1
00:00:33,920 --> 00:00:34,880
I see

2
00:02:41,180 --> 00:02:43,040
this budget process will

3
00:02:46,780 --> 00:02:54,400
give us each wisdom and direction as we as we oversee this thing. We will this now. We ask it, Jesus.

4
00:03:28,720 --> 00:03:34,920
We're going to go into the public hearing on the proposed budget for the October 1st, 2026

5
00:03:35,500 --> 00:03:39,100
to September 30, 2027 fiscal year, kind

6
00:03:42,520 --> 00:03:45,800
of going to the open, I guess we need to public

7
00:03:48,650 --> 00:03:49,210
speakers.

8
00:03:49,630 --> 00:03:52,610
Do we have anybody wanting to speak?

9
00:03:55,200 --> 00:03:55,420
Okay.

10
00:04:01,870 --> 00:04:20,950
I just want to answer questions, so I guess y'all saw in your packet that you had a copy of the proposed budget that we talked about at the last meeting, that's what's posted online, I updated another copy that really just updated the year-to-date in each category, because we're obviously watching that daily.

11
00:04:21,870 --> 00:04:26,170
You can see by the notes I made that I had to make some adjustments on a few lines.

12
00:04:27,790 --> 00:04:33,710
I've already made those adjustments mainly in fuel and utilities, a couple things in there.

13
00:04:34,670 --> 00:04:41,010
And I just kind of wanted to point out, again, I like to low-ball revenues so that at the

14
00:04:41,010 --> 00:04:42,790
end of the year, we might have a little extra money.

15
00:04:42,970 --> 00:04:49,930
And the reason why, as an example, these are things that were not budgeted this year that

16
00:04:49,930 --> 00:04:57,330
we that we have to do. The lift station on East Maine two of the three pumps need

17
00:04:57,330 --> 00:04:59,950
work and that's around $30,000.

18
00:05:01,990 --> 00:05:04,070
The ground pump that we talked about at the

19
00:05:04,070 --> 00:05:07,130
last meeting that's they did evaluate that pump and we're not going to have to buy

20
00:05:07,130 --> 00:05:12,510
new $40,000 when it is going to be about 18,000 to fix it. Pump controls, this is what

21
00:05:12,510 --> 00:05:15,670
we talked about at the wastewater plant to regulate the battery and lower the

22
00:05:15,670 --> 00:05:21,130
sludge hauling costs, and we're matching a grant, $25,000 grant for some fire gear.

23
00:05:21,770 --> 00:05:27,010
So these things were not budgeted, but were able to do them just because we kind of

24
00:05:27,010 --> 00:05:28,010
watched it throughout the year.

25
00:05:28,230 --> 00:05:33,830
So those costs have not yet reflected in the year to date on the sheet you have, but they

26
00:05:33,830 --> 00:05:34,230
will fit.

27
00:05:35,210 --> 00:05:38,510
And I'd like to get as much of it done as I can this year because I know it'll fit.

28
00:05:39,490 --> 00:05:42,190
And I don't know 13 months from now what's going to fit.

29
00:05:42,190 --> 00:05:44,110
that so we're trying to get this stuff out of the way

30
00:05:44,110 --> 00:05:45,730
and it's got to happen.

31
00:05:47,510 --> 00:05:50,750
So really just I would answer any questions you had

32
00:05:50,750 --> 00:05:54,570
about this just because this is on the record.

33
00:05:55,310 --> 00:06:00,230
I do kind of want to say again that the overall,

34
00:06:00,410 --> 00:06:02,690
this was prepared with the same overall tax rate

35
00:06:02,690 --> 00:06:03,310
as last year.

36
00:06:03,870 --> 00:06:06,250
The overall tax rate is not increasing.

37
00:06:07,130 --> 00:06:10,650
We are shifting three cents of it from the debt service

38
00:06:10,650 --> 00:06:14,430
to the maintenance and operations that we can use that money for daily operations.

