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December

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1st, 2026. I'd like to call this meeting
to order and ask you please rise for the

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invocation and pledge of allegiance.
Father God, we thank you for this day.

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And Lord, as we are here gathering
together to do your work. I ask I just

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want to say thank you, Lord. We came
together as a community. We've prayed

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for you to allow us to avoid any
inclement weather or situations. And

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Lord, once again, you have seen us
through. continue to watch over any all

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of our constituents, all over our
surrounding communities, our neighbors

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and friends. Jesus name we pray. Amen.
>> Amen. I

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» pledge allegiance to the flag of the
United States of America and to the

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republic for which it stands, one nation
under God, indivisible, with liberty and

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justice for all.

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» All right, we will now move on to a
motion. Motion finding that the advanced

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posting and those requirements of
article 8.12000

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of the code of ordinances of the city of
Morris Texas have been met in relation

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to all minutes and pending ordinances
and resolutions on this agenda and that

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the reading of such items be confined to
the captions as are agreed upon by the

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ordinances and resolutions. Do I have a
motion?

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» Motion.
>> Can we have a motion in a second? Mr.

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Childs.
>> Hi.

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» Mr. Mortimer. Hi.
>> Mr. Chandler.

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» Hi.
>> Mr. Burch. Hi.

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» Miss Salter. Hi. Miss McKenna. I
>> K. Motion passes. On to item four,

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citizen comments. At this time, comments
will be taken from the audience on any

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subject matter, whether or not that item
is on the agenda. Our comments limited

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maximum of three minutes for each
speaker, and your comments are

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appreciated. A member of the audience
that desires to speak during the city

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council's consideration of any specific
agenda item is requested to notify city

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staff prior to the start of the meeting.
Right now, there are no names on my

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list, but is there anyone who would like
to approach council?

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Okay. If not, we will close that and
move to item five. Conduct a public

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hearing on the proposed fiscal year 2027
budget. Um, and so I must read the

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statement below. This budget will raise
less revenue from taxes than last year's

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budget by an amount of $171,525

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which is a 1.7%
of last year's budget. properties

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for new addition22,888.

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» So, it's a public hearing. We doesn't
I'm going to go over a few things. If

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there was a lot of public here, I'd go
over the presentation I already gave to

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y'all, but y'all have seen it, so we
won't do that. But, I was just gonna go

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over a couple of things before we open
it up for a public hearing. So just to

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remind you the budget is based on a
property tax rate of 866 which is less

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than last year.
>> Um so that means

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» that means
>> revenue is flat for property. Uh the

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lower tax rate also direct directly
affects the IDC's so that's a little

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less
sales tax was is projected to be flat

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because it's been flat this year. Now
granted, we do I do hope I'm going to be

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hope hopeful that the new businesses
that are opening up now around town um

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we should be seeing that sales tax start
to kick in soon. So that's

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» I do expect the sales tax to go up, but
I can't quantify that. So I could not

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» project it. I didn't have anything to
base it on. So we didn't project that.

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So should we get more? Yeah, we should.
I don't know that. So I couldn't put it

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anyway. Um, so therefore revenues aren't
increasing. So we had to keep expenses

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» the same. All the departments heads did
really good. They got what they needed.

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Um, very little request for capital
outlay. Nothing really major. Um, but

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still inflation hits. You know, fuel
went up, electricity goes up, supplies

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go up, even our software, you know, it
all goes up. So, they've tried to trim

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in other areas to accommodate for those
types of inflationary items. Um, let's

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see. This budget does not include any
cola

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to keep the expenses down. Um, city
still in negotiations with police and

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fire. Don't forget that.
>> That's not in here because we don't

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know. We don't know what it'll be. So,
um, we do have a contingency fund as

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always built in the budget. So that is
there for these types of things but we

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did not put in the salaries yet. Um so
staff has presented the balanced budget

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means
>> expenditures should not exceed

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» resources right so revenues and
expenditures should be the same and if

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they're not which our expenditures are a
little more than our revenues so that

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means we're going to take a little bit
from revenue uh reserves

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» so that's like
41,165

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and in the general fund in $430,000 out
of the water and sewer fund.

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» So there's that. Um
staff listen to

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» all year to the council
>> uh to all the comments that were made at

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the the last year's public hearings. All
all year we try to do what you guys

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want. What what we hear
>> because we don't you don't always say it

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directly.
>> We hear that you wanted to lower taxes

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» which we proposed to do
>> and you wanted to lower expenses which

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we did do.
>> So we tried to do what was asked of us

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and so that's where we're at with this
budget.

