HOUSTON, Texas — Houston Mayor John Whitmire on Tuesday proposed a set of structural budget changes, including new fees and departmental restructuring, to address a projected general fund deficit of more than $200 million in the 2027 fiscal year.
Whitmire said the proposal would shift the city’s solid waste department, which serves about 400,000 customers, from the general fund into the water and wastewater utility system. The plan includes a proposed $5 monthly administrative fee for solid waste customers and requires the utility to pay the city for use of municipal right-of-ways. City officials said the changes could eliminate the projected deficit in 2027 if approved by the City Council.
The administration said the solid waste department’s roughly $100 million budget would be removed from the city’s $3 billion general fund under the plan. Whitmire said the city will not raise property taxes under the proposal.
City Controller Chris Hollins said the restructuring raises questions about funding priorities for water and wastewater infrastructure and potential rate impacts. He said the controller’s office needs additional financial details before certifying the budget.
The controller’s office has projected the city’s general fund balance could fall below $300 million at the end of the current fiscal year in June, leaving limited room above the city’s required minimum reserve threshold.
The proposal aligns Houston’s utility funding structure more closely with other major Texas cities, including Dallas, Austin, and San Antonio, where residents pay monthly fees for solid waste services and utilities make payments for use of public rights-of-way.
The City Council’s budget and fiscal affairs committee is scheduled to review a detailed five-year financial forecast and budget proposal on Wednesday. Council members attending Whitmire’s announcement included 11 of the 16 council members.
If approved, the changes would take effect in the upcoming fiscal cycle.
