
Independent Auditor's Report
1-3
Management's Discussion and Analysis
5-14
Basic Financial Statements:
Government -Wide Financial Statements:
Statement of Net Position
17-18
Statement of Activities
20-21
Fund Financial Statements:
Balance Sheet — Governmental Funds
22-23
Reconciliation of Balance Sheet — Governmental Funds to
Statement of Net Position
24
Statement of Revenues, Expenditures and Changes
in Fund Balances — Governmental Funds
26-27
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds to
the Statement of Activities
28
Statement of Net Position — Proprietary Funds
29-30
Statement of Revenues, Expenses, and Changes in Net Position —
Proprietary Funds
31
Statement of Cash Flows — Proprietary Funds
32-33
Notes to Financial Statements
37-68
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CITY OF SCHERTZ, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the year ended September 30, 2025
TABLE OF CONTENTS
FINANCIAL SECTION (Continued)
PAGE
Required Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund Balance —
Budget and Actual — General Fund 70-71
Schedule of Revenues, Expenditures and Changes in Fund Balance —
Budget and Actual — Economic Development Corporation 72
Note to Budgetary Schedules 73
Schedule of Changes in Net Pension Liability and Related Ratios 74-75
Schedule of Employer Contributions 76-77
Schedule of Changes in TMRS Other Postemployment Benefit Liability and Related Ratios 78-79
Schedule of Changes in City Retiree Health Other Postemployment Benefit Liability
and Related Ratios 80-81
Other Supplementary Information:
Comparative Balance Sheets — General Fund
86
Comparative Schedules of Revenues, Expenditures, and Changes in Fund Balance —
General Fund 87
Comparative Balance Sheets — Economic Development Corporation
88
Comparative Schedules of Revenues, Expenditures, and Changes in Fund Balance —
Economic Development Corporation 89
Comparative Balance Sheets — Debt Service Fund 90
Schedules of Revenues, Expenditures, and Changes in Fund Balance —
Budget and Actual - Debt Service Fund 91
Comparative Balance Sheets — Capital Projects Fund
92
Comparative Schedules of Revenues, Expenditures, and Changes in Fund Balance —
Capital Projects Fund 93
Nonmajor Governmental Funds:
Combining Balance Sheet — Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balance — Nonmajor Governmental Funds
94-95
96-97
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CITY OF SCHERTZ, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the year ended September 30, 2025
TABLE OF CONTENTS
PAGE
FINANCIAL SECTION (Continued)
Other Supplementary Information (continued):
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget to Actual — Hotel Occupancy Fund
98
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget to Actual — Park Fund
99
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget to Actual — Tree Mitigation Fund
100
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Treasury Forfeitures Fund
101
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Justice Forfeitures Fund
102
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
State Forfeitures Fund
103
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual - Library Advisory Board
104
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual — Historical Committee Board
105
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Capital Recovery Roadways
106
TABLE
STATISTICAL SECTION (UNAUDITED)
Net Position by Component
1
110-111
Changes in Net Position
2
112-115
Fund Balances - Governmental Funds
3
116-117
Changes in Fund Balances - Governmental Funds
4
118-119
Governmental Funds Tax Revenues By Source
5
120-121
Total Water and Sewer Consumption and Rates
6
122
Principal Water and Sewer Consumers
7
123
Direct and Overlapping Property Tax Rates
8
124
Principal Property Taxpayers
9
125
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CITY OF SCHERTZ, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the year ended September 30, 2025
TABLE OF CONTENTS
TABLE
PAGE
STATISTICAL SECTION (Continued)
Property Tax Levies and Collections
10
126
Taxable Assessed Value
11
128-129
Ratios of Outstanding Debt by Type
12
130-131
Ratios of Net General Bonded Debt Outstanding
13
132-133
Direct and Overlapping Governmental Activities Debt
14
134
Debt Margin Information
15
136-137
Pledged Revenue Coverage
16
138
Demographic and Economic Statistics
17
139
Top Ten Principal Employers
18
140
Full -Time Equivalent City Governmental Employees by Function/Program
19
142-143
Operating Indicators by Function/Program
20
144-147
Capital Asset Statistics by Function/Program
21
148-149
COMPLIANCE SECTION
Independent Auditor's Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance With GovernmentAuditing Standards
153-154
Independent Auditor's Report on Compliance For Each Major Program and on
Internal Control Over Compliance Required by the Uniform Guidance
155-157
Schedule of Expenditures of Federal Awards
159
Notes to Schedule of Expenditures of Federal Awards
160
Schedule of Findings and Questioned Costs
161
Summary Schedule of Prior Audit Findings
162
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INTRODUCTORY SECTION
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SCHHERTZ ISERVICE
COMMUNITY
OPPORTUNITY
March 17, 2026
To the Honorable Mayor, City Council, and Citizens of the City of Schertz:
State law requires that local governments publish a complete set of financial statements presented in conformity
with generally accepted accounting principles in the United States of America (U.S. GAAP) and audited in
accordance with generally accepted auditing standards in the United States of America by a firm of licensed certified
public accountants. Pursuant to that requirement, we hereby issue the annual comprehensive financial report of the
City of Schertz for the fiscal year ended September 30, 2025.
This report consists of management's representations concerning the finances of the City of Schertz. Consequently,
management assumes full responsibility for the completeness and reliability of all the information presented in this
report. To provide a reasonable basis for making these representations, management of the City of Schertz has
established a comprehensive internal control framework that is designed both to protect the government's assets
from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Schertz's
financial statements in conformity with U.S. GAAP. Because the cost of internal controls should not outweigh their
benefits, the City of Schertz comprehensive framework of internal controls has been designed to provide reasonable
rather than absolute assurance that the financial statements will be free from material misstatement. As management,
we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material
aspects.
The City of Schertz's financial statements have been audited by ABIP, PC, a firm of licensed certified public
accountants. The goal of the independent audit was to provide reasonable assurance that financial statements of the
City of Schertz for the fiscal year ended September 30, 2025, are free of material misstatement. The independent
audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; assessing the accounting principles used and significant estimates made by management; and evaluating
the overall financial statement presentation. The independent auditor concluded, based on the audit, that there was
a reasonable basis for rendering an unmodified opinion that the City of Schertz's financial statements for the fiscal
year ended September 30, 2025, are fairly presented in conformity with U.S. GAAP. The independent auditor's
report is presented as the first component of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic
financial statements in the form of Management's Discussion and Analyss (MD&A). This letter of transmittal is
designed to complement MD&A and should be read in conjunction with it. The City of Schertz's MD&A can be
found immediately following the report of the independent auditors.
Profile of the Government
The City of Schertz, incorporated in 1958, is located in the central part of Texas, which is considered to be a top
growth area in the state, and one of the top growth area in the country. The City of Schertz currently occupies a land
area of 32.21 square miles with a population of 44,428 in 2024 according to the US Census Bureau. The City of
Schertz is empowered to levy a property tax on both real and personal properties located within its boundaries. It is
also empowered by state statue to expend its corporate limits by annexation, which occurs periodically when
deemed appropriate by the governing body.
1400 Schertz Parkway Schertz, Texas 78154 210.619.1000
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The City of Schertz has operated under the council-manager form of government since November 30, 1972.
Policymaking and legislative authority are vested in a City Council consisting of the Manor and seven at -large
councilmembers. The City Council is responsible for establishing public policy on City matters by the passage of
appropriate ordinances and resolutions. The City Manager is responsible for overseeing the day-to-day operations
of the government, implementing policy established by City Council, and for appointing the heads of the various
departments. The council is elected on a non -partisan basis. Council members serve three-year staggered terms,
with two council members elected every three years and then three council members elected the final three years in
the cycle. The mayor is elected to serve a three-year term.
The City of Schertz provides a full range of services, including police and fire protection, EMS services, library
services, the construction and maintenance of streets, recreational facilities, cultural events and water and sewer
The annual budget and five-year forecast serve as the foundation for the City of Schertz's financial planning and
control. All city departments are required to submit requests for appropriation to the City Manager by June of each
year. The City Manager uses these requests as the starting point for developing a proposed budget. The City
Manager then presents the proposed budget to the council for review in early August. The council then holds public
hearings and community meetings on the proposed budget and to adopt a final budget by September 30,'. The fiscal
year for the City of Schertz is from October 1 through September 30. The appropriated budget is prepared by each
department (e.g., police). The City Manager may make transfers of appropriations within a department. The City
Manager may make transfers between departments and funds with City Council approval. Budget to actual
comparisons are provided in this report for each individual governmental fund for which an appropriated annual
budget has been adopted. For the general fund, this comparison is presented on pages 70-72 as part of the required
supplementary information.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the
broader perspective of the specific environment within which the City of Schertz operates.
Local Economy
Economic growth in the City of Schertz remained strong in 2025. The surrounding metro area saw growth evidenced
by the Federal Reserve Bank of Dallas reporting the San Antonio Business -Cycle Index increase 1.83% annual year
over year for September 2025. This index has decreased below its long-term trend and continues to indicate
economic expansion, however, the rate of expansion is slowing as markets had started to expect an economic
downturn nationwide. As of December 2025, the unemployment rate for Texas was 3.7% and San Antonio -New
Braunfels area was lower at 3.9%. The City of Schertz mirrors the local area unemployment rate still indicating full
employment.
As another indicator of economic growth, the City of Schertz realized a 68.3% increase year -over -year in sales tax
collections during the fiscal year. This increase is due to limited time contributions that are above the normal
recurring sales tax collections and will cease in the second quarter of 2026. Without the additional one-time
contribution, the annual sales tax growth was 5.1%. The City's average long-term growth is 7.0% which indicates
the City is still growing above inflation but not at the average seen historically. This data mirrors the slowdown
seen in the Business Cycle index for the local economy is growing but at a reduced rate.
The City of Schertz economy may be starting to pick back up as new residential construction was strong in 2025,
more than tripling the amount of permit revenue on new home construction from 2023. New commercial
development was not as strong with only 67 permits issued, down from 99 in 2024. This development indicates
population growth and business growth could improve the Schertz economy in the coming years.
Industrial development continued along IH 35 with plans to construct 8 additional warehouse distribution buildings.
East Group currently operates 6 of these buildings on Lookout Road, and this expansion further strengthens Schertz'
industrial and logistics base.
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A new retail development has begun with the Schertz Station Shopping Center, the first major retail development
in 20 years. Final plans were completed in 2025 and construction continued on the 25,000 square feet of shopping
space anchored by Home Depot.
Lone -term Financial Planning. The community approved bond propositions in November 2010 for quality of life
projects which included an adequate facility, improvements to the baseball fields and soccer fields, building a new
animal adoption facility, and improvements to Main Street. The only remaining project is the Main Street
improvements, which is currently in the planning and engineering phase.
In November 2021, the City placed 1 bond proposition before voters totaling $15.45 million for Fire Station number
4 which passed. The funds for the new fire station were issued in 2022 and the fire engine and the land have been
purchased with engineering and design for the building are underway.
Current Year Budget Initiatives. For FY 2025-2026, the City had $415,000 for traffic safety projects, and $1.7
million in discretionary items that include IT upgrades and police and fire equipment replacements in the General
Fund.
This budget includes pay increases for employees totaling $1.2 million based on rising public sector wages,
performance, and tenure. This is broken down into a 1 % employment cost index increase for all employees effective
October and either a merit or non -uniformed public safety or a step increase for uniformed public safety employees
up to 4% effective mid -year.
There are 26 new positions approved in the budget including 10 in the General Fund, 6 Water & Sewer Fund, 4 in
EMS, and 6 in the Drainage Fund. The General Fund received 6 Firefighters to complete staffing for the upcoming
Fire Station 4, an Assistant City Secretary, a Senior Center Supervisor, an Athletic s Coordination, and a Recreation
Specialist. The Water & Sewer Fund was approved for 4 Water/Wastewater Worker I positions and Worker II. EMS
was approved for 4 EMTs while the Drainage Fund was approved for 3 Worker I, a Worker II, a Crew Leader, and
a Floodplain Manger.
Financial Information
Internal Control. Management is responsible for establishing and maintaining internal controls designed to ensure
that assets for the City fare protected from loss, theft or misuse and to provide adequate accounting information
compiled to allow for the preparation of financial statements in conformity with generally accepted accounting
principles for local governments as prescribed by the Governmental Accounting Standards Board (GASB), the
Financial Accounting Standards Board (FASB) and the American Institute of Certified Public Accountants
(AICPA). The internal control system is designed to provide reasonable, but not absolute assurance that these
objectives are met. The concept of reasonable assurance recognizes that the cost of an internal control should not
exceed the benefits derived from the internal control. The City utilizes financial accounting software which is
designed with a system of internal controls. These controls are continually being reevaluated to provide reasonable,
but not absolute, assurances.
Budget Controls. The City also utilizes budgetary controls. Legally expenditures cannot exceed the appropriated
amount. The objective of these budgetary controls is to ensure compliance with the adopted budget approved by the
City Council as mandated by the city charter and state law. The levels of budgetary control are established at the
line -item basis and at the fund level. Staff believes these controls help monitor and direct approved expenditures to
a level within the budget parameters which directly results in a strong financial performance.
Financial Results. Assets and fund balances continue to grow as the City grows and financial results remain strong.
While additional debt was issued during the year, Staff closely monitors and plans the amount of issuance to keep
steady debt ratios per capita, per revenue, and per operations tax rate to the debt tax rate. Examples of these ratios
can be found in the Statistical Section starting on page 110. A more detailed summary of the City's Financial
Performance is available in the Management Discussion and Analysis section on pages 5-14.
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Independent Audit. Every year an independent audit is performed of the general ledger, accounts, financial
records, and transactions of all city departments. The audit is completed by an independent certified public
accounting firm selected by the City Council. The City is in compliance with this requirement and the independent
auditor's report by ABIP, Certified Public Accountants, has been included in this report.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Schertz for its annual comprehensive financial
report for the fiscal year ended September 30, 2024. This was the 39 h consecutive year that the City as received
this prestigious award. In order to be awarded a Certificate of Achievement, the City must publish an easily readable
and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current annual comprehensive
financial report continue to meet the Certificate of Achievement Program's requirements and we will be submitting
it to the GFOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and dedicated services of the entire
staff of the finance department. We would like to express our appreciation to all members of the department who
assisted and contributed to the preparation of this report.
In conclusion, we would have none of the success we have enjoyed without the assistance of each and every staff
member, as well as the support and strategic direction from the Mayor and City Council during the strategic
planning, pre -budget, and budget approval process.
Respectfully submitted, %
7te�,e- ams �JamesP. Walters
City Manager Finance Director
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MAYOR
MAYOR PRO-TEM
CITY COUNCIL
CITY MANAGER
DIRECTOR OF FINANCE
CITY ATTORNEY
CITY OF SCHERTZ, TEXAS
CITY OFFICIALS
For the year ended September 30, 2025
CITY COUNCIL
RALPH GUTIERREZ
11182e101va21
MARK E. DAVIS
MICHELLE WATSON
PAUL MACALUSO
BENJAMIN GUERRERO
ROBERT WESTBROOK
ALLISON HEYWARD
STEVE WILLIAMS
JAMES WALTERS
DAN SANTEE
v
Citizens
Mayor
& City Council
Prosecuting . City Secretary'" . City Manager'
Attorney
Police Deputy City Assistant Citv
0 Manager 0 Manager
Is
Public. Works Park &
Recreation
Internal ServicesI= Library
Planning &
Community Finance
Development
Economic Human
Development Resources
Engineering = Public Affairs
Municipal court
Judge'
Fire Rescue
City Attorney'
Emergency
Medical Services
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Schertz
Texas
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
September 30, 2024
Executive Director/CEO
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FINANCIAL SECTION
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INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business -type activities,
each major fund and the aggregate remaining fund information of the City of Schertz, Texas (the City) as of and for
the year ended September 30, 2025, and the related notes to the financial statements, which collectively comprise
the City's basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business -type activities, each major fund and the aggregate
remaining fund information of the City as of September 30, 2025, and the respective changes in financial position,
and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
We did not audit the financial statements of the Schertz-Seguin Local Government Corporation, which represents
8.9 percent and 11.5 percent, respectively, of the assets and net position of the Water and Sewer Fund, and 8.7
percent and 11.4 percent, respectively, of the assets and net position of the business -type activities. Those statements
were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the
amounts included for Schertz-Seguin Local Government Corporation, is based solely on the report of the other
auditors.
Change in Accounting Principles
As described in note 1 to the financial statements, in 2025, the City adopted new accounting guidance,
Governmental Accounting Standards Board (GASB) Statement No. 100, Accounting Changes and Error
Corrections and GASB Statement No. 101, Compensated Absences. Our opinion is not modified with respect to
this matter.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Our responsibilities under those standards are further described in the
Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions.
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Responsibilities of Managementfor the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America; and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that
an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards
will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based
on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
City's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control -related matters that we
identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion
and analysis, budgetary comparison information, and pension and OPEB information be presented to supplement
the basic financial statements. Such information, although not part of the basic financial statements, is required by
the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management about the methods
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of preparing the information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City's basic financial statements. The combining and individual nomnajor fund financial statements and
schedules and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations,
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are
presented for purposes of additional analysis and are not a required part of the basic financial statements. Such
information is the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. The information has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other records used
to prepare the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion
the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual comprehensive financial report. The
other information comprises the introductory and statistical sections but does not include the basic financial
statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements,
or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude
that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 17, 2026, on our
consideration of the City's internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is
solely to describe the scope of our testing of internal control over financial reporting and compliance and the results
of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the City's internal control over financial reporting and compliance.
San Antonio, Texas
March 17, 2026
FINAL DRAFT
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
September 30, 2025
As management of the City of Schertz, we offer readers of the City's financial statements this narrative overview
and analysis of the financial activities for the City of Schertz for the fiscal year ended September 30, 2025. We
encourage readers to consider the information presented here in conjunction with additional information that we
have furnished in our letter of transmittal, which can be found in the introductory section of this report.
Financial Highlights
• The assets and deferred outflows of resources of the City of Schertz exceeded its liabilities and deferred inflows
of resources at the close of the fiscal year ending September 30, 2025, by $445,020,423 (net position). Of this
amount, $83,727,599 (unrestricted net position) may be used to meet the City's ongoing obligations to citizens
and creditors.
• The City's total net position increased by $67,116,291. This increase was from capital contributions.
• At the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of
$149,496,366, an increase of $34,661,007 in comparison with the prior year. The primary cause of this increase
was an increase in property and sales tax revenues that exceeded expenditure growth.
• At the end of the current fiscal year the combined total of the general fund assigned and unassigned fund
balances was $21,407,016 which is 47% of the general fund expenditures not including capital outlay. The fund
balance policy is to reserve at least a 26% balance.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The
City's basic financial statements are comprised of three components: 1) government -wide financial statements, 2)
fund financial statements, and 3) notes to financial statements. The annual comprehensive financial report (ACFR)
also contains other supplementary information in addition to the basic financial statements themselves.
GOVERNMENT -WIDE FINANCIAL STATEMENTS
The government -wide financial statements are designed to provide readers with a broad overview of the City's
finances, using accounting methods similar to a private -sector business.
The statement of net position presents information on all of the City's assets, deferred outflows, liabilities, and
deferred inflows, with the difference between the two reported as net position. Over time, increases or decreases in
net position may serve as a useful indicator of whether the financial position of the City of Schertz is improving or
deteriorating.
The statement of activities presents information showing how the City's net position changed during the most recent
fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some
items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but not used
vacation leave).
FINAL DRAFT
Both of the government -wide financial statements distinguish functions of the City of Schertz that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended
to recover all or a significant portion of their costs through user fees and charges (business -type activities). The
governmental activities of the City of Schertz include general government, public safety, streets and parks, health,
and culture and recreation. The business -type activities of the City of Schertz include a water and sewer department
and an emergency medical services department.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives. The City of Schertz, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements.
The funds of the City of Schertz can be divided into two categories: governmental and proprietary.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the government -wide
financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable
resources, as well as balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government's near -term financing requirements.
Because the focus of governmental funds are more narrow than that of the government -wide financial statements,
it is useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better understand
the long-term impact of the government's near -term financing decisions. Both the governmental fund balance sheet
and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City of Schertz maintains fifteen (15) individual governmental funds. Information is presented separately in
the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes
in fund balances for the general fund, the debt service fund, the economic development corporation, the capital
projects fund, and the American Recovery Plan Act fund, all of which are considered to be major funds. Data from
the other ten (10) governmental funds are combined into a single, aggregated nonmajor fund presentation. Individual
fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere
in this report.
Proprietary funds. The City maintains two types of proprietary funds. Enterprise funds are used to report the same
functions presented as business -type activities in the government -wide financial statements. The City of Schertz
uses enterprise funds to account for its water and sewer department and for its emergency medical services
department.
Proprietary funds provide the same type of information as the government -wide financial statements, only in more
detail. The proprietary fund financial statements provide separate information for the water and sewer department
and for the emergency medical services department, both of which are considered to be major funds of the City of
Schertz.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding
of the data provided in the government -wide and fund financial statements.
Other information. In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information concerning the City's general fund budgetary schedule. The City of
Schertz adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been
provided for the general fund to demonstrate compliance with this budget. The economic development corporation
also adopts an annual budget, and a comparison schedule for it also is provided in the required supplementary
information.
6
FINAL DRAFT
The combining statements referred to earlier in connection with nonmajor governmental funds are presented
immediately following the required supplementary information.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the
case of the City of Schertz, assets and deferred outflows exceeded liabilities and deferred inflows by $445,020,423
at the close of the most recent fiscal year. The largest portion of the City's total net position (67%) reflects its net
investment in capital assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire
those assets that is still outstanding, plus bond proceeds that have not yet been spent. The City of Schertz uses these
capital assets to provide services to citizens; consequently, these assets are not available for operational type of
future spending. Although the City's investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
An additional portion of the City's total net position (14%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position, $85,727,599, may be
used to meet the government's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City of Schertz is able to report positive balances in all three categories of
net position, both for the government as a whole, as well as for its separate governmental and business -type
activities. The same situation held true for the prior fiscal year.
Assets
Current and other assets
Capital assets
Total assets
Deferred outflows of resources
Liabilities
Other liabilities
Long-term liabilities
Total liabilities
Deferred inflows of resources
Net position
Net investment in capital assets
Restricted
Unrestricted
Total net position
TABLE 1
CITY OF SCHERTZ'S NET POSITION
GOVERNMENTAL BUSINESS -TYPE
ACTIVITIES ACTIVITIES TOTAL
2025 2024 2025 2024 2025 2024
157,098,554 $ 125,153,191 $
212,548,731 194,684, 599
369,647,285 319,837,790
6_979_911 7.156.716
98,066,644 S 66,639,490
10 054 M9 144 2nS 606
279 170_ 991 210. 945.096
7.771.UR 7.14R 40R
6,181,525 17,855,465 6,990,621 8,146,445
137,010,112 107,487,141 58,963,435 31,131,477
143,191,637 125,342,606 65,954,056 39,277,922
2.112.327 1.355.792 640.516 371.930
255,165,198 $ 191,792,681
392,602,980 338,890,205
647,768,178 530,682,886
9,150,781 9,505,144
13,172,146 26,001,910
195,973,547 138,618,618
209.145 693 164 670 52R
2,752,843 1,729,722
169,821,032 142,891,901 128,188,819 125,867,091 298,009,851 268,758,992
53,603,325 50,212,797 7,679,648 6,640,756 61,282,973 56,853,553
7,797,897 7,191,430 77,929,702 41,033,805 85,727,599 48,225,235
$ 231,222,254 $ 200,296,128 S 213,798,169 $ 173,541,652 $ 445,020,423 $ 373,837,780
The government's net position increased by $67,116,291 during the current fiscal year. The primary cause for the
increase was an increase in contributed capital; the City recognized approximately $51.4 million of capital
contribution revenue related to dedicated infrastructure assets and also experienced sharp increases in property and
sales taxes. These increases stem from the City's continued rapid population growth; continued new housing and
business developments resulted in increased assessed value for property taxes and resulted in the creation of
infrastructure that was dedicated to the City. The related population increases resulted in increased economic
activity that increased sales tax revenues.
7
FINAL DRAFT
The following table indicates changes in net position for governmental and business -type activities followed by
graphs displaying total revenues and expenses by type:
TABLE 2
CITY OF SCHERTZ'S CHANGES IN NET POSITION
REVENUES
Program revenues:
Charges for services $
Operating grants and contributions
Capital contributions
General revenues:
Property takes
Other taxes
Investment earnings
Miscellaneous
Total revenues ~
GOVERNMENTAL BUSINESS -TYPE
ACTIVITIES ACTIVITIES
2025 2024 2025 2024
TOTAL
2025 2024
5,441,220
$ 7,782,686 $
45,567,499 $
42,793,475
$ 51,008,719
S 50,576,161
3,657,665
3,579,794
-
3,657,665
3,579,794
18,408,023
3,293,373
33,036,134
8,431,343
51,444,157
11,724,716
27,717,962
27,147,745
-
-
27,717,962
27,147,745
37,539,175
23,393,401
-
-
37,539,175
23,393,401
5,704,453
5,569,055
3,977,901
4,535,559
9,682,354
10,104,614
781,729
1,119,844
974,786
781,729
2,094,630
99,250,227
71,885,898
82,581,534
56,735,163
181,831,761
128,621,061
EXPENSES
General government
16,388,166
8,678,145
16,388,166
8,678,145
Public safety
26,692,587
22,719,864
26,692,587
22,719,864
Public environment
8,145,230
8,802,846
8,145,230
8,802,846
Parks and recreation
5,208,597
5,539,108
5,208,597
5,539,108
Cultural
1,627,098
1,520,759
1,627,098
1,520,759
Administration
7,198,709
6,343,146
7,198,709
6,343,146
Interest and other fees
3,334,685
2,508,098
-
3,334,685
2,508,098
Water and sewer
-
-
33,234,866
32,088,184
33,234,866
32,088,184
EMS
-
12,885,532
11,718,474
12,885,532
11,718,474
Total expenses
68,595,072
56,111,966
46,120,398
43,806,658
114,715,470
99,918,624
Increases (decreases) in net
position before transfers
30,655,155
15,773,932
36,461,136
12,928,505
67,116,291
28,702,437
Transfers
169,768
-
(169,768)
Change in net position
30,824,923
15,773,932
36,291,368
12,928,505
67,116,291
28,702,437
NETPOSITION- BEGINNING
200,296,128
184,522,196
173,541,652
160,613,147
373,837,780
345,135,343
RESTATEMENT
101,203
3,965,149
-
4,066,352
NETPOSITION— ENDING
$ 231,222,254
$ 200,296,128 $
213,798,169 $
173,541,652
$ 445,020,423 $
373,837,780
8
FINAL DRAFT
GENERAL REVENUE BY SOURCE - GOVERNMENTAL ACTIVITIES
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
Total Revenues - Government Wide
11
1
In
Chargesfor
Operating
Capital
services
grants and
contributions
contributions
1111 11 was
Property Othertaxes Investment Miscellaneous
taxes earnings
it 2025 rr 2024
TOTAL EXPENSES - GOVERNMENTAL
Total Expenses - Government Wide
General Publicsafety Public Parksand
government environment recreation
■ 2025 : 2024
.
I F
Cultural
Adninistration Interestand
other fees
C
FINAL DRAFT
$50,000,000
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
S5,000,000
BUSINESS -TYPE REVENUES AND EXPENSES
Total Revenues - Business -Type
0 L Wr
Chargesfor services Capital contributions Investment earnings
■ 2025 2024
Total Expenses - Business -Type
Water and sewer
a 2025 ■ 2024
EMS
Miscellaneous
10
FINAL DRAFT
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, the City of Schertz uses fund accounting to ensure and demonstrate compliance with finance -
related legal requirements.
Governmental funds. The focus of the City' governmental funds is to provide information on near -term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City's financing
requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources
available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City' governmental funds reported combined fund balances of
$149,496,366. Of this amount $17,524,434 constitutes unassigned fund balance, which is available for spending at
the government's discretion. The remainder of fund balance is non -spendable, restricted, committed, or assigned to
indicate that it is not available for new spending because it has already been committed to pay debt service, for
capital improvement projects, and other assigned purposes.
