Bandera council adopts FY2025–26 budget, raises tax rate and approves 5% utility increase

The City of Bandera City Council adopted the fiscal year 2025–26 budget and related tax and utility measures at its Aug. 26 regular meeting.

Council adopted Ordinance No. 454, the FY2025–26 budget, which the ordinance cover page states will raise $150,387.12 in additional property tax revenue compared with last year (a 20.36% increase as shown on the ordinance cover). The council then set the property tax rate at 0.569939 per $100 of assessed value by adopting Ordinance No. 455; the record vote on the tax rate was 4–0. The council also approved Resolution No. 2025‑029 ratifying the tax rate.

Why it matters: The budget and tax-rate actions establish the city’s revenue assumptions and the combination of the adopted budget and the levied tax rate determine how much property-tax revenue the city will collect for the coming fiscal year.

Budget and tax details: The ordinance materials read during the meeting list the new property tax rate at 0.569939 per $100 of value and show component figures used in the staff cover page: a no‑new‑revenue rate of 0.475618 per $100, a maintenance-and-operations component of 0.459681 per $100 and a debt rate of 0.110258 per $100. The materials show total municipal debt obligations of $171,945.

Utility rates and fees: The council also approved a 5% across‑the‑board increase in utility rates for the 2025–26 budget year and adopted a fee schedule that removes a $2 monthly street fee from utility bills beginning Oct. 1. Council debated whether to table the utility-rate adoption while staff gathered contract price details for trash collection, but voted to adopt the rates and asked staff to return with a more detailed review of trash charges and the Republic contract at the next meeting.

Staff and public comments: Allison, city finance staff, told the council, “The budget you have in front of you is the same budget you’ve had at the last workshop. No changes were made.” During discussion of the solid‑waste charges, council members and members of the public questioned whether a smaller tote or biweekly pickup would lower costs; staff reported that Republic’s route/driver structure makes a smaller tote cost the same under the current contract and that biweekly pickup is not part of the existing agreement.

Votes at a glance: Ordinance No. 454 (adopt FY2025–26 budget) — motion by Brett Hicks, second by Tony Battle; vote 4–0, passed. Ordinance No. 455 (levy property tax rate 0.569939 per $100) — motion by Brett Hicks, second by Jeff Flowers; vote 4–0, passed. Resolution No. 2025‑029 (ratify property tax rate) — motion by Tony Battle, second by Jeff Flowers; vote 4–0, passed. Utility rates (5% increase) — motion by Jeff Flowers, second by Brett Hicks; vote 4–0, passed. Fee schedule (remove $2 street fee) — motion by Tony Battle, second by Jeff Flowers; vote 4–0, passed.

Next steps: Staff will review Republic’s trash contract and bring detailed cost and contract information back to the council at the next meeting; council members indicated they may amend the adopted budget later in the fiscal year if new information requires it.

Ending note: Council members present voted unanimously on the budget, tax-rate and utility‑rate measures; Council Member Lynn Palmer was absent.