[00:00:01]
[I. COMMENCEMENT]
NOTICE IS HEREBY GIVEN A SPECIAL COUNCIL MEETING AND FINAL BUDGET WORKSHOP ON THE FISCAL YEAR 20 25, 20 26 BUDGET FOR THE CITY OF KLUTE, TEXAS TO BE HELD ON THURSDAY, AUGUST THE SEVENTH, 2025 AT 6:30 PM IN THE COUNCIL CHAMBERS OF KLUTE CITY HALL, LOCATED AT 1 0 8 MAIN STREET, KLUT, TEXAS 7 7 5 3 1.FOR THE BELOW LISTED ITEMS, CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO EXECUTIVE SESSION AT ANY TIME DURING THE COURSE OF THIS MEETING TO DISCUSS ANY MATTERS LISTED ON THE AGENDA AS AUTHORIZED BY THE TEXAS GOVERNMENT CODE, INCLUDING BUT NOT LIMITED TO.
CONSULTATION WITH AN ATTORNEY, 5 5 1 0 7 2 DELIBERATION ABOUT REAL PROPERTY, 5 5 1 0.073 DELIBERATION ABOUT GIFTS AND DONATIONS.
5 5 1 0 7 4 PERSONNEL MATTERS.
DELIBERATION ABOUT SECURITY DEVICES 5 5 1 0.087.
ECONOMIC DEVELOPMENT 4 8 7 5 1 8 3 DELIBERATION ABOUT HOMELAND SECURITY ISSUES AND IS AUTHORIZED BY THE TEXAS TAX CODE INCLUDED ON LIMITED SECTIONS 3 2 1 0.3022 SALES TAX INFORMATION.
THE AGENDA MEETING PACKET AND VIDEO LINK ARE POSTED ON THE CITY'S WEBSITE@WWW.KLUTEXAS.GOV.
TO ADDRESS THE COUNCIL DURING PUBLIC COMMENTS, GENERAL PUBLIC COMMENT FORM MUST BE COMPLETED AND PRESENTED TO THE CITY CLERK BEFORE THE START OF THE COUNCIL MEETING.
SPEAKERS MUST OBSERVE THE FIVE LIMITED TIME RULE RECORDING OF THE MEETING.
VIDEO MEETING VIDEO WILL BE MADE AVAILABLE UPON RE REQUEST TO THE PUBLIC IN ACCORDANCE WITH OPEN MEETINGS ACT MEETING HAS NOW BEEN CALLED TO ORDER.
WOULD YOU CARE TO BLESS US? THANK YOU FOR ANOTHER DAY.
WE WANNA THANK YOU FOR THE RAIN.
ALL OUR TREES AND GRASSES AND STUFF, HOT WEATHER.
WE JUST ASK BLESS FIRST RESPOND.
JOIN US IN THE PLEDGE, PLEASE.
I WOULD PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE LIBERTY AS JUSTICE SPER.
NOW I HAVE ROLL CALL TO MEMBERS, CALVIN SHIPPLE.
JOE LOPEZ PRESENT, FRANCIS VAUGHN.
[II. CONSENT AGENDA]
UH, FIRST ITEM ON TONIGHT'S AGENDA.AGENDA IS CONSENT AGENDA, AND IT IS ACCOUNTS PAYABLE.
REPORTS FOR WEEKEND ENDING JULY THE 11TH, 2025.
WEEKEND IN JULY 18TH, 2025, WEEKEND ENDING JULY THE 25TH, EIGHTH, 2025.
GREAT TEXAS MOSQUITO FESTIVAL, JULY, 2025, AND ENDING AUGUST 1ST, 2025.
DO I HAVE A MOTION TO APPROVE THE CONSENT AGENDA? SO MOVED.
DO I HAVE A SECOND? I'LL SECOND.
ANY ITEMS NEED TO BE REMOVED? ANY DISCUSSION? HEARING NONE, I'LL ENTERTAIN A VOTE.
[Ill. WORKSHOP ITEMS]
WILL BE WORKSHOP ITEMS. AND ITEM ONE IS DISCUSSION OF THE FISCAL YEAR 20 25, 20 26.BUDGET PLANNING, TFD, UH, PRESENTATION.
UH, AND I KNOW THAT THE, UH, THE, UH, POSTING SAYS FINAL WORKSHOP ON THE BUDGET STAFF IS ACTUALLY GONNA REQUEST THAT WE DO ONE MORE.
UH, WE'RE STILL MODELING IN THE SOLID WASTE STUFF.
JOHN AND I HAVE BEEN CRUNCHING NUMBERS, LOOKING TO CALL, TRYING TO FIGURE OUT A WAY TO SKIN THAT CAT.
UH, SO WE ASK THAT, UH, COUNSEL, MAYBE TAKE, LEAVE AND ALLOW US TO BRING IT BACK TO YOU ONE MORE TIME BECAUSE IT'S A PRETTY BIG DECISION, AND WE'LL MAKE SURE WE'VE GOT ALL THE INFORMATION BEFORE YOU THAT WE HAVE.
I'M GONNA MOVE FORWARD IN THE PRESENTATION.
