[1. RP-26-0010 – Public Hearing, discussion, and take appropriate action to approve a request to Replat Lot 1R, Block 77, South Decatur Addition, being a replat of part Lot 1, Block 77, South Decatur Addition to the City of Decatur, Wise County, Texas, also known as 1300 S Hatcher Street. (Jackson) ]

OPERATOR INSPIRED HIM TO OPEN A DEDICATED LUBE SHOP FOR LARGE TRUCKS AND EQUIPMENT IN WISE COUNTY.

WHEREAS, AFTER RECOGNIZING THE NEED FOR DEPENDABLE, SPECIALIZED MAINTENANCE SERVICE IN THE REGION, GLEN FOSTER ESTABLISHED THE FIRST CHOICE TRUCK LUBE JULY OF 20 OR OF 2005, AS AN INDEPENDENTLY OWNED AND OPERATED BUSINESS SERVING A WIDE VARIETY OF VEHICLES WHILE CONTINUALLY BUILDING CUSTOMER RELATIONSHIPS BASED ON TRUST AND INTEGRITY.

WHEREAS THE THE BUSINESS CHOSE WISE COUNTY AS ITS HOME AFTER A STRONG PARTNERSHIPS FORMED DURING GLENN'S TRUCKING CAREER, WHICH LED TO THE PURCHASE OF THE LAND WHERE THE BUSINESS SITS TODAY.

[00:05:03]

WHEREAS FIRST CHOICE IS DEEPLY COMMITTED TO WISE COUNTY INVESTING IN THE FUTURE OF LOCAL YOUTH THROUGH DONATIONS, SPONSORSHIPS, SUPPORTING SCHOOL STUDENTS AND OTHER YOUTH PROGRAMS. WHEREAS, THE BUSINESS CONTINUES TO EXPAND ITS CAPABILITY, INCLUDING THREE NEW BAYS FOR CARS AND TRUCKS, WHICH IMPROVES EFFICIENCY AND SERVICE CAPACITY FOR THE GROWING COMMUNITY.

WHEREAS, FIRST CHOICE TRUCK GROUP CELEBRATES ITS 21ST ANNIVERSARY ON JULY 11TH, 2026, MAKING MORE THAN TWO DECADES OF SERVICE GROWTH AND COMMUNITY COMMITMENT. THEREFORE, I, EDDIE ALLEN, MAYOR OF THE CITY OF DECATUR DO DECLARE MONDAY, JULY 27TH FIRST CHOICE TRUCK LUBE DAY. ALL RIGHT.

THANK YOU. THANK YOU. AWESOME. ONE MORE, ONE MORE.

GET OUT OF THE WAY. THANK YOU. THANK YOU FOR BEING HERE [APPLAUSE].

THANK YOU. THANK YOU VERY MUCH. THANK YOU.

THANK YOU. LEE. THANK YOU.

ALL RIGHT. WE DON'T HAVE A SUSIE. SO WHO DO I ASK? HERANDI. HERANDI, DO WE HAVE ANY SPEAKERS TONIGHT? NOBODY SIGNED UP. ALL RIGHTY. PUBLIC HEARING ITEM I.

WE'RE GOING TO OPEN THE PUBLIC HEARING AT 6:07.

[2. Consider and take appropriate action to approve the second reading of an ordinance of the City of Decatur, Texas, updating and amending public works review and inspection fees and implementing requirements of Local Government Code Section 212.906; providing for the method of calculating fees; prohibiting value‑based fee consideration; prohibiting certain disclosure requirements; requiring annual publication; providing a severability clause; and providing an effective date. Ordinance 2026 07-21]

ITEM NUMBER ONE, PUBLIC HEARING DISCUSSION AND TAKE APPROPRIATE ACTION TO APPROVE THE REQUEST TO REPLAT.

LOT 1-R BLOCK 77, SOUTH DECATUR ADDITION. GOOD EVENING.

WHERE'S YOUR NAME TAG? THEY LOST IT OVER THERE.

IT'S GETTING FIXED. GOOD EVENING, COUNCIL. PLANNING DIRECTOR.

WE'LL ENTER OUR STAFF REPORT INTO THE RECORD IN ITS ENTIRETY BY REFERENCE.

SO THIS IS A REPLAT FOR 1300 SOUTH HATCHER STREET.

IT MEETS THE MINIMUM REQUIREMENTS OF THE SUBDIVISION ORDINANCE AND IT CAN BE LEGALLY PLATTED.

IT'S ABOUT 0.258 ACRES. SITS AT THE CORNER OF EAST PRINCE AND SOUTH HATCHER STREET.

SO WHEN THE PLATTING CAME THROUGH, THERE WERE SOME SPECIAL EXCEPTION ENCROACHMENT, SPECIAL EXCEPTIONS THAT WERE REQUIRED FOR EXISTING NON-CONFORMING SETBACKS FOR THE FRONT YARD, FOR THE PRIMARY STRUCTURE, SIDE YARD FOR THE PRIMARY STRUCTURE, AND THE SECONDARY STREET FRONT FOR THE PRIMARY STRUCTURE ON PRINCE STREET.

AND THE BOARD OF ADJUSTMENTS APPROVED THOSE AT THE JULY 20TH MEETING.

IN ADDITION, THE PROPERTY OWNERS REQUESTING TO INSTALL A CARPORT, CONSTRUCT A NEW CARPORT.

AND IT REQUIRED A VARIANCE BECAUSE IT DEVIATES FROM THE REQUIRED SETBACK.

AND THE BOARD OF ADJUSTMENTS APPROVED THAT REQUEST AT THE JULY 20TH MEETING.

SO 21 PROPERTY OWNERS WERE NOTIFIED VIA THE U.S.

POSTAL SERVICE. WE DID NOT RECEIVE ANY RESPONSES FOR THE PLANNING REQUEST, AND BASED UPON OUR FINDINGS AND CONCLUSIONS, STAFF RECOMMENDS APPROVAL OF THE REPLAT 26-0010 PLANNING AND ZONING RECOMMENDED APPROVAL 5 TO 0, AND THE BOARD OF ADJUSTMENTS DID APPROVE THE ENCROACHMENT, SPECIAL EXCEPTIONS AND THE VARIANCE REQUEST AT THE JULY 20TH MEETING.

I'M HERE FOR ANY QUESTIONS. I HAVE ANY QUESTIONS.

ACTION REQUIRED? IT IS. YES, SIR. I'LL MAKE A MOTION.

MR. MAYOR, TO APPROVE RP 26-0010. I'VE GOT A FIRST FROM MELINDA AND A SECOND FROM

[3. Consider and take appropriate action to approve a purchase contract with Honeywell/ US Digital Designs (USDD) for dispatching hardware and software for Fire Station 1 and Fire Station 2 alerting systems.]

REX. ANY OTHER QUESTIONS? ALL THOSE IN FAVOR, PLEASE SAY AYE.

AYE. THOSE WHO OPPOSE SAY NO. THE AYE'S CARRY.

AND WE WILL CLOSE THIS MEETING AT 6:09. ITEM NUMBER TWO CONSIDER AND TAKE APPROPRIATE ACTION TO APPROVE THE SECOND READING OF AN ORDINANCE OF THE CITY OF DECATUR. UPDATING THE AMENDED PUBLIC WORKS REVIEW AND INSPECTION FEES.

[00:10:02]

IMPLEMENTING REQUIRED ON LOCAL GOVERNMENT CODE.

SECTION 2 12.906 MAYOR AND COUNCIL. THERE'S NO CHANGES TO THE PUBLIC WORKS FEE SCHEDULE ORDINANCE SINCE YOU SAW IT LAST. WITH ONE CLERICAL ITEM. THE FEE SCHEDULE THAT'S IN YOUR PACKET IS A VERSION THAT NEEDS TO BE MODIFIED.

SO WE WOULD JUST SIMPLY ASK THAT ALLOW STAFF TIME TO MODIFY THAT IN TERMS OF THE CONTEXT OF THE ORDINANCE.

THERE ARE NO CHANGES. IT'S THE SAME AS WE PRESENTED IT.

JUST AS A QUICK UPDATE. CAN YOU GIVE US JUST A QUICK WHY WE HAD TO DO THIS.

OF COURSE. SO HISTORICALLY, WITH PUBLIC WORKS FEES, WE WERE CHARGING BY LINEAR FOOT.

FOR EXAMPLE, IF SOMEONE WAS PUTTING IN WATER OR WASTEWATER UTILITY AND THEY NEEDED THAT INSPECTED, WE WERE CHARGING BY THE LINEAR FOOT. AND THE LEGISLATURE ACTUALLY DOESN'T ALLOW FOR THAT ANYMORE.

