What happened: The Midland City Council met Tuesday, Sept. 8, and gave initial approval to the proposed fiscal year 2026-2027 budget and a no-new-revenue property tax rate that is about 10% higher than the current rate. A second public hearing and final considerations are on Sept. 15.

The no-new-revenue rate is calculated to generate roughly the same amount of property tax revenue from properties taxed in both years, with revenue from new construction added on top. Because Midland’s existing taxable property base fell by about $1.5 billion, a higher tax rate would be required to maintain last year’s revenue level.

Council also directed City Manager Tommy Gonzalez to amend the budget to raise starting firefighter salaries to $75,000 and increase driver certification pay. The changes would cost approximately $1.1 million, and staff will return Sept. 15 with proposed spending cuts to offset the additional cost.

Council also approved an agreement bringing $3 million in Midland County funding into a major west-side road project, rezoning for a nearly 500-unit apartment development near Arlington and Deauville, and $12.6 million in federal airport grants.

Midland’s top stories. One quick email. Free, every Friday.
Get Midland Wrapped, our free weekly email for busy Midland residents. Each Friday, we break down the week’s most important local stories — what happened, why it matters, and what to watch next — so you can stay informed without the noise.

Key points:

  • Tax rate and budget: Council gave initial approval to a no-new-revenue property tax rate about 10% higher than the current rate. Despite the higher rate, the city’s finance director said the median homeowner’s city property tax bill is projected to fall by about $67 because taxable values are declining.

Councilman Brian Stubbs moved to amend the proposed budget to raise the fire department’s starting salary to $75,000 and increase driver certification pay by $500 per month after Councilman Jack Ladd noted that Lubbock recently increased its starting firefighter salary to $71,580. The changes would cost the city approximately $1.1 million annually. The starting salary was previously around $63,000.

The amendment directed staff to bring offsetting budget cuts back for consideration on the second reading Sept. 15. Gonzales said the city could cover the additional cost by cutting roughly $500,000 from the IT Department, identifying another $250,000 in cuts, deferring some facilities maintenance and equipment purchases, and temporarily using salary savings from vacant fire department positions.

City spending on police, fire, and EMS has grown 88% over the last 10 years. Emergency response is Midland’s largest non-enterprise fund budget item, and the city’s total property tax collections do not generate enough revenue to cover emergency response spending alone.

  • Sinclair Avenue / County partnership: Council approved an interlocal agreement with Midland County to extend Sinclair Avenue west from State Highway 158 to County Road 1250 and improve CR 1250 from Sinclair to SH 191, including intersection improvements. The county will contribute $3 million because CR 1250 is county-maintained right-of-way.

The project follows the council’s Aug. 11 approval to use $7.5 million from certificates of obligation, new debt issued in 2025, to extend Sinclair west from Kirkland Drive to CR 1250. City staff said the new roadway will support residential and commercial development in District 4 and Tax Increment Reinvestment Zone 3.

Council also approved renaming the portion of Sinclair Avenue west of Mosswood Drive to Diane and Jose Cuevas Boulevard. The city said the affected segment has no addresses or businesses, meaning no residents or property owners will have to change their address. Jose Cuevas is a longtime Midland business owner who served on the city council for more than a decade.

  • Deauville/Arlington apartments: Council approved the rezoning of 20 acres at Arlington Road and Deauville Boulevard for a roughly 468-unit apartment project across three-story buildings in two phases. The developer agreed to install an eight-foot masonry wall along the property line with the adjacent neighborhood and orient the apartment buildings away from neighboring backyards.

The developer also voluntarily agreed to build the full width of Deauville and construct a roundabout at the Deauville and Arlington intersection before the project proceeds. A traffic study found that the proposed roundabout would reduce average intersection delays by three to four seconds.

  • $12.6M in FAA grants: Council approved receiving three Federal Aviation Administration (FAA) grants totaling approximately $12.6 million. The grants, funded 90% federally with a 10% match from airport funds, cover master plan updates for Midland International Airport and Midland Airpark, a runway rehabilitation project, and installation of vehicle-movement-area transmitters, which track vehicles on runways.
  • City wayfinding signs: Council approved a $719,000 wayfinding project that will install signs at 49 locations along the I-20 corridor and in the downtown and historic district. The project is funded with $418,000 in city hotel and motel tax revenue, $238,000 from Visit Midland and $62,805 from the Downtown Midland Management District, not property tax revenue.
  • Mobile command substation: Council authorized nearly $120,000 for a new mobile command substation for the police department. Staff said the department’s previous unit is unusable and cited the June 12 shooting response as an example of an incident where officers needed a centralized command location.
  • Utility extension program: Council approved up to $2 million for the city’s utility extension program, which handles small water and sewer projects that are not incorporated into larger capital projects. Staff said the program also gives the city flexibility to respond quickly to urgent needs such as a water main problem near a school or hospital without waiting months for a separate design process.