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» Um the only thing I did want to maybe
explain I think we still have some

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confusion on reserves.
If if you'll indulge me a minute, I'll

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explain it a little. Um,
>> reserves. Some cities call it reserves.

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Some cities call it fund balance. Some
cities call it cash

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» in a the
>> Gazsby, which is our governmental

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accounting standards board. They give us
rules and regulations and pronouncements

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for my financial statements, for the
audit, that sort of thing. They don't

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govern the budget. So the budget is what
it is. It's a budget. So that

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terminology doesn't always flow down to
to the budget. So that's why cities can

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do whatever they want. They need to
follow their charter. They need to

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follow the local government code. But we
choose to use the word reserve.

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» You know, it could be fund balance. But
I I actually looked up a handful of

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cities and I have their print out right
here that they do it all differently.

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Some just beginning balance, ending
balance. That's it. That's all you get.

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Some don't even show that much. Some
show what we show. They'll show the

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operating reserve. Some show uh
beginning balance, ending balance,

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excess.
>> They don't say what they're going to do

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with it. They don't give you any other
>> explanation. So,

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we we are trying to give some detail
with our reserves, fund balance, however

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you want to call it
>> to help you. So really the fund balance

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is
>> assets minus liability. So in the

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business world it's equity.
>> So you know that you know that you know

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that. So that's what it is. It's really
what you could spend.

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» But we reserve
>> save savings account however you want to

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call it the operating reserve. Like we
want to make sure we have x amount of

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dollars set aside for disaster.
Could have [clears throat] been today.

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» Could have been today.
>> Could have been. Don't know. But uh so

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you know by policy it's 30%. City
manager. Yes. Amen.

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» Uh city manager likes 50%. So I'm just
trying to show you that if you look at

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our um financial statement, our audit
book, you'll see all those different

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terminologies for the that is prescribed
by the Gazsby for reserves. That's when

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we have to be specific. So governmental
funds um are the general fund, debt

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service, all of our special revenue
funds which are grant funds and such.

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They call it literally fund balance.
>> And it has a non-spendable, a

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restricted, assigned, committed, and
unassigned. And we have to put that

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amounts into those categories. Mostly
it's special revenue. The door is

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kicking in and out. um grant funds that
that is literally restricted grant funds

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we spend them we we put them aside we
don't spend those funds on anything

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except for what the grant tells us we
can like our CDBG grant or our egrants

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for like police equipment or whatnot so
those are restricted the other funds say

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like in our budget and we call it
>> uh capital outlay or whatever those

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Those are more assigned.
>> You could assign whatever you want. You

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could assign it to say,
>> you know,

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» unassigned. You don't have to assign it
at all.

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» If you, some of y'all have been here
long enough, if you remember before Mike

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got here, it used to just say operating
reserve and unassigned.

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» He likes to earmark it and try to
uh give it a use so that you can plan

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for the future. So, we call it capital
outlay. And then we try to the list or

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whatever, I do have to have a line for
debt service because of my debt service

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fund. So, those types of things, but in
the

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» when you when you were throwing around
things like restricted and other types

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of re uh reserves, that's those
terminologies are important in the

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financial statements.
>> It's different in the budget.

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» I don't know if I'm even making sense.
>> Okay. So, um, I just wanted to

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maybe clarify that a little bit because
I know we've had some confusion on that.

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Um, so what we what we set aside in the
operating, can we spend that?

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» Yes, you can. You can, we can.
>> We bring it to you and we ask you and

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then we go, yes, we're going to take it
out of reserves. We should not go below

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our 30% by policy, but
>> but

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» we could we could spend it down. Now,
you're supposed to only spend reserves

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down on capital outlay, one use items,
one one time use things like equipment

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or you know one things you're not
regular operating, not payroll, not

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electricity, all those things. So um
that's why the terminology is not

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» uh consistent across all the city's
budgets. They all do something different

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because it is that's not where it's
important. The important part is in the

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financial and that's when the auditors
are checking to see are you really

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restricting those funds are you spending
them on all the things. So we have to

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categorize that they check us and all
that.

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» So um
>> I don't know does that help on that?

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» Thank you. Okay. Yes.
>> So thank you.

