La Marque council adopts 2025–26 budget, holds tax rate, approves $1.892 million wastewater contract and zoning changes

La Marque City Council on Aug. 25 adopted the city’s annual budget for the fiscal year beginning Oct. 1, 2025, and ending Sept. 30, 2026, while retaining the current tax rate of 0.39805 and increasing the debt (sinking fund) portion of the rate to 11 cents from 10 cents.

The actions taken at the regularly scheduled meeting also included approval of a $1,892,000 contract to rehabilitate headworks and chemical storage at the city’s wastewater treatment plant, two zoning ordinance amendments that rezoned several parcels to L‑2 industrial, and a set of resolutions to restore interim bank and investment account signatories while the city transitions finance staff.

Why it matters: keeping the tax rate steady while adopting a budget establishes the revenue assumptions for city operations and debt service for the coming year; the wastewater contract addresses a TCEQ mandate and will be paid from previously authorized bond proceeds; the signatory changes restore administrative access to bank and investment accounts that staff said had been lost after personnel changes.

Budget, tax rate and audit City manager Holly told council the proposed tax rate “is the exact same tax rate as you have now,” 0.39805, and that the only change in the split of that rate is an increase in the portion that funds debt from 10 cents to 11 cents to balance the budget. Council adopted the annual budget (ordinance O-2025-0018) on voice vote; the city clerk then recorded the roll‑call: Council member District A — Yes; Council member District B — Yes; Council member District C — No; Council member District D — Yes; Mayor — Yes.

Council also approved the ordinance levying ad valorem taxes for the 2025–26 tax year (ordinance O-2025-0019) on the same roll call (District C recorded as opposed).

On finance oversight, council accepted the draft single audit for fiscal year 2023–24 for purposes of meeting the city’s filing deadline and required review; staff said a final audit will be delivered before Sept. 1. In presenting the audit, staff described it as a routine single audit (the detailed federally‑funded programs review), not a forensic audit; in the draft the auditor reported no findings, according to staff.

Wastewater plant contract Council awarded the wastewater treatment plant headworks and chemical storage rehabilitation contract to Sustonite Support Services LLC in the amount of $1,892,000. City staff said the project responds to a TCEQ mandate and will be funded from the city’s 2020 bond program (described in the meeting as the “2020 CEO bond”). A city project representative said the lowest responsive bid came in slightly below the project estimate and recommended award so the city could proceed and avoid potential TCEQ enforcement.

Zoning amendments On second and final reading the council adopted two ordinances rezoning multiple parcels to L‑2 industrial: ordinance O-2025-0016 rezoned approximately 0.756 acres (a portion of Lot 55 of Mainland Homesteads, Galveston County property IDs 132658 and 132659) from R‑1 (single‑family) to L‑2 industrial; ordinance O-2025-0017 rezoned approximately 1.889 acres (a portion of Lot 56, and other lots listed in package; Galveston County property ID 132673) from C‑1 general commercial to L‑2 industrial. Both measures were presented by Developmental Services staff and passed after standard motions and voice votes.

Bank and investment account signatories Council approved a trio of resolutions to restore authorized signers and administrative access to the city’s bank and investment accounts after personnel changes left the accounts inaccessible. The resolutions (R-2025-0035, R-2025-0036 and R-2025-0037) proposed adding the city manager and a designated staff member to account signatory lists and to provide a limited “inquiry” or interim signatory role for another staff member who had been the repository of financial documents.

The proposal prompted extended council discussion about appropriate signers for investment accounts. One council member expressed concern about adding the human resources director as a signer and argued signatories should be consistent with other city accounts (chiefs and city clerk). City management described the recommended additions as an interim measure to allow staff to access accounts until a finance director is hired and offered to restrict one staff member to inquiry access as a compromise. Council voted to approve the interim signatory changes and directed staff to revisit permanent signatory designations when a finance director is in place.

Other business Council approved minutes and routine resolutions presented on the consent/meeting agenda. The council also discussed citizen participation rules in an extended, sometimes heated debate; after remarks from several members the council took no action on changing public comment procedures and agreed to revisit the subject later.

Votes at a glance - Ordinance O-2025-0018 (Annual budget, fiscal 2025–26): Passed. Vote recorded by city clerk: District A — Yes; District B — Yes; District C — No; District D — Yes; Mayor — Yes. Motion and second recorded as “moved/seconded” (movers not specified in the record). Notes: tax rate retained at 0.39805; debt portion (sinking fund) increased to $0.11 per $100 valuation.

- Ordinance O-2025-0019 (Levy of ad valorem taxes, 2025–26): Passed. Same roll call as O-2025-0018. Motion/second not specified in audio record.

- Ordinance O-2025-0016 (Rezoning — portion of Lot 55, Mainland Homesteads; ~0.756 acres R‑1 to L‑2): Passed on second reading. Motion and second on the record; voice vote passed (specific member votes not listed).

- Ordinance O-2025-0017 (Rezoning — portion of Lot 56 and listed lots; ~1.889 acres C‑1 to L‑2): Passed on second reading. Motion and second on the record; voice vote passed (specific member votes not listed).

- Award of contract to Sustonite Support Services LLC for wastewater plant headworks and chemical storage rehabilitation, $1,892,000: Approved by voice vote after motion and second. Funding described as from the 2020 bond program; project required by TCEQ.

- Resolution R-2025-0035 (authorize officers to sign/endorse city checks and drafts — bank accounts): Approved by voice vote. Motion/second presented; specific roll call not entered in transcript.

- Resolution R-2025-0036 (amend bank account signers): Approved by voice vote. Motion/second presented; specific roll call not entered in transcript.

- Resolution R-2025-0037 (authorize representatives to administer/manage city investment accounts; interim signers): Approved after debate; motion/second recorded; council directed staff to limit account privileges as an interim measure and revisit signatories after hiring a finance director.

- Draft single audit (fiscal year 2023–24): Accepted for filing and finalization; final audit to be presented before Sept. 1. Motion and vote recorded; one member opposed during the voice vote as recorded in the transcript.

What’s next Staff said it will deliver the final single audit before Sept. 1 and will implement the interim bank/investment access adjustments immediately so staff can obtain the financial records needed for operations and reporting. The wastewater rehabilitation contractor will be authorized to begin once contract documents are executed. The council asked staff and the ordinance review committee to continue work on code updates and to return with recommended mission/priorities.

(Quotes and attributions are taken verbatim from the Aug. 25, 2025 council meeting transcript.)