Aug 10, 2026 City Council

[00:00:01]

TIME IS NOW 6:00. WE'RE GOING TO CALL THIS MEETING TO ORDER.

[I. CALL TO ORDER ]

IF EVERYBODY CAN STAND, WE'RE GOING TO HAVE A MOMENT OF SILENCE.

AND THEN ANNA LEE IS GOING TO LEAD US IN THE PLEDGE.

TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS.

1 NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

ALRIGHT, THEN. WE HAVE A COUPLE OF SMALL PRESENTATIONS.

DON'T RUN OFF HANDLEY, DON'T RUN OFF YET. ALL RIGHT, EVERYBODY, COME DOWN REAL QUICK WITH US.

ANNA LEE DID SOME HARD WORK FOR US. COME ON OVER HERE FOR ME.

ALL RIGHTY. IN GRATEFUL RECOGNITION OF YOUR DEDICATED COMMUNITY SERVICE TO THE CITY OF DECATUR AND CLEANING, RESTORING AND REFRESHING THE HISTORIC AMERICAN M1 MORTAR DISPLAY AT MEMORIAL PARK.

YOUR TIME AND SERVICE SHOWS A DEEP COMMITMENT TO THE CITY OF DECATUR AND COMMUNITY AND PRESENTATION OF OUR SHARED HISTORY.

THROUGH YOUR EFFORTS, THE IMPORTANT PIECE OF OUR MILITARY HERITAGE HAS BEEN CARED FOR AND REFRESHED SO THAT THE.

SO THAT WE MAY CONTINUE TO HONOR THOSE WHO SERVED AND MAINTAIN A MEANINGFUL PART OF OUR COMMUNITY.

YOUR 8 HOURS OF DEDICATED SERVICE TO THE CITY OF DECATUR REFLECTS REMARKABLE COMMITMENT TO OUR COMMUNITY, AND WE WILL ENJOY AND APPRECIATE BY DECATUR RESIDENTS AND VISITORS FOR YEARS TO COME.

THANK YOU SO MUCH. [APPLAUSE] EVERYBODY COME DOWN.

THANK YOU SO MUCH. ALL RIGHT, WE HAVE 1 MORE.

DON'T RUN AWAY. DON'T RUN AWAY. NO. NOT YOU. YOU'RE.

YOU. NOW GET TO GO HOME. ALL RIGHT. PAM, CAN YOU COME UP HERE? WE'RE REALLY UPSET WITH YOU. ALL RIGHT. SOME OF YOU MAY HAVE READ IT IN THE PAPER.

PAM IS A PROSECUTOR OF THE YEAR BY THE TEXAS MUNICIPAL COURT ASSOCIATION.

IT IS GIVEN TO A PROSECUTOR THAT HAS DEMONSTRATED EXCEPTIONAL SERVICE, LEADERSHIP AND DEDICATION TO THE JUSTICE SYSTEM AT THE MUNICIPAL LEVEL.

THE TEXAS MUNICIPAL COURT ASSOCIATION RECOGNITION REPRESENTS THAT SAM HAS MADE NOTABLE CONTRIBUTIONS TO HER COMMUNITY AND TO HER PROFESSION THROUGH EFFECTIVE CASE HANDLING, COMMUNITY ENGAGEMENT, AND PROFESSIONAL INTEGRITY.

MOST OF Y'ALL UNDERSTAND THAT HOW LUCKY WE ARE TO HAVE A FULL TIME ATTORNEY ON STAFF, ESPECIALLY AT A CITY OF OUR SIZE, AND TO HAVE ONE THAT'S AT THE LEVEL THAT PAM IS AT AND THAT SHE'S BEING RECOGNIZED BY THE STATE, YOU'RE GOING TO GET THE 2ND COIN. THANK YOU. THANK YOU SO MUCH.

FROM THE MAYOR. THANK YOU SO MUCH. THANK YOU.

[APPLAUSE] THANK YOU SO MUCH. THANK YOU. NOW WE CAN SIT DOWN.

BEFORE YOU MOVE ON IF I COULD JUST SAY A COUPLE THINGS. THE THE CANON, THE M1 MORTAR LAUNCHER THAT MISS ANNA LEE SO KINDLY REFRESHES OUT HERE AT OUR WAR MEMORIAL.

IF YOU DIDN'T GET THE CHANCE TO SEE THAT ABOUT THREE WEEKS AGO, IT LOOKED ROUGH.

SO ROUGH, IN FACT, THAT THE FEDERAL GOVERNMENT HAD TOLD DELVIN AND I A COUPLE OF TIMES THAT WE NEEDED TO GET SOME PAINT ON IT.

SHE FOUND THAT PROJECT AND IT LOOKS BEAUTIFUL. NOW. IT LOOKS ALMOST BRAND NEW.

SO JUST AGAIN, IF YOU HAVE THE OPPORTUNITY, SWING BY THERE ON YOUR WAY OUT.

SO THAT'S WHERE THAT PROJECT IS AT. IF YOU WANT TO TAKE A LOOK AT IT.

THANK YOU AGAIN.[APPLAUSE] ALL RIGHTY. SUSIE, DO WE HAVE ANYBODY SPEAKING TONIGHT? ALL RIGHT. ITEM NUMBER 1. CONSIDER FIRST READING FOR ORDINANCE APPROVING THE AUTHORIZATION OF THE

[1. Consider first reading of an ordinance approving and authorizing the 2026 Annual Update to the Service and Assessment Plan and Assessment Rolls for the Vista Park Public Improvement District, including the collection of the 2026 annual installments and resolving other matters. Ordinance 2026-08-24 ]

MAYOR AND COUNCIL. ITEM 1 AND 2 ARE VERY SIMILAR.

1 IS FOR VISTA PARK. JUST A REMINDER FOR THOSE WHO MAY BE WATCHING NOW OR LATER WHEN WE HAVE A PID, THERE'S A SERVICE AND ASSESSMENT PLAN THAT COMES WITH IT, MEANING HOW MANY OF THE ASSESSMENTS ARE IN PLACE VERSUS HOW MANY HAVE BEEN PAID OFF, AND WHAT FUNDS HAVE GONE INTO THAT PID? THIS IS JUST OUR ANNUAL REQUIREMENT THAT'S SET FORTH BY THE STATE OF TEXAS.

AND WE APPROVE THESE IN THE FORM OF AN ORDINANCE. SO YOU'LL SEE THIS AGAIN AT YOUR NEXT APPOINTED COUNCIL MEETING TIME.

SO THAT WOULD BE THE SAME BASIC TEE UP FOR ITEM 2.

[00:05:03]

HAPPY TO ANSWER QUESTIONS. ANY QUESTIONS? ALL RIGHT.

[2. Consider first reading of an ordinance approving and authorizing the 2026 Annual Update to the Service and Assessment Plan and Assessment Rolls for the Paloma Trails Public Improvement District, including the collection of the 2026 annual installments and resolving other matters. Ordinance 2026-08-25 ]

POSTED AFTER THIS MEETING, THEY'LL BE AVAILABLE ON OUR WEBSITE FOR ANYONE IN THE PUBLIC WHO WANTS TO READ THROUGH THOSE OR PRINT THEM OUT FOR THEIR PURPOSES IN A RESIDENTIAL DEVELOPMENT. OKAY. THEY COULDN'T SLEEP. ALL RIGHT, ITEM NUMBER 3 DISCUSS AND CONSIDER TAKING ACTION ON THE PURCHASE OF A 2026

[3. Discuss and consider taking action to purchase a 2026 Chevrolet Equinox from James Wood Motors for the Police Department. ]

MAYOR. COUNCIL. THIS ITEM IS PURCHASED USING THE FUNDS FROM THE AUCTION THAT WAS RECENTLY HELD THAT COVERED THE BULK OF THE ITEMS FROM THE OLD POLICE FACILITY.

CHIEF CAMPBELL IS TAKING ON A COUPLE OF NEW OFFICERS THIS YEAR FROM THE SRO CHANGEOVER.

ONE OF THEM IS THE RANK OF DETECTIVE AND WILL NEED A VEHICLE.

SO THIS PURCHASE HERE WITH THOSE FUNDS WILL ALLOW FOR THAT VEHICLE TO BE PUT INTO CIRCULATION.

PURCHASED RIGHT HERE LOCALLY AT JAMES WOOD FOR A TOTAL VALUE OF $28,970.52.

