[0:00] December
[0:03] 1st, 2026. I'd like to call this meeting
to order and ask you please rise for the
[0:07] invocation and pledge of allegiance.
Father God, we thank you for this day.
[0:13] And Lord, as we are here gathering
together to do your work. I ask I just
[0:17] want to say thank you, Lord. We came
together as a community. We've prayed
[0:20] for you to allow us to avoid any
inclement weather or situations. And
[0:25] Lord, once again, you have seen us
through. continue to watch over any all
[0:29] of our constituents, all over our
surrounding communities, our neighbors
[0:32] and friends. Jesus name we pray. Amen.
>> Amen. I
[0:36] » pledge allegiance to the flag of the
United States of America and to the
[0:41] republic for which it stands, one nation
under God, indivisible, with liberty and
[0:47] justice for all.
[0:53] » All right, we will now move on to a
motion. Motion finding that the advanced
[0:56] posting and those requirements of
article 8.12000
[1:01] of the code of ordinances of the city of
Morris Texas have been met in relation
[1:05] to all minutes and pending ordinances
and resolutions on this agenda and that
[1:09] the reading of such items be confined to
the captions as are agreed upon by the
[1:13] ordinances and resolutions. Do I have a
motion?
[1:16] » Motion.
>> Can we have a motion in a second? Mr.
[1:19] Childs.
>> Hi.
[1:20] » Mr. Mortimer. Hi.
>> Mr. Chandler.
[1:22] » Hi.
>> Mr. Burch. Hi.
[1:23] » Miss Salter. Hi. Miss McKenna. I
>> K. Motion passes. On to item four,
[1:27] citizen comments. At this time, comments
will be taken from the audience on any
[1:31] subject matter, whether or not that item
is on the agenda. Our comments limited
[1:35] maximum of three minutes for each
speaker, and your comments are
[1:38] appreciated. A member of the audience
that desires to speak during the city
[1:42] council's consideration of any specific
agenda item is requested to notify city
[1:46] staff prior to the start of the meeting.
Right now, there are no names on my
[1:50] list, but is there anyone who would like
to approach council?
[1:55] Okay. If not, we will close that and
move to item five. Conduct a public
[1:59] hearing on the proposed fiscal year 2027
budget. Um, and so I must read the
[2:04] statement below. This budget will raise
less revenue from taxes than last year's
[2:09] budget by an amount of $171,525
[2:14] which is a 1.7%
of last year's budget. properties
[2:20] for new addition22,888.
[2:27] » So, it's a public hearing. We doesn't
I'm going to go over a few things. If
[2:33] there was a lot of public here, I'd go
over the presentation I already gave to
[2:37] y'all, but y'all have seen it, so we
won't do that. But, I was just gonna go
[2:42] over a couple of things before we open
it up for a public hearing. So just to
[2:48] remind you the budget is based on a
property tax rate of 866 which is less
[2:54] than last year.
>> Um so that means
[2:57] » that means
>> revenue is flat for property. Uh the
[3:01] lower tax rate also direct directly
affects the IDC's so that's a little
[3:05] less
sales tax was is projected to be flat
[3:10] because it's been flat this year. Now
granted, we do I do hope I'm going to be
[3:16] hope hopeful that the new businesses
that are opening up now around town um
[3:22] we should be seeing that sales tax start
to kick in soon. So that's
[3:27] » I do expect the sales tax to go up, but
I can't quantify that. So I could not
[3:32] » project it. I didn't have anything to
base it on. So we didn't project that.
[3:35] So should we get more? Yeah, we should.
I don't know that. So I couldn't put it
[3:38] anyway. Um, so therefore revenues aren't
increasing. So we had to keep expenses
[3:46] » the same. All the departments heads did
really good. They got what they needed.
[3:52] Um, very little request for capital
outlay. Nothing really major. Um, but
[3:58] still inflation hits. You know, fuel
went up, electricity goes up, supplies
[4:03] go up, even our software, you know, it
all goes up. So, they've tried to trim
[4:08] in other areas to accommodate for those
types of inflationary items. Um, let's
[4:14] see. This budget does not include any
cola
[4:19] to keep the expenses down. Um, city
still in negotiations with police and
[4:24] fire. Don't forget that.
>> That's not in here because we don't
[4:28] know. We don't know what it'll be. So,
um, we do have a contingency fund as
[4:33] always built in the budget. So that is
there for these types of things but we
[4:39] did not put in the salaries yet. Um so
staff has presented the balanced budget
[4:45] means
>> expenditures should not exceed
[4:50] » resources right so revenues and
expenditures should be the same and if
[4:55] they're not which our expenditures are a
little more than our revenues so that
[5:00] means we're going to take a little bit
from revenue uh reserves
[5:03] » so that's like
41,165
[5:08] and in the general fund in $430,000 out
of the water and sewer fund.
