Finance and Government Committee - Budget Meeting #1

CITY OF GRAND PRAIRIE FINANCE AND GOVERNMENT COMMITTEE - BUDGET MEETING #1 CITY HALL - COUNCIL BRIEFING ROOM, 300 W. MAIN STREET TUESDAY, JULY 22, 2025 AT 9:00 AM MINUTES CALL TO ORDER Chairman Ezeonu called the meeting to order at 9:00 a.m. PRESENT Chairman Junior Ezeonu Deputy Mayor Pro Tem Kurt G. Johnson Council Member Bessye Adams STAFF PRESENTATIONS 1. Presentation & Discussion on Proposed FY 2025/2026 Operating Budget William A. Hills, City Manager, delivered the opening remarks to the committee, providing an overview of the FY2026 budget and strategy. He noted that the proposed budget is balanced, conservative, and steady. Citywide property values remain strong, allowing the City to maintain service levels, preserve the workforce, remain financially stable, and keep employee health insurance premiums flat. Departments are being supported in managing costs, while fee adjustments are being evaluated where appropriate to improve cost recovery without burdening the General Fund. Mr. Hills emphasized that the City of Grand Prairie is not in crisis because leadership acted early—by adjusting quickly when sales tax trends softened, the City managed growth responsibly and made informed choices without sacrificing services. He also highlighted council priorities and ongoing initiatives, including continued progress on downtown revitalization, advancement of attainable housing projects, including Alice Court, development of an infrastructure master plan to guide long-term investments, reopening of the Densman Clinic and preparation for a potential May 2026 bond election to support needed capital projects and further quality-of-life improvements. In addition to sustaining core services, the City remains focused on managing costs, protecting services, supporting staff, and staying flexible should conditions change. In closing, Mr. Hills stated that the FY2026 budget reflects stability, discipline, and forward thinking. Thao Vo, Director of Management Services gave the overview reviewing the budget calendar, city values and goals, key priorities for city budget, awards and accolades, city snapshot, assumptions, economic drivers, development updates, citywide balanced budget summary, citywide major revenue sources, fund overviews, personnel, next steps and future developments. Council Member Adams inquired whether there would be any increase in employee contributions to insurance rates. Mr. Vo confirmed that there would be no increase. Finance and Government Committee - Budget Meeting #1 – July 22, 2025 Page 1 of 7  Mr. Vo presented the citywide balanced budget summary noting that the balanced budget is adopted by the City Council and authorized by ordinance, where the FY26 budget expenditures are equal to or less than the FY budget revenues. Latifia Coleman, Assistant Director of Management Services gave the overview on property taxes, its terminology, the two components of the tax rate, estimated tax rate benchmarks, estimated budgeted property tax, estimated property tax – values and levy, estimated property tax values – by category, property tax values and rates, property tax exemptions, how current year property taxes are calculated, estimated no new revenue rate, estimated voter approval rate, property tax bill allocation and tax adoption calendar. Council Member Adams asked about the percentage in property protest rate. Ms. Coleman provided a brief summary of the county-level protests. Chairman Ezeonu inquired whether a citywide evaluation would require reducing the tax rate. Ms. Coleman explained that adjustments may be necessary depending on rate movements and assured the committee that staff will remain alert to any significant changes. Chairman Ezeonu asked if reappraisals were down. Mr. Vo noted that many businesses and property owners are requesting reappraisals as they seek savings in a tightening economy. He added that automation improvements are underway to address processing timelines. Staff reported that the estimated budgeted property tax includes revenue from FY2025-26 with a breakdown of values by category, tax rates and exemptions. Chairman Ezeonu asked what the cost would be to the General Fund if the homestead exemption were raised. Ms. Coleman responded that the impact would be approximately $1.5 million dollars. Deputy Mayor Pro Tem Johnson asked for calculations specific to Johnson and Ellis counties. Ms. Coleman noted that she will provide the information to the committee after the meeting. Council Member Adams asked which newspaper would publish the required notices. Ms. Coleman responded that Forth Worth Star Telegram is used and explained why. Mr. Vo added details on the process. Council Member Adams emphasized the importance of ensuring notifications reach all residents. Krystal Crump, Budget Manager, gave an overview of the sales tax, sales tax allocation, and other taxes adding