[00:00:01]
WE'LL GO AHEAD AND CALL THE MEETING TO ORDER THE TIME OF 6 36.EVERYONE CAN STAND FOR THE INVOCATION OF UNDER PLEDGE.
MS. BOWER HEADS IN PRAYER THIS EVENING.
DEAR HEAVENLY FATHER, WE'RE THANKFUL FOR THIS DAY.
WE'RE THANKFUL FOR THE BLESSINGS THAT EACH OF US HAVE, AND I PRAY THAT, UH, YOU WOULD JUST BE WITH US AS WE, UH, DELIBERATE.
THE, THE ACTIONS AND THE THINGS NECESSARY FOR THE CITY OF AUBREY GIVE US WISDOM AND GUIDANCE.
THE SPIRIT OF COOPERATION, HUMILITY, AND, AND WISDOM, AND THE, AND THE FORTITUDE TO SPEAK UP AND SPEAK OUR MIND WHEN THAT'S TIME AND PLACE TO DO SO IS SAY A SPECIAL PRAYER THIS EVENING FOR THE FA FRIENDS AND FAMILY OF THE PASSING OF JIM SABONI.
UM, IT'S ALWAYS DIFFICULT, UM, ESPECIALLY IN TIMES LIKE THIS, AND WE PRAY FOR A SPECIAL PRAYER OF BEREAVEMENT FOR THE FAMILY.
LET YOUR PEACE AND LET YOUR COMFORT BE WITH THEM IN THIS TIME.
FOR ALLEGIANCE TO DO FLAG OF THE UNITED STATES OF AMERICA AND THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE, OR ALL HONOR THE TEXAS FLAG.
I PLEDGE ALLEGIANCE TO BE TEXAS, ONE STATE UNDER GOD, ONE AN INDIVIDUAL
[Community Announcements]
COMMUNITY ANNOUNCEMENTS.ANYBODY GOT ANYTHING? I DO, MAYOR.
I WANTED TO THANK YOU ALL FOR COMING AGAIN FOR A SPECIAL MEETING TO DISCUSS THE TAX RATE.
I KNOW THIS IS AN IMPORTANT TIME FOR US, SO WE REALLY APPRECIATE STAFF, REALLY APPRECIATE YOU GIVING US THIS TIME AND, UH, SETTING THE PUBLIC HEARING FOR THE NEXT MEETING.
SO THANK YOU FOR BEING HERE TONIGHT.
UH, WHILE WE'RE HERE, I WANT TO INTRODUCE YOU TO, UH, MARISSA NEWTON.
SHE HAS BEEN, SHE HAS ACCEPTED THE POSITION OF CONTROLLER WITH MY FINANCE DEPARTMENT.
SHE COMES TO US, UH, BY WAY OF SANGER.
SHE'S BEEN THE FINANCE DIRECTOR THERE FOR OVER TWO YEARS.
AND BEFORE THAT SHE SPENT HOW MANY YEARS AT DENTON? UH, NINE AND A HALF, NINE AND A HALF YEARS FOR THE CITY OF DENTON.
SHE DID FLEET, SHE DID BUILDING MAINTENANCE, UH, SPREADSHEETS.
SO WE ARE REALLY HAPPY TO HAVE HER HERE.
UH, WE'RE EXCITED FOR THE 17TH FOR HER TO BE HERE.
DID YOU WANNA SAY ANYTHING? OH, NO.
I JUST THANK YOU SO MUCH FOR ALLOWING ME THE OPPORTUNITY TO WORK HERE AND EVERYONE HAS BEEN SUPER WONDERFUL AND SO KIND.
SO I HOPE LOOK FORWARD TO GETTING TO WORK WITH YOU ALL SOME MORE, HOPEFULLY SOONER RATHER THAN LATER.
SHE DID TELL US AFTER THE INTERVIEW THAT SHE WAS, SHE LEFT SO EXCITED AND SHE REALLY WANTED TO COME TO AUBREY BECAUSE IT, SHE LIVES IN SANGER AND IT WAS CLOSE AND SHE WAS REALLY LOVED THE ATMOSPHERE AND THE STAFF, AND SO SHE'LL BE PART OF US NOW.
[1. Discussion regarding the proposed 2026 Tax Rate and action on a Resolution to set a public hearing date for August 27, 2026, and scheduling a vote on the tax rate for August 27, 2026. An action taken on this item at this meeting will not adopt a tax rate.]
