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08-04-2026 Agenda PacketMEETING AGENDA City Council REGULAR SESSION CITY COUNCIL August 4, 2026 6:00 P.M. HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 CITY OF SCHERTZ CORE VALUES Do the right thing Do the best you can Treat others the way you want to be treated Work cooperatively as a team AGENDA TUESDAY, AUGUST 4, 2026 at 6:00 p.m. Call to Order Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas. (Councilmember Guerrero) Discussion and Action Items 1.Appointment of Mayor Pro Tem - Discussion, consideration, and/or action regarding the confirmation, appointment, or election of the Mayor Pro Tem. (Mayor/Council) Oath of Office: New Mayor Pro Tem Employee Introductions EMS: Linda Castleman Donlea-Administrative Assistant; Animal Control: Kariza Menchaca-Kennel Technician Police: David Salazar III-Police Officer; Mark Perez-Police Officer Police-Dispatch: Eugenio Gonzalez-Public Safety Communications Officer Public Works-Water: Zion Thomas-Water/Wastewater Operator Trainee; Frederick Jones-Water/Wastewater Operator Trainee; Lorenzo Blanco-Water/Wastewater Operator Trainee; Desmond Garcia Water/Wastewater Operator Trainee August 4, 2026 City Council Agenda Page 1 City Events and Announcements Announcements of upcoming City Events (DCM Brian James/ACM Sarah Gonzalez) Announcements and recognitions by the City Manager (CM Steve Williams) Announcements and recognitions by the Mayor (Mayor Ralph Rodriguez) 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. Any person making personal, impertinent, or slanderous remarks while addressing the Council may be requested to leave the meeting. 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 City property 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. Consent Agenda Items The Consent Agenda is considered self-explanatory and will be enacted by the Council with one motion. There will be no separate discussion of these items unless they are removed from the Consent Agenda upon the request of the Mayor or a Councilmember. 2.Minutes-Approval of the minutes from the July 21, 2026 Regular Council Meeting (City Secretary Sheila Edmondson) 3.Resolution 26-R-088 - Rejecting all Bids for the Library Foundation Repair Project (Assistant City Engineer John Nowak) Discussion and Action Items 4.Resolution 26-R-089 - Authorizing an Interlocal Agreement with the City of Garden Ridge Regarding Sewer Capacity and Wheeling (Deputy City Manager Brian James) August 4, 2026 City Council Agenda Page 2 5.Declaration of Emergency - July 15, 2026 (Fire Chief Greg Rodgers) 6.Ordinance 26-B-018 - Consideration and approval by the city council of the City of Schertz, Texas authorizing the issuance of “City of Schertz, Texas, Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2026”; providing for the payment of said certificates by the levy of an ad valorem tax upon all taxable property within the city and further securing said certificates by a lien on and pledge of the pledged revenues of the system; and other matters incident and related thereto. (Finance Director James Walters) Public Hearings 7.Ordinance 26-S-017 - Conduct a public hearing and consider a request to rezone approximately 0.26 acres of land from General Business District (GB) to Main Street Mixed-Use District (MSMU), generally located approximately 50-feet southwest of the intersection of Main Street and Lindbergh Ave, specifically known as Guadalupe County Property Identification Number 67454, City of Schertz, Texas (Senior Planner Daisy Marquez) Information available in City Council Packets - NO DISCUSSION TO OCCUR 8.National League of Cities Membership (City Secretary Sheila Edmondson) 9.August 2026 Projects in Progress (City Engineer Kathy Woodlee) Requests and Announcements Requests by Mayor and Councilmembers for updates or information from Staff Requests by Mayor and Councilmembers that items or presentations be placed on a future City Council agenda City and Community Events attended and to be attended (Council) Adjournment CERTIFICATION I, SHEILA EDMONDSON, CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS, DO HEREBY CERTIFY THAT THE ABOVE AGENDA WAS PREPARED AND POSTED ON THE OFFICIAL BULLETIN BOARDS ON THIS THE 29TH DAY OF JULY 2026 AT 5:00 P.M., WHICH IS A PLACE READILY ACCESSIBLE TO THE PUBLIC AT ALL TIMES AND THAT SAID NOTICE WAS POSTED IN ACCORDANCE WITH CHAPTER 551, TEXAS GOVERNMENT CODE. SHEILA EDMONDSON I CERTIFY THAT THE ATTACHED NOTICE AND AGENDA OF ITEMS TO BE CONSIDERED BY THE CITY COUNCIL WAS REMOVED BY ME FROM THE OFFICIAL BULLETIN BOARD ON ________DAY OF August 4, 2026 City Council Agenda Page 3 CITY COUNCIL WAS REMOVED BY ME FROM THE OFFICIAL BULLETIN BOARD ON ________DAY OF ___________________, 2026. TITLE: _______________________________ This facility is accessible in accordance with the Americans with Disabilities Act. Handicapped parking spaces are available. If you require special assistance or have a request for sign interpretative services or other services, please call 210-619-1030. The City Council for the City of Schertz reserves the right to adjourn into closed session at any time during the course of this meeting to discuss any of the matters listed above, as authorized by the Texas Open Meetings Act. Closed Sessions Authorized: This agenda has been reviewed and approved by the City’s legal counsel and the presence of any subject in any Closed Session portion of the agenda constitutes a written interpretation of Texas Government Code Chapter 551 by legal counsel for the governmental body and constitutes an opinion by the attorney that the items discussed therein may be legally discussed in the closed portion of the meeting considering available opinions of a court of record and opinions of the Texas Attorney General known to the attorney. This provision has been added to this agenda with the intent to meet all elements necessary to satisfy Texas Government Code Chapter 551.144(c) and the meeting is conducted by all participants in reliance on this opinion. COUNCIL COMMITTEE AND LIAISON ASSIGNMENTS Mayor Rodriguez Member Audit Committee Investment Advisory Committee Main Street Committee TIRZ II Board Liaison Board of Adjustments Senior Center Advisory Board-Alternate Councilmember Davis– Place 1 Member Interview Committee Main Street Committee - Chair TIRZ II Board Liaison Parks & Recreation Advisory Board Schertz Housing Authority Board Transportation Safety Advisory Board Councilmember Watson – Place 2 Member Audit Committee Liaison Library Advisory Board Senior Center Advisory Board Cibolo Valley Local Government Corporation (CVLGC)-Ex-Officio Councilmember Macaluso – Place 3 Member Interview Committee Hal Baldwin Scholarship Committee TIRZ II Board Councilmember Guerrero – Place 4 Member Hal Baldwin Scholarship Committee Investment Advisory Committee Liaison Schertz Historical Preservation Committee Councilmember Westbrook – Place 5 Member Schertz-Seguin Local Government Corporation (SSLGC) Liaison Planning and Zoning Commission Schertz Historical Preservation Committee August 4, 2026 City Council Agenda Page 4 Councilmember Dietz – Place 6 Member Animal Services Advisory Committee Audit Committee Interview Committee-Chair Investment Advisory Committee Main Street Committee Liaison Building and Standards Commission Economic Development Corporation - Alternate Senior Center Advisory Board Councilmember Sheridan – Place 7 Member Main Street Committee Liaison Economic Development Corporation August 4, 2026 City Council Agenda Page 5 Agenda No. 1. CITY COUNCIL MEMORANDUM City Council Meeting:August 4, 2026 Department:City Secretary Subject:Appointment of Mayor Pro Tem - Discussion, consideration, and/or action regarding the confirmation, appointment, or election of the Mayor Pro Tem. (Mayor/Council) Oath of Office: New Mayor Pro Tem BACKGROUND On August 28, 2018, City Council amended their Rules of Conduct and Procedure (Ordinance 18-M-30) regarding the appointment of the Mayor Pro Tem. Below is the amended article: Article 5 Section 5.1 Appointment Procedure for the Mayor Pro Tem. a. The Council will discuss, and with a majority vote, appoint the Councilmember to serve as the Mayor Pro Tem for the City. b. The appointed Mayor Pro Tem must be a Councilmember and must meet the qualifications of Section 4.02 of the City Charter. In addition, to be appointed to the position of Mayor Pro Tem, a Councilmember must be an elected member of Council and a member in good standing. c. Term dates for the Mayor Pro Tem position will begin in February and August of each year. Terms will sequentially rotate according to each Councilmember's place. d. If the Councilmember that is up for appointment as Mayor Pro Tem is vacant or is held by a Councilmember who is not qualified or chooses not to serve as Mayor Pro Tem, the Mayor Pro Tem appointment will go to the next qualified Councilmember. e. The position will have a term of office of six (6) months. f. The appointed Mayor Pro Tem may be removed by Council by a two-thirds (2/3) majority vote of the members of Council at any time during his or her term. g. Council reserves the right to alter this procedure at any time by resolution or rule. Qualifications. The Mayor and each Councilmember must have attained the age of eighteen or older on the first day of the term of office applied for, be a registered voter of the City of Schertz, and have been a resident of the City for at least twelve consecutive months immediately preceding the deadline for filing for an application for a place on the ballot. Section 4.05 Mayor and Mayor Pro Tem. The Mayor shall be the official head of the City government. He or she shall be the chair and shall preside at all meetings of the City Council. The Mayor may vote only in the event of a tie. He or she shall, unless another signatory is otherwise designated by the City Council, sign all official documents such as ordinances, resolutions, conveyances, grant agreements, official plats, contracts, and bonds. He or she shall appoint special committees as instructed by the City Council, with committee membership to be composed of nominees by the City Council. He or she shall perform such other duties consistent with this Charter or as may be imposed upon him or her by the City Council. The Mayor shall not have veto powers. The Mayor Pro Tem shall be a Councilmember appointed by the City Council for a term and pursuant to procedures established by the City Council from time to time. The Mayor Pro Tem shall act as Mayor during the absence or disability of the Mayor and in this capacity shall have the rights conferred upon the Mayor. While acting as Mayor, the Mayor Pro Tem may vote on any matter before the City Council. RECOMMENDATION: Council will discuss and consider the appointment of the next Mayor Pro Tem regarding the above qualifications. Next in line to serve is Councilmember Michelle Watson If appointed, Councilmember Michelle Watson will be sworn in as the new Mayor Pro Tem on August 4, 2026. Agenda No. 2. CITY COUNCIL MEMORANDUM City Council Meeting:August 4, 2026 Department:City Secretary Subject:Minutes-Approval of the minutes from the July 21, 2026 Regular Council Meeting (City Secretary Sheila Edmondson) Attachments Draft Minutes 7-21-2026 City Council Meeting Agenda No. 3. CITY COUNCIL MEMORANDUM City Council Meeting:August 4, 2026 Department:Engineering Subject:Resolution 26-R-088 - Rejecting all Bids for the Library Foundation Repair Project (Assistant City Engineer John Nowak) BACKGROUND The Library has a pier and beam foundation. The gap between the piers and the foundation beams was sealed with composite plastic panels and the area outside the perimeter backfilled with native soils and base material. The plastic panels bowed inward over time, collapsing into the crawl space underneath the floor of the Library. This has caused "sinkholes" adjacent to the exterior walls of the Library, most notably in the rear paver courtyard. To correct the situation, the composite, plastic panels should be replaced with more durable panels, such as reinforced concrete panels. Staff began developing a project to replace the plastic panels with concrete ones. Unintech, one of our on-call Engineering firms, was retained to develop the project for us. A detailed bid package was created and the project bid (# 2026-005). Bids were opened on July 1, 2026 and two bids were received. A third "proposal" was received after the bid opening time. Not only was this "proposal" received after the bid opening, it was not submitted on the required bid documents, did not have a bid bond, and contained work elements very different than the bid package contained. For these reasons, the "proposal" is deemed "non-responsive" and can not be considered for the bidding process. The two bids received were close to each other, with lowest bid received at $729,380.00 and the other bid at $729,473.80. The bids amount significantly exceeded the estimated project cost ($241,367.72) and the available budget for the project. In reviewing the bid tabs, staff noted that several line items in the bid had unit prices significantly higher than the estimated unit prices. It was also noted that there were some irregularities with one of the bids. The extensions of the unit prices did not match the bid form, resulting in a lower summed amount. However, this lower summed amount ($699,607.82) still far exceeds the estimate and budget.The bid unit prices were often several factors higher than the estimated unit prices. For example, the asphalt cost per ton was bid at $750 vs. a typical city project unit price of $120 per ton and the paver removal cost was estimated at $65 per ton (based on an estimated cost from a contractor that installs pavers) vs. the bid price of $450 per ton. Neither Staff nor our consultant are able to justify why the unit pricing in the bids is so high. Because the bids received were so high, Staff and our Consultant recommend rejecting all bids and re-bidding the project. Before the project is re-bid, our consultant will reach out to the bidders to try to glean why the unit pricing was so high and get feedback on the plans and bid package. This information will be used to revise the bid package to hopefully obtain better bids when the project is re-bid. GOAL To reject all the bids received for the Library Foundation project and allow the project to be re-bid. COMMUNITY BENEFIT The lowest bid received exceeds the available project budget by a very significant margin. Proceeding with the lowest bid would require adding significant funding to this project, delaying proceeding with other, important projects. By rejecting all the bids, the project bid package can be refined and the project re-bid to receive more favorable bids for the project. SUMMARY OF RECOMMENDED ACTION Reject all bids received for the project and allow the project to be re-bid. RECOMMENDATION Approve Resolution 26-R-088 Attachments Resolution 26-R-088 RESOLUTION NO. 26-R-088 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS REJECTING ALL BIDS FOR THE LIBRARY FOUNDATION REPAIR PROJECT # 2026-005 WHEREAS, the City of Schertz decided to undertake a project to repair the foundation of the City of Schertz Library (Library); and WHEREAS, project plans and a bid package were prepared for the Library Foundation Repair Project # 2026-005; and WHEREAS, the Library Foundation Repair Projects was publicly advertised for bids in accordance with public entity procurement regulations; and WHEREAS, two bids were received and opened on July 1, 2026 for the Library Foundation Repair Project; and WHEREAS, City Staff and the City’s consultant (Unintech Consulting Engineers) reviewed the bids and determined that the unit prices in the bids do not seem reasonable and the bid totals far exceed the Engineer’s Estimate and project budget; and WHEREAS, the City Council has determined that it is in the best interest of the City to reject all bids for the Library Foundation Repair project and allow the project to be re-bid. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: The City Council hereby rejects all bids received for the Library Foundation Repair Project, # 2026-005. Section 1. 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 50234811.1 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 ADOPTED, this day of , 2026. CITY OF SCHERTZ, TEXAS ________________________________ Ralph Rodriguez, Mayor ATTEST: _______________________________ Sheila Edmondson, City Secretary EXHIBIT A LIBRARY FOUNDATION REPAIR PROEJCT BID ANALYSIS July 16, 2026 John Nowak P.E. Assistant City Engineer 11 Commercial Place Schertz, TX 78154 Office (210) 619-1825 RE: 2026 LIBRARY FOUNDATION REPAIR PROJECT . RFP #2026 – 005 Bid Results and Recommendation Dear Mr. Nowak We have evaluated the bids received on July 14th for the 2026 LIBRARY FOUNDATION REPAIR PROJECT which consists of the replacement of the failing soil retainers around the foundation of the Schertz Public Library. Two (2) were received as shown below. Dalrymple Gravel and Contracting Company Inc with a bid in the amount of $729,380.00, and Du-West Company Services with a bid in the amount of $729,473.80. Engineer’s Estimate was in the amount of $241,367.72. During our evaluation of the bids, UNINTECH identified some irregularities. The extension of the unit prices for the Du-West Company Services bid did not match the bid form provided, and the summed amount was $699,607.82 which is different than their bid form, in addition their total cost of #356,382.00 for trench excavation safety protection appears to be significantly higher than the engineer’s estimate and the competing bid. The Dalrymple Gravel and Contracting Company Inc unit prices for the traffic control appears to be significantly higher than the engineers estimate and greater than the competing bid by a 195% and the unit cost of the precast soil retainers exceeded the engineers estimate and the competing bid by 100%. This work is not along a street or right of way and should not have any traffic control except barricades in the parking lot. The preliminary bids received by UNINTECH during design for the precast The low bid was submitted by Dalrymple Gravel and Contracting Company Inc in the amount of $729,380.00. Our evaluation indicates that these bids are not in line with the scope of work. Therefore, we recommend the contract not be awarded at this time. Sincerely, Mark B Hill, PE Unintech Consulting Engineers, Inc. Bid Tabulation 2026 LIBRARY FOUNDATION REPAIR PROJECT Bid Date 7/1/2026 Project #RFP #2026 – 005 Engineers Estiamte Dalrymple Gravel and Contracting Company Inc Du-West Company Services Lowest Unit Price Difference of Lowest to Engineer ITEM SPEC DESCRIPTION UNIT COST TOTAL COST UNIT COST TOTAL COST UNIT COST TOTAL COST UNIT COST TOTAL COST UNIT COST TOTAL COST % Different Amount 1 1502 MOBILIZATION LS 1 19,418.16$ 19,418.16$ 75,000.00$ 75,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ -3%581.84$ 2 TRAFFIC CONTROL AND REGULATION LS 1 145,000.00$ 145,000.00$ 1,500.00$ 1,500.00$ 1,500.00$ 1,500.00$ -200%1,500.00$ 3 1410 TPDES -STORM WATER POLLUTION PREVENTION PLAN LS 1 5,825.45$ 5,825.45$ 50,000.00$ 50,000.00$ 10.00$ 10.00$ 10.00$ 10.00$ 199%(5,815.45)$ 4 1740 SITE RESTORATION LF 936 20.00$ 18,720.00$ 5.00$ 4,680.00$ 19.01$ 17,791.96$ 5.00$ 4,680.00$ 120%(14,040.00)$ 5 2221.1 REMOVE ASPHALT SURFACE SY 73 20.00$ 1,460.00$ 75.00$ 5,475.00$ 150.00$ 10,950.00$ 75.00$ 5,475.00$ -116%4,015.00$ 6 2221.4 REMOVE SIDEWALK AND DRIVEWAY SF 306 30.00$ 9,180.00$ 10.00$ 3,060.00$ 16.00$ 4,896.00$ 10.00$ 3,060.00$ 100%(6,120.00)$ 7 2221.8 REMOVAL OF CURB AND GUTTER LF 67 20.00$ 1,340.00$ 45.00$ 3,015.00$ 20.00$ 1,340.00$ 20.00$ 1,340.00$ 0%-$ 8 2260 TRENCH EXCAVATION SAFETY PROTECTION LF 936 5.00$ 4,680.00$ 85.00$ 79,560.00$ 380.75$ 356,382.00$ 85.00$ 79,560.00$ -178%74,880.00$ 9 2741.1 HOT MIX ASPHALT PAVEMENT, TYPE D (3") (PG 64-22)TON 4.62 120.00$ 554.40$ 750.00$ 3,465.00$ 500.00$ 2,310.00$ 500.00$ 2,310.00$ -123%1,755.60$ 10 2741.2 HOT MIX ASPHALT PAVEMENT, TYPE B (5") (PG 64-22)TON 7.7 120.00$ 924.00$ 750.00$ 5,775.00$ 800.00$ 6,160.00$ 750.00$ 5,775.00$ -145%4,851.00$ 11 2743 TACK COAT GAL 2.8 5.00$ 14.00$ 125.00$ 350.00$ 200.00$ 560.00$ 125.00$ 350.00$ -185%336.00$ 12 2771 CONCRETE CURB LF 67 30.00$ 2,010.00$ 100.00$ 6,700.00$ 90.00$ 6,030.00$ 90.00$ 6,030.00$ -100%4,020.00$ 13 2775 CONCRETE SIDEWALK SY 34 92.00$ 3,128.00$ 275.00$ 9,350.00$ 300.00$ 10,200.00$ 275.00$ 9,350.00$ -100%6,222.00$ 14 2775 STAMPED/STAINED CONCRETE SIDEWALK SY 177 227.00$ 40,179.00$ 275.00$ 48,675.00$ 400.00$ 70,800.00$ 275.00$ 48,675.00$ -19%8,496.00$ 15 2811 Irrigation, Tree Bubbler EA 8 200.00$ 1,600.00$ 75.00$ 600.00$ 300.00$ 2,400.00$ 75.00$ 600.00$ 91%(1,000.00)$ 16 2811 Irrigation, Shrub Bubbler - 6"EA 147 98.00$ 14,406.00$ 75.00$ 11,025.00$ 200.00$ 29,400.00$ 75.00$ 11,025.00$ 27%(3,381.00)$ 17 2915 TREES, 2" CALIPER EA 4 460.00$ 1,840.00$ 1,000.00$ 4,000.00$ 2,000.00$ 8,000.00$ 1,000.00$ 4,000.00$ -74%2,160.00$ 18 2915 PLANT MATERIALS 5 GAL EA 151 41.69$ 6,295.19$ 50.00$ 7,550.00$ 200.00$ 30,200.00$ 50.00$ 7,550.00$ -18%1,254.81$ 19 2922 BERMUDA SODDING SY 355 12.00$ 4,260.00$ 15.00$ 5,325.00$ 22.54$ 8,001.70$ 15.00$ 5,325.00$ -22%1,065.00$ 20 2922 TOPSOIL CY 40 44.00$ 1,760.00$ 200.00$ 8,000.00$ 220.00$ 8,800.00$ 200.00$ 8,000.00$ -128%6,240.00$ 21 SUP-1 PRECAST FOUNDATION SOIL RETAINER LF 936 85.00$ 79,560.00$ 250.00$ 234,000.00$ 82.56$ 77,276.16$ 82.56$ 77,276.16$ 3%(2,283.84)$ 22 SUP-2 CONCRETE PAVER REMOVAL TON 31 65.00$ 2,015.00$ 425.00$ 13,175.00$ 600.00$ 18,600.00$ 425.00$ 13,175.00$ -147%11,160.00$ 23 SUP-4 HAND RAIL LF 16 16.00$ 256.00$ 350.00$ 5,600.00$ 500.00$ 8,000.00$ 350.00$ 5,600.00$ -183%5,344.00$ ESTIMATED CONSTRUCTION TOTAL 241,367.72$ 729,380.00$ 699,607.82$ 320,666.16$ 101,240.96$ UNINTECH CONSULTING ENGINEERS, INC. Agenda No. 4. CITY COUNCIL MEMORANDUM City Council Meeting:August 4, 2026 Department:Executive Team Subject:Resolution 26-R-089 - Authorizing an Interlocal Agreement with the City of Garden Ridge Regarding Sewer Capacity and Wheeling (Deputy City Manager Brian James) BACKGROUND The City of Garden Ridge is requesting the City of Schertz convey their sewer flows through the City of Schertz system to CCMA's system. CCMA, the sewer treatment for this area, does not have sewer lines to the City of Garden Ridge. Rather than the City of Garden Ridge or CCMA acquiring easements and constructing a separate sewer line, it is more cost effective and less impactful for Schertz property owners from whose land the easement might be needed, for the City of Schertz and the City of Garden Ridge to cooperate on proving service. Capacity will be available in the line and Garden Ridge will be compensating the City of Schertz as outlined in the Fiscal Impact section. The amount of capacity the City of Garden Ridge has capacity in the line is up to 750 LUEs. GOAL Partner with other communities to provide win-win solutions. COMMUNITY BENEFIT Protects the City's financial stability, integrity and credibility. Develops and maintains water, wastewater and drainage infrastructure. SUMMARY OF RECOMMENDED ACTION Approval of Resolution 26-R-089 authorizing an interlocal agreement with the City of Garden Ridge for sewer capacity and wheeling charges. FISCAL IMPACT In exchange for Schertz conveying sewer flow from the City of Garden Ridge to CCMA's line, the City of Garden Ridge has agreed to pay a fee equal to Thirty-Four cents ($0.34) per the estimated average daily gallons of flow for the prior calendar year. This charge is to offset Schertz' cost to operate and maintain the line. Additionally, the City of Garden Ridge will make payments in an amount equal to the Schertz Sewer Impact fee that would be charged if the development were subject to the City of Schertz Sewer Impact Fees, Article V Water and Wastewater Capital Recovery Fees in effect as of the effective date of this Agreement or as may be increased in the future as development ties onto the line. This is to cover the cost associated with the capacity in the Schertz' system that the City of Garden Ridge will be using. RECOMMENDATION Approval of Resolution 26-R-089. Attachments Resolutionn 26-R-089 w Attachments RESOLUTION 26-R-089 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING AN INTERLOCAL AGREEMENT WITH THE CITY OF GARDEN RIDGE REGARDING SEWER CAPACITY AND WHEELING AND RELATED MATTERS IN CONNECTION THEREWITH. WHEREAS, the City of Garden Ridge is seeking to provide sanitary sewer treatment service to a portion of their city; and WHEREAS, the service area of Cibolo Creek Municipal Authority ("CCMA"), a conservation and reclamation district that provides sanitary sewer treatment services, includes the portion of Garden Ridge for which the city is seeking to provide sanitary sewer treatment service; and WHEREAS, CCMA does not have sanitary sewer lines that run to the boundary of Garden Ridge; and WHEREAS, the City of Schertz does have sanitary sewer lines, near Garden Ridge that do connect to CCMA sanitary sewer lines; and WHEREAS, for purposes of facilitating delivery of treated wastewater from Garden Ridge to CCMA's sanitary sewer lines, Garden Ridge has requested that Schertz wheel the sanitary sewer flows from Garden Ridge to CCMA's sanitary sewer lines; and WHEREAS, Schertz and Garden Ridge each and jointly recogmze the benefit of wheeling services being provided by Schertz. NOW THEREFORE, BE IT RESOLVED, THAT THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes an Interlocal Agreement with the City of Garden Ridge regarding Sewer Capacity and Wheeling generally per the attached 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. Agenda No. 5. CITY COUNCIL MEMORANDUM City Council Meeting:August 4, 2026 Department:City Secretary Subject:Declaration of Emergency - July 15, 2026 (Fire Chief Greg Rodgers) BACKGROUND In alignment with the Texas Disaster Act of 1975, discuss and take action to ratify the Mayor's Local Disaster Declaration in preparation for major flooding event in the City of Schertz, Texas that also impacted all or parts of Regions 5, 6, 7, and 8 in the State of Texas. Attachments Declaration of Disaster-Flooding Agenda No. 6. CITY COUNCIL MEMORANDUM City Council Meeting:August 4, 2026 Department:Finance Subject:Ordinance 26-B-018 - Consideration and approval by the city council of the City of Schertz, Texas authorizing the issuance of “City of Schertz, Texas, Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2026”; providing for the payment of said certificates by the levy of an ad valorem tax upon all taxable property within the city and further securing said certificates by a lien on and pledge of the pledged revenues of the system; and other matters incident and related thereto. (Finance Director James Walters) BACKGROUND The City of Schertz has created and adopted a Capital Improvements Plan that outlines when major capital projects will occur and how they will be funded. This Plan assumes no increase in the tax rate and all debt raised to fund the projects can be funded at the existing rate. Potential projects funded through debt for 2026 include: Lower Seguin Road Improvements Street Preservation & Maintenance Northcliffe Country Club Estates Road Rehabilitiation Savannah Drive Mill and Overlay Rehabilitiation Generators for Community Center/Building1 and the Public Safety Complex Wendy Swan Drainage Improvements The Ordinance authorizes the sale of Obligations for the projects previously proposed and properly noticed subsequent the Notice of Intention Resolution adopted by the Council on June 2, 2026. The Certificates will fund street improvements, utility improvements, and facility improvements in an amount of $9,850,000. As of today, no petition has been filed to push this sale of debt to the November election. On August 4, 2026, the city received the quote for the sale of the bonds for the council's review. Council may agree to the terms of the sale based on the interest rates offered and adopt Ordinance 26-B-018 or may reject all proposals and cancel the sale of the bonds. GOAL To approve a bond ordinance and improve roadways, utilities, and facilities in the City of Schertz. COMMUNITY BENEFIT This sale of bonds is aimed to fund improvements to roadways and drainage throughout the City, This sale of bonds is aimed to fund improvements to roadways and drainage throughout the City, offering better and more reliable services to residents and businesses in Schertz. SUMMARY OF RECOMMENDED ACTION Staff recommends approval of the bond ordinance. FISCAL IMPACT When the Certificates of Obligation (CO’s) are approved, it is estimated that there will be no further impact on the city's tax rate. The debt payments on $8,750,000 fit within the taxes raised at the existing rate. The Drainage Fund can also pay for its $1,100,000 portion of the debt payments at the existing drainage fee amount. A presentation on the annual debt service amounts for the General Fund and Drainage Fund will be presented based on the results of the bond sale for Council's consideration. RECOMMENDATION Staff recommends approving the Ordinance 26-B-018 authorizing the sale of the Certificates. Motion: I MOVE THAT THE CITY COUNCIL ADOPT AN ORDINANCE AUTHORIZING THE “CITY OF SCHERTZ, TEXAS, COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2026” Attachments Ordinance 26-B-018 Issuing Certificates of Obligatin Bonds Series 2026 DRAFT ORDINANCE 26-B-018 An Ordinance authorizing the issuance of “City Of Schertz, Texas Combination Tax And Limited Pledge Revenue Certificates Of Obligation, Series 2026”; providing for the payment of said certificates by the levy of an ad valorem tax upon all taxable property within the city and further securing said certificates by a lien on and pledge of the pledged revenues of the system; providing the terms and conditions of said certificates and resolving other matters incident and relating to the issuance, payment, security, sale, and delivery of said certificates, including the approval and distribution of an Official Statement pertaining thereto; authorizing the execution of a Paying Agent/Registrar Agreement and sale documentation; complying with the requirements of the Letter of Representations previously executed with the Depository Trust Company; authorizing the execution of any necessary engagement agreement with the city’s financial advisors; and providing an effective date WHEREAS, the City Council of the City of Schertz, Texas (the City) has caused notice to be given of its intention to issue certificates of obligation in the maximum principal amount of $9,850,000 for the purpose of paying contractual obligations of the City to be incurred for making permanent public improvements and for other public purposes, to-wit: (1) (a) constructing