[5:13] » So there's that. Um
staff listen to
[5:19] » all year to the council
>> uh to all the comments that were made at
[5:24] the the last year's public hearings. All
all year we try to do what you guys
[5:30] want. What what we hear
>> because we don't you don't always say it
[5:36] directly.
>> We hear that you wanted to lower taxes
[5:40] » which we proposed to do
>> and you wanted to lower expenses which
[5:45] we did do.
>> So we tried to do what was asked of us
[5:50] and so that's where we're at with this
budget.
[5:53] » Um the only thing I did want to maybe
explain I think we still have some
[5:58] confusion on reserves.
If if you'll indulge me a minute, I'll
[6:04] explain it a little. Um,
>> reserves. Some cities call it reserves.
[6:09] Some cities call it fund balance. Some
cities call it cash
[6:14] » in a the
>> Gazsby, which is our governmental
[6:20] accounting standards board. They give us
rules and regulations and pronouncements
[6:24] for my financial statements, for the
audit, that sort of thing. They don't
[6:28] govern the budget. So the budget is what
it is. It's a budget. So that
[6:34] terminology doesn't always flow down to
to the budget. So that's why cities can
[6:40] do whatever they want. They need to
follow their charter. They need to
[6:42] follow the local government code. But we
choose to use the word reserve.
[6:48] » You know, it could be fund balance. But
I I actually looked up a handful of
[6:53] cities and I have their print out right
here that they do it all differently.
[6:57] Some just beginning balance, ending
balance. That's it. That's all you get.
[7:02] Some don't even show that much. Some
show what we show. They'll show the
[7:06] operating reserve. Some show uh
beginning balance, ending balance,
[7:10] excess.
>> They don't say what they're going to do
[7:13] with it. They don't give you any other
>> explanation. So,
[7:18] we we are trying to give some detail
with our reserves, fund balance, however
[7:25] you want to call it
>> to help you. So really the fund balance
[7:30] is
>> assets minus liability. So in the
[7:34] business world it's equity.
>> So you know that you know that you know
[7:38] that. So that's what it is. It's really
what you could spend.
[7:43] » But we reserve
>> save savings account however you want to
[7:48] call it the operating reserve. Like we
want to make sure we have x amount of
[7:54] dollars set aside for disaster.
Could have [clears throat] been today.
[7:58] » Could have been today.
>> Could have been. Don't know. But uh so
[8:01] you know by policy it's 30%. City
manager. Yes. Amen.
[8:06] » Uh city manager likes 50%. So I'm just
trying to show you that if you look at
[8:12] our um financial statement, our audit
book, you'll see all those different
[8:17] terminologies for the that is prescribed
by the Gazsby for reserves. That's when
[8:23] we have to be specific. So governmental
funds um are the general fund, debt
[8:30] service, all of our special revenue
funds which are grant funds and such.
[8:34] They call it literally fund balance.
>> And it has a non-spendable, a
[8:38] restricted, assigned, committed, and
unassigned. And we have to put that
[8:45] amounts into those categories. Mostly
it's special revenue. The door is
[8:50] kicking in and out. um grant funds that
that is literally restricted grant funds
[8:58] we spend them we we put them aside we
don't spend those funds on anything
[9:01] except for what the grant tells us we
can like our CDBG grant or our egrants
[9:08] for like police equipment or whatnot so
those are restricted the other funds say
[9:15] like in our budget and we call it
>> uh capital outlay or whatever those
[9:21] Those are more assigned.
>> You could assign whatever you want. You
[9:25] could assign it to say,
>> you know,
[9:28] » unassigned. You don't have to assign it
at all.
[9:31] » If you, some of y'all have been here
long enough, if you remember before Mike
[9:36] got here, it used to just say operating
reserve and unassigned.
[9:40] » He likes to earmark it and try to
uh give it a use so that you can plan
[9:47] for the future. So, we call it capital
outlay. And then we try to the list or
[9:52] whatever, I do have to have a line for
debt service because of my debt service
[9:55] fund. So, those types of things, but in
the
[10:00] » when you when you were throwing around
things like restricted and other types
[10:06] of re uh reserves, that's those
terminologies are important in the
[10:11] financial statements.
>> It's different in the budget.
[10:15] » I don't know if I'm even making sense.
>> Okay. So, um, I just wanted to
[10:23] maybe clarify that a little bit because
I know we've had some confusion on that.
