09/19/2026
FY 2026–2027 Budget and Tax Rate Update: What Council Actually Did
Over the last few days, many opinions have been shared about the City’s budget. Some of the discussion has included name calling and statements about what Council should have done.
Residents deserve the facts. Below is what Council actually did; we reduced proposed spending, lowered the proposed tax rate, and preserved important investments in Nederland’s infrastructure and public safety.
The original proposal included a tax rate of approximately $0.474 per $100 of taxable value. I believed we needed to take another look at the numbers and reduce the proposed increase without abandoning critical investments in streets, drainage, water infrastructure, public safety, and essential equipment.
After questions from Council and additional work by City Manager Manny De La Rosa, Finance, department heads, and staff, the proposal was revised.
The major changes included:
* Approximately $1.23 million removed from the earlier General Fund proposal
* Water meter funding reduced from $937,500 to $500,000, a reduction of $437,500 while allowing replacements to continue
* The Street Department proposal reduced from approximately $3.02 million to $1.554 million
* The proposed tax rate lowered from approximately $0.474 to $0.466
* The anticipated increase in property tax collections reduced by approximately $149,500, or about 37%, from the earlier proposal
Altogether, approximately $1.67 million in proposed spending was removed from the earlier General Fund and water meter proposals.
At the same time, the final budget maintains $1.375 million specifically for street improvements, along with major investments in public safety, water and sewer infrastructure, parks, and essential equipment.
I also want to be clear that the adopted $0.466 tax rate is still 1.5 cents higher than last year’s $0.451 rate. I supported the final plan because I believe it represents a more responsible balance between reducing the original proposal and addressing needs Nederland can no longer afford to postpone.
I appreciate Councilmembers Britton Jones and Randy Sonnier for sharing their concerns and perspectives with me. I also appreciate Councilmember Curtis Stratton’s successful effort to redirect $40,000 from a City Hall vehicle to improvements at our animal shelter.
I thank City Manager Manny De La Rosa, Finance, our department heads, and City employees for working through these changes. This was a team effort, and no one person should claim sole credit.
People may disagree with the final decision, and I respect their right to do so. However, the facts should be clear - Council did not simply accept the original proposal. We questioned it, reduced proposed spending, lowered the proposed tax rate, and preserved funding for important services and infrastructure.
The budget has been adopted, but our responsibility is not finished. I will continue monitoring spending, fund balance usage, water meter replacement, street projects, and capital purchases to make sure taxpayers receive measurable results.
We reduced the original proposal and moved forward with what I believe is a more responsible plan for Nederland.
Thank you,
Jeff Ortiz