street improvements (including utilities repair, replacement, and relocation), curbs, gutters, and sidewalk improvements, including drainage and traffic safety signalization and signage incidental thereto; (b) for drainage improvements, including designing, engineering, and construction costs related thereto; (c) renovating, equipping, and improving public safety facilities, including replacing generators at the City’s public safety building; (d) renovating, equipping, and improving administrative office buildings housing the governmental functions of the City, including replacing generators at the City’s civic center and City hall building; (2) the purchase of materials, supplies, equipment, machinery, landscaping, land, and rights-of-way for authorized needs and purposes relating to the aforementioned capital improvements; and (3) the payment of professional services related to the design, construction, project management, and financing of the aforementioned projects. This notice has been duly published in a newspaper hereby found and determined to be of general circulation in the City, once a week for two (2) consecutive weeks, the date of the first publication of such notice being not less than forty-five (45) days prior to the tentative date stated therein for the passage of the ordinance authorizing the issuance of such certificates of obligation; and WHEREAS, in accordance with the provisions of Section 271.049, as amended, Texas Local Government Code, the City confirms that notice of the City’s intention to issue certificates of obligation was approved by resolution at a public meeting and stated (1) the then-current principal of all outstanding debt of the City; (2) the then-current combined principal and interest required to pay all outstanding debt obligations of the City on time and in full, based on the City’s expectations relative to the interest due on any variable rate debt obligations, as applicable (3) the maximum principal amount of the certificates of obligation to be authorized; (4) the estimated -2- combined principal and interest required to pay the certificates of obligation in full; (5) the estimated interest rate for the certificates of obligation or that the maximum interest rate for the certificates of obligation may not exceed the maximum legal interest rate; and (6) the maximum maturity date of the certificates of obligation; and WHEREAS, no petition protesting the issuance of the certificates of obligation described in this notice, signed by at least 5% of the qualified electors of the City, has been presented to or filed with the City Secretary prior to the date tentatively set in such notice for the passage of this ordinance; and WHEREAS, the City Council hereby finds and determines that the issuance of the certificates of obligation, under the terms herein specified, is in the best interests of the City and its residents; and WHEREAS, the City Council hereby finds and determines that certificates of obligation in the principal amount of $_,___,___ described in such notice should be issued and sold at this time; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: SECTION 1. Authorization - Designation - Principal Amount - Purpose. The certificates of obligation of the City shall be and are hereby authorized to be issued in the aggregate principal amount of _____ AND NO/100 DOLLARS ($_,___,___), to be designated and bear the title of “CITY OF SCHERTZ, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2026” (the Certificates), for the purpose of paying contractual obligations of the City to be incurred for making permanent public improvements and for other public purposes, to-wit: (1) (a) constructing street improvements (including utilities repair, replacement, and relocation), curbs, gutters, and sidewalk improvements, including drainage and traffic safety signalization and signage incidental thereto; (b) for drainage improvements, including designing, engineering, and construction costs related thereto; (c) renovating, equipping, and improving public safety facilities, including replacing generators at the City’s public safety building; (d) renovating, equipping, and improving administrative office buildings housing the governmental functions of the City, including replacing generators at the City’s civic center and City hall building; (2) the purchase of materials, supplies, equipment, machinery, landscaping, land, and rights-of-way for authorized needs and purposes relating to the aforementioned capital improvements; and (3) the payment of professional services related to the design, construction, project management, and financing of the aforementioned projects, pursuant to the authority conferred by and in conformity with the laws of the State of Texas, particularly the Certificate of Obligation Act of 1971, as amended, Texas Local Government Code Section 271.041 through Section 271.064, Chapter 1502, as amended, Texas Government Code, and the City’s Home Rule Charter. SECTION 2. Fully Registered Obligations - Authorized Denominations - Stated Maturities - Interest Rates – Certificate Date. The Certificates are issuable in fully registered form only; shall be dated August 1, 2026 (the Certificate Date) and shall be issued in denominations of $5,000 or any integral multiple (within a Stated Maturity) thereof, and the Certificates shall -3- become due and payable on February 1 in each of the years and in principal amounts (the Stated Maturities) and bear interest on the unpaid principal amounts from the Certificate Date, or from the most recent Interest Payment Date (hereinafter defined) to which interest has been paid or duly provided for, to the earlier of redemption or Stated Maturity, at the per annum rates, while Outstanding, in accordance with the following schedule: Years of Stated Maturity Principal Amounts ($) Interest Rates (%) The Certificates shall bear interest on the unpaid principal amounts from the Certificate Date, or from the most recent Interest Payment Date (hereinafter defined) to which interest has been paid or duly provided for, to Stated Maturity or prior redemption, while Outstanding, at the rates per annum shown in the above schedule (calculated on the basis of a 360-day year of twelve 30-day months). Interest on the Certificates shall be payable on February 1 and August 1 in each year (each, an Interest Payment Date), commencing February 1, 2027, while the Certificates are Outstanding. SECTION 3. Payment of Certificates - Paying Agent/Registrar. The principal of, premium, if any, and interest on the Certificates, due and payable by reason of Stated Maturity, redemption, or otherwise, shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts, and such payment of principal of, premium if any, and interest on the Certificates shall be without exchange or collection charges to the Holder (hereinafter defined) of the Certificates. -4- The selection and appointment of BOKF, NA, Dallas, Texas (the Paying Agent/Registrar) to serve as the initial Paying Agent/Registrar, for the Certificates is hereby approved and confirmed, and the City agrees and covenants to cause to be kept and maintained at the corporate trust office of the Paying Agent/Registrar books and records (the Security Register) for the registration, payment and transfer of the Certificates, all as provided herein, in accordance with the terms and provisions of a Paying Agent/Registrar Agreement, attached, in substantially final form, as Exhibit A hereto, and such reasonable rules and regulations as the Paying Agent/Registrar and City may prescribe. The City covenants to maintain and provide a Paying Agent/Registrar at all times while the Certificates are Outstanding, and any successor Paying Agent/Registrar shall be (i) a national or state banking institution or (ii) an association or a corporation organized and doing business under the laws of the United States of America or of any state, authorized under such laws to exercise trust powers. Such Paying Agent/Registrar shall be subject to supervision or examination by federal or state authority and authorized by law to serve as a Paying Agent/Registrar. The City reserves the right to appoint a successor Paying Agent/Registrar upon providing the previous Paying Agent/Registrar with a certified copy of a resolution or ordinance terminating such agency. Additionally, the City agrees to promptly cause a written notice of this substitution to be sent to each Holder of the Certificates by United States mail, first-class postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. Principal of, premium, if any, and interest on the Certificates, due and payable by reason of Stated Maturity, redemption, or otherwise, shall be payable only to the registered owner of the Certificates appearing on the Security Register (the Holder or Holders) maintained on behalf of the City by the Paying Agent/Registrar as hereinafter provided (i) on the Record Date (hereinafter defined) for purposes of payment of interest thereon, (ii) on the date of surrender of the Certificates for purposes of receiving payment of principal thereof upon redemption of the Certificates or at the Certificates’ Stated Maturity, and (iii) on any other date for any other purpose. The City and the Paying Agent/Registrar, and any agent of either, shall treat the Holder as the owner of a Certificate for purposes of receiving payment and all other purposes whatsoever, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. Principal of and premium, if any, on the Certificates shall be payable only upon presentation and surrender of the Certificates to the Paying Agent/Registrar at its corporate trust office. Interest on the Certificates shall be paid to the Holder whose name appears in the Security Register at the close of business on the fifteenth day of the month next preceding an Interest Payment Date for the Certificates (the Record Date) and shall be paid (i) by check sent on or prior to the appropriate date of payment by United States mail, first-class postage prepaid, by the Paying Agent/Registrar, to the address of the Holder appearing in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested in writing by the Holder at the Holder’s risk and expense. If the date for the payment of the principal of, premium, if any, or interest on the Certificates shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the corporate trust office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day -5- which is not such a day. The payment on such date shall have the same force and effect as if made on the original date any such payment on the Certificates was due. In the event of a non-payment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a Special Record Date) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (the Special Payment Date - which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first-class postage prepaid, to the address of each Holder of a Certificate appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. SECTION 4. Redemption. A.Mandatory Redemption. The Certificates stated to mature on February 1, 20__, February 1, 20__, February 1, 20__ and February 1, 20__ are referred to herein as the “Term Certificates”. The Term Certificates are subject to mandatory sinking fund redemption prior to their stated maturities from money required to be deposited in the Certificate Fund for such purpose and shall be redeemed in part, by lot or other customary method, at the principal amount thereof plus accrued interest to the date of redemption in the following principal amounts on February 1 in each of the years as set forth below: Term Certificates Stated to Mature on February 1, 20__ Term Certificates Stated to Mature on February 1, 20__ Year Principal Amount ($) Year Principal Amount ($) *Payable at Stated Maturity. Term Certificates Stated to Mature on February 1, 20__ Term Certificates Stated to Mature on February 1, 20__ Year Principal Amount ($) Year Principal Amount ($) *Payable at Stated Maturity. -6- The principal amount of a Term Certificate required to be redeemed pursuant to the operation of such mandatory redemption provisions shall be reduced, at the option of the City, by the principal amount of any Term Certificates of such Stated Maturity which, at least fifty (50) days prior to the mandatory redemption date (1) shall have been defeased or acquired by the City and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and cancelled by the Paying Agent/Registrar at the request of the City, or (3) shall have been redeemed pursuant to the optional redemption provisions set forth below and not theretofore credited against a mandatory redemption requirement. B.Optional Redemption. The Certificates having Stated Maturities on and after February 1, 20__ shall be subject to redemption prior to Stated Maturity, at the option of the City, on February 1, 20__, or on any date thereafter, as a whole or in part, in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and by lot by the Paying Agent/Registrar), at the redemption price of par plus accrued interest to the date of redemption. C.Exercise of Redemption Option. At least forty-five (45) days prior to a date set for the redemption of Certificates (unless a shorter notification period shall be satisfactory to the Paying Agent/Registrar), the City shall notify the Paying Agent/Registrar of its decision to exercise the right to redeem Certificates, the principal amount of each Stated Maturity to be redeemed, and the date set for the redemption thereof. The decision of the City to exercise the right to redeem Certificates shall be entered in the minutes of the governing body of the City. D.Selection of Certificates for Redemption. If less than all Outstanding Certificates of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar shall select at random and by lot the Certificates to be redeemed, provided that if less than the entire principal amount of a Certificate is to be redeemed, the Paying Agent/Registrar shall treat such Certificate then subject to redemption as representing the number of Certificates Outstanding which is obtained by dividing the principal amount of such Certificate by $5,000. E.Notice of Redemption. Not less than thirty (30) days prior to a redemption date for the Certificates, the Paying Agent/Registrar shall cause a notice of redemption to be sent by United States mail, first-class postage prepaid, in the name of the City and at the City’s expense, by the Paying Agent/Registrar to each Holder of a Certificate to be redeemed, in whole or in part, at the address of the Holder appearing on the Security Register at the close of business on the business day next preceding the date of mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Holder. This notice may also be published once in a financial publication, journal, or reporter of general circulation among securities dealers in the City of New York, New York (including, but not limited to, The Bond Buyer and The Wall Street Journal), or in the State of Texas (including, but not limited to, The Texas Bond Reporter). All notices of redemption shall (i) specify the date of redemption for the Certificates, (ii) identify the Certificates to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the Certificates, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified, and the interest thereon, or on the -7- portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the redemption date, and (v) specify that payment of the redemption price for the Certificates, or the principal amount thereof to be redeemed, shall be made at the corporate trust office of the Paying Agent/Registrar only upon presentation and surrender thereof by the Holder. If a Certificate is subject by its terms to redemption and has been called for redemption and notice of redemption thereof has been duly given or waived as herein provided, such Certificate (or the principal amount thereof to be redeemed) so called for redemption shall become due and payable, and if money sufficient for the payment of such Certificates (or of the principal amount thereof to be redeemed) at the then applicable redemption price is held for the purpose of such payment by the Paying Agent/Registrar, then on the redemption date designated in such notice, interest on the Certificates (or the principal amount thereof to be redeemed) called for redemption shall cease to accrue and such Certificates shall not be deemed to be Outstanding in accordance with the provisions of this Ordinance. F.Transfer/Exchange of Certificates. Neither the City nor the Paying Agent/Registrar shall be required (1) to transfer or exchange any Certificate during a period beginning forty-five (45) days prior to the date fixed for redemption of the Certificates or (2) to transfer or exchange any Certificate selected for redemption, provided, however, such limitation of transfer shall not be applicable to an exchange by the Holder of the unredeemed balance of a Certificate which is subject to redemption in part. SECTION 5. Execution - Registration. The Certificates shall be executed on behalf of the City by its Mayor or Mayor Pro Tem under the seal of the City reproduced or impressed thereon and attested by its City Secretary. The signature of either of said officers on the Certificates may be manual or facsimile. Certificates bearing the manual or facsimile signatures of individuals who were, at the time of the Certificate Date, the proper officers of the City shall bind the City, notwithstanding that such individuals or either of them shall cease to hold such offices prior to the delivery of the Certificates to the Purchasers (hereinafter defined), all as authorized and provided in Chapter 1201, as amended, Texas Government Code. No Certificate shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears on such Certificate either a certificate of registration substantially in the form provided in Section 8C, executed by the Comptroller of Public Accounts of the State of Texas or his duly authorized agent by manual signature, or a certificate of registration substantially in the form provided in Section 8D, executed by the Paying Agent/Registrar by manual signature, and either such certificate upon any Certificate shall be conclusive evidence, and the only evidence, that such Certificate has been duly certified or registered and delivered. SECTION 6. Registration - Transfer - Exchange of Certificates - Predecessor Certificates. The Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address of every owner of the Certificates, or if appropriate, the nominee thereof. Any Certificate may, in accordance with its terms and the terms hereof, be transferred or exchanged for Certificates of other authorized denominations upon the Security Register by the Holder, in person or by his duly authorized agent, upon surrender of such Certificate to the Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or request for exchange duly -8- executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon surrender for transfer of any Certificate at the corporate trust office of the Paying Agent/Registrar, the City shall execute and the Paying Agent/Registrar shall register and deliver, in the name of the designated transferee or transferees, one or more new Certificates of authorized denomination and having the same Stated Maturity and of a like interest rate and aggregate principal amount as the Certificate or Certificates surrendered for transfer. At the option of the Holder, Certificates may be exchanged for other Certificates of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Certificates surrendered for exchange upon surrender of the Certificates to be exchanged at the corporate trust office of the Paying Agent/Registrar. Whenever any Certificates are so surrendered for exchange, the City shall execute, and the Paying Agent/Registrar shall register and deliver, the Certificates to the Holder requesting the exchange. All Certificates issued upon any transfer or exchange of Certificates shall be delivered at the corporate trust office of the Paying Agent/Registrar, or be sent by registered mail to the Holder at his request, risk, and expense, and upon the delivery thereof, the same shall be the valid and binding obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Certificates surrendered upon such transfer or exchange. All transfers or exchanges of Certificates pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any tax or other governmental charges required to be paid with respect to such transfer or exchange. Certificates cancelled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be Predecessor Certificates, evidencing all or a portion, as the case may be, of the same debt evidenced by the new Certificate or Certificates registered and delivered in the exchange or transfer therefor. Additionally, the term Predecessor Certificates shall include any Certificate registered and delivered pursuant to Section 25 in lieu of a mutilated, lost, destroyed, or stolen Certificate which shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Certificate. SECTION 7. Initial Certificate. The Certificates herein authorized shall be issued initially either (i) as a single fully registered Certificate in the total principal amount of $_,___,___ with principal installments to become due and payable as provided in Section 2 and numbered T- 1, or (ii) as one (1) fully registered Certificate for each year of Stated Maturity in the applicable principal amount and denomination and to be numbered consecutively from T-1 and upward (the Initial Certificate) and, in either case, the Initial Certificate shall be registered in the name of the Purchasers or the designee thereof. The Initial Certificate shall be the Certificate submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the Purchasers. Any time after the delivery of the Initial Certificate to the Purchasers, the Paying Agent/Registrar, pursuant to written instructions from the Purchasers or their designee, shall cancel the Initial -9- Certificate delivered hereunder and exchange therefor definitive Certificates of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates on the unpaid principal amounts from the Certificate Date, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, to Stated Maturity, and shall be lettered “R” and numbered consecutively from one (1) upward for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the Purchasers, or the designee thereof, and such other information and documentation as the Paying Agent/Registrar may reasonably require. SECTION 8. Forms. A.Forms Generally. The Certificates, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar, and the form of Assignment to be printed on each of the Certificates shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including insurance legends and any reproduction of an opinion of Bond Counsel (hereinafter referenced)) thereon as may, consistent herewith, be established by the City or determined by the officers executing the Certificates as evidenced by their execution thereof. Any portion of the text of any Certificate may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Certificate. The definitive Certificates shall be printed, lithographed, or engraved, produced by any combination of these methods, or produced in any other similar manner, all as determined by the officers executing the Certificates as evidenced by their execution thereof, but the Initial Certificate submitted to the Attorney General of the State of Texas may be typewritten or photocopied or otherwise reproduced. [The remainder of this page intentionally left blank.] B.Form of Definitive Certificate. REGISTERED REGISTERED PRINCIPAL AMOUNT NO. _________ $_____________ United States of America State of Texas Counties of Guadalupe, Comal, and Bexar CITY OF SCHERTZ, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2026 Certificate Date: Interest Rate: Stated Maturity: CUSIP No. August 1, 2026 REGISTERED OWNER: _________________________________________________________ PRINCIPAL AMOUNT: _________________________________________________________ The City of Schertz, Texas (the City), a body corporate and municipal corporation in the Counties of Guadalupe, Comal, and Bexar, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner specified above, or the registered assigns thereof, on the Stated Maturity date specified above, the Principal Amount specified above (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid Principal Amount hereof from the Certificate Date specified above, or from the most recent Interest Payment Date (hereinafter defined) to which interest has been paid or duly provided for until such Principal Amount has become due and payment thereof has been made or duly provided for, to the earlier of redemption or Stated Maturity, while Outstanding, at the per annum rate of interest specified above computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on February 1 and August 1 of each year (each, an Interest Payment Date), commencing February 1, 2027. Principal and premium, if any, of this Certificate shall be payable to the Registered Owner hereof (the Holder), upon presentation and surrender, at the corporate trust office of the Paying Agent/Registrar executing the registration certificate appearing hereon or a successor thereof. Interest shall be payable to the Holder of this Certificate (or one or more Predecessor Certificates, as defined in the Ordinance hereinafter referenced) whose name appears on the Security Register maintained by the Paying Agent/Registrar at the close of business on the Record Date, which is the fifteenth day of the month next preceding each Interest Payment Date. All payments of principal of and interest on this Certificate shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Interest shall be paid by the Paying Agent/Registrar by check sent on or prior to the appropriate date of payment by United States mail, first-class postage prepaid, to the Holder hereof at the address appearing in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by the Holder hereof at the Holder’s risk and expense. -11- This Certificate is one of the series specified in its title issued in the aggregate principal amount of $_,___,___ (the Certificates) pursuant to an Ordinance adopted by the governing body of the City (the Ordinance), for the purpose of paying contractual obligations of the City to be incurred for making permanent public improvements and for other public purposes, to-wit: (1) (a) constructing street improvements (including utilities repair, replacement, and relocation), curbs, gutters, and sidewalk improvements, including drainage and traffic safety signalization and signage incidental thereto; (b) for drainage improvements, including designing, engineering, and construction costs related thereto; (c) renovating, equipping, and improving public safety facilities, including replacing generators at the City’s public safety building; (d) renovating, equipping, and improving administrative office buildings housing the governmental functions of the City, including replacing generators at the City’s civic center and City hall building; (2) the purchase of materials, supplies, equipment, machinery, landscaping, land, and rights-of-way for authorized needs and purposes relating to the aforementioned capital improvements; and (3) the payment of professional services related to the design, construction, project management, and financing of the aforementioned projects, under and in strict conformity with the laws of the State of Texas, particularly Chapter 1502, as amended, Texas Government Code, the Certificate of Obligation Act of 1971, as amended, Texas Local Government Code, Section 271.041 through 271.064, and the City’s Home Rule Charter. The Certificates stated to mature on February 1, 20__, February 1, 20__, February 1, 20__ and February 1, 20__ are referred to herein as the “Term Certificates”. The Term Certificates are subject to mandatory sinking fund redemption prior to their stated maturities from money required to be deposited in the Certificate Fund for such purpose and shall be redeemed in part, by lot or other customary method, at the principal amount thereof plus accrued interest to the date of redemption in the following principal amounts on February 1 in each of the years as set forth below: Term Certificates Stated to Mature on February 1, 20__ Term Certificates Stated to Mature on February 1, 20__ Year Principal Amount ($) Year Principal Amount ($) *Payable at Stated Maturity. Term Certificates Stated to Mature on February 1, 20__ Term Certificates Stated to Mature on February 1, 20__ Year Principal Amount ($) Year Principal Amount ($) -12- *Payable at Stated Maturity. The principal amount of a Term Certificate required to be redeemed pursuant to the operation of such mandatory redemption provisions shall be reduced, at the option of the City, by the principal amount of any Term Certificates of such Stated Maturity which, at least fifty (50) days prior to the mandatory redemption date (1) shall have been defeased or acquired by the City and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and cancelled by the Paying Agent/Registrar at the request of the City, or (3) shall have been redeemed pursuant to the optional redemption provisions set forth below and not theretofore credited against a mandatory redemption requirement. As provided in the Ordinance, the Certificates having Stated Maturities on and after February 1, 20__ shall be subject to redemption prior to Stated Maturity, at the option of the City, on February 1, 20__, or on any date thereafter, as a whole or in part, in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and by lot by the Paying Agent/Registrar), at the redemption price of par plus accrued interest to the date of redemption; provided, however, that at least thirty (30) days prior written notice shall be sent to the Holders of the Certificates to be redeemed by United States mail, first-class postage prepaid, and subject to the terms and provisions relating thereto contained in the Ordinance. If this Certificate is subject to redemption prior to Stated Maturity and is in a denomination in excess of $5,000, portions of the principal sum hereof in installments of $5,000 or any integral multiple thereof may be redeemed, and, if less than all of the principal sum hereof is to be redeemed, there shall be issued, without charge therefor, to the Holder hereof, upon the surrender of this Certificate to the Paying Agent/Registrar at its corporate trust office, a new Certificate or Certificates of like Stated Maturity and interest rate in any authorized denominations provided in the Ordinance for the then unredeemed balance of the