During its May 5 special meeting, Tomball City Council discussed the potential fiscal year 2025-2026 budget and tax rate.

The details

City Manager David Esquivel is projecting general fund revenues of $37.7 million and $40.6 million in expenditures with a $2.8 million deficit, according to the presentation. Esquivel is also projecting a total tax rate of $0.336365 for FY 2025-26. The reason for the deficit wasn’t explicitly mentioned during the pre-budget workshop.

Tomball will use its fund balance—essentially the city’s savings account—to cover the projected shortfall. The city’s fund balance sits at $32.3 million and is projected to have a balance of $29.4 million at the end of FY 2025-26, according to the presentation.

According to the presentation, the general fund is the largest operating fund for the city and is primarily funded through sales and property taxes. Esquivel said the fund is most impacted by changes in personnel costs.
What this means


According to the presentation, the general fund is the funding source for departments, including:
  • City manager’s office
  • Police
  • Fire
  • Finance
  • Human resources
  • Information technology
  • Community development
  • Streets, parks, facilities, garage
  • Community Center
  • Community service officer
City Council has also requested projects and programs for FY 25-26, including:
  • Downtown bus/trolley circulator
  • Expanding the historical archives program
  • Special event security improvements
Esquivel is projecting the tax rate to increase in the following years to contribute to the debt service payments. According to the presentation, the projected FY 2026-27 tax rate is $0.331210 and the projected FY 2027-28 tax rate is $0.343800. The debt issuance is $30 million for FY 2024-25, which will cover the cost of water and wastewater infrastructure, according to prior reporting.

Stay tuned

City Council will continue to meet leading up to adopting the tax rate and budget for FY 2025-26.