Mar 18, 2025 City Council

[ Call to Order]

[00:00:08]

ALL RIGHT.

THE TIME IS 6:00 PM OUR REGULAR CITY COUNCIL MEETING FOR MARCH 18TH, 2025 IS NOW IN SESSION.

FIRST ON THE AGENDA IS COUNCIL MEMBER WESTBROOK WILL LEAD US WITH THE OPENING PRAYERS AND THE PLEASURES OF ALLEGIANCE TO THE FLAGS OF THE UNITED STATES AND THE STATE OF TEXAS.

PLEASE RISE.

GOOD EVENING.

UH, EVERYBODY STAND.

UM, HEAVENLY FATHER, WE COME BEFORE YOU TODAY WITH HEARTS FILLED WITH GRATITUDE AND HUMILITY AS WE PREPARE TO SERVE THE PEOPLE OF THIS GREAT CITY.

ON THIS OCCASION, AS WE HONOR WOMEN'S HISTORY MONTH, WE PAUSE TO REFLECT ON THE EXTRAORDINARY VIRTUES DISPLAYED BY WOMEN THROUGHOUT HISTORY, BOTH IN SCRIPTURE IN OUR OWN, AND IN OUR OWN LIVES.

WE GIVE THANKS FOR THE WISDOM OF DEBORAH, THE JUDGE AND PROPHET WHO LED HER PEOPLE WITH COURAGE AND DISCERNMENT.

MAY WE DO THE SAME? WE REMEMBER THE FAITHFULNESS OF RUTH WHOSE LOYALTY AND COMMITMENT TO HER FAMILY REMINDS US TO SERVE OUR COMMUNITY WITH AND DEF DEFEATABLE LOVE AND COMPASSION MAY DO THE SAME.

WE CELEBRATE THE RESILIENCE OF ESTHER WHO RISKED EVERYTHING TO SPEAK UP FOR HER PEOPLE AS HER VOICE WAS USED TO ADVOCATE.

FOR THOSE WHO CANNOT ADVOCATE FOR THEMSELVES.

MAY WE DO THE SAME.

WE ARE INSPIRED BY MARY MAGDALENE, A FAITHFUL WITNESS TO YOUR TRUTH AND GRACE, AND WHO SOUGHT WHAT IS RIGHT AND TRUE.

MAY WE DO THE SAME LORD, AS WE UNDERTAKE THE WORK OF GOVERNANCE, REMIND US THAT OUR RESPONSIBILITY IS NOT FOR PERSONAL GAIN, BUT FOR THE COMMON GOOD.

HELP US TO SERVE WITH HUMILITY, PATIENCE, AND A SERVANT'S HEART, HONORING THE LEGACY OF WOMEN WHO HAVE PAVED THE WAY FOR PROGRESS AND JUSTICE.

BLESS THIS MEETING TODAY AND GUIDE OUR DISCUSSIONS AND DECISIONS.

MAY THEY REFLECT YOUR LOVE AND BRING PEACE, PROSPERITY, AND HOPE TO OUR CITY AND YOUR HOLY NAME.

WE PRAY ALL MEN.

I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA TO THE REPUBLIC WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, AND LIBERTY AND JUSTICE FOR ALL.

HONOR THE TEXAS FLAG PLEDGE ALLEGIANCE TO THE TEXAS ONE STATE HONOR.

GOD WON AN INVISIBLE THANK YOU.

COUNCIL MEMBER WESTBROOK.

OKAY, I HAVE A SPECIAL

[ Special Announcements Hal Baldwin Scholarship (R.Gutierrez)]

AS A REMINDER, STUDENTS WHO ARE PARTICIPATED PARTICIPATING IN THE HAL BALDWIN SCHOLARSHIP ARE REQUIRED TO SIGN IN ON THE SHEET LOCATED IN THE BACK.

IF YOU ARE VIEWING THIS, UH, ON YOUTUBE, YOU CAN, UM, EMAIL US AT ASGONZALEZ@SHIRTZ.COM.

THAT'S S-G-O-N-Z-A-L-E Z@SHIRTZ.COM.

ALRIGHT, FIRST ON THE AGENDA IS, UH,

[ City Events and Announcements Announcements of upcoming City Events (B. James/S. Gonzalez) Announcements and recognitions by the City Manager (S. Williams) Announcements and recognitions by the Mayor (R. Gutierrez)]

ANNOUNCEMENTS OF UPCOMING EVENTS.

MS. GONZALEZ? YES.

THANK YOU, MAYOR.

UM, JUST A COUPLE FOR TONIGHT.

SO ON SUNDAY, MARCH 23RD IS A NATURE SCAVENGER HUNT AT CRESCENT BEND NATURE PARK.

THAT'LL BE AT 3:30 PM ON FRIDAY, MARCH 28TH, WE HAVE OUR CITY COUNCIL PRE-BUDGET RETREAT.

UM, 8:30 AM HERE IN THE CITY COUNCIL CHAMBERS, UH, NOTE THAT ON SATURDAY, MARCH 30TH, OUR KICKBALL SEASON STARTS, AND THAT'S GONNA BE IN MEYER PARK AT 6:00 PM AND THEN FINALLY, OUR NEXT MEETING WILL BE BACK HERE, APRIL 1ST AT 6:00 PM IN THE COUNCIL CHAMBERS.

THANK YOU.

THANK YOU.

ALL RIGHT.

THE ANNOUNCEMENTS AND RECOGNITIONS BY OUR CITY MANAGER, MR. WILLIAMS. THANK YOU, MAYOR.

JUST A COUPLE QUICK ANNOUNCEMENTS.

SIDNEY GARCIA IN THE EMS DEPARTMENT IS PROMOTED FROM EMT TO PARAMEDIC, SO CONGRATULATIONS TO SYDNEY.

ALSO, THE ECONOMIC DEVELOPMENT DEPARTMENT, THE SHIRTZ ECONOMIC DEVELOPMENT CORPORATION WAS HONORED BY THE TEXAS ECONOMIC DEVELOPMENT COUNCIL AND ACHIEVED THE 2024 ECONOMIC EXCELLENCE RECOGNITION AWARD.

AND THEY ARE AMONG ELITE GROUP OF 71 ORGANIZATIONS THAT WERE RECOGNIZED FOR THE OUTSTANDING, OUTSTANDING ACCOMPLISHMENT.

THANK YOU.

THAT'S ALL I HAVE, MAYOR.

ALL RIGHT.

ANNOUNCEMENTS OF RECOGNITION BY THE MAYOR.

I HAVE NONE.

SO WE'LL MOVE ON.

NEXT ON

[ Hearing of Residents This time is set aside for any person who wishes to address the City Council. Each person should fill out the speaker’s register prior to the meeting. Presentations should be limited to no more than 3 minutes. All remarks shall be addressed to the Council as a body, and not to any individual member thereof. Any person making personal, impertinent, or slanderous remarks while addressing the Council may be requested to leave the meeting. All handouts and/or USB devices must be submitted to the City Secretary no later than noon on the Monday preceding the meeting. Handouts will be provided to each Councilmember prior to the start of the meeting by the City Secretary. All USB devices will be vetted by City IT staff to ensure City property is protected from malware. Discussion by the Council of any item not on the agenda shall be limited to statements of specific factual information given in response to any inquiry, a recitation of existing policy in response to an inquiry, and/or a proposal to place the item on a future agenda. The presiding officer, during the Hearing of Residents portion of the agenda, will call on those persons who have signed up to speak in the order they have registered.]

THIS TIME IS SET ASIDE FOR ANY PERSON WHO WISHES TO ADDRESS THE CITY COUNCIL.

EACH PERSON IS LIMITED TO THREE MINUTES, AND WE ASK BEFORE ADDRESSING THE COUNCIL FOR THE RECORD, PLEASE STATE YOUR NAME AND ADDRESS.

