Royce City council debates up to double‑digit property tax increase to shore up wages, staffing

Royce City Mayor (Mayor) and city budget staff told the council in a June special work session that the tentative budget submitted in May faces a roughly $450,000 gap and that council members must set a maximum property tax rate for public notice at their June 17 meeting.

The meeting centered on three linked problems: an immediate shortfall in the tentative budget, long‑term wage compression that leaves Royce City about 14% behind neighboring jurisdictions, and heavy staff turnover in critical departments. City Manager Matt (Matt) framed the discussion as a guided conversation and noted the city had identified $300,000 in previously unaccounted wage savings that reduce a projected 15% tax increase to roughly 9% if used to close the gap. “This is meant to be a guided discussion and not a lecture,” Matt said.

Why this matters

Council members stressed that decisions now will affect public safety and day‑to‑day services. Chief Williams (Fire Chief) told the council his department has experienced “70% turnover” over several years, and that many firefighters are within their first three years on the job — a level that, he said, risks response capability and increases overtime costs. “My goal is to keep us competitive,” Chief Williams said, describing an offer to hold two positions vacant to reallocate salary funding within his department.

What council discussed and options on…