Council adopts budget, tax rate

Aledo City Council voted unanimously Thursday night, Aug. 20, to adopt a $17.6 million fiscal year 2027 budget and a new property tax rate, following back-to-back public hearings that drew no citizen comment.

The council meeting was streamed live for the first time on the city's YouTube channel.

City Manager Candice Edmondson walked council through the budget, which projects about $15.6 million in revenues and $17.6 million in expenditures across all city funds — a gap covered in part by transfers from the utility capital fund to support ongoing infrastructure work.

“The difference in the citywide totals comes primarily from one-time capital projects that are being paid for with money the city set aside in prior years,” Edmondson said. “In other words, we are intentionally using accumulated savings to pay cash for projects such as park improvements and water and wastewater infrastructure rather than taking on additional debt. Even after these planned investments, the city’s primary operating funds remain well above our required 180-day reserve levels.”

The general fund itself is balanced, with about $5.379 million in revenue against $5.179 million in expenditures and an anticipated $200,000 operating surplus. The revenue growth is attributed to rising property values and sales tax collections, while new spending includes:

• Three new police officers
• A new Development Services director position
• An increase in annual street maintenance funding to $400,000
• A new staff position to oversee city facilities and support parks operations
• About $3.9 million in capital projects, including water and wastewater infrastructure, utility relocation along FM 1187, community center renovations, a new police vehicle, and a $500,000 “placeholder” for park improvements tied to an upcoming parks master plan.

The public hearing on the budget drew no speakers, and the council adopted the budget unanimously on a roll-call vote.

The council also adopted a new property tax rate of $0.352415 per $100 of assessed value — a decrease of about 0.83% from the current rate of $0.355353. Despite the lower rate, the city is required by state law to hold a public hearing and use specific statutory language describing the move as a tax increase, because the rate still exceeds the "no-new-revenue" rate of $0.349703.

Edmondson explained the higher revenue results from growth in the city's certified taxable value — which the Parker County Appraisal District set at just over $1.057 billion in July — rather than from a higher rate itself. The adopted rate sits just under the city's "de minimis" rate of $0.352416, a threshold available to cities with a population under 30,000 that allows for additional maintenance and operations revenue.

As required, the motion to adopt included language noting the rate reflects "effectively a 7% increase in the tax rate," Edmondson said.

The rate passed 5-0 on a roll-call vote, as did a follow-up motion formally ratifying the resulting increase in property tax revenue, as mandated under state local government code.

Employee benefits package

Council members also approved the city's FY 2027 employee benefits package. After United Healthcare initially proposed a 32.5% renewal increase on medical coverage, the city's benefits consultant shopped the plan to other carriers — 15 declined to quote, a reflection, Edmondson said, of Aledo's small size as an employer. The city ultimately stayed with United after negotiating the increase down to 18.8% by raising deductibles across its PPO, HMO, and a high-deductible health-savings plan.

The PPO (which most employees are on) deductible increased from $1,000 to $2,000 for individuals and from $3,000 to $6,000 for family.

The city pays the premium for employee-only insurance.

The city is also switching dental and vision coverage from Guardian to Pacific Life, yielding a 4% savings on dental and 20% on vision, with a four-year rate lock on vision.

Council recognitions

In closing comments, Mayor Shane Davis thanked police and public works staff for their efforts during the recent heat wave and the first week of school traffic congestion.

“It's hot out there,” he said. “Not just in … the outdoor temperature, but the in the temperature of our of our citizens with all the traffic. And I know that you you hear it directly ... So, thank you for all you do out there.”

Councilman Matt Poston thanked Aledo Police Chief Carol Riddle and the department for organizing a well-attended bike rodeo at the high school with support from local businesses and the Weatherford Mountain Bike Club.