Administrative and Regulatory Affairs presents FY‑26 budget, highlights retirements and revenue risks

Director Tina Paez of the Administrative and Regulatory Affairs department presented the department’s proposed fiscal 2026 budget and a reorganization plan to the Houston City Council workshop on May 1, outlining personnel changes, one‑time and ongoing savings, and risks tied to declining franchise revenues.

The presentation said ARA will reduce general fund expenditures by about $9.3 million for FY‑26, driven largely by the consolidation of call centers and retirements. "The outcome based budget focuses on strategic objectives of the administration, and we align our programs to those strategic objectives," Paez told council members as she opened the slides on the department’s program and fund breakdowns.

Paez said 83 ARA employees were eligible to retire before April 28; 31 retired on May 1. The department estimates retirement‑related savings in the range reported to finance — roughly $3.3 million to $3.9 million depending on the accounting window — and described additional net savings from operational moves. She told the council that the consolidation of 3‑1‑1 with the Public Works water customer service call center moved staff costs into the central services revolving fund, lowering the general fund burden by nearly $6.8 million and yielding an estimated citywide FY‑26 general fund savings of almost $7…