The Houston City Council approved the 2025 operating budget Monday (Dec. 30). Here is a look at the city’s proposed operations for the year from the guiding document.
The estimated deficit for 2025 is $384,000, largely due to planned costs for utility pole replacements.
The city budget consists of a general fund – which includes property, motor and sales tax revenue, grant funds and other various incomes such as court and utility fees. Eight other fund accounts exist, including the Water and Sewer Fund, Electric Fund, Fiber Department, Park Sales Tax Fund, Police Sales Tax Fund, Fire Sales Tax Fund, Cemetery Fund and Capital Improvement District Fund.
GENERAL FUND EXPECTED TO LOSE $665,725
Estimated revenues for the 2025 General Fund include property tax, $100,000; state motor tax, $102,000; sales tax, $2,541,000; grants, $27,000; and other income (solid waste collection, court and utility fees, reimbursements, etc.), $951,000. Total revenues for the fund are estimated at $3,721,000.
Expenditures are estimated at $4,386,725. That total includes spending from 12 departments: administration, legal, maintenance, transportation, police, public grounds, airport, fire, trash/recycling, parks, swimming pool and golf course. Significant capital improvements include upgrades to the city’s splash pad ($55,000) and road resurfacing ($185,000).
WATER/SEWER AND ELECTRIC FUNDS ESTIMATED TO PROFIT $639,265
The Water and Sewer Fund is projected to profit $226,014.72 based on $1,398,600 in revenues and $1,172,585.28 in expenditures. Revenues reflect an $89,050 increase from 2024.
The Electric Fund is expected to make $413,250 based on $4,523,250 in revenues and $4,110,000 in expenditures. Significant expenses outside of the cost of electricity include capital improvements for equipment, $125,000; material, $145,000; and system upgrades, $384,291. An additional $113,513 has been included for economic development. The amount has always been taken out of the fund, according to the city administrator.
FIBER DEPARTMENT AND CEMETERY EXPECTED TO LOSE MONEY
For the city’s fiber internet program, expenditures still outweigh revenues, at $346,476 estimated in 2025 compared to $199,500 in estimated revenues. According to the city, the cost of fiber alone is $140,000.
The city’s cemetery fund is expected to lose $8,500, with only $5,500 in revenues and $14,000 in expenses.
PARKS, POLICE & FIRE SALES TAX FUNDS
Expected revenues for the parks, police and fire sales tax funds (a total of one cent) are $1,065,000 and expenditures are $538,443.16. Those include a $189,443.16 pool payment, a new police vehicle, an additional police officer, a drone for the police department, fire department equipment, hydrants and a $23,000 fire truck repayment. Including the 2025 payment, four pool payments remain.
CAPITAL IMPROVEMENT DISTRICT (CID) FUND
The Capital Improvement District (CID) fund is a pass through that is used by Texas County Memorial Hospital for improvements. Revenues and expenses are expected to both equal $130,000.