Midland council adopts 2025–26 budget, freezes tax rate decline and approves firefighter pay adjustments

The City of Midland City Council adopted the fiscal year 2025–26 budget and related tax measures Tuesday, approving the budget and two required tax items by 6–0 votes and agreeing to a staff-recommended pay-scale adjustment for firefighters.

Christie, a city staff member who presented the budget during the required public hearing, said the proposal reduces the city tax rate for the third consecutive year while remaining slightly above the no-new-revenue rate. “This budget provides a lower tax rate for the third year in a row,” Christie said. She gave the proposed rate as 0.347999 per $100 valuation, down from last year’s 0.348662 and slightly higher than the current-year no-new-revenue rate she gave as 0.336458.

Christie said the net effect of the lower tax rate and rising valuations is an average increase of $7.83 in annual property taxes on a median $300,000 home. “The effect of the lowered tax rate, coupled with the increase in valuations, means that the median home for the City Of Midland will pay an additional $7.83 for their property tax rate or for their property taxes this year,” she said.

The proposed general fund is $187,500,000, Christie said, a 6.3% increase over the prior year. She said 56% of the general fund, about $106,000,000, is allocated to public safety (including fire, police, dispatch, municipal court and code enforcement), and roughly 14%, or $26,000,000, is for infrastructure. The budget also includes $98,000,000 in a water budget for line replacement and related projects; about $39,800,000 for road improvements and maintenance; and $22,000,000 for ongoing park projects and maintenance, with more than $20,000,000 of that to be leveraged from public–private partnerships.

Council discussion addressed firefighter compensation and retention. The mayor and council described discussions with fire department leadership and agreed to a targeted adjustment to the pay scale to address concerns that certain officers would be left behind under a new pay structure. Chuck, a fire department staff member, explained the technical change: by removing the first two steps of the captain pay scale, officers who previously would have reached the prior maximum in four years can still reach that amount in the same time under the new scale. Chuck said the cost of the adjustment is about $59,000 and that it can be absorbed within the adopted budget.

Christie and council members also summarized longer-term funding decisions and prior actions: the city paid about $54,000,000 this year toward a fire retirement fund to resolve a multi-decade issue, and council cited a voter-approved $100,000,000 road bond that staff said has been absorbed without a pension-obligation bond. Christie said the council’s approach has kept real dollars in residents’ hands and added $2,200,000 to a city reserve the presentation called the Midland Citizens Fund.

Votes at a glance

- Budget (Ordinance to appropriate funds for fiscal year 10/01/2025–09/30/2026): adopted, motion carries 6–0. Motion text: approve the budget for the fiscal year beginning Oct. 1, 2025, and ending Sept. 30, 2026, as presented (mover/second not specified in transcript). Tally: yes 6, no 0.

- Resolution ratifying property tax revenue increase reflected in the FY2025–26 budget: adopted, motion carries 6–0. Motion text: ratify the property tax revenue increase required by state statute (mover/second not specified in transcript). Tally: yes 6, no 0.

- Ordinance fixing the tax levy (adopt tax rate 0.347999 per $100 valuation): adopted, motion carries 6–0. Motion text: adopt tax rate of 0.347999 (mover/second not specified in transcript). Tally: yes 6, no 0.

The council placed each tax action in the sequence required by state law: a public hearing on the proposed tax rate, a resolution ratifying the tax revenue increase when applicable, and the ordinance fixing the tax levy. Christie said required notices comparing Midland’s proposed rate to peer cities were prepared and that some peer cities are proposing rate increases while others remain flat.

The council moved into executive session at the end of the meeting under the Texas Government Code sections listed on the record to discuss attorney consultation, contemplated litigation, real property deliberations, personnel matters, and economic development negotiations. The regular session adjourned at about 10:29 a.m.