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Don't do that.

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» But it shows that you

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» God gave me two of these.

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» I can tell you there.

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» Trust me. Those bunches that he gave me,

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I use.

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» It is 5:30. I call to order this special

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city council meeting September 2nd. 125

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at 5:30. Please note that we do have a

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quorum present on our agenda tonight.

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Item number two, first reading,

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discussion of possible action on an

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ordinance amending ordinance 2024-10-03

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to reflect modifying city of commerce

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water and wastewater rates for FY2026.

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Mr. Lisby, city manager.

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» Mayor, council, thank you for the

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opportunity to present tonight. uh we

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took what is normally a workshop and and

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asked for a special council meeting. Uh

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as part of our annual budget adoption

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process uh in addition to the the budget

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adoption, the tax rate adoption, we

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typically have an additional process to

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adopt water and wastewater fees um and

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solid waste or trash collection fees. Um

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and we do two readings of those

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ordinances. And so in order to get them

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uh adopted in September in conjunction

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with the budget, we needed a first

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reading at the workshop and the second

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reading will be uh subsequently in our

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regular uh September meeting. And so uh

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in setting up the conversation for the

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water and wastewater rates, uh I want to

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take a couple of steps back u revisit

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some of the material we talked about in

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our last meeting when we were discussing

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tax rates. um because tax rates, utility

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rates um are all part of support of the

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budget that's being adopted. And if all

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I did was put the rates in front of you

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without the context of where it fits in

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the overall budget, uh that might not be

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as beneficial for the council or for the

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public. And so I want to talk just

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briefly uh about the services that local

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government provides and then the rates

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that generate the revenues necessary to

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cover the cost of those services. Uh it

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is uh increasingly popular uh in Texas

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and across the US uh to um to rant and

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rave about the growth of government uh

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the waste, fraud, and abuse of the

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expenditures within government. Uh and

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I'm typically tend to agree with most of

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those sentiments. uh and at most levels

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of government there is a lot of

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inefficiency

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uh because it doesn't typically operate

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exactly like the private sector does. Uh

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at the local government level which is

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the closest form of government that

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you're ever going to reside to. uh there

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are some services that we provide that

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it's practically not possible to operate

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like uh a for-profit business or or like

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the business world does. And so as we

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talk about the taxes or the rates and

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the cost it has on the citizens uh I

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want to provide some perspective of the

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value of the services that those rates

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support and the role that those services

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play. Uh so on the screen uh you've got

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a graph that is um the expense budget

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for the general fund and I know this

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particular item is talking about water

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rates. Uh but as you look at each

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department and each service that is

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provided to our local community, uh I

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want to point out that most all of these

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services are services that the private

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sector can't or won't provide because

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there is not a business model that works

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uh in a typical for-profit environment.

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So, as an example, fire and emergency

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services. Uh the capital cost, the

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barrier cost of entry to have a

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privatelyun fire department uh in a

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local community. Uh the capital cost, as

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we just saw, uh with a ladder truck

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being $1.9 million, uh engine 3 being

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$900,000 and change, brush truck being

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almost $400,000.

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uh the equipment necessary to provide

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those services is very costly. Um and

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there's not a business model in which

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you can build the people that use the

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service. Uh and so what typically

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happens in those public services that

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are necessary for a healthy community,

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but there is no business model in which

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you build the users of that service. uh

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if the private sector did it then you

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would have a large number of people

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taking advantage of the service using

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the service but not paying anything

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towards the cost of the service and so

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it unfairly shifts the burden of those

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costs to a small group of users where a

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large group of users get to benefit from

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those services. Uh and so police, fire,

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uh parks and recreation, code

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enforcement, uh municipal court, public

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library, all of these services are

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necessary for a healthy and vibrant

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community. But there's not a method in

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which you can build the users in a way

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that makes that cost affordable or makes

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that service sustainable. And so

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governments use taxes of one form or

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another to generate the revenue

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necessary to provide those services. So

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a tax is different than a fee and that

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the purpose of the tax is purely to

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raise revenue and you need enough

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revenue to cover the cost of the

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services and the amount of the tax is

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not tied to the cost of the service. It

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just generates revenue necessary to

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cover the cost of all the services that

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are provided. Um and so as we look at uh

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property taxes or taxes that are

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provided in our community, these are the

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services. a lot of numbers on this

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screen. Um, but on the right hand side

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is a basic summary of our general fund.

