Jun 02, 2026 City Council

[1. CALL TO ORDER]

[00:00:05]

THIS TIME THE MAYOR WILL CALL TO ORDER THE REGULAR CITY COUNCIL MEETING FOR 6 P.M. ON TUESDAY, JUNE 2ND OF 2026. CITY COUNCIL CHAMBERS, 201 EAST NASH STREET, TERRELL, TEXAS. HAVE WITH US ON THE DAIS OUR DISTRICT TWO REPRESENTATIVE, OUR MAYOR PRO TEM DONNA RENEE ANDERSON, DISTRICT THREE JORGE VARGAS, DISTRICT FIVE. PHIL ROBINSON. NOT WITH US THIS EVENING, BUT EXCUSED IS DISTRICT FOUR. STEPHANIE HOLMES THOMAS OR DEPUTY MAYOR PRO TEM.

WE HAVE OUR CITY MANAGER COUNCIL. WE HAVE STAFF WITH US. WE DO HAVE A QUORUM SO WE CAN CONTINUE WITH OUR MEETING. AT THIS TIME, I WOULD ASK FOR DARWIN REN TO COME FORWARD FROM TEMPLE OF PRAISE TO LEAD US. AN INVOCATION. IF YOU WOULD PLEASE STAND REMAIN STANDING FOR PLEDGES. HEAVENLY FATHER, WE THANK YOU FOR BLESSING US ALL DAY LONG. THANK YOU FOR CARRYING US THROUGH THIS DAY AND WATCHING OVER US AND PROTECTING US. OH, WE THANK YOU FOR THIS SETTING HERE. OH GOD. WE ASK THAT YOUR BLESSINGS BE UPON EACH AND EVERYONE AND THAT YOU JUST CONTINUE TO BLESS US, O GOD, AS WE GO OUT THIS MEETING AND EVERYBODY BE ON THE SAME PAGE. OH GOD, SAME MIND WE UNIFIED TOGETHER, LORD, WE JUST THANK YOU FOR ALL THINGS AND YOUR BLESSINGS. IN JESUS NAME WE PRAY. AMEN. AMEN, AMEN. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS. ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. HONOR THE TEXAS FLAG. I PLEDGE ALLEGIANCE TO THEE. TEXAS, ONE STATE UNDER GOD, ONE AND INDIVISIBLE. ALRIGHT.

45.2. COMES FROM AN ATTORNEY.

[2. MAYOR AND COUNCIL COMMUNITY RECOGNITION AND EVENTS]

WONDERFUL. GOOD, GOOD. HE'S A MARINE. YEAH. WE'RE ALL MARINES. OKAY. I WAS THE AIR FORCE WAS DEFINITELY UNDER REPRESENTED. OKAY. WONDERFUL. ANYONE ELSE? AGAIN WE HAVE JUNE AND. OKAY.

ALL RIGHT. COME ON. YES. OKAY. WE HAVE A BIG BIRTHDAY PARTY COMING UP. NAME AND ADDRESS? ANGIE COOPER, 222 ELM. THANK YOU. THANK YOU. COUNCIL AND MAYOR AND COUNCIL. I'LL GET IT RIGHT. I GOT FOOD ALL OVER MY SHIRT. I DO APOLOGIZE, IT'S BEEN A ROUGH DAY FOR ME.

CHAMBER WORLD. WE HAVE A BIG BIRTHDAY COMING UP. 250 YEARS. YEARS. WHOO HOO! YUP, YUP. SO WE'RE WE'VE BEEN WORKING ON THIS, AND IT KIND OF KIND OF BEHIND THE EIGHT BALL, WHICH IS HOW WE WORK BEST, RIGHT? IN CHAMBER WORLD JUST TO LET Y'ALL KNOW WHAT'S GOING ON AT THE MUNICIPAL AIRPORT. WE ARE GOING TO HAVE A RACK. IT'S CALLED A RACK PARTY. RAMP PARTY. I CANNOT GET RACK OFF MY HEAD RAMP PARTY. WE'RE GOING TO HAVE CALAMITY JANE COMING TO PERFORM FROM 6 TO 9 P.M. WE'RE GOING TO HAVE FOOD TRUCKS AND KIDS ZONE THERE. GATES OPEN AT 5:00, WHICH IS REALLY EXCITING, RIGHT? THIS IS GOING TO BE COOL. AND SIDE NOTE IS AT THE SAME TIME AT THE SHOPS OF TERRELL, WE ARE GOING TO HAVE WITH ALL THE BLESSINGS THAT I CAN, WE'RE

[00:05:03]

YEAH. NEXT YEAR. OKAY. ANYONE ELSE? AMARA, WE HAVE SOME GUESTS WITH US. GOOD EVENING, MAYOR AND COUNCIL. I HAVE SOME VERY EXCITING PEOPLE JOINING ME. WE HAVE. YESTERDAY WAS THE FIRST DAY OF OUR FIVE STUDENT INTERNS, BOTH HIGH SCHOOL AND UNDERGRAD, AND THEY CAN COME UP AND INTRODUCE THEMSELVES HERE IN A MINUTE. BUT THEY HAVE BEEN A FULL DAY YESTERDAY, FULL DAY TODAY, AND THEY WILL BE JOINING THE CITY OVER THE NEXT EIGHT WEEKS TO DO THEIR INTERNSHIP.

THEY WILL EACH BE PLACED IN A DIFFERENT DEPARTMENT THROUGHOUT THE EIGHT WEEKS, BUT THEY WILL ALSO BE ALTERNATING ALL OF THEM. SO WHERE THEY GET FULL EXPOSURE TO ALL OF THE DEPARTMENTS AND FUN ACTIVITIES THAT WE GET TO DO HERE AT THE CITY. SO I WILL LET THEM COME FORWARD AND INTRODUCE THEMSELVES AND LET YOU GUYS MEET THEM. ALL RIGHT, WE GET TO GUESS WHAT. WE GET TO GUESS WHICH COLLEGE THEY MAY BE ATTENDING JUST BY HOW YOU SPEAK. COME ON, THAT'S WHO'S FIRST.

DON'T SAY ANYTHING. JUST NAME AND DON'T SAY YOUR SCHOOL THAT YOU'RE GOING TO. HELLO, MAYOR AND COUNCIL. MY NAME IS CAMILA FLORES. OKAY. I GRADUATED FROM CORNELL HIGH SCHOOL LAST WEEK.

I'M INTERNING MOSTLY ON THE ADMINISTRATIVE SIDE, BUT I'LL BE ROTATING IN EVERY DEPARTMENT.

I AM GOING TO A SCHOOL IN HOUSTON. OKAY, BUT LIKE CITY MANAGER MR. MILLS, I HOPE TO GO TO LAW SCHOOL IN THE FUTURE. I'M STILL DEBATING WHETHER I SHOULD GO OR IF CITY GOVERNMENT WILL BE MY CALLING, SO THAT'S OKAY. SO I'LL TAKE THIS ONE. I'LL SAY HOUSTON RICE UNIVERSITY. YES, SIR. ALRIGHT. THANK YOU. THAT. MAN, THE MAYOR. SMART, I'M TELLING YOU. ALRIGHT.

