Mineral Wells Area News

Reporting By Gary Norman & Amy Meyer | Mineral Wells Area News

MINERAL WELLS, Texas — Mineral Wells residents are facing a higher city property tax rate in the coming fiscal year, but city officials say much of the additional revenue will be used to strengthen public safety compensation, increase employee retirement benefits and maintain the city’s long-term financial stability.

The Mineral Wells City Council held a public hearing Tuesday on the proposed fiscal year 2026-27 budget and continued discussion of a proposed property tax rate of $0.7007075 per $100 of taxable value. The council is scheduled to consider final adoption of both the budget and tax rate during a special meeting Aug. 24.

City Manager Jason Weeks used Tuesday’s budget presentation to detail where city dollars are going and why administrators believe the higher tax rate is necessary.

The proposed general fund budget is approximately $19.9 million, slightly less than the city’s projected general fund expenditures for the current fiscal year.

Among the most significant investments are raising the minimum wage for full-time city employees to $20 per hour, providing employees with at least a 4% pay increase, implementing a temporary new pay structure for police and firefighters and increasing employee participation in the Texas Municipal Retirement System from 5% to 6%.

The city will continue matching employee TMRS contributions at a two-to-one rate.

The proposed budget includes approximately $657,000 for salary and market adjustments, with $449,475, or about 68%, attributable to public safety employees.

Approximately $162,000 of the roughly $251,000 increase associated with TMRS in the general fund is also attributable to police and fire.

When salary adjustments, health insurance and TMRS increases are combined, Weeks said approximately $700,000 of roughly $1.1 million in general fund increases is associated with public safety.

“A large portion of the reason you’re having a tax increase is to help fund public safety,” Weeks said.

The city has also budgeted $75,000 for a classification and compensation study during the upcoming fiscal year to determine whether its employee pay structure remains competitive.

Weeks said personnel and benefits account for approximately $13.3 million, or 67%, of general fund spending, leaving relatively little opportunity to make major budget reductions without affecting staffing.

“If you still want to continue paying for the services that we have as well as providing the increases in salaries and TMRS benefits and those type things, you have to cut something,” Weeks said. “And that means you’re going to have to cut people.”

City says financial outlook has improved

Weeks also pointed to the city’s projected fund balances as evidence that changes in budgeting and financial management are improving Mineral Wells’ long-term position.

The city is proposing a general fund balance of approximately 28% of operating expenditures, above its 25% policy requirement.

Weeks showed council members projections comparing the city’s financial outlook under different tax-rate scenarios. Previous projections showed excess general fund balances eventually falling into negative territory if spending and revenues continued along their former trajectory.

Under projections using the proposed de minimis tax rate, the city’s excess fund balance remains positive in future years.

“What I call it, we turned the ship,” Weeks said. “So we were going negative, now we’re going positive, and it’s a lot better future.”

Weeks said maintaining stronger reserves will become particularly important as the city prepares for future capital projects and debt issuance. Credit rating agencies consider financial stability and fund balances when evaluating municipalities, and stronger ratings can translate into lower borrowing costs.

The improved projections follow a series of changes to the city’s financial management practices.

Weeks said city department heads now receive monthly information showing their expenditures and have access to financial records allowing them to monitor spending throughout the year. The city has also implemented approximately 15 financial policies covering areas including budgeting, grants, purchasing and requests for proposals.

Department heads are now more involved in developing and managing their base budgets, Weeks said, while city administrators review individual line items and require departments to explain what budgeted dollars are intended to purchase.

Weeks pushed back on the perception that large amounts of discretionary money are hidden within the city’s budget.

“You hear out in the public, ‘Well, city’s got slush fund, they’ve overstated their budget. There’s always fat in the budget,’” Weeks said. “That’s not necessarily the truth here in Mineral Wells the last two years.”

Mayor says requests for suggested cuts received no response

The proposed tax increase has generated discussion among residents, particularly on social media.

Mayor Regan Johnson addressed that criticism following the budget public hearing, saying she had specifically asked residents who opposed the spending plan to tell council members what they believed should be removed.

“I did understand quite a few Facebook comments and things put out and asked for the general public to please, please, please submit your feedback,” Johnson said. “What do you want to see cut? And I received zero emails.”

