Wylie adopts FY 2025–26 budget and raises property tax rate to 0.543438 per $100

Wylie city council on Aug. 26 adopted the fiscal year 2025–26 budget and set the property tax rate at 0.543438 per $100 assessed value, a vote that followed public comment and extensive council discussion about public safety, staffing and city services.

Budget and tax actions: the council adopted Ordinance No. 2025‑32 (the FY 2025–26 budget) by a 5–0 vote. Separately, under state law the council voted to ratify the property tax revenue increase reflected in the adopted budget and held a public hearing on the proposed tax rate. The council then adopted Ordinance No. 2025‑33 to fix the tax rate at 0.543438 per $100 (a recorded vote required because the proposed rate exceeds the no‑new‑revenue rate); the ordinance passed 5–0.

What the rate means: Finance staff said the proposed rate is the voter‑approval rate and represents an increase of 0.009137 from the current tax rate — a little under one cent per $100 valuation. The finance director and city manager told council that the increase funds an average 3% merit pool for staff, a 4% step plan for public safety pay, higher insurance costs, and operational needs tied to bringing emergency medical services (EMS) in‑house and replacing vehicles and equipment.

Public comment: several residents spoke at the required public hearings. - Bethany Sullivan urged protection of library collection diversity and praised the local library’s founding. (Public comment, non‑budget item.) - Laura Gates said she opposed a tax rate increase and asked the council to cut spending, citing concern over the Wylie Economic Development Corporation’s (WEDC) balance and asking the city to avoid passing tax costs to homeowners. - Alexandra Rolfson asked how the rate increase and a stormwater utility fee will be used for drainage work in her neighborhood and sought clarification about responsibility for easements and drainage systems. - Whitney McDougall questioned several budget items and carryover requests, including an armored vehicle and $500,000 in park funds for pickleball‑court shades; she also asked whether some budgeted costs could be spread over multiple years. Council and staff responded explaining funding sources and restrictions.

City responses and context: Mayor Matthew Porter, the city manager and Finance Director Miss Brown addressed questions on funding sources and constraints. Staff noted that: EDC and parks 4B funds are generated by sales tax and are legally restricted to their purposes and cannot be shifted to the general fund; seized funds were used for the armored vehicle carryover request; bringing EMS in‑house increased the city’s near‑term costs; and public safety (police, fire, EMS) comprises a large share of the city’s budget.

Staff noted historical context: the city’s tax rate was approximately 0.8989 about 15 years earlier, and the council trimmed the rate for several years before the current modest increase. Finance staff explained the no‑new‑revenue tax rate calculation and said state law (Local Government Code §102.007 and House Bill 3195 as referenced at the meeting) requires separate votes on the budget and on the property tax revenue increase when the proposed rate produces increased revenue.

Key numbers recorded in the meeting: - Adopted tax rate: 0.543438 per $100 assessed valuation (M&O 0.422048; debt service 0.12139). - Increase from current rate: 0.009137 per $100 assessed valuation (noted by staff). - Staff said the average home valuation used in examples was $474,000; staff said that equated to about $104 per year above the no‑new‑revenue rate for that example homeowner (per city manager’s remarks during the hearing).

Votes at a glance: - Ordinance No. 2025‑32 (Adopt FY 2025–26 budget): approved 5–0. - Property tax revenue increase (separate ratifying vote required by state law): approved 5–0. - Public hearing on proposed tax rate of 0.543438: held; public comments received. - Ordinance No. 2025‑33 (fixing tax rate at 0.543438): adopted 5–0 (record vote).

What happens next: the tax and budget ordinances take effect as stated in the ordinances. Staff and council emphasized they will continue to monitor staffing, recruitment and costs; several council members urged continuing outreach and transparency about how tax dollars are allocated and how sales‑tax restricted funds (EDC/4B) may be used.