Robert Rayburn, Mayor Commissioners: William Beaty District 1 Anna Velez District 2 Michael Keller District 3 BC Hardin District 4 CITY OF MASON CITY COMMISSION WORKSHOP AGENDA MARCH 24, 2025 5:30 p.m. WORKSHOP Richard P. Eckert Civic Center, 1024 McKinley Avenue, Mason, Texas 76856 Call to Order by Mayor Robert Rayburn Invocation given by Commissioner BC Hardin Pledge of Allegiance led by Commissioner Anna Velez Public Comments: Citizens may present complaints, comments or ask questions for item(s) not posted on the current agenda. Commission members may not discuss the item, except to ask questions of the city staff or the citizen, for further clarification. Commission members may request that the item(s) be placed on a future agenda for action. The time allowed each citizen to speak is two (2) minutes, or for a group, five (5) minutes. ITEM 1: Discussion Only Discuss water infrastructure and possible financing. ITEM 2: Discussion Only Discuss vehicle/equipment replacement financing and capital improvement needs. ITEM 3: Adjourn Notes to the Agenda: 1. The Commission may vote and/or act upon action items listed in this Agenda. 2. If, during Public Comments, Commissioner's Report, or Administrative Report, an inquiry is made about a subject for which notice has not been given as required by law, the Commission may make a statement of specific factual information in response to the inquiry and may recite existing policy in response to the inquiry. Any deliberation of or a decision about the subject oft the inquiry shall be limited to a proposal to place the subject on the agenda for a subsequent meeting. 3. The Commission reserves the right to retire into executive session concerning any of the items listed on this Agenda, whenever it is considered necessary and legally justified under the Open Meetings Act. TEXAS GOVERNMENT CODE $8551.071-551.087 allows for executive sessions for consultation with attorneys, deliberation on real property, receipt of gifts-personnel matters and conferences with employees. Robert Rayburn, Mayor CITY OF MASON WORKSHOP MARCH 24, 2025 Across the country, communities of all sizes and income levels are struggling with aging infrastructure. The City of Mason is no different. We have water lines that are nearly 100 years old and new lines that are of inferior quality materials that break easily and frequently. In 2021, the City contracted with Public Management, Inc. to identify the most pressing infrastructure needs. In 2023, the City contracted with Enprotec to further refine the necessary water and wastewater line needs and assist in applying for a Texas Water Development Board Loan to address the issues with the water system. That loan for over $17 million was approved by the TWDB, but the City can not support the debt service on this amount. The task now is to narrow down the most pressing needs, determine if the projects can be done in house or need to be contracted out, and how we will pay for it. Also of great concern is the lack of necessary equipment and the condition of the equipment we do have. Jobs take exponentially longer than they should because the crews don't have functioning equipment. In many cases, this causes an unsafe environment for employees. In this presentation, will llustrate the total need, the imminent need and the right now needs as well as discuss options for financing. STREETS Historically, the City has budgeted for sealcoating in the operating budget at approximately $120,000 per year. The following streets were identified as needing sealcoat and have been completed in the past two budget cycles. Street Locations College St FM 1871-US 87 Elm St Short -Rainey Pontotoc Hawkins-Starling Koocksville US 87- City Limits Nueces Waxwing-Pontotoc Waxwing Nueces-Bluebonnet Post Oak Us 87-Rainey Cedar Full Street Bridge Austin-Pontotoc Ranck Austin-Pontotoc Robinson Full Street Comanche Full Street The following streets need a complete rebuild including sub grade prep and compacted base. Many of these streets are also where water or wastewater lines that need to be replaced are located. It would make sense to replace water/wastewater lines and rebuild the streets at the same time. Street Locations Brazos Meadowlark - Comanche Mesquite Starling - Sabine Mulberry Balsam-Bluebonnet Sharla Full Street Meadowlark Brazos - Sharla Sabine Comanche - Pontotoc Spruce Old Mill Creek - Owens Owens Full Street Collins Lemburg - Ave F Hawkins Morrow - Cedar Lemburg Mebus - Westmoreland McCollum Full Street Hey Full Street WATER SYSTEM CIP# STREET WORKTO BE DONE 1 Wren, Fir, Orange Upgrade to 6" PVCI water line. 2 WN Mulberry, Sarla and Nueces Upgrade to 6" PVC water line 3 Hawkins & Morrow from Bridge to' White Abandon 3"line 4 Ranckt from Pontotoc to Cedar Upgrade to 6"F PVC water line 5 Bridgef from US 29 to Morrow Upgrade toe 6" PVCI water line 6 Landfill and Fair Grounds Rd Bore under Hwy to loop Post Hill from' Westmoreland to College, Moodyf from' Westemoreland to Fire 7 Dept and EL Pasot to Westmoreland & Elm from College to Wilson Upgradet to 6"F PVC water line West to east at dead ends ofWhitney, Leifste and Hooten, Lemburg from Centennial! Springs toy past Collins & Centennial Springs