Wichita Falls council adopts FY2026 budget, sets property tax rate at 0.6825

Wichita Falls — The Wichita Falls City Council on Sept. 2 adopted the city’s fiscal year 2026 budget and set the property tax rate at 0.6825, actions city staff said lower the nominal rate from 0.6848 while funding salary increases and capital projects.

City staff member Steven, presenting the budget at a public hearing, said: “This budget reduces the property tax rate, from 0.6848 to 0.6825,” and described a capital program that uses reserves for one-time investments including public safety facilities. Mayor Tim Short and councilors then voted to adopt the ordinances that finalize the budget, levy the rate and approve a five-year capital improvement plan.

The adopted budget covers the fiscal year beginning Oct. 1, 2025, and ending Sept. 30, 2026. In separate motions the council: adopted the annual appropriation ordinance; approved a tax-rate ordinance adopting the 0.6825 rate; and approved a resolution that staff read stating the adopted budget will raise more total property taxes than last year by $1,754,382 (a 3.39% increase), of which $486,514 is attributable to new property added to the tax roll this year.

Why it matters: City staff said the budget reduces the city’s nominal tax rate while allowing pay increases for employees and a $45,800,000 capital expenditure program. The actions will affect property owners through the combination of the adopted rate and changes in taxable values, and will fund immediate investments in public safety facilities and other capital projects.

Most important facts

- The council adopted the FY2026 budget (effective Oct. 1, 2025) and an ordinance appropriating the associated amounts. The motion carried. - The council set a property tax rate of 0.6825 by recorded motion; councilors recorded as voting “aye” during the roll call included Councilor Cobb, Councilor Fleck and Councilman Browning. The resolution language presented to the public described the adopted rate as “effectively a 2.97% increase in the tax rate” per the motion language used at the meeting. - City staff said the budget commits $45,800,000 for capital expenditures and uses some reserves for one-time investments in public safety facilities. - The council approved an ordinance ratifying that the adopted budget will raise more total property tax revenue than last year by $1,754,382 (3.39%), and that $486,514 of that amount is from new property added to the tax roll.

Details and context

At the public hearing, city staff reiterated the statutory calculations required under state property-tax law, including the “no new revenue” rate (staff stated that number as 0.662791) and the voter-approval rate (0.708873). Steven told the council the proposed rate is lower than the current rate and remains below the voter-approval threshold. When Council members asked about long-term sustainability and pending state legislation commonly called SB10, staff said the city is monitoring that legislation; under one version discussed in the meeting, the voter-approval threshold could be reduced and different versions include different caps and exceptions for public safety.

Mayor Tim Short said the city is “in excellent financial shape allowing us to responsibly lower this rate,” to which city staff agreed. Staff also noted the city calculates a levy-per-capita measure that staff presented as about $512 per resident.

Council action: The meeting record shows motions and seconds were made for the budget and tax-rate ordinances. One motion on the tax rate included the statement “I move that the property tax rate be increased by the adoption of a tax rate of 0.6825, which is effectively a 2.97% increase in the tax rate.” The council then voted and the motion passed. On the revenue-ratification item, a motion stated the adopted budget “will raise more total property taxes than last year’s budget by $1,754,382 or a 3.39% increase,” and that motion passed.

What staff and council said about risks

- Staff cautioned that future budget years could be affected by state legislation, changing market conditions and the loss of debt obligations that previously lowered debt service needs; staff recommended continued attention to fiscal sustainability. - Staff said some capital items in the five-year plan (years after the first fiscal year) depend on future funding availability; the first year of the CIP aligns with the adopted budget.

Next steps and timing

- The FY2026 budget and associated ordinances take effect at the start of the fiscal year on Oct. 1, 2025. The council also approved a five-year capital improvement plan through Sept. 30, 2030. Staff said they will post presentation materials and budget slides to the city website for public review.

Sources: Public hearing and council deliberations at the Sept. 2, 2025 Wichita Falls City Council meeting.