Alice council workshop outlines $14.37 million general fund, warns sales tax drives public-safety funding

City of Alice staff presented the proposed FY 2025–26 general fund at a budget workshop, showing total general fund revenue of $14,369,083 and total expenses of $14,366,490, which staff said would leave a projected surplus of $2,593.

Vanessa, finance staff, told the council: "The total general fund revenue for the proposed is $14,369,083," and said property taxes and sales tax are the largest revenue sources. Staff emphasized that combined police and fire costs—about $7.7 million—exceed the city’s property-tax collections, leaving sales tax to fill the gap.

Council members discussed discretionary cuts and one-time items staff flagged for adjustment, including training travel and election-related professional services if a bond election proceeds. Staff noted a half-cent sales-tax within city limits was estimated to generate about $2.2 million and that monthly sales-tax receipts were budgeted at roughly $558,000 per month, a small increase over the prior year.

Vanessa said staff had shifted the grant-administration function into finance to improve efficiency and that the budget keeps several positions funded even while duties are being reassigned. The council was given a schedule for follow-up workshops; staff said enterprise funds (utility, airport, solid waste and others) would be reviewed in a subsequent session.

The council did not take final action at the workshop. The next scheduled budget workshop will continue review of enterprise funds and allow councilmembers to circle back on items flagged during today’s presentation.