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[Special City Council Meeting on August 20, 2024.]
I'M GOING TO CALL THIS MEETING TO ORDER.WE'RE GONNA START WITH AGENDA ITEM ONE, CONDUCT PUBLIC HEARING BEFORE THE CITY COUNCIL OF CITY OF MEADOWS PLACE, TEXAS TO HEAR ANY AND ALL PERSONS DESIRING TO BE HEARD.
CONCERNING CITY OF MEADOWS PLACE, MUNICIPAL BUDGET FOR FISCAL YEAR 2024.
BEFORE RIGHT HERE, I'M OPENING THE PUBLIC HEARING.
BEFORE WE TAKE PUBLIC COMMENT, OUR FINANCE DIRECTOR, ANNA MARIA, IS GOING TO GIVE YOU A BRIEF REVIEW OF THE BUDGET PROCESS, JUST SO THAT WE'RE ALL ON THE SAME PAGE.
I WANNA REVIEW AND REMIND EVERYBODY THAT THE BUDGET THAT WE'RE, THAT IS BEING PROPOSED, ADOPTED TONIGHT IS BACK BASICALLY TWO BUDGETS.
THERE'S THE GENERAL OPERATING BUDGET AS WELL AS THE UTILITY OPERATING BUDGET.
THE REVENUE SOURCES ARE FROM PROPERTY TAXES, THE SALES TAX, CITY FEES, UM, FINES AND FORFEITURES.
EXPENDITURES FOR THE GENERAL OPERATIONS IS FOR CITY SERVICES, PUBLIC SAFETY, FIRE PROTECTION, ROAD MAINTENANCE, PARKS AND REC, AND CITY STAFF COMPENSATION.
ON THE UTILITY SIDE, THE REVENUE SOURCE COMES STRICTLY FROM UTILITY FEES IT IS USED FOR AND TO MAINTAIN THE WATER AND SEWER SERVICE FOR OUR RESIDENTS AND COMMERCIAL PROPERTIES, AS WELL AS TO MAINTAIN EQUIPMENT AND PROVIDE GARBAGE SERVICE.
I WANNA TAKE THIS MOMENT TO REMIND EVERYBODY THAT MEADOWS PLACE IS A FULL SERVICE CITY.
WE DO NOT HAVE AN HOA, WE DO NOT HAVE A MUD.
AND JUST TO REVIEW, UH, WHAT I'VE GOT UP HERE ON THE SLIDE IS A TIMELINE OF ALL THE ACTIVITY THAT IS TAKEN PLACE UP UNTIL THIS DATE, BEGINNING IN MAY AND JUNE WHEN THE DEPARTMENT CHAIRS MET WITH, UM, NICK AND MYSELF.
AND WE REVIEWED LAST YEAR'S BUDGET AND LOOKED FORWARD TO NEXT YEAR'S BUDGET TO SEE WHAT ADJUSTMENTS NEEDED TO BE MADE, UH, IN PREPARATION.
OUR FIRST WORKSHOP WITH CITY COUNCIL WAS JUNE 19TH.
AFTER THAT, WE CONTINUED TO REVIEW THE BUDGET ALONG WITH THE NEW MAYOR.
AND JULY 17TH, WE HAD A SECOND WORKSHOP AFTER THAT, UH, THE CIP WAS ADOPTED BY COUNCIL AT A COUNCIL MEETING ON JULY 23RD.
THEY ALSO SET THE DATE FOR FUTURE PUBLIC HEARINGS.
WE ALSO GOT, WE IS WHEN WE GOT INFORMATION FROM THE COUNTY ON PROPERTY APPRAISAL VALUES AS WELL AS OUR TAX RATE.
UM, CALCULATIONS, UM, UH, MOVING FORWARD.
AUGUST 13TH IS WHEN CITY COUNCIL MET LAST WEEK, AND, UM, SET THE MAXIMUM PROPOSED TAX RATE.
AND THEN THERE WERE SOME PUBLIC HEARING NOTICES ON THE WEBSITE, AS WELL AS IN NEWSLETTERS.
AND WE'RE HERE TODAY ON AUGUST 20TH, EVERYTHING HIGHLIGHTED OUR BASICALLY MEETINGS WHERE CITY COUNCIL, UM, WAS PRESENT AND THE PUBLIC WAS INVITED TO ATTEND.
UM, I WOULD LIKE TO TAKE THIS MOMENT TO NOTE THAT A LOT OF WORK IS DONE NECESSARILY WITH ONLY PRELIMINARY NUMBERS.
WE DO NOT GET FINAL NUMBERS FROM THE COUNTY UNTIL THE END OF JULY, EARLY AUGUST.
UM, AND ALL PUBLIC MEETINGS, WE, WE REALLY ENCOURAGE THE PUBLIC TO BE THERE.
THIS IS AN OPEN PROCESS AND WE WANT YOUR INPUT.
OKAY, I WANT TO JUST HIGHLIGHT THE ON THE GENERAL OPERATIONS, OUR REVENUE SOURCES.
UM, BY FAR, UH, YOU CAN TELL THAT PROPERTY TAX ON THE LEFT HAND SIDE IS OUR DOMINANT REVENUE SOURCE.
WHAT WE'RE LOOKING AT IN THAT CHART IS SIX YEARS WORTH OF DATA.
UM, SO PROPERTY TAX IS THE PRIMARY SOURCE.
SALES TAX, FRANCHISE, FINES AND FORFEITURES PARK RENTALS ARE ALL VERY MINOR IN COMPARISON.
AND YOU CAN TELL THEY'RE PRETTY STAGNANT, ESPECIALLY SALES TAX.
THE LAST THREE YEARS IS KIND OF RUNNING PRETTY FLAT, AS ARE ALL THE OTHER AREAS.
AND FROM AN EXPENDITURE SIDE, THIS IS THE PIE CHART KIND OF SHOWING THE BREAKDOWN BETWEEN THE DEPARTMENTS AS WELL AS THE SALARIES, COMPENSATION.
UM, THE TWO BIGGEST PIECES OF THE PIE ARE FOR SALARY AND BENEFITS
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BETWEEN ACROSS THE CITY.THAT ACCOUNTS FOR ABOUT 65% OF THE BUDGET.
SO, UM, ANY CHANGES IN SALARIES AFFECTS THE BUDGET PRETTY TREMENDOUSLY.
UH, THE PROPOSED BUDGET THAT, UH, WE'RE HERE TO DISCUSS, UH, USES THE PROPERTY VALUES FROM THE END OF JULY.
THE CERTIFIED PROPERTY VALUES FROM THE CAD ALSO IS USING THE MAXIMUM PROPERTY TAX OF 0.8 8 4 2 0 7.
THAT WAS, UM, PROPOSED LAST WEEK.
IT DOES INCLUDE 250,000 FOR FUTURE INFRASTRUCTURE.
UM, AND IT ALSO ASSUMES THAT THERE'S GONNA BE 280,000 COMING FROM EDC.
IT DOES INCLUDE A 5% COST OF LIVING FOR A SALARY INCREASE FOR ALL CITY STAFF.
UH, IT IS MAINTAINING CURRENT SERVICE LEVELS TO THE RESIDENTS.
THERE ARE SOME INCREASES BUILT IN, UM, FOR FEES, BUT THOSE ARE FOR PARK RENTALS AND TENNIS COURT TENNIS CARDS, UH, IN THE BUDGET IS A DECREASE IN THE, UH, NEWSPAPER OR THE PUBLIC PRINTED NEWSLETTER THAT IS BEING MAILED OUT TO THE RESIDENTS FROM EVERY MONTH TO BE A QUARTERLY PUBLICATION.
UM, WE'RE INCREASING STREET REPAIR FROM 50,000 TO 75,000, WHICH DOESN'T SEEM LIKE A LOT, BUT IS IN THE BUDGET.
THERE IS NO CHANGE IN THE BUDGET FOR THE ROAD FEE, UM, FUNDING.
SO THAT REMAINS AT $10, UM, PER MONTH IS ABOUT 185,000 A YEAR.
AND OTHERWISE THERE ARE SOME OTHER SMALL CHANGES, BUT THEY'RE PRETTY MINIMAL ACROSS THE BOARD.
UM, SO THIS IS WHAT IS IN THE PROPOSED BUDGET.
I SAID WE HAVE 250,000 FOR INFRASTRUCTURE, FOR FUTURE INFRASTRUCTURE.
WHAT IS NOT IN THE BUDGET ARE ITEMS THAT WERE IN THE CAPITAL IMPROVEMENT PRO, UM, PROPOSAL.
WHAT IS SHOWING ON THIS GRAPH ARE ITEMS THAT ARE UNFUNDED FOR THE NEXT 12 YEARS.
UM, THE TWO BIG BARS ARE FOR ROAD BILLS.
BASICALLY DORRANCE PHASE THREE AND FOUR.
AND WE, THEY'VE BEEN SPLIT BY ABOUT FIVE YEARS.
WE'RE HOPING TO RAISE ABOUT 2 MILLION FOR EACH OF THOSE PROJECTS.
AND IN BETWEEN OUR OTHER UNFUNDED PROJECTS LIKE POOL PLASTER, THE LAKE EROSION NEEDS TO BE TAKEN CARE OF.
UM, NEEDS TO MAKE SOME UPGRADES ON THE PD FACILITY, UM, DRAINAGE, OUTFALLS, SOUND WALLS, PARK EQUIPMENT.