39
00:06:15,350 --> 00:06:18,830
And we will, because of the growth in sales tax, we can pay more of our debt with sales

40
00:06:18,830 --> 00:06:24,370
tax and not off people's property tax, and we're just trying to shift that a little bit

41
00:06:24,370 --> 00:06:31,310
at a time so that at the end of the day, we're not property taxing people for debt as little

42
00:06:31,310 --> 00:06:31,890
as possible.

43
00:06:33,190 --> 00:06:38,390
But other than those proportions, the overall tax rate did not increase.

44
00:06:38,390 --> 00:06:44,470
place, which is a little rare, I think, from looking at some surrounding entities this

45
00:06:44,470 --> 00:06:47,070
year, but our rate is not.

46
00:06:49,910 --> 00:06:52,810
But other than that, any questions, I would

47
00:06:57,320 --> 00:06:59,180
not

48
00:07:13,770 --> 00:07:16,350
everybody at once, just one at a time

49
00:07:16,350 --> 00:07:16,910
with your questions.

50
00:07:20,270 --> 00:07:21,310
There's really not a lot to talk about.

51
00:07:21,370 --> 00:07:25,770
Just so you do understand, at the end of this hearing, we are required by law to take an

52
00:07:25,770 --> 00:07:26,750
action on the budget.

53
00:07:26,750 --> 00:07:33,630
You have the option to approve this budget and then at the next meeting we'll do the rates you can't do that the same, but

54
00:07:34,370 --> 00:07:38,110
We at the very least the action has to be somebody has to make a motion

55
00:07:38,110 --> 00:07:43,730
We vote to take action on the budget at the next meeting. We just have to take some type of action at the end of this hearing

56
00:07:45,050 --> 00:07:50,780
So this meeting we would be taking care of the I'm sorry

57
00:07:51,620 --> 00:07:57,340
Repeat that again. So why why one has to be done at one meeting versus the other the state

58
00:07:57,340 --> 00:08:03,100
The tax code does not allow you to adopt your tax rate the same day as your budget hearing.

59
00:08:03,440 --> 00:08:05,660
There has to be at least on a different date.

60
00:08:06,100 --> 00:08:10,020
You have to take some action on this budget today.

61
00:08:10,500 --> 00:08:15,200
The action can simply be, I make a motion, we take action on the budget at our next meeting

62
00:08:15,200 --> 00:08:16,760
on September 24th.

63
00:08:16,760 --> 00:08:20,660
That's typically what we do and then at that next meeting is when we have the three votes,

64
00:08:20,940 --> 00:08:24,480
the budget, the tax rate and then ratifying that rate is here.

65
00:08:24,480 --> 00:08:28,340
We just can't do all three of them on the same date as the budget hearing.

66
00:08:29,900 --> 00:08:33,700
I know you might see on the news a lot of entities are already past this stage and that's fine.

67
00:08:34,700 --> 00:08:39,200
You know, we didn't actually even get our numbers for insurance until after our last meeting.

68
00:08:39,480 --> 00:08:43,960
So we tried to do it earlier, we just didn't have the information to do it.

69
00:08:44,360 --> 00:08:49,840
The current, but insurance rates premiums are in this?

70
00:08:49,840 --> 00:08:51,200
Yes, sir. Yes, or they are.

71
00:08:51,900 --> 00:08:52,300
Okay.

72
00:08:52,620 --> 00:08:55,440
And they were below the number I had put in as an estimate.

73
00:08:56,220 --> 00:08:56,320
Okay.

74
00:08:56,740 --> 00:08:56,900
So.

75
00:08:58,440 --> 00:09:01,100
Any questions that we have on the overall budget?

76
00:09:01,720 --> 00:09:04,800
You want them to come out here or in the council meeting?

77
00:09:05,620 --> 00:09:11,860
You can ask them here and I can make those changes and then when we approve the budget,

78
00:09:12,140 --> 00:09:14,680
actually approve it at the next meeting, those changes will be in there.

79
00:09:15,060 --> 00:09:17,020
I don't know that I have anything suggested change.

