196  CITYOF INGLESIDE REGULAR CITY COUNCILMEETING MINUTES SEPTEMBER 24,2024 6:30PM  OpeningA Agenda 1.Calll Meeting to Order.  The Regular City Council Meeting of the City of Ingleside was called to order by Mayor Adame at 6:30 p.m. on September 24,2024, at City Hall 2671 San Angelo. Ave., Ingleside,  TX and live video streaming.  2. Roll Call.  With Council Members present a quorum was established. Pro-Tem' Treacy Long, Julio Salinas, and Mayor Oscar Adame.  Council Members Present: Stevel Diehl, Stewart Wilson, David Pruitt, John Salinas, Mayor  3. Invocation.  Council Member Pruitt led the invocation.  4. Pledge of Allegiance.  Mayor Adame led the Pledge of Allegiance to the U.S. flag.  5.Citizen Comments and Reports.  Stephanie Hajducek, 2334 Hwy 361 Suite 182, addressed the Council about working at Project YaRen giving information about studies being conducted and stated the location S. Paul Baen, 2177 Glenwood, addressed the Council referring to the past process of the Vicky Cook, 3009 Lakeview, addressed the Council about the mural to be painted at the Humble Center. Cook would like to see something different. Suggesting trash cans be painted and spread around town which would encourage citizens to use them. This would be a new attraction for the travel guide. Cook stated that this could include the students Courtney Shane, 2181 Capeheart, addressed the Council about the recent social media posts. Shane declared that she would be standing up for the City Manager and City Secretary making sure all patriots do sO as well. Shane stated that the City Manager and City Secretary are working 24/7. The division that has happened over posts being done. Would like the Chieft to call the Texas Rangers and open an investigation.  and website information to ask questions about the facility.  Charter Review not requiring the City Attorney to attend each meeting.  painting them keeping the project local.  . Staff Comments and Reports.  a. Council Comments and Reports. No discussion was held on this matter. No discussion was held ont this matter.  b. Announcements of Community Interest and/or upcoming events. City of] Ingleside monthly financial report as of August 2024.  September 24, 2024 Regular City Council Minutes  Page 1of9    197  S. Paul Baen, 2177 Glenwood, addressed the Council about the summary of the monthly financial report and stated it was showing a negative expenditure of $318,798.10 with $583,322.33 int total revenues and showing as surplus for $902,120.43 The mayor asked for clarification on this item from the Director of Finance. Director d. City ofl Ingleside expenditures paid over $3,000.00 for the period of August 2024. Council Member Diehl stated that miscellaneous is ar red flag for accountability. Announcement of Updated Building Code Effectiveness (ISO) Grading City Manager stated that the rating willl be ar reduction andi isa positive which will be Mayor Pro Tem stated that! he wanted to thank) Interim Building Official Gene) Delauro  and its seems corrections need tol be made. Velas stated that the TexPool money is separate.  Classification. dropping.  for his contributions to the City of Ingleside.  Presentations Consent Agenda  There were no presentations presented for this meeting.  Agenda Items 9: and 15 were pulled from the Consent Agenda and moved into the Regular 7. Deliberate and take appropriate action on a Resolution of the City Council of Ingleside, San Patricio County, Texas appointing members to thel Library Board. 8. Deliberate and take appropriate action on a Resolution of the City Council of the City of Ingleside, San Patricio County, Texas, appointing Commissioners to the Housing 10. Deliberate and take appropriate action on approving the 2024 Zombie Walk and Trick 11. Deliberate and take appropriate: action on the City Council: authorizing the Inglesidel ISD 12. Deliberate and take appropriate action on the City Council authorizing the Port of Corpus Christi Tree For All event at N.O. Simmons park on December 5,2024. 13. Deliberate and take appropriate action on the modification from a 4-seat fire tender toa 14. Deliberate and take appropriate action on a Resolution of the City Council of Ingleside, San Patricio County, Texas, approving the waiver of pet adoption fees and microchipping fees at the Ingleside Pet Adoption Events occurring on October 05, 2024 and October 26, Motion: Mayor Adame made ai motion to approve the Consent Agenda excluding Items 9 and 15 which were removed from the Consent Agenda for separate discussion. Mayor Pro Tem  Agenda for separate discussion.  Authority of the City ofl Ingleside.  