Germantown proposes $211.3 million FY26 budget, backs 29¢ property tax increase; public hearings set for June 9

Germantown city officials on Monday presented a proposed $211.3 million Fiscal Year 2026 budget and recommended a 29‑cent increase to the property tax rate, moving the proposed rate to $1.79 per $100 of assessed value. The Board of Mayor and Aldermen voted on first readings for the budget and related tax ordinance and set public hearings for Monday, June 9.

Jason Heisman, city administrator, told the board the total proposed FY26 budget is $211,300,000 with $78,700,000 in the general fund and described the proposal as “structurally balanced.” Heisman said the increase is intended to fund long‑term obligations, including higher pension contributions and public safety staffing needs.

Why it matters: the proposed increase follows Shelby County’s 2025 reappraisal, which required the city to reset to a certified tax rate (the “rollback” or tax‑neutral rate) before proposing an upward adjustment. Officials said the additional revenue would help cover pension funding increases, public safety positions and capital projects including initial funding toward planned Houston High School renovations.

Key details presented to the board: - Property tax: the 2025 reappraisal reset the certified rate to approximately $1.4987; the administration proposed adding $0.2913 (29.13¢) above that certified rate to reach $1.79 per $100 assessed value and requested first reading approval of Ordinance 2025‑4 to set that proposed tax…