WE'LL GET TO THE REALLY BAD NEWS.
UH, ONCE WE, UH, ONCE WE FINISH THIS, UH, AS I SAID, WE'RE LOOKING AT A COUPLE OF SIGNIFICANT CHANGES.
UH, RIGHT NOW OUR INITIAL RE-RATE ON THE HEALTHCARE CAME BACK AT 43%.
WE GET BUDGETED 30, UH, KNOWING WHAT OUR LOSS RATIO IS, THEY'VE DIALED IT BACK TO 27 WHERE WE'RE WAITING.
ANGEL ON TWO MORE QUOTES OR 1, 2, 2 MORE QUOTES TO COME IN AND HOPEFULLY WE CAN
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LEVERAGE IT A LITTLE BIT LOWER.UM, BUT, UH, NOT GOOD NUMBERS.
AND, UH, I SHOULD NOTE THAT I GUESS OUR LOSS RATIO WAS ENOUGH TO SCARE TML EVEN FROM PUTTING A BID IN.
SO, UH, THE CHANGES WE'VE MADE SO FAR ARE A LITTLE BIT, UH, MINUSCULE.
UH, SO THE NUMBERS HAVEN'T CHANGED A SIGNIFICANT AMOUNT SINCE WE LAST MET.
UH, WE DID INCLUDE, CHIEF DID A GREAT JOB.
WE WAS SUCCESSFUL IN GETTING THE, UH, GRANT FOR THE LICENSE PLATE READERS.
SO WE, UH, HAVE A $120,000 OFFSET TO THAT EXPENSE IN THE BUDGET.
UH, WE DID GO AHEAD, UH, BECAUSE WE WERE ABLE TO LEVERAGE THAT GRANT.
WE PUT THE UTV FOR EMS FIRE, WHOEVER NEEDS IT, UH, BACK INTO THE BUDGET.
UH, AND THEN WE, UH, INCLUDED THE PRIME LEVEL BENEFIT THAT WE DISCUSSED LAST TIME, UH, FOR THE, UH, FOR EVERYBODY.
UH, SO THAT'S IN THERE NOW, AND IT'S PARTIALED OUT BY PAR, PARCELED OUT BY DEPARTMENT.
AND THE
SO YOU CAN KIND OF SEE WHAT THAT COST LOOKS LIKE.
UH, AND THEN WE HAVE REVISED OUR FORECAST BOTH IN THE CURRENT YEAR AND THE COMING YEAR.
WE GET KIND OF A RUDE SHOCK, AND I'LL TALK ABOUT THAT WHEN I GET INTO THE TAX RATING, UH, IN TERMS OF THE VALUE THAT THE CITY ACTUALLY HAS OR IS BEING TAXED AGAINST VERSUS WHAT WAS INITIALLY GIVEN TO US AND HOW WE SET OUR REVENUE NUMBERS.
SO I'LL, I'LL KIND OF GO THROUGH THAT.
UH, BUT HERE'S WHERE WE'RE AT, WHERE WE STAND CURRENTLY.
SO, REALLY QUICK, I WANTED TO ASK A QUESTION ABOUT THE NEXT LEVEL.
CARE, ARE WE ABLE TO ADD DEPENDENTS? YES.
OH, I WAS GONNA PAY FOR IT, BUT
IT'S, IT'S, IT'S ALL, ALL INCLUSIVE.
EVERYTHING IS INCLUDED IN THE DEAL.
I DON'T KNOW HOW THEY'RE MAKING MONEY ON THIS, AND QUITE FRANKLY, I DON'T WANNA TAKE 'EM OFF TO THE FACT THAT IT MIGHT BE A BAD BUSINESS MODEL, BUT WE'LL TAKE ADVANTAGE OF WHILE WE CAN.
SO, UH, WHAT'S CHANGED? UH, THE BOTTOM LINE, IF YOU TAKE A LOOK, VERSION, A, UH, VERSION ONE, UH, STILL INCLUDES, UH, OPERATING THE GARBAGE SERVICE.
VERSION B STILL INCLUDES, UH, DEVOLVING THE, OR OUTSOURCING THE GARBAGE SERVICE.
UH, YOU CAN STILL SEE BOTH HAVE A PRETTY NEGATIVE EFFECT, UH, BASED ON THE REVENUE REVISIONS THAT WE'VE HAD TO MAKE, UH, FOLLOWING THE, UH, THE VALUATION NUMBERS THAT WE GOT IN LAST WEEK.
SO, UH, WE'RE ABOUT BETTER THAN WHERE WE WERE THIS TIME LAST YEAR, BUT NOT AS GOOD AS WE WANTED TO BE.
SO, UH, IN TERMS OFOR REVENUE WE'RE PROJECTING NOW, THE ORIGINAL NUMBER THAT WAS PRESENTED TO YOU WAS A LITTLE OVER 4.1, ALMOST 4.4120.
UH, WE REVISED THAT DOWN ABOUT $90,000.
AND IT MAY GO LOWER THAN THAT BASED ON THE ACTUAL VALUATIONS, DEPENDING ON WHERE THEY TURN OUT.
