FORNEY — The Forney City Council has officially adopted its Fiscal Year 2026 budget, a responsible and balanced spending plan totaling $115 million. This budget includes a modest increase in property tax revenue of approximately 10 percent, higher utility rates, and a commitment to maintaining essential city services without drawing from reserve funds.
Approved on September 16, 2025, the budget reflects the city's ongoing efforts to stay financially stable, even as local growth and sales tax revenues show signs of slowing.
Property Tax Adjustments
The property tax rate for FY 2026 is set at $0.421431 per $100 valuation, an increase from last year's rate of $0.405240. This adjustment is expected to generate an additional $1.55 million in property tax revenue, primarily driven by new construction valued at $325.7 million. Notably, the city's property tax base has grown by 4.5 percent, marking the smallest increase since 2014.
The General Fund is projected to collect $45.6 million in revenue, representing a 10.7 percent increase compared to the previous year, with nearly 84 percent of this amount coming from property taxes.
Spending Priorities and Employee Support
With a total spending of approximately $115 million across all funds, the General Fund constitutes $52.3 million. Salaries and benefits account for over 60 percent of the city's general operating expenses, driven by new public safety contracts and necessary employee pay adjustments.
This fiscal year, the city is adding one new full-time position. In addition, all employees will receive a 4 percent cost-of-living raise alongside potential 3 percent merit increases. The police and fire departments will also benefit from enhanced step-plan raises negotiated through the Meet and Confer process.
Key General Fund expenditures include:
Fire Department: $12.1 million
Police Department: $11.7 million
Parks and Recreation: $3.2 million
Public Works and Engineering: approximately $5 million combined
Utility Rate Increases
Residents can expect an increase in water and sewer rates this year, as the North Texas Municipal Water District has raised its wholesale rates, which Forney will pass on to customers:
Water rates: increased by 7.5%
Sewer rates: increased by 16.7%
Sewer service charge: increased by $1 per month
City officials emphasize that these increases are necessary to support ongoing maintenance and regional infrastructure projects, such as the Buffalo Creek interceptor.
Capital Investments and Surplus Funds
Forney anticipates a $6 million surplus to close out the current fiscal year, which will be allocated toward one-time investments:
$2.94 million for capital improvement projects
$3.55 million for equipment purchases
$245,760 for the special events fund
The Capital Improvement Plan for FY 2026 will focus on completing existing projects rather than initiating new ones, with $775,802 earmarked from the Utility Fund for utility system upgrades.
Debt Management and Future Outlook
The city’s total municipal debt stands at $17.9 million. Forney continues to adhere to conservative borrowing policies and aims to maintain strong financial reserves.
While the budget anticipates a 2 percent decline in sales tax collections through mid-2026, reflecting broader economic uncertainties, it is designed to preserve service levels and support pay increases across all departments.
By the Numbers
Category | FY 2026 Amount | % of Total
Total Expenditures (All Funds) | $115 million | 100%
General Fund Expenditures | $52.3 million | 45.6%
Utility Fund Expenditures | $35.7 million | 31.1%
Property Tax Rate | $0.421431 |
Total Municipal Debt | $17.9 million |
A Year of Stability Ahead
With Forney's population now exceeding 28,000—a nearly 12 percent increase since 2022—the city is experiencing a shift from rapid expansion to a more measured growth approach. The FY 2026 budget is reflective of this transition, prioritizing stability over rapid expansion.
This year, the city is committed to maintaining service quality, supporting its workforce, and investing prudently in infrastructure as the community continues to evolve.
