Aug 10, 2026 Special City Council

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ALL RIGHT. GOOD EVENING.

[2.A. Presentation of the Fiscal Year 2027 (FY2027) Proposed Budget. ]

PRESENTATION IS KRISTOV BOWER. >> IT'S MY HONOR TO PRESENT THE PROPOSED BUDGET. I WILL CLARIFY THE PROCESS AND HOW YOU MOVE FORWARD AND THIS OF COURSE IS A CULMINATION OF A LOT OF WORK FOR THE PEOPLE BEHIND ME ASK YOUR WORK IN ASSISTANCE OF PUTTING THIS TOGETHER. I APPRECIATE THEM AND ■THAT'S WHERE WE START. OF COURSE.

YOU ARE OUR LEADERSHIP TEAM AND A LOT OF THIS REFLECTS THE DIRECTION THAT YOU HAVE GIVEN US.

NOW AS WE MOVE FORWARD TONIGHT, I HAVE ASKED YOU NOT TO ASK QUESTIONS ABOUT THE PROPOSED BUDGET AND THAT IS SIMPLY HONORING THE STATE LAW WHICH SAYS WE HAVE TO PROVIDE THE BUDGET BEFORE WE DISCUSS IT. WE'RE PROVIDING TONIGHT.

AND THEN WE WILL HAVE A DISCUSSION ON IT ON THE 17TH WHERE WE WILL HAVE A PUBLIC OPPORTUNITY FOR YOU TO ASK ANYMORE QUESTIONS YOU HAVE ABOUT THE BUDGET OR MAKE SUGGESTIONS FOR ADDITIONAL CONSIDERATION. WE DO HAVE TWO ITEMS WE'RE ASKING FOR YOUR ACTION ON TONIGHT.

ONE IS THE RATE SCHEDULE. ANOTHER ONE IS THE NOTIFICATION REGARDING OUR POTENTIAL TAX RATE THAT WE ARE PROPOSING.

SO THOSE ARE THINGS CERTAINLY ARE ON HERE FOR ACTION.

SO CAN BE DISCUSSED AND ANY QUESTIONS YOU HAVE, WE HAVE EXPERTS IN THE ROOM TO ASSIST WITH PROVIDING INFORMATION REGARDING OUR WATER AND SEWER RATES.

THESE ARE THE THINGS WE WORKED ON TRYING TO ACCOMPLISH WITH YOU THIS YEAR. FOCUSING ON OUR ECONOMIC STRUCTURE, EMPLOYEE RETENTION IS A BIG THEME IN THE BUDGET.

WE WILL TALK ABOUT THE INVESTMENTS WE MADE IN THAT AREA AND KEEPING UP WITH THE CAPITAL NEEDS OF OUR CITY AND OUR UTILITY RATES. SO AS I MENTIONED, THIS IS THE FIRST SORT OF PUBLIC PROCESS, OF COURSE WE HAD A NUMBER OF PUBLIC MEETINGS BEFORE THIS AS PART OF THE CREATION OF THE BUDGET.

BUT, REVIEWING THE FORMAL PROPOSED BUDGET, THIS IS THE FIRST STEP OF THAT TONIGHT. YOU WILL SEE IT AGAIN ON THE 17TH. WE WILL HAVE AN OPPORTUNITY TO DISCUSS IT AND IF COUNCIL NEEDS MORE TIME, WE CERTAINLY CAN ESTABLISH ADDITIONAL MEETING OR SPECIAL MEETINGS FOR ADDITIONAL DISCUSSION. ON SEPTEMBER 15TH, WE WILL HAVE A PUBLIC HEARING ON BOTH THE TAX RATE AND PROPOSED BUDGET AND CONSISTENT WITH STATE LAW, WE HAVE A MOTION TO DELAY THE ACTION TO OCCUR ON THE 16TH. SO THAT'S A TWO-STEP PROCESS WHICH THE COUNCILMEMBERS WHO HAVE BEEN ON THE COUNCIL RECOGNIZE THAT FROM PREVIOUS YEARS AND IT'S JUST A WAY FOR US TO COMPLY WITH THE CHALLENGING PROCESS THAT THE STATE LEGISLATURE HAS PROVIDED FOR US. SO THE PROPOSED TAX RATE, WE HAVE TWO COMPONENTS. M AND O AND SINKING FUND.

ONE PAYS FOR MAINTENANCE AND OPERATIONS AND THE OTHER PAYS OUR DEBT. 807 IS CLOSE TO IF NOT THE SAME IT WAS IN THE PREVIOUS YEAR. YOU CAN SEE OR RATE OVER TIME.

THE M&O RATE IS ACTUALLY LESS THAN IT WAS BACK IN 2017.

SO THE M & O RATE IS CAPPED BY STATE LAW.

NOW THE INS RATE IS ACTUALLY VERY A LITTLE HIGHER AND THAT IS PRINCIPALLY BECAUSE OF THE BOND ISSUES RAISED IN 2023 AND THE DEBT ISSUED IN 24-25 IS ANTICIPATED FOR 26.

THE REAL CHALLENGE WE HAVE WITH OUR TAX RATE AND THE GENERAL FUND IS OUR SALES TAX. IF YOU LOOK AT OUR COMPARISON FOR WHERE WE GET OUR REVENUES AS FAR AS SALES TAX, WE ARE CHALLENGED IN COMPARISON TO OUR NEIGHBORS.

AS FAR AS HOW MUCH SALES TAX WE GENERATE IN OUR ECONOMY.

THAT PLACES A BURDEN ON OUR PROPERTY TAX.

SO MAJOR INVESTMENTS THIS YEAR. MOST SIGNIFICANT OF WHICH I FORECAST EARLIER IS IN OUR EMPLOYEES.

WE DID A GENERAL GOVERNMENT SALARY, WE ACTUALLY DO THAT EVERY YEAR. THIS YEAR WE FOCUSED ON REVISING THAT STRUCTURE. THAT COST FOR US PLUS ADDITIONAL COMPENSATION CHANGES WITH OUR PUBLIC SAFETY EMPLOYEES, THE FUNDING OF THEIR STEP PLANS WHICH HAVE BEEN APPROVED IN THE PAST AND ADDITIONAL ADJUSTMENTS HAVE COST US APPROACHING A BIT OVER $3 MILLION OF INVESTMENT THIS YEAR.

WE DO HAVE ADDITIONAL POSITIONS IN THE PROPOSED BUDGET, THOSE RESPOND TO ADDITIONAL DEMANDS FOR SERVICE INCLUDING OUR RECORDS CLERK TO DEAL WITH INCREASE IN OUR PUBLIC INFORMATION REQUESTS, PARK AND RECREATION ASSISTANT DIRECTOR,

[00:05:05]

WE BROUGHT PARKS MAINTENANCE BACK UNDER THE PROGRAM AND BELIEVE THIS IS A REASONABLE INVESTMENT IN RESOURCES TO MAKE THAT FUNCTION MORE EFFECTIVE. WE'RE ALSO LOOKING AT THREE PART TIME RECREATION LEADERS. WE HAVE SEEN PICK UP IN THE USES OF OUR RECREATION AND RCC. THIS IS ABOUT CUSTOMER SERVICE AND MAKING SURE WE HAVE STAFF AS THEY COME IN TO OUR PREMIERE RECREATION BUILDING. KENNEL TECH TO HELP THE ANIMAL SHELTER AND HAVE THE ABILITY TO RESPOND.