IT'S GOT TO BE BASED ON FEE RECOVERY MODEL. SO WHAT WE DID IS SAT DOWN WITH STAFF AND WE CAME UP WITH THE EXPENSE FOR OUR INSPECTIONS TEAM.

AND WE APPLIED THAT SPLIT BETWEEN A HALF DAY'S WORTH OF INSPECTIONS ON A PROJECT AND A FULL DAY'S WORTH OF INSPECTIONS ON A PROJECT.

AND SO THAT'S MORE IN LINE WITH WHAT THE LEGISLATURE ALLOWS.

IT IS ALSO A LITTLE BIT MORE FAIR TO THE PROJECT.

AT THE PRE-CONSTRUCTION MEETING, EVERYONE CAN AGREE TO THE AMOUNT OF DAYS OR THE AMOUNT OF HALF DAYS IT WILL TAKE TO INSPECT THE ENTIRETY OF THE PROJECT.

AND SO THE FEES WILL BE MORE ACCURATELY REPRESENTED WHEN THE BILL COMES.

I HOPE THAT HELPS TOO. SO IT WAS A STATE MANDATE THAT CREATED THIS.

I'VE JUST GOTTEN A FEW PHONE CALLS TO ASK ABOUT IT, AND THAT'S WHAT STARTED THE CONVERSATION.

YES, SIR. ALL RIGHT. AWESOME. THIS IS AN ACTION ITEM.

SO. IF THERE ARE NO QUESTIONS, MR. MAYOR, I'D LIKE TO MAKE A MOTION.

AWESOME. I'D LIKE TO MOVE TO APPROVE ORDINANCE 2026-0721.

ALL RIGHT. I'VE GOT IT FIRST FROM WILL AND A SECOND FROM JAKE.

ALL THOSE IN FAVOR, PLEASE SAY AYE. AYE. THOSE OPPOSED SAY NO.

THE AYES CARRY IT. ITEM NUMBER THREE. TAKE CONSIDER APPROPRIATE ACTION TO APPROVE A PURCHASE CONTRACT WITH HONEYWELL U.S.

[4. Discussion of City of Decatur Fiscal Year 2026/27 Proposed Budget and Tax Rate. Specific items for discussion: 1) 2026/27 Proposed Budget, 2) Property Tax Rate, 3) other.]

DIGITAL DESIGN FOR DISPATCH HARDWARE AND SOFTWARE FOR FIRE STATION ONE AND FIRE STATION TWO ALERTING SYSTEM.

MAYOR AND COUNCIL. I THINK I WAS A LITTLE PREMATURE IN PUTTING THIS ITEM ON YOUR AGENDA TONIGHT.

WE ARE ASKING FOR NO ACTION TONIGHT. THIS IS ONE OF THREE PIECES THAT WILL COME AS PART OF THE FIRE STATION.

ONE REHAB AND THE FIRE STATION TWO CONSTRUCTION.

BUT I DON'T BELIEVE THAT ALL THE I'S HAVE BEEN DOTTED AND THE T'S HAVE BEEN CROSSED BETWEEN DISPATCH, POLICE, FIRE AND ALL OF OUR CONTRACTORS. SO WE'LL BRING THIS BACK TO YOU AT YOUR NEXT CYCLE AND WE'LL TAKE ACTION THEN.

QUESTIONS? NATE, DO WE USE HONEYWELL RIGHT NOW? I SHOULD KNOW THE ANSWER TO THAT QUESTION. NO, IT WOULD BE THAT WOULD BE A NEW SERVICE CONTRACTOR. NEW TECHNOLOGY NEW DEVICES THAT WE WOULD BE SEEKING OUT. AND THEY'RE ALL INTERCHANGEABLE.

EVERYTHING'S GOING TO MESH. AND THAT'S THE I'S AND THE T'S THAT WE NEED TO CONFIRM THAT IT'S ALL BUTTONED UP THERE, THAT IT WILL, IN FACT, TALK TO THE NEEDS OF FIRE AND THE EXISTING TECHNOLOGY IN THE POLICE STATION.

YEAH. GOOD QUESTION. ANY OTHER QUESTIONS? WHY DON'T WE USE WHAT THE.

WHY DON'T WE USE THE SAME SYSTEM THE POLICE USES? GREAT. GREAT QUESTION, JAKE, AND I'LL LET CHIEF ANSWER THAT.

I WILL TAKE A STAB AT IT AND THEN I'LL LET HIM ANSWER IT CORRECTLY.

PROBABLY THE THE SOFTWARE THAT POLICE USE IS ACTIVE IN THEIR CRUISERS ALL THE TIME.

IT'S A CAD SYSTEM THAT THEY INTERFACE WITH THROUGHOUT THE DAY AS IF YOU KNOW, WE'RE IN REAL TIME.

THE DIFFERENCE IS WHEN WE ALERT A FIRE STATION OR IN THIS CASE, IN THE FUTURE, TWO FIRE STATIONS, THAT'S MORE OF A TONING. SO IT SENDS A MESSAGE TO EACH BUILDING, RESPECTIVELY.

IT'S JUST A DIFFERENT INTERFACE. THERE'S, THERE'S NOT NECESSARILY A COMPUTER THAT THE FIREMEN AND FIRE PERSONNEL ARE WATCHING 24/7.

THEY DO HAVE TO RELY ON THE STATION TO COME ALIVE TO TELL THEM WHERE THEY'RE GOING AND WHAT THEY'RE DOING.

AND I'LL LET CHIEF MAYBE ANSWER THAT DIFFERENTLY.

NO, THAT'S EXACTLY RIGHT. IT'S IT'S THIS IS LITERALLY A STATION COMPONENT.

IT IT WAKES EVERYBODY UP. IT LETS EVERYBODY UP.

IT SCROLLS THE INFORMATION ACROSS BOARDS AS YOU'RE EXITING TO GET TO THE TRUCKS.

AND IT'S, IT'S JUST A HARDWARE PIECE THAT TRANSFERS IN IT TO MAKE THE STATION COME ALIVE.

ANY OTHER QUESTIONS? THAT WAS A GOOD QUESTION, BY THE WAY.

I'M NOT SURE I WAS QUALIFIED TO ANSWER THAT, JAKE.

YOU WERE AT ONE POINT. ITEM NUMBER 4. DISCUSS, DISCUSSION OF THE CITY OF DECATUR FISCAL YEAR 2026 2027.

[00:15:01]

PROPOSED BUDGET AND TAX RATE SPECIFIC ITEMS FOR DISCUSSION 2026 2027 PROPOSED BUDGET, PROPERTY TAX RATE AND OTHERS. THANK YOU, MAYOR. COUNCIL. SO TONIGHT IS OUR KICKOFF IN THE PROCESSES FOR OUR FY 27 BUDGET AND OUR CALENDAR YEAR 26 TAX RATE. IT'S, I'M, TIME FLIES THAT WE'RE ALREADY HERE DOING THIS.

AND JUST FOR CLARITY'S SAKE AND THOSE THAT MAY WATCH LATER OR THOSE THAT ARE HERE WITH US TONIGHT, WE ARE A LITTLE AHEAD OF SCHEDULE. NORMALLY, WE TACKLE THIS PARTICULAR CONVERSATION IN AUGUST AND THEN WE FIND OUT IN SEPTEMBER.

BUT AS YOU WOULD RECALL, I'VE CAUTIONED US ON WAITING TOO FAR INTO THE CYCLE OF THE YEAR TO GET THIS DONE.

AND THERE'S LOTS OF NEW RULES THAT WE HAVE TO PLAY BY, AND SOME OF THOSE WILL COME THROUGH OUR PRESENTATION TONIGHT.

BUT TONIGHT, WHAT I WANT TO DO IS I JUST WANT TO HAVE A DISCUSSION ABOUT THE OVERALL PROCESS.

WE ARE LITERALLY 15 MINUTES PAST OUR BUDGET HEARING WITH OUR BUDGET COMMITTEE JUST A MOMENT AGO.

SO WE HAVE SOME DIRECTION THERE. BUT WHAT I'M HOPEFUL FOR TONIGHT IS TO SET THE TAX RATE IN MOTION AND ALLOW BETWEEN NOW AND OUR NEXT COUNCIL MEETING TO FINALIZE THE MOVING PIECES OF THE BUDGET.

BUT REGARDLESS, WE'LL HAVE A FIRST READING OF BOTH OF THOSE ITEMS TONIGHT.

AND JUST AS A REMINDER FOR THOSE WHO MAY BE PARTICIPATING FOR THE FIRST TIME WATCHING THIS OR HEARING IT LIVE TONIGHT.

THE BUDGET HAS TO BE DEALT WITH FIRST AND THEN THE TAX RATE HAS TO BE APPROVED.

