Agenda No. 4.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | August 18, 2026 |
| Department: | Public Works |
| Subject: | Resolution 26-R-090 - Approving the SSLGC Fiscal Year 2026-2027 Annual Budget and other matters in connection therewith. (Director of Public Works Larry Busch) |
BACKGROUND
A proposed annual budget for the period commencing October 1, 2026 and ending September 30, 2027 has been prepared by the Schertz/Seguin Local Government Corporation (SSLGC) General Manager and Staff.
Overall, FY26 expenditures are projected to come in below budgeted appropriations, with Operating Fund expenditures estimated at $13,831,909. The budgeted FY27 expenditures prior to transfers have increased $992,792, or 8.2%. Significant increases in expenditure include: water lease payments for Guadalupe and Gonzales Counties (+13.7%, +8.7%), Gonzales Underground Water District fees (+100%), chemical consumption (+2.8%), electricity (+5.1%) and regular salaries (+14.5%). The FY27 Operating Fund also includes $130,000 for the purchase of an electric golf cart at the Gonzales Water Treatment Plant, a utility task vehicle for the transmission pipelines, and a trailer.
Operating Fund revenues for FY26 are projected to end the year at $13,696,635, which is an increase of $863,648, or 6.7%, compared to FY25. Revenues increased in FY26 due to increased volumes of contracted Tier 2 water sold to San Antonio Water System. Projected FY27 Operating Fund revenues prior to transfers represent an increase of $502,605, or 3.8%, compared to FY26.
It is the desire of SSLGC to have the FY2026-27 SSLGC Budget approved by the City of Schertz City Council. The SSLGC Board of Directors approved the FY 2026-27 Budget on July 16, 2026.
Overall, FY26 expenditures are projected to come in below budgeted appropriations, with Operating Fund expenditures estimated at $13,831,909. The budgeted FY27 expenditures prior to transfers have increased $992,792, or 8.2%. Significant increases in expenditure include: water lease payments for Guadalupe and Gonzales Counties (+13.7%, +8.7%), Gonzales Underground Water District fees (+100%), chemical consumption (+2.8%), electricity (+5.1%) and regular salaries (+14.5%). The FY27 Operating Fund also includes $130,000 for the purchase of an electric golf cart at the Gonzales Water Treatment Plant, a utility task vehicle for the transmission pipelines, and a trailer.
Operating Fund revenues for FY26 are projected to end the year at $13,696,635, which is an increase of $863,648, or 6.7%, compared to FY25. Revenues increased in FY26 due to increased volumes of contracted Tier 2 water sold to San Antonio Water System. Projected FY27 Operating Fund revenues prior to transfers represent an increase of $502,605, or 3.8%, compared to FY26.
It is the desire of SSLGC to have the FY2026-27 SSLGC Budget approved by the City of Schertz City Council. The SSLGC Board of Directors approved the FY 2026-27 Budget on July 16, 2026.
GOAL
To approve the SSLGC FY2026-27 Annual Budget.
COMMUNITY BENEFIT
The City of Schertz is a member of the Schertz/Seguin Local Government Corporation. It is through SSLGC that the City provides water to its citizens and businesses. Approval of the budget will ensure that the citizens and businesses of Schertz will continue to receive this vital resource and service.
SUMMARY OF RECOMMENDED ACTION
Staff recommends approval of the Resolution approving the proposed SSLGC FY2026-27 Annual Budget.
FISCAL IMPACT
This budget is based on SSLGC revenue.
RECOMMENDATION
Staff recommends approval.