Baytown City Council Approves FY26 Budget, Sets Property Tax Rate
The Baytown City Council has approved the Fiscal Year 2026 (FY26) budget totaling $352.8 million across all funds and adopted a property tax rate of $0.69803 per $100 valuation, a slight reduction from last year’s rate of $0.70042.
The FY26 budget is balanced and reflects the City’s commitment to being as lean as possible with taxpayer dollars while also addressing the needs of a community experiencing rapid growth. The General Fund, which covers the City’s core day-to-day services, includes $135.9 million in operating costs and maintains a healthy 81-day fund balance reserve.
“This budget demonstrates Baytown’s responsibility to carefully manage resources while still making the investments a growing city requires,” said City Manager Jason Reynolds. “Large projects often require debt, and this budget uses available financing tools responsibly to fund critical infrastructure that will serve our community for decades to come.”
FY26 Budget Highlights
| * Property Tax Rate: | $0.69803 |
| * Overall budget (All Funds): | $352.8 million |
| * General Fund Revenue: | $143.0 million |
| * General Fund Expenditures: | $142.4 million |
| * General Fund Operating Budget: | $135.9 million |
| * General Fund Balance Reserve: | 81 days |
Major Projects Funded in FY26 (via Certificates of Obligation debt)
- Construction of a new Fire Station 2
- Expansion of BAWA East to enhance water distribution
- Water and sewer line replacement projects across the City of Baytown
- The West Baytown Drainage Project
- Market Street Project
- A portion of the Garth Road widening project
These projects are part of the adopted FY budget and are separate from the upcoming General Obligation bond, which could support additional long-term improvements.
Impact on Homeowners
For an average Baytown home valued at $145,358, the City portion of the property tax bill will be $1,015.95 in FY26. This reflects an annual decrease of $51.25, or about $4.27 per month, compared to last year’s average homestead value.
The FY26 budget will take effect on October 1, 2025 and will guide City operations through September 30, 2026. Property owners can see how the taxes from various government agencies affect their specific tax bill at hctax.net for Harris County and chamberscountytx.gov/279 for Chambers County residents. For more information, please visit baytown.org/461.