from: 1871 to first curve 8 then diagonal tol Mebus Install 6" water line and connect tot hydrant 9 Existing Line from Estes Lane to Pontotoc & Forsythia Upgrade to 6" PVC water line 10 Bickenbach from Hwy 291 to Pontotoc & Smithi from Hwy: 291 tol Hwy 87 Upgrade to 6" waterl line and connecta across creek Robin from Pontotoci tol Hwy 87N, Millard from Robin to Pontotoc, SI Pecan from 11 Westmoreland to Bryan Upgrade to 6" PVCV water line Brazosf from Pontotoc to Comanche, Mesquite from S. Live Oak to Sabine & 12 Comanche from Sabine to dead end Upgrade to 6" PVCV water line 13 Pontotoc from Foirsythia to Sharla Upgrade to 10" water line 14 AveF Ff from McKinleyt to Rainey & Raineyf from Ave Fto Hwy 87 Upgrade to: 10" water line 15 GoochAvet from Hwy 291 to Morrow Upgrade to 10" water line In addition to the above dentified projects, I believe the most pressing water system issue is the lack of working valves. When there is a repair needed, we have no way to isolate the line. This results in an excessive amount of water being lost as we open fire hydrants to relieve pressure and use pumps to lower the water level in the hole. This is an imperfect system which in addition to the expensive water loss and potential to cause a boil water notice to be issued, it creates a dangerous environment for the crew that must perform underwater repairs. WASTEWATER SYSTEM While not as widespread as water system issues, there are some wastewater lines that need attention as well. The following locations need to have the dilapidated pipes and manholes replaced. WATEWATER LINES NEEDING REPLACEMENT Wheeler Street & S. Pecan Street Lemburg, Collins & FM 1871 S. Live Oak & Post Oak Fir S. Magnolia & State Hwy 29 N Ave F & US 87 N Spring Street In addition, numerous manholes throughout the system are leaking and need to be repaired or replaced. ELECTRIC SYSTEM The study and analysis of the Electric System was conducted by LCRA in January of 2024. The following 5 projects were identified as needing to be completed by 2026. Project# Reason Description 1 Capacity Reconductor a span of overhead conductor of FM: 130 2 Phase Balance Change phases on several branches of both FM 120 and FM 130 3 Reliability/Flexbilly Transfer load from SH130 to SH120. Install switches for contingency as well. 4 Power Factor Install 3 new capacitors on SH130 5 Contingency Reconductor sections of FM 120 for contingency loading. Project 1 was approved in the Fiscal Year 2025 Capital Improvement Budget. We are still in the engineering phase, but our crew has begun clearing trees, ordering materials and doing general prep for the project. EQUIPMENT Having proper equipment is essential to any job. The City has personnel that are assigned to the departments of Streets, Water/Wastewater, Electric, Landfill, Parks Animal Control, Maintenance (both mechanical and building), Recycle and Code Enforcement. Because we are sO small, there is extensive cross training and collaboration between the departments. There are currently 17 employees with a CDL and five more are in the process of getting one. There is an extensive equipment list ranging from small specialty tools to large trash trucks. The city has 15 pickup trucks and one administrative vehicle. The last time new trucks were purchased was in 2015, when three new units were acquired. The administrative vehicle and one pickup truck were purchased used within the last three years. The oldest vehicle in the fleet is 25 years old. Most of these vehicles are in rough and potentially unsafe condition. The Texas Commission on Environmental Quality (TCEQ) regulates the water, wastewater and landfill. There is certain equipment that is required in the permits for the landfill and wastewater treatment. In the following pages are descriptions of existing equipment, desired replacements and new additions. Those required by TCEQ will be noted in the excerpt from the active permit. The Street department doesn't currently have a dump truck. The one they had was transferred to the landfill a few years ago to assist with the construction of the new pit. During that time, the Landfill's truck was wrecked. The street department truck was a worn out 1991 International that was purchased from the county to replace it but ended up staying at the landfill after completion of the pit. That truck was not in good condition when it was purchased and is now in poor condition. The street department needs to have their own dump truck. They are currently making numerous trips with the flat dump bed on the pickup. This is not efficient. The digger derrick is a 2000 model truck with a 1984 boom that picks up the poles. The winch should be able to hold nearly 16,000 Ibs, but is struggling to hold 1,800 Ibs. There is no auger on this unit, sO we have no redundancy, meaning if the pressure digger is down for any reason, we have no way to set poles. The tractor and batwing used for mowing is a 1977 model. It will no longer fift the batwing and is on the "must replace now" list. VEHICLEL LISTING: STREET DEPARTMENT VEHICLE LISTING: SEWER& WATER DEPARTMENT Year Model/Make Desciption Year Model/ Description 1977 Ford Tractor 2012 C&MUT New Sewer Machine Trailer 1984 