Waco, TX – Waco City Manager Ryan Holt presented the proposed fiscal year 2026-2027 budget to the Waco City Council during its Aug. 4 meeting, outlining a $733.3 million spending plan focused on maintaining city services, investing in infrastructure and supporting public safety.
The proposed budget would maintain Waco’s current property tax rate at 75.50 cents per $100 of valuation. According to the city, the rate remains Waco’s lowest tax rate of the past decade.
The tax rate is based on taxable values for existing and newly developed properties included in the Certified Tax Roll provided to the city by the McLennan Central Appraisal District on July 21.
The proposed $733.3 million budget represents a 3.9% increase from the previous fiscal year. City officials described the plan as a responsible approach to managing the city’s finances while continuing to address Waco’s growth and infrastructure needs.
The proposed General Fund totals $213.3 million and would support core municipal services, including public safety, street and bridge maintenance, community and economic development, culture and recreation and city administration.
The budget also includes a $112.5 million Capital Improvement Program aimed at modernizing infrastructure throughout the city.
Personnel compensation and benefits account for another $10.2 million in proposed spending, with the city saying the investment is intended to help provide competitive salaries for municipal employees. An additional $8.4 million is proposed for fire and police services to enhance public safety.
City officials said the budget comes as Waco continues to experience relatively slow revenue growth while expenses increase. Staff worked to align spending with the city’s strategic priorities, including a continued effort to identify significant budget reductions while maintaining essential municipal services and infrastructure investments.
The fiscal year 2026-2027 budget marks the third consecutive year in which city staff have proposed significant budget cuts while continuing to fund core services and infrastructure.
For the average Waco homeowner and utility bill customer, the city estimates that monthly payments for city services will increase by approximately 66 cents.
The adjustment includes a $5.61 average increase in water, wastewater and solid waste fees, a 20-cent average decrease in drainage fees and a $1 increase in the street maintenance fee for single-family homeowners. The city said lower property valuations provided by the appraisal district also factor into the overall impact on taxpayers and ratepayers.
Several new initiatives and service enhancements are included in the proposed budget, particularly for public safety, infrastructure, technology and community services.
For the Waco Fire Department, the plan includes additional fire alarm customer service representatives, replacement of fire apparatus and investments in equipment and training for first responders.
The police department would receive funding for improvements to its crime lab and property room, along with additional investments intended to support public safety operations.
Infrastructure and technology projects include maintenance funding for essential information technology systems, improvements to water and wastewater infrastructure and replacement of fire station alerting systems.
The city also plans to continue operating the STEAM Center, improve customer service capabilities across city departments and develop an Americans with Disabilities Act Transition Plan.
Major capital projects would include continued street and bridge maintenance, preservation, reconstruction and rehabilitation throughout Waco.
The city also plans to modernize water treatment plants to expand capacity, improve pump stations and storage facilities, upgrade and expand wastewater systems and enhance drainage infrastructure.
Public safety construction projects are also included. The budget calls for the pre-construction phase of a new Fire Station 9 and the beginning of construction for the new Fire Station 8. The city also plans to continue developing a new police crime lab and property room facility.
At Waco Regional Airport, proposed capital improvements include renovations to the airport administration office and replacement of the crash phone system.
The Cameron Park Zoo is also included in the capital improvement plans, with projects involving the upper Africa boardwalk and an expansion of the jaguar exhibit.
City officials said the proposed budget is intended to position Waco for continued growth while maintaining financial stewardship and the quality of municipal services. The proposal will continue through the city’s budget process before the fiscal year 2026-2027 budget is finalized.
