Gun Barrel City council adopts 2025-26 budget, restores employee raises and holds property tax rate at 0

The City Council of Gun Barrel City adopted the fiscal year 2025-26 budget on Oct. 28, voting to restore step raises for eligible employees and to allocate $25,212 from the capital improvement fund toward a police administration vehicle.

City Manager Dr. Smith, the budget sponsor, told the council the document presented was a proposed budget and reiterated it remained subject to final checks: "it is a proposed budget until it gets approved." He reviewed the strategic priorities that guided the plan and said the process includes additional checks and possible midyear amendments.

City Treasurer Mickey Rainey delivered the year-to-date financial overview through Aug. 30, reporting the city had completed 92% of the fiscal year and describing reserves and revenue performance. "The city has completed 92% or 11 out of 12 months for fiscal year 2025 as of 08/30/2025," Rainey said. Rainey told the council the city's total reserves at the August close were $3,947,482.85 and the 90-day reserve benchmark remained $1,379,130.

Dr. Smith and Rainey described sales tax as the city's primary revenue source and walked the council through restricted funds (street sales tax, hotel-motel, festival fund) and the larger budget picture, including capital improvement priorities. The manager stressed conservative forecasting for sales tax receipts.

A motion to adopt the budget carried with amendments to add employee raises and to reallocate $25,212 from capital improvement to the general fund for a police administrative vehicle. The motion passed by recorded vote with Council Member Evans recorded as opposed.

Council then adopted Ordinance O-2025-015 to fix the tax levy for the 2025-26 fiscal year at 0 percent. Dr. Smith noted the property tax rate must be adopted even when set to 0.

Why this matters: The adopted budget sets city spending priorities for the coming year, funds personnel and equipment requests for public safety, and preserves reserve levels the treasurer says support more than 250 days of operation at current balances. The budget also delineates restricted and special funds so council members and staff can track event, park and hotel-motel spending separately.

What the council voted on (excerpt): the adopted motion included language to provide "one-step raises for all employees who have been employed for 1 year as 10/01/2025, and not currently maxed out on the pay scale," and to allocate $25,212 from capital improvement for the police vehicle. Recorded votes were taken at the meeting and are reflected in the city minutes.

The budget is posted on the city's website, and staff said the treasurer will perform final checks and publish the finalized document following the post-adoption review.