Aug 27, 2024 City Council Briefing Session

[1. Call the meeting to order.]

[00:00:05]

GOOD EVENING, LADIES AND GENTLEMEN.

THIS IS THE CITY OF CEDAR HILL BRIEFING SESSION.

IT, UH, IT IS SIX O'CLOCK.

THIS IS AN OPEN MEETING WITH A QUORUM OF THE CITY COUNCIL PRESENT.

UM, THE MAYOR IS OUT OF TOWN AT A CONFERENCE AND WE WOULD LIKE TO KEEP HIM IN OUR PRAYERS.

AND THE FIRST

[2. City Manager Reports: City Council Calendar/Upcoming Events City Operations Conduct a briefing to discuss items for the 7:00 p.m. regular meeting]

NEW ASSISTANT, NEW CITY MANAGER, MELISSA CUMMINGS.

27 DAYS, EIGHT HOURS.

NO, I'M JUST KIDDING.

, IT HAS BEEN ABSOLUTELY AMAZING.

UM, I'M REALLY EXCITED TO BE HERE, MAYOR AND COUNCIL, AND I GENUINELY MEAN THAT.

UM, IT IS AN HONOR TO SERVE AS YOUR CITY MANAGER AND I'M REALLY LOOKING FORWARD TO, UH, NOT JUST TONIGHT, BUT THE FUTURE HEADS.

SO, UM, I DO HAVE A FEW THINGS.

WE HAVE TWO AGENDA ITEMS ON THE BRIEFING SESSION, SO I KNOW IT'S GONNA BE PRETTY PACKED FULL.

SO I'M GONNA TRY NOT TO TAKE ALL OF YOUR TIME THIS EVENING, BUT I DO HAVE A FEW THINGS I WANT TO GO OVER WITH YOU JUST TO MAKE SURE WE'RE ON THE SAME PAGE.

THE FIRST ONE IS THE CITY COUNCIL CALENDAR AND YOUR FYI PACKET.

IF WE CAN KIND OF GO THROUGH SOME KEY ITEMS ON YOUR AGENDA IN THE NEXT SEVERAL WEEKS.

UM, THIS FRIDAY IS THE FINAL TJF BEST SOUTHWEST PARTNERSHIP, UH, SERIES FEATURING THE STATE OF FEDERAL GOVERNMENT AND CONGRESSWOMAN CONGRESSWOMAN JASMINE CROCKETT.

SHE'S GONNA BE THERE TO DO THE STATE OF FEDERAL GOVERNMENT.

UM, I THINK WE HAVE ALMOST ALL OF YOU REGISTERED, UH, AND, AND, AND THE MAYOR.

AND SO WE LOOK FORWARD TO SEEING YOU THIS FRIDAY.

THAT'S THE LAST ONE.

UH, REMEMBER THAT MONDAY IS LABOR DAY AND ALL CITY OFFICES WILL BE CLOSED THE NEXT DAY, TUESDAY, SEPTEMBER 3RD AT 5:00 PM WANNA POINT OUT THAT IS AN EARLY MEETING AT 5:00 PM TO, UH, UH, JUST FOR A BUDGET WORKSHOP FOR THE PUBLIC IMPROVEMENT DISTRICTS.

AND THIS IS THE MAINTENANCE PUBLIC IMPROVEMENT DISTRICTS.

WE HAVE FIVE OF THEM ALL, UH, RESIDENTS IN THE PIDS THAT WE HAVE IN THE CITY HAVE BEEN MAILED, UM, NOTIFICATIONS OF THAT MEETING.

AND SO, UH, THAT TAKES PLACE AT FIVE O'CLOCK AND WE ALLOCATE IT TILL SIX 30, BUT WE DON'T USUALLY TAKE UP THAT FULL HOUR AND A HALF IN AN EFFORT TO GET YOU TO THE NATIONAL NIGHT OUT KICKOFF EVENT AT GRADY LAMB BUILDING, WHICH WILL TAKE PLACE FROM SIX 30 TO SEVEN 30.

WE WILL HAVE A FOOD TRUCK.

IT WON'T BE IN AND OUT BURGER, BUT WE WILL HAVE A FOOD TRUCK IF YOU'RE HUNGRY.

SO BRING YOUR APPETITE.

UM, THURSDAY, SEPTEMBER 5TH, THE CHAMBER IS HOSTING A RIBBON CUTTING FOR OUR NEWEST RESTAURANT, HILLSIDE SOCIAL, FROM 12 TO 1:00 PM AND THEN THAT EVENING, THE MAYOR AND I HAVE ANOTHER FUND, TRUDEAUS AND, AND COFFEE, UH, WITH THE NEW CITY MANAGER AT 5:00 PM ACTUALLY 5:30 PM AT THE NEW TRAFFICKING HICKMAN LIBRARY.

SO HOPEFULLY YOU CAN JOIN US FOR THAT.

AND THEN THAT EVENING WE HAVE CEDAR HILL POLICE ACADEMY OPEN DAY AT GRADING LAMB AT 6 45.

THE, UH, NEXT DAY SEPTEMBER 6TH, THE MAYOR HAS HIS FAMOUS ELEVATE EFFECT PODCAST LAUNCH PARTY AT 6:00 PM AND, UH, THAT IS AT THE NEW LIBRARY AS WELL.

AND THEN THE FOLLOWING DAY, WE HAVE OUR NEXT NEIGHBORHOOD WALK AT STONEHILL.

AS YOU RECALL, THIS IS ONE OF OUR NEWEST NEIGHBORHOODS IN THE CITY, AND THE LOCATION IS STILL DUE TO BE DETERMINED.

WE'RE TRYING TO FIGURE OUT WHERE WE CAN MEET IN THE NEIGHBORHOOD THAT, UM, DOESN'T HAVE RESIDENCE AND THEY WON'T BE UPSET WITH ALL THE PARKING THAT WE'LL DO.

BUT, UM, STONEHILL WILL BE OUR NEXT ONE.

AND THAT'S FROM NINE 30 TO 12.

OF COURSE, ON TUESDAY, SEPTEMBER 10TH, THERE'S OUR NEXT REGULARLY CALLED CITY COUNCIL MEETING.

AND THAT SATURDAY, SEPTEMBER 14TH, WE HAVE SEVERAL ITEMS HAPPENING IN THE MORNING, UM, GOING FROM A COMMUNITY PAPER SHREDDING EVENT, BEST SOUTHWEST EMERGENCY PREPAREDNESS FAIR, OF COURSE, OUR CEDAR HILL FARMER'S MARKET COMMUNITY HEALTH FAIR, BOTH HEALTH FAIR HOSTED BY THE CEDAR HILL INDEPENDENT SCHOOL DISTRICT.

THEN ON THE 17TH, WE HAVE, UH, WE'VE CALLED A SPECIAL CALLED CITY COUNCIL MEETING, AND THAT'S AT 6:00 PM IN THE FOURTH FLOOR, UH, ADMIN CONFERENCE ROOM.

AND THEN ON THURSDAY, WE HAVE TWO EVENTS REGARDING TO THE REGION, UH, NORTH TEXAS COMMISSION'S ANNUAL MEETING REQUIRES AN RSVP.

THIS IS LUNCH MEETING AT LOWE'S, ARLINGTON HOTEL.

UH, ANTICIPATING SEVERAL HUNDRED PEOPLE THERE.

SO IF YOU ARE INTERESTED IN GOING TO THAT, PLEASE LET US KNOW 'CAUSE WE WILL GET YOU RSVP'D.

AND THEN THAT EVENING FROM SIX TO 8:00 PM IS THE TML REGION 13.

IT'S RARE THAT THEY ARE ACTUALLY IN THIS AREA, UM, CLOSEST ENOUGH TO US, BUT THEY'RE AT DALLAS COLLEGE IN LANCASTER, AND THAT REQUIRES AN RSVP.

SO IF YOU'RE INTERESTED IN GOING TO THAT, PLEASE LET US KNOW.

AND I THINK BELINDA AND, UH, JENNIFER, EITHER ONE OF THEM HAVE REACHED OUT TO YOU TO MAKE SURE WE

[00:05:01]

SEPTEMBER 21ST IS, UH, OUR FAMOUS BEST, OUR FIRST BEST SOUTHWEST HISPANIC HERITAGE FESTIVAL.

UM, VERY MUCH LIKE THE JUNETEENTH FESTIVAL.

EACH COUNCIL MEMBER WILL GET A VIP TICKET WITH THEIR, THEIR PLUS ONE AND THE CITY.

THE MAYOR HAS SUBMITTED A MISSES, UM, UH, HISPANIC HERITAGE FESTIVAL HONOREE.

