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Southlake council adopts FY2026 budget, lowers tax rate to 0.295 and authorizes purchases; several votes split 5-2
Summary
The council adopted the fiscal year 2026 budget and associated tax ordinances and authorized purchases. The council approved budget ordinance 1296 (5-2) and a tax levy ordinance setting the rate at 0.295 (5-2). A purchases resolution passed 7-0.
The Southlake City Council adopted the fiscal year 2026 budget and related tax measures at its Sept. 16 meeting. By votes of 5-2 on second reading, council adopted the annual budget and approved the tax levy ordinance setting the city property-tax rate at 0.295. The council also ratified the tax increase reflected in the budget (5-2) and passed a resolution authorizing purchases for FY2026 (7-0).
City staff described the budget as the product of a months-long process of departmental zero-based reviews and workshops. Director Sharon Jackson summarized that the proposed tax rate of 0.295 represents a one-cent reduction from the prior rate of 0.305, and city leaders said it would be the lowest city property-tax rate in Southlake in 40 years. The council's action also preserves an estimated $8 million in homestead exemptions under state law, as staff presented it.
City Manager Orkowski highlighted near-term implementation steps: adoption of the fee schedule in October, updates to utility and stormwater infrastructure plans, and continuing capital-improvement planning that will culminate in a five-year capital program. He also said the city is concluding a substantial real-estate acquisition to increase park and green space; staff said details will be released after closing.
Councilmembers praised staff work and noted Southlake's financial position, including reduced debt, reserves, and sales-tax strength. As required by state law, the council took the votes in sequence: budget adoption (Ordinance 1296) passed 5-2; tax levy ordinance (Ordinance 1295) adopting the 0.295 rate passed 5-2; ratification of tax revenue reflected in the budget passed 5-2; and Resolution 25-033 authorizing purchases for FY2026 passed unanimously 7-0.
Why it matters: The budget establishes city spending and revenue policy for FY2026, sets the city's property-tax rate, and funds capital and operating programs. Staff emphasized continued investments in public safety, infrastructure planning, and a pending major green-space acquisition.
Votes at a glance (items discussed and vote results recorded in the meeting): - Ordinance 1296 (Item 6D): Adopt FY2026 annual budget and revise FY2025 figures — Approved 5-2. - Ordinance 1295 (Item 6E): Tax levy ordinance adopting a rate of 0.295 — Approved 5-2. - Item 6F: Ratification of tax rate reflected in budget (increase in total property taxes vs. last year) — Approved 5-2. - Resolution 25-033 (Item 6G): Authorize purchases for FY2026 and authorize city manager to enter contracts — Approved 7-0.
Councilmembers emphasized the staff's multi-month budget process and thanked departments for work on the zero-based reviews. The fee schedule and several department-level fee proposals will return to council for consideration in October; the city will also begin updates to its stormwater, water and wastewater plans this fiscal year.
Speakers during the discussion included Director Sharon Jackson and City Manager Orkowski; council members thanked staff for extensive preparation and outreach. The items took final action per state law and will be implemented according to the adopted financial plan.
