Please note: All agenda items are considered PASSED unless indicated otherwise.

OPEN SESSION: 

RECURRING BUSINESS

COMMISSIONERS COURT

1. Receive monthly reports from Smith County departments.

Comments: 

Pages 7-20 of the Agenda Packet (link above) are the Monthly Reports from Animal Control, Facilities Services, Judicial Compliance, Pre-Trial Release & Personal Bond Office, and Veterans Services.  This allows you to see where your tax dollars are being spent through the services they provide.  Judicial Compliance collects fines and fees for the county and those amounts are reflected in their report. Take a look!

ROAD AND BRIDGE
2. Consider and take necessary action to authorize the county judge to sign     the Re-plat for Lot 4 of the Pony Ridge Subdivision, Precinct 3.
 
3. Receive pipe and/or utility line installation request (notice only):
     a. County Road 376,384,386,3183, Vexus Fiber LLC, install fiber on                 existing polls and bore underground, Precinct 4; and
     b. County Road 1184, Oncor Energy LLC, replace utility pole, Precinct 4.

AUDITOR’S OFFICE
4. Consider and take necessary action to approve and/or ratify payment of accounts, bills, payroll, transfer of funds, amendments, and health claims.
 
FY2026 BUDGET WORKSHOP
5. Consider and discuss FY2026 Budget Requests.

Comments: 

Page 38 through page 137 of the Agenda Packet

This Budget Presentation is a working document, meaning the amounts will change as we refine our plans. This version focuses specifically on capital requests, such as vehicles, rather than including salaries for new hires or adjustments to existing salaries. While I’m unable to fully clarify why the budget was structured this way, I’d like to suggest some changes as we move through this process.

To make the budget easier to understand, presenting the new Operating Costs for each department would provide a clear picture of the essential spending needed to keep things running smoothly. Alongside this, including a separate column for additional requests, like vehicles and salaries, would offer a more transparent and comprehensive view of our financial priorities. This approach would help everyone better grasp the department’s needs and foster a discussion that is centered on the additional requests.

Thank you for taking an interest in our county’s budget planning! I encourage you to view the current budget numbers as a starting point. We’re just beginning, and there are several opportunities for you to engage with the departments as they present their budget requests to the Commissioners Court and the public. Your participation is vital, and I invite you to share your perspectives on property taxes or how you believe your tax dollars should be allocated. It’s your money and engaging with your local taxing entities is both a right and a meaningful way to contribute to our county’s future.

Below are key dates for the budget presentations:

• June 17 and June 24: Departments will present their budget requests during Commissioners Court meetings.
• July 1, July 15, and July 22: Additional dates are reserved for potential budget presentations, though these are not yet confirmed.
• July 8: Public service agencies will present their budget requests to the Commissioners Court.
• July 29: Recommended Budget Presentation
• August 5: We will have a tax rate discussion, record vote & set the public hearing
• August 19: Proposed Budget Presentation
• September 9: Public Hearing on proposed budget, adoption of budget & tax rate

Judge Franklin’s Areas of Focus for FY 2026

• Cost of Living Allowance (COLA) for Employees 
• Health Insurance Costs – significant increases in our healthcare claims
• TAC Insurance Rate Increases – increases in lawsuits & vehicle wrecks 
• Inmate Medical and Food Costs – increases in inmate healthcare & food
• Judicial Salaries – Legislative changes increased salaries for Judges
• Salary Considerations 

Cost of Living Adjustments (COLA)

• With a 3% COLA = $2.14 Million w/fringe benefits
• With a 2.5% COLA = $1.5 Million
• With a 2% COLA = $1.4 Million

If we just consider the Judge’s areas of focus:

• 3% Increase to Current Employees: $2,140,000
• Health Insurance: $3,000,000
• SB 293 Judicial Pay Increase: $211,200
• Inmate Medical Increase: $1,000,000
• Inmate Food Increase: $450,000
• Increase in Vehicle & General Liability Ins.: Unknown

Total: $ 6.8 Million w/o Insurance

Projected new revenue based on the preliminary values from the Appraisal District is around $6 Million.

Personnel Requests

77 New Employees requested by 17 Departments

• FY25 Full Time Employee Count: 930
• FY26 Full Time Employee Count if approved: 1007

Total Cost with Fringe Benefits: $5,662,518

Salary Adjustment Requests (not considering the COLA):
$755,000 w/fringe benefits

Total Vehicle Requests: $2,817,476
Total Capital Equipment Requests: $1,309,500

Comments: 

You have seen Santa’s Wishlist. I wanted every budget request to be presented even if they asked for an Apache Helicopter and a massage chair.  In all seriousness, many of these department heads have been pitching the same requests for new positions and replacement vehicles, only to see them vanish into budget limbo. The public has a right to know, and these department heads should have their needs considered.  Our department leaders will now take center stage at the upcoming Commissioners Court meetings, prepared to justify every budget request with the transparency and responsibility owed to them—and to you.

Before you tune into the Commissioners Court meeting on Tuesday, here’s a simple breakdown of something important about the county’s budget. Some longtime employees have shared that, in the past, every budget item—like training costs, miscellaneous equipment, or miscellaneous repairs—had to be clearly listed with details to justify the total amount requested. That practice has faded, and now the total amounts are often approved without much scrutiny.

I’ve looked into some budget trends and reports, and it’s clear we don’t use “zero-based budgeting,” where every expense starts from scratch and must be justified. Instead, budgets keep growing a little each year, and unspent money goes back to the county’s savings, making those reserves look bigger than needed.

For example, if a department asks for more training money just because it’s a new year—not because costs went up or they’re planning more training—they’re taking funds that another department might need for things like hiring staff or buying equipment. This fiscal year (October 1, 2024, to September 30, 2025), the training budget is over $1 million, but only about $600,000 has been spent so far. In today’s economy, every dollar matters. Those unspent funds could help address real needs in other departments.  When the county just opts to raise the tax rate to meet the needs, the taxpayer pays the price for poor budgeting practices. With a renewed focus on justifying every dollar and prioritizing real needs, we can build a budget that serves both our departments and our taxpayers—join us at the Commissioners Court meeting to help shape a smarter, fairer future for our county.

ADJOURN