Mineral Wells staff outline budget that holds tax rate but warns of utility rate increases

City staff on Tuesday presented a proposed fiscal year 2025–26 budget that would keep the city’s property tax rate at the voter-approval rate of $0.5717 per $100 in assessed value and maintain the general fund’s reserve above the city target, while warning of increases in utility bills tied to water and wastewater debt and projects.

The presentation, given by city staff during the council’s Sept. 2 meeting, said the general fund’s proposed fund balance is 30.9 percent (about 111 days) compared with 28.8 percent (about 104 days) at an August review. The water and sewer fund’s projected fund balance rose to 26.8 percent from 17.8 percent, the staff presentation said.

Those improvements follow staffing reductions and other adjustments staff said together saved roughly $384,280, plus additional savings from frozen hires of about $224,000. Staff also identified about $331,000 in payroll-related adjustments for reorganized positions, and indicated net “decision package” spending of roughly $3 million from the prior fiscal cycle that reduced available reserves.

Why it matters: the council must adopt a budget and ratify a property tax rate at a public hearing scheduled for Sept. 16; changes made after that…