The big picture
On Sept. 9, City Council voted 6-1 to approve the budget and tax rate, which is lower than the tax rate in FY 2023-24, but still higher than the no-new-revenue rate.
Council member Rushi Patel voted against adopting the proposed budget and tax rate.
The property tax rate is lower than the FY 2023-24 rate of $0.6554 per $100 valuation, but due to Pearland’s growing property values, the city’s portion of the average property tax bill will increase by $61 for the year, according to city documents. This increase is based on a home with an average taxable value of $401,340, compared to $398,170 last year.
Property tax bills will be determined based on the value of each individual home.
The FY 2024-25 budget is about $9 million more in expenses, a 7.9% increase, than the originally adopted FY 2023-24 budget, according to city documents.
What to expect
As the city seeks to update its water and wastewater infrastructure, the new budget includes rate increases for Pearland water customers.
An average Pearland household using 6,000 gallons of water per month can expect to pay $7.06 in utility bills, or a 7% increase. Since 2021, Pearland has increased its utility rates each year.
Water and wastewater infrastructure projects the city plans to invest in in FY 2024-25 include:
- Barry Rose Water Reclamation Facility replacement and expansion for $229.4 million
- John Hargrove Environmental Complex Water Reclamation Facility expansion for $80.5 million
- Surface Water Treatment Plant for $175.5 million
- Longwood Water Reclamation Facility Decommissioning for $38 million
Quote of note
“No we’re not at no new revenue, but that’s impossible with inflation the way it is,” council member Layni Cade said. “To have the city work with that, I wanted to say I saw first hand our fire department at work. I was across the street from a house fire in Pearland ... a house with kids ... a whole family home ... and our fire department was there and ... put the fire out so fast. ... It really hit home to me how important it is that we have the city services that we provide.”
What’s next?
The new budget and tax rates will begin Oct. 1 and end Sept. 30, 2025, according to city documents. City documents suggest the budget could receive a second vote at City Council’s Sept. 23 meeting.
