Anna council holds public hearings on FY2026 budget and proposed tax rate, questions focus on police funding and utilities

The Anna City Council held public hearings Sept. 2 on the proposed fiscal year 2026 budget and the proposed property tax rate, with staff detailing revenue assumptions, major capital projects and the drivers of a modest tax-rate increase.

Budget manager Jared Hoey summarized the city’s funds and key numbers, saying, “This year's general fund revenue is at $29,700,000 primarily from property tax and sales taxes,” and that the utility fund revenues are “at $30,900,000 from water sales, wastewater charges, and solid waste charges.” He also listed major capital projects budgeted for the first year, including a $30 million police station, Bryant Park (about $4.9 million), Findlay Park ($7 million) and the Hurricane Creek wastewater treatment plant (about $54 million).

The hearings matter because the council must balance rapid population growth, large one‑time capital costs and ongoing operational needs. Council members repeatedly asked whether the city’s revenue forecasts — especially sales tax, development fees and utility demand — were conservative enough, and whether the budget leaves sufficient capacity to hire and retain public‑safety and public‑works staff as the city grows.

Terri Dobie, identified in the hearing as the city’s budget manager for the tax-rate presentation, explained state requirements and the proposed rates: “The no new revenue rate … would be 0.495928. The voter approval rate … would be 0.532173,” she said, noting the voter‑approval rate includes a 3.5% increase in maintenance and operations revenue plus enough to cover debt service. Dobie told the council that the proposed tax-rate increase is driven primarily by debt service on the $30 million police station and that, despite a higher rate, the average homeowner’s bill would rise by less than $100 in the coming year because of changes in property values.

Council members pressed staff on several recurring topics:

- Revenue assumptions and volatility: Staff said sales‑tax forecasting was intentionally conservative (about a 2% assumed increase over the current year) because monthly receipts have been inconsistent. Development‑fee revenues and building permits were described as highly volatile year to year.

- Staffing and personnel costs: Council members asked how the city is planning for long‑term personnel cost growth given pay raises, COLAs and step increases. Staff described a five‑year projection model that factors COLAs, health‑insurance increases and planned staffing additions (the FY26 budget proposes seven police positions and two custodians in the general fund).

- Debt and capital projects: Staff said the city is keeping the debt‑service portion of the tax rate near an internal target (about 14–15¢) but acknowledged the police‑station issuance pushed the debt side higher this year. Officials said bond dollars for parks and other bond‑funded projects are restricted to those projects and cannot be used for personnel costs.

- Utility fund resilience and rate studies: The utility fund maintains reserves to smooth revenue swings tied to weather and consumption. Staff said a utility‑rate study is planned in FY26 to align rates with the addition of Hurricane Creek and the city’s expanding regional wastewater role.

- Library operations and technology: Council and staff discussed staffing and hours for the new library. Staff described planned use of technology and volunteer support (including an “Open Plus” system and a vendor identified in the record as Biblatteca) to extend access while keeping the staffing footprint lower than a traditional model; the budget includes two custodial FTEs and projected lower operating costs relative to comparable traditional libraries.

Council members urged a clearer five‑year CIP and staffing plan, tighter project prioritization and continued efforts to secure grant funding (including for the SAFER grant for firefighters). Several council members said they want development strategies that increase commercial and higher‑price residential product to broaden the tax base.

No final votes on the budget or the tax rate were taken during the meeting; both matters were presented at public hearings and remain before the council for future action.

Discussion points: conservative sales‑tax forecast (2%); building‑permit volatility (examples: 854 permits in FY23, 1,259 in FY24); FY26 general fund revenues $29.7 million, utility fund $30.9 million; FY26 CIP year‑one highlights include a $30 million police station and a $54 million upgrade/expansion at Hurricane Creek wastewater treatment plant; FY26 budget proposes seven police FTEs and two custodians.

Direction and next steps: staff will bring a utility‑rate study for FY27, continue five‑year forecasting and may return midyear with budget amendments if revenues or grant awards (for example the SAFER grant) change assumptions. The council requested a clearer five‑year staffing and CIP prioritization schedule and signaled interest in pursuing developer contributions and other revenue strategies.

Formal actions taken at the meeting were limited to opening and closing the required public hearings; no budget or tax‑rate adoption vote occurred.

Anna residents, developers and service providers will likely see follow‑up items on council agendas as staff returns with the rate study, CIP prioritization and any midyear budget amendment requests.