PRESENTER: Presenter
Becky Wiatrek, Assistant Director of Finance
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SUBJECT: Title
Approval of a budget amendment for the following FY 2026 Special Revenue Funds: Cemetery Improvement Fund, Child Safety Fund, Facilities Maintenance Fund, Community Development Block Grant (CDBG), and Edwards Aquifer Habitat Conservation Plan (EAHCP) Fund
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DEPARTMENT: Finance
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COUNCIL DISTRICTS IMPACTED: N/A
BACKGROUND INFORMATION:
Special Revenue Funds account for revenues that are legally or administratively restricted for specific purposes, ensuring those funds are used only for the programs and activities for which they were intended. Because these revenues are dedicated to specific uses, fund balances may fluctuate throughout the year based on the timing of revenue collections and related expenditures and are not intended to accumulate unrestricted reserves.
The proposed budget amendments listed below are necessary to provide additional spending authority and, where applicable, recognize grant revenues received during Fiscal Year 2026. These amendments support operational needs, contractual obligations, facility repairs, and grant-funded projects that were either not anticipated or exceeded the appropriations included in the original FY 2026 budget. Approval of these amendments ensures the City maintains compliance with its budgetary requirements while allowing these restricted funds to be used for their intended purposes.
Cemetery Improvement Fund
The Cemetery Improvement fund is used to pay for maintenance and improvements at the City’s cemeteries.
An increase of $13,000 in operating expenditures is requested to provide sufficient spending authority for the Cemetery Improvement Fund. The amendment is primarily attributable to costs associated with the design of the Field of Graves project, which exceeded the original annual budget allocation. Approval of this amendment will allow the City to satisfy outstanding obligations through the remainder of the fiscal year.
Child Safety Fund
The Child Safety Fund, required by statute, is to be used to pay for safety programs for school-age children, including school crossing guards and other projects that enhance child safety, health, or nutrition.
An increase of $442,018 is requested, consisting of $318,778 in employee expenditures and $123,240 in operating expenditures.
The employee expenditure increase reflects School Resource Officer salary costs that exceeded the amount originally budgeted. These costs will be fully reimbursed by New Braunfels Independent School District (NBISD) in accordance with the existing interlocal agreement.
The operating expenditure increase is necessary because the FY 2025 Crossing Guard payment to NBISD was not invoiced prior to fiscal year-end. Additional budget authority is needed to process both the outstanding FY 2025 payment and the current fiscal year payment as required under the interlocal agreement.
Facilities Maintenance Fund
The Facilities Maintenance Fund is used to set aside funds for unexpected repairs on the City’s infrastructure. Funds are used to address major structural and system repairs in City buildings and parks.
An increase of $66,500 in operating expenditures is requested to address unanticipated facility maintenance needs, including plumbing repairs at the Police Department Headquarters and replacement of an air conditioning unit at the New Braunfels Public Library.
Community Development Block Grant (CDBG) Fund
The CDBG Fund is used to track expenditures of all Community Development Block Grants federal entitlement funds.
An increase of $150,000 in both revenues and operating expenditures is requested to account for previously unbudgeted Minor Home Repair Program projects funded through prior-year Community Development Block Grant allocations. These expenditures are fully reimbursable by the U.S. Department of Housing and Urban Development (HUD) and support critical health and safety improvements for income-qualified homeowners.
Edwards Aquifer Habitat Conservation Plan (EAHCP) Fund
The City of New Braunfels officially entered into the Edwards Aquifer Recovery Implementation Plan (EARIP) on October 24, 2011, and, at the same time, approved the Habitat Conservation Plan (HCP), the Funding Management Agreement (FMA) and the Implementing Agreement. In FY 2016, the City began the implementation of a watershed protection plan. The costs associated with the plan are reimbursed by TCEQ. The EAHCP/WPP Fund allows the City of New Braunfels to track all revenues and expenditures related to these two important programs.
An increase of $275,000 in both revenues and operating expenditures is requested to recognize grant funding received for the design of a biofiltration system. The grant award was not anticipated when the FY 2026 budget was adopted and requires corresponding budget authority to complete the project.
The Table below is intended to provide an illustration of where the funds are planning to come from to support the budget amendments described above. For the first three, there is sufficient reserves to support the amendments. For the CDBG and EAHCP Funds, there are offsetting amendments to revenue, meaning that there is no fiscal impact from the amendment.
ISSUE:
N/A
FISCAL IMPACT:
These amendments provide the necessary budget authority and allocation to address operational needs, contractual obligations, facility repairs, and grant-funded projects. Grant-funded expenditures will be offset by corresponding revenues where applicable.
Recommendation
RECOMMENDATION:
Staff recommends approval of the proposed FY 2026 budget amendments for the Cemetery Improvement Fund, Child Safety Fund, Facilities Maintenance Fund, Community Development Block Grant Fund, and Edwards Aquifer Habitat Conservation Plan Fund.