ERTY  City Council Special Called Meeting MEETING MINUTES August 26, 2024, 6PM Council Chamber 2801 Ranch RD. 1869 Liberty Hill, Texas 78642  City Council Present: Crystal Mancilla Amanda Young Diane Williams Wade Ashley Jacquetta Thayer Council Members Absent: Michael Helbing, absent City StaffPresent: Paul Brandenburg, City Manager Elaine Simpson, City Secretary James Herrera, Public Works Project Manager Matt Brown, Wastewater Superintendent Trey Evans, Water Superintendent Tracy Ventura, Court Administrator Jeff Ringstaff, Interim Police Chief Terry McCord, Finance Consultant Aaron Egger, Contract Accountant 1) CALL TO ORDER  The City Council Special Called meeting was called to order by Mayor Mancilla at 6:05 PM at 2801 Ranch RD 1869, Liberty Hill, Texas. A quorum was established, and all members were present.  2) PUBLIC HEARING(S)  a) Hold a public hearing and hear a report from City staff regarding the proposed Annual This budget will raise more revenue from property taxes than last year's budget by an amount of $790,549- a 16% increase from last year. The property tax revenue to be raised from new property added to the tax roll this year is $403,080. Total debt obligation for the City secured by property taxes is $7,340,221. A copy of this Proposed Budget is available for public inspection at the office of  Budget for Fiscal Year 2024-2025 which begins October 1, 2024.  the City Secretary, 926 Main Street, Liberty Hill, Texas 78642. City Council Special Called Meeting 8.26.2024 Budget Special Meeting 1    1.) Introduction and staff report. 2.). Hold Public Hearing  3.). Announce that this proposed City Budget for FY 2024-2025 will be discussed at a Special Meeting of City Council on Wednesday, September 4, 2024 at 5:00 PM. 4.). Announce that this proposed City Budget for FY 2024-2025 will be considered for possible adoption by City Council at their meeting on Wednesday, September 11, 2024. Paul Brandenburg, City Manager, introduces the agenda item and provides the staff report at 6:06 p.m. The proposed increases for the budget are reflective of the priorities water, wastewater, and  staffing needs.  Mayor Mancilla opens the Public Hearing at 6:08 PM. There were no speakers.  Mayor Mancilla closes the Public Hearing at 6:08.30 PM.  Mayor Mancilla announces that this proposed City Budget for FY 2024-2025 will be discussed at a Mayor Mancilla announces that this proposed City Budget for FY 2024-2025 will be considered for possible adoption by City Council at their meeting on Wednesday, September 11, 2024 at 6:00 PM. b) Hold a public hearing and hear a report from City staff regarding the proposed tax rate. The proposed rate is the voter-approved rate of0.494851 per $100. The preceding year's rate was  Special Meeting ofCity Council on Wednesday, September 4, 2024 at 5:00 PM.  0.454559 per $100.  The City Council proposes to use revenue attributable to the tax rate increase for the purpose of increased maintenance and operational expenditures, equipment, facilities, staff compensation and benefit increases, and additional personnel to enhance city services, including public safety. For assistance or information about tax calculations, contact Larry Gaddes with the contact Larry Gaddes, PCAC, CTA Williamson County Tax Assessor-Collector 904 South Main Street  information below.  Georgetown, Texas 512.943.1601 proptax@wilco.org www.wilco.org.  1.) Introduction and staff report. 2.) Hold Public Hearing  3.). Announce thât this proposed City Tax Rate will be discussed at a Special Budget Meeting of City 4.). Announce that this proposed City Tax Rate will be considered for possible adoption by City  Council on Wednesday, September- 4, 2024 at 5:00 PM. Council at their meeting on Wednesday, September11,2024.  City Council Special Called Meeting 8.26.2024 Budget Special Meeting 2    Paul Brandenburg, City Manager, introduces the agenda item and provides the staff report and  mentions that the budget is hinged on the tax rate.  Mayor Mancilla opens the Public Hearing at 6:091 PM. There were no speakers.  Mayor Mancilla closes the Public Hearing at 6:101 PM. City Council on Wednesday, September 4, 2024 at 5:00 PM.  Mayor Mancilla announces that this proposed Tax Rate will be discussed at a Special Meeting of Mayor Mancilla announces that this proposed Tax Rate will be considered for possible adoption by  City Council at their meeting on Wednesday, September 11, 2024 at 6:00 PM.  