Helotes council keeps property tax rate at 31 cents after extended budget and pay discussions

Helotes City Council voted on Aug. 14 to keep the city's ad valorem property tax rate at $0.31 per $100 of valuation after an extended presentation and debate about the proposed 2026 budget, staffing shortages, and how much of the city's reserves to use for raises and one-time capital purchases.

The council first considered a proposed tax rate of 0.309799, the city's calculated no-new-revenue rate; a roll-call vote on that proposed rate failed. After further discussion about using reserves to address pay disparities and capital needs, the council approved a motion to leave the rate at 0.31 by a 4-1 vote; Council member Sanders cast the lone dissent.

The vote matters because property taxes supply about 40% of Helotes' revenue and the numbers discussed determine whether the city must hold additional public hearings. City staff told the council the presented 0.309799 figure equals the no-new-revenue rate under Chapter 26 of the Texas Property Code and therefore would not require a public hearing; exceeding the voter-approval threshold would trigger a different process.

Daniel Rodriguez, the city's finance director, walked the council through the tax-rate mechanics and multiple constraints in state law (the no-new-revenue rate, the…