City of Waco Submits Proposed 2025-2026 Budget to Waco City Council

Published on August 08, 2025

City of Waco Proposed Budget FY 2024

Fiscal Year 2025-2026

Waco City Manager Bradley Ford submitted the proposed budget for fiscal year 2025-2026 to Waco City Council at the August 5, 2025, City Council meeting.

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 23, 2025.

Review the Full Proposed Budget

Budget Highlights

The total budget for all City operations is $649.8 million, a modest increase of 0.1% over the previous year. The City of Waco budget includes:

  • A $210.3 million general fund to support core services like public safety, street and bridge maintenance, community and economic development, culture and recreation, and administration.
  • A $134.2 million Capital Improvement Program focusing on infrastructure modernization.
  • A $9.6 million investment in fire and police for enhanced public safety services.

For this year’s budget preparation process, City departments undertook a rigorous efficiency evaluation considering anticipated inflationary and economic pressures. Through this initiative the City of Waco achieved $32.2 million cost savings by eliminating more than 70 vacant positions, restructuring employee positions and department functions, implementing process improvements and technology solutions, and reducing professional services contracts. These strategic cost-saving measures will maintain the high quality of core services provided to Waco residents while also enabling future service enhancements.

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 $11.18. The adjustment breakdown includes:

  • Higher property valuations provided to the City by McCAD
  • $5.01 average increase for water, wastewater, and solid waste fees
  • $1 average decrease to the drainage fees
  • $2 increase to the street maintenance fee for single-family homeowners

Service Enhancements & New Initiatives

In the Fiscal Year 2025-2026 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 firefighter positions, a public safety psychologist, a crime scene technician, emergency management compensation improvements, enhanced training, and equipment for first responders.
  • Infrastructure & Technology: Maintenance funding for the Foster Pavilion parking garage and Fire Station 15, intelligent voice agent software, and IT system reorganization with staff market adjustments.
  • Community Services: Continued operation of the Doris Miller Pool, enhanced parks and recreation programs, and improved customer service capabilities across all departments.

Capital Improvement Projects

The FY26 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 pump stations and storage facilities, upgrading and expanding wastewater systems, and enhancing drainage infrastructure including the Lake Brazos dredging project.
  • Implementing the pre-construction phase for the new Fire Station 8 facility.
  • Developing a new police crime lab and property room facility.
  • Airport runway rehabilitation project.
  • Cameron Park Zoo jaguar exhibit expansion.
  • Cottonwood Creek infrastructure improvements.

Timeline

The proposed budget and certified tax roll were presented to Waco City Council on Tuesday, August 5. Over the following weeks, the City Council will review and may initiate amendments to the proposed budget.

  • Tuesday, August 19: A final presentation on the budget will be made to City Council to summarize any additional updates to the budget.
  • Tuesday, September 2: Waco City Council will approve the final budget.
  • Wednesday, October 1: The adopted budget will go into effect.

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.

Tagged as:
Back to top