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AMENDED
MEETING AGENDA
City Council
REGULAR SESSION CITY COUNCIL
August 5, 2025
6:00 P.M.

HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS
1400 SCHERTZ PARKWAY BUILDING #4
SCHERTZ, TEXAS 78154

CITY OF SCHERTZ CORE VALUES
Do the right thing
Do the best you can
Treat others the way you want to be treated
Work cooperatively as a team

AGENDA
TUESDAY, AUGUST 5, 2025 at 6:00 p.m.

Call to Order

Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas. (Councilmember Guerrero)

Discussion and Action Items

Appointment of Mayor Pro Tem - Discussion, consideration, and/or action regarding the confirmation, appointment, or election of the Mayor Pro Tem. (Mayor/Council)

Oath of Office

Employee Recognition

Neighborhood Services: Justin Langford-Code Enforcement Officer
Public Works Utilities: Robert Linares-Water/Wastewater Worker 1; Anthony Luna-Water/Wastewater Worker 1

City Events and Announcements

Announcements of upcoming City Events (B. James/S. Gonzalez)
Announcements and recognitions by the City Manager (S. Williams)
Announcements and recognitions by the Mayor (R. Gutierrez)

Hearing of Residents

This time is set aside for any person who wishes to address the City Council. Each person should fill out the speaker's register prior to the meeting. Presentations should be limited to no more than 3 minutes.

All remarks shall be addressed to the Council as a body, and not to any individual member thereof. Any person making personal, impertinent, or slanderous remarks while addressing the Council may be requested to leave the meeting.

All handouts and/or USB devices must be submitted to the City Secretary no later than noon on the Monday preceding the meeting. Handouts will be provided to each Councilmember prior to the start of the meeting by the City Secretary. All USB devices will be vetted by City IT staff to ensure City property is protected from malware.

Discussion by the Council of any item not on the agenda shall be limited to statements of specific factual information given in response to any inquiry, a recitation of existing policy in response to an inquiry, and/or a proposal to place the item on a future agenda. The presiding officer, during the Hearing of Residents portion of the agenda, will call on those persons who have signed up to speak in the order they have registered.

Consent Agenda Items

The Consent Agenda is considered self-explanatory and will be enacted by the Council with one motion. There will be no separate discussion of these items unless they are removed from the Consent Agenda upon the request of the Mayor or a Councilmember.

Minutes – Approval of the minutes from the City Council Workshop Meeting and City Council Regular Meeting on July 15, 2025 (S.Edmondson/S.Courney)

Councilmember Absence - Approve Councilmember Davis' absence on July 15, 2025, in accordance with City Council Rules of Conduct and Procedure, Article 2.2.2.B.

Appointments, Reappointments, and Resignations - City of Schertz Boards, Commissions, and Committees

Appointments

Schertz Economic Development Corporation-Steven "Matt" Clingo

Resolution 25-R-096 - Authorizing a Task Order Agreement with Kimley-Horn and Associates, Inc., for Professional Services related to the 2025 Master Thoroughfare Plan and Roadway Impact Fee Update. (B.James/K.Woodlee)

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

Resolution 25-R-098 - Approving the Schertz/Seguin Local Government Corporation (SSLGC) Fiscal Year 2025-26 Water Rates and other matters in connection therewith. (B.James/L.Busch)

Resolution 25-R-099 - Approving the Amendment of the Cost Allocation Agreement between the Schertz/Seguin Local Government Corporation (SSLGC), the City of Seguin and the City of Schertz. (B.James/L.Busch)

Resolution 25-R-094 - Authorizing an amendment to the Interlocal Agreement with the City of Cibolo for Dispatch Services. (S.Williams/J.Lowery/D.Roman)

10.

Resolution 25-R-086 - Authorizing increasing the not-to-exceed expenditures with Advanced Water Well Technologies. (B.James/L.Busch/N.Ferris)

Discussion and Action Items

11.

Resolution 25-R-102 - Resolution accepting the state defined tax rates and setting the preliminary 2025 tax rate. (S.Gonzalez/J.Walters)

12.

Resolution 25-R-101 – Ordering the November 4, 2025, City of Schertz Special Election with Bexar County and making provision for the conduct of the election;
authorizing contracts with the Election Administrator of Bexar County to conduct this Special Election and setting the 1st Public Hearing date for September 2, 2025 and the
2nd Public Hearing date for September 16, 2025. (Mayor/S.Edmondson)

Public Hearings

13.

Ordinance 25-S-030- Conduct a public hearing and consider a request to rezone approximately 4.64 acres of land from General Business District (GB) to General Business District-2 (GB-2), more specifically known as Guadalupe County Property Identification Numbers 199114 and 199115, also known as 36 Maske Road and 40 Maske Road, Lots 1 and 2, Block 1 of the Maske Road Business Park Subdivision, City of Schertz, Guadalupe County, Texas. (B.James/L.Wood/W.Willingham)

Workshop

14.

