Staff Report
BUDA — Buda city manager Micah Grau filed the city’s proposed budget for fiscal year (FY) 2027 and the Five-Year Capital Improvement Plan (CIP) with the city clerk Aug. 7.
The proposed budget outlines service priorities and community investments for the coming year, while addressing financial constraints driven by rising costs and limited revenue growth.
According to a news release, the proposed budget totals $56.7 million, including approximately $53.9 million for operating expenses and $2.8 million for capital projects.
The budget is balanced with a proposed tax rate of $0.3681 per $100 of valuation, compared to the current rate of $0.3576. The average home with a taxable value of $376,811 will pay $1,387 in property taxes to the city, an increase of $7 over the previous year.
Additionally, the proposed budget includes an increase to water and wastewater rates. Beginning with October meter readings, water rates would increase 6% and wastewater rates would increase 4%. For the average customer, this means a monthly bill increase of approximately $7.20, or 5%. The increase is necessary, according to the release, to pay the rising costs of operations, including water supplies, rising costs of materials and services and debt service associated with system improvements.
"The city’s budget and the services provided are foundational to the success of the community,” said Grau. “Without reliable infrastructure, safety created by the Buda Police Department and community gathering places and events that draw us together, we would not be a thriving community. The city, through its budget, ensures that basics needed for our residents and businesses to thrive are met. The proposed budget addresses these items and advances the priorities identified by the city council.”
The city developed the FY 2027 budget under continued economic pressures. Expenses are outpacing revenues amid low assessed-value growth and rising operating costs, including an increase in insurance premiums, higher fuel costs and general inflation. To present a balanced budget, the city manager and the Finance department reduced department requests by $3.7 million.
Reserves are available for one-time expenses and the city continues to hold one of the lowest property tax rates in the region and state.
Key budget items for FY 2027 include:
• A 6% water rate increase and a 4% wastewater rate increase, averaging approximately $7.20 a month or 5% for the average household customer to offset increased operating costs, expanded water supply costs and investment in infrastructure.
• Residential solid waste will increase slightly from $22.82 to $23.03 per month, with expanded service options to let customers select additional carts including a new optional green waste cart.
• A proposed tax rate of $0.3681 per $100 of valuation continues Buda’s tradition of a low property tax rate.
• Two new Public Works utility positions; no new positions in the general fund.
• Salary and stipend adjustments to keep police officer pay competitive with surrounding jurisdictions.
• New and replacement equipment for Street Maintenance, Parks and police.
• Construction contribution as a partner of the proposed Kyle Regional Animal Shelter.
• A study to explore future water supply options.
Policy priorities for FY 2027:
• Water supply and infrastructure
• Public safety
• Street maintenance and completion of bond projects
• Parks, including playground replacements at Cullen Country and Green Meadows, the opening of Buda Championship Park and the completion of Garison Park
The public is invited to attend and participate in the upcoming city council meetings and hearings on the proposed budget and tax rate:
• Thursday, Aug. 13 – City manager’s budget presentation to city council and record vote on the proposed tax rate
• Tuesday, Sept. 1 – Public hearing on the budget and courtesy hearing on the tax rate
• Tuesday, Sept.15 – Public hearing on the tax rate, courtesy hearing on the budget and first and final reading of the ordinance to adopt the budget and tax rate
To review the proposed FY 2027 budget and the Five-Year Capital Improvement Plan, visit the Budget tab of the Finance department page at www.budatx.gov/budget.
The final, adopted budget will be added to the website after council adopts the document and final edits are complete.
The city’s fiscal year begins Oct.1.
