Lufkin council records proposal of a 0.52 tax rate for public hearings on 2025 budget

The Lufkin City Council took a record vote to place a proposed tax rate of 0.520000 per $100 valuation on the agenda for the required public hearings on the fiscal 2026 budget and tax rate.

Belinda Mellontsen, the city’s finance director, explained the legal framework under the Texas tax code: the “no-new-revenue” tax rate for tax year 2025 was calculated at 0.47773 per $100 valuation and the voter-approval rate was 0.554584 per $100 valuation. She told council the current tax rate is 0.508215 per $100 valuation and that each one-cent change in the tax rate corresponds to roughly $265,000 in city revenue. Mellontsen said a no-new-revenue rate would generate the same property-tax revenue as the previous year assuming the same properties are taxed and pointed to public hearings on the budget and tax rate set for Sept. 9 and Sept. 16.

Kevin (city staff) and council members discussed tradeoffs between proposed rates, city priorities and specific budget items that staff had included in the draft budget. Kevin listed capital-maintenance items and other needs in the draft budget, including facility repairs at city hall, a $45,000 server-room air conditioner, parking-lot pavement repairs, additional mowing contracts, rec-center maintenance and staffing additions in building maintenance, IT, code enforcement and seasonal/trail crews. He said the city’s facility study estimated roughly $1 million in nonroutine facility needs over the next two years.

Council members asked about recent sales-tax performance and collection: Kevin reported sales tax was running about 2.2% above the prior year and projected a 0.5% increase next year, which Kevin estimated would be roughly $70,000. Council members also reviewed recent history of the tax rate and the fiscal effects of prior rate changes. After discussion, a council member moved and another seconded a motion to record a proposed rate of 0.520000 per $100 valuation for the formal public-notice process; the motion carried and staff will present detailed budget materials and hold the public hearings on the dates noted. No final tax rate was adopted at the meeting; council will consider adoption following the required public hearings and any further adjustments to the draft budget.