August 2025 Quarterly Streets Update

Information available in City Council Packets - NO DISCUSSION TO OCCUR

15.

Monthly Update - Major Projects in Progress/CIP (B.James/K.Woodlee)

16.

Update on the Schertz Home Energy Efficiency Program (SHEEP) and relaunch. (B.James/ L.Wood/ L.Locken).

Requests and Announcements

Requests by Mayor and Councilmembers for updates or information from Staff
Requests by Mayor and Councilmembers that items or presentations be placed on a future City Council agenda
City and Community Events attended and to be attended (Council)

Adjournment

CERTIFICATION

I, SHEILA EDMONDSON, CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS, DO HEREBY CERTIFY THAT THE ABOVE AGENDA WAS PREPARED AND POSTED ON THE OFFICIAL BULLETIN BOARDS ON THIS THE 1ST DAY OF AUGUST 2025 AT 5:15 P.M., WHICH IS A PLACE READILY ACCESSIBLE TO THE PUBLIC AT ALL TIMES AND THAT SAID NOTICE WAS POSTED IN ACCORDANCE WITH CHAPTER 551, TEXAS GOVERNMENT CODE.

SHEILA EDMONDSON

I CERTIFY THAT THE ATTACHED NOTICE AND AGENDA OF ITEMS TO BE CONSIDERED BY THE CITY COUNCIL WAS REMOVED BY ME FROM THE OFFICIAL BULLETIN BOARD ON ________DAY OF ___________________, 2025.
TITLE: _______________________________

This facility is accessible in accordance with the Americans with Disabilities Act. Handicapped parking spaces are available. If you require special assistance or have a request for sign interpretative services or other services, please call 210-619-1030.

The City Council for the City of Schertz reserves the right to adjourn into closed session at any time during the course of this meeting to discuss any of the matters listed above, as authorized by the Texas Open Meetings Act.

Closed Sessions Authorized: This agenda has been reviewed and approved by the City's legal counsel and the presence of any subject in any Closed Session portion of the agenda constitutes a written interpretation of Texas Government Code Chapter 551 by legal counsel for the governmental body and constitutes an opinion by the attorney that the items discussed therein may be legally discussed in the closed portion of the meeting considering available opinions of a court of record and opinions of the Texas Attorney General known to the attorney. This provision has been added to this agenda with the intent to meet all elements necessary to satisfy Texas Government Code Chapter 551.144(c) and the meeting is conducted by all participants in reliance on this opinion.

COUNCIL COMMITTEE AND LIAISON ASSIGNMENTS

Mayor Gutierrez
Member
Audit Committee
Investment Advisory Committee
Main Street Committee
TIRZ II Board

Liaison
Board of Adjustments
Senior Center Advisory Board-Alternate

Councilmember Davis– Place 1
Member
Interview Committee
Main Street Committee - Chair
TIRZ II Board

Liaison
Parks & Recreation Advisory Board
Schertz Housing Authority Board
Transportation Safety Advisory Board

Councilmember Watson – Place 2
Member
Audit Committee

Liaison
Library Advisory Board
Senior Center Advisory Board
Cibolo Valley Local Government Corporation-Ex-Officio

Councilmember Macaluso – Place 3
Member
Interview Committee
Hal Baldwin Scholarship Committee
TIRZ II Board

Councilmember Guerrero – Place 4
Member
Hal Baldwin Scholarship Committee
Investment Advisory Committee

Liaison
Schertz Historical Preservation Committee

Councilmember Westbrook – Place 5
Liaison
Schertz-Seguin Local Government Corporation (SSLGC)
Planning and Zoning Commission
Schertz Historical Preservation Committee
Cibolo Valley Local Government Corporation (CVLGC)-Alternate

Councilmember Heyward – Place 6
Member
Animal Services Advisory Committee
Audit Committee
Interview Committee-Chair
Investment Advisory Committee
Main Street Committee

Liaison
Building and Standards Commission
Economic Development Corporation - Alternate
Senior Center Advisory Board

Councilmember Brown – Place 7
Member
Main Street Committee
Schertz-Seguin Local Government Corporation (SSLGC)

Liaison
Economic Development Corporation

Agenda No. 1.

CITY COUNCIL MEMORANDUM

City Council Meeting:

08/05/2025

Department:

City Secretary

Subject:

Appointment of Mayor Pro Tem - Discussion, consideration, and/or action regarding the confirmation, appointment, or election of the Mayor Pro Tem. (Mayor/Council)

Oath of Office

BACKGROUND

On August 28, 2018, City Council amended their Rules of Conduct and Procedure (Ordinance 18-M-30) regarding the appointment of the Mayor Pro Tem.

