Fulshear Development Corporation approves FY 2026 administrative services agreement and budget; declares $766,667 in projects

The Fulshear Development Corporation on Monday, July 21, 2025, approved its fiscal year 2026 administrative services agreement with the city and adopted the corporation's FY26 budget, voting to declare $766,667 in projects that include a $600,000 allocation for the Katy'Fulshear lift station expansion.

The approvals came during the board's regular 6 p.m. meeting, which also included votes to accept the minutes of the June 30, 2025 meeting and to pay $9,486.59 in May payables to the City of Fulshear.

Why it matters: The budget and the projects list set the Development Corporation's priorities for the year, including funding for downtown promotions and community events, continued support for the Fulshear Fast Track entrepreneurship program and capital projects that affect commercial build-out in the city.

Votes at a glance

- Motion to approve the minutes of the June 30, 2025 meeting: motion carried. - Motion to approve payables and payment to the city of $9,486.59 (period ending 05/31/2025): motion carried. - Motion to approve the FY26 Administrative Services Agreement (ASA) between the Fulshear Development Corporation and the City of Fulshear: motion carried. - Motion to approve the FY26 budgets for account 70701: motion carried (the board recorded one dissenting vote). - Motion to approve FDC Resolution 2025-05 declaring FY26 projects and setting a public hearing: motion carried.

What the board approved and key budget details

Staff reported that May collections (reported in July'period information) showed continued sales tax growth: "Our revenues for July, the May collections were up 11.44 from the same period the previous year, at $170,145.41," said Hayden, a staff member presenting the financials. The corporation's cumulative revenues were given as $1,454,098.99, described in the packet as roughly 71.5% of the annual budget at about 66% of the fiscal year.

The ASA for FY26 retains the existing shared-services structure but replaces a prior single-line city manager allocation with breakdowns by specific job titles and percent allocations. Staff said the shared services changes increased personnel costs by roughly $4,800 per board, and that telecommunications previously listed separately is now included in shared services.

Personnel and operating line items noted by staff include a 2% cost-of-living adjustment and step increases for eligible city positions, reclassification of a coordinator position to "economic development manager," a travel and training line set at $20,000 (including attendance at ICSC and other conferences), and promotional expenses budgeted at $50,000 per corporation (calculated as 10% over projected sales tax collections).

Declared FY26 projects and funding

Resolution FDC 2025-05, approved by the board, lists the corporation's declared projects for FY26 and directs staff to publish notice and set a public hearing. Staff listed the declared projects in the meeting as:

- Katy'Fulshear lift station expansion: up to $600,000 (board-approved last month) - Harris Street sanitary expansion: full amount budgeted (discussed as $478,000 in the meeting packet) - Community events: $50,000 - Fulshear Business and Entrepreneurship Hub (Fulshear Fast Track option 4): $25,000 per board

Staff summarized the total declared project amount for the budget cycle as $766,667.

Discussion highlights and staff responses

Board members asked about membership and dues levels for outside economic-development organizations, and several members asked that staff provide more regular reporting on events and membership activity so the board can evaluate return on investment. Staff said the board and staff could adjust membership levels within the budgeted line item if the board requested that.

On the entrepreneurship program, staff said the Fulshear Fast Track contract remains in place through December and that staff plan to scale some larger events until a follow-on program design is finalized. "It's still very much in flux right now," staff said, noting an advisory-board meeting was scheduled the day after the FDC meeting.

Legal and governance clarification

During discussion one speaker identified as legal counsel reminded the board that, under the attorney general's guidance, the city cannot dictate how the corporation spends its funds. "They're welcome to disapprove the budget when we send it but they don't get to dictate how the board allocates its money," the counsel said.

Other agenda items mentioned

Staff presented updates on retail recruitment work with the city's retail strategies consultant and said staff will distribute a redacted list of consultant conversations participants for transparency. Staff also reported the city had received a permit from TxDOT for the east-side drainage connection on the Harris Street project and that work on conduits and road subgrade had progressed.

Ending / next steps

The board set a public hearing on the declared FY26 projects at its next regular meeting. Staff said they would circulate more detailed retail-recruitment materials, provide ongoing event metrics where available, and return with additional CIP schedule and cost detail for the Harris Street project. Staff also announced that economic development staff member Anelle is on leave following a July 4 birth and is expected back in mid-September.