Lockhart Council adopts FY2025–26 budget and raises tax rate; public raises cemetery and downtown concerns

The Lockhart City Council on an unanimous 7-0 vote adopted the city's fiscal year 2025'26 operating budget and approved a property tax rate of 55.41 cents per $100 of assessed value.

Assistant City Manager Joseph Rezendes said the budget is balanced for the year beginning Oct. 1, 2025, and ending Sept. 30, 2026, and that Ordinance 2025-19 implements the city's investment, financial and fund-balance policies.

The budget matters because it sets spending for police, fire, streets, parks and other core services; Joseph Rezendes told council that city property taxes comprise about 40% of the general fund and that the proposed tax rate splits into maintenance and operations and interest-and-sinking components.

During the required public hearing on the proposed budget, residents raised two recurring concerns. Frank Coggins, a Lockhart resident, urged the council to increase preservation and maintenance of Lockhart Memorial Park and Hooks Cemetery, saying "make the cemetery great again" and noting the current cemetery mowing budget of $77,125. Coggins recommended council direct the city manager to develop a multi-year improvement plan and appoint a citizen-staff committee to help craft it.

Business owner and longtime downtown advocate Rhonda Reagan told council she opposes the budget'ed visitor center hire (an $85,000 salary in the proposed budget) in favor of pursuing Texas Main Street program membership. Reagan said Main Street offers grant opportunities and downtown business support and urged the council to present how Main Street would work and how much it would cost.

Council members and staff responded that the tourism/visitor center program can serve as the city's primary tourism arm and that a Main Street program could be considered as part of tourism in the future. Councilmembers requested a formal presentation on Main Street so the council can weigh its costs and commitments before deciding.

On the tax rate, the council approved motions adopting the maintenance-and-operations rate at 0.4113 per $100 and the interest-and-sinking portion at 0.1428 per $100, for a combined rate of 0.5541 per $100 (a stated effective increase of 11.85% in the tax rate). Rezendes said the nearly 40% rise in the I&S component is tied to recently issued 2025 certificates of obligation.

Votes at a glance: - Ordinance 2025-19, FY2025'26 operating budget (budget_adoption). Motion: move to approve ordinance 2025-19 adopting the City of Lockhart and Lockhart Economic Development Corporation annual budget for FY2025'26. Mover: Councilman Larson. Second: Councilman Westmoreland. Roll call: Westmoreland (Aye); Mendoza (Aye); Mayor Pro Tem Gonzalez Sanchez (Aye); Larson (Aye); Castillo (Aye); Michaelson (Aye); Mayor (Aye). Outcome: approved, 7-0. - Motion to ratify the property tax increase reflected in the FY2025'26 budget. Mover: Councilman Westmoreland. Second: Councilman Larson. Outcome: approved, 7-0. - Ordinance 2025-20, tax rate (ordinance_adoption). M&O rate 0.4113 per $100; I&S rate 0.1428 per $100; combined 0.5541 per $100. Outcome: adopted via three motions; roll call votes recorded; outcome approved, 7-0.

Council discussion noted the cemetery and street concerns will be addressed as staff develops a pavement management plan and a 3'5-year cemetery improvement plan; Rezendes said some street funds and general fund balance options could be considered for interim repairs and that staff will return to council with details.

The council closed the public hearing on the budget and tax rate after public comment and moved to the remaining agenda items.