Title
Discuss and consider approval of a supplemental budget amendment allocating available General Fund balance above the City’s 90-day reserve target following completion of the annual audit.
Body
REQUESTOR:
Finance Department
BACKGROUND:
During the Fiscal Year 2024-25 annual audit process, the City’s audited financial statements identified approximately $2.765 million in available General Fund balance above the City’s established 90-day fund balance reserve target. The increase was primarily attributable to conservative revenue projections, continued strong sales tax performance, higher-than-anticipated interest earnings, and expenditure savings realized across multiple departments.
This available fund balance is in addition to the previously approved Fiscal Year 2024-25 surplus allocation authorized by City Council through Ordinance No. 3976 on November 4, 2025. At that time, Council allocated approximately $2.3 million of the projected Fiscal Year 2024-25 budget surplus toward several strategic and capital priorities, including Mercer Park enhancements, Squire Park enhancements, Fitness Park at the Justice Center, and the Real Time Crime Center.
DISCUSSION:
As part of the upcoming budget process and in response to prior City Council feedback, staff is returning with the previously discussed project list, along with several additional capital and infrastructure priorities identified since the original presentation. These additional items include:
• $250,000 for gateway signage enhancements identified by City Council as a priority during the most recent Council meeting;
• $685,000 for capital-related North Texas Emergency Communications Center (NTECC) radio system upgrades contributing to increased upcoming service costs; and
• $600,000 for critical Information Technology infrastructure upgrades associated with systems and equipment that have exceeded or are approaching the end of their useful life.
The proposed supplemental budget amendment would allow Council to formally allocate available fund balance toward one-time capital, infrastructure, technology, and strategic investment priorities while maintaining compliance with the City’s adopted financial reserve policies.
Staff is seeking City Council direction regarding the preferred allocation strategy for the available General Fund balance above the City’s reserve target and consideration of the proposed supplemental budget amendment.
Approval of Ordinance No. 4004 will require a roll-call vote from the City Council.
DISTRICT:
Citywide
POSSIBLE COUNCIL ACTION:
1. I make a motion to approve Ordinance No. 4004 as presented
2. I make a motion to approve Ordinance No. 4004 with modifications.
3. I move to table the issue for further study or take no action.
FISCAL IMPACT:
Approximately $2.765 million in available General Fund balance above the City’s 90-day reserve target is available for allocation through the proposed supplemental budget amendment.
ATTACHMENT(S):
1. Ordinance No. 4004
2. Presentation