YOU APPROVE THE BUDGET THAT YOU'RE GOING TO OPERATE BY, AND THEN YOU COME IN AND APPROVE THE TAX RATE THAT HELPS TO SUPPORT THAT.

SO WE'LL WALK THROUGH A FEW THINGS. AND PLEASE FORGIVE ME IF THIS SOUNDS REPETITIVE.

CERTAINLY TO THE BUDGET COMMITTEE WHO JUST SPENT SOME TIME WITH ME. AND THANK YOU FOR THAT. SO WE FOLLOW A ROAD MAP EVERY YEAR AND THE BUDGET SEASON NEVER REALLY STOPS.

WE'RE ALWAYS LOOKING AT WHAT'S NEXT AND WHAT WHAT ITEMS THE STAFF NEED, WHAT EQUIPMENT OR STAFFING ARE COMING DOWN RANGE.

BUT A LOT OF THOSE THINGS ARE DRIVEN BY OUR LEGISLATIVE MANDATES.

AND SO I WANT TO COVER SOME OF THE LANGUAGE THAT COME FROM THE RULE MAKERS.

SO THE NO NEW REVENUE TAX RATE IS LAST YEAR'S LEVY DIVIDED BY THE CURRENT TAXABLE VALUE.

AND YOU SHOULD HAVE AT YOUR PLACE A SHEET THAT LOOKS VERY SIMILAR TO THIS.

ON ONE SIDE, THERE'S MAYBE YELLOW AND GREEN. AND THEN ON THE OTHER SIDE, IT'S JUST BLACK AND WHITE.

AND ALL THE THINGS THAT I AM SAYING HERE WILL BE REFLECTED ON YOUR SHEET, AND WE CAN WALK THROUGH THAT AS NEEDED.

SO TURN TO THE NON COLORED SIDE FIRST, AND THAT WILL HELP YOU WITH SOME OF THESE DEFINITIONS THAT I'M TALKING ABOUT.

SO NO NEW REVENUE TAX RATE IS LAST YEAR'S LEVY DIVIDED BY THE CURRENT TOTAL TAXABLE VALUE.

AND YOU SEE ON THAT PAGE THAT I'VE PROVIDED THERE YOUR TOTAL TAXABLE VALUE IS $1,523,922,907.

THAT IS UP FROM WHERE IT WAS LAST YEAR, ABOUT 28 MILLION OR SO.

LAST YEAR'S TAXABLE VALUE WAS ONE 1,495,000,000.

AND SOME CHANGE THE NO NEW REVENUE, MAINTENANCE AND OPERATIONS RATE.

THAT'S OBVIOUSLY LAST YEAR'S NO NEW REVENUE TAX RATE, WHICH WOULD HAVE BEEN LAST YEAR'S TOTAL TAX RATE APPLIED TO THIS YEAR'S TAXABLE VALUE MINUS LAST YEAR'S DEBT. SO HOW MUCH HOW MANY DOLLARS DID WE OPERATE WITH LAST YEAR ON THE MAINTENANCE AND OPERATIONS SIDE OF THE HOUSE? THAT IS YOUR NO NEW REVENUE MAINTENANCE AND OPERATION RATE.

AND LAST YEAR, THAT'S THE VERY TOP LINE ON YOUR CALCULATION SHEET, $6,085,915.

AND THEN THE VOTER APPROVAL TAX RATE IS A IS A CALCULATION OF THE NO NEW REVENUE TAX RATE, PLUS ANY NEW DEBT THAT THE BODY TOOK ON. AND THOSE TWO COMBINED TOGETHER TO GIVE YOU YOUR VOTER APPROVAL TAX RATE.

AND YOU WILL SEE ON YOUR SHEET THERE THAT I HAVE CALCULATED THE VOTER APPROVAL TAX RATE DOWN TOWARDS THE BOTTOM THERE, AND WE WILL GET TO THE PARTICULARS OF THAT HERE IN JUST A MOMENT.

WE'VE TALKED THROUGH DE MINIMIS SEVERAL TIMES.

DE MINIMIS IS THE ADDITIONAL TAX RATE THAT YOU CAN PUT ABOVE, IN MOST CASES, ABOVE AND BEYOND THE VOTER APPROVAL RATE TO ALLOW FOR A MUNICIPALITY OF LESS THAN $30,000 TO GAIN AN ADDITIONAL HALF MILLION DOLLARS.

SO FOR A COMMUNITY OUR SIZE, SOMETIMES THAT IS A GOOD CALCULATION IN OUR FAVOR, AND SOMETIMES IT IS A BAD CALCULATION IN OUR FAVOR.

AND THIS YEAR, THE VOTER APPROVAL RATE AND THE DE MINIMIS RATE ARE VERY SIMILAR FOR US BECAUSE OF THE EBB AND FLOW OF OUR VALUE PICTURE.

[00:20:01]

THERE IS A SNEAKY LITTLE TERM THAT HANGS OUT IN SOME CITIES CALLED AN UNUSED INCREMENT RATE.

THAT JUST SIMPLY MEANS IF A MUNICIPALITY DOES NOT TAKE ITS 3.5% INCREASE, IT DOES HAVE WHAT THEY CALL UNUSED PENNIES.

AND YOU CAN LOOK BACK FOR A PERIOD OF THREE YEARS AND COMBINE ALL THOSE PENNIES.

AND I CONGRATULATE THOSE CITIES THAT HAVE UNUSED PENNIES.

I DON'T KNOW HOW THEY'RE DOING THAT, BUT WE UNFORTUNATELY DO NOT.

SO JUST AS A REMINDER SPECIFIC TO THE TAX RATE, THERE ARE CERTAIN TRIGGER POINTS THAT WE PAY ATTENTION TO FOR THE PURPOSES OF CALLING THE ELECTIONS OFFICE, CALLING FOR AN ELECTION. SO IF WE STAY AT OR BELOW THE VOTER APPROVAL RATE, THERE'S NO ELECTION REQUIRED. IF WE GO ABOVE THE VOTER APPROVAL RATE, BUT WE STAY IN THAT WINDOW OF DE MINIMIS, THE VOTERS HAVE THE RIGHT TO PETITION BY WRITTEN PETITION FOR AN ELECTION.

AND THEN OBVIOUSLY, IF WE GO ANYTHING ABOVE DE MINIMIS, THEN AN ELECTION IS REQUIRED.

THOSE ARE LEGISLATIVE MANDATES. AND SO I'LL PAUSE RIGHT THERE.

ANY QUESTIONS OVER THE DEFINITIONS BEFORE WE MOVE ON? SO I DO WANT TO SAY THANK YOU TO COUNCIL MEMBERS HILTON OR I'M SORRY, REEVES, CROSS AND HAYES, THANK YOU SO MUCH FOR HELPING WITH THE BUDGET MEETINGS, AND I APOLOGIZE.

WE JUST MET RIGHT BEFORE THIS MEETING, BUT BECAUSE OF HOW OUR VALUES SHAPED UP THIS YEAR, WE WANTED THE MOST ACCURATE NUMBERS THAT WE COULD HAVE ACCESS TO FOR THE PURPOSES OF TONIGHT. SO MOVING ALONG, WE'RE ALWAYS WORKING BACKWARDS FROM OCTOBER 1ST WHEN THE BUDGET BECOMES EFFECTIVE.

SO BECAUSE WE'RE ALWAYS WORKING BACKWARDS, HERE'S A KIND OF A LOOK AT WHAT TO EXPECT THIS YEAR'S AND THIS YEAR'S CYCLE.

SO IN AUGUST WE'LL FINISH UP OUR BUDGET AND TAX RATE.

AND THEN OBVIOUSLY IN JULY, WE SPENT A LOT OF TIME DRAFTING AND WE HAD ONE BUDGET WORKSHOP WITH OUR BUDGET COMMITTEE, AND WE HAD SEVERAL MEETINGS WITH ALL OF OUR DEPARTMENTS TO DETERMINE THE LEVEL OF NEED AND MANAGE EXPECTATIONS FROM THAT ANGLE AS WELL.

SO I'LL BREEZE THROUGH THAT. THOSE DATES HAVE COME AND GONE.

OKAY, SO LET'S TALK TAX RATE. AND AGAIN, THIS ITEM IS JUST SIMPLY ABOUT DISCUSSION.

ARE WE HEADED IN THE RIGHT DIRECTION? ARE YOU COMFORTABLE WITH THE REMAINING ITEMS THAT ARE ON TONIGHT'S AGENDA? IS EVERYBODY FEELING GOOD ABOUT THE TIMING? ET CETERA.

ET CETERA. SO LAST YEAR'S TAX RATE IS REPRESENTED ON THE LEFT SIDE OF YOUR SCREEN.

