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Germantown adopts FY 2026 budget, approves $1.79 property tax rate and up-to-$500,000 pension contribution
Summary
At its June 23 meeting the Germantown Board of Mayor and Aldermen adopted the FY 2026 operating and capital budgets, set a certified property tax rate of $1.79 per $100 assessed value and approved a year-end pension transfer of up to $500,000 contingent on general fund revenues.
Germantown’s Board of Mayor and Aldermen approved the city’s FY 2026 operating and capital budgets and set a certified property tax rate of $1.79 per $100 of assessed value during their regular meeting on June 23.
The budget vote followed the third and final reading of Ordinance 2025-3. City Finance Director Royalls summarized the process and highlighted the central budget decision: "Our most difficult decision this year was increasing the tax rate," he said, noting the action responded to a reappraisal year and rising costs for debt service, pensions and infrastructure.
The adopted FY 2026 spending plan incorporates a rollback required by state law after reappraisal and an additional deliberate increase of 29.13¢ to reach the $1.79 rate. The board also approved a year-end budget item allowing the city to transfer up to $500,000 to the city pension fund; the transfer is contingent on excess general-fund revenues at fiscal year end.
Why this matters: the property tax decision and the added pension contribution are the core revenue adjustments that fund public safety, infrastructure and the city’s multi-year capital plan. Director Royalls said the budget was developed through four public readings, work sessions and public comment and was intended to preserve core services while responding to inflationary pressures and rising liabilities.
Discussion and dissent: Several aldermen thanked staff for a lengthy budget process. Vice Mayor Mary Anne Gibson reiterated support for schools and public safety and the board’s intent to continue partnering with the Germantown Municipal School District (GMSD). Alderman Salvaggio delivered an extended floor statement urging greater recurring investment in schools and proposing a policy change for more frequent performance- and budget-update work sessions. "I want this to be a continued conversation," he said, describing a proposal for quarterly performance budget updates.
Board action: Alderman Yulecki moved to approve Ordinance 2025-3 on third and final reading; Vice Mayor Gibson seconded. The roll call produced unanimous yes votes from the aldermen present (Alderman Hicks; Alderman Nielicki; Alderman Salvaggio; Alderman Sanders; Alderman Yulecki) and Vice Mayor Mary Anne Gibson. The ordinance was approved and the budget adopted.
Key figures and context - Certified property tax rate adopted: $1.79 per $100 assessed value (includes a rollback and an added 29.13¢). - Pension transfer: up to $500,000 (contingent on year-end general fund excess revenues; will not exceed $500,000). - Board emphasized continued investment priorities: public safety, schools, parks and infrastructure.
Next steps and follow-up: The mayor and aldermen announced a joint work session with the Germantown Board of Education scheduled for July 16 to coordinate school capital planning, including phased work at Houston High School. City staff will monitor year-end revenues to determine the pension transfer amount.
Speakers quoted and referenced in this article are those recorded in the meeting transcript and listed in the article’s speaker roster below.
