City Manager presented the proposed $219,300,000 fiscal 2026 budget to the City Council on Aug. 13 and asked the council to schedule public hearings and later consider final adoption. "This budget is a product of months of collaboration, careful planning, and a shared commitment to fiscal responsibility," the City Manager said during the presentation.

Why it matters: The proposed budget funds core city services — public safety, streets, parks, water and wastewater — and would be supported by a proposed property tax rate the council is using for publication and public notice.

The manager said public safety is the largest share of the general fund and highlighted specific investments in the Tyler Police Department and Fire Department. The budget includes $523,768 for the fourth year of the Axon replacement program for police body cameras and tasers, continued funding for the ninth year of the fire department's self-contained breathing apparatus lease, and capital investments for parks and streets.

Key budget figures and near-term actions: The proposed property tax rate for FY2026 is 23.6452¢ per $100 of assessed value, down from the current 24.0085¢ rate but 3.5% higher than the no-new-revenue rate of 22.8305¢. City staff estimated that adopting the proposed rate would generate about $1,700,000 more than last year. The council voted to schedule two public hearings on the proposed budget and tax rate for Aug. 27 and Sept. 10 and to place adoption of the tax rate and budget as action items on the Sept. 10 meeting agenda (motions passed).

Selected program and fee details noted in the presentation: $802,500 for Golden Rose Park upgrades; $500,000 to rehabilitate the old fairgrounds for event space; almost $2.5 million budgeted for street maintenance including about $1.5 million for seal coat and crackseal and $870,000 for brick street repairs; $165,000 for alley maintenance; $768,000 for capital projects with approximately $500,000 for drainage and erosion repairs; $15,300,000 in cash-funded water and wastewater capital improvements including service line replacements and upgrades at the Lake Palestine water treatment plant. The manager also described a plan to convert one part-time downtown ambassador to full time, add two stormwater crew members, and implement the final phase of a 2023 compensation plan.

Utility and fee changes: The presentation proposed a two-step increase in the regulatory compliance fee on utility bills to help pay debt tied to federally mandated projects under the 2017 EPA consent decree: from $19.70 to $22.94 effective Oct. 1, 2025, then to $26.79 effective Jan. 1, 2026. The city also proposed a rental fee for the library's Taylor Auditorium ($100 per hour for private use; $50 per hour for nonprofit use; two-hour minimum) and various rental fee adjustments at the Rose Garden Center.

Council process and timeline: Per state statutes governing budget and tax-rate adoption, staff recommended the council adopt a proposed rate for publication and set two public hearings; the council voted to schedule the hearings for Aug. 27 and Sept. 10 and to put the final adoption on the Sept. 10 agenda. Councilmembers who moved and seconded the motions included Councilmember Haney (mover) and Councilmember Curtis (second) for the hearing schedule, and Councilmember Curtis (mover) and Councilmember Nichols (second) for placing adoption on the Sept. 10 agenda; both motions passed by voice vote.

What the council did not decide: The council did not adopt the final tax rate or budget on Aug. 13; those items remain scheduled for public hearings and future action as noted.

Additional context: The manager encouraged public input on the Tyler Tomorrow comprehensive plan and identified sales taxes and property taxes as major revenue sources (staff projected sales tax will fund about 44% of general fund services and property taxes about one-third). Funding sources and detailed program breakdowns were shown in the presentation and will be part of the public hearings.

Next steps: Public hearings on Aug. 27 and Sept. 10; final consideration and potential adoption during the Sept. 10 City Council meeting.