Budget Discussion Centers On Lower Tax Rate

Princeton City Council spent much of its Sept. 8 work session reviewing a revised 2026-27 budget built around the voter-approval tax rate of 0.472959, lower than the rate staff had presented in August. Finance staff said that shift reduced ad valorem revenue in the general fund by about $3.33 million and required a new round of cuts while trying to preserve current core services.

Chief Financial Officer Kelly Wilson told council the earlier August presentation had used a higher rate, but the revised proposal followed council direction to return to the voter-approval rate. She said the action expected later that night was to set the proposed tax rate and a public hearing date for Sept. 16, not to adopt the budget. By the end of the work session, no final action had been taken on the budget.

Wilson said the proposed tax rate would amount to a 3.27-cent increase from the city’s current rate. Using the city’s median home value, she said the city portion of property taxes would rise by about $26.53 a year compared with what residents are paying now. She also said that on the same home value, the proposed rate would cost about $85.77 more per year than the no-new-revenue rate.