Fulshear officials shared an early look at the city's fiscal year 2026-27 budget during its special July 7 City Council meeting.
The outlook
The preliminary operating budget—which includes the general fund and utilities—showed $36.66 million in proposed expenditures and $43.93 million in proposed revenue, Budget Manager Mickey Mahoney said.
Meanwhile, Finance Director Angela Alvarado said the projected 2026-27 interest and sinking tax rate is expected to increase from $0.0514 to $0.06927— due to the $13.5 million parks bond approved by voters in May 2025—with the maintenance and operations rate likely to compress.
Zooming in
Alvarado said there will be seven new positions added for the 2026-27 budget, including three for police, three for public works and one for utilities.
Additionally, staff positions paid through the general fund will receive a 4% cost-of-living-adjustment to keep up with inflation as well as health benefits increase as a response to the overall increase in health care.
There will also be budgeted vehicle and equipment additions and replacements for the police, public works and information technology departments.
What else?
As part of the city’s $336.47 million five-year capital improvement plan, the major citywide and utilities projects in the 2026-27 budget include:
- Primrose Park
- Downtown east-side drainage improvements
- Harris Street reconstruction
- Pecan Knoll Water Plant onsite wells and improvements
- Downtown water reclamation facility expansion
Also of note
The projected ending fund balance is $8.9 million for the FY 2025-26, with the operating revenues exceeding operating expenditures by $1.2 million, Alvarado said.
Alvarado explained planned budgetary transfers will go toward capital projects such as infrastructure, and “one-time priorities,” including the east-side tributary drainage and Katy-Fulshear lift station.
Next steps
Fulshear staff will hold another budget discussion July 19 before the certified tax roll is received in late July or early August, Alvarado said.
The city budget and tax rate will be voted on in September.
