New Braunfels council approves first reading of FY27 budget, including 3% pay increase and new positions

New Braunfels Mayor French opened a special City Council meeting on Sept. 10 where council members voted unanimously on the first reading of Ordinance No. 2026-50 to adopt the FY27 operating budget and associated budget order.

City staff presented the plan of municipal services and the budget order, which captures 19 adjustments since the August 11 presentation as part of “scenario 1.” Jared Warner, the staff presenter, told the council that the budget includes a 3% cost-of-living adjustment for all city employees, step increases for eligible sworn personnel, and roughly $13,000,000 in initiatives and investments tied to the citywide strategic plan. Warner said the budget includes 25 positions across funds and a 23.25 FTE allocation identified under scenario 1 to support service delivery and capital program management.

Warner highlighted structural metrics the council considered: recurring revenues of about $117.6 million versus recurring expenditures of about $117.4 million, leaving the general fund structurally balanced going into FY27. He also reported planned capital spending tied to the 2023 bond program and said much of the year-over-year spending increase is on the capital side.

Mayor Pro Tem Capizzi moved to approve the first reading of Ordinance No. 2026-50, including the budget order; Councilmember Edwards seconded. The motion passed by unanimous voice vote.

The council will consider final adoption of the ordinance on Sept. 14, 2026, when the second reading and ratification will appear on the agenda.