On November 5, Cibolo voters will face a tax ratification election on whether to increase the tax rate to $0.4990 per $100 of value.

The Cibolo City Council approved an ordinance on August 19 that would allow elections to support the city’s approximately $71.82 million budget.

What you need to know

Finance Director Anna Miranda presented data to the City Council and highlighted the impact of an increased tax rate.

With a home value of $350,621—the city’s estimated median home value in Cibolo—a homeowner would have to pay about $1,749 in taxes to the city annually.

This rate can only be adopted if the proposal receives a majority of votes in favor of the increase.

If voters do not approve the proposed rate, the council will have further discussion on the tax rate and the maximum rate that can be set is $0.4769 per $100 of value.

The home, valued at $350,621, would incur annual municipal taxes of approximately $1,672, a tax rate of $0.4769 per $100 of value.

Managing impacts

One of the budget’s priorities is to raise public safety personnel, including police and firefighters, to market wages. This wage increase would help the city be competitive with other municipalities.

One of the challenges the city faces is the increase in the number of property tax exemptions for disabled veterans.

Miranda explained that the property tax exemption for disabled veterans has increased from about 11% of households in 2019 to about 20% of households in 2024.

In the 2023-24 fiscal year, the amount of lost revenue was approximately $3.6 million. Over the past five years, the total was $12.8 million.

On August 19, the Council passed a resolution supporting state legislation to establish a special funding mechanism for the Homestead Exemption Program for disabled veterans.

Mayor Mark Allen said the resolution is intended to seek additional funding from the state to offset the loss of revenue from the property tax exemption.

“We absolutely want our veterans to continue to receive tax relief and not have to pay property taxes,” Allen said. “This resolution calls for the State of Texas to reimburse cities for the revenue we are missing out on.”

What they say

Council member Joel Hicks proposed reducing the fund balance from 28% of recurring operating expenses to 25% of reserve.

Staff explained that while it is possible to reduce reserves, these funds would be better used for one-off purchases rather than recurring expenses, which make up the bulk of the budget. No decision to reduce the fund balance was made during the meeting.

“We have to make cuts somewhere this year,” Hicks said. “We are on a tight budget and our citizens are on a tight budget as well.”

Council member Katie Cunningham presented a list of budget items totaling about $52,000 that could be cut. These items included merchandise, networking activities and other staff events.

Cunningham said she believes it would be best to give citizens the opportunity to vote on the tax rate rather than having the council set it based on voter approval ratings.

This would give citizens the opportunity to approve a larger tax increase to support city staff pay raises.

“I think we should give the citizens a chance to vote on it,” Cunningham said. “Whether it passes or not, then we have to address the level of the tax rate.”

The budget and tax rate were approved, with Hicks proposing to hold another budget meeting in September.

The focus of this workshop is to identify budget areas that could be optimized to reduce bottlenecks.

City Manager Wayne Reed said the council could hold a workshop in September before the start of the fiscal year on Oct. 1.

Next Steps

The tax rate increase will be voted on Nov. 5, as will city council seats and two bond proposals for a public safety facility and an animal shelter.

The last day to register to vote is October 7. Visit www.votetexas.gov to check your voter registration or to register to vote.

Early voting begins October 21. For polling location information, contact the Guadalupe County Elections Office.