In a nutshell
The FY 2024-25 tax rate of $0.336365 per $100 valuation is 14.68% higher than the FY 2023-24 tax rate of $0.29332, according to the Oct. 7 agenda packet. With Tomball’s average homestead taxable value being $334,782, the average tax bill will jump from $903 to $1,126.09—an increase of 24.71%.
City Manager David Esquivel said the rate increase is necessary to fund infrastructure amid growth and development in the city.
“We assess the existing systems that we have, and then we assess what it’s going to take to expand for new growth,” Esquivel said. “You can only do that by looking at patterns of growth … and that dictates where we need to expand our systems, which then will define what type of projects we need.”
The four primary projects the city will be working on over the course of the next several years are two new water treatment plants, a wastewater treatment plant expansion and a lift station conversion for a total of $120 million, Assistant City Manager Jessica Rogers said. The city is funding these projects using certificates of obligation, a way cities can borrow money, and funds from the Tomball Economic Development Corp.
Quote of note
“To maintain the level of service that we have now, [the tax rate] factors in greatly, because we absolutely could change that level of service, and it would reduce the cost to do that service, but is that truly what the community expects and wants and needs?” Esquivel said.
How we got here
Exponential growth in a city or community can have a significant impact on both businesses and residents, said Bruce Hillegeist, president of the Greater Tomball Area Chamber of Commerce.
“With growth comes a higher cost of living, particularly in housing, which can make the area less affordable for some residents,” Hillegeist said.
In 2020, Tomball reached a population of 12,341 residents, and in 2023 the population increased by an estimated 15.1% to 14,201 residents, according to the U.S. Census Bureau.
The issuance of the $120 million debt over the course of 30 years allows the city to fund its infrastructure in time to experience no hardships, Esquivel said. He also said the state requires that cities start designing an expansion or addition of facilities like wastewater treatment plants once the city is at 75% of the capacity of that infrastructure.
“We’re very fortunate to be in this situation,” Esquivel said. “Growth happens very quickly, and for a city to move as quick as growth happens, typically they don’t match up.”
What else?
The city is also working on completing its alleyway project this November, which aims to enhance the alleyways to be walkable. Construction on the alleyway project, in conjunction with the TEDC, started in the fall of 2023. The TEDC’s portion of the project is expected to begin next spring, Rogers said.