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» Sure. So um that we just talked about
>> uh general fund just real quickly just

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water and sewer. Moving on. No rate
increase yet. As you know, we have a TCQ

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letter of enforcement. And as those
projects come in, we're going to go

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ahead, y'all agree to fund some of those
out of the water and sewer reserves.

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While we are wrapping our heads around
how much money do we need to borrow? And

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once we do, then we will decide on the
amount to borrow, the bond amount, the

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bond payment, and then we may have to
have a rate increase at that time. We're

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going to wait and see. We're going to
wait and see what happens. Now, the rate

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will go up slightly, six and a half%
because of the sanitation. Our rate is

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tied to the uh waste management
contract. We're in year four of five.

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So, we have one more year after this one
at six and a half%. with waste

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management. So um and also capital
improvement was very minimal minimal in

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water and sewer and any excess fund
balance reserve whatever you would like

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to call it will be used right now water
and sewer to fund these TCQ projects

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while we're getting everything ready for
um bond issue. So um that's my comments

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on the budget.
Um, if we had citizens here, we were

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gonna go through the slides that Mike
had, but we don't need to do that. So,

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does anybody have any questions?
>> Happy to help.

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» Okay. I thought we were still
>> I haven't public hearing, but that means

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we can all talk. It's public.
>> Okay. Yeah. You know, it's interesting

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that you said that. I had that
conversation with Mike and I wrote those

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things under GB4.
I looked them up and put a little time.

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Part of the reason that I I did that was
the fact in in the letter we had that

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discussion about incumbrance last time
and team

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» well
kind of ear what I kind of got out

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» and I said the reason I looked at this
was the fact that in the budget itself

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we we basically dropped
>> capital outlay which would cover any

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type of some some of the infrastru
that we need to do which I believe

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» I'm not sure if all of us but almost all
of us said something about

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infrastructure in our workshop we cut it
from 1.8 down to 500,000.

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» And then what happened? It came up into
the shows up for basically a million

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00:14:14,800 --> 00:14:25,040
dollars for for some road work and then
also some more down in it with some

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other items such as fire trucks and
things of this nature. concern.

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» My concern with that is is the fact that
dealing with the public,

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their concerns are also some of our
infrastructure. I realize that we're in

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a we're no different than any other
cities in this area or around the

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country right now. We've got some
crumbling infrastructure that needs to

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be worked on.
But when I see that as that number goes

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down that some of these numbers are not
>> it's not that we can't

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» it's not that we can't do it, but I want
to make it a little

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for us to make that decision. In other
words,

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» if it's basically falls under the
assigned and or committed committed

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requires you to actually have a
resolution or something of that nature,

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right, to
>> you impose that legal restriction on

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yourself. Correct.
>> Assign does not require but it does

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require going back to the highest level.
>> But you we still would bring that back

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to you. So that's why when we did the
budget and there's

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» additional reserves fund balance left,
>> we don't decide the projects. Y'all do.

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So we just suggested some, you know,
roads, you know, just we just made a

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suggestion of fire truck. They need a
new fire truck, right? So, we made those

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00:15:46,000 --> 00:15:55,440
suggestions, but they will bring that to
you a as it as it comes up or y'all can

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request to go ahead and start that road
project or whatever. We just we don't

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know right at this point when we make
this budget. So, we just made

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suggestions.
>> I just wanted to make sure that we had

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that mechanism in place because because
that was one of my concerns is the fact

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that we took it we took so so much out
of the budget and everybody For the most

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part, I'm not going to say everybody
because I can't say want.

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00:16:17,600 --> 00:16:21,920
» Yes,
>> we need to have we're going to have to

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have those. I want to make sure I want
to make sure that that money comes from

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reserves is going to do it because it's
not in the

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» it's not in the budget, but it is um
assigned

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» as a project then y'all can definitely
>> assign it to infrastructure for

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whichever project. Correct.
>> Thank you.

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» So, I have one. So, thank you for
clarifying that. I had also wanted to

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So, I I know we have on our contingency
fund. Um, I had asked y'all when I met

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with you and Mike and sat down and
talked about the budget several times.

