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Victoria council adopts $255.3 million budget, sets 2025 tax rate at 0.479
Summary
After a presentation and discussion, the Victoria City Council adopted a fiscal 2026 budget ordinance and set the 2025 property tax rate at 0.479 per $100 valuation; council also ratified the property tax. The budget includes a $207,000 utility pay recommendation, a $79.25 million CIP, and a historic investment in fleet.
The Victoria City Council adopted an ordinance approving the fiscal-year 2026 budget and set the 2025 tax rate at 0.479 per $100 of property valuation during a specially called meeting on Sept. 9.
City Manager Garza presented a high-level overview of the $255,286,194 budget on second and third reading and outlined changes since the initial proposal, including the addition of a $207,000 pay recommendation for utility positions and a CIP program of roughly $79.25 million that includes investments in residential streets, drainage and the community center project.
Why it matters: The adopted budget and tax rate support pay increases, one-time capital projects and a substantial vehicle and fleet investment. City officials said the tax rate decision was driven in part by lower appraised values and a desire to preserve services while maintaining reserves.
Key points from the presentation and council action: - Total adopted budget: The ordinance on the agenda listed a total amount of $255,286,194 for the fiscal year beginning Oct. 1, 2025. - Pay program and staffing: The pay program was described as a historic investment, with approximately $5.5 million in the pay program overall and about 70% of that portion directed to public safety; the utility-targeted $207,000 was presented as an augmentation to retain operators and address vacancies. - Capital improvements: The proposed CIP for FY26 is about $79.25 million, including approximately $17 million for residential streets, $9 million for drainage and $8 million for thoroughfare streets; the community center project and other facility investments were highlighted. - Fleet investments: The budget added more than $6 million for public-safety and service vehicles, including police vehicles, ambulances and solid-waste trucks. - Revenue and reserves: Staff explained the budget uses a mix of recurring revenue and about $12.5 million in one-time fund balance for one-time expenditures; the city projected ending reserves of roughly $20 million and minimum reserves of about $16.7 million.
Votes at a glance: - D1 (Consent) — Adoption of minutes for the regular meeting held 09/02/2025: motion made and seconded; passed on voice vote. - E1 — Ordinance approving and adopting the fiscal-year 2026 budget in the total amount of $255,286,194 (second and third reading): a council member moved to approve the budget with the amendment recommended by staff; the motion passed on voice vote. - E2 — Resolution ratifying the property tax: moved, seconded and adopted on voice vote. - E3 — Ordinance setting the 2025 tax rate at 0.479 per $100 valuation (second and third reading): moved and seconded; adopted on voice vote. Council commentary noted the decision followed a difficult budget year and lower valuations.
Attribution and process notes: The motions recorded in the meeting were moved and seconded as part of the council’s regular procedure; individual roll-call tallies were not recorded in the audible record provided. Staff identified that the $207,000 utility pay recommendation will be funded from utility working capital and that recurring revenue coverage will be examined in the forthcoming utility rate study.
Ending: Councilors thanked staff for the work in navigating an unusually complicated valuation and budget year and moved on to other agenda items. The budget becomes effective Oct. 1, 2025.