I'M SORRY. LAST YEAR'S VALUE IS REPRESENTED ON THE LEFT SIDE OF YOUR SCREEN.

AND THEN THIS YEAR'S VALUES ON THE RIGHT SIDE OF YOUR SCREEN, YOU CAN SEE THAT 1.523 NUMBER IS ABOUT JUST SHY OF A 2% INCREASE IN THE OVERALL VALUE.

AND OF THAT, 28,450,000 IS IN THE FORM OF NEW CONSTRUCTION.

NOW, THE UNFORTUNATE PIECE TO THAT IS WE WE HAD, YOU'VE HEARD ME TALK THROUGH SENATE BILL OR HOUSE BILL NINE.

WE'LL GET TO THAT HERE IN A SECOND. LET ME LET ME NOT GET AHEAD OF MYSELF. I DON'T WANT TO GET TOO FAR OUT THERE. SO YOU'VE SEEN THIS GRAPH OR THIS CHART BEFORE.

HISTORICALLY SPEAKING THIS HAS BEEN A GOOD TOOL FOR US TO JUST KIND OF SEE WHERE OUR TAX RATE IS HEADED.

SO THE VERY TOP LINE CERTIFIED TAXABLE VALUE IS WHAT WE JUST COVERED.

THE NEXT LINE IS TAX COLLECTION, AND I'LL EXPLAIN WHY THAT LOOKS SO, SO MUCH HIGHER THAN IT DID LAST YEAR HERE IN JUST A MOMENT.

CHANGE IN OVERALL VALUE. THAT'S PROPERTY VALUE.

AND THEN THE NEXT THREE STARTING WITH TOTAL TAX RATE IS WHATEVER THE BODY HERE DECIDES, THAT WILL BE YOUR TAX RATE SPLIT BETWEEN MAINTENANCE AND OPERATION AND I&S AND I&S SIMPLY MEANS INTEREST AND SINKING.

AND FOR THOSE THAT ARE WATCHING THIS PRESENTATION, THAT'S A CODE WORD FOR DEBT.

SO I MENTIONED EARLIER HOUSE BILL NINE. I'VE MENTIONED THIS SEVERAL TIMES TO THIS GROUP.

GREAT. THIS IS A GREAT TOOL FOR THE BUSINESS COMMUNITY.

VERY GRATEFUL FOR THEM BEING ABLE TO INCREASE THEIR EXEMPTIONS FROM $2500 TO $125,000.

HOW THAT IMPACTED THE CITY OF DECATUR IS IT REDUCED THE TOTAL TAXABLE VALUE THERE BY $21 MILLION.

AND SO ALMOST ALL OF THAT NEW CONSTRUCTION THAT WE HAVE ESSENTIALLY IS OFFSET BY THAT VALUE EXEMPTION VALUE INCREASE.

AND SO YOU'RE FAMILIAR WITH THE TAX RATE BY THIS POINT, THOSE SEASONED ON THE COUNCIL.

WHAT HAPPENS WHEN VALUES RISE, THE DESIGN OF THE TAX RATE IS TO GO DOWN.

BUT WHEN VALUES GO DOWN, THE DESIGN OF THE TAX RATE IS TO COME UP BECAUSE OF THE DEFINITIONS WE COVERED IN THE VERY BEGINNING, THE NO NEW REVENUE RATE ET-CETERA THERE'S A REQUIREMENT FOR CITIES TO GET BACK TO WHERE THEY WERE IN THE PREVIOUS YEAR.

AND THAT TAX RATE FORMULA IS HOW THAT'S DONE.

SO IF WE STAY ON TRACK TONIGHT, THIS IS THE SCHEDULE WE'LL HAVE TONIGHT.

[00:25:04]

YOU'LL SET EVERYTHING IN MOTION. AND ON AUGUST 10TH YOU'LL APPROVE YOUR BUDGET AND YOUR TAX RATE.

NOW THERE IS AN AREA FOR US TO HAVE CONVERSATION HERE IN JUST A MOMENT.

IF YOU CHOOSE TO GO BELOW, AT OR BELOW THE VOTER APPROVAL RATE.

THAT DOES BIAS TWO MORE WEEKS. AND SO WE COULD ADJUST THIS TIMELINE IF YOU SO CHOOSE, BUT STAFF HAS IT READY TO GO BASED ON WHAT WE'RE APPROVING TONIGHT. THE NEXT BUDGET COMMITTEE WORKSHOP IS SCHEDULED FOR AUGUST 7TH.

AND I DO WANT TO JUST SAY, BEFORE WE START TALKING NUMBERS IN TERMS OF HOW THE FUNDS ARE SHAPING UP, THAT WE STILL HISTORICALLY, WE ENTER THIS PROCESS EVERY YEAR AND THE BUDGET IS OVER BY A MILLION AND A HALF OR $2 MILLION BASED ON ALL THE ASKS.

I WANT TO TAKE A MOMENT TO BRAG ON OUR STAFF AND OUR DEPARTMENT HEADS.

THEY REALLY TOOK A VERY CONSERVATIVE APPROACH THIS YEAR.

AND SO THIS YEAR, THE OFFSET, THE OVERAGE THAT WE'RE FACING IS ONLY $430,000, WHICH IS AMAZING.

THAT'S THE THE BEST BUDGET THAT WE'VE HAD IN TERMS OF A FIRST LOOK SINCE I HAVE BEEN HERE.

SO VERY GRATEFUL FOR THAT. BUT I SAY THAT TO SAY WE STILL HAVE SOME WORK TO DO PAST TONIGHT.

OKAY, LET'S DIVE SPECIFICALLY INTO PROPERTY TAX RATE.

AND THAT'S WHERE THIS SHEET RIGHT HERE WILL BE VERY HELPFUL FOR YOU.

IF YOUR TERMS OR A NUMBERS PERSON, FEEL FREE TO LOOK DOWN HERE.

OTHERWISE, I FEEL LIKE I'VE SUMMARIZED IT PRETTY WELL UP HERE ON THE SCREEN.

SO THE FY 26 PROPERTY TAX RATE IS $0.56 OR .565713 CENTS.

AND THE PROPOSED TAX RATE RIGHT NOW IS .676611 CENTS.

THAT REPRESENTS AN 11% OR 11 CENT INCREASE RATHER.

AND YOU CAN SEE IN OUR MAINTENANCE AND OPERATION RATE THAT THAT'S ONLY ABOUT A 3% OR THREE CENT INCREASE ON MAINTENANCE AND OPERATION.

AS A REMINDER, WE'RE ALLOWED TO HAVE 3.5% INCREASE UNDER THE VOTER APPROVAL RATE.

THE BIG CHUNK HERE IS OUR I&S OR OUR DEBT TAX RATE.

SO IT WENT FROM 15.8 TO RIGHT AT $0.24. SO I'LL PAUSE RIGHT THERE.

IF YOU GLANCE DOWN MIDDLE WAY THROUGH THE SHEET THAT I HANDED OUT TO YOU, YOU WILL SEE JUST BELOW TOTAL TAXABLE VALUE, LESS NEW AND TIRZ DISTRICT. RIGHT BELOW THAT, YOU WILL SEE THAT WE HAVE SET ASIDE IMPACT FEES.

IF YOU REMEMBER THIS COUNCIL BODY AND THE COUNCIL FROM LAST YEAR SPENT A LOT OF TIME SPECIFICALLY DEALING WITH IMPACT FEES.

ARE WE IN THE RIGHT SPOT? DO WE HAVE THE RIGHT COLLECTIONS, MODELS, ETC.? AND SO YOU DO HAVE THE OPPORTUNITY HERE TONIGHT TO USE SOME OF YOUR IMPACT FEE FUND TO REDUCE YOUR DEBT SERVICE TAX RATE.

SO FOR THE EASIEST WAY TO EXPLAIN IT TO YOU IS FOR EVERY $150,000 WORTH OF IMPACT FEES YOU USE, YOU CAN REDUCE A PENNY OFF OF YOUR DEBT RATE.

JUST BEFORE YOU GET TOO EXCITED ABOUT THAT, I WANT YOU TO JUST KNOW THAT YOU HAVE AROUND $550,000 CURRENTLY AVAILABLE TODAY IN YOUR IMPACT FEE FUND, SO YOU COULD OFFSET BY AS MUCH AS ABOUT 3% OR THREE PENNIES ON YOUR DEBT TAX, IF YOU SO CHOOSE TO DO THAT.

AND I'LL SHOW YOU HOW THAT LOOKS UP HERE IN JUST A MOMENT.

SO IF YOU IF YOU DON'T USE YOUR IMPACT FEES, IT'LL BE AN 11, 11 CENT INCREASE IN THE OVERALL TAX.