LIKE I SAID, I'LL DISCUSS THAT WHEN WE TALK TAX REVENUE HERE IN JUST A LITTLE BIT.
UH, OTHERWISE WE DO THINK THAT, UH, WE'RE HAVING A BETTER YEAR, UH, PROJECTED WISE ON SALES TAX.
SO WE ARE, WE'RE COMFORTABLE NOW WITH THAT NUMBER.
UH, AND THEN WE'RE IN THE PROCESS OF RENEGOTIATING THE, UH, IDA.
WE STARTED HAD OUR FIRST MEETING ON TUESDAY.
UH, WE FEEL PRETTY GOOD THAT THE, THE NUMBER'S GONNA HOLD TRUE.
I WOULD NOTE THAT THIS YEAR WE DID HAVE THAT CORRECTIVE STATEMENT.
SO OUR REVENUE NUMBERS ARE A LITTLE BIT LOWER THAN WHAT THEY ACTUALLY SHOULD HAVE BEEN.
UH, THERE WAS A MISTAKE ON BEHALF OF THE APPRAISER RELATED TO THAT.
THEY INCLUDED A, UH, A VALUE COMING ON A YEAR EARLY, SO WE HAD TO MAKE THAT CORRECTIVE MEASURE BACK IN DECEMBER.
SO THAT'S WHY THAT NUMBER'S A LITTLE BIT LOWER THAN WHAT WE HAD BUDGETED.
UH, OTHERWISE, EVERYTHING'S REVENUE-WISE TENDS TO BE TRENDING, UH, FAIRLY WELL, FAIRLY CONSISTENTLY, AND, AND OUTPERFORMING IN IN SEVERAL SPOTS, WHICH IS GOOD.
UH, LOOKING DOWN HERE, YOU'LL NOTICE THE RE THE BIG YELLOW LINE FOR THE CAT B REIMBURSEMENT.
UH, WE'VE BEEN TOLD IT'S COMING, BUT, UH, YOU KNOW, I'LL BELIEVE IT WHEN THE CHECK'S IN HAND.
UM, HE ASKED US IF WE ACCEPT A THIRD PARTY OUTOF STATE CHECK.
I DIDN'T THINK THAT WAS A PROBLEM.
BUT, UH, SUPPOSEDLY IT'LL BE HERE SOON.
SO WE HOPE, HOPE TO HAVE THAT.
I WOULD NOTE THAT EMS IS HAVING A BANNER YEAR, UH, IN TERMS OF COLLECTION, CORONAS IS WELL OUTPERFORMING WHAT WE EXPECTED, UH, IN TERMS OF RECOVERY FROM INSURANCE AND MEDICAID, UH, WHICH IS HIGHLY UNUSUAL.
SO, BUT AGAIN, NOT, NOT LOOKING A GIFT HORSE IN THE MOUTH.
BUT WE'VE KEPT OUR NUMBER ABOUT WHERE IT'S BEEN LAST FEW YEARS.
'CAUSE WE KNOW THAT EVENTUALLY EVERYTHING RETURNS TO A MEETING, WATER ALWAYS FINDS ITS LEVEL.
SO WE ARE LOOKING, UH, TO FINISH THIS YEAR AT ABOUT $12.8 MILLION IN REVENUE.
UH, NEXT YEAR WE PROJECT A LITTLE, A SLIGHT INCREASE, AND THEN IF WE GET THE, THE FEMA MONEY BACK IN, WE'LL BE IN A MUCH BETTER POSITION.
BUT RIGHT NOW, UH, RESERVE BALANCE, UH, IS UP AGAINST OUR, OUR HARD LIMIT IN TERMS OF OUR INVESTMENT POLICY.
UH, NO REAL CHANGES IN ANY OF THE BUDGETS, UH, BUT FOR THE ONES I MENTIONED EARLIER.
SO YOU'LL SEE THAT THE, UH, PERSONNEL NUMBERS HAVE COME UP A LITTLE BIT TO INCLUDE THE PRIME BENEFIT.
UM, AND THEN WE'VE INCLUDED THOSE CAPITAL ITEMS. UH, SO WE'VE, THIS IS,
[00:10:01]
I THINK THE 3,854 EDIT TO THIS PRESENTATION IN THESE NUMBERS IN THE LAST FEW DAYS, MAYBE AT 3, 4 30, 8 55.UH, BUT WE'VE GONE THROUGH AND TRIED TO MAKE SURE THAT EVERYTHING IS AS ACCURATE AS IT CAN BE.
I HAD A QUESTION ON THIS WAS A LINE ITEM ON ONE OF THESE SLIDES AS YOU'RE GOING THROUGH.
AND I SWEAR I'VE ASKED THIS QUESTION, SO I APOLOGIZE IF I'M REPEATING MYSELF.
SO, UH, WHEN SOMEBODY MAKES A TRANSACTIONAL PAYMENT ON, WITH, LIKE, IF YOU GO ONLINE TO PAY YOUR WATER BILL, WE HAVE TO PAY A PERCENTAGE OF THAT TO THE ACTUAL MERCHANT VENDOR.
AND SO WE PAY THAT OUT, BUT WE ALSO COLLECT PART OF IT.