principal sum hereof. If this Certificate (or any portion of the principal sum hereof) shall have been duly called for redemption and notice of such redemption has been duly given, then upon such redemption date this Certificate (or the portion of the principal sum hereof to be redeemed) shall become due and payable, and, if the money for the payment of the redemption price, and the interest accrued on the principal amount to be redeemed to the date of redemption is held for the purpose of such payment by the Paying Agent/Registrar, interest shall cease to accrue and be payable hereon from and after the redemption date on the principal amount hereof to be redeemed. If this Certificate is called for redemption, in whole or in part, the City or the Paying Agent/Registrar shall not be required to issue, transfer, or exchange this Certificate within forty-five (45) days of the date fixed for redemption; provided, however, such limitation of transfer shall not be applicable to an exchange by the Holder of the unredeemed balance hereof in the event of its redemption in part. The Certificates of this series are payable from the proceeds of an ad valorem tax levied upon all taxable property within the City, within the limitations prescribed by law, and are further payable from and secured by a lien on and pledge of the Pledged Revenues (identified and defined in the Ordinance), being a limited amount of the Net Revenues derived from the operation of the City’s combined utility system (the System), such lien on and pledge of the limited amount of Net Revenues being subordinate and inferior to the lien on and pledge of such Net Revenues securing payment of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien Obligations -13- hereafter issued by the City. The City has previously authorized the issuance of the currently outstanding Limited Pledge Obligations (identified and defined in the Ordinance) that are payable, in part, from and secured by a lien on and pledge of a limited amount of the Net Revenues of the System in the manner and as described in the ordinances authorizing the issuance of the currently outstanding Limited Pledge Obligations. In the Ordinance, the City reserves and retains the right to issue Prior Lien Obligations, Junior Lien Obligations, Subordinate Lien Obligations, and Additional Limited Pledge Obligations (all as identified and defined in the Ordinance), while the Certificates are Outstanding, without limitation as to principal amount but subject to any terms, conditions or restrictions as may be applicable thereto under law or otherwise. Reference is hereby made to the Ordinance, a copy of which is on file in the corporate trust office of the Paying Agent/Registrar, and to all of the provisions of which the Holder by his acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the tax levied and the revenues pledged for the payment of the Certificates; the terms and conditions under which the City may issue Prior Lien Obligations, Junior Lien Obligations, Subordinate Lien Obligations, and Additional Limited Pledge Obligations; the terms and conditions relating to the transfer or exchange of the Certificates; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the Holder; the rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and provisions upon which this Certificate may be redeemed or discharged at or prior to the Stated Maturity thereof, and deemed to be no longer Outstanding thereunder; and for the other terms and provisions specified in the Ordinance. Capitalized terms used herein without definition have the same meanings assigned in the Ordinance. This Certificate, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register upon presentation and surrender at the corporate trust office of the Paying Agent/Registrar, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by the Holder hereof, or his duly authorized agent, and thereupon one or more new fully registered Certificates of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued to the designated transferee or transferees. The City and the Paying Agent/Registrar, and any agent of either, shall treat the Holder hereof whose name appears on the Security Register (i) on the Record Date as the owner hereof for purposes of receiving payment of interest hereon, (ii) on the date of surrender of this Certificate as the owner hereof for purposes of receiving payment of principal hereof at its Stated Maturity or its redemption, in whole or in part, and (iii) on any other date as the owner hereof for all other purposes, and neither the City nor the Paying Agent/Registrar, or any such agent of either, shall be affected by notice to the contrary. In the event of a non-payment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a Special Record Date) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (the Special Payment Date - which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first-class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. -14- It is hereby certified, covenanted, and represented that all acts, conditions, and things required to be performed, exist, and be done precedent to the issuance of this Certificate in order to render the same a legal, valid, and binding obligation of the City have been performed, exist, and have been done, in regular and due time, form, and manner, as required by the laws of the State of Texas and the Ordinance, and that issuance of the Certificates does not exceed any constitutional or statutory limitation; and that due provision has been made for the payment of the principal of, premium if any, and interest on the Certificates by the levy of a tax and collection of Pledged Revenues as aforestated. In case any provision in this Certificate or any application thereof shall be deemed invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions and applications shall not in any way be affected or impaired thereby. The terms and provisions of this Certificate and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the City has caused this Certificate to be duly executed under its official seal. CITY OF SCHERTZ, TEXAS By _________________________________ Ralph Rodriguez, Mayor ATTEST: ____________________________________ Sheila Edmondson, City Secretary -15- C.*Form of Registration Certificate of Comptroller of Public Accounts to Appear on Initial Certificate Only. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER OF PUBLIC ACCOUNTS THE STATE OF TEXAS § § § § REGISTER NO. I HEREBY CERTIFY that this Certificate has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this ____________________ ____________________________________ Acting Comptroller of Public Accounts of the State of Texas (SEAL) *NOTE TO PRINTER: Do not print on Definitive Certificates. D.*Form of Certificate of Paying Agent/Registrar to Appear on Definitive Certificates Only. REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR This Certificate has been duly issued under the provisions of the within-mentioned Ordinance; the Certificate or Certificates of the above-entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar. Registered this date: ___________________________________ BOKF, NA, DALLAS, TEXAS, as Paying Agent/Registrar By: _______________________________ Authorized Signature *NOTE TO PRINTER: Print on Definitive Certificates. -16- E.Form of Assignment. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee): _________________________________ ______________________________________________________________________________ (Social Security or other identifying number): ________________________________________ the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints ____________________ attorney to transfer the within Certificate on the books kept for registration thereof, with full power of substitution in the premises. DATED: ____________________________ ________________________________________________ NOTICE: The signature on this assignment must correspond with the name of the registered owner as it appears on the face of the within Certificate in every particular. Signature guaranteed: ____________________________________ F.Form of Initial Certificate. The Initial Certificate shall be in the form set forth in paragraph B of this Section, except that the form of a single fully registered Initial Certificate shall be modified as follows: (i) immediately under the name of the Certificate the headings “Interest Rate and “Stated Maturity shall both be completed “as shown below”; (ii) the first two paragraphs shall read as follows: The City of Schertz, Texas (the City), a body corporate and municipal corporation in the Counties of Guadalupe, Comal, and Bexar, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, the Principal Amount specified above stated to mature on the first day of February in each of the years and in principal amounts and bearing interest at per annum rates in accordance with the following schedule: Years of Stated Maturity Principal Amounts ($) Interest Rates (%) (Information to be inserted from schedule in Section 2 hereof) (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid Principal Amounts hereof from the Certificate Date specified above, or from the most -17- recent Interest Payment Date (hereinafter defined) to which interest has been paid or duly provided for until the Principal Amount has become due and payment thereof has been made or duly provided for, to the earlier of redemption or Stated Maturity, at the per annum rates of interest specified above, computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on February 1 and August 1 of each year (each, an Interest Payment Date), commencing February 1, 2027. Principal of this Certificate shall be payable to the Registered Owner hereof (the Holder), upon its presentation and surrender, to Stated Maturity or prior redemption, while Outstanding, at the corporate trust office of BOKF, NA, Dallas, Texas (the Paying Agent/Registrar). Interest shall be payable to the Holder of this Certificate whose name appears on the Security Register maintained by the Paying Agent/Registrar at the close of business on the Record Date, which is the fifteenth day of the month next preceding each Interest Payment Date. All payments of principal of and interest on this Certificate shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Interest shall be paid by the Paying Agent/Registrar by check sent on or prior to the appropriate date of payment by United States mail, first-class postage prepaid, to the Holder hereof at the address appearing in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder hereof. [END OF FORM] G.Insurance Legend. If bond insurance is obtained by the City or the Purchasers for the Certificates, the Definitive Certificates and the Initial Certificate shall bear an appropriate legend as provided by the insurer, to appear under the following header. [BOND INSURANCE] SECTION 9. Definitions. For all purposes of this Ordinance (as defined below), except as otherwise expressly provided or unless the context otherwise requires: (i) the terms defined in this Section have the meanings assigned to them in this Section, and certain terms used in Sections 27 and 44 of this Ordinance have the meanings assigned to them in Sections 27 and 44 of this Ordinance, and all such terms, include the plural as well as the singular; (ii) all references in this Ordinance to designated “Sections” and other subdivisions are to the designated Sections and other subdivisions of this Ordinance as originally adopted; and (iii) the words “herein”, “hereof’, and “hereunder” and other words of similar import refer to this Ordinance as a whole and not to any particular Section or other subdivision. A.The term Additional Limited Pledge Obligations shall mean (i) any bonds, notes, warrants, certificates of obligation or other evidences of indebtedness hereafter issued by the City payable in part from a limited pledge of and lien on Net Revenues of the System such pledge being subordinate and inferior to the lien thereon and pledge thereof securing the payment of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien Obligations hereafter issued by the City, which pledge of revenues is limited pursuant to Section 1502.052, as amended, Texas Government Code, all as further provided in Section 20 of this Ordinance, and (ii) any obligations issued to refund the foregoing as determined by the City Council in accordance with applicable law. -18- B.The term Authorized Officials shall mean the Mayor, the Mayor Pro Tem, the City Manager, the Assistant City Manager, the Director of Finance, and/or the City Secretary. C.The term Certificates shall mean the $_,___,___ “CITY OF SCHERTZ, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2026” authorized by this Ordinance. D.The term Certificate Fund shall mean the special Fund created and established by the provisions of Section 10 of this Ordinance. E.The term City shall mean the City of Schertz, located in Guadalupe, Comal, and Bexar Counties, Texas and, where appropriate, the City Council of the City. F.The term Closing Date shall mean the date of physical delivery of the Initial Certificates in exchange for the payment of the agreed purchase price for the Certificates. G.The term Collection Date shall mean, when reference is being made to the levy and collection of annual ad valorem taxes, the date the annual ad valorem taxes levied each year by the City become delinquent. H.The term Debt Service Requirements shall mean, as of any particular date of computation, with respect to any obligations and with respect to any period, the aggregate of the amounts to be paid or set aside by the City as of such date or in such period for the payment of the principal of, premium, if any, and interest (to the extent not capitalized) on such obligations; assuming, in the case of obligations without a fixed numerical rate, that such obligations bear interest at the maximum rate permitted by the terms thereof and further assuming in the case of obligations required to be redeemed or prepaid as to principal prior to Stated Maturity, the principal amounts thereof will be redeemed prior to Stated Maturity in accordance with the mandatory redemption provisions applicable thereto. I.The term Depository shall mean an official depository bank of the City. J.The term Fiscal Year shall mean the annual financial accounting period for the System now ending on September 30th of each year; provided, however, the City Council may change such annual financial accounting period to end on another date if such change is found and determined to be necessary for accounting purposes or is required by applicable law. K.The term Government Securities shall mean (i) direct noncallable obligations of the United States, including obligations that are unconditionally guaranteed by, the United States of America; and (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that, on the date the governing body of the issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent. L.The term Gross Revenues for any period shall mean all revenue during such period in respect or on account of the operation or ownership of the System, excluding refundable meter deposits, restricted gifts, and grants in aid of construction, but including earnings and income -19- derived from the investment or deposit of money in any special fund or account (except the Certificate Fund) created and established for the payment or security of the Certificates. M.The term Holder or Holders shall mean the registered owner, whose name appears in the Security Register, for any Certificate. N.The term Interest Payment Date shall mean the date interest is payable on the Certificates, being February 1 and August 1 of each year, commencing February 1, 2027, while any of the Certificates remain Outstanding. O.The term Junior Lien Obligations shall mean (i) any bonds, notes, warrants, certificates of obligation or any similar obligations hereafter issued by the City that are payable in whole or in part from and equally and ratably secured by a junior and inferior lien on and pledge of the Net Revenues of the System, such pledge being junior and inferior to the lien on and pledge of the Net Revenues of the System that may be pledged to the payment of any Prior Lien Obligations hereafter issued by the City, but prior and superior to the lien on and pledge of the Net Revenues of the System that are or will be pledged to the payment of the currently outstanding Limited Pledge Obligations, and the Certificates, or any Subordinate Lien Obligations or Additional Limited Pledge Obligations hereafter issued by the City all as further provided in Section 20 of this Ordinance and (ii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured by a junior and inferior lien on and pledge of the Net Revenues of the System as determined by the City Council in accordance with any applicable law. P.The term Limited Pledge Obligations shall mean (i) the Certificates and the outstanding and unpaid obligations of the City that are payable, in part, from and secured by a subordinate and inferior lien on and pledge of a limited amount of the Net Revenues of the System and designated as follows: (1)“City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2016A”, dated August 1, 2016, originally issued in the aggregate principal amount of $2,375,000; (2)“City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Taxable Series 2016B”, dated August 1, 2016, originally issued in the aggregate principal amount of $1,475,000; (3)“City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2017”, dated May 15, 2017, originally issued in the aggregate principal amount of $5,475,000; (4)“City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2018”, dated July 1, 2018, originally issued in the aggregate principal amount of $10,440,000; (5)City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2019”, dated August 1, 2019, originally issued in the aggregate principal amount of $7,495,000; -20- (6)City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2022”, dated January 1, 2022, originally issued in the aggregate principal amount of $9,390,000; (7)City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2022A”, dated August 1, 2022, originally issued in the aggregate principal amount of $18,530,000; (8)City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2024”, dated September 1, 2024, originally issued in the aggregate principal amount of $19,165,000; (9)City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2025”, dated July 1, 2025, originally issued in the aggregate principal amount of $53,675,000; (10)Upon issuance, the Certificates; and (ii) any obligations hereafter issued to refund any of the foregoing as determined by the City Council in accordance with any applicable law. Q.The term Maintenance and Operating Expenses shall mean all current expenses of operating and maintaining the System not paid from the proceeds of the Certificates, including (1) the cost of all salaries, labor, materials, repairs, and extensions necessary to render efficient service, but only if, in the case of repairs and extensions, they are, in the judgment of the City Council (reasonably and fairly exercised), necessary to maintain operation of the System and render adequate service to the City and the inhabitants thereof, or are necessary to meet some physical accident or condition which would otherwise impair obligations payable from Net Revenues, (2) payments to pension, retirement, health, hospitalization, and other employee benefit funds for employees of the City engaged in the operation or maintenance of the System, (3) payments under contracts for the purchase of water supply, treatment of sewage, or other materials, goods, or services for the System to the extent authorized by law and the provisions of such contract, (4) payments to auditors, attorneys, and other consultants incurred in complying with the obligations of the City hereunder, and (5) any legal liability of the City arising out of the operation, maintenance, or condition of the System, but excluding any allowance for depreciation, property retirement, depletion, obsolescence, and other items not requiring an outlay of cash and any interest on the Certificates or other bonds, notes, warrants, or similar obligations of the City payable from Net Revenues. R.The term Net Revenues for any period shall mean the Gross Revenues of the System less the Maintenance and Operating Expenses of the System. S.The term Ordinance shall mean this ordinance as finally passed and adopted by the City Council of the City. T.The term Outstanding when used in this Ordinance with respect to the Certificates shall mean, as of the date of determination, all Certificates issued and delivered under this Ordinance, except: -21- (1)those Certificates cancelled by the Paying Agent/Registrar or delivered to the Paying Agent/Registrar for cancellation; (2)those Certificates for which payment has been duly provided by the City in accordance with the provisions of Section 29 of this Ordinance; and (3)those Certificates that have been mutilated, destroyed, lost, or stolen and replacement Certificates have been registered and delivered in lieu thereof as provided in Section 25 of this Ordinance. U.The term Pledged Revenues shall mean, while the Certificates remain Outstanding, an amount of Net Revenues not in excess of $1,000. The Pledged Revenues shall be deposited, allocated, and expended in accordance with Section 10 of this Ordinance. V.The term Pledged Revenue Amount shall mean the total amount, not to exceed $1,000 while the Certificates are Outstanding, of Net Revenues that may be transferred in whole or in part by the City in any given Fiscal Year (however, any amounts transferred prior to the final maturity date of the Certificates may not exceed the total amount of $1,000) to the Certificate Fund. W.The term Prior Lien Obligations shall mean (i) any bonds, notes, warrants, certificates of obligation or any similar obligations hereafter issued by the City that are payable in whole or in part from and equally and ratably secured by a first and prior lien on and pledge of the Net Revenues of the System, all as further provided in Section 20 of this Ordinance, and (ii) any obligations hereafter issued to refund the foregoing if issued in a manner so as to be payable from and equally and ratably secured by a first and prior lien on and pledge of the Net Revenues of the System as determined by the City Council in accordance with any applicable law. X.The term Purchasers shall mean the initial purchaser or purchasers of the Certificates named in Section 26 of this Ordinance. Y.The term Stated Maturity shall mean the annual principal payments of the Certificates payable on February 1 of each year the Certificates are Outstanding as set forth in Section 2 of this Ordinance. Z.The term Subordinate Lien Obligations shall mean (i) any bonds, notes, warrants, certificates of obligation, or any similar obligations hereafter issued by the City that are payable in whole or in part from and equally and ratably secured by a lien on and pledge of the Net Revenues of the System, such pledge being subordinate and inferior to the lien on and pledge of the Net Revenues of the System that may be pledged to the payment of any Prior Lien Obligations or Junior Lien Obligations hereafter issued by the City, but prior and superior to the lien on and pledge of the limited amount of the Net Revenues securing, in part, the payment of the currently outstanding Limited Pledge Obligations, the Certificates, and any Additional Limited Pledge Obligations hereafter issued by the City, all as further provided in Section 20 of this Ordinance and (ii) any obligations hereafter issued to refund any of the foregoing if issued in a manner so as to be payable from and equally and ratably secured by a subordinate and inferior lien on and pledge of the Net Revenues as determined by the City Council in accordance with any applicable law. -22- AA. The term System shall mean all properties, facilities and plants currently owned, operated, and maintained by the City for the supply, treatment, and transmission of treated potable water, for the collection and treatment of wastewater, together will all future extensions, improvements, replacements and additions thereto, whether situated within or without the limits of the City and the City expressly reserves the right at its sole discretion to include additional utility, telecommunications, technology, or similar enterprise services as components of the System; provided, however, that notwithstanding the foregoing, and to the extent now or hereafter authorized or permitted by law, the term System shall not mean to include facilities of any kind which are declared not to be a part of the System and which are acquired or constructed by or on behalf of the City with the proceeds from the issuance of Special Facilities Bonds, which are hereby defined as being special revenue obligations of the City which are not payable from Net Revenues but which are payable from and equally and ratably secured by other liens on and pledges of any revenues, sources or payments, not pledged to the payment of the Bonds Similarly Secured including, but not limited to, special contract revenues or payments received from any other legal entity in connection with such facilities. SECTION 10. Certificate Fund – Investments. For the purpose of paying the interest on and to provide a sinking fund for the payment, redemption, and retirement of the Certificates, there shall be and is hereby created a special fund to be designated “COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2026, INTEREST AND SINKING FUND” (the Certificate Fund), which fund shall be kept and maintained at the Depository, and money deposited in the Certificate Fund shall be used for no other purpose and shall be maintained as provided in Section 27. Authorized Officials of the City are hereby authorized and directed to make withdrawals from the Certificate Fund sufficient to pay the purchase price or the amount of principal of, premium, if any, and interest on the Certificates as the same become due and payable and shall cause to be transferred to the Paying Agent/Registrar from money on deposit in the Certificate Fund an amount sufficient to pay the amount of principal and/or interest stated to mature on the Certificates, such transfer of funds to the Paying Agent/Registrar to be made in such manner as will cause immediately available funds to be deposited with the Paying Agent/Registrar on or before the business day next preceding each interest and principal payment date for the Certificates. The City, at its sole discretion, may deposit the Pledged Revenue Amount to the Certificate Fund. The Pledged Revenue Amount, if deposited, shall be expended annually to pay principal of and interest on the Certificates as the same become due and payable. This Pledged Revenue Amount shall be accounted for and transferred to the Paying Agent/Registrar in accordance with the provisions of the previous paragraph of this Section. Pending the transfer of funds to the Paying Agent/Registrar, money deposited in any fund created and established by this Ordinance may, at the option of the City, be placed in time deposits, certificates of deposit, guaranteed investment contracts, or similar contractual agreements, as permitted by the provisions of the Public Funds Investment Act, as amended, Chapter 2256, Texas Government Code, secured (to the extent not insured by the Federal Deposit Insurance Corporation) by obligations of the type hereinafter described, or be invested, as authorized by any law, including investments held in book-entry form, in securities, including, but not limited to, direct obligations of the United States of America, obligations guaranteed or insured by the United States of America, which, in the opinion of the Attorney General of the United States, are backed -23- by its full faith and credit or represent its general obligations, or invested in indirect obligations of the United States of America, including, but not limited to, evidences of indebtedness issued, insured or guaranteed by such governmental agencies as the Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal Home Loan Banks, Government National Mortgage Association, Small Business Administration, Farmers Home Administration, Federal Home Loan Mortgage Association, or Federal Housing Association; provided that all such deposits and investments shall be made in such a manner that the money required to be expended from such fund will be available at the proper time or times. All interest and income derived from deposits and investments in any fund established pursuant to the provisions of this Ordinance shall be credited to, and any losses debited to, such fund. All such investments shall be sold promptly when necessary to prevent any default in connection with the Certificates. SECTION 11. Tax Levy. To provide for the payment of the Debt Service Requirements on the Certificates being (i) the interest on the Certificates and (ii) a sinking fund for their redemption at Stated Maturity or a sinking fund of 2% (whichever amount shall be the greater), there shall be and there is hereby levied for the current year and each succeeding year thereafter while the Certificates or any interest thereon shall remain Outstanding, a sufficient tax, within the limitations prescribed by law, on each one hundred dollars valuation of taxable property in the City, adequate to pay such Debt Service Requirements, full allowance being made for delinquencies and costs of collection; said tax shall be assessed and collected each year and applied to the payment of the Debt Service Requirements, and the same shall not be diverted to any other purpose. The taxes so levied and collected shall be paid into the Certificate Fund and are thereafter pledged to the payment of the Certificates. The City Council hereby declares its purpose and intent to provide and levy a tax legally and fully sufficient to pay the Debt Service Requirements, it having been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient tax in consideration of all other outstanding indebtedness and other obligations of the City. The amount of taxes to be provided annually for the payment of the principal of and interest on the Certificates shall be determined and accomplished in the following manner: A.Prior to the date the City Council establishes the annual tax rate and passes an ordinance levying ad valorem taxes each year, the City Council shall determine: (1)the amount of Debt Service Requirements to become due and payable on the Certificates between the Collection Date for the taxes