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FY 2023-24 Budget
FY 2023-2024 APPROVED BUDGET PROPERTY TAX RATE COMPARISON 2023-24 2022-23 Property Tax Rate:$0.4950/100 No-new-revenue $.04553/100 $.04526/100 No-new-revenue Maintenance & Operations Tax Rate:$0.3212/100 $0.3046/100 Voter-approval Rate:$0.4872/100 $0.4968/100 Debt Rate: $0.1548/100 $0.1480/100 CITY OF SCHERTZ FISCAL YEAR 2023-24 BUDGET COVER PAGE This budget will raise more total property taxes than last year's budget by $2,398,167 or 9.9% increase, and of that amount, $554,255 is tax revenue to be raised from new property added to the tax roll this year. The members of the governing body voted on the proposal to consider the budget as follows: FOR: AGAINST: PRESENT AND NOT VOTING: ABSENT: Councilmembers Mark Davis, Michelle Watson, Jill Whittacker, Michael Dahle, Allison Heyward, Tim Brown N/A N/A Councilmember David Scagliola Total debt obligation for the City of Schertz secured by property taxes: $ 96,572,010 CITY OF SCHERTZ 3 CITY OF SCHERTZ 4 CITY OF SCHERTZ 5 CITY OF SCHERTZ 6 CITY OF SCHERTZ 7 CITY OF SCHERTZ 8 CITY OF SCHERTZ 9 CITY OF SCHERTZ, TEXAS PROPOSED ANNUAL BUDGET PREPARED BY STEVE WILLIAMS, CITY MANAGER BRIAN C. JAMES, DEPUTY CITY MANAGER SARAH GONZALEZ, ASSISTANT CITY MANAGER JAMES P. WALTERS, FINANCE DIRECTOR BABETT MARTIN, ASSISTANT FINANCE DIRECTOR MIKE WALKDEN, FINANCIAL ANALYST FISCAL YEAR 2023-24 OCTOBER 1, 2023 - SEPTEMBER 30, 2024 MICHAEL DAHLE COUNCMEMBER PLACE 4 RALPH GUTIERREZ MAYOR MICHELLE WATSON COUNCILMEMBER PLACE 2 MARK DAVIS COUNCILMEMBER PLACE 1 JILL WHITTAKER COUNCILMEMBER PLACE 3 DAVID SCAGLIOLA COUNCILMEMBER PLACE 5 ALLISON HEYWARD COUNCILMEMBER PLACE 6 TIM BROWN COUNCILMEMBER PLACE 7 VISION OUR MISSION OUR CITY POLICY VALUES OUR CITY OPERATONAL VALUES OUR CITY CORE VALUES LEADING, IMPROVING, AND SERVING A LIVABLE, SUSTAINABLE AND FINANCIALLY SOUND COMMUNITY OUR COMMUNITY. SERVICE. OPPORTUNITY. 4. ATTRACTIVE COMMUNITY 5. ECONOMIC PROSPERITY 6. FISCALLY SUSTAINABLE 1. SAFE COMMUNITY 2. ESSENTIAL SERVICES 3. HIGH QUALITY OF LIFE 3. INNOVATIVE 4. PROACTIVE 5. SERVICE ORIENTED 1. SYSTEMS MANAGEMENT 2. ENGAGED WORKFORCE 1. DO THE RIGHT THING 2. DO THE BEST YOU CAN 3. TREAT OTHERS THE WAY YOU WANT TO BE TREATED 4. WORK COOPERATIVELTY AS A TEAM CITY OF SCHERTZ 10 TABLE OF CONTENTS 16EXECUTIVE SUMMARY GENERAL FUND SUMMARY REVENUES CITY COUNCIL CITY MANAGER MUNICIPAL COURT 311/CUSTOMER RELATIONS PLANNING & ZONING LEGAL SERVICES ECONOMIC DEVELOPMENT CITY SECRETARY NON-DEPARTMENTAL PUBLIC AFFAIRS ENGINEERING POLICE FIRE RESCUE INSPECTIONS NEIGHBORHOOD SERVICES 38 40 45 49 53 58 61 66 68 73 75 77 82 88 94 101 106 122POOLS EVENT FACILITIES LIBRARY INFORMATION TECHNOLOGY HUMAN RESOURCES FINANCE PURCHASING & ASSET MANAGEMENT FLEET SERVICES FACILITY SERVICES CITY ASSISTANCE COURT RESTRICTED INTEREST & SINKING FUND WATER AND SEWER SUMMARY BUSINESS OFFICE WATER & SEWER ADMINISTRATION CAPITAL RECOVERY- WATER CAPITAL RECOVERY- SEWER 130 135 141 146 150 155 161 166 169 171 177 178 183 188 196 199 125 CITY OF SCHERTZ 11 13 STREETS PARKS, RECREATION, & COMMUNITY SERVICES 111 11615ORGANIZATION CHART LETTER FROM CITY MANAGER 27 TABLE OF CONTENTS DRAINAGE SUMMARY REVENUES EXPENDITURES EMERGENCY MEDICAL SERVICES (EMS) SUMMARY REVENUES EXPENDITURES SCHERTZ ECONOMIC DEVELOPMENT CORPORATION SUMMARY REVENUES EXPENDITURES SPECIAL REVENUE FUNDS SPECIAL EVENTS PUBLIC, EDUCATIONAL, AND GOVERNMENT (PEG) ACCESS FUND HOTEL/MOTEL TAX PARK FUND 209 210 214 221 222 226 231 232 236 238 241 244 203 ROADWAY AREA 2 ROADWAY AREA 3 ROADWAY AREA 4 LIBRARY FUND HISTORICAL COMMITTEE CAPITAL IMPROVEMENT PROJECTS 253 256 259 262 266 269 247TREE MITIGATION ROADWAY AREA 1 250 CITY OF SCHERTZ 12 APPENDICES 279 202 213 225 235 The proposed budget for fiscal year 2023-24 was filed with the City Secretary on August 11, 2023 in accordance with the requirements of the City Charter. The proposed revenues in each of the funds meets or exceeds our proposed expenditures when utilizing excess reserves. There will be two public hearings for citizen input on August 15, 2023 and September 5, 2023. The proposed budget for the coming year lowers the overall City property tax rate from $0.4950 to $0.4872 per $100 of property valuation. Due to a decrease in the Maintenance & Operations (M&O) portion of the tax rate which is dedicated for city operations from $0.3470 to $0.3324 per $100 of valuation, the City was able to increase the Interest & Sinking (I&S) portion that pays the City’s debt, raising it from $0.1480 to $0.1548 per $100 of valuation. This M&O tax rate will help meet the City’s Budget Priority Goals for staff compensation adjustments, additional infrastructure projects emphasizing streets, and the addition of a few key positions along with other new expenditures. Staff proposes to raise salaries for all departments by 4.7% across the board for inflation. This number is based on the last 2 quarterly reports by the Bureau of Labor Statistics on the Employment Cost Index (ECI). This metric measures wages and benefits costs across the county based on private corporation jobs, civilian jobs, and state and local government jobs. The past 2 quarterly reports showed wages for state and local governments has grown by 4.7% each and is the basis for the adjustment recommendation. This ECI adjustment is proposed to take effect in October 2023 with the new budget. In addition to the proposed adjustments from the ECI, the primary goal for FY 2023-24 is to address compensation for employees. Turnover in the City is high and hiring is difficult due to non-competitive wages. Based on staff's review of target cities' wages in the area, there is strong indication Schertz is below market in the wages offered to employees. Working with City Council, the City has contracted with Public Sector Personnel Consultants (PSPC) to conduct a Classification & Compensation Study to adjust wages to get Schertz' positions to at least the market pay. Based on the original review by Staff, an estimated $2.6 million of adjustments could be needed, with $1.9 million showing in FY 2023-24 with the anticipated January 2024 wage adjustment. The final number will be based on the results of the survey. In FY 2023-24 the City is proposing authorizing the following additional positions: three Firefighters in preparation of the opening of proposed Fire Station #4, one Administrative Assistant for Engineering, one Part Time Records Clerk for the City Secretary, four Emergency Medical Technicians for EMS, and one Lead Clerk for Utility Billing. The City has an adopted goal of keeping a fund balance level of 26% of operating expenditures, and if over that target, must reduce the fund balance to 26% within 5 years. At this time it is estimated the General Fund will have a fund balance reserve equal to 29% of operating expenditures by the end of September 2024 and 26.4% at the end of September 2025. Key CITY OF SCHERTZ 13 AUGUST 11, 2023 TO: The Honorable Mayor and Councilmembers FROM: Steve Williams, City Manager SUBJECT: Adopted Budget for Fiscal Year 2023-24 expenditures to achieve this goal include the wage adjustments, the replacement cameras and TASER equipment for police, and the one-time withdraw from the fund balance of $1 million for street improvements. The Guadalupe County Tax Assessor valued the City’s total taxable value at $5,440,641,228. This is a 11.3% increase or $551,629,839 over last fiscal year. Commercial development has been strong with new permit revenue exceeding the budget for FY 2021-22 and FY 2022-23, but staff has been seeing a slowdown in new residential permits with revenue dropping from $588,000 in FY 2019-20 to an estimated $225,000 for FY 2022-23. Staff will be keeping an eye on new developments in FY 2023-24 to react appropriately based on economic changes. Sales taxes in the City of Schertz have experienced strong growth in the past few years averaging over 10% annual growth the past 3 years. Staff has been keeping an eye on the economy and the Federal Reserve. The Federal Reserve has stated their desire to curb inflation and has taken frequent action to slow down the economy. As a result, the target Federal Funds Rate is 5.25%- 5.5%. This directly affects mortgage lending rates and is believed to be affecting the slowdown of new residential construction. As such, while in FY 2022-23 the City is expected to see 10% growth in sales tax revenue, staff will forecast sales tax revenue for FY 2023-24 to be in line with the long-term average growth in Schertz of 7%. Regarding past bonds, in 2010, voters in the City of Schertz approved a bond package for the construction of additional baseball fields, a soccer complex, an animal adoption center, the relocation of the playscape, an indoor aquatic center, and infrastructure improvements to downtown Schertz. The only remaining project is the downtown/Main Street improvements which is proposed to start construction in FY 2023-24. In 2015, voters approved a bond package for the construction of Fire Station #3, FM 1103 road improvements and FM 1518 road improvements. Fire Station #3 has been completed and the funds for FM 1103 and FM 1518 have been sent to the Texas Department of Transportation to begin construction. In 2021, voters approved a bond package for the construction of Fire Station #4. These funds have been issued, the land has been purchased, and the project is currently in the design phase. It is currently projected to open in calendar year 2025. I would like to thank all Department Heads for their assistance in the development of this document. Special thanks are due to the following people for their critical roles in the completion of this budget: Deputy City Manager Brian James, Assistant City Manager Sarah Gonzalez, and Finance Department staff Babett Martin, Mike Walkden, and Finance Director James Walters. Lastly, I wish to thank the Mayor and City Council for your continued support and leadership. Together, we are providing vision and quality operations to the City while being good stewards of the resources our residents and businesses have provided. Sincerely, Steve Williams City Manager CITY OF SCHERTZ 14 CITY OF SCHERTZ 15 ORGANIZATIONAL CHART Council Appointed Officials Executive Team CityManagerSteveWilliams EMS ChiefJason Mabbitt Assistant City ManagerSarahGonzalez Deputy CityManagerBrian James City Council MunicipalCourtJudge CitySecretarySheilaEdmondson Directors Police ChiefJim Lowery Fire ChiefGreg Rodgers EconomicDevelopmentScott Wayman Planning &CommunityDevelopmentLesa Wood Public WorksLarry Busch EngineeringKathy Woodlee Internal ServicesDawniecia L.Hardin Trussell Parks &RecreationLauren Shrum Public AffairsLinda Klepper HumanResourcesJessica Kurz FinanceJames Walters LibraryMelissa Uhlhorn EXECUTIVESUMMARY EXECUTIVE SUMMARY GENERAL FUND Revenue: Revenues for FY 2023-24 Budget are expected to increase 3.9% from the FY 2022-23 year-end estimate. The largest contributor to this increase will be from property and sales taxes. The property taxes for FY 2022-23 are estimated to increase 5.8% and sales taxes are estimated to increase 7.0%. These increases are offset by a projected decrease in building permits and fees expected in FY 2023-24 as new development starts to slow down with the Federal Reserve tightening lending. Expenses: The overall FY 2023-24 Budget increased 13.0% from the FY 2022-23 year- end estimates. This includes wage increases based on the Classification & Compensation Study be implemented in January 2024, 4 new personnel and a 4.7% ECI increase. This budget also includes an additional $1 million in one-time funding for street preservation and maintenance. Another notable increase is related to the replacement of all in-car cameras, body worn cameras, and TASERs for the police department. The existing camera systems are being discontinued by the manufacturer and need to be replaced. Due to the lack of support for the existing system, all the devices need to be replaced at once. Due to this, staff is proposing a lease and service plan that will pay $550,000 annually for 5 years to cover the new system. City Council The Proposed FY 2023-24 Budget increases 23.8% from the FY 2022-23 year-end estimates for in anticipated CPI increases and expenditures related to a City Charter review process. City Manager The FY 2023-24 Budget decreases 14.8% from the FY 2022-23 year-end estimates. The decrease is due to transferring the personnel related to Economic Development services to their own department in the General Fund and the removal of the Assistant to the City Manager position. Municipal Court The FY 2023-24 Budget increased 8.9% from FY 2023-24 year-end estimates for the proposed wage adjustments. 311 Customer Service The FY 2023-24 Budget increases 6.2% from the FY 2022-23 year end estimates for the anticipated wage increases with no other changes to operation. Planning and Zoning The FY 2023-24 Budget increases by 41.0% from the FY 2022-23 year end estimate due to filling vacancies in the planner positions seen in FY 2022-23 and the anticipated wage increases for FY 2023-24. Legal Services The FY 2023-24 Budget increases 28.6% from the FY 2022-23 year end estimate. Staff has not needed to utilize legal services as much as past years and will continue to budget a downward trend if expenditures continue to fall. CITY OF SCHERTZ 17 Economic Development The FY 2022-23 Budget transfers expenditures previously located in the City Manager and Non- Departmental budgets. The personnel did increase with the proposed wage adjustments and the amount paid into the TIRZ increased based on development located in the designated area of the Crossvine development. City Secretary The FY 2023-24 Budget increases 14.6% from the FY 2022-23 year-end estimate from the anticipated wage adjustments and the addition of part time Records Clerk position to aid with the increasing open records requests. Non-Departmental The FY 2023-24 Budget decreases 17.0% from the FY 2022-23 year-end estimate by transferring the Tax Abatement/TIRZ line and the local flavor grant to the new Economic Development department and is offset by setting the contingency accounts to $480,000 total. Public Affairs The FY 2023-24 Budget increases 6.0% from the FY 2022-23 year-end estimates. The increase is caused by the anticipated wage adjustments. Engineering The FY 2023-24 Engineering Budget increased 31.7% from the FY 2022-23 year-end estimate for two new positions, inspector and engineer, and vehicle replacements. Police The FY 2023-24 Budget increases 14.8% from the FY 2022-23 year-end estimates. 5 school resource officers are added to the position, but due to the difficulty in hiring police officers they are added without funding in the budget. If hired, the contract with Schertz- Cibolo-Universal City ISD will be updated and funds will be added to the budget. The increase in the budget is due to the anticipated wage adjustments, the new lease/maintenance program to replace the body cameras, in-car cameras, and the TASERs that is estimated at $550,000 per year for 5 years, and an increase in vehicle replacement due to price increases for vehicles. Fire Rescue The FY 2023-24 Budget will increase 13.2% from the FY 2022-23 year-end estimate. This increase comes from adding 3 new captain positions, promoting 3 Firefighters to Fire Apparatus Operators (FAO) and from anticipated wage adjustments. Inspections The FY 2023-24 Budget increases 16.2% from the FY 2022-23 year-end estimate with the anticipated wage adjustments. Neighborhood Services The FY 2023-24 Budget increases 0.4% from the FY 2022-23 year-end estimate. Fewer capital purchases almost offset the anticipated wage adjustments. EXECUTIVE SUMMARY CITY OF SCHERTZ 18 Streets The FY 2023-24 Budget will increase 25.2% from the FY 2022-23 year-end estimate. Personnel increases with anticipated wage adjustments while staff has engaged contractors to resurface streets for the next year. Also being purchased is a asphalt lay down machine and a new truck. Parks The FY 2023-24 Budget will increase 0.7% from the FY 2022-23 year-end estimate. Personnel increases from the anticipated wage adjustment is mostly offset by fewer park improvements with the completion of existing projects. Pools The FY 2023-24 Budget will remain at the same level with no change in operations. Event Facilities The FY 2023-24 Budget will increase 14.5% from the FY 2022-23 year-end estimate for the anticipated wage adjustments. Library The Library FY 2023-24 Budget increases 7.6% from the FY 2022-23 year-end estimate with the anticipated wage increase. Library materials budget increases $15,000 and is offset in FY 2023-24 by fewer furniture replacements. Animal Services This budget was combined into the Police Department Budget. Information Technology The Information Technology FY 2023-24 Budget increases 9.6% from the FY 2022-23 year-end estimate. The increase is due to the anticipated wage adjustments, contractual software increases, and new server purchases for police officers’ virtual terminals. Human Resources The FY 2023-24 Budget will increase 13.7% from the FY 2022-23 year-end estimate from the anticipated wage increases and adding $20,000 in unused employee wellness program funds from FY 2022-23 for future use. Finance The FY 2023-24 Budget will increase 2.1% from the FY 2022-23 year-end estimate. The anticipated wage increases are partially offset by reclassifying the vacant Senior Accountant position as an Accountant. Purchasing & Asset Management The FY 2023-24 Budget reflects an increase of 6.5% from the FY 2022-23 year-end estimate to account for training related to new staff certifications and anticipated wage increases. Fleet Services The FY 2023-24 Budget will decrease 12.9% from the FY 2022-23 year-end estimate due to anticipated wage increases and full year funding for the new Internal Services Director position that was created mid-FY 2022- 23. CITY OF SCHERTZ 19 EXECUTIVE SUMMARY Facility Services The FY 2023-24 Budget increases 5.1% from the FY 2022-23 year-end estimates due to anticipated wage adjustments. The building maintenance funds were moved from Maintenance Services to Capital Outlay to better track emergency repairs and routine maintenance versus building renovations and large repair projects. City Assistance The FY 2023-24 Budget will increase $10,000 from the FY 2022-23 year-end estimate for the Senior Citizens meal program with increased attendance. Court Restricted Funds The FY 2023-24 Budget will increase $9,000 from the FY 2022-23 estimate to match the projected revenue for 2023-24. INTEREST & SINKING FUND Revenue: Revenues for FY 2023-24 increase 15.4% from the FY 2022-23 estimate with higher property values and an increase in the I&S tax rate. Expenses: The FY 2023-24 Budget will decrease 1.7% from the FY 2022-23 year-end estimate following the existing debt payment schedule. WATER & SEWER FUND Revenue: Revenues for FY 2023-24 Budget are expected to increase 1.8% from the FY 2022-23 year-end estimate due to account growth and fee increases. Expenses: The FY 2023-24 Budget increases 7.1% from the FY 2022-23 year-end estimates for anticipated wage adjustments and costs of water purchases and wastewater treatment increasing. Utility Billing The FY 2023-24 Budget increases 11.1% from the FY 2022-23 year-end estimate due to anticipated wage adjustments and the addition of a Lead Clerk position and higher credit card fees as more customers pay by phone or online. Administration The FY 2023-24 Budget will increase 8.2% from the FY 2022-23 year-end estimate due to anticipated wage adjustments and the purchase of a replacement Combo Vac Truck, system monitoring upgrades and easement acquisition for future infrastructure. Capital Recovery Fund - Water The FY 2023-24 Budget will be set at $55,748 for any professional services or studies that need to be completed. Capital Recovery - Sewer The FY 2023-24 Budget will be set at $67,248 for any professional services or studies that need to be completed. EXECUTIVE SUMMARY CITY OF SCHERTZ 20 DRAINAGE FUND Revenue: The FY 2023-24 Budget increase 4.7% from the FY 2022-23 year-end estimate from anticipated service additions. Expenses: The FY 2023-24 Budget will increase 6.9% from the FY 2022-23 year-end estimate for anticipated wage adjustments and equipment replacements and additional drainage channel maintenance projects. EMS FUND Revenue: Revenues for FY 2023-24 Budget are expected to increase 6.9% from FY 2022- 23 year-end estimates from an increase in transports and new service contracts with customer cities. Expenses: The FY 2023-24 Budget will increase 6.9% from the FY 2022-23 year-end estimate for anticipated wage adjustments and equipment replacements and additional drainage channel maintenance projects. SCHERTZ ECONOMIC DEVELOPMENT CORPORATION (SEDC) Revenue: The SEDC receives one-half of one percent of all sales and use tax generated within the City of Schertz. The revenue for FY 2023-24 is projected to increase by 9.3% from the FY 2023-24 year-end estimate. The increase is reflective of an increase in sales tax revenue of 7% and additional investment income makes up the remainder. Expenses: The SEDC funds are restricted to those expenses authorized by the Texas Local Government Code sections 501 and 505. The expenses for FY 2023-24 are projected to increase 7.2% to utilize the maximum allowed Marketing and Promotion dollars. Unspent Marketing and Promotion dollars may be carried forward per State statute for Marketing and Promotion purposes. Project Expenses: The SEDC is funding improvements to Lookout Rd, signalization, and upsizing of wastewater facilities in FY 2023-24. SPECIAL EVENTS FUND Revenue: Revenue budget has increased due to a trend increase to sponsorships and event participation. It is now set at $45,000 each year and any additional covers event expenses. Expenses: The Special Events Fund FY 2023-24 Budget is set at $45,000 with no change in operations. PUBLIC, EDUCATIONAL, AND GOVERNMENTAL ACCESS (PEG) FUND Revenue: Revenues for FY 2023-24 Budget are expected to decrease by $10,000 from the FY 2022-23 year- end estimates as the community moves away from cable. Expenses: The PEG Fund FY 2023-24 Budget decreased to $67,000 from the FY 2022- 23 year-end estimates with the continued implementation of the communication master plan. HOTEL MOTEL TAX FUND Revenue: Revenue for FY 2023-24 Budget is expected to decrease 16.1% from the FY 2022-23 year end estimates. FY 2022-23 received a lump sum of back taxes owed resulting in a higher revenue amount than is normal. Expenses: The Hotel Motel Tax Fund FY 2023-24 Budget increases 2.2% from FY 2022- 23 year-end estimate. Fewer building maintenance and projects offset increases in the City Support Services grant program. EXECUTIVE SUMMARY CITY OF SCHERTZ 21 HOTEL MOTEL TAX FUND Revenue: Revenue for FY 2023-24 Budget is expected to decrease 16.1% from the FY 2022-23 year end estimates. FY 2022-23 received a lump sum of back taxes owed resulting in a higher revenue amount than is normal. Expenses: The Hotel Motel Tax Fund FY 2023-24 Budget increases 2.2% from FY 2022- 23 year-end estimate. Fewer building maintenance and projects offset increases in the City Support Services grant program. PARK FUND Revenue: The revenue for FY 2023-24 Budget is expected to be $100,000 in anticipation of new development which will pay into the fund. Expenses: The FY 2023-24 Budget is set at $100,000 to utilize incoming funds for park improvements. TREE MITIGATION Revenue: The revenue for the FY 2023-24 Budget is expected to decrease 14.8% from 2022-23 year-end estimate following the previous years’ trends. Expenses: The FY 2023-24 Budget increases 7.1% from FY 2022-23 year-end estimate for additional tree planting. ROADWAY IMPACT FEE AREA 1 The FY 2023-24 Budget will be set at $5,000 for any professional services or studies that need to be completed. ROADWAY IMPACT FEE AREA 2 The FY 2023-24 Budget will be set at $58,000 for any professional services or studies that need to be completed and to reimburse developers for road construction. ROADWAY IMPACT FEE AREA 3 The FY 2023-24 Budget will be set at $5,000 for any professional services or studies that need to be completed. ROADWAY IMPACT FEE AREA 4 The FY 2023-24 Budget will be set at $3,000 for any professional services or studies that need to be completed. LIBRARY FUND Revenues: Revenue for FY 2023-24 is expected to increase $7,290 from the FY 2022-23 estimate with a withdraw from their fund balance. Expenses: The Library Fund’s FY 2023-24 Budget will increase $7,000 from the FY 2022- 23 year-end estimate for additional funding for library projects. HISTORICAL COMMITTEE Revenues: Revenue for FY 2023-24 will remain at the same funding allocation as FY 2022- 23. Expenses: The Historical Committee’s FY 2023-24 Budget will remain the same as the FY 2022-23 Budget. EXECUTIVE SUMMARY CITY OF SCHERTZ 22 BUDGET PROCESS STRATEGIC PLANNING At the beginning of the budget process, the City Council, City Management, and Department heads gather at a pre-budget retreat to discuss priorities and goals for the upcoming fiscal year budget. REVENUE PROJECTION The Finance Department staff develops revenue projections based upon trend analysis, anticipated changes in the local, state, and national economies, and discussions with other departments. The revenue projection is used to determine the financial limitations for the development of the budget. BUDGET DEVELOPMENT The budget was developed based on zero-base budgeting. Supplemental requests for capital items, new personnel, expanded services, or other items that do not fit within normal operating budgets are requested and justified separately. Upon completion of the proposed budget, department heads submit their budget request to the Finance Department for review, after which the budget is submitted to the City Manager for review and approval. The City Manager meets with his direct reports to discuss and adjust where needed. BUDGET The City Manager submits to the City Council a proposed operating budget City Councill meets for budget workshops to review the proposed budget and ensure it meets the priorities and goals set at the beginning of the budget process. PUBLIC HEARINGS/BUDGET ADOPTION Public hearings are held to inform the public about the proposed budget and tax rate and give citizens the opportunity to comment. The budget and tax rate take effect on October 1st. PUBLIC HEARINGS/BUDGET ADOPTION Public hearings are held to inform the public about the proposed budget and tax rate and give citizens the opportunity to comment. The budget and tax rate take effect on October 1st. CITY OF SCHERTZ 23 FY 2023-2024 BUDGET CALENDAR DATE ACTION March Pre Budget Retreat April Budget Kickoff- go over instructions for preparing budget, calendar and process. Departments submit Year end projections to Finance for review and approval. May Departments submit base budget and fee schedules to Finance for review and approval June City Management reviews budgets and supplemental requests July Fee Schedule is presented to Council. Tax rate is reviewed by Finance and City Manager. August Budget Retreat, Budget workshop, and first public hearing on Budget & Tax Rate. The preliminary Tax rate is set. September Second public hearing and vote on budget & tax rate October