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Um, public safety services, our police,

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fire, animal control, municipal court,

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and emergency management. Uh, that

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totals $4,621,377

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or 55.9%

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of the general fund expense budget. Um,

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property taxes bottom left. Uh this

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budget anticipates $3,92,395

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of operating and maintenance property

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tax revenue. And so the property taxes

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that we receive don't cover the full

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cost of public safety. Uh and public

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safety is the fundamental most basic

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service that we provide to our

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community. Uh and so when you look at

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the revenues generated from these taxes,

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uh property taxes doesn't even cover the

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cost of that fundamental public safety

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component. Uh and so we have a whole

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list of other services and fees and and

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charges that we use to try to recover uh

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the cost of all of the services that are

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provided. But generally for the general

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fund, public safety is $4.6 million.

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Non-public safety is $3.6 6 million for

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a total of about uh 8.2 $8.3 million of

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expenditures. Now, within the tax base,

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it's it's interesting to see um there's

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going to be a lot of charts and colors

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here. I'll try to move through them

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quickly, but if you look at the number

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of properties or tax accounts that are

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each classification, uh residential

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properties uh are roughly 50% of the tax

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accounts or tracks of land uh that are

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within our community. Uh 615 of those

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are vacant land uh which don't have a a

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land use associated with them. Uh then a

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and commercial uh make up the the

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remaining portions. Um so there's just

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how the land is used shaking it out. Uh

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how the acres uh so if residential is

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almost 50% of the accounts uh there are

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596.7

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acres uh of the total acreage of our

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community. Uh so a land uh is the

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largest uh amount of land within our

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community and then the tax exempt is the

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second largest amount of land within our

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community. Uh within those categories

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the new value that was added in this

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last year almost all over 75% of the new

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value added our community was

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residential in nature. uh the rest was

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commercial uh land use that had new

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development, new additions. Um now of

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the total city uh the market value uh

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right at $1.6 billion of valuation in

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total. Um residential is at $377 million

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of valuation. Then you've got a small

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sliver that's vacant a land. So again,

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if you look at the number of acres of a

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land as a huge portion of our community,

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the value of that land is relatively

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small uh in terms of market value for

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our community, but

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55% of the value of our community is

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listed as tax exempt. Um and so the

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taxable value uh then moves into

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residential properties are the of or

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probably 55% of the taxable value of our

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community are associated with

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residential properties. That's single

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family and multif family uses. Um

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commercial is the next largest and

213
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industrial after that. Uh so if you look

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at the total value of our community,

215
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there's a huge chunk of the value of our

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community that's tax exempt and it comes

217
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off the table. So of a $1.6 billion

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valuation,

219
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roughly $660 million of that uh is

220
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taxable. And so the majority of the tax

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value in our community that is taxable

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falls on the residential customers. And

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so as we look at the cost of the

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services that we showed at the beginning

225
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and how we distribute the cost of those

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services, these are all essential

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services that the community needs to be

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healthy and vibrant. And unfortunately

229
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the residential class property owners in

230
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this community have to bear over half of

231
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the cost of those services because of

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how the property is is laid out within

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our community. Um and so as we saw um in

234
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our last meeting uh the no new revenue

235
00:11:05,519 --> 00:11:12,000
tax rate which is calculated and given

236
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to us um by the state is 82 cents uh and

237
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the proposed budget that we have in

238
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front of us that bottom line uh proposed

239
00:11:17,600 --> 00:11:22,959
rate is 83 cents and some hanging

240
00:11:20,480 --> 00:11:26,640
decimals. Uh and so there is a slight

241
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tax rate increase uh proposed for that

242
00:11:26,640 --> 00:11:31,360
budget. And again, uh, we recognize that

243
00:11:29,519 --> 00:11:34,079
there's some impact on the residential

244
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side because they have the majority of

245
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the taxable property, uh, within our

246
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community. Now, what the impact of that

247
00:11:39,360 --> 00:11:45,200
residential tax is going to be, uh, the

248
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median home value on this chart uh, is

249
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kind of in the middle. $184,611

250
00:11:49,279 --> 00:11:54,480
is the median value of a residential

251
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property uh, in our community. And so

252
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with the bottom line, that tax increase

253
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is 3 cents and some trailing decimals.

