E. Consider, and act upon, a Preliminary Plat of the Sanden Heaven Addition, establishing 12 single family residential and one open space lot on 5.522 acres, generally located at the northwest corner of Sanden Blvd. and Brown St.

[E. Consider, and act upon, a Preliminary Plat of the Sanden Heaven Addition, establishing 12 single family residential and one open space lot on 5.522 acres, generally located at the northwest corner of Sanden Blvd. and Brown St.]

[00:10:09]

E. CONSIDER AND ACT UPON A PRELIMINARY PLAT OF THE SAND AND HEAVEN EDITION, ESTABLISHING 12 SINGLE FAMILY RESIDENTIAL AND ONE OPEN SPACE LOT ON 5.522 ACRES. GENERALLY LOCATED AT THE NORTHWEST CORNER OF SAND BOULEVARD AND BROWN STREET. MR. HASKINS? YES, SIR. SO THE APPLICANT IS REQUESTING THAT. THEIR THEIR PLAT BE APPROVED. IT'S A PRELIMINARY PLAT FOR 12 ACRES. IT'S THE PROPERTY IS CURRENTLY ZONED SP 1024. SO THE USE ITSELF IS ALLOWED BY. RIGHT.

THE APPLICANT DID REQUEST A COUPLE OF VARIANCES DUE TO PROPERTY CONSTRAINTS.

FLOODPLAIN. ON ONE SIDE THERE'S A AND IT'S ON A CORNER LOT THAT HAS A KIND OF AN ANGLE WEIRD CUT. AND WHEN THEY WENT TO ZBA THOSE DID GET APPROVED. AND I CAN ANSWER ANY QUESTIONS. MAYOR, I JUST WANTED TO POINT OUT BECAUSE I KNOW WE HAVE SOME NEWER MEMBERS AND FRANKLY, IT WAS NEWER FOR ME. BUT THINGS THAT HAVE BEEN APPROVED BY BOA ARE THEN PUT INTO IT AS THEY WERE. AND FOR COUNCIL IT BECOMES A PARLIAMENTARY FUNCTION. IF IT THEN MEETS THE STANDARDS THAT ARE IN PLACE, WHICH THIS DOES. YES, SIR. OBVIOUSLY I KNOW I'VE MENTIONED TO YOU, BUT JUST WANTED TO PUT IT ON THE RECORD. I KNOW THERE ARE SEVERAL UTILITY EASEMENTS THROUGH HERE, SO JUST MAKE SURE I KNOW YOU GUYS DO A GREAT JOB OF IT. BUT AS ALWAYS, MAKE SURE THAT WHENEVER THE CONSTRUCTION DESIGNS OF THE STRUCTURES COME THROUGH, THAT WE'RE CAREFUL WITH THOSE. YES, SIR. EVERY LOT IS STILL A BUILDABLE LOT BASED ON THE 2400 SQUARE FOOT MINIMUM REQUIREMENT THAT THAT COULD BE STILL PUT ON EVERY ONE OF THESE LOTS, EVEN WITH EASEMENTS THAT ARE IN PLACE. PERFECT, WHICH IS GREAT TO HEAR. YES, SIR. SO WITH THAT, I DON'T HAVE ANY OTHER QUESTIONS. I JUST IT WAS A LITTLE BIT DIFFERENT OF AN ITEM WITH SOME OF THOSE CHANGES. AND I APPRECIATE STAFF WORKING WITH ME ON SOME OF THE QUESTIONS I HAD. BUT I DIDN'T WANT TO JUST NOT PUT ANYTHING OUT THERE SINCE WE'D HAD THAT DISCUSSION. SO WITH THAT, I'D BE OPEN TO A MOTION ON THE ITEM. COUNCILMAN DUKE. THANK YOU, MR. MAYOR. I MAKE A MOTION THAT WE ACCEPT THE ITEM, HAVE A MOTION TO APPROVE THE ITEM. DO WE HAVE A SECOND, COUNCILMAN HOOVER I SECOND.

MOTION WITH A SECOND TO APPROVE THE ITEM. COUNCIL, PLEASE CAST YOUR VOTE. MOTION CARRIES SIX

[1. Interview applicant for Board of Review alternate vacancy for a term to begin July 22, 2025 and end June 30, 2027.]

ZERO. THANK YOU AGAIN, MR. HASKINS. WITH THAT, WE'LL MOVE TO ITEM NUMBER ONE, WHICH IS TO INTERVIEW AN APPLICANT FOR THE BOARD OF REVIEW. ALTERNATE VACANCY FOR A TERM TO BEGIN JULY 22ND, 2025, ENDING JULY 30TH, 2027, AND I WOULD ASK FOR MR. CHRIS SMITH. OKAY. NOT SEEING MR. SMITH THIS EVENING. DID WE MAKE ANY CONTACT WITH HIM, MISS STORM? YES, SIR. LAST WEEK, I BELIEVE HE CONFIRMED HE COULD ATTEND. OKAY. SO SINCE HE'S NOT IN ATTENDANCE, THE ONLY THING THAT WE COULD POTENTIALLY DO IS REVIEW HIS APPLICATION. OBVIOUSLY, WE HAVE IT IN THE RECORD IF ANYONE WANTS TO LOOK AT THAT. FROM THERE, WHAT I'LL DO IS, RATHER THAN CONTINUING THROUGH THIS ITEM, WHICH HAS NO ACTION TO TAKE, WE'LL GO AHEAD AND MOVE TO ITEM NUMBER TWO,

[2.Consider, and act upon, an appointment to fill a Board of Review alternate vacancy for a term to begin July 22, 2025 and end June 30, 2027]

WHICH WAS TABLED FROM THE JUNE 11TH, 2025 MEETING. IN ORDER TO CONSIDER THE ITEM WE DO HAVE TO REMOVE FROM TABLE. THIS IS NOT A MOTION. BEYOND THAT, DO WE HAVE A MOTION TO REMOVE THE ITEM FROM TABLE? OKAY, I'M NOT SEEING A MOTION TO REMOVE FROM TABLE. MISS STORM, IF WE FAIL TO REMOVE FROM TABLE. HOW DOES THAT WORK? IT HAS TO COME BACK IN THREE MEETINGS AND TODAY IS A THIRD MEETING. SO SOMETHING HAS TO BE CONSIDERED EITHER. RETABLED OR VOTE TAKEN. EITHER WAY. ALL RIGHT. SO I WILL MAKE THE MOTION TO REMOVE FROM TABLE. DO WE HAVE A SECOND COUNCILMAN MALIKI I'LL SECOND. OKAY. WE HAVE A MOTION WITH A SECOND TO REMOVE FROM TABLE. COUNCIL, PLEASE CAST YOUR VOTE. THE ITEM IS REMOVED FROM TABLE SIX ZERO. WITH THAT, THE ITEM IS TO CONSIDER AND ACT UPON AN APPOINTMENT TO FILL A BOARD OF REVIEW. ALTERNATE VACANCY FOR A TERM TO BEGIN JULY 22ND, 2025.

ENDING JULY 30TH, 2027. OBVIOUSLY, THE CANDIDATE WAS ENDED UP UNABLE TO MAKE IT THIS EVENING. WE DO HAVE THE INFORMATION THAT IS LISTED THERE. COUNCIL WE HAVE, ARE WE

[00:15:05]