I HAVE ANY QUESTIONS. CHIEF CAMPBELL IS READY FOR QUESTIONS IF YOU GOT THEM. MOTION TO APPROVE ITEM I'LL SECOND THAT. I'VE GOT A FIRST FROM MIKE AND A SECOND FROM WILL.

ALL IN FAVOR, SAY AYE. AYE. OPPOSED? SAY NO. THE AYES CARRY.

ITEM NUMBER 4. DISCUSS DISCUSSION OF THE PUBLIC FISCAL YEAR 2027 PROPOSED BUDGET AND PROPOSED TAX RATE.

[Items 4. & 5.]

SO THIS PRESENTATION WILL ACTUALLY COVER ITEMS 4 AND 5 TONIGHT.

I DON'T SUSPECT ACTION BUT LET'S TALK THROUGH IT AND JUST CONFIRM THAT WE'RE ALL ON THE SAME PAGE.

A LOT OF MOVING PIECES WITH THIS YEAR'S BUDGET.

SOME OF THESE SLIDES ARE VERY FAMILIAR TO YOU, OUR BUDGET TIMELINE.

AND RIGHT NOW WHERE WE'RE AT, WE ARE GETTING READY TO APPROVE A BUDGET TO SET IN MOTION FOR FY 27.

JUST SOME KEY DEFINITIONS THAT ARE IMPORTANT.

AND, AND PAM, CORRECT ME IF I'M WRONG, DOES THE MAYOR NEED TO PUT US INTO A PUBLIC HEARING AS ADVERTISED? YES HE DOES. I HAD ADVISED HIM FOR YOU TO DO YOUR PRESENTATION FIRST AND THEN FOR HIM TO OPEN THE PUBLIC HEARING.

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

THE NO NEW REVENUE, MAINTENANCE AND OPERATION RATE IS SIMPLY THAT THAT IS ALLOWED FOR THE PURPOSES OF GENERAL FUND MAINTENANCE AND OPERATION.

AND THEN THE VOTER APPROVAL IS THAT SAME RATE PLUS 3.5% INCREASE.

AND THAT'S ON THAT'S AN INCREASE ON THE RATE ITSELF, NOT AN INCREASE ON THE DOLLARS COLLECTED.

SO THAT THROWS PEOPLE OFF. SOMETIMES THE DE MINIMIS RATE IS A RATE THAT THE CITY MAY ELECT TO TAKE IN LIEU OF ITS 3.5% INCREASE.

THE MUNICIPALITY MAY OFFER OR ELECT TO TAKE A HALF $1 MILLION LEVY.

AND IN OUR CASE THIS YEAR, THAT DE MINIMIS RATE WOULD BE 0.033821 PENNIES.

SO JUST OVER $0.03 WOULD LEVERAGE HALF $1 MILLION TOWARDS THE PURPOSES OF MAINTENANCE AND OPERATION.

THAT IS NOT WHAT WE'LL BE PROPOSING TO YOU THIS YEAR, AND I'LL MAKE SENSE OF THAT HERE IN JUST A MOMENT.

THE UNUSED INCREMENT RATE THE UNUSED INCREMENT INCREMENT RATE IS FOUND IN OUR.

IT'S CALLED OUR TRUTH AND TAXATION FORM. IF A MUNICIPALITY STAYS FLAT OR IF THEY CHOOSE NOT TO TAKE THEIR INCREASES AT THAT 3.5% MARK, THEN THAT DOES BUILD UP WHAT'S CALLED UNUSED PENNIES.

IN OUR SCENARIO, AS I'VE TOLD YOU, SEVERAL MEETINGS IN A ROW HERE, WE HAVE NO UNUSED INCREMENT BECAUSE WE'RE GROWING TOO FAST.

WE NEED EVERY PENNY TO LAND ON THE TAX RATE. SO HERE'S SOME GENERAL GUIDANCE FOR US.

IF WE STAY BELOW THE VOTER APPROVAL RATE, THEN THERE'S NO ELECTION REQUIRED.

IF WE GO ABOVE THE VOTER APPROVAL RATE BUT BELOW DE MINIMIS, THERE MAY BE A CALL FOR PETITION BY THE CITIZENS.

IF YOU GO ABOVE THE VOTER APPROVAL RATE AND WE DON'T CALCULATE DE MINIMIS AT ALL, MEANING WE DON'T EVEN OFFER THAT RATE ON OUR PUBLIC NOTICES, AN ELECTION MAY BE REQUIRED. AND THEN OBVIOUSLY, IF YOU GO ABOVE DE MINIMIS AND ABOVE THE VOTER APPROVAL RATE, YOU WILL BE FORCED TO PUT ANY INCREASES ON A BALLOT.

SO MY GUIDANCE TONIGHT WILL BE VOTER APPROVAL RATE.

AND WE CAME TO THAT CONCLUSION THROUGH OUR BUDGET COMMITTEE PROCESS.

SO JUST A QUICK SHOUT OUT TO THE BUDGET COMMITTEE MEMBERS.

COUNCILMAN HAYES. COUNCILWOMAN CROSS. COUNCILWOMAN REEVES.

AND THEN JEN FINANCE DIRECTOR, SUMMER WILKINSON, OUR HUMAN RESOURCES, AND JEN EXCUSE ME, DAWNELLE,

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AND THEN OF COURSE, MYSELF AS YOUR BUDGET OFFICER.

SO TO DATE, WE'VE HAD REALLY 4 KEY MEETINGS THAT LED US TO THIS BUDGET, WHICH WE FINALLY HAVE BALANCED.

I'M VERY PLEASED TO SAY THAT WE MET WITH OUR DEPARTMENT HEADS ON JUNE 16TH AND JUNE 18TH, JUST TO HEAR WHAT THEIR NEEDS, THEIR CONCERNS WERE, WHAT THEY WOULD NEED TO MAKE THIS YEAR'S BUDGET WORK FOR THEM.

AND I HAVE TO GIVE A SHOUT OUT TO OUR STAFF. THEY KNEW THAT IT WAS GOING TO BE A VERY UNUSUAL YEAR BECAUSE OF SOME OF THE IMPLICATIONS COMING DOWN THE PIPE, AND EVERYONE ON THE TEAM GAVE US WHAT I THINK ARE VERY HUMBLE REQUESTS, VERY MINIMAL REQUESTS, AND YOU'LL SEE THAT REFLECTED HERE IN JUST A MOMENT WHEN I PUT THE EXPENSES AND THE REVENUES BEFORE YOU.

WE THEN MET WITH BUDGET COMMITTEE TWICE. ONE WAS JUST A QUICK CATCH UP BEFORE COUNCIL MEETING.

HEY, HERE'S WHAT WE'RE THINKING. AND IF YOU HAVE ANY SENIORITY, WHICH MOST OF YOU DO HAVE SENIORITY ON COUNCIL, OR AT LEAST YOU UNDERSTAND THE MUNICIPAL PROCESS, WE GET PUT INTO THIS HURRY UP MODE THIS TIME OF YEAR TO ROLL OUT NUMBERS AND AND CRUNCH A BUDGET TOGETHER. AND THEN WE HAVE TO KIND OF WAIT ON OUR PARTNERS AT THE COUNTY TO, TO DO THEIR PART OF THE TAX CALCULATIONS AND THE VALUE ESTIMATES AND THAT SORT OF THING.

SO WE GET IN THIS LIMBO SCENARIO. SO WE CALLED FOR ANOTHER MEETING ON AUGUST 7TH, WHICH WAS LAST FRIDAY, AND THAT'S WHERE THE BUDGET COMMITTEE CAME TOGETHER WITH SOME REALLY GREAT IDEAS.

AND WE HAVE BALANCED OUT YOUR BUDGET. SO LET'S START WALKING THROUGH THIS TAX RATE FIRST.

SO IF ANYBODY'S WATCHING THIS NOW, OR MAYBE YOU PICK THIS UP LATER, THIS IS A DIFFERENT WAY THAN WE NORMALLY SHOW THIS SLIDE TO YOU.

TALKING ABOUT PROPERTY VALUES SPECIFICALLY ALL THE WAY TO THE LEFT OF THE SCREEN IS THE CURRENT FISCAL YEAR FDAWNELLEY 26 THAT WE'RE IN PROPERTY VALUES JUST RIGHT BELOW 1.5 BILLION. AND THAT WAS AN INCREASE OF ABOUT 7.5% FROM THE PREVIOUS YEAR.

AND ABOUT 17 MILLION OF THAT WAS NEW CONSTRUCTION.

