Each city is considering tax rates that are above the no-new-revenue rates, according to city documents.
The details
Friendswood
Friendswood City Council will hold a public hearing to discuss and approve the proposed tax rate of $0.514172 per $100 valuation at its Sept. 8 meeting.
City Council discussed moving forward with a higher tax rate of $0.526746 per $100 valuation of a home at its Aug. 4 meeting—a figure that exceeded the no-new-revenue rate of $0.501177 by more than 5%.
However, when City Council adopted the FY 2025-26 budget Aug. 25, the body scaled back the working rate to $0.514172—a smaller increase that still raises property taxes compared to last year and exceeds the no-new-revenue rate.
Because the proposed rate is higher than the no-new-revenue rate of $0.501177 per $100 valuation, but lower than the voter-approved rate of $0.567235 per $100 valuation, a public hearing was triggered. Still, no election is required, according to city documents.
Pearland
Meanwhile, Pearland City Council will also consider its budget and tax rate for the first time Sept. 8. However, to go into effect, it will need two approvals, according to city documents.
Pearland is considering a tax rate of $0.63 per $100 valuation of a home, which is lower than the city’s maximum tax rate that the council approved in August. Officials have clarified that the board’s approval lies behind the $0.63 rate and that the budget is built with that rate in mind.
However, both rates are higher than the city’s no-new-revenue rate of $0.619439. For a home with a median taxable value of $372,103, the difference in the tax bill between the two rates is around $40. Compared to last year, a $0.63 tax rate would be about $12 less than last year for a home of the same value.
Meanwhile, the city’s budget in terms of revenue is projected to increase from last year by 6.13%, while expenditures will increase by 2.43%, according to city documents. Salaries and benefits are projected to make up 69% of the city’s budget.
Stay tuned
Both cities will meet Sept. 8, documents show.
Friendswood will meet at 5:30 p.m. at Council Chambers, 910 S. Friendswood Drive, Friendswood.
Pearland will meet at 6:30 p.m. at Council Chambers, 3519 Liberty Drive, Pearland.