ABLE TO TABLE IT AGAIN? I'LL LISTEN TO COUNCILMAN MALIKI. MAYOR, I THINK WE SHOULD JUST TABLE IT UNTIL WE SEE THE CANDIDATE COMMITTED TO COME TO AN INTERVIEW. SO IF NOBODY HAS ANYTHING, I'LL MAKE A MOTION TO TABLE THIS ITEM FOR NEXT THREE MEETINGS. WOULD YOU BE WILLING TO SET YOUR MOTION ASIDE FOR A SECOND FOR ME TO ASK A QUESTION OF MISS STORM FOR PARLIAMENTARY FUNCTION? MISS STORM, ARE WE ABLE SO WE CAN SET THIS ASIDE TO TABLE? WOULD THE APPLICATION REMAIN OR WOULD WE REOPEN THE APPLICATIONS AT THAT POINT? WELL, WE CLOSE THE APPLICATION LAST MONDAY AND THAT WHOLE THREE WEEKS OR FOUR WEEKS, WE ONLY HAD ONE APPLICATION. SO WE CAN REACH BACK OUT TO HIM AND SEE IF HE CAN COME TO THE NEXT MEETING TO INTERVIEW. WE CAN REOPEN THE APPLICATION. BUT AND WE DID EMAIL EVERYONE THAT WAS NOT PLACED ON A BOARD AND COMMISSION THAT APPLIED FOR BOARD AND COMMISSION AND LET THEM KNOW THAT THIS APPLICATION WAS REOPENED. SO IT WAS EMAILED TO QUITE A FEW PEOPLE. AND, AND THIS PARTICULAR APPLICANT WASN'T EVEN AN APPLICANT THAT APPLIED FOR BOARD AND COMMISSION. OKAY. SO WITH WITH THAT, IF WE WISH IF WE DO WISH TO TABLE IT, WOULD YOU PREFER THAT WE HOW WOULD WE PHRASE THAT IF WE WANT TO LEAVE IT OPEN ENDED FOR WHEN THEY'RE ABLE TO ATTEND? TABLE IT FOR UP TO THREE MEETINGS AT THE DISCRETION OF STAFF OR. YES. OR IF YOU LEAVE IT OPEN ENDED, WE BRING IT BACK IN THREE MEETINGS ANYWAYS. YEAH. IF NOTHING HAS HAPPENED. OKAY. THANK YOU, MISS STORM. COUNCILMAN MALIKI, DID YOU STILL WISH TO TABLE THE ITEM? I'LL TABLE THE ITEM UP TO THREE WEEKS. UP TO THREE MEETINGS. UP TO THREE MEETINGS. WE HAVE A MOTION AS STATED. DO WE HAVE A SECOND COUNCILMAN STRING? I WILL SECOND, WE HAVE A MOTION WITH A SECOND TO TABLE THE ITEM FOR UP TO THREE MEETINGS. COUNSEL, PLEASE CAST YOUR VOTE. MOTION CARRIES SIX ZERO. THAT COMPLETES OUR REGULAR

[WS1. Discuss Water/Sewer Rate Study and Presentation from NewGen Strategies & Solutions, LLC]

AGENDA AND MOVES US INTO OUR WORK SESSIONS. WORK SESSION ONE IS TO DISCUSS OUR WATER SEWER RATE, STUDY AND PRESENTATION FROM NGUYEN STRATEGIES AND SOLUTIONS, LLC. MISS BROWN.

THANK YOU, MAYOR AND COUNCIL. I'M JUST GOING TO GIVE YOU A LITTLE BIT OF AN UPDATE, ESPECIALLY FOR THOSE WHO ARE NEW TO THE COUNCIL TO REMIND YOU HOW THE WATER SEWER STUDY RATES WORK FOR US. NORMALLY, WE WOULD DO THESE EVERY FIVE YEARS. IN THE LAST FULL STUDY THAT WE DID WAS IN 2020, BUT BECAUSE OUR COSTS WERE ESCALATING SO QUICKLY, ESPECIALLY BECAUSE OF THE. MUDDY CREEK WASTEWATER TREATMENT PLANT WITH NORTH TEXAS, WE DID A REVIEW IN JULY OF 2022, WHICH WAS TO REEVALUATE THE RATE INCREASES FOR 23, 24 AND 25. AND SO NOW WE HAVE DONE ANOTHER STUDY REVIEWING OUR CAPITAL PLAN, PERSONNEL AND EQUIPMENT REQUESTS FOR THE NEXT FIVE YEARS. AND NGUYEN IS HERE TONIGHT TO PRESENT THAT STUDY WITH SOME RECOMMENDED INCREASES IN THE RATES FOR THE NEXT FIVE YEARS. OUR GOAL TONIGHT FROM THE FINANCE DEPARTMENT IS TO GET YOU TO CHOOSE BETWEEN THE TWO SCENARIOS THAT ARE PRESENTED SO THAT WE CAN INCORPORATE THOSE INTO THE BUDGET AND ALSO, OF COURSE, TO ANSWER ANY QUESTIONS THAT YOU HAVE THERE RELATIVE TO THE STUDY. SO I WILL GO AHEAD AND TURN IT OVER TO MATTHEW GARRETT, WHO IS THE REPRESENTATIVE FROM NGUYEN STRATEGIES. AND HE WILL GO OVER THE PRESENTATION WITH YOU. AND THEN WE CAN ADDRESS QUESTIONS EITHER WAY. AS YOU KNOW, EITHER WHILE WE'RE GOING THROUGH OR AT THE END OKAY. THANK YOU SO MUCH, MELISSA. GOOD EVENING. MAYOR AND COUNCIL MATTHEW GARRETT WITH NUGENT STRATEGIES AND SOLUTIONS. GLAD TO BE BACK IN FRONT OF YOU THIS EVENING. I CAN GO THROUGH THIS RELATIVELY QUICKLY, AND I DO WISH YOU'D PAUSE ME AS WE'RE ON A SLIDE IF YOU WANT TO TALK ABOUT IT. BUT TO YOUR DRUTHERS, WE CAN COME BACK TO IT IF YOU IF YOU CHOOSE TO HOLD COMMENTS TILL THE END. BUT IF I'M GOING TOO QUICKLY, I'D LOVE A NON-VERBAL SLOWDOWN OR SOMETHING. MAYBE FROM BRANT THERE. SO GENERALLY. RIGHT. SO OUR OUR TEAM WAS TASKED WORKING WITH YOUR BUDGET DEPARTMENT, LOOKING AT NORTH TEXAS MUNICIPAL WATER DISTRICT. THEY ARE GREAT AT PUBLISHING A STRATEGIC FINANCIAL PLAN. ALL GOOD PLANS ADJUST YEAR TO YEAR AND SO DO THEIRS. SO WE LOOKED AT THEIR UPDATED PLAN. WE LOOKED AT THE LETTER RECEIVED, I BELIEVE, 630 BY OUR CITY MANAGER FOR SPECIFIC 2026 EXPENSES. OVERALL, IN THIS FIVE YEAR HORIZON, COSTS ARE SET TO

[00:20:05]

INCREASE APPROXIMATELY 7.4% PER YEAR, JUST YEAR OVER YEAR, RIGHT? IF YOU TAKE THE AVERAGE ANNUAL CHANGE OVER THE FIVE YEAR SPAN. SO I'VE ALREADY TOUCHED ON THE WHOLESALE COST. WE KNOW THOSE ARE GOING TO GO UP OVER TIME FOR WATER AND WASTEWATER, SOMETHING TO CHECK OR A HARD TIME HEARING. OH REALLY? I'M SORRY. I WILL SPEAK UP OR CLOSER. FORGIVE ME, I THOUGHT I WAS YELLING ALREADY, SO I APOLOGIZE. NO, NO WORRIES AT ALL. SO I'LL ENUNCIATE AND SLOW DOWN. I CAN DO THAT AS WELL. MAYBE WORDS ARE RUNNING TOGETHER. OKAY, I DIDN'T KNOW IF IT WAS VOLUME OR CLARITY. THAT SAID, NORTH TEXAS DOES PROVIDE OUR WHOLESALE WATER. THEY BRING IT TO US, TREATED. THEY TREAT OUR WASTEWATER GOING OUT. THERE ARE SUBSTANTIAL INCREASES AT MUDDY CREEK RELATIVE TO SOME PLANT EXPANSIONS. THOSE COSTS ARE COMING TO YOU OVER THIS FIVE YEAR HORIZON. SO WE BAKED THAT IN. THE REASON WE LOOK OUT FIVE YEARS IS BECAUSE IN THE UTILITY, WE THINK WE SHOULD LOOK AT RATES WITH A LONGER TERM VISION. SO WE'D LIKE TO EMPLOY SOME RATE.

GRADUALISM IS WHAT WE CALL IT, SO THAT WE'RE NOT HAVING THE STICKER SHOCK OF A 20% INCREASE WHEN WE NEED IT LATER. RIGHT. AND SO THAT'S WHY YOU SEE A PLAN TO INCREASE ANNUALLY, AS OPPOSED TO WAITING UNTIL WE HAVE TO IN THE FUTURE. OTHERWISE YOU DO HAVE SOME CAPITAL PROJECTS.