WE'RE NOT COLLECTING ALL OF 'EM.
SO THERE, I THINK WE'RE CAPPED AT 3% IS WHAT THE STATE SAID.
MOST OF OUR VENDORS ARE AT 3%.
BUT IF THAT'S WHAT THAT LINE ITEM IS, BECAUSE ONLINE, FOR COMMERCIAL, NOT FOR RESIDENTIAL, THERE'S THE MUNICIPAL ONLINE PAYMENTS.
AND IT'S LIKE A BUCK 25 OR SOMETHING LIKE THAT.
ANY OTHER QUESTIONS ABOUT THAT? OKAY, WE'LL KEEP IT MOVING.
WHY IS THIS SHIFTING ON THE, UH, LEGAL STATE? THE SAME AS WHAT WAS PRESENTED PREVIOUSLY? WE HAVE THE PERSONNEL BUDGET, UH, AGAIN IN MUNICIPAL COURT.
UH, LET ME GET DOWN TO WHERE WE DO HAVE MAJOR CHANGES OR MINOR CHANGES, NOT REALLY MAJOR CHANGES.
UH, 4 0 8, UH, AGAIN, WE REFLECTED THE OFFSET TO THE, WHERE THERE WE GO, LICENSE PLATE READERS.
UH, WE'RE GETTING 120,000 IN REVENUE, GRANT REVENUE RELATED TO THAT.
SO THAT MADE US COMFORTABLE TO MOVE FORWARD WITH THAT UTV PURCHASE, UH, FOR, UH, AND THAT'LL, THAT SHOWS UP DOWN HERE IN FOUR 10.
FOUR 10, UH, THE 40,000 FOR THE, UH, FOR THE PROPOSED.
UH, BUT TO MAKE IT IN THERE, IS IT, WE ARE GETTING THE UTV? YES.
BUT, UH, SOMEHOW ON EDIT 40, 38, 45, WE APPARENTLY NIX IT, BUT IT'LL BE BACK IN THERE.
SO
SO, UH, WE'RE, THE WAY WE'RE GONNA, WE'RE GONNA PUT, UH, BAR LIGHTS ON IT, UH, SIREN.
UH, THERE'LL BE A DECK ON THE BACK SO THEY CAN LOAD A STRETCHER, BUT IT'LL BE OPEN FOR USE BY ANY PUBLIC SAFETY DEPARTMENT.
SO, IS IT, GLAD I PUT THAT BACK IN YOUR YEAH.
DO WE GET THE TEST DRIVE, YOUR HONOR?
THIS IS THE TRANSFER BACK TO EQUIPMENT REPLACEMENT.
SO, UH, EVERY DEPARTMENT, IF YOU TAKE A LOOK, SO 40, UH, 48, 60 IS THAT LINE ITEM.
EVERY TIME YOU SEE THAT, THAT'S THE MONEY THAT'S BEING PAID BACK INTO THE EQUIPMENT REPLACEMENT FUND.
SO THAT WAS A BOTTLE OF FUN TOO, BECAUSE I LOST MY COMPUTER, IF YOU GUYS REMEMBER, DURING HURRICANE NICHOLAS.
AND SO EVERYTHING FROM 2018 TO 2022 HAD TO BE RECONSTRUCTED.
UM, BECAUSE WE CHANGED THE ALLOCATION MODEL A COUPLE, WE TWEAKED IT FROM 5% TO 10%, 15% ONE YEAR, THEN BACK TO 10%.
SO FIGURING OUT HOW TO GET THAT ALL BACK IN BALANCE WAS A, WAS A BALL.
SO GOOD TIMES, UH, FOUR 11 STREETS AND DRAINAGE, UH, EVERYTHING STAYED THE SAME WITH THE EXCEPTION OF THE PERSONNEL NUMBERS.
UH, WE DID CLEAN UP, WE FOUND, UH, THANKS, THANKS TO OUR LOVELY, UH, CLEAR GOV SYSTEM.
EVERYTHING WAS TING UP AND DOUBLE ENTERING.
SO, UH, ANGEL AND COREY THIS AFTERNOON, FIGURED THAT OUT.
SO EVERYTHING SHOULD BE THE ACTUAL AMOUNTS.
IF YOU SEE ZEROS HERE, UH, OR A HIGH LINE ITEM, 'EM, LIKE RIGHT HERE WHERE YOU SEE A NUMBER, THOSE NUMBERS MATCH OVER HERE.
WE JUST, WHEN WE WERE DOING LAST YEAR'S BUDGET, BECAUSE WE WERE UNDER THE GUN FROM BARREL, WE JUST LUMPED SOME SINGLE LINE ITEMS WITHOUT GOING INTO DETAIL.
AND SO THAT'S WHAT'S REFLECTED THERE.
UH, THIS TALKS ABOUT THE CHANGE THAT WE TALKED ABOUT WHERE WE'RE GONNA LOOK AT THE RIF IN, UH, IN FLEET AND OUTSOURCING.
SO THAT NUMBER MAY BE LOWER OR HIGHER.
WE'RE TRYING TO NEGOTIATE A COUPLE OF DEALS RIGHT NOW TO BRING THAT BACK.