Below is the amended article: Article 5 Section 5.1 Appointment Procedure for the Mayor Pro Tem.

a. The Council will discuss, and with a majority vote, appoint the Councilmember to serve as the Mayor Pro Tem for the City.

b. The appointed Mayor Pro Tem must be a Councilmember and must meet the qualifications of Section 4.02 of the City Charter. In addition, to be appointed to the position of Mayor Pro Tem, a Councilmember must be an elected member of Council and a member in good standing.

c. Term dates for the Mayor Pro Tem position will begin in February and August of each year (the election dates offset by three (3) months. Terms will sequentially rotate according to Councilmember's place.

d. If the Councilmember that is up for appointment as Mayor Pro Tem is vacant or is held by a Councilmember who is not qualified or chooses not to serve as Mayor Pro Tem, the Mayor Pro Tem appointment will go to the next qualified Councilmember.

e. The position will have a term of office of six (6) months.

f. The appointed Mayor Pro Tem may be removed by Council by a two-thirds (2/3) majority vote of the members of Council at any time during his or her term.

g. Council reserves the right to alter this procedure at any time by resolution or rule.

Qualifications.

The Mayor and each Councilmember must have attained the age of eighteen or older on the first day of the term of office applied for, be a registered voter of the City of Schertz, and have been a resident of the City for at least twelve consecutive months immediately preceding the deadline for filing for an application for a place on the ballot.

Section 4.05 Mayor and Mayor Pro Tem.

The Mayor shall be the official head of the City government. He or she shall be the chair and shall preside at all meetings of the City Council. The Mayor may vote only in the event of a tie. He or she shall, unless another signatory is otherwise designated by the City Council, sign all official documents such as ordinances, resolutions, conveyances, grant agreements, official plats, contracts, and bonds. He or she shall appoint special committees as instructed by the City Council, with committee membership to be composed of nominees by the City Council. He or she shall perform such other duties consistent with this Charter or as may be imposed upon him or her by the City Council. The Mayor shall not have veto powers.

The Mayor Pro Tem shall be a Councilmember appointed by the City Council for a term and pursuant to procedures established by the City Council from time to time. The Mayor Pro Tem shall act as Mayor during the absence or disability of the Mayor and in this capacity shall have the rights conferred upon the Mayor. While acting as Mayor, the Mayor Pro Tem may vote on any matter before the City Council.

RECOMMENDATION: Council will discuss and consider the appointment of the next Mayor Pro Tem regarding the above qualifications. Next in line to serve is Councilmember Tim Brown. If appointed, Councilmember Tim Brown will be sworn in as the new Mayor Pro Tem on August 5, 2025.

Agenda No. 2.

CITY COUNCIL MEMORANDUM

City Council Meeting:

08/05/2025

Department:

City Secretary

Subject:

Minutes – Approval of the minutes from the City Council Workshop Meeting and City Council Regular Meeting on July 15, 2025 (S.Edmondson/S.Courney)

Attachments

07-15-2025 Draft Council Workshop minutes

07-15-2025 Draft Council Meeting minutes

Agenda No. 5.

CITY COUNCIL MEMORANDUM

City Council Meeting:

08/05/2025

Department:

Engineering

Subject:

BACKGROUND

In 2017, the City of Schertz adopted a Master Thoroughfare Plan and in 2018, established a Roadway Capital Recovery Fee (roadway impact fee) Program. In 2022, an amendment was made to the program to include areas annexed into the City Limits into service areas and to add roadway segments in those areas to the Roadway Capital Improvement Plan (CIP). During that update, neither Land Use Assumptions nor impact fee collection rates were updated.

Because of recent annexations and the 2025 update to the City's Comprehensive Land Use Plan, it is recommended that updates to the Master Thoroughfare Plan and Roadway Impact Fee Program be undertaken.

The updated Comprehensive Plan and recent and projected development patterns will be used to inform the update to the Master Thoroughfare Plan. Texas Local Government Code Chapter 395 governs the process to update the impact fee program and rates. The consultant will provide the required technical analysis to determine the maximum assessable roadway impact fee in each of the four service areas. That analysis will include preparation of updated land use assumptions and associated growth rate to be reviewed and recommended (either as presented or as modified) by the City's Capital Improvement Advisory Committee (CIAC), an update to the roadway CIP (including updated planning level cost projections), and calculation of maximum assessable fees.

Kimley-Horn and Associates, Inc., (Kimley-Horn) is one of the City's on-call engineering firms and is qualified to perform this work.

