Page 11 - CityofKennedaleFY26AdoptedBudget

August 20, 2025

To: Honorable Mayor and City Council Members

From: Darrell Hull, City Manager
Subject: Adopted FY 2025-2026 Budget for the City of Kennedale

Honorable Mayor and Council Members,

I am pleased to present the recommended operating budget for the City of Kennedale for the fiscal year
2025-2026 (FY 2025-2026) for your consideration. This adopted budget will take effect on October 1,

2025, and will close on September 30, 2026. The development of this budget has been a collaborative
effort involving input from all members of the City of Kennedale leadership team. The recommended budget

for FY 2025-2026 is balanced and represents a responsible spending plan while effectively addressing the
city’s development and growth needs. Notably, the budget includes only a minimal increase in operating

expenditures. The budget development process takes into account the city council’s vision and priorities,

the economic outlook at the national, state, and local levels, as well as existing and projected financial
commitments. Additionally, the budget development considers multi-year capital planning and strategic

investments in available resources based on priority. Consistent with previous years, the recommended
budget continues to prioritize our residents, businesses, and workforce while addressing the needs of a

growing community.

The FY 2025-2026 budget anticipates continued positive growth in city revenues. The local and

regional economies have shown resilience despite the inflation-driven changes occurring nationwide.
This budget reflects anticipated increases in property and sales tax revenues, which are based on the latest

appraisals in the city.

The recommended budget proposes an increase of $103,959.45. While the general fund is the primary

source for most city operations, this budget also includes all necessary funds, such as those for water

and sewer services, stormwater management, franchise fees, investments, and the Economic Development
Corporation (EDC) fund. The most significant expenditure increases in this year’s adopted budget are

attributed to employee recruitment and retention, equitable market compensation, new debt service, and
adjustments for inflation.

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