SUBJECT
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The City Manager’s submission of the City of Laredo Proposed Annual Budget for Fiscal Year 2026-2027 to the City Council and filing of the proposed budget with the City Secretary, pursuant to Article VI, Section 6.02 of the City Charter and Chapter 102 of the Texas Local Government Code. No action or discussion is requested to adopt the budget or establish or adopt a property tax rate.
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VIVA LAREDO PLAN ALIGNMENT
Alignment Rating: Supporting
Supporting goal(s)/policy(ies): Plan-wide implementation, public transparency, responsible financial planning, and support of the goals and policies contained in the Viva Laredo Comprehensive Plan.
Summary of alignment: The proposed annual budget provides the financial plan for City programs and services. It helps City Council decide how available resources will support community priorities, public services, infrastructure, and the goals of the Viva Laredo Comprehensive Plan
PREVIOUS COUNCIL ACTION
City Council reviewed preliminary information related to development of the Fiscal Year 2026-2027 budget during Special City Council Meetings held on March 25, May 21, and June 2, 2026. The meetings included capital improvement projects, City Council priorities, revenue and payroll projections, employee health and benefit costs, proposed rates, and other pre-budget financial planning matters. No action was taken during these meetings to adopt the annual budget or establish or adopt a property tax rate.
BACKGROUND
Article VI, Section 6.02 of the City of Laredo Charter requires the City Manager to present the proposed budget and accompanying budget message to City Council at least 60 days before the end of the fiscal year.
Chapter 102 of the Texas Local Government Code also requires the proposed municipal budget to be filed with the municipal clerk, made available for public inspection, and posted on the City’s website. City Council will consider the required public hearing, budget adoption, and property tax rate through separate proceedings and agenda items.
COMMITTEE RECOMMENDATION
Not applicable
STAFF RECOMMENDATION
recommendation
Staff recommends that City Council accept submission of the Proposed Annual Budget for Fiscal Year 2026-2027. No action is requested under this item.
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Fiscal Impact
Fiscal Year: FY 2026-2027
Budgeted Y/N?: N/A
Source of Funds: Not applicable
Account #: Not applicable
Change Order: Exceeds 25% Y/N: Not applicable
FINANCIAL IMPACT:
This agenda item does not authorize an expenditure, adopt the Fiscal Year 2026-2027 budget, or establish or adopt a property tax rate. The proposed budget contains the City’s preliminary revenue and expenditure estimates for Fiscal Year 2026-2027.
As required by Texas Government Code §551.043(c), a preliminary taxpayer-impact statement is attached. The statement compares, in dollars, the property tax bill for the median-valued homestead for the current fiscal year with the estimated property tax bill for the same property for the upcoming fiscal year under: (1) the proposed budget and (2) a balanced budget funded at the no-new-revenue tax rate.
Preliminary Taxpayer Impact Statement
The amounts presented below are estimates based on the information available as of July 22, 2026. Certified property values and official tax-rate calculations were not available as of the posting date. The city will update this statement when the final information becomes available.
|
Fiscal Year (Tax Year) |
Median Value Homestead |
Tax Rate per $100 of Value |
Estimated Property Tax Bill |
|
FY 2025-2026 (TY 2025) |
$194,727 |
Adopted 2025 Tax Rate: $0.506090 |
$985.49 |
|
FY 2026-2027 (TY 2026) |
$209,796 |
2026 No New Revenue Tax Rate: $0.464184 |
$973.84 |
|
FY 2026-2027 (TY 2026) |
$209,796 |
Proposed 2026 tax rate based on the proposed budget for 2026-27: $0.505908 |
$1,061.37 |