Midlothian City Council has taken significant steps towards shaping the city's financial future by establishing a maximum ad valorem tax rate of 0.65 cents during their recent meeting on August 12, 2025. This decision marks the beginning of the tax rate-setting process, which is mandated by state law. The council emphasized that this is not the final tax rate but rather a ceiling that can be adjusted lower if necessary.

The proposed tax rate will be discussed further in a public hearing scheduled for September 9, 2025. City officials clarified that while the maximum rate has been set, the actual rate adopted could be lower, allowing for flexibility in response to community needs and financial assessments.

In addition to the tax rate discussion, the council approved a renewal of the franchise agreement with Encore Electric Delivery Company. This agreement allows Encore to continue using city streets and public property for utility services. The terms of this renewal remain consistent with previous agreements, although questions arose regarding the franchise fee structure and its relationship to delivery charges. City officials reassured council members that the franchise fees are determined by the Public Utility Commission and are designed to grow with the city's consumption.

The meeting also included a public comment from resident Lisa Healy, who raised concerns about the transparency of the tax rate-setting process and the implications of potential debt payments on the city's finances. Her comments highlighted the importance of clear communication between the city council and residents regarding fiscal responsibilities.

As the council moves forward, the upcoming public hearing will provide an opportunity for residents to engage in discussions about the proposed tax rate and its impact on the community. The council's decisions reflect a commitment to responsible financial management while addressing the needs of Midlothian's growing population.