City commission approves budget, tax rate and a package of ordinances and contracts

Rio Grande City commissioners approved the city’s fiscal 2025–26 budget and a proposed tax rate of $0.53 per $100 of assessed value and took votes on a series of ordinances, contracts and grant applications during their Aug. 28 meeting.

The commission adopted the proposed municipal budget for Oct. 1, 2025–Sept. 30, 2026 and voted to set the tax rate at 0.53, which the city finance director said would increase maintenance-and-operations revenue compared with last year and generate funds intended for capital projects and staffing increases. The commission also approved multiple second readings of local ordinances and a range of contracts and grant actions during the meeting.

Why it matters: Adopting the budget and tax rate funds planned capital projects identified by city staff and elected officials — including a planned West-side fire substation, an animal-control facility and street-paving work — and backs new pay-scale and staffing steps the city included in its proposed operating plan for 2025–26.

Major actions and outcomes

- Budget and tax rate: The commission approved the fiscal 2025–26 budget on first reading and adopted a tax rate of 0.53 per $100 valuation (maintenance and operations rate 0.393113; interest and sinking rate 0.136887). Staff said the rate would raise more maintenance-and-operations tax revenue than last year; the finance presentation estimated the change would add roughly $12.51 per year for a homeowner with a median Rio Grande City homestead value of about $123,000. The commission approved the rate by recorded vote and carried the motion.

- Ordinances: The commission approved multiple ordinances on second or first reading, including changes to local speed limits (ordinance 2025-05), restrictions on open burn (ordinance 2025-06), limits on smoke shops within 1,000 feet of schools (ordinance 2025-07, amended), and the creation of film-permitting guidelines (ordinance 2025-08, first reading). Several of those ordinances were advanced with motions to forego additional readings where permitted.

- Contracts and procurement: The commission approved a number of vendor agreements and payments, including final payments on local road projects, authorization for contract work on the Los Veal Road widening project, an engineering engagement for downtown construction work, award of a construction contract for the library expansion to the lowest responsive bidder, and authorization for financial- and bond-advisory services needed to support a Drinking Water State Revolving Fund application.

- Grants and resolutions: The body ratified grant applications and project participation, including submitting a historic-preservation fund application that staff said could bring up to $750,000 in federal funds for downtown and Fort Ringgold rehabilitation. The city also accepted a Texas State Library & Archives Commission (TSLAC) Library Infrastructure Facility Improvement grant for $250,000.

Votes at a glance (selected)

- Adopt 2025–26 proposed budget (first reading): approved. - Adopt tax rate 0.53 per $100 valuation: approved (motion carried; recorded vote on the floor). - Ordinance 2025-05 (speed-limit changes — second reading): approved. - Ordinance 2025-06 (open-burn rules — second reading): approved; reading forgo motion carried. - Ordinance 2025-07 (smoke-shop location limits — second reading, amended): approved; forgo reading motion carried. - Ordinance 2025-08 (film-friendly guidelines — first reading): approved to advance on first reading. - Library expansion: awarded to the lowest responsible bidder (JS Solutions Corp.) and final contractor and grant approvals implemented: approved. - Purchase of 0.356 acres adjacent to Silver Star Park (Pena Family/Central Palm Realty LLC) for $150,000 (subject to contract review): approved subject to legal review. - Contract approvals related to water-system projects and meter replacement (TWDB SRF / AquaWorks): approved (conditions noted regarding local hiring efforts).

What commissioners said: Agenda motions were typically moved and supported by multiple commissioners. In discussion of the tax rate and budget, commissioners emphasized the need to fund capital projects and employee pay adjustments while noting the sensitivity of property-tax increases to residents.

Context and next steps: Many of the approvals at the Aug. 28 meeting move projects into procurement, grant-application or contracting steps. Staff will return to the commission for second readings where required by ordinance, for contract execution and to complete grant and loan paperwork with state or federal partners.

Ending note: Several items approved at the meeting are contingent on follow-up actions (contracts, legal review and grant awards). City staff told the commission they will report back as projects move into construction or when contracts are executed.