- - City Council Workshop Meeting A MEETING MINUTES " March 24, 2025, at 6pm - 2801 Ranch RD 1869 Liberty Hill, Texas & 78642 PowN. BIO City Council Present: Crystal Mancilla Diane Williams Wade Ashley (arrives 6:05 PM) Michael Helbing Jacquetta Thayer Amanda Young City Council Absent: City Staff Present: Paul Brandenburg, City Manager Mike Etienne, Deputy City Manager Elaine Simpson, City Secretary James Herrera, Interim Public Works Director Jeff Ringstaff, Police Chief Josh Armstrong, Director ofFinance Katie Amsler, Director of Communications and Community Engagement Trey Evans, Water Superintendent Candice Scott, HR Director McKenzi Hicks, Interim Director of Planning and Development Christian Kurtz, Exec. Director of Liberty Hill Economic Development Corporation Tracy Ventura, Court Administrator, Municipal Court of Record #1. Matt Brown, Wastewater Superintendent JR Pierce, SCADA Manager Aaron Eger, Staff. Accountant NOTICE Notice is hereby given that a Special Meeting oft the City Council of Liberty Hill, Texas has been called for thej purpose of evaluating information, determining priorities, and making financial decisions needed to prepare to draft a proposed budget for the upcoming City Fiscal Year (FY) 2025-2026. The city's budget year runs annually from October 1st to September 30th. In order to begin preparations for designing a budget for the next year, customarily the City Council will hold what is commonly called a Budget Kick-Off Meeting'. At this meeting, Council Members start discussing priorities and estimating what the City's financial needs will be for next year. Under the Home Rule Charter Section 4.04 (5) the City Manager shall: Prepare and submit the annual budget and capital programs to the City Council, and implement the final budget approved City Council Budget Kick Off Workshop Meeting March 24, 2025, meeting minutes Page 1 of 5 by Council to achieve the goals of the City. Under Section 4.04 (8) the City Manager shall Keep the City Council fully advised as to the financial condition and future needs of the City. 1) CALL TO ORDER The City Council Special Called meeting was called to order by Mayor Mancilla at 6:01 PM. at the City Municipal Court / Council Chamber at 2801 Ranch Road 1869, Liberty Hill, TX. A quorum was established, and all members were present. Mayor Mancilla offers thanks to the city staff for the work they have and is investing in creating an excellent proposed budget for the City. 2) PUBLIC COMMENTS Regarding items not on this agenda/Public Comments: Those desiring to speak on a topic not listed on the agenda, please complete a speaker form and present to the City, Secretary before the meeting. Speakers will have three minutes each to speak, this time cannot be transferred or. shared. Council members may not take action during this item and any responses will be limited to factual statements, recitation ofe existing policy, or request for the topic to be placed on a future agenda. Regarding topics listed as an agenda item/During specific agenda item: Council requests that speakers complete a speaker form, indicate which agenda item they are interested in speaking about, and submit form to the City Secretary before the agenda item is addressed. Speaker forms may be emailed to the City Secretary before the meeting at simpson@lberpalicgow There were no public comment speakers. 3) REGULAR AGENDA a) City Council will discuss the overall Municipal Budget Process related to establishing budget priorities, setting budget goals, and setting the ad valorum (also known as property tax) tax rate for the City's upcoming fiscal year (FY) 2025-2026 Budget. (P. Brandenburg, J. Armstrong) City Manager Brandenburg introduçed the overall topic and the agenda item. He stressed the importance of the city's budget, which is the main policy document that the City Council adopts. The budget assures fair treatment for taxpayers and rate payers alike. Mr. Brandenburg stressed the importance of the City Council having time to review and get comfortable with the budget. For the last few years, the General Fund