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Garland officials warn limits on utility transfers could remove roughly $60 million from general fund
Summary
City staff estimated about $60 million in annual transfers from utilities to the general fund and said a hard prohibition on transfers would eliminate roughly 25% of Garland's general fund, imperiling many services; staff called the loss 'devastating and crippling.'
City staff and council members told the Public Affairs Committee that state proposals to restrict transfers of utility revenue to general funds could have a major local fiscal impact. One staffer estimated total transfers from water, wastewater, stormwater and GP&L at about $60,000,000; a council member said the "swap and drop" would solve about $8,000,000, and Matt Watson, assistant city manager, warned that a hard prohibition could remove $60,000,000 in transfers and "would be devastating and crippling."
Speakers emphasized the local dependence on such transfers to fund services not covered by utility enterprise accounts; members noted that police and fire already comprise the majority of the city's budget and that removing transfers would squeeze other discretionary programs. City staff said they would continue to analyze the fiscal structure and advocate amendments in the Legislature.