[10:27] Um, so what we what we set aside in the
operating, can we spend that?
[10:33] » Yes, you can. You can, we can.
>> We bring it to you and we ask you and
[10:39] then we go, yes, we're going to take it
out of reserves. We should not go below
[10:42] our 30% by policy, but
>> but
[10:46] » we could we could spend it down. Now,
you're supposed to only spend reserves
[10:50] down on capital outlay, one use items,
one one time use things like equipment
[10:55] or you know one things you're not
regular operating, not payroll, not
[11:01] electricity, all those things. So um
that's why the terminology is not
[11:10] » uh consistent across all the city's
budgets. They all do something different
[11:14] because it is that's not where it's
important. The important part is in the
[11:18] financial and that's when the auditors
are checking to see are you really
[11:22] restricting those funds are you spending
them on all the things. So we have to
[11:26] categorize that they check us and all
that.
[11:29] » So um
>> I don't know does that help on that?
[11:35] » Thank you. Okay. Yes.
>> So thank you.
[11:37] » Sure. So um that we just talked about
>> uh general fund just real quickly just
[11:44] water and sewer. Moving on. No rate
increase yet. As you know, we have a TCQ
[11:51] letter of enforcement. And as those
projects come in, we're going to go
[11:56] ahead, y'all agree to fund some of those
out of the water and sewer reserves.
[12:01] While we are wrapping our heads around
how much money do we need to borrow? And
[12:06] once we do, then we will decide on the
amount to borrow, the bond amount, the
[12:11] bond payment, and then we may have to
have a rate increase at that time. We're
[12:15] going to wait and see. We're going to
wait and see what happens. Now, the rate
[12:19] will go up slightly, six and a half%
because of the sanitation. Our rate is
[12:23] tied to the uh waste management
contract. We're in year four of five.
[12:28] So, we have one more year after this one
at six and a half%. with waste
[12:32] management. So um and also capital
improvement was very minimal minimal in
[12:37] water and sewer and any excess fund
balance reserve whatever you would like
[12:43] to call it will be used right now water
and sewer to fund these TCQ projects
[12:49] while we're getting everything ready for
um bond issue. So um that's my comments
[12:56] on the budget.
Um, if we had citizens here, we were
[13:01] gonna go through the slides that Mike
had, but we don't need to do that. So,
[13:04] does anybody have any questions?
>> Happy to help.
[13:10] » Okay. I thought we were still
>> I haven't public hearing, but that means
[13:13] we can all talk. It's public.
>> Okay. Yeah. You know, it's interesting
[13:17] that you said that. I had that
conversation with Mike and I wrote those
[13:20] things under GB4.
I looked them up and put a little time.
[13:26] Part of the reason that I I did that was
the fact in in the letter we had that
[13:31] discussion about incumbrance last time
and team
[13:35] » well
kind of ear what I kind of got out
[13:41] » and I said the reason I looked at this
was the fact that in the budget itself
[13:47] we we basically dropped
>> capital outlay which would cover any
[13:52] type of some some of the infrastru
that we need to do which I believe
[13:58] » I'm not sure if all of us but almost all
of us said something about
[14:01] infrastructure in our workshop we cut it
from 1.8 down to 500,000.
[14:08] » And then what happened? It came up into
the shows up for basically a million
[14:14] dollars for for some road work and then
also some more down in it with some
[14:23] other items such as fire trucks and
things of this nature. concern.
[14:26] » My concern with that is is the fact that
dealing with the public,
[14:32] their concerns are also some of our
infrastructure. I realize that we're in
[14:36] a we're no different than any other
cities in this area or around the
[14:40] country right now. We've got some
crumbling infrastructure that needs to
[14:43] be worked on.
But when I see that as that number goes
[14:48] down that some of these numbers are not
>> it's not that we can't
[14:52] » it's not that we can't do it, but I want
to make it a little
[14:55] for us to make that decision. In other
words,
[15:00] » if it's basically falls under the
assigned and or committed committed
[15:05] requires you to actually have a
resolution or something of that nature,
[15:10] right, to
>> you impose that legal restriction on
[15:14] yourself. Correct.
>> Assign does not require but it does
[15:19] require going back to the highest level.
>> But you we still would bring that back
[15:24] to you. So that's why when we did the
budget and there's
[15:28] » additional reserves fund balance left,
>> we don't decide the projects. Y'all do.
