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02-28-2023 Agenda Packet       MEETING AGENDA City Council REGULAR SESSION CITY COUNCIL February 28, 2023                                   HAL BALDWIN MUNICIPAL COMPLEX CIVIC CENTER GRAND BALLROOM 1400 SCHERTZ PARKWAY BUILDING #5 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, FEBRUARY 28, 2023 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 Whittaker)   Proclamations:  Career and Technology Education Month - March 2023 National Employee Appreciation Day - March 4, 2023   City Events and Announcements  Announcements of upcoming City Events (B. James/S. Gonzalez) Announcements and recognitions by the City Manager (S. Williams) Announcements and recognitions by the Mayor (R. Gutierrez)   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 February 28, 2023  City Council Agenda                                Page 1     be requested to leave the meeting. 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.   1.Minutes – Consideration and/or action regarding the approval of the following minutes from the regular meeting on February 7, 2023. (S. Edmondson/S.Courney)   2.Appointment/Reappointment For Boards/Commissions/Committees:  Accept resignation of Robert Durham of the Schertz Historical Preservation Committee. (S. Edmondson)    3.Resolution 23-R-14 - Consideration and/or action approving a Resolution by the City Council of the City of Schertz, TX, to approve an agreement with Southwest Regional Advisory Council (STRAC) to participate in the EMS Workforce Education Funding Program. (S. Williams/J. Mabbitt)   4.Resolution 23-R-15 – Consideration and/or action approving a Resolution by the City Council of the City of Schertz, TX, to approve an agreement with SHIELD616 to participate in the SHIELD616 Program. (S. Williams/J. Mabbitt)   5.Resolution No. 23-R-03 - Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas authorizing the City Manager to sign on behalf of the City of Schertz, applications to replat Lot 1, Block 41 of the Live Oak Hills  Addition as part of the proposed Heritage Oaks Subdivision. (S. Williams/B. James)   6.Resolution No.23-R-17- Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas, accepting the semi-annual report with respect to the progress of the Capital Recovery Capital Improvements Plan, and other matters in connection therewith.  (B. James/K. Woodlee)   7.Resolution 23-R-08 – Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas authorizing the City Manager to enter into agreements with Maldonado Nursery & Landscaping and Brightview Landscape Services, for landscape maintenance of medians, parkways, and public ground (S. Gonzalez/L. Shrum)   8. February 28, 2023  City Council Agenda                                Page 2     8. Resolution No. 23-R-18 - Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas approving a request for a Schertz Main Street Local Flavor Economic Development Grant for 817 Main Street. (S.Williams/B. James)   Discussion and Action Items   9.Resolution No. 23-R-20 - Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas approving and authorizing a CCN transfer between the City of Selma and City of Schertz to amend CCN boundaries and other matters in connection therewith. (B. James/L. Busch/S. Mayfield)   10.Resolution No. 23-R-19 - Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas accepting the Annual Comprehensive Financial Report - ACFR Fiscal Year 2021-22. (S. Gonzalez/J. Walters)   Workshop   11.Annual Racial Profiling Report PD - 2022   Public Hearings   12.Ordinance No. 23-S-01 - Conduct a public hearing and consideration and/or action on a request to rezone approximately 12.5 acres of land from Planned Development District (PDD) to Planned Development District (PDD), generally located approximately 1,500 feet southwest of the intersection between Schertz Parkway and Maske Road, City of Schertz, Guadalupe County, Texas, also known as the Windy Meadows Subdivision Unit 4. First Reading (B. James, L. Wood, E. Delgado)   13.Ordinance No. 23-S-02 - Conduct a public hearing and consideration and/or action on a request to rezone approximately 25 acres of land from Pre-Development District (PRE) to Planned Development District (PDD), generally located approximately 2,200 feet southeast of the intersection of Country Club Boulevard and IH-35 access road, also known as a portion of Comal County Property Identification Number 377261 and Guadalupe County Property Identification 63833, City of Schertz, Comal County and Guadalupe County, Texas. First Reading (B. James, L. Wood, E. Delgado)   Roll Call Vote Confirmation   Information available in City Council Packets - NO DISCUSSION TO OCCUR   14.Quarterly Investment Reports   15.Mayor and Council Compensation. (S. Gonzalez/J. Walters)   February 28, 2023  City Council Agenda                                Page 3     Requests and Announcements  Announcements by the City Manager 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   Announcements by Mayor and Councilmembers    City and Community Events attended and to be attended City Council Committee and Liaison Assignments (see assignments below) Continuing Education Events attended and to be attended Recognition of actions by City Employees Recognition of actions by Community Volunteers   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 24TH DAY OF FEBRUARY 2023 AT 4:30 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 _______________, 2023. 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 Gutierrez Audit Committee Board of Adjustments Investment Advisory Committee Main Street Committee Senior Center Advisory Board-Alternate Councilmember Davis– Place 1 Interview Committee for Boards and Commissions Main Street Committee - Chair Parks & Recreation Advisory Board Schertz Housing Authority Board Transportation Safety Advisory Commission February 28, 2023  City Council Agenda                                Page 4      TIRZ II Board  Councilmember Watson-Place 2 Audit Committee Library Advisory Board Senior Center Advisory Board Cibolo Valley Local Government Corporation-Alternate   Councilmember Whittaker – Place 3 Historical Preservation Committee Interview Committee for Boards and Commissions TIRZ II Board    Councilmember Dahle – Place 4 Cibolo Valley Local Government Corporation Interview Committee for Boards and Commissions Planning & Zoning Commission TIRZ II Board Councilmember Scagliola – Place 5 Animal Advisory Commission - Alternate Hal Baldwin Scholarship Committee Schertz-Seguin Local Government Corporation   Councilmember Heyward – Place 6 Animal Advisory Commission Audit Committee Building and Standards Commission Economic Development Corporation - Alternate Investment Advisory Committee Main Street Committee Interview Committee for Boards and Commissions-Alternate Senior Center Advisory Board-Alternate   Councilmember Brown – Place 7 Economic Development Corporation Main Street Committee Schertz-Seguin Local Government Corporation - Alternate      February 28, 2023  City Council Agenda                                Page 5     Agenda No. 1.   CITY COUNCIL MEMORANDUM    City Council Meeting:February 28, 2023 Department:City Secretary Subject: Minutes – Consideration and/or action regarding the approval of the following minutes from the regular meeting on February 7, 2023. (S. Edmondson/S.Courney) BACKGROUND RECOMMENDATION Recommend Approval.  Attachments Minutes 02-07-2023  D R A F T MINUTES REGULAR MEETING February 7, 2023 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on February 7, 2023, at 6:00 p.m. in the Hal Baldwin Municipal Courtroom, 1400 Schertz Parkway, Building #2, Schertz, Texas. The following members present to-wit: Present:Mayor Ralph Gutierrez; Mayor Pro-Tem Tim Brown; Councilmember Mark Davis; Councilmember Michelle Watson; Councilmember Jill Whittaker; Councilmember Michael Dahle; Councilmember David Scagliola; Councilmember Allison Heyward City Staff: City Manager Steve Williams; Deputy City Manager Brian James; Assistant City Manager Sarah Gonzalez; City Secretary Sheila Edmondson; City Attorney Daniel Santee          Call to Order Mayor Gutierrez called the meeting to order at 6:01 p.m.   Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas. (Councilmember Davis) Mayor Gutierrez recognized Councilmember Mark Davis who provided the opening prayer followed by the Pledges of Allegiance to the Flags of the United States and State of Texas.   Appointment of the Mayor Pro-Tem - Discussion and consideration and/or action regarding the confirmation, appointment or election of the Mayor Pro-Tem. (Mayor/Council) Mayor Gutierrez explained the position, duties, and term of the Mayor Pro-Tem. Mayor Gutierrez called for a motion to elect Councilmember Tim Brown to serve as Mayor Pro-Tem from February 2023 to July 2023.       Moved by Councilmember David Scagliola, seconded by Councilmember Jill Whittaker  AYE: Councilmember Allison Heyward, Councilmember Mark Davis, Councilmember Michelle Watson, Councilmember Jill Whittaker, Councilmember Michael Dahle, Councilmember David Scagliola, Mayor Pro-Tem Tim Brown Passed   City Secretary Sheila Edmondson administered the Oath of Office for the Mayor Pro-Tem to 1 City Secretary Sheila Edmondson administered the Oath of Office for the Mayor Pro-Tem to Councilmember Tim Brown.   Presentations Mayor Gutierrez read and presented the following proclamation. San Antonio Stock Show & Rodeo Proclamation Ms. Barbara Hall spoke on behalf of the Stock Show and Rodeo ambassadors. She listed the events they attend and that they have awarded 220 students in Guadalupe County with scholarships.   Employee Recognition Allison Gorzell-20 Years of Service Karen Bowerman-20 Years of Service City Manager Steve Williams recognized and thanked Allison Gorzell for 20 Years of Service for Schertz in the EMS Department and Karen Bowerman for 20 Years of Service at the Schertz Library. Employee Introductions Mayor Gutierrez recognized CIty Department Heads who introduced their new employees. Public Works-Fleet: Logan Allen-Fleet Mechanic Public Works-Streets: Nancy Oritiz-Street Worker 1 Purchasing Department: Angela Perrone-Purchasing Specialist Neighborhood Services: Cody Raines-Enforcement Officer Parks Department: Sydney Paredes-Recreation Coordinator; Michael Stornellie-Parks Maintenance Technician EMS: Nathaniel De Leon-EMT; Ryan Moore-EMT; Terran Jaramillo-EMT; Aidan Martin-EMS (P/T); Ethan Hydes-EMT Inspections: Isabel Womack-Permit Technician; Sarah Rodriguez-Permit Technician   City Events and Announcements Announcements of upcoming City Events (B. James/S. Gonzalez) Mayor Gutierrez recognized Deputy City Manager Brian James who provided the following information: Thursday, February 9, 2023 Annual Trail Rider Lunch Pickrell Park 11:30 a.m. Northeast Partnership Luncheon Olympia Hills Golf Course and Conference Center 2 11:30 a.m. Saturday, February 11, 2023 Nature Discovery Series Discover Recycling and Preserving Water Crescent Bend Nature Park 10:00 a.m. - noon Announcements and recognitions by the City Manager (S. Williams) Mayor Gutierrez recognized City Manager who recognized the well deserved promotion of Sarah Gonzalez to Assistant Manager and Brian James to Deputy City Manager. He also recognition and expressed kudos for City staff for the preparation of the ice days and city office closure. Announcements and recognitions by the Mayor (R. Gutierrez) Mayor Gutierrez recognized staff for the work they did during the office closure to ensure the community was well served..   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. Mayor Pro-Tem Tim Brown recognized the following: Daniel Jameson, 1048 Richmond Dr, Schertz expressed kudos to EMS for their quick response when called to the aid of his father who suffers from congestive heart failure. Adela Lugo, Cibolo, frequents Senior Center in Schertz. Filed formal objection regarding the Advisory Board election held in July 2022, and feels the objection has been ignored. Kevin Majors, 10320 Gage Connell, Reserve of Schertz Subdivision. Concern regarding drainage system erosion that is causing property damage, specifically to residents' fences. Expressed kudos to Police Chief for increased patrols and to Public Works Department for addressing the lighting issues.   Consent Agenda Items 3 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. Mayor Gutierrez read Items #1-3 for the record.   1.Minutes – Consideration and/or action regarding the approval of the following minutes: (S. Edmondson) Regular Council Meeting: January 10, 2023 Special Council Meeting (Canvass): January 17, 2023 Special Council Meeting (City Secretary Interviews): January 18, 2023 Regular Council Meeting: January 24, 2023      2.Appointment/Reappointment Reappointment of Ms. Barbara Hall to the Schertz Historical Preservation Committee. (S. Edmondson)      3.Resolution 23-R-09 - Consideration and action approving a Resolution by the City Council of the City of Schertz, Texas, to approve a request for expenditures not to exceed $200,000.00 with Farrwest Specialty Vehicles for the purchase and installation of emergency equipment for patrol fleet vehicles. (S.Williams/J.Lowery/D.Roman)       Moved by Councilmember Allison Heyward, seconded by Mayor Pro-Tem Tim Brown  AYE: Mayor Pro-Tem Tim Brown, Councilmember Mark Davis, Councilmember Michelle Watson, Councilmember Jill Whittaker, Councilmember Michael Dahle, Councilmember David Scagliola, Councilmember Allison Heyward Passed   Discussion and Action Items   4.Resolution 23-R-11 - A resolution by the City Council of the City of Schertz selecting Tyler Technologies ERP Pro 10 as its new financial software. (S.Gonzalez/J.Walters) Mayor Gutierrez recognized James Walters, Finance Director, who explained the need to upgrade the financial software and the steps taken to select the best product for the City. Budget was approved in FY2021-22 cycle. Bids were received in Summer 2022. Comparison review was done using a scoring system of 30% for qualifications, 35% for proposed services, and 35% for cost. ERP 10 chosen based on    4 the scoring. Benefits include no increase in annual support costs and ability to migrate past 22 years of financial data from the current system to the new one. Additionally, staff proposes adding content manager module to increase efficiencies and moving Utility Billing and Court modules to the new system which results in a $21,000 annual cost savings from support services that will no longer be needed.    Moved by Mayor Pro-Tem Tim Brown, seconded by Councilmember Allison Heyward  AYE: Councilmember Mark Davis, Councilmember Michelle Watson, Councilmember Jill Whittaker, Councilmember Michael Dahle, Councilmember David Scagliola, Councilmember Allison Heyward Passed   5.Resolution 23-R-12 - A resolution by the City Council of the City of Schertz stating their support for waiving penalties and fees on unpaid property taxes for ceratin properties. (S. Gonzalez/J.Walters) Mayor Gutierrez proposed waiving of penalties and interest accumulated on unpaid property taxes of a property under consideration for purchase by the City.       Moved by Councilmember David Scagliola, seconded by Councilmember Michael Dahle  AYE: Councilmember Mark Davis, Councilmember Michelle Watson, Councilmember Jill Whittaker, Councilmember Michael Dahle, Councilmember David Scagliola, Councilmember Allison Heyward Passed   Workshop   6.Workshop discussion on graffiti awareness, abatement and prevention (B.James/L.Wood) Mayor Gutierrez recognized Lesa Wood, Planning and Community Development Director. Ms. Wood stated she is working on the graffiti abatement and prevention with Police Chief Lowery. Chief Lowerybegan by providing the legal definition of graffiti, the level of offense, and recent graffiti statistics, including arrests, for the City of Schertz. Ms. Wood stated that in September 2009 the State Legislature mandated municipalities and county governments to offer free graffiti removal. In August 2022 the City saw an uptick in incidences primarily along FM 1518 and I-10. To provide increased communication with victims, the city has added the Graffiti Abatement Program information to the website.    5 Chief Lowery closed the workshop by stating the need to encourage residents and businesses to file complaints. Restitution and punishment are contingent upon community involvement. Councilmember Whittaker requested clarification on a couple of points and expressed her thanks for the work being done. Councilmembers Heyward and Dahle expressed kudos for the work staff is doing on this issue. Councilmember Scagliola stated the perception visitors have when they see graffiti is not usually favorable and expressed support for the work being done by City staff to eradicate it. Mayor Gutierrez and Councilmember Davis asked for clarification on the requirement for police reports and whether the city could file a report as a victim since there is a cost for the mandated abatement. Dan Santee, City attorney addressed questions regarding the state statutes for abatement.   7.Schertz Area Senior Center Operations Review Workshop Discussion (S. Gonzalez/L. Shrum) Mayor Gutierrez recognized Lauren Shrum, Parks and Recreation Director. Ms. Shrum stated that the Senior Center is open to residents of Schertz and surrounding communities age 50 and up, current membership is at 736, annual membership fee is $36/individual or $62/couple, and management contract is under the YMCA. Day to day operations are under the YMCA. City of Schertz is responsible for providing membership software and retaining membership revenue, in addition to contract oversight, maintenance, utilities, and landscaping. Councilmember Davis stated he requested the presentation because there appears to be a significant disconnect between City Staff, the contractor, and the Advisory Board. No responsibilities outlined for the Advisory Board. He asked what the vision is going forward. He suggested three action items: (1) that the roles and responsibilities be consolidated into one guide; (2) conduct a survey to be done sooner and sent to council before its disseminated; and (3) assign a Council liaison to the Senior Center Advisory Board. Councilmember Scagliola said that he appreciated that the YMCA stepped up to manage the day-to-day operations but expressed his vision that the Senior Center would be more autonomous and run by the members with a little help from the City. Councilmembers Dahle, Whittaker, and Heyward all not only addressed the need to review, refine, and follow the contract, but also need for continued support. Mayor Gutierrez summed up Council remarks and addressed the need for the surrounding cities to contribute to the operational costs since residents of their cities are benefiting from membership.    6 are benefiting from membership.   8.Council Liaison Board/Commission/Committee (S.Edmondson/J.Whittaker) Mayor Gutierrez asked Council if there were any Liaison positions on Boards/Commissions/Committees that they would like to relinquish: Councilmember Whittaker asked to be removed from the Audit Committee and Library Advisory Board. Councilmember Scagliola requested to be removed as an alternate from the Cibolo Valley Local Government Corporation and the Interview Committee for Boards and Commissions. Councilmember Heyward requested to be added as an alternate to the Interview Committee for Boards and Commissions. Councilmembers Davis and Dahle requested no changes. Mayor Pro-Tem requested no changes. Mayor Gutierrez assigned Councilmember Watson to serve as the Liaison for the Audit Committee, Library Advisory Board, and Senior Center Advisory Board; and as an Alternate to the Cibolo Valley Local Government Corporation and the Interview Committee for Boards and Commissions. Mayor Gutierrez assigned Councilmember Heyward as an alternate to the Senior Center Advisory Board and the Interview Committee for Boards and Commissions. Mayor Gutierrez will serve as an alternate to the Senior Center Advisory Board.      Roll Call Vote Confirmation Mayor Gutierrez recognized City Secretary Sheila Edmondson who provided roll call on Agenda Items #1-5.   Information available in City Council Packets - NO DISCUSSION TO OCCUR   9.Monthly Update on FY 2022-23 Approved Expanded Programs (S. Williams/S. Gonzalez)      10.Quarterly Financial Reports FY 2021-22 3rd and 4th Quarter(S.Gonzalez/J.Walters)     11.Monthly Update on Major Projects in progress/CIP (B. James/K. Woodlee)     Requests and Announcements 7 Requests and Announcements Announcements by the City Manager No announcements were made. Requests by Mayor and Councilmembers for updates or information from Staff No requests for updates or information from Staff were made. Requests by Mayor and Councilmembers that items or presentations be placed on a future City Council agenda No request for items or presentations to be placed on a future City Council agenda. Announcements by Mayor and Councilmembers City and Community Events attended and to be attended Councilmember Davis attended the TSAC. Councilmember Whittaker attended Schertz Historicsal Preservation Committee meeting. Councilmember Dahle attended the Coffee with the Chamber. Councilmember Scagliola attended the Walk on Country Club Blvd, Rodeo Riders Lunch on Thursday at Pickrell Park, and Frost Bank Cowboy Breakfast Councilmember Heyward attended the TML Risk Pool Board Meeting (3-day event), will be attending a Risk Pool Conference in Orlando in March, attended Gil Durant's Retirement Ceremony, Ribbon Cutting for INspiring Hope and Gratitude at The Chamber, AAMPO Bike Month Working Meeting, Schertz Development Sub-committee, and the Mother/Son - Daddy/Daughter dance, City Council Committee and Liaison Assignments (see assignments below) Continuing Education Events attended and to be attended Recognition of actions by City Employees Recognition of actions by Community Volunteers   Adjournment Mayor Gutierrez adjourned the meeting at 8:30 p.m.   _______________________________ Ralph Gutierrez, Mayor ATTEST: ____________________________________ Sheila Edmondson, City Secretary 8 9 Agenda No. 2.   CITY COUNCIL MEMORANDUM    City Council Meeting:February 28, 2023 Department:City Secretary Subject:Appointment/Reappointment For Boards/Commissions/Committees: Accept resignation of Robert Durham of the Schertz Historical Preservation Committee. (S. Edmondson) BACKGROUND The City Council held a Regular City Council meeting on _______________. Agenda No. 3.   CITY COUNCIL MEMORANDUM    City Council Meeting:February 28, 2023 Department:Emergency Medical Services Subject:Resolution 23-R-14 - Consideration and/or action approving a Resolution by the City Council of the City of Schertz, TX, to approve an agreement with Southwest Regional Advisory Council (STRAC) to participate in the EMS Workforce Education Funding Program. (S. Williams/J. Mabbitt) BACKGROUND The Texas legislature, through SB8, has provided DSHS (Department of State Health Services) $21.7 million dollars for funding education and recruitment programs for EMS.  DSHS has distributed these funds to the RACs across Texas.  STRAC received $2 million to assist EMS agencies.  STRAC is accepting applications from EMS agencies to provide paramedic training for their EMTs. Schertz EMS is seeking to apply as a sponsor for up to six (6) EMT's.  Applications are being processed on a first come, first served basis. Individuals desiring a scholarship for EMS Education must be sponsored by an EMS Transport Provider operating within the STRAC region.  All recipients of EMS Workforce dollars will be required to work at least 96 hours per month on an ambulance for either 1 year (EMT Certification) or 2 years (AEMT or Paramedic Certification). Recipients that do not successfully complete their education or fulfill their post-certification work requirements will be required to repay their scholarship funds. STRAC will make scholarship payments to the EMS Sponsoring Agency (City) prior to the student starting the course. The scholarship is to cover education, books, necessary materials, and the student's cost for one National Registry examination process at the following maximum amounts. City is required to provide proof of education payments back to STRAC for all funds received.  Amount paid will be the lesser of actual costs or these amounts per course: $2,000 - Emergency Medical Technician (includes $98 fee for NR exam) $3,200 - Advanced Emergency Medical Technician (includes $136 fee for NR exam) $8,000 – Paramedic (includes $152 fee for NR exam)     GOAL To approve an agreement to apply for a scholarship to provide paramedic training for up to six of our EMTs. COMMUNITY BENEFIT To increase paramedic staffing providing Advanced Level Support (ALS) to the citizens we serve.   SUMMARY OF RECOMMENDED ACTION Consideration and action approving a Resolution to approve an agreement with Southwest Regional Advisory Council (STRAC) to participate in the EMS Workforce Education Funding Program. FISCAL IMPACT The scholarship will provide up to $8,000 for each EMT accepted.  As a sponsoring agency, Schertz EMS will be reimbursed for tuition, books and testing fees.  The only cost not reimbursed will be the cost for the school uniform (~$100) and State certification ($96) per EMT.   RECOMMENDATION Recommended that City Council approve Resolution 23-R-14.   Attachments Resolution 23-R-14  Application  FAQs  RESOLUTION NO. 23-R-14 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS TO APPROVE AN AGREEMENT WITH SOUTHWEST REGIONAL ADVISORY COUNCIL (STRAC) TO PARTICIPATE IN THE EMS WORKFORCE EDUCATION FUNDING PROGRAM. WHEREAS, the City of Schertz EMS provides ambulance services to the City of Schertz and other surrounding communities and emergency services districts; and WHEREAS, the City of Schertz EMS employs Emergency Medical Technicians (EMT’s); and WHEREAS, the Texas Legislature, through Senate Bill 8, is providing $21.7 million to distribute towards funding EMS education and retention; and WHEREAS, Southwest Regional Advisory Council (STRAC) is accepting applications to provide funding for EMTs to attend paramedic school; and WHEREAS, Schertz EMS has a need for more paramedics. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1.The City Council hereby authorizes an agreement with Southwest Regional Advisory Council (STRAC) to participate in the EMS Workforce Education Funding Program. Section 2.The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3.All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4.This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5.If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6.It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7.This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 28th day of February, 2023. CITY OF SCHERTZ, TEXAS ________________________________ Ralph Gutierrez, Mayor ATTEST: _______________________________ Sheila Edmondson, City Secretary EMS Workforce Education Funding Application Packet, October 2022 EMSWorkforce@strac.org 1 EMS Workforce Education Funding Process & Application Packet EMS Workforce Education Funding Application Packet, October 2022 EMSWorkforce@strac.org 2 The 87th Texas Legislature, through Senate Bill 8, provided DSHS with $21.7M funding for the recruitment of EMS personnel. DSHS has in turn provided STRAC with approximately $2.0M to assist with the education and recruitment of EMS personnel through training and outreach. In accordance with Senate Bill 8, 65% of the funding is reserved for rural counties , defined as counties with a population under 50,000. Applications will be processed on a first come, first served basis. Individuals desiring a scholarship for EMS Education must be sponsored by an EMS Transport Provider operating within the STRAC region. All recipients of EMS Workforce dollars will be required to work at least 96 hours per month on an ambulance for either 1 year (EMT Certification) or 2 years (AEMT or Paramedic Certification). Recipients that do not successfully complete their education or fulfill their post-certification work requirements will be required to repay their scholarship funds. If you are an EMS Transport Provider, please complete this packet for potential recipients you want to sponsor and email it to EMSWorkforce@strac.org. If you would like more information on how to become sponsored by an EMS transport provider or to locate an agency that could sponsor you, email EMSWorkforce@strac.org and we will help you. STRAC will make scholarship payments to the EMS Sponsoring Agency prior to the student starting the course. The scholarship is to cover education, books, necessary materials, and the student's cost for one National Registry examination process at the following maximum amounts. Amount paid will be the lesser of actual costs or these amounts per course: $2,000 - Emergency Medical Technician (includes $98 fee for NR exam) $3,200 - Advanced Emergency Medical Technician (includes $136 fee for NR exam) $8,000 – Paramedic (includes $152 fee for NR exam) EMS Workforce Education Funding Application Packet, October 2022 EMSWorkforce@strac.org 3 Completed Packet Checklist Required documentation: ☐ Scholarship Application ☐ EMS Sponsoring Agency Information ☐ Education Entity Information ☐ Proof of enrollment ☐ Enrollment course fee schedule and book ISBN number and cost ☐ EMS Sponsoring Agency/Scholarship Applicant Agreement EMS Workforce Education Funding Application Packet, October 2022 EMSWorkforce@strac.org 4 EMS Education Funding Process STEP 1 - The EMS Agency has agreed to be the Sponsor for the Scholarship Applicant (e.g., pre- employment verification, background check, drug screening, scholarship packet, hiring, post exam follow up). A DSHS approved EMS provider course has been located and proof of acceptance, cost of tuition and educational materials/books has been sent to the EMS Sponsor Agency. Scholarship Applicant signs commitment to volunteering/working a minimum of 96 hours per month for EMS Sponsoring Agency after certification is achieved to remain eligible for scholarship. STEP 2 - EMS Sponsor Agency provides completed application packet to STRAC (EMSWorkforce@strac.org ) showing proof of enrollment and educational costs due to the education entity for training class and educational material (not to include student uniform, lab coat, required equipment, etc.). Course must begin after scholarship award to be eligible. STEP 3 - STRAC approves the application packet and issues scholarship check to the EMS Sponsoring Agency to pay for the tuition and educational materials on behalf of the Scholarship Recipient. The EMS Sponsoring Agency sends proof of payment back to STRAC. NOTE: Scholarship Recipient becomes a student, attends, and passes class. STEP 4 – Within 90 days of course completion, Scholarship Recipient takes National Registry (NR) exam, passes exam, completes TX DSHS requirements for certification (fees not reimbursable by this program) and secures employment from sponsoring agency. If Scholarship Recipient passes National Registry exam on first attempt, STRAC will validate and provide an incentive to the education entity (See Payment Appendix). If Scholarship Recipient does not pass National Registry exam on first attempt, student will need to reschedule test and pay for any additional attempts made. STEP 5 – Scholarship Recipient becomes Volunteer/Employee for EMS Sponsoring Agency and begins volunteering/ working a minimum of 96 hours per month on an ambulance for the duration of the commitment. A signed agreement to provide EMS in an ambulance for one (1) year for EMT and two (2) years for AEMT and Paramedic within 90 days of the last official day of class will be submitted with initial application packet. At the end of the commitment period, EMS Sponsoring Agency will sign an affidavit of completion and submit a copy to STRAC. If the Scholarship Recipient does not complete the class or does not fulfill the time requirement for working on an ambulance, the Scholarship Recipient will be required to repay the scholarship to the EMS Sponsoring Agency. EMS Workforce Education Funding Application Packet, October 2022 EMSWorkforce@strac.org 5 Application Requirements A complete EMS Application Packet submitted to STRAC by the EMS Sponsoring Agency will include: ➢ EMS Sponsoring Agency Information ➢ Education Entity Information ➢ Signed Scholarship Applicant Agreement EMS Sponsor Agency Information • Name of EMS Sponsoring Agency • EMS Sponsoring Agency Administrator of Record or Chief • Address • County • Name of Applicant(s) being sponsored • Type of course • Start and end dates to complete the course prior to submitting the application. o EMT max of 120 days to complete o AEMT max of 240 days to complete o Paramedic max of 365 days to complete • Work Commitment must start within 90 days of completion of the course. • Agency completing application must have: o A valid Taxpayer Identification Number (SSN, ITIN, EIN) o Be in good standing with the state o If applicable, franchise tax account status must be active • If the above information or forms are not submitted and completed, your application request may be delayed. • These funds must not be supplanting current budgetary funds. Education Entity Information • EMS course approval number provided by DSHS must be supplied on the application • The education entity must be in good standing with DSHS • Course coordinator’s contact information • Proof of enrollment • Documented program fees for tuition and books EMS Workforce Education Funding Application Packet, October 2022 EMSWorkforce@strac.org 6 Scholarship Application EMS Sponsoring Agency Information 1. EMS Sponsor Agency: 2. EMS Sponsor Agency Administrator: 3. Physical address (Street, City, Zip): 4. Mailing address, if different from physical (PO box, city, zip): 5. Agency Admin Email Address: 6. EMS Provider Phone: 6. EMS Provider License Number: 7. County or counties you serve: 8. Name of Medical Director: 9. Medical Director phone (Office or Cell): 10. Medical Director email address: 11. Number of Students Sponsoring: EMS Workforce Education Funding Application Packet, October 2022 EMSWorkforce@strac.org 7 Education Entity Information 1. Name of Education Entity: 2. Name of course coordinator: 3. Physical address (Street, City, Zip): 4. Mailing address, if different from physical (PO box, city, zip): 5. Phone (Office): 6. Phone (Fax): 7. DSHS Education Entity ID#: 8. Email address: 9. County of Course: 10. Type of Course*: 11. DSHS Course Approval Number: 12. Course start and end date**: 13. Copy of program fees*** and book cost *Choose one: EMT, AEMT, Paramedic ** EMT max of 120 days, AEMT max of 240 days, Paramedic max of 365 days to complete from start *** Enrollment course fee schedule and book ISBN number and cost EMS Workforce Education Funding Application Packet, October 2022 EMSWorkforce@strac.org 8 Scholarship Applicant Agreement (One per Applicant) 1. Name of Scholarship Applicant: 2. Mailing Address: 3. City, State, Zip: 4. County: 5. Phone: 6. Email: 7. EMS Sponsoring Agency: 8. Employment Type: Volunteer / Employment 9. Commitment Range: (e.g., May 22, 2023, to May 22, 2024/2025) I, _____________________________________ (scholarship applicant), confirm that, in return for receiving EMS scholarship funds under the 87th Texas Legislature, Senate Bill 8, I will successfully complete the EMS Education class, the NREMT certification examination, Texas DSHS Certification and fulfill the ambulance work requirements as selected below. I understand that failure to complete any of these obligations will require the repayment of the scholarship funds that I have been granted. I also understand that failure to repay these funds may cause the Texas Department of State Health Services (DSHS) to take administrative action against me, including but not limited to tuition repayment. My application is for the following Education Program with the associated years of ambulance service. (Initial one)  EMT – One year  AEMT – Two years  Paramedic – Two years Signature of Scholarship Applicant Printed Name EMS Sponsor Agency Representative Signature EMS Sponsor Agency Representative Printed Date Background To support the field of emergency medical services (EMS), the Texas Legislature is providing $21.7 million to distribute towards funding EMS education and retention. Scholarships are provided by DSHS to approved EMS education programs or licensed EMS providers. Scholarships are available based on documented need, with special attention given to rural and underserved areas within Texas. Courses can be in-person, online, or hybrid. Students Q: Where can I obtain information about EMS training scholarships that are available in my area of the state? A: Use this map to identify the Regional Advisory Council (RAC) that serves your county and contact them to request information about available EMS scholarships in your area. Q: What can be paid for using scholarship funds? A: Scholarship funds can be used towards your education, education material and the ability to take the National Registry of Emergency Medical Technicians (NREMT) examination for the first time only. Q: What cannot be paid for using scholarship funds? A: Scholarship funds cannot be used towards your student uniform, lab coat, required equipment, etc. or towards your state certification. Q: Can I receive education to move from Emergency Medical Technician (EMT) to Advanced Emergency Medical Technician (AEMT) consecutively, and receive funding? A: Yes. Q: I have one year left on my volunteer/employment obligation in this program. I accept another job offer with an out-of-state ambulance. What happens? A: Contact the Regional Advisory Council office or the EMS-Trauma Systems Unit. Funding will need to be returned to the sponsoring agency or entity. Frequently Asked Questions EMS Education and Training Scholarships in Texas Frequently Asked Questions –EMS Education and Training Scholarships in Texas Students (Cont.) Q: What happens to my tuition or any remaining balance if the education program closes without notice and I cannot finish my course? Who do I contact for help? A: You can contact the Regional Advisory Council that processed the scholarship or the EMS-Trauma Systems Unit for assistance with completing the scholarship requirements. Q: If I’m working or volunteering for a DSHS-licensed EMS provider on an ambulance, community paramedic program, or special event response, will these hours count toward my service requirement? A: Yes, so long as you are working or volunteering for a current Texas-licensed EMS provider. Education Programs Q: How will programs be able to use awarded incentives? Are there any restrictions or must it go towards direct costs? A: There are no restrictions on how an EMS Education program uses the awarded incentives. Q: Does the funding for one National Registry of Emergency Medical Technicians (NREMT) examination include funding for psychomotor (skills) testing at the Advanced Emergency Medical Technician (AEMT) and paramedic level? A: Yes, this includes one skills exam session. Q: May an education program get the incentive for a non-scholarship student? Example: A community college has twenty students in a paramedic course with two students on scholarship. How much of an incentive payment are they eligible for? A: Only the students receiving scholarships through the approved education program qualify for the incentive. Q: What must an EMS education program include when applying for scholarships? A: The minimum requirement to receive the student scholarship must include tuition, books, and the fee to take the NREMT exam the first time. An EMS education program is not prohibited from providing additional resources to the students. Q: Who is eligible to receive the scholarship incentive? A: The EMS education program will receive the incentive through the EMS provider or the regional advisory council (RAC). EMS Providers Q: May time employed or volunteering with my local fire department on the fire truck or rescue unit count toward the volunteer or employment obligation? A: You may only count time volunteering or employed on a Texas Department of State Health Services (DSHS) licensed ambulance. Frequently Asked Questions –EMS Education and Training Scholarships in Texas EMS Providers (Cont.) Q: What happens if someone becomes injured on or off the job and cannot complete the obligation to volunteer or work on an ambulance? A: You may extend the requirement time until they are able to work. If they are unable to work, contact the Regional Advisory Office that processed the scholarship for assistance. Q: What happens if a scholarship recipient has not fulfilled their volunteer or employment obligation and accepts a job offer with an out-of-state ambulance service? A: Contact the Regional Advisory Council office or the EMS-Trauma Systems Unit; funding will need to be returned to the sponsoring agency or entity. Q: Are EMS providers that provide 911 and/or inter-facility transports both eligible to receive scholarships under this program? A: Yes, both are eligible to participate if they are a current Texas-licensed EMS provider. Q: Are first responder organizations eligible to participate in this program? A: The initial scholarship awards are for students working for EMS providers only. The department may review and consider recognized first responder organizations in the future. Regional Advisory Councils (RACs) Q: Who is eligible for the funding? A: All education programs and/or EMS providers currently licensed by DSHS. Q: May time employed or volunteering with a local fire department on the fire truck or rescue unit count toward the volunteer or employment obligation? A: No. Funds can only be distributed to DSHS approved education programs and/or EMS providers for the benefit of students participating in the scholarship program. Q: What happens to scholarship funds if a student does not complete the education program? A: The EMS education program that received the scholarship can redistribute the funds to additional EMS education resources or participants if the initial recipient cannot complete the process. Please contact the EMS-Trauma Systems Unit for questions. Q: What happens with collected funds? A:The Education Provider or the EMS Provider can redistribute the funds to additional EMS education resources or participants if the initial recipient cannot complete the process. Please contact the EMS-Trauma Systems Unit for questions. dshs.texas.gov/Team-Texas-EMS Agenda No. 4.   CITY COUNCIL MEMORANDUM    City Council Meeting:February 28, 2023 Department:Emergency Medical Services Subject: Resolution 23-R-15 – Consideration and/or action approving a Resolution by the City Council of the City of Schertz, TX, to approve an agreement with SHIELD616 to participate in the SHIELD616 Program. (S. Williams/J. Mabbitt) BACKGROUND Schertz EMS provides medical support to Schertz SWAT and Guadalupe County SWAT.  These medics are trained to provide care under fire.  Body armor is provided to these medics to protect them from the elements associated with protecting our SWAT officers.  Schertz EMS budgets for replacement gear and are always looking for grants/donations to continue to purchase this equipment.  We recently found a donation program that provides this equipment.  If approved and accepted, there is no cost to the City for the donated equipment.    Shield616 is a non-profit organization that accepts donations from the community and in-turn purchases the armor and donates it to fire, police and EMS agencies. We have identified a donor who is willing to provide funding for two sets of body armor (roughly $10,000 in actual costs). GOAL To provide body armor to our SWAT medics at no cost to the City.   COMMUNITY BENEFIT Having medics on scene of high-risk scenes where SWAT has been activated benefits not only our officers, but to the citizens we serve as care can be provided immediately.   SUMMARY OF RECOMMENDED ACTION Consideration and action approving an agreement with SHIELD616 to participate in the SHIELD616 Program. RECOMMENDATION Recommended that City Council approve Resolution 23-R-15.   Attachments Agreement  Resolution 23-R-15  SHIELD616 AGENCY PARTICIPATION AGREEMENT By participating in the SHIELD616 program, the following terms and conditions must be understood and agreed upon by the Fire Chief or EMS Chief. SHIELD616 expressly disclaims any and all liabilities, losses, costs, claims, demands, suits, or actions of any type or nature whatsoever arising from or in anyway related to: the equipment donated, the use of said equipment, any implied manufacture warranties and any intended or unintended uses of donated equipment regardless as to what the equipment is. The Agency/Person receiving equipment donated by SHIELD616 assumes all responsibility for its use and operations. Any and all implied factory warranties are to be taken up directly with the manufacture of the donated equipment. By participating in the SHIELD616 program, I also understand and agree the donated equipment is considered agency property and will be added to the agency’s inventory. In the event the receiving individual leaves the agency under any circumstance; the donated equipment shall remain with the agency. Any equipment donated by family members can be released at the discretion of the Agency Chief or Sheriff, ONLY, if the departing individual is hired at another Police, Sheriff, Fire or EMS Department at time of departure. _________________________________________________________________________________________ Signature / Printed Name _________________________________________________________________________________________ Rank _________________________________________________________________________________________ Department Name _________________________________________________________________________________________ Work Email / Work Telephone _________________________________________________________________________________________ Date 13395 Voyager Pkwy. Ste. 130 #516 C/S, CO. 80921 (719) 345-2442 www.shield616.org RESOLUTION NO. 23-R-15 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS TO APPROVE AN AGREEMENT WITH SHIELD616 TO PARTICIPATE IN THE SHIELD616 PROGRAM. WHEREAS, the City of Schertz EMS provides ambulance services to the City of Schertz and other surrounding communities and emergency services districts; and WHEREAS, the City of Schertz EMS maintains a SWAT medic program; and WHEREAS, the City of Schertz EMS provides medical support to both Schertz SWAT and to Guadalupe County SWAT; and WHEREAS, the City provides the necessary equipment to offer protection for the SWAT medics; and WHEREAS, Schertz EMS has identified a program to provide this equipment at no cost to the City. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1.The City Council hereby authorizes an agreement with SHIELD616 to participate in the SHIELD616 Program. Section 2.The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3.All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4.This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5.If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6.It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7.This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 28th day of February, 2023. CITY OF SCHERTZ, TEXAS ________________________________ Ralph Gutierrez, Mayor ATTEST: _______________________________ Sheila Edmondson, City Secretary Agenda No. 5.   CITY COUNCIL MEMORANDUM    City Council Meeting:February 28, 2023 Department:Executive Team Subject: Resolution No. 23-R-03 - Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas authorizing the City Manager to sign on behalf of the City of Schertz, applications to replat Lot 1, Block 41 of the Live Oak Hills Addition as part of the proposed Heritage Oaks Subdivision. (S. Williams/B. James) BACKGROUND In May 2021, the City Council approved a rezoning associated with the Heritage Oaks project. Heritage Oaks is to be a single family residential development on approximately 66 acres of land, located on the west side of Schertz Parkway, on the north and south sides of Wiederstein Road. The Owner, has spent decades acquiring lots in this area, that was platted as part of the larger Live Oak Hills Subdivision prior to the area being annexed into the City. Live Oak Hills is a paper subdivision, meaning the lots are created and roads are platted, but the infrastructure needed to serve the lots was never constructed.  In order to redevelop the property, the developer is proposing to abandon the existing right-of-way and replat the property. The developer is planning to realign Wiederstein Road and adjust the lotting pattern, abandoning some rights-of-way and dedicating new streets.  The City owns a number of lots in the vicinity of Heritage Oaks that are part of the Live Oaks Hills Subdivision. The developer is proposing to utilize one of the lots the City owns, Lot 1, block 41 for a drainage channel/easement and right-of-way. In order this to occur, the City would have to authorize the lot to be included in the replat.  The City is not using the property for anything at this time and has no real need for the property. The City appears to have acquired the property in 1986, but staff is not clear why. There is a cost maintain the property, mow and clean up trash and if not incorporated as a drainage easement and right-of-way. The City will likely be pressured by the future residents of Heritage Oaks to maintain it at a much higher level. Providing for the orderly development of the City and adequate infrastructure, including roads and drainage is a role of the City, so including it in the replat furthers this public purpose. GOAL Provide for the orderly redevelopment of property within the City of Schertz. COMMUNITY BENEFIT Provides for the redevelopment of property in the City of Schertz that is currently underutilized. Reduce costs for the City associated with the maintenance of City owned parcels in the vicinity. Allow for the redevelopment of property that negatively impacts the community as it serves a site for illegal dumping.   SUMMARY OF RECOMMENDED ACTION Approval of Resolution 23-R-03 authorizing the City Manager to sign off on the replat applications and any necessary right-of-way abandonment applications associated with the Heritage Oaks Subdivision.  FISCAL IMPACT There is little or no fiscal impact to the City.  RECOMMENDATION Approval of Resolution 23-R-03. Attachments Lot 1 Block 41 City owned  Resolution 23-R-03  RESOLUTION NO. 23-R-03 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE CITY MANAGER TO SIGN ON BEHALF OF THE CITY OF SCHERTZ, APPLICATIONS TO REPLAT LOT 1, BLOCK 41 OF THE LIVE OAK HILLS ADDITION AS PART OF THE PROPOSED HERITAGE OAKS SUBDIVISION. WHEREAS, the Live Oak Hills Subdivision was platted in the 1960’s prior to the property being annexed into the City of Schertz; and WHEREAS, the Live Oak Hills Subdivision, is a paper subdivision, lacking adequate infrastructure including roads, water and sewer to support development of the existing lots; and WHEREAS, the right-of-way for the streets in the Live Oak Hills Subdivision do not provide for adequate width to provide necessary turn arounds required for emergency vehicles; and WHEREAS, the City of Schertz City Council in May 2021 approved a request to rezone a portion of the Live Oak Hills Subdivision to PDD - Planned Development District to allow for the redevelopment of the property as Heritage Oaks; and WHEREAS, the approved master plan for Heritage Oaks proposed to replat the property, realigning, abandoning and dedicating new streets and creating a new lot pattern that provides for necessary infrastructure and access by emergency response vehicles; and WHEREAS, the City of Schertz owns Lot 1, Block 41 of the Live Oak Hills Subdivision, and WHEREAS, Lot 1, Block 41 cannot be developed for lack of infrastructure and the City of Schertz is required to maintain the property including cleaning up illegally dumped materials; and WHEREAS, developer of Heritage Oaks is proposing to utilize Lot 1, Block 41 as a drainage and utility easement and right-of-way; and WHEREAS, the incorporation of Lot 1, Block 41 is consistent with the City’s role in providing for infrastructure and will likely reduce the costs associated with maintaining the property. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the City Manager to sign any necessary development applications to allow Lot 1, Block 41 of the Live Oak Hills Subdivision to be replatted and redeveloped as right-of-way, drainage and utility easements as part of the Heritage Oaks Development. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 28th day of February, 2023. CITY OF SCHERTZ, TEXAS ________________________________ Ralph Gutierrez, Mayor ATTEST: _______________________________ Sheila Edmondson, City Secretary (city seal) Agenda No. 6.   CITY COUNCIL MEMORANDUM    City Council Meeting:February 28, 2023 Department:Engineering Subject: Resolution No.23-R-17- Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas, accepting the semi-annual report with respect to the progress of the Capital Recovery Capital Improvements Plan, and other matters in connection therewith. (B. James/K. Woodlee) BACKGROUND Section 395.058 (c) (4) of the Texas Local Government Code requires the Capital Improvements Advisory Committee (CIAC) to file semi-annual reports with respect to the progress of the capital improvement plan and report to City Council any perceived inequities in implementing the plan or imposing impact fees.  Section 90-158 of the City's Code of Ordinances includes the same requirement.  During the February 8, 2023 meeting, the CIAC received the semi-annual report covering April 1, 2022, through September 30, 2022, and recommended approval to City Council. Active projects and associated expenses that are funded using Impact Fee Funds this period were as follows: Water  Corbett Ground Storage Tank  Expenses 2nd Half FY22:  Professional services - $124,820.80 Status:  Project bid.  Construction contract award delayed due to delays in grant funding process. City-wide Water Master Plan and Impact Fee Update Study  Expenses 2nd Half FY22:  Professional services - $33,356.18 Status:  Water system model being finalized, projected future demands being developed based on future land use assumptions. Ware Seguin to Lower Seguin and Graytown to Pheil Loop Lines  No expenses in FY22.  Design underway. Sewer  Woman Hollering Creek Wastewater Project  Expenses 2nd Half FY22:  $3,886,885.47  Professional services - $218,712.78 Construction - $3,668,172.69 Status:  Construction continuing, all borings complete, force main installation complete, gravity main installation ongoing, lift station wet well and storage well construction underway.  Supply chain delays impacting electrical components, alternate interim solutions being evaluated. City-wide Wastewater Master Plan and Impact Fee Update Study  Expenses 2nd Half FY22:  Professional services - $12,938.37 Status:  Wastewater system model being finalized, projected capacity demands based on future land use assumptions being developed. Roadway  All Service Areas: Final invoice for Professional Services for work on amendment to Capital Improvement Plan to account for areas newly annexed to the City.  (Full cost of the amendment expended in two separate fiscal years has been spread equally across all four service areas.)  Expenses 2nd Half FY22: $2,353.25 Status:  Complete   GOAL The goal of Resolution 23-R-17 is Council acceptance of the semi-annual report regarding capital recovery funds for the second half of fiscal year 2021-2022. COMMUNITY BENEFIT The benefit of the semi-annual report process and acceptance of the report is compliance with State law and the City's Code of Ordinances to ensure that capital recovery fees are being collected and spent appropriately. SUMMARY OF RECOMMENDED ACTION Approval of Resolution 23-R-17 accepting the Capital Recovery Semi-Annual Report as recommended by the CIAC. RECOMMENDATION Staff recommends that City Council approve Resolution 23-R-17 accepting the Capital Recovery Semi-Annual Report as recommended by the CIAC. Attachments Resolution 23-R-17  Capital Recovery Report 2nd Half FY22  CIAC Feb. 8 2023 Minutes  RESOLUTION NO. 22-R-17 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, ACCEPTING THE SEMIANNUAL REPORT WITH RESPECT TO THE CAPTIAL RECOVERY CAPTIAL IMPROVEMENT PLANS, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the Capital Improvements Advisory Committee (CIAC) has reviewed the revenue and expenditures relating to the established Capital Recovery Fees in accordance with the Capital Improvements Plans for the City of Schertz; and WHEREAS, the City Council accepts the Semiannual Reports as filed by the CIAC in accordance with Texas Local Government Code Chapter 395; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, THAT: Section 1. The City Council hereby accepts the Capital Recovery Balance Report with respect to the Capital Improvement Plans for the City of Schertz, Texas, for the period between April 1, 2022 through September 30, 2022, as shown in the attached report and minutes of the February 8, 2023, City of Schertz Capital Improvements Advisory Committee meeting. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 28th day of January, 2023. CITY OF SCHERTZ, TEXAS ________________________________ Ralph Gutierrez, Mayor ATTEST: _______________________________ Sheila Edmondson, City Secretary (city seal) CITY OF SCHERTZ CAPITAL RECOVERY IMPACT FEE REPORT April 1, 2022 TO September 30, 2022 ************** IMPACTS FEES ************** Water Sewer Total Beginning Allocated Impact Fee Balance 1 243,038.30 7,947,267.99 8,190,306.29 Net Change in Allocted Impact Fees 4,105,997.90 (2,398,670.55)1,707,327.35 Ending Allocated Impact Fee Balance 4,349,036.20 5,548,597.44 #9,897,633.64 Beginning Unallocated Impact Fee Balance 8,707,384.51 307,655.83 9,015,040.34 Revenues: Impact Fees 384,895.76 177,139.48 562,035.24 Transfer In 0.00 0.00 0.00 Interest Earned 686.99 6,405.97 7,092.96 Investments Income 58,891.50 48,494.20 107,385.70 Expenses: Professional Services 33,356.18 12,938.37 46,294.55 Auditor/Accounting Services 1,000.00 1,000.00 2,000.00 Investment Mgt Fee - Sewer 0.00 4,121.01 4,121.01 Transferred Out 4,230,818.70 0.00 4,230,818.70 Total Revenue Over/(Under) Expense (3,820,700.63)213,980.27 (3,606,720.36) Ending Unallocated Impact Fee Balance 4,886,683.88 521,636.10 5,408,319.98 Estimated Cost of Unfunded Projects Loop Lines 981,076.00 Capital Impact Fee Study - Water 78,417.12 Capital Impact Fee Study - Sewer 97,902.49 Cibolo West Trunk Line 6,000,000.00 Total Unfunded Project Costs 1,059,493.12 6,097,902.49 7,157,395.61 Unfunded Projects to Ending Unallocated Impact Fee Balance 2 3,827,190.76 (5,576,266.39)(1,749,075.63) 1 2 Negative Unfunded Projects to Ending Impact Fee Balance to be funded by future revenues or through other sources Allocated Impact Fee Balances only include Capital Recovery funds and not funds from any other source. It also assumes Capital Recovery Funds are used first when allocated. Capital Improvements Program SE Quad Pump Station SE Quad GST SE Quad Elevated Tank SE Quad Distribution Mains NE Quad Distribution Mains IH10 Corridor Distribution Mains Original Cost Estimate 1,688,289$ 1,100,000$ 1,250,000$ 1,700,000$ 1,600,000$ 1,000,000$ Current Project Designation Corbett Ground Storage Tank Corbett Ground Storage Tank- RL2 Corbett Elevated Tank - RL1 Loop Lines - WA1 Current Cost Estimate 5,000,000$ 5,650,000$ 1,806,076$ Capital Recovery Funding/Allocation 2011 2012 2013 12,251.14$ 2014 500.00$ 2015 86,166.10$ 2016 3,050,000.00$ 2017 2018 2019 1,375,000.00$ 2020 2021 512,000.00$ 2022 4,230,818.70$ Capital Recovery Funding Balance -$ 4,742,818.70$ 4,523,917.24$ -$ -$ -$ Other Funding Sources -$ -$ 840,586.46$ 825,000.00$ -$ -$ Total Project Funding Sources -$ 4,742,818.70$ 5,364,503.70$ 825,000.00$ -$ -$ Project Annual Expenses First Half 2012 Second Half 2012 First Half 2013 Second Half 2013 12,251.14$ First Half 2014 6.77$ Second Half 2014 2,081.13$ First Half 2015 980.00$ Second Half 2015 120,233.32$ First Half 2016 87,843.28$ Second Half 2016 22,763.75$ First Half 2017 -$ Second Half 2017 40,403.20$ First Half 2018 6,248.00$ Second Half 2018 7,485.13$ First Half 2019 50,510.63$ Second Half 2019 1,994,741.24$ First Half 2020 1,385,858.48$ Second Half 2020 1,161,122.42$ First Half 2021 172,980.16$ Second Half 2021 114,254.48$ 91,433.48$ First Half of 2022 154,707.22$ -$ Second Half 2022 124,820.80$ -$ Total Expenses -$ 393,782.50$ 5,156,942.13$ -$ -$ -$ Allocated Impact Project Fee Balance -$ 4,349,036.20$ -$ -$ -$ -$ Project Balance -$ 4,349,036.20$ 207,561.57$ 825,000.00$ -$ -$ Project Status Future Future Ongoing Future Future Future Capital Recovery Water Projects Capital Improvements Program Original Cost Estimate Current Project Designation Current Cost Estimate Capital Recovery Funding/Allocation 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Capital Recovery Funding Balance -$ -$ -$ 487,848.00$ 7,795,000.00$ -$ Other Funding Sources Bond 2007 931,739.74$ Bond 2013 3,000,000.00$ Total Project Funding Sources Project Annual Expenses First Half 2012 Second Half 2012 First Half 2013 Second Half 2013 First Half 2014 Second Half 2014 First Half 2015 Second Half 2015 First Half 2016 Second Half 2016 First Half 2017 Second Half 2017 First Half 2018 Second Half 2018 First Half 2019 Second Half 2019 First Half 2020 Second Half 2020 First Half 2021 Second Half 2021 First Half 2022 Second Half 2022 Total Expenses Allocated Impact Project Fee Balance Project Balance Project Status 3,886,885.47$ -$ -$ 6,615.06$ -$ -$ 98,737.52$ 143,307.30$ 41,375.48$ -$ -$ -$ 152,267.99$ 5,396,329.45$ -$ 5,398,670.55$ -$ -$ 931,739.74$ -$ 335,580.01$ Future Complete Future On Going On Going Future -$ -$ -$ 152,267.99$ 5,396,329.45$ -$ 225,106.41$ 225,595.33$ 56,860.59$ 68,609.20$ 212,479.83$ 247,870.62$ 83,983.26$ 6,220.00$ 4,048.18$ 33,784.40$ 121,438.32$ 815,683.00$ 38,315.41$ 5,858.72$ 5,382.50$ 46,690.62$ 34,775.84$ 28,743.00$ 61,364.70$ 980.00$ 17,032.55$ 49,861.30$ 82,262.17$ 10,795,000.00$ 487,848.00$ -$ 931,739.74$ -$ -$ -$ 7,795,000.00$ 487,848.00$ 931,740$ 487,848$ 12,000,000$ 6,000,000.0$ Capital Recovery Sewer Projects Final South Sewershed Master Plan Town Creek Phase III Town Creek Phase IV Woman Hollering Creek STP PH II South Schertz Trunk Lines and Lift Station South Schertz Trunk Lines and Lift Station Town Creek Phase III - QA3 Crossvines Batch Plant Expansion - QA4 Woman Hollering Trunk Line - QA2/Q01 Cibolo West Truck Line 15,000$ 659,126$ 1,000,000$ 600,000$ 9,600,000$ -$ -$ -$ 16,123.52$ CITY OF SCHERTZ ROADWAY IMPACT FEE REPORT April 1, 2022 TO September 30, 2022 Area 1 Area 2 Area 3 Area 4 Total Beginning Allocated Impact Fee Balance 0.00 0.00 0.00 0.00 0.00 Net Change in Allocted Impact Fees 0.00 0.00 0.00 0.00 0.00 Ending Allocated Impact Fee Balance 0.00 0.00 0.00 0.00 0.00 Beginning Unallocated Impact Fee Balance 621,973.43 317,789.58 1,122,343.96 6,567.35 2,068,674.32 Revenues: Impact Fees 178,943.60 242,936.75 52,572.00 0.00 474,452.35 Transfer In 0.00 0.00 0.00 0.00 0.00 Interest Earned 26.40 46.91 22.46 2.60 98.37 Investments Income 5,615.79 3,842.83 8,951.14 71.56 18,481.32 Expenses: Development Incentive Fund 0.00 0.00 0.00 0.00 0.00 Professional Services 588.29 588.32 588.32 588.32 2,353.25 Auditor/Accounting Services 0.00 0.00 0.00 0.00 0.00 Transferred Out 0.00 0.00 0.00 0.00 0.00 Total Revenue Over/(Under) Expense 183,997.50 246,238.17 60,957.28 (514.16)490,678.79 Ending Unallocated Impact Fee Balance 805,970.93 564,027.75 1,183,301.24 6,053.19 2,559,353.11 ******************** ROADWAY IMPACTS FEES ******************** CAPITAL IMPROVEMENTS ADVISORY COMMITTEE MINUTES February 8, 2023 The Schertz Capital Improvement Advisory Committee convened on February 8, 2023, at 6:00 p.m. at the Municipal Complex, Municipal Courtroom, 1400 Schertz Parkway Building #1, Schertz, Texas. Present: Glen Outlaw, Chairman; Ernie Evans, Vice Chairman; Richard Braud, Commissioner; Gordon Rae, Commissioner; Roderick Hector; Commissioner; Tamara Brown, Commissioner; Judy Goldick, Commissioner; Bryan L. Jones, Board Member Absent: John Carbon, Commissioner; Patrick McMaster, Commissioner; Mark Penshorn, Board Member City Staff: Kathy Woodlee, City Engineer Larry Busch, Acting Public Works Director Emily Delgado, Planning Manager Samuel Haas, Senior Planner Tiffany Danhof, Administrative Assistant 1. CALL TO ORDER / ROLL CALL THE CAPITAL IMPROVEMENT ADVISORY COMMITTEE MEETING Chairman Mr. Outlaw called the meeting to order at 6:00 P.M. 2. SEAT ALTERNATE TO ACT IF REQUIRED No one was seated as the alternate. 