What happened: The City of Midland proposed a $460.9 million budget for fiscal year 2025–26. Council unanimously approved the budget and accompanying tax rate on first reading on Sept. 9. Both items return for second reading on Sept. 16.

Why it matters: The plan lowers the property tax rate slightly, but rising property values mean the average homeowner will see about a 0.75% increase in their bill.

Go deeper: Midland remains financially strong with nearly $98 million in reserves and top credit ratings. However, public safety costs are growing almost three times faster than property tax revenue, a trend city leaders say is unsustainable without new funding strategies.

Key points:

  • Taxes and revenue: In total, the city expects to collect $460.9 million from fees, taxes, and other revenue. That’s up $6.1 million, or 1.4%, from last year. Property taxes will generate $79.8 million, about $3.3 million more than last year. Of that total, $65.2 million will fund day-to-day services such as police, fire, parks, and streets, while $14.6 million will cover debt payments. The city projects sales tax will bring in $65.6 million, up $0.6 million from last year.
  • Public safety: Combined spending on police and fire will total $95.4 million, up $6.7 million from last year. That makes up more than half of the general fund. Police spending will reach $45.8 million, up $4 million from last year, as the department continues to close its staffing gap. Vacancies have dropped from 45 to 17, and city leaders expect to fill the remaining positions within 12 to 18 months.

Fire spending will rise to $49.6 million, up $2.7 million from last year. The budget includes firefighter raises, shortly after the city addressed a $121 million pension shortfall for the firefighters. The fund was underfunded for years after the locally elected fire pension board declined state recommendations. To help close the gap, the city made a $54.4 million cash infusion using oil and gas revenue that previously funded quality-of-life projects across the city.

  • Infrastructure: Citywide infrastructure totals $178.6 million, about 39% of all-funds spending, or a $7.3 million decrease from last year. Water and sewer will be $98.4 million, up $5.2 million from last year. The plan includes $6 million in capital work to replace 50 manholes, continue annual 4-inch main replacements, and extend utilities in growth areas. Roads will total $38 million, including $28.8 million for construction projects and $9.2 million for street maintenance. Drainage totals $2.6 million, down $1.4 million from last year.
  • Quality of life: Parks and recreation will total $12.3 million, up $1.1 million from last year. Golf course operations will total $4.9 million, up $0.7 million from last year. Airport spending rises to $27.8 million, up $12.7 million from last year.
  • Workforce: City staff will total 1,284, up 18 employees from last year. New positions include a civil engineer, an IT project manager, sanitation drivers, a parks maintenance specialist, and an assistant city attorney.