Lucas staff presents proposed FY2026–27 budget; council discusses reserves and tax-rate options

Finance director Liz Exum presented the proposed fiscal year 2026–27 budgets to the council, reporting approximately $11.9 million in general‑fund revenue and a proposed expense level near $11.918 million (a net near $51,000). The water fund projection showed revenues of about $8.1 million and a net position near $106,000.

Exum told council the budget uses Collin County certified appraisal values and the current tax rate of 0.255463 in calculations. She noted minor post‑workshop adjustments, including a $51,000 increase in property tax revenue due to the certified tax roll and a roughly $44,007 change in wastewater revenue because of updated data from the North Texas Municipal Water District. Exum also said liability insurance increased after adding coverage for a new water tower.

Councilors asked about the number of months of operating reserves under GASB 54 (a slight change from previous calculations) and pressed staff on how much of the revenue increase comes from new properties versus increases on existing homeowners; staff said about 70% of the revenue increase is attributable to new residential development and roughly 30% to existing properties. Councilors discussed whether to advertise a no‑new‑revenue tax rate and the timing of separate budget items such as an AV equipment upgrade that would carry both upfront and ongoing costs.

Exum said a public hearing on the budget will be scheduled for Aug. 20 and that the tax‑rate publication and hearings will follow the required public‑notice schedule.