New Braunfels adopted its next city budget Monday and sent a proposed $500,000 housing fee waiver back for another funding approach after a lengthy debate over who should bear the cost.
The council set the 2026 city property-tax rate at $0.415613 per $100 of taxable value. It also approved infrastructure and service contracts, advanced two ordinances on first reading and heard roadway-fee presentations that did not themselves establish new fees.
This account covers the Sept. 14 regular, 6 p.m. meeting. The official recording establishes the actions below; the agenda and supporting records supply the proposals and background. Our earlier meeting guide explains what was scheduled beforehand.
Budget and city tax rate adopted
Council adopted the FY2027 operating budget and plan of municipal services, including the budget order, on second and final reading. Council approved the resolution ratifying the property-tax revenue increase reflected in the FY2027 budget. Council adopted the 2026 city property-tax rate of $0.415613 per $100 of assessed taxable value on second and final reading.
The tax ordinance divides the rate into $0.221692 for maintenance and operations and $0.193921 for debt service, both per $100 of taxable value. These are the city portions of a property-tax bill, not the combined bill from every taxing entity.
The budget order records changes made during budget development, including revised revenue estimates and money for curb-management work and police-facility repairs. The motions approving the budget, revenue ratification and tax rate all carried in the recording.
Dogwood: another funding route, not a waiver approval
Council denied the Dogwood fee-waiver request as presented and directed staff to seek EDC or other funding options and return for approval.
The request concerned up to $500,000 in New Braunfels Utilities capital-impact and recovery fees for the Park at Dogwood. The staff report describes a 76-unit affordable-housing development at 1869 McQueeney Road serving households at 30% to 60% of area median income.
The result was narrower than either approving the requested waiver or rejecting the housing project outright. Council wanted another financing option brought back. It did not approve a replacement EDC grant at this meeting.
Public testimony exposed a distinction between support for affordable housing and support for using utility fees to help finance it. Council discussion also included support for the housing need while questioning the proposed funding mechanism.
Transit contract approved after a correction
Staff corrected the first-year transit contract total in the packet from $1,717,821 to $1,312,449 before council approved the modification.
The River North Transit item was pulled from consent for separate discussion. The company is a Via Transportation subsidiary providing service to the New Braunfels Urban Transit District.
In response to a resident, staff described state and federal transit funding and an operating measure of roughly $53 per service hour. Council approved the River North Transit contract modification.
NBEDC services agreement approved
Council approved the NBEDC administrative, professional and asset-management services agreement. The annual agreement is capped at $455,386 for FY2027.
The agreement and accompanying report drew questions about the information supplied to council and the public. A resident urged greater care and completeness in meeting packets. The services contract is separate from any future decision about EDC funding for Dogwood.
Drought changes pass first reading
Council approved the first reading of the revised drought-management ordinance; it still required a second reading.
NBU staff said the drought item returned because an earlier agenda caption omitted the Division 7 reference, and described added stages 4 and 5 and proposed weekly watering in stages 3 through 5.
Staff said the intended Oct. 1 implementation date depended on passage of both readings. Monday's action should not be read as a declaration that new watering rules were already in force. The item's supporting ordinance is linked for the legislative context; the changes described here are attributed to the recorded staff presentation.
Parking rules advance; curb study receives its next contract
Council approved the first reading of the Long Creek High School-area parking and loading restrictions. The ordinance and map cover portions of Zipp Road, Klein Meadows and Legend Pond. This was a first reading, not final adoption.
Council concluded its Phase 1 curb-management discussion before taking up the separate Phase 2 contract. Council approved the $68,000 Phase 2 curb-management contract modification with Kimley-Horn. Staff described more curb analysis and public outreach in the fall, with a draft report planned for council in spring 2027.
That contract approval funds the next study phase. It does not mean every possible parking or curb-use policy discussed during the presentation was adopted.
Sewer easement authorized
Council approved the eminent-domain authorization for the utility easement at 470 Rio Drive. The resolution item identifies a 0.7402-acre permanent easement for NBU sewer-system improvements.
The staff report says NBU would bear acquisition costs. The recorded action authorizes the acquisition process; it is not proof that ownership or the easement had already transferred.
Roadway fees: an audit hearing and a later decision
Council received the roadway impact-fee audit presentation and held a public hearing; the discussion ended without an adoption vote. The agreed-upon-procedures report identifies approximately $287,151 in District 1 fees spent after the applicable 10-year deadline. It reports no refund petitions received and says the city was reviewing the transactions and allocation methodology.
A resident asked why impact-fee collections were higher in 2021 and 2022; staff attributed the variation to the amount of development in each year.
Council heard the roadway impact-fee study presentation; no new collection rate was adopted during that presentation. Staff outlined further advisory-committee review, a return to council and an October public hearing before two ordinance readings.
Other consent business
Council approved the consent agenda except items F and H, which were considered separately. The approved bundle included August meeting minutes; airport taxiway rehabilitation contracts; cemetery maintenance; a roof-repair preservation grant of up to $9,255.38 at 367 Main Plaza; Kohlenberg Road design and utility-coordination work; and an interlocal agreement concerning forfeited property.
The airport staff report puts the rehabilitation package at $2,719,224, including a $135,961.20 city share. Approval of a project package is not a finding that all of that money has already been spent.
The consent vote also covered the first reading of the Fire Marshal appeals change and final readings of the Seidel Street and South Walnut Avenue rezonings. Those rezonings concern 1038 and 1042 Seidel Street and 2009 South Walnut Avenue. The complete agenda identifies each item and its attachments.
Citizen comments
Residents asked for clearer board-appointment criteria and outreach, more information about neighborhood development, and a consolidated picture of Headwaters spending and future operating support. Other testimony sought license-plate-reader records and questioned mill-redevelopment traffic and parking plans. One resident praised a recent developer meeting as more open to questions.
Dogwood speakers offered different views on utility subsidies, vouchers and alternative funding. A former council member argued that vacant market-rate apartments do not answer the need for lower-rent homes. During council discussion, a member rejected assumptions that lower-income residents would be worse parents or neighbors. The resulting motion called for other funding options to return for approval.
These statements describe what speakers asked for and argued, not independently established findings about every cost or allegation they raised.
What remains to be decided
Dogwood still needs a returned funding proposal and another approval. The drought and school-area parking ordinances need their next readings. Curb-management work continues toward a later report, and roadway-fee collection rates remain part of a subsequent hearing and ordinance process.
Those are the next records to compare with Monday's votes: the returned Dogwood proposal, final ordinance language and the later roadway-fee decisions.