has had healthy reserve funds. The newly adopted Utility impact fees will be able to provide the revenue to build needed infrastructure. Lastly, City Manager Brandenburg noted the importance of everyone working together to build the best budget possible. City Council Budget Kick Off Workshop Meeting March 24, 2025, Bheeting minutes Page 2 of 5 Mr. Brandenburg turned the meeting over to Mr. Josh Armstrong, Director of Finance, who lead the discussion of the PowerPoint presentation. Director Armstrong noted that he is a new face at the City, having come on board in December. He explained that there will be some new processes this year, some because he is now on staff, and some because the city is now utilizing the ClearGov software for budgeting purposes. This software will make reporting and updating the proposed budget faster and more efficient. Mr. Armstrong stressed that the budget is part of the planning process for the city. Although it is always preferable to be planning for multiple years, the nature of the budget is that it is a 'one-year' policy plan. Mr. Armstrong went page by page through his PowerPoint presentation (see Exhibit 'A' to these meeting minutes) and noted a few other items as he went along: This year we need to fix the errors that were made when the Downtown TIRZ was first established. He compiled a list of what the City Council members sent to Paul as their' 'main priorities- highest priority again this year is Water, Staffing and Staff support, Accountability to the Community. This year the city will establish the Key Performance Indicators (KPI) needed to truly measure outcomes and not just outputs. There will be more concentration on implementation of the Ordinançes and Plans that are already existing. There will be improvements made with the use of our Legal Services. We will improve Follow Through. One means to achieve this will be through streamlining processes. It is important that we concentrate specifically on getting the Home Rule Charter implemented, continue Dark Skies, establish procedures for staff to manage the city contracts, continue excellent project management, track performance of vendors, Implement the IT plan, and Document Management through DocuNav / Laserfishe; starting with the office of the City Secretary. (The goal is to get the city staff all on Laserfiche by end of the year.) The City Council members agreed with these points and offered a few additional thoughts: The importance of our Wastewater, not just Water Department. The need to evaluate all of the city's professional services legal, engineering, etc. The need to review the structure of Parks Department and Facilities being under Communications. There was a discussion about last year's effort to be conservative regarding revenue estimates due to the volatility oft the Sales Tax issue. There were also some expenditures which were not expected to go from the previous budget year and roll into the current one. It is more difficult to plan for multi- year projects such as the Main Street Roundabout. There was an extended discussion about budgeting for the Capital Improvements Plan projects. They must be correctly scheduled, planned and the expenses booked correctly. City Council Budget Kick Off Workshop Meeting March 24, 2025, 8neeting minutes Page 3 of 5 Regarding Property Tax, Mr. Armstrong provided the Council with 4 years' worth of data on the Property Tax rates. For the last few years there has been a slight increase, but the goal seems to have been trying to keep revenue steady. Mr. Armstrong then discussed page 18 of the PowerPoint presentation, where there was an infographic showing the Tax Stack' for the City ofLiberty Hill voters. This bar chart shows the total amount the citizens have been paying and which governmental entity the money went to. It was discussed that the City Council is requested to advise city staff on their goals for the property tax. If city staffknows the goals that Council has for the money, staff members can calculate the amount oft taxes that will be needed. There was a brief discussion of'new