WE ARE LOOKING AT TAKING QUARTER MASTER, WHICH WAS A HALF-TIME POSITION FOR OUR POLICE DEPARTMENT WHICH KEEPS TRACK OF THEIR EQUIPMENT AND TAKING THAT TO A FULL TIME POSITION.

ONE OF THE BIGGER ISSUES THAT WAS RAISED AS A CONCERN WHEN WE DID THE STAFF SURVEY FOR A POLICE DEPARTMENT WAS IN THE AVAILABILITY. OF THEIR EQUIPMENT.

WANT TO MAKE SURE THAT'S SAFE AND EFFECTIVE AND THE QUARTER MASTER HELPS US DO THAT. THE GIS INTERN IS ABOUT TRAINING AND OF OUR FUTURE STAFF TO DO TECHNICAL WORK FOR US AND STAY AHEAD OF ADDRESSING ISSUES. WE HAVE UTILITY COORDINATOR POSITION AS WE RE-ORGANIZE THAT STAFF AND TACKLE THINGS LIKE INI TEAM. AND TALK ABOUT MORE OUR INFILTRATION ISSUES. ON THE DRAINAGE FUNCTION HAS BEEN UNDER FUNDED IN THE PAST. AND WE HAD THE RESOURCES OF THE DRAINAGE FUND OUTSIDE OF THE GENERAL FUND TO COVER ADDITIONAL PERSONNEL AND STAFF TO ADDRESS SERVICE WATER ISSUES.

THE FLOODING THAT WE SEE WHEN WE HAVE HEAVY RAINS IN THE COMMUNITY. THIS IS FOCUSED ON IMPROVING OUR OPERATIONS TO MAKE THAT MORE EFFECTIVE.

WE HAVE FUNDING FOR OUR BOARDS AND COMMISSIONS.

AND SOME ADDITIONAL INVESTMENTS IN TECHNOLOGY.

AND THEN WE'RE DOING A PARTIAL FUNDING OF A RECRUITER, WE ADDED A RECRUITER HALFWAY THROUGH THE YEAR TO HAVE THE TEAM IN PLACE TO PROVIDE ADEQUATE SERVICE TO OUR COMMUNITY AND WE HAVE A ONE-TIME INVESTMENT FOR OUR FOUNDERS DAY CELEBRATION FOR NEXT YEAR. SO THOSE ARE MAJOR INITIATIVES POSING IN THE BUDGET IN FRONT OF YOU.

LOOKING SPECIFICALLY AT THE GENERAL FUND.

HERE'S OUR MAJOR REVENUES. OF COURSE, WE HAVE THE OPERATING REVENUES AS PREDOMINATELY REVENUE TAX AND CHARGES TO OTHER FUNDS TO COVER OUR INTERNAL SERVICE OPERATIONS.

AND THEN WE HAVE PROPOSED EXPENSES.

AND TRANSFERS OUT FOR CAPITAL AND THEN WE GET DOWN TO A NET CHANGE. IT LOOKS NEGATIVE HERE.

THE REASON IT LOOKS NEGATIVE IS THE BASELINE DIRECTION OF THE COUNCIL. WE ARE REBUILDING THE ECONOMIC DEVELOPMENT FUND BY A ONE-TIME TRANSFER AND THAT ONE-TIME TRANSFER IS INTO TO A SPECIFIC FUND TO REDUCE THE FUND BALANCE AT THE END OF THE YEAR. NET OUR ACTUAL CONTRIBUTION TO THE GENERAL FUND NET OF THAT CHANGE WOULD BE OVER $600,000 THIS YEAR. SO A LITTLE MORE SPECIFIC LOOK AT THE GENERAL FUND. PROPERTY TAXES HERE.

ALL THE DIFFERENT REVENUES GOING DOWN THE LIST.

YOU CAN SEE WE HAVE SALES TAX ABOUT $10 MILLION.

OUR ESTIMATION IS THAT'S GOING TO STAY FLAT, WHICH IS CONSISTENT PRETTY MUCH WHAT WE HAVE SEEN THIS YEAR.

DON'T SEE A LOT OF GROWTH IN THAT REVENUE SOURCE.

OUR PROPERTY TAX REVENUE IS GOING UP.

WE'RE INVESTING OVER $3 MILLION JUST IN SALARIES THIS YEAR.

WE DO HAVE SOME PAYMENT IN LIEU OF TAXES COMING IN.

AND THEN ALSO OUR GENERAL GOVERNMENT TRANSFERS.

EXPENDITURES. WE TALKED ABOUT THE MAJOR INITIATIVES OVER TO THE SIDE ALREADY.

THAT'S THE SIGNIFICANT CHANGE THAT YOU WILL SEE HERE.

PURCHASE FOR SERVICES ARE THINGS THAT ARE BASICALLY CONTRACTS WE HAVE IN PLACE. TEND TO GO UP BASED ON INFLATION. BUT WE HAVE SOFTWARE SERVICES AND THINGS OF THAT NATURE. WE HAVE SEEN CHANGES IN THAT OVER THE NEXT YEAR. ECONOMIC DEVELOPMENT FUND.

THIS IS THE FUND I MENTIONED EARLIER WHERE THE PLAN UNDER

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FOR ECONOMIC DEVELOPMENT ACTIVITIES.

UTILITY FUND, OF COURSE THIS IS AN ISSUE OF SIGNIFICANT CONCERN.

WE DO HAVE AND CHALLENGES SPECIFICALLY IN THE AREA OF OUR SOLID WASTE FUNCTION. OUR SOLID WASTE SERVIC COSTS, TREATMENT COSTS HAVE GONE UP SIGNIFICANTLY.

YOU CAN SEE THE EXPENSES HAVE GONE UP 11.4 % FOR GARLAND TREATMENT. OUR COST FOR WATER TREATMENT OR WATER SERVICES HAS ALSO GONE UP BY 9%.

THESE ARE COSTS THAT WE DO NOT HAVE THE ABILITY TO CONTROL.

THEY'RE GIVEN TO US BY OUR SERVICE PARTNERS.

WE DO OF COURSE, HAVE AN ISSUE REGARDING INFILTRATION WHICH HAS INCREASED THE AMOUNT OF WASTE BEING TREATED AND WE ARE INVESTED TO MITIGATE THE COST OVER TIME AND WILL HAVE MORE INFORMATION ON THAT AS WE MOVE FORWARD.

WE ARE PROPOSING AT THIS TIME A SIGNIFICANT CHANGE IN THE RATE.

