FULSHEAR, Texas (Covering Katy News) — The Fulshear City Council decided Monday not to call an election on a proposed tax rate increase, instead opting to develop a long-term financial strategy.
The council postponed adoption of its fiscal year 2025-26 budget and tax rate during its Aug. 18 meeting, missing the deadline to place the proposed $0.199901 per $100 property valuation tax rate on the ballot.
The proposed increase would have raised the average annual tax bill by $190 for homes valued at $500,000. Council members said they wanted more time to create a comprehensive plan rather than implement what they viewed as a temporary solution to the growing expenses they face.
"What we need to do is have this comprehensive plan," council member Cameron Miller said. "How can we, given the situation we're in, fast growing city, attract and retain the best people to bring on and keep our city safe?"
City Manager Zach Goodlander said the tax increase was proposed to fund road maintenance and competitive salaries for law enforcement officers. Regional competition for police officers has driven up personnel costs as agencies across the area continue raising officer pay.
"My suggestion was to look at it more comprehensively and over the next several years," Goodlander said. "Where are we going and how are we going to pay for it?"
Miller emphasized the need for a strategic approach to municipal finances.
"I think we need to get our ducks in a row," he said. "We need to better understand where we're at and why we're having the issues that we're having, and I don't think it's a quick fix. I think it's taking a step back. Let's be strategic and deliberate and prepared to make these suggestions, especially when it comes down to taxpayer dollars—it's a big deal and we got to get this right."
The council will now determine a tax rate no higher than the voter approval rate of $0.189901 per $100 valuation. Last year, the city decreased its tax rate by 4.09% to $0.161856 per $100 property valuation.
Fulshear's current rate remains significantly lower than neighboring municipalities.
The council plans to schedule budget workshops to finalize the tax rate and budget before the Sept. 30 approval deadline. The new budget takes effect Oct. 1.
Fiscal Year 2024-25 Tax Rates
Covering Katy
Local property taxes
Here are the tax rates for each local entity, broken down by Interest & Sinking Tax Rate and Maintenance & Operations Tax Rate:
Fulshear - Total: 0.1416%
- Interest & Sinking: 0.0200%
- Maintenance & Operations: 0.1216%
Rosenberg - Total: 0.3200%
- Interest & Sinking: 0.1230%
- Maintenance & Operations: 0.1970%
Sugar Land - Total: 0.3532%
- Interest & Sinking: 0.1460%
- Maintenance & Operations: 0.2072%
Richmond - Total: 0.6368%
- Interest & Sinking: 0.2520%
- Maintenance & Operations: 0.3848%
Katy - Total: 0.4250%
- Interest & Sinking: 0.0542%
- Maintenance & Operations: 0.3708%