WE ALSO DO HAVE A PUBLIC HEARING SCHEDULED ON THE AGENDA TODAY.

AND YOU MAY SPEAK AT THE PUBLIC HEARING, THE HEARING, THE RESIDENCE OR BOTH.

THE CHOICE IS YOURS.

OUR FIRST SPEAKER TODAY IS STEVEN STARK.

YES, SIR.

THANK YOU, MAYOR CITY COUNCIL.

I AM, UH, STEVEN STARK FROM 3,900 ROYAL SECO CHURCH TEXAS.

AND I'M HERE TO EXPRESS OUR CONCERNS AS THE HOAA ROYAL VERDICT ABOUT THE PUBLIC HEARING, THE WATER PORTION.

IT'S NOT THE ACTUAL

[00:05:01]

BUT THE RED LINE THAT SHOWS WHAT WE OBJECTED TO IS STILL THERE.

UH, WE ONLY SEE THE ONE PLAN THAT THE CITY HAS PUT FORWARD.

WE HAVEN'T SEEN ANYTHING ELSE.

AND I, BRIAN HAS BEEN VERY GOOD AT KEEPING ME UP TO DATE.

IT'S ON HOLD AND ALL THAT GOOD STUFF.

BUT I WOULD LIKE TO INVITE THE CITY COUNCIL MEMBERS OUT.

GIVE ME A CALL.

UH, CAN I DO THAT? GIVE 'EM A PHONE NUMBER? IS THAT OKAY? GIMME A CALL AT (210) 788-5473 SO I CAN SHOW YOU THE LOCATION.

WE'RE NOT ASKING YOU TO GET OUT OF THE RED LINE.

IT'S ALREADY IN THE COMPREHENSIVE PLAN.

IT'S JUST PUT IT ON THE OTHER SIDE AND NOT BE IN OUR BACKYARD.

'CAUSE RIGHT NOW, THE PROPOSED PLAN SHOWS IT RIGHT NEXT TO THE BACKYARD FENCES OF THE PEOPLE THAT ARE RIGHT ON THE GREEN BELT.

AND YOU'RE GONNA TAKE A 20 FOOT SWATH OF ALL OF THE TREES IN ORDER TO BUILD THAT WATER LINE.

IF IT GOES THERE, WE WOULD LIKE TO PUT IT ON THE OTHER SIDE OF OUR DRAINAGE DITCH, WHICH IS RUNNING ALONG IN THE COMMERCIAL DEVELOPMENT.

AND THAT'S THE ONLY PART THAT WE DON'T LIKE AS AN HOA AS IT HAVING RIGHT IN OUR BACKYARD, RIGHT UP NEXT TO THE FENCE.

'CAUSE OUR SIDEWALK IS GONNA GO ON TOP OF IT OR A WALKWAY.

AND THAT'S NICE.

IT'S A NICE PARK AREA, BUT YOU'RE GONNA HAVE EVERY DOG BARKING AS YOU WALK BY.

'CAUSE I'VE DONE THAT ON SEVERAL OTHER PARKS THAT HAVE THE WALKWAY RIGHT IN THE BACKYARD.

IT'S NICE, BUT I DON'T THINK THE RESIDENTS WOULD REALLY LIKE IT.

AND OURS DON'T.

UH, WE VOTED ON THIS AND 100% OF THE OWNERS SAID, NO, WE DIDN'T LIKE IT AT THE CURRENT LOCATION, BUT IT'S, WE'RE NOT MOVING IT OUT OF THE RED LINE.

THAT'S SHOWN IN THE COMPREHENSIVE PLAN.

WE JUST WANNA KIND OF MOVE IT NEXT TO 30 UP TOWARDS, NEXT TO HIGHWAY 30 0 9 AND AWAY FROM OUR BACKYARDS.

THAT'S ALL I HAVE.

THANK YOU VERY MUCH.

THANK YOU.

OUR NEXT SPEAKER'S, MAGGIE TITTER.

GOOD EVENING COUNCIL.

UH, IN REFERENCE TO THE PRAYER TONIGHT.

UH, COUNCILMAN WESTBROOK, THANK YOU SO MUCH IN THE CITY OF SHIRTZ FOR SUCH A LOVELY LUNCH LAST WEEK, UH, HONORING WOMEN, UH, IN BUSINESS IN THE CITY, GOVERNMENTS IN THE AREA.

UM, IT WAS UNEXPECTED.

IT WAS, UH, IT WAS QUITE A BEAUTIFUL LUNCH, SO THANK YOU SO MUCH FOR THAT.

ALSO, I WANNA GIVE A SHOUT OUT AND THANKS TO, UH, NOT ONLY BRIAN JAMES AND HIS OFFICE, UH, TAMMY LAWRENCE IN PARTICULAR, WE HAD A CHAMBER MEMBER THAT, UH, WAS DEALING WITH, UH, SOME ISSUES WITH A CONTRACTOR WITH, UH, SIDEWALKS THAT ARE BEING PUT IN OVER BY THE STARBUCKS AREA, TRI-COUNTY, UH, CORRIDOR PARKWAY, AND, UH, MOUNDS OF DIRT AND DEBRIS AND TRASH AND THINGS THAT HAD BEEN THERE FOR SEVERAL WEEKS.

AND THE CITY WAS SO EXPEDITIOUS IN GETTING THIS DONE, AND I BELIEVE IT WAS TAMMY IN PARTICULAR THAT WAS REALLY DOGGED AND TRYING TO FIND OUT WHO THE CONTRACTOR WAS IN LESS THAN A WEEK, UH, THE PILES OF DIRT AND THINGS WERE MOVED OUTTA THE WAY AND GONE.

SO THANK YOU ALL SO MUCH FOR, FOR THAT.

REALLY APPRECIATE THAT.

THIS FRIDAY, MARCH 21ST AT 5:00 PM UM, AN ICON IN THE CITY OF SHIRTZ, UH, ABEL GOMEZ AND HIS WIFE ARMITA.

UH, THEY HAD RETIRED.

THEY HAD SOLD ABEL STEINER IN JANUARY, BUT WE'RE GONNA DO AN OFFICIAL RETIREMENT SENDOFF FAREWELL KICKOFF AT, UH, BLUE BONNET PALACE.

IT'S AT 5:00 PM FIVE TO 8:00 PM THIS FRIDAY.

IT'S FREE.

UH, THE JOHNS FAMILY IS SPONSORING THE DINNER FOR EVERYBODY THAT IS COMING.

AND, UH, WE ARE TAKING UP, UH, DONATIONS IN A, IN A VACATION THEMED BOX TO, UH, SEE IF WE CAN SEND ABEL AND ARM MEET ON THE VACATION THEY HAVEN'T TAKEN IN 34 YEARS.

SO IF YOU ALL WANT TO PLEASE COME OUT AND HAVE A CHANCE TO THANK ABEL AND ARMITA FOR ALL THAT THEY'VE DONE FOR OUR COMMUNITY, AND, UH, HAVE SOME REALLY GOOD FOOD AT BLUEBONNET ON THE 28TH.

WE HAVE COFFEE WITH THE CHAMBER AT OUR SHIRTZ LOCATION FROM SEVEN 30 TO NINE.

PLEASE COME AND ALL HAVE SOME FREE COFFEE AND TREATS ON THE 29TH.

UH, WE HAVE SHRED DAY, UH, THAT IS DONE BY OUR HYPER, OUR YOUNG PROFESSIONALS COMMITTEE, AND IT'S GOING TO BENEFIT COMMUNITIES AND SCHOOLS.

IT'S FROM NINE TO 12 AT THE SHIRTZ LOCATION.

1730 SHIRTZ PARKWAY.

UH, YOU CAN BRING UP TO FIVE BOXES OF ITEMS TO BE SHRED PAPERS, NO ELECTRONICS, AND IT IS FREE SHREDDING.

