Title
Consider and take action on an ordinance adopting the Annual Budget for Governmental and Proprietary Funds for Fiscal Year 2027 (Assistant City Manager - CFO)
Taxpayer Impact Statement Required per H.B. 1522 effective September 1, 2025 based on Tax Year 2025 (FY2026) and Tax Year 2026 (FY2027):
2025 Adopted Tax Rate $ 0.36355 with an estimated median homestead taxable value of $362,634 equals tax of $1,318.36
2026 No-New-Revenue Tax Rate $0.356505 with an estimated median homestead taxable value of $375,000 equals tax of $1,336.89
2026 Proposed Tax Rate $ 0.356505 with an estimated median homestead taxable value of $375,000 equals tax of $1,336.89
The change in total tax rate is a decrease of 0.007045 per $100, or -1.94%
The change in estimated median homestead taxable value is an increase of 3.41%
The change in tax on estimated median homestead property is an increase of $18.54 or 1.41%
Background
Pursuant to City Charter and state law, adoption of this ordinance will establish the budget for the 2027 fiscal year. The budget ordinance is based on the proposed budget, as adjusted, and as described in Exhibit A, B and C.
The FY2027 Proposed Budget provided to City Council on July 14, 2026, included $208,727,905 for operations. The proposed budget included the following:
o Property tax revenue estimated at the no-new-revenue tax rate of $0.369,
o A personnel budget for 762.25 positions which is a net addition of 7.75 full time equivalent (FTE) positions (net 7 FTE in General Fund, and 0.75 FTE in the HOT Fund) for the following:
§ Senior Crime Analyst (1.0 FTE) for Police,
§ Two EMTs and two Paramedics (4 FTE) are included to staff the new peak-time ambulance purchased in FY2026,
§ Decrease of a full-time Economic Development Coordinator in Economic Development (-1 FTE),
§ Staffing for the expansion of Camp by the Creek to the West Side of League City
• Twelve seasonal Camp Counselors (2.4 FTE)
• Three seasonal Assistant Camp Directors (0.6 FTE)
§ 0.75 FTE Administrative Assistant for the HOT Fund,
o Reclass Executive Assistant to Budget Analyst/Business Administrator (February 2027),
o Reclass Assistant Director of Public Works - Operations to Director of Public Works (February 2027),
o Reclass Senior Administrative Assistant to Executive Assistant in Streets (February 2027),
o Reclass Acquisitions Specialist to Acquisitions Librarian,
o Reclass Assistant Director of Public Works - Utilities to Director of Public Utilities (February 2027),
o Reclass Senior Administrative Assistant to Executive Assistant in Water Production (February 2027),
o Reclass Lab Supervisor/Pre-Treatment Coordinator to Regulatory Compliance Coordinator,
o Continuation of the reinvestment program,
o Funding for TMRS contribution of 15.83% beginning January 2027 with an additional $200,000 ($150,000 from General Fund and $50,000 from Utility Fund) towards the unfunded liability,
o FY2027 funding in January 2027 cost-of-living increases of 2.25% for civilian employees whose base salary is below $80,000 and cost-of-living increases of 1.75% for civilian employees whose base salary is at or above $80,000 ($665,000),
o Funding in January 2027 for performance-based merit funding of 2% for civilian employees ($665,000),
o Funding of $32,150 ($20,100 in General Fund and $12,050 for Utility Fund) to implement recommendations from HR for parity increases in January 2027 for select positions based on market comparisons for general government employees,
o Funding for 3.5% cost of living and STEP raises for civil service employees,
o Funding for a $2 per hour increase (from $8 to $10 per hour) in premium pay for employees that work any of the 10 recognized City holidays,
o Anticipated increase of $585,000 in Solid Waste over FY2026 year-end estimate due to increased cost of the service and growth in number of households serviced which is offset with refuse collection revenues,
o Funding for a traffic control message board for Streets ($22,700),
o Funding for pavement marking equipment for Streets ($23,000),
o Additional funding of $70,000 in stabilized limestone road surface for Woodcock Street,
o Funding for a mini dump trailer for Park Operations to be split 50/50 with the 4B fund ($6,000),
o Funding for a grounds treatment spreader for Park Operations ($19,000),
o Funding for a replacement event trailer for Park Operations ($11,000),
o Funding for services and equipment to expand Camp by the Creek to the West side of League City ($34,625). This is anticipated to be offset by camp revenues,
o Funding to replace the automated materials handler (AMH) and four self-check machines for the Library ($148,500),
o Funding to upgrade all Police Detective’s digital forensics platforms to NightHawk to consolidate data to a single interface ($7,967),
o Funding to contract a company to compile, interpret, and analyze the Department’s annual racial profiling data in compliance with TCOLE reporting requirements ($2,500),
o Funding to supply medical kits for all Police Patrol vehicles ($7,454),
o Funding for systematic replacement of department-issued handguns for the Police Department ($9,000),
o Funding for BEAST barcoded evidence software for the Police Department ($15,368),
o Funding for consultant assistance with the Fire Department’s ISO study Phase II and Phase III ($39,500),
o Funding three ventilators for EMS ($45,357),
o Funding infusion pumps for EMS ($29,594),
o Funding HR to participate in local career fairs ($1,000),
o Funding to purchase a new fireproof safe for Accounting ($5,000),
o Funding to contract an Ascensus 457 Retirement third party administrator ($6,000).
