City council approves budget with controversial tax increase

In a recent city council meeting, the Schertz City Council approved several key ordinances and resolutions, including the adoption of the budget for the fiscal year 2024-2025 and a property tax increase.

The council unanimously passed Ordinance 24 S 149, which allows for the development of 80 by 120 lots in a subdivision previously limited to half-acre lots due to septic requirements. This change follows a resolution with the City of Schertz and Green Valley.

During the meeting, Finance Director Miss Gonzales presented the final budget, highlighting five established priorities and updates since previous discussions. The proposed budget totals approximately $52.6 million, reflecting a 2.6% increase from the previous year. Notably, the budget includes a 3.5% increase in employee compensation and adjustments to health insurance premiums, resulting in an overall decrease in costs.

The council also approved a proposed property tax rate of 0.4900, which represents a 2% increase and is expected to raise an additional $32 for the average taxable home. This decision was met with mixed reactions; while some council members argued that the increase is necessary for city growth and services, others expressed concerns about the financial burden on residents already facing rising costs.

Council Member Watson voiced strong opposition to the tax increase, suggesting that anticipated revenue from new developments would suffice to meet budgetary needs without imposing additional taxes on residents. In contrast, Mayor Pro Tem Gibson defended the increase, emphasizing the importance of funding for city services and infrastructure.

The council ultimately ratified the property tax increase with a vote of 5-2, moving forward with the budget and tax rate for the upcoming fiscal year. The meeting concluded with discussions on personnel evaluations for the city manager and city secretary, which were held in closed session.