SO FOR THE NEXT 12 YEARS, IF YOU WERE TO AVERAGE IT OUT, IT IS ABOUT $755,000 THAT WE DO NOT HAVE FUNDED.
I WANNA TAKE THIS MOMENT TO, TO NOTICE THAT THESE ARE NEEDS NOT ONCE.
UM, THIS SLIDE RIGHT HERE, THE CIP SUPPORTS OUR GENERAL FUND, OUR CAPITAL IMPROVEMENT PROJECTS.
THIS IS SEPARATE FROM THE UTILITY FUND, THE UTIL THE CAPITAL IMPROVEMENT PROJECTS, THE UTILITY FUND, CAPITAL IMPROVEMENT PROJECTS, WHICH IS SUPPORTED THROUGH THE UTILITY BUDGET, WHICH ANNA MARIE MARIA IS ABOUT TO TALK ABOUT.
OKAY, SO THE NEXT SLIDE IS KIND OF LOOKING AT THE POSSIBLE TAX RATES AND BUDGET BALANCES.
SO, UH, WHAT WE HAVE UP HERE ARE IS THE CURRENT TAX RATE OF 0.79961, AS WELL AS THE TAX RATES FROM THE CAD, THE NO NEW REVENUE TAX RATE OF 0.7 9 0 3 0 8, THE VOTER APPROVAL TAX RATE 0.8 3 8 7 2 2.
AND THE PROPOSED TAX RATE, WHICH IS ACTUALLY THE DE MINIMIS TAX RATE AT 0.8 8 4 2 0 7 IN THE RIGHT HAND COLUMN IS THE PROPOSED BUDGET BALANCE.
IF ANY ONE OF THESE TAX RATES WAS, UM, ACCEPTED, ADOPTED, THIS IS IN ADDITION TO WHAT I JUST SAID WAS IN THE PROPOSED BUDGET.
SO FOR THE CURRENT TAX RATE, WE WOULD HAVE A BUDGET BALANCE OF $5,317 ON TOP OF THE 250,000 THAT ALREADY IS IN THE BUDGET.
WE GO DOWN TO THE, THE PROPOSED TAX RATE.
THERE COULD BE ANOTHER $446,000 THAT COULD GO TOWARDS FUTURE INFRASTRUCTURE PROJECTS.
I JUST WANNA REMIND EVERYBODY THAT THIS IS THE PROPOSED TAX RATE, CORRECT? IT IS NOT THE ADOPTED TAX RATE, CORRECT.
IT HOOVES COUNSEL TO PROPOSE THE HIGHEST
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TAX RATE.SO ALL OPTIONS ARE STILL ON THE TABLE.
AND ANY ONE OF ANY, WELL, THREE OF THESE TAX RATES SUPPORT THE, UH, THE BUDGET AS IT STANDS RIGHT NOW WITHOUT, SO, UH, WE, YEAH.
UM, UH, WHAT DOES THAT MEAN FOR THE HOMEOWNER? SO THE, RIGHT NOW, THE CAT IS TELLING US THAT THE AVERAGE ASSESSED HOMESTEAD IN CITY OF MEADOW, UH, MEADOWS PLACE IS $286,894.
IF WE LOOK AT THOSE TAX RATES AND WHAT THAT MEANS FOR POTENTIAL TAXES, UM, WE CAN, WE CAN LOOK AT, UM, IF YOU HAVE NO EXEMPTIONS, IF YOU HAVE A HOMESTEAD EXEMPTION OF 20% OF THE VALUE A HOMESTEAD WITH THE OVER A, UM, OVER AGE 65, WHICH IS 30,000, UM, 80% OF THE HOMES IN MEADOWS PLACE HAVE A HOMESTEAD EXEMPTION.
ANOTHER, UH, IN ADDITION, 35% OF THE HOMES ALSO HAVE THE OVER 65 EXEMPTION.
UM, I'M GONNA LOOK AT JUST THAT MIDDLE LINE, THE ONE HIGHLIGHTED IN YELLOW.
THAT'S THE HOMESTEAD EXEMPTION.
SINCE THAT AFFECTS MOST PEOPLE.
WE GO ALL THE WAY OVER TO THE RIGHT HAND SECTION.
UH, THE YEARLY INCREASE FOR A HOMEOWNER COMPARING THE CURRENT TAX RATE OF 0.79961, AND THE VAR IS $90.
IF YOU GO FROM CURRENT TO THE PROPOSED, WHICH WOULD BE THE MAXIMUM, IT'S $194.
SO ANYTHING IN BETWEEN WOULD BE WHAT YOU WOULD BE LOOKING AT.
AND THEN I'M JUST GONNA, I JUST HAVE A COUPLE OF SLIDES ON THE UTILITY PROPOSED BUDGET.
UH, THE UTILITY PROPOSED BUDGET THAT'S IN THE PACKET, UH, CONTINUES TO IMPLEMENT THE 10%, UM, IN RATE INCREASE FOR WATER AND SEWER THAT WAS STARTED THREE YEARS AGO.
IT ALSO INCLUDES A INCREASE TO THE GARBAGE FEE OF $1.
AND IT CONTINUES TO COLLECT THE UTILITY INFRASTRUCTURE FEE OF $10 A MONTH, WHICH AMOUNTS TO THE 189,000 A YEAR.
AND THAT'S TO BUILD A RESERVE FOR FUTURE EXPENDITURES.
UM, THIS IS THE CHART THAT WE USED THREE YEARS AGO TO SAY WE NEEDED TO START INCREASING UTILITY RATES.
UM, I DON'T KNOW IF I CAN DO THIS, BUT THE YELLOW LINE GOING DOWN IS, UM, WHERE WE WOULD BE IF WE DID NOT HAVE, UM, UH, RATE INCREASES, WE WOULD CONTINUE TO DIG OURSELVES DEEPER AND DEEPER INTO A HOLE SO THAT THE YELLOW IS GOING DOWN.
UM, THE RED, THE RED LINE VERTICAL LINE GOING UP IS WHERE WE STARTED.
WE WERE ALREADY IN THE HOLE AND WEEPING, KIND OF CLIMBING OUT OF THE HOLE.
SO WHERE THE YELLOW ARROW IS AND THE GREEN ARROW GOING UP IS THE, OUR PROJECTED REVENUE EVERY YEAR, UH, WE ARE PROJECTING WITH THAT YELLOW ARROW TO BE JUST ABOVE 50,000 IN THE GREEN WITH THE BUDGET.
AND THAT SEEMS TO BE ON TARGET FOR THIS SLIDE.
UM, UM, AND THIS IS JUST A REMINDER THAT OUR INFRASTRUCTURE IS VERY OLD.
UM, THIS FUND IS SUPPOSED TO STAND ON ITS OWN WITHOUT HELP FROM THE GENERAL FUND.
AND ALL MAINTENANCE AND REPAIRS ARE INCREDIBLY EXPENSIVE ON THIS EQUIPMENT.
AND SO SIMILAR SLIDE TO ON THE GENERAL OPERATIONS, THE UTILITY CAPITAL IMPROVEMENT PROJECTS THAT ARE CURRENTLY UNFUNDED.
UM, THE BARS KIND OF SHOW WHAT'S UNFUNDED.
SO YOU CAN SEE WE DON'T HAVE ANYTHING IN THE FIRST FEW YEARS, 25 THROUGH 28.
AND THAT'S BECAUSE WE'RE IN THE MIDDLE OF SOME PRETTY BIG PROJECTS.
THE WASTEWATER TREATMENT PLANT, WE'RE NOT PLANNING ON DOING ANYTHING FOR A FEW YEARS, UH, IN THOSE YEARS.
THAT'S WHEN THAT $189,000 WILL START TO BUILD BY THE END OF 2028 AND SHOULD HAVE APPROXIMATELY $800,000 SAVED FOR PROJECTS.
BUT AS YOU CAN TELL, UH, RUNNING OUT THE AVERAGE FOR THE NEXT 12 YEARS, WE NEED ABOUT $813,000 A YEAR FOR, FOR PER YEAR FOR THESE PROJECTS.
AND THE PROJECTS BEING REHAB, THE SEWER, SEWER LINES, AND CONTINUED IMPROVEMENTS AT THE WATER TREATMENT PLANT AND STREET WATER LINE REPLACEMENT AND WATER STORAGE, TANK REHAB AND WATER WELLS REHAB.
SO VERY EXPENSIVE PROJECTS THERE.
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FOR UTILITY, UM, REVENUE OVER EXPENDITURES IS AT ABOUT 55,000 IN, IN THE PROPOSED BUDGET.THANK YOU SO MUCH, ANNA MARIE.
WE ARE NOW GONNA TAKE PUBLIC COMMENTS ON THE PROPOSED BUDGET AS POSTED ON THE AGENDA.
FIRST QUESTION I HAVE, I'M RE RE REMEMBER, STATE YOUR NAME, STATE YOUR ADDRESS FOR THE RECORD, AND I HAVE A THREE MINUTE TIMER ON.
WOULD YOU LIKE ME TO INDICATE LIKE IT, IS IT THREE MINUTE TIMER ON PUBLIC HEARING? ON PUBLIC HEARING? THERE IS NO TIME ON THERE.
I THINK WE'RE, I THINK WE'RE OKAY.