• Utility Fund:
o Increase of $382,899 in water contract purchases,
o Anticipated reductions to budget due to refining estimates for workers comp ($37,226) and property insurance ($17,715), and an increase in windstorm insurance ($17,454),
o $10.2 million for the CIP cash funding program, which is an increase of $2.2 million from FY2026 to assist with funding the upkeep and expansion of the utility system,
o Increased overhead payment to General Fund for administrative services by $500,000,
o Funding for two Advanced Metering Infrastructure (AMI) receiving towers for Utility Billing to strengthen the City’s AMI communication network ($200,000),
o Funding the Countryside Well and Pump Station fence replacement for Water Production ($20,000),
o Funding a 6-inch mobile pump to replace equipment well beyond its expected service life for Wastewater ($73,054),
o $60,000 to update the Utility Financial Plan and Rate Study,
o Funding for Professional Services for Line Repair to assist with the transition of new leadership within the department ($15,000),
o Funding for an enclosed trailer for Line Repair ($4,700),
o Funding for eight hydraulic jacks to support trench walls during excavation and maintenance activities for Line Repair ($7,800),
o Funding for in-house installation of an asphalt overlay for the Line Repair equipment and material yard ($36,000).
• The Ballpark at League City fund:
o Funding for a bat compression tester for compliance ($1,100),
o Funding for camera equipment for marketing purposes ($2,000),
o Funding stock merchandise for the Team Store ($15,000),
o $40,000 in additional funding for Special Events,
o Funding for backstop netting for all 6 fields ($300,000),
o Funding for replacement ice maker in north restaurant ($20,000),
o Funding to establish an overhead payment to General Fund for administrative services ($300,000),
o Funding to establish The Ballpark Capital Reserve Fund to set aside future funding for the replacement of large capital items for The Ballpark such as outfield walls, turf, field lighting, and roofing ($100,000).
• Chapter 59 Seizure Fund: budgeted based on current cash balance for the following:
o Police Operating Supplies ($100,000),
o Police Investigation Cost ($6,000),
o Training Equipment ($200,000).
• Asset Forfeiture Fund: budgeted based on current cash balance for equipment to expand the digital evidence lab and capability:
o 8 Police vehicles from Capital Replacement list ($684,000),
o 3 vehicles for Police Chiefs ($300,000),
o Hardware for digital forensic lab ($32,780),
o Digital Forensic Software ($71,000),
o Digital Forensics training ($8,000).
• Animal Care Donation Fund:
o Shade sails ($80,000),
o Enrichment garden ($5,000).
• Volunteer Fire Department Donation Fund:
o Volunteer management liability insurance,
o $25,000 for drill field and physical training equipment.
• Fire Mitigation Fees Fund:
o Replacement thermal imagers ($9,200),
o Replacement mattresses and covers ($5,050),
o Replacement station furniture ($22,050),
o Funding to host a dinner for the Galveston County Firefighter’s Association ($1,800).
• 4B Parks Maintenance & Operations Fund: funding for a mini dump trailer for Park Operations to be split 50/50 with the General Fund ($6,000).
• Hotel/Motel Occupancy Tax Fund:
o Funding for a digital visitor center kiosk at League Park ($28,000)
o Funding $50,000 for holiday decorations.
• Public Access Channel Fund:
o Funding for video equipment upgrades ($15,000),
o Studio improvements ($105,000),
o AV upgrade to the Civic Center for televised meetings ($50,000),
o Fiber network connections ($150,000).
• Tree Preservation Fund: funding to purchase trees for Pat Hallisey Park ($300,000).
• Closing out the remaining balances in the HMGP Disaster Recovery and Hurricane Harvey funds to the General Fund.
• Opioid Abatement Fund: funding of $45,464 to partially fund 2 EMTP positions, in the General Fund, assigned to the Mental Health Unit that began in FY2025. These positions will assist in mental health emergencies, substance abuse disorders, de-escalation techniques, and crisis intervention.
• Hurricane Beryl Fund: As reimbursements are received, the Capital Projects funds will be reimbursed up to $2.95 million, and then any remaining fund balance will be transferred to the General Fund.
Changes to the Proposed Operating Budget
City Council held a series of work sessions on July 27th, August 11th and August 25th. As a result of these discussions, the proposed operating budget has been adjusted. The revised appropriation of $208,699,905 is $28,000 less than the July 14th proposed budget of $208,727,905.
At the August 11, 2026 Council meeting, a property tax rate of $0.356505, which is the calculated no-new-revenue rate was proposed.
Changes Discussed at July 27th, and August 11th Workshops:
Exhibit A to the ordinance outlines the operations budget which includes:
Hotel/Motel Tax Fund - decrease of $28,000
• Remove duplicate kiosk funding ($28,000)
Total Changes ($28,000)
CITYWIDE
|
|
FY2027 |
7/27/26 |
FY2027 |
|
|
|
PROPOSED |
WORKSHOP |
BUDGET |
|
|
|
BUDGET |
CHANGES |
1ST READING |
|
|
Exhibit A Operating Budget |
$208,727,905 |
$ (28,000) |
$208,699,905 |
|
|
Exhibit B Capital Budget |
$124,225,824 |
$ - |
$124,225,824 |
|
|
|
$332,953,729 |
$ (28,000) |
$332,925,729 |
|
Second Reading and approval of the Budget
The 2nd reading is scheduled for September 8th. The Charter requires the budget to be approved by at least ten (10) days before the beginning of the fiscal year, which is September 20th.
ATTACHMENTS
• Proposed Ordinance with Exhibits A, B and C