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Abilene managers present bare‑bones FY2026 budget; council moves to add water infrastructure priority
Summary
City Manager Robert Hanna presented a conservative FY2026 preliminary budget that assumes statutory tax increments and modest sales tax growth; the council agreed to add water infrastructure to its top priorities list and discussed one‑time reductions in transfers to cover near‑term personnel costs.
City Manager Robert Hanna presented a preliminary, conservative FY2026 budget at the workshop, emphasizing the need for an early conversation about council priorities and near‑term adjustments to fund personnel and operating needs.
Key assumptions and constraints: Staff said the budget assumes the statutory 3.5% property tax increment (the council may levy less), projects 1% sales tax growth, and uses conservative revenue assumptions because appraisal district values and some revenue drivers remain uncertain. FY2025 was described as a $132 million revenue year with reserves above minimum by about $792,000; staff reported a continuing target of roughly a 90‑day general fund reserve.
Personnel, service and transfers: Cost pressures include step increases for police and fire, full staffing of a new fire station and two recreation facilities, and a roughly $1.9 million personnel increase for staffing the new Abilene Heritage Square library. Staff proposed temporary reductions in multiple transfers to the Minor Improvement Program (MIP) and several enterprise funds — for example lowering the MIP sales‑tax transfer from 5% toward 3.34% for one year — to cover FY26 personnel costs, and reducing certain general fund transfers to self‑insurance and transit where those funds have stronger balances.
Council priorities: During the retreat discussion councilors proposed and then agreed to move “water infrastructure and sources” onto the council’s list of priorities; in turn staff recommended shifting “efficient and cost‑effective government” into the city’s strategic goals rather than the top priorities list. Council members said the priorities list should be actionable and limited to five items.
Next steps: Staff said this presentation is a preliminary snapshot and that the budget will be refined when clearer revenue figures arrive; the formal budget process, public hearings and adoption will follow the statutory calendar. No formal budget adoption occurred at the workshop.