Series G 2012 Ford 3/4 T Water 1988 HATF 2013 Kubota WW Plant 2003 BROC 2012 Ford 3/4 ton Water Dept. 2010 Carry-All Speed Limit Trir 2012 Magn Trash Pump 1976 CMP Street 2008 Sewer Sewer Machine 2016 Ford F450 Street 2013 CNH/CE Loader/Backhoe 2001 BigT Street Century Trir 2011 Carr Vac. Trir 2015 Ford Street 1983 Sewer Sewer 2012 C&M Trailer 2015 Ford 4-door 2006 Case Loader/Backhoe 2002 Ford Ranger 2004 Chevy Park Truck 2024 Ditch Witch Ditch Witch machine 2001 Trailer Welder Trailer 2018 GMC Pickup 1993 Trailer Asbill Trailer 2001 Ford Pickup VEHICLEL LISTING: MISC. DEPARTMENTS VEHICLE USTING: LANDFILLI DEPARTMENT Year Model/Make Description Year Model/Make Description 2010 Ford/PK Bldg. Official 2015 FRHT FRHT-TT 2010 Ford/PK Maintenance 2004 Ford F750 Garbage Truck 2008 Dodge Pup 2000 Ford 3/4 ton J. Beam Pickup 2015 Ford A/C Dept. 1992 Woodchuck Landfill Chipper 2020 Nissan Office 2007 Ford F750 Garbage Truck 1996 Stewart/Stevenson Dump Truck 1990 BMY Army Truck Cargo Truck 2012 Freightliner Rolloff Truck VEHICLE! LISTING: RECYCLE DEPARTMENT 2010 Ford/PK Maintenance dept Year Model/Make Description 2011 Ford Fed's Truck 2015 Brag Trailer Recycle Dump Truck 2018 Mack Garbage Truck 2014 C&M Recycle Trailer 1991 Int'l Dump Truck 2006 Alle Recycle Trailer 2013 Ford 4 door 2007 Alle Recycle Trailer 2007 Shop Recycle Trailer 2008 Dodge Recycle P-up VEHICLE LISTING: ELECTRICI DEPARTMENT Year Model/Mak Description 2000 Ford Boom Truck 1991 Int'l Texhoma Digger 2005 Ford (Diesel) Aerial Bucket 1995 FRHT Bucket Truck 2013 Ford Extended Cab 2015 Ford F250 2016 RAM Small Bucket 2010 Int'l New Bucket 5.0 EQUIPMENT - 30 TAC $330.127(2) Equipment requirements will vary in accordance with the method and scope of activities on-site ata given time. Additional or different units of equipment may be provided as necessary to enhance operational efficiency. Initially, the following types and sizes of equipment will be provided at the facility. Equipment Type Number Typical Size Function (Minimum) Rubber-tired Case 621F Place dally cover and loader 1(1 tpd a 300 tpd) Front End Loader move soil. Process waste on working face, site Dozer 1(1 tpd - 300 tpd) John Deere D-5G grading, repairs to roadsa and dralnage structures. Compactor 1( (1 tpd - 300 tpd) Caterpillar 816F Compactwaste. Alternative Daily ECA-700 Place alternate dally Cover machine cover. Dust control and Water, truck 4,000 gallon firefighting. Caterplan 160M Road maintenange Offsite road graderi Serles andstp-gradnge Intermittent earth- On-site dump 10-12 cublc.yard moving needs such as truck capacity firefighting or mass hauling. In addition to the Landfill Facility Equipment list, miscellaneous pickups, vans, and other light ublity vehicles as well as various pumps, Instruments, safety, and training equipment will be on-site as necessary for facility operations. AS operations in evolve or because of significant Increases In volume of waste stream, an Increase to the number of equipment or additional unspecified equipment may be required 6 nentnaad for additional equloment In the above excerpt from our landfill permit, we are to have a water truck on site. We currently do not have one and are using a water trailer. Again, this is not efficient. TCEQ has allowed this as a temporary solution, but if we don't replace the water truck soon, we will start being fined. Generater awareness and Care Compactor.pdf XXASIX 17 of1 Eu) G Chapter Three Basics ofl Municipal Solid Waste Management Compactor tecth/cleats perform wO functions. They assure that the machine yets reasonable traction in the waste, and they chop/break/cut up the waste mto smaller pieces and weave the wastes together. This contributes to the compaction and densification ofthe material, Cleat Care A cleat length of 7 inches to 8 inches is standard. Itstime for new wheels when cleat heightis five inches or less. Wheels must be replaced four ata time, and anew set costs about $35,000 Furthermore, setlasts onlytwoto three years. It's important to measure wheels and cleats after every 1,000 housot and to rotate the wheels from front to back The cleats al wear operation differently. and extending cleat life also is accomplished by reducing Mantaining hard dirt, concrete and gravel sufaces as much as 1s constant travel over enough whilctraveling oversolid practical Thecleats will wear out quickly and other common softer waste, consimction and demolition debris, sludge, landfill materials. time and money on maintenance, clean wheels are a Along with saving traction at landfills. Clogged wheels reduce primary factor in assuring effectively traction and prevent compactors from operating Machine Passes TusZ . eee Estimate 16955from Centra. : /20/2025 Youdontolenge emal The above excerpt indicates that the standard size for cleats on the trash compactor is 7"-8" and should be replaced at 5". The cleats on the trash compactor are currently 3.5"- 4.5" as shown in the photos below. a . F A 07 a t 146 MAI ETAN B3 TITNS T8016 TN E FACILITIES The facilities owned and operated by the City of Mason include City Hall, the Civic Center, the Community Building, the RV Park, the Landfill, the maintenance shop, the recycle center/electric office