Southlake's proposed $133.65 million budget for fiscal year 2026-27 would cut the property tax rate by a half-cent to $0.290 per $100 valuation.

Mayor Shawn McCaskill called the proposal "our best budget ever" and said the proposed tax rate would be comparable to one from 40 years ago, Community Impact reported Thursday, Sept. 3.

The budget features higher revenues and lower expenses than the current year, according to the outlet.

The proposed rate of $0.290 is down from the current $0.295, according to My Southlake News.

That reduction means the city would forgo roughly $1.35 million in revenue it could otherwise collect.

The rate also falls 1.16 cents below the no-new-revenue rate, the threshold at which the city would bring in the same dollars as the prior year.

The city proposes continuing its 20% homestead exemption, which reduces the taxable value of the average Southlake home by more than $217,000.

Mayor Pro Tem Dr. Randy Robbins commended city staff for maintaining the trend of decreasing the tax rate.

"It never ceases to amaze me how this staff can seem to do more with less every year," Robbins said at the council meeting, according to Community Impact.

Tax relief has been a consistent council priority. McCaskill said at the Aug. 18 council meeting that "the property tax relief is something that has been a policy and a priority of City Council since I've been involved and even before that," My Southlake News reported Aug. 20.

The spending plan maintains service levels across public safety, infrastructure and quality-of-life programs with no reductions, according to the proposed budget.

The General Fund balance would remain above the city's 25% target.

The city earmarked $21.05 million in cash for capital needs across eight funding sources, and existing property-tax-supported debt remains on track to be paid off within 10 years.

Chief Financial Officer Sharen Jackson said the budget matches recurring revenues and expenses so the city does not rely on one-time money to fund ongoing obligations, according to My Southlake News.

The fiscal year begins Oct. 1. A public hearing on the budget is scheduled for Tuesday, Sept. 15.

Residents can review the full budget document at CityofSouthlake.com.