Bastrop’s proposed fiscal year 2026-27 General Fund budget would balance revenue and expenses with a $234,000-plus surplus and fund a 2.5% employee cost-of-living adjustment, while the proposed tax rate would lower the city property tax bill for a median-valued home.
“I know for a fact that’s two years in a row that [city staff has] really, really worked hard at this budget,” Mayor Ishmael Harris said. “So I appreciate the hard work.”
The overview
Bastrop City Council on Aug. 25 set the proposed property tax rate at $0.5118 per $100 valuation—the no-new-revenue rate.
The budget proposal includes about $19.69 million in General Fund revenue and projects $234,248 more in revenue than expenses.
What you need to know
The vote moved the budget process forward by setting the proposed tax rate, but did not adopt the fiscal year 2026-27 budget, final tax rate or proposed COLA.
City officials will hold budget hearings Sept. 8 and Sept. 15, and must adopt the budget before the new fiscal year begins Oct. 1.
Zooming in
The proposal includes:
- An increase of about $800,000 in the Streets Maintenance Fund transfer to cover more street debt currently paid through the General Fund
- No initial hiring of requested police and Fleet and Facilities positions; however, City Manager Sylvia Carrillo-Trevino said the city will reconsider them midway through the fiscal year based on revenue trends
- $290,000 for an 8% health insurance increase—down from the previously projected 26%
- A 2.5% employee COLA
The proposed rate of $0.5118 is 0.78 cents higher than the current rate of $0.5040.
“Well, interestingly enough, we had a decrease in the valuation in the median home value from $304,000 to $292,000 this year,” Carrillo-Trevino said. “That’s a little bit of market adjustment.”
The city estimates the owner of a median-valued home would pay $35.86 less in city property taxes. Individual bills will vary based on each property’s taxable value.
“This also does not include any increases in the utility bills,” Carrillo-Trevino said. “Not at [Bastrop Power & Light], not at water, not at wastewater.”
Some context
As previously reported by Community Impact, Carrillo-Trevino outlined five options for balancing the General Fund on July 28. Council did not vote on an option at that time.
The options addressed a potential $830,468 gap at the no-new-revenue rate if the city funded all initial requests and made no other budget changes.
The proposed budget combines a larger Streets Maintenance Fund transfer—about $800,000 compared to $330,468 under Option 3—with deferred hiring and a lower-than-expected health insurance increase.
Together, the changes would close the potential $830,468 gap, fund the proposed 2.5% COLA and leave a projected $234,248 surplus.
“To be able to tell the citizens your taxes aren’t going up, they’re actually going to go down is phenomenal in this day and age," Council Member Cynthia Meyer said.
Looking ahead
Carrillo-Trevino warned that relying on the no-new-revenue rate could limit the city’s ability to pursue long-term goals, including a recreation center.
“You can’t keep punting it,” she said of relying on the no-new-revenue rate to balance future budgets. “If there are big things that we’re going to want to plan for ... you’re only going to be able to do that for so long.”