80
00:09:17,240 --> 00:09:19,460
I just, for clarification, I just had a couple.

81
00:09:19,460 --> 00:09:24,300
That that's absolutely fun. So now's when you'd like to do that. Yes, sir. Okay.

82
00:09:26,440 --> 00:09:28,800
Sales tax revenue. I was just curious is

83
00:09:30,100 --> 00:09:36,780
It went up significantly from from last years. Now is that was that not but

84
00:09:41,740 --> 00:09:49,400
Obviously the year to the year to date on your sales tax does not have set timber included so there's there's a around a hundred thousand short

85
00:09:49,460 --> 00:09:54,060
there will not be sales tax the year-to-date revenue on water and the year-to-date

86
00:09:54,060 --> 00:09:58,080
revenue on garbage will not those come in on the 28th like like towards the

87
00:09:58,080 --> 00:10:01,800
end of the month so we will get them this fiscal year but they are not

88
00:10:01,800 --> 00:10:07,640
reflected in our ledger yet and typically

89
00:10:11,220 --> 00:10:13,140
what I try to do on the sales tax is

90
00:10:13,140 --> 00:10:17,800
I try to use the last year's number I know it's going to grow a little bit but

91
00:10:17,800 --> 00:10:22,160
instead of forecasting a 2% or 4% growth and then something happening I would

92
00:10:22,160 --> 00:10:26,800
rather use last year's number and then have that growth to address other needs.

93
00:10:27,460 --> 00:10:32,860
Well, I picked out of here how you do your revenue budgeting and your expense budgeting

94
00:10:32,860 --> 00:10:37,060
and I want to comment on on your practice and how you did it.

95
00:10:37,840 --> 00:10:45,280
I did have a question on admin, there was a number of expenses that went up and then under

96
00:10:53,000 --> 00:11:01,920
So I do not take a vehicle allowance and to balance this last year's budget, we used that allocation somewhere else.

97
00:11:02,580 --> 00:11:06,560
But if possible, I think it needs to stay earmarked for in the future.

98
00:11:06,720 --> 00:11:11,200
That way, if something changes in the future, you don't have to find it and come up with that number.

99
00:11:11,200 --> 00:11:17,240
It's just there. I mean it's not there's no intention to use it. I'm certainly not gonna gonna take it

100
00:11:17,240 --> 00:11:24,720
But if you know if anything ever were to change you need to have that available to utilize to for that position

101
00:11:24,720 --> 00:11:30,370
down on contracting inspections and permitting I

102
00:11:31,130 --> 00:11:36,850
Think the way I understand that that's a net in and out right we just pass on what permitting

103
00:11:37,590 --> 00:11:42,010
Yes, or so I have we have three things and I hate that this is behind y'all

104
00:11:42,010 --> 00:11:46,330
But throughout the year, we have three things that are basically a pass-through.

105
00:11:46,550 --> 00:11:50,810
We have our fines and fees are offset by state of Texas court costs.

106
00:11:51,550 --> 00:11:54,670
Now those fines and fees are not just citations and tickets.

107
00:11:54,670 --> 00:11:59,790
It also includes meter turn-offs or emergency late fees, things like that.

108
00:11:59,930 --> 00:12:04,810
But overall, for example, any type of citation or anything

109
00:12:04,810 --> 00:12:06,810
the state gets around 60% of that.

110
00:12:07,290 --> 00:12:15,110
So, I keep up throughout the year, I kind of keep up with a percentage of how much that is true revenue versus how much it goes on.

111
00:12:15,270 --> 00:12:20,770
So, court costs, fines and fees offset, obviously garbage income and garbage expense offsets.

112
00:12:21,070 --> 00:12:27,950
You know, last year we absorbed the increase from the rip trash company because just trying to give our citizens a little break.

113
00:12:28,650 --> 00:12:32,150
And then permit fees and contract permitting those offsets.

