On Wednesday, Sept. 10, the Tyler City Council approved the budget for Fiscal Year 2026 (FY26). This year’s theme, “Core Services, Strong Foundations,” reflects the City’s continued focus on delivering essential services that residents rely on every day—like safe neighborhoods and smooth roadways. 

The adopted $219.3 million budget includes $14.5 million for water and wastewater improvements, funding for a second stormwater repair crew, more than $2.5 million for street maintenance, and a $1.9 million increase to Police and Fire to help retain skilled first responders and upgrade critical equipment. 

“We are focused on getting the fundamentals right,” said Mayor Don Warren. “This budget strengthens the services at the heart of every neighborhood, while carefully managing costs to make every tax dollar count.”  

Property Tax Overview 
The City has lowered the property tax rate from $0.240085 to $0.236452 per $100 valuation—its lowest rate in almost a decade. The new rate will maintain Tyler's position as having the lowest tax rate in Smith County and among Texas cities with populations over 25,000.  

Property values in Tyler have risen by 7.57%, with the average home now valued at $274,111, up from $256,462 last year, per the Smith County Appraisal District, a state-authorized agency. This results in an annual tax increase of $32.41 for the average homeowner. The actual change will vary based on the assessed home value.   

Property taxes represent only 32% of the General Fund. The City relies on other revenue sources, such as sales tax, grants, and careful budgeting, to bridge the gap and cover the full cost of keeping our community safe.  

Public Safety
Tyler’s Police Department holds CALEA accreditation—a national standard achieved by only 3% of law enforcement agencies. The adopted budget continues to invest in public safety, including $523,768 for the fourth year of the AXON replacement program, ensuring officers are equipped with state-of-the-art body cameras and tasers. 

The Fire Department maintains an elite ISO Class 1 rating, placing it in the top 1% of departments nationwide. This rating reduces insurance premiums for local homes and businesses. 

“Our first responders are second to none,” said Mayor Don Warren. “To keep Tyler safe, we’re committed to attracting and keeping the best—through strong support, competitive pay and the tools they need to do the job.” 

Tyler Animal Services will enter the second phase of kennel upgrades at the shelter to improve conditions and increase capacity. At the same time, Code Enforcement will continue demolishing up to 15 substandard commercial structures, promoting safety and revitalization across neighborhoods.   

Better Roads and Traffic Flow
Tyler will continue its two-cent property tax rate commitment to the street fund, equivalent to $2.4 million. Nearly $1.5 million is approved for crack sealing, while $870,000 is allocated to historic brick street repairs and $165,000 for public alley maintenance. Street maintenance staff will receive updated equipment, and funding for traffic signal maintenance will increase as part of the 10-year plan to modernize traffic signals across the City. 

Tyler Fights Flooding
The Storm Water Fund includes nearly $770,000 for drainage projects and adds a second clean-and-repair crew. Key projects include erosion repairs on North Glass Avenue and East Lake Street and drainage improvements on Covey Lane. The budget also approved the purchase of a concrete mini mixer truck to enable in-house repairs and reduce contractor costs.  

Improving Utility Systems to Maintain High Standards
The City is investing more than $14.5 million in critical water and sewer improvements, including $5 million for water distribution and treatment system projects and nearly $9.5 million for wastewater collection and treatment projects. Work includes replacing aging service lines, upgrading meters, expanding water access to underserved areas, and modernizing equipment at the Lake Palestine Water Treatment Plant—Tyler's primary drinking water source.  

Despite these investments, there will be no increases in water or sewer rates this year.  

"Reliable utilities are among the most important services we provide," said City Manager Edward Broussard. "Thanks to thoughtful planning and responsible budgeting, we're improving essential infrastructure this year without passing these costs to our customers."  

Solid Waste rates will also remain unchanged. Tyler will continue providing twice-weekly residential trash collection at one of the most affordable rates in Texas.  

To meet a federal mandate, the City must raise the Environmental Compliance Fee by $6.47 to support $287 million in wastewater projects required under a 2017 EPA Consent Decree. The increase will roll out in two phases—half in October and the rest in January 2026.  

Improving Our Quality of Life 
The approved budget advances several quality-of-life projects, including $802,500 to renovate Golden Road Park. 

"We have pioneered innovative methods to finance our Parks without taxpayer funds,” stated Mayor Warren. “The landfill tipping fee enables us to support vital quality of life initiatives that would otherwise be difficult to achieve with our low tax rate.”  

Using the Hotel Occupancy Tax, the City will redevelop the old fairgrounds, begin phase three of the Rose Garden's concrete bed replacement and fund a new elevator at the Rose Garden Center to improve accessibility.  

More Information
To view the budget presentation and more information, visit www.CityofTyler.org. To view the property tax calculator, visit Smith.TruthInTaxes.com/.  

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