Houston approves $7.5B budget, adds $5 trash fee and utility charge

Houston City Council approved a $7.5 billion FY2027 budget on June 10, locking in new charges that will affect household bills when the new fiscal year begins July 1.

The plan adds a $5 monthly solid-waste administrative fee and a 5% rental fee on utility gross revenues tied to the city’s right of way. City officials say the changes are meant to help fund core services without raising the property tax rate, while critics argue the budget shifts more costs onto residents.

What residents should expect

The trash fee is the most visible change for many Houston households. City budget materials say the charge will support solid-waste service and be paired with service improvements already underway, including new trucks and more reliable service. Local reporting says residents should expect to see the fee on most August water bills.

The utility charge is less direct for most residents, but it is still part of the city’s new revenue plan. Local coverage says the utility system will begin paying the city for use of the right of way, sending additional revenue into the general fund for core services such as parks, libraries, police and fire.

The politics behind the vote

The budget passed 15-1, with Council Member Edward Pollard voting no and Council Member Tiffany Thomas absent, according to local reporting. In a June 10 statement, City Controller Chris Hollins said the budget “deserves an F” for transparency and accountability and shifts more costs onto working families.

Mayor John Whitmire has argued the plan gives Houston a more stable financial foundation without increasing the property tax rate. Supporters say the changes will help close budget gaps and maintain services; opponents say residents should not be asked to pay more without clearer guarantees on results.

What to watch next

The practical questions now are how the city will show the new fee on bills, whether low-income assistance is expanded, and whether trash service improves enough to justify the new charge. For Houston households, the debate is moving from council chambers to the utility bill.

Sources

• City of Houston FY2027 Budget Proposal Portal
• Houston Chronicle Budget Coverage