Rockwall — The Rockwall City Council opened a public hearing Sept. 2 on the proposed fiscal year 2026 budget and a proposed property tax rate of $0.2575 per $100 of assessed value, heard several hours of public comment and discussion, and set formal adoption for the council’s Sept. 15 meeting.

The proposed rate is the advertised maximum; council members and staff presented scenarios showing how different bond-issuance choices and tax-rate options affect operations and capital spending. City Manager Mary Smith told council that the budget as proposed assumes a $0.2575 tax rate and issuing $22,000,000 of a voter-approved $85,000,000 street reconstruction bond program, and that issuing that level of debt while keeping the tax rate lower would require operational cuts.

Why it matters: The council is balancing competing priorities — preserving pay and recruitment for police and fire, maintaining and rebuilding streets, and limiting the tax burden on residents. Speakers at the hearing stressed both concerns about raising property taxes and the need to fund public safety and roads.

Council members, staff and public speakers framed the debate around three broad options presented by staff: keep the tax rate at its current level, adopt the advertised rate of $0.2575, or adopt a “no-new-revenue” (NNR) rate and reduce or postpone bond issuance. According to staff scenarios, issuing the full $22 million while keeping the current rate would require roughly $925,000 in operating cuts; issuing only $9 million would reduce that pressure but meaningfully shrink bond-funded road work; issuing $5 million or less would let the council stay within the NNR rate but would fund little or no large street projects.

Public comments illustrated the split in the community. Resident Les Chapman said, “I am against any increase in, taxes.” By contrast, Captain Glenn Cathy, speaking for Rockwall firefighters, urged the council to adopt a rate that allows revenue growth, saying, “I am asking you to adopt the ones that allow the property tax rate increase this year,” and arguing that lower-than-market public-safety pay and deferred infrastructure would carry long-term costs.

Several council members emphasized the lean nature of the proposed budget. Mayor Pro Tem Moller said the proposed budget was “bare bones” and argued that the roughly $108-per-year difference for the median Rockwall homeowner between the NNR and proposed rates is small compared with the cost of deteriorating roads and underfunded services. Council Member Richard Henson said inflation is low this year and expressed preference for holding the rate steady.

Clarifying details from staff and speakers: the advertised rate is $0.2575 per $100 of assessed value; the median home value used in staff calculations was about $472,050; the difference between the NNR and the advertised rate was estimated in discussion to amount to about $108 per year for the median home; the 2018 voter-approved street reconstruction bond authorization totals $85,000,000 of which roughly $58,000,000 remains unissued; staff presented a $22,000,000 issuance scenario and alternatives ($9,000,000 or $5,000,000) with corresponding required cuts to operations.

What the council decided tonight: no formal tax-rate or budget adoption occurred Sept. 2. Council will take final action on the FY2026 budget and tax rate at its next regular meeting on Sept. 15, at 6 p.m. in council chambers. Staff will provide updated numbers and options before that meeting.

Background and next steps: Several speakers referenced past council decisions that reduced the city’s tax rate in prior years and said those choices reduced available operating revenue. Staff noted that some harbor and waterfront repairs discussed during public comment are planned to be covered by the city’s TIF (tax increment financing) fund and therefore are not part of the general fund operating budget. Council members asked staff to return with the figures needed for an informed Sept. 15 vote.