HomeMy WebLinkAboutFY26 Proposed GF Budget Overview v2 (2)Fiscal Year
2025-2026
Proposed Budget General Fund
October 1, 2025 –September 30, 2026
September 9, 2025 1
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 2
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 3
Overview of Economic Conditions *pg 7 & 23 of Proposed Budget
September 9, 2025 4
0.49 0.48 0.49 0.49 0.51
0.54
0.45
0.40 0.38 0.37
0.31 0.31 0.30 0.30 0.28
0.25 0.26 0.25 0.25 0.25
-
0.100000
0.200000
0.300000
0.400000
0.500000
0.600000
2016 2018 2020 2022 2024 2026 2028
Property Tax Rate by Type
Operating Debt Service
0.79 0.79 0.79 0.79 0.79 0.79
0.71
0.65 0.63 0.62
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Property Tax
Tax Rate
22% Decrease in Taxes over 4 years33% Decrease in Taxes for Operating
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 5
Expenditures by Departments *pg 23 of Proposed Budget
September 9, 2025 6
Administration 3,375,558$ 2,720,789$ -19%
City Secretary 1,870,922 1,850,000 -1%
City Attorney 1,915,798 1,958,973 2%
Finance 2,991,800 2,991,800 0%
Information Technology 3,280,875 3,723,860 14%
Human Resources 1,115,064 1,054,553 -5%
Development Services 5,491,948 5,897,488 7%
Civic Center 1,524,956 1,481,338 -3%
Police 22,768,010 22,646,403 -1%
Fire 18,193,500 18,390,678 1%
Public Works 10,907,626 10,583,062 -3%
Equipment Services 1,581,422 1,736,027 10%
Health and Welfare 2,122,647 2,289,940 8%
Parks and Recreation 4,237,603 4,168,521 -2%
Library 1,538,793 1,633,678 6%
Non_Departmental 14,117,346 8,861,935 -37%
-19%-1%2%0%14%
-5%
7%
-3%
-1%
1%
-3%
10%8%
-2%
6%
-37%
$(40.00)
$4,999,960.00
$9,999,960.00
$14,999,960.00
$19,999,960.00
$24,999,960.00
Department Comparisons
24-25 25-26 Percentage Comparison
Non-Departmental Expenditures
September 9, 2025 7
Description 24-25 Budget 24-25 Current 25-26 Proposed
TRANSFER TO EDC FOR EOC $132,588 $132,588 $132,588
TRANSFER TO FUND 101 (Health Matching Grants) 97,000 97,000 97,000
TRANSFER TO FUND 151 (TIRZ Tax Obligation) 72,011 72,011 82,347
TRANSFER TO FUND 307 (Capital Expenditures) 6,031,000 6,031,000 2,500,000
TRANSFER TO FUND 401 (Transit Fund)2,737,873 2,928,513 0
TRANSFER TO FUND 405 (Water and Sewer Capital)0 7,303,894 0
TRANSFER TO FUND 410 (Water and Sewer Ops)0 356,801 0
TRANSFER TO FUND 612 (General Liability) 2,444,608 2,444,608 3,000,000
TRANSFER TO FUND 625 (Capital Equipment and Vehicles) 2,552,266 2,552,266 3,000,000
TRANSFER TO FUND 103 (Golf Course) 50,000 50,000 50,000
$14,117,346 $21,968,681 $8,861,935
Botton of pg 23 of Proposed Budget and Current FY2025 Budget Amendments
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 StationTech1
•Health and Welfare
•Immunization Nurse
September 9, 2025 8
*pg 257 of Proposed Budget; some changes have
been made since the printing of the proposed and
this reflects those changes
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 9
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 10