City of Pearland reviews FY2026 capital improvement plan, projects and water/sewer rate outlook

City of Pearland staff presented an updated five-year capital improvement plan (CIP) and preliminary debt- and rate-models at a special council workshop Monday, June 23, outlining projects scheduled for design or construction in fiscal year 2026 and potential effects on the city’s debt-service tax rate and water and sewer rates.

The presentation covered ongoing and planned drainage, facilities, parks and streets work funded primarily by the voter-approved 2023 bond election, General Land Office funding, Pearland Economic Development Corporation (PEDC) contributions and other sources. "This will be the first budget-related workshop as we move into budget season," Trent, a city staff member, told the council as he introduced the general fund portion of the CIP. Rachel Winslow, a city staff member, presented the debt-service and enterprise-fund rate models.

Why it matters: The CIP and related debt sales determine near-term tax-rate pressure and enterprise debt service that affect water and sewer rates. Winslow said the current model reflects a flat debt-service rate of 30¢ for FY 2026 and noted the FY 2026 debt sale will affect the FY 2027 debt-service rate. On the enterprise side, staff reported the city must meet bond-coverage and reserve targets; the model showed enterprise debt service rising from about $38 million in FY 2025 to roughly $44.2 million in FY 2026 because of recent and planned debt sales.

Most important facts

- Ongoing and planned projects: Staff highlighted drainage projects funded by the 2023 bond program (Veterans Drainage, Longwood Park, Shadow Creek Ranch drainage, among others), GLO funding for specified drainage locations, facility work including the Hill House…