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Good evening. >> tonight's invocation. >> will be given by pastor.

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felix bomb. Rain of. Grace way church. >> pastor. Come on up. And then

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everybody let us pray. Heavenly father. We acknowledge. You as a father. Father of.

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>> all creation. And today we bow before you. We ask that. Your name be hallowed in our

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lives, in our families, in our city your name your glory be seen and honored in every heart

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and every life. We ask lord today that your kingdom come your rule, your will be done in

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this city of round rock and the lives of every member of the council and all the council

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officials. Let your will be done in every city and every home that your will be done in

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our schools that your will be done in our nation. Lord pray that you will give us this day

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as the mission begins you would give wisdom to your sons and daughters as they deliberate.

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as they answer questions we ask do you guide them by the spirit of wisdom and your will will be

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established and guide their thoughts. We pray lord that you will forgive every sin, every

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iniquity, every unrighteousness, every injustice and you will guide

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from every error, deliver from every evil. Lord, we pray that your glory be seen over this

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city. Guide this city with your watchful eyes that be provision for everything that is not

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available humanly that you will give divinely divine wisdom, divine guidance in all things

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in every way. We just thank you today for the opportunity to meet and to seek advancement of

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this city. We pray you will help in every areas and that your name alone be glorified

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and you bless your children as they continue to serve the city and your purpose in this

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city with thank you we love you our god in jesus mighty name amen. Amen.

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>> thank you carl. >> space bike. City council. >> meeting to order and please

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call the roll. Mayor morgan here. Mayor pro tem montgomery here. Council member. Lee here

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.council member. >> flores here. Council member fleming here. Council member

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ortega here. Council member stevens here. I don't know if you're able to stand with me

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for the pledges. I pledge allegiance. To the flag. Usa, to. America and to the

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republic. For which it stands one. Nation under. God, indivisible.

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>> justice for all. Honor the. >> texas one a pledge of allegiance.

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>> to me. Texas one state. >> 100 indivisible. All right. Citizen communication. Any

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system wishing to speak during citizen communication. Guardian item.

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>> on. Or off. >> the agenda may do so after completing the required

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registration card. All comments must be no more than three minutes in length per. Section

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2-265 of the code of ordinances 2018 additions any comments? Guard arms not on the post gym

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may not be discussed or respond to by city council person state law. All right. I have two that

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are not on any agenda item mitchell snyder.

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there's no. Such thing. As success without a successor. Is a phrase.

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>> that I learned at. 3826 wheeler. >> avenue baptist church. Uh.

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>> houston. >> texas 77004. We're reverend doctor. Marcus de. Cosby was my

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pastor. And with. >> that he also taught that you can.

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>> have a three point alliterative alliterative. Message so you can.

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>> start. It all. >> with uh, you know, bebe. Or uh, r or whatever. You can

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help. So with. That I. >> came up. >> with the. Phrase there is.

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no such thing as success. Without a. >> successor.

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>> without a struggle. And without a system. So in this last uh, two.

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>> minutes and. 18 seconds. >> I just want to talk about systems and um. You know, you

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can see systems everywhere. There there it's it's everything. Uh, you can look up

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at the sky at night and uh, you'll see a. Solar system. Um. >> you can look at the ground.

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the dirt and get bitten by. Ants and uh, you can go out. >> but it's actually a system.

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you weren't. >> destroyed by chance. You were.

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>> bitten by. >> a system. Or you can look to your. Left.

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>> you can look to your right. And you can see a. Political system. And um. But yes,

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systems. Are neutral. They're not good or bad. >> it's like a weapon. And so.

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the person I wanted to. Hurt person. >> I wanted to honor. With

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that. >> uh. That talks about. >> systems works.

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>> not a person. You ever read the dharma? You ever seen it? It's it's pretty decent. It's

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got some good. Things and so. On. >> the back is as. Far as.

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>> I got. Uh. >> the word dharma refers to the. Inherent characteristic.

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of something. So this isn't. Praising jesus. But it does speak about some things.

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>> that are similar. To that. Uh. >> but you.

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>> can see systems everywhere. Uh, bruce lee had a. System, uh, for. Fighting.

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>> uh. >> jeet kune do. So the art of. Intercepting fist and it's

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it's. >> a. Whole conglomeration. >> of things. Another person

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that had a. System uh, kobe. Bryant have you. Ever heard of the mamba mentality? It's it's

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amazing if you. Ever need an inspiration, if you ever. Want to.

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>> uh. >> you know, be. Motivated to. >> fight through whatever pain.

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>> you're going through. He talks. >> about how.

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>> the dream. Is not that like you. >> get. Success the. Dream is.

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>> not the dream. No, the dream is when you're in. Complete pain. And you still rise up and

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you still. Keep going. That is the dream right there. It's not about. Like, um you.

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>> know, ribbons. And titles and all this other stuff. It's about like a pain. So you must

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have. A struggle within your system. Um, and then. Finally I. Just wanted to mention, uh.

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scott adams. I don't know if y'all any of y'all are. Old enough. To have watched or.

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read, um, delivered. But it's. >> it's an. Amazing like. >> you. Know, cartoon. It's

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funny about. Politics or you know, office politics. But then. His main message through

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his life that I got. Was that like. Systems over goals you have to have a system and.

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>> to. The day that he died he. Was he. >> could barely breathe. He

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still went out like a gangster. He's still. >> went out.

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>> like a. Real tough guy and still being positive and giving. Everything that he had.

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thank you. >>, carlos balderas. Good evening.

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>> I come before you today because of the isn't being made in washington concerning title

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six and eeo title six has not been repealed but the current administration has moved away

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from disparate impact an important tool for examining policies that appear in neutral

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paper but produced unjustified discrimination effects. Now why should this matter to citizens

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of real rock? Because because title six touches on institutions and services

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people depend on every day to make sure that things are not including discrimination or

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that poses any type of financial burden on people. These areas involve education,

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hospitals and health care, public transportation and city projects. The other thing

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I want to touch on is uh, eo and the administration's um emphasis on merit. Now let me

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be clear merit itself is not the problem. People should be hired promoted because of their

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quality qualifications and capabilities. The danger comes when government treats the work

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merit as an as it eliminates the need for subverts first of all rights um the protections

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for generations americans have always relied on epo and women have relied on minorities have

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relied on it uh the elderly have relied on it. People with disabilities have relied on it

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all the system merit based does not automatically make the system fair if the if the

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criteria determining merit applied is it is applied inconsistently then we're going

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to have a whole lot of discrimination being had merit an equal opportunity should

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work together not compete against one another. So so the council member what we're as

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we're looking uh for council number 22365 is a couple action items which I have handed to

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you all but I'm just going to touch on two right now. The other one you can read later.

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one of them involves the city's reaffirming of title six making sure that anything that we do

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as a city does not place any type of discrimination with regards to me the decisions are

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made as well as looking at making sure that there's not a high level of financial burden

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placed on people because of that. The other um the other part of that is know making

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sure that or some level of use applied um and on top of that making sure that decision

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makers um we require decision makers to document what actually means when making

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employment decisions objective qualifications, experience performance skills and job

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related requirements not subjective standards that can conceal discrimination. We

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should be able to believe merit and civil rights um at the same time a person should not

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receive a job simply because they racer sex but neither should a qualified american

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lose an opportunity because of race, sex, um sex, age, disability, national origin or

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any of the characteristic of. Um protected by the law. So rights has been rough has um

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should not change every four years um equal opportunities not lower the standard of merit

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it helps ensure equal opportunity uh equal americans good for opportunities to meet

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the standard. But you. Talk real quick um get us go.. >> the other. Topic I want to

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raise um. Is the thing regarding uh got to school road as got a school road has

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widened now there's been uh high level of congestion on um on that area in the morning in

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the afternoon and along with that you see hundreds of uh cedar ridge high school

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students walk in those corridors. Uh, of course there's no guardrails in and

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sidewalks, which creates a little, uh, risk for some of the students. There are other

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issues of accidents that could occur. My my, uh, request is that we reach out to cat metro

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to maybe see if there's opportunities to provide those students with some public

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transportation on those corridors going east and west to help hopefully, um, remove

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some of the congestion that students are placed in on the sidewalks. That could be an

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added risk, especially when you have a high level of traffic flow going on east and west of

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kind of school road now thank you very much. Thank you carlos. All right. That's all I

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have for items not on the agenda. Anyone else wishing to speak? All right.

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>> staff presentation z considered presentation department update from human

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resources department. Come on up, sandra. Good evening, mayor and council members. I'm here

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to report to you that the hr department is more passionate than. Ever to serve the people

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that. >> serve this great community. Our team loves.

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>> to serve with heart. We look for. >> different. Ways to partner

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with all. The departments and have positive. Interactions with employees. We come to

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them. And by the way. They're sitting. Right there those two. Roles supporting me. The h.r

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team shines. >> under pressure. They step. Up and make change happen. I

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want. >> to. Thank each. >> one of. Them for their

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commitment to great customer service and their focus on employee experience. I do have

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two. People that. >> I would like to. Recognize my name michelle reyes, my.

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assistant director. This woman has elevated this. Department to another level. Her

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leadership in operations has. Been instrumental and the key. To our wins this year tyler

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jarrow, my h.r. Manager, he. >> gives me peace. Of mind. And he manages. Benefits and

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compensation and. Serves as a as administrator. His knowledge and dedication help us offer

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our employees the best. Resources available and. >> they have one less thing to

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worry about and can focus on their work providing services. >> to our citizens. So thank

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you all. Our mission. Comes to life through serve. It's reflected in how we. Support

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organization. Engage our people, lead with respect. Listen to their voices. And

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empower them to succeed. Thanks. >> our current this is a

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workforce snapshot. Our current headcount. Is 1770. Employees that's composed of. Part time.

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full time. Temporary and seasonal. We have a workforce that has a healthy mix of newer

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talent and experience employees. Our workforce is relatively young but

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experienced an average age of 41. Combined with an average tenure of 8.1 years suggests

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that employees are building meaningful careers with the city, not simply just passing.

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>> through.. >> so roughly. 70% of the workforce has less. Than ten

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years of service. That's important. >> to note. It suggests that

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the city. Has brought in a. Significant amount of. Newer talent while maintaining a core

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group of long tenured employees who carry valuable institutional knowledge. At the

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same time, we have more than 200 employees with 15 or more. Years of service. That creates

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both an opportunity and responsibility for us developing our newer employees

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while making sure we capture the knowledge and experience of our long tenured employees.

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that's why retention, leadership. Development. >> succession planning and

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knowledge is crucial to transfer that to continue to be important areas of the focus of

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hr. Year. Today we have 19 employees. That have retired. More importantly. 21% of our

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work. A regular workforce is retirement eligible. That is, more than 1 in 5 employees. Our

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responsibility is to be prepared by identifying critical positions and

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developing internal. Talent for hr. Workforce planning is about ensuring we have the right

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talent ready when those transitions occur. And as you can see um on the retirements

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year to. Date fire. Police and public works are the highest ones. Same with eligible to.

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retire you have those three bigger. Departments up there. Another indicator we monitor

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closely is employee turnover. Year to date we experience 93 separations with an average

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monthly turnover of 9.5%. While turnover is normal part of any organization, we look beyond

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the number to understand where are we losing talent, why employees are leaving and.

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whether they're trends we need to address. The national average for the. Public sector

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is. 1.5 and this doesn't exclude education. And so right now uh we're doing pretty well

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and we're trending to be under the national average. Attracting qualified

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candidates. Require us to go beyond simply posting a vacancy waiting for applicants. We're

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taking a more proactive approach meeting candidates in the community, straining our

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presence in social media, developing internship and school partnerships and

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building our future talent pipeline. At the same time, we're focused on telling our

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story and positioning the city as an employer of choice not just a place to find a job

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but a place to build a career and serve our community. Attracting talent isn't only

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about whether we recruit it's about why someone chooses us. People want more than a job.

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becoming an employer of choice isn't one initiative. Or a benefit. It's the entire

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employee experience. It's about competitive. Compensation and benefits. Strong leadership

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coming from city council members and. >> our. Leadership team,

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opportunities to grow employees ,having a voice and creating a culture where people feel

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valued and connected to our mission. The city around rock offers something very powerful

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the opportunity to make a direct impact. To the community that we serve. Our goal is not

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simply to attract people to a job. We want to attract people that have a career for a

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purpose. Year today we received more than 20,000 applications and welcomed 531 new employees

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to the organization. While attracting candidates is important, we equally focus on

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creating opportunities for people who are already here with us. We promoted 72

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employees this year. Which speaks directly to the commitment to developing

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employees and providing opportunities to build a career here at the city. Recruiting

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great people is only the beginning. Once they're here we have to invest in their growth

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and give them the tools to be successful. This year we're really expanded our focus in

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learning and development. We're taking a more intentional. Approach identifying. Learning

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needs across the city, strengthening our. Supervisors. >> customizing training on

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needs of. Individual teams and expanding opportunities for our future workforce through

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internships we've also expanded e-learning for compliance training, allowing us to reach

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more efficiently and consistently well. We've been very busy but each of these

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efforts is an investment in our people and for the future of this organization. Investing in

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our employees goes beyond the professional development. It also means supporting them

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during the for the overall health, wellness and quality of life. This year we continue to

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focus on employee engagement through. Wellness events. Educational workshops and

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webinars that give employees tools and resources to support their well-being. Our focus

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moving forward is not simply to offer great. Benefits, but. To make sure that our employees

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understand them, that they value them and have the tools they need to make the most of

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them. Our onsite clinic is another way we're investing in our employees and families. It

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provides convenient access to quality care, encourages preventive health and reduces

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time away from work. It's a benefit that supports both the well-being of the workforce and

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the long term sustainability of our health plan. Raw care clinic has had a 1823 patient

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visits so far this year 788 people. Accessed care. And 140 of. Those were.

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>> new patients. Our utilization rate is trending upwards from previous years.

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supporting our employees also means to make sure that they have a safe workplace that we

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proactively manage the risk associated with delivering those services to the city. We

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continue to monitor workers compensation claims closely not only the number of claims but

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they're occurring and the types of injuries we're seeing. Our most common injuries continue

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to be strains cuts, punctures and scrapes, slips, trips and falls. Understanding those

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trends allow us to focus on our safety efforts one of the strongest indicators of the

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overall performance of our workers compensation program is the experience modifier. Html

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risk pool compares our loss experience against thousands a municipality that ensures a 1.0

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modifier represents average performance. Anything above 1.0 indicates losses. Above

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average. Our modifier is 0.30. The lowest modifier html offers. Even more

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significantly, we maintain the lowest possible. Modifier for the last. Five consecutive

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years that strongly reflects the safety practices. Practices.

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>> claims management. >> and commitment. >> of our departments and

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employees to maintaining is safe workplace. We accomplish a lot but there are a few

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initiatives I'm especially proud to highlight. One of our biggest accomplishments was

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implementing a new performance management system citywide. This was this was a year in the

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making and collaboration between hr and it team. We moved away from an outdated

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process. And introduced a more modern consistent approach one that gives a better foundation

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and meaningful feedback, accountability, employee development and performance

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conversations. We also continue looking at how we can stream the overall employee

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experience. And retention strategy. For the first time, employees received a total

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compensation statement at their home and a note from the city manager thanking them for

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their dedication and their commitment. The statement shows the full value of what the

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city of round rock. Invest in them. Not just their paycheck. But the total benefits and

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compensation. We also strengthen the safety net of our employees by adding paid

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parental leave and enhancing our long term disability benefit. Both are designed to

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provide greater support during significant. >> life transitions. Everything

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we talked about today leads us to where we're going next. Our workforce continues to change.