with equipment storage at public works yard, the animal pound, old VFW building, old maintenance yard, three water storage tanks, six wells and the wastewater treatment facility. While each of these facilities could use some improvement and/or general maintenance, most are quite serviceable. The two needing the most attention are the animal pound and the maintenance shop. The animal pound has an odor issue that could be helped with installation of an exhaust fan; the cat room is in terrible disrepair. The cages are rusted and broken, and the setup has the food and water just a few inches from the litter box. The ceiling of the entire facility has spray foam, but there is nothing covering it. There is a family of squirrels that chew the foam, and it falls into the food and water bowls. The current maintenance shop is only one bay. Many times, the truck being worked on must be torn apart to diagnose, then parts must be ordered. If another repair comes in, it either must wait, or the first truck has to be put back together and moved, then moved back and torn back apart when parts come in. The existing maintenance shop has a lean-to attached that is intended to cover the trash trucks to help protect them from weather/sun caused damage. However, it isn't high enough to park the trucks under, it only covers the cabs. A new shop with adequate bays, tools and storage for the trash trucks would extend the life of the equipment and reduce cost by completing more repairs inhouse. In addition to the facilities and major equipment, we need small tools including the submersible saws used in water line repair; hand tools for both the equipment and building maintenance departments; pumps, hoses, etc to repair existing equipment; and animal traps. The existing traps have been repaired numerous times and have reached the end of their useful life. This time of year, we often have more calls for traps than we have traps available. ANALYSIS To bring all equipment and facilities into new condition is cost prohibitive and not necessary in many cases. The Fiscal Year 2025 budget is narrowly balanced with $149 surplus in the General Fund, $36,767 in the Utility Fund and $4,366 in the Capital Improvement Fund. In short, our current revenue is barely covering our operating expenses. The staff has worked diligently to identify the items that must be replaced to keep the city running, increase efficiencies and ensure safety for citizens and employees. As previously mentioned, there is heavy collaboration between the departments. We intend to play to this to complete as many projects as possible in house to reduce cost. There are certain things that we simply don't have the equipment, manpower or skills to complete. Those items will still be contracted out. The priorities identified by staff include: Replacement of the water lines on Wren, Mulberry, Elm, Fir & Nueces, with Wren and Mulberry being the most pressing; purchase (2) 6-12 yard dump trucks (one for streets and one for the landfill), a water truck for the landfill; a tractor and batwing for mowing; 4 pickup trucks; a mini-excavator, miscellaneous tools, cat traps, and building maintenance items; install 20 valves and 10 fire hydrants; build a new maintenance shop; and replace the feet on the trash compactor. The streets of Wren, Mulberry, Elm, Fir and Nueces have been identified by the Public Works Department as being the most problematic that we have the ability to repair inhouse. Wren Street has been repaired sO many times that it is now more bands than it is pipe. Each of these streets currently have a 6" line. The proposal is to upgrade pipe to better quality to reduce the ease with which it breaks. A typical 6" water leak will take approximately 4 hours to fix. In this amount of time, 205,127 gallons of water are lost. The average cost per hour of labor is $35.63 if only the water department responds, and it is during working hours. When the leak is particularly large, other departments assist in opening hydrants, getting materials, etc. If the leak is after hours, there is an overtime component to also consider. There are concrete lines that are up to 100 years old on Ischar, Ranck, Owen, Sommerfeld and Rainy streets, that we know of, with others likely. We would not be able to replace these inhouse. There have been three repairs to Ischar in the past year and two on Owens. These concrete lines are off size and require different, more expensive bands to replace. Below is the breakdown of the cost to replace the pipe, valves and hydrants on these sections of street. These costs do no include the backfill, replacement of taps or patching of the pavement. Street Base FH Valves Valve Cost Total Wren $12,800 $3,100 2 $ 1,880 $ 17,780 Mulberry $18,000 $3,100 3 $ 2,820 $ 23,920 Elm $1 14,300 $3,100 2 e 1,880 $ 19,280 Fir $11,308 $3,100 3 $ 2,820 $ 17,228 Nueces $20,800 $3,100 3 $ 2,820 $ 26,720 Material Total $ 104,928 Valve Installation 13 $ 7,000 $ 91,000 Total $ 195,928 FINANCE There are endless scenarios on what projects to tackle now and how to pay for them. I will present a few here, but any combination is worth discussing. We have been approved for a $17,385,000 loan through the Texas Water