then to be levied and the Collection Date for the taxes to be levied during the next succeeding calendar year; (2)the amount on deposit in the Certificate Fund after (a) deducting therefrom the total amount of Debt Service Requirements to become due on Certificates prior to the Collection Date for the ad valorem taxes to be levied and (b) adding thereto the amount of the Pledged Revenues, if any, to be appropriated and allocated during such year to pay such Debt Service Requirements, if any, prior to the Collection Date for the ad valorem taxes to be levied; and (3)the amount of Pledged Revenues, if any, to be appropriated and to be set aside for the payment of the Debt Service Requirements on the Certificates between the -24- Collection Date for the taxes then to be levied and the Collection Date for the taxes to be levied during the next succeeding Fiscal Year. B.The amount of taxes to be levied annually each year to pay the Debt Service Requirements on the Certificates shall be the amount established in paragraph (1) above less the sum total of the amounts established in paragraphs (2) and (3), after taking into consideration delinquencies and costs of collecting such annual taxes. SECTION 12. Pledge of Revenues. The City hereby covenants and agrees that, subject to (i) any prior lien on and pledge of the Net Revenues of the System to the payment and security of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien Obligations hereafter issued by the City and (ii) the lien on and pledge of a limited amount of the Net Revenues to the payment and security of the currently outstanding Limited Pledge Obligations, the Pledged Revenues are hereby irrevocably pledged to the payment of the principal of and interest on the Certificates and the pledge of Pledged Revenues herein made for the payment of the Certificates shall constitute a lien on the Pledged Revenues in accordance with the terms and provisions hereof and be valid and binding without any physical delivery thereof or further act by the City. SECTION 13. System Fund. The City hereby covenants and agrees that all Gross Revenues derived from the operation of the System shall be kept separate and apart from all other funds, accounts and money of the City and shall be deposited as collected into the “CITY OF SCHERTZ, TEXAS UTILITY SYSTEM FUND” (the System Fund). All money deposited in the System Fund shall be pledged and appropriated to the extent required for the following purposes and in the order of priority shown: First: to the payment of the reasonable and proper Maintenance and Operating Expenses of the System required by statute or ordinances authorizing the issuance of any indebtedness of the City to be a first charge on and claim against the Gross Revenues of the System; Second: To the payment of the amounts that must be deposited in the special funds and accounts created and established for the payment, security, and benefit of any Prior Lien Obligations hereafter issued by the City in accordance with the terms and provisions of any ordinance authorizing their issuance; Third: To the payment of the amounts that must be deposited in the special funds and accounts created and established for the payment, security, and benefit of any Junior Lien Obligations hereafter issued by the City in accordance with the terms and provisions of any ordinance authorizing their issuance; Fourth: To the payment of the amounts that must be deposited in the special funds and accounts created and established for the payment, security, and benefit of any Subordinate Lien Obligations hereafter issued by the City in accordance with the terms and provisions of any ordinance authorizing their issuance; and Fifth: To the payment of the amounts that may be deposited in the special funds and accounts established for the payment of the currently outstanding Limited -25- Pledge Obligations, including the Certificates, and any Additional Limited Pledge Obligations hereafter issued by the City in accordance with the terms and provisions of any ordinances authorizing their issuance. Any Net Revenues remaining in the System Fund after satisfying the foregoing payments, or making adequate and sufficient provision for the payment, security and benefit thereof, may be appropriated and used for any other City purpose now or hereafter permitted by law. SECTION 14. Deposits to Certificate Fund – Surplus Certificate Proceeds. The City hereby covenants and agrees to cause to be deposited in the Certificate Fund prior to a principal and interest payment date for the Certificates, from the Pledged Revenues in the System Fund, after the deduction of all payments required to be made to the special funds or accounts created for the payment, security, and benefit of (i) any Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien Obligations hereafter issued by the City and (ii) the currently outstanding Limited Pledge Obligations, including the Certificates, and any amounts budgeted to be paid therefrom in such Fiscal Year. Accrued interest received from the Purchasers of the Certificates shall be deposited to the Certificate Fund and ad valorem taxes levied and collected for the benefit of the Certificates shall be deposited to the Certificate Fund. In addition, any surplus proceeds, including investment income therefrom, from the sale of the Certificates not expended for authorized purposes shall be deposited in the Certificate Fund, and such amounts so deposited shall reduce the sums otherwise required to be deposited in said fund from ad valorem taxes. SECTION 15. Security of Funds. All money on deposit in the funds for which this Ordinance makes provision (except any portion thereof as may be at any time properly invested as provided herein) shall be secured in the manner and to the fullest extent required by the laws of the State of Texas for the security of public funds, and money on deposit in such funds shall be used only for the purposes permitted by this Ordinance. SECTION 16. Maintenance of System - Insurance. The City covenants and agrees that while the Certificates remain Outstanding it will maintain and operate the System with all possible efficiency and maintain casualty and other insurance (including a system of self-insurance) on the properties of the System and its operations of a kind and in such amounts customarily carried by municipal corporations in the State of Texas engaged in a similar type of business and that it will faithfully and punctually perform all duties with reference to the System required by the laws of the State of Texas. All money received from losses under such insurance policies, other than public liability policies, are held for the benefit of the holders of the Certificates until and unless the proceeds are paid out in making good the loss or damage in respect of which such proceeds are received, either by replacing the property destroyed or repairing the property damaged, and adequate provision for making good such loss or damage must be made within ninety (90) days after the date of loss. The payment of premiums for all insurance policies required under the provisions hereof shall be considered Maintenance and Operating Expenses. Nothing in this Ordinance shall be construed as requiring the City to expend any funds which are derived from sources other than the operation of the System but nothing herein shall be construed as preventing the City from doing so. -26- SECTION 17. Rates and Charges. The City hereby covenants and agrees with the Holders of the Certificates that rates and charges for utility services afforded by the System will be established and maintained to provide Gross Revenues sufficient at all times: A.to pay, together with any other lawfully available funds, all operating, maintenance, depreciation, replacement, betterment, and other costs incurred in the maintenance and operation of the System, including, but not limited to, Maintenance and Operating Expenses; provided, however, that the City expressly reserves the right to utilize other lawfully available funds to pay the Maintenance and Operating Expenses; B.to produce Net Revenues sufficient, together with any other lawfully available funds, to pay (i) the interest on and principal of any Prior Lien Obligations hereafter issued by the City as the same becomes due and payable and the amounts required to be deposited in any special fund created and established for the payment, security, and benefit thereof, (ii) the interest on and principal of any Junior Lien Obligations hereafter issued by the City as the same becomes due and payable and the amounts required to be deposited in any special fund created and established for the payment, security, and benefit thereof, (iii) the interest on and principal of any Subordinate Lien Obligations hereafter issued by the City as the same becomes due and payable and the amounts required to be deposited in any special fund created and established for the payment, security, and benefit thereof, and (iv) the amounts that may be deposited in the special funds established for the payment of the currently outstanding Limited Pledge Obligations, the Certificates, and any Additional Limited Pledge Obligations hereafter issued by the City; and C.to pay other legally incurred indebtedness payable from the Net Revenues of the System and/or secured by a lien on the System or the Net Revenues thereof. SECTION 18. Records and Accounts - Annual Audit. The City further covenants and agrees that so long as any of the Certificates remain Outstanding it will keep and maintain separate and complete records and accounts pertaining to the operations of the System in which complete and correct entries shall be made of all transactions relating thereto, as provided by Chapter 1502, as amended, Texas Government Code, or other applicable law. The Holders of the Certificates or any duly authorized agent or agents of the Holders shall have the right to inspect the System and all properties comprising the same. The City further agrees that, following the close of each Fiscal Year, it will cause an audit of such books and accounts to be made by an independent firm of certified public accountants. Expenses incurred in making the annual audit of the operations of the System are to be regarded as Maintenance and Operating Expenses. SECTION 19. Remedies in Event of Default. In addition to all the rights and remedies provided by the laws of the State of Texas, the City covenants and agrees particularly that in the event the City (a) defaults in the payments to be made to the Certificate Fund, or (b) defaults in the observance or performance of any other of the covenants, conditions, or obligations set forth in this Ordinance, the Holders of any of the Certificates shall be entitled to seek a writ of mandamus issued by a court of proper jurisdiction compelling and requiring the governing body of the City and other officers of the City to observe and perform any covenant, condition, or obligation prescribed in this Ordinance. -27- No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein, and every such right and power may be exercised from time to time and as often as may be deemed expedient. The specific remedies herein provided shall be cumulative of all other existing remedies and the specification of such remedies shall not be deemed to be exclusive. SECTION 20. Issuance of Prior Lien Obligations, Junior Lien Obligations, Subordinate Lien Obligations, and Additional Limited Pledge Obligations. The City hereby expressly reserves the right to hereafter issue bonds, notes, warrants, certificates of obligation, or similar obligations, payable, in whole or in part, as appropriate, from and secured by a pledge of and lien on the Net Revenues of the System with the following priorities, without limitation as to principal amount, but subject to any terms, conditions, or restrictions applicable thereto under existing ordinances, laws, or otherwise: A.Prior Lien Obligations payable from and equally and ratably secured by a first and prior lien on and pledge of the Net Revenues of the System; B.Junior Lien Obligations payable from and equally and ratably secured by a lien on and pledge of the Net Revenues that is junior and inferior to the lien on and pledge thereof securing the payment of any Prior Lien Obligations hereafter issued by the City, but prior and superior to the lien on and pledge of the Net Revenues securing in whole or in part the payment of the currently outstanding Limited Pledge Obligations, the Certificates, and any Subordinate Lien Obligations or Additional Limited Pledge Obligations hereafter issued by the City; C.Subordinate Lien Obligations payable from and equally and ratably secured by a lien on and pledge of the Net Revenues that is subordinate and inferior to the lien on and pledge thereof securing the payment of any Prior Lien Obligations or Junior Lien Obligations hereafter issued by the City, but prior and superior to the lien on and pledge of the Net Revenues securing, in part, the payment of the currently outstanding Limited Pledge Obligations, the Certificates, and any Additional Limited Pledge Obligations hereafter issued by the City; and D.Additional Limited Pledge Obligations secured by a lien on and pledge of a limited amount of the Net Revenues in accordance with the provisions of the following paragraph. Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien Obligations, if issued, may be payable, in whole or in part, from Net Revenues (without impairment of the obligation of contract with the holders of the currently outstanding Limited Pledge Obligations and the Certificates) upon such terms and conditions as the City Council may determine. Additional Limited Pledge Obligations, if issued and payable, in whole or in part, from Pledged Revenues (defined in the same or similar terms as provided in Section 9 of this Ordinance or in the ordinances authorizing the issuance of the currently outstanding Limited Pledge Obligations), shall not in any event be construed to be payable from the Pledged Revenues authorized by this Ordinance or in the respective ordinances authorizing the issuance of the currently outstanding Limited Pledge Obligations to be budgeted and appropriated for the payment of the Certificates or the currently outstanding Limited Pledge Obligations, respectively. However, the lien on and pledge of the limited amount of Net Revenues securing, in part, the payment of the Certificates, the Limited Pledge Obligations, and any Additional Limited Pledge Obligations shall be subordinate and -28- inferior to the pledge of and lien on the Net Revenues securing the payment of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien Obligations hereafter issued by the City. SECTION 21. Special Covenants. The City hereby further covenants that: A.it has the lawful power to pledge the Pledged Revenues supporting the Certificates and has lawfully exercised said powers under the laws of the State of Texas, including power existing under Chapter 1502, as amended, Texas Government Code, the Certificate of Obligation Act of 1971, as amended, Texas Local Government Code, Section 271.041 through Section 271.064, and the City’s Home Rule Charter; B.other than for the payment of the currently outstanding Limited Pledge Obligations and the Certificates, the Net Revenues of the System have not in any manner been pledged to the payment of any debt or obligation of the City or of the System; C.as long as any Certificates or any interest thereon remain Outstanding, the City will not sell, lease or encumber (except in the manner provided in Section 20 of this Ordinance) the System or any substantial part thereof, provided that this covenant shall not be construed to prohibit the sale of such machinery, or other properties or equipment which has become obsolete or otherwise unsuited to the efficient operation of the System; D.to the extent that it legally may, the City further covenants and agrees that, so long as any of the Certificates, or any interest thereon, are Outstanding, no franchise shall be granted for the installation or operation of any competing utility systems other than those owned by the City, and the operation of any such systems by anyone other than the City is hereby prohibited; and E.no free service of the System shall be allowed, and should the City or any of its agents or instrumentalities make use of the services and facilities of the System, payment of the reasonable value thereof shall be made by the City out of funds from sources other than the revenues and income of the System. SECTION 22. Application of the Covenants and Agreements of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien Obligations. It is the intention of the City Council and accordingly hereby recognized and stipulated that the provisions, agreements, and covenants contained herein bearing upon the management and operations of the System, and the administration and application of Gross Revenues derived from the operation thereof, shall to the extent possible be harmonized with like provisions, agreements, and covenants contained in the ordinances authorizing the issuance of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien Obligations hereafter issued by the City, and to the extent of any irreconcilable conflict between the provisions contained herein and in the ordinances authorizing the issuance of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien Obligations, the provisions, agreements and covenants contained therein shall prevail to the extent of such conflict and be applicable to this Ordinance, especially the priority of rights and benefits conferred thereby to the holders of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien Obligations hereafter issued by the City. It is expressly recognized that prior to the issuance of any Prior Lien Obligations, Junior Lien Obligations, Subordinate Lien Obligations, or Additional -29- Limited Pledge Obligations, the City must comply with each of the conditions precedent contained in the respective ordinances authorizing the issuance of the currently outstanding Limited Pledge Obligations and the Certificates, as appropriate. SECTION 23. Notices to Holders – Waiver. Wherever this Ordinance provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States mail, first-class postage prepaid, to the address of each Holder as it appears in the Security Register at the close of business on the business day next preceding the mailing of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Holders. Where this Ordinance provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 24. Cancellation. All Certificates surrendered for payment, redemption, transfer, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly cancelled by it and, if surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already cancelled, shall be promptly cancelled by the Paying Agent/Registrar. The City may at any time deliver to the Paying Agent/Registrar for cancellation any Certificates previously certified or registered and delivered which the City may have acquired in any manner whatsoever, and all Certificates so delivered shall be promptly cancelled by the Paying Agent/Registrar. All cancelled Certificates held by the Paying Agent/Registrar shall be destroyed as directed by the City. SECTION 25. Mutilated, Destroyed, Lost, and Stolen Certificates. If (1) any mutilated Certificate is surrendered to the Paying Agent/Registrar, or the City and the Paying Agent/Registrar receive evidence to their satisfaction of the destruction, loss, or theft of any Certificate, and (2) there is delivered to the City and the Paying Agent/Registrar such security or indemnity as may be required to save each of them harmless, then, in the absence of notice to the City or the Paying Agent/Registrar that such Certificate has been acquired by a bona fide purchaser, the City shall execute and, upon its request, the Paying Agent/Registrar shall register and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost, or stolen Certificate, a new Certificate of the same Stated Maturity and interest rate and of like tenor and principal amount, bearing a number not contemporaneously Outstanding. In case any such mutilated, destroyed, lost, or stolen Certificate has become or is about to become due and payable, the City in its discretion may, instead of issuing a new Certificate, pay such Certificate. Upon the issuance of any new Certificate or payment in lieu thereof, under this Section, the City may require payment by the Holder of a sum sufficient to cover any tax or other -30- governmental charge imposed in relation thereto and any other expenses and charges (including attorney’s fees and the fees and expenses of the Paying Agent/Registrar) connected therewith. Every new Certificate issued pursuant to this Section in lieu of any mutilated, destroyed, lost, or stolen Certificate shall constitute a replacement of the prior obligation of the City, whether or not the mutilated, destroyed, lost, or stolen Certificate shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding Certificates. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost, or stolen Certificates. SECTION 26. Sale of Certificates at Negotiated Sale – Approval of the Official Statement – Proceeds of Sale. The Certificates authorized by this Ordinance are hereby sold by the City to Frost Bank, as the initial purchasers of the Certificates pursuant at a negotiated sale (the Purchasers, having all of the rights, benefits, duties, and obligations of a Holder) in accordance with the provisions of an Purchase Contract (the Purchase Contract), dated as of August 4, 2026, attached hereto as Exhibit B and incorporated herein by reference as a part of the Ordinance for all purposes, at the price of par, plus a [net] reoffering premium of $_____ (including the Purchasers’ compensation of $_____), plus accrued interest to the date of initial delivery of the Certificates to the Purchasers and is hereby approved and confirmed. The Initial Certificate shall be registered in the name of Frost Bank. The pricing and terms of the sale of the Certificates are hereby found and determined to be the most advantageous reasonably obtainable by the City. Any Authorized Official is hereby authorized and directed to execute the Purchase Contract for and on behalf of the City and as the act and deed of this City Council, and in regard to the approval and execution of the Purchase Contract, the City Council hereby finds, determines and declares that the representations, warranties, and agreements of the City contained in the Purchase Contract are true and correct in all material respects and shall be honored and performed by the City. Delivery of the Certificates to the Purchasers shall occur as soon as practicable after the adoption of this Ordinance, upon payment therefor in accordance with the terms of the Purchase Contract. Proceeds from the sale of the Certificates shall be applied as follows: (1)Accrued interest, in the amount of $_____, received from the Purchasers shall be deposited into the Certificate Fund. (2)The City received a [net] reoffering premium from the sale of the Certificates of $_____ which is hereby allocated by the City in the following manner: (A) $_____ to pay the Purchasers’ compensation, (B) $_____ to pay the costs of issuance, and (C) the remaining $_____ shall be deposited into the construction account established in paragraph (3) below. (3)The balance of the proceeds (including a portion of the reoffering premium in the amount of $_____ as described above and principal in the amount of $_,___,___.00, totaling $_____ derived from the sale of the Certificates (after paying costs of issuance) shall be deposited into the special construction account or accounts created for the projects to be constructed with the proceeds of the Certificates. This special construction account -31- shall be established and maintained at the Depository and shall be invested in accordance with the provisions of Section 10 of this Ordinance. Interest earned on the proceeds of the Certificates pending completion of construction of the projects financed with such proceeds shall be accounted for, maintained, deposited, and expended as permitted by the provisions of Chapter 1201, as amended, Texas Government Code, or as required by any other applicable law. Thereafter, such amounts shall be expended in accordance with Section 14 of this Ordinance. Furthermore, the City hereby ratifies, confirms, and approves in all respects (i) the City’s prior determination that the Preliminary Official Statement was, as of its date, “deemed final” in accordance with SEC Rule 15c12-12, as amended (the Rule (hereinafter defined) and (ii) the use and distribution of the Preliminary Official Statement by the Purchasers in connection with the public offering and sale of the Certificates. The final Official Statement, being a modification and amendment of the Preliminary Official Statement to reflect the terms of sale referenced in the Purchase Contract (together with such changes approved by any Authorized Official, any one or more of said officials), shall be and is hereby in all respects approved and the Purchasers are hereby authorized to use and distribute the final Official Statement, dated August 4, 2026, in the reoffering, sale and delivery of the Certificates to the public. The Mayor and City Secretary are further authorized and directed to manually execute and deliver for and on behalf of the City copies of the Official Statement in final form as may be required by the Purchasers, and such final Official Statement in the form and content manually executed by said officials shall be deemed to be approved by the City Council and constitute the Official Statement authorized for distribution and use by the Purchasers. The proper officials of the City are hereby authorized to execute and deliver a certificate pertaining to such Official Statement as prescribed therein, dated as of the date of payment for and delivery of the Certificates. SECTION 27. Covenants to Maintain Tax-Exempt Status. A.Definitions. When used in this Section, the following terms have the following meanings: “Closing Date” means the date on which the Certificates are first authenticated and delivered to the initial purchasers against payment therefor. “Code” means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. “Computation Date” has the meaning set forth in Section 1.148-1(b) of the Regulations. “Gross Proceeds” means any proceeds as defined in Section 1.148-1(b) of the Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the Regulations, of the Certificates. “Investment” has the meaning set forth in Section 1.148-1(b) of the Regulations. -32- “Nonpurpose Investment” means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds of the Certificates are invested and which is not acquired to carry out the governmental purposes of the Certificates. “Rebate Amount” has the meaning set forth in Section 1.148-1(b) of the Regulations. “Regulations” means any proposed, temporary, or final Income Tax Regulations issued pursuant to sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to the Certificates. