Boerne presents five‑year capital improvement plan; water projects top 2026 list at $19.7 million

City staff presented the City of Boerne’s five‑year capital improvement plan (CIP) and the utilities component of the proposed budget during the July 22 council meeting, outlining project priorities, funding sources and upcoming rate actions.

Sarah Bacalu, who led the presentation, described the CIP as the city’s long‑term (five‑year) plan used to prioritize major capital investments and align with Boerne’s 10‑year rolling plan. "The first year of the CIP is actually this year's budget and the following subsequent years of the plan are used as a planning tool," Bacalu said.

Key utility highlights for fiscal 2026 included a combined $19.7 million list of water, sewer and reclaimed projects. Bacalu said staff expects to use about $15 million in impact fees for those projects, roughly $3.9 million from capital reserves and approximately $650,000 from developer contributions. The presentation also noted that the city’s 2025 water rate study recommends gradual increases; Bacalu said the scheduled increase for 2026 is 7 percent and would take effect Jan. 1 if adopted alongside the budget ordinances.

Bacalu said gas and electric utilities are also in active rate studies. The gas CIP was described as roughly $1.4 million for next year, funded from capital reserves. Regarding gas system operations, Terry Nolan, the city’s operations manager for utilities, told council staff expects the perimeter trailers used in past winters may not be needed this coming winter because recent improvements reduce that need, but staff is budgeting for them as a contingency.

On electric service, staff said the city entered a financial swap to mitigate a portion of variable congestion costs tied to demand, and that mitigation will remain through the expiration of the city’s BP contract. "We implemented a swap that helps mitigate that risk significantly so we shouldn't have those spikes," Bacalu said.

Stormwater projects highlighted an Adler Road culvert completion at just under $2.8 million; Bacalu said part of that work was funded with American Rescue Plan Act (ARPA) funds and included contributions from Kendall County. Governmental projects across the city were listed at about $34 million, with $24 million coming from capital reserves; staff noted $6.5 million of the 2022 bond issuance would be applied to two bond projects and a $750,000 Texas Parks and Wildlife grant is allocated to Northside Community Park work.

Bacalu reminded council that the proposed budget will be filed with the city secretary on Aug. 8 and that the council will continue review in subsequent budget workshops ahead of final adoption on Sept. 9. Several councilmembers asked technical and accessibility questions, including whether a planned Main Street stairs project would meet full current Americans with Disabilities Act standards; Director Jeff Carroll said the retrofit will install a ramp but will not meet today’s full slope standard because of site constraints, and staff is using PROWAG guidance for retrofits.

Staff did not seek a vote on the CIP at the July 22 meeting; council members were told the next budget workshop will cover governmental budget details, debt issuance plans and compliance items tied to truth‑in‑taxation laws.