AND WHAT WE WANT TO DISCUSS BEFORE WE GET INTO THE NEXT WORKSHOP.
UH, WE DO INCLUDE THE MOWING SYSTEM, UH, AND THE TRAILER WHERE THOSE GOT PUT BACK IN, UH, FOR JOHN'S GROUP.
UM, AND SO WE'LL BE MAKING THOSE CHANGES, UH, ACCORDINGLY.
IN TERMS OF 13, THIS IS OBVIOUSLY WHERE THE RUBBER MEETS THE ROAD IN TERMS OF A CHANGE TO SOLID WASTE AND
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GARBAGE SERVICE.AND SO VERSION ONE IS MAINTAINING GARBAGE SERVICE AS IT IS.
AND VERSION TWO IS OUTSOURCING IT AFTER A SIX MONTH SPEND DOWN.
UM, WE KNOW THAT'S NOT POPULAR, BUT WE WANTED YOU GUYS TO SEE WHAT THE NUMBERS REALLY LOOK LIKE.
SO, AND THERE'S THE BOTTOM LINE, AGAIN, LIBRARY, NO MAJOR CHANGES, PARKS, NO MAJOR CHANGES.
UM, AND THEN THE, UH, NON, THIS IS THE NON-DEPARTMENTAL WHERE ALL THE, UH, THE WASHOUT HAPPENS BETWEEN ALL THE DEAD DRAWINGS AND TRANSFERS TAKE PLACE.
SO WE'VE MAINTAINED EVERYTHING OVER THERE, UH, JUST LIKE IT WAS PREVIOUSLY PRESENTED.
SO, ANY QUESTIONS? AND AGAIN, WE WOULD LIKE TO BRING THIS BACK TO YOU GUYS ONCE WE HAVE A LITTLE BIT BETTER DEFINITION.
UH, I CAN TELL YOU THAT WE'VE RUN, I'VE RUN FOUR MODELS ON PRICING.
JOHN'S RUN FOUR OR FIVE MODELS ON PRICING.
UH, WE'RE GONNA SIT DOWN TUESDAY AND MAKE SURE WE'VE GOT OUR DUCKS IN A ROW AND KNOW WHAT THOSE NUMBERS ACTUALLY ARE BECAUSE, UH, WE START ON THE LOW END AT A $38 FEE AND GO UP FROM THERE.
SO TO KEEP IT IN THE HOUSE, LET ME SCROLL BACK UP.
ANY OTHER QUESTIONS ON THE BUDGET BEFORE I LAUNCH INTO THE, UH, THE FUND TAX DISCUSSION? EVERYBODY'S FAVOR? NO.
AND I DON'T MEAN TO GIVE ANYBODY DELIRIUM THERE.
SO, UH, WAIT, YEAH, WHY DO I KEEP, OKAY, THERE WE GO.
[IV. BUSINESS ITEMS]
UH, WE'RE EXPERIENCING A DIFFERENCE IN PRELIMINARY VALOR VALUE.IF YOU RECALL, IN JUNE AND JULY WHEN WE PRESENTED NUMBERS TO YOU, WE WERE PREDATING EVERYTHING ON EVALUATION OF JUST NORTH OF $1 BILLION.
UH, THAT'S BEEN DIALED BACK SIGNIFICANTLY.
UM, THANKS IN LARGE PART TO A LOT OF PROTEST.
AND THEN WHAT APPEARS TO BE, UH, A MODEL OF ACQUIESCENCE ON THE PART OF THE A ERB WHEN IT COMES TIME TO THE FINAL CHALLENGES THAT GO TO STATE COURT.
SO, UH, WHEN WE SET OUR NUMBERS LAST YEAR, WE SET A NUMBER OF 9 49, UH, IN TOTAL VALUE TAXABLE AND SET OUR REVENUE BENCHMARK AGAINST THAT NUMBER.
AND THE ACTUAL NUMBER IS NINE 30.
SO THAT'S A 20 MILLION OR ALMOST A $30 MILLION SWING, UH, WHICH HAS RESULTED IN LAGGING REVENUE THIS YEAR.
UH, IN ORDER TO TRY AND HEAD THAT OFF THE PAST, UH, WE'RE ACTUALLY LOOKING AT A, AT A VALUE FROM, THEY TOLD US 9 78 WOULD BE OUR NUMBER THIS YEAR, BUT WE'RE ACTUALLY PREDICATING IT ON THIS NUMBER OF 9 49 OF TOTAL VALUE TO SET THAT NUMBER AGAINST, UM, BOTH OF WHICH, UH, 'CAUSE OF THE WAY THINGS WORK.
THEY CALL IT TRUTH IN TAXATION, BUT WE ALL KNOW THAT THAT'S THE BIGGEST LIE IN TEXAS.
UM, WE'RE AT A PLACE NOW WHERE WE'RE GONNA SAY THAT IT'S ACTUALLY 9 49 OF TOTAL TAXABLE VALUE.
THERE'S STILL $21 MILLION IN, UH, IN, UH, I GUESS DIFFERENCE BETWEEN WHAT THE BOARD SAYS AND WHAT THE PEOPLE ARE CLAIMING.