The general fund is the main operating fund of the City of Schertz. At the end of the current fiscal year, unassigned
fund balance of the general fund was $17,788,211, while total fund balance was $24,418,544, an increase of $4.5
million from the prior year. Overall, the increase was caused by property, and sales tax revenues over budget by
$5.5 million and expenditures being under budget by $2.0 million. As a measure of the general fund's liquidity, it
may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures.
Unassigned fund balance represents 39% of total general fund expenditures, not including capital outlay.
The debt service fund has a total fund balance of $1,231,229, all of which is restricted for the payment of debt
service. The net decrease in fund balance during the current year in the debt service fund was $798,684. This
decrease was due to regular principal and interest payments on long-term debt exceeding interest and sinking
property tax revenue during the year. Over time, however, the debt service fund has sufficient cash and equivalents
on hand to remain liquid if tax revenues decrease.
The capital projects fund has a total fund balance of $67,641,341, an increase of $26.1 million. This was caused by
the issuance of the City's Series 2025 Certificates of Obligation.
The Economic Development Fund presents the activities of the Schertz Economic Development Corporation (the
SEDC), which promotes economic development activities using a portion of the City's sales tax revenue. At year
end, the SEDC fund reported an ending fund balance of $43,115,693, which is an increase of $2.8 million compared
to the prior year. The primary cause of this change was sales tax revenue growing faster than expenditures.
The American Rescue Plan Act Fund has total fund balance of $807,499, which consists of interest earned on the
funding received from the Coronavirus Local Fiscal Recovery Fund grant program and $5.3 million of revenue
recognized during the year. Amounts not spent as of year end are presented as unearned revenue until spent in
accordance with the terms of the grant agreement in future years.
Proprietary funds. The City' proprietary funds provide the same type of information found in the government -
wide financial statements, but in more detail. Unrestricted net position of water and sewer fund at the end of the
year amounted to $77.9 million, and those for the Schertz EMS fund amounted to a deficit of $955 thousand, which
are 268% and 7% of fund operating costs, respectively.
The water and sewer fund reported an increase in net position of $37.2 million. Approximately three quarters of
this increase related to revenue recognition for contributed infrastructure assets; the remaining portion of the
increase was from operating income, which was consistent with the prior year. Management's intent is to
accumulate operating surplus to fund construction of new water and sewer infrastructure in future years with less
reliance on bonded debt.
11
FINAL DRAFT
The Schertz EMS fund decreased net position by $895,346. Expenses increased by approximately 9% compared to
the prior year. Revenues were consistent to the prior year as a result of approximately the same number of ambulance
runs in the prior year. Expenses increased primarily from increased salaries that resulted from the compensation
study discussed previously.
GENERAL FUND BUDGETARY HIGHLIGHTS
The general fund expenditures were $1,990,656 less than the $49.9 million budget. Overall activity in the general
fund increased during the current year as the City emerged from COVID-19 pandemic, although the amount of
growth was less than expected. Revenues were $5.3 million more than budgeted, primarily due to sales tax revenue
increasing more than expected. Overall, ending fund balance in the general fund was $8.0 million higher than
budgeted.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The City's investment in capital assets for its governmental and business -type activities as of
September 30, 2025 amounts to $392,602,980 (net of accumulated depreciation), including several projects in
progress from voter approved bonds.
TABLE 3
CAPITAL ASSETS AT YEAR-END
(Net of accumulated depreciation)
GOVERNMENTAL
BUSINESS -TYPE
ACTIVITIES
ACTIVITIES
TOTAL
2025
2024
2025
2024
2025
2024
Land $
15,443,457 $
15,450,585 $
2,861,843 $
2,415,103
$ 18,305,300 $
17,865,688
Water rights
-
-
70,245
70,245
70,245
70,245
Buildings and improvements
72,448,767
67,671,372
4,103,606
3,725,152
76,552,373
71,396,524
Machinery, equipment and
vehicles
22,621,474
19,506,533
9,100,049
7,895,394
31,721,523
27,401,927
Infrastructure
194,375,915
175,820,607
180,190,441
143,743,449
374,566,356
319,564,056
Construction in progress
15,946,985
14,956,054
36,554,548
35,493,424
52,501,533
50,449,478
Accumulated depreciation
(108,287,867)
(98,720,552)
(52,826,483)
(49,137,161)
(161,114,350)
(147,857,713)
Total capital assets 5 212.548.731 $ 124.684.599 $ 180.054.249 $ 144.205.606 $ 392,602,980 S 338,890,201
Additional information on the City's capital assets can be found in note 2 to the basic financial statements.
12
FINAL DRAFT
Long-term liabilities. At the end of the current fiscal year, the City of Schertz had total long-term debt outstanding
of $170,769,325. The related principal and interest payment for the bonds backed by an annual ad valorem tax
levied against all taxable property within the City. The City of Schertz maintains an "AAA+" rating from Standard
and Poor's.
TABLE 4
OUTSTANDING LIABILITIES AT YEAR END
GOVERNMENTAL ACTIVITIES
BUS[NESSTYPE ACTIVITIES
TOTAL
2025
2024
2025
2024
2025
2024
General obligation bonds
$ 42,540,000 $
46,395,000
$ 1,940,000 $
2,750,000
$ 44,480,000 $
49,145,000
Certificate of obligation
66,500,000
42,275,000
46,550,000
21,150,000
113,050,000
63,425,000
Financing arrangements
27,307
54,614
81,922
163,843
109,229
218,457
Premium onbonds
6,850,688
5,763,094
3,293,508
1,954,620
10,144,196
7,717,714
Compensated absences
2,276,327
1,405,718
709,573
572,632
2,985,900
1,978,350
Totals
$ 118,194,322 $
95,893,426
$ 52,575,003 $
26,591,095
$ 170,769,325 $
122,484,521
Total debt increased compared to the prior year due to the issuance of the City's Series 2025 Certificates of
Obligation.
Additional information on the City's long-term liabilities can be found in note 2 to the basic financial statements.
ECONOMIC FACTORS AND CURRENT YEAR BUDGETS AND RATES
At the end of the fiscal year, the fund balance in the general fund increased to $24.4 million from $19.9 million
after the starting balance was increased $1.9 million due to restatements. There was a planned decrease in fund
balance budgeted of $2.6 million in the original adopted budget but due to the above expected performance of sales
taxes collected that decrease turned into a $4.5 million increase.
The sales tax increase was confirmed to be a limited increase due to unique business activity in the City beginning
in 2025 and may continue into the second quarter of 2026. The City is aware these increased sales tax payments
will not continue long term and is factoring this in to our financial forecasts and planning.
The City of Schertz has appropriated $1.7 million of the fund balance for spending in the 2026 fiscal year budget
in accordance to the City's fund balance policy in an effort to reduce the fund balance level. The approved tax rate
increased to $0.5118 from $0.4900 per $100 of valuation.
Each year the City updates its five-year budgeting forecast and has implemented a long-term debt model to assist
management in making informed financial decisions that will impact the community now and in the future. The
City's property tax base continues to expand at around 3% per year while the long term sales taxes are growing at
7% annually.
In 2025, the City of Schertz experienced continued growth in commercial development. Final plans for Schertz
Station were completed, and construction continued on the 250,000-square-foot retail center anchored by Home
Depot, located adjacent to the entertainment district initiated by EVO. The Schertz Economic Development
Corporation (EDC) supported the project with an initial $4,000,000 infrastructure investment to fund the extension
of Ripps Kruesler Drive. Additional incentive payments will begin once Home Depot opens in 2027.
On the industrial side, EastGroup Properties began development of eight warehouse distribution buildings.
EastGroup currently operates six buildings on Lookout Road, and this expansion further strengthens Schertz's
industrial and logistics base. As part of the agreement, the Schertz Economic Development Corporation (SEDC)
committed to reimburse EastGroup for nearly 10,000 linear feet of sewer line to connect with approximately 6,500
13
FINAL DRAFT
linear feet of sewer infrastructure previously committed to the Boomerang and Lovett developments. Together,
these improvements will extend sewer service to a significant portion of the city north of I11-35, from FM 3009 to
Friesenhahn Road.
The SEDC also committed to assisting the property owners of the retail center that includes Murdoch's Ranch &
Home Supply and Bob Mills Furniture by funding the extension of Four Oaks Drive. The 1,330-linear-foot roadway
extension will run north of Walmart and ultimately connect to Cibolo Valley Drive, improving access and
supporting continued growth in this active commercial corridor. The property owner is planning an additional
100,000 square feet of retail, office, and commercial development behind the existing center.
In addition to having the highest annual revenue on new residential building permits for the second year in a row
with $694,500 from 463 different permits.
Overall, the City of Schertz continues to be an extremely attractive option as a center for logistics and distribution
being along the west side IH 35 where the current industrial development is centered with residential and residential
businesses located along the east side. Continued development reinforces the City's projection of continued growth
in both the residential and commercial sectors of 3% and 7%, respectively.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City's finances for all those with an interest
in the government's finances. Questions should be addressed to the Office of the Finance Director, City of Schertz,
1400 Schertz Parkway, Schertz, Texas 78154.
14
FINAL DRAFT
BASIC FINANCIAL STATEMENTS
FINAL DRAFT
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
September 30, 2025
GOVERNMENTAL
BUSINESS -TYPE
ACTIVITIES
ACTIVITIES
TOTAL
ASSETS
Cash and cash equivalents
$ 139,792,981
$ 51,825,274
$ 191,618,255
Investments
5,057,298
1,268,106
6,325,404
Internal balances
-
-
-
Receivables - net of allowances:
Taxes
8,876,880
-
8,876,880
Accounts and other
2,206,976
8,939,385
11,146,361
Accrued interest
-
37,244
37,244
Prepaids
-
69,500
69,500
Inventories
171,259
295,316
466,575
Restricted assets:
Cash and cash equivalents
311,791
11,186,680
11,498,471
Service concession arrangement receivable:
-
-
-
Due within one year
90,909
-
90,909
Due in more than one year
590,460
-
590,460
Investment in joint venture
-
24,445,139
24,445,139
Capital assets:
Land
15,443,457
2,861,843
18,305,300
Water rights
-
70,245
70,245
Buildings and improvements
72,448,767
4,103,606
76,552,373
Equipment and vehicles
22,621,474
9,100,049
31,721,523
Infrastructure
194,375,915
180,190,441
374,566,356
Construction in progress
15,946,985
36,554,548
52,501,533
Accumulated depreciation
(108,287,867)
52,826,483)
(161,114,350)
Total assets
369,647,285
278,120,893
647,768,178
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on debt refunding
334,923
- 334,923
Deferred outflows related to OPEB
402,352
139,683 542,035
Deferred outflows related to pension
6,141,658
2,132,165 8,273,823
Total deferred outflows of resources
6,878,933
2,271,848 9,150,781
(continued)
The accompanying notes are an integral part of the financial statements.
17
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
LIABILITIES
Accounts payable
Accrued liabilities
Retainage payable
Due to other governments
Unearned revenue
Accrued interest payable
Customer deposits
Noncurrent liabilities:
Due within one year.
Compensated absences
Total OPEB liability
Service concession arrangement
Long-term debt
Due in more than one year:
Compensated absences
Total OPEB liability
Net pension liability
Service concession arrangement
Long-term debt
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred service concession arrangement
Deferred inflows related to pension
Deferred inflows related to TMRS SDBF
Deferred inflows related to retiree healthcare
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for:
Police and nmnicipal court
PEG capital fees
Tourism development
Economic development
Parks and tree mitigation
Debt service
Scholarships and otherpurposes
Construction
Unrestricted
Total net position
September 30, 2025
GOVERNMENTAL
BUSINESS -TYPE
ACTMTIES
ACTIVITIES
TOTAL
$ 2,752,416
$ 4,371,130
$ 7,123,546
909,766
376,451
1,286,217
134,024
1,014,481
1,148,505
85,382
-
85,382
1,306,875
302,260
1,609,135
950,946
397,770
1,348,716
42,116
528,529
570,645
455,265
91,273
55,241
7,526,508
1,821,063
2,336,743
15,973,737
358,795
108,391,487
143,191,637
267,333
968,687
238,946
637,361
2,112,327
169,821,032
1,616,214
135,581
4,316,603
43,923,192
2,017,655
1,231,229
362,851
7.797.897
$ 231,222,254
141,914
32,874
2,385,000
567,659
810,048
5,545,510
49,480,430
65 954,056
304,223
336,293
640,516
128,188,819
7,679,648
77,929,702
$ 213,798,169
The accompanying notes are an integral part of the financial statements.
597,179
124,147
55,241
9,911,508
2,388,722
3,146,791
21,519,247
358,795
157,871,917
209145 693
267,333
968,687
543,169
973,654
2,752,843
298,009,851
1,616,214
135,581
4,316,603
43,923,192
2,017,655
1,231,229
362,851
7,679,648
85,727,599
$ 445,020,423
18
FINAL DRAFT
FUNCTIONS/PROGRAM S
Primary government
Governmental activities
General government
Public safety
Public environment
Parks and recreation
Cultural
Administration
Interest
CITY OF SCHERTZ, TEXAS
STATEMENT OF ACTIVITIES
For the year ended September 30, 2025
PROGRAM REVENUE
OPERATING
CAPITAL
CHARGESFOR
GRANTSAND
GRANTSAND
EXPENSES
SERVICES
CONTRIBUTIONS
CONTRIBUTIONS
$ 16,388,166
$ 3,346,260
$ 260,735
$ -
26,692,587
765,098
2,546,879
-
8,145,230
177,313
724,878
18,408,023
5,208,597
569,727
100,000
-
1,627,098
452,580
25,173
-
7,198,709
130,242
-
-
3,334,685
-
-
-
Total governmental activities 68,595,072 5A41,220 3,657,665 18,408,023
Business -type activities
Water and sewer 33,234,866 33,577,314 - 33,036,134
EMS 12,885,532 11,990,185
Total bus in ess-type activities 46,120,398 45.5E,499
Total government $ 114,715,470 $ 51,008,719
General revenues
Taxes:
Ad valorem
Sales taxes
Franchise fees
Hotel/motel taxes
Mixed drink
Investment earnings
Miscellaneous
Transfers
Total general revenues
Change in net position
Net position - beginning
Restatement
Net position - ending
33,036,134
$ 3,657,665 $ 51,444,157
The accompanying notes are an integral part of the financial statements.
Kc
FINAL DRAFT
NET (EXPENSES) REVENUES AND CHANGES IN NET POSITION
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS -TYPE
ACTIVITIES ACTIVITIES
TOTAL
$ (12,781,171) $ -
$ (12,781,171)
(23,380,610) -
(23,380,610)
11,164,984 -
11,164,984
(4,538,870) -
(4,538,870)
(1,149,345) -
(1,149,345)
(7,068,467) -
(7,068,467)
(3,334,685) -
(3,334,685)
(41,088,164) -
(41,088.164)
- 33,378,582
33,378,582
- (895,347)
(895,347)
32,483,235
32,483.235
(41,088,164) 32,483,235
(8,604,929)
27,717,962
33,895,921
2,669,138
886,356
87,760
5,704,453
781,729
169.768
_ 71,913,087
30,824,923
200.296,128
101.203
$ 231,222,254
3,977,901
(169,768)
3,808.133
36,291,368
173.541.652
3.965.149
$ 213,798,169
27,717,962
33,895,921
2,669,138
886,356
87,760
9,682,354
781,729
75,721,220
67,116,291
373, 837.780
4,066,352
$ 445,020,423
21
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
BALANCE SHEET — GOVERNMENTAL FUNDS
September 30, 2025
CAPITAL
DEBT
ECONOMIC
GENERAL
PROJECTS
SERVICE
DEVELOPMENT
FUND
FUND
FUND
FUNDS
ASSETS
Cash and cash equivalents
S 16,940,907
$ 68,027,666 $
1,391,373
$ 38,106,233
Investments
2,638,072
-
-
2,419,226
Receivables - net of allowances
Taxes, net
6,127,744
196,164
2,552,972
Accounts and other
2,165,643
-
41,333
Due from other funds
644,353
-
Inventory
171,259
Restricted assets:
Cash and cash equivalents
157,539
Total assets
$ 28,745,517
$ 68,027,666 S
1,587,537
S 43,119,764
LIABILITIES
Accounts payable
$ 1,899,625
$ 396,325 $
400
$ 4,071
Accrued salaries and benefits
909,766
-
-
-
Retainage payable
-
Customer deposits
77,191
Due to other governments
85,382
Due to other funds
-
Interest payable
159,744
Unearned revenues
74,099
Total liabilities
3,046,063
386,325
160,144
4,071
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
1,280,910
196,164
FUND BALANCES
Nonspendable:
Inventory
171,259
Restricted for:
Police and public safety/municipal court
416,416
Municipal court
647,172
PEGcapital fees
135,581
-
Capital improvement
-
67,641,341
-
Debt service
-
1,231,229
Tourism development
-
Parks and tree mitigation
-
Historical conanittee and library
-
_
Economic development
-
43,115,693
Animal control
79,234
-
Scholarships
173,619
Committed for:
Capital projects
-
Civic center/S)ID
1,388,247
Assigned for:
Property replacement
1,054,301
Subsequent year's budget
2,564,504
Unassigned
17,788,211
Total fund balances
24,418,544
67,641,341
1,231,229
43,115.693
Total liabilities, deferred inflows
ofresources and fund balances
$ 28,745,517
$ 68,027,666 S
1,587,537
S 43,119,764
The accompanying notes
are an integral part of the financial statements.
22
FINAL DRAFT
AMERICAN
NONMAJOR
TOTAL
RESCUE PLAN
GOVERNMENTAL
GOVERNMENTAL
ACTFUND
FUNDS
FUNDS
$ 2,649,817
$ 12,776,985
$ 139,792,981
-
-
5,057,298
8,876,880
2,206,976
644,353
171,259
-
154,252
311,791
$ 2,649,817
$ 12,931,237
$ 157,061,538
$ 458,055 $ 4,824 $ 2,753,300
- - 909,766
134,024 - 134,024
- 77,191
- 85,382
644,353 644,353
- - 159,744
1,250,239 1,324,338
1,842,318 649,177 6,088,098
1,477,074
171,259
552,626
969,042
-
647,172
-
135,581
5,548,955
73,190,296
-
1,231,229
4,316,603
4,316,603
2,017,655
2,017,655
- 109,998
109,998
807,499 -
43,923,192
-
79,234
-
173,619
1,388,247
1,054,301
2,564,504
(263,7717,524,434
807.499 12-282.060 149,496,366
$ 2,649,817 $ 12,931,237 $ 157,061,538
23
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
RECONCILIATION OF BALANCE SHEET —
GOVERNMENTAL FUNDS TO STATEMENT OF NET POSITION
September 30, 2025
Total fund balances - total governmental funds $ 149,496,366
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets used in governmental activities are not current financial resources and,
therefore, are not reported in the governmental funds balance sheet. 212,548,731
Bonds payable and accrued compensated absences will not be liquidated with current
financial resources, and, therefore, have not been included in the fund financial
statements. (111,343,634)
Interest payable on long-term debt is accrued in the government -wide financial
statements, whereas in the fund financial statements, these expenditures are reported
when due. (791,202)
Premiums on bond issuances and deferred losses on bond refunding are recorded as
other financing sources and uses when paid in the fund financial statements but are
capitalized and amortized in the government -wide financial statements over the life of
the bonds. (6,515,765)
Receivables from grants, property taxes and fines and fees are not available soon
enough to pay for the current periods expenditures and are, therefore deferred in the
fund financial statements
Included in the items related to debt is the recognition of the City's net pension liability,
total OPEB liability, and related deferred outflows and inflows or resources 1,530,495
Net pension liability
(15,973,737)
Deferred outflows related to pensions
6,141,658
Deferred inflows related to pensions
(968,687)
Total OPEB liability
(2,428,016)
Deferred outflows related to OPEB
402,352
Deferred inflows related to OPEB
{ 876,307)
Net position of governmental activities - statement of net position $ 231,222,254
The accompanying notes are an integral part of the financial statements.
24
FINAL DRAFT
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
For the year ended September 30, 2025
REVENUES
Taxes
Permits and fees
Service fees
Fines and fees
hitergovemmental
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Public environment
Parks and recreation
Cultural
Administration
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Bond issue cost
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
CAPITAL DEBT ECONOMIC
GENERAL PROJECTS SERVICE DEVELOPMENT
FUND FUND FUND CORPORATION
$ 43,833,937 $ - $ 9,239,261 $ 11,298,737
1,953,854 - -
2,833,131 - -
467,828 - -
2,552,069 - - -
940,915 2,166,319 100,303 1,736,318
996,957 - 100,000 -
53.578.691 2,166,319 9,439,564 13,035,055
7,310,443 - - 7,774,577
24,706,100 - - -
1,755,359 - - -
3,800,651 - - -
1,533,945 - - -
6,249,164 255,940 - 618,481
2,516,318 7,877,460 - -
- - 7,015,000
- - 3,227,327
- 141,719 - -
47,871,980 8,275,119 10,242,327 8,393,058
5,706,711 (6,108,800) (802,763) 4,641,997
OTHER FINANCING SOURC.F..S (USF..S)
Issuance ofbonds
-
27,385,000
-
Premium on issuance of bonds
-
1,531,795
-
-
Transfers in
282,976
3,493,792
4,079
-
Transfers out
S 1,477,241 i
(204,079)
-
1,849,500)
Total other financing sources (uses)
(1,194,265)
32,206,508
4,079
(1,849,500)
Net change in fund balances
4,512,446
26,097,708
(798,684)
2,792,497
FUND BALANCES - BEGINNING
17,947,703
41,543,633
2,029,913
40,323,196
RESTATEMENT
1,958,395
-
-
-
FUND BALANCES —ENDING $
24,418,544 $
67,641,341 $
1,231,229
$ 43,115,693
26
FINAL DRAFT
AMERICAN
NONMAJOR
TOTAL
RESCUE PLAN
GOVERNMENTAL
GOVERNMENTAL
ACTFUND
FUNDS
FUNDS
$ -
$ 886,356
$ 65,258,291
-
278,598
2,232,452
-
745,136
3,578,267
-
31,147
498,975
5,263,208
42,253
7,857,530
269,071
491,527
5,704,453
-
46
1,097,003
5,532,279
2,475,063
86,226,971
- 196,024
15,281,044
- -
24,706,100
- 103,686
1,859,045
- -
3,800,651
- 13,423
1,547,368
- -
7,123,585
5,539,172 17,738
15,950,688
- - 7,015,000
- - 3,227,327
- - 141,719
5,539,172 330,871 80,652,527
(6,893) 2,144,192 5,574,444
- - 27,385,000
- - 1,531,795
- 2,717 3,783,564
- 82,976) (3,613,796)
(80.2591 29.086.563
(6,893) 2,063,933 34,661,007
814,392 10,218,127 112,876,964
1,958,395
$ 807,499 $ 12,282,060 $ 149,496,366
27
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO
THE STATEMENT OF ACTIVITIES
For the year ended September 30, 2025
Net change in fund balances - total governmental funds $ 34,661,007
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the
governmental activities statement of activities, that cost of those assets is
allocated over their estimated useful Wes and reported as depreciation
expense.
Capital outlay 15,950,688
Contnbutions of infrastructure 13,144,815
Depreciation expense (10,608,313)
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.
Property taxes (1,154)
Court fines (120,405)
The issuance of long-term debt (e.g., bonds) provides current financial
resources to governmental funds, while the repayment of the principal of long-
term debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net position. Also,
governmental funds report the effect of premiums, discounts, and similar items
when debt is first issued, whereas the amounts are deferred and amortized in
the statement of activities.
Repayment of principal of long-term debt
7,042,307
Amortization of loss on refunding
(57,272)
Current year changes in certain long-term liabilities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds.
Issuance of bonds
(27,385,000)
Premium on issuance of bonds
(1,087,594)
Compensated absences
401,320
Net pension liability
(661,421)
Total OPEB liability
(101,487)
Interest payable on long-term debt is accrued in the government -wide financial
statements, whereas in the fund financial statements, interest expenditures are
reported when due. (352,568)
Change in net position of governmental activities $ 30,824,923
The accompanying notes are an integral part of the financial statements.
28
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
September 30, 2025
BUSINESS -TYPE ACTIVITIES - ENTERPRISE FUNDS
TOTAL
WATER AND
SCHERTZ
ENTERPRISE
SEWER SYSTEM
EMS
FUND
ASSETS
Current assets:
Cash and cash equivalents
$ 54,115,592
$ (2,290,318)
S 51,825,274
Investments
1,268,106
-
1,268,106
Accounts receivable, net of allowance:
Customer accounts
3,293,392
5,645,993
8,939,385
Accrued interest
37,244
-
37,244
Prepaids
-
69,500
69,500
Inventory
129,758
165,558
295.31
Total current assets
58,844.092
3.590,733
662434,825
Noncurrent assets:
Restricted assets:
Cash and cash equivalents
11,186,680
-
11,186,680
Investment in joint ventures
24,445,139
-
24,445,139
Capital assets:
Land
2,861,843
-
2,861,843
Water rights
70,245
-
70,245
Buildings and improvements
4,009,106
94,500
4,103,606
Machinery, equipment, and vehicles
5,328,981
3,771,068
9,100,049
Infrastructure
180,190,441
-
180,190,441
Construction in progress
36,554,548
-
36,554,548
Less accumulated depreciation
(50.446,754)
(2,379,729)
52,826,483)
Total noncurrent assets
214,200.229
1,485,839
215,68U68
Total assets
273,044,321
5,076,572
278,120,893
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to OPEB
39,514
100,169
139,683
Deferred outflows related to pension
603.162
1,529,003
2,132,165
Total deferred outflows of resources
642,676
1,629.172
2,,271,848
Total assets and deferred outflows
of resources
$ 273,686,997
$ 6,705,744
S 280,392,741
The accompanying notes are an integral part of the financial statements.
29
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
September 30, 2025
BUSINESS -TYPE ACTIVITIES - ENTERPRISE FUNDS
TOTAL
WATER AND
SCHERTZ
ENTERPRISE
SEWER SYSTEM
EMS
FUND
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND NET POSITION
Current liabilities:
Accounts payable $
3,996,201
$ 374,929
$ 4,371,130
Accrued liabilities
109,050
267,401
376,451
Retainage payable
1,014,481
-
1,014,481
Customer deposits
528,529
-
528,529
Accrued interest
397,770
-
397,770
Due to other funds
-
-
-
Uneamed revenue
300,000
2,260
302,260
Current portion of long-term liabilities:
Compensated absences
44,048
97,866
141,914
Total OPEB liability
9,300
23,574
32,874
Long-term liabilities
2,385,000
-
2,385,000
Total current liabilities
8,784,379
766,030
9,550,409
Noncurrent liabilities:
Compensated absences
176,194
391,465
567,659
Total OPEB liability
229,152
580,896
810,048
Net pension liability
1,568,753
3,976,757
5,545,510
Long-term liabilities
49,398,508
81,922
49,480,430
Total noncurrent liabilities
51,372,607
5,031,040
56,403,647
Total liabilities
60,156,986
5,797,070
65,954,056
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to OPEB
86,060
218,163
304,223
Deferred inflows related to pension
95,133
241,160
336,293
Total deferred inflows of resources
181,193
459,323
640,516
NET POSITION
Net investment in capital assets
126,784,902
1,403,917
128,188,819
Restricted for construction
7,679,648
-
7,679,648
Unrestricted
78.884.268
f 954566
_ 77,929,702
Total net position
213,348,818
449,351
21�,169
Total liabilities, deferred inflows
of resources, and net position
$ 273,686,997
$ 6,705,744
$ 280,392,741
The accompanying notes are an integral part of the financial statements.