BUT WE ARE, HOWEVER, ASKING IF SOMEBODY WANTS TO MAKE A DONATION AND 50% OF THE PROCEEDS AFTER WE TAKE CARE OF THE EXPENSES ARE GOING TO COMMUNITIES AND SCHOOLS.

AND, UH, LAST BUT NOT LEAST, APRIL 4TH, PLEASE MARK YOUR CALENDAR, ANOTHER NEW BUSINESS BEING WELCOME TO SHIRTS, A TWISTED TREE ADVERTISING AGENCY.

UH, WE'RE GONNA DO A RIBBON CUTTING AT OUR SHIRTS.

LOCATION, 1730 SHIRTS PARKWAY AT 10:00 AM THANK YOU.

NEXT IS CARMEL TERRELL.

GOOD EVENING.

I'M CARMEL TERRELL, LOCATED AT

[00:10:01]

AND I'M HERE AS PART OF THE CHAMBER'S LEADERSHIP CORE CLASS.

SO I'M JUST HERE TO OBSERVE.

THANK YOU.

ALRIGHT, WE'LL MOVE

[ Consent Agenda Items The Consent Agenda is considered self-explanatory and will be enacted by the Council with one motion. There will be no separate discussion of these items unless they are removed from the Consent Agenda upon the request of the Mayor or a Councilmember.]

NEXT ON THE AGENDA IS CONSENT.

AGENDA ITEMS. THESE ARE SELF EXPL EXPLANATORY ITEMS THAT ARE PROVIDED TO COUNCIL AND AVAILABLE FOR PUBLIC VIEWING.

AND IF COUNCIL, UH, COUNCIL CAN REMOVE ANY OF THE ITEMS THAT ARE PRESENTED ON THE CONSENT AGENDA ITEMS. UH, FIRST IS MINUTES.

NUMBER TWO IS APPOINTMENTS, REAPPOINTMENTS AND RESIGNATIONS OF CITY BOARDS, COMMISSIONS, AND COMMITTEES.

ITEM NUMBER THREE IS RELU.

RESOLUTION NUMBER 25 R 0 3 5.

ITEM NUMBER FOUR IS RESOLUTION 25 R 0 2 6.

COUNSEL, DO ANY OF THESE NEED TO BE REMOVED FOR SEPARATE ACTION? SEE, NONE.

IS THERE A MOTION TO APPROVE WITH CONSENT? AGENDA ITEMS ONE THROUGH FOUR? SO MOVE SECOND.

HEY, MOTION WAS MADE BY COUNCIL MEMBER MACALUSO, OR COUNCIL MEMBER DAVIS.

OKAY.

AND SECOND BY COUNCIL MEMBER WESTBROOK COUNCIL, ANY COMMENTS? PLEASE CAST YOUR VOTE.

WE CAN PUBLISH THE VOTE, PLEASE.

WE HAVE FIVE AYES, NO OBJECTIONS.

MOTION PASSES.

ALL RIGHT.

WE'LL MOVE ON TO

[5. Resolution 25-R-034 - Accepting the Audit Report and the Annual Comprehensive Financial Report. (S.Gonzalez/J.Walters)]

ACCEPTING THE OTHER REPORT AND THE ANNUAL COMPREHENSIVE FINANCIAL REPORT.

MR. WALTERS FLOOR IS YOURS.

GOOD EVENING, MAYOR AND COUNCIL.

MY NAME IS JAMES WALTERS.

I'M THE FINANCE DIRECTOR HERE FOR THE CITY OF SHIRTZ.

TONIGHT WE HAVE A RESOLUTION BEFORE YOU TO ACCEPT OUR ANNUAL FINANCIAL, UH, ANNUAL COMPREHENSIVE FINANCIAL REPORT, WHICH IS THE CULMINATION OF, UH, THE ENTIRETY OF OUR FINANCIAL, UH, PERFORMANCE, UH, FOR THE 20 23 20 24 FISCAL YEAR.

UM, GOING INTO IT, WE DO HAVE, UH, TRAVIS ROGERS FROM OUR AUDITING FIRM, PATILLO BROWN AND HILL.

UH, TO KIND OF GO INTO MORE DETAIL, UM, AS WELL AS, UH, WE HAD MET WITH THE AUDIT COMMITTEE CONSISTING OF, UH, FINANCE REPRESENTATIVES, THE CITY MANAGER'S OFFICE, AND THREE MEMBERS OF COUNCIL, UH, TO GO INTO THE REPORT IN A LITTLE MORE DETAIL, UM, GO OVER ANY SORT OF, UH, FINDINGS OR SUGGESTIONS FROM THE AUDITORS.

UH, LUCKILY WE HAD A VERY GOOD, UH, REPORT.

UH, THE AUDITORS DIDN'T FIND ANYTHING, UH, UH, MATERIAL AND, UH, UPHELD THE, OUR FINANCIAL CONTROLS ARE, UM, STILL VERY GOOD, UH, WITH NO INCIDENT TO REPORT.

UM, SO I'LL TURN IT OVER TO TRAVIS TO KIND OF GO AHEAD SOME HIGHLIGHTS OF THE REPORT AND THEN WE'LL BE AVAILABLE TO ANSWER ANY QUESTIONS YOU STILL MAY HAVE, UM, OVER THE REPORT OR, UH, OVER OUR, UM, UH, PROCESS OF ACCOUNTING LIKE YOU GOT EACH OF THOSE RIGHT THERE.

ALRIGHT.

THANK YOU JAMES.

AND, UH, THANK YOU MAYOR AND COUNCIL FOR HAVING ME TONIGHT.

UH, MY NAME IS TRAVIS ROGERS.

I AM A CPA WITH PATELLA, BROWN AND HILL BASED OUT OF WACO.

AND, UH, HERE TO SHARE WITH YOU THIS EVENING THE RESULTS OF THE FISCAL YEAR 2024 FINANCIAL AUDIT.

I BELIEVE YOU HAVE EACH RECEIVED SHOULD HAVE RECEIVED A COPY OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR 2024.

GOING TO SET A COVER, A COUPLE OF QUICK HIGHLIGHTS IN THIS DOCUMENT, AND WE'LL REFERENCE THE PAGE NUMBER FOR EACH ITEM.

IT'S GOING TO BEGIN VERY BEGINNING ON PAGE ONE WITH THE INDEPENDENT AUDITOR'S REPORT.

SO THIS IS THE SAME, UH, STANDARDIZED LETTER YOU'RE ALL USED TO SEEING IN PRIOR YEARS AS THE STANDARDIZED LANGUAGE ABOUT OUR RESPONSIBILITY AS THE CITY'S OUTSIDE AUDITORS FOR RENDERING AN OPINION ON THESE FINANCIAL STATEMENTS BASED ON OUR AUDIT, ALSO ON THE RESPONSIBILITY OF THE MANAGEMENT OF THE CITY FOR THE PREPARATION AND FAIR PRESENTATION OF THESE FINANCIAL STATEMENTS IN ACCORDANCE WITH US GAP ALL FUNDS STUFF.

BUT YOU WILL SEE TOWARDS THE TOP OF PAGE ONE WHERE IT SAYS, REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS AND OPINIONS.

THE SECOND PARAGRAPH DOWN UNDER THAT HEADER WHERE IT SAYS, IN OUR OPINION, THE ACCOMPANYING FINANCIAL STATEMENTS PRESENT FAIRLY IN ALL MATERIAL RESPECTS, RESPECTIVE FINANCIAL POSITION, CHANGES IN FINANCIAL POSITION AND CASH FLOWS AS OF AND FOR THE YEAR ENDED SEPTEMBER 30TH, 2024.

SO THAT'S WHAT WE CALL AN UNMODIFIED OR A CLEAN OPINION, MEANING THAT AS A RESULT OF OUR AUDIT OVER THE CITY'S FINANCIAL STATEMENTS, FINANCIAL RECORDS FOR FISCAL YEAR 2024, NO MATERIAL DEPARTURES FROM US, GENERALLY ACCEPTED ACCOUNTING PRINCIPLES WERE NOTED.