FIRST OF ALL, WHAT IS A TAXPAYER APPROVED RATE? YOU SAID ON ONE ONE SLIDE, THE, THE TAX RATE WAS TAXPAYER APPROVED.
WHEN DID WE EVER APPROVE THAT? UM, I THOUGHT IT WAS NO NEW REVENUE.
I DON'T REMEMBER ME APPROVING ANYTHING.
SO
THERE'S WHAT'S CALLED THE NO NEW REVENUE RATE.
AND THAT RATE IS SET THAT BASICALLY GENERATES MONEY, UH, TO WHERE YOU COLLECT THE EXACT SAME AMOUNT OF TAX REVENUE IN BOTH YEARS.
THEY CALLED OUT THE NO NEW REVENUE RATE.
THEN THERE'S SOMETHING CALLED THE VOTER APPROVAL TAX RATE.
THAT RATE IS SET AT 3.5% ABOVE THAT NO NEW REVENUE RATE WE JUST TALKED ABOUT.
SO BASICALLY THE EXACT SAME AMOUNT OF MONEY WE COLLECTED LAST YEAR, PLUS THREE POINT A HALF PERCENT IS CALLED THE VOTER APPROVAL RATE.
UM, THE 8% DOESN'T APPLY TO US.
IT, IT, IT DOESN'T MEAN THE VOTERS ACTUALLY VOTE ON IT.
UM, SO LET'S SAY YOUR VALUATIONS GO UP TREMENDOUSLY.
YOU CAN ACTUALLY LOWER THE TAX RATE AND YOU STILL HAVE TO SAY, WE'RE INCREASING TAXES BECAUSE YOU'RE INCREASING THE REVENUE.
WELL, YOU'RE INCREASING THE TAXES BECAUSE THE, UH, BECAUSE VALUATIONS HAVE GONE UP.
SO IF YOU KEPT THE RATE THE SAME, BUT VALUES WENT UP YES.
THEN YOU'RE COLLECTING MORE MONEY THIS YEAR OVER LAST YEAR.
TECHNICALLY THAT'S, THAT'S ALWAYS BEEN THAT WAY.
BUT NOW THEY'VE CAPPED IT AT 3.5%.
SO THAT'S WHY THEY SAID THAT'S THE, THE, THE, THE, THE LEGISLATURE SAID THREE AND A HALF PERCENT IS WHAT WE ARE GOING TO ALLOW.
IT DOESN'T REQUIRE, DOESN'T REQUIRE REAL VOTER APPROVAL.
IT'S SAYING, HEY, IF YOU'RE ASSESSMENTS GO UP PRETTY HIGH, YOU'RE GONNA HAVE TO STOP AT 3.5% 'CAUSE THAT'S ALL WE'RE GONNA ALLOW YOU TO SAY.
LET'S SEE, LET'S SEE IF I CAN GET THIS RIGHT.
SO IF YOU GO AT 3.4%, THE RESIDENTS HAVE NO RECOURSE.
IF YOU GO AT 5%, WHICH IS BETWEEN THREE AND A HALF AND EIGHT, AND YOU'RE OVER 30,000 PEOPLE IN POPULATION, THEN THE PEOPLE CAN PETITION YOU TO LOWER YOUR TAX RATE.
BUT IF YOU'RE UNDER 30,000, IT DOESN'T APPLY.
YOU CAN STILL PETITION, EVEN IF YOU'RE A SMALLER CITY, IF IT GOES ABOVE THE VAR.
WHAT SMALLER CITIES CAN TAKE ADVANTAGE OF IS WHAT'S CALLED THE DI MINIMIS RATE.
THE DI MINIMIS RATE ALLOWS A SMALLER CITY THAT'S A CITY UNDER 30,000 POPULATION SHOULD GENERATE AN ADDITIONAL $500,000 OVER YOUR PREVIOUS YEAR'S LEVY.
UM, AND IF YOU DO THAT, THEN YOU, YOU CAN DO IT AND ONLY BE SUBJECT TO A PETITION OF THE RESIDENTS.
IF A PETITION DOESN'T HAPPEN, THEN THAT RATE GOES INTO EFFECT.
WELL, WE'RE OVER 30,000 PEOPLE.
NO, WE'RE NOT, WE'RE UNDER 30.
I'VE BEEN WORKING TOO HARD TODAY.
SO BASICALLY, ANY, ANY RATE BETWEEN THAT VAR, THE VOTER APPROVAL RATE, THAT THREE AND A HALF YES.
AND THE DE MINIMIS RATE, WHICH GENERATES 500,000 MORE THIS YEAR OVER LAST YEAR.
ANYTHING BETWEEN THAT THE RESIDENTS WOULD HAVE TO PETITION FOR AN ELECTION, WHICH MEANS THEY'D HAVE TO GO OUT AND GET SIGNATURES AND THE CITY SECRETARY WOULD HAVE TO CERTIFY IT AND THAT KIND OF THING.
IF, IF THAT PETITION WAS SUCCESSFUL, THEN THE CITY COUNCIL WOULD CALL FOR AN ELECTION ON A ROLLBACK.
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TERRY, TERRY, WHEN YOU, WHEN IT'S YOUR TURN, YOU CAN COME UP.SO NOW, IF IT WAS, IF WE WERE OVER 30,000 PEOPLE AND WE WENT ABOVE THE THREE AND A HALF PERCENT, THEN WE AUTOMATICALLY HAVE TO HAVE AN ELECTION.
BUT, BUT THAT DOESN'T APPLY BECAUSE WE'RE NOT OVER 30,000.
SO IN MEADOW'S PLACE, WHEN WOULD, WHEN WOULD WE HAVE TO HAVE AN ELECTION? IF YOU, WE, WE WOULD BE FORCED TO DO AN ELECTION IF WE WENT ABOVE THE DE MINIMUS TAX RATE.
THE DE DE MINIMUS, THE, THE 500,000, THE BOTTOM ONE.
OH, IF WE HAD, WE WENT TO 0.9 OR 1%, WE WOULD HAVE TO HAVE AN A AN ELECTION.
TERRY, THE, THE ATTORNEYS DON'T AGREE WITH YOU.
I DON'T, THE ATTORNEYS DON'T AGREE WITH WHAT YOU SAY ON THIS TAX RATE.
YEAH, WE, WE JUST, WE, WE, JUST TO CLARIFY, WE ARGUED OVER THIS TIME AND TIME AGAIN, I KNOW WHAT WE CAN AND CAN'T AND THE ATTORNEY ALL, WE'RE GONNA GO WITH OUR ATTORNEY.
I'LL, I'LL, I'LL GIVE YOU, MIKE, DID YOU HAVE ANY ADDITIONAL COMMENTS OR QUESTIONS? YEAH.
SO IN MEADOW'S PLACE, WHAT WOULD BE, UH, UH, THE TEXT RATE WHERE, WHERE YOU WOULD HAVE TO CALL AN ELECTION? UH, GO.
CAN YOU GO BACK TO THAT SCREEN? ANNA MARIA, THE ONE THAT SHOWS THE ACTUAL RATES.
IF, IF WE WENT TO 0.885, WE WOULD BE FORCED TO HAVE AN ELECTION.
WE WOULD AUTOMATICALLY HAVE TO CALL IT.
AND IF THERE IS A PETITION, BECAUSE WE'RE GONNA, WE LOOKED AT 0.8.
LET'S SAY WE SAY 0.87 AND SOMEBODY SAYS, I THINK THAT'S TOO MUCH.
IF THERE'S A PETITION THAT GENERATES ENOUGH SIGNATURES AND WE HAVE TO CALL AN ELECTION, THAT ELECTION HAPPENS AND PEOPLE VOTE NOT TO HAVE THE TAX INCREASE.
WHAT IS THE PROPOSED TAX RATE THAT, THAT, THAT, THAT YOU'RE PROPOSING RIGHT NOW WITH THIS BUDGET TO FUND THE BUDGET? SO WE ADVERTISED 0.884.
JUST SO WE COULD HAVE A CONVERSATION.
WE CAN ADOPT THE CURRENT TAX RATE, WHICH IS 0.79961 AND WE'VE GOT A BALANCED BUDGET.
OH, WE CAN ADOPT THE VAR RATE AND THAT PUTS $200,000 ADDITIONAL INTO INFRASTRUCTURE.
OR WE CAN ADOPT THAT 0.884 AND PUT $450,000 INTO INFRASTRUCTURE.
THAT'S WHAT WE WANT TO HAVE THE CONVERSATION FOR.
BECAUSE THE OTHER OPTION IS, YOU KNOW, WE HAD SOME PEOPLE SAY INCREASE THE ROAD USE FEE FROM $10 TO $20 JUST TO SPEED THIS UP.
THAT RATE OF 0.884 IS AN EQUIVALENT OF GOING TO $30 A MONTH ON THE ROAD USE FEE.
WE WANT TO HAVE THE CONVERSATION, WE WANT THE FEEDBACK FROM THE CITIZENS.
I'VE HAD EXACTLY ONE PERSON EMAIL ME ABOUT THE RATE.
AND SHARON LEAL ACTUALLY TOOK THE TIME TO EMAIL US.
I PUT THIS OUT THERE ON FACEBOOK TO GENERATE DISCUSSION.
I HEAR FROM THE SAME 12 PEOPLE.