that Parks is currently receiving ½ of the ¼ cent sales tax allocation. Deputy Mayor Pro Tem Johnson requested that dates of when the park venue funding would expire and noted that the Parks allocation has at least another 12 years remaining. Deputy Mayor Pro Tem Johnson suggested considering future options that would prevent reducing the 1/8-cent portion of and potentially redirecting the other 1/8-cent into the street maintenance fund. Ms. Crump explained that any change to the current distribution requires voter approval. Deputy Mayor Pro Tem Johnson expressed concern that many residents do not pay close attention to elections and asked about the possibility of holding a more robust election. Mr. Hills stated that the street maintenance fund is being considered for inclusion in the upcoming bond election. The key would be to divide the fund appropriately, but any adjustment would still require voter approval. Cheryl De Leon, Deputy City Manager, added that her limited availability at this time for adjusting ballot measures. Ms. Crump continued the presentation with an overview of additional revenue categories including the franchise fees, charges for services, license/permits, fines and forfeitures, rent and royalties and intergovernmental revenues. Council Member Adams requested clarification regarding the oil and gas revenues. Mr. Vo provided the explanation. Finance and Government Committee - Budget Meeting #1 – July 22, 2025 Page 2 of 7  Mr. Vo then gave the overview on the fund overviews; General Fund, Debt Service Fund, Enterprise Funds, Special Revenue Funds – Parks, Internal Service Funds and Special Revenue Funds – Other. Council Member Adams inquired about the organic value of media. Claudia Garibay, Communications Director, will provide follow-up information. Council Member Adams also requested clarification regarding the LED upgrades and what portion of the plan they fall under. Megan Mahan, Deputy City Manager, and Jayson Ramirez, Director of General Services, will provide Council Member Adams with the data presented at the recent City Council Development Committee meeting. Chairman Ezeonu suggested creating a graphic for residents to highlight some of the projects the City is undertaking. Ms. Crump noted that staff is working with the Communications Department on a budget video for residents. Council Member Adams commended staff on the debut of the mobile libraries. Chairman Ezeonu asked if the mobile libraries include computers. Peter Sime, Director of Libraries responded that they do and that the units are connected to a hot spot. Chairman Ezeonu also asked if mobile hotspots are still being rented out. Mr. Sime confirmed that they are. In regard to the General Fund Revenues, Major Drives, Council Member Adams asked about the change in interest allocation. Ms. Crump explained that interest has been reallocated to each fund. Council Member Adams requested clarification regarding personnel services, and Chairman Ezeonu asked about the Police Department pay plan. Ms. Crump provided responses to both inquiries. Council Member Adams asked whether City Council goals are budgeted within the General Fund. Mr. Vo and Ms. Crump responded that some are included in the General Fund and others within operating funds. Ms. De Leon added that staff takes City Council goals into account across various funds to provide support. Mr. Vo noted that inclusion depends on the nature of the program, and Ms. De Leon provided additional explanation. Council Member Adams further stated that when reviewing City Council goals, even if not of material outcome, she would like to see them reflected in the budget. She requested that line items identifying where the goals are allocated be included. Ms. Coleman gave the debt service fund overview discussing the purpose of the fund, annual debt payments timeline, debt service fund revenues major drivers, debt service fund expenditures major drivers, debt service fund revenue and expenditures sources, and the debt service fund 2025-2026 proposed budget. Chairman Ezeonu asked for clarification on the transfers in. Ms. Coleman provided this explanation. Chairman Ezeonu called a recess at 10:45 a.m. Chairman Ezeonu called meeting back to order at 10:55 a.m. Ms. Crump presented the enterprise funds overview, working capital airport fund, airport fund overview, highlight, revenues and expenditures major drivers, revenue and expenditures sources, and the 2025-2026 proposed budget. No questions from the committee. Finance and Government Committee - Budget Meeting #1 – July 22, 2025 Page 3 of 7  Ms. Crump presented the solid waste fund overview, highlights and revenues and expenditures major drivers, revenue and expenditures sources, and the 2025-2026 proposed budget. Deputy Mayor Pro Tem Johnson inquired about the allocation for community gardens. Patricia Redfearn, Solid Waste and Recycling Director provided an explanation, noting