Consider and take appropriate action regarding Ordinance O-24-25, an ordinance of the City Council of the City of Kaufman, Texas, making appropriations for the support of the City; appropriating money to a sinking fund to pay interest and principal on the City’s indebtedness; approving and adopting the annual budget of the City of Kaufman, Texas for the 2025-2026 Fiscal Year, including the Budget for the City of Kaufman Economic Development Corporation; providing for emergency expenditures and e

Staff Report & Agenda Item Details

The FY26 Budget was filed on August 1, 2025, with the City Secretary’s Office, in accordance with the City Charter. A public hearing was held on August 18, 2025, in accordance with State Law and the City Charter. The total FY26 Budget is $25,097,830.00, excluding Grant and CIP Funds, and is balanced for all funds. A budget is balanced when ongoing revenues cover ongoing expenditures, and where the use of surplus funds is limited to one-time capital costs. FINANCIAL CONSIDERATIONS: Adoption of the annual budget constitutes the proposed revenues and expenditures as approved by the governing body for the fiscal year. This budget will raise more total property taxes than last year’s budget by $439,392.11, 7.02%, and of that amount, $185,557.18 is tax revenue to be raised from new property added to the tax roll this year. The FY26 General Fund budget includes a Maintenance and Operations (M&O) tax rate of $0.5349345, which is an increase of $0.0144602 from the FY25 M&O tax rate. The Debt Service Fund budget includes an Interest and Sinking fund (I&S) tax rate of $0.2240655, which is a decrease of $0.0149602 from the FY25 I&S tax rate. The total tax rate for FY26 is $0.7590000, which is a decrease of $0.0005000 from the FY25 total tax rate of $0.7595000. KEDC FINANCIALS The proposed annual budget for the Kaufman Economic Development Corporation was presented to the Board of Directors of the KEDC and approved on August 12, 2025. Anticipated Total Revenues: $690,000 Budget Breakdown: Debt Service: $287,000 Staffing & Contracted Staff: $230,635 General Operations: $137,365 Matching Grants: $75,000 TOTAL BUDGET: $730,000 Similar to the FY 2025 budget, this does slightly dip into KEDC fund balance reserves. Given some funds are prospective based on demand, the entire budget may not be fully expended. Major Initiatives: New KEDC Website Matching Property Improvement Grants Staffing & Employee Retention (2 steps consistent with City Step Plan)

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 8.4/10). Under the Bastiat Liberty Watchdog Index, measures that increase tax rates or fee schedules, issue new debt or Certificates of Obligation, expand regulatory/zoning restrictions on private land use, or authorize unbudgeted spending expansions reduce an official's Freedom Score when voted YES (and reward dissenting NO votes).