THIS IS THE HIGHEST LEVEL OF ASSURANCE WE CAN PROVIDE AS THE CITY'S OUTSIDE AUDITORS UNDER OUR PROFESSIONAL STANDARDS.

LIKE I SAID, THAT'S THE MAIN HIGHLIGHT.

REST OF

[00:15:01]

VARIOUS OTHER ITEMS. IT'S GOING TO BRIEFLY POINT OUT ONE HIGHLIGHT ALSO IN THE FINANCIAL STATEMENTS.

FLIPPING A LITTLE BIT TO PAGE 17, JUST ON THE GOVERNMENTAL FUND BALANCE SHEET HIGHLIGHTS ALL OF THESE CITY'S MAJOR FUNDS AS OF FOR THE YEAR ENDED SEPTEMBER 30TH, 2024, INCLUDING THE GENERAL OR MAIN OPERATING FUND.

JUST WANTED TO BRIEFLY POINT OUT DOWN TOWARDS THE BOTTOM OF PAGE 17, WHERE YOU CAN SEE TOTAL FUND BALANCE FOR THE GENERAL FUND OF 17.9 MILLION, JUST A LITTLE UNDER 18 MILLION AS OF SEPTEMBER 30TH, 2024.

IT'S GOING TO COMPARE THAT TO COUPLE PAGES OVER ON PAGE 20 ON THE INCOME STATEMENT, WHICH SHOWS THE REVENUES AND EXPENDITURES OF THOSE SAME MAJOR FUNDS FOR FISCAL YEAR 2024 IS GOING TO COMPARE THAT 17.9 MILLION IN FUND BALANCE.

WE ALSO SEE THE GENERAL FUND HAD JUST OVER 46 MILLION OF EXPENDITURES FOR FISCAL YEAR 2024.

IF WE COMPARE THAT 17.9 MILLION FUND BALANCE TO THE 46 MILLION IN EXPENDITURES, IF WE'RE, UH, TALKING IN TERMS OF, LET'S SAY MONTHS OUT OF THE YEAR, THE CITY IS REPORTING BETWEEN FOUR AND A HALF AND FIVE MONTHS OF EXPENDITURES AND FUND BALANCE FOR THE GENERAL FUND AND VARIES.

BUT CLASSIC RULE OF THUMB IS SHOOT FOR A RESERVE OF THREE TO SIX MONTHS MINIMUM.

SO IF YOU'RE IN THE MIDDLE OR TOWARDS THE HIGHER END OF THAT RANGE, YOU HAVE WHAT WE WOULD CALL A HEALTHY FUND BALANCE OR A HEALTHY RESERVE.

THOSE WERE THE TWO MAIN HIGHLIGHTS.

WANTED TO POINT OUT IN THE ANNUAL COMPREHENSIVE FINANCIAL REPORT, THERE WERE TWO OTHER DOCUMENTS THAT ISSUED SEPARATELY THE CITY'S SINGLE AUDIT REPORT AND ALSO A LETTER THAT IS O OVER OUR REQUIRED COMMUNICATION WITH YOU, THE GOVERNING BODY OF THE CITY OF SHIRTZ, ESSENTIALLY WITHOUT, UH, GOING INTO TOO MUCH DETAIL, THOSE REPORTS, UH, SUMMARIZED THE, UH, RESULTS OF THE CITY'S FEDERAL SINGLE AUDIT FOR FISCAL YEAR 2024.

IF THERE WERE ALSO, IF THERE WERE ANY FINDINGS OR QUESTIONED COSTS RELATED TO THAT SINGLE AUDIT OR ANY, UH, FINDINGS RELATED TO INTERNAL CONTROL OVER FINANCIAL REPORTING FOR THE CITY, ANY OTHER ISSUES OR CONCERNS OF THAT NATURE, WE WOULD COMMUNICATE THEM TO YOU IN ONE OF THOSE TWO DOCUMENTS, THANKFULLY CAN REPORT.

AND AGAIN, AS WITH THE FINANCIAL STATEMENTS, UNMODIFIED CLEAN OPINION OVER THE FEDERAL SINGLE AUDIT AND NO FINDINGS OR QUESTION COSTS OR OTHER MATTERS NEED TO BE COMMUNICATED TO YOU, THE CITY COUNCIL.

SO THAT WAS THE READER'S DIGEST VERSION, BUT IF ANY OF YOU HAVE ANY QUESTIONS OR COMMENTS, ET CETERA, WHILE YOU HAVE ME HERE, ALRIGHT, THANK YOU.

UH, COUNCIL, ANY COMMENTS? NO COMMENTS.

OKAY.

IS THERE A MOTION TO APPROVE RESOLUTION NUMBER 25 R 0 3 4 ACCEPTING THE AUDIT REPORT AND FINANCIAL REPORT.

MOTION TO APPROVE.

SECOND, I HAVE MOTION BY COUNCIL MEMBER BROWN AND SECOND BY COUNCIL MEMBER WESTBROOK.

ANY OTHER COMMENTS? COUNCIL, PLEASE CAST YOUR VOTE.

WE CAN PUBLISH THE VOTE, PLEASE.

WE HAVE FIVE AYES, NO OBJECTIONS.

MOTION PASSES.

THANK YOU ALL.

THANK YOU.

APPRECIATE IT.

WE'LL MOVE ON TO ITEM NUMBER

[6. Resolution 25-R-021 - Authorizing the approval of a Development Agreement with BFR LLC for the approximately 30 acre tract at FM 1518 and Woman Hollering Road. (S.Williams/B.James)]

THIS ITEM HAS BEEN TABLED AND WE'LL PUT IT ON OUR NEXT MEETING.

SO WE'LL MOVE ON

[7. Resolution 25-R-005 - Approving a Utility Service Extension Request for the Woman Hollering Townhomes. (B.James/K.Woodlee)]

THIS ITEM HAS ALSO BEEN TABLED AND WILL BE PROVIDED AT OUR NEXT MEETING.

SO WE'LL

[8. Public Hearing for presentation and discussion regarding Amendments to the City of Schertz Water and Wastewater Land Use Assumptions, Capital Improvement Plans, and Impact Fees. (B.James/K.Woodlee)]

MS. WOODLEY FLOOR IS YOURS.

GOOD EVENING, MAYOR AND COUNCIL.

HAPPY TO BE HERE THIS EVENING.

UM, WE HAVE OUR, OUR CONSULTANT HERE TO DO

[00:20:01]

I'M GONNA, UM, BUT IN A FEW TIMES TO, TO ADD TO HIS PRESENTATION.

BUT, UM, BEFORE WE GET STARTED, I DID WANT TO, UM, ADDRESS SOMETHING THAT THE CITIZEN MENTIONED.

UH, AS FAR AS THE ACTUAL LOCATION OF THE LINES THAT ARE SHOWN ON THESE PLANS, THEY ARE APPROXIMATE, UH, GOING BASICALLY FROM POINT A TO POINT B IN GENERALLY IN ALIGNMENT THAT THAT MIGHT WORK, BUT IT DOES NOT LOCK IN THE ALIGNMENT.

SO THE PROJECT THAT I THINK WAS BEING REFERRED TO IS THE TRANSMISSION MAIN THAT WILL RUN FROM THE EAST LIVE OAK, UH, WATER TANKS TO THE I 35 WATER TANK.

AND THAT PROJECT IS ON HOLD FOR THE TIME BEING.

UM, WE HAVE NOT PROGRESSED WITH LOOKING AT ALTERNATIVES, BUT WE WILL.

SO THE LINE THAT'S SHOWN ON THE MAP IS NOT SPECIFICALLY IN THE LOCATION, IT'S SHOWN ON THE MAP.

