Pearland Budget Vote: Lower Tax Rate, Higher Utility Bills

Pearland Budget Vote: Lower Tax Rate, Higher Utility BillsPearland's City Council has taken the first step toward approving a $137.8 million budget for the 2026-27 fiscal year. Council members voted unanimously on September 14 to approve the plan, along with a new property tax rate of $0.627892 per $100 of a home's value. That's slightly lower than last year's rate. For a home worth about $380,000, this works out to roughly $2,385 in yearly property taxes. Compared to the current year, the new budget spends and brings in about 4% more money.The budget isn't just about taxes, it also affects monthly utility bills. Council approved a 9.9% increase in utility rates, which will raise the average bill by about $11 a month. City officials say this money is needed to pay for $524 million worth of water and infrastructure projects meant to keep up with regulations, population growth, and aging equipment. The budget also sets aside $2 million for employee raises, including a 4% pay bump for police and fire personnel. In fact, salaries and benefits make up nearly 71% of the entire budget.This vote was only the first of two required steps. The City Council still needs to hold a final vote to officially adopt both the budget and the tax rate, which is expected to happen at their September 28 meeting.