Balcones Heights council reviews FY2027 budget, flags police and fire staffing and rising legal costs

Balcones Heights — City staff presented a line-by-line preliminary budget for fiscal year 2027 at a council workshop, reporting a general fund balance of $5,755,130 and a projected shortfall of $165,380 that the council must address before adoption.

Maria, the staff presenter, told the council total payroll for next year is $5,000,403.97, a 13.7% increase from the prior year that she said results largely from positions that had been held vacant in the prior budget year and are now being filled. "We're over by 165,380," Maria said, urging council members to suggest cuts or revenue increases to reach a balanced budget.

Why it matters: payroll and personnel decisions make up the lion's share of the proposed spending. Council members sought detail about which costs are one-time, reimbursable by grants, or ongoing obligations that would affect the city's fiscal stance in future years.

Police, grants and staffing

Councilman Hernandez pressed staff on the police department increase, asking whether the jump was payroll-related. Chief Marroquin explained some positions were intentionally left vacant in the previous year and are now filled, which inflates the FY27 payroll line. The chief described monthly call volumes and staffing stress: "On average, an arrest takes an officer approximately 4 hours," he said, and added the department is averaging 1,800 to 2,000 calls monthly with some shifts handled by only two officers.

The chief said he is requesting one additional officer and is seeking comparative data from neighboring cities and recent salary surveys to justify any long-term additions. He also noted participation in state STEP programs and other grants that reimburse officer time, which temporarily increases citation and fine revenue during program windows.

Fire staffing and FEMA SAFER grant

The fire chief said the department has applied for a FEMA SAFER grant to fund three firefighter positions; if awarded, the grant would cover 75% of salaries in years one and two and 35% in year three, giving the city time to absorb new recurring costs. Council members expressed concern about recent terminations in the fire ranks and requested documentation showing the rationale and any projected savings.

Legal costs and other pressures

Maria warned that legal services expenses are likely to rise because of ongoing litigation and numerous open-records requests tied to an active lawsuit involving the mayor. Staff estimated pandemic-era legal work and the lawsuit-related requests could push legal costs toward $130,000–$150,000 next year, above the $90,000 line in the proposed budget.

Capital projects and grants

Staff reported approximately $1 million in capital project funds on hand to cover engineering and land acquisition costs for the Hillcrest project, with construction estimates ranging from $3 million to $5 million and the likely need for a future certificate of obligation to fund construction. Separately, the city received a $500,000 park grant award that will require a roughly 50/50 local match (staff noted the maximum match structure for some awards can be 80/20 depending on final award amounts).

Process and next steps

Council members requested a more detailed event-by-event breakdown for council expenditures (several special events this year drove spending beyond the small line item in the current budget), a new salary-comparison study that benchmarks by both population and daily traffic, and a projection of how incoming grant-funded positions will affect the budget two to four years out. Staff said an integrated court-and-finance system will go live next year to reduce missed allocations from ticketing and fines.

Adjournment

After the line-by-line review and questions, Councilman Hernandez moved to adjourn; Chief Marroquin seconded the motion and the chair declared the meeting adjourned. The council did not take any final votes on budget adoption at the workshop.

What the council asked for next: a full packet for the next workshop, event expense breakdowns, the requested salary surveys and documentation related to the recent terminations and any litigation-related legal-cost projections.