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McLennan County sets proposed 2025 tax rate, schedules public hearings as budget talks continue
Summary
McLennan County Commissioners on July 29 set a proposed 2025 tax rate of 0.339805 and filed a proposed FY2026 budget, citing a $711 million decline in certified property value and ongoing decisions about personnel and projects. Public hearings are set for Aug. 19 (tax rate) and Aug. 26 (budget adoption).
The McLennan County Commissioners Court voted July 29 to set a proposed 2025 tax rate of 0.339805 — split as 0.028849 for interest and sinking and 0.310956 for maintenance and operations — and scheduled public hearings on the rate and the FY2026 budget. Judge reading the proposed rate stated, “The proposed tax rate of 0.339805 for the 2025 tax year. This rate is comprised of 0.028849 for interest in sinking and 0.310956 for the maintenance and operations.”
County staff told the court that certified taxable values had fallen about $711 million from recent estimates, a change that reduced ad valorem revenue projections by roughly $2.4 million and tightened the gap between projected revenues and expenditures for next year. Staff said the budget includes an embedded 1.76% COLA for non‑step employees, funding for step pay scenarios and selected personnel requests, and conservative assumptions about participation and claims in county health coverage.
Commissioners reviewed tradeoffs between proposed revenue choices and program priorities. Staff walked the commissioners through scenarios showing a 2‑cent increase to the tax rate would reduce the structural gap but that the court could still lower the rate before final adoption. Commissioners asked staff to continue identifying savings and to model alternatives so they could consider a lower adopted rate in August.
The court set the required public hearing on the proposed tax rate for Tuesday, Aug. 19, 2025, at 5:30 p.m. and the public hearing and adoption date for the FY2026 budget for Tuesday, Aug. 26, 2025, at 9:00 a.m. in the McLennan County Commissioners Courtroom. The vote on the proposed rate passed with three yes votes and two no votes in the record.
What happens next: staff will post the proposed budget and tax‑rate notices, continue to refine estimates (including incentives, step pay, and new positions) and return to the court with savings opportunities and any updated forecasts before the Aug. 26 adoption vote.
