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City manager outlines midyear budget amendment, proposes $3.6M placement and one-time purchases for Gun Barrel City
Summary
City Manager Dr. Smith presented the FY2026 midyear budget review on March 17, reporting healthy reserves and proposing short-term investment moves (about $3.6 million into Hilltop/Techstar) plus a list of one-time spending requests including a $25,000 chamber sound upgrade, $30,000 for property cleanups, a $50,000 admin fire vehicle, and mandated police equipment required by House Bill 33.
At a March 17 special meeting, Gun Barrel City’s City Manager Dr. Smith presented the fiscal-year 2026 midyear budget review and a set of recommended one-time purchases.
Financial snapshot: staff presented January 2026 bank balances and reserves, reporting a required 90‑day reserve of $1,400,128, a general fund balance of $431,411.71 available without dipping into the 90‑day reserve, and $376,374.01 carried forward from FY2025. Dr. Smith said the capital improvement fund totaled $935,212, with $719,237 available above the required reserve.
Investment recommendation: Dr. Smith described a plan to temporarily invest portions of the city’s available funds with Hilltop Securities and a Techstar account. "We would end up moving about $3,600,000 into Techstar," he said, adding staff would present current rates at the next meeting and that money could be moved back into operating accounts as needed.
One-time spending requests: staff presented a consolidated list of candidate midyear purchases for council consideration, including: a chamber sound upgrade (approximately $25,000); replacement or reconditioning of conex containers and shelving for records and seized-property storage; a time-clock and scheduling software (~$3,100/year); funding to support property cleanups (staff estimated about $30,000 would significantly reduce the current backlog); a replacement administrative fire vehicle (rough ballpark $50,000, said staff); purchase of six breaching tools and six ballistic shields (described as mandated under House Bill 33 and related Uvalde-act requirements); police building maintenance and remodel items; raincoats for officers (approximately $1,600 for 16); two upgraded police processing computers; and a skid steer for streets and code-enforcement work.
Council questions: members asked how movement between investment and operating accounts would work and whether there are limits or fees. Staff said the proposed investment accounts are fluid and that money can be moved back into operating accounts as needed; staff will confirm fee structures and operational limits before moving funds. Dr. Smith also noted staff will bring more precise quotes and contract language to the April meeting and that a formal budget amendment would be considered at the April 28 council meeting, which requires a majority plus one vote to pass.
What happens next: staff will obtain hard pricing and contract terms and return in early April for council follow-up; a formal vote on the midyear budget amendment is scheduled for the April 28 council meeting.
