The city of Fulshear has approved its budget for fiscal year 2026-27 while also raising the tax rate.
The overview
At a Sept. 1 meeting, Fulshear City Council approved the FY 2026-27 budget and raised the city’s tax rate in a 5-2 decision. Council members Camron Miller and Abhijeet Utturkar were the two dissenting voters.
The new tax rate is set at $0.190549 per $100 valuation, a 13.49% increase to the 0.167903 per $100 valuation tax rate from FY 2025-26. Finance Director Angela Alvarado said the city’s tax rate is still below what other neighboring municipalities like Katy, Richmond, Sugar Land and Rosenberg have proposed.
The tax rate will help the city support several operational projects including city hall building repairs, shade structures for Eagle Landing Park and a downtown land purchase.
As previously reported by Community Impact, the city’s new taxable property went from $375 million to $180.2 million in the past year, indicating a slowing in property growth.
The specifics
The FY 2026-27 general fund budget has revenues listed at $21.14 million and expenditures at $20.81 million, giving the city a surplus of $322,917.
The general fund is also funding one-time investments of $3.13 million in capital improvement plan projects to support facilities, parks, technology, streets and transportation.
What they’re saying
City Manager Zach Goodlander said it would be more efficient to use the general fund to help pay for the operational projects.
However, council member Utturkar wanted staff to look at the economic development corporation for funding for the downtown land purchase.
“I’m not on board with the downtown land purchase bringing into the city’s budget,” Utturkar said. “There’s no need to do that when there is alternate funding.”
Assistant City Manager Kelsee Jordan Lee said the EDC’s budget had already been approved before council considered them as a funding source, but a partnership can still occur regarding the downtown area.
Meanwhile, Mayor Pro Tem Sarah Johnson said it would be best for the city to go ahead and purchase the land now.
“I think our residents have been asking for these types of opportunities,” Johnson said. “To continue to make downtown unique, make Fulshear a cultural hub and this is an opportunity that us as a city can support that.”
What’s next?
The FY 2026-27 budget will begin on Oct. 1 and run through Sept. 30, 2027, per the city’s website.
