PRESENTER: Presenter
Jared Werner, Assistant City Manager
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SUBJECT: Title
Approval of a contract between the City of New Braunfels and the Humane Society of the New Braunfels Area for FY 2027.
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DEPARTMENT: Finance
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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 few 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, 2026 - September 30, 2027) with a 13% increase in funding (excluding payment for dispatch services).
As discussed during the July 20, 2026, City Council presentation, once Comal County finalizes its contract amount for the upcoming fiscal year, City staff will return to Council with an update on the combined year-over-year increase in contract revenue provided by the City and County, as well as an estimate of the recurring operating expenditures that the combined contract revenue is expected to support.
The fiscal impact of this change is approximately $74,000 annually and has been incorporated into the FY 2027 Proposed Budget.
ISSUE:
Establishing contract services with HSNBA for FY 2027.
STRATEGIC PLAN REFERENCE:
N/A Economic Mobility N/A Enhanced Connectivity N/A Community Identity
N/A Organizational Excellence YES Community Well-Being
FISCAL IMPACT:
As mentioned earlier, the fiscal impact from the amendments to the FY 2027 contract have been incorporated into the FY 2027 Proposed Budget.
Recommendation
RECOMMENDATION:
Staff recommend approval of this item.