WELL, I'M HERE TONIGHT TO TELL YOU NOW, IF THE INFRASTRUCTURE THAT YOU'RE FUNDING OUT OF THE, OUT OF THE GENERAL REVENUE, I THOUGHT THE INFRASTRUCTURE FUND WAS FUNDING WAS COMING OUT OF SOME OTHER, SOME OTHER BUDGET.
SO THE INFRASTRUCTURE FUND PUTS IT INTO WHAT YOU CALL A, WE'LL CALL IT A LOCK LOCKBOX.
IT CAN ONLY BE USED ON INFRASTRUCTURE.
THIS MONEY GOES INTO THE GENERAL FUND.
THAT'S YOUR CURRENT COUNSEL WANTS TO USE THAT FOR INFRASTRUCTURE.
BUT IT'S A ANY LEGAL PURPOSE FUND.
SO YOUR FUTURE COUNSELS COULD REDIRECT THAT MONEY.
IF WE SELL BONDS, WE NEED TO GO TO A TAX RATE FOR $10 MILLION IN BONDS.
WE NEED A TAX RATE OF 0.94 AND YOU'RE LOCKED IN EVERY YEAR TO MAKE THAT PAYMENT.
YOU CANNOT REDUCE IT IN TOUGH TIMES.
AND THAT WOULD REQUIRE A VOTE OF THE CITIZENS TO HAVE A, TO PASS A BOND.
'CAUSE THEY'D HAVE TO PAY FOR IT.
AND, AND, AND THAT'S WHY, LIKE I SAID, WE WANNA HAVE A CONVERSATION.
DO YOU WANT GO DRIVE DOWN THE STREETS? DO YOU WANT YOUR STREET
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TO LOOK LIKE THE ONE YOU'VE GOT IN FRONT OF YOU RIGHT NOW? OR DO YOU WANT DORRANCE EAST OF KIRKWOOD? EAST OF KIRKWOOD? THE, THE, THE BRAND NEW PIECE.OH, WHAT DO YOU WANT? WELL, FOR ONE THING I WANT IS TO FUND THE ITEMS THAT THE CITIZENS USE EVERY DAY.
SIDEWALKS, STREETS, WATER, TOILETS, SEWER, STUFF LIKE THAT YOU CAN DO AWAY WITH THE NATURE CENTER BECAUSE ONLY LIKE 10.
I'VE SAID THIS BEFORE, AND I'LL SAY IT AGAIN, ONLY LESS THAN 10% OF THE RESIDENTS USE THAT NATURE CENTER.
WHY FUND SOMETHING THAT THE RESIDENTS DON'T USE.
AND I THINK YOU COULD, YOU COULD FUND $300,000 PROBABLY BY THE SALE OF THAT NATURE CENTER INTO THE INFRASTRUCTURE FUND.
SO THAT'S, THAT'S, UH, THAT'S MY OPINION.
THE, UH, SO THE TAX RATE THAT YOU'RE PROPOSING OR THE BUDGET THAT YOU'RE PROPOSING TONIGHT, TONIGHT WE GO THROUGH THE BUDGET.
IS THAT CORRECT? THIS IS BUDGET ONLY.
BUT IT AFFECTS WHAT WE DO ON THE TAX RATE.
YOU GOTTA HAVE THE TAX RATE TO FUND THIS THING, RIGHT? CORRECT.
AND GOING BACK TO WHAT THE MAYOR STARTED WITH, AND ANNE MARIA SAID THE, THE BUDGET THAT'S PROPOSED THAT WAS WORKED ON, ASSUMED THAT WE WOULD NOT HAVE A TAX INCREASE THAT WE WOULD KEEP THE CURRENT RATE.
SO WE'RE BALANCED AT OPERATIONALLY BALANCED AT THE CURRENT RATE OF 0.7996.
SO THAT'S, THAT'S THE BUDGET THAT'S IN FRONT OF US TO BASICALLY VOTE ON TONIGHT.
AND THAT'S, THAT PUTS SOME MONEY TOWARDS INFRASTRUCTURE, BUT NOT A LOT.
IT PUTS 250,000 TOWARDS INFRASTRUCTURE THAT WE, WE HAVEN'T HAD IN THERE IN THE PAST.
IT DOES INCREASE THE REVENUES, IT INCREASES THE, SO THAT, THAT 5,300 THAT YOU'RE LOOKING AT ON THE SCREEN BEHIND ME IS, UH, THE BUDGET THAT SHE PROPOSED AND THE TAX RATE THAT WE CURRENTLY HAVE.
WHAT WE'RE PROPOSING, BECAUSE WE HAD TO GIVE THE MAXIMUM THAT WE WOULD USE LAST, LAST WEEK, WE HAD TO SET WHERE WE, WE WON'T GO ABOVE THIS.
WE JUST CAN'T GO ABOVE IT AT THIS POINT.
WE'VE COMMITTED TO THAT AS OUR MAXIMUM RATE.
SO NEXT WEEK ON MONDAY, WE'RE GONNA HAVE A SIMILAR PUBLIC HEARING WHERE WE'RE GONNA TALK ABOUT WHERE WE LAND BETWEEN 0.7996 AND 0.884.
BUT THE BUDGET TONIGHT BALANCES AT 0.7996.
SO THE ADDITIONAL REVENUES, IF YOU GO ABOVE THE 7, 9, 9 6 GOES FOR, YOU'RE SAYING THAT GOES FOR INFRASTRUCTURE, CORRECT? ALL OF IT.
THAT'S, THAT'S WHAT THIS COUNCIL WANTS TO DO.
WE CAN ONLY COMMIT TO THE YEARS THAT WE'RE WORKING IN.
UH, SO WHAT WOULD HAPPEN IF YOU DID A LOT OF, UH, CUTTING IN THE, IN THE CURRENT BUDGET OR SOMETHING LIKE THAT, YOU COULD FUND MORE TOWARDS THE INFRASTRUCTURE? CORRECT? YEP.
SO THERE ARE, THERE ARE PEOPLE THAT SAY, I DON'T GO TO THE CONCERTS IN THE PARK.
YOU SHOULD DO AWAY WITH THOSE.
GO WITH WHAT? WE'VE GOT THE CONCERTS IN THE PARK.
SO YOU, THEY SAY, I DON'T GO TO THOSE.
SO THE CITY SHOULDN'T PAY FOR THOSE.
WE'VE GOT PEOPLE THAT SAY, MY KIDS ARE GROWN, WE SHOULDN'T, THE, THE POOL SHOULD BE CLOSED THERE.
YOU KNOW, SO WE'VE, WE'VE GOT A DIFFERENT, YOU KNOW, WE'VE GOT THINGS WE HAVE TO DO.
YOU WANT YOUR TOILET TO FLUSH.
I WANT MY, AND I WANT THE DRAINS TO DRAIN.
SO THE QUESTION THEN IS WHAT IS THE PROPER BALANCE? UH, WE HAD SOMEBODY SAY THAT, YOU KNOW, WE SHOULD DO AWAY WITH THE LANDSCAPING ON KIRKWOOD.
WE CAN GO IN AND TEAR OUT ALL THAT LANDSCAPING.
WE CAN TURN THE SPRINKLERS OFF.
IS THAT WHAT WE WANT TO DO? WELL, WHAT ARE YOU IN A BUDGET CRISIS AT HOME OR IN A BUSINESS OR SOMETHING LIKE THAT? YOU LOOK AT EVERYTHING.
AND YOU LOOK AT ALL THE THINGS THAT WE CAN DO TO SAVE MONEY AND YOU, AND YOU, AND YOU AWARD THOSE PEOPLE THAT DO WELL, YOU KNOW, LIKE THE POLICE CHIEF, YOU KNOW, HE DESERVES A RAISE.
I DON'T CARE WHAT THE BUDGET IS.
BUT ANYWAY, SO EVERY YEAR I'VE ONLY GOT TWO MORE STATEMENTS TO MAKE AND I'LL BE THROUGH EVERY YEAR SINCE WE HAVE BECOME A CITY, THE TAX RATE HAS INCREASED.
AND WHAT, WHAT I MEAN BY THAT IS THE AMOUNT OF TAXES THAT I PAY, AND IT'S COMPOUNDED, THE TAX RATE THAT WE PAID LAST YEAR
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WAS AROUND FOUR OR 5% EXTRA OR SOMETHING LIKE THAT.WELL NOW YOU'RE ASKING FOR ANOTHER FOUR OR 5% ON TOP OF THAT.
WHEN WE FIRST MOVED OUT HERE, I THINK MY TAXES WERE EITHER SEVEN OR $800 A YEAR.
SO, YOU KNOW, I THINK YOU NEED TO, YOU NEED TO PUT EMPHASIS ON WHAT WE NEED TO AWAY WITH THE, SOME OF THE AMENITIES AND GO FROM THERE.
WELL, I WILL SAY IN THIS BUDGET, UH, THERE ARE CHANGES SO THAT SOME OF THOSE AMENITIES BECOME MORE SELF-FUNDING.
THERE'S INCREASES IN SOME OF THE FEES THAT WE'RE CHARGING FOR TENNIS COURTS, FOR SWIMMING FOR OTHER THINGS.
SO, UH, NATURE CENTER, THERE'S, THERE IS SOME REVENUE OFFSETS FOR SOME OF THOSE EXPENSES.
UH, SO WE HAVE LOOKED AT SOME OF THOSE FEES.
