Kennedale finance staff presented a draft FY2026 budget on Aug. 5 that proposes a property‑tax rate of 0.6925 per $100 of assessed value (a 0.01‑cent decrease from the current rate in staff’s presentation) and showed a general fund projected net shortfall of about $786,352 in the draft.

Finance Director (presenter) said sales‑tax revenue has grown and now represents a larger share of general‑fund revenue; staff proposed reducing the tax rate modestly while continuing to fund capital needs. The staff presentation included fund‑by‑fund revenue and expenditure summaries, and staff reiterated the city’s written fund‑balance policy that sets a 17% floor and a 25% target for reserves.

Key proposals and dollar highlights discussed by council:

- Project manager (public works): staff proposed a new project‑manager FTE (salary and benefits budgeted at roughly $112,000) to oversee multiple simultaneous infrastructure projects.
- Grant writer/consultant: staff proposed hiring or contracting a grant writer (budget line discussed as $50,000) so the city can pursue external funding. Council members emphasized that a grant program could pay for itself if it secures awards.
- Lift (aerial lift / bucket truck): the Economic Development Corporation and general fund were being asked to share the purchase of an aerial lift; total cost quoted in discussion was about $134,000 with roughly half charged to each fund. Council discussed the operational uses (events, downtown lighting, tree work) and long‑term rental cost savings versus up‑front capital.
- Police patrol vehicle: staff budgeted $80,000 for a police vehicle; councilors discussed holding this purchase until a later amended budget if needed.
- Street lighting pilot: an additional $50,000 was proposed for LED streetlight installations and pilots; council members said the pilot should proceed to test costs and benefits.
- Bridge clean‑out / stormwater: council raised concern about a roughly $100,000‑$200,000 bridge‑cleanout item in the stormwater fund for sediment removal under a new bridge; staff clarified that stormwater funds, not the general fund, would pay that cost.
- Capital replacement and vehicle plan: staff proposed building a vehicle replacement plan and increasing the capital replacement fund to purchase fleet vehicles rather than continuing short‑term leases.

Council discussion and direction: Council members and the city manager discussed options to reduce the general‑fund shortfall without reversing the proposed tax‑rate reduction. Staff told council that a flat tax‑rate (no decrease) would raise roughly $170,000 in revenue; keeping the smaller 0.01 cut was described as a local policy choice to pass savings to property owners. Councilors generally supported keeping at least part of the tax‑rate decrease while asking staff to identify about $200,000 in cuts or deferrals to reduce the shortfall to a level they considered routine based on historical budget variance.

Votes and next steps: The Aug. 5 session was a work session; the council did not adopt the budget that night. Staff said it will return on Aug. 19 with benefit negotiations, final design‑contract details for the sports complex (if approved) and a refined budget; staff will present insurance negotiations and any recommended changes to personnel or capital line items at that time.

Why it matters: The city is balancing a desire to lower property taxes modestly with the need to fund deferred infrastructure work and new operating needs. Council members emphasized preserving capital projects for streets and parks, maintaining reserves consistent with policy, and seeking grant revenue where feasible.

Reporting note: Numbers above (tax rate, shortfall, line‑item dollar figures) are taken from the Aug. 5 Kennedale City Council work session transcript and staff budget presentation; staff and council discussed these figures in detail but no budget adoption occurred on Aug. 5.