Southlake considers lowering property tax rate for 2026, continuing multiyear trend
Southlake City Council members in September will vote on a proposed $137.7 million city budget for 2026-27 that includes a decrease in the property tax rate.
The lower tax rate, if approved after public hearings and council votes scheduled Sept. 2 and 16, would continue a multiyear trend of the council lowering the rate at the same time Southlake’s continued growth has boosted municipal revenue.
The proposed city budget includes a $56.4 million general fund. The staff has proposed a property tax rate of 0.295 per $100 of value assessed for tax purposes, down from 0.305 in the current fiscal year, which ends Sept. 30. The Southlake council has for years been lowering the property tax rate while leaning on the city’s expansion to maintain and expand services.
The proposed budget “prioritizes key investments in public safety, infrastructure, (and) quality of life programs, and ensures that our residents continue to experience the Southlake standard,” Alison Ortowski, the city manager, told council members during a budget presentation at their Aug. 19 meeting.
In addition, the council at its Aug. 19 meeting also approved a rate increase for fiscal 2026 proposed by Community Waste Disposal, the city of Southlake’s waste management provider. It proposed a 4.4% monthly rate increase for residential services, beginning Oct. 1. The annual cost adjustment is based on the Consumer Price Index, fuel costs and landfill rates.
During the budget discussion at the Aug. 19 meeting, Mayor Shawn McCaskill told council members the proposed budget follows the city’s gradual transition from years of high growth to ones of more moderate growth and needs to maintain infrastructure, including roads, water and sewer.
“We want to get those taken care of to maintain the standards that our residents are used to and deserve,” McCaskill told council members.
During the council’s Aug. 5 meeting, Community Waste and the city staff attributed the proposed cost increase to consumer inflation, fuel costs and landfill rates.
Lauren LaNeave, interim director of Southlake Public Works, and Jason Roemer, president of Community Waste Disposal, reported meeting all performance measures and continued investment and community involvement. Its metrics include responsiveness to customer complaints at 0.11 per 1,000 service opportunities, well below the industry average.
McCaskill commended CWD for its excellent service and
responsiveness. The 4.4% Oct. 1 adjustment, amounts to an increase of $0.88 per home per month.
At the Aug. 5 meeting, Sharen Jackson, the city’s chief financial officer, presented options for the fiscal year 2026 tax rate. She provided historical data on property and sales tax performance, noting the city’s ongoing transition to more maintenance and operation and a $1 million reduction in general fund property tax revenue for fiscal 2025 due to various factors.
Two tax rate options for 2026 were presented: a proposed rate of $0.295 (a reduction from the current rate of 0.305) per $100 of assessed valuation and the “no new revenue rate” of $0.273677.
The tax rate increase would result in a 2026-27 city tax bill of $2,950 for a home valued at $1 million for tax purposes. Assuming the same home were valued at $1 million in the current year, the city tax bill is $3,050.
Council members leaned toward the $0.295 rate to balance tax relief with the need to fund city services and infrastructure maintenance, and avoid increased debt amid inflationary pressures.
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Eric Zarate is a freelance journalist.
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