30
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For the year ended September 30, 2025
BUSINESS -TYPE ACTIVITIES - ENTERPRISE FUNDS
TOTAL
WATER AND
SCHERTZ
ENTERPRISE
SEWER SYSTEM
EMS
FUND
OPERATING REVENUES
Fees charged to users
$ 32,807,875
$ 11,680,561
$ 44,488,436
Intergovernmental
-
-
-
Other charges
102,170
-
102,170
Miscellaneous
338.152
309,624
647,776
Total operating revenues
33,248.197
11,990.185
45,238,382
OPERATING EXPENSES
Personnel services
4,186,867
9,676,961
13,863,828
General and administrative
3,723,446
1,187,290
4,910,736
Contractual services
18,992,151
872,643
19,864,794
Supplies and maintenance
1,400,585
737,280
2,137,865
Depreciation
3,946,072
_ 305,784
4,251,856
Total operating expenses
32,249,121
12,779,958
45,029,079
Operating income (loss)
999,076
(789,773)
209,303
NONOPERATING REVENUES (EXPENSES)
Investment revenue
3,977,900
1
3,977,901
Loss on sale of asset
-
(105,574)
(105,574)
Rent revenue
329,117
-
329,117
Interest expense and fees
(985,745)
-
(985,745)
Total nonoperating revenues (expenses)
3,321,272
(105,573)
3,215,699
Income (loss)before contributions and transfers
4,320,348
(895,346)
3,425,002
Transfer in
1,232
-
1,232
Transfer out
(171,000)
-
(171,000)
Capital contributions - impact fees
2,454,275
-
2,454,275
Capital contributions - dedicated assets
30,581,859
-
30,581,859
Change in net position
37,186,714
(895,346)
36,291,368
TOTAL NET POSITION - BEGINNING
172,234,483
1,307,169
173,541,652
Restatement of net position 3,927,621 37,528 3,965,149
TOTAL NET POSITION - ENDING $ 213,348,818 $ 449,351 $ 213,798,169
The accompanying notes are an integral part of the financial statements.
31
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS — PROPRIETARY FUNDS
For the year ended September 30, 2025
BUSINESS -TYPE ACTIVITIES - ENTERPRISE FUNDS
TOTAL
WATER AND SCHERTZ ENTERPRISE
SEWER SYSTEM EMS FUND
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users
$ 31,609,562
$ 11,057,352
$ 42,666,914
Cash paid to employees for services
(3,934,332)
(9,604,735)
(13,539,067)
Cash paid to suppliers for goods and services
(23,535,606)
(3,030,578)
(26,566,184)
Net cash provided by (used in) operating activities
4,139,624
(1,577,961)
2,561,663
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from/to other funds
Net cash provided by (used in) noncapital
financing activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase/construction of capital assets
Capital contributions - impact fees
Proceeds from issuance of debt
Interest paid on long-term debt
Principal paid on long-term debt
Net cash provided by (used in) capital
and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments
Payments from rentals
Interest and investment earnings
Net cash provided by (used in) investing activities
Net increase (decrease) in cash and
cash equivalents
(169,768)
(169,768)
(169,768)
(169,768)
(5,650,590)
(630,908)
(6,281,498)
2,454,275
-
2,454,275
27,760,568
-
27,760,568
(742,939)
-
(742,939)
(1,831,680)
J81,921j
(1,913,601)
21,989,634
(712,829)
21,276,805
(45,836)
-
(45,836)
329,117
-
329,117
3,946,980
1
3,946,981
4,230,261
1
4,230,262
30,189,751
(2,290,789)
27,898,962
CASH AND CASH EQUIVALENTS - BEGINNING 35,112,521 471 35,112,992
CASH AND CASH EQUIVALENTS- ENDING $ 65,302,272 $ (2,290,318) $ 63,011,954
The accompanying notes are an integral part of the financial statements.
32
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS — PROPRIETARY FUNDS
For the year ended September 30, 2025
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating
income (loss) to net cash provided by
operating activities:
Depreciation
Change in investment in joint venture
Decrease (increase) in accounts receivable
Decrease (increase) in inventory
Decrease (increase) in prepaids
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in customer deposits
Increase (decrease) in unearned revenue
Increase (decrease) in compensated absences
Increase (decrease) in net pension liability
Increase (decrease) in total OPEB liability
Net cash provided by (used in) operations
SCHEDULE OF NONCASH CAPITAL ACTIVITIES
Developer contributions of capital as ets
Total noncash capital activities
BUSINESS -TYPE ACTIVITIES - ENTERPRISE FUNDS
TOTAL
WATER AND SCHERTZ ENTERPRISE
SEWER SYSTEM EMS FUND
$ 999,076 $ (789,773) $ 209,303
3,946,072
(2,236,433)
640,106
(20,008)
(443,839)
1,044,423
(72,308)
80,541
(948,422)
1,150.416
305,784
(989,233)
(165,558)
(69,500)
(57,874)
57,307
2,260
56,400
164,665
(92.439]
4,251,856
(2,236,433)
(349,127)
(185,566)
(69,500)
(501,713)
1,101,730
(72,308)
2,260
136,941
(783,757)
1,057.977
$ 4,139,624 $ (1,577,961) $ 2,561,663
$ 30,581,859 $ - $ 30,581,859
$ 30,581,859 $ - $ 30,581,859
The accompanying notes are an integral part of the financial statements.
33
FINAL DRAFT
NOTES TO FINANCIAL STATEMENTS
FINAL DRAFT
FINAL DRAFT
CITY OF SCI ERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
1 ] Summary+ of significant accountine policies
The City of Schertz, Texas (the City) is a municipal corporation governed by an elected mayor and a seven -
member council. The financial statements of the City have been prepared in conformity with generally accepted
accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board
(GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting
principles. The more significant of the City's accounting policies are described below:
Reporting entity
Component units — As required by generally accepted accounting principles, these financial statements present
the government and its component units, entities for which the government is considered to be financially
accountable. Blended component units, although legally separate entities, are, in substance, part of the
government's operations; thus, data from these units are to be combined with data of the primary government.
Discretely presented component units, on the other hand, are reported in a separate column in the government -
wide financial statements to emphasize it is legally separate from the government. The City reports the
following component unit:
Schertz Economic Development Corporation (SEDC) — The Corporation was organized for the purpose of
promoting economic development in order to eliminate unemployment and underemployment and to promote
and encourage employment and public welfare of, for, and on behalf of the City. The board of directors consists
of seven (7) members appointed by the city council. The City is financially accountable for the Corporation
because the city council approves the Corporation's budget and appoints all board members. For financial
reporting purposes, the SEDC is reported as a blended component unit due to the City having operational
responsibility for the component unit, and that any debt issued by the SEDC would be expected to be paid using
City resources. Thus, the SEDC is presented as a special revenue fund within the City's financial statements.
Complete financial statements for the Schertz Economic Development Corporation may be obtained from City
Hall.
Joint ventures —A joint venture is a legally separate entity that results from a contractual arrangement and that
is owned, operated, or governed by two or more participating governments. The following entities meet the
criteria as joint ventures. Separate financial statements for these entities may be obtained at City Hall.
Schertz/Seguin Local Government Corporation — is a public, nonprofit corporation organized to aid, assist, and
act on behalf of the cities of Schertz and Seguin in acquiring, constructing, maintaining, and operating a water
utility system. The participating governments have an ongoing financial responsibility to fund the operation of
the corporation through either purchase of services or by subsidizing the operations.
Cibolo Valley Local Government Corporation — is a public, nonprofit corporation organized July 28, 2011 to
aid, assist, and act on behalf of the cities of Cibolo, and Schertz in acquiring, constructing, maintaining, and
operating a water utility system. The participating governments have an ongoing financial responsibility to fund
the operation of the corporation through either purchase or services or by subsidizing the operations.
Government -wide and fund financial statements
The government -wide financial statements (i.e., the statement of net position and the statement of activities)
report information on all of the activities of the primary government and its component units. For the most part,
the effect of interfund activity has been removed from these statements. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately from business -type
activities, which rely, to a significant extent, on fees and charges for support.
37
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
1 i_ Summary.. of significant accountinp, policies (continued]
Government -wide and fund financial statements (continued)
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function
or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly
benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not properly included among program revenue are reported instead as general
revenues.
Separate financial statements are provided for governmental and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund financial
statements.
Measurement focus, basis of accounting and financial statement presentation
The government -wide financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are
recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. Revenues are recognized as soon as it is both measurable and
available. Revenues are considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be
available if collected within 60 days of the end of the current fiscal period. Nonexchange revenues that are
measurable but not available are recorded as unavailable revenue (a deferred inflow of resources). These
revenues are generally property taxes and warrants outstanding. Expenditures generally are recorded when a
liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due.
Exchange revenues (payments for services) received in advance of the services being provided are recorded as
unearned revenue.
The City reports the following major governmental funds:
The general fund is the City's primary operating fund which accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
The capital projects fund accounts for the acquisition and construction of major capital facilities financed
from bond proceeds, grants, and transfers from other funds.
The debt service fund accounts for the resources accumulated and payments made and interest on long-term
general obligation debt of governmental funds.
The economic development corporation collects sales taxes to support business development and expansion
within the City.
The American Rescue Plan Act fund records revenue and expenditures related to the City's COVID-19
funding from the American Rescue Plan Act.
38
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
1) Summary of significant accounting policies (continued,)
Measurement focus, basis of accounting and financial statement presentation (continued)
The City reports the following major enterprise funds:
The water and sewer system fund accounts for the water and sewer services provided to the citizens through
user charges.
The EMS fund accounts for the emergency medical services provided to the citizens of the City and other
participating governments through user charges.
As a general rule, the effect of interfund activity has been eliminated from the government -wide financial
statements. Exceptions to this general rule are charges between the City's general government function and
various other functions of the City. Elimination of these charges would distort the direct costs and program
revenue reported for the various functions concerned.
Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services, or
privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. General
revenues include all taxes and investment earnings.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues
and expenses generally result from providing services and producing and delivering goods in connection with
a proprietary fund's principal ongoing operations. The principal operating revenues of the water and sewer
enterprise fund and the EMS enterprise fund are charges to customers for sales and services. Operating expenses
for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital
assets. All revenue and expenses not meeting this definition are reported as nonoperating revenue and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first, then unrestricted resources as they are needed.
Cash and cash equivalents
The City's cash and cash equivalents are considered to be cash on hand and demand deposits. Cash is reported
as restricted when it has restrictions on its use narrower than the purpose of the fund in which it is reported.
This can result in differences in presentation between fund statements and government -wide statements.
For purposes of the statement of cash flows, the City considers cash and other investments with maturities of
three months or less from the date of purchase to be cash and cash equivalents.
Investments
The City is authorized to invest in (1) obligations of the United States or its agencies and instrumentalities; (2)
direct obligations of the State of Texas or its agencies; (3) other obligations, the principal of and interest on
which are unconditionally guaranteed or insured by the State of Texas of the United States; (4) obligations of
states, agencies, counties, cities, and other political subdivisions of any state having been rated not less than
"AA" or its equivalent; (5) certificates of deposit issued by state and national banks domiciled in Texas that are
guaranteed or insured by the Federal Deposit Insurance Corporation (FDIC) or its successor, or secured by
obligations mentioned above; and (6) fully collateralized direct repurchase agreements having a defined
termination date. In addition, the City is authorized to invest in local government investment pools. The
investment pools operate in accordance with appropriate state laws and regulations and have regulatory
oversight from the Texas Public Funds Investment Act Sec. 2256.0016.
39
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
(11) Summary of significant accounting policies (continued)
Investments (continued)
Investments for the City are reported at fair value, except for the position in investment pools, which are
reported at net asset value per share (which approximates fair value) even though it is calculated using the
amortized cost method.
The City categorized its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs
used to measure an asset's fair value: level 1 inputs are quoted prices in active markets for identical assets; level
2 inputs are significant other observable inputs; level 3 inputs are significant unobservable inputs.
Receivables and payables
Activities between the funds that are representative of inter -fund loans outstanding at the end of the fiscal year
are referred to as "due to/from other funds". Any residual balances outstanding between the governmental
activities and business -type activities are reported in the government -wide financial statements as "internal
balances."
Accounts receivables are reported net of allowances for uncollectible accounts. The allowance account
represents management's estimate of uncollectible accounts based upon experience and historical trends.
Property taxes for the City are levied each October 1 on the taxable value as of the preceding January 1, the
date a lien attaches, for all taxable real and personal property located in the City. Taxes are due by January 31
following the October 1 assessment date and become delinquent on February 1, at which time they begin
accruing penalty and interest. The enforceable legal claim date for property taxes is the assessment date;
therefore, the City did not record a receivable for accrual of future taxes at year end. Accordingly, no current
taxes receivable are reported. Delinquent taxes have been reported in the financial statements net of the
allowance for uncollectible taxes. Tax revenues are recognized as they become available. Accordingly, an
amount equal to taxes not yet available has been reported as unavailable revenue (a deferred inflow of resources)
at the government fund level.
Inventories
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds
are recorded as expenditures when consumed rather than when purchased.
Restricted assets
Certain proceeds from bonds, resources set aside for their repayment, and other restrictive agreements are
classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants
and/or contractual arrangements.
40
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
Summary of significant accounting policies (continued)
Capital assets
Capital assets, which include land, buildings and improvements, machinery, equipment, vehicles, and
infrastruture assets (i.e., roads, bridges, sidewalks and similar items), are reported in the applicable
governmental or business -type activities columns in the government -wide financial statements. Capital assets
are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life
in excess of one year. When capital assets are purchased, they are capitalized and depreciated in the government -
wide financial statements and the proprietary fund statements. Capital assets are recorded as expenditures of
the current period in the governmental fund financial statements
Capital assets are valued at cost where historical records are available and at an estimated cost where no records
exist. Donated capital assets, donated works of art and similar items received as part of a service concession
arrangement are reported at acquisition value, rather than fair value.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets'
lives are not capitalized. Improvements to capital assets that materially extend the life of the asset or add to the
value are capitalized. Major outlays for capital assets and improvements are capitalized as projects are
constructed.
Capital assets are depreciated over their useful lives on a straight-line basis as follows:
ASSET USE LIVES [YEARS]
Buildings and improvements 10 - 50
Machinery, equipment, and vehicles 2 - 20
Infrastructure 15 - 50
Deferred inflows / outflows of resources
In addition to assets, the statement of financial position and/or balance sheet will sometimes report a separate
section for deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represent a consumption of net assets that applies to a future period(s) and so will not be recognized
as an outflow of resources (expense/expenditure) until then. The City has the following items that qualify for
reporting in this category:
• Deferred charges on refunding — a deferred charge on refunding results from the difference in the carrying
value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter
of the life of the refunded or refunding debt.
• Pension and OPEB contributions after measurement date — these contributions are deferred and recognized
in the following fiscal year.
• Difference in expected and actual pension and OPEB experience — the difference is deferred and recognized
over the estimated average remaining lives of all members determined as of the measurement date.
• Changes in actuarial assumptions and other inputs — this difference is deferred and recognized over the
estimated average remaining lives of all members determined as of the measurement date.
41
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
( 1 ) Summary of significant accounting policies (continued)
Deferred inflows / outflows of resources (continued)
In addition to liabilities, the statement of financial position and/or balance sheet will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized
as an inflow of resources (revenue) until that time. The City has the following types of items that qualify for
reporting in this category:
• Unavailable revenue is reported only in the governmental funds balance sheet. These amounts are deferred
and recognized as an inflow of resources in the period that the amounts become available.
• Difference in projected and actual earnings on pension assets — this difference is deferred and amortized
over a closed five-year period.
• Difference in expected and actual pension and OPEB experience — this difference is deferred and recognized
over the estimated average remaining lives of all members determined as of the measurement date.
• Changes in actuarial assumptions and other inputs — this difference is deferred and recognized over the
estimated average remaining lives of all members determined as of the measurement date.
Compensated absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits.
Vacation is accrued depending on level of employment and years of service. Vacation can be accrued depending
on years of service with the City. Accrued vacation is paid upon retirement or termination of employment in
accordance with City policy. As of October 1, 2024 the City has implemented GASB Statement No. 101
Compensated Absences. This required all vacation and sick leave carried by employees at the City as well as
the fringe benefits associated with the leave balances to be included in the calculation of compensated absences
and required a restatement of net position of $1,493,374.
Pensions
The net pension liability, deferred inflows, and outflows of resources related to pensions, and pension expense,
information about the fiduciary net position of the Texas Municipal Retirement System (TMRS), and additional
additions to and deductions from TMRS's fiduciary net position have been determined on the same basis as
they are reported by TMRS. For this purpose, benefit payments (including refunds of employee contributions)
are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair
value.
Other postemployment benefits
Supplemental Death Benefits Fund. For purposes of measuring the total Texas Municipal Retirement System
Supplemental Death Benefits Fund (TMRS SDBF) OPEB liability, related deferred outflows and inflows of
resources, and expense, City specific information about its total TMRS SDBF liability and additions
to/deductions from the City's total TMRS SDBF liability have been determined on the same basis as they are
reported by TMRS. The TMRS SDBF expense and deferred (inflows)/outflows of resources related to TMRS
SDBF, primarily result from changes in the components of the total TMRS SDBF liability. Most changes in the
total TMRS SDBF liability will be included in TMRS SDBF expense in the period of the change. For example,
changes in the total TMRS SDBF liability resulting from current -period service cost, interest on the TOL, and
changes of benefit terms are required to be included in TMRS SDBF expense immediately. Changes in the total
TMRS SDBF liability that have not been included in TMRS SDBF expense are required to be reported as
deferred outflows of resources or deferred inflow of resources related to TMRS SDBF.
42
FINAL ®RAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
i 1 � Summary of significant accounting policies (continued)
Other postemployment benefits
Retiree Health Insurance. For purposes of measuring the total OPEB liability, OPEB related deferred outflows
and inflows of resources, and OPEB expense, benefit payments and refunds are recognized when due and
payable in accordance with the benefit terms. Contributions are not required but are measured as payments by
the City for benefits due and payable that are not reimbursed by plan assets. Information regarding the City's
total OPEB liability is obtained from a report prepared by a consulting actuary, Gabriel Roeder Smith and
Company.
Long-term obligations
In the government -wide financial statements, and proprietary fund types in the fund financial statements, long-
term debt and other long-term obligations are reported as liabilities in the applicable governmental activities,
business -type activities, or proprietary fund type statement of net position. Bond premiums, discounts, and
losses on defeasance are amortized over the life of the bonds using the straight-line method. Bonds payable are
reported net of the applicable bond premium or discount. Losses on defeasance are reported as deferred outflows
of resources. Bond issuance costs are expensed as incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as
bond issuance costs, during the current period. The face amount of debt issued is reported as other financing
sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt
proceeds received, are reported as debt service expenditures.
Fund balance
Fund balances in governmental funds are classified as follows:
• Nonspendable: represents amounts that cannot be spent because they are either not in spendable form (such
as inventory or prepaid items) or legally required to remain intact.
• Restricted: represents amounts that are constrained by external parties, constitutional provisions or enabling
legislation.
• Committed: represents amounts that can only be used for specific purposes because of a formal action by
the government's highest level of decision -making authority; an ordinance adopted by City Council prior
to the end of the fiscal year. Once adopted, the limitation imposed by the ordinance remains in place until
a similar action is take (the adoption of another ordinance) to remove or revise the limitation.
• Assigned: represents amounts which the City intends to use for a specific purpose but do not meet the
criteria of restricted or committed. The City Council may make assignments through formal documentation
in the minutes. The City Council authorized (by way of policy) the City Manager to also make assignments.
The City Manager's assignments do not require formal action.
• Unassigned: represents the residual balance that may be spent on any other purpose of the City. Only the
general fund reports positive unassigned fund balances; if another fund were to have unassigned fund
balance, it would be in the event of a deficit.
When an expenditure is incurred for a purpose in which multiple classifications are available, the City considers
restricted balances spent first, committed second, and assigned third.
43
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
Summary of significant accounting policies (continued)
Net position
Net position represents the difference between assets plus deferred outflows of resources less liabilities and
deferred inflows of resources. Net investment in capital assets consists of capital assets, net of accumulated
depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction or
improvements of those assets, and adding back unspent proceeds. Net position is reported as restricted when
there are limitations imposed by creditors, grantors, or laws or regulations of other governments.
Estimates
The preparation of financial statements, in conformity with generally accepted accounting principles, requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenue
and expenses during the reporting period. Actual amounts could differ from those estimates.
Deficit equity
At September 30, 2025, the City has a deficit unassigned fund balance of $263,777 in the grant fund. This
deficit is due to timing differences between expenditures and reimbursements of grant funds.
Budgetary information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all
governmental funds except the American Rescue Plan Act fund, library advisory board fund, grant special
revenue fund, police department forfeiture special revenue fund, and the capital projects fund, which adopts
project -length budgets.
(2) Detailed notes on all funds and activities
Cash, cash equivalents and investments
As of September 30, 2025, the City had the following cash, cash equivalents, and investments:
REPORTED
DESCRIPTION
VALUE
Investment type:
Logic
$ 88,247,080
Lone Star Investment Pool
32,525,504
Texas CLASS
71,004,544
Certificates of deposit
4,174,332
U.S. agency securities
1,902,072
Subtotal
197,853,532
Plus depository and petty cash
11,588,598
Total cash and investments $ 209,442,130
WEIGHTED
AVERAGE FAIR VALUE
MATURITY MEASUREMENTS
(DAYS)
48
21
34
79
487
USING - LEVEL 2
4,174,332
$ 4,174,332
44
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
2] Detailed notes on all funds and activities (continued
Cash, cash equivalents and investments (continued)
LOGIC, Lone Star Investment Pool, and Texas CLASS are recorded as cash equivalents in the financial
statements. All of the pools have redemption notice periods of one day and may redeem daily. The investment
pools' authorities may only impose restrictions on redemptions in the event of a general suspension of trading
on major securities markets, general banking moratorium or national state of emergency that affects the pools'
liquidity.
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of
the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant
observable inputs other than quoted market prices for similar assets; Level 3 inputs are significant unobservable
inputs. All of the City's fair value investments were valued using either documented trade history in exact
security pricing, option -adjusted discounted cash flow, or present value of expected future cash flow pricing
models (Level 2 inputs).
Interest rate risk — as a means of limiting its exposure to fair value losses arising from interest rates, the City's
investment policy limits the City's investment portfolio to highly liquid investments to meet unanticipated cash
requirements, and/or to redeploy cash into other investments expected to outperform current holdings.
Credit risk — State law limits investments in certificates of deposit to guaranteed or insured by the Federal
Deposit Insurance Corporation, or its successor or the National Credit Union Share Insurance Fund, or its
successor and investment pools continuously rated no lower than AAA or an equivalent rating by at least one
nationally recognized rating service. The City's investment policy does not further limit its investment choices.
As of September 30, 2025, the City's investments in the pooled investment funds were rated AAAM by
Standard & Poor's. The City has also invested in debt securities provided by the Federal Home Loan Bank,
Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Farm Credit
Banks, and U.S. Treasury Notes. As of September 30, 2025, the City's investments in debt securities were rated
BBB+ by Standard & Poor's.
Custodial credit risk — deposits — in the case of deposits, this is the risk that in the event of a bank failure, the
government's deposits may not be returned. As of September 30, 2025, the City's cash and cash equivalents
(including certificates of deposit, and component unit holdings) were fully collateralized by the City's
depository by a combination of pledged collateral and FDIC insurance. All collateral is held in the City's name.
Custodial credit risk — investments — for an investment, this is the risk that, in the event of the failure of the
counterparty, the government will not be able to recover the value of its investment or collateral securities that
are in the possession of an outside party. All of the government securities owned by the City are held by its
agent in the City's name.
Restricted cash — cash is restricted in the proprietary fund for construction projects, impact fees, and customer
deposits.
Property taxes
Taxes are levied on and payable as of October 1. The City has contracted with the Guadalupe County Tax
Assessor -Collector to collect taxes on its behalf. Current taxes become delinquent February 1. Current year
delinquent taxes not paid by July 1 are turned over to attorneys for collection action.
45
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
(2) Detailed notes on all funds and activities (continued)
Property taxes (continued)
The City is permitted by the Constitution of the State of Texas to levy taxes up to $2.50 per $100 of taxable
assessed valuation for all governmental purposes. Pursuant to a decision of the Attorney General of the State of
Texas, up to $1.50 per $100 of assessed valuation may be used for the payment of long-term debt. The combined
tax rate to finance general governmental services, including the payment of principal and interest on long-term
debt for the year ended September 30, 2025, was $0.4900 per $100 of assessed value.
However, the City may not adopt a tax rate that exceeds the tax rate calculated in accordance with the Texas
Property Tax Code without holding a public hearing. The Property Tax Code subjects an increase in the
effective tax rate to a referendum election, if petitioned by registered voters, when the effective tax rate increase
is more than 3.5% of the previous year's effective tax rate.
Property taxes are recorded as receivables and unearned revenues at the time the taxes are assessed. In
governmental funds, revenues are recognized as the related ad valorem taxes are collected. Additional amounts
estimated to be collectible in the time to be a resource for payment of obligations incurred during the fiscal year
and therefore susceptible to accrual in accordance with generally accepted accounting principles have been
recognized as revenue. In the government -wide financial statements, the entire levy is recognized as revenue,
net of estimated uncollectible amounts (if any), at the levy date.
Receivables
Receivables as of September 30, 2025 for the government's individual major funds and nonmajor funds in the
aggregate, including the applicable allowances for uncollectible accounts, are as follows:
GOVERNMENTAL ACTIVITIES
BUSINESS -TYPE ACTIVITIES
GENERAL
ECONOMIC
DEBT
WATERAND
SCHERTZ
FUND
DEVELOPMENT
SERVICE
SEWER FUND
EMS
TOTAL
Receivables:
Property takes
$ 440,541
$ -
$ 208,685
$ -
$ -
$ 649,226
Sales tax
5,105,943
2,552,972
-
-
-
7,658,915
Occupancy taxes
-
-
-
-
-
-
Franchise taxes
586,262
-
-
-
-
586,262
Customers
-
-
-
3,352,010
8,917,427
12,269,437
Court fines
2,129,735
-
-
-
2,129,735
Other
1,400,103
41,333
-
2,667
1,444,103
Gross receivables
9,662,584
2,594,305
208,685
3,352,010
8,920,094
24,737,678
Less allowance for
uncollectible accounts
(1,369,197)
-
(12,521)
(58,618)
(3,274,101)
(4,714,437)
Net receivables
$ 8,293,387
$ 2,594,305
$ 196,164
$ 3,293,392
$ 5,645,993
$ 20,023,241
46
FINAL DRAFT
CITY OF SCIIERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
(2) Detailed notes on all funds and activities (continued)
Deferred inflows and outflows of resources
Governmental funds report unavailable revenue in connection with receivables for revenue that is not
considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the
various components of unavailable revenue and unavailable revenue reported in governmental funds were as
follows:
General fund
Delinquent property taxes receivable $ 414,108
Court fines 866,802
Total general fund 1,280,910
Debt service fund
Delinquent property taxes receivable 196,164
Total debt service fund 196,164
Total governmental funds $ 1,477,074
Additionally, the proprietary funds and governmental activities statements of net position report various
deferred outflows and inflows of resources, primarily due to pensions and OPEB, that are summarized by
column. The following table presents the disaggregated amounts.
