Bowie lays out FY2027 budget guidance as council debates tax, staffing and capital priorities
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Summary
City staff presented FY2027 budget guidance showing sustained fund-balance strength but rising personnel and operating costs; council asked staff to model the millage rate required to maintain current service levels while exploring nonresidential revenue strategies and police staffing needs.
City finance staff and the city manager presented Bowie's FY2027 budget guidance at the Jan. 5 council meeting, describing the city's financial position, budget development schedule, policy priorities and areas where the council's direction is needed.
Assistant Finance Director Lola Ugurremi said the city exceeded its fund-balance policy, maintained its "AAA"-type bond ratings from major agencies, and showed rising personnel-service costs (she reported 454.7 FTEs at the start of FY2026 and total personnel service costs that grew to about $45 million in 2025). The presentation reviewed revenue and expenditure trends, capital-project funding priorities, and recommended using the capital improvement program as a strategic financing tool, emphasizing pay-as-you-go financing and prudent long-term debt management.
Ugurremi identified two primary decision points for council: setting guidance on streamlining capital project spending in FY2027 and providing direction on the property tax (millage) rate. She noted the city has relied on the unassigned fund balance to smooth operations and cited a declining unassigned balance (about $14 million unassigned at the end of FY2025 on unaudited statements).
City Manager (unnamed in transcript) highlighted inflation and rising equipment costs as key expenditure drivers, and said he will begin departmental budget reviews. Council members discussed priorities: several said they prefer to hold taxes steady while finding revenue alternatives and scrutinizing staffing; council members also asked staff to produce a clear millage analysis showing what rate would be needed to maintain existing services without further use of the fund balance.
Council discussed police staffing, possible expansion of speed camera programs, opportunities from new developments (Millford, Mill Branch Crossing, Southlake), and longer-term revenue options such as annexation or solar leases on city land. The council directed staff to return with modeling and options for the April budget presentation and May adoption schedule.
Next steps: staff will complete departmental reviews, prepare the proposed budget for presentation April 10'15, and provide council with the millage scenarios and specific options to align priorities with resources.
