Borger council introduces 0.606807 combined tax rate, schedules final vote Sept. 2

Borger City Council on Aug. 19 unanimously introduced on first reading an ordinance to set a combined tax rate of 0.606807 per $100 valuation for fiscal 2026 and scheduled final action and a public hearing on the tax rate and the fiscal 2026 budget for Sept. 2 at 6:30 p.m.

City Manager Garrett Spradlin told the council the proposed rate reflects the council’s long-term direction to limit property tax revenue growth and that the city is adopting the ‘‘no-new-revenue’’ approach this year. Spradlin said the freeze-adjusted certified property tax value for 2025 is $510,646,850 and reminded residents the city granted a 20% homestead exemption last year.

The proposed combined rate breaks down to a maintenance-and-operations (M&O) rate of 0.4634 and an interest-and-sinking (I&S) rate of 0.1434. Spradlin said the rate is 0.049838 lower than the previous year’s rate and that the city has reduced its combined tax rate by roughly 26 cents since 2020.

Spradlin said that, under the city’s approach, total general-fund property tax revenue for M&O is projected at $2,422,301 for fiscal 2026. "We are not taking more tax money. We are taking less tax money," Spradlin said during the presentation.

The city manager walked council members through how the homestead exemption and freezes for seniors, disabled residents and qualified veterans affect the tax calculations and how new property on the tax roll (new construction) is treated separately from the no-new-revenue computation. He also outlined the city’s ‘‘foregone revenue’’ figures — amounts the city could have raised in prior years had it adopted higher rates — noting staff and council have purposely limited rate increases in recent years.

Council members introduced the fiscal 2026 operating budget on first reading and approved sending the budget to a public hearing on Sept. 2. Spradlin said several enterprise and capital funds will remain presented as financial plans rather than ‘‘legally adopted’’ budgets to avoid audit complexities under Government Finance Officers Association practices; he said those funds remain subject to city policies and council oversight.

The council also introduced an ordinance amending the city fee schedule, including a 50-cent solid-waste fee increase tied to the city’s contract with a regional provider and a last recommended sewer base-rate increase under the 2022 rate study (from $21 to $23.25 per month). Spradlin said next year no rate increases are planned under the current study.

Final action on the tax rate and budget will be taken at the Sept. 2 meeting; the council and staff said they will hold the public hearing and provide additional presentation materials in the intervening meeting.

Spradlin and staff said the city’s debt policy and five-year capital improvement plan will guide any future debt issuances; he noted the city seeks to use debt strategically for long-lived assets and to maintain its credit standing.

No public speakers addressed the tax rate during the Aug. 19 hearing.