Government
Houston Mayor John Whitmire announced May 5 the city will implement three new measures to help close a projected $209 million budget deficit for fiscal year 2026-27, including a new administration fee that will be added to homeowners’ water bills starting in July. Explained To implement the administration fee, the city had to first move the Solid Waste Department to a municipal utility under Houston Public Works. The change shifts the department’s roughly $100 million annual budget away from the general fund, which is paid by property taxes, to instead rely on user fees, city officials said. Houston to add new $5 admin fee to homeowner bills
How it works The change also allows the city to implement the $5 monthly fee, which Whitmire said is projected to generate approximately $24 million in revenue annually. The fee will remain at $5 for two years and could increase each year until it reaches the full cost of service at $25 per month by 2032. This fee will be added to city water bills to cover trash and recycling services. However, Whitmire said the fee is not yet considered a traditional garbage fee. “There is a tremendous source of revenue that other cities are using, that, for whatever reason, the city of Houston didn’t,” Whitmire said. In related news The city will also implement a right-of-way fee on the water and sewer system, set at 5% of gross reve- nue, which will transfer approximately $110 million annually from the city’s combined utility system to the general fund, city officials said. In FY 2026-27, it will help generate roughly $104 million.
SOURCES: CITIES OF HOUSTON, AUSTIN, DALLAS, SAN ANTONIO, FORT WORTH, EL PASO, PASADENA, SUGAR LAND/ COMMUNITY IMPACT Garbage/administration fees across major Texas cities Houston is the last major city in Texas to implement an administration/garbage fee as a source of revenue. Houston $5 Austin $64 Dallas $40 San Antonio $25 Fort Worth $26 El Paso $36 Pasadena $34 Sugar Land $24
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