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First things, first. It's 501, I'll call the meeting to order. Of the Anticity Commission Special Meeting Agenda Wednesday, August 12th, 2026.

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Call to order. Mayor Isba. Here. Mayor Pro Tem, Espital. Commissioner Falkenbach. Here. Commissioner Jones. Here. Commissioner Haney. Here. Commissioner Polk. Here. Commissioner Pierce. Here. Mayor, you have a quorum.

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Thank you.

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If we would all stand for the invocation followed by the Pledge of Allegiance, and our wonderful

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chief of police is going to lead us this evening.

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He's back.

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Heavenly Father, we thank you for this day and your many blessings.

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We just ask you to be with us as a decision to pass through this body.

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We ask you to continue to bless the city of Venice, keep our officers first responders and

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all of our military forces safe around the world.

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We ask these things in Christ name.

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I pledge allegiance to the flag of the United States of America and to the Republic for

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which it stands one nation under God, indivisible with liberty and justice for all.

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On under the Texas flag, I pledge allegiance to be Texas one state under God, one in indivisible.

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We'll

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move on to item B, items for discussion and individual consideration.

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B1, discussing consider resolution of the city commission of the city of NS Texas proposing

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a property tax rate for physical year 2027 declaring the date time and place of the public hearing

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and adoption of the property tax rate directing the publication of notice as required by law

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and providing an effective date.

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But you're

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the lucky one.

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I didn't like that.

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I got the lucky apple rejoicing.

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Well, we're glad that you did.

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So a good evening, mayor, commissioners.

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Tonight we will be reviewing the proposed property tax rate for a fiscal year in 2027.

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So, the purpose of our budget is to implement the strategic plan and its fire-strategic park

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board.

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Staff is prepared to propose budgets to cover the implementation, and the proposed state's

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rate will leave the taxi to pay for the budgeted goods and services.

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As innocent, avoid community funding is needed to fund police, fire, parks, streets, and

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fee administration.

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There's limited funding for additional staff and put them to keep up with increased demand

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for services.

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So the proposed tax copy tax rate is based on those meetings.

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As you, I don't know, the property tax rate has two components.

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The first is the maintenance and operations rate or the M&O rate, as you generally call.

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and it is used to support the general funds services, employee salaries, benefits, as well as

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health care for more than 600 employees and years of kids. It also covers infrastructure

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for tiers one, two, and three. Then you have the interest and thinking rate, the I and

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right there in college and it handles general service service.

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So the final certified park evaluation receipt in July, specifically July 24, 2020 reduced

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again, this year from what we had preliminary,

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we released on April 30th of 2026.

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The proposed budget is based on the $35,000,000, $460,000, $296,000, I'm trying to $296,000, $560,000.

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To address funding needs for police, expires, parks, streets, and general governments,

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It is proposed that the C adopts the voter approval rate of 0.668 to 380 per $100 value

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rate.

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This is the highest 10th rate that any may adopt without holding any action to seek voter

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approval.

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The no-nurevenue rate, which is 0.669182, is actually higher than the voter approval rate.

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Texas Truth in Taxation Long History Timeline, so if a property tax increase is required,

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and those dates are provided for you.

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So August 17th is the netline.

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It's the 78th day before the Uniform Election Day.

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Here, circle in green, you see the proposed 2026 tax rate calculations.

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So here you have your no new revenue rate, which is 0.669182.

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And then you have your Ebola approval rate calculation, which is 0.668238.

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and it shows you the vote components of those rates.

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Also next to that, we show you what we adopted in 2025,

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just for reference.

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The proposed property tax rate again is 0.668238.

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Staff is proposing adoption of the voter approval tax rate.

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On this slide, we are providing you just

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for digital data. So I'm from 2027, all the way to 2027, the property tax rate trillions.

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As you can see, this year of union 0.688 is really good lighting.

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This slide is going to give you digital data of property net taxable assistance valuation.

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So, all the way from 2016 to current, you see the evaluations part here.

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And this year is $3,400, sorry, $3,400, $416,200, $16,000, $6,500, $16,000.

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And here we have historical data for the property tax maybe, this year's property tax maybe

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maybe $24,566,566,912 dollars.

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So let's talk next step.

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The government should discuss and set a proposed tax rate.

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Then we will set a tax rate public hearing date.

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A notice of the tax rate will be published in local papers and

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promptly on the city website.