114
00:12:32,150 --> 00:12:39,150
There's a little bit on there because we have the software we issue the permits John goes and coordinates all that

115
00:12:39,150 --> 00:12:45,310
But for the most part that's the fees that we get charged for Veritas coming and doing those inspections and plan reviews

116
00:12:46,370 --> 00:12:52,390
Those are the three main ones that pass through the ambulance membership and ambulance expenses is it's a direct

117
00:12:52,390 --> 00:12:56,350
It's just turned around handed to them. So there's no percentage there and

118
00:13:00,760 --> 00:13:01,540
in those numbers

119
00:13:02,960 --> 00:13:05,840
It's kind of a projection as long as the ratio

120
00:13:06,660 --> 00:13:11,560
is close is the main thing you know I don't want to say that we're we're going to collect

121
00:13:11,560 --> 00:13:17,240
and keep 90% of fines and fees because that's not going to happen as long as I know that that

122
00:13:17,240 --> 00:13:23,500
ratio how much comes in how much is going out we're we're pretty safe I understand what you're saying

123
00:13:23,500 --> 00:13:30,260
Jeff then I got a further question then on beyond page two it's under department 10 administration

124
00:13:30,260 --> 00:13:34,120
and it's down under the contract inspection and the permitting.

125
00:13:35,660 --> 00:13:42,620
It looks like last year we had a total activity of 23,000 plus an issue of predicting 15.

126
00:13:43,780 --> 00:13:50,120
So last year we knew that like a commercial occupancy that we know is coming in, they're

127
00:13:50,120 --> 00:13:53,160
going to have commercial meters, they're going to have some commercial plan review.

128
00:13:53,620 --> 00:13:56,600
We just kind of know what's come in versus what's going on.

129
00:13:56,600 --> 00:14:04,240
And there could be, you know, we know that like meter taps, which we're passing that

130
00:14:04,240 --> 00:14:10,140
into the revenue, their savings fund, but when this thing on 16 gets to roll in, there's

131
00:14:10,140 --> 00:14:12,920
52 water taps coming, you know.

132
00:14:13,040 --> 00:14:19,960
So I try to project that, but again, as long as those two are the ratio between the permitting

133
00:14:19,960 --> 00:14:21,760
and the expense is close.

134
00:14:22,500 --> 00:14:24,320
And I track that, looks it over here.

135
00:14:24,320 --> 00:14:29,980
So, you know, we want to keep that, they're going to do the 52 one at a time though.

136
00:14:30,880 --> 00:14:34,240
Well, they're going to go through and they've already done a lot of them, but that's, I'm

137
00:14:34,240 --> 00:14:38,000
just saying that's something like I knew that McDonald's was coming, and there's going

138
00:14:38,000 --> 00:14:42,160
to be a lot of permitting and plan review because there's a lot of plan review on something

139
00:14:42,160 --> 00:14:45,920
like that between our engineers, their engineers and things like that, but you know, homes

140
00:14:45,920 --> 00:14:49,140
and things, it's not, it's not as significant.

141
00:14:49,880 --> 00:14:59,900
As long as I know that, you know, I can't say we're going to make $20,000 on plan review and only have to spend $1,000, I know that's not right, that's just making up a number.

142
00:15:00,180 --> 00:15:03,420
So I'm trying to keep these percentages, you know, we're up close.

143
00:15:16,700 --> 00:15:41,940
This will show up in the amendment in the actual meeting, but you might notice in this budget, just so I can explain it and say it kind of on the record. So, EDC payroll is in our payroll system. Now, the EDC out of their budget pays that payroll. But what happens is, or what has been happening is we issue that check.

