Schertz staff lays out pre‑budget priorities: pay, streets, CIP and a possible bond for public safety

City staff told the Schertz City Council during a March 28 pre‑budget retreat that the 2025 budget process will run from April through July with a proposed budget and CIP presented at an August 1 budget retreat and an adoption scheduled for Sept. 16, ahead of the Oct. 1 fiscal year start.

The presentation framed requests against the council’s strategic plan and five goals: sustainable government, safe and livable community, infrastructure investment, sense of community and a thriving economy. "We want to stay within our means and stay with, within what we can afford," presenter Steve said during the retreat, describing the staff objective to avoid a tax‑rate increase on the general‑fund side while scheduling rate increases for water and sewer where needed.

Why it matters: staff emphasized the budget is intended to align with the strategic plan and the consolidated 10‑year CIP so the city can prioritize and fund long‑term projects. The council will see departmental supplemental requests and a recommended 5‑year operating forecast; staff said many projects will compete for limited funding and timing depends on the appraisal roll and state actions that are not yet known.

Key details

- Compensation: Staff reported merit and step programs and an across‑the‑board inflationary adjustment were included in fiscal 2025 funding. "Keep pay off the table," Steve said, and officials said improved pay has lowered vacancy and turnover compared with earlier years. Staff also noted prior requests for certification pay and disaster pay were not included in the current draft and asked council whether to re‑introduce them.

- Streets and infrastructure: The city added $1 million from fund balance to the street preservation and maintenance program (SPaM) in fiscal 2025 plus the base $650,000 and purchased equipment including a pothole truck and a lay‑down machine. Staff highlighted dashboards for pothole and contract management and said street maintenance remains a top resident priority based on recent surveys.

- Consolidated CIP and impact fees: Staff said the city adopted a consolidated CIP and completed water, sewer and parks master plans. The council was told an upcoming water/sewer impact fee update is a key funding source for CIP projects and that a roadway impact fee update is planned to support general‑government CIP needs.

- South Side wastewater plant: Staff warned that the recently annexed South side — roughly 3,000 acres — will increase sewer demand and that the Cibolo Creek Municipal Authority (CCMA) South plant is at capacity. Preliminary capacity needs were cited at about 1,375,000 gallons per day for the city’s share, which staff estimated could cost "a little over $40,000,000" for Schertz’s portion of expansion.

- Facilities and a potential bond: Staff recommended planning for a bond election to fund large CIP items such as a new public safety facility; timing for a bond was described as possibly on the 2026 ballot with construction expected to take multiple years. The presentation said the new facility footprint would provide roughly 15,000 square feet of interim space capacity and could meet needs for about eight years while a permanent public safety building is developed.

Process, timing and constraints

Staff stressed that the budget package depends on five pieces of missing information, notably the appraisal district’s estimated tax roll (not available until May) and the outcome of state legislative actions affecting tax calculations. Staff said that where supplemental requests exceed available funds, items may be deferred or the council could choose to raise revenues (for example, via the tax rate) to cover additional priorities.

What officials asked for

Council members and staff discussed tradeoffs between keeping compensation competitive and funding on‑going service levels, how to prioritize CIP projects, and a funding strategy for facilities. Staff said the administration will return a full list of supplemental requests, proposed funding levels and a finalized timetable for council review at the August retreat.

Ending

Staff advised the council the draft budget will attempt to avoid a general‑fund tax‑rate increase while holding scheduled utility rate adjustments for water and sewer. The council will receive the budget package in August and consider adoption on Sept. 16; staff said they will provide the updated slides and details before the formal budget retreat.