Agenda No. 11.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | August 6, 2024 |
| Department: | Finance |
| Subject: | Proposed FY 2024-25 Budget - Workshop and Discussion on the Proposed FY 2024-25 Budget. (S.Williams/S.Gonzalez/J. Walters) |
BACKGROUND
The attached powerpoint is from the Council budget retreat on Friday, August 2. Staff will be working between now and the meeting to provide options.
Workshop on the Proposed FY 2024-25 Budget and highlights from the General Fund, W&S Fund, EMS Fund, Drainage Fund, SEDC, and Restricted Revenue Funds.
General Fund revenues for FY 2024-25 Budget are expected to increase 4.7% from the FY 2023-24 year-end estimate. The largest contributor to this increase will be from property and sales taxes. The property taxes for FY 2024-25 are estimated to increase 3.9% and sales taxes are estimated to increase 6%.
The overall General Fund FY 2024-25 Budget increased 4.1% from the FY 2023-24 year-end estimates. This includes annual wage increases, operational cost increases, additional TIRZ funding, and technology updates for Public Safety..
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.
The Water & Sewer Fund revenues for FY 2024-25 Budget are expected to increase 3.3% from the FY 2023-24 year-end estimate with an increase in population and fees. The FY 2024-25 Budget increases 9.7% from the FY 2023-24 year-end estimates with the additional of 5 Water/Sewer Workers and a Meter Techician. Also included are 6 new vehicles and a mini-dump truck.
The Drainage Fund FY 2024-25 revenues increase 10.1% from the FY 2023-24 year-end estimate due to a recalculation of fee amounts for commercial properties. The FY 2024-25 Budget will decrease 5.9% from the FY 2023-24 year-end estimate with fewer capital purchases.
The EMS Fund revenues for FY 2024-25 Budget are expected to increase 13.6% from FY 2023-24 year-end estimates from an increase in transport fees. The FY 2024-25 Budget will increase 2.7% from the FY 2023-24 year-end estimate with the proposed wage adjustments, the addition of a Battalion Chief, adding a peak hours truck to help with call volume, and reclassifying the part-time Supply Coordinator to full-time. .
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 2024-25 is projected to increase by 24.9% from the FY 2023-24 year-end estimate. The increase is reflective of an increase in sales tax revenue of 6% and investment income . The SEDC funds are restricted to those expenses authorized by the Texas Local Government Code sections 501 and 505. The expenses for FY 2024-25 are set to use maximum allowed Marketing and Promotion allotment.
The annual budget is required to have a public hearing before adoption. Staff recommends holding that hearing on August 20, 2024 and September 3, 2024 and adopt the budget after the second public hearing on September 3, 2024. This follows the regulations set by the state in the Local Government Code on budget adoption chapter 102.
Workshop on the Proposed FY 2024-25 Budget and highlights from the General Fund, W&S Fund, EMS Fund, Drainage Fund, SEDC, and Restricted Revenue Funds.
General Fund revenues for FY 2024-25 Budget are expected to increase 4.7% from the FY 2023-24 year-end estimate. The largest contributor to this increase will be from property and sales taxes. The property taxes for FY 2024-25 are estimated to increase 3.9% and sales taxes are estimated to increase 6%.
The overall General Fund FY 2024-25 Budget increased 4.1% from the FY 2023-24 year-end estimates. This includes annual wage increases, operational cost increases, additional TIRZ funding, and technology updates for Public Safety..
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.
The Water & Sewer Fund revenues for FY 2024-25 Budget are expected to increase 3.3% from the FY 2023-24 year-end estimate with an increase in population and fees. The FY 2024-25 Budget increases 9.7% from the FY 2023-24 year-end estimates with the additional of 5 Water/Sewer Workers and a Meter Techician. Also included are 6 new vehicles and a mini-dump truck.
The Drainage Fund FY 2024-25 revenues increase 10.1% from the FY 2023-24 year-end estimate due to a recalculation of fee amounts for commercial properties. The FY 2024-25 Budget will decrease 5.9% from the FY 2023-24 year-end estimate with fewer capital purchases.
The EMS Fund revenues for FY 2024-25 Budget are expected to increase 13.6% from FY 2023-24 year-end estimates from an increase in transport fees. The FY 2024-25 Budget will increase 2.7% from the FY 2023-24 year-end estimate with the proposed wage adjustments, the addition of a Battalion Chief, adding a peak hours truck to help with call volume, and reclassifying the part-time Supply Coordinator to full-time. .
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 2024-25 is projected to increase by 24.9% from the FY 2023-24 year-end estimate. The increase is reflective of an increase in sales tax revenue of 6% and investment income . The SEDC funds are restricted to those expenses authorized by the Texas Local Government Code sections 501 and 505. The expenses for FY 2024-25 are set to use maximum allowed Marketing and Promotion allotment.
The annual budget is required to have a public hearing before adoption. Staff recommends holding that hearing on August 20, 2024 and September 3, 2024 and adopt the budget after the second public hearing on September 3, 2024. 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 20th and on September 3rd prior to adoption.
FISCAL IMPACT
The General Fund budget is balanced to the tax rate of $0.4990, which would raise the average tax bill by $63.47 annually. This would allow for additional
The Water & Sewer budget is balanced with an increase of 2% on the water rates and 3% on sewer rates which would allow for operational improvements and a bond issuance to fund the Capital Improvement Plan for FY 2024-25.
The EMS budget will fund 1 new positions needed to change from 24 hour shifts to 12 hour shifts for the Battalion Chiefs, to run additional trucks during peak times, and to move the supply coordinator from part-time to full-time.
The Water & Sewer budget is balanced with an increase of 2% on the water rates and 3% on sewer rates which would allow for operational improvements and a bond issuance to fund the Capital Improvement Plan for FY 2024-25.
The EMS budget will fund 1 new positions needed to change from 24 hour shifts to 12 hour shifts for the Battalion Chiefs, to run additional trucks during peak times, and to move the supply coordinator from part-time to full-time.
RECOMMENDATION
No action tonight, staff will return with a public hearing on August 20th and September 3rd with adoption ordinance readings on each of those dates with final adoption on September 3rd.