Rose budget workshop proposes de minimis tax increase, includes 12.8% utility rate step

City finance staff told the City Council of Rose on July 30 that the draft fiscal 2025–26 budget relies on the state ‘‘de minimis’’ tax provision to raise roughly $500,000 and includes a 12.8% utility-rate increase that is the second year of a five‑year plan. The presentation also includes a 5–6% solid-waste rate increase expected to generate about $100,000 and assumptions of flat sales tax.

The proposed budget matters because it pairs rising operating and benefit costs with weakening sales-tax receipts, prompting staff to use the de minimis allowance rather than higher cuts to city services. "This was a difficult year for us," said Mr. Cruz, a city finance staff presenter, and he warned the council that a rolling 12‑month sales‑tax indicator has turned negative: "This month was the first time we've been negative in quite a few years, actually, although it's 0.19%."

City staff said the 12.8% water and sewer increase is year two of a five‑year rate plan presented last year by consultant NewGen; staff estimated…