THAT'S JUST AN APPROXIMATE LOCATION, SO I WANTED TO MAKE SURE THAT THAT, UM, THAT WAS CLEAR.

SO, SO THINGS DON'T GET MUDDIED.

UM, SO, UH, I HAVE LEE HAM HERE WHO'S AN ENGINEER WITH LAN, WHO HAS WORKED WITH US OVER THE PAST YEARS TO, UM, COME UP WITH THIS PLAN.

HE'S GOING TO TALK TO YOU ABOUT, UH, THE LAND USE ASSUMPTIONS, THE CAPITAL IMPROVEMENT PLAN, AND HOW, HOW THOSE, UH, PROJECTS WERE SELECTED.

AND THEN ALSO TALK ABOUT THE COSTS, UH, ASSOCIATED WITH THOSE PROJECTS AND HOW THE MAXIMUM ACCESSIBLE IMPACT FEES ARE CALCULATED.

UH, AND THEN WE'LL, UM, HAVE A CONVERSATION ABOUT, UH, SETTING THE RATES.

SO, UM, WITH THAT LEE, THANK YOU KATHY MAYOR COUNCIL.

UM, AS KATHY MENTIONED, I'LL BE GOING OVER THE, UH, IMPACT FEE AND, UH, CAPITAL IMPROVEMENT PLAN THAT WE PUT TOGETHER FOR THE CITY OF SHIRTS.

UH, GENERAL AGENDA, WE'LL BE GOING JUST A QUICK, UH, LOOK AT THE LAND USE ASSUMPTIONS, THEN WE'LL GO INTO HOW A QUICK OVERVIEW OF HOW WE DEVELOP THE CIP COST TO GIVE YOU AN IDEA OF WHERE THOSE NUMBERS COME FROM AND HOW WE DEVELOP THEM.

UH, WHAT THE LIVING UNIT EQUIVALENTS ARE AND WHAT THEY MEAN FOR AS FAR AS IMPACT FEES GO.

UH, CREDIT ANALYSIS.

THIS HAS TO DO WITH THE TEXAS LOCAL GOVERNMENT CODE CHAPTER 3 95 AND HOW IMPACT FEES CAN BE ASSESSED.

UH, THE MAXIMUM IMPACT FEE THAT WE CALCULATED BASED UPON THE ABOVE ITEMS. AND THEN, UH, KIND OF A LOCAL IMPACT FEE COMPARISON JUST TO SEE SO THAT THE CITY CAN SEE WHERE THEY LINE UP WITH, UH, SIMILAR, UM, MUNICIPALITIES IN THE AREA.

AND THEN KIND OF A LOOK AT THE SCHEDULE AND THEN SOME, UH, INFORMATION THAT KATHY WILL RUN OVER.

SO A QUICK LOOK AT THE LAND USE ASSUMPTIONS OVERVIEW.

AGAIN, THIS IS A HIGH LEVEL LOOK, JUST KIND OF WHAT THE ASSUMPTIONS THAT WE CAME UP WITH AND, AND USED TO DEVELOP THIS PLAN, UH, WHERE THERE'S A, UH, BASIS OF THREE ELEMENTS.

WE TOOK THE 2018 LAND USE PLAN MAP TOOK THE EXISTING LAND USES THAT HAD CHANGED FROM THAT LAND USE PLAN.

AND THEN ANY PROPOSED DEVELOPMENTS.

WE WORKED HAND IN HAND WITH THE CITY STAFF AND LOOKED AT DEVELOPMENTS AS THEY CAME UP TO MAKE SURE THAT WE INCORPORATED THOSE IN WHERE THE GROWTH WAS GONNA OCCUR IN THE CITY.

UM, WE ALSO MODIFIED ON, BASED ON INFORMATION RECEIVED FROM THE CITY UP TO APRIL 8TH, 2022.

UH, BIG KEY POINT WAS TO ASSUME THAT ANY OF THESE DEVELOPMENTS EXISTING OR PROPOSED WAS GONNA REMAIN IN PLACE FOR THE 30 YEAR PLANNING PERIOD.

THAT THERE WASN'T GONNA BE ANY MAJOR REDEVELOPMENT OF LIKE A RESIDENTIAL AREA INTO A COMMERCIAL AREA, THAT IT WAS GONNA STAY THE SAME FOR THE 30 YEAR PLANNING PERIOD THAT, UH, THE NEW GROWTH WOULD EXPAND AWAY FROM THE CITY CENTER SPECIFICALLY LIKE THIS AREA, IT'S MOSTLY BUILT OUT.

SO YOU WOULD EXPECT THE MOST OF THE GROWTH TO OCCUR IN THE AREAS THAT ARE RELATIVELY EMPTY AND ARE LESS DENSE THAN THE CITY CENTER WOULD BE.

AND THAT THE DEVELOPMENT PRESSURE WOULD LIKELY BE ALONG THE I 35 CORRIDOR.

AS Y'ALL KNOW, I 35 IS A VERY BUSY HAPPENING PLACE, AND SO THERE'S LOTS OF GROWTH AND LOTS OF, UM, MOVEMENT AND, UH, POTENTIAL FOR, UH, GROWTH IN THAT AREA.

UM, ANOTHER KEY ONE WAS THAT REGIONS THAT CURRENTLY DO NOT LIE WITHIN THE CITIES WATER OR SEWER, CCN WOULD NOT, WOULD STILL REMAIN SO THAT THE CITY WAS NOT LOOKING TO EXPAND ITS CCN OVER THE 30 YEAR PLANNING PERIOD.

THIS MEANS THAT AS THE AREA THAT YOU'RE GOING TO SERVE NOW IS THE AREA YOU'RE GONNA CONTINUE TO SERVE FOR THE NEXT 30 YEARS, AND THAT THEY WOULD REMAIN IN PLACE FOR THAT 30 YEAR PLANNING PERIOD.

SO DEVELOPING THE CIP COST, THREE MAIN ELEMENTS THAT I'M GONNA GO OVER, WE'RE GONNA TALK ABOUT HOW, WHAT THE COST DATA, HOW WE CAME UP WITH THAT, UH, HOW WE DEVELOPED AN INFLATION RATE THAT WE FELT WOULD BE USEFUL FOR DEVELOPING COST OVER THE NEXT 10 TO 30 YEARS.

AND THEN, WHICH, UH, PROJECTS WERE ELIGIBLE FOR THE COST FOR INCLUSION INTO THE IMPACT FEE.

UH, TEXAS LOCAL GOVERNMENT CODE HAS THE THREE CHAPTER 3 9 5 HAS SPECIFIC ELEMENTS THAT DICTATE WHAT YOU CAN INCLUDE AND WHAT YOU CANNOT INCLUDE.

SO THIS IS A VERY BUSY SLIDE, BUT JUST MAINLY THE TO POINT OUT THAT AS WHEN YOU'RE DEVELOPING COST ESTIMATES AND AS, UH, ESTIMATION

[00:25:01]

THIS IS KIND OF A, UH, INDUSTRY STANDARD AND IT WAS FELT THAT AS YOU HAVE A HIGH LEVEL WHERE YOU'RE NOT, AS KATHY MENTIONED, YOU DON'T HAVE A SPECIFIC ALIGNMENT, YOU DON'T HAVE SURVEY TO GO ALONG WITH IT AND ALL THAT, THAT YOU HAVE UNKNOWNS THAT OCCUR WITH THESE PROJECTS.

AND SO YOU WANT TO INCLUDE A CONTINGENCY AND THE CONTINGENCY GETS LARGER, THE MORE UNKNOWNS THAT THERE ARE.

AND SO FOR AT THIS RELATIVELY HIGH LEVEL OF A CAPITAL IMPROVEMENTS PLAN, THE CLASS FOUR SELECTED.

