Richardson City Council passed a $432 million city budget with no property tax rate increase for fiscal year 2026-27 at the Sept. 21 meeting.
The budget includes compensation increases for city employees, a new water and wastewater rate plan and added investments in public safety, infrastructure and economic development. The fiscal year begins Oct. 1 and ends Sept. 30, 2027.
The overview
City Manager Don Magner said this is the largest budget the city has ever adopted. The total $432 million operating budget is about $13.7 million more than the budget for fiscal year 2025-26, an increase of roughly 3.3%.
The city budget includes the general fund, which covers the city’s operating expenses and most city services, as well as budgets for water and sewer, solid waste services, golf and hotel/motel tax funds. Additional components include Richardson's debt service, internal service and restricted purpose funds.
What you need to know
Council voted to maintain the current tax rate of $0.54218 per $100 of assessed valuation. This tax rate has been in place since fiscal year 2024-25.
The average homestead taxable value increased by 3.16%, so even though the tax rate remains the same, residents will see an average increase of $70 on their property tax bill.
The budget also includes a new rate plan for water and wastewater charges, which will increase customers’ monthly volume rate and base charge. In FY 2026-27, residents will see a 4% water rate increase and a 12% sewer rate increase.
The city will also implement a meter equivalency plan to adjust the monthly base charge, which will now be determined by each customer’s meter size. Larger, nonresidential meters will see higher base charge increases than smaller residential meters.
Magner said the need for the increases is driven by critical water and wastewater infrastructure needs in the city as well as the rising cost of wholesale water from the North Texas Municipal Water District, which the city buys its water from.
Residents can also expect to see a $1 increase in their monthly drainage fee due to increased expenses for drainage and erosion control projects, as well as an increase of $1 plus tax to the monthly solid waste rate. This increase is driven by compensation increases and rising disposal costs for the city, Magner said.
Looking ahead
Magner stressed the importance of taking a “multiyear approach” to the budget. Although he said Richardson remains financially stable, the larger economic outlook remains uncertain. Inflation is increasing interest rates and construction costs, he said, while state legislative action in 2027 could impact city revenues.
“Richardson’s strong financial position is a result of our disciplined decisions that we've made for many, many years,” Magner said. “Protecting that position must remain our top priority as we develop not just this budget, but budgets in years to come.”
