Agenda

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10.

City Council Regular Meeting

Meeting Date:

08/09/2022

BACKGROUND

Workshop on the Proposed FY 2022-23 Budget and highlights from the General Fund, W&S Fund, EMS Fund, Drainage Fund, SEDC, and Restricted Revenue Funds.

General Fund revenues for FY 2022-23 Budget are expected to increase 3.1% from the FY 2021-22 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 6% and sales taxes are estimated to increase 6%.

These increases are offset by a projected decrease in commercial building permits and large deployment reimbursements received.

The overall General Fund FY 2022-23 Budget increased 0.3% from the FY 2021-22 year-end estimates. This includes annual wage increases and 15 new personnel.

This budget also includes additional funding for street preservation and maintenance as well as a parking lot surfacing for building 27 to provide the needed additional parking and storage.

In addition, the FY 2022-23 budget includes IT upgrades for Internet and fiber to add additional high-speed connection to the internet and create better network load balancing for internet connectivity.

The IT budget will also increase with the funding for software. A new eProcurement and Contract management software to allow for increased participation in the bidding process and more effective contract management. Funding for a joint project with IT and Police to replace the current RMS software with a more efficient system.

The Water & Sewer Fund revenues for FY 2022-23 Budget are expected to decrease 0.6% from the FY 2021-22 year-end estimate increase is fees are offset by lower fund transfers. The FY 2022-23 Budget increases 2.8% from the FY 2021-22 year-end estimates.

The Drainage Fund FY 2022-23 revenues increase 14.5% from the FY 2021-22 year-end estimate from a fund transfer from reserves for equipment replacements.  The FY 2022-23 Budget will increase 28.3% from the FY 2021-22 year-end estimate for wage increases and equipment replacements.

The EMS Fund revenues for FY 2022-23 Budget are expected to increase 1.2% from FY 2021-22 year-end estimates from an increase in transports that is offset by lower funding from the Texas Ambulance Supplemental Payment Program (TASSP). The FY 2022-23 Budget will increase 1.7% from the FY 2021-22 year-end estimate. The addition of 8 new person and wage increases is offset by debt service being paid off and vehicle replacements made in FY 2021-22.

The Schertz Economic Development Corporation (SEDC) receives one-half of one percent of all sales and use tax generated within the City of Schertz. The revenue for FY 2022-23 is projected to increase by 6.7% from the FY 2021-22 year-end estimate. The increase is reflective of an increase in sales tax revenue. The SEDC funds are restricted to those expenses authorized by the Texas Local Government Code sections 501 and 505. The expenses for FY 2022-23 are projected to increase by 67.9% to accommodate costs associated with signage on Schertz Parkway Overpass, and Master Planning for comprehensive Request for Information (RFI) responses, and continued work with the Retail Coach on site analysis and planning. Unspent Marketing and Promotion dollars may be carried forward per State statute for Marketing and Promotion purposes.

The annual budget is required to have a public hearing before adoption. Staff recommends holding that hearing on August 23, and September 6, and adopt the budget on second reading on September 13, 2022. This follows the regulations set by the state in the Local Government Code on budget adoption chapter 102.

GOAL

To review the budget and proposed changes.

COMMUNITY BENEFIT

The Proposed Budget is submitted to the City Council and is available on the website for the public to review.

SUMMARY OF RECOMMENDED ACTION

No action taken tonight. There will be a public hearing on the budget on August 23rd and on September 6th prior to adoption.

FISCAL IMPACT

The General Fund budget is balanced to the tax rate of $0.4665, which would raise the average tax bill by $40.68 annually. This would allow for additional street funding, 15 new positions, and wage adjustments.

The Water & Sewer budget is balanced with an increase of 5% on the water rates and 4% on sewer rates which would allow for additions to the parallel pipeline project securing additional water resources for the City. Operations will receive utility bill text messaging services, water and sewer planning software, and a portable back up pump for liftstation emergencies.

The EMS budget is balanced with and will fund 8 new positions needed to change from 24 hour shifts to 12 hour shifts and to run additional trucks during peak times. These additional personnel will be net cost neutral as they will reduce overtime and allow for more transports.

RECOMMENDATION

No action tonight, staff will return with a public hearing on August 23 and September 6 and adoption ordinance on September 7 and September 13.

Attachments
FY 2022-23 Proposed Budget