Mayor Whitmire and City Council Pass FY 2027 Budget

Mayor Whitmire and City Council Pass FY 2027 Budget

"Houston is stronger today because of this budget."

Houston, TX - June 10, 2026 - Today, the Houston City Council voted 15-1, with one councilmember absent, to approve Mayor John Whitmire's Fiscal Year 2027 budget. The $7.5 billion budget strengthens the City's financial future and protects public safety without raising taxes or deferring infrastructure obligations.

These changes align Houston with national best practices, reflect the real cost of delivering services, and help ensure long-term fiscal stability.

"We have a lot of work to do, but today is a proud moment. Houston is stronger today because of this budget and the leadership exhibited around the horseshoe (city council) and many city departments, but I can't say enough about the community. We had over 90 briefings in every corner of the city, received letters of support from over 90 groups, and the council vote speaks for itself," said Mayor Whitmire. "The budget lays the foundation for the City of Houston to be on a sound financial footing in the future. Certainly, it is not the final solution, but this budget addresses our basic services, finances, public safety, drainage, and solid waste (trash/recycling collection) without raising taxes."

The budget plan:

• Designates the Solid Waste Municipal Department as a Municipal Utility and moves it into the combined utility system under Houston Public Works.
• Implements a $5 per month administrative user fee to align with the actual cost of service and to support long-term fleet, staff, and reliability (Customers will notice the fee beginning with the August water bill)

Right-of-Way Rental Fee through the Combined Utility System:

• Implements a fee on water and wastewater utilities for use of public right-of-way, similar to a franchise fee.
• The ROW fee benefits help preserve public safety, libraries, parks, municipal courts, and multi-service centers.

The changes move the city closer to a structurally balanced budget that:

• Supports transformational public works and consent decrees
• Reduces pressure for layoffs and service cuts
• Both are standard practices in major cities, align costs with service, and support a structural budget balance

"Houston is headed in the right direction, and we'll build on this. We'll continue to collaborate with all levels of government. There's no question that, as we move forward with the growth we're experiencing, we've got to strengthen partnerships with the state and federal governments. And, I certainly want to thank our county leaders," said Mayor Whitmire.

Budget Priorities/Key Investments include:

• All services preserved
• No layoffs
• $12M in efficiency savings achieved without service reductions
• Five police and 11 fire cadet classes
• $31M added to the drainage fund from the general fund
• The new fiscal year begins July 1, 2026

View FY 27 Budget details.