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Galveston council approves FY2026 budget amendment, sets maximum tax rate; vote 4-3
Summary
After hours of debate about reserves and employee pay, the Galveston City Council approved a FY2026 budget amendment that raises the city's not-to-exceed tax rate to support a larger fund balance and a 2% cost-of-living adjustment for civilian employees.
The Galveston City Council approved an amendment to the city's proposed fiscal year 2026 budget and set a not-to-exceed property tax rate that would fund it, voting 4-3 on Aug. 28.
The motion approved "item 8a with the addition of funding the fund balance to a level of 120 days and a 2% COLA for civil employees," as read into the record by Mayor Craig Brown before the roll call. The motion passed 4-3 on a recorded vote.
Why it matters: Council and staff said the change is intended to strengthen the city's reserves and provide civilian employees a modest pay adjustment while preserving funding for planned capital projects. Opponents said the same goals should be pursued without raising the tax rate, by identifying efficiencies and drawing on internal-service fund reserves.
Key facts from staff: Finance Director Sheila Lagonye told council the FY2026…
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