08-11-2026 Budget Retreat MeetingBUDGET RETREAT MINUTES
CITY COUNCIL MEETING
August 11, 2026
A Budget Retreat Meeting was held by the Schertz City Council of the City of Schertz, Texas, on August 11, 2026, at 5:15
p.m. in the Hal Baldwin Municipal Complex Council Chambers, 1400 Schertz Parkway, Building #4, Schertz, Texas. The
following members present to -wit:
Present: Mayor Ralph Rodriguez; Mayor Pro Tem Michelle Watson; Councilmember Mark Davis; Councilmember Paul
Macaluso; Councilmember Ben Guerrero; Councilmember Robert Westbrook; Councilmember Sarah Dietz;
Councilmember Robert Sheridan
Staff Steve Williams, City Manager; Brian James, Deputy City Manager; Sarah Gonzalez, Assistant City Manager;
present: Sheila Edmondson, City Secretary
Welcome (Mayor Ralph Rodriguez/City Manager Steve Williams)
Mayor Rodriguez called the Budget Retreat to order at 5:15 p.m. and extended a welcome to all in -person and online
attendees. Mayor Rodriguez introduced City Manager Steve Williams, who thanked everyone for their attendance at tonight's
Budget Retreat. Today's presentation will include a review of the FY2026-27 Draft Budget and Capital Improvement Program
(CIP).
Hearing of Residents
This time is set aside for any person who wishes to address the City Council. Each person should fill out the speaker's register
prior to the meeting. Presentations should be limited to no more than 3 minutes.
All remarks shall be addressed to the Council as a body, and not to any individual member thereof.
All handouts and/or USB devices must be submitted to the City Secretary no later than noon on the Monday preceding the
meeting. Handouts will be provided to each Councilmember prior to the start of the meeting by the City Secretary. All USB
devices will be vetted by City IT staff to ensure Cityproperty is protected from malware.
Discussion by the Council of any item not on the agenda shall be limited to statements of specific factual information given in
response to any inquiry, a recitation of existing policy in response to an inquiry, and/or a proposal to place the item on a future
agenda. The presiding officer, during the Hearing of Residents portion of the agenda, will call on those persons who have
signed up to speak in the order they have registered.
1. Billie Langhus-2489 Jane Addams Dr: Ms Langhus addressed the budget issues. A Green Valley Special Utility District
budget issue was passed, and it did not go through council for approval. She asked how money could be spent if it did not go
through the council. All city funds belong to the citizens and citizens need to know where it is going, why it is going there and
who is making this happen. Please let us know.
Budget Prioritization Process
1. Fiscal Year 2026-2027
Operating Budget and Capital Improvement Program Workshop (S.Williams/Executive Team/J.Walters)
The City Manager wanted to thank Finance Director, James Walters, the Finance Staff, Public Affairs, and all the
Department Heads for putting together the final draft FY 2026-27 Budget. The official budget book is typically not
done until about November. However, the entire book was available tonight. CM Williams reminded Council that they
would not be asked to make any decisions tonight. Council will have the opportunity to discuss the budget again on
August 18, 2026. If Council would like another opportunity for a budget workshop, another workshop will be scheduled
on August 25, 2026.
City Manager Steve Williams reviewed today's budget agenda:
• Overview & Update
• Operating Budget Discussion
• Capital Improvement Program (CIP)
Overview & Update
-Explanation of the materials being presented
• Budget process timeline
• National and local economies
• Development recap
• Budget Priorities
• Budget 101 — What makes up the City's budget?
• Budgeting philosophy
Budget Calendar
The City Manager reviewed the Budget Calendar:
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2/6/26
3/27/26
April -July
8/11/26
8/18/26
8/25/26
9/1/26
10/1/26
City Council
Pre -Budget
Budget & CIP
Budget & CIP
Budget & CIP
Budget & CIP
Budget &
Fiscal Year
Teambuilding/
Retreat
Development
Retreat
Discussion,
Discussion
CIP Adopted
Begins
Strategic
(Council & Staff)
(Staff)
(Council & Staff)
Schedule
(Council &
(Council)
Planning
Public
Staff)
Retreat
Hearings, Set
(If NEEDED)
(Council &
Preliminary
Staff)
Tax Rate
(Council &
Staff)
CM Williams spoke about the Macro and Micro Economic Outlook.
