Fulshear's new $21.14 million general fund budget projects a $322,917 surplus and steers $3.13 million into one-time capital improvements across the city.
The Fulshear City Council approved the Fiscal Year 2026-27 budget in a 5-2 vote on Tuesday, Sept. 1, the same meeting where members adopted a 13.49% property tax rate increase we reported Thursday, Sept. 3. The budget takes effect Oct. 1 and runs through Sept. 30, 2027.
General fund revenues are set at $21.14 million against $20.81 million in expenditures, according to Community Impact. The $3.13 million in capital improvement plan spending covers facilities, parks, technology, streets and transportation, though the city has not released a line-item breakdown by category.
The budget will raise $1,411,547 more in property tax revenue than last year's budget, a 15.01% increase, according to the city's budget ordinance. Of that increase, $45,413 comes from new property added to the tax roll.
Downtown land purchase splits council
The sharpest debate centered on a downtown land purchase included among the budget's operational projects, alongside city hall building repairs and shade structures for Eagle Landing Park.
City Manager Zach Goodlander said it would be more efficient to use the general fund to pay for the operational projects. Council Member Abhijeet Utturkar disagreed.
"I'm not on board with the downtown land purchase bringing into the city's budget," Utturkar said. "There's no need to do that when there is alternate funding."
Utturkar wanted staff to explore the Economic Development Corporation (EDC) as an alternative funding source. Assistant City Manager Kelsee Lee said the EDC's budget had already been approved before council considered it as a funding option, but a partnership on the downtown area could still happen.
Mayor Pro Tem Sarah B. Johnson, who voted for the budget, said the purchase reflects what residents want. She said residents have been asking for opportunities to make downtown unique and turn Fulshear into a cultural hub.
Utturkar and at-large Council Member Camron Miller cast the two dissenting votes. Johnson, Omar Pena, Richard Russell, Randy Connor and Kimberly Bow voted in favor. No residents spoke during the budget or tax rate public hearings, though resident Bill Clifford addressed council during citizen comments earlier in the meeting to express support for a tax increase, according to My Neighborhood News.
Slowing growth shapes the fiscal picture
The budget comes as Fulshear's new taxable property value dropped from $375 million to $180.2 million in the past year. Finance Director Angela Alvarado told council at an Aug. 18 meeting that the slowdown is already visible. "New growth will significantly slow down in the coming years and we're kind of seeing that now," Alvarado said at the time, according to Community Impact.
The adopted tax rate of $0.1905 per $100 of taxable value sits about 19.4% above the city's no-new-revenue rate of $0.159522 but remains below the voter-approval rate of $0.204901. For a homeowner with the average 2026 taxable value of $527,823, the city portion of the annual property tax bill rises roughly $119 to about $1,005.50.
The FY 2026-27 budget was adopted under Ordinance No. 2026-1554.
