MINUTES REGULAR CALLED MEETING HEATH CITYCOUNCIL TUESDAY, SEPTEMBER 14, 2021, at 6:30 p.m.  ATTENDING:  KELSON ELAM, MAYOR FRANK: NEW, MAYOR PROTEM JOHN BEAMAN DONNA: ROLATER PAUL: RUFFO BRENT WEAVER RICH KRAUSE  ABSENT:  Mayor Kelson Elam called to order the Regular meeting at 6:30 p.m., Councilwoman Rolater  delivered the Invocation and led the Pledge of Allegiance.  Public Comment  Margaret Davidson, 9 Halford Dr - stated that is Constitution Week and was present to speak about the Constitution and provided some interesting facts about the Constitution and its creation. 3a. Mayor Elam read aloud a Proclamation designating September 17 through 23, 2021 as Constitution Week and asked Heath citizens to reaffirm the ideals ef the Framers of the Constitution had in 1787 by vigilantly protecting the freedoms guaranteed to us through this guardian of our liberties. Present were Margaret Davidson, Chapter's Corresponding Secretary, and Becky Burkett, Chapter's Recording Secretary with the Chapter of the NSDAR National 3b. Mayor Elam read aloud a Proclamation designating September 15 through October 15, 2021, as Hispanic Heritage Month and encouraged all residents to observe this month. Present were. Peter Hancon, Vice President/Ireasurer, and April Ramirez, Council Member with Rockwall LULAC  Proclamations  Society Daughters ofthe American Revolution.  League ofUnited Latin American Citizens.  Consent Agenda  a. Action Regarding the Minutes ofthe August 24, 2021, Regular Meeting.  MOTION: APPROVE CONSENT AGENDA REGARDING THE AMENDED MINUTES  OF THE AUGUST 24, 2021 REGULAR: MEETING.  MOTION MADE: SECONDED: APPROVED: ABSTAINED: ABSENT:  NEW WEAVER MAYOR ELAM RICH: KRAUSE  PASSED UNANIMOUSLY BYTHOSE PRESENT  Department and Reports  a. Update Regarding Capital Improvement Program (CIP) Projects  Director of] Public Works Chuck' Todd provided an update on and answered questions regarding the status oft the Capital Improvement Program projects. Todd also provided a schedule of the status of b. Update Regarding Park Board, HMBC-HEDG, CMMD, Communications Committee, Rockwall  approved and funded projects.  County Planning Consortium, and Emergency Services Corporation.  Heath City Council. Minutes- August 24. 2021  Page 1of6    Board Liaison Suzanne Brooke provided an update of the August 16th Park Board meeting and stated that a joint meeting with the Park Board, EDC, and the Council is anticipated in the near future after EDC addresses funding of the Park Plan. The board also welcomed new members, Brent King, and Katie Wozniak. Councilman Weaver provided an update to August 19th HMBC/HEDC board meeting. The board welcomed new: members, Jim Chester and Scott Dodson, and elected Jason Saunders as Vice-President. The primary focus of the meeting was that the board elected to move forward with Phase Three of the Towne Center Master Plan. Consultant Kimley Horn recommended to move on with design project. There were some questions and concerns regarding the building heights at the EDC Meeting. Counciman Beaman provided an update toi the CMMD board meeting from late. August and stated that the next meeting is scheduled in October. The Bond issuance was approved. The signs with the QR code were ordered and recently delivered. We are excided to get the signs up sO the residents can easily scan the barcode and receive the CMMD information. Councilman Ruffo provided an update to the Communications Committee and stated a meeting will be scheduled soon. Mayor Pro Tem New provided an update to the Emergency Management announcing that after a lot of pushing for a countywide: medical officer coordinator/doctor whose primary focus would be to communicate with the State on behalf of the health and well-being of the citizens of Rockwall County, at tomorrow night's County Meeting, the County will seat a Committee that will draw up a job description and seek to find a full-time medical director. Regarding the Rockwall County Transportation Consortium, there will be a $150 million bond on the ballot in November and New will report with more information regarding the particulars of the bond. New also announced that The Heath Farmer's Market will start back up again on Oct 16 through Nov 12 and will have fantastic bands  after the market from 6-8 p.m. b. Update Regarding Heath Public Safety.  