HomeMy WebLinkAboutFY26 Proposed GF Budget Overview v2Fiscal Year
2025-2026
Proposed Budget General Fund
October 1, 2025 – September 30, 2026
September 9, 2025
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Types of Funds
General Fund – Principal financial support for basic services in public safety, parks & recreation, and general government operations, etc.
Enterprise Fund – Provides direct deliverables to customers who receive goods or services in exchange for payment; self-sufficient, created to generate revenue to cover expenses; acts
like a business
Special Fund – For a special purpose and disbursed only for the purpose for which it was created
September 9, 2025
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Department Budget Comparisons
The City Manager has presented to council a balanced budget
Highlights:
Increase of 14 authorized personnel in General Fund
Increase of 15% in projected costs for health insurance
Proposed 3.5% Cost of Living adjustment beginning October 1, 2025
Proposed Implementation of Wage & Classification Study January 1, 2026
September 9, 2025
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Overview of Economic Conditions *pg 7 & 23 of Proposed Budget
September 9, 2025
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22% Decrease in Taxes over 4 years
33% Decrease in Taxes for Operating
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Revenue *pg 23 of Proposed Budget
Highly modest (1.6%) increase in property taxes (bleak outlook for future)
Industrial Payments are steady with no significant increase (should increase in FY 2026-2027)
Sales tax has biggest gains to offset low numbers
Gross Receipts taxes (utilities, and not franchise) steady
Remainder of General Fund Revenue reflects projected decrease due to cash available for investments
Decreased use of Fund Balance for balancing (by 30%)*
September 9, 2025
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Expenditures by Departments *pg 23 of Proposed Budget
September 9, 2025
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Non-Departmental Expenditures
September 9, 2025
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Botton of pg 23 of Proposed Budget and
Current FY2025 Budget Amendments
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Additional Authorized Personnel
City Manager
Communications/Marketing Director
Finance
Accounting Clerk (Accounts Payable)
Development Services
Zoning Inspector and Sr. Environmental Health Inspector
Police
Intelligence Specialist and Sr. Equipment Service Worker
Public Works
3 Sign/Signal Tech; Traffic Supervisor; 2 Equipment Operator I; Stormwater Pump Station Tech 1
Health and Welfare
Immunization Nurse
September 9, 2025
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*pg 257 of Proposed Budget; some changes have been made since the printing of the proposed and this reflects those changes
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Council Adopted Financial Policy Requirements and Recommendations
General Fund maintains 60 days of operating costs as a fund balance plus $1.5million
This equates to $15,354,418 for FY2025-2026
FY2024 Fund Balance was $25,662,689 (page 16 of FY2024 ACFR)
The City has subsidized the Water and Sewer Enterprise fund by $7,600,000 in FY2024-2025 Budget
FY2025 Estimated Ending Fund Balance is $18,062,689
Cash Balance for FY2024 was $7,568,801 (page 13 of FY2024 ACFR)
Current Estimated Cash Balance for FY2024-2025 to-date is $5,090,179
September 9, 2025
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Re-cap and Conclusion
The general fund budget as presented is in balance
Though the FY2025-2026 is very tight, we anticipate a positive direction going into FY2026-2027
Property Developments within Port Arthur that have occurred or will finish this year will be captured in next fiscal year, not the one for FY2025-2026
Encouraged about all of the capital activities and ability to have the tools to do them well
Anticipate a positive outcome for future debt obligations
September 9, 2025
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