• Business Business

Texas city's 2027 budget would raise property taxes, add $10 to monthly water bills

City projections indicate property tax collections will reach about $33.5 million.

A water tower and a fire station are visible in a Texas town with various buildings and trees nearby.

Photo Credit: City of Tyler, Texas

Residents in Tyler, Texas, could soon face higher living costs under a proposed 2027 city budget that would raise property taxes and water bills while also changing how stormwater fees are calculated.

Here's what to know

Under the proposed spending plan for the next fiscal year, the typical homeowner would pay about $693 a year in city property taxes, an increase of roughly $48. The same proposal would also add $5 to water bills Oct. 1 and another $5 on Jan. 1, KLTV reported.

City projections indicate property tax collections will reach about $33.5 million, roughly $1.7 million above the current amount.

Per KLTV, city officials tied the water increases to debt required under the federal wastewater consent decree, and they expect another rate hike in 2028.

Beginning Jan. 1, the city would stop basing stormwater fees on 7% of water, sewer, and irrigation charges and instead calculate them using the amount of hard surface on a property, including roofs, driveways, sidewalks, and parking lots.

"This stormwater fee change is about protecting the residential customers," Mayor Stuart Hene said, per KLTV. "The cost should reflect the impact a property has on the stormwater system, so residential customers are not adversely affected, effectively subsidizing larger commercial or industrial properties that create significantly more runoff."

More background

Included in the budget was $13.6 million in cash-funded capital work for water and wastewater systems, covering projects at Lake Tyler and two wastewater treatment plants and avoiding new debt connected to those improvements.

The proposal also continued to move toward uniform volume rates for water and wastewater, KLTV reported. For customers within the city limits, both residential and commercial users would continue to pay $3.75 per 1,000 gallons for their first 25,000 gallons of water, while residential wastewater charges would remain capped at 10,000 gallons.

What's being done?

Public safety items in the proposal included $523,768 for the police department's Axon subscription program, according to KLTV, as well as major fire department spending, including $8 million to rebuild Fire Station 2 and $5.8 million for a fire training facility.

The draft budget also earmarked about $12.3 million for replacement police and fire vehicles and equipment, including six fire engines and two ladder trucks.

KLTV reported that city leaders want to create a new street crew so repair jobs now outsourced to contractors can be handled internally. Officials estimated that would save about $200,000 in the first year and expand the number of lane miles repaired through asphalt enhancement and crack-sealing work.

For infrastructure, the proposal designated $700,000 for stormwater capital projects and $5.8 million for drainage improvements, while it noted city vehicles with already installed technology could be used to spot potholes and pavement wear more quickly, KLTV reported.

Budget and tax-rate hearings were set for Aug. 26 and Sept. 9, with final action expected Sept. 9.

"Responsible budgeting also means looking for opportunities to work more efficiently," Hene said. "If we can complete more work, improve service, and reduce costs over time, that puts the city in a stronger position to keep investing in the services our residents rely on while at the same time preparing for the city's future."

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.

Cool Divider