[15:34] So we just suggested some, you know,
roads, you know, just we just made a
[15:40] suggestion of fire truck. They need a
new fire truck, right? So, we made those
[15:46] suggestions, but they will bring that to
you a as it as it comes up or y'all can
[15:52] request to go ahead and start that road
project or whatever. We just we don't
[15:58] know right at this point when we make
this budget. So, we just made
[16:01] suggestions.
>> I just wanted to make sure that we had
[16:05] that mechanism in place because because
that was one of my concerns is the fact
[16:10] that we took it we took so so much out
of the budget and everybody For the most
[16:15] part, I'm not going to say everybody
because I can't say want.
[16:17] » Yes,
>> we need to have we're going to have to
[16:20] have those. I want to make sure I want
to make sure that that money comes from
[16:24] reserves is going to do it because it's
not in the
[16:26] » it's not in the budget, but it is um
assigned
[16:30] » as a project then y'all can definitely
>> assign it to infrastructure for
[16:36] whichever project. Correct.
>> Thank you.
[16:41] » So, I have one. So, thank you for
clarifying that. I had also wanted to
[16:45] So, I I know we have on our contingency
fund. Um, I had asked y'all when I met
[16:51] with you and Mike and sat down and
talked about the budget several times.
[16:55] So, for right now, while we are still in
deliberation or whatever y'all call
[17:00] that, negotiation, sorry, I don't know
why I said deliberation. I at least want
[17:05] to seek taking at least a 1% for the
city staff from the contingency. I think
[17:13] that you say it was about 200,000 for 1%
and I think we have about five. So I
[17:18] don't want because I had wanted to do 2%
but I don't want to drain that without
[17:21] even knowing what could possibly come
up. But at least for now I want to put
[17:25] it on record that for us to have
something to be able to give to them
[17:30] this year. But it would have to come
from the contingency
[17:34] » at this point.
>> If you if you want to increase an
[17:38] expenditure in this budget,
>> we need to take it from somewhere else.
[17:42] » So I want to take it from the
contingencies.
[17:46] » I want and I'm proposing that it has to
be passed.
[17:50] » Yes, you do have to say that.
>> I'm not
[17:55] » 881. So it's about 113 for general
government.
[18:00] So then I'm going go ahead and say 2%
>> 225.
[18:04] » Okay.
>> And then you were right the container
[18:05] still 500,000.
>> Okay. Thank you.
[18:09] » That's all
>> that's just that's all I have.
[18:10] » And we did have
>> remember at the very last minute uh Blue
[18:15] Cross lowered our HMO rate so we have
about $100,000 in savings.
[18:20] » That's why I wanted to make sure
>> shown in the budget because I didn't
[18:23] like we didn't get those numbers to
>> bring I wanted to bring it up that it's
[18:28] not from reserves. It's not from
anybody's
[18:30] » account. It's from contingency.
>> That's just my
[18:34] » So, do we have
>> do we have to open up to public hearing?
[18:40] » Yes. Just as officially let them say.
>> Okay.
[18:45] » So, is there anyone that would like to
say anything from the public?
[18:50] » Okay.
>> Then you can close it.
[18:52] » If not, we'll close that one and move to
item 6A. Conduct a public hearing on the
[18:56] proposed tax rate.
for fiscal year 2027. Announce the
[19:02] following date, time, and location.
Second reading and final vote on tax
[19:06] decrease September 8, 2026 at 9:00 a.m.
in the city council chambers, Orange
[19:11] Public Library. Miss Zto,
>> um once again, I'm not going to put up
[19:15] the presentation I probably hit y'all
with several times already this year,
[19:20] but we did propose 866, which is below
not only last year, but also below the
[19:25] no new revenue rate. So we effectively
have a tax decrease and we have a tax
[19:33] decrease from last year because those
aren't always the same.
[19:37] » So that's at your pleasure.
>> Okay.
[19:42] » All right. So this is a public hearing
as well. Is there anyone from the public
[19:46] » or council?
>> Okay.
[19:50] » If not, we will close that. Move to
ordinances. 7A. Consider an ordinance
[19:55] adopting a budget for the fiscal year
beginning October 1st, 2026 and ending
[20:00] on September 30th, 2027 in accordance
with the charter of the city of Orange,
[20:04] Texas. Miss
>> with that prepared the budget the the
[20:10] ordinance for budgets come first, right?
So for the budget as proposed.
[20:16] » So
>> um what does he have to say to change
[20:20] that? And then but the next I'll have to
change the name.
[20:23] So again,
>> so again, yes, sir. You'd have to say u
[20:27] proposed to to pass the budget. You
know, I'm sorry. Vote to pass the budget
[20:32] as proposed with additional.