UH, WE WROTE THAT DOWN TO JUST OVER 9 49 TO COVER OUR BASES.
SO, UH, WITH THAT SAID, UH, THE VOTER APPROVED TAX RATE IS WHAT WE'RE RECOMMENDING THIS YEAR.
UH, IT DOES REPRESENT A HALF A PENNY INCREASE IN THE ACTUAL RATE THAT HOME OWNERS WILL EXPERIENCE.
UH, WE'RE ASKING TO GO TO 4 7 1 4 7 1 7 5 7, UH, OPPOSED TO 4 6 5 0 0, WHICH IS WHERE WE'VE BEEN AT FOR THIS PAST YEAR.
UH, NOW BECAUSE IT'S CALLED TRUTH AND TAXATION, WE'RE GOING UP HALF A CENT, BUT WE ACTUALLY HAVE TO SAY THAT WE'RE GOING UP 1.60 CENTS.
UM, BUT THAT'S WHAT THE, THAT'S THE WAY THE RULES ARE WRITTEN.
SO, UH, WE KNOW THAT THIS IS NOT WHERE EVERYBODY WANTS TO BE.
UH, WE HAD A GOAL SET TO KEEP LOWERING AND PUSHING THE RATE DOWN, UH, BUT THE VALUATION ISN'T PARTICIPATING IN THAT.
SO THAT SAID, OUR NUMBERS THIS YEAR BASED UPON THAT, UM, LIKE, EXCUSE ME, SORRY, UH, LOOK LIKE THIS.
UM, WE'VE DIALED THIS NUMBER BACK EVEN FURTHER TO THE 4 0 3 0 4 THAT YOU SAW IN THE ACTUAL REVENUE PROJECTION, UH, BASED ON OUR EXPERIENCE THIS YEAR.
SO WE'VE TAKEN THIS NUMBER, TOOK OUT THE ADDITIONAL 21 MILLION, AND WE PROJECT OUR REVENUE BASED ON THAT NUMBER, NOT THAT NUMBER.
SO, UM, THAT'S WHERE WE STAND, THAT'S WHAT OUR REQUEST IS.
WHEN YOU MAKE YOUR VOTE HERE IN JUST A FEW MINUTES, WHAT DOES THAT LOOK LIKE? UH, YOU KNOW, WE'VE DONE A REALLY GREAT JOB OF INCREASING THE VALUE, BUT IT SEEMS LIKE WE'VE PLATEAUED OVER THE PAST THREE YEARS.
UH, WE'VE INCREASED FROM 2025, UH, TO NOW ALMOST 600%, BUT WE SEEM TO HAVE HIT A WALL.
AND SO, UH, THIS IS THE TAX LINE TREND.
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CAN SEE, WE'VE DONE A REALLY GOOD JOB OF BRINGING IT DOWN.WE HAD THAT ANOM, I KNOW WORDS LIKE THREE OR FOUR
UH, BUT THEN WE'VE BEEN ON A DOWNWARD SLIDE UNTIL THIS YEAR AND WE'VE JUST GOT A SLIGHT UPTICK.
BUT, UH, I'M A LITTLE CONCERNED THAT WE'RE SEEING COMPRESSION AND WITH EVERYTHING THAT'S GOING ON IN AUSTIN RIGHT NOW, WE MAY SEE COMPRESSION ON THE EXPENDITURE SIDE AS WELL.
SO, UH, THINGS ARE GETTING TIGHT AND NORMALLY GONNA GET TIGHTER IS WHAT, UH, WHAT I'M PROJECTING.
ANY QUESTIONS ON THE TAX RATE? YEAH, HOW DID THEY GET $200 BILLION OF THE RATE THEY FUND
WELL, I'LL BE REAL HONEST WITH YOU.
UH, WE'RE NOT EXCITED, UH, ABOUT THIS.
WE REALLY THOUGHT WE WERE GONNA BE, I, I HAD US INITIALLY PEGGED AT, UH, A NUMBER OF BELOW FOUR, FIVE.
I THOUGHT WE WERE GONNA BE AT 4 4 9.
UH, AND INSTEAD WE'RE BACK UP.
DID THEY GIVE YOU WELL, I KNOW THEY DIDN'T.
I, WELL, AS FAR AS THE APPRAISALS, UH, SO JUST FROM A PERSONAL LEVEL TOO, THAT, SO I SPENT TWO WHOLE DAYS DIGGING, TRYING TO FIGURE OUT HOW WE GOT THE NUMBER THAT WAS ON.
SO WE GET THE FORM THAT LOOKS LIKE THIS EVERY YEAR, AND THIS IS THE NUMBER WE'RE SUPPOSED TO SET AGAINST, AND THAT'S THE NUMBER WE SET AGAINST LAST YEAR.
AND WE ENDED UP AT A NUMBER NOT EVEN THERE.
WE ENDED UP AT A NUMBER LOWER.
AND SO WHILE I WAS DIGGING, UH, TRYING TO FIGURE IT OUT, IT JUST APPEARS THAT IF YOU WAIT LONG ENOUGH, THEY JUST ACQUIESCE.