that each garden receives $2,000 per year. Deputy Mayor Pro Tem Johnson asked how the community as a whole benefit from this allocation. Ms. Redfearn explained that anyone in the community can participate in the gardens. Chairman Ezeonu noted the location of the community garden. Deputy Mayor Pro Tem Johnson suggested that the percentage of produce donated to the community could be increased, with a larger portion going to the food bank rather than solely benefiting the gardeners. Ms. Mahan stated that staff can research how other cities manage their community garden programs to explore potential improvements. Council Member Adams emphasized that community gardens not only provide food but also help bridge gaps in areas without nearby grocery stores and foster overall community wellness. Deputy Mayor Pro Tem Johnson agreed with Council Member Adams and reiterated the suggestion to increase the percentage of produce donated to the community, focusing on broader community benefit. Council Member Adams expressed interest in seeing the program expand. Ms. Mahan noted her support for community gardeners and expressed enthusiasm for potential growth in the program. Ms. Crump presented the stormwater utility fund overview, highlight, revenues and expenditures major drivers, revenue and expenditures sources, and the 2025-2026 proposed budget. Council Member Adams asked whether the stormwater utility fund maintains the city’s watershed. Mr. Vo replied in the affirmative. Ms. Crump presented the water/wastewater fund overview, highlight, revenues and expenditures major drivers, revenue and expenditures sources, and the 2025-2026 proposed budget. Chairman Ezeonu asked about the 7% rate increase and noted that the commercial, residential, and lifeline rates increased by one cent. Mr. Vo acknowledged the increase, and Ms. De Leon and Ms. Mahan added that this information will be presented at the upcoming Council Budget Workshop. Ms. Crump presented the golf fund overview, highlight, revenues and expenditures major drivers, revenue and expenditures sources, and the 2025-2026 proposed budget. Chairman Ezeonu asked for clarifications on the transfers out. Mr. Vo provided this explanation. Ms. Crump presented the special revenue – parks venue fund overview, highlight, revenues and expenditures major drivers, revenue and expenditures sources, and the 2025-2026 proposed budget. Deputy Mayor Pro Tem Johnson inquired about the $1.67 million loss for The Summit. Stephen Bowles, Parks Fiscal Manager, provided clarification regarding the figures. Ms. Mahan noted that staff has been working with a consultant to evaluate The Summit and explore ways to improve its financial performance. Deputy Mayor Pro Tem Johnson commented that both the Ruthe Jackson Center and The Summit are operating at a loss and suggested relocating The Summit or repurposing the building to serve as a revenue generator. Ms. Crump presented the special revenue – lake parks fund overview, highlight, revenues and expenditures major drivers, revenue and expenditures sources, and the 2025-2026 proposed budget. Ms. Mahan noted that the main focus for the upcoming year will be Lynn Creek West. Deputy Mayor Pro Tem Johnson asked if this location is on the opposite side of Lake Ridge. Ray Cerda, Parks, Arts and Recreation Director confirmed and provided an update on the items that need to be added. Council Member Adams thanked staff for implementing the outdoor program. Finance and Government Committee - Budget Meeting #1 – July 22, 2025 Page 4 of 7  Ms. Crump presented the special revenue – prairie lights fund overview, highlight, revenues and expenditures major drivers, revenue and expenditures sources, and the 2025-2026 proposed budget. No questions from the committee. Ms. Crump presented the special revenue –epic and epic waters fund overview, highlight, revenues and expenditures major drivers, revenue and expenditures sources, and the 2025-2026 proposed budget. Deputy Mayor Pro Tem Johnson inquired about a building expenditure in FY2023-2024. Mr. Cerda explained that the expenditure was related to employee pay increases. Ms. Mahan added that only some of the operational changes have been implemented, with additional changes planned for the future. Chairman Ezeonu called a recess for lunch at 11:50 a.m. Chairman Ezeonu called meeting back to order at 1:00 p.m. Ms. Crump presented information on the Internal Service Fund and provided information on the Employee Insurance Fund Human Resources Director Tasha Camacho discussed different programs under review/audit to ensure the wellness initiatives are appropriate. Council Member Adams asked if insurance gives back for wellness. Ms. Camacho noted Blue Cross Blue Shield provides $25K for wellness initiatives. Ms. Crump provided information regarding the Fleet Services Fund, discussed the purpose, the current fund balance at $6.3M and reviewed Fleet Fund highlights. Council