>> So you have a 2% cola taken from the
[20:38] contingency. Obviously have to have a
second and
[20:43] » you have it. You have the sheet so I
don't say it wrong or I can just say it
[20:45] like that.
>> I didn't I didn't I didn't make a sheet.
[20:48] » Okay. I'm sorry.
>> Well, is there are there any is there
[20:51] any discussion before asked for a
motion.
[20:55] » Do we have a
>> a motion? So, the motion will be I'll
[20:59] make the motion. The motion is to
>> pass and adopt I mean to adopt the
[21:04] budget along with the cola of 2% for
city of Orange
[21:10] » general government
>> general government staff. Okay. So,
[21:14] that's a motion. Then we have a motion
and a second. It requires a record vote.
[21:19] So, Mr. Childs
[21:24] Mr. Mortimer
[21:31] » struggling struggling with the company.
>> I'm gonna be quite honest.
[21:35] » Okay.
>> Reason I'm struggling with the cola is
[21:40] the fact that last year it was presented
to us that it was a 4% cola given along
[21:46] with the additional two steps even
though I realized we didn't fund one of
[21:49] them. And city manager said, "I want to
do it now because we don't know what
[21:54] we're going to be able to do in the
future." And the future has come. Future
[21:58] ran into situations with insurance tax
revenue businesses and so it's happen.
[22:05] And so it's just a struggle. Remember
this whether it's at 1% 2% 3 whatever it
[22:11] may be that's an ongoing thing from this
point in perivity as long as we're safe
[22:16] because it continues as part of it.
right now.
[22:24] » Okay.
>> So, may may I ask you if there's a no
[22:27] because you're saying it's the colog.
Are you saying that they I don't I'm
[22:31] trying to understand why not help them
if you felt like they didn't get what
[22:35] they needed last year.
>> No, they got they got that in.
[22:39] » Oh, okay. So, okay. I'm sorry.
>> Okay. I'm sorry. I just I was just like,
[22:43] wait, I didn't know. I'm sorry. No, sir.
No problem. And I'm not trying to judge
[22:47] you. Please don't think that. I just I
want to make sure it's clear. Mr.
[22:50] Chandler,
>> no.
[22:51] » Okay. Mr. Bur,
>> hi.
[22:53] » Hey, Mr. I mean, Miss Salter,
>> um
[22:58] I'm with them on that. Uh we made a
decision last year. Okay.
[23:03] » So, it's a no for me.
>> Okay. Miss McKenna.
[23:06] » Okay.
>> So, so
[23:10] » you need to
>> So, I need a vote, too.
[23:13] » Okay. And I say yes.
is that that counts for our ordinance,
[23:18] right? That vote
[23:22] » that that vote is for the ordinance,
correct?
[23:25] » Okay.
>> The change my ordinance.
[23:30] » Okay. Just making sure.
>> Okay.
[23:34] » Okay. Just making sure.
>> Just want to make sure it was proper.
[23:39] » Okay.
>> So that All right. So that motion
[23:42] passes. We will move to item 7B.
Consider an ordinance making a tax levy
[23:46] and fixing the maintenance and
operations tax rate, debt service tax
[23:50] rate, and total tax rate for the city of
Orange, Texas for the fiscal year
[23:54] beginning October 1st, 2026 and ending
September 30th, 2027 upon all taxable
[24:00] property in the city of Orange, Texas on
January 1st, 2026 according to the laws
[24:04] of Texas, the charter provisions and the
ordinances of the city of Orange, Texas,
[24:08] and providing that the set taxes levied
shall be collected. And if anybody will
[24:14] make the motion, you'll have to read the
following motion. Miss,
[24:16] » so this is to propose the tax rate at
866, which I already said was lower than
[24:21] last year. And this is the cap. You
cannot go above it even if you want to.
[24:25] Like you're already set at 866. So I'm
leave it over to you,
[24:31] » mayor. I'll read the motion for us.
>> Okay. Thank you, Mr. Childs.
[24:35] » Uh I make the motion. I move that the
property tax rate be decreased by the
[24:40] adoption of a tax rate of
0.86600
[24:46] per 100
>> dollars which is effectively a 06
[24:50] decrease in tax rate.
>> Thank you Mr. Childs. Do we have a
[24:54] second? Second.
>> Okay, we have a second. So we will go
[24:57] through again. Mr. Childs,
>> Mr. Mortimer. Hi.
[25:00] » Mr. Chandler. Hi.
>> Mr. M. Mr. Bur. Hi. Miss Salter. Miss
[25:04] McKenna. Hi. And I say I as well. Okay.
That motion passes. Do I have a motion
[25:08] to adjurnn? Meetings adjourned.