Pearland City Council unanimously approved the first reading to adopt a $137.8 million budget and a $0.627892 tax rate per $100 valuation of a home for fiscal year 2026-27 at its Sept. 14 meeting.
Compared with FY 2025-26, the proposed budget represents a nearly 4% increase in both revenues and expenses, city documents show.
What residents need to know
The city approved a property tax rate of $0.627892 per $100 valuation of a home, which is nearly 0.3% lower than last year’s rate of $0.63 per $100 valuation of a home.
For a property with a taxable value of $379,925, the annual property tax bill is around $2,385, city documents show.
The rate includes $0.351681 for maintenance and operations, or M&O, which funds daily operations, and $0.276211 for debt service, which primarily funds capital improvement projects.
Also of note
City Council also approved a 9.9% utility rate increase, which brings the average monthly bill up by about $11.31, city documents show.
The increase in utility debt service stems from $524 million in capital projects to “meet regulatory requirements, growth and aging assets,” according to previous reporting from Community Impact.
Budget explained
The FY 2026-27 budget is balanced and includes approximately $137.8 million each in expenses and revenue, according to city documents.
The budget also reflects $2 million for employee salary adjustments, including a 4% raise for civil service officers, as previously reported by Community Impact.
Salaries and benefits represent nearly 71% of the total FY 2026-27 budget, documents show.
Looking ahead
City Council will vote on the second and final readings of the budget and the tax rate at its Sept. 28 meeting, according to city documents.