AND, UH, WE WILL SEND THAT OUT AS SOON AS WE, UH, HAVE THE BIO FOR THAT PERSON.

I'LL MAKE SURE YOU ARE AWARE OF WHO THAT PERSON IS.

AND THEN TUESDAY, SEPTEMBER 24TH IS OUR NEXT CITY COUNCIL MEETING.

UM, ON THE, THAT WEEKEND WE HAVE AN ANNUAL NEIGHBORHOOD SUMMIT AT THE TRAFFICKING HICKMAN LIBRARY FROM 9:00 AM TO 1:00 PM SEPTEMBER 28TH.

AND THEN ON SEPTEMBER 30TH IS THE CEDAR HILL CHAMBER GOLF TOURNAMENT.

IF YOU HAVE ANY QUESTIONS ON THAT GOLF TOURNAMENT, IF YOU'D LIKE TO PARTICIPATE, LET US US KNOW AND WE'LL GET YOU WITH THE TEAM.

UH, ONE OF THE FAMOUS EVENTS IN SERIAL, THE NATIONAL NIGHT OUT FROM SIX TO 8:00 PM HAPPENS ON TUESDAY, THE 1ST OF OCTOBER, AND THEN OCTOBER 3RD, MAYOR'S PRAYER BREAKFAST THAT WEEKEND.

SO OCTOBER 5TH, WE HAVE SISTER TO SISTER 5K EVENT FROM EIGHT TO 1230.

AND THEN OCTOBER 8TH IS OUR FIRST COUNCIL MEETING IN THE, THE, UH, ASCO ACTUALLY THE BUDGET YEAR OF 2020, FISCAL YEAR 2025.

AND OF COURSE WE HAVE, UH, TEXAS MUNICIPAL LEAGUE ANNUAL CONFERENCE IN HOUSTON TAKING PLACE ON OCTOBER 9TH THROUGH FRIDAY, OCTOBER 11TH, WHICH THE 11TH IS THE SAME EVENING, WE'LL HEAD BACK HERE FOR OLD SETTLERS REUNION, WHICH TAKES PLACE IN DOWNTOWN.

AND THAT'S AT 5:30 PM AND THEN THE NEXT DAY WE HAVE COUNTRY DAY AT, ON OCTOBER 12TH FROM NINE TO 6:00 PM ON FRIDAY, OCTOBER 18TH, FROM SIX 30 TO 8:30 PM IT SAYS 8:30 AM BUT THAT'S PM.

UH, THE CEDAR HILL CHAMBER WILL HOST THEIR AWARDS GALA AT OUR LIBRARY, AND IF YOU HAVE NOT RSVP FOR THAT, PLEASE LET US KNOW SO WE CAN GET YOU A TICKET.

I THINK WE PURCHASED LIKE TWO OR THREE TABLES FOR, WE'LL GET YOU REGISTERED AND YOUR PLUS ONE IF YOU'RE INTERESTED IN THAT SATURDAY, OCTOBER 19TH.

AND THE E SIMS RECREATION CENTER WILL CELEBRATE THEIR 20TH YEAR ANNIVERSARY.

IT'S, UH, TIME HAS FLOWN, I CAN'T BELIEVE IT'S 20 YEARS ALREADY, FROM 10 TO 2:00 PM THE ALLEN E SIMS, CEDAR HILL RECREATION CENTER ON THAT SATURDAY, THE OCTOBER 19TH.

AND THEN ON TUESDAY, OCTOBER 22ND, WE HAVE OUR NEXT CITY COUNCIL MEETING.

THURSDAY, OCTOBER 24TH.

UM, WE HAVE OUR NEXT QUARTERLY MINORITY WOMEN BUSINESS ENTREPRENEURS AND LOCAL BUSINESS WORKSHOP HOSTED BY THE CITY OF DUNCANVILLE.

WE ARE A PART OF THAT 'CAUSE WE ARE A PART OF THE BEST SOUTHWEST.

AND THAT IS FROM SIX 30 TO 8:00 PM AT THE DL HOPKINS JUNIOR SENIOR CENTER.

AND THEN THE LAST ITEM I'LL KIND OF MENTION, UH, OR ACTUALLY TWO ITEMS IS SATURDAY, OCTOBER 26TH.

THERE'S SEVERAL THINGS TAKING PLACE.

UM, THE BIGGEST ONE, THE, THE, ONE OF THE BIGGEST ONES IS THE CEDAR HILL FARMER'S MARKET IS THE LAST ONE FOR THE SEASON.

AND THEN IN THAT EVENING, WE WILL HAVE SCARE ON THE SQUARE FROM SIX TO 9:00 PM AND THEN TUESDAY, OCTOBER 29TH, WE WILL HAVE A MUNICIPAL DEBT WORKSHOP.

THIS WAS A REQUEST BY ONE OF THE COUNCIL MEMBERS AND WE THOUGHT IT WOULD BE GOOD TO JUST GO AHEAD AND INVITE EVERYBODY IN ADVANCE OF THE, UM, COUNCIL RETREAT IN NOVEMBER JUST TO REORIENT OURSELVES INTO THE INS TAX RATE AND WHAT WE CAN DO ON CO'S TAX NOTES IN OTHER THINGS THAT WILL GIVE THE COUNCIL AN OPPORTUNITY TO DO PROJECTS IN THE FUTURE.

SO THAT IS ON TUESDAY, OCTOBER 29TH FROM SIX TO 8:00 PM AT THE TRAFFICKING HIGMAN LIBRARY.

ANY QUESTIONS ON THE CALENDAR? ANY QUESTIONS OF THE, OF OUR CITY MANAGER? THANK YOU.

ALRIGHT, SO WE'LL MOVE ON ORIENTATION OF THE AGENDA DURING BRIEFING SESSION.

WE WILL HAVE A BRIEFING ON THE BALCON RANCH DEVELOPMENT PUBLIC IMPROVEMENT DISTRICT.

UM, I DON'T WANT TO GO OVER AND STEAL HER THUNDER, BUT OUR LAND USE ATTORNEY JULIE FORT WILL DO A GREAT PRESENTATION ON THIS.

UM, IT'S SIMILAR TO WHAT YOU'VE SEEN IN THE PAST, BUT WE JUST REALLY WANTED TO MAKE SURE THAT YOU ALL HAVE THE OPPORTUNITY TO ASK ANY QUESTIONS OF HER.

AND THEN DURING THE, UM, PUBLIC HEARING, SHE WILL DO THEN COME BACK UP AND DO A BRIEFER PRESENTATION FOR THE PUBLIC THAT'S WATCHING ONLINE IN CASE THEY WANNA SEE WHAT THE PUBLIC HEARING REALLY IS ABOUT.

THEN THE, UH, NEXT ITEM IS ON THE PROPOSED THREE YEAR WATER AND WASTEWATER RATE ORDINANCE.

DURING THE WATER AND SEWER WORKSHOP, WE DID A PRESENTATION BY CHEN AND WE KIND OF WENT OVER THE PROPOSED THREE YEAR RATES.

I THINK THE AVERAGE IS SIX TO 8% INCREASE A YEAR OVER THE NEXT THREE YEARS.

UM, THAT'S SIGNIFICANTLY DOWN FROM THE LAST THREE YEAR RATE ORDINANCE.

AND BECKY SCHAFER IS ACTUALLY HERE.

WE HAVEN'T SEEN HER IN A WHILE FROM NEWGEN TO GIVE THAT PRESENTATION.

WE WILL SEND OUT THAT PRESENTATION TO COUNCIL TO GIVE YOU TWO WEEKS TO REVIEW, AND THEN WE'LL PUT IT BACK ON THE COUNCIL AGENDA ON SEPTEMBER 10TH FOR YOU TO ACTUALLY ADOPT THAT ORDINANCE.

ALL RIGHT, ORIENTATION TO THE REGULAR AGENDA.

WE HAVE PASTOR JACOB BARTOS

[00:10:01]

WE'RE LOOKING FORWARD TO HAVING HIM HERE.

AND THEN WE HAVE A FEW PRESENTATIONS, UH, THE SWEARING IN A BADGE P OF NEWLY PROMOTED POLICE OFFICERS AND FIREFIGHTERS ARE POLICE CHIEF ELI REYES AND BROTHER FIRE CHIEF RAPHAEL REYES WILL DO THOSE, UM, SWEARING IN CEREMONIES AND WE'RE LOOKING FORWARD TO CELEBRATING THOSE, UH, PUBLIC SERVANTS.

