Beaumont council adopts FY2026 budget, keeps property tax rate unchanged

The Beaumont City Council adopted a fiscal year 2026 operating budget and set the city's property tax rate at 0.659663 per $100 valuation at a Sept. 16 meeting, keeping the headline tax rate unchanged while approving pay increases for public safety and one-time capital purchases. The council also approved a capital program and the city's master fee schedule.

City Manager Brandon Williams told the council the budget "is a balanced budget" and highlighted several changes made after council feedback, including a plan to preserve a larger fund balance and a freeze on senior citizen residential water rates. Williams said staff reduced expenditures by about $3.1 million after council input, increasing the general fund balance to $41,722,082.

The adopted tax rate breaks down to a maintenance-and-operations rate of 0.478628 and a debt service rate of 0.181035 per $100 valuation. Council members recorded votes for the budget, capital program and tax-rate ordinance during the meeting; each motion passed on recorded votes with all present members voting in favor.

Nut graf: The budget vote preserves city services and funds planned capital needs while responding to council direction to grow reserves and limit costs the public would directly feel. Council and staff framed the adopted plan as a compromise between one-time capital spending, personnel costs and a desire to maintain a healthy reserve.

Most important items: the budget keeps the overall tax rate steady and funds a compensation step for city employees and phase 3 of a compensation study, with an across-the-board civilian cost-of-living adjustment and larger increases negotiated for sworn public-safety labor. Williams told the council the budget incorporates a third year of compensation study adjustments and a 3% civilian cost-of-living adjustment, while the police and fire pay packages account for a multi-million-dollar increase in wages and benefits.

Supporting details: Williams said the general fund balance will be 25.7% under the adopted plan and that the water fund will hold higher reserves; he also said staff will finance some capital purchases to keep more cash on hand. Williams explained that a recent insurance move into the Texas Municipal League risk pool reduces the city's exposure to catastrophic losses.

Council members emphasized oversight and affordability. Councilman Turner and others said they wanted an even higher fund balance; the administration replied it had increased reserves and cut proposed one-time purchases after council feedback. Turner asked for clearer early engagement from council members on priorities so staff could avoid presenting large one-time spending items that the majority would later ask to cut.

Action and outcome: The City Council voted to adopt the FY2026 operating budget, to adopt the FY2026 capital program, and to adopt the tax rate and related ordinance. The votes were recorded in roll-call format and each motion carried.

Ending: Staff said the budget is a guideline to be managed throughout the fiscal year and that directors will continue to monitor hiring, overtime and other expenses to keep actual results in line with the adopted plan.