WHEN WE WERE PUTTING TOGETHER OUR INITIAL INITIAL PROPOSED BUDGET FOR YOU WE HAD WHAT WE THOUGHT WERE THE FINAL NUMBERS FROM THE APPRAISAL DISTRICT, AND OUR VALUES WERE TIPPED OVER THAT $1.5 BILLION MARK.

AND WE HAD ANTICIPATED A 1.9% INCREASE OVERALL WITH 28, 28 MILLION OF THAT BEING IN THE FORM OF NEW CONSTRUCTION.

BUT AS WE BEGIN TO REALLY DIVE INTO THE CALCULATION OUR FINAL NUMBER ACTUALLY GOT ADJUSTED EVEN MORE.

SO OUR TOTAL PROPERTY VALUE LANDED AT $1,457,725,391 IT ENDED UP BEING A 2.5% DECREASE FROM WHERE WE WERE AT IN THE CURRENT YEAR OR FY 26.

WE HAD ANTICIPATED THAT $28 MILLION MARK IN NEW CONSTRUCTION, AND BECAUSE OF THE WAY THE TIRZ DISTRICT INTERACTS WITH THE CITY AND KIND OF DIVIDES A PORTION OF OUR TAXABLE VALUE, I THINK THAT'S THE REASON WHY YOU'RE GETTING THE BULK OF THAT DECREASE, BECAUSE OUR TIRZ DISTRICT HAD ABOUT 45 MILLION IN IT THIS YEAR.

SO I ALSO BELIEVE THAT'S WHERE SOME OF THE CHANGE IN NEW CONSTRUCTION CAME FROM, ALLOWING THAT NUMBER TO DIP DOWN A LITTLE BIT.

I'LL MAKE SENSE OF THAT MORE HERE IN JUST A MINUTE. SO I'VE TALKED A LOT ABOUT HOUSE BILL 9 AND THIS YEAR'S BUDGET.

REALLY THAT THAT HURT US QUITE A BIT. OVER 20 MILLION SHIFTED, IF YOU WILL, FROM FROM COMMERCIAL OVER TO RESIDENTIAL.

AND IT REALLY LOOKS LIKE A LOSS ON THE BOOKS.

I BELIEVE THAT WE'VE GOT SOME PROPERTIES THAT ARE CONTEMPLATED TO FALL COMPLETELY OFF THE TAX ROLL.

SO I TALKED TO A BUDGET COMMITTEE ABOUT THIS, AND I'VE SPOKEN WITH STAFF MEMBERS AND A COUPLE OF YOU, AS A MATTER OF FACT, ON THIS ITEM. AND THERE'S AN APARTMENT COMPLEX HERE IN TOWN THAT IS CURRENTLY IN THE PROCESS OF REMOVING THEMSELVES AND BECOMING TAX EXEMPT. THEY'RE IN THE PROCESS OF BECOMING TAX EXEMPT.

AND IF THAT HAPPENS, THAT WILL REMOVE 31 MILLION, ROUGHLY $31 MILLION OF VALUE FROM THE PROPERTY ROLLS.

IT WILL ALSO CAUSE THE CITY TO HAVE TO PAY BACK UPWARDS OF $26,000 IN PROPERTY TAX.

SO THAT I THINK IS WORTH NOTING HERE AS WE ARE ALREADY KIND OF POSTURING FOR FY 28, IF THAT HAPPENS BETWEEN NOW AND JULY OF 2027. THAT'S AN IMMEDIATE DROP FROM WHERE WE ARE NOW WITHOUT EVEN CRUNCHING ANY OTHER NEW CONSTRUCTION NUMBERS.

AND I'LL PAUSE RIGHT THERE. I WENT THROUGH THAT QUICKLY.

JUST WANT TO MAKE SURE IT WAS CLEAR IN WHAT I SAID. DOES ANYONE HAVE A QUESTION SPECIFICALLY ABOUT THAT SECOND BULLET? CAN YOU CLARIFY HOW MUCH MONEY CURRENTLY WE ARE GETTING FROM THAT APARTMENT COMPLEX?

[00:15:01]

OKAY. YEAH. GOOD. GOOD QUESTION. JAKE. I THINK THE PROPERTY HAS A VALUE OF SOMEWHERE AROUND $30 MILLION.

SO IF WE DID THE TAX MATH ON THAT WOULD BE AROUND $26,000 THAT THAT WE'VE PAID OR THEY'VE PAID IN.

HOPE THAT ANSWERS YOUR QUESTION, JAKE. SO AND THEN OF COURSE, I MENTIONED EARLIER, IF I GO BACK TO THE PREVIOUS SLIDE, YOUR YOUR TOTAL TAXABLE PROPERTY VALUES DID FALL FROM WHAT THEY ORIGINALLY FILED OUT AT.

AND SO I THINK THAT LEADS TO ITEM 3. THE TOTAL TAXABLE VALUE FELL FROM THE ORIGINAL CERTIFIED NUMBER.

BUT REMEMBER, I THINK THE TIRZ HAS SOMETHING TO DO WITH THAT.

AND THE WAY THAT IT GETS CALCULATED, BECAUSE WE PULL OUT ALL OF THE TIRZ AND IT'S CALCULATED SEPARATELY.

SO I THINK THAT'S WHY THAT FEELS LIKE THAT NUMBER DROPPED.

OUR BUDGET COMMITTEE, THIS IS PROBABLY ONE OF THE BIGGEST ITEMS. SO KUDOS. THIS IS A BOLD MOVE, BUT KUDOS TO THE BUDGET COMMITTEE FOR RECOMMENDING THE USE OF $750,000 IN IMPACT FEES TO OFFSET YOUR INS OR INTEREST IN SINKING DEBT TAX RATE. SO I WANT TO TAKE A FEW MOMENTS TO KIND OF WALK THROUGH THAT.

BUT BEFORE I GO ANY FURTHER, HOUSE BILL 9, I FEEL LIKE I'VE SAID THIS TOO MANY TIMES, THAT THE BASICS HERE ON HOUSE BILL 9 LEGISLATION OUT OF THE 89TH SESSION, IT ALLOWED FOR BUSINESS PERSONAL PROPERTY TO INCREASE THEIR EXEMPTION FROM $2500 TO $125,000.

SO THE MATH ON THAT BEHIND THE SCENES IS AROUND 21 MILLION OR SO DOLLARS.

THAT SHIFTED OFF OF OUR TAXABLE VALUE HERE IN THE CITY OF DECATUR.

SO IT'S A GOOD IT'S GOOD TO HAVE A HEALTHY BUSINESS COMMUNITY.

AND I'M GRATEFUL THAT THEY'RE GETTING EXEMPTIONS.

I JUST THIS IS ONE OF THOSE SCENARIOS WHERE WE TALK THROUGH UNINTENDED CONSEQUENCES.

I THINK THE UNINTENDED CONSEQUENCE HERE WAS THE MAJOR SHIFT IN VALUE DROPS BECAUSE OF THOSE BENEFITS.

SO IT'S A IT'S A BALANCING ACT. SO HERE WE ARE ON THE AGAIN, THE IDEA OF USING $750,000 OF OUR IMPACT FEES TO OFFSET OUR I&S DEBT TAX RATE. SO YOUR IMPACT FEE FUND TODAY RIGHT NOW HAS $2.3 MILLION IN IT.

AND THE $2.3 MILLION COMES FROM 3 SOURCES WATER, SEWER AND ROAD IMPACT FEE FUNDS.

SO YOU CAN SEE THERE YOUR WATER HAS 792. YOUR SEWER HAS 1.312.

AND YOUR ROADS, WHICH IF YOU'LL RECALL, THAT'S A BRAND NEW FEE.

WE HAVE NOT HISTORICALLY COLLECTED THAT UNTIL JUST A FEW SHORT WEEKS AGO.

IT HAS $254,000. SO LET'S MOVE THIS SCENARIO FORWARD.

IF WE WANT TO UTILIZE $750,000 OF IMPACT FEES TO OFFSET THAT DEBT.

THIS IS HOW WE WOULD RECOMMEND YOU DO IT. YOU TAKE 300 FROM WATER, 450 FROM SEWER.

AND JUST AS A GENERAL REMINDER, WE CANNOT USE ROADS IN THIS SCENARIO TO OFFSET ANY OF THAT DEBT BECAUSE THE DEBT THAT WE LEVIED IN OUR 2022 SERIES, OUR 2024 SERIES, AND OUR 2026 SERIES, ONLY HAS WATER AND SEWER PROJECTS THAT WOULD QUALIFY.