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So, for right now, while we are still in
deliberation or whatever y'all call

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00:17:00,880 --> 00:17:10,559
that, negotiation, sorry, I don't know
why I said deliberation. I at least want

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to seek taking at least a 1% for the
city staff from the contingency. I think

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00:17:13,120 --> 00:17:19,919
that you say it was about 200,000 for 1%
and I think we have about five. So I

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don't want because I had wanted to do 2%
but I don't want to drain that without

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00:17:21,360 --> 00:17:28,960
even knowing what could possibly come
up. But at least for now I want to put

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it on record that for us to have
something to be able to give to them

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this year. But it would have to come
from the contingency

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» at this point.
>> If you if you want to increase an

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expenditure in this budget,
>> we need to take it from somewhere else.

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» So I want to take it from the
contingencies.

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00:17:46,240 --> 00:17:53,679
» I want and I'm proposing that it has to
be passed.

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» Yes, you do have to say that.
>> I'm not

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» 881. So it's about 113 for general
government.

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So then I'm going go ahead and say 2%
>> 225.

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» Okay.
>> And then you were right the container

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still 500,000.
>> Okay. Thank you.

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» That's all
>> that's just that's all I have.

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» And we did have
>> remember at the very last minute uh Blue

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Cross lowered our HMO rate so we have
about $100,000 in savings.

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» That's why I wanted to make sure
>> shown in the budget because I didn't

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like we didn't get those numbers to
>> bring I wanted to bring it up that it's

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not from reserves. It's not from
anybody's

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» account. It's from contingency.
>> That's just my

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» So, do we have
>> do we have to open up to public hearing?

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» Yes. Just as officially let them say.
>> Okay.

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» So, is there anyone that would like to
say anything from the public?

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00:18:50,320 --> 00:18:54,320
» Okay.
>> Then you can close it.

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» If not, we'll close that one and move to
item 6A. Conduct a public hearing on the

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proposed tax rate.
for fiscal year 2027. Announce the

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following date, time, and location.
Second reading and final vote on tax

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decrease September 8, 2026 at 9:00 a.m.
in the city council chambers, Orange

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Public Library. Miss Zto,
>> um once again, I'm not going to put up

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the presentation I probably hit y'all
with several times already this year,

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but we did propose 866, which is below
not only last year, but also below the

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no new revenue rate. So we effectively
have a tax decrease and we have a tax

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decrease from last year because those
aren't always the same.

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» So that's at your pleasure.
>> Okay.

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00:19:42,160 --> 00:19:49,039
» All right. So this is a public hearing
as well. Is there anyone from the public

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» or council?
>> Okay.

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00:19:50,080 --> 00:19:57,360
» If not, we will close that. Move to
ordinances. 7A. Consider an ordinance

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adopting a budget for the fiscal year
beginning October 1st, 2026 and ending

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on September 30th, 2027 in accordance
with the charter of the city of Orange,

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Texas. Miss
>> with that prepared the budget the the

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ordinance for budgets come first, right?
So for the budget as proposed.

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» So
>> um what does he have to say to change

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that? And then but the next I'll have to
change the name.

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So again,
>> so again, yes, sir. You'd have to say u

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proposed to to pass the budget. You
know, I'm sorry. Vote to pass the budget

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as proposed with additional.
>> So you have a 2% cola taken from the

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contingency. Obviously have to have a
second and

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» you have it. You have the sheet so I
don't say it wrong or I can just say it

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like that.
>> I didn't I didn't I didn't make a sheet.

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» Okay. I'm sorry.
>> Well, is there are there any is there

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any discussion before asked for a
motion.

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» Do we have a
>> a motion? So, the motion will be I'll

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make the motion. The motion is to
>> pass and adopt I mean to adopt the

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budget along with the cola of 2% for
city of Orange

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» general government
>> general government staff. Okay. So,

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that's a motion. Then we have a motion
and a second. It requires a record vote.

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So, Mr. Childs

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Mr. Mortimer

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» struggling struggling with the company.
>> I'm gonna be quite honest.

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» Okay.
>> Reason I'm struggling with the cola is

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the fact that last year it was presented
to us that it was a 4% cola given along

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with the additional two steps even
though I realized we didn't fund one of

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them. And city manager said, "I want to
do it now because we don't know what

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we're going to be able to do in the
future." And the future has come. Future

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00:21:58,880 --> 00:22:08,159
ran into situations with insurance tax
revenue businesses and so it's happen.

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And so it's just a struggle. Remember
this whether it's at 1% 2% 3 whatever it

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may be that's an ongoing thing from this
point in perivity as long as we're safe

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because it continues as part of it.
right now.

