Victoria City unveils $254 million preliminary FY‑26 budget, emphasizes public safety pay increases and community center financing

Victoria City Manager Jesus Garza presented the city—s preliminary fiscal‑year 2026 budget on Friday, proposing $254 million in expenditures and $243 million in revenue while continuing a conservative approach that draws about $11 million from excess fund balance for one‑time needs.

The budget package Garza previewed emphasizes pay raises for public safety, a large capital improvement program that includes a $28 million allocation for the Community Center expansion, and continued reliance on grant and bond proceeds for major projects. Garza said the plan is intentionally conservative to preserve reserves and give the city flexibility if economic conditions worsen.

Garza told the council the net taxable appraised value for property appears to be flat, and he reminded members that state law commonly referred to as SB 2 limits revenue growth from existing property values to 3.5 percent; capturing that incremental revenue would require a modest tax‑rate increase if certified values remain flat. "If we decide not to take that penny," he said, "we would have to have conversations about cutting something."

Most of the year‑to‑year expenditure increase is concentrated in three areas: capital projects, transfers for major facilities and vehicles, and a historic personnel pay program. Garza said the proposed pay program totals about $3.8 million; roughly $3.6 million would be recurring and $181,000 would be a one‑time stipend. The plan focuses increases on police, fire, public works and solid waste, and…