Tax Rate Ceiling Moved Forward On Split Vote

Princeton City Council voted 4-2 to advance a resolution proposing a 2026-27 property tax rate of $0.472959 per $100 valuation and to schedule a public hearing on that rate. City staff said the figure matches the voter-approval rate and is the highest rate council could adopt without first taking the question to voters.

Chief Financial Officer Kelly Wilson told council the no-new-revenue tax rate is $0.445102 per $100 valuation. Because the proposed rate is higher than that benchmark, the city is required to hold a public hearing before taking final action. Wilson also said notice of the proposed tax rate would be published in the Princeton Herald on Sept. 10.

Council members emphasized that the Sept. 8 vote did not set the final tax rate. Earlier in the meeting, council separately approved submission of the calculated tax rates and scheduled a hearing process tied to both the budget and tax rate. Questions from council focused on how the hearings would work and why multiple agenda items were needed to comply with state requirements under the Texas Local Government Code and Tax Code.

The vote on the tax-rate resolution split the council. David Grace, Mike Washington, Brian Deffenbaugh and David Long voted yes, while Christina Todd and Florencio Johnson voted no. Mayor Brianna Escobar did not vote because there was no tie.

Later in the meeting, after executive session, council reopened the matter and changed the hearing schedule. The budget public hearing was moved to Sept. 21 at 6:30 p.m., and the property tax rate public hearing was moved to Sept. 28 at 6:30 p.m. The revised tax-rate resolution again passed 4-2, leaving the proposed ceiling in place while the public hearing process continues.