In accordance with the Local Government Code (LGC) and the City of Buda Charter Section 6.03, the City shall hold a public hearing on the proposed budget for the fiscal year ending September 30, 2027.

The City filed the proposed budget for Fiscal Year 2027 on August 7th with the City Clerk, and the City Manager presented the proposed budget to City Council on Wednesday, August 13th. On August 19th, the City published the notice of public hearing on the proposed budget in the City's official newspaper, the Hays Free Press, as required by the Local Government Code, Chapter 102. In accordance with the City Charter and the LGC, the City must hold a public hearing on the proposed Fiscal Year 2027 Budget.

Pursuant to the LGC and the City Charter, the public notice on the proposed budget ending September 30, 2027, has been published as required. The notice of the public hearing on the budget was published in the City's official newspaper on August 19th. The City's Fiscal Year 2027 Proposed Budget has been added to the City's website, as required by the Local Government Code. It is also available by contacting the City Clerk's Office.

The proposed budget totals $57,041,600 in expenditures, a $22.6 million decrease from FY 2026 ($79,617,407) due primarily to the timing of Capital Improvement Plan project expenditures based on current funding availability. Assumptions include:

• Property tax assessed valuation: 0.3% decrease (certified 2025 vs. 2026, excluding new values)
• General Fund property tax revenue: 9.9% increase
• Sales tax revenue: 4% increase
• Increase of 8% in water rates and an increase of 4% in wastewater rates (impact of 6% to average residential customer).
• Sanitation: New rate structure; residential base service increase of $0.21 per month (0.91%, excluding sales tax)
• Property tax proposed rate increase of $0.0319 from $0.3576 to $0.3895
• General staff: No merit pay increase; 3% non-recurring payment distributed quarterly
• Police sworn personnel: 3% pay-scale adjustment in addition to existing 3% step plan adjustment
• Health insurance: 41% premium increase with introduction of High Deductible Health Plan option
• One position elimination in the General Fund; two new positions in Water/Wastewater funds; and two vacant positions frozen in the Hotel Occupancy Tax fund.

None.

Not applicable.