or Treat' Trail: at Live Oak Park on October 26th 20241 from 4pm-7pm. District Cross Country Meet October 10, 2024: at Live Oak Park  2-seat fire tender with associated equipment.  2024.  Long seconded the motion. Motion carried with allj present voting in favor.  Public Hearing  September 24, 2024 Regular City Council Minutes  Page 2 of9    198  16.1 Public) Hearing on thel FY2025 City Manager's proposed budget.  At7:19 p.m. Mayor Adame convened the Ingleside City Council into al Public Hearing.  Speaking For: None Speaking Against: None  S.I Paul Baen, 2177 Glenwood, addressed the Council requesting thatl his presentation' be added to this meeting stating that the minutes from the last meeting were: not available prior to this meeting. Baen stated that the notice of aj public hearing for this budget only referred to one date and the Charter states there should be two public hearings. The projected Fund Balances ini the budget VS. whati isi in the August financial statements had significant differences. Itcould On the General Fund the report shows a deficit of $303K VS. the August 31, 2024 financial Ont thel I&SI Fund) Balance int thel budgeti its showedan net fund balance of$1.5M. Pert the Property Truthi int taxation worksheet. August 20, 2024 showsac collection rate of1 104 percent. Legislation has changed the definition of collections to include interest and penalties, which is how the Debra Sanders, 30764 Ave. A, addressed the Council about being concerned when looking at a budget andt taking from Utility Funds with shortages and paying for other things. This creates a burden on the taxpayers. Sanders stated that with the new budget some of the Exempt employees are being paid higher than County officials. Sanders stated that its should be al lower precent for the Exempt employees anda a higher percent to the Non-Exempt employees. At7:26 p.m. Mayor Adame reconvened the Ingleside City Council into a Regular Meeting. 9. Deliberate and take appropriate action on the second and final reading of an Ordinance regarding the City ofI Ingleside, Texas, Municipal) Retirement System (TMRS) benefits(1) providing for ani increase to the employee contribution rate; (2) adopting non-retroactive repeating colas, for retirees and their beneficiaries under TMRS act $853.404(f) and (f- 1); (3) authorizing annually accruing updated service credits and transfer updated service credits; and (4) authorizing actuarially determined city contribution rate S. Paul Baen, 2177 Glenwood, addressed the Council and stated that ont the comparison of cost andi rates pertaining to the pension plan on the unfunded pension of liability showing that the City has more: assets than liabilities. The difference oft the changes willl bring the City to $600K increasing the pension benefits. The council has made changes toi reduce the unfunded pension liabilities and are ahead a half million dollars. Is the intention of Council to change the Discussion was held between Council Members, City Manager Lewis, Director of Finance Caron' Vela about $250K int the General Fund andi in FY2026 we will be back where we should be. Stating when ane employee is in the TMRS system and retires the funds go with them, but ifane employee quits ori is fired thej portion the City contributed stays witht the City. This should Kenneth Oliver from TMRS joined the meeting virtually for questions. Oliver stated that the extraj percent is for the employees., After. January the lump sum willl be paid in September. The Council wants assurance that the record showing will not be in a deficit. By December 31, 2024, any extra payment will be made at the end of the year. TMRS will send out rate letters in. June and willl have a surplus ift this is adopted but will not be able to say for sure it will be enough. The benefit increase that goes to the Unfunded. Account would be paid offi in 20years  be due tot the year-end entries that might be made part of the process. statement ofa positive $241 for a difference of $545K. Tax Summary pages onl Fund Balance is zero.  City is collecting more taxes than you are assessing.  RegularAgenda  payments.  liabilities. Baen suggests Council pay as youg go.  not bel based on who retires.  September 24, 2024 Regular City Council Minutes  Page3c of9    199  and a new rate letter issued in. June. The surplus offsets the normal cost paid every year. The prior service rates flip, if putting inl lump sums andi it willl bring you out ofai negative. Witht the S.1 Paull Baen, 2177 Glenwood, addressed the Council ands stated now we are aware oft the lump Motion: Council Member Diehl made a motion to approve Ordinance 2024-221 the second and final reading and to direct staff to ensure the funds available and allocate with an immediate payment of $350,000 on October 1, 2024, with a second payment of $350,000 on October 01, 2025, for each fiscal year. Council Member. John Salinas seconded the motion. Motion carried  new calculations iti is all assumed. sums, and this has now addressed the issue.  