BUSINESS AND A DISCUSSION REGARDING PROPOSED 2026 TAX RATE AND ACTION ON OUR RESOLUTION TO SET A PUBLIC HEARING DATE.SO MARISSA, YOU LIVE IN SANGER AND YOU'RE A COUNCIL PERSON IN SANGER, BUT YOU WERE WORKING IN AR ARGO.
UH, MAYOR COUNCIL, UM, THIS SHEET, IT'S A LITTLE BUSY, BUT I'VE BROKEN IT INTO THREE SECTIONS.
THE UPPER LEFT IS THE CURRENT BUDGET, AND I JUST WANT TO LET YOU KNOW THAT THIS IS THE UPDATED BUDGET.
WE'VE ADDED ALL THE SU THE PROOF SUPPLEMENTS, UH, INCLUDING THE TMRS AND COLA DECISIONS THAT WERE MADE LAST WEEK.
WE ALSO USED 45 CENTS AS THE TAX RATES IN OUR ESTIMATES.
UM, AND IF YOU LOOK, YOU CAN SEE THE GENERAL FUND, THE WATER SEWER, AND THE MDD ALL HAVE, UH, SURPLUSES.
THE OTHER SECTION AND, AND THE ASSUMPTIONS.
I JUST UPDATED THE ASSUMPTIONS REAL QUICKLY.
THIS, THE COLA HAS CHANGED TO 4% AND THE TMRS TO 13.5.
SO THOSE WERE THE UPDATES THAT WE ADDED JUST RECENTLY.
UM, THE RIGHT HAND QUADRANT IS THE TAX RATE SUMMARY, SO IT'S KIND OF SMALL, BUT YOU HAVE IT IN FRONT OF YOU.
IT'S THE, THE TNT TRANSPARENCY WORKSHEET.
UH, CALCULATIONS SHOW THE NO NEW REVENUE RATE OF 47 CENTS, THE VOTER APPROVAL RATE OF 60 CENTS AND THE DE MINIMIS RATE OF 52.
OUR CURRENT TAX RATES ARE RIGHT BELOW THAT.
THE M AND O CURRENTLY, OR THE TOTAL IS 45.
[00:05:02]
WELL LOOK AT THAT.UH, THE M AND O IS 30, UH, 0.3 0 7 2 8 7.
THE, IF WE USE THE SAME 45 CENTS GOING FORWARD, THE M AND O RATE CHANGES TO 29 7 2, 7 6 VERSUS THE 30.
AND THE INS CHANGES FROM 14 TO 15, BUT THE TOTAL STAYS THE SAME.
SO JUST TO GIVE YOU A LITTLE BACKGROUND ON WHERE WE'RE AT, UM, TO KIND OF HELP THE DISCUSSION, UM, THE BUDGET, UH, LOOKS GOOD.
WE'VE, UH, WE'VE BUILT IN SOME DOWNSIDE PROTECTIONS.
UM, THE SURPLUS OF 252, UH, SHOULD HELP US.
UM, BUT LIKE I SAY, WE'VE, WE'VE BEEN CONSERVATIVE WITH THAT.
UH, WATER SEWER FUND LOOKS GOOD.
UM, AND THE MDD ALSO HAS A, UH, SURPLUS, I GUESS WE'RE GONNA OPEN UP THE DISCUSSION ON THE, THE TAX RATE AND I CAN ANSWER ANY QUESTIONS, HOPEFULLY DISCUSSION ON THE RIGHT.
YOU'RE SAYING THAT ALL THE CALCULATIONS AND, UM, THE BUDGETING IS ALL CONSERVATIVE, AND EVEN WITH THAT CONSERVATIVE APPROACH, WE'RE STILL WOULD BE SHOWING AT THE CURRENT 45 CENT RATE, WE'D STILL BE SHOWING A SURPLUS OF ABOUT 252? THAT'S CORRECT.
YES, WE BUILT IN ALL THE KNOWN EXPENSES, ALL THE KNOWN REVENUES.
UM, WE DO, WHEN WE BUILD THE BUDGET, WE ASSUME THE NEW HIRES START ON THE 1ST OF OCTOBER.
THE ONLY EXCEPTION TO THAT IS WE ARE, UH, STAGGERING THE POLICE HIRES, BUT WE'VE DONE THAT FROM THE START.