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00:22:24,240 --> 00:22:29,440
» Okay.
>> So, may may I ask you if there's a no

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00:22:27,360 --> 00:22:34,000
because you're saying it's the colog.
Are you saying that they I don't I'm

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00:22:31,280 --> 00:22:37,039
trying to understand why not help them
if you felt like they didn't get what

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they needed last year.
>> No, they got they got that in.

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» Oh, okay. So, okay. I'm sorry.
>> Okay. I'm sorry. I just I was just like,

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wait, I didn't know. I'm sorry. No, sir.
No problem. And I'm not trying to judge

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00:22:47,280 --> 00:22:50,880
you. Please don't think that. I just I
want to make sure it's clear. Mr.

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00:22:50,240 --> 00:22:52,960
Chandler,
>> no.

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00:22:51,600 --> 00:22:56,480
» Okay. Mr. Bur,
>> hi.

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00:22:53,600 --> 00:23:00,799
» Hey, Mr. I mean, Miss Salter,
>> um

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I'm with them on that. Uh we made a
decision last year. Okay.

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00:23:03,120 --> 00:23:08,559
» So, it's a no for me.
>> Okay. Miss McKenna.

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00:23:06,640 --> 00:23:11,200
» Okay.
>> So, so

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00:23:10,240 --> 00:23:16,400
» you need to
>> So, I need a vote, too.

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00:23:13,200 --> 00:23:21,880
» Okay. And I say yes.
is that that counts for our ordinance,

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00:23:18,159 --> 00:23:21,880
right? That vote

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00:23:22,000 --> 00:23:27,679
» that that vote is for the ordinance,
correct?

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00:23:25,520 --> 00:23:32,720
» Okay.
>> The change my ordinance.

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00:23:30,960 --> 00:23:35,760
» Okay. Just making sure.
>> Okay.

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00:23:34,000 --> 00:23:40,880
» Okay. Just making sure.
>> Just want to make sure it was proper.

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00:23:39,520 --> 00:23:44,640
» Okay.
>> So that All right. So that motion

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00:23:42,400 --> 00:23:48,159
passes. We will move to item 7B.
Consider an ordinance making a tax levy

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00:23:46,880 --> 00:23:52,799
and fixing the maintenance and
operations tax rate, debt service tax

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00:23:50,480 --> 00:23:56,880
rate, and total tax rate for the city of
Orange, Texas for the fiscal year

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00:23:54,159 --> 00:24:02,159
beginning October 1st, 2026 and ending
September 30th, 2027 upon all taxable

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00:24:00,000 --> 00:24:06,720
property in the city of Orange, Texas on
January 1st, 2026 according to the laws

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00:24:04,799 --> 00:24:11,120
of Texas, the charter provisions and the
ordinances of the city of Orange, Texas,

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00:24:08,720 --> 00:24:15,360
and providing that the set taxes levied
shall be collected. And if anybody will

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00:24:14,000 --> 00:24:19,039
make the motion, you'll have to read the
following motion. Miss,

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00:24:16,640 --> 00:24:23,679
» so this is to propose the tax rate at
866, which I already said was lower than

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00:24:21,120 --> 00:24:30,000
last year. And this is the cap. You
cannot go above it even if you want to.

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00:24:25,440 --> 00:24:32,799
Like you're already set at 866. So I'm
leave it over to you,

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00:24:31,360 --> 00:24:38,000
» mayor. I'll read the motion for us.
>> Okay. Thank you, Mr. Childs.

319
00:24:35,279 --> 00:24:42,640
» Uh I make the motion. I move that the
property tax rate be decreased by the

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00:24:40,159 --> 00:24:45,640
adoption of a tax rate of
0.86600

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00:24:46,240 --> 00:24:53,279
per 100
>> dollars which is effectively a 06

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00:24:50,720 --> 00:24:55,919
decrease in tax rate.
>> Thank you Mr. Childs. Do we have a

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00:24:54,799 --> 00:24:59,360
second? Second.
>> Okay, we have a second. So we will go

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00:24:57,520 --> 00:25:01,440
through again. Mr. Childs,
>> Mr. Mortimer. Hi.

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00:25:00,400 --> 00:25:06,880
» Mr. Chandler. Hi.
>> Mr. M. Mr. Bur. Hi. Miss Salter. Miss

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00:25:04,320 --> 00:25:13,200
McKenna. Hi. And I say I as well. Okay.
That motion passes. Do I have a motion

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00:25:08,480 --> 00:25:13,200
to adjurnn? Meetings adjourned.