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Montgomery City Council moved its fiscal year 2026-27 budget process forward Aug. 11, approving a proposed spending plan that increases general fund expenses while keeping the city’s proposed property tax rate at $0.40 per $100 valuation.
The details
The proposed general fund budget totals about $9.45 million in both revenues and expenditures. That represents a 15% increase in revenue and a 22% increase in spending compared with the city’s adopted FY 2025-26 budget.
By the numbers
Some of the largest proposed general fund expenditures include:
Public works is seeing one of the biggest jumps, with capital spending proposed at roughly $866,000. That includes $800,000 for park improvements, up from $200,000 in the current fiscal year.
The budget also proposes using about $643,000 in general fund surplus dollars. During the Aug. 10 budget workshop, city officials said the amount is tied directly to the proposed park improvements and could decrease if the scope or cost of those improvements change.
Zooming in
City officials are working with a proposed tax rate of $0.40 per $100 valuation, the same rate Montgomery has maintained for several years. The city’s no-new-revenue rate is about $0.3921, while the voter-approval rate is about $0.4649 per $100 valuation. Council unanimously approved moving forward with the proposed $0.40 rate Aug. 11.
According to information presented during the workshop, Montgomery’s taxable value increased 6.61%, while its parcel count grew 12.62%. The proposed budget estimates about $2.12 million in current ad valorem tax revenue, an 8% increase over the FY 2025-26 adopted amount.
For comparison, Montgomery’s adopted FY 2025-26 general fund budget included roughly $8.1 million in revenue and $7.6 million in expenditures.
What’s next?
Council’s Aug. 11 approval does not represent final adoption of the budget. The proposed spending plan will be posted for 30 days, with a public hearing scheduled for 6 p.m. Sept. 14.
Council is expected to consider final adoption of the FY 2026-27 budget and tax rate following the hearing, with the new fiscal year beginning Oct. 1.