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hr must continue changing with it. Our focus isn't simply responding to today's needs. We

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must anticipate what our organization and workforce for tomorrow. The next chapter

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centers on four things being workforce ready developing our team. Modernizing how we

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deliver hr services and using data to make better workforce decisions. As we close, I want

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to thank mayor and council members for your continued support and investment in team

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round rock. Your commitment to the employees give us the opportunity to grow and succeed

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and to continue providing excellent service for our community together we're not

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only building a stronger work workplace but we're building a stronger round rock. Thank you.

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all right thank you sandra anybody have any questions or comments councilmember stevens.

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thanks sandra for that. And you've got to two new people relatively new people.

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>> in. Charge I think. >> you like doing a. Fabulous job. Um it's great to.

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>> see you both here. Um I do have two questions. So our interns do you track. How many

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.interns come. >> through an internship and then actually.

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>> turn. Around and apply for a job. Even if it's not like a specific number like 25% of

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them? 10%. >> well, I can tell you with this last internship I think

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there's about three okay. And there was like 19 of them so it's pretty good. Yeah really

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good yes. And then also I appreciate that. Total compensation uh statement that

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you did for the first time I think that it's really important for employees to see

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their total value, you know. Not just a dollar on a paycheck. And I'm just curious

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since it's the first time doing it how the. Feedback has been. Um, from.

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>> the employees. So far what I have heard and when people have told me it's been great they

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loved opening that get in it at. Home was. A different experience the way it was

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presented it was like in a big envelope. And it was colorful and beautiful city of round

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rock pictures and then just having that note from the city manager really thanking

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them for their efforts and then really being able to break in. You can see like if somebody

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took a vacation how much they got paid for that for their sick leave for their overtime

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and then. Get a total picture of. The real uh total compensation that you received

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from the city, you know, including benefits. I think. That's very important. I be

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curious. You already have a very, um. High retention rate. I'm just curious if there's any

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trend. Going forward. Um, related to. Employees seeing their. Whole the whole package.

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so I appreciate that. Thank you. Thank you. Councilmember ortega. Yeah I like. To ask the

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same almost. Same question. Here in. Reference to uh, internships. Uh, you're saying

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you're going to try to increase that number? Did I. >> hear that correctly. Of

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internships right. Well, we're trying to increase the people that we can hire from the

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internships but yes, we would love to have more this year we've expanded the internship

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program and my team just met with me and told me, you know what else they want to do for

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next year and they have really great ideas. I think the um the state or the nation is going to

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look at our program because we're thinking outside the. Box on how we can prepare them.

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we're even having orientation with the mentors that are going to have interns. To also train

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them on what an internship is and what they should be getting out of it. So I'm excited about

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that. Well thanks. >> for that and thanks for mentioning mentors because I'm

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a big proponent about mentors I think we all should be mentors um, to serve one way or another

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though. Because uh. They're they're the key to success in my in my idea. But the program

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you presented today was absolutely. Good right on. So I appreciate that in the hard

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work your department has put together on this. Thank you. Thank you.

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>> any other questions on the staff. Questions? >> councilmember fleming. I

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respect. Y'all's group. Um, it's so important for the health of the organization. And

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city. So I know y'all work really hard and appreciate everything you do. I just had.

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>> a quick. Question some of numbers person but when we were looking at the. Um turnover.

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rate and it was low but it said like seasonal. Was really about a third of the employees I

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think it was over 500 versus the 1700 employees. So do you. Look at.

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>> them differently for turnover? Is it year to year. >> or. Are you just removing

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them completely? How do you look at that. At turnover it's a monthly rate but we only take

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in consideration regular employee so that would be full time and part time. So seasonal

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wouldn't be included? No because they're just here for the season.

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>> that's why I. >> was. Wondering okay. Well thank you. Do you have a

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question? Um. >> mayor pro. >> tem I didn't have a

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question. I just wanted. To, uh. Let sandra. And the team know that. 72 promotions to.

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date is phenomenal. >> I think again. >> it speaks. To your.

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professional development. >> of the team and I think that's. That's awesome. So

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encouraged by that. Thank you I mean it's it's also the supervisors and the experts in

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every department that are willing to share that knowledge you know with with their team

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members. So you know our questions or. Comments over here. Yeah I just want to say

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thank you for all that y'all do and all the work you put in. And uh, as councilmember

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fleming said, just it's important for the health of the organization. So great job.

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>> to. All of you and your team. Thank you so much. Yep. >> good night. I wanted to say

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that by the way round rock have a good night. All right. Consent agenda items. Listed on

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the consent agenda are considered. >> to be routine by the city.

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council and be enacted by one motion will be no separate. Discussion of these items

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unless. Requested by a council member. >> in. Which event the item

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will be removed from the consent agenda. >> and. Considered separately.

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are there any. Items or questions there? I'll read the. Consent f1 consider approval.

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minutes from the august 13th, 2026 city council meeting f2 consider a resolution.

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authorizing murders to an agreement with paradigm traffic systems inc. For the purchase

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of traffic signal systems. >> and safety. Barrier products f3 consider a resolution.

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00:29:10,169 --> 00:29:13,606
authorizing mayor. Desk quantity adjustment change. Order number three with austin.

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engineering company. Inc. For the. Green line. Boulevard project. And that. Is all the

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consent. So I'll entertain a motion to adopt. The consent agenda. So moved. Second.

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>> motion made by councilman pegues and by the mayor. >> pro tem. Any other

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discussion and please pull the council. Council member lee. Yes.

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>> council member flores. Yes. Council member fleming. Yes. >> council member.

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>> ortega. Yes. Council member stevens. Yes. >> mayor pro tem montgomery.

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yes. >> mayor. >> morgan.

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>> yes. Resolutions g1 cancer. >> a resolution authorizing execution of an engagement.

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>> letter with rare law and associates. Plc for the appeal to district court of the

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project. Final order impact docket number 48836. You doing. >> that one?

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>> yes. >> this is an engagement letter um, with the law firm. That has

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represented us throughout the course of this case. This is the. Break case. Uh, with the

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mud regarding the city's wholesale water rates. This has gone through. The puc process

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and it was found that the city's rates were just unreasonable. The mud districts

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are now. Appealing this case. >> they're appealing to district court. Um, the city is

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not a party directly to this case but because we have an interest in it we are an

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intervener. So this engagement letter, um, will see the city um, well, to handle the

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legal fees through the appeal process of this case, it's the same firm they. Handled it.

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okay. >> questions and. A motion adopt the resolution.

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>> so moved. Second. Motion made by. Councilmember fleming. Second by councilmember ortega

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.any other discussion and please follow the council. Council member flores. Yes.

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>> council member fleming. Yes. Council member. Ortega. >> yes.

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>> council member stevens. Yes. Mayor pro tem montgomery. Yes. >> council member. Lake. Yes.

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>> mayor. Morgan. >> yes. >> to consider a. Resolution

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authorizing mayor dispute. Conti. Adjustment change order number. One with ap gulf states

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00:31:09,141 --> 00:31:13,246
inc. Doing. Business as. A dawson. >> and. Peterson construction.

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>> for the public. Safety training center phase two project. Good evening.

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>> mayor and council. This is, uh. Change order number. One for. Adolf and peterson. Uh.

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>> construction for public safety and. Training center. >> phase two. Um, the amount.

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>> is for 923,988. And $0.25. Um talked. >> about it. On um. Tuesday but

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we'll just. Reiterate the drivers to this cost or mother nature didn't do us any favors.

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good for the lakes bad bad for construction. So the truck had to be regraded completely. It

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was just a mess out there. We had some, uh, existing tilt wall refinishing that we have

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to do out there and then we have to install some master meters to monitor the usage on

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fire on the, uh, training side of the house. Um, be happy to report that we are at probably

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60% completion and we're still tracking to be completed at the end of march of 2027. So with

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that I'd be happy. >> to answer any questions. Questions.

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00:32:11,838 --> 00:32:19,946
>> councilman fleming. I just had a question since I wasn't here tuesday morning. Um so

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this is in addition to what the original. Budget was. Or are we still going to be coming in

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within budget and looking at the total project? Great question. Uh, council member so

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what we're doing this is going to replenish my own or betterment that's inside the

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contract. And so we have a strategic reserve outside of the contract still within

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budget that will replenish the owner betterment. Okay thank you. Any other questions every

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00:32:43,970 --> 00:32:49,242
time most of the resolution. So moved. Second. >> motion made by councilmember

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ortega same by councilmember stevens. Any other discussion. And please by the council.

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council member fleming. Yes. Council member. Ortega. Yes. >> council member stevens. Yes.

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mayor pro tem montgomery. Yes. >> council member. >> lee. Yes.

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>> council member flores. Yes. >> mayor. >> morgan.

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>> yes. >> thank you. >> officer g3 consider a

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resolution approving and adopting. Financial policies related to the budget. For

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fiscal year 2627. Good evening. Good evening again. Item g three. Is the resolution

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approving. >> and adopting our. Financial policies for.

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>> the. Upcoming fiscal year? Our financial. Policies are. >> reviewed and adopted

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annually. By the city council in. Conjunction with the annual operating budget. As I

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mentioned. Tuesday morning, just. One minor change is proposed for this year and I do

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have a. Presentation we will I'll briefly. >> walk. Through the policies

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just as a reminder. Of um. What is contained within our. Financial policies at least at

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a high level. So the purpose of our financial policies is really.

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>> to. Demonstrate our commitment to sound financial management, provide guidance on

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financial goals, demonstrate compliance with all state statutes, the city charter and

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follow good business practices and recommended and best practices in all the different

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aspects of finance that we. Do this chart and I'm going to read it to you shows just some

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of the topics covered by our financial policies which again are attached in the agenda

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packet for this evening's meeting. One of the topics covered is the annual budget.

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since the budget is on this item on this agenda for future consideration when I go ahead

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and talk about these guiding principles that the budget should address the council

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00:34:27,541 --> 00:34:31,878
goals and strategic plans we consider long term financial impacts so we don't look at

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00:34:31,878 --> 00:34:36,316
just what we can't afford but of looking at long term um, financial sustainability for

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00:34:36,316 --> 00:34:42,222
decisions made. Current revenues have to meet or exceed current expenditures. Um also

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00:34:42,222 --> 00:34:46,860
have some policies regarding administrative locations and personnel um which the fte

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00:34:46,860 --> 00:34:52,831
schedule is set as part of the budget and is adopted um in accordance with it as well. We

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00:34:52,831 --> 00:34:57,103
have a budget contingency plan laid out in our financial policies that will lay out um,

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00:34:57,103 --> 00:35:01,841
if we do get to a point where we need correct corrective action, we laid out exactly

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00:35:01,841 --> 00:35:06,613
what steps we will take and in what order we will take them. Um, hopefully this is a

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00:35:06,613 --> 00:35:10,830
contingency plan we won't ever need but did want to highlight we do um, have it thoughtfully

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00:35:10,830 --> 00:35:15,822
laid out in the financial policies as adopted annually by the city council looking at

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00:35:15,822 --> 00:35:20,693
revenues. We have revenues. Um, the financial policies are designed to promote a diverse

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00:35:20,693 --> 00:35:25,432
and stable revenue base to protect the city from revenue shortfalls. Looking at sales

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00:35:25,432 --> 00:35:31,337
tax, we have policies that limit our dependency on any single sales tax payer um, any

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00:35:31,337 --> 00:35:36,676
additional sales tax revenues that do exceed our limits set forth by policy will our

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00:35:36,676 --> 00:35:40,847
deposited into our gsfc or general cell finance capital where they can be used in

397
00:35:40,847 --> 00:35:48,487
future fiscal years to fund one time capital needs? We have some policies on expenditures

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00:35:48,487 --> 00:35:52,526
looking at appropriations and transfers, procurement policies, making sure that we

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00:35:52,526 --> 00:35:57,430
follow all federal, state and local laws on how we buy things. Um the formal approval

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00:35:57,430 --> 00:36:02,969
any item over $100,000 goes to the city council per our code of ordinances except for a

401
00:36:02,969 --> 00:36:07,273
specific pre-approved set on our authorized purchases list. I'll be bringing this to

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00:36:07,273 --> 00:36:11,244
council next council meeting on september the 10th. These are just certain routine planned

403
00:36:11,244 --> 00:36:15,215
purchases that staff does recommend the council for the authorize purchase list. Um

404
00:36:15,215 --> 00:36:20,587
items could always get pulled off if needed and those items don't exceed $350,000 per

405
00:36:20,587 --> 00:36:25,892
policy. We have financial policies looking at debt defining our debt options. Long

406
00:36:25,892 --> 00:36:31,130
term debt can only be used for long term capital improvements. We monitor and manage debt to

407
00:36:31,130 --> 00:36:34,968
maintain our um highest credit rating triple-a credit rating both for the general obligation

408
00:36:34,968 --> 00:36:41,641
as well as utility debt. Again, one minor change is on page 11 of the red line agreement

409
00:36:41,641 --> 00:36:46,880
attached to the packet. Um staff is proposing to decrease the capital replacement reserve

410
00:36:46,880 --> 00:36:52,520
in the sport center fund from $3 million to 1 million. That again we have a minimum fund

411
00:36:52,520 --> 00:36:56,423
balance requirement that we're maintaining the sports in our fund. So after that we've been

412
00:36:56,423 --> 00:37:01,280
holding $3 million for capital replacements. Looking at our potential liability staff is

413
00:37:01,280 --> 00:37:04,698
recommending to drop that to $1 million the 27 proposed. But it.

414
00:37:04,698 --> 00:37:08,870
>> does still. Leave that that excess fund balance sitting there in case something

415
00:37:08,870 --> 00:37:14,375
happens. Just really changing the um the designation of that and that's the only proposed

416
00:37:14,375 --> 00:37:19,580
change that we answer any questions? Questions. >> councilmember flores. You

417
00:37:19,580 --> 00:37:26,870
know kevin thank you. Just a comment mostly I appreciate um, the update and certainly this

418
00:37:26,870 --> 00:37:34,128
document has served us well for the last many years and kept us. Yes or pretty um. Very

419
00:37:34,128 --> 00:37:40,701
viable and very sound solid foundation. So so thanks for the continued work on it. Any

420
00:37:40,701 --> 00:37:46,700
other questions over here? Questions over here. Entertain a motion up the resolution. So

421
00:37:46,700 --> 00:37:48,843
moved. >> second. >> motion made by councilmember

422
00:37:48,843 --> 00:37:53,947
ortega. Second by councilmember stevens. Any other. Discussion and please pull the council.

423
00:37:53,947 --> 00:37:58,352
council member ortega. Yes. Council member stevens. Yes. >> mayor pro tem montgomery.

424
00:37:58,352 --> 00:38:01,889
yes. >> council member. Lee. Yes. >> council member flores. Yes.

425
00:38:01,889 --> 00:38:07,996
>> council member fleming. Yes. >> mayor. Morgan. Yes g4 consider a resolution.

426
00:38:07,996 --> 00:38:11,299
authorizing brush creek regional utility authority to execute. Financing agreement.

