Agenda No. 10.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | August 20, 2024 |
| Department: | Finance |
| Subject: | Ordinance 24-T-150 - Conduct a Public Hearing and Adopt a budget for the fiscal year beginning October 1, 2024, and ending September 30, 2025, in accordance with the Charter of the City of Schertz, Texas; providing for the filing of the Budget; providing that this Ordinance shall be cumulative of all Ordinances; providing a Severability Clause; and providing an Effective Date. First Reading (S.Gonzalez/J.Walters) |
BACKGROUND
In accordance with applicable statutes and the City Charter, the City Manager submitted a budget proposal to the City Council for consideration on August 6, 2024. The City Council will hold public hearings for the Proposed Budget on August 20, 2024 and, September 3, 2024.
Note: After the August 6, 2024 Council Meeting, staff prepared some alternative options for the adopted budget that will be mentioned in the presentation.
The Budget Priorities for FY 2024-25 are as follows:
Goal 1: Staff Compensation
Goal 2: Infrastructure (Roadways)
Goal 3: Consolidated CIP Document
Goal 4: Increase Staffing Levels
Goal 5: New/Remodeled Facilities
Staff proposes to raise salaries for all departments by 4.4% across the board for inflation. This number is based on the last quarterly report 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 latest quarterly report showed wages for state and local governments grow by 5.1% and is the basis for the adjustment recommendation. Due to budget restrictions, staff proposes an adjustment of 4.4% this year. This ECI adjustment is proposed to take effect in October 2024 with the new budget.
Staff proposes to fund an increase and expansion in the Incentive Pay program and fund the Merit/Step program. The Merit/Step moves employees within their pay grade and was paused in FY 2023-24 to implement the recommendation of the Classification & Compensation Study.
The City also saw a decrease in health insurance costs of 11% for FY 2024-25.
In FY 2024-25, the city will have 20 General Fund Infrastructure projects underway with an estimated $30,298,422 to be expended for Streets, Parks, and Facilities using existing reserves and bond funds. The Water & Sewer will have 18 projects for a total of $45,326,380 estimated expenditures, and Drainage will have 1 project for $1,000,000. More detail about these projects can be found attached on the CIP document.
In the General Fund, no other new programs or funding is proposed other than those to meet rising costs and state and federal mandates.
The Water & Sewer Fund proposes to add a service crew consisting of 5 Service Worker positions, a Meter Technician, and reclassifying the Customer Service Representative to an Administrative Assistant. New capital purchases include 3 new trucks, a backhoe, and a mini-dump truck.
The Emergency Medical Services Fund proposes to add 2 Emergency Medical Technicians (EMTs) to field additional ambulance hours to meet service call volumes and 1 Battalion Chief to change all employees in this position from 24 hour to 12 hour shifts. Staff also proposes to make the Supply Coordinator a Full-Time positions instead of Part-Time. These items will be done mid-year.
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.
Note: After the August 6, 2024 Council Meeting, staff prepared some alternative options for the adopted budget that will be mentioned in the presentation.
The Budget Priorities for FY 2024-25 are as follows:
Goal 1: Staff Compensation
Goal 2: Infrastructure (Roadways)
Goal 3: Consolidated CIP Document
Goal 4: Increase Staffing Levels
Goal 5: New/Remodeled Facilities
Staff proposes to raise salaries for all departments by 4.4% across the board for inflation. This number is based on the last quarterly report 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 latest quarterly report showed wages for state and local governments grow by 5.1% and is the basis for the adjustment recommendation. Due to budget restrictions, staff proposes an adjustment of 4.4% this year. This ECI adjustment is proposed to take effect in October 2024 with the new budget.
Staff proposes to fund an increase and expansion in the Incentive Pay program and fund the Merit/Step program. The Merit/Step moves employees within their pay grade and was paused in FY 2023-24 to implement the recommendation of the Classification & Compensation Study.
The City also saw a decrease in health insurance costs of 11% for FY 2024-25.
In FY 2024-25, the city will have 20 General Fund Infrastructure projects underway with an estimated $30,298,422 to be expended for Streets, Parks, and Facilities using existing reserves and bond funds. The Water & Sewer will have 18 projects for a total of $45,326,380 estimated expenditures, and Drainage will have 1 project for $1,000,000. More detail about these projects can be found attached on the CIP document.
In the General Fund, no other new programs or funding is proposed other than those to meet rising costs and state and federal mandates.
The Water & Sewer Fund proposes to add a service crew consisting of 5 Service Worker positions, a Meter Technician, and reclassifying the Customer Service Representative to an Administrative Assistant. New capital purchases include 3 new trucks, a backhoe, and a mini-dump truck.
The Emergency Medical Services Fund proposes to add 2 Emergency Medical Technicians (EMTs) to field additional ambulance hours to meet service call volumes and 1 Battalion Chief to change all employees in this position from 24 hour to 12 hour shifts. Staff also proposes to make the Supply Coordinator a Full-Time positions instead of Part-Time. These items will be done mid-year.
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.
GOAL
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.
COMMUNITY BENEFIT
This budget will provide for additional resources to areas identified by citizens, city council, and staff.
SUMMARY OF RECOMMENDED ACTION
Staff recommends that the City Council approve the first reading of Ordinance No. 24-T-150, adopting the budget for the fiscal year beginning October 1, 2024, and ending September 30, 2025.
FISCAL IMPACT
| Fund | Proposed Budget | Fund Balance Change |
| General Fund | $50,569,229 | ($2,541,901) |
| Tax I&S Fund | 10,193,020 | (482,100) |
| Water & Sewer Fund | 35,011,333 | (2,150,918) |
| Capital Recovery - Water | 19,000 | 1,207,400 |
| Capital Recovery - Sewer | 33,000 | 768,000 |
| Drainage Fund | 1,635,862 | (69,579) |
| EMS Fund | 15,371,822 | (780,612) |
| SEDC | 4,119,740 | 4,223,260 |
| Special Events Fund | 55,000 | 0 |
| PEG Fund | 64,000 | 0 |
| Hotel Occupancy Fund | 130,322 | 1,096,178 |
| Park Fund | 100,000 | 54,750 |
| Tree Mitigation | 85,000 | 64,250 |
| Roadway Impact Fee Area1 | 5,000 | 350,300 |
| Roadway Impact Fee Area2 | 105,000 | 122,650 |
| Roadway Impact Fee Area3 | 5,000 | 420,250 |
| Roadway Impact Fee Area4 | 3,000 | 315 |
| Library Fund | 21,500 | 0 |
| Historical Committee | 14,250 | 14,250 |
| Total: | $117,541,078 | $2,761,977 |
RECOMMENDATION
Staff recommends that the City Council approve the first reading of Ordinance No. 24-T-150, adopting the budget for the fiscal year beginning October 1, 2024 and ending September 30, 2025.
Attachments
- Ordinance 24-T-150 with Attached Proposed FY 2024-25 Budget
- Proposed FY 2024-25 CIP
- Presentation on Budget & Tax Rate