GOVERNMENTAL WATER/
ACTTVTTIES SEWER EMS
Deferred outflows:
Charge on refunding $
334,923
Related to pensions
6,141,658
Related to OPEB-SDBF
104,101
Related to OPEB-retiree health plan
298,251
Total deferred outflows $
6,878,933
Deferred inflows:
Service concession arrangement
Related to pensions
Related to OPEB-SDBF
Related to OPEB-retiree health plan
Total deferred inflows
603,162
1,529,003
10,223
25,917
29,291
74,252
$ 642,676
$ 1,629,172
$ 267,333
$ -
$ -
968,687
95,133
241,160
238,946
23,466
59,487
637,361
62,594
158,676
$ 2,112,327
$ 181,193
$ 459,323
TOTALS
$ 334,923
8,273,823
140,241
401,794
$ 9,150,781
$ 267,333
1,304,980
321,899
858,631
$ 2,752,843
47
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
(2) Detailed notes on all funds and activities (continued)
Interfund balances and transfers
The composition of interfund balances as of September 30, 2025, is as follows:
Due From Due To Amount Purpose
Nonmajor governmental fund General fund $ 644,353 Short-term pool cash loan
The following schedule briefly summarizes the City's transfer activity for the year ending September 30, 2025:
Transfer From
Nonmajor governmental fund
Capital projects fund
Capital projects fund
Economic development corporation
General fund
General fund
Water and sewer fund
General fund
Transfer To
General fund
General fund
Debt service fund
Capital projects fund
Capital projects fund
Water and sewer fund
Capital projects fund
Nonmajor governmental fund
Amount Purpose
$ 82,976
Supplement funds sources
200,000
Supplement funds sources
4,079
Supplement funds sources
1,849,500
Funding for various capital projects
1,473,292
Funding for various capital projects
1,232
Supplement funds sources
171,000
Supplement funds sources
2,717
Supplement funds sources
Capital assets
Capital asset activity for the year ended September 30, 2025 was as follows:
BALANCE TRANSFERS/ ENDING
AS RESTATED ADDITIONS DELETIONS BALANCE
Governmental activities
Capital assets not being depreciated
Land
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated
Buildings and improvements
Machinery, equipment, and vehicles
Street and infrastructure
Total capital assets being depreciated
Less accumulated depreciation:
Buildings and improvements
Machinery, equipment, and vehicles
Street and infrastructure
Total accumulated depreciation
Total capital assets being depreciated -net
Govemmental activities capital assets -net
$ 15,299,666 $
143,791 $
- $
15,443,457
5,624.109
13,135,971
(2,813,095)
15,946,985
20,923,775
13,279,762
(2,813,095)
31,390, 42
70,157,099
2,291,668
72,448,767
21,022,952
2,677,316
(1,078,794)
22,621,474
180,716,063
13,659,852
194,375,915
271,896,114
18,628,836
(1,078,794)
289,446,156
(25,386,017)
(2,593,714)
-
(27,979,731)
(11,769,989)
(2,190,098)
1,040,998
(12,919,089)
(61,564,546)
+5,824,501)
(67,389,047)
C98,720 552}
(10.608.3131
L040.998
(108,287,867)
173,175.562
8,020,523
(37,796)
181,158,289
$ 194,099,337 $ 21,300,285 $ (2,850.891) $ 212,548,731
48
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
(2) Detailed notes on all funds and activities (continued)
Capital assets (continued)
Business -type activities
Capital assets not being depreciated
Land
Water rights
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated
Buildings and irprovements
Machinery, equipment, and vehicles
Street and infrastructure
Total capital assets being depreciated
Less accumulated depreciaton:
Buildings and improvements
Machinery, equipment, and vehicles
Street and infrastructure
Total accumulated depreciation
Total capital assets being depreciated - net
Business -type activities capital assets -net
BALANCE
AS RESTATED ADDITIONS
TRANSFERS/ ENDING
DELETIONS BALANCE
$ 2,684,967
$ 176,876 $
-
$ 2,861,843
70,245
-
70,245
29,281,294
7,273,254
-
36,554,548
31036.506
7,450,130
39,486.636
3,725,152
-
378,454
4,103,606
7,978,454
1,748,742
(627,147)
9,100,049
149 987 037
30,581.858
(378.454)
180,190,441
161,690,643
32,330,600
(627,147)
193,394,096
(1,556,681)
(258,509)
-
(1,815,190)
(5,178,544)
(571,854)
521,573
(5,228,825)
(42,416,972)
(3,421,493)
55,997
(45,782,468)
(49,152,197)
(4,251,856)
577,570
(51826.483]
112,538,446
28,078,744
(49,577i
_ 140,567.613
$ 144,574,952
$ 35,528,874 $
(49,577)
$ 180,054,249
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities
General government
Public safety
Public environment
Parks and recreation
Cultural
Administration
Total depreciation expense - governmental activities
Business -type activities
Water and sewer system
EMS
Total depreciation expense - business -type activities
$ 1,113,873
1,707,938
6,311,947
1,400,297
63,650
10,608
$ 10,608,313
$ 3,946,072
305,784
$ 4,251,856
49
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
(2) Detailed notes on all funds and activities (continued)
Long-term debt
The City issues a variety of long-term debt instruments in order to acquire and/or construct major capital
facilities and equipment for governmental activities. These instruments include general obligation bonds and
certificates of obligation. These debt obligations are secured primarily by future property tax revenues. In some
cases, these bonds are also secured by a pledge of net revenues from the utility system, emergency medical
services and economic development sales taxes. However, the amount of the formal pledge is generally limited
to $1,000. Proprietary operating revenues for the year exceeded $45 million and sales tax revenues was $34
million.
Additionally, certain obligations that were marketed as private placements have been separately identified;
however, the terms of these obligations are not significantly different than other obligations and do not have
substantive acceleration clauses. Should the City default on these bonds, any registered owner of the obligations
is entitled to seek a writ of mandamus from a court of proper jurisdiction requiring the City to make payment.
Changes in long-term debt for the year ending September 30, 2025 are as follows:
Governmental activities
General obligation bonds
Certificates ofobligation
General obligation bonds -
private placement
Premium from debt
Financing arrangement
Compensated absences
Total governmental activities
long-term liabilities
Business -type activities
General obligation bonds
Certificates of obligation
General obligation bonds -
private placement
Premium from debt
Financing arrangement
Compensated absences
Business -type activity
long-term liabilities
BALANCE
REFUNDED/
ENDING
DUE WITHIN
ASRESTATED
ISSUED
RETIRED
BALANCE
ONE YEAR
$ 42,630,000
$
-
$ (2,845,000) $
39,785,000
$
2,970,000
42,275,000
27,385,000
(3,160,000)
66,500,000
3,050,000
3,765,000
-
(1,010,000)
2,755,000
1,035,000
5,763,094
1,531,795
(444,201)
6,850,688
444,201
54,614
-
(27,307)
27,307
27,307
2,531,848
(255,521)
2,276,327
455,265
$ 97,019,556
$
28,916,795
$ (7,742,029) $
118,194,322
$
7,981,773
$ 2,535,000
$
-
$ (595,000) $
1,940,000
$
615,000
21,150,000
26,290,000
(890,000)
46,550,000
1,770,000
215,000
-
(215,000)
-
-
1,954,620
1,470,568
(131,680)
3,293,508
131,680
163,843
-
(81,921)
81,922
81,922
794,077
(84,504)
709,573
141,914
$ 26,812,540
$
27,760,568
$ (1,998,105) $
52,575,003
$
2,740,516
Prior year refunding of debt
The City defeased certain outstanding bonds by placing proceeds of new bonds in irrevocable trusts to provide
for all future debt service payments. Accordingly, the respective trust accounts and liability for the defeased
bonds not included in the City's financial statements. As of September 30, 2025, the City does not have bonds
considered defeased and outstanding.
50
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
(2) Detailed notes on all funds and activities (continued)
Long-term debt (continued)
A summary of the terms of long-term debt outstanding at September 30, 2025, is as follows:
Governmental activities
General obligation bonds
2014 Series, refunding
2015 Series, refunding
2016 Series
2017 Series
2018 Series, refunding
2020 Series, refunding
2021 Series, refunding
2022 Series
Private Placement obligations
2007 Series GO
2018 Series GO refunding
Certificates of obligation
2016 Series A
2016 Series B
2017 Series
2018 Series
2019 Series
2022 Series
2022 Series A
2024 Series
2025 Series
ISSUE INTEREST
AMOUNT MATURITY RATES BALANCE
$ 8,450,000
2030
2.00/6-4.0%
$ 4,645,000
4,185,000
2031
2.00/6-3.25%
1,140,000
5,880,000
2036
2.0%4.0%
3,555,000
3,935,000
2037
2.0%4.0%
2,645,000
5,830,000
2033
3.125%-5%
3,750,000
7,555,000
2036
1.5%-4.0%
4,360,000
4,070,000
2033
2.0%4.0%
2,990,000
18,535,000
2042
4.0%-5.0%
16,700,000
6,000,000
2027
4.07%
815,000
6,035,000
2028
2.12%
1,940,000
2,375,000
2036
2.0%-4.0%
950,000
1,475,000
2036
3.0%-3.75%
930,000
4,935,000
2037
3.0%-3.75%
2,695,000
4,845,000
2038
3.0%-5.0%
3,120,000
4,015,000
2039
2.5%-5.0%
2,400,000
4,740,000
2042
2.0%-5.0%
4,195,000
8,265,000
2042
4.0%-5.0%
7,445,000
19,165,000
2044
4.0%-5.0%
17,380,000
27,385,000
2045
5.00%
27,385,000
Total governmental activities long-term obligations
Business-tvDe activities
General obligation bonds
2018 Series, refunding
2021 Series, refunding
Certificates of obligation
2018 Series
2019 Series
2022 Series
2022 Series A
2025 Series
Total business -type long-term obligations
ISSUE INTEREST
AMOUNT MATURITY RATES
$ 2,740,000
2026
1,945,000
2033
5,595,000
2028
3,480,000
2039
4,650,000
2042
10,265,000
2042
26,290,000
2045
3.125%-5.0%
2.0%-3.0%
3.0%-5.0%
2.5%-5.0%
2.0%-5.0%
1.5%-5.0%
5.00%
$ 109,040,000
BALANCE
$ 450,000
1,490,000
4,160,000
2,675,000
4,175,000
9,250,000
26,290,000
$ 48,490,000
51
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
(2) Detailed notes on all funds and activities (continued)
Long-term debt (continued)
YEAR ENDING
GENERAL OBLIGATION BONDS
GOVERNMENTAL ACTIVITIES
CERTIFICATES OF OBLIGATION PRIVATE PLACEMENT DEBT- GO BONDS
SEPTEMBER30,
PRINCIPAL
INTEREST
TOTAL
PRINCIPAL
INTEREST
TOTAL PRINCIPAL INTEREST TOTAL
2026
$ 2,970,000
$ 1,438,288
$ 4,408,288
$ 3,050,000
$ 3,022,423
$ 6,072,423 $
1,035,000 $ 59,428 $ 1,094,428
2027
3,090,000
1,291,038
4,381,038
2,275,000
2,784,456
5,059,456
1,060,000 29,274 1,089,274
2028
3,510,000
1,167,513
4,677,513
2,360,000
2,677,431
5,037,431
660,000 6,996 666,996
2029
3,540,000
1,038,322
4,578,322
2,915,000
2,555,631
5,470,631
- -
2030
3,675,000
912,182
4,587,182
3,050,000
2,418,613
5,468,613
-
2031-2035
13,270,000
3,110,529
16,380,529
17,490,000
9,866,578
27,356,578
2036-2040
7,080,000
1,498,413
8,578,413
18,885,000
5,774,763
24,659,763
2041-2045
2,650,ODO
381,700
3,031,700
16,475,000
1,762,006
18,237,006
- -
$ 39,785,000
$ 10,837,985
$ 50,622,985
$ 66,500,000
$ 30,861,901
$ 97,361,901 $
2,755,000 $ 95,698 $ 2,850,698
BUSINESS -TYPE ACTIVITIES
YEAR ENDING
GENERAL
OBLIGATION
BONDS
CERTIFICATES OF OBLIGATION
SEPTEMBER30,
PRINCIPAL
INTEREST
TOTAL
PRINCIPAL
INTEREST
TOTAL
2026
$ 615,000
$ 50,200
$ 665,200
$ 1,770,000
$ 2,168,854
$ 3,938,854
2027
175,000
32,150
207,150
1,810,000
1,971,388
3,781,388
2028
180,000
25,950
205,950
1,900,000
1,880,263
3,780,263
2029
190,0DO
20,400
210,400
1,995,000
1,785,837
3,780,837
2030
195,000
14,625
209,625
2,090,000
1,689,088
3,779,088
2031-2035
585,000
16,850
601,850
11,985,D00
6,913,962
18,898,962
2036-2040
-
-
-
13,755,000
4,109,134
17,864,134
2041-2045
11,245,000
1,266,416
12,511,416
$ 1,940,000
$ 160,175
$ 2,100,175
$ 46,550,000
$ 21,784,942
$ 68,334,942
Financing arrangements
The City enters into various agreements to finance machinery and equipment; they are classified as financing
arrangements due to the title of the financed assets transferring to the City. Therefore, capital assets and a related
financing arrangement obligation have been recorded at the present value of the future minimum payments at
the inception date. This private placement debt is secured by the purchased equipment.
FISCAL
YEAR
GOVERNMENTAL ACTIVITIES
PRINCIPAL INTEREST
TOTAL
BUSINESS -TYPE ACTIVITIES
PRINCIPAL INTEREST TOTAL
2026 $ 27,307 $ 819 $ 28,126 $ 81,922 $ 2,458 $ 84,380
$ 27,307 $ 819 $ 28,126 $ 81,922 $ 2,458 $ 84,380
52
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
(2) Detailed notes on all funds and activities (continueda
Net pension and total OPEB liabilities and expenses
Amounts are aggregated into a single net pension liability and total OPEB liability, and expenses for certain
columns. Below is the detail of net pension liability and total OPEB liability and expenses for governmental
and business -type activities.
Business -Type Activities
Governmental Water/
Activities Sewer EMS Totals
Net pension liability $ 15,973,737 $ 1,568,753 $ 3,976,757 $ 21,519,247
Total OPEB liability
TMRS SDBF 645,297 63,374 160,651 869,322
Retiree health plan 1,782,719 175,078 443,819 2,401,616
Total OPEB liability $ 2,428,016 $ 238,452 $ 604,470 $ 3,270,938
Business -Type Activities
Governmental Water/
Activities Sewer EMS Totals
Pension expense $ 4,998,100 $ 490,855 $ 1,244,307 $ 6,733,262
OPEB expense:
TMRS SDBF $ 34,798 $ 3,417 $ 8,663 $ 46,878
Retiree health plan 167,084 16,409 41,596 225,089
Total OPEB expense $ 201,881 $ 19,826 $ 50,260 $ 271,967
53
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
3 Other information
Retirement plan
Plan description - The City of Schertz participates as one of 934 plans in the nontraditional, joint contributory,
hybrid defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS
is an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title
8, Texas Government Code (the TMRS Act) as an agent multiple -employer retirement system for municipal
employees in the State of Texas. The TMRS Act places the general administration and management of the
system with a six -member, Board of Trustees. Although the Governor, with the advice and consent of the
Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS's defined benefit
pension plan is a tax -qualified plan under Section 401(a) of the Internal Revenue Code. TMRS issues a publicly
available annual comprehensive financial report (ACFR) that can be obtained at www.tmrs.com.
All eligible employees of the City are required to participate in TMRS.
Benefits provided - TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted
by the governing body of the City, within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the member's contributions, with interest, and the City -
financed monetary credits with interest, were used to purchase an annuity. Members may choose to receive a
portion of their benefit as a partial lump sum distribution in an amount equal to 12, 24, or 36 monthly payments,
which cannot exceed 75% of the member's deposits and interest.
The City grants monetary credits for service rendered of a theoretical amount equal to two times what would
have been contributed by the employee, with interest. Monetary credits, also known as the matching ratio, are
200% of the employee's accumulated contributions and are only payable in the form of an annuity. Beginning
in 2008, the City granted an annually repeating (automatic) basis monetary credit referred to as an updated
service credit (USC) which is a theoretical amount that takes into account salary increases or plan
improvements. If at any time during their career an employee earns a USC, this amount remains in their account
earning interest at 5% until retirement. At retirement, the benefit is calculated as if the sum of the employee's
accumulated contributions with interest and the employer match plus employer -financed monetary credits, such
as USC, with interest were used to purchase an annuity. Additionally, initiated in 2008, the City provided on
an annually repeating (automatic) basis cost of living adjustments (COLA) for retirees equal to a percentage of
the change in the consumer price index (CPI).
At the December 31, 2024 valuation and measurement date, the following employees were covered by the
benefit terms:
Inactive employees or beneficiaries currently receiving benefits 168
Inactive employees entitled to but not yet receiving benefits 320
Active employees 417
Total205
Contributions - Member contribution rates in TMRS are either 5%, 6%, or 7% of the member's total
compensation, and the City matching percentages are either 100%, 150%, or 200%, both as adopted by the
governing body of the City. Under the state law governing TMRS, the contribution rate for each city is
determined annually by the actuary, using the entry age normal (EAN) actuarial cost method. The City's
contribution rate is based on the liabilities created from the benefit plan options selected by the City and any
changes in benefits or actual experience over time.
Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year.
The contribution rates for the City were 16.81% and 17.25% for calendar years 2024 and 2025, respectively.
The City's total contributions to TMRS for the year ended September 30, 2025 was $5,875,394, which were
equal to the required contributions.
54
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
3 j Other information (continued
Retirement plan (continued)
Net pension liability - The City's net pension liability (NPL) was measured as of December 31, 2024, and the
total pension liability (TPL) used to calculate the net pension liability was determined by an actuarial valuation
as of that date. The net pension liability is typically liquidated through the general fund and enterprise funds.
Actuarial assumptions:
The total pension liability in the December 31, 2024 actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.5% per year
Overall payroll growth 2.75% per year, adjusted down for population declines, if any
Investment rate of return 6.75% net of pension plan investment expense, including inflation
Salary increases are based on a service -related table. Mortality rates for active members are based on the
PLJB(10) mortality tables with 110% of the Public Safety table used for males and 100% of the General
Employee table used for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender -
distinct 2019 Municipal Retirees of Texas mortality tables. Male rates are multiplied by 103% and female rates
are multiplied by 105%. The rates for actives, healthy retirees and beneficiaries are projected on a fully
generational basis by the most recent Scale MP-2021 to account for future mortality improvements. For disabled
annuitants, the same mortality tables for healthy retirees are used with a 4-year set -forward for males and a 3-
year set -forward for females. In addition, a 3.5% and 3.0% minimum mortality rate is applied, for males and
females respectively, to reflect the impairment for younger members who become disabled. The rates are
projected on a fully generational basis by the most recent Scale MP-2021 to account for future mortality
improvements subject to the 3% floor.
The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS
over the four-year period from December 31, 2018 to December 31, 2022. The assumptions were adopted in
2023 and first used in the December 31, 2023, actuarial valuation. The post -retirement mortality assumption
for Annuity Purchase Rates (APRs) is based on the Mortality Experience Investigation Study covering 2009
through 2011 and dated December 31, 2013. Plan assets are managed on a total return basis with an emphasis
on both capital appreciation as well as the production of income to satisfy the short-term and long-term funding
needs of TMRS.
The long-term expected rate of return on pension plan investments was determined by best estimated ranges of
expected returns for each major asset class. The long-term expected rate of return is determined by weighting
the expected return for each major asset class by the respective target asset allocated percentage. The target
allocation and best estimates of expected return for each major asset class in fiscal year 2023 are summarized
in the following table:
LONG-TERM
EXPECTED REAL
TARGET RATEOFRETURN
ASSET CLASS ALLOCATION (ARITHMEFIC)
Global Equity 35.0% 7.10%
Core Fixed Income 6.0% 5.00%
Non -Core Fixed Income 6.0% 6.80%
Hedge funds 5.0% 6.40%
Private Equity 13.0% 8.50%
Private Debt 13.0% 8.20%
Real Estate 12.0% 6.70%
Infrastructure 6.0% 6.00%
Other Private Markets 4.0% 7.30%
Total 100.0%
55
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
(3) Other information (continuedi
Retirement plan (continued)
Discount rate - The discount rate used to measure the total pension liability was 6.75%. The projection of cash
flows used to determine the discount rate assumed that member and employer contributions will be made at the
rates specified in statute. Based on that assumption, the pension plan's fiduciary net position was projected to
be available to make all projected future benefit payments of current active and inactive members. Therefore,
the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
Changes in the net pension liability
Balance at December 31, 2023
Changes for the year:
Service cost
Interest
Change of benefit terms
Difference between expected and actual experience
Changes of assumptions
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds
of employee contributions
Administrative expense
Other changes
Net changes
Balance at December 31, 2024
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
$ 112,090,714 $ 90,096,861 $ 21,993,853
5,987,060 - 5,987,060
7,650,458 - 7,650,458
2,869,702 - 2,869,702
5,383,484 (5,383,484)
21271,513 (2,271,513)
9,388,272 (9,388,272)
(3,488,246) (3,488,246)
(60,039)
- (1,404)
13.018.974 13,493, 580
60,039
1,404
(474,6061
$ 125,109,688 $ 103,590,441 $ 21,519,247
Sensitivity of the net pension liability to changes in the discount rate
The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as well
as what the City's net pension liability would be if it were calculated using a discount rate that is 1-percentage-
point lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate:
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(5.75%) (6.75%) (7.75%)
Net pension liability $ 41,903,862 $ 21,519,247 $ 5,036,587
Pension plan fiduciary net position
Detailed information about the pension plan's fiduciary net position is available in the schedule of changes in
fiduciary net position, by participant city. The report may be obtained at www.tmrs.com.
56
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
(3) Other information (continued
Retirement plan (continued)
Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions
For the year ended September 30, 2025, the City recognized pension expense of $6,733,262. Also, as of
September 30, 2025, the City reported deferred outflows of resources an deferred inflows of resources related
to pensions from the following sources:
Deferred Outflows
of Resources
Difference between expected and actual economic experience $ 3,740,014
Changes in actuarial assumptions -
Difference between projected and actual investment earnings -
Contributions subsequent to the measurement date 4.533,809
Total 8.273.823
Deferred Inflows
of Resources
3,032
74,869
1,227,079
The City reported $4,533,809 as deferred outflows of resources related to pensions resulting from contributions
subsequent to the measurement date, and will be recognized as a reduction of the net pension liability for the
year ending September 30, 2025. Other amounts reported as deferred outflows and inflows of resources related
to pensions will be recognized in pension expense as follows:
For the Year Ended
September 30,
2025
2026
2027
2028
2029
Thereafter
Total
1,515,205
2,014,030
(681,821)
(412,380)
$ 2,435,034
The City participates in two defined -benefit other postemployment benefit (OPEB) plans: the Texas Municipal
Retirement System Supplemental Death Benefits Fund (TMRS SDBF), and its own single -employer retiree
health plan. Both are described in detail below.
The total OPEB liabilities of both plans are typically liquidated through the general fund and enterprise funds.
57
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
3)_ Other information (continued)
Other postemployment benefits (OPEB) (continued)
TMRS Supplemental Death Benefits Fund
Plan description — The City voluntarily participates in a single -employer, other postemployment benefit
(OPEB) plan administered by TMRS. The plan is a group -term life insurance plan known as the Supplemental
Death Benefits Fund (SDBF). The plan is established and administered in accordance with the TMRS Act
identically to the City's pension plan. SDBF includes coverage for both active and retired members, and assets
are commingled for the payment of such benefits. Therefore, the plan does not qualify as an OPEB Trust in
accordance with paragraph 4 of GASB Statement No. 75.
Benefits provided — The SDBF provides group -term life insurance to City employees who are active members
in TMRS, including or not including retirees. The City Council opted into this program via an ordinance, and
may terminate coverage under, and discontinue participation in, the SDBF by adopting an ordinance before
November 1 of any year to be effective the following January 1.
Payments from this fund are similar to group -term life insurance benefits and are paid to the designated
beneficiaries upon the receipt of an approved application for payment. The death benefit for active employees
provides a lump -sum payment approximately equal to the employee's annual salary (calculated based on the
employee's actual earnings for the 12-month period preceding the month of death). The death benefit for retirees
is considered an other postemployment benefit and is a fixed amount of $7,500.
Membership in the plan at December 31, 2024, the valuation and measurement date, consisted of:
Inactive employees or beneficiaries currently receiving benefits 132
Inactive employees entitled to but not yet receiving benefits 79
Active employees 417
Total 628
Contributions - The City contributes to the SDBF at a contractually required rate as determined by an annual
actuarial valuation, which was 0.19% for 2025 and 0.22% for 2023, of which 0.07% represented the retiree only
portion for each year, as a percentage of annual covered payroll. The rate is equal to the cost of providing one-
year term life insurance. The funding policy for the SDBF program is to assure that adequate resources are
available to meet all death payments for the upcoming year; the intent is not to prefund retiree term life insurance
during employee's entire careers. The City's contributions to the SDBF for the year ended September 30, 2024,
were $23,455 representing contributions for both active and retiree coverage, which equaled the required
contributions each year.
58
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
(3) Other information (continued)
Other postemployment benefits (OPEB) (continued)
OPEB liability - The City's total OPEB liability in the December 31, 2024 actuarial valuation was determined
using the following actuarial assumptions and inputs:
Inflation 2.50%
Salary increases 3.6% to 11.85% including inflation
Discount rate* 4.08%
Retirees'share of benefit -related costs $0
Administrative expenses All administrative expenses are paid through the Pension Trust and accounted
for under reporting requirements under GASB Statement No. 68.
Mortality rates - service retirees 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a
fully generational basis with scale LIMP.
Mortality rates - disabled retirees 2019 Municipal Retires of Texas Mortality Tables with a 4 year set -forward for
males and a 3 year set -forward for females. In addition, a 3.5% and 3% minimum
mortality rate will be applied to reflect the impairment for younger members who
become disabled for males and females, respectively. The rates are projected on
a fully generational basis by scale UMP to account for future mortality
improvements subject to the floor.
Other information
There were no benefit changes during the year.
* The discount rate was based on the Bond Buyer "20-Bond GO Index" rate closet to, but not later than December 31, 2024.
Note: The actuarial assumptions used in the December 31, 2024 valuation were based on the results of an actuarial experience
study for the period ending December 31, 2022.
Changes in the total OPEB liability — Total City's Total OPEB liability (TOL), based on the above actuarial
factors, as of December 31, 2024, the measurement and actuarial valuation date, was calculated as follows:
Balance at December 31, 2023
Changes for the year:
Service cost
Interest on the total OPEB liability
Changes of benefit terms
Difference between expected and actual experience
Change of assumptions
Benefit payments
Net changes
Balance at December 31, 2024
857,430
45,430
32,814
6,200
(53,082)
(19,470)
11,892
$ 869,322
Changes in assumptions and other inputs reflect a change in the discount rate from 3.77% to 4.08%.
59
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
(3) Other information (continued)
Other postemployment benefits (OPEB) (continued)
OPEB expense and deferred outflows of resources and deferred inflows of resources related to OPEB -
For the year ended September 30, 2025, the City recognized OPEB expense of $46,878. Also, as of September
30, 2025, the City reported deferred outflows and inflows of resources related to the TMRS OPEB from the
following sources:
Difference between expected and actual economic experience
Changes in actuarial assumptions
Difference between projected and actual investment earnings
Contributions subsequent to the measurement date
Total
Deferred Outflows Deferred Inflows
of Resources
of Resources
$ 9,009
$ 23,262
112,629
298,637
$ 121,638
$ 321.899
$0 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to the
measurement date will be recognized as a reduction of the total OPEB liability for the year ended September
30, 2025. Other amounts reported as deferred outflows and inflows of resources related to the TMRS OPEB
will be recognized in OPEB expense in future periods as follows:
For the Year Ended
September 30,
2025
2026
2027
2028
2029
Thereafter
Total
$ (37,489)
(46,313)
(67,583)
(41,904)
(3,836)
(3,136)
$ [ 200,261)
60
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
(3) Other information (continued)
City of Schertz retiree health other postemployment benefit plan
In addition to the TMRS OPEB, the City administers a single employer defined benefit healthcare plan for
retirees, established under legal authority of the City Charter. The City is the only employer participating in the
Plan. The Plan does not issue a publicly available financial report. No assets are accumulated in a trust that
meets the criteria in GASB Statement No. 75.
The City provides postemployment benefits for eligible participants enrolled in City -sponsored plans. The
benefits are provided in the form of an implicit rate subsidy where the City contributes towards the retiree health
premiums before achieving Medicare eligibility. While the plan offers retiree only rates, a very small implicit
liability still exists. Membership in the plan as of December 31, 2024, the valuation date, consisted of:
Inactive employees or beneficiaries currently receiving benefits 8
Inactive employees entitled to but not yet receiving benefits -
Active employees 376
Total 384
Current active employees must be eligible for service retirement under the Texas Municipal Retirement System.