427
00:38:11,299 --> 00:38:16,304
>> with. The texas water development board. Mayor and council um, last night at the

428
00:38:16,304 --> 00:38:19,340
meeting of the brushy creek regional utility authority or area way board that considered

429
00:38:19,340 --> 00:38:25,480
this item and passed it um back in april 2023, the city council authorized bsr to submit an

430
00:38:25,480 --> 00:38:29,416
application for funding through the texas water development board funding to the state

431
00:38:29,416 --> 00:38:34,521
infrastructure implementation fund of texas or swift funding this agreement in particular on

432
00:38:34,521 --> 00:38:38,693
tonight's agenda for the third of four phases of financing from the texas water

433
00:38:38,693 --> 00:38:43,197
development board. These proceeds will be used to fund round rock share the phase two

434
00:38:43,197 --> 00:38:47,468
deep water intake project currently underway. Again this is a partnership of which round

435
00:38:47,468 --> 00:38:54,208
rock is a partner. This will be issuing $12.2 million again third of four plan phases this

436
00:38:54,208 --> 00:38:58,346
debt issuance has been in our long range financial plans, has been in our debt plan and the

437
00:38:58,346 --> 00:39:00,982
expenses associated with the capital outlay are included in the proposed. Budget.

438
00:39:00,982 --> 00:39:04,618
>> which will be under consideration later on this evening. I have to answer any

439
00:39:04,618 --> 00:39:09,624
questions you may have. Questions you're talking most of.

440
00:39:09,624 --> 00:39:14,629
>> the resolution. So moved. >> second. >> motion made by councilmember

441
00:39:14,629 --> 00:39:18,660
ortega's second by councilmember fleming. Any other discussion and please

442
00:39:18,660 --> 00:39:22,770
public council. Council member. Stevens yes. Mayor pro tem montgomery.

443
00:39:22,770 --> 00:39:26,390
>> yes. In council member lee. Yes. >> council member flores. Yes.

444
00:39:26,390 --> 00:39:30,578
council member fleming. Yes. Council member. Ortega. Yes. Mayor morgan. Yes.

445
00:39:30,578 --> 00:39:34,848
>> thank you. Gh5 consider a resolution authorizing our disputed real. Estate contract

446
00:39:34,848 --> 00:39:40,454
with atv ranch company lte. >> for the purchase of an 8.085 acre. Parcel required for.

447
00:39:40,454 --> 00:39:44,659
construction of the. >> proposed kenny fort. Boulevard segment five. Roadway

448
00:39:44,659 --> 00:39:50,531
project. Good evening, mayor and council. Good evening. This is for our segment five of

449
00:39:50,531 --> 00:39:56,137
kenny fort boulevard. Uh, the project is under design right now. Uh, this project will, uh,

450
00:39:56,137 --> 00:40:01,475
extend kenny fort which currently as you see right here heads north at a dead end that

451
00:40:01,475 --> 00:40:07,810
all centers we will take segment five from old sellers boulevard will head north like

452
00:40:07,810 --> 00:40:13,787
this and then it will turn in right at 112. Uh, the item before you is right of way

453
00:40:13,787 --> 00:40:17,758
acquisition for the area in turquoise right here. It's a little bit over uh, eight

454
00:40:17,758 --> 00:40:23,197
acres. Total cost is $2.8 million. There's still. >> a few more parcels that we

455
00:40:23,197 --> 00:40:28,202
need to acquire as part of kenny for segment five. Uh, but like I said, we're under design

456
00:40:28,202 --> 00:40:32,206
and we'll continue with that. And then once we get through the design and all the right of

457
00:40:32,206 --> 00:40:36,844
way acquisition, uh, then we'll look ahead for construction but recommend approval of this

458
00:40:36,844 --> 00:40:41,883
right away acquisition uh, from a ranch company, uh, for the kenny for segment five roadway.

459
00:40:41,883 --> 00:40:47,287
we're happy to answer any questions. Questions. Any time most.

460
00:40:47,287 --> 00:40:51,258
>> of the resolution so moved. Second. >> motion made by councilman

461
00:40:51,258 --> 00:40:56,597
flores and by councilmember lee. Any other discussion and please by the council. Mayor

462
00:40:56,597 --> 00:41:01,235
pro tem montgomery. Yes. Council member lee. Yes. Council member flores. Yes.

463
00:41:01,235 --> 00:41:06,173
>> council member. Fleming. Yes .council member. Ortega. Yes. Council member. Stevens. Yes.

464
00:41:06,173 --> 00:41:11,145
mayor morgan. Yes g6. Consider a resolution approving the action of the round rock

465
00:41:11,145 --> 00:41:14,348
transportation economic. Development corporation and amending the transportation.

466
00:41:14,348 --> 00:41:21,870
capital improvement program. Earlier tonight the type b board approved this item. Uh,

467
00:41:21,870 --> 00:41:26,560
this is for additional right of way, uh, acquisition that we need for two projects. Uh,

468
00:41:26,560 --> 00:41:31,165
there's two projects that are part of our master plan. About every five years we update our

469
00:41:31,165 --> 00:41:36,436
transportation master plan that identifies which roadways we need to prepare for. Uh, it's

470
00:41:36,436 --> 00:41:40,240
based on where the growth is occurring in the city. It's based on land use assumptions

471
00:41:40,240 --> 00:41:44,111
and that's how we determine the size of the road. So here's a copy of our master plan uh,

472
00:41:44,111 --> 00:41:48,248
that we've done the two projects that we need additional right away for are

473
00:41:48,248 --> 00:41:53,988
shown right here uh kenny fort boulevard segment five and six and wyoming springs here's

474
00:41:53,988 --> 00:41:57,858
kenny fort boulevard five and six similar to the previous item I just talked about. Uh,

475
00:41:57,858 --> 00:42:02,596
segment five starts at on sellers boulevard, comes up here and stops at 112 kenny

476
00:42:02,596 --> 00:42:08,235
fort segment six will start at 112 and head through this field here and hit stop at

477
00:42:08,235 --> 00:42:13,340
university. There's a future segment seven of kenny fort that will be built with

478
00:42:13,340 --> 00:42:18,445
developments as you head north of university. The type b board previously approved $2 million

479
00:42:18,445 --> 00:42:24,618
for right of way for this project. We are asking for an additional 10 million uh to be

480
00:42:24,618 --> 00:42:29,990
allocated for future right away .uh, the cost had increased when we allocated the 2 million

481
00:42:29,990 --> 00:42:35,196
originally. Uh, we did not know how much right away we were going to need so we allocated

482
00:42:35,196 --> 00:42:39,433
to me and to get started with we've gone through the design. That's where we're at now. Uh

483
00:42:39,433 --> 00:42:45,272
we know our right away with it's about 120 to 150ft wide. Uh and now we've gone out to

484
00:42:45,272 --> 00:42:49,510
get appraisals and those cost are coming in so we need that additional money so we don't

485
00:42:49,510 --> 00:42:54,181
want to uh we want to make sure we put enough money in there but not too much. So that's why

486
00:42:54,181 --> 00:42:58,251
we come back to the type b board several times for design right of way and then

487
00:42:58,251 --> 00:43:01,222
construction. >> as. We move through the project. The second project

488
00:43:01,222 --> 00:43:08,620
wyoming springs extension we're on the west side of town. Uh this map is actually uh wyoming

489
00:43:08,620 --> 00:43:12,900
springs comes up here to sand base and then it already is built through baron's ranch

490
00:43:12,900 --> 00:43:17,809
right here. So the project stop starts at the north end of bands ranch and we'll head

491
00:43:17,809 --> 00:43:24,490
north through. Texas crest stolen property and stopped in town here at 1431. Uh, we

492
00:43:24,490 --> 00:43:29,153
already have 2 million allocated for right away. We're asking for 5.5 million more for

493
00:43:29,153 --> 00:43:33,391
7.5 total. There's just one property that we need to acquire right away here it's

494
00:43:33,391 --> 00:43:38,330
about 24 acres that we're going to need. Uh, we are currently in the appraisal phase of this

495
00:43:38,330 --> 00:43:45,270
before we start negotiations, the total for the uh type b amendment uh 56 is for 15.5

496
00:43:45,270 --> 00:43:50,307
million that you see there. Uh ,yesterday we looked at our capital program and there's a

497
00:43:50,307 --> 00:43:54,979
few projects that we were able to move out a little bit uh, another year so we we actually

498
00:43:54,979 --> 00:43:59,851
saved about 15 million for next year. So by allocating this we're really about the same

499
00:43:59,851 --> 00:44:05,923
amount of money being allocated to our type b road program for fy 27. So uh the type b board

500
00:44:05,923 --> 00:44:09,561
approve this item and I recommend approval as well. So any questions I'll be happy to

501
00:44:09,561 --> 00:44:15,561
answer. Any questions entertain motion up. >> the resolution. So moved.

502
00:44:16,267 --> 00:44:19,136
second. >> motion made by. Councilmember ortega. Same by

503
00:44:19,136 --> 00:44:23,208
councilmember fleming. Any other discussion. And please pull.

504
00:44:23,208 --> 00:44:27,178
>> the council. Council member lee. Yes. >> council member flores. Yes.

505
00:44:27,178 --> 00:44:32,820
>> council member fleming. Yes. Council member. Ortega. Yes. Council member stevens. Yes.

506
00:44:32,820 --> 00:44:39,882
mayor pro tem montgomery. Yes. Mayor. Morgan. Yes. >> uh, michael, let's skip down

507
00:44:39,991 --> 00:44:46,897
to age five. Where we get. Uh mr.. Down here and all of them that's what they're on here.

508
00:44:46,897 --> 00:44:53,371
right age. Five oh I'm sorry, I just. I thought I was you didn't come on down kevin. Just

509
00:44:53,371 --> 00:44:59,430
sit there for. >> just a quick second. To h5 h5. Consider approval the sixth

510
00:44:59,430 --> 00:45:03,981
the supplemental ordinance to the. Matter consider approval the sixth supplemental

511
00:45:03,981 --> 00:45:07,919
ordinance to the master ordinance establishing the city of round rock, texas

512
00:45:07,919 --> 00:45:13,580
utility system revenue financing program. First reading. Second reading.

513
00:45:13,580 --> 00:45:19,196
>> not required. Mayor and council. This ordinance is a um sixth or supplemental ordinance

514
00:45:19,196 --> 00:45:24,302
.the master ordinance establishing what you just read. This dates back to 2006.

515
00:45:24,302 --> 00:45:27,772
the city council adopted a master ordinance establishing the city round rock texas

516
00:45:27,772 --> 00:45:31,777
utility system revenue financing program in order for the city to provide for the

517
00:45:31,777 --> 00:45:37,682
financing of our utility system projects. Um, this is another debt instrument. The one we

518
00:45:37,682 --> 00:45:41,180
considered earlier this evening was for the best way to brush regional utility authority on

519
00:45:41,180 --> 00:45:48,726
the water side. This is for the bcr s the brushy creek regional wastewater system. Um this

520
00:45:48,726 --> 00:45:55,733
these bonds authorized um under this ordinance will be for $60 million for the purposes of our

521
00:45:55,733 --> 00:46:01,172
east wastewater treatment plant expansion project. This funding is also coming from the texas

522
00:46:01,172 --> 00:46:06,210
water development board um their clean water funding program. Um this debt issuance

523
00:46:06,210 --> 00:46:10,147
like the one considered earlier has been in our long range financial plans for a long time

524
00:46:10,147 --> 00:46:14,184
span identified in our long range debt plan. The expenses the capital expenses associated

525
00:46:14,184 --> 00:46:19,991
with are included in the proposed budget also on this evening's agenda um this these

526
00:46:19,991 --> 00:46:24,496
bonds are planned if approved to be a close in september funds coming in again to fund

527
00:46:24,496 --> 00:46:29,434
the city's um portion of the water treatment wastewater treatment plant expansion

528
00:46:29,434 --> 00:46:33,871
project. We have richard donahue, who serves as the city's bond counsel with mccall

529
00:46:33,871 --> 00:46:37,341
parker horton here in the audience should there be any questions for him? We also have

530
00:46:37,341 --> 00:46:42,279
cole gilmore here for specialized public finance. Um, also here if there's any

531
00:46:42,279 --> 00:46:45,416
questions I'm happy to answer any questions as well. All right.

532
00:46:45,416 --> 00:46:53,357
>> any questions. On this item ?all right I will. Entertain a motion to adopt ordinance.. So

533
00:46:53,357 --> 00:46:57,729
moved. Second. >> motion made by councilmember ortega second by councilmember

534
00:46:57,729 --> 00:47:04,350
lee. Any other. >> discussion and please by the council. Council member flores.

535
00:47:04,350 --> 00:47:07,338
yes. Council member. Fleming. Yes. >> council member. Ortega. Yes.

536
00:47:07,338 --> 00:47:12,276
council member stevens. Yes. Mayor pro tem montgomery. Yes. >> council member lee. Yes.

537
00:47:12,276 --> 00:47:18,276
mayor. Morgan. Yes. >> all right. >> michael, come on up. Each

538
00:47:18,983 --> 00:47:25,583
one. Consider an ordinance amending chapter 44 article six sections 40 4-1. 49 and. 44 151

539
00:47:26,757 --> 00:47:31,557
code of ordinances 2018. Additions regarding environmental service fees.

540
00:47:31,595 --> 00:47:36,701
first reading requires two readings. As you know, the city of round rock has its own

541
00:47:36,701 --> 00:47:41,672
environmental laboratory uh, for water and wastewater. We're one of very few cities in

542
00:47:41,672 --> 00:47:47,812
central texas that has a laboratory. Uh, city of austin has one lcra has one uh, button

543
00:47:47,812 --> 00:47:52,816
up here in williamson county. Uh, we have a lab and it's a very good lab that makes money

544
00:47:52,816 --> 00:47:57,221
for the city of round rock. Uh, a lot of the other cities around us and the utilities in

545
00:47:57,221 --> 00:48:02,590
the region, uh, bring their water and wastewater samples to our laboratory for analysis. It

546
00:48:02,590 --> 00:48:07,832
is a knee lac certified laboratory. Uh, so we're able to do that before you in the

547
00:48:07,832 --> 00:48:12,337
ordinance, we want to make some changes to our rate schedule. Uh, there's just a few changes.

548
00:48:12,337 --> 00:48:16,707
uh, one is when samples come into the laboratory in a bottle, you're supposed to have

549
00:48:16,707 --> 00:48:20,978
some airspace in there if there's not, uh, we have a chance to reject it, but that's

550
00:48:20,978 --> 00:48:24,916
not good customer service. So we want to be able to transfer that to another sample bottle.

551
00:48:24,916 --> 00:48:31,556
and so it's just adding $10 per sample for that fee. Uh, to do that that's one item there's

552
00:48:31,556 --> 00:48:37,940
once uh also constituent that we're not analyzing anymore we want to take that out of the

553
00:48:37,940 --> 00:48:42,466
ordinance. And then the third item is for our surcharge program we used to sample once

554
00:48:42,466 --> 00:48:48,640
every six months and then divide that cost over the next six months on the utility bill.

