Fulshear homeowners will pay about $119 more per year in city property taxes starting Oct. 1. Most of the additional revenue covers voter-approved park bonds, police pay and a gap left by slowing development.
City Council voted 5-2 on Sept. 1 to adopt a fiscal year 2027 (FY2027) tax rate of $0.1905 per $100 of taxable value, roughly 13.5% above the current $0.167903 rate, according to My Neighborhood News. The new rate takes effect when the fiscal year begins Oct. 1.
The budget projects about $11.07 million in total property tax revenue, according to city budget documents. Of that, approximately $7.25 million supports the General Fund and $3.83 million covers debt service.
Where the money goes
The single largest new cost is debt on $13.5 million in park bonds Fulshear voters approved in May 2025. The FY2027 budget sets aside roughly $828,933 in principal and interest for those bonds, which fund Primrose Park Phase 3 and future parkland. Design work on Phase 3 continues, with bids now expected in fall 2026.
The city also paid $1.5 million in 2026 to buy about 4.14 acres from Living Word Lutheran Church – Katy, expanding the Primrose Park site along Dixon Road.
Police get the next biggest share of new spending. The proposed Police Department budget totals about $6.71 million, including an $800,000 market pay adjustment funded by a voter-approved sales tax reallocation and three new patrol vehicles.
Public Works grows to roughly $2.45 million, adding three employees to maintain roads, parks and infrastructure. The Facilities and Parks budget is about $1.19 million for landscaping, maintenance and supplies. Another $3.23 million transfers from the General Fund to capital projects covering transportation, an operations facility, technology and the city's Parks Master Plan.
What drove the increase
Development revenue is falling.
New taxable property dropped from about $375 million to $180.2 million. License and permit revenue is projected at $2.11 million, down about $548,670 from FY2026. Service fees for plan reviews and subdivisions fell roughly $321,690, and General Fund transfers dropped about $588,666.
Finance Director Angela Alvarado warned of the slowdown at the Aug. 19 council meeting. "New growth will significantly slow down in the coming years and we're kind of seeing that now," she said, as Community Impact reported.
In May 2026, voters approved shifting 0.25% of the city's existing sales tax from the economic development corporation to the General Fund. That move brings in roughly $1.2 million, with about $800,000 earmarked for police and $400,000 for parks, drainage and other priorities.
The vote and what's ahead
Mayor Pro Tem Sarah Johnson, Omar Pena, Richard Russell, Randy Connor and Kimberly Bow voted yes. Camron Miller and Abhijeet Utturkar voted no. Neither offered a public explanation for their votes at the meeting, according to available records.
On a home with the average 2026 taxable value of $527,823, the city tax bill rises from about $886 to roughly $1,006. That works out to about $9.94 more per month. The adopted rate still sits below Fulshear's $0.204901 voter-approval ceiling.
Resident Bill Clifford spoke during citizen comments at the Sept. 1 meeting in support of the increase, pointing to moderating growth and the city's history of cutting its rate in prior years. No residents spoke during the formal public hearings on the budget or tax rate.
The budget projects an operating surplus of about $576,000 before transfers and keeps General Fund reserves above the city's 25% policy target.
