STATE OF TEXAS COUNTY OF ORANGE  ) )  August 20, 2024  BE IT REMEMBERED THAT a Special Call Meeting of the Orange City Council of the City of Orange, Orange County, Texas, was held in the Library Auditorium (City Council Chambers) on  Tuesday, August 20, 2024. COUNCIL MEMBERS PRESENT:  Larry Spears Jr. Paul Burch Matt Chandler Brad Childs Terrie T. Salter Mary McKenna Caroline Hennigan None  Mayor Mayor Pro-Tem Council Member Council Member Council Member Council Member Council Member  COUNCIL MEMBERS ABSENT: STAFF MEMBERS PRESENT:  Michael Kunst Jay Trahan Patricia Anderson Jennifer Krummel Cheryl Zeto Lane Martin Kelvin Knauf Adam Jack Brenna Manasco John Bilbo Mike Zeto Jake Travis Alison Clary Madison Floyd Gavin Victoria Mikel Marcantel James Lawrence Tyler Glover Thomas Glover James Louvier Ramiro Vazquez  City Manager Assistant City Manager, Director of Economic Development City Secretary Deputy City Secretary Director of Finance Chief of Police Director of Planning & Community Development Director of Public Works Library Director Fire Chief CIS Manager ItTechnician Communications and Marketing Coordinator Deputy Director of Public Works Water/Sewer Manager Street/Drainage Manager Public Service Manager Craft Maintenance Worker/Electrician Sr. Maintenance Worker Customer Service Coordinator Sr. Maintenance Worker    Special Call Meeting  2  August 20, 2024  Marvin Benoit Isaac Henry Divon Williams Hillary Gravett Guy Goodson  Building Official Police Baliff  STAFF MEMBERS ABSENT:  Deputy Director of Planning and Community Development Assistant EDC Director City Attorney  Mayor Spears called the meeting to order at 5:30 p.m. Mayor Spears led the Invocation and the Pledge of Allegiance.  MOTIONFINDINGTHATTHE, ADVANCE POSTING. ANDNOTICE REQUIREMENTS OF ARTICLE 8.1200 OF THE CODE OF ORDINANCES OF THE CITY OF ORANGE, TEXAS HAVE BEEN MET IN RELATION TO ALL MINUTES AND PENDING ORDINANCES AND RESOLUTIONS ON THIS AGENDA: AND THAT THE READING OF SUCH ITEMS BE CONFINED TO THE CAPTIONS AS Council Member Chandler moved to approve the motion. Second to the motion was made by  ARE AGREED UPON BY THE ORDINANCES AND RESOLUTIONS. Council Member Childs which carried with the following vote:  COUNCIL MEMBERS VOTING AYE:  Mayor Spears, Mayor Pro-Tem Burch, Council Member Childs, Council Member Chandler, Council Member Salter, Council Member McKenna and  Council Member Hennigan  COUNCIL MEMBERS VOTING NO: CITIZEN COMMENTS  None  Timmy Owens, 2206V W. Sunset Drive, advised hei is concerned about the discount Governor. Abbott gave ont taxes for landowners, condition of residential roads and electrical poles that are in need of repair. He advised he would like to see some type of mentorship program for young people.  BUDGET WORKSHOP  DISCUSS PROPOSED FISCAL YEAR 2025 BUDGET.  Mr. Kunst advised he gave Council the proposed budget for Fiscal Year 2025 last week. He thanked Ms. Clary for helping prepare the PowerPoint Presentation that he is going to present Mr. Kunst advised the meeting tonight is to discuss the proposed budget for Fiscal Year 2025. He  tonight.    Special Call Meeting  3  August 20, 2024  presented al PowerPoint Presentation: tol highlight different components oft the proposed budget. He advised tonight's meeting will concentrate on the General Fund and the Water and Sewer Fund. A copy of this presentation is included in and being made a part of these minutes.  Mr. Kunst advised the budget consists of a variety of funds:  General Fund Debt Service Capital Projects Water and Sewer Fund  Water and Sewer Bond Construction Water and Sewer Capital Improvement Project Sanitation and Street Sweeping Special Revenue Revenues Expenditures Reserves  *  Mr. Kunst advised there are three components of the Budget:  He advised Revenues equal Expenditures.  Mr. Kunst advised the General Fund Revenue consists of The Big Three:  Sales Tax- found in Other Taxes IDA Revenue - Payment in Lieu of Taxes Property Tax Ad' Valorem  He advised the City is down $1,050,000 in sales tax from last year and also down $1,825,401 in Mr. Kunst briefed Council on property values and tax rates. He advised the Orange County Appraisal District determines the property values in Orange County, but they do not set thet taxrate. He advised: the total taxable value went down $2 million from last year, the average taxable homestead value went up from $132 million to $136 million and the average taxable homestead value increased from $132,8091 to $136,417. He advised in Fiscal Year 2025, the average City tax  payments in lieu of taxes from last year.  payer will pay $1,087.24 in City taxes.  