Mineral Wells Area News

By Mayor Regan Wallace

We are closing in on the Fiscal Year 2025–26 Annual City Budget at Tuesday night’s Sept. 16 council meeting. In a home rule city like Mineral Wells, the annual budget is one of the most important responsibilities of local government.

The process begins with city staff gathering financial data, projecting revenues, and addressing community needs. The city manager then proposes a budget that outlines how funds will be spent for essential services like police, fire, water, sewer, and the library. A balanced budget is crucial because it ensures your tax dollars are spent responsibly, priorities are funded, and the city can plan for both short- and long-term needs. The budget is also a legal document that authorizes spending and guides operations.

Revenues and Expenses

Just like operating a household, the city has revenues and expenses. The proposed detailed budget runs 382 pages, but here’s a brief summary:

Sales tax: The sales tax rate is 8.25%. Of that, the state receives 6.25%, the county .5%, and the city 1.5%. The city’s portion is divided into three parts — 1% to the general fund, .375% as a property tax reduction, and .125% to the Economic Development Corporation (the 4B fund). Projected sales tax revenue for 2025–26 is $5,834,933. Property tax: Projected property tax revenue is $7,230,329. The average home value in Mineral Wells is now $178,838. The current property tax rate is $0.57329448; the proposed rate is slightly lower at $0.57178810. Because values have increased, the average home will see an estimated tax increase of $21.53. Total revenues: General fund revenues for 2025–26 are projected at $19,079,972.

Other revenue streams include mixed beverage tax, franchise fees, licenses and permits, charges, and fines.

Other City Funds

Several funds fall under city management but are not part of the general fund. These include Water/Sewer, Drainage, Hotel/Motel tax, Economic Development, and the Airport. Each operates with its own revenue sources.

Additional budgets on the Sept. 16 agenda include the Tax Increment Reinvestment Zone #2, Tourism, the Economic Development Corporation, and the Water District.

Key Budget Items

Major items in the proposed general fund budget include:

• Personnel costs: 64% of total expenditures. These are impacted by a 10% increase in medical premiums.
• Services and operations:
• Sanitation services at the Convenience Center — $200,000
• Legal fees — $132,500 TML Insurance (property, liability, cyber, flood) — $263,434
• Telephone and utilities — $932,158
• Tax appraisals and collections — $221,987

The total market value of property within the city limits is $1,985,675,100.

Breaking It Down

Approximately half of the city’s annual budget goes toward Police, Fire, and EMS services. Another 14% supports streets, while Parks & Recreation accounts for 8%. The remainder covers city staff, the library, sanitation, and other services.

Mineral Wells residents should remember that property tax bills cover five taxing entities: City, County, Mineral Wells ISD, the Emergency Services District, and Palo Pinto General Hospital. Of those, the city’s portion — if the proposed budget passes — will be $0.57 per $100 of valuation.

Final Notes

City staff have worked diligently to balance revenues with community needs and employee costs. The proposed budget does not include staff salary increases.

If you’ve made it through the numbers, I hope you aren’t too bored — but it is your money, and you need to know where it goes. Full budgets, detailed information, and year-to-year comparisons are available on the city website. The city also recently adopted updated procurement and travel policies to strengthen transparency.

As always, feel free to contact your ward representative, either at-large council member, or myself if you have specific questions or need clarification.

Stay crazy for Mineral Wells!

Mayor Regan Wallace

mayor@mineralwellstx.gov