Bay City adopts FY2026 budget, ratifies property tax increase and lowers tax rate to 0.55772

The Bay City City Council on Sept. 23 approved the city’s operating budget for fiscal year 2026, ratified the property tax increase reflected in that budget, and adopted a tax rate of 0.55772 per $100 of assessed valuation.

City staff presented the ordinance to adopt the fiscal 2026 operating budget and said the general fund totals approximately $2,020,500,000.00 (as described during the staff presentation). Council passed the ordinance adopting the budget by voice vote; no amendment was made on the council floor.

Under separate motions the council ratified the increase in property tax revenue required by the budget under Texas law. The council then adopted an ordinance setting the tax rate at 0.55772 per $100 — a rate the city described as lower than the prior year rate of 0.56916. The ordinance breaks the rate into a maintenance and operations component of 0.40542 and a debt service component of 0.12273.

Council members cast voice votes and then participated in a roll call confirming adoption. Mayor Nelson and multiple council members voted in the affirmative; Councilman Westmoreland was absent. The council did not change the proposed rate during debate and there were no recorded no votes in the public record segment of the meeting.

The council also approved a five‑year capital improvement program (CIP) resolution; staff emphasized that only year one of the CIP is budgeted and years two through five are planning projections. The CIP was adopted by resolution without changes and is available on the city website, staff said.

There were no additional formal actions recorded coming out of the council’s executive session.