City staff told the San Angelo City Council at an Aug. 5 budget workshop that state limits on property‑tax revenue growth have narrowed local budget flexibility and that a pending proposal to tighten the cap would deepen the pressure.

“Tina Dierske,” the city’s budget presenter, explained how the 3.5% revenue‑cap for existing property valuations restricts the city’s ability to increase property‑tax revenue for existing properties and said the city has filed letters opposing Senate Bill 9, which would reduce that cap to 2.5% if enacted. “If that was to go through, how that would affect our public safety in this structure here would just be it's very detrimental and it would be a major loss to the city of San Angelo,” Dierske said.

Mayor Lamine and other council members echoed the point that municipal costs (the city’s municipal cost index) are rising faster than the revenue cap allows, with the mayor saying the municipal cost index shows an average increase of about 4.5% for the cost of providing city services. “3.5% is a handicap,” a council member observed during the discussion, noting further reductions would make it “very strapped.”

Nut graf: City leaders emphasized that most of the general fund (roughly 59% in the proposed budget) is consumed by public safety; staff warned that further statutory limits on property‑tax revenue growth would disproportionately squeeze the city’s ability to fund police, fire and emergency services.

The presentation listed additional property‑tax reductions the city has absorbed in recent years, including statewide business personal‑property medical exemptions and homestead/circuit‑breaker caps that removed valuation and revenue from local rolls. Dierske said the city also faces increasing cost pressures from retiree insurance and other fixed costs.

No formal council action was taken at the workshop; staff asked the council to help convey opposition to state legislation and to consider the budget consequences of constrained property‑tax revenue in upcoming budget decisions.