SO IF YOU DO THAT, YOU TAKE THAT OPTION, YOUR FUND BALANCE, THEN IN THE IN THE IMPACT FEE FUND COULD LOOK SOMEWHERE LIKE THIS 1.609 MILLION WITH THOSE REDUCTIONS FROM WATER AND SEWER. AND I WANT TO BE CLEAR HERE, THE LAST TIME WE WERE TOGETHER, WE WERE NOT REALLY IN FAVOR OF THAT. BUDGET COMMITTEE MET.

WE TALKED THROUGH IT AT LENGTH, AND WHILE WE WERE IN THOSE MEETINGS, WE HAD A PAIR OF DEVELOPMENTS MAKE PAYMENTS IN THE FORM OF IMPACT FEES FOR WATER AND SEWER. AND SO I THINK THAT WAS JUST KIND OF A SIGN THAT THAT WAS A GOOD IDEA.

AND THE BUDGET COMMITTEE SUPPORTED IT. SO HERE WE ARE. SO I'LL JUST PAUSE RIGHT THERE BEFORE I TALK THROUGH THIS SLIDE.

AND THIS SLIDE IS KIND OF A BIG PICTURE SLIDE.

ANY QUESTIONS ON THE USE OF IMPACT FEE FUNDS.

EXCELLENT. OKAY. ALL RIGHT. SO THIS IS YOUR HISTORICAL LOOK BACK ON YOUR TOTAL TAXABLE VALUE, YOUR TOTAL TAX COLLECTION, YOUR CHANGE IN VALUE, AND THEN YOUR YOUR TAX RATE OVERALL.

AND THEN THE TAX RATE IS BROKEN OUT BETWEEN M&O AND INTEREST AND SINKING.

SO IF YOU LOOK ALL THE WAY TO THE RIGHT, YOU SEE WHERE WE'RE SITTING JUST DOWN FROM WHERE WE WERE LAST YEAR ON OUR CERTIFIED TAXABLE VALUE, YOUR TAX COLLECTIONS TRENDING TO BE RIGHT AT 9.1 MILLION, JUST SHY OF 9.1 MILLION OVERALL.

THAT'S DEBT AND OPERATIONS. AND THEN YOUR TOTAL TAX RATE IS AT $0.62 AND SOME CHANGE. AND THAT'S MADE UP BY $0.42 IN YOUR M&O.

[00:20:01]

AND THROUGH THE CREATIVE USE OF THOSE IMPACT FEES, YOU'RE ABLE TO SHAVE ABOUT $0.05 OFF OF THAT TOTAL DEBT TAX.

AND SO REALLY, IT'S ONLY AN EFFECTIVE INCREASE OF $0.037896 ON THE DEBT.

SO IF YOU'LL RECALL, AND I APOLOGIZE, COUNCILMAN HOSKINS AND COUNCILWOMAN CROSS, YOU WEREN'T HERE WHEN THIS WAS DONE.

BUT LAST YEAR WE ISSUED DEBT FOR FIRE STATION PROJECT, WATER AND WASTEWATER PROJECTS.

AND WE TOLD YOU AT THE TIME THAT YOUR YOUR DEBT TAX INCREASE WOULD BE SOMEWHERE BETWEEN 4 PENNIES AND 6 PENNIES SOMEWHERE IN THAT NEIGHBORHOOD.

WE WERE, OF COURSE, HOPING FOR 100 HOMES TO BE PUT ON THE BOOKS AND SEVERAL BUSINESSES.

WE FELL SLIGHTLY SHORT ON THOSE PERFORMANCE METRICS.

AND THEN, OF COURSE, NO ONE PREDICTED THAT HOUSE BILL 9 WOULD IMPACT OUR VALUES LIKE THEY DID.

BUT HERE WE ARE BEING ABLE TO USE THE IMPACT FEES TO ALLOW THE DEVELOPMENT PROCESS TO HELP THE TAXPAYER.

YOU CAN SEE HERE THE IMPACT FEES ARE CARRYING THE BULK OF THE NEW TAXES THAT HAVE BEEN CREATED HERE THROUGH THE DEBT ISSUANCE PROCESS.

AND I'LL JUST PAUSE RIGHT THERE FOR ANY CLARIFYING QUESTIONS THAT YOU MAY HAVE.

ALL RIGHT. SO DATES ARE A BIG DEAL WITH THE BUDGET PROCESS.

AND HERE WE ARE ON OUR JOURNEY TO APPROVING A BUDGET TONIGHT.

WE WOULD HAVE CALLED FOR THE SECOND READING AFTER THE PUBLIC HEARING THAT'S TO COME.

WE WOULD HAVE CALLED FOR THE SECOND READING OF ORDINANCE TO ADOPT YOUR TAX RATE ORDINANCE TO ADOPT YOUR BUDGET.

BUT GIVEN THE MOVING PIECES WITH THE TAX RATE CALCULATION AND MAINTAINING CLARITY BETWEEN OUR OFFICE AND THE TAX OFFICE, HAVING THE OPPORTUNITY TO WORK THROUGH THE FORMS AND MAKE SURE THAT OUR NUMBERS ARE ACCURATE, WE'LL BE PUSHING THAT AUGUST 10TH APPROVAL DATE OUT TO AUGUST 24TH.

AND THEN ON ITEM 5, WE'LL TALK THROUGH YOUR FEELINGS ON THE NEED FOR A PUBLIC HEARING OR ADDITIONAL NEWSPAPER ARTICLES.

SO LET'S TALK ABOUT THE PROPERTY TAX RATE JUST SO WE'RE COMPARING APPLES TO APPLES HERE.

SO YOU SEE ON THE LEFT IS YOUR CURRENT FY 26 PROPERTY TAX RATE $0.056336.

WE'D ORIGINALLY COME TO YOU LAST COUNCIL MEETING AND PROPOSED THAT 0.676611 PROPERTY TAX RATE.

AND THEN HERE, AFTER CONFIRMING THE NUMBERS AND ALLOWING FOR THE $750,000 SCENARIO WITH IMPACT FEES TO COME INTO PLAY, THE FAR RIGHT IS YOUR ADJUSTED PROPERTY TAX RATE.

SO AT THE LAST COUNCIL MEETING, WE SAID THAT THE 0.676611 TAX RATE WOULD ULTIMATELY BE A WORST CASE SCENARIO FOR YOU.

AND HERE TONIGHT, WE'RE ESSENTIALLY LETTING YOU KNOW THAT THE BUDGET COMMITTEE SHAVED OFF JUST OVER FIVE AND A HALF CENTS FROM THAT RATE, MAINLY IN THE FORM OF DEBT. AND WE'RE PROPOSING A MUCH LOWER TAX RATE.

SO HERE'S WHAT THAT WOULD LOOK LIKE. IF YOU COMPARE 26 TO 27 IT'S ROUGHLY A RIGHT AT A 6 CENT INCREASE JUST A LITTLE SHY OF $0.06. WHAT WILL THAT $0.06 DO FOR YOU.

IT'LL KEEP US AT THE VOTER APPROVAL RATE. IT WILL GENERATE $370,000 IN ADDITIONAL REVENUES, $87,460 COMING FROM NEW CONSTRUCTION. AND IT'LL IT'LL RAISE THE PROPERTY TAXES PER $100,000 OF HOME VALUE, AROUND $52 PER 100,000.

SO THIS IS HOW IT WOULD IMPACT THE AVERAGE HOMEOWNERS.

AND I APOLOGIZE, MY FORMATTING IS A LITTLE OFF HERE.

BUT YOU SEE HERE I'VE REFLECTED 24, 25 AND 26 TOTAL TAX RATES, AVERAGE HOMESTEAD TAXABLE VALUE.

AND THEN THE ACTUAL TAX ON THE AVERAGE HOMESTEAD.

SO THAT'S COLUMNS 2, 3 AND 4 THERE FOR YOU. AND YOU SEE THE CHANGE THERE IN THE MIDDLE.

WE'RE PROPOSING A 0.054563 TAX RATE INCREASE, WAS JUST 8.8%, WHICH WOULD CHANGE THE THE TAXABLE HOME VALUE CHANGED BY $6,955.

THAT WAS A 2.25% INCREASE. AND JUST AS A REMINDER, THE CITY DOESN'T HAVE ANYTHING TO DO WITH VALUE OR WHAT YOUR PROPERTY IS VALUED AT THAT COMES FROM THE STATE LEVEL. THE TAX ON THE AVERAGE HOMESTEAD, BASED ON THAT $309,000 HOME IS AROUND

[00:25:05]

BEFORE THE CHANGE, IT WAS IT WAS AN INCREASE OF AN ANNUAL INCREASE OF $382.

