Lancaster manager presents balanced FY2024–25 budget, council acknowledges tax documents

City Manager Opal presented Lancaster’s proposed fiscal year 2024–25 budget at a special work session on Aug. 5, reporting certified property values rose to $6.5 billion — a $1.3 billion increase over the prior year — and proposing a city tax rate of 0.604606, which she said is below the voter-approval rate of 0.605016.

Opal told the council the administration prepared the budget using certified appraisal values delivered July 25 rather than estimates and emphasized the plan relies on sustainable revenue sources rather than volatile, consumer-driven receipts. "We are proposing a reduction in the tax rate...to 0.604606," Opal said during the presentation.

The nut graf: the increase in certified values allows Lancaster to lower its proposed tax rate while funding operating priorities, Opal said. The proposed all-funds budget shows $97,047,957 in revenues and $94,000,009 in expenditures, projecting an all‑funds surplus of about $2,141,009.68 if current values hold.

Opal highlighted priorities funded in the proposal: continued infrastructure investment (Cedardale Road phase 2 and Alley of Oak Bluff were cited as near completion), additions to public‑safety staffing and inspection capacity, and modest program expansions. She also proposed personnel changes including a 3% across‑the‑board pay increase for general government and public‑safety employees, an incentive stipend for certified fleet technicians and an arborist, five new firefighters effective Oct. 1 and a fire inspector for the fire marshal’s office, and a special events coordinator to support tourism and citywide programming.

Opal said sales tax collections are exceeding the budgeted figure and make up roughly 25% of the general fund; she described a forecast that could allow one‑time capital investments from excess sales-tax receipts. She also noted $117 million of certified value remains under protest with a potential additional $82 million if protests are resolved in petitioners' favor; those amounts are not included in the revenue projections.

During the presentation Opal reviewed Lancaster’s revenue mix and fund policies, including a target fund balance of 18% of expenditures. She explained enterprise funds (airport, golf, sanitation) and said a utility-rate study and the water/wastewater/stormwater fund presentation were scheduled for Aug. 12. A town-hall meeting at the Lancaster Recreation Center is set for Aug. 15; public hearings on the budget and tax rate begin Sept. 16 with final consideration on Sept. 23.

After the presentation the council praised staff for the work. One council member said, "I want to commend you and your staff," and another called the budget "balanced" and encouraged continued progress. The consent agenda items — a proposed budget calendar and ratification of a notice of intent to issue certificates of obligation for infrastructure — were read by City Secretary Reyna and approved in a single motion. The council also moved to approve action item 3, acknowledging receipt of the tax‑calculation documents certified by the Dallas Central Appraisal District; the motion carried after council members responded "aye."

The next steps laid out by staff include the Aug. 12 work session on utility and stormwater funds, the Aug. 15 town hall, an Aug. 19 work session on the master‑fee schedule, and the public hearings in September. The record vote acknowledging the proposed tax rate is a procedural step required under Texas law; final adoption of the tax rate and budget remains scheduled for council consideration in September.