Copperas Cove council reviews draft FY2025–26 budget, directs staff to proceed

Mayor Dan Yancey and the City Council heard a presentation Tuesday on the draft fiscal year 2025–26 budget and gave staff direction to continue preparing a proposed budget for adoption this summer.

Ariana Beckman, director of budget, told the council the general fund faces a deficit that varies with pay decisions and recommended a menu of options and assumptions for council direction. ‘‘If we keep the market adjustments as step plan increases, then that deficit will change to a positive balance of $433,000,’’ Beckman said, summarizing one of the staff scenarios.

The presentation explained the deficit two ways: a $1,680,000 shortfall if market adjustments for non‑public‑safety employees and step increases for police and fire are included; and a smaller $866,000 gap if market adjustments are removed. Beckman said staff packages to close the gap include an ongoing payment expected from a mental‑health unit grant, vacancy/position holds, increased reimbursements from enterprise funds, and revenue assumptions that depend on pending state legislation affecting disabled‑veteran property tax relief.

Beckman told the council the budget assumes continuation of a $250,000 mental‑health unit grant that this year offsets the cost of three police officers; she said that grant amount ‘‘equals to the expense for 3 police officers.’’ Council members asked for confirmation that, if the grant ends, those personnel costs would need to be budgeted in future years.

Staff outlined additional proposed changes and one‑time requests. Among the items listed in the workshop packet and presentation were: vacancy holds across departments estimated at $600,000; a proposed 10% increase in administrative reimbursements from enterprise funds; two IT projects (replacement of Microsoft Office licensing and network testing) with combined estimated costs about $262,000; and a proposed ongoing code‑compliance demolition program initially funded at $10,000. Beckman also identified one‑time requests totaling roughly $61,000 in the current packet (including a police records‑room window replacement at $26,000 and cemetery‑software at $30,000) and noted several additional annual new requests that staff would carry forward for council review.

Beckman walked the council through property tax and assessed‑value assumptions. Staff reported estimated assessed value increases of roughly 10 percent compared with last year’s certified values but said most of that increase is allocated to debt service (interest and sinking). Certified values are not final until July 21, Beckman said.

Council members asked clarifying questions on staffing and grant dependencies and requested continued monitoring of pending legislation that could alter the city’s revenue outlook. After discussion, council members indicated support for staff’s recommended path and directed staff to proceed with preparing the proposed budget and the related public hearings and schedule for adoption.

Staff emphasized next dates in the budget calendar: the city manager will present the proposed budget June 17; departmental presentations will follow later in June; a public hearing on the proposed budget is scheduled for July 31; and final adoption is planned for August 19.

What happens next: staff will finalize the draft for the June presentation, continue to monitor the state legislative process for revenue changes that affect the city’s calculations, and bring budget documents and public‑hearing notices to council per the schedule.