6-1.  ForMotion:  Council Member Diehl, Council Member Wilson, Council Member Pruitt, Council Member John Salinas, Mayor Pro Tem Long and  Mayor Adame.  Against Motion: Council Member Julio Salinas  15. Deliberate and take appropriate action on the Regular Meeting Minutes of September Council Member Diehl asked for an amendment oft thel Regular Meeting Minutes of September Motion: Council Member Diehl made a motion to approve the Regular Meeting Minutes of September 10,2024 as amended. Mayor Adame seconded the motion. Motion carried with all 17. Deliberate and take: appropriate action on a Resolution oft the City Council of Ingleside, S. Paul Baen, 2177 Glenwood, addressed the Council about the investment policies that have been around since 20081 that have been found after being told last year they couldn'tbe found. Discussion was held about the listing of investments with no other changes and asking to be Motion: Mayor Adame made ai motion to approve Resolution 2024-40 of the City Council of Ingleside, Texas, reviewing and adopting the Investment Policy. Council Member Pruitt  10,2024.  10,2024, to strike "at this time" on the motion for Item 17.  present voting in favor.  Texas, reviewing and adopting thel Investment Policy.  adopted as presented.  seconded the motion. Motion carried with all present voting in favor.  Mayor. Adame moved from Item 171 tol Item 20.  20. Deliberate and take appropriate action on the first and only reading of an Ordinance amending the Fiscal Year 2023-2024 Budget for the City of Ingleside, Texas, for the General Fund, Ingleside Development Corporation Fund, and the IDC Promotional Sales Tax Fund for various department operating budget adjustments. City Manager Lewis recommends the Council to adopt the amending of the FY 2023-2024 budget for the General Fund, Ingleside Development Corporation Fund, and the IDC Promotional Sales Tax Fund for various department operating budget adjustments. A discussion was held between Council Members, City Manager Lewis, and S. Paul Baen about requesting the addition of the promotion section. Being aware that the 10% of promotional funds was not separated and willl be separated into a new fund. The process for separation was already inj place by an action. The interest at 4B Corporation between 2020 and 2022 was not segregated out. Therei isi no additional sales taxl buti is 10% oft the IDCI Funds to be placed in the Promotional Fund. The Fund has been rectified and reconciled moving  forward with a new: fund set up.  September 24, 2024 Regular City Council Minutes  Page 4 of9    200  Motion: Council Member Diehli made ai motion to approve Ordinance 2024-23 amending the Fiscal Year 2023-2024 Budget fort the City ofl Ingleside, Texas, for the General) Fund, Ingleside Development Corporation Fund, and the IDC Promotional Sales Tax Fund for various department operating budget adjustments. Council Member Julio Salinas seconded the  motion. Motion carried with allj present voting in favor. Mayor Adame moved from Item 201 tol Item 23.  23.) Deliberate and take appropriate action on an ordinance authorizing the issuance of "City of Ingleside, Texas combination tax and limited pledge revenue Certificates of Obligation, Series 2024"; providing for thej payment ofs said certificates by the levy ofan ad valorem tax upon all taxable property within the city and further securing said certificates by al lien on and pledge ofthe pledged revenues of the: system; providing the terms and conditions of said certificates and resolving other matters incident and relating to the issuance, payment, security, sale, and delivery of said certificates, including the approval and distribution of an official statement pertaining thereto; authorizing the execution ofa paying agemtregstraragrement and an officiall bid form; complying with the requirements of the letter of representations previously executed with the depository trust company; authorizing the execution of any necessary engagement agreement with the city's financial advisors; and providing an effective Andrew Friedman, SAMCO Financial Advisor to the City addressed the Council about the bid results. Friedman explained that 6 bids were received. The City has a AA- rating for Certificates of Obligation which is al high credit quality and a low risk of default with S&P Friedman explained that