Tyler 2027 proposed budget: higher property taxes, water bills and street investments

TYLER, Texas (KLTV) – The City of Tyler’s proposed 2027 budget calls for increases to property taxes and water bills, along with investments in public safety, streets and water infrastructure.

Property taxes and water rates

At the proposed property tax rate, the owner of an average Tyler home would pay approximately $693 in city property taxes for the year — an increase of about $48 annually, or $4 per month. The city expects to collect approximately $33.53 million in property tax revenue, an increase of about $1.71 million.

Water bills would also increase to cover debt required by the federal government under the wastewater consent decree. The fee would increase by $5 on Oct. 1 and another $5 on Jan. 1. Another increase is expected in 2028.

Stormwater fee overhaul

The proposed budget would change how stormwater fees are calculated beginning Jan. 1, 2027. Currently, the fee is based on 7% of a customer’s water, sewer and irrigation charges.

Under the proposed method, the fee would instead be based on the amount of hard surface on a property, such as roofs, driveways, sidewalks and parking lots. One equivalent residential unit, or ERU, would represent 3,454 square feet of hard surface and cost $4.90 per month.

“This stormwater fee change is about protecting the residential customers,” Mayor Stuart Hene said. “The cost should reflect the impact a property has on the stormwater system, so residential customers are not adversely affected, effectively subsidizing larger commercial or industrial properties that create significantly more runoff.”

Public safety investments

The police department would receive $523,768 for the fifth year of the AXON subscription program, which provides equipment including body cameras, in-car cameras and Tasers.

For the fire department, the half-cent program includes $8 million for the demolition and reconstruction of Fire Station 2 and $5.8 million for construction of a fire training facility.

The city is also planning approximately $12.3 million in major police and fire vehicles and equipment that will need to be replaced as they approach the end of their useful service lives. The identified needs include six fire engines, two ladder trucks and several specialized police vehicles.

Streets and drainage

The proposed budget would establish a new city street crew to assist with crack sealing and base repairs currently handled by contractors. Bringing the work in-house is expected to allow the city to complete approximately 7.68 additional lane miles through the annual asphalt enhancement program and 16.9 additional lane miles through the crack seal program. The change is also expected to save approximately $200,000 in the first year, with greater savings anticipated in future years.

“Responsible budgeting also means looking for opportunities to work more efficiently,” Hene said. “If we can complete more work, improve service, and reduce costs over time, that puts the city in a stronger position to keep investing in the services our residents rely on while at the same time preparing for the city’s future.”

The Quality Street Commitment Fund would provide approximately $1.5 million for crack sealing, $869,772 for brick street repairs and maintenance, and $165,000 for public alley repairs and maintenance. The budget also proposes using technology already installed on city vehicles to help identify and prioritize potholes, pavement deterioration and other roadway concerns.

The proposed budget also provides $700,000 for stormwater capital projects and $5.8 million in half-cent funding for drainage projects.

Water and wastewater infrastructure

The proposed budget includes $13.6 million in cash-funded capital improvements, including approximately $6.83 million to replace variable frequency drives at Lake Tyler, $3.55 million for improvements at the Westside Wastewater Treatment Plant, approximately $2.52 million for the Southside Wastewater Treatment Plant aeration basin, and $700,000 for meters and meter boxes.

Additional operating investments would improve water-quality monitoring and protect critical equipment. Because the capital projects are cash-funded, the city can make these improvements without issuing additional debt specifically for this work.

The proposed budget also continues the transition toward uniform water and wastewater volume rates. For residential and commercial customers inside the city, the water rate for the first 25,000 gallons would remain $3.75 per 1,000 gallons. Most residential water customers are not expected to be affected by changes to the higher-use tiers because they typically use less than 25,000 gallons per month. Residential wastewater customers would continue to have wastewater volume charges capped at 10,000 gallons.

Parks and recreation

The proposed budget includes $802,500 for improvements at Stewart Park and funding to replace the chiller at the Glass Recreation Center. It also recommends bringing a mowing crew back in-house, a move expected to save over a quarter of a million dollars annually by 2029.

As work progresses on the Downtown Improvements Project, the budget includes $252,232 for maintenance of completed areas. Additional investments are planned at the Rose Complex, including continued improvements at the Tyler Rose Garden, former fairgrounds and Rose Garden Center.

What’s next

The City Council is expected to hold public hearings on the proposed budget and tax rate on Aug. 26 and Sept. 9. Final consideration of the Fiscal Year 2027 budget and property tax rate is anticipated on Sept. 9.