OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Budget and Fiscal Affairs Committee Meeting - June 2, 2026

Committees and CommissionsTuesday, June 2, 2026
BodyHouston, Texas
SessionCommittees and Commissions
DateTuesday, June 2, 2026
StatusFILED
Video Record
0:00 / 1:30:05
Transcript — Verbatim
0:04

Welcome to the June 2nd, 2026 Budget and Fiscal Affairs Committee.

0:09

I am Sally Alcorn Chair, and I am joined today by Mayor Pro Tem Martha Castax Tatum, Vice Mayor Pro Tem Amy Peck, Councilmember Joaquin Martinez, Councilmember Twilight Carter, Councilmember and Vice Chair Mario Castillo, Councilmember Joe Panzarella, Councilmember Julian Ramirez, and staff from Councilmember Tarsha Jackson, Councilmember Mary Nana Huffman, Councilmember Tiffany Thomas, and that is it.

0:38

And Councilmember Pollard has staff here too.

0:41

We will begin this meeting with the monthly financial report.

0:45

So I'll invite the controller's office, represented by Will Jones and Melissa Dubowski, Director of the Finance Department.

0:54

We also have Councilmember Willie Davis in the horseshoe.

0:58

So the floor is yours.

1:08

Can we lay it down?

1:09

Yeah.

1:14

That's good.

1:17

All right.

1:17

Uh good morning, madam chair and members of the committee.

1:20

Thank you for the opportunity to provide the monthly financial report for the period ending April.

1:26

Um, for the general fund, the controller's office is projecting an ending fund balance of 276.5 million or 10.4% of expenditures less debt service and pay as you go for FY26.

1:40

This is 23.5 million lower than the projection of the finance department.

1:44

The difference is due to lower revenue projections than the finance department.

1:48

Based on our current projections, the fund balance will be approximately 77.3 million above the city's target of holding 7.5% of total expenditures, including debt service and pay as you go.

2:02

Based on our current projections, the fund balance will be approximately 76.9 million above the city's.

2:26

Turning to the enterprise funds, we are projecting no changes from previous months amount in the aviation combined utility system convention entertainment and stormwater funds and the dedicated drainage street uh renewal funds for the commercial and paper bonds.

2:43

Um the city's practice has been to maintain no more than 20 percent of the total outstanding debt for each type of debt and a variable rate structure.

2:52

As of April 30th, all outstanding debt is within that threshold.

2:56

Uh thank you very much, and that concludes my report.

2:59

Thank you.

3:00

I do want to welcome Councilmember Tarsha Jackson to the horseshoe colleagues.

3:05

There was a uh monthly financial report delivered to everyone.

3:08

It's the newest one is not online.

3:10

We're seeing so um there are some around if you are looking for it.

3:16

Go ahead.

3:17

Okay, good morning.

3:18

This is the 10 plus two financial report for the period ending April 30th, 2026.

3:22

Fiscal year 26 projections are based on 10 months of actual results and two months of projections.

3:28

There aren't very many changes this month since we uh went through the general appropriations process last month.

3:33

Um so the major change, or it's not even a very major change, but the only change that we're projecting in the general fund is on the revenue side of a hundred thousand dollar change, um, which is a variance from the prior month projection due to an increase of sale of capital assets to reflect higher than anticipated land sales.

3:50

Um for sales tax, we're not making any changes to sales tax at this point, but um just to give an update for uh the month of March receipts.

3:59

Uh we received 89.2 million dollars, which is 4.47% higher than the same period last year, and about uh $7.9 million higher than budget.

4:09

Um, we'll continue to monitor sales tax as it is a volatile source of revenue.

4:14

Um, in order to meet the current estimate of 920 million, the remaining periods need to come in about three percent below prior year.

4:21

So we still think that the projection is a little conservative, but again, we'll continue to monitor.

4:26

Um, on the expenditure side, the expenditure projection remains unchanged compared to the previous month.

4:32

Uh so together with the small change on revenue for sale of capital assets, we're currently projecting the ending fund balance to be 300 million dollars, which is again 100,000 higher than the previous month and represents 11.3 percent of estimated expenditures, not including debt service and pay as you go.