factors' that will affect the 25-26 budget, such as the new Tax Sharing agreement between the City and the Williamson County Emergency Management District #4 (ESD#4). Also, the need to begin planning for cost ofthe Advanced Water Purification Facility (AWPF). This AWPF is another project that will be extremely expensive and will have to be budgeted for, and construction done as a multi-year project for the Utility Fund. There was a discussion about the philosophy of Not supporting General Fund with Utility Funds, or vice-versa. The goal should be for Funds to be self-supporting. City Council members proposed that although they would like to not have to raise taxes, it was going to be important to fund the projects that are being planned, and to raise enough revenue to achieve the goals. Additionally, there may be new legislation coming from Texas Legislature that will affect our budgeting process in significant ways. Council and staff members will continue to watch these bills through the process. There was a quick review of some of the budget requests left over from last year that could not then be funded. Some of these requests are for staffing. City Manager Brandenburg explained he is working with all departments to get a five year plan going for staffing estimates. It was discussed that staffing levels should be based on workload, not other cities' staffing levels. Although the priorities of the Enterprise Funds were not addressed tonight, that information is coming, as well as further requests from Department Heads for what is needed. The meeting wrapped up with a short discussion about 'Next Steps.' One priority for 'Next Steps' is to get the CIP budget designed. It will be reviewed in May by the Capital Improvements Advisory Commission (the Planning and Zoning Commissioners acting in their capacity as CIAC). Regarding the proposed dates for budget meetings, it was noted that some of the proposed dates conflict with Planning and Zoning scheduled meetings, or with Liberty Hill University. The proposed dates will be reviewed again and brought forward to City Council for finalization. City Council Budget Kick Off Workshop Meeting March 24, 2025, Aneeting minutes Page 4 of 5 4) ADJOURNMENT Given there were no further agenda items and hearing no objections from the Council, Mayor Mancilla adjourned the meeting at 7:04 PM. Approyed by City Council at their meeting on the gth of April 2025, by a vote of GAyes, ONays and PAbstentions, with being absent. Cusry Dan / alla Mayer Crystal Mancila Attest: ame mpoon Elaine Simpson City Secretary * * * * PRPOR TEC I City Council Budget Kick Off Workshop Meeting March 24, 2025, Sneeting minutes Page 5 of 5 Exhibit A 3.24.2025 Meeting minutes " Kickoff F Budget LH TX S FY 2025-2026 3 % March 24, 2025 / ?0 - WN BIO FY 25-26 Budget Kickoff 1 - We are here 2- Council Priorities 3- Property Taxes 4 - - Next Steps & . o 5 w 2. BIO FY 2023-2024 Pursuit of additional surface and ground H, water resources for the community Completion of the Downtown Masterplan and streetscape - " - Completion of City Council approved transportation LH TX projects Continuation of the City's facility planning for S a public safety complex and future municipal 3 office space % Increased water conservation strategies, programs, and education / ?o W N BIO Creation of a Tax Incremental Reinvestment Zone for Downtown 3 FY2023-2024 Revenue & Expense Budget VS. Actuals for Major Funds 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 - I - - - - 2,000 - General Fund Wastewater Sewer Water GF CIP Utility CIP Revenue Budgeted a Revenue Actual a Expense Budgeted a Expense Actual & a & H, r 3 w N BIO Home Rule Charter Election Added New Full-Time Positions Public Safety Vehicle Replacement FY 2024 - Dark Skies Ordinance 2025 Selected New IT Firm Document Management Solution j w N5. BIO & Council Priorities & tx j & W N6., BIO Water Water Sources Funding for Infrastructure SCADA and Cybersecurity Staffing & Staff Support Staff, Pay, and Benefits Facilities Planning Council Improve Culture of Accountability Priorities