SO A CONTINGENCY AMOUNT OF 30% WAS INCLUDED WITH ALL THE PROJECTS JUST TO MAKE SURE THAT WE CAPTURED THE POTENTIAL FOR ANY UNKNOWNS.

UM, THE SOURCES OF THE COST DATA, WE USE TXDOT ONLINE REPORTS.

TXDOT PUBLISHES ALL OF ITS LOWEST BID ITEMS. AND AS THEY GO THROUGH THE YEAR, WE TOOK THAT INTO ACCOUNT.

WE USED RS MEANS, WHICH IS A STANDARD FOR ESTIMATING CONSTRUCTION AS YOU GO THROUGH.

AND THEN COST ESTIMATES AND BID TABULATIONS FROM PAST AND CURRENT CITY PROJECTS.

AND THE SAME FROM PAST AND CURRENT CITY OR CURRENT LAM PROJECTS.

PUT ALL THOSE TOGETHER TO COME UP WITH, UM, TO COME UP WITH THE DIFFERENT COSTS FOR THE DIFFERENT ITEMS SUCH AS THE PIPE AND THE VALVES AND THE HYDRANTS AND THE MANHOLES AND ALL THOSE VARIOUS ITEMS. UM, TO, UH, TO GO ALONG WITH THAT, WE CALCULATED AN INFLATION RATE.

SO AS Y'ALL ARE FULLY AWARE, SINCE 2020, THE INFLATION HAS BEEN SIGNIFICANT, AND SO WE WANNA MAKE SURE THAT THE CITY TAKES THAT INTO ACCOUNT AS THEY MOVE FORWARD.

AND SO WE TOOK THREE DIFFERENT INDICES, UH, INTO ACCOUNT.

THE RS MEANS HISTORICAL, THE MORTENSON HISTORICAL INFLATION INDEX, AND THEN THE TURNER HISTORICAL INFLATION INDEX AND TOOK DIFFERENT TIME PERIODS, SOME FROM 2020 TO 2024.

AND THEN FOR THE ENTIRE PERIOD, AS YOU CAN SEE HERE, WE ON THE TABLE, WE'VE BROKEN IT DOWN JUST TO KIND OF SEE HOW IT HAS CHANGED THROUGHOUT THE YEARS.

YOU DON'T WANT TO GO OVER A SHORT TIME PERIOD AND HAVE AN EXTREME, UH, INFLATION RATE AS SHOWN FROM LIKE 2020 TO 2023, BUT YOU ALSO DON'T WANNA MAKE SURE THAT YOU'RE CAPTURING THOSE TIMEFRAMES WHEN YOU DO HAVE HIGH INFLATION OR INCORPORATING THOSE.

AND SO ALL THAT TO SAY IS THAT WE FOUND AN AVERAGE OF 4.86%, BUT AVERAGES CAN BE SKEWED BY OUTLIERS.

AND SO WE CHOSE THE MEDIAN, WHICH IS THE MIDDLE NUMBER.

AND SO THAT INDICATES THAT HALF OF THE NUMBERS ARE ON THIS SIDE, AND HALF OF THE NUMBERS ARE ON THIS SIDE WHEN YOU DO A MEDIAN.

AND SO THE MEDIAN OF 3.91% WAS CHOSEN.

UH, AS I MENTIONED EARLIER, UH, ELIGIBLE PROJECT COSTS, THEY ARE SPECIFICALLY LAID OUT IN THE TEXAS LOCAL GOVERNMENT CODE SECTION 3 95 OF WHAT YOU CAN'T INCLUDE.

BASICALLY IT'S ANY PROJECTS THAT OCCUR IN THE FIRST 10 YEARS OF THE PLANNING PERIOD.

ANYTHING FROM 10 YEARS ON YOU CANNOT INCLUDE.

IT HAS TO OCCUR IN THE NEXT 10 YEARS.

AND YOU HAVE TO DO A UTILIZATION PERCENTAGE AS WELL.

WHAT PERCENTAGE? SO IF YOU HAVE A PROJECT THAT YOU'RE BUILDING IN 2030, BUT YOU KNOW THAT ADDITIONAL GROWTH IS GONNA OCCUR OUT TO 2050, YOU WANT TO MAKE SURE THAT YOU SIZE THAT PROJECT TO OCCUR OUT TO 2050, EVEN THOUGH YOU'RE BUILDING IT FOR THE 2030 PLANNING PERIOD.

AND SO YOU NEED TO ACCOUNT FOR THAT UTILIZATION.

HOW MUCH ARE WE GONNA USE THAT PROJECT BY 2030? AND SO WE DID THAT FOR ALL THE PROJECTS AND THAT UTILIZATION, UH, PERCENTAGES, UH, SHOWN BY THOSE TWO EQUATIONS.

THERE, THERE ARE A COUPLE OF UNIQUE CASES WHERE THERE, BECAUSE OF A FUTURE PROJECT, THE 2030 FLOW RATE WOULD ACTUALLY BE LESS IN 2050.

AND SO, UM, JUST BECAUSE YOU WOULD HAVE A NEW PROJECT COME ONLINE, IT WOULD TAKE SOME OF THE CAPACITY OF THAT 2030 LINE.

AND SO WE USED THE 2030 AS THE PEAK, BUT THAT WAS JUST FOR A FEW UNIQUE CASES.

THIS IS AN EXAMPLE OF A PROJECT COST SHEET.

UM, I WON'T GO INTO TOO MUCH DETAIL.

THIS IS A, WHAT WE CALL A CUT SHEET IN, UH, ON OUR SIDE OF THE FENCE.

AND IT HAS BASICALLY A DESCRIPTION OF THE PROJECT, WHAT THE JUSTIFICATION FOR THIS PROJECT IS, UM, THE DIFFERENT ITEMS THAT WE ANTICIPATE THAT'S GOING TO GO INTO PLACE WITH, FOR EXAMPLE, ON THIS SPECIFIC, UH, INSTANCE, THE WATERLINE GATE VALVES, FIRE HYDRANTS, DIFFERENT CONNECTIONS IF YOU'RE REPLACING, UH, METERS OR ANYTHING LIKE THAT, UH, IF YOU'RE HAVING TO GO THROUGH A ROAD AND YOU'RE GONNA HAVE TO REPLACE SURFACE AND ALL THAT.

SO WE, WE USE THOSE COSTS THAT WE DEVELOPED THAT I TALKED ABOUT EARLIER, APPLIED THOSE TO EACH OF THOSE ITEMS. AND THEN WE HAVE A MOBILIZATION THAT GOES, ALSO GOES INTO EFFECT BECAUSE YOU HAVE THE CONTRACTOR HAS TO MOBILIZE AND MOVE OUT THERE, BRING EQUIPMENT, HIGHER EQUIPMENT EARLY, AND THEN IT, THE CONTINGENCY, THAT 30% CONTINGENCY I TALKED ABOUT.

AND THEN, UH, 3 95 ALSO ALLOWS YOU TO INCORPORATE THE, UH, CONSTRUCTION SERVICES AND PROFESSIONAL SERVICES THAT YOU MAY, UH, INCUR FOR DESIGNING THE LINE OR IF YOU'RE HAVING TO GET EASEMENTS, THINGS LIKE THAT.

THEY ALSO ALLOW YOU TO INCLUDE THAT INTO THE COST.

SO I'LL, UH, TRY NOT TO BORE EVERYBODY TO TEARS TOO MUCH WITH GOING TOO MUCH INTO DETAIL ON THIS, BUT UM, THESE ARE NEAR TERM.

SO THERE'S BOTH WATER AND SEWER.

THERE ARE NEAR TERM PROJECTS.

THOSE ARE PROJECTS THAT ARE ANTICIPATED TO BE NEEDED FOR CURRENT SYSTEM IMPROVEMENTS.

WE NEED TO SOLVE A PROBLEM THAT'S OCCURRING WITH THE SYSTEM RIGHT NOW.

