Fulshear officials are preparing to adopt the city's fiscal year 2026-27 budget and tax rate.
What residents need to know
At an Aug. 18 meeting, Fulshear City Council proposed the maximum voter-approval rate of $0.20490 per $100 valuation, a 22% increase to the current tax rate of $0.167903 per $100 valuation.
In May 2025, residents voted for Fulshear to issue $13.5 million in park bonds and levy taxes to repay them. Due to the issuance of the voter-approved park bonds this year, the fiscal year 2026-27 interest and sinking rate has increased.
Finance Director Angela Alvarado said the maximum voter-approval rate pays for debt service and offers $912,000 in additional maintenance and operating funding, $1.25 million operating surplus and reserves above the city’s 25% target.
Though City Council leaned towards staff’s recommendation of $0.19310 per $100 valuation, which supports the preliminary budget, they voted for the maximum voter-approval rate as a precautionary measure since the council is not allowed to go above a tax rate once it is proposed.
Council member Omar Peña said this would let the city figure out details on proposed projects.
“That gives us flexibility to, at least, evaluate these projects on cost, timing, impact and how quickly can we get commercial business going,” Peña said.
Zooming in
Alvarado shared specifics on the city’s recently received certified tax roll and new property values:
- Total appraised value: $7.26 billion
- Total taxable value: $5.6 billion
- New taxable value of new property: $180.2 million
City Manager Zach Goodlander said last year’s taxable value of new property was $375 million, indicating a slowing in property growth.
“New growth will significantly slow down in the coming years and we’re kind of seeing that now,” Alvarado said.
Additionally, Fulshear’s taxable value is increasing, but the pace of growth has reduced over the past three years.
On the horizon
City Council will hold a public hearing on the budget and tax rate at its Sept. 1 meeting.
Council is scheduled to formally adopt both on Sept. 15, but Alvarado said they has the option to vote on them after the public hearing.
