Agenda No. 9.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | October 13, 2026 |
| Department: | Finance |
| Subject: | Ordinance 26-M-032 - Amend the City of Schertz Code of Ordinances and certain other ordinances by amending and establishing fees for certain licenses, permits, and other services (Finance Director James Walters) |
BACKGROUND
City Departments collect a wide variety of fees for permits, services, fines and other charges that are all part of everyday operations of municipal government. Since September 2008, the fees have been incorporated into a single fee schedule. Ordinance 08-M-43 established the consolidated fee schedule and allows for the modification of existing fees to be done by resolution while new fees are established or added to the Fee Schedule by ordinance.
The Fee Schedule ordinance provides a single document with all City fees that directly affect the users. The changes to the fees ensure the continued operation of public utilities, provides for essential services to the community and to adequately maintain the investment in existing infrastructure. All changes to the fee schedule will have an effective date of November 1, 2026.
Drainage
The Drainage Fee is proposed to increase $3 from $8 per home equivalent to $11 each month. This increase is to support future drainage capital projects to enhance the community's drainage system and increase public safety. Projects supported include FM 78 South Channel Silt Removal, Wendy Swan Drainage Improvements, Kramer Farm Drainage Improvements, Woodbridge Drainage Improvements, Portage Lane Culvert Replacement and Channel Rehabilitation, Morning Drive Culvert Replacement and Channel Rehabilitation, and Oak Forest Channel Improvements. More detail can be found in the FY 2026-27 Capital Improvements Plan.
Per the Local Government Code Section 552.041 the Municipal Drainage Act, the drainage fee proposal and public hearing were advertised in the San Antonio Express News on September 2, September 16, and September 23 meeting the requirements for this agenda item.
Utility Billing
Staff is recommending an increase in the Fire Hydrant Meter rental program for both the deposit and the replacement fee. The refundable deposit is currently at $200.00 with staff's recommendation to increase it to $900.00. The deposit is generally used to cover balances left on the account once its closed. The current $200 deposit isn't sufficient to cover the majority of the monthly bills used by development. The $900 is also common regionally for this type of service.
The hydrant meter replacement fee is also proposed to be updated to match current meter costs. The current base meter cost is $1,183.63 while the replacement fee is $910.00. The new fee will cover the current meter replacement cost as well as anticipated price increases midyear. This fee is only charged when a rented Hydrant Meter is damaged in order to replace it.
Police
The changes to the Police Fee schedule are only descriptive changes to clarify the fee categories with no changes to the fee amounts. Alarm Permit Fees are changed to "Annual Alarm Permit Fees" to clarify this fee is only charged once per year. While the "Alarm Service Fees: Other than Burglar Alarms" and "Burglar Alarm Service Fees:" are changed to "Commercial False Alarm Fees" and "Residential False Alarm Fees", respectively.
The changes proposed in this amendment would go into effect November 1, 2026 or the next bill thereafter.
The Fee Schedule ordinance provides a single document with all City fees that directly affect the users. The changes to the fees ensure the continued operation of public utilities, provides for essential services to the community and to adequately maintain the investment in existing infrastructure. All changes to the fee schedule will have an effective date of November 1, 2026.
Drainage
The Drainage Fee is proposed to increase $3 from $8 per home equivalent to $11 each month. This increase is to support future drainage capital projects to enhance the community's drainage system and increase public safety. Projects supported include FM 78 South Channel Silt Removal, Wendy Swan Drainage Improvements, Kramer Farm Drainage Improvements, Woodbridge Drainage Improvements, Portage Lane Culvert Replacement and Channel Rehabilitation, Morning Drive Culvert Replacement and Channel Rehabilitation, and Oak Forest Channel Improvements. More detail can be found in the FY 2026-27 Capital Improvements Plan.
Per the Local Government Code Section 552.041 the Municipal Drainage Act, the drainage fee proposal and public hearing were advertised in the San Antonio Express News on September 2, September 16, and September 23 meeting the requirements for this agenda item.
Utility Billing
Staff is recommending an increase in the Fire Hydrant Meter rental program for both the deposit and the replacement fee. The refundable deposit is currently at $200.00 with staff's recommendation to increase it to $900.00. The deposit is generally used to cover balances left on the account once its closed. The current $200 deposit isn't sufficient to cover the majority of the monthly bills used by development. The $900 is also common regionally for this type of service.
The hydrant meter replacement fee is also proposed to be updated to match current meter costs. The current base meter cost is $1,183.63 while the replacement fee is $910.00. The new fee will cover the current meter replacement cost as well as anticipated price increases midyear. This fee is only charged when a rented Hydrant Meter is damaged in order to replace it.
Police
The changes to the Police Fee schedule are only descriptive changes to clarify the fee categories with no changes to the fee amounts. Alarm Permit Fees are changed to "Annual Alarm Permit Fees" to clarify this fee is only charged once per year. While the "Alarm Service Fees: Other than Burglar Alarms" and "Burglar Alarm Service Fees:" are changed to "Commercial False Alarm Fees" and "Residential False Alarm Fees", respectively.
The changes proposed in this amendment would go into effect November 1, 2026 or the next bill thereafter.
GOAL
To update the Adopted Fee Schedule for FY 2026-27.
COMMUNITY BENEFIT
Provide a single place for information on City fees.
SUMMARY OF RECOMMENDED ACTION
Staff recommends council approve the proposed changes to the fees schedule.
FISCAL IMPACT
The Drainage Fee increase would increase resident's utility bills by $3 per month and raise an estimated $800,000 and support debt payments for $8,375,000 of drainage projects.
The Utility Billing changes to the Hydrant Meter program are expected to meet costs of replacing meters as well as cover unpaid bills.
The Police Fee changes are description updates that don't affect the fee function or price and is to clarify the fee's purpose only.
The Utility Billing changes to the Hydrant Meter program are expected to meet costs of replacing meters as well as cover unpaid bills.
The Police Fee changes are description updates that don't affect the fee function or price and is to clarify the fee's purpose only.
RECOMMENDATION
Adopt Ordinance 26-M-032 and updated fees for FY 2026-27