City manager outlines Farmers Branch proposed balanced budget; council backs higher merit cap and asks for senior water-bill protections

Ben Williamson, city manager, presented the proposed balanced fiscal-year 2025–26 budget to the Farmers Branch City Council on July 15, framing priorities as public safety, infrastructure, economic development and neighborhoods and asking the council for feedback before staff finalizes the proposal.

"What we're looking for is feedback on the budget and to make sure we're not missing any of the council priorities," Williamson said. He described a timetable tied to certification of property tax rules by the appraisal district (DCAD) around July 25 and noted staff would return with a full proposed budget in late July.

Major items highlighted included a plan to add public-safety positions, a facilities assessment, a four-year fleet-replacement approach, expanded street lighting and investments in traffic management. Williamson presented a five-year path for water and wastewater rates that aims to bring rates into market alignment and provide $15 million or more annually for infrastructure replacement; staff said the approach would protect a target water/wastewater fund balance of about $4 million while allowing aggressive capital work.

On compensation, Williamson proposed step adjustments for public safety and a 2% market/merit cap for non-step employees; several councilmembers asked for a higher cap. Councilman Rowland urged a 3% merit cap, citing staff workload and retention: "I want to make sure that they feel appreciated. And I think if I'm putting myself in their shoes, the best way that I feel appreciated is a little bit more money in their pockets." Williamson said the cost difference between 2% and 3% was manageable and estimated a $300,000–$400,000 budget impact.

Council members also discussed specific budget-line items. Several asked for details on insurance and benefits (Williamson said two-year insurance rates had been locked in by council for 2024–25 and that the next procurement would occur in early 2026). Members requested more detail on a proposed $150,000 facilities assessment and a $100,000 placeholder for blockchain/AI evaluation; Williamson said the outside assessments were intended to provide neutral, third-party analysis and to evaluate customer-service and records-access efficiency.

On water-rate equity, Williamson proposed a potential low-income/senior credit structure tied to property-market value instead of income verification. He said staff would propose a criterion based on homes within 5% of the city median value and would consider including disabled residents in eligibility: "The way we've aligned certain programs is we look at the value of the property and we take it at market median at 5%." Council members asked that any assistance be automatic where possible to reduce administrative burden.

Council also discussed using hotel-motel funds for a performance-based sponsorship for the Firehouse Theatre (staff said the sponsorship would be contract-based and in addition to a $20,000 facility-use credit already provided). On fees, staff proposed higher vacant-structure fees and adjustments to fire-inspection fees to better reflect square footage and to encourage remediation.

By the end of the presentation, council members generally signaled support for the identified priorities and for pushing the merit cap to 3% provided the manager demonstrates budget alignment. Williamson said staff would bake that direction into the final proposed budget and return with the complete document and supporting spreadsheets for formal action.