WE WILL ALSO HAVE A, UH, AN AGENDA ITEM RECOGNIZING OUR NEWLY, UH, APPOINTED DIRECTOR OF PUBLIC SAFETY, ELI REYES, AS RECIPIENT OF THE 2024 OUTSTANDING CRIME PREVENTION MANAGER AWARD FROM THE TEXAS CRIME PREVENTION ASSOCIATION.

AND I DO NOT WANNA STEAL, UM, PAUL SANDERS'S AMAZING, UM, INTRODUCTION OF THIS.

BUT, UH, WE'RE REALLY PROUD OF ELI FOR BEING NOMINATED AND, UH, AWARDED THIS AWARD.

IT'S GREAT, UH, PUBLICITY FOR HIM THAT'S MUCH DESERVED, BUT ALSO FOR THE CITY OF CEDAR HILL ALTOGETHER.

HE'S AN AMAZING PUBLIC SERVANT.

AND THEN, UH, THE THIRD ITEM ON THE PRESENTATION IS TIA UH, BREWER FROM OUR NEIGHBORHOOD SERVICES DEPARTMENT WILL PRESENT A CERTIFICATE OF APPRECIATION OF MISSION SEA MISSION, CEDAR HILL OUTREACH PROJECTS THAT WERE COMPLETED IN JUNE 20TH, 2024.

WE HAVE OUR CITIZENS FORUM, AND THEN WE HAVE TWO PUBLIC HEARINGS, CASE NUMBER CUP 6 5 3 20 24.

THIS IS A PUBLIC HEARING ON LATKA AND ALLOWING THE SALE OF ALCOHOL BEVERAGES FOR ON-PREMISE CONSUMPTION AND SCUP FOR, UM, KARAOKE ALL INDOOR COMMERCIAL ENTERTAINMENT, THINGS THAT MO A LOT OF OTHER RESTAURANTS HAVE ASKED FOR THAT YOU'VE SEEN BEFORE YOU.

AND, UM, THEY'RE ALL KIND OF LOOKING FOR WAYS TO BRING PEOPLE IN TO ENJOY THEIR FOOD.

THE SECOND PUBLIC HEARING IS, UH, CONSIDER APPROVAL OF RESOLUTION REGARDING, UH, THE ESTABLISHMENT OF THE BALCONES RANCH DEVELOPMENT PUBLIC IMPROVEMENT DISTRICT.

AND THEN WE HAVE OUR FIRST ACTION CONDUCTING A PUBLIC HEARING ON THE PROPOSED BUDGET FOR 24 25.

UM, YOU ALL ASKED US TO PREPARE A COMMUNICATION DOCUMENT FOR THE PUBLIC AND, UH, BEFORE YOU RIGHT IN FRONT OF YOU, YOU HAVE THAT AND IT HAS TWO SIDED, BOTH WITH YOUR PRIORITIES OF THE FIVE BIG ROCKS, THE PUBLIC SAFETY BOND IMPLEMENTATION, PLANNING, DEVELOPMENT, COMMUNICATION, AND COMMUNITY ENGAGEMENT, AS WELL AS AN EXPLANATION OF THE VALUE OF YOUR TAX DOLLAR IN A COMPARISON TAX RATE, KIND OF, UM, UH, ON THE BO ON THE BOTTOM COMPARED TO THE BEST SOW SOUTHWEST CITY'S TAX RATES.

SO, UM, IT'S ACTUALLY REALLY WELL DONE.

ALLISON DOES AMAZING JOB AT COMPILING A LOT OF COMPLICATED INFORMATION IN SUCH A SHORT, COMPILED, SUCCINCT WAY, AND, UM, WILL BE GIVEN THESE OUT TO THE PUBLIC.

UM, IT WILL BE ACCESSIBLE TO THEM ON THE WEBSITE, ON SOCIAL MEDIA.

IT IS ALSO AT THE, UM, CITIZENS FORUM, UM, FORUMS THAT WHEN PEOPLE COME IN AND, UH, IT'S REALLY EASY TO UNDERSTAND.

SO IF, YOU KNOW, HOPEFULLY YOU, YOU ENJOY THAT, THAT WAS A DIRECT CORRELATION TO COUNCIL MEMBERS REQUEST.

ALRIGHT, CONSENT AGENDA ITEMS INCLUDES MEETING MINUTES, A PURCHASE OF MICROSOFT LICENSING LICENSING, APPROVING A NEGOTIATED SETTLEMENT WITH ATMOS ENERGY CORPORATION MID TEXT DIVISION.

AS YOU KNOW, WE'RE A MEMBER OF ATMOS CITY STEERING COMMITTEE, AND WE HAVE LEGAL COUNSEL THAT SPECIFICALLY, SPECIFICALLY NEGOTIATES ON OUR CITY'S BEHALF FOR RESIDENTIAL RATES, FOR GAS SERVICES, GAS ENERGY SERVICES.

AND WE NEGOTIATE ON THE RESIDENTS BEHALF.

AND SO BECAUSE WE'RE MEMBERS OF A CSC, THEY GET LOWER RATES, UM, AS WE NEGOTIATE THEM.

AND IT'S ACTUALLY REALLY GOOD FOR NOT JUST US AS A CONSUMER, AS A CITY, BUT ALSO THE RESIDENTIAL, THE RESIDENTS AND BUSINESSES IN OUR COMMUNITY.

UM, THE ITEM D IS CONSIDERED APPROVAL, A RESIDENT, UH, RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN ESCROW AGREEMENT RELATING TO THE DISILLUSION OF THE BALCONES RANCH DEVELOPMENT PUBLIC IMPROVEMENT DISTRICT.

THIS IS ALL, UM, IN AN EFFORT TO PREPARE FOR THE WORST CASE SCENARIO, WHICH WE ALWAYS LOOK AT BEST CASE SCENARIO AND WORST CASE SCENARIO.

AND IN THE EVENT THE PROPERTY DOESN'T GET SOLD OR THE PROPERTY ISN'T DEVELOPED, THEN ONCE YOU'VE CREATED A PUBLIC IMPROVEMENT DISTRICT ON THAT PROPERTY, IT STAYS ON THAT PROPERTY UNTIL IT'S DISSOLVED.

SO WHAT WE'VE AGREED WITH, UH, THANKFULLY WITH OUR REALLY GREAT LEGAL COUNSEL ON BOTH SIDES, UM, TO DO A DISSOLUTION RESOLUTION, WHICH WILL STAY IN AN ESCROW AGREEMENT IN THE EVENT THE PROJECT IS NOT DEVELOPED.

SO IT WON'T BE ENACTED UNLESS THE WORST CASE SCENARIO OCCURS.

CASE NUMBER F IS APPROVING AN APPLICATION FOR A FINAL PLAT FOR GOT STUFF ADDITION.

THIS IS THE PROPERTY IN DOWNTOWN THAT WAS HEARD BY A HISTORIC DOWNTOWN ADVISORY BOARD, I THINK A YEAR AGO, AND IT WAS RECOMMENDED APPROVAL AS WELL AS BY OUR PLANNING AND ZONING COMMISSION.

AND THEN THE NEXT ONE IS THE SITE PLAN ASSOCIATED WITH THAT SAME PROPERTY.

ITEM H IS FOR AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH FOOD ESTABLISHMENT INSPECTION SERVICE.

[00:15:01]

WE REQUIRE THEM TO HAVE AN INSPECTION OF THEIR, UM, THEIR FACILITIES, AND WE REQUIRE THREE INSPECTIONS PER YEAR, AND THEY ARE CHARGED A FEE FOR THAT.

AND WE ARE CHARGED A FEE FROM THE, UH, THIS INSPECTION SERVICE.

AND THAT'S WHAT THAT IS.

WE'VE DONE THIS EVERY YEAR.

P AND WARREN IS ACTUALLY REALLY GOOD AND THEY SERVE THE CITY AND THE CITIZENS AND THE BUSINESSES REALLY WELL.

ITEM I IS ABOUT, UH, EXECUTING A TRINITY RIVER AUTHORITY REGULATORY SERVICE AGREEMENT FOR FISCAL YEAR 2025 IS, WAS BUDGETED AND WE DO IT EVERY YEAR AS WELL AS ITEM J.

CONSIDER ADOPTING RESOLUTION R 24 7 17 APPROVING AN ASSIGNMENT OF PRIVATE ACTIVITY BOND AUTHORITY OF THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS ON BEHALF OF THE NORTH CENTRAL TEXAS HOUSING AND, UM, HOUSING FINANCE CORPORATION.

