outstanding debt over the coming years, allowing for a lower tax rate rebound than previously expected. According to the presentation, the new highest estimated debt service tax rate is an increase from $0.3388 to $0.365, rather than the previous estimation of $0.395 per $100 of property valuation. These projected rates both assumed the passage of the upcoming $181 million drainage bond package coming to ballots on May 6. Pearland’s Budget O cer Eric Roche said during the presentation that cur- rent tax projections are not indicative of what individual residents’ property tax bills will be next year. “We don’t have that information yet,” Roche said. “We don’t know what your home or property may be worth next year.” Council Member Alex Kamkar pro-
Original debt payment plan
New debt payment plan (with TIRZ funds)
ROAD TO RECOVERY
$71.3M
$80M
$45.6M
$55.9M
$44.5M
$42M
$60M
The city of Pearland updated its debt payment schedule with its latest plan to use tax increment reinvestment zone funds to support the payment of its debt obligations. Lower debt provides the city nancial relief and can result in lower tax rates.
$41.2M
$36.3M
$43.1M
$40M
$20M
$0
SOURCE: CITY OF PEARLAND COMMUNITY IMPACT
FY 2023-24
FY 2025-26
FY 2027-28 FY 2029-30
The city laid out a roadmap leading to its second budget amendment, which will allow for further rebalancing of the city’s nances. STEPS TO STABILITY
with a closure date of March 19, according to the job posting. Pearson had served as the city manager since March 2014. “Nobody wants to go through [ r- ing a city manager] because there’s a human side,” Cole said. “But at the end of the day, council felt it nec- essary that we needed to change the direction.” The posting calls for a candidate with at least 10 years of local gov- ernment experience. It describes the responsibilities of the city manager as providing executive leadership for Pearland and all its operations, and the role is the “go-between for the elected policy body, the City Council, the community and the city organization.” Epperson said he is considering applying for the open role at a Feb. 20 meeting. Kamkar said the city has received 18 applications for the posi- tion as of March 6. “We’re searching wide and hard,” Cole said. “We want to make sure that we have the best person for the 130,000 people that call Pearland home to run the everyday operation of our city.”
through interviews and document reviews, then followed by nal rec- ommendations to the council. City Council has sought an audit of its tax calculation process since Nov. 21, when it passed an agenda item to select a third party to review and prepare a forensic audit of the
March 20: Capital Improvement Project budget workshop
tested the plan, saying the way to keep the city’s property tax rate low is to reduce city spending. He said the gen- eral fund budget is “much larger” than the city’s tax base can a ord. “While I am glad to hear we are nding solutions by rolling over debt, we need to take a harder look at reduc- ing general fund spending instead
parties and pro- cesses involved with the 2023 budget process. “We wanted to get this done sooner,” Cole said. “The hard part was nding independence and nding a group that really hadn’t worked for the city, hadn’t worked for Harris
“ONE OF THE GOOD NEWS IN ALL OF THIS IS … THE CITY ADOPTED A TAX RATE BELOW THE NO NEW REVENUE RATE, WHICH IS A REALLY GOOD THING. … BUT AT THE SAME TIME, WE NEED TO MAKE SURE THAT THOSE CALCULATIONS ARE DONE CORRECTLY.”
March 27: City Council budget update
April 10:* Annual Comprehensive Financial Report presentation
May 22: Debt sale information session
June 12: First reading of Budget Amendment 2
County, hadn’t worked for Bra- zoria County or any of the other entities—and that really was the hang-up for getting there.” City manager search After Pearson’s removal Nov. 22, the search for a new city manager opened up to the public in February,
MAYES MIDDLETON DISTRICT 11 SENATOR
June 26: Second reading of Budget Amendment 2
of depending on nancial wizardry to solve our long-term spending issues,” Kamkar said. At a Feb. 13 meeting, the council approved a $36,750 contract with SGR for a two-phase 24-day audit process: rst, gathering information
*CITY STAFF DESCRIBES THE ACFR AS THE STARTING POINT FOR THE FISCAL YEAR 2023 24 BUDGET SEASON
SOURCE: CITY OF PEARLAND COMMUNITY IMPACT
For more information, visit communityimpact.com .
FIRST CLASS HAPPINESS® RESERVE YOUR TICKET TO
19
PEARLAND FRIENDSWOOD EDITION • MARCH 2023
Powered by FlippingBook