4:50

Um, again, uh concurring with the controller's office, we're not projecting any changes to the enterprise special revenue uh or other funds, and that concludes my report for this month.

5:03

Thank you very much for your report.

5:05

Not much changing in this month's report, so really appreciate your attention to it.

5:10

Uh, I did want to just um I don't see anyone in the queue, but I did want to just uh um director, if you would talk a little bit about item, um it'll be item 14 tomorrow, the annual budget.

5:22

I know we'll be just actually voting on it next week, but uh there's several things within that.

5:27

There's the reorganizing solid waste within um public works, amendings chapter amending chapters nine and two related to solid waste and public works, establishing an admin fee for solid works, authorizing the right-of-way fee in the C US and making the transfers.

5:42

Just that the different facets will all be incorporated in the budget ordinance, correct?

5:48

Sure.

5:48

So all of that will be in the budget ordinance.

5:51

Um there's several items on council tomorrow.

5:53

So it's the budget ordinance.

5:54

We have something called the continuing appropriations item, um, which is related to the budget, then we have three items related to the LGCs of the city that will authorize the transfer funds to those LGCs, and then we have the master bond ordinance that's related.

6:08

So all those items are related to the budget.

6:12

Um tomorrow the plan is to have the public hearing to get additional public input.

6:16

Um that's at nine o'clock tomorrow morning on the budget.

6:20

Um, and then the plan is to have the council members offer your amendments on the table and then tag all of the budget-related items so that we can come back the following week to discuss the amendments in full and take action on the vote on the 10th.

6:35

Great, thank you very much.

6:36

Councilmember Ramirez.

6:38

Thank you, Madam Chair.

6:39

Thank you for both for the presentation.

Discussion Breakdown — Share of Meeting
Fiscal Sustainability██████████████████████████26%
Parks and Recreation██████████████████████████26%
Community Engagement██████████████████████22%
Housing and Community Development██████6%
Environmental Protection██████6%
Engineering And Infrastructure████4%
Public Engagement███3%
Infrastructure██2%
Budget Equity Analysis1%
Summary of Proceedings

Budget and Fiscal Affairs Committee Meeting - June 2, 2026

Chair Sally Alcorn convened the Budget and Fiscal Affairs Committee meeting on June 2, 2026, at 9:00 AM. Members present included Mayor Pro Tem Martha Castax Tatum, Vice Mayor Pro Tem Amy Peck, Councilmembers Joaquin Martinez, Twilight Carter, Mario Castillo (Vice Chair), Joe Panzarella, Julian Ramirez, and staff from Councilmembers Tarsha Jackson, Mary Nana Huffman, Tiffany Thomas, and Pollard. Councilmember Willie Davis was also in attendance. The meeting covered the monthly financial report, upcoming financial transactions, community budget survey results, the annual Kinder Houston Area Survey, and proposed amendments to the open space ordinance.

Monthly Financial Report

  • Controller's Office (Will Jones and Melissa Dubowski, Finance Director) projected a general fund ending balance of $276.5 million (10.4% of expenditures, less debt service and pay-as-you-go) for FY26, which is $23.5 million lower than the finance department's projection. The difference was attributed to lower revenue projections, primarily $16 million from the TURS municipal service charge recalculation (moving from 2017 to 2021 property values).
  • Finance Department projected an ending fund balance of $300 million (11.3% of expenditures), noting a small increase of $100,000 from higher-than-anticipated land sales. Sales tax receipts for March were $89.2 million, 4.47% higher than the same period last year and $7.9 million above budget. The department maintained a conservative sales tax estimate of $920 million, noting remaining periods need to come in about 3% below prior year.
  • Councilmember Julian Ramirez noted the $23.5 million discrepancy between the two projections and inquired about the municipal service fee recalculation. Director Dubowski explained that the fee, previously based on 2017 values, is being brought up to tax year 2021 values, and the revenue impact is now being reflected in the general fund. Councilmember Ramirez suggested a deeper dive into the municipal services fee calculation.
  • Public speaker Doug Smith expressed difficulty understanding the late-fiscal-year projection gap and questioned the practice of holding large unspent balances in the DDSRF. He also pointed out a discrepancy in hotel occupancy tax bond refunding figures ($1.3 billion in refunding bonds vs. $516 million outstanding the prior year).

