Cibolo council adopts FY26 budget, approves 2% COLA and raises property tax rate to 0.5226

Cibolo — The Cibolo City Council on Tuesday adopted the city’s fiscal year 2026 budget, approved a 2% cost-of-living adjustment (COLA) for employees and set the city’s ad valorem tax rate at 0.5226 (52.26 cents per $100 of assessed value).

Council passed the budget package after public hearings on the proposed budget and the tax rate. The council-approved budget funds $72,080,000 in combined funds and keeps the general fund at about $24.9 million; the council also approved a 2% increase in wages effective in January 2026. The tax-rate vote was 5–2.

Why it matters: City officials said the measures are intended to preserve service levels — particularly public safety and public works — after Cibolo’s taxable values fell, and to help the city retain employees amid regional recruitment pressures.

City staff presented an all-funds overview and a general fund summary, and described changes since earlier budget briefings. The total combined funds figure shown to council was $72,080,000 after a late $49,000 grant increased special revenue fund revenues and expenses. City staff said the general fund’s ending balance is projected at about $5.9 million, roughly 27.4% of recurring expenses, and described the general fund as "structurally balanced and financially sustainable." The budget includes targeted capital spending on parks, streets, utilities and a planned public safety facility and animal services facility over the next four years.

Anna Miranda, a city staff presenter, summarized staff recommendations and the sequence of workshops and meetings leading to the proposal, noting six public budget meetings and one town hall held during the process. Miranda said the budget includes investments in employee professional development and a "leadership academy" created in-house, and that most of the year‑over‑year increase is concentrated in public safety, public works and administration.

Council and staff repeatedly framed the budget around two constraints: reduced residential assessed values and continuing infrastructure needs. The city reported that the average taxable home value decreased about 3.8%, from $350,000 to $337,000, and that property taxes provide roughly 51% of general fund revenue. Staff calculated a no‑new‑revenue tax rate (NNR) of 0.5005 (50.05¢) and a voter‑approval tax rate of 0.5226 (52.26¢); the council voted to adopt the latter. Staff said the proposed maintenance and operations portion of the rate is 33.81¢ and the debt service portion is 18.45¢.

Public comment included opposition to the tax rate. Resident Pam Harrison urged the council "not to... pass this tax increase," arguing that higher water and garbage costs already strain households. Harrison told council, "This is gonna devastate many, many families."

City staff responded that the budget does not add new staff positions — it is a "lean budget" — but that pay adjustments are needed to retain current employees. A staff presenter said the general fund is heavily people-based (about 70% of expenses are salaries and benefits) and noted past voter‑approved measures supporting public safety. Council members who supported the package said failing to adopt the proposed rate would require deeper cuts to services and staff, or returning to council later with line‑item reductions to match a lower tax levy.

On utility and rate items, staff said the FY26 budget includes a 2% pass‑through wastewater rate increase tied to CCMA and a $1,000,000 set‑aside for future water acquisition. Staff estimated the proposed 2% wastewater rate adjustment would raise the average city customer's monthly bill by about $0.71.

Votes at a glance - Approve 2% COLA (agenda item 7a): Passed (tally reported as 5 yes, 1 no, 1 recused). The council separated this vote so a member with a conflict could recuse. Staff noted the COLA and market adjustments take effect in January 2026. - Approve ordinance adopting FY26 budget (agenda item 8a): Motion made and seconded; outcome approved (vote not specified in transcript). - Resolution ratifying property tax increase as required by Local Government Code 102.007(c): Passed 5–2. - Ordinance setting the ad valorem tax rate for tax year 2025 at 0.5226 (agenda item 8b): Passed by roll call, 5–2.

Council comments reflected the tradeoffs: supporters said the rate preserves staffing and prevents deeper service cuts, while dissenting members questioned whether pay increases were appropriate given lower property values and sought more comparative market data from neighboring cities. One council member said requested midpoint comparisons from neighboring jurisdictions slipped and would be provided after the meeting.

Implementation and next steps: Staff said market adjustments approved in the budget will take effect in January; they also said if council later adopts a lower tax rate than 0.5226 the city will return with cuts to bring the budget into alignment with the reduced revenue. Staff indicated they will present additional compensation analysis and comparative midpoint data to council at a future meeting.

Context and notable budget items: The budget includes increased annual street maintenance funding (FY26: $750,000, with a plan to reach $1,000,000 annually over the next four years), new wastewater CCN service area work tied to future development, EDC funding for grants and a parks master plan, and capital set‑asides including $1,000,000 for water acquisition and $100,000 for a water consultant. Staff said the Economic Development Corporation (EDC) is funded by a quarter‑cent sales tax approved by voters and that the EDC budget includes $250,000 for strategic plan implementation and $250,000 for a parks master plan.

Closing: After final votes the council adjourned. City staff thanked council for months of workshops and public engagement that led to the adopted FY26 budget package.