City Administrator Kent Minton presented a proposed FY2025‑26 budget on July 24 that would increase the city property‑tax rate from $0.46 to $0.47 per $100 of assessed value and fund water‑system maintenance, street repairs and employee compensation. Minton said a 1¢ increase would raise roughly $25 a year on a $250,000 home and that the city saw a 4% increase in appraised values in McLennan County.

The proposal includes funds pulled from reserve balances to support projects and to continue work on a sewer project; Minton said the budget would cover construction of a new sewer system segment and make “a continued investment in our people” with a 4% cost‑of‑living adjustment and other benefit changes. He also outlined capital items: proactive water‑tank maintenance, Hungry Hill road overhaul (estimated construction: about $210,000), purchase or lease of a new City Hall server, a city storage building and replacement vehicles for public works and police.

Council discussion focused on the city’s level of reserves and affordability. Council member Mr. Wiggins warned that repeated transfers from reserves could deplete savings and recommended deferring the TMRS pension plan change that would raise the city’s contribution (Minton estimated that change would cost roughly $42,000). “If we keep just using from our reserves, it’s gonna get a point that we’re not gonna have any,” Wiggins said. Other council members argued the city’s reserves—reported as about $3.2 million in unrestricted general‑fund cash and about $1.6 million in water funds—are adequate to cover some one‑time costs and that competitive pay is necessary to retain employees.

Residents and council members asked for more detailed line‑item information. Minton said the council had the detailed budget packet and that the August 4 budget workshop would present itemized quotes and vendor proposals, including specific costs for the parking‑lot refresh, the storage building and vehicle purchases. Minton also noted two grants: a $500,000 CDBG award accounted for in the revenue/expenditure schedule and a pending $300,000 GLORCP grant for a comprehensive plan, zoning and subdivision ordinance update.

On July 24 the council formally approved a proposed tax rate of $0.47 per $100 valuation so the city could meet state deadlines for public notice and hearings; Minton and staff said final adoption of the rate and the budget would occur at the August 18 public hearing after the August 4 workshop. Councilors asked staff to return with more precise cost estimates for key items and to consider whether the TMRS change or a smaller employee increase would better protect reserves while addressing retention.