Member Adams asked for an update on the number of electric vehicles (EV). Fleet Services Manager Colby Frantz said there were eight Ford F150 Lightnings on order. Chairman Ezeonu asked if the incentives removed by The One Big Beautiful Bill have any affect. Deputy City Manager Cheryl De Leon said at the council’s direction staff will review to recommend what it best. Deputy Mayor Pro Tem Johnson said the EV market is not a good market for purchasing vehicles. Ms. De Leon said staff is looking at use and will continue to find a fit where it makes sense. Ms. Crump reviewed the Risk Management Fund, discussed purpose and noted the fund balance of $5.6M. She then reviewed the Special Revenue Funds as follows: Community Policing – reviewed its purpose and fund balance at $10.8M. She advised it was approved in 2020 for 20 years and discussed major driver expenditures. Ms. Crump reviewed the US Marshals Fund – and the city’s agreement with US Marshals, noting its fund balance at $130,000. She reviewed the Red-Light Safety Fund with a fund balance of $286,000. She said ticket writers are purchased from this fund. Ms. Crump reviewed the Commercial Vehicle Enforcement Fund, its purpose noting its fund balance of $364,000. Chairman Ezeonu asked to confirm if the fund used to enforce no trucks allowed, and Chief Scesney confirmed noting they also used it for a one-time purchase of a drone and scanner. Ms. Crump reviewed the Cable Fund, discussed its purpose, noting its $236,000 fund balance. Ms. Garibay said this fund is used for any purchases for council meetings, or showcasing on our cable channel, but is not used for software. Finance and Government Committee - Budget Meeting #1 – July 22, 2025 Page 5 of 7  Ms. Crump reviewed the Capital Lending Fund, which is generated from oil & gas royalties, its current fund balance of $4.5M. Council Member Adams asked to clarify the one-time non- recurring amount; Management Service Director Thao Vo advised it was a one-time payment for damage at the Airport. Deputy City Manager Megan Mahan advised insurance replaces items of equal quality, but the city replaced it with better quality. Ms. Crump then reviewed the following funds, their purpose and balances: Cemetery fund: purpose; $1.2M fund balance; Cricket Fund - cricket stadium operation to be closed in FY26; $0 fund balance; EpicCentral Fund: supported by rent from restaurants hotels and convention center. Discussed highlights of events held there. Fund balance: $2.2M; Hotel/Motel Fund: current fund balance $5.2M; Municipal Court Funds: (4) are designated for court costs added to tickets and distributed among the funds for their restricted purpose. Fund balance: $217,000; Municipal Court Judicial Efficiency fund; fund balance $47,000; Municipal Court Technology Fund balance $328,000; Municipal Court Truancy Prevention fund balance $215K; Tree Preservation Fund: collects mitigation fees from developers to replace trees removed during development process and plant trees in public spaces, fund balance: $1.1M. Ms. Crump reviewed personnel noting there are a total of 1,918 positions with 1,100 positions in General Fund. Mr. Bowles discussed seasonal positions, supervisor positions and part-time designated positions in the Parks Department. Ms. Coleman discussed the next budget steps, modifying estimates after certified values (property taxes) and the upcoming Budget Workshop on August 14-15, then a public hearing on September 16. She discussed future development, General Obligation projects, a May 2026 GO Bond Election, Issuing Debt and completing projects. Ms. Coleman discussed debt planning key dates timeline, preliminary GO Bond projects for Streets, Community Center, Facilities, Public Safety, Economic Development and Technology. Deputy Mayor Pro Tem Johnson said he appreciates the presentation and those who worked on it noting the projections looks to be spot on. Chairman Ezeonu said he is thankful and wants to highlight the work and to be able to explain to constituents. Council Member Adams said it is important to ensure fiscal capabilities are sound and that we are a good steward to taxpayer dollars, noting she appreciates each individual who looks at the true needs of their department. Mr. Hills said this is the third budget for which he is responsible and highlighted the hard work and dedication of every staff member who worked on it. He advised that though the city is unable to do a cost-of-living increase, the City Manager will recommend a $1000 lump sum payment for full-time employees and a $500 lump sum for part-time employees. EXECUTIVE SESSION No executive session was held. CITIZEN COMMENTS There were no citizen comments. Finance and Government Committee - Budget Meeting #1 – July 22, 2025 Page 6 of 7 ADJOURNMENT Chairman Ezeonu adjourned the meeting at 1:56 p.m. Chairman Junior Ezeonu Finance and Government Committee - Budget Meeting #1 – July 22, 2025 Page 7 of 7