Houston City Council passed the city’s $7.5 billion budget June 10.
Budget explained
The new budget comes with significant changes, namely a new $5 administration fee that will eventually increase up to $25 over the next several years. It would also establish a Combined Utility System and designate the Solid Waste Department as a municipal utility under Texas law.
Other changes include a right-of-way fee, which would implement a fee on water and wastewater utilities for using public rights of way.
Public input
Mayor John Whitmire said he has had mostly support for the new fee, saying that it is being done without raising property taxes. However, the fee has been split among residents’ opinions.
Homeowners will be charged a $5 monthly administration fee that will be added to city water bills to cover trash and recycling services. The fee will remain at $5 for two years and could increase each year until it reaches the full cost of service at $25 per month by 2032. For this fiscal year, it is expected to generate $24 million.
After the budget was announced, residents attending public comment sessions cited concerns about an additional fee, saying they already have tight budgets and an additional fee would be an inconvenience. City Controller Chris Hollins also criticized the fee, saying it doesn’t cover enough of the city’s shortfall, which would be about $80 million after the fee's generated revenue.
What they're saying
After the June 10 meeting, Whitmire pointed out that though Hollins disagrees with the budget, he still certified it.
In a statement after the vote, Hollins said the budget deserves an "F" for transparency and accountability and said it “kicks tough decisions down the road.”
“Certification is not a stamp of approval. It only means the City can pay its bills for the next 12 months,” Hollins said in a statement. “This budget is not sensible, sustainable, or good for Houston’s future. We need to protect Houston’s long-term financial health. There is no question that today’s budget makes that job more difficult.”
However, those who do support the new fee note that it is one of the lowest fees in the state, with surrounding cities like Sugar Land having a $24 fee and, regionally, Dallas with a fee of $40.
What’s changing?
Some budget amendments addressed the fee, including a requirement that the administration provide the City Council with an evaluation during fiscal year 2026-27 showing whether the fee has created sufficient available funds and whether the fee could be reduced, offset or eliminated.
Other amendments included assisting low-income residents, seniors and individuals with disabilities with the fee, which will be added to the Water Aid to Elderly Residents Fund, or WATER.
“There is no perfect budget,” Whitmire said. “The budget is a continuation of reviewing state, city and local government and making adjustments. We can definitely make improvements and we’re going to do that.”
The vote
The budget passed 15-1, with council member Edward Pollard voting no and council member Tiffany Thomas absent.
Pollard said he could not support the budget because of overspending in the previous budget and due to the decrease in the city’s savings from $567 million when Whitmire took office to $274 million.
“If this is the budget, stick to it. But over the last two years, there has been no discipline,” Pollard said before the vote. “Spending over $180 million this year alone is fiscally irresponsible, and it is not sustainable. Due to the shown trends, there is no proof that this year will be any different, so I will be voting no until the overspending is corrected.”
Next steps
The new budget will begin July 1, and in two weeks, council member Alejandra Salinas said that City Council will take up an amendment that will implement assistance through the WATER Fund for the $5 fee. Officials from Whitmire's office said the fee will show up on most residents' August bills.
