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Crockett council outlines FY2026 budget priorities, directs split of new debt onto property tax and water utility bills
Summary
City staff presented draft FY2026 budget estimates and capital requests; council directed that debt service for police and fire be paid from property tax debt service while debt tied to water/wastewater projects be repaid via water utility consumption charges and asked staff to return with options.
City staff presented draft figures and a budget update at the Crockett City Council meeting on July 21, outlining increases in insurance, cyber liability and capital needs and seeking council direction on how to allocate repayment of recently issued debt.
Staff said the appraisal‑district preliminary values showed increased property values driven by new construction, and presented draft estimated taxable values for 2024 and 2025. The presenter warned that some insurance categories rose sharply because of existing lawsuits, and that cyber security risks and ransom attacks have created new insurance and training demands. “We have an increase of about $23,000 for our insurance,” staff said, citing a larger rise in general liability and errors & omissions driven by ongoing litigation.
On capital and one‑time requests, the city has remaining American Rescue Plan Act (ARPA) funds of roughly $252,000 and listed planned uses including gateway signs (approximately $61,050), a fire station bay floor replacement (estimate discussed) and Civic Center repairs. Staff also flagged a larger police‑station addition estimate of roughly $637,000 and the need to consider multi‑year financing for major items such as police radios, additional public safety personnel, and water/wastewater infrastructure.
A central budget question was how to allocate repayment of a 2024 tax and revenue certificate (debt) that funded police vehicles, a fire engine and a wastewater/water project. Council wrestled with whether to put repayment entirely on property taxes, entirely on utility bills, or split the cost. Staff presented rough estimates for homeowner impact: if all debt were placed on property tax, the average home would see about $79 per year (roughly $6.50 per month); if placed on water and sewer customers it would be roughly $13 per month per customer, with options to allocate by consumption or a flat base rate.
After discussion, a councilmember moved — and the council approved — a directive to split debt repayment: debt tied to police and fire (the property‑focused items) will be paid from property tax debt service; the other debt items tied to water and wastewater infrastructure will be repaid through water utility charges and loaded on a consumption basis. The council instructed staff to present two or three repayment options and the detailed numbers for the next meeting.
Council members also debated water supply strategy. Staff described work to drill additional wells and noted the city has leveraged grants and low‑interest loans from the Texas Water Development Board; council asked staff to return with options for lake water, well investments and potential costs to assume or rehabilitate regional supply infrastructure if that becomes a strategic priority.
Staff indicated there will be an August 4 meeting to review a draft budget after the appraisal district issues certified values. Council members asked that staff pursue options that preserve a healthy reserve while laying out repayment scenarios and costs for capital requests.
No formal adoption of the FY2026 budget occurred; the vote at the meeting approved the council direction on debt allocation and requested further analysis and options to be returned at the next budget meeting.