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. “Yield” of (1)any Investment has the meaning set forth in Section 1.148-5 of the Regulations; and (2)the Certificates means the combined yield on the Bonds and the Certificates, treating them as a single issue and as calculated pursuant to Section 1.148-4 of the Regulations. B.Not to Cause Interest to Become Taxable. The City shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Certificate to become includable in the gross income, as defined in section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the City receives a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Certificate, the City shall comply with each of the specific covenants in this Section. C.No Private Use or Private Payments. Except to the extent it will not cause the Certificates to become “private activity bonds” within the meaning of section 141 of the Code and the Regulations and rulings thereunder, the City shall at all times prior to the last Stated Maturity of Certificates: (1)exclusively own, operate and possess all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Certificates, and not use or permit the use of such Gross Proceeds (including all contractual arrangements with terms different than those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity (including the United States or any agency, department and instrumentality thereof) other than a state or local government, unless such use is solely as a member of the general public; and -33- (2)not directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the Certificates or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds, other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. D.No Private Loan. Except to the extent it will not cause the Certificates to become “private activity bonds” within the meaning of section 141 of the Code and the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Certificates to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be “loaned” to a person or entity if- (1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; (2) capacity in or service from such property is committed to such person or entity under a take-or-pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. E.Not to Invest at Higher Yield. Except to the extent it will not cause the Certificates to become “arbitrage bonds” within the meaning of section 148 of the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the final Stated Maturity of the Certificates directly or indirectly invest Gross Proceeds in any Investment, if as a result of such investment the Yield of any Investment acquired with Gross Proceeds, whether then held or previously disposed of, materially exceeds the Yield of the Certificates. F.Not Federally Guaranteed. Except to the extent permitted by section 149(b) of the Code and the Regulations and rulings thereunder, the City shall not take or omit to take any action which would cause the Certificates to be federally guaranteed within the meaning of section 149(b) of the Code and the Regulations and rulings thereunder. G.Information Report. The City shall timely file the information required by section 149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in such place as the Secretary may prescribe. H.Rebate of Arbitrage Profits. Except to the extent otherwise provided in section 148(f) of the Code and the Regulations and rulings thereunder: (1)The City shall account for all Gross Proceeds (including all receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six years after the day on which the last Outstanding Certificate is discharged. However, to the extent permitted by law, the City may commingle Gross Proceeds of the Certificates with other money of the City, provided that the City separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith. -34- (2)Not less frequently than each Computation Date, the City shall calculate the Rebate Amount in accordance with rules set forth in section 148(f) of the Code and the Regulations and rulings thereunder. The City shall maintain such calculations with its official transcript of proceedings relating to the issuance of the Certificates until six years after the final Computation Date. (3)As additional consideration for the purchase of the Certificates by the Purchasers and the loan of the money represented thereby and in order to induce such purchase by measures designed to insure the excludability of the interest thereon from the gross income of the owners thereof for federal income tax purposes, the City shall pay to the United States out of the Certificate Fund or its general fund, as permitted by applicable Texas statute, regulation or opinion of the Attorney General of the State of Texas, the amount that when added to the future value of previous rebate payments made for the Certificates equals (i) in the case of a Final Computation Date as defined in Section 1.148- 3(e)(2) of the Regulations, one hundred percent (100%) of the Rebate Amount on such date; and (ii) in the case of any other Computation Date, ninety percent (90%) of the Rebate Amount on such date. In all cases, the rebate payments shall be made at the times, in the installments, to the place and in the manner as is or may be required by section 148(f) of the Code and the Regulations and rulings thereunder, and shall be accompanied by Form 8038-T or such other forms and information as is or may be required by section 148(f) of the Code and the Regulations and rulings thereunder. (4)The City shall exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraphs (2) and (3), and if an error is made, to discover and promptly correct such error within a reasonable amount of time thereafter (and in all events within one hundred eighty (180) days after discovery of the error), including payment to the United States of any additional Rebate Amount owed to it, interest thereon, and any penalty imposed under Section 1.148-3(h) of the Regulations. I.Not to Divert Arbitrage Profits. Except to the extent permitted by section 148 of the Code and the Regulations and rulings thereunder, the City shall not, at any time prior to the earlier of the Stated Maturity or final payment of the Certificates, enter into any transaction that reduces the amount required to be paid to the United States pursuant to Subsection H of this Section because such transaction results in a smaller profit or a larger loss than would have resulted if the transaction had been at arm’s length and had the Yield of the Certificates not been relevant to either party. J.Certificates Not Hedge Bonds. (1)The City reasonably expects to spend at least 85% of the spendable proceeds of the Certificates within three years after such Certificates are issued. (2)Not more than 50% of the proceeds of the Certificates will be invested in Nonpurpose Investments having a substantially guaranteed Yield for a period of 4 years or more. -35- K.Elections. The City hereby directs and authorizes any Authorized Official, either individually or any combination of them, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection with the Certificates, in the Certificate as to Tax Exemption or similar or other appropriate certificate, form or document. Such elections shall be deemed to be made on the Closing Date. L.Qualified Tax-Exempt Obligations. The City hereby designates the Certificates as qualified tax-exempt obligations for purposes of section 265(b) of the Code. In furtherance of such designation, the City represents, covenants and warrants the following: (a) during the calendar year in which the Certificates are issued, the City (including any subordinate entities) has not designated nor will designate obligations, which when aggregated with the Certificates, will result in more than $10,000,000 of “qualified tax-exempt obligations” being issued; (b) the City reasonably anticipates that the amount of tax-exempt obligations issued during the calendar year 2026 by the City (including any subordinate entities) will not exceed $10,000,000; and the City will take such action or refrain from such action as is necessary in order that the Certificates will not be considered “private activity bonds” within the meaning of section 141 of the Code. SECTION 28. Control and Custody of Certificates. The Mayor of the City shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas and shall take and have charge and control of the Certificates pending their approval by the Attorney General of the State of Texas, the registration thereof by the Comptroller of Public Accounts of the State of Texas and the delivery of the Certificates to the Purchasers. Furthermore, any Authorized Official, either individually or any combination of them, is hereby authorized and directed to furnish and execute such documents relating to the City and its financial affairs as may be necessary for the issuance of the Certificates, the approval of the Attorney General of the State of Texas and their registration by the Comptroller of Public Accounts of the State of Texas and, together with the City’s financial advisors, Bond Counsel, and the Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial Certificate to the Purchasers and, when requested in writing by the Purchasers, the initial exchange thereof for definitive Certificates. SECTION 29. Satisfaction of Obligation of City. If the City shall pay or cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Certificates, at the times and in the manner stipulated in this Ordinance, then the pledge of taxes levied and the lien on and pledge of the Pledged Revenues under this Ordinance and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. Certificates, or any principal amount(s) thereof, shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in full such Certificates or the principal amount(s) thereof at Stated Maturity or to the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, and/or (ii) Government Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities will mature as to principal and interest in -36- such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any money deposited therewith, if any, to pay when due the principal of and interest on such Certificates, or the principal amount(s) thereof, on and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have been made) the redemption date thereof for the Certificates. In the event of a defeasance of the Certificates, the City shall deliver a certificate from its financial advisor, the Paying Agent/Registrar, an independent accounting firm, or another qualified third party concerning the deposit of cash and/or Government Securities to pay, when due, the principal of, redemption premium (if any), and interest due on any defeased Certificate. To the extent applicable, if at all, the City covenants that no deposit of money or Government Securities will be made under this Section and no use made of any such deposit which would cause the Certificates to be treated as arbitrage bonds within the meaning of section 148 of the Code (as defined in Section 27 hereof). Any money so deposited with the Paying Agent/Registrar, and all income from Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of the Certificates, or any principal amount(s) thereof, or interest thereon with respect to which such money has been so deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Certificates and remaining unclaimed for a period of three (3) years after the Stated Maturity of the Certificates, or applicable redemption date of the Certificates, such money was deposited and is held in trust to pay shall upon the request of the City be remitted to the City against a written receipt therefor, subject to the unclaimed property laws of the State of Texas. Notwithstanding any other provision of this Ordinance to the contrary, it is hereby provided that any determination not to redeem defeased Certificates that is made in conjunction with the payment arrangements specified in subsection (i) or (ii) above shall not be irrevocable, provided that: (1) in the proceedings providing for such defeasance, the City expressly reserves the right to call the defeased Certificates for redemption; (2) gives notice of the reservation of that right to the owners of the defeased Certificates immediately following the defeasance; (3) directs that notice of the reservation be included in any redemption notices that it authorizes; and (4) at the time of the redemption, satisfies the conditions of (i) or (ii) above with respect to such defeased debt as though it was being defeased at the time of the exercise of the option to redeem the defeased Certificates, after taking the redemption into account in determining the sufficiency of the provisions made for the payment of the defeased Certificates. SECTION 30. Printed Opinion. The Purchasers’ obligation to accept delivery of the Certificates is subject to their being furnished a final opinion of Norton Rose Fulbright US LLP, Austin, Texas, as Bond Counsel, approving certain legal matters as to the Certificates, this opinion to be dated and delivered as of the date of initial delivery and payment for such Certificates. Printing of a true and correct copy of this opinion on the reverse side of each of the Certificates, with appropriate certificate pertaining thereto executed by facsimile signature of the City Secretary of the City is hereby approved and authorized. SECTION 31. CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Certificates. It is expressly provided, however, that the presence or absence of CUSIP numbers on -37- the definitive Certificates shall be of no significance or effect as regards the legality thereof, and neither the City nor Bond Counsel are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Certificates. SECTION 32. Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof. SECTION 33. Ordinance a Contract, Amendments - Outstanding Certificates. The City acknowledges that the covenants and obligations of the City herein contained are a material inducement to the purchase of the Certificates. This Ordinance shall constitute a contract with the Holders from time to time, binding on the City and its successors and assigns, and it shall not be amended or repealed by the City so long as any Certificate remains Outstanding except as permitted in this Section. The City may, without the consent of or notice to any Holders, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the written consent of Holders holding a majority in aggregate principal amount of the Certificates then Outstanding affected thereby, amend, add to, or rescind any of the provisions of this Ordinance; provided, however, that, without the consent of all Holders of Outstanding Certificates, no such amendment, addition, or rescission shall (1) extend the time or times of payment of the principal of and interest on the Certificates, reduce the principal amount thereof, the redemption price therefor, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of, premium, if any, or interest on the Certificates, (2) give any preference to any Certificate over any other Certificate, or (3) reduce the aggregate principal amount of Certificates required for consent to any such amendment, addition, or rescission. SECTION 34. Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is intended or shall be construed to confer upon any person other than the City, Bond Counsel, Paying Agent/Registrar, and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit of the City, Bond Counsel, Paying Agent/Registrar, and the Holders. SECTION 35. Inconsistent Provisions. All ordinances and resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters ordained herein. SECTION 36. Governing Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 37. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Ordinance would have been enacted without such invalid provision. -38- SECTION 38. Construction of Terms. If appropriate in the context of this Ordinance, words of the singular number shall be considered to include the plural, words of the plural number shall be considered to include the singular, and words of the masculine, feminine or neuter gender shall be considered to include the other genders. SECTION 39. Incorporation of Preamble Recitals. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part of the judgment and findings of the City Council of the City. SECTION 40. Authorization of Paying Agent/Registrar Agreement. The City Council of the City hereby finds and determines that it is in the best interest of the City to authorize the execution of a Paying Agent/Registrar Agreement concerning the payment, exchange, registration, and transferability of the Certificates. A copy of the Paying Agent/Registrar Agreement is attached hereto, in substantially final form, as Exhibit A and is incorporated by reference to the provisions of this Ordinance. SECTION 41. Public Meeting. It is officially found, determined, and declared that the meeting at which this Ordinance 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 Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code. SECTION 42. Unavailability of Authorized Publication. If, because of the temporary or permanent suspension of any newspaper, journal, or other publication, or, for any reason, publication of notice cannot be made meeting any requirements herein established, any notice required to be published by the provisions of this Ordinance shall be given in such other manner and at such time or times as in the judgment of the City or of the Paying Agent/Registrar shall most effectively approximate such required publication and the giving of such notice in such manner shall for all purposes of this Ordinance be deemed to be in compliance with the requirements for publication thereof. SECTION 43. No Recourse Against City Officials. No recourse shall be had for the payment of principal of, premium, if any, or interest on any Certificate or for any claim based thereon or on this Ordinance against any official of the City or any person executing any Certificate. SECTION 44. Continuing Disclosure Undertaking. A.Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: EMMA means the MSRB’s Electronic Municipal Market Access system, accessible by the general public, without charge, on the internet through the uniform resource locator (URL) http://www.emma.msrb.org. Financial Obligation means a (a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt -39- obligation; or (c) guarantee of a debt obligation or any such derivative instrument; provided that “financial obligation” shall not include municipal securities (as defined in the Securities Exchange Act of 1934, as amended) as to which a final official statement (as defined in the Rule) has been provided to the MSRB consistent with the Rule. MSRB means the Municipal Securities Rulemaking Board. Rule means SEC Rule 15c2-12, as amended from time to time. SEC means the United States Securities and Exchange Commission. Undertaking means the City’s continuing disclosure undertaking, described in Paragraphs B through F below, hereunder accepted and entered into by the City for the purpose of compliance with the Rule. B.Annual Reports. The City shall file annually with the MSRB, (1) within six months after the end of each fiscal year of the City ending in or after 2026, financial information and operating data with respect to the City of the general type included in the final Official Statement authorized by Section 26 of this Ordinance, being the information described in Exhibit C hereto, and (2) if not provided as part of such financial information and operating data, audited financial statements of the City, when and if available. Any financial statements so to be provided shall be (i) prepared in accordance with the accounting principles described in Exhibit C hereto, or such other accounting principles as the City may be required to employ from time to time pursuant to state law or regulation, and (ii) audited, if the City commissions an audit of such financial statements and the audit is completed within the period during which they must be provided. If the audit of such financial statements is not complete within such period, then the City shall file unaudited financial statements within such period and audited financial statements for the applicable fiscal year to the MSRB, when and if the audit report on such financial statements becomes available. Under current Texas law, including, but not limited to, Chapter 103, as amended, Texas Local Government Code, the City must have its records and accounts audited annually and shall have an annual financial statement prepared based on the audit. The annual financial statement, including the auditor’s opinion on the statement, shall be filed in the office of the City Secretary within 180 days after the last day of the City’s fiscal year. Additionally, upon the filing of this financial statement and the annual audit, these documents are subject to the Texas Open Records Act, as amended, Texas Government Code, Chapter 552. If the City changes its fiscal year, it will file notice of such change (and of the date of the new fiscal year end) with the MSRB prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. C.Notice of Certain Events. The City shall file notice of any of the following events with respect to the Certificates to the MSRB in a timely manner and not more than 10 business days after occurrence of the event: (1)Principal and interest payment delinquencies; -40- (2)Non-payment related defaults, if material; (3)Unscheduled draws on debt service reserves reflecting financial difficulties; (4)Unscheduled draws on credit enhancements reflecting financial difficulties; (5)Substitution of credit or liquidity providers, or their failure to perform; (6)Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other material notices or determinations with respect to the tax status of the Certificates, or other material events affecting the tax status of the Certificates; (7)Modifications to rights of Holders of the Certificates, if material; (8)Certificate calls, if material, and tender offers; (9)Defeasances; (10)Release, substitution, or sale of property securing repayment of the Certificates, if material; (11)Rating changes; (12)Bankruptcy, insolvency, receivership, or similar event of the City, which shall occur as described below; (13)The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of its assets, other than in the ordinary course of business, the entry into of a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; (14)Appointment of a successor or additional paying agent/registrar or the change of name of a paying agent/registrar, if material; (15)Incurrence of a Financial Obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the City, any of which affect security holders, if material; and (16)Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the City, any of which reflect financial difficulties. For these purposes, (a) any event described in the immediately preceding paragraph (12) is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has -41- been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City, and (b) the City intends the words used in the immediately preceding paragraphs (15) and (16) and the definition of Financial Obligation in this Section to have the same meanings as when they are used in the Rule, as evidenced by SEC Release No. 34-83885, dated August 20, 2018. The City shall file notice with the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with this Section by the time required by this Section. D.Limitations, Disclaimers, and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the City remains an “obligated person” with respect to the Certificates within the meaning of the Rule, except that the City in any event will give notice of any deposit that causes the Certificates to be no longer Outstanding. The provisions of this Section are for the sole benefit of the holders and beneficial owners of the Certificates, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City’s financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Certificates at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITH OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the City in observing or performing its obligations under this Section shall constitute a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended by the City from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change -42- in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Certificates in the primary offering of the Certificates in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the Outstanding Certificates consent to such amendment or (b) a person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the holders and beneficial owners of the Certificates. The City may also repeal or amend the provisions of this Section if the SEC amends or repeals the applicable provisions of the Rule or any court of final jurisdiction enters judgment that such provisions of the Rule are invalid, and the City also may amend the provisions of this Section in its discretion in any other manner or circumstance, but in either case only if and to the extent that the provisions of this sentence would not have prevented an underwriter from lawfully purchasing or selling Certificates in the primary offering of the Certificates, giving effect to (a) such provisions as so amended and (b) any amendments or interpretations of the Rule. If the City so amends the provisions of this Section, the City shall include with any amended financial information or operating data next provided in accordance with this Section an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. E.Information Format – Incorporation by Reference. The City information required under this Section shall be filed with the MSRB through EMMA in such format and accompanied by such identifying information as may be specified from time to time thereby. Under the current rules of the MSRB, continuing disclosure documents submitted to EMMA must be in word-searchable portable document format (PDF) files that permit the document to be saved, viewed, printed, and retransmitted by electronic means and the series of obligations to which such continuing disclosure documents relate must be identified by CUSIP number or numbers. Financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document) available to the public through EMMA or filed with the SEC. F.General Policies and Procedures Concerning Compliance with the Rule. Because the issuance of the Certificates is subject to the provisions of the Rule and because the potential “underwriters” in a negotiated sale of the Certificates or the initial purchasers in a competitive sale of the Certificates may be subject to MSRB rules and regulations with respect to such sale (including certain due diligence and suitability requirements, among others), the City hereby adopts the General Policies and Procedures Concerning Compliance with the Rule (the “Policies and Procedures”), attached hereto as Exhibit E, with which the City shall follow to assure compliance with the Undertaking. The City has developed these Policies and Procedures for the purpose of meeting its requirements of the Undertaking and, in connection therewith, has sought the guidance from its internal staff charged with administering the City’s financial affairs, its -43- municipal or financial advisors, its legal counsel (including its Bond Counsel), and its independent accountants (to the extent determined to be necessary or advisable). The Policies and Procedures can be amended at the sole discretion of the City and any such amendment will not be deemed to be an amendment to the Undertaking. Each Authorized Official is hereby authorized to amend the Policies and Procedures as a result of a change in law, a future issuance of indebtedness subject to the Rule, or another purpose determined by the Authorized Official to be necessary or desirable for or with respect to future compliance with the Undertaking. SECTION 45. Book-Entry Only System. The Certificates shall initially be registered so as to participate in a securities depository system (the DTC System) with the Depository Trust Company, New York, New York, or any successor entity thereto (DTC), as set forth herein. Each Stated Maturity of the Certificates shall be issued (following cancellation of the Initial Certificates described in Section 7) in the form of a single definitive Certificate. Upon issuance, the ownership of each such Certificate shall be registered in the name of Cede & Co., as the nominee of DTC, and all of the Outstanding Certificates shall be registered in the name of Cede & Co., as the nominee of DTC. The City and the Paying Agent/Registrar are authorized to execute, deliver, and take the actions set forth in such letters to or agreements with DTC as shall be necessary to effectuate the DTC System, including the Letter of Representations attached hereto as Exhibit D (the Representation Letter). With respect to the Certificates registered in the name of Cede & Co., as nominee of DTC, the City and the Paying Agent/Registrar shall have no responsibility or obligation to any broker-dealer, bank, or other financial institution for which DTC holds the Certificates from time to time as securities depository (a Depository Participant) or to any person on behalf of whom such a Depository Participant holds an interest in the Certificates (an Indirect Participant). Without limiting the immediately preceding sentence, the City and the Paying Agent/Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co., or any Depository Participant with respect to any ownership interest in the Certificates, (ii) the delivery to any Depository Participant or any other person, other than a registered owner of the Certificates, as shown on the Security Register, of any notice with respect to the Certificates, including any notice of redemption, or (iii) the delivery to any Depository Participant or any Indirect Participant or any other Person, other than a Holder of a Certificate, of any amount with respect to principal of, premium, if any, or interest on the Certificates. While in the DTC System, no person other than Cede & Co., or any successor thereto, as nominee for DTC, shall receive a bond certificate evidencing the obligation of the City to make payments of principal, premium, if any, and interest pursuant to this Ordinance. Upon delivery by DTC to the Paying Agent/Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this Ordinance with respect to interest checks or drafts being mailed to the Holder, the word “Cede & Co.” in this Ordinance shall refer to such new nominee of DTC. In the event that (a) the City determines that DTC is incapable of discharging its responsibilities described herein and in the Representation Letter, (b) the Representation Letter shall be terminated for any reason, or (c) DTC or the City determines that it is in the best interest of the beneficial owners of the Certificates that they be able to obtain certificated Certificates, the City shall notify the Paying Agent/Registrar, DTC, and the Depository Participants of the -44- availability within a reasonable period of time through DTC of bond certificates, and the Certificates shall no longer be restricted to being registered in the name of Cede & Co., as nominee of DTC. At that time, the City may determine that the Certificates shall be registered in the name of and deposited with a successor depository operating a securities depository system, as may be acceptable to the City, or such depository’s agent or designee, and if the City and the Paying Agent/Registrar do not select such alternate securities depository system then the Certificates may be registered in whatever name or names the Holders of Certificates transferring or exchanging the Certificates shall designate, in accordance with the provisions hereof. Notwithstanding any other provision of this Ordinance to the contrary, so long as any Certificate is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on such Certificate and all notices with respect to such Certificate shall be made and given, respectively, in the manner provided in the Representation Letter. SECTION 46. Further Procedures. The officers and employees of the City are hereby authorized, empowered and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge and deliver in the name and under the corporate seal and on behalf of the City all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Ordinance, the initial sale and delivery of the Certificates, the Purchase Contract, the Paying Agent/Registrar Agreement, and the Official Statement. In addition, prior to the initial delivery of the Certificates, any Authorized Official and Bond Counsel are hereby authorized and directed to approve any technical changes or corrections to this Ordinance or to any of the instruments authorized and approved by this Ordinance and as described in the Official Statement necessary in order to (i) correct any ambiguity or mistake or properly or more completely document the transactions contemplated and approved by this Ordinance, (ii) obtain a rating from any of the national bond rating agencies, or (iii) obtain the approval of the Certificates by the Texas Attorney General’s office. In case any officer of the City whose signature shall appear on any certificate shall cease to be such officer before the delivery of such certificate, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. SECTION 47. Contracts with Financial Advisor. The City Council authorizes any Authorized Official, or their designees, to take all actions necessary to execute any necessary financial advisory contracts with SAMCO Capital Markets, Inc., as the financial advisor to the City (the Financial Advisor). The City understands that under applicable federal securities laws and regulations that the City must have a contractual arrangement with its Financial Advisor relating to the sale, issuance, and delivery of the Certificates. SECTION 48. City’s Consent to Provide Information and Documentation to the Texas MAC. The Municipal Advisory Council of Texas (the Texas MAC), a non-profit membership corporation organized exclusively for non-profit purposes described in section 501(c)(6) of