Development Board for the water line replacement. They offered only $105,000 in 0% financing and no grant funds. We can'tt take the $105,000 without taking the rest of it. The debt service payment on that amount would be $800,000 per year. We have reapplied for this program using the same criteria in hopes of receiving some grant money this time. We can choose to not accept any TWDB funds in this round and see what we get offered this year. We must still address the equipment issues. Staff has narrowed the list down to the following items, including the replacement of the water lines on Wren, Mulberry, Elm, Fir, and Nueces. The total is $1.6 Million Dollars. Item Cost Water Line replacement $ 105,000 Valve installation 20 valves f 160,000 Install fire hydrants - 10 $ 31,000 Backfill and material to replace existing taps $ 20,000 Street paving $ 225,000 Maintenance Shop $ 150,000 Animal Shelter f 10,000 Digger Derrick 175,000 2 Dumptrucks 125,000 Trash compactor feet $ 150,000 Water Truck S 70,000 Mini Excavator $ 60,000 4 pickups $ 200,000 Tractor & batwing $ 100,000 Miscellaneous small tools, lumber, paint, etc. $ 20,000 $ 1,601,000 Financing options for infrastructure and equipment include a Tax Certificate or Certificate of Obligation. A Certificate of Obligation can be paid using Ad Valorem Tax (property tax revenue) or through a water rate increase or fee, while the Tax Certificate can only be paid with (Ad Valorem Tax). There are pros and cons to each scenario. The interest rate on a Tax Certificate is higher, and it takes a little longer to issue as approval from the Attorney General is required. As with any loan, the longer we stretch the term, the lower the payment, but the more interest we pay over the course of the loan. The interest rate on the TWDB loan is 2.79% for 20 years or 3.19% for 30 years. The market issue rate is 4.29% for 20 years and 4.91% for 30 years. The TWDB issue can only be used for water line replacement. No equipment, tools, facilities or renovations can be done with these funds. It makes the most sense to issue two separate COs, one for equipment at the market rates and one for water lines at the TWBD rate. A few factors to consider related to a market issuance will include but are not limited to: Ar market issuance of less than $2 million will have higher closing costs. We will need to obtain a credit rating and possibly bond insurance. Additionally, the cost for preparing the offering documents would be more costly than a TWDB issuance. The City will need to dedicate additional time and resources for a market issuance. There are very few market issuances that are less than $2 million with a 30-year repayment term. If the City wants to pursue a market issuance, it would be best to consider either a 15 or 20-year repayment term instead of 30-years. A market issuance does not include an interest rate subsidy. The TWDB issuance will include a 35% interest rate subsidy and a portion of the loan ($105,000) will have a 0% interest rate. The interest rate subsidy means the TWDB interest rates are reduced and results in lower borrowing costs. A market issuance will be based on a market index plus an additional spread SO there would be higher borrowing costs associated with a market issuance. Overall, a TWDB issuance will have lower borrowing costs than a market issuance. The subsidized rates from TWDB and the flexibility of the repayment term will help the City with its financing needs. If we were to only replace Wren and Mulberry Street lines, eliminate the Digger Derrick, 1 pickup, and the mini excavator, we get down to $910,000. Item Cost Water Line replacement $ 45,000 Valve installation - 5 valves $ 35,000 Install fire hydrants 5 $ 15,000 Backfill and material to replace existing taps $ 10,000 Street paving $ 50,000 Maintenance Shop $ 150,000 Animal Shelter $ 10,000 2[ Dumptrucks $ 125,000 Trash compactor feet $ 150,000 Water Truck $ 70,000 2-3 pickups $ 130,000 Tractor & batwing $ 100,000 Miscellaneous small tools, lumber, paint, etc. $ 20,000 $ 910,000 Option 3 above only applies to personal property. If we were to eliminate the shop, animal shelter and wait for potential TWDB financing for all water lines, the cost of the equipment is $600,000. Item Cost 2 Dumptrucks $ 125,000 Trash compactor feet $ 150,000 Water Truck $ 70,000 2-3 pick-ups $ 130,000 Tractor & batwing $ 100,000 Miscellaneous small tools, lumber, paint, etc. $ 25,000 $ 600,000 In the appendix is the commitment letter from Government Capital. To finance $600,000 for five years, the interest rate is 5.568% and the annual payment is $140,767.97; 7 years is 5.499% with a payment of $105,574.86; and 10 years is $5.410% with a payment of $79,257.39. It should be noted that there is proposed legislation that will make it extremely difficult for cities to obtain financing in the future. By doing as little as possible now, we are guaranteeing that additional funds will be needed in the near future. - I am very concerned about the ability to obtain those funds if this legislation passes. I have included a synopsis of the bill in the Appendix of this report. Tax Increase VS Water Bill Fee The various scenarios presented above have annual