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Lufkin City Council approves 2025–26 budget and adopts higher tax rate
Summary
At a regular meeting, the Lufkin City Council approved the fiscal 2025–26 budget, ratified an increase in property tax revenue and adopted a tax rate of 0.528215 — a 2¢ increase per $100 valuation — after public hearings and recorded votes.
The Lufkin City Council approved the proposed fiscal 2025–26 budget, ratified a rise in property tax revenue and adopted a tax rate of 0.528215 during its regular meeting.
Council members opened a public hearing on the budget and tax measures before taking action. Staff presented the proposed budget package, which carries a proposed tax rate of 0.528215 — described in the packet materials as a 2¢ increase per $100 of assessed valuation — and estimates an average homestead owner would pay about $77 more annually than under the current rate.
The staff presentation noted an operational-expenditure reduction compared with last year’s budget. "It does reflect overall operational expenditures of a reduction in overall operational expenditures of 1 point half million or 1.6 compared to last year's budget," Speaker 3 said during the presentation. Staff also reported that the budget would raise $715,388 more in general fund revenue than the prior year; $176,512 of that increase comes from newly added property on the tax roll.
Pursuant to Texas law, staff explained that chapter 26 of the Texas tax code requires a separate council vote to ratify any budget that raises more property tax revenue than the previous year. The council moved and approved an ordinance ratifying the increased property tax revenue.
Separately, the council considered and adopted the ordinance levying taxes for municipal government and debt service for fiscal 2025–26. Staff presented the "no new revenue" rate of 0.47773 and noted that the proposed rate of 0.528215 would raise more revenue than the current 0.508215 rate. After a recorded vote, the presiding speaker announced the motion to adopt the tax rate carried.
The public hearing records included no public speakers on these items. The meeting minutes and packet materials supplied the numerical details cited by staff; the roll-call recording in the transcript shows 'yes' and 'no' responses and the mayor (presiding speaker) announced motions carried.
Next steps: the budget ordinance and tax levy ordinance were approved on second reading at this meeting; any additional procedural or publication steps required by state law were not detailed on the record.
