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Today, in a 15-2 vote, city council approved the city’s $6.7 billion Fiscal Year 2025 (FY25) operating budget. When the budget was released on May 14, my team and I got straight to work reading and analyzing the data, asking departments close to 200 questions about proposed spending, and overseeing 23 departmental budget workshops.
Key highlights of the FY25 budget include:
- $187 million drawn down from the city’s ending fund balance to cover existing budget gap in the $3.03 billion General Fund (tax-supported budget)
- Pay increases for police (3.5%) and fire (10% proposed) - municipal employee contract negotiations are currently underway
- $30.6 million for debt service related to the draft proposed firefighter settlement and an additional $10 million increase in firefighter incentive pay
- $36 million to cover the first year of raises in the proposed firefighter collective bargaining agreement
- $11.7 million in General Fund budget reductions to achieve cost savings and efficiencies
- Funding for five police cadet classes and five fire cadet classes; an additional HPD cadet class was added via amendment
- $25 million set aside in the budget stabilization fund to address natural disasters and emergencies
- $135 million transferred from property tax revenue to street and drainage projects, plus $8 million more via amendment
- $475 million in police, fire, and municipal employee pension costs
- Ending General Fund balance of $280 million which is 11% of expenditures less debt, $91 million above the required 7.5% established in the city’s financial policies
The operating budgets of key departments are as follows: 
This year, I proposed five amendments:
- Reduce paper & printing-related expenditures across all funds by 5%, yielding $261,203 in citywide budget savings – PASSED
- Note: this reduction excludes costs for printing/mailing water bills. If you’d like to help eliminate paper usage, you may opt-in for an electronic water bill through your online account, resulting in a discount for the customer of 50 cents per bill.
- Convene a working group with staff from Human Resources, Finance, and Administration and Regulatory Affairs (payroll) to review and update city employee’s vacation and sick leave policies, including the maximum number of hours paid out upon termination. The working group will also explore potential implications of transitioning from a traditional leave program to a paid-time off system – referred to Budget and Fiscal Affairs Committee to convene a working group
- Note: FY25 citywide expenditures for termination pay is $13.8 million. These policies have not been updated by council in over 20 years.
- Establish a fee to be charged to governmental and other local entities using City of Houston-issued Minority/Women Business Enterprise (MWBE) certifications. This fee would assist in covering staff costs associated with the MWBE certification process – referred to joint Budget and Fiscal Affairs/Economic Development Committee
- Note: Governmental and other local entities using city MWBE certification include Harris County, METRO, Port Houston, Houston Community College, HISD, Houston First Corporation, Houston Housing Authority, Fort Bend ISD, and Galveston County. There are additional government agencies and school districts in the nine-county region that also utilize the city’s certification with no revenue generated by the city.
- Transfer $150,000 from General Fund Ending Fund Balance for management consulting services to analyze and explore the feasibility of transferring city animal welfare services, not including animal control, from BARC to a newly formed local government corporation - referred to joint Budget and Fiscal Affairs/Service Delivery Committee
- Appropriate an additional $5 million from General Fund Ending Fund Balance to the Dedicated Drainage and Street Renewal Fund (DDSRF) Ad Valorem – Transfers to Capital Projects – for street and drainage improvements. This year’s YOUR TWO CENTS budget survey results (more below!) prove streets and infrastructure remain a top priority for taxpayers - withdrawn in favor of a substitute amendment offered by Council Members Jackson, Alcorn, and Huffman:
- Street and drainage Infrastructure: Transfer $8 million from General Fund Ending Fund Balance DDSRF Ad Valorem for street and drainage improvements with priority consideration given to Local Drainage Projects. Additionally, HPW shall present to the Service Delivery Committee within 120 days to discuss how they intend to enhance drainage programming and improve reporting of work performed in Houston - PASSED
Here’s a summary of some of the other budget amendments offered by my colleagues today:
- Add a sixth HPD cadet class – PASSED
- Employ a language access coordinator – referred to Quality of Life Committee
- Explore sharing services between city and county library systems – referred to Quality of Life Committee
- Purchase a generator for the Kashmere Gardens Multiservice Center – PASSED
- Report all efficiency studies performed by a city department or City Controller to relevant council committee – PASSED
- Evaluate financial benefits of sharing mowing duties on esplanades, library grounds, and multipurpose center grounds – referred to Government Operations Committee
- A city attorney from the City’s Legal Department will be assigned to handle PROP A council-led agenda items – PASSED
- Eliminate city sick leave match policy – referred to Labor Committee
- Convene a working group to review civic art ordinance – referred to Arts and Culture Committee
- Transfer funds from General Fund Unassigned Fund Balance for police cadet retention pay, HPD employment program for retired officers, 10 additional lieutenant positions – referred to Public Safety Committee
- Reduce non-training related travel expenses by $179,081 – PASSED
- Allocate $350,000 from General Fund Unassigned Fund Balance to restore professional kennel cleaning services at BARC – PASSED
- Review city employee paid parking meter policy – referred to Government Operations Committee
- Establish fees associated with various solid waste functions – referred to joint Budget and Fiscal Affairs/Service Delivery Committee
- Review heavy trash collection program to determine if a reimagined or on-demand service will be more efficient and sustainable for the Solid Waste Department – referred to Service Delivery Committee
- Designate one Department of Neighborhood code enforcement officer to each district council office – withdrawn with assurance from the administration this will be implemented
- Fill vacant code enforcement officer positions in the Department of Neighborhoods with those who will work weekends – withdrawn with assurance from the administration this will be implemented
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