Carrollton finance director outlines FY26 budget plan; council sets advertising tax rate and Sept. 9 public hearing

City Finance Director Melissa Everett presented an overview of the FY2026 proposed budget during the Aug. 5 meeting, giving council an early look at revenues, debt and timing for adoption.

Everett told council the upcoming budget package totals roughly $323,000,000 in operating funds and $133,000,000 in capital funding. She said the general fund remains heavily weighted toward public safety (about 70% on average) and that recurring revenue relies principally on property, sales and franchise taxes. Everett noted the city’s assessed valuation process and that portions of the current assessed value are under appeal and litigation; she presented an approximate new net tax level valuation of about $24.1 billion (a roughly 4% increase before final adjustments).

On tax‑rate procedure, Everett explained the city must advertise a proposed rate for legal purposes but may adopt a lower final rate. Councilmember Jason Carpenter read a scripted motion to set the advertising rate at 53.875¢ per $100 valuation and to set a public hearing and formal adoption consideration for Sept. 9, 2025. The motion passed unanimously.

Key fiscal details at the briefing included updates on capital priorities (pavement, parks master plans, equipment), an advisory note that Dallas Water/TRA utility pass‑throughs likely raise resident utility costs, and a recommendation to adopt certain ATB (add‑to‑budget) items or hold them for further review. Everett said the budget must be adopted by Sept. 9 to meet legal deadlines.

What’s next: staff will refine assumptions, return with requested benchmarking (construction inflation indices, engineering cost escalators) and present final appropriation and tax‑rate options for adoption after public hearings in September.