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Boerne staff preview FY26 budget priorities: compensation study, bond issuance, PFC funding and senior center request
Summary
City staff on July 8 previewed Boerne's fiscal year 2026 budget priorities, highlighting compensation-study results, a planned 2025 bond issuance, proposed uses for $3.5 million in Public Facilities Corporation funds and a request from the local senior center to increase city support.
City staff presented a staff-level preview of the fiscal year 2026 budget to the Boerne City Council on July 8, highlighting personnel costs, planned debt issuance tied to the 2022 voter-approved bond program, and possible use of Public Facilities Corporation (PFC) funds for community projects.
Why it matters: The city's budget sets the tax and rate framework and determines how the city maintains services, hires and retains staff, and advances capital projects. Personnel costs, benefits and the timing of bond sales influence the tax rate, debt service and service delivery.
Key budget items discussed
- Compensation and benefits: City managers told council a recently completed compensation market study found that keeping the city at the study's minimum position (the 60th percentile in the consultant's peer set previously adopted) would require approximately $680,000 in adjustments; moving to a higher target (up to the 70th percentile) could require up to $878,000. Staff also flagged a proposed health insurance renewal; an initial insurer proposal showed a 24.9% increase and staff said they were pursuing alternatives.
- Bond issuance schedule: Staff plans to issue an additional $6.5 million of the 2022 voter-approved $36 million bond authorization in the next issuance cycle and to issue the remainder ($11.5 million) in 2027, with the city's planning structured to avoid increasing the property-tax rate.
- Public Facilities Corporation (PFC) funds: Staff reported approximately $3.5 million in PFC funds and asked council for direction on using up to $3 million in the next budget year for community-benefit projects. Staff suggested priorities including downtown public parking, the Waterworks Terrace park concept and an extension of the Old Number 9 Trail; staff recommended keeping $500,000 in the PFC fund in reserve.
- Shared services / senior center: Staff said the city currently contributes $15,000 under a shared-services agreement with the local senior center; the center requested an increase and staff said they were reviewing the center's budget and membership breakdown (about 1,900 members, roughly 30% Boerne residents) to consider whether to increase the city's contribution in FY26.
Council feedback and next steps
Council members expressed general support for prioritizing first-responder pay and for retaining a competitive benefit package to support retention. Several council members also expressed support for using PFC funds on Waterworks Terrace and downtown parking improvements and asked staff to return with more detailed project and cost estimates. Staff will present a CIP update on July 22 and return with a proposed budget for formal consideration in August.
