Cibolo City Council on Aug. 19 approved an order calling for the election to support the city budget of around $71.82 million.
What you need to know
Financial Director Anna Miranda shared data with city council, highlighting the impact of an increased tax rate.
At a home value of $350,621—what the city estimates to be the average home value in Cibolo—a homeowner would pay around $1,749 in annual taxes to the city.
This rate can only be approved should the proposition receive the majority of votes in favor of the increase.
If voters do not approve the proposed rate, council will hold another discussion on the tax rate, and the maximum rate that can be set is $0.4769 per $100 valuation.
The home valued at $350,621 would have around $1,672 in annual city taxes at a rate of $0.4769 per $100 valuation.
Managing the impact
Priorities in the budget include bringing public safety staff, including police and fire, to the market pay rate. This increase in pay would assist the city in being competitive with other municipalities.
One of the challenges the city is facing is an increase in the number of homestead exemptions for disabled veterans.
Miranda explained that the homestead exemption for disabled veterans has grown from around 11% of households in 2019 to around 20% of households in 2024.
In FY 2023-24, the amount of revenue forgone was around $3.6 million, with a total of $12.8 million forgone over the last five years.
On Aug. 19 council approved a resolution supporting state legislation to establish a dedicated funding mechanism for the disabled veteran's homestead exemption program.
Mayor Mark Allen said this resolution is designed to advocate for additional funding from the state to help offset the loss of revenue from property tax exemptions.
“We absolutely want our veterans to continue to receive the tax break and not pay any property taxes,” Allen said. “What this resolution is asking for is for the state of Texas to reimburse the cities for the revenue that we are losing.”
What they’re saying
Council member Joel Hicks suggested reducing the fund balance from 28% of recurring operating expenditures in reserve to 25% in reserve.
Staff explained that while it is possible to reduce reserves, those funds would be best used for one-time purchases rather than recurring expenses, which make up the largest portion of the budget. A decision to reduce the fund balance was not made during the meeting.
“We have got to cut it somewhere this year,” Hicks said. “We are on a tight budget, and we’ve got citizens that are on tight budgets.”
Council member Katie Cunningham provided a list of budget items totaling around $52,000 which could be cut. These items included merchandise, networking activities and other staff events.
Cunningham said she believes it is best to give residents the option to vote on the tax rate rather than council set it at the voter approval rate.
This would give residents the opportunity to agree to a larger tax increase to support city staff raises.
“I think we should give the citizens a chance to vote on it,” Cunningham said. “Whether it passes or not, we have to deal with the rate after that.”
The budget and tax rate were approved, with Hicks suggesting that an additional budget meeting be held in September.
This workshop would be focused on finding areas of the budget that could be tweaked to help alleviate constraints.
City Manager Wayne Reed said council can have a workshop in September prior to the start of the fiscal year on Oct. 1.
Next steps
The tax rate increase will be on the Nov. 5 ballot alongside City Council seats and two bond propositions for a public safety facility and animal shelter facility.
The last day to register to vote in the election is Oct. 7. Visit www.votetexas.gov to check voter registration or register to vote.
Early voting begins on Oct. 21. Information on polling locations can be found through the Guadalupe County Elections Department.
