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El Campo sets tax-rate ceiling at 0.49144; staff outlines budget changes to balance 2026 plan
Summary
Council members accepted the 2025 certified property tax roll and set a ceiling for the 2025 proposed tax rate at the no-new-revenue rate (0.49144). Staff outlined budget balancing moves including a 3% sales-tax rebound assumption, increases in water/sewer fees, a $127,000 permitting revenue bump and utility fund transfers.
The El Campo City Council accepted the 2025 certified property tax roll and on a separate record vote set the tax-rate ceiling at the state'defined no-new-revenue rate of 0.49144.
Staff (Speaker 5) presented the certified roll from the Wharton County chief appraiser and pointed council members to the taxable values in the meeting packet. Council asked about approximately $66 million in values that remain "under review" and how those figures are treated; staff said assessors typically use a percentage of that value for calculations and that staff had worked with the appraisal district to reconcile numbers before presentation.
On the budget, Speaker 5 said staff adjusted the proposed fiscal 2026 budget to balance at the no-new-revenue rate. Key changes cited were a conservative 3% anticipated rebound in sales tax receipts, increases to water and sewer fees consistent with recently proposed rate changes, a recalculated 5% utility franchise fee, a $127,000 permitting revenue increase to account for an upcoming school permit, and transfers from the utility fund including roughly $145,000 planned for main replacements. Staff emphasized the utility fund adjustments are intended to keep the utility fund whole and not to subsidize the general fund.
Several councilmembers asked for time to review the full 146-page budget (Speaker 4 said he had not reviewed the packet and requested a meeting). Speaker 6 moved to approve the certified property tax roll and later Speaker 6 moved to set the tax-rate ceiling at 0.49144; both motions passed after a second.
Staff noted setting the ceiling does not adopt the final rate. If the council wants to set a rate above the no-new-revenue level, staff said it would require a public hearing. Staff also cautioned that the 3% sales-tax assumption is conservative and might not materialize; they committed to monitoring revenues in the first quarter and returning with recalculations as needed.
Next steps: staff will schedule a follow-up budget review with council members who requested more time and will report early revenue results to allow adjustments before final adoption.
