Waco adopts $649.8 million operating budget and ratifies 0.755 tax rate for FY 2025-26

The Waco City Council on Sept. 2 adopted the fiscal year 2025-26 operating budget and capital improvements program and ratified a property tax rate of 0.755 per $100 valuation.

The adopted FY 2025-26 operating revenues are $652,449,670 and operating expenses are $649,799,728. The capital improvements program budget is $134,151,820. The ratified tax rate of 0.755 per $100 valuation consists of 0.5845 per $100 for maintenance and operations and 0.1705 per $100 for debt service; council noted the rate is higher than the “no new revenue” rate but lower than the voter-approval tax rate. Under Texas law, because the budget raises more property-tax revenue than last year, council conducted a separate record vote to ratify the property tax increase.

Council voted separately on three line items after Council Member Bordereau filed an affidavit of substantial interest tied to Baylor University. The three objects discussed and approved separately were: object 623100 (Junior Police Academy at Baylor), object 655850 (Baylor club membership), and object 489107 (Waco Transit Baylor route contract). Council approved those Baylor-related items first, then approved the remainder of the operating budget and CIP.

Public comment on the tax rate included RJ Pace of 3200 Sherco Road, who thanked council for maintaining the overall rate but urged the city to aim lower in future budgets, suggested raising the homestead exemption from 15% to the 20% maximum, and proposed not exceeding the no-new-revenue tax rate going forward.

Motion and votes: Council Member Ewing moved to approve the specified Baylor items; the motion was seconded by Mayor Pro Tem Barefield and passed on a roll call (Lozano: yes; Porter Root: yes; Barefield: yes; Ewing: yes; Chase: yes; Holmes: aye). For the remainder of the budget, Council Member Porter (moved) and Council Member Ewing (second) (motions recorded in the minutes) led the motion to approve the rest of the FY 2025-26 operating budget and CIP; the motion passed on roll call (Lozano: yes; Bordereau: yes; Barefield: yes; Ewing: yes; Chase: yes; Holmes: aye). To ratify the property tax increase (adoption of the 0.755 rate), Council Member Bordereau moved and Council Member Lozano seconded; the motion passed on roll call (Lozano: yes; Bordereau: yes; Barefield: yes; Ewing: yes; Chase: yes; Holmes: aye). The council scheduled a second reading and vote on the tax rate at a special-called meeting on Tuesday, Sept. 9, 2025, at 6 p.m. at the Bosque Theater, Waco Convention Center, 100 Washington Avenue.

The budget resolution also authorizes the city manager to expend funds included in the operating budget without further council action for items listed in the resolution (employee salaries and benefits, regulatory permit fees remitted to the state, utility services for city facilities, expenditures for existing contracts, and ongoing supplies). The council record shows the public hearing on the budget was opened and closed with no additional speakers besides the one public commenter who spoke during the tax-rate public hearing.

The council identified the budget’s tax-rate components and affirmed required public-notice steps: the FY 2026 budget development followed City of Waco Charter and Texas statutory requirements and included availability of the amended documents for public review and hearings as required by law.