payments ranging from $79,257 for limited equipment to $1,000,000 for complete water line replacement and a more expanded equipment replacement. A tax increase applies only to the City portion of the property tax. On the following pages are the current taxes for a $187,137 home and $319,079 home. The first home is currently paying $5,227.36 in property taxes, but only $565.25 of that figure is in city tax. Any increase needs to be discussed on a c/$100 of value basis rather than on a percentage to avoid confusion. A $.10 increase on the $187,137 home would result in an additional $187.13 per year. It would not change the amounts being paid to the County, School District or water district. Agricultural Value Loss:e $0 (-) Appraised Value:e $581,406 (=) HS Cap Loss: 0 $257,327 (-) Circuit Breaker: 0 $0 (-) Assessed Value: $324,079 Ag Use Value: $0 Information provided for research purposes only. Legal descriptions and acreage amounts are for Appraisal District use only and should be verified prior to using for legal purpose and or documents. Please contact the Appraisal District to verify all information for accuracy. Property Taxing Jurisdiction Owner: %0wnership: 100.0% Entity Description Tax Rate Market Taxable Estimated Freeze Value Value Tax Ceiling CM CITY OF MASON 0.177152 $581,406 $319,079 $565.25 CO MASON COUNTY 0.642700 $581,406 $324,079 $2,082.86 MI MASON ISD 1.108000 $581,406 $224,079 $2,482.80 WD WATER DISTRICT 0.029762 $581,406 $324,079 $96.45 CAD MASON CENTRAL APPRAISAL 0.000000 $581,406 $324,079 $0.00 DISTRICT Total Tax Rate: 1.957614 Estimated Taxes With Exemptions: $5,227.36 Estimated Taxes Without Exemptions: $11,381.69 Agricultural Value Loss:e $0 (-) Appraised Value:e $243,859 (=) HS Cap Loss: 0 $51,725 (-) Circuit Breaker: 0 $0 (-) Assessed Value: $192,134 Ag Use Value: $0 Information provided for research purposes only. Legal descriptions and acreage amounts are for Appraisal District use only and should be verified prior to using for legal purpose and or documents. Please contact the Appraisal District to verify all information for accuracy. Property Taxing Jurisdiction Owner: %0wnership: 100.0% Entity Description Tax Rate Market Taxable Estimated Freeze Value Value Tax Ceiling CM CITY OF MASON 0.177152 $243,859 $187,134 $331.51 CO MASON COUNTY 0.642700 $243,859 $167,134 $1,074.17 MI MASON ISD 1.108000 $243,859 $72,134 $799.24 $0.00 WD WATER DISTRICT 0.029762 $243,859 $192,134 $57.18 CAD MASON CENTRAL APPRAISAL 0.000000 $243,859 $192,134 $0.00 DISTRICT Total Tax Rate: 1.957614 Estimated Taxes With Exemptions: $1,462.86 Estimated Taxes Without Exemptions: $4,773.82 The chart below shows the effect of a Tax Rate increase in $0.05 increments on property ranging from $200,000 to $400,000. Sumnury 1132025 City of Mason, Texas Homeowner's TaxF Rate Impact "Preliminary Subject to Change. Fori illustration, purposes only, a Taximpact Basedo on me Value I85 $200,000 $250.000 $300.000 $350,000 $400,000 TaxRate Annual Monthly Annual Monthly Annusl Monthy Annual Monthly Annual Monthly $0.05 5100.00 $8.33 $125.00 $10.42 $150.00 $12.50 $175.00 $14.58 $200.00 $16.67 50.10 5200.00 $16.67 $250.00 $20.83 5300.00 $25.00 $350.00 $29.17 5400.00 $33.33 50.15 5100.00 $25.00 $375.00 $31.25 5450.00 $3750 5525,00 $43.75 $600.00 $50.00 $0.20 5400.00 $33.33 $500.00 $4167 $00000 55000 $700.00 $53.33 $800.00 $66.67 $0.25 5500.00 $4167 $62500 $52.08 $75000 $62.50 $$75.00 $72.92 $1,000.00 $33.33 $030 560000 550.00 $750.00 562.50 $900.00 $7500 $1,050.00 $5750 51.200.00 5100.00 The alternative to raising taxes is to increase our infrastructure fee. Itis currently $5 per connection and was just implemented last month. The city has approximately 1,350 connections. Raising that to $10 would result in an annual income of $162,000. Raising it to $15 would result in an annual income of $243,000. This revenue can be used to make loan payments, or tackle portions of the capital improvement needs each year. The debt service on a $2,000,000 TWBD bond and a $1,000,000 Market Bond is $229,917, or $13.76 per water connection, being an $8.76 monthly increase. The same amounts using tax revenue would result in a $0.0933/9100 increase. On a $250,000 home, that would be a monthly increase of $19.43. As stated above, there are countless scenarios. I believe step one is determining the debt service amount we are comfortable with, then backing into what we can accomplish with that amount. APPENDIX Outlook TML Summary of H.B. 1453 From Government Finance Officers Association of Texas <tmladmin@tmlorg> Date Thu 3/20/2025 1:03 PM To Amanda Hill mandahledyelm.sonu III GFOAT Government Finance Officers Association of Texas H.B. 1453 is set for a hearing in the House Pensions, Investments, and Financial Services Committee on Monday morning at 10 a.m. Here is the meeting notice. H.B. 1453 has all of the CO components that were included in H.B. 19. Here's our summary: H.B. 1453 (Tepper) - Local Debt: would, among other things: 1. prohibit the governing body of an issuer, including a city council, from authorizing an anticipation note to pay a contractual obligation to be incurred if a bond proposition to authorize bonds for the same purpose was submitted to the