Government
FY 2027 Budget
Council adopted the Fiscal Year 2027 budget on September 15, 2026, by Ordinance No. 2026-064. FY 2027 runs October 1, 2026 – September 30, 2027.
This budget will raise more revenue from property taxes than last year’s budget by an amount of $187,640, which is a 4.95 percent increase from last year’s budget. The property tax revenue to be raised from new property added to the tax roll this year is $61,870.
Record Vote
Local Government Code §102.007 requires the cover page of the adopted budget to show each member’s vote. Ordinance No. 2026-064 was adopted at a special called meeting on September 15, 2026.
| Member | Seat | Vote |
|---|---|---|
| Gunther Tilbortion | Mayor | For |
| Cletus Krenek | Place 1 | Against |
| Peggy Sue Tatum | Place 2 | For |
| Hector Ybarra | Place 3 | For |
| Juanita Cardenas | Place 4, Mayor Pro Tem | For |
| Dwayne Lovelady | Place 5 | Against |
| Francine Goodnight | Place 6 | For |
Motion carried 5–2. Because the budget raises more property tax revenue than last year’s, Council then took a separate vote to ratify the increase (§102.007(c)). That vote also carried 5–2, with the same members voting against.
Property Tax Rates
Rates are per $100 of taxable value. See Property Tax Rates for how each rate is calculated.
| Rate | FY 2026 | FY 2027 |
|---|---|---|
| Adopted property tax rate | $0.696900 | $0.696900 |
| No-new-revenue tax rate | $0.690210 | $0.671200 |
| No-new-revenue maintenance & operations rate | $0.513170 | $0.496393 |
| Voter-approval tax rate | $0.716233 | $0.719800 |
| Debt rate | $0.181500 | $0.184600 |
The FY 2027 rate is below the voter-approval rate, so no election was required.
As of October 1, 2026, the City’s total municipal debt obligations are $11,005,000 in principal, or $14,018,700 including interest to maturity.
Budget at a Glance
The FY 2027 budget appropriates $21,600,000 across all funds. The General Fund is balanced at $9,412,000, up 3.4 percent from FY 2026.
| Fund | FY 2027 Appropriations |
|---|---|
| General Fund | $9,412,000 |
| Utility Fund (water, sewer and sanitation) | $7,846,000 |
| Debt Service Fund | $1,061,000 |
| Capital Projects Fund | $1,642,000 |
| Dongvile EDC (Type B sales tax) | $1,326,000 |
| Airport Fund | $214,000 |
| Hotel Occupancy Tax Fund | $68,000 |
| Municipal Court Special Revenue Funds | $31,000 |
| Tower Maintenance Fund | $14,500 |
| Total, all funds | $21,600,000 |
The Tower Maintenance Fund receives the $1.25 monthly Tower Maintenance Surcharge collected on utility bills since 2019. Its balance on October 1, 2026, was $398,470. The only budgeted expenditure is up to $14,500 for professional color consultation (RFP-2026-09). Painting will not be budgeted until a color is selected (Res. R-2024-07).
