Budget Work Session - August 11, 2026

The New Braunfels City Council held a special budget work session on August 11, 2026, at 5:04 p.m. The primary purpose of the meeting was to receive a presentation from the City Manager on the Proposed Fiscal Year 2027 Budget and the 2026 tax rate, and to formally schedule the required public hearings. All seven council members were present; Mayor Michael French attended via videoconference. The meeting adjourned at 6:47 p.m.

Discussion Items

• Presentation on FY 2027 Proposed Budget and 2026 Tax Rates: City Manager Robert Camareno delivered a comprehensive presentation on the proposed $305 million budget, which represents an increase of $27 million over the adopted FY 2026 budget. Key highlights of the presentation included:
  • Tax Rate: The proposed property tax rate remains flat at $0.408936 per $100 valuation. This rate is below both the No-New-Revenue tax rate of $0.415613 and the Voter Approval tax rate of $0.4250.
  • Property Values and Tax Impact: Median taxable home values have decreased in both Comal County (from $287,080 to $281,180) and Guadalupe County (from $246,910 to $237,372). Under the proposed rate, the median homeowner in Comal County would see a $24 annual decrease, and in Guadalupe County a $39 annual decrease. The No-New-Revenue rate would generate an additional $845,000 in revenue, while the Voter Approval rate would generate an additional $2 million.
  • Revenue and Expenditures: The general fund budget is proposed at $118.5 million in revenues. Revenue growth is driven by sales tax collections, while property tax revenue is projected to remain flat. The budget includes a 2.5% cost of living adjustment and step increases for eligible sworn personnel, marking the first health insurance premium increase for employees in nine years.
  • Strategic Initiatives: $12.1 million in initiatives aligned with the city's strategic plan were funded, including an in-house street striping crew, expanded traffic calming measures, new positions, and continued funding for 12 firefighters previously covered by a federal grant.
• Council Policy Discussion: A significant portion of the discussion centered on the long-term fiscal strategy. Councilmember Toni Carter argued that maintaining a flat tax rate since 2014, despite a cumulative 41% inflation rate, has led to stressed services and underfunded departments. She expressed a willingness to consider a public vote on a tax rate increase to address infrastructure deficits, stating that "not having a tax rate increase is a good thing" is a potentially misleading narrative when needs are unmet. Councilmember Lawrence Spradley cautioned about the cumulative burden on middle-class residents, citing recent increases in solid waste and electric utility rates, and emphasized the need for a careful balancing act. Councilmember Nikki Shaw agreed that the council should take the tax rate discussion seriously while appreciating the city's fiscal discipline.

Key Outcomes

• Public Hearings Scheduled: The council unanimously approved setting the public hearings on the proposed tax rate and FY 2027 Budget for Thursday, September 10, 2026, at 6:00 p.m. The motion was made by Councilmember Spradley and seconded by Councilmember Labowski.
• Adoption Timeline: The final adoption of the FY 2027 Budget and 2026 Tax Rate is scheduled for Monday, September 14, 2026.
• Upcoming Workshops: Detailed budget workshops are scheduled for August 17, 18, and 19 to delve into departmental budgets and further discuss the tax rate implications.