City officials in Waco are taking proactive steps to navigate economic uncertainties as they prepare for the fiscal year 2026. During a recent work session, city leaders emphasized their commitment to supporting current employees and maintaining essential services amid signs of a slowing economy.

The discussions highlighted the importance of monitoring the ongoing 89th legislative session, with updates expected on how new laws may impact city operations. Chief of Staff Ashley Nystrom is set to provide insights on legislative developments that could influence the city’s financial strategies.

Despite the economic challenges, Waco's local economy has shown resilience. Preliminary revenue indicators remain strong, although officials anticipate a decrease in certified values. Sales tax revenues are positive but have begun to slow, largely due to reduced discretionary spending among consumers. However, the city is optimistic about its hotel occupancy taxes, which are projected to contribute an additional $300,000 to the fund balance.

City leaders are focused on building a more efficient operational base to ensure that Waco can weather the cyclical nature of economic slowdowns. They are committed to preparing for the future while continuing to support the community and its employees. As Waco moves forward, the emphasis will be on adaptability and resilience in the face of changing economic conditions.