Terrell approves FY26 budget, keeps tax rate at 76.42¢ after debate over police and fire pay

The Terrell City Council on Aug. 29 approved an amended fiscal year 2025 budget, adopted the proposed fiscal year 2026 budget and set the city property tax rate at 76.42¢ per $100 valuation during a special meeting and workshop at City Council Chambers.

The council’s budget vote approved Ordinance No. 3136 (amending FY24–25 and adopting the FY26 budget) and the council later ratified property-tax actions that set the maintenance-and-operations rate at 58.42¢, the interest-and-sinking rate at 18¢ and the combined tax rate at 76.42¢ (Ordinance No. 3140). Council members chose an option in the budget package that staff said was intended primarily to increase police and fire pay and to reduce compensation compression for civilian employees.

Brian Lancaster, a reserve police officer, urged the council to raise compensation to address staffing shortages. Lancaster said, “the very first thing we look at as officer is what am I gonna have to feed my family at the end of the night?” He told the council that Terrell faces a staffing crisis in the police department and that improved pay would help recruitment and retention.

Mark Mills, identified in the meeting as the budget director, presented the packet and compensation scenarios and described five pay…