WE'LL TALK ABOUT THAT A BIT. GENERAL INFLATION HITS ALL OF US. IT HITS YOUR LINES IN A COUPLE OF DIFFERENT WAYS. WE'VE TRIED TO MAKE ADJUSTMENTS FOR ENERGY OR OR CHEMICALS OR OTHER SMALL ITEMS THAT REALLY AREN'T MAYBE IMPORTANT FOR THIS MEETING. BUT UNDER THE HOOD, WE'VE DONE SOME DEEP WORK TO TRY TO FORECAST YOUR BUDGET AS BEST AS WE CAN WITH YOUR STAFF'S FEEDBACK. LASTLY, THE REVENUE ADJUSTMENTS THAT WE'RE PUTTING IN THIS YEAR, ONE ADJUSTMENT IS TO SET THE CITY ACCOUNT. SO THESE ARE WATER ACCOUNTS PAID FOR BY THE CITY FOR THIS FACILITY, PARKS ETC. AT A COST BASIS. SO IT WOULD BE A PASS THROUGH OF WHAT IS BEING PAID FOR THE VOLUMES EQUAL TO THE RATE BEING CHARGED BY NORTH TEXAS MUNICIPAL WATER DISTRICT.

SO THAT'S THE FIRST ADJUSTMENT MADE. THE SECOND IS WE PROVIDED THE RATE ALTERNATIVES, AS MELISSA REFERENCED, THAT WE'D LIKE YOUR OPINION ON. AND THAT DISCUSSION CENTERS AROUND DO WE DO EVEN INCREASES BETWEEN OUR WATER AND WASTEWATER RATES, OR DO WE LOAD A LITTLE MORE HEAVILY THE RATES ON THE WASTEWATER SIDE, BECAUSE IT MIRRORS THE COSTS THAT WE'RE RECEIVING. SO WE HAVE MORE COST INCREASING ON WASTEWATER. SHOULD WE INCREASE THAT RATE A LITTLE MORE? SO THOSE ARE THE QUESTIONS WE'LL GET THROUGH THE REST OF THE PRESENTATION AND THEN TAKE YOUR COMMENTS. SO HERE'S THAT FIVE YEAR PERSPECTIVE. YOU SEE WE HAVE A PRETTY BIG JUMP. WE HAVE A NUMBER OF CASH CAPITAL OUTLAYS. THOSE ARE THE YELLOW LINES. BUT THE BULK OF YOUR COST 56 TO 61% ARE WHOLESALE RELATED COSTS. AFTER THAT YOU HAVE YOUR O&M. THAT'S THAT DARK BLUE BASE LAYER. IT KIND OF BOPS AROUND BECAUSE IT HAS A LITTLE BIT OF CAPITAL IN IT. THAT'S NOT MAJOR CAPITAL, BUT GENERALLY IT'S A YEAR OVER YEAR, 3% CHANGE. SO PRETTY SMALL INCREASE TO YOUR OWN OPERATING EXPENSES. YOUR WHOLESALE COSTS HOWEVER, ARE RISING AT A MUCH QUICKER PACE.

AND TO BE CLEAR, I KNOW YOU'VE KIND OF STATED IT ALREADY, BUT THE WHOLESALE COSTS ARE THE ONES THAT ARE PAST, THAT ARE WHAT WE ARE CHARGED BY. THE NORTH TEXAS MUNICIPAL WATER DISTRICT. YES.

JUST SO THAT IT'S CLEAR IF WE HAVE ANY CITIZENS WHO ARE HERE OR WHO ARE TUNED IN ONLINE, THEY UNDERSTAND THAT THOSE COSTS ARE NOT IN OUR CONTROL, SO TO SPEAK. ABSOLUTELY. THOSE ARE SET BY THE WATER DISTRICT. THAT'S CORRECT. YES, SIR. SO YOU'LL SEE, I MEAN, JUST LOOKING AT THE LIGHTER BLUE AND THE, THE LIGHT GREEN BAR, IF YOU LOOK AT THOSE, THAT'S AGAIN 56 TO 61%. SO YOU'RE ALREADY AT 60% OF YOUR BUDGET. ALL UTILITIES ARE HIGHLY FIXED COST INTENSIVE. ALL RIGHT. THE INFRASTRUCTURE YOU'RE ON TOWERS. OTHER ITEMS THAT AREN'T IN THOSE TWO BARS ARE GOING TO BE REFLECTED IN THE TOP THREE LAYERS. RIGHT. THOSE ARE YOUR CAPITAL EXPENDITURES. YOUR OWN INCLUDES PERSONNEL STILL RELATIVELY FIXED. SO ALL IN YOU'RE ABOUT 80% FIXED.

REGARDLESS. RATES DON'T WORK THAT WAY BECAUSE WE LIKE TO CHARGE OUR VOLUMETRIC RATES FOR WASTEWATER OR I MEAN FOR WATER. BUT BY AND LARGE THIS IS A FIXED COST UTILITY. AND YOU'RE RIGHT, MAYOR, 60% OF THAT WE DON'T HAVE CONTROL OVER. SO HERE'S THE CASH CAPITAL PLAN. THERE'S A LITTLE BIT OF CASH. YOU SEE $9 MILLION TO THE LEFT. SO WE KIND OF ITEMIZE WHAT WE'RE SPENDING, HOW WE'RE SPENDING IT. THE FIRST 1.1 MILLION HERE IN 2026, YOU SEE IS ALL WASTEWATER. THAT'S IMPACT FEE RELATED. AND THEN WE DO HAVE A $24.6 MILLION ASSUMPTION OF DEBT THAT WOULD BE ISSUED BY THE CITY TO FUND YOUR INFRASTRUCTURE NEEDS. THAT INCLUDES 20 YEAR DEBT STARTS AROUND 4%, GOES UP ABOUT 15 BASIS POINTS PER YEAR, LEVELS OFF I THINK AT FOUR AND A HALF. BUT AGAIN, MY CRYSTAL BALL IS AS BAD AS ANYONE'S. BUT THAT'S OUR ASSUMPTION IF YOU'RE INTERESTED. OKAY, SO WE HAVE OUR

[00:25:02]

