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Residents could face a 12% increase in water rates and a higher fee for card payments under the city’s proposed fiscal year 2026-27 budget, changes that drew concern from council members Tuesday, July 21.
The Farmers Branch City Council took no action on the proposals. Finance Director Jay Patel said the fee changes are expected to return for formal consideration in August as staff completes the proposed budget.
The card-processing fee would increase from 2.5% to 3.5% and apply to all credit and debit card payments. Patel confirmed that the fee also would apply to credit cards enrolled in automatic utility payments, which have not previously been charged.
Residents could avoid the fee by using an automatic bank draft or paying with cash or check in person. Patel said the city also has a payment kiosk outside city hall, but card transactions would remain subject to the processing fee.
The proposed water increase drew greater concern because it would follow a 15% water and sewer rate increase that began with bills issued in November 2025.
Council member Elizabeth Villafranca asked whether the city could phase in the proposed increase to reduce its effect on residents’ monthly bills.
“We just had a huge increase, and another 12% in less than a year seems like a lot,” Villafranca said.
Patel said reducing or delaying the increase would push back water infrastructure projects included in the developing budget. He said the rate plan is intended to address accumulated capital needs and fund ongoing maintenance.
Any change to the proposed rate would remain a policy decision for the council, he said.
Council member Roger Neal said the water proposal and higher card fee would add to the financial pressure facing residents.
“We’re putting a little more and more each year seemingly onto the backs of our residents,” Neal said.
Neal also asked staff to revise budget communication materials that listed maintaining the current property tax rate as a goal. He suggested changing the language to reflect the possibility of keeping or reducing the rate.
The council has not set the property tax rate for the coming fiscal year.
Patel said the city was awaiting certified property values from the appraisal district before completing its property tax revenue estimates. Those figures are needed to finalize the proposed budget and begin tax rate discussions.
The proposed budget is scheduled to be submitted to the council by July 31. Discussions about fees and the property tax rate are expected to continue in August.
The developing spending plan also includes a 1% merit-based pay increase for most city employees. Directors and deputy directors would not be eligible under the current proposal.
The council is expected to consider the proposed fee changes and begin property tax rate discussions in August. None of the proposed increases have been approved.
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