FULSHEAR, Texas (CoveringKaty.com) — The city of Fulshear has launched a Business Retention and Expansion Program aimed at helping existing businesses remain and expand in the city as sales tax revenue grows and officials seek to broaden the city's tax base.
The Business Retention and Expansion Program will include 20 to 30 visits with local businesses each year, or about two to three per month, according to the city.
Economic development staff will meet with business owners and leaders to discuss business conditions, workforce and infrastructure needs, expansion plans, grant opportunities and other issues that could affect their operations.
“Our local businesses are the heartbeat of our community, and the formalizing of a Business Retention and Expansion Program will help ensure that the lines of communication are open and that our businesses know we are here to support them,” Economic Development Director Annel Guadalupe said.
Sales tax revenue has grown
The program comes as sales tax revenue plays an increasingly important role in Fulshear's finances.
General Fund sales and use tax revenue increased from about $3.6 million in 2023 to nearly $4.5 million in 2025, an increase of about 25% in two years, according to city budget documents reviewed by Covering Katy News.
Fulshear's economic development policy calls for strengthening the city's commercial tax base to complement its residential tax base. That means increasing the share of city revenue generated by businesses so Fulshear does not rely as heavily on residential property taxes.
City documents also show that where commercial development occurs can affect how much sales tax revenue Fulshear receives. Businesses inside the city limits generally provide greater ongoing sales tax benefits to the city's General Fund, while reimbursement agreements and special taxing districts can affect how much revenue the city retains.
The new retention program focuses on businesses that have already invested in Fulshear.
“The businesses that have already chosen to invest in Fulshear are a critical part of our community and our continued economic success,” Fulshear Development Corporation President Blake Koepke said. “This program gives us an opportunity to be more intentional about building relationships with these businesses, understanding the challenges they face and connecting them with the resources they need to grow and succeed.”
Program includes large and small businesses
Visits will include major employers as well as retailers, restaurants, service businesses and other small businesses.
The city said the conversations are intended to help officials identify problems that could affect whether a business remains in Fulshear or expands its operations.
Economic development staff can also connect businesses with resources and assistance programs.
Among those resources is Fulshear's Small Business Grant Program, which can reimburse eligible businesses for up to 50% of qualifying project costs, with grants capped at $10,000.
Businesses can request a visit from the city's Economic Development team.
Want to know what’s changing in Fulshear before it affects your neighborhood? Covering Katy goes beyond announcements to explain the growth, development and government decisions shaping the Fulshear area. Subscribe today and support local reporting that keeps you informed.