3. HEARING OF RESIDENTS This time is set aside for any person who wishes to address the Capital Improvement Advisory Committee. Each person should fill out the Speaker’s register prior to the meeting. Presentations should be limited to no more than three (3) minutes. Discussion by the Committee 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. Residents who choose to watch the meeting via live stream, but who would like to participate in the Hearing of Residents, should email their comments to the Planning Division, at planning@schertz.com by 5:00p.m. on Tuesday, May 24, 2022, so that the Planning Division may read the public comments into the record under the hearing of residents. In the body of the email please include your name, your address, phone number, agenda item number if applicable or subject of discussion, and your comments. No one spoke. 4. PUBLIC HEARING A. Hold a public hearing, consider, and file the semi-annual report evaluating the progress of the City on achieving the capital improvements program and identifying any problems in implementing the plans or administering the capital recovery fees. Kathy Woodlee provided a presentation. Chairman Mr. Outlaw opened the public hearing at 6:11 P.M. No one spoke Chairman Mr. Outlaw closed the public hearing at 6:11 P.M. Motioned by Commissioner Gordon Rae, seconded by Board Member Bryan L. Jones to recommend approval to the City Council. 5. ADJOURNMENT OF THE CAPITAL IMPROVEMENT ADVISORY COMMITTEE MEETING Chairman Mr. Outlaw adjourned the regular meeting at 6:14 P.M. Agenda No. 7.   CITY COUNCIL MEMORANDUM    City Council Meeting:February 28, 2023 Department:Parks, Recreation & Community Servic Subject:Resolution 23-R-08 – Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas authorizing the City Manager to enter into agreements with Maldonado Nursery & Landscaping and Brightview Landscape Services, for landscape maintenance of medians, parkways, and public ground (S. Gonzalez/L. Shrum) BACKGROUND City staff embarked on a Request for Proposals (RFP) process to solicit new vendors for landscape maintenance services for the city's medians, parkways, and public grounds totaling over 400 acres.  The evaluation process criteria included cost to the City, the ability of the contractor to perform the work and analysis of staffing levels, equipment inventory, and past work performance. A total of five responses was received and evaluated by a three member evaluation team.   Brightview Landscape Services and Maldonado Nursery & Landscaping were the highest ranked responses received and determined by the evaluation team to be qualified for award.  GOAL The goal is to award the contracts for mowing and landscape services to Brightview Landscape Services and Maldonado Nursery & Landscaping to continue the current level of service we have in the city regarding our landscape maintenance.  The city campuses and parkways are on a 36 cycle rotation every 7 days and the parks are on a 24 cycle rotation every 14 days.  COMMUNITY BENEFIT The community benefit of contracting landscape maintenance services is that the private sector can perform these tasks at a very efficient level for a low price and this frees up city staff labor to specialize in park maintenance tasks such as trail building, playground safety inspections, pool and splash pad operations, and other special event needs.  The landscape maintenance services can continue on their cycles without interruption from other city needs and priorities that pop up for city staff, and so the residents get a consistent level of service with contracted landscape maintenance services from larger companies with deep benches of 200-400 employees available to service the contract. SUMMARY OF RECOMMENDED ACTION Approve Resolution 23-R-08. FISCAL IMPACT Brightview Landscape is being awarded the city campuses and parkways, medians, and sidewalk properties, and these are on a 36 cycle schedule every 7 days.  Current projections for this contract total $70,372.44 and contingencies in the amount of $9,627.56 for a total not to exceed value of $80,000.00 annually. Maldonado Nursery & Landscaping is being awarded the park properties and these are on a 24 cycle schedule every 14 days.  Current projections for this contract total $136,845.84 and contingencies in the amount of $13,154.16 for a total not to exceed value of $150,000.00 annually.  Funding for the contracts comes from two different sources: General Fund Parks Budget: Contract Services - 101-460-541310 Drainage Fund: Contract Services - 204-579-541310 RECOMMENDATION Approve Resolution 23-R-08. Attachments RES 23-R-08  BRIGHTVIEW AGREEMENT  MALDONADO AGREEMENT  RESOLUTION NO. 23-R-08 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE CITY MANAGER TO ENTER INTO AGREEMENTS WITH MALDONADO NURSERY & LANDSCAPING AND BRIGHTVIEW LANDSCAPE SERVICES FOR LANDSCAPE MAINTENANCE OF MEDIANS, PARKWAYS, AND PUBLIC GROUNDS. WHEREAS, the City staff of the City of Schertz (the “City”) has determined that the City requires landscape maintenance of medians, parkways, and public grounds; and WHEREAS, City staff performed an extensive Request for Proposals process that ranked companies based on experience and references, equipment and resources, cost proposal, and operational plans; and WHEREAS, City staff has determined that Maldonado Nursery & Landscaping and Brightview Landscape Services are qualified to provide such services for the City ; and WHEREAS, the City of Schertz will enter into a three (3) year contract with each vendor with the option to renew for up to two (2) terms of one (1) year each. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the City Manager to enter into the contract with Maldonado Nursery & Landscaping, totaling no more than $150,000.00 for each fiscal year, for landscape maintenance of medians, parkways, and public grounds. Section 2. The City Council hereby authorizes the City Manager to enter into the contract with Brightview Landscape Services, totaling no more than $80,000.00 for each fiscal year, for landscape maintenance of medians, parkways, and public grounds. 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 Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 4. 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 5. This Resolution 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 Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 7. 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 8. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 28th day of February, 2023. CITY OF SCHERTZ, TEXAS Ralph Gutierrez, Mayor ATTEST: Sheila Edmondson, City Secretary CITY OF SCHERTZ PAGE 1 BrightView Landscape Services, Inc Service Agreement CITY OF SCHERTZ SERVICE AGREEMENT THE STATE OF TEXAS § § GUADALUPE COUNTY § This Service Agreement (“Agreement”) is made and entered by and between the City of Schertz, Texas, (the “City”) a Texas municipality, and BrightView Landscape Services, Inc (“Contractor”). Section 1. Duration This Agreement shall become effective upon the date of the final signature affixed hereto and shall remain in effect through September 30, 2025 with the option to renew for two (2) additional terms of one (1) year each unless terminated as provided for in this Agreement. The renewals on this agreement shall not extend beyond September 30, 2027. Section 2. Scope of Work (A) Contractor shall perform the Work as more particularly described in the Scope of Work attached hereto as Exhibit “A”. The work as described in the Scope of Work constitutes the “Project”. (B) The Quality of Work provided under this Agreement shall be of the level of quality performed by Contractors regularly rendering this type of service. (C) The Contractor shall perform its Work for the Project in compliance with all statutory, regulatory and contractual requirements now or hereafter in effect as may be applicable to the rights and obligations set forth in the Agreement. (D) The Contractor may rely upon the accuracy of reports and surveys provided to it by the City except when defects should have been apparent to a reasonably competent Contractor or when it has actual notice of any defects in the reports and surveys. Section 3. Compensation (A) The Contractor shall be paid in full upon completion of the project or in the manner set forth in Exhibit “A” and as provided herein. (B) Billing Period. Subject to Chapter 2251, Texas Government Code (the “Prompt Payment Act”), payment is due within thirty (30) days of the City’s receipt of the Contractor’s invoice. Interest on overdue payments shall be calculated in accordance with the Prompt Payment Act. (C) Reimbursable Expenses. Any and all reimbursable expenses related to the Project shall be included in the scope of Work (Exhibit A) and accounted for in the total contract amount. (D) Payments Subject to Future Appropriation. This Agreement shall not be construed as a commitment, issue, pledge or obligation of any specific taxes or tax revenues for payment to Contractor. CITY OF SCHERTZ PAGE 2 BrightView Landscape Services, Inc Service Agreement (1) All payments or expenditures made by the City under this Agreement are subject to the City's appropriation of funds for such payments or expenditures to be paid in the budget year for which they are made. (2) The payments to be made to Contractor, or other expenditures under this Agreement, if paid, shall be made solely from annual appropriations of the City as may be legally set aside for the implementation of Article III, Section 52-a of the Texas Constitution or Chapter 380 of the Texas Local Government Code or any other economic development or financing program authorized by statute or home rule powers of the City under applicable Texas law, subject to any applicable limitations or procedural requirements. (3) In the event the City does not appropriate funds in any fiscal year for payments due or expenditures under this Agreement, the City shall not be liable to Contractor for such payments or expenditures unless and until appropriation of said funds is made; provided, however, that Contractor, in its sole discretion, shall have the right but not the obligation to terminate this Agreement and shall have no obligations under this Agreement for the year in respect to which said unappropriated funds relate. (4) To the extent there is a conflict of this Section and any other language or covenants in this Agreement, this Section 3 shall control. Section 4. Time of Completion The prompt completion of the Work under the Scope of Work relates is critical to the City. Unnecessary delays in providing Work under a Scope of Work shall be grounds for dismissal of the Contractor and termination of this Agreement without any or further liability to the City other than a prorated payment for necessary, timely, and conforming work done by Contractor prior to the time of termination. Section 5. Insurance Before commencing work under this Agreement, Contractor shall obtain and maintain the liability insurance provided for below throughout the term of the Project plus an additional two years. Contractor shall provide evidence of such insurance to the City. Such documentation shall meet the requirements noted in Exhibit B. Contractor shall maintain the following limits and types of insurance: Workers Compensation Insurance: Contractor shall carry and maintain during the term of this Agreement, workers compensation and employers liability insurance meeting the requirements of the State of Texas on all the Contractor’s employees carrying out the work involved in this contract. General Liability Insurance: Contractor shall carry and maintain during the term of this Agreement, general liability insurance on a per occurrence basis with limits of liability not less than $1,000,000 for each occurrence and for fire damage. For Bodily Injury and Property Damage, coverage shall be no less than $1,000,000. As a minimum, coverage for Premises, Operations, Products and Completed Operations shall be $2,000,000. This coverage shall protect the public or any person from injury or property damages sustained by reason of the Contractor or its employees CITY OF SCHERTZ PAGE 3 BrightView Landscape Services, Inc Service Agreement carrying out the work involved in this Agreement. The general aggregate shall be no less than $2,000,000. Automobile Liability Insurance: Contractor shall carry and maintain during the term of this Agreement, automobile liability insurance with either a combined limit of at least $1,000,000 per occurrence for bodily injury and property damage or split limits of at least $1,000,000 for bodily injury per person per occurrence and $1,000,000 for property damage per occurrence. Coverage shall include all owned, hired, and non-owned motor vehicles used in the performance of this contract by the Contractor or its employees. Subcontractor: In the case of any work sublet, the Contractor shall require subcontractor and independent contractors working under the direction of either the Contractor or a subcontractor to carry and maintain the same workers compensation and liability insurance required of the Contractor. Qualifying Insurance: The insurance required by this Agreement shall be written by non-assessable insurance company licensed to do business in the State of Texas and currently rated "B+" or better by the A.M. Best Companies. All policies shall be written on a “per occurrence basis” and not a “claims made” form. Evidence of such insurance shall be attached as Exhibit “C”. Failure of Certificate Holder to demand a certificate or other evidence of full compliance with these insurance requirements or failure of Certificate Holder to identify a deficiency from evidence that is provided will not be construed as a waiver of Insured’s obligation to maintain such insurance. Section 6. Miscellaneous Provisions (A) Subletting. The Contractor shall not sublet or transfer any portion of the work under this Agreement or any Scope of Work issued pursuant to this Agreement unless specifically approved in writing by the City, which approval shall not be unreasonably withheld. Subcontractors shall comply with all provisions of this Agreement and the applicable Scope of Work. The approval or acquiescence of the City in the subletting of any work shall not relieve the Contractor of any responsibility for work done by such subcontractor. (B) Compliance with Laws. The Contractor shall comply with all federal, state and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts, administrative, or regulatory bodies in any matter affecting the performance of this Agreement, including, without limitation, worker’s compensation laws, minimum and maximum salary and wage statutes and regulations, and licensing laws and regulations. When required, the Contractor shall furnish the City with satisfactory proof of compliance. (C) Independent Contractor. Contractor acknowledges that Contractor is an independent contractor of the City and is not an employee, agent, official or representative of the City. Contractor shall not represent, either expressly or through implication, that Contractor is an employee, agent, official or representative of the City. Income taxes, self-employment taxes, social security taxes and the like are the sole responsibility of the Contractor. (D) Non-Collusion. Contractor represents and warrants that Contractor has not given, made, CITY OF SCHERTZ PAGE 4 BrightView Landscape Services, Inc Service Agreement promised or paid, nor offered to give, make, promise or pay any gift, bonus, commission, money or other consideration to any person as an inducement to or in order to obtain the work to be provided to the City under this Agreement. Contractor further agrees that Contractor shall not accept any gift, bonus, commission, money, or other consideration from any person (other than from the City pursuant to this Agreement) for any of the Work performed by Contractor under or related to this Agreement. If any such gift, bonus, commission, money, or other consideration is received by or offered to Contractor, Contractor shall immediately report that fact to the City and, at the sole option of the City, the City may elect to accept the consideration for itself or to take the value of such consideration as a credit against the compensation otherwise owing to Contractor under or pursuant to this Agreement. (E) Force Majeure. If the performance of any covenant or obligation to be performed hereunder by any party is delayed as a result of circumstances which are beyond the reasonable control of such party (which circumstances may include, without limitation, pending litigation, acts of God, war, acts of civil disobedience, fire or other casualty, shortage of materials, adverse weather conditions [such as, by way of illustration and not of limitation, severe rain storms or below freezing temperatures, or tornados] labor action, strikes or similar acts, moratoriums or regulations or actions by governmental authorities), the time for such performance shall be extended by the amount of time of such delay, but no longer than the amount of time reasonably occasioned by the delay. The party claiming delay of performance as a result of any of the foregoing force majeure events shall deliver written notice of the commencement of any such delay resulting from such force majeure event not later than seven (7) days after the claiming party becomes aware of the same, and if the claiming party fails to so notify the other party of the occurrence of a force majeure event causing such delay and the other party shall not otherwise be aware of such force majeure event, the claiming party shall not be entitled to avail itself of the provisions for the extension of performance contained in this subsection. (F) Conflict of Terms. Scope of work: In the case of any conflicts between the terms of this Agreement within the Scope of Work, this Agreement shall govern. The Scope of Work is intended to detail the technical scope of Work, fee schedule, and contract time only and shall not dictate Agreement terms. Other Agreements between parties: In the case of any conflicts between the terms of this Agreement and wording contained within any other attachment, amendment, and agreement executed between the parties in conjunction with this Agreement, this Agreement shall govern. (G) Non-Boycott of Israel. Pursuant to Section 2270.002 of the Texas Government Code, Contractor certifies that either (i) it meets an exemption criterion under Section 2270.002; or (ii) it does not boycott Israel and will not boycott Israel during the term of the contract resulting from this solicitation. Contractor shall state any facts that make it exempt from the boycott certification as an attachment to this agreement. Relevant definitions from the bill: "Company" means a for-profit sole proprietorship, organization, association, corporation, CITY OF SCHERTZ PAGE 5 BrightView Landscape Services, Inc Service Agreement partnership, joint venture, limited partnership, limited liability partnership, or limited liability company, including a wholly owned subsidiary, majority-owned subsidiary, parent company, or affiliate of those entities or business associations that exists to make a profit. "Boycott Israel" means refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations specifically with Israel, or with a person or entity doing business in Israel or in an Israeli-controlled territory, but does not include an action made for ordinary business purposes. (H) Non-Boycott of Energy. Pursuant to Texas Senate Bill 13 (2021), Contractor certifies that either (i) it does not boycott Israel and will not boycott energy companies; and (2) will not boycott energy companies during the term of the contract resulting from this solicitation. Contractor shall state any facts that make it exempt from the boycott certification as an attachment to this agreement. (I) Non-Boycott of Firearm Entity. Pursuant to Texas Senate Bill 19 (2021), Contractor certifies that it: (a) does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and (b) will not discriminate during the term of the contract against a firearm entity or firearm trade association . (J) Access to Premises. Authorized representatives of the Contractor will be allowed access to the facilities on City premises at reasonable times to perform the obligations of the Contractor regarding such facilities. Contractor shall adhere to all City rules, regulations, and guidelines while on City property. It is expressly understood that the City may limit or restrict the right of access herein granted in any manner considered necessary (e.g., national security, public safety). (K) INTERLOCAL PARTICIPATION The City may enter into Interlocal Cooperation Purchasing Agreements with other governmental entities or governmental cooperatives (hereafter collectively referred to as “Entity” or “Entities”) to enhance the City’s purchasing power. At the City’s sole discretion and option, City may inform other Entities that they may acquire items listed in this IFB. Such acquisition(s) shall be at the prices stated herein, and shall be subject to bidder’s acceptance. Entities desiring to acquire items listed in this IFB shall be listed on a rider attached hereto, if known at the time of issuance of the IFB. City may issue subsequent riders after contract award setting forth additional Entities desiring to utilize this bid. VENDOR shall sign and return any subsequently issued riders within ten calendar days of receipt. In no event shall City be considered a dealer, re-marketer, agent or other representative of Vendor or Entity. Further, City shall not be considered and is not an agent; partner or representative of the Entity making purchases hereunder, and shall not be obligated or liable for any such order. CITY OF SCHERTZ PAGE 6 BrightView Landscape Services, Inc Service Agreement Entity purchase orders shall be submitted to Vendor by the Entity. City will not be liable or responsible for any obligations, including, but not limited to, payment, and for any item ordered by an entity other than City. Vendor authorizes City’s use of Vendor’s name, trademarks and Vendor provided materials in City’s presentations and promotions regarding the availability of use of this contract. The City makes no representation or guarantee as to any minimum amount being purchased by City or Entities, or whether Entity will purchase utilizing City’s contract. Section 7. Termination (A) This Agreement may be terminated: (1) By the mutual agreement and consent of both Contractor and City; (2) By either party, upon the failure of the other party to fulfill its obligations as set forth in either this Agreement or a Scope of Work issued under this Agreement; (3) By the City, immediately upon notice in writing to the Contractor, as consequence of the failure of Contractor to perform the Work contemplated by this Agreement in a timely or satisfactory manner; (4) By the City, at will and without cause upon not less than thirty (30) days written notice to the Contractor. (B) If the City terminates this Agreement pursuant to subsection 7(A)(2) or (3), above, the Contractor shall not be entitled to any fees or reimbursable expenses other than the fees and reimbursable expenses then due and payable as of the time of termination and only then for those Work that have been timely and adequately performed by the Contractor considering the actual costs incurred by the Contractor in performing work to date of termination, the value of the work that is nonetheless usable to the City, the cost to the City of employing another Contractor to complete the work required and the time required to do so, and other factors that affect the value to the City of the work performed at time of termination. In the event of termination not the fault of the Contractor, the Contractor shall be compensated for all basic, special, and additional Work actually performed prior to termination, together with any reimbursable expenses then due. Section 8. Indemnification CONTRACTOR AGREES TO INDEMNIFY AND HOLD THE CITY OF SCHERTZ, TEXAS AND ALL OF ITS PRESENT, FUTURE AND FORMER AGENTS, EMPLOYEES, OFFICIALS AND REPRESENTATIVES HARMLESS IN THEIR OFFICIAL, INDIVIDUAL AND REPRESENTATIVE CAPACITIES FROM ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION, JUDGMENTS, LIENS AND EXPENSES (INCLUDING ATTORNEY'S FEES, WHETHER CONTRACTUAL OR STATUTORY), COSTS AND DAMAGES (WHETHER COMMON LAW OR STATUTORY), COSTS AND DAMAGES (WHETHER COMMON LAW OR STATUTORY, AND WHETHER ACTUAL, PUNITIVE, CONSEQUENTIAL OR INCIDENTAL), OF ANY CONCEIVABLE CHARACTER, FOR INJURIES TO PERSONS (INCLUDING DEATH) OR TO PROPERTY (BOTH REAL AND PERSONAL) CREATED BY, ARISING FROM OR IN ANY MANNER RELATING TO THE CITY OF SCHERTZ PAGE 7 BrightView Landscape Services, Inc Service Agreement WORK OR GOODS PERFORMED OR PROVIDED BY CONTRACTOR – EXPRESSLY INCLUDING THOSE ARISING THROUGH STRICT LIABILITY OR UNDER THE CONSTITUTIONS OF THE UNITED STATES. Section 9. Notices Any notice required or desired to be given from one party to the other party to this Agreement shall be in writing and shall be given and shall be deemed to have been served and received (whether actually received or not) if (i) delivered in person to the address set forth below; (ii) deposited in an official depository under the regular care and custody of the United States Postal Service located within the confines of the United States of America and sent by certified mail, return receipt requested, and addressed to such party at the address hereinafter specified; or (iii) delivered to such party by courier receipted delivery. Either party may designate another address within the confines of the continental United States of America for notice, but until written notice of such change is actually received by the other party, the last address of such party designated for notice shall remain such party's address for notice. Section 10. No Assignment Neither party shall have the right to assign that party's interest in this Agreement without the prior written consent of the other party. Section 11. Severability If any term or provision of this Agreement is held to be illegal, invalid or unenforceable, the legality, validity or enforceability of the remaining terms or provisions of this Agreement shall not be affected thereby, and in lieu of each such illegal, invalid or unenforceable term or provision, there shall be added automatically to this Agreement a legal, valid or enforceable term or provision as similar as possible to the term or provision declared illegal, invalid or unenforceable. Section 12. Waiver Either City or the Contractor shall have the right to waive any requirement contained in this Agreement that is intended for the waiving party's benefit, but, except as otherwise provided herein, such waiver shall be effective only if in writing executed by the party for whose benefit such requirement is intended. No waiver of any breach or violation of any term of this Agreement shall be deemed or construed to constitute a waiver of any other breach or violation, whether concurrent or subsequent, and whether of the same or of a different type of breach or violation. Section 13. Governing Law; Venue This Agreement and all of the transactions contemplated herein shall be governed by and construed in accordance with the laws of the State of Texas. The provisions and obligations of this Agreement are performable in Guadalupe County, Texas such that exclusive venue for any action arising out of this Agreement shall be in Guadalupe County, Texas. Section 14. Paragraph Headings; Construction The paragraph headings contained in this Agreement are for convenience only and shall in no way enlarge or limit the scope or meaning of the various and several paragraphs hereof. Both parties have participated in the negotiation and preparation of this Agreement and this Agreement shall not be construed either more or less strongly against or for either party. Section 15. Binding Effect CITY OF SCHERTZ PAGE 8 BrightView Landscape Services, Inc Service Agreement Except as limited herein, the terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, devisees, personal and legal representatives, successors and assigns. Section 16. Gender Within this Agreement, words of any gender shall be held and construed to include any other gender, and words in the singular number shall be held and construed to include the plural, unless the context otherwise requires. Section 17. Counterparts This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which shall constitute but one and the same instrument. Section 18. Exhibits & Attachments All exhibits and attachments to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. Section 19. Entire Agreement It is understood and agreed that this Agreement, which incorporates the original RFP, Contractor’s Response to RFP, and Purchase Order(s) issued for payment contains the entire agreement between the parties and supersedes any and all prior agreements, arrangements or understandings between the parties relating to the subject matter. No oral understandings, statements, promises or inducements contrary to the terms of this Agreement exist. This Agreement cannot be changed or terminated orally. Order of Precedence. In the event of a conflict between the terms and conditions included in the body of this Agreement and the terms and conditions included in any of the incorporated documents, the order of precedence shall be: (a)Agreement; (b) the attachments and/or exhibits to Agreement, (c)Contractor’s Response to RFP, and (d) Purchase Order(s). Section 20. Relationship of Parties Nothing contained in this Agreement shall be deemed or construed by the parties hereto or by any third party to create the relationship of principal and agent or of partnership or of joint venture or of any association whatsoever between the parties, it being expressly understood and agreed that no provision contained in this Agreement nor any act or acts of the parties hereto shall be deemed to create any relationship between the parties other than the relationship of independent parties contracting with each other solely for the purpose of effecting the provisions of this Agreement. Section 21. Right To Audit City shall have the right to examine and audit the books and records of Contractor with regards to the work described in Exhibit A, or any subsequent changes, at any reasonable time. Such books and records will be maintained in accordance with generally accepted principles of accounting and will be adequate to enable determination of: (1) the substantiation and accuracy of any payments required to be made under this Agreement; and (2) compliance with the provisions of this Agreement. Section 22. Dispute Resolution In accordance with the provisions of Subchapter I, Chapter 271, TEX. LOCAL GOV’T CODE, the CITY OF SCHERTZ PAGE 9 BrightView Landscape Services, Inc Service Agreement parties agree that, prior to instituting any lawsuit or other proceeding arising from a dispute under this agreement, the parties will first attempt to resolve the dispute by taking the following steps: (1) A written notice substantially describing the nature of the dispute shall be delivered by the dissatisfied party to the other party, which notice shall request a written response to be delivered to the dissatisfied party not less than 5 days after receipt of the notice of dispute. (2) If the response does not reasonably resolve the dispute, in the opinion of the dissatisfied party, the dissatisfied party shall give notice to that effect to the other party whereupon each party shall appoint a person having authority over the activities of the respective parties who shall promptly meet, in person, in an effort to resolve the dispute. (3) If those persons cannot or do not resolve the dispute, then the parties shall each appoint a person from the highest tier of managerial responsibility within each respective party, who shall then promptly meet, in person, in an effort to resolve the dispute. Section 23. Disclosure of Business Relationships/Affiliations; Conflict of Interest Questionnaire Contractor represents that it is in compliance with the applicable filing and disclosure requirements of Chapter 176 of the Texas Local Government Code. Certificate of Interested Parties Effective January 1, 2016, pursuant to House Bill 1295 passed by the 84th Texas Legislature (Section 2252.908, Texas Government Code, as amended) and formal rules released by the Texas Ethics Commission (TEC), all contracts with private business entities requiring approval by the Schertz City Council will require the on-line completion of Form 1295 "Certificate of Interested Parties." Form 1295 is also required for any and all contract amendments, extensions or renewals. Contractors are required to complete and file electronically with the Texas Ethics Commission using the online filing application. Please visit the State of Texas Ethics Commission website, https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm and https://www.ethics.state.tx.us/tec/1295-Info.htm for more information. IF YOU HAVE ANY QUESTIONS ABOUT COMPLIANCE, PLEASE CONSULT YOUR OWN LEGAL COUNSEL. COMPLIANCE IS THE INDIVIDUAL RESPONSIBILITY OF EACH PERSON OR AGENT OF A PERSON WHO IS SUBJECT TO THE FILING REQUIREMENT. AN OFFENSE UNDER CHAPTER 176 IS A CLASS C MISDEMEANOR. [The remainder of this page is intentionally left blank.] CITY OF SCHERTZ PAGE 10 BrightView Landscape Services, Inc Service Agreement EXECUTED on this the day of , 20_____ CITY: CONTRACTOR: By: By: Name: Steve Williams Printed Name: Title: City Manager Title: ADDRESS FOR NOTICE: CITY: CONTRACTOR: City of Schertz BrightView Landscape Services, Inc Attn: Steve Williams, City Manager Attn: Jaime Winchester 1400 Schertz Parkway 10902 Gabriel’s Pl Schertz, Texas 78154 San Antonio, Tx 78217 CITY OF SCHERTZ PAGE 11 BrightView Landscape Services, Inc Service Agreement Exhibit “A” SCOPE OF WORK Scope of Work The contractor shall provide all equipment, materials, and personnel necessary to complete the following minimum requirements. 1. Minimum Requirements a) Account Manager: Proposer shall provide the name and full electronic (Phone, Cell, and e-mail) contact information for one Account Manager, dedicated to managing this contract for the City. This individual must be directly accessible to the City’s designated representative, including after normal business hours, for any and all issues pertaining to performance of this contract for the City. Vendor shall notify the City in writing, within one (1) business day of any changes for this contact, with all information necessary to maintain full communication ability. NAME: _________________________________________ TITLE: _________________________________________ OFFICE PHONE: ________________________________ CELL PHONE: __________________________________ EMAIL: ________________________________________ b) Maintenance under this specification shall be performed during daylight hours only. c) Upon completion of each maintenance cycle, the designated contract maintenance properties will be subject to inspection by the Parks and Recreation Department. If the quality or quantity of work does not meet minimum specifications, the job will be rejected, and contractor shall re-perform maintenance to the City's satisfaction, at no additional cost to the City. d) Contractor shall provide written verification, with completion dates of all maintenance for each maintenance cycle. This verification is to be provided to the City, with monthly invoices on the appropriate Contract Mowing Cycle Performance Report (Form A1-A3) as provided by the City in Microsoft Office Excel format via Microsoft Office 365 e-mail. Contractor shall have the ability to communicate effectively, and in real- time, with the City; in English, via spoken, written, and electronic (Cell-phone & e- mail) media. e) The operation of all mowing equipment shall be in a manner that is not hazardous to public and private property, pedestrians and the operators. All equipment shall have CITY OF SCHERTZ PAGE 12 BrightView Landscape Services, Inc Service Agreement factory installed safety systems in place, operational and in good condition. All mowing equipment shall have functional debris deflectors in place at all time. Deflectors shall be standard, manufacturer approved equipment. f) Any damages to City and/or private property resultant from the performance of this contract shall be repaired and/or replaced by Contractor to the maximum extent of damages. Such repairs and/or replacements shall be promptly made by the Contractor at no expense to the City. g) Contractor shall agree to perform any and all additional grounds maintenance requirements designated by the Parks and Recreation Department at the contracted per unit price. h) All maintenance equipment, operating on public Schertz streets, shall display TXDOT approved slow moving equipment symbols, flags and other safety equipment as required by law. i) All grounds maintenance personnel shall wear approved traffic safety vests while operating equipment on City or State property. Contractor shall be responsible for placing signs and/or traffic cones as necessary while performing maintenance on city medians and parkways per mutcd.fhwa.dot.gov (Manual on Uniform Traffic Control Devices). No passengers shall be allowed on mowing equipment at any time. k) Prior to initiation of work for each mowing season, Contractor shall supply, in written and electronically transmittable form, a detailed Grounds Maintenance Schedule to the Parks and Recreation Department. This schedule shall be updated, and the City notified in writing, of any necessary schedule changes. At a minimum, during the mowing season, Contractor shall contact the Parks and Recreation Department on a weekly basis to report their contract progress. Maintenance cycles shall be completed as specified and awarded for each contract maintenance area. If wet weather renders grounds too soft to carry the weight of maintenance equipment without significant rutting, contractor shall not perform maintenance. Contractor shall notify the City of any significant delays (greater than 24 hours) due to wet conditions. Such notification shall also be made for any other reason which will delay maintenance operations. l) After each maintenance cycle is completed and along with the invoice submittal, Contractor shall submit electronically all completed properties for that billing cycle on the specified forms for each property (Form A-1, A-2, and/or A-3). These forms will be provided electronically to the Account Manager. m) Contractor shall provide Litter Control on all medians, parkways, parks, beautification areas, and building grounds as designated in this contract (unless otherwise specified by the City for omission) prior to each mowing cycle. Litter shall be placed in plastic bags and immediately removed from the site in such manner as to prevent redistribution of litter between collection site and disposal location. Contractor shall be responsible for disposal of all litter at a State of Texas approved landfill. Contractor shall be responsible for any and all fees for disposal of litter generated from this contract. Contractors shall insure that NO litter is mowed. Any litter, shredded in performance of any contract under this specification, shall be immediately removed at contractor’s expense. Litter control shall apply to all sections of this contract. CITY OF SCHERTZ PAGE 13 BrightView Landscape Services, Inc Service Agreement n) Additional maintenance areas may be added, by the City, during the contract period. Conversely, private landscape development in certain areas may eliminate the need for City funded maintenance. Such areas would then be removed from the contract. Contractor shall agree to perform any and all additional mowing, trimming, edging & litter control, landscape, and tree maintenance requirements, per specified maintenance standards as designated by the Parks & Recreation Department at the set contract per acre cost. Contractor shall also agree to delete maintenance areas previously specified for grounds maintenance as designated by the Parks & Recreation Department at the set contract unit cost. o) All trees planted on medians, parkways, building grounds, parks & streetscape properties, shall be protected from damage resultant from this contract. Contractor shall give instruction and ensure that all maintenance personnel refrain from string trimming around tree trunks in a manner which would disturb or damage tree bark. Contractor shall also give instructions to their maintenance personnel and ensure that no trees are damaged during mowing operations. Tree wells damaged during contract performance shall be restored to their original condition, by the contractor, at no additional charge to the City. Such restoration shall be completed within two (2) working days after damage has occurred and the contractor notified by the City. p) Chemical Weed Control: (1) The use of chemicals for weed control in turf and solid landscape surfaces will be permitted under the following provisions: (a) Written intent and qualification to use herbicides, by the contractor, stipulated and supplied as part of the original submittal, and (b) Provision to the City by the Contractor a complete list of all chemicals to be used, along with a detailed spraying schedule, and (c) Provision of SDS information to the City prior to spraying, and (d) Full compliance by the Contractor to pesticide/herbicide application requirements as set forth by the Texas Department of Agriculture, the Texas Commission on Environmental Quality, the Environmental Protection Agency, the manufacturer's instructions and labels, for proper use of pesticide products, and (e) Insurance by the Contractor that all application equipment has been inspected and is in conformance with all State and Federal pesticide application regulations, and (f) Proof that the Contractor holds current and valid licensing from the Texas Structural Pest Control Board or the Texas Department of Agriculture. Copies of such licensing shall be forwarded to the City prior to application of any pesticide on City property, and CITY OF SCHERTZ PAGE 14 BrightView Landscape Services, Inc Service Agreement (g) Furnishing by the contractor, a listing of one (1) supervisor, to be directly responsible for chemical application on City property. This person shall have a minimum of one (1) years’ experience in pesticide application, and (h) Assurance by the Contractor not to apply any herbicide during or after periods of rain, or when rainfall is forecast within twenty-four (24) hours of scheduled application. Contractor shall not apply herbicides while vegetation retains surface moisture on plant surfaces. (i) Pesticides shall not be sprayed when there is a risk of direct contact with people or animals. q) Wildflower Preservation Guidelines: (1) Protected Species: Bluebonnets, Indian Paintbrush, Primrose, Winecups, Verbena, Indian Blanket, sunflower and other wildflower stands “Which can be readily identified” (2) Mass wildflower groupings are to be protected (a) Single plants or small areas of “Stand-Alone” wildflowers are not subject to preservation. (b) All wildflower stands visible from traffic lanes are to be protected. (c) Unless there is a “significant” grouping of wildflowers, plants directly adjacent to the edge of the roadway may be mowed for a visibility strip. This strip will be one (1) mower width. (d) All significant stands of wildflowers shall be maintained through the practice of pattern mowing. 2. MOWING SPECIFICATIONS: - (Bid Items – Items 1 through 3 – 36 - Cycle Properties and 18-Cycle Properties) a) The City of Schertz properties included in the contract are described in the detailed inventory. (Attachment One) b) All turf areas shall be uniformly finish cut each mowing cycle at a mowing height of two (2) inches. All turf areas are to be completely mowed with no missed areas. Mowing equipment shall be such that it will provide a uniform quality cut with no scalping or “gapping”. All blades are to be maintained in a sharpened condition and all other mower components shall be maintained to provide quality service. c) Wildflowers of significant stands shall not be mowed from mid-March through mid-June. Contractor shall consult with City & receive approval before mowing any areas containing wildflowers in bloom d) For right of way areas at road intersections and railroad intersections, all grass and weeds growing around curbs, signs, abutments, light poles, fire hydrants, or other structural maintenance, and/or visual barriers shall be trimmed to a uniform height of two (2) inches to prevent visibility impairment. e) Litter control shall be completed prior to each mowing cycle per this Specification. f) All trees shall be protected from damage per this Specification. CITY OF SCHERTZ PAGE 15 BrightView Landscape Services, Inc Service Agreement g) All solid medians, expansion joints, bridge abutments, light poles, signs, irrigation equipment, trees and other maintenance barriers that fall within these designated mowing areas shall also require mowing and/or trimming of grass and weeds on the specified maintenance schedule unless otherwise specified by the Parks and Recreation Department. Grass and weeds on solid medians and in expansion joints shall be cut flush with the pavement. This includes triangle type raised medians that delineate turning lanes at intersections and crack weeds between curb and asphalt with road being maintained by this contract. h) All hard surface areas, cracks, expansion joints, pavers, etc. that fall within the area of public building grounds also require grass and weed removal on the specified maintenance schedule. Fall leaf removal shall be included as part of this contract. i) All edge areas shall be treated with steel blade equipment to give a vertically cut edge. j) Turf areas, which cannot be maintained with mowing equipment, shall be cut to specified turf height using a string-line trimmer. k) All excessive grass clippings and debris shall be removed from sidewalks and hard surface areas. l) Blowing of Grass Clippings and Leaves: (1) Grass Clippings and leaves shall be blown in such a way that they are NOT blown directly onto a street or drainage channel. (2) Clippings and/or leaves which accumulate around drainage inlets shall be blown away from inlet and onto the adjacent right of way turf area. m) As part of this specification an herbicide treatment of Glyphosate (or approved equal) shall be applied to all median expansion joints, bridge abutments, light pole bases, signs, or other maintenance barriers that fall within these designated solid surface median and parkway areas. Chemicals shall be applied according to manufacturer’s labels on a schedule sufficient to eliminate all visible growth. All chemicals shall be applied under terms of the Chemical Weed Control Specification: n) Chemical Weed Control: (a) The use of chemicals for weed control in turf and solid landscape surfaces shall be applied as necessary per the provisions for chemical weed control within this specification. B. CITY CAMPUSES AND PARKWAYS MAINTENANCE SPECIFICATIONS: - (Additional Specifications for Item 2 – 36 Cycle Properties) a) The City of Schertz properties that are to be included in the contract are described in detailed inventories. (Attachment 1) b) Chemical herbicide application – per Chemical Weed Control specifications, herbicide can be applied to weeds in planting beds. CITY OF SCHERTZ PAGE 16 BrightView Landscape Services, Inc Service Agreement c) Planting bed maintenance – All shrubs, ground covers beds, and mulch areas shall be maintained weed free; remove litter when weeding beds as necessary. d) Hedge, ornamental tree, and ground cover trimming shall be done as needed to maintain the shape of the plant material and keep walkways, sidewalks, and parking spaces clear of vegetation. e) “Alien” plants (hackberry, Johnson grass, etc.) sprouting out through shrubs such as knock-out roses or lantana shall be removed at every cycle. f) Contractor shall not allow any performance of work if there is a reasonable possibility of any limb or debris falling on persons, property or other plant material. g) Contractor shall provide barricading and/or coning to prevent unauthorized personnel from entering work zone. h) Under no circumstances shall a partially cut limb or tree be left standing, and unattended, during rest breaks, lunch breaks or overnight. i) All pruning equipment shall be maintained in a sharp and mechanically functional condition, to provide a precise and clean cut. All pruning equipment is to be sterilized after each tree to prevent spread of disease or organisms. i) All personnel performing hedge, ornamental tree, or groundcover trimming under this specification shall have been trained in proper horticultural and arboricultural methods and techniques for pruning and trimming. All personnel shall have proven successful professional experience in hedge, ornamental tree & ground cover trimming and shall be supervised by horticulture professional staff. ii) All limbs, branches, & other trimming debris shall be completely removed from the premises j) Hedge Trimming Specifications: i) Hedges shall be uniformly pruned according to the growth pattern for each species and maintained to the set trimming height on each pruning cycle. ii) Hedges shall be trimmed to encourage vegetative growth & shall not be trimmed in such fashion as to expose woody stems. k) Ornamental Trees Trimming Specifications: i) All ornamental trees shall be uniformly trimmed to maintain the natural form and shape consistent to the species. ii) Pruned branches shall be removed without leaving a protruding ‘stub’. No flush cuts are to be made. iii) All cuts shall be made using accepted professional arboricultural and horticultural techniques. NO TREE TOPPING OR DEHORNING WILL BE PERMITTED. iv) Basal sprouts and suckers shall be removed at each maintenance cycle. l) Ground Cover Trimming Specifications: i) All ground cover areas shall be uniformly trimmed to maintain the natural form and shape consistent to the species. CITY OF SCHERTZ PAGE 17 BrightView Landscape Services, Inc Service Agreement ii) All cuts shall be made, using accepted professional horticultural techniques. iii) Groundcovers shall be trimmed to encourage vegetative growth & shall not be trimmed in such fashion as to scalp and expose woody stems. CITY OF SCHERTZ PAGE 18 BrightView Landscape Services, Inc Service Agreement Exhibit “B” REQUIREMENTS FOR ALL INSURANCE DOCUMENTS The Contractor shall comply with each and every condition contained herein. The Contractor shall provide and maintain the minimum insurance coverage set forth below during the term of its agreement with the City. Any Subcontractor(s) hired by the Contractor shall maintain insurance coverage equal to that required of the Contractor. It is the responsibility of the Contractor to assure compliance with this provision. The City of Schertz accepts no responsibility arising from the conduct, or lack of conduct, of the Subcontractor. INSTRUCTIONS FOR COMPLETION OF INSURANCE DOCUMENT With reference to the foregoing insurance requirements, Contractor shall specifically endorse applicable insurance policies as follows: 1. The City of Schertz shall be named as an additional insured with respect to General Liability and Automobile Liability on a separate endorsement. 2. A waiver of subrogation in favor of The City of Schertz shall be contained in the Workers Compensation and all liability policies and must be provided on a separate endorsement. 3. All insurance policies shall be endorsed to the effect that The City of Schertz will receive at least thirty (30) days written notice prior to cancellation or non-renewal of the insurance. 4. All insurance policies, which name The City of Schertz as an additional insured, must be endorsed to read as primary and non-contributory coverage regardless of the application of other insurance. 5. Chapter 1811 of the Texas Insurance Code, Senate Bill 425 82(R) of 2011, states that the above endorsements cannot be on the certificate of insurance. Separate endorsements must be provided for each of the above. 6. All insurance policies shall be endorsed to require the insurer to immediately notify The City of Schertz of any material change in the insurance coverage. 7. All liability policies shall contain no cross liability exclusions or insured versus insured restrictions. 8. Required limits may be satisfied by any combination of primary and umbrella liability insurances. 9. Contractor may maintain reasonable and customary deductibles, subject to approval by The City of Schertz. 10. Insurance must be purchased from insurers having a minimum AmBest rating of B+. 11. All insurance must be written on forms filed with and approved by the Texas Department of Insurance. (ACORD 25 2010/05). Coverage must be written on an occurrence form. 12. Contractual Liability must be maintained covering the Contractors obligations contained in the contract. Certificates of Insurance shall be prepared and executed by the insurance company or its authorized agent and shall contain provisions representing and warranting all endorsements and insurance coverages according to requirements and instructions contained herein. 13. Upon request, Contractor shall furnish The City of Schertz with certified copies of all insurance policies. 