Terrell staff proposes Aug. 26 public hearing on 2025 tax rate as council weighs modest increase to cover debt, staffing

Interim City Manager Mark Mills asked the Terrell City Council on Aug. 14 to set a proposed 2025 tax rate on the public notice and to schedule an Aug. 26 public hearing at 6 p.m., with a follow-up meeting at 1 p.m. on Aug. 29 for a final vote.

Mills told the council the notice must list a proposed tax rate — the highest rate the council could legally adopt — but that the council could adopt any lower rate later. He said the citys current total tax rate is 76.42 cents per $100 of valuation and that the voter-approval (rollback) ceiling is about 86.2142 cents, which would trigger an automatic election if adopted. "The proposed tax rate is the highest tax rate that the city council can consider and adopt," Mills said.

Why it matters: Council members said they need to balance service levels, hiring and infrastructure work against the political and practical impacts of raising taxes. Mills and councilors discussed two components of the rate: maintenance and…