Mineral Wells council adopts $58.5 million FY2026 budget, keeps tax rate steady at voter‑approved level

The City of Mineral Wells on Monday adopted its fiscal year 2025–26 budget and related fiscal measures, approving a proposed budget that staff said totals about $58.5 million across all funds and retains the voter‑approved tax rate of 0.5717881 per $100 of assessed value.

City Manager Weeks presented the budget and said the proposal emphasizes customer service, communication, transparency and financial sustainability while responding to near‑term cash pressures. “We added financial sustainability to our core values,” Weeks said during the presentation.

The adopted budget funds the general fund, water and sewer, airport and other city funds. Highlights included 8 new positions citywide (four in the general fund, three firefighters/paramedics proposed through a SAFER grant, and three technicians in a new water crew), continued funding for street maintenance ($900,000 programmed) and a mix of one‑time capital purchases such as park improvements and equipment. Staff reported the general fund estimated fund balance would end the fiscal year above the city’s 25% target but cautioned long‑term projections show a decline without continued adjustments.

Councilors held a separate, required vote to ratify the budget’s increase in property tax revenue under Texas Local Government Code Sec. 102.007. The cost estimate to a homeowner with an average assessed value cited in the presentation was about $21–$22 in city‑only property tax for the year.

On utilities, staff reported a limited number of customers would see meter‑size based water fee changes: a 1‑inch meter monthly charge would rise from $108.42 to approximately $109, and a 1½‑inch meter from $213.64 to $216, effective Nov. 1 if adopted. The presentation also noted a sewer rate increase recommended by a consultant — a 5.1% increase for most residential customers (about $0.77 monthly) — and a separate commercial/industrial surcharge change (handled by separate resolution) to better allocate wastewater treatment costs to higher‑strength dischargers.

Related to water infrastructure financing, council approved a resolution formally requesting the return of $8,000,000 that the council previously provided to Palo Pinto County Municipal Water District No. 1 to fund the reverse osmosis (RO) plant. Staff told the council that returning the cash will let the city issue debt for the RO project and preserve the city’s water‑and‑sewer fund cash reserves; the city’s financial advisers and bond counsel are preparing a debt issuance and a reimbursement resolution for the RO project. Staff said the city’s pro forma shows debt‑service coverage above the 1.25 target (reported as about 1.37 under the FY26 budget assumptions).

The budget ordinance passed on a record vote and the accompanying property‑tax ratification carried unanimously with the council members present voting in favor.