As the City of Fulshear prepares its budget for Fiscal Year 2027, City Council is considering a proposed property tax rate of $0.193100 per $100 of taxable value to support the preliminary budget.

The proposed rate has not been adopted. The City will hold a public hearing on the proposed FY2027 budget on Tuesday, Sept. 1, 2026, at 6 p.m. at the Fulshear Municipal Complex, 6611 W. Cross Creek Bend Lane. Residents are encouraged to review the proposed budget and provide feedback as part of the public process.

The proposed budget reflects the cost of providing services to a growing community, funding the City's debt obligations and advancing priorities and investments that have been approved by City Council and Fulshear voters.

What is the proposed tax rate?

•  The proposed FY2027 property tax rate is $0.193100 per $100 of taxable value. The current FY2026 adopted rate is $0.167903.

What could the proposed rate mean for a Fulshear homeowner?

•  The City's Taxpayer Impact Statement provides an example using a median-valued homestead. For FY2026, the median taxable value used in the statement is $483,136. At the current $0.167903 tax rate, the estimated annual City property tax bill is $811.20. For FY2027, the median taxable homestead value is $492,498. At the proposed $0.193100 rate, the estimated annual City property tax bill would be $951.01.
  • That is an estimated difference of $139.81 per year, or approximately $11.65 per month.
• These examples are intended to illustrate the potential impact of the proposed rate. An individual property owner's actual City tax bill will depend on the property's taxable value and applicable exemptions.

Why is the City considering the proposed rate?

• The $0.193100 rate was identified during the budget process as the rate needed to support the preliminary FY2027 budget while fully funding the City's debt-service obligations.

• At the proposed rate, the City estimates approximately $11.07 million in total property tax revenue. Of that amount, approximately $7.25 million would support the General Fund, or maintenance and operations, while approximately $3.83 million would support the Debt Service Fund.
• The proposed rate provides approximately $235,000 in property tax revenue for the General Fund above the preliminary need identified during the budget process.
• The preliminary budget also projects an operating surplus of approximately $576,000 before transfers and maintains General Fund reserves above the City's 25% policy target. The rate was presented as providing additional flexibility for revenue and expenditure changes as well as potential Council-directed strategic priorities.

How does the 2025 voter-approved bond fit into the proposed budget?

•  One component of the City's debt-service obligations in FY2027 is associated with the General Obligation Bond Program approved by Fulshear voters in May 2025.
  • Voters approved two propositions totaling $13.5 million for parks and parkland:
    Proposition A authorized $10.75 million for Primrose Park Phase 3.
    Proposition B authorized $2.75 million for the acquisition of land for future parks and green space.
• Following voter approval, the City moved forward with financing the projects. The FY2027 proposed budget now includes principal and interest payments associated with the voter-approved General Obligation debt.
• The proposed Debt Service Fund includes approximately $828,933 in FY2027 principal and interest associated with these General Obligation bond obligations.
• The voter-approved bond is therefore one component of the City's overall debt-service requirement reflected in the proposed FY2027 tax rate.

What has happened with the voter-approved bond projects?

•  The bond program has continued moving forward since voters approved it in May 2025.
• Design work continues on Primrose Park Phase 3. The project was previously anticipated to be issued for bid in spring 2026. As design work has progressed, the anticipated schedule has been adjusted, and the City is now planning to issue the project for bid in fall 2026.
• The City has also moved forward with the parkland acquisition portion of the bond program.
  • In 2026, the City purchased approximately 4.14 acres from Living Word Lutheran Church – Katy. The property is adjacent to Primrose Park along Dixon Road and was acquired for $1.5 million to expand the park and support future public park development.
• The City's proposed budget reflects the progress of both initiatives. The Regional Park Fund identifies Primrose Park Phase 3 and parkland acquisition as General Obligation Bond projects. The budget reflects $1.5 million in projected 2026 spending for parkland acquisition, with additional funding available for future acquisition, while funding for Primrose Park Phase 3 remains programmed as the project moves toward construction.

The budget also reflects another voter decision

•  The 2025 GO Bond is not the only recent voter decision reflected in the proposed FY2027 budget. In May 2026, Fulshear voters approved a proposition reallocating 0.25% of the City's existing local sales tax from the Type A Economic Development Corporation to the City's General Fund. The measure did not increase Fulshear's overall local sales tax rate. Instead, it changed how a portion of the existing sales tax is allocated.
• The proposed FY2027 General Fund budget reflects approximately $6.22 million in sales and use tax revenue, including the additional voter-approved allocation from the Type A Economic Development Corporation.

Together, these items mean the proposed FY2027 budget begins reflecting the financial effects of two recent decisions made by Fulshear voters: the 2025 authorization of General Obligation Bonds for parks and parkland and the 2026 reallocation of existing sales tax revenue to the City's General Fund.

What else is included in the proposed FY2027 budget?

•  The proposed budget supports City services and operations across departments while also responding to Fulshear's continued growth. For example, the proposed Police Department budget totals approximately $6.71 million. The proposal includes personnel costs, equipment and technology, vehicle replacement costs and three new police vehicles with outfitting.
• The proposed Public Works budget totals approximately $2.45 million and includes funding for three additional employees as the City continues expanding its ability to maintain infrastructure, parks and other public assets.
• The Facilities and Parks budget is proposed at approximately $1.19 million, including funding for park supplies, maintenance, improvements and landscaping.
• The proposed budget also includes significant capital investments. Approximately $3.23 million would be transferred from the General Fund for capital projects, including transportation improvements, an operations facility, technology infrastructure and implementation of the City's Parks Master Plan.

What happens next?

The FY2027 budget and tax rate remain part of an ongoing public process. The City of Fulshear will hold a public hearing on the proposed FY2027 budget at 6 p.m. Tuesday, Sept. 1, 2026, at the Fulshear Municipal Complex, 6611 W. Cross Creek Bend Lane. Residents may attend the public hearing in person or submit written comments to the City for consideration by City Council. The proposed budget, taxpayer impact information and supporting financial documents are available for public review. Following the public hearing and consideration of public input, City Council will continue the required budget and tax-rate adoption process. Until that process is complete, the $0.193100 tax rate remains proposed and has not been adopted.

Residents are encouraged to review the information, ask questions and participate in the process as City Council considers the FY2027 budget.