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Council sets budget and tax-rate calendar; discusses earmarking sales-tax share for streets
Summary
Staff presented an updated budget calendar and said the city must follow county timelines for tax-rate changes; council discussed dedicating a portion (0.25 percentage points) of the city's sales tax to street repairs or increasing property taxes over time to fund roads and police needs.
City staff summarized the timeline required to adopt a 2025–26 budget and the procedural constraints for changing the property tax rate. The administrator said the county worksheet set deadlines the city missed for raising rates without additional voter notices, which means the city will likely use the county-provided "accounting rate" now and consider adjustments in future cycles.
Council and staff also discussed options for funding an expanded street-repair program. Staff presented a rough cost estimate and proposed two options: dedicate 0.25 percentage points of the city’s 1% sales tax revenue for streets or gradually raise the property tax rate to create a capital fund. "The city's saying, you know, .25, you know, percent point .25% of our 1% will go strictly to roads," City Administrator (S2) said while explaining how a voter-approved mechanism such as an MDD could permit limited ETJ taxation for specified uses.
Council scheduled targeted sessions on Sept. 16 (budget creation) and Sept. 23 (tax-rate work) and directed staff to prepare public notices for the required hearings. Staff planned incremental rate and fee adjustments over several years to avoid sudden changes to residents' bills.