OWN CAPITAL ON TOP OF THE CAPITAL AT THE DISTRICT. SO HERE IS THE DASHBOARD. THIS IS THE BURNING PLATFORM I CALL IT IN MOST MEETINGS. THIS IS WHY WE CAN'T STAY HERE. IF WE DO NOTHING WITH OUR RATES, WE'RE ANTICIPATED TO BE BELOW OUR DEBT SERVICE COVERAGE AND BE SOUTH OF OUR 90 DAYS CASH ON HAND IN THIS FIVE YEAR HORIZON. REAL QUICKLY ON THE DASHBOARD JUST TO SHARE RIGHT. EXPENSES ARE IN YELLOW, REVENUES ARE IN BLUE. YOU'D LIKE THAT NOT TO ALWAYS BE THE INVERSE, RIGHT? YOU'D RATHER SEE REVENUES EVENTUALLY CATCH UP OR NEAR YOUR EXPENSES. YOU DO HAVE SOME BALANCES. WE MAY SHOW AN EXPENSE OR A USE OF THAT BALANCE OVER TIME, BUT WE CAN'T AFFORD TO DO IT AT THIS CLIP. OKAY, NO QUESTIONS ON THE METRICS, RIGHT? THESE ARE MY GUIDING METRICS OKAY. FAIR ENOUGH. AND SO PROJECTED RATE CHANGES. SO IF WE DO A RATE CHANGE ACROSS THE BOARD AND WE INCREASE 5.15% ON OUR WATER AND SEWER CHARGES, THAT EFFECTIVELY TURNS THE CHECK ENGINE LIGHT OFF ON OUR DASHBOARD, THAT MEETS OUR GOAL, RIGHT? THIS IS WHAT THAT BILL WOULD LOOK LIKE. THIS MAY BE WHAT YOU CARE MORE ABOUT THAN THE DASHBOARD. THE CURRENT BILL FOR TYPICAL RESIDENT USING 7000 GALLONS IS $125 PLUS OR MINUS, GOING UP TO 131. SO $6.42 CHANGE YEAR OVER YEAR FROM 25 TO 26. COUNCILMAN STRONG, THANK YOU. MAYOR. QUICK QUESTION. WHAT'S WHAT IS DEFINED AS A TYPICAL RESIDENTIAL CUSTOMER? IS THAT TYPICAL RESIDENTIAL. WE USE 7000 HERE. YOUR ACTUAL AVERAGE VARIES DEPENDING ON THE YEAR. WE HAVE ABOUT FIVE YEARS OF DATA. BUT WHEN WE LOOKED AT A SAMPLE PERIOD WE SAW IT AROUND 7400 GALLONS. AND THAT'S GOING TO TAKE THE EXTREMES OF THE WINTER LESS USE TO THE AUGUST HEAVY USE. AND THEN AN AVERAGE OF COURSE, IS SKEWING UP. SORRY. WHAT I MEANT IS LIKE, ARE WE TALKING LIKE THIS IS A QUARTER ACRE PROPERTY, LIKE A FOUR PERSON FAMILY HOME? IS THIS, YOU KNOW, WELL, THAT'S HIGHLY DEPENDENT ON THE INDOOR USE AND THE OUTDOOR USE. SO THIS IS A COMPOSITE OF ALL OF YOUR RESIDENTS OR I CAN'T SAY, YOU KNOW, I HAVE TWO DAUGHTERS AND A WIFE AND OKAY. NO. SO I DON'T KNOW HOW MUCH YOU AREN'T ABLE TO DETERMINE THEN THAT'S THE ANSWER. INDOOR. YEAH. SO THERE IS A GALLONS PER CAPITA PER DAY ASSUMPTION. I DON'T KNOW THAT NUMBER FOR WILEY, BUT WE CAN KIND OF BACK INTO SOME OF THOSE. AND WHAT THAT WOULD BE FOR A TYPICAL HOME, I'D SAY 7000 AROUND THE STATE IS A VERY GENERAL AND MAYBE A LITTLE BIT NORTH OF GENERAL. IT'S USUALLY BETWEEN 4 AND 8000 ON THE HIGH SIDE. IF I GO INTO A PROSPER OR SAGINAW OR ANOTHER COMMUNITY, IT MAY BE A HIGHER VALUE, RIGHT? IT COULD BE. OR NO, SORRY, KELLER, IT MAY BE 13,000 ON AVERAGE, JUST BASED ON THEIR LOT SIZES AND THEIR TYPICAL WATERING PATTERNS. BUT HERE YOU'RE AROUND THAT 7400 MARK. OKAY. FAIR ENOUGH. ALL RIGHT. SO AGAIN THE BILL IMPACT. AND I THINK AS MELISSA. YES SIR. ARE THE BILLABLES FROM NORTH TEXAS WATER DISTRICT. AND THE WASTEWATER ARE THEY DO WE KNOW THE NEXT FIVE YEARS IN TERMS OF THE INCREASES THAT THEY'RE PROVIDING US? HAVE WE GOTTEN THOSE OR DO WE GET THOSE YEARLY. SO WE ACTUALLY GET THOSE ANNUALLY. THEY PROVIDE A LETTER EVERY YEAR, JUNE 30TH, TYPICALLY TO YOUR CITY MANAGER OR CITY LEADERSHIP. AND THAT WILL STATE THE RATES FOR THIS COMING YEAR. HOW HOW HAS THE RATES BEEN IN PAST FIVE YEARS IN TERMS OF INCREASES IN PERCENTAGE WISE? I DON'T HAVE THAT TO SHOW YOU TODAY. IT'S CHANGED QUITE A BIT. AS A MEMBER CITY, YOU MAY BE AWARE YOU'VE HAD A CHANGE TO THE CONTRACT. AND SO YOUR ACTUAL RATE AND WHAT USED TO BE A TAKE OR PAY, WE USED TO ACTUALLY HAVE A SLIDE AT YOUR MEETING ABOUT CUTTING OUR CAP SO WE DON'T EXCEED AND MOVE OUR TAKE OR PAY UP. THAT WAS PROBABLY FIVE YEARS AGO. BUT THAT SAID, WE CAN BRING THAT BACK TO YOU OR I CAN SEND IT THROUGH STAFF. WHAT WAS LAST YEAR'S RATE INCREASE FROM NORTH TEXAS WATER DISTRICT TO US? I DON'T HAVE THAT HOT AND READY FOR YOU. I APOLOGIZE SIR. OKAY. YEAH. ALL RIGHT. SURE. AND THEN TO KIND OF CLOSE THE LETTER GIVES ONE YEAR SNAPSHOT. THE FIVE YEAR IS PREDICATED ON THE STRATEGIC FINANCIAL PLANS THAT THE DISTRICT PUBLISHES EVERY YEAR AS THEY UPDATE IT. AND SO THEY TRY TO LOOK OUT TEN YEARS.

WE'VE RELIED ON THAT BECAUSE THAT'S THE CLOSEST TO GOSPEL WE HAVE. IT WILL CHANGE. THEY'RE GOING TO CHANGE THEIR CAPITAL, THEY'RE GOING TO CHANGE PERSONNEL, BUT IT'S THEIR BEST FORECAST. SO THAT'S WHAT'S BAKED IN TO THE WHOLESALE COST. ALL RIGHT. SO AGAIN AS I PROMISED I COME BACK TO THE DASHBOARD. THE RATE PLAN WORKS. OUR REVENUES AND EXPENSES PAN OUT SUCH THAT OUR DEBT SERVICE COVERAGE RATIO IS MET AND OUR DAYS CASH ON HAND IS OVER OUR 90 DAY TARGET. SO THIS IS MY PROOF OF RATES. AND THIS IS WHAT I LOOK AT AS I'M ADJUSTING AND VISITING WITH YOUR STAFF. SO THE FIVE AND 5.15% CHANGE LOOKS LIKE THIS. WAS STATED. OUR WASTEWATER CHARGES ARE GOING UP A LITTLE HIGHER. OUR OWN CAPITAL NEEDS ARE GENERALLY HIGHER ON WASTEWATER.

[00:30:02]

CERTAINLY THE MUDDY CREEK PLANT IS GOING TO BE A BIG LIFT. SO THOSE COST OVER THE NEXT FIVE YEARS WILL BE MORE THAN WATER. SO IF YOU CHOSE TO BALANCE THE RATE INCREASES WITH WHERE MOST OF THE COST INCREASES ARE COMING, YOU COULD FOLLOW THIS PLAN, WHICH IS 3.5% INCREASE ON WATER AND SIX AND A HALF ON WASTEWATER. AGAIN, IT'S VERY STEADY. WE DO RECOMMEND YOU LOOK AT THIS YEAR AND SET A RATE FOR 26. I DO NOT RECOMMEND A BLIND ASSUMPTION TO FOLLOW THIS FOR FIVE YEARS, BUT THAT'S WHAT OUR CRYSTAL BALL SAYS TODAY. SO I BELIEVE THE RATE ACTION THAT STAFF IS LOOKING FOR IS A 26 DECISION, NOT NECESSARILY ADOPTING A FIVE YEAR PLAN. WE'RE JUST SHOWING YOU FIVE YEARS SO THAT YOU HAVE A FORECAST YOU COULD CHOOSE TO. BUT AS I SAY, COST MAY CHANGE AND IT WARRANTS A REVIEW YEAR TO YEAR. WITH THAT. AGAIN, THIS IS THE OUTCOME. CURRENT BILL HASN'T CHANGED. 7000 GALLON CUSTOMER. AS A RESIDENT 124 67. THAT WOULD GO UP TO 187. THAT'S AN INCREASE OF 620 IN 2026. YOU'LL SEE IT'S A LITTLE BIT LARGER ON THE WASTEWATER SIDE, A BIT REDUNDANT NOW. BUT AGAIN THIS RATE PLAN WORKS. IT PURPOSELY HAS LEFT YOUR DAYS CASH ON HAND, VERY CLOSE TO THE OTHER PLAN SO THAT YOU'RE NOT CHOOSING BETWEEN TWO OPTIONS WITH VERY DIFFERENT OUTCOMES. AND YOUR DEBT SERVICE COVERAGE IS MAINTAINED. LASTLY, AND I HAVE TO SAY THAT THEIR RATES AREN'T YOUR RATES AND THEIR SYSTEM ISN'T YOUR SYSTEM.

