Title
Consider and take action on an ordinance amending the City of League City, Texas, Governmental, Proprietary, and Capital Funds Budget for Fiscal Year 2026 by amending Ordinance No. 2026-08 to adjust the operating and capital budget for actual and projected expenditures (Assistant City Manager - CFO)
Staff requests approval on first and final reading.
Taxpayer Impact Statement Required per H.B. 1522 effective September 1, 2025
2024 Adopted Tax Rate $0.369 with average homestead taxable value of $351,138 equals tax of $1,295.70
2025 No-New-Revenue Tax Rate $0.36355 with average homestead taxable value of $362,634 equals tax of $1,318.36
2025 Proposed Tax Rate $0.36355 with average homestead taxable value of $362,634 equals tax of $1,318.36
Background:
The proposed ordinance requests an increase of $9,634 to the Municipal Court TPRF Fund and an increase of $629,200 to the Hurricane Laura Fund.
If approved, the proposed ordinance would amend the City’s FY2026 budget to incorporate proposed adjustments for the following:
General Fund
City Manager ($149,045): budget transfer from General Fund Non-Departmental to City Manager budget in accordance with contract. Amount is offset by available budget in Non-Departmental.
State Revenue ($250,000): revenue increase due to funds received from State. This item was previously approved by council on April 28, 2026, agenda item 6A. These expenses are 100% offset by the funds appropriated from the 89th Legislative Session.
• Fire ($169,132): budget increase to purchase supplies and equipment.
• Fire Marshal ($10,132): budget increase to purchase supplies.
• EMS ($7,357): budget increase of $70,736 to purchase equipment. In addition, budget for salaries was reduced by $63,379 due to savings, the net change to the department will be an increase of $7,357.
Planning ($51,000): budget increase for BESS contracts with developer reimbursement of the same.
Library ($3,879): budget increase to purchase teen literacy promotion supplies. This item was previously approved by council on February 25, 2025, agenda item 6D. These expenses are 100% offset by the Texas State Library and Archives Commission’s Texas Reads grant.
Parks Operations ($158,500): budget increase to maintain TxDOT medians. This item was previously approved by council on March 24, 2026, agenda item 6K.
Police ($400,000): budget decrease due to salary savings from open positions.
Utility Fund
Water Production ($103,928): budget transfer from Wastewater to Water Production due to fully staffed department, and to purchase urgent replacement equipment (Colorimeter, Automatic Flushing Stations and Hydrant Pressure Recorder). Amount is offset by available budget in Wastewater’s Utility System Repair.
Special Revenue Fund - Municipal Court TPRF Fund
Technology Maintenance ($9,634): budget increase to complete software upgrade.
Special Revenue Fund - Hurricane Laura
Equipment ($629,200): budget increase to purchase generators. This item was previously approved by council on March 17, 2026, agenda item 3A. The FEMA Hazard Mitigation grant requires a 10% match with the City's portion to be funded by a cash transfer from Tax Supported CIP cash fund 5015.
This request is to fund the acquisition and installation of seven permanent back-up generators. The City was awarded a reimbursable grant with the City responsible for a 10% match. $62,920 will be transferred from Misc. Capital Projects Fund 5015. $566,280 will be transferred from CIP Sales Tax Fund 5016, which is anticipated to be reimbursed by FEMA and will be transferred back.
In addition to the data sheet this packet includes:
• Budget Ordinance and Exhibit A, B & C - Exhibit A details how these adjustments affect the approved budgets by fund and department; Exhibit B details the Capital Budget; and Exhibit C details the citywide summary
TOTAL BY FUNDS:
General Fund
The requested adjustment to the General Fund expenditure budget includes a $549,045 increase offset by a decrease of the same.
The total fund appropriation amended budget of $110,401,784 does not change.
Working days of capital over the 110 days required by policy were 4.0 days per the 2nd Quarter Report.
Utility Fund
The requested adjustment to the Utility Fund expenditure budget includes a $103,928 increase offset by a decrease of the same.
The total fund appropriation amended budget of $54,532,455 does not change.
Municipal Court TPRF Fund
The requested adjustment to the Municipal Court TPRF Fund includes an increase of $9,634 for software upgrade costs.
The total fund appropriation adopted budget of $18,000 increases by $9,634 to $27,634.
Hurricane Laura Fund
The requested adjustment to the Hurricane Laura Fund includes an increase of $629,200 to purchase generators. 90% of the costs will have offsetting revenue.
The total fund appropriation adopted budget of $90,000 increases by $629,200 to $719,200.
Taxpayer Impact Statement Required per H.B. 1522 effective September 1, 2025
2024 Tax 2025 Tax
Year Year* No-New-
Adopted Revenue Proposed Change
Tax Rate Tax Rate Tax Rate
Total tax rate 0.36900 0.36355 0.36355 decrease of -0.005450 per $100,
(per $100 of value) or -1.48%
Average homestead $351,138 $362,634 $362,634 increase of 3.27%
taxable value
Tax on average $1,295.70 $1,318.36 $1,318.36 increase of 22.66, or 1.75%
homestead
*2025 Tax Year is the City's Fiscal Year 2026
Attachments:
1. Ordinance with Exhibits A, B, and C
2. Approved Agenda April 28, 2026, item 6A
3. Approved Agenda February 25, 2025, item 6D
4. Approved Agenda March 24, 2026, item 6K
5. Approved Agenda March 17, 2026, item 3A
CONTRACT ORIGINATION:
FUNDING
{X} Funds are available from the Municipal Court TPRF Fund and Hurricane Laura Fund.
STRATEGIC PLANNING
{X} Financially Sustainable