254
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Uh for that median home of $184,000,

255
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their annual tax bill will go up $58.51

256
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or approximately $4.88 a month. Uh is

257
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what the additional cost would be of

258
00:12:15,120 --> 00:12:19,200
that property tax. Again, we covered

259
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this last time, but I want to add that

260
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to the conversation as we talk about the

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impact of water um and sewer rates and

262
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what it will have on those residential

263
00:12:25,920 --> 00:12:32,800
customers. Now, for that tax rate, um

264
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we've looked at um this is the math that

265
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the state gives us. Very bottom line, uh

266
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you're going to have an additional

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$196,000

268
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of tax revenue uh from this tax rate

269
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that's being proposed. 111,000 of that

270
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is coming from new construction, mostly

271
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residential. Uh and so the tax increase

272
00:12:51,200 --> 00:12:56,000
as far as the state uh regulatory

273
00:12:53,600 --> 00:12:59,360
language is required is an additional

274
00:12:56,000 --> 00:13:02,160
$85,000 approximately of property tax

275
00:12:59,360 --> 00:13:04,720
revenue that we're asking for uh from

276
00:13:02,160 --> 00:13:07,920
the community and what is the value

277
00:13:04,720 --> 00:13:10,399
they're getting for that additional uh

278
00:13:07,920 --> 00:13:13,279
tax revenue. Uh we saw these numbers

279
00:13:10,399 --> 00:13:16,320
earlier on the public safety side. Uh

280
00:13:13,279 --> 00:13:18,000
we've got 10 uh new patrol vehicles uh

281
00:13:16,320 --> 00:13:20,880
that are in the budget for a total of

282
00:13:18,000 --> 00:13:24,800
$80,000 a year. Uh we've got fire engine

283
00:13:20,880 --> 00:13:28,560
number three uh that's $66,000 a year. A

284
00:13:24,800 --> 00:13:31,760
new public radio system, $70,000 a year.

285
00:13:28,560 --> 00:13:34,959
Uh an improved forensics at $12,000 a

286
00:13:31,760 --> 00:13:37,839
year. So just on public safety alone,

287
00:13:34,959 --> 00:13:40,160
we're asking for an additional $85,000

288
00:13:37,839 --> 00:13:42,480
revenue, but we're improving the level

289
00:13:40,160 --> 00:13:44,959
of service or adding new services to

290
00:13:42,480 --> 00:13:47,279
public safety uh as you see in those

291
00:13:44,959 --> 00:13:49,600
four line items. And then in parks

292
00:13:47,279 --> 00:13:51,760
recreation, uh we have the middle school

293
00:13:49,600 --> 00:13:54,240
gym uh that we are using as a rec

294
00:13:51,760 --> 00:13:55,839
center. Uh and then the significant

295
00:13:54,240 --> 00:13:57,519
improvements to the baseball fields at

296
00:13:55,839 --> 00:13:59,839
anymore. So there's a lot of

297
00:13:57,519 --> 00:14:02,880
improvements to the level of service

298
00:13:59,839 --> 00:14:07,279
that is being added uh for the relative

299
00:14:02,880 --> 00:14:08,959
cost of a monthly cup of coffee uh for

300
00:14:07,279 --> 00:14:11,120
residential uh for the average

301
00:14:08,959 --> 00:14:13,279
residents. Uh and so we feel like

302
00:14:11,120 --> 00:14:15,839
there's a tremendous amount of value the

303
00:14:13,279 --> 00:14:17,360
community is receiving uh for that

304
00:14:15,839 --> 00:14:20,639
conversation.

