Wichita Falls residents may see their utility bills increase in October.
City councilors got a preliminary glimpse at the fiscal year 2026 budget following a council meeting on June 17.
Chief Financial Officer Stephen Calvert suggested a 2% increase in city utility rates.
He recommended reducing wholesale water rates to other cities by 5%.
He said Wichita Falls is currently in the center of the pack of 14 comparable cities on its water and sewer costs, which average $70.50 a month for the typical user. He said Wichita Falls’ sanitation fees, which are included on the bills, are 15% lower than the fees of comparable cities.
Calvert did not suggest a figure for next year’s property tax rate, but said a preliminary figure on property appraisals indicates an increase of 2.75% in local property values, which is modest compared to recent years that saw large increases.
Property values and tax rates are two components that determine what residents will pay in taxes to the city.
Calvert said state-mandated limits on property tax rate hikes mean the city will have “limited room to make any adjustments.”
“I think our intent, through conversations and discussion, is that we would look to keep taxes level or lower,” he said. He mentioned the city is working toward reducing its reliance on property taxes.
His office will get the final property appraisals from the Wichita Appraisal District by July 23.
Calvert also predicted sales tax revenue to the city would be plus or minus 1% compared to the current budget.
“It really flattened out, quite frankly,” he said.
Property taxes and sales taxes make up most of the city’s revenue, which helped generate a $242 million total operating budget in fiscal 2025.
“Although we have some headwinds, the city is in strong financial standing,” Calvert said.
He said salaries and employee benefits make up the biggest share of expenditures, consuming about 73% of the fiscal 2025 budget with about 58% going to the police and fire departments.
Calvert said an Employment Cost Index indicates the city would need to increase salaries by 4.3% to keep pace with comparable cities and implement even larger increases to catch up.
He recommended spending $100,000 on a compensation study by an outside firm.
The preliminary budget again includes $5 million for the Lake Ringgold construction project. Calvert said the city may also need to supplement funds to the MPEC and the Convention and Visitors Bureau because hotel usage and corresponding tax revenue have declined.
More meetings and hearings on the budget are planned before councilors vote on a final budget in September. The city’s fiscal year always begins Oct. 1.
This article originally appeared on Wichita Falls Times Record News: Wichitans may see slight increase on city utility bills
Reporting by Lynn Walker, Wichita Falls Times Record News / Wichita Falls Times Record News
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