OF WHICH YOU WILL CONSIDER LATER ON IN TONIGHT'S AGENDA.

REFUSE FUND, THIS IS A FUND WHERE AGAIN WE PAY, WE JUST PASS ALONG THE COST OF OUR CONTRACTOR WITH SLIGHT ADMINISTRATIVE COSTS ON TOP OF IT. WE DO HAVE AN INCREASE IN COST.

WE ALSO HAVE AN INCREASE IN REVENUE TO OFF SET THAT.

OUR WORK HERE IS TO BALANCE THE FUND TO ZERO OVER TIME.

BUT BY THE CONTRACT WE HAVE AN INCREASE BASED ON CONSUMER PRICE INDEX SERVICES AND THAT'S BUILT INTO THE PROPOSAL.

IN OUR DRAINAGE FUND, THIS IS WHERE WE ADDED THE TWO ADDITIONAL PERSONNEL. AND THE ADDITIONAL EQUIPMENT.

TO PROVIDE A HIGHER LEVEL OF SERVICE IN THIS AREA TO REALLY TRY AND ADDRESS THE ISSUES WE HAVE WITH DRAINAGE MAINTENANCE TO REDUCE THE POTENTIAL OF FLOODING IN OUR NEIGHBORHOODS.

AND EMPLOYEE BENEFITS FUND. THIS IS AN AREA WE HAD A PRETTY GOOD EXPERIENCE THIS YEAR. WITH OUR CLAIMS. IT'S BEEN AN UNUSUALLY LOW CLAIM YEAR.

YOU CAN SEE THAT OUR STOP LOSS PREMIUM ACTUALLY WENT DOWN A LITTLE BIT. AND SO DID OUR MEDICAL CLAIMS. WE DO HAVE A SLIGHT INCREASE IN ADMINISTRATIVE COSTS.

OTHER THAN THAT, THIS IS A VERY HEALTHY FUND WHICH WE WILL FINISH TO UTILIZE TO EFFECTIVELY PROVIDE BENEFITS FOR OUR EMPLOYEES. OTHER GOVERNMENTAL FUNDS.

THIS IS THE BIG LONG LIST. SORT OF ADD THOSE ALL UP.

WE HAVE GONE THROUGH IN MORE DETAIL.

JUST TO SUMMARIZE THEM HERE. AND THOSE ARE ALL IDENTIFIED THEY HAVE DIFFERENT VARIOUS RESOURCES AND EXPANDED LINES THAT IS IN THE DOCUMENT BEFORE YOU AND AVAILABLE TO OUR PUBLIC ONLINE. OUR CAPITAL IMPROVEMENT PLAN, THIS IS AN AREA THAT WE HAVE BEEN WORKING ON GETTING MORE SPECIFIC ABOUT OVER TIME. AND GIVING COUNCIL UPDATE.

THESE ARE ALL OF OUR REVENUE SOURCES.

WE HAVE A SIGNIFICANT AMOUNT OF CARRY-FORWARD FUNDS YET TO BE EXPANDED. WE ARE SEEING PROJECTS STARTING TO HAPPEN IN THE COMMUNITY. PRIOR FUNDING CARRIES FORWARD.

SINCE THESE ARE PROJECT ACCOUNTS, WE DON'T HAVE TO REAPPROPRIATE BUT WE HAVE TO MAKE SURE WE HAVE THE FUNDING AVAILABLE FOR FUTURE PROJECTS AS THEY BECOME REQUIRED TO FUND THOSE PROJECTS. SO THIS IS THE NEW FUNDING THAT WE'RE PROPOSING OVER THE NEXT PERIOD OF TIME AND WE PROJECTED THAT OUT OVER FIVE YEARS. THIS IS CONTINUING THAT LIST OF CAPITAL IMPROVEMENT PROJECTS. ANOTHER WAY TO SHOW.

THE CARRY FORWARD AND THE $53 MILLION TO GIVE US A TOTAL OF FY 27 OF $227 MILLION. A LOT OF THIS IS FOR REPAIRS OF EXISTING ASSETS. SO THIS INCLUDES OUR ASPHALT REPLACEMENT. SIDEWALK PROGRAM ET CETERA AND ALSO INCLUDING NEW ASSETS. AS WE REPLACE POLICE AND FIRE AND OTHER OPERATIONAL VEHICLES INCLUDED IN THIS AS WELL AS COMMUNITY GRANT PROGRAMS. LIKE OUR COMMUNITY DEVELOPMENT ROCK PROGRAM. THIS SAYS QUESTIONS.

AS WE TALKED ABOUT, DON'T GIVE ME ANY.

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>> WITH THAT, I WANT TO AGAIN SAY THANK YOU TO THE TEAM OUT HERE THAT HAS SPENT A LOT OF TIME PUTTING THIS TOGETHER AND THANK YOU FOR YOUR PATIENCE. WORKING WITH ME ON THE INTERIM BASIS TO MAKE THIS AVAILABLE TO YOU.

AND WITH THAT, I THINK WE CAN MOVE ON TO THE NEXT ITEM.

>> KRISTOF, THANK YOU TO YOU AND THE TEAM WHO PUT THIS TOGETHER.

I KNOW IT'S A TREMENDOUS AMOUNT OF EFFORT AND TIME AND ENERGY AND SO THANK YOU. THANK YOU ESPECIALLY TO OUR FINANCE TEAM WHO IS THE C CULMINATOR AND THE EXECUTIVE TEAM WHO WORKS WELL TO REPRESENT THEIR TEAMS AND UNDERSTAND THE NEEDS AND CONSTRAINTS WE HAVE AS A CITY.

THANK YOU VERY MUCH. NEXT WE WILL MOVE TO ITEM THREE.

CITIZENS INPUT. COMMENTS WILL BE TAKEN FROM THE PUBLIC. DO WE HAVE ANYONE FROM THE

[4.A. Consider action to adopt a resolution amending the Master Fee Schedule for rate and fee changes to the following sections: Solid Waste and Utilities. ]

4 A, CONSIDER ACTION TO THE RATE FEE SCHEDULE CHANGES TO SOLID

WASTE. >> GOOD EVENING COUNCIL.

THIS PRESENTATION WILL PROVIDE INFORMATION ON THE PROPOSED CHANGES TO FEES GENERATING REVENUE FOR THE REFUSE FUND AND THE UTILITY FUND IN CONJUNCTION WITH THE '27 YEAR PROCESS.

TWO SECTIONS WITHIN THE MASTER FEE SCHEDULED.

THE REVENUE PROJECTIONS WITHIN THE YEAR 27 PROPOSED BUDGET DO INCLUDE THESE CHANGES BEING PROPOSED TONIGHT.

FIRST, IN THE SOLID WASTE SECTION.

