Midlothian council sets 0.65 maximum ad valorem rate, schedules Sept. 9 public hearing

The Midlothian City Council voted 7-0 on Aug. 12 to establish a maximum ad valorem tax rate of $0.65 per $100 of assessed value and scheduled a public hearing on the proposed rate for Sept. 9, 2025.

City finance staff said the vote begins the statutorily required rate-setting process and does not set a final tax rate. “You are just starting the process by establishing the max that it can be set at,” Chris, a city staff member, told the council, noting the council may adopt a lower rate at a later meeting.

The council’s motion, made by Councilwoman Hammonds and seconded by Councilman Mormon, passed on a recorded roll call: Councilman Mormon, Councilwoman Hammonds, Mayor Pro Tem Wickliffe, Mayor Kaufman, Councilman Rogers, Councilman Weaver and Councilman Sheffield all voted yes.

Why it matters: Setting the maximum begins a series of statutory notices and hearings under Texas law; the council must return on Sept. 9 to consider adoption of the actual rate. Staff said the agenda packet discloses how the proposed rate would divide between maintenance and operations (M&O) and interest and sinking (I&S), and includes the no-new-revenue and voter-approval rates.

Public comment: Lisa Healy, a resident of Midlothian, told the council she reviewed the worksheets exchanged with the county tax assessor and said the city had increased projected debt service on later worksheets to reach the 0.65 figure. “Once the city saw that it was lower than the 0.65 that they had estimated, they went back and through an ORR…increased the amount of debt they say they’re going to pay in order to get the 6.5,” Healy said, raising concern about estimated I&S amounts and asking where excess funds would go if actual debt costs are lower than projected.

Staff response and funds use: Council members asked for clarity on the use of any excess I&S collections. Chris said excess I&S funds would remain in the I&S fund balance and could be used to pay future debt. He described the back-and-forth with the tax office as a normal part of ensuring the tax roll, senior freeze calculations and other inputs are correct ahead of final adoption.

What’s next: The council will hold a public hearing on the proposed tax rate on Sept. 9, 2025, and may adopt a lower rate at that meeting. Staff emphasized that the Aug. 12 vote only sets a legal maximum and does not change resident bills until a final rate is adopted.

Ending: The council took the Aug. 12 action by recorded vote and did not change any other items; further public outreach and published notices will accompany the Sept. 9 hearing.