HERE YOU'VE GOTTEN IT DOWN TO $208, AND IT WAS A MONTHLY CHANGE OF $32.

AND YOU HAVE IT DOWN TO 17. WHICH IS AN A OVERALL THAT'S AN EFFECTIVE TAX RATE INCREASE OF 6.86% WHEN YOU CAPTURE VALUE CHANGE PLUS THE TAX RATE CHANGE.

ANY QUESTIONS ON THE HOMEOWNER IMPACT. ALL RIGHT.

SO LET'S SWITCH OUR BRAINS FROM TAX RATE ON TO BUDGET.

SO OUR GENERAL FUND REVENUE IS $17,966,495. AND OUR EXPENSES 17,965,624. IF YOU'RE CRUNCHING THE NUMBERS, JEN HAS MANAGED TO BALANCE IT WITH AN $800 OF ITSELF.

IT'S AN INCREASE OF $200,805. AND THEN ON THE EXPENSE SIDE, $201,191.

VERY, LIKE I SAID IN THE BEGINNING, A VERY CONSERVATIVE ASK.

YEAR AND THE STAFF HAS DONE A GOOD JOB AT MAKING SOME CONCESSIONS HERE FOR US.

THE I THINK THE BIG DRIVERS HERE FOR OUR REVENUES ARE OBVIOUSLY THE PROPERTY TAX CHANGE, BUT REALLY THAT'S MARGINAL.

AND WHAT WE'RE PREDICTING FOR SALES TAX. REMEMBER, WE HIT THE PAUSE BUTTON AND ALLOWED FOR ZACH TAX TO COME IN AND STUDY OUR SALES TAX FOR US. AND THEY GAVE US A MEDIAN INCREASE OF AROUND 5.5%.

SO THAT'S WHAT WE'VE PROJECTED AN ADDITIONAL $630,000 IN SALES TAX.

AND ONE OF THE THINGS I WANT TO POINT OUT, AND COUNCIL MEMBERS THAT HAVE BEEN HERE A WHILE HAVE HEARD JEN AND I TALK ABOUT THIS YEAR OVER YEAR.

A LOT OF REVENUES THAT TREND OUT OF ORDER FROM WHERE WE PREDICTED THEM.

AND EVERY YEAR WE TRY TO CREATE A SCENARIO WHERE WE MAKE THE BUDGET BETTER THAN IT WAS THE YEAR BEFORE.

AND SO THE BUDGET COMMITTEE GOT TO SEE SOME OF THOSE AREAS WHERE BUDGETS NUMBERS WEREN'T TRENDING QUITE LIKE WE HAD HOPED FOR THEM TO.

FOR EXAMPLE, WE ANTICIPATED 100 HOMES BEING BUILT.

WE LANDED ON 84. SO THERE IS AN IMPACT TO THE FEES COLLECTED THROUGH THE DEVELOPMENT PROCESS.

SO THAT WAS ONE OF THOSE AREAS WHERE WE DIDN'T FEEL COMFORTABLE LEAVING THAT UP AT THE 100 MARK.

SO WE BROUGHT THAT DOWN. AND SO YOU SEE HERE, EVEN THOUGH WE'RE BRINGING ON NEW M AND O DOLLARS, OUR BUDGETS STILL FAIRLY NEUTRAL IN TERMS OF NOT A LOT OF ADS, NOT A LOT OF REDUCTIONS IN TERMS OF REVENUES VERSUS EXPENSES. I THINK THE BIG EXPENSE ITEMS HERE LAND WITH PUBLIC SAFETY.

AND IN ANY MUNICIPAL BUDGET, THE BULK OF YOUR GENERAL FUND OPERATING EXPENSE IS GENERATED TO COVER PUBLIC SAFETY, ABOUT 50% OR SO. AND THAT'S RIGHT ABOUT WHERE WE ARE.

WHAT WE'RE COVERING THIS YEAR IS 2 NEW FIREFIGHTERS FOR STATION 2 AND THE FUNDS THAT WILL TAKE TO CREATE PROMOTION POSITIONS DRIVERS, CAPTAINS, THAT SORT OF THING.

AND THEN AT THE POLICE DEPARTMENT, WE'RE COVERING THE ABSORPTION OF 2 OF THE SROS INTO NORMAL STAFFING AT THE POLICE DEPARTMENT.

AND WE'RE ALSO COMMITTED TO ADDING A DISPATCHER FOR THE PURPOSES OF HAVING MORE AVAILABLE STAFF AND DISPATCH 24/7 BOTH DEPARTMENTS GOT A BOOST IN THEIR OVERTIME LINES. BOTH DEPARTMENTS ARE TRENDING A LITTLE OVER OR RIGHT ON OVERTIME THIS YEAR, AND THAT'S JUST ONE OF THOSE NATURES OF THE BEAST THAT WE HAVE TO DEAL WITH.

THE OTHER BIG DRIVER OF OUR GENERAL FUND EXPENSES IS OUR HEALTH INSURANCE AND BUDGET COMMITTEE REALLY DUG INTO THIS WITH US.

WE'VE WE'VE CLEANED UP A LOT OF THINGS WITH OUR HEALTH INSURANCE, BUT THE BIGGEST THING WE COULD NOT CLEAN UP WAS THE POSTURE FOR 20% INCREASE.

AND THAT'S, THAT'S WHERE WE'RE AT RIGHT NOW IS A POSTURE 20% INCREASE.

WE'RE HOPEFUL THAT IT WILL COME IN MUCH LOWER THAN THAT.

AND IF IT DOES, THAT WOULD BE A GREAT THING FOR THE GENERAL FUND.

SO YOU GO BACK ONE NIGHT. YEP. SO THE FEES FOR POLICE.

DOES THIS FULFILL THE COMMITMENT TO WHAT THE CONSULTANT SAID WE NEEDED.

IT FULFILLS THE COMMITMENT BY KNOW IT'S RIGHT THREE THIS YEAR A DISPATCH AND 2 OPERATIONS.

[00:30:01]

OR FOUR MAYBE. I BELIEVE IT IS MAYOR. OKAY. THANK YOU.

IT'S A IT'S A CREATIVE WAY OF DOING IT. YOU KNOW, THERE ARE PARTNERS AT DISD WE'RE ESSENTIALLY ABSORBING 2 OFFICERS, 1 A DETECTIVE RANK AND ONE IS PATROL RANK. AND SO WE HAVE TO I THINK THE PLAN CALLED FOR OPERATIONS STAFFING FIRST, IF I REMEMBER CORRECTLY. IT'S IT'S NOT QUITE ACCORDING TO THE PLAN, BUT IT IS IN THE NATURE OF.

YES. IT FITS WELL. NATE. OBVIOUSLY BRYAN STEVENS IS WORKING ON THE BACKGROUND, BUT HOW SOON WILL HE BE ABLE TO FIGURE OUT WHAT INCREASED PRICING, IF IF WHAT PERCENTAGE OF INCREASE WE MAY OR MAY NOT HAVE? YEAH. JEN, OUR OPEN ENROLLMENT PERIOD IS NOVEMBER.

YEAH. THANK YOU. SO WE WON'T KNOW FOR SURE TILL NOVEMBER.

BUT WELL, I'M GLAD YOU ASKED THAT QUESTION BECAUSE ONE OF OUR CORRECTIVE ACTIONS HERE THE 4TH LINE DOWN REALIGNING THE OPEN ENROLLMENT PERIOD WITH FY 28. SO ONE OF THE THINGS THAT PLAGUES THE BUDGET ASSEMBLY PROCESS IS THE FACT THAT WE HAVE TO COME IN WITH THIS ASSUMED NUMBER, AND WE DON'T KNOW OUR ACTUAL NUMBER UNTIL YOU GUYS HAVE ALREADY APPROVED A TAX RATE, APPROVED A BUDGET, AND WE'RE 30 TO 60 DAYS IN MOTION WHEN WE GET THOSE HEALTH CARE NUMBERS.

SO OUR TEAM HAS WORKED WITH BRYAN, GREAT PARTNER FOR US.

HE'S GIVEN US A ROADMAP TO GET OUR FY 28 BUDGET IN LINE WITH OPEN ENROLLMENT.

SO WE'LL BE ABLE TO HAVE THAT OPEN ENROLLMENT SOMETIME AROUND MAY OR JUNE, I BELIEVE.