WE DID GET A REPORT FROM THEM AND I THINK IT WAS OVER $1.6 MILLION THAT HAVE GONE BACK INTO THE COMMUNITY FROM THIS FUND, THE COMMUNITY OF CEDAR HILL.

SO THE RESIDENTS ARE ACTUALLY BENEFITING FROM IT.

THE STATE, UH, IS AUTHORIZED BASED ON, UM, COUNCILMAN GLOVER SITS ON THIS COMMITTEE AND THE STATE A ACTUALLY PROVIDES THESE FUNDS AND DIVIDES UP THESE FUNDS AND WE GIVE THEM THE AUTHORIZATION TO DO SO.

THE REGULAR AGENDA INCLUDES ADOPTION OF ORDINANCE 20 24 8 28, AND, UH, 8 29 AND EIGHT 30 REGARDING THE ABANDONMENT AND CONVEYANCE OF THREE PORTIONS OF AN EXISTING RIGHT OF WAY OF THE ABIDING PROPERTY OWNERS OF ADDISON HILL SUBDIVISION.

THIS WAS, UM, SOMETHING THAT WE, WE WORKED OUT WITH THE PROPERTY OWNER AND THE DEVELOPER, AND WE ARE ALL MUTUALLY IN AGREEMENT ON.

WITH THAT, I'VE MET 17 MINUTES IF YOU HAVE ANY QUESTIONS ON THE AGENDA, COUNSEL HAVE ANY QUESTIONS OF, UH, OF STAFF.

ALRIGHT, THANK YOU.

THANK YOU MADAM CITY.

NEXT ITEM

[3. Briefing on the Balcones Ranch Development Public Improvement District.]

WE ARE PROUD TO BRING UP MS. UH, JULIE FORT WITH MESSER FORTH.

THANK YOU MAYOR PRO TIM, AND COUNSEL, UM, YOUR BOND COUNSEL JORDAN SAWYER IS ALSO HERE, UM, FOR THIS ITEM.

AND IF YOU HAVE ANY QUESTIONS, UM, HE'LL, HE'S AVAILABLE TO ANSWER THOSE RELATED TO ANY, UM, DEBT ISSUANCE.

I DID WANNA GIVE YOU JUST A, A OVERVIEW OF THE, THE PIT BASICS AND HOW THIS WORKS, AND THEN WHAT YOU'RE BEING ASKED TO DO THIS EVENING ON YOUR REGULAR AGENDA, AND THEN WHAT YOU CAN EXPECT TO SEE IN THE FUTURE IN REGARDS TO, UM, THIS PIT.

SO PIS ARE A CREATURE OF STATE LAW.

THEY ARE AUTHORIZED BY CHAPTER 3 72 OF THE LOCAL GOVERNMENT CODE.

AND SO ALL OF THE RULES THAT REGULATE THEM ARE FOUND, UM, IN THIS ONE LOCATION.

UM, THAT PIT ACT ALLOWS FOR TWO TYPES OF PITS.

AND HERE IN CEDAR HILL, I BELIEVE YOU'RE MORE FAMILIAR WITH THE MAINTENANCE PITS.

UM, MAINTENANCE PIS ARE GENERALLY USED TO MAINTAIN IMPROVEMENTS WITHIN THE PIT.

THE ASSESSMENTS ARE ANNUAL LEVITY ANNUALLY FOR A MAINTENANCE PIT.

AND, UM, BASED ON THE BUDGET AND THE ANTICIPATED COST OF THE PIT FOR THE UPCOMING YEAR.

AND WITH A CAPITAL PIT, IT'S DIFFERENT.

THE CAPITAL PIT, THE ASSESSMENTS ARE LEVIED ONE TIME AT THE BEGINNING, IT'LL BE A FIXED AMOUNT.

IT WOULD NOT, IT WILL NOT CHANGE WHEN A HOMEOWNER BUYS THEIR HOUSE.

THEY KNOW WHAT THE PIT ASSESSMENT IS GOING TO BE EACH YEAR WITHOUT IT FLUCTUATING.

UM, THE REVENUE IS USED TO CONSTRUCT THE PUBLIC INFRASTRUCTURE AND ELIGIBLE COSTS ALSO INCLUDE SOFT COSTS SUCH AS ENGINEERING AND DESIGN AND, UM, THOSE OTHER PROFESSIONAL SERVICES THAT ARE ASSOCIATED WITH THE ACTUAL CONSTRUCTION.

AND THEN THE PI REVENUE IS USED TO REIMBURSE A DEVELOPER FOR THE COST OF THE PUBLIC INFRASTRUCTURE THAT THEY PUT IN AND THEN GIVE TO THE CITY FOR THE CITY TO, UM, MAINTAIN AND OPERATE AND PROVIDE CITY SERVICES.

ANY QUESTIONS ABOUT THE DIFFERENCES BETWEEN THE TWO? OKAY, SO WITH A CAPITAL PIT, A PIT IS NOTHING MORE THAN A DEFINED GEOGRAPHIC AREA THAT IS CONTIGUOUS THAT YOU DESIGNATE WITHIN THE CITY.

UM, AND THAT THE CREATION OF THE PI AND DESIGNATING THAT GEOGRAPHIC AREA IS WHAT YOU'LL BE HAVING A PUBLIC HEARING ON DURING YOUR REGULAR MEETING.

AND THEN IF YOU SO CHOOSE, UM, YOU CAN ADOPT A RESOLUTION THAT WOULD CREATE THE PIT AND DESIGNATE THE GEOGRAPHIC AREA THAT WILL BE WITHIN THIS PIT.

UM, IN THE FUTURE, ASSESSMENTS WILL BE LEVIED ON PROPERTY WITHIN THE PI.

UM, ASSESSMENTS CAN ONLY BE LEVIED FOR

[00:20:02]

SO THESE DOLLARS CANNOT BE USED FOR AN HOA AMENITY CENTER BECAUSE THAT IS NOT A PUBLIC IMPROVEMENT TO BE USED BY ANY MEMBER OF THE PUBLIC.

UH, BUT WATER LINES, SEWER LINES, ROADS, DRAINAGE, THOSE ARE ALL CONSIDERED PUBLIC INFRASTRUCTURE.

AND THOSE WOULD ALL BE ELIGIBLE COSTS TO USE FOR THE, THE PIT DOLLARS.

UM, WHEN SOMEONE BUYS A HOME, THEY CAN PAY THE PIT ASSESSMENT IN FULL OR THEY CAN MAKE ANNUAL PAYMENTS EACH YEAR WITH THEIR ANNUAL, UM, TAX BILL AT, AT THE SAME TIME.

AND SO, UM, THAT IS UP TO EACH INDIVIDUAL HOMEOWNER HOW THEY CHOOSE TO HANDLE THAT.

AND THEN IN THIS CASE, ULTIMATELY IF YOU LEVY ASSESSMENTS, THOSE ASSESSMENTS WILL BE COLLECTED EACH YEAR AND THEN USED TO MAKE THE ANY ANNUAL DEBT PAYMENTS, UM, ON PIT BONDS, WHICH WILL TALK ABOUT IN A MOMENT.

UM, THE OTHER GOOD THING WITH A P IS YOU DO HAVE ADMINISTRATIVE EXPENSES.

THERE ARE THINGS STAFF HAS TO DO.

A LOT OF THAT IS, UM, CONTRACTED OUT TO YOUR PIT ADMINISTRATOR WHO IS P THREE WORKS.

AND THE COST OF ALL OF THAT COMES FROM THE PIT ASSESSMENTS.

IT'S NOT, IT DOESN'T COME FROM YOUR GENERAL FUND OR SOME OTHER FUND OF, OF THE CITY.

SO THE PIT IS KIND OF A, A SELF-FUNDING, UM, STRUCTURE, IF YOU WILL.

SO BIG PIT, BIG PICTURE CONSIDERATIONS WHEN YOU ARE THINKING ABOUT A PIT AND WHETHER TO CREATE ONE IS TO UNDERSTAND THE, THE P IS NOT A SEPARATE POLITICAL SUBDIVISION.

IT WILL NOT HAVE ITS OWN BOARD.

UM, THE, THE CITY COUNCIL IS IN CHARGE OF, UM, ALL FINAL DECISIONS THAT ARE, ARE MADE BY THE, THE PIT.

UM, IT ALLOWS CITIES TO GET PUBLIC INFRASTRUCTURE WITHOUT YOUR RESIDENTS WHO ARE ALREADY HERE HAVING TO PAY FOR THAT GROWTH AND PAY FOR THE INFRASTRUCTURE TO SERVE, UM, NEW RESIDENTS THAT ARE COMING.

UM, AND THEY CAN BE USED AS AN ECONOMIC DEVELOPMENT TOOL.