there are many people across the country looking at our obligations. Thel Federal Reserve's actions and Municipal) Bonds fall with no changes, whichi ist better than forecasted. Friedman explained the taxi rate impact analysis with future taxable growth. To get With borrowing $9M and putting $9Mi in the Surety Funds on a 20-year obligation it would be completed by February 1, 2033. This can be refinanced in the future. A bond rate review was conducted. Due toj past conservative decisions the report kept the credit rating the same. S.I Paul Baen, 2177 Glenwood, addressed the Council abouti remembering when the city didn't have a crediti rating. This is a great time to move forward with Certificates of Obligation and Discussion was held between Council Members, Friedman, Baen, and Staff about the Texas Water Development Board financing was closed in) FY2024. The Schedule of debt for 2025 $19Mi is not being paid for I&S which is in the utility fund tonight but not currently in the budget. Friedman stated that the City of Ingleside is in great shape financially. The tax rate The City Hall Construction linei is fori future processes for capacity of possible future projects. $60M is the City's debt capacity. A 20-year term and net benefit is $9.5M on a $10M loan. The actual cost tol have a $13MI loan would be $935K with interest and thisi is calculated into the budget under the proposed budget. There are some specific uses which are the Wastewater Motion: Mayor Adame made a motion to approve Ordinance 2024-24 authorizing the issuance of"City ofl Ingleside, Texas combination tax and limited pledge revenue Certificates of Obligation, Series 2024"; providing for the payment of said certificates by the levy of an ad valorem tax upon all taxable property within the city and further securing said certificates by a lien on and pledge of the pledged revenues of the system; providing the terms and conditions ofs said certificates andi resolving other mattersi incident andi relating toi thei issuance, payment, security, sale, and delivery of said certificates, including the approval and distribution of an official statement pertaining thereto; authorizing the execution ofap paying agent/registrar agreement and an official bid form; complying with the requirements of the letter of representations previously executed with the depository trust company; authorizing  date.  credit agency. The top bidder was at 3.58%.  the lowest interest rate possible you must comply with some tax laws.  needs tol happen now.  analysis calculates the future bonding capacity for the next 30: years.  Treatment Plant, water renovations, and streets.  September 24, 2024 Regular City Council Minutes  Page 5of9    201  the execution of any necessary engagement agreement with the city's financial advisors; and providing an effective date. Council Member Diehl seconded the motion. Motion carried 6-1.  For Motion: Against Motion:  Council Member Diehl, Council Member Wilson, Council Member Pruitt, Council Member John Salinas, Mayor Pro Tem Long and  Mayor Adame.  Council Member. Julio Salinas  Mayor Adame moved from) Item 23 tol Item 18  18. Deliberate and take appropriate action of the first and only reading of an Ordinance adopting the: annual budget for the City of Ingleside, Texas, fort the: fiscal year beginning October1 1,2024, and ending September 30, 2025; estimating the revenue for said fiscal year; appropriating for the purposes stated the sums set forth in said budget; and directing the City Manager to make necessary entries upon the books and accounts of S. Paul Baen, 2177 Glenwood, addressed the Council Members about the City adopted in 2019a5 5%1 revenue increase associated with water and sewer andi isolated account 40.21 And 54.022 onj page 96, in) FY22-23 there was $583K recorded int the water account for debt, there was $328K for sewer debt reserves, beginning in FY23-24 the line items for those revenue streams show zero. Baen asked what happened to the 5% increase. Discussion wasl held between Council Members, City Manager Lewis, Director Vela and Baen about Council adopting thel Resolution last year as as 5%i increase oft the Water and Sewer Rate. Thati resolution said 3% of total sewer revenues instead of on the increase. Ther new resolution tol be adopted wouldi raiset thei new rate to 22%1 to ensure wel havet the funds reserved in contingency for the Wastewater Treatment Plant. Utilizing the $3.4M: set aside and utilizing the $80K from the current year set aside, utilizing $900K over many years from the IOB contract and a schedule which shows how those payments will bei made. Thei money isi ina a separate fund balance. The