Beaumont council adopts $2026 budget, holds tax rate steady as fund balances rise

Beaumont City Council approved a fiscal year 2026 operating budget, a capital program and a property tax rate on Sept. 16 after a multi-hour presentation and extended discussion by city staff and council members.

The council voted 7-0 to adopt the budget ordinance and to set the city's property tax rate at 0.659663 per $100 of assessed value, a rate the city said keeps the millage unchanged while state law requires the council to state an effective increase because of rising property valuations. The council also approved a capital program and related implementing actions.

City Manager Williams told the council the budget was developed after workshops, public input and council direction, and emphasized the administration's effort to grow and protect fund balances while meeting operating and public safety needs. He said staff adjusted the draft after council feedback to reduce proposed use of reserves and preserve a stronger fund balance.

City Manager Williams said the administration reduced proposed expenditures by roughly $3.1 million from an earlier draft, raising the general fund balance to about $41,722,082 and setting the general-fund reserve at 25.7 percent and the water fund reserve at roughly 30.2 percent. He also said the administration preserved the tax rate and froze water-rate increases for qualifying senior customers.

The budget includes raises for city employees: a 3 percent cost-of-living adjustment for civilian employees and phased compensation-study increases for selected positions; multi-year contract increases for the Beaumont Fire Department also were built into the figures. Staff told the council projected increases for sworn public-safety salary costs together account for several million dollars of the spending plan.

Council members pushed staff for clarity on the projection methodology and asked for tighter control of recurring overtime costs, especially in the fire department. Councilman Turner and others said they wanted a larger, more conservative fund balance; the city manager responded that the adopted budget meets the council's direction and that staff will continue active, monthly budget management.

The council approved the tax-rate ordinance in three recorded votes: overall rate 0.659663 per $100; maintenance-and-operations rate 0.478628 per $100; and debt-service rate 0.181035 per $100. The vote on the ordinance ratifying the budgeted tax increase also passed 7-0.

Staff noted outside metrics supporting fiscal stability: Moody's credit commentary and a recent unmodified audit opinion. They also said the city had increased property values and sales tax collections in recent years, which contributed to revenue projections and allowed the council to adopt the budget without increasing the millage.

Looking forward, staff told the council the budget remains a working document: directors will monitor hiring, overtime and expenditures throughout the year and return with adjustments as needed. Council members asked for more visibility into overtime drivers, vacancy savings, and the precise recurring costs of personnel increases.

The council's action also included approval of the FY2026 capital program and several consent items tied to capital projects earlier on the agenda.

The budget ordinance and tax-rate ordinances took effect after the September 16 votes; staff said detailed budget documents and a public-friendly summary are available on the city's website.