OBVIOUSLY ADDING ROOFTOPS, UM, CAN SPUR MORE ECONOMIC DEVELOPMENT ACTIVITY WITHIN THE CITY WITH MORE SHOPPERS, HOPEFULLY SOME MORE SALES TAX , UM, DOLLARS FOR SOME NEW RESIDENTS, ET CETERA.

AND THEN OF COURSE, PITS CAN BE USED TO HELP ACCOMPLISH YOUR GOALS THAT ARE IN YOUR COMPREHENSIVE PLAN.

AND THE BALCONES RANCH PROJECT IS A PROJECT THAT WE'VE TALKED ABOUT BEFORE THAT DOES MEET, UM, THE CRITERIA THAT WERE SET FORTH IN YOUR COMPREHENSIVE PLAN OF A TYPE OF A PROJECT, UM, THAT THE CITY WAS HOPING TO SEE AND HAVE DEVELOP HERE.

SO, UM, AND THIS IS SINCE THE PIT IS BEING USED TO HELP FURTHER YOUR COMPREHENSIVE PLAN.

SO A LOT OF PEOPLE TOUCH A PIT.

UM, IT'S, IT TAKES A TEAM, UM, TO CREATE ONE, NEGOTIATE ONE, UM, GET THE DEVELOPMENT AGREEMENT DONE, SELL THE BONDS, AND THEN MAINTAIN THE PIT GOING FORWARD.

UM, THIS IS A LIST OF EVERYONE INVOLVED.

THE, UM, THE THREE AT THE BOTTOM WILL BECOME, UH, MORE INVOLVED WHEN IT BECOMES TIME TO SELL PIT BONDS.

THEIR SERVICES HAVEN'T BEEN NEEDED YET UP TO THIS POINT.

SO IF FREQUENTLY ASKED QUESTION WHEN IT COMES TO PIS IS, HOW DOES A PIT AFFECT THE FINANCES OF, OF THE CITY? AND WHAT HAPPENS TO OUR BONDING CAPACITY IF WE SELL PIT BONDS WITHIN THE PIT? SO FOR THE CITY, THE PIT BONDS ARE NON RECOURSE TO THE CITY.

THAT MEANS YOUR NONE OF YOUR OTHER CITY DOLLARS CAN BE REACHED BY THE BOND HOLDERS IN ORDER TO PAY THAT DEBT.

THE ONLY SECURITY THE BOND HOLDERS HAVE FOR THE DEBT ARE THE ANNUAL ASSESSMENTS THAT WILL BE PAID FROM OWNERS OF PROPERTY IN THE PI.

AND THEN, UM, IF THEY FAIL TO PAY, EACH OF EACH PROPERTY WITHIN THE PIT WILL HAVE A LIEN AGAINST IT FOR THE ANNUAL ASSESSMENTS THAT, UM, COULD BE FORECLOSED ON IF IF NECESSARY.

IT'S NOT A, I'VE NEVER HEARD OF THAT HAPPENING, BUT, UM, THAT, THAT IS THE PROTECTION THAT IS IN PLACE.

UM, SO YOU'RE BONDING CAPACITY FOR OTHER PROJECTS THAT YOU HAVE ON THE HORIZON AND YOU'RE, YOU MAY BE PLANNING FOR, WILL NOT BE AFFECTED BY SELLING PIT BONDS, UM, AT ALL WITH THE CREATION.

UM, I SAID THESE A LITTLE BIT EARLIER, BUT THE PIT WILL PAY FOR ITSELF THROUGH THE

[00:25:01]

A COMPONENT OF THAT WILL INCLUDE ADMINISTRATIVE COSTS AND, UH, P THREE WORKS WE'LL WORK VERY CLOSELY, UM, WITH MELISSA AND CHASITY AND STAFF AND YOUR FINANCE DIRECTOR, ME AND JORDAN.

UM, AS THINGS MOVE FORWARD TO BE SURE ALL OF THE ADMINISTRATIVE THINGS THAT NEED TO HAPPEN WITHIN A P ARE, ARE BEING TIMELY DONE.

SO A CAPITAL P CAN BE FORMED IN SEVERAL DIFFERENT WAYS.

ONE IS JUST A PAY AS YOU GO, YOU GET ANNUAL ASSESSMENTS AND THAT MONEY IS USED, UM, TO EITHER RE REIMBURSE A DEVELOPER OR PAY FOR THINGS.

UM, REIMBURSEMENT BONDS, PID IS USED.

THAT IS WHEN THE DEVELOPER FUNDS THE CONSTRUCTION OF THE PUBLIC INFRASTRUCTURE UPFRONT.

AND THEN BEFORE THE HOMES ARE SOLD AND BEFORE THE CITY ACCEPTS THAT INFRASTRUCTURE, PIT BONDS ARE SOLD TO REIMBURSE THE DEVELOPER FOR THE COST OF THE INFRASTRUCTURE AND THEN THE INFRASTRUCTURE TRANSFERS TO THE CITY.

AND THAT IS WHAT IS, UH, ANTICIPATED FOR THIS PROJECT.

IT IS POSSIBLE DUE CONSTRUCTION BONDS WITHIN A PI WHERE THE BONDS ARE SOLD UPFRONT AND THE DEVELOPER USES THAT BOND MONEY TO THEN DO THE CONSTRUCTION.

SIMILAR, IF YOU'RE FAMILIAR WITH RESIDENTIAL CONSTRUCTION, LIKE A CONSTRUCTION LOAN, UM, IS A GOOD ANALOGY OF HOW THAT FUNCTIONS.

SO THIS IS A, A LIST OF THE MANY THINGS THAT YOUR, UM, PIT ADMINISTRATOR AND AND STAFF WILL DO OVER TIME.

UM, EVEN THOUGH THE ASSESSMENTS STAY FLAT AND THEY DO NOT CHANGE YEAR TO YEAR, THE LAW DOES STILL REQUIRE THAT AN ANNUAL UPDATE BE DONE TO THE SERVICE AND ASSESSMENT PLAN.

THE SERVICE AND ASSESSMENT PLAN IS THE DOCUMENT THAT'S GONNA LAY OUT, UM, THE INFRASTRUCTURE AND PUBLIC IMPROVEMENTS THAT WILL BE BUILT AND THE ESTIMATED COST FOR THOSE IMPROVEMENTS, AND THEN HOW MUCH IN PIT ASSESSMENTS ARE ANTICIPATED, UM, TO PAY FOR THOSE COSTS.

AND AS TIME GOES ON, UM, YOU'LL UPDATE THAT WITH THINGS THAT HAVE ACTUALLY HAPPENED OVER THE YEAR, UM, TO GET ACTUAL DATA IN THERE.

THERE ARE ANNUAL REPORTS REQUIRED TO BE FILED, UM, COORDINATION WITH THE CENTRAL APPRAISAL DISTRICT ON GETTING THE ASSESSMENTS ON THE TAX BILLS AND, UM, COLLECTING AND REMITTING THAT MONEY, UH, ET CETERA.

AND THEN ALSO VERIFYING, YOU KNOW, THAT THE BONDS, ALL THE TERMS OF THE BONDS ARE BEING MET AND COMPLIED WITH.

SO THIS IS A LIST OF, UM, DOCUMENTS THAT SOME, THE DEVELOPMENT AGREEMENT YOU'VE ALREADY SEEN.

UM, THE OTHERS WILL COME IN THE FUTURE.

ONE WILL BE THAT SERVICE AND ASSESSMENT PLAN AND THE ASSESSMENT ROLE FOR WHAT PEOPLE ARE GONNA PAY IN ASSESSMENTS WILL BE INCLUDED IN THAT DOCUMENT.

UM, THE BOND INDENTURE IS SOMETHING, UM, THAT JORDAN, HIS TEAM WILL PREPARE, UM, THAT IS REQUIRED TO GET APPROVAL OF THE ATTORNEY GENERAL.

AND THEN, UM, IT HELPS TO FACILITATE THE ACTUAL SALE AND CLOSING OF THE BONDS.

UM, A CONSTRUCTION AND FUNDING AGREEMENT, WHICH WILL, UM, SPECIFY HOW THE BOND MONEY CAN BE USED, WHAT, WHAT CONSTRUCTION COSTS ARE GONNA BE ELIGIBLE IN THIS PARTICULAR PIT.

AND THEN, YOU KNOW, YOU'LL HAVE ASSESSMENT RECONCILIATION AND ANY DELINQUENCY REPORTS, UM, SHOULD THAT HAPPEN.