original resolution from Debra Sanders, 30764 Ave A, addressed the Council about] presenting the budget so thati normal citizens can understand, andi it must be listed somewhere. Citizens wantt transparency. Thet tax Further discussion was about having to approve a rate which is just below the threshold of $.074 percent, and the $0.64 taxi rate, which Council cannot go above the rate and makes sure that Council doesn't exceed the rate. Still giving the exempt, a 2.8 percent COLA increase. Cindy Wilson, 2635 San Angelo Ave, addressed the Council about Item #7 and in the Charter on the budget section it states the budget is supposed to be easy for the City to understand, therei isi not one page number ori index int this current budget and Council should enforce what Final Discussion about the budget is not an easy process, and the City has sorted out past budgets. Looking forwardt to the additional newi toolst tol help with the budget. This budget has Motion: Council Member Diehl made a motion to adopt Ordinance 2024-25 on the first and only reading of an Ordinance adopting the annual budget for the City of Ingleside, Texas, for the fiscal year beginning October 1, 2024, and ending September 30, 2025; estimating the revenue for said fiscal year; appropriating for the purposes stated the sums set forth in said budget; and directing the City Manager to make necessary entries upon the books and accounts of the city to show appropriation and allocation herein provided. Council Member  the city to show appropriation and allocation herein provided.  2019-2023 was rescinded in 2024.  rate and what the budget is based oni is $0.64 percent.  Sanders stated that the exempt employees are already tool highly paid.  isint the charter.  been more detailed than what wel have previously had.  John Salinas seconded the motion. Motion carried 6-1.  September 24, 2024 Regular City Council Minutes  Page 6of9    202  Forl Motion:  Council Member Diehl, Council Member Wilson, Council Member Pruitt, Council Member John Salinas, Mayor Pro Tem Long and  Council Member Julio Salinas.  Against Motion: Mayor Adame  19.) Deliberate and take appropriate action of the first and only reading of an Ordinance providing for the levy of taxes for they year2 2024 on all real and personal property within the corporate limits of the City of Ingleside, Texas; and appropriating monies for the payment of expenditures for the maintenance and upkeep of the City of Ingleside, and S. Paul Baen, 2177 Glenwood, addressed the Council about why there is $1.5M in the bank Motion: Mayor Pro Tem Long to move that the City adopt an annual tax rate of $0.642061 of which $0.440765 on each $100.00 worth of all property within the limits of the City of Ingleside is hereby levied and fixed for the current expenditures of the City of Ingleside, Texas, and for the general improvements of the City and it's property and $0.201296 of each $100.00 worth of all property within the limits ofthe City ofI Ingleside, Texas is hereby levied and fixed for the purposes of creating an interest and Sinking Fund for the retirement of Tax Notes, Certificates of Obligation and General Bonds. Council Member John Salinas seconded Discussion was held about not wanting to commit to Sinking Funds and looking at future years like a contingency. Previously reflected werel homestead exemptions, when that process was conceived the City was at $4M and now at $1.5M, our exemptions are higher than any  other purposes. for the) I&S Fund Balance.  thet motion. Motion carried with all voting in favor.  other surrounding city.  Mayor Adame moved from Item 19t tol Item 21  21.) Deliberate and take appropriate action on a Resolution of the City Council of the City ofIngleside, San) Patricio County, Texas, to nominate a candidate for: appointment to the S.) Paul Baen, 2177 Glenwood, addressed the Council and stated he had previously served on  San Patricio County Appraisal District Board of Directors.  that board and volunteered to serve.  Discussion was held about a vacancy and needing to nominate a member.  Council Member Diehl nominated S. Paul Baen.  Motion: Council Member Diehl made a motion to approve Resolution 2024-41 of the City Council of the City of Ingleside, San Patricio County, Texas, to nominate S. Paul Baen for appointment to the San Patricio County Appraisal District Board of Directors. Council Member Wilson seconded the motion. Motion carried with all present voting in favor.  Moved tol Item 23.  