CHANGES TO RATE REFLECT THE RECOMMENDATIONS PRESENTED BY STAFF AND AGREED BY COUNCIL ON JUNE 29TH BUDGET COUNCIL SESSION. THE RATES THROUGH THE REPUBLIC SERVICES CPI INCREASE OF 5% AND THESE CHANGES AND FEES REPRESENT A 3.5 INCREASE TO RESIDENTIAL CUSTOMERS EQUATING TO $0.78 PER MONTH FOR RESIDENTS WITH ONE POLYCART AND 5% INCREASE TO COMMERCIAL CUSTOMERS. IN UTILITY SECTIONS.

CHANGES TO SEWER AND WATER REFLECT THE RECOMMENDATIONS PRESENTED BY THE RATE CONSULTANT AT THE JUNE 29TH AND JULY 17TH COUNCIL BUDGET STRATEGY SESSIONS AND AGREED UPON AT THE JULY 17TH SESSION. THE CHANGES AND FEES REPRESENT A 5% WATER RATE INCREASE AND 8% WASTE AND 21% AND 32% WATER, SORRY WATER RATE INCREASE AND 32% WASTEWATER INCREASE TO COMMERCIAL CUSTOMERS. A RESIDENTIAL CUSTOMER USING 7500 WOULD SEE A 13% OR $18 INCREASE IN THEIR MONTHLY BILL.

THE RATE CHANGES REFLECT PASSING THROUGH SUSTAINABILITY COSTS INCLUDING THE CONTRACT INCREASES FROM NORTH TEXAS MUNICIPAL WATER TREATMENT AND THE CITY OF GARLAND.

AND AT THIS TIME, I WOULD LIKE TO INTRODUCE JASON GRAY, OUR RATE CONSULTANT UP TO THE PODIUM.

HE'S HERE TO PRESENT DETAILS OF ALL OF THE FACTORS CONTRIBUTING TO THE CUSTOMER RATE INCREASE OPTIONS DISCUSSED WITH COUNCIL AT THE BUDGET STRATEGY SESSIONS THIS YEAR.

>> THANK YOU, WENDY. MAYOR, AND COUNCIL, PLEASURE TO BE HERE AGAIN WITH YOU TONIGHT. MY NAME IS JASON GRAY, VICE PRESIDENT WITH WILD FINANCIAL SERVICES PROVIDING YOUR UTILITY RATE STUDIES FOR A YEAR OF YEARS NOW.

AS WENDY POINTED OUT AND THE CITY MANAGER POINTED OUT, THE COST INCREASES THAT WE'RE RECOMMENDING ON THE WATER AND WASTEWATER SIDE ARE LARGELY DUE TO PASS THROUGH COSTS YOU HAVE FROM YOUR WHOLESALE PROVIDERS NORTH TEXAS MUNICIPAL WASTE DISTRICT AND CITY OF GARLAND ON THE WASTEWATER SIDE.

AND YOU HAVE INCREASED INFLOW AND YOU KNOW YOU HAVE BEEN WELL BRIEFED ON THAT AND THERE'S A PLAN OF ACTION IN PLACE.

OUR LONG-TERM RATE PLAN DOES LOOK FORWARD TO THAT BEING RESOLVED WITHIN THE RELATIVELY NEAR FUTURE.

HOWEVER WE'RE NOT EXPECTING THAT TO BE COMPLETELY RESOLVED WITHIN THE NEXT FISCAL YEAR. WE THINK IT WOULD BE IMPRUDENT

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WE WENT INTO DETAIL AND I DON'T INTEND TO GO THROUGH THAT IN DETAIL. I WANT TO BRING BACK TO YOUR ATTENTION THE THREE PRIMARY FACTORS THAT ARE CONTRIBUTING TO THESE WATER AND WASTEWATER RATE INCREASES THAT WE'RE RECOMMENDING THIS YEAR. WHEN WE LOOK AT THE TOTAL COST OF PURCHASING WATER AND THE TOTAL COST OF TREATING YOUR WASTEWATER, THESE ARE IN EACH SIDE OF THE DEPARTMENTS, THE SINGLE LARGEST LINE ITEM WITHIN THE BUDGETS FROM A WATER PERSPECTIVE. CURRENTLY YOU'RE SPENDING $13 MILLION TO PURCHASE WATER THROUGH NORTH TEXAS.

WE EXPECT A RATE INCREASE OF 9%. THEY ARE TYPICALLY ARE PRETTY CLOSE. THEY DON'T VARY MUCH FROM THEIR SUGGESTION AND AFTER THAT, IN FUTURE YEARS AGAIN WE'RE LOOKING AT A ONE-YEAR RATE TONIGHT AND IN FUTURE YEARS WE EXPECT A 7.3 % INCREASE THERE AFTER. ON THE WASTEWATER SIDE, IT'S TREATED BY CITY OF GARLAND AND YOU CAN SEE HERE WE DO HAVE A DECREASE SCHEDULED OR ASSUMED FOR FISCAL 2028.

RIGHT NOW YOUR TOTAL COST IS $9.6 MILLION.

WE EXPECT THAT TO GO UP TO $11.8 MILLION IN THE NEXT YEAR AND THAT IS DUE TO THE CITY OF GARLAND'S INCREASE OF 11.4 %.

BUT THEN BY 2028, ASSUMING THE INI ISSUE IS ELIMINATED, WE EXPECT THAT TOTAL COST TO COME DOWN TO $10 MILLION.

BUT THEN INCREASE AT 5% THEREAFTER FROM THE CITY OF GARLAND AS WELL. THAT'S JUST A MATTER OF FACT.

WITH PURCHASING SERVICES THROUGH WHOLESALERS, YOU TYPICALLY WILL HAVE COST INCREASES THAT YOU NEED TO CONSIDER PASSING THROUGH TO YOUR CUSTOMERS ON AN ANNUAL BASIS BECAUSE THIS IS SUCH A LARGE PORTION OF YOUR OVERALL OPERATING FUND FOR THE UTILITIES. WHEN WE LOOK AT THE HISTORY OF PASS THROUGHS ESSENTIALLY AND AGAIN RECOGNIZES THAT PURCHASING WATER AND WASTEWATER SERVICES IS NOT THE ONLY COST OBVIOUSLY WITHIN THE FUND, HOWEVER IT IS THE LARGEST SINGLE ITEM ON WATER AND WASTEWATER SIDE. WHEN YOU LOOK AT THE NORTH TEXAS INCREASE OVER THE PAST SEVERAL YEARS, YOU CAN SEE EXPECTED TO BE 9% THIS YEAR. 7% LAST YEAR.

6% THE PREVIOUS. 9 AND 13 WHERE YOUR INCREASE LOCALLY HAS BEEN 8, 4, 6 AND 0 BACK IN 2022, WHICH WAS A COVID ADJUSTED YEAR. THE FIRST YEAR IN NORTH TEXAS', MY EXPERIENCE WITH NORTH TEXAS OF ALMOST 30 YEARS THEY DID NOT DO A RATE INCREASE BACK IN FISCAL '22.

CITY OF GARLAND ALSO HAD SIGNIFICANT INCREASES OVER THE PAST SEVERAL YEARS. INCREASES THAT GENERALLY SPEAKING TO AN EXTENT WERE PASSED THROUGH BY YOU AGAIN RECOGNIZING FISCAL '27 ANTICIPATED AT 10%.

