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Clute council reviews FY2025–26 budget as FEMA reimbursements, rising health costs and large capital projects shape options
Summary
City staff presented a draft FY2025–26 budget showing steady overall revenues but significant downside risk tied to outstanding FEMA reimbursements and rising insurance and utility costs; the plan includes a 4% staff COLA, proposed utility rate increases and a long CIP that draws on reserves.
City staff presented a draft fiscal year 2025–26 budget at a July budget workshop that projects citywide revenues of roughly $12–13 million but cautioned the numbers depend on still-pending FEMA reimbursements and policy choices by the council.
The administration’s proposal includes a 4% cost-of-living adjustment for staff, an anticipated 3.5% baseline increase in ad valorem revenues, and an assumption that the city will adopt a property tax rate that increases revenue without triggering a rollback election. Staff said the city has seen an unexpected uptick in sales tax receipts but is still waiting for large FEMA Category B reimbursements that could materially improve the bottom line.
Why it matters: city leaders told the council the budget balances competing needs — personnel costs, a growing deferred capital program and rising operational costs — while preserving reserves if reimbursements arrive. If FEMA money is delayed or denied, staff said the city would face deeper draws on fund balance and would need either spending cuts or revenue increases.
Key elements and assumptions
- Revenues: staff told the council they…
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