Tax Rate Debate Ends With Split Vote

Rockwall City Council split over how much tax rate room to advertise as it begins work on the city’s 2027 budget. After discussing the tight spending plan, council first considered advertising the no new revenue rate of 25.8007, but that motion failed 4 to 3.

Council then voted 5 to 2 to advertise a 26.27 tax rate, which does not set the final tax rate but establishes the ceiling for what can later be adopted. Members also set a special budget meeting for Sept. 28 at 6 p.m. for further discussion.

The debate came as city leaders described a budget with little room for new spending. City Manager Mary Smith told council the plan left out new positions, market pay adjustments, and most equipment purchases, and she said some department budgets had already been reduced midyear. She also said the budget relied on conservative revenue estimates.

During the discussion, several council members said they wanted room to cover employee raises and possible maintenance needs, while others argued the no new revenue rate better matched the budget as proposed. The vote does not lock in the final tax rate, which will still come back later in the budget process.

The council is expected to continue budget and tax rate discussions before final adoption later in September.