Houston City Council Meeting: Proclamations, Budget Hearing, and Fiscal Year 2027 Budget Discussion - June 2, 2026

The Houston City Council convened on June 2, 2026, for a full agenda that included three proclamations, public comments on city services and the proposed Fiscal Year 2027 budget, a public hearing on the budget, detailed budget presentations from the City Controller and Finance Director, and voting on numerous agenda items. The meeting highlighted significant community engagement on the proposed solid waste administrative fee, illegal dumping, ditch maintenance, and police spending. No final vote was taken on the FY 2027 budget; that will occur at a later meeting.

Consent Calendar

• Minutes from May 19 and 20, 2026 were adopted unanimously.
• Items 2 through 13 (under miscellaneous, accept work, and purchase categories) were approved en bloc. Item 9 was pulled. Item 41 was pulled.
• Items 15, 16, 17, 18, 19, 24, 25, 26, 27, 33, 35, and 36 were removed from the consent calendar for separate consideration.

Public Comments & Testimony

Numerous residents and organizational representatives spoke during two public comment periods and the budget public hearing. Many speakers focused on the proposed $5 monthly solid waste administrative fee, the ditch reestablishment program, police spending, tax abatements, and animal services.

• Solid Waste Fee & Budget Equity: A majority of speakers opposed the flat $5 fee, calling it regressive. Several speakers, including Rita Robles, Lindsay Williams, and Alfredo Dominguez, proposed a progressive alternative: a $1 monthly fee combined with a one-cent property tax increase. Speakers from the Texas Gulf Coast AFL-CIO, United Here Local 23, and HOPE Local 123 expressed support for the budget, stating it protects city services and workers.
• Ditch Reestablishment: Multiple residents from Districts B, D, and H, including Becky Sell (West Street Recovery), Dana Jones, Betty Gregory, and Brenda T. Arena, presented evidence of standing water and contamination in ditches despite the city's program claiming completion. They urged council to increase funding for ditch reestablishment to $45 million and improve transparency and oversight. Councilmember Tarsha Jackson noted she is working with Public Works on the program.
• Illegal Dumping: Councilmember Salinas highlighted a proposed $3 million budget amendment to combat illegal dumping, referencing the Burns & McDonnell study. Joe B. Allen was recognized earlier for organizing a cleanup that collected 511 tons of illegal dumping in two months.
• Police Overspending: Several speakers, including Alfredo Dominguez, Terry Chen, and Andrea Segovia, criticized the police budget, citing $113 million in overtime in FY25 and the disproportionate growth of police funding relative to other services. They urged council to reduce overtime and increase accountability.
• Animal Services (BARC): Sophia Proler, Jessica Flores, and Gloria Zenteno advocated for increased funding for BARC beyond the new adoption facility, emphasizing the need for proactive programs to keep pets with families and improve shelter operations.
• Tax Abatements: Speakers such as Sarah Riemann and Perla Garcia called for greater transparency and accountability regarding the $93 million in tax abatements (IDAs) granted to corporations, urging council to ensure companies meet hiring and investment promises.
• Other Topics: Speakers also addressed the need for affordable housing, support for the immigrant community, and requests for mental health crisis response funding.

Discussion Items

Proclamations & Recognitions:

• Mayor Whitmire proclaimed June 2, 2026 as "Joe B. Allen Day" for his decades of public service and leadership of a citywide illegal dumping cleanup that collected 511 tons of trash.
• Councilmember Davis recognized Bob Nowak, City Webmaster, on his retirement after 32 years, noting 18 years of perfect attendance and service to 77 council members.
• Mayor Pro Tem Castañeda-Tatum presented a proclamation for the National Forum for Black Public Administrators (NFBPA) Greater Houston Chapter on its 40th anniversary.

Budget Public Hearing and Fiscal Report:

• The public hearing on the FY 2027 budget (Item 1) was held. Speakers reiterated concerns about the solid waste fee, ditch funding, police spending, and BARC.
• City Controller Chris Hollins presented the April 2026 monthly financial report, projecting an ending fund balance of $276.5 million (10.4% of expenditures) for FY 2026, $23.5 million less than the administration's projection. He outlined four "realities": 1) The budget repeats past mistakes (FY 2026 deficit of ~$180 million), 2) It drains the Combined Utility System (CUS) below sustainable levels—diverting over $200 million in year one for non-water uses, 3) The proposed fee structure hides true costs (a solid waste study indicates $31 per household now, rising to $46 by year five), and 4) The flat $5 fee is regressive, hitting lower-income households hardest. Hollins emphasized the need for honest communication and warned that bondholder approvals for the right-of-way fee are uncertain.
• Finance Director Melissa Dubowski presented the administration's view, stating that the budget addresses structural challenges without a property tax rate increase. She noted that the CUS has $1.5 billion in reserves and that a right-of-way fee is standard among peer cities. She confirmed that the proposed budget includes an additional $20 million for ditch reestablishment (total $50.5 million) and highlighted efforts to control costs.
• Councilmembers engaged in a vigorous exchange with the Controller and Finance Director, particularly on the long-term cost of solid waste service and the feasibility of keeping the fee at $5.

Amendments and Separate Items:

• Councilmember Salinas proposed three amendments: (1) $3 million from management consultants for illegal dumping, (2) $500,000 for temporary workers to accelerate hiring at Public Works (HPW), and (3) a floor amendment to allow the administrative fee to be covered by the Water Fund for low-income assistance. All were noted for further discussion.
• Items 35 and 36 (interlocal agreements for law enforcement overtime to address homelessness) were discussed extensively. Councilmembers Castillo, Thomas, Martinez, and Pollard spoke in favor, noting the recent soft opening of the 419 Emancipation facility (80 individuals served, 3 moved to permanent housing) and the importance of phased occupancy and community engagement. The items passed.
• Item 27 (new BARC adoption facility) was supported as a positive step, with Councilmember Castillo urging continued collaboration with Harris County.
• Item 19 (expansion of CUS to include solid waste) was part of the budget package and was tagged for next week.

Procedural Motions:

• Numerous motions to suspend rules to add speakers to the public hearing list were approved.

Key Outcomes

• Consent Agenda: Adopted with no objections.
• Proclamations: Approved and presented.
• Items 15, 24, 26, 27, 35, 36: Passed after separate vote.
  • Item 15 (continuation of appropriations) passed.
  • Item 24 ($250,000 for Walter Rasmus Park Heritage House) passed.
  • Item 26 ($500,000 for Tranquility Park) passed.
  • Item 27 ($31.8 million for contract with Lindbeck Group, including BARC adoption facility) passed.
  • Item 35 (interlocal with Harris County for homeless services) passed.
  • Item 36 (interlocal with METRO for homeless services) passed.
• Items 25 and 33: Tagged by Councilmember Castillo and Pollard respectively, to be considered later.
• Items 14, 16, 17, 18, 19: Tagged for separate consideration after the public hearing; final action scheduled for a later meeting.
• Public Hearing: Closed after all speakers, with the budget discussion to continue.
• Monthly Financial Report: Accepted unanimously.
• Budget Amendments: Councilmembers Salinas, Ramirez, Peck, and others announced proposed amendments to be discussed further. No amendments were voted on at this meeting.