Tomball staff outline FY2027 budget and $33 million debt plan, say tax rate unaffected

City staff presented the proposed Fiscal Year 2027 budget at a July 20 workshop and regular meeting of the Tomball City Council, describing revenue assumptions, capital needs and a plan to issue $33,000,000 in debt to complete several major projects.

"That $33,000,000 issuance is going to be scheduled to be able to complete those projects," Staff said, listing two water wells, the East Water plant expansion, completion of the wastewater treatment plant and a gravity line to eliminate the 2920 lift station. Staff said the combined issuance is structured to avoid increasing the city's tax rate. The council was told the budget uses Harris County's certified tax-roll estimates and that any adjustments after certification (expected July 25) will be reflected before adoption.

Staff described FY2026 as a positive year, with revenues exceeding original conservative budgets. For FY2027, staff used a 2% sales-tax growth assumption and a 6% ad valorem growth assumption. The proposed budget includes seven full-time positions across funds, but staff emphasized that some of those positions are reimbursed by Emergency Service Districts (ESDs), which reduces direct city general-fund impact.

Council members pressed staff for clearer presentation of which hires are city-funded versus reimbursed and asked that budget documents make reimbursements and fund-source details explicit to avoid misleading readers about the number of new city-paid FTEs. Staff agreed to present a fund-by-fund breakdown in future material.

The council approved a resolution to begin the public-notice process for issuing certificates of obligation for the debt proposal; the vote to publish intent to issue the debt was 5–0. The budget will return to council in additional workshops (July 22) and a public hearing is set for Aug. 3 at 6 p.m. in council chambers.