TWENTY-SIX ALSO AT 10%. FISCAL '25 AT 5.

YOU PASSED ON THREE. FISCAL 24, CITY GARLAND THREE %.

YOUR RATE ADJUSTMENT WAS 4%. 23 AND THEIRS WAS 5% AND YOURS WAS 2% AND YOU ACTUALLY DECREASED WASTEWATER RATE IN '22 BY 5% ALTHOUGH CITY OF GARLAND INCREASED THEIR RATE TO YOU AT 2%. IT'S NEVER GOING TO BE A ONE TO ONE PASS THROUGH. IN ANY YEAR IN WHICH YOU'RE NOT FULLY RECOVERING THAT PASS THROUGH, IT DOES ADD UP AND IN PARTICULAR THIS IS ONE OF THOSE THINGS THAT HAS PUT SOME ADDITIONAL STRAIN ON YOUR DEBT SERVICE COVERAGE RATIO AS WELL.

SPEAKING OF DEBT SERVICE COVERAGE RATIO.

YOU'RE A A- FOR WATER AND SEWER BONDS BY MAJOR AGENCIES OUT THERE. ONE OF THE THINGS I WANT TO MAKE CLEAR IS RECOGNIZING THE FACT THAT WHILE IT IS CALLED A DEBT SERVICE COVERAGE RATIO, THE PORTION THAT GOES INTO WHAT YOU'RE COUNTED AGAINST ESSENTIALLY DOES INCLUDE THE NORTH TEXAS MUNICIPAL WATER CONTRACT FOR PURCHASING WATER.

THAT IS CONSIDERED A DEBT. AND AS THEY INCREASE THEIR COSTS TO YOU EACH YEAR, THAT MEANS THAT IT HAS AN IMPACT ON YOUR DEBT SERVICE COVERAGE RATIO BECAUSE IT'S COUNTED AS OF AS DEBT BECAUSE IT'S A CONTRACT REVENUE BOND.

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HOWEVER, RECOGNIZING THAT WILL CONTINUE TO PLACE STRAIN ON YOUR COV COVERAGE RATIO OF HOW MANY DEBT YOU SELL BECAUSE YOU PURCHASE WATER AT A HIGHER PRICE AND THAT IS COUNTED AGAINST YOU AS DEBT SERVICE.

ONE OF THE THINGS WE WORKED WITH STAFF DILIGENTLY ON IS TRYING TO MAKE SURE YOU'RE IN A POSITION TO MAINTAIN YOUR CURRENT A A A A- IS A GOOD CREDIT RATING AND GIVES YOU ABILITY TO ACCESS MONEY AT LOWER RATES THAN IF YOU HAVE A DOWNGRADED CREDIT RATING.

AND SO DOLLARS A FINANCIAL ASPECT OF THIS AS WELL AS OBVIOUSLY SHOWING THE COMMUNITY THAT YOU ARE STEWARDING THE MONEY TO THE BEST OF YOUR ABILITY.

I WILL NOT GO INTO DETAIL AGAIN ON THE SIX DIFFERENT SCENARIOS IN WHICH WE HAVE RUN THE NUMBERS THAT WENDY POINTED OUT EARLIER ARE THE SCENARIO 6 NUMBERS WHICH RESTRUCTURES YOUR COMMERCIAL TO AN EXTENT. TRIES TO MAKE SURE YOUR COMMERCIAL IS PAYING ITS FULL COST OF SERVICE AND THAT IT IS NOT ESSENTIALLY BE SUBSIDIZED BY RESIDENTIAL.

IT DOES REQUIRE A 5% WATER ON THE RESIDENTIAL SIDE AND 21% ON THE SEWER FOR RESIDENTIAL AND 32% SEWER ON COMMERCIAL.

THE PROJECTED DEBT SERVICE COVERAGE RATIO ACCORDING TO THE STANDARD AND POURS METHOD IS 1.14 ASSUMING THE ASSUMPTIONS HOLD AND YOUR PROJECTED FUND BALANCE DAYS WOULD BE 158.

BOTH VERY SOLID PIECES OF WHERE WE'RE AT.

AGAIN WE HAVE RUN A NUMBER OF DIFFERENT SCENARIOS LOOKING AT DIFFERENT WAYS TO HELP MITIGATE THE INCREASES TO YOUR CITIZENS AND TO YOUR COMMERCIAL PAYERS AS WELL.

HOWEVER, WITH THE INCREASED COST AND THE DEBT SERVICE COVERAGE RATIO PUSH, THESE ARE LOW AS WE FEEL COMFORTABLE RECOMMENDING TO YOU TO KEEP THE CREDIT RATING IN TACT.

YOUR FUND BALANCE AND KEEPING A STRONG AND SUSTAINABLE UTILITY OPERATING. THIS IS A REPEAT OF THE FIRST SLIDE AGAIN. I WILL JUST POINT OUT THAT THE DOLLAR CHANGE THAT WE'RE EXPECTING ON YOUR TYPICAL RESIDENTIAL BILL OF ABOUT 7500 GALLONS IS ABOUT $18.82 A MONTH.

13% BETWEEN WATER AND WASTEWATER AND HAPPY TO TAKE QUESTIONS

GOT. >> THANK YOU.

SIR. COUNCIL, WHAT QUESTIONS DO YOU HAVE? ALL RIGHT.

THANK YOU VERY MUCH. >> THANK YOU.

WENDY, DID YOU HAVE ANOTHER PART OF THE PRESENTATION OR THAT'S IT? THAT'S IT.

COUNCIL, ANY QUESTIONS FOR WENDY.

>> I DO HAVE A QUESTION. AT THE START OF YOUR SLIDE, WENDY, YOU TALKED ABOUT THE REFUSE RATES, YOU MENTIONED A RATE INCREASE PER POLYCART. SINCE MOST OF OUR RESIDENTS HAVE BOTH A WASTE AND A RECYCLE, IS THAT TWICE THE INCREASE?

BECAUSE IT SAID PER CART >> THERE IS AN INCREASE FOR A RESIDENTIAL CART. I DIDN'T PUT THAT SPECIF BUT I

GET THAT FOR YOU. >> WENDY, I THINK HE'S TALKING

ABOUT HAVING RECYCLE AND TRASH. >> RIGHT.

>> SO IT'S JUST ONE FEE FOR BOTH?

>> I BELIEVE IT'S TWO. THERE'S A FEE FOR -- CAN YOU

PULL UP THE REFUSE. >> SEPARATE FOR RECYCLE.

>> IT'S FOR ADDITIONAL ONLY IS HOW I READ IT.

>> SO YOU GET, THE RESIDENTS WILL HAVE A TRASH AND RECYCLE WITH THE COST THEY STATED. ADDITIONAL WILL COST YOU MORE

FOR ADDITIONAL CARTS. >> THAT WAS MY QUESTION.