144
00:15:41,940 --> 00:15:46,820
and in their reimbursement goes directly into the payroll fund, which is not the general

145
00:15:46,820 --> 00:15:52,860
fund. It's 900. It's not a 100 fund. So there is no expense to us in there. But what

146
00:15:52,860 --> 00:15:55,860
happens when you're looking at this budget, when the auditor looks at this budget, says

147
00:15:55,860 --> 00:16:03,780
how much money did you spend? That amount of money is reflected that it's being spent

148
00:16:03,780 --> 00:16:11,280
with no revenue numbers stuck in here. So this next year, the numbers for that are in

149
00:16:11,280 --> 00:16:16,300
here and they are reflected in the revenue line and the EDC reimbursement that line has

150
00:16:16,300 --> 00:16:21,060
been adjusted to reflect those expenses. But for this year, the adjustment we're making

151
00:16:21,580 --> 00:16:27,100
is to adjust and show that so that the audit that they're fixing to do next month as we

152
00:16:27,100 --> 00:16:32,780
close out will show because the general fund spends more than it makes. The water fund has

153
00:16:32,780 --> 00:16:37,200
to make that up. Well, that's that much more the water funds having to give to make it up

154
00:16:37,200 --> 00:16:41,840
So we can we can keep more water fund in the water fund it it's there's no

155
00:16:41,840 --> 00:16:47,340
Difference to expense or income. It's just a clear documentation of where that money is going coming from

156
00:16:48,060 --> 00:16:54,940
So that's why those numbers in the 199 have never had a number in there before but this time there's a budgeted number there

157
00:16:54,940 --> 00:16:56,500
For tracking this

158
00:17:02,200 --> 00:17:05,760
one is budget related, but it's just ignorance on my part

159
00:17:06,500 --> 00:17:07,920
We show tower rent

160
00:17:08,880 --> 00:17:10,860
Expenses over water and waste water

161
00:17:10,860 --> 00:17:15,940
Do we rent any space for our towers?

162
00:17:16,140 --> 00:17:21,820
They do. They rent it to some Wi-Fi companies and phone and stuff like that.

163
00:17:21,940 --> 00:17:23,740
There's antennas on those towers.

164
00:17:23,980 --> 00:17:24,840
They rent that. Yes, sir.

165
00:17:24,900 --> 00:17:26,800
But does it show revenue in our?

166
00:17:27,880 --> 00:17:29,860
Yes, sir. It should be it's 100.

167
00:17:31,000 --> 00:17:31,980
Let me see up there.

168
00:17:32,080 --> 00:17:33,440
The tower rate goes in the 500.

169
00:17:33,700 --> 00:17:36,380
Oh, that's right because it's on the water towers.

170
00:17:36,660 --> 00:17:38,440
Yeah, it's in the 500 revenue.

171
00:17:38,440 --> 00:17:41,900
There will be a 500 and then a five digit number.

172
00:17:43,660 --> 00:17:52,540
It is 540-205, but it's because they're on the water tower, so they're the one, they're

173
00:17:52,540 --> 00:17:53,280
interested.

174
00:17:53,860 --> 00:17:54,380
I didn't see that.

175
00:17:55,040 --> 00:18:00,680
I saw this one here, I thought, surely we're making some money on tower rental space.

176
00:18:06,190 --> 00:18:10,150
We're going to have to watch credit card fees that, you know, a couple years ago, credit

177
00:18:10,150 --> 00:18:15,510
credit card fees, eight us up to the tune of nearly $50,000 because we were paying for

178
00:18:15,510 --> 00:18:19,650
everybody's miles and points and cash back and everything.

179
00:18:20,870 --> 00:18:23,610
And Theresa and Kevin and everybody got that fixed.

180
00:18:23,610 --> 00:18:26,870
Well now just a couple of months ago all the credit card companies went up on their fees again.

181
00:18:27,650 --> 00:18:30,350
So that has been reflected the last couple months.

182
00:18:30,590 --> 00:18:33,850
So instead of the 3% they've gone up to 4.

183
00:18:34,330 --> 00:18:35,530
So we're going to have to kind of watch that.

184
00:18:35,530 --> 00:18:39,030
that I adjusted those numbers for next year, but we're going to have to kind of watch

185
00:18:40,450 --> 00:18:44,430
that that doesn't sneak back up on us again, where we're eating all those fees.