22.) POSTPONED ON 9/10/2024 Deliberate and take appropriate action on first reading of an Ordinance granting a special use permit for intensive use authorizing a crude oil storage terminal for the following property legally described as a 288.13 acre tract comprising of 45.67 ACS OUT OF A-262 ROSA TEAL SURVEY, ABST 262 ROSA TEAL36198ACRES, 44.08ACSOUTOF, A-262 ROSATEALSURVEY,amdABST184 WM MCDONOUGH LAND OWNED NOT IN USE 162.182 ACRES and further  providing for effective date, reading, severance, and publication.  No action taken.  Mayor Adame moved from Item 22 to Item 24.  September 24, 2024 Regular City Council Minutes  Page 7of9    203  24.1 Deliberate and take appropriate action on the resolution changing the water and wastewater base and volume rates contained in Appendix "A" Fee Schedule of the Discussion was held between Council Members, City Manager, Director of Infrastructure Gary Paredez about the rates being based on the budget that was adopted. The base and volume rates cannot be compared to other cities. The operation costs are spread out over different bases. Industrials are not contributing tot the wastewater since they may have on-site sewer and do use City water just like the citizens on septic only pay for water. Aging infrastructure is a concern and how to pay for it. Water and sewer are a stand-alone business tob balance. 22% included was to make the debt payment schedule. Itl has beeni recalculated to 10j percent. There is a $2M bond issue needing to be paid off. There is an additional 7%1 for upkeep and maintenance with readjusting the maintenance of it. The existing revenue VS. expenditures with allocations for water sewer rates. Not being able to hit the budget to the S. Paul Baen, 2177 Glenwood, addressed the Council about San Patricio supply increase in Debra Sanders, 3076 Ave A, addressed the Council about budget amendments being moved to different Funds during the budget amendment review. Sanders stated that the Wastewater debt should not be taken from the Utilities Fund. When Sanders served on the Council previously the compensation was donated tot the elderly and suggested that this could be done Further Discussion was about the average rate comparison was completed. The increase is $39.00 for water Vs. previously $35.00 on 2,000-gallon water usage. The possibility ofal bond election which is approved by the citizens. If the proposed rate increase does not pass by Motion: Mayor Pro Tem Long made a motion to approve Resolution 2024-42 changing the water and wastewater base and volume rates contained in Appendix "A" Fee Schedule of the Ingleside Code of Ordinances. Council Member Pruitt seconded the motion. Motion carried  Ingleside Code of Ordinances.  penny every time.  their water rate from $3.52 to $3.77, whichi is 7%i increase at Odem.  for other City needs.  October 1,2024, there willl be al budget review.  4-3. For Motion:  Council Member Pruitt, Mayor Pro Tem Long, Council Member  John Salinas, and Mayor Adame.  Against Motion: Council Member Diehl, Council Member Wilson, Council Member 25. Deliberate and take appropriate action on the resolution changing monthly fees charged to users ofs solid waste services contained in Appendix "A") Fee Schedule oft the Ingleside Discussion was held about the 4% increase every year being in the contract. The new untrained drivers for solid waste services are not getting the trash in the truck with several complaints from citizens having toj pick up the trash from the road after collection. The rate sheet applied 4% increase across the board which is int the 10-year contract and can Motion: Council Member Pruitt made a motion to accept Resolution 2024-43 changing monthly fees charged to users ofs solid waste services contained: in Appendix"A"Fees Schedule of the Ingleside Code of Ordinances. Council Member John Salinas seconded the motion.  Julio Salinas.  Code of Ordinances.  be rebid at any time.  Motion carried 6-1. For Motion:  Council Member Diehl, Council Member Wilson, Council Member Pruitt, Mayor Pro Tem Long, Council Member John Salinas, and  Mayor. Adame.  Against Motion: Council Member Julio Salinas.  September 24, 2024 Regular City Council Minutes  Page 8 of9    204  Executive Session Closing Agenda  There was nol Executive Session presented for this meeting. 26. Items to consider for placement on future agendas.  Mayor Adame wants a Special Meeting on Monday September 30, 2024, and Attorney to Council Member Julio Salinas isI requesting N.O. Simmons Park grass be cut and! have staff  provide the language.  add solid waste pick up on a Regular Council Meeting.  27.Adjourn.  Mayor Adame adjourned the regular meeting ofthe City of Ingleside at 9:16p.m.  APPROVED:  2K Pedro Oscar Adame, Mayor  ATTEST:  BB Ruby Beaven, City Secretary  September 24, 2024) Regular City Council Minutes  Page 9 of9