New budget in effect CITY OF SCHERTZ 24 BUDGET STRUCTURE GENERAL FUND The City’s primary governmental operating fund. Allocates property taxes, sales taxes, fees, fines, and other revenue sources to provide basic City services, such as Police, Fire, Street Maintenance, Park Maintenance, Building Inspections, Support Services, and others. It is used to account for all financial resources that cannot otherwise be accounted for in other funds that have specific purposes. INTEREST & SINKING FUND This fund is used to account for the accumulation of resources for and the payment of general long-term debt principal and interest on city debt. ENTERPRISE FUNDS Enterprise funds are used to account for governmental activities that are similar to those found in private businesses. The major revenue source for these enterprise funds is the rate revenue generated from the customers who receive the services provided. Expenses for these services are paid for through revenue generated from services provided. WATER & SEWER Fund tracks revenue and expenses for the City’s water, sewer, and solid waste functions and is managed by the Public Works Department. EMERGENCY MEDICAL SERVICES(EMS) Schertz Emergency Medical Services responds to 911 requests for ambulance service across a 220 square mile service area that includes the municipalities of Schertz, Cibolo, Live Oak, Marion, Santa Clara, Selma, Universal City, western Guadalupe County, Comal County Emergency Services District (ESD) #6 (about 25% of Comal County including the City of Garden Ridge); and a small portion of unincorporated Bexar County. DRAINAGE The Public Works Drainage Division is responsible for the maintenance and management of drainage channels, stormwater inlets, floodways, road rights-of-way, alleys, and compliance with regulations, as well as reviewing subdivision plans and the issuance of permits for development that might affect drainage infrastructure. SCHERTZ ECONOMIC DEVELOPMENT FUND The mission of the City of Schertz Economic Development Corporation (SEDC) is to grow the Schertz economy through Projects. CITY OF SCHERTZ 25 CAPITAL RECOVERY WATER The Capital Recovery program is designated to support future growth of population and commercial water and wastewater demands without an impact on existing customers while keeping bond supported programs to a minimum. CAPITAL RECOVERY SEWER The Capital Recovery program is designated to support future growth of population and commercial water and wastewater demands without an impact on existing customers while keeping bond supported programs to a minimum. BUDGET STRUCTURES SPECIAL REVENUE FUNDS Special revenue funds are used to account for the proceeds of certain specific revenue sources that are legally restricted to expenditures for specified purposes. CITY OF SCHERTZ 26 SPECIAL EVENTS The Special Events Fund is designated to monitor and manage funds appropriated to host community events, sponsored or co-sponsored, by the City of Schertz. PUBLIC, EDUCATIONAL, and GOVERNMENT (PEG) ACCESS FUND The PEG Fund is dedicated to provide communication infrastructure in the City. This will allow the City to better reach the citizens with necessary information. HOTEL/MOTEL TAX Revenues for the Hotel/Motel Fund are derived from a 7% tax on rooms rented in the City. These revenues are used to support Schertz as a destination location. PARK FUND The Park Fund is a special fund designated to monitor and manage funds for the management of the City of Schertz Urban Forest and capital improvements of the City of Schertz Park System. TREE MITIGATION Tree mitigation fund is a special fund that is derived from revenue from permits for tree removal issued in connection with a building permit, subdivision plan, and site plan. ROADWAY AREA 1-4 The Roadway Impact Fee program is designated to support future growth of population and commercial roadway demands while keeping bond supported programs to a minimum. LIBRARY FUND The purpose of the Library Advisory Board is to provide citizen input to the City of Schertz on Library policy and operation and to raise community awareness of the library and its services. HISTORICAL COMMITTEE This function is funded from the Special Events Fund by a transfer. The Historical Committee reviews locations for possible historic value and distributes books about the history of Schertz. GENERALFUND CITY OF SCHERTZ 28 TAX YEAR RATES AND PROPERTY EVALUATION YEAR RATE TOTAL TAXABLE VALUATION 2014 0.4974 $2,706,308,881 2015 0.4911 $3,029,803,646 2016 0.4911 $3,255,978,906 2017 0.4910 $3,413,283,122 2018 0.5146 $3,545,808,786 2019 0.5146 $3,761,245,673 2020 0.5146 $3,906,217,828 2021 0.5121 $4,068,009,738 2022 0.4950 $4,802,195,802 2023 0.4872 $5,440,641,228 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 Yr. Avg. $0 $1,000,000,000 $2,000,000,000 $3,000,000,000 $4,000,000,000 $5,000,000,000 $6,000,000,0006 5 4 3 2 1 0 Value inBillions TAXABLE ASSESED PROPERTY VALUES CITY OF SCHERTZ 29 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 10-yr. avg.0 0.1 0.2 0.3 0.4 0.5 0.6 RATE PER HUNDRED VALUATION 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023$0 $100 $200 $300 $400 $500 $600 TAX ON $100,000 VALUATION BY YEAR CITY OF SCHERTZ 30 REVENUESALL FUNDS Capital Recovery 2.5% Water & Sewer 27.4% Drainage 1.2% Schertz EMS 11.2% Special Revenue 1.1% SED Corporation 7.3% General Revenue 37.6% Debt Service 8.1% REVENUES - ALL FUNDS GENERAL REVENUE $47,390,488 DEBT SERVICES $9,335,000 WATER & SEWER $31,504,800 DRAINAGE $1,376,623 SCHERTZ EMS $12,860,223 CAPITAL RECOVERY $2,846,435 SPECIAL REVENUE $1,228,450 HISTORICAL COMMITTEE $11,750 SED CORPORATION $8,407,000 TOTAL $114,960,769 CITY OF SCHERTZ 31 EXPENDITURESALL FUNDS Operation Support & Services 21.4% Capital Expenses 5.6% Debt Services 9.4% Personnel 36.5% Supplies 1.5% Professional & City Services 8.5% Utility & Maintenance Services 17.1% EXPENDITURES - ALL FUNDS DEBT SERVICE $11,115,131 PERSONNEL $43,408,010 SUPPLIES $1,753,378 PROFESSIONAL & CITY SERVICES $10,063,223 UTILITY & MAINTENANCE SERVICES $20,372,344 OPERATION SUPPORT & SERVICES $25,454,391 CAPITAL EXPENSE $6,658,070 TOTAL $118,824,547 CITY OF SCHERTZ 32 FUND BALANCE - ALL FUNDS Estimated Beginning Balance 10/01/2023 FY 2024 Adopted Revenues FY 2024 Adopted Expenditures Budgeted Ending Balance 09/30/2024 GENERAL FUND 16,615,339 (2,564,504)14,050,835 SPECIAL EVENTS 160,285 --160,285 PUBLIC, Ed., & GOV. FUND 46,766 --46,766 TAX I&S FUND 429,526 --429,526 WATER & SEWER FUND 27,906,968 262,899 28,169,867 CAPITAL RECOVERY FUND 7,042,124 1,799,004 8,841,128 DRAINAGE FUND 564,400 (217,584)346,816 EMS FUND 4,247,711 (780,613)3,467,098 SEDC FUND 19,528,838 (4,578,053)14,950,785 HOTEL TAX FUND 3,162,859 640,635 3,803,494 PARK FUND (37,902)--(37,902) TREE MITIGATION FUND 678,495 10,750 689,245 LIBRARY BOARD 64,274 (8,000)56,274 HISTORICAL COMMITTEE 18,608 2,500 21,108 ALL FUNDS 80,428,292 (5,432,966)74,995,326 CITY OF SCHERTZ 33 GENERAL FUNDEXPENDITURES BY FUNCTION Health 0.0% Public Environment 5.4% Internal Services 17.8% Miscellaneous 3.2% Public Safety 44.3% General Government 16.6% Parks and Culture 9.9% GENERAL FUND EXPENDITURES - BY FUNCTION PUBLIC SAFETY $23,553,629 GENERAL GOVERNMENT $8,281,168 HEALTH -- PARKS & CULTURE $4,942,072 PUBLIC ENVIRONMENT $2,720,161 INTERNAL SERVICES $8,880,296 MISCELLANEOUS EXPENSE $1,577,666 TOTAL $49,954,992 CITY OF SCHERTZ 34 REVENUES GENERAL FUND Inter-Jurisdictional 2.5% Inter-Fund Transfers 6.8% Miscellaneous 3.9% Taxes 44% Sales Tax 29.9% Franchises 5.9% Permit/License Fee 11%Municipal Court 10.9% GENERAL FUND - REVENUES TAXES $20,838,000 SALES TAX $14,180,000 FRANCHISES $2,795,000 PERMITS/LICENSE/FEES $2,921,580 MUNICIPAL COURT $413,980 INTER-JURISDICTIONAL $1,196,684 INTER-FUND TRANSFERS $3,204,837 MISCELLANEOUS INCOME $1,840,407 TOTAL $47,390,488 CITY OF SCHERTZ 35 EXPENDITURES GENERAL FUND Utility & Maintenance Services 4.9%Operation Support & Services 11.1% Capital 4.9% Personnel 66.3% Supplies 2.0% Professional & City Services 44% GENERAL FUND - EXPENDITURES PERSONNEL $33,104,592 SUPPLIES $980,373 PROFESSIONAL & CITY SERVICES $4,093,290 UTILITY & MAINTENANCE SERVICES $3,772,019 OPERATION SUPPORT & SERVICES $5,542,494 CAPITAL EXPENSE $2,462,224 TOTAL $49,954,992 FUND: 101 GENERAL FUND DESCRIPTION The General Fund is the City’s primary governmental operating fund. It is used to account for all financial resources that cannot otherwise be accounted for in other funds that have specific purposes, such as the Water and Sewer Fund or Special Revenue Funds. All general tax revenues, franchise fees, permits, interest income and any other fees that are not allocated by law or otherwise restricted to other funds are accounted for in this fund. It accounts for the majority of City services, like Police, Fire, Parks, Community Development, Library, and internal support services. CITY OF SCHERTZ 36 GENERAL FUND CITY OF SCHERTZ 37 PROGRAM JUSTIFICATION AND ANALYSIS Revenue:Revenues for FY 2023-24 Budget are expected to increase 3.9% from the FY 2022-23 year-end estimate. The largest contributor to this increase will be from property and sales taxes. The property taxes for FY 2022-23 are estimated to increase 5.8% and sales taxes are estimated toincrease 7.0%. These increases are offset by a projected decrease in building permits and fees expected in FY 2023-24 as new development starts to slow down with the Federal Reserve tightening lending. This budget also includes an additional $1 million in one-time funding for street preservation andmaintenance. Another notable increase is related to the replacement of all in-car cameras, body worn cameras, and TASERsfor the police department. The existing camera systems are being discontinued by the manufacturer andneed to be replaced. Due to the lack of support for the existing system, all the devices need to be replaced at once. Due to this, staff is proposing a lease and service plan that will pay $550,000 annually for 5 years to cover the new system. CITY OF SCHERTZ 38 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 39 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 40 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 41 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 42 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 43 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 44 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 45 DEPARTMENT: 150 CITY COUNCIL FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION The Schertz City Council is made up of eight elected officials. City residents currently elect a Mayor and seven Council members at-large. Mayors Pro Tempore shall be appointed by a majority vote of the City Council following a properly made motion to appoint a member who is both: (a) Eligible to serve as Mayor Pro Tempore; (b) Is, at the time of the motion, a Councilmember in good standing. The Mayor and seven City Council members are paid a modest stipend. The Schertz City Council is the City's legislative body. It sets policies, approves budgets, determines tax rates and passes ordinances and resolutions to govern the City. Council also appoints citizen volunteers to approximately 10 City advisory boards, committees, and commissions; and appoints and supervises the performances of the City Manager, City Secretary, City Attorney, and Municipal Court Judges. ORGANIZATIONAL CHART CITIZENS CITY COUNCIL PERFORMANCE INDICATORS CITY OF SCHERTZ 46 CITY COUNCIL PROGRAM JUSTIFICATION AND ANALYSIS The Proposed FY 2023-24 Budget increases 23.8% from the FY 2022-23 year- end estimates for in anticipated CPI increases and expenditures related to a City Charter review process. CITY OF SCHERTZ PAGE 2 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 47 CITY OF SCHERTZ 48 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 DEPARTMENT: 151 CITY MANAGER FUND: 101 GENERAL FUND Policy Value: Fiscally Sustainable Oversee the management of the City budget. Operational Value: Systems Management Develop strategic plans and systems to meet the many diverse needs of the community. Develop management systems for efficient and effective use of resources. Operational Value: Proactive Respond effectively and timely to City Council requests. Operational Value: Service Oriented Oversee special projects and studies commissioned by City Council. Formulate and submit recommended actions concerning policy issues to City Council. Operational Value: Engaged Workforce Recruit, retain, and develop talented staff. Cultivate positive work environment with autonomy, mastery, and purpose. Uphold the values as outlined in the Strategic Plan. DEPARTMENT DESCRIPTION The City Manager serves under the policy direction of the City Council and provides the leadership for implementation of the City Council’s policies to ensure residents, businesses, and visitors receive exceptional City services and that Schertz maintains a high quality of life. The City Manager’s Office facilitates the coordination and implementation of City Council policy direction, provides administration of the organization, and develops methods for the effective and efficient delivery of services to the community. GOALS FOR FY 2023-24 Strategic Plan Emphasis Project Focus for FY 2023-24 CITY OF SCHERTZ 49 ORGANIZATIONAL CHART MAYOR & CITY COUNCIL CITY MANAGER CITY OF SCHERTZ 50 CITY MANAGER PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget decreases 14.8% from the FY 2022-23 year-end estimates. The decrease is due to transferring the personnel related to Economic Development services to their own department in the General Fund and the removal of the Assistant to the City Manager position. CITY OF SCHERTZ 51 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 52 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 DEPARTMENT: 152 MUNICIPAL COURT FUND: 101 GENERAL FUND Promote respect for the administration of justice through improvements in the Court's customer service and the physical attributes of the Municipal Court building.. Implement the use of new technology and other innovative practices to maintain efficient and security. Promote traffic safety by focusing attention on fair and impartial punishment for those individuals charged in this court. Seek input from personnel to maintain a positive work environment. Renovate front counter to include and efficient workstation for clerks and defendants. Implement the use of new technology and other innovative practices to DEPARTMENT DESCRIPTION Municipal Court represents the judicial branch of the City’s government; the Mayor and City Council serve as the executive and legislative branches. Municipal Court has jurisdiction over all Class C misdemeanors and City ordinances. The staff of Municipal Court has various functions and responsibilities. The judge presides over all trials (jury and non-jury) and other court proceedings such as arraignments and show cause hearings. The judge also has magistrate duties (signing arrest warrants and juvenile warnings as well as visiting arrested individuals at the jail). The judge issues processes such as subpoenas, summons, and warrants and completes other administrative duties for the court functions and staff. The court clerks are the administrative arm of the Municipal Court. The clerks are responsible for seeing that all of the court’s papers are accurate, orderly, and complete. The clerk’s primary responsibilities include processing citations, summons, complaints, warrants, past due letters, and show cause hearing letters. The clerks maintain the court’s docket and coordinate case scheduling. The clerks directly interact with the public, providing all services needed including explaining to defendants the court procedures and their options. Clerks also receive payments, summon potential jurors, and ensure juror payment. Assist the judge with open records requirements, report convictions, Drivers Safety Course and alcohol violations to the Texas Department of Public Safety, assist the Marshal Officer’s with warrants, and complete all required accounting reports. The prosecutor’s duties include preparing and presenting the State’s case at all municipal court trials, preparing and drafting complaints, arranging for the appearance of State’s witnesses and requesting dismissal of cases under the appropriate circumstances. GOALS AND OBJECTIVES Project focus for FY2023-24 maintain efficient and security. CITY OF SCHERTZ 53 CITY OF SCHERTZ 54 CITY MANAGER ASSISTANT CITY MANAGER DEVELOPMENT FINANCE BILLING OFFICE MUNICIPAL COURT MUNICIPAL COURT ORGANIZATIONAL CHART PERFORMANCE INDICATORS CITY OF SCHERTZ 55 MUNICIPAL COURT PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget increased 8.9% from FY 2023-24 year-end estimates for the proposed wageadjustments. CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 56 CITY OF SCHERTZ 57 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 DEPARTMENT: PUBLIC AFFAIRS DIVISION: 153 311/CUSTOMER RELATIONS FUND: 101 GENERAL FUND Policy Value: Essential Services Increase easy public access to city services and information Reduce or eliminate abandoned or misrouted calls or inquiries Policy Value: Attractive Community Provide an easy and quick way to report issues across the city to ensure public roads, sidewalks, parks, buildings, etc. Are maintained and remain attractive and safe for residents/visitors Policy Value: High Quality of Life Communicate consistent, accurate, and timely information about city services, programs, and events to all callers and online inquires Update the 311/Customer web page for ease of use and access for residents to ask questions and submit issue or complaint inquiries Continue to promote the Keep It Nice Schertz campaign to encourage residents to be the eyes and ears of the city and report any issues they may see across the city Update and add to the Frequently Asked Questions page on the website Research chat or text functions for enhanced customer service DEPARTMENT DESCRIPTION Under the umbrella of Public Affairs, 311 Customer Care connects callers with specially trained customer service representatives ready to assist with City service requests -- potholes, stray animals, streetlights out, trash collection, special events and all other City requests. This division is under the supervision of the Communications Manager. GOALS FOR FY 2023-24 Strategic Plan Emphasis Project focus for FY 2023-24 CITY OF SCHERTZ 58 CUSTOMERRELATIONS/311 PUBLIC AFFAIRS CITY MANAGER ASSISTANT CITY MANAGER ORGANIZATIONAL CHART CITY OF SCHERTZ 59 CUSTOMER RELATIONS/311 PERFORMANCE INDICATORS PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget increases 6.2% from the FY 2022-23 year end estimates for the anticipated wage increases with no other changes to operation. CITY OF SCHERTZ 60 CITY OF SCHERTZ OPERATING BUDGET2023-2024 DEPARTMENT: PLANNING AND COMMUNITY DEVELOPMENT DIVISION: 154 PLANNING AND ZONING FUND: 101 GENERAL FUND Operational Value: Service Oriented, Systems Management Continue to assist property owners, developers, and engineers through ourdevelopment process through timely and thorough project review. Continue to do proactive updates to the website to provide improved customer service by updating flowcharts, providing information on currentresidential and commercial developments, providing information guides on how to apply for planning applications, and providing information on public hearing on the city’s webpage. Continue to proactively provide regular updates to the website feature “What’s Developing in Schertz” to ensure residents are provided information on current development projects within the city. Promote staff development including continued education and cross training to provide outstanding customer service and provide staff with growth opportunities. Policy Value: Safe Community, High Quality of Life, Attractive Community Review and update the Comprehensive Land Plan for the City, which will shape the future of Schertz to meet the desires, goals and core service policy values of the residents. Continue to reevaluate and modify regulations within the Schertz Unified Development Code to accommodate the evolving needs of our residents, make the development process more efficient and effective and ensure a properly planned safe community. Implement the Joint Land Use Study Strategies to promote compatibility of land uses and development with the long-range goals of Randolph AFB. Operational Value: Service Oriented Completed weekly updates to the website feature, “What’s Developing in Schertz”, to provide information on new residential subdivisions and new commercial sites currently under construction to improve public relations and transparency, while providing useful, accessible information to the public. DEPARTMENT DESCRIPTION The Planning & Zoning Division ensures quality development within the City limits and the Extraterritorial Jurisdiction through an efficient, consistent, unbiased, and effective development review process. Division responsibilities include the review and processing of development projects, such as commercial site plans, plats, zone changes, specific use permits, and annexations. The Division also researches and develops long- range plans and goals to help guide the future of our city; and creates development codes to tailor our regulations around citizen, businesses, and developer needs and city goals for a high quality of life and attractive community. The Division frequently collaborates with other departments within the city, including Engineering, Fire, and Inspections, as well as other governmental agencies, in order to provide guidance and staff recommendations to the City Council, Planning and Zoning Commission, Board of Adjustment, and the Capital Improvements Advisory Committee to help them best serve the residents of Schertz. GOALS FOR FY 2023-24 Strategic Plan Emphasis ACCOMPLISHMENTS CITY OF SCHERTZ 61 CITY OF SCHERTZ 62 PLANNING &ZONING INSPECTIONS CITY MANAGER DEPUTY CITYMANAGER PLANNING ANDCOMMUNITYDEVELOPMENT NEIGHBORHOODSERVICES PLANNING AND ZONING Policy Value: Safe Community, High Quality of Life, Attractive Community Received the 2022 Certificate of Achievement for Planning Excellence by the American Planning Association – Texas Chapter which recognizes a commitment to professional planning by City Administration, Elected and Appointed Officials and exemplary professional standards demonstrated by the Planning Department for the ninth year in a row. Maintained the partnership with Joint Base San Antonio (JBSA). Participated in the JBSA Technical Working Group for their Regional Compatible Use Plan update, to be completed in 2023/2024. Completed UDC amendments in relation to Article 5 Section 21.5.2 Zoning Districts Established, Article 5 Section 21.5.5 Statement of Purpose and Intent for Residential Developments, Article 5 Section 21.5.11 Specific Use Permits, Article 9 Section 21.9.7 Landscaping, Article 10 Parking Standards, specifically in relation to parking space size, parking ratios for Multifamily, Condominium, or other similar use, and stacking requirements for financial institutions, Article 14 Section 21.14.3 Additional Design Standards. ORGANIZATIONAL CHART CITY OF SCHERTZ 63 PLANNING AND ZONING PERFORMANCE INDICATORS PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget increases by 41.0% from the FY 2022-23 year end estimate due to filling vacancies in the planner positions seen in FY 2022-23 and the anticipated wage increases for FY 2023-24. CITY OF SCHERTZ 64 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 65 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 66 MAYOR & CITY COUNCIL LEGAL SERVICES DEPARTMENT: 155 LEGAL SERVICES FUND: 101 GENERAL FUND To provide expert legal counsel on proposed ordinances. To attend all city council meetings, planning and zoning, and other meetings as needed and provide timely legal advice on proposed ordinances and related items. To represent the City in litigation. Prepare legal documents for City contracts and agreements. To provide counsel on strategic issues that will be of the most benefit the City. DEPARTMENT DESCRIPTION The City Attorney is the legal advisor to City Council and City Council’s appointees, boards, commissions, committees, and staff. In addition, the City Attorney represents the City in all court cases where the City has an interest. Responsibilities of the City Attorney include providing legal advice to City Council, appointees, managers, boards, commissions, and committees in all legal matters; providing litigation and legal transaction services for the City and its enterprises; representing the City and its enterprises in employment matters; and reviewing, updating and maintaining the City Code. GOALS AND OBJECTIVES ORGANIZATIONAL CHART PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget increases 28.6% from the FY 2022-23 year end estimate. Staff has not needed to utilize legal services as much as past years and will continue to budget a downward trend if expenditurescontinue to fall. CITY OF SCHERTZ 67 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 68 DEPARTMENT: 156 ECONOMIC DEVELOPMENT FUND: 101 GENERAL FUND The Economic Development Corporation focus on creation and retention of valuable, primary jobs and infrastructure improvements. We also look to engage the workforce to be innovative and proactive in our participation in the success of these projects. Policy Value: Promote Economic Development Provide supportive tax base to balance increasing residential growth. Generate investments in undeveloped areas and improve quality of life. Promote economic development opportunities for high valued employers of all sizes. Conduct incentive application analysis and engage in business recruitment. Grant 7 new projects during the Fiscal Year 23-24 Improve Economic Prosperity through Quality Developments, providing jobs that provide a High Quality of Life. Endorse programs to benefit small business Participating in 2 infrastructure projects that will provide Essential Services. Lead a discussion by participating with businesses to explore innovative ways in which the company can conserve natural resources. Engage public utilities to assist business success. Participate in 6 events to attract new businesses to the city. DEPARTMENT DESCRIPTION The Economic Development Corporation helps to provide a supportive tax base and generate investment in undeveloped areas to improve quality of life. The City and the Corporation share the same objectives with a focus on infrastructure and our mission statement that has been adopted by the Board of Directors states that we grow the City of Schertz’s economy through projects. The department consists of four personnel and caters to the needs of 1,100 businesses and stakeholders. GOALS FOR FY 2023-24 Strategic Plan Emphasis Project focus for FY 2023-24 CITY OF SCHERTZ 69 ECONOMIC DEVELOPMENT ORGANIZATIONAL CHART PROGRAM JUSTIFICATION AND ANALYSIS Proactively manage our fiscal resources to be sustainable for future project considerations. CITY OF SCHERTZ 70 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 71 DEPARTMENT: 164 CITY SECRETARY FUND: 101 GENERAL FUND Operational Value: Systems Management The goals and objectives of the City Secretary’s Department for the fiscal year 2023-2024 are to provide the following