BUT

[00:30:01]

AND SO WE WANTED TO MAKE SURE THAT THOSE WERE CAPTURED IN THE IMPACT FEE.

AND SO YOU COULD SEE ON THIS SPECIFIC CASE, THERE'S THREE PROJECTS THAT HAVE GROWTH POTENTIAL AND THOSE THAT IT'S GONNA BE USED BY THE YEAR 2030.

AND SO IN THE IMPACT FEE ELIGIBLE PORTION FOR THESE NEAR TERM PROJECTS, THESE, AGAIN, THESE ARE NOT THE 10 YEAR HORIZON, THESE ARE THE, THE NEAR FUTURE PROJECTS IS ROUGHLY ONE AND A HALF MILLION DOLLARS.

UH, MOVING ON TO THE 10 YEAR HORIZON, WHAT WE CALL THE 2030 PRO THE PROJECTS, THIS IS THE, OUT FROM THE 10 YEAR, UM, ALL THESE PROJECTS HAVE SOME UTILIZATION RATE BECAUSE THEY'RE GONNA BE USED IN THE 10 YEAR HORIZON BY 2030.

SO THESE ALL ADD UP TO ALL THESE DIFFERENT PROJECTS ADD UP TO APPROXIMATELY $64.5 MILLION THAT ARE IMPACT FEE ELIGIBLE.

AND, UH, THESE ARE THE 2050, UH, PROJECT COSTS.

AND THESE ARE NOT ELIGIBLE BECAUSE THEY'RE OUTSIDE OF THAT 10 YEAR WINDOW, BUT THEY'RE STILL NECESSARY FOR FUTURE BUILD OUT AND FUTURE DEVELOP, UH, ANTICIPATED FUTURE GROWTH.

NOW THESE ARE THE NEAR TERM, UH, WASTEWATER PROJECTS ON THESE.

THERE WAS A FEW MORE, FEW MORE OF THESE THAT WERE IMPACT FEE ELIGIBLE JUST BECAUSE OF THE NATURE OF GRAVITY SEWER LINES YOU HAVE, IT DOESN'T TAKE MUCH, YOU KNOW, YOU CAN GO FROM A 12 INCH TO 15 INCH AND YOU HAVE SIGNIFICANT CAPACITY INCREASE.

SO THERE'S ALWAYS A LITTLE MORE POTENTIAL FOR GROWTH IN SEWER LINES THAN THERE IS IN WATER LINES.

WATER LINES ARE USUALLY SPECIFICALLY DESIGNED, AND SO THERE'S A LITTLE MORE AVAILABLE FOR THE NEAR TERM PROJECTS.

UH, 21.1 OR $21.2 MILLION ROUGHLY.

AND HERE'S THE 20, THE 10 YEAR HORIZON, UH, WASTEWATER PROJECTS AS YOU CAN.

AS YOU CAN SEE THERE'S A PRETTY BIG LIST, BUT THE, UM, UH, GROWTH PROJECTS AND THEN THE SYSTEM IMPROVEMENT PROJECTS ALL TOTAL OUT TO ABOUT 23 AND A HALF MILLION DOLLARS THAT IS IMPACT FEE ELIGIBLE.

AND THEN AGAIN, THE 2050 PROJECTS THAT ARE NOT IMPACT FEE ELIGIBLE FOR, FOR INCLUSION IN THE IMPACT FEE CALCULATION.

SO A LONG, UH, DEFINITION HERE, BUT BASICALLY YOU WANT TO HAVE SOME STANDARD UNIT THAT YOU'RE COMPARING ALL OF YOUR DIFFERENT GROWTH THAT'S OCCURRING IN YOUR CITY TO, UH, LIVING UNIT EQUIVALENTS, ED, UH, EQUIVALENT DWELLING UNITS.

THERE'S MANY DIFFERENT WAYS TO CALL THIS, BUT BASICALLY IT'S TYPICALLY BOILED DOWN TO A, UH, BECAUSE MOST CITIES HAVE LOTS OF RESIDENTIAL SINGLE FAMILY HOMES, IT'S, THAT'S THE CONSIDERED THE EQUIVALENT THAT EVERYBODY BREAKS IT DOWN TO ALL THAT, UH, DEFINITION BASICALLY BREAKS THAT DOWN TOO.

SO WE, UH, DEFINED THAT ONE WATER LIVING UNIT EQUIVALENT IS EQUIVALENT EQUAL TO A TYPICAL RESIDENTIAL WATER METER.

SO AS YOU CAN SEE HERE, BASED UPON THE FLOWS THAT WE DID IN OUR MODELING AND, AND THE NUMBER OF LIVING UNIT EQUIVALENTS, A UH, LIVING UNIT EQUIVALENT FLOW RATE IS APPROXIMATELY 0.17 GALLONS PER MINUTE.

NOT GALLONS PER DAY, BUT GALLONS PER MINUTE PER LUE.

AND THEN WORKING THAT OUT, YOU WIND UP WITH A GROWTH IN THE RESIDENTIAL AND THE GROWTH IN THE OTHER OF JUST OVER 7,000, UH, GROWTH.

AND THEN, UM, THE WASTEWATER, BECAUSE YOU DON'T, YOU CAN METER WATER, BUT YOU CAN'T METER WASTEWATER.

YOU DON'T HAVE A FLOW METER OUTSIDE, YOU KNOW, CHECKING THE, THE SEWAGE THAT'S COMING OUT OF A HOME.

AND SO THERE HAS TO BE SOME WAY TO KIND OF ESTIMATE THAT AND KIND OF AN INDUSTRY STANDARD TO USE 70% OF THE WATER SO THAT THE OTHER 30% IS IRRIGATION IN ITEMS LIKE THAT.

AND SO THE, SO THAT THE 70% OF THE WATER L UES ASSUMED TO BE THE WASTEWATER LUE.

SO THAT MEANS THAT THE WATER LUE AS I MENTIONED WAS 0.17 GALLONS PER MINUTE.

THE WASTEWATER CALCULATES OUT TO ABOUT 0.119 GALLONS PER MINUTE, 70%.

AND SO YOU WIND UP WITH THE GROWTH OF JUST OVER, UH, 7,000 LU IN THE 10 YEAR HORIZON.

SO A LOT OF INFORMATION ON THIS SLIDE AS WELL, BUT IT ALL BOILS DOWN TO 3 95.

THE TEXAS LOCAL GOVERNMENT CODE CHAPTER 3 95 REQUIRES THAT ALL CITIES GIVE A CREDIT FOR HOW THE FUTURE GROWTH IS GOING TO PROVIDE TAXES AND SERVICE, UH, MONEY AND, YOU KNOW, PAYING WATER AND SEWER FEES AND ALL THAT.

SO YOU HAVE TO CREDIT THAT TO THAT GROWTH.

AND THERE'S TWO WAYS YOU CAN DO THAT.

YOU CAN GO THROUGH AND LOOK AT HOW MUCH ANTICIPATED ADOR TAX AND HOW MUCH ANTICIPATED UTILITY SERVICE REVENUES YOU'RE GOING TO GET FROM THAT ANTICIPATED GROWTH.

OR YOU CAN JUST TAKE A FLAT CUT, YOUR MAXIMUM IMPACT FEE IN HALF AND THAT'S WHAT YOU GET THE CITY ELECTED WITH THEIR FINANCIAL SERVANT, UH, FINANCIAL CONSULTANT OF WAL DAN FINANCIAL SERVICES.

AND THIS IS THEIR CREDITS THAT THEY CAME UP WITH, SO SIGNIFICANTLY LESS THAN 50%.

SO IT ALLOWS MORE OF THE, UH, RATE TO BE APPLIED TO THE IMPACT FEE.

SO HERE'S THE NEWS THAT EVERYBODY'S LOOKING FORWARD TO.