ALRIGHT. THANK YOU, THANK YOU. WELCOME. YES. NEXT. WELCOME. OH, I'M ON A ROLL. LET ME DO THIS ONE TO YOU. GOOD AFTERNOON, MAYOR AND COUNCIL. I'M A SOPHOMORE IN TED SCHOOL STUDY STUDYING CIVIL ENGINEERING. I WAS I MOVED HERE WHEN I WAS FOUR YEARS OLD FROM DALLAS, TEXAS, AND I'M JUST VERY EXCITED TO SEE WHERE TERRELL TAKES OFF FROM NOW. AND YEAH, SO HE SAID, CIVIL ENGINEER, CIVIL ENGINEER, AGGIE A&M. YES, YES. ALRIGHT. TWO FOR TWO NEXT.

I LIKE THIS GAME. I LIKE THIS GAME. I'M GOING TO GUESS TEXAS ON THIS ONE. GOOD EVENING. IT'S ON HIS SHIRT. CURRENTLY PURSUING A DEGREE IN ACCOUNTING AND FUN FACT ABOUT ME. I'M THE STUDENT GOVERNMENT OVER THERE SERVING AS THE UNIVERSITY WIDE REPRESENTATIVE. I'LL BE HELPING PASS LEGISLATION TO BETTER OUR OVERALL STUDENT BODY AND STUDENTS. I, MY SON DID THAT AT NOTRE DAME, AND THAT'S GOOD. I'M GUESSING A TEXAS SCHOOL. YES. YEAH. UT YES, THERE YOU GO, MR. WHITAKER. WE WE NEED HIM THREE FOR THREE FOR THREE. SO IMPRESSIVE. LOOK, THEY'RE SITTING NEXT TO EACH OTHER, OKAY? GOOD EVENING, MAYOR AND COUNCIL. MY NAME IS RILEY STARR.

I AM AN UPCOMING SENIOR AT TERRELL HIGH SCHOOL, AND I SERVE ON THE FFA OFFICER TEAM ALONG WITH SHOWING CATTLE. AND I WANT TO GO TO TARLETON STATE UNIVERSITY TO STUDY AG ENGINEERING AND AG COMMUNICATIONS. WONDERFUL. WELCOME BOARD. THANK YOU.

WELCOME. ISN'T THAT YOUR SCHOOL? DID YOU GO TO TARLETON? NO. I THOUGHT YOU DID. OKAY, JAMIE.

OKAY, OKAY. WOW, THAT WAS CLOSE. YEAH, I'M KAMIYAH KENNEDY. I ATTEND TERRELL HIGH SCHOOL. I'M AN UPCOMING SENIOR, AND I WANT TO. I'M DOING TECH RIGHT NOW FOR NURSING, AND I WANT TO BE A NICU NURSE. WONDERFUL. WELL, GOOD. WELL WELCOME ABOARD. THANK YOU ALL FOR BEING HERE THIS EVENING AND BEING A PART OF THE CITY OF TERRELL. IT'S REALLY EXCITING. YOU GET TO SEE

[00:10:02]

AND I KNOW Y'ALL ARE GOING TO BE VERY SUCCESSFUL AS YOU MOVE FORWARD. DOES ANYBODY ELSE HAVE ANY COMMUNITY RECOGNITION OR EVENTS? I WANTED TO MENTION? WE HAVE OUR SUMMER MOVIE NIGHT IN THE PARK THIS COMING SATURDAY AT 7 P.M. I THINK THEY'RE SHOWING THE SANDLOT. IT'LL BE A FUN ONE. OH YEAH, I SAW THAT MOVIE. I DIDN'T SEE EVERYONE OUT THERE. YEAH, AND THEN I UNDERSTAND THAT BECCA IS STILL STANDING OUT IN FRONT OF THE LIBRARY AS WE SPEAK. I'M. I FEEL TERRIBLE THAT SHE'S HAD TO RESCHEDULE. DO WE HAVE A DATE YET? OH, IT'S ONCE AND DONE.

OKAY. THAT'S IT. WHAT? I CAN'T TELL YOU THAT EVERY YEAR THAT WE HAVE A ROBUST. AGENDA FOR THE LIBRARY AND MANY, MANY WAYS IN WHICH YOU CAN PARTICIPATE AT ALL LEVELS, WHETHER YOU'RE.

YOUNG OR OLD. AND WE, WE ASK THAT YOU GO TO THE WEBSITE AND SEE WHAT'S AVAILABLE AND HOPE YOU ALL HAVE A WONDERFUL SUMMER OF READING. NEXT ON THE AGENDA IS TO HEAR REMARKS FROM

[3. HEAR REMARKS FROM VISITORS]

PLEASE COME. LET ME SEE. A&M. LONG TIME AGO. YEAH. MAYOR AND COUNCIL. MY NAME IS HAL RICHARDS. I LIVE AT FORT CARTWRIGHT STREET. FIRST, THANK YOU FOR YOUR SERVICE. I'M HERE REPRESENTING I'M ON THE TERRELL AIRPORT ADVISORY BOARD, AND I'M HERE TO TELL YOU A LITTLE BIT ABOUT THE UPCOMING FIFA WORLD CUP. SO WHAT IS THAT GOT TO DO WITH THE TERRELL AIRPORT? THERE WILL BE A MILLION PEOPLE IN THE DALLAS FORT WORTH METROPLEX DURING THAT TIME. WE HAPPEN TO BE CONNECTED THROUGH THE CONSUL GENERAL'S OFFICE, THE MUSEUM. THE MUSEUM DOES THAT. THERE ARE 3000 BRITS THAT WILL BE HERE IN THE DALLAS FORT WORTH AREA FOR THEIR GAMES. WE EXPECT TO HAVE SOME OF THOSE FOLKS COMING TO VISIT THE AIRPORT AND THE MUSEUM, BUT ALSO THE, THE, THE AIRPORT. WE'RE WE'RE PRESENTING OURSELVES. APEX ARROW IS OUR FBO IS REALLY WORKING HARD TO PROMOTE THEMSELVES AS AN OVERFLOW AIRPORT. MANY OF THE MAJOR. THE BIGGER AIRPORTS IN THE METROPLEX ARE CHARGING THE NUMBER. I HEARD LIKE $2,900 TO PARK A SMALL EXECUTIVE JET, $500 TO A DAY TO PARK A SMALL SINGLE ENGINE AIRPLANE AND APEX AVIATION AND AIRPORT ARE NOT DOING THAT, AND WE'RE ENCOURAGING VISITORS TO COME. SO A MILLION PEOPLE, 3000 BRITS WILL BE HERE FOR THAT PARTICULAR TIME. AND WE ARE JUST OPTIMISTIC THAT IT'S GOING TO HAVE A BIG EFFECT. KYLE DACOSTA, WHO IS OUR MANAGER AT APEX, PRESENTED OR CREATED THIS DOCUMENT FOR ME TODAY, AND I'D LIKE TO PASS IT OUT TO YOU. IT'S GOT SOME INTERESTING THINGS ABOUT FIFA, AND PROBABLY THE ONLY THING I CAN SAY IS STAY OFF THE ROADS DURING THAT TIME. MAY I PASS THIS OUT? YES. THANK YOU. THANK YOU VERY MUCH. AND THANK YOU FOR YOUR TIME.

YEP. THANK YOU. THANK YOU SIR. ALL RIGHT. NEXT ON THE AGENDA IS OUR CONSENT AGENDA. THIS IS

[4. CONSENT AGENDA]

[5. PUBLIC HEARINGS AND CITY COUNCIL ACTIONS]

[00:15:06]

SO MOVED. WE HAVE A MOTION. IS THERE A SECOND? SECOND. WE HAVE A MOTION FROM DONNA RENEE ANDERSON MAYOR PRO TEM FROM DISTRICT TWO, A SECOND FROM JORGE VARGAS OF DISTRICT THREE, TO POSTPONE BOTH ITEMS, 5.1 AND 5.2, UNTIL OUR NEXT MEETING. IS THERE ANY FURTHER DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR, LET IT BE KNOWN BY STATING I. AYE. ANY OPPOSED?