the Internal Revenue Code and which serves as a comprehensive financial information repository regarding municipal debt issuers in Texas, requires provision of written documentation regarding the issuance of municipal debt by the issuers thereof. In support of the purpose of the Texas MAC and in compliance with applicable law, the City hereby consents to and authorizes any Authorized Official, Bond Counsel to the City, and/or Financial Advisor to the City to provide to the Texas -45- MAC information and documentation requested by the Texas MAC relating to the Certificates; provided, however, that no such information and documentation shall be provided prior to the Closing Date. This consent and authorization relates only to information and documentation that is a part of the public record concerning the issuance of the Certificates. SECTION 49. Effective Date. Pursuant to the provisions of Section 1201.028, as amended, Texas Government Code, this Ordinance shall be effective immediately upon adoption, notwithstanding any provision in the City’s Home Rule Charter to the contrary concerning a multiple reading requirement for the adoption of ordinances. [The remainder of this page intentionally left blank.] Signature page to the Ordinance S-1 PASSED, APPROVED, AND ADOPTED on the _____day of August, 2026. CITY OF SCHERTZ, TEXAS ____________________________________ Ralph Rodriguez, Mayor ATTEST: _______________________________________ Sheila Edmondson, City Secretary Index-1 304103688.4 INDEX TO EXHIBITS Exhibit A Paying Agent/Registrar Agreement Exhibit B Purchase Contract Exhibit C Description of Annual Financial Information Exhibit D DTC Letter of Representations Exhibit E General Policies and Procedures Concerning Compliance with the Rule A-1 EXHIBIT A PAYING AGENT/REGISTRAR AGREEMENT See Tab No. __ B-1 EXHIBIT B PURCHASE CONTRACT See Tab No. __ C-1 EXHIBIT C DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 44 of this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the headings of the Official Statement referred to) below: (1)The City’s audited financial statements for the most recently concluded fiscal year or to the extent these audited financial statements are not available, the portions of the unaudited financial statements of the City appended to the Official Statement as Appendix D, but for the most recently concluded fiscal year. (2)The information in the Official Statement under Table 1 of the Official Statement and Tables 1 through 18 of Appendix A to the Official Statement. Accounting Principles The accounting principles referred to in such Section are generally accepted accounting principles for governmental units as prescribed by the Government Accounting Standards Board from time to time. D-1 EXHIBIT D DTC LETTER OF REPRESENTATIONS See Tab No. __ E-1 EXHIBIT E GENERAL POLICIES AND PROCEDURES CONCERNING COMPLIANCE WITH THE RULE I.Capitalized terms used in this Exhibit have the meanings ascribed thereto in Section 44 of the Ordinance. “Certificates” refer to the Certificates that are the subject of the Ordinance to which this Exhibit is attached. II.As a capital markets participant, the City is aware of its continuing disclosure requirements and obligations existing under the Rule prior to February 27, 2019, the effective date of the most recent amendment to the Rule (the “Effective Date”), and has implemented and maintained internal policies, processes, and procedures to ensure compliance therewith. Adherence to these internal policies, processes, and procedures has enabled underwriters in non-exempt negotiated sales and initial purchasers in non-exempt competitive sales to comply with their obligations arising under various MSRB rules and regulations concerning due diligence and findings of suitability, among other matters, regarding the City’s compliance with the Rule. III.The City is aware that the Rule was amended as of the Effective Date (the Rule Amendment) and has accommodated this amendment by adding subparagraphs (15) and (16) to Section 44C of the Ordinance, which provisions are a part of the Undertaking. IV.The City is aware that “participating underwriters” (as such term is defined in the Rule) of the Certificates must make inquiry and reasonably believe that the City is likely to comply with the Undertaking and that the standards for determining compliance have increased over time as a result of, among others, the United States Securities and Exchange Commission’s Municipalities Continuing Disclosure Cooperation Initiative and regulatory commentary relating to the effectiveness of the Rule Amendment. V.The City now establishes the following general policies and procedures (the “Policies and Procedures”) for satisfying its obligations pursuant to the Undertaking, which policies and procedures have been developed based on the City’s informal policies, procedures, and processes utilized prior to the Effective Date for compliance with the City’s obligations under the Rule, the advice from and discussions with the City’s internal senior staff (including staff charged with administering the City’s financial affairs), its municipal or financial advisors, its legal counsel (including Bond Counsel), and its independent accountants, to the extent determined to be necessary or advisable (collectively, the “Compliance Team”): 1.the City Manager of the City (the “Compliance Officer”) shall be responsible for satisfying the City’s obligations pursuant to the Undertaking through adherence to these Policies and Procedures; 2.the Compliance Officer shall establish reminder or “tickler” systems to identify and timely report to the MSRB, in the format thereby prescribed from time to time, the City’s information of the type described in Section 44B of the Ordinance; 3.the Compliance Officer shall promptly determine the occurrence of any of the events described in Section 44C of the Ordinance; E-2 4.the Compliance Officer shall work with external consultants of the City, as and to the extent necessary, to timely prepare and file with the MSRB the annual information of the City and notice of the occurrence of any of the events referenced in Clauses 2 and 3 above, respectively, the foregoing being required to satisfy the terms of the Undertaking; 5.the Compliance Officer shall establish a system for identifying and monitoring any Financial Obligations, whether now existing or hereafter entered into by the City, and (upon identification) determining if such Financial Obligation has the potential to materially impact the security or source of repayment of the Certificates; 6.upon identification of any Financial Obligation meeting the materiality standard identified in Clause 5 above, the Compliance Officer shall establish a process for identifying and monitoring any City agreement to covenants, events of default, remedies, priority rights, or other similar terms under such Financial Obligation; 7.the Compliance Officer shall establish a process for identifying the occurrence of any default, event of acceleration, termination event, modification of terms, or other similar events under the terms of any Financial Obligation, the occurrence of any of which reflect financial difficulties of the City; and 8.the Compliance Officer shall annually review these Policies and Procedures with the remainder of the Compliance Team, make any modifications on an internal document retained by the Compliance Officer and available to any “participating underwriter” (as defined in the Rule), if requested, and on the basis of this annual review (to the extent determined to be necessary or desirable), seek additional training for herself or himself, as well as other members of the City’s internal staff identified by the Compliance Officer to assist with the City’s satisfaction of the terms and provisions of the Undertaking. Agenda No. 7. CITY COUNCIL MEMORANDUM City Council Meeting:August 4, 2026 Department:Planning & Community Development Subject: Ordinance 26-S-017 - Conduct a public hearing and consider a request to rezone approximately 0.26 acres of land from General Business District (GB) to Main Street Mixed-Use District (MSMU), generally located approximately 50-feet southwest of the intersection of Main Street and Lindbergh Ave, specifically known as Guadalupe County Property Identification Number 67454, City of Schertz, Texas (Senior Planner Daisy Marquez) BACKGROUND The applicant is requesting to rezone approximately 0.26 acres of land from General Business District (GB) to Main Street Mixed-Use District (MSMU). The subject property is currently not platted. The application wishes to use the flexibility of the Main-Street Mixed Use District (MSMU) that is permitted. On July 9, 2026, fifteen (15) public hearing notices were mailed to the surrounding property owners within a 200-foot boundary of the subject property. At the time of the staff report, zero (0) responses in favor, zero (0) responses neutral, and zero (0) responses in opposition were received. A public hearing notice was also sent to the school district. A public hearing notice was published in the “San Antonio Express” on July 15, 2026. A notice sign was placed on the property. The Planning and Zoning Commission held a public hearing for the item on July 22, 2026. Subject Property: Zoning Land Use Existing General Business District (GB)Undeveloped Proposed Main Street Mixed-Use District (MSMU)Parking Lot Adjacent Properties: Zoning Land Use North Right-of-Way Main Street South Railroad Union Pacific East Main Street Mixed-Use (MSMU)Restaurant West General Business District (GB)Automobile Repair and Service, Major Zoning: Dimensional and Developmental Standards Minimum Lot Size and Dimensions Minimum Yard Setbacks Miscellaneous Lot Requirements Code Zoning District Area Sq.Ft. Width (ft) Depth (ft) Front (ft) Rear (ft)Side (ft) Max Height (ft) Max Impervious Coverage Table 21.5.7.B. Non-Residential Zoning District Existing GB General Business 10,000 100 100 25 0 adj to non-res 25 adj to residential 0 adj to non-res 25 adj to res 120 80% Table 21.5.7.A. Residential Zoning District Proposed MSMU Main Street Mixed-Use 5,000 50 100 10 5 10 35 80% Main Street Mixed-Use District (MSMU) Site Design Requirements: Main Street Mixed-Use District (MSMU) was established to create a flexible zoning district that allowed the original and smaller lots of Schertz within the Main Street Corridor flexibility due to the characteristics of the lots. The minimum off-street parking spaces required for the Main Street Mixed-Use District (MSMU) are 2 parking spaces. As per UDC Article 9, Main Street Mixed-Use District (MSMU) is also allowed additional flexibility in the following site design requirement subsections: 21.9.7.D.9. The 20-foot landscape buffer with one tree every 20 linear feet adjacent to Right-of-Way is not required for Main Street Mixed-Use District (MSMU) properties. 21.9.7.D.13. Main Street Mixed-Use District (MSMU) zoned properties are exempt from the planting island requirements. 21.9.7.D.14. Main Street Mixed-Use District (MSMU) zoned properties adjacent to residential uses or zoning is only required to provide a 5-foot landscape buffer and are not required to provide an 8-foot masonry wall. GOAL The applicant is requesting to rezone approximately 0.26 acres of land from General Business District (GB) to Main Street Mixed-Use District (MSMU). COMMUNITY BENEFIT It is the City’s desire to promote safe, orderly, efficient development and ensure compliance with the City’s vision of future growth. SUMMARY OF RECOMMENDED ACTION When considering zone changes, staff looks to the criteria listed in UDC Section 21.5.4.D. The criteria are listed below: 1. Whether the proposed zoning change implements the policies of the adopted Comprehensive Land Plan, or any other applicable adopted plans. The proposed zone change implements the policies of the adopted Comprehensive Land Plan. The subject property is designated as Main Street on the Future Land Use Map. The Main Street Future Land Use Designation is intended for residential, commercial, cultural, and entertainment uses to create a dynamic urban core. The property is also part of the Main Street Corridor that is eligible for Main Street Grants. The proposed zone change to Main Street Mixed-Use District (MSMU) implements the Future Land Use Map designation of Main Street. 2. Whether the proposed zoning change promotes the health, safety, and general welfare of the City. As part of promoting health, safety, and welfare, the City should encourage development compatible with surrounding uses, utilizing standards and transitional uses to alleviate negative impacts. Any new development will be required to meet the site design requirements listed in Article 9 of the Unified Development Code. Per the letter of intent, the applicant wishes to use the lot to revitalize Main Street. As part of the zone change, the Engineering Department provided a traffic impact evaluation and concluded that there would be no adverse impact to the City's transportation system due to the zone change request. The intent of the proposed zone change and no change on impact to the City's transportation system promotes the health, safety, and general welfare of the community. 3. Whether the uses permitted by the proposed change will be consistent and appropriate with existing uses in the immediate area; The proposed Main Street Mixed-Use District (MSMU) is intended for properties along Main Street and in proximity to Main Street, and permits single-family, multi-family, and low-intensity commercial uses. Along Main Street, there are existing commercial uses which include restaurants, professional offices, parking lots, and retail. The applicant intends to revitalize the lot in compliance with the Main Street Mixed-Use (MSMU) permitted uses and site design requirements, which are consistent with and appropriate with the existing uses in the immediate area. 4. Whether other factors are deemed relevant and important in the consideration of the amendment. Staff has ensured all UDC requirements have been met for the proposed zone change application. The City of Schertz Fire, EMS, and Police Departments have reviewed the proposed zone change request and do not provide objections. The Planning and Zoning Commission held a public hearing for the item on July 22, 2026. RECOMMENDATION Staff Recommendation: Staff recommends approval of Ordinance 26-S-017 due to the location of the subject property on Main Street and compatibility of the proposed zoning district with the Comprehensive Land Use Plan Future Land Use Map. Planning and Zoning Commission Recommendation: The Planning and Zoning Commission held a public hearing for the item on July 22, 2026, and made a recommendation of approval to City Council. Attachments Ordinance 26-S-017 With Attachments Aerial Exhibit 200-Foot Notification Map Zone Change Exhibit City Council Presentation Slides SCUC ISD Demographic Report SCUC ISD 10-Year Forecasting ORDINANCE NO. 26-S-017 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, TO REZONE APPROXIMATELY 0.26 ACRES OF LAND FROM GENERAL BUSINESS DISTRICT (GB) TO MAIN STREET MIXED-USE DISTRICT (MSMU), GENERALLY LOCATED APPROXIMATELY 50- FEET SOUTHWEST OF THE INTERSECTION OF MAIN STREET AND LINDBERGH AVENUE, SPECIFICALLY KNOWN AS GUADALUPE COUNTY PROPERTY IDENTIFICATION NUMBER 67454, CITY OF SCHERTZ, TEXAS. WHEREAS, an application to rezone approximately 0.26 acres of land from General Business District (GB) to Main Street Mixed Use District (MSMU), generally located approximately 50-feet southwest of the intersection of Main Street and Lindbergh Avenue, specifically known as Guadalupe County Property Identification Number 67454, more specifically described in Exhibit A attached herein (herein, the “Property”) has been filed with the City; and WHEREAS, the City’s Unified Development Code Section 21.5.4.D. provides for certain criteria to be considered by the Planning and Zoning Commission in making recommendations to City Council and by City Council in considering final action on a requested zoning (the “Criteria”); and WHEREAS, on July 22, 2026, the Planning and Zoning Commission conducted a public hearing and, after considering the Criteria, made a recommendation to City Council to approve the requested zone change with a unanimous vote; and WHEREAS, on August 4, 2026, the City Council conducted a public hearing and, after considering the Criteria and recommendation by the Planning and Zoning Commission, determined that the requested zoning be approved as provided for herein. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The Property, as shown and more particularly described in the attached Exhibit A, approximately 0.26 acres of land is hereby zoned Main Street Mixed-Use District (MSMU). Section 2. The Official Zoning Map of the City of Schertz, described and referred to in Article 2 of the Unified Development Code, shall be revised to reflect the above amendment. Section 3. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part of the judgment and findings of the Council. Section 4. All ordinances and codes, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as t o the matters resolved herein. Section 5. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 6. If any provision of this Ordinance or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City hereby declares that this Ordinance would have been enacted without such invalid provision. Section 7. It is officially found, determined, and declared that the meeting at which this Ordinance 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, includ ing this Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code. Section 8. This Ordinance shall be effective upon the date of final adoption hereof and any publication required by law. Section 9. This Ordinance shall be cumulative of all other ordinances of the City of Schertz, and this Ordinance shall not operate to repeal or affect any other ordinances of the City of Schertz except insofar as the provisions thereof might be inconsistent or in conflict with the provisions of this Ordinance, in which event such conflicting provisions, if any, are hereby repealed. PASSED, APPROVED and ADOPTED on this ____day of ________ 2026. CITY OF SCHERTZ, TEXAS _____________________________ Ralph Rodriguez, Mayor ATTEST: Sheila Edmondson, City Secretary Exhibit “A” Zoning Exhibit MS M U GB GB GB GB MS M U LINDB E R G H A V E M A I N S T 1ST S T E X C H A N G E A V E W U E S T S T F M 7 8 GB GB GB GB MS M U GB LINDB E R G H A V E M A I N S T 1ST S T E X C H A N G E A V E W U E S T S T F M 7 8 La s t u p d a t e : J u l y 1 , 2 0 2 6 Ci t y o f S c h e r t z , G I S S p e c i a l i s t : B i l l G a r d n e r , gi s @ s c h e r t z . c o m ( 2 1 0 ) 6 1 9 - 1 1 8 5 *T h e C i t y o f S c h e r t z p r o v i d e s t h i s G e o g r a p h i c I n f o r m a t i o n S y s t e m p r o d u c t " a s i s " w i t h o u t a n y e x p r e s s o r i m p l i e d w a r r a n t y o f a n y k i n d i n c l u d i n g b u t n o t li m i t e d t o t h e i m p l i e d w a r r a n t i e s o f m e r c h a n t a b i l i t y a n d f i t n e s s f o r a p a r t i c u l a r p u r p o s e . I n n o e v e n t s h a l l T h e C i t y o f S c h e r t z b e l i a b l e f o r a n y s p e c i a l , in d i r e c t , o r c o n s e q u e n t i a l d a m a g e s o r a n y d a m a g e s w h a t s o e v e r a r i s i n g o u t o f o r i n c o n n e c t i o n w i t h t h e u s e o f o r p e r f o r m a n c e o f t h e s e m a t e r i a l s . In f o r m a t i o n p u b l i s h e d i n t h i s p r o d u c t c o u l d i n c l u d e t e c h n i c a l i n a c c u r a c i e s o r t y p o g r a p h i c a l e r r o r s . P e r i o d i c a l c h a n g e s m a y b e a d d e d t o t h e i n f o r m a t i o n he r e i n . T h e C i t y o f S c h e r t z m a y m a k e i m p r o v e m e n t s a n d / o r c h a n g e s i n t h e p r o d u c t ( s ) d e s c r i b e d h e r e i n a t a n y t i m e . * Pr o p e r t y I D 6 7 4 5 4 CU R R E N T (D V L ) D e v e l o p m e n t A g r e e m e n t ( D e l a y e d A n n e x a t i o n ) (M - 2 ) M a n u f a c t u r i n g ( H e a v y ) (M - 1 ) M a n u f a c t u r i n g ( L i g h t ) (M S M U - N D ) M a i n S t r e e t M i x e d U s e N e w D e v e l o p m e n t (M S M U ) M a i n S t r e e t M i x e d U s e (O P ) O f f i c e a n d P r o f e s s i o n a l (N S ) N e i g h b o r h o o d S e r v i c e s (G B - 2 ) G e n e r a l B u s i n e s s I I (G B ) G e n e r a l B u s i n e s s (M H P ) M a n u f a c t u r e d H o m e P a r k s (M H S ) M a n u f a c t u r e d H o m e S u b d i v i s i o n (T H ) T o w n h o m e (G H ) G a r d e n H o m e / S i n g l e - F a m i l y R e s i d e n t i a l ( Z e r o L o t L i n e ) (A D ) A g r i c u l t u r a l D i s t r i c t (R - 7 ) S i n g l e - f a m i l y R e s i d e n t i a l (R - 6 ) S i n g l e - f a m i l y R e s i d e n t i a l (R - 4 ) A p a r t m e n t / M u l t i - F a m i l y R e s i d e n t i a l (R - 3 ) T w o - F a m i l y R e s i d e n t i a l (R - 2 ) S i n g l e - F a m i l y R e s i d e n t i a l (R - 1 ) S i n g l e - F a m i l y R e s i d e n t i a l (R - A ) S i n g l e - f a m i l y R e s i d e n t i a l / A g r i c u l t u r a l (P U B ) P u b l i c U s e (P D D ) P l a n n e d D e v e l o p m e n t (P R E ) P r e - D e v e l o p m e n t Cl a s s i f i c a t i o n Pr o p o s e d Zo n i n g C h a n g e PR O P O S E D µ 0 50 10 0 25 Fe e t Proposed Zone Change Property ID 67454 PLZC20260166 Planned Commercial Collector A Commercial Collector A Planned Commercial Collector B Planned Residential Collector Residential Collector Planned Secondary Rural Arterial Secondary Rural Arterial Planned Secondary Arterial Secondary Arterial Planned Principal Arterial Principal Arterial Freeway Minor Roads Major Roads Highways Project Boundary ETJ Schertz Municipal Boundary County Boundaries Unknown 36" 30" 24" 20" 18" 16" 12" 10" 8" 6" 4" 3" 2" 1" Private Pressure Neighboring Gravity Schertz Pressure Schertz Gravity Sewer Main Schertz Treatment Plant3Q CCMA Treatment Plant3Q Schertz Lift Station[Ú Private Lift Station[Ú CCMA Lift Station[Ú Manholes!P HydrantU U U U U U U UU U U U U U U !P !P !P !P !P !P !P !P 67657 RANDOLPH LODGE #1268 67423 MARTINEZ ALFONSO R 67718 SOUTHERN PACIFIC 32861 WALTEL LLC 32859 WALTEL LLC 67753 LOPEZ DANY EDUARDO DBA MELANIES CAFE 40842 VIDAL RANDAL J & MELISSA K 67603 LUCAS FRANK M 67621 HUERTA JOE & FRANCES HUERTA & JOLEAN HUERTA 67500 6K PROPERTIES LLC 137487 KAPADIA JAGDISH 67445 LNG PROPERTIES INC 67647 BLCH1 LLC 67530 TRES ANGELES LLC 228113 CITY OF SCHERTZ 67454 MARTINEZ ALFONSO R 67719 SOUTHERN PACIFIC 67684 426 MAIN ST LLC 67704 JOHN GANNON INC 67771 PENTECOSTAL LIFE CHURCH INC 67577 HUBER LEE & DICK PERRA 67562 H P PRINTING INC 67486 BURCH ROBERT R 67679 BURCH ROBERT R 67443 CITY OF SCHERTZ 67549 SCHERTZ BANK & TRUST 67564 CITY OF SCHERTZ Union P a F i I i F : / : / : / : / :/ : / : / : / :/ :/ : / :/ : / : / : / :/ : / :/ 9LWUL I L H G & O D \ 3 9 & 6 ' 5 9LWUL I L H G & O D \ 9 L W U L I L H G & O D \ 9LWU L I L H G & O D \ FM 78 1 S T S T E FM 1 5 1 8 N MAIN S T /(( 3 U 7 U 7 0$, 1 U 7 )0 ( $ 9,$ 7 ,Q1 %/9' 3 U 7 U 7 / , 1 ' % ( 5 * + $ 9 ( :8(U 7 U 7 (;&+ $ 1 * ( $ 9 ( Microsoft, Vantor 0 50 10025 Feetµ 507 MAIN S T (676 5 7 ) 509 MAIN S T (675 4 9 ) FM 78 (6756 4 ) MA I N S T (6 7 4 5 4 ) 43 2 MA I N S T (6 7 4 2 3 ) 40 3 MA I N S T (4 0 8 4 2 ) 42 6 MA I N S T (6 7 6 8 4 ) 50 6 MA I N S T (3 2 8 5 9 ) 50 2 MA I N S T (6 7 7 5 3 ) 40 9 MA I N S T (6 7 6 2 1 ) 41 5 MA I N S T (1 3 7 4 8 7 ) 11 0 FM 7 8 (6 7 4 8 6 ) 20 6 FM 7 8 (6 7 5 3 0 ) 20 4 F M 7 8 (2 2 8 1 1 3 ) 41 7 MA I N S T (6 7 5 0 0 ) 8 Q i o Q 3 D c i f i c 5 D i O r o D G 8 Q i o Q 3 D c i f i c 5 D i O r o D G L E E F M 7 8 E AV I A T I O N B L V D M A I N S T 1ST S T LINDB E R G H A V E E X C H A N G E A V E W U E S T S T La s t u p d a t e : J u n e 3 0 , 2 0 2 6 Ci t y o f S c h e r t z , G I S S p e c i a l i s t : B i l l G a r d n e r , g i s @ s c h e r t z . c o m ( 2 1 0 ) 6 1 9 - 1 1 8 5 *T h e C i t y o f S c h e r t z p r o v i d e s t h i s G e o g r a p h i c I n f o r m a t i o n S y s t e m p r o d u c t " a s i s " w i t h o u t a n y e x p r e s s o r i m p l i e d w a r r a n t y o f a n y k i n d i n c l u d i n g bu t n o t l i m i t e d t o t h e i m p l i e d w a r r a n t i e s o f m e r c h a n t a b i l i t y a n d f i t n e s s f o r a p a r t i c u l a r p u r p o s e . I n n o e v e n t s h a l l T h e C i t y o f S c h e r t z b e l i a b l e fo r a n y s p e c i a l , i n d i r e c t , o r c o n s e q u e n t i a l d a m a g e s o r a n y d a m a g e s w h a t s o e v e r a r i s i n g o u t o f o r i n c o n n e c t i o n w i t h t h e u s e o f o r p e r f o r m a n c e o f th e s e m a t e r i a l s . I n f o r m a t i o n p u b l i s h e d i n t h i s p r o d u c t c o u l d i n c l u d e t e c h n i c a l i n a c c u r a c i e s o r t y p o g r a p h i c a l e r r o r s . P e r i o d i c a l c h a n g e s m a y b e ad d e d t o t h e i n f o r m a t i o n h e r e i n . T h e C i t y o f S c h e r t z m a y m a k e i m p r o v e m e n t s a n d / o r c h a n g e s i n t h e p r o d u c t ( s ) d e s c r i b e d h e r e i n a t a n y t i m e . * Ci t y o f S c h e r t z Pr o p o s e d Z o n e C h a n g e Pr o p e r t y I D 6 7 4 5 4 Pa r c e l s 20 0 ' B u f f e r Pr o j e c t B o u n d a r y q 0 10 0 20 0 50 Fe e t MSMU GB GB GB GB MSMU L I N D B E R G H A V E MAIN S T 1 S T S T EXCH A N G E A V E WUEST S T FM 78 GB GB GB GB MSMU GB L I N D B E R G H A V E MAIN S T 1 S T S T EXCH A N G E A V E WUEST S T FM 78 Last update: July 1, 2026 City of Schertz, GIS Specialist: Bill Gardner, gis@schertz.com (210) 619-1185 *The City of Schertz provides this Geographic Information System product "as is" without any express or implied warranty of any kind including but not limited to the implied warranties of merchantability and fitness for a particular purpose. In no event shall The City of Schertz be liable for any special, indirect, or consequential damages or any damages whatsoever arising out of or in connection with the use of or performance of these materials. Information published in this product could include technical inaccuracies or typographical errors. Periodical changes may be added to the information herein. The City of Schertz may make improvements and/or changes in the product(s) described herein at any time.* Property ID 67454 CURRENT (DVL) Development Agreement (Delayed Annexation) (M-2) Manufacturing (Heavy) (M-1) Manufacturing (Light) (MSMU-ND) Main Street Mixed Use New Development (MSMU) Main Street Mixed Use (OP) Office and Professional (NS) Neighborhood Services (GB-2) General Business II (GB) General Business (MHP) Manufactured Home Parks (MHS) Manufactured Home Subdivision (TH) Townhome (GH) Garden Home/Single-Family Residential (Zero Lot Line) (AD) Agricultural District (R-7) Single-family Residential (R-6) Single-family Residential (R-4) Apartment/Multi-Family Residential (R-3) Two-Family Residential (R-2) Single-Family Residential (R-1) Single-Family Residential (R-A) Single-family Residential/Agricultural (PUB) Public Use (PDD) Planned Development (PRE) Pre-Development Classification Proposed Zoning Change PROPOSED µ 0 50 10025 Feet Ord. 26-S-017 Daisy Marquez| Senior Planner 0.26 acre zone change to MSMU 2 •0.26 acres •Not platted Zoning Use Subject Property General Business District (GB) Undeveloped North Right of Way Main St South Railroad Union Pacific East Main Street Mixed- Use (MSMU) Melanies West General Business District (GB) Automobile Repair and Service 3 •15 public notices sent on 07.9.2026 •Responses •(0) in Favor •(0) neutral to •(0) in opposition •Published in the “San Antonio Express” on July 15, 2026 •One sign placed on the property •July 22, 2026 - P&Z Commission Meeting 4 Dimensional Requirements 21.5.7 & Permitted Uses 21.5.8 Existing Proposed General Business District (GB)Main Street Mixed-Use (MSMU) Permitted Uses *Not a comprehensive List* Appliances, Furniture and home furnishing store; building material and hardware sales; car wash. Automated; Commercial Amusement, Indoor Art Gallery, Book Store, Bank, Beauty Salon, Farmer’s Market, Florist, Furniture Sale, Health/ Fitness Center, Tavern Area Square Feet ; Width and Depth 10,000 sqft; 100 ft x100 ft 5,000 sqft; 50 ft x100 ft Setbacks Front: 20’ Side: 0’ adj to non-res/ 25’ adj to res Rear:0’ adj to non-res/ 25’ adj to res Front: 10 Side: 5 Rear: 10 Maximum Height 120 ft 35’ Max. Impervious Coverage 80%80% 5 •Flexible zoning district •Minimum 2 Parking Spaces •21.9.7.D.9- ROW screening not required •20-foot landscape buffer with 1 tree every 20 linear feet •21.9.7.D.13- exempt from planting island requirements •21.9.7.D.14- adjacent to residential requires only a 5 -foot landscape buffer Main Street Mixed -Use District (MSMU) 6 UDC Section 21.5.4.D Criteria for Approval 1. Whether the proposed zoning change implements the policies of the adopted Comprehensive Land Plan or any other applicable adopted plans. •Future Land Use Plan: Main Street •Residential, commercial, cultural, and entertainment spaces to create a dynamic core •Main Street Corridor •Implements the Comp. Plan 7 UDC Section 21.5.4.D Criteria for Approval 2. Whether the proposed zoning change promotes the health, safety, and general welfare of the City. •Any new development is required to meet the site design requirements and be compliant with the UDC and its requirements •Applicant wishes to revitalize Main Street •TIA Summary •No adverse impact to the City Transportation System 8 UDC Section 21.5.4.D Criteria for Approval 3. Whether the uses permitted by the proposed change will be consistent and appropriate with existing uses in the immediate area; •MSMU is intended for properties on Main Street, in proximity to Main Street, and within the Main Street Comprehensive Land Use Area •Existing uses: •Commercial, restaurant, retail and personal services 9 UDC Section 21.5.4.D Criteria for Approval 4. Whether other factors are deemed relevant and important in the consideration of the amendment •All UDC requirements have been met •Schertz Fire, EMS, and Police Departments have reviewed the proposed zone change without objections •Planning and Zoning Commission held a public hearing for the item on July 22, 2026 10 Staff Recommendation Staff recommends approval of Ord. 26-S-017 due to the location of the subject property on Main Street and compatibility of the proposed zoning district with the Comprehensive Land Use Plan Future Land Use Plan. Planning and Zoning Commission The Planning and Zoning Commission held a public hearing for the item on July 22, 2026 and made a recommendation of approval to City Council with a 6 -0 vote. 4Q24 Demographic Report 2.9 3.1 3.1 3.5 3.5 3.3 3.3 3.4 3.7 3.8 01234 Guadalupe Co. Comal Co. San Antonio MSA Texas US Unemployment Rate, Year Over Year Dec‐24 Dec‐23 2 Local Economic Conditions 3 12.6 3.4 3.5 3.7 0 2 4 6 8 10 12 14 Se p ‐19 No v ‐19 Ja n ‐20 Ma r ‐20 Ma y ‐20 Ju l ‐20 Se p ‐20 No v ‐20 Ja n ‐21 Ma r ‐21 Ma y ‐21 Ju l ‐21 Se p ‐21 No v ‐21 Ja n ‐22 Ma r ‐22 Ma y ‐22 Ju l ‐22 Se p ‐22 No v ‐22 Ja n ‐23 Ma r ‐23 Ma y ‐23 Ju l ‐23 Se p ‐23 No v ‐23 Ja n ‐24 Ma r ‐24 Ma y ‐24 Ju l ‐24 Se p ‐24 No v ‐24 Unemployment Rate, Sept 2019 –Dec 2024 San Antonio MSA Texas 3 Local Economic Conditions San Antonio International Airport •Broke ground on third terminal at end of 2024 •Estimated total cost = $2.5 billion •Third terminal will anchor the expansion & improvement project housing as many as 17 new gates spanning approx. 