Tax rate same, spending up in 2025-26 Horseshoe Bay budget
The Horseshoe Bay City Council adopted the 2025-26 fiscal year budget and tax rate during its Sept. 16 meeting. While the tax rate is unchanged, more money is coming in due to rising property values and new construction, and city spending increased significantly over the 2024-25 fiscal year.
TAX RATE
Horseshoe Bay’s property tax rate for 2025-26, which starts Oct. 1, is $0.26775 per $100 property valuation, the same as the past two fiscal years. However, the new rate will raise about 5.25 percent more in revenue, or $563,153, than last year due to a rise in assessed property values and new construction in the city.
According to the 2025-26 budget, the rate will bring in about $11.75 million in property tax revenue. From that, $8.3 million will go into the general fund and $3.1 million will go toward debt service payments.
Property taxes only make up a portion of the city’s projected $43.02 million in revenue, which includes $3.48 million in sales-tax revenue, $13.36 million in utilities revenue, $4.02 million in transfers from other funds, $8.44 million from “other sources,” along with several smaller items.
BUDGET
The 2025-26 budget sees considerable increases to spending in the general fund at $19.28 million, about 29 percent more than last year’s $14.9 million. The general fund pays for most city operations, including administration, police and fire services, and street work.
Some of the biggest increases are for personnel costs, overall operating expenses, capital expenses, and transfers to other funds to help cover capital improvements and vehicle replacements.
“Operational budgets for general fund and utilities have slightly increased due to inflation and higher projected cost due to tariffs and the addition of two new positions (fire and public works),” reads a statement from City Manager Jeff Koska to DailyTrib.com.
Koska also explained that some utility rates also would see increases. Water rates will go up 9 percent from last year and garbage pickup rates will rise 3 percent. Sewer rates will remain the same.
For the upcoming fiscal year, Horseshoe Bay is prioritizing the completion of several multi-year capital projects. These include:
- construction of the new city center and adjoining park facility;
- completion of a second fire station in west Horseshoe Bay;
- installation of a 16-inch transmission water line to connect and expand capacity between the west and east sides of the city;
- final renovations to the city’s central water plant and its storage facility;
- and expansion planning for the westside water plant.
Public safety continues to be a top funding priority. The general fund allocates $3.4 million to the Horseshoe Bay police and fire departments.
DEBT
Horseshoe Bay carries a total $33.635 million in outstanding debt obligations. This consists of several principal and interest payments on loans accrued by the city to fund various projects since 2014.
About $3.1 million in payments will go toward the debt total in the 2025-26 budget.