[6. BOARDS AND COMMISSIONS]

[7. DISCUSSION ITEMS]

GOOD EVENING, MAYOR AND COUNCIL. SO WE'RE PROUD TO BRING FORWARD THE INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED MARCH 31ST, 2026. SO THIS IS HALFWAY THROUGH OUR CURRENT FISCAL YEAR, FISCAL YEAR 2026. BEFORE DIVING INTO THE REPORT. AS YOU KNOW, THE CITY IS MADE UP OF NUMEROUS FUNDS. IN THIS REPORT, WE'RE GOING TO HIGHLIGHT THE GENERAL FUND AND THE UTILITY FUND, OUR TWO MAJOR FUNDS. SO WE'LL BE GOING THROUGH THOSE TODAY. WE CAN PROVIDE DETAIL ON OTHER FUNDS AT ANY TIME FOR TO COUNCIL AS AS NEEDED. SO THIS IS KIND OF OUR FIRST FORMAL INTERIM FINANCIAL REPORT TO COUNCIL. WE WILL BE GETTING BACK ON A PACE OF DOING MONTHLY REPORTS TO COUNCIL. YOU'LL GET A MEMO IN FINANCIALS MONTHLY, AND THEN WE'LL DO THIS QUARTERLY REPORT IN FRONT OF COUNCIL. MORE STRUCTURED AND MORE HAVE MORE TIME FOR YOU ALL TO ASK QUESTIONS AS YOU GO. SO EVERYTHING YOU'RE GOING TO SEE IN THIS REPORT IS UNAUDITED AND A POINT IN TIME, A SNAPSHOT, NOT A FINAL PICTURE FOR THE FISCAL YEAR OR ANYTHING LIKE THAT. SO WITH THAT CAVEAT, WE WILL JUMP RIGHT IN. OKAY. MAYBE. NOW IT'S ON. THERE WE GO. GOTTA TURN IT ON. THAT HELPS. SO FIRST WE'RE GONNA LOOK AT THE GENERAL FUND. THAT'S THE CITY'S PRIMARY OPERATING FUND. THAT'S WHERE YOU'LL SEE EVERYTHING POLICE, FIRE, PARKS, STREETS, GENERAL ADMIN, REGISTRATION. SO EVERYTHING'S THERE. AND I WILL SAY THE NUMBERS KIND OF LOOK DRAMATIC HERE. YOU CAN SEE THAT IT'S SHOWING A $12.6 MILLION FUND BALANCE, UNASSIGNED FUND BALANCE, ESSENTIALLY, WHICH IS A $7 MILLION NET CHANGE. BUT THAT'S NOT NECESSARILY THAT WE HAVE A 7 MILLION EXTRA DOLLARS THAN WE THOUGHT. THAT'S JUST A TIMING ISSUE. MOST OF OUR PROPERTY TAX COMES IN EARLIER IN THE YEAR. SO IN THAT DECEMBER THROUGH FEBRUARY TIME FRAME. SO THIS IS REALLY JUST A FUNCTION OF THAT. WE GOT MOST OF OUR PROPERTY TAX, WHICH IS OUR MAJOR GENERAL FUND REVENUE EARLY IN THE YEAR. AND WE'LL BE SPENDING THAT DOWN AS THE YEAR GOES. AND AS WE CONTINUE TO EXPAND THAT BUDGET. AND WE STILL HAVE SIX FULL MONTHS OF SPENDING AHEAD OF US, REVENUES ARE AT 67% OF BUDGET. AGAIN, THAT'S THE TIMING OF PROPERTY TAX COLLECTIONS. SO WE'VE COLLECTED MOST OF OUR PROPERTY TAX. AND BUT THAT GAP IS GOING TO START CLOSING FAST THAT WE'LL BE GETTING BACK TOWARDS BUDGET, ESPECIALLY ON THE EXPENSE SIDE WHERE YOU CAN SEE WE HAVE 18.5 MILLION IN YEAR TO DATE EXPENDITURES. OUR TOTAL BUDGET IS 38.4 MILLION. SO WE'RE ABOUT 48% OF OUR ANNUAL BUDGET. SO RIGHT ABOUT HALF WE'RE A LITTLE LAGGING BEHIND. AND AGAIN, AS WE GO THROUGH THE YEAR, THAT WILL GET CLOSER TO BEING EXPENDED, THE FULL BUDGET WE'RE PROJECTING TO COME IN RIGHT AROUND BUDGET AT THE END OF THE YEAR, NOT SEEING ANYTHING HUGE EITHER WAY. THE OTHER THING ON THE EXPENDITURE SIDE THAT'S LACKING IS SOME OF THE RAISES THAT WE HAD FOR THIS FISCAL YEAR WERE EFFECTIVE APRIL 1ST. SO THOSE RAISES WERE NOT REALLY REFLECTED IN ANY OF THE PAYROLL DATA FOR THIS REPORT AS OF MARCH 31ST. SO YOU'LL START SEEING PAYROLL SPIN DOWN MORE AND MORE AS WE

[00:20:04]

WE'RE LOOKING GOOD FOR WHERE WE'RE AT IN THE FISCAL YEAR. ALL RIGHT. OKAY. SO LET'S TAKE A DIVE INTO REVENUE. AS YOU CAN SEE HERE, PROPERTY TAX AND SALES TAX ARE OUR BIG REVENUES.

SALES TAX DOES KIND OF LOOK LIKE IT'S LAGGING BEHIND IF YOU LOOK AT THIS JUST LOOKING AT IT.

BUT THE WAY THAT SALES TAX IS RECORDED, ONLY FOUR MONTHS OF ACCRUAL BASIS REVENUES REPORTED.

SO ESSENTIALLY IT'S A TIMING ISSUE. WE ACCRUE BACK THE OCTOBER AND NOVEMBER SALES TAX TO THE PRIOR FISCAL YEAR, BECAUSE THOSE SALES TAX NUMBERS ARE RELATED TO LAST YEAR'S ACTIVITY. SO THE AUDITORS MAKE US PULL THAT BACK INTO LAST YEAR. SO THE NUMBER YOU'RE SEEING IN THE FINANCIALS NOW IS REALLY ONLY FOUR MONTHS OF ACTIVITY. BUT WHEN WE GET TO THE END OF THE FISCAL YEAR, OF COURSE YOU'LL HAVE YOUR FULL 12 MONTHS OF ACTIVITY. I ALSO HAVE SOME MORE SLIDES HERE IN A MINUTE TO KIND OF HAVE A BETTER LOOK AT HOW SALES TAX IS DOING.

