Pearland City Council on Monday voted unanimously to adopt, on first reading, a 2012 property tax rate of $0.7051 per $100 valuation, an increase of two cents from the 2011 tax rate.

The 2011 tax rate was $0.6851 per $100 valuation.  The additional two cents will be used to increase payments on the city’s bonded indebtedness.

“The increase in the tax rate is needed to support debt on such projects as Magnolia, Orange, Walnut, Dixie Farm Road, Cullen Road, Cowart’s Creek Diversion, Fire Station No. 5, Town Ditch Phase III, and the Recreation/Natatorium Center, to name a few,” City Manager Bill Eisen said.

The larger share of the city’s tax rate, $0.49 per $100 valuation, will be dedicated to funding payments on the city’s bond issued debt.  The remaining $0.2151 per $100 valuation will fund maintenance and operations of the city.

The rate is an increase of 4.73 percent above the effective rate.  Adoption of the effective tax rate draws revenues equal to the previous fiscal year.

The city council voted to approve, on first reading, an ordinance adopting the city’s FY2013 Budget.  The final reading of the budget will be considered on September 24.

“The operating budget for fiscal year 2012-2013 totals $145,729,035 and the capital improvement program (CIP) totals $27,438,491, including transfers,” Eisen said.

The budget includes three percent step increases for civil service employees, a three percent increase into the civil service pay plan, and a three percent average merit raise for non-civil service employees.

The city council took no action regarding the city attorney’s compensation.  The item was discussed in an executive session.

The city council voted to approve, on first reading, a request to change the zoning of 101.1405 acres of property at the southwest corner of Main Street and Knapp Road from a Light Industrial District to a General Commercial District.

The current owner of the property, South Park Funeral Home, requested the change to General Commercial, as a Light Industrial District does not allow a mortuary or cemetery use, and only allows a funeral home use by permit.  South Park Funeral Home currently operates under both uses. 

“Therefore, the applicant is requesting that the property’s zoning be changed to General Commercial, which permits both land use designations by right, thus reflecting the property’s actual use,” Director of Community Development Lata Krishnarao said. “This will also allow the applicant to expand site operations in the future without triggering and zoning requirements, such as a zone change or conditional use permit.”

All other items were approved by unanimous vote.  All members were present. Agenda