GOAL

The goal of Resolution 25-R-096 is to authorize the execution of a task order agreement for Kimley-Horn to provide professional services for the City's update to its Master Thoroughfare Plan and Roadway Impact Fee Program and Rates.

COMMUNITY BENEFIT

Proper planning is needed to guide the continued, orderly development of the City's thoroughfare infrastructure. Reasonable and fair assessment of impact fees generates revenue to be used for expansion and improvement of that infrastructure to serve the growing community. The completion of this task order directly supports the City's strategic goal of Infrastructure Investment and the objective of development of roadways and transportation infrastructure.

SUMMARY OF RECOMMENDED ACTION

Staff recommends approval of Resolution 25-R-096 authorizing the professional services task order agreement with Kimley-Horn for the 2025 Roadway Impact Fee and Master Thoroughfare Plan Update.

FISCAL IMPACT

A base amount of $149,460 and a not-to-exceed total of $170,000 is proposed for this professional services agreement. Funding will come from roadway capital recovery fund accounts and expenditures will be distributed equally among the four service area accounts.

RECOMMENDATION

Approve Resolution 25-R-096.

Attachments

Resolution 25-R-096 with attachments

Agenda No. 6.

CITY COUNCIL MEMORANDUM

City Council Meeting:

08/05/2025

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

Agenda No. 7.

CITY COUNCIL MEMORANDUM

City Council Meeting:

08/05/2025

Department:

Public Works

Subject:

Resolution 25-R-098 - Approving the Schertz/Seguin Local Government Corporation (SSLGC) Fiscal Year 2025-26 Water Rates and other matters in connection therewith. (B.James/L.Busch)

BACKGROUND

In order for the City's corporate partner, the Schertz/Seguin Local Government Corporation (SSLGC) to provide water at the lowest rate possible, SSLGC utilizes the services of Willdan Financial Services as a rate consultant to evaluate and advance its model annually. This helps to keep rate increases minimal and to keep SSLGC revenue appropriate for current and future operations.

For Fiscal Year 2025-26, the SSLGC Board is recommending and has approved with SSLGC Resolution SSLGC R25-21 to increase water rates. The water rate will increase to $1.720 per 1,000 gallons. This is an increase of $.045 per 1,000 gallons.The SSLGC Board approved the proposed rates on July 17, 2025.

GOAL

To approve the SSLGC FY 2025-26 Water Rates.

COMMUNITY BENEFIT

The City of Schertz is a member of the Schertz/Seguin Local Government Corporation. In part, it is through the SSLGC that the City provides water to its residents and businesses. Approval of the water rates will ensure that the residents and businesses of Schertz will continue to receive this vital service.

SUMMARY OF RECOMMENDED ACTION

Staff recommends approval of Resolution 25-R-098 adopting the SSLGC FY 2025-26 water rates.

FISCAL IMPACT

The estimated cost of water from the City of Schertz for FY 2025-26 is $3,362,782.

RECOMMENDATION

Approval of Resolution 25-R-098.

Attachments

Resolution 25-R-098 with attachments

Agenda No. 8.

CITY COUNCIL MEMORANDUM

City Council Meeting:

08/05/2025

Department:

Public Works

Subject:

BACKGROUND

SSLGC, City of Seguin, and City of Schertz are parties to a Tri-Lateral Agreement, entered into on August 30, 2016, for the purpose of jointly funding and allocating costs associated with the Guadalupe Water Treatment Plant and Wellfield. The substantial completion of the Guadalupe Water Treatment Plant was certified as April 8, 2025. It is necessary to establish the recognized date of production for the plant for the purpose of cost allocation in accordance with the Cost Allocation Agreement Relating to the Guadalupe Project, section 13. The SSLGC Board has approved a resolution (SSLGC R25-22) recognizing April 8, 2025, as the certified date of substantial completion and the official date of production start for the Guadalupe Water Treatment Plant for purposes of cost allocation under the Tri-Lateral Agreement between SSLGC, City of Seguin and City of Schertz.

GOAL

To approve the amendment of the Cost Allocation Agreement between the Schertz/Seguin Local Government Corporation, City of Seguin and City of Schertz.

COMMUNITY BENEFIT

SSLGC, City of Seguin and City of Schertz have an existing Tri-Lateral Agreement for the purpose of identifying the terms of funding and allocating costs associated with the Guadalupe Plant and Wellfield.

SUMMARY OF RECOMMENDED ACTION

Staff recommends approval of the Resolution approving the amendment of the Cost Allocation Agreement between SSLGC, City of Seguin and City of Schertz.

FISCAL IMPACT

No change in fiscal impact from previous agreement.

RECOMMENDATION

Staff recommends approval of Resolution 25-R-099.

Attachments

Resolution 25-R-099 with attachments

Agenda No. 9.

