City Council Work Session - 2026/08/18

The City Council Work Session of Nacogdoches Channel 21 on August 20, 2026, focused primarily on the proposed fiscal year 2027 budget. Finance Director Todd Simino presented key budget highlights including a slight decrease in the property tax rate to 57.166 cents per $100 valuation, resulting in a modest tax savings for homeowners. The council discussed revenue projections, including a 3.5% increase in property tax revenue without raising the tax rate to the voter approval level, and the use of remaining ARPA funds. Significant attention was given to rising health insurance costs, particularly due to increased emergency room expenses linked to a self-funded insurance plan and the impact of the federal No Surprise Billing Act. The council explored strategies to manage these costs, including potential plan design changes and legislative advocacy. Capital improvement projects (CIP) and equipment replacement funding were also discussed, with a conscious multi-year approach to using reserves for CIP to avoid bond issuance and interest costs. The council reviewed cash reserve levels, emphasizing the importance of maintaining reserves for capital expenditures and the phased reduction of CIP funding from reserves. The meeting included discussions on the timing and funding of CIP projects, lease versus purchase decisions for equipment, and the impact of new property values on tax revenue. No formal votes were taken during this work session, but the council was set to receive the proposed budget and consider the tax rate in future formal meetings.