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CITY OF ALAMOHEIGHTS
ADMINISTRATION AND FINANCE DEPARTMENT
CITY COUNCIL AGENDA MEMORANDUM
TO: Mayor and City Council
FROM: Kristine Horton, Finance Director
SUBJECT: Ordinances to be adopted in the following order:
1. FY 2026-27 Operating Budget
2. 2026 Ad Valorem Tax Rate
3. Ratifying the Increase in Property Tax Revenue Reflected in the FY 2026-
27 Budget
DATE: August 24, 2026
SUMMARY
The Proposed Operating Budget for FY 2026-27 establishes appropriations for the General Fund,
Utility Fund, Debt Service Fund, Capital Project Funds, Capital Replacement Funds, Street
Maintenance Fund, and Comprehensive Fund. City Council approval of the budget is required by
City Charter.
The City is proposing to adopt a maintenance and operation (M&O) tax rate of $0.354591 per
$100 of taxable value, which is the rate that will produce tax revenues projected in the FY 2026-
27 Budget. An interest and sinking (I&S) tax rate of $0.071953 per $100 of taxable value is
proposed to fund the debt payment which would be paid by 2026 property taxes. The total tax
rate is $0.426544 which represents 15.24% change from the current tax rate and an increase of
12.06% compared to the No New Revenue Tax Rate.
Local Government Code Chapter 102 requires that if the adopted budget raises more total
property tax revenue than in the previous year, a separate vote be made to ratify the property tax
increase in the budget. The FY 2026-27 budget will raise $835,323 more total property taxes
than last year’s FY 2025-26 budget.
Local Government Code requires cities to adopt a budget before the adoption of the tax rate.
Staff recommends approval of these ordinances in the order presented in accordance with state
law.
BACKGROUND INFORMATION
On August 10, 2026, staff formally presented the proposed budget to the City Council and
citizens of Alamo Heights. The proposed budget document is available on the City’s website. A
public hearing is scheduled for the proposed ad valorem tax rate on August 24, 2026. A budget
public hearing is scheduled for August 24, 2026, at the 5:30 p.m. City Council meeting.
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POLICY ANALYSIS
The CityCharter Article XIV, Section 2, requires that the City Manager prepare a budget to
cover all proposed expenditures of the City for the succeeding year and that the budget be
presented to the City Council for consideration and approval. The budget must be prepared in
conformity with state law, and a City Council vote is required to set the property tax rate. State
law also requires a separate vote to ratify the increase in property tax revenue in the budget.
COORDINATION
Staff coordinated with the City Manager, Assistant City Manager, City Attorney, and Finance
Director for Council consideration.
FISCAL IMPACT
This action will establish an annual operating budget for FY 2026-27 and the 2026 Tax Rate.
ATTACHMENTS
Attachment A – Ordinance Adopting FY 2026-27 Operating Budget
Attachment B – Ordinance Adopting 2026 Ad Valorem Tax Rate
Attachment C – Ordinance Ratifying the Property Tax Revenue Increase in the Budget
______________________
Kristine Horton
Finance Director
______________________
Buddy Kuhn
City Manager
3.
Attachment A
Ordinance No.2265 1
ORDINANCE NO. 2265
AN ORDINANCE MAKING APPROPRIATIONS FOR THE
VARIOUS FUNDS AND PURPOSES OF SUCH BUDGET
AND ADOPTING A BUDGET FOR OPERATING THE
MUNICIPAL GOVERNMENT OF THE CITY OF ALAMO
HEIGHTS INCLUDING APPROPRIATIONS OF MONEY
TO PAY INTEREST AND PRINCIPAL SINKING FUND
REQUIREMENTS ON ALL INDEBTEDNESS FOR THE
FISCAL YEAR BEGINNING OCTOBER 1, 2026 AND
ENDING SEPTEMBER 30, 2027; AND PROVIDING A
SAVINGS AND SEVERABILITY CLAUSE; REPEALING
ALL ORDINANCES AND APPROPRIATIONS IN
CONFLICT WITH THE PROVISIONS OF THIS
ORDINANCE; AND ESTABLISHING AN EFFECTIVE
DATE.
WHEREAS, on the 27th
day of July 2026, the City Manager of the City of Alamo
Heights, Texas filed with the City Secretary the proposed budget for the City of Alamo Heights,
Texas, for the fiscal year beginning October 1, 2026, and ending September 30, 2027; and
WHEREAS, there is a need to increase the solid waste regular service fee that was set
on October 1, 2025 at $29.00 per month for residents and residential service-duplex or
multifamily customers and $45.00 per month for non-residential service in order to keep up with
rising costs; and
WHEREAS, beginning October 1, 2026, the first phase of the solid waste regular service
fee for residents and residential service-duplex or multifamily customer accounts will increase
by $5.00 to a total of $34.00 per month for the first cart and an additional $20.00 per extra cart.
