Fulshear council postpones FY2026 budget after tax-rate hearing; MUD rebate errors and police pay drive calls for workshop

The City of Fulshear City Council on Aug. 18 postponed formal adoption of the FY2026 operations and capital budget following a public hearing on a proposed tax-rate increase and wide-ranging public comment about city finances.

At the hearing the council read a proposed tax rate of $0.199901 per $100 valuation, the “no-new-revenue” rate of $0.154219 per $100 and the voter-approval rate of $0.189901 per $100. The city manager and finance staff presented budget details and said the proposed rate would raise more property tax revenue than the no-new-revenue rate. After public comment and council discussion, Councilmember Kanopy moved to postpone adoption of Ordinance No. 2025-15O7 (FY2026 operations and capital budget); the motion, seconded by Councilmember Powers, passed unanimously.

Why it matters: residents and several speakers told the council they want clearer, longer-term planning before approving higher taxes. Multiple speakers — including residents and a commercial broker — urged greater commercial development to broaden the tax base. Council and staff said two issues in particular have driven concern: a newly identified shortfall caused by an underpayment tied to municipal utility district (MUD) rebates, and urgent requests for higher police pay and increased preventative street…