14. A valid certificate of insurance verifying each of the coverages required above shall be issued directly to the City of Schertz within ten (10) business days after contract award and prior to starting any work by the successful Contractor’s insurance agent of record or insurance company. Also, prior to the start of any work and at the same time that the Certificate of Insurance is issued and sent to the City of Schertz, all required endorsements identified in sections A, B, C and D, above shall be sent to the City of Schertz. The certificate of insurance and endorsements shall be sent to: City of Schertz emailed to: purchasing@schertz.com Purchasing Department Faxed to: 210-619-1169 1400 Schertz Parkway Schertz, TX 78154 CITY OF SCHERTZ PAGE 19 BrightView Landscape Services, Inc Service Agreement CITY OF SCHERTZ PAGE 20 BrightView Landscape Services, Inc Service Agreement (Instructions for completing and submitting a certificate to the City of Schertz) Complete the certificate of insurance with the information listed below: A) Certificate of Insurance date B) Producer (Insurance Agency) Information – complete name, address, telephone information, & email address. C) Insured’s (Insurance Policy Holder) Information – complete name & address information D) Insurer (name/names of insurance company) **(Remember the city requires all insurance companies to be Authorized to do business in the State of Texas be rated by A.M. Best with a rating of B+ (or better) Class VI (or higher) or otherwise be acceptable to the City if not rated by A.M. Best) E) NAIC # (National Association of Insurance Commissioners, a # that is assigned by the State to all insurance companies) F) Insurer letter represents which insurance company provides which type of coverage from D G) General Liability Insurance Policy – must have an (x) in box. Also, “Occurrence” type policy – must have an (x) in the box (occurrence policy preferred but claims made policy can be accepted with special approval) H) This section shall be filled in with “Y” for yes under Additional Insured for all coverages, except for Contractor Liability and Workers’ Compensation. There shall also be a “Y” for yes under all coverages for subrogation waived. I) Automobile Liability Insurance – must be checked for Any Auto, All Owned Autos, Hired Autos J) Umbrella Coverage – must be checked in this section and by occurrence whenever it is required by written contract and in accordance with the contract value. K) Worker’s Compensation and Employers Liability Insurance – information must be completed in this section of the certificate of insurance form (if applicable). L) Builder’s Risk Policy – for construction projects as designated by the City of Schertz. Professional Liability Coverage – for professional services if required by the City of Schertz. M) Insurance Policy #’s N) Insurance policy effective dates (always check for current dates) O) Insurance Policy limits (See Insurance Requirements Checklist) P) This section is to list projects, dates of projects, or location of project. Endorsements to the insurance policy(ies) must be provided separately and not in this section. The following endorsements are required by the City of Schertz. (1) Adding the City of Schertz as an additional insured. The “additional insured” endorsement is not required for professional liability and workers compensation insurance; and (2) Waiver of Subrogation (3) Primary and Non-Contributory (4) Cancellation Notice Q) City of Schertz’s name and address information must be listed in this section R) Notice of cancellation, non-renewal, or material change to the insurance policy(ies) must be provided to the City of Schertz in accordance with a cancellation notice endorsement to the policy and/or per the policy provisions based on the endorsement adding the city as an additional insured. (Sec. 1811.155, Tex. Ins. Code) S) The certificate must be signed by the Authorized Agent in this section of the certificate form. CITY OF SCHERTZ PAGE 21 BrightView Landscape Services, Inc Service Agreement Exhibit “C” EVIDENCE OF INSURANCE CITY OF SCHERTZ PAGE 22 BrightView Landscape Services, Inc Service Agreement ATTACHMENT ONE CONTRACT PROPERTIES PROPERTIES FROM FORM A-2 Sequence # Building/Park/ Streetscape Address Acres 1 Hal Baldwin Municipal Complex (#2-16 in this list) 1400 Schertz Parkway 40.04 2 City Hall Building #1 1400 Schertz Parkway 3 Administration Building #2 1400 Schertz Parkway 4 Community Center Building #3 1400 Schertz Parkway 5 Council Chambers Building #4 1400 Schertz Parkway 6 Civic Center Building #5 1400 Schertz Parkway 7 Police Department Building #6 1400 Schertz Parkway 8 EMS Department Building #7 1400 Schertz Parkway 9 Purchasing Building #9 1400 Schertz Parkway 10 Perimeter of Schertz Ballpark 1400 Schertz Parkway 11 Schertz Dog Park 940 Community Circle Dr 12 Schertz Practice Fields 820 Community Circle Dr 13 Schertz Skate Park 820 Community Circle Dr 14 Animal Adoption Center 800 Community Circle Dr 15 Schertz Visitor Center 1730 Schertz Parkway 16 Schertz Exercise Trail Between Community Circle & Creek 17 Schertz Public Library Complex (#17-23 in this list) 798 Schertz Parkway 13.77 CITY OF SCHERTZ PAGE 23 BrightView Landscape Services, Inc Service Agreement 18 Schertz Public Library 798 Schertz Parkway 19 Schertz Community Playscape 629 Westchester Dr 20 Schertz Recreation Center 621 Westchester Dr 21 Schertz Aquatic Center 560 Schertz Parkway 22 Veteran's Memorial Plaza 512 Schertz Parkway 23 Schertz Area Senior Center 608 Schertz Parkway 24 Fire Station #2 19085 N IH-35 2.59 25 Fire Station #3 11917 Lower Seguin Rd 3.47 PROPERTIES FROM FORM A-3 Sequence # Building/Park/ Streetscape Address Acres 1 Welcome to Schertz Sign Corner of IH-35 and Schertz Parkway 0.22 2 Schertz Parkway Medians, Sidewalks, ROW NORTH From IH-35 to Live Oak Road 2.88 3 Schertz Parkway Medians, Sidewalks, ROW SOUTH From Live Oak Road to FM 78 1.07 4 Legacy Oaks Parkway Medians, Sidewalks, ROW From Schertz Parkway to IH-35 0.17 5 Country Club Drive Medians, Sidewalks, ROW From IH-35 to Scenic Links 0.62 6 Hubertus Road Medians From IH-35 to FM 482 0.22 7 Cibolo Valley Drive Medians From IH-35 to Old Wiederstein Rd CITY OF SCHERTZ PAGE 1 Maldonado Nursery & Landscaping Service Agreement CITY OF SCHERTZ SERVICE AGREEMENT THE STATE OF TEXAS § § GUADALUPE COUNTY § This Service Agreement (“Agreement”) is made and entered by and between the City of Schertz, Texas, (the “City”) a Texas municipality, and Maldonado Nursery & Landscaping (“Contractor”). Section 1. Duration This Agreement shall become effective upon the date of the final signature affixed hereto and shall remain in effect through September 30, 2025 with the option to renew for two (2) additional terms of one (1) year each unless terminated as provided for in this Agreement. The renewals on this agreement shall not extend beyond September 30, 2027. Section 2. Scope of Work (A) Contractor shall perform the Work as more particularly described in the Scope of Work attached hereto as Exhibit “A”. The work as described in the Scope of Work constitutes the “Project”. (B) The Quality of Work provided under this Agreement shall be of the level of quality performed by Contractors regularly rendering this type of service. (C) The Contractor shall perform its Work for the Project in compliance with all statutory, regulatory and contractual requirements now or hereafter in effect as may be applicable to the rights and obligations set forth in the Agreement. (D) The Contractor may rely upon the accuracy of reports and surveys provided to it by the City except when defects should have been apparent to a reasonably competent Contractor or when it has actual notice of any defects in the reports and surveys. Section 3. Compensation (A) The Contractor shall be paid in full upon completion of the project or in the manner set forth in Exhibit “A” and as provided herein. (B) Billing Period. Subject to Chapter 2251, Texas Government Code (the “Prompt Payment Act”), payment is due within thirty (30) days of the City’s receipt of the Contractor’s invoice. Interest on overdue payments shall be calculated in accordance with the Prompt Payment Act. (C) Reimbursable Expenses. Any and all reimbursable expenses related to the Project shall be included in the scope of Work (Exhibit A) and accounted for in the total contract amount. (D) Payments Subject to Future Appropriation. This Agreement shall not be construed as a commitment, issue, pledge or obligation of any specific taxes or tax revenues for payment to Contractor. CITY OF SCHERTZ PAGE 2 Maldonado Nursery & Landscaping Service Agreement (1) All payments or expenditures made by the City under this Agreement are subject to the City's appropriation of funds for such payments or expenditures to be paid in the budget year for which they are made. (2) The payments to be made to Contractor, or other expenditures under this Agreement, if paid, shall be made solely from annual appropriations of the City as may be legally set aside for the implementation of Article III, Section 52-a of the Texas Constitution or Chapter 380 of the Texas Local Government Code or any other economic development or financing program authorized by statute or home rule powers of the City under applicable Texas law, subject to any applicable limitations or procedural requirements. (3) In the event the City does not appropriate funds in any fiscal year for payments due or expenditures under this Agreement, the City shall not be liable to Contractor for such payments or expenditures unless and until appropriation of said funds is made; provided, however, that Contractor, in its sole discretion, shall have the right but not the obligation to terminate this Agreement and shall have no obligations under this Agreement for the year in respect to which said unappropriated funds relate. (4) To the extent there is a conflict of this Section and any other language or covenants in this Agreement, this Section 3 shall control. Section 4. Time of Completion The prompt completion of the Work under the Scope of Work relates is critical to the City. Unnecessary delays in providing Work under a Scope of Work shall be grounds for dismissal of the Contractor and termination of this Agreement without any or further liability to the City other than a prorated payment for necessary, timely, and conforming work done by Contractor prior to the time of termination. Section 5. Insurance Before commencing work under this Agreement, Contractor shall obtain and maintain the liability insurance provided for below throughout the term of the Project plus an additional two years. Contractor shall provide evidence of such insurance to the City. Such documentation shall meet the requirements noted in Exhibit B. Contractor shall maintain the following limits and types of insurance: Workers Compensation Insurance: Contractor shall carry and maintain during the term of this Agreement, workers compensation and employers liability insurance meeting the requirements of the State of Texas on all the Contractor’s employees carrying out the work involved in this contract. General Liability Insurance: Contractor shall carry and maintain during the term of this Agreement, general liability insurance on a per occurrence basis with limits of liability not less than $1,000,000 for each occurrence and for fire damage. For Bodily Injury and Property Damage, coverage shall be no less than $1,000,000. As a minimum, coverage for Premises, Operations, Products and Completed Operations shall be $2,000,000. This coverage shall protect the public or any person from injury or property damages sustained by reason of the Contractor or its employees CITY OF SCHERTZ PAGE 3 Maldonado Nursery & Landscaping Service Agreement carrying out the work involved in this Agreement. The general aggregate shall be no less than $2,000,000. Automobile Liability Insurance: Contractor shall carry and maintain during the term of this Agreement, automobile liability insurance with either a combined limit of at least $1,000,000 per occurrence for bodily injury and property damage or split limits of at least $1,000,000 for bodily injury per person per occurrence and $1,000,000 for property damage per occurrence. Coverage shall include all owned, hired, and non-owned motor vehicles used in the performance of this contract by the Contractor or its employees. Subcontractor: In the case of any work sublet, the Contractor shall require subcontractor and independent contractors working under the direction of either the Contractor or a subcontractor to carry and maintain the same workers compensation and liability insurance required of the Contractor. Qualifying Insurance: The insurance required by this Agreement shall be written by non-assessable insurance company licensed to do business in the State of Texas and currently rated "B+" or better by the A.M. Best Companies. All policies shall be written on a “per occurrence basis” and not a “claims made” form. Evidence of such insurance shall be attached as Exhibit “C”. Failure of Certificate Holder to demand a certificate or other evidence of full compliance with these insurance requirements or failure of Certificate Holder to identify a deficiency from evidence that is provided will not be construed as a waiver of Insured’s obligation to maintain such insurance. Section 6. Miscellaneous Provisions (A) Subletting. The Contractor shall not sublet or transfer any portion of the work under this Agreement or any Scope of Work issued pursuant to this Agreement unless specifically approved in writing by the City, which approval shall not be unreasonably withheld. Subcontractors shall comply with all provisions of this Agreement and the applicable Scope of Work. The approval or acquiescence of the City in the subletting of any work shall not relieve the Contractor of any responsibility for work done by such subcontractor. (B) Compliance with Laws. The Contractor shall comply with all federal, state and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts, administrative, or regulatory bodies in any matter affecting the performance of this Agreement, including, without limitation, worker’s compensation laws, minimum and maximum salary and wage statutes and regulations, and licensing laws and regulations. When required, the Contractor shall furnish the City with satisfactory proof of compliance. (C) Independent Contractor. Contractor acknowledges that Contractor is an independent contractor of the City and is not an employee, agent, official or representative of the City. Contractor shall not represent, either expressly or through implication, that Contractor is an employee, agent, official or representative of the City. Income taxes, self-employment taxes, social security taxes and the like are the sole responsibility of the Contractor. (D) Non-Collusion. Contractor represents and warrants that Contractor has not given, made, CITY OF SCHERTZ PAGE 4 Maldonado Nursery & Landscaping Service Agreement promised or paid, nor offered to give, make, promise or pay any gift, bonus, commission, money or other consideration to any person as an inducement to or in order to obtain the work to be provided to the City under this Agreement. Contractor further agrees that Contractor shall not accept any gift, bonus, commission, money, or other consideration from any person (other than from the City pursuant to this Agreement) for any of the Work performed by Contractor under or related to this Agreement. If any such gift, bonus, commission, money, or other consideration is received by or offered to Contractor, Contractor shall immediately report that fact to the City and, at the sole option of the City, the City may elect to accept the consideration for itself or to take the value of such consideration as a credit against the compensation otherwise owing to Contractor under or pursuant to this Agreement. (E) Force Majeure. If the performance of any covenant or obligation to be performed hereunder by any party is delayed as a result of circumstances which are beyond the reasonable control of such party (which circumstances may include, without limitation, pending litigation, acts of God, war, acts of civil disobedience, fire or other casualty, shortage of materials, adverse weather conditions [such as, by way of illustration and not of limitation, severe rain storms or below freezing temperatures, or tornados] labor action, strikes or similar acts, moratoriums or regulations or actions by governmental authorities), the time for such performance shall be extended by the amount of time of such delay, but no longer than the amount of time reasonably occasioned by the delay. The party claiming delay of performance as a result of any of the foregoing force majeure events shall deliver written notice of the commencement of any such delay resulting from such force majeure event not later than seven (7) days after the claiming party becomes aware of the same, and if the claiming party fails to so notify the other party of the occurrence of a force majeure event causing such delay and the other party shall not otherwise be aware of such force majeure event, the claiming party shall not be entitled to avail itself of the provisions for the extension of performance contained in this subsection. (F) Conflict of Terms. Scope of work: In the case of any conflicts between the terms of this Agreement within the Scope of Work, this Agreement shall govern. The Scope of Work is intended to detail the technical scope of Work, fee schedule, and contract time only and shall not dictate Agreement terms. Other Agreements between parties: In the case of any conflicts between the terms of this Agreement and wording contained within any other attachment, amendment, and agreement executed between the parties in conjunction with this Agreement, this Agreement shall govern. (G) Non-Boycott of Israel. Pursuant to Section 2270.002 of the Texas Government Code, Contractor certifies that either (i) it meets an exemption criterion under Section 2270.002; or (ii) it does not boycott Israel and will not boycott Israel during the term of the contract resulting from this solicitation. Contractor shall state any facts that make it exempt from the boycott certification as an attachment to this agreement. Relevant definitions from the bill: "Company" means a for-profit sole proprietorship, organization, association, corporation, CITY OF SCHERTZ PAGE 5 Maldonado Nursery & Landscaping Service Agreement partnership, joint venture, limited partnership, limited liability partnership, or limited liability company, including a wholly owned subsidiary, majority-owned subsidiary, parent company, or affiliate of those entities or business associations that exists to make a profit. "Boycott Israel" means refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations specifically with Israel, or with a person or entity doing business in Israel or in an Israeli-controlled territory, but does not include an action made for ordinary business purposes. (H) Non-Boycott of Energy. Pursuant to Texas Senate Bill 13 (2021), Contractor certifies that either (i) it does not boycott Israel and will not boycott energy companies; and (2) will not boycott energy companies during the term of the contract resulting from this solicitation. Contractor shall state any facts that make it exempt from the boycott certification as an attachment to this agreement. (I) Non-Boycott of Firearm Entity. Pursuant to Texas Senate Bill 19 (2021), Contractor certifies that it: (a) does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and (b) will not discriminate during the term of the contract against a firearm entity or firearm trade association . (J) Access to Premises. Authorized representatives of the Contractor will be allowed access to the facilities on City premises at reasonable times to perform the obligations of the Contractor regarding such facilities. Contractor shall adhere to all City rules, regulations, and guidelines while on City property. It is expressly understood that the City may limit or restrict the right of access herein granted in any manner considered necessary (e.g., national security, public safety). (K) INTERLOCAL PARTICIPATION The City may enter into Interlocal Cooperation Purchasing Agreements with other governmental entities or governmental cooperatives (hereafter collectively referred to as “Entity” or “Entities”) to enhance the City’s purchasing power. At the City’s sole discretion and option, City may inform other Entities that they may acquire items listed in this IFB. Such acquisition(s) shall be at the prices stated herein, and shall be subject to bidder’s acceptance. Entities desiring to acquire items listed in this IFB shall be listed on a rider attached hereto, if known at the time of issuance of the IFB. City may issue subsequent riders after contract award setting forth additional Entities desiring to utilize this bid. VENDOR shall sign and return any subsequently issued riders within ten calendar days of receipt. In no event shall City be considered a dealer, re-marketer, agent or other representative of Vendor or Entity. Further, City shall not be considered and is not an agent; partner or representative of the Entity making purchases hereunder, and shall not be obligated or liable for any such order. CITY OF SCHERTZ PAGE 6 Maldonado Nursery & Landscaping Service Agreement Entity purchase orders shall be submitted to Vendor by the Entity. City will not be liable or responsible for any obligations, including, but not limited to, payment, and for any item ordered by an entity other than City. Vendor authorizes City’s use of Vendor’s name, trademarks and Vendor provided materials in City’s presentations and promotions regarding the availability of use of this contract. The City makes no representation or guarantee as to any minimum amount being purchased by City or Entities, or whether Entity will purchase utilizing City’s contract. Section 7. Termination (A) This Agreement may be terminated: (1) By the mutual agreement and consent of both Contractor and City; (2) By either party, upon the failure of the other party to fulfill its obligations as set forth in either this Agreement or a Scope of Work issued under this Agreement; (3) By the City, immediately upon notice in writing to the Contractor, as consequence of the failure of Contractor to perform the Work contemplated by this Agreement in a timely or satisfactory manner; (4) By the City, at will and without cause upon not less than thirty (30) days written notice to the Contractor. (B) If the City terminates this Agreement pursuant to subsection 7(A)(2) or (3), above, the Contractor shall not be entitled to any fees or reimbursable expenses other than the fees and reimbursable expenses then due and payable as of the time of termination and only then for those Work that have been timely and adequately performed by the Contractor considering the actual costs incurred by the Contractor in performing work to date of termination, the value of the work that is nonetheless usable to the City, the cost to the City of employing another Contractor to complete the work required and the time required to do so, and other factors that affect the value to the City of the work performed at time of termination. In the event of termination not the fault of the Contractor, the Contractor shall be compensated for all basic, special, and additional Work actually performed prior to termination, together with any reimbursable expenses then due. Section 8. Indemnification CONTRACTOR AGREES TO INDEMNIFY AND HOLD THE CITY OF SCHERTZ, TEXAS AND ALL OF ITS PRESENT, FUTURE AND FORMER AGENTS, EMPLOYEES, OFFICIALS AND REPRESENTATIVES HARMLESS IN THEIR OFFICIAL, INDIVIDUAL AND REPRESENTATIVE CAPACITIES FROM ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION, JUDGMENTS, LIENS AND EXPENSES (INCLUDING ATTORNEY'S FEES, WHETHER CONTRACTUAL OR STATUTORY), COSTS AND DAMAGES (WHETHER COMMON LAW OR STATUTORY), COSTS AND DAMAGES (WHETHER COMMON LAW OR STATUTORY, AND WHETHER ACTUAL, PUNITIVE, CONSEQUENTIAL OR INCIDENTAL), OF ANY CONCEIVABLE CHARACTER, FOR INJURIES TO PERSONS (INCLUDING DEATH) OR TO PROPERTY (BOTH REAL AND PERSONAL) CREATED BY, ARISING FROM OR IN ANY MANNER RELATING TO THE CITY OF SCHERTZ PAGE 7 Maldonado Nursery & Landscaping Service Agreement WORK OR GOODS PERFORMED OR PROVIDED BY CONTRACTOR – EXPRESSLY INCLUDING THOSE ARISING THROUGH STRICT LIABILITY OR UNDER THE CONSTITUTIONS OF THE UNITED STATES. Section 9. Notices Any notice required or desired to be given from one party to the other party to this Agreement shall be in writing and shall be given and shall be deemed to have been served and received (whether actually received or not) if (i) delivered in person to the address set forth below; (ii) deposited in an official depository under the regular care and custody of the United States Postal Service located within the confines of the United States of America and sent by certified mail, return receipt requested, and addressed to such party at the address hereinafter specified; or (iii) delivered to such party by courier receipted delivery. Either party may designate another address within the confines of the continental United States of America for notice, but until written notice of such change is actually received by the other party, the last address of such party designated for notice shall remain such party's address for notice. Section 10. No Assignment Neither party shall have the right to assign that party's interest in this Agreement without the prior written consent of the other party. Section 11. Severability If any term or provision of this Agreement is held to be illegal, invalid or unenforceable, the legality, validity or enforceability of the remaining terms or provisions of this Agreement shall not be affected thereby, and in lieu of each such illegal, invalid or unenforceable term or provision, there shall be added automatically to this Agreement a legal, valid or enforceable term or provision as similar as possible to the term or provision declared illegal, invalid or unenforceable. Section 12. Waiver Either City or the Contractor shall have the right to waive any requirement contained in this Agreement that is intended for the waiving party's benefit, but, except as otherwise provided herein, such waiver shall be effective only if in writing executed by the party for whose benefit such requirement is intended. No waiver of any breach or violation of any term of this Agreement shall be deemed or construed to constitute a waiver of any other breach or violation, whether concurrent or subsequent, and whether of the same or of a different type of breach or violation. Section 13. Governing Law; Venue This Agreement and all of the transactions contemplated herein shall be governed by and construed in accordance with the laws of the State of Texas. The provisions and obligations of this Agreement are performable in Guadalupe County, Texas such that exclusive venue for any action arising out of this Agreement shall be in Guadalupe County, Texas. Section 14. Paragraph Headings; Construction The paragraph headings contained in this Agreement are for convenience only and shall in no way enlarge or limit the scope or meaning of the various and several paragraphs hereof. Both parties have participated in the negotiation and preparation of this Agreement and this Agreement shall not be construed either more or less strongly against or for either party. Section 15. Binding Effect CITY OF SCHERTZ PAGE 8 Maldonado Nursery & Landscaping Service Agreement Except as limited herein, the terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, devisees, personal and legal representatives, successors and assigns. Section 16. Gender Within this Agreement, words of any gender shall be held and construed to include any other gender, and words in the singular number shall be held and construed to include the plural, unless the context otherwise requires. Section 17. Counterparts This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which shall constitute but one and the same instrument. Section 18. Exhibits & Attachments All exhibits and attachments to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. Section 19. Entire Agreement It is understood and agreed that this Agreement, which incorporates the original RFP, Contractor’s Response to RFP, and Purchase Order(s) issued for payment contains the entire agreement between the parties and supersedes any and all prior agreements, arrangements or understandings between the parties relating to the subject matter. No oral understandings, statements, promises or inducements contrary to the terms of this Agreement exist. This Agreement cannot be changed or terminated orally. Order of Precedence. In the event of a conflict between the terms and conditions included in the body of this Agreement and the terms and conditions included in any of the incorporated documents, the order of precedence shall be: (a)Agreement; (b) the attachments and/or exhibits to Agreement, (c)Contractor’s Response to RFP, and (d) Purchase Order(s). Section 20. Relationship of Parties Nothing contained in this Agreement shall be deemed or construed by the parties hereto or by any third party to create the relationship of principal and agent or of partnership or of joint venture or of any association whatsoever between the parties, it being expressly understood and agreed that no provision contained in this Agreement nor any act or acts of the parties hereto shall be deemed to create any relationship between the parties other than the relationship of independent parties contracting with each other solely for the purpose of effecting the provisions of this Agreement. Section 21. Right To Audit City shall have the right to examine and audit the books and records of Contractor with regards to the work described in Exhibit A, or any subsequent changes, at any reasonable time. Such books and records will be maintained in accordance with generally accepted principles of accounting and will be adequate to enable determination of: (1) the substantiation and accuracy of any payments required to be made under this Agreement; and (2) compliance with the provisions of this Agreement. Section 22. Dispute Resolution In accordance with the provisions of Subchapter I, Chapter 271, TEX. LOCAL GOV’T CODE, the CITY OF SCHERTZ PAGE 9 Maldonado Nursery & Landscaping Service Agreement parties agree that, prior to instituting any lawsuit or other proceeding arising from a dispute under this agreement, the parties will first attempt to resolve the dispute by taking the following steps: (1) A written notice substantially describing the nature of the dispute shall be delivered by the dissatisfied party to the other party, which notice shall request a written response to be delivered to the dissatisfied party not less than 5 days after receipt of the notice of dispute. (2) If the response does not reasonably resolve the dispute, in the opinion of the dissatisfied party, the dissatisfied party shall give notice to that effect to the other party whereupon each party shall appoint a person having authority over the activities of the respective parties who shall promptly meet, in person, in an effort to resolve the dispute. (3) If those persons cannot or do not resolve the dispute, then the parties shall each appoint a person from the highest tier of managerial responsibility within each respective party, who shall then promptly meet, in person, in an effort to resolve the dispute. Section 23. Disclosure of Business Relationships/Affiliations; Conflict of Interest Questionnaire Contractor represents that it is in compliance with the applicable filing and disclosure requirements of Chapter 176 of the Texas Local Government Code. Certificate of Interested Parties Effective January 1, 2016, pursuant to House Bill 1295 passed by the 84th Texas Legislature (Section 2252.908, Texas Government Code, as amended) and formal rules released by the Texas Ethics Commission (TEC), all contracts with private business entities requiring approval by the Schertz City Council will require the on-line completion of Form 1295 "Certificate of Interested Parties." Form 1295 is also required for any and all contract amendments, extensions or renewals. Contractors are required to complete and file electronically with the Texas Ethics Commission using the online filing application. Please visit the State of Texas Ethics Commission website, https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm and https://www.ethics.state.tx.us/tec/1295-Info.htm for more information. IF YOU HAVE ANY QUESTIONS ABOUT COMPLIANCE, PLEASE CONSULT YOUR OWN LEGAL COUNSEL. COMPLIANCE IS THE INDIVIDUAL RESPONSIBILITY OF EACH PERSON OR AGENT OF A PERSON WHO IS SUBJECT TO THE FILING REQUIREMENT. AN OFFENSE UNDER CHAPTER 176 IS A CLASS C MISDEMEANOR. [The remainder of this page is intentionally left blank.] CITY OF SCHERTZ PAGE 10 Maldonado Nursery & Landscaping Service Agreement EXECUTED on this the day of , 20_____ CITY: CONTRACTOR: By: By: Name: Steve Williams Printed Name: Title: City Manager Title: ADDRESS FOR NOTICE: CITY: CONTRACTOR: City of Schertz Maldonado Nursery & Landscaping Attn: Steve Williams, City Manager Attn: Jerry Maldonado 1400 Schertz Parkway 16348 Nacogdoches Rd Schertz, Texas 78154 San Antonio, Tx 78247 CITY OF SCHERTZ PAGE 11 Maldonado Nursery & Landscaping Service Agreement Exhibit “A” SCOPE OF WORK Scope of Work The contractor shall provide all equipment, materials, and personnel necessary to complete the following minimum requirements. 1. Minimum Requirements a) Account Manager: Proposer shall provide the name and full electronic (Phone, Cell, and e-mail) contact information for one Account Manager, dedicated to managing this contract for the City. This individual must be directly accessible to the City’s designated representative, including after normal business hours, for any and all issues pertaining to performance of this contract for the City. Vendor shall notify the City in writing, within one (1) business day of any changes for this contact, with all information necessary to maintain full communication ability. NAME: _________________________________________ TITLE: _________________________________________ OFFICE PHONE: ________________________________ CELL PHONE: __________________________________ EMAIL: ________________________________________ b) Maintenance under this specification shall be performed during daylight hours only. c) Upon completion of each maintenance cycle, the designated contract maintenance properties will be subject to inspection by the Parks and Recreation Department. If the quality or quantity of work does not meet minimum specifications, the job will be rejected, and contractor shall re-perform maintenance to the City's satisfaction, at no additional cost to the City. d) Contractor shall provide written verification, with completion dates of all maintenance for each maintenance cycle. This verification is to be provided to the City, with monthly invoices on the appropriate Contract Mowing Cycle Performance Report (Form A1-A3) as provided by the City in Microsoft Office Excel format via Microsoft Office 365 e-mail. Contractor shall have the ability to communicate effectively, and in real- time, with the City; in English, via spoken, written, and electronic (Cell-phone & e- mail) media. e) The operation of all mowing equipment shall be in a manner that is not hazardous to public and private property, pedestrians and the operators. All equipment shall have CITY OF SCHERTZ PAGE 12 Maldonado Nursery & Landscaping Service Agreement factory installed safety systems in place, operational and in good condition. All mowing equipment shall have functional debris deflectors in place at all time. Deflectors shall be standard, manufacturer approved equipment. f) Any damages to City and/or private property resultant from the performance of this contract shall be repaired and/or replaced by Contractor to the maximum extent of damages. Such repairs and/or replacements shall be promptly made by the Contractor at no expense to the City. g) Contractor shall agree to perform any and all additional grounds maintenance requirements designated by the Parks and Recreation Department at the contracted per unit price. h) All maintenance equipment, operating on public Schertz streets, shall display TXDOT approved slow moving equipment symbols, flags and other safety equipment as required by law. i) All grounds maintenance personnel shall wear approved traffic safety vests while operating equipment on City or State property. Contractor shall be responsible for placing signs and/or traffic cones as necessary while performing maintenance on city medians and parkways per mutcd.fhwa.dot.gov (Manual on Uniform Traffic Control Devices). No passengers shall be allowed on mowing equipment at any time. k) Prior to initiation of work for each mowing season, Contractor shall supply, in written and electronically transmittable form, a detailed Grounds Maintenance Schedule to the Parks and Recreation Department. This schedule shall be updated, and the City notified in writing, of any necessary schedule changes. At a minimum, during the mowing season, Contractor shall contact the Parks and Recreation Department on a weekly basis to report their contract progress. Maintenance cycles shall be completed as specified and awarded for each contract maintenance area. If wet weather renders grounds too soft to carry the weight of maintenance equipment without significant rutting, contractor shall not perform maintenance. Contractor shall notify the City of any significant delays (greater than 24 hours) due to wet conditions. Such notification shall also be made for any other reason which will delay maintenance operations. l) After each maintenance cycle is completed and along with the invoice submittal, Contractor shall submit electronically all completed properties for that billing cycle on the specified forms for each property (Form A-1, A-2, and/or A-3). These forms will be provided electronically to the Account Manager. m) Contractor shall provide Litter Control on all medians, parkways, parks, beautification areas, and building grounds as designated in this contract (unless otherwise specified by the City for omission) prior to each mowing cycle. Litter shall be placed in plastic bags and immediately removed from the site in such manner as to prevent redistribution of litter between collection site and disposal location. Contractor shall be responsible for disposal of all litter at a State of Texas approved landfill. Contractor shall be responsible for any and all fees for disposal of litter generated from this contract. Contractors shall insure that NO litter is mowed. Any litter, shredded in performance of any contract under this specification, shall be immediately removed at contractor’s expense. Litter control shall apply to all sections of this contract. CITY OF SCHERTZ PAGE 13 Maldonado Nursery & Landscaping Service Agreement n) Additional maintenance areas may be added, by the City, during the contract period. Conversely, private landscape development in certain areas may eliminate the need for City funded maintenance. Such areas would then be removed from the contract. Contractor shall agree to perform any and all additional mowing, trimming, edging & litter control, landscape, and tree maintenance requirements, per specified maintenance standards as designated by the Parks & Recreation Department at the set contract per acre cost. Contractor shall also agree to delete maintenance areas previously specified for grounds maintenance as designated by the Parks & Recreation Department at the set contract unit cost. o) All trees planted on medians, parkways, building grounds, parks & streetscape properties, shall be protected from damage resultant from this contract. Contractor shall give instruction and ensure that all maintenance personnel refrain from string trimming around tree trunks in a manner which would disturb or damage tree bark. Contractor shall also give instructions to their maintenance personnel and ensure that no trees are damaged during mowing operations. Tree wells damaged during contract performance shall be restored to their original condition, by the contractor, at no additional charge to the City. Such restoration shall be completed within two (2) working days after damage has occurred and the contractor notified by the City. p) Chemical Weed Control: (1) The use of chemicals for weed control in turf and solid landscape surfaces will be permitted under the following provisions: (a) Written intent and qualification to use herbicides, by the contractor, stipulated and supplied as part of the original submittal, and (b) Provision to the City by the Contractor a complete list of all chemicals to be used, along with a detailed spraying schedule, and (c) Provision of SDS information to the City prior to spraying, and (d) Full compliance by the Contractor to pesticide/herbicide application requirements as set forth by the Texas Department of Agriculture, the Texas Commission on Environmental Quality, the Environmental Protection Agency, the manufacturer's instructions and labels, for proper use of pesticide products, and (e) Insurance by the Contractor that all application equipment has been inspected and is in conformance with all State and Federal pesticide application regulations, and (f) Proof that the Contractor holds current and valid licensing from the Texas Structural Pest Control Board or the Texas Department of Agriculture. Copies of such licensing shall be forwarded to the City prior to application of any pesticide on City property, and CITY OF SCHERTZ PAGE 14 Maldonado Nursery & Landscaping Service Agreement (g) Furnishing by the contractor, a listing of one (1) supervisor, to be directly responsible for chemical application on City property. This person shall have a minimum of one (1) years’ experience in pesticide application, and (h) Assurance by the Contractor not to apply any herbicide during or after periods of rain, or when rainfall is forecast within twenty-four (24) hours of scheduled application. Contractor shall not apply herbicides while vegetation retains surface moisture on plant surfaces. (i) Pesticides shall not be sprayed when there is a risk of direct contact with people or animals. q) Wildflower Preservation Guidelines: (1) Protected Species: Bluebonnets, Indian Paintbrush, Primrose, Winecups, Verbena, Indian Blanket, sunflower and other wildflower stands “Which can be readily identified” (2) Mass wildflower groupings are to be protected (a) Single plants or small areas of “Stand-Alone” wildflowers are not subject to preservation. (b) All wildflower stands visible from traffic lanes are to be protected. (c) Unless there is a “significant” grouping of wildflowers, plants directly adjacent to the edge of the roadway may be mowed for a visibility strip. This strip will be one (1) mower width. (d) All significant stands of wildflowers shall be maintained through the practice of pattern mowing. 2. MOWING SPECIFICATIONS: - (Bid Items – Items 1 through 3 – 36 - Cycle Properties and 18-Cycle Properties) a) The City of Schertz properties included in the contract are described in the detailed inventory. (Attachment 1) b) All turf areas shall be uniformly finish cut each mowing cycle at a mowing height of two (2) inches. All turf areas are to be completely mowed with no missed areas. Mowing equipment shall be such that it will provide a uniform quality cut with no scalping or “gapping”. All blades are to be maintained in a sharpened condition and all other mower components shall be maintained to provide quality service. c) Wildflowers of significant stands shall not be mowed from mid-March through mid-June. Contractor shall consult with City & receive approval before mowing any areas containing wildflowers in bloom d) For right of way areas at road intersections and railroad intersections, all grass and weeds growing around curbs, signs, abutments, light poles, fire hydrants, or other structural maintenance, and/or visual barriers shall be trimmed to a uniform height of two (2) inches to prevent visibility impairment. e) Litter control shall be completed prior to each mowing cycle per this Specification. f) All trees shall be protected from damage per this Specification. CITY OF SCHERTZ PAGE 15 Maldonado Nursery & Landscaping Service Agreement g) All solid medians, expansion joints, bridge abutments, light poles, signs, irrigation equipment, trees and other maintenance barriers that fall within these designated mowing areas shall also require mowing and/or trimming of grass and weeds on the specified maintenance schedule unless otherwise specified by the Parks and Recreation Department. Grass and weeds on solid medians and in expansion joints shall be cut flush with the pavement. This includes triangle type raised medians that delineate turning lanes at intersections and crack weeds between curb and asphalt with road being maintained by this contract. h) All hard surface areas, cracks, expansion joints, pavers, etc. that fall within the area of public building grounds also require grass and weed removal on the specified maintenance schedule. Fall leaf removal shall be included as part of this contract. i) All edge areas shall be treated with steel blade equipment to give a vertically cut edge. j) Turf areas, which cannot be maintained with mowing equipment, shall be cut to specified turf height using a string-line trimmer. k) All excessive grass clippings and debris shall be removed from sidewalks and hard surface areas. l) Blowing of Grass Clippings and Leaves: (1) Grass Clippings and leaves shall be blown in such a way that they are NOT blown directly onto a street or drainage channel. (2) Clippings and/or leaves which accumulate around drainage inlets shall be blown away from inlet and onto the adjacent right of way turf area. m) As part of this specification an herbicide treatment of Glyphosate (or approved equal) shall be applied to all median expansion joints, bridge abutments, light pole bases, signs, or other maintenance barriers that fall within these designated solid surface median and parkway areas. Chemicals shall be applied according to manufacturer’s labels on a schedule sufficient to eliminate all visible growth. All chemicals shall be applied under terms of the Chemical Weed Control Specification: n) Chemical Weed Control: (a) The use of chemicals for weed control in turf and solid landscape surfaces shall be applied as necessary per the provisions for chemical weed control within this specification. B. CITY CAMPUSES AND PARKWAYS MAINTENANCE SPECIFICATIONS: - (Additional Specifications for Item 2 – 36 Cycle Properties) a) The City of Schertz properties that are to be included in the contract are described in detailed inventories. (Attachment 1) b) Chemical herbicide application – per Chemical Weed Control specifications, herbicide can be applied to weeds in planting beds. CITY OF SCHERTZ PAGE 16 Maldonado Nursery & Landscaping Service Agreement c) Planting bed maintenance – All shrubs, ground covers beds, and mulch areas shall be maintained weed free; remove litter when weeding beds as necessary. d) Hedge, ornamental tree, and ground cover trimming shall be done as needed to maintain the shape of the plant material and keep walkways, sidewalks, and parking spaces clear of vegetation. e) “Alien” plants (hackberry, Johnson grass, etc.) sprouting out through shrubs such as knock-out roses or lantana shall be removed at every cycle. f) Contractor shall not allow any performance of work if there is a reasonable possibility of any limb or debris falling on persons, property or other plant material. g) Contractor shall provide barricading and/or coning to prevent unauthorized personnel from entering work zone. h) Under no circumstances shall a partially cut limb or tree be left standing, and unattended, during rest breaks, lunch breaks or overnight. i) All pruning equipment shall be maintained in a sharp and mechanically functional condition, to provide a precise and clean cut. All pruning equipment is to be sterilized after each tree to prevent spread of disease or organisms. i) All personnel performing hedge, ornamental tree, or groundcover trimming under this specification shall have been trained in proper horticultural and arboricultural methods and techniques for pruning and trimming. All personnel shall have proven successful professional experience in hedge, ornamental tree & ground cover trimming and shall be supervised by horticulture professional staff. ii) All limbs, branches, & other trimming debris shall be completely removed from the premises j) Hedge Trimming Specifications: i) Hedges shall be uniformly pruned according to the growth pattern for each species and maintained to the set trimming height on each pruning cycle. ii) Hedges shall be trimmed to encourage vegetative growth & shall not be trimmed in such fashion as to expose woody stems. k) Ornamental Trees Trimming Specifications: i) All ornamental trees shall be uniformly trimmed to maintain the natural form and shape consistent to the species. ii) Pruned branches shall be removed without leaving a protruding ‘stub’. No flush cuts are to be made. iii) All cuts shall be made using accepted professional arboricultural and horticultural techniques. NO TREE TOPPING OR DEHORNING WILL BE PERMITTED. iv) Basal sprouts and suckers shall be removed at each maintenance cycle. l) Ground Cover Trimming Specifications: i) All ground cover areas shall be uniformly trimmed to maintain the natural form and shape consistent to the species. CITY OF SCHERTZ PAGE 17 Maldonado Nursery & Landscaping Service Agreement ii) All cuts shall be made, using accepted professional horticultural techniques. iii) Groundcovers shall be trimmed to encourage vegetative growth & shall not be trimmed in such fashion as to scalp and expose woody stems. CITY OF SCHERTZ PAGE 18 Maldonado Nursery & Landscaping Service Agreement Exhibit “B” REQUIREMENTS FOR ALL INSURANCE DOCUMENTS The Contractor shall comply with each and every condition contained herein. The Contractor shall provide and maintain the minimum insurance coverage set forth below during the term of its agreement with the City. Any Subcontractor(s) hired by the Contractor shall maintain insurance coverage equal to that required of the Contractor. It is the responsibility of the Contractor to assure compliance with this provision. The City of Schertz accepts no responsibility arising from the conduct, or lack of conduct, of the Subcontractor. INSTRUCTIONS FOR COMPLETION OF INSURANCE DOCUMENT With reference to the foregoing insurance requirements, Contractor shall specifically endorse applicable insurance policies as follows: 1. The City of Schertz shall be named as an additional insured with respect to General Liability and Automobile Liability on a separate endorsement. 2. A waiver of subrogation in favor of The City of Schertz shall be contained in the Workers Compensation and all liability policies and must be provided on a separate endorsement. 3. All insurance policies shall be endorsed to the effect that The City of Schertz will receive at least thirty (30) days written notice prior to cancellation or non-renewal of the insurance. 4. All insurance policies, which name The City of Schertz as an additional insured, must be endorsed to read as primary and non-contributory coverage regardless of the application of other insurance. 5. Chapter 1811 of the Texas Insurance Code, Senate Bill 425 82(R) of 2011, states that the above endorsements cannot be on the certificate of insurance. Separate endorsements must be provided for each of the above. 6. All insurance policies shall be endorsed to require the insurer to immediately notify The City of Schertz of any material change in the insurance coverage. 7. All liability policies shall contain no cross liability exclusions or insured versus insured restrictions. 8. Required limits may be satisfied by any combination of primary and umbrella liability insurances. 9. Contractor may maintain reasonable and customary deductibles, subject to approval by The City of Schertz. 10. Insurance must be purchased from insurers having a minimum AmBest rating of B+. 11. All insurance must be written on forms filed with and approved by the Texas Department of Insurance. (ACORD 25 2010/05). Coverage must be written on an occurrence form. 12. Contractual Liability must be maintained covering the Contractors obligations contained in the contract. Certificates of Insurance shall be prepared and executed by the insurance company or its authorized agent and shall contain provisions representing and warranting all endorsements and insurance coverages according to requirements and instructions contained herein. 13. Upon request, Contractor shall furnish The City of Schertz with certified copies of all insurance policies. 14. A valid certificate of insurance verifying each of the coverages required above shall be issued directly to the City of Schertz within ten (10) business days after contract award and prior to starting any work by the successful Contractor’s insurance agent of record or insurance company. Also, prior to the start of any work and at the same time that the Certificate of Insurance is issued and sent to the City of Schertz, all required endorsements identified in sections A, B, C and D, above shall be sent to the City of Schertz. The certificate of insurance and endorsements shall be sent to: City of Schertz emailed to: purchasing@schertz.com Purchasing Department Faxed to: 210-619-1169 1400 Schertz Parkway Schertz, TX 78154 CITY OF SCHERTZ PAGE 19 Maldonado Nursery & Landscaping Service Agreement CITY OF SCHERTZ PAGE 20 Maldonado Nursery & Landscaping Service Agreement (Instructions for completing and submitting a certificate to the City of Schertz) Complete the certificate of insurance with the information listed below: A) Certificate of Insurance date B) Producer (Insurance Agency) Information – complete name, address, telephone information, & email address. C) Insured’s (Insurance Policy Holder) Information – complete name & address information D) Insurer (name/names of insurance company) **(Remember the city requires all insurance companies to be Authorized to do business in the State of Texas be rated by A.M. Best with a rating of B+ (or better) Class VI (or higher) or otherwise be acceptable to the City if not rated by A.M. Best) E) NAIC # (National Association of Insurance Commissioners, a # that is assigned by the State to all insurance companies) F) Insurer letter represents which insurance company provides which type of coverage from D G) General Liability Insurance Policy – must have an (x) in box. Also, “Occurrence” type policy – must have an (x) in the box (occurrence policy preferred but claims made policy can be accepted with special approval) H) This section shall be filled in with “Y” for yes under Additional Insured for all coverages, except for Contractor Liability and Workers’ Compensation. There shall also be a “Y” for yes under all coverages for subrogation waived. I) Automobile Liability Insurance – must be checked for Any Auto, All Owned Autos, Hired Autos J) Umbrella Coverage – must be checked in this section and by occurrence whenever it is required by written contract and in accordance with the contract value. K) Worker’s Compensation and Employers Liability Insurance – information must be completed in this section of the certificate of insurance form (if applicable). L) Builder’s Risk Policy – for construction projects as designated by the City of Schertz. Professional Liability Coverage – for professional services if required by the City of Schertz. M) Insurance Policy #’s N) Insurance policy effective dates (always check for current dates) O) Insurance Policy limits (See Insurance Requirements Checklist) P) This section is to list projects, dates of projects, or location of project. Endorsements to the insurance policy(ies) must be provided separately and not in this section. The following endorsements are required by the City of Schertz. (1) Adding the City of Schertz as an additional insured. The “additional insured” endorsement is not required for professional liability and workers compensation insurance; and (2) Waiver of Subrogation (3) Primary and Non-Contributory (4) Cancellation Notice Q) City of Schertz’s name and address information must be listed in this section R) Notice of cancellation, non-renewal, or material change to the insurance policy(ies) must be provided to the City of Schertz in accordance with a cancellation notice endorsement to the policy and/or per the policy provisions based on the endorsement adding the city as an additional insured. (Sec. 1811.155, Tex. Ins. Code) S) The certificate must be signed by the Authorized Agent in this section of the certificate form. CITY OF SCHERTZ PAGE 21 Maldonado Nursery & Landscaping Service Agreement Exhibit “C” EVIDENCE OF INSURANCE CITY OF SCHERTZ PAGE 22 Maldonado Nursery & Landscaping Service Agreement ATTACHMENT ONE CONTRACT PROPERTIES PROPERTIES FROM FORM A-1 The following properties shall be maintained every fourteen (14) days for twenty-four (24) cycles. 1 Ashley Park 534 Ashley Park 5.07 2 Cove Trail Drainage Lot adjacent to Ashley Park 0.49 3 Crescent Bend Nature Park 12780 Schaefer Rd 180.74 4 Cut-Off Park 700 Block of FM 1518 58.23 5 Cypress Point Park 5526 Cypress Point 10.50 6 Forest Ridge Park 17529 Wiederstein Rd 13.91 7 Great Northern Trail Schertz Parkway to Forest Ridge Park 7.96 8 Gutierrez Garden Park 1231 Borgfeld Rd 2.09 9 Hallie's Cove Future Park 13237 Hallie Glade 4.21 10 Heritage Oaks Park 11700 Longleaf Pky 13.12 11 Lone Oak Park 100 Block of Roundtree Dr 0.34 12 Mary Whitfield Burks Park 3175 Schertz Pkwy 1.96 13 North Center 3501 Morning Dr 2.07 14 Oak Forest Park 4200 Block of FM 3009 2.58 15 Old Animal Control Building 1298 Borgfeld Rd 1.73 16 Palm Park 200 Block of FM 78 2.37 18 Pickrell Park 701 Oak Street 16.92 19 Rhine Valley Park 9958 Mulhouse Dr 5.01 20 The Park at Woodland Oaks 905Woodland Oaks Dr 1.82 22 Wendy Swan Memorial Park 4601 Cherry Tree Dr 2.68 23 Zuehl Lot 107 Zuehl Rd 0.55 Agenda No. 8.   CITY COUNCIL MEMORANDUM    City Council Meeting:February 28, 2023 Department:Executive Team Subject: Resolution No. 23-R-18 - Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas approving a request for a Schertz Main Street Local Flavor Economic Development Grant for 817 Main Street. (S.Williams/B. James) BACKGROUND The Owner of 817 Main, currently occupied by Greyhouse Blooms and formerly the Contreras Flower Shop, continues to work to renovate and update the structure. To date, three Main Street Local Flavor Grants have been approved for the property with grants to be paid up to $12,000. So far the City has paid $5,621.53 in grants. The owner is needing to do work to the front window, the cost is estimated to be $1,265 with the 50% portion to be paid by the City being $632.50.  GOAL Promote and enhance commercial activity along Main Street to promote the economic, cultural and general welfare of the public. The area around Main Street in Schertz once served as the commercial and social hub of the community. The City seeks to improve the image of the area around Main Street through matching grants that promote local economic development and stimulate business and commercial activities.  COMMUNITY BENEFIT Encourage the attraction of small businesses that will create local charm and help develop a sense of place around Main Street. Promote commercial development. Stabilize and improve property values. Foster civic pride. Strengthen the economy of the City by protecting and enhancing the attractiveness of the Main Street area to residents and visitors, as well as provide support of local businesses.  SUMMARY OF RECOMMENDED ACTION Staff recommends approval of Resolution 23-R-18, approving a Schertz Main Street Local Flavor Economic Development Grant for up to $632.50 for 817 Main Street.  FISCAL IMPACT The maximum fiscal impact of approval of this grant is $632.50. The City budgets $50,000 annually for the Main Street Grant programs. The current outstanding liabilities for the Main Street Grant programs total $74,128.47. While this is above the $49,128.47 of funding left, the City has traditionally either tapped into Contingency Funds or submitted a budget adjustment to Council for approval. One aspect of this program is that the property owner has a year to complete the work (or seek re-approval), so grants can extend past a fiscal year.  RECOMMENDATION Approval of Resolution 23-R-18. Attachments res 23 r 18 817 Main 4th grant  817 Main LFA 4  RESOLUTION NO. 23-R-18 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS APPROVING A REQUEST FOR A SCHERTZ MAIN STREET LOCAL FLAVOR ECONOMIC DEVELOMENT GRANT FOR 817 MAIN STREET IN THE CITY OF SCHERTZ, TEXAS, AND RELATED MATTERS IN CONNECTION THEREWITH WHEREAS, The City of Schertz desires to protect, enhance, and preserve the historic resources and landmarks which represent distinctive elements of Schertz’ historic, architectural, economic, cultural, and social heritage by providing property owners and incentive for protecting their property; and WHEREAS, the City of Schertz desires to encourage the attraction of small businesses that will create local charm and help develop a sense of place in and around Main Street; WHEREAS, the City of Schertz desires to stabilize and improve property values; and WHEREAS, Foster civic pride in the beauty and accomplishments of the past, and to promote the use of the historic structures for the culture, education, and general welfare of residents; and WHEREAS, Strengthen the economy of the city by protecting and enhancing the attractiveness of the Main Street area to residents and visitors, as well as provide support and stimulus to businesses. WHEREAS, the City Council approved the Schertz Main Street Local Flavor Economic Development Grant; WHEREAS, staff is in support of this program and recommended approval of the grant request for 817 Main Street for up to $632.50; NOW THEREFORE, BE IT RESOLVED, THAT THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby approves the Schertz Main Street Local Flavor Economic Development Grant request for 817 Main Street subject to the approved criteria of the program and execution of a funding agreement generally as outlined in Exhibit “A”. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 28th day of February, 2023. CITY OF SCHERTZ, TEXAS ____________________________________ Ralph Gutierrez, Mayor ATTEST: Sheila Edmondson, Interim City Secretary (CITY SEAL) Exhibit A PAGE 1 OF 5 STATE OF TEXAS § § COUNTY OF BEXAR § SCHERTZ MAIN STREET LOCAL FLAVOR ECONOMIC DEVELOPMENT PROGRAM FUNDING AGREEMENT BETWEEN THE CITY OF SCHERTZ, TEXAS AND Jason Contreras FOR EXPENDITURE OF LOCAL FLAVOR GRANT FUNDS This Local Flavor Development Program Funding Agreement (AGREEMENT) is made and entered into by and between the City of Schertz, Texas (CITY) and Jason Contreras, (ENTITY). WHEREAS, the ENTITY has developed a proposal to Make window repairs to 817 Main (the “Project”); and WHEREAS, Section 380.001 of the Texas Local Government Code, as amended, allows the governing body of a municipality to establish and provide for the administration of one or more programs to promote state and local economic development and to stimulate business and commercial activity in the municipality; and WHEREAS, the Schertz Main Street Local Flavor Economic Development Program is intended to encourage and expansion and attract small businesses that create local charm and help develop a sense of place in and around Main Street, promote commercial development, stabilize and improve property values, foster civic pride, and protect and enhance the attractiveness of the Main Street area to residents and visitors; and WHEREAS, funding for the Schertz Main Street Local Flavor Economic Development Program will be provided annually through the City’s General Fund; and WHEREAS, the Schertz Main Street Local Flavor Economic Development Program will enhance other city efforts to improve, beautify, and promote economic development in the Main Street area. WHEREAS, the area around Main Street in Schertz once served as commercial and social hub of the community; and WHEREAS, the City seeks to improve the image of the area around Main Street through restoration and rehabilitation of structures in the Main Street area to serve as a commercial, social, cultural and tourism hub of the City; and WHEREAS, the City Council of the City of Schertz desires to provide funds to Jason Contreras (ENTITY). NOW, THEREFORE, it is mutually agreed by and between the CITY and ENTITY as follows: PAGE 2 OF 5 GENERAL PROVISIONS Section 1. Purpose. The purpose of this Agreement is to provide funding to the ENTITY for the project identified in the attached Exhibit “A” (the “Project”), the intent of which is to promote state and local economic development and to stimulate business and commercial activity in the municipality to encourage and expansion and attract small businesses that create local charm and help develop a sense of place in and around Main Street, promote commercial development, stabilize and improve property values, foster civic pride, and protect and enhance the attractiveness of the Main Street area to residents and visitors. Section 2. Obligation of the ENTITY. The ENTITY shall use all of the awarded funds provided by the CITY in accordance with Chapter 351 of the Texas Tax Code, the ENTITY’S funding application, and the attached Exhibit “A”. Section 3. Reporting Requirements of the ENTITY. The ENTITY shall deliver a detailed accounting of the expenditures for the Project within thirty (30) days after completion of the Project (the “Post Event Report”). The Post Event Report shall include copies of receipts and other documents establishing the expenditures for the project. The CITY shall not make reimbursements for expenditures where no receipt or invoice is provided. Partial or incomplete reports will not be accepted. Section 4. Authorization of Payment. Subject to the ENTITY’S satisfactory performance and compliance with the terms of this AGREEMENT, the CITY agrees to pay the ENTITY up to fifty percent (50%) of the Project. The Project is estimated to be approximately $1,265.00 and fifty percent of which, is capped at $632.50 for work falling within the criteria for a façade improvement grant. Payment(s) will be made within forty-five (45) days of acceptance of the complete Post Event Report. Partial or incomplete reports will not be accepted. Only expenditures that meet Chapter 351 of the Tax Code and this AGREEMENT shall be reimbursed. Section 5. Appeal Process. Any ENTITY wishing to appeal the decision of the CITY must present their appeal in writing within ten (10) business days of funding denial. Section 6. Rights. The City of Schertz has the right, at any time, to inspect the books or records of the ENTITY that may relate to performance of this AGREEMENT. The CITY, at its sole expenses, has the right to conduct an audit of the ENTITY or Project. Section 7. Term. The AGREEMENT shall become effective as of the date entered below. The AGREEMENT shall terminate one year from its effective date or once the terms have been met, whichever occurs first. Section 8. Indemnification. The ENTITY agrees to defend, indemnify and hold harmless the CITY, its officers, agents and employees, against any and all claims, lawsuits, judgments, cause of action, costs and expenses for personal injury (including death), property damage or other harm for which recovery of damages is sought, suffered by any person or persons, that may arise out of or be occasioned by the ENTITY’s breach of any of the terms or provisions of this AGREEMENT, or by any negligent act or omission of the ENTITY, its officers, agents, servants, employees, contractors, or subcontractors, in the PAGE 3 OF 5 performance of this AGREEMENT; except that the indemnity provided for in this paragraph shall not apply to any liability resulting from the sole negligence of the CITY, its officers, agents, employees or separate contractors, and in the event of joint and concurrent negligence of both the ENTITY and the CITY under Texas law and without waiving any defenses of the parties under Texas law. The provisions of this paragraph are solely for the benefit of the parties hereto and not intended to create or grant any rights, contractual or otherwise, to any other person or entity. Both parties expressly agree that this AGREEMENT does not assign any responsibility for civil liability to the City of Schertz that may arise by virtue of this AGREEMENT. Section 9. Termination. A party may terminate this AGREEMENT in whole or in part if the other party fails to comply with a term of the AGREEMENT, including the inability of the ENTITY to conform to any change required by federal, state or local laws or regulations; or for the convenience of either party. The terminating party shall provide written notification to the other party of the decision to terminate this AGREEMENT within thirty (30) days before the effective date of termination. A party may terminate the AGREEMENT for breach of any provision of this AGREEMENT, upon written notice of the breach and the breaching party shall have ten (10) days after receipt of the written notice in which to cure the breach to the satisfaction of the non-breaching party. Section 10. Notice. All notices required or permitted under this AGREEMENT shall be in writing and shall be delivered in person or mailed as follows: to the CITY at: City of Schertz Attention: City Manager 1400 Schertz Parkway Schertz, TX 78154 (210) 619-1000 To: Jason Contreras Attention: Jason Contreras 817 Main Schertz, Texas 78154 MISCELLANEOUS Section 11. Entire Agreement. This AGREEMENT constitutes the entire agreement of the parties regarding the subject matter contained herein. The parties may not modify or amend this AGREEMENT, except by written agreement approved by the governing bodies of each party and duly executed by both parties. Section 12. Approval. This AGREEMENT has been duly and properly approved by each party’s governing body and constitutes a binding obligation on each party. PAGE 4 OF 5 Section 13. Assignment. Except as otherwise provided in this AGREEMENT, a party may not assign this AGREEMENT or subcontract the performance of services without first obtaining the written consent of the other party. Section 14. Non-Waiver. A party’s failure or delay to exercise right or remedy does not constitute a waiver of the right or remedy. An exercise of a right or remedy under this AGREEMENT does not preclude the exercise of another right or remedy. Rights and remedies under this AGREEMENT are cumulative and are not exclusive of other rights or remedies provided by law. Section 15. Paragraph Headings. The various paragraph headings are inserted for convenience of reference only,and shall not affect the meaning or interpretation of this AGREEMENT or any section thereof. Section 16. Attorney fees. In any lawsuit concerning this AGREEMENT, the prevailing party shall be entitled to recover reasonable attorney’s fees from the nonprevailing party, plus all out-of-pocket expense such as deposition costs, telephone, calls, travel expenses, expert witness fees, court costs, and their reasonable expenses, unless otherwise prohibited by law. Section 17. Severability. The parties agree that in the event any provision of this AGREEMENT is declared invalid by a court of competent jurisdiction that part of the AGREEMENT is severable and the decree shall not affect the remainder of the AGREEMENT. The remainder of the AGREEMENT shall be in full force and effect. Section 18. Venue. The parties agree that all disputes that arise of this AGREEMENT are governed by the laws of the State of Texas and venue for all purposes herewith shall be in Milam County, Texas. Section 19. Certificate of Insurance. The ENTITY agrees to provide a certificate of insurance for liability and worker’s compensation insurance or letter of self-insurance on its letterhead indicating its self-insured status before any event awarded funding under this AGREEMENT. The cost of the insurance herein mentioned to be secured and maintained by the ENTITY shall be borne solely by the ENTITY. IN WITNESS HEREOF, the CITY and ENTITY make and execute this AGREEMENT to be effective this day of , 2023. CITY OF SCHERTZ, TEXAS ENTITY City Manager Jason Contreras PAGE 5 OF 5 ATTEST: ________________________________ City Secretary PAGE 6 OF 5 EXHIBIT A Replace Large Storefront Window Agenda No. 9.   