Budget Priorities
Aligned with the City's Strategic Plan Adopted in 2024
• Goal 1: Maintain Essential Services
• Goal 2: Invest in Employees
• Goal 3: Protect Infrastructure
• Goal 4: Preserve Financial Stability
• Goal 5: Use One -Time Revenue Responsibly
Budget 101:
The City Budget is made up of many things, primarily an Operating Budget and a Capital Budget. The Operating
Budget takes care of your day-to-day and the Capital Budget with capital investments.
Under the Operating Budget there are the General Fund, Enterprise Funds, Debt Service and Other Funds.
Recurring vs. One -Time Revenue
Recurring Revenue (property tax, sales tax) fees are spent on Recurring Expenses (operations, salaries).
One -Time Revenue (sales tax windfall, bond proceeds) is spent on One -Time Expenses (one-time projects, fluid
money)
Operating Budget - Expenses for FY26-27 $149,041,546.00 will pay for:
27% Increase Over Prior Year
• 3 1 % Personnel Services
• 16% Transfers (higher than usual)
• 14% City Supported Services
• 12% Debt Service
• 9% Operating Expenses
• 6% Capital Outlay
• 12% Miscellaneous
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_Operatin_- Budget Revenues for i - N'26-27)
39% Property Tax & Sales Tax
• 35% Fees — Water, Sewer, Garbage, etc.
• 26% Multiple Sources
(Transfers, Investments, Grants, Franchise Fees, etc.)
The General Fund is the primary governmental operating fund: Used to account for all financial resources that cannot
otherwise be accounted for in other funds that have specific purposes.
Pays for everyday city services: Police, Fire, Parks & Recreation, Library, Streets, Engineering, Planning &
Community Development, Administration, IT, Facilities Maintenance, Municipal Court, etc.
General Fund -Expenditures: FY 26-27 - $82,788,185 (proposed)
• 34% Public Safety (47%)
• 29% Transfers (0%)
• 15% Internal Services
• 12% General Government
• 5% Parks & Recreation
• 3% Public Works
• 2% Cultural
People -Driven Fund — Personnel Services are Typically — 70%
General Fund -Excess Fund Balance: One-time money to fund one-time investments. The city has received $32
million over the 26% fund balance.
Proposing to spend the excess fund balance on the following:
• Street Preservation and Maintenance: $10 mil -Fund $2 million per year over the next 5 years
• Vehicle & Equipment Replacement Fund (VERF): $11 mil to provide a reliable funding plan for replacing
vehicles/equipment in the General Fund -Accumulated depreciation $9.2 million plus funding for the current year
($1.8 million)
• Fund One -Time Capital Purchases and Improvement
• Support the Debt Service Fund-$2 Million to the Debt Service Fund (Interest & Sinking/I&S) -Will keep I&S rate
steady
• Increase General Fund-$5 mil as additional Fund Balance.
General Fund —Revenues FY26-27: $55,290,550
• 41 % Property Tax
• 30% Sales Tax
• 9% Permits, Fees, and Fines
• 7% Interfund Charges
• 5% Franchise Fees
• 4% Inter jurisdictional
• 4% Investments/Misc.
Property Values and Propertv Taxes
DVHS-Disabled Veterans and Senior Citizens -City of Schertz supports the DVHS Exemption for veterans. However.
the state legislature supports this unfunded mandate.
Iin 4 homes are 100% exempt from property tax. More than 1 in 2 homes in Schertz have some veteran or military
exemption
Current losses from the DVHS exemption equal $6.3M in revenue loss. • Or 11.3 cents on our tax rate. The State Aid
has only reimbursed $5.2 mil of the $33.5 mil Schertz has requested.