IT'LL GENERATE 565,109 IN ADDITIONAL REVENUES, 120 000 OF THAT COMES FROM NEW CONSTRUCTION.

YOU KNOW, WE CALCULATE IT ALL TOGETHER, BUT A SLICE OF THAT COMES FROM NEW CONSTRUCTION.

AND SO IF YOU IF YOU APPROVE THIS TAX RATE TO MOVE FORWARD THE CITY PROPOSES TO RAISE THE TAXES BY APPROXIMATELY $111 PER $100,000 OF PROPERTY. AND I'LL PAUSE RIGHT THERE.

WE'RE MAINTAINING OUR DISABILITY AT 30,000. I'LL PAUSE RIGHT THERE AND ASK WHAT QUESTIONS YOU HAVE BEFORE I SHOW YOU A CONTRASTING SCENARIO WITH IMPACT FEE RELIEF.

LOOKS LIKE EVERYBODY'S GOOD. HEARING NONE. SO LET'S ASSUME THAT YOU USE SOME OF YOUR IMPACT FEES TO REDUCE A COUPLE OF PENNIES OFF OF YOUR DEBT RATE, SO YOU COULD PULL YOUR TOTAL TAX RATE DOWN TO .656860.

AND I BELIEVE THAT WOULD BE A SAVINGS OF AROUND $20 PER YEAR PER 100,000 OF HOME VALUE.

SO WHAT I MY THOUGHT IS TONIGHT, JUST SOME GENERAL DISCUSSION WITH THE BUDGET COMMITTEE.

THEY ASKED WHAT MY OPINIONS WERE. YOU KNOW, ONE OF THE ONE OF THE ITEMS THAT WAS BROUGHT UP IS IMPACT FEES ARE NEVER GUARANTEED.

[00:30:07]

THE NUMBERS THAT I'VE GIVEN YOU HERE TO TONIGHT TO BE ABLE TO POTENTIALLY PULL FROM THOSE ARE DOLLARS THAT HAVE BEEN PAID INTO THE FUND.

TODAY, YOU COULD BEGIN USING THEM FOR PURPOSES LIKE THIS TODAY IF YOU SO CHOOSE.

IF CONSTRUCTION STOPS AND WE'VE DEPLETED THAT FUND, IT COULD BE COMPLICATING IN THE FUTURE.

LET ME SAY IT DIFFERENTLY. I DON'T WANT US TO GET INTO A HABIT OF LOOKING TO IMPACT FEES AT A VERY LARGE AMOUNT, TO ALWAYS OFFSET, BECAUSE IT'S A BALANCING ACT.

WE NEED THE NEW CONSTRUCTION TO COME ON. REMEMBER, THIS COUNCIL HAS SAID VERY CLEARLY DEVELOPMENT PAYS ITS FAIR SHARE.

SO THAT'S THE SPIRIT OF IMPACT FEES COMING TO THE TABLE HERE.

WHEN WE'RE TALKING ABOUT TAX RATE, THE BUDGET COMMITTEE ASKED ME WHAT MY OPINION WAS.

I THINK THAT GIVEN THE SMALL AMOUNT OF MONIES THAT ARE AVAILABLE IN THE IMPACT FEE FUND AND THE FACT THAT THE HOUSING MARKET IS NOT QUITE AS FAST AS EVERYONE ANTICIPATED IT WOULD BE, I THINK IT WOULD BE FAIR TO HAVE A CONVERSATION AMONGST OURSELVES ABOUT HOLDING THOSE IMPACT FEES FOR ONE MORE YEAR AND SEEING WHAT THAT MIGHT LOOK LIKE, BUT I'M CERTAINLY OPEN TO DISCUSSION OR SCENARIOS WITH THE IMPACT FEES AT THE PLEASURE OF THE COUNCIL. WHAT'S THE AVERAGE PROPERTY VALUE? THE AVERAGE HOME VALUE? GOOD QUESTION. EDDIE DID YOU GET? DID YOU GUYS GET THE VALUE SHEETS UP THERE? THEY SHOULD LOOK LIKE THIS.

DID YOU GET ONE OF THOSE? OKAY, LET ME COME UP AND I'LL PASS THIS AROUND.

YOU'RE GOING TO SEE HERE THAT YOUR YOUR HOME VALUES.

LAST YEAR YOUR AVERAGE TAXABLE VALUE ON A HOMESTEAD PROPERTY WAS 302,257,000, AND THIS YEAR IT ROSE BY 2.2% TO 309 12. AND I HAVE THAT COMING UP ON ANOTHER SLIDE HERE IN JUST A MOMENT.

THAT'S A GREAT QUESTION. I'LL PASS THIS AROUND FOR YOU.

I KNOW IT'S A LOT TO TAKE IN. YES, SIR. NATE, IS IT FEASIBLE TO UTILIZE HALF OF THAT FUND? IT'S NOT AN ALL OR NOTHING TYPE OF THING. CORRECT. IT IS NOT AN ALL OR NOTHING.

IF YOU'LL RECALL, WE WE SPOKE MANY TIMES ABOUT HOW THE BOND THAT WE PASSED LAST YEAR, THE, THE CO BOND WOULD IMPACT THE TAX RATE. AND WE WERE CALCULATING IF WE HAD BUILT, SAY, AROUND 100 HOMES, WE LANDED AT 84. BY THE WAY, IF WE'D BUILT AROUND 100 HOMES, THAT THAT TOTAL DEBT PICTURE WOULD BE SOMEWHERE IN THE 6 TO 8 CENT RANGE.

AND WE WOULD HAVE THE OPPORTUNITY TO USE IMPACT FEES TO OFFSET THAT.

SO WE CAN STILL ACHIEVE THAT HERE, WILL BY USING SOME OF THOSE FEES, IF YOU SO CHOOSE.

BUT YOU DO NOT HAVE TO USE THEM ALL. AND I WOULD CAUTION YOU AGAINST USING THEM ALL BECAUSE THEY ARE HELPFUL IN SITUATIONS WHERE AN IMPACT FEE ELIGIBLE PROJECT POPS UP. THE BEST EXAMPLE I CAN GIVE YOU RIGHT NOW IS YOUR WASTEWATER PLAN UPDATE YOUR MASTER WASTEWATER PLAN UPDATE.

YOU KNOW, AS WE'RE TALKING TO THESE DEVELOPERS, OUR ENGINEERS CAUTION US ON, HEY, YOUR YOUR PLANS ARE X AMOUNT OF YEARS OLD.

YOU'VE HAD A FEW THINGS COME ONLINE. YOU NEED TO UPDATE THAT PLAN.

SO ONE OF THE THINGS THAT IMPACT FEES CAN BE USED FOR IS UPDATING SOME OF THOSE LONG RANGE PLANS SPECIFIC TO WATER WASTEWATER UTILITIES.

THAT'S VERY HELPFUL OVER OVERALL. YES, SIR. GOOD QUESTION.

ANYTHING ELSE BEFORE WE WE'RE KIND OF AT THAT POINT WHERE WE'RE GOING TO SWITCH FROM TAX RATE INTO WHAT THE BUDGET IS SHAPING UP TO BE, AND EVENTUALLY WE'LL GET ON TO THE REST OF THE ITEMS, WHICH SHOULD FLOW PRETTY QUICKLY.

ALL RIGHT. HEARING NONE, WE'LL MOVE ALONG. SO I MENTIONED EARLIER THAT THE GENERAL FUND I MENTIONED TO THE BUDGET COMMITTEE RATHER THAT THE GENERAL FUND IS SHAPING UP MUCH BETTER THAN IT EVER HAS BEFORE. BUT THAT SAID, WE'RE STILL WE'RE STILL ROUGHLY 430 OR SO THOUSAND DOLLARS OVER IN THE GENERAL FUND. SO THAT MEANS OUR EXPENSES ARE EXCEEDING OUR REVENUES.

AND COUNCIL WILL REMEMBER THIS. WE'VE TAKEN SEVERAL YEARS IN A ROW NOW TO REALLY DIAL IN OUR REVENUES.

FOR EXAMPLE, IN AREAS WHERE WE'RE ANTICIPATING LARGE DOLLARS IN GRANTS.

AND HISTORICALLY, THEY'RE NOT PERFORMING. JEN AND I HAVE GONE INTO THE SYSTEM AND REDUCED THOSE EXPECTATIONS ON GRANTS SUBSTANTIALLY FOR THIS FISCAL YEAR.

OTHER OTHER AREAS SUCH AS PERMIT ACTIVITY OR FEES AND FINES, YOU KNOW, AREAS WHERE THINGS JUST ARE NOT PERFORMING LIKE WE HAD ANTICIPATED.