555
00:48:48,640 --> 00:48:53,110
uh we want to sample once a year now and divided over 12 months. So it's not a lot of

556
00:48:53,110 --> 00:48:57,748
money it's $100 for the entire year. So you divide that by 12 months. It's about $8.33 per

557
00:48:57,748 --> 00:49:04,354
month added to their their bill. That's for surcharges. That's for restaurants and

558
00:49:04,354 --> 00:49:10,662
folks around town that discharge higher uh body and total suspended solids into the

559
00:49:10,662 --> 00:49:14,966
wastewater system uh, because they're discharging higher concentrations into the

560
00:49:14,966 --> 00:49:19,770
wastewater system. Uh, we charge them that fee so that we have to treat the wastewater to

561
00:49:19,770 --> 00:49:23,507
that higher level. Uh, and we do that for restaurants different than the pretreatment

562
00:49:23,507 --> 00:49:27,578
program which is different constituents where we require industries to treat the

563
00:49:27,578 --> 00:49:31,849
wastewater on site before they discharged into the wastewater collection system. So that's

564
00:49:31,849 --> 00:49:36,988
the two different differentiates differentiations there. Uh, these items we'd

565
00:49:36,988 --> 00:49:41,500
like to amend the ordinance and I'll be happy to answer any questions that you have.

566
00:49:41,500 --> 00:49:50,342
questions on each. Questions on each one. Uh entertain a motion adopt the ordinance. So moved.

567
00:49:50,342 --> 00:49:53,811
>> second. >> motion made by councilmember flores. Second by councilman

568
00:49:53,811 --> 00:49:59,651
ortega. Any other discussion and please by the council. Council member fleming. Yes.

569
00:49:59,651 --> 00:50:04,989
council member. Ortega. Yes. Council member stevens. Yes. Mayor pro tem montgomery. Yes.

570
00:50:04,989 --> 00:50:09,194
council member. Lee. Yes. >> council member flores. Yes. Mayor morgan. Yes.

571
00:50:09,194 --> 00:50:15,194
>> to consider an. Ordinance amending chapter. 44 article two section sections 44, 32,

572
00:50:17,269 --> 00:50:22,973
4433 and 443 for code of ordinances. 2018 edition and growing water rates. Reuse

573
00:50:22,973 --> 00:50:28,747
water rates and sewer rates. First reading. Requires to. Mayor and council I have a

574
00:50:28,747 --> 00:50:34,285
presentation here on our utility rates every three years we update our rates based on

575
00:50:34,285 --> 00:50:39,991
our cost of service uh our utility as a cost of service utility. What that means is

576
00:50:39,991 --> 00:50:45,290
whatever it takes for us to run the water utility, the wastewater utility and the

577
00:50:45,290 --> 00:50:50,102
stormwater utility what all those expenses are we need to set our rates so that we

578
00:50:50,102 --> 00:50:55,206
recover the revenue to to run the utility. We're we're a nonprofit but we make money to

579
00:50:55,206 --> 00:51:00,144
run the operations and then pay for capital improvements. So uh we do that every three years

580
00:51:00,144 --> 00:51:06,350
and I want to give you the results of those uh those rates. Uh, we do not like one

581
00:51:06,350 --> 00:51:10,555
year rate shock. So that's why we do it. We do the model and it's based on the expenses that

582
00:51:10,555 --> 00:51:15,559
we're projecting over the next five and ten years. So we're building into it uh, and many

583
00:51:15,559 --> 00:51:19,930
times we've been doing in the past we bring to you a rate recommendation and it's for the

584
00:51:19,930 --> 00:51:24,435
next three years so that we're stepping in there and that's what we're recommending

585
00:51:24,435 --> 00:51:30,410
recommending tonight. Uh, there's different classes so there's retail versus wholesale

586
00:51:30,410 --> 00:51:34,979
retail or connections and businesses and the citizens that live in the city around

587
00:51:34,979 --> 00:51:41,118
rock wholesale is a lot of the municipal utility districts. We have 13 I'm sorry, 12 uh

588
00:51:41,118 --> 00:51:45,856
wholesale customers they have a different rate structure than the retail that's in the city.

589
00:51:45,856 --> 00:51:50,394
and I'll explain or go through some of those rates that we're recommending uh, residential

590
00:51:50,394 --> 00:51:55,900
versus commercial the way they uh, impact our water systems different uh, commercial is

591
00:51:55,900 --> 00:52:00,938
using it to run a business. A lot of times it's a uniform usage more so than a

592
00:52:00,938 --> 00:52:06,744
residential residential you'll see a peaking in that summer a lot of discretionary water, um,

593
00:52:06,744 --> 00:52:12,516
you know, outside watering irrigation uh, as well. So we look at all those things and

594
00:52:12,516 --> 00:52:17,354
our rate structure impervious cover versus uh pervious that's more of a stormwater item.

595
00:52:17,354 --> 00:52:22,793
we're not recommending any changes to our stormwater utility tonight. Uh, for water

596
00:52:22,793 --> 00:52:28,966
you're dealing with, uh, weather. It rains a lot or it's dry a lot. So we have to take

597
00:52:28,966 --> 00:52:34,639
averages over the last three years to get a feel for what the demand has been and then we

598
00:52:34,639 --> 00:52:38,610
project up from that. So we want to make sure we recover our cost and our base fee are

599
00:52:38,610 --> 00:52:44,115
the fixed fee and not the volumetric fee as much because if you have a very rainy year,

600
00:52:44,115 --> 00:52:48,510
uh, people are not going to be watering as much and that will affect the revenue that we need

601
00:52:48,510 --> 00:52:53,324
to to balance our budget. Uh, and then I mentioned every three years we look at that uh

602
00:52:53,324 --> 00:52:57,328
the background uh I mentioned ten years the background the last time we did our rates that

603
00:52:57,328 --> 00:53:02,660
it was in the spring of 2024 and you're going to say oh and I say every three years but

604
00:53:02,660 --> 00:53:06,804
that's only two years ago. And the reason I said that we were in the middle of a rate case

605
00:53:06,804 --> 00:53:11,808
the wholesale customers uh, were challenging our rates. So because we were in the middle

606
00:53:11,808 --> 00:53:18,116
of that process in the spring of 2024, we only made changes to the retail side at that

607
00:53:18,116 --> 00:53:23,454
time. That's when we adopted a fifth tier for our water rate structure. Uh and I'll show you

608
00:53:23,454 --> 00:53:30,161
how that's been impacting our ratepayers. And then also uh we had retail rate increases but

609
00:53:30,161 --> 00:53:36,233
we did not have any wholesale rate increases at that time in 2024 because of the rate case

610
00:53:36,233 --> 00:53:42,306
that we were in the middle of uh, that rate case has been uh resolved as stephanie had

611
00:53:42,306 --> 00:53:47,311
mentioned earlier, the case is over pvc said that our rates are just in reasonable we

612
00:53:47,311 --> 00:53:52,649
follow the state. Laws just like we're supposed to and we did that in the ruling came out

613
00:53:52,649 --> 00:53:58,388
in our favor because that happened in 2025. We wanted to come back in 2026 and update

614
00:53:58,388 --> 00:54:04,562
our model because for the last two years only retail had that increase. Our retail to some

615
00:54:04,562 --> 00:54:10,670
degree is subsidizing a portion of those wholesale customers because they still have that

616
00:54:10,670 --> 00:54:16,730
same rate they've had a few years ago. So this uh recommendations today even

617
00:54:16,730 --> 00:54:24,114
though y'all approved back then a 25 fy 25, fy 26 and fy 27 rate we're not going to

618
00:54:24,114 --> 00:54:28,285
implement the fy 27 rate y'all approved. We're going to reset them and I'm going to have

619
00:54:28,285 --> 00:54:36,850
tonight a recommendation for fy 2728 and 29. Are going forward. I mentioned there's difference

620
00:54:38,562 --> 00:54:43,401
between residential customers and commercial customers residential uh higher peaking

621
00:54:43,401 --> 00:54:48,105
factor in the summer. Why is that important to us? Uh that cost us capital projects that

622
00:54:48,105 --> 00:54:53,711
we have to build for that month of august when when that use is really high we have to build

623
00:54:53,711 --> 00:54:57,781
infrastructure to be able to meet that demand, uh, that we don't get to use very much of

624
00:54:57,781 --> 00:55:02,586
the year. So conservation programs and things like that if we can get people to shave

625
00:55:02,586 --> 00:55:08,125
off that peak those high demand days and weeks uh, that helps our entire capital program

626
00:55:08,125 --> 00:55:13,998
which at the end of the day helps our rates, uh, as you'll see here as we talk about uh,

627
00:55:13,998 --> 00:55:18,468
commercial side is more of a uniform. They're running a business and a lot of times

628
00:55:18,468 --> 00:55:22,740
their monthly water usage is very similar uh, because they're building a product or

629
00:55:22,740 --> 00:55:26,244
making something they're manufacturing and things like that. So we treat commercial

630
00:55:26,244 --> 00:55:32,650
and residential different when we talk about tiers and things like that. So we've completed

631
00:55:32,650 --> 00:55:37,355
our rate model here's here's the results as you'll see here at the beginning uh retail

632
00:55:37,355 --> 00:55:43,761
rates for the next three years we need to uh revenue increase of $4.6 million over the next

633
00:55:43,761 --> 00:55:47,531
three years. So we will walk into that over the next three years for the wastewater side

634
00:55:47,531 --> 00:55:52,769
we need another 2.3 million uh, in the three year window and you'll see the percent

635
00:55:52,769 --> 00:55:57,841
increases that I'll show you what are the cost drivers of this rate change? Uh,

636
00:55:57,841 --> 00:56:03,190
operations and maintenance. Right. Salary increases the raw water cost uh, has increased

637
00:56:03,190 --> 00:56:07,528
that we buy from brazos river authority and lower colorado river authority. They have

638
00:56:07,528 --> 00:56:13,600
rates that go up and we buy water from those entities by the acre feet. So every year we

639
00:56:13,600 --> 00:56:19,206
pay per acre feet to them for the water that we have under contract uh, chemical costs

640
00:56:19,206 --> 00:56:24,579
have increased our electrical contract uh, is expiring uh, we had a very good kilowatt per

641
00:56:24,579 --> 00:56:29,482
hour uh, rate and that contracts expiring and the electricity has gone up. So all

642
00:56:29,482 --> 00:56:35,523
that's plugged into the model, the next item aging system, our rehabilitation we spent a lot

643
00:56:35,523 --> 00:56:40,494
of money rehabbing so we probably about 5050 when you talk about new construction

644
00:56:40,494 --> 00:56:46,166
with new capacity versus maintaining and rehabbing our existing infrastructure, uh we

645
00:56:46,166 --> 00:56:51,237
feel very important about that. The city around rock is going to be here for many, many more

646
00:56:51,237 --> 00:56:55,508
years and we need to invest in our infrastructure so that we keep it good. We do that in

647
00:56:55,508 --> 00:57:01,214
transportation with our streets same concept make sure we take care of our assets uh for our

648
00:57:01,214 --> 00:57:07,870
citizens to enjoy large infrastructure. We've talked about these a lot. We have some

649
00:57:07,870 --> 00:57:11,250
regional projects that we are building into the future that's setting up round rock very well

650
00:57:11,250 --> 00:57:15,462
for our future. When you talk about economic development and being prepared for the growth

651
00:57:15,462 --> 00:57:21,267
of our city, having treatment plant capacity whether it's water or wastewater, having

652
00:57:21,267 --> 00:57:25,505
infrastructure in the ground ready for new developments to come puts round rock in a good

653
00:57:25,505 --> 00:57:29,844
light when they come to town. Uh that's what we're doing here. We're spending money and

654
00:57:29,844 --> 00:57:34,414
investing in our future with these big regional projects. But that comes with a cost,

655
00:57:34,414 --> 00:57:38,819
right? We're having the issue that we had two items before me tonight that were issuing debt

656
00:57:38,819 --> 00:57:44,157
for these projects. That's all rolled into our rate model that we recovers through our rates.

657
00:57:44,157 --> 00:57:52,980
or through impact fees that the new developments pay. Uh let's see wholesale rate increases to

658
00:57:52,980 --> 00:57:58,505
also recover cost of service and I've already mentioned that. Okay recommendations

659
00:57:58,505 --> 00:58:03,576
here's our annual increases I'm going to skip this because I'm going to go. So let me talk

660
00:58:03,576 --> 00:58:08,949
about this one a little bit in this in this proposal uh we are making no changes to the tiers

661
00:58:08,949 --> 00:58:13,253
.uh that's going to stay the same. But one thing we're not going to adjust is that first

662
00:58:13,253 --> 00:58:17,892
tier on the residential side that volumetric charge is going to stay the same. Those folks

663
00:58:17,892 --> 00:58:23,263
are already conserving. They're doing a great job. So really the increases are more in that

664
00:58:23,263 --> 00:58:27,834
second, third, fourth and fifth tier and I'll show you how that's going to be. We're going

665
00:58:27,834 --> 00:58:32,706
to lake stay with the one rate for commercial it's a uniform rate for all the water they use

666
00:58:32,706 --> 00:58:37,277
at a commercial property because we don't want to impact their businesses because that's

667
00:58:37,277 --> 00:58:42,150
just part of. Running their business. And then we'll have wholesale rate increases over

668
00:58:42,150 --> 00:58:48,154
the next three years as well. And those rates will range on the water side from 9.3 to

669
00:58:48,154 --> 00:58:53,994
15.1% per year, uh, for those wholesale customers and then wastewater is about 4.8% per

670
00:58:53,994 --> 00:58:59,967
year for all the wholesale customers. This chart. >> right here I wanted to show

671
00:58:59,967 --> 00:59:08,141
you uh because in so you got. Summer 2023 it's basically august of 2023. If we had a

672
00:59:08,141 --> 00:59:12,880
fifth tier in august of 2023, here's how the customer number of customers would have used

673
00:59:12,880 --> 00:59:17,451
water. We didn't have that fifth tier there. But I want to show you because in summer of

674
00:59:17,451 --> 00:59:22,823
24 is when we adopted that fifth tier. But let's just assume in 23 we had that one.

675
00:59:22,823 --> 00:59:30,530
so 8% of our customers use 27% of our residential water. In august of 2023 we implemented

676
00:59:30,530 --> 00:59:37,738
the fifth tier and in summer 25 only uh 4% went into that fifth tier and they used 17% of the

677
00:59:37,738 --> 00:59:43,676
water. So we're shaving off that high usage is what's this whole plan is to be it's a

678
00:59:43,676 --> 00:59:48,849
conservation tool. Mayor, you've mentioned our peak days in the summer versus 2011 to

679
00:59:48,849 --> 00:59:53,887
now. Uh I looked at it this morning we use 32 million gallons yesterday in the city.

680
00:59:53,887 --> 01:00:00,827
that is a low number for august 25th or whatever we're at. Uh, that's a low number. Uh, last

681
01:00:00,827 --> 01:00:07,501
summer we peaked at around 36 million on our highest day. Uh, we had 43,000,000 in 2011. So

682
01:00:07,501 --> 01:00:12,139
our citizens are conserving they're being smart with their water. Uh, the landscape

683
01:00:12,139 --> 01:00:18,178
ordinance you guys passed all that plays into it. Our reuse program is playing into it and

684
01:00:18,178 --> 01:00:22,316
it's really setting us up really well for our future because we've reserved water

685
01:00:22,316 --> 01:00:26,786
for the future and that water is going to be there and it's going to last. Longer forest.

