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Min CC 06/17/2025 Budget Workshop #1CITY COUNCIL BUDGET WORKSHOP #1 Cibolo City Hall 200 S. Main St. Cibolo, Texas 78108 June 17, 2025 6:30 p.m. MINUTES 1. Call to Order — The meeting was called to order by the Mayor Pro -Tem R. Roberts at 6:32 p.m. 2. Roll Call and Excused Absences — Members Present: Mayor Pro -Tem R. Roberts, Councilman McGlothin, Councilman Mahoney, Councilwoman Cunningham, Councilwoman Sanchez -Stephens, Councilwoman D. Roberts, and Councilman Hicks; Members Absent: Mayor Allen. Councilman McGlothin made the motion to excuse the absence of Mayor Allen. The motion was seconded by Councilman Mahoney. For: All; Against: None. The motion carried 7 to 0. 3. Discussion/Direction on the FY26 General Fund Budget A. Headwinds Mr. Reed gave an overview to council on the Budget Development Philosophy, Process, and Timeline. He also went over the City Charter and Property Tax Process and calculation. Mr. Reed stated that the top priority is to reach a balanced budget that is consistent the city's formalized budget, debt, and related financial policies, including evaluation of policies to respond to changing environment. Key Dates in the Budget Process to include the Workshops #1 June 17'", #2 July 17th, and #3 august 51. City Manager proposed budget will be presented August 121. Council feedback will be at August 26th Council meeting. The Final Budget will be presented and voted on September 9'h. Some of the Headwinds Mr. Reed noted were: Reduced growth in preliminary property tax values, Sales tax growth on target, but economy is in an uncertain period, Slowing of building permits, Last year of ARPA funding, Absorbing full year cost of public safety market increases, Market adjustments for all other positions not included in FY25, Increased healthcare costs, Challenge recruiting police officers, Increase in ILA's for 911 dispatch, Schertz EMS and Guadalupe Appraisal District facility, Chipping fee eliminated, Funding new positions remains difficult, and SAFER grant now only covers 75% of salary and benefits B. Review FY25 General Fund Budget (End of Year) Ms. Miranda went over the General Fund Revenues and the General Fund Expenses. She also went over mandatory increases in the General Fund for FY26 to include full year of PY COLA and market adjustments, Public Safety overtime, Interlocal Agreements, Health Care, Elimination of ARPA funds, Utilities, telecommunications, and other contract services, and Technology Replacements. Ms. Miranda went over the FY26 Base Budget (still under development). She was able to break that down by departments (Police, Fire, Administration & Public Works). Increases in each department and the reason for the increase and amount of increase was given to council. C. Review FY26 Preliminary Forecast to include Mandatory Increase — This is shown in item B above D. Fund Balance Policy Ms. Miranda went over the Fund Balance Policy and stated that Resolution 1622, adopted in September 2022, set the minimum fund balance threshold for the General Fund at 28% of recurring expenditures. This was a decrease from 35%. Funds made available by amending the policy were available for one-time costs. Ms. Miranda went over Fund Balance Reserves Best Practices. GFOA recommends, at a minimum, that general-purpose governments, regardless of size, maintain unrestricted budgetary fund balance in their general fund of no less than two months of regular general fund operating revenues or regular general fund operating expenditures. Ms. Miranda also went over Rethinking Reserves and Establishing a Range E. Allocation of Tax Revenue Under Prop C Ms. Miranda went over a couple slides showing how the increase in Police and Fire Department budgets from adopted budget to current budget include the transfer of the $900,160 allocated in the None -departmental budget amendments made by City Council F. Police, Fire, and Public Works Recruitment and Retention Update Police Department — The public safety market adjustments have made an impact on the police department's ability to retain experienced officers and attracted police cadets to fil police vacancies in FY25. Feedback from employees indicated that the #1 factor for retention and job satisfaction is training investments in their career development. The average experience of Cibolo Police Officers: 1-5 Years — 65%, 5-10 Years —16%, 10-15 Years —14%, and 15 Years — 2%. Council also heard about current staffing, reasons for departures, current service coverage, dispatch, overtime, and SRO Program. Fire Department — The Fire Department is competing with surrounding fire departments and other metro areas for the same top talent. Pay Grade and Salaries for Fire Station Personnel were discussed. Of the 37 Shift Personnel in FY25: 2 years or less 29%, 2 to 5 years — 32%, 5 to 10 years — 18% and 10 years or more — 21 %. Total positions in the Fire Department from 2018 to current was given to the City Council. Council also received a report on the departures and reason for departures over the past six years in the Fire Department. Staffing positions and what each position does in the department was briefed to the council. Overtime was briefed along with current staffing. Public Works Department — Retention has improved with the market adjustment. Staffing needs remain due to expanded responsibilities. Crews are now better equipped to handle extreme weather because of updated equipment. Service areas have grown since 2020. Streets had 312 miles now it is above 378, Drainage in 2020 was approximately 360 now they maintain 612 acres, and Parks in 2020 211 acres and has grown to 240 acres today. The average experience in each of the public works was discussed along with salaries in each area. G. Status of Market Study for Remainder of Employees In preparation for FY26, a market study is being conducted for 51 positions. The following Cities are being surveyed as part of that study: New Braunfels, Schertz, Boeme, Seguin, and Live Oak. Job descriptions are also being reviewed to ensure our positions are classified correctly. 4. Discussion/Direction on the 5 -Year Capital Improvement Plan Debt capacity in FY26 is projected to be $4.5M. 3.4 is for the FMI 103 participation contribution to TxDOT. Another 750K would be for park improvements, 250K for street conditions survey, and 100K for public works fleet. This item will be discussed in more detail at a later Budget Workshop 5. ARPA Proi ect Fund Update Ms. Miranda went over the ARPA Funds and Projects. All funds must be spent by December 31, 2026. As of right now 89.7% has been spent and 10.3% is encumbered on projects. Ms. Miranda also went over the ARPA projects completed and the ARPA projects in process. 6. Adiourmuent Councilwoman Cunningham made the motion to adjourn the meeting at 10:03 p.m. The motion was seconded by Councilwoman D. Roberts. For: All; Against: None. The motion carried 7 to 0. PASSED AND APPROVED THIS 8TH DAY OF JULY, 2025. Mark Allen Mayor ATTEST Peggy Cimics, TRMC City Secretary