Drainage Fees	2008	2009	2013	2025
Charge Per, LUE*	$2.10	$3.80	$5.20	$5.20

*LUE is living unit equivalent or the average impervious surface created by one residential home. Each home is 1 LUE and is charged $5.20 monthly and each business is charged a fee based on the amount of impervious surface they have.

Impervious surface is any improvement that would prevent natural run-off or absorption of rainwater and is commonly considered to be parking lots, sidewalks, foundation, and other concrete walkways or structures.

Improvements to properties that include concrete or asphalt or other materials that prevent natural absorption of rainwater can increase the hazards of flood events by concentrating additional runoff in low-elevation regions and creeks. The amount of additional water that enters those low areas, regions and creeks due to impervious surface improvements can threaten life and property to the point that Schertz and other communities have a dedicated revenue source used to improve drainage channels to accept and safely transport runoff during rain events. Since the 1998 Flood, the population of Schertz has more than doubled and many residents may not be aware of the potential impact of such an event.

This item is to review a proposal to update the Drainage Fee from $5.20 per LUE to $8.00 per LUE to increase the amount of revenue dedicated to maintaining and expanding the drainage channels to help protect against flood damages and loss of life. This fee has been at the $5.20 level since 2013 or the past 12 years. During that time, we have seen inflationary factors reduce the amount of maintenance and new drainage improvements the City is able to accomplish and has had to offset this fee with contributions from the General Fund, using tax revenue instead. 

Staff engaged Willdan Financial Services to review residential and commercial account growth, drainage operating expenditure growth, and improvement projects in the Capital Improvements Plan to recommend a 5-year rate plan for drainage fees. Based on the results of the study, Willdan found the City would need a drainage rate of $15 by 2029 to meet all the operating and infrastructure goals in a 10-year window. This amount would put Schertz as one of the highest drainage fees in the State if Council made all the recommended adjustments in the 5-year time frame. 

Tonight, staff is only recommending the first adjustment to bring the fee to $8.00 per LUE and will work to reduce the fee recommendation to be lower than $15.00 as stated in 2029 after considering project timelines and impacts. This first increase will be to bolster annual operating maintenance of existing drainage channels by funding additional personnel, including a Floodplain Manager and a new Worker Crew, replace aging equipment and conduct an updated Master Drainage Plan. The plan will help prioritize those project impacts and timelines to help keep the recommended rate down while continuing to provide life and property safety to the community.

The adopted budget for FY 2025-26 did approve the additional staff and equipment that would be funded by the rate increase. If this change is not passed, staff will not make those hires or purchases to maintain a balanced financial position. 

The City was required to post 3 notices in the paper on this fee change. Those notices ran on the 9/10, 9/17, and 9/24 publication dates.

To review the Drainage Fee recommendation and funding for the Drainage Fund and associated projects.

The Drainage Funds directly supports public safety by reducing the hazards caused by flood events. Saving lives and property by properly planning and executing routine maintenance and expansion of drainage channels in Schertz.

Staff recommends approval of Ordinance 25-M-045.

This fee update would generate an estimated $750,000.00 in annual revenue for the Drainage Fund.

The annual impact on a single family home would be $33.60.

Commercial properties' fees would range based on the amount of impervious surface the business generated. As examples: a fast-food restaurant could see an increase of $154.56 annually and an 8.6-acre industrial site with a 140,000 sq. ft. building and parking might see an annual increase of $1,536.00.

These fee changes would be effective November 1, 2025.

Staff recommends approval of Ordinance 25-M-045 to update the Drainage Fee to $8.00 per LUE effective November 1, 2025.