services with greater transparency and efficiency for the Mayor, City Council, City Staff, and the residents of Schertz. Operational Value: Innovative Creating new processes for records governance to ensure minimum compliance with state statutes as they relate to records management and the Texas Public Information Act. Creating new system for the management and administration of Ordinances and Resolutions. Creating new systems for managing alcohol permits and volunteers on boards, commissions, and committees. Hiring of part-time Records Management Coordinator to create and implement standardized records management processes to meet standards set forth by state statute. This position will provide processes and related training for the identification, maintenance, retention, security, electronic storage, disposition, and preservation of City records. The role of this position is to ensure compliance, increase transparency, and mitigate legal risk for the City. Automate the Public Information requests using a new software platform. This will enhance transparency, increase efficiency for retrieving and compiling responsive documentation, tracking requests, and minimize legal risk by ensuring quality responses and maintaining compliance. Upgrade Destiny Software for the preparation of Agendas, agenda packets, and minutes for public meetings. Create a new database for better management of Ordinances and resolutions to ensure accurate assignment and description. This will greatly enhance the ability to research documented changes to city governance documents. DEPARTMENT DESCRIPTION The position of City Secretary is a statutory position required by State law and the City Charter. The City Secretary’s Office functions as a primary contact for citizens seeking information regarding the community, supports the City Council in the fulfillment of their duties and responsibilities as elected officials and provides daily assistance to all city administrative departments. The City Secretary serves as a member of the City Management Team and oversees the many functions of the City Secretary’s Office, including election administration, record management and preservation and Council Services. The City Secretary’s Department supports, facilitates and strengthens the City of Schertz governmental process by recording all laws, resolutions, and ordinances approved by the City Council, preparing City Council agendas and giving notice of such meetings, countersigning or notarizing, as applicable, all contracts, commissions, and licenses, providing public information according to state guidelines, delivering continuity to the City of Schertz government by recording its legislative actions, both contemporary and archival, and serving as historian for the City, safeguarding and enriching the municipal election and records management processes, and assisting the City Council in fulfilling their goals. GOALS FOR FY 2023-24 Strategic Plan Emphasis Project focus for FY 2023-24 CITY OF SCHERTZ 72 Create new database for issuance and monitoring of Alcohol permits for businesses. This will greatly enhance the tracking of permits issued for businesses, provide an automated process for sending renewals and invoices, and ensure greater compliance.Create a new database for the management of the City of Schertz Boards and Commissions. This will provide the Board Bylaws, and Board Member documents such as, application materials, training certificates, appointment and reappointment data, contact information. Document processes for Election administration to ensure transparency, compliance, and consistencyacross three counties. BILLING OFFICE FINANCE MAYOR & CITY COUNCIL MUNICIPAL COURT CITY SECRETARY ORGANIZATIONAL CHART PERFORMANCE INDICATORS CITY OF SCHERTZ 73 CITY SECRETARY PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget increases 14.6% from the FY 2022-23 year-end estimate from the anticipated wage adjustments and the addition of part time Records Clerk position to aid with the increasing open records requests. CITY OF SCHERTZ 74 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 75 DEPARTMENT: 167 NON-DEPARTMENTAL FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION This department accounts for expenses and payments that are not specific to an individual function/department. Items in this department include city insurance, appraisal district contracts, contingency, and the emergency medical services contract. PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget decreases 17.0% from the FY 2022-23 year-end estimate by transferring the Tax Abatement/TIRZ line and the local flavor grant to the new Economic Development department and is offsetby setting the contingency accounts to $480,000 total. CITY OF SCHERTZ 76 CITY OF SCHERTZ OPERATING BUDGET2023-2024 DEPARTMENT: 170 PUBLIC AFFAIRS FUND: 101 GENERAL FUND Policy Value: Essential Services Engage with residents about city services, programs, and policies in a manner designed to build trust and understanding in local government to achieve and maintain status as the primary source of information for City government activities. Disseminate accurate and timely information to residents and the media during times of crisis incidents/emergency. Policy Value: Attractive Community Develop effective marketing and communication plans featuring approved branding that highlight our high quality of life and the numerous opportunities that ensure the joy and enrichment of our citizens’ lives and reflects a positive image for the City of Schertz. DEPARTMENT DESCRIPTION The Public Affairs Department is responsible for establishing and maintaining internal and external communications with Schertz residents and city employees. Emphasis is placed on engaging with residents about city services, programs, and policies in a manner designed to build trust and understanding in local government. Public Affairs accomplishes this through Schertz Magazine, use of social media, advertising, production of city videos, media relations, City Headlines, and Schertz.com website. The department also captures photos/video of City events and activities, designs City marketing materials, social media/print graphics, logos, etc., and maintains the Schertz brand to ensure consistency and promote a positive public perception of the city. Public Affairs publishes Schertz Magazine monthly with 16,000 copies printed; including 15,000+ direct mailed to households in Schertz and over 500 distributed to local businesses. The magazine is the number one source of information for Schertz residents according to the past three citizen surveys. The department serves an internal audience of over 400 employees, elected and appointed officials, as well as an estimated city population of 44,000+. Operations of 311/Customer Care are maintained under the umbrella of Public Affairs. GOALS FOR FY 2023-24 Strategic Plan Emphasis Evaluate where and how the city’s communications and engagement resources, processes, strategies and materials may need to be improved or enhanced for better community stakeholder awareness and engagement. Review the Schertz.com website to prepare for, develop, and launch a redesigned website that will enhance resident awareness and understanding of city government activities. Perform the 2023 Citizen Satisfaction Survey. Coordinate, develop, and implement a comprehensive recruitment campaign in conjunction with HR and Public Safety to attract top quality talent to fill vacant positions. Project focus for FY 2023-24 CITY OF SCHERTZ 77 CUSTOMERRELATIONS/311 PUBLIC AFFAIRS CITY MANAGER ASSISTANT CITY MANAGER PUBLIC AFFAIRS ORGANIZATIONAL CHART PERFORMANCE INDICATORS CITY OF SCHERTZ 78 PUBLIC AFFAIRS PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget increases 6.0% from the FY 2022-23 year-end estimates. The increase is caused by theanticipated wage adjustments. CITY OF SCHERTZ 79 CITY OF SCHERTZ 80 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 81 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 82 DEPARTMENT: 173 ENGINEERING FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION The Engineering Department serves as technical advisor to the City Manager, City Council, Executive Staff, and other City departments. Engineering collaborates with Public Works, Planning and Community Development, Economic Development, Parks and Recreation, and other departments, citizens, developers, and other governmental agencies in order to effectively plan and implement infrastructure improvement and development for the organized growth of the City. Engineering works with Public Works and Finance to development and implement the City's Capital Improvement Programs for water, wastewater, streets, and drainage. That responsibility includes the development and maintenance of infrastructure master plans; the prioritization of projects; the identification and procurement of project funding; and the management of the design and construction of necessary infrastructure. The Engineering Department reviews applications for public and private land development for conformance with adopted engineering standards, policies, codes, and infrastructure master plans. Engineering Inspectors ensure that the construction of public infrastructure – both privately and publicly constructed – follows appropriate standards and specifications. Ensuring compliance promotes a safe community in which the essential services of the provision of water, wastewater, transportation, and drainage are available and arranged for fiscal sustainability.The Engineering Department creates and maintains standard construction details, technical specifications, and design guidelines. The Transportation Safety Advisory Commission (TSAC) is staffed by the Engineering Department. The TSAC is a Commission that hears citizen input and traffic and transportation safety concerns; considers transportation issues; and makes recommendations to City Council regarding traffic and transportation safety and other related matters throughout the City. Policy Value: Essential Services and Safe Community Assists with the creation and updating of capital improvement plans and prioritizations of projects to plan for and accommodate future community needs. Provides technical expertise to plan; prioritize; manage; and construct critical infrastructure projects for water, waste water, drainage, and roadways to provide quality basic services for residents current and future needs. Create; maintain; and update as needed standard construction details, technical specifications, and design guidelines to create a well built and well planned environment. Inspect infrastructure projects to ensure compliance with the standard construction details, technical specifications, codes and design guidelines. Policy Value: Attractive Community and High Quality of Life Create and update a Pavement Preservation Program (called “SPAM”) to repair and maintain city roadways in good condition. Provide technical assistance for implementing repairs and construction of new features in City Parks. Assist with the planning of new multi-use paths and hike and bike trails. Manage and inspect the construction of new multi-use paths and hike and bike trails. Strategic Plan Emphasis GOALS FOR FY 2023-2024 CITY OF SCHERTZ 83 ENGINEERING Update and improve standard construction details, technical specifications, and design guidelines. Support development and implementation of comprehensive Capital Improvement Program includingwater, wastewater, drainage, and roadway projects. Continue positive progression and completion of capital improvement projects. Complete update of water and wastewater capital recovery fees and impact fee ordinance. Continue to provide efficient, clear review of construction plans and other development submittals.Continue promotion of efficacy of TSAC activities and actions. Continue successful partnership with TxDOT. Project focus for FY 2023-24 ORGANIZATIONAL CHART CITY MANAGER ASSISTANT CITYMANAGERDEVELOPMENT ENGINEERING CITY OF SCHERTZ 84 ENGINEERING PERFORMANCE INDICATORS ENGINEERING CITY OF SCHERTZ 85 PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Engineering Budget increased 13.8% from the FY 2022-23 year end estimate for a new position(administrative assistant), the assumption of filling multiple position vacancies, and planned wage increases. CITY OF SCHERTZ 86 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 87 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 88 DEPARTMENT: 256 POLICE FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION The Schertz Police Department provides service to approximately 32 square miles, with the city in three different counties. The police department receives thousands of calls for services annually through the communications unit and dispatches for Police, Fire, Emergency Medical Service, and Animal Services. Additionally, the police department provides dispatch services for the City of Cibolo Police, Fire and Animal Services departments, and Schertz Emergency Medical Service dispatch for Cibolo, Marion, Seguin, and Santa Clara and other county areas. The Patrol Section provides a visible presence in the community, with the goal of crime prevention, crime reduction, traffic safety, and the promotion of overall public safety. The Investigations Section investigates incidents that occurred within the city, processes crime scenes, and follows up through prosecution with the County and District Attorneys of all three counties. The Records Section receives and prepares cases for submission to County and District Attorneys. The School Resource Section provides a visible presence on the campuses within the city; makes educational presentations to the students and staff, along with investigating crimes on campus. The Animal Services Section is responsible for the enforcement of State laws and City ordinances regarding the care and treatment of animals, rabies control, and overall public health through disease and population control. The Community Outreach Unit interacts with Homeowner Associations, provides education and crime prevention programs to the community, and oversees the Citizens Police Academy and the Citizens on Patrol. Our Crime Victim Liaison protects the rights and assists in the needs of the crime victims in Schertz and Cibolo. Policy Value: Essential Services and Safe Community Promoting a safe community through public education, community involvement, criminal investigations, enforcement action and other essential services. Enhance our citizens’ quality of life by promoting a feeling of safety for all citizens and visitors to the city, including neighborhoods, commercial areas, parks and public facilities. To increase department participation in community programs and increase citizen interest and participation in police department programs which lends to an attractive, safe community and promotes economic prosperity. To enhance the recruitment of high-quality officers/personnel to serve the citizens of Schertz and to retain those employees in which the city has already invested with an engaged workforce. Strategic Plan Emphasis GOALS FOR FY 2023-2024 CITY OF SCHERTZ 89 POLICE ORGANIZATIONAL CHART POLICE CITY MANAGER ANIMAL SERVICES CITY OF SCHERTZ 90 POLICE PERFORMANCE INDICATORS POLICE CITY OF SCHERTZ 91 PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget increases 14.8% from the FY 2022-23 year-end estimates. 5 school resource officers areadded to the position, but due to the difficulty in hiring police officers they are added without funding in the budget. If hired, the contract with Schertz-Cibolo-Universal City ISD will be updated and funds will be added to the budget. The increase in the budget is due to the anticipated wage adjustments, the new lease/maintenance program to replace the body cameras, in-car cameras, and the Tasers that is estimated at$550,000 per year for 5 years, and an increase in vehicle replacement due to price increases for vehicles. CITY OF SCHERTZ 92 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 93 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 94 DEPARTMENT: 257 FIRE RESCUE FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION The Schertz Fire Department is a full-service life safety department that responds to all Fire, EMS, Technical Rescue, Hazardous Materials, and any additional emergency service calls in the City of Schertz, our surrounding extra-territorial jurisdiction, as well as in support of our automatic and mutual aid partners. All department members are certified as structural firefighters and emergency medical technicians through the Texas Commission on Fire Protection and the Texas Department of State Health Services. Schertz firefighters are highly trained with many of them holding advanced firefighter, medical, and multi-discipline specialized certifications. The Schertz Fire Department has an active public education and fire prevention program that conducts building construction plan reviews, fire code enforcement, and fire inspections within the city. Fire and arson investigation services are maintained within the department as well as support any needs in Guadalupe County. Policy Value: Safe Community Perform comprehensive and excellent customer service to all resident and visitors to the City of Schertz Respond to 90% of the calls for service in the city limits within 5 minutes or less. Operational Value: Proactive Institute cancer prevention best practices at 100% of structure fire calls 100% of department members will undergo a yearly firefighter cancer screening. Perform fire pre-plans at 100% of commercial structures. Operational Value: Engaged Workforce Improve training opportunities and encourage involvement in specialized operations. Build upon area-wide technical rescue, hazardous materials, and wildland strike teams. Encourage advanced medical training and certifications. Recurring Projects Conduct annual reviews of policies and procedures to ensure conformance to current standards and best practices. Analyze the performance of all fire equipment and fleet vehicles to develop an effective capital replacement strategy. Develop training curriculum to enhance the firefighter’s level of professional and operational development Grow and improve emergency management with our local, regional,and state partners Specific Projects Delivery and implementation of the new quint aerial apparatus Design and construction of fire station #4. Staffing for fire station #4. Implement an officer development program with an emphasis on leadership training. Develop a department fitness program to improve long term physical and mental well being Pursue Recognition from the Texas Fire Chief’s Association’s Best Practices program. Strategic Plan Emphasis Project Focus for FY 2023-24 GOALS FOR FY 2023-2024 CITY OF SCHERTZ 95 CITYMANAGER FIRE RESCUE FIRE RESCUE ORGANIZATIONAL CHART CITY OF SCHERTZ 96 FIRE RESCUE PERFORMANCE INDICATORS CITY OF SCHERTZ 97 FIRE RESCUE PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget will increase 13.2% from the FY 2022-23 year-end estimate. This increase comes from adding 3 new captain positions, promoting 3 Firefighters to Fire Apparatus Operators (FAO) and from anticipated wage adjustments. CITY OF SCHERTZ 98 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 99 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 100 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 DEPARTMENT: PLANNING AND COMMUNITY DEVELOPMENT DIVISION: 258 BUILDING INSPECTIONS FUND: 101 GENERAL FUND Operational Value: Service Oriented, Systems Management, Engaged Workforce, Innovative Strive to provide superior customer service through courteous andprofessional relationships with the community. Promote and educate contractors and citizens on the CityView landmanagement software which has streamlined the process and providestransparency on construction projects. Continue to proactively make website improvements to help educate the public on the permitting process, inspection process and online payment process to meet customer needs. Continue to provide a high level of professional services to the variedstakeholders served, including builders, developers, landowners, neighborhood groups, business owners, appointed officials and Council members, and citizens of the community. Promote continuous staff development and cross training to improve efficiency and customer service while providing staff with growth opportunities. Policy Value: Safe Community, High Quality of Life Raise public awareness of Building Safety Month through education and activities to promote a safe community. Operational Value: Service Oriented, System Management, Innovative Successfully implemented CityView a new permitting/planning/Code Enforcement software which has improved the service to customers, transparency, and efficiency on all development projects. Implemented a new customer portal which is a one stop shop for contractor and citizen communications for submitting permits, make payments, request online inspections. Continued to provide flexibility in meeting types by offering in-person or virtual meetings through Microsoft Teams to continue daily business with contractors and developers to support a service- oriented culture. Increased the use of the Virtual Inspection Program which allows residents, contractors, and the city inspectors the ability to conduct virtual inspections on certain building projects. This process improves the timeliness of certain inspections while providing for some inspection visual records. Policy Value: Safe Community, High Quality of Life Promoted the yearly program to raise awareness for Building Safety Month which included safety tips on the city social media site and an article in the Schertz Magazine as well as meet and greets at Lowe’s. DEPARTMENT DESCRIPTION The Building Inspections Division assists customers seeking permits and inspections for various residential and commercial construction projects. The Division is responsible for maintaining health, safety, and welfare through professional review of building plans, permits and performing inspections to ensure and safe community and consistency of the City’s adopted building codes and ordinances. Staff works closely with citizens, contractors, builders, developers, and other City Departments to assist in creating an attractive and safe community. GOALS FOR FY 2023-24 Strategic Plan Emphasis ACCOMPLISHMENTS CITY OF SCHERTZ 101 BUILDING INSPECTIONS CITY OF SCHERTZ 102 ORGANIZATIONAL CHART PLANNING &ZONING INSPECTIONS CITY MANAGER PLANNING &COMMUNITYDEVELOPMENT DEPUTY CITYMANAGER NEIGHBORHOOD SERVICES PERFORMANCE INDICATORS CITY OF SCHERTZ 103 BUILDING INSPECTIONS PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget increases 16.2% from the FY 2022-23 year-end estimate with the anticipated wageadjustments. CITY OF SCHERTZ 104 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 105 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 DEPARTMENT: PLANNING AND COMMUNITY DEVELOPMENT DIVISION: 259 NEIGHBORHOOD SERVICES FUND: 101 GENERAL FUND Operational Value: Service Oriented, Systems Management Fostering collaborative partnerships between neighbors through our Good Neighbor Program and practices. Provide and seek interdepartmental assistance to support the community needs working alongside Planning, Building Inspections, Public Works, Parks, Police and Library. Policy Value: Safe Community, High Quality of Life, Attractive Community, Fiscally Sustainable Build a sense of community by closing gaps between needs and resources. Help increase a feeling of safety through proactive property maintenance inspections and engagement to achieve an attractive community. Work hand-in-hand with community stakeholders to increase and maintain a high quality of life by increasing our property maintenance program. Seek grant opportunities to support community programs to support an attractive community and high quality of live. Continue to promote safety and community service programs through social media, community events and attending HOA meetings. Operational Value: Service Oriented, Systems Management Increased division presence in the community earning trust and improving our accessibility to support residents in property maintenance projects. Worked with Public Affairs to create a division brand and use social media to provide information about city programs to support residents with the property maintenance needs. Created a community tool shed to assist With resident property maintenance needs. Policy Value: Safe Community, High Quality of Life, Attractive Community, Fiscally Sustainable Successfully worked with the Love Where You Live volunteers to help over 160 residents to remediate code violations. Connected residents with community resources for a major home repair. Sponsored the 1st Annual “Clean the Creek” which was an event in conjunction with other government entities and volunteers removing over 20 tons of trash and debris from the Cibolo Creek watershed within our community. DEPARTMENT DESCRIPTION The Neighborhood Services Division works with the community to engage, educate, protect and promote the health, safety and keep Schertz a safe and attractive place to live. The Division is committed to providing outstanding service in order to help revitalize and enhance the community by performing inspections and providing services to create a sense of community and by promoting regular maintenance on residential and commercial properties. The Neighborhood Services Division – Environmental Health focuses on inspection services to promote public health and uses health safety best practices to ensure compliance with state and local health codes to include, but not limited to, food establishments, all public and semi-public aquatic facilities, and responds to complaints and concerns. GOALS FOR FY 2023-24 Strategic Plan Emphasis ACCOMPLISHMENTS CITY OF SCHERTZ 106 CITY OF SCHERTZ 107 Created the Graffiti Abatement Program (GAP) to promote awareness and increase education on the impacts in the community. Continue to collaborate with city departments on events to ensure the health and safety of food vendors. PLANNING &ZONING INSPECTIONS PLANNING &COMMUNITYDEVELOPMENT DEPUTY CITYMANAGER NEIGHBORHOOD SERVICES ORGANIZATIONAL CHART CITY MANAGER NEIGHBORHOOD SERVICES CITY OF SCHERTZ 108 NEIGHBORHOOD SERVICES PERFORMANCE INDICATORS PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget increases 0.4% from the FY 2022-23 year-end estimate. Fewer capital purchasesalmost offset the anticipated wage adjustments. CITY OF SCHERTZ 109 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 110 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 DEPARTMENT: PUBLIC WORKS DIVISION: 359 STREETS FUND: 101 GENERAL FUND Policy Values: Essential Services and Fiscally Sustainable Apply preventative maintenance strategies to extend the life of City streets and reduce unscheduled maintenance. Policy Values: Essential Services and Attractive Community Plan, design, construct, inspect, operate, and maintain traffic functions including traffic control devices, crosswalk signals, street resurfacing and rehabilitation, streetlights, street signs, street sweeping and street pavement markings. Policy Value: Safe Community Emphasize