WORKING THROUGH THE ABILITY TO CARRY OVER ANY OF THE EXPENSES THAT WERE EXPERIENCED BETWEEN NOW AND THEN SO THAT THERE WILL BE HOPEFULLY NO IMPACT TO THE EMPLOYEE, BUT IT WILL ALLOW FOR US TO KNOW OUR REAL NUMBERS WHEN I'M TALKING TO YOU AT THIS TIME NEXT YEAR.

SO GREAT QUESTION. I HOPE I HELPED TO ANSWER THAT QUESTION.

YES, SIR. SO AGAIN, JUST KIND OF WHAT DID WE DO TO HOW DID WE BALANCE THIS THING? BECAUSE THE FIRST DOCUMENT THAT WAS PUBLISHED SHOWED US 1.4 MILLION OVER.

AND OF COURSE, THERE'S A LOT OF ASKS IN THAT.

THERE ARE A LOT OF UNKNOWNS WITH OUR REVENUES AT THAT POINT IN TIME. AND IF YOU'RE HEARING ME PRESENT THIS ON FACEBOOK OR YOU PICK THIS UP ON OUR WEBSITE LATER, THAT'S AVAILABLE FOR YOU TO DOWNLOAD OFF THE CITY WEBSITE IF YOU WANT TO SEE BEFORE ALL THE HARD WORK WENT IN WHAT THAT LOOKED LIKE.

BUT REALLY, WE DUG IN AND CLEANED UP DUPLICATED PROCESSES.

YOU KNOW, ONE OF THE THINGS WAS WE WERE WE'RE PAYING FOR 2 TELE DOC SERVICES.

IT'S KIND OF UNUSUAL. NOT REALLY NECESSARY. SO STAFF AND BUDGET COMMITTEE SUPPORTED REDUCING THAT DOWN TO 1.

SUPPORT OF REDUCING THE EXPENSES IN LONG AND SHORT TERM DISABILITY.

YOU MAY OR MAY NOT KNOW THIS, BUT THE CITY HAS HISTORICALLY PAID FOR ALL THE EXPENSES AROUND LONG AND SHORT TERM DISABILITY.

AND THIS YEAR THE SHIFT IS FOR THAT TO BE AN EMPLOYEE PURCHASED ITEM.

IF IT'S SOMETHING THAT YOU WANT, YOU CAN PICK THAT UP AT THE TIME OF OPEN ENROLLMENT.

ANOTHER ISSUE THAT WE'VE BEEN DEALING WITH FOR QUITE SOME TIME AND STAFF DUG IN ON THIS ONE PRETTY HARD.

WE'VE, WE'VE BEEN PAYING UPWARDS OF 3000 FOR FAMILIES TO HAVE THE HSA PLAN.

AND REALLY, WE SHOULD ONLY BE CONTRIBUTING TO THE EMPLOYEES PORTION OF THAT.

SO ONE OF THE PROBABLY ONE OF THE BIGGEST CHANGES, AND I APOLOGIZE TO THE EMPLOYEES THAT ARE HEARING THIS.

IF YOU FEEL LIKE IT'S A TAKE OF SORTS. WE CAN'T RISK NOT BEING PREPARED TO COVER YOUR PREMIUMS. BUT REDUCING THE HSA PROFILE TO ONLY PAYING FOR THE EMPLOYEES PIECE.

SO FOR EVERY EMPLOYEE, WE'RE BUDGETING $1,500 TO PUT INTO THEIR HSA.

PLUS, WE PAY A VERY LARGE AMOUNT OF THEIR INSURANCE COVERAGE.

SO WE FELT LIKE THAT WAS FAIR. AND IT PUT US IN A POSTURE TO ABSORB WHATEVER INCREASES COME OUR WAY AT THE TIME OF OPEN ENROLLMENT.

THAT SAVINGS, THOSE 2 ITEMS, LONG AND SHORT TERM DISABILITY.

AND THE CHANGE WITH HSA JUST SHY OF $150,000 SAVINGS FOR THE CITY.

AND THAT WILL GO A LONG WAY WHEN WE'RE GRAPPLING WITH THOSE INCREASES.

I MENTIONED ALREADY REALIGNING THE OPEN ENROLLMENT PERIOD, I THINK THAT'S GOING TO BE A HUGE, HUGE ITEM THERE. AND THEN I JUST WANT TO AGAIN BRAG ON THE DEPARTMENT'S FLEXIBILITY.

A NUMBER OF TIMES WE CALLED DEPARTMENT HEADS AND ASKED THEM, HEY, HERE'S A SCENARIO.

CAN YOU HELP US OUT WITH THAT? AND THE ONE THAT IS PROBABLY THE EASIEST TO POINT OUT, THE FIRE DEPARTMENT IS ASKING FOR 2 FULL TIME EMPLOYEES FOR THEIR NEW STATION.

CALL IT THE CHIEF AND SAID, HEY, CAN YOU HIRE THOSE FOLKS IN JANUARY WHEN WE ACTUALLY GET THE STATION ONLINE? HE SAID, SURE, NO PROBLEM. WE HAD A SUBSEQUENT CALL TO HIM AFTER BUDGET COMMITTEE AND SAID, HEY, CAN YOU ALSO DO THE SAME? TAKE THE SAME APPROACH WITH YOUR OVERTIME ASKS AND YOUR PART TIME ASKS, AND SHAVE OFF A QUARTER OF THOSE EXPENSES AS WELL? AND HE STEPPED AWAY. BUT HE GRACIOUSLY, GRACIOUSLY AGREED TO DO THAT WITH THE THE CAVEAT THAT IF HE WENT OVER BUDGET, HE SAID, I TOLD YOU SO, AND WE'LL DEAL WITH THAT, CHIEF.

[00:35:03]

YOU KNOW IF YOU WERE TO LOOK AT OUR, AT OUR FEE PROFILE ACROSS ALL THE DEPARTMENTS, YOU WOULD SEE THAT SOME OF THEM BREAK EVEN, SOME OF THEM DO NOT BREAK EVEN WHEN IT COMES TO USING CREDIT CARDS.

AND REALLY THAT'S A CONVENIENCE FEE. SO WE'RE REEVALUATING THE USE OF CREDIT CARDS AND CHANGING THE FEE FROM 3% TO 3 OR POSSIBLY MORE. AND THAT WILL BE SOMETHING THAT YOU'LL GRAPPLE WITH AFTER THIS BUDGET IS OVER.

SO JUST ANY ANY QUESTIONS THERE ON HOW WE BALANCED.

I WOULD ASK THE BUDGET COMMITTEE IF, IF ANY OF THOSE THINGS YOU WOULD HAVE SAID DIFFERENTLY OR MAYBE SOMETHING THAT WAS REMARKABLE THAT YOU GUYS DEALT WITH THAT I MISSED TONIGHT. AGAIN, VERY GRATEFUL FOR. SO HERE'S YOUR HERE'S YOUR REVENUE SNAPSHOT.

SO YOU CAN SEE HERE THE BULK OF YOUR ITEMS COME FROM THE GENERAL FUND, WHICH IS KIND OF RIGHT THERE IN THE MIDDLE 14.4 MILLION THERE.

AND YOU SEE THE, THE 1.68% INCREASE THAT IS LARGELY IN DUE TO THE CHANGE IN PROPERTY TAX.

AND JUST AS A REMINDER, THERE WERE SOME REVENUES THAT WENT DOWN AND SOME THAT WENT UP, BUT OVERALL, WE INCREASED THE REVENUES BY ONLY $200,805. AND THE GENERAL FUND PORTION OF OUR REVENUE COLLECTION REPRESENTS ABOUT 81% OF THOSE REVENUES. SO THIS IS IN CONTRAST TO THAT.

THIS IS YOUR EXPENSES. AND AGAIN, I APOLOGIZE.

THE FORMATTING WAS NOT IN MY FAVOR TONIGHT. BUT WHAT YOU'RE SEEING HERE IS APPROVED FY 26 BUDGET.

AND THEN THE PERCENTAGE OF THE BUDGET THAT THAT DEPARTMENT HELD IN FY 26, AND THEN THE PROPOSED FY 27 BUDGET AND THE PERCENTAGE OF THE BUDGET THAT THAT DEPARTMENT HOLDS IN THE PROPOSAL FOR FY 27. AND, YOU KNOW, ONE OF THE THINGS THAT I LIKE DOING HERE IS I SAID EARLIER, YOU WANT YOUR PUBLIC SAFETY FOLKS TO OCCUPY THE TOP HALF OF OF THAT.

