City of Leon Valley staff presented the proposed fiscal year 2026 budget Aug. 19 and the council set the proposed 2025 property tax rate for public hearing.

Dr. Crystal Caldera, city manager, summarized the budget and recommended options for using an estimated $63,007.66 surplus. The packet showed total resources and expenditures and included recommended targets for reserves, capital and operating priorities. Caldera reported that county property valuations produced a no‑new‑revenue rate of 0.50504; the council elected to propose a rate of 0.51504 (one cent above the no‑new‑revenue rate) to create a modest surplus and close the operating gap. The proposed rate will be published and the council will hold required public hearings, with formal adoption scheduled for Sept. 2.

Councilors and staff then discussed priority uses for the estimated $63,007.66 surplus and the larger reserve fund. Council consensus assigned funds for several near‑term capital and maintenance needs: Caldera said she would assign $200,000 toward a potential Forest Oaks pool grant match and $200,000 toward a replacement ambulance (both are assigned‑reserve amounts to support future procurement and grant match timelines). Councilors also directed staff to restore $30,000 for fire department repairs, add a mass‑notification/geofence subscription (approximately $6,500 annually) for emergency alerts, add some funding back to parks maintenance and place remaining funds into the general fund reserve. Council members noted the red‑light camera revenue stream is declining and emphasized prioritizing public safety and maintenance spending.

The council also discussed the July 4 celebration. Staff advised the event cannot be sustained in operating expenditures for FY2026; members discussed alternatives including a one‑time draw on the economic development reserve for a modified 250th‑anniversary event, but the dais did not commit to funding a full July 4 celebration out of the operating budget this year.

Why it matters: The proposed tax‑rate change and reserve assignments will affect city revenues, the FY2026 operating plan and future capital programs. The council’s direction to assign $200,000 for an ambulance and $200,000 for a pool grant signals prioritization of public safety and potential capital grants.

Discussion vs decision: Setting the proposed tax rate and directing staff to assign reserves are council actions that require public notice; the tax rate will be finalized only after the required public hearing and adoption process. The council approved putting the amended tax rate and budget on the Sept. 2 agenda for adoption consideration.