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Athens Council adopts $37.2 million FY2026 budget, keeps tax rate unchanged; revenue rises 2.89%
Summary
The Athens City Council unanimously approved the Fiscal Year 2026 budget totaling $37,216,259 and adopted a tax rate of $0.532751 per $100 valuation; higher property values mean a 2.89% increase in tax revenue despite the unchanged rate.
The Athens City Council on Sept. 8 adopted the City’s Fiscal Year 2026 Annual Operating Budget and approved an ordinance adopting a tax rate of $0.532751 per $100 valuation, actions the Council approved by unanimous 5–0 votes.
Finance Director Sarah Smith told the Council the proposed tax rate remains unchanged from the prior year at 0.532751 — split 0.456819 for Maintenance & Operations (M&O) and 0.075932 for Interest & Sinking (debt service) — but increases in property valuations produce an effective 2.89% increase in tax revenue. Smith presented the M&O revenue calculation of $5,599,000 (budgeted at 98% or $5,487,000) and an Interest & Sinking calculation of $930,675 (budgeted at 100%). Total projected revenue for FY2026 was listed as $6,529,768.
On a motion by Mayor Aaron Smith — "I move to approve the Resolution ratifying the tax revenue increase included in the Fiscal Year 2026 Annual Operating Budget" — and a second by Councilmember Bryan Barker, the Council approved the statutory ratification required under Chapter 102.007(c) of the Texas Local Government Code; roll-call votes were all recorded as aye.
The budget ordinance adopting the FY2026 Annual Operating Budget was presented as a final reading. Smith noted a general fund revenue-over-expenditure amount of $4,120 and total expenditures across all funds of $37,216,259. On the same motion-and-second pattern used earlier, the Council voted 5–0 to adopt the budget.
Councilmembers and staff emphasized that the tax rate itself did not change, but the increase in revenue is driven by higher property valuations across the city. The ordinance adopting the tax rate was approved on final reading by a 5–0 roll-call vote.
Next steps: the City Secretary will record the adopted ordinances and staff will implement the FY2026 budget and updated rate schedule. The City cited the Local Government Code requirement for ratifying tax revenue changes as the reason for the separate resolution action taxing the increase in revenue that results from rising valuations.
