Pearland residents could face a lower property tax rate under a proposed fiscal year 2026-27 budget presented to City Council at its Aug. 10 workshop.
The proposed budget also reflects around 1.4% growth in revenue and 2.8% growth in expenses compared with FY 2025-26, city documents show.
What residents need to know
The projected property tax rate is at $0.627892 per $100 home valuation. This rate includes $0.351681 for maintenance and operations, or M&O, which funds daily operations, and $0.276211 for debt service, which primarily funds capital improvement projects.
For a property with a taxable value of $361,225, the annual property tax bill is around $2,200.
The total projected property tax revenue is nearly $40 million for FY 2026-27, according to city documents.
Budget explained
Pearland projects nearly $137.8 million in revenues and around $138.6 million in expenses for FY 2026-27, according to city documents.
The proposed budget includes a one-time $800,000 transfer from fund balance to the Motor Pool to fund vehicle and equipment needs, documents show.
Compared with FY 2025-26, the proposed budget represents an approximately 1.4% increase in revenues and a 2.8% increase in expenses, before accounting for the one-time transfer, which is not a recurring expense.
Year over year, property tax revenue is projected to increase by nearly 4.2%, while sales tax revenue is projected to increase by nearly 4.5%.
About 82% of projected revenue comes from sales and property taxes, and charges for services, documents show.
Employee payroll makes up approximately 70% of the proposed operating budget, or around $97 million, for FY 2026-27.
Stay tuned
City Council is scheduled to meet for a fourth budget workshop Aug. 24 ahead of FY 2026-27 budget and property tax rate adoption in September, according to city documents.
