Council gives direction to pursue equipment financing and supports recommended tax rate range for FY 2025–26 budget

City Manager Brent Parker and staff led a work session on the proposed all-funds FY 2025–26 budget on July 8, covering revenue assumptions, staffing requests and capital priorities across multiple funds.

Parker said the budget assumes an 8% increase in sales tax revenue and includes personnel and one-time requests across departments. He noted planned borrowings for roads already scheduled and described an equipment list staff recommended financing through public property financing (certificates of obligation). "If we were to fund all 6.5 million, it would raise the debt side of the tax rate about 1.06¢," Parker said while discussing a proposed group of equipment and infrastructure items.

The items staff identified as candidates for financing included ambulances and medical equipment (LifePak monitors), a replacement Quint aerial apparatus and other heavy equipment, radio consoles and an Opticom/vehicle-detection upgrade for traffic signals (the presentation referenced roughly $900,000 for Opticom detection coverage citywide). Parker and staff explained the financing option matches multi-year lifespans of the purchases and spreads costs over time.

Council members asked detailed questions about specific items, timing and trade-offs between cash funding and borrowing. Several council members expressed support for proceeding with the recommended certificates-of-obligation (PPFCO) approach and for the staff's tax-rate recommendation while reserving the right to raise questions as final numbers are provided:

- Councilman Dave Strang: "I will support it." (council direction to staff) - Councilman Sid Huber: supported moving forward - Councilman David R. Duke: supported moving forward - Councilman Todd Pickens: supported moving forward - Councilman Scott Williams: supported moving forward

Staff said the proposed financing would not affect the tax rate until the later issuance; some planned debt issuances for road projects are already scheduled across fiscal years. The staff presentation also covered utility fund projections tied to proposed water and sewer rate increases, parks and recreation staffing changes, and potential dispatch-service contracts that could add paid dispatcher positions offset by partner reimbursements.

Why it matters: The council's guidance on financing and the tax-rate approach will shape capital purchases and the city's fiscal plan for the next several years; issuing certificates of obligation spreads cost but raises debt service in future budgets.

What happened next: Council members gave staff direction to move forward with the recommended PPFCO financing for the listed equipment and expressed support for the tax-rate recommendation; staff will return with final numbers and any required ordinance or bond authorization for future council action.

Looking ahead: Staff said certified property values and final sales-tax figures arriving later in July will determine final tax-rate calculations and any required voter-approval detail; council retains the ability to change the budget before final adoption.