WHETHER IT'S THE ECONOMY OR WHETHER IT'S BUILDING CONSTRUCTION. I DON'T THINK IT'S A NEGATIVE EXERCISE TO GO THROUGH,

[00:35:02]

BUT I DO THINK IT'S A FISCALLY RESPONSIBLE EXERCISE TO GO THROUGH.

IF THE REVENUES AREN'T MEETING THE BENCHMARKS, THEY NEED TO BE REELED IN.

AND SO WE SPENT A LOT OF TIME DOING THAT. AND SO YOU SEE HERE, THE BIG THE BIG ITEMS ON YOUR GENERAL FUND REVENUES ARE THOSE NEW M AND O DOLLARS FROM THE ANTICIPATED TAX RATE, THE SALES TAX INCREASE.

WE WE RECEIVED OUR ZACH TAX. THAT'S A PARTNER THAT WE USE FOR PROFILING AND FORECASTING OUR SALES TAX NUMBERS.

AND SO THIS FISCAL YEAR, WE HAD BUDGETED CONSERVATIVELY AROUND 2.5% INCREASE IN SALES TAX ON FY 25 NUMBERS. AND WE ARE WELL OUTPERFORMING THAT JUST OVER 10%.

AND SO THAT MODEL ALLOWED FOR US TO GO TO OUR ACTUAL PERFORMANCE AND ADD 5.5%.

SO JUST OVER $600,000 IN SALES TAX INCREASES PROJECTED FOR NEXT YEAR.

AND THEN, OF COURSE, I USE THAT REVENUE TRENDING UNEVENLY, JUST AS A REMINDER TO LET YOU KNOW THAT WE'RE CONSTANTLY LOOKING TO MAKE SURE THESE REVENUES ARE PERFORMING. FLIP ON TO THE EXPENSE SIDE OF THE HOUSE.

AND YOU'LL SEE THE, THE VERY FIRST ONE THAT JUST CONTINUES TO BE VERY ROUGH FOR THE CITY IS HEALTH INSURANCE. OUR BROKER PARTNER HAS TOLD US TO POSTURE FOR 20%, I BELIEVE LAST YEAR THEY TOLD US 25%.

THAT IS JUST A HUGE EXPENSE FOR THE CITY. THAT 20% INCREASE.

QUITE FRANKLY, WE'RE NOT ABLE TO BUDGET FOR ALL OF THAT AND STILL GET THE WORK OF THE CITIZENS AND THE CITY DONE THIS YEAR.

I BELIEVE WE BENCHMARKED IT AT 10 OR 12%, AND THAT REPRESENTS AROUND $200,000.

AND SO THAT IS A HUGE EXPENSE FOR THE CITY TO TACKLE EVERY YEAR.

AND THAT HAS ACTUALLY LED US TO THE PROPOSAL TO THE BUDGET COMMITTEE TO HOLD STEP PLAN INCREASES AND MERIT INCREASES IN AN EFFORT TO TRY TO CONTINUE TO PROVIDE HEALTH CARE FOR THE EMPLOYEES.

SO THE MONEY'S THE LAST THING WE WANT TO DO IS OFFER SALARY INCREASES WHILE ASKING EMPLOYEES TO PAY MORE FOR THEIR HEALTH INSURANCE.

I DON'T BELIEVE THAT'S A SCENARIO THAT'S HISTORICALLY BEEN RECEIVED WELL BY OUR TEAM HERE.

AND WE UNDERSTAND THAT. SO AT THIS POINT WE'RE JUST TRYING TO COVER HEALTH INSURANCES.

I'M PRETTY SURE IT HASN'T BEEN RECEIVED WELL ANYWHERE.

I UNDERSTAND. JUST BEING TRANSPARENT HERE. AND I KNOW WE HAVE CITY STAFF THAT WILL WATCH THIS LATER.

THE. THE LAST THING I WANT TO DO IS GIVE AND TAKE BACK AND I CAN'T I CAN'T RECOMMEND THAT TO THE BUDGET COMMITTEE.

AND THERE ARE SOME IDEAS THAT THEY'RE CREATIVELY HELPING US THINK THROUGH.

SO BETWEEN NOW AND THE NEXT READING OF YOUR BUDGET, THERE MIGHT BE A DIFFERENT OPTION.

BUT FOR NOW, THIS IS THE REALITY THAT WE HAVE TO PLAN FOR.

AND SO THAT'S WHAT WE'VE PRESENTED FOR YOU. THE NEXT BIG ITEM AND THE TWO, THE TWO BASIC PRIORITIES FOR THIS YEAR WERE HEALTH CARE AND PUBLIC SAFETY.

AND SO THIS YEAR, WE'RE PROPOSING TO ADD TWO MORE FIREFIGHTERS TO THE FIRE STATION STAFF, ALONG WITH THE FUNDS IT TAKES TO ALLOW FOR OFFICERS, WHICH WOULD BE CAPTAINS, I BELIEVE, AND DRIVERS AT THEIR NEW FIRE STATION, WHICH WILL OPEN IN JANUARY. AND THEN ON THE POLICE SIDE OF THE HOUSE ABSORBING TWO OFFICERS FROM THE SRO PROGRAM AT 70% OF THEIR EXPENSE AND ADDING ONE MORE FULL TIME DISPATCHER BOTH DEPARTMENTS EXPRESSING AND FEELING THE PRESSURES OF OVERTIME. AND SO WE'VE ALSO ADDRESSED THEIR OVERTIME WITH A FEW DOLLARS IN THE CURRENT DRAFT BUDGET.

SO I'LL PAUSE RIGHT THERE AND ASK WHAT QUESTIONS DO YOU HAVE SPECIFIC TO THE GENERAL FUND BUDGET AS IT SITS TODAY? ANYBODY? OKAY. HEARING NONE. ALL OF THAT COULD BE SUMMED UP WITH THIS SHEET THAT SHOULD BE AT YOUR DAIS, WHICH IS A REVENUES ARE ON THE TOP, THE REVENUES DIALED IN BY DEPARTMENT.

AND THEN ON THE BOTTOM ARE EXPENSES ALSO LISTED OUT BY DEPARTMENT.

SO WE LOOK AT OUR WATER FUND. SIMILAR STORY HERE.

BUT THE BIG DIFFERENCE HERE IS YOU'LL RECALL LAST YEAR AND I'LL CALL THIS FUND TWO WATER FUND.

THOSE ARE INTERCHANGEABLE. SO FOR THOSE WHO MAY PICK THIS UP LATER, THE WATER FUND IS EVERYTHING THAT COVERS WATER, SEWER AND TRASH SERVICE, OUR ENTERPRISE FUND.

AND SO YOU'LL REMEMBER LAST YEAR WE WENT THROUGH THE EXERCISE OF A RATE STUDY, GETTING OUR WATER RATES WHERE THEY WERE, WHERE THEY SHOULD BE. AND THAT CAME WITH A FIVE YEAR RECOMMENDATION FOR STEADY, STEADILY ADJUSTING THOSE RATES YEAR OVER YEAR.

[00:40:09]

SO I BELIEVE WE'RE IN LINE FOR ABOUT A 4.5% INCREASE ON OUR WATER SEWER FEES.

AND THAT WILL COVER THE DIFFERENCE HERE IN THE WATER FUND IF WE STICK TO THAT PLAN.

AND IF I RECEIVE THAT NOD BOTH TONIGHT THROUGH THE BUDGET COMMITTEE AND INTO THE AUGUST 10TH DATE, THEN THAT WILL BE AN ITEM WE BRING TO YOU IN SEPTEMBER TO COMPLEMENT AN OCTOBER 1ST BUDGET START.

THIS IS PROBABLY THE BIGGEST AREA OF CHANGE FOR US IS THE DEBT SERVICE.

THE NEW DEBT SERVICE REQUIREMENT. SO OUR OUR GENERAL DEBT SERVICE, WE ADDED THE NEW 2026 SERIES, WHICH COVERED THE FIRE STATION TWO CONSTRUCTION COVERED THE FIRST 30% ENGINEERING FOR BOTH THE WATER PLANT, THE NEW WASTEWATER PLANT THE GRAVITY SEWER LINES THAT IT TAKES TO GET TO THOSE LOCATIONS ALONG WITH LAND PURCHASE FOR THE, FOR THE PURPOSES OF EXPANDING BOTH OF THOSE PLANTS.

THAT WAS ALL INSIDE OF THE 26 DEBT PACKAGE THAT WE PASSED BY CO LAST YEAR.

AND SO THIS YEAR WE GET OUR FIRST PAYMENT OF AN ADDITIONAL 1.286 MILLION.

