Galveston approves FY2027 budget and 2026 property tax rate

Galveston City Council approved the FY2027 budget and adopted a no-new-revenue property tax rate ahead of the fiscal year beginning Oct. 1.

The Galveston City Council has approved the City’s Fiscal Year 2027 budget and adopted the 2026 property tax rate ahead of the new fiscal year beginning Oct. 1, 2026.

The budget uses a no-new-revenue tax rate of $0.416273 per $100 of property valuation. Under Texas law, that rate is calculated to generate the same ad valorem tax revenue as the previous year from properties taxed in both years.

The FY2027 budget includes approximately $250.1 million in operating funds for public services and municipal operations. Funding priorities include police, fire and emergency services, along with public works and infrastructure responsibilities such as streets, drainage, water and wastewater systems, sanitation and parks.

The City also approved a five-year Capital Improvement Plan totaling approximately $347.8 million in identified projects. The projects are supported through a combination of available revenues, dedicated funds, grants, bonds and other applicable sources.

The budget projects approximately $84.7 million in ending fund balances across all City funds. Within the General Fund, the City projects approximately 115.9 days of fund balance at the end of the fiscal year.

Those balances are intended to help Galveston manage seasonal cash-flow fluctuations, respond to emergencies and disasters, and maintain financial capacity for essential services and future borrowing. The City’s finances experience significant seasonal fluctuations, making adequate fund balances an important part of the adopted financial framework.

“Our responsibility is to provide the services our residents depend on, invest in the infrastructure and public safety needs of our community, and maintain the financial capacity to respond to challenges in the years ahead, and this budget reflects that approach,” City Manager Brian Maxwell said.

Galveston’s fiscal year runs from Oct. 1 through Sept. 30. The City makes its budget, tax-rate documents and other financial information available through its Financial Transparency webpage.