Fiscal Year 2027 Proposed Annual Budget - Presentation and PUBLIC HEARING

Staff Report & Agenda Item Details

Texas Local Government Code Chapter 102 requires the governing body of a municipality to hold a public hearing on the proposed annual budget and to allow any person to attend and participate. Article XII, Section 12.02 of the Richland Hills City Charter likewise requires a public hearing on the budget. The City of Richland Hills is conducting the FY 2027 budget public hearing on August 17, 2026 to receive public input before final consideration of the budget. This agenda item is limited to a staff presentation, the public hearing, Council questions and discussion, and any direction to staff. No action to adopt the budget is requested on August 17. City Council consideration and the record vote on adoption of the FY 2027 Budget are scheduled for August 24, 2026. Attached to this memo is the proposed FY 2027 Annual Budget. The budget summarizes the City's planned operations, services, capital expenditures and fund activity for the fiscal year beginning October 1, 2026. The proposed FY 2027 Budget covers 19 separate funds. Across all funds, proposed revenues total $25,240,629 and proposed expenditures total $26,588,408. Compared with the FY 2026 Adopted Budget, revenues decrease by 3.2% and expenditures decrease by 13.8%. The resulting $1,347,779 difference is supported by planned uses of available balances in designated special-purpose, capital and project funds. The General Fund is balanced without a transfer from the Strategic Initiative Fund. Proposed General Fund revenues total $10,310,128 and proposed expenditures total $10,262,067, producing a projected operating surplus of $48,061. GENERAL FUND FY26 ADOPTED FY27 PROPOSED CHANGE Revenues $10,530,687 $10,310,128 -2.1% Expenditures $11,200,624 $10,262,067 -8.4% Revenues over/(under) expenditures ($669,937) $48,061 $717,998 The projected General Fund ending balance is $3,719,677. The calculated 90-day reserve is $2,565,517, leaving approximately $1,154,161 above the reserve requirement. Revenue projections and tax-

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 8.9/10). Under the Bastiat Liberty Watchdog Index, voting YES on measures that cap or reduce ad valorem tax burdens, expand taxpayer exemptions, retire debt early, enforce competitive bidding caps, or remove regulatory/zoning barriers to private property rights earns a positive Pro-Liberty score.