voters during the preceding five years and failed to be approved; 2. allow the governing body of an issuer to authorize an anticipation note that the governing body is otherwise prohibited from authorizing under Number 1, above, if the note is issued: (a) to mitigate the impact of a public health emergency in the jurisdiction of the issuer that poses an imminent danger to the physical health or safety of the residents of the issuer; or (b) to finance the cleanup, mitigation, or remediation of a natural disaster in the jurisdiction of the issuer subject to a state of disaster declared by the governor or the presiding officer of the governing body of an issuer; 3. prohibit a city from issuing a certificate of obligation (CO) for the following types of public improvements: (a) a public safety facility, including a police station, fire station, emergency shelter, jail, or juvenile detention facility; (b) a judicial facility; (c) an administrative office building housing the governmental functions of the city or county; (d) an animal shelter; (e) a library; (f) a park or recreation facility that is generally accessible to the public and is part of the city or county park system; (g) the rehabilitation, expansion, reconstruction, or maintenance of an existing stadium, arena, civic center, convention center, or coliseum that is owned and operated by the city or county or by an entity created to act on behalf of the city or county; (h) constructing or equipping a jail; and () constructing a bridge that is part of or connected to a county road or an approach to such a bridge; 4. allow the governing body of an issuer to authorize a CO only as necessary to pay a contractual obligation, or professional services associated with an obligation, to be incurred for the construction, renovation, repair, or improvement of a public work that the governing body determines is necessary to: (a) comply with a state or federal law or rule, but only if the issuer has been officially notified of noncompliance with the law or rule; (b) to mitigate the impact of a public health emergency in the jurisdiction of the issuer that poses an imminent danger to the physical health or safety of the residents of the issuer, sO long as the governing body adopts a resolution describing the conditions and circumstances of the public health emergency and makes a determination that the emergency exists; (c) to finance the cleanup, mitigation, or remediation of a natural disaster in the jurisdiction of the issuer subject to a state of disaster declared by the governor or the presiding officer of the governing body of an issuer; or (d) to comply with a court order; 5. provide that, if necessary because of a change order for a contractual obligation incurred for the construction, renovation, repair, or improvement of a public work, the governing body of an issuer may authorize the issuance of COs in an amount not to exceed 15 percent of the contractual obligation; 6. require the governing body of an issuer that authorizes the issuance of COs to enter into a contract for the construction, renovation, repair, or improvement of a public work for which the issuance is authorized not later than the 180th day after the date the governing body authorizes the issuance; 7. prohibit a city from issuing a CO for the payment of contractual obligations to be incurred in restoring historic structures; 8. reduce the maturity period of a CO from 40 years to 30 years; 9. prohibit the governing body of an issuer from authorizing certificate of obligation to pay a contractual obligation to be incurred if a bond proposition to authorize the issuance of bonds for the same purpose was submitted to the voters during the preceding five years and failed to be approved; 10. allow the governing body of an issuer to authorize a CO that the governing body is otherwise prohibited from authorizing under Number 9, above, if the note is issued: (a) to mitigate the impact of a public health emergency in the jurisdiction of the issuer that poses an imminent danger to the physical health or safety of the residents of the issuer; or (b) to finance the cleanup, mitigation, or remediation of a natural disaster in the jurisdiction of the issuer subject to a state of disaster declared by the governor or the presiding officer of the governing body of an issuer; and 11. lower the protest petition threshold to force an election on the issuance of a CO from five percent of the qualified voters of the issuer to two percent of the registered voters of the issuer. If you have any comments or expertise, please email Bill Longley at bili@tml.org and Martie Simpson at martie@gfoat.org. Government Finance Officers Association of Texas i 1821 Rutherford Lane Suite 400 I Austin, TX 78754 US Unsubscribe I Constant Contact Data Notice GOVERNMENT CAPITAL EGRAT March 21, 2025 Ms. Amanda Hill mandsnt2anasun City Manager 124 Moody Street City of Mason (325) 347-6449 Dear Amanda, Thank you for the opportunity to present a budgetary inancing illustration for equipment acquisitions for the City of Mason. I am submitting for your review the foilowing proposed structure: LENDER: Government Capital Corporation ISSUER: City of Mason TX