Shenandoah City Council discussed updates to the fiscal year 2026-27 budget at its Aug. 5 budget workshop meeting, including a potential increase to its FY 2025-26 tax rate of $0.1821 per $100 valuation.
The no-new-revenue new tax rate for FY 2026-27, which would provide the same revenue to the city as last year, is $0.1849 per $100 valuation, Finance Director Lisa Wasner said.
According to city documents, the voter approval tax rate is $0.1919 per $100 valuation, with the city’s total certified taxable property value currently at $1.7 billion.
After discussion, the council voted on a motion to propose a rate of $0.1911 per $100 valuation for FY 2026-27, an increase of $0.009 per $100 valuation.
According to budget documents, the total proposed budget for FY 2026-27 is $21.52 million, which is 15.33% more than the FY 2025-26 budget.
Budget explained
In order to bring in the same or very close to the same revenue as last year, the city would have to go with the $0.1849 rate, Wasner explained. The no-new-revenue option for the tax rate would represent less than a $0.0028 increase from $0.1821, or a 1.5% increase.
The general fund proposed budget shows the following for FY 2026-27 proposed revenues:
- Most city services are paid from general fund.
- The main source of revenue is sales tax at 71%.
Documents also show the following for FY 2026-27 proposed expenses:
- The largest expenditure is public safety at 60% of the total budget.
- The third largest expenditure is public works, at 11%.
- Residential trash service is approximately 3% of the general fund.
Sorting out the details
If the no-new-revenue rate was adopted, it would increase the tax bill for a home valued at $437,000—the median appraised valued in the city—by about $36, or 4.7%. On the other hand, under the $0.1919 tax rate, it would be a $0.0098 increase from the previous year, or 5.4% increase, which would be an additional $66 or 8.9% increase to the tax bill for the same home. Wasner said she did not recommend that option.
A public hearing must happen before the adoption of the tax rate if it is higher than the no-new-revenue rate, according to state law.
Before you go
The adoption of the budget will take place later this month. The tax rate has to be approved by Sept. 15 and will be adopted by the City Council meeting on Sept. 26.
