City Council Proposes $34.4M Budget with Tax Increase to Fund Operating Costs

The Glenn Heights City Council convened on September 2, 2025, to discuss the city’s budget for the upcoming fiscal year, focusing on operating funds, capital improvements, and personnel compensation.

The meeting began with a detailed overview of the operating funds, which encompass essential services such as general, water, and sewer operations. The total revenue for these funds is projected at approximately $34.4 million, balanced by expenditures of $34 million, resulting in a modest surplus of about $310,000. The council highlighted the importance of maintaining these funds to cover recurring expenses.

A significant portion of the discussion centered on the capital improvement budget, which outlines ongoing and new projects totaling around $10.3 million. This budget includes funding from various sources, including grants and previously issued bonds. Notable projects include street lighting enhancements and the East Bear Creek expansion.

The proposed tax rate for the upcoming year was set at 56.2795 per $100 assessed valuation, which is expected to generate approximately $10.6 million in property tax revenue. This reflects an increase of about $357,487, or 3.48%, compared to the previous year. The council will ratify this tax increase in a future meeting.

The general fund is projected to have revenues of $14.8 million against expenditures of $14.4 million, yielding a surplus of $362,000. Personnel costs dominate the budget, accounting for approximately 66% of the general fund expenditures. The council noted that the fund balance is expected to exceed $12 million by the end of the fiscal year, providing flexibility for one-time expenses.

Discussions also included personnel compensation, with no increases currently included in the budget. However, the council reviewed options for potential raises, particularly for police and fire personnel, estimating costs ranging from $131,000 to $439,000 depending on the percentage of market adjustment considered.

The council addressed several supplemental requests from departments, prioritizing essential needs while acknowledging budget constraints. Modifications included reducing the number of police vehicles requested from five to three.

In conclusion, the meeting underscored the city’s commitment to maintaining financial stability while addressing critical infrastructure needs and personnel compensation. The council plans to continue discussions on the budget and tax rate in upcoming meetings, ensuring that all aspects are thoroughly evaluated before final decisions are made.