Copperas Cove council reviews $76.8 million proposed budget, schedules July 30 public hearing

Copperas Cove’s city council reviewed the city manager’s proposed fiscal year 2026–27 budget of $76.8 million at a June 16 workshop, with City Manager Ryan Havlaw filing the proposal with the city secretary and presenting fund-by-fund projections, staffing requests and key schedule dates.

"It's a $76.8 million budget," Havlaw said, describing the document the city submitted to meet state filing requirements and outlining a strict review timeline that includes workshops on June 23 and 25, a public hearing on July 30 and a planned adoption on Aug. 18.

The presentation framed the budget around several priorities and constraints. Havlaw said 56% of proposed expenditures are tied to public safety (police and fire) and that salary and benefits account for about 77% of total expenditures, underpinning pay-related proposals. Council was told the proposed plan includes market adjustments for public safety (about $52,000 for police and $477,000 for fire) and a 3% cost-of-living adjustment for non-public-safety employees, which Havlaw estimated would cost roughly $200,000.

Havlaw broke down major funds: the general fund begins with a projected $12.5 million balance, with anticipated general-fund revenues of about $26.3 million and expenditures just over $27 million (leaving an ending balance near $11.7 million under the presented assumptions). The water and sewer fund showed a $10.4 million beginning balance, projected revenues rising to roughly $24.4 million and expenditures to about $25.2 million, for an ending balance near $9.7 million; those projections are tied to a previously issued utility-rate study the city has posted online.

Havlaw highlighted deferred infrastructure needs for water, sewer, drainage and streets and said the capital-improvement plan and rate study inform proposed rate changes to stabilize long-term service levels. He noted a capacity-expansion project under way with the city’s water supplier, Bell County WCID No. 1.

On revenues, the proposed budget assumes a modest 3% increase in sales-tax receipts and shows property-tax and sales-tax estimates that together imply an estimated tax rate near $0.71 per $100 of taxable value. At the workshop Mayor Yansy asked that charts displaying the calculated rate be clearly labeled as "estimated." Havlaw confirmed the presentation will be adjusted to reflect that clarification in future slides.

The presentation flagged a growing fiscal effect from the 100% disabled-veterans property-tax exemption: Havlaw said the exemption now represents approaching $4 million in exempted general-fund value while the state's reimbursement remains far smaller (he cited an expected reimbursement payment of about $339,000). That gap was presented as a material pressure on general-fund revenues.

Havlaw said the proposed budget includes a previously approved economic-development 380 agreement tied to a Veterans Affairs clinic; the city expects the fiscal impacts of that incentive to begin in the next fiscal year when payments commence. The budget also builds in a one-year third-party plan review and inspection budget to support anticipated commercial development tied to the clinic and other projects.

New personnel requests in the proposal include an assistant city manager position (total annual cost presented at about $276,000, with roughly $240,000 reimbursed from other funds), a development services manager ($119,000), and three water-utility positions (an operator, an administrative assistant and a senior backflow technician). Havlaw also proposed a $95,000 information-technology backup solution as a one-time capital need.

On balancing options, Havlaw reviewed previously discussed measures: adjusting the tax rate, using fund balance, excluding market and COLA adjustments and deferring certificates of obligation issuance. He said the proposed budget reflects council direction to include market and COLA adjustments and to consider deferring the 2026 CO issuance; staff will seek final guidance at the regular meeting.

Solid-waste and golf-course funds were presented as improving: solid waste projects revenue growth (with hauling and disposal costs and fuel surcharges noted), and the golf course fund’s multi-year deficit has narrowed to a projected negative $529,000 (an improvement from roughly a $1.2 million shortfall several years ago).

Havlaw closed by reminding council of upcoming meetings to dive into departmental detail and the fee schedule and reiterated statutory deadlines: council must adopt a budget by Sept. 30, 2026, with a plan to adopt on Aug. 18 following a record vote on Aug. 4. The workshop concluded at 5:53 p.m., with the regular meeting scheduled to begin at 6:05 p.m.

The council did not take any formal votes on the proposed budget at the workshop; staff will return for further workshops and the scheduled public hearing.