City of Brownfield adopts budget & tax rate

by Eric

The Brownfield City Council convened on Thursday, September 18, 2025, to address a lengthy agenda. After the call to order, invocation, pledges, and public comments (none were offered), the Council approved the minutes from the previous meeting and proceeded to the agenda.

Mayor Eric Horton moved item 12 to the forefront of the discussion. This item involved the consideration of using Hotel Occupancy Tax (HOT) funds to cover a portion of the cost for a mural planned by Forward Brownfield (the Brownfield Economic Development Corporation). In a prior meeting, the Forward Brownfield board had voted to request that the City Council use HOT funds to help offset some of the mural expenses. Councilman Tom Hesse made a motion to allocate HOT funds for half of the mural’s cost, which Councilman JC Tejerina seconded. The Council unanimously approved the motion. According to Gina Kelly, the executive director of Forward Brownfield, the mural will be located on the west outside wall of the Rialto Theatre, at 390 W. Main St.

The Council then returned to the agenda, moving on to the next items of business, which included the approval of the monthly finance and investment reports for August 2025. City Manager Jeff Davis presented the Council with the information showing that 4.73% of the fiscal 2024-2025 budget remained, totaling $620,347.09. He also provided the investment report, stating that as of August 31, 2025, the city had a total of $4,688,007.29 in all bank accounts, accruing $18,494.17 in interest. The report indicated that the city is over-collateralized by 58%. The Council approved both the monthly finance and investment reports.

The agenda included the adoption of the 2025-2026 fiscal budget. On Thursday, September 12th, the Council held a public hearing regarding the proposed budget. Following this hearing, the budget could be adopted in the next meeting. The proposed budget is set at $22.97 million for the 2025-2026 fiscal year.

Utility operations—encompassing electric, water, sewer, and garbage services—account for the largest portion of the budget, totaling $14.87 million, or nearly two-thirds of all revenues. These services are self-supporting through user fees, which means residents pay based on their usage.

Sales tax collections are projected to reach $1.33 million, reflecting a steady increase that indicates continued growth in Brownfield’s retail, housing, and tourism sectors. Although sales tax accounts for just 5.8% of the total budget, it remains a crucial funding source for local services.

Additionally, this budget results in a modest increase in property tax revenue, totaling approximately $1.63 million. This rate remains one of the lowest in the region for cities of comparable size. Other sources of revenue include Franchise and Other Taxes at $0.17 million and Other Revenues, Fees, and Transfers at $5 million.

The FY 2025–2026 budget allocates $2.7 million for capital projects as part of a multi-year strategy aimed at maintaining and improving infrastructure and equipment. Major projects include:

  • Public Safety: Acquisition of two new patrol units and the initiation of Phase I for a new animal shelter.
  • Streets and Fleet: Implementation of a seal coat program, purchase of a new dump truck, and replacement of the street sweeper.
  • Parks: Upgrades to irrigation systems and replacement of a maintenance staff pickup truck.
  • Water and Sewer: Rebuilding of pump stations and well buildings, procurement of a trench compactor, and acquisition of a wastewater vacuum truck.
  • Solid Waste: Replacement of a landfill dozer to ensure safe and efficient operations.

These projects are essential for daily operations and represent long-term investments that will benefit citizens for years to come.

The budget also allocates benefits for the city employees by:

  • Maintaining a competitive salary schedule that includes stability and longevity pay.
  • Continuing full coverage of health insurance premiums for employees and their dependents, along with deductible reimbursements through the Health Reimbursement Account (HRA).
  • Sustaining the City’s participation in the Texas Municipal Retirement System (TMRS) at current rates, ensuring long-term retirement security for our workforce.

After adopting the fiscal budget for 2025-2026, the Council held a public hearing on the proposed ad valorem tax rate for 2025. The proposed rate is the voter-approved rate of $0.469512 per $100 of property valuation. Currently, the tax rate stands at $0.481306, meaning the proposed rate represents a reduction of $0.011794.

The property values certified for 2025 have risen, reflecting confidence in the economy of Brownfield. The adopted property tax rate of $0.469512 per $100 valuation will generate a modest increase in property tax revenue, totaling approximately $1.63 million. This rate is among the lowest in the region for cities of similar size to Brownfield.

For the average homeowner, this rate translates to an annual City tax bill of about $469.51 on a home valued at $100,000, which comes to just under $40 per month for all city services funded by property taxes. These revenues primarily support essential services such as police, fire, parks, and streets, directly contributing to the safety and well-being of the community.

After the public hearing, the Council approved the voter-approved ad valorem tax rate of $0.469512 per $100 of property valuation.

The following item of business the Council would discuss and consider Ordinance No. 2164 of the City Council of Brownfield. This ordinance amends the Brownfield City Code by updating Appendix “A,” Article 7.000, titled “Utility Related Fees.” The amendments specifically address Section 7.700, titled “Electric Rates,” including:

  • Subsection (A) on “Residential and Monthly Billing”
  • Subsection (B) on the “Commercial Rate”
  • Subsection (C) on the “Gin Rate”

The rates for each category will increase by 2.5%. The Current residential rate of $0.13 per kilowatt-hour will be raised to $0.13327 per kilowatt-hour. These changes establish new rates for the provision of electric service by Brownfield Power and Light. Additionally, the ordinance includes a severability clause, repeals conflicting ordinances, provides for publication, and specifies an effective date. The ordinance was passed.

The Council proceeded to the next two items on the agenda, which involved listening to and reviewing the quarterly update and reports from Javier Duran, Director of Streets and Sanitation for the City of Brownfield. Duran reported that the department is continuing to pick up trash that does not fit in the dumpsters, tackling this issue alley by alley. Additionally, the street department is working on filling in potholes.

Next, the Brownfield Chamber of Commerce submitted a Type 3 special event application to sell wine at the 78th Annual Terry County Harvest Festival. After a thorough discussion, the Council approved the permit with a vote of 3-2. Councilmen Tom Hesse, Paul Vasquez, and JC Tejerina voted in favor, while Mayor Eric Horton and Councilman Ray McFarland voted against it.

The final item on the agenda was a consideration to amend the zoning ordinance, Article 403, titled “Alcohol Beverage Sales,” to revise the hours for selling beer and wine. According to Davis, there has been some confusion regarding the permitted sale times for these beverages. Currently, the ordinance stipulates that beer can only be sold from 10:00 a.m. to midnight from Monday to Saturday, and on Sundays, sales can begin at noon. In contrast, the Texas Alcoholic Beverage Commission (TABC) allows alcohol sales from 7 a.m. to midnight from Monday to Friday, and from 7 a.m. to 1 a.m. on Saturday (Sunday morning). Since this was a consideration to amend the ordinance, the Council decided to maintain the current hours as they are.

Mayor Horton, and Councilmen Hesse, McFarland, Tejerina, and Vasquez were present. Council members Lee Gamez, Marshall Martell, and Mary Valdonado were absent. The Next meeting is slated for October 2, 2025 in the Council Chambers at the City Hall.

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