The Rosenberg City Council voted to adopt the fiscal year 2025–26 budget and set a tax-rate ceiling of 30 cents per $100 valuation during its regular meeting, approving Ordinance No. 2025-26 and related tax-rate motions.

The adopted budget presents a balanced general fund with total revenues of $43,700,000, based on a staff-proposed 33-cent tax rate that the council later reduced to a 30-cent ceiling. "The proposed budget presented by staff to city council included a balanced general fund budget with total revenues of $43,700,000 supported by the proposed tax rate of 33¢," Louis, a city staff member who presented the proposal, said during the meeting.

Why it matters: the council’s decision reduces expected property-tax revenue by about $1,476,950 compared with the staff proposal; council directed staff to use the city’s fund balance to offset that shortfall rather than cut the expenditure levels proposed for city services. The meeting record shows the council also approved separate roll-call motions setting the overall 30¢ tax-rate ordinance (Ordinance No. 2025-27), a maintenance-and-operations rate of 0.18298, and an interest-and-sinking (debt) rate of 0.11702.

Most important facts

- Revenues and tax-rate tradeoff: The budget package adopted includes $43.7 million in general-fund revenues and incorporated council’s decision to cap the tax-rate ceiling at 30¢ after staff had proposed a 33¢ rate. Staff estimated the revenue reduction from that cut at approximately $1,476,950 and said the city would use fund balance to cover the difference.

- Health-insurance adjustment: Staff included a $238,500 adjustment to cover higher health-insurance premiums; that amount will come from the city’s separate insurance fund balance, not the general fund.

- Employee compensation and staffing: Council and staff confirmed five new employee positions are included in the adopted budget. The compensation plan includes a 5% increase for certain direct reports, effective Oct. 1 under the current budget and compensation resolution. "The direct reports were included in the budget... It is included in this budget to get on October 1," a staff member said during the meeting. Councilmembers discussed that the typical performance-review window in March remains the time for any additional contract or compensation decisions.

- Legal and publication requirements: Staff told the council that state law requires adoption of the budget before the tax rate and that House Bill 1522, which took effect Sept. 1, 2025, requires a taxpayer-impact statement to be published when a governmental body discusses or adopts a budget. The staff presented the taxpayer-impact statement comparing the median-valued homestead tax bill for this year and the upcoming year.

Council discussion and votes

Councilmembers discussed whether to set the ceiling lower than 30¢. Several members warned that going below 30¢ could force reductions in services; Councilmember Jessica said, "I think we're gonna sacrifice the quality of service" if the tax rate were pushed lower. Other members advocated a cautious approach to preserve service levels and fiscal resilience. Following discussion the council approved the budget ordinance and the three tax-rate motions on roll call. The budget ordinance was approved by a recorded vote of six in favor and one absent. The three tax-rate motions — adopting the 30¢ ceiling (Ordinance No. 2025-27), the maintenance-and-operations component (0.18298), and the interest-and-sinking component (0.11702) — were approved on subsequent roll-call votes.

Distinguishing discussion from decision

- Discussion: Council debated whether to lower the tax rate further (members referenced 28¢ as a possible target) and asked questions about staffing, insurance, and how fund balances would be used. Staff clarified sources and timing for employee raises and insurance adjustments.

- Direction/assignment: Council directed staff to reconcile any future changes to the tax rate with corresponding budget adjustments or continued use of fund balance, and asked staff to provide a list of employees receiving car allowances and a list of the five direct reports included for the 5% increase.

- Formal action: The council adopted Ordinance No. 2025-26 (FY2025–26 budget) and approved the three tax-rate motions, with the budget vote recorded as 6–0 (one member absent) and subsequent tax-rate motions adopted by roll-call votes.

Background and next steps

Staff said the budget presented was filed with the city secretary on July 29, 2025, and was discussed at the Aug. 5 council meeting and the Aug. 11 budget workshop. Councilmembers noted that future budget adjustments are possible and that the council will revisit personnel contracts and other items during the March review period if needed. The immediate effect is that the county will be notified of the proposed tax rate so it can calculate collections under state rules. No future reductions above the published 30¢ ceiling are permitted under state law unless the council republishes a different proposed rate in accordance with statutory requirements.

Ending

Councilmembers did not change the adopted expenditure levels; instead they chose to use fund balance to smooth the impact of the lower tax rate for the coming fiscal year. Staff said it will provide the requested lists of car-allowance recipients and confirm which positions are included among the five direct reports that received the 5% increase.