305
00:14:17,360 --> 00:14:22,399
uh as we start looking at uh the water

306
00:14:20,639 --> 00:14:26,000
utility

307
00:14:22,399 --> 00:14:29,279
uh within the water utility system uh

308
00:14:26,000 --> 00:14:32,480
86% of all water utility accounts are

309
00:14:29,279 --> 00:14:36,079
residential in nature. Uh we saw on the

310
00:14:32,480 --> 00:14:39,120
tax side uh residents for taxable value

311
00:14:36,079 --> 00:14:43,279
or about 55% of the community. Uh

312
00:14:39,120 --> 00:14:46,480
they're 86% of the accounts uh that we

313
00:14:43,279 --> 00:14:49,279
have and commercial is almost 11% of the

314
00:14:46,480 --> 00:14:51,120
accounts. Um and then the remainder are

315
00:14:49,279 --> 00:14:54,079
all small in terms of the number of

316
00:14:51,120 --> 00:14:57,680
accounts. If you look at consumption uh

317
00:14:54,079 --> 00:15:01,360
residential consump consumers use 42.7%

318
00:14:57,680 --> 00:15:05,199
of the water. Commercial uses 15.7% of

319
00:15:01,360 --> 00:15:08,399
the water. Uh institutional uses 13% of

320
00:15:05,199 --> 00:15:11,600
the water. Industrial uses 10. And then

321
00:15:08,399 --> 00:15:14,079
wholesale is 18.6% of the water that we

322
00:15:11,600 --> 00:15:16,720
produce uh goes outside of the community

323
00:15:14,079 --> 00:15:19,760
to rural users uh that we have wholesale

324
00:15:16,720 --> 00:15:22,560
contracts for. So while residential

325
00:15:19,760 --> 00:15:26,160
accounts are 86% of the accounts, they

326
00:15:22,560 --> 00:15:29,279
consume 42% of the water. Now on the

327
00:15:26,160 --> 00:15:31,440
water side for the revenue right now

328
00:15:29,279 --> 00:15:35,120
residential customers both single and

329
00:15:31,440 --> 00:15:37,680
multif family provide about 50 to 51% of

330
00:15:35,120 --> 00:15:40,240
the revenue. And so over the past

331
00:15:37,680 --> 00:15:42,800
several years we've seen that

332
00:15:40,240 --> 00:15:45,440
residential customers have typically

333
00:15:42,800 --> 00:15:48,880
subsidized commercial customers because

334
00:15:45,440 --> 00:15:52,000
they use less water at 42% but they

335
00:15:48,880 --> 00:15:53,440
provide more revenue at 50%. And so as

336
00:15:52,000 --> 00:15:55,440
we've been adjusting the rate

337
00:15:53,440 --> 00:15:58,959
structures, we've been slowly shifting

338
00:15:55,440 --> 00:16:01,759
that to par uh so that the class of

339
00:15:58,959 --> 00:16:03,920
customers that the revenue they generate

340
00:16:01,759 --> 00:16:08,160
should be consistent with the volume of

341
00:16:03,920 --> 00:16:10,800
water uh that they uh consume. Um but

342
00:16:08,160 --> 00:16:14,639
you'll see on the wholesale side,

343
00:16:10,800 --> 00:16:18,240
wholesale uses 18.6% of the water. They

344
00:16:14,639 --> 00:16:20,720
provide 9.2% of the revenue. Um and so

345
00:16:18,240 --> 00:16:23,040
as we are raising the rates uh that we

346
00:16:20,720 --> 00:16:26,240
charge to wholesale customers that is

347
00:16:23,040 --> 00:16:29,279
improving that scenario. Um sewer

348
00:16:26,240 --> 00:16:32,720
revenue u residential customers provide

349
00:16:29,279 --> 00:16:36,720
about 53.5% of the sewer revenue. Uh

350
00:16:32,720 --> 00:16:39,600
commercial is 15 institutional is 21 um

351
00:16:36,720 --> 00:16:42,639
industrial is 10 and we don't have uh

352
00:16:39,600 --> 00:16:44,880
wholesale sewer revenue customers. So,

353
00:16:42,639 --> 00:16:46,880
what we're asking for tonight in the

354
00:16:44,880 --> 00:16:50,240
ordinance, taking a look at how we're

355
00:16:46,880 --> 00:16:52,880
changing uh the water and sewer rates uh

356
00:16:50,240 --> 00:16:55,360
for the residential class customers, uh

357
00:16:52,880 --> 00:16:57,759
we still have what we call the lifeline

358
00:16:55,360 --> 00:17:00,160
rate for residential class customers.

