Waco City Council Approves 2026 Budget Amendment Redirecting Funds to Street Repairs

The Waco City Council on July 7 passed a budget amendment that reallocates $1.4 million from the community development block grant line to the public works street maintenance account. The change directs crews to repave segments of Elm Avenue, Baylor Street and North 19th Street while ending small-business facade grants that had operated since 2023.

The amendment responds to the 2025 pavement condition survey filed with the Texas Department of Transportation, which rated 38 percent of collector streets in the affected districts as poor or failed. Council members cited rising material costs and resident complaints logged through the 311 system as reasons for the shift.

Impacts on daily travel and local services

Households along the three corridors will see crews begin work within 60 days, according to the public works schedule released after the meeting. Bus stops on Elm Avenue will gain new concrete pads, shortening walks for riders who transfer at the downtown hub. At the same time, eight businesses that applied for facade matching funds in fiscal year 2026 will receive notice that their requests are denied.

Residents east of Interstate 35 who relied on the grant program for exterior lighting upgrades will instead apply through the regular code-compliance process, which carries no direct city subsidy. City staff stated that the reallocated dollars will cover 2.1 miles of curb and gutter replacement, a figure listed in the amendment worksheet attached to the July 7 agenda packet.

Next steps for implementation

The finance department will transfer the funds by July 15, after which the streets division will issue bids for asphalt and concrete. Property owners along the selected blocks will receive mailed notices of temporary parking restrictions during construction. The community development office has scheduled an August workshop to explain alternative financing options for businesses that lost grant eligibility.