Council hears staff case for a tax-rate rebalance and reserves as FY2027 constraints deepen

Allison Steadman, Garland’s chief financial officer, and City Manager Mike Betts presented the proposed FY2027 operating budget and a staff recommendation to rebalance the tax rate to protect core services. Steadman summarized revenue sources and said certified values came in higher than preliminary estimates, generating roughly $1 million of additional capacity staff recommended holding in reserve. "Preliminarily we're estimating the certified values will generate an initial $1,000,000 from what we had included in the proposed budget," staff said.

Mike Betts framed the proposal around three priorities: avoid using one-time money to cover structural gaps, address wage compression to reduce chronic vacancies, and connect budget choices to the Garland on the Rise strategic plan. Betts warned that Senate Bill 2 has created a structural mismatch between revenue capacity and inflation. "I have recommended to the council... that we not use one time money to solve that structural financial gap," he said, adding that some one-time funds should be reserved for strategic investments and legislative risk. Council directed staff to present further detail at upcoming meetings and scheduled public hearings on the proposed tax rate and budget.