686
01:00:26,786 --> 01:00:30,691
as we conserve and be smart with our water supply and our citizens should get a lot of

687
01:00:30,691 --> 01:00:35,262
credit for being conscientious and conserving water in our community. But I wanted to show

688
01:00:35,262 --> 01:00:42,469
you that this rate structure is working. Uh, as far as how much total water we use in our city.

689
01:00:42,469 --> 01:00:46,607
okay, here's our recommendations. Uh, mentioned some of the percentages, but

690
01:00:46,607 --> 01:00:50,644
let me just show you some of the numbers for a residential house this is a five inch

691
01:00:50,644 --> 01:00:55,916
meter. Almost every house in the city has a five eighth inch meter right here. Currently you

692
01:00:55,916 --> 01:01:03,230
pay $18.21 a month. So if you use zero water for that month and say you're out of town for

693
01:01:03,230 --> 01:01:08,896
the whole month, your bill will be $18.21 for that month. I mentioned this column here

694
01:01:08,896 --> 01:01:12,633
because y'all have previously adopted these but we're not going to we're going to avoid

695
01:01:12,633 --> 01:01:19,390
those now and here's our three year recommendation. So 1821 is going to go up to 19.60 in the

696
01:01:19,390 --> 01:01:26,239
first year 20.58 21.61 that's your base charge that's on every bill. The volumetric

697
01:01:26,347 --> 01:01:32,180
tiers are right here. So the first tier is 0 to 10,000 gallons. Uh most folks stay

698
01:01:32,180 --> 01:01:38,792
within that 10,000 gallons on a given month $2.57 per thousand gallons. We're going to keep it

699
01:01:38,792 --> 01:01:45,699
there in 2027. Then we'll go to 5% at 5% for this next two years. But this first year

700
01:01:45,699 --> 01:01:48,669
you'll see some of the percentages are going to be more significant this first

701
01:01:48,669 --> 01:01:55,876
year as you get into the higher tiers and then the second and third year will be 5% at 5%.

702
01:01:55,876 --> 01:01:59,779
what does that do to your bill? So today let's just say at. >> your. House you use 10,000

703
01:01:59,779 --> 01:02:07,870
gallons for a given month. Your bill today is $43.91 for that month's water. With these

704
01:02:07,870 --> 01:02:15,229
changes here's your new numbers 45, 30, 47 and 49 for the next three years. How does that

705
01:02:15,229 --> 01:02:20,967
compare to other cities in the state and around our region? Uh currently for 10,000 gallons at

706
01:02:20,967 --> 01:02:26,506
your house, here's round rock right here at 43.91. If council approves these, uh. Proposal

707
01:02:26,506 --> 01:02:33,359
for next year, we would go to 45.30 uh, with this increase. I do know several of these cities

708
01:02:33,359 --> 01:02:38,464
are currently looking at their rates as well. So if you see us at the bottom end here today

709
01:02:38,464 --> 01:02:45,700
could get even more pronounced if these other cities approve uh increases when you look at

710
01:02:45,700 --> 01:02:49,474
these charts is a reflection of how we run our utility. We plan for the future. We make new

711
01:02:49,474 --> 01:02:54,180
growth, pay for itself. Uh, we try to be as efficient as we can. We keep our assets

712
01:02:54,180 --> 01:02:58,416
maintained. All that reflects in rates that are really attractive for our community.

713
01:02:58,416 --> 01:03:05,324
uh, and we're really proud of that. That means we're we're delivering good, good service.

714
01:03:05,324 --> 01:03:10,329
another example say you're a these are 45,000 gallons a month. Uh what would it look

715
01:03:10,329 --> 01:03:17,102
like? So your bill today is $254. Then it would go up to these three numbers because of

716
01:03:17,102 --> 01:03:21,407
those tiers right. You're using a lot of water. How do you stack up to our neighboring

717
01:03:21,407 --> 01:03:28,781
cities for this amount? Uh right here round rocks right here 254 we go to 285 next year

718
01:03:28,781 --> 01:03:32,351
sugarland I didn't check but I think they don't have as many significant tiers because they

719
01:03:32,351 --> 01:03:36,540
weren't on the bottom in on 10,000 but they're down there with us on the 45,000. So

720
01:03:36,540 --> 01:03:40,493
they're probably more of a probably more of a uniform rate instead of a tiered structure.

721
01:03:40,493 --> 01:03:45,864
but still we have very competitive rates there. So commercial that was

722
01:03:45,864 --> 01:03:51,360
residential. This is commercial. We do not have tiers. We have a single uniform

723
01:03:51,360 --> 01:03:56,208
rate that I mentioned uh most commercial consumption is non-discretionary. It's used

724
01:03:56,208 --> 01:04:01,180
for their operations of their business. We do encourage commercial properties to have a

725
01:04:01,180 --> 01:04:05,918
second meter for irrigation. Only because. >> we do winter water.

726
01:04:05,918 --> 01:04:10,923
averaging to determine your wastewater bill. So if. They use just one.

727
01:04:10,923 --> 01:04:15,600
>> meter then that's going to affect their water wastewater bill uh going forward to the

728
01:04:15,600 --> 01:04:18,363
next year. So if they have a separate irrigation meter it takes that water off that that

729
01:04:18,363 --> 01:04:23,969
main meter where we calculate the wastewater most commercial properties that are larger have

730
01:04:23,969 --> 01:04:27,906
a second irrigation meter. >> the smaller. Ones don't necessarily have it because

731
01:04:27,906 --> 01:04:34,147
they don't have a lot of irrigation. I think I just said everything that was on that

732
01:04:34,147 --> 01:04:40,619
slide before I even got to it. We'll skip it. Uh commercial rates. So here we go. It's a

733
01:04:40,619 --> 01:04:48,861
uniform uh, rate. Uh so right now it's $3.02 is our current rate. That's your volumetric

734
01:04:48,861 --> 01:04:53,532
rate. And then here's the base charges. It's based on the size of the meter you have. It's

735
01:04:53,532 --> 01:04:58,270
your commercial property as well uh and then we'll have some slight increase going

736
01:04:58,270 --> 01:05:03,943
forward uh, in the ten to the future. This was the adopt this is the one that was previously

737
01:05:03,943 --> 01:05:08,447
adopted that we're not going to adopt. So next year will be $3.21 per thousand gallons then

738
01:05:08,447 --> 01:05:15,154
337 354. For commercial. Give you an example of a commercial property in round rock if

739
01:05:15,154 --> 01:05:18,624
you're using 40,000 gallons what does that look like if you live in another city? Here's

740
01:05:18,624 --> 01:05:22,228
your difference in your water usage in round rock versus surrounding cities for

741
01:05:22,228 --> 01:05:31,503
commercial businesses. Just to give you an idea all right that was the water talk. Let's talk

742
01:05:31,503 --> 01:05:36,842
about wastewater now uh wastewater is a little bit different. So the base charge

743
01:05:36,842 --> 01:05:44,182
today is 1491 for a house with a58 inch water meter. We're proposing to go up 8.7% here to

744
01:05:44,182 --> 01:05:50,656
1612 and then another 5% at 5% for your base charge and then your volumetric charge today

745
01:05:50,656 --> 01:05:56,995
you pay $3.21. It's what it's wastewater winter averaging. So we take december january

746
01:05:56,995 --> 01:06:03,100
february those three months your water usage we take the average. Per month. And that's

747
01:06:03,100 --> 01:06:08,774
what we assume you're going to use wastewater for the next year round. So we just set that

748
01:06:08,774 --> 01:06:15,715
once a year every year. And then there's your increases on the wastewater side. I show.

749
01:06:15,715 --> 01:06:22,154
>> you my next. Chart here's wastewater. How does round rock stack up with wastewater? 6000

750
01:06:22,154 --> 01:06:29,628
gallons is a pretty typical average house. Uh bill. Uh is about 6000 gallons a month.

751
01:06:29,628 --> 01:06:37,428
here's round rock's current 3417 proposal for next year will go to 3588. Yeah, those.

752
01:06:37,669 --> 01:06:41,507
>> two together you had the water 10,000 gallons and the wastewater 6000 gallons. That's

753
01:06:41,507 --> 01:06:49,907
the combined for round rock versus surrounding cities. This slide here shows the entire

754
01:06:50,515 --> 01:06:55,530
utility bill. So if you're a citizen today you get a utility bill from the city of round

755
01:06:55,530 --> 01:07:00,726
rock. It's going to have water wastewater stormwater garbage and recycling. Sales tax is

756
01:07:00,726 --> 01:07:04,796
only on the garbage and recycling piece and then your total monthly bill. So let's

757
01:07:04,796 --> 01:07:09,268
just go back to that average of 10,000 gallons of water 6000 gallons of wastewater, your

758
01:07:09,268 --> 01:07:16,342
total bills $109.55 today with these proposed changes these are the next three years if all

759
01:07:16,342 --> 01:07:21,647
things are equal, this is the total change in your monthly bill for a normal or just a

760
01:07:21,647 --> 01:07:28,588
residential house. The garbage recycling we were estimating here because that's based on

761
01:07:28,588 --> 01:07:35,294
cpi so we kind of estimated uh right now it's about a 3.8 uh percent cpi that we're looking

762
01:07:35,294 --> 01:07:42,735
at for next year for our garbage and recycling rates. Okay that was all the retail.

763
01:07:42,735 --> 01:07:47,873
so now we're going to have a slide or two here just about the wholesale we have 12

764
01:07:47,873 --> 01:07:53,579
wholesale customers uh because they're not all water wastewater we have ten on the

765
01:07:53,579 --> 01:07:57,248
water side and ten on the wastewater side for example. See the mud is just a

766
01:07:57,248 --> 01:08:00,852
wastewater wholesale customer. They're not a water customer because they get water from

767
01:08:00,852 --> 01:08:07,726
jonah on the on the other side of that we have uh farm bill off and aqua texas these top

768
01:08:07,726 --> 01:08:11,596
two they're just water wholesale customers. They're not wastewater wholesale

769
01:08:11,596 --> 01:08:15,867
customers. Foreign bluff has an owner in the regional wastewater system aqua texas.

770
01:08:15,867 --> 01:08:22,274
there's toccoa springs over here. They have septic systems just this look at the last two

771
01:08:22,274 --> 01:08:27,446
lines here. So over the next three year period uh here's the increases we are expecting for

772
01:08:27,446 --> 01:08:32,350
the wholesale customers on the water side. Split that out of our three year period and

773
01:08:32,350 --> 01:08:38,423
you're looking at that around a 10% increase on water. Uh for those wholesale customers. This

774
01:08:38,423 --> 01:08:42,661
looks higher. But you remember they did not have an increase those last two years. It's all

775
01:08:42,661 --> 01:08:47,733
about cost of service and we want to make sure all of our customers are paying the cost

776
01:08:47,733 --> 01:08:54,187
that it to us that it is to deliver the service. Wholesale water is different because we

777
01:08:54,187 --> 01:08:59,659
basically deliver water to a meter. Let's just say it's a municipal utility district..

778
01:08:59,659 --> 01:09:03,129
>> we give. >> them. At the. >> meter, then the piping and

779
01:09:03,129 --> 01:09:08,601
the billing and the meters within the mud are a separate asset that they have to take

780
01:09:08,601 --> 01:09:12,972
care of. So they take that and they add that to their bill. So that's why it's not apples to

781
01:09:12,972 --> 01:09:17,743
apples when you're talking wholesale versus retail. But I will assure you if our rates

782
01:09:17,743 --> 01:09:22,281
are as low as they're showing here wholesale customers are getting a good price for the

783
01:09:22,281 --> 01:09:28,354
quality what we're giving them. Absolutely wastewater same concept here I mentioned

784
01:09:28,354 --> 01:09:34,126
earlier 4.8% increase per year and here's the wholesale rate. All wholesale customers will

785
01:09:34,126 --> 01:09:40,200
have the same rate for their wastewater $3.56 a thousand and then it'll trend up just like

786
01:09:40,200 --> 01:09:47,400
that on the horizon. Uh, stephanie already mentioned that the wholesale customers

787
01:09:47,907 --> 01:09:53,613
filed an appeal with the public utility commission that's going on. Uh, debt payments will be,

788
01:09:53,613 --> 01:09:57,951
uh, increasing due to the expansions we've been talking about that so that debt payment

789
01:09:57,951 --> 01:10:02,789
that will be making is all rolled into the rates that I just showed you guys, uh, going

790
01:10:02,789 --> 01:10:07,126
forward, city of georgetown's wholesale water contract it was a ten year contract. It is set

791
01:10:07,126 --> 01:10:13,866
to expire in fy 31. Uh, we bring in about $3 million a year. If we do not renew that,

792
01:10:13,866 --> 01:10:18,337
that could be a revenue hit to us. Uh, but we'll see. You know, georgetown may want to do

793
01:10:18,337 --> 01:10:22,208
it. Uh, but round rock will make that determination and we want to make sure we always

794
01:10:22,208 --> 01:10:27,480
protect our system and be able to meet our needs. Uh, but if we can help our surrounding

795
01:10:27,480 --> 01:10:31,951
cities, we always look at that as well. We believe that if we help cities around us and they

796
01:10:31,951 --> 01:10:37,757
do well, it helps around us to do well as as well. And then I mentioned the chemical I mean

797
01:10:37,757 --> 01:10:43,529
the uh electrical contract we had a 3.8 cents per kilowatt hour contract. It's expiring uh

798
01:10:43,529 --> 01:10:48,901
next year and we're looking at about a 6.3 cents per kilowatt hour. I point that out because

799
01:10:48,901 --> 01:10:54,106
one of our biggest users in our cost is electrical power. We're pumping water several times to

800
01:10:54,106 --> 01:10:59,946
move it around the system. So electricity plays a big part uh, in our rates. Here's our

801
01:10:59,946 --> 01:11:06,118
schedule. Uh, we did meet with the individually on july 21st and 22 with all those wholesale

802
01:11:06,118 --> 01:11:10,957
customers. Uh, just go back all the way to january. We had a kickoff meeting with all those

803
01:11:10,957 --> 01:11:15,261
wholesale customers saying we're going to be looking at rates and then we brought them

804
01:11:15,261 --> 01:11:21,000
in individually on these in july to show them their rates and uh, very good meeting. They

805
01:11:21,000 --> 01:11:26,805
were positive uh they they've seen the rates and we didn't have really much pushback. I

806
01:11:26,805 --> 01:11:30,343
mean it was it was a good story to tell and they understand that there's going to be

807
01:11:30,343 --> 01:11:35,548
increases at the budget retreat we talked briefly about the rates and then tonight we're

808
01:11:35,548 --> 01:11:39,385
august 27th we had our first reading for the rate ordinance. We'll come back september 10th

809
01:11:39,385 --> 01:11:44,624
with our second reading and if approved by council these new rates will be effective

810
01:11:44,624 --> 01:11:49,862
starting november 1st and they'll be november 1st each year for the next three years

811
01:11:49,862 --> 01:11:54,667
for the rates that I just proposed. So uh that's my presentation. That's our rates.

