Midlothian council adopts $67.7 million budget, keeps tax rate at 65¢ and ratifies revenue increase

The Midlothian City Council on Tuesday adopted the city’s fiscal 2025–26 operating budget and voted to keep the city property tax rate at 65¢ per $100 of assessed value, saying the combination funds planned services and capital projects while producing a higher total tax revenue than last year.

Anne, a city staff member presenting the budget, told the council the public‑hearing process complied with the local government code and included a taxpayer impact statement showing a median taxable homestead value of $334,099. “This public hearing provides an opportunity to communicate with interested persons regarding the proposed budgets before adoption,” Anne said.

The adopted budget appropriates $67,715,553 for the general fund and includes other fund totals the council reviewed, including a utility fund of $42,315,610, a Midlothian Economic Development (Type E) allocation of $2,433,789 and a Midlothian Community Development Corporation (Type B) allocation of $7,670,000. The council approved the budget by a 6–1 vote on the record; the tax rate ordinance passed unanimously on a subsequent record vote.

Why it matters: Council members stressed the tax‑rate decision balances rising property valuations with investments in infrastructure and debt service. The council also held a separate ratification vote required by state law because the adopted budget will raise more property tax revenue than the prior year.

Council discussion and context Ross, a council member, said residents should expect a modest increase in their bills despite the unchanged rate because valuations rose. “We’re adopting the same tax rate, but with those valuation increases, you may see a little bump there,” Ross said. He and other members said they want to examine strategies next year to avoid outpacing inflation in future tax and budget cycles.

The council also discussed how much of the additional revenue will be invested in roadways and other infrastructure. Staff provided a breakdown showing the adopted budget will raise $5,448,449 more in total property taxes than last year’s budget (a 13.48% increase); of that, $2,651,930 is attributable to new property added to the roll.

Key related votes and approvals (votes at a glance) - Ordinance adopting the FY 2025–26 annual operating budget (Item 2025‑289): Motion to adopt by Councilwoman Hammonds; second by Councilman Weaver. Record vote: 6–1 (Wycliffe voted no). Outcome: approved. Notes: General fund $67,715,553; utility fund $42,315,610.

- Ordinance setting the 2025–26 tax rate at 0.65 per $100 (0.333514 M&O; 0.316486 I&S) (Item 2025‑290): Motion (final language) by Mayor Pro Tem; seconded by Councilman Mormon. Record vote: unanimous, 7–0. Outcome: approved.

- Separate ratification that the adopted budget raises more property tax revenue than the prior year (Item 2025‑291): Motion by Mayor Pro Tem; second by Councilwoman Hammonds. Vote: unanimous, 7–0. Outcome: ratified. Details read into the record: the budget raises $5,448,449 (13.48%) more in property tax revenue than FY 2024–25; $2,651,930 of that is from new property.

- Five‑year interlocal agreement with Ellis County Emergency Services District No. 2 for fire and EMS response (Item 2025‑297): Motion to approve as presented by Councilman Mortimer; second by Councilman Weaver. Vote: 7–0. Outcome: approved. Staff said the ESD will pay an estimated $1,430,855 in fiscal year 2025–26 based on an estimated 5,550 runs; the agreement allows a reconciliation if runs exceed the estimate. The ESD will also set aside half of its sales tax receipts toward a future station in the district over the five‑year period (staff estimated roughly $5 million over five years based on current projections). A deduction for $153,000 in ESD debt service was discussed in how costs are calculated.

- Five‑year professional services agreement with Kimberly Horn and Associates to design Mockingbird water lines (Item 2025‑292): Authorize city manager to execute; amount not to exceed $155,000. Motion by Councilman Weaver; second by Councilman Rogers. Vote: 7–0. Outcome: approved.

- Authorization to sell three out‑of‑service Public Works vehicles and equipment to the city of Venus for $10,000 (Item 2025‑293): Motion by Councilman Rogers; second by Mayor Pro Tem Wycliffe. Vote: 7–0. Outcome: approved.

- Amendment to the Midlothian Economic Development promotional reimbursement program (Item 2025‑294): Council approved modifications that increase reimbursement from 50% to 75% (maximum $5,000), require MED staff pre‑approval of ads, tighten branding language, exclude home‑based businesses (with a board exemption process for drive‑throughs), and remove entertainment events from this program. Motion by Councilman Weaver; second by Councilman Rogers. Vote: 7–0. Outcome: approved. Annabelle, MED staff, described the change as intended to increase use of the $50,000 program and said winners report new foot traffic and expanded marketing reach.

- Governance policy: board requirements, rules and term limits (Item 2025‑295): After discussion the council voted to leave the existing policy as written (no change). Motion to leave policy as is by Councilman Weaver; second by Mayor Pro Tem Wycliffe. Vote: 7–0. Outcome: no change.

- Planning & Zoning Commission rules and election of officers (Item 2025‑296): Council reviewed options ranging from leaving the current P&Z election process in place to creating a nomination/confirmation role for council. The council moved to keep the current approach (P&Z elects its own chair and vice chair). Motion to leave as is by Councilman Weaver; second by Mayor Pro Tem Wycliffe. Vote: 7–0. Outcome: no change.

- Executive‑session actions: • Authorize city manager to execute a joint engagement letter with law firm Kaplan Kirsch for representation related to FAA docket No. 16‑25‑08 (Walter Darra, complainant). Motion by Councilman Weaver; second by Mayor Pro Tem Wycliffe. Vote: 5–1. Outcome: approved. (Council read into the record that action followed the executive‑session consultation on pending litigation.) • Authorize city manager to set pay above midpoint for the parks operations manager position. Motion by Councilman Weaver; second by Councilman Rogers. Vote: 6–0. Outcome: approved.

Public comment and other items During the public‑comment period, John Higdon introduced Frontier Waste Solutions and noted the city will consider a solid‑waste contract in the coming year. Three ceremonial proclamations recognizing the 20th anniversary of Sept. 11 and the Sept. 13 grand opening of the Midlothian Public Safety and Municipal Court facility were presented; the proclamations are ceremonial and there was no formal council action attached.

What’s next The tax rate and budget take effect for the fiscal year beginning Oct. 1, 2025. Several approved contracts and programs will proceed to implementation steps described in the agenda packets and supporting documents; staff indicated further steps and clarifying calculations (for example the ESD reconciliation methodology and debt adjustments) will be reflected in contract language and future reports.

Ending Council adjourned after completing the evening’s votes and returning from a closed executive session on real‑estate, litigation and personnel matters.