The city is proposing to keep the same tax rate for Fiscal Year 2025-26 as the previous two years, based on a 19.85% increase in taxable property value.
The Princeton City Council will take formal action on the tax rate and municipal budget following a public hearing scheduled for Sept. 8. A budget workshop is scheduled before that at the Monday, Aug. 25, meeting.
Chief Financial Officer Kelly Wilson said at the Monday, Aug. 11, council meeting that city staff recommended a proposed rate of $0.4402 per $100 in valuation.
State law requires local governments to consider two tax rates for maintenance and operations (M&O). The no-new-revenue rate would produce the same amount of tax revenue if applied to the same properties in both years. The voter-approval M&O rate is the highest tax rate the city can set without holding an election to seek voter approval of the rate.
Wilson said Princeton’s no-new-revenue M&O Rate is $0.2457 and the voter-approval M&O Rate is $0.2543. The debt service rate, known as interest and sinking (I&S) is $0.1859, she said.
Council certified the 2025 appraisal roll at $4.524 billion, including appraisals under protest, and set the recommended tax rate of $0.4402 to be considered at the public hearing.
The proposed city budget projects total revenue across all city funds of $114.9 million – excluding transfers in — with total expenditures of $152.7 million, excluding transfers out. The expenditures include $70.4 million budgeted for capital projects.
The budget will raise more revenue from property taxes than last year’s budget by $2.9 million, 17.90% more than last year’s budget.
In other business, Director of Public Works reported to council that the utility billing department had been processing accounts to determine if they are eligible to receive bill credits or reimbursements on because the city never implemented winter quarter averaging of sewer rates after the method was adopted by council.
Mapp said 10,543 accounts were being reviewed and assessed for eligibility and that the billing department was on target to meet a Nov. 11 deadline for completion of the reviews.
He introduced Billing Revenue Manager William Rosales, who said 7,000 accounts had been reviewed and about 1,600 had not qualified for a refund or actually owed money to the city. However, he said the city would not back bill to collect the difference.
Also on the agenda, Allison Cook, assistant city manager, updated council on plans to renovate Lois Nelson Public Library with $1 million in bond money approved in November 2023.
She said the library is 4,067 square feet, has more than 10,000 card holders and hosts more than 32 programs a year. However, she said that with the space constriction because of its location, the $1 million in bond money approved in 2023 would only be able to do renovations, not an expansion.
“The reality is, we need a lot more money to make it bigger,” Cook said. “So, the $1 million will get you a reskinned renovation. If you want to be bigger, you’re going to have to go get another bond.”
Cook said a joint meeting would be held to determine a final plan.
“The goal is to work with staff and the library board, staff, city staff, myself, our contractor representative, the design firm … we’d like to bring everybody in before we come to council, so we can let you all know the voices that were heard and that participated in the final concept,” she said.
On another bond project, council asked Chase Bryant, director of parks and recreation, for more information about how bond money could be spent for JJ “Book” Wilson Memorial Park. Bryant presented three options to align with funding levels.
Option 1 would be fully funded by donations and require no supplemental funding but would result in a 50% reduction in the size of the skatepark and play area. The total cost would be $5.1 million. Option 2 would require $800,000 in supplemental funding and increase the playground features. Option three would cost $6.5 million and provide all features originally envisioned.
Councilmembers varied on which plan would be the best use of city money and asked Bryant to come back with more specific plans.
What was supposed to be a brief public hearing was held on the request for a specific use permit (SUP) for a pet shop to be built on the northwest corner of Princeton Drive and North Beauchamp Boulevard. However, nearby property owners came forward to protest the potential drainage from the project and the hearing then focused on the whole 66-acre development.
Director of Development Services Craig Fisher said the facility would have to comply with all city ordinances and Assistant City Attorney Grant Lowry confirmed the issue at hand was only whether to allow a pet shop on the property.
The request was approved 5-2 with Councilmembers Cristina Todd and Terrance Johnson voting “no.”
On the consent agenda, councilmembers approved without discussion a final plat approval for Children’s Lighthouse on the northeast corner of South Beauchamp Boulevard and Corporate Drive.
At the start of the meeting, councilmembers recognized Municipal Judge Dana Huffman for receiving the Nancy Garms Memorial Award from the State Bar of Texas and for being named Judge of the Year by the Texas Municipal Courts Association.
The next regular meeting of the Princeton City Council is scheduled for Monday, Aug. 25, which will include a budget workshop.