Schertz advisory committee recommends council accept two semiannual capital-improvement reports; EPA grant cited for tank project

The Capital Improvement Advisory Committee recommended that City Council accept two semiannual reports on the city’s capital improvements program and capital recovery (impact) fees following a presentation and brief discussion at its June 4 meeting.

City Engineer Kathy presented projects and finances for the two reporting periods — the second half of fiscal 2024 (April 1–Sept. 30, 2024) and the first half of fiscal 2025 (Oct. 1, 2024–March 31, 2025). The largest single expense was work on the Corbett Ground Storage Tank project, for which Kathy said, “the expenses in the second half of FY24 were almost $3,000,000. In the first half of fiscal year 25 was about $2,200,000.” She told the committee the city received a $3,500,000 grant from the U.S. Environmental Protection Agency toward an approximately $8,000,000 project.

The reports covered water, wastewater and roadway projects funded by impact fees (capital recovery). For water, staff described the citywide master plan and the water/wastewater impact-fee update that council adopted in April, and noted a new state-law restriction under consideration that affects phased increases. On wastewater, Kathy reported continued work on the Woman Hollering/Creek wastewater project, saying the lift station is operational and “we have flow going to the CCMA South plant.” She added the project has uncovered a separate capacity issue: the city does not currently have enough allocation at the CCMA plant to serve all properties that would like to tie in, and staff are coordinating with neighboring agencies (Cibolo and Green Valley SUD) and with council.

Staff also summarized right-of-way and easement challenges on trunk-main projects. On a project to extend sewer lines toward the Seguin area, Kathy said easement acquisition has been slow and that staff is “considering a minor adjustment to the project to reroute the line to perhaps ease the situation with getting some of those easements.” She reported modest impact-fee expenditures while easements and design work are pending.

Finance Director James Walters prepared the fiscal backup for the reports and was listed as staff contact for questions. Committee members asked procedural questions about whether the two semiannual reports could be sent to council as a package; Kathy and staff said they could be forwarded together unless an issue arose with one of them.

Separately, staff reported on a recently passed measure in the Texas Legislature, identified during the meeting as “Senate Bill 18 83.” A staff member briefing the committee summarized the provision as follows: the bill “has a limitation that we may not increase the amount of an impact fee for 3 years from the later date of when the fee was adopted or most recently increased,” but also noted the bill language allows a political subdivision to implement a phased-in collection schedule that phases in up to the maximum adopted fee “for a period not to exceed 10 years.” The committee was told staff would return with a follow-up briefing if the governor signs the bill and would seek CIAC input on any recommendations to council about phasing or fee collection schedules.

The committee moved, seconded and approved a recommendation that City Council accept both semiannual reports as submitted by staff; the chair recorded an affirmative voice vote and the motion passed. No members of the public addressed the committee during the public-input portion of the hearing on these reports.

The committee’s discussion included requests that staff provide any required federal documentation for grant-funded work (for example, certified payroll reporting tied to the EPA grant) and that staff continue to coordinate with partner agencies where CCMA capacity limits affect tie-ins. Staff noted easement negotiations and right-of-way needs for future roadway expansions are ongoing and that costs and timing for relocation or right-of-way acquisition depend on whether utilities sit in current right-of-way or in separate easements and on then-current state law regarding relocation costs.

The committee adjourned and the reports will be considered by City Council at a future meeting.