Copperas Cove council proposes 0.686419 tax rate; weighs delaying market pay increases

The Copperas Cove City Council on Aug. 5 voted to propose a property tax rate of 0.686419 and directed staff to prepare a final FY 2025–26 budget that includes several changes to the draft plan, including options to delay or reduce market pay adjustments, apply $1,000,000 of debt service fund balance toward next year’s debt, and retain several one‑time spending requests.

Why it matters: The proposed tax rate and the budget directions will affect the typical homeowner’s annual property tax bill and ongoing city payroll costs. Staff presented options showing the impact on an average homestead taxable value of $208,210 and on the city’s projected general fund deficit.

City Manager Ryan Havela and Director of Budget Arianna Beckman led the council through a worksheet showing choices for revenues and expenses and how each option changes the general fund. Beckman told the council the average homestead taxable value used for the calculations is $208,210 and that the example annual tax bill at the current rate was $1,336. The staff worksheet showed: the “no new revenue” tax-rate scenario (the rate that would keep the average property’s tax bill flat) at about $0.64 per $100 of taxable value; the voter‑approval portion of the rate at about $0.73 (a $189 annual increase for the average homestead); and an option of $0.71 tied to debt plus the no‑new‑revenue calculation.

Beckman and Havela presented a set of staff options: increase interest revenue estimates, consider the voter‑approval rate for operations while using debt‑service fund balance to lower the debt component, add a city website chatbot subscription, create assistant city manager position costs, and several one‑time items including a $150,000 match for the Allen House, a tax‑increment study, strategic marketing, contract fundraising for Rodey Park, and digital records conversion. Havela emphasized the difference between ongoing operating deficits (about $300,000 under the selected options) and one‑time costs (about $418,000) that could be covered from fund balance. He recommended directions to staff so the final budget can be prepared for adoption.

During citizens forum, Ashley Wilson, who identified herself as the office manager for Parks and Recreation and a city employee, urged council not to eliminate market adjustments for employees. She said the city already lags neighboring jurisdictions on pay and warned, “Not giving the employees their deserved market adjustments can ultimately impact the quality of life and services for citizens.” She cited fall soccer registration that generated about $45,000 in revenue as an example of service lines that could be harmed by turnover.

Council discussion focused on tradeoffs between maintaining market adjustments, using fund balance, and reducing or delaying pay changes. Councilmembers also debated allocations to nonprofit partners. After discussion council gave staff direction to reflect the following changes when preparing a final budget for adoption on Aug. 19: include the additional interest revenue, set a proposed tax rate of 0.686419, include the annual costs for the hosted website chatbot and the assistant city managers as shown in the worksheet, allocate the non‑city organization amounts shown on the screen (including revised amounts for the Hill Country Transit request), and include the one‑time expenditures described in the worksheet. The council scheduled a public hearing and final adoption vote on Aug. 19.

Formal action: Council took a record vote to propose the tax rate of 0.686419. The clerk called the roll; Councilmembers Christina Strophos, Rita Hogan, Sean Ozona, John Hale, Del Treadway, Fanya Hart and Jack Smith voted in favor. The vote was recorded as passed and the adoption vote is scheduled for Aug. 19.

What remains: The Aug. 19 meeting will be the formal adoption hearing; staff will produce a final budget and ordinance text reflecting the council’s directions.

Ending note: The council’s choices balance short‑term use of fund balance and one‑time investments against ongoing pay and operating costs; the final adoption on Aug. 19 will fix the city’s tax rate and the FY 2025–26 budget.