Wesco adopts FY2026 budget, keeps tax rate at 0.6867 while state notice must call it an 'increase'

The Weslaco City Commission voted unanimously on Sept. 16 to adopt the city’s fiscal year 2026 budget and to set the city’s ad valorem tax rate at 0.6867 per $100 valuation, the same rate as the prior year. The budget ordinance was approved on final reading after staff said the only addition since workshops was a construction fund.

Rolando Garza, chief appraiser for the Hidalgo County Appraisal District, told the commission the district certified taxable values for Weslaco at approximately $3.3 billion — about a 10% increase from last year — and that 69,715 protests had been filed this cycle. Garza said the increase in the total taxable value, not a change in the city’s rate, is the primary driver of higher property tax bills for many homeowners. "Even though your rate is the same, you are collecting more," Garza said, explaining why state law requires the public notice to read as a tax increase when revenue collected will exceed the previous year.

Mayor and commissioners emphasized the city's efforts to manage services without raising the tax rate; staff noted public safety consumes a majority of the budget. "Public safety takes on about 54% of our budget," a city official said during the discussion, citing the competing demands of police, fire, water and infrastructure as costs rise. Commissioners discussed the theoretical effect of lowering the rate by pennies — which would reduce city revenue — and the fiscal limits that poses for meeting service needs.

The appraisal district briefing also highlighted changes in exemptions that affect school taxes: Garza said the homestead exemption for school district taxes increased to $140,000 and the over‑65 exemption increased to $60,000 for 2025; those changes alter school tax calculations but do not eliminate the impact of rising valuations on homeowners.

The ordinance adopting the budget and the ordinance adopting the tax rate were both approved by roll call vote. City staff said the budget takes effect Oct. 1, 2025; the commission directed staff to continue outreach explaining the change in taxable values and the city's continuing finances to residents.

What happens next: The budget ordinance is in effect for FY2026 and staff will continue public information efforts on exemption eligibility and protest procedures. Residents who wish to protest their appraisal were reminded they may file in person, by mail or online, and the appraisal office staff offered to return for further public Q&A if needed.