Odessa council freezes proposed water, sewer and solid-waste rate increases and adopts FY 2025–26 budget

The Odessa City Council voted Tuesday to hold water, sewer and solid-waste rates at current levels and adopted the city's fiscal year 2025'26 annual budget with adjustments to fund balances. Council members said the decisions were intended to reduce immediate costs for residents as the proposed budget reflects a rise in property-tax revenue. "We hear you. We hear you," Mayor Hendry told residents, explaining the council was responding to citizen concerns about tax increases. The council first considered an ordinance that would have raised each utility category by 1.5 percent. Kaylee, a city staff member who read required budget language on the record, told the council the proposed 1.5 percent water increase was included in the draft budget and that opting out of it would forgo $794,795 in revenue for water. She said the combined revenue not collected from water and sewer at 1.5 percent would total about $1,069,812.23; not moving forward with the 1.5 percent solid-waste increase would leave out roughly $284,183.24. After brief discussion, the council approved motions to set each utility rate increase at 0 percent instead of 1.5 percent. Councilman Thompson moved to approve a 0 percent change for water; the motion passed unanimously. Similar unanimous votes followed for sewer and solid waste. Council members and staff noted the action reduced projected utility revenue but said maintaining current rates was a priority this year. With the rates set at 0 percent, the council then considered adoption of the annual budget. Kaylee explained the out'of'order discussion of rates was to ensure the final budget reflected the council's decisions on utility revenue. Councilman Thompson moved to adopt the FY 2025'26 budget as presented with the specified adjustments to water, sewer and solid-waste fund balances; the motion passed unanimously on first reading. The council also noted other budget actions taken earlier in the meeting, including a formal ratification of increased property-tax revenue required under state law; Kaylee read the statutorily required language on the record. Mayor Hendry and council members emphasized the council's effort to be fiscally conservative while recognizing pressures from other taxing entities. The budget adoption and the decision to freeze utility rates mean the city will enter the fiscal year with lower projected utility revenues and adjusted fund balances; staff said they will continue to monitor fund health and report back to the council. The council approved the measures by unanimous votes; no roll-call dissent was recorded.