Glenn Heights reviews FY2025-26 budget changes, proposes tax-rate hold and supplemental options; council authorizes mayor to sign Southampton property contract

City Manager Cliff Blackwell returned to the Glenn Heights City Council on Monday to continue discussion of the proposed fiscal year 2025-26 budget and to present supplemental requests and funding options.

Blackwell said the proposed budget was updated to reflect several changes since the council—s August 9 discussion. The presentation included a $2,800,000 EPA grant to fund a groundwater storage tank project; Blackwell said the project also requires a 25% local match of about $900,000, which will show in the grants fund and as a transfer from another fund. He also said the city is accounting for a previously signed agreement (AFA) that obligates the city to contribute $500,000 toward a Dallas County assessment of Southampton Road (the cost to be shared with the city of Desoto and Dallas County).

On operating numbers, Blackwell presented a general-fund revenue projection of about $14.8 million against roughly $14.45 million in proposed expenditures, producing a projected surplus or net position of approximately $362,000. He explained that property taxes account for the majority of general-fund revenue and presented a proposed tax rate that he said would effectively hold the overall rate nearly flat, from 56.5 cents to about 56.3 cents per $100 assessed valuation, a net decrease of roughly 0.39% when combining maintenance-and-operations and debt components.

Blackwell also reviewed major operating and capital funds, noting items such as an increase in electricity and telecommunications costs, a proposed $250,000 one-time contribution for expanded concrete street repairs, and capital items that are contingent on grant funding and outside appropriations. He highlighted a set of supplemental (unfunded) personnel requests across departments—including requests for additional grounds crew positions, dispatchers and a fire marshal—and presented four budget options (A, B, C and D) that mix step increases, one-time purchases and staffing choices. Blackwell said three councilmembers had already provided feedback and asked the full council to return their preferred option via email by Aug. 27 so staff could finalize the budget schedule; he said a draft audit is expected in mid-September.

Council discussion focused on staffing priorities, the timing of step increases, whether step increases are mandatory under city policy, and the adequacy of funding for tree trimming and drainage maintenance. Public-works director Andrew Waits described generator maintenance and load testing needs at city lift stations and said the city had already replaced one VFD and requested budget authority to replace two additional VFDs.

After the council convened in executive session under Texas Government Code sections 551.071 and 551.072 to discuss real-property matters, the council returned to open session and moved to authorize the mayor to sign a contract regarding property located at Southampton, Glenn Heights, Texas. The motion was moved and seconded and passed unanimously, 7-0.

Next steps: Blackwell will email the four budget options to councilmembers and requested final preferences by Aug. 27; staff will confirm whether step increases are automatic under city policy and will proceed with grant-match accounting and any required interfund transfers if the council adopts the recommended items.