Boerne council adopts $181 million FY2026 budget, sets tax rate at 47.16¢ per $100

The Boerne City Council on Sept. 9 adopted the city’s fiscal year 2026 budget and set the ad valorem tax rate for tax year 2025 at 47.16 cents per $100 of taxable valuation.

City staff presented the budget as the final step in the budget process. "Tonight's agenda items are the final step in our budget process," said Sarah Buckalew, a city staff member presenting the item. Buckalew told the council the proposed budget totals $181 million, including $43 million in general fund expenditures, $50 million in special revenue funds and $88 million in utility funds; about 32% of the total is for capital improvement projects (CIP).

The budget presentation explained that much of the year-over-year increase is CIP-related and that interfund transfers of impact-fee balances had inflated the appearance of growth in overall budget numbers. Buckalew described the city's budgeting process and where more detailed documents can be found online.

Council voted 5-0 to adopt ordinance number 2025-10, approving the annual budget for fiscal year 2026. Councilor Macaluso moved the budget ordinance; Councilor Willison seconded the motion.

The council also completed two state-mandated tax items on the same agenda. The body voted to ratify the property tax revenue increase reflected in the fiscal year 2026 budget (motion by Councilor Macaluso; second by Councilor Willison) and then voted 5-0 to adopt ordinance number 2025-11, setting the ad valorem tax rate for 2025 at 47.16¢ per $100 (motion by Councilman Scott; second by Councilman Bunker).

Why it matters: The budget lays out city spending priorities for the year beginning Oct. 1, 2025, and the tax-rate ordinance fixes the municipal portion of property tax bills for the coming year. Buckalew told the council operational increases were modest — about a 1.7% operational increase overall — while the larger dollar increases were tied to capital projects and one-time funding.

Council members emphasized stability in the tax rate. "We, by design, try to keep a very stable tax rate," Buckalew said during discussion. Council members noted appraisals have risen while the rate has remained largely steady over many years.

Votes at a glance: - Ordinance 2025-10, Adopt FY2026 budget: Moved Councilor Macaluso; second Councilor Willison; vote 5-0; outcome: approved. - Ratify property tax revenue increase (required by statute): Moved Councilor Macaluso; second Councilor Willison; vote 5-0; outcome: approved. - Ordinance 2025-11, Set 2025 ad valorem tax rate at 47.16¢/$100: Moved Councilman Scott; second Councilman Bunker; vote 5-0; outcome: approved.

The council held public hearings on both the budget and the tax rate during the meeting; no members of the public spoke during those hearings. The adopted budget document and supporting materials are available on the city’s website, as staff noted during the presentation.

The council completed the business and moved on to other agenda items.