City Finances

Why This Page Exists

Texas law says that on final approval of a city budget, the governing body shall:

“(1) file the budget with the municipal clerk; and (2) if the municipality maintains an Internet website, take action to ensure that: (A) a copy of the budget, including the cover page, is posted on the website; and (B) the record vote described by Section 102.007(d)(2) is posted on the website at least until the first anniversary of the date the budget is adopted.” (Tex. Loc. Gov’t Code §102.008(a))

The proposed budget gets the same treatment: “The proposed budget shall be available for inspection by any person. If the municipality maintains an Internet website, the municipal clerk shall take action to ensure that the proposed budget is posted on the website.” (§102.005(c))

We are not the City. We do maintain a website. So here are the budget pages we hold.

The Budget

We hold no adopted budget for any year. If the City has one, it is welcome to send it.

• At the October 6, 2026 special session the Council was told: “Council did not adopt the fiscal year 2026-2027 budget by September 30.” (meeting video)
• At the October 20, 2026 regular meeting the City Attorney said: “The council did not and has not adopted the proposed budget either at that meeting or since.” (meeting video)

FY2027 (October 1, 2026 – September 30, 2027): the amended proposal

We hold three pages of the “FY2027 AMENDED PROPOSED MUNICIPAL BUDGET,” signed by the Mayor with the date line blank (view the pages).

• Under the heading “Balanced funding plan”: “The amended budget provides $767,863.89 in operating revenue and $804,545.69 in operating expenditures. It uses $38,792.80 of identified beginning operating fund balance” (page 1).
• “The budget continues to provide $42,000 for the IRS payroll-tax payment agreement and $70,440 for USDA loan payments. Historical obligation amounts are identified as reference balances only where a current creditor payoff balance has not been verified.” (page 1)
• The “Budget Adoption and Filing Record” lists five actions: public hearing date, budget adoption date, tax-rate adoption date, record vote, and “Approved budget filed and posted.” Every box is empty (page 3).

The Police Department lines on the General Fund expenditure page (page 2), as printed:

FY2025–26: the proposal prepared by City Administration

“Proposed City Budget FOR THE FISCAL YEAR 2025 - 2026, Prepared by: City Administration,” updated August 29, 2025 (view the pages we hold). Its security statement says: “If you receive this document in error, please do not read, copy, or disseminate it” (page 3). It is a public record. Please read it.

Sources: page 10 (totals), page 8 (USDA, IRS, payroll), page 6 (sewer). So the proposal raised the tax rate by 40 percent and still budgeted $74,031.96 more in expenses than in income.

The tax-rate page says the budget “will raise more revenue from property taxes than last year’s budget by an amount of $0.309854 (1.083993 – 0.774139 = 0.309854) per $100, which is a ($0.309854 / 0.774139 = 0.400256) 40.0256 percent increase from last year’s budget,” and that “The property tax revenue to be raised from new property added to the tax roll this year is (1.083993 per $100 x $1,084,390.00 in New Taxable Value =) 1,175471.17” (page 5). By our arithmetic, $1,084,390.00 at $1.083993 per $100 is $11,754.71.

What the City Owes

Where the loan came from

Resolution 2020-003 says the City “has issued and there are currently outstanding the City’s Combination Tax and Revenue Certificates of Obligation, Series 2005,” which “were sold to the United State of America acting by and through its agency, the Rural Utilities Service” (Res. No. 2020-003; our copy’s day and month are blank). Ordinance 2023-05-31.6 calls it “City Ordinance No. 05-103 (‘City’s debt contract’)” (Ord. No. 2023-05-31.6). We do not hold Ordinance 05-103. A USDA official told the Council the loan was originated “back in 2007,” with “a grant of 500,000 at that time as well,” and that the current payment is “a reduced monthly payment, which is around $1,800” (July 22, 2026, about 0:29–0:30).

What has been paid

“From 2007 to January 1 of 2025,” the City “has paid the USDA $899,493.13,” and “over $800,000 was interest, and only $63,000” (June 17, 2025 regular meeting, 0:05:47 and 0:10:43). The story is in City News.

Where the loan stands

• “Because the city is unable to refund its USDA debt, it is not eligible to receive grants. Without grants, the roads and other infrastructure needs cannot be addressed or improved.” The City Attorney, October 21, 2025 regular meeting (0:10:26).
• “Right now, this delinquency is preventing [the City] from applying and obtaining other federal funding.” A USDA official, July 22, 2026 (about 0:31).
• Notes of a March 10, 2026 USDA meeting read to the Council say the City is “on a non-compliance list” (Reported Issues).

The balance sheet

On the City’s USDA balance sheet as of September 30, 2024, “Total Assets” are $2,284,038.12 and “Total Liabilities and Equity” are $2,295,137.79 (page 3). On a balance sheet those two lines are supposed to be equal. These are $11,099.67 apart. The form is certified correct.

The same form set reports 198 sewer users and, under “HEALTH CARE BORROWERS ONLY,” a “Percentage of occupancy” of “-2147483648 %” (page 2). The City is not a health care borrower.

The Tax Rate

Tax year 2025 (fiscal 2025–26): $0.774139 per $100 of value: $0.644185 for maintenance and operations and $0.129954 for debt (Hunt County Tax Office, 2025 tax rates listing). The Council did not set it. The City Attorney reported that “the council did not pass a valid tax rate on September 10th September 16th or September 19th,” and that the rate was then set by an order the Mayor signed and the Council ratified on October 6, 2025 (October 21, 2025, 0:03:10–0:06:08). We hold a copy of that order; it is not posted here.

Tax year 2026 (fiscal 2026–27): the City’s worksheet gives a no-new-revenue rate of $0.794903 and a voter-approval rate of $1.142014 (2026 worksheet, page 11). At the October 6, 2026 special session the Council was told: “Council also did not timely adopt a tax year 2026 ad valorem tax rate,” and that under Tax Code section 26.05(c) “The lower rate is therefore 0.774139” (meeting video).

The county’s five-year history, as printed (Hunt County Truth in Taxation Summary, page 2):

Whatever the rate is, it may only go one way: the Council “shall increase the rate or rates of, but shall not decrease, City’s utilities and taxes” (Ord. No. 2023-05-31.6, §6; unsigned copy).

Sewer and Trash

The combined wastewater and trash charge is on the Fee Schedule: $141.00 a month since the Council raised it from $80.25 on July 16, 2019. The FY2025–26 proposal budgets $263,000.00 in current sewer income (page 6), from 198 sewer users (USDA form, page 2).

On what comes next, the City Attorney told the Council: “The next sewer rate study is expected to substantially increase sewer payments to meet these costs” (October 21, 2025, 0:12:02).

Audits

We hold no audit and no annual financial report of the City for any year. If the City has one, it is welcome to send it.

Finance Records Posted Here