AND THEN THERE'LL ALSO BE, UM, MONTHLY REPORTS THAT'LL BE PROVIDED.

UM, ON THE OTHER DOCUMENTS, THESE ARE PRIMARY RELATED TO THE BONDS.

UM, THE HOME BUYER'S DISCLOSURE DOCUMENTS, THOSE ARE WRITTEN DISCLOSURES THAT ARE GIVEN TO SOMEONE BEFORE THEY BUY A HOUSE WITHIN THE PI.

UM, STATE LAW REQUIRES THEM AND THE, UM, THE, THE DEVELOPER WILL HELP ENSURE COMPLIANCE WITH THAT AND THAT THAT IS DONE SO THAT, UM, NOBODY CLOSES ON A HOME WITHOUT BEING TOLD THEY'RE GONNA HAVE THIS EXTRA ASSESSMENT THAT THEY'RE GONNA HAVE TO PAY.

AND THEN OF COURSE, THEIR LENDER IS GONNA TAKE THAT INTO ACCOUNT, UM, AS WELL, UM, SHOULD THEY BE GETTING A MORTGAGE INSTEAD OF A A CASH BUYER.

ALL RIGHT.

ANY QUESTIONS ABOUT CAPITAL PITS? ALL RIGHT, LET ME GET COUNCIL MEMBER MCCURDY.

YES.

UM, THANK YOU FOR THE, THE PRESENTATION.

I DO HAVE A A QUESTION ABOUT THE, THE ASSESSMENTS ON THE INDIVIDUAL PROPERTIES.

SO THERE'S GONNA BE BASICALLY A, AN OVERALL BILL FOR

[00:30:01]

WILL THE ASSESSMENT FOR THE INDIVIDUAL PROPERTIES BE BASED UPON LOT SIZES OR IS IT JUST A, A SET AMOUNT FOR, FOR EACH PROPERTY? SO EACH PROPERTY IS ASSESSED $35,000 REGARDLESS OF SIZE, OR HOW DOES THAT WORK? THEY ARE BASED ON LOT SIZES.

SO THE, THE LARGER LOTS WILL HAVE A LITTLE BIT LARGER OF ASSESSMENT.

UM, AND I'LL USE JUST AS AN EXAMPLE, UM, FOR SIMPLE MATH, SAY A PIT ASSESSMENT ON A CERTAIN SIZE LOT IS $30,000 AND YOU HAVE A, UM, A 30, YOU HAD A 30 YEAR PI, THE ASSESSMENT WOULD BE A THOUSAND DOLLARS A YEAR, UM, UNTIL THE PI DEBT IS PAID OFF, OR, OR THEY COULD PAY IT ALL UP FRONT IF THEY WANT.

SO THE HOMEOWNER, THE, THE HOME BUYER WOULD BE GIVEN THAT OPTION UP FRONT.

THEY COULD, THEY COULD, WHEN THEY BUY THE HOME, THEY COULD FINANCE THAT AS PART OF THEIR MORTGAGE.

THEY CAN, IF THEIR LENDER WILL, WOULD THEY GET A DISCOUNT ON THE, ON THE PIT ASSESSMENT IF THEY WERE, IF THEY WERE ALLOWED TO, IF THEY OPTED TO DO THAT, OR, SO THEY WILL GET THE, EXCUSE ME, UH, JORDAN'S OR FULBRIGHT BOND COUNSEL, UH, THEY WILL GET, SAY, PAY THE SAME PRINCIPAL AMOUNT.

SO IT'S NOT A REDUCED PRINCIPLE, BUT THEY'LL HAVE ALL THE INTEREST SAVINGS FOR NOT PAYING THAT PRINCIPAL FOR THAT 30 YEARS.

OKAY.

SO IT'S A THOUSAND DOLLARS A YEAR PLUS WHATEVER INTEREST INTEREST IS IT ON THAT.

OKAY.

SO, SO IT'S NOT A THOUSAND DOLLARS A YEAR, IT'S A THOUSAND A YEAR PLUS INTEREST.

YES.

AND, AND SO THE INTEREST RATE WOULD BE BASED UPON THE, THE BOND RATES PLUS A, A PERCENTAGE ON TOP OF THAT? YEAH, SO THE, THE INTEREST RATES IS GONNA BE BASED ON THE MARKET VALUE.

SO BEFORE BONDS ARE SOLD, IT'S GOING TO BE AN INTEREST RATE THAT'S NEGOTIATED WITH THE DEVELOPER.

UH, UNTIL ONCE WE GO TO SELL BONDS, IT WILL BE WHATEVER INTEREST RATE, UM, THAT WE'RE ABLE TO SELL THE BONDS AT, PLUS A HALF A PERCENT THAT WILL FUND A, UH, RESERVE FUND.

IN THE EVENT SOMEONE DOES PREPAY, WE, IT CREATES AN ACCOUNT THAT WE CAN GO IN AND SAY, WELL, WE EXPECTED TO HAVE THESE $30,000 OVER THE NEXT 30 YEARS, SOMEONE PREPAID IN YEAR ONE.

SO WE HAVE THAT MONEY SET ASIDE TO MAKE SURE WE CAN STILL PAY THE BONDS.

SO WE, BUT WE WOULD NEGOTIATE THAT INTEREST RATE NOW, UH, WE WOULD NEGOTIATE THE INITIAL INTEREST RATE WITH THE DEVELOPER.

NOW THAT'S GONNA BE BASED ON THE MARKET.

THIS, EXCUSE ME, THE PIT ACT HAS SPECIFIC PROVISIONS THAT CAP THE INTEREST RATE, UHHUH, , UH, IT'S TIED TO THE BOND MARKET PLUS IT'S USUALLY TWO, TWO TO 3%.

SO THAT WOULD BE SOMETHING THAT'S BEING NEGOTIATED WITH THE DEVELOPER, UM, AS PART OF THE SERVICE AND ASSESSMENT PLAN PROCESS.

SO NOT AT TONIGHT'S MEETING, BUT WHEN WE COME BACK WITH THE SAP THAT'LL HAVE THAT INTEREST RATE IN THERE.

AND, AND IS THAT INTEREST RATE EVER READJUSTED FOR, FOR MARKET OR IS IT, IS IT FIXED? BECAUSE OUR, OUR, OUR INTEREST RATE COST IS, IS FIXED ONCE WE SELL THE BONDS.

YEAH.

THE INTEREST RATE IS NORMALLY FIXED UNTIL WE GO TO SELL THE BONDS AND THEN IT WILL READJUST AT THE TIME WE ACTUALLY SELL THE BONDS.

SO IT IS A FIXED RATE WHEN WE, UNDER THE TERMS OF THE REIMBURSEMENT AGREEMENT, WHEN WE SELL BONDS, WE BASICALLY PAY OFF OUR OBLIGATION UNDER THE REIMBURSEMENT AGREEMENT AND THOSE BONDS NOW SET OUR NEW INTEREST RATE.

OKAY, SO WHAT, SO WHAT'S FIXED IS THE, IS THE, IS THE MARGIN THAT WE CHARGE ON TOP OF WHATEVER THAT'S INTEREST RATE WE GET.

OKAY.

ALRIGHT.

YEP.

AND I'M NOT SAYING THESE LOTS WILL BE 30,000.

THAT WAS JUST A YEAH, SIMPLE.

NO, NO, NO, NO.

I WAS, I WAS JUST CURIOUS BECAUSE IF, YOU KNOW, IF, IF, IF WE'RE GONNA FIX THE INTEREST RATE NOW YEP.

BUT WE'RE LOOKING AT A CYCLE WHERE THE FED MAY, MAY BE ENTERING A CYCLE WHERE THEY'RE GONNA LOWER INTEREST RATES.

WHAT COULD BE THAT THE, THE HOMEOWNER MAY BE ABLE TO GET A MORE FAVORABLE INTEREST RATE ON THEIR 30 YEAR MORTGAGE THEN, THEN, THEN WHAT THEY WOULD PAY ON THE, YOU KNOW, ON, ON THE PIT ASSESSMENT.

SO IT MAY BENEFIT THEM ECONOMICALLY TO, TO GO AHEAD AND, AND TRY TO ROLL IN THAT PIT ASSESSMENT INTO THE PRICE OF THEIR HOME.

IT MAY ACTUALLY SAVE 'EM SOME MONEY.

YES.

AND IT IS POSSIBLE IN THE FUTURE IF MARKET CONDITIONS CHANGE AND IT IS BENEFICIAL, UH, FOR THE CITY AND THE HOMEOWNERS TO DO, YOU CAN REFINANCE THOSE BONDS, UH, IF THEY INTEREST, IF THERE'S INTEREST RATES SAVINGS WHERE, UM, WHICH WOULD HAVE THE POTENTIAL OF REDUCING THE ANNUAL ASSESSMENT OF THE THE HOMEOWNER.

