Tyler council adopts FY2026 budget and sets property tax rate; approves fee changes

The Tyler City Council adopted the fiscal year 2026 annual budget and approved an associated property tax rate ordinance during its Sept. 10 meeting, city staff said.

City staff presented the proposed budget at the council meeting, outlining investments in public safety equipment, infrastructure, park improvements and personnel. The council voted to adopt the budget and to ratify a tax increase reflected within it.

City staff summarized key elements of the adopted budget: $17,000,000 in capital projects for water, wastewater, streets and stormwater infrastructure; funds for the fourth year of the Axon replacement program and a fire-department self-contained breathing apparatus lease; continued funding for the substandard-structure demolition program; updates to the animal services facility; and park and Rose Complex improvements, including a stamped-concrete bed replacement and an updated holiday-decorations master plan. The budget includes a 3% base pay increase for civil-service staff and up to 3% increases for non-civil-service staff based on evaluations.

The council approved a proposed property tax rate of 0.236452 (23.6452 cents per $100 of valuation). Staff said that rate is lower than the current rate of 24.0085 cents per $100 valuation but higher than the “no-new-revenue” rate that would generate the same revenue as the prior year. Councilmember Winn moved to adopt the tax rate ordinance; Councilmember Curtis seconded, and the motion carried on a roll-call vote. Staff also requested ratification of the tax increase reflected in the adopted budget; that motion was made and carried.

The proposed budget includes a regulatory compliance fee increase to pay debt related to federally mandated projects under a 2017 EPA consent decree. Staff said the implementation will be split into two phases: the first phase increases the fee from $19.70 to $22.94 effective Oct. 1, 2025; staff said a second phase will take effect in January but the meeting did not specify the exact January date.

Staff also proposed fee changes for city-facility rentals: implementing a fee for the library’s Taylor Auditorium of $100 per hour for private use and $50 per hour for nonprofit use, with a two-hour minimum; and various rental-fee adjustments at the Rose Garden Center to reduce the tourism-fund subsidy for those events.

Councilmember Haney moved to adopt the proposed fiscal year 2026 budget and authorize the city manager to execute budgeted contracts for outside agencies; Councilmember Nichols seconded. The motion passed on a recorded vote. For the record, Councilmembers Hawkins and Marsh were absent for the roll calls noted in the meeting.

The council adopted the budget, ratified the tax increase reflected in it, and approved the property tax rate ordinance. Staff indicated that some fee-implementation details and the second phase date for the regulatory compliance fee will be finalized in subsequent administrative actions.