La Marque council adopts one-year budget, approves 2-cent tax increase for short-term debt

La Marque — The La Marque City Council on Sept. 25 adopted the city’s annual budget for fiscal year 2025–26 at the existing tax rate, then separately approved a 2-cent increase that council members said will be earmarked exclusively to cover short-term debt obligations while the city stabilizes finances.

Council members and staff framed the move as a time-limited measure to preserve the city’s credit and obtain short-term financing while auditors and managers work through prior years’ irregularities. “We saved $936,221,” City Manager Holly said during the presentation, and council members said that, together with other steps and one-time revenue prospects, the 2-cent increase will show lenders the city is taking steps to shore up reserves.

Why it matters: Residents packed the meeting to press council on a months-long fiscal controversy that includes a late audit, contested accounting for millions of dollars and repeated calls for a forensic review. Speakers said they fear repeated tax hikes if the city does not first identify where money was spent or lost. Council members said they balanced those demands against the practical need to keep the city operational and preserve its borrowing capacity.

What council did: The council first voted to adopt the operating budget that staff presented based on a 39-cent tax rate (the same base rate used the prior year). After debate, the council then voted 3–2 to set a revised tax rate that increases the ad valorem rate by 2 cents; the additional revenue from that 2-cent increase will be…