To attain this eligibility, active employees must be at least age 60 with 5 years of service or have at least 20
years of employment with a City participating in TMRS. When a regular, full-time employee retires, they are
eligible to maintain their coverage in the City's group health coverage. The City does not provide an explicit
subsidy for retiree medical insurance. The liability for the City is due to the implicit rate.
The City made no direct contributions for monthly premiums. The retirees pay 100% of the monthly premiums,
which range based on the type of plan, from $5 for retiree only to $1,737 for a retiree and their family.
The City's Retiree Health OPEB Liability (TOL) as of December 31, 2024 was calculated as follows:
Balance at December 31, 2023
Changes for the year:
Service cost
Interest
Changes of benefit terms
Difference between expected and actual experience
Change of assumptions
Benefit payments
Net changes
Balance at December 31, 2024
2,242,715
207,210
86,564
33,237
(67,709)
(100,401)
158,901
$ 2,401,616
Changes of assumptions reflect a change in the discount rate from 3.77% as of December 31, 2024, to 4.08%
as of December 31, 2025. Additionally, the demographic and salary increase assumptions were updated to
reflect the 2023 TMRS Experience Study, and both the participation assumption and health care trend rates
assumptions were updated to reflect the plan's anticipated experience.
61
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
(3) Other information (continued]
City of Schertz retiree health other postemployment benefit plan (continued)
The following presents the TOL of the City, calculated using the discount rate of 4.08% as well as what the
City's TOL would be if it were calculated using a discount rate that is 1-percentage point lower (3.08%) and 1-
percentage point higher (5.08%) than the current rate.
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(3.08%) (4.08%) 5.08%
Total OPEB liability - retiree health $ 2,626,813 $ 2,401,616 $ 2,197,418
The following presents what the total OPEB of the City would be if it were calculated using healthcare cost
trend rates that are 1-percentage point lower or 1-percentage point higher than the current healthcare cost trends:
1% Decrease
Current Health
Cost Trend Rate
Assumption 1% Increase
Total OPEB liability - retiree health $ 2,115,278 $ 2,401,616 $ 2,741,036
For the year ended September 30, 2025, the City recognized OPEB expense of $225,089. Also, as of September
30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB
from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and actual economic experience $ 137,997 $ 133,239
Changes in actuarial assumptions 201,602 725,393
Difference between projected and actual investment earnings - -
Contributions subsequent to the measurement date 62,195 -
Total $ 401.794 858.63
$62,125 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to
the measurement date will be recognized as a reduction of the total OPEB liability for the year ending
September 30, 2025. Other amounts reported as deferred outflows and inflows of resources related to the City's
retiree health OPEB will be recognized in OPEB expense as follows:
For the Year Ended
September 30,
2026 $ (68,685)
2027 (68,685)
2028 (76,961)
2029 (70,084)
2030 (71,757)
Thereafter (162,861)
Total $ (519,033}
62
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
3 Other information continued
Joint ventures
Schertz/Seauin Local Government Corporation
The Schertz/Seguin Local Government Corporation is a public, nonprofit corporation organized to aid, assist,
and act on behalf of the cities of Schertz and Seguin in acquiring, constructing, maintaining, and operating a
water utility system. The participating governments have an ongoing financial responsibility to fund the
operation of the corporation through either purchase of services or by subsidizing the operations. Payments to
the corporation are generally for the purchase of water treatment and for covering the Corporation's debt service
requirements; they are reflected as "operating expenses" in the water and sewer fund and totaled $3,556,918
for the year ended September 30, 2025. Separate financial statements for the Schertz/Seguin Local Government
Corporation may be obtained from the City of Seguin, 210 East Gonzales Street, Seguin, Texas 78156.
The City of Schertz is jointly liable, together with the City of Seguin, for operating deficits and long-term debt
of the Schertz/Seguin Local Government Corporation. The Corporation had net revenue bonds outstanding in
the amount of $150,537,292 (as of September 30, 2024, the most recent year for which information is available)
to provide funds to build, improve, extend, enlarge and repair the Corporation's utility system, fund a reserve,
and pay the costs of bond issuance. The bond resolution pledges intergovernmental contract revenues from the
cities of Schertz and Seguin (the participating governments) to bond holders. Under the intergovernmental water
supply contract, the participating governments are unconditionally obligated to pay their respective shares of
annual contract revenue bond debt service from the operation of their respective utility systems.
The organizing documents for the Corporation provide that, in the event of dissolution, the net assets of the
Corporation will be equally divided among the Cities of Schertz and Cibolo. As such, the City's net investment
in the joint venture has been recorded in the water and sewer fund in the amount of $23,360,862 as of September
30, 2025.
Cibolo Vallev Local Government Cornoration
The Cibolo Valley Local Government Corporation (CVLGC) is a public, nonprofit corporation organized to
aid, assist, and act on behalf of the cities of Schertz and Cibolo in acquiring, constructing, maintaining, and
operating a water utility system. The participating governments have an ongoing financial responsibility to fund
the operation of the Corporation through either purchase of services or by subsidizing the operations. Payments
to the Corporation are generally for the purchase of water treatment and for covering the Corporation's debt
service requirements; they are reflected as "operating expenses" in the water and sewer fund and totaled
$300,000 for the year ended September 30, 2025. Separate financial statements for the CVLGC may be obtained
from the City of Schertz, 1400 Schertz Parkway, Schertz, Texas 78154.
The City of Schertz is jointly liable, together with the City of Cibolo, for operating deficits and long-term debt
of CVLGC. In the event of dissolution, the net assets of the Corporation will be equally divided among the
Cities of Schertz and Cibolo. As such, the City's net investment in the joint venture has been recorded in the
water and sewer fund in the amount of $1,084,277 as of September 30, 2025.
63
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
3) Other information (continued)
Commitments and contingencies
Tax increment financing - the Zone
The City is a principal in the City of Schertz Tax Increment Reinvestment Zone #2 (TIRZ), pursuant to Chapter
311 of the Texas Tax Code. Under the terms of the Zone agreement, the City of Schertz, Bexar County, and
San Antonio River Authority are funding infrastructure improvements through tax increment financing to the
Sedona Development Project.
At the time the Zone was created, the property tax base was "frozen" and increment taxes resulting from the
increases to property tax base are being used to finance Zone improvements. The total projected cost is a
combined figure of $66,000,000. Project costs of the developer will be funded up to 100% of the tax increment
generated by the City of Schertz, Bexar County, and San Antonio River Authority (SARA). The City of Schertz
(combined with SARA) have committed up to $46,177,456 of the total $66,000,000. The Zone has a statutory
termination date of December 31, 2041. The TIRZ has collected $8,378,436 from taxing entities (net
administrative reimbursements) and remitted $1,500,000 to the developer as of September 30, 2025.
380 agreements
The Chapter 380 Incentive program, authorized by Chapter 380 of the Texas Local Government Code, enables
the City of Schertz to provide grants or reimbursements from the City's general fund. To become eligible for
Chapter 380 incentives, projects must: create at least $100 million in new real and personal property; or generate
at least $35 million in gross sales that is subject to the collection of local sales and use tax. Businesses that have
a 380 incentive agreement with the City are eligible to receive a reimbursement of taxes paid for the year if
they have met the requirements outlined in the agreement by a certain date each year. For the fiscal year ended
September 30, 2025, the City did not reimburse any property taxes paid under the terms of a Chapter 380
agreement.
Economic development incentive agreements
The City of Schertz Economic Development Corporation (the SEDC) negotiates economic development
incentive agreements on behalf of the SEDC and the City of Schertz (the City) on an individual basis. As of
September 30, 2025, the City had 16 active incentive agreements.
On May 2, 2017, the City and the SEDC approved the Schertz Incentive Policy which outlines the City's
primary tools to attract commercial investment and promote economic development. Projects are selected on a
case -by -case basis in accordance with current policy and state laws at the discretion of the governing body. All
incentive agreements are formalized through a performance agreement with specified terms and recapture
criteria.
The SEDC incentive program, authorized by Chapters 501, 502, and 505 of the Texas local Government Code,
enables the SEDC to fund allowable projects from the collection of one-half percent of sales tax proceeds
collected in the City of Schertz. In accordance with state law, the SEDC incentive policy establishes grants and
loans for businesses that create primary jobs for the following categories: existing businesses (3 years of
operation within the City), small businesses (fewer than 50 full-time jobs or annual sales less than $10 million),
large impact businesses (up to $100 million in taxable property), and extra -large businesses (over $100 million
in taxable property).
64
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
(3) Other information (continued)
Commitments and contingencies (continued)
Economic development incentive agreements (continued)
The City and SEDC's outstanding incentive agreement grants are as follows:
SIDC - 501.101 (Primary Jobs):
Ace Mart
Caterpillar Expansion
Project Caterpillar
Sysco
SEDC- 501.103 (Infrastructure,
Boom Connect Ups ize
Boomerang L.ovette
Core 5
Freckles Schertz
Kellum Medical
Lookout Road
Main Street
MOB
Palapas Schertz
Schertz 312 Phase lI
Schertz Station, Ripps
SEDC - 501,152 (Parks):
Parks CIP
Total
Service concession agreement
FY 2024-2025
Amount
Estimated
Remaining Grant
$ 33,818 $ -
127,722 233,838
- 1,633,870
25,000
186,540
350,000
30,000
77,050
2,500,000
4,419,259
7,376,309
1,867,708
1,900,000
4,700,000
350,000
50,000
6,150,000
7,500,000
77,050
4,000,000
24,727,050
1,849,500 10,675,600
$ 9,412,349 $ 37,270,358
The City entered into an agreement with Young Men's Christian Association of Greater San Antonio (YMCA),
under which YMCA will operate and collect user fees from the Natatorium and outdoor pools through 2037.
YMCA will pay the City $100,000 annually over the course of the arrangement to cover costs of debt service
related to the facility; the present value of these installment payments is estimated to be $710,336. The City
will approve the rates and services that YMCA will provide, however, YMCA will retail all revenues earned
from the operation of the Natatorium. The YMCA will remit all revenues received from operating the outdoor
pools to the City with the exception of revenues earned from YMCA specific programs.
The City reports the outdoor pools and related equipment as capital assets recorded at historical cost. The City
reports a receivable in the amount of $710,336 on the government -wide statements at year end pursuant to the
service concession arrangement, and a deferred inflow of $278,698 for the present value of maintenance costs
estimated over the life of the service concession arrangement. The balance of these two amounts is recorded as
deferred inflow of resources.
65
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
(3) Other information (continued]
Litigation
The City is the subject of various claims and litigation that have arisen in the course of its operations.
Management is of the opinion that the City's liability in these cases, if decided adversely to the City, will not
have a material effect on the City's financial position.
Cibolo Creek Municipal Authority
The Cibolo Creek Municipal Authority (COMA) provides sewage treatment for the area in and around the City.
In fiscal year 2014, the City entered into an agreement with CCMA to construct a sewage treatment facility in
the southern portion of the City to primarily serve citizens of the City but also neighboring cities and future
development. Because the City would be the primary customer at this time, the agreement stipulates that the
City will pay all future debt service on the bonds issued by CCMA and will begin sharing costs of the project.
Should additional members join, the City's share of the costs would be reduced.
Future commitments to CCMA are as follows:
Year Ended
September 30,
2026
$ 505,725
2027
510,775
2028
356,325
2029
356,325
2030
358,500
2031-2035
1,781,750
2036-2037
300,975
Total
$ 4,170,375
Restatements and changes in accounting principles
The beginning net positions and fund balances have been corrected for the following:
Governmental Business -Type General Water and
Activities Activities Fund Sever System 11M
Beginning net position $
200,296,128 $
173,541,652
$ 17,947,703
$ 172,234,483
$ 1,307,169
Correction of error -accounts receivable
1,790,782
-
1,790,782.00
-
-
Correction oferror-capitalassets
167,613
4,186,594
167,613.00
4,006,518
180,076
Correction oferror-capital assets
(585,262)
-
-
-
-
Change in accounting principle - GASB 101
(1,271,930)
(221,445)
-
(78,897)
(142,548)
Total restatements
101,203
3,965,149
1,958,395
3,927,621
37,528
Beginning net position, as restated $
200,397,331 $
177,506,801
$ 19,906,098
$ 176,162,104
$ 1,344,697
66
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
(3) Other information (continued)
Construction commitments
The City of Schertz has entered into commitments for various projects as follows:
Project Cost
Extended
Future
Primary Government
to the City
to Date
Commitment
Governmental activities
Lookout Road Reconstruct $
7,309,092 $
437,015
$ 6,872,077
Main Street Improvements
25,880,893
2,875,948
23,004,945
Soccer Comp lex Irrigation
29,100
9,754
19,346
FIRE STATION 4
14,267,056
3,169,957
11,097,099
Energy Efficient Projects
1,264,323
14,323
1,250,000
Lower Seguin Road Reconstruction
18,200,000
2,394,887
15,805,113
Boening Road Reconstruction
3,240,000
203,920
3,036,080
2025 SPAM Projects
1,282,231
72,976
1,209,255
Kramer Fars Subdivision Rehabilitation
1,446,562
73,598
1,372,964
2024 SPAM RESURFACING
5,970,978
2,358,416
3,612,562
Buffalo Valley South Utility Replacement and Rehab
5,977,000
2,896,700
3,080,300
FM 1518 Aztec Lane
1,000,000
916,002
83,998
FM78 S. CHANNEL
300,000
12,226
287,775
Lookout Rd Signalization
60,000
52,285
7,715
Paving Grassy Areas
250,000
52,016
197,984
Building 11 Renovation
81,300
71,269
10,031
Total government commitments
86,558,535
15,611,290
70,947,244
FM1518 City Park Underground Drainage Upgrade $
6,545,000 $
4,291
$ 6,540,709
Wendy Swan Drainage Improvements
1,225,000
24,686
1,200,314
Woman Hollering Creek Wastewater Interceptor Main
13,438,870
12,668,967
769,903
Corbett Ground Storage
9,212,320
7,424,931
1,787,389
RIATA LIFT STATION RELOC
3,278,000
2,701,184
576,816
IH 35 Dedicated Water Transmission Main
32,075,000
1,327,060
30,747,940
FM1518 Utility Relocation
14,507,417
10,251,397
4,256,020
Northcliffe Country Club Estates Water Main Replac
8,733,400
54,253
8,679,147
IH 35 NEX North Utility Relocations
12,448,906
1,206,393
11,242,513
Backflow prevention device
80,000
54,181
25,819
CIBOLO WEST WASTEWATER TRUNK MAIN
26,743,000
242,924
26,500,076
Schwab Road to Eckhardt Road
1,620,000
12,540
1,607,460
Robin Hood Way Waterline Replacement
5,350,000
426,505
4,923,495
Bell North Drive Gravity Sewer Main Construction
1,000,000
69,250
930,750
Schertz Parkway 16" Replacement Waterline
1,795,000
45,621
1,749,379
Elevated Storage Tank Pipe Replacement
2,600,000
471
2,599,529
Elevated and Ground Storage Tank Painting
6,000,000
11,725
5,988,275
IH35 Ground Storage Tank and Pumping Station
14,550,000
24,136
14,525,865
Ware Seguin/Lower Seguin/Graytown/Pfeil Loop Line
4,892,302
223,557
4,668,745
Total business -type comm nitmnents
166,094,215
36,774,072
129,320,143
Total estimated future commitments $
252,652,750 $
52,385,362
$ 200,267,388
67
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2025
3) Other information (continued
Risk management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; and natural disasters. The City contracts with the Texas Municipal League Intergovernmental
Risk Pool, a public entity risk pool currently operating as a common risk management and insurance program
providing insurance coverage in the following areas: general liability, automobile liability and physical damage,
law enforcement liability, worker's compensation, real and personal property, mobile equipment, and errors
and omissions liability. TML is a multi -employer group that provides for a combination of risk sharing amount
pool participants and stop loss coverage. Contributions are set annually by the provider. Liability by the City is
generally limited to the contributed amounts. There were no significant increases or decreases in coverage from
the prior year. For the past three fiscal years, no claims or settlements have exceeded deductible amounts.
New accounting guidance
Significant new accounting guidance issued by the Governmental Accounting Standards Board (GASB) not yet
implemented by the City include the following:
GASB Statement No. 102, Certain Risk Disclosures — the objective of this statement is to provide users of
governmental financial statements with information about risks related to a government's vulnerabilities due to
certain concentrations or constraints that is essential to their analyses for making decisions or assessing
accountability. This statement will become effective for reporting periods beginning after June 15, 2024, and
the impact has not yet been determined.
GASB Statement No. 103, Financial Reporting Model Improvements — the objective of this statement is to
improve key components of the financial reporting model to enhance its effectiveness in providing information
that is essential for decision making and assessing a government's accountability. This statement also addresses
certain application issues. This statement will become effective for reporting periods beginning after June 15,
2025, and the impact has not yet been determined.
GASB Statement No. 104, Disclosure of Certain Capital Assets — the objective of this statement is to provide
users of governmental financial statements with essential information about certain types of capital assets. This
statement requires certain types of capital assets to be presented separately in the note disclosures, including
right -to -use assets related to leases. Subscription -based information technology arrangements, and public -
private or public -public partnerships. Other intangible assets are also required to be presented separately by
major class. Additional disclosures have also been required for capital assets held for sale. This statement will
become effective for reporting periods beginning June 15, 2025, and the impact has not yet been determined.
68
FINAL DRAFT
REQUIRED SUPPLEMENTARY INFORMATION
FINAL DRAFT
FINAL ®RAFT
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
For the year ended September 30, 2025
BUDGETED AMOUNTS
ORIGINAL FINAL
VARIANCE WITH
FINAL BUDGET -
ACTUAL POSITIVE
AMOUNTS (NEGATIVE)
REVENUES
Taxes
$ 38,313,308
38,313,308 $
43,833,937 $
5,520,629
Permits and fees
2,065,700
2,065,700
1,953,854
(111,846)
Service fees
2,906,022
2,906,022
2,833,131
(72,891)
Fines and fees
404,840
404,840
467,828
62,988
Intergovernmental
2,959,148
2,959,148
2,552,069
(407,079)
Investment earnings
950,000
950,000
940,915
(9,085)
Miscellaneous
692.000
692.000
996.957
304,957
Total revenues
48,291,018
48,291,018
53,578,691
5,287,673
EXPENDITURES
General government:
Council
215,639
215,639
232,779
(17,140)
City manager
1,032,488
1,032,488
1,067,877
(35,389)
Municipal court
452,060
452,060
431,358
20,702
311 customer service
96,039
96,039
132,994
(36,955)
Planning and caning
462,611
462,611
434,833
27,778
Legal
90,000
90,000
84,497
5,503
City secretary
373,045
373,045
289,858
83,187
Nondepartmental
2,552,107
2,552,107
1,915,311
636,796
Public affairs
699,073
699,073
618,019
81,054
Engineering
1,348,659
1,348,659
1,261,099
87,560
Economic development
609,589
609,589
526,452
83,137
Citizens assistance
192,687
67,666
265,299
(197,633)
Special events
55.000
55,000
50.067
4,933
Total general government
8,178,997
8,053,976
7,310,443
743,533
Public safety:
Police department
14,604,882
14,604,882
14,355,552
249,330
Fire department
9,412,656
9,412,656
8,894,949
517,707
Inspection
L495.647
1.495.647
1,455.599
40 048048
Total public safety
25,513,185
25,513,185
24,706,100
807,085
Public environment:
Streets
2,071,616
2,071,616
1,755,359
316,257
Total public environment
2,071,616
2,071,616
1,755,359
316,257
Parks and recreation:
Parks
2,612,911
2,737,932
2,510,589
227,343
Pools
666,368
666,368
658,327
8,041
Conuminity/civic center
638,452
638,452
631,735
6,717
Total parks and recreation
3,917,731
4,042,752
3,800,651
242,101
Cultural:
Library
1,558,704
1,558,704
1,533,945
24,759
Total cultural
1,558,704
1,558,704
1,533,945
24,759
70
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL — GENERAL FUND
For the year ended September 30, 2025
VARIANCE WITH
FINAL BUDGET -
BUDCETEDAMOUNTS
ACTUAL
POSITIVE
ORIGINAL
FINAL
AMOUNTS
(NEGATI%T-)
EXPENDITURES (CONTINUED)
Administration:
Information technology
$ 4,016,670
$ 4,146,720
$ 3,744,641
$ 402,079
Human resources
908,937
908,937
871,104
37,833
Finance
877,866
877,866
866,874
10,992
Purchasing and asset management
316,274
316,274
315,775
499
Building maintenance
1,855,208
1,960,208
2,233,320
(273,112)
Fleet service
1,458,231
1,458,231
1,611,048
(152,817)
Interfund charges
(3,394,458)
(3.394A58)
(3,393,598)
(860)
Total administration
6,038,728
6,273,778
6,249,164
24,614
Capital outlay
2,348,623
2,348,625
2,516,318
(167,693)
Total expenditures
49,627,584
49,862,636
47,871,980
1,990,656
Excess (deficiency) of revenues
over (under) expenditures
(1,336,566)
(1,571,618)
5,706,711
7,278,329
OTHER FINANCING SOURCES (USES)
Transfers in 98,940 98,940 282,976 184,036
Transfers out (28,818) (28 818] (1,477,241) (1,448,423)
Total other financing
sources (uses) 70,122 70,122 (1,194,265) (1,264,387)
NET CHANGE IN FUND BALANCE (1,266,444) (1,501,496) 4,512,446 6,013,942
FUND BALANCE - BEGINNING 17,947,703 17,947,703 17,947,703 -
RESTATEMENT - - 1,958,395 1,958,395
FUND BALANCE - ENDING $ 16,681,259 $ 16,446,207 $ 24,418,544 $ 7,972,337
71
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL — ECONOMIC DEVELOPMENT CORPORATION
For the year ended September 30, 2025
REVENUES
Taxes
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Administration
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing
sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
BUDGETED AMOUNTS
ORIGINAL FINAL
$ 7,668,608 $ 7,668,608 $
1,260,000 1,260,000
VARIANCE WITH
FINAL BUDGET -
ACTUAL
POSITIVE
AMOUNTS
(NEGATIVE)
11,298,737
$ 3,630,129
1,736,318
476,318
8,928,608 8,928,608 13,035,055 4,106,447
9,170,960 9,170,960 7,774,577 1,396,383
710,503 710.503 618,481 92,022
9,881,463 9,881,463 8,393,058 1,488,405
(952,855)
(952,855)
4,641,997
5,594,852
(6,820,000)
(6,820.0001
(1,849,500)
4,970,500
(6,820,000)
(6,820,000)
(1,849,500)
4,970,500
(7,772,855)
(7,772,855)
2,792,497
10,565,352
37,067,781
37,067,781
40,323,196
-
$ 29,294,926
$ 29,294,926 $
43,115,693 $
13,820,767
72
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
NOTE TO BUDGETARY SCHEDULES
September 30, 2025
Budgetary information — the budget is prepared in accordance with accounting principles generally accepted in the
United States of America. The City maintains strict budgetary controls. The objective of these controls is to ensure
compliance with legal provision embodied in the annual appropriated budget approved by the City Council and as
such is a good management control device. Annual budgets are adopted for the general fund, debt service fund,
economic development corporation fund, hotel occupancy tax fund, park fund tree mitigation fund, police forfeiture
fund, library advisory board fund, and the historical committee fund. Project length financial plans are adopted for
capital projects funds.
Budgetary preparation and control are exercised at the department level. Actual expenditures may not legally exceed
appropriations at the fund level. Appropriations lapse at year end.
For the fiscal year ended September 30, 2025, actual expenditures did not exceed budgeted expenditures at the
fund level for any of the City's funds.
Encumbrance accounting, in which appropriations are recorded as budgetary expenditures, is not utilized by the
City.
73
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
TEXAS MUNICIPAL RETIREMENT SYSTEM
For the year ended September 30, 2025
Total pension liability
Service cost
Interest (on the total pension liability)
Changes of benefit terms
Difference between expected and actual experience
Change of assumptions
Benefit payments, including refunds of employee
contributions
Net change in total pension liability
Total pension liability -beginning
Totalpension liability - ending (a)
Plan fiduciary net position
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds of employee
contnbutions
Administrative expense
Other
2024 2023 2022 2021
$ 5,987,060 $ 4,835,113 $ 4,576,714 $ 4,211,795
7,650,458 7,004,394 6,323,215 5,766,957
2,869,702 820,236 2,387,281 1,060,260
- (133,135) - -
(3,488,246) (3,574,272) (3,075,473) 2,8� 85,733)
13,018,974
8,952,336
10,211,737
8,153,279
112,090,714
103,138,378
92,926,641
84,773,362
$ 125,109,688 $
112,090,714 $
103,138,378 $
92,926,641
$ 5,383,484 $ 4,384,538 $ 4,133,310 $ 3,831,461
2,271,513 1,896,896 1,783,798 1,643,398
9,388,272 9,095,570 (5,958,648) 9,113,755
(3,488,246) (3,574,272) (3,075,473) (2,885,733)
(60,039) (57,691) (51,455) (42,101)
(1,404) (402) 61,401 288
Net change in plan fiduciary net position
13,493,580
11,744,639
(3,107,067)
11,661,068
Plan fiduciary net position - beginning
90,096,862
78,352,223
81,459,290
69,798,222
Plan fiduciary net position - ending (b)
$ 103,590,442 $
90,096,862 $
78,352,223 $
81,459,290
Net pension liability (a) - (b)
$ 21,519,246 $
21,993,852 $
24,786,155 $
11,467,351
Plan fiduciary net position
as a percentage of total pension liability
82.80°/y
R0.38%
75.97%
87.66%
Covered payroll
$ 32,450,187 $
27,072,303 $
25,497,976 $
23,477,118
Net pension liability as a percentage
of total covered payroll
(Lam
K24%
2z21 Q
48 ROA
74
FINAL DRAFT
2020 2019
2018 2017 2016 2015
$ 3,761,994
$ 3,421,878 $
3,301,265 $
3,073,538
$ 2,855,745 $
2,724,337
5,326,206
4,898,478
4,505,483
4,111,517
3,763,562
3,556,428
(154,592)
(108,478)
34,393
416,585
139,216
120,434
-
263,015
-
-
-
59,193
(2,372,023)
(2,244,447)
(1,914,159)
(1,843,774)
(1,581,272)
(1,570,211)
6,561,585
6,230,446
5,926,982
5,757,866
5,177,251
4,890,181
78,211,777
71,981,331
66,054,349
60,296,483
55,119,232
50,229,051
$ 84,773,362
$ 78,211,777 $
71,981,331 $
66,054,349
$ 60,296,483 $
55,119,232
$ 3,327,434
$
3,163,340 $
3,033,936
$
2,793,644
$
2,627,335 $
2,542,565
1,474,466
1,380,585
1,326,518
1,232,232
1,152,864
1,095,260
4,760,749
8,093,416
(1,540,890)
5,999,805
2,602,572
53,742
(2,372,023)
(2,244,447)
(1,914,159)
(1,843,774)
(1,581,272)
(1,570,211)
(30,767)
(45,681)
(29,768)
(31,080)
(29,385)
(32,727)
(1,200)
(1,373)
(1,554)
(1,575)
1,583)
(1,61Gj
7,158,659
10,345,840
874,083
8,149,252
4,770,531
2,087,013
62,639,563
52,293,723
51,419,640
43,270,388
38,499,857
36,412,844
$ 69,798,222
$
62,639,563 $
52,293,723
$
51,419,640
$
43,270,388 $
38,499,857
$ 14,975,140
$
15,572,214 $
19,687,608
$
14,634,709
$
17,026,095 $
16,619,375
V-34%
$ 21,063,794
71.09%
$
$Q.Q9°/Il
19,722,641 $
72&5-a
18,896,766
] 04J 9%
$
7.7_ $4a
17,603,310
KJAYn
$
212bya
16,478,620 $
0-851s
15,648,114
IlZG 21°ls
M20i
] 0 32%
75
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
TEXAS MUNICIPAL RETIREMENT SYSTEM
For the year ended September 30, 2025
Actuarially determined contributions
Contnbutions in relation to the
actuarially detemrined contributions
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of
covered payroll
2025 2024 2023 2022
$ 5,875,394 $ 5,206,428 $ 4,349,322 $ 4,245,872
5,875,394 5,206,428 4,349.322 4,245,872
$ 34,662,376 $ 31,140,466 $ 26,535,541 $ 26,163,046
1251s 1L Z2°ls 16392ls iUZZa
Note to Schedule of Contributions
Valuation date:
Actuarially determined contribution rates are calculated as of December 31 and become effective in January,13 months later.
