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City Council · September 28, 2026
Rockwall Adopts Budget and Tax Rate, Sends Two Hotel Tax Requests Back To Committee
Rockwall City Council used its September 28 special meeting to take up the city budget, tax rate, and other agenda items. The meeting included public comment on taxes, employee pay, public safety staffing, and hotel occupancy tax funding.
Budget Passed On 4 To 3 Vote
Council approved the city’s fiscal year 2027 budget by a 4-3 vote. During discussion, members debated whether to keep the no-new-revenue tax rate or adopt a higher rate. The approved budget included use of reserves for some equipment costs, which council members said freed up money for employee retention payments.
Tax Rate Approved At No-New-Revenue Level
Council later voted 5-2 to adopt the no-new-revenue tax rate of 0.258007 per $100 of assessed value. During discussion, some members said residents are under pressure from rising tax bills and other costs. Other members said the city could face a tougher budget next year without more recurring revenue.
Employee Retention Payments Stayed In The Budget
The adopted budget included one-time retention payments discussed as 1.5% for first responders and 1% for other city employees, with a $1,000 minimum. During debate, members said the payments were intended to recognize city employees during a difficult budget year. Other members said one-time payments would not address longer-term pay and staffing issues.
Public Safety Staffing Concerns Dominated Public Comments
Residents and representatives from police and fire associations urged council to think beyond this year’s budget. Speakers raised concerns about police and fire staffing, response capacity, and whether compensation remains competitive as the city grows. Several speakers called for clearer numbers, long-term planning, and more discussion about service levels and funding.
Calls Grew For A Five-Year Financial Plan
Multiple speakers urged the city to prepare a five-year budget plan, with some also mentioning a ten-year plan. Council members also referred to the need for a longer-term plan during debate, including for compensation, facilities, roads, and future capital needs.
Pay System Questions Remain Unsettled
Council members discussed concerns about the city’s compensation structure. The mayor said the city should compare police and fire pay more broadly than its current group of market cities and aim to be in the top 10 paid among those cities. No new compensation system was adopted at this meeting.
County Funding Item Was Tabled Again
On the consent agenda, council voted unanimously to table item No. 2 until the October 19 meeting. The city manager said two county commissioners had been assigned to meet with her about the city’s concerns, with that meeting set for the following Monday. No final action was taken on that item.
Economic Development Budgets Were Approved
Council unanimously approved the fiscal year 2027 budgets and amended fiscal year 2026 budgets for the REDC and the Rockwall Technology Park Association, along with the REDC annual work plan for fiscal year 2027.
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