City Council reviews $63M budget proposal including tax and utility rate adjustments

Lake Jackson City Council has unveiled a proposed budget for the upcoming fiscal year, totaling approximately $63 million, during their meeting on July 7, 2025. The budget includes significant allocations for both the general operating fund and the utility fund, with the general fund proposed at $28.5 million and the utility fund at $22.6 million.

A key highlight of the budget discussion was the recommendation for a no new revenue tax rate, with the current tax rate set at 0.3259 and a proposed increase to 0.3673 due to rising debt service costs. This increase is attributed to recently approved bonds, which are expected to raise the debt rate by 4.7 cents. However, the maintenance and operation (M&O) tax rate will not see an increase, despite an anticipated $20 million in new property that could generate additional revenue.

The council is also considering filling three authorized positions related to a new animal control facility, with a budget allocation of $171,000. Additionally, a pay-for-performance budget of $586,000 has been proposed, reflecting a 4% increase across the board for existing employees. This decision has sparked discussions among council members regarding the balance between competitive starting pay for new hires and rewarding current employees for performance.

The budget also anticipates a $202,000 increase in sales tax revenue and an $850,000 rise in industrial revenues, indicating a positive economic outlook for the city. However, the council is cautious about the implications of these increases on future budgets and the need for careful financial planning.

As the council prepares for a scheduled work session on July 19 to delve deeper into the budget details, community members will have access to the proposed budget on the city’s website, ensuring transparency and public engagement in the budgeting process. The decisions made in this budget will have lasting impacts on city services and employee compensation, highlighting the importance of thoughtful fiscal management in Lake Jackson.