Mr. Kunst advised the following General Fund Proposed Expenditures:  Personnel Supplies Maintenance/Services Capital Outlay Debt Services Police Fire Library Parks Code Enforcement Streets Drainage Animal Control  * *  Mr. Kunst briefed Council on what a homeowner gets for their tax dollars:  Planning and Community Development  *    Special Call Meeting  4  August 20, 2024  Mr. Kunst highlighted the General Fund Capital Outlay and Notable Expenditures:  MIS (IT) - SeeClickFix Library Books  Animal Control - Lease finance new truck, cat cage Police - Lease finance 4 new vehicles Fire - 1 Hurst Strong Arm hydraulic tool Code Enforcement Demolitions, mowing, inspection service, liens Building Services Rooftop. AC, Bellfield Community Center Street & Drainage Lease finance dump truck Across-the-board raise of 2% for all employees  Mr. Kunst advised the following regarding the General Fund:  No new positions No re-grading of any position Collective Bargaining Agreements  The City is in currently in negotiations with the Orange Municipal Police Association and the Orange Firefighters Association regarding the new  Mr. Kunst advised the City will receive a 4.3% decrease in BlueCross BlueShield cost. He advised combined with a "shift" in dependent contributions, the City projects a savings of approximately $183,877. He briefed Council on the cost and coverage of insurance for employees. Mr. Kunst advised the following regarding the General Fund Reserve:  Staff is proposing a balanced budget Industrial District Agreements expire in 2027 Middle of Hurricane Season Reserve Funds are for a one-time costs Capital Outlay $475,000 Operating Reserve - $13,637,335 Unassigned - $3,783,224  Fiscal Year 2025 Projected Ending Reserve - $17,895,558  Mayor Spears advised there willl be no new hires, no re-grades and no new positions. He advised ifsomeone quits, they will be replaced. He advised the City is making the cuts necessary to tread water and stay afloat. Mayor Spears advised he is hoping the International Paper property can be re-proposed. He also advised that Invista announced it will be in operation a little longer than  originally proposed.  Mr. Kunst advised the following regarding the Water & Sewer Fund:  Revenue User fees are the main source of revenue, property tax does not pay for Water and Sewer, Sanitation, or Street Sweeping Utility Bill - Consist of: Water, Sewer, Sanitation, Street Sweeper and Sales  tax  Mr. Kunst gave an example of a base water bill.  Mr. Kunst advised the following increases for Fiscal Year 2025:  Waste Management - Increase 6.5% by contract    Special Call Meeting  5  August 20, 2024  Monthly Increase $1.98 Water Only Increase 2% Monthly Base Increase $0.25 Add 1000 gallons Increase $0.03  Mr. Kunst briefed Council on several items that are paid for through the Water and Sewer Fund and  the Sanitation and Street Sweeper Fund.  Mr. Kunst advised the Total Operating Revenues are as follows:  Charges for Services Interest Other Revenue Inter-Fund Transfers Total Operating Revenues  $ 8,535,000 $ 211,900 $ 25,000 $ 222,122 $8,994,022 $2,804,989 $ - 370,560 $2,732,230 $1,112,502 $1,173,780 $ 800,000 $8,994,061  Mr. Kunst advised the Total Operating Expenditures are as follows:  Personnel Supplies Maintenance/Services Capital Outlay Debt Services Inter-Fund Transfer Total Operating Expenditures  Mr. Kunst advised when International Paper closed, the City had to find a new disposal source for materials picked up by the grapple truck. He advised International Paper provided its services for  free, and this was an unexpected additional expense for Fiscal Year 2024. Mr. Kunst advised the following regarding Capital Outlay:  Sewer Operations-Normal lifts stationr repairs, Traler-moumedngngresure FROM Reserve Fund - Sunset Park sewer system pipel bursting project part Water Operations - Hydro vacuum trailer with valve exerciser, Normal water  sewer. jet of GLO Grant line repairs  Meter Readers - Radio read meters  Mr. Kunst advised there will be a Public Hearing on Tuesday, September 3rd at 5:30 p.m. on the budget andi thei taxrate. He advised the proposed tax ratei for Fiscal Year 2025i is $0.7970/S100and the current tax rate is $0.7595/$100. He advised this is an increase of the current tax rate of Mayor Spears asked ift the General Fund Capital Outlays werei included in the proposed Fiscal Year Mayor Spears asked if the City could make additional purchases ift the sales tax revenue increased. Mayor Spears requested a "Wish List" of items the department heads requested, which were not included in the proposed budget. He also requested staff to make a "Push" to buy local.  $0.0375/$100.  2025 Budget. Mr. Kunst advised they were. Mr. Kunst advised that may be possible.    Special Call Meeting  6  August 20, 2024  Council Member Hennigan advised that if a citizen orders grocery pick-up at al location outside the City limits of Orange, but is delivered inside the Cityl limits of Orange, the sales taxi is credited to the Mr. Owens suggested hosting more events to bring in more revenue. Mayor Spears advised that Council asked all departments to make cuts in their departments and this included the events  City of Orange.  department. ADJOURNMENT  There being no further business before the Council, Council Member Salter moved to adjourn the meeting. Second to the motion was made by Council Member Childs which carried unanimously.  The meeting adjourned at 6:21 p.m.  Larry Spears,r,Myor  ATTEST: Patricia EL  City Secretary