City finance staff presented the fiscal year 2025 midyear budget report to the Lewisville City Council on May 19 and asked council to consider a set of midyear supplemental appropriations and related actions included on the meeting agenda.

Presentation highlights: A finance staff member described revenue and expenditure trends through the year‑to‑date close and explained the timing of midyear reporting (March close and April adjustments). Staff reported the adopted operating budget of roughly $137.3 million for FY25 and provided detail fund‑by‑fund: general fund, hotel‑motel fund, grants fund and utility (water/sewer) and drainage funds. Revenue drivers identified included higher‑than‑budgeted building permits and one‑time landfill host fees and greater interest earnings across funds. Staff also noted recalculation refunds from the central appraisal district that reduce expected year‑end property‑tax revenues and flagged sales‑tax audit and corrective actions by the Comptroller as reasons for conservative sales‑tax estimates.

Midyear supplemental and consent actions: Finance staff presented several midyear supplemental appropriations for council consideration later in the meeting (on the consent agenda), including funding drawn from park‑development fees for tree plantings, an upcoming runoff election, asbestos testing and demolition for an acquired Mill Street property, and debt‑service/utility fund adjustments tied to bond issuances carried in arrears. The midyear supplemental items were placed on the consent agenda.

Council action on consent items: Council approved the consent agenda by a single motion, 6‑0. The consent items included two separate ordinances authorizing parametric bond issuances to permit sale of up to $18.1 million in general obligation refunding and improvement bonds and up to $41.6 million in waterworks and sewer system revenue refunding and improvement bonds. The ordinances permit staff to sell the bonds within the next year subject to pricing parameters recommended by the city’s financial adviser. The council also approved two alternative landscaping standards for private projects (Sam’s Club and Starship Bagel) recommended unanimously by the Planning and Zoning Commission.

Other items and next steps: Staff noted that the grants fund did not receive one FEMA SAFER firefighter grant but used budgeted grants funds to cover grants the city did receive; ITS and NIS received cybersecurity and economic mobility grants, respectively. Council also approved a resolution nominating Steve Southwell to the Denco Area 911 board of managers. The finance director said the city’s annual budget workshop on the FY26 proposed budget is scheduled for Aug. 9 and that departments are in the midst of building FY26 requests.

Voting and implementation: The bond parameter ordinances and consent agenda passed unanimously (6‑0). Staff said proceeds will fund approved capital programs (streets, water and sewer extensions, alley replacements, trail projects) and that a portion will refund older bond issues; debt payments connected to last year’s bond issuance are accounted in the current fiscal year and require supplemental appropriations.