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Commission ratifies budget adjustments after staff review; finance leaders flag 160 transfers in FY26
Summary
City finance staff presented and the commission approved a package of budget amendments and a ratification ordinance July 1 after finding 160 journal adjustments in FY26, 40 of which should have had prior commission approval; staff said an apparent 10-month funding oversight in the adopted FY25–26 budget drove some changes.
The Texas City Commission on July 1 approved multiple budget amendments and an ordinance ratifying budget adjustments made prior to July 1, a set of actions staff said were necessary to keep city operations funded through the fiscal year.
Finance director Rich Boyd (referred to in meeting materials as Miss Boyd) told the commission that 160 budget adjustment journals — transfers and amendments — had been recorded in fiscal year 2026; 40 of those transfers met the criteria requiring prior commission approval. Department heads reported that, for unclear reasons, the FY25–26 budget had been processed as a 10-month funding plan rather than a standard 12-month budget, producing a need for corrective amendments to pay vendors and cover payroll in the final months of the fiscal cycle.
"We need to approve money for these last two months," Boyd said, explaining that corrective amendments will be covered by increased general fund revenue and various fund balances. Staff noted property tax revenue to June 17 exceeded original budgeted estimates by about $4.4 million, which will offset many of the adjustments.
Commissioners expressed concern about the irregularities and called for further review. Commissioner Brian Gets asked whether the discrepancy was a mistake or a deliberate presentation to show flat revenues; several commissioners said they have requested records of the budget workshop process and that an investigative review or audit follow.
The commission approved multiple ordinances and budget amendments, including EDC-related transfers and a ratification ordinance (2026-24) that documents budget adjustments already made. City staff said the measures are intended to stabilize operations and will be included in audit reviews.
Commissioners and staff said they will continue follow-up work to explain how the partial-year funding occurred and to improve internal controls over transfers and amendments. The commission asked staff to provide records and further briefings to clarify decision points from the September 2025 budget process.
