FY2026-2030 CAPITAL IMPROVEMENT PROGRAM FY 2026 Proposed Property Tax Rate - $0.36355/$100 valuation Angie Steelman, Assistant City Manger and CFO - So as we come to the end of the budget process for FY2026, tonight is our last scheduled workshop.

Staff Report & Agenda Item Details

FY2026-2030 CAPITAL IMPROVEMENT PROGRAM FY 2026 Proposed Property Tax Rate - $0.36355/$100 valuation Angie Steelman, Assistant City Manger and CFO - So as we come to the end of the budget process for FY2026, tonight is our last scheduled workshop. During our council meeting tonight we will have two items, one is the public hearing on the budget, and the first reading of the budget ordinance. There have only been two small changes that have occurred since we met last time. Changes to the General Fund - Other Adjustments - $55,485 Adopted change to the Volunteer Fire Department Donation Fund $78,908. This will increase the expenditures by $78,908 for the purchase of a grant funded rapid response medical UTV previously budgeted in the donation fund. There is also a change to the revenue by $23,423 representative of the City’s match and we anticipate that it will be reimbursed by the school district. There is also a change to the Volunteer Fire Department Donation Fund, decrease of $23,423 where the City’s match was budgeted to come from. Changes to the Utility Fund – Other Adjustments - $816,373 A change recommended by the City’s external auditors. We have a debt service payment, principal and interest on debt that was issued as part of a cash call for the City of Houston waterline along State Highway 3. It doesn’t change the expenses and it doesn’t change how it is being paid for, it is covered by water CRF’s, but what has changed is the external auditors did not want to see it in our debt service fund for utilities. They wanted to see it as an operation’s cost to the utilities as water contract purchases. The revenue and expense are being moved to the Utility Fund to implement the change they recommended. This is an increase into the operations because the debt service is not part of our operational budget, it is actually segmented and separate. Finally, how it all rolls up to the Citywide - $871,858, just the expense side.

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 9.2/10). 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).