BY DaLeesa Quain
In response to damage from the July 4 flood, the San Angelo City Council on Tuesday approved a resolution to set aside $1 million from the North Tax Increment Reinvestment Zone (TIRZ) fund.
The funding will support flood-affected commercial and multi-family properties located primarily along North Chadbourne Street, Grape Creek Road and Lake Drive.
“The TIRZ board has an interest in assisting the flood victims, particularly in the north TIRZ,” said Planning and Development Services Director Aaron Vannoy. “All of these properties appear to have some level of damage from water that inundated them.”
A total of 72 properties were identified during the city’s damage assessment. While all properties in the North TIRZ remain eligible for the standard funding program, this initiative creates a separate set-aside for those impacted by the July 4 flood event.
The $1 million allocation comes from the $2,526,890 currently unassigned in the North TIRZ fund, and according to city documents, an additional $900,000 to $1.1 million in new funding is expected in October.
“If they happen to be a RS1 zoned property, say a single family residential, they are not eligible, but we will work through those things and we will find them the resources that they may need if they haven’t been satisfied with some resources already,” Vannoy said.
Under the program:
- Eligible properties can apply for up to $55,000
- No applicant matching funds are required
- 10 percent of funds can be paid upfront with submitted receipts or invoices
- The application window opens immediately and closes 90 days after council approval
- Any unassigned or unused funds after the 90-day window will return to the North TIRZ fund
“This is a slightly modified program… they would still come to TIRZ, they would still come to City Council, and y’all would make the final decision of funding,” Vannoy said.
The measure passed unanimously.
What’s Next
The City Council is expected to take final votes on the proposed budget and property tax rate at its Sept. 2, 2025 meeting. The flood relief fund for North TIRZ properties will be open for applications starting immediately, with a 90-day deadline.
The San Angelo City Council on Tuesday approved several measures, including the issuance of $1.11 million in tax notes for improvements at the San Angelo Regional Airport, the first reading of the city’s proposed 2025-26 operating budget, and the initial public hearing on the 2025 property tax rate.
$1.11 Million in Tax Notes Approved for Airport Expansion
Council unanimously approved an ordinance authorizing the sale of approximately $1,110,000 in tax notes to fund the South Hangar Access Taxilane project at the airport. The funds will provide access for future hangar development on green space parcels.
“This is something of dire need and will bring some great improvements to the airport,” said Mayor Tom Thompson.
As stated in city documents, the note will mature on Aug. 15, 2026, with a true interest cost of approximately 3.52 percent.
According to Finance Director Tina Dierschke, bids were received on Aug. 15, and the city is scheduled to receive the proceeds on Sept. 18. The one-time funding comes from the city’s Debt Service Fund and will not increase the Interest & Sinking (I&S) property tax rate.
The project is supported by a combination of federal and local funds, including $3.41 million from FAA’s Infrastructure Investment and Jobs Act (IIJA), $300,000 in airport fund balance, and $1.06 million from the city via the approved tax notes.
2025-26 Budget Introduced
Council also held the first public hearing and reading of the proposed 2025-26 city budget. The ordinance, which passed unanimously, includes funding increases in public safety, animal services, employee raises, and citywide software upgrades.
The proposed $5.7 million increase in total property tax revenue—roughly 9.7 percent over last year—includes about $861,795 in revenue from new properties added to the tax rolls.
Key items in the budget include:
- Additional funding for police training and software
- Fire department overtime and equipment
- Two new animal services officers and enhanced rescue services
- Software improvements for Human Resources, Planning, and the city website
- A 5% pay raise for city employees
- Funding for retiree health insurance
The staffing levels and employee pay schedule were also approved as part of the budget ordinance.
Property Tax Rate Maintained With Slight Increase for Bond Payments
Council conducted its first public hearing on the proposed property tax rate of $0.7947 per $100 of valuation for the 2025 tax year. This is a $0.0403 increase from the prior year, primarily to cover recent voter-approved bond obligations.
“We’re looking to keep the same tax rate we’ve carried for the past 10-11-12 years,” Mayor Thompson said, seeking clarification on the proposed increase.
“For the most part, that 0.0343 [cent increase] is due to the bond issue,” Dierschke responded. “When we went to the voters with the bond issue, we expected a possibility of a 4.7-cent increase, so that is still less than what we had expected and planned.”
“You have kept everything as flat and consistent as manageable as possible, correct?” Thompson asked.
“Correct,” Dierschke replied.
The proposed rate includes:
- $0.6238 for the General Fund
- $0.0072 for Street Infrastructure
- $0.1637 for Debt Service.
No changes were proposed to the city’s existing exemptions, including the 20 percent homestead exemption. The second reading and adoption of the tax rate is scheduled for the Sept. 2, 2025, regular council meeting.
For more information on the city’s budget, tax rate, or TIRZ assistance programs, residents can visit cosatx.us.