IF IT WAS GOING TO BE REPLICATED ON THE COST BECAUSE YOU HAD A

RECYCLE AND WASTE. >> APOLOGIZE.

>> THE INCREASE IS JUST FOR THE THIRD CART.

>> GOT YOU. GOT YOU.

COUNCIL, ANY OTHER QUESTIONS FOR WENDY? ALL RIGHT. THANK YOU.

WENDY. COUNCIL THIS IS AN ACTION ITEM.

AGAIN THE ITEM IS TO CONSIDER ACTION TO ADOPT THE RESOLUTION AMENDING MASTER FEE SCHEDULE FOR RATE AND FEE CHANGES TO THE FOLLOWING SECTION, SOLID WASTE AND UTILITIES.

I WILL ENTERTAIN A MOTION. MOTION BY MR. BRITTON.

>> THANK YOU, MAYOR. I MOVE THAT WE APPROVE AS

PRESENTED AND READ. >> WE HAVE A MOTION TO APPROVE

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ALONG WITH A SECOND. >> I SECOND.

>> MOTION TO APPROVE AND SECOND. DISCUSSION? NO DISCUSSION. SO I'LL BRING UP A COUPLE QUESTIONS WE GOT TODAY FROM SOME FOLKS IN THE PUBLIC SPHERE.

I KNOW WE GOT THE SAME FORM LETTER FROM A HANDFUL OF RESIDENTS. SO I THINK IT'S IMPORTANT TO ADDRESS THESE. KRISTOF.

WE'RE ASKING FOR A CLEAR COST OF SERVICE CALCULATION SHOWING GARLAND'S ACTUAL RATE INCREASE. I THINK THAT WAS DEMONSTRATED IN THE PRESENTATION. IS THERE ADDITIONAL LIGHT?

>> OUR ESTIMATE IS 11.4 AND THAT'S BASED OFF THE INFORMATION THEY HAVE GIVEN US AS FAR AS WHAT THEY INTEND TO CHANGE THEIR RATE. THEY ARE ADJUSTING THEIR RATES AS THE NORTH TEXAS MUNICIPAL WATER DISTRICT IS.

WE TAKE THEIR GUIDANCE AND THAT'S WHERE THAT FIGURE COMES

FROM. >> REALISTICALLY, DO WE HAVE ANY IDEA HOW MUCH THE INI IS COSTING US AND BY EXTENSION OUR RESIDENTS? IS THAT REALLY, SEEMS TO ME THE ONLY WAY TO BENCH MARK THAT IS LOOK AT WHAT WE HAD HISTORICALLY AND REALIZE WE HAD A FAILURE AND NOW A DIFFERENT VOLUME THAT'S

BEING PROCESSED. >> WE HAVE BEEN ABLE TO SEE THE VOLUME INCREASED DRAMATICALLY, WHAT WE HAVE BEEN ABLE TO CALCULATE IS WHAT A NORMAL HOUSEHOLD GENERATES AND WHAT GROWTH SHOULD GENERATE VERSUS WHAT WE'RE SEEING.

THAT'S WHERE WE COME UP WITH THE INTERSTATE FOR WHAT THE IMPACT IS FROM INI ON THAT VOLUME. SO THERE ISN'T ANY WAY TO DIRECTLY MEASURE IT. WE HAVE TO ESTIMATE IT.

THAT'S THE METHODOLOGY WE USE. I HAVE WATCHED IT INCREASE SIGNIFICANTLY, AND WE ALSO WATCH IT, THE OTHER PIECE WHEN IT RAINS, OF COURSE, OUR VOLUME GOES UP.

SO THAT'S ANOTHER CLUE DRIVEN BY INI.

THE CHALLENGE IS TO FIND THE POINT SOURCES WE HAVE INFIL INFILTRATION.

AS WE DISCUSSED, UNFORTUNATELY, IT'S IMPOSSIBLE TO KNOW HOW MUCH OF AN IMPACT WE WILL HAVE UNTIL AFTER WE COMPLETED WORK AND THEN HAVE GONE THROUGH ANOTHER PERIOD OF WHAT, ANOTHER WET SEASON.

>> IT WAS IN THE PRESENTATION, BUT I WANT TO REITERATE.

IT'S IMPORTANT BECAUSE IT'S IN YOUR BUDGET DOCUMENT, IT'S IN YOUR OPENING PRESENTATION TO THE COUNCIL THAT THE DECISION TO SET RATES NECESSARY TO PASS THROUGH THESE INCREASED COSTS IS USED TO PROTECT THE CITY'S HIGH-QUALITY BOND RATES AND PLANNED UTILITY DEBT AND ADDRESSING INI IS A HIGH PRIORITY FOR 27.

WHEN THE QUESTION IS RAISED. IS THERE A PLAN FOR THE CITY TO CONTINUE TO PASS THE COSTS OF THAT FAILURE OR THOSE ISSUES THAT WE'RE HAVING ON TO YOUR RESIDENTS IS NOT THE CASE REALLY BEYOND THIS NEXT FISCAL YEAR, CORRECT?

>> THE UNFORTUNATE REALITY IS THAT THERE ISN'T A WAY FOR US TO NOT COVER THE COSTS THAT ARE GENERATED BY THE SYSTEM.

WE ARE WORKING TO MITIGATE AND REDUCE THOSE COSTS ACTIVELY.

IN FACT, ONE OF THE POSITIONS I TALKED ABOUT ADDING TO THE BUDGET IS A POSITION IN CHANGING OUR LEADERSHIP AND DESIGN TO FOCUS ON THIS PROBLEM. WE ARE TRYING TO MITIGATE THE COST. THE CHALLENGE WE HAVE IS, IT'S UNFORTUNATE THAT WHAT YOU'RE FACING IS THE TOUGH PROBLEM IS WE HAVE TO COVER THE COSTS. THERE'S NO ALTERNATIVE THAN TO PAY THE BILL THAT HAS BECOME DUE.

IN ORDER TO CONTINUE TO PROVIDE THE SERVICES TO OUR CITIZENS

WHICH THEY NEED. >> GOT IT.

CURRENTLY, WE DON'T HAVE A FUNDED PLAN FOR THE INI REPAIR OUTSIDE OF THE WORK THAT WE'RE ALREADY PLACING ON TO OUR EXISTING PUBLIC WORKS TEAM. IS THAT CORRECT?

>> WE DON'T HAVE, WE HAVEN'T INCREASED OUR OPERATIONAL COST OTHER THAN THE POSITION I IDENTIFIED IN THE BUDGET EARLIER. WE HAVEN'T SET ASIDE ADDITIONAL FUNDING TO TACKLE THIS. WE'RE USING OUR CURRENT OPERATIONAL RESOURCES MORE FOCUSED ON THIS PROBLEM TO TRY

TO SOLVE IT. >> AND WE HAVE A MAN HOLE

REMEDIATION PROGRAM. >> THAT'S PART OF OUR

PROGRAM. >> RIGHT.

