Tyler Residents Face Higher Taxes, Water Bills in Proposed City Budget

Tyler’s proposed Fiscal Year 2026-27 budget includes increases to property taxes and water utility fees for residents, alongside significant investments in public safety and infrastructure. The City Council is scheduled for a final public hearing and vote on the budget and tax rate on Wednesday, Sept. 9, at 9 a.m. at City Hall, located at 212 N. Bonner Ave.

Under the proposal, the property-tax rate would rise to $0.242063 per $100 of taxable value, an increase from last year’s rate of $0.236452. The City estimates this change will increase total property taxes by $1.71 million, representing a 5.31% rise, and add $48.17 to the City tax bill on the average homestead.

Additionally, the proposed budget will increase the monthly water regulatory-compliance fee in two phases. The fee will first rise from $26.17 to $31.17 on Oct. 1, 2026. It will then increase again to $36.17 on Jan. 1, 2027, marking a total $10 monthly increase from the current rate.

Major investments outlined in the budget are primarily directed toward public safety. Of every General Fund dollar, 38 cents are allocated to police and 26 cents to fire, totaling about 64 cents. In comparison, parks receive 6 cents and the library receives 2 cents of every General Fund dollar. From Fiscal Year 2022-23 to the proposed FY 2026-27, police and fire operating expenditures have increased by approximately $10.1 million, or 18%, rising from about $56.2 million to $66.3 million. This comes as Tyler's population grew an estimated 7.4% from 2020 to 2025.

Specific public safety expenditures in the proposed budget include $523,768 for the fifth year of an Axon public-safety technology subscription, $2.3 million for specialized police vehicles, $6 million for six fire engines, and $4 million for two ladder trucks.

The increases in taxes and fees come at a time when many Tyler families are managing existing financial pressures. Tyler’s Census profile indicates a median household income of $67,486. Residents face median monthly owner costs with a mortgage of $1,743, or median gross rent of $1,252. The city also has a poverty rate of 12.5% and an uninsured rate of 21.2% among residents under age 65. The source material states that City Hall should treat every proposed increase as "a serious household decision."

Lauren Barnes, a Tyler native and public administration graduate, notes that a city budget outlines what City Hall prioritizes and what residents will be asked to pay. While acknowledging the importance of supporting first responders, Barnes suggests that growth in public-safety costs, potentially justified by salaries, equipment, and call volume, must be accompanied by clear public evidence of what residents receive in return.

Barnes raises questions about the necessity of all proposed public safety expenditures, arguing that necessity should be demonstrated, not assumed, especially when residents are asked to pay more. Specifically, before renewing or expanding major technology contracts, the city should disclose the full multi-year cost, the specific products used, the number of users, measurable outcomes, data-retention rules, and privacy safeguards. Barnes highlights that Axon markets AI-enabled public-safety products, and reports on its AI-generated police-report tools have raised concerns about factual errors. Therefore, Tyler should not expand surveillance or AI capacity simply because a vendor offers it.

The proposed budget also prompts a broader question about the nature of public safety. Barnes describes public safety as extending beyond emergency response to include elements such as safe sidewalks for children, effective drainage protecting homes, functional water and wastewater infrastructure, libraries, parks, stable housing, and crisis-response systems that dispatch appropriate professionals. These elements are presented not as competing priorities but as conditions that reduce harm before emergencies arise.

Other Texas cities, such as College Station, demonstrate how local governments can make visible investments in both safety and community stability. College Station's General Fund budget allocates roughly half to police, fire, and emergency medical services while also making visible investments in parks, transportation, water, wastewater, electric reliability, and other daily infrastructure. That city recently redirected over $800,000 in federal housing and community-development resources towards affordable rental rehabilitation and homeownership programs. Barnes suggests Tyler should publish a clear plan for using its housing, HOME, and community-development resources to preserve affordable homes and support residents.

Tyler, Barnes argues, does not have to choose between supporting first responders and investing in community conditions that enhance safety, health, and security for residents. A well-managed city, the source states, scrutinizes subscriptions, phases major purchases when feasible, measures results, and prioritizes prevention, affordability, and neighborhood stability.

Residents are encouraged to participate in the democratic process by attending the final public hearing and vote on Sept. 9, or by emailing Mayor Stuart Hene, City Manager Edward Broussard, and their City Council members before the meeting. Specific questions residents are encouraged to ask include why the City is using the voter-approval tax rate instead of the no-new-revenue rate, for a plain-language explanation of every fee increase, and for an annual public-safety and technology outcomes dashboard. Residents should also request that City Hall make future budget participation more accessible through evening and hybrid hearings.