The City of Levelland is proposing approximately $36.2 million in spending for fiscal year 2026-27 across city operations, utilities, and capital projects.
The proposed total marks an increase of about $7.2 million, or 24.7%, from the fiscal year 2025-26 budget of about $29 million. Utility fund expenditures account for most of the increase, rising from about $12 million to $18.6 million, largely due to spending in the Wastewater Improvement Fund.
Levelland’s proposed property tax rate would increase from 55.5 cents to 57 cents per $100 of assessed value. Of that amount, 52 cents would fund maintenance and operations, 2 cents would go toward the cemetery fund, and 3 cents would support debt service. The current rate dedicates 47.85 cents to maintenance and operations, 3 cents to the cemetery fund, and 4.65 cents to debt service.
Under the city’s average home scenario, the estimated annual city property tax would rise from $896.80 to $989.52, an increase of about $93. Individual tax bills will vary depending on a property’s assessed value.
General Fund expenditures are proposed at approximately $12.9 million, an 11.9% increase from the current fiscal year. The fund supports many of the city’s everyday services, including public safety, parks and recreation, street maintenance, and general government operations.
Proposed General Fund expenditures include approximately $6.45 million for Public Safety, $2.69 million for Parks and Community Services, $2.03 million for Public Works, $1.49 million for General Government, and $228,919 for Development Services. Parks and Community Services represents the largest increase among the five programs at 53.9%.
Personnel costs are proposed at approximately $7.32 million, representing 61.7% of General Fund expenditures. The budget also continues targeted salary adjustments aimed at recruiting and retaining qualified police and fire personnel.
The proposed budget also includes several utility rate adjustments effective Nov. 1, pending council approval. The monthly water base rate would remain at $15.60, while residential wastewater consumption charges would increase from 15 cents to 25 cents per 1,000 gallons as the city continues investing in its water and wastewater systems. One of the city’s largest ongoing infrastructure projects is its new 1.8million-gallon wastewater treatment plant, which is expected to be completed in December. The Wastewater Improvement Fund is proposed at approximately $11.17 million, up from about $3.08 million in the current fiscal year.
The city has also identified about $1.59 million in capital purchases and improvements for the upcoming fiscal year. These projects are set to include cemetery improvements, park upgrades, downtown improvements, street equipment, and sanitation equipment.
The budget letter states the city enters fiscal year 2026-27 with unrestricted reserves equal to approximately eight months of General Fund operating expenditures, well above its three-month policy target. The city plans to use a portion of those reserves for capital purchases during the upcoming fiscal year.
The proposed budget remains subject to City Council for review and approval before Levelland’s new fiscal year begins on Oct. 1.