Rosenberg City Council took a recorded vote Tuesday to set a proposed property tax rate and publish the required notices under Truth in Taxation after a lengthy budget presentation and discussion about reserves, employee pay and capital needs.

City staff presented a draft FY2026 operating and capital budget that included no planned water or sewer rate increases, funding for four new full‑time positions, expanded salary steps for the police department and an employer share of higher health‑insurance costs. Staff said municipal revenues are roughly 49% sales tax and 24% property tax and that a proposed tax rate of $0.33 per $100 of assessed valuation would balance the general fund without using fund balance. Staff also noted that one penny on the tax rate equals roughly $492,000 in recurring revenue.

During the presentation staff reported there is policy guidance to maintain a minimum 25% fund balance (about 90 days of operating reserves) and said the city’s general fund balance was roughly $20 million, with a target reserve of roughly $9.5 million. Staff described requested budget items — salary steps, a city‑paid increase in the employer health‑insurance portion and minor fee changes — and explained that a rate below the no‑new‑revenue calculation would require budget reductions or use of fund balance.

Council discussion was sharp and divided. Several councilmembers expressed a desire to provide tax relief to residents and pointed to the city’s fund balance as a reason to consider a lower tax rate. Other councilmembers cautioned that recurring operating costs — including recently implemented police pay steps and ongoing personnel costs — are not easily reduced and that drawing down fund balance to cover recurring expenses would be risky. The finance staff explained that the no‑new‑revenue rate calculated under state law was approximately $0.3343 and that the voter‑approval threshold was higher.

After debate, a motion to set the proposed tax rate and publish the notice under Truth in Taxation passed 4‑3. The motion recorded a proposed rate of $0.30 per $100 of assessed value for public notice; the council also set the budget/public‑hearing dates previously proposed by staff (budget workshops Aug. 12 and Aug. 14; public hearing Aug. 26; adoption vote Sept. 2). Staff stressed that the published proposed rate is a maximum for notice purposes only; council may adopt a lower rate on final vote but cannot adopt a higher rate than the published maximum.

Separately, council approved smaller, related items earlier in the meeting: acceptance of the 2025 certified property tax roll as submitted by the Fort Bend County tax assessor, acceptance of required Truth in Taxation calculations, and a 1.34% annual CPI pass‑through increase in solid‑waste fees effective Oct. 1, 2025. Staff also reported that GFL Environmental had requested the CPI adjustment per the city’s contract.