EVERY TIME I PRESENT THIS. BUT THIS IS A COMPARISON OF YOUR RATES. WILEY TODAY HERE IN THAT MAYBE ABOUT MIDPOINT MOVING UP TO THAT TOP QUARTILE, EACH OF THESE CITIES IS EVALUATING RATES EVERY YEAR WITH BUDGET, AND THEY MAY ADOPT RATES IN OCTOBER THAT ARE HIGHER THAN WHAT I'M SHOWING YOU TODAY. SO YOUR COMPARISON OF SCENARIO ONE AND TWO ARE 26 RATES FOR WILEY COMPARED TO CURRENT RATES FOR EVERYONE ELSE. SO I DON'T KNOW WHERE YOU'LL TRULY LAND IN A COMPARATIVE STANDING WHEN ALL THE DUST SETTLES. BUT THERE'S NOT MUCH ROOM. IT'S SEVEN $7 A DIFFERENCE. AND SO I IMAGINE THERE WILL BE SOME INCREASES THAT WILL CHANGE THOSE ABOVE YOU. I DON'T KNOW ABOUT THOSE BELOW YOU. I WOULDN'T IMAGINE ANYBODY'S COMING DOWN FROM THAT LIST. WELL, IF I LOOK AT THE ASTERISKS THAT ARE MARKED BY MANY OF THE CITIES, THEY'RE USING THEIR WINTER AVERAGE AT STATES. THAT'S CORRECT. SO THAT MEANS THAT THE HIGHEST USE TIMES OF THE YEAR DURING SUMMER ARE EXCLUDED WHEN THEY CONDUCT THEIR AVERAGE. SO GENERALLY IT'S A THREE MONTH PERIOD, DECEMBER THROUGH FEBRUARY, WHEREAS WE'RE USING YEAR ROUND. CORRECT.

YOU'RE USING A FLAT RATE, SO YOU'RE NOT ACTUALLY CHARGING MORE FOR WASTEWATER DURING THOSE HIGH USE PERIODS. YOU JUST HAVE A FLAT RATE YEAR ROUND. BUT I'M SAYING NECESSARILY THE WILEY RATE WITH SOME OF THE CITIES WHO ARE USING A THREE MONTH PERIOD DURING THE WINTER ISN'T NECESSARILY APPLES TO APPLES. IT WOULD ARTIFICIALLY LOWER WHAT THEY'RE PAYING OR WHAT IT SHOWS THEY'RE PAYING. IT COULD BE, DEPENDING ON THE VOLUMES WE'VE ASSUMED. AND THEN THE SUBJECT, I THINK IS COUNCIL MEMBER STRANG POINTED OUT. IT DEPENDS ON THE USAGE. RIGHT. AND THAT PARTICULAR BILL PAYER OVER THE WINTER. BUT YOU'RE RIGHT, YOU COULD HAVE TYPICALLY DURING THE WINTER, FOR INSTANCE, MY SPRINKLERS ARE GOING TO BE TURNED OFF. CORRECT. WHEREAS IF YOU'RE IF YOU'RE TAKING THE WINTER TIME FOR MURPHY AND MCKINNEY, THEY'RE PROBABLY GOT THEIR SPRINKLERS OFF AS WELL, WHICH IS GOING TO LOWER THE WATER PORTION, WHICH IF YOU LOOK, THE WATER PORTION IS WHERE THE VAST MAJORITY OF THE CITIES WITH THE ASTERISK TEND TO COME IN BELOW US. IT'S NOT THE SEWER SIDE, IT'S THE WATER SIDE. AND SO I'M JUST SAYING IT'S NOT EXACTLY APPLES TO ORANGES IF YOU'RE NOT COUNTING SOME OF THE HIGHEST OR IT'S NOT APPLES TO APPLES, IF YOU'RE USING THE HIGHEST PERIODS AND EXCLUDING THOSE FROM WHAT YOU'RE PUTTING YOUR AVERAGE AT. SURE, WE COULD CERTAINLY. AND I'M NOT SAYING YOU ALL. I'M SAYING WHAT THE CITIES ARE REPORTING, THEY'RE REPORTING SOMETHING THAT MAKES THEM, IN MY OPINION. AND YOU DON'T HAVE TO ANSWER ARTIFICIALLY LOOK BETTER THAN THEY ARE, BECAUSE IT'S NOT A TRUE REPRESENTATION OF A YEARLY AVERAGE, BECAUSE THEY'RE THEY'RE CHOOSING A PERIOD WHERE PEOPLE USE LESS WATER. SURE. I MEAN, MY WATER BILL GETS CUT IN HALF TYPICALLY THAT TIME OF YEAR ONCE I SHUT THE SPRINKLERS OFF. SO YEAH, THOSE PEAK PERIODS AFFECT, I KNOW AS A MCKINNEY RESIDENT AFFECTS ALL OF US. BUT WHEN IT HITS, YEAH, OUR TEAM ACTUALLY PRODUCED THIS SCENARIO. AND SO WE DID USE THE PUBLICLY AVAILABLE RECORDS. WE PRODUCED THAT WHAT IF BILL FOR 7000 GALLONS OF WATER AND WASTEWATER. AND YOU'RE CORRECT. IF I HAD A WINTER AVERAGE LOWER THAN THAT.

MY BILL MAY VARY IN MCKINNEY. BUT THAT'S WE'RE SHOWING YOU LIKE, LIKE FOR THE SAME VOLUMES.

BUT AS INDICATED EARLIER, USAGE AT EACH CITY OR EACH HOME CAN VARY. SO WE CAN ALSO PROVIDE SOME ADDITIONAL EXAMPLES IF THAT WOULD HELP COUNCIL THROUGH STAFF IF YOU'D LIKE. AND YOU CAN SEND THOSE AT. I THINK YOUR OTHER POINT WAS ALSO IMPORTANT. AND THAT IS THE WATER DISTRICT RATE CHANGES ARE GOING TO IMPACT. I BELIEVE EVERY CITY THAT'S LISTED HERE IS EITHER A MEMBER CITY OR

[00:35:03]

A PURCHASING CITY. AND SO THEY'RE ALL GOING TO EXPERIENCE THOSE SAME INCREASES. SO I'M SURE THEY'RE PROBABLY HAVING THE SAME CONVERSATIONS. YES SIR. SO. OKAY I JUST WANTED TO POINT OUT THERE'S A LITTLE LITTLE NUANCES THERE BECAUSE ABSOLUTELY THAT'S A VALID POINT. I'M JUST GLAD WE'RE NOT COMPARING TO AUSTIN. I HAVE AN EXOTIC RATE SCHEDULE. SO WITH THAT COUNCIL, I'M HAPPY TO ANSWER ANY QUESTIONS YOU HAVE ABOUT THE ANALYSIS ABOUT THE RESULT. I DO BELIEVE FOR DISCUSSION ONLY TODAY I THINK STAFF IS LOOKING FOR SOME DISCUSSION AND MAYBE DIRECTION AS TO WHICH OPTION TO CHOOSE. CERTAINLY FOR THE 26 RATE, THE TWO OPTIONS BEING FLAT EQUAL FOR WATER AND WASTEWATER, OR A LITTLE MORE WEIGHTED TOWARDS WASTEWATER. AND I CAN GO BACK TO THIS SLIDE IF THAT'S HELPFUL FOR THAT DISCUSSION AND YOUR CONSIDERATION. BUT THANK YOU, SIR. THANK YOU VERY MUCH. COUNCILMAN MALIKI. MALIKI, DID YOU HAVE A QUESTION OR. YES, MA'AM. GO AHEAD. SO I'M TRYING TO UNDERSTAND AND CORRECT ME IF I'M WRONG HERE, BUT TRYING TO UNDERSTAND IF I'M LOOKING AT BILL COMPARISON AND I'M LOOKING AT BOTH SCENARIOS SO I CAN UNDERSTAND THE WASTEWATER INVESTMENT ON THE MUDDY CREEK, THE WHOLE PART OF IT. BUT EVEN IF WE GO TO THIS INCREASE, WE'RE AT 65%, GIVE OR TAKE, OR $64, $65 OF THE BILL BEING WASTEWATER. AND I'M LOOKING AT SOME OF THE MEMBER CITIES THAT ARE AT THE NORTH TEXAS WATER THAT GET THE WATER FROM THEM. THEIR RATES ARE ALL VERY OBVIOUSLY, BUT OURS WOULD BE THE HIGHEST ONE. SO CAN I UNDERSTAND THAT FACTOR? WHY IS OUR RATE HIGHER THAN ALL OF IT? I UNDERSTAND THAT THE RATES OBVIOUSLY HAVE A LOT TO DO WITH IT, BUT EVEN JUST LOOKING AT IT, OUR WILL GO TO $70 COMPARED TO THE OTHERS AT 5652. SOME OF THE BIGGER CITIES, BIGGER CITIES THAN THAN US. SO AM I WRONG? AM I? AM I MISSING SOMETHING? WHAT'S CAUSING THE VARIATION ON THE WATER SIDE OF THE SCALE? YEAH, SO I CAN'T TELL YOU FOR EACH CITY, BUT I MEAN, WITH MORE TIME, WE COULD ACTUALLY PULL UP THE SCHEDULES AND I COULD SHOW YOU THE SCIENCES REVENUES AND EXPENDITURES, DEBT SERVICE AND WORKING CAPITAL. THAT'S ARITHMETIC. THE ART IS HOW YOU GET IT FROM DIFFERENT RATEPAYERS. THIS IS NO DIFFERENT THAN PRICING IN YOUR BUSINESS.

