Helotes presents balanced draft FY2026 budget with targeted raises, staffing additions and 3‑year plan for new medic unit

Helotes city staff presented a draft fiscal year 2026 municipal operating budget on Aug. 2025 that the administration described as a “balanced budget within the tax levy,” with proposed cost‑of‑living adjustments (COLA), two targeted position increases and a recommendation to spread a planned Medic 3 ambulance purchase over three years.

City Administrator Henry Hayes told council members the proposal preserves the current 0.31‑dollar tax levy and shows a balanced projection while making specific personnel and capital recommendations. “What you will see on tonight is actually a balanced budget within the tax levy,” Hayes said as he opened the presentation.

The draft includes a recommended 6.25% COLA for most city departments, an 8.25% increase for police and an 8.5% increase for emergency communications, a package Hayes called his “strong recommendation” to address turnover and vacancies in public safety. Hayes summarized the recommendation: “6.25% cost of living adjustment for all departments except for police and emergency communications. So for police, 8.25% increase, and for emergency communications, 8.5%.”

Hayes also recommended adding an assistant to the city administrator position; council discussion later cited an included annual cost of about $67,200 for that role. Hayes proposed a three‑year purchase plan for a new Medic 3 ambulance to spread timing and cost, saying the three‑year option would move some procurement into a later fiscal year and smooth delivery timing: “I would recommend is that you consider and support a 3 year purchase as opposed to a 2 year purchase.”

On benefits, Hayes said the city received more favorable health‑insurance bids than anticipated and selected Fusion Health after a competitive process. He noted participation levels and budget planning assumptions: “We had 14 bids, 3 of them highly competitive. The 1 that we selected was Fusion Health.” He also said 65 of 84 employees were using the plan and that staff planned on an enrollment forecast of up to 89 employees for budgeting.

Finance Director Daniel Rodriguez reviewed fund balances and reserves. He said the city’s general fund held just over $11 million at the close of fiscal year 2024 and the administration projected it to grow to about $12.3 million at the end of the current fiscal year, an increase of roughly $1.2 million. Rodriguez tied the reserve ratio to the city’s expenditure base and explained how reserves translate to months of operating expenses.

Council members generally expressed support for the direction while signaling they want further work on compensation strategy and long‑term staffing. Council member Sanders said the budget is a “good first step” but urged a market‑based compensation study so the city can address entry, mid and senior pay bands. Sanders also emphasized the need to “take care of the people who take care of our city,” echoing other members’ comments that pay remains a recruitment and retention challenge.

Several council members said they supported holding capital reserves for one‑time uses only and avoiding ongoing obligations that would require tapping reserves to fund recurring costs. Council members also discussed three firefighter positions that could be funded if grant support materializes; Hayes said those positions were included in planning but not strictly requested in the immediate recommendation unless the grants come through.

No final vote on the budget occurred at the meeting. Hayes summarized next steps: the administration will bring fee‑schedule changes and the budget back to the council at a public hearing on Sept. 11 and then return for final readings and adoption as part of the normal budget process.

Ending: Council members praised staff for multiple rounds of budget refinement and for securing lower health‑insurance costs than projected. The council will continue deliberations and hold required public hearings before any final adoption of the FY2026 budget.