09/01/2026
📊 𝑰𝑻’𝑺 𝑩𝑼𝑫𝑮𝑬𝑻 𝑺𝑬𝑨𝑺𝑶𝑵!
City staff has presented City Council the proposed FY27 budget over the last several months. We began in April with introduction of a 𝟒.𝟓𝐌 𝐂𝐞𝐫𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐞 𝐨𝐟 𝐎𝐛𝐥𝐢𝐠𝐚𝐭𝐢𝐨𝐧 (approved on Aug 11) and discussion for Tax Adoption is still ongoing.
𝟐𝟎𝟐𝟕 𝐀𝐝𝐨𝐩𝐭𝐞𝐝 𝐁𝐮𝐝𝐠𝐞𝐭 𝐦𝐮𝐬𝐭 𝐛𝐞 𝐟𝐢𝐧𝐚𝐥𝐢𝐳𝐞𝐝 𝐛𝐲 𝐒𝐞𝐩𝐭𝐞𝐦𝐛𝐞𝐫 𝟑𝟎, 𝟐𝟎𝟐𝟔.
📅 𝐓𝐡𝐞 𝐅𝐘𝟐𝟕 𝐏𝐫𝐨𝐩𝐨𝐬𝐞𝐝 𝐁𝐮𝐝𝐠𝐞𝐭 𝐀𝐝𝐨𝐩𝐭𝐢𝐨𝐧 𝐏𝐮𝐛𝐥𝐢𝐜 𝐇𝐞𝐚𝐫𝐢𝐧𝐠: 𝐒𝐞𝐩𝐭𝐞𝐦𝐛𝐞𝐫 𝟖, 𝟐𝟎𝟐𝟔.
As City Council prepares to consider the FY27 budget and property-tax rate, I want to share some information that may help residents better understand what Council is being asked to decide.
For FY27, Council is currently considering two primary tax-rate options:
🏠 𝐍𝐨-𝐍𝐞𝐰-𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐑𝐚𝐭𝐞 (𝐍𝐍𝐑): $𝟎.𝟓𝟑𝟓𝟑
📈 𝐏𝐫𝐨𝐩𝐨𝐬𝐞𝐝 𝐑𝐚𝐭𝐞 (𝐕𝐀𝐓𝐑): $𝟎.𝟓𝟓𝟏𝟓
The proposed rate would generate approximately $𝟓𝟑𝟓,𝟎𝟎𝟎 𝐦𝐨𝐫𝐞 𝐢𝐧 𝐌&𝐎 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲-𝐭𝐚𝐱 𝐫𝐞𝐯𝐞𝐧𝐮𝐞 than the NNR.
🏛️ 𝐅𝐢𝐫𝐬𝐭, 𝐰𝐡𝐚𝐭 𝐚𝐫𝐞 𝐌&𝐎 𝐚𝐧𝐝 𝐈&𝐒?
Your City property-tax rate has two parts:
𝐌&𝐎 — 𝐌𝐚𝐢𝐧𝐭𝐞𝐧𝐚𝐧𝐜𝐞 & 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐬
This is the portion that supports the City’s day-to-day operations and services, including things such as City Administration, Police, Fire, Streets, Parks and other General Fund operations.
𝐈&𝐒 — 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 & 𝐒𝐢𝐧𝐤𝐢𝐧𝐠
This is the portion used to pay principal and interest on City debt.
For FY27, the 𝑰&𝑺 𝒓𝒂𝒕𝒆 𝒊𝒔 𝒕𝒉𝒆 𝒔𝒂𝒎𝒆 𝒖𝒏𝒅𝒆𝒓 𝒃𝒐𝒕𝒉 𝒐𝒑𝒕𝒊𝒐𝒏𝒔: $𝟎.𝟏𝟖𝟒𝟓. The 𝐝𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞 between the NNR and the proposed rate is 𝐞𝐧𝐭𝐢𝐫𝐞𝐥𝐲 𝐢𝐧 𝐭𝐡𝐞 𝐌&𝐎 𝐩𝐨𝐫𝐭𝐢𝐨𝐧.
📉 𝐖𝐡𝐲 𝐢𝐬 𝐭𝐡𝐞 𝐍𝐍𝐑 𝐡𝐢𝐠𝐡𝐞𝐫 𝐭𝐡𝐚𝐧 𝐥𝐚𝐬𝐭 𝐲𝐞𝐚𝐫’𝐬 𝐭𝐚𝐱 𝐫𝐚𝐭𝐞?
Cibolo’s overall taxable property value declined approximately 𝟒.𝟓%.
That 𝒅𝒐𝒆𝒔 𝒏𝒐𝒕 𝒎𝒆𝒂𝒏 every homeowner’s property value decreased by 4.5%.
Instead, it means the City has a smaller overall taxable base, which helps explain why the calculated No-New-Revenue Rate is higher than last year’s rate.
The term “𝐍𝐨-𝐍𝐞𝐰-𝐑𝐞𝐯𝐞𝐧𝐮𝐞” 𝐜𝐚𝐧 𝐚𝐥𝐬𝐨 𝐛𝐞 𝐜𝐨𝐧𝐟𝐮𝐬𝐢𝐧𝐠.
