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Victoria council adopts $255.1 million budget and sets 2025 property tax rate at $0.479
Summary
On first reading the Victoria City Council approved a $255,078,343 fiscal 2025–26 budget and set the 2025 property tax rate at $0.479 per $100 after debate and a failed amendment to raise the rate to 0.482; staff said the budget reflects a $1.2 million bond‑redemption program and modest revenue and hiring adjustments.
The Victoria City Council approved on first reading a $255,078,343 budget for fiscal year 2025–26 and set the 2025 property tax rate at $0.479 per $100 of valuation after a lengthy debate on how to balance services and future needs.
City Manager Garza, presenting the proposal, told the council the packet reflects changes since the August draft, including a bond redemption program represented as two transactions totaling $1,200,000 and adjustments that reduce projected revenue by roughly $161,000 while trimming just over $100,000 in expenditures and delaying some new hires. “Keep in mind that this is just the first reading,” Garza said as he walked the council through the figures.
The tax rate decision followed a contested exchange. A councilmember (Seat 8) moved to amend the motion to set the rate at 0.482 — the voter‑approval rate favored by some members — arguing that pending state action (SB 10) and planned pay increases for public safety and other positions could constrain future budgets. “Well, if SB 10 passes it will mean that future the best it could be is 2.5, but it could be 1%,” the councilmember said, arguing for a larger cushion for the city. Supporters of a lower rate said the proposed budget already meets service needs without maxing out the tax burden on residents.
After the amendment failed under procedural and supermajority requirements, the original motion to adopt the budget and set the tax rate at 0.479 passed. The chair noted one councilmember voted in opposition to the final tax‑rate motion.
Staff told the council the $255.1 million figure on the agenda reflects both the revenue and expenditure impacts of the bond‑redemption transactions and the conservative approach to sales tax and ambulance billing projections. Garza said the city may present additional adjustments on second reading; he also plans to propose on Monday to the compensation subcommittee increased pay for utility‑centric positions of about $200,000 to improve recruitment and retention.
What the council approved tonight is a first reading; further amendment and a second reading are possible at next week’s special meeting on the tax rate and budget timeline. The council recessed into executive session at 6:00 p.m. and will return to open session afterward for any final actions.
