On Sept. 17, the Midland City Council held a second hearing to discuss and vote on the fiscal year 2024-25 budget and tax rate.
The first agenda item addressed the city budget for the upcoming fiscal year. The budget, totaling $454 million, includes general fund allocations and enterprise funds. Enterprise funds, as explained by Mayor Lori Blong, are used for services like water and sanitation that are not derived from city taxes.
The general fund, which receives $176 million, is the most discussed part of the budget, covering various city operations through revenue from property taxes, sales taxes, and fees.
Regarding property taxes, the council passed a resolution that ratified the increase in property tax revenue. While the tax rate itself will see a decrease, the city’s overall revenue from property taxes is expected to rise due to increasing property evaluations and the addition of new properties. According to the National League of Cities (NLC), this is a common occurrence in municipal budgeting, where higher property values result in increased revenue without raising the tax rate.
The approved tax rate for fiscal year 2024-25 is $0.348862 per $100 valuation. The motion passed 5-1, with Councilwoman Poole voting in opposition.
According to Texas Realtor’s August 2024 Market Statistics, the median home price in Midland County amounts to $393,000. For a home valued at the median price of $393,000, the property tax based on the approved tax rate of $0.348862 per $100 valuation would be approximately $1,370.50.
This is the second consecutive year that the City Council has reduced the overall tax rate, according to Midland City Manager Tommy Gonzalez.
The final vote on the tax levy ordinance was also approved. This ordinance allows the city to collect property taxes for the upcoming year and is part of the legal process to ensure the city has the funds to operate, maintain services, and complete projects like road repairs and public safety. Even if the tax rate goes down, the city can still bring in more money if property values go up or if new properties are added. This vote helps ensure the city can manage its budget and track spending throughout the year.