Community Accountability Implement Downtown Master Plan Continue UDC Rewrite Street and Thoroughfare plans Other Priorities Create KPIs and Metrics Implementation of Ord. and Plans Improve Legal Services & RTY # Streamline Processes 5 w N - BIO Follow Through (From FY 2025-2026) Implement and uphold Home Rule Charter Continue with Dark Skies Transition Contract Management, Project Management, Vendor performance Council tracking Implement IT Plan Priorities Document Management ERP Upgrade PC/Phone/AV Upgrades Finance Improvements Implement ClearGov and improve budget process Policy and Internal controls Asset Management 6 - - / W . BIO Property Tax . : " : & & W N. BIO Tax Rates and Definitions Property Tax Comparison: FY 2021- 2022 FY 2022 - 2023 FY 2023 - 2024 FY 2024- 2025 Proposed Property Tax Rate 0.454559 0.454559 0.454559 0.483029 No New Revenue Rate 0.390124 0.372087 0.387921 0.496771 No New Revenue M&O Rate 0.266956 0.234285 0.266766 0.317979 Voter Approval Rate 0.455934 0.407964 0.441151 0.494850 De Minimis Rate 0.531643 0.459916 0.477464 0.525914 Debt Rate 0.179635 0.164105 0.165049 0.165049 & B IY " X F a w 1. BIO No-New- The no-new-revenue tax rate enables the public to evaluate the relationship between taxes for the prior year and for Revenue the current year, based on a tax rate that would produce the same amount of Rate taxes if applied to the same properties taxed in both years. - # - 5 - w 11. BIO & Voter- The voter-approval tax rate is a calculated maximum rate allowed by law Approval without voter approval. Most taxing units calculate a voter-approval tax rate that Rate divides the overall property taxes into two categories - M&0 and debt service. 9 a B 1 # 5 - w 12. BIO & The de minimis rate is a tax rate calculation designed to give smaller taxing units, including cities with a population of less than 30,000, some De flexibility to budget for extraordinary costs that may not be possible under the Minimis three and a half percent voter-approval tax rate. The de minimis rate is the sum Rate of a taxing unit's no-new-revenue M&0 rate; the rate that, when applied to a taxing unit's current total value, will impose an amount of taxes equal to $500,000; and a taxing unit's current debt rate. 9 & RTY * - 5 & w 13. BIO The Debt Rate, also known as the Interest and Sinking (1&5) Tax Rate, is the tax rate that, when applied to the City's Debt Rate current tax roll levies the appropriate amount of funds in the following fiscal year to cover interest and principal on bonds and other debt secured by property tax revenues. : * j & w 14. BIO Maintenance The Maintenance and Operations (M&0) and Rate, is the tax rate that funds the day- Operations to-day operations of the municipality, including salaries, utilities, and other (M&0) Rate operational costs. "e / w 15. BIO City of Liberty Hill Tax Rates Property Tax Rates 0.600000 0.500000 0.400000 0.300000 0.200000 0.100000 FY 2021 2022 FY: 2022 2023 FY: 2023 2024 FY 2024- 2025 - No New Revenue M&O Rate - Debt Rate (1&S) Property Tax Rates: FY 2021 - 2022 FY 2022 - 2023 FY 2023 - 2024 FY 2024- 2025 No New Revenue M&O Rate 0.274924 0.290454 0.289510 0.317980 Debt Rate (1&S) 0.179635 0.164105 0.165049 0.165049 & & RTY Total Tax Rate - " 0.454559 0.454559 0.454559 0.483029 / - 5 a ? w 16. BIO City of Liberty Hill Tax Revenue Property Tax Revenue $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 FY: 2021 2022 FY: 2022 2023 FY: 2023- 2024 FY 2024 2025 - No New Revenue M&O Rate a Debt Rate (1&S) Property Tax Rates: FY: 2021 - 2022 FY 2022 - 2023 FY 2023 - 2024 FY 2024 - 2025 No New Revenue M&O Rate $ 1,777,250 $ 2,394,775 $ 3,439,660 $ 3,707,203 Debt Rate (1&S) $ 1,161,253 $ 1,353,035 $ 1,960,943 $ 1,924,253 ERTY 9 Total $ 2,938,503 $ 3,747,810 $ 5,400,603 $ 5,631,455 " $ & Year over Year Increase 27.54% 44.10% 4.27% % 8 Towl7. BIO City of Liberty Hill Tax Stack Property Tax Rates for Liberty Hill Residents 2021-2024 2.500000 2.000000 1.500000 1.000000 0.500000 2021 2022 2023 2024 a City of Liberty Hill a Liberty Hill ISD a Williamson County a Williamson County RD/FM - Williamson