359
00:16:57,759 --> 00:17:03,040
And so, that's the first 4,000 gallons

360
00:17:00,160 --> 00:17:05,760
of water consumption. That $4 per

361
00:17:03,040 --> 00:17:08,000
thousand uh consumption charge is

362
00:17:05,760 --> 00:17:12,240
actually below the marginal cost to

363
00:17:08,000 --> 00:17:13,919
produce that water. So,

364
00:17:12,240 --> 00:17:16,559
in theory, you could say that we're

365
00:17:13,919 --> 00:17:19,120
losing money on those 4,000 gallons uh

366
00:17:16,559 --> 00:17:22,959
because it cost us more than 4 thou $4

367
00:17:19,120 --> 00:17:25,919
a,000 to produce it. Um but it is uh

368
00:17:22,959 --> 00:17:28,079
essential for basic life necessity needs

369
00:17:25,919 --> 00:17:31,679
and so we protect that first 4,000

370
00:17:28,079 --> 00:17:33,840
gallons at a lower uh rate. It also

371
00:17:31,679 --> 00:17:35,840
protects uh the large number of our

372
00:17:33,840 --> 00:17:38,880
homes that are senior citizens or on

373
00:17:35,840 --> 00:17:42,960
fixed income. Um, and we'll see later

374
00:17:38,880 --> 00:17:46,400
that about 67% of our customers never

375
00:17:42,960 --> 00:17:49,200
get outside of that 4,000 gallons uh

376
00:17:46,400 --> 00:17:51,280
consumption range. But then as you use

377
00:17:49,200 --> 00:17:56,799
more water from there, the cost

378
00:17:51,280 --> 00:18:00,400
escalates. So 5,000 to 15,000 is $6.75.

379
00:17:56,799 --> 00:18:02,559
16 to 50,000 is $7.75.

380
00:18:00,400 --> 00:18:06,400
And if a residential account uses more

381
00:18:02,559 --> 00:18:08,799
than 50,000 gallons, then it's 875 uh

382
00:18:06,400 --> 00:18:13,360
per thousand after that.

