City Council Special Meeting: Budget Adoption

Agenda

• 2aPublic hearing on appropriation resolutions for the General, Capital, Wastewater, Transit, Stormwater, Cable, Old Town, Transportation Tax, and Debt Service Funds for the FY27 budget year

  Outcome: Public hearing held. J.C. Martinez presented the staff report. One member of the public (David Gellar) spoke in opposition to the real estate tax rate. Mayor closed the hearing; action deferred to item 3g.

• 3aConsideration of an ordinance amending and readopting Chapter 90, Article II, Division 1, Section 90-33 – Commercial/Industrial Real Property Transportation Tax Rate

  Outcome: Approved unanimously (6-0). Ordinance 2026-04 adopted, setting the 2026 commercial/industrial real property transportation tax rate at $0.125 per $100 of assessed value.

  passedApprove Ordinance 2026-04 setting the commercial/industrial real property transportation tax rate for calendar year 2026 at $0.125 per $100 of assessed value.

  ✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ Peterson
• 3bConsideration of an ordinance amending Chapter 102, Article II, Section 102-31(b) – Wastewater Utility Rate Increase of 6.0 Percent

  Outcome: Approved unanimously (6-0). Ordinance 2026-05 adopted, increasing wastewater utility rates by 6.0 percent.

  passedApprove Ordinance 2026-05 amending Chapter 102, Article II, Section 102-31(b) to increase wastewater utility rates by 6.0 percent.

  ✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ Peterson
• 3cConsideration of an ordinance amending Chapter 102, Article V, Section 102-203(b) – Stormwater Utility Rate at $36.02 per BU (5.0 Percent Increase)

  Outcome: Approved unanimously (6-0). Ordinance 2026-06 adopted, setting the stormwater utility rate at $36.02 per Billing Unit for the calendar year beginning January 1, 2026.

  passedApprove Ordinance 2026-06 amending Chapter 102, Article V, Section 102-203(b) setting the stormwater utility rate at $36.02 per BU for the calendar year beginning January 1, 2026.

  ✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ Peterson
• 3dConsideration of an ordinance amending Chapter 90, Article VI, Section 90-262 – Tax on Meals Increase

  Outcome: Approved 4-2 (Hall and McQuillen opposed). Ordinance 2026-07 adopted, increasing the meals tax rate from 4.0% to 4.5% effective July 1, 2026.

  passedApprove Ordinance 2026-07 amending Chapter 90, Article VI, Section 90-262 to set the meals tax rate at 4.5% effective July 1, 2026.

  ✓ Amos✓ Bates✕ Hall✓ Hardy-Chandler✕ McQuillen✓ Peterson
• 3eConsideration of an ordinance amending Chapter 90, Article VII, Section 90-302 – Transient Occupancy Tax Increase

  Outcome: Approved unanimously (6-0). Ordinance 2026-08 adopted, increasing the Transient Occupancy Tax rate from 4.0% to 10.5% effective July 1, 2026.

  passedApprove Ordinance 2026-08 amending Chapter 90, Article VII, Section 90-302 to increase the Transient Occupancy Tax rate to 10.5% effective July 1, 2026.

  ✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ Peterson
• 3fConsideration of an ordinance amending Chapter 14, Article II, Division 2 – Business License Tax Increase

  Outcome: Approved unanimously (6-0). Ordinance 2026-09 adopted, increasing annual business license (BPOL) tax rates on certain business classifications effective January 1, 2027.

  passedAdopt Ordinance 2026-09 amending Chapter 14, Article II, Division 2 to increase annual license taxes on certain business classifications, effective January 1, 2027.

  ✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ Peterson
• 3gConsideration and appropriation of the FY 2027 Budget, FY 2027 Schedule of Rates and Levies, FY 2027–2031 Capital Improvement Program, and establishment of Real Estate and Personal Property Tax Rates

  Outcome: All motions approved unanimously (6-0). Council adopted the full FY 2027 Budget with all sub-funds, the FY 2027–2031 CIP, the Schedule of Rates and Levies, employee compensation adjustments, established tax rates (real estate at $1.0725/$100; personal property/machinery and tools at $4.13/$100; volunteer fire/rescue at $0.01/$100), and approved appropriation resolutions R-26-16 through R-26-24.

  passedAdopt the FY 2027 Budget (all sub-funds), FY 2027 Schedule of Rates and Levies, FY 2027–2031 CIP, FY 2027 health benefit contribution rates, 2.0% market rate adjustment for general pay scales (July 1, 2026), 1.0% COLA for general employees (July 1, 2026), 2.0% COLA for public safety employees (July 1, 2026), 3.0% salary adjustment for eligible general scale employees (January 1, 2027), and programmed annual step increase for public safety employees.

  ✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ Peterson
  passedAmend the main budget motion to incorporate all changes in the Budget Adjustment Sheet (Attachment I).

  ✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ Peterson
  passedApprove appropriation resolutions R-26-16 through R-26-24 for the General, Capital, Wastewater, Transit, Stormwater Utility, Cable, Old Town, Transportation Tax, and Debt Service Funds for the fiscal year beginning July 1, 2026.

  ✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ Peterson
  passedSet the real estate tax rate at $1.0725 per $100 of assessed value, personal property and machinery/tools tax rate at $4.13 per $100 of assessed value, and personal property tax rate for qualifying volunteer fire/rescue members at $0.01 per $100 of assessed value, all effective January 1, 2026.

  ✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ Peterson