Laredo City Council discusses fiscal year 26 budget with focus on public safety funding

During the recent Laredo City Council Workshop held on August 14, 2025, city officials discussed the fiscal outlook for the upcoming year, focusing on budget allocations and revenue sources. The meeting highlighted the city's financial strategies, particularly concerning the general fund and special revenue funds.

A significant topic of discussion was the projected revenue from the Laredo bridge operations, which is expected to contribute approximately $43 million to the general fund. This figure is part of a broader $89 million generated by the bridge, with the city retaining half of the toll revenue. The council emphasized the importance of analyzing these figures to ensure they align with the city's financial goals and industry standards.

The proposed budget for fiscal year 2026 includes total appropriations of $163 million for special revenue funds, with key allocations such as $39 million for sports and community venues and $42 million for health grants. The general fund, which supports essential services like public safety and public works, is estimated to have a balanced budget of $287.8 million in revenues and expenditures, resulting in a fund balance of approximately $54.8 million.

City officials noted a slight increase in the fund balance from the previous year, which is a positive indicator for the city's financial health. The council aims to gradually increase this balance to improve the city's bond rating and financial stability.

The meeting also addressed personnel costs, which represent a significant portion of the budget. The city plans to conduct an efficiency study to assess staffing needs and ensure that personnel expenditures are justified. This is particularly relevant as the city anticipates a cost of living adjustment (COLA) for employees, which will impact the general fund.

In terms of property taxes, the council reported a steady increase in taxable values, with projections indicating a total taxable valuation of $26.6 billion for the upcoming fiscal year. The proposed tax rate for fiscal year 2026 is set at 0.50609, reflecting a slight reduction from the previous year.

Overall, the workshop underscored the city's commitment to maintaining fiscal responsibility while addressing the needs of its residents. The council plans to continue refining the budget and will revisit these discussions as they prepare for the upcoming fiscal year.