Friendswood staff presents FY2026 budget and proposes 52.6746¢ tax rate; public hearings set

Friendswood Finance Director Rhonda Blasmas on Aug. 4 presented the City of Friendswood’s proposed fiscal year 2025–26 municipal budget, describing an all-funds spending plan of $116.8 million and recommending a proposed citywide property tax rate of 52.6746¢ per $100 of assessed value.

Blasmas told the council that the proposed document was delivered July 31 and that councilors may still amend the budget before adoption: “Before I get started, I'd like to remind you that we can make changes to the proposed… budget up until adoption.”

Why it matters: the proposal would fund operating increases across city departments, advance capital projects funded by bonds and grants, and cover projected increases in personnel and insurance costs. If adopted at the proposed level, the rate is about 1.26¢ higher than the current Friendswood rate of 51.41272¢ and would produce additional revenue to fund decision packages and deferred maintenance.

Key figures and context - All‑funds proposed revenue and expenditures: $116,800,000. - General fund proposed revenue: $45,900,000 (about $4.1 million above FY2025 adopted). - Personnel costs: an increase of roughly $3.2 million year over year; the budget includes a 2.75% merit pool and hiring requests prioritized by department directors. - Deferred maintenance: $500,000 included to address aging infrastructure. - Decision packages: $2.8 million in prioritized department requests (approximately $2.5 million of that for staffing); roughly $290,000 one‑time and $2.7 million ongoing. - Water and sewer fund proposed revenue: $23.5 million; reflects a planned utility rate change effective Jan. 1, 2026.

Blasmas and staff walked the council through revenue sources. Approximately 40% of overall revenue is categorized as taxes (property, sales and franchise), and the budget also relies on the use of prior-year fund balance to complete grant- and bond-funded capital work. She explained fund-balance use as money already received for projects that is appropriated as revenue to offset current-year expenditures.

Council discussion and next steps Council members discussed the tradeoffs of holding the tax rate flat versus funding the staffing “true‑up” and other decision packages. City Manager Murad and finance staff outlined that certain costs are contractual or otherwise hard to avoid (debt service, insurance, and some contract increases) and that if council chooses a lower tax rate staff would need direction on what to cut from the base budget or from the prioritized decision package list.

Procedural actions taken - Council voted to set a public hearing on the FY2026 proposed budget for Aug. 25 at 5:30 p.m. (motion from Council Member Allesor; second from Mayor Pro Tem Metrank; motion carried). - Council voted to propose a tax rate of 52.6746¢ per $100 valuation and scheduled the statutorily required public hearing on the proposed tax rate for Sept. 8 at 6:00 p.m. (motion and second recorded in the August 4 meeting minutes).

What to watch Council will continue budget workshops (staff scheduled an additional workshop for Aug. 13) and will hear public testimony at the Aug. 25 hearing on the proposed FY2026 budget; the tax-rate public hearing is scheduled for Sept. 8. Any final tax-rate adoption or budget amendments must comply with state notice requirements and the city charter.