UH, BUT I THINK AS ANNEMARIE POINTED OUT, ABOUT 67% OF OUR BUDGET GOES TO SALARIES AND WE HAVE GOOD, GOOD PEOPLE.
UH, THIS PAST YEAR, CHIEF CAME TO US AND SAID, HEY, OUR STARTING SALARY FOR POLICE OFFICERS IS THIS, ALL THE SURROUNDING CITIES ARE SIX TO $7,000 HIGHER.
WE'RE GONNA LOSE ALL OUR PEOPLE IF WE DON'T DO SOMETHING.
WE'VE MADE A DECISION AT THAT POINT TO, TO, UH, RAISE THE SALARIES.
AND PART OF THAT WAS ALREADY PLANNED.
BUT THOSE ARE THE KIND OF THINGS THAT IF WE WANT TO KEEP GOOD PEOPLE, UH, IN THE CITY, I UNDERSTAND OUR, OUR STAFF IS THERE.
AND THE OTHER THING IS THAT THE INFLATION THAT THE CITY'S SEEN IS THE SAME INFLATION THAT ALL OF US ARE SEEING.
THE COST OF GAS, THE COST OF MATERIALS, THE COST OF A PUMP, THE COST OF A WATER MAIN BREAK, UH, JUST, OH, I'M GLAD YOU BROUGHT UP A WATER MAIN BREAK.
LAST YEAR, THE, THE, UH, COST FOR REPAIRING THE WATER MAINS OR WATER LEAKS WAS OVER $400,000.
NOW, AND THAT'S NOT TO EVEN COUNT THAT THE THOUSANDS OF GALLONS OF WATER THAT WAS WASTED GOING DOWN THE DRAIN WATER IS A NATURAL RESOURCE.
SO WHERE IN THE BUDGET DO YOU HAVE THAT THIS YEAR ABOUT REPAIRING THE WATER MAINS? WHAT I LIKE TO DO IS PROPOSE THIS.
YOU GO BACK AND YOU LOOK AT THE WATER MAINS THAT BREAK EASILY.
YOU'VE GOT THE DATA, YOU KNOW WHERE THOSE, THOSE WATER LINES ARE.
GO BACK AND REPAIR THOSE LINES AND THEN PLOW THE MONEY THAT THAT, THAT THOSE WATER LINES WOULD BE BREAKING BACK INTO REPAIRING OTHER LINES OR SOMETHING LIKE THAT.
BUT THOSE WATER LINES ARE OVER 50 YEARS OLD.
AND I REPLACED ALL THE WATER LINES AT MY HOUSE AND I WOULD BE, I WAS SURPRISED AT THE SEA, ALL THE KUNK THAT WAS INSIDE THERE.
UH, SO WHERE DID, WHERE, WHAT'S IN THE BUDGET THIS YEAR FOR, FOR REPLACING THOSE? WELL, WHAT'S IN THE BUDGET IS THE 450,000 TO REPAIR THE BRAKES.
ITS, IT'S STILL IN THE 24 25 BUDGET.
AND, AND I DON'T KNOW THE EXACT NUMBER.
WE'D HAVE TO HAVE TO FIND IT IN HERE, BUT IT IS IN A, IN A GOOD YEAR, WE SAVE A LITTLE MONEY IN A BAD YEAR, WE SPEND EXTRA.
UM, THAT'S WHY WE'RE INCREASING THE, THE RATES FOR THE, OR THE UTILITY FEES.
10% A YEAR IS TO START BUILDING UP THAT FUND SO WE CAN DO IT.
UH, WE HAD TWO OR THREE YEARS WHERE WE RAN IN THE RED.
AND WHEN YOU RUN IN THE RED, YOU CAN'T REPLACE.
WELL, YOU GOTTA DO, YOU, YOU NEED TO DO SOMETHING ABOUT THAT.
WELL, WE, I'VE ONLY GOT, WE'RE WE'RE TRYING TO, BUT EVERY TIME THAT WE GO TO INCREASE FEES OR WE GO TO INCREASE TAXES, THE OUTCRY COMES.
WELL, YOU NEED TO PUT YOUR EMPHASIS ON THE CORRECT THINGS THAT THE PEOPLE USE EVERY DAY.
WOULD ANYBODY ELSE LIKE TO COME TO THE PODIUM? TERRY HENLEY 1 2, 2 0 3 AUSTIN DRIVE.
I'VE BEEN INVOLVED IN THIS, UH, BUDGETS AND THE TAX RATES AND WHAT THEY DID IN 2019 AND MANY, MANY CONVERSATIONS WITH BILL LONGLEY.
AND HE IS THE EXPERT WHEN IT COMES TO THE TAX RATES AND WHAT YOU CAN AND CAN'T DO.
AND MOST OF THE ATTORNEYS HAVE COME TO AUSTIN AND GOT THEIR TRAINING FROM BILL LONGLEY.
[00:35:02]
AND AGAIN, WHAT I'M GETTING READY TO SAY, AND I'LL BACK IT UP WITH BILL LONGLEY, AND CHARLIE EVEN CALLED ME A COUPLE YEARS AGO AND SAID, HENLEY, YOU KNOW, YOU'RE RIGHT.A CITY OF LESS THAN 30,000 PEOPLE AND REVENUE AVALOR TAX REVENUE DOES NOT INCREASE MORE THAN $500,000.
WE HAVE A RATE THAT WE CAN GO UP TO 8% WITHOUT, UH, TRIGGERING A POSSIBLE, UH, PETITION TO, UH, HAVE THE TAX RATE, UH, GO BEFORE THE VOTERS.
SO AS A COUNCIL, WE CAN GO UP TO 8% ABOVE THE PREVIOUS YEAR, AS LONG AS IT DOES NOT INC INCREASE BY $500,000 AND NOTHING HAPPENS.
IF WE EXCEED THE 8% RATE, THEN A PETITION COULD BE SET FORTH TO REQUIRE AN ELECTION TO SET THE BUDGET.
AND USUALLY WHEN THAT HAPPENS, THE BUDGET WILL REMAIN UNCHANGED.
AND AGAIN, BILL LONGLEY AND I HAVE HAD MANY DISCUSSIONS ON THAT, AND Y'ALL TALK ABOUT ALL THIS, UH, OTHER, WHAT'S IT CALLED, UH, DE MINIMUS AND ALL THE OTHER JUNK.
IT CERTAINLY APPLIES TO ALL COUNTIES AND ALL CITIES THAT HAVE REVENUE THAT INCREASE AVALOR TAX INCREASE MORE THAN $500,000.
BUT FROM OUR STANDPOINT, AND WHAT WE REALLY HAVE TO ADHERE TO IS, UH, AS LONG AS WE DON'T GO ABOVE 8%, AS LONG AS IT DOESN'T INCREASE MORE THAN $500,000, THEN WE'RE FINE.
ANYTHING ELSE IS, AND, AND, AND ATTORNEYS, UH, ARGUE AND THEY WILL CHARGE YOU THE TWO OR $300 OR WHAT THEY CHARGE YOU AN HOUR.
AND I GUARANTEE YOU WITH BILL LONGLEY AND TML, WHAT IS SAID IS A FACT FOR CITIES OF OUR SIZE.
NOW, REGARDLESS OF WHAT Y'ALL DO, AND YOU KNOW, ALL THE, WHAT THE ATTORNEYS SAY, AGAIN, THOSE ATTORNEYS HAVE GONE TO TML AND GOT THEIR TRAINING FROM THE, UH, USUALLY THE EXPERTS AT TML AND INTERPRETED ALL THESE LAWS.
SO I, WITH THAT BEING SAID, I WANT TO GO TO COPY OF THE BUDGET YOU JUST GAVE ME.
AND YOU'RE SHOWING THE ADVER ALARM TAX INCREASE THIS NEXT YEAR OF $687,000.
400, WHATEVER'S UP THERE ON THE SCREENS IS NOT UP THERE.
NOW WHERE DOES THE $687,000, THAT'S ALMOST A 20% INCREASE IN AVALOR TAX REVENUES, WHICH IS TOTALLY, COMPLETELY UNACCEPTABLE.
NOW, ANYTHING ABOVE 8% IS A PROBLEM.
I'VE BEEN UP HERE MORE THAN ONCE.
AND KURT WAS AT THE LAST MEETING TWO OR THREE YEARS AGO.
REMEMBER WHAT IT WAS, Y'ALL WERE AT 16 OR 17%.
AND THE CURRENT RATE THAT WAS AT, UH, GETTING MY SHEET OUT HERE PROPOSING TO GO TO, UM, THE 8.84 BRINGS IN ANOTHER, ACCORDING TO LAST, UH, WEEK'S MEETING OVER $500,000 AND IT'S SOMEWHERE BETWEEN 11 AND 12% INCREASE OVER THE PREVIOUS YEAR WAS JUST TOTAL AND COMPLETELY UNACCEPTABLE.
NOW I UNDERSTAND UTILITIES AND YOUR WATER AND SEWER AND ALL THAT STUFF HAS HAD SOME, YOU KNOW, SOME LOSSES.
WE'VE, UH, EXCEEDED WHAT, UH, REVENUES WE'VE BOUGHT IN THE UTILITIES NEED TO BE ON A STANDALONE BASIS.