SO, UH, LOOKING AT THE IMPACT FEE ELIGIBLE COST FOR THE WATER IMPACT FEES, $65.9 MILLION, SUBTRACT

[00:35:01]

DIVIDE THAT BY THE GROWTH IN LUE, YOU WIND UP WITH A MAXIMUM ALLOWABLE IMPACT FEE OF $8,814.

THE SAME METHODOLOGIES USED FOR THE WASTEWATER IMPACT FEE AND YOU WIND UP WITH A, A MAXIMUM ALLOWABLE WASTEWATER IMPACT FEE OF $5,556.

UM, AS, UH, PART OF OUR COORDINATION WITH THE CITY, WE ALSO LOOKED AT IF WE WERE TO SIZE THOSE LU BY METER.

'CAUSE THAT'S TYPICALLY HOW YOU, UH, YOU THE, YOU'RE GONNA HAVE A DEVELOPER COME IN, THEY'RE GONNA BE LOOKING FOR A CERTAIN METER SIZE AND THEY'RE GONNA PROVIDE YOU WHAT THEY ANTICIPATE THEIR METER SIZE IS GOING TO BE FOR THEIR DEVELOPMENT.

AND THIS IS WHAT YOU WOULD EQUIVALENTS FOR HOW L LUS CAN ALSO BE, UM, EQUIVALENTS IN METER SIZES.

AND THIS WOULD BE THE ROUGH COST IF BASED UPON THE L LUE OF THE FIVE EIGHTHS INCH METER IS A, UH, EXPECTED TO BE THE TYPICAL RESIDENTIAL METER.

SO THAT WOULD BE YOUR ONE LUE.

SO A QUICK LOOK AT THE LOCAL IMPACT FEE COMPARISON.

SO THE CURRENT IMPACT FEES FOR SHIRTS IS THE SECOND FROM THE BOTTOM.

IT'S NOT A RACE, IT'S NOT TO SEE WHO'S THE MOST EXPENSIVE, BUT IT JUST SHOWS CURRENTLY WHERE YOU SIT IN COMPARISON TO YOUR LOCAL GEOGRAPHIC AREA AND THE, YOU KNOW, SAWS IN AUSTIN AND BERNIE AND SIMILAR AREAS IN THIS AREA.

AND THE PROPOSED ONES ARE MORE TOWARDS THE MIDDLE OF THE PACK.

AND SO, YOU KNOW, UH, NOT NECESSARILY A BAD PLACE TO BE IN THE MIDDLE OF THE PACK.

AND I THINK THIS IS A, OKAY, THANKS LEE.

OKAY.

SO, UM, LOOKING AT, UH, WHAT YOU WANNA DO WITH THESE NUMBERS.

UM, SO THE MAXIMUM FEES ARE AS CALCULATED IF YOU ACCEPT THE LAND USE ASSUMPTIONS AND THE CAPITAL IMPROVEMENT PLAN THAT'S BEEN, UM, PUT TOGETHER THE CALCULATION IS, UH, OBJECTIVE AS FAR AS, UM, THE MAXIMUM ALLOWABLE AMOUNT THAT YOU COULD CHARGE.

UM, SO YOU COULD DECIDE TO SIMPLY ADOPT THOSE MAXIMUM FEES OR YOU COULD LOOK AT A PERCENTAGE OF THE FEES.

UM, I WILL POINT OUT WE HAD, UM, DAN JACKSON AND JAMES WALTERS LOOK AT, OKAY, IF WE DIDN'T CHARGE THE MAXIMUM FEES AND WE STILL WANTED TO DO THE SAME PROJECTS, WHO WOULD PAY FOR THAT? UH, IT WOULD, IT WOULD BE THE RATE PAYERS AND THE, AND THE REST OF THE CITIZENS OF SHIRTS.

SO, UM, WHAT THEY CAME UP WITH WAS THAT A 10% REDUCTION IN THE, FROM THE MAXIMUM FEE WOULD REQUIRE APPROXIMATELY A 1% INCREASE IN RATES FOR EVERYONE IN THE CITY VERSUS THE, UM, FEE BEING PAID BY THE NEW DEVELOPERS.

SO, UH, WHEN WE WENT TO THE CIAC, THE CAPITAL IMPROVEMENT ADVISORY COMMISSION, UM, THEY DEBATED THIS, UM, THEY DID FEEL THAT THERE SHOULD BE A GRACE PERIOD, THEY DID NOT RECOMMEND A PARTICULAR GRACE PERIOD.

UM, STAFF IS RECOMMENDING JULY 1ST, UM, 2025.

SO IN OTHER WORDS, THE FEES WOULD REMAIN AS THEY ARE UNTIL THAT POINT.

SO IT GIVES FOLKS TIME TO, UH, SORT OF PREPARE FOR IT IF YOU'D LIKE TO LOOK AT A, A DIFFERENT DATE EITHER SOONER OR LATER.

THAT'S CERTAINLY, UM, UP TO YOU GUYS.

UH, WHAT, UM, CIAC DID RECOMMEND IS THE PHASE IN OF THE RATE AS, UM, SHOWN ON THIS SLIDE.

SO DURING YEAR ONE, WHENEVER THAT DATE STARTS, WHETHER IT'S JULY 1ST OR OCTOBER 1ST, DURING THE FIRST YEAR, AFTER THAT PERIOD OF TIME, UH, WE WOULD RAISE THE RATES FROM WHAT THEY CURRENTLY ARE TO 50% OF THE MAXIMUM FOR WATER AND FOR WASTEWATER.

DURING THE SECOND YEAR OF IMPLEMENTATION, IT WOULD GO UP TO 75% OF THE MAXIMUM AND BY YEAR THREE, UH, BE SET AT A HUNDRED PERCENT OF THE MAXIMUM.

UM, REMEMBER THE RATES DO GET ASSESSED AT THE TIME OF RECORDATION OF THE FINAL PLAT.

AND SO IF A PLAT IS APPROVED AT ANY TIME AFTER THIS NEW, UM, IMPACT FEE IS SET, THE MAXIMUM RATE GOVERNS WHEN SOMEONE PULLS A BUILDING PERMIT, THEY'RE CHARGED THE RATE AT THE TIME.

SO IF A PLAT IS APPROVED IN, UH, THIS SEPTEMBER AND SOMEONE COMES IN DURING YEAR TWO, THEY WOULD JUST, THEY WOULD PAY THE 75% OF THE MAXIMUM IF THAT'S WHAT YOU CHOSE TO DO.

UM, SO WE CAN ANSWER OTHER QUESTIONS, BUT, UM, BUT

[00:40:01]

OF COURSE, YOU'RE WELCOME TO CHOOSE A DIFFERENT PHASE IN.

UM, BUT THAT WAS WHAT WAS RECOMMENDED.

THIS IS JUST A QUICK LOOK AT THE SCHEDULE AND WHERE WE ARE IN THE SCHEDULE.

UM, WE'VE PROCEEDED THROUGH, WE'RE NOW AT MARCH 18TH FOR THE FIRST COUNSEL HEARING OF, AND THEN WE WILL HAVE ONE SUBSEQUENT HEARING ON APRIL 1ST TWO FOR THE ADOPTION.

SO YEAH, SO TO CLARIFY ON THAT, WE'LL BRING NEXT, AT THE NEXT MEETING ON APRIL 1ST, UM, WE'LL HAVE ANOTHER PUBLIC HEARING AND THAT WILL BE FOR YOU ALL TO FORMALLY ADOPT THE LAND USE AMENDMENTS, THE CIP AND THE IMPACT FEES.

SO HOPEFULLY YOU'LL GET A GOOD, UM, FEELING THIS EVENING ON WHICH WAY YOU WANNA GO WITH THE FEES, UH, AND THE ANY PHASE IN SCHEDULE.

UH, AND THEN WE'LL ALSO BRING THE, UM, ORDINANCE THAT WILL ACTUALLY PUT THAT IN, UH, INTO CODE.