Denison reviews FY26 budget options, considers 1¢–6¢ property tax increases to cover shortfalls

Denison City Council met for a budget workshop to review preliminary Fiscal Year 2026 financial projections and options to raise the city property tax rate between 1¢ and 6¢ to cover operating shortfalls, support street and park maintenance, and address rising utility and equipment costs. Staff noted the preliminary general fund reserve would fall below the council’s target for FY26 and outlined which services each incremental penny would support.

Laurie, staff member and budget presenter, said the general fund is projected to end FY25 with about 61 days of reserve and if current projections hold the preliminary FY26 budget would end with roughly 56 days—below the city’s reserve requirement. “We are looking at ending with 56 days of reserve, which is below our reserve requirements,” Laurie said, adding that the presentation also shows transfers into the general fund and items that remain unfunded.

The nut graf: The council spent the workshop asking staff questions about how specific revenue and transfer sources would be applied and how much each additional penny would generate. Staff emphasized that the council must decide a final rate before budget adoption in mid-September, but that an interim change may be legally possible between the council’s September 2 meeting and the Sept. 15 adoption date.

Most important items and projected costs

Laurie outlined key cost pressures the budget must absorb. Major drivers include a…