Mayor Ken Mathew will present his formal Budget Message for fiscal year 2026-27 at a special Stafford City Council meeting Monday, Aug. 31, capping a summer of workshops that exposed a nearly $1.9 million structural gap in the city's no-property-tax revenue model.
The meeting begins at 6:30 p.m. at City Hall, 2610 South Main St. Residents may speak during public comment periods on both the Budget Message and the budget workshop that follows.
What the proposed budget shows
The mayor's proposed budget, received by City Secretary Roxanne Benitez on Aug. 13, projects General Fund operating revenues of $31.4 million against expenditures of $30.5 million, according to the agenda packet. That produces an operating surplus of just $29,474.
That's a sharp turnaround from July. A preliminary budget presented at the July 8 workshop showed a $1.93 million revenue shortfall in the General Fund, with 10 vacant positions excluded from the salary figure.
The proposed budget does not erase all red ink. The General Fund Non-Operating fund still carries an ending balance of negative $4.8 million, deepening from the current year's negative $3.9 million.
Stafford's general fund relies on sales tax ($21.9 million projected), franchise fees and charges for services rather than a city property tax.
Summer workshops split the council
The budget workshops exposed sharp disagreements over spending priorities. At the July 30 session, Council Member Virginia Rosas moved to add roughly $2.25 million in items, including $1 million for overtime across police, fire and public works, $500,000 for contingency and $209,000 for fire reclassifications. The motion failed 3-4.
Assistant Fire Chief Mark Vanberschot spoke publicly at that same meeting about the deficit and the city's revenue model. According to meeting minutes, he "requested that an honest conversation with the residents be held to discuss the current revenue model."
Resident Cliff Cowperthwait of 111 Squires Bend, who attended both the July 8 and July 30 workshops, asked council members what they were willing to give up to eliminate the deficit.
Credit upgrade provides backdrop
The budget debate unfolds against a brighter credit picture. On July 17, Moody's upgraded Stafford's issuer rating from A2 to A1, the city's highest ever, citing a fund balance exceeding 40 percent of revenue and a very low debt burden.
What's next
Monday's meeting is the first public presentation of the full proposed budget. The Budget Message text has not been released in advance. Council members Tim Wood, Alice Chen, William Brown Jr., Xavier Herrera, Virginia Rosas and Wen Guerra are listed on the posted agenda.