safety to reduce preventable accidents. Policy Value: Safe Community Provide proactive services such as traffic counts and speed information on specific streets as requested to improve community traffic conditions and safety. Operational Value: Systems Management Develop and execute a systems management approach to street maintenance plans, pothole patching, crack sealing, and sidewalk repair/construction. Acquire needed equipment, provide necessary training, prioritize and schedule crack sealing and pothole repair program consistent with the Pavement Condition Index (PCI)recommendations and goals. Develop, implement and evaluate a revised street sweeping schedule based on industry standards, community expectations and resource allocation. Finalize and implement schedule for street restriping and sidewalk repair/construction. Create a stock “go bags” for Public Works Staff for using during emergency repair situations that include all necessary equipment and supplies to function for an established period. DEPARTMENT DESCRIPTION The Street Division provides high quality essential services in design, construction, inspection, and renovation of streets to provide safe and sustainable transportation infrastructure. The Streets division’s service-oriented focus is to offer innovative customer service while being fiscally sustainable. The division evaluates affordable and efficient options for providing street maintenance service including support for community service opportunities. GOALS FOR FY 2023-24 Strategic Plan Emphasis Project focus for FY 2023-24 CITY OF SCHERTZ 111 CITY OF SCHERTZ 112 STREETS CITY MANAGER DRAINAGE DEPUTY CITYMANAGER PUBLICWORKS WATER AND SEWER PUBLIC WORKS ORGANIZATIONAL CHART PERFORMANCE INDICATORS CITY OF SCHERTZ 113 PUBLIC WORKS PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget will increase 25.2% from the FY 2022-23 year-end estimate. Personnel increases with anticipated wage adjustments while staff has engaged contractors to resurface streets for the next year. Also being purchased is a asphalt lay down machine and a new truck. CITY OF SCHERTZ 114 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 115 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 116 DEPARTMENT: 460 PARKS, RECREATION, AND COMMUNITY SERVICES FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION The Parks, Recreation, and Community Services department oversees the maintenance and management of approximately 438 acres of park land, to include the maintenance of municipal facilities, creek ways, swimming pools, park irrigation systems, trails, restrooms, pavilions, open space, playground equipment, benches, picnic tables, lighting, mowing contracts oversight, campus formal bed maintenance contracts, and oversight of athletic field maintenance by sports associations (Buffalo Valley Youth Association and Schertz Youth Soccer Alliance). It conducts community- wide tree planting and beautification programs. Acquires, designs, constructs, and renovates existing and additional park land and facilities. It provides citizen input and communication venues utilizing the Parks and Recreation Advisory Board, community surveys, and community meetings. It plans and implements over 50 special events, recreation programs, and parades. The Director of Parks, Recreation, and Community Services oversees the budgets for Parks, Swimming Pools, Tree Mitigation, Parkland Dedication, and the Special Events Fund. In addition, the Director oversees and manages the contracts with the YMCA of Greater San Antonio for the staffing and programming of the Recreation Center, the Schertz Area Senior Center, the Schertz Aquatics Center, and the outdoor pool at Pickrell Park. Policy Value: High Quality of Life Develop a system of parks, open space, recreational facilities, trails, and leisure services that will meet the needs of an expanding community. Provide recreational and leisure opportunities to City of Schertz residents of all ages through youth sports, adult social leagues, special events, parades, programs, and nature education. Policy Value: Attractive Community Continue the development of trails and greenbelts to improve connectivity among parks, neighborhoods, churches, schools, public facilities, and municipal buildings and maintain a visually attractive community. Policy Value: Fiscally Sustainable Operational Value: Service Oriented Coordinate with consultants to develop an updated Parks and Open Space Master Plan to keep pace with the needs of an expanding community. Coordinate with consultants to develop a Master Development Plan for Crescent Bend Nature Park to set the vision for the next 10 years. Manage construction projects for irrigation storage at Schertz Soccer Complex; additional segments of the Great Northern Trail construction; and parking, lighting, and accessibility at Thulemeyer Park. Install site amenities at various parks across the system including picnic tables, BBQ pits, benches, dog waste stations, water fountains, irrigation backflow covers and cages, and trail signage. Organize and launch a volunteer Trail Watch Program for the Schertz Trails System. Plan and implement various special events, parades, park grand openings, marketing campaigns, nature education programs, and youth and adult sports. Strategic Plan Emphasis Project focus for FY 2023-24 GOALS FOR FY 2023-2024 CITY OF SCHERTZ 117 POOLS CITY MANAGER ASSISTANT CITYMANAGERDEVELOPMENT PARKS, RECREATION, AND COMMUNITY SERVICES EVENT FACILITIES PARKS, RECREATION, AND COMMUNITY SERVICES ORGANIZATIONAL CHART PARKS, RECREATION, AND COMMUNITY SERVICES CITY OF SCHERTZ 118 PERFORMANCE INDICATORS PARKS, RECREATION, AND COMMUNITY SERVICES CITY OF SCHERTZ 119 PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget will increase 0.7% from the FY 2022-23 year-end estimate. Personnel increases from the anticipated wage adjustment is mostly offset by fewer park improvements with the completion of existing projects. CITY OF SCHERTZ 120 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 121 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 DEPARTMENT: PARKS, RECREATION, AND COMMUNITY SERVICES DIVISION: 463 POOLS FUND: 101 GENERAL FUND Policy Value: High Quality of Life Maintain and develop aquatic programs designed to educate our citizens and to meet the needs of our expanding community. Maintain a high quality of pool maintenance while providing excellent aquatic recreation and leisure service programs. Continue management oversight of the Schertz Aquatics Center in order to expand the availability of recreational and health/well-being programming and provide year-round access to same. Operational Value: Innovative Manage and maintain the operations of the new Wendy Swan Memorial Park Splashpad that was developed on the site of an old residential size swimming pool. Close the splashpad for the winter season and successfully open the splashpad up for the new season the Friday before Spring Break week. DEPARTMENT DESCRIPTION The management and maintenance of two (2) outdoor pools and one splash pad including the maintenance of swimming facilities, pumping systems, and related aquatic programs designed to encourage safe use and professional management of these facilities. Provide contractual oversight of the management, programming, and maintenance of the Schertz Aquatics Center. Provide citizen input and communication venues utilizing the Parks and Recreation Advisory Board, surveys, and community meetings. GOALS FOR FY 2023-24 Strategic Plan Emphasis Project focus for FY 2023-24 CITY OF SCHERTZ 122 POOLS CITY MANAGER ASSISTANT CITYMANAGERDEVELOPMENT PARKS, RECREATION, AND COMMUNITY SERVICES EVENT FACILITIES ORGANIZATIONAL CHART CITY OF SCHERTZ 123 POOLS PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget will remain at the same level with no change in operations. PERFORMANCE INDICATORS CITY OF SCHERTZ 124 CITY OF SCHERTZ OPERATING BUDGET2023-2024 DEPARTMENT: PARKS, RECREATION, AND COMMUNITY SERVICES DIVISION: 464 EVENT FACILITIES FUND: 101 GENERAL FUND Policy Value: High Quality of Life Promotes community involvement by attracting public events such as fundraisers, tradeshows/conventions, and performing arts events. Promotes high quality of life for residents and other customers by providing an affordable, friendly, and safe gathering place for special events. Policy Value: Service Oriented Promotes relationships with surrounding cities, businesses, organizations, and citizens by offering audio/video capabilities and attractive, flexible and diverse use of venue space through upgrades in technology and building improvements. Continue to implement new event management software to increase operational efficiency and provide better customer service. Implement a maintenance week closure into the operating schedule to provide for deep cleaning, preventative maintenance, and minor repairs to occur without interruption for increased efficiency. DEPARTMENT DESCRIPTION Under the umbrella of Parks and Recreation, Event Facilities provides a place where guests can celebrate life events such as social or cultural activities. The Event Facilities are centrally located in Schertz for businesses and other organizations to hold meetings, training, and/or other specialized events. This department handles all aspects of event rental, and in cooperation with other department’s plans, coordinates and executes each event from start to finish (initial deposit to event feedback). GOALS FOR FY 2023-24 Strategic Plan Emphasis Project focus for FY 2023-24 CITY OF SCHERTZ 125 POOLS CITY MANAGER ASSISTANT CITYMANAGERDEVELOPMENT PARKS, RECREATION, AND COMMUNITY SERVICES EVENT FACILITIES ORGANIZATIONAL CHART CITY OF SCHERTZ 126 EVENT FACILITIES PERFORMANCE INDICATORS CITY OF SCHERTZ 127 PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget will increase 14.5% from the FY 2022-23 year-end estimate for the anticipated wage adjustments. EVENT FACILITIES CITY OF SCHERTZ 128 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 129 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 130 DEPARTMENT: 665 LIBRARY FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION The Schertz Public Library supports life-long learning, literacy and recreation for all members of our community by developing and maintaining a wide variety of library materials in print, audiovisual and digital formats for users of all ages. It encourages the love of reading and learning by providing story time, special event programs, and various other literacy-based programs for infants, children and teens and enriches the lives of adults by providing instructional and recreational programming in high-interest areas such as technology, health and fitness, financial planning, and crafts. The library acts as a community hub by providing meeting and study spaces to individuals and community groups, and provides public access to technology including computers, the Internet, wi-fi and printers, as well as to online employment, business and educational resources. The library’s primary service area includes more than 121,000 people in the City of Schertz, the City of Selma, the City of Cibolo and Guadalupe County. Policy Value: High Quality of Life Provide all community members a wide variety of engaging materials, services and programs that support life-long learning, literacy, and recreation. Provide welcoming spaces for meetings, quiet individual activities andstudying, and group activities. Provide digital literacy skills and access to computers, Internet service, and other technology devices such as mobile hotspots to close the digital divide due to socioeconomic status and service gaps in rural areas. Operational Value: Service Oriented Provide outreach services and activities outside of the library building to community members, schools, and community organizations to bring library services to those who can’t visit the building. Partner with city departments, local governments, schools, businesses, and organizations to provide programming opportunities beyond regular library programming. Provide high quality, customer-focused service by focusing on the City’s core values and investing in on-going staff training in customer service principles, policy and procedures, technology training, and library best practices. Recurring projects: Improve the collection and acceptable items-to-customer ratio by adding titles in a variety of formats. Focus will continue to be on collections with high turnover rates, e.g., bestsellers, DVDs, graphic novels, beginning readers, etc., with an additional focus in FY24 on providing new types of circulating items, e.g., games, activity kits, and read-along audiobooks. Weed the collection according to schedule to enhance and update collections. Review and update policies and procedures with an eye toward providing excellent customer- focused service, inclusion, and efficiency in service delivery. Specific projects: Complete full implementation of in-house laptop circulation program. Purchase additional mobile hot spots to expand hot spot circulation program. Replace classroom all-in-one computers with new laptops. Add additional fitness and wellness classes to the adult programming schedule. Strategic Plan Emphasis Project Focus for FY 2023-24 GOALS FOR FY 2023-2024 CITY OF SCHERTZ 131 CITY MANAGER ASSISTANT CITY MANAGER LIBRARY Add additional literacy-based and/or STEAM programs for youth and teens to the youth programming schedule. Add additional ESL courses throughout the year.Continue working on the home-bound initiative with Neighborhood Services.Establish a core collection of circulating Experience Kits for adults and youth. Work with IT to research and install a public address system to ensure a smoother deployment of emergency preparedness procedures.Purchase an interactive computer table to engage youth in educational, multi-player games.Improve web site navigation and organization for increased engagement and a better user experience. Pursue Texas Municipal Library Directors 2023 Achievement in Excellence Award by demonstrating consistent excellence and outstanding contributions to public library services within our community. LIBRARY ORGANIZATIONAL CHART CITY OF SCHERTZ 132 LIBRARY PROGRAM JUSTIFICATION AND ANALYSISThe Library FY 2023-24 Budget increases 7.6% from the FY 2022-23 year-end estimate with the anticipatedwage increase. Library materials budget increases $15,000 and is offset in FY 2023-24 by fewer furniture replacements. PERFORMANCE INDICATORS CITY OF SCHERTZ 133 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 134 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 DEPARTMENT: INTERNAL SERVICES DIVISION: 853 INFORMATION TECHNOLOGIES (IT) FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION The Information Technologies Dept. is charged with maintaining, operating, and securing the City’s information assets. These assets form the foundation upon which many of the City’s core operations depend. Therefore, this foundation must be reliable, resilient, and responsive. To meet these expectations, the department focuses daily on customer service, education, and planning. The IT department increases the business return on technology investments by creating and managing hardware and software through dedicated planning and alignment. IT is also dedicated to ensuring a great end user experience by designing, implementing, managing, and continually improving our processes. IT is also tasked to protect the organization and its ability to perform its mission. We accomplish this through a comprehensive security program, managing our data, ensuring efficiency, effectiveness, and compliancy. We also strive to deploy programs designed to engage our staff and citizens in easy and convenient ways. The City of Schertz uses a Geographic Information System (GIS) to create maps, analyze information, and visually examine the geographic features of our region. Many functions of City government have a geographic dimension and the successful execution of GIS Services can substantially increase efficiency, collaboration and empowerment in the decision-making process. CITY OF SCHERTZ 135 Policy Value: Essential Services Improve efficiency, productivity, workflows, and collaborations Mobilize the city by choosing cloud-base services to improve communication sharing between city departments Improve fiber connection between all city buildings Policy Value: Attractive Community Provide excellent customer service Safeguard the city’s network and the data shared within Improve fiber communication between buildings at 10 Commercial Place Update the US Digital Station Alerting System Install firewall redundancy throughout the City’s network system Strategic Plan Emphasis Project focus for FY 23-24 GOALS FOR FY 2023-2024 CITY OF SCHERTZ 136 FLEET SERVICES INFORMATIONTECHNOLOGY FACILITY SERVICES CITY MANAGER DEPUTY CITY MANAGER INTERNALSERVICES INFORMATION TECHNOLOGY (IT) ORGANIZATIONAL CHART INFORMATION TECHNOLOGY (IT) CITY OF SCHERTZ 137 INFORMATION TECHNOLOGY (IT) CITY OF SCHERTZ 138 PROGRAM JUSTIFICATION AND ANALYSIS The Library FY 2023-24 Budget increases 7.6% from the FY 2022-23 year-end estimate with the anticipated wage increase. Library materials budget increases $15,000 and is offset in FY 2023-24 by fewer furniture replacements. CITY OF SCHERTZ 139 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 140 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 141 DEPARTMENT: 866 HUMAN RESOURCES FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION The Human Resources Department provides services and support in the areas of recruitment, selection, staffing, benefits administration, labor law compliance, performance management, employee development and relations, health and wellness, and policy administration. Operational Value – Service Oriented Deliver HR services, programs, and communications that add value for our prospective employees and current employees. Operational Value – Engaged Workforce Improve employee retention by leading efforts for adoption of strategies which promote a diverse workforce and create a great work climate. Support the talent development of our employees through professional and career development. Administer HR policy and programs effectively and efficiently, while maintaining internal customer satisfaction and meeting budget constraints. Operational Value – Proactive Compete for top talent with effective recruitment strategies and an efficient recruitment process. Ensure our compensation and performance management processes are designed and executed to align and maximize our people’s performance with the goals of the organization. Strategic Plan Emphasis GOALS FOR FY 2023-2024 ORGANIZATIONAL CHART CITY MANAGER ASSISTANT CITY MANAGER HUMANRESOURCES PURCHASING CITY OF SCHERTZ 142 HUMAN RESOURCES PERFORMANCE INDICATORS CITY OF SCHERTZ 143 HUMAN RESOURCES PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget will increase 13.7% from the FY 2022-23 year-end estimate from the anticipated wage increases and adding $20,000 in unused employee wellness program funds from FY 2022-23 for future use. CITY OF SCHERTZ 144 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 145 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 146 DEPARTMENT: 868 FINANCE FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION Prepare monthly financial reports for the City Manager, City Council and City departments. Process all accounts payable and receivable in a timely manner, prepare 1099s, and prepare monthly bank reconciliations. Maintain and process payroll for all city employees. Finance handles unclaimed property and their subsequent disbursements to the individuals or the State. Adopt and update an Investment Policy and strategy annually that follows the Public Funds Investment Act that outlines oversight of investment funds and states the types of investments the city can use. Manage debt service and fixed assets annually. Complete the annual budget and facilitate annual audit and Comprehensive Annual Financial Report. Perform financial forecasting to make better, more informed operational decisions. The Finance Director also oversees the Utility Billing and Municipal Court Divisions. Policy Value: Financially Sustainable Provide timely and accurate financial information and reports to the City Manager, City Council, other City departments, citizens, and other agencies so they have the information they need to make operational decisions to keep the city financially sustainable. Reports should be delivered within 30 days of the prior month end. Receive the Government Finance Officers Association Certification of Excellence in Financial Reporting for the 36th consecutive year. Improve the 5 year budgeting and forecasting plan for operations and debt management. These tools help maintain the fiscal sustainability of the City. Operational Value: Systems Management Work with departments and key stakeholders to adapt and refine policies and procedures to best utilize new financial software coming in FY 2023-24. The goal will be to increase the effectiveness and efficiency of all financial related operations in the city as a systemwide approach. Refine internal processes and systems to be more effective and efficient. Submit for financial transparency awards. Strategic Plan Emphasis Project Focus for FY 2023-24 GOALS FOR FY 2023-2024 CITY OF SCHERTZ 147 FINANCE ORGANIZATIONAL CHART BILLING OFFICE FINANCE CITY MANAGER ASSISTANTCITYMANAGER MUNICIPALCOURT CITY OF SCHERTZ 148 FINANCE PERFORMANCE INDICATORS PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget will increase 2.1% from the FY 2022-23 year-end estimate. The anticipated wageincreases are partially offset by reclassifying the vacant Senior Accountant position as an Accountant. CITY OF SCHERTZ 149 CITY OF SCHERTZ OPERATING BUDGET2023-2024 DEPARTMENT: HUMAN RESOURCES DIVISION: 872 PURCHASING AND ASSET MANAGEMENT FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION The Purchasing and Asset Management Department is responsible for managing the Purchasing, Inventory, Property Disposal, Contracts, Grants, Real Property Acquisitions, Risk Management, Worker’s Compensation, Property Insurance, and Safety functions for the City. Purchasing manages all bids, quotes, contracts and agreements, City purchases, warehouse inventory, City property disposal, auctions, grants, fleet vehicle registration and titles, and Real Property acquisitions. The department is also responsible for the City’s Risk Management and Safety program. It Maintains the City Capital and Fixed Assets inventory, property and liability insurance schedules, processes all insurance claims, insurance litigation, and workers compensation, monitors all safety aspects of City functions, schedules employee safety training, evaluates loss runs to identify trends and mitigate risk. CITY OF SCHERTZ 150 Core Value – Do the Right Thing Maintain the highest levels of ethical practices for all department functions. Economic Policy Value – Fiscally Sustainable Procure quality goods and services for all City departments, from appropriate sources, using the most efficient and economical means at the best possible price and make them available at the right place and time. Use supply contracts and co-ops in order to improve delivery time of particular items and to take advantage of quantity discounts. Operational Value – Service Oriented All City departments receive their orders in a timely manner to effectively perform their job functions in an efficient manner. Maintain a professional relationship with all City departments and vendors insuring open communication. Operational Value – Systems Management Maintain the City Purchasing Manual, combining State and Local Purchasing Legislation. Manage, review, and track City contracts and agreements. Notify departments when contracts are expiring. Manage the real property acquisition process to include routing of offers for property purchases, and overseeing the offer to closing processes. Manage procedures for Capital and Fixed asset inventory and accountability and conduct physical surveys of City property. Manage disposal and auction activities for surplus, excess, and damaged City property. Manage insurance and Workers Compensation claims and accident/incident reports with immediate response. Gather all information for all incidents involving City property regardless of repair costs. Retainclaims, reports and litigation according to the Texas State Records Retention Schedules. Operational Value – Proactive Develop and oversee Purchasing training for employees to ensure compliance with City Policy, State and Local Purchasing Legislation. Develop and oversee safety training for employees to minimize accident sand incidents and mitigate risk. Develop and Maintain the City Safety Policy. Strategic Plan Emphasis GOALS FOR FY 2023-2024 CITY OF SCHERTZ 151 PURCHASING ORGANIZATIONAL CHART CITY MANAGER ASSISTANT CITY MANAGER HUMANRESOURCES PURCHASING PERFORMANCE INDICATORS PURCHASING HUMAN RESOURCES CITY MANAGER ASSISTANT CITY MANAGER CITY OF SCHERTZ 152 PURCHASING PROGRAM JUSTIFICATION AND ANALYSISThe FY 2023-24 Budget reflects an increase of 6.5% from the FY 2022-23 year end estimate to account for training related to new staff certifications and anticipated wage increases. CITY OF SCHERTZ 153 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 154 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 DEPARTMENT: INTERNAL SERVICES DIVISION: 877 FLEET SERVICES FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION Fleet Services provides maintenance, repair, upgrade and outfitting services for all City owned vehicles and equipment totaling nearly 400 units. The list of services includes P.M. services, fluid and filter changes, state inspections, tire services, troubleshooting, diagnosis, and repair of mechanical and electrical systems. Fleet Services also maintains motor pool services, vehicle and equipment replacement schedules, vehicle specifications and standardization throughout the fleet. CITY OF SCHERTZ 155 Policy Value: Essential Services Maintain and repair vehicles and equipment to increase their lifespan. Optimize fleet availability with minimal turn-around times. Develop and implement fleet utilization guidelines and procedures. Maintain and improve vehicle and equipment safety Policy Value: Attractive Community Enhancing safety for city employees Improve current vehicle replacement program Strategic Plan Emphasis Project focus for FY 23-24 GOALS FOR FY 2023-2024 CITY MANAGER ORGANIZATIONAL CHART FLEET SERVICES INFORMATIONTECHNOLOGYFACILITYSERVICES CITY MANAGER DEPUTY CITY MANAGER INTERNAL SERVICES CITY OF SCHERTZ 156 FLEET SERVICES PERFORMANCE INDICATORS CITY OF SCHERTZ 157 FLEET SERVICES CITY OF SCHERTZ 158 FLEET SERVICES PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget will decrease 12.9% from the FY 2022-23 year-end estimate due to anticipated wage increases and full year funding for the new Internal Services Director position that was created mid-FY 2022-23. CITY OF SCHERTZ 159 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 160 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 DEPARTMENT: INTERNAL SERVICES DIVISION: 878 FACILITY SERVICES FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION