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. 2025-31 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 a net increase of $455,192 to the General Fund, a net increase of $193,220 to the Utility Fund, an increase of $430,757 to the Asset Forfeiture Fund, an increase of $246,023 to the Technology Fund, and the addition of League City Signal Improvements project to the capital budget.
If approved, the proposed ordinance would amend the City’s FY2026 budget to incorporate proposed adjustments for the following:
General Fund
Compensation Increases ($1,753,079): $1,753,079 budgeted in General Fund Non-Departmental and then reallocated to each department based on actual merit, market adjustments, and cost-of-living increases. This is NOT an increase to the fund budget but a transfer from General Fund Non-Departmental to each department as allocated in the January 2026 merit implementation. See Exhibit A of the ordinance for the allocation to each department.
Police ($135,369): budget increase of $135,369 to purchase equipment for digital forensics lab. This item was previously approved by council on January 27, 2026, agenda item 6D. These expenses are 100% offset by the DJ-Edward Byrne Memorial Justice Assistance Grant Program awarded on September 29, 2025.
Utility Fund
Compensation Increases ($279,646): $279,646 budgeted in Utility Fund Non-Departmental and then reallocated to each department based on actual merit, market adjustments, and cost-of-living increases. This is NOT an increase to the fund budget but a transfer from Utility Fund Non-Departmental to each department as allocated in the January 2026 merit implementation.
Special Revenue Fund - Asset Forfeiture Fund
Autos & Trucks ($430,757): budget increase of $430,757 to purchase Lenco Bearcat Rescue Vehicle. This item was previously approved by council on October 14, 2025, agenda item 6A.
FY2025 Rollovers (Previously approved in FY2026 Adopted Budget)
Increase is due to purchases made in FY2025 for which goods and services were not received as of September 30, 2025. The increase is in accordance with the FY2025 Adopted Budget ordinance 2025-31, section 6, “That the budget for FY2026 shall be increased for valid outstanding encumbrances at the conclusion of FY2025. Said increased appropriations shall be equal to the outstanding and valid encumbrances in excess of $25,000 per purchase and shall be recorded in the appropriate accounts.”
Department budgets were increased as follows:
General Fund
Total FY2025 Rollover amount for General Fund is $319,823:
• Information Technology ($319,823): Motorola radios for public safety.
Utility Fund
Total FY2025 Rollover amount for Utility Fund is $193,220:
• Wastewater ($193,220): Repairs to Lift Pumps at Dallas Salmon WWTP and West Main.
Special Revenue Funds
Total FY2025 Rollover amount for Special Revenue Funds is $246,023:
• Technology Fund ($246,023): Replacement CAD, RMS & Mobile Software System
Internal Service Funds
Total FY2025 Rollover amount for Internal Service Funds is $2,308,956:
• Capital Replacement Fund
o $28,660 for one Ford F250 4x2 Ext Cab Unit 430 (Animal Care)
o $74,799 for one Ford F150 Police Responder and emergency equipment Unit 155 (Police)
o $1,298,801 for one Pumper Truck Unit 15 (Fire)
o $457,674 for one Ambulance Unit 260 (EMS)
o $449,022 for one Ambulance Unit 240 (EMS)
CAPITAL BUDGET - EXHIBIT B
If approved, the proposed budget would amend the City’s FY2026 Capital Budget to add project, League City Signal Improvements, as shown on Exhibit B ($1,623,910):
• This request is to add the purchase and installation of Traffic Signal Equipment related to the Various League City Signal Improvements Project (ST2601). This item was previously approved by City Council on January 13, 2026, Agenda Item 6B. Funding is available from DR2401 Clear Creek - FM270 Bypass Channel which has been removed from the CIP program.
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 $2,208,271 increase and a $1,753,079 decrease for a total net increase of $455,192. Of the net increase, $135,369 is for the purchase of equipment for digital forensics lab with offsetting revenue from the Justice Assistance Grant. The remaining $319,823 is a FY2025 Rollover.
The total fund appropriation amended budget of $109,946,592 increases by $455,192 to $110,401,784.
Working days of capital over the 110 days required by policy were 5.5 days per the 1st Quarter Report. This amendment along with the FY25 rollover amount lowers the excess working days of capital to 3.8 days over the 110 days required by policy.
Utility Fund
The requested adjustment to the Utility Fund includes a $472,866 increase and a $279,646 decrease for a total net increase of $193,220 for FY2025 Utility Fund Rollovers.
The total fund appropriation adopted budget of $54,339,235 increases by $193,220 to $54,532,455.
Asset Forfeiture Fund
The requested adjustment to the Asset Forfeiture Fund includes an increase of $430,757.
The total fund appropriation adopted budget of $268,145 increases by $430,757 to $698,902.
Technology Fund
FY2025 Technology Fund Rollovers totaled an increase of $246,023.
The total fund appropriation adopted budget of $370,000 increases by $246,023 rollovers to $616,023.
Capital Replacement Fund
FY2025 Capital Replacement Fund Rollovers totaled an increase of $2,308,956.
The total fund appropriation adopted budget of $2,740,215 increases by $2,308,956 rollovers to $5,049,171.
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
(per $100 of value) 0.36900 0.36355 0.36355 decrease of -0.005450 per $100, or -1.48%
Average homestead
taxable value $351,138 $362,634 $362,634 increase of 3.27%
Tax on average
homestead $1,295.70 $1,318.36 $1,318.36 increase of 22.66, or 1.75%
*2025 Tax Year is the City's Fiscal Year 2026
Attachments:
1. Proposed Ordinance with Exhibits A, B, and C
2. Approved Agenda October 14th, 2025, item 6A
3. Approved Agenda January 27th, 2026, item 6D
4. Approved Agenda January 13th, 2026, item 6B
FUNDING
{X} Funds are available from the General Fund, Utility Fund, Asset Forfeiture Fund, Technology Fund, Capital Replacement Fund, and CIP Capital Projects.
STRATEGIC PLANNING
{X} NOT APPLICABLE