Del Rio Moves to Address $1.18 Million Negative Balance in Fleet, Facility Funds

The City of Del Rio is moving additional money into its Fleet Services and Facility Maintenance funds as officials work to reduce a combined $1.18 million negative net position carried by the two funds.

During the Sept. 22 City Council meeting, Interim Finance Director Roxy Soto said the City’s FY2025 financial report showed the two internal-service funds with a combined negative net position of $1,178,959.

As part of the City’s final FY2025-26 budget amendment, the General Fund is providing an additional $323,600 to Fleet Services and $336,400 to Facility Maintenance, for a combined $660,000 in additional transfers.

Soto said the transfers are intended to reduce the negative balance, though they will not eliminate it entirely this year.

“We are over-transferring out of the general fund to cover this negative net position in facility and fleet,” Soto told council.

The negative position does not mean the two funds are currently losing money.

For the current fiscal year, Fleet Services is projected to finish with approximately $338,100 in positive net income, while Facility Maintenance is projected at approximately $470,300.

Soto said part of the Facility Maintenance balance dates back to when the fund was created and existing employees, positions and related liabilities were transferred into it. She said those liabilities had already appeared in previous City financial statements and are now being addressed.

Fleet Services also experienced additional expenses this year following hailstorms in March and May, although insurance proceeds helped offset some of those costs.

City staff said the goal is to continue reducing the negative position during the next fiscal year and eventually bring the funds back to zero or a positive balance.

At the end of the presentation, Soto said the upcoming FY2026 audit will provide a clearer picture of how much progress has been made.