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We'll adopt a tax rate no more than 7 days after the public hearing date and then September 15th, 2026 is the last date the city can adopt a tax rate.

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I'll hear it.

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And now

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last year we had raised and now this year you were explaining that to me also can you explain it so the whole commission here?

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last year

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we

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moved a little bit of debt from a

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different funding to the property tax to

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stabilize the rate. This year we had a few things drop off. Initially we considered having

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another 20 million general obligation on the certificate of obligation, which would

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have increased our INS rate and probably resulted in a higher property tax rate.

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But with everything that we have learned over the last year is we are saving some of that

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for a proper capital improvement program that is multi-year. So we're not just rolling,

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you know, one year forward at a time, that is what we're currently working on.

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By virtue of the lowered interest in sinking fund rate because those two components,

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the maintenance and operation, the M&O and the interest in sinking fund,

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the INS rate, make up the total property tax for the city.

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Because the INS rate is lower, it lowered our overall tax rate.

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In addition to that, there are certain things that we cannot assess anymore, and you may

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remember that from the August 4 meeting.

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A new law came into play, and it essentially resulted in a $40 million removal out of

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the valuation, and it also has an impact.

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So we are, of course, as you know, capped at the no-new revenue rate, and in most cases,

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is that is the highest just underneath the voter approval rate, but because we dropped

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in our INS rate, we cannot move forward with a known revenue rate, therefore we have to

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take the voter approval rate, otherwise it would trigger the requirement for an election.

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And that was a lot of words, a lot of words, and I hope I answered your question.

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So if we had issued more in the certificate of obligation, would that have, how would that have affected this?

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It would have affected, because all of the payments, all of the debt payments that are anticipated for

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the next year are taken into account, which is what that INS rate is based on.

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So, it's not the totality of the debt, it's the payment that is anticipated to be made for a certificate of obligation for bond payment for any kind of interest or sinking fund that has to be paid.

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So, in this particular case, if we had taken out a $20 million certificate of obligation and the first year payment would have been higher than what is currently proposed,

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It would have increased the INS rate, which would have increased our overall property tax rate.

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So the 5 million was the most that we could take without affecting the overall tax rate?

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The 5 million we took, we actually increased the first year payment.

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So the subsequent, because the idea was, we are bridging this one gap to create a really solid capital improvement program with multi-year projects.

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that would then be funded through a certificate of obligation.

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So the first payment on the five year certificate of obligation is bigger than you would otherwise expect it because it's not even across the years that it will be paid back.

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It is bridging that gap, but yeah, we would have had to take out a bigger certificate of obligation or make a bigger payment this first year in order to stabilize it at the higher level.

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So the plan for 2022 and I assume is that we will take a larger certificate of obligation

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to further fund capital improvement projects.

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And that is what staff would love to propose to the City Commission at that time, but with

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a solid program of projects that is truly grounded in a very well thought out capital improvement

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program.

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Sandy and I have had a multiple conversations about that because that is something the city

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has not. We've had what we called capital improvement plans before, but truly having a solid

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five-year program with another five-year look out so we can plan. I know that we do this

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for the fire department. They have that already in place just by virtue of it takes a lot of money

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to replace a ladder truck. And we would like to expand that concept to the entirety of the city

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because we really want to become far more proactive

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in the planning of facility maintenance,

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in the planning of big equipment replacements,

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in truly the planning of continuing to grow

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and provide the best service that we can.

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But yeah, this gives us a little bit of extra time

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to work on it because setting up a process like that

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for the first time is not as easy.

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Isn't that as easy?

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I

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like the sound of that much better, anyway.

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that we have a solid plan for what we're doing with those.

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Thanks so much for tuning in.

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Thank you.

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Any further questions or discussions?

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Now, entertain a motion.

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I move we approve item B1.

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Okay, I have a motion by Commissioner Popman. Do I have a second? Do we need to read out the tax rate? Yeah, that needs to be. Here's the, here's the, just a minute. Okay.

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So I move, we approve item B1 with the tax rate, the proposed tax rate of 0.668238. Second. Okay, I have a motion by Commissioner Popman.

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in a second my commissioner Haney is there any further discussion then I will

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take a vote all in favour? Aye. Opposed? The ayes have it and the motion carries.

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If there's no further business we will adjourn at 517.

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Please.