Upcoming Financial Transactions

  • Melissa Dubowski presented two upcoming transactions:
    1. Tax and Revenue Anticipation Notes (TRANS) Series 2026: An annual short-term borrowing to manage working capital due to timing differences between property tax collections (peaking Dec-Feb) and even expenditures. A competitive sale will be conducted in August, with terms presented to council in July. Closing is planned before the fiscal year-end.
    2. Combined Utility System Commercial Paper Expansion: To fund the capital improvement plan (including East Plant and consent decree projects), the finance working group recommends adding $500 million in capacity. Morgan Stanley was selected as the provider after a request for term sheets. An RCA will be brought to council in July.
  • Chair Alcorn asked whether the new administrative trash fee (expected to generate ~$20 million) could be used as collateral for borrowing. Director Dubowski confirmed it becomes revenue of the combined utility system and can back revenue bonds.
  • Public speaker Dominic Mazat urged more public engagement on the budget, including evening hearings, earlier budget process start (e.g., February), and greater transparency. He supported the Kinder Institute survey but noted the budget process felt "irrational." Councilmember Ramirez agreed with starting public engagement earlier.

Two Cents Budget Survey (Kinder Institute)

  • Presented by Dan Potter (Director, Houston Population Research Center) and research analyst Dylan Simberger. The survey was conducted April 14 – May 27, 2026, with 920 responses via an open-access, convenience sample distributed through meetings, social media, and word-of-mouth. Responses came from all 11 council districts, though participation varied (e.g., District C had high turnout).
  • Key Findings:
    • Top priority for increased spending: Infrastructure (roads, drainage, water pipes, electric grid) – 80% of respondents wanted more spending; 96% opposed cuts.
    • Other high priorities for more spending: Solid waste management and programs addressing homelessness (~60% each).
    • For decreased spending: 25% supported less spending on Houston Police Department; 20% supported less on Houston Fire Department, economic/workforce development, and housing programs.
    • When forced to choose (if budget cuts were necessary): Most respondents were okay with cuts to economic/workforce development (70% okay), but infrastructure was off-limits (only 10% okay with cuts). Parks and recreation had a 50-50 split.
    • Public safety spending (if more must be spent): Top choices were mental health/homelessness programs (70% support more, with 30% wanting "a lot more"), followed by police investigations and patrols (~60% support more).
  • Willingness to pay fees: Only a garbage fee had majority support (two-thirds of respondents). The sweet spot for monthly fee was $5 (half of supporters chose this amount). Other fees (parks, public safety, libraries) did not reach majority support.
  • Councilmember Alcorn noted the survey is a convenience sample, not scientific, but still instructive. Councilmember Thomas highlighted alignment with the Consolidated Annual Action Plan (CDBG). Councilmembers Martinez and others discussed the need to increase fees across departments and to leverage state/federal partners. Councilmember Peck and Flickinger thanked for the data. Councilmember Davis asked about district distribution; Chair Alcorn said the appendix breaks down by district.
  • Public speaker Laura Gallier suggested breaking down infrastructure preferences similarly to public safety (e.g., bike trails vs. health clinics) and criticized the framing of public safety spending as a forced increase. She also noted resistance to the survey from some residents.
  • Public speaker Sarah Raymond criticized the low response rates (29 per district in some cases) and asked about FIFA reimbursement funds used for police special services. Chair Alcorn said they could check.

