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San Angelo council reviews FY2025–26 budget plan, projects balanced budget with marginal revenue and 5% raises
Summary
City staff presented a FY2025–26 budget that draws on $3.5 million in marginal revenue and a projected $4.4 million excess general fund balance to fund one‑time needs, operations and a proposed 5% across‑the‑board raise; the council set public hearings for Aug. 19 and adoption Sept. 2.
City of San Angelo staff outlined a proposed FY2025–26 budget on Aug. 5 that uses $3.5 million in marginal revenue and about $4.4 million in excess general fund balance to cover one‑time needs and balance recurring costs.
Tina Dierske, who led the presentation, said staff is budgeting at 100% of projected year‑end collections after reporting year‑to‑date sales‑tax growth of 3.6% and a July month increase of about 6%. She noted several state actions and exemptions that have reduced the tax roll, including recent medical‑equipment exemptions and a homestead/circuit‑breaker cap, and warned that continued downward pressure on local taxing authority could constrain service funding.
The packet presented line items including a projected $2.5 million gain in property‑tax revenue and $1.4 million in sales‑tax revenue for FY26, along with a set of one‑time funding proposals—equipment replacement, Fort Concho support and shifts in hotel‑tax support for the sports complex. Staff proposed applying $2.8 million to fund a 5% pay increase that would be applied broadly to city employees; the presentation said the $2.8 million figure represents the general‑fund cost and that implementation across enterprise funds would be considered.
Staff emphasized monitoring plans: if sales‑tax receipts weaken, managers said they would respond with hiring freezes and expenditure reductions. The council directed staff to return the budget for a first public hearing Aug. 19 and to tentatively adopt the budget and tax rate on Sept. 2.
The presentation included several enterprise‑fund overviews (water, wastewater, stormwater, airport, Costa DC and civic events), and staff said a pending water‑rate study will determine any utility rate recommendations. The budget team also highlighted a plan to move one‑time requirements from fund balance where feasible while retaining a 90‑day reserve as best practice.
The workshop was informational; no final appropriations or votes were taken at the Aug. 5 session. The council will receive the formal budget packet and a record vote on the tax rate when the item returns to the council on Aug. 19.
