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Harlingen staff present FY2025–26 budget; final tax rate pending county appraisal numbers
Summary
City staff presented a proposed FY2025–26 budget showing a projected $306,000 general fund surplus and an ending fund balance of about $30.5 million while saying the final property tax rate cannot be set until one appraisal figure is received from Cameron County.
City Manager Gabe and finance staff gave Harlingen commissioners an overview of the proposed budget for fiscal year 2025–26 on Oct. 26, presenting revenue and expenditure projections while noting the city is still awaiting one county appraisal figure needed to finalize the property tax rate.
Robert, a finance staff member presenting the slides, said certified totals were in and that the city’s beginning fund balance was about $33.3 million. He presented proposed general fund revenues of $67.58 million and expenditures of $67.27 million, leaving a roughly $306,000 surplus before fund-balance deductions. "We are now at 306,000 in our revenues over expenditures," Robert said during the presentation.
Gabe told commissioners the team had received four of five required appraisal numbers from the county and expected the final figure within days. "We did get 4 out of the 5 numbers just now … we are just missing 1 more number from the county and then that will be it," he said, adding that a follow-up workshop or a meeting at the regular commission session would be scheduled once the last number arrived.
Why it matters: commissioners and staff said the missing number prevents the city from setting a final tax rate. The commission agreed to reconvene to set the rate after the county figure is received.
Supporting details: the presentation listed one-time fund-balance deductions of about $3.03 million (placeholders for items such as fire trucks among them), showing a projected ending general fund balance of about $30.53 million on Sept. 30, 2026. Staff noted some restricted balances (for example funds reserved for two fire trucks totaling $2.4 million) were placeholders and would not necessarily be spent next fiscal year unless the commission later authorized expenditures.
Additional revenue notes: staff highlighted that sales-tax collections have grown relative to property-tax revenue in recent years because of new retail and restaurants. The proposed overall budget across all funds showed projected revenues and transfers of roughly $114.0 million against expenditures of about $113.0 million, producing a modest $2.5 million net surplus across all funds.
Next steps: Gabe and Robert said they would incorporate the remaining appraisal number, update the PowerPoint and circulate it to commissioners as soon as the county data were available, and convene a meeting to set a tax rate.