County ESD No. 4 & B T < 5 & 4 w 18. . BIO Next Steps o & - 3 - - / w 19. BIO Staff Priorities FTES Salary & Costs Position FTE Benefits w/position Total Costs Deputy City Secretary 1 84,954.73 3,750 88,705 Traffic/Patrol Officer 4 377,703.16 164,510 542,213 Parks, Recreation, & Facilities Maintenance Tech I/II/III 1 78,209.64 500 78,710 Maintenance Tech 1 Downtown Manager 1 106,863.15 4,750 111,613 Communication Specialist 1 83,931.64 3,700 87,632 Street Maintenance Technician 1 59,395.70 87,650 147,046 Building Inspector 1 HR Coordinator/generaist 1 FTETotal: 1,022,664 & - A 5 w . BIO Staff Priorities Supplemental Requests Request Costs Development Services Thoroughfare Plan Study 134,000 Wage/STEP increase to employee increased duties 10,000 Streets and Drainage Drainage Master Plan Update 197,100 Roadway Capital Improvement Plan & Impact Fee Study 307,940 Municipal Court AV Upgrades for Municipal Court Building Phone/Office Equipment Security/Facility Upgrades for Municipal Court Building Community Engagement Festival Infrastructure trash cans, restrooms, pedicabs, barricades. Additional crowd control securityfor Christmas Parade o & T - . - 5 & o w R1. BIO Staff Priorities Parks & Recreation Bat wing mower Park cameras Tie irrigation into Cityof Georgetown water Remodel concession stand for Maintenance break room to accommodate water runoff Resurface splash pad and possibly pool Create Parks Master Plan Facilities Maintenance Create separate space for pool chemicals Downtown New Christmas lights Continuei implementing Downtown Master Plan CIP projects Police Duty Weapons and Rifles, 3 each, for emergency backup Less Than Lethal Weapons Supplementals Total: 649,040 Replace three aging IT systems Replace six electronic citation writers & RTY < Quartermaster software - equipment inventory management Four additional vehicles 5 & w 22. BIO C Continue to sort and prioritize staff requests in line with council goals Work with departments to build operational budgets Next Revenue modeling for all funds Additional Budget Workshops to refine Steps and balance budget Tax rate process with Wilco Proposed budget Hold public hearing(s) if required - Pass Budget o & - . / w 33. BIO Budget Calendar Calendar for FY 2025-2026 Budget March 2025 FY26 Budget Kickoff - 3/24/2025 Department Budget Needs/Priorities - 3/03/2025 = 3/21/2025 Tax Rate Discussion with Council - 3/24/2025 Meetings with Department Heads - 3/03/2025 - 3/28/2025 April 2025 FY26 CIP Budget Council meetings (cont.) - 4/16/2025 FY26 General Fund Budget Kick-off. 4/1/2025 FY26 General Fund Budget departmental meetings. 4/1/2025 - 4/18/2025 Chief Appraisal for Wilco submits estimated tax roll valuations. 4/30/2025 FY26 CIP Budget Complete. - 4/30/2025 May 2025 FY26 General Fund Budget Council Meetings. - 5/7/2025 Budget Workshop - 5/19/2025 or 5/21/2025 Tax office submits tax rate calculation worksheet. 5/25/2025 June 2025 FY26 General Fund Budget Council Meetings. - 6/25/2025 Budget Workshop = (6/2, 6/3, 6/4) or (6/16, 6/17, 6/18) 6 / w R4. BIO Budget Calendar July 2025 FY26 Proposed Budget filed with municipal clerk (if VAR) (budget adoption August). - 7/31/2025 Chief Appraisal for Wilco submits certified taxable values. - 7/25/2025 Budget Workshop (7/1 7/2), (7/14, 7/15, 7/16) August 2025 Budget officer submits FY26 Tax Rates to Council (NNR, VAR, DeMinimis) (website), publish notice of budget/tax rate hearing (2)(VAR), Council hold a record of vote proposed tax rate (VAR), publish notice tax rate hearing (2)(VAR), budget adoption (VAR), tax rate adoption (VAR), OR budget filed with municipal clerk (if not to exceed VAR)(for budget adoption September). Budget Workshop/PH 8/6/2025, 8/13/2025, 8/20/2025, 8/27/2025 September 2025 Publish notice of budget hearing (2) (not to exceed VAR), Council hold a record of vote proposed tax rate (not to exceed VAR), publish notice of tax rate hearing (2)(not to exceed VAR), budget adoption (not to exceed VAR), tax rate adoption (not to exceed VAR). = 8/8/2025, 8/15/2025 9 & B TY - 1 < & 1 & o w ?5. 1 Questions A " 1H TX 3 R 3 7 4 C PowN BIG 26