The gist
Director of Administrative Services Katina Hampton presented a preliminary FY 2023-24 budget to Friendswood City Council during its June 5 meeting. The balanced $37.2 million budget would require a $0.04 increase to the city’s tax rate.
The breakdown
The tax rate has sat at $0.4873 cents per $100 valuation since 2021. Factors contributing to the need for an increase include the issuance of bonds, paying emergency management services and maintenance expenses for new projects, according to agenda documents.
Staff anticipate the need for a tax rate increase to $0.5294 per $100 valuation. However, the city would not need to hold a tax rate election since it has an unused increment of $0.096 that it can raise taxes by.
In their own words
“The only way organizations can survive off of the no new revenue rate is if they’re having a high-growth area. Unfortunately we’re not seeing new values being added to ground in terms of new construction fast enough to keep up with the increases in debt services and the increases in inflation,” City Manager Morad Kabiri said.
What’s next?
The proposed budget will be delivered by staff on July 28. The city will hold a public hearing on the budget Aug. 28 and on the tax rate Sept. 11. Council will vote on both during the Sept. 11 meeting.