Kinder Houston Area Survey (45th Annual)

  • Presented by Dan Potter. Survey conducted via the Greater Houston Community Panel with almost 9,000 residents from Fort Bend, Harris, and Montgomery counties (representative sample using incentives). The report focused on economy, environment, and social connections.
  • Economy: Job optimism saw the largest single-year drop ever in Fort Bend and Montgomery counties, and the second-largest in Harris County (behind only 1982-83 oil crisis) – a 29 percentage point decrease. The Houston area added fewer than 20,000 jobs in 2025, well below projected 70,000. The economy was identified as the biggest problem by about 25% of residents, up significantly. Crime/safety, housing cost, and traffic were other top concerns.
  • Environment: Despite a relatively calm 2025 for natural disasters, concern remained high across all income levels for flooding, wind/hail, freeze, and extreme heat. Concerns about contaminants (aging pipes, lead, illegal dumping, clean drinking water) were high, with significant income disparities but still majority concern even among high earners. 70% of residents are moderately to extremely concerned about the environment's effect on their health.
  • Social Connections: The survey explored the benefits of knowing one another, personal/professional networks, and social cohesion. Key example: 91% of Republicans and 97% of Democrats support universal background checks for gun sales (a unifying issue, not divisive as often perceived). Social connections were strongly correlated with greater economic mobility (85% control over finances if connected vs. 36% if not), better physical health (60% good health if high social cohesion vs. 41% if low, comparable to income gaps), and greater perceived safety (83% feel safe walking alone at night if high social cohesion vs. 58% if low). Income did not significantly affect sense of safety after accounting for social cohesion and general feelings of safety.
  • Councilmembers Carter, Alcorn, and others thanked the presenters. No public comments on this item beyond the general public comments already addressed.

Open Space Ordinance Amendments

  • Presented by Planning Director Von Tran and Parks Director Kenneth Allen. The amendments bring the ordinance into compliance with Chapter 212 of the Texas Local Government Code (effective Jan 1, 2024). Key changes:
    • Adopt a lower fee cap (not greater than 2% of median household income).
    • Transition multifamily to fee-only; collect fees at certificate of occupancy; establish an appeal process.
    • Allow up to 30% of fees collected in a sector to be used in other sectors (previously had to stay in the same sector).
    • Extend obligation timeline from 3 to 5 years; transfer fund management authority from Parks Board to Parks Director.
  • The ordinance was approved unanimously by the Planning Commission on May 28, 2026, after a public hearing period with 13 comments – none objecting to the text, but six recommended increasing the fee-in-lieu ($700, unchanged since 2007). Chair Alcorn stated she intends to bring a separate amendment to raise the fee later this summer, after stakeholder engagement. She noted CPI suggests ~$1,113 and appraised values ~$1,400, but state law caps at ~$1,260.
  • Councilmember Ramirez asked about coordination with TIRS districts. Director Allen explained all expenditures require council appropriation and are tracked centrally. The 30% cross-sector flexibility mirrors the sidewalk fee-in-lieu practice. Mayor Pro Tem Castax Tatum confirmed the origin of the 30% figure.
  • Councilmember Martinez supported the changes and raised concern about park maintenance funding (suggested average maintenance per park is ~$1,200). Director Allen noted the fund cannot be used for general maintenance, only new improvements or major replacements. Martinez noted parks like Walter Jones lack programming due to poor facilities.
  • Public speakers:
    • Doug Smith supported but asked for detailed reporting on expenditures; Chair Alcorn noted a report is on her website.
    • Vanessa DeLeon Diaz (Friends of Columbia Tap) highlighted inequities: Sector 14 (Memorial Park) collected over $21 million in developer fees, while east-side sectors with higher poverty collected a fraction. Private conservancy revenue is also skewed: 73% goes to wealthy areas. She urged council to interrupt this cycle.
    • Taylor Valley Presley (Coalition for Environment, Equity, and Resilience) supported the amendments but urged prompt action on raising the $700 fee, unchanged since 2007.
    • Karina Espinosa (Friends of Fonde Park) noted lack of management district in her area and requested a covered area and community center. Councilmember Martinez confirmed Brookline Park is on the list for improvements.

Key Outcomes

  • The committee voted unanimously to advance the open space ordinance amendments favorably to full council. (Motion by Mayor Pro Tem Castax Tatum, voice vote, no dissent.)
  • Chair Alcorn announced a special called meeting on Monday, June 8, 2026, at 10:00 AM to review the proposed FY27-31 Capital Improvement Plan (CIP).
  • No other formal votes were taken; the reports and presentations were informational.
  • The next regular BFA meeting is to be rescheduled due to the July break.

