Argyle council adopts FY2026 budget, keeps tax rate stable but ratifies revenue increase

The Argyle Town Council on Sept. 15 adopted the town's fiscal year 2026 budget and approved a property tax rate of $0.3431 per $100 of taxable valuation, a measure council members said keeps the rate effectively the same while acknowledging increased tax revenue resulting from local growth.

Mayor and council adopted Ordinance 2025-35 approving the FY2026 budget and Ordinance 2025-36 levying the tax rate. After adopting the tax rate the council passed Resolution 2025-45, a required state step to ratify any increase in property tax revenue from the previous year.

Why it matters: Council members said the budget preserves strong reserves while shifting money into capital projects the town has planned, including a planned police facility and street improvements. Councilmember Martin Bridal and other members emphasized a continued review and the possibility of budget amendments later in the year.

Council discussion and context Mayor and staff summarized the budget package and how it charts resources for town priorities. Town staff said the FY2026 plan transfers funds from the general fund to capital accounts, including $500,000 toward a town center/police department building and $1,750,000 in street improvements. Town staff reported a projected combined fund balance of about $21.7 million at the end of FY2026 and said a projected $719,000 will be added to reserves in the coming year.

During discussion, councilmember Martin Bridal — who the mayor earlier named as "council member of the month" — said he would adopt the budget now with the expectation of returning in December with recommended amendments after more review. "I'm going to challenge Mike to work with me going forward," Bridal said, referencing staff, adding he intended to propose targeted changes after additional study.

Town staff (referred to in the meeting as Mike) said the budget keeps the town on course and that the slightly lower rate (from 0.34311 to 0.3431) produces modest savings per taxpayer while planned borrowing raises the interest-and-sinking component. On the required language that accompanies the tax ordinance, staff explained that state rules sometimes require wording that the "property tax rate be increased" even when the intent is to hold the rate steady; that wording reflects technical calculations tied to growth and new value under Texas Tax Code procedures.

Votes at a glance - Ordinance 2025-35 (Adopt FY2026 budget): Motion made and seconded; roll call vote recorded as Places 1'5 all "Aye." Outcome: approved. (budget_adoption) - Ordinance 2025-36 (Adopt tax rate 0.3431 per $100): Motion and second; roll call recorded as Places 1'5 all "Aye." Outcome: approved. (ordinance_adoption) - Resolution 2025-45 (Ratify property tax revenue increase): Motion and second; voice vote recorded as "ayes have it." Outcome: approved. (resolution)

What council members said Councilmember Stewart urged caution about the public perception of higher taxes and asked for continued efforts to find savings; Mayor and others noted the town's plan emphasizes capital projects funded from reserves and transfers described in the budget. A council member asked that staff return in December with specific recommended amendments to line items where additional efficiencies might be possible.

What happens next Councilmembers authorized the budget and directed staff to continue reviewing line items and come back with proposed amendments in December. The tax-rate adoption and the ratification resolution complete the two-step state-required process for approving the tax rate and any revenue increase from prior year growth.

Ending Council members said the town remains well-funded to deliver planned projects while staff and council will continue to examine the budget for additional savings or re-prioritization.