CITY COUNCIL MEMORANDUM

City Council Meeting:

08/05/2025

Department:

Police Department

Subject:

Resolution 25-R-094 - Authorizing an amendment to the Interlocal Agreement with the City of Cibolo for Dispatch Services. (S.Williams/J.Lowery/D.Roman)

BACKGROUND

This resolution seeks to authorize the Fifth Amendment to the existing Interlocal Agreement (ILA) with the City of Cibolo for dispatch services. The original ILA was executed in 2010 (Resolution 10-R-49) and has been amended in 2015 (15-R-54), 2016 (16-R-24), 2019 (19-R-90), and again in 2024 (24-R-106). This amendment will authorize the City Manager to implement the fee adjustments specified in the Interlocal Agreement for Dispatch Services, specifically in Article 1, Section F, for each subsequent renewal term. The fee collection is based on the average weighted salaries of current employees and the percentage of service calls dispatched during the previous calendar year. Any future modifications to the Interlocal Agreement, except those related to fee calculations or adjustments, will still require City Council approval.

GOAL

The goal of this resolution is to amend the existing ILA with the City of Cibolo for dispatch services based upon the weighted salaries of dispatch personnel and call-for-service distribution, and authorize the City Manager to implement the fee changes for dispatch services at each subsequent renewal term outlined in the Interlocal Agreement for Dispatch Services, Article 1. F. Payment for Dispatch Services.

COMMUNITY BENEFIT

The community benefits from the collection of fees related to the dispatch service costs for the City of Cibolo.

SUMMARY OF RECOMMENDED ACTION

Approve Resolution 25-R-094.

FISCAL IMPACT

Dispatch service fees are determined based on staffing requirements necessary to ensure that multiple incidents can be handled simultaneously, with one dedicated dispatcher assigned to each incident. Fees are calculated by multiplying the weighted salary and benefits for staffing by the call for service volume ratio between Schertz PD/FD/EMS and Cibolo PD/FD, as determined for the previous calendar year. Estimated value of the agreement for FY2025-26 is $493,000.00.

RECOMMENDATION

Approve Resolution 25-R-094.

Attachments

25-R-094 with attachments

Agenda No. 10.

CITY COUNCIL MEMORANDUM

City Council Meeting:

08/05/2025

Department:

Public Works

Subject:

Resolution 25-R-086 - Authorizing increasing the not-to-exceed expenditures with Advanced Water Well Technologies. (B.James/L.Busch/N.Ferris)

BACKGROUND

In April 2025, City Council approved resolution 25-R-046 for the rehabilitation of Nacogdoches Well Pump 1. In that resolution, Staff requested a not-to-exceed amount of $68,000 to cover unforeseen issues that may arise during the tear down and inspection process. Staff based the cost assumptions on the observable pump and well condition, current performance and the similar work performed recently on pump 2. Unfortunately, during the tear down and inspection process it was discovered that well pump 1 requires significant additional replacement of components, including all column piping, line shafts, bearings, bearing retainers and pump bowls.

The new contract (separate labor and materials as in the previous contract) received from Advanced Water Wells includes the increased cost for materials. No additional labor cost is anticipated by the contractor for the installation of these materials. The new estimated cost is just over $117,000.00 and staff is requesting contingency of almost $13,000.00 for any additional issues that might arise. Staff is requesting a new not-to-exceed amount of $130,000.00, an increase of $62,000.00 to cover the new contract and any additional incidentals during installation.

GOAL

To authorize the City Manager to execute a contract with Advanced Water Well Technologies for $117,070.75 and a not-to-exceed amount of $130,000.00 for this rehabilitation project.

COMMUNITY BENEFIT

Performing maintenance and rehabilitation on critical water infrastructure will guarantee the City will continue to receive the highest quality water.

SUMMARY OF RECOMMENDED ACTION

Approval of this resolution will allow the execution of the contract for this rehabilitation project at the Nacogdoches Water Facility.

FISCAL IMPACT

Funding of up to $130,000.00 for the project will come from the current fiscal year Water Maintenance Funds identified for this project.

RECOMMENDATION

Approval of Resolution 25-R-086.

Attachments

Resolution 25-R-086 with attachments

Agenda No. 11.

CITY COUNCIL MEMORANDUM

City Council Meeting:

08/05/2025

Department:

Finance

Subject:

Resolution 25-R-102 - Resolution accepting the state defined tax rates and setting the preliminary 2025 tax rate. (S.Gonzalez/J.Walters)

BACKGROUND

Subsequent to the writing of this memo, staff will present an overview and options of the budget to Council at the August 1st Budget Retreat. At this August 5th City Council meeting, staff will present refined budgetary options based on the discussion from the retreat and request Council set the maximum tax rate. At the August 19th City Council meeting, action for a final adoption of the actual tax rate will occur, which can be no higher than the maximum tax rate set on August 5th.