THAT DOESN'T ALWAYS HAPPEN, BUT IT IT CERTAINLY DOES.

YEAH.

.

AND, AND I THINK TO YOUR POINT, IT, WHAT WE ARE DOING NOW IS WE'RE SETTING THE MAXIMUM INTEREST RATE THAT WE'LL BE ABLE TO CHARGE.

IF A HOMEOWNER SAYS WE CAN FIND A, A CHEAPER WAY FOR ME TO FINANCE THE CAPITAL PORTION OF MY ASSESSMENT, THEY CERTAINLY ARE WELCOME TO DO THAT FROM, FROM OUR SEAT, THE HOMEOWNER'S RESPONSIBLE FOR THEIR CAPITAL PIECE, AND IF THAT'S NOT PAID UP FRONT, IT'S PAID OVER THE, THE ANNUAL INSTALLMENTS FOR THE LIFE OF THE BID.

OKAY.

BUT THEY RECEIVE A DISCLOSURE AS TO WHAT THE BALANCE IS AND WHAT THE INTEREST RATE THEY'RE GONNA BE CHARGED.

JUST LIKE WITH THE, WITH THE MORTGAGE EXACTLY.

CLOSURE.

IT IS A VERY SPECIFIED FORM THAT COMES TO, SPECIFICALLY FROM THE STATUTE.

IT WILL BE ATTACHED TO THE SERVICE AND ASSESSMENT PLAN THAT SAYS EXACTLY FOR YOUR HOME OF THIS LOT SIZE, THIS IS YOUR ASSESSMENT AND THIS IS YOUR ANNUAL INSTALLMENT.

UH, AND IF A HOMEOWNER WANTS TO COME IN AND PREPAY THAT TOTAL AMOUNT, THEY CERTAINLY CAN.

IF THEY JUST PAY THEIR ANNUAL INSTALLMENTS, IT'S PART OF THEIR NORMAL TAX BILL.

OKAY.

IS THAT RAIN?

[00:35:01]

IS THAT, IS THAT, SORRY, I, I HOPE I, I DIDN'T TAKE EVERYBODY'S, SO I'LL GO LOOK AT IT.

UM, SO JUST REAL QUICK ON YOUR AGENDA TONIGHT, UM, YOU WILL HAVE A PUBLIC HEARING ON WHETHER OR NOT TO CREATE THE BA RANCH PUBLIC IMPROVEMENT DISTRICT.

AND THEN, UM, SHOULD YOU DECIDE YOU WANNA CREATE IT, THERE IS A RESOLUTION THAT YOU WILL APPROVE, WHICH WILL CREATE, UM, THE PIT.

THE RESOLUTION DOES NOT LEVY ASSESSMENTS OR DO ANYTHING ELSE OTHER THAN SIMPLY CREATE THE PIT.

UM, AND THEN THE OTHER ITEM IS THE RESOLUTION APPROVING THE ESCROW AGREEMENT THAT YOUR CITY MANAGER TALKED ABOUT.

WHERE SHOULD THE DEVELOPER NOT CLOSE ON THE PROPERTY? BY THE DEADLINE THAT WE HAVE IN THE AGREEMENT OR A COUPLE OTHER TRIGGERING EVENTS, UM, YOU CAN, YOU COULD DISSOLVE THE PIT, UM, IF NECESSARY, SO IT'S NOT JUST HANGING OUT THERE IN EXISTENCE WITH NO ASSESSMENTS AND NOT BEING USED.

AND THEN IN, IN THE FUTURE, THE ASSESSMENTS WILL BE LEVIED ON A PHASE BY PHASE BASIS.

THE DEVELOPER WILL BUILD THE PROJECT IN PHASES.

UM, AND SO IT IS, AT LEAST RIGHT NOW, IT IS ANTICIPATED THAT THE ASSESSMENTS WILL BE LEVIED IN PHASES.

UM, AND THEN REIMBURSEMENT BONDS WOULD BE DONE, UM, FOR EACH PHASE AS WELL IN THE FUTURE.

THAT'S IT, MR. HAYDEN.

THANK YOU MAYOR TIM.

DID I NOTICE IN THERE THOUGH, THAT THERE IS A TIMELINE FOR THE DEVELOPER TO BE ABLE TO PUR PUR, UH, PURCHASE THE PROPERTY? AND SO THAT'S DECEMBER BY THE END OF THE YEAR.

IT'S DECEMBER OF NEXT YEAR OF 25.

YES.

OKAY.

AND, AND THAT'S THE OUTER SIDE.

THAT'S THE VERY, VERY OUTSIDE IS IF NOTHING HAS HAPPENED BY THAT POINT, WE'RE GOING GO AHEAD AND TERMINATE IT.

IF THEY, THEY DECIDE EARLIER IF THE DEVELOPER DECIDES EARLIER NOT TO, TO PURCHASE IT, THAT WE CAN GO AHEAD AND ACT ON THAT RESOLUTION EARLIER.

UM, BUT IF WE HIT THAT 2025, THAT IS THE, IT MUST GIVES US THAT WE HAVE THE AUTHORITY NOW TO DO IT OURSELF.

I THINK THAT'S A GOOD FEATURE IN THERE.

THANK YOU.

YES, YOU'RE WELCOME.

ANY OTHER QUESTIONS? THANK YOU.

ALRIGHT, THANK YOU.

UH, NEXT ITEM ON

[4. Briefing on proposed 3-year Water and Wastewater Rate Ordinance.]

AND WE WILL HAVE MS. SCHAFER.

ALL RIGHT.

AND HOW DO I ADVANCE THIS? IS IT THE GREEN BUTTON HERE? OKAY.

ALL RIGHT.

WELL, THANK YOU ALL FOR HAVING ME HERE TONIGHT.

IT'S REALLY NICE TO SEE SOME YOU'RE FAMILIAR FACES AND A COUPLE OF NEW FACES AS WELL.

UM, I'VE BEEN HERE A COUPLE OF TIMES.

LET ME SEE IF I CAN GET THIS GOING.

SO, UM, MY, I'M FAIRLY MUCH RETIRED, BUT MATTHEW, WHO GAVE THIS, UH, PRESENTATION IN MORE DETAIL TO YOU A FEW MONTHS AGO IS OUT OF TOWN.

UH, SO I'M STEPPING IN TO SORT OF COVER THE SAME GROUND AT A BIT OF A HIGHER LEVEL, BUT ALSO ENABLE YOU TO ASK A FEW QUESTIONS, UM, AND BRING IT TOP OF MIND BEFORE MELISSA COMES TO YOU NEXT MONTH WITH AN ORDINANCE THAT WOULD INCLUDE THE NEXT THREE YEARS OF THE RATE PLAN.

SO WE'LL DO A LITTLE, A LITTLE RECAP, TALK ABOUT THE OBJECTIVES OF THE STUDY, THE REVENUE REQUIREMENT, AND THESE PROJECTED RATES FAIRLY QUICKLY HERE.

UM, A LITTLE BIT OF HISTORY AND, AND I GO BACK EVEN BEFORE THE 2122, I THINK I STARTED WORKING WITH Y'ALL IN 2017, BUT IN, UH, 2021, IT BECAME APPARENT THAT THE, THE FLAT, UM, ONE SIZE FITS ALL, MINIMUM CHARGE FOR WATER JUST WASN'T GOING TO BE ABLE TO RECOVER THE REVENUES THAT WERE NEEDED.

SO, UM, AT THAT POINT IN TIME, YOU ADOPTED THE FIRST, UH, OR THE THREE YEAR ORDINANCE THAT'S IN PLACE NOW, AND THAT WAS THE FIRST TIME THAT YOU WENT TO A GRADUATED MINIMUM CHARGE TIED TO THE METER, UH, SIZE.

SO THAT WAS A, A VERY SIGNIFICANT AND, AND GOOD STEP THERE, UM, BECAUSE YOU WERE A LITTLE OUT OF STEP, FRANKLY, WITH YOUR, YOUR COMPARISON CITIES AND, AND YOUR PRICING.

AND, UH, SO THAT WAS ONE HURDLE, YOU KNOW, A MOUNTAIN CLUB AND, AND WE'RE ALL GOOD THERE, BUT WE STILL NEED TO FUND THE ONGOING CAPITAL IMPROVEMENTS.

CAPITAL COSTS HAVE BEEN INCREASING, UM, EVER GREATER PACE.

