Balch Springs reviews 2026 budget outlook; staff flags tax roll protests and staffing needs

City staff presented an overview of the City of Balch Springs’ proposed fiscal 2025–26 budget at a July 28 council workshop, saying the city will present a formal proposed budget in August and hold public hearings and a tax-rate vote between August and September.

The presentation, given by an unnamed city staff member, outlined revenues and expenditures across the general fund and utility funds, discussed a certified appraisal roll of about $2.2 billion and a projected conservative tax collection rate because of anticipated protest activity, and identified near-term staffing priorities including additional code enforcement coverage, continued multifamily inspections, and a request to consider a pay adjustment at the animal shelter.

City staff said the certified appraisal roll shows a market value near $2.2 billion but noted “large protest activity” that could require returning some revenue. To avoid overestimating revenues, staff said the city will budget using a reduced collection rate for property taxes (staff stated they would “dropping our rate of collection to 68,” down from collection assumptions used last year). Staff also said the city intends to keep the overall tax rate near the current level and will adjust its maintenance-and-operations (M&O) and interest-and-sinking (I&S) components; the presentation referenced a processing assumption of about $0.79 per $100 of taxable value.

The staff presentation reviewed major revenue drivers. Property tax was described as the largest revenue source at roughly 48% of budgeted revenue, with sales tax at about 24% and other finance sources at roughly 13%. Staff showed historical totals for city revenue and collections: total revenues of about $23.2 million in fiscal 2023, $25.9 million in 2024, a budgeted $30.2 million for 2025, and collections to date of about $23.7 million for the current year (figures presented as millions). Sales-tax receipts were shown over time (about $5.3 million in 2020 rising to roughly $7.5 million in 2023, slipping to approximately $7.4 million in 2024, with a year-to-date figure presented as $4.8 million for 2025, and staff noted timing and accrual adjustments that affect month-to-month presentation).

On utility funds, staff said utility revenues and expenses have fluctuated over recent years and reiterated that previously adopted rate increases will take effect in October. Outstanding city debt was summarized by fund (general fund, EDC Type A and B funds, TIF-related debt, and utility-associated debt); staff noted a $13 million issuance referenced in the presentation as affecting future capital and debt service.

Council members and staff discussed scheduling for additional budget workshops. Staff asked whether the council preferred a workshop on Aug. 4 or Aug. 11; the council indicated preference for Aug. 11 and a 5:30 p.m. start time, and staff said they would distribute more detailed materials before that meeting.

Council members raised operational staffing priorities during the workshop. One council member asked about expanding evening or weekend coverage for code enforcement; staff said the city uses rotating schedules and short shifts to cover weekends and field activity and described limits in headcount. A council member suggested dedicating an additional inspector to multifamily (multitenant) inspections if revenue allows; staff said one staff member (Andrea, named in the meeting) is currently dedicated to multifamily inspections. Another council member asked the city to consider a pay adjustment for animal-shelter staff who work weekends and events.

Staff emphasized that several capital projects approved in prior budgets have not started and therefore will shift spending across fiscal years; those timing differences and the pending debt issuance will affect projected fund balance and capital spending in 2026. Staff said the city’s audited ending fund balance was about 38% and that staff will present line-item details, project maps, and capital timelines at the next workshop so council can see how fund balance, debt issuance and project start dates interact with the budget.

There were no formal votes or ordinance readings at the workshop; staff framed the session as informational and preparatory for the August proposed budget presentation and subsequent public hearings and votes.

“If there are no other questions, I guess we’re done for now,” a council member said at the close of the session.

The council scheduled follow-up budget work and a public hearing at the regular September meeting to consider the tax rate and finalize the FY 2025–26 budget.