The New Braunfels City Council met on Thursday, September 4, 2025, from 5:02 p.m. to 5:29 p.m. in a special/regular meeting to hold public hearings on the FY 2026 Operating Budget and the proposed 2025 tax rate, and to consider first readings of the budget and tax rate ordinances. No members of the public provided testimony. Council unanimously approved both first readings, with final adoption scheduled for September 8, 2025, at 6:00 p.m. at 550 Landa Street. Budget Presentation (Workshop Item A) - Jared Werner, city staff, presented an overview of the FY 2026 Proposed Budget and Plan of Municipal Services, summarizing the budget process from August workshops. - The proposed budget is structurally balanced, with approximately $276.1 million in total budgeted expenditures. - The proposed tax rate is $0.408936 per $100 valuation, flat compared to the prior year, and below the no-new-revenue rate of $0.409475—reportedly the first time in at least 15 years the city has considered a rate below no-new-revenue. - Staff shifted one penny from the debt service (interest and sinking) portion of the tax rate to the general fund, generating an additional $1.3 million in general fund revenue. Staff stated they remain confident in the capacity to issue remaining 2023 bonds despite lower property value growth. - Property value growth is at the lowest level since FY 2013. Overall taxable value growth was 3.8%, driven entirely by Comal County; Guadalupe County value declined 2.8% even with new value included. - The city’s proposed tax rate is approximately 9.1 cents (18.2%) lower than the average of benchmark cities (approximately 49.9 cents). - General fund expenditures: 57% public safety, 14% quality of life, 15% organizational support, and community development/infrastructure. Employee salaries and benefits account for about 74% of expenditures. - The budget includes approximately $7 million in initiatives tied to the City Council’s strategic plan and prioritizes recurring capacity for market compensation adjustments. - The budget adds five police department positions (two full-time, three part-time). - Staff referenced the taxpayer impact statement required by House Bill 1522 (effective September 1, 2025), showing median homestead property tax comparisons for Comal and Guadalupe counties. - Councilmember Edwards asked about the percentage breakdown for Comal ISD; staff said Comal ISD offers a 20% homestead exemption and would provide the information. - Councilmember Carter asked about delinquent tax collection rates; staff said the city budgets a 97.5% collection rate and accounts for penalties, interest, and delinquent taxes based on historical trends. Public Hearings - Mayor Linnartz opened and closed public hearings on the FY 2026 Operating Budget and the proposed 2025 tax rate. No members of the public spoke. First Reading: FY 2026 Operating Budget Ordinance (Item C) - Karrie Cook, budget manager, presented the budget order, listing additions to the proposed budget: - A crime analyst added through an expansion of the MCVA grant. - A shift in the employee compensation strategy, with COLA, step, and market adjustments starting in October rather than split between October and April. - Extended funding timelines for golf and airport projects (rolling funding from FY25 to FY26). - Increased contractual obligations for reimbursements in the Creekside Tours Fund (transparency only; no citywide budget impact). - A police department shooting range feasibility study, added based on budget workshop input. - Robert Camareno explained the shooting range feasibility study would identify needs, acreage, and cost estimates to prepare a potential future public safety bond proposition. - Mayor Pro Tem Spradley moved approval of the first reading, seconded by Councilmember Labowski. The motion passed unanimously. First Reading: 2025 Ad Valorem Tax Rate Ordinance (Item D) - Karrie Cook noted the proposed tax rate is equal to the current rate, but because it is below the no-new-revenue rate, the motion language reflects an official decrease. - Mayor Pro Tem Spradley moved to adopt a tax rate of $0.408936 per $100 valuation—an effective 0.1% decrease—with $0.193888 for debt service and $0.215048 for operations and maintenance. Councilmember Labowski seconded. The motion passed unanimously. Key Outcomes - Council unanimously approved the first reading of the FY 2026 Operating Budget and Plan of Municipal Services, including the budget order. - Council unanimously approved the first reading of the ordinance adopting the 2025 ad valorem tax rate of $0.408936 per $100 valuation. - Final adoption of the FY 2026 budget and 2025 tax rate is scheduled for September 8, 2025, at 6:00 p.m. in the City Council Chambers at 550 Landa Street. - No executive session was held; the meeting adjourned at 5:29 p.m.
