Temple City Council Approves Tax Rate Increase to $0.6975 for Fiscal Year 2026

The Temple City Council convened on August 21, 2025, to discuss several key financial matters that will directly impact the community. Among the most significant decisions was the approval of a municipal bond ordinance, which will free up over $5 million for local projects.

During the meeting, the council approved a bond item that allows for the release of reserve funds previously set aside for debt service. This decision comes after the council authorized a bond refunding earlier this year, which replaced the reserve requirement with a surety insurance policy. The funds released from this reserve can now be allocated to projects within the city's Reinvestment Zone Number 1, enhancing local development efforts.

In addition to the bond discussion, the council addressed the upcoming fiscal year 2026 budget, which includes a proposed tax rate of $0.6975 per $100 valuation. This rate is composed of $0.373 for maintenance and operations and $0.3245 for debt service. The proposed rate reflects a slight increase from the previous year’s rate of $0.6265, driven by rising costs and the need to maintain essential city services.

City officials emphasized the importance of this tax rate in supporting public safety and infrastructure, acknowledging the challenges posed by inflation and lower sales tax revenues. The council is committed to balancing the budget while ensuring that critical services remain funded. The final public hearing for the budget and tax rate adoption is scheduled for August 28, 2025.

Community members voiced concerns during the public hearing, highlighting the burden of rising taxes on residents, particularly seniors and those on fixed incomes. Some urged the council to prioritize essential services over discretionary spending. The council acknowledged these concerns and reiterated their commitment to responsible fiscal management.

As Temple continues to grow, the decisions made during this meeting will play a crucial role in shaping the city’s financial landscape and ensuring that it meets the needs of its residents. The council's focus on transparency and community engagement will be vital as they navigate these financial challenges in the coming year.