>> I THINK THAT ADDRESSES MOST OF THE QUESTIONS.

THE LAST QUESTION I REALLY HAVE, THERE WAS A SUGGESTION BY THE FOLKS WHO SENT IN THE E-MAILS THAT WE DELAY THIS VOTE.

IS THERE ANY, I MEAN IS THERE ANY DOWN SIDE TO DELAYING THIS? I FEEL CONFIDEN I HAVE ALL MY QUESTIONS ANSWERED.

IS THERE A DOWN SIDE TO DELAYING THIS ACTION BEYOND TONIGHT?

>> THIS IS SIMPLY ABOUT MOVING FORWARD WITH THE PROPOSED

[00:35:02]

THIS IS A REVENUE SOURCE BUILDING THAT SECTION OF OUR BUDGET. THE REASON WE BROUGHT THESE ITEMS TO YOU TONIGHT IS TO SET THE PARAMETERS TO MAKE SURE THE PROPOSED BUDGET WE HAVE IN FRONT OF YOU IS FUNDED.

>> OKAY. THAT'S ALL THE QUESTIONS OR COMMENTS. COUNCIL, ANY OTHER QUESTIONS OR COMMENTS BEFORE WE MOVE AHEAD? GOING ONCE.

GOING TWICE. LET'S CALL THE VOTE PLEASE.

[4.B. Consider action to adopt a resolution calling for a public hearing on the Fiscal Year 2027 Proposed Budget and tax rate for Tuesday, September 15, 2026, and to consider approval of a maximum tax rate of $0.867875 for Fiscal Year 2027.]

NEXT WE WILL MOVE TO ITEM 4 B. CONSIDER ACTION TO CALL FOR A PUBLIC HEARING ON THE 2027 PROPOSED BUDGET FOR TUESDAY SEPTEMBER 15, 2026, AND TO CONSIDER APPROVAL OF A MAXIMUM TAX RATE OF 0.86785 FOR FISCAL YEAR 2027.

MICHAEL KUHN. >> ALL RIGHT.

GOOD EVENING COUNCIL. AS READ BY THE MAYOR, WE ARE HERE TONIGHT TO DISCUSS THE FISCAL YEAR 2027 TAX RATE CEILING. THE PROPOSED TAX RATE AND THE CITY MANAGER'S BUDGET AS WELL AS PROPOSING A SETTING UP A PUBLIC HEARING AS REQUIRED UNDER STATE LAW.

SO THE TAX RATE IS GOVERNED BY TRUTH IN TAXATION ADAPTED BY THE TEXAS LEGISLATURE. WE RECEIVED CADS FROM THE APPRAISAL DISTRICTS TO SET THE HOME VALUES AND PROPERTY VALUES AND FILL OUT A WORKSHEET, THE TRUTH IN TAXATION ON JULY 29TH IN CONCERT WITH DALLAS COUNTY. THEY ACTUALLY PREPARE OUR WORKSHEET FOR US AND WE REVIEW AND PROOF IT TO MAKE SURE THEY ARE FILLING IT OUT PROPERLY. SO THAT'S KIND OF FIRST STEP IN THE PROCESS WHICH WE HAVE PASSED HERE TONIGHT.

WE ARE LOOKING TO SET THE PROPOSED TAX RATE AND THE CEILING. SO THE VOTE THERE'S GOING TO BE, WE'RE GOING TO REQUEST YOU HAVE A VOTE TO ADOPT A MAXIMUM TAX RATE. IT'S GOING TO BE PUBLISHED IN THE NEWSPAPER AND WE WILL COME BACK FOR A PUBLIC HEARING ON SEPTEMBER 15TH. FOR BOTH THE HEARING FOR THE BUDGET AS WELL AS THE TAX RATE. AND SO, WITH THAT, THE NEXT STEP IS THE PUBLIC HEARING AND THEREAFTER THE ADOPTION OF THE BUDGET AND TAX RATE. SO ON THE SLIDE PRESENTED HERE, WE HAVE THE VARIOUS TAX RATES THAT WERE CALCULATED.

PART OF THE TRUTH IN TAXATION. STARTING ON THE LEFT-HAND SIDE, LAST YEAR'S RATE OF 81 POINTS. $0.54 TOWARDS MAINTENANCE AND OPERATIONS, THAT FUNDS CITY STAFF AND INS RATE OF $0.27.

VOTER APPROVED PROJECTS AND VEHICLES AND EQUIPMENT FUNDED OUT OF THE TAX NOTES. THE SECOND COLUMN IS THE PROPOSED BUDGET RATE WHICH MATCHES THE TAX RATE FOR FISCAL YEAR 2026. THE PROPOSED BUDGET PRESENTED BY THE CITY MANAGER EARLIER IN THIS MEETING IS FOR .807891.

THAT HAS MAINTENANCE AND OPERATION RATE OF .538841 AND MATCHING THE EXISTING RATES UNDER THE CURRENT TAX YEAR.

ONE OF RATES CALCULATED IS THE NO NEW REVENUE RATE.

THE AMOUNT TO GENERATE THE SAME RATE.

INCLUDING PROTESTS, YOU WILL NOTICE IT IS SLIGHTLY HIGHER THAN THE ADOPTED RATE FOR FISCAL '26 AND PROPOSED RATE OF FOR 27 FOR.88101. THE RATE NEEDED TO PAY FOR DEBT SERVICE NEXT YEAR AND MAINTENANCE AND OPERATION RATE OF .541941 AND THE VOTER APPROVED TAX RATE.

THE SUGGESTED RATE FOR PUBLISHMENT.

THE MAXIMUM THAT THE COUNCIL COULD APPROVE WITHOUT GOING TO THE VOTERS. SO IT IS CALCULATED BASED ON THE NO NEW REVENUE RATE PLUS A GROWTH FACTOR AS WELL AS ANY UNUSED INCREMENT. THAT RATE FOR THIS YEAR IS.866878. IT'S MAINTENANCE OF.98825.

SO THE VOTER APPROVED RATE IS ABOUT A $0.06 INCREASE.

HISTORICALLY AND WHAT WE'RE PROPOSING TONIGHT IS THAT COUNCIL ADOPT THE VOTER APPROVED RATE BECAUSE IT GIVES YOU THE

[00:40:02]

>> I GUESS I WENT OVER A LOT HERE.

ANY QUESTIONS ON WHAT IS PRESENTED HERE ON THIS SLIDE?

>> YEAH. SO I MEAN, THAT'S I'M GLAD TO SEE THIS SLIDE. THIS SLIDE IS REALLY IMPORTANT SLIDE THAT BEARS A LOT OF ATTENTION.

MAINLY BECAUSE OF WHAT YOU SAID ABOUT THE NO NEW REVENUE RATE.