On July 25, 2025 the City received the certified property tax rolls from the Guadalupe, Comal, and Bexar appraisal districts. The Guadalupe Tax Assessor-Collector used this information, and information provided by the City of Schertz, to calculate the No-new-revenue and Voter-approval tax rates for the 2025 Tax Year.

The No-new-revenue rate is a calculated rate that would provide the city with same amount of revenue it received the year before on properties taxed in both years. The Voter Approval Rate is a calculated maximum rate allowed by law without voter approval. If Council adopts a rate higher than the Voter Approval Rate, the tax rate will automatically be on the November 2025 ballot.

The 2025 No-new-revenue Rate is $0.5064 per $100 of valuation and the 2025 Voter-Approval Rate is $0.5350 per $100 of valuation. Staff is recommending setting a preliminary maximum property tax rate of $0.5350 per $100.

In accordance with Chapter 26.05(d) of the State's Property Tax Code, a governing body must hold a public hearing on the tax rate if the proposed tax rate exceeds the lower of the No-new-revenue or Unused Increment Tax Rate. In this case, the hearing is required as the proposed rate does exceed the No-new-revenue rate. Staff recommends holding the public hearing on August 19^thand encourages citizen participation and input in the adoption process.

A one-quarter page "Notice of Public Hearing on Tax Increase" must be published in the local newspaper and online in compliance with the Tax Code 26.06. The notice will contain information based upon a preliminary tax rate to be determined by the City Council and the dates of the public hearings.

During the final tax rate adoption process, Council can approve a lower rate at that time; however they will not be able to approve a higher rate without republishing the notices and holding additional public hearings.

The Public Hearing date is proposed for August 19th with final adoption at this meeting.

GOAL

To set a preliminary tax rate and start the budget adoption process.

COMMUNITY BENEFIT

Setting a maximum tax rate will provide for discussion on funding programs and projects that would best service residents. The maximum allowed rate is listed in this resolution to allow for discussion in the full range of tax possibilities but does not have to be adopted on August 19th, if selected tonight.

SUMMARY OF RECOMMENDED ACTION

Per the Texas Tax Code Chapter 26, City Council will need to accept the calculated tax rates and set a preliminary maximum tax rates to use in the public notices, which Council will do by resolution. This resolution is set to the highest possible rate that does not require an election for discussion purposes only. Council can change the rate in the resolution by motion to a lower rate. This rate should be set at the highest Council would be willing to consider in the tax rate and budget adoption process. The final adopted rate can be lower than the rate set tonight but it cannot be higher without reposting a notice and setting a new public hearing date.

FISCAL IMPACT

The proposed maximum rate maintains quality service to residents and businesses and provides growth in service offerings based on the classification and compensation study, staffing study and City priorities. The current property tax rate is $0.4900 per $100 valuation. The proposed maximum tax rate is $0.5350 per $100 valuation.

The M&O portion of the property tax rate will increase to $0.3669 from $0.3326 per $100 valuation.

The I&S portion will increase to $0.1681 from $0.1574 per $100 valuation.

The annual impact on the average taxable home value of $331,835 will be a $94.91 increase in the tax bill or an additional $7.91 in monthly escrow payments.

RECOMMENDATION

Staff recommends Council approve resolution 25-R-102, accepting the No-new-revenue and Voter-approval rates as submitted by the Guadalupe Tax Assessor Collector, setting a preliminary tax rate, and scheduling the public hearing.

Attachments

Resolution 25-R-102 Setting a Preliminary Tax Rate

2025 Tax Rate Calculation

Guadalupe 2025 Certification

Comal 2025 Certification

Bexar 2025 Certification

Agenda No. 12.

CITY COUNCIL MEMORANDUM

City Council Meeting:

08/05/2025

Department:

City Secretary

Subject:

BACKGROUND

• Texas Local Government Code Sec. 43.0117. AUTHORITY OF MUNICIPALITY TO ANNEX AREA NEAR MILITARY BASE
(a) In this section, "military base" means a presently functioning federally owned or operated military installation or facility.
(b) A municipality may annex for full or limited purposes, under the annexation provisions applicable to that municipality under this chapter, any part of the area located within five miles of the boundary of a military base in which an active training program is conducted. The annexation proposition shall be stated to allow the voters of the area to be annexed to choose between either annexation or providing the municipality with the authority to adopt and enforce an ordinance regulating the land use in the area in the manner recommended by the most recent joint land use study.

