New Braunfels City Council Special Meeting - August 19, 2026: Proposed FY2027 Budget and Tax Rate

The New Braunfels City Council held a special meeting on August 19, 2026, at 5:00 PM to discuss the FY2027 Proposed Budget and Plan of Municipal Services, review tax rate scenarios, and approve a proposed tax rate. The council also received an update on the charter review committee process. The meeting included public comment and ended with the adoption of a motion setting the proposed tax rate at the no-new-revenue rate.

Public Comments & Testimony

• David Warmke (District 5) spoke during the budget workshop, noting the complexity of the budget and highlighting that approximately $2.6 million in potential revenue is diverted to five Tax Increment Reinvestment Zones (TIRZs) and about $13.5 million in sales tax is diverted to 4B economic development. He suggested these diversions, while originally intended to spur growth, may now be working against the general fund and require serious review.

Discussion Items

• FY2027 Proposed Budget and Plan of Municipal Services (Item 1A): City Manager Robert Camareno, Jordan Matney, and Assistant City Manager Jared Werner presented the third and final budget workshop. They reviewed enterprise funds (airport, golf course, civic center, solid waste) and provided two scenarios at the no-new-revenue tax rate. Scenario 1 included a 3% cost-of-living adjustment (COLA) for employees, funding for police, fire, streets, school resource officers, and other initiatives. Scenario 2 explored a 3.5% COLA but required reductions in street concrete funding and crack sealer replacement. Council debated the scenarios, with some members advocating for the no-new-revenue rate to avoid overburdening taxpayers and others expressing concern about unmet needs, such as $3.37 million in mandatory police and fire expenditures. The council did not vote on the specific scenarios but focused on the tax rate vote.
• Proposed 2026 Tax Rate (Item 1B): The council discussed and voted on a proposed tax rate. The no-new-revenue rate, calculated at $0.415613 per $100 of assessed valuation, was presented as the maximum rate that could later be adopted. The council heard from staff that the current rate ($0.408936) is below the no-new-revenue rate due to declining property values and a new state law exempting business personal property. After public comment, Mayor Pro Tem Capizzi moved to approve the rate, seconded by Councilmember Labowski.
• Charter Review Committee (Item 2A): City Manager Camareno presented an update on the charter review process, including a request for qualifications for outside legal counsel. He proposed a 7-member committee (one from each council district plus one at-large appointed by the mayor) with an application process. Council discussed the size of the committee; there was consensus that 7 might be too small, and many members favored 9 members (6 district representatives and 3 at-large) with potential alternates. No formal vote was taken on the composition; staff will send the draft application to council for review before launching.

Key Outcomes

• Tax Rate Approval: The council voted unanimously (7-0, with Councilmember Carter arriving late at 5:02 PM) to set the proposed property tax rate at $0.415613 per $100 of assessed valuation, with $0.193921 allocated to debt service and $0.221692 for operations and maintenance. This is the no-new-revenue rate and serves as the ceiling for final adoption. The public hearing on the tax rate and budget is scheduled for Thursday, September 10, 2026, at 6:00 PM, and final adoption will occur on Monday, September 14, 2026, at 6:00 PM, both at City Hall.
• Charter Review Committee Next Steps: The council plans to review the draft application and finalize the committee size and selection process. Staff will launch the application after receiving council feedback, with a timeline aiming for committee appointments in late September or October 2026, and a potential May 2027 election for any charter amendments.