El Campo projects tighter FY26 budget, may seek tax increase; staff propose EMS staffing addition

City of El Campo staff told city leaders at a budget workshop that fluctuating sales-tax revenue has put the proposed fiscal year 2026 operating budget under pressure and that they expect to return in July with clearer tax-rate options.

"Try to make this painless for y'all tonight," said Britney, a city staff member and the workshop presenter, as she outlined projections showing sales tax receipts about 7% below the prior year and a normalized forecast moving that shortfall to roughly 2–3 percent. She said the next two months of receipts will be determinative for setting a tax rate.

The workshop focused on maintaining current services while responding to weaker-than-expected sales-tax collections. Britney said no across-the-board pay raises are included in the proposed operating budget and that a potential tax increase would be intended to maintain the status quo rather than fund the proposed EMS staffing change.

Staff proposed one new public-safety position: an additional paramedic to allow an EMS supervisor, identified in the meeting as Garrett, to staff another ambulance shift. Britney said that position would be paid entirely from EMS revenue or Emergency Services District (ESD) funds and "would not affect your tax rate at all."

City staff said other proposed changes include a 25-cent transportation user fee (the same amount shown last year), a tentative 3% increase associated with the city's solid-waste contractor (presented as an expectation from TDS that would raise residential customers about 81 cents per month), and forthcoming water and sewer rate proposals that staff will present later. Britney said the water- and sewer-rate amounts had not yet been projected and would be brought back for council consideration.

On capital and debt, staff said the operating budget is about $28.8 million while capital plans total about $35 million, and that much of capital spending is paid with grants. Britney said the city's debt-service payments for fiscal 2026 are about $3,000,000, with roughly $1,500,000 expected from the general fund and $1.45 million from the utility fund.

Other items identified for the coming year were a new mower for parks, IT server replacements and in-house IT transitions, parking-lot repairs, and additional patrol vehicles for the police department. Council members asked whether patrol cars could be funded from fund balance; staff said they will propose using fund balance and will return with specifics.

Staff said outside agencies with existing contracts — including the Chamber of Commerce (funded through hotel-motel revenues) and projects with the community development corporation (CDC) — are included in the proposed budget at contract levels unless the council objects.

No formal vote was taken at the workshop. Staff indicated they will provide updated revenue and tax-rate projections after June and July tax receipts and when updated property values are available, and will present a proposed budget in July for formal action.