CITY COUNCIL MEMORANDUM    City Council Meeting:February 28, 2023 Department:Public Works Subject: Resolution No. 23-R-20 - Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas approving and authorizing a CCN transfer between the City of Selma and City of Schertz to amend CCN boundaries and other matters in connection therewith. (B. James/L. Busch/S. Mayfield) BACKGROUND The City of Selma provides retail water service CCN No. 11522, issued by the Public Utility Commission of Texas ("PUC") for the provision of retail water services to certain areas in and about Bexar County, Comal County and Guadalupe County. The City of Schertz provides retail water service CCN No. 10645, issued by the PUC, for the provision of retail water to certain areas in and about Bexar County, Comal County, and Guadalupe County. The boundaries of the City of Selma water CCN and the City of Schertz water CCN are adjacent to one another in various areas. The property owner has requested Selma transfer approximately 141.494 acres of its water CCN to the City of Schertz. The City of Selma has already approved the proposed transfer request. GOAL To provide water service to new developing areas inside the city limits of Schertz.  COMMUNITY BENEFIT To ensure the future water customers in this recently annexed portion of the City have the same water and wastewater provider to better serve the citizens of the City. SUMMARY OF RECOMMENDED ACTION Staff recommends Council approve the Resolution authorizing execution of the water CCN transfer agreement from the City of Selma to the City of Schertz for the Royal Manufacturing Subdivision Phase II. RECOMMENDATION Approval of Resolution 23-R-20. Attachments Res 23 R 20  Exhibit A Petition for CCN Transfer  RESOLUTION NO. 23-R-20 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS APPROVING AND AUTHORIZING THE WATER CCN TRANSFER FROM CITY OF SELMA TO THE CITY OF SCHERTZ, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, City of Schertz provides retail water service under water CCN No. 10645, issued by the Public Utility Commission of Texas ("PUC") to the City of Schertz, for the provision of retail water services to certain areas in and about Bexar County, Comal County and Guadalupe County, the boundaries of which are depicted in Exhibit A (the “Water CCN Transfer Agreement”), Exhibit 2 (“Current Schertz Water CCN Map) and attached hereto; WHEREAS, City of Selma provides retail water service under water CCN No. 11522, issued by the PUC, for the provision of retail water to certain areas in and about Bexar County, Comal County, and Guadalupe County, the boundaries of which are depicted in Exhibit A, Exhibit 3 (“Current Selma Water CCN Map”); WHEREAS, the boundaries of the City of Schertz CCN and the City of Selma CCN are adjacent to one another; WHEREAS, the Developer owns a 141.494 acre tract of real property within Comal County (the” Transfer Property”) and more particularly described and depicted in Exhibit A, Exhibits 4 (“Metes and Bounds and Preliminary Plat”) and 5 (“Small Scale (General Location) Map”); WHEREAS, the Developer's Property is known as the Royal Manufacturing Subdivision Phase II; WHEREAS, the Developer has requested that City of Selma transfer a portion of its water CCN No. 11522 to City of Schertz so that City of Schertz can provide retail water services to the Transfer Property; WHEREAS, the Transfer Property is currently undeveloped and City of Selma does not currently have any water connections or water facilities within the Transfer Property; WHEREAS, City of Schertz currently has water connections or water facilities adjacent to, or near the Transfer Property; WHEREAS, City of Schertz and City of Selma are amenable to altering the boundaries of their respective water CCNs by transferring the Transfer Property contained within the boundaries of the City of Selma CCN No. 11522 to City of Schertz so that the Transfer Property is removed from the City of Selma CCN No. 11522 and added to the City of Schertz CCN No. 10645; WHEREAS, Developer has provided to City of Schertz maps and GIS data illustrating the Transfer Property to include with a petition to the PUC to transfer the Transfer Property from City of Selma CCN No. 11522 to the City of Schertz water CCN No. 10645; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1.The City Council hereby authorizes the City Manager to execute an agreement to the transfer the water CCN from City of Selma to the City of Schertz as attached in Exhibit A, Exhibit 1 (“Water CCN Transfer Agreement Form”). Section 2.The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3.All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4.This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5.If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6.It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7.This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 28th day of February, 2023. CITY OF SCHERTZ, TEXAS ________________________________ Ralph Gutierrez, Mayor ATTEST: _______________________________ Sheila Edmondson, City Secretary (city seal) Exhibit A Agenda No. 10.   CITY COUNCIL MEMORANDUM    City Council Meeting:February 28, 2023 Department:Finance Subject: Resolution No. 23-R-19 - Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas accepting the Annual Comprehensive Financial Report - ACFR Fiscal Year 2021-22. (S. Gonzalez/J. Walters) BACKGROUND State law requires that local governments complete an annual audit by an independent licensed public accounting firm. This is the official Fiscal Year 2021-22 Annual Comprehensive Financial Report (ACFR) for the City of Schertz as of September 30, 2022. These statements show the financial performance and financial health of the City for the previous fiscal year. The presentation will be made by Travis Rogers, CPA, Senior Audit Associate, of Patillo, Brown, and Hill, LLP. The Audit Committee consisting of Mayor Gutierrez, Councilmember Heyward, City Manager Steve Williams, Assistant City Manager Sarah Gonzalez, Finance Director James Walters, and Assistant Finance Director Babett Martin met on February 13, 2023 to review the audit findings and financial statements as presented by the auditor, Paula Lowe, Audit Partner, of Patillo, Brown, and Hill, LLP. GOAL Inform City Council about the financial performance and health of the City. COMMUNITY BENEFIT The annual audit provides the community assurance this city is in good financial standing and operating in compliance with generally accepted accounting principles and governmental accounting standards. SUMMARY OF RECOMMENDED ACTION Approval of Resolution No. 23-R-19 accepting the FY 2021-22 ACFR. RECOMMENDATION Staff recommends approval of Resolution No. 23-R-19 regarding the Fiscal Year 2021-22 Annual Comprehensive Financial Report.  Attachments Resolution 23-R-19  2021-22 Annual Comprehensive Financial Report  Single Audit FY 2021-22  Required Communication  RESOLUTION NO. 23-R-19 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE APPROVAL OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR 2021-22, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City staff of the City of Schertz (the “City”) has recommended that the City Council approve the Annual Comprehensive Financial Report for Fiscal Year 2021-22 ; and WHEREAS, the Audit Committee has recommended that it is in the best interest of the City to approve the Annual Comprehensive Financial Report for Fiscal Year 2021-22; and WHEREAS, the City Council has determined that it is in the best interest of the City to approve the Annual Comprehensive Financial Report for Fiscal Year 2021-22. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the approval of the Annual Comprehensive Financial Report for Fiscal Year 2021-22. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. 50506221.1 - 2 - PASSED AND ADOPTED, this 28th day of February 2022. CITY OF SCHERTZ, TEXAS Rafael Gutierrez, Mayor ATTEST: City Secretary, Sheila Edmondson (CITY SEAL) CITY OF SCHERTZ, TEXAS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 OFFICIALS ISSUING REPORT Steve Williams City Manager James Walters Director of Finance CITY OF SCHERTZ, TEXAS FOR THE YEAR ENDED SEPTEMBER 30, 2022 TABLE OF CONTENTS Page Number INTRODUCTORY SECTION Letter of Transmittal ..................................................................................................... i - iv City Officials ................................................................................................................. v Organizational Chart ..................................................................................................... vi Certificate of Achievement ............................................................................................. vii FINANCIAL SECTION Independent Auditor’s Report ......................................................................................... 1 – 3 Management Discussion and Analysis .............................................................................. 4 – 12 Basic Financial Statements Government-Wide Financial Statements: Statement of Net Position ......................................................................................... 13 - 14 Statement of Activities ............................................................................................. 15 – 16 Fund Financial Statements: Governmental Funds Balance Sheet ...................................................................................................... 17 – 18 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ............................................................... 19 Statement of Revenues, Expenditures, and Changes in Fund Balances ................................................................................. 20 – 21 Reconciliation of Revenues, Expenditures and Changes In Fund Balances – Governmental Funds to the Statement of Activities ...................................................................................... 22 Proprietary Funds Statement of Net Position ...................................................................................... 23 - 24 Statement of Revenues, Expenses, and Changes in Fund Net Position ............................................................................. 25 Statement of Cash Flows ....................................................................................... 26 - 27 Notes to the Financial Statements ............................................................................. 28 – 54 Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance – General Fund – Budget and Actual ...................................................... 55 - 56 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Economic Development Corporation – Budget and Actual ....................... 57 Notes to Budgetary Schedules ..................................................................................... 58 Schedule of Changes in Net Pension Liability and Related Ratios ....................................................................................... 59 - 60 Schedule of Employer Contributions ............................................................................. 61 - 62 Schedule of Changes – TMRS Other Post-Employment Benefit Liability and Related Ratios ....................................................................................... 63 Schedule of Changes – City Retiree Health Other Post-Employment Benefit Liability and Related Ratios ............................................................................ 64 Combining and Individual Fund Statements and Schedules Comparative Balance Sheets – General Fund ................................................................. 65 Comparative Schedules of Revenues, Expenditures, and Changes in Fund Balance – General Fund ................................................................................. 66 Comparative Balance Sheets – Economic Development Corporation ................................. 67 Comparative Schedules of Revenues, Expenditures, and Changes in Fund Balance – Economic Development Corporation ................................................. 68 Comparative Balance Sheets – Debt Service Fund .......................................................... 69 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Debt Service Fund ......................................... 70 Comparative Balance Sheets – Capital Projects Fund ...................................................... 71 Comparative Schedules of Revenues, Expenditures, and Changes in Fund Balance – Capital Projects Fund ...................................................................... 72 Combining Balance Sheet – Nonmajor Governmental Funds ............................................ 73 - 74 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds ...................................... 75 - 76 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Hotel Occupancy Fund ................................... 77 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Park Fund..................................................... 78 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Tree Mitigation Fund ...................................... 79 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Treasury Forfeitures Fund ............................................................ 80 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Justice Forfeitures Fund ............................................................... 81 Schedule of Revenues, Expenditures, and Changes in Fund Balance - State Forfeitures Fund ................................................................. 82 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Library Advisory Board Fund ........................... 83 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual - Historical Committee Fund .............................. 84 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Capital Recovery Roadways ......................................................... 85 STATISTICAL SECTION Net Position by Component .............................................................................. 1 86 - 87 Change in Net Position .................................................................................... 2 88 - 91 Fund Balances of Governmental Funds .............................................................. 3 92 - 93 Changes in Fund Balances, Governmental Funds ................................................. 4 94 - 95 Tax Revenue by Source – Governmental Funds .................................................. 5 96 - 97 Total Water and Sewer Consumption and Rates .................................................. 6 98 Principal Water and Sewer Consumers ............................................................... 7 99 Direct and Overlapping Property Tax Rates ........................................................ 8 100 Principal Property Taxpayers ............................................................................ 9 101 Property Tax Levies and Collections .................................................................. 10 102 Taxable Assessed Value ................................................................................... 11 103 - 104 Ratios of Outstanding Debt by Type .................................................................. 12 105 - 106 Ratios of General Bonded Debt Outstanding ....................................................... 13 107 Direct and Overlapping Governmental Activities Debt .......................................... 14 108 Debt Margin Information .................................................................................. 15 109 Pledged Revenue Coverage .............................................................................. 16 110 Demographic and Economic Statistics ................................................................ 17 111 Top Ten Principal Employers ............................................................................. 18 112 Full-Time Equivalent City Governmental Employers by Function ............................ 19 113 - 114 Operating Indicators by Function/Program ......................................................... 20 115 - 118 Capital Asset Statistics by Function/Program ...................................................... 21 119 - 120 INTRODUCTORY SECTION §CC1HllElRlrZ COMMUNITY SERVICE OPPORTUNITY February 28, 2023 To the Honorable Mayor, City Council, and the Citizens·ofSchertz: State law requires that local governments publish a complete set of financial statements presented in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) and audited in accordance with generally accepted auditing standards in the United States of America by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the annual comprehensive fmancial report of the City of Schertz for the fiscal year ended September 30, 2022. This report consists of management's representations concerning the fmances of the City of Schertz. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Schertz has established a comprehensive internal control framework that 1s designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Schertz' s fmancial statements in conformity with U.S. GAAP. Because the cost of internal controls should not outweigh their benefits, the City· of Schertz comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the fmancial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this fmancial report is complete and reliable in all material respects. The City of Schertz's fmancial statements have been audited by Pattillo, Brown & Hill, LLP a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the fmancial statements of the City of Schertz for the fiscal year ended September 30, 2022, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial stat�ments; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Schertz's fmancial statements for the fiscal year ended September 30, 2022, are fairly presented in conformity with U.S. GAAP. The independent auditor's report is presented as the first component of the fmancial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic fmancial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Schertz' s MD&A can be found immediately following the report of the independent auditors. Profile of the Government The City of Schertz, incorporated in 1958, is located in the central part of Texas, which is considered to be a top growth area in the state, and one of the top growth areas in the country. The City of Schertz currently occupies a land area of 32.21 square miles with a population of 42,622 in 2021 according to the US Census Bureau. The City of Schertz is empowered to levy a property tax on both real and personal properties located within its boundaries. It also is empowered by state statue to extend its corporate limits by annexation, which occurs periodically when deemed appropriate by the governing body. The City of Schertz has operated under the council-manager form of government since November 30, 1972. Policymaking and legislative authority are vested in a City Council consisting of the Mayor and seven at-large 1400 Schertz Parkway Schertz, Texas 78154 •210.619, 1000 Ill §CClHl[lRTZ I COMMUNITYSERVICE OPPORTUNITY councilmembers. The City Council is responsible for establishing public policy on City matters by the passage of appropriate ordinances and resolutions. The City Manager is responsible for overseeing the day-to-day operations of the government, implementing policy established by City Council, and for appointing the heads of the various departments. The council is elected on a non-partisan basis. Council members serve three-year staggered terms, with two council members elected every three years and then three council members elected the final three years in the cycle. The mayor is elected to serve a three-year term. The City of Schertz provides a full range of services, including police and fire protection, EMS services, library services, the construction and maintenance of streets, recreational facilities, cultural events, and water and sewer services. The annual budget and five-year forecast serve as the foundation for the City of Schertz's financial planning and control. All city departments are required to submit requests for appropriation to the City Manager by June of each year. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents the proposed budget to the council for review in early August. The council then holds public hearings and community meetings on the proposed budget and to adopt a final budget by September 30th. The fiscal year for Schertz is from October 1 through September 30. The appropriated budget is prepared by each department ( e.g. police). The City Manager may make transfers of appropriations within a department. The City Manager may make transfers between departments and funds with City Council approval. Budget to actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund, this comparison is presented on pages 55-56 as part of the required supplementary information. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Schertz operates. Local economy. Economic growth in Schertz remained strong in 2022. The surrounding metro area saw growth evidenced by the Federal Reserve Bank of Dallas reporting the San Antonio Business-Cycle Index increase 7.25% year over year for September 2022. This Index potentially indicates a continued period of economic growth around the state. As of September 2022, the unemployment rate for Texas was 3.8% and several metro areas including Austin, Dallas­Fort Worth, and San Antonio, are below the state average. Schertz, as included in the San Antonio-New Braunfels MSA, had an unemployment rate of 3.5% during this time. As another indicated of economic growth, the City of Schertz realized a 7.4% increase year-over-year in sales tax collections during the fiscal year. The City's average longer term growth is 7% which indicates the City has maintained its previous growth from the recent years and continued its growth at historic averages. New residential construction has been slowing in the city the past few years, cutting revenue by 20% over last year. Despite the downward trend in new residential permits, overall new taxable value has grown by the historic average of 3 % lead by commercial construction. In the existing industrial park, Building 4 remains empty while Buildings 5,6 and 7 have all been leased. Industrial development continued to push North along IH-35 across FM 3009 with Phelan-Bennet completing and filling 169,525 sq ft of speculative warehouse distribution on Four Oaks Lane. Doerr Lane Logistics Center is almost complete, with 2/3 of the building pre-leased. Another 112,000 square foot warehouse/ distribution center is set to begin construction this year off FM 3009. In Northern Schertz, redevelopment, expansion, and significant speculative development characterized 2022. In June 2021, Caterpillar again invested in Schertz with an estimated $24,000,000 adding an additional 1400 Schertz Parkway •Schertz, Texas 78154 •210.619.1000 • §<C]H[]E]R.l[l COMMUNITY SERVICE OPPORTUNITY manufacturing line. Sysco Central Texas site was awarded economic development incentives to secure a 100,000 sq ft expansion of their existing facility, currently under construction. Long-term financial planning. The community approved bond propositions in November 2010 for quality of life projects which included an aquatics facility, improvements to the baseball fields and soccer fields, building a new animal adoption facility, and improvements to Main Street. The only remaining project are the Main Street improvements, which is currently in the planning and engineering phase. In November 2015, the City placed 2 bond propositions before the voters totaling $15 million. $7 million was for FM roadways which the City will partner with the Texas Department of Transportation, who will provide matching funds, and $8 million for a new Fire Station located in the southern portion of Schertz. $2 million for the FM roadways have been issued and sent to the Texas Department of Transportation for improvements on FM 1103 as of July 2018. The remaining $5 million for FM 1518 was issued in 2022 with the expected let date in 2023. In June 2018, the second $4 million was issued for the Fire Station to begin construction. The fire station was completed in November 2021. In November 2021, the City placed 1 bond proposition before voters totally $15 .45 million for Fire Station number 4 which passed. The funds for the new fire station were issued in 2022 and purchase of the fire engine and the land are underway. Current Year Budget Initiatives. For FY 2022-23, the City has a host of new positions and initiatives approved for this year. Council also approved a 3% across the board pay raise based on the Employment Cost Index (ECI) as well as an additional increase based on tiers. The highest pay brackets received 1 %, the middle pay brackets received 2% and the lowest bracket received 4%. There were 24 new positions approved in the General Fund and 8 in EMS. The General Fund included 3 Firefighters, a Fire Inspector, an Engineering Inspector, an Engineer, an IT Public Safety Tech, a GIS Specialist, 3 Parks Maintenance Techs, a Recreation Coordinator, a Plans Examiner, a Permit Technician, a Neighborhood Services Officer, 2 School Police Officers, a Traffic Patrol Officer, a Records Specialist, a Parts Clerk, a Part­time Library Programming Specialist, a conversion of 2 10-hour positions in the Library to 20-hour positions, and a Event Attendant. EMS received 8 new ambulance staff to be phased in throughout the year. In addition to the positions, the General Fund was also approved to create a new parking lot at Building 27 and had additional street maintenance funds added. Other improvements to operations included, internet and fiber upgrades, software for bid acceptance, an upgrade to the Police records management system, the return of the Library Hotspot loan program, new and replacement security cameras at public facilities, an increase in contract cleaning and mowing, an upgrade to inventory management software, Microsoft Office Training, and a hard drive shredder. New initiatives included in the budget were the start of annual trail development funding and the Cibolo Creek Clean-Up program. These programs when combined with the new Parks and Neighborhood Services staff will help keep the city looking nice and provide for outdoor activities for citizens. Financial Information: Internal Control. Management is responsible for establishing and maintaining internal controls designed to ensure that assets of the City are protected from loss, theft or misuse and to provide adequate accounting information compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles for local governments as prescribed by the Governmental Accounting Standards Board (GASB), the Financial Accounting Standards Board (F ASB) and the American Institute of Certified Public Acqountants (AICP A). The internal control system is designed to provide reasonable, but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of an 'internal control should not -exceed the benefits derived from the internal control. The City utilizes fmancial accounting software 1400 Schertz Parkway Schertz, Texas 78154 210.619.1000 §<CJH[]CRlCl I COMMUNITYSERVICE OPPORTUNITY which is designed with a system of internal controls. These controls are continually being reevaluated to provide reasonable, but not absolute, assurances. Budget Controls. The City also utilizes budgetary controls. Legally expenditures cannot exceed the appropriated amount. The objective of these budgetary controls is to ensure compliance with the adopted budget approved by the City Council as mandated by the city charter and state law. The levels of budgetary control are established at the line-item basis and at the fund level. Staff believes these controls help monitor and direct approved expenditures to a level within the budget parameters which directly results in a strong financial performance. Financial Results. Assets and fund balances continue to grow as the City grows and fmancial results remain strong. While additional debt was issued during the year, Staff closely monitors and plans the amount of issuance to keep steady debt ratios per capita, per revenue, and per operations tax rate to the debt tax rate. Examples of these ratios can be found in the Statistical Section on pages 105-110. A more detailed summary of the City's Financial Performance is available in the Management Discussion and Analysis section on page 4. Independent Audit. Every year an independent audit is performed of the general ledger, accounts, financial records, and transactions of all city departments. The audit is completed by an independent certified public accounting firm selected by the City Council. The City is in compliance with this requirement and the independent auditor's report by Pattillo, Brown & Hill, LLP. Certified Public Accountants, has been included in this report. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Schertz for its comprehensive annual financial report for the fiscal year ended September 30, 2021. This was the 37th consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized comprehensive annual fmancial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual fmancial report continues to meet the Certificate of Achievement Program's requirements and we will be submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the finance department. We would like to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. In conclusion, we would have none of the success we have enjoyed without the assistance of each and every staff member, as well as the support and strategic direction from the Mayor and the City Council during the strategic planning, pre-budget, and budget approval process. Respectfully submitted, Steve Williams City Manager 1400 Schertz Parkway Schertz, Texas 78154 210.619.1000 James P. Walters Finance Director v CITY OF SCHERTZ, TEXAS CITY OFFICIALS MAYOR RALPH GUTIERREZ MAYOR PRO-TEM ROSEMARY SCOTT CITY COUNCIL MARK E. DAVIS JILL WHITTAKER MICHELLE WATSON MICHAEL DAHLE DAVID SCAGLIOLA ALLISON HEYWARD TIM BROWN CITY MANAGER STEVE WILLIAMS DIRECTOR OF FINANCE JAMES WALTERS CITY ATTORNEY CHARLES ZECH, DENTON, NAVARRO, ROCHA, BERNAL & ZECH, P.C. CITY OF SCHERTZ ORGANIZATIONAL CHART FY 2021-22 *Appointed by City Council Citizens Mayor & City Council Prosecuting Attorney*City Secretary*City Manager* Assistant to the City Manager Public Affairs Assistant City Manager Operations Police Fire Rescue EMS Public Works Fleet & Facility Services Human Resources Assistant City Manager Development Development Services Engineering Parks, Recreation, and Community Service Information Technology Library Geographic Information Systems Finance Executive Director Economic Development Schertz Economic Development Corporation Municipal Court Judge*City Attorney* vi Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Schertz Texas For its Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2021 Executive Director/CEO vii FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT Honorable Mayor and Members of the City Council City of Schertz, Texas Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Schertz, Texas (the “City”), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America. We did not audit the financial statements of the Schertz-Seguin Local Government Corporation, which represents 9.9 percent and 12.4 percent, respectively, of the assets and net position of the Water and Sewer Fund, and 9.5 percent and 12.1 percent, respectively, of the assets and net position of the business-type activities. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Schertz-Seguin Local Government Corporation, is based solely on the report of the other auditors. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement due date, including any currently known information that may raise substantial doubt shortly thereafter. 1 2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control– related matters that we identified during the audit. Report on Summarized Comparative Information We have previously audited the City of Schertz, Texas’ fiscal year 2021 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated March 4, 2022. In our opinion, the summarized comparative information presented herein as of and for the year ended September 30, 2021 is consistent, in all material respects, with the audited financial statements from which it has been derived. 3 Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and pension and OPEB information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual comprehensive financial report (ACFR). The other information comprises the introductory section and statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated ____, 2023, on our consideration of the City of Schertz, Texas’ internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Schertz, Texas’ internal control over financial reporting and compliance. Waco, Texas _____, 2023 MANAGEMENT’S DISCUSSION AND ANALYSIS 4 MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of Schertz, we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City of Schertz for the fiscal year ended September 30, 2022. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report. Financial Highlights The assets and deferred outflows of the City of Schertz exceeded its liabilities and deferred inflows at the close of the most recent fiscal year by $296,744,906 (net position). Of this amount, $53,846,695 (unrestricted net position) may be used to meet the City's ongoing obligations to citizens and creditors. The City's total net position increased by $27,496,211. The primary reason for this increase was an increase in capital contributions of approximately $13 million from the prior year. As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $91,183,806, an increase of $34,064,774 in comparison with the prior year. The primary cause of this increase was a increases in property and sales tax revenues that exceeded expenditure growth. At the end of the fiscal year, the combined total of the General Fund assigned and unassigned fund balances was $13,602,769 which is 36.27% of the general fund expenditures not including capital outlay. The fund balance policy is to reserve at least a 26% balance. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the City's assets, deferred outflows, liabilities, and deferred inflows, with the difference between the former two and latter two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Schertz is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Schertz that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Schertz include general government, public safety, streets and parks, health, and culture and recreation. The business-type activities of the City of Schertz include a water and sewer department and an emergency medical services department. 5 Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Schertz, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The funds of the City of Schertz can be divided into two categories: governmental and proprietary. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government- wide financial statements, governmental fund financial statements focus on near term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information is useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Schertz maintains fifteen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, the debt service fund, the economic development corporation, the capital projects fund, and the American Recovery Plan Act fund, all of which are considered to be major funds. Data from the other ten governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. Proprietary funds. The City of Schertz maintains two types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City of Schertz uses enterprise funds to account for its water and sewer department and for its emergency medical services department. The City also maintains an internal service fund to account for internal charges for medical premiums. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water and sewer department and for the emergency medical services department, both of which are considered to be major funds of the City of Schertz, as well as the internal service fund. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's general fund budgetary schedule. The City of Schertz adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with this budget. The economic development corporation also adopts an annual budget, and a comparison schedule for it also is provided in the required supplementary information. The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City of Schertz, assets and deferred outflows exceeded liabilities and deferred inflows by $296,744,906 at the close of the most recent fiscal year. The largest portion of the City's total net position (69%) reflects its net investment in capital assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding, plus bond proceeds that have not yet been spent. The City of Schertz uses these capital assets to provide services to citizens; consequently, these assets are not available for operational type of future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 6 An additional portion of the City's total net position (13%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $53,846,695, may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City of Schertz is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior fiscal year. 2022 2021 2022 2021 2022 2021 Current and other assets 105,714,129$ 67,416,673$ 73,186,420$ 56,132,860$ 178,900,549$ 123,549,533$ Capital assets 159,972,447 149,570,599 108,872,222 98,743,525 268,844,669 248,314,124 Total assets 265,686,576 216,987,272 182,058,642 154,876,385 447,745,218 371,863,657 Deferred outflows of resources 4,309,869 3,488,506 1,195,882 954,384 5,505,751 4,442,890 Current liabilities 18,382,113 12,946,000 6,911,108 5,316,572 25,293,221 18,262,572 Long-term liabilities 93,693,054 67,867,628 31,871,137 18,214,795 125,564,191 86,082,423 Total liabilities 112,075,167 80,813,628 38,782,245 23,531,367 150,857,412 104,344,995 Deferred inflows of resources 4,374,235 2,130,871 1,274,416 581,986 5,648,651 2,712,857 Net position: Net investment in capital assets 109,746,340 98,444,714 94,997,863 83,941,882 204,744,203 182,386,596 Restricted 32,745,688 28,342,438 5,408,320 8,368,736 38,154,008 36,711,174 Unrestricted 11,055,015 10,744,127 42,791,680 39,406,798 53,846,695 50,150,925 Total net position 153,547,043$ 137,531,279$ 143,197,863$ 131,717,416$ 296,744,906$ 269,248,695$ Government-Wide City of Schertz's Net Position Activities Activities Total Governmental Business-Type The government's net position increased by $27,496,211 during the current fiscal year. The primary cause for the increase was increased revenues; the City recognized approximately $13 million of capital contribution revenue related to dedicated infrastructure assets and also experienced sharp increases in property and sales taxes. These increases stem from the City’s continued rapid population growth; continued new housing and business developments resulted in increased assessed value for property taxes and resulted in the creation of infrastructure that was dedicated to the City. The related population increases resulted in increased economic activity that increased sales tax revenues. 7 The following table indicates changes in net position for governmental and business-type activities followed by graphs displaying total revenues and expenses by type: 2022 2021 2022 2021 2022 2021 Revenues: Program revenues: Charges for services 6,371,968$ 5,448,546$ 40,098,475$ 35,433,956$ 46,470,443$ 40,882,502$ Operating grants & contributions 3,970,029 1,925,939 - - 3,970,029 1,925,939 Capital contributions 6,987,788 7,959,576 6,143,957 6,935,191 13,131,745 14,894,767 General revenues: Property taxes 22,495,628 21,463,804 - - 22,495,628 21,463,804 Other taxes 21,537,297 19,731,490 - - 21,537,297 19,731,490 Investment earnings 709,898 104,613 314,546 68,354 1,024,444 172,967 Miscellaneous 1,138,775 1,408,270 675,739 754,268 1,814,514 2,162,538 Total revenues 63,211,383 58,042,238 47,232,717 43,191,769 110,444,100 101,234,007 Expenses: General government 7,093,652 7,298,193 - - 7,093,652 7,298,193 Public safety 19,580,703 19,008,871 - - 19,580,703 19,008,871 Public environment 8,545,834 5,364,408 - - 8,545,834 5,364,408 Parks and recreation 3,543,978 3,395,458 - - 3,543,978 3,395,458 Cultural 1,168,815 1,087,975 - - 1,168,815 1,087,975 Health - - - - - - Administration 4,455,947 4,360,229 - - 4,455,947 4,360,229 Interest and other fees 2,490,474 1,797,520 - - 2,490,474 1,797,520 Water and sewer - - 27,833,986 25,280,964 27,833,986 25,280,964 EMS - - 8,234,500 7,784,670 8,234,500 7,784,670 Total expenses 46,879,403 42,312,654 36,068,486 33,065,634 82,947,889 75,378,288 Increase in net position before transfers 16,331,980 15,729,584 11,164,231 10,126,135 27,496,211 25,855,719 Transfers 316,216)( 20,354 316,216 20,354)( - - Change in net position 16,015,764 15,749,938 11,480,447 10,105,781 27,496,211 25,855,719 Net position - beginning of year 137,531,279 121,781,341 131,717,416 121,611,635 269,248,695 243,392,976 Net position - end of year 153,547,043$ 137,531,279$ 143,197,863$ 131,717,416$ 296,744,906$ 269,248,695$ Government-Wide City of Schertz's Changes in Net Position Activities Activities Total Business-TypeGovernmental TOTAL REVENUES – GOVERNMENT-WIDE $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 Charges for Services Operating Grants and Contributions Capital Grants and Contributions Property Taxes Other Taxes Unrestricted Investment Earnings Miscellaneous 2022 2021 8 TOTAL EXPENSES – GOVERNMENT-WIDE $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 General Government Public Safety Public Environment Parks and Recreation Cultural Health Administration Interest and Other Fees 2022 2021 GENERAL REVENUE BY SOURCE – GOVERNMENTAL ACTIVITIES Property Tax 49%Sales Tax 39% Franchise Tax 6% Occupancy Tax 2%Investment Earnings 1% Miscellaneous 3% 9 TOTAL REVENUES AND EXPENSES – BUSINESS-TYPE ACTIVITIES $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 2022 2021 Revenues Expenses BUSINESS-TYPE REVENUES AND EXPENSES $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 Water and Sewer Utilities EMS Revenues Nonoperating Revenues Capital Contributions and Transfers Expenses 10 Financial Analysis of the Government's Funds As noted earlier, the City of Schertz uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $91,183,806. Of this total amount, $11,597,909 constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder of fund balance is non-spendable, restricted, committed, or assigned to indicate that it is not available for new spending because it has already been committed to pay debt service, for capital improvement projects, and other assigned purposes. The general fund is the chief operating fund of the City of Schertz. At the end of the current fiscal year, unassigned fund balance of the general fund was $12,246,539, while total fund balance was $17,066,899, an increase of ($588,332) from the prior year. Overall, the increase was caused by a large budgeted transfer out for capital projects, but the fund also experienced increases in property and sales tax revenues in spite of the COVID-19 pandemic. As a measure of the general fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 36.27% of total general fund expenditures, not including capital outlay. The debt service fund has a total fund balance of $1,864,409, all of which is restricted for the payment of debt service. The net increase in fund balance during the current year in the debt service fund was $777,033. This increase was due to regular principal and interest payments on long-term debt being exceeded by interest and sinking property tax revenue during the year. Over time, however, the debt service fund has sufficient cash and equivalents on hand to remain liquid if tax revenues decrease. The capital projects fund has a total fund balance of $41,406,516, an increase of $28,235,552. This was caused by the issuance of multiple new bonds by the City during the year in order to fund future construction projects. The Economic Development Fund presents the activities of the Schertz Economic Development Corporation (the “EDC”), which promotes economic development activities using a portion of the City’s sales tax revenue. At year end, the EDC fund reported an ending fund balance of $26,043,128, which is an increase of $4,236,897 compared to the prior year. The primary cause of this change was sales tax revenue growing faster than expenditures. The American Rescue Plan Act Fund has a total fund balance of $34,618, which consists of interest earned on the $7,816,119 received from the Coronavirus Local Fiscal Recovery Fund grant program. Amounts not spent as of year end are presented as unearned revenue until spent in accordance with the terms of the grant agreement in future years. Proprietary funds. The City's proprietary funds provide the same type of information found in the government- wide financial statements, but in more detail. Unrestricted net position of the water and sewer fund at the end of the year amounted to $41,064,541 and those for the Schertz EMS fund amounted to $1,727,139, which are 153% and 21% of fund operating costs, respectively. The water and sewer fund reported an increase in net position of $10 million. Approximately half of this increase related to revenue recognized for contributed infrastructure assets; the remaining portion of the increase was from operating income, which was consistent with the prior year. Management’s intent is to accumulate operating surplus to fund construction of new water and sewer infrastructure in future years with less reliance on bonded debt. The Schertz EMS fund increased net position by $1.3 million. Revenues and expenses both increased by approximately $1.6 million compared to the prior year. Revenues increased due to increased number of ambulance runs caused by the growth in the population of the EMS service area. Expenses increased primarily from increased salaries that resulted from the compensation study discussed previously. 11 General Fund Budgetary Highlights The general fund expenditures were $2,743,503 more than the $37,155,522 budget. Overall activity in the General Fund increased during the current year as the City emerged from the COVID-19 pandemic, although the amount of growth was less than expected. Revenues were $1,144,325 more than budgeted, primarily due to increased property and sales tax revenues. Overall, ending fund balance in the general fund was $3,284,862 higher than budgeted. CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets. The City's investment in capital assets for its governmental and business-type activities as of September 30, 2022, amounts to $268,844,669 (net of accumulated depreciation), including several projects in progress from voter approved bonds. 2022 2021 2022 2021 2022 2021 Land 8,883,427$ 8,310,986$ 2,415,017$ 1,844,488$ 11,298,444$ 10,155,474$ Water rights - - 70,245 70,245 70,245 70,245 Buildings and improvements 52,701,579 44,588,777 3,703,626 3,609,126 56,405,205 48,197,903 Machinery, equipment, and - vehicles 15,472,681 14,833,547 6,823,569 6,214,967 22,296,250 21,048,514 Infrastructure 136,194,073 129,206,285 115,715,584 105,832,113 251,909,657 235,038,398 Construction in progress 27,684,430 26,695,151 21,661,576 19,942,794 49,346,006 46,637,945 Accumulated depreciation 80,963,743)( 74,064,147)( 41,517,395)( 38,770,208)( 122,481,138)( 112,834,355)( TOTALS 159,972,447$ 149,570,599$ 108,872,222$ 98,743,525$ 268,844,669$ 248,314,124$ Activities Activities Total Governmental Business-Type Significant capital asset activity for the year included improvements to streets and infrastructure of $16 million and land purchases of $1.1 million. Additional information on the City's capital assets can be found in note II.F. to the basic financial statements. LONG TERM DEBT At the end of the current fiscal year, the City of Schertz had total long-term debt outstanding of $118,036,445. The related principal and interest payment for the bonds are backed by an annual ad valorem tax levied against all taxable property within the City. The City of Schertz maintains a "AA+" rating from Standard and Poors. 2022 2021 2022 2021 2022 2021 General obligation bonds 55,070,000$ 40,390,000$ 4,265,000$ 2,895,000$ 59,335,000$ 43,285,000$ Certificates of obligation 26,135,000 14,200,000 22,845,000 10,655,000 48,980,000 24,855,000 Financing arrangements 109,228 291,535 327,685 475,121 436,913 766,656 Premium on bonds 5,501,635 2,502,146 2,217,980 772,802 7,719,615 3,274,948 Compensated absences 1,200,065 1,178,062 364,852 364,852 1,564,917 1,542,914 TOTALS 88,015,928$ 58,561,743$ 30,020,517$ 15,162,775$ 118,036,445$ 73,724,518$ Activities Activities Total Governmental Business-Type Total debt increased compared to the prior year due to the issuance of multiple new bonds issued to fund future construction and capital improvement projects throughout the City. Additional information on the City's long-term debt can be found in note II.G. to the basic financial statements. Economic Factors and Next Year's Budgets and Rates At the end of the last fiscal year, the assigned and unassigned fund balance in the general fund increased to $13.6 million from $13.0 million. There was a decrease budgeted of $600 thousand in the original adopted budget but due to the above expected performance of sales taxes and new commercial permits, the city was able to increase the fund balance instead. The City of Schertz has appropriated $446,341 of this amount for spending in the 2023 fiscal year budget in accordance to the City’s fund balance policy. The approved tax rate decreased to $0.4950 from $0.5121 per $100 of valuation. Each year the City updates its five-year budgeting forecast and has implemented a long-term debt model to assist management in making informed financial decisions that will impact the community now and in the future. The City’s property tax base continues to expand at around 3% per year while the long term sales taxes are growing at 7% annually. 12 Through 2022 the Schertz industrial parks continued to see rising but competitive vacancy rates supporting brisk speculative development, redevelopment and expansion in the existing industrial park, Northern Schertz, and Southern Schertz.  In the existing industrial park, Building 4 remains empty while Buildings 5, 6 and 7 have all been leased. Industrial development continued to push North along IH-35 across FM 3009 with Phelan-Bennet completing and filling 169,525 sq ft of speculative warehouse distribution on Four Oaks Lane. Doerr Lane Logistics Center is almost complete, with 2/3 of the building pre-leased. Another 112,000 square foot warehouse/distribution center is set to begin construction this year off FM 3009. In Northern Schertz, redevelopment, expansion, and significant speculative development characterized 2022. In June 2021, Caterpillar again invested in Schertz with an estimated $24,000,000 adding an additional manufacturing line. Sysco Central Texas site was awarded economic development incentives to secure a 100,000 sq ft expansion of their existing facility, currently under construction. In Southern Schertz, the SEDC and City staff continue to work with CORE5 on a 1.7M sq. ft. development of speculative industrial product near the intersection of Loop 1604 and IH-10, kicking off industrial development along IH-10. Staff will continue to watch as the economy slows down. During COVID and the great recession, property values continued to rise and no discernable impacts of foreclosures. Sales taxes have been recession resistant in Schertz due to the business types and markets however, new residential development has slowed down over the past few years. Staff is factoring this in its 5-year forecast for slower growth. Overall, the City of Schertz continues to be an extremely attractive option as a center for logistics and distribution. Accelerated by the rising demand for delivery to consumers and changes in supply chain management philosophy moving from “just in time” to “just in case,” Schertz’s location along IH-35 and IH-10 corridor continues to be a strong advantage. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, City of Schertz, 1400 Schertz Parkway, Schertz, Texas 78154. BASIC FINANCIAL STATEMENTS Governmental Business-Type Activities Activities Total ASSETS Cash and cash equivalents 92,621,639$ 28,415,782$ 121,037,421$ Investments 4,631,657 1,174,985 5,806,642 Receivables, net of allowances: Taxes 4,449,274 - 4,449,274 Accounts and other 2,214,350 7,290,865 9,505,215 Accrued interest - 6,324 6,324 Inventories 154,096 218,418 372,514 Prepaids 29,080 2,311 31,391 Internal balances 16,139)( 16,139 - Restricted assets: Cash and cash equivalents 869,564 16,041,389 16,910,953 Investments - 1,839,607 1,839,607 Service concession arrangement receivable: Due within one year 90,909 - 90,909 Due in more than one year 669,699 - 669,699 Investment in joint venture - 18,180,600 18,180,600 Capital assets: Land 8,883,427 2,415,017 11,298,444 Water rights - 70,245 70,245 Buildings and improvements 52,701,579 3,703,626 56,405,205 Equipment and vehicles 15,472,681 6,823,569 22,296,250 Infrastructure 136,194,073 115,715,584 251,909,657 Construction in progress 27,684,430 21,661,576 49,346,006 Accumulated depreciation 80,963,743)( 41,517,395)( 122,481,138)( Total Assets 265,686,576 182,058,642 447,745,218 DEFERRED OUTFLOWS OF RESOURCES Deferred loss on debt refunding 506,739 6,756 513,495 Deferred OPEB related outflows 643,003 201,016 844,019 Deferred pension related outflows 3,160,127 988,110 4,148,237 Total Deferred Outflows of Resources 4,309,869 1,195,882 5,505,751 LIABILITIES Accounts payable 2,839,420 3,436,486 6,275,906 Accrued liabilities 431,088 142,223 573,311 Retainage payable 344,364 266,714 611,078 Due to other governments 83,060 - 83,060 Unearned revenue 7,762,645 469,445 8,232,090 Accrued interest payable 486,669 189,147 675,816 Customer deposits 105,891 648,307 754,198 Primary Government CITY OF SCHERTZ, TEXAS STATEMENT OF NET POSITION SEPTEMBER 30, 2022 The accompanying notes are an integral part of these financial statements.13 Governmental Business-Type Activities Activities Total LIABILITIES (continued) Noncurrent liabilities: Due within one year: Compensated absences 240,013$ 72,971$ 312,984$ Total OPEB liability 76,415 23,894 100,309 Service concession arrangement 55,241 - 55,241 Long-term debt 5,957,307 1,661,921 7,619,228 Due in more than one year: Compensated absences 960,052 291,881 1,251,933 Total OPEB liability 2,731,673 853,989 3,585,662 Net pension liability 8,735,828 2,731,523 11,467,351 Service concession arrangement 406,945 - 406,945 Long-term debt 80,858,556 27,993,744 108,852,300 Total Liabilities 112,075,167 38,782,245 150,857,412 DEFERRED INFLOWS OF RESOURCES Deferred service concession arrangement 298,422 - 298,422 Deferred OPEB related inflows 415,819 130,006 545,825 Deferred pension related inflows 3,659,994 1,144,410 4,804,404 Total Deferred Inflows of Resources 4,374,235 1,274,416 5,648,651 NET POSITION Net investment in capital assets 109,746,340 94,997,863 204,744,203 Restricted for: Police and municipal court 447,481 - 447,481 PEG capital fees 967,885 - 967,885 Tourism development 1,646,618 - 1,646,618 Economic development 26,077,746 - 26,077,746 Parks and tree mitigation 969,581 - 969,581 Debt service 1,550,080 - 1,550,080 Scholarships and other purposes 1,086,297 - 1,086,297 Construction - 5,408,320 5,408,320 Unrestricted 11,055,015 42,791,680 53,846,695 Total Net Position 153,547,043$ 143,197,863$ 296,744,906$ Primary Government CITY OF SCHERTZ, TEXAS STATEMENT OF NET POSITION SEPTEMBER 30, 2022 14 Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Primary government: Governmental activities: General government 7,093,652$ 686,470$ 3,320,407$ -$ Public safety 19,580,703 3,922,957 641,528 - Public environment 8,545,834 798,955 - 6,987,788 Parks and recreation 3,543,978 652,727 - - Cultural 1,168,815 310,859 8,094 - Administration 4,455,947 - - - Interest 2,490,474 - - - Total Governmental Activities 46,879,403 6,371,968 3,970,029 6,987,788 Business-type activities: Water and sewer 27,833,986 30,677,566 - 6,143,957 EMS 8,234,500 9,420,909 - - Total Business-Type Activities 36,068,486 40,098,475 - 6,143,957 Total Primary Government 82,947,889$ 46,470,443$ 3,970,029$ 13,131,745$ General revenues: Taxes: Ad valorem Sales Franchise fees Hotel/motel Mixed drink Investment earnings Miscellaneous Transfers Total General Revenues and Transfers Change in Net Position Net Position - Beginning Net Position - Ending Program Revenues CITY OF SCHERTZ, TEXAS STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2022 The accompanying notes are an integral part of these financial statements.15 Governmental Business-Type Activities Activities Total 3,086,775)$( -$ 3,086,775)$( 15,016,218)( - 15,016,218)( 759,091)( - 759,091)( 2,891,251)( - 2,891,251)( 849,862)( - 849,862)( 4,455,947)( - 4,455,947)( 2,490,474)( - 2,490,474)( 29,549,618)( - 29,549,618)( - 8,987,537 8,987,537 - 1,186,409 1,186,409 - 10,173,946 10,173,946 29,549,618)( 10,173,946 19,375,672)( 22,495,628 - 22,495,628 18,075,733 - 18,075,733 2,574,041 - 2,574,041 804,132 - 804,132 83,391 - 83,391 709,898 314,546 1,024,444 1,138,775 675,739 1,814,514 316,216)( 316,216 - 45,565,382 1,306,501 46,871,883 16,015,764 11,480,447 27,496,211 137,531,279 131,717,416 269,248,695 153,547,043$ 143,197,863$ 296,744,906$ Primary Government Net (Expense) Revenue and Changes in Net Position 16 General Capital Projects Debt Service Fund Fund Fund ASSETS Cash and cash equivalents 12,128,331$ 42,594,424$ 1,864,408$ Investments 2,404,552 - - Receivables (net of allowances) Taxes 3,174,973 - 172,341 Accounts and other 2,128,452 - - Due from other funds 648,630 - - Inventory 154,096 - - Prepaid items 28,090 - - Restricted assets: Cash and cash equivalents 869,564 - - Total Assets 21,536,688 42,594,424 2,036,749 LIABILITIES Accounts payable 1,752,626 906,624 - Accrued salaries and benefits 431,088 - - Retainage payable - 281,284 - Customer deposits 105,891 - - Due to other governments 83,060 - - Due to other funds 16,139 - - Unearned revenues 50,078 - - Total Liabilities 2,438,882 1,187,908 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues 2,030,907 - 172,340 Total Deferred Inflows of Resources 2,030,907 - 172,340 FUND BALANCES Nonspendable for: Inventory 154,096 - - Prepaid items 28,090 - - Restricted for: Police and public safety/municipal court 302,725 - - Municipal court 812,283 - - PEG capital fees 967,885 - - Capital improvement - 35,863,370 - Debt service - - 1,864,409 Tourism development - - - Parks and tree mitigation - - - Historical Committee and library - - - Economic development - - - Animal control 42,825 - - Scholarships 134,632 - - Committed for: Capital Projects - 5,543,146 - Civic Center/CIED 1,021,594 - - Assigned for: Property replacement 909,889 - - Subsequent year's budget 446,341 - - Unassigned 12,246,539 - - Total Fund Balances 17,066,899 41,406,516 1,864,409 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 21,536,688$ 42,594,424$ 2,036,749$ CITY OF SCHERTZ, TEXAS BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2022 The accompanying notes are an integral part of these financial statements.17 Economic American Nonmajor Total Development Rescue Plan Act Governmental Governmental Corporation Fund Funds Funds 22,721,336$ 7,816,119$ 5,497,021$ 92,621,639$ 2,227,105 - - 4,631,657 1,101,960 - - 4,449,274 7,949 - 77,949 2,214,350 - - - 648,630 - - - 154,096 990 - - 29,080 - - - 869,564 26,059,340 7,816,119 5,574,970 105,618,290 16,212 62,041 101,917 2,839,420 - - - 431,088 - 6,893 56,187 344,364 - - - 105,891 - - - 83,060 - - 648,630 664,769 - 7,712,567 - 7,762,645 16,212 7,781,501 806,734 12,231,237 - - - 2,203,247 - - - 2,203,247 - - - 154,096 - - - 28,090 - - 144,756 447,481 - - - 812,283 - - - 967,885 - - 2,559,354 38,422,724 - - - 1,864,409 - - 1,646,618 1,646,618 - - 969,581 969,581 - - 96,557 96,557 26,043,128 34,618 - 26,077,746 - - - 42,825 - - - 134,632 - - - 5,543,146 - - - 1,021,594 - - - 909,889 - - - 446,341 - - 648,630)( 11,597,909 26,043,128 34,618 4,768,236 91,183,806 26,059,340$ 7,816,119$ 5,574,970$ 105,618,290$ 18 Total Fund Balances - Governmental Funds 91,183,806$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds balance sheet.159,972,447 Bonds payable and accrued compensated absences will not be liquidated with current financial resources and,therefore,have not been included in the fund financial statements.82,514,293)( Interest payable on long-term debt is accrued in the government-wide financial statements,whereas in the fund financial statements,interest expenditures are reported when due.486,669)( Premiums on bond issuances and deferred losses on bond refunding are recorded as other financing sources and uses when paid in the fund financial statements but are capitalized and amortized in the government-wide financial statements over the life of the bonds. Premiums 5,501,635)( Deferred loss 506,739 Receivables from grants,property taxes and fines and fees are not available soon enough to pay for the current period's expenditures and are,therefore, deferred in the fund financial statements.2,203,247 Included in the items related to debt is the recognition of the City's net pension liability,total OPEB liability,and related deferred outflows and inflows of resources. Net pension liability 8,735,828)( Deferred outflows related to pensions 3,160,127 Deferred inflows related to pensions 3,659,994)( Total OPEB liability 2,808,088)( Deferred outflows related to OPEB 643,003 Deferred inflows related to OPEB 415,819)( Net Position of Governmental Activities 153,547,043$ CITY OF SCHERTZ, TEXAS RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2022 The accompanying notes are an integral part of these financial statements.19 General Capital Projects Debt Service Fund Fund Fund REVENUES Taxes 29,892,435$ -$ 7,182,900$ Permits and fees 2,204,543 - - Service fees 2,134,517 - - Fines and fees 657,480 - - Intergovernmental 1,730,576 - - Investment earnings 90,883 196,624 143,428 Miscellaneous 613,268 450,000 75,000 Total Revenues 37,323,702 646,624 7,401,328 EXPENDITURES Current: General government 6,051,339 - - Public safety 