Because JBSA Randolph is a functioning military installation within an active training program, Schertz could utilize this provision for additional annexations within the ETJ that are within 5 miles of JBSA Randolph. 2 Background Continued: Texas LGC Sec. 43.0117

(c) A municipality may annex for full purpose under the annexation provisions applicable to that municipality under this chapter, any part of the area located within five miles of the boundary of a military base in which an active training program is conducted. The annexation proposition shall be stated to allow the voters of the area to be annexed to choose between either full-purpose annexation or providing the municipality with the authority to adopt and enforce an ordinance regulating the land use in the area in the manner recommended by the most recent joint land use study.

The election would include a proposition that would fully annex or an Ordinance regulating land use for the properties currently in the ETJ and within 5 miles of JBSA Randolph.
• Only registered voters in the area to be annexed would vote on this proposition, not everyone in the City.
• The option which receives the majority of votes will be the option that will apply to all properties in the subject area.

Attachments

Resolution 25-R-101 Order Special Election

Agenda No. 13.

CITY COUNCIL MEMORANDUM

City Council Meeting:

08/05/2025

Department:

Planning & Community Development

Subject:

BACKGROUND

Per the applicant's letter of intent, the applicant is proposing to rezone approximately 4.64 acres of land from General Business District (GB) to General Business District-2 (GB-2) to develop flex industrial buildings for office-warehouse use. The property is platted and is currently undeveloped. The site is located within the Accident Potential Zone II (APZ II) for JBSA Randolph Air Force Base.

On June 18, 2025, 10 public hearing notices were mailed to the surrounding properties within a 200-foot notification boundary of the subject property. At the time of the staff report, one (1) response in favor, zero (0) response neutral, and zero (0) responses in opposition have been received. A public hearing notice will be published prior to the City Council Meeting. Additionally, one (1) sign was placed on the subject property.

The Planning and Zoning Commission held a public hearing for the item on July 2, 2025

A public hearing notice was published on July 16, 2025 in the "San Antonio Express." Additionally one (1) notification sign was placed on the subject property.

Subject Property

Zoning

Land Use

Existing

General Business District (GB)

Undeveloped

Proposed

General Business District-2 (GB-2)

Office- Warehouse/Distribution Center

Adjacent Properties

Zoning

Land Use

North

Right of Way

Maske Road (Commercial Collector- A)

South

General Business District-2 (GB-2)

Office- Warehouse/Distribution Center

East

General Business Distrct-2 (GB-2)

Undeveloped

West

General Business District (GB)
Right of Way

Undeveloped
Fm 1518 (Secondary Arterial)

GOAL

Dimensional and Developmental Requirements

Code

Zoning District

Area Sq Ft

Width (ft)

Depth (ft)

Front (ft)

Side Adj Non-Residential (ft)

Rear Adj Non-Residential(ft)

Max. Height (ft)

Max. Impervious Coverage

Existing

(GB)

General Business

10,000

100

120

80%

Proposed

(GB-2)

General Business-2

10,000

100

120

80%

COMMUNITY BENEFIT

It is the City's desire to promote safe, orderly, efficient development and ensure compliance with the City's vision of future growth.

SUMMARY OF RECOMMENDED ACTION

1. Whether the proposed zoning change implements the policies of the adopted Comprehensive Land Plan, or any other applicable adopted plans.
The Comprehensive Land Plan is a guiding document for the long-range vision of Schertz and designates this area as "Industrial Hub." Industrial Hub is intended for developments such as manufacturing warehouses, processing, and distribution centers, and can buffer industrial areas to transition to other land uses by developing flex buildings or research and development. The applicant is requesting a zone change from General Business District (GB) to General Business District-2 (GB-2) to develop flex industrial buildings for office-warehouse use. Office-warehouse land use is consistent with the Industrial Hub designation and thus implements the policies established by the Comprehensive Land Plan.

2. Whether the proposed zoning change promotes the health, safety, and general welfare of the City.
As part of promoting health, safety, and general welfare, zone change requests should align with the Unified Development Code (UDC) and city policy. The subject property is located within the Air Installation Compatible Use Zone District (AICUZ). More specificially, this property is located within the Accident Potential Zone II (APZ II). These zones are established to provide control on encroachment around a military airfield per UDC Sec. 21.5.9.A, which requires that Randolph Air Force Base (RAFB) affirmatively recommend to the City that the proposed zone change be permitted. Based upon an evaluation of noise pollution and the high risk potential of aircraft accidents, RAFB has affirmatively recommended the zone change request from General Business District (GB) to General Business District-2 (GB-2). Therefore, the proposed zone change aligns with the UDC and city policy.