IF WE GOTTA INCREASE REVENUE, UH, FEES BY 10% TO MAKE SURE WE'VE GOT SOME RESERVES TO ANY ANTICIPATION AND ANTICIPATED EXPENDITURES AND UTILITIES, YOU KNOW, WATER AND WASTE WASTEWATER AND ALL THAT STUFF, THEN THAT WE NEED TO HAVE A RESERVE THERE.
AND WHATEVER IT TAKES TO BUILD THAT RESERVE, THAT'S WHERE THE FEES NEED TO BE.
MAYBE THEY NEED TO BE INCREASED 20%, BUT WE DON'T NEED TO USE AVALOR TAX OUT OF M AND O TO, UH, MAKE UP THE DIFFERENCE IN, UH, IN OUR UTILITY COST.
NOW, IS THERE A ORDINANCE THAT YOU HAVE THAT SAYS X AMOUNT OF DOLLARS,
[00:40:01]
250 OR A PERCENT GOES INTO INFRASTRUCTURE FUNDS? DO WE HAVE AN ORDINANCE? WE JUST KINDA ON OUR OWN SAYS THAT'S WHAT WE'RE GONNA DO.AND I'VE, I'VE, I'VE DISCUSSED IT WITH Y'ALL BEFORE, THAT IF YOU HAVE X AMOUNT OF DOLLARS GOING INTO INFRASTRUCTURE FUNDS FOR CAPITAL IMPROVEMENTS, THAT'S FINE AS LONG AS YOU EXPLAIN IT AND THAT'S HOW YOU USE IT.
BUT IF YOU WIND UP CHARGING, YOU KNOW, GOING TO 8% INCREASE OR 12% OR WHATEVER IT IS, AND THEN YOU USE THAT FOR M AND O UHUH, THAT'S NOT ACCEPTABLE.
WE HAVEN'T DONE THAT FOR THE PAST.
RICK HAS BEEN, UM, A CHAMPION ON YOUR BEHALF FOR THE PAST THREE YEARS THAT'S COME UP AND EACH TIME HE SAID, HEY, THAT MONEY'S NOT BACK IN THERE.
WE NEED TO PUT A LINE AND PUT THAT SEPARATED OUT AND MAKE SURE WE FUND THAT OUT OF OUR GENERAL FUND AND NOT, AND YOU'RE TRYING TO PUT THAT IN THE, FOR THE CAPITAL IMPROVEMENTS AND INFRASTRUCTURE.
AND WE'RE DO WE'VE ACTUALLY SET, WHICH IS GOOD.
NO, THAT'S, THERE'S NOTHING WRONG WITH THAT.
WE'VE SET UP ANNEMARIE SET UP AN ACCOUNT, THERE'S A SEPARATE YEAH, I'M MORE THAN HAPPY WITH YOU ON A LITTLE EXTRA INCREASE.
NO, IT, BUT LET ME REMIND YOU, WELL, IN FIVE YEARS YOU'VE DONE ONE BLOCK.
HOW MANY BLOCKS ARE THERE IN THIS CITY? HOW MANY? A HUNDRED, 200.
WELL, AND THAT'S THE RATE YOU'RE GOING IS GOING TO TAKE YOU 100 TO 200 YEARS TO EVER GET THERE.
IT, IT'S OVER TO EVER GET THERE, OVER THERE AND MAKE IMPROVEMENTS AND, UH, IMPROVE, YOU KNOW, THE INFRASTRUCTURE STREETS AND WATER AND SEWER LINES.
I DON'T YOU DON'T HAVE A CHOICE IF YOU'RE GONNA GET THERE, PERIOD.
BUT, BUT TERRY, $10 MILLION IN BOND TAKES US TO 0.94 AND YOU'RE B******G ABOUT 0.88.
THE TAX RATE I'M B******G ABOUT AND TALKING ABOUT IS M AND O CAPITAL IMPROVEMENT'S A DIFFERENT STORY.
AND AS LONG AS YOU'RE USING TWO OR 300,000 A YEAR FOR CAPITAL IMPROVEMENTS, THAT'S FINE.
BUT NOTHING SAYS NEXT YEAR YOU WON'T DO THAT.
THE CURRENT COUNCIL HAS, THE CURRENT COUNCIL HAS BEEN DOING THAT FOR, THIS IS THE THIRD YEAR AT SOME POINT.
IT'S GOTTA BE TIED TO, UH, CAPITAL, YOU KNOW, EXPENDITURES AND YOU'RE REQUIRED TO, UH, PAY DOWN THAT CAPITAL DEBT EVERY YEAR.
AND, AND IF YOU DON'T DO THAT, YOU'RE NEVER GONNA GET THERE.
AND, AND THE WAY TO, I'M JUST, THE WAY TO TO LOCK IT IN, TERRY, WOULD BE TO INCREASE THE ROAD USE FEE TO 30 INSTEAD OF DOING THIS TAX RATE.
IF FEES ARE ANOTHER WAY OF GETTING THERE, YOU'RE RIGHT.
IS THERE, IS THERE SUPPORT FOR THAT? AND, AND AT SOME POINT THAT ROAD USE, ROAD USE FEE HAS GOTTA CONTINUE TO INCREASE.
WILL WE LIKE IT OR NOT? AND I THINK COUNCIL, IF, IF THE, IF THE CITIZENS SAID WE WANT TO INCREASE THE SPEED OF THE ROAD AND, AND, UH, WATERLINE REPLACEMENT AND INSTEAD OF DOING $30 ON ROAD USE, MAYBE WE DO 20 ON ROAD AND 20 ON INFRASTRUCTURE THAT PAYS FOR THE WATER LINES.
WE GET TO THE SAME POINT, BUT IT'S LOCKED IN.
I THINK COUNCIL WOULD BE OKAY WITH THAT.
TO GET WHERE YOU NEED TO GET THAT ROAD USE FEE ON THE UTILITY BILL WOULD NEED TO BE ABOUT A THOUSAND DOLLARS A MONTH.
IT IS NOT GOING TO GET THERE WITH 10 OR 20 BUCKS AND TO MAKE IT HAPPEN.
AND, AND WE CAN'T, WE CAN'T BE A HUNDRED YEARS FROM NOW STILL TRYING TO GET BLOCK 15 DONE.
I'M JUST, YOU KNOW, THOSE ARE THE FACTS NOW.
BUT PART OF THE, PART OF WHAT WE LOOK AT AND PART OF THE BALANCE, AND WE'RE NOT, I'M NOT BRINGING IT UP TONIGHT, BUT PART OF THE DISCUSSION IS HOW DO WE, HOW DO WE, UH, ANNE-MARIE MENTIONED WE'VE GOT A THIRD OF OUR PEOPLE THAT ARE OVER 65, WHICH MEANS THEY'RE PROBABLY LIVING ON SOCIAL SECURITY AND A FIXED INCOME.
IF YOU PUT A $30 ROAD FEE ON THERE, THAT'S GONNA HURT THEM A LOT MORE THAN IT'S GONNA HURT SOMEBODY WHO MIGHT GET A LITTLE MORE VALUE AND MOVE INTO THE NEIGHBORHOOD AND KNOW THEY'RE GONNA PAY A LITTLE MORE TAXES.
'CAUSE THEY'RE, THEY'RE PAYING 350 FOR THEIR HOUSE INSTEAD OF THE 75 THEY PAID 30 YEARS AGO.
WE ARE NOT TRYING TO PRICE PEOPLE OUT OF THE NEIGHBORHOOD.
SO PART OF WHAT WE'RE GONNA HAVE TO DISCUSS IS INCREASING THAT OVER 65 EXEMPTION THAT CAME UP AT LAST WEEK'S MEETING.
AND I, YEAH, I'VE, I'VE, I'LL PROPOSE THAT I'VE, YOU KNOW, OVER 65, BUT RIGHT NOW, BUT, BUT YOU LOOK AT THE TAX ON AVERAGE HOMESTEAD, JUST WITH WHAT YOU'RE PROPOSING, AND IT'S ON THE SHEET HERE, YOU HAVE ONLINE, IT'S SHOWING A, A INCREASE OF $336 OR SHOWING NEARLY 20% INCREASE IN OUR ADVIL ALARM TAX FOR HOMESTEAD.
I'M JUST, YOU KNOW, BASED ON THE CURRENT FEE, I THAT'S, THAT'S IT RIGHT THERE.
WHAT SHE JUST CALCULATED ON, ON AN AVERAGE $286,000, WHICH IS THE AVERAGE HOMESTEAD THAT THE
[00:45:01]
CAD GAVE US FOR, FOR MEADOWS.WE'RE, WE'RE LOOKING AT THAT IF, IF WE INCREASE TO THE VOTER APPROVED RATE, IT'S $90 MORE A YEAR.
UH, IF WE GO UP TO THE, UH, 0.88, IT'S 194 A YEAR.
SO, UH, LESS THAN LESS THAN $20 A MONTH.
BUT THAT VERSUS, WELL ONE, YOU HAVE, ONE YOU HAVE ONLINE, WHICH YOU PULLED UP FOR NEXT WEEK'S MEETING, SAYS, UH, AVERAGE, UH, TAX ON AVERAGE HOME SAYS 1692 AND 23 AND 24 IS 2 0 2 9.
I'M JUST SAYING FROM 22 TO 23 IT WENT UP NEARLY 20%.
AND YOU KNOW, IT'S EVERY YEAR JUST, JUST THE TAX.
