The Pilot Point City Council approved the fiscal year 2026-27 tax rate and budget at the Sept. 10 meeting.
Assistant City Manager Michele Sanchez shared that the M&O rate is $0.28029 and the I&S rate is $0.32469, for a total tax rate of $0.60497 per $100 of assessed valuation, the same rate the city adopted last fiscal year.
“The only cost we're seeing an increase on for the typical taxpayer next year is solid waste collection,” Sanchez said, “… So all added together is … less than a 1% increase in the typical tax rate impact.”
One change she noted is that the average home value has decreased, “so when you look at the total average overall, it's gonna say that the average homeowner is actually paying $23.17 less in property taxes.
“This might not be the case for everybody,” Sanchez added.
The certified tax rolls have steadily increased since 2022 to around $1.185 billion in certified value.
“Most residents within Pilot Point pay a three-set tax stack, meaning the city, the school district and the county, unless you are in one of our PID boundaries or you live in Grayson County and you pay their hospital district,” Sanchez said. “So the total tax stack right now would be 1.7 cents.”
She added that it was based on the district's proposed tax rate and the county's.
Sanchez also recapped what the proposed budget accomplished, including a 2% cost-of-living adjustment for all employees, market-rate adjustments for several departments, the creation of an engineering department and adding employees mid-year.
For the proposed general fund revenue, transfers and interest were the largest per- centage of operating funds at 25%, followed by development fees at 23% and ad valorem taxes at 21%.
Fire, EMS and police account for more than 50% of general fund expenditures.
“Every department except for water, sewer and utility billing is paid out of the general fund,” Sanchez said.
In projected water fund revenue, water accounts for 42% and sewer for 28%, the two highest percentages.
Sewer and water are the highest percentages, accounting for 39% and 38% of projected water fund expenditures.
'I move to approve resolution 2026-09-712, for the ratification of the Fiscal Year 2026-2027 budget, which will raise more revenue from property taxes than last year's budget by $1,130,647, which is a 25.09% increase from last year's budget,” council member Brian Heitzman read. 'The property tax revenue to be raised from new property added to the tax rolls this year is $1,029,742.'
The council approved an ordinance amending the land use assumptions, capital improvement plan, and maximum assessable fees for roadway, water, and wastewater impact fees. The council and the Pilot Point Police Department then discussed how to regulate the use of off-highway vehicles like all-terrain vehicles and utility task vehicles on public streets in city limits.
“Under section 551A.053 of the Texas Transportation Code, the governing body of the municipality may allow an operator to operate an unregistered off-highway vehicle on all or part of a highway that, one, is in the corporate boundaries of the city, and two, has a posted speed limit of not more than 35 miles per hour,” City Attorney Brenda McDonald read.
Police Chief Angela Mathews stated that the police department recommended allowing only golf carts within city limits.
Some of the reasons included safety concerns related to the high speeds of vehicles like ATVs and UTVs, risk of injuries, and “to be consistent with our neighboring cities such as Aubrey, Celina, Prosper and Frisco, who have prohibited ATV use,” Mathews stated.
Council member Everett Cummings supported the recommendation.
She shared that police proposed enforcing this for all off-highway vehicles, including issuing citations or warnings for minors or unauthorized persons operating a vehicle without a license, and enforcing the Texas Transportation Code on ATVs, UTVs and golf carts.
Several residents spoke on the issue, citing safety concerns about off-highway vehicles, especially underage drivers, and recommended educating residents about the changes ahead of time.
“We're growing like crazy, but we're still somewhat of a farm and ranch community, and I wanna recognize that,” Mayor Chad Major said. “And I know that's part of our culture. And I think my big focus is underage drivers. That seems to be the common challenge or safety issue.”
The main direction given by council is to allow offhighway vehicles within city limits with more rules in place and that drivers must be 16 and licensed.
“We are definitely not going to just go out tomorrow morning and start doing this,” City Manager Britt Lusk said. “There is definitely going to be an education campaign trying to make people aware and understand that this is not allowed.”
