Pearland staff present FY25 budget amendments; council advances first reading
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Summary
City staff presented a mid‑year budget amendment (Amendment No. 2) that updates FY25 revenue and expenditure projections, recognizes a one‑time MUD payment and reallocates transfers and capital outlay; council approved the ordinance on first reading and scheduled further budget dates.
City staff presented Budget Amendment No. 2 for fiscal 2025 at the May 19 Pearland City Council meeting, explaining revenue and expenditure adjustments and transfers that update year‑end forecasts and set the starting point for FY26 planning.
Finance staff reported an increase in general‑fund miscellaneous revenue tied to a one‑time payment from Municipal Utility District 16 of about $1.1 million; total general‑fund projected revenue for FY25 is $127.4 million against projected expenditures of $129.5 million, staff said. The amendment increases transfers out to resolve a Coronavirus Relief Fund deficit ($1.4 million) and raises annual contributions to capital holding funds for IT and facilities from $250,000 to $500,000 to create a sustainable fund balance.
In enterprise funds, staff reported higher revenue projections tied to winter weather effects and recognized a roughly $3.5 million cost at Reflection Bay that will be covered from enterprise operating budgets and then returned to those funds through this amendment. Special revenue changes include a $700,000 proposed allocation in the tree trust fund for land acquisition and smaller, targeted appropriations from donation and federal/state seizure funds.
City Budget & Management staff projected the general fund would finish FY25 at about 93 days of fund balance — slightly above the city policy minimum — and recommended proceeding with the amendment. Staff also outlined next steps in the budget calendar: a second reading of the budget amendment on June 9, a comprehensive CIP workshop June 20, and the start of FY26 discussions on July 14.
Council approved the first reading of the ordinance to adopt the amendment; staff will return with the second reading and continue fiscal‑year‑end forecasting before FY26 deliberations.
