Agenda - View Meetings (All) (1264721828)

Agenda No. 6.

CITY COUNCIL MEMORANDUM

City Council Meeting:

August 5, 2025

Department:

Public Works

Subject:

Resolution 25-R-097 - Approving the Schertz/Seguin Local Government Corporation (SSLGC) Annual Budget for Fiscal Year 2025-26. (B.James/L.Busch)

BACKGROUND

A proposed annual budget for the period commencing October 1, 2025 and ending September 30, 2026 has been prepared by the Schertz/Seguin Local Government Corporation (SSLGC) General Manager and Staff. This proposed budget shows an increase in total expenses of approximately 5% or $596,603.

Significant increases in expenditures include:
(1) Salaries and Benefits - Includes two new Operator positions, upgrade of a Service Worker to Maintenance Mechanic and an upgrade of four team leads (18%). $426,475
(2) Water Leases - Gonzales County (10.6%), this amount is due to projected increase in water lease payments for water rights held within Gonzales County. $254,600
(3) Water Leases - Guadalupe County (10.4%), this amount is due to an increase in the annual production cap approved by the Guadalupe County Groundwater Conservation District, which increases SSLGC water lease payments for water rights held within Guadalupe County. $77,700
(4) Chemicals - 7% increase due to substantial increases in the price of chemicals used in the water treatment process. $100,000

It is the desire of SSLGC to have the FY2024-25 SSLGC Budget approved by the City of Schertz City Council. The SSLGC Board of Directors approved the FY 2025-26 Budget on July 17, 2025.

GOAL

Approval of the SSLGC FY2025-2026 Annual Budget.

COMMUNITY BENEFIT

The City of Schertz is a member of the SSLGC. It is through the SSLGC that the City provides water to its citizens. Approval of the budget amendment will ensure that the citizens of Schertz will continue to receive this vital resource and service.

SUMMARY OF RECOMMENDED ACTION

Staff recommends approval of Resolution 25-R-097 authorizing the SSLGC FY2025-26 Annual Budget.

FISCAL IMPACT

This budget is based on SSLGC revenue.The City of Schertz's contributions will be projected in the FY 2025-26 Annual Budget.

RECOMMENDATION

Approval of Resolution 25-R-097.

Attachments

Resolution 25-R-097 with attachments