City of Midland leaders finalize tax rate, budget

The Midland City Council voted Tuesday to approve the 2022-23 budget and tax rate.

The City of Midland budget includes $148.6 million in General Fund operating expenses (those funded by property and sales taxes among other revenue streams), according to information from the city. That total is $12 million more than what was budgeted for fiscal year 2022 and the most since fiscal year 2020, when General Fund expenditures reached $154.82 million, according to the city’s fiscal 2021-22 budget.

Previous budget workshops showed:

  • Personnel makes up 63% of City of Midland General Fund expenditures. Contractual Services account for 25%.
  • Fire and Police departments both make up 26% of the budget. The other departments accounting for 10% or more are Engineering (14%) and Community Services (10%);
  • Budget priorities, according to the city, included maintaining and rebuilding service to the public, downtown development, critical water resources and infrastructure plan, quality of place improvements, improve transportation avenues, improving city facilities and strategic final planning.

City property taxes


The property tax rate voted on was 0.355039. The city reported “this is effectively a 1.4% increase in revenue … all of which is due to new property.”

The approved tax rate will mean a tax increase to many people in Midland, according to information the city provided.

In 2021, according to the city, the average home value inside city limits was $295,000. Combined with a tax of 36.7189 cents per $100 valuation, that resulted in city taxes of $1,083.21.

For the upcoming fiscal year, the average home value inside the city, according to The Perryman Group, is said to be $325,000. Combined with an approved tax of 35.5039 cents per $100 valuation, that would result in city taxes of $1,153.76.

Other budget notes

To help pay for the increased spending, city officials went to the General Fund balance or reserves. City officials allocated $12 million in ARPA funds, $21.6 million for “infrastructure/growth” and $1.2 million for operating expenses.

The fund balance, which stood at $118.8 million at the end of the last fiscal year, will have an estimated $84 million at the end of this fiscal year, according to the city.

The city also reported operating expenditures of $230.4 million in other city funds, those not supported by General Fund revenues. Total operating expenses for all funds is $379 million.

 

General Fund expenditures

2022-23: $154.82 million#

2021-22: $136.59 million*

2020-21: $135.39 million*

2019-20: $154.82 million

2018-19: $126.31 million

#indicates approved

*indicates budgeted

Source: City of Midland

 

City of Midland tax rates

(cents per $100 valuation)

2022-23: 35.5039

2021-22: 36.72

2020-21: 35.89

2019-20: 36.47

2018-19: 39.22

Source: City of Midland

 

 

Taxes