City of Conroe proposes $362M budget with focus on property tax increases

In a pivotal workshop held on July 10, 2025, city officials in Conroe, Texas, gathered to discuss the budget for the upcoming fiscal year 2026. The atmosphere was charged with anticipation as the council reviewed the financial landscape that would shape the city’s services and infrastructure for the year ahead.

The proposed budget for fiscal year 2026 stands at a total gross revenue of approximately $362 million, reflecting a modest 5.7% increase from the previous year’s budget. However, this figure marks a 4.8% decrease from the fiscal year 2025 estimate, raising questions about the underlying factors, particularly the impact of interfund transfers. Without these transfers, the revenue would be around $282 million, indicating a 4.2% increase from the fiscal year 2025 budget.

Expenditures are projected to reach about $366 million, which is a 3.2% increase from the prior year’s budget and a significant 10.3% rise from the previous estimate. This increase in spending is attributed to various factors, including personnel costs and essential services that the city provides to its residents.

A key highlight of the meeting was the discussion surrounding the city’s workforce, deemed the most valuable asset. Officials announced a decrease in the contribution rate for the Texas Municipal Insurance System (TMIS) from 17.52% to 17.19%, which translates to a reduction of approximately $2,200 per full-time employee. This positive news was coupled with considerations for cost-of-living adjustments (COLA) for employees, with potential increases ranging from 1% to 3%, each carrying significant financial implications for the budget.

The council also delved into the general fund overview, revealing a gross revenue budget of $136 million for fiscal year 2026, which is a 4.5% increase from the previous budget. Property tax remains a primary revenue source, with the tax rate set to remain unchanged at 42.72 cents. The preliminary assessed value of properties has increased by 4.25%, which is expected to bolster property tax revenues.

As the meeting progressed, officials explored various scenarios for potential tax increases, which could yield additional revenue for the city. The discussions highlighted the importance of maintaining a balanced budget while ensuring that essential services, such as public safety and infrastructure maintenance, are adequately funded.

In conclusion, the workshop underscored the city’s commitment to fiscal responsibility while navigating the complexities of budget planning. As Conroe prepares for the upcoming fiscal year, the decisions made during this meeting will play a crucial role in shaping the city’s financial health and the quality of life for its residents. The council's proactive approach to budgeting reflects a dedication to transparency and community engagement, setting the stage for a prosperous year ahead.