City proposed budget would raise average tax bill by 0.75%
What to watch: The Midland City Council will meet Sept. 9 at 10 a.m. Key items include the city’s FY26 budget and tax rate, Beal Park upgrades, Briarwood Avenue construction, airport terminal expansion, restrictions on a downtown bar, and updated water, sewer, and sanitation fees.
Key points:
- Budget and tax rate: Because of rising property value and new construction, the city expects to collect $3.7 million more in property tax revenue, including $1.1 million from new property. The proposed tax rate is slightly lower than last year’s, but higher home values mean the median homeowner would pay about $8 more if the rate is approved. This will be the first of two budget and tax rate hearings.
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Hot Shots: Council will again debate security conditions for the downtown bar, Hot Shots. In April, council approved its alcohol permit, but required the bar to hire two armed peace officers on weekends, even though police data showed the bar wasn’t a top offender. After a complaint from BTA Oil Producers, council imposed stricter terms than those given to neighboring bars.
In June, council replaced the officer requirement with two Level II security guards, matching nearby Double Bar. At Hot Shots’ 60-day review, city staff reported incidents averaged 3.7 per month, slightly up from 3.3 the year before. Staff recommended expanding security to Tuesday-Saturday until 2:30 a.m.
Councilman Jack Ladd objected, saying staff’s recommendation was based on anecdotal evidence, lacked data, and singled out one bar. Council has asked staff for a citywide policy on bar security, but has not yet received one.
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Airport terminal expansion: A $38.6 million construction contract is up for approval as part of a $47 million terminal upgrade. Planned improvements include up to six TSA lanes, new restrooms, a pet relief area, an escalator, elevator fixes, and HVAC and lighting upgrades. Federal grants, passenger fees, and airport operating funds will fund the project, not local property or sales taxes.
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Beal Park: Council will vote on increasing the design contract to $2.7 million. Beal Park’s Phase 2 recently gained $7.5 million in private donations to add a splash pad, restrooms, amphitheater, and playground. The city expects completion in late 2027.
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Briarwood Avenue: A $10.8 million construction contract would widen Briarwood Avenue and add a traffic signal at Avalon Drive. The city will cover part of the cost with impact fees and leftover 2017 Road Bond funds. Midland County will chip in $2 million for the section outside city limits.
- City user fees: Council will consider raising some city service fees, including a 2.5% hike in water and sewer rates, higher sanitation fees, and a $1 increase to the litter abatement fee. Staff says these increases reflect higher service costs.