THAT IS ONE OF OUR MORE VARIABLE REVENUE SOURCES. AND OF COURSE, DEPENDS ON HOW THINGS ARE GOING IN THE COMMUNITY AND THE ECONOMY AND ALL OF THAT. SO WE'LL TAKE A LOOK AT THAT. PROPERTY TAX YOU'LL NOTICE ON HERE LOOKS SLIGHTLY OVER BUDGET. THAT IS AGAIN A BUDGET PRESENTATION ISSUE. IT'S NOT A ISSUE OF THAT. WE COLLECTED MORE PROPERTY TAX THAN WE THOUGHT. THE WAY THE BUDGET WAS ORIGINALLY PRESENTED. IT NETTED OUT THE TEARS REMITTANCES. SO ESSENTIALLY WE HAVE THOSE TAX INCREMENT REINVESTMENT ZONES AND THEY GET A PORTION OF THE CITY'S AND THE COUNTY'S PROPERTY TAX. SO ORIGINALLY THAT WAS NETTED AGAINST THE PROPERTY TAX BUDGET. SO YOU WERE SHOWED A NET PROPERTY TAX. BUT IN THE PRESENTATION I'M SHOWING HERE, YOU'RE KIND OF SHOWED THE GROSS PROPERTY TAX. AND IF YOU LOOK ON THE EXPENDITURE SIDE, YOU'LL SEE THE SAME THING OVER THERE WHERE IT LOOKS LIKE WE'RE OVERSPENDING ON EXPENDITURES. BUT AGAIN, WE'RE NOT. IT'S JUST A KIND OF A TRUE UP OF I THINK IT'S MORE TRANSPARENT TO SHOW THE FULL GROSS PROPERTY TAX AND THEN SHOW THE TEARS, REMITTANCES AS THEIR OWN EXPENSE ITEM ON THE OTHER SIDE, THE OTHER REVENUE ON HERE, ONE OF OUR OTHER MAJOR REVENUES IS FRANCHISE TAX. WE'RE LOOKING GOOD. WE'RE AT 61% MID YEAR.

THE OTHER ONE I'LL MENTION IS INTERGOVERNMENTAL. YOU CAN KIND OF SEE IT THERE. THE SECOND LINE FROM THE TOP THAT THERE'S A ABOUT 1.4 MILLION THERE. AND THAT'S FOR THE SAFER GRANT, WHICH IS FOR OUR FIRE DEPARTMENT FOR THE NEW FIRE STATION NUMBER THREE. AND THE STAFF RELATED TO THAT. SO WE HAVE NOT ACTUALLY DRAWN DOWN ANY OF THAT MONEY YET, BUT THAT IS EXPECTED BECAUSE THAT STATION IS JUST NOW COMING ONLINE AND WE ARE WORKING WITH FEMA TO START DOING THE DRAW DOWN ON THAT GRANT THERE. SO ANY QUESTIONS ON THE REVENUE SIDE BEFORE I MOVE ON? THE. SO EVERYTHING IS CONTINGENT IN RELATION TO THE PROPERTY TAX AND THE SALES TAX. EVERYTHING IS CONTINGENT ON IN RELATION TO PROPERTY TAX FOR WHAT'S GOING TO BE COMING IN. OR IS THAT CAN YOU EXPLAIN THAT PART AGAIN ABOUT THAT? WHY IS THE BLUE LINE LONGER THAN THE GRAY? THE BLUE LINE IS LONGER THAN THE GRAY LINE. BECAUSE WHEN WE BUDGETED PROPERTY TAX, WE BUDGETED A NET NUMBER, THE PROPERTY TAX THAT WE THE TOTAL PROPERTY TAX, WE COLLECT LESS THE TEARS ALLOCATION OF THAT, SO LESS THAT MONEY THAT'S GOING BACK TO THOSE TAX INCREMENT REINVESTMENT ZONES. OKAY, SO I'M SHOWING THE FULL AMOUNT OF PROPERTY TAX WE COLLECTED HERE INSTEAD OF JUST THAT NET AMOUNT. SO THAT'S WHY IT LOOKS LIKE WE'RE OVER BUDGET IN PROPERTY TAX. BUT WE ARE OKAY. THIS IS A DIFFERENCE IN PHILOSOPHY BETWEEN MATTHEW AND I. AND I ALLOWED I'M SINCE HE'S OUR FINANCE DIRECTOR, I'M LETTING HIM DO THE PRESENTATION IN THIS MANNER. THE WAY THAT I'M USED TO DOING IT IS THE PROPERTY TAX COME IN AND YOU NET YOU NET NET IT OUT. ESSENTIALLY, THE GENERAL FUND PORTION STAYS IN THE GENERAL FUND AND THE TOURISM AMOUNTS GO DIRECTLY GET BOOKED. THEY GET ESSENTIALLY THE REVENUE GETS MOVED FROM ONE REVENUE ACCOUNT TO ANOTHER. HE'S WHAT HE'S DOING IS HE'S SHOWING A REVENUE AND AN EXPENSE OR REVENUE AND EXPENDITURE SO THAT HE'S REFLECTING THE ENTIRETY OF THE PROPERTY TAX REVENUE. AND THEN INSTEAD OF THE MONEY GETTING BOOKED DIRECTLY INTO THE TAX INCREMENT REINVESTMENT ZONE, HE'S SHOWING IT ESSENTIALLY AS A TRANSFER OUT TO MOVE THE MONEY. SO HE'S SHOWING THE ENTIRETY OF THE IMINO AND TAX INCREMENT PROPERTY TAX IN THE GENERAL FUND AS A REVENUE, AND THEN THE APPROPRIATE PORTION AS AN EXPENDITURE, WHERE THE WAY THAT I'VE DONE IT IN THE PAST IS I REFLECT THE NET AND THEN

[00:25:01]