Chief Seery provided an update regarding the August 2021 activity report zones identifying the total incidents dispatched at 381 thati included 338 police calls for service, 21 fire for service, and 22 EMS calls for service. Seery also announced the retirement of Sergeant Brian Burton after 25 years ofs service and the promotion from Sergeant Keven Rowan to Captain and congratulated both. 6a. Discussion and Action Regarding an Ordinance Adopting a Fee Schedule for the City Willdan Group, Inc. conducted a rate study for the City that included various capital improvement funding scenarios ranging from $0 cash and $12M in debt to $12M in cash and $0 debt. The option of funding $12M in capital improvements using $4M in cash and $8M in debt offered the most flexibility while keeping rates lower over time. Based on this option the existing water rates do not change in FY 2022. Director of Finance Laurie Mays stated that the Water and Sewer Rates are changing as follows: Sewer will now be based on winter averaging, which means the customer's monthly bill throughout the year will be based on the average amount of water consumed during the months of November, December and January. The fee has a base rate of $46.00 plus a volume rate of $4.89 per 1,000 gallons. The monthly bill is fixed for 12 months and will be adjusted annually to reflect the most current rates and average consumption. Base water rates will not change this year and neither will volume rates at the current ranges. The City has added two new ranges to encourage water conservation. The: new ranges are 50,001 to 100,000 gallons and greater than 100,000 gallons. Community Development recommended four changes to the fee schedule. Two new fees include a Replace Permit Pack fee of $25 and a $100 fee for Temporary Sales/Construction Trailer permit fee. Two existing fees were increased. The Commercial Minimum Permit fee went from $50 to $100 and the Certificate of Occupancy fee increased from $50 to $75. Counciman Weaver clarified that the most exciting change would be the winter averaging fort the sewer costs. Historically, Heath has always been on ai flat sewer rate which means ifyou are light consumer, you would pay the same rate as a heavy consumer. The new change is effectively proportional as to what you use. Half of the residents will see a savings. Mayor Elam thanked the staff and stated that after many discussions, we did some long-term good. PUBLIC HEARING to receive comments regarding the request.  fori the Fiscal Year October 1, 2021, through September 30, 2022.  Heath City Council Minutes - August 24. 2021  Page 20f6    Mayor Elam opened the public hearing at 7:11 p.m., and there being no one else to speak MOTION: APPROVE ORDINANCE NO. 210914A. ADOPTING AI FEE SCHEDULE FOR THECITYFOR FISCAL YEAR OCTOBER 1, 2021 THROUGH SEPTEMBER 30, 2022.  regarding the request, Mayor Elam closed the public hearing at 7:11 p.m.  MOTION MADE: SECONDED: APPROVED: ABSENT:  WEAVER ROLATER RICH KRAUSE  PASSED UNANIMOUSLY BYTHOSE PRESENT  6b. Discussion and Action Regarding an Ordinance Amending Ordinance 200909A Approving and Adopting a Budget for the City for the Fiscal Year October 1, 2020, through September 30, 2021, to. Amend. Adopted Expenditures ofthe Budget. Director of Finance Laurie Mays stated that this item was for amending the current Fiscal Year Budget. This process is to keep up in control of the legal level of budgetary at the department level. The total actual expenditures of each department must not exceed the total adopted budget for that department. The proposed amendments are necessary for compliance with our policy. In total, the 2021 Operating Budget for the General Fund remains unchanged. Increases to items that exceed the adopted budget are offset by decreases to items that are under budget. The Department of Public Safety and Finance Department required increases which were offset by a reduction ini the budget forl Legal Services and Park Maintenance and Landscaping. MOTION: APPROVE ORDINANCE NO. 210914B AMENDING THE BUDGET FOR THE FISCAL YEAR OCTOBER 1, 2020 THROUGH SEPTEMBER 30, 2021.  