812
01:11:54,667 --> 01:11:58,838
uh, we're really proud of our utility. We feel really good about our rates and uh, we're

813
01:11:58,838 --> 01:12:03,876
going to continue to try to have the best rates in central. Texas and be that be the most

814
01:12:03,876 --> 01:12:10,149
efficient utility. So, uh, be happy to answer any questions that you have. Questions mayor

815
01:12:10,149 --> 01:12:19,492
brought to uh. Michael on. The utility. On the power the. Rate for the. Power utility. You

816
01:12:19,492 --> 01:12:27,666
have an. Estimated increase of six. Plus percent. Is that. Negotiable or is that a. Fixed

817
01:12:27,666 --> 01:12:33,720
increase or. Could it be more. Could it be less? Well we signed a we just recently

818
01:12:33,720 --> 01:12:38,778
signed the 6.3 and brooks may want to add on 6.3 and that covers a lot of the city. Uh we

819
01:12:38,778 --> 01:12:43,516
did have a separate contract just for the water plant that we were able to sign a five

820
01:12:43,516 --> 01:12:49,388
point uh, a cheaper percentage. So uh, all the rates in the utility industry are going up.

821
01:12:49,388 --> 01:12:56,796
uh, we just happened to sign that contract back earlier at that 3.6%. So uh, we we do look

822
01:12:56,796 --> 01:13:02,702
at rates and we try to find the best rate possible and that 6.3 still still a pretty good rate

823
01:13:02,702 --> 01:13:10,910
overall okay. Council member de. In reference to georgetown the contract if that doesn't

824
01:13:10,910 --> 01:13:17,917
come through we do have. >> a backup to take care of that. Or well when we sign that

825
01:13:17,917 --> 01:13:23,623
contract in 2021 with georgetown for ten years it was not part of our plan okay

826
01:13:23,623 --> 01:13:28,194
right. We we had this going on. We have our our plan how we're going to build infrastructure

827
01:13:28,194 --> 01:13:33,732
to meet our demands. Georgetown approached us uh, in a lot of times with our infrastructure

828
01:13:33,732 --> 01:13:37,370
and our water we're always ahead of the game right? We're expanding treatment plant

829
01:13:37,370 --> 01:13:41,941
capacity well in advance or when we need it. So it was a time where we have extra

830
01:13:41,941 --> 01:13:46,713
capacity. So when georgetown approached us we looked at that and the first thing we look at

831
01:13:46,713 --> 01:13:51,951
it is to make sure round rock's covered on the worst day of the year. Uh, we looked at the

832
01:13:51,951 --> 01:13:58,230
extra capacity we had. We were able to look ahead and forecast and we agreed to do that for

833
01:13:58,230 --> 01:14:03,797
them. Uh, the benefit to us which it was not in our rate model the benefit was if we're

834
01:14:03,797 --> 01:14:10,350
paying for water in lake travis already. Uh, so signing this deal there covering that cost

835
01:14:10,350 --> 01:14:15,441
for us, uh, we have debt on bcr way bringing that water to georgetown. That's a debt

836
01:14:15,441 --> 01:14:22,248
payment we have to pay, uh, their rates. That's all in that rate. So by us signing that it

837
01:14:22,248 --> 01:14:27,219
helped our whole rate model with this $3 million in revenue I'm talking about but we didn't

838
01:14:27,219 --> 01:14:31,991
plan on that. That's just kind of extra money that kind of we're able to to to receive

839
01:14:31,991 --> 01:14:37,964
revenue for. So if it goes away in 2031 it's not the end of the world uh because it's not a

840
01:14:37,964 --> 01:14:43,964
guarantee. All right. Thank you. You know, councilmember fleming. Um.

841
01:14:44,704 --> 01:14:47,774
>> if you if. You will just help me with the logic. So when.

842
01:14:47,774 --> 01:14:52,545
>> I was looking at the residential water 45,000 gallons that would be really

843
01:14:52,545 --> 01:14:55,814
high end because I think you were saying like the average is 10,000, that's what you were

844
01:14:55,814 --> 01:15:01,487
showing. But when you showed the. 45,000 it was like $254. If I'm remembering I was

845
01:15:01,487 --> 01:15:11,163
looking at that correctly and I think is before that um there you go. So 285 sorry. Okay so

846
01:15:11,163 --> 01:15:15,501
then but if I look at commercial and they're doing 40,000 gallons then it's more

847
01:15:15,501 --> 01:15:20,722
like $145 if I was looking at that. So I was wondering why residential would be paying

848
01:15:20,722 --> 01:15:25,694
more for their water bill. I think if you go forward to commercial it'll show 40,000.

849
01:15:25,694 --> 01:15:28,630
yes. >> let me show you something. So I was just trying to

850
01:15:28,630 --> 01:15:32,334
understand the logic to why I guess in essence I mean if the average person is 10,000 I

851
01:15:32,334 --> 01:15:35,804
understand but it seems like commercial get a little bit more leniency. So I was

852
01:15:35,804 --> 01:15:40,800
wondering that like so. So 45,000 gallons for residential home right. You're going to

853
01:15:40,800 --> 01:15:46,948
fall into these tiers. Okay so your your first two years $2.57 you're going to get all the way

854
01:15:46,948 --> 01:15:52,687
into that fifth tier because the fifth tier starts at 34,000 gallons you're paying today

855
01:15:52,687 --> 01:15:57,526
$7.96 per thousand gallons for that water. Right on the commercial it's different. It's

856
01:15:57,526 --> 01:16:06,526
not a tiered structure. It's a it's a one rate okay. Right here $3.02 for all 40,000

857
01:16:07,436 --> 01:16:12,574
gallons. So residential you go into that fifth tier in the per thousand gallon and rate goes

858
01:16:12,574 --> 01:16:17,479
up. That's why the residential bill is higher than the commercial bill for similar

859
01:16:17,479 --> 01:16:23,384
water usage because you're paying on commercial business $3.02 for that 40,000 gallon

860
01:16:23,384 --> 01:16:28,323
you're still paying $3.02 per thousand. That makes sense. It makes sense. I was just

861
01:16:28,323 --> 01:16:32,727
wondering why they would get a lower rate. Like what's the logic behind having a lower

862
01:16:32,727 --> 01:16:36,932
rate for the commercial versus residential? I think the logic we're a pro business community,

863
01:16:36,932 --> 01:16:41,870
right? We want to be we want to make sure we recover our calls fairly, but we also want to

864
01:16:41,870 --> 01:16:48,511
know how many businesses use that to run their business. We don't want to be uh on the

865
01:16:48,511 --> 01:16:52,681
residential side that is throughout water in their yard. You don't have to water that

866
01:16:52,681 --> 01:16:57,853
you choose to do it business. We want to make sure we don't overcharge them and that's why

867
01:16:57,853 --> 01:17:03,792
there's $3.02 right here is is between the first and second tier rate of residential. Okay

868
01:17:03,792 --> 01:17:08,264
no I understand thank you. When I think some of that to councilmember foreman's point

869
01:17:08,264 --> 01:17:13,735
is is why I mean just go back to 2011 what. >> you were talking. About

870
01:17:13,735 --> 01:17:21,477
there was 44 million gallons of water use that. Day and the next you know, the next day

871
01:17:21,477 --> 01:17:25,881
when. >> all the restrictions. Went in it. Dropped to. 11 or 12

872
01:17:25,881 --> 01:17:30,251
million. >> and what that told us is that you're. The higher.

873
01:17:30,251 --> 01:17:35,224
heavier users on. >> the system. Our residential properties. Um I mean

874
01:17:35,224 --> 01:17:40,562
unfortunate I mean that's that's the reality. Of it. >> and um. I think that's

875
01:17:40,562 --> 01:17:44,100
where. Some of that. >> comes is. That it? You know, there's.

876
01:17:44,100 --> 01:17:51,600
>> a. Much more non-discretionary use. Versus you know what. We uh. We have

877
01:17:51,600 --> 01:18:00,606
in. You know, the thing is is. That we've grown by 30,000. People since 2011. Um, and uh.

878
01:18:01,283 --> 01:18:08,457
businesses that have come. And uh, they um and we haven't. >> hit. That 44 million gallons

879
01:18:08,457 --> 01:18:17,866
since. So if we were if there were just crazy water. Use by everybody. Then you know, we

880
01:18:17,866 --> 01:18:22,704
would have burst through that. 44 million gallons. But we haven't done it since 2011. I

881
01:18:22,704 --> 01:18:27,142
mean so that's you know, that says a lot and a. >> lot of that. Changes the.

882
01:18:27,142 --> 01:18:32,114
>> the tier rates because. >> we were you know as he showed the 23 health uh the

883
01:18:32,114 --> 01:18:38,654
bigger. Users were. You know. >> a small percentage but it. Was impact in. A lot. Greater

884
01:18:38,654 --> 01:18:46,361
deal. And so. I think. >> that some some. Of it um. On that do you. Do you.

885
01:18:46,361 --> 01:18:51,660
>> have a. >> breakdown of like when you know a. Daily use what

886
01:18:51,660 --> 01:18:58,374
percentage is that commercial versus what percentage is residential? I can get that I

887
01:18:58,374 --> 01:19:02,911
don't have it at my fingertips. We I mean do you just. Have a. >> rough idea. What it usually

888
01:19:02,911 --> 01:19:08,616
is? Um. >> I'd have to calculate in my head a little bit because I

889
01:19:08,616 --> 01:19:11,220
know how many houses and I know about the average house. That's right.

890
01:19:11,220 --> 01:19:14,289
>> I just. >> I was just. Curious I can I can get that real easy. I just

891
01:19:14,289 --> 01:19:19,940
don't know off the top of my head. Yeah. >> and then yeah. I think the

892
01:19:19,940 --> 01:19:25,200
other thing is is can you explain when you say. You know we're. We're we're um

893
01:19:25,200 --> 01:19:32,941
increasing the rate but we're having new growth. Helps pay for itself. Uh, where does that

894
01:19:32,941 --> 01:19:37,979
come from and where does. >> it go toward. When you say, you know, a business comes in

895
01:19:37,979 --> 01:19:43,652
and what happens? So we run the utility. There's two ways money comes into the utility to to

896
01:19:43,652 --> 01:19:50,859
run the utility through the rates and through capital recovery fees impact fees uh

897
01:19:50,859 --> 01:19:57,865
what that is so businesses come to town, residential homes come to town, uh, we charge them a

898
01:19:57,865 --> 01:20:04,106
connection feed into our system .uh, and that fee is based on new capital.

899
01:20:04,106 --> 01:20:08,142
>> that we have. >> to spend to be able to meet the demands of the new growth

900
01:20:08,142 --> 01:20:13,314
and that's figured into that impact fee that people pay. So when businesses come, uh, they

901
01:20:13,314 --> 01:20:18,530
pay their share when they come to town to help us so that we can have a water plant

902
01:20:18,530 --> 01:20:22,624
expansion when you water plant expansion the person living here for 50 years is not having

903
01:20:22,624 --> 01:20:27,280
it should not have to pay for having a water plant expansion right? The business coming here

904
01:20:27,280 --> 01:20:30,650
should help pay for that because they're the reason that we have to expand the. Plant

905
01:20:30,650 --> 01:20:34,502
and so our impact fees in the year 2000 we had about the highest impact fees in the

906
01:20:34,502 --> 01:20:39,307
state of texas in round rock, texas. And they said your fees are. So high. Growth is going

907
01:20:39,307 --> 01:20:46,114
to stop. Ground rock has grown consistently. So uh and other utilities and cities have

908
01:20:46,114 --> 01:20:51,553
caught on to that now their impact fees have gone up really high. So uh we want to make

909
01:20:51,553 --> 01:20:56,124
sure our rates are set for the service and then we make sure capital recovery fees are set

910
01:20:56,124 --> 01:21:01,329
right so that that new growth coming in pays for their portion to run our utility. Uh.

911
01:21:01,329 --> 01:21:06,101
>> so michael, you talked. About commercial. Having a separate irrigation meter. Can

912
01:21:06,101 --> 01:21:11,840
you talk about how that's billed? Yes. >> so on a commercial property

913
01:21:11,840 --> 01:21:16,411
let's just say you have a commercial property and you have your first meter that's

914
01:21:16,411 --> 01:21:22,170
using running into your business for just your normal domestic water use uh to run

915
01:21:22,170 --> 01:21:27,889
your business you have a second meter for irrigation, uh, for that commercial business and

916
01:21:27,889 --> 01:21:33,228
that's based on tiers just like a residential house. So your irrigating your yard is going

917
01:21:33,228 --> 01:21:37,766
through that irrigation meter you will pay tiers uh and that you'll pay that separately so

918
01:21:37,766 --> 01:21:43,688
that water separated from the meter that sends water into the business to run the business.

919
01:21:43,688 --> 01:21:50,962
so there are two separate deals uh and then the wastewater fee is connected off of that. Okay.

920
01:21:50,962 --> 01:21:58,162
>> any other questions? Okay. Entertain motion up the. Ordinance some. Second motion

921
01:22:01,373 --> 01:22:06,210
made by. Councilman flores everybody. Council member. >> stevens any other questions

922
01:22:06,210 --> 01:22:13,170
discussion and please public council. Council member ortega yes. Council member stevens

923
01:22:13,170 --> 01:22:18,890
yes. Mayor pro tem montgomery. Yes. Council member. Lee. Council member flores. Yes.

924
01:22:18,890 --> 01:22:22,894
council member fleming. Yes. Mayor morgan. Yes. >> I think. We're going to.

925
01:22:22,894 --> 01:22:31,294
>> take a quick five. Just for the next two. Items all right. We'll reconvene.

926
01:22:32,404 --> 01:22:39,604
>> at 730. I'll read the next. Item. H3 considered public testimony regarding it

927
01:22:40,111 --> 01:22:44,449
regarding an an ordinance adopting the fiscal. Year 2027. Annual budget for the

928
01:22:44,449 --> 01:22:49,120
city of round rock. First reading requires two readings. Mayor and council that time of

929
01:22:49,120 --> 01:22:53,391
the year we have the public hearing for the proposed budget and the proposed property tax

930
01:22:53,391 --> 01:23:01,791
rate. The total budget is $684.1 million. This is made up of $189.4 million for the

931
01:23:03,100 --> 01:23:06,337
general fund, which funds most of the city's main operating functions includes public

932
01:23:06,337 --> 01:23:13,210
safety, parks and recreation, transportation, round rock public library, etc. New staff

933
01:23:13,210 --> 01:23:20,185
proposed for upcoming fiscal year 52.5 um fte or full time equivalents that's 48 positions

934
01:23:20,185 --> 01:23:26,570
in the general fund mostly public safety maintenance and operations of bond project bond

935
01:23:26,570 --> 01:23:31,929
funded. Facilities scheduled. >> to open in fiscal year 2027 and a few positions for

936
01:23:31,929 --> 01:23:37,168
transportation a four and a half years and some other major operating funds including the

937
01:23:37,168 --> 01:23:42,573
hotel occupancy tax fund multi-purpose complex and our utility fund. The proposed tax

938
01:23:42,573 --> 01:23:47,911
rate which will have more information on forthcoming 22.3 cents and the proposed budget

939
01:23:47,911 --> 01:23:53,617
includes $141.8 million for the utility fund, which accounts for the water and wastewater

940
01:23:53,617 --> 01:24:00,791
service provided to our customers. Um one of the add this slide in for tonight's

941
01:24:00,791 --> 01:24:05,929
presentation. Ah again you see the total $189.4 million is a proposed budget for the general

942
01:24:05,929 --> 01:24:12,236
fund. This includes our base budget. Um, the base budget does include some, uh some

943
01:24:12,236 --> 01:24:17,140
increases such as uh for our public safety contract and step increases our $3.9 million

944
01:24:17,140 --> 01:24:21,412
those are included in the base budget. Then we take on from the base budget. We have our

945
01:24:21,412 --> 01:24:26,984
new spending, our new programs totaling $6.2 million proposed again bringing in the total

946
01:24:26,984 --> 01:24:33,824
general fund proposed budget $199.4 million. Zooming out again to the citywide view,

947
01:24:33,824 --> 01:24:40,131
this chart shows the $684.1 million of the proposed budget by use of funds, so $298

948
01:24:40,131 --> 01:24:45,350
million is for our community investment program. These are large capital expansions of the

949
01:24:45,350 --> 01:24:50,174
roadway utility trail systems um, also completion of our wastewater treatment plant

950
01:24:50,174 --> 01:24:54,445
expansion and uh facilities approved in our 2023. >> voter approved.