383
00:18:08,799 --> 00:18:15,679
» Um potentially um multif family as

384
00:18:13,360 --> 00:18:17,440
apartment complexes uh they don't have

385
00:18:15,679 --> 00:18:20,559
the lifeline rate because you usually

386
00:18:17,440 --> 00:18:22,480
have one large meter for multiple units

387
00:18:20,559 --> 00:18:25,600
and there's no way for us to calculate

388
00:18:22,480 --> 00:18:27,919
that out uh than commercial, industrial,

389
00:18:25,600 --> 00:18:29,919
institutional and wholesale water

390
00:18:27,919 --> 00:18:32,000
contracts. the contracts that we have

391
00:18:29,919 --> 00:18:34,640
with those wholesale customers control

392
00:18:32,000 --> 00:18:37,440
how we escalate those rates. And so

393
00:18:34,640 --> 00:18:39,679
we've demonstrated that they use more

394
00:18:37,440 --> 00:18:42,480
water but provide less revenue. We're

395
00:18:39,679 --> 00:18:44,799
slowly working within the contracts we

396
00:18:42,480 --> 00:18:47,760
have uh to adjust those rates and bring

397
00:18:44,799 --> 00:18:50,400
some some equity there. Um on the sewer

398
00:18:47,760 --> 00:18:52,400
side again we have the same lifeline

399
00:18:50,400 --> 00:18:54,400
rate on the sewer charge for residential

400
00:18:52,400 --> 00:18:56,559
accounts. It is tied to your water

401
00:18:54,400 --> 00:18:59,679
consumption. So, the first 4,000 gallons

402
00:18:56,559 --> 00:19:02,720
of water consumption will also see a $4

403
00:18:59,679 --> 00:19:06,160
per thousand charge. Um, and then for

404
00:19:02,720 --> 00:19:08,400
residential accounts, anything above $4,

405
00:19:06,160 --> 00:19:11,840
it's that $7.75,

406
00:19:08,400 --> 00:19:15,760
but we cap that at 10,000 gallons uh of

407
00:19:11,840 --> 00:19:17,520
consumption because studies show that a

408
00:19:15,760 --> 00:19:20,480
residential account using more than

409
00:19:17,520 --> 00:19:22,000
10,000 gallons, um, most of that

410
00:19:20,480 --> 00:19:23,679
additional water is not going down the

411
00:19:22,000 --> 00:19:26,559
sewer line. that's probably a

412
00:19:23,679 --> 00:19:29,760
discretionary outside use uh on the yard

413
00:19:26,559 --> 00:19:31,200
or in a pool or washing a car. Um if my

414
00:19:29,760 --> 00:19:33,840
grandkids are there, they're playing in

415
00:19:31,200 --> 00:19:36,240
the sprinkler and so that water is not

416
00:19:33,840 --> 00:19:38,000
going down the sewer line. Uh and so the

417
00:19:36,240 --> 00:19:40,400
assumption we make there is anything

418
00:19:38,000 --> 00:19:43,039
less than 10,000 potentially is going

419
00:19:40,400 --> 00:19:44,480
down the line. Um may or may not, but we

420
00:19:43,039 --> 00:19:47,520
don't have a way to measure and know for

421
00:19:44,480 --> 00:19:49,039
sure. um multif family, commercial,

422
00:19:47,520 --> 00:19:51,200
industrial,

423
00:19:49,039 --> 00:19:55,600
all of their water consumption uh

424
00:19:51,200 --> 00:19:58,080
includes the sewer charge. Um and so um

425
00:19:55,600 --> 00:20:00,720
the impact of that, we saw the impact of

426
00:19:58,080 --> 00:20:04,240
the tax uh rate that's proposed on

427
00:20:00,720 --> 00:20:06,799
customers. So, what this table, again, a

428
00:20:04,240 --> 00:20:09,039
lot of numbers and I apologize, but for

429
00:20:06,799 --> 00:20:12,559
residential customers that use 4,000

430
00:20:09,039 --> 00:20:15,120
gallons or less, uh 67% of our

431
00:20:12,559 --> 00:20:17,919
residential customers stay within that

432
00:20:15,120 --> 00:20:21,200
4,000galon a month range. Their current

433
00:20:17,919 --> 00:20:23,840
bill is $80. That's both water and sewer

434
00:20:21,200 --> 00:20:26,799
for 4,000 gallons. The proposed change

435
00:20:23,840 --> 00:20:31,600
is going up to $82. That's a $2 a month

436
00:20:26,799 --> 00:20:34,159
increase uh or a 3% adjustment. uh 28%

437
00:20:31,600 --> 00:20:37,520
of our customers uh never get above

438
00:20:34,159 --> 00:20:40,080
10,000 gallons a month. Um and so for a

439
00:20:37,520 --> 00:20:43,039
customer using 6,000 gallons, their bill

440
00:20:40,080 --> 00:20:44,960
will go up $3 a month. Uh and for a

441
00:20:43,039 --> 00:20:49,600
customer using 10,000 gallons, their

442
00:20:44,960 --> 00:20:51,840
bill will go up $5 a month. So all in uh

443
00:20:49,600 --> 00:20:55,360
we saw that the average residential

444
00:20:51,840 --> 00:20:58,000
home, the tax is going to be about $4.88

445
00:20:55,360 --> 00:20:59,440
a month on the property tax rate. Uh for

446
00:20:58,000 --> 00:21:01,039
the utility rate, the average

447
00:20:59,440 --> 00:21:03,520
residential customer will see an

448
00:21:01,039 --> 00:21:07,840
increase of $2. So you're looking at

449
00:21:03,520 --> 00:21:09,840
about a $6 to7 a month impact for the

450
00:21:07,840 --> 00:21:11,840
average residential home in our

451
00:21:09,840 --> 00:21:14,080
community. And that supports the budget

452
00:21:11,840 --> 00:21:18,720
that was presented. On the commercial

453
00:21:14,080 --> 00:21:21,600
side, um 58% of the commercial accounts

454
00:21:18,720 --> 00:21:23,120
use 4,000 gallons or less. Um but then

455
00:21:21,600 --> 00:21:25,679
you've got restaurants and other

456
00:21:23,120 --> 00:21:28,320
commercial businesses that use more. And

457
00:21:25,679 --> 00:21:31,280
then finally uh on the industrial or

458
00:21:28,320 --> 00:21:33,600
institutional side uh they're using a

459
00:21:31,280 --> 00:21:37,280
lot larger volumes of water but it's

460
00:21:33,600 --> 00:21:38,799
basically a 3% increase across the board

461
00:21:37,280 --> 00:21:42,400
uh is what you're seeing for all of

462
00:21:38,799 --> 00:21:44,320
those classes of customers. And uh that

463
00:21:42,400 --> 00:21:45,679
concludes the presentation and I'll be

464
00:21:44,320 --> 00:21:47,520
happy to answer any questions that you

465
00:21:45,679 --> 00:21:52,120
have.