3. Whether the uses permitted by the proposed change will be consistent and appropriate with existing uses in the immediate area.
The subject property is currently undeveloped and is located directly adjacent to an area with numerous properties zoned as General Business District-2 (GB-2). General Business District-2 (GB-2) is intended to provide suitable areas for the development of non-residential and light industrial uses that serve the entire community. Therefore, given the current conditions of the surrounding area, a rezone to General Business District-2 (GB-2) does meet the intent of the UDC and is appropriate with the existing uses in the immediate area. The land uses permitted in General Business District-2 (GB-2) are listed in UDC Section 21.5.8 -Permitted Use Table.

Permitted Use Table (Sec. 21.5.8)*

Existing Zoning District

Proposed Zoning District

General Business District (GB)

General Business District-2 (GB-2)

Permitted Uses

Appliances, Furniture and Home Furnishing Store
Building Material and Hardware Sales
Car Wash, Automated
Commercial Amusement, Indoor

Appliances, Furniture and Home Furnishing Store
Building Material and Hardware Sales
Car Wash, Automated
Commercial Amusement, Indoor
Auto Repairs and Service, Major
Office Warehouse/Distribution Center
Mini-Warehouse/Public Storage (SUP)

*The permitted use table shown is a non-exhaustive list. For a complete list of permitted uses, see the UDC Section 21.5.8- Permitted Use Table.

4. Whether other factors are deemed relevant and important in the consideration of the amendment.
All UDC requirements have been met for the proposed zone change. City of Schertz Fire, EMS, and Police Departments have been notified of the zone change and have provided no objections to the request.

JBSA Randolph has been notified of the zone change request by the City of Schertz and, per the 2017 Air Installations Compatible Use Zones (AICUZ) Study, JBSA finds warehousing and storage services to be permitted within this area of the Accident Potential Zone (APZ) II with a maximum Floor-to-Area Ratio (FAR) of 2.0. Per their independent review, JBSA affirmatively recommends approval of the zone change request.

RECOMMENDATION

STAFF RECOMMENDATION
Due to the character of the surrounding area, the consistency with the Comprehensive Land Plan, and the affirmative recommendation of the proposed zone change from JBSA Randolph, staff recommends approval of Ordinance 25-S-030.

COMMISSION RECOMMENDATION
The Planning and Zoning Commission met on July 2, 2025, and made a recommendation to approve the proposed rezoning with a 6-0 vote.

Attachments

Ordinance 25-S-030 with attachments

Aerial Exhibit

Public Hearing Notice Map

Public Hearing Responses

Zoning Exhibit

City Council Presentation Slides

Agenda No. 14.

CITY COUNCIL MEMORANDUM

City Council Meeting:

08/05/2025

Department:

Engineering

Subject:

August 2025 Quarterly Streets Update

BACKGROUND

Engineering and Public Works will present a quarterly update on the status of various street projects. The update will include the current status of the SPAM projects and information on various street repairs and crack sealing efforts.

Attachments

Streets Presentation 8 5 25

Agenda No. 15.

CITY COUNCIL MEMORANDUM

City Council Meeting:

08/05/2025

Department:

Engineering

Subject:

Monthly Update - Major Projects in Progress/CIP (B.James/K.Woodlee)

Attachments

Monthly Update - Major Projects in Progress/CIP

Agenda No. 16.

CITY COUNCIL MEMORANDUM

City Council Meeting:

08/05/2025

Department:

Planning & Community Development

Subject:

Update on the Schertz Home Energy Efficiency Program (SHEEP) and relaunch. (B.James/ L.Wood/ L.Locken).

BACKGROUND

On February 20, 2024, City Council approved Resolution 24-R-12 which authorized City Manager to submit an Energy Efficiency and Conservation Block Grant (EECBG) application and accept grant funds from the Department of Energy (DOE) to improve energy efficiency for low to moderate-income single-family residents.

The EECBG is a flexible funding opportunity through the DOE that offers local governments funding to invest in a variety of clean energy and energy efficiency projects. In May 2024, the DOE awarded this grant to the City of Schertz in the amount of $76,400.

Once the grant was awarded, the program was developed by the Schertz Neighborhood Services team and branded Schertz Home Energy Efficiency Program (SHEEP). The SHEEP program will focus on assisting low-moderate income eligible residents with coordinating weatherization upgrades, replacing outdated inefficient appliances, repairing, sealing or replacing air ducts and installation of programmable thermostat thus reducing energy consumption, lowering energy bills and improving comfort and safety of homes.

The program was instituted in December 2024 with the launch of a website, outreach to residents in need and postcards mailed to certain areas of Schertz.

The City was notified by the DOE in a letter dated January 27, 2025, that recipients of grants must cease all activities and stop incurring associated costs. Upon receiving this notification, the SHEEP Program was suspended while staff waited for more information from the city's assigned DOE Grant Officer.

The city has been notified that the grant funding is now available. The SHEEP program was relaunched on July 21, 2025.

Attachments

Memorandum February 20, 2024

Resolution 24-R-12