City Council Work Session - 2026/07/07

The City Council Work Session for Nacogdoches held on July 7, 2026, focused primarily on the upcoming fiscal year 2027 budget and related financial planning. Interim Finance Director Todd Simino presented detailed budget forecasts, highlighting challenges such as declining property tax valuations, rising healthcare costs, and the need for employee retention, particularly in police and fire departments. The council discussed potential property tax rate increases, with scenarios considering a 3.5% increase to address budget shortfalls and capital needs, including fire engine replacements. The session also covered capital improvement projects (CIP), noting deferrals in general fund projects like drainage due to funding constraints, while utility and bond funds maintain active projects. Revenue optimization efforts were discussed, including audits of hotel/motel taxes, franchise fees, and utility billing, as well as a new fleet management leasing program aimed at cost savings. The council emphasized the importance of grant funding to supplement infrastructure projects and discussed strategies to boost tourism and facility utilization, including a hotel/motel study and potential changes to historic site operations. No formal votes were taken during this work session, but staff were directed to continue refining budget proposals and bring items for formal consideration in future meetings.