By Gary Norman | Mineral Wells Area News
The Mineral Wells City Council met Tuesday, September 2, with all members present, as City Manager Jason Weeks presented updated Fiscal Year 2026 budget figures.
His latest projections showed significant improvement compared to earlier estimates but still rely on staff reductions and proposed utility rate increases to stabilize the city’s finances.
Weeks said the revised proposal reflects his three-pillar approach of improving customer service, communication, and transparency, while focusing on public safety, infrastructure, information technology, quality of life, and financial stability.
Property Tax Rate
Council reaffirmed its adoption of the voter-approval tax rate of $0.5717881 per $100 valuation, slightly below the current rate of $0.57329448. For a home valued at the city average of $178,838, the change means an increase of $21.53 per year, or about $1.79 per month.
Improved Budget Picture
Weeks reported stronger financial projections than he presented in early August. The updated plan shows $61.17 million in revenue against $62.02 million in expenses, leaving a net shortfall of $854,852 — a marked improvement from the $4.17 million deficit outlined at the last meeting.
For the General Fund, projected revenues of $19.06 million against $20.45 million in expenses leave an ending balance of $5.8 million, compared to the $5.5 million balance Weeks projected previously.
The improved outlook stems partly from staff reductions: eliminating the Library Manager, Community Development Director, and Streets Superintendent positions, along with freezing four street department positions. To offset these cuts:
- The city will contract with Mineral Wells ISD to manage library services.
- The parks and library operations will be consolidated into a new Community Services Department.
- The Economic Development Corporation’s executive director will receive a salary adjustment to reflect added duties.
City Staff will not receive a raise or cost of living adjustment this year, however Weeks said he may consider one-time or ongoing pay adjustments for city employees if the financial picture improves later this year. He also noted that outsourcing mowing and brush-clearing could be explored using savings from the frozen street positions.
Water and Sewer Fund
Weeks also provided updated budget projections for the city’s utility fund. Fiscal Year 2025 is expected to close with a $1.75 million loss and only negative 80 days of operating cash, well below the state-required 90-day reserve.
For FY 2026, the proposed plan projects $37.35 million in revenue against $31.7 million in expenses, producing a $5.6 million net gain and an ending balance of $7.77 million. Still, the fund would close the year with just 13 days of operating cash on hand, short of requirements.
Weeks outlined draft proposed water and sewer rate increases to begin addressing the gap. A household using 5,000 gallons of water and 4,800 gallons of wastewater per month would see its bill rise from $189.78 to $236.23 — a $46.45, or 24.5%, increase. That figure is lower than the 29.8% hike discussed in August.
It’s notable to mention Council did not raise water rates for 2025, despite their original plan to increase rates three years in a row. The substantial water rate hike began in 2024 to help offset the cost of constructing Turkey Peak reservoir.
The budget proposal also anticipates returning $8 million that was transferred last year to Palo Pinto County Water District No. 1 to help cash-fund a reverse osmosis treatment system. That money would be reinvested to bolster reserves and support debt payments on the city’s $70 million Texas Water Development Board loan for Hilltop Water Treatment Plant upgrades.
Financial Reforms
Weeks again stressed the need for structural changes after past budgets overestimated revenues and left the city’s fund balances depleted. His strategy includes tighter purchasing policies, monthly departmental variance reports, efficiency audits, stronger fee collections, and targeted program cuts to focus resources on core services.
What’s Next
Council will hold a public hearing September 16 on the proposed FY 2026 budget and tax rate, with adoption expected the same night. The meeting will also include final action on the budgets for the Chamber of Commerce, Economic Development Corporation, Tax Increment Reinvestment Zone No. 2, and the Palo Pinto County Municipal Water District No. 1.
Other Council Action
- Approved submission of a $3,500 Brazos Foundation grant for fire/rescue equipment.
- Approved $215,000 payment to the Palo Pinto County Appraisal District for 2025 tax billing and collection.
- Approved purchase of $500,000 in property, casualty, and cybersecurity insurance from the Texas Municipal League Intergovernmental Risk Pool.
- Approved $96,000 payment to Wallace Controls and Electric for generator installation at the Hilltop Water Treatment Plant.
- Approved $80,000 payment to Tyler Technologies for enterprise software.
- Approved a $2.39 million contract with Branded CS for construction management services on the TIRZ No. 2 Parks Plaza Project.
- Adopted updated travel policies for city employees.
- Approved a vendor services agreement with Cornerstone Staffing worth up to $500,000 per year.
- Approved a two-year, $14,400 annual contract with Mineral Wells ISD for library services.
- Deferred nominations to the Palo Pinto Appraisal District Board of Directors to the October 6 meeting.
Supporting documents and video of the meeting are available on the city’s CivicClerk portal and YouTube channel.