Mayor proposes up to 10% property tax cut alongside raises in Helotes budget workshop

Mayor opened the June 24 budget workshop by telling the council the city is "in a good position" and outlined a fiscal framework that would deliver pay raises and a taxpayer cut while drawing modestly from reserves. The mayor said the plan would include a "property tax cut significant up to 10% for the citizens" alongside personnel increases.

The proposal the mayor described would fund roughly half of a targeted police pay adjustment (he said that PD raises would be "roughly 7%" for the portion proposed now) plus a 5% across‑the‑board increase for other staff. Staff estimated the proposal as presented would create a one‑year shortfall of about $800,000 that would come from unrestricted reserves; the mayor and staff framed the drawdown as measured and temporary, tied to expected new development revenues.

Why it matters: Helotes' unrestricted reserves have grown substantially in recent years. Staff said the city now holds about 15 months of operating reserves (unrestricted), roughly $13 million, providing room to fund near‑term priorities while holding to a multiyear plan to settle reserves to a target level. Council members repeatedly asked for caution: they stressed the need to avoid a structural deficit if economic conditions soften.

How staff built the numbers: Henry, the lead presenter, said revenue assumptions depend on final property valuations from the Bear County Appraisal/Tax Assessor (final numbers are expected around July 25). He also noted an expected health‑insurance increase and conservative interest assumptions; Henry said staff would refine figures for the next workshop after the appraisal roll and additional data are available.

What council members asked for: Council requested supporting detail before deciding—specifically, a full salary‑survey report (underway, with finer results expected after October), a breakdown of the proposed draws from reserves, and scenario modeling showing the budget impact if projected new development revenues (Brycewood, Bandera Ranch, recent commercial openings) do not materialize on the anticipated timetable.

Next steps: Staff will return with finalized valuation data from the county, the salary‑survey output as it becomes available, and more detailed options for phasing raises and any tax‑rate change. No formal action was taken at the workshop.