Hey there! I just got back from the City Council Budget Workshop this Saturday morning, and I wanted to share what went down. If you're curious about how your tax dollars are shaping up for the next year, grab a coffee and read on—I took notes so you don't have to sit through the whole thing!
Setting the Scene I headed over to the Council Work Session Room at City Hall (215 E. McKinney St.) right at 8:30 AM. Since it was a work session, the vibe was all discussion and direction rather than formal votes. Council and staff were there to dig into the weeds of the FY 2026-27 budget, and we were in for a long one—the open session didn't wrap up until the Council adjourned to closed session around 1:48 PM.
Ethics Training First We kicked things off with Agenda Item A, a required training on the City's Ethics Ordinance. Madison Rosha, the City Auditor, walked everyone through Chapter 2, Article XI. It's good to keep these rules fresh in mind. She highlighted the six aspirational expectations for conduct, the mandates for disclosing business relationships, and the nine prohibitions. One detail that stood out: the gift limits are capped at $50 for a single gift and $200 annually. There was also a clarification that non-attorney representation isn't allowed in complaints due to a 2025 amendment. Council members signed their attendance verification forms to wrap it up.
The Big Budget Dive Then came the main event: Agenda Item B. Amy Catholic, Chief Strategic Officer, and Interim City Manager Cassey Ogden presented the proposed FY 2026-27 budget. It's a massive $2.2 billion package, and here are the highlights that caught my attention:
- Tax Rate & Revenue: The proposed total tax rate is 0.548485, which is about an 8% decrease! A huge driver here is a roughly $3 billion increase in certified assessed value, including about $1.3 billion from Business Personal Property (BPP). However, staff cautioned that BPP is volatile and depreciates quickly, so they're being careful with long-term modeling.
- Resident Impact: Council ran the numbers for the average resident. With utility rate adjustments and the property tax drop, the average annual savings comes out to about $105.20 (a tax decrease of ~$203 offset by a utility increase of ~$97.80). Council noted, though, that renters won't see the property tax benefit, so they'll only feel the utility cost changes.
- Staff & Benefits: The budget focuses on staff investment. General government employees are looking at a 2.5% merit increase plus a COLA ($1,000 for full-time, $500 for part-time). Fire is getting a 3% base pay adjustment. The city is also absorbing about a 5% increase in health insurance premiums to protect employees and retirees.
- No Managed Vacancies: The managed vacancy program is gone. They're budgeting at 98% FTE to reflect natural turnover.
Department & Utility Updates Staff walked through the departments and enterprise funds. A few things jumped out:
- Animal Services: The budget is seeing a significant jump to about $5.85 million. This is due to post-audit care standards, longer lengths of stay, expanded medical services, and costs for the volunteer/foster program.
- Fire & Police: Fire is budgeting for new Stations 5 & 6 and has a union target of market plus 5%. Police is dealing with a 46-week training pipeline and is budgeting for all vacancies to maintain hiring flexibility.
- Utilities: It was a mixed bag. Water is proposing a 3% increase and rolling out automated meters with leak alerts. Wastewater is proposing a 9% increase and looking into a riverwalk/reuse study. Drainage is proposing a 5% increase—the first hike since 2002!—to tackle things like the Pecan Creek Stormwater Master Plan. On the bright side, Solid Waste and the Airport funds are proposing no rate increases.
- Bond Extension: Staff proposed extending the 2023 bond program by four years. Without this, the debt rate would spike by 2–3 cents soon. The extension smooths it out, holding the rate steady at about 23.5 cents through 2030. Council approved this direction for flexibility.
Council Priorities & Economic Development Since there are no votes in a work session, Council provided direction on priorities. They had about $796,000 available for council priorities and decided to fund two EMS Lieutenant positions.
There was a lively discussion on allocating a $1 million placeholder for Economic Development: * Council approved a Workforce & Education Task Force (Councilmember Jester suggested renaming it the "Council Workforce and Education Task Force"). * They greenlit the Certified Sites Program to make greenfield properties shovel-ready, with funding for environmental reports. * There was debate on an Accelerator Program for micro-entrepreneurs. Councilmember Jester expressed concern about leasing new space and suggested partnering with DISD or UNT, while Councilmember Holland opposed the initiative due to limited impact. Council reached a conditional consensus, and staff will return with a detailed review before final approval. * Remaining economic development funds were recommended to go to the Catalyst Fund.
Also, the Council discussed the Women's Club building lease revenue ($1,320/year). A council member requested these funds be held for a future Quaker Town Memorial Fund, and staff confirmed they can set that aside pending a formal decision.
Wrapping Up The discussion wrapped with Council thanking Interim City Manager Casey Ogden, Interim Budget Manager Seth Harrell, and the whole budget team for their hard work, especially regarding staff raises and navigating revenue constraints. Staff mentioned they'll be launching a budget survey and simulator soon so the community can weigh in on spending priorities.
The timeline is set: a follow-up work session on August 18, a public hearing on September 15, and budget adoption on September 22. Right after the open session ended, Council moved into a closed session to discuss public power utilities matters related to Core Scientific and consult with attorneys regarding appraisal district classifications.
That was a lot of ground to cover in one morning! It feels like the Council is focused on balancing growth, supporting staff, and keeping rates as stable as possible, even with those utility adjustments. I'll keep my eyes peeled for that budget survey coming soon.
Hope this gives you a good snapshot of the meeting! Catch you at the next one.