THIS IS JUST TRYING TO GET EVERYTHING WHERE I THE WAY I FEEL IT SHOULD BE. NO. AND I'LL STOP STEPPING ON MATT JUST, JUST AS A AS AN EXAMPLE, USING ROUND NUMBERS, LET'S SAY THAT WE PROJECTED TO HAVE $12 MILLION IN REVENUE FOR PROPERTY TAX IN THE GENERAL FUND. BUT IF YOU LOOK AT THE TAX INCREMENT REINVESTMENT ZONES, THERE MAY HAVE BEEN ANOTHER $3 MILLION WHERE THE WAY THAT TRACY AND I DID THE BUDGET, WE BOOKED THE 12 MILLION IN THE GENERAL FUND AND THE REST IN THE APPROPRIATE FUND. WHAT MATT'S DOING IS HE'S SHOWING THE ENTIRETY OF THE PROPERTY TAX AND THEN A TRANSFER TO THE INDIVIDUAL FUNDS. SO THAT'S WHY HIS 50, HIS 15 AND MY 15 WOULD BE THE SAME. I'M JUST REFLECTING IT IN TWO DIFFERENT PLACES. NO, I GOT IT. YEAH I AGREE. OKAY. ANYBODY GOT ANY QUESTIONS. ANY MORE QUICK QUESTION. DO WE HAVE ANY TAX ABATEMENTS EXPIRING ANYTIME SOON THAT WILL IMPACT SOME OF WHAT WE'RE SEEING HERE OR WILL IMPACT US IN THE MAYBE THE COMING YEAR? HOW CLOSE ARE WE TO SOME OF THOSE THOSE ABATEMENTS EXPIRING? SO I DON'T BELIEVE WE HAVE ANY ACTUAL ABATEMENTS IN PLACE. BUT WE DO HAVE 380 AGREEMENTS. TOURS NUMBER ONE IS GOING TO EXPIRE AND I BELIEVE THAT EXPIRES IN 3234. THAT'LL BE THE FIRST ONE. OKAY. I WAS TALKING MORE IN TERMS OF, I THINK, INDIVIDUAL AGREEMENTS WITH, YOU KNOW, PARTICULAR DEVELOPERS OR BUSINESSES YOU'RE TALKING ABOUT SPECIFICALLY TO THE TOURS. YEAH. I WAS TALKING IN REFERENCE TO TO PROPERTY TAX AND THREE AGREEMENTS RELATED TO THAT. WE'VE GOT THE CROSSROADS AGREEMENT, BUT I THINK THAT RUNS THROUGH 34 AS WELL. OKAY. THE DEVELOPMENT AGREEMENT. BUT THERE WAS A CAP. THERE WAS A REVENUE CAP, RIGHT. IT'S WHICHEVER IF IT'LL IT COULD GO TO 34. BUT IF IT PAYS OFF QUICKER, THEN OUR IF IT HITS THAT THRESHOLD. RIGHT, RIGHT. YEAH. A LOT OF TIMES IT'LL BE ON A PERCENTAGE OF SALES TAX IN AN AMOUNT NOT TO EXCEED. OKAY. THANK YOU. OKAY. ANY OTHER QUESTIONS ON REVENUE? OKAY. SO LIKE I SAID, WE'LL LOOK AT SALES TAX IN A LITTLE DIFFERENT WAY. AGAIN, SALES TAX IS RECOGNIZED ON ACCRUAL BASIS. SO OCTOBER AND NOVEMBER RECEIPTS FROM THE STATE COMPTROLLER REPRESENT AUGUST AND SEPTEMBER RETAIL ACTIVITY. THAT'S WHY THE AUDITORS MAKE US PULL THAT BACK INTO THE PRIOR FISCAL YEAR. SO IN THIS CASE IT WENT TO FISCAL YEAR 25. SO YOU'RE ONLY SEEING FOUR OF THE SIX MONTHS ESSENTIALLY ON HERE. WELL, THE NEXT SLIDE KIND OF GIVES US A BETTER IDEA OF WHAT'S GOING ON THIS YEAR. YOU CAN SEE ACTUAL MONTHLY COLLECTIONS FOR THE CITY FOR THE EIGHT MONTHS. I WENT AHEAD AND PULLED THIS ALL THE WAY THROUGH MAY. YOU CAN SEE OUR FISCAL YEAR 25, WHICH IS LAST YEAR'S ACTUALS WITH 13.27 MILLION. THIS YEAR, WE'VE BROUGHT IN 12.94 MILLION. SO WE ARE DOWN ABOUT 331,000 FROM LAST YEAR, WHICH IS ABOUT A 2.5% CHANGE. YOU CAN SEE THAT THAT WAS KIND OF VARIABLE DEPENDING ON THE MONTH. WE HAD A GREAT MONTH IN JANUARY, WHICH WAS THE NOVEMBER SALES WAS UP 11%. AND THEN YOU CAN SEE THOSE KIND OF OFFSET BY THE FEBRUARY COLLECTIONS, WHICH WAS THOSE DECEMBER SALES. SO THOSE CHRISTMAS SALES. SO THIS IS SOMETHING WE CONTINUE TO MONITOR. YOU KNOW, THERE'S A LOT OF THINGS THAT GO INTO SALES TAX REVENUE, A LOT OF THINGS OUT OF OUR CONTROL THAT DEPEND ON THE WIDER ECONOMY. SO WE'RE CONTINUING TO MONITOR THIS. WE CONTINUE TO WATCH THIS AS WE'RE BUILDING OUR PROJECTIONS FOR FISCAL YEAR 27 AND GOING FORWARD, GOING TO MAKE SURE WE'RE VERY CONSERVATIVE IN THOSE ESTIMATES.

AND BECAUSE THIS IS A HUGE PART OF OUR BUDGET, ALONG WITH PROPERTY TAX. ANY QUESTIONS ON THIS SLIDE OR THE LAST SLIDE. AND THEN THE NEXT SLIDE SHOWS IN KIND OF JUST I POPPED IN SOME REGIONAL BENCHMARK NUMBERS. YOU CAN SEE TERRELL AGAINST FORNEY, KAUFMAN, ROYSE CITY AND FATE. SO YOU CAN SEE THAT THIS IS THE CURRENT MONTH ALLOCATION FOR MAY, I BELIEVE, AND THEN SHOWING THE YEAR TO DATE AS WELL. YOU CAN SEE THAT MOST OF OUR NEIGHBORS ARE UP YEAR OVER YEAR AND WE'RE DOWN THAT 3.3%. SO THIS KIND OF JUST SHOWS THE REGIONAL PICTURE OF WHAT'S GOING ON. AGAIN, WE HAVE LOTS OF DEVELOPMENT COMING TO TERRELL, BUT THAT SALES TAX KIND OF FOLLOWS BEHIND THAT DEVELOPMENT AS WE GET PEOPLE IN THE CITY AND GET COMMERCIAL EXPANSION AS WELL. BUT NOTHING ON HERE IS CAUSING MARK OR I TO HAVE ANY CONCERN ABOUT OUR SALES TAX OR ANYTHING LIKE THAT, JUST NORMAL FLUCTUATIONS IN THAT. ANY QUESTIONS ON THIS SLIDE. OKAY. LASTLY ON THE GENERAL FUND WE'LL LOOK AT OUR EXPENDITURE PERFORMANCE. YOU

[00:30:01]

SO OVER 70% OF THE GENERAL FUND BUDGET IS PERSONNEL SERVICES, FOLLOWED BY CONTRACTUAL REPAIR AND MAINTENANCE AND A COUPLE OTHER CATEGORIES. WE'RE RIGHT ON LINE WHERE WE SHOULD BE FOR MOST OF OUR CATEGORIES EXCEPT FOR CONTRACTUAL AND OTHER CONTRACTUAL AGAIN, IS RELATED TO THE TEARS THING WE WERE TALKING ABOUT WITH THE PROPERTY TAX. THAT'S WHERE THE EXPENSE SIDE OF THAT IS. SO WE'RE SHOWING MORE REVENUE THAN WE BUDGETED, BUT WE'RE ALSO SHOWING MORE EXPENSE THAN WE BUDGETED. SO ESSENTIALLY IT GETS TO A ZERO DIFFERENCE ON THE OVERALL BUDGET ON THE BOTTOM LINE. SO THAT IS THE THAT'S EXPLAINING THAT VARIANCE.

AND THEN THE OTHER IS DRIVEN BY INSURANCE PREMIUMS AND SOME OF OUR STATE COURT COSTS RUNNING AHEAD OF WHAT WE BUDGETED. SO WE'RE CONTINUING TO MONITOR THOSE. AND WE ALWAYS CONTINUE TO MONITOR OUR INSURANCE PREMIUMS. BUT AS YOU KNOW, INSURANCE CONTINUES TO INCREASE YEAR OVER YEAR. AND THAT'S GOING TO BE MORE LIKE YOUR PROPERTY CASUALTY INSURANCE, WORKER'S COMP AND THINGS ALONG THOSE LINES. YOU MENTIONED COURT COSTS IN OTHER. SO. IS THAT WHAT IS THAT? SO ESSENTIALLY, THE CITY COLLECTS FINES AND FEES FROM PEOPLE WHO HAVE OR ISSUE TICKETS. AND WE GET TO KEEP PART OF THAT IN A LARGER. I MEAN, HALF OF THAT OR SO IS SENT BACK TO THE STATE. SO ESSENTIALLY THAT'S WE'RE SENDING MORE BACK TO THE STATE THAN WE THOUGHT WE WERE AT THIS GOING TO AT THIS POINT IN THE YEAR. OKAY. THANK YOU.

