City Council Special Meeting

JC Martinezstaffyou mayor council as stated the appropriation resolutions are needed for the general capital wastewater transit stormwater utility cable old town transportation tax debt service and the American Rescue Plan Act also known as the ARPA fund in order to implement the FY 2026 budget the amounts contained are in the attached resolutions are pending approval of the final FY 2026 adoption council action will be taken during the budget adoption portion or agenda item 3e at the end of towards the end of this meeting happy to answer any questions are

JC Martinezstaffyou mayor council an additional two percent to the current four percent meals tax rate was proposed in the city managers FY 2026 budget the last change the meals tax occurred in 2004 when the rate was increased from two percent to four percent 21 years ago an increase to the meals tax is often seen as a way to reduce the financial burden on residents as it is also paid by visitors and non-residents helping to offset the need for higher real estate the proposed 2% increase was estimated to generate approximately 4.4 million dollars in additional revenue after thorough discussion and deliberation City Council expressed no appetite for changing the current meals tax rate the recommended motion formally affirms the decision to maintain the existing rate

Shinneberryclerkmotion passed unanimously our last items the cons or yep it's the last items consideration of appropriation of the FY 2026 budget imprints including all sub budgets contained therein together within with the FY 2026 schedule of rates and levies the FY 2026 through 2030 capital improvement program and the establishment of the corresponding real estate tax rate and the personal property tax rate I will recognize JC Martinez chief financial officer to provide the staff presentation

JC Martinezstaffmayor counsel the attached package includes the staffs recommend a recommended procedure for one adoption of the fy26 budget including the fy26 schedule of rates and levies the fy 20 26 through 2030 capital improvement program two the establishment of the corresponding real estate and personal property tax rates and three the appropriation of all fy 2026 budgeted funds happy to answer any questions all