The Llano City Council held the first of two public hearings on the fiscal year 2025–26 property tax rate on June 26, 2025, as residents urged the council to reconsider proposed increases. Public commenters said raising rates risks driving residents away and that lower rates could attract new residents and development.

Resident Jed Arnold, who identified himself during public comment, said the city should “look for some other solutions” to rising costs and avoid steps that might reduce the city’s appeal. “If we lose population, it doesn't matter how high you increase the taxes, you're gonna get lower tax revenue,” Arnold said during the hearing. He also urged council to seek ways to keep utility and tax rates lower to draw new residents and developers.

Another resident addressing the council said the proposal to raise the rate to just below the voter-approval threshold “looks suspicious” and called for the council to consider temporary cuts to the budget rather than a near-term tax increase. The commenter argued that lowering rates could expand the city’s tax base over time by encouraging homebuilding and business investment.

Mayor Ted and council members opened the hearing and listened to public comment; council did not adopt a final rate at the session and described the hearing as the first of two required hearings. No formal vote on the tax rate was recorded at this meeting. City staff indicated additional information and further work on the rate proposals remain necessary before a final decision.

The hearing followed broader budget discussions at the meeting, where the city manager presented a proposed operating budget and identified gaps and trade-offs between capital projects, staffing, and utility rates. Council members asked for more time and a budget workshop before making final rate decisions.

The council will hold a second public hearing before any final vote on the FY2025–26 property tax rate; no date for that vote was set during the meeting.