Cibolo City staff presents $25.1 million FY26 draft general fund, warns of reserve gap as ARPA support ends

Cibolo City staff presented a work‑in‑progress FY26 general fund budget of about $25.1 million at a council workshop, outlining revenue projections, mandated costs and a projected reserve shortfall that staff asked council to consider before adopting a budget and tax rate.

City staff said the draft general fund includes roughly $17 million — about 67% of the total — for salaries and benefits and that staff continue to refine market adjustments for positions not moved to market in earlier cycles. "This year, it's a $23,000,000 budget," a staff presenter said when contrasting the FY25 adopted numbers with FY26 projections, and added that continuing market adjustments and benefit cost increases push the FY26 work‑in‑progress total toward $25.1 million.

Why it matters: staff told council the city is moving away from one‑time federal American Rescue Plan Act (ARPA) funding that supported public‑safety market adjustments in recent years. That phase‑out, combined with mandated interlocal agreement costs and rising health‑care and technology expenses, will require either use of reserves, additional revenue or spending reductions.

Key details

- Budget size and major lines: staff described a…