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The Farmers Branch City Council adopted a $178.5 million operating and capital budget Sept. 15, setting city spending for the fiscal year that begins Oct. 1.
Ordinance 4014 sets total operating and capital expenditures at $178,474,326 for fiscal 2026-27. It also adjusts the current year’s budget to reflect updated revenue and spending estimates. The new fiscal year runs through Sept. 30, 2027.
Finance Director Jay Patel said the spending plan grew out of council discussions that began early in the year. Staff developed the budget around four council priorities: public safety, economic development, public infrastructure and connected neighborhoods. Council members also asked staff to consider the city’s longer-term financial position.
“We’re not building a budget for just today,” Patel said. “We’re building a budget for today and the future Farmers Branch.”
The budget was developed using a property tax rate of $0.5435 per $100 of taxable value, unchanged from fiscal 2025-26. Higher property values and new construction, however, mean the city expects to receive more property tax revenue even without raising the rate.
Because the budget anticipates more property tax revenue than the previous year, the council was required to hold a separate vote ratifying that increase. Resolution 2026-122 passed 4-1, with council members Lupe Gonzalez, Tina Bennett-Burton, David Reid and Elizabeth Villafranca voting yes and Roger Neal voting no.
“We’re looking to keep the rate the exact same, but due to appreciation in property value and new construction in our city, you’ll see an increase in revenue associated with property tax revenue within the budget,” Patel said.
City management submitted the proposed balanced budget July 31. The city held a budget town hall Aug. 25, and the Finance Department returned to the council Sept. 1 for an end-of-year budget discussion before the Sept. 15 adoption.
The Sept. 15 action adopted the spending plan but did not set the final property tax rate. The council completed the tax-rate process at a special called meeting Sept. 17, unanimously adopting the $0.5435 rate.
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