The Rockport City Council on Sept. 3 adopted a tax rate of 0.405294 per $100 of valuation, a measure council described as necessary to shore up reserves, pay for a cost-of-living adjustment and address staffing and capital needs.

Finance staff told council the city’s reserve target is 180 days but that audited balances have fallen; the finance presentation noted the 2022 audit showed reserves equivalent to about 111 days. The finance briefing projected continued deficit spending unless structural changes are made. The staff presentation said the adopted tax rate includes separate components for maintenance and operations (M&O) and interest and sinking (I&S). The agenda packet summarized the proposed levy as 0.235544 for M&O and 0.169750 for I&S, producing a combined rate of 0.405294; staff said the rate “effectively” raised the tax rate by 14.57%.

Why it matters: Council and staff emphasized the longer-term financial consequences of low reserves, including the impact on the city’s ability to sell bonds for capital projects. One councilor, identified in the record as mayor, warned: “If it gets down to 90 days, we would not be able to sell bonds to issued debt because our bond rating would be so low.”

Budget priorities and conditions: In addition to the tax rate vote, the council discussed a proposed 5% cost-of-living adjustment for employees, a plan to move vehicle- and equipment-replacement funding to debt (I&S) to match asset life, and a placeholder in the budget for a police officer that would be funded only if a matching grant is awarded. Staff said if the grant is received and vacancies exist, the grant acceptance and associated hiring would return to council for approval; if vacancies remain unfilled the earmarked amount would be placed in reserves.

Public comment and council response: Multiple residents urged the council to reduce rates or cut spending rather than raise taxes. Council members said they had worked to trim the package from an initially higher proposal and that some difficult tradeoffs were necessary to restore reserve levels and stabilize operations.

Outcome: The motion to adopt the tax rate carried unanimously (Ward 1–4 and mayor recorded as aye). The budget and related ordinances will proceed under the city’s public-notice and second-reading requirements.