BUT AGAIN, BACK TO THE BUDGET.
WHERE DOES THE 687,000 COME FROM? THAT'S ON YOUR PROPOSED BUDGET HERE, RIGHT? HUH? SOME OF THAT'S NEW.
SO THE, THE TIM HORTONS IS NEW.
NEW BUILDINGS DOESN'T COUNT AGAINST YOUR VAR TERRY.
SO WE'VE GOT NEW BUILDINGS, WE'VE GOT, UM, REMODELS.
AND THAT DOESN'T COUNT AGAINST YOUR, YOUR NUMBER CORRECT.
ANNA MARIA, IF I'VE GOT THAT RIGHT.
ON THE WEBSITE IS THE TAX RATE CALCULATION WORKSHEET FROM THE CAD.
YOU CAN GO THROUGH ALL THE CALCULATIONS THAT THEY USE TO GET TO THESE TAX RATES.
AND HONESTLY, I'VE LOOKED AT THAT AND THERE'S JUST SEVERAL ITEMS THAT GO IN THERE, ESPECIALLY ON THE, THE VAR.
SO IF WE WERE NOT AT THE VAR LAST YEAR, WE, WE BASICALLY LOST SOME REVENUE.
SO THEY ADD THAT INTO THIS YEAR'S VAR NUMBER.
SO THERE'S JUST ALL SORTS OF CALCULATIONS IN THERE.
I ADVISE YOU TO GO LOOK AT THAT WORKSHEET AND GET AS CONFUSED AS I AM.
I JUST, THE ACTUAL, OH, TOTAL TAX LEVY ONLINE, WHEN YOU LOOK AT ONLINE AND WHAT YOU HAVE FOR NEXT WEEK INCLUDES THE HALF PERCENT VALOREM TAX.
SO YOU GOTTA ADD THOSE TWO TOGETHER TO GET IT TO OKAY.
4.3 AND YOU'RE GOING TO, UH, BUT ONLINE IT HAS 20 23, 4, 3 1 1 4 MILLION, 311,000, 2024, 4 MILLION, 818,000, WHICH YOU WENT UP NEARLY 500,000 FROM 23 TO 24 AND, UH, INCREASE 507,000 OR THAT'S 11.77%.
SO THE CURRENT RATE THAT YOU'RE PROPOSING RIGHT NOW IS PUTTING IT CLOSE TO 12% BASED ON WHAT YOU'RE SHOWING ONLINE.
ANYTHING ABOVE 8%? NO, UHUH, YOU, YOU'VE GOTTA BACK OUT ALL THE NEW CONSTRUCTION FROM THAT NUMBER, TERRY.
THE VAR IS BASED ON EXISTING BUILDINGS AND EXISTING CONDITIONS.
AND SO THE V THE, LIKE THE TIM HORTON'S OVER HERE GETS BACKED OUT OF THAT NUMBER.
UH, AS LONG AS THE REVENUE STAYS BELOW $500,000 INCREASE AND THE RATE IS 8% OR LESS, I'M OKAY WITH IT.
ANYTHING ABOVE AN 8%, I'M NOT OKAY WITH IT.
AND RIGHT NOW THE CURRENT RATE THAT YOU'RE PROPOSING IS, IS UP IN 11 12% RANGE.
WELL, OUR DISCUSSION NEXT WEEK ON MONDAY WILL BE TO FINALIZE THE ACTUAL RATE AND WE CAN LOOK AT SOME ADDITIONAL NUMBERS.
WE'LL GO BACK AND LOOK AT WHAT YOU'RE LOOKING AT ONLINE AND WE'LL HAVE, UH, MAKING SURE WE'RE LOOKING AT THE TML UH, GUIDELINES WHEN IT COMES TO DE MINIMIS AND SMALL CITIES.
SO WE DON'T HAVE ANY CONFUSION ABOUT THAT.
BUT OUR GOAL TONIGHT IS TO GET FEEDBACK ON THE BUDGET AND, UH, SOME OF THE COMMENTS THAT HAVE BEEN MADE, UH, UH, AGAIN, I RICK'S POINT AND MY POINT LAST WEEK WHEN WE TALKED ABOUT THIS IS WE WANT TO HEAR FROM THE PUBLIC.
WE'VE GOT AN OLD CITY, WE'VE GOT PEOPLE IN THE CITY THAT ARE ON FIXED INCOMES.
AND WE KNOW WE'RE GONNA HAVE REPAIRS THAT ARE NEEDED.
WE'VE ASKED THE STAFF TO CREATE A BALANCED BUDGET BASED ON NO NEW REVENUE,
[00:50:01]
SO THAT IF WE HAVE ADDITIONAL REVENUE, IT CAN BE USED FOR INFRASTRUCTURE AND CAPITAL IMPROVEMENTS.WE KNOW WE'VE GOTTA GET TO GET TO WORK ON THE THINGS THAT HAVE BEEN KICKED DOWN THE ROAD OR WHATEVER.
WE'RE, WE'RE IN AN OLD CITY THAT NEEDS A LOT.
I'VE HAD TO PULL ANOTHER 20 OR $30,000 OUTTA INVESTMENT JUST TO MAKE ENDS MEET THIS PAST YEAR.
SO, AND AT SOME POINT IT'S GONNA BE A REAL ISSUE.
AND SO PART OF IT IS HOW DO WE BALANCE WHAT WE NEED TO DO WITH WHAT WE CAN AFFORD TO DO WITH WHAT OUR CITIZENS ARE TELLING US, HEY, I I THIS IS HURTING MORE THAN IT, IT NEEDS TO, OR THIS NEEDS TO BE CUT OR THIS NEEDS TO BE ADDED.
AND PART OF IT IS AMENITIES, WHICH WE'VE RAISED SOME FEES TO OFFSET SOME OF THOSE.
WE'VE MADE THE DECISION TO CUT BACK ON THE NEWSLETTER FROM MONTHLY TO QUARTERLY.
UH, LAST SEASON WE SAID NO TO A DOG PARK THAT PEOPLE WANTED TO HAVE, BUT IT WAS GONNA COST US ANOTHER $50,000 PLUS MAINTENANCE.
WE'RE LOOKING AT WAYS OF SAVING.
WE'RE, WE'VE MADE SOME INVESTMENTS IN SOME OF THE SOFTWARE TOOLS THAT WE'RE USING.
WE'VE DONE SOME THINGS WITH OUR SPRINKLER MAINTENANCE TO, TO LOWER OUR OVERALL COST.
WE'RE DOING THINGS WITH GRANTS SO THAT WE DON'T HAVE TO PAY FOR POLICE RADIOS AND JACKETS.
THERE'S SO MUCH THAT THE CITY'S DOING TO BRING DOWN THE OVERALL CITIZEN COST THAT MAYBE DOESN'T SHOW UP WELL ON A A, AN EXCEL SPREADSHEET BUDGET.
I KNOW, BUT KNOW THAT WE'RE WORKING ON IT.
TO NOT HAVE AN INCOME OTHER THAN WHAT I PULL OUT OF RETIREMENT OR HAVE FROM SOCIAL SECURITY.
SO IT'S NOT A, IT'S NOT FOREIGN TO ME TO KNOW, HEY, WHAT DO WE MAKE A CHOICE OF HERE? SO THAT'S KIND OF WHERE I THINK ALL OF US SITTING AROUND THE, THE, THE D ARE IN THE SAME SITUATION.
I WISH KELLY WERE HERE TONIGHT.
'CAUSE SHE'S A GOOD SPOKESPERSON FOR PEOPLE THAT ARE THAT, AND I THINK SHE'S, SHE'S BEEN ON THE COUNCIL FOR 12 YEARS, SO I, I'M RELATIVELY NEW, BUT WHEN I FIRST GOT HERE, THAT WAS ONE OF THE FIRST THINGS I SAID IS WHAT ARE WE, WHAT ARE WE GONNA DO TO THINGS GOING AND, AND NOW WE, YOU KNOW, WHEN I, I RIDE BY ON MONTECITO, I SEE MY NAME UP THERE, $4 MILLION TO REDO THE SEWER SEWER PLANT.
THANK GOODNESS WE HAD MOBILITY MONEY, WE HAD COUNTY MONEY, WE HAD ARPA MONEY, WE HAD OTHER THINGS BECAUSE CORRECT.
ANOTHER YEAR OR TWO, WE WOULDN'T BE ABLE TO FLUSH OUR TOILET.
AND, AND I'M, I'M NOT TRYING TO DIFFICULT LITTLE DRAMATIC D OR HYPERBOLIC HERE.
IT'S DIFFICULT TO ANTICIPATE ALL THAT STUFF.
AND YOU KNOW, EXPENDITURES IS GONNA COME UP AND SOMEHOW YOU'VE GOTTA BILL RESERVES AND IT'S TOUGH.
NOW I UNDERSTAND WE STARTED, I LEAST SPENT 30 SOMETHING YEARS, YOU KNOW, DO DOING THIS EVERY YEAR.
AND I, YOU KNOW, I'M GLAD I'M NOT IN THE, IN THE LOOP NOW OTHER THAN I CAN MAKE SOME COMMENTS AND THEN GO BACK HOME.
SO, SO WE'RE LOOKING AT A SEVEN AND A HALF MILLION DOLLAR BUDGET JUST ON GENERAL FUND, NOT COUNTING UTILITIES.