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Tax Rate Name
No New Revenue (Proposed)
Voter Approval
Tax Rate
per $100
$0.5296
til! I
Est. Tax Bill Increase
$1,732.81 --
$0.5593 51,830.20 $97.39
Increase
8,12%
Current IMMI $0.5118 $1,674.72 ($58.09) -4.84%
Bill increase: $97.39 is about $8.12 per month
• Tax bills are based on an average taxable value of homes for 2026 of $327,222
• Estimated Tax Bills and Bill Increases are annual amounts
• $0.01 is equal to $560,600 in revenue or $32.72 per year on the average home
Sales Taxis the 2nd largest revenue source for the General Fund. Increases are averaging approx 7% annual growth.
Franchise Fees are fees that people pay to use ROW or telecom or cable services. These fees have been fairly stable
through the years.
Permits Fees can change when large commercial permits start developing. Currently, there are approx. 400 permits,
which is good.
Fees & Fines go to offset specific services: community center, civic center. Not much fluctuation.
Enterprise Funds
Enterprise Funds are used to account for governmental activities that are like those found in private businesses.
• Major revenue source for these funds is the revenue generated from the customers who receive the services
provided
• Expenses for these services are paid for through revenue generated from services provided
• The City's Enterprise Funds include Water & Sewer; EMS; Drainage
Water & Sewer
The Water & Sewer Fund tracks revenue and expenses for the City's water, sewer, and solid waste functions and is
managed by the Public Works Department.
• Revenues - 95% comes from the sale of Water, Sewer Charges, and Solid Waste Fees, while 5% comes from
Investment Income and other fees such as Penalties, New Meter Sales and Water Leases
• Capital Recovery (Impact) Fees for Water and Sewer
• Water & Sewer Capital Improvement Programs (CIPs)
• SSLGC, CCMA
_Water & Sewer-Expenses-FY 26-27 - $35,332,054
• 3 1 % Operations
• 27% Debt Service
• 14% Supplies
• 12% Personnel
• 7% Professional & City
Services
• 6% Capital
• 3% Utilities & Maintenance
Water & Sewer-Revenues-FY26-27 - $34,025,478
48% Sale of Water
• 35% Sewer Charges
• 12% Garbage Collection
• 2% Other Fee & Charges
• 2% Miscellaneous
• 1 % Investment Income
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There is a proposed water and sewer rate increase of 8%, which would be $5.02 a month for water and an additional
$2.15 on the sewer rate increase. There is a 3.8% rate increase for the garbage that is built into the contract, which is
$0.73 increase per month.
EMS Fund-Schertz EMS provides EMS and ambulance transportation to the greater Randolph Region
• Covers 235 square miles
• Serves 160,000 population
• Provides services to Schertz, Cibolo, Live Oak, Marion, Santa Clara, New Berlin, Selma, Universal City,
western Guadalupe County, Comal County, ESD#6 and JBSA Randolph.
Revenues.- FY26-27-$18.274,236
66% Transportation Fees
33% Other Agencies
Will increase transport fees by $50.00 for each call
Expenses-FY26-27-$18,857,986
58% Personnel
• 29% Operations (Bad Debt)
• 4% Capital Expense
• 3% Supplies
• 3% Interfund Charges
• 2% Utilities & Maintenance
• 1% Professional & City Services
Drainage Fund -The Drainage Division maintains and manages drainage channels, storm water inlets, foodways, road
right-of-way, and alleys that affect drainage infrastructure
Revenues - Fees charged to users that own impervious surfaces and/or any man-made structure, such as buildings,
parking lots, or driveways
• All residential properties charged the same fee.
• Commercial property fees based on total impervious surface
Expenses - FY26-27 - $2,703,176
• 34% Personnel
• 28% Operations Support
• 16% Capital Expense
• 14% Utilities and Maintenance
• 4% Professional Services
• 3% Debt Services
• 1% Supplies
FY 2002-03 to FY 2007-08
FY 2008-09 to FY 2011-12
FY 2012-13 to Present
FY 2025-26
$2
$3
$ 5.20
Proposed Fee for FY 2026-27 $11.00
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Other Funds-Schertz Economic Development Corporation's (SEDC) mission is to strengthen the local economy
by attracting and retaining businesses, investing in infrastructure, and promoting and enhancing quality of life.
The primary source of revenue is '/2 Cent Sales Tax.
