Anna adopts $29.7 million FY2026 budget and raises property tax rate to fund police station

The Anna City Council on Sept. 9 adopted a $29.7 million fiscal year 2026 general fund budget and voted to increase the city's property tax rate to $0.525073, a 5.88% effective increase that councilmembers said is primarily intended to fund a new police station and add public-safety personnel.

Budget manager Terri Dobie told the council the adopted budget is balanced and that the rate "is generating $3,100,000 in additional revenue." She also said the state's Local Government Code requires a separate recorded vote when a budget will raise more revenue from property taxes than the previous year: "Section 102 of the local government code states that the adoption of a budget that will require raising more revenue from property taxes than in the previous year requires a separate vote of the governing body to ratify the property tax increase that is reflected in the budget." The council adopted the budget and the separate tax items by recorded votes.

Why it matters: Council members repeatedly tied the tax increase to public-safety needs. Council discussion and staff presentations said the budget includes capital and staffing for a new police station and adds five police officers, one detective, one lieutenant and two custodial positions for the new library. Council members said failure to approve the tax actions would likely require shrinking those additions.

Key facts and votes

- General fund: $29,700,000 in revenues and $29,700,000 in expenses, according to the budget manager. - Utility fund: balanced at $30,900,000 in revenues and expenses. - Adopted tax rate: $0.525073 (approved 6-1). - Dobie said the rate produces about $3.1 million in additional revenue and that the adopted rate exceeds the state's "no new revenue" rate of 0.495928; the voter-approval rate cited by staff was 0.532173. - Council adopted the FY2026 budget by ordinance (record vote; ordinance passed unanimously). The separate votes to ratify the tax revenue reflected in the budget and to adopt the tax rate passed 6-1.

Council members pressed staff for specifics on taxpayer impact. Dobie said the city estimates the average homeowner's bill will increase by about $98 annually (about $8 per month); council members also framed that as roughly 28 cents per day for many households. Councilmember Manny Singh highlighted the trade-off: "So, essentially, what you're saying is the difference of the delta between us approving this and us not approving this is essentially giving police services for the city. That's essentially the delta that we're talking about here." Dobie said if the council rejected the rate, staff would have to revisit the budget before Sept. 30 and that the most likely cuts would be to the new public-safety positions.

Additional budget priorities cited in the staff presentation include the police station project (multi-year), park projects (Bryant Park, Findlay Park) and expansion of the Hurricane Creek Wastewater Treatment Plant.

What to expect next: Staff indicated tax bills must be prepared for mailing by Oct. 1 and that, if the council had not approved the rate, the city would return to revise the budget and possibly call a special meeting. The council's adoption of the budget and tax rate completes the statutory steps staff outlined at the meeting.

(Record votes: FY2026 budget ordinance — passed unanimously; resolution ratifying property tax revenue reflected in the FY2026 budget — passed 6-1; ordinance adopting the FY2026 tax rate $0.525073 — passed 6-1.)