186
00:18:44,890 --> 00:18:45,250
We

187
00:18:47,900 --> 00:18:54,320
went over this year because unbudgeted manholes, which you called out,

188
00:18:54,680 --> 00:18:58,740
are we caught up or not expecting any more than this coming year?

189
00:18:59,660 --> 00:19:03,540
We're not expecting any more now, I didn't expect those three in all honesty.

190
00:19:04,180 --> 00:19:33,440
You know, one of them was, well, one of them was planned and one of them was a sinkhole formed, but again, there's a number in there to, in part of that number for water repair and wastewater repair includes street material, so that we're not using up our street material on repairs, they pay for their own street material, it's part of that number, but that, again, that's why I don't, you know, I don't, I try to, I know it seems like a big,

191
00:19:33,440 --> 00:19:37,240
number but I budget low on the revenue for like water sales and waste water

192
00:19:37,880 --> 00:19:42,740
collection service because I know we're gonna have something and if I if I put

193
00:19:42,740 --> 00:19:47,540
that number in here we're gonna want to spend it so I just I don't want to

194
00:19:47,540 --> 00:19:49,880
spend it do we have to yeah

195
00:19:53,950 --> 00:19:56,190
I mean it's an open hearing anybody that has any

196
00:19:56,190 --> 00:20:00,290
questions and comments yeah from the audience we'd like to speak on the budget

197
00:20:00,910 --> 00:20:03,150
you're welcome to speak we

198
00:20:05,610 --> 00:20:10,410
are in a public hearing so we want to make sure that

199
00:20:10,410 --> 00:20:12,990
we give you guys the opportunity to speak

200
00:20:17,500 --> 00:20:19,940
no that's yeah that's

201
00:20:19,940 --> 00:20:22,940
literally any that's all my questions and

202
00:20:26,500 --> 00:20:29,280
again I don't mind the questions you

203
00:20:29,280 --> 00:20:35,460
need to challenge me it's make sure we're all looking at it so is there anybody

204
00:20:35,460 --> 00:20:40,300
else so I believe we need to make a motion to come out of the public

205
00:20:40,300 --> 00:20:44,920
carrying so that we can move into the action item. So do I hear a motion?

206
00:20:45,280 --> 00:20:47,100
I make a motion that we've come out of public hearing.

207
00:20:47,580 --> 00:20:51,640
All right here is second. Second. All in favor?

208
00:20:52,340 --> 00:20:56,000
Hi. So we're coming out of that public hearing at 618.

209
00:20:57,340 --> 00:21:02,280
Now we're going into action items which is discussion, consideration of

210
00:21:03,120 --> 00:21:12,940
on the adoption of the October 1st, 2026, September 30th, 2027, fiscal year, proposed budget.

211
00:21:14,060 --> 00:21:16,020
So do I hear a motion on any of that?

212
00:21:16,220 --> 00:21:16,860
So moved.

213
00:21:18,180 --> 00:21:19,140
I'll second ten.

214
00:21:21,560 --> 00:21:25,360
Are you approving it or are you taking action at the next?

215
00:21:26,540 --> 00:21:27,620
Can we approve it right now?

216
00:21:27,620 --> 00:21:41,740
Now, you can, I would just say that, you know, it will be an action item at the next meeting, and if you, you would still have the opportunity to make a change up until the time you make that motion at the meeting, but if you do it now, it's set.

217
00:21:42,700 --> 00:21:44,660
Yeah, I'm confident in it, but I'm just saying it's set.

218
00:21:44,940 --> 00:21:56,020
I think we need the motion needs to be to review my motion to push that process to the next monthly meeting.

219
00:21:56,020 --> 00:22:06,120
Do I hear a second all in favor okay so do I hear I guess a motion to I

220
00:22:07,300 --> 00:22:13,340
adjourn the public hearing and yeah I make a motion to adjourn this meeting all in

221
00:22:13,340 --> 00:22:26,000
favor I mean second all in favor all right no nice all right so then we'll start

222
00:22:26,000 --> 00:22:27,340
You