Conroe Council adopts FY 2026 operating budget, sets tax rate at 0.4272 and OKs utility and solid-waste rate changes

Conroe City Council approved the city's FY 2026 operating budget and set the 2025 ad valorem tax rate at 0.4272 per $100 of taxable value during a Sept. 11 meeting at Conroe City Hall.

The council adopted an operating budget that staff said includes a 6 percent cost-of-living increase for all employees and a required 3 percent contingency. Finance staff summarized total revenues for all funds at $361,900,000 and total expenditures at $381,900,000; the 3 percent contingency was described in the meeting as $11,100,000.

The budget vote was 4 in favor and 1 opposed. Council members then held a separate, statutorily required vote to ratify that the adopted budget would collect more property tax revenue than the prior-year budget; that motion carried. Council also adopted the FY 2026 capital improvement program (first year of the five-year CIP), and later approved the 2025 ad valorem tax rate and its two components: a maintenance and operations (M&O) rate of 0.3022 and an interest and sinking (I&S) debt-service rate of 0.125.

Why it matters: the budget and tax-rate votes set the city's spending plan and the portion of property tax bills that go to Conroe for the coming fiscal year, and the CIP adoption establishes capital spending priorities that affect infrastructure, public safety and utilities.

City finance staff said the adopted operating budget includes a citywide 6 percent cost-of-living adjustment for…