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Council reviews FY26 budget, shifts property tax rate from 33¢ to 30¢ and plans to use fund balance
Summary
Council reviewed the fiscal year 2026 proposed budget; staff said the property tax rate was cut from 33¢ to 30¢, reducing revenue by about $1.5 million and proposing to cover the shortfall from fund balance while preserving services.
The Rosenberg City Council held a workshop to review the fiscal year 2026 proposed budget and related funding choices.
Staff finance presenter Lewis told the council that, at the direction of the majority, "we reduced the property tax rate from 33¢ to 30¢." He said that change lowers projected property tax revenue by just under $1,500,000 and that staff propose using available fund balance to make up the shortfall rather than raising taxes.
Lewis outlined key budget drivers: personnel and benefits as the largest expense, rising health insurance costs (a 20.7% premium increase), debt-service obligations and higher vehicle and operating costs. He said the budget includes step and market adjustments for staff and four new full-time positions and noted that the city’s revenues are estimates that could shift as sales tax receipts come in.
Mayor and council members questioned whether using fund balance equates to a reduction in services; staff said the plan is to preserve service levels and that the budget remains an estimate until closer to year-end. Council directed staff to continue refining numbers before the public hearing.
The council will hold a public hearing on the budget later this month and a final vote, including adoption of the tax rate, at the meeting scheduled for Sept. 2.