18,243,849 - - Public environment 1,766,558 - - Parks and recreation 2,567,764 - - Cultural 1,144,684 - - Administration 3,991,262 - - Capital outlay 646,563 9,544,074 - Debt service: Principal - - 4,805,000 Interest and fiscal charges - - 1,779,157 Bond issue costs - 468,285 90,626 Total Expenditures 34,412,019 10,012,359 6,674,783 Excess (Deficiency) of Revenues Over Expenditures 2,911,683 9,365,735)( 726,545 OTHER FINANCING SOURCES (USES) Issuance of debt - 31,540,000 - Issuance of refunding debt - - 4,070,000 Premium on issuance of debt - 2,778,912 421,632 Payment to refunding escrow agent - - 4,443,881)( Transfers in 37,853 3,285,112 2,737 Transfers out 2,361,204)( 2,737)( - Total Other Financing Sources (Uses)2,323,351)( 37,601,287 50,488 NET CHANGE IN FUND BALANCE 588,332 28,235,552 777,033 FUND BALANCES - BEGINNING 16,478,567 13,170,964 1,087,376 FUND BALANCES - ENDING 17,066,899$ 41,406,516$ 1,864,409$ CITY OF SCHERTZ, TEXAS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 The accompanying notes are an integral part of these financial statements.20 Economic American Nonmajor Total Development Rescue Plan Act Governmental Governmental Corporation Fund Funds Funds 6,025,703$ -$ 804,132$ 43,905,170$ - - 136,950 2,341,493 - - 819,190 2,953,707 - - 97,078 754,558 - 2,422,438 94,509 4,247,523 201,279 34,375 43,309 709,898 - - 507 1,138,775 6,226,982 2,456,813 1,995,675 56,051,124 218,302 - 245,991 6,515,632 - 838,268 16,256 19,098,373 - - - 1,766,558 - - 92,150 2,659,914 - - 14,340 1,159,024 531,783 - 74,443 4,597,488 - 1,584,170 1,321,933 13,096,740 - - - 4,805,000 - - - 1,779,157 - - - 558,911 750,085 2,422,438 1,765,113 56,036,797 5,476,897 34,375 230,562 14,327 - - - 31,540,000 - - - 4,070,000 - - - 3,200,544 - - - 4,443,881)( - - 13,863 3,339,565 1,240,000)( - 51,840)( 3,655,781)( 1,240,000)( - 37,977)( 34,050,447 4,236,897 34,375 192,585 34,064,774 21,806,231 243 4,575,651 57,119,032 26,043,128$ 34,618$ 4,768,236$ 91,183,806$ 21 Net Changes in Fund Balances - Governmental Funds 34,064,774$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures.However,in the governmental activities statement of activities,that cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay 17,443,747 Depreciation expense 7,019,485)( The net effect of miscellaneous transactions involving capital assets (i.e.,sales, trade-ins, or donations) is to decrease net position.22,414)( Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Property taxes 44,716 Court fines 127,755 The issuance of long-term debt (e.g.bonds)provides current financial resources to governmental funds,while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds.Neither transaction,however,has any effect on net position.Also,governmental funds report the effect of premiums,discounts,and similar items when debt is first issued,whereas the amounts are deferred and amortized in the Statement of Activities. Issuance of long-term debt 38,810,544)( Payment to escrow agent 4,443,881 Repayment of principal of long-term debt 4,937,587 Amortization of loss on refunding 60,378)( Current year changes in certain long-term liabilities do not require the use of current financial resources and,therefore,are not reported as expenditures in governmental funds. Compensated Absences 22,003)( Net pension liability 1,305,763 Total OPEB liability 217,221)( Interest payable on long-term debt is accrued in the government-wide financial statements,whereas in the fund financial statements,interest expenditures are reported when due.200,414)( Change in Net Position of Governmental Activities 16,015,764$ CITY OF SCHERTZ, TEXAS RECONCILIATION OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2022 The accompanying notes are an integral part of these financial statements.22 Governmental Activities Total Water and Schertz Enterprise Internal Sewer System EMS Fund Service Fund ASSETS Current assets: Cash and cash equivalents 27,484,127$ 931,655$ 28,415,782$ -$ Investments 1,174,985 - 1,174,985 - Accounts receivable, net of allowance: Customer accounts 3,481,872 3,808,993 7,290,865 - Due from other funds - 16,139 16,139 - Accrued interest 6,324 - 6,324 - Inventory 99,102 119,316 218,418 - Prepaids - 2,311 2,311 - Total Current Assets 32,246,410 4,878,414 37,124,824 - Noncurrent assets: Restricted assets: Cash and cash equivalents 16,041,389 - 16,041,389 - Investments 1,839,607 - 1,839,607 - Investment in joint ventures 18,180,600 - 18,180,600 - Capital assets: Land 2,415,017 - 2,415,017 - Water rights 70,245 - 70,245 - Buildings and improvements 3,609,126 94,500 3,703,626 - Machinery, equipment, and vehicles 3,400,352 3,423,217 6,823,569 - Infrastructure 115,715,584 - 115,715,584 - Construction in progress 21,661,576 - 21,661,576 - Less: accumulated depreciation 39,523,557)( 1,993,838)( 41,517,395)( - Total Noncurrent Assets 143,409,939 1,523,879 144,933,818 - Total Assets 175,656,349 6,402,293 182,058,642 - DEFERRED OUTFLOWS OF RESOURCES Deferred loss on refunding 6,756 - 6,756 - Deferred OPEB related outflows 61,922 139,094 201,016 - Deferred pension related outflows 304,481 683,629 988,110 - Total Deferred Outflows of Resources 373,159 822,723 1,195,882 - CITY OF SCHERTZ, TEXAS STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2022 Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements.23 Governmental Activities Total Water and Schertz Enterprise Internal Sewer System EMS Fund Service Fund LIABILITIES Current liabilities: Accounts payable 3,224,437$ 212,049$ 3,436,486$ -$ Accrued liabilities - 142,223 142,223 - Retainage payable 266,714 - 266,714 - Customer deposits 648,307 - 648,307 - Due to other funds - - - - Accrued interest 189,147 - 189,147 - Unearned revenue 468,333 1,112 469,445 - Current portion of long-term liabilities: Compensated absences 25,045 47,926 72,971 - Total OPEB liability 7,363 16,531 23,894 - Long-term debt 1,580,000 81,921 1,661,921 - Total Current Liabilities 6,409,346 501,762 6,911,108 - Noncurrent liabilities: Compensated absences 100,178 191,703 291,881 - Total OPEB liability 263,072 590,917 853,989 - Net pension liability 841,704 1,889,819 2,731,523 - Long-term debt 27,747,980 245,764 27,993,744 - Total Noncurrent Liabilities 28,952,934 2,918,203 31,871,137 - Total Liabilities 35,362,280 3,419,965 38,782,245 - DEFERRED INFLOWS OF RESOURCES Deferred OPEB related inflows 40,054 89,952 130,006 - Deferred pension related inflows 352,644 791,766 1,144,410 - Total Deferred Inflows of Resources 392,698 881,718 1,274,416 - NET POSITION Net investment in capital assets 93,801,669 1,196,194 94,997,863 - Restricted for construction 5,408,320 - 5,408,320 - Unrestricted 41,064,541 1,727,139 42,791,680 - Total Net Position 140,274,530$ 2,923,333$ 143,197,863$ -$ CITY OF SCHERTZ, TEXAS Business-Type Activities Enterprise Funds PROPRIETARY FUNDS STATEMENT OF NET POSITION SEPTEMBER 30, 2022 24 Governmental Activities Total Internal Water and Schertz Enterprise Service Sewer System EMS Funds Fund OPERATING REVENUES Fees charged to users 30,298,038$ 9,420,909$ 39,718,947$ -$ Charges for premiums - - - 4,292,996 Other charges 19,109 - 19,109 - Miscellaneous 559,412 116,327 675,739 - Total Operating Revenues 30,876,559 9,537,236 40,413,795 4,292,996 OPERATING EXPENSES Personnel services 2,531,095 5,748,214 8,279,309 4,292,996 General and administrative 3,340,401 697,978 4,038,379 - Contractual services 17,967,935 762,178 18,730,113 - Supplies and maintenance 522,667 623,987 1,146,654 - Depreciation 2,559,869 402,143 2,962,012 - Total Operating Costs 26,921,967 8,234,500 35,156,467 4,292,996 Operating Income (Loss)3,954,592 1,302,736 5,257,328 - NON-OPERATING REVENUES (EXPENSES) Investment revenue 307,487 7,059 314,546 - Rent revenue 360,419 - 360,419 - Interest expense 912,019)( - 912,019)( - Total Non-Operating Revenues (Expenses)244,113)( 7,059 237,054)( - Income before contributions and transfers 3,710,479 1,309,795 5,020,274 - Transfers in 308,835 7,381 316,216 - Capital contributions - impact fees 1,203,925 - 1,203,925 - Capital contributions - dedicated assets 4,940,032 - 4,940,032 - CHANGE IN NET POSITION 10,163,271 1,317,176 11,480,447 - NET POSITION - BEGINNING 130,111,259 1,606,157 131,717,416 - NET POSITION - END OF YEAR 140,274,530$ 2,923,333$ 143,197,863$ -$ Business-Type Activities Enterprise Funds CITY OF SCHERTZ, TEXAS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 The accompanying notes are an integral part of these financial statements.25 Governmental Activities Water and Schertz Total Internal Sewer System EMS Enterprise Service Fund CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers and users 30,702,467$ 8,911,870$ 39,614,337$ -$ Cash received from interfund services - - - 4,292,996 Cash paid to employees for services 2,637,637)( 6,037,877)( 8,675,514)( 4,292,996)( Cash paid to suppliers for goods and services 22,047,319)( 2,142,119)( 24,189,438)( - Net Cash Provided By Operating Activities 6,017,511 731,874 6,749,385 - CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers from other funds 308,835 7,381 316,216 - Net Cash Used in Non-Capital Financing Activities 308,835 7,381 316,216 - CASH FLOWS FROM CAPITAL & RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets 7,350,994)( 808,166)( 8,159,160)( - Capital contributions - impact fees 1,203,925 - 1,203,925 - Proceeds from issuance of debt 16,860,000 - 16,860,000 - Premium from issuance of debt 1,572,881 - 1,572,881 - Interest paid on long-term debt 902,571)( 3,880)( 906,451)( - Principal paid on long-term debt 3,300,000)( 262,436)( 3,562,436)( - Net Cash Used in Capital and Related Financing Activities 8,083,241 1,074,482)( 7,008,759 - CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments 20,954)( - 20,954)( - Payments from rentals 360,419 - 360,419 - Interest and investment earnings 307,487 7,059 314,546 - Net Cash Provided By (Used in) Investing Activities 646,952 7,059 654,011 - Net (Decrease) Increase in Cash and Cash Equivalents 15,056,539 328,168)( 14,728,371 - Cash and cash equivalents at beginning of year: Cash and cash equivalents 8,197,023 1,259,823 9,456,846 - Restricted cash and cash equivalents 20,271,954 - 20,271,954 - 28,468,977 1,259,823 29,728,800 - Cash and cash equivalents at end of year Cash and cash equivalents 27,484,127 931,655 28,415,782 - Restricted cash and cash equivalents 16,041,389 - 16,041,389 - 43,525,516$ 931,655$ 44,457,171$ -$ Enterprise Funds CITY OF SCHERTZ, TEXAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 Business-Type Activities The accompanying notes are an integral part of these financial statements.26 Governmental Activities Water and Schertz Total Internal Sewer System EMS Enterprise Service Fund RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss)3,954,592$ 1,302,736$ 5,257,328$ -$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 2,559,869 402,143 2,962,012 - Change in investment in joint venture 1,438,934)( - 1,438,934)( - Decrease (increase) in accounts receivable 208,117)( 623,221)( 831,338)( - Decrease (increase) in inventory 16,219)( 17,744)( 33,963)( - Increase (decrease) in deferred pension outflows 76,750)( 176,851)( 253,601)( - Increase (decrease) in deferred OPEB outflows 646 6,814)( 6,168)( - Increase (decrease) in accounts payable 1,238,837 40,232)( 1,198,605 - Increase (decrease) in accrued liabilities 30,776 - 30,776 - Increase (decrease) in customer deposits 21,155 2,145)( 19,010 - Increase (decrease) in unearned revenue 12,870 - 12,870 - Increase (decrease) in compensated absences - - - - Increase (decrease) in net pension liability 281,432)( 609,531)( 890,963)( - Increase (decrease) in deferred OPEB inflows 7,090 16,596 23,686 - Increase (decrease) in deferred pension inflows 205,166 463,578 668,744 - Increase (decrease) in total OPEB liability 7,962 23,359 31,321 - Net cash provided by operating activities 6,017,511$ 731,874$ 6,749,385$ -$ SCHEDULE OF NON-CASH CAPITAL ACTIVITIES Developer contributions of capital assets 4,940,032$ -$ 4,940,032$ -$ Total non-cash capital activities 4,940,032$ -$ 4,940,032$ -$ Activities Enterprise Funds FOR THE YEAR ENDED SEPTEMBER 30, 2022 Business-Type CITY OF SCHERTZ, TEXAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS 27 28 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Schertz is a municipal corporation governed by an elected mayor and seven-member council. The financial statements of the City have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below: A. Reporting Entity Component Units - As required by generally accepted accounting principles, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government’s operations; thus, data from these units are be combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the government-wide financial statements to emphasize it is legally separate from the government. The City reports the following component unit: Schertz Economic Development Corporation - The Corporation was organized for the purpose of promoting economic development in order to eliminate unemployment and underemployment and to promote and encourage employment and public welfare of, for, and on behalf of the City. The board of directors consists of seven (7) members appointed by the city council. The City is financially accountable for the Corporation because the city council approves the Corporation's budget and appoints all board members. For financial reporting purposes, the SEDC is reported as a blended component unit due to the City having operational responsibility for the component unit, and that any debt issued by SEDC would be expected to be paid using City resources. Thus, SEDC is presented as a special revenue fund within the City’s financial statements. Complete financial statements for the Schertz Economic Development Corporation may be obtained from City Hall. Joint Ventures - A joint venture is a legally separate entity that results from a contractual arrangement and that is owned, operated, or governed by two or more participating governments. The following entities meet the criteria as joint ventures. Separate financial statements for these entities may be obtained at City Hall. Schertz/Seguin Local Government Corporation - is a public, nonprofit corporation organized to aid, assist, and act on behalf of the cities of Schertz and Seguin in acquiring, constructing, maintaining, and operating a water utility system. The participating governments have an ongoing financial responsibility to fund the operation of the corporation through either purchase of services or by subsidizing the operations. Cibolo Valley Local Government Corporation - is a public, nonprofit corporation organized July 28, 2011 to aid, assist, and act on behalf of the cities of Cibolo, Converse and Schertz in acquiring, constructing, maintaining, and operating a water utility system. The participating governments have an ongoing financial responsibility to fund the operation of the corporation through either purchase of services or by subsidizing the operations. B. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. 29 The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges of customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Nonexchange revenues that are measurable but not available are recorded as unavailable revenue (a deferred inflow of resources). These revenues are generally property taxes and warrants outstanding. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Exchange revenues (payments for services) received in advance of the service being provided are recorded as unearned revenue. The City reports the following major governmental funds: The General Fund is the City's primary operating fund which accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Capital Projects Fund accounts for the acquisition and construction of major capital facilities financed from bond proceeds, grants, and transfers from other funds. The Debt Service Fund accounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt of governmental funds. The Economic Development Corporation collects sales taxes to support business development and expansion within the City. The American Rescue Plan Act Fund records revenue and expenditures related to the City’s COVID- 19 funding from the American Rescue Plan Act. The City reports the following major enterprise funds: The Water and Sewer System Fund accounts for the water and sewer services provided to the citizens through user charges. The EMS Fund accounts for the emergency medical services provided to the citizens of the City and other participating governments through user charges. Additionally, the City reports the following fund types: The Internal Service Fund accounts for the City’s group medical insurance program. 30 As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this are charges between the City's general government function and various other functions of the City. Eliminations of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applications for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. General revenues include all taxes and investment earnings. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the water and sewer enterprise fund and the EMS enterprise fund are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. D. Cash and Cash Equivalents The City's cash and cash equivalents are considered to be cash on hand and demand deposits. Cash is reported as restricted when it has restrictions on its use narrower than the purpose of the fund in which it is reported. This can result in differences in presentation between fund statements and government-wide statements. For purposes of the statement of cash flows, the City considers cash and other investments with maturities of three months or less from the date of purchase to be cash and cash equivalents. E. Investments The City is authorized to invest in (1) obligations of the United States or its agencies and instrumentalities; (2) direct obligations of the State of Texas or its agencies; (3) other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas of the United States; (4) obligations of states, agencies, counties, cities, and other political subdivisions of any state having been rated of not less than "AA" or its equivalent; (5) certificates of deposit issued by state and national banks domiciled in Texas that are guaranteed or insured by the Federal Deposit Insurance Corporation (FDIC) or its successor, or secured by obligations mentioned above; and (6) fully collateralized direct repurchase agreements having a defined termination date. In addition, the City is authorized to invest in local government investment pools. The investment pools operate in accordance with appropriate state laws and regulations and have regulatory oversight from the Texas Public Funds Investment Act Sec. 2256.0016. Investments for the City are reported at fair value, except for the position in investment pools, which are reported at net asset value per share (which approximates fair value) even though it is calculated using the amortized cost method. The City categorized its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quotes prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. F. Receivables and Payables Activities between the funds that are representative of inter-fund loans outstanding at the end of the fiscal year are referred to as due to/from other funds. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances". Accounts receivable are reported net of allowances for uncollectible accounts. The allowance account represents management's estimate of uncollectible accounts based upon experience and historical trends. 31 Property taxes for the City are levied each October 1 on the taxable value as of the preceding January 1, the date a lien attaches, for all taxable real and personal property located in the City. Taxes are due by January 31 following the October 1 assessment date and become delinquent on February 1, at which time they begin accruing penalty and interest. The enforceable legal claim date for property taxes is the assessment date; therefore, the City did not record a receivable for accrual of future taxes at year end. Accordingly, no current taxes receivable are reported. Delinquent taxes have been reported in the financial statements net of the allowance for uncollectible taxes. Tax revenues are recognized as they become available. Accordingly, an amount equal to taxes not yet available has been reported as unavailable revenue (a deferred inflow of resources) at the government fund level. G. Inventories and Prepaid Items All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both governmental-wide and fund financial statements and in the fund financial statements are offset by a nonspendable fund balance which indicates they do not represent “available spendable resources”. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. H. Restricted Assets Certain proceeds from bonds, resources set aside for their repayment, and other restrictive agreements are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants and/or contractual arrangements. I. Capital Assets Capital assets, which include land, buildings and improvements, machinery, equipment, vehicles, and infrastructure assets (i.e., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. When capital assets are purchased, they are capitalized and depreciated in the government-wide financial statements and the proprietary fund statements. Capital assets are recorded as expenditures of the current period in the governmental fund financial statements. Capital assets are valued at cost where historical records are available and at an estimated cost where no records exist. Donated capital assets, donated works of art and similar items received as part of a service concession arrangement are reported at acquisition value, rather than fair value. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements to capital assets that materially extend the life of the asset or add to the value are capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Capital assets are depreciated over their useful lives on a straight-line basis as follows: Use Lives Assets (Years) Buildings and improvements 10 - 50 Machinery, equipment, and vehicles 2 - 20 Infrastructure 15 - 30 32 J. Deferred Inflows/Outflows of Resources In addition to assets, the statement of financial position and/or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has the following items that qualify for reporting in this category. • Deferred charges on refunding – A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. • Pension and OPEB contributions after measurement date – These contributions are deferred and recognized in the following fiscal year. • Difference in expected and actual pension and OPEB experience - This difference is deferred and recognized over the estimated average remaining lives of all members determined as of the measurement date. • Changes in actuarial assumptions and other inputs – This difference is deferred and recognized over the estimated average remaining lives of all members determined as of the measurement date. In addition to liabilities, the statement of financial position and/or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has the following types of items that qualify for reporting in this category. • Unavailable revenue is reported only in the governmental funds balance sheet. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. • Difference in projected and actual earnings on pension assets – This difference is deferred and amortized over a closed five-year period. • Difference in expected and actual pension and OPEB experience - This difference is deferred and recognized over the estimated average remaining lives of all members determined as of the measurement date. • Changes in actuarial assumptions and other inputs – This difference is deferred and recognized over the estimated average remaining lives of all members determined as of the measurement date. K. Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and compensatory time benefits. There is no liability for unpaid accumulated sick leave since the City does not have a policy to pay any amounts when employees separate from service with the City. All vacation and compensatory time pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. The general fund, water and sewer fund and the EMS fund are used to liquidate compensated absences. L. Pensions The net pension liability, deferred inflows, and outflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Texas Municipal Retirement System (TMRS), and additions to and deductions from TMRS’s fiduciary net position have been determined on the same basis as they are reported by TMRS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 33 M. Other Post-Employment Benefits (OPEB) Supplemental Death Benefits Fund. For purposes of measuring the total Texas Municipal Retirement System Supplemental Death Benefit Fund (TMRS SDBF) OPEB liability, related deferred outflows and inflows of resources, and expense, City specific information about its total TMRS SDBF liability and additions to/deductions from the City’s total TMRS SDBF liability have been determined on the same basis as they are reported by TMRS. The TMRS SDBF expense and deferred (inflows)/outflows of resources related to TMRS SDBF, primarily result from changes in the components of the total TMRS SDBF liability. Most changes in the total TMRS SDBF liability will be included in TMRS SDBF expense in the period of the change. For example, changes in the total TMRS SDBF liability resulting from current-period service cost, interest on the TOL, and changes of benefit terms are required to be included in TMRS SDBF expense immediately. Changes in the total TMRS SDBF liability that have not been included in TMRS SDBF expense are required to be reported as deferred outflows of resources or deferred inflows of resources related to TMRS SDBF. Retiree Health Insurance. For purposes of measuring the total OPEB liability, OPEB related deferred outflows and inflows of resources, and OPEB expense, benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Contributions are not required but are measured as payments by the City for benefits due and payable that are not reimbursed by plan assets. Information regarding the City’s total OPEB liability is obtained from a report prepared by a consulting actuary, Gabriel Roeder Smith & Company. N. Long-Term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums, discounts, and losses on defeasance are amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Losses on defeasance are reported as deferred outflows of resources. Bond issuance costs are expensed as incurred. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. O. Fund Balance Fund balances in governmental funds are classified as follows: Nonspendable - Represents amounts that cannot be spent because they are either not in spendable form (such as inventory or prepaid items) or legally required to remain intact. Restricted - Represents amounts that are constrained by external parties, constitutional provisions or enabling legislation. Committed - Represents amounts that can only be used for a specific purpose because of a formal action by the government’s highest level of decision-making authority: an ordinance adopted by City Council prior to the end of the fiscal year. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation. Assigned - Represents amounts which the City intends to use for a specific purpose but do not meet the criteria of restricted or committed. The City Council may make assignments through formal documentation in the minutes. The City Council authorized (by way of policy) the City Manager to also make assignments. The City Manager’s assignments do not require formal action; however, the City Manager has not assigned any funds at this time. Unassigned - Represents the residual balance that may be spent on any other purpose of the City. Only the General Fund reports positive unassigned fund balances; if another fund were to have unassigned fund balance, it would be in the event of a deficit. 34 When an expenditure is incurred for a purpose in which multiple classifications are available, the City considers restricted balances spent first, committed second, and assigned third. P. Net Position Net position represents the difference between assets plus deferred outflows of resources less liabilities and deferred inflows of resources. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvements of those assets, and adding back unspent proceeds. Net position is reported as restricted when there are limitations imposed by creditors, grantors, or laws or regulations of other governments. Q. Estimates The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual amounts could differ from those estimates. R. Deficit Equity At September 30, 2022, the City has a deficit unassigned fund balance of $648,630 in the Grant Fund. This deficit is due to timing differences between expenditures and reimbursements of grant funds. S. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds except the American rescue plan act fund, library advisory board fund, grant special revenue fund, police department forfeiture special revenue fund and the capital projects fund, which adopts project-length budgets. II. DETAILED NOTES ON ALL FUNDS AND ACTIVITIES A. Cash, Cash Equivalents and Investments As of September 30, 2022, the City had the following cash, cash equivalents and investments: Reported Weighted Average Value Maturity (days) Investment type: LOGIC 58,465,243$ 55 Lone Star Investment Pool 26,675,705 46 Texas CLASS 44,849,126 53 Certificates of Deposit 3,372,040 139 U.S. Agency Securities 3,235,363 535 Subtotal 136,597,477 Plus: depository and petty cash 9,027,493 Total cash and investments 145,624,970$ LOGIC, Lone Star Investment Pool and Texas CLASS are recorded as cash equivalents in the financial statements. All of the pools have redemption notice periods of one day and may redeem daily. The investment pools’ authorities may only impose restrictions o n redemptions in the event of a general suspension of trading on major securities markets, general banking moratorium or national state of emergency that affects the pools’ liquidity. Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy limits the City's investment portfolio to highly liquid investments to meet unanticipated cash requirements, and/or to redeploy cash into other investments expected to outperform current holdings. 35 Credit Risk. State law limits investments in certificates of deposit to guaranteed or insured by the Federal Deposit Insurance Corporation, or its successor or the National Credit Union Share Insurance Fund, or its successor and investment pools continuously rated no lower than AAA or an equivalent rating by at least one nationally recognized rating service. The City's investment policy does not further limit its investment choices. As of September 30, 2022, the City's investments in the pooled investment funds were rated AAAm by Standard & Poor's. The City has also invested in debt securities provided by the Federal Home Loan Bank, Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Farm Credit Banks, and U.S Treasury Notes. As of September 30, 2022, the City’s investments in debt securities were rated BBB+ by Standard & Poor’s. Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of a bank failure, the government’s deposits may not be returned. As of September 30, 2022, the City’s cash and cash equivalents (including certificates of deposit, and component unit holdings) were fully collateralized by the City’s depository by a combination of pledged collateral and FDIC insurance. All collateral is held in the City’s name. Custodial Credit Risk - Investments. For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. All of the government securities owned by the City are held by its agent in the City’s name. Restricted Cash - Cash is restricted in the Proprietary fund for construction projects, impact fees and customer deposits. B. Property Taxes Taxes are levied on and payable as of October 1. The City has contracted with the Guadalupe County Tax Assessor-Collector to collect taxes on its behalf. Current taxes become delinquent February 1. Current year delinquent taxes not paid by July 1 are turned over to attorneys for collection action. The City is permitted by the Constitution of the State of Texas to levy taxes up to $2.50 per $100 of taxable assessed valuation for all governmental purposes. Pursuant to a decision of the Attorney General of the State of Texas, up to $1.50 per $100 of assessed valuation may be used for the payment of long-term debt. The combined tax rate to finance general governmental services, including the payment of principal and interest on long-term debt for the year ended September 30, 2022, was $0.5121 per $100 of assessed value. However, the City may not adopt a tax rate that exceeds the tax rate calculated in accordance with the Texas Property Tax Code without holding a public hearing. The Property Tax Code subjects an increase in the effective tax rate to a referendum election, if petitioned by registered voters, when the effective tax rate increase is more than 3.5% of the previous year’s effective tax rate. Property taxes are recorded as receivables and unearned revenues at the time the taxes are assessed. In governmental funds, revenues are recognized as the related ad valorem taxes are collected. Additional amounts estimated to be collectible in the time to be a resource for payment of obligations incurred during the fiscal year and therefore susceptible to accrual in accordance with generally accepted accounting principles have been recognized as revenue. In the government-wide financial statements, the entire levy is recognized as revenue, net of estimated uncollectible amounts (if any), at the levy date. 36 C. Receivables Receivables as September 30, 2022 for the government’s individual major funds and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: General Economic Debt Nonmajor Water and Schertz Fund Development Service Funds Sewer Fund EMS Receivables: Property taxes 385,410$ -$ 183,341$ -$ -$ -$ Sales tax 2,518,079 1,259,040 - - - - Occupancy taxes - - - 77,949 - - Franchise taxes 587,337 - - - - - Customers - - - - 3,555,135 9,379,959 Court fines 4,099,809 - - - - - Other 488,356 7,949 - - - - Gross receivables 8,078,991 1,266,989 183,341 77,949 3,555,135 9,379,959 Less: allowance for uncollectible accounts 2,461,407)( - 11,000)( - 73,263)( 5,570,966)( Net receivables 5,617,584$ 1,266,989$ 172,341$ 77,949$ 3,481,872$ 3,808,993$ Governmental Activities Business-type Activities D. Deferred Inflows and Outflows of Resources Governmental funds report unavailable revenue in connection with receivables for revenue that is not considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the various components of unavailable revenue and unavailable revenue reported in the governmental funds were as follows: Unavailable General Fund Delinquent property taxes receivable 362,285$ Court fines 1,668,622 Total General Fund 2,030,907 Debt Service Fund Delinquent property taxes receivable 172,340 Total Debt Service Fund 172,340 Total Governmental Funds 2,203,247$ Additionally, the proprietary funds and governmental activities statements of net position report various deferred outflows and inflows of resources, primarily due to pensions and OPEB, that are summarized by column. The following table presents the disaggregated amounts. Governmental Water/ Activities Sewer EMS Totals Deferred outflows: Charge on refunding 506,739$ 6,756$ -$ 513,495$ Related to pensions 3,160,127 304,481 683,629 4,148,237 Related to OPEB - SDBF 223,514 21,504 48,346 293,364 Related to OPEB - Retiree Health Plan 419,489 40,418 90,748 550,655 Total deferred outflow 4,309,869$ 373,159$ 822,723$ 5,505,751$ Deferred inflows: Service concession arrangement 298,422$ -$ -$ 298,422 Related to pensions 3,659,994 352,643 791,766 4,804,403 Related to OPEB - SDBF 67,267 6,472 14,550 88,289 Related to OPEB - Retiree Health plan 348,552 33,583 75,402 457,537 Total deferred inflow 4,374,235$ 392,698$ 881,718$ 5,648,651$ Business-type Activities 37 E. Interfund Balances and Transfers The composition of interfund balances as of September 30, 2022 is as follows: Due From Due To Amount Purpose EMS General 16,139$ Short-term pool cash loan General Nonmajor Governmental 648,630 Short-term pool cash loan The following schedule briefly summarizes the City’s transfer activity for the year ending September 30, 2022: Transfer From Transfer To Amount Purpose General Nonmajor governmental 13,863$ Suplement funds sources General Capital Projects 2,045,112 Funding for various capital projects General Water and Sewer System 302,229 Suplement funds sources Nonmajor governmental General 37,853 Close out completed grant into local funds Nonmajor governmental Water and Sewer System 6,606 Close out completed grant into local funds Nonmajor governmental EMS 7,381 Close out completed grant into local funds EDC Capital Projects 1,240,000 Funding for various capital projects Capital Projects Debt Service 2,737 Suplement funds sources F. Capital Assets Capital asset activity for the year ended September 30, 2022 was as follows: Beginning Reclassifications/Ending Balance Additions Retirements Balance Governmental activities: Capital assets not being depreciated: Land 8,310,986$ 572,441$ -$ 8,883,427$ Construction in progress 26,695,151 9,056,294 8,067,015)( 27,684,430 Total capital assets not being depreciated 35,006,137 9,628,735 8,067,015)( 36,567,857 Capital assets being depreciated: Buildings and improvements 44,588,777 45,787 8,067,015 52,701,579 Machinery, equipment, and vehicles 14,833,547 817,998 178,864)( 15,472,681 Street and infrastructure 129,206,285 6,987,788 - 136,194,073 Total assets being depreciated 188,628,609 7,851,573 7,888,151 204,368,333 Less accumulated depreciation for: Buildings and improvements 18,448,517)( 1,612,535)( - 20,061,052)( Machinery, equipment, and vehicles 8,165,845)( 1,241,549)( 119,889 9,287,505)( Street and infrastructure 47,449,785)( 4,165,401)( - 51,615,186)( Total accumulated depreciation 74,064,147)( 7,019,485)( 119,889 80,963,743)( Total capital assets being depreciated, net 114,564,462 832,088 8,008,040 123,404,590 Governmental activities capital assets, net 149,570,599$ 10,460,823$ 58,975)$( 159,972,447$ 38 Beginning Reclassifications/Ending Balance Additions Retirements Balance Business-type activities: Capital assets, not being depreciated: Land 1,844,488$ 570,529$ -$ 2,415,017$ Water rights 70,245 - - 70,245 Construction in progress 19,942,794 6,662,221 4,943,439)( 21,661,576 Total capital assets, not being depreciated 21,857,527 7,232,750 4,943,439)( 24,146,838 Capital assets being depreciated: Buildings and improvements 3,609,126 94,500 - 3,703,626 Machinery, equipment, and vehicles 6,214,966 823,427 214,824)( 6,823,569 Infrastructure 105,832,113 9,883,471 - 115,715,584 Total assets being depreciated 115,656,205 10,801,398 214,824)( 126,242,779 Less accumulated depreciation for: Buildings and improvements 1,121,106)( 158,786)( - 1,279,892)( Machinery, equipment, and vehicles 5,543,597)( 661,756)( 214,824 5,990,529)( Infrastructure 32,105,504)( 2,141,470)( - 34,246,974)( Total accumulated depreciation 38,770,207)( 2,962,012)( 214,824 41,517,395)( Total capital assets being depreciated, net 76,885,998 7,839,386 - 84,725,384 Business-type activities capital assets, net 98,743,525$ 15,072,136$ 4,943,439)$( 108,872,222$ Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government 734,093$ Public safety 1,131,288 Public environment 4,175,495 Parks and recreation 926,952 Cultural 44,286 Administration 7,371 Total 7,019,485$ Business-type activities: Water and sewer system 2,559,869$ EMS 402,143 Total 2,962,012$ Total Depreciation 9,981,497$ G. Long-Term Debt The City issues a variety of long-term debt instruments in order to acquire and/or construct major capital facilities and equipment for governmental activities. These instruments include general obligation bonds, certificates of obligation, and tax notes. These debt obligations are secured by primarily future property tax revenues. In some cases, these bonds are also secured by a pledge of net revenues from the utility system, emergency medical services and economic development sales taxes. However, the amount of the formal pledge is generally limited to $1,000. Proprietary operating revenues for the year exceeded $50.4 million and sales tax revenue was $18.5 million. Additionally, certain obligations that were marketed as private placements have been separately identified; however, the terms of these obligations are not significantly different than other obligations and do not have substantive acceleration clauses. Should the City default on these bonds, any registered owner of the obligations is entitled to seek a writ of mandamus from a court of proper jurisdiction requiring the City to make payment. 39 Changes in long-term debt for the year ending September 30, 2022 are as follows: Beginning Refunded/Ending Amount Due Balance Issued Retired Balance Within One Year Governmental activities: General Obligation Bonds 33,770,000$ 22,605,000$ 7,000,000)$( 49,375,000$ 3,330,000$ Certificates of Obligation 14,200,000 13,005,000 1,070,000)( 26,135,000 1,570,000 General Obligation Bonds- Private Placement 6,620,000 - 925,000)( 5,695,000 950,000 Tax Notes- Private Placement 155,000 - 155,000)( - - Premium from Debt 2,502,146 3,200,544 201,055)( 5,501,635 - Financing Arrangement 136,535 - 27,307)( 109,228 27,307 Compensated Absences 1,178,062 493,228 471,225)( 1,200,065 240,013 Total governmental 58,561,743$ 39,303,772$ 9,849,587)$( 88,015,928$ 6,117,320$ Business-type activities: General Obligation Bonds 2,055,000$ 1,945,000$ 370,000)$( 3,630,000$ 535,000$ Certificates of Obligation 10,655,000 14,915,000 2,725,000)( 22,845,000 840,000 General Obligation Bonds- Private Placement 840,000 - 205,000)( 635,000 205,000 Unamortized Premium 772,802 1,572,881 127,703)( 2,217,980 - Financing Arrangement 475,121 - 147,436)( 327,685 81,921 Compensated Absences 364,852 145,941 145,941)( 364,852 72,971 Total business-type 15,162,775$ 18,578,822$ 3,721,080)$( 30,020,517$ 1,734,892$ New Bonds Issued In January 2022, the City issued Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2022 in the amount of $9,390,000. These certificates have interest rates ranging from 2.125% and 3.00% and will mature in February 2032. These certificates will be used to fund multiple public improvement projects and are secured by the City’s ad valorem tax revenue and utility system revenue. In August 2022, the City issued Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2022A in the amount of $18,530,000. These certificates have interest rates ranging from 1.50% and 5.00% and will mature in February 2042. These certificates will be used to fund multiple public improvement projects and are secured by the City’s ad valorem tax revenue and utility system revenue. In August 2022, the City issued General Obligation Bonds, Series 2022 in the amount of $18,535,000. These certificates have interest rates ranging from 4.00% and 5.00% and will mature in February 2042. These certificates will be used to fund multiple public improvement projects and are secured by the City’s ad valorem tax revenue and utility system revenue. Refunding Bonds Issued (Current Refunding) In October 2021, the City issued General Obligation Refunding Bonds, Series 2021 in the amount of $6,015,000. These bonds have interest rates ranging from 2.00% and 3.00% and will mature in February 2028. These bonds will be used to refund the General Obligation Bonds, Series 2012 and the Tax and Limited Pledge Revenue Certificates of Obligation, Series 2013 to provide a present value savings. The net proceeds of $6,567,554 (net of costs of issuance, a premium of $623,125, and a cash contribution of $65,192) were placed in an irrevocable escrow account to call the old bonds on the call date of February 1, 2022. The refunding transaction reduced the City’s total debt service payments by $710,634 and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of $668,440. The reacquisition price exceeded the book value of the old debt by $6,779, which was expensed in the current year. Prior Year Refunding of Debt The City defeased certain outstanding bonds by placing proceeds of new bonds in irrevocable trusts to provide for all future debt service payments. Accordingly, the respective trust accounts and liability for the defeased bonds are not included in the City’s financial statements. As of September 30, 2022, the City does not have bonds considered defeased and outstanding. 40 A summary of the terms of long-term debt outstanding at September 30, 2022, is as follows: Issue Amount Maturity Rate Balance Governmental Activities General Obligation Bonds 2014 Series, Refunding 8,450,000 2030 2.0% - 4.0%7,050,000 2015 Series, Refunding 4,185,000 2031 2.0% - 3.25%1,140,000 2016 Series 5,880,000 2036 2.0% - 4.0%4,350,000 2017 Series 3,935,000 2037 2.0% - 4.0%3,170,000 2018 Series, Refunding 5,830,000 2033 3.125% - 5%4,440,000 2020 Series, Refunding 7,555,000 2036 1.5% - 4%6,620,000 2021 Series, Refunding 4,070,000 2033 2% - 4%4,070,000 2022 Series 18,535,000 2042 4% - 5%18,535,000 Private Placement obligations 2007 Series GO 6,000,000 2027 4.07%1,925,000 2018 Series GO Refunding 6,035,000 2028 2.12%3,770,000 Certificates of Obligation 2016 Series A 2,375,000 2036 2.0% - 4.0%1,300,000 2016 Series B 1,475,000 2036 3.0% - 3.75%1,130,000 2017 Series 4,935,000 2037 3.0% - 3.75%3,520,000 2018 Series 4,845,000 2038 3.0% - 5.0%3,935,000 2019 Series 4,015,000 2039 2.5% - 5%3,245,000 2022 Series 4,740,000 2042 2% - 5%4,740,000 2022 Series A 8,265,000 2042 4% - 5%8,265,000 Total Governmental Long-Term Obligations 81,205,000$ Issue Amount Maturity Rate Balance Business-type Activities General Obligation Bonds 2018 Series, Refunding 2,740,000 2026 3.125% - 5%1,685,000$ 2021 Series, Refunding 1,945,000 2033 2% - 3%1,945,000 Certificates of Obligation 2018 Series 5,595,000 2028 3.0% - 5.0%4,835,000 2019 Series 3,480,000 2039 2.5% - 5%3,095,000 2022 Series 4,650,000 2042 2% - 5%4,650,000 2022 Series A 10,265,000 2042 1.5% - 5%10,265,000 Private Placement obligations 2013 Series GO Refunding 2,130,000 2025 2.58%635,000 Total Business-Type Long-Term Obligations 27,110,000$ 41 Annual future debt service requirements of bonded debt as of September 30, 2022, are as follows: Governmental activities: Year Ended September 30,Principal Interest Total Principal Interest Total 2023 3,330,000$ 1,786,738$ 5,116,738$ 1,570,000$ 963,069$ 2,533,069$ 2024 3,415,000 1,651,112 5,066,112 1,455,000 899,619 2,354,619 2025 2,845,000 1,523,238 4,368,238 1,375,000 838,219 2,213,219 2026 2,970,000 1,404,163 4,374,163 1,310,000 780,719 2,090,719 2027 3,090,000 1,280,663 4,370,663 1,195,000 727,356 1,922,356 2028-2032 17,490,000 4,442,890 21,932,890 6,735,000 2,839,534 9,574,534 2033-2037 9,985,000 2,044,744 12,029,744 7,910,000 1,467,100 9,377,100 2038-2042 6,250,000 645,000 6,895,000 4,585,000 370,988 4,955,988 Total 49,375,000$ 14,778,547$ 64,153,547$ 26,135,000$ 8,886,603$ 35,021,603$ Year Ended September 30,Principal Interest Total 2023 950,000$ 144,740$ 1,094,740$ 2024 980,000 117,214 1,097,214 2025 1,010,000 88,758 1,098,758 2026 1,035,000 59,428 1,094,428 2027 1,060,000 29,274 1,089,274 2028 660,000 6,996 666,996 Total 5,695,000$ 446,410$ 6,141,410$ Certificates of Obligation Private Placement Debt General Obligation Bonds General Obligation Bonds Business-type activities: Year Ended September 30,Principal Interest Total Principal Interest Total 2023 535,000$ 132,050$ 667,050$ 840,000$ 893,738$ 1,733,738$ 2024 560,000 106,150 666,150 855,000 852,713 1,707,713 2025 595,000 78,825 673,825 890,000 809,813 1,699,813 2026 615,000 50,200 665,200 945,000 765,438 1,710,438 2027 175,000 32,150 207,150 985,000 718,763 1,703,763 2028-2032 980,000 76,125 1,056,125 5,665,000 2,850,288 8,515,288 2033-2037 170,000 1,700 171,700 6,910,000 1,609,481 8,519,481 2038-2042 - - - 5,755,000 461,931 6,216,931 Total 3,630,000$ 477,200$ 4,107,200$ 22,845,000$ 8,962,163$ 31,807,163$ Year Ended September 30,Principal Interest Total 2023 205,000$ 13,739$ 218,739$ 2024 215,000 8,321 223,321 2025 215,000 2,774 217,774 Total 635,000$ 24,833$ 659,833$ Certificates of Obligation General Obligation Bonds Private Placement Debt General Obligation Bonds 42 Financing Arrangements The City enters into various agreements to finance machinery and equipment; they are classified as financing arrangements due to the title of the financed assets transferring to the City. Therefore, capital assets and a related financing arrangement obligation have been recorded at the present value of the future minimum payments at the inception date. This private placement debt is secured by the purchased equipment. Future minimum payments on the financing arrangements are as follows: Year Ended September 30,Principal Interest Total Principal Interest Total 2023 27,307$ 819$ 28,126$ 81,921$ 2,458$ 84,379$ 2024 27,307 819 28,126 81,921 2,458 84,379 2025 27,307 819 28,126 81,921 2,458 84,379 2026 27,307 819 28,126 81,922 2,458 84,380 Total 109,228$ 3,276$ 112,504$ 327,685$ 9,832$ 337,517$ Governmental Activities Business-type Activities H. Net Pension and Total OPEB Liabilities and Expenses Amounts are aggregated into a single net pension liability and total OPEB liability, and expenses for certain columns. Below is the detail of net pension liability and total OPEB liability and expenses for governmental and business-type activities. Governmental Water/ Activities Sewer EMS Totals Net pension liability 8,735,828$ 841,704$ 1,889,819$ 11,467,351$ Total OPEB liability: Due within one year: TMRS SDBF 8,943$ 862$ 1,935$ 11,740$ Retiree health plan 67,472 6,501 14,596 88,569 Total due within one year 76,415 7,363 16,531 100,309 Due in more than one year: TMRS SDBF 870,037 83,702 188,189 1,141,928 Retiree health plan 1,861,636 179,370 402,728 2,443,734 Total due in more than one year 2,731,673 263,072 590,917 3,585,662 Total OPEB liability 2,808,088$ 270,435$ 607,448$ 3,685,971$ Governmental Water/ Activities Sewer EMS Totals Pension expense 1,305,762)$( 153,016)$( 322,806)$( 1,781,584)$( OPEB expense: TMRS SDBF 99,151 7,840 19,043 126,034 Retiree Health Plan 118,071 7,860 14,099 140,030 Total OPEB expense 217,222$ 15,700$ 33,142$ 266,064$ Business-type Activities Business-type Activities 43 III. OTHER INFORMATION A. Retirement Plan Plan Description. The City of Schertz participates as one of 901 plans in the nontraditional, joint contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the state of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple-employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the system with a six-member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS’s defined benefit pension plan is a tax-qualified plan under Section 401(a) of the Internal Service Code. TMRS issues a publicly available annual comprehensive financial report (ACFR) that can be obtained at www.tmrs.com. All eligible employees of the City are required to participate in TMRS. Benefits Provided. TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. At retirement, the benefit is calculated as if the sum of the employee’s contributions, with interest, and the City-financed monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirement benefit in one of seven payment options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the member’s deposits and interest. The City grants monetary credits for service rendered of a theoretical amount equal to two times what would have been contributed by the employee, with interest. Monetary credits, also known as the matching ratio, are 200% of the employee’s accumulated contributions and are only payable in the form of an annuity. Beginning in 2008, the City granted an annually repeating (automatic) basis monetary credit referred to as an updated service credit (USC) which is a theoretical amount that takes into account salary increases or plan improvements. If at any time during their career an employee earns a USC, this amount remains in their account earning interest at 5% until retirement. At retirement, the benefit is calculated as if the sum of the employee’s accumulated contributions with interest and the employer match plus employer-financed monetary credits, such as USC, with interest were used to purchase an annuity. Additionally, initiated in 2008, the City provided on an annually repeating (automatic) basis cost of living adjustments (COLA) for retirees equal to a percentage of the change in the consumer price index (CPI). At the December 31, 2021 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 138 Inactive employees entitled to but not yet receiving benefits 267 Active employees 356 Total 761 Contributions. The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the City matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the City. Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year. The contribution rates for the City were 16.45% and 16.36% in calendar years 2022 and 2021, respectively. The City’s contributions to TMRS for the year ended September 30, 2022 were $4,245,872 and were equal to the required contributions. Net Pension Liability. The City’s Net Pension Liability (NPL) was measured as of December 31, 2021, and the Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. The net pension liability is typically liquidated through the General Fund and Enterprise Funds. 44 Actuarial Assumptions The Total Pension Liability in the December 31, 2021 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% per year Overall payroll growth 2.75% per year Investment rate of return 6.75% net of pension plan investment expense, including inflation Salary increases are based on a service-related table. Mortality rates for active members are based on the PUB(10) mortality tables with the Public Safety table used for males and the General Employee table used for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender-distinct 2019 Municipal Retirees of Texas mortality tables. The rates for actives, healthy retirees and beneficiaries are projected on a fully generational basis by Scale UMP to account for future mortality improvements. For disabled annuitants, the same mortality tables for healthy retirees is used with a 4-year set-forward for males and a 3-year set-forward for females. In addition, a 3.5% and 3.0% minimum mortality rate will be applied to reflect the impairment for younger members who become disabled for males and females. The rates are projected on a fully generational basis by Scale UMP to account for future mortality improvements subject to the floor. The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over the four-year period from December 31, 2014 to December 31, 2018. They were adopted in 2019 and first used in the December 31, 2019 actuarial valuation. The post-retirement mortality assumption for healthy annuitants and Annuity Purchase Rate (APRs) are based on the Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. In conjunction with these changes first used in the December 31, 2013 valuation, the System adopted the Entry Age Normal actuarial cost method and a one-time change to the amortization policy. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. In determining their best estimate of a recommended investment return assumption under the various alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). Asset Class Target Allocation Long-Term Expected Real Rate of Return (Arithmetic) Core Fixed Income 10.00%5.30% Non-Core Fixed Income 20.00%1.25% Global Public Equity 30.00%4.14% Real Estate 10.00%3.85% Real Return 10.00%4.00% Absolute Return 10.00%3.48% Private Equity 10.00%7.75% Total 100.0% 45 Discount Rate The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rates specified in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. The below schedule presents the changes in the Net Pension Liability as of December 31, 2021: Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a)(b)(a)-(b) Balance at 12/31/2020 84,773,362$ 69,798,222$ 14,975,140$ Changes for the year: Service cost 4,211,795 - 4,211,795 Interest 5,766,957 - 5,766,957 Difference between expected and actual experience 1,060,260 - 1,060,260 Change in assumptions - - - Contributions - employer - 3,831,461 3,831,461)( Contributions - employee - 1,643,398 1,643,398)( Net investment income - 9,113,755 9,113,755)( Benefit payments, including refunds 2,885,733)( 2,885,733)( - of employee contributions Administrative expense - 42,101)( 42,101 Other changes - 288 288)( Net changes 8,153,279 11,661,068 3,507,789)( Balance at 12/31/2021 92,926,641$ 81,459,290$ 11,467,351$ Increase (Decease) The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower (5.75%) or 1-percentage point higher (7.75%) than the current rate: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate (5.75%)(6.75%)(7.75%) Net pension liability 27,021,857$ 11,467,351$ 1,052,499)$( Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions. For the year ended September 30, 2022, the City recognized pension expense of $2,464,440. Also, as of September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience 921,703$ 139,864$ Changes in actuarial assumptions 111,275 - Difference between projected and actual investment earnings - 4,664,539 Contributions subsequent to the measurement date 3,115,259 - Total 4,148,237$ 4,804,403$ 46 $3,115,259 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability for the year ending September 30, 2023. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: For the Year Ended September 30, 2023 620,349)$( 2024 1,686,611)( 2025 801,407)( 2026 673,554)( 2027 10,496 B. Other Post-Employment Benefits The City participates in two defined-benefit other post-employment benefit (OPEB) plans: the Texas Municipal Retirement System Supplemental Death Benefits Fund (TMRS SDBF), and its own single-employer retiree health plan. Both are described in detail below. The total OPEB liabilities of both plans are typically liquidated through the General Fund and Enterprise Funds. TMRS Supplemental Death Benefits Fund Plan Description. The City voluntarily participates in a single-employer other postemployment benefit (OPEB) plan administered by TMRS. The Plan is a group-term life insurance plan known as the Supplemental Death Benefits Fund (SDBF). The Plan is established and administered in accordance with the TMRS Act identically to the City’s pension plan. SDBF includes coverage for both active and retired members, and assets are commingled for the payment of such benefits. Therefore, the Plan does not qualify as an OPEB Trust in accordance with paragraph 4 of GASB Statement No. 75. Benefits Provided. The SDBF provides group-term life insurance to City employees who are active members in TMRS, including or not including retirees. The City Council opted into this program via an ordinance, and may terminate coverage under, and discontinue participation in, the SDBF by adopting an ordinance before November 1 of any year to be effective the following January 1. Payments from this fund are similar to group-term life insurance benefits, and are paid to the designated beneficiaries upon the receipt of an approved application for payment. The death benefit for active employees provides a lump-sum payment approximately equal to the employee’s annual salary (calculated based on the employee’s actual earnings for the 12-month period preceding the month of death). The death benefit for retirees is considered an other employment benefit and is a fixed amount of $7,500. Membership in the plan at December 31, 2021, the valuation and measurement date, consisted of: Inactive employees or beneficiaries currently receiving benefits 107 Inactive employees entitled to but not yet receiving benefits 74 Active employees 356 Total 537 Contributions. The City contributes to the SDBF at a contractually required rate as determined by an annual actuarial valuation, which was 0.14% for 2022 and 0.13% for 2021, of which 0.06% and 0.05%, respectively, represented the retiree-only portion for each year, as a percentage of annual covered payroll. The rate is equal to the cost of providing one-year term life insurance. The funding policy for the SDBF program is to assure that adequate resources are available to meet all death benefit payments for the upcoming year; the intent is not to prefund retiree term life insurance during employees’ entire careers. The City’s contributions to the SDBF for the year ended September 30, 20 21 were $5,233 representing contributions for both active and retiree coverage, which equaled the required contributions each year. 47 Total OPEB Liability. The Total OPEB Liability in the December 31, 2021 actuarial valuation was determined using the following actuarial assumptions and inputs: Measurement year ended December 31,2021 Inflation rate 2.50% per annum Discount rate 1.84% Actuarial cost method Entry Age Normal Method Projected salary increases 3.50% to 11.5% including inflation Administrative expenses All administrative expenses are paid through the Pension Trust and accounted for under reporting requirements under GASB Statement No. 68. Mortality Rates - Service Retirees 2019 Municipal Retirees of Texas Mortality Tables. The rates are projeted on a fully generational bases with scale UMP. Mortality Rates - Disabled Retirees 2019 Municipal Retirees of Texas Mortality Tables with a 4 year set forward for males and a 3 year set- forward for females.In addition,a 3.5%and 3% minimum mortality rate will be applied to reflect the impairment for younger members who become disabled for males and females,respectively.The rates are projected on a fully generational basis by scale UMP to account for future mortality improvements subject to the floor. Changes in assumptions reflect the annual change in the municipal bond rate. The actuarial assumptions used in the December 31, 2021 valuation were based on the results of an actuarial experience study for the period December 31, 2014 to December 31, 2018. Discount Rate. The SDBF program is treated as an unfunded OPEB plan because the SDBF trust covers both actives and retirees and the assets are not segregated for these groups. As such, a single discount rate of 2.00% was used to measure the total OPEB liability. Because the plan is essentially a “pay-as-you-go” plan, the single discount rate is equal to the prevailing municipal bond rate. The source of the municipal bond rate was fixed-income municipal bonds with 20 years to maturity that include only federally tax- exempt municipal bonds as reported in Fidelity Index’s “20-year Municipal GO AA Index” as of December 31, 2020. Discount Rate Sensitivity Analysis. The following schedule shows the impact of the total OPEB liability if the discount rate used was 1% less than and 1% greater than the discount rate that was used (1.84%) in measuring the total OPEB liability. 