Waco staff outline proposed FY26 budget, warn homeowners will see higher bills despite flat tax rate

City Manager Ford and Chief Financial Officer Luke Costlik presented the city manager’s recommended fiscal year 2025–26 operating budget and capital improvement plan to the Waco City Council during a work session Tuesday, Aug. 19.

The presentation summarized a citywide budget of roughly $652 million and a general fund of about $210.3 million, with staff reporting “no change to your revenues and your expenses as a whole,” Costlik said. The proposal keeps the city’s tax rate flat at 75.5 cents per $100 of assessed value, but officials cautioned that rising property appraisals will raise the average homeowner’s bill.

Why it matters: The presentation showed how the city would allocate taxpayer dollars and highlighted that public safety and debt service consume most of the average homeowner’s payment. Council members pressed staff for clarity about trade-offs and service-level changes as the city balances a largely flat budget with rising costs.

Cost and tax impacts City staff…