Budget Highlights & Impact

Budget Highlights-5


Every year, the City Council considers the state of resident services and makes decisions about

 how to fund, fix and enhance them. 

They do this by approving the way funds will be used in the Annual Fiscal Budget.

The city budget acts as a roadmap to show citizens how their money is being spent.


The FY 25-26 Budget was adopted on Oct. 1


FY 25-26 Budget & Tax Rate Public Hearing Presentation | August 2025

Download the FY25-26 Budget Brief

Tax Rate Proposal


Tax Rate Proposal

Proposed Tax Rate 

  • FY 2026: 0.378911 per $100 valuation
  • FY 2026 M&O: $0.208964 per $100 valuation
  • FY Debt Rate: 0.169947 per $100 valuation


FY Highlights

Fiscal Year Highlights

General Fund: $28,516,900 (3.9% increase)

3 new Positions – Animal Control Facility 

$4.7 million worth of capital projects 

$18 million in bond funded projects (approved by voters in May 2025) 

$2.4 million for Police Department Expansion (approved by voters in 2021)



GF Rev Website Graf
GF Exp Website Graf


The City is fortunate to have a diverse revenue stream. The City’s primary general fund revenue sources include sales tax, industrial district revenue, property tax, utility franchise payments and a variety of other revenues that include permit fees, court fines, recreation fees and interest. 

Major Operating Revenue Sources 

*Sales Tax

$8,326,575

*Industrial District

$7,800,00

Property Tax

$6,426,025

Utility Franchise Payments

$995,000

Recreation & Civic Center Fees

$1,010,300

Court Fees 

$427,600

Development permit fees 

$440,700

  


The FY 2026 budget proposes $28,516,900 in expenditures. 

Expenditures include costs for personnel, supplies, materials, equipment, utilities, professional and contracted services, and other items. Personnel costs represent the single largest category of expenditure at 66% of budget. At $11,754,897, and representing about 42% of the City’s overall budget, Public Safety is the single largest category of City expenditures.  

Major Operating Fund Expenditures

Salary Adjustment- $ 788,000 

3 Positions for Animal Control Facility - $171,400
 

Police & Fire Maintenance Contracts - $128,997
 

Maintenance of Donated Property - $100,000


Property Tax IMpact

Dollar Bill


In addition to city taxes, the monthly tax bill for Lake Jackson residents and homeowners includes taxes from the school district, county, community college and drainage district. 

* This illustration is for explanation and education purposes only.

Sales Tax

McDonald Cup


Sales Tax by the Cup


Sales tax is among the largest revenue source for any Texas city. When a person pays sales tax in Lake Jackson, a portion goes to the state and the county. Even though Lake Jackson receives a small portion of any sales tax, it still adds up. This fiscal year the city projects $8.3 million in sales tax.

This graphic shows how a single cup of McDonald’s coffee creates revenue for the local government. 

* This illustration is for explanation and education purposes only.



Capital Projects

The City has a portfolio of 29 Capital Improvement Projects that total $4,685,000 (General Fund, Utility Fund and Half-Cent Fund) and a series of new bond projects -- that totals $40.4 million. 

Capital Improvement Projects for FY 25-26 are:


General Fund | Total Cash Projects: $1,205,000
    Animal Control Facility Cages
    Generator Grant Match
    City Facility Maintenance
    CNG Fencing
    Service Center Office Building Roof Repairs
    Installation of CNG Fuel Posts
    Street Joint Sealant
    Air Conditioning Replacement
    Demo of Condemned Buildings Annual Traffic Control Cabinet Replacement
    GIS Assessment and Planning


Utility Fund | Total Cash Projects: $1,575,000
    Lift Station Evaluation and Rehabilitation
    Meter Replacement
    BWA Intake Point
    Water & Wastewater Facilities Corrosion Control
    Emergency Utility Repair
    Generator Grant Match 

Economic Development Fund | Total Cash Projects: $1,905,000
    Recreation Center Improvements
    Park Improvements
    Golf Course Improvements
    Civic Center Improvements

Voter-approved bond projects that will begin engineering design plans during FY 25-26

Public Safety Facilities | $6 million (2025) $2.4 million (2021) Funds will be utilized for the Police Department evidence room expansion, roof replacement, chiller replacement and a generator. Additionally, Fire Station 1 serves as the Main Fire Station for the Lake Jackson volunteer fire department and emergency management services. Rehabilitation will be completed on the truck bay exhaust system, lighting, underground storm system, metal roof and other roof repairs, and overhead doors.

Street Panel Replacements | $8 million The City has a goal to bring all thoroughfares surveyed in 2023 with a Pavement Condition Index (PCI) of less than 70 up to 70. Concrete panels will be replaced on: Center Way, Lake Road, Medical Drive, North Yaupon Street, Oak Drive, Oyster Creek Drive, Plantation Drive, Sycamore Street, That Way, This Way, Walnut Street, and Willow Drive, according to the ballot proposition.

Lift Station 1 & Force Main | $20 million Lift Station No. 1 has aged and is not structurally sound, the Force Main from it to the WWTP is the same vintage and needs to be replaced as well, along with other improvements to the wastewater system.

Drainage | $4 million Drainage pipes will be enlarged and slope paving will be done to strengthen drainage infrastructure and enhance storm resilience.