AND ALSO KEEP UP WITH THE WHOLESALE PROVIDER COSTS THAT, UM, YOU HAVE TO PAY THROUGH, UH, DALLAS WATER UTILITY AND TRINITY RIVER AUTHORITY.

AND AS WE'VE PROBABLY, YOU'VE PROBABLY HEARD FROM MATTHEW, AND I'VE SAID BEFORE, THE, THE UTILITY AS AN ENTERPRISE FUND, UH, AND IT MUST COLLECT ENOUGH REVENUES TO COVER ITS EXPENSES AND ADOPTION OF A THREE YEAR ORDINANCE REDUCES THE PAIN A LITTLE BIT.

IT'S ALWAYS GOOD TO TAKE ANOTHER LOOK IN THOSE INTERIM

[00:40:01]

UM, BUT, UH, IS, IT'S WORKED OUT VERY WELL FOR THE CITY TO ADOPT A THREE YEAR ORDINANCE AND, AND MAKE SURE YOU'RE, YOU'RE ON PACE.

SO THAT WILL BE THE, THE PROGRAM AGAIN THIS YEAR.

AND THERE WILL BE, UM, LAST TIME WE STARTED, UM, ALLOWING A SENIOR DISCOUNT FOR WATER AND SEWER.

AND WE HAVE GOOD NEWS DRIVEN BY YOUR GUIDANCE THIS YEAR ON INCREASING THAT.

SO, UM, REAL QUICKLY, UH, THIS YEAR'S STUDY DID A DEEPER DIVE INTO CUSTOMER USAGE STATISTICS BECAUSE, UH, AFTER FATHOM WENT UNDER A FEW YEARS AGO, IT WAS DIFFICULT TO GET YOUR DETAILED CONSUMPTION INFORMATION.

AND THEN WE HAD THE, THE YEAR OF 2020 WHEN NOTHING WAS NORMAL, AND IT WAS VERY HARD TO EVEN LOOK AT NORMAL CONSUMPTION PATTERNS TO USE AS A GUIDE TO LOOK FORWARD.

SO I KNOW THE TEAM DID A DEEPER DIVE INTO THAT.

AND ANYTIME WE CAN, UH, DO HAVE BETTER DATA FOR BETTER FORECASTING, THAT JUST DELIVERS A BETTER PRODUCT.

THE COST OF ANNUAL CAPITAL IMPROVEMENTS, UM, IS, IS, UH, LARGELY DRIVEN BY THE INCREASED COST OF, OF THOSE PROJECTS AND THE MATERIALS.

UM, IT'S NOT INCREASING AS GREATLY AS, UH, IT WAS, YOU KNOW, ON A, A CAPITAL PROJECT BASIS.

YOU KNOW, COUNTRYWIDE 20 20, 20 21, THOSE COSTS WERE ESCALATING.

EVERY TIME YOU ASK A QUESTION, IT WAS DOUBLING THE COST OF PROJECTS.

IT SEEMED LIKE.

HOWEVER, YOU ARE INCREASING THE, THE ANNUAL BUDGET FOR THOSE CAPITAL PROJECTS THIS YEAR FROM THREE AND A HALF MILLION TO 4 MILLION.

AND, UM, I EXPECT THAT'S LARGELY DRIVEN BY THE, THE COST THAT YOU INCUR FOR THOSE MATERIALS AND PROJECTS.

UM, AND THEN WHOLESALE PROJECTED COSTS WILL LOOK AT MORE, UH, IN DEPTH HERE IN A MOMENT.

AND THEN, AS I MENTIONED, THE ENTERPRISE FUND FOR WATER AND SEWER IS BASICALLY A BUSINESS THAT YOU OPERATE.

AND SO YOU, YOU NEED TO MAINTAIN WORKING CAPITAL AND A RESERVE AND MAKE SURE THAT YOUR REVENUES ARE COVERING YOUR COSTS.

AND THE BEST WAY TO DO THIS IS WITH GOOD STRATEGIC PLANNING.

IN THIS YEAR'S BUDGET, UM, INFLATION IS MODERATED.

AND, UM, THE DATA THAT WE USE TO FORECAST THAT WITH PROJECTS ABOUT A 3.2% ANNUAL INFLATION RATE ON MOST ITEMS. UH, SOME ITEMS THOUGH, DON'T FOLLOW THAT PROGRAM.

MOST SPECIFICALLY, DALLAS WATER UTILITY AND TRA, YOU CAN SEE 5% ANNUAL AVERAGE INCREASES FOR DALLAS WATER AND 14% FOR TRINITY RIVER AUTHORITY ON THE WASTEWATER TREATMENT SIDE.

SO CLEARLY THOSE ARE GONNA BE DRIVING THE RATES.

UM, AND WE MENTIONED THE CAPITAL IMPROVEMENT PLAN.

NOW GOOD NEWS HERE, UH, IS WITH THE, THE GROWTH AND, AND ADDITIONAL DEVELOPMENT IN YOUR CITY, YOU'VE GOT SOME NEW ACCOUNTS COMING IN AND NEW ACCOUNTS ALWAYS HELP BOOST REVENUES.

SO, SO I'M VERY HAPPY TO HEAR THAT FOR YOU.

UM, WHEN WE LOOK AT THE REVENUE REQUIREMENT OVER THE NEXT FIVE YEARS, YOU CAN SEE THERE'S AN INCREASE OF ABOUT $12 MILLION.

AND, UM, LARGELY THE, THE GREEN BAND AT THE BOTTOM, THAT'S YOUR TRINITY RIVER AUTHORITY, UH, WASTEWATER CHARGES.

AND THAT'S A FACT OF LIFE.

IT'S SOMETHING YOU REALLY CAN'T CONTROL.

UH, THE GOOD NEWS IS YOUR, YOUR FLOWS GO TO THREE DIFFERENT PLANTS AND THE MAJORITY OF YOUR FLOWS GO TO THE PLANT.

THAT'S INCREASING AT THE, THE LOWER, UM, PERCENTAGE PACE.

UH, THE MIDDLE BAND IS THE WATER PURCHASES FROM DALLAS WATER UTILITY.

WE USED TO THINK ABOUT 3%, 4%, BUT IT'S LOOKING MORE LIKE 5%.

EVERYBODY'S GOT CAPITAL COSTS AND THE SAME ISSUES JUST ON A GRANDER SCALE.

UM, YOUR O AND M COSTS IN THAT LIGHT BLUE BAND, THOSE ARE FAIRLY CONSISTENT.

I MEAN, YOU'VE GOT SOME INFLATIONARY INCREASES FOR SALARIES AND MATERIALS AND SUPPLIES, BUT THEY DON'T GROW BY NEAR THE, THE, UM, RATE THAT THESE WHOLESALE COSTS DO.

AND THEN PROJECTED AN EXISTING DEBT SERVICE, YOU'LL SEE THAT GO UP SLIGHTLY.

THERE IS ONE THING I NEED TO POINT OUT ON THIS SLIDE I NOTICED IN THE GRAY BAND, THE SECOND BULLET POINT SAYS A 9% AV AVERAGE INCREASE ON WASTEWATER, THAT SHOULD BE 14, UM, TO COINCIDE WITH THE OTHER SLIDE.

SO WHEN YOU LOOK AT THE VERY BOTTOM LINE OF THAT SLIDE, IT NOTES THAT RIGHT NOW, IN FISCAL YEAR 24, THOSE WHOLESALE COSTS COMPRISE ABOUT 56% OF YOUR TOTAL REVENUE REQUIREMENT.

AND THAT INCREASES OVER TIME, FORECASTED TO BE 64% IN 2029.

SO KIND OF BEATING A DEAD HORSE THERE, BUT THAT IS THE BIG DRIVER.

SO HOW DO WE DO THIS? HOW DO WE COLLECT THE REVENUES IN THE LEAST PAINFUL WAY? AND, UH, SO THE RATE PLAN DEVELOPED ACTUALLY HAS SMALLER INCREASES YEAR OVER YEAR THAN THE PREVIOUS THREE YEAR ORDINANCE.

[00:45:02]

SO, UM, IT'S ABOUT THE PRICE OF A CUP OF COFFEE EACH YEAR.

YOU KNOW, I DON'T REALLY KNOW HOW ELSE TO BREAK IT DOWN.

UM, HOWEVER, IF YOU'RE A SENIOR, YOU GET AN EXTRA DISCOUNT ON THAT CUP OF COFFEE BECAUSE YOU'LL SAVE $3 PER MONTH ON THE WATER SIDE AND $3 ON THE WASTEWATER SIDE ON THE SEWER BILL.