No residents spoke against the proposed budget during Tuesday’s public hearing.

Two representatives of public safety employees did speak, both supporting the city’s increased investment in compensation and retirement benefits.

Taylor Ward, speaking on behalf of firefighters’ Local 4674, said the changes could improve retention and recruiting within the Mineral Wells Fire Department.

“Your decision to improve salaries and benefits shows your continued investment in the citizens of Mineral Wells and its employees,” Ward said.

Mineral Wells Police Officers Association President Thomas Lively thanked council members for addressing public safety compensation and increasing retirement contributions while asking that dispatchers receive particular attention during the upcoming compensation study.

“Dispatchers are the lifeline between our community and the first responders who serve it,” Lively said. “Their compensation should reflect the critical role that they play in public safety.”

Councilwoman Beth Watson also defended the increased retirement contribution, particularly for employees in physically demanding jobs.

“I feel like we have public safety employees, EMS, fire employees, also people who work in the street department out in the hot every day,” Watson said. “Those people have different physical requirements. They can’t do this till they’re 65 years old.”

Watson said she felt strongly that the city should provide those employees with an adequate retirement benefit while maintaining sufficient financial reserves.

Tax rate would return city near historic levels

Assistant City Manager and Chief Financial Officer Aaron Bovos continued the city’s discussion of the proposed property tax rate following the budget hearing.

The proposed rate is $0.7007075 per $100 of taxable value, compared with the current rate of $0.5717881.

Bovos said the proposed rate represents an approximately 18% increase in the tax rate and includes both the city’s maintenance and operations and debt-service portions.

Weeks noted during the budget presentation that the proposed rate would return Mineral Wells to roughly the level of its overall city tax rate several years ago. In 2021, the city’s total tax rate was approximately 69 cents per $100 of taxable value.

City officials have also stressed that Mineral Wells’ overall taxable property value declined heading into the new fiscal year.

Bovos said the decline was driven primarily by two factors: property value lost following the May tornado and a new state exemption affecting business personal property.

He said those losses alone would have required approximately a 2-cent increase in the city’s tax rate simply to generate the same amount of property tax revenue as the current fiscal year.

Using a constant $100,000 of taxable value, Bovos said the proposed rate would generate approximately $128.92 more in annual city property taxes than the current rate.

The council selected the de minimis rate earlier this month for use in preparing the proposed budget. Final adoption is scheduled for Aug. 24 following a public hearing.

No water rate increase; sewer charges would rise

The proposed budget includes no increase in city water rates, although sewer rates would increase.

Weeks said a typical customer using approximately 4,000 gallons of water with a 3,000-gallon winter sewer average would see the combined monthly utility bill increase from approximately $162.50 to $165.08.

That is an increase of $2.58 per month, or approximately 1.6% on the total bill.

The water and sewer fund is projected to maintain approximately 196 days of reserves, including 106 days above the city’s 90-day policy requirement.

Weeks said those reserves are not simply excess cash available for spending or rate reductions. A substantial portion must be maintained to meet debt-coverage requirements associated with the city’s bonds.

The water and sewer fund also reflects increased debt payments associated with the city’s major water infrastructure investments.

Capital budget targets streets, police, fire and water system

The proposed budget includes approximately $2.2 million in general fund capital projects.

Public safety investments include 38 police body cameras, two outfitted patrol vehicles, ballistic shields and breaching kits, fire and EMS handheld and mobile radios, two half-ton pickup trucks and a command vehicle and equipment.

Approximately $900,000 is designated for the city’s annual street maintenance program, along with approximately $400,000 for a street sweeper.

Water and sewer capital spending includes rehabilitation of the Ram tank, improvements to the Northwest 10th Street booster station, continued meter replacement, utility inspection equipment and a fire hydrant repair program.

Weeks specifically noted the hydrant funding during his presentation, saying the fire department was pleased to see money beginning to be dedicated to repairs.

Demolition bids rejected

As part of its consent agenda, council members unanimously approved rejecting bids received for the demolition of several derelict structures.

The city had solicited bids for the demolition work as part of its efforts to address condemned properties.

The proposed fiscal year 2026-27 budget includes approximately $100,000 for condemnation and cleanup of condemned buildings.