MUNICIPAL COURT. YES. MUNICIPAL COURT. YEAH. SO YOU HAD MENTIONED THAT 70% OF OUR EXPENDITURES ARE RELATED TO PAYROLL STAFFING. YES, SIR. IS THAT COMMON FOR MUNICIPALITIES TO BE AT THAT LEVEL? WE'RE NOT TOO HIGH OR TOO LOW. THAT IS VERY COMMON. MOST MUNICIPALITIES, THE GENERAL FUND, ESPECIALLY THE MOST THE LARGEST PART OF THAT WILL BE PAYROLL. THAT'S. YOU GOT TO THINK THAT'S WHERE FIRE. THAT'S WHERE POLICE IS THOSE VERY PAYROLL HEAVY DEPARTMENTS, AS WELL AS EVERY OTHER KIND OF GENERAL DEPARTMENT IN THE CITY TRYING TO CLARIFY FOR THE COUNCIL. YES, SIR. YOU KNOW THAT WE'RE ALL ON BOARD. OKAY, GOOD. ANY OTHER QUESTIONS THERE BEFORE I MOVE ON? OKAY. SO NOW WE'LL SWITCH GEARS AND WE'LL LOOK AT THE WATER AND SEWER FUND. SO UNLIKE THE GENERAL FUND, THE WATER AND SEWER FUND IS AN ENTERPRISE FUND. AND ESSENTIALLY IT RUNS MORE LIKE A BUSINESS THAN THE GENERAL FUND DOES. SO IT'S FUNDED BY RATES THAT CUSTOMERS PAY INTO THE SYSTEM INSTEAD OF TAXES. SO IT IS FUNDED THAT WAY. YOU CAN SEE THAT WE ARE OUR NET POSITION OF $42 MILLION. AT THE END OF THE PERIOD, WE HAD 12.8 MILLION IN REVENUE AGAINST 24.5 MILLION AS OUR ANNUAL BUDGET. SO WE'RE ABOUT 52% OF REVENUE, WHICH IS RIGHT ON POINT FOR THIS TIME OF YEAR. AND OUR OPERATING EXPENSES ARE 6.4 MILLION AGAINST 17.9 MILLION. SO ABOUT 36% OF THAT. A LOT OF THAT HAS TO DO WITH CAPITAL TIMING, WITH BRINGING BERNIE AND NEW TEAM MEMBERS ON BOARD. THEY'RE REALLY LOOKING AT OUR CAPITAL PLAN AND SEEING WHERE WE NEED TO SPEND THOSE DOLLARS, AND MAKING SURE THAT ALL THOSE DOLLARS ARE GOING TO THE RIGHT PLACES. SO THERE'S BEEN SOME LAG ON SOME CAPITAL SPENDING, BUT WE EXPECT TO SEE THAT NORMALIZE AS THOSE PROJECTS GET OUT THERE AND WE GET OUR PRIORITIES IN IN LINE. YOU CAN ALSO SEE OUR WATER SALE HIGHLIGHTS. WATER SALES, OF COURSE, ARE OUR BIGGEST REVENUE SOURCE $8.1 MILLION YEAR TO DATE. THAT IS AGAINST A BUDGET OF 15.6 MILLION. SO THAT'S ABOUT 52% OF THAT BUDGET.

THAT'S RIGHT ON PACE AT MID-YEAR. SO WE'RE RIGHT WHERE WE WANT TO BE ON OUR WATER SALES. THE SUMMER IS COMING UP, SO WE OFTEN SEE HIGHER USAGE IN THE SUMMER. SO THAT RESULTS IN HIGHER WATER SALES. SO THERE'S NOTHING THERE THAT GIVES ME ANY CONCERN ABOUT OUR WATER SALES FOR THE CURRENT YEAR. THE CHANGE IN NET POSITION IS RIGHT NOW COMING IN AT 4.1 MILLION.

SO THAT'S ESSENTIALLY WHAT WE CHANGE FROM LAST YEAR TO THIS YEAR VERSUS 2.8 MILLION BUDGETED. SO WE'RE A LITTLE OFF OF THE BUDGET. BUT AGAIN, THAT'S A TIMING ISSUE. WE'RE HALFWAY THROUGH THE YEAR. SOME OF THOSE CAPITAL EXPENDITURES ARE LAGGING BEHIND. AND WE EXPECT TO SEE US COME IN WHERE WE'RE EXPECTING NEAR THE END OF THE YEAR. SO IS THE 8.1 MILLION.

THAT INCLUDES WHOLESALE SALES TO THE VARIOUS WATER SUPPLIES? YES, AS WELL. OUR WHOLESALE OKAY, INCLUDING OUR OUR CUSTOMERS AND OUR WHOLESALE CUSTOMERS. OKAY. ALL RIGHT.

JUST THE WATER SALES, NOT THE SEWER SIDE OR ANYTHING. RIGHT, RIGHT. OKAY. ANY QUESTIONS ON THIS SLIDE BEFORE I MOVE ON? THIS ONE KIND OF GIVES YOU A BETTER LOOK AT THE WATER AND FUND THE OPERATING REVENUES AND THE EXPENSES. YOU CAN SEE OUR OPERATING INCOME IS 6.4 MILLION CURRENTLY INTEREST EXPENSE OF 1 MILLION. WE DO MAKE OUR DEBT SERVICE PAYMENTS TWICE IN A YEAR. SO WE MAKE THOSE PAYMENTS IN FEBRUARY AND AUGUST. SO WE'VE MADE OUR FIRST DEBT SERVICE PAYMENT FOR THE YEAR. WE'LL HAVE OUR NEXT DEBT SERVICE PAYMENT COMING UP IN OUR IN AUGUST. AGAIN, EVERYTHING'S COMING IN RIGHT WHERE WE THOUGHT OUR MAJOR EXPENSE IS OUR NORTH TEXAS, NORTH TEXAS MUNICIPAL WATER DISTRICT WATER PURCHASES. WE ARE AT THREE, $3.3 MILLION HALFWAY THROUGH THE YEAR, WHICH IS HALF OF OUR $6.7 MILLION

[00:35:03]

