Council Meeting Minutes July1,2024 6pm  1. OpeningCeremonies:  Mayor. Jolly called meeting to order at 6:00pm  Those in attendance were City Secretary Naconal Martinez, City Administrator Derek Stephens and Councitmembers S. Braddock, S. Henderson, S. Overstreet and Kent Stone  2. Citizens Presentation: None 3. Department Head Reports: Ronny- No.  Derek- Didy'all have any questions about the Reports?  Derek- Ithink the only thingl had was we have had at ton of sewer issues on thel Public Works side. With the Landfill we are down one. Our Part-time guyi is no longer with us so it's just Paul and. Juan out there. We are: sending guys from Public' Works to fill in some when they have time. But we are looking for another guy out there which will be a Seasonal Temporary) jobi for1 thet time being andi then we will re-evaluate when it'st timet to seei if we want to bring them on Part-Time. Buti for1 the mean time they are: still digging.  4. Approve and Accept. June 2024 Minutes: Shiloh- Motion to approve Minutes Kent- Seconded (motion passes unanimously)  5. Discuss, consider and take action on appointment of Mayor Pro-Tem. Kent-Ithink we should keep asi is because ati this moment there is 40 of the 5 councilmembers that arei first responders. Shiloh is more available tol be ablei to handle that iftheyn needed him. So, Imotion to keep Shiloh as Mayor Pro-Tem.  Sam- Seconded (motion passes unanimously)  6. Discuss, consider and take action on the appointment of new board members for the Sam- motion to accept appointment of Regina Ingle and Smith McLelland as newl board Kristina- Cement is going int today, plaster will goi in next week. It been as super slow Kent- Michelle said that it might possibly open after the pool gets done andi they cani finish  Economic Development Committee.  members for the Economic. Development Committee Stephen-I0 dol have one question, what's going on withi the pool?  process.  the rest at al later date?    Kristina- No, we will not be doingt that. Sam- Motions to accept the new! board members Stephen-seconded (motion passed unanimously) 7. Discuss Financials and Auditors update.  Derek- l'vel been working on1 the budget with Gary, and hei is going to speak toy you a little about what's going on. As fori the Auditors update, Caroline wasn't able to bel here since we had to move the meeting up. I'm hoping she will be at our next meeting to give us an update. Gary- We have madei tremendous progress. Previously, lasty year, around August- September if you could remember, we didn't think we were going to make payroll. We knew we needed to make huge Adjustments. Isat down to speak withi the council about keeping on1 track and not going off and I'm happyt to report we are doing good. This is not an event thisi is a process. We have al long way to go, we. just havei to stay the course. (handed out spread sheets to council) Everything on this sheet is what we do, and this is very transparent. This tells you how our money is being spent and how we are taking care of our citizens. Please feel free to ask questions abouti this spreadsheet. Total for the year was 1.6 million dollars, we are at 85.89%. That shows that wel have collected 85.89% of the revenue fort the year and we still have 31 months to go. Another way to look at that is we are 75% through the year. Anything over that 75% is good. We are at 85 SO we are doing well. Should we expect to get any more? No, the majority of our revenue is from Ad-Valorum, and we get the majority oft that at thel beginning of they year. That is when all our tax money comes in. Also, we get Republic money and that comes in October. So, we have gotten most of the money that we are goingt to be getting this year. Ify you go toi the next page. These are going to bet the departments. They are split up by departments for expenditures. Administration has $881,000 worth of expenditures that we budgeted. We are currently sitting at $595,000 and thati is 65% of thel budget. Remember, anything less than 75% is agood thing! So, thisi is a healthy number. Next department is Police they are budgeted at $593,000 and to date we are $404,000 with a 68% of the budget andi they are under 75, good thing! Grounds and Streets, we budgeted $98,000 we are at $64,000 which gives us 65.69%. Pools and Parks $97,000 and yeart to date is $56,000 and that putst them at 57%. Fire Department is $54,000 and we are at $30,000 and that puts them at 55.5%. Codel Enforcement is $73,000 and $50,000 and 69.5% is where we are budget wise. Water seweri fund ont the revenue side we budgeted $954,000 and' Year to date wel have collected $753,000 which is 78% oft the revenue. So being above 75% is a good thing. And our expenditures for the Water and Sewer Department we projectedi int the budget of $833,000 and we are sitting at $531,000 that is 63%. Sanitations budgeted $878,000 in revenue and we are at $839,000, that is 95% of the budget for1 the year. For1 their expenditures we estimated them to be at $890,000 and they are at $582,000, which is 65.4% of the year.. Just in summation, lam extremely pleased with you guys that are sitting here at the council chambers and extremely pleased with those sitting at that back table. We created aj plan, and we are working on1 the plan, and we arei in a much better position. Last year, this right here is clear, we were about to1 fall off. This year looks good but could be wreck iti int the last 31 months we have lefti int the year, absolutely! But! Thave faithi in you all. Iknow that there are al lot oft things that we still need to get done    but do wel havei the means to get everything done that needs to be done. Not rightnow! But, with all the work thaty