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Agenda Item Report

Legislative Board:	City Council
Date:	September 15, 2026
Contact:	Natassa Robbins
Agenda Item ID / Number:	2026-718 / I.1

ITEM TITLE:

Public hearing, deliberation and possible action to consider an Ordinance on first and final reading and to adopt said Ordinance approving and adopting a budget for operating the municipal government of the City of Buda for the Fiscal Year beginning October 1, 2026, and ending September 30, 2027; adopting the Capital Improvements Plan; adopting and amending Appendix A of the Code of Ordinances entitled Fee Schedule; adopting the Employee Compensation Plans; appropriating money for the various funds and purposes of such budget including appropriations of money to pay interest and principal sinking fund requirements on all indebtedness; repealing all ordinances and appropriations in conflict with the provisions of the ordinance; establishing an effective date; and providing for filing of the budget (Finance Director Bianca Redmon) [PUBLIC TESTIMONY]

1. EXECUTIVE SUMMARY

In accordance with the Local Government Code and the City Charter, the City Council must adopt an annual budget. This will be the first and final reading for the adoption of the budget for fiscal year ending September 30, 2027.

2. BACKGROUND/HISTORY

Each year, the City Council is required to adopt a budget for the upcoming fiscal year. The City's proposed budget for Fiscal Year 2027 was filed with the City Clerk on August 7th. The City Manager presented the proposed budget to City Council on August 13th. The City is also required to hold a public hearing on the budget. The official public hearing on the budget was held on September 1st. This item also includes a courtesy public hearing on the budget to encourage citizen input. The adoption of the budget on September 15th is in accordance with the City's Fiscal Year 2027 budget calendar and complies with the City Charter. Per the City Charter, adoption of the annual budget must occur on or before September 20th.

3. ANALYSIS

Staff have prepared the proposed budget that has been submitted to City Council. The proposed budget includes the Five-Year Capital Improvements Plan (CIP), the Fee Schedule for the 2027 fiscal year, and the City's compensation plans.

4. FINANCIAL IMPACT

Total Operating Budget: $54,453,707

Total Capital Project Budget: $2,827,893

Total City of Buda Budget: $57,281,600

Projected water user fee revenue for FY 2027 is $7,367,987, and projected wastewater user fee revenue is $7,140,000.

The FY 2027 Proposed Budget assumes a property tax rate of $0.3895 per $100 valuation and a sales tax rate growth of 4%.

Significant Fee Schedule Changes:

Development Fee Changes:
- Various – see schedule
Utility Rate Changes
- The fee schedule includes an 8% increase in water rates, and a 4% increase in wastewater rates for effectively a 6% (or approximately $8.75) impact on the average utility bill.
Notary Fee
Parks
- Addition of Buda Championship Park fees
Update to sanitation fees, effective October 1, 2026

5. STRATEGIC PLAN/GOALS

EXCEPTIONAL CITY SERVICES

6. STRATEGIC PLAN OBJECTIVES

Maintain a fiscally responsible City property tax rate and competitive fee structure. Deliver City services consistent with our City of Buda mission and core values.

7. PROS AND CONS

Pros: approval adopts a budget and operations plan for Fiscal Year 2027 compliant with the Charter and state law.

Cons: none.

8. ALTERNATIVES

The City Council may make adjustments to the allocations within the various funds and modify the proposed fee schedule.

9. REQUESTED ACTION / SUGGESTED MOTION / RECOMMENDATION

Staff recommends consideration of the adoption of an ordinance approving and adopting a budget for operating the Municipal Government of the City of Buda for the fiscal year beginning October 1, 2026, and ending September 30, 2027; appropriating money for the various funds and purposes of such budget including appropriations of money to pay interest and principal sinking fund requirements on all indebtedness; repealing all ordinances and appropriations in conflict with the provisions of this ordinance; establishing an effective date; and providing for the filing of the budget. The following are included as exhibits in the agenda item: a. Exhibit A: Five -Year Capital Improvement Plan b. Exhibit B: Code of Ordinance, Appendix A, Fee Schedule c. Exhibit C: Employee Compensation Schedules A record vote is required according to LGC 102.007(a). The motion must be made precisely as follows: I move to adopt the Fiscal Yyear 2027 budget as presented.

Attachments: