Ennis leaders outline conservative budget plan, prioritize 30% reserves and staff retention

City Manager Andrean and Finance Director Stanley Muni told the Ennis City Commission at a special budget workshop on April 7 that staff will take a conservative approach to next year’s budget, recommend maintaining a roughly 30% general‑fund reserve and prioritize wages, training and core services.

Andrean opened the workshop by summarizing the legal and policy framework that will shape the budget, citing the Texas Local Government Code and best practices from the Government Finance Officers Association. "Everything that will ultimately end up in the budget is truly for a public purpose," she said, and urged the commission to be cautious about promising pay increases until more revenue data are available.

The meeting served mainly as an informational workshop; after a prior closed executive session on pending litigation (City of Ennis v. District Partners Limited and related property matters in Ellis County), the commission reconvened and announced no action was necessary.

Finance Director Stanley Muni presented the proposed calendar and early revenue work: departments will launch budget requests April 16, submit by May 8, staff will consolidate a city manager’s draft by May 29, the commission will review a draft June 9, certified appraisal rolls are expected July 25, and the proposed budget would be presented on Aug. 18. Muni described recurring revenues (sales and property tax), enterprise service charges and one‑time sources such as grant funding or debt instruments, and said staff will favor conservative estimates "to better under‑project than over‑project and then have to make adjustments down the line."

Muni showed preliminary numbers indicating a stronger 2026 performance than anticipated and said that staff are projecting about $33,000,000 in general fund revenue for 2027 based on current trends, while warning that sales tax can be volatile. He also estimated 2027 debt service (principal plus interest) at roughly $11.5 million. "We are at the very beginning of our budget process," Muni said as he outlined the assumptions and the need to align full‑time equivalents and service levels to projected revenues.

On reserves and capital, Andrean reiterated staff’s recommendation to maintain a 30% operating reserve to cover emergencies. She explained interfund transfers—using the airport as an example—and noted that GASB accounting requires transfers to be shown as both revenue and expenditure across funds. For capital, staff identified limited one‑time expenditures and emphasized prioritizing projects that deliver the most long‑term value.

On borrowing, Muni described options for financing—revenue bonds, certificates of obligation and general obligation bonds—explaining voter and petition rights for particular instruments and timing constraints. Staff said they would recommend a debt issuance intended to stabilize the city's tax rate; during the presentation Muni referenced both a large borrowing figure and a smaller figure. Staff later characterized a $5,000,000 certificate of obligation as a placeholder to keep the tax rate flat while the city continues planning larger projects, and said the placeholder could be moved to utility needs if warranted by a system‑wide sewer capacity study.

Personnel costs and retention were a central topic. Muni presented preliminary personnel‑cost savings for 2027 of about $2.9 million tied to position eliminations, benefit reductions and lower health‑insurance costs; staff said some savings are one‑time. Commissioners pressed for a documented evaluation process so merit increases can be applied fairly rather than handing out across‑the‑board raises; Andrean said an evaluation form is ready and the rollout will allow for merit adjustments.

During discussion, commissioners stressed prioritizing retention for police, fire and utility workers, improving customer service through better staffing or software tools, and investing in safety improvements for utilities. Staff noted ongoing flow data collection and an upcoming sewer capacity study that will inform specific capital requests.

The workshop closed with staff directed to continue refining projections, complete salary‑survey work and develop a draft budget for the scheduled May and June meetings; no formal votes were taken. The commission adjourned at 8:21 p.m.