Pearland City Council met on September 14 and unanimously approved the first reading of the fiscal year 2026‑27 budget. The balanced budget totals approximately $137.8 million in both projected revenues and expenses, reflecting a modest increase of nearly 4 % over the prior year.
Property tax rate adjustment
The council set the property tax rate at $0.627892 per $100 of assessed home value. This rate is about 0.3 % lower than the $0.63 rate used for FY 2025‑26. For a typical home valued at $379,925, the annual property tax bill would be roughly $2,385.
The tax rate is divided into two components: $0.351681 per $100 for maintenance and operations (M&O), which funds daily city services, and $0.276211 per $100 for debt service, which primarily supports capital improvement projects.
Utility rate increase
In addition to the property tax decision, the council approved a 9.9 % increase in utility rates. The change is expected to raise the average monthly utility bill by about $11.31. The increase in utility debt service is tied to $524 million in capital projects aimed at meeting regulatory requirements, accommodating growth, and addressing aging infrastructure.
Salary adjustments and staffing costs
The budget includes $2 million earmarked for employee salary adjustments, including a 4 % raise for civil service officers. Salaries and benefits together represent nearly 71 % of the total FY 2026‑27 budget, underscoring the city’s commitment to maintaining a well‑compensated public workforce.
Next steps
City Council will consider the second and final readings of the budget and the tax rate at its September 28 meeting. If approved, the budget will guide Pearland’s operations, capital projects, and service delivery for the upcoming fiscal year.
What this means for residents
Homeowners can expect a slightly lower property tax bill compared with last year, while utility customers will see a modest increase in monthly charges. The balanced budget and targeted salary adjustments aim to sustain essential city services and continue investment in infrastructure improvements that support Pearland’s growth.
Original reporting: Community Impact — Houston — read the source article.
