Mineral Wells Area News

Reporting & Photos By Gary Norman | Mineral Wells Area News

The Mineral Wells City Council on Tuesday, Sept. 16, 2025, adopted the city’s Fiscal Year 2026 budget following a public hearing where no residents chose to speak. Mayor Regan Johnson presided, with all members present except Council Member Beth Watson.

Budget adoption

City Manager Jason Weeks presented the updated budget plan, reiterating his three-pillared approach of excellent customer service, stronger communication, and greater transparency. His stated core values remain public safety, infrastructure, information technology, quality of life, and financial stability.

Weeks noted that because the council voted to delay the $100 million loan from the Texas Water Development Board for the Turkey Peak Reservoir project, no water-rate increase tied to that funding is included in the FY 2026 budget. A 5.1 percent sewer-rate increase is planned.

Insurance premiums will rise 10%, while Texas Municipal Retirement System rates dropped slightly from 8.56% to 8.52%. The city will add eight positions, including an IT support specialist, three firefighter/paramedics funded through a grant, an assistant public works director, a senior equipment operator, and two water operators. Some vacancies remain frozen.

The budget includes no salary increases, though Weeks said the matter will be revisited in December or January to consider one-time payments or permanent adjustments.

The property tax rate remains essentially unchanged under the voter-approved rate of $0.5717881 per $100 valuation, slightly lower than the current $0.57329448. A home with the average value of $178,838 will see a $21.53 annual increase, or about $1.79 a month.

Citywide, the proposal shows revenues of $55.5 million against $56.0 million in expenses, a net shortfall of $530,916.

In the General Fund, revenues are projected at $18.9 million and expenses at $20.4 million, leaving an ending balance of $5.66 million — a $1.54 million reduction. Weeks said the fund balance was hit by overstated revenues in FY 2024, reducing the expected ending balance by $2.2 million, and recurring FY 2025 expenses adopted on faulty projections, together impacting about $5 million.

Key General Fund expenses include:

• Personnel: $13.0 million (63.7%)
• Non-payroll supplementals (including park upgrades, dump and crew trucks): $1.83 million
• Street maintenance: $800,000
• Capital lease/purchase payments: $410,132
• Utilities: $932,158
• Third-party inspections: $235,000
• Legal fees: $132,500
• TML insurance: $221,987
• EMS collection fees: $100,362

Projections show the General Fund balance falling from $5.6 million in FY 2026 to $586,000 by FY 2030. “We have five years to turn this ship,” Weeks said.

His long-term plan includes stricter financial reporting by departments, cost-saving audits, outsourcing reviews, stronger fee collections, new purchasing policies, and reductions to programs or service levels if necessary.

Water and sewer fund

For FY 2026, the Water/Sewer Fund starts with $940,507 in cash and investments, with $31.7 million in revenues and $25.6 million in expenses, ending with $8.2 million. Weeks said $8 million previously transferred to the Palo Pinto County Municipal Water District No. 1 for a reverse-osmosis treatment process will be returned to build the utility’s debt reserve, with the city issuing debt to fund the project.

Most customers will not see rate hikes. However, base rates will increase slightly for fewer than 200 customers with one-inch or larger meters beginning Nov. 1, 2025. Sewer charges will rise from $15 to $15.78 per month, and volumetric charges based on winter averages will climb from $8.02 to $8.43.

Major Water/Sewer expenses include:

• Personnel: $4.97 million (19.4%)
• Non-payroll supplementals (tank repair, new water crew, trucks, utility lines): $2.08 million
• Water purchases from the district: $8.13 million (31.7%)
• Debt payments: $3.64 million
• Depreciation: $1.2 million
• Chemical supplies: $799,400
• Reimbursements and franchise fees: $1.5 million combined

A consultant projected an 8.6% water-rate increase in FY 2028 and sewer-rate hikes of 5.1% and 2.3% in FY 2026 and FY 2027.

The council unanimously adopted the FY 2026 budget, with Watson absent.

Other actions

• The Oct. 7 council meeting was rescheduled to Monday, Oct. 6, to allow participation in National Night Out.
• An agreement with TxDOT will provide up to $100,000 in reimbursements for airport improvements under the Routine Airport Maintenance Program grant.
• A public hearing and ordinance set the FY 2026 property-tax rate.
• The commercial/industrial sewer surcharge was raised for the first time in more than 30 years. Finance Director Aaron Bovos said the change ensures heavy users pay their share, boosting monthly revenue from $12,000 to $46,000 and impacting about 214 ratepayers. “The goal of the fee is to ensure that higher strength users pay their fair share rather than placing the burden on residential rate payers or the system as a whole,” he said.
• The city formally requested the return of $8 million from the water district to boost utility reserves.
• Budgets were approved for the Economic Development Corporation, TIRZ No. 2, the water district, and the Chamber of Commerce tourism services.
• A new hotel-occupancy tax agreement with the Chamber places stricter controls on funds and gives city representatives roles in tourism oversight.
• Final plats and replats were approved for two residential developments, one for 46 homes by Rustin Kinman and another for three homes by Daniel Contreas.

The full agenda and documents are available through City CivicClerk. A video of the meeting can be found at this link.