Universal City Council adopts FY2027 budget, holds tax rate at 0.53

The Universal City Council adopted the city's fiscal year 2027 budget and approved the proposed ad valorem tax rate of 0.53 per $100 of appraised value after a motion and unanimous vote.

Staff presenting the budget said it "includes a cost of living adjustment for existing staff, no additional staffing is being requested, [and] proposed ad valorem taxes to remain at 0.53." The presentation listed projected general fund revenue of $22,764,455 and said tax revenue represents roughly 73% of that fund.

The budget funds capital purchases including two new fire apparatuses at a total purchase price the presenter identified as $3,400,000, using previously reserved funds of $2,400,000 and additional FY2027 funding so the city would not issue new debt. Staff said the projected general fund balance at the end of the fiscal year is "approximately 11.5" (staff framed this against the fund-balance policy target of 12 months and said they would return with a recoup plan if needed).

Council members praised staff for maintaining services while holding the tax rate steady. After a public hearing with no speakers on the budget, the council voted to adopt Resolution 909H2026, which formalizes the FY2027 budget adoption.

The council also approved on first reading an ordinance to set the ad valorem tax rate (M&O 0.425; debt service 0.105) to support the adopted budget. Staff described the sensitivity of revenue to tax changes, noting that a 1-cent change in the tax rate equates to about $200,000 in city revenue and described the rough homeowner impact as about $10 per $100,000 of home value per year.