City of Waco Submits Proposed 2026-2027 Budget to Waco City Council

Published on August 06, 2026

City of Waco Proposed Budget FY 2024

Waco City Manager Ryan Holt submitted the proposed budget for fiscal year 2026-2027 to Waco City Council at the August 4, 2026, City Council meeting.

Review the Full Proposed Budget

Budget Highlights

The proposed budget is a comprehensive and responsible plan that maintains the current tax rate of 75.50 cents per $100 in valuation, which remains Waco’s lowest the tax rate for the past decade. This tax rate is based on the taxable value of existing and new properties from the Certified Tax Roll provided to the City by the McLennan Central Appraisal District (McCAD) on July 21, 2026. The total budget for all City operations is $733.3 million, a modest decrease of 3.9% over the previous year. The City of Waco budget includes:

  • A $213.3 million general fund to support core services like public safety, street and bridge maintenance, community and economic development, culture and recreation, and administration.
  • A $112.5 million Capital Improvement Program focusing on infrastructure modernization.
  • A $10.2 million investment in personnel compensation and benefits to provide competitive salaries for City employees.
  • A $8.4 million increased investment in fire and police for enhanced public safety services.

This budget positions Waco for continued growth while maintaining strong financial stewardship and service excellence. Although we continue to experience slow revenue growth alongside rising expenses, City staff worked diligently to align spending with strategic planning and ensure every dollar supports the city’s strategic priorities. The FY 2027 budget continues, for the third year in a row, efforts by City staff to propose significant budget cuts while maintaining core municipal services and infrastructure investment.

Impact on Taxpayers and Ratepayers

The average City of Waco homeowner and utility bill customer can expect to see an increase in their monthly payment for City services of $0.66. The adjustment breakdown includes:

  • Lower property valuations provided to the City by McCAD
  • $5.61 average increase for water, wastewater, and solid waste fees
  • $0.20 average decrease to the drainage fees
  • $1 increase to the street maintenance fee for single-family homeowners

Service Enhancements & New Initiatives

In the Fiscal Year 2026-2027 budget, many new service enhancements and initiatives were approved, particularly for Waco’s public safety departments, infrastructure and technology needs, community services, and quality of life amenities.

  • Public Safety: Additional fire alarm customer service representatives, fire apparatus replacements, police department crime lab and property room improvements, enhanced training, and equipment investments for first responders.
  • Infrastructure & Technology: Maintenance funding for essential IT infrastructure, Water and Wastewater system improvements, and fire station alerting system replacements.
  • Community Services: Continued operation of the STEAM Center, improved customer service capabilities across all departments, and development of an ADA Transition Plan.

Capital Improvement Projects

The FY27 Capital Improvement Program represents a strategic investment in critical infrastructure that will enhance service delivery and support long-term community growth.

  • Comprehensive street and bridge maintenance, preservation, reconstruction, and rehabilitation projects to maintain and enhance our transportation network.
  • Modernization of the water treatment plants to expand capacity in addition to improving pumpstations and storage facilities, upgrading and expanding wastewater systems, and enhancing drainage infrastructure.
  • Implementing the pre-construction phase for the new Fire Station 9 facility and beginning the construction phase for the new Fire Station 8 facility.
  • Continued development of new police crime lab and property room facility.
  • Airport administration office renovation project and crash phone system replacement.
  • Cameron Park Zoo upper Africa boardwalk and jaguar exhibit expansion.

Timeline

The proposed budget and certified tax roll were presented to Waco City Council on Tuesday, August 4. Over the following weeks, the City Council will review and may initiate amendments to the proposed budget. The final budget adoption will be on Tuesday, September 1. The approved budget for Fiscal Year 2026-2027 will go into effect starting Wednesday, October 1. The public is welcome to view or attend any of the public hearings at a City Council meeting. Meetings are held at the Bosque Theater in the Waco Convention Center, 100 Washington Ave., and are livestreamed at mywacotv.com.

For more information, media partners may contact Blu Kostelich, Assistant City Manager and Chief Financial Officer, at bluk@wacotx.gov.

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