SO THAT IS THE PRESENTATION. SO LOOKING AHEAD, AS I MENTIONED EARLIER, THE FISCAL YEAR 2017 BUDGET PROCESS IS UNDERWAY. MARK AND I ARE WORKING THROUGH THAT. WE'VE HAD THE DEPARTMENTS GO THROUGH THE FIRST ROUND OF PUTTING THEIR REQUESTS IN THERE. WE'RE CURRENTLY REVIEWING THAT IN THE FINANCE OFFICE, AND THEN WE'LL BE REVIEWING IT WITH MARK AND THE TEAM, AND THEN WE'LL CONTINUE TO GO ALONG IN THAT PROCESS. AND AS I SAID, AS PART OF THAT PROCESS, WE DO KIND OF DO A SECOND LOOK AT FISCAL YEAR 26, THE CURRENT FISCAL YEAR, TO MAKE SURE THAT WE KNOW WHERE WE'RE GOING TO END UP AND WHAT KIND OF FUND BALANCES WE'RE GOING TO BE LOOKING AT GOING INTO THE NEXT FISCAL YEAR. WE ARE ALWAYS CONTINUING TO MONITOR SALES TAX AND OTHER KEY REVENUES AGAINST PRIOR YEAR TRENDS. THAT'S SOMETHING WE CONTINUE TO LOOK AT EACH MONTH AS IT COMES IN, MAKING SURE THERE'S NOTHING THERE THAT SHOWS US CONCERN. IF THERE WAS, WE'D BRING IT TO YOUR ATTENTION AND LET YOU KNOW. BUT AS OF RIGHT NOW, THERE'S NOTHING THAT REALLY SHOWS US ANY ANY DOOMSDAY TRENDS OR ANYTHING LIKE THAT. AGAIN, AS I KIND OF STATED EARLIER, WE'RE PLANNING ON DOING A MONTHLY MEMO AND FINANCIALS TO COUNCIL. AND THEN SO THE NEXT ONE Y'ALL WILL GET FOR THAT WOULD BE APRIL OF 26. AND THEN THE NEXT FULL QUARTERLY PRESENTATION WOULD BE FOR JUNE 30TH OF 2026, KIND OF GETTING ON A GOOD QUARTERLY CADENCE. SO WE KEEP YOU ALL INFORMED ON WHAT'S GOING ON. AND THEN ON TOP OF ALL THIS, IN FINANCE, WE'RE CONTINUING TO BUILD FINANCE, INFRASTRUCTURE AND INTERNAL CONTROLS. WE'RE WORKING ON POLICIES AND PROCESSES TO MAKE SURE WE'RE READY FOR THE NEXT AUDIT AND READY TO GET THIS BUDGET SEASON PASSED US AS WELL. SO BEEN A LOT OF WORK. WE HAVE A GREAT TEAM OVER THERE. I'M EXCITED FOR THE WORK WE'VE DONE AND EXCITED FOR WHAT'S AHEAD. SO MATT, THANK YOU VERY MUCH FOR THE PRESENTATION. WE WAITED A LONG TIME TO BE ABLE TO GET FINANCIALS TO THIS BOARD. IT'S VITAL THAT WE HAVE THOSE RIGHT. AND IT LOOKS LIKE MARK, Y'ALL ARE MOVING IN THE RIGHT DIRECTION. THANK YOU. THE OTHER THING I WOULD TELL YOU AND YOU MENTIONED IT YOURSELF IS IF YOU EVER NOTICE OR, OR FEEL THE NEED TO BRING SOMETHING TO OUR ATTENTION THAT PLEASE DO SO EVEN THOUGH IT'S NOT ON A SCHEDULE MEETING, LET US KNOW AND WE CAN PUT IT ON THE AGENDA AND ADDRESS THE COUNCIL WITH IT. YES, I THINK THAT'S THE THAT'S WHERE WE LACKED IS HAVING THAT INFORMATION TO MAKE SOUND GOOD JUDGMENT CALLS ON SOME OF THE STUFF THAT WE SEE. SO THAT'S WONDERFUL. ANYBODY GOT ANY ANY REMARKS? I JUST WANT TO REITERATE. THANK YOU GUYS SO MUCH, MARK AND MATT, BOTH OF YOU, BECAUSE THIS IS SOMETHING THAT IT REALLY ENABLES US TO MAKE INTELLIGENT DECISIONS ON THIS BOARD. AND IT WAS SOMETHING THAT WAS SORELY LACKING WITH OUR PREVIOUS ADMINISTRATION. AND I FEEL LIKE WITH THIS THIS NEW DIRECTION HERE AND GETTING THIS THIS REPORT PROVIDED TO US ON A REGULAR BASIS, WE'RE GOING TO BE ABLE TO DO IT, DO A LOT MORE GOOD FOR THE CITY. SO THANK YOU SO MUCH FOR YOUR EFFORTS ON IT. YEAH, I AM, I'VE BEEN WAITING FOR THIS FOR A LONG TIME. AND SO I AM EXTREMELY I WILL NOT JUMP UP AND DOWN ON THE DAIS, BUT I AM VERY HAPPY. I KNOW YOU, I'M GOING TO LOOK AT YOU AS THE AS THE DEPARTMENT THAT NO ONE SEES. BUT WHEN IF WE DON'T HAVE A FINANCE DEPARTMENT, NOTHING ELSE EXISTS. AND YOU ARE RESPONSIBLE FOR THAT. AND I APPRECIATE YOU AND THE HARD WORK THAT YOUR TEAM DID, THE HOURS IT TOOK TO JUST TURN THIS SHIP AROUND. THANK YOU VERY MUCH. THANK YOU. YES, SIR. THANK YOU. ON MY END, IT'S THIS IS FAIRLY NEW TO ME. YES, SIR. BUT I THANK YOU FOR THE INFORMATION HERE. AND IF I HAVE ANY QUESTIONS, I'LL BE GLAD TO REACH OUT TO YOU GUYS. AND, YOU KNOW, JUST TO GET SOME CLARIFICATION ON SOME OF THESE NUMBERS. BUT BY LOOKING AT THIS MAN, JUST JUST LOOKING AT WHAT THE SALES TAX THAT'S THAT'S GREAT THAT WE'RE DOING REAL GOOD COMPARED TO ALL THE OTHER CITIES. YEAH. EVEN THOUGH IT LOOKS LIKE WE'RE DOWN YEAR TO END, BUT WE'RE STILL BRINGING IN STILL BRINGING IN A LOT THAN EVERYBODY ELSE. SO IT MEANS WE'RE DOING A GOOD JOB. THANK YOU. I THINK IN RECENT YEARS WE'VE WE'VE OUT COMPETED FORNEY FOR SALES TAX EVEN THOUGH WE'VE HAD LESS DEVELOPMENT. SO THAT'S PRETTY IMPRESSIVE. OH, YES. AWESOME. THANK YOU. I DO THINK WE NEED TO KEEP AN EYE ON THE FACT THAT, YOU KNOW, SOME OF THE NEW THINGS THAT ARE HAPPENING THERE COULD POTENTIALLY DIVERT FOLKS FROM OUR BUSINESSES SALES TAX WISE, LIKE NEW GROCERY STORES, THINGS OF THAT NATURE. AND WE NEED TO MAKE SURE WE'RE STAYING ON

[8. BUSINESS ITEMS]

[00:40:04]

SO WE'LL WE'LL GET CAUGHT UP ON LAND ACQUISITIONS AND ANNEXATION, BUT THIS AMENDMENT JUST SIMPLY CLARIFIES WE REALLY ENJOY THIS DEVELOPER BECAUSE THEY BRING FORWARD THESE AMENDMENTS AS WE WORK THROUGH EACH OF THOSE ACQUISITIONS. AND SO THIS IS JUST AN UPDATE TO LET YOU KNOW WHAT WE'VE DONE SO FAR AND WHAT'S LEFT. OKAY. DOES ANYBODY HAVE ANY QUESTIONS FOR RAY ALLEN ON THIS MATTER? HEARING NONE, WE'LL ENTERTAIN A MOTION ON RESOLUTION NUMBER 2319. MOTION TO APPROVE RESOLUTION NUMBER 2319. HAVE A MOTION. IS THERE A SECOND? SECOND, WE HAVE A MOTION FROM PHIL ROBERTSON, OUR DISTRICT FIVE REPRESENTATIVE. I HAVE A SECOND FROM DONNA RENEE ANDERSON, MAYOR PRO TEM FROM DISTRICT TWO, TO APPROVE RESOLUTION 2319 AS PRESENTED. IS THERE ANY FURTHER DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR, LET IT BE KNOWN BY STATING I, I ANY OPPOSED MOTION CARRIES AN INDIVIDUAL'S PRESENT.

