Council split over tax increase size as FY2027 vote approaches

Councilors spent the bulk of the meeting debating the size of a proposed tax-rate increase and the trade-offs it would require. Staff reminded the council that, under Texas law, a proposed tax rate above the no‑new‑revenue rate requires a supermajority; one councilor told colleagues, “to accomplish this budget requires 5 votes of the city council.” The council discussed options including a 1.2¢ increase paired with $2 million in cuts or the staff‑proposed 2.2¢ increase to maintain services and reserves.

Speakers offered contrasting views: some councilors urged trimming expenditures and using vacancy savings to limit the rate increase; others warned that cutting personnel or contingency would erode services and risk future, larger increases. Staff cautioned that eliminating another $2.4 million would require structural changes and likely affect frontline services and morale. The council set a planning horizon: the budget must be adopted by the September 15 deadline and members asked staff to prepare a follow-up workshop showing concrete scenarios and the service consequences of proposed cuts.