Good evening,

welcome to another personal city council work session.

It is 5 30 pm now called Monday, June 8, 2026.

City Council work session to order.

According to City Council's present, the meeting is simply posted in ports with Texas and Servicing Code.

Let the record show that Council member Roberts is absent.

Items listed for the discussion on the work session agenda, provide an opportunity for the city council to discuss the items and receiving information from the staff.

So during the public consortium of the regular meeting, we need to the first item.

Uh council gives give you all the opportunity to ask you questions on the items of the regular agenda that the council has not had a clarification on at this time.

Seeing none I'll move on.

This

cool year 2027 budget background context.

Good afternoon, Council.

So

as we prepare for in-depth budget and tax rate conversations later this summer, that may be helpful to provide some background context heading into the fiscal year 27 proposed budget.

In

this presentation, I'll start with an overview of the city's funds and what each fund can be used for before providing an overview of tax rate and fund balance changes over the past three fiscal years.

We'll then introduce a long-term financial forecast that staff have developed for the general fund before concluding with a discussion on next apps in the budget process.

So the

city's funds fall into two categories operating, which are addressed in the annual operating budget, and capital funds, which are addressed in the capital budget.

City has 23 operating funds, of which four of those are internal service funds.

In other words, those are funds that provide services to other funds within the organization.

Those internal service funds are facilities, fleet and information technology, and self assurance.

Operating funds are budgeted for a period of one year and must be balanced for adoption, meaning revenues are equal to expenditures.

City also has 16 capital funds, which are organized into nine different categories of projects.

Given the large and complex nature of these projects, they often stretch beyond a one-year time period, therefore these budgets do not expire annually.

Capital budgets are funded through a mix of funding from outside agencies, cash reserves, transfers from operating funds, and debt issuance.

This

slide provides information on the relative size of all of our operating funds, with the exception of the nine special revenue funds which are bundled together for the purposes of this graphic.

City's largest funds are the general fund, utility fund, debt service fund, park fund, and CCD

fund.

While I will not lock individually through each fund in the city, I did want to cover a few starting with the general fund.

The

general fund is the largest, most flexible fund of the city and include funding for most city departments.

Property tax, sales tax, and franchise fees make up the largest revenue sources, which support public safety, community development, public works, culture and recreation functions, which include our library, and general government.

Next

is the debt service fund, which is used for annual debt payments.

This fund is predominantly funded through the I and S portion of the property tax rate, with some additional revenue transferred in from other funds for self-supporting debt.

In other words, debt for funds like the drainage utility, which do not require support from the tax rate to cover long-term infrastructure investment expenses.

The next

fund I'll cover is the parks fund, which counts for the one half cent sales tax adopted by voters in 1992.

This

fund also accounts for NRH center activities, with approximately 30% of the funds revenue coming from the NRH

center.

Major expenditures within the parks fund are capital project investments, and our H center operations and parks and public grounds maintenance.

Next

is the crime control and prevention district fund, also known as the CCD fund.

This fund counts for the half-cent sales tax adopted by voters in 1996 and reauthorized twice since that time.

This

fund is exclusively used for crime prevention and control and drives most of its revenue from sales tax, with approximately 13% of revenue coming from a cost sharing agreement with the BISD for NRH school resource officers and campus officers.

Major expenditures include uniform control, community resources, and investigations.

The

city's utility fund, as the name implies, accounts for water and series total revenues and expenses.

Excuse me, the utility fund is an enterprise fund, meaning it functions as a self-contained business.

Water and sewer charges make up the majority of the funds' revenue while water and sewer treatment agreements with the Trinity River Authority and the City of Fort Worth make up the majority of expenditures.

The

aquatic

part fund accounts for NRHO revenues and expenses, and this fund also functions as an enterprise fund.

Admissions, food and merchant by sales make up the majority of revenues, while maintenance and other park operations make up the majority of expenditures.

The final