Reporting By Gary Norman / Mineral Wells Area News
The Mineral Wells City Council held a Fiscal Year 2026 Budget Workshop followed by its regular meeting on August 19, 2025. The session, lasting about four hours, was chaired by Mayor Pro Tem Beth Watson in the absence of Mayor Regan Johnson.
Budget Workshop Recap
“Back to Basics” Approach
City Manager Jason Weeks described the proposed FY 2026 budget as “getting back to basics,” prioritizing customer service, communication, transparency, and the core values of public safety, infrastructure, IT, and quality of life.
The overall proposed budget projects $54.97 million in revenue against $59.13 million in expenses. Weeks noted the plan reflects conservative revenue estimates to avoid past overinflation and recurring costs.
“All of our revenues are budgeted conservatively,” Weeks said. “We are not going to overinflate the revenues like it was done in previous years.”
He also warned that financial planning must be corrected for long-term stability:
“Right now, our goal is to become a little bit better financially and to be financially solvent, not that we are insolvent, but if you look out for the future years we are headed that direction. We’ve got to turn the ship.”
General Fund
Covers administration, police, fire, parks, library, streets, and inspections.
Revenues: $19.08 million
Expenses: $20.78 million
Fund Balance: Decline from $7.2 million to $5.5 million(Decrease of $1.7 million)
Key costs include:
- Personnel – $13.37 million (64%)
- Non-payroll supplements – $1.83 million
- Street Maintenance – $800,000
- Utilities – $932,158
- Capital Lease/Purchases- $410,132
- Insurance – $263,434
- Third–party Inspections $235,000
- County Tax Appraisals/Collections – $221,987
- Legal Fees – $132,500
- EMS Collection Fees – $100,362
Weeks said new policies will increase accountability, including a vacancy review board, monthly departmental reporting, and better financial monitoring with new software.
Property Tax Rate
Council adopted the Voter Approval Rate of $0.5717881 per $100 valuation, slightly lower than the current rate. For an average $178,838 home, the tax change equals about $21.53 more per year ($1.79 per month).
Council declined to adopt a higher rate that could have added $527,000 for street repairs, citing anticipated water and sewer rate increases.
Council Member Mike Rankin said the decision was “an effort to help the citizens survive.”
Beth Watson added the higher option “just [wasn’t] going to pave that much,” referring to street repairs, therefore making the lower rate more practical.
Water and Sewer Fund
Revenues: $30.91 million
Expenses: $28.51 million
Cash & Investments: Increase from $940,507 to $4.54 million
Major costs include:
- Water purchases – $14.06 million
- Personnel – $4.97 million
- Utilities – $817,961
- Chemicals – $799,400
- Debt service – $427,053
- Credit card fees – $473,252
Weeks said water and sewer rate hikes are needed to meet state-required reserves. Deficits totaled $4.4 million in FY 2024 and are projected at $4.95 million in FY 2025.
For FY 2026, an example household using 5,000 gallons of water and 4,800 gallons of wastewater would see monthly bills rise from $189.78 to $246.34, a 29.8% increase.
Weeks emphasized the consultant’s proposal is a “worst-case scenario” and NewGen Strategies will present alternatives on Sept. 2.
Other Funds
Other city funds, including Drainage, Hotel/Motel, Debt Service, Insurance, Library Trust, and CIP projects, total:
- Beginning Balance: $13.39 million
- Revenue: $5.14 million
- Expenses: $9.96 million
- Ending Balance: $8.56 million
Key items include $800,000 returned from the Insurance Fund to the General Fund and $265,000 from the Library Fund for a new park project.
Next Steps
Sept. 2, 2025: Utility rate presentation and continued budget discussion
Sept. 10, 2025: Public hearing on FY 2026 budget and tax rate, followed by adoption of:
- Chamber of Commerce Tourism budget
- Economic Development Corporation budget
- TIRZ No. 2 budget
- Palo Pinto County Municipal Water District No. 1 budget
Council Member Kyle Kelly urged the city to explore options for lowering water rates and improving staff pay.
Other Council Highlights
- MH379 West Project: Approved $500,517.87 progress payment to Peachtree Construction.
- EMS Services: Approved interlocal agreement with Mineral Wells ISD for football games.
- Donation: Accepted 10 Dell laptops from Jason “Red” Knight.
- Police Incentives: Approved grant application to award $6,500 to each officer with a Master Peace Officer Certification.
- Jail Services: Approved agreement with Parker County.
- Purchasing Agreements: Approved cooperative agreements with Alliance and Fort Worth.
- Legal & IT Services: Approved payments to Messer Fort ($150,000 FY 2025; $255,000 FY 2026) and McLane Intelligent Solutions ($60,000 FY 2025).
- Waste Services: Approved payments to Frontier Waste Solutions ($255,000 FY 2025; $845,000 FY 2026).
- Audit Services: Approved $57,440 contract with Patillo, Brown & Hill LLP.
- Executive Session: Amended city manager contract requiring 5 council votes for dismissal without cause.
- Water District & TIRZ: Presented FY 2026 budgets and CIP.
- School Resource Officer Program: Approved agreement with Mineral Wells ISD.
Supporting material for the Budget Workshop can be found at:
Special Meeting • • CivicClerk
Supporting information for the City Council Agenda can be found at:
City Council Meeting • • CivicClerk