Van City Council Approves FY2026 Budget and Tax Rate at September 24, 2026 Called Meeting

The Van City Council held a called meeting on September 24, 2026, at 6:00 PM at Van City Hall. No members of the public spoke during the public comment period. The council conducted a public hearing on the proposed tax rate and took action on the FY2026 budget, the FY2026 tax rate, and the FY2027 rate revenue. Mayor Ernie Burns presided. Council Member Mark Thompson was absent.

Public Hearing – Tax Rate

• City Manager Jeff Hudgens presented the FY2026 tax rate proposal. The proposed rate is 0.7358, which is the same as the previous year’s rate. He explained that three cents of the rate was shifted from debt service to maintenance and operations, allowing more taxpayer dollars to fund services and repairs thanks to sufficient sales tax revenue for debt coverage. Due to lower property appraisals, the unchanged rate will result in a $9,806 decrease in the tax levy according to state worksheets. Hudgens noted that state-mandated language in the adoption motion would technically declare a 1.02% effective increase, but the overall tax rate is not being raised. No members of the public offered testimony.

Discussion and Action Items

FY2026 Budget (Ordinance 09-24-2026-1) The council voted to adopt the appropriation ordinance for the FY2026 budget. The motion passed unanimously.

FY2026 Tax Rate (Ordinance 09-24-2026-2) Council Member Mark Heatwole made a motion to adopt the property tax rate, reading the required state-mandated statement: “I move that the property tax rate be increased by the adoption of a tax rate of 0.735800, which is effectively a 1.02% increase in the tax rate.” The council then voted on a separate motion to set the breakdown of the rate, approving a maintenance and operations (M&O) rate of 0.43 and a debt service (I&S) rate of 0.3058. The ordinance was passed with a vote of 4 in favor and 1 against, with Council Member Mark Thompson voting nay.

FY2027 Rate Revenue Ratification (Ordinance 09-24-2026-3) The council voted unanimously to ratify the rate revenue for FY2027.

Key Outcomes

• FY2026 Budget adopted (Unanimous).
• FY2026 Property Tax Rate set at 0.735800 (4-1 vote, Thompson dissenting).
• Tax rate breakdown established: 0.43 for M&O, 0.3058 for I&S.
• FY2027 Rate Revenue ratified (Unanimous).
• Meeting adjourned.