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate (0.84%)(1.84%)(2.84%) Total SDB OPEB Liability 1,470,379$ 1,153,668$ 920,379$ 48 Changes in the Total OPEB Liability. Total City’s Total OPEB Liability (TOL), based on the above actuarial factors, as of December 31, 2021, the measurement and actuarial valuation date, was calculated as follows: Total OPEB Liability Balance at 12/31/2020 1,033,078$ Changes for the year: Service cost 70,429 Interest 21,248 Difference between expected and actual experience 1,360)( Changes of assumptions or other inputs 42,012 Benefit payments, including refunds of employee contributions 11,739)( Net changes 120,590 Balance at 12/31/2021 1,153,668$ Changes in assumptions and other inputs reflect a change in the discount rate from 2.00% to 1.84%. OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB. For the year ended September 30, 2022, the City recognized OPEB expense of $138,311. Also, as of September 30, 2022, the City reported deferred outflows and inflows of resources related to the TMRS OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience 39,131$ 63,785$ Changes in actuarial assumptions 250,387 24,504 Contributions subsequent to the measurement date 3,846 - Total 293,364$ 88,289$ $3,846 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date will be recognized as a reduction of the Total OPEB liability for the year ending September 30, 2023. Other amounts reported as deferred outflows and inflows of resources related to the TMRS OPEB will be recognized in OPEB expense in future periods as follows: For the Year Ended September 30, 2023 46,633$ 2024 46,633 2025 41,314 2026 35,188 2027 26,365 Thereafter 5,096 City of Schertz Retiree Health Other Post-Employment Benefit Plan In addition to the TMRS OPEB, The City administers a single employer defined benefit healthcare plan for retirees, established under legal authority of the City Charter. The City is the only employer participating in the Plan. The Plan does not issue a publicly available financial report. 49 The City provides post-employment benefits for eligible participants enrolled in City-sponsored plans. The benefits are provided in the form of an implicit rate subsidy where the City contributes towards the retiree health premiums before achieving Medicare eligibility. While the Plan offers retiree only rates, a very small implicit liability still exists. Membership in the plan as of December 31, 2021, the valuation date, consisted of: Inactive employees or beneficiaries currently receiving benefits 9 Inactive employees entitled to but not yet receiving benefits - Active employees 314 Total 323 Current active employees must be eligible for service retirement under the Texas Municipal Retirement System. To attain this eligibility active employees must be at least age 60 with 5 years of service or have at least 20 years of employment with the City. When a regular, full-time employee retires, they are eligible to maintain their coverage in the City’s group health coverage. The City does not provide an explicit subsidy for retiree medical insurance. The liability for the City is due to the implicit rate. The City made no direct contributions for monthly premiums. The retirees pay 100% of the monthly premiums which range based on the type of plan from $508 for a retiree only to $1,796 for a retiree and their family. The City’s Retiree Health OPEB Liability (TOL) as of December 31, 2021, was calculated as follows: Total OPEB Liability Balance at 12/31/2020 2,466,556$ Changes for the year: Service cost 161,830 Interest 50,064 Difference between expected and actual experience 134,106 Changes of assumptions or other inputs 191,684)( Benefit payments, including refunds of employee contributions 88,569)( Net changes 65,747 Balance at 12/31/2021 2,532,303$ The actuarial valuation was performed as of December 31, 2021. Changes of assumptions reflect a change in the discount rate from 2.00% as of December 31, 2020 to 1.84% as of December 31, 2021, revised TMRS demographic assumptions, and updates to both the health care trend and participation assumptions. The following presents the TOL of the City, calculated using the discount rate of 1.84% as well as what the City’s TOL would be if it were calculated using a discount rate that is 1-percentage point lower (0.84%) and 1-percentage point higher (2.84%) than the current rate: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate (0.84%)(1.84%)(2.84%) Total OPEB liability - retiree health 2,774,522$ 2,532,303$ 2,308,980$ The following presents what the total OPEB liability of the City would be if it were calculated using healthcare cost trend rates that are 1-percentage point lower or 1-percentage point higher than the current healthcare cost trends: Current Healthcare Cost 1% Decrease Trend Rate Assumption 1% Increase Total OPEB liability - retiree health 2,218,593$ 2,532,303$ 2,905,944$ 50 For the year ended September 30, 2022, the City recognized OPEB expense of $219,176. Also, as of September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience 132,787$ 236,516$ Changes in actuarial assumptions 366,035 221,021 Contributions subsequent to the measurement date 51,833 - Total 550,655$ 457,537$ $51,833 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date will be recognized as a reduction of the Total OPEB liability for the year ending September 30, 2023. Other amounts reported as deferred outflows and inflows of resources related to the City’s Retiree Health OPEB will be recognized in OPEB expense as follows: For the Year Ended September 30, 2023 7,281$ 2024 7,281 2025 7,281 2026 7,281 2027 7,281 Thereafter 4,880 C. Joint Ventures Schertz/Seguin Local Government Corporation The Schertz/Seguin Local Government Corporation is a public, nonprofit corporation organized to aid, assist, and act on behalf of the cities of Schertz and Seguin in acquiring, constructing, maintaining, and operating a water utility system. The participating governments have an ongoing financial responsibility to fund the operation of the corporation through either purchase of services or by subsidizing the operations. Payments to the corporation are generally for the purchase of water treatment and for covering the Corporation’s debt service requirements; they are reflected as “operating expenses” in the water and sewer fund and totaled $3,913,110 for the year ended September 30, 2022. Separate financial statements for the Schertz/Seguin Local Government Corporation may be obtained from the City of Seguin, 210 East Gonzales Street, Seguin, Texas 78156. The City of Schertz is jointly liable, together with the City of Seguin, for operating deficits and long-term debt of the Schertz/Seguin Local Government Corporation. The Corporation had net revenue bonds outstanding in the amount of $150,094,421 (as of September 30, 2021, the most recent year for which information is available) to provide funds to build, improve, extend, enlarge and repair the Corporation’s utility system, fund a reserve, and pay the costs of bond issuance. The bond resolution pledges intergovernmental contract revenues from the cities of Schertz and Seguin (the participating governments) to bond holders. Under the intergovernmental water supply contract, the participating governments are unconditionally obligated to pay their respective shares of annual contract revenue bond debt service from the operation of their respective utility systems. The organizing documents for the Corporation provide that, in the event of dissolution, the net assets of the Corporation will be equally divided among the Cities of Schertz and Seguin. As such, the City’s net investment in the joint venture has been recorded in the Water and Sewer Fund in the amount of $17,358,291. This amount reflects the City’s portion of the net position of SSLGC as of September 30, 2021, the most recent fiscal year for which information is available. 51 Cibolo Valley Local Government Corporation The Cibolo Valley Local Government Corporation (CVLGC) is a public, nonprofit corporation organized to aid, assist, and act on behalf of the cities of Schertz and Cibolo in acquiring, constructing, maintaining, and operating a water utility system. The participating governments have an ongoing financial responsibility to fund the operation of the corporation through either purchase of services or by subsidizing the operations. Payments to the corporation are generally for the purchase of water treatment and for covering the Corporation’s debt service requirements; they are reflected as “operating expenses” in the water and sewer fund and totaled $300,000 for the year ended September 30, 2022. Separate financial statements for the CVLGC may be obtained from the City of Schertz, 1400 Schertz Parkway, Schertz, Texas 78154. The City of Schertz is jointly liable, together with the City of Cibolo, for operating deficits and long-term debt of CVLGC. In the event of dissolution, the net assets of the Corporation will be equally divided among the Cities of Schertz and Cibolo. As such, the City’s net investment in the joint venture has been recorded in the Water and Sewer Fund in the amount of $822,309 as of September 30, 2021. D. Commitments and Contingencies Tax Increment Financing (the “Zone”) The City is a principal in the City of Schertz Tax Increment Reinvestment Zone #2, pursuant to Chapter 311 of the Texas Tax Code. Under the terms of the Zone agreement, the City of Schertz, Bexar County, and San Antonio River Authority are funding infrastructure improvements through tax increment financing to the Sedona Development Project. At the time the Zone was created, the property tax base was “frozen” and increment taxes resulting from the increases to property tax base are being used to finance Zone improvements. The total projected cost is a combined figure of $45,000,000. Project costs of the developer will be funded up to 100% of the tax increment generated by the City of Schertz, Bexar County, and San Antonio River Authority (SARA). The City of Schertz (combined with SARA) have committed up to $32,877,000 of the total $45,000,000. The Zone has a statutory termination date of December 31, 2027. The TIRZ has collected $4,093,278 from taxing entities (net of administrative reimbursements) and remitted $3,325,000 to the developer as of September 30, 2022. 380 Agreements The Chapter 380 Incentive program, authorized by Chapter 380 of the Texas Local Government Code, enables the City of Schertz to provide grants or reimbursements from the City’s general fund. To become eligible for Chapter 380 Incentives, projects must: create at least of $100 million in new real and personal property; or generate at least $35 million in gross sales that is subject to the collection of local sales and use tax. Businesses that have a 380 Incentive agreement with the City are eligible to receive a reimbursement of taxes paid for the year if they have met the requirements outlined in the agreement by a certain date each year. For the fiscal year ended September 30, 2022, the City did not reimburse any property taxes paid under the terms of a Chapter 380 agreement. Economic Development Incentive Agreements The City of Schertz Economic Development Corporation (the SEDC) negotiates economic development incentive agreement on behalf of the SEDC and the City of Schertz (the City) on an individual basis. As of September 30, 2022, the City had nine active incentive agreements. On May 2, 2017, the City and the Corporation approved the Schertz Incentive Policy which outlines the City’s primary tools to attract commercial investment and promote economic development. Projects are selected on a case-by-case basis in accordance current policy and state laws at the discretion of the governing body. All incentive agreements are formalized through a performance agreement with specified terms and recapture criteria. 52 The SEDC Incentive program, authorized by Chapters 501, 502 and 505 of the Texas Local Government Code, enables the Corporation to fund allowable projects from the collection of one-half of one percent of sales tax proceeds collected in the City of Schertz. In accordance with state law, the SEDC Incentive Policy establishes grants and loans for businesses that create Primary Jobs for the following categories: Existing Businesses (3 years of operation within City), Small Businesses (fewer than 50 full-time jobs or annual sales less than $10 million), Large Impact Businesses (Up to $100 million in taxable property), and Extra Large Businesses (over $100 million in taxable property). The City and Corporation’s outstanding incentive agreement grants are as follows: FY 2020-21 Amt.Est. Remaining Grant SEDC - LGC 501.101 -$ 555,554$ SEDC - LGC 501.103 - 2,940,000 Service Concession Arrangement The City entered into an agreement with Young Men’s Christian Association of Greater San Antonio (“YMCA”), under which YMCA will operate and collect user fees from the Natatorium and Outdoor Pools for the next 20 years. YMCA will pay the city $100,000 annually over the course of the arrangement to cover costs of debt service related to the facility; the present value of these installment payments is estimated to be $782,371. The City will approve the rates and services that YMCA will provide, however, YMCA will retain all revenues earned from the operation of the Natatorium. The YMCA will remit all revenues received from operating the Outdoor Pools to the City with the exception of revenues earned from YMCA specific programs. As of September 30, 2022, the Natatorium is still under construction and is reported by the City as Construction in Progress. The City reports the Outdoor Pools and related equipment as capital assets recorded at historical cost. The City reports a receivable in the amount of $760,608 on the government-wide statements at year-end pursuant to the service concession arrangement, and a liability of $406,945 for the present value of maintenance costs estimated over the life of the Service Concession arrangement. The balance of these two amounts is recorded as a deferred inflow of resources. Litigation The City is the subject of various claims and litigation that have arisen in the course of its operations. Management is of the opinion that the City’s liability in these cases, if decided adversely to the City, will not have a material effect on the City’s financial position. Cibolo Creek Municipal Authority The Cibolo Creek Municipal Authority (CCMA) provides sewage treatment for the area in and around the City. In Fiscal year 2014, the City entered into an agreement with CCMA to construct a sewage treatment facility in the southern portion of the City to primarily serve citizens of the City but also neighboring Cities and future development. Because the City would be the primary customer at this time, the agreement stipulates that the City will pay all future debt service on the bonds issued by CCMA to finance the project. The City is the sole member at this time, so it is responsible for 100% of the project costs. Should other members join, the City’s share of the costs would be reduced. 53 Future debt service on the CCMA bonds are as follows: Year Ended September 30,Principal Interest Total 2023 170,000$ 242,800$ 412,800$ 2024 175,000 237,700 412,700 2025 180,000 232,450 412,450 2026 185,000 225,250 410,250 2027 195,000 217,850 412,850 2028-2032 1,090,000 969,450 2,059,450 2033-2037 1,340,000 721,950 2,061,950 2038-2042 1,680,000 372,050 2,052,050 2043-2044 775,000 46,800 821,800 Total 5,790,000$ 3,266,300$ 9,056,300$ Construction Commitments The City of Schertz has entered into commitments for various projects as follows: Primary Government:Estimated Project Expended to Estimated Future Cost to City Date Commitment Governmental Activities: FM 78 and Main Street 1,000,000$ 235,006$ 764,994$ Fire Station 3 8,480,775 8,480,775 - Building Improvements 1,600,000 72,560 1,527,440 Main Street Improvements 407,057 - 407,057 FM 1518 Street Improvements 5,000,000 600,656 4,399,344 Pedestrian Routes Project 350,000 149,234 200,766 Senior Center 800,000 793,181 6,819 YMCA-Bathroom Reovation 540,500 505,707 34,793 Window Replacement-Recreation Center 1,152,264 792,198 360,066 Total Governmental Commitments 19,330,596 11,629,317 7,701,279 Business-Type Activities: Woman Hollering WasteWater 5,940,424 1,211,157 4,729,267 Corbett Ground Storage Tank & Pumps 1,650,000 930 1,649,070 Corbett Elevated Water Tank 5,500,000 4,892,528 607,472 Trainer Hale Road Distribution Main 500,000 - 500,000 Scenic Hills/Greenridge 73,252 12,495 60,757 Oil-Water Separator 120,000 79,883 40,117 E Dietz Creek De-Silting 573,055 508,834 64,221 FM1103 Utility Relocation 1,315,000 1,265,958 49,042 Total Business-Type Activities 15,671,731 7,971,785 7,699,946 Total Estimated Future Commitments 35,002,327$ 19,601,102$ 15,401,225$ Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The City contracts with the Texas Municipal League Intergovernmental Risk Pool, a public entity risk pool currently operating as a common risk management and insurance program providing insurance coverage in the following areas: general liability, automobile liability and physical damage, law enforcement liability, worker's compensation, real and personal property, mobile equipment, and errors and omissions liability. TML is a multi-employer group that provides for a combination of risk sharing among pool participants and stop loss coverage. Contributions are set annually by the provider. Liability by the City is generally limited to the contributed amounts. There were no significant increases or decreases in coverage from the prior year. For the past three fiscal years, no claims or settlements have exceeded deductible amounts. 54 E. New Accounting Standards Significant new accounting standards issued by the Governmental Accounting Standards Board (GASB) not yet implemented by the City include the following: Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements – The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. GASB 94 will become effective for reporting periods beginning after June 15, 2022, and the impact has not yet been determined. Statement No. 96, Subscription-Based Information Technology Arrangements - This Statement provides guidance on the accounting and financial reporting for subscription -based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended. This Statement will become effective for reporting periods beginning after June 15, 2022, and the impact has not yet been determined. GASB Statement No. 100, Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62 - The primary objective of this Statement is to enhance accounting and financial re porting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. This Statement will become effective for reporting periods beginning after June 15, 2023, and the impact has not yet been determined. GASB Statement No. 101, Compensated Absences - The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. This Statement will become effective for reporting periods beginning after December 15, 2023, and the impact has not yet been determined. REQUIRED SUPPLEMENTARY INFORMATION Variance With Final Budget Original Final Actual Positive Budget Budget Amounts (Negative) REVENUES Taxes 28,327,000$ 28,799,800$ 29,892,435$ 1,092,635$ Permits and fees 1,767,470 1,767,470 2,204,543 437,073 Service fees 1,802,762 1,802,762 2,134,517 331,755 Fines and fees 832,281 832,281 657,480 174,801)( Intergovernmental 1,669,014 2,219,014 1,730,576 488,438)( Investment earnings 135,000 135,000 90,883 44,117)( Miscellaneous 623,050 623,050 613,268 9,782)( Total Revenues 35,156,577 36,179,377 37,323,702 1,144,325 EXPENDITURES General government: Council 129,252 129,252 100,694 28,558 City manager 1,333,588 1,397,729 1,341,557 56,172 Municipal court 388,838 404,538 372,395 32,143 311 customer relations 117,235 124,385 118,400 5,985 Planning & zoning 326,153 677,715 230,653 447,062 Legal 140,000 140,000 110,717 29,283 City secretary 216,259 224,159 221,127 3,032 Nondepartmental 1,874,372 2,099,804 1,699,984 399,820 Public affairs 642,486 681,986 632,794 49,192 Engineering 946,519 991,034 904,710 86,324 Citizens assistance 342,666 312,666 282,518 30,148 Special events 24,000 24,000 29,568 5,568)( Total General Government 6,481,368 7,207,268 6,045,117 1,162,151 Public safety: Police department 10,672,966 11,015,766 10,592,956 422,810 Fire department 6,614,057 7,217,866 7,029,409 188,457 Inspection 1,088,400 1,045,000 1,011,446 33,554 Total Public Safety 18,375,423 19,278,632 18,633,811 644,821 Public environment: Streets 1,926,970 2,002,970 1,926,603 76,367 Total Public Environment 1,926,970 2,002,970 1,926,603 76,367 Parks and recreation: Parks 1,661,936 1,823,731 1,593,522 230,209 Pools 569,878 569,878 589,272 19,394)( Community/Civic Center 384,945 414,245 395,000 19,245 Total Parks and Recreation 2,616,759 2,807,854 2,577,794 230,060 Cultural: Library 1,161,611 1,189,773 1,144,684 45,089 Total Cultural 1,161,611 1,189,773 1,144,684 45,089 CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 55 Variance With Final Budget Original Final Actual Positive Budget Budget Amounts (Negative) EXPENDITURES (CONTINUED) Administration: Information technology 2,707,439 2,743,139 2,653,434 89,705 Human resources 738,019 755,469 654,569 100,900 Finance 704,969 738,569 728,343 10,226 Purchasing & asset management 257,714 281,914 277,858 4,056 Building maintenance 1,816,339 1,929,739 1,638,402 291,337 Fleet service 1,304,158 1,306,111 1,217,320 88,791 Interfund charges 3,085,916)( 3,085,916)( 3,085,916)( - Total Administration 4,442,722 4,669,025 4,084,010 585,015 Total Expenditures 35,004,853 37,155,522 34,412,019 2,743,503 Excess of revenues over expenditures 151,724 976,145)( 2,911,683 3,887,828 OTHER FINANCING SOURCES (USES) Transfers in 237,706 237,706 37,853 199,853)( Transfers out 877,979)( 1,958,091)( 2,361,204)( 403,113)( Total Other Financing Sources (Uses)640,273)( 1,720,385)( 2,323,351)( 602,966)( NET CHANGE IN FUND BALANCE 488,549)( 2,696,530)( 588,332 3,284,862 FUND BALANCE - BEGINNING 16,478,567 16,478,567 16,478,567 - FUND BALANCE - ENDING 15,990,018$ 13,782,037$ 17,066,899$ 3,284,862$ CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL FUND BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2022 56 Variance With Final Budget Original Final Actual Positive Budget Budget Amounts (Negative) REVENUES Taxes 5,408,000$ 5,408,000$ 6,025,703$ 617,703$ Investment income 141,000 141,000 201,279 60,279 Total Revenues 5,549,000 5,549,000 6,226,982 677,982 EXPENDITURES Current: General government 3,726,923 3,725,423 218,302 3,507,121 Administration 573,784 575,284 531,783 43,501 Total Expenditures 4,300,707 4,300,707 750,085 3,550,622 OTHER FINANCING SOURCES (USES) Transfers out - - 1,240,000)( 1,240,000)( Total Other Financing Sources (Uses)- - 1,240,000)( 1,240,000)( NET CHANGE IN FUND BALANCE 1,248,293 1,248,293 4,236,897 2,988,604 FUND BALANCE - BEGINNING 21,806,231 21,806,231 21,806,231 - FUND BALANCE - ENDING 23,054,524$ 23,054,524$ 26,043,128$ 2,988,604$ CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL ECONOMIC DEVELOPMENT CORPORATION FOR THE YEAR ENDED SEPTEMBER 30, 2022 57 58 CITY OF SCHERTZ, TEXAS NOTES TO BUDGETARY SCHEDULES SEPTEMBER 30, 2022 Budgetary Information - The budget is prepared in accordance with accounting principles generally accepted in the United States of America. The City maintains strict budgetary controls. The objective of these controls is to ensure compliance with legal provision embodied in the annual appropriated budget approved by the City Council and as such is a good management control device. Annual budgets are ad opted for the general fund, debt service fund, economic development corporation fund, hotel occupancy tax fund, park fund, tree mitigation, police forfeiture fund, library advisory board fund, and the historical committee fund. Project - length financial plans are adopted for capital projects funds. Budgetary preparation and control are exercised at the department level. Actual expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. For the fiscal year ended September 30, 20 22, actual expenditures did not exceed budgeted expenditures at the fund level for any of the City’s funds. Encumbrance accounting, in which appropriations are recorded as budgetary expenditures, is not utilized by the City. Measurement Date December 31,2021 2020 2019 Total pension liability Service cost 4,211,795$ 3,761,994$ 3,421,878$ Interest on total pension liability 5,766,957 5,326,206 4,898,478 Difference between expected and actual experience 1,060,260 154,592)( 108,478)( Change of assumptions - - 263,015 Benefit payments/refunds of contributions 2,885,733)( 2,372,023)( 2,244,447)( Net Change in Total Pension Liability 8,153,279 6,561,585 6,230,446 Total Pension Liability, Beginning 84,773,362 78,211,777 71,981,331 Total Pension Liability, Ending (a)92,926,641$ 84,773,362$ 78,211,777$ Plan fiduciary net position Contributions - employer 3,831,461$ 3,327,434$ 3,163,340$ Contributions - employee 1,643,398 1,474,466 1,380,585 Net investment income 9,113,755 4,760,749 8,093,416 Benefit payments/refunds of contributions 2,885,733)( 2,372,023)( 2,244,447)( Administrative expenses 42,101)( 30,767)( 45,681)( Other 288 1,200)( 1,373)( Net Change in Fiduciary Position 11,661,068 7,158,659 10,345,840 Fiduciary Net Position, Beginning 69,798,222 62,639,563 52,293,723 Fiduciary Net Position, Ending (b)81,459,290 69,798,222 62,639,563 Net pension liability = (a)-(b)11,467,351$ 14,975,140$ 15,572,214$ Fiduciary Net Position as a Percentage of Total Pension Liability 87.66%82.34%80.09% Covered Payroll 23,477,118$ 21,063,794$ 19,722,641$ Net Pension Liability as a Percentage of Covered Payroll 48.84%71.09%78.96% Note:GASB Statement No.68 requires 10 years of data to be provided in this schedule.As of year-end,all years are not available. Additional years will be added in the future as the information becomes available. CITY OF SCHERTZ, TEXAS SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS TEXAS MUNICIPAL RETIREMENT SYSTEM FOR THE YEAR ENDED SEPTEMBER 30, 2022 59 2018 2017 2016 2015 2014 3,301,265$ 3,073,538$ 2,855,745$ 2,724,337$ 2,558,743$ 4,505,483 4,111,517 3,763,562 3,556,428 3,245,266 34,393 416,585 139,216 120,434 122,286)( - - - 59,193 - 1,914,159)( 1,843,774)( 1,581,272)( 1,570,211)( 1,068,487)( 5,926,982 5,757,866 5,177,251 4,890,181 4,613,236 66,054,349 60,296,483 55,119,232 50,229,051 45,615,815 71,981,331$ 66,054,349$ 60,296,483$ 55,119,232$ 50,229,051$ 3,033,936$ 2,793,644$ 2,627,335$ 2,542,565$ 2,403,929$ 1,326,518 1,232,232 1,152,864 1,095,260 1,077,097 1,540,890)( 5,999,805 2,602,572 53,742 1,841,586 1,914,159)( 1,843,774)( 1,581,272)( 1,570,211)( 1,068,487)( 29,768)( 31,080)( 29,385)( 32,727)( 19,219)( 1,554)( 1,575)( 1,583)( 1,616)( 1,580)( 874,083 8,149,252 4,770,531 2,087,013 4,233,326 51,419,640 43,270,388 38,499,857 36,412,844 32,179,518 52,293,723 51,419,640 43,270,388 38,499,857 36,412,844 19,687,608$ 14,634,709$ 17,026,095$ 16,619,375$ 13,816,207$ 72.65%77.84%71.76%69.85%72.49% 18,896,766$ 17,603,310$ 16,478,620$ 15,648,114$ 15,389,154$ 104.19%83.14%103.32%106.21%89.78% 60 Fiscal Year Ended September 30,2022 2021 2020 Actuarially determined contribution 4,245,872$ 3,700,948$ 3,235,479$ Contributions in relation to the actuarially determined contribution 4,245,872 3,700,948 3,235,479 Contribution deficiency (excess)- - - Covered payroll 26,163,046 22,879,083 20,401,412 Contributions as a percentage of covered payroll 16.23%16.18%15.86% Valuation Date: Methods and Assumptions Used to Determine Contribution Rates: Actuarial cost method Entry age normal Amortization method Level percentage of payroll, closed Remaining amortization period 25 years Asset valuation method 10 year smoothed market; 12% soft corridor Inflation 2.5% Salary increases 3.50% to 11.50% including inflation Investment rate of return 6.75% Retirement age Mortality Post-retirement:2019 Municpal Retirees of Texas Mortality Tables.The rates are projected on a fully generational basis with scale UMP.Pre-retirement: PUB(10)mortality tables,with the Public Safety table used for males and the General Employee table used for females.The rates are projected on a fully generational basis with scale UMP. CITY OF SCHERTZ, TEXAS SCHEDULE OF EMPLOYER CONTRIBUTIONS TEXAS MUNICIPAL RETIREMENT SYSTEM FOR THE YEAR ENDED SEPTEMBER 30, 2022 Note:GASB Statement No.68 requires 10 years of data to be provided in this schedule.As of year-end,all years are not available. Additional years will be added in the future as the information becomes available. Actuarially determined contribution rates are calculated as of December 31st and become effective on January 1st, 13 months and a day later. Experience-based table of rates that are specific to the City's plan of benefits.Last updated for the 2019 valuation pursuant to an experience study of the period 2014-2018. NOTES TO SCHEDULE OF CONTRIBUTIONS 61 2019 2018 2017 2016 2015 3,129,413$ 2,971,592$ 2,756,511$ 2,592,593$ 2,487,856$ 3,129,413 2,971,592 2,756,511 2,592,593 2,487,856 - - - - - 19,520,269 18,605,654 17,347,849 16,175,988 15,486,735 16.03%15.97%15.89%16.03%16.06% 62 Measurement Date December 31,2021 2020 2019 2018 2017 Total OPEB liability Service cost 70,429$ 50,554$ 33,528$ 37,794$ 29,926$ Interest on total OPEB liability 21,248 22,915 26,904 21,182 20,123 Differences in actuarial experience 1,360)( 4,382)( 105,282)( 86,276 - Change of assumptions 42,012 158,118 148,494 54,027)( 57,257 Benefit payments 11,739)( 4,213)( 3,945)( 3,779)( 3,521)( Net change in total OPEB liability 120,590 222,992 99,699 87,446 103,785 Total OPEB liability, beginning 1,033,078 810,086 710,387 622,941 519,156 Total OPEB liability, ending (a)1,153,668$ 1,033,078$ 810,086$ 710,387$ 622,941$ Covered-employee payroll 23,477,118$ 21,063,794$ 19,722,641$ 18,896,766$ 17,603,310$ Total OPEB liability as a percentage of covered-employee payroll 4.91%4.90%4.11%3.76%3.54% Valuation Date: Methods and Assumptions Used to Determine Contribution Rates: Inflation 2.50% Salary increases Discount rate Administrative expenses Mortality rates - service retirees Mortality rates - disabled retirees Other information Changes in actuarial assumptions reflect changes in the discount rate and,in 2019,changes in assumptions adopted from review of plan provisions. CITY OF SCHERTZ, TEXAS SCHEDULE OF CHANGES IN TMRS OTHER POST-EMPLOYMENT BENEFIT LIABILITY AND RELATED RATIOS FOR THE YEAR ENDED SEPTEMBER 30, 2022 Note:10 years of data is required to be provided in this schedule.As of year-end,all years are not available.Additional years will be added in the future as the information becomes available. NOTES TO SCHEDULE No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement No. 75 to pay related benefits. Actuarially determined contribution rates are calculated as of December 31st and become effective on January 1st,13 months and a day later. All administrative expenses are paid through the Pension Trust and accounted for under reporting requirements under GASB Statement No. 68. 3.50% to 11.50% including inflation 2.00% 2019 Municipal Retirees of Texas Mortality Tables.The rates are projected on a fully generational basis with scale UMP. 2019 Municipal Retirees of Texas Mortality Tables with a 4 year setforward for males and a 3 year set-forward for females.In addition, a 3.5%and 3%minimum mortality rate will be applied to reflect the impairment for younger members who become disabled for males and females,respectively.The rates are projected on a fully generational basis by Scale UMP to account for future mortality improvements subject to the 3% floor. 63 Measurement Date December 31,2021 2020 2019 2018 2017 Total OPEB liability Service cost 161,830$ 141,084$ 125,648$ 121,821$ 107,517$ Interest on total OPEB liability 50,064 60,561 78,646 67,947 69,435 Difference in actuarial experience 134,106 4,341 343,086)( 14,962 - Change of assumptions 191,684)( 161,146 275,398 81,106)( 96,092 Benefit payments 88,569)( 64,499)( 59,401)( 57,530)( 42,189)( Net change in total OPEB liability 65,747 302,633 77,205 66,094 230,855 Total OPEB liability, beginning 2,466,556 2,163,923 2,086,718 2,020,624 1,789,769 Total OPEB liability, ending (a)2,532,303$ 2,466,556$ 2,163,923$ 2,086,718$ 2,020,624$ Covered payroll 23,290,477$ 20,870,983$ 19,521,924$ 18,974,951$ 16,068,891$ Total OPEB liability as a percentage of covered payroll 10.87%11.82%11.08%11.00%12.57% Valuation Date:December 31, 2021 Methods and Assumptions Used to Determine Contribution Rates: Actuarial cost method Individual entry-age Discount rate 1.84% as of December 31, 2021 Inflation 2.50% Salary increases 3.50% to 11.50% including inflation Demographic assumptions Mortality Health care trend rates Participation rates Other information CITY OF SCHERTZ, TEXAS SCHEDULE OF CHANGES IN CITY RETIREE HEALTH OTHER POST-EMPLOYMENT BENEFIT LIABILITY AND RELATED RATIOS FOR THE YEAR ENDED SEPTEMBER 30, 2022 The discount rate changed from 2.00%as of December 31,2020 to 1.84%as of December 31,2021.Additionally,the period of service used for the allocation of service costs was changed to only reflect service with the City of Schertz and the dependent coverage assumption for males was increased. Note:10 years of data is required to be provided in this schedule.As of year-end,all years are not available.Additional years will be added in the future as the information becomes available. NOTES TO SCHEDULE Based on the experience study covering the four-year period ending December 31,2018 as conducted for the Texas Municipal Retirement System (TMRS). For healthy retirees,the gender-distinct 2019 Municipal Retirees of Texas mortality tables are used.The rates are projected on a fully generational basis using the ultimate mortality improvement rates in the MP tables to account for future mortality improvements. Initial rate of 7.00%declining to an ultimate rate of 4.15%after 13 years. For all non-Medicare retirees, 30% if retiring from age 50 to 59, and 35% if retiring from age 60 to 64. 64 SUPPLEMENTARY INFORMATION Comparative Schedules – Governmental Funds General Fund Economic Development Corporation Debt Service Fund Capital Projects Fund American Rescue Plan Act Fund Combining Statements and Individual Fund Schedules - Nonmajor Governmental Funds Hotel Occupancy Fund - will account for proceeds of hotel occupancy taxes to be used strictly for those kinds of programs that promote the tourism industry. Park Fund - will account for revenues from developers' fees (in lieu of park land dedication), grants, and donations and is designed to monitor and manage improvement of the City’s park system. Tree Mitigation Fund - will account for revenues from permits, grants and donations to preserve and replace trees in the City. Treasury Forfeitures Fund - will account for revenue received from drug related cases in conjunction with other law enforcement agencies within the jurisdiction of the U.S. Treasury department. Justice Forfeitures Fund - will account for revenue received from drug related cases in conjunction with other law enforcement agencies within the jurisdiction of the US Department of Justice. State Forfeitures Fund - will account for revenue received from drug related cases in conjunction with other law enforcement agencies within the jurisdiction of the State Forfeiture Program. Grant Fund - will account for revenue and expenditures related to federal and state grant programs. Library Advisory Board - to account for certain fees generated at the library to be used by the Board for general improvements to the Library. Historical Committee Fund - will account for funds received for the preservation of the history of the City. Capital Recovery Roadways Fund - to account for a fee assessed for capital recovery on new construction. 2022 2021 ASSETS Cash and cash equivalents 12,128,331$ 11,733,703$ Investments 2,404,552 2,514,059 Receivables (net of allowances) Taxes 3,174,973 2,924,472 Accounts and other 2,128,452 1,636,735 Due from other funds 648,630 678,444 Inventory 154,096 134,373 Prepaid items 28,090 28,090 Restricted assets: Cash and cash equivalents 869,564 946,454 Total Assets 21,536,688 20,596,330 LIABILITIES Accounts payable 1,752,626 921,978 Accrued salaries and benefits 431,088 1,180,560 Retainage payable - 1,007 Customer deposits 105,891 60,492 Due to other governments 83,060 16,139 Due to other funds 16,139 40,589 Unearned revenues 50,078 - Total Liabilities 2,438,882 2,220,765 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 2,030,907 1,896,998 Total Deferred Inflows of Resources 2,030,907 1,896,998 FUND BALANCES Nonspendable for: Inventory 154,096 134,373 Prepaid items 28,090 28,090 Restricted for: Police and public safety/municipal court 302,725 287,199 Municipal court 812,283 816,152 PEG capital fees 967,885 889,139 Animal control 42,825 42,416 Scholarships 134,632 116,505 Committed for: Civic Center/CIED 1,021,594 907,676 Assigned for: Property replacement 909,889 902,849 Subsequent year's budget 446,341 598,549 Unassigned 12,246,539 11,755,619 Total Fund Balances 17,066,899 16,478,567 Total Liabilities, Deferred inflows of Resources, and Fund Balances 21,536,688$ 20,596,330$ CITY OF SCHERTZ, TEXAS COMPARATIVE BALANCE SHEETS GENERAL FUND SEPTEMBER 30, 2022 (WITH COMPARATIVE TOTALS FOR 2021) 65 2022 2021 REVENUES Taxes 29,892,435$ 27,913,222$ Permits and fees 2,204,543 1,593,382 Service fees 2,134,517 1,628,589 Fines and fees 657,480 637,638 Intergovernmental 1,730,576 1,623,282 Investment earnings 90,883 29,147 Miscellaneous 613,268 781,333 Total Revenues 37,323,702 34,206,593 EXPENDITURES Current: General government 6,051,339 6,008,482 Public safety 18,243,849 17,166,400 Public environment 1,766,558 1,382,185 Parks and recreation 2,567,764 2,494,684 Cultural 1,144,684 1,040,276 Administration 3,991,262 3,858,317 Capital outlay 646,563 566,078 Total Expenditures 34,412,019 32,516,422 Excess (Deficiency) of Revenues Over Expenditures 2,911,683 1,690,171 OTHER FINANCING SOURCES (USES) Proceeds from - 136,535 37,853 - Transfers in 2,361,204)( 2,317,117)( Total Other Financing Sources (Uses)2,323,351)( 2,180,582)( NET CHANGE IN FUND BALANCE 588,332 490,411)( FUND BALANCES - BEGINNING 16,478,567 16,968,978 FUND BALANCES - ENDING 17,066,899$ 16,478,567$ (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED 2021) CITY OF SCHERTZ, TEXAS COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 66 2022 2021 ASSETS Cash and cash equivalents 22,721,336$ 18,542,752$ Investments 2,227,105 2,206,135 Receivables, net of allowances: Taxes 1,101,960 1,054,214 Accounts and other 7,949 7,949 Prepaid items 990 990 Total Assets 26,059,340 21,812,040 LIABILITIES Accounts payable 16,212 5,809 Total Liabilities 16,212 5,809 FUND BALANCES Restricted for: Economic development 26,043,128 21,806,231 Total Fund Balances 26,043,128 21,806,231 Total Liabilities and Fund Balances 26,059,340$ 21,812,040$ CITY OF SCHERTZ, TEXAS COMPARATIVE BALANCE SHEETS ECONOMIC DEVELOPMENT CORPORATION SEPTEMBER 30, 2022 (WITH COMPARATIVE TOTALS FOR 2021) 67 2022 2021 REVENUES Taxes 6,025,703$ 5,615,928$ Investment earnings 201,279 56,144 Total Revenues 6,226,982 5,672,072 EXPENDITURES Current: General government 218,302 306,025 Administration 531,783 528,442 Total Expenditures 750,085 834,467 Excess (Deficiency) of Revenues Over (Under) Expenditures 5,476,897 4,837,605 OTHER FINANCING SOURCES (USES) Transfers out 1,240,000)( 4,050,000)( Total Other Financing Sources (Uses)1,240,000)( 4,050,000)( NET CHANGE IN FUND BALANCE 4,236,897 787,605 FUND BALANCES - BEGINNING 21,806,231 21,018,626 FUND BALANCES - ENDING 26,043,128$ 21,806,231$ (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED 2021) CITY OF SCHERTZ, TEXAS COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ECONOMIC DEVELOPMENT CORPORATION FOR THE YEAR ENDED SEPTEMBER 30, 2022 68 2022 2021 ASSETS Cash and cash equivalents 1,864,408$ 1,087,376$ Receivables, net of allowances: Taxes 172,341 133,778 Total Assets 2,036,749 1,221,154 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 172,340 133,778 Total Deferred Inflows of Resources 172,340 133,778 FUND BALANCES Restricted for: Debt service 1,864,409 1,087,376 Total Fund Balances 1,864,409 1,087,376 Total Deferred Inflows of Resources and Fund Balances 2,036,749$ 1,221,154$ CITY OF SCHERTZ, TEXAS COMPARATIVE BALANCE SHEETS DEBT SERVICE FUND SEPTEMBER 30, 2022 (WITH COMPARATIVE TOTALS FOR 2021) 69 Variance With 2022 Final Budget 2021 Original Final Actual Positive Actual Budget Budget Amounts (Negative)Amounts REVENUES Property taxes 7,329,862$ 7,329,862$ 7,182,900$ 146,962)$( 7,102,016$ Investment income 5,000 5,000 143,428 138,428 1,593 Miscellaneous 100,000 100,000 75,000 25,000)( 125,000 Total Revenue 7,434,862 7,434,862 7,401,328 33,534)( 7,228,609 EXPENDITURES Debt service: Principal 4,920,000 4,920,000 4,805,000 115,000 4,955,000 Interest and fiscal charges 1,706,915 1,706,915 1,779,157 72,242)( 1,801,467 Bond issue costs 50,000 50,000 90,626 40,626)( 140,140 Total Expenditures 6,676,915 6,676,915 6,674,783 2,132 6,896,607 Excess (Deficiency) of Revenues over Expenditures 757,947 757,947 726,545 35,666)( 332,002 OTHER FINANCING SOURCES (USES) Issuance of debt - - - - 7,555,000 Issuance of refunding debt - - 4,070,000 4,070,000 - Premium on issuance of debt - - 421,632 421,632 - Payment to refunding escrow agent - - 4,443,881)( 4,443,881)( 629,992 Transfers in - - 2,737 2,737 8,223,452)( Transfers out - - - - 7,915 Total Other Financing Sources (Uses)- - 50,488 50,488 30,545)( NET CHANGE IN FUND BALANCE 757,947 757,947 777,033 19,086 301,457 FUND BALANCE - BEGINNING 1,087,376 1,087,376 1,087,376 - 785,919 FUND BALANCE - ENDING 1,845,323$ 1,845,323$ 1,864,409$ 19,086$ 1,087,376$ (WITH COMPARATIVE ACTUAL TOTALS FOR 2021) CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE DEBT SERVICE FUND BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2022 70 2022 2021 ASSETS Cash and cash equivalents 42,594,424$ 13,229,954$ Accounts receivable, net of allowance - 258,142 Total Assets 42,594,424 13,488,096 LIABILITIES Accounts payable 906,624 162,695 Retainage payable 281,284 154,437 Total Liabilities 1,187,908 317,132 FUND BALANCES Restricted for: Capital improvement 35,863,370 5,185,166 Committed for: Capital projects 5,543,146 7,985,798 Total Fund Balances 41,406,516 13,170,964 Total Liabilities and Fund Balance 42,594,424$ 13,488,096$ CITY OF SCHERTZ, TEXAS COMPARATIVE BALANCE SHEETS CAPITAL PROJECTS FUND SEPTEMBER 30, 2022 (WITH COMPARATIVE TOTALS FOR 2021) 71 2022 2021 REVENUES Intergovernmental -$ 724,993$ Investment earnings 196,624 12,333 Miscellaneous 450,000 501,922 Total Revenues 646,624 1,239,248 EXPENDITURES Capital outlay 9,544,074 4,582,289 Debt service: Bond issue costs 468,285 - Total Expenditures 10,012,359 4,582,289 Excess (Deficiency) of Revenues Over Expenditures 9,365,735)( 3,343,041)( OTHER FINANCING SOURCES (USES) Issuance of debt 31,540,000 6,384,362 Premium on issuance of debt 2,778,912 - Transfers in 3,285,112 - Transfers out 2,737)( 7,915)( Total Other Financing Sources (Uses)37,601,287 6,376,447 NET CHANGE IN FUND BALANCE 28,235,552 3,033,406 FUND BALANCES - BEGINNING 13,170,964 10,137,558 FUND BALANCES - ENDING 41,406,516$ 13,170,964$ (WITH COMPARTIVE TOTALS FOR THE YEAR ENDED 2021) CITY OF SCHERTZ, TEXAS COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE CAPITAL PROJECTS FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 72 Hotel Occupancy Park Tree Treasury Fund Fund Mitigation Forfeitures ASSETS Cash and cash equivalents 1,631,582$ 264,072$ 722,434$ 83,400$ Accounts receivable, net of allowance 77,949 - - - Total Assets 1,709,531 264,072 722,434 83,400 LIABILITIES Accounts payable 6,726 2,551 14,374 77,996 Retainage payable 56,187 - - - Due to other funds - - - - Total Liabilities 62,913 2,551 14,374 77,996 FUND BALANCES Restricted for: Tourism development 1,646,618 - - - Parks and tree mitigation - 261,521 708,060 - Police forfeiture - - - 5,404 Roadways - - - - Historical Committee and library - - - - Unassigned - - - - Total Fund Balances 1,646,618 261,521 708,060 5,404 Total Liabilities and Fund Balances 1,709,531$ 264,072$ 722,434$ 83,400$ Special Revenue Funds CITY OF SCHERTZ, TEXAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2022 73 Capital Projects Fund Library Historical Capital Total Nonmajor Justice State Grant Advisory Committee Recovery Governmental Forfeitures Forfeitures Fund Board Fund Roadways Funds 134,573$ 4,779$ -$ 69,839$ 26,988$ 2,559,354$ 5,497,021$ - - - - - - 77,949 134,573 4,779 - 69,839 26,988 2,559,354 5,574,970 - - - 270 - - 101,917 - - - - - - 56,187 - - 648,630 - - - 648,630 - - 648,630 270 - - 806,734 - - - - - - 1,646,618 - - - - - - 969,581 134,573 4,779 - - - - 144,756 - - - - - 2,559,354 2,559,354 - - - 69,569 26,988 - 96,557 - - 648,630)( - - - 648,630)( 134,573 4,779 648,630)( 69,569 26,988 2,559,354 4,768,236 134,573$ 4,779$ -$ 69,839$ 26,988$ 2,559,354$ 5,574,970$ Special Revenue Funds 74 Hotel Occupancy Park Tree Treasury Fund Fund Mitigation Forfeiture REVENUES Occupancy tax 804,132$ -$ -$ -$ Permits and fees - - 136,950 - Service fees - - - - Fines and fees - - - 50,840 Intergovernmental - - - - Investment earnings 14,583 2,194 5,324 - Miscellaneous - - - - Total Revenues 818,715 2,194 142,274 50,840 EXPENDITURES Current: General government 242,875 - - - Public safety - - - - Parks and recreation - 10,040 82,110 - Cultural - - - - Administration 74,443 - - - Capital outlay 1,156,495 17,650 - 77,996 Total Expenditures 1,473,813 27,690 82,110 77,996 Excess (Deficiency) of Revenue Over Expenditures 655,098)( 25,496)( 60,164 27,156)( OTHER FINANCING SOURCES (USES) Transfer in - - - - Transfer out - - - - Total Other Financing Sources (Uses)- - - - NET CHANGE IN FUND BALANCES 655,098)( 25,496)( 60,164 27,156)( FUND BALANCES - BEGINNING 2,301,716 287,017 647,896 32,560 FUND BALANCES - ENDING 1,646,618$ 261,521$ 708,060$ 5,404$ Special Revenue Funds CITY OF SCHERTZ, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 75 Capital Projects Fund Library Historical Capital Total Nonmajor Justice State Grant Advisory Committee Recovery Governmental Forfeitures Forfeitures Fund Board Fund Roadways Funds -$ -$ -$ -$ -$ -$ 804,132$ - - - - - - 136,950 - - - 18,292 1,943 798,955 819,190 46,238 - - - - - 97,078 - - 94,509 - - - 94,509 784 - - 546 - 19,878 43,309 - - - 507 - - 507 47,022 - 94,509 19,345 1,943 818,833 1,995,675 - - - - 3,116 - 245,991 - - 16,256 - - - 16,256 - - - - - - 92,150 - - - 14,340 - - 14,340 - - - - - - 74,443 9,273 - - - - 60,519 1,321,933 9,273 - 16,256 14,340 3,116 60,519 1,765,113 37,749 - 78,253 5,005 1,173)( 758,314 230,562 - - - - 13,863 - 13,863 - - 51,840)( - - - 51,840)( - - 51,840)( - 13,863 - 37,977)( 37,749 - 26,413 5,005 12,690 758,314 192,585 96,824 4,779 675,043)( 64,564 14,298 1,801,040 4,575,651 134,573$ 4,779$ 648,630)$( 69,569$ 26,988$ 2,559,354$ 4,768,236$ Special Revenue Funds 76 Variance With 2022 Final Budget 2021 Original Final Actual Positive Actual Budget Budget Amounts (Negative)Amounts REVENUES Occupancy tax 520,000$ 520,000$ 804,132$ 284,132$ 518,921$ Investment earnings 5,250 5,250 14,583 9,333 2,095 Total Revenues 525,250 525,250 818,715 293,465 521,016 EXPENDITURES Current: General government 196,966 335,354 242,875 92,479 263,300 Administration 74,443 74,443 74,443 - 72,464 Capital outlay 20,000 1,170,000 1,156,495 13,505 - Total Expenditures 291,409 1,579,797 1,473,813 105,984 335,764 NET CHANGE IN FUND BALANCE 233,841 1,054,547)( 655,098)( 399,449 185,252 FUND BALANCE - BEGINNING 2,301,716 2,301,716 2,301,716 - 2,116,464 FUND BALANCE - ENDING 2,535,557$ 1,247,169$ 1,646,618$ 399,449$ 2,301,716$ (WITH COMPARATIVE ACTUAL TOTALS FOR 2021) CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL HOTEL OCCUPANCY FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 77 Variance With 2022 Final Budget 2021 Original Final Actual Positive Actual Budget Budget Amounts (Negative)Amounts REVENUES Licenses and permits 318,000$ 318,000$ -$ 318,000)$( -$ Investment earnings 1,025 1,025 2,194 1,169 293 Total Revenues 319,025 319,025 2,194 316,831)( 293 EXPENDITURES Current: Parks and recreation 25,000 25,000 10,040 14,960 4,500 Capital outlay 100,000 100,000 17,650 82,350 1,012 Total Expenditures 125,000 125,000 27,690 97,310 5,512 NET CHANGE IN FUND BALANCE 194,025 194,025 25,496)( 414,141)( 5,219)( FUND BALANCE - BEGINNING 287,017 287,017 287,017 - 292,236 FUND BALANCE - ENDING 481,042$ 481,042$ 261,521$ 219,521)$( 287,017$ (WITH COMPARATIVE ACTUAL TOTALS FOR 2021) CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL PARK FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 78 Variance With 2022 Final Budget 2021 Original Final Actual Positive Actual Budget Budget Amounts (Negative)Amounts REVENUES Licenses and permits 70,000$ 70,000$ 136,950$ 66,950$ 219,513$ Investment earnings 1,400 1,400 5,324 3,924 650 Total Revenues 71,400 71,400 142,274 70,874 220,163 EXPENDITURES Current: Parks and recreation 70,000 70,000 82,110 12,110)( 35,495 Total Expenditures 70,000 70,000 82,110 12,110)( 35,495 NET CHANGE IN FUND BALANCE 1,400 1,400 60,164 58,764 184,668 FUND BALANCE - BEGINNING 647,896 647,896 647,896 - 463,228 FUND BALANCE - ENDING 649,296$ 649,296$ 708,060$ 58,764$ 647,896$ (WITH COMPARATIVE ACTUAL TOTALS FOR 2021) CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL TREE MITITGATION FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 79 2022 2021 REVENUES Fines and fees 50,840$ -$ Total Revenues 50,840 - EXPENDITURES Capital outlay 77,996 - Total Expenditures 77,996 - NET CHANGE IN FUND BALANCE 27,156)( - FUND BALANCE - BEGINNING 32,560 32,560 FUND BALANCE - ENDING 5,404$ 32,560$ CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES TREASURY FORFEITURES FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 (WITH COMPARATIVE TOTALS FOR 2021) AND CHANGES IN FUND BALANCE 80 2022 2021 REVENUES Fines and fees 46,238$ 5,844$ Investment earnings 784 176 Total Revenues 47,022 6,020 EXPENDITURES Current: Public safety - 94,899 Capital outlay 9,273 24,750 Total Expenditures 9,273 119,649 NET CHANGE IN FUND BALANCE 37,749 113,629)( FUND BALANCE - BEGINNING 96,824 210,453 FUND BALANCE - ENDING 134,573$ 96,824$ (WITH COMPARATIVE TOTALS FOR 2021) FOR THE YEAR ENDED SEPTEMBER 30, 2022 CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES JUSTICE FORFEITURES FUND AND CHANGES IN FUND BALANCE 81 2022 2021 REVENUES Fines and fees -$ -$ Investment earnings - - Total Revenues - - EXPENDITURES Current: Public safety - 7,995 Total Expenditures - 7,995 NET CHANGE IN FUND BALANCE - 7,995)( FUND BALANCE - BEGINNING 4,779 12,774 FUND BALANCE - ENDING 4,779$ 4,779$ CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES STATE FORFEITURES FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 (WITH COMPARATIVE TOTALS FOR 2021) AND CHANGES IN FUND BALANCE 82 Variance With 2022 Final Budget 2021 Original Final Actual Positive Actual Budget Budget Amounts (Negative)Amounts REVENUES Service fees 16,000$ 16,000$ 18,292$ 2,292$ 9,104$ Investment earnings 200 200 546 346 111 Miscellaneous - - 507 507 13 Total Revenues 16,200 16,200 19,345 3,145 9,228 EXPENDITURES Current: Cultural 22,200 22,200 14,340 7,860 19,708 Total Expenditures 22,200 22,200 14,340 7,860 19,708 NET CHANGE IN FUND BALANCE 6,000)( 6,000)( 5,005 11,005 10,480)( FUND BALANCE - BEGINNING 64,564 64,564 64,564 - 75,044 FUND BALANCE - ENDING 58,564$ 58,564$ 69,569$ 11,005$ 64,564$ (WITH COMPARATIVE ACTUAL TOTALS FOR 2021) CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPEDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL LIBRARY ADVISORY BOARD FOR THE YEAR ENDED SEPTEMBER 30, 2022 83 Variance With 2022 Final Budget 2021 Original Final Actual Positive Actual Budget Budget Amounts (Negative)Amounts REVENUES Sale of merchandise 1,000$ 1,000$ 1,943$ 943$ 590$ Miscellaneous - - - - 2 Total Revenues 1,000 1,000 1,943 943 592 EXPENDITURES Current: General government 11,750 11,750 3,116 8,634 3,108 Total Expenditures 11,750 11,750 3,116 8,634 3,108 Excess of Revenues Over Expenditures 10,750)( 10,750)( 1,173)( 9,577 2,516)( OTHER FINANCING SOURCES (USES) Transfers in 10,750 10,750 13,863 3,113 3,109 Total Other Financing Sources (Uses)10,750 10,750 13,863 3,113 3,109 NET CHANGE IN FUND BALANCE - - 12,690 12,690 593 FUND BALANCE - BEGINNING 14,298 14,298 14,298 - 13,705 FUND BALANCE - ENDING 14,298$ 14,298$ 26,988$ 12,690$ 14,298$ (WITH COMPARATIVE ACTUAL TOTALS FOR 2021) CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL HISTORICAL COMMITTEE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 84 2022 2021 REVENUES Service fees 798,955$ 902,712$ Investment earnings 19,878 1,828 Total Revenues 818,833 904,540 EXPENDITURES Capital outlay 60,519 41,127 Total Expenditures 60,519 41,127 NET CHANGE IN FUND BALANCE 758,314 863,413 FUND BALANCE - BEGINNING 1,801,040 937,627 FUND BALANCE - ENDING 2,559,354$ 1,801,040$ CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES CAPITAL RECOVERY ROADWAYS FOR THE YEAR ENDED SEPTEMBER 30, 2022 (WITH COMPARATIVE TOTALS FOR 2021) AND CHANGES IN FUND BALANCE 85 STATISTICAL SECTION STATISTICAL SECTION (Unaudited) This part of the City of Schertz, Texas Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. 86 – 95 Revenue Capacity These schedules contain information to help the reader assess the City’s most significant local revenue sources. 96 – 104 Debt Capacity These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. 105 – 110 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 111 – 114 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. 115 – 120 2013 2014 2015 2016 Governmental activities Net investment in capital assets 57,543,618$ 62,792,671$ 68,125,738$ 74,237,004$ Restricted 7,788,354 10,401,728 13,343,280 17,095,325 Unrestricted 6,645,418 8,613,239 1,640,519 2,231,341 Total Governmental Activities Net Position 71,977,390$ 81,807,638$ 83,109,537$ 93,563,670$ Business-type activities Net investment in capital assets 53,071,836$ 53,674,437$ 59,625,205$ 64,210,231$ Restricted - - - - Unrestricted 11,902,282 16,450,988 14,243,922 15,737,470 Total Business-Type Activities Net Position 64,974,118$ 70,125,425$ 73,869,127$ 79,947,701$ Primary government Net investment in capital assets 110,615,454$ 116,467,108$ 127,750,943$ 138,447,235$ Restricted 7,788,354 10,401,728 13,343,280 17,095,325 Unrestricted 18,547,700 25,064,227 15,884,441 17,968,811 Total Primary Government Net Position 136,951,508$ 151,933,063$ 156,978,664$ 173,511,371$ Fiscal Year CITY OF SCHERTZ, TEXAS NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED) 86 TABLE 1 2017 2018 2019 2020 2021 2022 84,537,238$ 89,266,885$ 89,869,766$ 88,959,102$ 98,444,714$ 109,746,340$ 20,437,116 23,391,047 28,088,355 28,664,438 28,342,438 32,745,688 1,673,567 2,351,236 2,920,717 4,157,801 10,744,127 11,055,015 106,647,921$ 115,009,168$ 120,878,838$ 121,781,341$ 137,531,279$ 153,547,043$ 70,361,035$ 64,871,629$ 68,271,075$ 75,969,319$ 83,941,882$ 94,997,863$ 10,565,463 12,626,526 13,232,638 15,071,599 5,408,320 5,408,320 20,781,291 20,870,671 33,254,008 30,570,717 39,406,798 42,791,680 101,707,789$ 98,368,826$ 114,757,721$ 121,611,635$ 128,757,000$ 143,197,863$ 154,898,273$ 154,138,514$ 158,140,841$ 164,928,421$ 182,386,596$ 204,744,203$ 20,437,116 23,391,047 41,320,993 43,736,037 33,750,758 38,154,008 22,454,858 35,848,433 36,174,725 34,728,518 50,150,925 53,846,695 197,790,247$ 213,377,994$ 235,636,559$ 243,392,976$ 266,288,279$ 296,744,906$ Fiscal Year 87 2013 2014 2015 2016 Expenses Governmental activities: General government 7,066,087$ 6,958,530$ 6,443,227$ 6,557,778$ Public safety 9,567,595 10,025,703 10,836,712 12,141,968 Public environment 3,622,834 3,740,538 3,876,644 4,147,653 Parks and recreation 1,807,559 1,807,136 2,164,604 2,034,964 Cultural 907,676 870,159 892,194 954,871 Health 344,647 407,114 470,468 570,204 Administration 1,180,656 1,942,312 1,845,877 1,954,276 Interest and other fees 3,340,951 2,352,856 2,226,635 2,240,783 Total Governmental Activities Expenses 27,838,005 28,104,348 28,756,361 30,602,497 Business-type activities: Water and sewer 16,954,871 17,762,116 18,440,959 20,269,111 EMS 3,959,445 4,268,125 4,719,526 5,004,110 Total Business-Type Activities Expenses 20,914,316 22,030,241 23,160,485 25,273,221 Total Primary Government Expenses 48,752,321 50,134,589 51,916,846 55,875,718 Program Revenues Governmental activities: Charges for services: General government 2,230,800 1,974,637 1,840,547 1,507,252 Public safety 2,516,547 2,536,476 2,603,476 2,415,537 Public environment - - - - Parks and recreation 721,222 917,639 794,003 788,727 Cultural 305,932 309,897 325,178 326,079 Health 38,149 32,429 26,744 30,308 Operating grants and contributions 234,084 220,264 336,252 342,485 Capital grants and contributions 1,531,740 5,756,456 5,509,530 6,227,664 Total Governmental Activities Program Revenues 7,578,474 11,747,798 11,435,730 11,638,052 Business-type activities: Charges for services: Water and sewer 17,696,327 19,147,872 20,700,369 22,003,794 EMS 4,459,600 4,533,753 4,415,126 5,921,223 Capital grants and contributions 1,301,235 2,809,110 4,158,552 2,831,126 Total Business-Type Activities Program Revenues 23,457,162 26,490,735 29,274,047 30,756,143 Total Primary Government Program Revenues 31,035,636 38,238,533 40,709,777 42,394,195 Net (expense) revenue: Governmental activities 20,259,531)( 16,356,550)( 17,320,631)( 18,964,445)( Business-type activities 2,542,846 4,460,494 6,113,562 5,482,922 Total Primary Government Net Expense 17,716,685)( 11,896,056)( 11,207,069)( 13,481,523)( Fiscal Year CITY OF SCHERTZ, TEXAS CHANGE IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED) 88 TABLE 2 2017 2018 2019 2020 2021 2022 6,253,926$ 7,421,918$ 6,534,013$ 10,310,363$ 7,298,193$ 7,093,652$ 13,061,120 13,899,278 15,448,886 16,575,191 19,008,871 19,580,703 4,460,540 4,930,723 5,495,192 8,825,099 5,364,408 8,545,834 2,859,974 2,707,292 3,022,278 3,012,134 3,395,458 3,543,978 1,004,747 1,042,085 1,119,650 1,089,564 1,087,975 1,168,815 776,494 724,780 516,890 596,288 - - 3,052,102 3,067,983 3,853,255 3,419,407 4,360,229 4,455,947 2,355,714 2,125,687 2,196,180 2,028,065 1,797,520 2,490,474 33,824,617 35,919,746 38,186,344 45,856,111 42,312,654 46,879,403 21,346,078 23,579,854 25,608,390 24,349,219 25,280,964 27,833,986 6,006,178 6,110,407 6,529,631 6,051,296 7,784,670 8,234,500 27,352,256 29,690,261 32,138,021 30,400,515 33,065,634 36,068,486 61,176,873 65,610,007 70,324,365 76,256,626 75,378,288 82,947,889 874,737 1,013,698 947,538 836,246 651,211 686,470 4,131,548 4,104,911 3,177,329 3,276,129 3,079,945 3,922,957 - - 138,920 850,201 902,712 798,955 544,460 640,231 484,495 331,174 528,886 652,727 330,412 313,668 311,575 299,944 285,792 310,859 29,742 27,930 21,101 26,304 - - 552,878 776,942 692,042 2,113,673 1,925,939 3,970,029 10,043,483 4,744,489 1,319,793 531,096 7,959,576 6,987,788 16,507,260 11,621,869 7,092,793 8,264,767 15,334,061 17,329,785 25,390,713 27,099,237 27,333,475 29,709,279 27,724,929 30,677,566 6,366,894 6,092,559 6,596,618 6,114,891 7,709,027 9,420,909 6,111,474 3,132,348 1,975,524 292,408 6,935,191 6,143,957 37,869,081 36,324,144 35,905,617 36,116,578 42,369,147 46,242,432 54,376,341 47,946,013 42,998,410 44,381,345 57,703,208 63,572,217 17,317,357)( 24,297,877)( 31,093,551)( 37,591,344)( 26,978,593)( 29,549,618)( 10,516,825 6,633,883 3,767,596 5,716,063 9,303,513 10,173,946 6,800,532)( 17,663,994)( 27,325,955)( 31,875,281)( 17,675,080)( 19,375,672)( Fiscal Year CHANGE IN NET POSITION 89 2013 2014 2015 2016 General Revenues and Other Changes in Net Position Governmental activities: Taxes Ad valorem 12,359,146$ 12,794,172$ 14,139,037$ 15,131,997$ Sales 9,637,097 10,553,382 10,315,125 10,921,489 Franchise fees 1,681,079 2,073,162 2,263,783 2,250,815 Hotel/motel 503,267 552,570 563,734 544,871 Mixed drink 30,421 39,917 43,656 43,073 Investment income 54,270 43,279 56,820 187,847 Miscellaneous 505,268 180,316 197,881 309,275 Transfers 25,140 50,000)( 42,235)( 29,211 Total Governmental Activities 24,795,688 26,186,798 27,537,801 29,418,578 Business-type activities: Interest and investment earnings 53,089 31,810 47,728 102,642 Miscellaneous 664,521 609,003 344,731 522,221 Transfers 25,140)( 50,000 42,235 29,211)( Total Business-Type Activities 692,470 690,813 434,694 595,652 Total Primary Government 25,488,158 26,877,611 27,972,495 30,014,230 Change in Net Position Governmental activities 4,536,157 9,830,248 10,217,170 10,454,133 Business-type activities 3,235,316 5,151,307 6,548,256 6,078,574 Total Primary Government 7,771,473$ 14,981,555$ 16,765,426$ 16,532,707$ Source: City financial statements Fiscal Year CITY OF SCHERTZ, TEXAS CHANGE IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED) 90 TABLE 2 2017 2018 2019 2020 2021 2022 16,166,006$ 17,018,950$ 19,151,005$ 19,844,912$ 21,463,804$ 22,495,628$ 10,844,503 12,668,555 12,506,879 14,432,152 16,838,731 18,075,733 2,208,373 2,393,182 2,357,150 2,305,225 2,305,108 2,574,041 499,466 520,424 514,679 268,946 518,921 804,132 42,699 43,395 60,518 70,139 68,730 83,391 448,408 909,985 1,470,258 804,674 104,613 709,898 182,754 283,496 984,257 767,779 1,408,270 1,138,775 9,399 19,186 81,525)( - - 316,216)( 30,401,608 33,857,173 36,963,221 38,493,827 42,708,177 45,565,382 211,466 532,367 855,216 431,555 68,354 314,546 475,733 453,374 267,788 706,296 754,268 675,739 9,399)( 19,186)( 81,525 - - 316,216 677,800 966,555 1,204,529 1,137,851 822,622 1,306,501 31,079,408 34,823,728 38,167,750 39,631,678 43,530,799 46,871,883 13,084,251 9,559,296 5,869,670 902,503 15,729,584 16,015,764 11,194,625 7,600,438 4,972,125 6,853,914 10,126,135 11,480,447 24,278,876$ 17,159,734$ 10,841,795$ 7,756,417$ 25,855,719$ 27,496,211$ Fiscal Year CHANGE IN NET POSITION 91 2013 2014 2015 2016 General fund Non-spendable 925,291$ 110,253$ 117,084$ 220,503$ Restricted 1,599,487 1,701,408 1,748,374 1,929,636 Committed - - - - Assigned 456,034 694,916 785,005 752,503 Unassigned 4,206,734 5,587,262 7,280,240 8,509,467 Total general fund 7,187,546$ 8,093,839$ 9,930,703$ 11,412,109$ All other governmental funds Restricted 22,742,237$ 19,261,995$ 21,191,968$ 27,252,908$ Committed 165,000 31,718 - 342,519 Assigned 244,937 31,177 6,657 6,743 Unassigned - - - - Total all other governmental funds 23,152,174$ 19,324,890$ 21,198,625$ 27,602,170$ Source: Balance Sheets - Governmental Funds in City's ACFRs. Fiscal Year CITY OF SCHERTZ, TEXAS FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED) 92 TABLE 3 2017 2018 2019 2020 2021 2022 98,263$ 94,876$ 131,925$ 114,787$ 162,463$ 182,186$ 1,994,905 2,027,125 2,196,037 1,996,357 2,151,411 2,260,350 - - - 687,780 907,676 1,021,594 854,198 3,080,557 5,580,626 1,972,479 1,501,398 1,356,230 9,976,169 12,548,013 9,228,612 12,197,575 11,755,619 12,246,539 12,923,535$ 17,750,571$ 17,137,200$ 16,968,978$ 16,478,567$ 17,066,899$ 35,721,031$ 37,772,240$ 39,009,399$ 32,024,252$ 33,329,710$ 69,222,391$ 454,376 454,376 687,779 4,071,942 7,985,798 5,543,146 - - - - - - - - - 2,071,518)( 675,043)( 648,630)( 36,175,407$ 38,226,616$ 39,697,178$ 34,024,676$ 40,640,465$ 74,116,907$ Fiscal Year 93 2013 2014 2015 2016 Revenues Taxes 24,181,863$ 26,021,730$ 27,348,297$ 28,865,727$ Permits and fees 1,609,954 1,805,047 1,731,302 1,493,336 Service fees 1,739,387 1,763,964 1,797,151 1,789,321 Fines and fees 1,927,744 1,750,311 1,534,588 1,441,474 Intergovernmental 492,332 221,769 393,607 401,494 Other revenue 767,110 671,731 689,805 1,741,436 Total Revenues 30,718,390 32,234,552 33,494,750 35,732,788 Expenditures Current: General government 6,311,276 5,981,439 5,582,441 5,657,998 Public safety 9,113,840 9,409,894 10,158,401 11,048,767 Public environment 951,528 1,012,607 952,663 1,007,326 Parks and recreation 1,412,329 1,338,232 1,658,197 1,528,356 Cultural 840,595 815,691 821,146 869,162 Health 341,961 394,918 