The NNR is designed to produce approximately the same property-tax revenue from properties that were taxed in both years. 𝑵𝒆𝒘 𝒑𝒓𝒐𝒑𝒆𝒓𝒕𝒚 𝒂𝒅𝒅𝒆𝒅 𝒕𝒐 𝒕𝒉𝒆 𝒕𝒂𝒙 𝒓𝒐𝒍𝒍 𝒊𝒔 𝒆𝒙𝒄𝒍𝒖𝒅𝒆𝒅 𝒇𝒓𝒐𝒎 𝒕𝒉𝒂𝒕 𝒄𝒐𝒎𝒑𝒂𝒓𝒊𝒔𝒐𝒏.
In other words, adopting the NNR 𝐝𝐨𝐞𝐬 𝐧𝐨𝐭 𝐦𝐞𝐚𝐧 the City receives no new property-tax revenue.
🏡𝐖𝐡𝐚𝐭 𝐜𝐨𝐮𝐥𝐝 𝐭𝐡𝐢𝐬 𝐦𝐞𝐚𝐧 𝐟𝐨𝐫 𝐚 𝐡𝐨𝐦𝐞𝐨𝐰𝐧𝐞𝐫?
Using Cibolo’s 𝐚𝐯𝐞𝐫𝐚𝐠𝐞 𝐭𝐚𝐱𝐚𝐛𝐥𝐞 𝐡𝐨𝐦𝐞 𝐯𝐚𝐥𝐮𝐞 𝐨𝐟 𝐚𝐩𝐩𝐫𝐨𝐱𝐢𝐦𝐚𝐭𝐞𝐥𝐲 $𝟑𝟒𝟐,𝟗𝟎𝟕 as an example:
• Current FY26 City tax: approximately $𝟏,𝟕𝟗𝟐/𝒚𝒆𝒂𝒓
• FY27 NNR: approximately $𝟏,𝟖𝟑𝟔/𝒚𝒆𝒂𝒓 — 𝒂𝒃𝒐𝒖𝒕 $𝟒𝟒 𝒎𝒐𝒓𝒆
• FY27 Proposed Rate (VATR): approximately $𝟏,𝟖𝟗𝟏/𝒚𝒆𝒂𝒓 — 𝒂𝒃𝒐𝒖𝒕 $𝟗𝟗 𝒎𝒐𝒓𝒆
These examples reflect the 𝐂𝐢𝐭𝐲 𝐨𝐟 𝐂𝐢𝐛𝐨𝐥𝐨 𝐩𝐨𝐫𝐭𝐢𝐨𝐧 𝐨𝐟 𝐭𝐡𝐞 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲-𝐭𝐚𝐱 𝐛𝐢𝐥𝐥 𝐨𝐧𝐥𝐲. Actual tax bills will vary depending on taxable value, exemptions, frozen tax ceilings and individual circumstances.
🚒👮♀️👵 𝐖𝐡𝐲 𝐝𝐨𝐞𝐬 𝐭𝐡𝐢𝐬 𝐦𝐚𝐭𝐭𝐞𝐫 𝐟𝐨𝐫 𝐬𝐞𝐫𝐯𝐢𝐜𝐞𝐬?
The proposed FY27 budget includes several new personnel priorities, including additional public-safety staffing and dedicated senior programming. I support those priorities.
The question I continue to evaluate is:
𝐂𝐚𝐧 𝐰𝐞 𝐩𝐫𝐢𝐨𝐫𝐢𝐭𝐢𝐳𝐞 𝐭𝐡𝐨𝐬𝐞 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐰𝐢𝐭𝐡𝐢𝐧 𝐭𝐡𝐞 𝐍𝐨-𝐍𝐞𝐰-𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐑𝐚𝐭𝐞, 𝐨𝐫 𝐢𝐬 𝐭𝐡𝐞 𝐚𝐝𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥 $𝟓𝟑𝟓,𝟎𝟎𝟎 𝐢𝐧 𝐫𝐞𝐜𝐮𝐫𝐫𝐢𝐧𝐠 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲-𝐭𝐚𝐱 𝐫𝐞𝐯𝐞𝐧𝐮𝐞 𝐧𝐞𝐜𝐞𝐬𝐬𝐚𝐫𝐲?
That distinction matters.
Supporting firefighters, police officers, senior programming and competitive employee compensation does not automatically answer the separate question of 𝐡𝐨𝐰 𝐦𝐮𝐜𝐡 𝐫𝐞𝐜𝐮𝐫𝐫𝐢𝐧𝐠 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲-𝐭𝐚𝐱 𝐫𝐞𝐯𝐞𝐧𝐮𝐞 𝐭𝐡𝐞 𝐂𝐢𝐭𝐲 𝐬𝐡𝐨𝐮𝐥𝐝 𝐜𝐨𝐥𝐥𝐞𝐜𝐭.
💰 𝐂𝐢𝐛𝐨𝐥𝐨 𝐢𝐬 𝐚𝐥𝐬𝐨 𝐟𝐚𝐜𝐢𝐧𝐠 𝐚 𝐦𝐢𝐱𝐞𝐝 𝐫𝐞𝐯𝐞𝐧𝐮𝐞 𝐩𝐢𝐜𝐭𝐮𝐫𝐞
Property-tax revenues have experienced pressure from declining taxable values, protests, exemptions and frozen tax accounts, while sales-tax revenues continue to show moderate growth.
Before the budget is adopted, I also believe Council should clearly understand the full recurring cost and funding source for any compensation adjustments that are anticipated during FY27, including benefits. These costs and revenues haven't yet been clearly defined by city staff.
The purpose of these graphics is simply to help residents understand the numbers and the choices before Council.
🗣️ Residents are encouraged to review the information, ask questions and participate in the process. Public Hearings are a great time for residents to engage in the process. These decisions affect our community, and Council should hear from residents before they are made.