Methods and assumption used to determine contribution rates:
Actuarial cost method
Entry age normal
Amortization method
Level percentage of payroll, closed
Remaining amortization period
21 years (longest amortization ladder)
Asset valuation method
10 year smoothed market, 12% soft corridor
Inflation
2.50%
Salary increases
3.60°/u to 11.85% including inflation
Investment rate of return
6.75%
Retirement age
Experience -based table of rates that vary by age. Last updated for the 2023 valuation pursuant to an
experience study of the period ending 2022.
Mortality
Post -retirement: 2019 Municipal Retirees of Texas Mortality Tables. Male rates are multiplied by 103%
and female rates are matliplied by 105%. The rates are projected on a fully generational basis with scale
MP-2021 (with immediate convergence).
Pre -retirement: PUB(]0) mortality tables, with the 110% of the Public Safety table used for males and
100% of the General Eanployee table used for females. The rates are projected on a fully generational
basis with scale MP-2021(with immediate convergence).
Other information:
There were no benefit changes during the year.
76
FINAL DRAFT
2021
2020
2019
2018
2017
2016
$ 3,700,948
$ 3,235,479
$ 3,129,413 $
2,971,592 $
2,756,511
$ 2,592,593
3,700,948
3.235.479
3,129,413
_2971,592 _
2,756,511
2,592,593
$ 22,879,083 $ 20,401,412 $ 19,521,269 $ 18,605,654 $ 17,347,849 $ 16,175,988
16irA 15.86% 16ML 1LMg ilE202a IED3 s
77
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
SCHEDULE OF CHANGES IN TMRS OTHER POSTEMPLOYMENT BENEFIT LIABILTIY
AND RELATED RATIOS
For the year ended September 30, 2025
Total OPEB liability
Service cost
Interest on the total OPEB liability
Changes of benefit terms
Difference between expected and
actual experience
Change of assumptions
Benefit payments
Net change in total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending
Covered -employee payroll
Total OPEB liability as a percentage of
covered payroll
2024
2023
2022
2021
$ 45,430 $
37,901 $
73,900 $
70,429
32,814
31,378
21,768
21,248
6,200
(5,407)
(7,347)
(1,360)
(53,082)
45,858
(462,756)
42,012
(19,470)
(16,243)
(15,290)
(11,739)
11,892
93,487
(389,725)
120,590
857,430
763,943
1,153,668
1,033,078
$ 869,322 $
857,430 $
763,943 $
1,153,668
$ 32,450,187 $
27,072,303 $
25,497,946 $
23,477,118
2.68%
3.17%
3.00%
4-91
GASB 75 requires 10 fiscal years of data to be provided in this schedule. This is the eighth year of implementation of GASB
75. The City will develop the schedule prospectively.
78
FINAL DRAFT
2020 2019 2018 2017
$ 50,554 $
33,528 $
37,794 $
29,926
22,915
26,904
21,182
20,123
(4,382)
(105,282)
86,276
-
158,118
148,494
(54,027)
57,257
(4,213)
(31945)
(3,779)
(3,521)
222,992
99,699
87,446
103,785
810,086
710,387
622,941
519,156
$ 1,033,078 $
810,086 $
710,387 $
622,941
$ 21,063,794 $
19,722,641 $
18,896,766 $
17,603,310
4.90%
4.11 %
3 M-g
141s
79
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
SCHEDULE OF CHANGES IN CITY RETIREE HEALTH OTHER POSTEMPLOYMENT
BENEFIT LIABILITY AND RELATED RATIOS
For the year ended September 30, 2025
Total OPEB liability
Service cost
Interest on the total OPEB liability
Changes of benefit terms
Difference between expected and
actual experience
Change of assumptions
Benefit payments
Net change in total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending
Covered -employee payroll
Total OPEB liability as a percentage of
covered payroll
2024
2023
2022
2021
$ 207,210 $
207,231 $
230,479 $
161,830
86,564
93,119
48,122
50,064
33,237
28,527
(4,764)
134,106
(67,709)
(231,625)
(495,992)
(191,684)
(100,401)
(100,296)
(64,389)
(88,569)
158,901
(3,044)
(286,544)
65,747
2,242,715
2,245,759
2,532,303
2,466,556
$ 2,401,616 $
2,242,715 $
2,245,759 $
2,532,303
$ 32,278,495 $
26,795,229 $
25,255,936 $
22,290,477
7.44%
8.37%
8.89%
10.87%
GASB 75 requires 10 fiscal years of data to be provided in this schedule. This is the eighth year of implementation of GASB
75. The City will develop the schedule prospectively.
Note to Schedule
Valuation date: December 31, 2023
Methods andassumption usedto determine contribution rates:
Actuarial cost method Fntry age normal
Discount rate 4.08% as of December 31, 2024
Inflation 2.50%
Salary increases 3.601/o to 11.85% including inflation
Demographic assumptions Based on the 2023 experience study conducted for the Texas Municipal Retirement System (TMRS).
Mortality For healthy retirees, the gender -distinct 2019 Municipal Retirees of texas mortality tables are used, with
male rates multiplied by 103% and female rates multiplied by 105%. The rates are projected on a fully
generational basis using the ultimate mortality improvement rates in the MP-2021 table to account for
future mortality improvements.
Health care trend rates Initial rate of 7.20% declining to an ultimate rate of4.25% after 15 years.
Participation rates For all non -Medicare retirees, 251/o if retiring fromage 50 to 64.
Other information The discount rate changed from 3.77% as of December 31, 2023 to 4.25% as of December 31, 2024.
80
FINAL DRAFT
2020 2019
$ 141,084 $ 125,648 $
60,561 78,646
2018 2017
121,821 $ 107,517
67,947 69,435
4,341
(343,086)
14,962
-
161,146
275,398
(81,106)
96,092
(64,499)
(59,401)
(57,530)
(42,189)
302,633
77,205
66,094
230,855
2,163,923
2,086,718
2,020,624
1,789,769
$ 2,466,556 $
2,163,923 $
2,086,718 $
2,020,624
$ 20,870,983 $
19,521,924 $
18,974,951 $
16,068,891
11.82%
11.08%
11.000/0
12.57%
81
FINAL DRAFT
OTHER SUPPLEMENTARY INFORMATION
FINAL DRAFT
FINAL DRAFT
COMPARATIVE SCHEDULES — GOVERNMENTAL FUNDS
General Fund is the City's primary operating fund which accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
Economic Development Corporation collects sales taxes to support business development and expansion
within the City.
Debt Service Fund accounts for the resources accumulated and payments made and interest on long-term
general obligation debt of governmental funds.
Capital Projects Fund accounts for the acquisition and construction of major capital facilities financed from
bond proceeds, grants, and transfers from other funds.
American Rescue Plan Act Fund records revenue and expenditures related to the City's COV D-19 funding
from the American Rescue Plan Act.
COMBINING STATEMENTS AND INDIVIDUAL FUND SCHEDULES —
NONMAJOR GOVERNMENTAL FUNDS
Hotel Occupancy Fund — will account for proceeds of hotel occupancy taxes to be used strictly for those kinds of
programs that promote the tourism industry.
Park Fund — will account for revenues from developer's fees (in lieu of park land dedication), grants, and donations
and is designed to monitor and manage improvement of the City's park system.
Tree Mitigation Fund — will account for revenues from permits, grants, and donations to preserve and replace trees
in the City.
Treasury Forfeiture Fund — will account for revenue received from drug related cases in conjunction with other
law enforcement agencies within the jurisdiction of the U.S. Treasury department.
Justice Forfeitures Fund — will account for revenue received from drug related cases in conjunction with other
law enforcement agencies within the jurisdiction of the U.S. Department of Justice.
State Forfeiture Fund — will account for revenue received from drug related cases in conjunction with other law
enforcement agencies within the jurisdiction of the State Forfeiture Fund.
Grant Fund — will account for revenue and expenditures related to federal and state grant programs.
Library Advisory Board — to account for certain fees generated at the library to be used by the Board for general
improvements to the library.
Historical Committee Fund — will account for funds received for the preservation of the history of the City.
Capital Recovery Roadways Fund — to account for a fee assessed for capital recovery on new construction.
85
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
GENERAL FUND
September 30, 2025
(with comparative totals for 2024)
ASSETS
Cash and cash equivalents
Investments
Receivables (net of allowances)
Taxes
Accounts and other
Due from other funds
Inventory
Restricted assets:
Cash and cash equivalents
Total assets
LIABILITIES
Accounts payable
Accrued salaries and benefits
Retainage Payable
Customer deposits
Due to other governments
Due to other funds
Unearned revenues
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES
Nonspendable for:
Inventory
Restricted for:
Police and public safety/municipal court
Municipal court
PEG capital fees
Animal control
Scholarships
Committed for:
Civic center/SIED
Assigned for:
Property replacement
Subsequent year's budget
Unassigned
Total fund balances
Total liabilities, deferred inflows of resources, and fund
balances
2025
$ 16,840,907
2,638,072
6,127,744
2,165,643
644,353
171,259
2024
$ 14,004,790
2,499,161
3,293,402
1,134,923
1,376,444
285,571
157,539 110,791
$ 28,745,517 $ 22,705,082
$ 1,899,625
$ 2,446,518
909,766
777,467
77,191
33,027
85,382
50,043
74,099
31,498
3,046,063
3,338,553
1,280,910 1,418,826
1,280,910 1,418,826
171,259 285,571
416,416
409,637
647,172
715,579
135,581
136,899
79,234
47,461
173,619
149,097
1,388,247 1,260,939
1,054,301
1,007,626
2,564,504
2,596,149
17,788,211
11,338,745
24,418,544
17,947,703
$ 28,745,517 $ 22,705,082
86
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
GENERAL FUND
For the year ended September 30, 2025
(with comparative totals for 2024)
REVENUES
Taxes
Permits and fees
Service fees
Fines and fees
Intergovernmental
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES
Current
General government
Public safety
Public environment
Parks and recreation
Cultural
Administration
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
NEr CHANGE IN FUND BALAN CE
FUND BALANCES - BEGINNING
110.1IFINY1IMJt210UY
FUND BALANCES - ENDING
2025 2024
$ 43,833,937
$ 34,041,974
1,953,854
2,627,370
2,833,131
2,339,769
467,828
366,823
2,552,069
2,940,640
940,915
1,251,166
996,957
897,538
53.578,691 44,465.280
7,310,443
7,106,636
24,706,100
23,365,331
1,755,359
2,518,012
3,800,651
4,161,603
1,533,945
1,429,406
6,249,164
5,688,426
2,516,318
1,771,018
47.871980
46,040.432
5,706,711 (1,575,152)
282,976
(1,477,241)
(1,194,265)
4,512,446
285,239
285,239
(1,289,913)
17947,703 19,237,616
1958 395
$ 24,418,544 $ 17,947,703
87
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
ECONOMIC DEVELOPMENT CORPORATION
September 30, 2025
(with comparative totals for 2024)
ASSETS
Cash and cash equivalents
Investments
Receivables (net of allowances)
Taxes
Accounts and other
Total assets
LIABILITIES
Accounts payable
Total liabilities
FUND BALANCES
Restricted for:
Economic development
Total fund balances
Total liabilities and fund balances
2025
2024
$ 38,106,233 $
36,851,691
2,419,226
2,330,549
2,552,972
1,141,814
41,333
7,949
$ 43,119,764 $
40,332,003
$ 4,071 $
8,807
4,071
8,807
43,115,693 40,323,196
43,115,693 40,323,196
$ 43,119,764 $ 40,332,003
88
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
ECONOMIC DEVELOPMENT CORPORAITON
For the year ended September 30, 2025
(with comparative totals for 2024)
REVENUES
Taxes
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES
Current
General government
Administration
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALAN CE
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
2025
$ 11,298,737
1,736,318
13,035,055
7,774,577
618,481
8,393.058
2024
$ 6,698,059
1,868,124
1,101
8,567,284
384,286
557,505
941,791
4,641,997 7,625,493
(1,849,500)
(298,131)
(1,849,500)
(298,131)
2,792,497
7,327,362
40,323,196
32,995,834
$ 43,115,693
$ 40,323,196
89
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
DEBT SERVICE FUND
September 30, 2025
(with comparative totals for 2024)
ASSETS
Cash and cash equivalents
Receivables, net of allowance
Taxes
Total assets
LIABELITIFS
Accounts payable
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Interest payable
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES
Restricted for:
Debt service
Total fund balances
Total liabilities, deferred inflows of resources,
and fund balances
2025 2024
$ 1,391,373 $ 2,029,913
196,164 195,433
$ 1,587,537 $ 2,225,346
$ 400 $ -
400 -
159,744 -
196,164 195,433
355,908 195,433
1,231,229 2,029,913
1,231,229 2,029,913
$ 1,587,537 $ 2,225,346
90
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
DEBT SERVICE FUND — BUDGET AND ACTUAL
For the year ended September 30, 2025
(with comparative actual totals for 2024)
VARIANCE WITH
2025
FINAL BUDGET -
2024
BUDGETED AMOUNTS
ACTUAL
POSITIVE
ACTUAL
ORIGINAL
FINAL
AMOUNTS
(NEGATIVE)
AMOUNTS
REVENUES
Property taxes
$ 10,270,000
$ 10,270,000
$ 9,239,261
$ (1,030,739)
$ 8,917,461
Investment income
105,000
105,000
100,303
(4,697)
195,912
Miscellaneous
100 000
100.000
100.000
221.136
Total revenues
10,475,000
10,475,000
9,439,564
(1,035,436)
9,334,509
EXPENDITURES
Debt service:
Principal
7,055,000
7,055,000
7,015,000
40,000
5,850,000
Interest and fiscal charges
4,486,012
4,486,012
3,227,327
1,258,685
2,667,861
Bond issue costs
4200
4.2
-
4,200
5 000
Total expenditures
11,545,212
11,545,212
10,242,327
1,302,885
8,522,861
Excess (deficiency)of revenues
over(under)expenditures
(1,070,212)
(1,070,212)
(802,763)
267,449
811,648
OTHER FINANCING SOURCES (USES)
Issuance ofbonds
-
-
Premiumon issuance ofbonds
-
-
-
-
Transfers in
4,079
4,079
104,407
Transfers out
-
-
-
Total other financing
sources (uses)
4,079
4,079
104,407
NET CHANGE IN FUND BALANCE
(1,070,212)
(1,070,212)
(798,684)
271,528
916,055
FUND BALANCE -BEGINNING
1,846,111
1,846,111
2,029,913
-
1,113,858
FUND BALANCE - ENDING
$ 775,899
$ 775,899
$ 1,231,229
$ 455,330
$ 2,029,913
91
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
CAPITAL PROJECTS FUND
September 30, 2025
(with comparative totals for 2024)
ASSETS
Cash and cash equivalents
Total assets
LIABILITIES
Accounts payable
Retainage payable
Total liabilities
FUND BALANCES
Restricted for:
Capital improvement
Committed for:
Capital projects
Total fund balances
Total liabilities and fund balances
2025
$ 68,027,666
$ 68,027,666
$ 386,325
2024
$ 41,622,628
$ 41,622,628
$ 78,995
386,325 78,995
67,641,341 37,654,911
- 3,888,722
67,641,341 41,543,633
$ 68,027,666 $ 41,622,628
92
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
CAPITAL PROJECTS FUND
For the year ended September 30, 2025
(with comparative totals for 2024)
REVENUES
Intergovernmental
Investment earnings
Total revenues
EXPENDITURES
Administration
Capital outlay
Debt service:
Bond issue costs
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Issuance of debt
Premium on issuance of debt
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
2025
2,166,319
2,166,319
255,940
7,877,460
141,719
8,275,119
2024
1,379,778
1,379,778
240,989
2,256,823
163,613
2,661,425
(6,108,800) 1,281,647)
27,385,000
1,531,795
3,493,792
r 204,079)
32,206,508
26,097,708
41,543,633
$ 67,641,341
19,165,000
998,613
(94,609)
3,094
20,072,098
18,790,451
22,753.182
$ 41,543,633
93
FINAL DRAFT
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2025
ASSETS
Cash and cash equivalents
Accounts receivable, net of allowance
Total assets
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Due to other funds
Total liabilities
Fund balances
Restricted for
Tourism development
Parks and tree mitigation
Police forfeiture
Roadways
Historical committee and library
Unassigned
Total fund balances
Total liabilities and fund balances
SPECIAL REVENUE FUNDS
HOTEL
OCCUPANCY PARK
FUND FUND
TREE TREASURY
MITIGATION FORFEITURES
$ 4,162,351 $ 608,811 $
154,252 -
$ 4,316,603 $ 608,811 $
1,408,844 $ 201,329
1,408,844 $ 201,329
4,316,603 - - -
- 608,811 1,408,844 -
- - 201,329
4,316,603 608,811 1,408,844 201,329
$ 4,316,603 $ 608,811 $ 1,408,844 $ 201,329
94
FINAL DRAFT
SPECIAL REVENUE FUNDS
LIBRARY HISTORICAL
JUSTICE STATE GRANT ADVISORY COMMITTEE
FORFEITURES FORFEITURES FUND BOARD FUND
CAPITAL
PROJECTSFUND
TOTAL
CAPITAL NONMAJOR
RECOVERY GOVERNMENTAL
ROADWAYS FUNDS
$ 272,270 $ 79,027 $ 380,576 $ 86,075 $ 23,923 $ 5,553,779 $ 12,776,985
- - - - - - 154,252
$ 272,270 $ 79,027 $ 380,576 $ 86,075 $ 23,923 $ 5,553,779 $ 12,931,237
- $ - $ - $ 4,824 $ 4,824
644,353 - - - 644,353
- 644.353 - - 4,824 649.177
4,316,603
2,017,655
272,270 79,027 - - - - 552,626
- - - - - 5,548,955 5,548,955
- - 86,075 23,923 - 109,998
- - (263,777) - - - (263,777)
272,270 79,027 (263,777) 86,075 23,923 5,548,955 12,282,060
$ 272,270 $ 79,027 $ 380,576 $ 86,075 $ 23,923 $ 5,553,779 $ 12,931,237
95
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
For the year ended September 30, 2025
SPECIAL REVENUE FUNDS
HOTEL
OCCUPANCY
PARK
TREE TREASURY
FUND
FUND
MITIGATION FORFEITURE
REVENUES
Occupancy tax
$ 886,356
$ -
$ - $ -
Permits and fees
-
60,116
218,482 -
Service fees
-
-
- -
Fines and fees
-
-
-
Intergovemmenta;
-
-
- -
Investment earnings
165,507
24,310
58,676 -
Miscellaneous
Totalrevenues
1,051,863
84.426
277.158
EXPENDITURES
Current
General government
92,142
-
- -
Public safety
-
-
- -
Public environment
-
-
103,686 -
Cultural
-
-
- _
Administration
-
-
- -
Capital outlay
_ -
17.738
-
Total expenditures
92.142
17,738
103.686 -
Excess (deficiency) of revenues
over (under) expenditures
959,721
66,688
173,472 -
OTHER FINANCING SOURCES (USES)
Transfers in
-
-
- -
Transfers out
(82,976)
Total other financing sources (uses)
(82,976)
-
-
NET CHANGE IN FUND BALANCES
876,745
66,688
173,472 -
FUND BALANCES - BEGINNING
3,439,858
542,123
1,235,372 201.329
FUND BALANCES - ENDING
$ 4,316,603 $
608,811 $
1,408,844 $ 201,329
96
FINAL DRAFT
CAPITAL
SPECIAL REVENUE FUNDS
PROJECTS FUND
TOTAL
LIBRARY
HISTORICAL
CAPITAL
NONMAJOR
JUSTICE
STATE GRANT
ADVISORY
COMMITTEE
RECOVERY
GOVERNMENTAL
FORFEITURES
FORFEITURES FUND
BOARD
FUND
ROADWAYS
FUNDS
$ -
$ - $ -
$ -
$ -
$ -
$ 886,356
-
- -
-
-
-
278,598
-
- -
19,937
321
724,878
745,136
31,147
- -
-
-
-
31,147
-
- 42,253
-
-
-
42,253
10,401
- -
3,553
-
229,080
491,527
-
- -
46
-
46
41.548
- 42,253
23.536
321
953,958
2,475,063
-
- 42,253
-
1,829
59,800
196,024
-
- -
-
-
-
103,686
-
- -
13,423
-
-
13,423
-
-
-
-
-
17,738
-
- 42.253
13.423
1.829
59.800
33Q871
41,548
- -
10,113
(1,508)
894,158
2,144,192
-
- 2,717
-
-
-
2,717
-
- -
-
-
-
(82,976)
-
- _ 2,717
-
-
-
(80,259j
41,548
- 2,717
10,113
(1,508)
894,158
2,063,933
230.722
79,027 (266,494)
75,962
25,431
4,654,797
10.218,127
$ 272,270
$ 79,027 $ (263,777)
$ 86,075
$ 23,923
$ 5,548,955
$ 12,282,060
97
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
HOTEL OCCUPANCY FUND — BUDGET AND ACTUAL
For the year ended September 30, 2025
(with comparative actual totals for 2024)
VARIANCE WITH
2025
FINAL BUDGET -
2024
BUDGETED AMOUNTS
ACTUAL
POSITIVE
ACTUAL
ORIGINAL
FINAL
AMOUNTS
(NEGATIVE)
AMOUNTS
REVENUES
Occupancy tax $
1,100,000
$ 1,100,000
$ 886,356
$ (213,644)
$ 849,265
Investment earnings
126,500
126,500
165,507
39,007
154,833
Total revenues
1,226,500
1,226,500
1,051,863
(174,637)
1,004,098
EXPENDITURES
Current:
General government
170,322
170,322
92,142
78,180
100,389
Administration
-
-
-
-
80,265
Capital outlay
-
-
-
-
-
Total expenditures
170,322
170,322
92,142
78,180
180,654
OTHER FINANCING SOURCES (USES
Transfers out
-
-
(82,976)
(82,976)
-
Net change in fund balance
1,056,178
1,056,178
959,721
(252,817)
823,444
FUND BALANCES - BEGINNING
3,439,858
3,439,858
3,439,858
182,809
2,616,414
FUND BALANCES - ENDING $
4,496,036
$ 4,496,036
$ 4,316,603
$ (70,008)
$ 3,439,858
98
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
PARK FUND — BUDGET AND ACTUAL
For the year ended September 30, 2025
(with comparative actual totals for 2024)
BUDGETED AMOUNTS
ORIGINAL FINAL
VARIANCE WITH
2025 FINAL BUDGET - 2024
ACTUAL POSITIVE ACTUAL
AMOUNTS (NEGATIVE) AMOUNTS
REVENUES
Licenses andpemuts $ 150,000 $ 150,000 $ 60,116 $ (89,884) $ 446,138
Investment earnings 4,750 4,750 24,310 19,560 8,975
Total revenues 154,750 154,750 84,426 (70,324) 455,113
EXPENDITURES
Capital outlay - - 17,738 (17,738) -
Total expenditures - 17,738 (17,738) -
NET CHANGE IN FUND BALANCE 154,750 154,750 66,688 (52,586) 455,113
FUND BALANCES - BEGINNING 87,010 87,010 542,123 - 87,010
FUND BALANCES - ENDING $ 241,760 $ 241,760 $ 608,811 $ 367,051 $ 542,123
99
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
TREE MITIGATION FUND - BUDGET AND ACTUAL
For the year ended September 30, 2025
(with comparative actual totals for 2024)
BUDGETED AMOUNTS
ORIGINAL
FINAL
2025
ACTUAL
AMOUNTS
VARIANCE WITH
FINAL BUDGET - 2024
POSITIVE ACTUAL
(NEGATIVE) AMOUNTS
REVENUES
Licenses andpernrits $ 100,000 $ 100,000 $ 218,482 $ 118,482 $ 555,380
Investment earnings 49,250 49,250 58,676 9,426 62,728
Total revenues 149,250 149,250 277,158 127,908 618,108
EXPENDITURES
Current:
Parks and recreation 85,000 85.000 103,686 (18,686) 81,429
Total expenditures 85,000 85,000 103,686 (18,686) 81,429
NET CHANGE IN FUND BALANCE 64,250
64,250
173,472
146,594 536,679
FUND BALANCES - BEGINNING 709,443
709,443
1,235,372
- 698,693
FUND BALANCES - ENDING $ 773,693 $
773,693 $
1,408,844 $
146,594 $ 1,235,372
100
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
TREASURY FORFEITURES FUND
For the year ended September 30, 2025
(with comparative totals for 2024)
REVENUES
Fines and fees
Total revenues
EXPENDITURES
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
2025 2024
$ - $ 195,925
195,925
195,925
201,329 5,404
$ 201,329 $ 201,329
101
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
JUSTICE FORFEITURES FUND
For the year ended September 30, 2025
(with comparative totals for 2024)
REVENUES
Fines and fees
Investment earnings
Total revenues
EXPENDITURES
Current:
Public safety
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
2025 2024
$ 31,147 $ 23,519
10,401 11,312
41,548 34,831
43,544
43,544
41,548 (8,713)
230,722 239,435
$ 272,270 $ 230,722
102
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
STATE FORFEITURES FUND
For the year ended September 30, 2025
(with comparative totals for 2024)
REVENUES
Fines and fees
Total revenues
EXPENDITURES
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
2025 2024
$ - $ 4,707
4,707
- 4,707
79,027 74,320
$ 79,027 $ 79,027
103
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
LIBRARY ADVISORY BOARD - BUDGET AND ACTUAL
For the year ended September 30, 2025
(with comparative actual totals for 2024)
VARIANCE WITH
2025
FINAL BUDGET -
2024
BUDGETED AMOUNTS
ACTUAL
POSITIVE
ACTUAL
ORIGINAL
FINAL
AMOUNTS
(NEGATIVE)
AMOUNTS
REVENUES
Service fees
$ 20,000
$ 20,000
$ 19,937
$ (63)
$ 19,008
Investment earnings
1,500
1,500
3,553
2,053
4,115
Miscellaneous
-
-
46
46
69
Total revenues
21,500
21,500
23,536
2,036
23,192
EXPENDITURES
Current:
Cultural
20,500
31,500
13,423
18,077
16,880
Capital outlay
-
-
-
-
6,585
Total expenditures
20,500
31,500
13,423
18,077
23,465
NET CHANGE IN FUND BALANCE
1,000
(10,000)
10,113
(16,041)
(273)
FUND BALANCES - BEGINNING
75,962
75,962
75,962
-
76,235
FUND BALANCES - ENDING
$ 76,962
$ 65,962
$ 86,075
$ (16,041)
$ 75,962
104
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
HISTORIAL COMMITTE BOARD — BUDGET AND ACTUAL
For the year ended September 30, 2025
(with comparative actual totals for 2024)
REVENUES
Sale ofinerchandise
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES)
BUDGETED AMOUNTS
ORIGINAL FINAL
$ 1,000 $ 1,000 $
1,000 1,000
VARIANCE WITH
2025 FINAL BUDGET - 2024
ACTUAL POSITIVE ACTUAL
AMOUNTS (NEGATIVE) AMOUNTS
321 $ (679) $ 215
321 (679) 215
11,750
11,750
1,829
9,921
4,217
11,750
11,750
1,829
9,921
4,217
(10,750)
(10,750)
(1,508)
(10,600)
(4,002)
Transfers in
10,750
10,750 -
10,750 -
Totalotherfmancing sources (uses)
10,750
10,750
10,750
NET CHANGE IN FUND BALANCE
-
- (1,508)
150 (4,002)
FUND BALANCES - BEGINNING
25,431
25,431 25,431
- 29,433
FUND BALANCES - ENDING $
25,431 $
25,431 $ 23,923 $
150 $ 25,431
105
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
CAPITAL RECOVERY ROADWAYS
For the year ended September 30, 2025
(with comparative totals for 2024)
REVENUES
Service fees
Investment earnings
Total revenues
EXPENDITURES
Current:
General government
Capital outlay
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
2025 2024
$ 724,878 $ 1,483,039
229,080 217,401
953,958 1,700,440
59,800 -
- 57,305
59,800 57,305
894,158 1,643,135
4,654,797 3,011,662
$ 5,548,955 $ 4,654,797
106
FINAL DRAFT
FINAL DRAFT
STATISTICAL SECTION
FINAL DRAFT
STATISTICAL SECTION
This part of the City of Schertz, Texas' annual comprehensive financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the City's overall financial health.
