ASHLEY TERRY
The city of Azle is on better financial footing than initially projected.
After months of budget planning, city officials announced July 21 the proposed fiscal year 2026-27 budget is balanced and on the path to approval despite early projections of a budget deficit.
Budget workshops this summer estimated the city could face a $3.1 million budget shortfall due to a decline in property tax revenue and a major increase in operating expenses. But Mayor Randa Goode confirmed that after various discussions and planning, the city is actually in a much better position.
“Just to be clear, I know there’s a lot of stuff going on Facebook … but we do not have a deficit; that was just our beginning point,” Goode explained during last week’s Azle City Council meeting. “We’re actually, at this time, in the black.”
Officials first began discussing the budget in June, when staff realized that — just like many communities across Texas — Azle was experiencing rising operating costs that were projected to outpace revenue growth. Specifically, projections in the city’s general fund — one of 20 separate funds managed by the city — showed that officials would have to make changes to balance the budget.
The general fund is the city’s primary operating fund and pays for essential day-to-day services such as police, fire/EMS, streets, parks, the library, animal services, planning, municipal court and general city operations. Since city staff know their department’s individual needs best, officials asked each department head to submit a proposal identifying 20% in potential budget cuts.
City leaders worked to close the projected budget gap during a series of public budget workshops held June 16 and June 30, as each department head proposed what they would be willing to cut from their budget, if needed. Suggestions ranged from a hiring freeze and reducing overtime to delaying capital projects and cutting back on nonessential training.
“Throughout the budget development process, city council and staff worked collaboratively together to develop a balanced budget while maintaining essential city services,” City Manager Amber Beard told staff during the meeting. “I would just like to thank council and staff for your hard work and figuring out this next year. I know that with rising operational costs outpacing revenues, it was challenging, but I’m very proud of our team and us working together to get where we are.”
Although the proposed budget is now available for both the public and staff to review, Goode explained that there’s still plenty of work to be done on the council’s end before finalization.
“I think everyone did a really good job,” Goode said. “There’s some things that we do need to add back in there (the budget), but we’ll do that cautiously.”
The budget process will continue over the next several weeks, with council set to consider the proposed property tax rate Monday, Aug. 3, followed by public hearings on the proposed budget and tax rate Monday, Aug. 17 before adoption Monday, Aug. 24.
The city’s proposed fiscal year 2026-27 budget has been filed with the city secretary and is available for viewing on both the city’s website and the July 21 council agenda.