THAT'S ANOTHER, WHAT, 3 MILLION, TWO AND A HALF, WHATEVER, WHATEVER IT IS.
I PUT A POST OUT ON FACEBOOK SAYING WE'RE GONNA HAVE A MASSIVE TAX INCREASE TO STIR THE POT.
WE'VE NEVER HAD, IT IS NEVER, YEAH.
YOU'RE NOT GONNA HAVE ANYBODY HERE.
FOR THE MOST PART, THEY DON'T UNDERSTAND, UH, THE BUDGET PROCESS.
THEY DON'T UNDERSTAND THE NUMBERS OR ANYTHING.
I MEAN, I, I, I KNOW HOW IT GOES AND, YOU KNOW, THAT'S, IT'S DIFFICULT.
BUT I, I RETIRE IN FIVE YEARS.
OUR PLAN IS TO SELL THE HOUSE AND BUY AN RV.
THIS ISN'T GONNA AFFECT ME ONE WAY OR THE OTHER.
IT WILL AFFECT YOU IF WE, IF WE DON'T DO SOMETHING IN THE NEXT FIVE YEARS, YOUR HOUSE WON'T BE WORTH A WHOLE LOT.
WELL, I RETIRED OVER 10 YEARS AGO AND IT'S GETTING WORSE.
AND, AND I, I KNOW FROM A BUDGET STANDPOINT IT'S DIFFICULT AND, AND YOU, AND YOU CAN'T STAY UP WITH INFLATION AND, AND YOU'RE UH, YOU KNOW, YOU WANT TO GIVE, UH, EVERYBODY A RAISE WHEN YOU REALLY CAN'T.
AND THAT JUST, IT'S, IT'S, IT'S TOUGH.
TERRY, DID YOU HAVE ANY ADDITIONAL COMMENTS OR QUESTIONS? I REALLY APPRECIATE YOU COMING AND SHARON TONIGHT.
IS THERE ANYBODY ELSE THAT WOULD LIKE TO COME TO THE PODIUM? YES, SIR.
I GET THE, I GET THE EXTRA MINUTE.
UH, BACK IN 2003, SOME OF Y'ALL WASN'T EVEN A CITIZEN OUT HERE BY THEN, BUT THE CITY COUNCIL RAISED THE HOMESTEAD EXEMPTION FOR PEOPLE OVER 65 FROM, FROM, UM, 15,000 I THINK TO 30,000 WHAT IT IS
[00:55:01]
NOW.ANYWAY, IT HASN'T BEEN TOUCHED SINCE THEN.
SO IF YOU LOOK AND SEE WHAT HOUSES WERE SELLING FOR BACK IN 2003, WHICH WAS AROUND A HUNDRED THOUSAND DOLLARS OR LESS, I DON'T KNOW.
AND YOU LOOK AT WHAT THEY'RE SELLING FOR TODAY, TO GET THE SAME EFFECT FOR PEOPLE OVER 65, THAT WOULD HAVE TO BE RAISED TO OVER A HUNDRED THOUSAND DOLLARS.
YOU KNOW, WE, UH, TAKE A SERIOUS LOOK AT THAT.
NOW YOU SAID THAT YOU CAN'T BE DONE AT THIS BUDGET AND YOU SAID IT HAD TO BE BROUGHT UP IN THE SPRING.
WELL THEN I WOULD HIGHLY RECOMMEND YOU PUT IT ON THE MARCH UH, AGENDA.
MIKE, I WANT YOU TO KNOW THAT WE ARE LOOKING AT IT.
THIS IS SOMETHING WE'VE BEEN DISCUSSING QUITE A BIT.
WELL THE OTHER COMMENT I HAVE IS, UH, LIVING ON A FIXED INCOME AND, AND BEING RETIRED.
IT, IT, IT, IT'S DIFFICULT, ESPECIALLY WHEN YOU GO TO THE GROCERY STORE.
REMINDER THAT THE PUBLIC HEARING ON THE TAX RATE IS MONDAY, AUGUST 26TH AT SIX 30.
UM, WE WILL NOW CLOSE THE PUBLIC HEARING.
WELL, BEFORE WE DO, I NEED TO APOLOGIZE TO COUNSEL.
I APPARENTLY HAVE MYSELF DOUBLE BOOKED FOR NEXT MONDAY.
UM, SOMEHOW I THOUGHT IT WAS ON TUESDAY AND IN FACT I WAS TRYING TO CORRECT MY WIFE THIS MORNING AND SHE PULLED UP THE POST AND, UH, SHOWED ME I WAS THE ONE THAT WAS INCORRECT.
SO I WILL NOT BE HERE ON MONDAY.
I'M IN A CALL FOR A MOTION TO APPROVE ORDINANCE NUMBER 20 24 33 APPROVING AND ADOPTING THE CITY OF MEADOWS PLACE, MUNICIPAL BUDGET FOR FISCAL YEAR 2024.
I'LL NOW CALL UPON EACH COUNCIL MEMBER BY NAME TO TAKE THE RECORD VOTE ONCE.
YOUR NAME IS CALLED ANSWER I TO SIGNIFY YOUR APPROVAL OF THE MOTION OR NAY TO SIGNIFY YOUR DISAPPROVAL.
COUNCIL MEMBER BAKER STATE YOUR VOTE.
COUNCIL MEMBER STALEY STATE YOUR STATE YOUR VOTE.
COUNCIL MEMBER MERTON, STATE YOUR VOTE.
LET THE RECORD REFLECT THAT COUNCIL MEMBER MILLS IS ABSENT AND DID NOT VOTE.
LET THE RECORD REFLECT THAT COUNCIL MEMBER KSKY IS ABSENT AND DID NOT VOTE.
THAT TAKES US TO AGENDA ITEM NUMBER TWO.
ARE YOU READY? THREE, THREE, SORRY.
NUMBER THREE, DISCUSSION AND CONSIDERATION OF ORDINANCE NUMBER 20 24 34 AMENDING THE UTILITY FUND BUDGET FOR THE FISCAL YEAR ENDING SEPTEMBER 30TH, 2024.
INCREASING LINE ITEM 3 0 0 0 4 6 5 6 7 0 0 0.
UTILITY WATER MAINTENANCE AND REPAIRS $55,300 FROM THE UTILITY FUND BALANCE TO COMPLETE THE LEAD AND COPPER INSPECTIONS PER THE TCEQ REQUIREMENTS.
I HAVE ROD HERE TONIGHT AND HE'S COMING TO THE PODIUM TO TALK TO US A LITTLE BIT ABOUT THIS AGENDA ITEM.
MOVE TO APPROVE NOT GETTING FINED BY TCEQ
DO YOU WANT ME TO JUST GO AHEAD AND I, I I DON'T KNOW THAT WE NEED TO HEAR, I MEAN, THIS IS A STATE REQUIREMENT, SO WE WANNA MAKE SURE THAT WE HAVE SAFE DRINKING WATER.
BASICALLY THIS IS AN IMPROVEMENT IN LEAD AND COPPER REQUIREMENTS.
WE CURRENTLY COMPLY WITH, UH, THE SAMPLING REQUIREMENTS AND OUR RESULTS ARE ALWAYS LOWER THAN THE MINIMUM THRESHOLD.
WHAT EPA WANTS TO DO IS TO ACHIEVE A HUNDRED PERCENT REDUCTION.
THIS SURVEY THAT WE'RE DOING IS IDENTIFYING THE TYPE OF MATERIAL THAT THE CITY OWNS ON THE CITY SIDE AND IDENTIFYING THE TYPE OF MATERIAL ON THE PRIVATE SIDE.
I DON'T BELIEVE WE HAVE ANY LEAD LINES IN THEIR CITY.
SO WE HAVE TO COMPLY WITH THIS.
MM-HMM,
AND, BUT THAT'S SOMETHING THAT WE ARE HAVING NO TROUBLE COMPLYING WITH.
[01:00:01]
ALL THOSE IN FAVOR SAY AYE.AGENDA ITEM NUMBER FOUR, DISCUSSION AND CONSIDERATION OF ORDINANCE NUMBER 20 24 35.
AMENDING THE GENERAL FUND BUDGET FOR THE FISCAL YEAR ENDING SEPTEMBER 30TH, 2024.
INCREASING LINE ITEM 1 0 0 0 4 0 5 2 0 5 1 0 PUBLIC WORKS VEHICLE PURCHASE $45,000 FROM THE GENERAL FUND BALANCE TO PURCHASE A NEW VEHICLE FOR PUBLIC WORKS.
DO I HAVE A SECOND DAVID? SECONDS.
IS THERE ANY DISCUSSION? AND THEN WHAT ARE WE DOING WITH THE OLD VEHICLE AGAIN? OR IS THIS AT ADDITION TO FLEET? IT'S, THIS IS YOU GONNA SELL THE OLD ONE, THE OLD, THE OLD ONE'S AT A POINT WHERE WE HAVE SOME PENDING REPAIRS AND AFTER REVIEW IT, UH, WE'VE DECIDED IT'S NOT WORTH MAKING.
THIS IS THE ONE THAT WAS GONNA COST LIKE $10,000 TO REPAIR.
IT'S, IT'S ABOUT $7,000 JUST TO FIX THE GAS TANK.
AND WITHOUT OBJECTION, THIS MEETING STANDS ADJOURNED.
THANK YOU GUYS SO MUCH FOR COMING.