IF YOU HAVE A BUSINESS, YOU CAN CHOOSE TO PRICE DIFFERENTLY. SO THE CITY OF MCKINNEY MAY DO SOME PRICING. THAT IS, I DON'T AGAIN, I LIVE THERE. I DON'T ACTUALLY KNOW MY WATER BILL BECAUSE I DON'T WORK FOR THEM CURRENTLY. SORRY, BUT AT 5265 THEY COULD HAVE VERY ADVANTAGEOUS RATES SOUTH OF 10,000 GALLONS AND THEY COULD HAVE PUNITIVE OR VERY HIGH STEP VALUES FOR EVERYTHING OVER TEN. I DON'T KNOW THIS. I'M NOT SAYING THAT'S TRUE OF MCKINNEY, BUT YOU HAVE THAT MANY CITIES AND YOU HAVE NO LESS THAN FOUR PROBABLY RATE TIERS FOR EACH ONE. SO THE WAY THEY SET THEIR RATES IS REALLY SUBJECTIVE. I CAN'T SAY ONE OF THESE HAS A TON MORE COMMERCIAL. GARLAND HAS A NICE COMMERCIAL BASE WITH INDUSTRIAL, BUT THEIR WATER IS HIGHER HERE, SO I CAN'T ATTRIBUTE IT TO ONE THING. I CAN TELL YOU THAT THE RATE SETTING IS A DECISION POINT. THE SECOND I CAN SAY, IF WE'RE TALKING ABOUT OUR WASTEWATER HERE IN WYLIE BEING A LITTLE MORE EXPENSIVE, AND WE'VE HAD GENERALLY SIMILAR INCREASES THAT WE MAY, AND IT'S NOT UNCOMMON FOR A CITY TO CHOOSE ONE SIDE OR THE OTHER, HAVE SOME SUBSIDY BETWEEN OUR WATER AND THE WASTEWATER COST. SO THE WATER REVENUES MAY BE HELPING ABSORB MORE OF THE TOTAL UTILITY COST, INCLUSIVE OF WASTEWATER. SO I'M NOT SAYING THAT'S A CONDITION OR A PROBLEM IN WYLIE, BUT THERE ARE A NUMBER OF FACTORS THAT COULD LEAD TO THE IMBALANCE THAT YOU'RE REFERRING TO, SIR. OKAY.

THANK YOU. SURE. COUNCILMAN STRANG THANK YOU. MAYOR. SO. YOU KNOW, IT REALLY STRIKES ME THE DIFFERENCES BETWEEN THE WATER AND WASTEWATER. AND I UNDERSTAND THOSE ARE DIFFERENT. BUT AT THE SAME TIME, I TOLD THEM BECAUSE THIS IS WHAT THE BOTTOM LINE, IT'S WHAT WE ALL DO. IT'S WHAT THE BOTTOM LINE. THE BOTTOM LINE OF YOUR BILL. YES. THE QUESTION I KIND OF HAVE, BECAUSE THERE'S SUCH A WIDE DEGREE OF VARIANCE. I MEAN, LOOK AT FRISCO, IT'S LIKE 75% OF THE TOTAL WATER BILL'S WASTEWATER. SO CAN DO YOU HAVE ANY INSIGHT INTO DOES IT SEEMS ALMOST LIKE IT COSTS MORE MONEY TO TREAT A GALLON OF WASTEWATER THAN IT DOES TO ACTUALLY BRING CLEAN WASTEWATER? IS THAT IN FACT? SO THAT IS IN FACT, SO THAT'S I DIDN'T DO IT HERE, BUT I ALWAYS HAVE THIS VISUAL. I BRING UP A GALLON OF LAKE WATER AND A GALLON OF THAT OTHER WATER. AND I ASK YOU, WHICH DO YOU THINK MAY COST MORE? THANKS FOR NOT DOING THAT. YES, SIR. I MEAN, I APPRECIATE THIS. SHE TALKED ME OFF THE LEDGE. I WANTED TO, BUT SHE SAID, NO, THAT'S DISGUSTING.

[00:40:01]

I'VE SEEN DIRTY JOBS. TRUST ME. YEAH. FAIR ENOUGH. THANK YOU. SO TRUTH IS, THE RESERVOIR COST $1.7 BILLION. PROBABLY MORE. WHEN YOU ADD UP ALL THE MISCELLANEOUS. THAT WATER IS VERY EXPENSIVE, BUT ONCE THAT SOURCE IS APPLIED, IT'S SET FROM THE DISTRICT THAT'S GOING TO CARRY US FOR A LONG TIME. WASTEWATER HAS PFAS REQUIREMENTS. WE HAVE NEW TECHNOLOGIES THAT ARE REQUIRED. WE HAVE TO TREAT MORE OF IT. AND FRANKLY, IT'S NOT PRESSURIZED.

SO WE WANT TO OPTIMIZE WHERE EACH PLANT IS. WASTEWATER IS JUST EXPENSIVE. AND THAT IS TRUE FOR THE TRA SYSTEM I JUST PRESENTED IN RED OAK LAST WEEK. SAME PROBLEM. THEIR WASTEWATER IS MORE EXPENSIVE THAN WATER, RIGHT? THEY TAKE DALLAS WATER IS SUBSTANTIALLY MORE, BUT IT'S ACCURATE PICTURE. AND IT COULD BE THAT SOME OF THESE OTHER COMMUNITIES ARE ADJUSTING THEIR RATES. AND IT COULD BE, AS THE MAYOR POINTED OUT, WE'RE SHOWING 7000 GALLONS FOR OUR RESIDENT, WHICH MAY OR MAY NOT BE THEIR AVERAGE ON THEIR NORMAL BILL. SO OKAY. YEAH, THAT MAKES SENSE. I THINK IT'S WE DON'T NECESSARILY KNOW THE WATER GOES DOWN THE DRAIN. YOU KIND OF FORGET ABOUT IT. YEAH. BUT IT DOES MAKE SOME SENSE, THOUGH, THAT THE INFRASTRUCTURE AND THE WORK NECESSARY TO CLEAN WHAT WE PUT DOWN THE DRAIN IS PRETTY NASTY. THAT MAKES MORE SENSE. SO YEAH, I APPRECIATE THAT. THANK YOU. THAT APPEARS TO COUNCILMAN PICKENS. THANK YOU. MAYOR QUICK BRIEF ON THE CAPITAL IMPROVEMENT PROJECTS PROJECTED FOR 27 THROUGH 30. YOUR OWN CAPITAL PROJECTS, CORRECT? YES, SIR. SO I DON'T KNOW IF PUBLIC WORKS IS HERE TO SPEAK TO IT BETTER THAN ME, BUT I HAVE A LIST, SO I CAN'T TELL YOU WHAT WE'RE DOING. EXACTLY. BUT I CAN TELL YOU WHAT I BAKED INTO THE CAKE. SO THE BULK OF THIS COST IS AT RUSH CREEK, SO WE HAVE A TRUNK SEWER REPLACEMENT LIFT STATION EXPANSION THAT'S GOING TO TOTAL UP TO PLUS OR -12 MILLION OF YOUR WASTEWATER COST. THE RUSH CREEK SYSTEM, ADDITIONALLY, ON THE WATER SIDE, HIGHLIGHTS MAY BE THE PIRATE DRIVE AND DOGWOOD HILLTOP AND BRIARWOOD, BOTH AROUND 1,000,000 IN 2027. AND THOSE ARE WHAT ARE WE PUTTING IN? I'M SORRY. OH I'M SORRY. THESE ARE WATER LINE REPLACEMENTS. THE TOP THREE HILLTOP, BRIARWOOD AND DRIVE PIRATE DRIVE. THOSE ARE WATER.

