Tax Rate Needs To Be Raised To $0.5294 Per $100 Valuation, Without A Tax Rate Election
Katina Hampton, Director of Administrative Services, presented a preliminary FY 2023-24 budget to Friendswood City Council on June 5. A $0.04 increase in the city’s tax rate would be required to balance the $37.2 million budget.
Since 2021, the tax rate has been constant at $0.4873 cents per $100 valuation. According to agenda documents, factors contributing to the need for an increase include the issuing of bonds, payment for emergency management services, and maintenance charges for new projects.
Staff anticipates that the tax rate will need to be raised to $0.5294 per $100 valuation. The city, on the other hand, would not need to hold a tax rate election because it has an unused increment of $0.096 that it can use to raise taxes.
“The only way for organizations to survive on no new revenue is if they are in a high-growth area.” Unfortunately, we are not seeing new values added to the ground in terms of a new building quickly enough to keep up with increases in debt service and inflation,” stated City Manager Morad Kabiri.
Staff will deliver the proposed budget on July 28. The city will host a public hearing on the budget on August 28 and a tax rate hearing on September 11. Council will decide on both at their meeting on September 11.