Tyler’s proposed 2025 budget

TYLER – On Wednesday, Aug. 14, the Tyler City Council received the proposed budget for Fiscal Year 2025 (FY25) with a focus on serving all of Tyler efficiently and effectively. This budget continues Tyler’s tradition of responsible spending, addressing improved roadways and traffic flow, enhanced drainage systems, upgraded water and sewer infrastructure, and redeveloping public spaces. The FY25 proposed budget totals $255.9 million, reflecting a 6% increase from the previous year. Of this, $50 million will be allocated to capital expenditures upgrading water and sewer systems, and another $41.4 million will be devoted to traffic signal improvements, street reconstruction, increased drainage capacity, and the redevelopment of the Downtown Tyler square funded by Half-Cent Sales Tax revenues.

General Fund Overview
The new, proposed lower tax rate of $0.240085 maintains Tyler’s position as having the lowest tax rate in Smith County and among Texas cities with populations over 15,000. Projected property taxes for FY25 are approximately $30.5 million, comprising 32% of the General Revenue Fund.

Property values in Tyler have risen by 10%, with the average home now valued at $255,899, up from $233,647 last year. This results in an annual tax increase of $35.12 for the average homeowner. The actual change will vary based on the assessed home value. This will generate an additional $1.7 million invested in public safety and critical infrastructure.

Public safety remains a top priority, accounting for 67% of the General Fund Expenditures. The Tyler Police Department will receive $37.9 million, and the Fire Department will receive $25.8 million.

Enhancing Public Safety
The Tyler Police Department is CALEA accredited, a distinction held by only 3% of law enforcement agencies nationwide. To develop one of the nation’s premier police forces, the City will convert the former National Guard Armory into a $1.3 million Regional Training Facility funded by the Half-Cent Fund. The AXON replacement program will continue, ensuring our officers have state-of-the-art body cameras and tasers. They will also hire two new officers for the Downtown Beat, contingent on funding from Federal grants or the Downtown Tax Increment Reinvestment Fund (TIRZ).

The Fire Department boasts an Insurance Services Office (ISO) Class 1 rating, placing it in the country’s top 1% of fire departments. Improved insurance ratings in 2021 have reduced premiums for residents and businesses. The city plans to invest $2.6 million in one new fire engine and one ladder truck to maintain these benefits. Although these vehicles will not be available for 38-40 months, financing plans are in motion to lock in payments, reducing the overall cost. Additionally, we will purchase a portable Class A Burn Building for specialized training. Planning for the upgraded Fire Station 2, funded by the Half-Cent Fund, is also underway.

“Our first responders are truly among the finest in the nation,” said Mayor Don Warren. “We are committed to continually innovating, training, and fairly compensating these exceptional individuals who keep our community safe.”

Fortifying Streets and Stormwater; Optimizing Traffic Flow
The City will make strategic adjustments to improve Tyler’s maintenance efforts with minimal impact on the budget by repurposing vacant positions to add capacity in departments responding to extreme weather events, including street tree crews and stormwater management.

“This is about resilience through preparation,” said City Manager Edward Broussard. “In the face of extreme weather, we must be ready for whatever nature throws our way.”

Tyler will continue its two-cent tax rate commitment to the street fund, equivalent to approximately $2.3 million, for sealing miles of streets and preserving historic brick streets. An additional $20 million from the Half-Cent Fund will support street reconstruction projects and traffic improvements, including Year 5 of the Traffic Signalization Modernization Project.

Upgrading Water and Sewer Systems; Sustaining Excellence in Solid Waste Management
Tyler will invest $50 million in water and wastewater capital projects next year, focusing on customer experience. This includes an additional $1 million allocated to the current water-meter replacement project, taking the total number of new meter installations to approximately 11,000 by Dec. 2025. The City will also pilot a taste and odor study at the Lake Palestine Water Treatment Plant with the long-term goal of improving smell and taste. Water pressure across town will get a boost through added elevated storage tanks and upsizing old water lines.

On the wastewater side, improvements to treatment plants and infrastructure to enhance capacity, efficiency, and reliability will ensure Tyler can meet growing community demand.

Tyler Water Utilities will implement phase three of the uniform rate structure, increasing water and sewer costs between an estimated $10.90 and $24.49 for the average customer.

“We’ve completed studies on our water and sewer systems outlining improvements needed to meet Federal, State, and our own expectations,” said City Manager Ed Broussard. “The rate increases we put in place now are necessary to provide funding for these critical services to our residents, businesses, and other customers.”

Residential trash collection rates will increase by $0.91 monthly for the average cart, maintaining twice-weekly pickups.

Improving our Quality of Life

The City is set to launch Phase I of the Downtown Improvements project in January 2025. Over the next three years, $25.7 million will be invested to revitalize our downtown, starting with $10.3 million from the Half-Cent Sales Tax Fund in the coming year. This phase will enhance the west side of the square with expanded green spaces and right-of-way improvements, all while working to ensure minimal disruption.

The City will also complete the Legacy Trails trailhead at Stewart Park, improving connectivity between parks, neighborhoods, and commercial areas for all of Tyler. $775,000 from the Parks Capital Improvement Fund will improve landscaping, restrooms, and signage at the park to improve accessibility. Continued renovations at the Rose Complex will include demolishing outdated Fair Ground facilities to make room for future improvements.

Finally, the City plans to hire a horticulturist for the Rose Garden, Tyler’s top tourist attraction. This expert will maintain the garden’s 38,000 rose bushes, ensuring it remains one of the largest and most beautiful municipal rose gardens in the U.S.

Looking Ahead

Opportunities for public input on the budget are available by attending the Council meetings at Tyler City Hall, 212 N. Bonner Ave., on Aug. 28 and Sept. 11. Final adoption is scheduled for the Sept. 11 meeting. To view the budget presentation and proposed tax rate, visit http://www.CityofTyler.org. To view the property tax calculator, visit https://smith.truthintaxes.com/.