Copperas Cove workshop: officials outline $2.1 million general‑fund shortfall, weigh pay adjustments, hiring holds and expedited VA clinic review

At a May 19 workshop, City Manager Ryan and Budget Director Ariana Beckman told the Copperas Cove City Council that the draft FY2026–27 budget includes an estimated $2.1 million general‑fund shortfall and presented a set of tradeoffs to close the gap, including pay adjustments, vacancy‑management and timing of debt issuance.

"That means there's a $2.1 million deficit in the information that we've worked through so far," City Manager Ryan said while walking the council through fund‑balance and revenue estimates. Staff reported an unreserved undesignated beginning general‑fund balance of $12.5 million, projected revenues of about $24.7 million and expenditures just under $27 million, leaving an anticipated ending fund balance of $10.3 million under current assumptions.

The shortfall stems in part from how the city must calculate property‑tax revenue under recent state law changes and from rising debt service tied to capital projects. Ryan said staff used a conservative planning assumption of an additional $500,000 in property‑tax revenue in one scenario (reducing the deficit to roughly $1.5 million), but final figures depend on estimated certified values being supplied by the county tax assessor/collector, which staff said could be delayed by a county runoff election.

Staff framed a menu of options to narrow the deficit. Those included: retaining a 3% cost‑of‑living adjustment (COLA) for non‑public‑safety personnel (also modeled at 2% and 1%), pursuing market adjustments for police and fire that staff estimated could total about $1 million, and tightening hiring‑timelines to capture vacancy savings (in staff models, holding vacant positions for four weeks rather than three for up to 10 months). Ryan warned the vacancy policy would slow hiring and could affect services such as parks maintenance and human‑resources responsiveness.

On compensation, staff said their historical practice is to pursue public‑safety market adjustments toward a target (previously about 95% of market), but resources likely will not permit full attainment next year. "We have those numbers right at a million dollars for both police and fire," Ryan said. The staff presentation also noted that shifting the city’s TMRS contribution rate (the municipal retirement system) would affect employees’ take‑home pay and that council might consider COLA as partial mitigation.

Budget line items and one‑time costs discussed included a previously approved municipal‑judge pay contract, a proposed full‑time assistant city‑manager position for public services (with a general‑fund cost share of about $45,000), and a reported $250,000 grant to support police mental‑health specialists. For technology and compliance, staff flagged a coming ADA website standard change and recommended an annual backup/cybersecurity solution to mitigate ransomware risk, warning that similar compliance efforts in neighboring jurisdictions have required six‑figure investments.

Staff also described development‑services items tied to an upcoming U.S. Department of Veterans Affairs clinic: permit and expedited‑review fees connected to that project were estimated at $154,000, and staff proposed third‑party plan‑review and inspection support so the city could meet expedited timelines without degrading service to other applicants. Ryan said an additional development‑services manager position would help coordinate increasing commercial development, citing a potential 100,000‑square‑foot retail buildout as an example of new demand.

Councilmembers asked staff for additional COLA scenarios (including intermediate options), voiced support for public‑safety market adjustments, and emphasized the VA clinic’s potential long‑term tax‑base benefits. Multiple councilmembers directed staff to wait for the county tax‑assessor’s estimated tax‑rate numbers before taking final direction; Ryan said staff will return for further discussion at a June 2 meeting and plan to present the proposed budget on June 16.

No motions or votes were taken at the workshop; staff requested policy direction and additional data to finalize the proposal. The workshop adjourned at 6:00 p.m.; the regular council meeting was scheduled to begin at 6:10 p.m.