MOTION MADE: SECONDED: APPROVED: ABSENT:  NEW RUFFO RICH KRAUSE  PASSEDI UNANIMOUSLY BYTHOSE: PRESENT  6c. Discussion and Action Regarding an Ordinance Approving and Adopting a Budget for the City for the Fiscal Year October 1, 2021, through September 30, 2022; Providing that Expenditures for said Fiscal Year shall be made in accordance with Director of Finance Laurie Mays stated that the Council's budget philosophy is to provide the highest level of service at the greatest value. The City must operate in the most effective and efficient ways possible to accomplish this goal. As part of the City's budgeting philosophy and commitment to respect the Taxpayer's money, priorities in the budget process include: Cost Containment operating at high efficiency; Maintaining a stable and low property tax rate; Planning for the future of infrastructure and asset management; Accounting for high levels of quality ofl life; Maintaining healthy fund balances and reserves; and the hiring and retention of highly qualified city staff. The proposed General Fund Budget is based on an M&O tax rate of 22.3714 cents per $100 ofvaluation. This rate is 2.387 cents lower than the FY 2021 M&OTax Rate. Council proposed a reduction in the total tax rate, for the: fourth consecutive year while increasing services. Additions to the 2022 Budget include: funding for a Public Safety Officer; additional funding for street repairs; and increased funding for the pay-as-you-go program for capital expenditures. The pay-as- you-go program willl help reduce the amount of debt incurred by the City as well as interest expense. Three funds were established as part of the pay-as-you-go program: Fire Station Building Fund; Governmental Equipment Replacement Fund; and Drainage Fund. The Operating Budget decreased $11,500 from the prior year while pay-as-you-go funding increased $685,000. Debt Service decreased $141,600, which was partially offset by increases in personnel services. The budget for purchased water did not change since both the City's take-or-pay minimum and the cost per 1,000 gallons remained the same as the prior year. The budget for wastewater treatment decreased $7,800. Additions to the 2021 Budget include: funding for an additional utility maintenance position and funding for the pay-as-you-go program. The Governmental Equipment Replacement Fund budget includes a tractor mower and pickup truck for Parks; vehicle and  said Budget.  Heath City Council Minutes = August. 24. 2021  Page3of6    equipment for Public Safety; and pickup truck for Community Development. These purchases are based on the City's Equipment Replacement Schedule and are funded by transfers from the General Fund's available resources. The Utility Equipment Replacement Fund budget includes two pickup trucks for the water and wastewater departments. These purchases are based on the City's Equipment Replacement Schedule and are funded by transfers from the Utility Fund's available  resources.  PUBLIC. HEARING to receive comments regarding the request. regarding the request, Mayor Elam closed the publichearing at 7:20 p.m.  Mayor Elam opened the public hearing at 7:20 p.m., and there being no one else to speak MOTION: APPROVE ORDINANCE NO. 210914C ADOPTING A BUDGET FOR THE CITYFOR THE FISCAL YEAR OCTOBER: 1, 2021 THROUGH SEPTEMBER 30, 2022.  MOTION: MADE: SECONDED:  BEAMAN NEW  Councilman Weaver reiterated that the revenue generated with this budget is an increase over the revenue generated last year. But, iti is all attributed to growth of new properties that have appeared on the tax roll. There is a reduction of approximately $62,000 for existing properties. Existing property that is already on the tax roll will: realize a net reduction of taxes. No increase in taxes for existing properties has always been this council's goal and has been achieved for the fourth year in  aroll. Iapplaud the council and staff. ROLLO CALL' VOTE: APPROVED: ABSENT:  For: Against:  RUFFO, ROLATER, BEAMAN, MAYOR, NEW, WEAVER PASSED UNANIMOUSLY BYTHOSE PRESENT  NONE RICH KRAUSE  6d. Discussion and Action Regarding a Resolution Ratifying the Property Tax Increase Director of] Finance Laurie Mays stated that his budget will raise more revenue from property taxes than last year's budget by an amount of $156,300. The property tax revenue raised from new property added to the tax roll this year is $218,400. The proposed tax rate of 33.9307 cents per $100 of valuation is lower than the No-New-Revenue tax rate (35-7633 cents), lower than the Voter-Approval. tax rate (36.2292 cents), and lower than last year's tax rate (37.6569 cents). Adoption of a budget that will require raising more revenue from property taxes than in the previous year requires a separate vote of the governing body to ratify the property tax increase reflected ini the budget. A vote under subsection C of the Local Government Code Chapter 102.007 is in addition to and separate from the vote to adopt the budget or a vote to set the tax rate. Mayor Pro Tem New stated that the law requires specific wording anytime we raise one penny more than what it was last year. We have been working on this for the last several months. We are going to MOTION: IMOVETO RATIFYTHE PROPERTY TAX: INCREASE REFLECTED IN THE  Reflected in the 2021-2022 Fiscal Year Budget.  