AND YOU CAN SEE THEIR POLICE AND FIRE COMING IN AT 31 AND 19%, RESPECTIVELY.

SO I THINK I DO BELIEVE GIVEN ALL THE MOVING PIECES, THIS IS A VERY GOOD BUDGET FOR US THIS YEAR.

IT SHOULD SERVE THE GENERAL FUND VERY WELL. AS FAR AS THAT SUMMARY SNAPSHOT, JUST KIND OF BRINGING IN THE REVENUES AND EXPENSES TOGETHER.

SO LET'S SWITCH OUR BRAINS OVER TO THE WATER FUND.

I THINK THE BIG THING HERE ON THE WATER FUND IS WE'RE REALLY JUST ABSORBING THE BOND PAYMENTS FOR FY, EXCUSE ME FOR CO 2026 GRAPPLING WITH SOME CHEMICAL COSTS AND THROUGH THE REPAIR AND MAINTENANCE PROCESS, TRYING TO DECREASE OUR REPAIR AND MAINTENANCE PROFILE.

JUST AS A REMINDER THAT STUFF'S OLD. SO THE NEW PROJECTS CAN'T COME ONLINE FAST ENOUGH.

I'VE HIGHLIGHTED THE RATE STUDY THERE. I THINK THAT'S PROBABLY THE MOST IMPACTFUL ISSUE HERE FOR US TO TALK THROUGH.

SO I'LL PUT UP THE RATE STUDY. YOU'LL REMEMBER 2 YEARS AGO, WE STARTED THIS CONVERSATION ON WATER WASTEWATER RATES.

AND WE SAID BACK THEN THAT THOSE RATES 1 WERE, WERE LOW, HADN'T BEEN ADJUSTED IN QUITE SOME TIME.

AND THEN OF COURSE, WE HAD NEW PROJECTS COMING ON THE CAPITAL PLAN THAT CAME TO US FROM THE CAPITAL IMPROVEMENTS ADVISORY COMMITTEE, WHICH PRIMARILY DEALS WITH IMPACT FEES. BUT IN THIS CASE SCENARIO, THEY SAW SOME OF THE SAME PROJECTS THAT WE WILL NEED TO EXPAND OUR WATER WASTEWATER PROFILE ACROSS THE CITY. SO ONE OF THE THINGS THAT SHOULD HAPPEN WITH ANY CAPITAL PROJECT IS THE FUNDING SOURCES TO REPAY THE BONDS DON'T NEED TO SOLELY RELY ON THE PROPERTY TAX.

IN OUR CASE, WE'RE RELYING ON PROPERTY TAX FOR A SMALL AMOUNT.

WE'RE RELYING ON IMPACT FEES FOR A SMALL AMOUNT, BUT THE BUT THE BULK AND REMAINDER COME FROM OUR WATER RATES.

AND SO WHAT YOU'RE SEEING HERE IS SEWER AND WATER BASE CHARGES AND THEN VOLUMETRIC CHARGES.

SO LET'S FOCUS ON SEWER FIRST, WHICH IS THE SMALL BOX ON THE LEFT.

FY 2026 SEWER BASE CHARGE WAS $29.06. FY 27 BASE CHARGE WILL BE $31.79. SO IF YOU IF YOU DON'T USE YOUR FACILITIES AT ALL, THAT'S THE BASE CHARGE ON YOUR SEWER BILL.

MOST OF OUR COMMUNITY LANDS IN THAT, I GUESS, WOULD BE THAT 2000 TO 20 000 RANGE.

SO PER 2000 TO 20 000 VOLUMETRIC USE, YOU'RE PAYING ABOUT $5.16 FOR THAT IN ADDITION TO YOUR BASE RATE.

AND THAT WOULD GO UP TO $5.50. SO IS THAT SO ON THE 20 PLUS GALLONS IS IT FROM 20 GALLONS 20,000 ABOVE

[00:40:05]

ONCE YOU GET TO 20 FOR EVERY 20. AND I'LL RELY ON JEN TO CORRECT ME HERE.

BUT ONCE YOU GET TO 20, EVERY 20 YOU USE IS AN ADDITIONAL $7.08.

OKAY. 6000. AT THAT RATE. SO KIND OF LIKE INCOME TAX.

OKAY. GOOD CLARIFYING QUESTION. KEEP IT BELOW 20,000, SIR.

SO THEN THE SAME LOGIC APPLIES TO THE WATER, YOUR WATER BASED RATES.

AND WE DON'T HAVE VERY MANY OF THE 4 INCH AND LARGER CATEGORIES.

SO MOST OF YOUR RESIDENTIAL COMMERCIAL ARE GOING TO BE UP IN THE 1IN TO 3 INCH RANGE.

SO RIGHT NOW, IF YOU HAVE A THREE QUARTER INCH METER, YOUR BASE.

BASE CHARGE IS $27.18. YOUR BASE CHARGE WILL GO UP $29.14.

AND THEN YOUR VOLUMETRIC IS REFLECTED DOWN THERE AT THE BOTTOM, DEPENDING ON HOW GREEN YOUR GRASS IS MAYOR.

YOU MIGHT EXPERIENCE A FEW MORE PENNIES THAN OTHERS, BUT I WOULD SAY A LOT OF RESIDENTS ARE IN THAT 8000 TO 20,000 RANGE.

SO IF YOU USE MORE THAN 8000 1 GALLONS, BUT LESS THAN 20, YOU'LL FALL IN THE VOLUMETRIC RANGE OF ABOUT $6.03, WHICH IS UP FROM $5.88. IT WAS HARD FOR US TO GIVE YOU JUST A, HEY, WE'RE GOING TO INCREASE WATER RATES BY AROUND 3% BECAUSE THERE'S SO MANY VARIABLES HERE THAT IMPACT THAT. BUT THIS IS STRAIGHT FROM THE PLAN THAT WAS PROPOSED BY NGUYEN LAST YEAR.

WE TOOK THE FIRST STEP LAST YEAR. AND SO THAT'S HELPING IN FUND TWO TO OFFSET THAT DEBT PAYMENT.

QUESTIONS ON RESIDENTIAL. THIS IS NOT ACTION.

WE'LL HAVE. IF YOU APPROVE YOUR BUDGET ON THE 24TH, WE'LL COME BACK TO YOU WITH A FEE CHANGE THAT WILL CAPTURE THAT BASED ON THE PROPOSAL AND THE BUDGET PROCESS. SO THEN THE SAME LOGIC WOULD APPLY FOR OUR COMMERCIAL CLIENTS.

AND WE'LL JUST QUICKLY COVER SEWER FOR. SO FOR EXAMPLE, YOUR SEWER BASE CHARGE $40.27, GOING UP TO $44.05.

AND THEN YOUR VOLUMETRIC BELOW THAT. AND THEN THE SAME ON COMMERCIAL CLIENTS.

JUST LOOK AT THE, FOR EXAMPLE, THE 3 QUARTER INCH COMMERCIAL $33.50 FOR THE BASE CHARGE ON WATER GOING UP TO $35.92.

AND THEN YOUR VOLUMETRIC IS APPLIED AT THE BOTTOM THERE IN THE SAME MANNER AS RESIDENTIAL.

ALL RIGHT. THE FINAL PIECE OF MUNICIPAL BUDGET, ASIDE FROM JUST KIND OF HOW IT LOOKS ALL TIED TOGETHER, YOUR DEBT SERVICE OBLIGATIONS. SO DEBT SERVICE FUNDS $3.6 MILLION IN DEBT.

THAT'S AN INCREASE OF 1.2 MILLION. THAT'S COMING FROM YOUR FIRE STATION PROJECT, YOUR NEW SERIES OF WATER WASTEWATER ITEMS IN 2026.

SO YOUR OVERALL INCREASE THERE IS 1.2 MILLION.

AND JUST AS A REMINDER, THIS IS OFFSET BY YOUR ABILITY TO USE YOUR IMPACT FEES TO OFFSET THAT.

SO HERE'S WHAT YOUR BUDGET LOOKS LIKE ALTOGETHER.

AND THE ONLY THING THAT'S MISSING HERE WOULD BE FUNDS THAT ARE COVERED BY ANOTHER DEPARTMENT SUCH AS EDC.

MATT AND LEE ARE WITH US HERE TONIGHT, BUT THE EDC HAS PASSED THEIR BUDGET.

WHEN YOU SEE YOUR PACKET ON THE 24TH, THE EDC BUDGET WILL BE INSIDE OF THE REST OF THE MUNICIPAL BUDGET FOR YOU TO APPROVE AS A COMPONENT OF THE EDC, THE MUNICIPAL BUDGET. SAME WITH THE WATER DISTRICT.

