San Angelo adopts FY2026 budget and raises tax rate; council approves 0.7947 rate amid debate

The San Angelo City Council on Sept. 2 adopted the fiscal year 2026 budget and approved a property tax rate of $0.7947 per $100 of assessed value, a change council characterized as needed to fund voter‑approved Coliseum bonds, public safety and other operating needs.

Finance Director Tina Dierski presented the second reading and public hearing for the budget and tax rate. Dierski told the council the citywide operating revenues total about $242 million and operating expenditures about $241 million; the budget includes funding for public‑safety items, software upgrades, retiree insurance and a 5% employee pay increase. The staff memo accompanying the budget says the budget will raise more property tax revenue than last year by $5,716,170 (9.7%), and that $861,795 of that increase is revenue attributable to new property added to the tax roll.

Dierski said most of the rate increase stems from the Coliseum bond referendum approved by voters; she explained the council set the maintenance‑and‑operations (M&O) rate at 3.5 percent as allowed under state law to fund ongoing services. During the public council exchange, Councilmember Mary raised concerns about approving the tax rate immediately after the recent flood and asked for an additional week to examine whether large potential private capital investments (the Chamber earlier cited a potential $100 million in prospective capital investment) might affect the city’s revenue picture. Mary said she received many constituent calls and wanted to be sure the council considered whether further review could alter the decision.

Councilmembers responded that the budget meets legal requirements for a balanced budget, that much of the tax‑rate change reflects the voter‑approved Coliseum bonds and that waiting would not create material benefit because valuations and citizen votes determine longer‑term rate options. The council approved the budget and the tax rate; voting on the tax‑rate ordinance recorded a 6‑1 result on the rate (one member opposed), and the budget adoption recorded the same split in roll‑call votes for the ordinance reading.

Why it matters: Adopting the budget and setting the tax rate determines city services, staffing, capital projects and the city’s fiscal capacity for the coming year. Council debate reflected tension between immediate recovery needs after flooding, constituent concern about tax increases and the legal constraints the state places on municipal revenue growth.