League City residents won't see their property tax bill rise under the proposed FY2027 budget, which is built on the no-new-revenue rate. But the city is planning more than $800 million in infrastructure spending over the next five years, including a $165.9 million debt issuance headed for a council vote in August.

City Manager John Baumgartner presented the proposed FY2027 budget and the 2027–2031 Capital Improvement Plan to the City Council at its Tuesday, July 14 regular meeting, telling members the spending plan is "based on the no new revenue rate, so we try to hold true to that and can't fit everything that staff has asked for or that we think was worthy of inclusion in the budget."

The city held its first public budget workshop Monday, July 27, at the Civic Center. No minutes or outcomes from that session have been released.

What's ahead

Three key votes remain on the calendar:

  • Tuesday, August 11 — Proposed tax rate announcement
  • Tuesday, August 25 — First reading of the budget ordinance, public hearing on the FY2027 budget, and council vote on $165.9 million in Certificates of Obligation
  • Tuesday, September 8 — Second reading and final adoption of the budget ordinance and property tax rate

The new fiscal year begins Thursday, October 1.

$807 million in capital projects

The five-year CIP totals $807.1 million in anticipated investment. Water infrastructure dominates, accounting for 51.67 percent of the total. Tax-supported programs make up $267.6 million, led by streets and traffic at $118.19 million, drainage at $54.97 million, and fire stations at $40.89 million.

In FY2027 alone, the capital budget funds 69 projects at $124.23 million — 43 tax-supported and 26 utility projects.

Highlights for the coming year include:

  • $25.49 million for drainage, with $17.72 million going to construction on Magnolia Creek and Cedar Gully channel improvements, Clear Creek tributaries clearing, and Interurban neighborhood drainage improvements funded by a federal CDBG-MIT grant awarded in 2024
  • $15.05 million for streets and traffic, including $7.6 million for the Hobbs Road extension to FM 517, a four-lane divided roadway to improve west League City access (Galveston County has committed $2 million toward that project)
  • $15.13 million for design of a 20 million-gallon-per-day expansion of the Southeast Water Purification Plant, with a construction cost share estimated between $250 million and $400 million depending on whether the City of Houston participates
  • $8.07 million for parks, with $5.36 million going to Phase 2 of Lobit Park, adding detention, soccer fields with lights, a gazebo picnic area, a covered pavilion over basketball courts, and additional parking

Debt and unfunded needs

The $165.9 million in Certificates of Obligation, designated Series 2026, would fund major infrastructure and park improvements. The city posted its Notice of Intent to Issue on Monday, July 6. The authorizing ordinance goes before the council on Tuesday, August 25, at 6 p.m. in the Council Chambers at 200 W. Walker St.

Baumgartner acknowledged in the CIP transmittal letter that the capital budget "is underfunded to maintain existing infrastructure," with nearly $400 million in unfunded projects on the city's list. He noted a future general obligation bond election may be needed to replace deteriorated concrete streets.

How to weigh in

The public hearing on the FY2027 budget is set for Tuesday, August 25. The proposed tax rate will be formally announced Tuesday, August 11. Council members have been offered individual meetings with Baumgartner and Assistant City Manager-CFO Angie Steelman to discuss budget details before the public hearings. The full CIP is posted at leaguecitytx.gov/2803/5-year-Capital-Improvement-Plan.