Non-residential service customer accounts will decrease by $11.00 to a total of $34.00 per month
and an additional $20.00 per extra cart. The second phase of the solid waste regular service fee
for residents, residential service-duplex or multifamily, and non-residential will increase by
$4.00 to a total of $38.00 per month for the first cart and an additional $20.00 per extra cart
beginning October 1, 2028. The second phase will allow the City to build a reserve to purchase
capital items related to solid waste.
WHEREAS, a public hearing was ordered by the City Council of the City of Alamo
Heights, Texas and a public notice of said hearing was duly posted and published in the San
Antonio Express/News in accordance with applicable state law and the City Council held a public
4.
Attachment A
Ordinance No.2265 2
hearing on August 24, 2026 in the Alamo Heights Council Chambers at 6116 Broadway and via
live videoconference (Facebook and YouTube); and
WHEREAS, during said public hearing, all interested persons were given the
opportunity to be heard for or against any item or the amount of any item contained in said
budget, after which said public hearing was closed; and
WHEREAS, the City Council finds that all provisions pertaining to the adoption of the
budget contained in state law and the City Charter have been complied with; and
WHEREAS, after full and final consideration, the City Council is of the opinion that the
budget is in accordance with Article XIV Section 2 of the City Charter in that the estimated
expenditures will in no case exceed proposed revenues and said budget should be approved and
adopted; and
WHEREAS, the City Council, upon full consideration of the budget, is of the opinion
that the budget hereinafter set forth is proper and should be approved and adopted.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF ALAMO HEIGHTS, TEXAS:
SECTION 1. Subject to the applicable provisions of state law and the City of Alamo
Heights City Charter, the budget for the fiscal year beginning October 1, 2026 and terminating
September 30, 2027, as filed and submitted by the City Manager, and adjusted by the City
Council, containing estimates of resources and revenues for the year from all of the various
sources, and the projects, operations, activities, and purchases proposed to be undertaken during
the year, together with the estimated costs thereof, and estimated amounts of all other proposed
expenditures, is hereby approved and adopted in the form of Exhibit “A”, “The Adopted FY
2026/2027 Budget”, a copy which is appended hereto.
SECTION 2. The City Council hereby authorizes the Mayor and the City Manager to
sign documents authorizing the payment of funds, and to expend public expenditures that have
been expressly approved and appropriated in this budget.
5.
Attachment A
Ordinance No.2265 3
SECTION 3: The City Secretary is also directed to post the adopted budget and required
budget cover page on the City’s website.
SECTION 4: That should any part, portion, or section of this ordinance be declared
invalid or inoperative or void for any reason by a court of competent jurisdiction, such decision,
opinion or judgment shall in no way affect the remaining portions, parts, or sections or parts of
section of this ordinance, which provisions shall be, remain and continue to be in full force and
effect.
SECTION 5. That all ordinances and appropriations for which provision has heretofore
been made are hereby expressly repealed if in conflict with the provisions of this ordinance.
SECTION 6. This ordinance shall take effect and be in full force and effect on October
1, 2026, after its passage and approval according to law.
PRESENTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
ALAMO HEIGHTS, TEXAS THIS 24th DAY OF AUGUST 2026.
ALBERT HONIGBLUM, MAYOR
ATTEST:
ELSA T. ROBLES, CITY SECRETARY
APPROVED AS TO FORM:
JESSIE LOPEZ, CITY ATTORNEY
6.
Attachment B
ORDINANCE NO.2266
AN ORDINANCE ADOPTING A TAX RATE AND LEVYING AN
AD VALOREM TAX UPON ALL PROPERTY SUBJECT TO
TAXATION AT THE RATE OF $0.426544 FOR EVERY $100.00
VALUATION FOR THE SUPPORT OF THE CITY
GOVERNMENT OF THE CITY OF ALAMO HEIGHTS, TEXAS,
SPECIFYING SEPARATE COMPONENTS OF SUCH RATE FOR
MAINTENANCE AND OPERATIONS AND FOR DEBT SERVICE;
SAID TAXES BEING LEVIED FOR THE 2026 TAX YEAR;
PROVIDING FOR DUE AND DELINQUENT DATES TOGETHER
WITH PENALTIES AND INTEREST; PROVIDING FOR
COLLECTION AND ORDAINING OTHER RELATED
MATTERS; AND SETTING AN EFFECTIVE DATE.