951
01:24:54,445 --> 01:25:00,250
>> an obligation bonds proposed budget includes $50 million to operate our parks and rec

952
01:25:00,250 --> 01:25:04,455
department, sports tourism department and the round rock public library. Kind of those

953
01:25:04,455 --> 01:25:09,660
recreation and culture items includes $99 million for public safety for the round rock

954
01:25:09,660 --> 01:25:14,331
police department and the round rock fire department, and it includes $46 million for

955
01:25:14,331 --> 01:25:19,360
operations of the water and wastewater services, stormwater, solid waste and

956
01:25:19,360 --> 01:25:25,676
recycling. Looking at our five year community investment plan. So again this is five years

957
01:25:25,676 --> 01:25:33,476
fiscal year 2027 and um for consecutive years thereafter we have planned expenses of $927.7

958
01:25:33,918 --> 01:25:39,657
million. You can see in the chart kind of by um by use of funds water and wastewater is

959
01:25:39,657 --> 01:25:45,729
the largest one transportations uh second um again expansions for the city's roadway water

960
01:25:45,729 --> 01:25:52,636
and wastewater systems 54% of these planned expenses are to be cash funded um 41% is

961
01:25:52,636 --> 01:25:56,374
planned to be debt funded with the balance coming from the city's partner on that brushy

962
01:25:56,374 --> 01:26:02,480
creek regional wastewater treatment plant expansion project. Our proposed tax rate

963
01:26:02,480 --> 01:26:08,119
again is 42.3 cents. This table here shows the various components. One of the point

964
01:26:08,119 --> 01:26:13,291
out because we saw a decrease in our overall assessed value on tax rate are no new revenue

965
01:26:13,291 --> 01:26:18,562
tax rate. They're the second line from the bottom has increased to 38.5 cents. That

966
01:26:18,562 --> 01:26:23,601
kind of forms the starting point for our tax rate calculations. The proposed rate

967
01:26:23,601 --> 01:26:32,810
of 42.3 cents is an increase of 3.8 cents, or 9.8% above that no new revenue tax rate. The

968
01:26:32,810 --> 01:26:36,130
purpose of this increase is shown there in the blue rectangle the bottom of the

969
01:26:36,130 --> 01:26:41,685
screen we have 9/10 of a cent for public safety that's seven new police officers um one new

970
01:26:41,685 --> 01:26:47,491
civilian position the police department, 15 new firefighters and one new civilian position

971
01:26:47,491 --> 01:26:53,297
in the fire department. Um half a cent of the increase is for operating and maintenance costs

972
01:26:53,297 --> 01:26:57,869
of those um facilities scheduled to open in fiscal 2027 that are funded by our

973
01:26:57,869 --> 01:27:03,507
voter approved an obligation bonds largest of those planned for 26 fiscal year 2027 is our

974
01:27:03,507 --> 01:27:08,979
athletic performance center um new rec center open at old settlers park that'll have

975
01:27:08,979 --> 01:27:13,417
2017 and parks and recreation for kind of operating the facility in three in general

976
01:27:13,417 --> 01:27:19,990
services facility maintenance and custodial services at the facility in 2.4 cents of the

977
01:27:19,990 --> 01:27:24,829
tax increase is for debt for the additional debt service for those voter approved bond

978
01:27:24,829 --> 01:27:33,229
projects. The median valued home in round rock for this upcoming tax year is $370,288.

979
01:27:34,710 --> 01:27:39,443
the owner of this valued home, based on the proposed rate of 42.3 cents, would have a

980
01:27:39,443 --> 01:27:47,400
property tax bill of $1,566 a year or that breaks down to $131 a month. The increase over

981
01:27:47,400 --> 01:27:56,313
that no new revenue tax rate is $11.64 per month. Single family homes make up 92% of the

982
01:27:56,313 --> 01:28:02,253
parcels in the city, but only make up 48% of the taxable value for this upcoming fiscal

983
01:28:02,253 --> 01:28:07,291
year. Um commercial properties on their hand make up 8% of the number of parcels but

984
01:28:07,291 --> 01:28:12,960
contribute 52% of the property tax revenues. Um again the commercial properties help

985
01:28:12,960 --> 01:28:16,100
reduce the burden on our residential property tax payers. In that note on the

986
01:28:16,100 --> 01:28:19,870
bottom single family homes pay only 18% of general fund revenues needed for

987
01:28:19,870 --> 01:28:26,760
city services. I wanted to point out that there are a lot of different requirements under

988
01:28:26,760 --> 01:28:32,160
state law for the how we have to um, calculate and present calculations related to the

989
01:28:32,160 --> 01:28:36,887
budget and the property tax rate. Um, the top line this is specific motion language uh.

990
01:28:36,887 --> 01:28:40,291
that is required for council to use. >> should you.

991
01:28:40,291 --> 01:28:46,363
>> wish to adopt the property tax rate and item each for this evening. Um again that 9.8% is

992
01:28:46,363 --> 01:28:51,902
the increase of our proposed tax rate over that no new revenue rate. Um won't read

993
01:28:51,902 --> 01:28:55,500
through all of these but just again wanted to talk through these are all required by state

994
01:28:55,500 --> 01:28:59,643
law. They are all calculated accurately and they all end up being very confusing because

995
01:28:59,643 --> 01:29:03,380
they seem different and they're published in different places. But we are in compliance with

996
01:29:03,380 --> 01:29:10,530
state law throughout on all of them. This chart I presented tuesday morning hasn't changed

997
01:29:10,530 --> 01:29:14,958
since then but again this is subject to change as our various benchmark communities

998
01:29:14,958 --> 01:29:19,930
are also having city council meetings considering proposed tax rates this time of year so

999
01:29:19,930 --> 01:29:24,735
my team will continue to update this will present this again on september the 10th at our next

1000
01:29:24,735 --> 01:29:28,605
city council meeting again subject to change. Every city has different regards to

1001
01:29:28,605 --> 01:29:34,445
services provided in the phase of the bond cycle there in um again much of our increase this

1002
01:29:34,445 --> 01:29:39,683
year is really due to our continued um investment in the community through those bond

1003
01:29:39,683 --> 01:29:46,890
projects approved by the voters back in 2023. At the time um 6.9 cents was communicated as a

1004
01:29:46,890 --> 01:29:51,227
total tax rate increase for those bonds um up to the current fiscal year we kind of

1005
01:29:51,227 --> 01:29:57,567
used $0.03 of that um 2.9 cents is being used in the proposed tax rate again that is for the

1006
01:29:57,567 --> 01:30:01,237
maintenance and operation cost as well as a debt service on those bonds as we continue to

1007
01:30:01,237 --> 01:30:06,744
deliver those projects to the community. Reminder where we are in the budget timeline, we

1008
01:30:06,744 --> 01:30:11,448
have the first reading and public hearing for the budget and tax rate on tonight and is

1009
01:30:11,448 --> 01:30:14,518
scheduled to. >> be a final. Adoption of the budget tax rate next council

1010
01:30:14,518 --> 01:30:20,590
meeting september the 10th. Are we've had budget information on our city website. We've had

1011
01:30:20,590 --> 01:30:25,290
budget information put out on social media by communications and marketing team with little

1012
01:30:25,290 --> 01:30:30,934
over 100,000 impressions on social media, a little over 10,000 engagements and uh

1013
01:30:30,934 --> 01:30:37,741
almost 3000. Budget related website page views um through this year's budget process the

1014
01:30:37,741 --> 01:30:42,646
taxpayer websites williamson property texas.org and travis texas.com these are required

1015
01:30:42,646 --> 01:30:48,418
databases um required by the state that the um county tax offices put out where residents

1016
01:30:48,418 --> 01:30:52,389
can go out enter their address and see the overlapping taxing entities along with the

1017
01:30:52,389 --> 01:30:57,361
proposed tax rates um, as they track through the process. We've had information out on

1018
01:30:57,361 --> 01:31:01,198
our public access television channel available in hard copy at the round rock public

1019
01:31:01,198 --> 01:31:07,338
library and again put some information out on social media. Um, we have the debut

1020
01:31:07,338 --> 01:31:11,508
tonight of our fiscal 2027 budget video this has been put together by our communications

1021
01:31:11,508 --> 01:31:21,108
and marketing department and I. >> believe. They're going to. >> show it at this time. I see

1022
01:31:23,853 --> 01:31:32,853
it. Everywhere growth. Change. ,communities trying to keep up but not here. It doesn't. Make

1023
01:31:33,463 --> 01:31:38,669
sense. How does. Brown rock do it? The roads. The parks, the. Events.

1024
01:31:38,669 --> 01:31:46,743
>> public safety investments the donuts they must be hiding something. And I'm going to

1025
01:31:46,743 --> 01:31:50,943
find. >> out what it is. Signs everywhere.

1026
01:31:54,585 --> 01:32:01,785
>> I turn there are signs planning behind the scenes, plotting. Pouring, working.

1027
01:32:05,963 --> 01:32:11,363
building all this progress. But where does it lead?

1028
01:32:25,816 --> 01:32:32,756
how long has this been going on? How many. People are involved? How do they mow all

1029
01:32:32,756 --> 01:32:39,956
this grass? It can't be a coincidence everything is connected somehow somewhere.

1030
01:32:54,678 --> 01:33:04,278
the more I look the more questions I find who plans these things? Who build stuff,

1031
01:33:05,355 --> 01:33:14,355
how many restrooms are there? Where are your parents? We're going to. Oh, here's the

1032
01:33:25,509 --> 01:33:32,983
school. Hey, sir. Um. >> you're. Scaring people. >> can you please just get out

1033
01:33:32,983 --> 01:33:42,926
of here? Everything seemed to be running so smoothly there had to be a secret and I was

1034
01:33:42,926 --> 01:33:51,326
going. To need. >> some help. What I need are answers. Uh, well, good luck

1035
01:33:52,336 --> 01:33:54,336
with that.

1036
01:34:02,980 --> 01:34:10,780
I guess this is where it all began. >> this round. Ish rock started

1037
01:34:12,223 --> 01:34:17,230
it. >> I must be getting close. What does.

1038
01:34:23,568 --> 01:34:30,168
>> it. All mean? And what does that. I am definitely close.

1039
01:34:46,390 --> 01:34:48,390
yeah, yeah.

1040
01:34:59,470 --> 01:35:06,700
round rock city hall of course. .wrapping up investments, talking about.

1041
01:35:06,944 --> 01:35:13,217
>> projections. About this year's budget. I need. >> to. Know. How it all comes

1042
01:35:13,217 --> 01:35:20,417
together. I can answer that. It's all the budget. City leadership develops.

1043
01:35:24,494 --> 01:35:28,432
distributed plan and decides how. Funding needs to be allocated to. Meet the. Needs

1044
01:35:28,432 --> 01:35:32,303
and desires. >> of our growing community. This year's proposed. Budget

1045
01:35:32,303 --> 01:35:36,574
prioritizes public. Safety with 24 new positions. >> between the fire and. Police

1046
01:35:36,574 --> 01:35:40,277
department. We're investing millions. In road. >> expansion in our long.

1047
01:35:40,277 --> 01:35:45,749
>> term. Water supply and delivering on voter. Approved bond projects. This year's.

1048
01:35:45,749 --> 01:35:51,288
proposed property tax. >> rate. Is 42.3 cents, which is about $131 a. Month for the

1049
01:35:51,288 --> 01:35:54,291
typical homeowner. And thanks to. >> round rock's half cent

1050
01:35:54,291 --> 01:35:59,129
sales. Tax dedicated. >> to. Property tax reduction. That homeowner saves. About

1051
01:35:59,129 --> 01:36:07,371
$470 a year. It's not a secret. It's sound fiscal plan all the facilities. Roads, services,

1052
01:36:07,371 --> 01:36:10,173
staffing. >> they're all planned for through. The budget.

1053
01:36:10,173 --> 01:36:20,840
>> we do it every year. The budget for you guessed I don't think I brush my teeth this

1054
01:36:20,840 --> 01:36:29,684
morning. Also we're not only from car weight who changes the colors on the traffic segments?

1055
01:36:34,198 --> 01:36:41,398
discover the truth behind the truth visit round rock texas.gov/budget.

1056
01:36:51,150 --> 01:37:01,150
all right any any. Questions on this for. Uh kevin uh council. Member stevenson. First of all.

1057
01:37:02,326 --> 01:37:07,298
>> good job. Sarah good job neil I'm. Worried that we might lose him to a career in acting.

1058
01:37:07,298 --> 01:37:11,969
but nice job. >> on that. Um two questions. Can you go back to. The second.

1059
01:37:11,969 --> 01:37:21,969
I think it was the second slide. One more. I think it was the new maybe. Keep going.

1060
01:37:24,515 --> 01:37:29,320
>> I was the. New one. That. You. Added I. Think this one right here. So if I'm reading

1061
01:37:29,320 --> 01:37:36,427
it correctly. On our base. Budget the. Highest one is the fire. Department correct. With

1062
01:37:36,427 --> 01:37:42,899
the new. We aren't showing in this table the the breakdown of the department make up of the

1063
01:37:42,899 --> 01:37:47,872
base budget. When we look at the new ad the new spending by department the highest dollar

1064
01:37:47,872 --> 01:37:52,576
amount is fire department. Um they have 16 fte 15 firefighters and one civilian

1065
01:37:52,576 --> 01:37:55,145
position. Correct okay perfect. I just want. >> to make sure I was. Reading

1066
01:37:55,145 --> 01:37:56,747
it right. >> yes, ma'am. >> and second, if you don't

1067
01:37:56,747 --> 01:38:00,551
have this. Answer it's. Okay because. It's a kind of an on the. Spot question. But I know

1068
01:38:00,551 --> 01:38:05,422
property values are down. Um, the. Appraisal district. >> has. Said that..

1069
01:38:05,422 --> 01:38:08,692
>> do you know how many? Just a rough estimate. >> how many properties in.

1070
01:38:08,692 --> 01:38:13,640
round rock had a. Decrease in their appraised. Value versus increase?

1071
01:38:13,640 --> 01:38:18,335
>> I don't have that number. I know that um the the median value decreased a little over

1072
01:38:18,335 --> 01:38:22,440
6% but I don't have with me um tonight the number that decreased. Okay.

1073
01:38:22,440 --> 01:38:27,111
>> I was just curious. Thank you. >> any other questions on this

1074
01:38:27,111 --> 01:38:32,716
one? Questions councilmember fleming. Just keeping on the same page the total new

1075
01:38:32,716 --> 01:38:39,890
spending 6.2 million that would be equivalent to the point $0.09 increase for me. No

1076
01:38:39,890 --> 01:38:43,795
that's where you're getting this point $0.09 when we look at. Property tax or. Not this.