404,008 480,175 Administration 1,289,078 2,270,041 2,056,646 2,015,573 Capital outlay 3,277,397 8,000,467 2,314,668 10,192,398 Debt service: Principal 3,217,325 3,695,597 3,918,008 4,040,975 Interest and fiscal charges 2,381,171 2,108,610 2,112,746 1,896,911 Bond issue costs 31,750 165,650 7,992 449,358 Payment to refund agent - - - - Total Expenditures 29,168,250 35,193,146 29,986,916 39,186,999 Excess of Revenues Over (Under) Expenditures 1,550,140 2,958,594)( 3,507,834 3,454,211)( Other Financing Sources (Uses) Bond & debt issuances 1,635,000 8,583,715 245,000 10,750,000 Refunding bond issuance - - - 4,185,000 Premium (discount) on bond issue - 686,137 - 590,432 Payment to refund agent - 9,182,250)( - 4,215,482)( Transfer in 788,084 1,243,833 989,120 863,583 Transfer out 788,084)( 1,293,832)( 1,031,355)( 834,371)( Net Other Financing Sources (Uses)1,635,000 37,603 202,765 11,339,162 Net Change in Fund Balances 3,185,140$ 2,920,991)$( 3,710,599$ 7,884,951$ Debt Service as a Percentage of Noncapital Expenditures 21.6% 21.3% 21.3% 20.5% Source: Statement of Revenues, Expenditures, and Changes in Fund Balance for Governmental Funds. Fiscal Year CITY OF SCHERTZ, TEXAS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED) 94 TABLE 4 2017 2018 2019 2020 2021 2022 29,720,578$ 32,632,702$ 34,590,008$ 36,802,913$ 41,150,087$ 43,905,170$ 2,540,045 2,557,056 1,635,461 1,807,264 1,812,895 2,341,493 2,132,299 2,159,193 2,070,293 2,583,598 2,540,995 2,953,707 1,217,621 1,049,989 953,614 880,657 643,482 754,558 397,073 609,131 1,057,681 951,604 4,582,874 4,247,523 1,897,153 1,761,285 2,454,515 1,572,473 1,512,883 1,848,673 37,904,769 40,769,356 42,761,572 44,598,509 52,243,216 56,051,124 5,394,918 6,327,133 5,881,647 10,364,369 6,580,915 6,515,632 11,870,636 12,728,222 13,985,443 15,366,593 18,107,418 19,098,373 1,128,979 1,136,052 1,112,041 1,270,894 1,382,185 1,766,558 1,885,915 1,697,872 2,393,487 2,102,083 2,534,679 2,659,914 921,870 955,153 1,018,109 1,044,891 1,059,984 1,159,024 672,934 628,054 498,871 589,616 - - 2,912,855 3,015,239 3,795,233 3,353,634 4,459,223 4,597,488 5,492,196 7,708,625 9,083,572 9,276,886 5,215,256 13,096,740 4,473,174 4,744,116 4,565,000 4,929,544 4,955,000 4,805,000 2,113,679 2,099,190 2,069,215 2,136,523 1,801,467 1,779,157 214,280 129,417 189,082 4,200 140,140 558,911 - - 5,489,912 - - - 37,081,436 41,169,073 50,081,612 50,439,233 46,236,267 56,036,797 823,333 399,717)( 7,320,040)( 5,840,724)( 6,006,949 14,327 8,870,000 4,887,829 4,620,000 - 136,535 31,540,000 - 6,035,000 5,225,000 - 7,555,000 4,070,000 381,931 269,212 640,115 - 629,992 3,200,544 - 6,159,623)( - - 8,223,452)( 4,443,881)( 438,803 777,487 120,503 4,500,169 6,395,386 3,339,565 429,404)( 758,302)( 202,028)( 4,500,169)( 6,375,032)( 3,655,781)( 9,261,330 5,051,603 10,403,590 - 118,429 34,050,447 10,084,663$ 4,651,886$ 3,083,550$ 5,840,724)$( 6,125,378$ 34,064,774$ 20.4% 22.2% 17.3% 16.2% 19.9% 17.1% Fiscal Year 95 Fiscal Property Sales & Use Franchise Mixed Year Tax Tax Tax Beverage 2013 12,329,999$ 9,637,097$ 1,681,079$ 30,421$ 2014 12,802,668 10,553,382 2,073,162 39,917 2015 14,161,999 10,315,125 2,263,783 43,553 2016 15,105,480 10,921,489 2,250,815 43,072 2017 16,125,537 10,844,503 2,208,373 42,668 2018 17,007,148 12,668,555 2,393,182 43,384 2019 19,150,782 12,506,879 2,357,150 60,518 2020 19,726,451 14,432,152 2,305,225 70,139 2021 21,418,597 16,838,731 2,305,108 68,730 2022 22,367,873 18,075,733 2,574,041 83,391 CITY OF SCHERTZ, TEXAS GOVERNMENTAL FUNDS TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED) 96 TABLE 5 Hotel Bingo Occupancy Total -$ 503,267$ 24,181,863$ 31 552,570 26,021,730 103 563,734 27,348,297 1 544,870 28,865,727 31 499,466 29,720,578 11 520,424 32,632,704 24 514,679 34,590,032 24 268,946 36,802,937 24 518,921 41,150,111 24 804,132 43,905,194 97 TABLE 6 Fiscal Year Total Water &Water & Water & Sewer Ended Sewer Consumption Sewer Initial Rate Per September 30, (In Gallons)Base Rate 1,000 Gallons 2022 1,700,418,300 39.04 7.79 2021 1,629,336,300 38.15 6.97 2020 1,982,664,200 38.15 6.97 2019 1,622,930,500 37.15 6.84 2018 1,583,312,400 35.61 6.53 2017 1,583,462,300 34.35 6.21 2016 1,509,250,000 30.11 5.73 2015 1,472,948,300 26.54 5.43 2014 1,543,351,600 24.38 5.17 2013 1,550,039,700 22.69 4.84 CITY OF SCHERTZ, TEXAS TOTAL WATER AND SEWER CONSUMPTION AND RATES LAST TEN FISCAL YEARS 98 TABLE 7 TAXPAYERS Total Water Consumption (In Gallons)Rank Percentage of Total City Water Consumption Total Water Consumption (In Gallons)Rank Percentage of Total City Water Consumption City of Selma 231,927,200 1 13.64% City of Cibolo 21,715,000 2 1.28% Crossvine Master Community 15,447,000 3 0.91% WHC Schertz Apts, LLC 11,787,500 4 0.69% Pecan Grove 10,628,900 5 0.63%8,567,600 3 0.55% Sycamore Creek Apartments 8,381,500 6 0.49%6,447,400 5 0.42% Comal ISD Middle School 7,743,900 7 0.46% DDC Ashton, LTD 6,534,100 8 0.38% APG Texas 1LP 5,772,600 9 0.34%6,766,200 4 Sysco 5,059,800 10 0.30%20,104,300 2 Lions Fut Ball Club 25,141,000 1 1.62% Manco Structures 6,304,900 6 0.41% Big Time Management 6,275,400 7 0.40% Legacy Oaks Apartments 4,554,000 8 0.29% City of Schertz (Soccor Field)4,444,100 9 0.29% YMCA/Splash Pad 4,196,400 10 0.27% TOTAL 324,997,500 19.11%92,801,300 4.25% Total City Water Consumption 1,700,418,300 1,550,039,700 2022 2013 CITY OF SCHERTZ, TEXAS PRINCIPAL WATER AND SEWER CONSUMERS LAST TEN FISCAL YEARS 99 TABLE 8 Schertz- Cibolo- Fiscal Basic Debt Universal Comal Year Rate Service Total City ISD ISD 2022 0.3517 0.1604 0.5121 1.3950 1.2920 2021 0.3470 0.1651 0.5121 1.4106 1.2757 2020 0.3496 0.1650 0.5146 1.4200 1.3200 2019 0.3497 0.1649 0.5146 1.4900 1.3200 2018 0.3248 0.1662 0.4910 1.4900 1.3900 2017 0.3168 0.1743 0.4911 1.4700 1.3900 2016 0.3159 0.1752 0.4911 1.4900 1.3900 2015 0.3164 0.1810 0.4974 1.4900 1.3900 2014 0.3010 0.1964 0.4974 1.4900 1.4300 2013 0.2993 0.2006 0.4999 1.4600 1.4300 Community Fiscal Bexar Hospital River College Comal Guadalupe Year County District Authority District County County 2022 0.2763 0.2762 0.0186 0.1492 0.3140 0.3799 2021 0.2624 0.2762 0.0186 0.1492 0.3224 0.3854 2020 0.2774 0.2762 0.0186 0.1492 0.3224 0.3319 2019 0.2774 0.2762 0.0186 0.1492 0.2952 0.3319 2018 0.2928 0.2762 0.0173 0.1492 0.3078 0.3799 2017 0.2928 0.2762 0.0173 0.1492 0.2928 0.3851 2016 0.2929 0.2762 0.0173 0.1492 0.2929 0.3851 2015 0.2929 0.2762 0.0178 0.1492 0.2929 0.3941 2014 0.2782 0.2762 0.0174 0.1492 0.2782 0.3999 2013 0.3052 0.2762 0.0174 0.1416 0.3504 0.4036 Overlapping Counties Bexar City Direct Rates Overlapping School Districts CITY OF SCHERTZ, TEXAS DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS (UNAUDITED) 100 TABLE 9 Percentage Percentage of of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value SYSCO Central Texas 122,083,920$ 1 2.99% Caterpillar Inc.101,547,810 2 2.49%19,098,384 5 0.97% Amazon Com Services Inc 74,629,384 3 1.83% Texas Circle 161 LLC 59,963,917 4 1.47% Rebublic Beverage Company 56,575,395 5 1.39%47,821,320 1 2.43% Colfin 2018-3 Industrial Owner LLC 51,009,011 6 1.25% Sun Life Assurance Company of Canada 28,164,560 7 0.69% DG Industrial Portfolio II Property Owner LP 25,685,820 8 0.63% SA WFR Partners LLC 23,400,000 9 0.57% 1290 Entertainment LLC 23,400,000 10 0.57% SYSCO San Antonio, Inc.44,955,071 2 2.28% Capital Group Companies Inc.41,515,938 3 2.11% San Antonio MTA LP 23,026,185 4 1.17% SC Schertz LLC 16,900,000 6 0.86% Visionworks 14,471,578 7 0.74% Salof Properties II LLC 14,300,000 8 0.73% Wal-Mart Real Estate Business Trust 13,137,327 9 0.67% H.E.Butt Grocery Co.11,682,083 10 0.59% Totals 566,459,817$ 13.87% 246,907,886$ 12.54% Total Taxable Assessed Value 4,084,425,464$ 1,968,808,829$ 2022 2013 CITY OF SCHERTZ, TEXAS PRINCIPAL PROPERTY OF TAX PAYERS CURRENT YEAR AND NINE YEARS AGO 101 TABLE 10 Fiscal Year Taxes Levied Collections In Ended for the % of Subsequent % of September 30,Fiscal Year Amount Levy Years Amount Levy 2022 22,951,478$ 22,775,565$ 99.23%-$ 22,788,154$ 99.29% 2021 22,011,090 21,787,625 98.98%40,262 21,827,887 99.17% 2020 20,854,329 20,758,493 99.54%68,692 20,827,185 99.87% 2019 19,922,568 19,825,244 99.51%85,062 19,910,306 99.94% 2018 18,010,824 17,899,825 99.38%71,342 17,971,167 99.78% 2017 17,356,822 17,241,556 99.34%72,675 17,314,231 99.75% 2016 16,238,180 16,160,248 99.52%57,835 16,218,083 99.88% 2015 14,793,867 14,738,760 99.63%44,730 14,783,490 99.93% 2014 13,383,759 13,297,258 99.35%68,412 13,365,670 99.86% 2013 12,536,540 12,455,336 99.35%71,432 12,526,768 99.92% Collected Within Total Collections Fiscal Year of Levy To Date CITY OF SCHERTZ, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (UNAUDITED) 102 Fiscal Year Taxable Ended Value Residential Commercial September 30,January 1,Property Property 2022 2021 3,618,134,708$ 1,317,486,482$ 2021 2020 3,060,963,760 1,505,592,717 2020 2019 3,004,686,341 1,613,615,732 2019 2018 2,860,333,982 1,401,636,211 2018 2017 2,049,067,806 2,344,365,139 2017 2016 1,895,085,016 2,269,590,522 2016 2015 1,702,601,947 2,087,223,204 2015 2014 1,568,651,309 1,793,803,709 2014 2013 1,445,731,509 1,540,565,195 2013 2012 1,383,423,359 1,396,349,905 *Taxable Assessed Value is before any applicable freeze adjustments. Source: Bexar, Comal and Guadalupe County Appraisal Districts. CITY OF SCHERTZ, TEXAS TAXABLE ASSESSED VALUE LAST TEN FISCAL YEARS (UNAUDITED) 103 TABLE 11 Total Taxable Total Tax-Exempt Other Assessed Direct Property Property Value*Tax Rate (961,929,765)$ 232,196,469$ 4,205,887,894$ 0.5121 (716,028,336) 276,109,231 4,070,815,340 0.5121 (716,028,336) 250,185,870 4,152,459,607 0.5146 (621,773,006) 260,571,835 3,900,769,022 0.5146 (757,265,921) 146,860,809 3,647,504,903 0.4911 (649,173,041) 132,002,406 3,375,850,131 0.4911 (544,328,535) 130,353,515 3,037,267,611 0.4974 (460,271,461) 135,084,054 2,752,562,574 0.4974 (340,747,650) 107,013,520 2,600,365,551 0.4999 (285,245,142) 105,837,429 2,411,270,623 0.4843 104 General Certificates Certificates Fiscal Obligation of Tax Financing Revenue of Year Bonds Obligation Notes Arrangement Bonds Obligation 2022 58,837,302$ 27,869,333$ -$ 109,228$ -$ 24,216,388$ 2021 40,390,000 14,200,000 155,000 136,535 - 10,655,000 2020 44,620,000 15,415,000 345,000 25,695 - 11,200,000 2019 48,320,000 16,235,000 530,000 25,699 - 12,330,000 2018 52,752,896 13,636,966 715,000 34,264 - 13,211,178 2017 56,613,614 9,011,415 1,230,000 25,147 - 8,174,779 2016 56,352,272 4,057,189 1,740,000 58,321 - 8,331,966 2015 53,410,128 277,801 1,210,000 91,495 - 8,946,153 2014 56,487,433 543,934 1,585,000 123,370 - 9,561,204 2013 58,693,750 801,767 2,155,000 22,398 2,215,000 5,048,233 Governmental Activities CITY OF SCHERTZ, TEXAS RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Business-Type Activities 105 TABLE 12 General Total Percent Obligation Financing Tax Primary of Gross Per Bonds Arrangement Notes Government Income Capita 5,111,592$ 327,685$ -$ 116,471,528$ 5.24%2,034$ 2,895,000 475,121 - 68,906,656 4.25%1,619 3,685,000 134,662 150,000 75,575,357 4.50%1,769 4,445,000 199,421 460,000 82,545,120 5.60%1,932 2,127,657 289,553 765,000 83,532,514 5.98%2,028 2,533,626 92,721 1,065,000 75,076,605 6.22%1,996 3,014,595 162,262 1,360,000 75,076,605 6.39%1,979 3,490,564 231,803 1,640,000 69,297,944 5.99%1,830 3,966,533 347,705 65,000 72,680,179 6.35%1,992 2,127,502 - 130,000 71,193,650 6.50%1,982 Business-Type Activities 106 TABLE 13 Less:Percentage of General Certificates Amounts Actual Taxable Fiscal Obligation of Available for Value of Per Year Bonds Obligation Debt Service Total Property Capita 2022 63,948,894$ 52,085,721$ (1,550,080)$ 114,484,535$ 2.72%2,581$ 2021 43,285,000 24,855,000 934,899)( 67,205,101 1.65%1,558 2020 46,223,908 15,801,473 1,051,874)( 60,973,507 1.47%1,481 2019 54,687,960 16,834,029 1,084,908)( 70,437,081 1.81%1,785 2018 54,880,553 13,636,966 809,427)( 67,708,092 1.86%1,785 2017 59,147,240 9,011,415 924,989)( 67,233,666 1.99%1,776 2016 59,366,867 4,057,189 813,306)( 62,610,750 2.06%1,716 2015 56,900,692 277,801 847,178)( 56,331,315 2.05%1,568 2014 60,453,966 543,934 517,199)( 60,480,701 2.33%1,753 2013 60,821,252 801,767 227,674)( 61,395,345 2.55%1,830 General Bonded Debt Outstanding CITY OF SCHERTZ, TEXAS RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS 107 TABLE 14 Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicable*Debt Debt repaid with property taxes: Alamo CCD 538,300,000$ 0.32%1,722,560$ Bexar County 2,006,080,000 0.32%6,419,456 Bexar County Hospital District 874,490,000 0.32%2,798,368 Comal County 122,040,000 4.18%5,101,272 Comal ISD 1,049,362,848 4.42%46,381,838 Guadalupe County 13,145,000 20.10%2,642,145 Schertz-Cibolo-Universal ISD 378,843,715 48.29%182,943,629 Subtotal, Overlapping Debt 248,009,268 City Governmental Activities Direct Debt 86,815,863 TOTAL NET OVERLAPPING DEBT 334,825,131$ NOTES:The overlapping debt was received from the Municipal Advisory Council of Texas.Details regarding the City's outstanding debt can be found in the notes to the basic financial statements. Overlapping debt is the proportionate share of the debts of local jurisdictions located wholly or in part within the limits of the City of Shertz.This schedule is intended to demonstrate the total debt that the City of Shertz property tax payers will be expected to repay.The amount of debt applicable to the City of Schertz is computed by (a)determining what portion of total assessed value of the overlapping jurisdiction lies within the limits of the City and (b)applying this percentage to the total governmental activities debt of the overlapping jurisdiction. CITY OF SCHERTZ, TEXAS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT CURRENT YEAR 108 TABLE 15 Assessed Value, 2021 Tax Roll 4,070,815,340$ Debt Limit -Texas statues do not provide a legal debt limit for cities; however,through accepted practice a practical "economic"debt limit is considered to be 10%of the assessed value. 407,081,534$ Amount of Applicable Debt: General Bonded Debt 86,815,863$ Less Debt Service Net Position 934,899)( 85,880,964 DEBT MARGIN 321,200,570$ Total Net Debt as a Percentage of Debt Margin 26.74% 2019 2020 2021 Assessed Value 3,900,769,022$ 4,152,459,607$ 4,070,815,340$ Debt Limit 390,076,902 415,245,961 407,081,534 Total Net Debt Applicable to Limit 66,019,954 61,318,507 53,946,636 Total Debt Margin 324,056,948$ 353,927,454$ 353,134,898$ 2016 2017 2018 Assessed Value 3,375,850,131$ 3,647,504,903$ 3,783,027,833$ Debt Limit 337,585,013 364,750,490 378,302,783 Total Net Debt Applicable to Limit 61,181,169 65,792,916 66,329,699 Total Debt Margin 276,403,844$ 298,957,574$ 311,973,084$ 2013 2014 2015 Assessed Value 2,600,365,551$ 2,752,562,574$ 3,037,267,611$ Debt Limit 260,036,555 275,256,257 303,726,761 Total Net Debt Applicable to Limit 60,499,568 56,803,499 53,424,303 Total Debt Margin 199,536,987$ 218,452,758$ 250,302,458$ Fiscal Year CITY OF SCHERTZ, TEXAS DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS 109 TABLE 16 Utility Less: Net Fiscal Service Operating Available Year Charges Expenses Revenue Principal Interest Coverage 2022 30,876,559$ 24,362,098$ 6,514,461$ 1,180,000$ 912,019$ 3.11 2021 28,030,614 22,231,246 5,799,368 1,856,953 515,413 2.44 2020 29,735,911 24,032,772 5,703,139 1,961,953 612,643 2.22 2019 27,246,250 22,622,986 4,623,264 1,845,132 561,880 1.92 2018 27,099,237 20,802,263 6,296,974 1,671,134 391,609 3.05 2017 25,390,713 18,697,162 6,693,551 1,554,541 368,390 3.48 2016 22,003,794 17,603,487 4,400,307 1,441,741 417,346 2.37 2015 20,700,369 15,916,597 4,783,772 1,448,407 428,912 2.55 2014 19,147,872 15,246,653 3,901,219 1,010,500 426,100 2.72 2013 17,696,327 14,553,274 3,143,053 728,800 359,680 2.89 Water Revenue Bonds Debt Service NOTE:Details regarding the City's outstanding debt can be found in the notes to the basic financial statements. Operating expenses do not include the depreciation, interest, or amortization expenses. CITY OF SCHERTZ, TEXAS PLEDGED REVENUE COVERAGE LAST TEN FISCAL YEARS 110 TABLE 17 Fiscal Year Population Personal Income Per Capita Personal Income Median Age Education Level in Years of Schooling School Enrollment Unemployment Rate 2022 44,360 1,722,143,920$ 38,822$ 37.9 15.9 15,877 3.3% 2021 43,125 1,641,725,625 38,069 37.6 16.2 15,887 3.9% 2020 42,734 1,680,129,944 39,316 37.4 16.2 15,675 5.1% 2019 41,948 1,473,255,708 35,121 38.0 16.2 15,925 2.7% 2018 41,182 1,396,481,620 33,910 37.3 15.9 15,817 3.2% 2017 39,453 1,266,046,770 32,090 37.2 15.9 15,497 3.8% 2016 37,938 1,175,319,240 30,980 36.9 15.8 15,460 3.4% 2015 37,865 1,157,835,970 30,578 36.1 15.6 15,009 3.2% 2014 36,477 1,144,465,875 31,375 36.9 15.4 14,515 5.1% 2013 35,929 1,095,331,494 30,486 37.1 15.4 14,058 5.5% Sources:Population,personal income,median age and education level informaiton provided by City Economic Development Corporation.School enrollment provided by Schertz-Cibolo-Universal City Independent School District. Unemployment data provided by Texas Workforce Commission. CITY OF SCHERTZ, TEXAS DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS 111 TABLE 18 2022 Employer Employees Percentage of Total City Employment Employees Percentage of Total City Employment Schertz-Cibolo-Universal City ISD 1,890 9.00% 900 5.56% Amazon 1,221 5.90% - - Sysco Central Texas, Inc 843 4.00% 350 4.02% Republic National Distributing Company 685 3.30% 250 1.55% Brandt Companies 652 3.10% 350 2.16% Fed Ex Ground - Doerr Lane, Schertz 600 1.40% 300 - City of Schertz 404 1.90% 350 2.16% FedEx Freight 350 1.70% 175 1.08% Visionworks 350 1.70% 550 3.40% Hollingsworth Logistics Group 275 1.30% - - Wal-mart Stores 400 2.47% H.E.B Grocery Co.350 2.16% CST Distribution 200 1.24% TOTAL 7,270 33.30% 4,175 25.80% Source: City Economic Development Corporation 2013 CITY OF SCHERTZ, TEXAS TOP TEN PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO 112 Function 2013 2014 2015 2016 General Government City Manager 7 6 6 5 Court Support - - - - Municipal Court 6 6 6 6 Customer Relations 5 5 5 5 Planning and Zoning 3 3 3 4 General Services 13 13 13 - City Secretary 2 2 2 2 Public Affairs 4 4 4 4 Records Management 1 1 1 1 Schertz Magazine 2 2 2 2 Engineer 3 3 3 7 GIS 2 2 2 2 Information Technology 6 6 6 6 Human Resources 4 4 4 5 Finance 6 6 8 8 Purchasing 4 3 3 3 Fleet Service 4 4 6 6 Building Maintenance 2 2 3 - Facility Services - - - 16 Public Safety Police 75 75 75 78 Fire 32 33 33 36 Inspections 7 8 9 8 Marshal Services 8 8 8 8 Health Animal Control 6 7 7 8 Environmental Health - - - 3 Parks and Culture Parks 9 9 9 9 Pools - - - - Event Facilities 1 1 1 1 Library 14 14 14 14 Public Environment Streets 14 14 14 14 Public Works Public Works 6 6 6 4 Business Office 10 10 10 10 Water and Sewer 16 16 16 16 Drainage 8 8 8 6 EMS 35 36 37 39 Economic Development 4 4 4 4 TOTAL 318 320 327 339 Full-Time Equivalent Employees as of September 30, CITY OF SCHERTZ, TEXAS FULL-TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS 113 TABLE 19 2017 2018 2019 2020 2021 2022 5 5 5 5 5 5 - - - - - - 6 6 4 4 4 4 5 5 3 3 3 3 4 4 3 3 4 4 - - - - - - 2 2 2 2 2 2 4 5 5 5 4 4 1 - - - - - 2 - - - - - 7 7 7 8 8 10 2 2 2 2 2 3 7 8 8 8 8 9 5 5 5 5 5 5 8 8 7 7 7 7 3 3 3 3 3 3 6 6 7 8 8 9 - - - - - - 16 17 10 10 11 11 81 86 86 87 90 94 39 45 45 46 46 50 8 11 12 12 12 14 5 - - - - - 8 7 7 8 9 9 3 4 4 4 5 6 10 12 11 11 11 15 - - - - - - 1 1 5 5 6 7 14 15 14 14 14 15 14 14 14 17 17 17 4 4 4 4 4 4 10 10 9 9 9 9 16 19 19 19 21 21 6 8 8 8 8 8 41 45 45 45 55 65 4 4 4 4 4 4 346 366 357 365 384 416 Full-Time Equivalent Employees as of September 30, 114 Function 2013 2014 2015 2016 General Government Building Permits Issued 3,054 2,869 3,087 5,919 Schertz Tales Number of Magazines Printed 168,000 180,000 180,000 180,000 Police CFS 19,894 19,067 36,138 39,064 Arrests 800 776 595 603 Traffic Violations 19,335 15,077 12,306 8,960 Accidents 1,960 1,823 2,040 2,119 Fire Number of Rescue/Other Responses 2,046 1,759 2,167 2,327 Number of Fire Responses 108 110 99 67 Number of Inspections 332 252 698 440 Number of Training Classes Conducted 132 125 150 460 Number of Pre-Plan Inspections 729 735 980 867 EMS Requests for Transport 8,391 8,840 9,286 9,723 Actual Transports 5,451 5,713 6,118 6,123 EMT Students 116 87 84 89 Marshal Service Warrants Issued 3,344 2,354 3,798 2,587 Warrants Cleared 4,687 3,781 3,691 3,492 Food Establishment Permits 127 82 135 145 Food Establishment Inspection 281 218 136 153 Foster/Adoption Inspections 24 16 22 21 Parks Facility Reservations 258 301 275 240 Community and Civic Centers Civic Center 444 458 478 483 Community Center Rentals 735 437 455 370 North Community Center Rentals 288 244 209 185 CITY OF SCHERTZ, TEXAS OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Fiscal Year 115 TABLE 20 2017 2018 2019 2020 2021 2022 4,800 5,251 4,748 2,993 4,474 4,000 180,000 180,000 180,000 187,500 189,700 191,700 34,428 45,190 41,327 57,149 29,007 32,170 423 624 603 527 416 326 8,001 11,359 12,541 8,326 6,980 6,504 2,057 2,244 2,304 1,752 2,076 2,341 2,758 3,055 3,804 3,953 4,837 4,895 86 161 100 108 205 232 519 562 528 500 548 547 340 600 804 763 770 632 922 788 865 814 848 324 9,956 10,059 10,759 10,713 12,251 13,520 6,201 6,165 6,738 6,549 7,444 8,332 90 90 90 84 123 154 2,816 1,598 2,036 1,738 2,095 1,708 2,822 2,022 1,834 664 1,451 1,373 201 181 55 189 142 173 13 211 96 209 172 142 21 18 8 10 12 5 251 248 241 75 237 294 590 516 441 293 253 354 455 381 326 193 291 299 230 235 188 92 153 197 Fiscal Year 116 Function 2013 2014 2015 2016 Animal Services Number of Animals Handled 1,326 1,218 1,304 1,313 Number of Adoptions 362 309 357 410 Number of Return to Owners 231 222 213 205 Number of Transfers 301 316 296 316 Library Annual Circulation 404,691 395,998 394,766 399,622 Library Visits 254,633 253,237 259,413 255,109 Library Program Attendance 12,581 15,048 13,825 15,282 Registered Users 31,658 30,759 31,138 30,702 Water New Connections 168 235 369 213 Water Main Breaks 38 45 45 45 Total Consumption 15,500,413 15,497,071 14,757,134 16,097,931 (Thousands of Gallons) Daily Average Consumption (Thousands of Gallons)42,466 42,458 40,431 43,942 Peak Daily Consumption (Thousands of Gallons)9,483 10,089 8,385 10,985 Total Customers 12,757 13,324 13,570 13,877 Average Use Per Connection 5,905 5,467 5,135 5,352 Sewer Total Customers 11,456 11,578 11,413 12,282 Facilities Maintenance Number of Buildings Maintained 19 19 21 21 Square Footage 166,591 166,591 234,202 234,202 Fiscal YearFiscal Year CITY OF SCHERTZ, TEXAS OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 117 TABLE 20 2017 2018 2019 2020 2021 2022 1,283 926 1,157 1,015 1,070 1,125 348 319 366 450 329 371 228 218 233 335 284 252 326 297 227 188 152 205 385,206 414,790 447,379 254,643 281,659 359,272 235,428 258,695 237,821 102,297 91,291 157,428 16,814 16,945 18,412 6,524 2,541 11,357 31,432 30,806 33,104 31,296 30,291 29,612 303 235 300 357 342 291 45 50 52 65 38 64 15,222,373 15,833,124 17,602,330 1,976,687 1,617,120 21,606,589 41,705 43,378 48,225 54,155 59,377 5,919 11,000 9,083 11,094 14,011 9,160 8,429 14,124 14,678 16,434 13,683 15,861 16,228 5,244 5,294 4,587 5,600 101,955 133,143 12,398 12,866 12,853 13,112 14,128 14,295 21 25 26 27 26 28 234,202 245,218 257,218 301,656 257,218 257,218 Fiscal Year 118 Function 2013 2014 2015 2016 Police Stations 1 1 11 Patrol Units 42 42 48 50 Fire Stations 2 2 22 Fire Vehicles 13 15 16 16 EMS Ambulances 7 7 99 Marshal Service Vehicles 7 7 77 Streets Streets, Paved (Miles) 137 141 149 153 Streets, Unpaved (Miles) 5 5 55 Parks and Recreation Parks - Developed 13 13 14 15 Parks - Undeveloped 8 8 910 Playground 16 16 18 19 Swimming Pools 2 2 22 Baby Pools 2 2 22 Baseball/Softball Diamonds 12 12 15 15 Soccer Fields 12 12 12 12 Community Centers 4 4 44 Animal Control Control Vehicle 3 3 34 Library Facility 1 1 11 Volumes in Collection 86,221 100,478 113,085 97,412 Water Number of Pump Stations 5 5 55 Water Mains (Miles) 197 199 210 211 Sewer Sanitary Sewers (Miles) 87 90 96 98 Storm Sewers (Miles) 11 11 12 12 Facilities Maintenance Vehicles 5 5 66 Fleet Generators 3 3 44 Vehicles & Equipment N/A N/A N/A N/A CITY OF SCHERTZ, TEXAS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Fiscal Year 119 TABLE 21 2017 2018 2019 2020 2021 2022 111111 64 69 68 72 66 76 233333 16 18 19 20 20 24 88991011 777773 159 153 165.4 165 167.5 172 555555 20 21 21 21 21 21 444455 19 19 20 21 21 36 444443 222221 15 15 15 15 15 15 12 12 12 12 12 12 444444 344668 111111 107,382 110,266 150,972 139,447 149,965 155,715 555676 221 225 228 228.5 231.4 236 110 113 116 116.2 119.5 124 12 13.6 13.8 13.8 14.7 16 6111110 810 4710788 N/A 384 352 341 376 373 Fiscal Year 120 CITY OF SCHERTZ, TEXAS SINGLE AUDIT REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2022 CITY OF SCHERTZ, TEXAS TABLE OF CONTENTS SEPTEMBER 30, 2022 Page Number Independent Auditor’s Report on Compliance for Each Major Federal Program, and Report on Internal Control Over Compliance in Accordance with the Uniform Guidance ................................................. 1 - 3 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ....................................................... 4 - 5 Schedule of Expenditures of Federal Awards ................................................................. 6 Notes to Schedule of Expenditure of Federal Awards ...................................................... 7 Schedule of Findings and Questioned Costs ................................................................... 8 Summary Schedule of Prior Audit Findings .................................................................... 9 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE Honorable Mayor and Members of City Council City of Schertz, Texas Report on Compliance for Each Major Federal Program We have audited the City of Schertz, Texas’ (the “City”) compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended September 30, 2022. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2022. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opi nion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s federal programs. 1 2 Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonabl e assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompl iance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Ci ty’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significan t deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requ irement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. 3 Report on Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Schertz, Texas, as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated _____, 2023, which contained unmodified opinions on those financial statements. Our audit was conduct ed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and is not a required part of the basic financial statements. Such information is the resp onsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the fina ncial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly stated in all material respects in relation to the basic fin ancial statements as a whole. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Waco, Texas _____, 2023 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and Members of City Council City of Schertz, Texas We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Schertz, Texas (the “City”) as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated _____, 2023. Our report includes a reference to other auditors who audited the financial statements of Schertz-Seguin Local Government Corporation and the Cibolo Valley Local Government Corporation, as described in our report on City of Schertz, Texas’ financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for determining audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 4 5 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatements, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such a n opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Waco, Texas _____, 2023 Federal Grantor/Assistance Pass-Through Pass-Through Grantor/Listing Entity Identifying Federal Program Title Number Number Expenditures U.S. Department of Justice Direct Programs: Equitable Sharing Agreement and Certification 16.922 N/A 9,273 Total Direct Programs 9,273 Total U.S. Department of Justice 9,273 U.S. Department of Treasury Direct Programs: Equitable Sharing Agreement and Certification 21.016 N/A 77,996 Total Direct Programs 77,996 Passed through the Texas Division of Emergency Management: COVID-19 - State and Local Fiscal Recovery Fund (ARP Act)21.027 TX2511 2,422,438 Total Texas Division of Emergency Management 2,422,438 Total U.S. Department of Treasury 2,500,434 National Endowment for the Humanities (NEH) Passed through the Texas State Library and Archives Commission: Grants to States - Interlibrary Loan Program (ILL)45.310 902524 8,094 Total Texas State Library and Archives Commission 8,094 Total National Endowment for the Humanities (NEH)8,094 U.S. Department of Health and Human Services Passed through the Texas Health and Human Services Commission: Medicaid Cluster - Ambulance Services - Uncompensated Care Costs 93.778 N/A 55,835 Total Texas Health and Human Services Commission 55,835 Total U.S. Health and Human Services Commission 55,835 U.S. Department of Homeland Security Passed through Texas Division of Emergency Management: Disaster Grants - Public Assistance 97.036 N/A 561,399 Total Texas Division of Emergency Management 561,399 Total U.S. Department of Homeland Security 561,399 Total Expenditures of Federal Awards 3,135,035$ CITY OF SCHERTZ, TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 The accompanying notes are an integral part of this schedule.6 7 CITY OF SCHERTZ, TEXAS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 1. GENERAL The accompanying schedule of expenditures of federal awards presents the activity of all applicable federal awards of the City of Schertz, Texas. The City’s reporting entity is defined in Note I to the City’s basic financial statements. Federal awards received directly from federal and state agencies as well as federal awards passed through other government agencies are included in the respective schedule. 2. BASIS OF ACCOUNTING The accompanying schedule of expenditures of federal awards is presented using modified accrual basis of accounting, which is described in Note I to the City’s basic financial statements. 3. RELATIONSHIP TO FEDERAL FINANCIAL REPORTS Grant expenditure reports as of September 30, 2022, which have been submitted to grantor agencies will, in some cases, differ slightly from amounts disclosed herein. The reports prepared for grantor agencies are typically prepared at a later date and often reflect refined estimates of year-end accruals. The reports will agree at termination of the grant as the discrepancies noted are timing differences. 4. INDIRECT COSTS The City has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, Section 414. 5. PASS-THROUGH EXPENDITURES None of the federal programs expended by the City were passed through to subrecipients. Summary of the Auditor's Results Financial Statements: Type of auditor's report issued:Unmodified Internal control over financial reporting: Material weakness(es) identified?No Significant deficiency(ies) identified that are not considered a material weakness?None reported Noncompliance material to financial statements noted?No Federal Awards: Internal control over major programs: Material weakness(es) identified?No Significant deficiency(ies) identified that are not considered a material weakness?None reported Type of auditor's report issued on compliance for major federal programs Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)?None Identification of major federal programs: Assistance Listing Number(s):Name of Federal Program or Cluster: 21.027 COVID-19 - State and Local Fiscal Recovery Fund (ARP Act) The dollar threshold used to distinguish between type A and type B federal programs.$750,000 Auditee qualified as low-risk auditee?Yes Findings Relating to the Financial Statements Which are Required to be Reported in Accordance With Generally Accepted Government Auditing Standards None reported Findings and Questioned Costs for Federal Awards None reported CITY OF SCHERTZ, TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2022 8 9 CITY OF SCHERTZ, TEXAS SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED SEPTEMBER 30, 2022 None 2 Honorable Mayor and Members of the City Council City of Schertz, Texas We have audited the financial statements of the City of Schertz, Texas (the “City”) as of and for the year ended September 30, 2022 and have issued our report thereon dated _____, 2023. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated December 12, 2022, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of int ernal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to comm unicate to you. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, and, as appropriate, our firm have complied with all relevant ethical requirements regarding independence. As a part of the engagement we assisted in preparing the financial statements , related notes to the financial statements, and the schedule of expenditures of federal awards of the City in conformity with U.S. generally accepted accounting principles and Uniform Guidance. These nonaudit services do not constitute an audit under Government Auditing Standards and such services were not conducted in accordance with Government Auditing Standards. 2 In order to reduce threats to our independence caused by these nonattest services to an acceptable level, we applied certain safeguards. These safeguards include a concurring review, which is a review of the financial statements and key audit areas which is performed by an individual who has adequate experience in audits of local governments, but who was not involved in this audit engagement. The concurring reviewer serves as an evaluator of the performance of the engagement team and the nonattest services provided. In order to ensure we maintain our independence for performing these nonaudit services certain safeguards were applied to this engagement. Management assumed responsibility for the financial statements, related notes to the financial statements, and the schedule of expenditures of federal awards, and any other nonaudit services we provided. Management acknowledged in the management representation letter our assistance with the preparation of the financial statements, related notes to the financial statements, and the schedule of expenditures of federal awards, and that these items were reviewed and approved prior to their issuance and accepted responsibility for them. Further, the nonaudit services were overseen by an individual within management that has the suitable skill, knowledge, or experience; evaluated the adequacy and results of the services; and accepted responsibility for them. Significant Risks Identified We have identified the following significant risks during our audit process, which required special audit consideration: Significant Risk Identified Reasoning for Special Audit Consideration 1. Management override of controls Inherent fraud risk which is a risk for all entities in accordance with generally accepted auditing standards. Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note I to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during the year. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments. The most sensitive accounting estimates affecting the financial statements are: Management’s estimate of the useful lives of capital assets is based on the expected lifespan of the asset in accordance with standard guidelines. We evaluated the key factors and assumptions used to devel op the estimate of useful lives in determining that it is reasonable in relation to the financial statements taken as a whole and in relation to the applicable opinion units. Management’s estimate of the allowance for uncollectible court fines and delinquent property taxes receivable are based on historical collections. We evaluated the key factors and assumptions used to develop the allowance for uncollectible court fines in determining that it is reasonable in relation to the financial statements taken as a whole and in relation to the applicable opinion units. 3 Management’s estimate of the allowance for uncollectible EMS receivable is based on historical collections. We evaluated the key factors and assumptions used to develop the allowance for EMS revenues in determining that it is reasonable in relation to the financial statements taken as a whole and in relation to the applicable opinion units. Management’s estimate of the net pension and total OPEB liabilities and related expenses are based on actuarial assumptions which are determined by the demographics of the plan and future projections that the actuarial makes based on historical information of the plan and the investment market. We evaluated the key factors and assumptions used to develop th e net pension and total OPEB liabilities and pension and OPEB expenses and determined that they are reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to the net pen sion and OPEB liabilities. The disclosures in the financial statements are neutral, consistent, and clear. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the perfor mance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all identified misstatements. In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the fi nancial statements taken as a whole or applicable opinion units. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit. Representations Requested from Management We have requested certain written representations from management, which are included in the management representation letter dated _____, 2023. Management’s Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our k nowledge, there were no consultations with other accountants regarding auditing and accounting matters. 4 Other Significant Matters, Findings, or Issues In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors. New Accounting Pronouncements Significant new accounting standards issued by the Governmental Accounting Standards Board (GASB) not yet implemented by the City include the following: Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements – The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. GASB 94 will become effective for reporting periods beginning after June 15, 2022, and the impact has not yet been determined. Statement No. 96, Subscription-Based Information Technology Arrangements – This Statement provides guidance on the accounting and financial reporting for subscription -based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended. This Statement will become effective for reporting periods beginning after June 15, 2022, and th e impact has not yet been determined. GASB Statement No. 100, Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62 – The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. This Statement will become effective for reporting periods beginning after June 15, 2023, and the impact has not yet been determined. GASB Statement No. 101, Compensated Absences – The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. This Statement will become effective for reporting periods beginning after December 15, 2023, and the impact has not yet been determined. Other Information Included in the Annual Report Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City’s Annual Comprehensive Financial Report, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we have read the other information and considered whether a material inconsistency exists between the other information and the financial statements, or if the other information otherwise appears to be materially misstated. Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or man ner of its presentation, appearing in the financial statements. 5 Restriction on Use This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties. Waco, Texas _____, 2023 Agenda No. 11.   CITY COUNCIL MEMORANDUM    City Council Meeting:February 28, 2023 Department:Police Department Subject:Annual Racial Profiling Report PD - 2022 BACKGROUND Schertz PD is required by law to submit an annual Racial Profiling Report that collects incident based data related to self-initiated traffic stops. GOAL Data analysis, audits, findings, and recommendations to assure adherence to statutory requirements in mitigating racial profiling in policing. COMMUNITY BENEFIT Provides transparency and accountability to community members in addressing racial profiling practices within the Schertz PD.  SUMMARY OF RECOMMENDED ACTION No recommendation necessary. RECOMMENDATION Continued efforts and due diligence to exceed statutory requirements in identifying and addressing, if necessary, racial profiling practices of the Schertz PD. Attachments SZPD TCOLE Annual Racial Profiling Report  Brazos Data Annual Racial Profiling Report2022  SZPD Racial Profiling Report  Racial Profiling Report | Full report Agency Name: Reporting Date: TCOLE Agency Number: Chief Administrator: Agency Contact Information: Phone: Email: Mailing Address: This Agency filed a full report has adopted a detailed written policy on racial profiling. Our policy: 1) clearly defines acts constituting racial profiling; 2) strictly prohibits peace officers employed by the from engaging in racial profiling; 3) implements a process by which an individual may file a complaint with the if the individual believes that a peace officer employed by the has engaged in racial profiling with respect to the individual; 4) provides public education relating to the agency's complaint process; 5) requires appropriate corrective action to be taken against a peace officer employed by the who, after an investigation, is shown to have engaged in racial profiling in violation of the policy; 6) requires collection of information relating to motor vehicle stops in which a warning or citation is issued and to arrests made as a result of those stops, including information relating to: a. the race or ethnicity of the individual detained; b. whether a search was conducted and, if so, whether the individual detained consented to the search; c. whether the peace officer knew the race or ethnicity of the individual detained before detaining that individual; d. whether the peace officer used physical force that resulted in bodily injury during the stop; e. the location of the stop; f. the reason for the stop. 7) requires the chief administrator of the agency, regardless of whether the administrator is elected, employed, or appointed, to submit an annual report of the information collected under Subdivision (6) to: a. the Commission on Law Enforcement; and b. the governing body of each county or municipality served by the agency, if the agency is an agency of a county, municipality, or other political subdivision of the state. The has satisfied the statutory data audit requirements as prescribed in Article 2.133(c), Code of Criminal Procedure during the reporting period. Executed by: Chief Administrator Date: Total stops: Motor Vehicle Racial Profiling Information Street address or approximate location of the stop City street: US highway: State highway: County road: Private property or other: Was race or ethnicity known prior to stop? Yes: No: Race or ethnicity Alaska Native/American Indian: Asian/Pacific Islander: Black: White: Hispanic/Latino: Gender Female: Total Alaska Native/American Indian Asian/Pacific Islander Black White Male: Total Hispanic/Latino Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Reason for stop? Violation of law: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Pre existing knowledge:_ Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Moving traffic violation: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Vehicle traffic violation: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Was a search conducted? Yes: Total Alaska Native/American Indian Asian/Pacific Islander Black No: White Hispanic/Latino Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Reason for Search? Consent: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Contraband: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Probable cause: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Inventory: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Incident to arrest: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Was Contraband discovered? Yes: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Did the finding result in arrest (total should equal previous column)? Yes No Yes No Yes No Yes No Yes No No: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Description of contraband Drugs: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Currency: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Weapons: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Alcohol: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Stolen property: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Other: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Result of the stop Verbal warning: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Written warning: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Citation: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Written warning and arrest: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Citation and arrest: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Arrest: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Arrest based on Violation of Penal Code: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Violation of Traffic Law: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Violation of City Ordinance: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Outstanding Warrant: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Was physical force resulting in bodily injury used during stop Yes: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Resulting in Bodily Injury to Suspect: ________________ Resulting in Bodily Injury to Officer: ________________ Resulting in Bodily Injury to Both: ________________ No: Total Alaska Native/American Indian Asian/Pacific Islander Black White Hispanic/Latino Number of complaints of racial profiling Total Resulted in disciplinary action Did not result in disciplinary action Submitted electronically to the The Texas Commission on Law Enforcement Schertz City Council February 14, 2023 Racial Profiling Report 2022 1 Jim Lowery Chief of Police •Define racial profiling •National Dialogue •State of Texas Legislation •Policy and Training •Data Collection and Reporting . 2 OVERVIEW “Racial profiling” refers to the discriminatory targeting of individuals for a suspicion of crime based on the individual's ethnicity, race, religion, or national origin. “Criminal profiling” is based on evidence gathered from previous crimes, victim or witness testimony that develops a motive or character assessment. 3 RACIAL PROFILING VS. CRIMINAL PROFILING ILLEGAL LEGAL 4 UNDERSTANDING RACIAL PROFILING •In the 1990’s national dialogue was elevated on racial profiling. •The DOJ Civil Rights Division began to investigate allegations of racial profiling in police departments. •The DOJ COPS Office developed a resource guide for police departments on assessing racial profiling data and offered comprehensive strategies to reduce racial profiling 5 DOJ COPS OFFICE STRATEGIES •Diverse recruitment and selection •Training and education for police and community •Minority community engagement initiatives •Accountability and supervision •Collecting and analyzing traffic stop data •Using technology to reduce racial profiling and increase officer safety 6 TEXAS STATE LEGISLATION •In 2001 Senate Bill 1074 required Texas police departments to collect analyze, and report motor vehicle related contact data •In 2009 House Bill 3389 modified the law amending definitions within the law •In 2017 House Bill 3051 changed racial designations and Senate Bill 1849 -Sandra Bland Law expanded data collection requirements 7 SZPD POLICY AND TRAINING •As a police department we are committed to constitutional policing and protecting the civil rights of all people •Police officers are prohibited from engaging in racial profiling in any police contact, seizure or forfeiture •Police officers attend mandated TCOLE training that includes Racial Profiling and Cultural Diversity •Officers are required to enter disposition codes for all traffic stops •Shift supervisors are required to conduct monthly audit reviews of officers Digital Video Recorder/Body Warn Camera •Number of COMPLAINTS of RACIAL PROFILING CY 2022 –“0” 8 SZPD 2022 RACIAL PROFILING REPORT •Police officers made 5,965 traffic stops •2021 –4,836, 2020 –6,845, and 2019 –9,485 •In 98.9% of traffic stops, officers did not know the race of the driver prior to the stop Race/Ethnicity All T-Stops White 3,208 (53.8%) Hispanic 1,630 (27.3%) Black 986 (16.5%) Asian / Pacific Islander 113 (1.9%) Alaska Native / American Indian 28 (0.5%) Race/Ethnicity Citation Caucasian 1,513 (47.2%) Hispanic 744 (45.6%) Black 445 (45.1%) Asian / Pacific Islander 56 (49.6%) Alaska Native / American Indian 13 (46.4%) 9 SZPD 2022 RACIAL PROFILING REPORT Physical Force Used Resulting in Bodily Injury During the Stop YES No Alaskan Native / American Indian 0 28 Asian / Pacific Islander 0 113 Black 0 986 White 2 3,208 Hispanic / Latino 0 1,630 TOTAL 2 5,965 10 Discussion Agenda No. 12.   CITY COUNCIL MEMORANDUM    City Council Meeting:February 28, 2023 Department:Planning & Community Development Subject: Ordinance No. 23-S-01 - Conduct a public hearing and consideration and/or action on a request to rezone approximately 12.5 acres of land from Planned Development District (PDD) to Planned Development District (PDD), generally located approximately 1,500 feet southwest of the intersection between Schertz Parkway and Maske Road, City of Schertz, Guadalupe County, Texas, also known as the Windy Meadows Subdivision Unit 4. First Reading (B. James, L. Wood, E. Delgado) BACKGROUND The applicant is proposing to rezone approximately 12.5 acres of land from Planned Development District (PDD) to Planned Development District (PDD). The subject property is platted as the Windy Meadows Subdivision Unit 4 and has recently gone through the replat process and is awaiting recordation. The property is currently developed with existing manufactured homes.  The subject property was zoned Planned Development District in April of 2020. The current proposed zoning is to alter the existing PDD Design Standards due to site constraints based on changes in the field. Specifically, the modifications to the Design Standards are in relation to the setback from home to the perimeter property fencing.  Public Notice: Twenty (20) public hearing notices were mailed to surrounding property owners on January13, 2023, at the time of this report, staff has received zero (0) responses to the public hearing notices. Additionally, on January 13, 2023 a Public Hearing notice sign was placed on the property. A public hearing notice was published in the "San Antonio Express" on February 8, 2023 prior to the City Council public hearing.  Proposed Zoning:  Since 2020 when the original zone change ordinance was approved, the subject property has gone through the replat process including installation of public infrastructure, and required screening and landscaping.  Ordinance 20-S-01 stipulated that a screening fence was to be installed along Maske Road and that homes would be installed a minimum of ten feet (10') from perimeter property fencing. However, during the installation of the screening fence along Maske Road it was determined that if the fence was installed in the location previously determined during the PDD associated with Ord. 20-S-01 that it would create a safety issue for traffic along Maske Road. To try and prevent any traffic or safety concerns the fence was constructed ten feet (10') into the subject property away from Maske Road.  Due to the fence location being altered, there are site constraints in relation to placement of homes and the minimum setback requirement of ten feet (10') from the fence established with the existing PDD Design Standards.   The proposed zone change from Planned Development District (PDD) to Planned Development District (PDD) is to propose a modification to the PDD Design Standards to address this issue. The proposed PDD Design Standards state "Each dwelling unit shall have a minimum setback of seven and a half feet (7.5') from perimeter property fencing." The proposed reduction of setback from ten feet (10') to seven and a half feet (7.5') would allow for a full size manufactured home, which is typically seventy-six feet (76'), to be placed along the Maske Road home pads and still meet the designated front setback.  The current Ordinance 20-S-01 stipulates any significant future changes from the established Dimensional Requirements for the approved PDD will cause the plan to be resubmitted for approval by the Planning & Zoning Commission and the City Council. Due to the proposed request being to modify the setback which falls under the established dimensional requirements, in order to request this PDD Design Standard modification the applicant was required to submit for a zone change application.  The PDD Design Standards proposes modifications to the following two sections:    Section C of Minimum Site Requirements; which was modified to state "Each dwelling unit shall have a minimum setback of seven and a half feet (7.5') from perimeter property fencing".  Section F (2) Street Screening (Maske Road); which was modified to indicate the screening fence along Mask Road is ten feet (10') offset from the right-of-way.  There are no proposed changes to the density / number of homes, front or side setbacks, or street buffer along the future Live Oak.  GOAL The project goal is to rezone approximately 12.5 acres of land, generally located approximately 1,500 feet southwest of the intersection between Schertz Parkway and Maske Road, also known as the Windy Meadows Subdivision Unit 4, from Planned Development District (PDD) to Planned Development District (PDD) in order to modify the setback requirements adjacent to Maske Road.  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 The Comprehensive Plan, through the Future Land Use Plan, identifies the subject property as both Manufactured Housing and Single Family Residential. The proposed zone change to Planned Development District (PDD) with a base zoning of Manufactured Home Park (MHP) is compatible with the future land use designation and is therefore in conformance with the goals of the Comprehensive Plan. The proposed zone change should have minimal impact on existing infrastructure, public facilities and services and the existing and potential adjacent land uses as the proposed stays consistent as to what was previously approved and developed on the site.  The proposed zone change to modify the setback along the perimeter property fence adjacent to Maske Road should have no adverse impact on the existing and potential adjacent land uses. The proposed zone change will allow for a modification to the PDD Design Standards which will allow full size manufactured homes to be placed along Maske Road while still complying with the front and proposed rear setbacks. The change in the location of the screening fence along Maske Road was completed in an effort to decrease safety concerns, which ultimately caused site constraints for the home pads along Maske Road. The proposed PDD Design Standards modification would address those constraints and would allow the installation of manufactured homes as previously approved.    RECOMMENDATION Staff Recommendation:  The proposed PDD Design Standards and associated zone change have been reviewed by the Planning, Engineering, Public Works and Fire Department with no objections. Staff recommends approval of the zone change as submitted.   Planning and Zoning Commission Recommendation: The Schertz Planning and Zoning Commission met on January 25, 2023 and voted to recommend that City Council approve the proposed zone change by a unanimous vote.    Attachments Ordinance No. 23-S-01  Exhibit A- Metes and Bounds  Exhibit B- Zoning Exhibit  Exhibit C- PDD Design Standards  Letter of Intent From Property Owner  Aerial Exhibit  Public Hearing Notice Map  City Council Presentation Slides  ORDINANCE NO. 23-S-01 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE OFFICIAL ZONING MAP BY REZONING APPROXIMATELY 12.5 ACRES OF LAND TO PLANNED DEVELOPMENT DISTRICT (PDD), GENERALLY LOCATED APPROXIMATELY 1,500 FEET SOUTHWEST OF THE INTERSECTION BETWEEN SCHERTZ PARKWAY AND MASKE ROAD, CITY OF SCHERTZ, GUADALUPE COUNTY, TEXAS, ALSO KNOWN AS THE WINDY MEADOWS SUBDIVISION UNIT4 WHEREAS, an application to rezone approximately 12.5 acres of land generally located approximately 1,500 feet southwest of the intersection between Schertz Parkway and Maske Road, and more specifically described in the Exhibit A and Exhibit B 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 zone change (the “Criteria”); and WHEREAS, on January 25, 2023, the Planning and Zoning Commission conducted a public hearing and, after considering the Criteria, made a recommendation to City Council to approve the requested rezoning according to the development standards set forth in Exhibit C attached herein (the “Development Standards”); and WHEREAS, on February 28, 2023, 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 and Exhibit B, is hereby zoned Planned Development District (PDD) 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 to 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, including 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 ON FIRST READING, the 28th day of February 2023. PASSED, APPROVED and ADOPTED ON SECOND READING, the 7th day of March, 2023. CITY OF SCHERTZ, TEXAS _____________________________ Ralph Gutierrez, Mayor ATTEST: Sheila Edmondson, City Secretary (city seal) 1 | Page Donnie Boerner Surveying Company L.P. 228 Holiday Road ♦ Comfort, Texas 78013 Phone: 830-377-2492 FIRM NO. 10193963 Field Notes for a 12.489 Acre Tract of Land Being a 12.489 acre tract out of the T. Herrera Survey No. 68, Abstract No. 153, City of Schertz, Guadalupe County, Texas and being all of WINDY MEADOW UNIT 4 according to plat thereof recorded in Volume 5, Page 320B, Guadalupe County Plat Records, said 12.489 acre tract being more particularly described by metes and bounds as follows: Beginning at a ½” steel rod found for the east corner of the herein described tract, the east corner of the above referenced WINDY MEADOW UNIT 4; Thence, with the southeast line of WINDY MEADOW UNIT 4, South 60 degrees 00 minutes 00 seconds West, a distance of 464.98 feet to a point being the south corner of WINDY MEADOW UNIT 4; Thence, with the southwest line of WINDY MEADOW UNIT 4, North 76 degrees 54 minutes 16 seconds West, a distance of 970.40 feet to a point being the west corner of WINDY MEADOW UNIT 4 and being in the southeast line of Maske Road as shown on plat recorded in Volume 5, Page 320B, Guadalupe County Plat Records; Thence, with the northwest line of WINDY MEADOW UNIT 4, the southeast line of Maske Road, North 59 degrees 55 minutes 40 seconds East, a distance of 1173.55 feet to a point being the north corner of WINDY MEADOW UNIT 4; Thence, departing the southeast line of Maske Road, with the northeast line of WINDY MEADOW UNIT 4, South 30 degrees 00 minutes 09 seconds East, a distance of 664.47 feet to the Place of Beginning and containing 12.489 acres of land. Note: This document was prepared under 22 TAC §663.21, does not reflect the results of an on the ground survey, and is not to be used to convey or establish interests in real property except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. _____________________________________ Donald Dean Boerner Registered Professional Land Surveyor No. 5207 1 2 3 4 5 6 7 8 10 20 21 9 1112 13 14 15 16 17 18 19 725 725 725 725725 725 725 730 735 740 720 715 715 720 725 710 1 OF 1 LOCATION MAP 1" : 1000' SHEET NO. EN G I N E E R S , C O N S U L T A N T S , L A N D P L A N N E R S CI V I L T E C H , P L L C . CT (2 1 0 ) 3 6 5 - 5 0 2 9 P. O . B O X 2 2 0 3 B O E R N E , T X . 7 8 0 0 6 Fi r m N o . 1 3 7 1 1 OWNER: PROPERTIES WITHIN 200 FEET NOTIFICATION AREA PROPERTY OWNERS NAME PROPERTY ID#ADDRESS ADDRESS TYPE ZONING SUBDIVISION NAME RECORDING INFORMATION 1 ARMANDO AND KATRINA MIDDLETON MARTINEZ 115100 2415 BETTY JOE LN SCHERTZ TX 78154 SINGLE FAMILY R-2 NULL DEED V 1975 PG 148, DEED # 04488 2 BETTY JOE BOGGESS ESTATE 64578 2550 BETTY JOE SCHERTZ TX 78154 RURAL R-2 NULL OT V 1080 PG 400, DEED # 0 3 JON PENFIELD CHALKER 64593 MASKE RD SCHERTZ TX 78154 RURAL R-2 NULL OD V 2019 PG 99021700, DEED # 2019-99021700 4 JONAS WOODS HOMEOWNERS ASSOCIATION 111376 SCHERTZ TX 78154 SINGLE FAMILY GH JONAS WOODS UNIT 4 OT V 1527 PG 172, DEED # 0 5 NICHOLAS M & KARA M BRUMGARD 111378 2305 HAWTHORNE SCHERTZ TX 78154 SINGLE FAMILY GH JONAS WOODS UNIT 4 DEED V 2016 PG 10654, DEED # 2016010654 6 BRIAN K MOORE SR & MEGELA E CAMPBELL REVOCABLE TRUST 111377 2301 HAWTHORNE PASS SCHERTZ TX 78154 SINGLE FAMILY GH JONAS WOODS UNIT 4 DEED V 3099 PG 902, DEED # 12-004183 7 KYLE DAVID & LORI ANN PEVOTO 111375 500 GINSBERG DRIVE SCHERTZ TX 78154 SINGLE FAMILY GH JONAS WOODS UNIT 4 DEED V 2016 PG 18460, DEED # 2016-018460 8 JOHN HERINGER 111374 504 GINSBERG DRIVE SCHERTZ TX 78154 SINGLE FAMILY GH JONAS WOODS UNIT 4 DEED V 2017 PG 7723, DEED # 2017007723 9 DARRELL K JOHNSON 111373 508 GINSBERG DRIVE SCHERTZ TX 78154 SINGLE FAMILY GH JONAS WOODS UNIT 4 DEED V 2007 PG 226, DEED # 9856 10 ROSEMARIE ACKERMANN 64549 MASKE RD SCHERTZ TX 78154 RURAL R-2 NULL DEED V 3008 PG 495, DEED # 11-010969 11 MHI PARTNERSHIP LTD 170258 515 BINDSEIL GROVE TX SINGLE FAMILY R-7 BINDSEIL FARMS SWD V 2018 PG 99014719, DEED # 201899014719 12 MYRNA ESCOBAR MCCLAIN 170259 511 BINDSEIL GROVE TX SINGLE FAMILY R-7 BINDSEIL FARMS DEED V 2022 PG 99021519, DEED # 202299021519 13 KAVARI C STEEN 170260 507 BINDSEIL GROVE TX SINGLE FAMILY R-7 BINDSEIL FARMS DEED V 2022 PG 99008841, DEED # 2022-99008841 14 FRANCISCO J JR & ELIZABETH MENDOZA 170261 503 BINDSEIL GROVE TX SINGLE FAMILY R-7 BINDSEIL FARMS DEED V 2020 PG 99008614, DEED # 202099008614 15 MICHAEL WILLIAM & BRITTANY ANNE HEPBURN 170262 616 COLT TRAIL TX SINGLE FAMILY R-7 BINDSEIL FARMS DEED V 2019 PG 99030043, DEED # 201999030043 16 MICHELLE SIMONE & GERALD ROBERSON 170263 620 COLT TRAIL TX SINGLE FAMILY R-7 BINDSEIL FARMS DEED V 2020 PG 99010160, DEED # 202099010160 17 OSCAR JR & CAROLINA A GARZA 170306 506 BINDSEIL GROVE TX SINGLE FAMILY R-7 BINDSEIL FARMS DEED V 2020 PG 99013818, DEED # 202099013818 18 SHACOBI LACOLE & ANDREW CORNEL HUNT 170305 510 BINDSEIL GROVE TX SINGLE FAMILY R-7 BINDSEIL FARMS DEED V 2022 PG 99000385, DEED # 202299000385 19 YES COMPANIES WFC LLC 47091 MEADOW VIEW DRIVE SCHERTZ TX PLAYGROUND MHP WINDY MEADOW SWD V 2016 PG 17980, DEED # 2016-017980 20 YES COMPANIES WFC LLC 47419 MASKE ROAD SCHERTZ TX CLA13 MHP WINDY MEADOW #3 SWD V 2016 PG 17980, DEED # 2016-017980 21 CITY OF SCHERTZ 113896 MASKE ROAD SCHERTZ TX RURAL R2 DRAINAGE ROW SWD V 2113 PG 243, DEED # 0501927 LEGAL DESCRIPTION: YES COMMUNITIES MANUFACTURED HOME PARK PLANNED DEVELOPMENT DISTRICT CITY OF SCHERTZ, GUADALUPE COUNTY TEXAS Revision #2 Prepared by January 10, 2023 Firm Number 13711 For: YES COMMUNITIES, LLC. Mike Askins 5050 S. Syracuse Street, Suite 1200 Denver Colorado 80237 P.O Box 2203, Boerne, TX 78006 (210)365-5029 jmcgarr@civiltechmc.com Page 2 of 5 Table of Contents:  General  Purpose AFFECTED UDC ARTICLES 1. Manufactured Homes and RV Parks (Article 6) 2. Amendments to the Planned Development District (PDD) APPENDIX Exhibit “A” – Zoning Exhibit Exhibit “B” – Metes and Bounds Exhibit “C” – Site Plan P.O Box 2203, Boerne, TX 78006 (210)365-5029 jmcgarr@civiltechmc.com Page 3 of 5  General Yes Communities Manufactured Home Park is a proposed 12.825 acre single family residential type of development designed for the placement of homes that are transported to the site by means of attached axles or trailers. The site is located off of Maske Road approximately 1,500 feet west of Schertz Parkway within the City of Schertz, Guadalupe County, Texas. The property is partly developed with a manufactured home park, private streets, water, sewer, and electric lines serving the property consisting of approximately 12.85 acres. The owners wish to continue developing the remaining portion of the property; however, the city’s master thoroughfare plan has the extension of Live Oak running through the subject tract as well as the site needing a second access point. This road dedication, floodplain and city’s new changes to the development articles regarding manufactured homes will not allow for the continuation of the existing tract size, spacing or layout of the development as platted. This development has been previously platted as one lot, Unit 4 Windy Meadows, and has an approved master plan. There is currently one lot as platted with multiple “Spaces” for manufactured homes. This development will not be creating or dividing out the ownership of the property, just provide lease spaces that will house the manufactured homes. The Planned Development District (PDD) as described in the following documents will outline how the development can utilize the existing infrastructure while upholding a greater design standard for the manufactured home park.  