Facility Services supports and maintains 27 City facilities totaling 301.656 square feet. The City buildings include City Hall, Administration Building, Police, Emergency Services Buildings, Community Center Central, Community Center North, City Council Chambers, Civic Center, Public Library, Visitor Center (Kramer House), YMCA, Senior Center, Purchasing building, Public Works facility, Animal Control, Aquatic Center, various offices, meeting/training rooms, and storage areas. In addition, Facility Services provides set up for events such as Parks Events (Jubilee, Christmas Tree lighting, parades), Employee Memorial Ceremony, City Council, Planning and Zoning, various Boards and Commissions, Department meetings, Municipal Court, training seminars, elections, groundbreaking ceremonies, and other special events. CITY OF SCHERTZ 161 Policy Value: Essential Services Deliver exceptional customer services Creating a comprehensive maintenance schedule through preventative maintenance to extend the life of facilities and specified equipment. Increase safety and security by enhancing access control systems, conducting regular safety inspections, implementing emergency response protocols, and training staff members on handling critical situations Establishing an energy efficiency goal by implementing energy efficient practices to help reduce energy consumption Space utilization goal to help foster growth, innovation, and eliminate wasted areas Policy Value: Attractive Community Maintain safe and clean facilities. Replace HVAC systems around City campuses Perform preventative maintenance to the interior of buildings Assess building functionality and spatial utilization throughout the Citycampuses Upgrade some features within each building Strategic Plan Emphasis Project focus for FY 23-24 GOALS FOR FY 2023-2024 CITY OF SCHERTZ 162 CITY MANAGER FACILITY SERVICES ORGANIZATIONAL CHART FLEET SERVICES INFORMATIONTECHNOLOGYFACILITYSERVICES CITY MANAGER DEPUTY CITY MANAGER INTERNAL SERVICES CITY OF SCHERTZ 163 FACILITY SERVICES CITY MANAGER PERFORMANCE INDICATORS PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget increases 5.1% from the FY 2022-23 year-end estimates due to anticipated wageadjustments. The building maintenance funds were moved from Maintenance Services to Capital Outlay to better track emergency repairs and routine maintenance versus building renovations and large repair projects. CITY OF SCHERTZ 164 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 165 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 166 DEPARTMENT: 901 CITY ASSISTANCE FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION The Senior Center is supported by contracting with the YMCA for programing and a vendor to support the meal program. The Senior Center provides a social environment for the local area seniors and a hot meal for them to enjoy. The Patient Assistance program is an Interlocal Agreement between the City of Schertz and Guadalupe Valley Hospital. The Hospital agrees to provide prescription medication free of charge or at a low cost to citizens of Schertz who qualify for assistance under established guidelines. The Hospital agrees to maintain a part-time intake and information office in Schertz. Prescriptions will be filled and administered at the Hospital’s Seguin facility. The City agrees to pay the hospital an agreed upon amount under the yearly contract. The Hospital agrees to provide written reports to the City and to provide the City with the complete budget for the Hospital’s drug program. This contract is for $5,000. The City of Schertz also provides assistance to the Guadalupe Children’s Advocacy Center. The Center provides a warm, homelike environment for children who visit to be interviewed about physical or sexual abuse. The Children’s Advocacy Center’s primary emphasis is placed on the well-being of the child to prevent further trauma. This agreement is for $5,000. Transportation Assistance is provided through Alamo Regional Transit for senior citizens. Starting in 2016-17 the City has entered into a support agreement with the Schertz Housing Authority to provide assistance in their mission of helping those in need find suitable living spaces. PROGRAM JUSTIFICATION AND ANALYSISThe FY 2023-24 Budget will increase $10,000 from the FY 2022-23 year-end estimate for the Senior Citizens meal program with increased attendance. CITY OF SCHERTZ 167 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 168 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 169 DEPARTMENT: 910 COURT RESTRICTED FUNDS FUND: 101 GENERAL FUND DEPARTMENT DESCRIPTION The court security fee and court technology fees are revenues that are restricted on use. The court technology must only be spent to purchase new or replacement devices to improve or maintain the efficiency of the Municipal Court. Approved purchases are computers, servers where court files are stored and computerized ticket writers. The court security fee can only be used to add or enhance security measure to the court room for the safety of staff and citizens. Currently the security fee will be used to offset a Deputy Marshal position which provides security for the Court. PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget will increase $9,000 from the FY 2022-23 estimate to match the projected revenue for2023-24. CITY OF SCHERTZ 170 CITY OF SCHERTZ OPERATING BUDGET2023-2024 INTEREST ANDSINKINGFUND CITY OF SCHERTZ 172 FUND: 505 INTEREST AND SINKING FUND DESCRIPTION This fund is used to account for the accumulation of resources for and the payment of general long term debt principal and interest on city debt. The Interest & Sinking (I&S) portion of the property taxes are directly deposited by the County Tax Assessor’s Office into this fund. PROGRAM JUSTIFICATION AND ANALYSISRevenues: Revenues for FY 2023-24 increase 15.4% from the FY 2022-23 estimate with higher property values and an increase in the I&S tax rate. Expenses: The FY 2023-24 Budget will decrease 1.7% from the FY 2022-23 year-end estimate following theexisting debt payment schedule. CITY OF SCHERTZ 173 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 174 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 175 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 176 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 WATER ANDSEWER CITY OF SCHERTZ 178 REVENUE WATER AND SEWER FUND Sale of Water 44.9% Garbage Collection 19.3% Sewer Charges 30.5% Other Fees and Charges 2.5% Miscellaneous Income 44.9% WATER & SEWER - REVENUES SALE OF WATER $14,000,000 GARBAGE COLLECTION $6,018,000 SEWER CHARGES $9,500,000 OTHER FEES & CHARGES $785,800 MISCELLANEOUS INCOME $1,201,000 TOTAL $31,504,800 CITY OF SCHERTZ 179 EXPENDITURES WATER AND SEWER FUND Debt Service 8.6% Operation Support & Services 24.1% Utility & Maintenance Services 53.8% Professional & City Services 2.5% Personnel 9.9% Supplies 1.1% WATER & SEWER - EXPENDITURES PERSONNEL $2,967,301 SUPPLIES $322,080 PROFESSIONAL & CITY SERVICES $748,050 UTILITY & MAINTENANCE SERVICES $16,169,950 OPERATION SUPPORT & SERVICES $7,237,236 CAPITAL EXPENSE $1,200,100 DEBT SERVICE $2,597,184 TOTAL $31,241,901 CITY OF SCHERTZ 180 FUND: 202 WATER AND SEWER FUND DESCRIPTION The Water & Sewer Fund tracks revenue and expenses for the City’s water, sewer, and solid waste functions and is managed by the Public Works Department. Staff is responsible for the planning, operation, and maintenance of the water and wastewater service and infrastructure. This includes the water distribution system, wastewater collection system, and utility billing office. The City’s wholesaler for water production and transport is the Schertz-Seguin Local Government Corporation. Wastewater treatment is handled by the Cibolo Creek Municipal Authority. Garbage collection is handled by Republic Services. PROGRAM JUSTIFICATION AND ANALYSIS Revenue: Revenues for FY 2023-24 Budget are expected to increase 1.8% from the FY 2022-23 year-endestimate due to account growth and fee increases. Expenses: The FY 2023-24 Budget increases 7.1% from the FY 2022-23 yearend estimates for anticipated wage adjustments and costs of water purchases and wastewater treatment increasing. CITY OF SCHERTZ 181 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 182 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 DEPARTMENT: FINANCE DIVISION: 176 WATER AND SEWER UTILITY BILLING FUND: 202 WATER AND SEWER DEPARTMENT DESCRIPTION The Utility Department is entrusted with several essential responsibilities, which are fundamental to the provision of utility services. Among these duties are the precise measurement of utility usage through meter reading, the creation and delivery of utility invoices, the processing of customer payments, the establishment of new customer accounts, the annual conduct of sewer averaging, the management of debt collection on a quarterly basis, the resolution of customer complaints in a prompt and equitable manner, and the acceptance of payments on behalf of other city departments. These tasks are performed with the utmost professionalism and expertise, ensuring that utility services are delivered efficiently and effectively to all customers. In addition to these responsibilities, the department provides customer service with education to help improve customer understanding of their utility bills. This education is designed to ensure that customers have the necessary knowledge to fully grasp their billing statements and to address any questions or concerns that may arise. By providing these services, the utility department plays a vital role in ensuring the efficient and effective delivery of utility services to customers. CITY OF SCHERTZ 183 Policy Value: Essential Services Our priority is to ensure that our customers always receive prompt and courteous service. In offering exceptional service, we can establish a strong relationship with our customers and maintain their trust and loyalty. Policy Value: Quality of life We aim to educate customers on making timely payments of their utility bills through our city's automated draft payment system, online web payments, payment kiosks, and electronic services offered by their respective financial institutions. By utilizing these payment methods staff is able to provide essential services while saving valuable time and resources. This not only simplifies the process of record-keeping but also enhances the overall experience of our customers. Project focus for FY 2023-24 Community engagement and awareness campaign to inform and educate the customers on various utility services: water, sewer, and solid waste management. By promoting such knowledge, customers can make informed decisions about their utility usage and contribute towards the overall sustainability of the city. To maintain a highly skilled and professional workforce, it is important to establish clear performance standards, provide regular feedback and coaching, and recognize and reward exceptional performance. Increase the knowledge and skills of the department's personnel through training, thereby improving their ability to carry out their duties effectively and efficiently. With the recent addition of a Lead Clerk position and the hiring of new staff, we would like to expand the use of the Harmony Meter system. This system is an instrumental tool for keeping residents informed of any leaks. This information is critical for allowing customers to be notified of leaks early and proactively take measures to prevent increased utility bills. Strategic Plan Emphasis GOALS FOR FY 2023-2024 CITY OF SCHERTZ 184 UTILITY BILLING FINANCE CITY MANAGER ASSISTANT CITYMANAGER MUNICIPALCOURT WATER AND SEWER UTILITY BILLING CITY OF SCHERTZ 185 WATER AND SEWER UTILITY BILLING PROGRAM JUSTIFICATION AND ANALYSISThe FY 2023-24 Budget increases 11.1% from the FY 2022-23 year-end estimate due to anticipated wageadjustments and the addition of a Lead Clerk position and higher credit card fees as more customers pay by phone or online. CITY OF SCHERTZ 186 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 187 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 DEPARTMENT: PUBLIC WORKS DIVISION: 575 WATER AND SEWER ADMINISTRATION FUND: 202 WATER AND SEWER DEPARTMENT DESCRIPTION The Water and Wastewater division of Public Works provides essential services to the Schertz community through maintenance, repair, strategic planning, inspection of infrastructure, and the expansion of water and wastewater services. To contribute to a higher quality of life and a safer community that is sustainable and financially sound, our employees offer excellent customer service, participate in community events, provide a weekly chipping service, meet with developers and utility providers, review plat and subdivision plans, as well as review water and wastewater construction plans. In addition, the Water and Wastewater division oversees the drought and water conservation plans/ordinance, provides letters of availability and Certificates of Convenience and Necessity, assists other departments, and conducts department training, education, and planning. CITY OF SCHERTZ 188 Policy Values: Safe Community and Essential Services Provides a safe potable water system that maintains adequate pressure and meets all the State rules and regulations. Policy Values: Safe Community and Essential Services Provides a safe, sanitary, and reliable wastewater system that meets all State rules and regulations. Policy and Operational Values: Essential Services, Fiscally Sustainable, and Proactive Ensure an adequate future water supply, through innovative conservation practices and proactively developing new resources. Operational Value: Proactive Proactively engage and empower personnel to strengthen ability to respond promptly to daily and emergency events. Operational Value: Engaged Workforce Emphasize safety to reduce preventable accidents. Operational Value: Engaged Workforce Service oriented in delivering quality services and providing accurate and timely responses to customer requests and concerns. Construction focus to improve redundancies in the system. Focus on improving staff training. Assist the Engineering Department in updating the Design Manual and development standards that impact the water and sewer system. Strategic Plan Emphasis Project focus for FY 2023-24 GOALS FOR FY 2023-2024 CITY OF SCHERTZ 189 WATER AND SEWER ADMINISTRATION ORGANIZATIONAL CHART STREETS DRAINAGEWATER AND SEWER DEPUTY CITY MANAGER PUBLIC WORKS CITY MANAGER CITY OF SCHERTZ 190 WATER AND SEWER ADMINISTRATION PERFORMANCE INDICATORS CITY OF SCHERTZ 191 WATER AND SEWER ADMINISTRATION PERFORMANCE INDICATORS PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget will increase 8.2% from the FY 2022-23 year-end estimate due to anticipated wage adjustments and the purchase of a replacement Combo Vac Truck, system monitoring upgrades andeasement acquisition for future infrastructure. CITY OF SCHERTZ 192 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 193 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 194 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 195 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 196 FUND: 411 CAPITAL RECOVERY FUND WATER DESCRIPTION The Capital Recovery program is designated to support future growth of population and commercial water and wastewater demands without an impact on existing customers while keeping bond supported programs to a minimum. Capital Recovery projects are based on the number of connections sold to increase pumping, storage and transmission water lines, and wastewater programs. Impact funds (Capital Recovery) must be used within ten years of collection date. All water and wastewater improvements are constructed to meet State Board of Insurance and Texas Commission on Environmental Quality rules and regulations. PROGRAM JUSTIFICATION AND ANALYSISThe FY 2023-24 Budget will be set at $55,748 for any professional services or studies that need to be completed. FOOD/WATER Ensure the Texas Commission of Environmental Quality (TCEQ) rules and regulations are met for future growth. Continue to improve and provide an efficient and reliable water and wastewater system that meets all of the State rules and regulations and future growth in the community. Provide citizens with quality projects completed on-time and on-budget. Design a 3 million gallon ground storage and booster station State law mandates that the Water/Wastewater Capital Recovery plan be updated at least every five years. The last study was 2011. GOALS FOR FY 2023-2024 PERFORMANCE INDICATORS CITY OF SCHERTZ 197 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 198 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 199 FUND: 421 CAPITAL RECOVERY FUND SEWER DESCRIPTION The Capital Recovery program is designated to support future growth of population and commercial water and wastewater demands without an impact on existing customers while keeping bond supported programs to a minimum. Capital Recovery projects are based on the number of connections sold to increase pumping, storage and transmission water lines, and wastewater programs. Impact funds (Capital Recovery) must be used within ten years of collection date. All water and wastewater improvements are constructed to meet State Board of Insurance and Texas Commission on Environmental Quality rules and regulations. PROGRAM JUSTIFICATION AND ANALYSISThe FY 2023-24 Budget will be set at $67,248 for any professional services or studies that need to be completed. FOOD/WATER Ensure the Texas Commission of Environmental Quality (TCEQ) rules and regulations are met for future growth. Continue to improve and provide an efficient and reliable water and wastewater system that meets all of the State rules and regulations and future growth in the community. Preliminary engineering and land acquisition for a waste water treatment plant for South Schertz. Initiate plans for the Southeast Quad Pump Station and the Ground Storage and Distribution Main for South Schertz. State law mandates that the Water/Wastewater Capital Recovery Plan be updated at least every five years. Last study was in 2011. Currently the Sedona WWTP serves the Crossvine Subdivision area but will be eliminated when the new CCMA WWTP comes on line. A sewer line and lift- station will be needed to accomplish this project. Initiate and institute a study to implement reuse water throughout the City. Provide citizens with quality projects completed on-time and on-budget. GOALS FOR FY 2023-2024 PERFORMANCE INDICATORS CITY OF SCHERTZ 200 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 201 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 DRAINAGE CITY OF SCHERTZ 203 REVENUE DRAINAGE Miscellaneous Income 2.0% Drainage Fees 98.0% DRAINAGE - REVENUE DRAINAGE FEES $1,321,850 PERMITS $10,200 INTER-FUND TRANSFERS $17,573 MISCELLANEOUS INCOME $27,000 TOTAL $1,376,623 CITY OF SCHERTZ 204 EXPENDITURES DRAINAGE Operation Support & Services 40.5% Personnel 43.0% Supplies 0.6% Professional & City Services 2.3% Utility & Maintenance Services 13.6% DRAINAGE - EXPENDITURES PERSONNEL $589,467 SUPPLIES $7,800 PROFESSIONAL & CITY SERVICES $31,644 UTILITY & MAINTENANCE SERVICES $186,000 OPERATION SUPPORT AND SERVICES $555,296 CAPITAL EXPENSE $224,000 DEBT SERVICE -- TOTAL $1,594,207 CITY OF SCHERTZ 205 FUND: 204 DRAINAGE FUND DESCRIPTION The Public Works Drainage Division provides essential services that contributes to a safer and more attractive community through the maintenance and management of drainage channels, storm water inlets, floodways, road right-of-way, alleys, and compliance with regulations, as well as reviewing subdivision plans and the issuance of permits for development that potentially affects drainage infrastructure. The revenues come from a fee charged to “users”. A “user” is any citizen or business that owns impervious surfaces and/or any man- made structure, such as buildings, parking lots, or driveways. Policy Value: Safe Community Protect lives and property. Policy and Operational Values: Essential Services and Proactive Adhere to best management practices in the maintenance of natural creek waterways and earthen channels to ensure water quality, reduce erosion, and increase conveyance. Policy and Operational Values: Safe Community and Systems Management Technical review and issuance of floodplain permits, flood insurance rate map revision, floodplain violation identification, coordination and mitigation support. Policy Value: Fiscally Sustainable Continue to evaluate, consider, and pursue all available resources forinnovative management of the drainage infrastructure. Review and update drainage fee for commercial properties. Evaluate most cost-effective means of mowing that meets community expectations. Strategic Plan Emphasis Project focus for FY 2023-24 GOALS FOR FY 2023-2024 ORGANIZATIONAL CHART CITY MANAGER DEPUTY CITY MANAGER PUBLIC WORKS STREETS WATER AND SEWER DRAINAGE CITY OF SCHERTZ 206 DRAINAGE FUND PERFORMANCE INDICATORS CITY OF SCHERTZ 207 DRAINAGE FUND PROGRAM JUSTIFICATION AND ANALYSIS Revenue: The FY 2023-24 Budget increase 4.7% from the FY 2022-23 year-end estimate from anticipated service additions. Expenses: The FY 2023-24 Budget will increase 6.9% from the FY 2022-23 year-end estimate for anticipated wage adjustments and equipment replacements and additional drainage channel maintenance projects. CITY OF SCHERTZ 208 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 209 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 210 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 211 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 212 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 EMERGENCY MEDICALSERVICES (EMS) CITY OF SCHERTZ 214 REVENUES E.M.S Miscellaneous Income 1.3% Inter-Jurisdictional Contracts 32.7% Ambulance/Mileage Fees 66.0% SCHERTZ - EMS AMBULANCE/MILAGE FEES $8,486,771 MISCELLANEOUS INCOME $166,000 INTER-JURISDICTIONAL CONTRACTS $4,207,452 TOTAL $12,860,223 CITY OF SCHERTZ 215 EXPENDITURES E.M.S Personnel 57.0% Capital Expense 5.1%% Operation Support & Service 25.8% Utility & Maintenance Services 2.3% Professional & City Services 6.6% Supplies 3.2% SCHERTZ EMS - EXPENDITURES PERSONNEL $7,778,652 SUPPLIES $440,425 PROFESSIONAL & CITY SERVICES $905,566 UTILITY & MAINTENANCE SERVICES $309,000 OPERATION SUPPORT & SERVICES $3,513,693 CAPITAL EXPENSE $693,500 DEBT SERVICE -- TOTAL $13,640,836 CITY OF SCHERTZ 216 FUND: 203 EMERGENCY MEDICAL SERVICES (EMS) DEPARTMENTAL DESCRIPTION Schertz Emergency Medical Services responds to 911 requests for ambulance service across a 230 square mile service area that includes the municipalities of Schertz, Cibolo, Live Oak, Marion, Santa Clara, Selma, Universal City, western Guadalupe County, Comal County Emergency Services District (ESD) #6 (about 25% of Comal County including the City of Garden Ridge) and JBSA Randolph. We also work with individual at-risk patients to insure they have the best access to primary healthcare and that their medical needs are being met before an emergency occurs. We educate our employees by providing over fifty hours of Continuing Education annually and over thirty hours for our first responders. We provide ambulance demonstrations and stand-by event coverage to further the knowledge of Emergency Medical Services and injury/illness prevention and preparedness. Policy Value: Essential Services Provide efficient pre-hospital healthcare services to the communities that we serve. Integrate the care that we provide with the rest of the healthcare system to reduce demand for 911 services while elevating access to care and appropriate destination management for the citizens we serve. Be the preferred employer for pre-hospital healthcare providers in the State of Texas Be thoroughly prepared for man-made and natural disasters in our jurisdiction, region, and statewide. Meet the needs of our customers and to solidify relationships and agreements with all eight cities, three counties and one Emergency Services District for which we provide service. Policy Value: Safe Community Provide appropriate and timely education and training to our employees and our first responders to ensure the best and most current standard of care is provided. Provide high quality pre-hospital training and community education for the communities we serve and the region as a whole. Provide education and assistance to the community to prevent and prepare them for medical emergencies through community education, demonstrations, immunizations, and CPR and Automatic External Defibrillator training programs. Strategic Plan Emphasis GOALS FOR FY 2023-2024 City Manager CITY MANAGER EMERGENCYMEDICALSERVICES(EMS) ORGANIZATIONAL CHART CITY OF SCHERTZ 217 EMERGENCY MEDICAL SERVICES (EMS) PERFORMANCE INDICATORS CITY OF SCHERTZ 218 EMERGENCY MEDICAL SERVICES (EMS) CITY OF SCHERTZ 219 EMERGENCY MEDICAL SERVICES (EMS) PROGRAM JUSTIFICATION AND ANALYSIS Revenue: Revenues for FY 2023-24 Budget are expected to increase 6.9% from FY 2022-23 year-end estimatesfrom an increase in transports and new service contracts with customer cities. Expenses: The FY 2023-24 Budget will increase 13.9% from the FY 2022-23 year-end estimate due to anticipated wage adjustments and the addition of 4 EMT positions. CITY OF SCHERTZ 220 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 221 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 222 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 223 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 224 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 SCHERTZECONOMICDEVELOPMENTCORPORATION CITY OF SCHERTZ 226 REVENUES ECONOMIC DEVELOPMENT Miscellaneous Income 16% Sales Tax 84% ECONOMIC DEVELOPMENT - REVENUE 4B SALES TAX $7,092,000 FUND TRANSFERS -- MISCELLANEOUS INCOME $1,315,000 TOTAL $8,407,000 CITY OF SCHERTZ 227 EXPENDITURES ECONOMIC DEVELOPMENT Fund Charges 84% Operations Staff 3% City Assistance 25% Professional Services 1% ECONOMIC DEVELOPMENT - EXPENDITURES SUPPLIES $1,000 PROFESSIONAL & CITY SERVICES $3,318,385 UTILITY & MAINTENANCE SERVICES $975 OPERATION SUPPORT & SERVICES $9,659,693 CAPITAL EXPENSE $5,000 DEBT SERVICE -- TOTAL $12,985,053 CITY OF SCHERTZ 228 Policy Value: Promote Economic Development Provide supportive tax base to balance increasing residential growth. Generate investments in undeveloped areas and improve quality oflife. Promote economic development opportunities for high valued employers of all sizes. Conduct incentive application analysis and engage in business recruitment. Grant 7 new projects during the Fiscal Year 23-24 Improve Economic Prosperity through Quality Developments, providing jobs that provide a High Quality of Life. Endorse programs to benefit small business Participating in 2 infrastructure projects that will provide Essential Services. Lead a discussion by participating with businesses to explore innovative ways in which the company can conserve natural resources. Engage public utilities to assist business success. Participate in 6 events to attract new businesses to the city. The Economic Development Corporation focuses on creation and retention of valuable, primary jobs and infrastructure improvements. We also look to engage the workforce to be innovative and proactive in our participation in the