Missouri City proposes $255.6 million FY2026 budget; sets tax-rate hearing for Sept. 15

Missouri City City Manager Angel Jones presented the proposed fiscal year 2026 budget to the City Council on Aug. 18, proposing a total budget of $255,600,000 for all funds and a general fund of $101,300,000. The council also designated a proposed maximum ad valorem tax rate of 0.570825 and set a public hearing on the tax rate for Sept. 15.

The proposed budget, Jones said, includes $42,000,000 in capital-project funding and reflects the council’s stated priorities for public safety and infrastructure. "I am pleased to propose a total budget of $255,600,000 for all funds," Jones said during the presentation.

Interim Chief Financial Officer Bertha Alexander reviewed revenue and expense highlights. She said property tax is the largest single revenue source for the general fund at 61.9% and sales tax accounts for 18.2%. Alexander told council the city received more than $23,000,000 in supplemental budget requests and funded approximately $16,500,000 of those requests in the proposed budget, including:

- $11,200,000 for streets, traffic, sidewalks and capital investment; - $2,100,000 for public safety; - $890,000 for enhanced services due to growth; - $745,000 for economic development; - $1,500,000 for employee recruitment and retention.

"The total fiscal year 20 26 proposed budget is approximately $255,600,000 which is a 1.6% increase over the prior year revised budget which includes all funds," Alexander said.

Staff said the first year of the five-year capital improvement plan totals $43,000,000 in FY2026 capital expenditures. Utility funds were shown with FY2026 budgeted revenue of $69,900,000 (including approximately $27,900,000 in bond proceeds and $23,000,000 in user fees) and budgeted utility expenditures of $71,100,000.

Personnel costs for the general fund are projected to increase by roughly 6% in part because of the addition of seven new firefighter positions and anticipated increases in employee pay and health insurance. The proposed budget preserves the current city tax rate while reallocating the maintenance and operations component to balance the debt rate required to cover debt service.

Alexander also reviewed the certified tax roll process, noting the statutory requirement to present the certified roll under Section 26.4 of the Texas Property Code and the city’s timelines: the detailed budget will be filed and posted to the website on Aug. 25, a community budget workshop is scheduled for Aug. 23, and the public hearing and adoption of the FY2026 budget and the tax rate are scheduled for Sept. 15.

Council designated the proposed tax rate and set the Sept. 15 public hearing by unanimous vote. Staff said the proposed rate (0.570825) is below both the city’s calculated no-new-revenue rate and the voter-approval tax rate.

The city will post the detailed FY2026 budget online when the city manager files it on Aug. 25 and staff encouraged public participation at the Aug. 23 community workshop and the Sept. 15 hearing.