The Dayton City Council adopted its budget for the 2026-27 fiscal year Monday night, Sept. 21, and set the city’s property tax rate at $0.652895245 per $100 of taxable value, with Councilwoman Sarah Vickery casting the lone vote against the tax rate.
The new fiscal year begins Oct. 1 and runs through Sept. 30, 2027. The council approved both the budget and the ad valorem tax rate following public hearings on each. Neither public hearing drew any speakers. No members of the public came forward to comment on the proposed 2026-27 budget or the proposed property tax rate.
The rate adopted by the council is the city’s no-new-revenue tax rate. It is slightly higher than Dayton’s current rate of $0.647592784 per $100 valuation.
According to the city’s taxpayer impact statement, the median homestead value used for the current fiscal year is $220,333, while the median value for tax year 2026 is $220,034. At the newly adopted rate, the estimated city property tax bill on the median-valued homestead would be $1,436.59, compared with $1,426.86 under the current fiscal year — an increase of $9.73, or 0.68 percent.
Before the council adopted the new rate, Vickery made a motion to retain the current rate of $0.647592784.
During the discussion, city officials clarified that Vickery’s proposal differed from the rate incorporated into the budget the council had just approved. They also explained that adopting the lower rate would not fully fund the budget as adopted.
Vickery questioned whether money could be transferred to cover the difference. Her motion ultimately failed.
The council then voted to adopt the no-new-revenue rate of $0.652895245, with Vickery casting the only opposing vote.
The council had earlier unanimously approved Ordinance O2026-31 adopting the fiscal year 2026-27 budget. Mayor Pro Tem Tonya Smikal made the motion, which Councilman Harry Barnes seconded. The budget uses the $0.652895245 tax rate. The council also approved a resolution formally ratifying the property tax increase reflected in the budget.
City officials explained that the ratification was required because the new budget will generate more property tax revenue than the previous year’s budget, despite the city adopting the no-new-revenue rate. Growth in new property value allows the city to collect additional revenue.
Finance Director Leslie Herrera and her staff received praise during the meeting for their work preparing the budget. Smikal thanked Herrera, her team and city department heads for their efforts to control expenses while putting together what she described as a well-rounded budget.
Herrera was also recognized Monday as Dayton’s September Employee of the Month. City documents credited her “hard work, dedication, financial insight, and creativity” in helping ensure the 2026-27 budget was balanced and also recognized the Finance Department’s role in completing the spending plan.
The council’s action came as Dayton closes out its current fiscal year in a positive operating position. Through August, the city’s General Fund had collected approximately $9.59 million in revenue and spent approximately $9.35 million, leaving revenues about $238,504 above expenditures with 92 percent of the fiscal year completed.
City Manager Derek Woods also gave an update on Dayton’s new animal shelter, saying the project is nearing completion. The parking area slab was poured the previous week and is now curing.
“We are very, very close on the animal shelter,” Woods said. “I am going to say end of October or before then we will be open. We will try to do a grand opening.”
Woods also reminded residents that Dayton’s National Night Out will be held from 5:30 to 7:30 p.m. Oct. 6 at the Dayton Community Center.
Mayor Andy Conner also told the council that the city has submitted comments regarding the proposed merger of Union Pacific and Norfolk Southern railroads. The federal Surface Transportation Board is seeking input as part of its review, and Dayton used the opportunity to document problems the city has experienced with trains blocking crossings.
Conner said additional information, including police data documenting incidents involving stopped trains and blocked crossings, could be submitted later.
“I think what’s important on this is it becomes a matter of record now,” Conner said.
In other business, the council approved the purchase of two new lift station pumps for the wastewater system and $825,729.79 in new camera equipment for the Dayton Police Department, including body cameras, vehicle cameras and drones.
The council also approved agreements involving the Liberty County Fire Marshal, MUD No. 9, Medina PID No. 5 and Westpointe Villages PID, as well as contracts related to a Texas General Land Office grant application.
Council later met in executive session to discuss legal matters, economic development and real property. No action was taken after executive session.