The Budget and Fiscal Affairs meeting held on October 7, 2025, in Houston, Harris County, focused on the monthly financial report and upcoming financial transactions, with presentations from the controller's office and the finance working group.

The meeting commenced with Will Jones and Melissa Dabowski presenting the monthly financial report for the period ending August 31, 2025. Jones reported that the general fund is projected to have an ending balance of $356.7 million for fiscal year 2026, which is $17.5 million lower than previous estimates due to reduced revenue projections. Despite this, the fund balance remains significantly above the city's target of 7.5% of total expenditures, indicating a healthy financial position.

Jones noted that the beginning fund balance for FY 2026 is $36.7 million higher than the previous year's ending balance, attributed to year-end adjustments. He confirmed that projections for revenues and expenditures remain unchanged from the prior month, and no changes are expected in the enterprise funds.

Following this, the finance working group presented updates on recent financial transactions, including a summary of the public improvement bond sale conducted on September 15, 2025. The bond sale was successful, with a true interest cost of 3.47%, resulting in approximately $3 million in debt service savings over the life of the bonds. The group highlighted that the transaction was the largest Texas deal in the municipal market that week, allowing for favorable interest rates due to high investor demand.

The meeting also addressed the upcoming expiration of the city's commercial paper program with Barclays Bank. Due to legislative restrictions on Barclays, the city plans to transition to Bank of America for a new three-year commercial paper line, which is expected to offer more favorable pricing.

Council members engaged in discussions regarding the city's financial strategies, including the timing of future bond elections and compliance with financial policies regarding debt service. The meeting concluded with a request from the mayor Pro Tem for the controller's office to explore additional revenue generation strategies used by other cities, setting the stage for further analysis in upcoming presentations.

Overall, the meeting underscored the city's strong financial management and proactive approach to maintaining fiscal health while navigating changes in banking partnerships and exploring new revenue opportunities.