The Fulshear City Council convened on July 15, 2025, to discuss various financial matters, including budget allocations, employee compensation, and infrastructure projects. The meeting began with an overview of estimated costs for three significant projects: a 16-inch waterline on FM 10 93, estimated at $1,633,500, and the expansion of the Katy Fulshear Lift Station, projected to cost $3,121,300. These projects will utilize the city's excess fund balance, which has been reduced to 35% of operating expenditures, a level deemed healthy by council members.

A key topic of discussion was a proposed 2% cost of living adjustment and a step program for city employees. It was noted that 79 employees, including 48 city staff and 31 police department members, would be eligible for the step program. The increase in eligible city staff was attributed to a change in the performance appraisal program. However, the total cost of $88,000 could fluctuate based on employee turnover.

Concerns were raised regarding the cumulative impact of salary increases, including the 2% adjustment and the additional 2.5% for eligible employees. Council members expressed the need for more data to assess the financial implications of these increases, particularly in comparison to industry standards.

The council also reviewed a historical overview of the city's fund balance, which has remained stable, with only a slight dip in fiscal year 2021 due to prior expenditures. An informal salary survey for the police department was discussed, comparing Fulshear's pay rates with those of nearby cities. The council acknowledged the challenges in making direct comparisons due to differing pay structures.

Further discussions included the potential increase of the water utility base rate from $13 to $15, which would address a projected deficit in the operating fund. The council noted that outsourcing utilities would only yield a marginal difference in costs compared to in-house management.

The meeting concluded with a review of potential funding sources for various unfunded items, including a preventative pavement maintenance program and police salary adjustments. The council emphasized the importance of public engagement regarding any proposed tax rate increases, as maintaining the current maintenance and operations rate would require voter approval.

Overall, the meeting highlighted the council's commitment to fiscal responsibility while addressing the needs of city employees and infrastructure projects. The next steps will involve further analysis of the proposed budget adjustments and continued discussions on funding strategies.