Gun Barrel City officials met in a budget workshop on June 30 to review draft figures and discuss council priorities for the fiscal year 2026 budget, focusing discussion on staffing, one‑time capital purchases and public‑safety needs.

City Manager Dr. Schmidt opened the session by framing the meeting as an early, high‑level review: "So tonight is early in the process, but we're gonna have a very high level conversation about budget," she said, and asked council to indicate top priorities rather than decide line items. The manager presented year‑to‑date revenue trends, reserve calculations, and a list of department requests pulled out of ongoing operating budgets as one‑time items for council consideration.

The presentation showed sales‑tax collections leveling after post‑pandemic volatility and noted several revenue shifts: increases in fees (permits, park rentals and fines), decreases in residential permits and unpredictable timing from a large vendor that pays intermittently. Dr. Schmidt emphasized the city's constraint of relying heavily on sales tax receipts and highlighted a required 90‑day reserve the administration does not recommend breaching: "You will never hear me recommend to you that you go under that reserve amount." The manager also provided a capital fund snapshot and said the city had set aside funds for the new community center.

Council and staff spent most of the workshop weighing needs against available one‑time funds. Staff estimates for one‑time or near‑term items discussed included: tasers for police (roughly $55,000 total or a multi‑year lease option), replacement or upgrades for in‑vehicle and patrol computing, a weather‑detection / lightning‑warning system for parks (staff cited a roughly $5,000 figure for the device and app), and continued technology and software subscription increases (ArchiveSocial was cited at about $8,000 annually). The city manager said some line items could be paid from special or grant funds when appropriate, and noted $13,000 (approx.) in opioid funds that could be applied to AED purchases for city vehicles and facilities.

Staffing and compensation dominated the discussion. Dr. Schmidt and finance staff outlined an uneven application of previous pay adjustments and presented options including a citywide percentage increase, targeted step adjustments for long‑tenured staff and commissioning a formal salary study. The manager said a salary study had previously been conducted in 2015 and quoted an approximate current cost of $15,000 to commission a new market study. Councilmembers repeatedly identified employee retention and fairness as priorities: "We're a service provider and without people, you can't provide services," one councilmember said, urging action on staffing and wages.

Public safety staffing and equipment needs were prominent. Police department requests on the unfiltered list included pay adjustments, certification pay changes, patrol vehicle replacements and tasers; fire department requests focused on staffing issues, minor exterior repairs and equipment such as mobile devices for apparatus. Staff noted the city will make its final payment on a fire truck in the coming budget year, freeing a recurring payment once the contract ends.

The manager described the budget schedule ahead: proposed budget delivery to council by charter deadline of Aug. 1, departmental reviews in July, public hearings and an ordinance to adopt the tax rate in September if required. She said work on department line items will continue through mid‑July, with detailed department head reviews scheduled before the formal proposal.

Other operational topics included short‑term rental (STR) compliance and enforcement (staff reported 23 approved STRs and 65 unregistered listings that were sent letters with an August 1 registration deadline), grant‑matching approaches, and the upcoming single audit requirement triggered by spending thresholds on grant funds. Staff noted grants management (including use of outside consultants such as GrantWorks where needed) and that some grants require cash matches rather than in‑kind contributions.

No formal motions or votes occurred at the workshop. The session concluded with council direction for staff to continue refining figures, identify funding sources for prioritized items (including grant and special fund opportunities), and return with a proposed budget and supporting detail on or before the chartered Aug. 1 submission.

The city manager and department staff will bring a formal proposed budget to council in August and follow the schedule of workshops and public hearings required by charter and state law.