Special Revenue Funds - These funds are used to account for the proceeds of certain specific revenue sources that
are legally restricted to expenditures for specific purposes
• Tree Mitigation
• Roadway Impact Fee
• Hotel/Motel Tax (HOT)
• Etc.
Invest in Employees:
FY 2027 Proposal:
• Continue funding step/merit increases.
• Do not fund an COLA/ECI adjustment this year.
• Conduct a new class & compensation study to assess current market competitiveness, with implementation
considered in the FY 2028/29 budget.
Exception: Fund a market adjustment for Public Safety Dispatchers due to significant regional pay changes and the
mission -critical nature of the position.
New Positions Proposed (9 Total):
• 4 Public Safety Dispatchers
• 4 Police Officers
• 1 School Resource Officer (83% funded by the School District)
FY 2026-27 Budget Highlights — All Funds
Health Insurance - $513,559
• - 10% Increase
• - Look at plan design changes/potential self -funding next year
• Class/Comp Study - $70,000
-Divide up study cost amongst funds
• Merit/Step - $765,530
-Merit 04%
-Step 4%
-ECl/COLA not funded
I&S FUND (DEBT SERVICE) 5 Year Summary — I&S Fund (Debt Service)
At I&S Rate of $0.1681:
Includes the following upcoming debt issuances:
FY 2027-28 - $8,000,000
FY 2028-29 - $6,000,000
FY 2030-31 - $22,000,000
FY 2032-33 - $28,000,000
FY 2034-35 - $30,000,000
FY 2035-36 - $21,000,000
Total: $115,000,000
Mayor recessed the meeting at 6:59 pm for a 10-minute break.
Mayor reconvened the meeting at 7:11 pm.
Capital Improvement Program (CIP) (FY 2026-27 Capital Budget)
General Government CIP
• Streets- 12 projects- $29,574.611
• Parks- 3 projects-$6,892,469
• Facilites- 5 projects-$5,681,4129
Total of 20 projects at $42,148,499
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Water & Sewer CIP
• Water-15 projects-$47,133,966
• Sewer-8 projects 48.100,00
Total of 23 projects at $22,233,966
Drainage CIP
• Drainage-8 projects for $4,425,000
City Manager Steve Williams opened the floor to discussion. Councilmember Davis asked about Old Wiederstein and
the widening and repair maintenance of Maske Rd and where they are on the prioritization sheet.
If a project was scheduled for a different year, CM Williams stated that Council could decide to move the project and
shift to another project to keep the balance. Mayor Rodriguez would like to see a list of the streets and where they are
scheduled for work. CM Williams explained they could have streets queued up and have each year mapped out.
Streets Projects -City Engineer Kathy Woodlee
• Lookout Rd. from Schertz Parkway to Deer Lane includes signalization and a ROW from Caterpillar.
• Main St. Improvements -long term project, water and sewer replacements will be included in this project.
Currently working with ATT and Centerpoint.
• Lower Seguin Rd Reconstruction runs from FM 1518 West to the city limits. Design is almost done and working
on ROW acquisitions.
• FY 2026-2027- SPAM-slurry seal projects in Village, Rio Vista and Jonas Woods.
• Kramer Farms Subdivision -split into 2 projects. On side rehabilitation of streets -Red Bam Run, Wagon Wheel
and Tractor Pass then a portion of Planters Pass and Rooster Run.
• Reconstruction Lower Seguin Rd to Graytown-30 feet widening of road, curbs, gutters and sidewalk on one side.
• Northcliffe Country Club Estates- water and wastewater replacements and street rehabilitation.
• Savanna Dr. -mill and overlay, concrete and base repairs included. Looking to bundle the 2 spam projects and the
TSAC recommended crosswalks on Savannah and Homestead.
• Live Oak extension and Maske Rd-extention of Live Oak to Maske. Maske will be reconstructed as a collector
roadway to FM 1518.
• Wiederstein Rd reconstruction and extension, need design and ROW
• Robin Hood Way-Schertz Forest subdivision will have some resurfacing and rehabilitation.