Contents Page Numbers
Financial Trends
These schedules contain trend information to help readers
understand how the City's financial performance and well-being
have changed over time. 110 - 119
Revenue Capacity
These schedules contain information to help the reader assess
the City's most significant local revenue sources. 120 - 126
Debt Capacity
These schedules present information to help the reader assess
the affordability of the City's current levels of outstanding debt and
the City's ability to issue additional debt in the future. 128 - 138
Demographic and Economic Information
These schedules offer demographic and economic indicators
to help the reader understand the environment within which the
City's financial activities take place. 139 - 140
Operating Information
These schedules contain service and infrastructure data to help
the reader understand how the information in the City's financial
report relates to the services the City provides and the activities it
performs. 142 - 149
109
FINAL DRAFT
GOVERNMENTAL ACTIVITES
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities -
Net position
BUSINESS -TYPE ACTIVITIES
Net investment in capital assets
Restricted
Unrestricted
Total business -type activities -
Net position
CITY OF SCHERTZ, TEXAS
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
2016
2017
2018
2019
$ 74,237,004
$ 84,537,238 $
89,266,885 $
89,869,766
17,095,325
20,437,116
23,391,047
28,088,355
2.231.341
1,673,567
2.351,236
Z920.717
$ 64,210,231 $ 70,361,035 $ 64,871,629 $ 68,271,075
- 10,565,463 12,626,526 13,232,638
15,737,470 20,781,291 20,870,671 33,254,008
$ 79,947,701 $ 101,707,789 $ 98,368,826 $ 114,757,721
PRIMARY GOVERNMENT
Net investment in capital assets $ 138,447,235 $ 154,898,273 $ 154,138,514 $ 158,140,841
Restricted 17,095,325 31,002,579 36,017,573 41,320,993
Unrestricted 17,968,811 22,454,858 23,221,907 36,174,725
Total primary government net position $ 173,511,371 $ 208,355,710 $ 213,377,994 $ 235,636,559
110
FINAL DRAFT
TABLE
2020 2021 2022 2023 2024 2025
$ 88,959,102
$ 98,444,714
$ 109,746,340
$ 136,442,093
$ 142,891,901
$ 169,821,032
28,664,438
28,342,438
32,745,688
40,311,118
50,212,797
53,603,325
4.157_801
10.744,127
11..055,015
T768.985
7,191,430
7,797,897
$ 75,969,319 $ 83,941,882 $ 94,997,863 $ 114,831,425 $ 125,867,091 $ 128,188,819
15,071,599 5,408,320 5,408,320 6,640,756 6,640,756 7,679,648
30,570,717 39,406,798 42,791,680 39,140,966 41,033,805 77,929,702
$ 121,611,635 $ 128,757,000 $ 143,197,863 $ 160,613,147 $ 173,541,652 $ 213,798,169
$ 164,928,421
$ 182,386,596
$ 204,744,203
$ 251,273,518
$ 268,758,992
$ 298,009,851
43,736,037
33,750,758
38,154,008
46,951,874
56,853,553
61,282,973
34,728,518
50,150,925
53,846,695
46,909,951
48,225,235
85,727,599
$ 243,392,976
$ 266,288,279
$ 296,744,906
$ 345,135,343
$ 373,837,780
$ 445,020,423
III
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
CHANGE IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
2016
2017
2018
2019
EXPENSES
Governmental activities
General government
$ 6,557,778
$ 6,253,926
$ 7,421,918
$ 6,534,013
Public safety
12,141,968
13,061,120
13,899,278
15,448,886
Public environment
4,147,653
4,460,540
4,930,723
5,495,192
Parks and recreation
2,034,964
2,859,974
2,707,292
3,022,278
Cultural
954,871
1,004,747
1,042,085
1,119,650
Health
570,204
776,494
724,780
516,890
Administration
1,954,276
3,052,102
3,067,983
3,853,255
Interest and other fees
2,240,783
2,355,714
2,125,687
_ 2,196,180
Total governmental activities
expeses
30,602,497
33,824,617
35,919,746
38,186,344
Business -type activities
Water and sewer
20,269,111
21,346,078
23,579,854
25,608,390
EMS
5,004,110
6,006,178
6,110,407
6,529,631
Total business -type activities
expenses
25,273,221
27,352,256
29,690,261
32,138,021
Total primary government expenses
55,875,718
61,176,873
65,610,007
70,324,365
PROGRAM REVENUES
Governmental activities
Charges for services
General government
1,507,252
874,737
1,013,698
947,538
Public safety
2,415,537
4,131,548
4,104,911
3,177,329
Public environment
-
-
-
138,920
Parks and recreation
788,727
544,460
640,231
484,495
Cultural
326,079
330,412
313,668
311,575
Health
30,308
29,742
27,930
21,101
Operating grants and contributions
342,485
552,878
776,942
692,042
Capital grants and contributions
6,227,664
10,043,483
4,744,489
1,319,793
Total governmental activities
programrevenues
11,638,052
16,507,260
11,621,869
7,092,793
Business -type activities
Charges for services
Water and sewer
22,003,794
25,390,713
27,099,237
27,333,475
EMS
5,921,223
6,366,894
6,092,559
6,596,618
Capital grants and contributions
2,831,126
6,111,474
3,132,348
1,975,524
Total business -type activities
programrevenues
30,756,143
37,869,081
36,324,144
35,905,617
Total primary government
programrevenues
42,394,195
54,376,341
47,946,013
42,998,410
112
FINAL DRAFT
2020 2021
TABLE 2
2022 2023 2024 2025
$ 10,310,363
$ 7,298,193
$ 7,093,652
$ 8,244,956
$ 8,678,145
$ 16,388,166
16,575,191
19,008,871
19,580,703
22,195,399
22,719,864
26,692,587
8,825,099
5,364,408
8,545,834
6,188,351
8,802,846
8,145,230
3,012,134
3,395,458
3,543,978
4,253,278
5,539,108
5,208,597
1,089,564
1,087,975
1,168,815
1,380,793
1,520,759
1,627,098
596,288
-
-
-
-
-
3,419,407
4,360,229
4,455,947
5,363,700
6,343,146
7,198,709
2,028,065
1,797,520
2,490,474
2,555,917
2,508,098
3,334,685
45,856,111
42,312,654
46,879,403
50,182,394
56,111,966
68,595,072
24,349,219
25,280,964
27,833,986
30,088,159
32,088,184
33,234,866
6,051,296
7,784,670
8,234,500
10,176,945
11,718,474
12,885,532
30,400,515
33,065,634
36,068,486
40,265,104
43,806,658
46,120,398
76,256,626
75,378,288
82,947,889
90,447,498
99,918,624
114,715,470
836,246
651,211
686,470
470,879
418,302
3,346,260
3,276,129
3,079,945
3,922,957
4,067,387
4,068,931
765,098
850,201
902,712
798,955
661,078
2,038,419
177,313
331,174
528,886
652,727
753,302
932,437
569,727
299,944
285,792
310,859
315,222
324,597
452,580
26,304
-
-
-
-
130,242
2,113,673
1,925,939
3,970,029
2,425,937
3,579,794
3,657,665
531,096
7,959,576
6,987,788
18,456,911
3,293,373
18,408,023
8,264,767
15,334,061
17,329,785
27,150,716
14,655,853
27,506,908
29,709,279
27,724,929
30,677,566
31,589,783
32,562,394
33,577,314
6,114,891
7,709,027
9,420,909
9,503,821
10,231,081
11,990,185
292,408
6,935,191
6,143,957
14,180,619
8,431,343
33,036,134
36,116,578
42,369,147
46,242,432
55,274,223
51,224,818
78,603,633
44,381,345
57,703,208
63,572,217
82,424,939
65,880,671
106,110,541
113
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
CHANGE IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
2016
2017
2018
2019
Net (expense) revenues
Governmental activities
$ (18,964,445)
$ (17,317,357)
$ (24,297,877)
$ (31,093,551)
Business -type activities
5A81922
10,516,825
6,633,883
3,767,596
Total primary government
net expenses
(13,481,523)
(6,800,532)
(17,663,994)
(27,325,955)
GOVERNMENTAL REVENUES AND
OTHER CHANGES IN NET POSITION
Governmental activities
Taxes
Ad valorem
15,131,997
16,166,006
17,018,950
19,151,005
Sales taxes
10,921,489
10,844,503
12,668,555
12,506,879
Franchise fees
2,250,815
2,208,373
2,393,182
2,357,150
Hotel/motel
544,871
499,466
520,424
514,679
Mixed drink
43,073
42,699
43,395
60,518
Investment income
187,847
448,408
909,985
1,470,258
Miscellaneous
309,275
182,754
283,496
984,257
Transfers
29,211
9,399
19,186
t815251
Total governmental activities
29,418,578
30,40UM
33,857,173
36,963,221
Business -type activities
Interest and investment earnings
102,642
211,466
532,367
855,216
Miscellaneous
522,221
475,733
453,374
267,788
Transfers
(29,211)
(9,399)
(19,186)
81,525
Total business -type activities
595,652
677,800
966,555
1,204,529
Total primary government
30,014,230
31,079,408
34,823,728
38,167,750
CHANGES IN NET POSITION
Governmental activities
10,454,133
13,084,251
9,559,296
5,869,670
Business -type activities
6,078,574
11.194.625
7,600,438
4,972.125
Total primary government
$ 16,532,707 $
24, 72 8.876 $
17,159,734
10,841.795
114
FINAL DRAFT
TABLE 2 continued
2020 2021 2022 2023 2024 2025
$ (37,591,344)
$ (26,978,593)
$ (29,549,618) $
(23,031,678) $
(41,456,113)
$ (41,088,164)
5,716,063
9,303,513
10,173,946
15,009,119
7.418,160
32,483,235
(31.875,281)
(17,675,080)
(19,375,672)
(8,022.559)
_ (34,03T953]
(8.604,929)
19,844,912
21,463,804
22,495,628
25,118,429
27,147,745
27,717,962
14,432,152
16,838,731
18,075,733
19,646,841
20,095,955
33,895,921
2,305,225
2,305,108
2,574,041
2,593,660
2,354,657
2,669,138
268,946
518,921
804,132
1,059,808
849,265
886,356
70,139
68,730
83,391
88,347
93,524
87,760
804,674
104,613
709,898
4,678,690
5,569,055
5,704,453
767,779
1,408,270
1,138,775
820,465
1,119,844
781,729
(316,216)
169,768
38,493,827
42.708.177
45,565.382
54 006,240
57,230,045
71,913,087
431,555
68,354
314,546
1,927,277
4,535,559
3,977,901
706,296
754,268
675,739
479,479
974,786
-
-
-
316,216
-
-
(169,768)
1,137,851
822,622
1,306,501
2,406,756
5,510,345
3,808,133
39,631,678
43,530,799
46,871,883
56,412,996
62,740,390
75,721,220
902,503
15,729,584
16,015,764
30,975,153
15,773,932
30,824,923
6.853.914
$ 7.756.41725,855,Z12
10,126,135
11.480,441
$ 27.496.2ll $
17,415.284
48.390,M $
12,928,505
28,$
36291.368
67,116,221
115
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
2016
2017
2018
2019
GENERAL FUND
Nonspendable
$ 220,503 $
98,263 $
94,876 $
131,925
Restricted
1,929,636
1,994,905
2,027,125
2,196,037
Conunitted
-
-
-
-
Assigned
752,503
854,198
3,080,557
5,580,626
Unassigned
8,509,467
9,976,169
12,548,013
9,228,612
Total general fund
$ 11,412,109 $
12,923,535 $
17,750,571 $
17,137,200
ALL OTHER GOVERNMENTAL
FUNDS
Restricted $ 27,252,908 $ 35,721,031 $ 37,772,240 $ 39,009,399
Cornuritted 342,519 454,376 454,376 687,779
Assigned 6,743 - - -
Unassigned - - - -
Total all other governmental funds $ 27,602,170 $ 36,175,407 $ 38,226,616 $ 39,697,178
116
FINAL DRAFT
TABLE 3
2020
2021
2022
2023
2024
2025
$ 114,787 $
162,463 $
182,186 $
342,248 $
285,571 $
171,259
1,996,357
2,151,411
2,260,350
2,220,694
1,458,673
1,452,022
687,780
907,676
1,021,594
1,155,078
1,260,939
1,388,247
1,972,479
1,501,398
1,356,230
3,518,655
3,603,775
3,618,805
12,197,575
11,755,619
12,246,539
12,000,941
11,338,745
17,788,211
$ 16,968,978 $
16,478,567 $
17,066,899 $
19,237,616 $
17,947,703 $
24,418,544
$ 32,024,252 $
33,329,710 $
69,222,391 $
60,666,303 $
91,307,033 $ 125,341,599
4,071,942
7,985,798
5,543,146
3,888,722
3,888,722 -
(2,071,518)
(675,043)
(648,630)
(644,974)
(266,494) (263,777)
$ 34,024,676 $
40,640,465 $
74,116,907 $
63,910,051 $
94,929,261 $ 125,077,822
117
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
CHANGE IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
2016
2017
2018
2019
REVENUES
Taxes
$ 28,865,727
$ 29,720,578
$ 32,632,702
$ 34,590,008
Pemvts and fees
1,493,336
2,540,045
2,557,056
1,635,461
Service fees
1,789,321
2,132,299
2,159,193
2,070,293
Fines and fees
1,441,474
1,217,621
1,049,989
953,614
Intergovernmental
401,494
397,073
609,131
1,057,681
Otherrevenues
1,741,436
1,897,153
1,761,285
2,454,515
Total revenues
35,732,788
37,904,769
40,769,356
42,761,572
EXPENDITURES
Current:
General government
5,657,998
5,394,918
6,327,133
5,881,647
Public safety
11,048,767
11,870,636
12,728,222
13,985,443
Public environment
1,007,326
1,128,979
1,136,052
1,112,041
Parks and recreation
1,528,356
1,885,915
1,697,872
2,393,487
Cultural
869,162
921,870
955,153
1,018,109
Health
480,175
672,934
628,054
498,871
Administration
2,015,573
2,912,855
3,015,239
3,795,233
Capital outlay
10,192,398
5,492,196
7,708,625
9,083,572
Debt service:
Principal
4,040,975
4,473,174
4,744,116
4,565,000
Interest and fiscal charges
1,896,911
2,113,679
2,099,190
2,069,215
Bond issue costs
449,358
214,280
129,417
189,082
Payment to refund agent
-
-
-
5,489,912
Total expenditures
39.186.999
37.081.436
41,169,073
50.081,612
Excess (deficiency) of revenues
over (under) expenditures (3,454,211) 823,333 (399,717) (7,320,040)
OTHER FINANCING SOURCES (USES)
Bond and debt issuances
10,750,000
8,870,000
4,887,829
4,620,000
Refunding bond issuance
4,185,000
-
6,035,000
5,225,000
Premium (discount) on bond issue
590,432
381,931
269,212
640,115
Payment to refund agent
(4,215,482)
-
(6,159,623)
-
Transfers in
863,583
438,803
777,487
120,503
Transfers out
(834,371)
(429,404)
(758,302)
202,028)
Total other financing sources (use!
11,339,162
9,261,330
5,051,603
10,403,590
Net change in fund balances $
7,884,951 $
10,084,663 $
4,651,886
$ 3,083,550
Debt service as a percentage of
noncapital expenditures
20.5%
20.4%
22.2%
17.3%
118
FINAL DRAFT
TABLE 4
2020
2021
2022
2023
2024
2025
$ 36,802,913
$ 41,150,087 $
43,905,170 $
48,455,688 $
50,506,759 $
65,258,291
1,807,264
1,812,895
2,341,493
2,329,324
3,628,888
2,232,452
2,583,598
2,540,995
2,953,707
2,806,284
3,842,031
3,578,267
880,657
643,482
754,558
659,885
590,974
498,975
951,604
4,582,874
4,247,523
3,061,631
4,013,661
7,857,530
1,572,473
1,512,883
1,848,673
5,499,155
6,688,899
6,801,456
44,598,509
52,243,216
56,051,124
62,811,967
69,271212
86,226,971
10,364,369
6,580,915
6,515,632
7,324,976
7,547,457
15,281,044
15,366,593
18,107,418
19,098,373
19,579,764
23,408,875
24,706,100
1,270,894
1,382,185
1,766,558
1,782,809
2,599,441
1,859,045
2,102,083
2,534,679
2,659,914
3,227,365
4,161,603
3,800,651
1,044,891
1,059,984
1,159,024
1,294,948
1,446,286
1,547,368
589,616
-
-
-
-
-
3,353,634
4,459,223
4,597,488
5,202,419
6,326,196
7,123,585
9,276,886
5,215,256
13,096,740
24,142,094
5,075,332
15,950,688
4,929,544
4,955,000
4,805,000
5,850,000
5,850,000
7,015,000
2,136,523
1,801,467
1,779,157
2,893,986
2,667,861
3,227,327
4,200
140,140
558,911
4,200
168,613
141,719
50.439,233
46,236,267
56,036,797
7130 561
59,251.664
80,652,527
(5,840,724)
6,006,949
14,327
(8,490,594)
10,019,548
5,574,444
-
136,535
31,540,000
-
19,165,000
27,385,000
-
7,555,000
4,070,000
-
-
-
-
629,992
3,200,544
-
998,613
1,531,795
-
(8,223,452)
(4,443,881)
-
-
-
4,500,169
6,395,386
3,339,565
869,840
402,538
3,783,564
(4,500,169)
(6,375,032)
(3,655,781)
(869,249)
(402,538)
(3,613,796)
-
118,429
34,050,447
591
20,163,613
29,086,563
$ (5,840,724) $
6,125,378 $
34,064,774
$ (8,490,003)
$ 30,183,161 $
34,661,007
16.2%
19.9%
17.1%
30.3%
17.6%
16.0%
119
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
GOVERNMENTAL FUNDS TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
FISCAL
YEAR
PROPERTY TAX
2016
$ 15,105,480 $
2017
16,125,537
2018
17,007,148
2019
19,150,782
2020
19,726,451
2021
21,418,597
2022
22,367,873
2023
25,067,032
2024
27,122,341
2025
27,717,962
SALES AND USE FRANCHISE MIXED
TAX TAX BEVERAGE
BINGO
10,921,489 $
2,250,815 $
43,072 $
1
10,844,503
2,208,373
42,668
31
12,668,555
2,393,182
43,384
11
12,506,879
2,357,150
60,518
24
14,432,152
2,305,225
70,139
24
16,838,731
2,305,108
68,730
24
18,075,733
2,574,041
83,391
24
19,646,841
2,593,660
88,347
-
20,095,955
2,354,657
93,524
-
33,895,921
2,669,138
87,760
-
120
FINAL DRAFT
HOTEL
OCCUPANCY TOTAL
544,870 $
28,865,727
499,466
29,720,578
520,424
32,632,704
514,679
34,590,032
268,946
36,802,937
518,921
41,150,111
804,132
43,905,194
1,059,808
48,455,688
849,265
50,515,742
886,356
65,257,137
TABLE 5
121
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
TOTAL WATER AND SEWER CONSUMPTION AND RATES
LAST TEN FISCAL YEARS
TABLE 6
FISCAL
TOTAL WATER AND
WATER AND SEWER
YEAR ENDED
SEWER CONSUMPTION
WATER AND SEWER
INITIAL RATE PER
SEPTEMBER 30,
(IN GALLONS)
BASE RATE
1,000 GALLONS
2025
2,257,230,800
42.81
8.56
2024
2,425,608,700
42.35
8.41
2023
2,363,742,000
40.85
8.13
2022
1,700,418,300
39.04
7.79
2021
1,629,336,300
38.15
6.97
2020
1,982,664,200
38.15
6.97
2019
1,622,930,500
37.15
6.84
2018
1,583,312,400
35.61
6.53
2017
1,583,462,300
34.35
6.21
2016
1,509,250,000
30.11
5.73
Source: Schertz Utility System
122
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
PRINCIPAL WATER AND SEWER CONSUMERS
LAST TEN FISCAL YEARS
2025
2016
TABLE 7
PERCENTAGE OF
PERCENTAGE OF
TOTAL WATER
TOTAL CITY
TOTAL WATER
TOTAL CITY
CONSUMPTION
WATER
CONSUMPTION
WATER
TAXPAYER
(IN GALLONS)
RANK
CONSUMPTION
(IN GALLONS
RANK
CONSUMPTION
City of Cibolo
15,031,600
1
0.62%
WHC Schertz Apts, LLC
12,848,700
2
0.41%
Homestead Residential Master
9,970,800
3
0.38%
Sycamore Creek Apartments
9,277,000
4
0.34%
Pecan Grove TxI IC
8,293,700
5
0.28%
8,690,000
2
0.58%
Crossvme Master Community
6,830,500
6
0.25%
Sebastian Apartments
6,025,200
7
0.22%
4,678,100
10
0.31%
Apg Texas I LP
5,441,400
8
0.22%
4,868,800
9
0.33%
QT South, LLC
5,362,700
9
0.22%
Legacy Oaks Apartments
5,023,000
10
0.21%
Caterpillarinc.
15,108,800
1
1.01%
Big Time Management Properties
8,248,200
3
0.55%
SYSCO
5,389,300
4
0.36%
Legacy at Forest Ridge
5,387,700
5
0.36%
Caterpillar Inc.
5,394,600
6
0.36%
Wal-Mart Supercenter#3391
5,022,100
7
0.34%
Manco Structures LTD
1,921,100
8
0.33%
Total
84,104,600
3.22%
64,698,700
4.52%
Total City Water Consumption
2,425,608,700
1,497,065,900
Source: Schertz Utility System
123
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(UNAUDITED)
TABLE 8
CITY DIRECT RATES
OVERLAPPING SCHOOL DISTRICTS
SCHERTZ-
CIBOLO
FISCAL
BASIC
DEBT
UNIVERSAL
COMAL
YEAR
RATE
SERVICE
TOTAL
CITY ISD
ISD
2025
0.3326
0.1574
0.4900
1.1256
1.0748
2024
0.3324
0.1548
0.4872
1.1392
1.2746
2023
0.3470
0.1480
0.4950
1.3246
1.2746
2022
0.3517
0.1604
0.5121
1.3950
1.2920
2021
0.3470
0.1651
0.5121
1.4106
1.2757
2020
0.3496
0.1650
0.5146
1.4200
1.3200
2019
0.3497
0.1649
0.5146
1.4900
1.3200
2018
0.3248
0.1662
0.4910
1.4900
1.3900
2017
0.3168
0.1743
0.4911
1.4700
1.3900
2016
0.3159
0.1752
0.4911
1.4900
1.3900
OVERLAPPING COUNTIES
BEXAR
COMMUNITY
FISCAL
BEXAR
HOSPITAL
RIVER
COLLEGE
COMAL
GUADALUPE
YEAR
COUNTY
DISTRICT
AUTHORITY
DISTRICT
COUNTY
COUNTY
2025
0.2763
0.2762
0.0183
0.1492
0.2690
0.2627
2024
0.2763
0.2762
0.0184
0.1492
0.2262
0.2731
2023
0.2624
0.2762
0.0184
0.1492
0.2847
0.3439
2022
0.2763
0.2762
0.0186
0.1492
0.3140
0.3799
2021
0.2624
0.2762
0.0186
0.1492
0.3224
0.3854
2020
0.2774
0.2762
0.0186
0.1492
0.3224
0.3319
2019
0.2774
0.2762
0.0186
0.1492
0.2952
0.3319
2018
0.2928
0.2762
0.0173
0.1492
0.3078
0.3799
2017
0.2928
0.2762
0.0173
0.1492
0.2928
0.3851
2016
0.2929
0.2762
0.0173
0.1492
0.2929
0.3851
124
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
CURRENT AND NINE YEARS AGO
(UNAUDITED)
TAXPAYER
TAXABLE
ASSESSED
VALUE
SYSCO Central Texas
$ 153,333,010
Caterpillar Inc.
138,438,996
Sun life Assurance Company of Canada
113,370,335
Amazon Corn Services Inc.
86,066,000
Republic Beverage Company
63,862,720
MIT Schertz Parkway LP
59,581,077
Eastgroup Properties LP
46,781,521
WHC Schertz Apts LLC
32,600,000
DGlndustrial Portfolio II Property Owner LP
25,661,224
AR AMZ 1150 Schwab Rd LLC
22,500,000
US Real Estate, LP
Shell US Gas and Power LLC
San Antonnio MTA LP
SC Schertz LLC
H.E. Butt Grocery Co.
