[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.

City of Orange Texas September 1, 2026 Special Call Meeting

Transcript