Granbury council adopts 2025–26 budget and raises property tax rate to $0.42 per $100 valuation

The Granbury City Council on Sept. 2 adopted the city’s fiscal year 2025–26 operating budget and ratified a property tax rate of $0.42 per $100 valuation, a 6.59% rate increase over the prior rate. The measures passed on record votes of 5–1, with Councilmember Rodriguez casting the lone dissent.

The council approved Ordinance No. 25-554 (adopting the annual operating budget) and then ratified the property tax increase reflected in that budget. City staff said the higher rate was needed in part to cover the city’s share of the Granbury Regional Radio Network after the county had not delivered a signed interlocal agreement that staff expected.

City Manager Chris Kaufman and finance staff told council they had built an operating budget with a tax rate near 0.3998 but that final appraisal district valuations and the unresolved county contribution increased the revenue need. Finance staff member Ava said on the record that a 0.01 change in the tax rate would amount to about $40 annually on a $400,000 home.

Why it matters: Council members said they preferred not to rely on an unsigned county commitment for a public-safety project that will begin in the new fiscal year. City staff said they need a balanced budget by law and that revenues must match expenditures, so the council had to decide whether to cut programs or adopt a higher rate. Mayor Jim Jarrett Mayer and other council members said they were unwilling to delay funding for the radio system without a firm county contribution; opponents argued the city could cover shortfalls from reserves or cut other items.

Council discussion focused on three financial facts presented by staff: the city’s “no-new-revenue” rate (the rate that would raise the same revenue as last year) was approximately 0.394024; the voter-approval tax rate was listed at about 0.520903; and the de minimis rate in the staff packet was about 0.437253. Staff emphasized that state legislative proposals and changing valuations have tightened cities’ options on future tax increases.

Record votes: the budget ordinance and the ratification of the tax increase were each recorded 5–1 (Mr. Corrigan, Mr. Wadley, Mayor Mayer, Mr. Overdier and Mr. Hollum voted aye; Mr. Rodriguez voted nay). The separate ordinance levying the 0.42 tax rate also passed 5–1 on a recorded vote.

The council’s action takes effect for the fiscal year beginning Oct. 1, 2025; the property tax rate applies to the year’s valuations. City staff said they will continue to press the county for a signed interlocal agreement and will report back to the council if the county signs later; staff said any later change to the tax rate would require subsequent council action consistent with state law.

The council’s packets and staff presentations include the adopted budget document and the truth-in-taxation worksheet showing the alternative rates and the revenue calculations. No changes to utility rates were included in the items the council adopted at this meeting.