success of these projects. Strategic Plan Emphasis Project Focus for FY 2023-24 DEPARTMENT: ECONOMIC DEVELOPMENT CORPORATION FUND: 620 CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION DEPARTMENT DESCRIPTION The Economic Development Corporation helps to provide a supportive tax base and generate investment in undeveloped areas to improve quality of life. The City and the Corporation share the same objectives with a focus on infrastructure and our mission statement that has been adopted by the Board of Directors states that we grow the City of Schertz’s economy through projects. The department consists of four personnel and caters to the needs of 1,100 businesses and stakeholders. GOALS FOR FY 2023-2024 CITY OF SCHERTZ 229 ECONOMIC DEVELOPMENT ORGANIZATIONAL CHART PERFORMANCE INDICATORS CITY OF SCHERTZ 230 ECONOMIC DEVELOPMENT PROGRAM JUSTIFICATION AND ANALYSISRevenues: The SEDC receives one-half of one percent of all sales and use tax generated within the City of Schertz. The revenue for FY 2023-24 is projected to increase by 9.3% from the FY 2023-24 year-end estimate. The increase is reflective of an increase in sales tax revenue of 7% and additional investmentincome makes up the remainder. Expenses: The SEDC funds are restricted to those expenses authorized by the Texas Local Government Code sections 501 and 505. The expenses for FY 2023- 24 are projected to increase 7.2% to utilize the maximumallowed Marketing and Promotion dollars. Unspent Marketing and Promotion dollars may be carried forwardper State statute for Marketing and Promotion purposes. Project Expenses: The SEDC is funding improvements to Lookout Rd, signalization, and upsizing ofwastewater facilities in FY 2023-24. CITY OF SCHERTZ 231 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 232 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 233 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 234 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 SPECIALREVENUEFUNDS CITY OF SCHERTZ 236 FUND: 106 SPECIAL EVENTS DESCRIPTION The Special Events Fund is designated to monitor and manage funds appropriated to host community events, sponsored or co-sponsored, by the City of Schertz. Events include: Kick Cancer/Walk for Life and the Hal Baldwin Scholarship Program. City Manager PROGRAM JUSTIFICATION AND ANALYSIS Revenue: Revenue budget has increased due to a trend increase to sponsorships and event participation. It is now set at $45,000 each year and any additional covers event expenses. Expenses: The Special Events Fund FY 2023-24 Budget is set at $45,000 with no change in operations. CITY OF SCHERTZ 237 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 238 FUND: 110 PUBLIC, EDUCATIONAL, AND GOVERNMENT (PEG) ACCESS FUND DESCRIPTION The PEG Fund is dedicated to provide communication infrastructure in the City. This will allow the City to better reach the citizens with necessary information. This fund is commonly used for public access television and institutional network capacity. Currently the level of funding from the collected fees is not great enough to warrant a public access channel but could be used so in the future. City Manager PROGRAM JUSTIFICATION AND ANALYSIS Revenue: Revenues for FY 2023-24 Budget are expected to decrease by $10,000 from the FY 2022-23 year-endestimates as the community moves away from cable. Expenses: The PEG Fund FY 2023-24 Budget decreased to $67,000 from the FY 2022-23 year-end estimates with the continued implementation of the communication master plan. CITY OF SCHERTZ 239 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 240 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 241 FUND: 314 HOTEL/MOTEL OCCUPANCY TAX DESCRIPTION Revenues for the Hotel/Motel Fund are derived from a 7% tax on rooms rented in the City. There are five hotels in Schertz; the Best Western Plus with 61 rooms, Hampton Inn with 98 rooms, La Quinta with 81 rooms and Fairfield Inn with 118 rooms and Candlewood Suites with 80 rooms. These revenues are used to support Schertz as a destination location. Advertising campaigns to increase awareness of all Schertz has to offer reach citizens all across the State and beyond. PROGRAM JUSTIFICATION AND ANALYSISRevenue: Revenue for FY 2023-24 Budget is expected to decrease 16.1% from the FY 2022-23 year end estimates. FY 2022-23 received a lump sum of back taxes owed resulting in a higher revenue amount than is normal. Expenses: The Hotel Motel Tax Fund FY 2023-24 Budget increases 2.2% from FY 2022-23 year-end estimate. Fewer building maintenance and projects offset increases in the City Support Services grant program. CITY OF SCHERTZ 242 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 243 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 244 FUND: 317 PARK FUND DESCRIPTION The Park Fund is a special fund designated to monitor and manage funds for the management of the City of Schertz Urban Forest and capital improvements of the City of Schertz Park System. The Fund is composed of parkland dedication revenues. Revenues are derived from developer fees (in lieu of parkland dedication), local citizen groups, state, local nonprofit neighborhood associations, home owners associations (HOA’s), regional non-profit grants, and donations. PROGRAM JUSTIFICATION AND ANALYSIS Revenue: The revenue for FY 2023-24 Budget is expected to be $100,000 in anticipation of new development which will pay into the fund. Expenses: The FY 2023-24 Budget is set at $100,000 to utilize incoming funds for park improvements. CITY OF SCHERTZ 245 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 246 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 247 FUND: 319 TREE MITIGATION DESCRIPTION Tree mitigation fund is a special fund that is derived from revenue from permits for tree removal issued in connection with a building permit, subdivision plan, and site plan. These funds are used to replace trees on City Parks, City owned property, Public lands, and SCUCISD school property. PROGRAM JUSTIFICATION AND ANALYSISRevenue: The revenue for the FY 2023-24 Budget is expected to decrease 14.8% from 2022-23 year-end estimate following the previous years’ trends. Expenses: The FY 2023-24 Budget increases 7.1% from FY 2022-23 year-end estimate for additional treeplanting. CITY OF SCHERTZ 248 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 249 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 250 FUND: 431 ROADWAY IMPACT FEE AREA 1 DESCRIPTION The Roadway Impact Fee program is designated to support future growth of population and commercial roadway demands while keeping bond supported programs to a minimum. Impact funds must be used within ten years of collection date. Projects must meet requirements laid out in the impact fee study, including expanding roadway capacity by adding new roads or widening existing roads and funds must be spent in the area they are collected. The City is divided up in to 4 separate roadway zones. PERFORMANCE INDICATORS PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget will be set at $5,000 for any professional services or studies that need to be completed. CITY OF SCHERTZ 251 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 252 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 253 FUND: 432 ROADWAY IMPACT FEE AREA 2 DESCRIPTION The Roadway Impact Fee program is designated to support future growth of population and commercial roadway demands while keeping bond supported programs to a minimum. Impact funds must be used within ten years of collection date. Projects must meet requirements laid out in the impact fee study, including expanding roadway capacity by adding new roads or widening existing roads and funds must be spent in the area they are collected. The City is divided up in to 4 separate roadway zones. PERFORMANCE INDICATORS PROGRAM JUSTIFICATION AND ANALYSIS The FY 2023-24 Budget will be set at $58,000 for any professional services or studies that need to be completed and to reimburse developers for road construction. CITY OF SCHERTZ 254 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 255 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 256 FUND: 433 ROADWAY IMPACT FEE AREA 3 DESCRIPTION The Roadway Impact Fee program is designated to support future growth of population and commercial roadway demands while keeping bond supported programs to a minimum. Impact funds must be used within ten years of collection date. Projects must meet requirements laid out in the impact fee study, including expanding roadway capacity by adding new roads or widening existing roads and funds must be spent in the area they are collected. The City is divided up in to 4 separate roadway zones. PERFORMANCE INDICATORS PROGRAM JUSTIFICATION AND ANALYSISThe FY 2023-24 Budget will be set at $5,000 for any professional services or studies that need to becompleted. CITY OF SCHERTZ 257 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 258 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 259 FUND: 434 ROADWAY IMPACT FEE AREA 4 PERFORMANCE INDICATORS DESCRIPTION The Roadway Impact Fee program is designated to support future growth of population and commercial roadway demands while keeping bond supported programs to a minimum. Impact funds must be used within ten years of collection date. Projects must meet requirements laid out in the impact fee study, including expanding roadway capacity by adding new roads or widening existing roads and funds must be spent in the area they are collected. The City is divided up in to 4 separate roadway zones. PROGRAM JUSTIFICATION AND ANALYSISThe FY 2023-24 Budget will be set at $3,000 for any professional services or studies that need to becompleted. CITY OF SCHERTZ 260 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 261 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 262 FUND: 609 LIBRARY FUND DESCRIPTION The purpose of the Library Advisory Board is to provide citizen input to the City of Schertz on Library policy and operation and to raise community awareness of the library and its services. The Library Advisory Board oversees various fund-raising activities including the operation of the Read Before Bookstore and book consignment sales with all proceeds providing supplementary funding for library materials, programs, projects and building enhancements. PERFORMANCE INDICATORS PROGRAM JUSTIFICATION AND ANALYSISRevenues: Revenue for FY 2023-24 is expected to increase $7,290 from the FY 2022-23 estimate with awithdraw from their fund balance. Expenses: The Library Fund’s FY 2023-24 Budget will increase $7,000 from the FY 2022-23 year-end estimatefor additional funding for library projects. CITY OF SCHERTZ 263 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 264 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 265 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CITY OF SCHERTZ 266 FUND: 615 HISTORICAL COMMITTEE MISSION STATEMENT To gather, preserve, and make available to the public historical information regarding people, places, and events that have contributed to the development of the City of Schertz. DESCRIPTION This function is funded from the Special Events Fund by a transfer. The Historical Committee reviews locations for possible historic value and distributes books about the history of Schertz. PERFORMANCE INDICATORS PROGRAM JUSTIFICATION AND ANALYSISRevenues: Revenue for FY 2023-24 will remain at the same funding allocation as FY 2022-23. Expenses: The Historical Committee’s FY 2023-24 Budget will remain the same as the FY 2022-23 Budget. CITY OF SCHERTZ 267 CITY OF SCHERTZ OPERATING BUDGET2023-2024 CITY OF SCHERTZ 268 CITY OF SCHERTZ OPERATING BUDGET 2023-2024 CAPITALIMPROVEMENTPROJECTS (CIP) CITY OF SCHERTZ 270 CITY OF SCHERTZ CAPITAL IMPROVEMENTS WATER/SEWER CITY OF SCHERTZ 271 CITY OF SCHERTZ CAPITAL IMPROVEMENTS WATER/SEWER CONT. CITY OF SCHERTZ 272 CITY OF SCHERTZ CAPITAL IMPROVEMENTS DRAINAGE CITY OF SCHERTZ 273 CITY OF SCHERTZ CAPITAL IMPROVEMENTS DRAINAGE CONT. CITY OF SCHERTZ 274 CITY OF SCHERTZ CAPITAL IMPROVEMENTS DRAINAGE CONT. CITY OF SCHERTZ 275 CITY OF SCHERTZ CAPITAL IMPROVEMENTS STREETS/PARKS/FACILITIES CITY OF SCHERTZ 276 CITY OF SCHERTZ CAPITAL IMPROVEMENTS STREETS/PARKS/FACILITIES CONT. CITY OF SCHERTZ 277 CITY OF SCHERTZ CAPITAL IMPROVEMENTS STREETS/PARKS/FACILITIES CONT. CITY OF SCHERTZ 278 CITY OF SCHERTZ CAPITAL IMPROVEMENTS STREETS/PARKS/FACILITIES CONT. APPENDICES CITY OF SCHERTZ 280 CITY OF SCHERTZ POSITION AUTHORIZATIONFY 2023-2024 CITY OF SCHERTZ 281 CITY OF SCHERTZ POSITION AUTHORIZATION FY 2023-2024 CITY OF SCHERTZ 282 CITY OF SCHERTZ POSITION AUTHORIZATION FY 2023-2024 CITY OF SCHERTZ 283 CITY OF SCHERTZ POSITION AUTHORIZATION FY 2023-2024 CITY OF SCHERTZ 284 CITY OF SCHERTZ POSITION AUTHORIZATION FY 2023-2024 CITY OF SCHERTZ 285 CITY OF SCHERTZ POSITION LIST BY GRADEFY 2023-2024 CITY OF SCHERTZ 286 CITY OF SCHERTZ POSITION LIST BY GRADE FY 2023-2024 CITY OF SCHERTZ 287 CITY OF SCHERTZ POSITION LIST BY GRADE FY 2023-2024 CITY OF SCHERTZ 288 CITY OF SCHERTZ DEBT SERVICE REVIEW CITY OF SCHERTZ 299 CITY OF SCHERTZ CERTIFICATES OF OBLIGATION BONDSSERIES 2007 CITY OF SCHERTZ 290 CITY OF SCHERTZ GENERAL OBLIGATION BONDSSERIES 2007 II CITY OF SCHERTZ 291 CITY OF SCHERTZ GENERAL OBLIGATION REFUNDING BONDSSERIES 2013 CITY OF SCHERTZ 292 CITY OF SCHERTZ GENERAL OBLIGATION REFUNDING BONDSSERIES 2014 CITY OF SCHERTZ 293 CITY OF SCHERTZ GENERAL OBLIGATION REFUNDING BONDSSERIES 2015 CITY OF SCHERTZ 294 CITY OF SCHERTZ GENERAL OBLIGATION BONDSSERIES 2016 CITY OF SCHERTZ 295 CITY OF SCHERTZ GENERAL OBLIGATION BONDSSERIES 2016 CITY OF SCHERTZ 296 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2016A CITY OF SCHERTZ 297 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2016A CITY OF SCHERTZ 298 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2016B CITY OF SCHERTZ 299 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2016B CITY OF SCHERTZ 300 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2017 CITY OF SCHERTZ 301 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2017 CITY OF SCHERTZ 302 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2017 CITY OF SCHERTZ 303 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2017 CITY OF SCHERTZ 304 CITY OF SCHERTZ GENERAL OBLIGATION REFUNDINGSERIES 2018 CITY OF SCHERTZ 305 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2018 CITY OF SCHERTZ 306 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2018 CITY OF SCHERTZ 307 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2018 CITY OF SCHERTZ 308 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2018 CITY OF SCHERTZ 309 CITY OF SCHERTZ GENERAL OBLIGATION AND REFUNDING BONDSSERIES 2018 CITY OF SCHERTZ 310 CITY OF SCHERTZ GENERAL OBLIGATION AND REFUNDING BONDSSERIES 2018 CITY OF SCHERTZ 311 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2019 CITY OF SCHERTZ 312 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2019 CITY OF SCHERTZ 313 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2019 CITY OF SCHERTZ 314 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2019 CITY OF SCHERTZ 315 CITY OF SCHERTZ GENERAL OBLIGATION REFUNDING BONDSSERIES 2020 CITY OF SCHERTZ 316 CITY OF SCHERTZ GENERAL OBLIGATION REFUNDING BONDSSERIES 2020 CITY OF SCHERTZ 317 CITY OF SCHERTZ GENERAL OBLIGATION REFUNDING BONDSSERIES 2021 CITY OF SCHERTZ 318 CITY OF SCHERTZ GENERAL OBLIGATION REFUNDING BONDSSERIES 2021 CITY OF SCHERTZ 319 CITY OF SCHERTZ GENERAL OBLIGATION REFUNDING BONDSSERIES 2021 CITY OF SCHERTZ 320 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2022 CITY OF SCHERTZ 321 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2022 CITY OF SCHERTZ 322 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2022 CITY OF SCHERTZ 323 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2022 CITY OF SCHERTZ 324 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2022A CITY OF SCHERTZ 325 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2022A CITY OF SCHERTZ 326 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2022A CITY OF SCHERTZ 327 CITY OF SCHERTZ CERTIFICATES OF OBLIGATIONSERIES 2022A CITY OF SCHERTZ 328 CITY OF SCHERTZ GENERAL OBLIGATION BONDSSERIES 2022 CITY OF SCHERTZ 329 CITY OF SCHERTZ GENERAL OBLIGATION BONDSSERIES 2022 CITY OF SCHERTZ 330 CITY OF SCHERTZ THE SCHERTZ/SEGUIN LOCAL GOVERNMENT CORPORATIONGENERAL REVENUE BONDS FINANCIAL POLICIES PURPOSE The Comprehensive Financial Management Policy Statements assembles all of the City’s financial policies into one document. These statements are the tools used to ensure that the City is financially able to meet its current and future service needs. The individual statements contained herein serve as guidelines for both the financial planning and internal financial management of the City. Municipal resources must be wisely used to ensure adequate funding for the services, public facilities, and infrastructure necessary to meet immediate and long-term needs. These policy statements safeguard the fiscal stability required to achieve the City’s objectives and ensure long-term financial health. OBJECTIVES a. To guide City Council and management policy decisions that have significant fiscal impact. service levels. c. To maintain appropriate financial capacity for present and future needs. downturn. the City’s financial condition. of the City’s debt obligations on all municipal debt. controls. financing and delivery of services. b. To employ balanced revenue policies that provides adequate funding for services and d. To maintain sufficient reserves so as to maintain service levels during periods of economic e. To promote sound financial management by providing accurate and timely information on f. To protect the City’s credit rating and provide for adequate resources to meet the provisions g. To ensure the legal use of financial resources through an effective system of internal h. To promote cooperation and coordination with other governments and the private sector in ACCOUNTING, AUDITING, AND FINANCIAL REPORTING Maintain accounting practices that conform to generally accepted accounting principles and comply with prevailing federal, state, and local statutes and regulations. Provide for, prepare and present regular reports that analyze and evaluate the City’s financial performance and economic condition. Accounting Practices and Principles The City will maintain accounting practices that conform to generally accepted accounting principles (GAAP) as set forth by the Governmental Accounting Standards Board (GASB), the authoritative standard setting body for units of local government. All City financial documents, except interim financial reports, including official statements accompanying debt issues, Comprehensive Annual Financial Reports and continuing disclosures statements will meet these standards. Quarterly interim financial reports are on a cash basis, or Fund Balance basis, and will be reported as budgeted. At year-end, the general ledger and financials will be converted to GAAP and GASB. Financial and Management Reporting 1. Interim Financial Reports will be provided quarterly to management and City Council that explain key economic and fiscal developments and note significant deviations from the budget. These reports will be distributed quarterly by the end of the month following the end of the quarter. 2. Quarterly, departments will report on program measures and indicators as compared to target and last year to Finance. A quarterly report will be submitted to the City Manager, highlighting significant variations. CITY OF SCHERTZ 331 3. As an additional independent confirmation of the quality of the City’s financial reporting, the City will annually seek to obtain the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting. Annual Audit 1. Pursuant to State Statute, the City shall have its records and accounts audited annually and shall have an annual financial statement prepared based on the audit. The audit shall be performed by a certified public accounting (CPA) firm, licensed to practice in the State of Texas. The annual financial statement, including the auditor’s opinion, shall be filed within 180 days after the last day of the City’s fiscal year. The audit firm shall also provide a Single Audit of Federal and State grants, when necessary. An official Comprehensive Annual Financial Report (CAFR) shall be issued no later than six (6) months following the end of the fiscal year. The Director of Finance shall be responsible for establishing a process to ensure timely resolution of audit recommendations. 2. Audit Committee. The Mayor shall appoint or confirm the audit committee, consisting of at least two members of the City Council. The primary purpose of the audit committee is to assist City Council and the City Manager in fulfilling oversight responsibilities for financial reporting, audit processes, and effective internal control systems. The City shall maintain an Audit Committee Charter which outlines the duties and responsibilities of the audit committee. 3. Annual Financial Disclosure. As required by the Securities and Exchange Commission (SEC) Rule 15c2-12, the City will provide certain annual financial information to various information repositories through disclosure documents or set of documents that include the necessary information. This will include any periodic material event notices as required by the SEC. The City contracts with SAMCO Capital Markets, Inc. to file the annual disclosures to the appropriate entities. Signature of Checks Pursuant to the City Charter, all checks shall have two signatures, signed by the City Manager and countersigned by the City Secretary, or the City Treasurer. City Treasurer is further defined as the Director of Finance. Signatures shall be affixed on all City checks via facsimile signatures with a secure laser check printing system. Compliance with Council Policy Statements The Financial Management Policy Statements will be reviewed bi-annually and updated, revised or refined as deemed necessary. Policy statements adopted by City Council are guidelines, and occasionally exceptions may be appropriate and required. Exceptions will be identified, documented, and explained to City Council and/or the City Manager BUDGET AND LONG RANGE FINANCIAL PLANNING Establish guidelines for budgeting to ensure a financially sound City and to establish a long-range financial planning process that assesses the long-term financial implications of current and proposed operating and capital budgets. Balanced Budget The City Manager shall file annually, a structurally balanced budget for the ensuing fiscal year with City Council pursuant to the prevailing state and local law. A structurally balanced budget is further defined as recurring revenues funding recurring expenditures and adherence to fund balance policies. Current Funding Basis (Recurring Revenues) FINANCIAL POLICIES CITY OF SCHERTZ 332 FINANCIAL POLICIES The City shall budget and operate on a current funding basis. Recurring expenditures shall be budgeted and controlled so as not to exceed current revenues. Recurring expenses will be funded exclusively with recurring revenue sources to facilitate operations on a current funding basis. Use of Non-Recurring Revenues Non-recurring revenue sources, such as a one-time revenue remittance of fund balance in excess of policy can only be budgeted/used to fund non-recurring expenditures, such as capital purchases or capital improvement projects. This will ensure that recurring expenditures are not funded by non recurring sources. Tax Rate The City Manager will recommend a tax rate that the City finances require in order to operate efficiently, yet effectively, and pay its debt. i. Homestead Exemption total exemption percentage granted shall not exceed the state statute limitation. ii.Over-Age and Disabled Persons Exemptions considering increasing the homestead exemption. The City shall review the homestead exemption annually as part of the budget process. When the financial health of the City’s finances and economic and market conditions of the local economy justify, the City Manager may recommend a change to the homestead exemption. In accordance with state statute, any recommended change in the homestead exemption will be presented to Council for approval prior to July 1. The The City currently grants a $40,000 exemption for persons 65 or older and for disabled persons. This amount shall remain stable during a period in which the City is Pay As You Go Capital Projects The transfer from the City’s General Fund and the City’s Utility Fund to fund pay-as-you-go capital projects will be budgeted when financially feasible and when projects present themselves for funding. The transfer will be based on the financial health of each fund with the long-term goal of adequately funding rehabilitation. 1. In order to protect the City from revenue shortfalls and to maintain a stable level of service, the City shall use a conservative, objective, reasonable and analytical approach when preparing revenue estimates. The process shall include historical collection rates, trends, development, and probable economic changes. This approach is intended to reduce the likelihood of actual revenues falling short of budget estimates and should avoid mid-year service changes. 2. The City, whenever possible, will seek outside sources of revenue, such as federal, state, and local grants, in order to leverage local dollars. 3. Estimates from grant sources will be projected only to the specific date on which on the entitlement will end. 4. The Utility Fund water and wastewater revenues will be budgeted based on the average rainfall/consumption over the last three years, pursuant to the rate model. The City will anticipate neither drought nor wet conditions. Revenue Estimating for Budgeting Performance, Merit Pool, and Market Adjustment Increases The budget shall include an amount adequate to cover an overall average performance and merit pool as determined annually by the City Manager. This amount will be calculated for each fund, based on budgeted CITY OF SCHERTZ 333 salaries for the year, and will be placed in a Performance and Merit Pool in each operating fund. In addition, funds may be budgeted when appropriate, to bring identified jobs up to market salary rates. 1. Department Directors have primary responsibility for formulating budget proposals. New or expanded services should support the City’s Strategic Plan, City Manager priority direction, and department goals. Departments are charged with implementing them once they are approved. 2. All competing requests for City resources will be weighed within the formal annual budget process. 3. Actions on items that come up throughout the year with significant financial impacts should be withheld until they can be made in the full context of the annual budget process and long-range plan, unless unforeseen circumstances present themselves. 