PRESENTER: Presenter
Becky Wiatrek, Assistant Director of Finance
Body
SUBJECT: Title
Approval of a contract between the City of New Braunfels and the Humane Society of the New Braunfels Area for FY 2026.
Header
DEPARTMENT: Finance
Body
COUNCIL DISTRICTS IMPACTED: All
BACKGROUND INFORMATION:
Since 1980, the City of New Braunfels has partnered with the Humane Society of the New Braunfels Area, Inc. (HSNBA), a local not-for-profit, to jointly administer and operate various animal-related services for the community.
In 2023, HSNBA experienced significant financial hardship, including a period of insolvency. Over the past two years, the organization has made substantial progress toward long-term fiscal sustainability by establishing reserves and adopting a fund balance policy. To maintain a live release rate of 90% and continue providing efficient, high-quality animal care, HSNBA must reduce its reliance on grants and donations for operating costs-a long-standing practice that contributed to its prior financial instability. The most effective way to achieve this reduction is through increased contract revenue.
Transitioning away from dependence on one-time revenues for operations is a multi-year strategy. Consistent with prior years, staff recommends entering into another one-year agreement (October 1, 2025 - September 30, 2026) with a 20% increase in funding (excluding payment for dispatch services). After reviewing municipal-shelter funding models across Texas, staff proposes transitioning to a per capita fee structure rather than an animal intake-based model.
The fiscal impact of this change is approximately $96,000 annually and has been incorporated into the FY 2026 Proposed Budget.
ISSUE:
Establishing contract services with HSNBA for FY 2026.
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☒Community Well-Being ☐N/A
FISCAL IMPACT:
As mentioned earlier, the fiscal impact from the amendments to the FY 2026 contract have been incorporated into the FY 2026 Proposed Budget.
Recommendation
RECOMMENDATION:
Approval