Temple staff propose FY2026 budget that would raise maintenance tax rate to 69.99¢; council asked for follow-up

Temple City Council heard a presentation of a proposed fiscal‑year 2026 budget at a workshop that staff said would prioritize public‑safety pay adjustments, additional operational positions and a pavement‑management funding approach while keeping the proposed tax‑rate ceiling under 70 cents per $100 of assessed value.

City Manager (staff) and Tracy (finance staff) told the council that the city has a certified taxable value increase and that staff have prepared a proposal that funds police and fire market adjustments, increases solid‑waste and fleet capacity and preserves core services while holding the maintenance and operations (M&O) tax portion to a proposed 37.54¢ (part of a total proposed rate expressed to council as $0.6999). Tracy explained the truth‑in‑taxation metrics used to calculate the no‑new‑revenue and voter‑approval rates and said the unusual gap between those rates this year was driven by a recent change to sales‑tax policy tied to a one‑time calculation effect.

Nut graf: The proposal presented to council would, staff said, fund compensation increases for police and fire ($2.7 million for market adjustments), add dozens of positions phased across departments and temporarily shift $1 million in pavement preservation from operating to capital so staff can design a street‑maintenance fee for possible implementation in the next fiscal year.

Staff priorities and positions Staff presented a list of proposed additions and compensation steps that total 36 general‑fund positions in the plan (reduced from an earlier, larger personnel proposal). The package includes: - Market‑based pay adjustments for police and fire (about $2.7 million). Tracy described that as a targeted compensation package to remain competitive with peer cities. - Fire staffing additions (10 positions total) to rebalance shift staffing and add fire‑marshal personnel. - Four solid‑waste positions tied to additional routes (residential garbage, residential recycling and a side‑load commercial route) and a commercial operations manager. - Eleven fleet positions to add a second fleet shift and improve maintenance resilience. - An assistant city manager position and associated support.

Staff emphasized several constraints: fleet and equipment shortages, the city’s geographic footprint and service expectations compel some additions in operations if reliability is to be improved.

Street maintenance and future fees Council and staff discussed a proposal to create a street‑maintenance special revenue fund in FY2027 funded by a user fee. City Manager said staff estimates a $10‑per‑month residential equivalent would cover current street maintenance costs if implemented broadly and with standard commercial equivalencies; staff said a fee would need detailed trip‑generation data and a public outreach process before implementation. For FY2026, staff proposed temporarily funding a $1 million pavement‑preservation program from capital rather than the general fund to avoid an immediate fee while allowing time to design a street fee.

Budget mechanics and legal context Tracy summarized the certified tax roll: the city’s taxable value rose year over year (figures provided in the staff packet), producing a no‑new‑revenue rate and a separate voter‑approval rate under Texas truth‑in‑taxation rules. She warned the council that adopting a rate above the computed voter‑approval rate requires an automatic voter election; staff characterized the proposed 69.99¢ ceiling tonight as the highest rate the council would consider, not a final adoption.

Council feedback and next steps Council members asked for the detailed personnel sheets and benchmarking comparisons (staff provided a multi‑city benchmarking handout showing revenue sources, taxable value per capita and square miles under service). Several council members asked staff to return with per‑capita and total tax‑burden comparisons, and to provide a communications plan for resident outreach. The city manager requested confirmation that the council is comfortable with the proposed scenario so staff may finalize public notices and the budget timetable.

Ending Staff will bring final proposed tax‑rate language, required legal notices and the first reading of the budget according to the published Council calendar; additional public education and a proposed schedule for the street‑fee effort will follow if council approves moving that work forward.