Richardson council adopts FY2026 budget, sets property tax rate at $0.54218

The Richardson City Council on Monday adopted the city’s fiscal year 2026 budget and approved a property tax rate of $0.54218 per $100 of assessed valuation, following a public hearing with no members of the public speaking.

City Manager Bob Magner presented the budget as the final step in a yearlong process and said the package ties together general fund, enterprise and restricted funds. "People being our number one priority," Magner said while describing proposed merit increases, public safety investments and capital projects.

Magner told the council the proposed total budget figure was presented as "$418,000,000 $498,278" in the materials and highlighted a $181.5 million general fund. He said 83 percent of general-fund revenue is expected from property taxes, franchise fees and sales taxes. Magner described revenue changes that include a roughly $750,000 decline in interest earnings, a roughly $500,000 revenue increase from an Addison jail contract, and a roughly $260,000 negative impact from a change in state law that limits franchise fees on streaming services.

On the expenditure side, the council-approved budget funds pay increases and recruiting in public safety (including eligibility for up to a 4.5 percent merit increase for sworn public-safety employees and step increases for sworn and quasi-sworn positions), adds 12 apprentice firefighters and funds replacement vehicles and equipment for fire and police, including two ambulances and 13 replacement patrol vehicles. Magner also noted a long-term commitment for a new training center in partnership with the City of Plano beginning in FY27.

Enterprise funds and fee changes approved as part of the package include a 6 percent increase in both water and sewer rates; Magner said that amounts to most of an approximately $120 million water and sewer fund and that buying and treating water and sewer account for about 63 percent of that fund’s expenditures. The solid waste fund includes residential collection adjustments (a 50-cent-per-month residential increase described in the presentation), and the drainage fee will rise by $1 to $6.25 per month, with the council directed that all of the proposed drainage fee revenue be dedicated to capital drainage projects rather than operations.

Council actions and votes at a glance

- Close public hearing on the proposed FY2026 operating budget — motion by Mayor Pro Tem Hutchinrider; second by Council Member Shamsul; outcome: passed unanimously.

- Adopt ordinance approving and adopting the FY2026 budget for most city services (motion excluded wellness services, immunizations, employee shots, and Methodist Richardson Medical Center Foundation event sponsorship/advertising) — motion by Mayor Pro Tem Hutchinrider; second by Council Member Shamsul; outcome: approved unanimously (7–0).

- Adopt ordinance approving and adopting the FY2026 budget for wellness services, immunizations, employee shots and Methodist Richardson Medical Center Foundation event sponsorship/advertising — motion by Council Member Dorian; second by Council Member Corcoran; outcome: approved (6–0) with one abstention recorded earlier by the council member who stepped out for conflict of interest.

- Adopt ordinance levying ad valorem taxes for 2025 at $0.54218 per $100 assessed valuation — motion by Council Member Shamsul; second by Council Member Corcoran; outcome: approved unanimously (7–0).

- Ratify the property tax increase reflected in the adopted budget for FY2026 — motion by Council Member Corcoran; second by Council Member Shamsul; outcome: approved unanimously (7–0).

- Approve budget consent agenda as published — motion by Council Member Justice; second by Mayor Pro Tem Hutchinrider; outcome: approved unanimously.

What the budget would mean for a typical taxpayer, as presented

Magner said the package would increase typical household annual costs by a combined amount he described as about $237 year over year, broken down in the presentation as about $127 in additional property taxes, $61 in water, $29 in sewer, $12 in drainage and $8 for residential solid-waste service. He said some figures were smoothed over a two-year view to respond to rate increases the city is seeing from wholesale providers, particularly the North Texas Municipal Water District.

Why it matters

Council adoption finalizes the city’s spending plan and tax levy for the year that starts Oct. 1, 2025. The measures include both near-term operating choices (merit pay, starting-wage adjustments and equipment purchases) and multi-year commitments (capital projects, a long-term training center partnership and funding set aside for strategic pay plan adjustments). Several council members asked staff clarifying questions during the hearing, and no members of the public registered to speak before the council closed the hearing.