Richardson holds public hearing on proposed 2025-26 tax rate, staff previews budget and fee changes

The Richardson City Council held a public hearing Sept. 4 on a proposed property tax rate of 0.54218 per $100 valuation and heard a department-level review of the proposed FY 2026 budget and associated fee changes.

City staff presented the budget framework tied to the proposed tax rate and described planned operating and capital expenditures, staffing adjustments, and utility fee proposals. The presentation detailed revenue assumptions, projected changes to major funds and the planned next steps in the budget adoption schedule.

Why it matters: The property tax rate and related fee adjustments fund public safety, infrastructure, utilities and community services. The council’s decisions will shape the city’s FY 2026 spending, staffing and capital plans.

Finance Director Todd Gastroff and Assistant/Finance staff walked the council through the assumptions underlying the proposed tax rate and budget. The certified tax roll showed a small certified value decline (about 1.43% overall; net change after TIF and disputed values -0.61%), including roughly $176 million of new construction on the roll. The presentation showed the proposed tax rate of 0.54218 would place Richardson slightly below the Metroplex average.

Key budget items outlined by staff included: - Personnel: A merit/compensation package that includes a 4.5% total adjustment for sworn police and fire (2.5% effective Oct. 1 and 2% on April 1), a 2.5% increase for civilian employees in public safety, an increase in minimum wages from $20 to $21 per hour for full-time permanent and permanent part-time employees, and targeted market adjustments for a small number of positions. - Public safety: Funding for a recruit class of 12 apprentice firefighters to fill vacancies, continued investment in mental and physical wellness programs, and capital replacement for police patrol cars and equipment (including optic sights and vests). - Utilities: Recommendation to increase water and sewer rates by 6% to cover wholesale water and sewer treatment cost increases, including an $1.8 million increase in wholesale water costs and a $5.3 million increase in sewer treatment costs. The water and sewer fund’s debt service also rises; staff said about 63% of water/sewer expenditures are for wholesale purchase and treatment. - Solid waste: A proposed residential collection rate increase of $0.50 per month (approximately $143,000 citywide) and commercial collection increases estimated to yield about $560,000. - Drainage fee: Staff proposed (and scheduled for a later public hearing) a $1 monthly drainage fee increase to fund additional drainage projects; staff said all drainage fee revenue (estimated $758,000 from the increase) would be dedicated to drainage projects. - Capital: The capital plan totals just over $64 million; staff highlighted continued investment in streets, bridge rail maintenance, concrete and asphalt repairs and other infrastructure.

City Manager Magner and Finance staff emphasized that the general fund transfer-outs for streets, parks and facility maintenance remain stable and that the FY 2026 budget is designed to preserve service levels while addressing inflationary pressures and utility cost increases.

No public commenters addressed the tax-rate hearing during the initial hearing period; after the staff presentation Mayor Pro Tem Hutchenrider moved to close the public hearing and Council Member Dorian seconded; the motion passed unanimously (7-0).

Ending: The council will hold further budget hearings and is scheduled to consider final adoption and ratification actions in coming meetings; staff signaled a separate public hearing on the drainage fee is scheduled for Oct. 13 ahead of first drainage bills in November, and staff aims to return with final adoption items according to the public-notice schedule.