Shenandoah posts proposed $21.5 million budget as tax rate remains pending

Shenandoah has posted a proposed $21,518,042 budget for fiscal year 2026-27, but the city’s final property-tax rate and some capital-project decisions remain unresolved.

The proposal was posted for public review on July 29, 2026, after the City Council discussed the budget during its July 8 meeting. Shenandoah is a city in Montgomery County, Texas, and its fiscal year runs from Oct. 1 through Sept. 30.

Proposed revenue relies on sales-tax growth

The proposed budget projects $9,348,437 in sales-tax revenue, a proposed 5% increase from the prior budget. That is a projection, not guaranteed revenue, and it will be one of the figures to watch as the city moves toward final budget action.

Property-tax revenue is projected at $1,411,961. The city’s tax information says the proposal would raise $115,794.89 more in total property taxes than the prior budget, an increase of 3.59%. The documents state that the calculations are estimates subject to tax-office calculations and may change.

The listed tax rate is not final

The proposal lists an estimated total property-tax rate of $0.1821 per $100 of value, including operating and debt-service portions. That figure is listed for planning and public-review purposes; it is not a final rate adopted for fiscal 2026-27.

That distinction matters for homeowners and businesses. The proposed rate alone cannot determine an individual tax bill, which also depends on the property’s taxable value, exemptions and the final rate adopted by the city.

Police, fire and public works are major priorities

The proposal identifies police, fire services and public works among the city’s largest operating-spending priorities. The budget materials describe public safety as a central service responsibility, while public works includes functions such as streets, drainage, water and sewer, parks and capital-project work.

Shenandoah contracts fire services with The Woodlands Township and operates its own police department. Those arrangements are part of the operating picture residents and businesses will be watching as the proposed budget moves through review.

Capital-project funding is still open

Capital-project funding had not been resolved when the proposal was released. The budget materials schedule further discussion for the Aug. 5, 2026, public budget workshop.

The city’s budget information page says the workshop is open to the public and will address capital projects, expenses, major purchases, revenue and other budget matters. The proposed budget lists Aug. 28 as the expected record vote date for budget adoption, while noting that the date may change.

For residents, businesses and property owners, the main takeaway is that Shenandoah has released a detailed proposal, not a final budget. The sales-tax projection, property-tax figures, estimated rate and capital spending remain subject to further review and official action.

Sources

• City of Shenandoah, 2026-2027 Proposed Budget
• City of Shenandoah proposed budget and tax information notice
• Community Impact report on Shenandoah’s proposed FY 2026-27 budget