Addison proposes mostly flat tax rate for FY2026, shifts 2.5¢ to economic development and budgets 1% sewer increase

Finance staff presented the Town of Addison’s proposed FY2026 budget and the tax‑rate framework to council on Aug. 5, laying out the path for public hearings and final adoption in September. The proposed overall property tax rate in staff’s packet matched the adopted 2025 rate (60.9822 cents) but reallocates a portion of the maintenance & operations (M&O) levy to other priorities: staff said the M&O rate would decline fractionally while 2.5 cents of property tax was directed to the town’s economic development fund and debt service rose by about 0.5 cent to cover obligations that include recent bond program disbursements.Staff described central budget assumptions: a 3.2% increase in certified taxable value overall (with roughly $80 million in new value added to the roll), a proposed 5.8% increase in sales‑tax revenue projections, a 4% compensation adjustment for employees plus implementation funding for public safety market adjustments, and an assumed 7% health‑insurance cost increase. The utility projection included a 1% sewer rate increase — staff said Trinity River Authority notified the town of a wholesale sewer charge increase and the 1% adjustment is proposed to absorb part of that wholesale rise.The presentation outlined the schedule and statutory notices required for tax‑rate adoption: staff will publish required notices and hold public hearings Sept. 2 and Sept. 9, with budget and tax‑rate votes expected later in September. Staff also described recurring resource‑maximization savings that collectively reduced operating costs across departments and noted that finance will present department‑level details in subsequent meetings.Council asked questions about certified values and lawsuit impacts on large commercial properties, the composition of personnel cost increases, and how the proposed allocations affect an average homeowner. Staff said the average Addison homeowner would see roughly $16.33 monthly increase from the combined effect of property tax allocation changes and the 1% sewer increase, using the town’s assumptions. No final budget or tax rate was adopted at the workshop; the packet will move through the public‑hearing and adoption schedule required by state law.