OUR NEXT ITEM ON THE AGENDA IS. 8.2 DISCUSS AND CONSIDER RESOLUTION NUMBER 2320 APPROVING A DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF TERRELL, TEXAS AND ASTRA INVESTMENTS. G P GENERAL PARTNERS, LLC FOR THE DEVELOPMENT KNOWN AS MOORE FARM WATER CONTROL AND IMPROVEMENT DISTRICT. NUMBER ONE AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENT AND PROVIDING AN EFFECTIVE DATE. RAYMOND, WHAT YOU HAVE IN YOUR PACKET IS THE FINAL DRAFT OF THIS DEVELOPMENT AGREEMENT. AS STATED, THIS DEVELOPMENT IS ACTUALLY LOCATED WITHIN THE ETJ WITH THE CITY OF TERRELL. THIS DEVELOPER APPROACHED THE CITY THAT WHAT THEY ARE WANTING TO DO IS EXTEND THE CITY INFRASTRUCTURE TO BECOME WATER AND WASTEWATER CUSTOMERS OF THE CITY. THIS WOULD ALL BE AT THE DEVELOPER EXPENSE, AND SO IT WOULD BE A CUSTOMER REVENUE WITH THE CITY OF TERRELL. INITIALLY, THEY HAD WANTED TO DISCUSS ANNEXATION OR POSSIBLE ANNEXATION OF THE ENTIRE DEVELOPMENT, AND WE WERE ABLE TO NEGOTIATE THAT ONCE THEIR BONDS WERE PAID BACK FOR THEIR MUD AND THE ACTIVITY THAT THEY HAVE WITHIN THE DEVELOPMENT, WHICH WILL BE 30 PLUS YEARS. THE CITY COUNCIL AT THAT TIME CAN DECIDE IF THEY WANT TO ANNEX THE PROPERTY. SO THIS IS A GOOD WAY FOR US TO BUILD OUR CUSTOMER BASE ON WATER AND WASTEWATER WITHOUT HAVING TO TAKE ON THE PROPERTY RESPONSIBILITY OF AN ANNEXATION, AND YOUR RECOMMENDED WE MOVE FORWARD WITH THAT. OKAY. DOES ANYBODY HAVE ANY QUESTIONS? SO 30 YEARS FROM NOW, THEY'LL OR WHEN WHENEVER THE DEBT SERVICE IS BUILT OUT. YEAH, WHEN IT'S BUILT OUT. SO IF IT TAKES LONGER, IT'LL BE LONGER. YES.

MINIMUM 30 YEARS. OKAY. THE CITY COUNCIL WILL HAVE THE OPTION AT THAT TIME. THERE IS NO GUARANTEES THAT THE PROPERTY WOULD BE ANNEXED INTO THE CITY LIMITS. OKAY. ALL RIGHT.

COUNCIL, ANY QUESTIONS? IS THERE A MOTION ON RESOLUTION NUMBER 2320. SO MOVED. WE HAVE A MOTION. IS THERE A SECOND? SECOND. WE HAVE A MOTION FROM DONNA RENEE ANDERSON, OUR MAYOR PRO TEM DISTRICT TWO, TO APPROVE RESOLUTION NUMBER 2320. A SECOND FROM JORGE VARGAS, DISTRICT THREE. IS THERE ANY FURTHER DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR, LET IT BE KNOWN BY STATING I. AYE. ANY OPPOSED? MOTION CARRIES A VOTE OF PRESENT. OUR NEXT ITEM ON THE AGENDA IS 8.3 DISCUSSING. CONSIDER RESOLUTION 2321 APPROVING THE FIRST AMENDMENT TO THE ARBORETUM ESTATES DEVELOPMENT AGREEMENT. AUTHORIZING THE CITY MANAGER TO FINALIZE AND EXECUTE SAID AMENDMENT ON BEHALF OF THE CITY AND PROVIDING AN EFFECTIVE DATE.

RAYMOND MAYOR, CITY COUNCIL, IN YOUR PACKET IS THE FINAL DRAFT AGREEMENT. THIS WILL BE THE FIRST AMENDMENT TO THE ARBORETUM DEVELOPMENT AGREEMENT. AS YOU KNOW, THIS IS A BIG DEVELOPMENT AND THERE ARE SOME STREETS THERE. WE ARE IN CONSTANT CONTACT WITH THIS DEVELOPER, AND WE KNEW WHEN THAT DEVELOPMENT AGREEMENT WAS BROUGHT FORWARD TO YOU, THAT THERE WOULD BE CONTINUED COORDINATION WHEN IT COMES TO ROADWAY INFRASTRUCTURE, AS WELL AS THE TEX-DOT COORDINATION. SO THE MAJOR AMENDMENTS UPDATE THE CONCEPT PLAN TO MAKE SURE THAT

[00:45:02]

OKAY. AND WE'RE THAT'S STAYING THE SAME, THE PHASING AS FAR AS KIND OF HOW ALL THAT'S ORDERED.

YES. THE PHASING, WE WENT IN AND CALCULATED THE NUMBER OF LOTS AND THE SIZE OF LOTS. SO ANYTIME THEY MOVE THOSE LINES, IF IT CHANGED WHAT THEY WERE DELIVERING, WE WOULD HAVE BROUGHT THAT FORWARD. OKAY. BUT THEY KEPT THEIR LOT SIZES AND THOSE COUNTS THE SAME. OKAY.

AND I KNOW THAT WE HAD DISCUSSED SOME REGARDING HOW WE, YOU KNOW, THE PLANS AND THE STANDARDS THAT, THAT, THAT THESE DEVELOPERS ARE FORCED TO ADHERE TO AND HOW WE KIND OF IT PUTS US IN A POSITION WHERE WE HAVE TO KIND OF BUILD THE SAME HOUSE OVER AND OVER AGAIN. DO YOU FEEL LIKE WE'VE ADDRESSED THAT ENOUGH, OR THAT WE NEED TO DO ADDITIONAL WORK TO? IS THAT INCLUDED HERE TO MAKE ANY ADJUSTMENTS TO THAT, OR. THERE WERE NO THE DEVELOPMENT STANDARDS ARE WITHIN THE PLAN DEVELOPMENT ORDINANCE. SO THE DEVELOPMENT STANDARDS ARE NOT ACTUALLY LISTED IN THE DEVELOPMENT AGREEMENT ITSELF. OKAY. WE HAVE TALKED WITH THAT DEVELOPER THAT, YOU KNOW, THIS ITEM HAS COME UP IN OTHER DEVELOPMENTS AND JUST LET HIM KNOW THAT WE WE'RE GLAD TO DISCUSS THAT IN FUTURE PHASES. OKAY. SO WE CAN PUT ONE AND TWO DONE. YOU DON'T WANT THREE AND FOUR TO CONTINUE TO LOOK THE SAME. YES, EXACTLY. SO WE CAN REVISIT THAT AT A LATER DATE, EVEN AFTER WE APPROVE THIS PARTICULAR RESOLUTION. IT WOULD BE PART OF THE PLAN DEVELOPMENT EXPANDING OUR OKAY, I LIKE IT. THANK YOU. ANYONE ELSE? ALL RIGHT. IS THERE A MOTION ON RESOLUTION 2321. I'LL MAKE A MOTION TO APPROVE RESOLUTION RESOLUTION 2321. I HAVE A MOTION. IS THERE A SECOND? SECOND. WE HAVE A MOTION FROM JORGE VARGAS, DISTRICT THREE, A SECOND FROM DONNA RENEE ANDERSON, MAYOR PRO TEM DISTRICT TWO, TO APPROVE RESOLUTION 2321 AS PRESENTED. IS THERE ANY FURTHER DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR, LET IT BE KNOWN BY STATING I. AYE. ANY OPPOSED?

[9. ADJOURN INTO EXECUTIVE SESSION IN ACCORDANCE WITH SECTION 551 OF THE TEXAS GOVERNMENT CODE TO DISCUSS THE FOLLOWING]

[10. RECONVENE INTO REGULAR SESSION AND CONSIDER ACTION, IF ANY, ITEMS DISCUSSED IN EXECUTIVE SESSION]