Officials: Proposed Boerne budget nearly $ 164 million
Average home tax bill will drop
The City Council Tuesday received a 2026-27 budget of $163.9 million that reduces spending by 7.7% from the current year’s budget.
The proposed 2027 budget includes a recommended increase of just under 1 cent to the city’s property tax rate, from 47 cents to nearly 48 cents. The proposed property tax rate increases by 74 cents — equal to $7.40 for each $100,000 of taxable value.
Even with the hike in the tax rate, the average Boerne home’s tax bill will still drop by more than $100 from $2,289 to $2,186, based on the city’s tax rate.
“I am pleased to file the proposed budget. The budget is balanced, aligns financial resources with the City Council’s strategic priorities and reflects months of collaboration among the City Council, department directors and employees,” City FROM PAGE 1
Manager Ben Thatcher read in a letter Aug. 11 to Mayor Frank Ritchie and council members.
Behind the spending reduction is an expected decrease in the General Fund, officials learned.
Thatcher said sales-tax revenue is expected to decline by about $550,000 when compared to the current year’s budget.
Permit- fee revenue is projected to be about $400,000 under the previous fiscal year 2025 budget figure, while interest income is expected to drop by about $320,000.
“Together, these three revenue sources are projected to provide about $1.27 million less than in the fiscal year 2026 budget,” the city manager said.
Department heads trimmed, reduced or delayed spending requests. Thatcher said departments cut or deferred about $600,000 in recurring costs and allowed $1.56 million in one-time costs to expire — creating about $2.16 million extra in budget capacity.
“This budget continues to prioritize the services our residents expect while making strategic investments in the people and infrastructure that support our community,” the city manager said.
The proposed budget includes a 3% cost-ofliving adjustment for employees, along with merit increases based on performance. It also accounts for a projected 9.2% increase in the city’s health insurance costs while continuing to provide competitive employee benefits.
The budget funds three new full-time parks service workers and three new part-time seasonal attendants to maintain the city’s new Boerne Heritage Volkspark once it opens on Adler Road.
The Boerne Police Department will receive an additional officer for its patrol division, to help meet the community’s growing public safety needs, officials said.
Additional funding is also proposed for Boerne Fire Department equipment.
Construction will begin on Boerne’s Fire Station No. 2 in the eastern portion of the city’s service territory.
But the munici pality will fund the 22,000-square-foot facility with cash and issuing $20 million in certificates of obligation, thereby having no influence on the 2027 budget or tax rate.
The fire station is expected to take between 14-18 months to complete.
Under state law, a municipal budget has to be in place by Oct. 1.
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