466
00:21:47,520 --> 00:21:52,120
» Any questions for Mr. Lisby?

467
00:22:03,520 --> 00:22:08,480
There being none, may I have a motion?

468
00:22:06,000 --> 00:22:10,240
» I move that we uh move forward on the

469
00:22:08,480 --> 00:22:14,559
first reading on the ordinance amending

470
00:22:10,240 --> 00:22:17,200
the two 24 uh

471
00:22:14,559 --> 00:22:19,520
24103 to reflect modified city of

472
00:22:17,200 --> 00:22:22,000
commerce water and wastewater rates for

473
00:22:19,520 --> 00:22:23,760
fiscal year 2026.

474
00:22:22,000 --> 00:22:25,039
We have a motion and a second. All in

475
00:22:23,760 --> 00:22:25,520
favor say I.

476
00:22:25,039 --> 00:22:27,840
» I.

477
00:22:25,520 --> 00:22:30,559
» Any oppose like sign?

478
00:22:27,840 --> 00:22:32,880
» Motion carries. Thank you. Item number

479
00:22:30,559 --> 00:22:35,039
three, also a first reading discussion

480
00:22:32,880 --> 00:22:38,480
of possible action on an ordinance

481
00:22:35,039 --> 00:22:40,480
amending ordinance 2024-10-02

482
00:22:38,480 --> 00:22:42,720
to reflect modified city of commerce

483
00:22:40,480 --> 00:22:44,240
solid waste fees. Miss Campbell,

484
00:22:42,720 --> 00:22:45,679
assistant city manager, financial

485
00:22:44,240 --> 00:22:48,240
services.

486
00:22:45,679 --> 00:22:50,559
» Good evening, mayor and council. So, um

487
00:22:48,240 --> 00:22:54,159
along with the water and wastewater

488
00:22:50,559 --> 00:22:57,440
rates, uh we usually bring solid wastes

489
00:22:54,159 --> 00:23:01,600
uh rates um for two readings before you

490
00:22:57,440 --> 00:23:04,960
guys. Um with the city sanitation

491
00:23:01,600 --> 00:23:07,679
contract being reviewed and um

492
00:23:04,960 --> 00:23:09,280
negotiated currently, I know you haven't

493
00:23:07,679 --> 00:23:12,320
seen that yet. I know it hasn't been a

494
00:23:09,280 --> 00:23:13,760
motion yet, but anticipation of that, we

495
00:23:12,320 --> 00:23:16,400
wanted to go ahead and get the solid

496
00:23:13,760 --> 00:23:18,799
waste fees in front of you that we are

497
00:23:16,400 --> 00:23:21,600
proposing to

498
00:23:18,799 --> 00:23:24,880
um bill our

499
00:23:21,600 --> 00:23:28,400
customers. The residential rate that

500
00:23:24,880 --> 00:23:31,760
everybody sees um is not changing.

501
00:23:28,400 --> 00:23:34,799
Um, uh, I believe city sanitation has

502
00:23:31,760 --> 00:23:37,600
requested a 2 and a.5% increase to their

503
00:23:34,799 --> 00:23:39,280
fees, um, and which you guys will

504
00:23:37,600 --> 00:23:42,000
negotiate and talk about during that

505
00:23:39,280 --> 00:23:43,840
contract. And so what I did was I took

506
00:23:42,000 --> 00:23:47,120
that 2.5%

507
00:23:43,840 --> 00:23:50,640
on their increase and just uh, pushed

508
00:23:47,120 --> 00:23:54,240
forward the typical 5% increase that we

509
00:23:50,640 --> 00:23:57,679
do with our um, customer rates. We try

510
00:23:54,240 --> 00:24:00,240
not to have a very large margin. Um, we

511
00:23:57,679 --> 00:24:04,159
try to keep it at the 5%.