Visionary Properties
Totals $ 742,194,883
Total taxable assessed value $ 7,900,676,187
Source: Guadalupe, Bexar, and Comal Appraisal Districts
2025
1;7:11►1
1
2
3
4
5
6
7
8
9
10
PERCENTAGE
OF TOTAL CITY
TAXABLE
TAXABLE
ASSESSED
ASSESSED
VALUE
VALUE
1.94°/u
$ 98,606,500
1.75%
148,835,540
1.43%
1.090/0
130,180,924
0.81%
47,547,466
0.75%
0.59°/u
0.41%
0.32%
0.28%
57,155,244
27,250,420
24,351,699
23,430,800
20,524,572
15,736,627
9.39%
$ 593,619,792
$ 3,375,850,131
2016
RANK
3
1
2
5
4
6
7
8
9
10
TABLE 9
PERCENTAGE
OF TOTAL CITY
TAXABLE
ASSESSED
VALUE
f
2.92%
4.41%
3.86%
1.41%
1.69%
0.81 %
0.72%
0.69%
0.61%
0.47%
125
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
TABLE 10
COLLECTED WITHIN
FISCAL YEAR OF LEVY TOTAL COLLECTIONS TO DATE
FISCAL
TAXES LEVIED
YEAR ENDED
FOR THE
SEPTEMBER 30,
FISCAL YEAR
AMOUNT
2025
$ 28,969,659
$ 28,699,318
2024
28,354,039
28,021,525
2023
26,144,518
25,757,953
2022
22,951,478
22,775,565
2021
22,011,090
21,787,625
2020
20,854,329
20,758,493
2019
19,922,568
19,825,244
2018
18,010,824
17,899,825
2017
17,356,822
17,241,556
2016
16, 23 8,180
16,160, 248
COLLECTIONS
PERCENTAGE
INSUBSEQUENT
PERCENTAGE
OF LEVY
YEARS
AMOUNT
OF LEVY
99.07%
$ -
$ 28,699,318
99.07%
98.83%
(56,314)
27,965,210
98.63%
98.52%
(36,735)
25,721,218
98.38%
99.23%
115,380
22,890,945
99.74%
98.98%
26,406
21,814,031
99.10%
99.54%
6,527
20,765,020
99.57%
99.51%
92,209
19,917,453
99.97%
99.38%
75,000
17,974,825
99.80%
99.34%
74,923
17,316,479
99.77%
99.52%
59,242
16,218,083
99.88%
126
FINAL DRAFT
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
TAXABLE ASSESSED VALUE
LAST TEN FISCAL YEARS
(UNAUDITED)
FISCAL
TAXABLE
YEAR ENDED
VALUE
RESIDENTIAL
COMMERCIAL
TAX-EXEMPT
OTHER
SEPTEMBER 30,
JANUARY 1,
PROPERTY
PROPERTY
PROPERTY
PROPERTY
2025
2024
$ 3,784,470,844
$ 2263,909,270
$ 1,656,208,660
$ 196,087,413
2024
2023
4,664,462,438
2,345,387,513
(386,038,551)
222,037,649
2023
2022
4,734,929,478
2,047,253,554
(784,132,143)
742,293,503
2022
2021
3,618,134,708
1,317,486,482
(961,929,765)
232,196,469
2021
2020
3,060,963,760
1,505,592,717
(716,028,336)
276,109,231
2020
2019
3,004,686,341
1,613,615,732
(716,028,336)
250,185,870
2019
2018
2,860,333,982
1,401,636,211
(621,773,006)
260,571,835
2018
2017
2,049,067,806
2,344,365,139
(757,265,921)
146,860,809
2017
2016
1,895,085,016
2,269,590,522
(649,173,041)
132,002,406
2016
2015
1,702,601,947
2,087,223,204
(544,328,535)
130,353,515
*Taxable Assessed Value is before any applicable freeze adjustments
Source: Bexar, Comal and Guadalupe County Appraisal Districts
128
FINAL DRAFT
TOTAL
TAXABLE
ASSESSED
VALUE*
TOTAL
DIRECT
TAX RATE
$ 7,900,676,187
0.4900
7,617,926,151
0.4872
6,740,344,392
0.4950
4,205,887,894
0.5121
4,126,637,372
0.5121
4,152,459,607
0.5146
3,900,769,022
0.5146
3,783,027,833
0.4911
3,647,504,903
0.4911
3,375,850,131
0.4974
TABLE 11
129
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
GOVERNMENTAL ACTIVITIES
GENERAL CERTIFICATES
FISCAL OBLIGATION OF
YEAR BONDS OBLIGATION
2025
$ 42,540,000
$ 39,115,000 $
2024
49,860,745
44,612,349
2023
54,504,618
25,983,440
2022
58,837,302
27,869,333
2021
40,390,000
14,200,000
2020
44,620,000
15,415,000
2019
48,320,000
16,235,000
2018
52,752,896
13,636,966
2017
56,613,614
9,011,415
2016
56,352,272
4,057,189
FINANCING
TAX NOTES ARRANGEMENT
-
54,614
-
81,921
-
109,228
155,000
136,535
345,000
25,695
530,000
25,699
715,000
34,264
1,230,000
25,147
1,740,000
58,321
BUSINESS -TYPE ACTIVITIES
CERTIFICATES
REVENUE OF
BONDS OBLIGATION
$ 20,260,000
- 22,590,898
- 23,529,237
24,216,388
10,655,000
11,200,000
- 12,330,000
13,211,178
8,174,779
8,331,966
130
FINAL DRAFT
TABLE 12
BUSINESS -TYPE ACTIVITIES
GENERAL
TOTAL
PERCENTAGE
OBLIGATION
FINANCING
TAX
PRIMARY
OF GROSS
PER
BONDS
ARRANGEMENT
NOTES
GOVERNMENT
INCOME
CAPITA
$ 1,940,000
$ -
$
$ 103,855,000
5.40%
2,371
3,263,722
163,843
120,546,171
6.73%
2,742
4,087,062
245,764
-
108,432,042
5.82%
2,521
5,111,592
327,685
-
116,471,528
5.24%
2,729
2,895,000
475,121
-
68,906,656
4.25%
1,628
3,685,000
134,662
150,000
75,575,357
4.50%
1,799
4,445,000
199,421
460,000
82,545,120
5.60%
1,932
2,127,657
289,553
765,000
83,532,514
5.98%
2,028
2,533,626
92,721
1,065,000
78,746,302
6.22%
1,996
3,014,595
162,262
1,360,000
75,076,605
6.39%
1,979
131
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
GENERAL BONDED DEBT OUTSTANDING
LESS:
GENERAL
CERTIFICATES
AMOUNTS
FISCAL
OBLIGATION
OF
AVAILABLE FOR
YEAR
BONDS
OBLIGATION
DEBT SERVICE
TOTAL
2025
$ 44,480,000
$ 59,375,000
$ (1,231,229) $
102,623,771
2024
53,124,467
67,203,247
(1,786,712)
118,541,002
2023
58,591,680
49,512,677
(867,965)
107,236,392
2022
63,948,894
52,085,721
(1,550,080)
114,484,535
2021
43,285,000
24,855,000
(934,899)
67,205,101
2020
46,223,908
15,801,473
(1,051,874)
60,973,507
2019
54,687,960
16,834,029
(1,084,908)
70,437,081
2018
54,880,553
13,636,966
(809,427)
67,708,092
2017
59,147,240
9,011,415
(924,989)
67,233,666
2016
59,366,897
4,057,189
(813,306)
62,610,780
132
FINAL DRAFT
TABLE 13
PERCENTAGE OF
ACTUAL TAXABLE
TAXABLE
VALUE OF
PER
ASSESSED
PROPERTY
CAPITA
POPULATION
VALUE
1.30%
$ 2,310
44,428
$ 7,900,676,187
1.56%
2,742
43,239
7,617,926,151
1.59%
2,493
43,010
6,740,344,392
2.72%
2,683
42,673
4,205,887,894
1.63%
1,587
42,337
4,306,840,068
1.47%
1,481
42,000
4,152,459,607
1.81%
1,785
41,948
3,900,769,022
1.86%
1,785
41,182
3,647,504,903
1.99%
1,776
39,453
3,375,850,131
2.06%
1,716
37,938
3,037,267,611
133
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
CURRENT YEAR
TABLE 14
ESTIMATED
ESTIMATED
DEBT
PERCENTAGE
SHARE OF
GOVERNMENT UNIT
OUTSTANDING
APPLICABLE
OVERLAPPING DEBT
Debt repaid with property taxes
Alamo CCD
$ 688,781,519
0.44%
$ 3,030,639
Bexar County
1,811,473,106
0.44%
7,970,482
Bexar County Hospital District
1,238,865,000
0.44%
5,451,006
Comal County
93,665,900
4.09%
3,830,935
Comal ISD
1,440,220,214
3.79%
54,584,346
East Central ISD
368,946,301
2.98%
10,994,600
Guadalupe County
5,405,000
15.81 %
854,531
Judson ISD
783,928,458
0.03%
235,179
Randolph Field ISD
2,102,000
89.24%
1,875,825
Schertz-Cibolo-Universal ISD
299,475,612
43.78%
131,110,422
Subtotal overlapping debt
219,937,965
City Governmental Activities Direct Debt
81,655,000
Total net overlapping debt
$ 301 592,965
The overlapping debt was received from the Municipal Advisory Council of Texas. Details regarding the City's outstanding
debt can be fund in the notes to the financial statements.
Overlapping debt is the proportionate share of the debts of local jurisdictions located wholly or in part within the limits of
the City of Schertz. This schedule is intended to demonstrate the total debt that the City of Schertz property owners will be
expected to repay. The amount of debt applicable to the City of Schertz is computed by (a) determining what portion of total
assessed value of the overlapping jurisdiction lies within the limits of the City and (b) applying this percentage to the total
governmental activities debt of the overlapping jurisdiction.
134
FINAL DRAFT
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Assessed value
Debt limit
Total net debt applicable to limit
Total debt margin
Total net debt as a percentage of debt margin
2015 2016 2017 2018
$ 3,037,267,611 $ 3,375,850,131 $ 3,647,504,903 $ 3,783,027,833
303,726,761 337,585,013 364,750,490 378,302,783
53,424,303 61,181,169 65,792,916 66,329,699
$ 250,302,458 $ 276,403,844 $ 298,957,574 $ 311,973,084
21.34%
22.13% 22.01% 21.26%
136
FINAL DRAFT
TABLE 15
LEGAL DEBT MARGIN CALCULATION FOR FISCAL YEAR 2024
Assessed value, 2024 taxroll $ 7,900,676,187
Debt limit (10% of assessed value) 790,067,619
Amount of applicable debt:
General bonded debt $ 81,655,000 -
Less debt service net position (1,231,229) 80,423,771
Debt margin $ 709,643,848
2019
2020
2021
2022
2023
2024
$ 3,900,769,022
$ 4,152,459,607
$ 4,070,815,340
$ 6,740,344,392
$ 7,617,926,151
$ 7,900,676,187
390,076,902
415,245,961
407,081,534
674,034,439
761,792,615
790,067,619
66,019,954
61,318,507
53,946,636
93,659,743
92,497,795
80,423,771
$ 324,056,948
$ 353,927,454
$ 353,134,898
$ 580,374,696
$ 669,294,820
$ 709,643,848
20.37%
17.33%
15.28%
16.14%
13.82%
11.33%
137
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
WATER REVENUE BONDS
UTILITY LESS: NET
FISCAL SERVICE OPERATING AVAILABLE DEBT SERVICE
YEAR
CHARGES
EXPENSES
REVENUE
PRINCIPAL
2025
$ 33,248,197
S 28,303,049
$ 4,945,148
$ 1,700,000 $
2024
32,811,920
31,257,030
1,554,890
1,630,000
2023
31,283,976
29,200,652
2,083,324
1,580,000
2022
30,876,559
24,362,098
6,514,461
1,180,000
2021
28,030,614
22,231,246
5,799,368
1,856,953
2020
29,735,911
24,032,772
5,703,139
1,961,953
2019
27,246,250
22,622,986
4,623,264
1,845,132
2018
27,099,237
20,802,263
6,296,974
1,671,134
2017
25,390,713
18,697,162
6,693,551
1,554,541
2016
22,003,794
17,603,487
4,400,307
1,441,741
TABLE 16
INTEREST COVERAGE
985,745
1.84
967,183
0.60
1,017,794
0.80
912,019
3.11
515,413
2.44
612,643
2.22
561,880
1.92
391,609
3.05
368,390
3.48
417,346
2.37
Details regarding the City's outstanding debt can be found in the notes to the basic financial statements. Operating
expenses do not include the depreciation, interest, oramortiration expenses.
138
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
TABLE 17
EDUCATION
PER CAPITA
LEVELS IN
FISCAL
PERSONAL
PERSONAL
MEDIAN
YEARS OF
SCHOOL
UNEMPLOYMENT
YEAR
POPULATION
INCOME
INCOME
AGE
SCHOOLING
ENROLLMENT
RATE
2025
43,811
$ 1,922,993,256
$ 43,896
38.9
16.0
14,946
4.1%
2024
43,239
1,790,872,902
41,418
42.0
16.0
15,758
3.2%
2023
43,010
1,734,335,240
40,324
39.0
15.9
15,573
3.6%
2022
42,673
1,656,664,147
38,822
37.9
15.9
15,877
3.3%
2021
42,337
1,611,714,563
38,069
37.6
16.2
15,887
3.9%
2020
42,000
1,651,272,000
39,316
37.4
16.2
15,675
5.1%
2019
41,948
1,473,255,708
35,121
38.0
16.2
15,925
2.7%
2018
41,182
1,396,481,620
33,910
37.3
15.9
15,817
3.2%
2017
39,453
1,266,046,770
32,090
37.2
15.9
15,497
3.8%
2016
37,938
1,175,319,240
30,980
36.9
15.8
15,460
3.4%
Poplulation, personal income, median age, and education level information provided by City Economic Development Corporation.
School enrollment provided by Schertz-Cibolo-Universal City Independent School District.
Unemployment data provided by Texas Workforce Commission.
139
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
TOP TEN PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2025
PERCENTAGE
OF TOTAL CITY
EMPLOYER EMPLOYEES EMPLOYMENT
Schertz-Cibolo-Universal City ISD
2,100
Amazon
800
Sysco Central Texas, Inc.
700
FedEx Ground - Doerr Lane, Schertz
700
Republic National Distributing Company
700
Brandt Companies
600
City of Schertz
600
Visionworks
480
Hollingsworth Logistics Group
403
H.E.B. Grocery Company
400
GE Oil and Gas
HVHC
TOTAL 7,483
Source: City Economic Development Corporation
9.08%
3.46%
3.03%
3.03%
3.03%
2.60%
2.60%
2.08%
1.74%
1.73%
TABLE 18
2016
PERCENTAGE
OF TOTAL CITY
EMPLOYEES
EMPLOYMENT
1,877
10.85%
1,256
7.26%
815
4.71%
500
2.89%
408
2.36%
396
2.29%
351
2.03%
32.38% 6
350
,925
2.02%
552
3.19%
420
2.43%
40.03%
140
FINAL DRAFT
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
FULL-TIME EQUIVALENT EMPLOYEES AS OF SEPTEMBER 30,
FUNCTION
2016
2017
2018
2019
2020
General Government
City Manager
5
5
5
5
5
Municipal Court
6
6
6
4
4
Customer Relations
5
5
5
3
3
Planning and Zoning
4
4
4
3
3
General Services
-
-
-
-
-
City Secretary
2
2
2
2
2
Public Affairs
4
4
5
5
5
Records Management
1
1
-
-
-
Schertz Magazine
2
2
-
-
-
Engineer
7
7
7
7
8
GIS
2
2
2
2
2
Information Technology
6
7
8
8
8
Human Resources
5
5
5
5
5
Finance
8
8
8
7
7
Purchasing
3
3
3
3
3
Fleet Service
6
6
6
7
8
Building Maintenance
-
-
-
-
-
Facility Services
16
16
17
10
10
Public Safety
Police
78
81
86
86
87
Fire
36
39
45
45
46
Inspections
8
8
11
12
12
Marshall Services
8
5
-
-
-
Health
Animal Control
8
8
7
7
8
Environmental Health
3
3
4
4
4
Parks and Culture
Parks and Culture
9
10
12
11
11
Pools
-
-
-
-
-
Event Facilities
1
1
1
5
5
Library
14
14
15
14
14
Public Environment
Streets
14
14
14
14
17
Public Works
Public Works
4
4
4
4
4
Business Office
10
10
10
9
9
Water and Sewer
16
16
19
19
19
Drainage
6
6
8
8
8
EMS
39
41
45
45
45
Economic Development
4
4
4
4
4
TOTAL
340
347
368
358
366
Source: City adopted budgets
142
FINAL DRAFT
TABLE 19
FULL-TIME EQUIVALENT EMPLOYEES AS OF SEPTEMBER 30,
2021
2022
2023
2024
2025
5
5
5
4
4
4
4
4
4
4
3
3
2.5
2.5
2
4
4
4
4
4
2
2
2
3
3
4
4
4
3
4
8
8
10
11
11
2
2
3
3
3
8
8
9
9
9
5
5
5
5
5
7
7
7
7
7
3
3
3
3
3
8
8
9
9
9
11
11
11
11
11
88
90
94
95
100
46
46
50
53
53
12
12
14
14
14
9
9
9
9
9
5
5
6
6
6
11
11
15
16
16
6
6
6.5
6.5
6
14
14
15
15
9
17
17
17
17
17
4
4
4
4
4
9
9
9
10
11
21
21
21
21
26
8
8
8
8
8
55
55
65
70
71
4
4
4
4
4
383 385 416 427 433
143
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
FISCAL YEAR
FUNCTION/PROGRAM
2016
2017
2018
2019
2020
General Government
Building Project Pemrits Issued
5,919
4,800
5,251
4,748
2,993
Food Establishment Permits
145
201
181
55
189
Food Establishment Inspection
153
133
211
96
209
Foster/Adoption Inspections
21
21
18
8
10
Schertz Magazine
Number of Magazines Printed
180,000
180,000
180,000
180,000
187,500
Police
CFS
39,064
34,428
45,190
41,327
57,149
Arrests
603
423
624
603
527
Traffic Violations
8,960
8,001
11,359
12,541
8,326
Accidents
2,119
2,057
2,244
2,304
1,752
Fire
Number of Rescue/Other Responses
2,327
2,758
3,055
3,804
3,953
Number of Fire Responses
67
86
161
100
108
Number of Inspections
440
519
562
528
500
Number of Training Classes
Conducted
460
340
600
804
763
Number of Pre -Plan Inspections
867
922
788
865
814
EMS
Requests for Transport
9,723
9,956
10,059
10,759
10,713
Actual Transports
6,123
6,201
6,165
6,738
6,549
EMT Students
89
90
90
90
84
Marshal's Office
Warrants Issues
2,587
2,816
1,598
2,036
1,738
Warrants Cleared
3,492
2,822
2,022
1,834
664
Parks
Facility Reservations
240
251
248
241
75
Community and Civic Centers
Civic Center Reservations
483
590
516
441
293
Community Center Reservations
370
455
381
326
193
North Coninitinity Center
Reservations
185
230
235
188
92
Animal Services
Number of Animals Handled
1,313
1,283
926
1,157
1,015
Number of Adoptions
410
348
319
366
450
Number of Return to Owners
205
228
218
233
335
Number of Transfers
316
326
297
227
188
Library
Annual Circulation
399,622
385,206
414,790
447,379
254,643
library Visits
255,109
235,428
258,695
237,821
102,297
Library Program Attendance
15,282
16,814
16,945
18,412
6,524
Registered Users
30,702
31,432
30,806
33,104
31,296
144
FINAL DRAFT
TABLE 20
FISCAL YEAR
2021
2022
2023
2024
2025
4,474
4,000
3,500
4,000
3,900
159
173
172
189
175
192
142
146
237
287
11
5
9
-
3
189,700
191,700
192,000
192,000
192,000
29,007
32,170
30,667
32,622
39,925
416
326
355
456
323
6,980
6,504
5,924
5,159
8,644
2,076
2,341
2,085
2,143
1,892
4,837
4,895
4,994
5,296
5,585
205
232
182
234
189
548
547
674
599
858
770
632
1,032
698
842
848
324
320
1,007
810
12,251
13,520
14,495
14,997
16,474
7,444
8,332
9,154
9,612
10,054
123
154
136
141
146
2,095
1,708
1,083
810
1,195
1,451
1,373
4,243
877
802
237
294
334
441
601
353
354
416
430
318
291
299
276
299
489
153
197
196
199
335
1,070
1,125
1,217
1,275
1,238
329
371
419
377
486
284
252
279
228
228
152
205
202
317
228
281,659
359,272
397,156
411,073
400,774
91,291
157,428
194,260
223,391
254,099
2,541
11,357
14,700
19,686
21,413
30,291
29,612
28,734
30,788
34,883
145
FINAL DRAFT
CITY OF SCIIERTZ, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
FUNCTION/PROGRAM
Water
New Connections
Water Main Breaks
Total Consumption (hundreds of gallons)
Daily Average Consumption
(thousand of gallons)
Peak Daily Consumption (thousands of gallons)
Total Customers
Average Use Per Connection
Sewer
Total Customers
Facilities Maintenance
Number of Buildings Maintained
Square Footage
Source: Various City Departments
FISCAL YEAR
2016 2017 2018 2019 2020
213
303
235
300
357
45
45
50
52
65
16,097,931
15,222,373
15,833,124
17,602,330
19,766,870
43,942
41,705
42,378
48,225
54,155
10,985
11,000
9,083
11,094
14,011
13,877
14,124
14,678
16,434
13,683
5,352
5,244
5,294
4,587
5,600
12,282
12,398
12,866
12,853
13,112
21
21
25
26
27
234,202
234,202
245,218
257,218
257,218
146
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
TABLE 20 (Continued)
FISCAL YEAR
2021 2022 2023 2024 2025
342
291
460
257
389
38
64
-
63
46
16,171,200
21,606,589
23,637,420
19,724,748
24,803,990
59,377
59,190
64,760
54,040
67,956
9,160
8,429
14,309
10,730
8,390
15,524
15,719
15,869
16,504
16,257
101,955
133,143
5,156
1,195
1,526
10,879
11,954
13,016
14,181
14,988
26
28
24
24
24
257,218
257,218
273,970
273,970
273,970
147
FINAL DRAFT
CITY OF SCHERTZ, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
FISCAL YEAR
FUNCTION
2016
2017
2018
2019
2020
Police
Stations
1
1
1
1
1
Police Vehicles
50
64
69
68
72
Fire
Stations
2
2
3
3
3
Training Facility
-
-
-
-
-
Fire Vehicles
16
16
18
19
20
EMS
Ambulances
9
8
8
9
9
Marshars Office
Vehicles
7
7
7
7
7
Streets
Streets, paved (miles)
153
159
153
165
165
Streets, unpaved (miles)
5
5
5
5
5
Sidewalks (miles)
-
-
-
-
-
Parks and Recreation
Parks - Developed
15
20
21
21
21
Parks - Undeveloped
10
4
4
4
4
Playground
19
19
19
20
21
Swimming Pools
2
4
4
4
4
Baby Pools
2
2
2
2
2
BasebaWSoftballDiamonds
15
15
15
15
15
Soccer Fields
12
12
12
12
12
Cornmunity Centers
4
4
4
4
4
Splash Pads
-
-
-
-
-
Animal Services
Control Vehicle
4
3
4
4
6
Library
Facility
l
1
1
1
1
Volumes in Collection
97,412
107,382
110,266
150,972
139,447
Water
Number of Reservoirs
-
-
-
-
-
Number of Pump Stations
5
5
5
5
6
Water Mains (miles)
213
221
225
228
229
Sewer
Sanitary Sewers (miles)
98
110
113
116
116
Storm Sewers (miles)
12
12
14
14
14
Facilities Services
Vehicles
6
6
11
11
10
Fleet
Generators
4
4
7
10
7
Vehilces and Equipment
N/A
N/A
384
352
341
Source: Various City Departments
Notes: No capital asset indicators are available for the general government or EMS function.
148
FINAL DRAFT
FISCAL YEAR
2021 2022 2023 2024 2025
1
1
1
1
1
66
76
90
97
92
3
3
3
3
3
20
24
24
25
25
10
11
12
13
13
7
3
N/A
N/A
N/A
168
172
180
182
190
5
5
5
5
5
21
21
21
21
21
5
5
5
5
5
21
36
36
36
36
4
3
3
3
3
2
1
l
1
1
15
15
15
15
15
12
12
12
12
12
4
4
4
4
4
-
2
2
2
6
8
8
8
6
l
l
1
1
1
149,965
155,715
160,533
170,265
229,943
7
6
6
6
6
231
236
246
251
259
120
124
133
142
146
15
16
17
18
19
8
10
9
10
10
8
11
11
13
21
376
373
420
428
440
TABLE 21
149
FINAL DRAFT
COMPLIANCE SECTION
FINAL DRAFT
FINAL DRAFT
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GO VERNMENTA UDITING STANDARDS
To the Honorable Mayor and
Members of City Council
City of Schertz, Texas
We have audited, in accordance with the auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States, the financial statements of the governmental activities, the business -type activities,
each major fund, and the aggregate remaining fund information of the City of Schertz, Texas, as of and for the year
ended September 30, 2025, and the related notes to the financial statements, which collectively comprise the City
of Schertz, Texas' basic financial statements, and have issued our report thereon dated March 17, 2026.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Schertz, Texas' internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the City of Schertz, Texas' internal control. Accordingly, we do not
express an opinion on the effectiveness of the City of Schertz, Texas' internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements
will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that
we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that
were not identified.
153
FINAL DRAFT
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Schertz, Texas' financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial
statements. However, providing an opinion on compliance with those provisions was not an objective of our audit,
and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance
or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any
other purpose.
San Antonio, Texas
March 17, 2026
154
FINAL DRAFT
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND
ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and
Members of City Council
City of Schertz, Texas
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Schertz, Texas' compliance with the types of compliance requirements identified as
subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City
of Schertz, Texas' major federal programs for the year ended September 30, 2025. The City of Schertz, Texas'
major federal programs are identified in the summary of auditor's results section of the accompanying schedule of
findings and questioned costs.
In our opinion, the City of Schertz, Texas complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major federal programs for
the year ended September 30, 2025.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States
of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States and the audit requirements of Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in
the Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City of Schertz, Texas and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal
program. Our audit does not provide a legal determination of the City of Schertz, Texas' compliance with the
compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of laws,
statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City of Schertz, Texas'
federal programs.
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Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City of
Schertz, Texas' compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance
when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Noncompliance with the compliance requirements referred to above is considered material if there
is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a
reasonable user of the report on compliance about the City of Schertz, Texas' compliance with the requirements of
each major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards,
and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and
perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,
evidence regarding the City of Schertz, Texas' compliance with the compliance requirements referred to
above and performing such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of the City of Schertz, Texas' internal control over compliance relevant to the
audit in order to design audit procedures that are appropriate in the circumstances and to test and report on
internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of
expressing an opinion on the effectiveness of the City of Schertz, Texas' internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over
compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.
A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal
control over compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in
internal control over compliance with a type of compliance requirement of a federal program that is less severe than
a material weakness in internal control over compliance, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor's
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in
internal control over compliance that might be material weaknesses or significant deficiencies in internal control
over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or
significant deficiencies in internal control over compliance may exist that were not identified.
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Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.
Accordingly, this report is not suitable for any other purpose.
San Antonio, Texas
March 17, 2026
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CITY OF SCHERTZ, TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the year ended September 30, 2025
FEDERAL GRANTOR'S
FEDERAL GRANTOR/PASS-THROUGH ASSISTANCE LISTING PASS -THROUGH FEDERAL
GRANTOR/PROGRAM TITLE NUMBER NUMBER EXPENDITURES
U.S. Deputment of Treasury
Passed through the Texas Division ofFlnergency Management:
COVID-19 State and Local Fiscal Recovery Fund (ARP Act)
Total Texas Division of Emergency Management
Total U.S. Department of Treasury
National Endowment for the Humanities fATF]il
Passed through the Texas State library and Archives Commission:
Grants to States - Interlibrary Loan Program (ILL)
Total Texas State Library and Archives Commission
Total National Endowment for the Humanities (NW
U.S. Department of Health and Human SerHces
Passed through the Texas Health and Human Services Commission:
Medicaid Cluster - Ambulance Services - Uncompensated Care Costs
Total Texas Health and Human Services Comtission
Total U.S. Department of Health and Human Services
U.S. Department of Homeland Security
Passed through the Texas Division ofEmergency Management:
Disaster Grants -Public Assistance
Total Texas Division of Emergency Management
Total U.S. Department of Homeland Security
TOTAL FEDERAL AWARDS
21.027 TX2511 $ 5,405,147
5,405,147
5,405,147
45.310 902524 5,190
5,190
5,190
93.778 N/A 90,141
90,141
90,141
97.036 FEMA-4871-DR 173,035
173,035
173,035
$ 5,673,513
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CITY OF SCHERTZ, TEXAS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the year ended September 30, 2025
(1 ) General
The accompanying schedule of expenditures of federal awards presents the activity of all applicable federal
awards for the City of Schertz, Texas (the City). The City's reporting entity is defined in note 1 to the City's basic
financial statements. Federal awards received directly from federal and state agencies as well as federal awards
passed through other government agencies are included in the respective schedule.
2) Basis of accounting
The accompanying schedule of expenditures of federal awards is presented using modified accrual basis of
accounting, which is described in note 1 to the City's basic financial statements.
3 i Relationshitn to federal financial reports
Grant expenditure reports of September 30, 2025, which have been submitted to grantor agencies will, in some
cases, differ slightly from amounts disclosed herein. The reports prepared for grantor agencies are typically
prepared at a later date and often reflect refined estimates of year end accruals. The reports will agree at
termination of the grant as the discrepancies noted are timing differences.
(4) Indirect costs
The City has not elected to use the de minimis indirect cost rate as allowed in the Uniform Guidance, Section
414.
5) Pass -through expenditures
None of the federal programs expended by the City were passed through to subrecipients.
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CITY OF SCHERTZ, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the year ended September 30, 2025
Summary of Auditor's Results
Financial Statements:
Type of auditor's report issued Unmodified
Internal Control Over Financial Reporting:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None Reported
Noncompliance material to financial statements noted? None
Federal Awards:
Internal control over major programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None Reported
Type of auditor's report issued on compliance
for major programs Unmodified
Any audit findings disclosed that are required to be reported
in accordance with 2 CFR Section 200.516(a)? None
Identification of Major Programs:
Federal Assistance Listing Number
#21.027
Dollar threshold used to distinguish between Type A
and Type B programs
Auditee qualified as low -risk auditee?
Findings Relating to the Financial Statements Which are
Renuired to be Reported in Accordance_ with Generally
Accepted Government Auditing Standards
None
Name of Federal Program or Cluster:
Coronavirus State and Local Fiscal Recovery Funds —
American Rescue Plan Act of 2021
Findings and Questioned Costs for Major Federal Award Programs
None
$1,000,000
Yes
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None
CITY OF SCHERTZ, TEXAS
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the year ended September 30, 2025
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