Council updates building codes

Council members unanimously approved updating Mineral Wells’ adopted International Code Council building codes from the 2012 editions to the 2024 editions.

The city will also adopt the 2024 International Swimming Pool and Spa Code and update its National Electrical Code from the 2011 edition to the 2026 edition.

Development Services Director Richard Glass said the goal is to establish clear and current standards without unnecessarily making construction or redevelopment more difficult.

“The goal is not to make construction or redevelopment unnecessarily difficult,” Glass said. “It’s to provide clear, current and consistent standards for both new and existing development.”

The updated codes will take effect Jan. 1, 2027, giving contractors, developers, design professionals and city staff several months to prepare.

No one spoke during the public hearing on the code changes.

Tourism budget approved

Council members unanimously approved the fiscal year 2026-27 tourism budget funded through hotel occupancy taxes under the city’s agreement with the Mineral Wells Area Chamber of Commerce.

Chamber President and CEO Seth Hobbs and Tourism Director Zach Balch presented the spending plan.

Balch said approximately $50,000 has been allocated for tourism-related grants. Funding supports events ranging from smaller community programs to major annual events, including the Crazy Water Festival.

Increased county hotel occupancy tax revenue has also allowed tourism officials to expand support outside Mineral Wells. Balch said just under $30,000 in county hotel occupancy tax grants went toward programs at Rocker B Ranch, Pickin’ at Possum and the Mardi Gras parade at Possum Kingdom Lake.

Tourism officials also plan to change how some established recurring events are funded, treating certain expenditures as regional advertising purchases rather than grants. Balch said the change could make more grant money available for new and developing events.

Water district expands supply options

Council members also unanimously approved the fiscal year 2026-27 budget for Palo Pinto County Municipal Water District No. 1.

Howard Huffman, executive director of public works, said the budget reflects the winding down of several district expenditures as major maintenance projects are completed and responsibilities associated with the new Hilltop Water Treatment Plant transition to the city.

Huffman also updated council members on efforts to diversify Mineral Wells’ water supply.

The water district currently obtains approximately 2,000 acre-feet of water through an agreement involving the City of Manvel and another 3,000 acre-feet through the City of Abilene.

Huffman said the district has approximately three years remaining on the Manvel arrangement and is negotiating extensions to the Abilene agreement, along with the possible purchase of some long-term water rights.

The district has also spent approximately two years pursuing agreements with area landowners who hold unused water rights. Huffman said the regulatory process for one such agreement is nearing completion and the district expects to make its first lease payment to a rancher before Oct. 1.

Those alternative supplies are having a significant effect on Lake Palo Pinto.

“Approximately one half of the water coming up the hill right now to the Hilltop Water Treatment Plant comes from these blending operations,” Huffman said.

Mineral Wells is currently receiving slightly more than 3 million gallons of water per day while the release from Lake Palo Pinto remains at approximately seven cubic feet per second.

Huffman described that as an “extremely low release rate” for this time of year, noting that historically the lake might have been releasing 20 to 30 cubic feet per second under similar conditions.

Library manager announced; Brown recognized

Council members also recognized accomplishments by city employees during the meeting.

Katy Lipsey, a Mineral Wells Public Library employee who joined the city in October 2023, was recognized for earning her Master of Library Science degree from Texas Woman’s University in May while working full time.

Parks and Recreation Director Carrie Stevenson said the degree was also important to the library’s 2027 accreditation and praised Linsey’s work expanding community programs and improving youth and teen spaces inside the library.

The city announced that Lipsey will become library manager effective Oct. 1.

City officials also recognized outgoing Marketing and Communications Manager Brittany Brown, who is leaving the city to operate her own business in Mineral Wells.

Weeks credited Brown with helping improve internal and external communications, one of the priorities he established when becoming city manager.

“We will never be able to replace Brittany,” Weeks said. “Her position is replaceable, but Brittany is not.”

Brown said leaving the city was not an easy decision and thanked council members and staff for the opportunity to serve Mineral Wells.

“It has truly been an honor to be here, to see the growth of this community,” Brown said.

The Mineral Wells City Council is scheduled to meet in special session Aug. 24 to consider final adoption of the fiscal year 2026-27 budget and property tax rate.

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