Utility rates in Pearland are projected to rise to nearly 17% for fiscal year 2026-27, city officials said at Pearland City Council’s June 22 meeting.
The big picture
The city's utility debt service is projected to climb from $44 million in FY 2025-26 to $47 million in FY 2026-27 to help pay off major ongoing projects, including the Surface Water Treatment Plant and the Barry Rose and Longwood wastewater expansions.
“We’re not up here just arbitrarily saying, 'Hey, we need to make more money,'" council member Joseph Koza said at the meeting. "We have to pay our obligations, we have to do things or we sit here and turn into cities that don't take care of their infrastructure and let it decay.”
The rise in utility debt service stems from $524 million in capital projects to “meet regulatory requirements, growth and aging assets,” city documents note.
Diving in deeper
Along with about $524 million in capital projects, the city plans to issue roughly $316.8 million in funding for water and wastewater infrastructure over the next five years.
The projects will be funded primarily through new debt, impact fees and the Pearland Economic Development Corp., according to city documents.
Looking ahead
City staff will continue holding budget workshops throughout the summer, with the final five-year CIP and property tax rate scheduled to be formally adopted by City Council in September, according to city documents.
