(Richmond, Texas)- The Richmond City Commission reviewed an overview of fiscal year 2026- 27 proposed budget. Staff presented major fund revenues and expenditures in this first workshop beginning with an overview of the General Fund, the primary operating fund for the city which includes traditional services such as police, fire, public works and parks to name a few.

Staff noted that property tax is the most stable revenue source making up 16% of total revenues impacted by being the County seat, while sales tax, as the largest revenue stream, accounts for 38% of total revenue. Strong sales tax numbers help reduce property tax for residents and businesses. A key assumption is that sales tax is anticipated to grow 3% compared to current year-end estimates.  Staff added the City will continue to adopt a base budget approach with a lean base budget and central contingency which allows flexibility to respond mid-year to unforeseen operating needs, a flexible approach to better manage the timing and use of funds.

The General Fund proposed budget for 2027 remains stable at $25.26 million, a .4528% decrease from current fiscal 2026 of $25.37 million. The fiscal year proposed 2027 operating budget included a presentation on the Utility Fund (Water and Sewer) which is funded through user fees, not property taxes. Staff proposed a 5.5% increase in wastewater rates and 2.0% increase in water rates. Key assumptions include maintaining existing service level expectations, a general salary increase, three new staff positions, a 5% increase in health insurance and an increase from 16.35% to 16.39%, in the Texas Municipal Retirement System (TMRS).

The proposed budget for fiscal year 2027 includes three new positions, an additional police officer due to expanded coverage area and traffic enforcement division; a court clerk to address increased activity; an Assistant Building Official to support continued development and enhanced service continuity.

The next Budget Workshop is Monday, August 17, 2026, at Richmond City Hall Annex, 600 Morton Street to discuss Proposed Tax Rate and further Budget discussions.