City Council Maintains Tax Rate for 22 Years While Increasing Capital Project Budget

During a recent City Council Workshop in Laredo, officials discussed the city's financial stability and budgetary strategies, highlighting a commitment to maintaining the current tax rate for over two decades. The meeting, held on August 14, 2025, focused on the implications of a significant increase in assessed property valuations, which rose by approximately 11.3%. This increase allowed the city to adjust its budget without raising taxes, a move that has been in place for 22 years.

City officials reported a total budget of $1.01 billion, reflecting a 2.8% increase from the previous year. The general fund, which supports essential services, saw a 2.5% increase. Notably, the city has managed to reduce the maintenance and operations tax rate by 2 cents, reallocating those funds to the interest and sinking fund, which supports capital projects.

The council emphasized the importance of addressing long-overdue infrastructure needs, including public safety vehicles and parks and recreation facilities. The budget allows for capital projects totaling $82.7 million, a significant increase compared to previous years. This funding is crucial for replacing aging equipment and maintaining city facilities that have suffered from neglect.

Officials also highlighted the city's goal of increasing financial reserves from the current 15% to 25%, which would enhance the city's bond rating and lower borrowing costs. Public safety continues to be a priority, with 62% of the general fund allocated to this area.

The meeting underscored the city's proactive approach to financial management, with recognition from the Government Finance Officers Association for excellence in financial reporting. As Laredo navigates its budgetary challenges, the council's commitment to fiscal responsibility and community investment remains clear.