MINUTES REGULAR CALLED MEETING HEATH CITY COUNCIL TUESDAY, SEPTEMBER 12, 2023 at 6:30 PM  ATTENDING: KELSON ELAM, MAYOR  PAULRUFFO, MAYOR: PROTEM SHARON CALDWELL RICH KRAUSE DONNA ROLATER BRENT WEAVER JIM CHESTER  ABSENT:  Mayor Kelson Elam called to order the Regular meeting at 6:30 p.m. Councilwoman Donna Rolater  delivered the Invocation and led the Pledge of Allegiance.  2. Public Comment 3. Proclamations  No one signed up to speak ati the open forum.  Mayor Elam read aloud a proclamation proclaiming September 171 through September 23, 2023 as Constitution Week in the City of Heath and asked all Heath citizens to reaffirm the ideals of the Framers of the Constitution. Becky Burkett, Chaplain for the Rockwall Chapter of the National Society of the Daughters of the. American Revolution was present to accept the proclamation. 4.a Action Regarding the Minutes of the. August 16 Work Session and August 22, 2023 Regular 4.b Action Regarding a Resolution Amending the Investment Policy: for Public Funds as. Adopted by Resolution 010322 and last Amended by Resolution 230912A. (J.Ayers) 4.c Action Regarding a Resolution for Alternate Water Supply Study. (M. Holzapfel) 4.d Action Regarding al Resolution for an Operational Manual for Pump Station. (M.Holzapfel) MOTION TO REMOVE ITEMS 4.c and 4.d FROM CONSENT AGENDA TO ACT ON INDIVIDUALLY AND TO APPROVE CONSENT AGENDA, ITEMS 4.a AND 4.b REGARDING MINUTES ANDI RESOLVTIONNO.33e9BAINVISTMENT POLICY.  4. Consent Agenda  Meeting.  MOTION MADE: SECONDED: APPROVED: ABSTAINED: ABSENT:  RUFFO WEAVER CHESTER  PASSED FOURTOZERO (one absent and two abstained) CALDWELL, KRAUSE (absent at the August 22nd meeting)  4.c Action Regarding a Resolution for. Alternate Water. Supply Study.  Director of Public Works Matt Holzapfel stated that this Resolution is to approve a contract with Freeman-Millican, Inc. to conduct an Engineering Study for Alternate Water Supplies in the Amount of $97,500.00 and authorize the mayor to execute the subject contract on behalf of the City of Heath. This item is being removed from Consent Agenda to change two clauses in the contract: in Section 4-5Total Fee, Replace words "Lump Sum" with "Not to Exceed"a and in Section 6.11 Governing Law, replace word "Dallas County" with word "Rockwall County". Holzapfel also clarified that the contract will be executed by the Mayor on behalf oft the City of Heath. Along with MOTION: APPROVE RESOLUTION NO. 230912B REGARDING ENGINEERING  thes stated changes, staff recommends approval oft the Resolution. STUDYFORALTERNATE WATERSUPPLIES.  City Council Minutes - September 12, 2023  Pagelof4    MOTION MADE: SECONDED: APPROVED: ABSENT:  MAYOR: ELAM CALDWELL CHESTER  PASSED UNANIMOUSLY BY THOSE PRESENT  4.d Action Regarding a Resolution for an Operational Manual for Pump Station. Director of Public Works Matt Holzapfel stated that this item is also removed from Consent agenda make the same changes. Change in Section 4.5 Total Fee, Replace words "Lump Sum" with "Notto Exceed" and change in Section 6.11 Governing Law, replace word "Dallas County" with word "Rockwall County" and clarification that the contract will be executed byt the Mayor on behalfofthe MOTION: APPROVE RESOLUTION NO. 230912E REGARDING OPERATIONS AND MAINTENANCE MANUALS FOR CRITICAL WATER INFRASTRUCTURE.  City of Heath.' " Staff recommends approval oft the Resolution.  MOTION MADE: SECONDED: APPROVED: ABSENT:  MAYOR ELAM RUFFO CHESTER  PASSEDUNANINOUSLY BYTHOSE PRESENT  5.a Discuss and Consider. Adoption ofal Resolution Directing the Publication ofNotice of Director of Finance, Jay. Ayers stated that this item is for the approval ofa Resolution regarding the intention to issue Certificates of Obligation for major infrastructure projects related to new Public Safety facility, the new Public Works facility and the park improvements at Towne Center Park. Jim Sabonis, Managing Director, Hilltop Securities and City of Heath's bond counsel was present and provided aj presentation regarding the Plan of Finance detailing the events related to completing this