Rosenberg considers its first property tax rate increase in nearly a decade

ROSENBERG, Texas (KTRK) -- For the first time in a decade, Rosenberg is considering a property tax increase after financial leaders told council it faces a multi-million dollar deficit.

With a budget deadline looming, there were some tense moments at a Rosenberg city council meeting this week because of it.

"Instead of scaring these guys into thinking we're bankrupt," Mayor William Benton said.

"Mayor, we're not scaring anyone. We're giving you the facts," City Manager Joyce Vasut said.

City financial leaders told council the city faces a $2.3 million deficit. If nothing changes, they say it could double in two years.

To close the gap, the city manager says they could increase taxes, add fees, lay off employees or cut services, including tree trimming, mosquito spraying and a monthly newsletter.

City leaders say declining sales tax and property tax revenue are impacting the budget. The Texas legislature increased exemptions for homeowners and business owners as of November 2025.

This means the value they pay on their home for taxes drops. Now, after reducing the property tax rate every year for nearly a decade, they're considering an increase.

"I'm for tax cutting, but also, I'm here for the health of the city," Rosenberg City Councilmember Felix Vargas explained. "I just don't want the city to go bankrupt."

Here's what city leaders say a five-cent property tax increase would look like. If your home is valued at $290,000, you'd pay $116 more a year. It's an idea that Benton won't support.

"I think there are a whole array of ways government can get into your pocket," Benton said. "There are so many fees. I don't think it's a funding problem, I think it's a spending problem."

The city manager said she'll have a proposed budget by Friday. Council will consider a tax rate in August.

They'll vote on a new budget in September.