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Commerce staff proposes balanced fiscal 2027 budget, keeps tax rate at 0.8306
Summary
City of Commerce staff presented a balanced proposed FY27 budget that holds the city tax rate at 0.8306, shifts revenue from debt service to operations via refunding, funds $8 million in wastewater improvements and proposes a $6 monthly utility increase for typical residential customers.
City of Commerce staff presented a proposed fiscal 2027 budget to the mayor and council that keeps the city’s property-tax rate at 0.8306 while presenting a balanced primary-government plan totaling roughly $17.2 million.
In an 80-minute executive summary, the staff member leading the presentation said the general fund is projected to bring in just over $9.0 million and the utility fund about $7.9 million. The proposed primary-government package combines the general fund, the utility fund and a dedicated street-maintenance fund. "We are presenting to you today the budget that staff is proposing for the upcoming fiscal year," the staff member said, noting the printed budget book contains some outdated numbers and that an updated digital version would be posted on Monday.
The budget keeps the tax rate unchanged rather than adopting the state's calculated "no new revenue" rate (0.852403). "We're proposing to keep the tax rate the same at 0.8306," the staff member said, adding the city plans to restructure outstanding debt so less revenue flows to interest-and-sinking and more goes to maintenance and operations. Staff said that approach reduces total property-tax revenue citywide compared with the state's baseline because assessed values fell, but preserves services while shifting how revenue is allocated.
The presentation also highlights near-term priorities: expanded street maintenance funded by a utility-bill fee that will generate about $250,000 a year, a new compensation plan that applies citywide, continued pursuit of grants (including one state grant staff described as having a strong probability and valued at roughly $1,000,000), and a transfer of day-to-day responsibility for youth recreation programming from the Boys and Girls Club of Northeast Texas to the city. The council will review the proposed budget over two months and may revise it before final adoption; staff noted state law requires adoption by the end of September.