Purpose Provide for adequate space and site diversification for residential purposes that accommodate the design criteria of manufactured homes as used for single family residences. This PDD will allow for adequate vehicular and pedestrian circulation, promote housing densities compatible with existing and future public support facilities, promote the best desirable land use for this property as well as promote stability of this development.  Development Standards This property will develop in accordance with the provisions of the City of Schertz unified Development Code (UDC) as amended. This property will develop in accordance with the base zoning district of Manufactured Home Parks District (MHP) with the following modifications. P.O Box 2203, Boerne, TX 78006 (210)365-5029 jmcgarr@civiltechmc.com Page 4 of 5 AFFECTED UDC ARTICLES 1. Manufactured Homes and RV Parks (Article 6) C. Minimum Site Requirements: (1) Setbacks: (a) Each dwelling unit shall have a minim setback of twenty feet (20’) from all other dwelling units. Any structure attached to the home shall be considered a part of the home and must maintain the minimum separation distance. (b) Each dwelling unit shall have a minimum setback of fifteen feet (15’) from access easements. (c) Each dwelling unit shall have a minimum setback of ten feet (10’) from the public right-of- way. (d) Each dwelling unit shall have a minimum setback of seven and a half feet (7.5’) from perimeter property fencing. (2) Storage Facilities: (a) A maximum one hundred twenty (120) square foot accessory building may be provided for each dwelling unit to be utilized solely for storage of personal items belonging to the owner or tenant of the space. All accessory structures shall have a minimum setback of fifteen feet (15’) from all other dwelling units. D. Access, Traffic Circulation and Parking: (1) Private roads will be constructed from a standard pavement section consisting of compacted subgrade, base, and a surface treatment or engineered section. The pavement section will have a minimum pavement width of thirty (30) feet. (2) Common area parking will be provided at thirty-two (32) additional parking spaces located within the development separate from the parking pad located at each residence. The additional parking spaces will have a dimension of twenty (20) feet perpendicular to the curb and ten (10) feet parallel to the curb line. See the Site Plan for location. (3) Onsite parking will be provided with a private parking pad to serve each house. Parking pads will consist of concrete or asphalt pavement and have twenty (20) foot by twenty (20) foot dimensions. (4) Sidewalks (a) Maske Road – Sidewalks along the frontage of Maske Road will not be constructed, as shown on the attached site plan and described in the City of Schertz’s Public Works Design Criteria for rural road sections. (b) Live Oak Road – Sidewalk along the frontage of the future Live Oak will not be constructed with this development and the right-of-way shall remain vacant. No public street or road sections to be constructed. E. Recreation Area: P.O Box 2203, Boerne, TX 78006 (210)365-5029 jmcgarr@civiltechmc.com Page 5 of 5 (1) Individuals within this development shall have access to other YES Communities common areas within Units 1-3 of the Windy Meadows development. This is to include the amenity center, private park pavilion basketball court, swimming pool, and picnic and BBQ areas. F. Screening and Buffering (1) Street Buffer (Future Live Oak) (a) A five foot (5’) street buffer for the future Live Oak alignment shall be placed along the proposed alignment of Live Oak as shown on the associated site plan. The buffer shall include a masonry fence that shall be no less than six feet (6’) and no greater than eight feet (8’) in height. The product known as “Fencecrete” will be an acceptable masonry material for this fence or approved equal. The fence shall terminate at the property boundaries or sooner if sight visibility becomes an issue at future or current intersections. (b) The landscaping within the street buffer shall consist of eight (8) planters spaced no less than eighty feet (80’) and no more than one hundred feet (100’) apart. Each planter shall include a total of twelve and a half caliper inches (12.5”) of trees planted, with the minimum tree size being two and a half caliper inches (2.5”) and the maximum number of trees being five (5). Each planter shall also include twenty (20) shrubs, with the minimum shrub size being five (5) gallons. (2) Street Screening (Maske Road) (a) An upgraded screening fence shall be installed along Maske Road, ten feet (10’) offset from the right-of-way. The fence shall consist of treated lumber including a top rail with concrete or masonry columns placed at maximum intervals of forty (40) feet or a fence of complete masonry similar to the Live Oak screening fence. The height of the fence shall be no less than six (6) feet and no greater than eight (8) feet. The fence shall terminate at the property boundaries or sooner if sight visibility becomes an issue at future or current intersections. 2. Amendments to the Planned Development District (PDD) Any significant future changes from the established Dimensional Requirements for the approved PDD, or changes that alter the concept of the PDD and/or increase the density, will cause the plan to be re- submitted for approval by the Planning & Zoning Commission and the City Council, including a new public hearing with applicable fees. Minor changes which do not change the concept or intent of the development shall be approved or denied administratively. P.O. Box 2203, Boerne, TX 78006 (210) 365-5029 jmcgarr@civiltechmc.com Firm # 13711 Page 1 of 1 Yes Companies WFC, LLC. Manufactured Home Park Letter of Intent The subject tract consists of 12.489 acres being all of Windy Meadow Unit 4 Subdivision Plat, recorded in Volume 5, Page 320B Guadalupe County, Texas. The tract is located approximately 1300 feet south west of the intersection of Maske Road and Schertz Parkway. The intent of this PDD Revision is to reduce the setback requirement from each individual home along Maske Road to the privacy fence along the boundary. The Original PDD accounted for a 10-foot minimum clearance between home and fence. However, due to site constraints and improvements found in the field, the fence as proposed would create a safety issue for traffic along Maske Road. Thus, the fence alignment was adjusted in the field and placed further into the developer’s property away from Maske Road. The realignment created a conflict with the setback requirement of 10 feet from the fence and the back of the homes. We are asking for 7.5-foot setback requirement in place of the 10-foot setback. This will allow for a full- size home (76 feet) to be placed along the Maske Road home pads and still fall between the setback requirements, both front and back. Yes Companies WFC, LLC. Owners Agent Craig Schellbach, P.E. Date: January 19, 2023 !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P!P !P !P !P!P !P !P !P !P !P!P !P !P !P !P !P !P !P !P !P !P !P !P !P !P U U U U U U U U U U U U U U U U U U U 1 1 1 3 7 4 1 1 1 3 7 3 64594CHALKER JONPENFIELD 64550ACKERMANNROSEMARIE 64579BUSCHEBER G 47089YES COMPANIESWFC LLC 115100MARTINEZ ARMANDO &KATRINA MIDDLETON 113896CITY OFSCHERTZ 64589BOGGESS GEORGE& MARY EVELYN 64585ANDERSONDEBRA K 64578BOGGESS BETTYJOE ESTATE 1 7 0 2 6 0 47419YES COMPANIESWFC LLC 47091YES COMPANIESWFC LLC 170261 64549ACKERMANNROSEMARIE 47421YES COMPANIESWFC LLC 11 1 3 7 5 11137 8 111376 JONAS W O O D S HOMEOW N E R S ASSOCIA T I O N 11 1 3 7 7 170262 1 7 0 3 0 6 1 7 0 3 0 5 170282BINDSEIL FARMSRESIDENTIALCOMMUNITY INC 170263 1 7 0 2 5 9 1 7 0 2 5 8 GuadalupeCounty 6" WL 8 " W L 16" W L 6" WL 6 " W L 8 " W L 8" WL 1 2 " W L 16" WL 8" WL 6 " W L 8 " W L 8" WL 1 6 " W L 6 " W L 6 " W L 8 " W L 8" WL 12" WL 3 " W L 3 " W L 8" WL 8 " W L 16" WL 16" W L W I N D Y F A L K G U S T Y P T H A W T H O R N E P A S S LIVE O A K R D W I N D Y M E A D O W C T S U N S H I N E F A L L S REDBUD WAY BINDSE I L GROVE THORE A U TRL RAIN LILY LN BETTY J O E L N C H E R R Y B L O S S O M D R CREPE M Y R T L E L N R O S E S H A R O N D R M A R K E T T R A I L O L E A N D E R D R MEADOWVIEW DR MARIGO L D L N GINSBE R G D R COLT TRAIL B E T T Y J O E L N MASKE R D 30" PVC ASTM F679 18" Und e t e r m i n e d 8" PVC S D R 3 5 8" PVC SDR 35 8" PVC S D R 3 5 8 " P V C S D R 2 6 8" PVC SDR 26-D22 4 1 8 " P V C S D R 3 5 8 " P V C S D R 2 6 8" PVC SDR 26 6" PVC SDR 35 8 " P V C S D R 3 5 8 " P V C S D R 2 6 8 " P V C S D R 2 6 8" PVC S D R 3 5 8 " P V C S D R 3 5 8 " P V C S D R 3 5 8 " P V C S D R 3 5 8 " P V C S D R 3 5 6" PVC SDR 35 8" P V C S D R 3 5 8" P V C SD R 2 6 6" PVCSDR 35 8" P V C SD R 2 6 8" P V C SD R 2 6 8" PVC SDR 35 8 " P V C S D R 2 6 - D 2 2 4 1 6" PVCSDR 26 8" PVC SDR 26 8 " P V C S D R 2 6 8 " P V C S D R 2 6 8 " P V C S D R 3 5 8 " P V C S D R 3 5 8" PVC S D R 2 6 8" PVC S D R 3 5 6 " P V C S D R 3 5 8" PVC SDR 35 6 " P V C S D R 3 5 8" PVC S D R 2 6 8" P V C SD R 3 5 8" PVC S D R 2 6 8" P V C S D R 3 5 8" PV C S D R 3 5 (70' RO W ) ' P l a n n e d Residen t i a l Collecto r ( M A S K E R D ) (70' RO W ) ' P l a n n e d Residen t i a l C o l l e c t o r (EAST & W E S T C O N N E C T O R ) Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community41 Inch = 125 FeetWINDY MEADOWSUNIT 4(PLPDD20220136)0 125 250 375 50062.5 Feet <all other values> Freeway Principal Arterial Planned Principal Arterial Secondary Arterial Planned Secondary Arterial Secondary Rural Arterial Planned Secondary Rural Arterial Residential Collector Planned Residential Collector Commercial Collector B Planned Commercial Collector B Commercial Collector A Planned Commercial Collector A <all other values> Highways Major Roads Minor Roads Other Cities 1" 2" 3" 4" 6" 8" 10" 12" 16" 18" 20" 24" 30" 36" 200' Buffer Schertz Municipal Boundary County Boundaries U Hydrant !P Manholes Schertz Gravity Schertz Pressure Neighboring Gravity Private Gravity Private Pressure 500GINSBERG DR(111375) 2301 H A W T H O R N E PASS (111377 ) 508 GINSBE R G D R (111373 ) 289MASKE RD(64593) 2415 BETTYJOE LN(115100) MASKE RD(113896) 309 MASKE RD(64578) 5 1 0 B I N D S E I L G R O V E (1 7 0 3 0 5 ) 620 CO L T T R L (17026 3 ) 5 0 7 B I N D S E I L G R O V E (1 7 0 2 6 0 ) 5 1 5 B I N D S E I L G R O V E (1 7 0 2 5 8 ) MASKE RD(47419) MEADOWVIEW DR(47091) 320 MASKE RD(64549) MASKE RD(47421) 2305 H A W T H O R N E PASS (111378 ) MASKE RD (111376) 504 GINSBE R G D R (111374 ) 616 CO L T T R L (17026 2 ) 5 0 6 B I N D S E I L G R O V E (1 7 0 3 0 6 ) 5 1 1 B I N D S E I L G R O V E (1 7 0 2 5 9 ) 503 BIN D S E I L GROVE (17026 1 ) T H O M A S W O L F E MASKE R D B R E T O N P A S S C H E S T N U T D R FI E L D S W A Y M E A D O W S A G E BINDSE I L G R O V E R E D B A R N R U N C O L T T R A IL W I N D Y M E A D O W C T S U N S H I N E F A L L S S U F F O L K P A S S A S T U R I A N P A S S R E DBUDWAY O A K S T TRACTORPASSSPRING M E A D O W L N B I N D S E I L C R E E K SILO ST P R I M R O S E MEADOW VIEW DR R A I N LIL Y LN WAGON W H E E L G U S T Y P T H A W T H O R N E P A S S CREPE M Y R T L E L N M E S A VERDE R O S E S H A R O N D R THURB E R D R M E A D O W O R E MISTY CV W I N D Y F A L K O L E A N D E R D R C H E R R Y B L O S S O M D R MARE W A Y M A R K E T T R A I L S T A L L I O N P A S S W I N D Y P T MARIGO L D L N COTTO N P A T C H LIV E O A K R D B E T T Y J O E L N PLANT E R S P A S S SCHERTZPKWY THORE A U T R L GINSBE R G D R 4 0 400 800 1,200200 Fe e t City of S che rtzWind y Me ad ow s U nit 4(PLPDD20220136)Last U pd ate : January 10, 2023 “The City of S che rtz provid e s this Ge ographic Inform ation S yste m prod uct "as is" w ithout any e xpre ss or im pliedw arranty of any k ind includ ing but not lim ited to the im plie d w arrantie s of m e rchantability and fitne ss for a particular purpose .In no e ve nt shall The City of S chertz be liable for any spe cial, ind irect or conse quential d am age s or any d am age s w hatsoe ve r arising out of or in conne ctionw ith the use of or pe rform ance of the se m ate rials. Inform ation publishe d in this prod uct could includ e te chnical inaccuracie s or typographical errors. Pe riod icalchange s m ay be m ad e and inform ation m ay be ad d e d to the inform ation here in. The City of S che rtz m ay m ak e im prove m e nts and /or change s in the prod uct(s)d e scribe d he re in at any tim e .” City of S che rtz, GIS S pe cialist: Bill Gard ne r, gis@sche rtz.com (210) 619-1185 Proje ct Are a 200' Buffe r Ord. No. 23-S-01 1 12.5 Acre Rezone Request from Planned Development District (PDD) to Planned Development District (PDD) for Windy Meadows Subdivision-Unit 4 Emily Delgado Planning Manager February 28, 2023 2 3 January 13th: 20 Public Hearing Mailers Sent and Notice Signs placed on property. February 8th: Public Hearing Notice published in San Antonio Express News As of February 15th: No Responses Received. 4 5 Background •April 7, 2020, City Council approved Ord. 20-S-01 which rezoned the property from Manufactured Home Park District (MHP) to Planned Development District (PDD). Since the approval of the PDD the subject property has gone through the replat process including installation of public infrastructure and required screening and landscaping per the PDD. •Ord. 20-S-01 stipulated that a screening fence was to be constructed along Maske Road and that homes would have a minimum setback of ten feet (10’) from this perimeter fencing. 6 Background •However, during the platting and construction process it was determined that the location of this perimeter fence would need to be shifted ten feet (10’) into the subject property away from Maske Road. •The new location of the fence would provide increased safety for drivers along Maske Road and allow for drainage. •However, the new location also created site constraints for installation of new manufactured homes that would comply with the 10’ setback requirement. 7 8 Proposed PDD Modifications •The proposed PDD Design Standards state: –"Each dwelling unit shall have a minimum setback of seven and a half feet (7.5') from perimeter property fencing." •The proposed reduction of setback from ten feet (10') to seven and a half feet (7.5') would allow for a full-size manufactured home, which is typically seventy-six feet (76'), to be placed along the Maske Road home pads and still meet the designated front setback •There are no proposed changes to the land use, other setbacks, or street buffer along the future Live Oak (already installed). •There are two proposed changes within this PDD modification: –Section C of Minimum Site Requirements; which was modified to state, "Each dwelling unit shall have a minimum setback of seven and a half feet (7.5') from perimeter property fencing". –Section F (2) Street Screening (Maske Road); which was modified to indicate the screening fence along Mask Road is ten feet (10') offset from the right-of-way. 9 Windy Meadows Unit 4-Replat Exhibit 10 Windy Meadows Unit 4-Conceptual Plan 11 Staff Analysis •The change that was made to the location of the fencing along Maske Road was to improve safety for traffic, which ultimately cause site constraints. •The proposed zone change would account for the site constraints and will allow for a modification to the PDD Design Standards which will allow for full size (76’) manufactured homes to be placed along Maske Road while still complying with the front and proposed setback along Maske. •The proposed PDD Design Standards modification does not change the intent of the previously approved PDD. 12 Recommendation •Staff Recommendation: –The proposed PDD Design Standards and associated zone change have been reviewed by the Planning, Engineering, Public Works, and Fire Department with no objections. –Staff recommends approval of the proposed zone change (Ord. No. 23-S-01)to Planned Development District (PDD) as presented which would allow a reduced setback of 7.5 feet from the property fencing adjacent to Maske Road. •Planning & Zoning Commission Recommendation: –The Schertz Planning and Zoning Commission met on January 25, 2023 and voted to recommend that City Council approve the proposed zone change by a unanimous vote. Agenda No. 13.   CITY COUNCIL MEMORANDUM    City Council Meeting:February 28, 2023 Department:Planning & Community Development Subject: Ordinance No. 23-S-02 - Conduct a public hearing and consideration and/or action on a request to rezone approximately 25 acres of land from Pre-Development District (PRE) to Planned Development District (PDD), generally located approximately 2,200 feet southeast of the intersection of Country Club Boulevard and IH-35 access road, also known as a portion of Comal County Property Identification Number 377261 and Guadalupe County Property Identification 63833, City of Schertz, Comal County and Guadalupe County, Texas. First Reading (B. James, L. Wood, E. Delgado) BACKGROUND The applicant is proposing to rezone approximately 25 acres of land from Pre-Development District (PRE) to Planned Development District (PDD) with a base zoning of Townhome District (TH).  Public Notice: One hundred seventeen (117) public hearing notices were mailed to the surrounding property owners on January 13, 2023. At the time of this report (February 24, 2023), staff has received the following responses one (1) neutral, twenty (20) opposed, and twenty-four (24) in favor of the proposed zoned change request. Additionally, staff has received a letter of support from the Scenic Hills HOA. A public hearing notice was published in the "San Antonio Express" on February 8, 2023 prior to the City Council public hearing.  If a proposed zoning change is protested in writing and signed by the owners of at least twenty percent (20%) of the area of the lots or land immediately adjoining the area covered by the proposed zoning change or zoning map amendment and extending 200 feet from that area, the proposed change must receive, in order to take effect, the affirmative vote of at least three-fourths (¾) of all members of the City Council according to LGC, Local Government Code § 211.006(d). At the time of this staff report (February 15, 2023) the total percentage of the protested parcel acreage is 4.11%, therefore, the 3/4 vote has not been triggered for the City Council. Proposed Zoning Concept:  The proposed zoning is to Planned Development District (PDD) with a base zoning of Townhome District (TH). The proposed development will be a gated community with no more than 198 units. These will be spread across fifty-one (51) buildings. Six (6) of the proposed buildings would have three (3) units and the remaining forty-five (45) buildings will have four (4) units. Each unit is proposed to be its own townhome and could be sold separately. Each unit will be between 1,300 square feet and 1,400 square feet. Every unit will feature 3 bedrooms, 2.5 baths, an eat in kitchen, two living rooms, a laundry room, an office/flex room, and a covered patio. Additionally, each unit will have its own garage, covered back patio, and a private yard. The proposed development would be maintained by the HOA and is proposed to have 7.52 acres of green space and amenities.  The PDD Design Standards propose to conform with the Townhome District zoning with modifications to the lot width and depth as shown in the table below.  to the lot width and depth as shown in the table below.     Classification Minimum Lot Size Minimum Yard Setback  Area Square Footage Width Ft. Depth Ft. Front Ft. Side Ft. Rear Ft.  Townhome District Per the Unified Development Code 2,500 25 100 25 10 20 Townhome (Type A)3,045 35 87 25 10, 0 20 Townhome (Type B)2,175 25 87 25 0, 0 20 * Each lot will have a 10-foot side setback if on the end or a zero setback if in the interior, a 25- foot front setback, and a 20-foot rear setback.  Parks and Amenities: The proposed PDD plans to incorporate 7.52 acres of green space and amenities. This would include a pavilion, playground for the community, a concrete walking path. Additionally, a mail center is proposed with a covered pavilion, and additional parking access. There is also a proposed 0.45 acre fenced-in private dog park, a 1.85 acre private picnic / trail / community garden area, 0.30 acre of miscellaneous green spaces and a 4.01 acre open space / easement.  Fire Suppression and Fire Walls: Per the proposed PDD Design Standards due to the proposed reduced side yard setbacks, each townhome is proposed to have fire sprinklers, will require all A/C condensers to be in the rear yard, and exterior walls would be at least a minimum of a 1-hour fire rated.  Parking: Per the proposed PDD Design Standards there are a proposed 654 parking space across the development.   Additional Design Standards Proposed: Per the proposed PDD Design Standards the developer has proposed to create a twenty foot (20') buffer in the rear of the yards associated with the development that are adjacent to the Fairways at Scenic Hills neighborhood. Additionally, the developer will prohibit the placement of any structures, including but not limited to sheds, in the buffer area. In this proposed twenty-foot (20') buffer, the developer will plant one tree in the middle of said buffer.   GOAL The project goal is to rezone approximately 25 acres of land, generally located approximately 2,200 feet southeast of the intersection of Country Club Boulevard and IH-35 access road, also known as a portion of Comal County Property Identification Number 377261 and Guadalupe County Property Identification 63833 from Pre-Development District (PRE) to Planned Development District (PDD).  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 In 2022 the applicant submitted a zone change request to a Planned Development District (PDD) with a In 2022 the applicant submitted a zone change request to a Planned Development District (PDD) with a base zoning of Apartment/ Multi-Family Residential (R4). That proposal included approximately 220 units to be developed as fourplexes. On September 27, 2022 the City Council was unable to obtain the super majority needed for the approval of that zone change application, which ultimately lead to the application being denied. During the discussion at the September 27, 2022 City Council meeting there were concerns with the proposed density.  Based on the previous City Council feedback the developer has made changes to the proposed PDD to address the concerns presented at the September 27th meeting. Rather than the previously proposed PDD with a base zoning of Apartment/ Multi-Family, the current proposal is for a PDD with a base zoning of Townhome District, which was directly discussed at the City Council meeting. This ultimately reduced the overall density proposed within the development.  The Schertz Sector Plan for Northern Schertz designates the subject property as Single-Family Residential. The Single-Family Residential land use designation encourages the mixture of various residential type development as well as maintaining a walkable neighborhood feel. The proposed rezoning to Planned Development District (PDD), with a base zoning of Townhome District (TH) does conform to the Comprehensive Land Use Plan designation as it would provide a needed mixture of housing type to Schertz. The proposed development would have a maximum of fifty-one (51) buildings consisting of no more than 198 units.  As previously stated, the applicant in September of 2022 proposed to rezone the property to Planned Development District, although that application was ultimately denied as part of that application the applicant was working with the Parks Department in relation to a trail that is shown on the 2017 Schertz Transportation Plan-Trails Network. The previous proposal was to dedicate land within the overhead utility easement to be utilized for a trail that would ultimately be part of the "Great Northern Trail". This proposed trail was shown on the previous concept plan and identified the public walking trail along with private exercise equipment and benches.  The current proposed development no longer accounts for, or proposes the dedication or construction of the walking trail within the overhead electrical easement. Based on the Trails Presentation at the January 10, 2023 City Council meeting, the City Council expressed their desire for trails within the City of Schertz and the importance of requiring trails to be constructed with developments. Based on City Council's desire to have trails and the subject property having an identified trail per the Schertz Transportation Plan-Trails Network, staff feels that the development should be required to dedicate and construct the trail per the plan.    RECOMMENDATION Staff Recommendation:  Staff recommends approval of the proposed zone change to Planned Development District (PDD) with a condition that per the 2017 Schertz Transportation Plan-Trails Network the proposed project would include the trail on all future exhibits and plans and construct the identified trail on the subject tract. Planning and Zoning Commission Recommendation:  The Schertz Planning and Zoning Commission met on January 25, 2023 and voted to recommend that City Council approve the proposed zone change with a condition that the proposed project would include the trail on all future exhibits and plans by a 5-2 vote with Chairman Outlaw and Commissioner McMaster with the nay votes.  Attachments Ordinance No. 23-S-02  Exhibit A- Metes and Bounds  Exhibit B- Zoning Exhibit  Exhibit C- PDD Design Standards  Conceptual Plan  Aerial Exhibit  Public Hearing Notice Map  Public Hearing Responses as of 02.24.2023  Scenic Hills HOA Letter of Support  City Council Presentation Slides  ORDINANCE NO. 23-S-02 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE OFFICIAL ZONING MAP BY REZONING APPROXIMATELY 25 ACRES OF LAND FROM PRE- DEVELOPMENT DISTRICT (PRE) TO PLANNED DEVELOPMENT DISTRICT (PDD), GENERALLY LOCATED APPROXIMATELY 2,200 FEET SOUTHEAST OF THE INTERSECTION OF COUNTRY CLUB BOULEVARD AND IH-35 ACCESS ROAD, ALSO KNOWN AS A PORTION OF COMAL COUNTY PROPERTY IDENTIFICATION 377261 AND GUADALUPE COUNTY PROPERTY IDENTIFICATION 63833, CITY OF SCHERTZ, COMAL AND GUADLAUPE COUNTY, TEXAS WHEREAS, an application to rezone approximately 25 acres of land from Pre- Development District (PRE) to Planned Development District (PDD), generally located approximately 2,200 feet southeast of the intersection of Country Club Boulevard and IH-35 access road, and more specifically described in the Exhibit A and Exhibit B 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 zone change (the “Criteria”); and WHEREAS, on January 25, 2023, the Planning and Zoning Commission conducted a public hearing and, after considering the Criteria, made a recommendation to City Council to approve with conditions the requested rezoning according to the development standards set forth in Exhibit C attached herein (the “Development Standards”); and WHEREAS, on February 28, 2023, 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 and Exhibit B, is hereby zoned Planned Development District (PDD) 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 to 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, including 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 ON FIRST READING, the 28th day of February 2023. PASSED, APPROVED and ADOPTED ON SECOND READING, the 7th day of March, 2023. CITY OF SCHERTZ, TEXAS _____________________________ Ralph Gutierrez, Mayor ATTEST: Sheila Edmondson, City Secretary (city seal) COMAL COU N T Y GUADALUPE C O U N T Y COMAL COU N T Y GUADALUPE C O U N T Y 35 ZONE CHANGE EXHIBIT ZONE CHANGE EXHIBIT 1 The Villas at Bluebonnet Ridge A PLANNED DEVELOPMENT DISTRICT City of Schertz January 2023 Table of Contents 1. Planned Development District ----------------- 2 2. PDD Purpose and Intent ------------------------- 2 3. The Property ---------------------------------------- 2-3 4. Parks and Amenities ------------------------------ 3-4 5. Zoning District -------------------------------------- 4 6. Townhome District Zoning ---------------------4-5 7. Homeowners Association and Maintenance ---------------------------------------- 5 8. Architectural Review Comitee ----------------- 6 9. Site Design Standards ---------------------------- 6 10. Fire Suppression and Fire Walls --------------- 6 11. Parking ----------------------------------------------- 6-7 12. Amendments to the Planned Development District (PDD) -------------------- 7 Exhibits A. Meets and Bounds Description B. The Villas at Bluebonnet Ridge C. Zoning Exhibit D. Amenities, Parks, Entry, Mail Station E. Parking Exhibit Per Unit January 2023 Habi Land, LLC. Authored by: Eugenio Murillo 2 The Villas at Bluebonnet Ridge 198 Unit Development on 24.1784 Acres Planned Development District. Understanding there may be circumstances in which a development might not be able to adhere to the strict regulations and design standards set forth in the Schertz Unified Development Code (UDC), the UDC established Article 5, and Section 21.5.10, a Planned Development District (PDD), as an alternative approach to conventional land development. The City of Schertz Unified Development Code as amended will govern development of the property, except for the following statements. PDD Purpose and Intent. The purpose of PDD regulations is to encourage and promote more creative, innovative, and imaginative land development than would be possible under the regulations found in a typical zoning district. The intent is to allow substantial flexibility in planning, design, and development standards in exchange for greater land values and amenities. Enhanced parkland and open space, preservation of natural resources, pedestrian friendly environment, and deviation from the typical traffic patterns are all a result of this allowed flexibility. It is this intrinsic flexibility, in the form of relief from the normal zoning ordinances, design standards, land use densities, and subdivision regulations, that allows for the definition of uses, densities and standards that will permit the alternative planning associated with a PDD and this development known as The Villas at Bluebonnet Ridge. The Property. The location of the subject property is directly west of the Scenic Hills Neighborhood and directly east of The Fairways at Scenic Hills. The current condition of the property creates a unique opportunity for development. The approximately 24.1784-acre site was previously known as part of the Northcliffe Golf Club. The property is bound by Country Club Boulevard to the south, Columbia Drive to the North, and existing single-family neighborhoods to the east and west. 3 Analysis of the property via phase 1 ESA reports, geotechnical reports, and bore samples do not reveal any physical constraints, potential health, or safety hazards. Further evaluation of the tract by the Developer’s engineers has confirmed utilities are available and the property’s demands can be served. The Villas at Bluebonnet Ridge (Exhibit B) is proposed. Such amenities will include both passive and active areas, as well as concrete pathways and crushed granite walking trails. Multi-purposed walkways and sidewalks will provide links between park areas, open spaces, resident units, and amenities. Amenities provided and shown on Exhibit D will include playscapes, picnic tables, and a neighborhood pavilion. All of which, promote a safe and pedestrian friendly environment and overall livable community. Also, Exhibit D will depict the entry gate and landscaping features. Our current concept plan consists of a gated community with no more than 198 units. These units will be spread across 51 buildings. Six building will have 3 units in them, and the remaining forty-five buildings will have each have 4 units. Each unit will be a townhome and can be sold separately. Each unit will be between 1,300 sf and 1,400 sf. Every unit will feature 3 bedrooms, 2.5 baths, an eat in kitchen, two living rooms, a laundry room, an office/flex room, a covered patio, and a one car garage. All buildings will have its own fire sprinkler system meeting NFPA and local code requirements. Each unit will have its own garage, covered back patio, and private yard. This proposed community, will be managed, and maintained by The Villas at Bluebonnet Ridge “HOA”. The community is designed to enhance the overall neighborhood standards by incorporating 7.52 acres of green space and amenities. This includes multiple Private Parks including an open space easement, all of which is outlined in the overall site plan Exhibit B and Exhibit D. Parks & Amenities. The development’s interior private park and amenities as shown on 0.59 acres, are designed to house a pavilion for birthday parties & special events, a playground for the community, and a concrete walking path. The mail center is designed with a covered pavilion, and additional parking access will be provided on 0.32 acres. In addition to the previously mentioned improvements, the development will also feature a 0.45 acre fenced in private dog park, a 1.85-acre private Picnic/Trail/Community 4 Garden area, 0.30 of miscellaneous Green Spaces and a 4.01-acre open space. All the above is shown on Exhibit B and Exhibit D Zoning District. There are circumstances, due to property constraints or external factors, which do not always support the notion that one size fits all especially in applying zoning subdivision codes as such relates to property development. As a planned development, the attached “The Villas at Bluebonnet Ridge” (Exhibit B) as well as this document define the types of uses for this proposed PDD. The plan delineates land use that allows for three and four-unit buildings as well as delineating parks, amenities, and open space. Specifically, UDC Sec. 21.9.7.G would ordinarily require the Developer to install a twenty- foot (20’) landscape buffer adjacent to the property line of the residential use or residentially zoned property. In this case, that would be the Fairways at Scenic Hills neighborhood. The Developer maintains installing this twenty-foot (20’) buffer outside the property boundaries would essentially create an alley between Fairways at Scenic Hills neighborhood and the proposed development. Given the length of the alley, the Developer maintains this could create an area for potential loitering as well as littering. The Developer would propose to create the twenty-foot (20’) buffer in the rear of the yards associated with the development that are adjacent to the Fairways at Scenic Hills neighborhood. The Developer will prohibit the placement of any structures, including but not limited to sheds, in the buffer area through the HOA restrictions. The Developer shall plant one tree in the middle of the twenty -foot (20’) buffer in each yard. The Developer believes in doing both, they have met the spirit of UDC Sec. 21.9.7.G. Townhome District Zoning. The intent of the development is to conform with the Townhome District zoning district but to modify the lot width and depth as follows. Each lot is comprised of at least 3,045 sf or 2,175 sf with a minimum depth of 87-feet. Each lot will have a width of at least 25 feet or 35 feet. There will be 143 lots with a 25-foot width and 55 lots with a 35 foot width. Each area, as shown and identified on Exhibit E. Each lot will have a 10-foot side setback if on the end or a zero setback of in the interior, a 25-foot front setback, and a 20-foot rear setback per the table below. Where residential lots have double frontage, running from one street to another, no access from the rear of the property will be permitted to the street. Only one access point will 5 be permitted from a residential lot, so long as the access is from the front of the lot. All lots with double frontage within that block will have the same restriction and orientation as the lot on either side. Table 21.5.7.A DIMENSIONAL REQUIREMENTS RESIDENTIAL ZONING DISTRICTS Minimum Lot Size and Dimensions Minimum Yard Setback (Ft) Miscellaneous Lot Requirements Code Zoning District Area Sq. Ft. Width Ft. Depth Ft. Front Ft. Side Ft. Rear Ft. Minimum Off-Street Parking Spaces Max Height Ft. Max Imperv Cover Key TH Per UDC Townhome District 2500 25 100 25 10 20 2 35 75% h,j,k,l, m TH (Type A) Townhome District 3,045 35 87 25 10, 0 20 2 35 75% h,j,k,l, m TH (Type B) Townhome District 2,175 25 87 25 0, 0 20 2 35 75% h,j,k,l, m Key: h. Corner lot shall have minimum 15-foot yard setback from street right-of-way. j. Site Plan approval required. k. Swimming pools count toward the maximum impervious cover limitations, unless the swimming pool is equipped with a water overflow device appropriate for such pool, and only if it drains into any pervious surface, in which case the water surface shall be excluded. l. No variances may be permitted to exceed the maximum impervious cover limitations m. Refer to Article 14, section 21.14.3 for additional design requirements Homeowners Association & Maintenance. This development will be gated, and a Homeowners Association (HOA) will be established. The entire development both inside and outside of the gates to include irrigation will be maintained by the HOA’s maintenance crew. This is to include the maintenance of common areas, all front yards, side yards, and back yards. This is also to include landscape buffers as defined in Sec. 21.9.7 Landscaping, and maintaining fences, and/or walls. The HOA’s maintenance crew will have access to all back yards via side gates and interior gates between units. The HOA will have 102 master keyed locks to allow for access to maintain the interior unit’s backyard of each building. An 8-foot masonry wall will be installed along the boundary with The Northcliffe neighborhood. The landscape buffer abutting The Fairways at Scenic Hills will all be maintained by the HOA in its entirety unless agreed upon otherwise with The Fairways at Scenic Hills Homeowners Association. Crushed granite walking trails, concrete pathways, neighborhood amenities, and multi-use paths within the development’s common areas will all be maintained by “The Villas at Bluebonnet Ridge HOA” as well. 6 Architectural Review Committee. The Developer will establish an Architectural Review Committee (ARC) which will be responsible for reviewing and approving construction plans for all residential construction within The Villas at Bluebonnet Ridge. The ARC will consist of members appointed by the Developer until all the property within the Villas at Bluebonnet Ridge has been transferred to an independent third-party purchaser or to the HOA. Construction of residential and community amenities within the Villas at Bluebonnet Ridge shall first be submitted to the ARC for approval and to verify compliance with the terms, conditions, and obligations of the PDD and deed restrictions. The ARC shall review such contemplated construction and shall, if approved, provide verification in a form acceptable to the City by which the ARC verifies that the plan for the contemplated construction complies with the PDD and associated guidelines . Site Design Standards. This proposed development conforms to the Comprehensive Land Plan for orderly and unified development of streets, utilities, neighborhood design, and public land and facilities. Streets, gates, and lighting will be maintained by the HOA. All public utilities will be maintained by the city with easements to be recorded for access and maintenance as detailed in the utility plan provided to the city. Fire Suppression and Fire Walls. Due to the reduced side yard setbacks, each townhome within the Villas as Bluebonnet Ridge will have fire sprinklers, will require all A/C condensers to be in the rear yard, and exterior walls will be at least a minimum of a 1- hour fire rated. Parking. According to UDC Section 21.10.4, each 3-bedroom unit within this development is required to have 2.5 off street parking spaces. Plus, additional guest parking at a ratio of 5% of the required spaces. The intent of the development is to conform to the UDC requirements but to modify the section to allow for garage parking to be counted as part of the required spaces. As noted, and shown in Exhibit E, each 3 - bedroom unit has two driveway parking spaces in addition to one garage parking space for a total of 3 spaces per unit. In addition to the 594 off street parking spaces allocated across the development, there are an additional 16 parking spaces split between the 7 interior parks and mail station and an additional 44 spaces available on street to use as overflow and guest parking. Total parking spaces available are 654. Amendments to the Planned Development District (PDD). Any significant future changes from the established Dimensional Requirements for the approved PDD, which alter the concept of the PDD or increase the density, will cause the plan to be re - submitted for approval by the Planning & Zoning Commission and the City Council, including a new public hearing with applicable fees. Minor changes which do not change the concept or intent of the development shall be approved or denied administratively. The Vias !P !P!P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P!P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P!P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P !P g U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U 34755NOLLEY CARIBBEANPROPERTIES LLC 63838NOLLEY CARIBBEANPROPERTIES LLC 34548NOLLEY CARIBBEANPROPERTIES LLC 1 2 1 8 9 6 N O L L E Y C A R I B B E A N P R O P E R T I E S L L C 63835NOLLEY CARIBBEANPROPERTIES LLC377261HABI LANDLLC 63833HABI LAND LLC 40 7 2 4 40 7 2 3 40 6 0 0 40 6 0 3 3 4 8 0 0 108306 40 6 1 8 40626 40 7 2 0 40608 406 0 5 3 4 8 0 1 3 4 7 9 9 108307 40 7 2 1 40 6 0 2 40 7 2 2 407 1 7 406 0 7 407 1 8 40726 40727 40611 40619 40 6 0 1 40 7 2 5 406 0 4 40 5 9 8 40 5 9 9 406 0 6 108331 117165 117164 117 1 6 2 117 4 3 5 11 7 4 3 6 1 1 7 4 3 7 117434 1171 6 0 1 1 7 4 2 7 117158 117159 116735 1 2 1 9 3 5 1 2 1 9 3 6 117438 1219 2 9 121934 121932 121933 116737 116736 1219 2 8 11 5 7 2 0 11 5 7 1 9 1 2 1 8 9 7 121907 121910 1 1 7 4 3 2 121908 1219 0 9 1 2 1 9 1 2 12 1 9 1 1 117425 11 7 4 3 3 1 1 5 7 2 6 117163 117424 1174 2 6 117 4 2 8 1 2 1 9 1 3 117430 117429 115722 40615 40616 1157231 1 7 4 3 1 11 6 7 3 9 116 7 4 0 116742 40 6 2 1 4 0 5 9 0 40612 11 5 7 2 4 1 1 5 7 2 5 4 0 5 9 1 40 5 9 7 40 5 9 2 40 6 2 9 40 6 2 8 4 0 5 8 9 4 0 5 8 8 40 5 9 6 40623 40 6 2 7 40 5 9 3 40 5 9 4 40 5 9 5 121927 117439 12 1 9 3 0 1 2 1 9 3 1 1 1 7 1 6 1 11673 8 116741 117 4 2 3 40625 40620 40622 40 6 1 3 11572 1 40 6 1 0 40 6 1 7 40 6 0 9 40751 40 6 1 4 Comal County Guadalupe County 1" W L 2" WL 8" WL 8" WL 2" WL 1 2 " W L 6" W L 6" WL 6" W L 8"WL 1 2 " W L 8" WL 2" W L 8" WL 8" WL 6" WL 8 " W L 8 " W L 6" WL 6" WL 8"WL 6" W L 8" WL 10 " W L 6" WL 8 " W L 8" W L 8 " W L 6" W L 6" W L 6" W L 6" W L 6" WL 8 " W L 1 2 " W L 6" WL 6 " W L 6 " W L 6 " W L 6" WL 12" WL 8" WL 8" W L 12 " W L 6" WL 8 " W L 8" WL 8" WL 8"WL 8" WL 2"WL 2"WL 2"WL 2"WL 2"WL 8" W L 8 " W L 8" WL 2" WL 4" WL 4 " W L 12" WL 12" WL 1 2 " W L 2 " W L BEAVER CRK CHER R Y H U R S T STOR M K I N G S T A N D R E W S SE N N E N CV VIST A DR C R O O K E D S T I C K HUN T E R S G L E N PORT C H E S T E R BLACK BUTTE PEBB L E B E A C H BL A C K DI A M O N D C O U N T R Y C L U B B L V D O A K C T SCE N I C D R C Y P R E S S C T MIMOSA C T P E C A N C T ME R I O N WAY ST AND R E W S COLUMBIA BLACK B U T T E TAMAR O N FOX RUN GREENRIDGE G R A Y S O N C L I F F S M O K E Y P L A T T E IH 35 N A C C E S S R D IH 35 N A C C E S S R D TARRA N T HILL WHISP E R KNOL L CHEST N U T C T ELM C T CO V E R S C V GR E E N R I D G E B R O O K L I N E K N O L L W O O D IH 35 N CHARLES T O N FOXBRIA R L N WIMBLED O N D R 3 " P o l y V i n y l C h l o r i d e 8" P V C SDR 3 5 8" P V C S D R 3 5 8 " P V C S D R 3 5 8 " P o l y V i n y l C h l o r i d e 8" Poly Vinyl Chloride 8" P V C SD R 3 5 8 " P V C S D R 2 6 8 " P V C S D R 2 6 8" PVC S D R 2 6 8" PVC SDR 26 8" PVC SDR 35 8 " P V C S D R 3 5 8" P V C S D R 3 5 8" Poly V i n y l C h l o r i d e 8" PVCSDR 35 8" PVC S D R 3 5 8" P V C S D R 3 5 8" PVC SDR 3 5 8" PVC S D R 3 5 8" P V C S D R 3 5 8" P V C S D R 3 5 8" P V C SD R 3 5 8" PVC SDR 3 5 8" PVC S D R 3 5 8" P V C SD R 3 5 8" PVC SDR 35 8" P V C S D R 3 5 8" P V C SD R 3 5 8" PVC S D R 3 5 8 " P V C S D R 3 5 8 " P V C S D R 3 5 8" P V C S D R 3 5 8" PVC SDR 3 5 8" PVCSDR 35 8" PVC S D R 3 5 8" PVC SDR 26 8" PVCSDR 26 8 " P V C S D R 2 6 D - 2 2 4 1 8" P V C SDR 2 6 8" PVCSDR 26 8" P V C S D R 3 5 8" PVC SDR 3 5 8" PVCSDR 35 8" P V C S D R 3 5 8" PVC SDR 3 5 8" P V C S D R 3 5 8" PVC S D R 3 5 8" PVC S D R 3 5 8" P V CSDR 3 5 8" PVC S D R 2 6 8" PVC S D R 3 5 8" PVC SDR 26 8" PV CSDR 3 5 8 " P V C S D R 3 5 8" PVC S D R 3 5 8" Poly Vinyl Chlorid e 10" Pol y V i n y l C h l o r i d e 8 " P V C S D R 3 5 8" Poly Vinyl Chloride 8" P V C SD R 3 5 8" P V C S D R 3 5 8 " P V C S D R 3 5 8" PVC S D R 3 5 8 " P V C S D R 2 6 12" PV C S D R 3 5 8" PVC S D R 3 5 8" PVC SD R 3 5 8" Pol y V i n y l C h l o r i d e 8" Pol y V i n y l C h l o r i d e 10" P V C S D R 3 5 8 " P V C S D R 3 5 8 " P V C S D R 3 5 8 " P o l y V i n y l C h l o r i d e (250' R O W ) ' Freewa y ( I H 3 5 N ) (250' ROW)' F r e e w a y (IH 35 N ) (7 0 ' R O W ) ' R e s i d e n t i a l C o l l e c t o r ( C O U N T R Y C L U B B L V D ) Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community41 Inch = 200 FeetTHE VILLAS ATBLUEBONNET RIDGE(PLPDD20220186)0 200 400 600 800100Feet <all other values> Freeway Principal Arterial Planned Principal Arterial Secondary Arterial Planned Secondary Arterial Secondary Rural Arterial Planned Secondary Rural Arterial Residential Collector Planned Residential Collector Commercial Collector B Planned Commercial Collector B Commercial Collector A Planned Commercial Collector A <all other values> Highways Major Roads Minor Roads Other Cities 1" 2" 3" 4" 6" 8" 10" 12" 16" 18" 20" 24" 30" 36" Schertz Gravity Schertz Pressure Neighboring Gravity Private Pressure 200' Buffer Schertz Municipal Boundary County Boundaries U Hydrant !P Manholes GUADALUPE COUNTY 34548 - COUNTRY CLUB BLVD34755 - 5301 COUNTRY CLUB BLVD34799 - 3522 FOXBRIAR LN34800 - 3521 WIMBLEDON DR34801 - 3517 WIMBLEDON DR40588 - 3628 ELM CT40589 - 3624 ELM CT40590 - 3620 ELM CT40591 - 3604 ELM CT40592 - 3601 ELM CT40593 - 3701 HUNTERS GLEN40594 - 3705 HUNTERS GLEN40595 - 3709 HUNTERS GLEN40596 - 3713 HUNTERS GLEN40597 - 3717 HUNTERS GLEN40598 - 3721 HUNTERS GLEN40599 - 3725 HUNTERS GLEN40600 - 3729 HUNTERS GLEN40601 - 3733 HUNTERS GLEN40602 - 3737 HUNTERS GLEN40603 - 3741 HUNTERS GLEN40604 - 3745 HUNTERS GLEN40605 - 3749 HUNTERS GLEN40606 - 3753 HUNTERS GLEN40607 - 3757 HUNTERS GLEN40608 - 3925 PECAN CT40609 - 3921 PECAN CT40610 - 3917 PECAN CT40611 - 3913 PECAN CT40612 - 3912 PECAN CT40613 - 3908 PECAN CT40614 - 3904 PECAN CT40615 - 3900 PECAN CT40616 - 4025 CYPRESS CT40617 - 4021 CYPRESS CT40618 - 4017 CYPRESS CT40619 - 4013 CYPRESS CT40620 - 4012 CYPRESS CT40621 - 4008 CYPRESS CT40622 - 4004 CYPRESS CT40623 - 4000 CYPRESS CT40625 - GREENRIDGE40626 - CHERRYHURST40627 - 3617 ELM CT40628 - 3613 ELM CT40629 - 3609 ELM CT40717 - 3748 HUNTERS GLEN40718 - 3744 HUNTERS GLEN40720 - 3740 HUNTERS GLEN40721 - 3736 HUNTERS GLEN40722 - 3732 HUNTERS GLEN40723 - 3728 HUNTERS GLEN40724 - 3724 HUNTERS GLEN40725 - 3720 HUNTERS GLEN40726 - 3716 HUNTERS GLEN40727 - 3712 HUNTERS GLEN40751 - GREENRIDGE63833 - COUNTRY CLUB BLVD63835 - 5301 COUNTRY CLUB BLVD63838 - COUNTRY CLUB BLVD115719 - 6117 PORTCHESTER115720 - 6113 PORTCHESTER115721 - 6109 PORTCHESTER115722 - 6105 PORTCHESTER115723 - 6101 PORTCHESTER115724 - 6100 PORTCHESTER115725 - 6104 PORTCHESTER115726 - 6108 PORTCHESTER116735 - 6113 MERION WAY116736 - 6109 MERION WAY116737 - 6105 MERION WAY116738 - 6101 MERION WAY116739 - 6100 MERION WAY116740 - 6104 MERION WAY116741 - 6108 MERION WAY116742 - 6112 MERION WAY117158 - 3683 PEBBLE BEACH117159 - 3679 PEBBLE BEACH117160 - 3675 PEBBLE BEACH117161 - 3669 PEBBLE BEACH117162 - 3672 PEBBLE BEACH117163 - 3674 PEBBLE BEACH117164 - 3678 PEBBLE BEACH117165 - 3684 PEBBLE BEACH117423 - 3700 COLUMBIA117424 - 5709 TUCKATOE117425 - 5705 TUCKATOE117426 - 5701 TUCKATOE117427 - 5700 TUCKATOE117428 - 5704 TUCKATOE117429 - 5708 TUCKATOE117430 - 5712 TUCKATOE117431 - 3714 COLUMBIA117432 - 3718 COLUMBIA117433 - 3722 COLUMBIA117434 - 3726 COLUMBIA117435 - 3730 COLUMBIA117436 - 5709 PELICAN HILLS117437 - 5705 PELICAN HILLS117438 - 5700 PELICAN HILLS117439 - 5704 PELICAN HLS COMAL COUNTY 75381 - 5301 COUNTRY CLUB BLVD108306 - 3807 PEBBLE BEACH108307 - 3811 PEBBLE BEACH108331 - 3808 PEBBLE BEACH121896 - 5301 COUNTRY CLUB BLVD121897 - 3779 COLUMBIA121907 - 3739 COLUMBIA121908 - 3735 COLUMBIA121909 - 3731 COLUMBIA121910 - 3727 COLUMBIA121911 - 3721 COLUMBIA121912 - 3717 COLUMBIA121913 - 3713 COLUMBIA121927 - 5704 PELICAN HLS121928 - 5708 PELICAN HILLS121929 - 5709 MAHOGANY BAY121930 - 5705 MAHOGANY BAY121931 - 5701 MAHOGANY BAY121932 - 5700 MAHOGANY BAY121933 - 5704 MAHOGANY BAY121934 - 5708 MAHOGANY BAY121935 - 3800 COLUMBIA121936 - 3804 COLUMBIA377261 - COLUMBIA 40 7 2 4 40 7 2 3 40 6 0 0 40 6 0 3 3 4 8 0 0 108306 40618 40614 40 6 2 6 40 7 2 0 34755 4075 1 4060 8 406 0 5 3 4 8 0 1 34799 108307 40 7 2 1 40 6 0 2 40 7 2 2 407 1 7 406 0 7 40609 4061 7 4 0 7 1 8 4072 6 40727 40611 40 6 0 1 40 7 2 5 406 0 4 40 5 9 8 40 5 9 9 406 0 6 40610 108331 117165 117164 11716 2 117 4 3 5 11 7 4 3 6 1 1 7 4 3 7 117434 11716 0 117 4 2 7 117158 117159 116735 1 2 1 9 3 5 121936 117438 1219 2 9 12193 4 121932 121933 116737 116736 1219 2 8 11 5 7 2 0 11 5 7 1 9 1 2 1 8 9 7 12190 7 121910 1 1 7 4 3 2 121908 1219 0 9 1 2 1 9 1 2 12 1 9 1 1 117425 11 7 4 3 3 11 5 7 2 6 117163 117424 1174 2 6 1174 2 8 1 2 1 9 1 3 117430 117429 11 5 7 2 1 115722 40615 40616 1157231 1 7 4 3 1 116 7 3 9 1167 4 0 116742 40621 40 5 9 0 4 0 6 1 2 63838 40613 115 7 2 4 1 1 5 7 2 5 4 0 5 9 1 40622 40 5 9 7 4 0 6 2 0 40592 40629 40 6 2 8 40 5 8 9 4 0 5 8 8 40 5 9 6 40623 40 6 2 7 40 5 9 3 40 5 9 4 40 5 9 5 4062534548 63835 121927 75381 117439 63833 377261 121896 11 7 4 2 3 1219 3 0 1 2 1 9 3 1 1 1 7 1 6 1 11673 8 116741 40619 PELICAN HILLS BEAVER CRK CHE R R Y H U R S T STANDREWS SE N N E N C V VISTA D R C R O O K E D S T I C K W HISTLINGSTRAITS H UNTERSGLEN MA H O G A N Y BA Y P O R T C H E S T E R G R A Y S O N C L I F F TU C K A T O E P E B B L E BEACH BL A C K D I A M O N D C O U N T R Y C L U B B L V D B L A C K B U T T E O A K C T C E D A R C T C Y P R E S S C T MIMOSA C T P E C A N C T ME R I O N W A Y S CENIC DR S M O K E Y P O I N TE IH 35 N TAMAR O N GRE E N R I D G E S M O K E Y P L A T T E C H E S T N U T C T E L M CT COLUMBIA B R O O K L I N E C O V E R S C V STOR M K I N G K N O L L W O O D CHARLES T O N FOXBRIA R L N WIMBLED O N D R Comal County Guadalup e County 4 0 400 800 1,200200 Fe e t City of Sche rtz T he V illas at Blue bonne t Ridg e(PLPDD20220186) Proje ct Are a 200' Buffe r County Boundarie s Last Update : Nove m be r 16, 2022 “T he City of Sche rtz provide s this Ge og raphic Inform ation Syste m product "as is" w ithout any e x pre ss or im plie dwarranty of any kind including but not lim ite d to the im plie d warrantie s of m e rchantability and fitne ss for a particular purpose .In no e ve nt shall T he City of Sche rtz be liable for any spe cial, indire ct or conse que ntial dam age s or any dam ag e s w hatsoe ve r arising out of or in conne ctionwith the use of or pe rform ance of the se m ate rials. Inform ation publishe d in this product could include te chnical inaccuracie s or typog raphical e rrors. Pe riodicalchang e s m ay be m ade and inform ation m ay be adde d to the inform ation he re in. T he City of Sche rtz m ay m ake im prove m e nts and/or chang e s in the product(s)de scribe d he re in at any tim e .” City of Sche rtz, GIS Spe cialist: Bill Gardne r, g is@sche rtz.com (210) 619-1185 1 Emily Delgado From:Douglas Young <dagolfer389@outlook.com> Sent:Thursday, February 23, 2023 5:29 PM To:Emily Delgado Subject:COMMENTS ON PENDING ACTION - PLPDD20220186 As a registered voter in Schertz, I am writing to urge you to approve PLPD20220186 (Villas at Bluebonnet Ridge) as originally submitted without the Great North Walking Trail through the project site. I believe that the walking trail suggested by city staff would jeopardize the security of all residents in SCHA. The reason I object to the inclusion of the walking trail in the submission by Bluebonnet is that it’s inclusion will not allow the permanent seclusion of the Scenic Hills Subdivision and therefore prevent the permanent completion of the security for the Scenic Hills Subdivision and it’s 210 property owners in the Scenic Hills Community Association with the security they deserve. Thank you for your assistance and consideration in this matter. Douglas Young 3701 Hillside Schertz, TX January 24, 2023 Devin “Buck” Benson Spokesman for HABI, LLC 745 E Mulberry Avenue, Suite 550 San Antonio, Texas 78112 SUBJECT: SHCA support for PLPDD2022 -0186 Dear Buck: Per our previous discussions of the pending HABI development (PLPDD2022 -0186) in Schertz, TX, I am pleased to inform you that the Scenic Hills Community Association, Inc. Board of Directors and membership hereby asserts our support of this planned development. I am pleasantly encouraged by the willingness of your client (HABI, LLC) to engage in fruitful negotiations regarding this development and its effects on our community. I am proud to say that our community has collectively given our board the authority to grant our approval. Further, in my discussions with two other HOA presidents (Northcliffe and Fairways of Scenic Hills), I have been verbally advised that this project (PLPDD2022 -0186) has garnered their approval as well. We look forward to this addition to our neighborhood. Respectfully submitted, Gregory Sebold President, SHCA Board of Directors 4820 Scenic Drive, Schertz, TX 78108 Ord. No. 23-S-02 1 25 Acre Zone Change Request from Pre - Development District (PRE) to Planned Development District (PDD): The Villas at Bluebonnet Ridge Emily Delgado Planning Manager February 28, 2023 2 3 January 13th: 117 Public Hearing Mailers Sent and Notice Signs placed on property. February 8th: Public Hearing Notice published in San Antonio Express News Responses Received as of February 15th: Neutral:1 In Favor: 23 Opposed:20 4 5 The Villa’s at Bluebonnet Ridge-Proposed PDD •The proposed rezone from Pre-Development District is to Planned Development District (PDD) with a base zoning of Townhome District (TH). •The proposed development would consist of the following: –Gated Community / HOA Maintained –51 buildings •6 buildings with 3 units •45 buildings with 4 units –198 Units •Each unit will be its own townhome that could be sold separately •Each unit will be between 1,300 square feet and 1,400 square feet –7.52 acres of green space and amenities 6 The Villa’s at Bluebonnet Ridge-Proposed PDD •Each lot will have a 10-foot side setback if on the end or a 0’ setback of in the interior. •Proposed: 143 lots with a 25’ width and 55 lots with the 35’ width 7 The Villa’s at Bluebonnet Ridge-Proposed PDD •Parks & Amenities: –7.52 acres of green space and amenities –Proposed to include: a pavilion, playground for the community, a concrete walking path, a mail center with covered pavilion and additional parking spaces, a 0.45 acre fenced in private dog park, a 1.85-acre private picnic / trail / community garden area. A 0.30 of miscellaneous green spaces, and 4.01 acre of open space / easement. •Fire Suppression and Fire Walls: –The PDD states the following: “Due to the reduced side yard setbacks, each townhome within the Villas as Bluebonnet Ridge will have fire sprinklers, will require all A/C condensers to be in the rear yard, and exterior walls will be at least a minimum of a 1- hour fire rated.” •Additional Design Standards Proposed: –654 parking spaces proposed across the development –8’ masonry wall proposed along boundary with the Northcliffe neighborhood –20’ buffer in the rear yards adjacent to the Fairways at Scenic Hills, this 20’ buffer will include 1 tree in each yard and no structures, including sheds will be permitted 8 9 Changes from previous PDD proposal –In 2022 the applicant submitted a zone change request for a PDD with a base zoning of Multi-family / Apartments (R-4). The original proposal was for 220 units that would be developed as fourplexes. –On September 27, 2022 the application was denied by the City Council. During that meeting the City Council discussed concerns with the proposed density and discussed if the proposal was not apartments but instead townhomes. –The new proposal decreases the maximum number of units to 198 and is a townhome product rather than apartments. This change was made based on feedback received at the City Council meeting. 10 Changes from previous PDD proposal –On the application from 2022 it was noted that the applicant was working with the Parks Department in relation to a trail that is shown on the 2017 Schertz Transportation Plan-Trails Network. The proposed PDD indicated that the land would be dedication within the overhead utility easement to be utilized for a portion of the “Great Northern Trail”. –The current proposal no longer accounts for or proposes the dedication or construction of the walking trail within the overhead electrical easement. –At the January 10, 2023 City Council meeting there was a presentation in relation to trails, where City Council expressed their desire for trails within the City of Schertz and the importance of requiring trails to be constructed with developments. 11 Staff Analysis •The Schertz Sector Plan identifies the subject property as Single-Family Residential which encourages a mixture of residential housing types. The proposed PDD with the base zoning of Townhome would provide for a variety of housing types not currently in the area. •Additionally, the change from apartment to townhome is in line with the discussion that occurred at the previous City Council meetings. The current proposal reduces the overall density from the previously proposed zone change. •However, based on the City Council discussion on January 10th in relation to the trails, staff feels that the development should be required to dedicate and construct the trail per the 2017 Schertz Transportation Plan-Trails Network. 12 Recommendation •Staff Recommendation: –Staff recommends approval of the proposed zone change (Ord. No. 23-S-02) to Planned Development District (PDD) with a condition that per the 2017 Schertz Transportation Plan – Trails Network the proposed project would include the trail on all future exhibits and plans and construct the identified trail on the subject tract. •Planning & Zoning Commission Recommendation: –The Schertz Planning and Zoning Commission met on January 25, 2023 and voted to recommend that City Council approve the proposed zone change with a condition that the proposed project would include the trail on all future exhibits and plans by a 5-2 vote with Chairman Outlaw and Commissioner McMaster with the nay votes. Agenda No. 14.   CITY COUNCIL MEMORANDUM    City Council Meeting:February 28, 2023 Department:City Secretary Subject:Quarterly Investment Reports BACKGROUND Per the Public Funds Investment Act (PFIA) Section 2256.023 of the Government Code and Section IV Investment Reporting of the City's Adopted Investment Policy and Strategy, Investment Reports will be presented to te City Council no less than Quarterly.    Attachments Qtr 1 Investment Report  Qtr 2 Investment Report  Qtr 3 Investment Report  Qtr 4 Investment Report  Agenda No. 15.   CITY COUNCIL MEMORANDUM    City Council Meeting:February 28, 2023 Department:Finance Subject:Mayor and Council Compensation. (S. Gonzalez/J. Walters) BACKGROUND Ordinance 08-G-31 provides for annual pay adjustments based on the January Consumer Price Index (CPI) for the South Region. The CPI report for January was released mid-February and stated a CPI change of 6.9%. Per the ordinance, Council's compensation would be increased by that amount. The ordinance also states Council may decline any increases by notifying the City Manager.The pay change is planned to take effect March 17 and notification of decline should be by March 10, 2023. If no notification of decline is received, the council's pay amount will increase by 6.9%. GOAL N/A COMMUNITY BENEFIT N/A SUMMARY OF RECOMMENDED ACTION N/A FISCAL IMPACT Mayor total compensation would increase from $276.23 to $295.29 paid every two weeks. Councilmember total compensation would increase from $168.23 to $179.84 paid every two weeks.   RECOMMENDATION N/A Attachments Mayor & Council Compensation 2023  Date: 2/28/2023 From: Finance Department To: Mayor and Councilmembers Subject: Mayor and Council Compensation Ordinance 08-G-31 provides for annual pay adjustments based on the January Consumer Price Index (CPI) for the South Region. The CPI report for January was released mid-February. Below is a table show the CPI percentage change and the combined compensation and allowance amounts per pay period. 2022 2023 Mayor $ 276.23 $ 295.29 Council $168.23 $ 179.84 CPI 6.9% For the pay date of March 17, 2023, Mayor and Councilmember pay will be set to the 2023 amounts shown in the table. There will be no retroactive adjustment to the pay amount. Ordinance 08-G-31 allows for the Mayor or Councilmembers to opt out of the pay change by submitting a letter with this intent to the City Manager. If you would like to remain at your current pay level, please notify the City Manager by March 10, 2023. Thank you, James Walters Director of Finance