ORDINANCE related to the Fiscal Affairs of the City; approving the Annual Budgets of the City of Houston, Texas, for Fiscal Year 2025, including provisions for future adjustment to certain fund balances; making various amendments to the Proposed Budgets; authorizing certain transfers; redesignating a cash reserve in the Fund Balance; establishing a cost for copies of the budget; making other provisions related to the subject; making certain findings related thereto; providing a repealing clause; providing for severability

Beginning May 15, 2024, City Council’s Budget and Fiscal Affairs Committee hosted a series of budget workshops to review and discuss the Fiscal Year 2025 operating budget. The budget was distributed to City Council on May 14, 2024, in accordance with the City Charter and the Texas Local Government Code.  The expenditure operating budget for all funds totals approximately $7.3 billion, which includes a General Fund expenditure budget of approximately $3.0 billion.

The budget ordinance includes the following provisions:

• Approval for budget transfers of up to 5% of a “budget expenditure group” between departments within a fund;

• Approval of the incorporation in the Adopted Budget for FY2025, FY2024, and FY2023 information, and the adjustment of fund balances that may occur as a result;

• Approval to increase the budgets for the Aviation Revenue Fund, but only for transfer to the Airport Improvement Fund, in the event, and to the extent, of unanticipated revenue increases in the Fund as certified by the City Controller;

• Approval to increase the budgets for the Water and Sewer Operating Fund and the Combined Utility System Operating Fund, but only for transfer to the Combined Utility System General Purpose Fund in the event, and to the extent, of unanticipated revenue increases in the Fund as certified by the City Controller;

• Approval to increase the budgets in various Funds to the extent of unanticipated revenue increases in the Fund as certified by the City Controller;

• Approval to charge $35.00 plus tax and postage per set for the purchase of the budget document.

The budget totals include maintenance and operation expenditures, interfund transfers, and operating and capital reserves, as well as planned ending fund balances.  The budget does not include the budgets for the Tax Increment Reinvestment Zones, which will be brought before City Council in a separate action.  The Budget is available for review on the Internet, accessible through the City’s home page located at https://www.houstontx.gov/budget/25budprop/index.html.

The Fiscal Year 2025 Annual Operating Budget is recommended for approval as follows:

_____________________

Melissa Dubowski

Director of Finance

Paula Lichanpanit, Interim Deputy Director

Phone: 832-393-9089