City finance staff presented the proposed fiscal year 2025 budget to the Rockport City Council on Aug. 13, 2024, asking council to set a public hearing on the tax rate and approving a schedule of future readings. The council voted to set a public hearing for Aug. 27, 2024, at 6:30 p.m. and recorded a proposed total tax rate for the public notice.

Budget highlights delivered by Ms. Schromer included a proposed 3.5% maintenance and operations (M&O) increase (the legal cap without special election), use of an unused increment and a requested 2¢ increase to the interest and sinking (I&S) rate. Collectively, the adjustments were presented as a path that would allow a 5% cost‑of‑living adjustment for staff, restart a vehicle and equipment replacement program, begin to address pool repairs, and fund portions of capital needs without depleting reserves.

Ms. Schromer told council the city is asking for an additional 2¢ on the I&S and the 3.5% M&O increase; staff said that combination would yield roughly $1.48 million in the first year and help fund debt service and capital priorities. She characterized the tax proposal as "a start" to address an identified $68 million capital needs list rather than a full financing of the entire program at once.

Council action: Council member motioned and seconded a resolution to set the required record vote and public hearing on Aug. 27 at 6:30 p.m. A motion amendment included the proposed total tax rate of 0.405294 per $100 valuation for public notice; council voted unanimously to set the hearing and record the proposed rate for notice.

Why it matters: Staff said reserves (measured in days) are below target and that a small tax change is intended to allow the city to restart capital replacement programs and avoid deferred maintenance that staff said would be more costly later. Ms. Schromer also described uncertainty from valuation protests and recommended monitoring mid‑year results.

Ending: The council set the Aug. 27 public hearing on the tax rate and a schedule for subsequent readings; staff will post the proposed budget and supporting materials online and return for readings and final adoption in September.