AND SO IF YOU RECALL THE I&S SIDE OF THE CONVERSATION IN THE VERY BEGINNING, THAT'S HOW WE LANDED HERE ON THE INCREASE THE MAJORITY INCREASE ON OUR TAX. SO THIS IS HOW YOU'RE SHAPING UP. AS LONG AS WE'RE ABLE TO BALANCE THE GENERAL FUND BETWEEN NOW AND OCTOBER OR EXCUSE ME, AUGUST 10TH. THIS WILL BE VERY CLOSE TO YOUR FINAL NUMBERS, AND THIS IS HOW THE OVERALL BUDGET OF THE CITY IS SHAPING UP TO DATE.

ALL RIGHT. SO TONIGHT I THINK THE BIGGEST THING IS DO YOU HAVE QUESTIONS OR RESERVATIONS ABOUT MOVING ON TO ITEM FIVE, WHICH WOULD BE CONSIDERING A SCHEDULE, A PUBLIC HEARING ON THE BUDGET FOR FISCAL YEAR 2027? JUST FOR CLARITY, WE WILL NEED TO ESTABLISH A PUBLIC HEARING BOTH FOR THE BUDGET AND FOR THE TAX RATE.

TWO SEPARATE THINGS. WE SET THE BUDGET IN MOTION FIRST, AND THEN THE TAX RATE COMES RIGHT BEHIND THAT.

I THINK THE QUESTION THAT WE NEED TO ANSWER IS, DO WE WANT TO STAY AT THE VOTER APPROVAL RATE, OR IS THERE A DESIRE TO GO ABOVE THE VOTER APPROVAL RATE? THAT WOULD GUIDE US FURTHER ON OUR STATUTORY TIMELINES.

AND IF I NEED TO BACK UP FROM HERE, I CAN CERTAINLY DO THAT.

I KNOW YOU SAID YOU TALKED TO THE BUDGET COMMITTEE ABOUT USING JUST THE VOTER APPROVAL.

WHAT PUSHED YOU THAT WAY? I THINK THE FACT THAT THE IMPACT FEE FUND IS I MEAN, IT'S FAIRLY LEAN.

IT'S ONLY $550,000 OR SO. I DO ANTICIPATE IT REFILLING ITSELF.

BUT WE'VE ALL SEEN AND WE'VE, WE'VE NOTICED, YOU KNOW, THE EBBS AND FLOWS OF THE CONSTRUCTION MARKET.

THERE ARE COMMERCIAL PROJECTS THAT WE ANTICIPATED WOULD ALREADY BE OCCUPIED TODAY AND THEY'RE JUST GETTING STARTED.

SO I THINK WE JUST HAVE TO BE CAUTIOUS ON COUNTING ON THOSE IMPACT FEE DOLLARS TOO MUCH BEFORE THE FUND IS STEADILY REFILLING ITSELF. AND SO THAT WAS MY HEART BEHIND RECOMMENDING THAT TO THE BUDGET COMMITTEE BUT CERTAINLY OPEN TO ADDITIONAL CONVERSATION OR IF ANY OF THE COMMITTEE MEMBERS

[5. Consider and schedule public hearing on the budget for fiscal year 2026/2027. ]

WANT TO SPEAK SPECIFICALLY TO HOW THEY HEARD IT.

OH, I WAS I WAS JUST GOING TO MAKE A COMMENT ON THE PRIOR YEAR.

WE HAD, I WANT TO SAY 12.7. SOMEBODY MAY CORRECT ME 12.7% INCREASE IN POPULATION.

AND WE, WE JUST GOT SOME DATA BACK IN THE LAST MONTH THAT SHOWED OUR GROWTH RATE AT WASN'T IT 13 OR 14? IT WAS HIGHER. YES. I THINK YOU'RE PROBABLY REFERRING TO THE COG DATA THAT CAME OUT FOR THE REGION.

IT DID SHOW US A LITTLE BIT HIGHER THAN WHAT WAS ORIGINALLY REPORTED.

THERE'S LOTS OF DIFFERENT PEOPLE THAT DO DEMOGRAPHICS AND POPULATION FOR US.

FOR EXAMPLE, GREG, CORRECT ME IF I'M WRONG. WAS IT TRWD THAT TOLD US OUR POPULATION WAS 9300 OR SOMETHING LIKE THAT.

SO SOME GROUPS COUNT PERMITS THROUGH THE OFFICE.

[6. Consider a Resolution of the City Council of the City of Decatur, Texas, approving the 2026 Certified Property Tax Values for the City of Decatur, Texas; designating an officer to submit the No New Revenue and Voter approval rates to the City Council, the same officer being Authorized to also certify the rates with the Comptroller prior to presentation to council; authorizing the officer to submit the certified property tax rates to the tax assessor collector; and providing an Effective date. Resolution R2026-07-17.]

SOME GROUPS COUNT WATER CONNECTIONS. SO IT'S EVEN HIGHER THAN WHAT THE COG WAS.

YES. INTERESTING. WELL, I MEAN, WAS THERE A QUESTION? NO, IT'S JUST A COMMENT ABOUT DECATUR IS GROWING.

OH YES SIR. THE THE ISSUE IS AND WE WE SEE THAT WE SEE THAT WITH OUR OUR VALUES, YOU KNOW, THE GROWTH IS WE FEEL IT THESE THESE DEPARTMENT HEADS FEEL THE DEMAND OF MORE PEOPLE BEING IN THE CITY EVERY DAY.

[00:45:04]

BUT THE PROBLEM IS IT TAKES A WHILE FOR THE REVENUES TO CATCH UP TO THAT, SPECIFICALLY SALES AND PROPERTY TAX.

AND ALSO, UNFORTUNATELY, OUR, OUR, THE PROPERTY.

WELL, IT DEPENDS ON HOW YOU LOOK AT THIS. OUR PROPERTY VALUES DID GO DOWN ON AVERAGE FROM 2025 TO 26 COMPARISON.

YES. SO THERE'S ANOTHER DEFICIT THAT TO EVEN BE MADE UP FOR THIS DESPITE HOUSE BILL NINE.

YOU'RE RIGHT. AND I BELIEVE THAT IF YOU LOOK AT THIS CHART SPECIFICALLY, THAT TELLS THE STORY THAT YOU'RE COMMENTING TO.

COUNCILMAN MCQUISTON, I THINK I WAS NOT EXPECTING ONLY A 2% INCREASE.

I DON'T KNOW THAT ANY CITY MANAGER, CERTAINLY IN NORTH TEXAS WAS EXPECTING THAT.

WE'RE NOT THE ONLY COUNCIL MANAGER GROUP THAT'S DEALING WITH THIS PARTICULAR SCENARIO, AND SOME MAY BE DOING IT AS WE SPEAK.

DO YOU NEED ANYTHING ELSE FROM US RIGHT NOW ON ITEM FOUR? JUST BEFORE WE MOVE FORWARD, I DO JUST WANT TO MAKE SURE WE'RE ALL ON THE SAME PAGE ABOUT ITEM FIVE, WHICH WOULD EFFECTIVELY SET EVERYTHING ELSE IN MOTION FROM THIS POINT.

SO ITEM FIVE IS CONSIDERING AND SCHEDULE PUBLIC HEARING ON THE BUDGET FOR FISCAL YEAR 2026-27.

ALL RIGHT. SO I HOPE THAT ITEM FOUR'S PRESENTATION COVERED THE REMAINDER OF THESE ITEMS FOR US TONIGHT.

AND THOSE OF YOU THAT HAVE BEEN ON COUNCIL QUITE SOME TIME WILL KNOW HOW THIS WORKS.

THERE WILL BE SOME RECORD VOTES THAT WE'LL CALL FOR, BUT THE FIRST ITEM IS TO CONSIDER AND SCHEDULE A PUBLIC HEARING ON THE BUDGET.

SO WE DO HAVE DRAFTED LANGUAGE FOR YOU IF YOU'RE READY TO MOVE THAT FORWARD.

I WOULD JUST RECOMMEND IF THERE'S A LEVEL OF CONVERSATION THAT NEEDS TO HAPPEN RIGHT NOW. I'M HAPPY TO ANSWER QUESTIONS.

MR. MAYOR, I MOVE TO CONSIDER AND SCHEDULE A PUBLIC HEARING ON THE PROPOSED BUDGET FOR FISCAL YEAR 26-27 FOR THE NEXT REGULAR MEETING OF THE DECATUR CITY COUNCIL, AUGUST 10TH, 2026 AT 6 P.M.. SECOND.

I'VE GOT A MOTION FROM LINDA AND A SECOND FROM WILL.

ALL THOSE IN FAVOR, PLEASE SAY AYE. AYE. THOSE OPPOSED SAY NO.

