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Aransas Pass officials preview 2025–26 budget with $2.5 million general‑fund shortfall; tax note proposed for capital projects
Summary
City staff presented a draft 2025–26 budget showing roughly $2.5 million in general‑fund deficit, proposed a short‑term tax note for capital projects, and circulated capital requests and six proposed personnel items for council review.
City Manager Mary Vega and Finance Director Sandra Garcia presented Aransas Pass—ouncil members with an early draft of the city—udget for fiscal 2025–26 and a list of capital requests, warning that the general‑fund currently shows an estimated shortfall of about $2,500,000.
"At this time, where the budget stands right now, there is a budget deficit that stands at about $2,500,000," City Manager Mary Vega said.
Finance Director Sandra Garcia provided numerical detail. She said the city—stimates anticipated revenues of $27,623,873 against anticipated expenditures of roughly $33,078,586, leaving the general fund with an estimated ending fund balance of about $4.4 million, or roughly 25 percent of operating expenses. Garcia noted the city—und balance policy aims for 40 percent for coastal municipalities.
Garcia and Vega described capital requests included in the draft: roughly $2.7 million of requested general‑fund capital items; about $1.5 million for water and sewer; approximately $350,000 for improvements at the aquatic center; and roughly $288,000 for Civic Center upgrades. Vega said the draft does not include cost‑of‑living adjustments for staff at this time and that department‑level meetings are planned to identify additional reductions.
Vega told the council she plans to recommend a short‑term tax note to fund capital needs that the budget cannot otherwise support. "I'm gonna be recommending a a tax note this year for capital projects," Vega said, adding that the city—ould structure repayment terms to ease near‑term debt service costs.
Vega presented a proposed tax rate of 0.733166, a slight decrease from the current 0.734997. She said the change represents a reduction of about 0.2727 percent (roughly two‑tenths of a cent). Garcia added that one cent of property tax in Aransas Pass generates about $105,005.04 for the city.
Key calendar items provided to council: a budget workshop was scheduled for Aug. 21; the council is expected to set the tax‑rate public hearing at the Aug. 18 meeting; and adoption of the budget and tax rate was scheduled for Sept. 15.
Why it matters: The draft shows a material operating shortfall and a list of capital requests that, if funded, would increase borrowing; council members asked staff for more detail and will hold department review sessions before finalizing the tax rate and budget.
Ending: Staff will return with department‑level proposals and recommended cuts at upcoming workshops; council members asked for a detailed debt schedule and a list of bonds retiring in coming years.