debt issuance. Debt service payments willl bei made: from propertyt tax revenue (debt rate) and contributions from Heath Municipal Benefits Corporation and this will have a minimal impact on the debt rate over thel life oft the Certificates of Obligation debti issuance. Asa precursor to the issuance of the Certificates of Obligation, under LGC Section 271.049, the issuer publishes notice of its intention to issue ef the certificates. The proposed Capital Improvement Program includes Towne Park $12,250,000; Public Works facility $6,250,000; and Pubic Safety facility $15,000,000. HMBC to contribute $3,000,000 plus an annual contribution of approximately $475,000. Netj projectcostdebtf. funding $30,500,000. Sabonis alsoj providedap proposed schedule ofevents leading up to the closing of the Certificates of Obligation on Wednesday, December 27, 2023. Mayor Elam stated that this was al long term plan and wel havel been saving for this foralong time along with the bond will be paid by HMBC on an annual basis. The bond will allow us to complete the projects in their entirely and not inj parts. Councilman Weaver echoed the Mayor's comments stating that these] projects are: needed and thej process has been] long and meticulousand our conservative practices over the past several years have allowed us to be in a position to take MOTION: IMOVETO. ADOPT RESOLUTION NO. 230912D REGARDING DIRECTING THE PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF  Intention to Issue Certificates of Obligation.  advantage oft that today. Staff recommends approval oft this Resolution.  OBLIGATION. MOTION MADE: SECONDED: APPROVED: ABSENT:  RUFFO KRAUSE Against: NONE CHESTER  ROLL CALL VOTE: For: WEAVER, RUFFO, ELAM, CALDWELL, KRAUSE, ROLATER  PASSED UNANIMOUSLY BY THOSE: PRESENT (6-0)  5.b Discussion and Action Regarding Resolution No. 230912B Ratifying the Property Tax  Increase Reflected ini the 2023-2024 City Fiscal Year Budget.  City Council Minutes September 12, 2023  Page 2of4    Mayor Elam stated that per the City Attorney, this item would be removed from tonight's agenda 5.c Discussion and consider action to approve. Resolution No. 30912Cachmowledging the proposed tax rate, no-new-revenue tax rate and voter approval for Fiscal Year 2023- 2024 (FY2024), calling for a public hearing, authorizing public notices, and voting on Director of Finance, Jay Ayers stated that this Resolution is to acknowledge the proposed tax rate and voter approval rate for Fiscal Year 2023-2024, calling for a public hearing, authorizing public notices, and voting oni the proposed taxi rate. The Public hearing will bel held on September 26, 2023 and publication of the Notice of the Public Hearing and Adoption Date, Time, and Location will be posted on the website to meet requirements under Property Tax Code Chapter 26. The proposed tax rate is 28.3714 cents per $100 of valuation and the rate represents a 0.7461 cent or 2.56% reduction when compared tol last year's tax rate of 29.1175 cents per $100 of valuation. The No-New-Revenue Tax Rate is thet tax ratei for the 20231 tax year that will raise the same amount of property tax revenue fori the City of Heath in both the 2022 tax year and the 2023 tax year. The Voter-Approval Tax Rate is the highest tax rate that the City of Heath may adopt without holding an election to seek voter approvalo lofthei rate. The current taxi ratei is $0.291175per: sioofasesadvaluation. State. legislative homestead exemption increased to $100,000. Mayor Elam reiterated that City taxes are approximately 19% oft the total taxes. Councilman Weaver clarified that our tax process is called the Equivalent Tax Rate and we take the revenue generated last year from existing properties, and as appraised values increase, we: reduce thei taxi rate by thes same percentage sO that thet taxes generated last year is the same as the taxes generated this year for existing properties.. Any additional taxes are strictly from growth, growth is paying fori itself. Wel havel been doing this for 5years and as appraisals go up our taxi