MINUTES HEATH CITY COUNCIL BUDGET WORK SESSION  THURSDAY, AUGUST 15, 2024 at11:00 AM  ATTENDING: JEREMIAH MCCLURE, MAYOR  PAUL: RUFFO SHARON CALDWELL SCOTT! DODSON RICH KRAUSE, MAYORE PROTEM RYAN MOORMAN BRENT WEAVER  Mayor Jeremiah McClure called to order the Budget Work Session at 11:11 a.m.  Discuss Annual Budget for Fiscal Year 2024-2025.  City Manager Kevin Lasher stated that stafftoday's presentation would be a firmed-up budget based on the elements discussed at thej previous budget works session. Director of Finance. Jay Ayers began by stating that the objective would bet toi finalize the budgetary direction for the Fiscal Year 2025 for the City of Heath. The purpose would be to review the outcomes of previous budget workshops and incorporate any necessary adjustments; to ensure all budgetary decisions align with the City's financial goals and priorities; and toi finalize the proposed budget, tax rates, and funding allocations to be presented for public hearings and council approval. The items on today's agenda are the Summary of Previous Workshops and Decisions; the General Fund Property Tax Rate Review; Discussion of the Utility 10-Year Capital Plan (CIP); the Next Steps and Timeline for Final Budget Approval and the Final Recommendations & Questions for FY2025 Budget. Ayers provided a recap of the August gth budget workshop. General Fund - consideration of various tax rate options, including No-New-Revenue (NNR), Equivalent, Del Minimis, and' Voter Approval Rates and thei initial direction towards maintaining a Flat' Tax Rate VS. adopting the Voter Approval Rate. Utility Fund- discussion on water capital project initiatives that would impact water rates and thei review of capital projects and funding. Unresolved items were the final decision on' Tax Rates and whether to adopt the proposed flat rate or voter approval rate. City Council vote on the proposed tax rate in FY2025. Capital Improvements Projects - reviewa adjustments to thel Utility: 10-Year Capital Improvement Plan (CIP) to expedite water infrastructure and supply initiatives. General Fund: Property Tax Rate Review of the Tax Rates: No-New Revenue Tax Rate, Equivalent, De Minimis, Flat and Voter Approval and the Tax Rate Comparisons. Capital Improvement Plan, Water Project Short-Term and Long-Term Initiatives. Next Steps for Timeline for Budget Approval. Budget Calendar. Director of Public Works Bryan Creed provided estimations regarding road maintenance and recommendations on what the city needs to provide these services. The Council discussed the various tax rates and comparisons, and the majority. leaned toward the Flat tax rate VS. the De Minimis tax rate. To meet posting state requirements, the Council took a poll and went with the de Minimis tax rate. Voting for Ayers concluded the session with a brief presentation regarding the water project short-term and long-term initiatives stating that the FY 2023-2024 initiatives are to Resolve current litigation and reinforce relationships with NTMWD & Rockwall; Send information to Willdan to update the Utility Rate Study Analysis; ; Hilltop Security. Analysis for Debt Issuance: from the Utility Fund; Continuei the dialogue with RCH on the amount water available to the City; Complete the. Alternate Water Source Study; Add High Point SUD and wells to scope; Include confirmed water sources after litigation is resolved; Complete the 10-Year Capital Utility Plan; Replace SCADA - for water and seweri facilities; and Update water and sewer: impact fee study to recoup costs due to future growth. The FY 2024- 2025 initiatives are Drill Water Well #1 - Towne Center Park; Issue Bond for Financing Projects; Design Elevated Storage' Tank #3; and Design 3-MG Ground Storage' Tank #2 - Cityof] Rockwall. The FY2025-2026 initiatives are. Drill Well #2 - Fulton. Academy; Drill Well #3 - City ofl Rockwall Pump Station No. 1; Construct and Complete Elevated Storage' Tank #3; and Construct and Complete3 3-MG  the budget and tax: rate will be at the Sept: 10th council meeting.  Ground Storage Tank #2.  City Council Minutes - August 15, 2024 Budget Work Session  Page 1of2    Ayers closed the discussion: and announced that thei first reading and public hearing on1 the Taxl Rate, Municipal Fees and Rate Schedule and Budget iss scheduled September 10, 2024. The second City Council and final reading of an Ordinance to adopt the Budget by a record vote, first and final reading of an Ordinance to adopt the Tax Rate by a record vote, and first and final reading of the Ordinance to adopt Municipal Fees and Rate Schedule is scheduled September 24, 2024.  Mayor McClure adjourned the Work Session at 12:56] p.m.  APPROVED:  ATTEST,  Vanellen  NORMAI DUNCAN CITY SECRETARY  MAYOR  I  OF  59  ATEOF  City Council Minutes - August 15, 2024 Budget Work Session  Page 2of2