Granbury holds public hearing on proposed 2025-26 budget; council postpones final vote to Sept. 2

Granbury City Council opened a public hearing Tuesday on the city’s proposed fiscal year 2025-26 annual operating budget and voted to postpone final adoption until the council’s Sept. 2 meeting.

The hearing, held Aug. 26 at Granbury City Hall, featured a video presentation of the proposed budget followed by staff remarks and brief council comment. The council voted, 5-0, to postpone final action on the budget to Sept. 2, 2025; Councilmember O'Hare made the motion and Councilmember Allam seconded.

The video and staff presentation outlined the city’s revenue mix and key line items. City communications staffer Connor summarized major revenue sources, saying sales tax — not property tax — is the city’s largest revenue source. The presentation said Granbury collected more than $12,900,000 in sales tax last year and that the municipal hotel occupancy levy of 7% (with 6% going to the state) generated more than $1,000,000 last year. The presentation also estimated the Granbury Municipal Airport contributes about $17,000,000 annually in economic impact.

Staff described the proposed tax rate as 42 cents per $100 of valuation, up from the current 38.5 cents. The presentation gave an example: a home valued at $300,000 would face a city property tax bill of $1,260 under the proposed rate, $105 more than under the prior rate on the same valuation. Staff also said preliminary estimates showed a 7% rise in appraised values, and that final appraisals come from the Hood Central Appraisal District.

City staff listed several budget items and changes: seven new staff positions (a project accountant, a master building technician, an airport line service supervisor, a travel/events coordinator and three operators for the new East Wastewater Treatment Plant), and $210,000 set aside for future major utility infrastructure. Staff noted the city operates its own electric, water and sewer utilities, and that utility rates and franchise fees contribute to revenue.

City staff explained one reason for the proposed tax-rate increase: uncertainty about the county’s continued participation in the Granbury regional radio network. "The law clearly says that we can't have this public hearing on the same night that we adopt this budget," City staff member Kaufman said while introducing the hearing; Kaufman told the council the council had asked staff to prepare a rate that would cover the cost of the city operating alone should the county not join the interlocal radio agreement.

No members of the public spoke during the hearing; the council opened and then closed the public hearing before voting to postpone. Final adoption of the budget and formal vote on the tax rate are scheduled for the Sept. 2 council meeting.

The budget document and supplemental materials are posted online at granbury.org (the staff presentation referenced the city’s public budget page).