4. Every five (5) years at a minimum or sooner as may be necessary, the City will incorporate a service needs review into the budget process, to ensure the most efficient and effective use of resources. Budget Management The City Council shall delegate authority to the City Manager in managing the budget after it is formally adopted by City Council, including the transfer of funds within departments and use of contingency funds while following purchasing policy. The City Manager may further delegate levels of authority for the daily operations of the budget. Expenditures/expenses are legally adopted by the fund level. Expenditures/expenses should not exceed the adopted budget, plus subsequent changes approved by the City Council. Performance Measurement Performance measures will be utilized and reported in department budgets. The City will maintain a measurement system that reports trends and comparisons to targets and previous year as a management tool to monitor and improve service delivery. Operating Deficits The City shall take immediate corrective action if at any time during the fiscal year expenditure and revenue re-estimates are such that “net income” is lower than budgeted. Deferral of capital equipment purchases Deferral of pay-as-you go capital improvements • Expenditure reductions Deferral of certain positions Hiring freezes Freeze merit increases Use of fund balance Use of volunteers Increase fees Reduce work hours with subsequent reduction in pay Eliminate positions which may require laying-off employees if there are not other vacant positions for which they are qualified. Corrective actions include: Short-term loans as a means to balance the budget shall be avoided. Budget Preparation The use of fund balance, which is a one-time revenue source, may be used to fund an annual operating deficit, only with a subsequent approval of a plan to replenish the fund balance if it is brought down below policy level. CITY OF SCHERTZ 334 FINANCIAL POLICIES FINANCIAL POLICIES 1. The City shall develop and maintain a five-year Financial Forecast for each major operating fund, in conjunction with the annual budget process. Major operating funds are as follows: • General Fund • Debt Service Fund • Water/Sewer Utility Fund • Economic Development Corporation • Emergency Medical Services Fund • Drainage Fund 2. The forecast should enable current services and current service levels provided to be sustained over the forecast period. Operating impacts from completed capital improvement projects in the City’s Five-Year CIP shall be included in the forecast. Commitments/obligations already made that require future financial resources shall also be included. 3. The forecasts should identify the impact to property taxes and utility rates. 4. Major financial decisions should be made in the context of the Long- Range Plan. The forecast assesses long-term financial implications of current and proposed policies, programs, and assumptions that develop appropriate strategies to achieve the City’s goals. The forecast will provide an understanding of available funding; evaluate financial risk; assess the likelihood that services can be sustained; assess the level at which capital investment can be made; identify future commitments and resource demands; and identify the key variables that may cause change in the level of revenue. REVENUES Design, maintain, and administer a revenue system that will assure reliable, equitable, diversified, and sufficient revenue stream to support desired City services. Balance and Diversification in Revenue Sources The City shall strive to maintain a balanced and diversified revenue system to protect the City from fluctuations in any one source due to changes in local economic conditions, which may adversely impact that source. User Fees – General Fund. 1. For services that benefit specific users, the City shall establish and collect fees to recover the costs of those services. Where services provide a general public benefit, the City shall recover the costs of those services through property and sales taxes. 2. At a minimum, the City will strive to cover direct costs. 3. User fees should be reviewed, at a minimum, every two to three years and adjusted to avoid sharp changes. 4. Factors in setting fees shall include, but not be limited to: market and competitive pricing, effect of demand for services, and impact on users, which may result in recovering something less than direct, indirect, and overhead costs. 5. The City may set a different fee for residents versus non-residents. 6. User fees should be adopted by Council Ordinance and included in the Annual Fee Schedule. Long-Range Financial Plans CITY OF SCHERTZ 335 FINANCIAL POLICIES User Fees - Enterprise Funds 1. Utility rates and other Enterprise Fund user fees shall be set at levels sufficient to cover operating expenditures (direct and indirect), meet debt obligations and debt service coverage, provide pay-as-you-go funding for capital improvements, and provide adequate levels of working capital. 2. The City may set a different fee for residents versus non-residents. 3. The Five-Year Financial Plan (rate model) and proposed operating budget shall serve as the basis for rate change considerations. 4. When necessary, the Five-Year Financial Plan (rate model) will be built around smaller rate increases annually versus higher rate increases periodically. One - Time/Unpredictable Revenue Sources 1. One-time, unpredictable revenue sources should not be used for ongoing expenses/expenditures. 2. One-time, unpredictable revenue sources will be used for one-time purchases such as increase in fund balance requirements, capital equipment purchases, capital improvements, etc. Revenue Collection The City shall maintain high collection rates for all revenues by monitoring monthly receivables. The City shall follow an aggressive, consistent, yet reasonable approach to collecting revenues to the fullest extent allowed by law for all delinquent taxpayers and others overdue in payments to the City. Revenues actually received will be compared to budgeted revenues by the Director of Finance and any variances considered to be material will be investigated. This process will be summarized in the monthly financial report. Write-off of Uncollectible Receivables (excludes property taxes, court fines and warrants) 1. Receivables shall be considered for write-off as follows: a. State statute authorizing the release of extinguishment, in whole or in part, of any indebtedness, liability, or obligation, if applicable. b. Accounts outstanding with no activity for 180 days, identified as uncollectible, and all attempts to collect have been taken. 2. Accounts shall be written-off quarterly. Upon approval, accounts will be forwarded to a credit reporting agency. 3. The write-off of uncollected accounts is a bookkeeping entry only and does not release the debtor from any debt owed to the City. EXPENDITURES Identify services, establish appropriate service levels and administer the expenditure of available resources to assure fiscal stability and the effective and efficient delivery of those services. Maintenance of Capital Assets Within the resources available each fiscal year, the City shall maintain capital assets and infrastructure at sufficient level to protect the City’s investment, to minimize future replacement and maintenance costs, and to maintain service levels. CITY OF SCHERTZ 336 Periodic Program/Services Reviews The City Manager and staff shall undertake periodic reviews of City programs and services for both efficiency and effectiveness. Programs or services determined to be inefficient and/or ineffective shall be recommended through the annual budget process to be reduced in scope or eliminated. Purchasing All City purchases of goods and services shall be made in accordance with the City’s current Purchasing manual. RESERVES Maintain the fund balance and working capital of the various operating funds at levels sufficient to protect the City’s credit worthiness as well as its financial position during emergencies or economic fluctuations. General Fund Unreserved Fund Balance The City shall maintain the General Fund unreserved fund balance equivalent to 26% of recurring operating expenditures, based on current year expenditures. If the fund balance exceeds this amount, funding non- recurring expenditures in the following fiscal year may be used to draw down the balance. Water/Sewer Unreserved Working Capital The City shall maintain a working capital sufficient to provide for reserves for emergencies and revenue shortfalls. A cash equivalent operating reserve will be established and maintained at 26% of the current year’s budget appropriation for recurring operating expenses. The cash operating reserve is derived by dividing the total cash equivalents balance by recurring operating expenses. Use of Fund Balance/Working Capital Fund balance/Working Capital shall only be used for emergencies, nonrecurring expenditures/expenses or major capital purchases that cannot be accommodated through current year savings. Should such use reduce balances below the level established as the objective for that fund, restoration recommendations will accompany the request/decision to utilize said balances. Debt Service Fund Unreserved Fund Balance The City shall maintain the debt service fund balance at 10% of annual debt service requirements OR a fund balance reserve as required by bond ordinances, whichever is greater. Employee Benefits Fund Unreserved Fund Balance The Employee Benefits Fund is funded through City and employee contributions. Estimated costs shall be determined during each budget year and the contributions adjusted accordingly. There is no minimum balance for this fund. Economic Development Corporation As sales tax revenue fluctuates due to changes in economic conditions, the SEDC shall maintain an unreserved fund balance of no less than 10% of budgeted sales tax revenues. Water/Sewer Revenue Debt Coverage Reserves Revenues shall be maintained at 1.15 times coverage in a fiscal year. Bond Issuance Reserves Debt service reserves should be maintained for each bond issue as required by bond covenants. CITY OF SCHERTZ 337 FINANCIAL POLICIES FINANCIAL POLICIES CAPITAL EXPENDITURES AND IMPROVEMENTS Annually review and monitor the state of the City’s capital equipment and infrastructure, setting priorities for its replacement and renovation based on needs, funding alternatives, and availability of resources. Capitalization Threshold for Tangible Capital Assets 1. Tangible capital items should be capitalized only if they have an estimated useful life of 2 years or more following the date of acquisition or significantly extend the useful life of the existing asset and cannot be consumed, unduly altered, or materially reduced in value immediately by use and have a cost of not less than $5,000 for any individual item. 2. The capitalization threshold of $5,000 will be applied to individual items rather than to a group of similar items. (i.e.: desks, chairs, etc.) 3. To maintain adequate control over capitalized tangible items, items costing $5,000 and greater will be monitored, tagged, and tracked through the City financial software system. 4. Accurate inventories of all tangible items will be maintained to ensure proper stewardship of public property. Ten-Year Captial Improvement Plan (CIP) 1. The City shall annually prepare a ten-year capital improvement plan based on the needs for capital improvements and equipment, the status of the City infrastructure, replacement and renovation needs, and potential new projects. Capital projects are improvements or additions to the City’s physical plant/facilities/infrastructure and become a part of the City’s asset inventory. Capital projects can be further categorized into land, buildings, improvements other than buildings, and infrastructure, which includes roads, sidewalks, bridges, utility lines, physical plants, etc. Capital costs typically consist of preliminary design, final design, and construction, and may involve the acquisition of land or easements. For purposes of the CIP Plan, a Capital Improvement Project should generally exceed a cost of $100,000. 2. For the most part, projects in the CIP should be based upon master plans or developer agreements. This ensures that the City’s CIP, which is the embodiment of the recommendations of these individual planning studies, is responsive to the officially stated direction of the City as contained in the Comprehensive Plan and supporting master plans. Examples of these supporting documents are: Water and Wastewater Modeling Plans, Thoroughfare Plan, Parks Master Plan, Trail Plan, Municipal Facilities Plan, etc. 3. For every project identified in the CIP, a project scope and project justification will be provided. Also, project costs shall be estimated, funding sources identified and annual operation and maintenance costs computed. 4. Parks Board and the Planning and Zoning Commission will be provided opportunities to review the list of CIP projects for the CIP and may suggest additions and/or changes to the plan as appropriate. 5. Annually, through the budget process and at year-end, projects are to be reviewed. For those identified as complete, any remaining funds will close to fund balance. For those projects with identified savings, the project budget will be reduced and the subsequent savings will flow to fund balance. These funds can then be reappropriated during the next fiscal year capital budget. Funds remaining from bond proceeds will only be used in accordance with the legal use of those funds. 6. Appropriations for capital projects are for the life of the project; therefore reappropriation of capital funding for each fiscal year for budgeted projects is not necessary. CITY OF SCHERTZ 338 FINANCIAL POLICIES Infrastructure Evaluation and Replacement/Rehabilitation Water, wastewater, drainage, street lighting, streets and sidewalks, municipal facilities and other infrastructure are fundamental and essential functions for public health and safety, environmental protections and the economic well being of the City. As a result, the City’s CIP should be focused on ensuring that infrastructure is replaced as necessary to protect the City’s investment, to minimize future replacement and maintenance costs, and to maintain existing levels of service and accommodate growth. 1. High priority should be given to replacing/rehabilitating capital improvements prior to the time that they have deteriorated to the point where they are hazardous, incur high maintenance costs, negatively affect property values, or no longer serve their intended purpose. 2. The decision on whether to repair, replace or to rehabilitate an existing capital asset will be based on which alternative is most cost-effective, which would include life-cycle costing, and provides the best value to the City. Replacement of Capital Assets on a Regular Schedule (Fleet, Fire Trucks, and High-Tech) The City shall annually prepare a schedule for the replacement of its fleet, fire trucks, and high technology capital assets. Funding for the replacement of these assets will be accomplished through the annual budget process, within the resources available each fiscal year. A variety of funding options will be explored, including but not limited to cash on hand and lease/purchase, based upon a determination of what would be in the best interest of the City. Capital Expenditure Financing The City recognizes that there are three basic methods of financing its capital requirements: Funding from current revenues; funding from fund balance; or funding through the issuance of debt. Types of debt and guidelines for issuing debt are set forth in the Debt Policy Statements. Pay-As-You-Go Capital Improvements 1. The City will pay cash for capital improvements within the financial affordability of each fund versus issuing debt when funding capital improvements and capital purchases. This will reduce/minimize the property tax and utility rate impacts on Pearland citizens. 2. The City will seek out and use intergovernmental funding sources for capital improvements in order to leverage City funding and to minimize property and utility rate impacts. Capital Improvements/Project Reporting A summary/status report on the City’s various capital projects will be prepared quarterly and available to the City Manager and to City Council. Income statements on the City’s CIP funds will be prepared quarterly and include budget-to-actual for each project as well as list of major contracts, expense to date, and % contract completion. DEBT Establish guidelines for debt financing that will provide needed facilities, land, capital equipment and infrastructure improvements while minimizing the impact of debt payments on current and future revenues. Use of Debt Financing Debt financing, to include general obligation bonds, revenue bonds, certificates of obligation, certificates of participation, lease/purchase agreements, and other obligations permitted to be issued or incurred under Texas law, shall only be used to purchase capital assets that cannot be prudently acquired from either current revenues or fund balance and to fund infrastructure improvements and additions. Debt will not be used to fund current operating expenditures. CITY OF SCHERTZ 339 FINANCIAL POLICIES The City will pay cash for capital improvements within the financial affordability of each fund versus issuing debt when funding capital expenditures and capital improvements, which shall include, but not be limited to, sales tax, utility system revenues, developer fees, inter-local agreements, and state and federal grants. Affordability The City shall use an objective analytical approach to determine whether it can afford to issue general- purpose debt, both General Obligation and Certificates of Obligation, water/sewer debt, sales tax revenue debt, and any other financing permitted by State law. The process shall include an internal feasibility analysis for each long-term financing which analyzes the impact on current and future budgets, which would include the tax and utility rates. The process shall also include the benefits of the proposed projects. The decision on whether or not to issue new debt shall be based on the benefits of the project, current conditions of the municipal bond market, and the City’s ability to “afford” new debt. In no case will the City issue general obligation debt that will require a debt service tax rate of $1.50 per $100 assessed valuation, based on a 90% collection rate, which is the maximum tax rate permitted by State law. Types of Long-Term Debt 1. General Obligation Bonds (GO) General Obligation bonds require voter approval and are secured by a promise to levy taxes in an amount necessary to pay annual debt service. a. General Obligation bonds must be issued for projects that are in accordance with the wording in the bond proposition. 2. Certificates of Obligation Certificates of Obligation may be issued without voter approval to finance any public works project or capital improvement, as permitted by State law. It is the City’s policy to utilize Certificates of Obligation to finance public improvements in certain circumstances and only after determining the City’s ability to assume additional debt. Circumstances in which Certificates might be issued include, but are not limited to the following. a. The City may issue CO’s when there is insufficient funding on a general obligation bond-financed capital improvement. b. The City may issue CO’s when “emergency” (urgent, unanticipated) conditions require a capital improvement to be funded rapidly. c. The City may issue CO’s for projects when the City can leverage dollars from others to reduce the City’s capital cost for a community improvement. d. The City may issue CO’s for projects when there is no other adequate funding source available (ie: GO or developer funding), the project is determined to be in the best interest of the City, and where a determination is made that waiting for the next bond referendum or having a bond referendum for a small amount of money or a small number of projects is impractical and where public notice versus a voted bond referendum is deemed acceptable by the City Council. e. The City may issue CO’s if it would be more economical to issue Certificates of Obligation rather than issuing revenue bonds; and f. The City may issue CO’s for projects for which the City will be reimbursed by Developer (principal plus interest) CITY OF SCHERTZ 340 FINANCIAL POLICIES 3. Revenue Bonds Revenue bonds are generally payable from a designated source of revenue. They do not require voter approval. For the City to issue new revenue bonds, revenues, as defined in the ordinance authorizing the revenue bonds in question, shall meet the bond coverage ratio as defined in the ordinance. Annual adjustments to the City’s rate structures for Enterprise Funds will be made as necessary to maintain the coverage factor. If the City should issue CO’s for Water/Sewer Improvements, the Water/Sewer Fund will pay the annual debt service associated with the issue. Debt Structures The City shall normally issue bonds with a life not to exceed 25 years for general obligation bonds and 30 years for revenue bonds, but in no case longer than the useful life of the asset. The City shall seek level or declining debt repayment schedules and shall seek to retire 90% of the total principal outstanding within 20 years of the year of issuance. There should be no debt structures that include increasing debt service levels in subsequent years, with the first and second year of a bond payout schedule the exception or as special situations may warrant. There shall be no “balloon” bond repayment schedules, which consists of low annual payments and one large payment of the balance due at the end of the term. There shall always be at least interest paid in the first fiscal year after a bond sale and principal payments starting generally no later than the second fiscal year after the bond issue. Normally, there shall be no capitalized interest included in the debt structure except for debt issuances reimbursing developers for infrastructure or in the case in which the project will generate revenue, but it takes a couple of years to produce the revenue. Capitalized interest should normally not exceed 2 years. The City currently has a level debt service structure. As such, unless there is growth (increased valuation, increase in number of connections, etc.) or reallocation of the tax rate to debt service, there is no room for additional debt without increasing rates. The City shall seek to begin making attempts to structure future debt issuances, where affordable, to a declining structure. The City will issue debt based on a fixed rate and will limit use of variable-rate debt due to the potential volatility of such instruments. Debt Refunding The City’s financial advisor shall monitor the municipal bond market for opportunities to obtain interest savings by refunding outstanding debt. As a general rule, the net present value savings of a particular refunding should exceed 3.0% of the refunded maturities unless (1) a debt restructuring is necessary or (2) bond covenant revisions are necessary to facilitate the ability to provide services or to issue additional debt or (3) the refunding is combined with a new debt issuance Interest Earnings on Debt Proceeds Debt interest earnings will be limited to funding changes to the bond financed Capital Improvement Plan in compliance with the voted propositions, cost overruns on bond projects, or be applied to debt service payments on the bonds issued. CITY OF SCHERTZ 341 Bond Elections 1. Timing of general obligation bond elections shall be determined by the inventory of current authorized, unissued bonds remaining to be sold and the Five-Year Capital Improvement Plan. 2. The total dollar amount of bond election propositions recommended to the voters should typically not exceed the City’s estimated ability to issue the bonds within a 7- year period. 3. An analysis showing how the new debt combined with current debt impacts the City’s tax rate and debt capacity will accompany every future bond issue proposal. FINANCIAL POLICIES Sale Process The City shall use a competitive bidding process in the sale of debt unless the nature of the issue warrants a negotiated sale. The City will utilize a negotiated process when the issue is, or contains, a refinancing that is dependent on market/interest rate timing, if the interest rate environment or market/economic factors may affect the bond issue, or if the nature of the debt is unique and requires particular skills from the underwriters involved. The City shall award the bonds based on a true interest costs (TIC) basis. However, the City may award bonds based on a net interest cost (NIC) basis as long as the financial advisor agrees that the NIC basis can satisfactorily determine the lowest and best bid. Underwriting Syndicates The City’s financial advisor shall attempt to involve qualified and experienced firms, which consistently submit ideas to the City and financial advisors and actively participate in the City’s competitive sale in its negotiated underwritings. In conjunction with the City, the City’s financial advisor shall recommend the structure of underwriting syndicates, which will be optimal for the type and amount of debt being issued. Bond Ratings Full disclosure of operations and open lines of communications shall be maintained with the rating agencies. Credit ratings will be sought from one or more of the nationally recognized municipal bond rating agencies, as recommended by the City’s financial advisor. The City will continually strive to maintain or increase the City’s current bond ratings by prudently managing its funds and by reviewing and monitoring financial policies, budgets, forecasts and the financial health of the City. Covenant Compliance The City will comply with all covenants stated in the bond ordinance, including providing for annual disclosure information and providing for material event notices. Arbitrage Rebate Monitoring and Reporting Arbitrage is the interest earned on the investment of bond proceeds above the interest paid on the debt. The City will maintain a system of recordkeeping and reporting to meet the arbitrage rebate compliance requirement of the IRS regulation. The recordkeeping shall include tracking project expenditures, interest earned on the bonds, calculating rebate payments, and remitting any rebatable earnings to the federal government in a timely manner in order to preserve the tax-exempt status of the outstanding debt. Arbitrage rebate calculations will be performed annually on all debt issues and the liability recorded for any positive arbitrage. Due to the specialized nature of the calculations, this function will typically be outsourced. Lease/Purchase Agreements The City will use lease/purchase agreements for the acquisition of equipment when it is cost-effective and provides for attractive terms. All lease purchase agreements will be approved by City Council no matter the dollar amount. CASH MANAGEMENT AND INVESTMENTS To maintain the City’s cash in such a manner so as to ensure the absolute safety of principal, to meet the liquidity needs of the City, and to achieve the highest possible yield. Investment Management CITY OF SCHERTZ 342 FINANCIAL POLICIES 1. All aspects of cash/investment management shall be designed to ensure safety and integrity of the City’s financial assets. 