Parks Recreation and Community Service -Parks Director Lauren Shrum
• Hilltop Park -in Northcliffe area-8 acres and works with HOA's to join some of their properties into a 42-acre
community park
• Community Circle Park Development -develop a skate park, then additional volleyball court complex
• West East Creek Trail -crossing Savannah Dr. about 1.6 mile railway along West Creek, 10 ft wide concrete
sidewalks
Internal Services -Director Dawniecia Hardin
• Fire Station # 4-Wiederstein Rd progressing well
• FM 78 Build -out for Police Dept -County Building on FM 78
• Paving all city -owned grassy areas currently being used for operational purposes
• Replacing 2 generators at Main Campus to support emergency operations
Water Projects -City Engineer Kathy Woodlee
• FM 1518 Project from I-10 to FM 78- Utility Relocation joint bid work with TxDOT's contractor
• Elevated Tank Replacement -replace piping and 3 tanks to be painted
• Ware Seguin and Lower Seguin -water lines will be split into 2 projects
• Schertz Parkway -I 6-inch transmission main line -need repair
• I-35 Next North Utility relocations -under construction
• Schwab to Eckert Rd- 12-inch water line extension -Ackerman Subdivision to Schwab Rd in Homesteaad
• FM 3009-18-inch transmission main line replacement from FM 2252 past Corridor Loop
• I-35 Ground storage tank and pumping station
• Moonlight Meadow Drive and Lost Meadow Drive waterline replacement-4 inch to 8-inch waterlines
• Robin Hood Way -replace 6600 linear feet from an 8-inch line to a 12-inch line
• Street reconstruction Northcliffe County Club Estates -replacing 6 and 8-inch water distribution mains
• I-35 Dedicated Water Transmission Main -East Live Oak Water Station an elevated tank to the E 35 water tank
• Bubbling Springs Water Line Replacement -replace 6-inch water main to a 12-inch main across Cibolo Creek at
the end of Bubbling Springs across to the CCMA Plant location.
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• Ware -Seguin pump station -first phase -will install some pressure -reducing valves
Wastewater Sewer Projects -City Engineer Kathy Woodlee
• Riata Lift Station Relocation -consultants engaged in getting reimbursement from TxDot
• Rhine Valley Subdivision -run a gravity from lift station to Saddlebrook Subdivision
• Cibolo West Wastewater Trunk Main -line into southern Schertz, have ready when the CCMA plant is expanded
• Wiederstein Road- 8-inch gravity line with the project to upsize the wastewater line in Wiederstein Rd
• Aranda-8-inch gravity line extends across Lower Seguin to provide service to residential area of southern Schertz
• Northcliffe Lift Station upgrade -main lift station in the city, at the old GBRA Treatment plant near Northcliffe
County Club Estates, needs to be upsized to TCEQ standards
• Town Creek -installation of wastewater gravity line from Abby Road to FM 2252, then up to I-35
Drainage Projects -City Engineer Kathy Woodlee
• FM 78 South Channel -near Sely's Restaurant -channel filled with silt and overgrown
• Wendy Swan Drainage Improvements -removal of retaining wall and above -ground channel at the back of Wendy
Swan Park
• FM 1518 CIty Park -underground drainage upgrade -paused this year
• Kramer Farms -drainage improvements -clean out, reshape
• Woodbridge Drainage Improvements -design and construction from Ashley Place to Woodland Oaks
• Morning Drive -dealing with culverts and channels in this location near Scenic Hills Subdivison
• Oak Forest Channel -near FM 3009 area needs work, culverts under the road will be extended for drainage
CM Williams explained to the Council that on the CIP sheets the project scheduling below had the years listed when
the project should start.
Between all 3 CIP lists, the work costs are about 93 million, $793,707,465 in projects next year. These projects are the
biggest spend of our budget and we focus on them internally.
When you combine all the information on the CIP lists over the next 10 years, it's $784,978,594.00. Priorities move up
and back, it's a living document. Please take a look at it and ask questions.
CM Williams thanked the staff for all the hard work they put into the Budget Workbook. The next Budget Workshop
meeting will be August 25, 2026, at 5:30 pm.
Thank you all for attending.
Adjournment
Mayor Rodriguez adjourned the meeting at 8:04 pm.
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Sheila Edmondso TRMC
City Secretary
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