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Council hears FY2027 budget forecast and schedules workshops; staff warns of tightening reserves in 2028
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Summary
City staff presented a tentative FY2027 budget calendar, reserve projections and priorities. Staff said the city meets current reserve targets but flagged potential strain by 2028 if planned CIP and capital projects proceed; council scheduled workshops and discussed police step-plan and downtown priorities.
City staff presented an overview of the proposed FY2027 budget calendar and high-level priorities at the April 21 Nacogdoches City Council meeting and urged the council to provide early direction on key objectives.
Addressing the council, the staff presenter (identified in the meeting as Rick) reviewed primary funds, sales-tax trends and reserve metrics and said the city is "meeting the 25% reserve requirement" at present but that several planned capital projects could begin to draw down reserves by 2028. He noted approximately "$2,700,000 of capital and CIP items" tied to the current plan and cautioned that continuing to add capital obligations without new revenues would tighten the city's options in later years.
The presentation covered workforce and retention: turnover had previously been above 20% in some departments but staff reported progress on filling positions and on recruitment in police and fire. Councilmembers pressed for a stronger police step plan; staff said the existing step program has been adjusted in recent budgets and that additional tweaks would require revenue discussion. "You have to have revenue before you can do anything," the presenter said, noting that raises become ongoing costs.
Councilmember Kathleen said she wanted transparent, public discussion and asked that the budget calendar and workshop materials be published; the presenter agreed the materials would be included in public documents and recommended a May budget workshop (the presenters referenced a May 12 working date as a likely session for deeper discussion).
Council discussed downtown and tourism priorities, including Stone Fort and collaborating with Stephen F. Austin State University on downtown implementation. Staff said some items could be handled through the Type B or through grant opportunities, and suggested bringing more detailed analyses back to council during budget workshops.
No formal budget vote occurred; staff will bring refined projections, departmental requests and workshop materials back to council as the next steps in the FY2027 process.
Key next steps: staff to publish budget calendar and materials, hold a May workshop for deeper review of general and utility funds, and return to council with refined revenue and CIP trade-offs.
