City of San Angelo staff presented a proposed FY2025–26 budget at an Aug. 5 workshop that balances projected revenues and expenditures while proposing a 5% across‑the‑board pay increase and a net property tax‑rate increase of 0.0403. The proposed tax‑rate change would increase the city’s combined rate to 0.7947 and would raise the median homeowner’s city tax bill by about $58 annually, staff said.

Tina Dierske, the city’s budget presenter, told council members the proposed budget shows revenue growth in property tax and sales tax lines but also notable pressure from retiree insurance and public‑safety expenditures. “For next year’s budget, we’re looking at budgeting flat at 100% of projected year end,” Dierske said when describing the conservative revenue assumptions used for FY2026 planning.

The nut graf: Staff framed the budget as conservative but workable, relying on a projected $3.5 million of marginal revenue and available general‑fund excess of roughly $4.4 million to fund one‑time requests. The proposal applies the 5% pay proposal citywide; staff noted the $2.8 million cost shown on summary slides represents the general‑fund portion while the intent is to apply raises across other funds as appropriate.

Most of the general fund (59%) is budgeted for public safety in the plan, a share staff emphasized repeatedly. The city’s revenue mix shown in the presentation remains heavily dependent on property tax (about 50% of general fund revenue) and sales tax (about 25%). Staff presented scenarios for responding to revenue shortfalls — including hiring freezes, travel/training freezes and other expenditure cuts — and said they monitor sales‑tax receipts weekly and monthly.

Other notable budget elements shown at the workshop include: conservative sales‑tax budgeting (staff proposed budgeting to 100% of projected year‑end collections), continued declines in television franchise fees as consumers shift to streaming, and proposed transfers to support equipment replacement, Fort Concho and the sports complex where hotel‑tax and state office building revenues were proposed as offsets.

Council members and staff agreed to return with the formal budget hearing Aug. 19 and adoption on Sept. 2. Staff said the tax‑rate record vote will be held Aug. 19 and adoption of both budget and tax rate is tentatively scheduled for Sept. 2. The city manager and finance staff will bring more detailed budget amendments and line‑item presentations before final adoption.