Tax rate increase in FY 2023-24 a possibility for Friendswood residents
Published: Thu, 06/08/23
Tax rate increase in FY 2023-24 a possibility for Friendswood residents
Friendswood's preliminary budget shows the potential for a tax rate increase in fiscal year 2023-24.
(Sierra Rozen/Community Impact)
Community Impact
By Renee Farmer
Updated
A preliminary look at the city of Friendswood’s budget shows the potential for an 8.6% tax rate increase in fiscal year 2023-24.
The gist
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.