UM, THE OTHER THING IS WE DON'T, UH, BUILD IN ANY SAVINGS FROM ATTRITION WITH 176 EMPLOYEES.
WE DO HAVE ATTRITION AND IT DOES TAKE TIME TO HIRE THEM.
SO THAT'S, WE ASSUME THAT'S NOT GONNA HAPPEN.
WE ASSUME FULL 12 MONTHS FOR THE BUDGET.
UM, THOSE TWO THINGS ALONE HAVE A BIG IMPACT.
THE ADDITIONAL THING WE DO IS WE'RE VERY CONSERVATIVE WITH THE GROUP INSURANCE, SO WE ASSUME THE HIGHEST COST FOR THAT.
WE ASSUME UNKNOWN COST INCREASES JUST IN CASE.
SO WE BUILD IN A LITTLE BIT OF CUSHION FOR THAT TO PROTECT US FROM UNKNOWNS THERE.
BUT FOR THE MOST PART, UH, THAT PROVIDES US WITH SOME DOWNWARD DOWNSIDE PROTECTION, UH, FOR SOME, YOU KNOW, ANYTHING THAT'S UNKNOWN.
DO WE HAVE ANY INDICATION FROM THE INSURANCE PEOPLE WHAT RATES ARE GONNA COME IN AT? WE DO NOT.
MY LAST CONVERSATION WITH HIM, HE LEFT ME A VOICEMAIL THIS AFTERNOON.
UM, BUT MY LAST CONVERSATION WAS HE THINKS THAT BLUE CROSS AND BLUE SHIELD WOULD BE DOWN TO 9%.
UH, AND THEN WE WANT TO ADD A NEW HRA, UH, OPTION.
IT'LL BE RAISING OUR DEDUCTIBLE FROM 5,000 TO 7,500, AND THEN THE CITY WOULD COVER THE 2,500 BETWEEN 5,070 500 THROUGH AN HRA.
AND THAT'LL BRING OUR RATES DOWN EVEN FURTHER.
BUT WE ALSO, UH, IF WE HAD A PROBLEM, MIKE IS CORRECT, WE ARE VERY CONSERVATIVE.
UH, WE HAVE ALMOST A MILLION DOLLARS IN THE BENEFIT FUND.
SO IF IT DID COME IN OVER THIS 10, OVER THIS 10% FOR SOME UNKNOWN REASON, WHICH I DOUBT VERY SERIOUSLY, WE COULD DIP INTO THAT SURPLUS AND ASSIST AND NOT PASS ON ANY RATES TO OUR EMPLOYEES OR INCREASE THE BUDGET.
I THINK ANOTHER BIG, ANOTHER BIG FACTOR THAT'S NOT CONSIDERED IN THE TNT IS NEW CONSTRUCTION.
THEY, THEY ELIMINATE THAT FROM THE CALCULATION, BUT IF HE DID THE MATH, THAT'S ANOTHER $200,000 THAT IS OUT THERE THAT WILL BE COLLECTED OVER THE NEXT FISCAL YEAR THAT WE'RE NOT EVEN COUNTING.
SO THIS 2 52 IS ACTUALLY 4 52.
IF YOU COUNT NEW CONSTRUCTION.
WHAT DO YOU MEAN BY NEW CONSTRUCTION? ANYTHING THAT WAS NOT ON THE GROUND ON JANUARY ONE LAST YEAR? BECAUSE WE, WE COLLECT TAXES BASED ON THE SAME NUMBER OF HOMES AS WE DID LAST YEAR, AND IF THEY WEREN'T THERE JANUARY ONE, THEY'LL COUNT IN THE RATE, BUT THEY ARE THERE AND WE WILL COLLECT THE TAX ON THEM.
JUST THEY'RE NOT COUNTED IN THE RATE.
YEAH, THERE'S A LITTLE BIT OF A LAG FROM THE TIME THE HOUSE GETS BUILT TILL THE TIME YOU ACTUALLY START
[00:10:01]
COLLECTING TAXES ON.I'VE, I'VE TOLD THE MAYOR FROM THE START OF THE BUDGET THAT, UH, STAFF, MIKE AND I, WE ARE VERY COMFORTABLE AT 45 MAINTAINING THE RATE.