OKAY. AND I DON'T KNOW IF THE CIP HAS ALREADY BEEN DISCUSSED AT LENGTH, BUT I'M HAPPY TO PROVIDE THE LIST AS WELL. BUT THOSE ARE THE PROJECTS. THE LAST ONE ROUNDING OUT WATER. I THINK THAT'S I NEED LINES. MY OLD EYES. I THINK IT'S FIRST STREET. THAT'S ABOUT $4 MILLION IN 2030.

OKAY, SO TO ANSWER THAT QUESTION OKAY. THANK YOU. ABSOLUTELY. YOU ALSO HAVE A MASTER PLAN IN THERE. SO THAT'S NOT A SMALL EFFORT THAT'S BAKED IN AROUND 2728. OKAY. ANY OTHER QUESTIONS FROM COUNCIL? I KNOW YOU GUYS ARE LOOKING FOR SOME DIRECTION. YES SIR. AT LEAST ON 26 AND KIND OF THE PATH. SO I LOOK AT BOTH AND OBVIOUSLY THERE'S I'LL SAY A VERY SMALL DIFFERENCE BETWEEN THE TWO. MY CONCERN IF WE PUT A HIGHER LEVEL ON SEWER IS THAT THE SEWER IS FLAT RATE. AND SO IF YOU HAVE SOMEONE, FOR INSTANCE, SENIORS IN OUR COMMUNITY WHO MAY BE TWO PEOPLE IN A HOUSE, ONE PERSON IN A HOUSE, THEY'RE GOING TO GET HIT WITH THE WITH THAT SAME LEVEL OF INCREASES, A HOUSE THAT HAS 5 OR 6 PEOPLE IN IT THAT MAY USE 14,000 GALLONS OF WATER. AND I THINK IF YOU IF YOU BALANCE THE TWO OUT, AS IS PROPOSED IN SCENARIO ONE, THEN IT IT HELPS TO EQUALIZE THAT A LITTLE BIT. BETTER TO WEAR THE RATES THAT YOU'RE SEEING IN INCREASE ON SEWER, COVER THE EXPENSES. BUT AT THE SAME TIME, SOMEONE WHO'S USING MORE WATER AND BY EFFECT DUMPING MORE INTO THE SYSTEM IS ALSO GOING TO SEE. PROPORTIONATE, SO TO SPEAK, INCREASE IN THEIR BILL. I JUST WOULDN'T WANT TO SEE THOSE WHO MAY HAVE FEWER RESIDENTS IN THEIR HOME HAVING TO PAY KIND OF THE A HIGHER LIFT SINCE WE HAVE THAT FLAT RATE SEWER. SO FOR ME I WOULD PICK SCENARIO ONE TO START DOWN THE PATH OF FOR THAT REASON. AND OBVIOUSLY WE DON'T HAVE TO APPROVE FIVE YEARS, BUT FOR 26 I WOULD I WOULD TAKE THAT PATH FOR THAT REASON. SO FELLOW COUNCIL MEMBERS, I'D BE INTERESTED IN GETTING YOUR OPINIONS. COUNCILMAN STRANG YEAH, I WOULD ALSO GO FOR SCENARIO NUMBER ONE. I DON'T LIKE THE IDEA OF HAVING THE WASTEWATER HIGHER. AND ALSO BECAUSE IT'S A FLAT RATE. THANK YOU. COUNCILMAN MALIKI. MALIKI, I THINK I'D GO FOR SCENARIO TWO. AND MY REASON BEING THAT WE NEED TO MAKE SURE THAT WE'RE COMPARING APPLES TO APPLES WITH OTHER CITIES AS WELL, IN TERMS OF WHAT WE'RE OUTLAYING AND WHAT

[00:45:01]

WE'RE SPENDING AND WHAT IS OUR COST WHEN WE'RE LOOKING AT THIS CHART. YOU KNOW, IT LOOKS LIKE OUR WATER IS MORE EXPENSIVE THAN THE CITIES SURROUNDING US, OR THE BILL FOR THAT WATER IS MORE THAN OTHERS. OBVIOUSLY, KNOWING THAT IT'S COMING FROM ONE SOURCE, IT'S NOT A POSSIBILITY.

WE MAY HAVE MADE UP THE DIFFERENCE ON IT. SO I'D LIKE TO BE MORE OF A TRUE COST TYPE OF COMPARISON VERSUS A GENERAL TYPE OF INCLUDING IN THE COST THAT WE'RE SPLITTING SOME OF THE WASTEWATER COSTS INTO THE WATER BILL COST. AND SO IT'S OVERALL, IT'S JUST NOT SHOWING THE TRUE COMPARISON, APPLES TO APPLES WITH WHAT WE'RE TRYING TO DO. I CANNOT UNDERSTAND OR LOOK AT THE CHART WHERE CITY BIG CITY HAS $23.87. WHERE WE'RE GOING TO IS $70. SO AND FULLY UNDERSTANDING THAT THIS IS NOT A TRUE COMPARISON EITHER. SO I JUST WANT TO MAKE SURE THAT WE, WE COME AS CLOSE TO MOVING FORWARD AS WE CAN TOWARDS IT. I THINK THE DIFFERENCE IS, IS SOME OF THE PROJECTS THAT ARE INCLUDED. SO YOU'RE NOT GOING TO BE ABLE TO COMPARE APPLES TO APPLES, BECAUSE FRISCO MAY NOT HAVE THE SAME WATER PROJECTS THAT WE HAVE. SO THERE'S NOT GOING TO BE A WAY TO COMPARE. IS THAT AS CLOSE TO AS POSSIBLE? I UNDERSTOOD YOUR POINT THAT WE HAVE OTHER PROJECTS. I'M SURE EVERY CITY HAS THEIR OWN PROJECTS AND WE CANNOT COMPARE.

THAT'S FINE. IF MR. GARRETT UNDERSTANDS YOUR QUESTION, THAT'S FINE. I WAS JUST TRYING TO EXPLAIN TO YOU THAT THE DIFFERENCE IS, YOU KNOW, GARLAND AT $77 MAY HAVE MORE PROJECTS OR MORE COST ASSOCIATED WITH THEIRS. SO NO MATTER HOW HARD WE TRY, WE'RE NOT GOING TO BE ABLE TO BE COMPARED TO GARLAND'S COST. THAT'S THAT'S THE ONLY THING I'M SAYING. WELL, LET ME ADD SOMETHING, BECAUSE I JUST WENT TO FRISCO'S WEBSITE AND I THINK THERE MAY BE A MISTAKE MADE ON THAT ONE. IT STATES THAT 2387 IS THE CHARGE FOR THE FIRST 2000 GALLONS, AND THEY TACK ON 528 FOR EVERY THOUSAND BEYOND. SO THAT WOULD PUT ANOTHER 20. I MEAN, IT'S STILL LOWER, BUT IT WOULD PUT IT MORE IN THE $50 RANGE. YEAH, I APOLOGIZE FOR 7000 GALLONS. AND I JUST WENT TO LOOK TO SEE IF THEY HAD SOMETHING ON WHY IT WAS SO LOW, JUST SO THAT THAT MAY BE PART OF THAT. ON WHAT HAPPENED THERE, BECAUSE Y'ALL CALCULATED THE SEVEN ON THE RESIDENTIAL CORRECTLY. I GUESS WE DID, BUT THEY HAVE TIERED. AND THEN FOR THE BIG WATER USERS IT GETS MUCH, MUCH HIGHER OVER TIME. I'M GOING TO ASSUME COMMERCIAL AND GOLF COURSES THAT ARE OVER 80,000 ARE PAYING $9 PER THOUSAND INSTEAD OF FIVE, SO IT ALMOST DOUBLES BY THE TIME YOU GET TO THE BIG USERS. SO BUT THAT WOULD MAKE A LITTLE BIT OF DIFFERENCE IF YOU TACKED ANOTHER CALL IT 30 BUCKS ON. ALL OF A SUDDEN THEY'RE JUST ABOUT AT THE RATE THAT WE'RE AT FOR A TOTAL BILL BEFORE THEY ADJUST ANYTHING. THEIR LAST ADJUSTMENT WAS JANUARY 1ST, SO THANK YOU FOR THAT. JUST SINCE IT WAS SUCH AN OUTLIER, I PULLED IT UP. COUNCILMAN DUKE, WOULD YOU LET HIM FINISH REAL QUICK AND I'LL COME RIGHT BACK TO YOU. THERE YOU GO. I CAN ONLY MAKE A DECISION OR AN OPINION BASED ON WHAT I SEE IN FRONT OF ME. NO, NO, I UNDERSTAND. I JUST WAS CURIOUS AS TO AS TO WHY THE LARGE DIFFERENCE THERE. AND MY APOLOGIES AGAIN TO COUNCIL FOR THAT MISTAKE. THAT'S OKAY, COUNCILMAN DUKE. THANK YOU, MR. MAYOR. I'D LIKE A SCENARIO ONE.