Meeting Transcript

Welcome to the June 2nd, 2026 Budget and Fiscal Affairs Committee. I am Sally Alcorn Chair, and I am joined today by Mayor Pro Tem Martha Castax Tatum, Vice Mayor Pro Tem Amy Peck, Councilmember Joaquin Martinez, Councilmember Twilight Carter, Councilmember and Vice Chair Mario Castillo, Councilmember Joe Panzarella, Councilmember Julian Ramirez, and staff from Councilmember Tarsha Jackson, Councilmember Mary Nana Huffman, Councilmember Tiffany Thomas, and that is it. And Councilmember Pollard has staff here too. We will begin this meeting with the monthly financial report. So I'll invite the controller's office, represented by Will Jones and Melissa Dubowski, Director of the Finance Department. We also have Councilmember Willie Davis in the horseshoe. So the floor is yours. Can we lay it down? Yeah. That's good. All right. Uh good morning, madam chair and members of the committee. Thank you for the opportunity to provide the monthly financial report for the period ending April. Um, for the general fund, the controller's office is projecting an ending fund balance of 276.5 million or 10.4% of expenditures less debt service and pay as you go for FY26. This is 23.5 million lower than the projection of the finance department. The difference is due to lower revenue projections than the finance department. Based on our current projections, the fund balance will be approximately 77.3 million above the city's target of holding 7.5% of total expenditures, including debt service and pay as you go. Based on our current projections, the fund balance will be approximately 76.9 million above the city's. Turning to the enterprise funds, we are projecting no changes from previous months amount in the aviation combined utility system convention entertainment and stormwater funds and the dedicated drainage street uh renewal funds for the commercial and paper bonds. Um the city's practice has been to maintain no more than 20 percent of the total outstanding debt for each type of debt and a variable rate structure. As of April 30th, all outstanding debt is within that threshold. Uh thank you very much, and that concludes my report. Thank you. I do want to welcome Councilmember Tarsha Jackson to the horseshoe colleagues. There was a uh monthly financial report delivered to everyone. It's the newest one is not online. We're seeing so um there are some around if you are looking for it. Go ahead. Okay, good morning. This is the 10 plus two financial report for the period ending April 30th, 2026. Fiscal year 26 projections are based on 10 months of actual results and two months of projections. There aren't very many changes this month since we uh went through the general appropriations process last month. Um so the major change, or it's not even a very major change, but the only change that we're projecting in the general fund is on the revenue side of a hundred thousand dollar change, um, which is a variance from the prior month projection due to an increase of sale of capital assets to reflect higher than anticipated land sales. Um for sales tax, we're not making any changes to sales tax at this point, but um just to give an update for uh the month of March receipts. Uh we received 89.2 million dollars, which is 4.47% higher than the same period last year, and about uh $7.9 million higher than budget. Um, we'll continue to monitor sales tax as it is a volatile source of revenue. Um, in order to meet the current estimate of 920 million, the remaining periods need to come in about three percent below prior year. So we still think that the projection is a little conservative, but again, we'll continue to monitor. Um, on the expenditure side, the expenditure projection remains unchanged compared to the previous month. Uh so together with the small change on revenue for sale of capital assets, we're currently projecting the ending fund balance to be 300 million dollars, which is again 100,000 higher than the previous month and represents 11.3 percent of estimated expenditures, not including debt service and pay as you go. Um, again, uh concurring with the controller's office, we're not projecting any changes to the enterprise special revenue uh or other funds, and that concludes my report for this month. Thank you very much for your report. Not much changing in this month's report, so really appreciate your attention to it. Uh, I did want to just um I don't see anyone in the queue, but I did want to just uh um director, if you would talk a little bit about item, um it'll be item 14 tomorrow, the annual budget. I know we'll be just actually voting on it next week, but uh there's several things within that. There's the reorganizing solid waste within um public works, amendings chapter amending chapters nine and two related to solid waste and public works, establishing an admin fee for solid works, authorizing the right-of-way fee in the C US and making the transfers. Just that the different facets will all be incorporated in the budget ordinance, correct? Sure. So all of that will be in the budget ordinance. Um there's several items on council tomorrow.

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