For the third consecutive year, the city tax rate will remain at $.25, among the lowest in the Houston area. However, the tax rate has yet to be formally adopted by the council. Once the city receives the official tax roll from the Harris County Appraisal District, the rate can be adopted.

The city expects to hold a public hearing on the tax rate in October.

City expenses are expected to drop this year by a rate of 4 percent from the $15.5 million in 2008-09. With health insurance costs for the city increasing by the more than $400,000, the city had to cut back on supplies, fuel costs and professional fees to make up the difference.

The city projects to draw $15.5 million in revenue, an increase of 5 percent over last year. More than $500,000 of that amount includes debt proceeds from a reimbursement resolution adopted by the council for the Michel Road project.

Projections call for a drop in property tax revenue of more than $125,000, as well as $230,000 in interest earnings. City Manager Jan Belcher explained that interest rates on city savings funds have dropped from 4 to 5 percent, down to a half percent in some cases.

Belcher called the budgeting process for 2009-10 “ultra conservative,” and warned that the city would need to increase its revenue by increasing the tax rate by 11 cents over the next five years “to maintain the system.”

For more information about the budget, and to view the complete plan, visit tomballtx.com.

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