Cedar Hill council adopts FY2026 budget, sets tax rate at 0.636449 per $100 and approves Atmos Energy settlement

The Cedar Hill City Council on Sept. 9 adopted the city’s fiscal year 2026 budget and capital improvement plan, set an ad valorem tax rate of 0.636449 per $100 of assessed value, ratified an increase in property-tax revenue for the fiscal year and approved a negotiated settlement with Atmos Energy Corporation during a meeting at the Cedar Hill Government Center.

The budget ordinance (Ordinance No. 2025-859) approves the city’s proposed operating budget for the fiscal year beginning Oct. 1, 2025, and ending Sept. 30, 2026. The council also adopted the capital improvement plan ordinance (Ordinance No. 2025-860) and the tax-levy ordinance (Ordinance No. 2025-861) setting the tax rate at 0.636449 per $100 assessed valuation. The council later adopted Ordinance No. 2025-862, ratifying the increase in property-tax revenue reflected in the FY2026 budget.

Why it matters: Council members said the move balances continuing city services with revenue changes tied to property values. During the public hearing, residents raised concerns about code enforcement practices and the distribution of A/B tax proceeds; council members acknowledged those comments and said staff would address questions as part of ongoing work on the budget and other agenda items.

The council debated the technical language used in the tax documents: Councilmember Sims told the chamber that the proposed tax rate “is actually a decrease in the tax rate from last year,” while at the same time Councilmember Hayden noted that the ordinance’s stated percentage reflects a change the state’s required disclosure treats as an effective increase. The council ultimately adopted the tax levy and separately ratified the increase in property-tax revenue included in the budget.

On the Atmos Energy item, Councilmember Sims made a formal statement of concern before moving the negotiated resolution (Resolution No. R25-759) approving a settlement with Atmos Energy over its 2025 rate review mechanism filing. “Over two years, that’s over 16%,” Sims said of recent cumulative increases and added, “I just don’t think those kinds of increases are sustainable going forward.” The council approved the negotiated settlement by recorded vote.

The consent agenda passed as a group and included two zoning ordinances (Ordinance Nos. 2025-864 and 2025-865) to establish planned-development districts, a project-specific agreement with Dallas County for street striping (Resolution No. R25-758), authorization to execute an agreement for food-establishment inspection services, and a capital authorization of $1,324,150 for asphalt street improvements with Reynolds Asphalt and Construction Company. Councilmember Malone moved approval of the consent items; the motion carried.

Public comment: Two residents addressed the council. A resident identified as Mark Blamowitz raised concerns about code enforcement and said he believed constitutional notice requirements were not being followed. Another resident, Philip Balamowitz, raised concerns about taxes, development and whether the city was effectively functioning as a water district in some decisions; he urged closer scrutiny of how tax and zoning decisions affect long-term residents.

Closed session: The council held a closed session citing Texas Government Code Sections 551.072 (real property) and 551.087 (economic development). The mayor reported no action was taken following the closed session.

Votes at a glance: The council recorded approval of the budget and related ordinances and resolutions and approved the Atmos Energy settlement. Recorded votes were taken; the meeting minutes indicate the measures carried. (See actions array for motion text, movers/second, and tallies.)

The council adjourned at approximately 9:25 p.m.