see an increase in growth every year as new houses are built. BUDGET. (RESOLUTION: NO. 210914A)  MOTION MADE: SECONDED: ROLL CALL VOTE: APPROVED:  MAYOR ELAM NEW  Councilman Ruffo clarified that we are, in fact lowering thet tax rate.  For: Against:  RUFFO, ROLATER, BEAMAN, MAYOR, NEW, WEAVER PASSED UNANIMOUSLYI BYTHOSE: PRESENT  NONE  Heath City Council Minutes - August 24.. 2021  Page 4of6    ABSENT:  RICH KRAUSE  6e. Discussion and Action Regarding an Ordinance Levying Ad Valorem Taxes for the Year 2021 (Fiscal Year 2022) at a rate of $0.339307 per One Hundred Dollars ($100.00) Assessed Valuation on all Taxable Property within the Corporate Limits of the City as of January 1, 2021; to Provide Revenues for the Payment of Current Expenses and to Provide an Interest and Sinking Fund on all Outstanding Debt of the City; Providing for Due and Delinquent Dates together with Penalties and Director of Finance Laurie Mays stated that the City is proposing a tax rate of 33.9307 cents per $100 of valuation, which is 3-7262 cents reduction rate from last year's rate and is lower than both the NNR rate and the Voter Approval rate. This is a 9.90 percentage reduction from prior year. The change from the 2018 rate is 7.8 cents reduction. The M&0 and I&S tax rates are 22.3714 cents and 11.5593 cents per $100 ofvaluation, respectively. Since 2017-2018 Council has lowered the tax rate each year for a total reduction of 7.8004 cents. Councilman Weaver commented that given that many residents are homestead exempted, which means that your taxes cannot increase by more than 10% per year, and we are reducing the rate by nearly 10%t this year, many will realize no increase at all and many will see a decrease. Again, that has always been this council's goal. We are thrilled to have achieved our goal for the fourth year in a row. Councilwoman Rolater clarified that the city taxes are only a small part oft the resident's total tax MOTION: APPROVE ORDINANCE NO. 210914D REGARDING LEVYING AD VALOREM TAXES FOR THE YEAR 2021 (FISCAL YEAR 2022) AT A RATE OF $0.339307 PER ONE HUNDRED DOLLARS ($100.00) ASSESSED VALUATION ON ALLTAXABLE PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY. ASOF  Interest.  bill.  JANUARY1, 2021. MOTION. MADE: SECONDED: ROLLCALL VOTE: APPROVED: ABSENT:  RUFFO ROLATER NONE RICH KRAUSE  For: Against:  RUFFO, ROLATER, BEAMAN, MAYOR, NEW, WEAVER PASSED UNANIMOUSLY BY' THOSE: PRESENT  7.0 Council/City Manager Comments  Assistant City Manager Kevin Lasher stated that the budget is complete and gave a shout-out to Director of Finance Laurie Mays, the Finance department, staff and City Manager Aretha Adams for an impressive budget. Lasher also stated that the TML Conference is held in Houston this year from October 6 to 8th and asked if anyone would be interested in attending. The Scenic City Certification Program has reinstated the City of Heath's Gold standard, and Heath will be recognized at the' TML Conference. Heath was certified Gold standard in 2011, re-certified in 2016 and 2021. Staff liaison to the Park Board, Suzanne Brooke, proudly stated that the City of Heath was selected to appear on the front page of the Scenic City website scemicityertincationorg, This  isg great P.R. for our City. 8. Executive Session  At 7:35 p.m., Mayor Kelson Elam recessed the meeting to Executive Session (closed meeting). 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 the attorney regarding pending or contemplated litigation, or a settlement offer; re: Cause No. 1-21-  0771: South Ridge Group, LLC vs City of] Heath, Texas.  Heath City Council Minutes = August 24.. 2021  Page5of6    At 9:21 p.m., Mayor Kelson Elam closed Executive Session and reconvened the meeting into open session. Elam stated no action was taken in the Executive Session, and noi further actions would be  needed.  Mayor Elam adjourned the meeting at 9:22 p.m.  APPROVED: 5052 KELSONI ELAM MAYOR  ATTEST:  Tende NORMA DUNCAN CITYSECRETARY  Heath City Council Minutes- - August 24.. 2021  Page 60f6