Fulshear releases preliminary FY 2026 budget; streets, police pay and utilities drive difficult trade-offs

City staff presented the preliminary fiscal year 2026 operating and capital budget to the Fulshear City Council on July 1, 2025, and council members directed staff to return with options for funding key priorities including pavement management, police pay competitiveness and utility operations.

Budget staff framed the city’s options as trade‑offs: keep the current low tax rate and defer or reduce capital and maintenance programs, or increase revenue (including the possibility of a voter‑approved tax measure) to fund proactive pavement management, public‑safety compensation and other services. The presentation included high‑level fund projections, requests for new positions and capital projects that staff said could not be fully funded at the current revenue assumptions.

“Mickey Mahoney, the city’s budget manager, presented the highlights and timeline for FY 2026, noting the city’s fund balances and the need to prioritize,” staff said. The presentation showed the general fund in a healthy position by common benchmarks but flagged a long‑term mismatch between the city’s current tax rate and the recurring costs of streets and services as the…