THAT'S FUND 12. IT'LL BE IN THERE AS WELL. SO SAME BASIC PROFILE FOR THE WATER DISTRICT.

THEIR DISTRICT WILL APPROVE THEIR BUDGET AND THEIR TAX RATE, AND IT WILL LAND INSIDE OF OUR PACKET FOR YOUR APPROVAL ON THE 24TH.

AND JUST A REMINDER HERE, WE WILL FINISH UP THE BUDGET PROCESS AUGUST 24TH HERE IN A MOMENT, MAYOR YOU'LL HAVE THE OPPORTUNITY TO CALL FOR PUBLIC HEARING.

ANYONE IN THE AUDIENCE OR ANYONE THAT'S JOINED US ONLINE WILL HAVE THE OPPORTUNITY TO SPEAK THEIR HEART ON OUR BUDGET AND TAX RATE.

AND THEN THIS FINAL SLIDE HERE IS JUST A REMINDER THAT IF SOMETHING DRASTIC CHANGES BETWEEN NOW AND AUGUST 24TH, WE DO HAVE TO HAVE A BUDGET PASSED BY YOUR FIRST MEETING.

NOEL, NO LATER THAN SEPTEMBER 14TH. BUT FOR SURE BY YOUR FIRST MEETING IN SEPTEMBER, I BELIEVE THAT GETS ME TO MY FINAL SLIDE, AND I'M HAPPY TO GO BACK OVER ANY OF THOSE DETAILS, ANSWER QUESTIONS, ANYTHING.

SO AT 6:44, WE'LL OPEN A PUBLIC HEARING. IF ANYBODY HAS ANY QUESTIONS OR IF ANYBODY ONLINE THAT HAS ANY QUESTIONS.

[00:45:03]

RHONDA, YOU CAN GO BACK TO THE AGENDA IF YOU DON'T MIND. PLEASE, SIR. AND IF IF THERE IS ANYONE WHO MISSED THE OPPORTUNITY TO GIVE THEIR OPINION, I'M MORE THAN HAPPY TO VISIT WITH THEM HERE AT CITY HALL. IF THEY WANT TO MAKE SOME TIME TO COME UP, WE CAN TALK THROUGH THAT. JUST A REMINDER, THE BUDGET AND TAX PROFILE ARE ALSO ON OUR WEBSITE.

JUST A REMINDER THERE THAT IT'S A FILED VERSION THAT WENT TO SUSIE BEFORE ALL THE HARD WORK WENT INTO IT.

SO THE CLEAN VERSION WILL COME OUT YOUR AUGUST 24TH PACKET.

AWESOME. I'D JUST LIKE TO SAY THANK YOU TO ALL THE STAFF, EVERYBODY THAT WAS INVOLVED IN THIS.

AND ALSO THE BUDGET COMMITTEE FOR PUTTING ALL YOUR HARD WORK IN AND, YOU KNOW, GETTING THIS TO A NUMBER THAT I FEEL LIKE WE CAN ALL BE HAPPY WITH THIS YEAR. THANK YOU AGAIN.

ITEM NUMBER 5. CONSIDER, DISCUSS AND CONSIDER, SCHEDULE A SECOND PUBLIC HEARING AND ISSUE ADDITIONAL NOTES OR NOTICES ON THE BUDGET AND TAX RATE. FISCAL YEAR 2026-2027. MAYOR. SO WE PUT THIS ITEM ON HERE.

IN THE EVENT THAT COUNCIL FELT IT WOULD BE NECESSARY TO SCHEDULE AN ADDITIONAL PUBLIC HEARING, OR IF YOU FELT IT NECESSARY TO POST ADDITIONAL NOTICES IN THE PAPER.

SO BEFORE YOU MAKE A MOTION OR DISCUSS IT, JUST A COUPLE OF THINGS FROM MY PERSPECTIVE.

YOU GUYS PROPOSED THAT TAX RATE THAT WAS MUCH HIGHER THAN WHAT WE'RE ACTUALLY GOING TO GRAPPLE WITH ON THE 24TH OF AUGUST.

I THINK IN TERMS OF THE LAW FOR CREATING A BUDGET AND TAX RATE, WE'RE WELL WITHIN THE PARAMETERS AND THE GUIDANCE SET FORTH BY THE COMPTROLLER'S OFFICE.

YOU DO NOT HAVE TO HAVE AN ADDITIONAL PUBLIC HEARING.

FOLKS COULD SPEAK ON AN AGENDA ITEM USING THEIR 3 MINUTES OF TIME AT ANY COUNCIL MEETING.

THE ONLY THING THAT I KIND OF GRAPPLE WITH IS WITH THE COUNCIL, LIKE FOR US TO PUBLISH AGAIN IN THE NEWSPAPER, AN UPDATED SET OF TAX RATE NUMBERS FOR THE COMMUNITY TO SEE BETWEEN NOW AND WHEN YOU MEET ON THE 24TH. WE'RE HAPPY TO DO THAT. VERY MINIMAL COST.

SO I'LL STAND BY FOR QUESTIONS. WELL, JUST FOR DISCUSSION, NOT TO SAY WE SHOULD OR SHOULDN'T I DO DO LIKE THE IDEA OF COMMUNICATING THAT OUT TO THE PUBLIC BECAUSE IT IS A LOWER RATE.

I FEEL LIKE THAT WOULD BE A GOOD THING TO COMMUNICATE FOR THOSE THAT DON'T HAVE THE OPPORTUNITY TO BE ONLINE OR LISTEN TO THIS COUNCIL MEETING OR BE PRESENT. SO THAT THAT WOULD BE MY THOUGHT IS TO MAYBE GO AHEAD AND DO THAT.

ANYBODY ELSE HAVE ANYTHING? I COULDN'T AGREE MORE THAT WAY.

IT'S OUT THERE FOR EVERYBODY TO TO SEE WHERE WE'RE AT AND THE HARD WORK THAT Y'ALL PUT IN AND WHAT WE'VE BEEN ABLE TO DO.

OKAY. SO YEAH. DO YOU NEED A MOTION FOR THAT OR IS IT JUST, I DON'T THINK I NEED A MOTION.

I CAN OPERATE ON FEEDBACK. WHAT WE'LL DO THEN IS IF YOU'RE FAMILIAR WITH THE.

IT'S CALLED THE NOTICE OF TAX RATE INCREASE. IT'S THE LONG VERSION THAT SHOWS THE VOTER APPROVAL RATE, THE DE MINIMIS RATE. AND THEN IT GOES ON TO DISCUSS THE IMPLICATIONS OF THAT TAX RATE.

WE'LL REPUBLISH THAT WITH THE UPDATED NUMBERS THAT WE'VE PRESENTED HERE TO YOU TONIGHT.

AND WE'LL LEAVE OUT THE LANGUAGE ON IT THAT SPEAKS TO AN ADDITIONAL PUBLIC HEARING, BECAUSE TECHNICALLY THAT'S NOT NECESSARY.

AND THEN IF ANYTHING IN THE FORM OF FEEDBACK COMES YOUR WAY, JUST CONNECT THEM WITH STAFF AND WE'LL BE HAPPY TO HELP.

AWESOME. ALL RIGHT. ITEM NUMBER 6 IS THE CONSENT AGENDA.

[IV. CONSENT AGENDA ITEMS ]

ANYBODY HAVE ANY QUESTIONS? I'D LIKE TO MAKE A MOTION TO APPROVE THE CONSENT AGENDA.

SECOND. I'VE GOT A FIRST BY MIKE AND A SECOND BY JAKE.

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

THE AYES CARRY. THEN WE ALSO HAVE AN EXECUTIVE SESSION TONIGHT IN ACCORDANCE WITH CHAPTER 551 OF THE TEXAS GOVERNMENT CODE.

[V. EXECUTIVE SESSION]

551.071 CONSULT WITH ATTORNEY TO SEEK ADVICE THE CITY ATTORNEY REGARDING PENDING OR LITIGATION OF A SETTLEMENT OFFER. IT IS 6:49.

ALL RIGHT. WE'RE BACK IN SESSION AT 7:19. ITEM NUMBER 7 IN ACCORDANCE TO CHAPTER 551, THE TEXAS

[VI. RECONVENE INTO OPEN SESSION]

[00:50:08]

[8. COUNCIL MEMBER REQUESTS FOR FUTURE AGENDA ITEMS.]