Missouri City adopts $257.6 million FY2026 budget, holds property tax rate at $0.570825

Missouri City Council on first and final reading adopted the city’s fiscal year 2026 budget and approved a property tax rate of $0.570825 per $100 of taxable value.

The adopted budget totals $257,600,000 across all funds and maintains the property tax rate used the previous two years. Council members voted unanimously on the budget ordinance and separate votes to set the debt and maintenance & operations components of the tax rate and to adopt the combined tax ordinance.

City Manager Angel Jones opened staff discussion of the proposed plan and staff priorities: a five-year budget horizon, priority-based budgeting, and a property-tax rate held at 0.570825. Interim Chief Financial Officer Bertha Alexander presented details: total revenue of $257.6 million, the general fund at $95.7 million, utility revenues of $69.9 million and capital-project spending projected through September 2030. Alexander said property taxes remain the largest single revenue source at 31.8 percent of total revenue and that one penny of the tax rate produces roughly $1.1 million for the city (about $1,000,000 from Fort Bend County and $67,000 from Harris County in the staff estimate).

The adopted budget adds 65 positions net (4-65 in staff remarks was presented as 465 total positions citywide), includes seven new firefighter positions, and dedicates more than $11.2 million to streets, sidewalks and infrastructure. The plan also programs $4 million for flood system upgrades, $5.2 million for parks (including $4 million for Stamo Park and $2 million for ADA), $10.1 million for water and wastewater, and roughly $7 million in Metro funding and $18.9 million in bond funding for roadway improvements. Staff said a 5% budget reduction exercise was used to reallocate priorities and that vacant positions were evaluated before funding.

During the public hearing resident Guy Sulloway urged a more adversarial budget review and questioned the city’s trajectory of staffing growth, noting the budget adds positions and that recruiting/retention pressures risk recurring cost growth. Council members pressed staff on vacancy management, the treatment of vacant positions in the personnel budget (vacant positions budgeted at midpoint and health insurance anticipated at family coverage), contractor use to fill gaps, and the mix of recurring versus one-time funding. Alexander said some grants fund firefighter positions and that staff is using a five-year plan to prepare for the end of grant funding.

Council members discussed deferred property taxes, the LGC/golf course fund, and economic development expenditures. Several council members praised staff for holding the overall rate steady while funding public safety and infrastructure. Council Member Boney moved and the council unanimously approved the budget ordinance, the revenue ratification required under state law, and each component of the tax rate (debt service 0.115796 and maintenance & operations 0.455029) before adopting the combined tax ordinance.

The budget and tax-rate ordinances take effect as provided in the documents adopted by council; staff will post the adopted budget and the five-year capital program online and return with follow-up items noted in council questions.