MINUTES REGULAR. JOINT MEETING  HEATH MUNICIPAL BENEFITS CORPORATION (HMBC) and HEATH ECONOMIC DEVELOPMENT CORPORATION (HEDC)  IUISDAYSEPTNBEKI9, 2023, 5:30 P.M.  ATTENDING:  CYNTHIAALLEN JIM CHESTER BRENTWEAVER MIKE ZILINSKAS  1. Acting President Cynthia Allen called the Heath Economic Development Corporation (HEDC) and Heath Municipal Benefits Corporation (HMBC) meeting to order at 5:40  p.m.  2. Public Comments:  There were: no public comments. 3. Items for Individual Consideration  3.a Discussion and. Action Regarding the Minutes ofthe July 18, 2023, Regular Quorum was not] present to take action on the minutes. Action will be moved to the next  Meeting. Board meeting.  3.b Council, Staffand Board Member Reports:  Councilman Weaver reported that Council passed the 2023-2024 annual budget at its September 26 meeting that was based on an effective tax rate a tax rate of $0.277493, which is 0.013682 cents lower than last year's tax rate of $0.291175 or 4.70%. This is the sixth consecutive year the City's tax rate has been lowered. Any increase in taxes collected comes from new development, while existing residents' City Manager Aretha Adams provided a water update, including the expectation ofc coming out of Stage 3 Water Restrictions this week and moving to ay year-round Water Conservation schedule that would allow watering with irrigation systems twice per week. She also said that a study was being conducted toi identify additional water sources and necessary infrastructure. The first report would be given at the December 12  funds collected have remained flat.  City Council meeting.  3.c Discussion and consider adoption of a resolution directing the publication ofnotice of Heath Municipal Benefits Corporation projects and notice of] publichearing; and Director of Finance Jay Ayers explained that ati the regular City Council meeting held on September: 12, 2023, the council approved Resolution No. 230912D authorizing the publication ofNotice of] Intention to issue Certificates of Obligation, Series 2023 fori financing major infrastructure projects (Public Safety facility, Public Works, and' Towne Center Park). With thej partnership oft the City Council and Heath Municipal Benefits Corporation, these projects would be able to be addressed with minimal impact to the debt rate portion oft the overall tax rate. Heath Municipal Benefits Corporation proposes al lump sum contribution of $3  Presentation Plan of] Finance.  September 19, 2023- - Heath Economic Development &. Municipal Benefits Corporation- Minutes  Page 1of3    million towards the construction of the Public Safety building and an annual payment of $473,925 on an annual basis for 20 years toj paya portion oft the costs oft the' Town Center Park project, including financing costs oft the City for certificates of obligation issued by the Cityt to The budget currently shows the impact of the contribution anticipated tol be made in Fiscal Year 2024. After the contribution is made, the fund balance ofthe HMBC will still be healthy. The contribution can be executed the Financing and Use. Agreement is approved by the HMBC. The question was asked ift these bonds would impact the City's ability to fund future water or infrastructure, and City Manager. Aretha Adams explained thati it would not. The City's bonding capacity for water/utilities falls under the utility fund and is separate from the general fund's bonding capacity. This project will not affect the City's ability toi issuel bonds for water and utilities projects when the time  fund such project.  comes. MOTION:  ADOPT RESOLUTION NO. 20230919CAUTHORIZINGTHE PUBLICATION OFI NOTICE OF INTENTIONTOISSUE CERTIFICATES OF OBLIGATION, SERIES 2023 FOR FINANCING MAJOR INFRASTRUCTURE PROJECTS UNANIMOUS4-01 BYA ALLTHOSE PRESENT  MOTION MADE: SECONDED: APPROVED:  ALLEN ZILINSKAS  3.d Discussion and. Action Regarding Fiscal Year October 1, 2023, through September 30, 2024, Budget and Providing that Expenditures for Said Fiscal Year Shall be Made in Assistant Director of Finance' Tara Plexico presented a final budget for FY: 2023-2024. There were: no significant changes, except for the incorporation of partnering with the Cityt to fund the construction oft the DPSa and Public Works Maintenance facilities, and the' Towne Center Park: renovation. There would still be $3,836,757 ending resources ini the HEDCbudget with $300,0001 identified for economic development  Accordance with Said Budget.  grants and projects.  MOTION: MOTIONMADE: SECONDED: APPROVED: MOTION: MOTION MADE: SECONDED: APPROVED:  ADOPT. HEATH ECONOMIC: DEVELOPMENT CORPORATION RESOLUTION: NO. HEDC-230919 FOR' THE 2023-2024 HEDC  ANNUAL BUDGET. ZILINSKAS CHESTER  UNANIMOUS. 4-01 BY. ALLTHOSE. PRESENT  ADOPTHEATHMUNICIPAL BENEFITS CORPORATION RESOLUTION NO. HMBC-230919 FOR' THE 2023-2024 HMBC  ANNUAL BUDGET. ALLEN CHIESTER  UNANIMOUS. 4 -01 BY4 ALLTHOSE PRESENT  September 19, 2023- - Heath Economic Development & Municipal Benefits Corporation- - Minutes  Page 2of3    4.  CONVENE EXECUTIVE SESSION  4a. At 6:08 p.m., Acting President Allen recessed the meeting to Executive Session (closed meeting) stating that in accordance with Texas Government Code Chapter 551, Subchapter D, the Boards oft the HMBC and the HEDC recessed into Executive Session (closed meeting) to discuss the following: $ 551.087: To discuss or deliberate regarding commercial or financial information that the HMBC and the HEDC have received from a business prospect that the HMBC and HEDC seek to have locate, stay, or expand int the CityofHeath and with which the HMBCandi HEDCare conducting economic development negotiations; and/or to deliberate the offer of a financial or other incentive to the business prospect  regarding: Project Reserve. 5. RE- CONVENE OPEN SESSION  At 6:14 p.m., Acting President Allen closed Executive Session and reconvened the meeting into open  session stating that no action was taken in the Executive Session.  6. ADJOURN  At6:15p.m., Acting President Allen adjourned the meeting.  APPROVED: JUSTIN SAUNDERS PRESIDENT  ATTEST: Bu SUZANNEI BROOKE BOARDLIAISON  badullla  September 19, 2023- Heath. Economic Development & Municipal. Benefits Corporation- - Minutes  Page3of3