850,000 sq. ft. •Will include concessions and lounge areas while housing new Federal Inspection Station to accommodate expanded international air service •Expected to generate $3.2 billion in revenue for the city over 15 years •New ground loading facility also added at Terminal A including new passenger gates and overnight aircraft parking •The third terminal is scheduled for completion in 2028 4 Housing Activity by MSA © 2022 Zonda 18,503 19,046 0 5,000 10,000 15,000 20,000 25,000 2014Q4 2015Q4 2016Q4 2017Q4 2018Q4 2019Q4 2020Q4 2021Q4 2022Q4 2023Q4 2024Q4 Annual Housing Starts vs. Annual Closings Annual Housing Starts Annual Closings Source: Zonda San Antonio New Home Starts & Closings Key Trends Starts: +26% YOY / +6% QOQ Closings: +4% YOY / +6% QOQ Closings Exceed Starts by 543 Homes 6 SCUC ISD Housing Market Analysis Average New vs. Existing Home Sale Price, 2013 - 2024 • The average new home sale price in SCUC ISD has risen 54% between 2014 and 2024, an increase of more than $135,200 • The average existing home sale price in SCUC ISD has risen 85% in the last 10 years, an increase of more than $158,800 Avg New Home Avg Existing Home 2014 $250,897 $187,097 2015 $262,532 $181,881 2016 $284,037 $189,189 2017 $297,182 $197,710 2018 $328,762 $221,637 2019 $314,299 $234,868 2020 $318,065 $247,691 2021 $345,858 $257,537 2022 $431,606 $327,526 2023 $422,149 $333,286 2024 $386,156 $345,921 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 New Home Price Existing Home Price 7 San Antonio New Home Ranking Report ISD Ranked by Annual Closings –4Q24 * Based on additional Zonda Education housing research Rank District Name Annual Starts Annual Closings Inventory VDL Future 1NORTHSIDE ISD (BEXAR) 3,739 3,920 1,909 6,114 21,246 2COMAL ISD 2,691 3,028 1,670 4,843 21,591 3MEDINA VALLEY ISD 2,377 2,410 1,232 5,228 27,810 4EAST CENTRAL ISD 2,513 2,230 1,243 4,351 24,478 5SOUTHWEST ISD 1,301 1,328 628 2,269 7,296 6 JUDSON ISD 615 899 207 547 871 7SCUC ISD 787 894 391 2,113 5,896 8NAVARRO ISD 841 832 453 1,290 6,635 9 BOERNE ISD 777 761 497 1,545 9,427 10 SOUTHSIDE ISD 700 730 322 927 16,702 11 NEW BRAUNFELS ISD 656 589 407 854 6,164 12 NORTH EAST ISD 397 361 234 906 5,196 13 SEGUIN ISD 325 342 204 668 5,384 14 SOUTH SAN ANTONIO ISD 300 238 164 86 790 15 MARION ISD 230 174 139 327 4,559 16 FLORESVILLE ISD 116 137 49 227 0 17 SAN ANTONIO ISD 59 87 126 305 772 18 LYTLE ISD 91 76 44 319 1,046 19 PLEASANTON ISD 54 61 25 72 0 20 ALAMO HEIGHTS ISD 3 41 8 15 19 0 200 400 600 800 1,000 1,200 1,400 2018 2019 2020 2021 2022 2023 2024 Annual Starts Annual Closings 8 District New Home Starts and Closings Starts 2018 2019 2020 2021 2022 2023 2024 Closings 2018 2019 2020 2021 2022 2023 2024 1Q 175 201 237 294 349 103 189 1Q 133 138 165 190 181 280 235 2Q 180 176 197 300 393 187 260 2Q 185 211 249 258 227 247 249 3Q 177 207 261 265 174 241 163 3Q 185 240 286 268 218 199 200 4Q 185 198 232 319 63 157 161 4Q 161 179 213 196 334 155 214 Total 717 782 927 1,178 979 688 773 Total 664 768 913 912 960 881 898 9 District Housing Overview by Elementary Zone Elementary Annual Starts Quarter Starts Annual Closings Quarter Closings Under Const.Inventory Vacant Dev. Lots Future CIBOLO VALLEY 76 11 123 30 13 33 118 36 GREEN VALLEY00000 0 00 PASCHAL 10321 141242 ROSE GARDEN 234 64 230 53 85 137 827 2,499 SCHERTZ 0 0210 0 1 060 SIPPEL 298 70 277 68 76 154 729 1,817 WATTS 47 7 80 20 8 16 15 580 WIEDERSTEIN 131 9 160 41 13 49 383 662 Grand Total 787 161 894 214 196 391 2,113 5,896 Highest activity in the category Second highest activity in the category Third highest activity in the category • The district has 23 actively building subdivisions • Within SCUC ISD there are 6 future subdivisions in various stages of planning • Of these, groundwork is underway on more than 500 lots within 6 subdivisions • 462 lots were delivered in the 4 th quarter 10 District Housing Overview Mont Blanc • 100 total future lots • Preliminary plat approved Jan 2023 • Groundwork underway on all lots 11 Residential Activity Homestead • 1,470 total lots • 783 future lots • 296 vacant developed lots • 20 homes under construction • 339 homes occupied • Started 66 homes in last 12 months; started 16 homes in 4Q24 • Equipment on site for 62 lots in Phase 11 • $400K - $700K January 24, 2025 12 Residential Activity Saddle Creek Ranch • 807 total lots • 36 future lots • 61 vacant developed lots • 7 homes under construction • 690 homes occupied • Closed 61 homes in last 12 months; closed 16 homes in 2Q24 • Groundwork underway on remaining lots • $290K+ Grace Valley – Cibolo Farms • 331 total lots • 186 future lots • 124 vacant developed lots • 17 homes under construction • First homes started 4Q24 • Lennar January 24, 2025 13 Residential Activity Grace Valley • 868 total lots • 557 future lots • 163 vacant developed lots • 16 homes under construction • 128 homes occupied • Closed 123 homes in last 12 months; closed 32 homes in 4Q24 • Groundwork underway on 111 lots in Phase 3A • Lennar • $237K+ January 24, 2025 14 Residential Activity Venado Crossing • 507 total lots • 311 future lots • 15 vacant developed lots • 8 homes under construction • 165 homes occupied • Closed 48 homes in last 12 months; closed 20 homes in 4Q24 • Groundwork underway on 61 lots in Phase 4 • $350K+ Steele Creek • 940 total lots • 335 future lots • 118 vacant developed lots • 1 home under construction • 474 homes occupied • Closed 98 homes in last 12 months; closed 25 homes in 4Q24 • Delivered 111 lots for homebuilding in 4Q24 • DR Horton • $365K+ 15 Residential Activity Saddlebrook Ranch • 635 total lots • 335 future lots • 287 vacant developed lots • 12 homes under construction • Started first homes 3Q24 • Delivered 132 lots for homebuilding in Phase 4 & 5 in 4Q24 • Ashton Woods • $362K+ January 24, 2025 16 Residential Activity Crossvine • 1,017 total lots • 168 future lots • 291 vacant developed lots • 19 homes under construction • 516 homes occupied • Started 56 homes in last 12 months; started 15 homes in 4Q24 • $400K+ Clearwater Creek • 1,156 total future lots • Prelim plat Phase 1 (104 lots) approved April 2022 • Groundwork underway on Phase 1 • Lennar 17 Residential Activity January 24, 2025 18 Housing Market Trends: Multi‐family market‐December 2024 • There are 618 multifamily units under construction, 318 of which are single family rental homes • There are nearly 1,300 future multifamily units in various stages of planning across the district 19 District Multifamily Overview 20 Multi‐Family Activity January 24, 2025 Aviator 1518 • 300 apartment units under construction • Groundwork started early 2024 • Estimated lease date late spring 2025 21 Multi‐Family Activity Schertz Station • 318 single-family rental homes under construction • Groundwork started July 2024 • Estimated lease date August 2025 January 24, 2025 • There are 287 students residing in 2,472 multifamily units across the district • The overall district multifamily yield is 0.116 22 District Multifamily Yield 2,065 1,9111,988 1,690 0 500 1,000 1,500 2,000 2,500 2023/24 2024/25 Newcomers Leavers 23 Newcomers and Leavers +77 +221 24 Birth Rate Analysis Kindergarten Enrollment District Births Ratio 2006 (2011/12) 827 568 1.456 2007 (2012/13) 862 695 1.240 2008 (2013/14) 937 745 1.258 2009 (2014/15) 985 758 1.299 2010 (2015/16) 989 779 1.270 2011 (2016/17) 995 790 1.259 2012 (2017/18) 1,009 860 1.173 2013 (2018/19) 982 838 1.172 2014 (2019/20) 1,048 874 1.199 2015 (2020/21) 951 900 1.057 2016 (2021/22) 935 978 0.956 2017 (2022/23) 819 900 0.910 2018 (2023/24) 788 962 0.819 2019 (2024/25) 739 913 0.809 2020 (2025/26) 699 867 0.806 2021 (2026/27) 763 946 0.807 2022 (2027/28) 750 934 0.803 2023 (2028/29) 776 972 0.798 0 200 400 600 800 1000 1200 Schertz‐Cibolo‐U City ISD KG Enrollment vs. District Births Kindergarten Enrollment District Births 25 Yellow box = largest grade per year Green box = second largest grade per year Ten Year Forecast by Grade Level Year (Oct.) EE/PK K 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th Total Total Growth % Growth 2020/21 325 951 1,019 1,040 1,077 1,135 1,143 1,232 1,248 1,219 1,293 1,394 1,305 1,292 15,673 2021/22 455 935 997 1,019 1,074 1,116 1,124 1,221 1,287 1,318 1,428 1,347 1,305 1,264 15,890 217 1.4% 2022/23 436 819 962 998 1,077 1,114 1,067 1,133 1,230 1,306 1,478 1,371 1,247 1,283 15,521 ‐369 ‐2.3% 2023/24 430 788 838 967 997 1,090 1,079 1,097 1,178 1,264 1,435 1,459 1,238 1,286 15,146 ‐375 ‐2.4% 2024/25 444 737 814 895 989 1,018 1,121 1,116 1,112 1,232 1,469 1,403 1,394 1,202 14,946 ‐200 ‐1.3% 2025/26 452 715 766 853 925 1,022 1,057 1,171 1,147 1,150 1,415 1,438 1,354 1,374 14,839 ‐107 ‐0.7% 2026/27 458 780 747 805 886 972 1,051 1,094 1,207 1,189 1,315 1,388 1,374 1,352 14,618 ‐221 ‐1.5% 2027/28 461 768 815 789 838 922 998 1,091 1,120 1,253 1,370 1,286 1,335 1,363 14,409 ‐209 ‐1.4% 2028/29 463 797 806 858 825 877 953 1,038 1,119 1,160 1,436 1,342 1,237 1,326 14,237 ‐172 ‐1.2% 2029/30 463 811 826 836 888 851 903 988 1,057 1,161 1,331 1,406 1,287 1,232 14,040 ‐197 ‐1.4% 2030/31 463 833 840 860 865 918 878 938 1,015 1,098 1,335 1,303 1,352 1,279 13,977 ‐63 ‐0.4% 2031/32 463 850 867 874 894 900 948 913 961 1,052 1,264 1,307 1,252 1,343 13,888 ‐89 ‐0.6% 2032/33 463 862 877 899 906 926 929 985 935 997 1,207 1,237 1,254 1,246 13,723 ‐165 ‐1.2% 2033/34 463 885 890 910 931 939 957 966 1,009 970 1,146 1,184 1,185 1,247 13,682 ‐41 ‐0.3% 2034/35 463 902 917 924 943 965 971 995 991 1,047 1,115 1,124 1,140 1,180 13,677 ‐50.0% 26 Ten Year Forecast by Campus Yellow box = exceeds Functional capacity Pink box = exceeds Max capacity Fall ENROLLMENT PROJECTIONS Campus Functional Capacity Max Capacity 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 CIBOLO VALLEY EL 1,038 1,200 591 535 523 519 510 512 521 526 534 544 554 GREEN VALLEY EL 732 899 503 481 463 469 462 453 451 450 450 448 449 NORMA PASCHAL EL 704 871 574 556 545 521 531 524 528 527 530 531 531 ROSE GARDEN EL 1,031 1,200 861 838 814 813 814 830 856 876 906 936 969 SCHERTZ EL 683 1,017 663 635 618 571 561 561 564 556 553 550 545 SIPPEL EL 704 997 641 625 628 645 647 665 689 707 731 757 783 WATTS EL 739 906 500 486 473 457 473 480 494 505 519 530 546 WIEDERSTEIN EL 704 997 564 577 584 598 628 650 676 701 710 722 737 ELEMENTARY TOTALS 4,897 4,733 4,648 4,593 4,626 4,675 4,779 4,848 4,933 5,018 5,114 Elementary Percent Change ‐4.17%‐3.35%‐1.80%‐1.18% 0.72% 1.06% 2.22%1.44% 1.75% 1.72% 1.91% Elementary Absolute Change ‐213 ‐164 ‐85 ‐55 33 49 104 69 85 85 96 JORDAN INT 888 1,126 811 781 754 752 711 675 665 694 728 737 755 SCHLATHER INT 832 1,116 724 740 683 615 607 607 556 569 583 585 599 WILDER INT 855 1,188 702 707 708 722 673 609 595 598 603 601 612 INTERMEDIATE TOTALS 2,237 2,228 2,145 2,089 1,991 1,891 1,816 1,861 1,914 1,923 1,966 Intermediate Percent Change 2.80%‐0.40%‐3.73%‐2.61%‐4.69%‐5.02%‐3.97% 2.48% 2.85% 0.47% 2.24% Intermediate Absolute Change 61 ‐9 ‐83 ‐56 ‐98 ‐100 ‐75 45 53 9 43 DOBIE JH 1,285 1,540 1,231 1,184 1,262 1,256 1,180 1,108 1,073 1,052 992 1,023 1,058 CORBETT JH 1,285 1,500 1,113 1,113 1,134 1,117 1,099 1,110 1,040 961 940 956 980 JUNIOR HIGH SCHOOL TOTALS 2,344 2,297 2,396 2,373 2,279 2,218 2,113 2,013 1,932 1,979 2,038 Junior High School Percent Change ‐4.01%‐2.01% 4.31%‐0.96%‐3.96%‐2.68%‐4.73%‐4.73%‐4.02% 2.43% 2.98% Junior High School Absolute Change ‐98 ‐47 99 ‐23 ‐94 ‐61 ‐105 ‐100 ‐81 47 59 CLEMENS HS 2,733 3,300 2,589 2,618 2,531 2,523 2,523 2,491 2,503 2,492 2,388 2,309 2,206 STEELE HS 2,733 3,200 2,790 2,871 2,806 2,739 2,726 2,673 2,674 2,582 2,464 2,361 2,261 ALSELC 89 92 92 92 92 92 92 92 92 92 92 HIGH SCHOOL TOTALS 5,468 5,581 5,429 5,354 5,341 5,256 5,269 5,166 4,944 4,762 4,559 High School Percent Change 0.92% 2.07%‐2.72%‐1.38%‐0.24%‐1.59% 0.25%‐1.95%‐4.30%‐3.68%‐4.26% High School Absolute Change 50 113 ‐152 ‐75 ‐13 ‐85 13 ‐103 ‐222 ‐182 ‐203 DISTRICT TOTALS 14,946 14,839 14,618 14,409 14,237 14,040 13,977 13,888 13,723 13,682 13,677 District Percent Change ‐1.32%‐0.72%‐1.49%‐1.43%‐1.19%‐1.38%‐0.45%‐0.64%‐1.19%‐0.30%‐0.04% District Absolute Change ‐200 ‐107 ‐221 ‐209 ‐172 ‐197 ‐63 ‐89 ‐165 ‐41 ‐5 27 Key Takeaways Annual closings near 900 in 2024 Housing market remains cloudy with continued high interest rates and looming tariffs The district has more than 390 homes currently in inventory and more than 2,100 vacant developed lots available for builders Groundwork is underway on approx. 500 lots within 6 subdivisions Schertz‐Cibolo‐Universal City ISD is forecasted to enroll more than 14,000 students by 2029/30 14,946 14,040 13,677 12,500 13,000 13,500 14,000 14,500 15,000 15,500 16,000 16,500 Enrollment Projections FORECASTING CONSIDERATIONS • • • • • • 13,540 14,056 14,586 15,081 15,465 15,615 15,768 15,972 15,673 15,890 15,521 15,146 14,864 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 20,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024-P # O F S T U D E N T S DISTRICT ENROLLMENT HISTORICAL ENROLLMENT 1.0% growth per year (153 students per year) 1.3% loss per year (-195 students per year) 3.4% growth per year (481 students per year) HISTORICAL ENROLLMENT BY CAMPUS LEVEL 5,261 5,446 5,512 5,716 5,783 5,811 5,899 5,547 5,596 5,406 5,110 4,895 2,125 2,211 2,326 2,253 2,252 2,344 2,445 2,375 2,345 2,200 2,176 2,226 2,210 2,211 2,341 2,421 2,453 2,403 2,363 2,467 2,605 2,536 2,442 2,324 4,460 4,718 4,902 5,075 5,127 5,210 5,265 5,284 5,344 5,379 5,418 5,419 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024-P # O F S T U D E N T S CAMPUS LEVEL ENROLLMENT Elementary Intermediate Junior High High School ENROLLMENT HISTORY BY LEVEL –OCTOBER • • • • • • • STUDENT TRANSFERS PEIMS YEAR TRANSFER IN TRANSFER OUT DIFFERENCE 2012 216 681 -465 2013 212 704 -492 2014 244 647 -403 2015 302 702 -400 2016 297 907 -610 2017 290 1061 -771 2018 304 1079 -775 2019 296 1283 -987 2020 300 1591 -1291 2021 317 1981 -1664 2022 308 2695 -2387 2023 Data available in March First Year of Founders Charter School First Year of School of Science and Technology First Year of Legacy Traditional School STUDENT TRANSFERS IN VS. OUT 216 212 244 302 297 290 304 296 300 317 308 681 704 647 702 907 1,061 1,079 1,283 1,591 1,981 2,695 0 500 1,000 1,500 2,000 2,500 3,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 # O F S T U D E N T S STUDENT TRANSFERS IN vs OUT TRANSFER IN TRANSFER OUT School of Science and Technology Pre-K –8th Grade Legacy Traditional Pre-K –8th Grade Founders Academy K –12th Grade MAIN DESTINATIONS FOR TRANSFERS OUT 444 472 551 529 504 272 328 356 365 414 34 43 119 159 192 16 24 71 285 367 52 106 229 0 463 0 100 200 300 400 500 600 2018 2019 2020 2021 2022 2023 # O F S T U D E N T S TRANSFER DESTINATIONS Randolph ISD Founders Academy Great Hearts School of Science and Technology Judson ISD Legacy Traditional SO, HOW MANY STUDENTS WILL WE HAVE IN THE FUTURE? 14,056 15,081 15,615 15,972 15,890 15,146 14,661 14,217 14,007 14,036 14,162 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 20,000 # O F S T U D E N T S DISTRICT HISTORICAL ENROLLMENT AND PROJECTIONS ENROLLMENT PROJECTIONS o o o o PEIMS YEAR PROJECTED ENROLLMENT GROWTH (DECLINE) PERCENTAGE CHANGE 2023 15,146 -375 -2.42% 2024-P 14,864 -282 -1.86% 2025-P 14,661 -203 -1.37% 2026-P 14,451 -210 -1.43% 2027-P 14,217 -234 -1. 62% 2028-P 14,073 -144 -1.01% 2029-P 14,007 -66 -0.47% 2030-P 14,017 10 0.07% 2031-P 14,036 19 0.14% 2032-P 14,059 22 0.16% 2033-P 14,162 103 0.73% PEIMS YEAR PROJECTED ENROLLMENT GROWTH (DECLINE) PERCENTAGE CHANGE 2023 15,146 -375 -2.44% 2024-P 14,864 -282 -1.86% 2025-P 14,661 -203 -1.37% 2026-P 14,451 -210 -1.43% 2027-P 14,217 -234 -1. 62% 2028-P 14,073 -144 -1.01% 2029-P 14,007 -66 -0.47% 2030-P 14,017 10 0.07% 2031-P 14,036 19 0.14% 2032-P 14,059 22 0.16% 2033-P 14,162 103 0.73% ENROLLMENT PROJECTIONS o o o WHY HAS IT BECOME SO HARD TO PROJECT ENROLLMENT? o o o o o o FORECASTING CONSIDERATIONS • • • • •CAMPUS CAPACITY UNDERSTANDING CAMPUS CAPACITY o o o o o o o o o PLANNING USING OUR MAXIMUM CAPACITY o CAPACITY RELIEF TOOLS o o o o o o o o o ELEMENTARY CAPACITIES Campus Functional Capacity Max Capacity Previous Year Current PEIMS ENROLLMENT PROJECTIONS 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 CIBOLO VALLEY EL 891 1,200 761 657 611 587 589 594 594 608 617 620 627 637 % Max Capacity 63%55%51%49%49%49%49%51%51%52%52%53% GREEN VALLEY EL 673 924 586 533 497 482 469 497 506 524 535 537 535 529 % Max Capacity 63%58%54%52%51%54%55%57%58%58%58%57% NORMA PASCHAL EL 673 924 603 625 591 582 564 544 546 559 569 574 580 585 % Max Capacity 65%68%64%63%61%59%59%60%62%62%63%63% ROSE GARDEN EL 891 1,200 899 896 882 878 891 923 957 999 1,046 1,075 1,104 1,131 % Max Capacity 75%75%74%73%74%77%80%83%87%90%92%94% SCHERTZ EL 675 1,102 671 668 628 605 601 576 581 588 591 586 582 582 % Max Capacity 61%61%57%55%55%52%53%53%54%53%53%53% SIPPEL EL 675 1,058 742 672 679 690 721 756 782 827 867 904 961 1,030 % Max Capacity 70%64%64%65%68%71%74%78%82%85%91%97% WATTS EL 673 924 593 513 469 440 428 423 428 446 457 463 476 490 % Max Capacity 64%56%51%48%46%46%46%48%49%50%52%53% WIEDERSTEIN EL 675 1,058 551 546 538 544 527 517 529 549 568 574 587 602 % Max Capacity 52%52%51%51%50%49%50%52%54%54%55%57% ELEMENTARY TOTALS 5,826 8,390 5,406 5,110 4,895 4,808 4,790 4,830 4,922 5,099 5,250 5,335 5,453 5,587 % Max Capacity 64%61%58%57%57%58%59%61%63%64%65%67% Elementary Percent Change -3.40%-5.48%-4.21%-1.78%-0.37%0.83%1.91%3.59%2.96%1.63%2.20%2.46% Elementary Absolute Change -190 -296 -215 -87 -18 40 92 177 151 85 117 134 ELEMENTARY CAPACITIES 90% 92%94% 91% 97% 67% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 % of MAXIMUM CAMPUS CAPACITY CIBOLO VALLEY EL GREEN VALLEY EL NORMA PASCHAL EL ROSE GARDEN EL SCHERTZ EL SIPPEL EL WATTS EL WIEDERSTEIN EL ELEMENTARY TOTALS INTERMEDIATE CAPACITIES Campus Functional Capacity Max Capacity Previous Year Current PEIMS ENROLLMENT PROJECTIONS 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 JORDAN INT 810 1,000 716 769 796 763 777 742 676 646 641 695 734 739 % Max Capacity 72%77%80%76%78%74%68%65%64%70%73%74% SCHLATHER INT 810 1,200 750 682 700 689 640 573 563 594 597 651 682 677 % Max Capacity 63%57%58%57%53%48%47%50%50%54%57%56% WILDER INT 810 1,250 734 725 730 743 748 739 683 627 616 654 681 685 % Max Capacity 59%58%58%59%60%59%55%50%49%52%54%55% INTERMEDIATE TOTALS 3,450 2,201 2,176 2,226 2,195 2,165 2,054 1,922 1,867 1,854 2,000 2,097 2,101 % Max Capacity 64%63%65%64%63%60%56%54%54%58%61%61% Intermediate Percent Change -6.13%-1.09%2.30%-1.39%-1.37%-5.13%-6.43%-2.86%-0.70%7.87%4.85%0.19% Intermediate Absolute Change -144 -24 50 -31 -30 -111 -132 -55 -13 146 97 4 INTERMEDIATE CAPACITIES 74% 61% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 % of MAXIMUM CAMPUS CAPACITY JORDAN INT SCHLATHER INT WILDER INT INTERMEDIATE TOTALS JUNIOR HIGH CAPACITIES Campus Functional Capacity Max Capacity Previous Year Current PEIMS ENROLLMENT PROJECTIONS 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 DOBIE JH 1,300 1,540 1,348 1,316 1,229 1,194 1,228 1,196 1,152 1,058 1,009 1,025 1,025 1,109 % Max Capacity 88%85%80%78%80%78%75%69%66%67%67%72% CORBETT JH 1,080 1,500 1,188 1,126 1,095 1,096 1,103 1,111 1,114 1,083 1,001 936 924 989 % Max Capacity 79%75%73%73%74%74%74%72%67%62%62%66% JUNIOR HIGH SCHOOL TOTALS 3,040 2,537 2,442 2,324 2,290 2,331 2,307 2,266 2,141 2,010 1,961 1,949 2,098 % Max Capacity 83%80%76%75%77%76%75%70%66%65%64%69% Junior High School Percent Change -2.62%-3.71%-4.83%-1.46%1.79%-1.03%-1.78%-5.52%-6.12%-2.44%-0.61%7.64% Junior High School Absolute Change -68 -94 -118 -34 41 -24 -41 -125 -131 -49 -12 149 JUNIOR HIGH CAPACITIES 72% 66% 69% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 % of MAXIMUM CAMPUS CAPACITY DOBIE JH CORBETT JH JUNIOR HIGH SCHOOL TOTALS HIGH SCHOOL CAPACITIES Campus Functional Capacity Max Capacity Previous Year Current PEIMS ENROLLMENT PROJECTIONS 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 CLEMENS HS 2,700 3,300 2,544 2,563 2,576 2,550 2,469 2,419 2,397 2,400 2,418 2,383 2,292 2,183 % Max Capacity 77%78%78%77%75%73%73%73%73%72%69%66% STEELE HS 2,160 3,200 2,716 2,700 2,688 2,663 2,541 2,452 2,411 2,345 2,330 2,202 2,113 2,038 % Max Capacity 85%84%84%83%79%77%75%73%73%69%66%64% HIGH SCHOOL TOTALS 6,650 5,381 5,418 5,419 5,368 5,165 5,026 4,963 4,900 4,903 4,740 4,560 4,376 % Max Capacity 81%81%81%81%78%76%75%74%74%71%69%66% High School Percent Change 0.69%0.71%0.02%-0.94%-3.78%-2.69%-1.25%-1.27%0.06%-3.32%-3.80%-4.04% High School Absolute Change 37 38 1 -52 -204 -137 -64 -63 3 -163 -180 -183 HIGH SCHOOL CAPACITIES 66% 64% 66% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 % of MAXIMUM CAMPUS CAPACITY CLEMENS HS STEELE HS HIGH SCHOOL TOTALS FORECASTING CONSIDERATIONS • • • • • •BONDING CAPACITY PROJECTING BONDING CAPACITY -SCUC o PROJECTING TAX REVENUE o ASSUMES NO REFINANCING FOR BOND SAVINGS o DEFEASING PRINCIPAL o MODEST PROPERTY VALUE GROWTH o 4.0% ANNUAL INCREASE FOR 2024-2028 o 2.0% ANNUAL INCREASE FOR 2029-2033 o AS DEBT IS RESTRUCTURED AND PROPERTY VALUES INCREASE, WE BEGIN TO HAVE SOME BONDING CAPACITY o CAPACITY FOR ADDITIONAL DEBT IS LOWER AT FIRST, MORE IN LATER YEARS o FORECASTING USING THREE OPTIONS FOR I&S TAX RATE o $0.47 PER $100 OF VALUATION (C URRENT), $0.48 PER $100 VALUATION, AND $0.49 PER $100 VALUATION PROJECTED AVAILABLE BOND DOLLARS $215 $246 $278 $312 $347 $362 $380 $399 $419 $438 $284 $316 $351 $388 $426 $442 $463 $483 $505 $526 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 BO N D C A P A C I T Y I N M I L L I O N S SCUC Bond Capacity by Year & Rate Bond Capacity 47¢Bond Capacity 48¢Bond Capacity 49¢ PROJECTING FACILITY COSTS -SCUC o o o o o o o o o o o PROJECTING FACILITY COSTS -SCUC YEAR High School Junior High Elementary/ Intermediate 2024 $ 235,000,000 $ 113,000,000 $ 72,000,000 2025-P $ 242,050,000 $ 116,390,000 $ 74,160,000 2026-P $ 246,891,000 $ 118,717,800 $ 75,643,200 2027-P $ 251,828,820 $ 121,092,156 $ 77,156,064 2028-P $ 256,865,396 $ 123,513,999 $ 78,699,185 2029-P $ 262,002,704 $ 125,984,279 $ 80,273,169 2030-P $ 267,242,758 $ 128,503,965 $ 81,878,632 2031-P $ 272,587,614 $ 131,074,044 $ 83,516,205 2032-P $ 278,039,366 $ 133,695,525 $ 85,186,529 2033-P $ 283,600,153 $ 136,369,435 $ 86,890,260 2034-P $ 289,272,156 $ 139,096,824 $ 88,628,065 PROJECTED BOND CAPACITIES VS. CONSTRUCTION COSTS $0 $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 BONDING CAPACITY VS CONSTRUCTION COSTS JUNIOR HIGH Bond Capacity 47¢Bond Capacity 48¢Bond Capacity 49¢ PROJECTED BOND CAPACITIES VS. CONSTRUCTION COSTS $0 $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 BONDING CAPACITY VS CONSTRUCTION COSTS JUNIOR HIGH Bond Capacity 47¢Bond Capacity 48¢Bond Capacity 49¢ Estimated $41 M in HVAC needs over the next 10 years Estimated $9 M in Ancillary Systems needs over the next 10 years Estimated $40 M in Building and Site needs over the next 10 years TAKE AWAYS…. o o o o o o o o o QUESTIONS/COMMENTS Agenda No. CITY COUNCIL MEMORANDUM City Council Meeting:August 4, 2026 Department:City Secretary Subject:Information available in City Council Packets - NO DISCUSSION TO OCCUR Agenda No. 8. CITY COUNCIL MEMORANDUM City Council Meeting:August 4, 2026 Department:City Secretary Subject:National League of Cities Membership (City Secretary Sheila Edmondson) BACKGROUND National League of Cities (NLC) Membership Information. Membership ID #000004365O Membership: Expiration date February 28, 2027 POC: Katya (Ka-tia) Mayer Sr. Regional Specialist-South 202-968-7540 The Mayor's and the City Secretary's email addresses are in our NLC profile as point-of-contact. Agenda No. 9. CITY COUNCIL MEMORANDUM City Council Meeting:August 4, 2026 Department:Engineering Subject:August 2026 Projects in Progress (City Engineer Kathy Woodlee) Attachments August 2026 Projects in Progress Informational Only CITY COUNCIL MEMORANDUM City Council Meeting: August 4, 2026 Department: City Manager Subject: Update on Major Projects in Progress Background This is the monthly update on large projects that are in progress or in the planning process. This update is being provided so Council will be up to date on the progress of these large projects. If Council desires more information on any project or on projects not on this list, please reach out to staff and that information will be provided. Facilities Projects: 1. Fleet Building Parking Lot Project Description – Pave the open grassy area located at 27 Commercial Place o Project Status: Site Plan Development and Construction Design o Projected Completion: To be determined o Consultant: Unintech Consulting Engineers, Inc. o Contractor: To be determined Project Update: This project is being pushed back to FY26-27 due to the need to reallocate funding from this project to help fund the repairs of the retention wall and pavers at the Schertz Library. In the interim, Public Works has graded a small area of the lot to provide additional improved surface for parking and storage of vehicles and equipment in order to comply with the City’s regulations regarding the use of unimproved surfaces. 2. Library Retention Wall (Pavers) Project Description – Replacing the failing plastic panels around the library foundation with concrete panels. This includes removal and replacement of some of the concrete pavers in the rear courtyard. o Project Status: Design o Projected Completion: Spring 2026 o Project Cost: $350,000 o Consultant: Unintech Consulting Engineering o Contractor: To be determined Project Update: The project was bid and two bids were received. An additional “proposal” came in after the bid opening. This “proposal” couldn’t be considered as a responsive bid for the project. Both responsive bids far exceeded the Engineer’s Estimate and budget available for the project. In reviewing the bids, some of the individual bid items had extremely high unit prices. There is an agenda item for the August 4th meeting to reject all the bids received, which will allow the project to be re-bid. Our consultant is reaching out to the bidders to determine what in the bid package triggered such high costs. That information will be used to revise the bid package to hopefully receive more favorable bids. 3. Fire Station 4 Project Description – Fire Station 4 Build o Project Status: All walls are up and building is wrapped. CMU is almost complete on the front, after metal cross bracing is welded in place (this is for wind strength). Metal studs are in place, and they are working through all rough-in for electrical and plumbing. Coming will be set ceiling cassettes, drywall one side of walls, rough-in apparatus bay walls, and electrical HVAC overhead rough-in. o Projected Completion: March 2027 o Total Project Cost: Estimated $13.25 million o Building Cost: Estimated $10 million o Consultant: AGCM – Owner Rep o Architect: Martinez Architecture o Contractor: Marksman – CMAR Project Update: We had 3 rain days in July so far due to the weather we all went through. We have been doing daily walk-throughs so we can find any items that need addressing before the walls get closed in. This has proved beneficial so far and will continue until all in wall work in completed and they prepare to close in all walls. From here, we will begin to make our shopping list for appliances and equipment for the station, so it is here when they are ready to go. If present pace of construction continues, they are predicting an early completion. However, they will not commit to a date modification at this point. 4. FM 78 Build Out PD CID Property Room Project Description – Remodel a portion of the County Building that PD will utilize for CID and Property. o Project Status: Approved by the County o Projected Completion: TBD o Consultant: AG/CM (Owners Representative) o Contractor: TBD Project Update: An internal estimate, prepared with support from an owner's representative, placed the project cost between $530,000 and $560,000, which is $1.4 million less than the Parkhill proposal. City staff will present a resolution to the City Council recommending the rejection of all proposals and rebidding the project under a Design-Build delivery model. The decision to switch to a Design-Build framework aims to better integrate the design and construction phases and streamline project management. Staff has also agreed to engage an owner's representative to oversee the project and protect the city's interests at an estimated cost of $67K, thus, we are requesting a CIP increase of $250K for a total estimated project cost of $650K. June 18 Update- On 6/16/26, City Staff met with AG/CM for the preliminary meeting. Purchasing will obtain the RFQ documents from AG/CM and use the city-standard RFQ to initiate the new bidding process for the project. This does not have to go on the agenda for the City Council to approve before going out for review. AG/CM mentioned the total, estimated project time could be 11 months. July 8, 2026 – AG/CM and city staff met with potential contractors to discuss the scope of work and answer any questions. Five companies were represented at the meeting. SOQs are due no later than 1400 hours on July 30, 2026. 5. Police Department Building Remodel Project Description – Remodel office areas within building #6 where the Police Department operates. Areas to remodel may include the current CIS division, P&E holding area, and possibly other offices along that hallway. o Project Status: Once the FM 78 project is nearing completion, we can move forward. o Projected Completion: TBD o Consultant: TBD o Contractor: TBD Project Update: In a holding status until administrative tasks with the FM 78 build out for the property room and CID are completed. No update as of June 2026. 