AND IF YOU THINK YOU'RE GONNA FILE A CASE, THEN THEY JUST GO AHEAD AND WRITE IT DOWN.
I GOT A LITTLE BETTER EXPLANATION THAN THAT, BUT BASICALLY THE BLANKET APPRAISALS JUST DON'T WORK.
AND THAT'S WHAT WE'RE GIVING WITH, I'M ASSUMING AT FIRST YES.
THAT THEY'RE SAYING A SQUARE FOOT VALUE REGARDLESS OF WHERE, REGARDLESS OF CONDITION, REGARDLESS OF IT'S ALL EQUAL IN REALITY, WE KNOW THAT'S NOT TRUE.
THAT OLD LOCATION, LOCATION, LOCATION COMES BACK.
SO I WOULD SAY THAT THE, UH, YOU KNOW, THE STATE CAME IN, WAS IT TWO YEARS AGO AND FORCED THEM TO AUDIT AND UPSCALE AND EVERYBODY SAW THEIR VALUES JUMP, YOU KNOW, IN SOME CASES 400%.
IT'S DONE A DISSERVICE TO EVERYBODY BECAUSE IT'S CREATED A LOT OF UNCERTAINTY IN HOW WE ACTUALLY FORECAST REVENUE AND BUILD OUR BUDGETS.
INVESTOR SALES HAVE AIDED IN THAT AS WELL.
NO, IT'S, IT'S, UH, KIND OF A SCARY TIME.
SO YOU'VE BEEN UP TO 88 LATELY.
SO I'M SURE YOU TOLD US SO PER A HUNDRED THOUSAND DOLLARS.
YEAH, SO PER A HUNDRED THOUSAND DOLLARS, YOU'RE SEEING A, A NET INCREASE OF ABOUT A NICKEL AND A HALF, WHICH COMPOUNDS.
SO IF YOU'RE AT A A HUNDRED THOUSAND DOLLARS IN THE PROPOSED RATE, YOUR TAX BILL'S GONNA GO FROM RIGHT AT 4 55 TO 4 71.
SO I'D LIKE TO SAY HALF A TAKE A GUESS, BUT WE KNOW THAT'S NOT FAIR ANYMORE.
AND THEN OF COURSE, THREE HALF GALLONS OF BLUE BELT.
THREE HALF GALLONS OF BLUE BELT
SO, WELL, I GUESS THE FACT THAT PROBABLY NOBODY IN THE ROOM HAS SEEN, HAS SEEN MINIMAL AMOUNT OF DECREASE IN ANYTHING.
TO EXPECT THAT WE COULD CONTINUE THAT DECREASE WAS PROBABLY A PIPE DREAM.
MY MARKET VALUE WENT DOWN 3000, SIR.
I'D LIKE TO KNOW HOW THAT'S THE DIFFERENCE.
I ALWAYS TAKE MINE AND DO MY OWN TAXES TO SEE WHAT THE DIFFERENCE IS.
SO MY TAXES AT THE, THE RATE THAT'S PROPOSED, IT'S ABOUT $30 MORE THAN IT WAS LAST YEAR TO THE CITY OF C CLUTE.
NOT THE, ALL THE OTHER, OH, SAY NOT ALL THE OTHER TAXES IS JUST
[00:25:01]
CITY OF INCLUDE.THAT'S, THAT'S HOW I FIGURE OUT WHAT I'M VOTING FOR IS HOW IT AFFECTS MY TAXES.
MY TAXES ARE PRETTY HIGH TOTAL.
I, I WOULD LOVE TO TELL YOU, YOU COULD DIAL IT BACK, BUT WE, WE DON'T HAVE THE FLEXIBILITY.
OF COURSE, EVERYBODY ELSE IS GONNA KNOW IT'S THE UTB THAT RUN THE TAXES OVER.
SO THAT'S EXACTLY WHAT IT WAS.
THAT'S ALL YOU'RE GONNA HEAR ABOUT.
WHERE DO WE GO FROM HERE? YEAH, THAT'S
IT'S A $12 MILLION QUESTION CONSIDERATION.
THE POSSIBLE ACTION TO TAKE A RECORD VOTE ON THE PROPOSED TAX RATE OF 0.4 7 1 7 5 7, WHICH IS A TAX RATE INCREASE OF 1.6%, WHICH IS EQUAL TO THE VOTER APPROVAL TAX RATE TO BE CONSIDERED AT A FUTURE MEETING.
TONIGHT IS JUST A RECORD VOTE.
SO, UH, DO I NEED A MOTION FOR THAT? YOU DO NEED A MOTION? YES, SIR.
ARE WE MAKING A MOTION TO, TO PROPOSE APPROVE IT OR TO GIVE Y'ALL MORE TIME TO LOOK AT IT? OR NO, THIS IS, SO THIS IS THE PRELIMINARY VOTE ON THE TAX RATE.
THIS WILL BE PUBLISHED IN THE PAPER.
YOU DO HAVE TO MAKE A MOTION TO APPROVE THIS TAX RATE AS THE POSTED RATE.
YOU CAN RAISE IT OR LOWER IT ON FINAL ADOPTION.
