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Pflugerville council hears FY 2026 budget presentation, staff proposes modest tax‑rate decrease and $30M debt authorization
Summary
City staff presented the proposed fiscal year 2026 budget, showing a small proposed tax‑rate decrease, a $30 million tentative certificate‑of‑obligation issuance under consideration for CIP needs, and staff recommendations to use fund balance and PCDC dollars to close service‑level gaps. Council asked for more CIP prioritization and quarterly monitoring.
City finance staff presented the proposed fiscal year 2026 budget during a public hearing on Aug. 26, outlining revenue assumptions, reserves and capital plans and answering council questions about debt and service levels.
Tracy Waldron, identified in the presentation as finance support and finance director, said staff proposes a decrease in the city’s overall tax‑rate calculation (presented as 0.535) and is planning no new debt in the debt rate for FY26 while contemplating a maximum $30 million certificate‑of‑obligation issuance in 2026 as part of the five‑year capital improvement plan. Staff showed a projected $800,000 increase in recurring revenues and about $1.4 million in new expenditures that leave an estimated fund balance of roughly $19.5 million — about 30% of reserves — above the city’s 25% policy target.
Waldron said the budget assumes conservative 3% sales‑tax growth and includes adjustments to fees, a 3% cost‑of‑living salary increase and a 5% health‑insurance estimate. On the expense side, the proposed budget reduces 13 general‑fund positions while increasing utility‑fund positions; the presentation also included a proposed $670,000 transfer to establish a vehicle, equipment and replacement fund to begin moving away from a lease program.
Councilmembers pressed staff on long‑range debt projections, asking for clarity on the debt‑service schedule and the timing and necessity of any new issuance. Staff noted the 30‑million figure is a maximum amount in the CIP process and that the exact issuance schedule and structure will return to council with more detail. Multiple members asked for a dedicated CIP work session to prioritize projects and for clearer reporting on maintenance and operations costs tied to new capital projects.
Public comment during the hearing touched on transportation and affordability issues. Jonathan Kaufman urged council to pull a separate code‑rewrite contract off the consent agenda and accelerate targeted zoning fixes to address lot‑size minimums, setbacks and parking rules, saying some smaller changes could advance affordable housing objectives sooner than a full year‑long rewrite. Council and staff acknowledged the diagnostic work already underway for the Unified Development Code and said targeted amendments could be prioritized if council so directs.
Staff said adoption is scheduled for the Sept. 9 meeting, and the tax‑rate and master fee schedule will return for formal action at that time. Council asked staff to provide more frequent reports (quarterly) on revenues and selected fee categories and to produce a CIP‑prioritization dashboard to better track project timing and completion.
