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Cibolo staff to prepare ordinance for November vote on reauthorizing quarter‑cent street tax
Summary
Council directed staff to prepare an ordinance calling a November 2026 special election to reauthorize the quarter‑cent street maintenance sales tax that funds road repairs and partial debt service; staff estimated the tax will generate roughly $1.5 million in FY27.
CIBOLO — The Cibolo City Council on June 9 instructed staff to prepare an ordinance to place a quarter‑cent sales tax reauthorization for street maintenance on the November 2026 ballot.
Finance staff explained the special sales tax is authorized under Texas Tax Code §327.004, can be adopted in increments up to a quarter‑cent and must be reauthorized every four years. Miss Miranda told council the street maintenance portion generates roughly $1.5 million in fiscal year 2027 and is restricted to street maintenance, including payments on bonds issued for major street rehabilitation.
Miss Miranda noted the tax is part of the city’s local sales tax and that if the street portion is not reauthorized, the city’s general fund would absorb ongoing street‑maintenance costs. She also explained that Guadalupe County and other jurisdictions impose local sales taxes as part of the local two‑cent tax; the street‑maintenance quarter‑cent is the city’s portion that requires voter reauthorization.
Council discussion centered on timing and costs of placing the item on the November ballot. Staff said the election must be called in mid‑July to meet county deadlines; initial direction to prepare the ordinance was approved and staff plans to return to council at the first July meeting with an ordinance to call the election.
Why it matters: The quarter‑cent sales tax provides a dedicated funding source for street maintenance and reduces pressure on property tax revenue; reauthorization determines whether that dedicated revenue stream continues after the current expiration on March 31, 2027.
What’s next: Staff will draft the ordinance for council consideration at the July meeting and coordinate logistics with Guadalupe County for the November election.