UH, IF THAT'S WHAT THE COUNCIL WANTS TO DO, WE THINK WE'VE BUILT A SOLID BUDGET AROUND THAT RATE.
UH, AND YOU'LL EITHER BE FLAT OR YOU WILL, UH, COLLECT MORE TAX THAN LAST YEAR BASED ON THE NEW DEVELOPMENT.
I, I DON'T KNOW IF Y'ALL PAID ATTENTION TO OTHER CITIES, BUT WE'RE KIND OF SITTING IN OUR, IN A DIFFERENT SITUATION OUT OF ALL OF OUR NEIGHBORS THAT WE'VE SEEN SO FAR, AND THEY'VE ALL LOST VALUE AND WE'RE ON THE BLACK.
SO WE GAINED 20 MILLION IN VALUE.
SOME HAD, SOME HAD LOST A GREAT NUMBER, EVEN WITH THE LOSS IN WIND RIDGE, WE'RE STILL IN THE BLOCK.
KRUGER LOST $10 MILLION IN VALLEY HILL GROWTH.
THAT'S GONNA IMPACT A SMALL CITY LIKE THEIRS, YOU KNOW? OR WHAT WAS YOUR LAST SENTENCE, MAYOR? I'M SORRY.
I SAID THAT $10 MILLION ON THE CITY, THE SIZE OF KRUGER IS GONNA IMPACT THEM.
AND, AND THE REVENUE FROM PROPERTY TAX MAKES UP ABOUT WHAT YOU WERE SAYING, 12.9%.
WE'VE BEEN SAYING 13 FOR THE LONGEST TIME.
SO IT'S A SMALL PERCENT OF OUR TOTAL REVENUE, MAINLY BECAUSE OF THE SERVICE INCOME WE GET FOR POLICE AND FIRE.
BUT ALSO WE'RE VERY ACTIVE WITH PERMITTING RIGHT NOW.
SO THERE'S A LOT OF REVENUE FROM PERMITTING, AND THAT DOESN'T INCLUDE IMPACT FEES THAT ARE COMING IN.
UM, SO MY POINT IS THE A A SMALL REDUCTION OR A FLAT YEAR OVER YEAR IN PROPERTY TAX HAS A MINIMAL EFFECT, MINIMAL EFFECT ON US CURRENTLY.
MIKE AND I DISCUSSED A STRATEGY THIS MORNING OF, SINCE WE ARE AT A, A SURPLUS OF 2 52, AND WE NORMALLY ENTER AROUND 500,000 OR UH, MORE.
I THINK LAST YEAR WAS 800,000 IS WHERE WE ENTERED.
UH, BECAUSE WE'RE AT 2 52, WE'RE NOT UNCOMFORTABLE, BUT WE WANNA WATCH IT AND WE'LL BE PAYING CLOSE ATTENTION TO OUR EXPENSES IN THE COMING THREE MONTHS, STARTING IN OCTOBER, JUST TO MAKE SURE WE'RE NOT OVERSPENDING.
AND IF WE NEED TO PULL BACK, YOU KNOW, WE'VE TALKED ABOUT THIS BEFORE, MAKING SURE WE HAVE BREAKERS IN PLACE, THAT IF WE DO SEE A SLOW DOWN OR SOMETHING COMING TO US WHERE WE HAVE A PROBLEM, WE CAN PULL BACK ON SOME OF OUR EXPENSE.
WELL, I CAN'T MAKE A MOTION, BUT I WOULD HELP YOU GUYS.
I JUST WANTED TO MAKE SURE THAT EVERYBODY WAS, I WOULD HELP YOU GUYS STAY AT 45.
I MEAN, CONSERVATIVELY STAFF IS VERY COMFORTABLE AT 45.
OKAY, MAYOR, I MAKE A MOTION TO APPROVE THE RESOLUTION RESOLUTION AND PROPOSE THE 2026 TAX RATE AS 45 CENTS AND SET A PUBLIC HEARING DATE AND VOTE ON THE PROPOSED TAX RATE FOR AUGUST 27TH, 2026 AT 6:00 PM AT THE AY CITY COUNCIL CHAMBERS.
2 2 6 COUNTRYSIDE DRIVE, ARBERY, TEXAS 7 6 2 2 7.
JEFF, HOW DO YOU VOTE? FOUR CANDACE.
CHUCK FOUR PASSES FIVE TO ZERO.