Hewitt council adopts 2025–26 budget, keeps property tax rate at 0.539082

Hewitt — The Hewitt City Council on Aug. 18 adopted the fiscal year 2025–26 annual operating and capital budget, approved a master fee schedule and enacted the property tax rate at 0.539082, the same as the current adopted rate.

The actions followed a workshop presentation and public hearing required by state law. Mr. Thomas, a staff member presenting the budget, said, “You will see that we have estimated revenues in the general fund of just over $17,100,000 and estimated expenses in the general fund of just over $17,200,000,” which leaves a projected ending general-fund balance of about $10.7 million before reserves.

The nut of the presentation was a multi-fund review and the staff’s recommendation that the council adopt the budget and related fee schedule. The budget package the council approved reflects a proposed cost-of-living adjustment and step increases, continued capital projects, and a debt-service increase tied to recently issued certificates of obligation.

Most important facts: the council adopted ordinance 2025-17 (the annual operating and capital budget) and ordinance 2025-16 (setting the 2025 property tax rate at 0.539082). The council also accepted the 2025 certified tax roll (ordinance 2025-15) and approved resolution 2025-06 adopting the master fee schedule. Council later voted to ratify the property-tax increase reflected in the budget as required by Texas law. Each vote on those items carried unanimously.

Key budget details presented by staff included: estimated general-fund beginning balance of about $10.8 million; proposed general-fund revenues of roughly $17.1 million and expenditures of about $17.2 million; a projected 90-day operating reserve of nearly $3.3 million; and an unrestricted general-fund balance projected at roughly $7.4 million for Sept. 30, 2026. The utility fund showed a beginning balance of roughly $6.1 million, projected revenues near $9.3 million and projected expenses of about $9.2 million, leaving an estimated unrestricted utility balance just over $4.68 million after reserves.

Staff noted a budgeted debt-service increase to about $3.36 million next fiscal year, and explained that the proposed budget includes three new firefighter positions (with a plan to delay hiring until closer to the new station opening, which staff estimated in June or July of the following year) and a 2% cost-of-living adjustment and 2% step increases. Mr. Thomas said delaying start dates for some hires would avoid carrying the full first-year personnel cost in 2025–26 and shift it to 2026–27.

The presentation also highlighted property-tax calculations and exemptions: the packet reflected 6,283 households with some form of exemption, a count of 3,714 homesteads, and an average market value and average taxable value used in the rate calculation. Staff explained the city’s certified taxable value and showed the no-new-revenue, voter-approval and de minimis tax-rate comparisons used in the council’s deliberations.

Councilmembers asked for additional follow-up briefings on a planned enterprise software consolidation for finance, human resources and utility billing; staff said a presentation is likely at the Sept. 15 meeting. The council also approved the technical master fee schedule, which included updated water and wastewater rates shown in the packet.

Ending: All budget, tax-rate and fee-schedule votes were carried without recorded opposition. The council scheduled routine follow-ups and a Sept. 15 meeting for several items including an anticipated software presentation.