Texas budget promises city raises without property tax hikes, and only one small trade-off

In Longview, Texas, officials are considering a budget that would raise the wages of city employees while leaving property taxes unchanged, a mix that could ease some pressure for residents keeping an eye on both municipal spending and their own monthly bills.

For households, the clearest trade-off would be a small one: a proposed 46-cent increase in the monthly sanitation charge.

Here's what to know

According to KETK, the budget before the Longview City Council is for the 2026-2027 fiscal year and includes pay increases for city workers without a property tax hike. It would also keep sewer and water rates at their current levels.

Those pay increases would be handled through a market-based compensation plan. KETK reported that employees would receive at least a 2% raise unless they are in line for larger adjustments under the new system.

There would still be a modest change to one regular household cost. Under the proposal, sanitation rates would increase by 46 cents per month to help cover employee raises.

More background

KETK reported that one of the biggest pressures on the proposed budget is a $1.5 million revenue loss tied to Texas changes to business property tax exemptions. Even with that reduction, the city says the plan would maintain existing services.

Longview's proposal reflects a challenge facing many cities: how to keep municipal jobs competitive enough to attract and retain workers without passing along major cost increases through higher taxes or utility bills.

A sanitation increase of less than 50 cents per month would be far smaller than a broader property tax hike.

What's being done?

The city's approach is focused more on adjustment than expansion.

When pay falls behind the market, local governments can struggle with vacancies, turnover, and service disruptions. A market-based pay plan is meant to address that by bringing wages more in line with what workers can earn elsewhere.

The proposal is not final. KETK reported that the budget will still go through public review in city council hearings before officials decide on approval in September.

As Longview City Manager Rolin McPhee put it: "We didn't propose any new programs or services for this budget year. So this budget is continuing to do what we are doing right now."

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