you have done ini the lasty yearl do seei thati in thet future we can get close to getting those things done. In order tol be what we consider-heatthy" thet typical rule of thumb ist to have 31 months of reserves on! hand justi in case. Why should wel have 3 months of reserves on hand, you ask, wellj justi in case: something happens.lam: sO thrilled to be here to present this kind of budget. Int the last 91 months to seei this kind oft turn around Ihave faith iny y'all that y'all can continue at this pace. Doy'all have any questions? Ronny- One thing that we can look ati for Sanitation is that they have brought in 96% revenue and witht the hailstorm it'll probably go upto about 1100r115%. It's not good for them orus Shiloh- Doy youl have access to previous years wheni it comes down to the required Shiloh- Have we ever been near where we are at?1 Iwasn't sure wheny you looked at the Gary- Back when we got the Covid money, youl had a wash of money at that point but, that Gary- Soi the core results oft thet financials, whatlcall the "Operation of the City", howt the city generates revenue and continues to generate revenue and how money is being spent. Those were: significantly lower numbers. I've never: seen them at this point.  but it'l help the city. Gary- Yes.  reserves? Have you looked back at any of that?  budget the last few years, I've never: seen it look this good.  money was quickly spent. Shiloh- Ity was already dedicated.  Sam- We owe you al lot! Gary- No, you owe yourself al lot. Sam- You guys have done an amazingi job! Gary- Those guys!  Stephen-Ireally don't1 think anyone understands. remember have panic talks with you on the phone many times. We really had no ideai that we would even make payroll. It wast that Stephen- Are we ini in aj position this coming year to take any of the revenue that we made Gary- That's a good question! The: short answer is yes. Iwould invest in something that is Derek- That is whatl Iwant to do withi the Republic money. Whatl Iwant to do with iti is begin to obligate those funds to starti those closures. And usingt the money that itg generates fromi it to strictly dedicate it toi that. It'll be al long-term asset that will continue to pay if we can  crucial! To see this much of at turnaround, that's them!  Sam- It's al breath of fresh air. this past year and begin to invest it. bringing your more money worth pouringi into.  string it together.  Ross- what doy you have in mind to invest that in? Derek-Ihaven't, got that faryet.  Gary- That is an excellent question. We as a municipality have to be very careful in what we investi in. But there are such things that are available for us such as institutions. One thing that comes to mind is a CDI letter. A cd letter, wel have a unique opportunity right now! bc the rare situations in thei financial markets. Where the long-term interest's rates arel better than the: short interest rates. Its usually the other way around. You anticipate what your cash    needs are, going tol bei in 30 days, 60 or 90 days up as far as 180 days as long as the short- term rates are: substantial and invest a certain amount of money that will mature at those pointi int time whenever you are going to need them to pay bills. Nowi ify you don't need it, for some reason' you have an influxt from another source, don'ts spend it, and keep iti rollingi into another one. And keepi it working for you. Anl keepi iti invested in the safe FDIC insured Stephen- This has been something me and Derek talked about early on, but we. have never Stephen- youl hit ther nail ont thel head. And for a while it always looked like we hadn't done anything. But what people didn't understand ist that what you are: seeing now and what you've seen there was no wherei to geti iti from. We weren't even on enough financial footing Ross- Buty you do still say that you have to have at least a $750,000 reserve to even doi that. Gary- Ir mean that is part of your cash and we are notl liquidating that its till available to us. Its part of ouri fund balance. So, ify youl have it working for you its still cashy you can getyou hands on. Itsj just having to keep enough money to do sound business. Stephen-1 That was my question. Are we going to have to do another.year, just liket this one or are we ok to go ahead and start investing and doing some of1 these things. Gary- Iwould say let's take another look at it at1 the end oft they year. Stephen- But we arei trending in the right direction to possibly doi it.  investments that will help you earn more money. been at a point where we can dot that.  Gary- Exactly!  to got to the bank to try.  Gary- Any other questions? Sam- Ijust want toi thank you. 9. Future Agenda Items  Ronny- Oni the' "Future Agendal Items"lwould like to change the wording to say something along the lines of, discuss any other item pertaining to City business or public comment for informational purposes no action may be taken on these items except Future items.  Sam- Policy and Procedure Manual  8. Executive Session  a. Pursuant to the Texas Government Code Section 551.074 Personnel Matters = to deliberate the: appointment, employment, evaluation, reassignment, duties, discipline,  or dismissal of a public officer or employee.  i. City Manager  Mayor. Jolly recessed" the regular session and convened into the executive session at 6:57p.m. Mayor. Jolly adjourned the executive session and reconvened into regular session at 8:40 p.m.  10.Adjourn    Shiloh- motioned to adjourn at 8:40pm Stephen- seconded (motion passes unanimously)  These meeting minutes were PASSED and APPROVED on1 the 14 dayo of Avog 2024  000mo mag  Bagas  Naconal Martinez, CitySecretary  Ronny. Jolly, Mayor