No Formal Action taken. 3) REGULAR AGENDA  a) Review and action on Enterprise Fund Departments and Capital Funds. (P. Brandenburg/D. Paul Brandenburg, City Manager, introduced the agenda item and went over the contents oft the budget packet. The wastewater and the water funds are not balanced and there is a deficit and staff Terry McCord, Finance Consultant, explained that the wastewater fund is the fund that carries the load on the debt with big payments. As for the other funds there is money in the accounts that accumulate over the years. However, when you start spending for projects, at one point the projects will exceed what you have accumulated in that one year and that is why it is negative. Paul referred Council to page 4 of the wastewater fund and at the very end it states that the estimated ending Council Member Williams expressed that she is not in favor of both franchise fees and indirect costs coming from the wastewater and sewer accounts into the general fund account. Council Member Williams requested a formal policy bei implemented for the future. Terry will let the new Finance Paul went over Sewer Fund account number 51. Council Member Williams asked about the replacement of the grinder pumps because the City is spending in the six figures maintaining these. Council Member Williams also expressed her concern that when the ARPA line was initially discussed, the Engineer indicated that it would replace the grinder pumps by 2025. Council Member Williams asked staff to start formalizing plans for aj project so the City is not paying as much money Council Member Williams also suggested providing residents with the Do'sa and Don'ts ofwhat not to put in a grinder pump. Mayor Mancilla and Council asked for a Workshop at the last meeting in  Thomison)  will explain why. The sewer fund shows a balanced budget.  balance is $37,780,591.  Director know that this is aj priority.  for maintenance of the grinder pumps.  October for staff to bring a plan back before they go out for bid.  City Council Special Called Meeting 8.26.2024 Budget Special Meeting 3    Paul went over Water account number 52 and the amounts charged by Leander since 2020. There has been a significant increase from Leander. That increase has not been passed on to the customers. Therefore, these charges are eating away at the water fund. The Council expressed concerns as to why some budget line items have been cut or reduced in the water fund. Trey Evans, Water Superintendent, will check to see why water system maintenance budget was reduced. Terry McCord, went over Capital Projects fund number 55, and informed Council that those are projects that have more than one funding source. Council Member Williams asked staff to include The Council did not have any questions on Wastewater Impact Fees Fund 53, Sewer Impact Fees Council Member Williams asked about the Parkland Fund and what happens ift the City does not receive the grant? Terry cautioned that the $30,000 spent to write the grant will not be reimbursed if the City does not receive the grant. Paul clarified that ifthe City does not receive the grant, then the Council Member Williams expressed concerns over Tree Mitigation fund and the planting of the trees at City Park because the trees will need to be watered. Is this a good time for the City to be doing this right now? Council Member Ashley suggested the possibility ofusing reclaimed water to water the trees. Council asked staff to look into whether or not the Tree Mitigation fund (Ord. No. Council Member Williams asked in the street maintenance fund ift there was a system for a plan for routine maintenance, preventative maintenance, and rehabilitation of the roads. James Herrera, Project Manager, responded that they do not have a full-blown system in place. James said he would look at the cost to get a system established. Council directed staff to bring a plan to the first City Terry McCord went over the General Escrow fund. Terry informed Council that when she first arrived in February that Sidney had just created this fund, and it has something to do with traffic. It isan escrow account that holds funds for that. Council Member Young asked ifit could be related to Council asked staff what projects was included and not included for the CIP? Paul Brandenburg responded that staff will do more research and bring this item back to the City Council meeting next Wednesday. Council Member Williams requested that staff clarify