The proposal calls for a decrease in the property tax rate, a hike on water and wastewater services and a continued slowdown in hiring.
Officials said erratic sales tax collections and flat-lined revenues make financial forecasting in a tough economy a bit more challenging.
Wednesday's meeting is set to begin at 9 a.m. at Tyler City Hall, 212 N. Bonner Ave.
Adoption could come Sept. 12, well ahead of the Oct. 1 start of the new budget year.
Sales tax revenue is the city's largest revenue source, and since the 2008 economic decline Tyler has lost more than $9.1 million from that funding stream.
Improvements could come in the new fiscal year, but no one seems to be banking on it.
City Manager Mark McDaniel described the new budget as “very conservative,” calling for continued belt-tightening and cost-cutting efforts, such as maintaining a lean workforce.
The proposal suggests decreasing the property tax rate by a tenth of a cent, from 20.89 cents per $100 valuation to 20.77 cents, records show.
“We're going down to the effective rate,” McDaniel said, describing the level at which revenues would equal the previous fiscal year.
The impact of the new rate means someone with a $100,000 home who pays $208.86 in taxes now will pay $207.71, about $1.15 less, the proposal shows.
People with a $150,000 home will pay $311.56 instead of their current $313.35, a $1.79 decrease; while those with a $200,000 residence will pay $415.42 rather than $417.72 for $2.30 in savings.
“For 15 years, we've been at or below the effective rate,” Mayor Barbara Bass said, noting the city carries a AAA bond rating, pays cash for most capital improvements and maintains a property tax rate that's among the lowest in the state.
Budget highlights include phased-in improvements at Tyler Pounds Regional Airport that include a rental car facility with a car wash bay and updated signage.
A new lift to aid in mobility for people with physical challenges and some cosmetic upgrades are planned for the Tyler Rose Garden Center, funded with hotel-motel taxes.
In other activities for the new fiscal year, street crews plan to add sidewalks in underserved areas and some streets are slated for a new coating of asphalt, officials said.
More shelters are suggested for Tyler Transit stops and a few more outdoor warning sirens are requested to alert residents to bad weather.
Rate hikes are suggested for water and wastewater services — 2 percent for water and another 7 percent for wastewater to ward off a looming $4.7 million funding gap, due primarily to $7 million in state and federal mandates, officials said.
If the council agrees to the adjustment in this new budget, an average household starting Oct. 1 could see a $2.43 increase on their water bill.
No changes are planned for solid waste collection, and city employees are being asked to pick up more of their costs for health insurance.
The budget proposal can be viewed online at www.cityoftyler.org or in person at City Hall, 212 N. Bonner Ave.