Tomball officials are working through a proposed fiscal year 2026-27 budget that prioritizes the city’s day-to-day services while continuing several large water, wastewater and roadway projects.
City Council reviewed the proposal during budget workshops July 20 and July 22. The figures are still preliminary, and the council has not adopted the spending plan.
By the numbers
The updated proposed general fund budget includes approximately $43.06 million in revenue and $43.42 million in expenditures, leaving a planned gap of $369,099.
The city would cover that difference through its reserves or fund balance, which are projected to total approximately $35.88 million—or nearly 82% of annual expenditures—at the end of FY 2026-27.
City Manager David Esquivel said Tomball has historically budgeted conservatively, with revenues often coming in higher and expenditures lower than projected.
Sales tax remains the city’s largest general fund revenue source at approximately $19 million. The proposal also anticipates about $7.11 million in property tax revenue and $8.85 million from service fees.
Public safety represents the largest general fund expense at approximately $21.34 million, followed by $10.01 million for general government operations and $7.85 million for public works, per documents.
Staff built the proposal around roughly 5% growth in property tax revenue and 2% growth in sales tax collections. The budget also accounts for personnel costs, developer sales and property tax reimbursements, and the city’s agreement to provide fire services through Harris County Emergency Services District No. 15.
Diving in deeper
Tomball’s capital projects fund, which is separate from the city’s general fund, includes approximately $55.89 million in proposed spending.
More than $26 million is budgeted for sewer projects, while approximately $14.39 million is planned to be set aside for water infrastructure and $5.51 million for street projects. The city expects to begin the year with about $50.09 million in the fund and end with approximately $25.39 million.
Projects discussed by council include the South Wastewater Treatment Plant expansion, East Water Plant improvements, the FM 2920 lift station consolidation and utility work connected to the future reconstruction of Main Street. Staff said the lift station project is expected to be completed in FY 2026-27.
Other work includes the Hollrick elevated storage tank rehabilitation, Persimmon and Timkin street improvements, storm sewer projects and continued upgrades to the city’s water and wastewater monitoring system.
Also of note
Council took an initial step July 20 toward issuing up to $33 million in certificates of obligation for water and sewer improvements.
The proposed debt would help fund the South Wastewater Treatment Plant, East Water Plant and related professional services. The certificates could be repaid through property taxes and a limited pledge of water and sewer system revenue, with a maximum repayment period of 40 years.
The city estimates the combined principal and interest could total approximately $59.39 million based on an assumed 4.37% interest rate.
What’s next
Additional budget workshops are expected before the council holds public hearings on the budget and tax rate, with final approval slated for Sept. 21. Tomball’s new fiscal year begins Oct. 1.
