City of Lufkin presents FY2025–26 budget, council approves first reading and a 0.528215 tax rate

City staff presented the proposed FY2025–26 budget to the City of Lufkin City Council and, after a public hearing and deliberation, the council approved the budget as presented and adopted a first-reading ordinance setting a tax rate of 0.528215 (52.8215¢ per $100), which staff described as a 3.94% increase over the current tax rate.

Kevin, the city staff presenter, said the proposed tax rate would increase the average homestead owner’s city tax bill by about $77 annually and estimated the proposed levy would raise $715,388 more general-fund revenue than the previous year, with $167,512 of that total coming from new property added to the tax roll. He described the proposed budget as showing a net general-fund revenue of $353,000 and called out capital needs including projects from a recently approved parks and trails master plan (estimated at $4.5 million), facility repairs (roofing, AC), planned equipment replacements, and a multi-year facility maintenance schedule.

Residents who spoke during the public hearing pressed the council to target additional funding and stronger enforcement to neighborhoods north of the railroad. Josephina Bonner, a neighborhood resident, urged the council to fund ‘‘enforcement resources, hire or designate staff to respond to violations . . . support neighborhood cleanup days with equipment, dumpsters, and disposal service’’ and to update ordinances to make them ‘‘clear, fair, and enforceable.’’ Gail Little told the council, "I pay my taxes," and said letters from code enforcement had not produced lasting cleanups in her neighborhood; multiple residents called for direct street and drainage repairs and safer bus stops.

Council members discussed alternatives including keeping the current rate or a modest increase. Several members noted recent depletion of reserves and argued that additional revenue is needed to maintain services, pay employees competitive wages and address infrastructure. After discussion, a motion to approve the budget as presented passed on roll call. The council then approved, on first reading, an ordinance ratifying property tax revenue in the budget and read the specific motion required by Texas law to adopt a tax rate that exceeds the no-new-revenue rate. Staff had calculated the no-new-revenue tax rate at 0.4773 under Texas Tax Code chapter 26.04; the proposed 0.528215 rate is higher than that figure.

Kevin publicly thanked the finance department for preparing the budget materials. Council members and residents said next steps will include budgeting specific work for code enforcement, street and drainage repairs and continuing community outreach. The ordinance levying taxes was adopted on first reading; further action is required for the tax rate to take final effect per statutory timelines.