6. HVAC Replacement Project Description – Replacing aged HVAC units at the following locations City Hall (5 units), Council Chambers (1), Library (9) and YMCA (11). o Project Status: In progress o Projected Completion: estimated August 2026 o Contractor: Way Mechanical Project Update: The installation and replacement of the Council Chambers HVAC unit have been completed. The contractor has completed the installation of the railing at City Hall. City Hall is currently pending an installation date for the 5 RTUs. Lastly, due to summer schedules, the Library and YMCA installation and replacement will take place in August 2026. Drainage Projects: 1. FM 78 South Channel Silt Removal Project Description – Silt removal for the existing FM 78 South Drainage channel to include permitting, easement acquisition and construction. o Project Status: Easement Acquisition o Projected Completion: Spring 2027 o Project Cost: Design $32,100, Drainage Report $4,600 o Consultant: Unintech Consulting Engineers, Inc. o Contractor: TBD Project Update: Easement negotiations are continuing with the property owners. After easements are acquired, the project will be rebid, and construction will proceed. 2. Pickrell Park & FM 1518 Drainage Project Description – Installation of underground drainage, upgraded creek outfalls and provide localized surface drainage swales. Sanitary sewer relocation within areas of conflict with proposed drainage improvements o Project Status: Preliminary Engineering Study o Projected Completion: TBD o Project Cost: $41,987 - $47,500 NTE (study only) o Consultant: Unintech Consulting Engineers, Inc. o Contractor: TBD Project Update: Staff is reviewing the latest revisions provided by Unintech. Recommendations from the study will be used to develop a project to improve the drainage in this area of the City. 3. Wendy Swan Drainage Project Description – Removal of an existing concrete retaining wall, install underground drainage and fill to grade with localized surface drainage. o Project Status: Design o Projected Completion: Summer 2026 o Project Cost: Design $108,500 ($125,000 NTE), Construction Estimate $800,000 o Consultant: Unintech Consulting Engineers, Inc. o Contractor: TBD Project Update: Staff has received final plans and specifications. Staff has sent out correspondence via certified mail trying to obtain a temporary easement/right-of-entry to relocate a property owner’s fence from the park property onto the property owner’s property. 4. Friesenhahn Lift Station Drainage Improvements Project Description – Drainage study of Friesenhahn Lift Station site will be performed and used to develop plans for construction of recommended improvements to remedy poor drainage conditions around the site. o Project Status: Study and Design o Projected Completion: TBD o Project Cost: Design $74,815 Construction Estimate TBD o Consultant: Utility Engineering Group o Contractor: TBD Project Update: No change from the last update. UEG is working to update the recommendations discussed with staff, and these will be used in the design phase of the project. Water and Wastewater Projects: 1. Woman Hollering Creek Wastewater Interceptor Main and Lift Station Project Description – Design and construction of a sanitary sewer system to collect and convey wastewater to the future CCMA water reclamation plant off Trainer Hale Road in Southern Schertz. The system consists of approximately 19,000 linear feet of 30” gravity wastewater line running generally along Woman Hollering Creek from the existing Sedona lift station on FM 1518 to a new lift station on IH 10 and approximately 6,000 feet of force main from the lift station to CCMA plant. It also includes an additional 18” gravity line approximately 1,500 feet in length that will first serve the Hallie’s Cove Subdivision. The system is necessary for the new CCMA plant to begin operation and to allow the existing Woman Hollering Lift Station at Sedona to be taken out of service. o Project Status: Construction o Projected Completion: Summer 2026 o Project Cost: Engineering/Design $1,187,594, Land purchases, ROW, legal and advertising $700,810, Construction $11,200,000, and miscellaneous costs for a project total of $13,088,404 o Design Engineer: Cobb Fendley & Associates, Inc. o Owner’s Representative: AGCM, Inc. o Contractor: Thalle Construction Co, Inc. Project Update: The collection and conveyance system including the lift station was put into operation March 3, 2025. The CCMA South Plant is operational. The contractor continues to work on correction of items identified on the punchlist for the project to be completed. Remaining work includes correction of pump issues, relocation and elevation of main disconnect, repair of settling crane foundation and subsequent crane operational testing. It is still estimated that the remainder of the work on the project may still take several months to complete but as stated, the project is operational. 2. Riata Lift Station Relocation Project Description – Relocation of the Riata Lift Station ahead of TxDOT’s IH 35 NEX project to remove it from conflict with the proposed highway improvements. The design phase included identification of a new site for the list station, design of new lift station and design of the abandonment of the existing lift station. Property and easement acquisitions were required. The new lift station is needed to maintain sewer services. o Project Status: Begin Construction 4th Quarter of 2024. o Projected Completion: Summer 2026 o Project Cost: Design & Acquisition of easements and existing lift station $478,000; Construction: $2,800,000 o Consultant: Utility Engineering Group, PLLC o Contractor: Keystone Construction Project Update: Keystone has planted the required trees along the front of the lift station. Final closeout documents are being sent and reviewed for completion by staff. UEG and staff continue to work with TxDOT for the reimbursement of the cost of design, site acquisition, and construction. Riata Lift Station Location 3. FM 1518 Utility Relocations Project Description – Relocation of water and sewer utilities to avoid conflicts as part of the TxDOT FM 1518 Improvement Project. o Project Status: Construction o Projected Completion: The City’s utility relocation portion of the project is expected to be completed in the Fall of 2026. o Project Cost: Design NTE $980,000, Construction Joint Bid $8,986,837/Aztec 16” Line $884,270 o Consultant: Halff Associates, Inc. o Contractor: SER Construction Partners (TxDOT’s General Contractor)/Qro Mex Construction (Aztec 16” Line-completed) Project Update: No change since last update. SER has slowed down on the installation of water and sewer on the north end of the project due to CCMA working on their utility relocations within the same area. Once CCMA is completed in the area, SER will resume utility installation. 4. Corbett Ground Storage Tank Project Description – Construction of a new 3-million-gallon Ground Storage Tank (GST). The GST will be used to fill the existing Corbett Elevated Storage Tank and provide additional water storage capacity. This new GST will receive water directly from the Schertz Seguin Local Government Corporation. o Project Status: Construction Phase o Projected Completion: Summer 2026 o Project Cost: Design $547,100, Construction $8,665,220 o Consultant: Unintech Consulting Engineers o Contractor: Pesado Construction Co. Project Update: There are a couple remaining punchlist items that Pesado is working to complete. They are also providing the final closeout document including O&M manuals for staff review. 5. Water Loop Lines Project Description – Install 12” water main lines to provide a looped distribution system from Ware Seguin to Lower Seguin and Pfeil Road to N Graytown Road. o Project Status: Design/Easement Acquisition o Projected Completion: Fall 2026 o Project Cost: Design NTE $254,974, Construction Estimate $4,400,000 Project Update: Unintech has begun assembling the construction contract documents to begin the bidding process for the section of water line along IH 10 between Pfeil and N. Graytown roads. Advertising and bidding will be done in August. 6. IH 35 NEX-North Utility Relocations Project Description – Relocation of water and sewer utilities to avoid conflicts as part of the TxDOT IH 35 NEX project. o Project Status: Design - Construction o Projected Completion: Joint Bid Construction is planned for Fall 2027 o Project Cost: Design & Easement Acquisition Services - $1,250,000 o Project Cost: Construction Sewer Only - $1,787,074 ($2,000,000 NTE) o Consultant: Halff Associates, Inc. Project Update: No new updates - Blackrock Construction continues the sewer construction effort along IH 35. Halff is working to revise plans of a sewer crossing of IH 35 due to conflicts discovered with other utility providers. This is being coordinated with the contractor, TxDOT, and the other utilities to ensure a change in the vertical alignment does not create any other concerns. Once these plans are approved, Blackrock will continue with the bore to install the sewer line casing. 7. Robin Hood Way Waterline Replacement Project Description – Replacement and upsizing of water line in Robin Hood Way, Sherlock Lane, and Nottingshire. The main replacement is to increase flows in the area, particularly to meet fire flow requirements. The project also includes street resurfacing and rehabilitation work that was previously removed from the SPAM project. o Project Status: Design o Projected Completion: Fall 2027 o Project Cost: $5,350,000 o Consultant: Kimley- Horn & Associates Project Update: The additional survey work has been completed, and our consultant is revising the project plans. Some value engineering is also ongoing with the proposed street work in the project. We anticipate having the project ready to bid before the end of this fiscal year and construction starting in early 2027. 8. Bell North Sewer Extension Project Description – Ten commercial properties on the west end of Bell North Drive are served by private grinder pumps that pump into a public wastewater force main that discharges into a manhole near 17316 Bell North Drive. This project is the construction of a gravity sewer main within Bell North Drive that will flow toward and discharge into the main on Doerr Lane. o Project Status: 90% Completion o Projected Completion: Summer 2026 o Project Cost: Design $95,000 o Project Cost: Construction $513,900 ($575,000 NTE) o Consultant: Freeland Turk Engineering Group LLC o Contractor: RL Jones, LP Project Update: No change from last update. RL Jones has completed their punch‑list items. The City is currently coordinating with the remaining businesses that continue to operate on onsite septic systems, which were not identified or included during the original design phase. 9. Northcliffe Country Club Estates Water and Wastewater Main Replacement Project Description – replacement of the water and wastewater mains and rehabilitation of the streets in the Northcliffe Country Club Estates subdivision. o Project Status: Design o Projected Completion: Fall 2027 o Project Cost: $8,733,400 (estimated) o Consultant: Unintech Consulting Engineers, Inc. Project Update: The project is expected to be bid later this month. 10. Cibolo West Wastewater Trunk Main Project Description – Installation of approximately 21,680 LF of gravity wastewater trunk main that will collect wastewater at the location of the Saddlebrook Wastewater Lift Station as well as areas north of Schaefer Road and convey flows south along a route including along Weir and Trainer Hale Roads and the west side of Cibolo Creek to the CCMA South Water Reclamation Plant. Having this line in place will ultimately allow the decommissioning of the Corbett and Saddlebrook Lift Stations. The project is a collaboration between the City of Schertz and Green Valley Special Utility District (GVSUD). o Project Status: Easement Acquisition o Projected Completion: Fall 2027 o Total Project Cost: $26,743,000 o Consultant for Route Study: Lockwood, Andrews, & Newnam, Inc. o Consultant for PER and Easement Acquisition: Halff Associates, Inc. Project Update: After a meeting with Halff, staff is awaiting a scope and fee proposal to prepare a preliminary engineering report and easement acquisitions. Staff plans to present the results of the route study and bring the PER task order to Council during a coming meeting. 11. Elevated Storage Tank Pipe Replacement and Tank Painting Project Description – Rehabilitation of vertical fill and drain line piping in the East Live Oak and Northcliffe elevated storage tanks due to increased signs of fatigue at the welded joints. The project also includes the painting of the interior and exterior of the East Live Oak and Northcliffe elevated tanks and the Ware Seguin ground storage tank. o Project Status: Design o Projected Completion: Design expected to be complete by Fall 2026. o Total Project Cost: $2,600,000 Estimated Total o Consultant for Study: Unintech Consulting Engineers, Inc. Project Update: Staff has provided their preference on pipe materials to replace the damaged riser piping. Unintech will begin work on their design for staff review. 12. Schertz Parkway 16” Water Transmission Main Replacement Project Description – Replacement of approximately 1,200 linear feet of 16” water transmission main along Schertz Parkway between Mare Way and Maske Road. o Project Status: Design o Projected Completion: Winter 2026 o Project Cost: Design $180,824 ($245,000 NTE), Easements $50,000, Construction Estimate $1,500,000 o Consultant: Unintech Consulting Engineers, Inc. o Contractor: TBD Project Update: Final plans have been received. Consultant is still working to obtain the required construction easement for the new waterline. Project is waiting until easement is acquired before bidding. Staff has processed a task order for appraisal services to help determine the easement cost. Unintech has also provided an option to install a liner in the existing pipe rather than construct a new water line. Staff is scheduled to meet with CPM Pipelines to discuss this option and make a determination which option we want to use for this project. 13. FM 3009 18” Water Transmission Main Replacement Project Description – Replacement of approximately 7,600 linear feet of 18” water transmission main. o Project Status: Design o Projected Completion: Fall 2027 o Project Cost: Design $431,752 ($550,000 NTE), Construction Estimate (including easement acquisition) $4,800,000 o Consultant: Unintech Consulting Engineers, Inc. o Contractor: TBD Project Update: Preliminary plans have been reviewed by staff and returned to Unintech for correction and final design. 14. IH 35 Ground Storage Tank and Pump Station Project Description – Construction of a 3-million-gallon ground storage tank and pump station adjacent to the existing IH 35 elevated storage tank to provide storage capacity that can be filled during non-peak hours of the day. o Project Status: Design o Projected Completion: Fall 2027 o Project Cost: Design $728,068 ($800,000 NTE), Construction Estimate (including land acquisition $13,750,000 o Consultant: Unintech Consulting Engineers, Inc. o Contractor: TBD Project Update: Unintech is working to incorporate staff comments into the engineering report and will begin the preliminary design of the proposed ground storage tank and pump station. 15. Dedicated Transmission Main 24” Project Description – Construction of a 24” dedicated water transmission main to connect the Live Oak water storage facility to the IH 35 storage tank. o Project Status: Design 90% complete, resuming Easement Acquisition Negotiations o Projected Completion: to be determined o Project Cost: Design $2,502,060, Easement Acquisition $1,000,000, Construction $28,572,940 o Consultant: Kimley-Horn & Associates Project Update: Project was placed on hold and shifted to future budget years but is currently expected to resume pending award of a grant through the Texas Water Development Board (TWDB) Water Supply Infrastructure Grant (WSIG), the application for which was authorized by Council on July 7, 2026. 16. Lift Station Decommissioning Project Description – Decommissioning of Elbel and Whisper Branch Lift Stations including regulatory documentation and physical demolition and abandonment. The project also includes the development of a lift station decommissioning standard guidance document that can be used by the City for future lift station decommissioning projects. o Project Status: Design o Projected Completion: TBD o Project Cost: Design $49,635 Construction Estimate TBD o Consultant: Utility Engineering Group o Contractor: TBD Project Update: No change since last update. UEG is working on the preliminary design for the decommissioning and a draft of the guidance document. Staff has provided some decommissioning needs of the electrical components at each site. Street Projects: 1. Main Street Improvements Project Project Description – The project will improve sidewalks, provide street lighting, way-finding signage, landscaping, utility relocations, and architectural elements such as decorative concrete, decorative lighting, screening, and area signage. This project will also replace aging water and sanitary sewer mains and reconstruct the street with a new, stronger pavement section. Additionally, Lindbergh between Main and Exchange will be reconstructed. o Project Status: Design o Projected Completion: Fall 2028 o Project Cost: $25,880,893 o Consultant: Kimley- Horn Associates Project Update: No change from last month. Utility outreach is ongoing and the project scope is being increased some. Some modifications to the Aviation Boulevard/FM 1518 intersection to improve the right turn movement from FM 1518 to Aviation Boulevard will be added to the project. 2. Lookout Road Reconstruction Project Description – The project involves reconstruction of Lookout Road from Schertz Parkway to Doerr Lane. A traffic signal at the Lookout Road/Schertz Parkway intersection will also be installed. The project also includes the replacement and upsizing the existing sanitary sewer main in Lookout Road from Doerr Lane to Schertz Parkway. o Project Status: Design o Projected Completion: Fall 2027 o Project Cost: Design $571,000 ($20,000 from Selma), Construction estimate $6,738,092 ($100,000 from Selma) o Design Consultant: Halff Associates, Inc. Project Update: The design amendment to shift the Schertz Parkway alignment will be presented to Council for approval later this month. We have closed on the Right-of-Way acquisition for the Republic Distributing site. We have agreement with CAT for the Right-of-Way needed form their site and the documents are going through their legal team so we can close on that parcel. Staff will be providing a project update to the EDC Board in the near future. 3. Lower Seguin Road Reconstruction Project Description – The project will reconstruct a 2.9-mile segment of Lower Seguin Road to widen and improve the street to the section identified in the Master Thoroughfare Plan. The City intends to pursue Federal DCIP funding for project construction. o Project Status: Design o Projected Completion: Fall 2028 o Project Cost: $18,200,000 o Consultant: Halff Associates, Inc. Project Update: We expect to hear the results of our DCIP funding application towards the end of this month. The next funding call for DEAGG funding will be early September. We will be submitting a revised application for funding form that program. Right-of-Way and Easement acquisition for the project is underway, and the project plans continue to be refined. 4. Buffalo Valley South Resurfacing and Rehabilitation and Utility Replacements Project Description – Water and sanitary sewer main replacements and street rehabilitation of Buffalo Valley South, specifically Mill Street, 1st St, 2nd St, Bowman St, Lee St, Church St, Zuehl St, and Wuest. PCI data was used to select the streets in the project. Project will be funded with a combination of SPAM funding (for the street rehabilitation) and ARP funding for the utility replacement. o Project Status: Construction o Projected Completion: April 16 (Substantial Completion) o Project Cost: $5,977,000 o Design Consultant: Unintech Consulting Engineering o Contractor: E-Z Bel Construction, LLC Project Update: The contractor is nearly finished with all the punch list items. Staff is scheduling another full project walkthrough to verify the punch list completion early this month. A brief ribbon cutting marking the project completion is scheduled for August 18th, before the Council Meeting. Additional details will be provided to Council closer to the 18th. 5. Boenig Drive Reconstruction Project Description – Reconstruction of Boenig Drive between Ware Seguin Road and Graytown Road. The reconstruction includes reconfiguration of the intersection with Ware Seguin Road to improve efficiencies and eliminate having two street intersections side-by side on Ware Seguin Road. o Project Status: Design o Projected Completion: Spring 2027 o Project Cost: $3,240,000 o Consultant: Unintech Consulting Engineers, Inc. Project Update: The utility conflicts have been fully identified and explained to the utility companies. CPS is in the process of going through their process to relocate their facilities out of the way of the project. Their process is expected to take a few months to complete, which will cause a delay in getting the project out to bid. We anticipate bidding the project in early January. If CPS is able to complete their work sooner, we will be able to bid the project sooner. 6. 2024 SPAM Rehabilitation Project Description – Rehabilitation of St. Andrews, Maple, and part of the Silvertree Subdivision streets. Rehabilitation involves removing the existing pavement, applying cement stabilizing to the material underneath, and placing a new layer of pavement on the street. o Project Status: Construction o Projected Completion: Summer 2026 o Project Cost: $3,581,000 o Consultant: Kimley-Horn Associates o Contractor: E-Z Bel Construction, LLC Project Update: The recent rains have caused some delays in the project. The paving in Dove Meadows has been completed. Staff has done a more detailed walkthrough of the Dove Meadows area and distributed fliers to the residents asking them to provide us with any outstanding items so a complete punch list can be provided to the contractor. All of the concrete work has been completed on Maple Drive, and the street work is well underway. Paving is expected to be completed early this month. 7. 2025 SPAM Resurfacing Project Description – Resurfacing of the streets in the Ashley Woods, Woodbridge, and Rio Vista subdivisions. Resurfacing involves performing localized concrete repairs; base repairs; asphalt level up; crack sealing; and applying a slurry seal to the surface of the streets. o Project Status: Design o Projected Completion: Summer 2027 o Project Cost: $1,282,231 o Consultant: Kimley-Horn Associates Project Update: We continue to see project costs increase. As a result, the project scope is still being refined in order to fit within budget. The final scope revisions will likely need to wait until after the Northcliffe Country Club Estates and Robin Hood Way Waterline Replacement projects have been bid, so any “excess funding can be identified and added to the resurfacing project. 8. Kramer Farm Rehabilitation Project Description – Rehabilitation of the western streets in Kramer Farm Subdivision. Rehabilitation involves removing the existing pavement, applying cement stabilizing to the material underneath, and placing a new layer of pavement on the street. o Project Status: Design o Projected Completion: Summer 2027 o Project Cost: $1,446,582 o Consultant: Kimley-Horn Associates Project Update: Final plan changes are expected to be completed this month. Once the changes are completed, the project will go out for bid. 9. 2026 SPAM Resurfacing Project Description – resurfacing of the streets in the Fairway Ridge; Woodland Oaks; and Horseshoe Oaks Subdivisions. The project also includes the TSAC-recommended crosswalk improvements. o Project Status: Design o Projected Completion: Summer 2027 o Project Cost: $1,780,000 o Consultant: Kimley-Horn Associates Project Update: We continue to see project costs increase. As a result, the project scope is still being refined in order to fit within budget. The final scope revisions will likely need to wait until after the Northcliffe Country Club Estates and Robin Hood Way Waterline Replacement projects have been bid, so any “excess funding can be identified and added to the resurfacing project. 10. Savannah Drive Overlay Project Description – Resurfacing of Savannah Drive from the Selma City Limits to FM 3009. o Project Status: Construction o Projected Completion: Spring 2027 o Project Cost: $1,460,000 o Consultant: Kimley-Horn Associates Project Update: No change from last month. Final plan comments have been provided, and the final changes are being made to the bid package. Once the changes are completed, the project will go out for bid. 11. FM 3009 Overpass Project Description – TxDOT project for overpass construction at the FM 3009/FM 78 intersection to elevate the main lanes of FM 3009 over the railroad tracks and FM 78. On and off ramps will be provided so vehicles can travel between FM 3009 and FM 78 at the intersection. The project includes some improvements to FM 78 to improve operational efficiencies of the on and off ramps. o Project Status: Schematic Design and Environmental Clearance o Projected Completion: TBD o Project Cost: $100,000,000 (TxDOT) o Consultant: Kimley-Horn Associates Project Update: TXDOT is preparing for a public outreach meeting for the project. They expect to hold the meeting in September. Once we know the date of this meeting, we will provide it to Council and the public. Parks & Recreation Projects: 1. Schertz Soccer Complex Irrigation Water Storage Project Project Description – Upgrading electrical components, upsizing well pump and piping, and adding storage capacity for irrigation of the Schertz Soccer Complex. o Project Status: Under Construction o Projected Completion: Fall 2026 o Project Cost: $200,000 (estimated total) o Consultant: Unintech Engineering o Contractor: Kutscher Drilling and Specified Water Systems Project Update: The first draw was submitted to Specified Water Systems for production of the tank, and it is in stock at the warehouse yard. The contractor is waiting on the liner to ship so it can be installed in the tank. The contractor is working on scheduling the pad pour for the tank and acquiring the proper permits. Installation of the tank and final connections should be made in August. I.T. Projects: 1. Asset Management- Work Order System – Open Gov Project Description- Replace the current work order and asset management systems o Project Status: In progress o Projected Completion: Fall 2025 o Project Cost: Approximately $470,000 o Contractor: Open Gov Project Update: Parks, Street, and Drainage staff is currently working in the sandbox test environment. Due to turnover in the GIS department, the newly hired GIS staff is working closely with the contractor and their GIS consulting team in training them on OpenGov and transferring maps and in-field assets into the new system. Studies and Plans: 1. Master Thoroughfare Plan and Roadway Impact Fee Update Project Description – Update to City’s Master Thoroughfare Plan and Roadway Impact Fee Program. o Project Status: Study o Projected Completion: Schedule Pending o Total Project Cost: $149,460 ($170,000 NTE) o Consultant for Study: Kimley-Horn Associates Project Update: The draft fee report is still being worked on. Some of the elements in the report are taking longer to complete than originally anticipated. After further consideration, Staff decided to expand the public outreach effort for the update. The first public outreach effort will be a “targeted group” later this month. Additional outreach meeting dates are being developed. Staff expects to have an outreach schedule completed later this month. 2. Southern Schertz Interim Sewer Service Study Project Description – Until the completion of expansion of the CCMA South Water Reclamation Plant, treatment capacity in southern Schertz is severely limited. This project is a study to identify potential short-term and long-term sewer service treatment options for the City’s southern service area. o Project Status: Study o Projected Completion: Schedule Pending o Total Project Cost: $59,695 o Consultant for Study: Utility Engineering Group Project Update: Staff and the consultant continue to evaluate potential solutions to provide interim capacity. It was determined that a temporary package treatment plant is likely not a viable option due to a conflict with CCMA’s current and future permits for discharge in the same watershed (mid Cibolo Creek). 3. Regional Flood Planning Staff has been collecting and sharing information including previous studies, maps, photographs, and anecdotal accounts of flood events with the AECOM, the consultant preparing the Flood Management Evaluation (FME). Progress meetings are being scheduled. TxDOT Roadway Projects: Note: If links do not work, please contact engineering@schertz.com 1. FM 1103 Improvement Project: Construction officially began in November 2022 and was originally expected to be complete in fall 2026. Minor progress is being made on the roadway while utility relocation continues. General project updates are available by signing up at this link: FM 1103 Construction Newsletter 2. FM 1518 Improvement Project: SER Construction, LLC, formally began construction on April 9, 2024. The contractor has leased property owned by the City on Schaefer Road to stage construction activities. The first few months of the project will be mainly underground utility construction and will mostly take place outside travel lanes. While there may be some delays, major traffic disruptions should not be experienced much during this phase of the project. The project is currently anticipated to be completed in 2028. Updates regarding the FM 1518 project are available by visiting and subscribing at the following link: FM 1518 Expansion 3. IH-35 NEX (I-410 South to FM 1103): The central segment of the I-35 Northeast Expansion project continues with Alamo NEX Construction handling the design-build project. The central section runs from 410 N to FM 3009. Utility coordination work for the northern segment of the project is underway. TxDOT consultants have met with Public Works and Engineering Staff to begin establishing relocation needs. The City will be reimbursed for the costs of all relocations needed except for any upsizing or improvements above current conditions. Updates about the project can be obtained by signing up at the following link: I 35 NEX Project Updates 4. IH-10 Graytown Road to Guadalupe County Line: Work for the widening of the main lanes and utility relocations continues. Work on the FM 1518 bridge over IH 10 continues and will involve numerous episodes of the rerouting of traffic including shifting lanes and detours as necessary. Updates regarding the IH 10 project are available by signing up at the following link: IH 10 Expansion Information