In accordance with applicable statutes and the City Charter, the City Manager submitted a budget proposal to the City Council for consideration on August 11, 2023. The City Council will hold public hearings for the Proposed Budget on August 15, 2023 and, September 5, 2023.

The Budget Priorities for FY 2023-24 are as follows:
Goal 1: Staff Compensation - turnover is high and hiring is difficult due to non-competitive wages. Staff hopes to correct this by making compensation a budget priority.
Goal 2: Infrastructure - the City's roadways, parks, facilities, and drainage channels need additional maintenance and reconstruction. Staff is also looking at adding and expanding streets, parks, drainage channels, water transportation pipes and storage, and wastewater transportation pipes to meet the growing needs of the community as outlined in the master thoroughfare plan, the master parks plan, and the master water and sewer plan.
Goal 3: Consolidated CIP Document - this document will lay out a consolidated plan for the City's large infrastructure projects and outline funding sources allowing the City Manager and City Council to see the impact of infrastructure projects within a 5 to 10 year window and plan accordingly.
Goal 4: Increase staffing levels - adding key staff in services areas that will have the largest impact on operations and the community.
Goal 5: New/Remodeled Facilities - with additional staff coming on board, the City will need to look at office spaces and new service locations as the community continues to expand.

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 country 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 grow by 4.7% and is the basis for the adjustment recommendation. This ECI adjustment is proposed to take effect in October 2023 with the new budget.

Based on staff's review of target cities' wages in the area, there was strong indication Schertz was 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 determine wages and compensation compared to the market and how to adjust wages to get Schertz' positions to market. Based on the original review by Staff, an estimated $2.6 million of adjustments could be required, 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.

The City also saw an increase in health insurance costs of 7.5% for FY 2023-24.

To continue the infrastructure improvements, staff recommends withdrawing $1 million from General Fund Reserves. This is in addition to the $650,000 that is part of the base Streets Budget, and $4.5 million in funding from the Schertz Economic Development Corporation Reserves for roadway improvements. Staff also plans to issue $37.25 million in debt in the General Fund for other infrastructure projects, like Main Street Improvements and $7.5 million in Water & Sewer to continue the transmission line from East Live Oak to IH 35. 

In the General Fund, Staff proposes to add 5 new positions based on the recommendations of Staff and Council. The positions include:
- 3 Firefighters in preparation of Station 4
- Engineering Administrative Assistant 
- Part Time Records Clerk to assist with the increased open records requests in the City Secretary's office
- 5 additional police officers have been added to the approved position table, but not funded, to allow the City to more quickly hire School Resource Officers

The Water & Sewer Fund proposes to add a new Lead Clerk position for Utility Billing. 

The Emergency Medical Services Fund proposes to add 4 Emergency Medical Technicians (EMTs) to field additional ambulance hours to meet service call volumes.

Other items in the General Fund that are being proposed are the following programs, projects, and equipment:
-Replace all in-car cameras, body worn cameras, and TASERs for police officers 
-Add additional Library materials budget
-Add an ArcGIS IndoorMaps Extension for building mapping capabilities
-Add new servers for Public Safety
-Reassign court security funding from operations to fund larger projects
-Add new Hydrolic Hose Crimper and Hose Reels for Fleet
-Add new Tablets and Trailer for Facilitiy Services
-Add new Opticom system to control intersection lights for Public Safety
-Add new Hurst Strong Arm Multi-purpose Tool to add in rescue operations in Fire
-Add new Pothole Truck and Asphalt Laydown Machine in Streets

The Water & Sewer Fund will add:
-Automated Phone Payment System
-Combination Vaccume Truck
-Funding for Fire Hydrant and Valve replacements across the city

Drainage will replace a zero turn mower.

The Special Revenue Funds Budgets will remain constant with no significant changes in operations.

A copy of the proposed budget is available for view on the City’s webpage www.schertz.com. This copy will include all changes included in the change memo.
 

Per state statutes and the City Charter, the city must adopt a budget prior to the beginning of the fiscal year beginning on October 1st.

This budget will provide for additional resources to areas identify by citizens, city council, and staff.
 

Staff recommends that the City Council approve the first reading of Ordinance No. 23-T-18, adopting the budget for the fiscal year beginning October 1, 2023, and ending September 30, 2024.

Fund	Proposed Budget	Fund Balance Change
General Fund	$49,954,992	($2,564,504)
Tax I&S Fund	8,602,745	732,255
Water & Sewer Fund	31,241,901	262,899
Capital Recovery - Water	55,748	1,166,252
Capital Recovery - Sewer	67,248	632,752
Drainage  Fund	1,594,207	(217,584)
EMS Fund	13,640,835	(780,612)
SEDC	12,985,053	(4,578,053)
Special Events Fund	45,000	0
PEG Fund	67,000	0
Hotel Occupancy Fund	260,865	640,635
Park Fund	100,000	0
Tree Mitigation	75,000	10,750
Roadway Impact Fee Area1	5,000	320,175
Roadway Impact Fee Area2	85,000	160,650
Roadway Impact Fee Area3	5,000	345,250
Roadway Impact Fee Area4	3,000	360
Library Fund	29,200	0
Historical Committee	11,750	2,500
Total:	$118,829,544	($3,866,275)

Staff recommends that the City Council approve the first reading of Ordinance No. 23-T-18, adopting the budget for the fiscal year beginning October 1, 2023 and ending September 30, 2024.