ratel has decreased. When you factor in the new homestead exemption $100,000 from the state legislation, we will still adjust our tax rate sO that on aggregate, thej property taxes that you paid last year willl be what you] pay this year. We are not increasing taxes and we can only control the MOTION: IMOVE THAT THE CITY COUNCIL PROPOSE THE 2023 TAX RATE OF 28.3714 CENTS WITH A MAINTENANCE. AND OPERATIONS RATE OF 18.4795 CENTS AND INTEREST AND SINKING RATE OF 9.8919 CENTS PER $100 OF ASSESSED VALUATION. THISI RATEISLOWERTHANIASTYEARSTAXRATEBY0.7461 CENTS  and moved tot the Tuesday, September 26, 2023 meeting.  the proposed tax rate.  city taxes not the school or county taxes.  PER $100 OF. ASSESSED VALUATIONORADECREASE OF: 2.56%.  MOTION MADE: SECONDED: APPROVED: ABSENT:  CALDWELL ROLATER Against: NONE  ROLLCALL VOTE: For: WEAVER, RUFFO, ELAM, CALDWELL, KRAUSE, ROLATER.  PASSED UNANIMOUSLY BY THOSE PRESENT (6-0)  CHESTER  6.1 Mayor, Council and City Manager Reports  City Manager. Adams stated that thel breaki int the weather and we are: monitoring the water situation closely and hope is tol be out of Stage 2 Restrictions within the next two weeks and willj plan to stay in a sustained Stage 11 restriction year around which is what most cities in the metroplex are doing where you water twice a week for irrigation. Earlier in this meeting, Council approved an Engineering Study foralternate waters supplies and staffwilll bring additional water choices decision points tot the Council inj December. Councilman Weavers stated that water is just not a Cityof! Heath issue,i itisal Texas issue and across the Southwest. As cities around us grow, water becomes scarcer and this growth is far exceeding the ability of suppliers to produce water. NTMWD has limited water capacity and we are exploring options for alternate sources. Councilwoman Caldwell recommended xeriscape and more conducive grasses. Adams also stated that we are exploring moratorium options and will discuss this during closed session ati the Sept: 26th meeting and aj public hearing will be held before a future vote. Mayor announced that the 2023 TML Conference is in  Dallas next month and asked ifo council was interested in attending.  City Council Minutes September 12, 2023  Page3of4    7. Executive Session  At7:291 p.m., Mayor Elam recessed the meeting to. Executive Session (closed: meeting) stating thati in accordance with Texas Government Code Chapter 551, Subchapter D, the City Council recessed into Executive Session (closed meeting) to discuss the following: Section 551.071: Consultation with Attorney on a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this chapter, regarding: ()zoning and plattingstandards, Local Government Code: shot clock, andTrilogy final plat; (ii) Trilogy development in Melendon-Chisholm city limits and extraterritorial jurisdiction; (iii) dispute regarding the creation of Rockwall County MUD No. 10 involving the Trilogy development in Mclendon-Chisholm city limits and extraterritorial jurisdiction; (iv) annexations; and (v) change order from Ed Bell Construction on the Rabbit Ridge Road Project, Phase 2; Section 551.071: Consultation with Attorney regarding pending or contemplated litigation or settlement offer re: (i) City of Heath V. Moclendon-Chsho.m, Cause No. 1-22-1204; (in) City of Heath V. Texas Commission on Environmental Quality, TCEQ Internal Control No. D- 12302021-047 (iii) MCTrilogy Texas, LLC V. City of Heath, et al., Cause No. 3:22-cV-02154-D;: and (iv) acquisition of rights-of-way and easements for the Hubbard Drive Project; and Section 551.072: Deliberate thej purchase, exchange, lease, or value ofreal property re: Hubbard Drive Right At 9:01 p.m, Mayor Elam closed Executive Session and reconvened the meeting into open session  ofWay Acquisition.  stating that no action was taken ini the Executive Session. Mayor Elam adjourned the meeting at 9:01 p.m.  APPROVED: SIe KELSON. ELAM MAYOR  ATTEST:  NORMA DUNCAN Jo-Qpar CITY SECRETARY  A A  59  DE  City Council Minutes September 12, 2023  Page 4of4