Copperas Cove reviews $75.9M proposed budget; council told general fund is about $771,000 short

City Manager Ryan Havalah and budget staff presented the City of Copperas Cove's proposed fiscal 2026-27 budget at a June 23 special workshop, laying out a roughly $75.9 million revenue plan against $76.8 million in planned spending across all funds and outlining options to address an estimated $771,000 general fund shortfall.

Ariana Beckman, a city staff member who led the department-by-department presentation, said the proposed budget keeps current service levels while funding personnel costs and capital improvements. "The proposed budget includes about $75.9 million in revenues and $76.8 million in expenditures across all funds," Beckman said. She told the council the general fund is projected at about $26.3 million in revenues and $27.1 million in expenditures, with an ending fund balance of roughly $11.8 million, above the city's three-month reserve target.

Why this matters: the workshop provided council members with granular department numbers and policy choices ahead of scheduled rate and tax-rate decisions that will affect residents and utility customers. Staff flagged options to close the general fund gap, including adjusting the tax rate, drawing on fund balance, or deferring tax-supported capital projects originally planned in 2026 certificates of obligation.

Key details: Beckman said revenue growth of about 3% in the general fund is expected as a result of new construction and added property to the tax roll and continued sales-tax growth. She also said administrative reimbursements increased because the proposed assistant city manager position is budgeted in the general fund for accounting purposes even though its costs will be reimbursed in part from other funds. Public safety remains the largest general fund expense; police administration is budgeted to increase about 9% with market pay adjustments and some designated expenses tied to an OPO settlement, and fire and EMS budgets also reflect compensation and training increases.

Enterprise funds and rates: staff presented the water and sewer fund showing about $24.5 million in revenues and $25.2 million in expenditures; Beckman said the small deficit is anticipated as part of an ongoing utility rate study and that proposed water and sewer rate changes will be discussed at a Thursday presentation. Solid waste revenue is projected to exceed expenditures, producing an improved fund balance; the golf course fund is roughly balanced on a $642,000 budget but still carries a negative prior-year balance.

Council discussion and requests: Council member Brian called attention to a $163,000 new request labeled a "brine project," explaining Copperas Cove has not previously applied brine to city streets and that purchasing brining equipment would align city practice with TxDOT's anti-icing approach and could improve safety on steep roads. "That is something that we have not done ever in Copperas Cove," Brian said. Staff acknowledged the request and noted it is included in the list of new equipment requests to be considered.

Next steps: staff said certified property values are expected by July 30 to inform tax-rate discussions; the council will review fee schedules and rate proposals on Thursday, take a record vote to propose a tax rate on Aug. 4 if needed, and hold the public hearing and adopt the budget and tax rate on Aug. 18 if schedule proceeds as outlined.

The workshop ended with no formal votes; staff will return with rate and fee details at the next scheduled meeting.