WHAT WE'RE EFFECTIVELY TALKING ABOUT IN MY MIND IS A TAX DECREASE. I KNOW THE STATE WOULDN'T CALCULATE IT THAT WAY BECAUSE WE'RE RAISING MORE MONEY THAN WE RAISED LAST YEAR, BUT IN PAGE, THE COVER PAGE OF THE BUDGET BOOK THAT WE ALL HAVE BEEN PROVIDED AND WILL BE REVIEWING NEXT WEEK STATES THIS WILL RAISE MORE MONEY BY ABOUT 4.1 MILLION.

. OF THAT AMOUNT, LEGAL 2.2 MILLION MORE THAN THE 4.1 MILLION IS RAISED FROM NEW PROPERTY ADDED TO THE TAX ROLE FOR OUR EXISTING RESIDENTS MEANS IT'S EFFECTIVELY A REDUCTION IN THEIR TAX BILL AND ALL IS ADDED THROUGH NEW DEVELOPMENT. IS THAT A FAIR ASSESSMENT?

I KNOW THAT'S -- >> THAT'S EXACTLY TRUE AND ONE OF OUR CHALLENGES WITH THE LANGUAGE THAT THE LEGISLATURE GIVES US. THEY DON'T ALLOW YOU TO SAY YOU'RE REDUCING THE TAX RATE. EVEN THOUGH WE ARE EFFECTIVELY REDUCING THE IMPACT ON OUR CURRENT RATE OR PAST TAXPAYERS IT STILL SAYS WE'RE ACTUALLY INCREASING BY 2.32.

THERE WILL BE ANOTHER STATEMENT THEY WILL MAKE YOU MAKE WHEN YOU ADOPT THE TAX RATE WHICH WILL BE A BIT OF FICTION AND WE HAVE TO WALK THROUGH. WE ARE ADOPTING A RATE BELOW THE NO NEW REVENUE RATE. AND IT'S ACTUALLY BELOW, WE'RE ACTUALLY THE REVENUE. WE WOULD HAVE GENERATED IF WE JUST WOULD HAVE CAPTURED GROWTH. 8.11 WOULD HAVE CAPTURED GROWTH AND NOT AN INCREASED BURDEN ON OUR TAXPAYERS.

WE'RE ACTUALLY BELOW THAT RATE. IN ORDER TO KEEP IT STABLE, WHICH IS WHAT YOU DIRECTED US TO DO WHEN WE BEGAN THIS PROCESS.

>> COUNCIL, ANY OTHER QUESTIONS ON THIS SLIDE IN PARTICULAR? OR ANYTHING MIGHT BE HAS COVERED SO FAR?

>> ALL RIGHT. NEXT SLIDE.

>> SO HERE'S A SUMMARY OF COUNCIL ACTION REQUEST THAT WILL BE ON A FOLLOWING SLIDE. TWO ITEMS. ONE A VOTE TO SET THE PROPOSED TAX RATE AND TO BE PUBLISHED FOR A PUBLIC HEARING AND CALL ON TUESDAY SEPTEMBER 15TH AT 7:00 P.M. WE HAVE THAT IN TEXT FORM HERE

WITH SUGGESTED LANGUAGE. >> AND AGAIN THAT'S SEPTEMBER 15TH DATE IS THE MEETING THAT WE WILL HEAR AND POSTPONE TO THE FOLLOWING DAY, THE 16TH.

>> THE VOTE WOULD OCCUR ON SEPTEMBER 16, 2026.

AND I GUESS JUST TO REITERATE FOR EVERYBODY'S BENEFIT, THE VOTE IS FOR THE, TO PUBLISH THE VOTER APPROVED TAX RATE THAT COULD BE ENACTED BY COUNCIL WITHOUT GOING TO THE VOTERS.

HOWEVER, THAT GIVES YOU THE ABILITY BUT NOT THE OBLIGATION TO ADOPT THAT RATE. THE CITY MANAGER'S PROPOSED BUDGET RATE IS THE EXISTING TAX RATE FOR THE CURRENT TAX YEAR OF 807891 AND THIS HAS BEEN STANDARD PRACTICE AT THE CITY

FOR SOME TIME. >> UNDERSTOOD, THANK YOU.

MIKE. COUNCIL, ANY QUESTIONS?

>> JUST WANT TO CLARIFY THAT THE RATE OF .8079 DID NOT INCREASE OVER THE PREVIOUS YEAR. AND THAT THIS IS WHAT WE'RE ADOPTING IS 8678, THAT'S THE MAXIMUM THAT THE RATE, WE CAN STATE CLEARLY WE DID NOT RAISE THE TAX RATE THIS YEAR.

>> THAT'S CORRECT. IF WE ADOPT THE PROPOSED BUDGET WHEN WE GET DO THAT POINT AS IS AND ADOPT THE TAX RATE AS IS, THAT WOULD BE WHAT WOULD HAPPEN. WE WOULD ADOPT EFFECTIVELY THE SAME. NOT ONLY THE SAME TAX RATE AS WE HAD IN FISCAL YEAR '26, BUT WE WOULD ALSO ADOPT A TAX RATE THAT IS BELOW THE NO NEW REVENUE RATE AND I PERSONALLY CAN'T REMEMBER A TIME WHEN THAT'S HAPPENED BUT IT CERTAINLY COULD HAVE IN THE

PAST. >> I JUST WANT TO CLARIFY THE O& M RATE REMAINED STABLE SINCE 2017.

AND ACTUALLY IN 2017 IT WAS .55 AND NOW IT'S.54.

I JUST WANT TO CLARIFY THE O& M RATE IS STABLE.

>> THE ACTION TONIGHT IS TO CONSIDER PUBLISHING NOT ADOPTING, PUBLISHING THE RATE OF 0.86785 FOR THE PURPOSES OF

[00:45:05]

WE ARE INTENT IF I'M NOT READING THE TEA LEAVES.

ADOPT THE RATE SAME AS FISCAL YEAR '26.

>> THANK YOU FOR CLARIFYING THAT.

>> COUNCIL, ANY OTHER QUESTIONS OR COMMENTS?

I WILL ENTERTAIN A MOTION. >> AND THE MOTION LANGUAGE IS IN THE PACKET ON PAGE 19. OKAY.

IT'S BACK. MOTION BY MR. GIBBS.

>> OKAY. I MOVE TO APPROVE A RESOLUTION SETTING THE MAXIMUM PROPOSED TAX RATE AT 0.867875 AND CALLING FOR A PUBLIC HEARING. ON THE FY 2027 BUDGET AND TAX RATE TO BE HELD ON TUESDAY, SEPTEMBER 15TH, 2026, AT

7:00 P.M. >> WE HAVE A MOTION AND SECOND

BY MR. BRITTON. >> WE HAVE MOTION TO APPROVE AS PRESENTED AND SECOND. ANY DISCUSSION? ALL RIGHT. CALL THE VOTE PLEASE.

AND THAT ITEM CARRIES UNANIMOUSLY.

OKAY. MEMBERS OF THE CITY COUNCIL MAY REUEST TOPICS BE PLACED ON AGENDA FOR SUBSEQUENT MEETING.

ANY AGENDA REQUESTS.

* This transcript was compiled from uncorrected Closed Captioning.