FINANCING STRUCTURE: Public Property Finance Contract issued under Local Government Code Section 271.005 EQUIPMENT: (10) public works vehicles and compactor EQUIPMENT COST: $600,000.00 ANNUAL PAYMENT TERM: 5 Years 7) Years 10Years TRUE INTEREST COST: 5.568% 5.499% 5.410% PAYMENT AMOUNT: 5140,767.97 5105,574.86 $79,257.39 PAYMENTS BEGINNING: One year from funding, then annually Financing for these prajects would be simple, fast aud easy due to tie face Chat: We have an existing relationship with you and have your financial statements on fiie, expediting the process. Please keep in mind we may also need currenc year statements. We can provide familiar documentation for your legal counsel. The above proposal is subject to audit analysis, assumes bank qualification and mutually acceptable documentation. The terms outlined herein are based on current markets. Upon credit approval, rates may be locked for up to thirty (30) days. If funding does not occur within this time period, rates will be indexed to markets ac such time. The above payment amount includes a fee of $1295.00 to cover applicable fees for issuance expense including underwriting, documentation and legal. Our finance programs are flexible and as always, my job is to make sure you have the best possibie experience every time you interact with our brand. We're always open to feedback on how to make your experience better. If you have any questions regarding other payment terms, frequencies, or conditions, please do not hesitate to call. I can be reached at 800-883-1199 or direct 817-722-0227 or via email Marti.s SaulsBgovcap.com. With Best Regards, Hont Swb MARTI SAULS, MUNICIPAL FINANCE SPECIALIST Thet transacton. descnoed arain 5 an arm siengen. commannarl ansacs Deceen : - w c C pourase : provided soely n asponse ya cesha Texas Water Development Board Llustrative Lending Rate Memorandum Mar - 14, 2025 The Texas Water Development Board's llustrative Lending Rates (ILR), shown as of the above date, assume level debt service, and are subject to change and availability of funds. Actualrates will vary depending on length, cime of closing and structure. For Clean Water State Revolving Funds CWSRF) and Drinking Water State Revoiving Funds (DWSRF), actual rates will also depend upon the entity's corresponding rating. These rates are listed for comparative and marketing purposes only. Also included here are the 2024 State Water Implementation Fund for Texas (SWIFT) rates for the current funding cycle. For assistance, please look up contact information for your Regional Team. State Revolving Funds for Projects in the SFY 2025 Intended Use Plan Clean Water State Revolving Fund - 20 Year Term Equivalency CWSRF Estimated Rates Non-Equivalency CWSRF Estimated Rates Rating Market TWDB2,3 Rating Marketl TWDB2.3 AAA 3.59% 2.15% AAA 3.59% 2.33% AA 3.72% 2.23% AA 3.72% 2.42% A 3.92% 2.35% A 3.92% 2.55% BAA 4.29% 2.57% BAA 4.29% 2.79% Clean Water State Revolving Fund - 30 Year Term Equivalency CWSRF Estimated Rates Non- Equivalency CWSRF Estimated Rates Rating Market' TWDB23 Rating Marketl TWDB2.3 AAA 4.36% 2.62% AAA 4.36% 2.83% AA 4.49% 2.69% AA 4.49% 2.92% A 4.63% 2.78% A 4.63% 3.01% BAA 4.91% 2.95% BAA 4.91% 3.19% Drinking Water State Revolving Fund - 20 Year Term Equivalency DWSRF Estimated Rates Non-Equivalency DWSRF Estimated Rates Rating Market' TWDBL3 Rating Market TWDB23 AAA 3.59% 2.33% AAA 3.59% 2.51% AA 3.72% 2.42% AA 3.72% 2.60% A 3.92% 2.55% A 3.92% 2.74% BAA 4.29% 2.79% BAA 4.29% 3.00% Drinking Water State Revolving Fund - 30 Year Term Equivalency DWSRF Estimated Rates Non-Equivalency DWSRE Estimated Rates Rating Marketl TWDB2.3 Rating Market TWDB2.3 AAA 4.36% 2.33% AAA 4.36% 3,05% AA 4.49% 2.92% AA 4.49% 3.14% A 4.63% 3.01% A 4.63% 3.24% BAA 4.91% 3.19% BAA 4.91% 3.44% Table Legend 1. Market rates applicable to the State Revolving Funds utilize the 13th and 20th year MMD rates, converted to yield to maturity, for the corresponding rating to approximate 20 and 30-year terms, respectively. 2. TWDB rates utilize the 13th and 20th year MMD rates for the applicable credit rating, converted to yield to maturity, and reduced by a percencage subsidy as shown below, to approximate 20 and 30-year terms, respectively. Interest Rate Subsidies All Ratings Rating Equivalency Non-Equivalency CW/SRF 40% 35% DWSRF 35% 30% 3. Origination fee (not applicable to principal forgiveness) is 1.75% for CWSRF or 2.00% for DW/SRF. For more information on CWSRF or DW/SRF programs. click links below: htps/www.twdb.tesgoV/lnanca/errograms/CWSRE htps/www.twdb.texgov/fnancalorrograms/DWSREZ General Obligation Programs - Estimated Rates Type of Funds Terms Market TWDB' Difference Development Fund (Tax Exempt) 20 4.39% 4.04% 0.35% Development Fund (Tax Exempt) 30 4.78% 4.46% 0.33% Development Fund (Taxable) 20 6.05% 5.31% 0.25% Agricultural Loans (Taxable) 7 5.17% 4.09% 1.08% EDAP (Tax Exempt) 20 4.39% 3.60% 0.79% EDAP (Taxable) 20 6.067 4.91% 1.15% Table Legend 1. Market GO rates are calculated from sample level debt service schedules using the BAA-rated MMD tax- exempt and taxable scales, as appropriate. 2. TWDB GO rates are calculated from sample level debt service schedules using TWDB-adoptedrate scales.