1077
01:38:43,795 --> 01:38:52,690
would be um both for the public safety and the ima. No from the tax rate side of the the

1078
01:38:52,690 --> 01:38:57,975
increase of the tax rate, this new spending would correspond to um both the maintenance and

1079
01:38:57,975 --> 01:39:00,878
operations of those new bond facilities. You see that especially in parks and

1080
01:39:00,878 --> 01:39:05,182
recreation general services and then the public safety investments in fire. So it's

1081
01:39:05,182 --> 01:39:11,155
kind of combined the admin bond versus just the maintenance okay. Thank you for clarifying.

1082
01:39:11,155 --> 01:39:20,931
your questions. Uh I. Have a couple. Real quick on um. You mentioned on the bond you know,

1083
01:39:20,931 --> 01:39:28,872
that we had when we uh uh asked the. Voters to. Pass that. That we said it would be 6.9 cents.

1084
01:39:28,872 --> 01:39:36,114
you said we're right around $0.03. Uh, it doesn't mean that we. Might ever get to

1085
01:39:36,114 --> 01:39:41,351
the six nine, right? I mean, with sales tax, general sale finance we pay off one time

1086
01:39:41,351 --> 01:39:45,822
expenditures and stuff, right? Yes. >> since 2023 up to the current

1087
01:39:45,822 --> 01:39:51,195
fiscal year 2026 we've used $0.03 of that and then we're using 2.9 cents this year. So

1088
01:39:51,195 --> 01:39:55,699
that'll bring us to 5.9 cents. We'll have $0.01 left. Whether or not we use it will probably

1089
01:39:55,699 --> 01:40:01,872
depend on market rates. Um this. Is the big year of opening new bond projects and

1090
01:40:01,872 --> 01:40:05,609
having those kind of maintenance costs, those maintenance and operating costs

1091
01:40:05,609 --> 01:40:10,347
are hitting big this year. We still do have some phased it planned issuances of those

1092
01:40:10,347 --> 01:40:15,718
voter approved and on vacation bonds over the 2028 and 2029, but those are smaller dollar

1093
01:40:15,718 --> 01:40:19,390
amounts as we finish those projects and deliver them to the community. Okay.

1094
01:40:19,390 --> 01:40:26,297
>> um and then the you know, you you showed a slide on here where. About 18. You know, the.

1095
01:40:26,297 --> 01:40:35,897
the residential property owner pays about 18% of the general fund revenue. So if I mean. If

1096
01:40:36,776 --> 01:40:45,152
it's. 48% of. It's where. The uh, revenue comes from. Uh, so we're only doing 18 but we.

1097
01:40:45,152 --> 01:40:50,124
make up the rest of that through sales tax and other fees and stuff. Right?

1098
01:40:50,124 --> 01:40:53,794
>> it's through sales tax through their property taxes that our commercial properties

1099
01:40:53,794 --> 01:40:58,398
pay. Right. >> so if we didn't have if we didn't have the sales. Tax it

1100
01:40:58,398 --> 01:41:03,704
would be a much higher price. Uh and if we didn't have commercial it'd be much higher.

1101
01:41:03,704 --> 01:41:06,306
yes, sir. >> okay. >> all right.

1102
01:41:06,306 --> 01:41:14,706
>> any other questions comments .all right I'll entertain a. Motion to adopt what? Uh,

1103
01:41:16,316 --> 01:41:23,724
sorry. Obviously is a public. Hearing open the public hearing on. Item h three. Anybody

1104
01:41:23,724 --> 01:41:29,896
wishing to speak on. >> this item? All right. Seeing none of the is closed.

1105
01:41:29,896 --> 01:41:34,801
entertain a motion. Adopt the ordinance. So moved. >> oh sorry. He one that's okay

1106
01:41:34,801 --> 01:41:41,700
.so moved second. Motion made by councilmember stevens. Second by councilmember ortega.

1107
01:41:41,700 --> 01:41:48,810
any other discussion and please pull the council. Council member stevens yes. Mayor pro

1108
01:41:48,810 --> 01:41:52,219
tem montgomery. Yes. Council member lee. Yes. Council member flores. Yes.

1109
01:41:52,219 --> 01:41:57,910
>> council member fleming. Yes. Council member. Ortega. Yes. >> mayor morgan. Yes.

1110
01:41:57,910 --> 01:42:02,563
>> all right. Age for consider public testimony regarding in an ordinance adopting the 2026

1111
01:42:02,563 --> 01:42:04,865
property tax rate for the city of rome like first reading requires.

1112
01:42:04,865 --> 01:42:09,770
>> two readings. No additional presentation. >> mayor and I have a I have a

1113
01:42:09,770 --> 01:42:15,708
question on this. So going back to your slide we're talking. >> about new revenue and you.

1114
01:42:15,708 --> 01:42:25,708
know where it shows the where you had it on where it went toward. So you know you hear.

1115
01:42:26,419 --> 01:42:34,527
>> you. Hear a lot. You know about adopting the no new revenue rate right. So if we

1116
01:42:34,527 --> 01:42:41,268
adopted the no new revenue rate that would. Generate from our new. Growth about $1.9 million

1117
01:42:41,268 --> 01:42:46,606
right? Yes sir. >> that's correct. So somewhere in that 6.2 would have to be

1118
01:42:46,606 --> 01:42:55,348
cut. Yes okay. And talking. About base budget and stair step pay raises that are

1119
01:42:55,348 --> 01:43:02,155
already. Done by. Agreement with the police and fire they're. Scheduled to get a

1120
01:43:02,155 --> 01:43:06,894
rough low. >> over. 2 million and raises next year. The combined cost

1121
01:43:06,894 --> 01:43:11,131
for the fire and police department they're both their step increases that they get by

1122
01:43:11,131 --> 01:43:16,569
contract as well as the contract increases. Those are $3.9 million so. 3.9 million so

1123
01:43:16,569 --> 01:43:25,946
so it doesn't the new the the no new revenue no the in enr doesn't even cover the the pay

1124
01:43:25,946 --> 01:43:31,651
stair step increases. We're not even talking about the new stuff. It doesn't even pay the

1125
01:43:31,651 --> 01:43:40,590
the enough to pay our police. >> and. Fire what we've agreed to. Correct okay. Right that's

1126
01:43:40,590 --> 01:43:50,590
all I have right now. Anybody have any questions on this for. All right. This is a public

1127
01:43:50,404 --> 01:43:56,810
hearing. I will. >> call I've got two cards. Um I'll just call the ones I.

1128
01:43:56,810 --> 01:44:02,810
>> have. Justin tankersley. Let her. >> do the speaking to. Sure.

1129
01:44:06,753 --> 01:44:10,790
you guys see. >> me again? Um. >> justin tankersley 2252.

1130
01:44:10,790 --> 01:44:15,329
>> on the crossing trail. Um. I feel. Like last. Time we spoke it was.

1131
01:44:15,329 --> 01:44:21,701
>> over data centers. Um, and that was supposed to. Be, uh. The save all for us so that. We

1132
01:44:21,701 --> 01:44:26,774
didn't have to increase our property taxes. Um, that was what was. Promised, right?

1133
01:44:26,774 --> 01:44:31,645
>> we're going to get so much money off of property tax money from these guys that you.

1134
01:44:31,645 --> 01:44:37,784
>> know, we get to have. Low property taxes. Uh, obviously we knew that wasn't going to be

1135
01:44:37,784 --> 01:44:39,753
the. >> case. And here we. >> are six months later talking

1136
01:44:39,753 --> 01:44:47,261
about property property tax increase uh so disappointed to say the least. Um and the water

1137
01:44:47,261 --> 01:44:51,398
damage that we were talking about that previously as well uh, in our last meeting and I

1138
01:44:51,398 --> 01:44:54,702
knew that this was going to increase uh, and with data centers right.

1139
01:44:54,702 --> 01:45:00,207
>> we're going to. Have more water usage. That price is going to continue to increase.

1140
01:45:00,207 --> 01:45:06,480
um, and then we're talking about how the water utility energy rate is going up. And so

1141
01:45:06,480 --> 01:45:11,510
I mean these data centers are going to bring in use way more electricity. And that's.

1142
01:45:11,510 --> 01:45:15,389
>> just. Going to continue to increase. And not only is that affecting the businesses but

1143
01:45:15,389 --> 01:45:18,691
it's also affecting us right. And I feel like the residents are kind of always getting the

1144
01:45:18,691 --> 01:45:26,566
flat end of the uh uh the deal. Um and so it's not. Doesn't seem fair. Um, that we always

1145
01:45:26,566 --> 01:45:31,939
have to foot the bill. Um I mean the guy was talking about the water. It's a choice for us

1146
01:45:31,939 --> 01:45:37,110
to water our grass, right? To use water at our own homes. But it's an absolutely right for

1147
01:45:37,110 --> 01:45:42,515
the businesses to use water. It's just it just seems really convoluted to me. So that's

1148
01:45:42,515 --> 01:45:46,986
what I got and I obviously don't think that we need to increase our taxes. Um I feel

1149
01:45:46,986 --> 01:45:51,291
like we pay enough uh um we're going to have all these businesses come in these data

1150
01:45:51,291 --> 01:45:59,980
centers that are going to be paying $600,000 in property every year plus. Right? So my.

1151
01:45:59,980 --> 01:46:07,400
questions anybody have any questions? Uh all right thank. >> you justin thanks guys. All

1152
01:46:07,400 --> 01:46:14,840
right gary oldham. Good evening gary. Oldham 2928. Clinton place. Round rock. Beckoned me.

1153
01:46:22,289 --> 01:46:26,927
>> when property was on the. >> ballot. We were. Warned threatened. That if property

1154
01:46:26,927 --> 01:46:31,732
passed. We'd see. >> a. Tax increase. Well property failed. For a lot of

1155
01:46:31,732 --> 01:46:35,568
reasons. And yet here we are with. >> a. Nearly 14% property tax

1156
01:46:35,568 --> 01:46:40,273
rate. Increase on the table. Let's be clear. >> the city's. Touting 15.

1157
01:46:40,273 --> 01:46:43,676
>> new firefighter positions. That's a. >> good thing. But in reality.

1158
01:46:43,676 --> 01:46:48,282
those positions are to. Staff a new fire station. Those additional positions do nothing

1159
01:46:48,282 --> 01:46:53,190
.to change the fact that. 73% of. >> our current. Fire apparatus

1160
01:46:53,190 --> 01:46:57,195
are. Staffed below. The national. Minimum standard. That's not changing. With this.

1161
01:46:57,195 --> 01:47:00,732
>> and it's. >> worth. Noting as well. >> that parks and rec is

1162
01:47:00,732 --> 01:47:05,837
getting more new. Positions than either. Police or fire. Mr. Tankersley just. Spoke on.

1163
01:47:05,837 --> 01:47:09,808
the promise. >> of data centers. Being the. >> magical tax. Revenue cash

1164
01:47:09,808 --> 01:47:13,311
cow. >> that's. Going to keep our property taxes low. It's

1165
01:47:13,311 --> 01:47:18,517
shocking that we're not seeing that. Despite the. >> city having.

1166
01:47:18,517 --> 01:47:23,210
>> an ordinance. Section 16.1 90. >> or dash 190. It says the

1167
01:47:23,210 --> 01:47:28,426
city shall. Not may. Shall invoice those. Responsible for. >> a. Hazmat incident in order

1168
01:47:28,426 --> 01:47:34,866
to recover cost. 2024 the cb. >> data. Center had a battery. Storage system fire. That

1169
01:47:34,866 --> 01:47:38,603
caused city. >> fire department. Equipment to. Sustain a quarter. Million

1170
01:47:38,603 --> 01:47:42,841
dollars in damage. According to the. Response from my open records request, cb.

1171
01:47:42,841 --> 01:47:47,879
>> was never. Invoiced for nor paid that or any other amount to reimburse the city. The

1172
01:47:47,879 --> 01:47:53,785
city's failure. To heed their own. Ordinance in invoicing cb. And having.

1173
01:47:53,785 --> 01:47:57,989
>> the taxpayers eat that quarter million dollars in damage. Is tantamount to a gift

1174
01:47:57,989 --> 01:48:03,695
of. Taxpayer funds. And it's not responsible. Fiscal management. It old settlers

1175
01:48:03,695 --> 01:48:07,699
park where. >> some. $230 million in general. Obligation bonds

1176
01:48:07,699 --> 01:48:12,336
passed by. >> the. Few voters who voted in 2023. Apparently just. Isn't

1177
01:48:12,336 --> 01:48:16,536
enough to. Finish those. Projects between. >> 2026. And. 2027.

1178
01:48:17,208 --> 01:48:22,847
city council plans to issue. Another $42.3. >> million in certificates of

1179
01:48:22,847 --> 01:48:28,153
obligation to fund additional. Work at old settlers park. Those certificates of

1180
01:48:28,153 --> 01:48:30,322
obligation are just. >> like bonds. Taxpayers will be.

1181
01:48:30,322 --> 01:48:35,727
>> paying that debt. Service for the next. 20 years. Except certificates of obligation. The

1182
01:48:35,727 --> 01:48:39,980
voters have no say. Those decisions are made by a simple majority.

1183
01:48:39,980 --> 01:48:44,235
>> of city. Council round is already around a half billion dollars in debt and that figure

1184
01:48:44,235 --> 01:48:48,273
keeps going. Up. >> and debt repayment. Is a big. Component of why we're

1185
01:48:48,273 --> 01:48:53,845
seeing. A property. Tax rate on the table. I think. >> a lot of citizens would like

1186
01:48:53,845 --> 01:49:01,920
to know is. When will. Enough actually. Be enough? Thank you gary. All right. Anybody else.

1187
01:49:01,920 --> 01:49:07,659
wishing to speak? All not seeing the public hearing is closed. Entertain a motion up

1188
01:49:07,659 --> 01:49:14,899
the ordinance. So moved. >> I'm oh I'm sorry. I move that the. Property tax rate. Be

1189
01:49:14,899 --> 01:49:22,699
increased by. The adoption of the tax. Rate of. 0.423000. >> which is effectively a. 9.8%

1190
01:49:24,800 --> 01:49:30,548
increase in the tax rate. I have a second second I have a. Motion made by the mayor pro

1191
01:49:30,548 --> 01:49:36,153
tem second by councilman ortega. Any other discussion. And please public council.

1192
01:49:36,153 --> 01:49:42,940
mayor pro tem montgomery yes. Council member lee. Yes. >> council member flores. Yes.

1193
01:49:42,940 --> 01:49:46,331
>> council member. Fleming. Yes. Council member. Ortega. Yes. Council member. Stevens.

1194
01:49:46,331 --> 01:49:50,268
yes. Mayor morgan. Yes. >> all right. >> council comments..

1195
01:49:50,268 --> 01:49:54,705
>> growing items of community interest. Councilmember lee. Good night. I'm not.

1196
01:49:54,705 --> 01:49:59,945
councilmember floors. Good night, round rock. Councilmember fleming. Good

1197
01:49:59,945 --> 01:50:05,917
night round rock. Councilmember ortega good night roll. Rock councilmember stevens good.

1198
01:50:05,917 --> 01:50:09,554
night round rock. Mayor pro tem. Good night round. Rock and I'll say good night.

1199
01:50:09,554 --> 01:50:11,000
>> we're adjourned some 58.