Balch Springs presents preliminary 2025–26 budget, keeps tax rate proposal unchanged

Balch Springs officials presented a preliminary 2025–26 budget at a budget workshop Aug. 11 and said the proposed citywide property tax rate will remain the same as last year while staff continues to refine numbers affected by a recent software conversion and a bond sale.

CFO Miss Tan told the council the document presented was preliminary because the city recently moved its budget system to OpenGov and the migration left “kinks” that must be fixed before officials publish final figures. She said the presentation will be updated for the council’s next meeting on Aug. 25.

“We wanted to ensure that we kept the property tax rate the same as last year, and we did that even though we issued debt,” Miss Tan said. She also demonstrated a new online budget simulation that allows users to increase or decrease department budgets and see in real time how changes affect the city’s projected deficit or surplus. “You can increase it, and it'll show you in real time how that affects your budget,” she said.

Key financial points discussed

- Bond proceeds and fund balance: Staff told the council the city sold bonds this morning; the bond proceeds will be recorded as other financing sources received in fiscal 2025 and therefore will appear in FY2025 fund balance rather than as 2026 revenue. Initial materials show roughly $13 million tied to the bond sale, but staff said final numbers will be adjusted when detailed closing data are received.

- Preliminary totals and one‑time projects: The packet shows an operating budget request in the high‑$20 million range and revenue collections near $30 million, with one‑time capital projects approved by the council raising total spending to roughly $32 million in the materials. Staff said many of the departmental requests are initial submissions and that they will need to make cuts to produce a balanced final budget.

- Revenue assumptions: Staff used a 96% collection rate across scenarios for ad valorem revenue projections so that comparisons are consistent. They also said sales tax projections are trending lower and that staff is being conservative in that line.

- Capital projects and timing: A five‑year project list was included with the packet. Staff cautioned that project cost columns are total project estimates and that some large projects (for example, an illustrative $6 million Spring Oaks project shown in materials) may be spread across two fiscal years; project spending will be refined as staff determines what is feasible in FY2026.

Program and service priorities discussed

Council members and staff discussed the balance of spending across services. Staff observed that public safety accounts for a large share of the current budget — higher than the 42% public‑safety proportion they said would be appropriate for a “good budget” — and that a larger public‑safety share limits spending available for parks, recreation and other programs.

Council discussion also covered the senior center’s meal contract (a line item of about $18,000 in the packet) and options for changing how meals are provided. Council members asked for more detail about department requests so they can see whether increases are driven by personnel, equipment or other needs.

Youth and parks

Several council members raised youth programming and parks maintenance as near‑term priorities. Council members discussed resurrecting or expanding a youth advisory council and suggested small recurring line items to support monthly youth meetings (pizza, supplies) and partnerships with local youth associations for field use. Staff and councilors also noted maintenance gaps — mowing, field upkeep and litter/glass on courts — that have required cancelling practices at city fields.

Staff said the city has pursued partnerships with nearby school districts and outside organizations for field and program support and described tradeoffs between city staff capacity and the cost of contracted maintenance.

Next steps and logistics

Miss Tan said staff will provide an updated budget book with corrected line items and postupdated figures in the OpenGov system before the council’s Aug. 25 meeting. Councilmembers agreed there may be value in a separate workshop before the public hearing to walk through the updated materials in depth. The council discussed holding a workshop the week before Aug. 25 at 6 p.m. if schedules permit.

Formal actions

A motion to adjourn was called and passed at 6:29 p.m.; recorded votes were affirmative from councilmembers present. The packet also indicated staff will set a public hearing on the tax rate for the Aug. 25 meeting and will bring revised budget materials to that meeting for formal consideration.

Why this matters

Decisions this month will determine how one‑time bond proceeds are applied to capital projects and whether city operations make room for increased recreation and youth programming without raising the overall tax rate. Staff cautioned that many line items are initial requests and that the final budget will reflect cuts and updated financing details once OpenGov migration and bond close data are finalized.

Meeting attendance and timing

The budget workshop convened at 5:30 p.m. at Balch Springs City Hall. Several council members were absent at the start; a quorum was present. Staff estimated the meeting would produce an updated budget book by Aug. 25 and possibly an additional workshop the week prior if the council desires further review.