how the budget aligns with the CIP. Mayor Mancilla directed staff to next Wednesday to present to Council which projects are included in this budget and which ones are not included. Mayor Mancilla asked staff for clarity on Capital Improvement Projects and would like it to be presented to Council next Wednesday. Mayor Mancilla asked staff to crunch the numbers out one last time and get it to Terry and she can make Terry McCord clarified that on court fees Fund 35 she has been able to identify the revenue that came in that was specifically designated as court restricted funds and have made steps to correct that. The monies are now going into the right place. Terry has checked with the auditors for the proper way to transfer the funds and will have that completed by the end of the year. Terry informed  how much is currently budgeted on the Water Plan when it is updated.  Fund 56, and Water Impact Fees Fund 57.  City will not do the project to pave the City Park parking lot.  6.07.03) can used for the tree sculpture.  Council meeting in November.  the synchronization oft the lights on Highway 29.  any adjustments if needed.  Council that she is also in the process ofworking with the forfeiture funds.  City Council Special Called! Meeting 8.26.2024 Budget Special Meeting 4    Council Member Williams asked about Fund 91 for Emergency Management and Terry clarified that the name oft this fund doesn'tmatch what the funds are intended for. This fund is for grants that you receive from the Federal Government such as FEMA and ARPA grants. Council Member Thayer b) Review ofl Departmental Baseline Budgets, General Fund departments, including estimates Paul Brandenburg, City Manager, went over the FY 2025 new position requests and possible Council Member Williams pointed out in the General Fund the amount being spent on ITi is a low Council Member Williams asked about the Community Engagement Fund and the changes she has Mayor Mancilla asked ift the Special Election expenses were included in the budget. Elaine Simpson, Council Member Williams expressed concern about being a million short in Parks and Recreation budget. Terry responded that in the general fund a lot of the departments do not have sustaining revenue by themselves, so it looks upside down. Council Member Williams is concerned because personnel went up by $500,000. Terry clarified that is because Katie's salary is split up across more than one department because she runs several departments. The dollars have been reallocated back. Mayor Mancilla asked the Council ifthey were okay with grant sponsorships (Fund 10-5-15-5261) going up from $45,000 to $55,000 in the City Council budget. Council requested the amount be Council did not have any questions on police budget, municipal court budget, strike comment on page 20: for development services. Mayor Mancilla expressed concerns over engineering costs ini the development services budget. Mayor Mancilla asked about development services fund number 10- 5-35-5236, what is Interest EXP- Capital Lease? Terry will check to see what the lease is for in Mayor Mancilla verified with Finance that they will take another look at the Community Engagement and Parks and Recreation Budget. There was discussion by Council regarding alcohol  suggested renaming this fund to match its intended use.  ofprojected revenue. (P. BrandenburgyT.MeCond)  amendments.  percentage for software and hardware.  seen in the numbers.  City Secretary, confirmed it was included.  Terry will go back and research the discrepancies.  lowered back to $45,000.  funds 10-5-35-5236 and 10-5-35-5251.  at community events and the liability of that.  c) Discussion, consideration and possible action regarding budget requests for FY2024-2025 including requests for new city personnel, equipment, supplies, projects and programs. (P.  Brandenburg/T. McCord)  Council agreed that this item was covered in the previous agenda items.  City Council Special Called Meeting 8.26.2024 Budget Special Meeting 5    4) ADJOURNMENT  Given there were no further agenda items and hearing no objections from the Council, Mayor Approved by City Council at their meeting the IHk ofSeptember 2024, by a vote of  Mancilla adjourned the meeting at 7:501 PM.  5Ayes, Naysand Abstentions, with Mone  being absent.  Cdhieal MayofCrystal Mancila  Attest:  Elainés Simpson City Secretary  Zkhnke  SRPORA  City Council Special Called Meeting 8.26.2024 Budget Special Meeting 6