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City Council put to rest months of community speculation confirming property tax rates will remain unchanged for the coming year despite the city sitting on a $2.3 million budget surplus generated by conservative financial planning and strong revenue performance.
City Manager Ben Williamson presented the fiscal year 2025-26 budget during the Sept. 2 council meeting, the final public hearing before the Sept. 16 adoption vote. He emphasized the city's continued focus on public safety, infrastructure, economic development and neighborhoods while maintaining fiscal responsibility.
"Every council priority remained in the budget. The tax rate remained flat," Williamson told council members. "We achieved that through operational efficiency and the support of the city council."
The announcement directly addressed rumors circulating throughout the community about potential tax increases. Councilmember Tina Bennett-Burton confronted the speculation head-on during the council meeting.
"There had been some scuttlebutt out there that we were raising taxes and we are not raising taxes, are we," Bennett-Button asked Williamson.
"We are not. The tax rate is remaining the same as it was in the current year. It is not going up," Williamson confirmed.
While Farmers Branch maintains stable finances, council members noted the stark contrast with neighboring municipalities facing difficult budget decisions. Councilmember Elizabeth Villafranca highlighted the city's advantageous position compared to other North Texas communities.
"Our city is in such a great position," Villafranca said. "There are some neighboring cities whose names I will not mention who are not in the same position who are going to be forced to make some really difficult decisions in cutting services, cutting amenities, closing swimming pools and we are doing just so well."
The current fiscal year is ending with a projected $2.3 million surplus, generated primarily from interest income, court fines and sales tax revenue that exceeded conservative budget projections. Williamson attributed the positive results to the city's deliberate approach of underestimating revenues while maintaining operational efficiency.
Councilmember David Reid praised the thorough budget development process, saying "everything's been disclosed, discussed, dissected, bisected, everything. And, I think we have a pretty clear picture of a budget. It's a very strong budget."
Much of the discussion centered on allocating the unexpected surplus, with council members proposing various projects and funding strategies. During the presentation, Williamson outlined a strategic approach including $1 million for capital improvement projects, $200,000 for a columbarium project, $500,000 for parks improvements combining Squire Park and Mercer Park upgrades, $200,000 for economic development, $200,000 for the demo rebuild program, and $200,000 for a fitness park at the Justice Center.
Other council members offered alternative proposals, with some favoring increased general fund reserves and others supporting specific infrastructure improvements.
Councilmember Roger Neal advocated for addressing one of the city's major long-term obligations. "I think I'd like to start by putting a million into the landfill fund. It's one of their bigger liabilities we have," Neal said, referencing the $38 million target balance needed for landfill closure and the required 30-year monitoring period mandated by state law.
The landfill closure fund represents a significant long-term financial commitment that has remained a priority for city leadership. "That's money we have to have to manage the closure of the landfill and not only to close it but to continuously monitor it for 30 years after it closes and that's required by state law," said Mayor Terry Lynne.
The city has implemented a gradual fee increase over the next 20 years to build the closure fund, with residents currently paying an additional $5 monthly fee that will eventually reach market rates. The systematic approach allows the city to prepare for the inevitable closure costs without shocking residents with sudden fee increases.
After extensive discussion, council members agreed to temporarily place the entire $2.3 million surplus in the general fund while continuing deliberations about specific project allocations. The decision provides flexibility for future discussions about community priorities and capital needs.
The budget presentation emphasized the city's comprehensive year-long development process that began in February with strategic planning sessions. Williamson stressed that this represented careful planning rather than rushed decision-making.
"This wasn't a budget that was put together without care or consideration for the public," Williamson said, highlighting extensive community engagement including an August town hall meeting that drew about 40 residents.
The city operates with three primary funds: the general fund covering day-to-day operations like police and fire protection, the self-supporting water-sewer-stormwater fund financed entirely through utility fees, and the capital improvement project fund for major infrastructure investments. The water and sewer operations remain debt-free and financially independent while treating approximately 5 million gallons of wastewater and delivering up to 10 million gallons of clean water daily to residents.
Williamson emphasized the importance of long-term financial planning, noting that effective budgeting requires looking beyond the immediate fiscal year. The current budget incorporates forecasts extending two to seven years ahead, ensuring the city maintains adequate reserves to respond to emergencies or unexpected challenges.
The council scheduled final budget adoption for Sept. 16 at 6 p.m. at City Hall, where members will also formally adopt the tax rate and conclude the budget process that began eight months earlier with strategic planning sessions. The fiscal year 2025-26 budget takes effect Oct. 1.
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