Pearland council sets maximum tax‑rate hearing and dates; council keeps maximum at $0.635 per $100 valuation after 4‑3 vote

Pearland City Council on Aug. 11 set public‑hearing dates for the fiscal‑year 2026 budget and for the tax rate and adopted a resolution setting a maximum tax‑rate ceiling of $0.635 per $100 valuation for the budget process. The council voted 4‑3 to retain the $0.635 cap after a failed amendment to lower the maximum to $0.630 (an amount staff said equates to 1.7% above the no‑new‑revenue rate).

The resolution sets the budget public hearing for Sept. 8, 2025, at 6:30 p.m., with additional budget work sessions and hearings scheduled for Sept. 22. Council also set Sept. 8 and Sept. 22 as the dates for considering the tax rate; staff noted that a final tax‑rate decision that is higher than the no‑new‑revenue rate would require a 60% council vote under state law.

Council members debated whether to allow a half‑cent headroom in the maximum rate to preserve flexibility for infrastructure and priority needs, or to lock in the lower rate that staff had discussed at a prior special meeting. Member Carbone moved to amend the resolution to set the cap at $0.630, describing the motion as intended to reflect the budget the council had reviewed earlier. The amendment failed 3‑4. The final motion to set the maximum at $0.635 passed 4‑3.

Council members who favored keeping $0.635 said the higher ceiling preserves options for addressing infrastructure and other unfunded priorities before the final budget. Members who supported lowering the cap said they preferred to start the budget process with the lower rate the council discussed earlier.

Ending: Staff will post the formal budget and tax‑rate notices and present the proposed budget on the Sept. 8 agenda, with the Sept. 22 meeting available for final tax‑rate action and a second public hearing on the rate if needed.