Castle Hills CCPD approves balanced 2026–27 budget, moves to adopt investment policy

The City of Castle Hills Crime Control Prevention District voted to approve its fiscal 2026–27 budget on July 2, adopting a plan that includes a 2.5% cost-of-living adjustment for three detectives and a minimum TMRS employer rate of 15.95%.

City staff explained the revised budget and the changes to salary-related lines. "We went back and added a cost of living adjustment for the 3 detectives that are included in this budget under salary and benefits," a staff member said, adding that the COLA "is programmed as a 2 and a half percent COLA." The staff member said the COLA raised related FICA and TMRS costs.

Board members pressed staff on revenue assumptions. A board member asked how projected 2027 sales tax revenue could appear higher than current-year totals; staff said citywide sales tax collections have been roughly $1.8 million and that CCPD’s estimate is created as a quarter share of the city’s general fund receipts. Staff noted a conservative approach given a recent downward trend and said the district plans an $86,119 transfer from fund balance to reach the $1.7 million CCPD revenue target.

On possible higher interest income, staff reported they had consulted legal counsel about whether CCPD must adopt its own investment policy under the Public Funds Investment Act or may "piggyback" on the city's policy and officers. Legal counsel said investments are governed by chapter 2256 (the Public Funds Investment Act) and that many CCPDs follow the city's investment plan and officers to avoid separate training and administration. Staff noted that placing funds in a pool such as TexPool could produce returns in the "3 and a half percent range," estimating that with a roughly $1 million balance "your interest income ought to be greater than $14,500."

The board directed staff to prepare a formal investment policy and agreed to consider it before October 1 if the board wishes to assume investment authority; staff said if the city performs investments on CCPD’s behalf, the city would provide quarterly reports for CCPD review as required by law.

A board member praised the revised budget. "This is the first time ... in the city of looking down and seeing any balanced budget, and I'm thrilled by that," the member said.

The board approved the budget by voice vote; the chair announced the approval as unanimous. The board set a follow-up meeting for July 23 to consider an investment policy and a purchasing/discretionary threshold policy and to receive the quarterly reports required if the board adopts an investment plan.