The city of Friendswood kicked off discussions for its fiscal year 2024-25 budget, which a June presentation suggests could result in a tax increase for residents.

The gist

On June 3, city staff shared a summary of a multiyear financial plan with Friendswood City Council to prepare officials as they begin planning the FY 2024-25 budget.

The multiyear financial plan is a planning tool that projects general fund revenues and expenditures over a five-year period using historical and trend analysis,Finance Director Rhonda Bloskas said.

With several months to go before approval, Friendswood officials are expecting to have a budget that breaks even, documents show.

By the numbers

The city expects its FY 2024-25 general fund revenue to be $41.2 million, the same amount as projected expenditures.

To capture the $22.6 million in property taxes, the largest portion of general fund revenue, city staff estimated a $0.5213 per $100 valuation tax rate would be needed, according to the presentation. The tax rate for FY 2023-24 was $0.500728 per $100 valuation, meaning the potential FY 2024-25 rate would be a 4% increase.

According to the city’s presentation, costs contributing to the tax rate increase include:
  • New emergency management service onboarding
  • A 5% increase in operating costs
  • A 4% increase in personnel costs
Friendswood is expecting an estimated 6% tax base growth annually, including both residential and commercial, according to the city’s presentation.

How the increased tax rate could affect the average tax bill was not immediately available.

Historically, the city has adopted a no-new-revenue rate, Bloskas said.

What’s next?

City staff will deliver a proposed budget to City Council on Aug. 1, and council will adopt the budget at the Sept. 9 meeting, according to the presentation.