THE AYES CARRY IT. ITEM SIX CONSIDER A RESOLUTION OF THE CITY OF DECATUR OR THE CITY COUNCIL OF THE CITY OF DECATUR, TEXAS, APPROVING THE 2026 CERTIFIED PROPERTY TAX VALUE OF THE CITY OF DECATUR, TEXAS, DESIGNATED AN OFFICER TO SUBMIT THE NO NEW REVENUE AND VOTERS APPROVED RATE TO THE CITY COUNCIL.

THE SAME OFFICER BEING AUTHORIZED TO ALSO CERTIFY THE RATE WITH THE COMPTROLLER PRIOR TO THE PRESENTATION TO THE COUNCIL.

WE ARE AT THAT POINT WHERE YOU WILL ADOPT A RESOLUTION ACCEPTING THE CERTIFIED PROPERTY TAX VALUE, AND I APOLOGIZE, I DON'T HAVE A PACKET OR A PAGE NUMBER.

THAT RESOLUTION IS IN YOUR PACKET FOR YOU RIGHT NOW.

CAN YOU GO TO THAT REAL QUICK? THANK YOU.

THERE WE GO. GO, GO UP. JUST ONE SECOND. ALL RIGHT.

SO HERE'S THE CERTIFIED APPRAISAL ROLL FOR FOR THE TAX YEAR 2026.

AND IT ECHOES THAT NUMBER THAT I'VE USED IN MY PRESENTATION TONIGHT FOR YOU.

AND SO THAT IS THE NUMBER THAT YOU WILL BE CERTIFYING IF YOU GO ON DOWN TO THE RESOLUTION, IT SIMPLY TAKES THE DETAILS THERE AND PUTS IT INSIDE OF THIS RESOLUTION AND THIS WILL BE A RECORD VOTE.

[7. Consider proposing an ad valorem tax rate for fiscal year 2026/2027 if proposed tax rate will exceed the Voter Approval tax rate or the No New Revenue tax rate, take a record vote and schedule public hearing. ]

MAYOR. WHEN YOU'RE READY. ALL RIGHT. SO WE'RE GOING TO HAVE TO DO A RECORD VOTE.

SO EACH PERSON WILL GO VOTE ONE BY ONE. WE'LL TAKE A MOTION AND A SECOND.

OKAY. THEN YOU'LL DO A RECORD VOTE. IT IS AN ACTION ITEM.

MR. MAYOR, I MOVE TO APPROVE RESOLUTION R2026-07-17, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DECATUR, TEXAS, APPROVING THE 2026 CERTIFIED PROPERTY VALUE PROPERTY TAX VALUES, DESIGNATING AN OFFICER TO SUBMIT THE NO NEW REVENUE AND VOTER APPROVAL TAX RATES TO THE CITY COUNCIL AND TO CERTIFY THOSE RIGHTS WITH THE TEXAS CONTROLLER PRIOR TO COUNCIL PRESENTATION AUTHORIZING THE DESIGNATED OFFICER TO SUBMIT THE CERTIFIED TAX RATES TO THE TAX ASSESSOR COLLECTOR AND PROVIDING AN EFFECTIVE DATE.

I SECOND. SECOND. ALL RIGHT. WE WILL TAKE A ROLL.

LET ME LET ME CHECK ONE THING. I, SUSIE HAD SENT OUT AN EMAIL ABOUT A MISIDENTIFICATION ON THE NUMBER FROM ONE AGENDA DRAFT TO THE NEXT. AND I WANT TO VERIFY THAT THIS IS INDEED 2026 0717

[00:50:03]

VERSUS WHAT I HAVE, WHICH I BELIEVE TO BE CORRECT, WHICH IS.

2026 0721. IF YOU'LL GIVE ME JUST ONE MOMENT.

YES, THIS IS EXACTLY WHAT SHE TOLD US. TYPOGRAPHICAL ERROR IN ITEM SIX.

THE CORRECT RESOLUTION NUMBER IS 2026 0721. SO THE MOTION IS FINE.

AND THE SECOND, IF YOU ALL ACCEPT THE DIFFERENT NUMBER.

MR. MAYOR, MAKE A MOVE TO ACCEPT THE CORRECTION OF THE NUMBER.

I SECOND. ALL RIGHT. ARE WE READY TO TAKE A VOTE? ALL RIGHT. REX. AYE. MIKE MCQUISTON. AYE. EDDIE AYE.

MELINDA REEVES. AYE. AMANDA. CARPENTER. AYE. THE AYES HAVE IT.

THOSE OPPOSED? NO. ALL RIGHTY. ITEM SEVEN. HERANDI, IF YOU'LL GO BACK TO THE BUDGET PACKET, PLEASE, AND MOVE US TO THE AGENDA ITEM FOR NUMBER SEVEN.

SO THIS IS WHERE MAYOR AND COUNCIL, YOU HAVE THE OPPORTUNITY TO SET YOUR TAX RATE IN MOTION.

THE DOCUMENT THAT WE PREPARED FOR YOU HAS THE VOTER APPROVAL RATE THAT CAME FROM THE REPORT.

[8. Consider first reading of an Ordinance of the City of Decatur, Texas adopting a budget for the fiscal year beginning October 1, 2026, and ending September 30, 2027, in accordance with the City Charter and state law; providing for the filing of the budget as represented in draft form; providing for the incorporation of premises; providing a cumulative repealing clause; providing severability; and providing an effective date. Ordinance 2026-08-22.]

AGAIN, THIS DOCUMENT THAT LOOKS LIKE THIS, THE VOTER APPROVAL RATE BEING 0.676611. THAT IS THE RECOMMENDATION OF STAFF.

THE ONLY VARIABLE IS WOULD YOU LIKE US TO CONSIDER REDUCING THAT WITH IMPACT FEES OR APPROVING IT AS IS? REMEMBER THIS IS A PROPOSED TAX RATE. YOU DO HAVE THE OPPORTUNITY TO ADJUST IT DOWN BETWEEN THE FIRST READING OF THE ORDINANCE AND THE SECOND READING OF THE ORDINANCE.

I THINK AT THIS POINT IN TIME, I'M COMFORTABLE WITH ACCEPTING IT AS IS, WITH KNOWING THAT WE CAN ALWAYS ADJUST DOWN.

THAT'S FAIR. ANYBODY ELSE HAVE ANY QUESTIONS? I DO APOLOGIZE. YOU'LL NEED TO READ THE BECAUSE THIS WAS A FLUID ITEM.

DEPENDING ON WHICH TAX RATE YOU WENT WITH, YOU WILL NEED TO READ OFF THE TAX RATE FROM THE CALCULATION PAGE.

[9. Consider first reading of an ordinance of the City of Decatur, Texas approving the 2026 certified appraisal roll; levying ad valorem taxes for 2026 on all taxable property within the corporate limits of the city to provide revenues for current expenses and interest and sinking fund requirements; providing due and delinquent dates; providing for the incorporation of premises; providing a cumulative repealing clause; providing severability; and providing an effective date. Ordinance 2026 08-23. ]

AND JUST AS A REMINDER TO THOSE WHO MAY BE WATCHING THIS OR PICK IT UP LATER, THIS CALCULATION SHEET WILL BE PART OF OUR BUDGET PACKET.

THAT'S A LEGISLATIVELY MANDATED REQUIREMENT. SO WE ARE CHOOSING THE CALCULATED VOTER APPROVAL RATE THAT IS AT YOUR DAIS.

AND SO WHEN YOU PROPOSE THAT AD VALOREM TAX RATE YOU WILL NEED TO PROPOSE IT AS THE AS PRINTED THERE ON THE CALCULATION SHEET.

AND THEN WE WILL TAKE A RECORD VOTE BEHIND THAT.

DO WE HAVE A PRINTED MOTION THAT THAT YOU WANTED US TO USE OR? MAYOR, I APOLOGIZE, I DID NOT DO THAT FOR YOU BECAUSE I WASN'T EXACTLY SURE WHAT DIRECTION WE WOULD BE MOVING TONIGHT.

I UNDERSTAND. THIS IS NUMBER SEVEN. IT IS NUMBER SEVEN.

OKAY. I WILL ATTEMPT TO DO THAT. IF I MESS UP.

I APOLOGIZE IN ADVANCE. I MOVE THAT OR I, I MOVE THAT WE ACCEPT THE AD VALOREM TAX RATE FOR FISCAL YEAR

[V. CONSENT AGENDA ITEMS ]

2026, 2027 OF 0.676611, AS DISCUSSED. SECOND, JUST A POINT OF CLARITY. THAT IS THE VOTER APPROVED RATE AS IT IS CALCULATED TODAY.

MAYOR. ALL RIGHT. WE HAVE A FIRST FROM MELINDA AND A SECOND FROM JAKE.

ANY OTHER DISCUSSION? ALL RIGHT. WE WILL NEED TO TAKE A ROLL FOR A VOTE AGAIN.