Friendswood property tax rate could remain unchanged for fiscal year 2021-2022
On August 2, Friendswood City Council reached consensus on a proposed property tax rate of $ 0.487314 per $ 100 of assessment – which is the current tax rate – for the 2021-2022 fiscal year. . (Community impact newspaper staff)
On August 2, Friendswood City Council reached consensus on a proposed property tax rate of $ 0.487314 per $ 100 of assessment – which is the current tax rate – for the 2021-2022 fiscal year. .
The Council’s vote does not mean that the tax rate is set; the vote setting the property tax rate will take place on September 13, city manager Morad Kabiri said.
The tax rate has fallen in recent years, hitting a 40-year low at $ 0.487314 this fiscal year. Friendswood staff have presented their budget proposal for fiscal year 2021-2022 based on the tax rate remaining the same, said Katina Hampton, director of administration and finance.
The budget includes $ 125.4 million in projected revenues and $ 123 million in projected expenses. About 40%, or $ 50.8 million, of budgeted revenue is the fund balance and retained earnings that will be used to process capital projects related to voter-approved bonds. About 57%, or $ 70.3 million, of budgeted spending is for capital improvement projects, Hampton said.
Property tax revenue is about 17% of the budget at $ 21.1 million, and sales tax is about 9% at $ 10.8 million, Hampton said.
Based on the budget projections, Friendswood officials expect to generate around $ 1.3 million to $ 1.5 million in additional tax revenue in the 2021-2022 fiscal year. Sales tax revenue is expected to increase by $ 762,000 from what was budgeted at the start of fiscal year 2020-21, Hampton said.
Kabiri said that over the past 12 years, the city has generally adopted the tax rate with no new income or less. The No New Income rate is the property tax rate the city would set so as not to generate additional income from property taxes.
It was only in years when voters approved bonds for the city to issue debt to undertake larger projects that the city’s property tax rate exceeded the rate with no new income, Kabiri said. .
Council member John Scott said it was remarkable that a town the size of Friendswood had not collected new property tax revenue for so many years.
âIt’s impressive,â he said.
City council will hold a public hearing on the budget on August 30.