Fulshear board pledges up to $600,000 for Katy‑Fulshear lift‑station expansion, condition tied to A board funding of Harris Street sewer

The Fulshear Development Corporation (B board) voted on June 16 to commit up to $600,000 toward the Katy‑Fulshear lift‑station expansion, subject to staff verification that the project aligns with the board’s economic development mission and noting that the Type A EDC had already agreed to fund a portion of the Harris Street sanitary sewer work.

The vote capped an extended discussion in which Cliff Bruhard, interim director of public works, presented three capital improvement projects staff recommended the board consider funding for fiscal year 2026: (1) a change order upsizing sanitary sewer on Harris Street, (2) on‑site and off‑site well work at the Pecan Knoll water plant, and (3) the Katy‑Fulshear lift‑station expansion and associated force main and sanitary extensions. Bruhard said the Harris Street sanitary upsizing was inserted into the ongoing Harris Street reconstruction to avoid re‑opening a newly rebuilt roadway and that the work is already under construction as a change order.

Why this matters: board members said they want to prioritize projects that directly support downtown and commercial growth. The lift‑station expansion increases wastewater capacity for areas identified for commercial use and is easier to apportion to commercial benefit than the interconnected Pecan Knoll water projects, staff said. The board’s action provides a near‑term funding allocation the city can include when drafting the FY‑26 budget to be considered by council next month.

Key details from the presentation and debate: Bruhard gave the following estimates and schedule details (as presented to the board): the Harris Street sanitary change order was identified at about $478,000.21; the Pecan Knoll wells and improvements had an estimated construction cost of $3,690,000 with a 10% contingency (total estimate $4,059,000) and design started in February 2025 with anticipated construction start January 2026 and completion January 2027; the Katy‑Fulshear lift‑station expansion carried an estimated construction cost of $3,383,000 with a $338,300 contingency for a total estimated project budget of $3,721,300, design started October 2024, bid start estimated January 2026, and construction start estimated March 2026 with completion June 2027. Bruhard noted the lift‑station schedule is contingent on Texas Department of Transportation (TxDOT) review and a right‑of‑use permit for an 8‑inch force main in the FM‑1093 ROW.

Board members pressed staff on commercial vs. residential apportionment for projects. Bruhard and staff said the Type A EDC and the city’s engineers would need to calculate the percentage of a project that directly benefits commercial, sales‑tax‑producing uses; that calculation is feasible for the regional lift station (because its service area is definable) but is more complex for the Pecan Knoll site because the water system is interconnected across multiple service areas. Board members discussed using a “not to exceed” dollar amount that would later be adjusted to the commercial share once engineers provide a breakdown.

Fund availability and coordinating commitments: staff reported the B board’s current fund balance available for new commitments was a little over $3,000,000. Board members noted the Type A EDC had already expressed willingness to fund the Harris Street sanitary work at either 50% (as presented for budget purposes) or potentially 100% if the A board amends its budget; that commitment influenced several members’ preference to match or otherwise coordinate funding. Board member Lee O’Brien moved the $600,000 not‑to‑exceed contribution for the Katy‑Fulshear lift‑station expansion on the assumption the Type A board would cover the Harris Street sanitary cost; the motion was seconded and carried without recorded roll‑call names (motion made by Lee O’Brien; seconded by Anelle, staff). Board members instructed staff to ensure any reimbursement or allocation conforms to the board’s statutory limits on EDC expenditures and to return documentation showing the portion eligible as commercial economic development before disbursing funds beyond the not‑to‑exceed placeholder.

Implementation considerations and risks: the board noted schedule and permit risks (TxDOT right‑of‑use), the need for engineers to calculate the commercial percentage before final reimbursements, and the potential for contingency draws on later phases (Pecan Knoll off‑site wells). Several members also asked for improved project reporting (milestones, schedule status, recovery plans and a simple traffic‑light dashboard) for any projects the board funds or co‑funds.

What’s next: staff will include the $600,000 not‑to‑exceed allocation in the board’s proposed FY‑26 budget materials to present to city council, and will obtain a commercial‑benefit breakdown from engineers for projects where the apportionment matters before final reimbursements are made. The Type A EDC’s final budget decisions will also affect how much the city or B board will be asked to contribute toward Harris Street.