Ennis adopts FY2026 budget and a 7.7% property tax increase after extended debate

The Ennis City Commission adopted a $74,227,562 budget for fiscal 2026 and voted to raise the city property tax rate to 0.680708, an effective 7.7% increase, after a prolonged discussion about whether projected investment returns could offset the need for higher taxes.

Mayor Cameron Rayburn said he opposed the increase, arguing the city had investable balances that could be used instead. "I have concerns with this budget and the fact that this budget is built upon, increasing our property tax rate by approximately 7.7%," Rayburn said during the debate, adding that previous commissioners had discussed putting funds into investment pools to generate revenue without raising taxes.

Supporters of the increase, including multiple commissioners and staff, said the proposed tax rate was necessary to fund decision packages, maintain reserves and cover an anticipated sales-tax shortfall. Commissioner Haney, who backed the budget, said staff had already identified program and staffing needs and that delaying the increase could force cuts. "I don't think we have a choice now, except to raise the tax rate for 1 year," Haney said during the discussion.

Director Meeley, presenting the budget, said the plan pared down capital spending and reduced staff levels by about 4 full-time equivalents while preserving reserves. The budget summary submitted to the commission shows proposed general-fund expenditures of $31,290,058 and projects a general-fund reserve of approximately 31.4% at year-end under the adopted plan.

The commission initially took a roll-call vote on the tax-rate ordinance but failed to reach the 60% threshold required for adoption because two members were absent, leaving only four votes in favor. The body recessed to contact absent commissioners, reconvened with a full quorum and reconsidered the ordinance. On the motion to adopt the higher rate, the commission approved the ordinance in a 6–1 roll call, with Mayor Rayburn recorded as the lone No vote.

The commission also adopted a related ordinance ratifying the revenue increase that follows the tax-rate action. City Secretary Wade recorded the roll calls and certified the votes.

What happens next: the tax-rate ordinance sets the rate for FY2026 and triggers the administrative steps to collect the property taxes under state deadlines. The commission directed staff to continue pursuing investment strategies intended to increase interest earnings; commissioners said they may revisit tax relief options next year if those earnings materialize and the city's revenue position improves.