WHEREAS, the appraisal roll of the City of Alamo Heights, Texas for 2026 has been prepared
and certified by the Bexar County Appraisal District and submitted to the City’s Tax Assessor/Collector;
and
WHEREAS, Section 26.05 of the Texas Property Tax Code provides that before the later of
September 30th
or 60th
day after the date the City received the certified appraisal roll the City Council shall
adopt a tax rate for the current tax year; and
WHEREAS, following notice and public hearing in accordance with applicable state law and based
upon said appraisal roll, the City Council has determined a tax rate to be levied for 2026 Tax Year is
sufficient to provide the tax revenues required by the City; and
WHEREAS, the City Council of the City of Alamo Heights approved the municipal budget for the
fiscal year beginning October 1, 2026, and ending September 30, 2027; and
WHEREAS it is necessary that an Ordinance be passed levying an ad valorem tax on all property,
both real and personal, within the corporate limits of Alamo Heights in accordance with such budget and
Chapter 26 of the Texas Property Tax Code.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALAMO HEIGHTS,
TEXAS:
Section 1. That there is hereby levied for the 2026 tax year on all property, real, personal and
mixed, within the limits of the City of Alamo Heights, Texas, not otherwise exempt by the Constitution and
laws of the State and the Ordinances of this city, a tax rate on $100.00 valuation as follows:
$0.354591 for the purpose of maintenance and operation
$0.071953 for the payment of principal and interest on debt of this city
$0.426544 Total tax rate
Section 2. That the Bexar County Tax Assessor-Collector shall collect the tax aforesaid as provided
by law.
7.
Attachment B
Section 3.THIS TAX RATE WILL RAISE MORE TAXES FOR
MAINTENANCE AND OPERATIONS THAN LAST YEAR’S TAX RATE.
Section 4. THE TAX RATE WILL EFFECTIVELY BE RAISED BY 16.76
PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND
OPERATIONS ON A $885,505.00 HOME BY APPROXIMATELY $450.75.
Section 5. That all taxes levied by virtue of this Ordinance shall be due and payable not later than
the 31st
day of January 2027, and if then not paid, shall be subject to penalties and interest in the manner
provided by law.
Section 6. That the Bexar County Tax Assessor-Collector is hereby authorized to assess and collect
the taxes of the City of Alamo Heights, Texas, employing the above tax rate.
Section 7. That all ordinances and parts of ordinances in conflict with this ordinance are hereby
repealed to the extent of said conflict.
Section 8. That this ordinance shall take effect immediately upon passage.
PRESENTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALAMO
HEIGHTS, TEXAS THIS 24th
DAY OF AUGUST, 2026.
ALBERT HONIGBLUM, MAYOR
ATTEST:
ELSA T. ROBLES, CITY SECRETARY
APPROVED AS TO FORM:
JESSIE LOPEZ, CITY ATTORNEY
8.
Attachment C
ORDINANCE NO.2267
AN ORDINANCE RATIFYING THE PROPERTY TAX
REVENUE INCREASE REFLECTED IN THE FISCAL
YEAR 2026-2027 BUDGET AND SETTING AN EFFECTIVE
DATE.
WHEREAS, Sections 102.005 (b) and 102.007(c) of the Texas Local Government relating
in part to "truth-in-taxation disclosure"), requires a separate vote of the City Council to ratify a
property tax revenue increase, if any, reflected in a newly adopted budget and providing the
necessary disclosure language in the ratification, when there is an increase to the property tax
revenues in the proposed budget as compared to the previous year; and
WHEREAS, the City's 2026-27 Budget has an increase in property tax revenues as
compared to the previous year; and
WHEREAS, as a result of the approval of the 2026-27 Budget, the City Council finds that
it must ratify the increased revenue from property taxes.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF ALAMO HEIGHTS, TEXAS THAT:
SECTION 1. The increased revenue from property taxes in the Fiscal Year 2026-27 City
Budget is hereby ratified, with the following declaration:
THIS BUDGET WILL RAISE MORE TOTAL PROPERTY TAXES THAN LAST
YEAR'S BUDGET BY $835,323 AS REFLECTED IN THE 2026-2027 FISCAL YEAR
BUDGET ADOPTED ON AUGUST 24, 2026, AND IS HEREBY RATIFIED.
SECTION 2. This ordinance shall become effective immediately after passage.
PRESENTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALAMO
HEIGHTS, TEXAS THIS 24th DAY OF AUGUST, 2026
________________________________
ALBERT HONIGBLUM, MAYOR
ATTEST:
__________________________________
ELSA T. ROBLES, CITY SECRETARY
APPROVED AS TO FORM:
JESSIE LOPEZ, CITY ATTORNEY
