Universal City council adopts FY2025–26 budget and sets 2025 tax rate at 0.53 per $100

Universal City on Tuesday adopted its fiscal year 2025–26 budget and set the 2025 ad valorem tax rate at $0.53 per $100 of appraised value following a public hearing and separate votes on the budget and tax measures.

The budget presentation noted the draft FY2026 proposal includes a cost-of-living adjustment for existing staff and no request for additional positions. “The cost of insurance of the health insurances is expected to increase by 35%,” budget presenter Maribel Scott said during the public hearing. City staff told council total general fund revenue was anticipated at $220,532,029 and that tax revenue represents about 78% of the general fund.

City staff highlighted deferred capital items removed from this budget cycle, including a $135,000 space needs assessment, $90,000 for Summit Park and skate-park planning, and a $55,000 annual OptiComm preemption fee that was deferred for future budgeting. The presentation said the fire department utility vehicle purchase was downsized and deferred from $90,000 to roughly $70,000 for a later budget.

Council voted on three separate items tied to the budget process: adoption of the FY2025–26 budget resolution, ratification of the property tax increase reflected in the adopted budget, and an ordinance setting the ad valorem tax rate. The council approved the budget resolution and ratification resolution and passed the tax-rate ordinance on first reading with a total rate of 0.53 (0.442 maintenance and operations; 0.088 debt service). The ordinance requires a second reading before final adoption on Sept. 16.

City staff told the council American Rescue Plan Act funds currently supporting police and fire mental-health officers are expected to be exhausted by the end of calendar year 2025, and staff said municipal growth will drive future demand for additional staffing. The presentation also included multi-year capital lists for the golf course, utility fund capital projects (including a $101,800 golf cart purchase), and street and reconstructions identified for the 2023 reconstruction bond.

The council discussion ranged from praise for improvements to the budget process to concerns about tax levels. One council member said approving the budget would require supporting the proposed tax rates and indicated they would vote against the budget on that basis. City staff and other council members described the current budget cycle and five-year planning steps as improvements to prior practice.

The council approved the budget and related resolutions by motion; meeting minutes record “motion carried” for the votes. The tax-rate ordinance will return for a second reading on Sept. 16, at which point the council may adopt it for final effect.