BUT THIS IS THE, NO, THIS IS THE ONE THAT GETS NOTICED TO EVERYBODY AND YOU'LL MAKE A FINAL DECISION LATER THAT YOU DO NEED TO TAKE A RECORD VOTE.
SO WHAT, WHAT WOULD THE MOTION NEED TO SAY THAT NEEDS TO READ EXACTLY AS IT IS ON THE COMMENT AGENDA? YES.
WHOEVER MAKES, WHOEVER MAKES THE MOTION NEEDS TO READ WHAT IS WRITTEN IN THE, WHAT'S OUR CHANCES THAT IT CAN GO DOWN.
IS THAT LOOKING VERY SLIM? UH, I WOULD SAY THAT IF YOU WOULD LIKE TO PURCHASE A MOTION FOR PROPERTY IN ARIZONA, I'VE GOT SOME, I GOT A GREAT DEAL.
WOULD YOU READ THAT WHOLE PART? OKAY.
IF NOBODY ELSE IS GOING, I'M NOT FOLLOWING
UH, I WOULD MAKE A MOTION TO TAKE A RECORD VOTE ON A PROPOSED TAX RATE OF 0.4 7 1 7 5 7, WHICH IS A TAX RATE INCREASE OF 1.6%, WHICH IS EQUAL TO THE VOTER APPROVAL TAX RATE TO BE CONSIDERED AT A FUTURE CITY COUNCIL MEETING FOLLOWING A PUBLIC HEARING.
I HAVE A MOTION BY COUNCILMAN CHRIS, DO I HAVE A SECOND? I'LL SECOND.
COUNCILMAN PERSON? MADDOX AYE.
THE NEXT ITEM WILL BE CONSIDERATION OF POSSIBLE ACTION TO SCHEDULE THE PUBLIC HEARING FOR THE PROPOSED TAX RATE INCREASE AND ANNOUNCED TIME, DATE, AND LOCATION OF THE PUBLIC HEARING.
WE HAVE A RECOMMENDED DATE, UH, THURSDAY, SEPTEMBER THE FOURTH AT 6:30 PM DO I HAVE A MOTION AS SUCH? I WON'T BE SEPTEMBER 4TH.
IS THAT IT, THAT WE GET THAT FOR THE THURSDAY AFTER? IS IT THURSDAY AFTER THURSDAY AFTER LABOR DAY.
VAL, DO I HAVE A SECOND? I'LL SECOND.
SECOND BY COUNCIL PER MADDS DISCUSSION.
NEXT ITEM IS CONSIDERATION OF POSSIBLE ACTION TO SCHEDULE AND SET A PUBLIC HEARING ON A PROPOSED BUDGET AND ANNOUNCE DATE, TIME, AND LOCATION OF THE PUBLIC HEARING.
RECOMMENDED DATE, THURSDAY, SEPTEMBER THE FOURTH, 2025 AT 6:30 PM IT INCLUDES CITY HALL TO HAVE A MOTION AS SUCH.
MADDOX, ANY DISCUSSION? HEARING NONE.
ITEM D, ANNOUNCEMENT OF THE SCHEDULED DATE FOR THE ADOPTION OF THE BUDGET ORDINANCE FOR FISCAL YEAR 2025.
2026 WILL BE HELD ON THURSDAY, SEPTEMBER THE FOURTH, 2025.
[00:30:01]
THAT'S JUST AN ANNOUNCEMENT.AND THEN ALSO AN ANNOUNCEMENT OF THE SCHEDULED DATE FOR THE ADOPTION OF THE TAX RATE ORDINANCE WILL BE HELD ON THURSDAY, SEPTEMBER THE FOURTH, 2025 AT 6:30 PM NEXT ITEM
[V. NOTICE/ANNOUNCEMENTS OF UPCOMING EVENTS AND MEETINGS]
WILL BE NOTICING ANNOUNCEMENTS OF UPCOMING EVENTS AND MEETINGS, JOINT PUBLIC HEARING AND REGULAR COUNCIL MEETING.THURSDAY, AUGUST 14TH AT 7:00 PM REGULAR COUNCIL MEETING.
AUGUST 28TH, 2025 AT 7:00 PM LABOR DAY HOLIDAY CITY OFFICES CLOSED MONDAY, SEPTEMBER THE FIRST ITEM D, PUBLIC HEARING ON BUDGET AND TAX RATE.
ROLL CALL, VOTE TO ADOPT BUDGET ORDINANCE, AND THEN TAX RATE ORDINANCE ON SEPTEMBER THE FOURTH, 2025 AT SIX 30, A REGULAR COUNCIL MEETING, SEPTEMBER THE 11TH, 2025 AT SEVEN.
AND A REGULAR COUNCIL MEETING ON THURSDAY, SEPTEMBER THE 25TH, 2025.
AND THEN AFTER THAT, THE NEW BUDGET CYCLE STARTS.
AND THE NEXT ITEM WOULD BE ADJOURN.
COUNCILMAN LOPEZ MAKES A SECOND DISCUSSION.
HEARING NONE, I'LL ENTERTAIN A VOTE.