512
00:24:00,240 --> 00:24:06,640
And we do the 5% mainly because when we

513
00:24:04,159 --> 00:24:09,120
do that large pickup, that fall and

514
00:24:06,640 --> 00:24:12,320
spring pickup, we don't bill that to the

515
00:24:09,120 --> 00:24:14,640
customers per se on their bill. So, this

516
00:24:12,320 --> 00:24:17,039
5% helps us kind of make sure that we're

517
00:24:14,640 --> 00:24:20,080
covering the cost of those large bulk

518
00:24:17,039 --> 00:24:23,200
pickups that we do. Um, and so the rates

519
00:24:20,080 --> 00:24:27,360
that you have in front of you are in

520
00:24:23,200 --> 00:24:30,559
theory 2.5% higher than they were um

521
00:24:27,360 --> 00:24:34,240
last year. Uh, with the residential rate

522
00:24:30,559 --> 00:24:35,919
of I believe it's $19

523
00:24:34,240 --> 00:24:37,760
and some change. I don't have it in

524
00:24:35,919 --> 00:24:39,840
front of me, I'm sorry. Uh, that will

525
00:24:37,760 --> 00:24:43,200
remain the same.

526
00:24:39,840 --> 00:24:48,720
Um and then the only other thing that is

527
00:24:43,200 --> 00:24:52,960
dependent is um large pickups that we

528
00:24:48,720 --> 00:24:56,080
have to have uh Republic come and do. Um

529
00:24:52,960 --> 00:24:58,480
we go based off their rates. It's a pass

530
00:24:56,080 --> 00:25:00,480
through rate from city sanitation to us.

531
00:24:58,480 --> 00:25:03,679
It's a pass through rate. Um, and

532
00:25:00,480 --> 00:25:07,279
typically that is only done on

533
00:25:03,679 --> 00:25:10,640
um internal

534
00:25:07,279 --> 00:25:13,760
um sludge pickup from the wastewater

535
00:25:10,640 --> 00:25:15,840
plant at this time. Um, and so that's

536
00:25:13,760 --> 00:25:20,080
the only one that's based on a pass

537
00:25:15,840 --> 00:25:23,520
through. Everything else is um 5% higher

538
00:25:20,080 --> 00:25:25,360
than city sanitation uh bills us and

539
00:25:23,520 --> 00:25:30,120
it's only at 2 and a half% from last

540
00:25:25,360 --> 00:25:30,120
year. if you have any questions.

541
00:25:30,400 --> 00:25:34,520
Any questions for Miss Campbell?

542
00:25:38,400 --> 00:25:43,200
» There being none, may I have a motion?

543
00:25:41,520 --> 00:25:46,960
» May I make a motion that we adopt

544
00:25:43,200 --> 00:25:50,240
ordinance amending ordinance 24102 to

545
00:25:46,960 --> 00:25:51,279
reflect modified city commerce sideways?

546
00:25:50,240 --> 00:25:53,200
» Second.

547
00:25:51,279 --> 00:25:54,480
» We have a motion and a second. All in

548
00:25:53,200 --> 00:25:56,960
favor say I.

549
00:25:54,480 --> 00:25:59,360
» I. Any oppose? Like sign. Motion

550
00:25:56,960 --> 00:26:01,520
carries. Thank you,

551
00:25:59,360 --> 00:26:03,520
council. We have no other items on our

552
00:26:01,520 --> 00:26:04,960
agenda for this evening. So, may I have

553
00:26:03,520 --> 00:26:05,520
a motion to adjurnn?

554
00:26:04,960 --> 00:26:06,159
» Move.

555
00:26:05,520 --> 00:26:08,320
» Second.

556
00:26:06,159 --> 00:26:13,080
» All in favor say I.

557
00:26:08,320 --> 00:26:13,080
» Post like sign. We are journ at 555.

558
00:26:16,400 --> 00:26:21,000
» Don't let the door hit you on the wind.

559
00:26:18,000 --> 00:26:21,000
» No.

560
00:26:22,720 --> 00:26:28,480
Let's see.

561
00:26:24,240 --> 00:26:28,480
» She goes, "Oops, I forgot.