General Fund Revenues
| Source | FY 2026 Adopted | FY 2027 Adopted | Change |
|---|---|---|---|
| Property taxes (maintenance & operations) | $2,816,000 | $2,946,000 | 4.6% |
| Sales tax (1.00% City share) | $2,846,000 | $2,958,000 | 3.9% |
| Franchise fees | $531,000 | $548,000 | 3.2% |
| Mixed beverage tax | $39,000 | $41,000 | 5.1% |
| Licenses and permits | $226,000 | $214,000 | −5.3% |
| Charges for services | $91,000 | $96,000 | 5.5% |
| Fines and forfeitures | $301,000 | $286,000 | −5.0% |
| Interest income | $168,000 | $142,000 | −15.5% |
| Intergovernmental | $54,000 | $58,000 | 7.4% |
| Miscellaneous | $25,000 | $27,000 | 8.0% |
| Transfer from Utility Fund (administrative services and return on investment) | $2,004,000 | $2,096,000 | 4.6% |
| Total | $9,101,000 | $9,412,000 | 3.4% |
General Fund Expenditures by Department
| Department | FY 2026 Adopted | FY 2027 Adopted | Change |
|---|---|---|---|
| City Council | $46,000 | $48,000 | 4.3% |
| City Manager’s Office | $398,000 | $412,000 | 3.5% |
| City Secretary and Elections | $218,000 | $236,000 | 8.3% |
| Finance | $452,000 | $468,000 | 3.5% |
| Human Resources | $191,000 | $198,000 | 3.7% |
| Legal (contract City Attorney) | $138,000 | $142,000 | 2.9% |
| Planning & Development | $589,000 | $611,000 | 3.7% |
| Constabulary, including Animal Services | $3,172,000 | $3,284,000 | 3.5% |
| Volunteer Fire Department | $721,000 | $748,000 | 3.7% |
| Emergency Management | $81,000 | $86,000 | 6.2% |
| Municipal Court | $257,000 | $264,000 | 2.7% |
| Public Works: Streets & Drainage | $1,004,000 | $1,042,000 | 3.8% |
| Parks & Recreation, including Cemetery | $738,000 | $762,000 | 3.3% |
| Library | $481,000 | $498,000 | 3.5% |
| Non-departmental (insurance, appraisal district, contingency) | $574,000 | $571,000 | −0.5% |
| Transfer to Airport Fund | $41,000 | $42,000 | 2.4% |
| Total | $9,101,000 | $9,412,000 | 3.4% |
Fund Balance
City policy sets a minimum General Fund unassigned balance of 90 days of operating expenditures.
| General Fund | Amount |
|---|---|
| Estimated fund balance, October 1, 2026 | $3,184,000 |
| Plus FY 2027 revenues | $9,412,000 |
| Less FY 2027 expenditures | $9,412,000 |
| Projected fund balance, September 30, 2027 | $3,184,000 |
| Days of operating expenditures | 123 (policy minimum: 90) |
FY 2027 Highlights
- A 3.0 percent pay adjustment for all City employees.
- Two replacement Constabulary patrol vehicles, purchased with Series 2025 tax note proceeds. Unit 7 is not scheduled for replacement.
- The FY 2027 street seal coat program: 3.4 miles of City streets for $412,800, from the Capital Projects Fund.
- Water, sewer and trash rates as listed on Rates & Fees. The water base charge stays at $24.69.
Debt Obligations
| Issue | Purpose | Outstanding Oct. 1, 2026 | Final Maturity | Repaid From |
|---|---|---|---|---|
| General Obligation Refunding Bonds, Series 2016 | Refunded 2006 City Hall renovation bonds | $1,480,000 | 2031 | Property tax |
| Certificates of Obligation, Series 2019 | Street and drainage improvements | $2,770,000 | 2039 | Property tax |
| Certificates of Obligation, Series 2022 | Street reconstruction, Phase 2 | $1,860,000 | 2042 | Property tax |
| Tax Notes, Series 2025 | Fire apparatus and Constabulary vehicles | $1,750,000 | 2032 | Property tax |
| Utility System Revenue Bonds, Series 2014 | Water Well No. 3 | $1,985,000 | 2034 | Utility revenue |
| Certificates of Obligation, Series 2021 | Water line replacement (self-supporting) | $1,160,000 | 2036 | Utility revenue |
| Total | $11,005,000 |
Tax-supported principal is $7,860,000, or $835.10 per resident. FY 2027 tax-supported debt service is $1,058,400.
Budget Calendar
| Date | Step |
|---|---|
| July 24, 2026 | Brisket Central Appraisal District certifies the 2026 appraisal roll |
| July 31, 2026 | City Manager files the proposed budget with the City Secretary (Loc. Gov’t Code §102.005) |
| August 18, 2026 | Council budget workshop |
| August 20, 2026 | Notices of public hearing published in The Dongvile Gazette |
| September 1, 2026 | Public hearings on the budget and the tax rate |
| September 15, 2026 | Budget, ratification vote and tax rate (Ord. No. 2026-065) adopted |
| October 1, 2026 | FY 2027 begins |
Budget and financial documents
- FY 2027 Proposed Budget (filed July 31, 2026)
- FY 2027 Adopted Budget, Ordinance No. 2026-064
- Annual Comprehensive Financial Report, FY 2025
- Annual Debt Obligation Report, FY 2025 (Loc. Gov't Code §140.008)
- FY 2027 Budget Workshop Presentation, August 18, 2026
- Monthly Financial Report, August 2026
Last updated September 16, 2026