Clute council advances proposed 0.471757 tax rate after budget workshop; public hearings set for Sept. 4

City staff told the Clute City Council on Aug. 7 that adjustments to the proposed fiscal year 2025–26 budget and a drop in preliminary property valuations meant the city would publish a proposed tax rate of 0.471757 — an increase the staff said equates to 1.6 percent — and must begin the public-notice process.

The presentation at the special council meeting and budget workshop focused on several budget drivers: an unexpected healthcare rerate, a $120,000 grant offset for license plate readers that allowed the city to restore a planned UTV purchase to the capital budget, modeling around solid-waste options (keep service in-house or outsource), and a downward adjustment to the city’s taxable valuation after property protests. “It’s a pretty big decision, and we wanna make sure we’ve got all the information before you,” a city staff member said during the presentation.

Why it matters: the council voted to publish the proposed tax rate so the required notices can be posted and hearings scheduled. Publishing the proposed rate starts the formal Truth in Taxation process and triggers a public hearing and a final adoption vote at a later meeting. City staff told the council the change in taxable valuation compared with the figures used when earlier drafts of the budget were prepared created a revenue shortfall that helped drive the recommended rate.

Key details from the workshop:

- Health insurance: staff said an insurer’s initial rerate came in far above the city’s budgeted assumption; the presenter said the bid showed a 43% rerate while the city had budgeted for about 30%, and subsequent quotes were still pending. The staff said they were waiting on two additional quotes.

- License plate reader grant and UTV: staff said the city received a $120,000 grant offset for license plate readers and that allowed the council to place a utility terrain vehicle (UTV) back into the capital budget. Staff described the UTV as multipurpose, with emergency lighting and a stretcher-deck for EMS or other public-safety use.

- Solid-waste options: staff presented two budget scenarios: (1) maintain the existing in-house garbage service, or (2) outsource garbage service after a six-month spend-down. The presentation included modeled user fees starting at about $38 and rising in scenarios where the city retains in-house service.

- Taxable valuation and tax-rate math: staff said earlier revenue modeling used a taxable valuation figure “just north of $1,000,000,000” but that preliminary figures were lower after protests. Staff said they were now using a $949,000,000 benchmark against an actual preliminary number near $930,000,000, creating a roughly $20 million to $30 million swing in taxable value that affected revenue projections. On the proposed rate, staff said, “So if you’re at a $100,000 in the proposed rate, your tax bill is gonna go from right at 4 55 to 4 71.”

Council action and schedule: the council took a record vote to publish the proposed tax rate of 0.471757 so that required public notices could be published. The council also scheduled the required public hearings and final-adoption votes: a public hearing and the adoption votes for both the budget ordinance and the tax-rate ordinance were set for Thursday, Sept. 4, 2025 at 6:30 p.m. (City Hall). The motion to schedule the hearings and the related motions passed on council voice or roll-call votes and were announced as unanimous during the meeting.

Votes at a glance:

- Consent agenda (accounts payable reports for several weeks): approved (unanimous voice vote).

- Record vote to publish proposed tax rate 0.471757 (a 1.6% increase): approved (record roll-call vote; council instructed staff to publish notices and proceed with public hearing scheduling).

- Motion to schedule public hearing on proposed tax rate: approved (unanimous voice vote); hearing scheduled for Sept. 4, 2025, 6:30 p.m., City Hall.

- Motion to schedule public hearing on the proposed budget and announce adoption date: approved (unanimous voice vote); hearing and adoption date scheduled for Sept. 4, 2025, 6:30 p.m., City Hall.

What’s next: staff said they plan one more workshop on the budget to refine solid-waste modeling and finalize outstanding insurance quotes before final adoption. The council will hear public testimony at the Sept. 4 hearing and is scheduled to consider final adoption of the budget and tax-rate ordinance that night.

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