What happened: The Midland City Council met Sept. 16 for the second and final hearing on the 2025–26 city budget and tax rate. Council unanimously approved the $460.9 million budget and accompanying tax rate.

Key points:

  • Budget and tax rate: Council adopted a $460.9 million budget, including a $187.5 million general fund. The general fund covers core services for all residents, like police, fire, parks, road construction, and maintenance. Other parts of the budget rely on user fees such as water, sewer, sanitation, and airport services.

Public safety makes up 56% of general fund spending, with infrastructure at 14%. The tax rate dropped slightly, but rising property values mean the average homeowner will pay about 0.75% more, roughly $8 annually. Council stressed that Midland’s rate remains far lower than peer cities like Odessa and Lubbock.

  • Firefighter pay: Council adjusted the firefighter pay scale by eliminating the two lowest pay steps, allowing new hires to advance more quickly. Firefighters will now reach the previous top pay of $114,000 in four years, rather than taking longer. Council called this an incremental step toward regional pay competitiveness, noting that they will consider more adjustments in future years.

    These changes follow the city’s recent effort to resolve a $121 million firefighter pension shortfall. For years, the fund was underfunded after the locally elected fire pension board declined state recommendations. To help close the gap, the city contributed $54.4 million from oil and gas revenue that previously funded quality-of-life projects.

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Officials cautioned that police and fire costs are rising nearly three times faster than property tax revenues, requiring greater reliance on sales tax.

  • Infrastructure and services: The budget invests $98 million in water system improvements, $39.8 million in roads and drainage, and $22 million in parks, with more than $20 million coming from public-private partnerships.