Farmers Branch budget briefing flags multi‑million Intech charge and planned water rate increases

Jay Patel, the city’s finance director, presented the FY2026–27 fiscal outlook and told the City Council that staff is preparing a balanced budget amid rising costs and several revenue uncertainties.

Patel said revenues are largely flat going into the budget cycle while expenditures are rising. He called particular attention to a recent change in Intech’s allocation methodology that, he said, rebalanced charges to reflect Farmers Branch’s increased usage of emergency and public-safety systems. "The upcoming year's operating budget will be 5.44 million," Patel said when describing the scale of changes staff must incorporate, and he noted the Intech reallocation produced roughly a $2.6M–$2.8M hit to the city’s operating budget.

The finance director also outlined a multi‑year water and wastewater rate plan the city has programmed to close a growing funding gap for aging infrastructure. Patel said wholesale and treatment costs have risen markedly and that the city has not passed comparable rate increases for about a decade; the proposed plan includes a programmed 12% increase in the upcoming fiscal year (with differing annual increases through FY30) and a 10% senior/disabled discount applied to the utility charge.

Council members pressed staff for more detail. Councilman Neil asked whether Intech’s change was sudden and whether other cities face a similar reallocation; Patel said the change reflects a three‑year rolling average and a board decision that was recently finalized. Councilwoman Bennett asked why court fine revenues had fallen despite higher activity; staff explained allocation and timing differences in revenue recognition and prior-year backlogs. Several members requested that the senior discount be displayed more clearly on resident bills so customers can see the dollar value of the relief.

Patel also reviewed community investments and grants incorporated into the budget, saying the city is managing about $36.9M in active grants and has budgeted contractual commitments for community partners. Council asked staff to provide a clearer breakout of proposed discretionary allocations, including a $40,000 supplemental request tied to Firehouse Theater building improvements.

What happens next: staff will refine revenue estimates after June supplemental values and present a proposed budget by the July 31 target. Council requested follow‑up information from Intech on the usage allocation, a clearer display of senior discounts on utility bills, and itemized bids or estimates for the Firehouse Theater requests.