2. Cash/Investment management activities shall be conducted in full compliance with prevailing local, state, and federal regulations. (See City’s Investment Policy and Strategy) 3. The City will utilize competitive quotes from approved broker/dealers, affording no special advantage to any individual or corporate member of the financial or investment community. 4. The City will only do business with City authorized broker/dealers and/or financial institutions as approved by Council and who have executed a written certification of their review of the City’s Investment Policy. 5. The City shall design and establish policies relating to a variety of cash/investment management issues, such as the eligibility and selection of various broker/dealers, safekeeping requirements, collateral requirements, delivery versus payment requirements, weighted average maturity requirements and other such aspects of the program, which necessitate standard setting in pursuit of appropriate prudence and enhanced protection of assets. (See City’s Investment Policy) 6. Investments of the City shall be made with the exercise of judgment and care which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment. Investment Strategy The City of Schertz maintains a consolidated portfolio in which it pools its funds for investment purposes. The City’s investment program seeks to achieve safety of principal, adequate liquidity to meet cash needs, and reasonable yields commensurate with the preservation of principal and liquidity. (See City’s Investment Strategy) Interest Income Interest earned from investments shall be distributed to the funds from which the funds were provided. Arbitrage Investments Investment on bond proceeds will be made with safety of principal and liquidity in mind, but with a competitive rate of return. If there is positive arbitrage, the rebatable earnings will be sent to the IRS, as necessary. Depository The City will select its official bank through a formal bidding process in order to provide the City with the most comprehensive, flexible, and cost-effective banking services available. The City will, at a minimum, bid depository services every five years. The City will review the financial health of the City’s depository annually to include but not be limited to earnings, assets, capital, and liquidity. Collateralization of Deposits CITY OF SCHERTZ 343 1. The City shall have pledged collateral held at an independent third-party institution and evidenced by a written receipt. 2. The value of the pledged collateral should be marked to market monthly and shall be at least 102 percent of par or market value of the investments, whichever is greater. 3. Substitutions of collateral shall meet the requirements of the collateral agreement. Collateral shall not be released until the replacement collateral has been received, if the release of the collateral should result in the value being under 102 percent of par value. The pledge of collateral shall comply with the City’s investment policy. Summary: Schertz, Texas; General Obligation Primary Credit Analyst: Jackie Dove, Centennial + 3037214317; jackie.dove@spglobal.com Secondary Contact: Andy A Hobbs, Dallas + 1 (972) 367 3345; Andy.Hobbs@spglobal.com Table Of Contents Rating Action Stable Outlook Credit Opinion Related Research WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JULY 12, 2022 1 344 Summary: Schertz, Texas; General Obligation Credit Profile US$19.855 mil comb tax and ltd pledge rev certs of oblig ser 2022A dtd 08/01/2022 due 02/01/2042 Long Term Rating AA+/Stable New US$19.845 mil GO bnds ser 2022 dtd 08/01/2022 due 02/01/2042 Long Term Rating AA+/Stable New Schertz comb tax and ltd pledge rev certs of oblig Long Term Rating AA+/Stable Affirmed Schertz comb tax and ltd pledge rev certs of oblig (Taxable) Long Term Rating AA+/Stable Affirmed Schertz GO Long Term Rating AA+/Stable Affirmed Schertz GO and rfdg bnds Long Term Rating AA+/Stable Affirmed Rating Action S&P Global Ratings assigned its 'AA+' long-term rating to Schertz, Texas' proposed $19.8 million series 2022 general obligation (GO) bonds and $19.8 series 2022A combination tax and limited pledge revenue certificates of obligation. At the same time, we affirmed our 'AA+' rating on the city's GO bonds outstanding. The outlook is stable. Schertz's GO bonds and certificates constitute direct obligations of the city, payable from the proceeds of a continuing, direct annual ad valorem tax, within the limits prescribed by law, on all taxable property within its borders. The maximum allowable ad valorem tax rate in Texas is $2.50 per $100 of assessed value (AV) for all purposes, with the portion dedicated to debt service limited to $1.50. The city's total tax rate is well below the maximum, at 51.21 cents, 16.04 cents of which is dedicated to debt service. Based on the application of our criteria, titled "Issue Credit Ratings Linked To U.S. Public Finance Obligors’ Creditworthiness" (published Nov. 20, 2019), we view the limited-tax GO debt pledge on par with the city's general creditworthiness. The ad valorem taxes are not levied on a narrower or distinctly different tax base, and there are no limitations on the fungibility of resources available for the payment of debt service. Bond proceeds will be used for road and fire station construction. Proceeds from the certificates will fund additional street and water projects. The certificates of obligation have a limited pledge of net revenues from the city's combined utility system--not to exceed $1,000. Given the limited revenue pledge, we rate the certificates based on the city's ad valorem pledge. Credit overview Schertz is a fast-growing community outside San Antonio with growth in residential, commercial, and industrial sectors, which support continued revenue stability. In fiscal years 2020 and 2021 the city reported double-digit sales WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JULY 12, 2022 2 345 tax growth and it expects further strong performance in fiscal 2022. City officials attribute the strong sales tax trends primarily to an essential-services-driven sales tax base, but they also note that sales tax related to construction boosted revenues. Given the city's history of stable operating performance, framework of frequent budget monitoring, and significant available reserves, we do not expect material changes in the city's financial position or debt burden over the near term supporting the stable outlook. The rating reflects our view of Schertz's: • Strong local economic metrics driven by favorable location outside San Antonio; • Conservative budgeting and growth in sales tax revenues leading to consistent operational surpluses leading to very strong reserve position; • Strong financial policies and practices with frequent budget monitoring and strong institutional framework; and • Elevated debt burden due to growth related pressures with plans to borrow in the near term. Environmental, social, and governance We assessed the city's environmental, social, and governance risks relative to its economy, management, financial measures, and debt and liability profile, and determined that all are neutral in our credit analysis. Stable Outlook Downside scenario We could lower the rating if Schertz's financial performance deteriorates, leading to sustained and significant drawdowns in reserves. Upside scenario We could raise the rating if continued economic expansion results in improved wealth and income indicators, compared with those of higher-rated peers, or if the city's overall debt profile improves materially while strong financial performance is maintained. Credit Opinion Rapidly growing community outside San Antonio Schertz is approximately 22 miles northeast of San Antonio between Interstates 10 and 35. The city's location along major transportation corridors provides residents convenient access to various employment centers throughout the San Antonio metropolitan statistical area. It also attracts key industries such as distribution and warehousing, which further expand the local employment base. Economic growth in Schertz remains steady, reflecting construction and development activity in residential, retail, and industrial sectors. The development pipeline includes several residential subdivisions, commercial and office space construction, and a hotel. As a result of ongoing development, the tax base grew robustly, averaging 5.5% per year in the past five years, with the expectation that the growth will continue as developments are finished. We consider the WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JULY 12, 2022 3 Summary: Schertz, Texas; General Obligation 346 local tax base diverse, with the 10 leading taxpayers accounting for only 5.7% of taxable AV. Very strong management indicating financial practices are well embedded and likely sustainable. Schertz city management analyzes five years of historical trends and consults with outside sources when developing the revenue and expenditure assumptions used in the annual budget process. Budget amendments can be made as needed, while budget-to-actual updates are shared with city council quarterly. Management uses a long-term financial plan, updated annually, which projects revenues and expenditures for five years. Formal capital improvement plans (CIPs) are also maintained for roads and general capital needs and are updated annually. While a new general CIP is generated every five years corresponding with the city's bond election cycle, the roadway plan spans 10 years, and it provides comprehensive outlines of the city's street- and thoroughfare-related projects. Schertz's formal debt management and investment policies comply with state statutes, and the city council reviews quarterly investment reports on holdings. Furthermore, the formal reserve policy requires a minimum of 25% operating expenditures plus an additional 1% to be used to mitigate economic fluctuations. Consistent positive budgetary performance leading to very strong preserve position The city's strong budgetary performance is demonstrated by its consistently positive operating results, which have provided the flexibility to fund one-time capital projects with excess revenue. Fiscal 2021 resulted in a $1.7 million surplus prior to a sizable transfer to the capital projects fund. In total, tax revenues were approximately $1.6 million over budget in 2021, which was driven by new developments and inflation, according to management. At fiscal year-end 2021 the city's available fund balance increased to $13.2 million, despite making a substantial transfer to the capital projects fund ($2.3 million). This transfer was similar to one made in fiscal 2020, in which the city transferred $4 million from the general fund and $500,000 from the economic development fund to the capital projects fund for future projects. Schertz has historically maintained very strong reserve levels, exceeding 40% operating expenditures in each of the past four fiscal years and providing substantial flexibility above its formal policy threshold of 26%. Management indicates that it might use fund balance to cash finance future capital projects to bring reserves close to the formal policy level. For fiscal 2022, management projects positive variance in the budget that will likely result in a $1.6 million strategic draw on reserves largely driven by one-time capital projects to replace the financial software and make HVAC repairs to the animal adoption center. The city has historically maintained what we consider very strong reserves and cash balances, and given budgetary performance trends, we do not believe its reserve or cash position will materially weaken in the near term, despite plans to spend down reserves, in line with its formal policy Weak debt and contingent liability profile with additional debt plans In a November 2021 election, the electorate authorized $15.45 million to construct a new fire station, of which the district is issuing all of that authorization, in addition to the certificates of obligation, which do not require voter authorization. Schertz's direct debt burden consists of $100.8 million of tax-backed debt including GO bonds, tax notes, and certificates of obligation. Our ratios have been adjusted to reflect the portion of tax-backed debt supported by the city's water and sewer fund. The city intends to issue an additional $6 million in 2023 and another $10 million in 2024 for road and utility construction. Schertz does not have any swaps or variable-rate debt, but it does have four series of debt that have been privately placed, with principal outstanding of $6.5 million (5.8% of total direct debt), with one WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JULY 12, 2022 4 Summary: Schertz, Texas; General Obligation 347 series set to mature in August 2022. However, the obligations do not contain any provisions, such as acceleration or nonstandard events of default that we view as a potential liquidity risk. With this sizable debt issuance and additional debt plans in the next two years, we expect the city's debt burden will remain elevated in the medium term. Pension and other postemployment benefits obligations We do not view pension and other postemployment benefits (OPEB) liabilities as a source of credit risk for the city, as required contributions currently represent an affordable share of total governmental expenditures. The city participates in the following plans as of Dec. 31, 2020 (latest measurement date): • Texas Municipal Retirement System (TMRS), 82.3% funded with a net pension liability equal to $14.9 million. • Supplemental Death Benefits Fund (SDBF), offering term life insurance to retirees. However, the city's participation in the plan is voluntary and can be discontinued in any year at council discretion. Therefore, we do not view OPEB liabilities as a credit risk. • Single-employed defined benefit health care plan, which offers an implicit rate subsidy to retirees until they achieve Medicare eligibility. The total OPEB liability for retiree health care was $2.5 million. TMRS' actuarially determined contributions fell short of our minimum funding progress (MFP) metric. The MFP metric assesses whether the most recent employer and employee contributions cover total service cost, plus unfunded interest cost, plus one-thirtieth of the principal. When MFP is achieved, it indicates that an issuer has a strong funding discipline that aims to ensure timely progress on reducing its plans' liabilities. The plans use certain assumptions that could increase contribution volatility, including a 6.75% discount rate, which we view as aggressive, though there are other offsetting factors. For more information on pensions, see "Pension Spotlight: Texas," published Feb. 25, 2020, on RatingsDirect. Despite the potential for contribution volatility, we expect strong reserves would allow the city to absorb the increases with minimal disruption to financial performance in the near term. Schertz's combined required pension and actual OPEB contributions totaled 8.9% of total governmental fund expenditures in 2021. The city made its full required pension contribution in 2021. Strong institutional framework The institutional framework score for Texas municipalities is strong. Schertz, Texas--Key Credit Metrics Most recent Historical information 2021 2020 2019 Strong economy Projected per capita EBI % of U.S.106.7 Market value per capita ($)110,993 Population 42,865 41,765 41,130 County unemployment rate(%)4.4 Market value ($000)4,757,706 4,070,815 4,321,880 Ten largest taxpayers % of taxable value 5.7 WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JULY 12, 2022 5 Summary: Schertz, Texas; General Obligation 348 Schertz, Texas--Key Credit Metrics (cont.) Most recent Historical information 2021 2020 2019 Strong budgetary performance Operating fund result % of expenditures 5.2 4.8 6.8 Total governmental fund result % of expenditures 25.4 4.7 17.9 Very strong budgetary flexibility Available reserves % of operating expenditures 40.8 40.8 52.6 Total available reserves ($000)13,258 12,098 14,809 Very strong liquidity Total government cash % of governmental fund expenditures 136.5 135.0 209.3 Total government cash % of governmental fund debt service 841.5 814.0 1,144.9 Very strong management Financial Management Assessment Strong Very weak debt and long-term liabilities Debt service % of governmental fund expenditures 16.2 16.6 18.3 Net direct debt % of governmental fund revenue 193.3 Overall net debt % of market value 7.2 Direct debt 10-year amortization (%)61.2 Required pension contribution % of governmental fund expenditures 8.9 OPEB actual contribution % of governmental fund expenditures 0.0 Strong institutional framework Data points and ratios may reflect analytical adjustments. EBI--Effective buying income. OPEB--Other postemployment benefits. Related Research • U.S. Regions' Economies Perk Up As The Pandemic's Impact Ebbs, April 16, 2021 • S&P Public Finance Local GO Criteria: How We Adjust Data For Analytic Consistency, Sept. 12, 2013 • Alternative Financing: Disclosure Is Critical To Credit Analysis In Public Finance, Feb. 18, 2014 • Criteria Guidance: Assessing U.S. Public Finance Pension And Other Postemployment Obligations For GO Debt, Local Government GO Ratings, And State Ratings, Oct. 7, 2019 • Through The ESG Lens 3.0: The Intersection Of ESG Credit Factors And U.S. Public Finance Credit Factors, March 2, 2022 • 2020 Update Of Institutional Framework For U.S. Local Governments Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. 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S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages. Copyright © 2022 by Standard & Poor’s Financial Services LLC. All rights reserved. 350 GLOSSARY A designation assigned to an accounting entry where a running total of all entries is kept. It is a grouping of assets, liabilities, reserves, retained earnings, revenues, or expenses. The generally accepted accounting principles (GAAP) set by the Governmental Accounting Standards Board (GASB) that guide the recording and reporting of financial information. A short term liability (less than one year) showing the amounts currently owed for goods and services received by the City. A short term asset (less than one year) showing the amount currently due to the City for goods and services pro An accounting method in which revenues and expenses are recorded at the time they occur, rather than when cash is traded hands. Used for financial reports Commonly referred to as property taxes. The charges levied on all real and certain personal property according to the property's assessed value and the tax rate. Used to support the General Fund and pay general obligation debt. The budget as approved by the City Council. It sets the legal spending limits and funding sources for the fiscal year. A value set upon real estate or other property as a basis for levying property taxes. For the City of Schertz, the Appraisal Districts of Bexar, Comal, and Guadalupe Counties are responsible for assessing property values. Resources of the City that cover liability obligations. This expense is used to recognize the City's estimated amount of uncollectable revenue. A budget where current revenues meet or exceed current expenses resulting in a positive fund balance at the end of the fiscal year. Are a long term debt issued by the City to pay for large capital projects such as buildings, streets, and water/sewer system improvements. The schedule of key dates used as a guide to complete various steps of the budget preparation and adoption processes. ACCOUNT ACCOUNTING STANDARDS ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCRUAL ACCOUNTING AD VALOREM TAXES ADOPTED BUDGET ASSESSED VALUE ASSET BAD DEBT EXPENSE BALANCED BUDGET BOND BUDGET CALENDAR CITY OF SCHERTZ 351 GLOSSARY Expenditures for the construction, purchase, or renovation of City facilities or property. CAPITAL IMPROVEMENTS Purchase of property or equipment greater than $5,000 which will be added to the City's fixed assets. CAPITAL OUTLAY Currency on hand with the bank CASH An accounting method that recognizes revenues and expenses when cash enters or leaves the bank instead of when services are provided. CASH BASIS Tax supported bonds similar to general obligation bonds and can be issued after meeting strict publication requirements and council approval. CERTIFICATES OF OBLIGATION A document that establishes the city's governmental structure and provides distribution of powers and duties. In order to be implemented or changed it must be approved with a vote by the people CHARTER The elected governing body of the City, consisting of the Mayor and five (5) council members acting as the legislative and policy-making bod of the City. CITY COUNCIL Client Resource Management - a type of software for tracking dates, events, and clients. CRM Payments on debt made up of principle and interest following a set schedule. DEBT SERVICE Property taxes remaining unpaid after the due date. Delinquent taxes incur penalties and interest at rates specified by law. DELINQUENT TAXES A functional group of the City with related activities aimed at accomplishing a major City service or program. DEPARTMENT In accounting, this is a noncash expense that reduces the value of a capital asset over its expected useful life. DEPRECIATION The rate that would produce the same amount of property taxes from the properties on the previous year's tax rolls. EFFECTIVE TAX RATE See Proprietary Fund.ENTERPRISE FUNDS Any payment made by the City. EXPENDITURE Any reduction in Fund Balance. EXPENSE CITY OF SCHERTZ 352 FISCAL YEAR The time period designated by the City signifying the beginning and ending period for recording the financial transactions of the City. The City of Schertz' fiscal year begins each October 1st and ends the following September 30th. GLOSSARY Assets of a long-term character which are intended to be held or used, such as land, buildings, machinery, furniture, and equipment. FIXED ASSETS Full Time Equivalent (FTE) is a measure of employment of a position based on the total hours worked in a week versus the expected 40 hours of a full time employee. FTE A fiscal and accounting entity established to record receipt and disbursement of income from sources set aside to support specific activities or to attain certain objectives. Each fund is treated as a distinct fiscal entity where assets equal liabilities plus fund balances. FUND The difference between fund assets and fund liabilities of governmental and trust funds. FUND BALANCE The difference between assets and liabilities of any fund. FUND EQUITY The major fund in most governmental entities. It contains many activities associated with municipal government, such as police and fire rescue, libraries, parks and recreation. GENERAL FUND A municipal bond backed by property taxes GENERAL OBLIGATION BONDS Department/Division objectives intended to be accomplished or begun within the coming fiscal year. GOALS Funds, or specific groups of revenues and expenses, including the General Fund, Special Revenue Funds, Capital Project Funds, and Debt Service Funds. GOVERNMENTAL FUND Interest and Sinking - The portion of the property tax that goes to pay debt issued by the City I&S See Debt Service Fund. INTEREST & SINKING FUND Cities which have over 5,000 in population and have adopted home rule charters. HOME RULE CITY Transfer made from one City fund to another City Fund for the purpose of reimbursement of expenditures, general and administrative services, payments-in-lieu of taxes, or debt service. Revenues from other governments in the form of grants, entitlements, shared revenues, or payments-in-lieu of taxes. Service contracts? Debt or other legal obligations arising out of transactions in the past that must be liquidated, renewed, or refunded at some future date. The term does not include encumbrances. Living Unit Equivalent, the amount of water in gallons per year that an average household would produce INTERFUND TRANSFERS INTERGOVERNMENTAL REVENUES LIABILITY LUE’S CITY OF SCHERTZ 353 GLOSSARY Acronym for "maintenance and operations". (1) The recurring costs associated with a department or activity; (2) the portion of the tax rate that is applied to the General Fund. The basic purpose of a department/division - the reason for its existence. A tax imposed on the gross receipts of a licensee for the sale, preparation, or serving of mixed beverages. Method of governmental accounting recognizes revenues when they are measurable and available and expenditures when goods or services are received with the exception of principal and interest on long term debt. Plans of current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing activities of the City are controlled. Proprietary Fund expenses related directly to the Fund's primary activity. A formal legislative enactment by City Council. A payment made to the City in lieu of taxes. These payments are generally made by tax exempt entities for which the City provides specific services. For example, the City's Water & Sewer Fund provides this payment to the City's General Fund because of the Water & Sewer Fund's exemption from property taxation. M&O MISSION MIXED BEVERAGE TAX MODIFIED ACCRUAL BASIS OPERATING BUDGET OPERATING EXPENSES ORDINANCE PAYMENT-IN-LIEU OF TAXES Also referred to as Enterprise Fund. A governmental accounting fund in which services are provided, such as water and sewer service, are financed and operated similarly to those in a private business. The intent is that the costs of providing these services be recovered through user charges. A special or temporary order of the City Council. Requires less formality than an ordinance. An equity account reflecting the accumulated earnings of a proprietary fund. PROPRIETARY FUND RESOLUTION RETAINED EARNINGS Bonds whose principal and interest are payable exclusively from earnings of a proprietary fund. Accounts for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. REVENUE BONDS SPECIAL REVENUE FUND CITY OF SCHERTZ 354 GLOSSARY The total net taxable value after exemptions of all real and personal property in the City. The result of multiplying the ad valorem property tax rate per one hundred dollars times the tax base. The rate applied to all taxable property to general revenue. The City's tax rate is comprised of two components; the debt service rate, and the maintenance and operations (M&O) rate. The official list showing the amount of taxes levied against each taxpayer or property. See also Tax Base. Compulsory charges levied by a government to finance services performed for a common benefit. The Texas Municipal Retirement System provides retirement plans to its member cities. Each city selects its own plan and its contributions are computed on each individual city's plan and actuarial information. A general discussion and overview of the proposed budget as presented in writing by the City Manager to the City Council The amount of an appropriation that is not expended or encumbered. It is essentially the amount of money still available for future purchases. TAX BASE TAX LEVY TAX RATE TAX ROLL TAXES TMRS TRANSMITTAL LETTER UNENCUMBERED BALANCE The payment of a fee for direct receipt of a public service by the party who benefits from the service. See Proprietary Fund. The desired optiumum state or ultimate goal of the City or Department. USER CHARGES UTILITY FUND VISION CITY OF SCHERTZ 355