Carrollton Council adopts 2026 budget, sets tax rate after split vote

The Carrollton City Council on Sept. 9 adopted the city's operating and capital budget for fiscal 2026 and approved a property tax rate that staff said represents an effective 4.45% increase over the prior rate when inflation adjustments are included.

Finance Director Melissa Everett told the council the proposed general fund is $144.9 million and the city plans $133 million in capital spending. The budget package includes a 2.6% across‑the‑board pay increase for employees and a 1.25% one‑time payment. Everett said staff has $1.6 million in recurring programming capacity available and that many infrastructure items will be funded PAYGO rather than by bond.

Councilmember Carpenter moved to approve the operating and capital budget; Mayor Pro Tem Axberg seconded. The motion passed; the minutes record Councilmember Fleming voting in opposition. Shortly afterward the council adopted a tax rate of 53.75 cents per $100 of assessed value, which staff explained includes a 3.1% core inflation component and amounts to a 0.35 percentage point net increase beyond inflation.

The council then approved a resolution ratifying the property‑tax increase reflected in the adopted budget. In council discussion staff and members emphasized the city's continued focus on public safety spending and large capital investments while pointing to a 12‑year run of rate reductions prior to the action this year.