Title
Approving an ordinance on first and final reading with the caption reading: An ordinance of the City of Pflugerville, Texas, adopting the first amendment to the FY26 Budget for the City of Pflugerville; and providing an effective date.
Summary
Per City Charter, section 9.04 (a), City Council may approve supplemental appropriations where there are revenues available for appropriation in excess of those estimated in the budget.
Per City Charter, section 9.04 (d) At any time during the fiscal year the manager may transfer part or all of any unencumbered appropriation balance among programs within a department, division, or office. Upon written request by the manager, the council by ordinance may transfer part or all of any unencumbered appropriation balance from one department, office, or agency to another.
This first amendment is the amend the appropriations to cover the items that were encumbered and budgeted for in FY25 but were not received or services completed by the end of the fiscal year.
General Fund: This amendment is necessary to appropriate the funds associated with FY25 budgeted items that were not completed or received before the end of the fiscal year. The commitment to purchase has already been given and the unused FY25 budget amount has been rolled into FY25 ending fund balance. These carryover amounts will be using available fund balance. The explanation for each amendment is included on Exhibit A.
Total additional expense appropriations needed is $672,031 coming from available fund balance. Preliminary estimates are that FY26 will have a 31% ending fund balance reserve.
Water Wastewater Fund: This amendment is necessary to appropriate the funds associated with FY5 budgeted items that were not completed or received before the end of the fiscal year. The commitment to purchase has already been given and the unused FY25 budget amount has been rolled into FY25 ending fund balance. These carryover amounts will be using available fund balance. This amendment also includes several transfer items to a new Utility Debt Service Fund to better track funds that are available for debt service. The detail of the transfer amount is below under the Utility Debt Service Fund section. The explanation for each amendment is included in Exhibit A.
Total additional expense appropriations needed is $12,628,889, all from available fund balance.
Utility Debt Service Fund (New)
This is a new fund established to track funds available and restricted for debt service. This will take debt out of the Water Wastewater Fund, making it clearer to see the extra amount available for debt service as this liability goes.The initial amounts being transferred are as follows:
FY26 budgeted debt service amount $33,722,605
Impact Fees transferred in FY25 $ 6,300,000
Funds set aside to meet TWDB reserve requirement $ 5,980,600 (this includes the requirement calculated through 9/30/26)
$46,003,205
Hotel Occupancy Tax Fund
There were several outstanding art commitments at the end of FY25 that need to be re-appropriated for FY26.
Prior City Council Action
City Council approved FY26 Budget September 9, 2025
Deadline for City Council Action
Action is requested January 13, 2026 to amend appropriations for FY26.
Funding Expected: Revenue __ Expenditure _X_ N/A __
Budgeted Item: Yes _X_ No __ N/A __
Amount: _by fund listed above_______
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A _X_ Required __ Date Completed: ___________
Supporting documents attached:
FY26 Budget Amendment Ordinance
Exhibit A
Recommended Action
Approve an ordinance on first and final reading with the caption reading: An ordinance of the City of Pflugerville, Texas, adopting the first amendment to the FY26 Budget for the City of Pflugerville; and providing an effective date.