OKAY. STILL LOOKING TO HEAR FROM COUNCILMAN HOOVER. I'M GOOD WITH SCENARIO ONE. OKAY. AND COUNCILMAN PICKENS, I'M GOOD WITH SCENARIO ONE AS WELL. OKAY. SO I THINK THAT GIVES YOU ALL DIRECTION FOR 2026. AND WE CAN ALWAYS HOPE THAT POTENTIALLY WE GET SOME RELIEF FROM THE WATER DISTRICT. MAYBE MAYBE I KNOW I KNOW WE ALL LAUGH. I CAN STILL HOPE THAT WE GET SOME RELIEF IN THE FUTURE ON SOME OF THAT, BUT. OKAY, SO THAT GIVES THE DIRECTION THERE FOR NEXT YEAR.

WAS THERE ANYTHING ELSE YOU NEEDED THIS EVENING? NO, SIR. THAT'S WHAT WE NEEDED. WE WILL TAKE THAT INFORMATION FOR SCENARIO ONE AND WE'LL PUT IT INTO THE PROPOSED BUDGET. AND WE WILL ALSO BRING THE WATER SEWER RATES BACK AT THE NEXT MEETING TO HAVE AN OFFICIAL ADOPTION OF THE NEW RATES FOR THE NEXT BUDGET YEAR. OKAY. THANK YOU, THANK YOU. SO THAT DOES CONCLUDE

[WS2. Discuss the Fiscal Year 2025-26 Budget - All Funds.]

OUR FIRST WORK SESSION. WE'LL MOVE TO OUR SECOND, WHICH IS TO DISCUSS FISCAL YEAR 20 2526 BUDGET ALL FUNDS. SO I KNOW MR. PARKER WILL BE PRESENTING. I KNOW WE WALKED THROUGH

[00:50:05]

EVERYTHING LAST MEETING, BUT I BELIEVE YOU HAD WANTED TO PROVIDE AN UPDATE AS WELL AS THE CARRY FORWARD ITEM. SO, MR. PARKER. YES, SIR. MAYOR AND COUNCIL, NOTHING CHANGED FROM THE INFORMATION THAT WAS PRESENTED DURING LAST BUDGET MEETING. THE LIST BEFORE YOU OR THE CARRY FORWARD ITEMS. AND THESE ITEMS ARE ITEMS THAT EITHER WE WILL NOT ACQUIRE BY OCTOBER THE 1ST OR SEPTEMBER THE 30TH, OR THEY'RE PROJECTS THAT WE'RE IN THE MIDDLE OF THAT WILL NOT BE COMPLETED BY OCTOBER THE 1ST. SO THAT'S WHY WE WILL CARRY THOSE FUNDS FORWARD. I'M HAPPY TO ANSWER ANY QUESTIONS OVER THE PREVIOUS MATERIAL WE DISCUSSED OR THESE ITEMS HERE. AND THEN.

DO THEY HAVE TO ADOPT THE PUBLIC HEARING OR THAT'S JUST THE NEXT TWO WEEKS, OKAY. AND THEN THE NEXT MEETING WILL BE THE PUBLIC HEARING. OKAY, I DID HAVE A QUESTION AND I APOLOGIZE. I DIDN'T GET IT TO YOU EARLIER. NO PROBLEM. I SEE IT ON HERE. THE TEX-DOT H CIP FM 544 PROGRAM SIGNALS AND LIGHTS. COULD YOU HELP ME WITH? BECAUSE I KNOW THAT. AND THE REASON I MENTIONED IT IS BECAUSE WE HAD TALKED ABOUT PEFKOS FOR UPDATING THE LIGHTS. I DON'T KNOW IF THAT'S THE SAME TYPE OF THING. I'M NOT NOT A SIGNAL TECHNICIAN, SO I WASN'T SURE IF THAT'S SOMETHING THAT MIGHT BE COVERED UNDER THE PEFKO PROPOSAL OR IF IT'S SOMETHING COMPLETELY DIFFERENT.

NO, THIS IS DIFFERENT. THIS ISN'T A PART OF THE PEFKOS. I DON'T KNOW EXACTLY WHAT THIS IS.

HE STARTED BACKING UP WHENEVER YOU. BUT I KNOW IT'S NOT A PART OF THAT. OKAY, I JUST WASN'T SURE AND I WANTED TO ASK. I THINK THIS IS PART OF THE COG. I'LL JUST LET TOM. I'M SORRY ABOUT IT. SO THIS IS ACTUALLY THE CITY'S CONTRIBUTION. TEX DOT'S DOING A LOT OF THE DESIGN OUT THERE ON ON THE 544 CORRIDOR. WE DO HAVE A MATCH THAT WE HAVE TO PROVIDE. SO THIS IS THIS WAS JUST OUR MATCH TO THEIR TO THEIR DESIGN. OKAY. I REMEMBER NOW WHAT THAT'S ABOUT.

I JUST DID NOT RECOGNIZE THE, THE VERBIAGE LINE ITEM AND VERBIAGE THERE. YEAH. THE ACRONYM COUNCIL OBVIOUSLY WE'VE HAD THIS IN FRONT OF US. WE HAVE THIS IN FRONT OF YOU. DO YOU HAVE ANY QUESTIONS ON ANY OF THE ITEMS THAT ARE LISTED UNDER THE CARRY FORWARD? NOT SEEING ANY.

SO OKAY, I THINK I THINK WE KIND OF WENT THROUGH ALL THESE LAST YEAR WHEN WE WENT THROUGH BUDGET. SO I THINK WE UNDERSTAND AT TIMES THE PROCUREMENT PROCESS CAN STILL BE A LITTLE DIFFICULT.

PERFECT. AND THEN LIKE I SAID, THE NEXT MEETING WILL BE THE PUBLIC HEARING. MISS BROWN MENTIONED THE ADOPTION OF THE WATER, SEWER RATES, AND THERE'S TWO PUBLIC HEARINGS. RIGHT. YES.

THERE'S ONE PUBLIC HEARING. OKAY. SCHEDULE. THANKS. THAT IS EVEN BETTER. SO WE DO. TODAY WE RECEIVE THE CERTIFIED VALUES FROM DALLAS COUNTY OR ROCKWALL COUNTY. ROCKWALL COUNTY, WE'LL RECEIVE THE CERTIFIED VALUES FRIDAY FOR COLLIN COUNTY. IT'LL TAKE 3 OR 4 DAYS TO GET THE RATE CALCULATED. AUGUST 11TH, THE BUDGET BOOK WILL BE SUBMITTED TO THE CITY SECRETARY'S OFFICE AND AVAILABLE TO THE PUBLIC ON THE 12TH. IS THE PUBLIC HEARING. THE 21ST WILL BE ALL THE REQUIRED NOTIFICATIONS AND THEN THE ADOPTION OF THE BUDGET WILL BE ON THE 26TH. OKAY, SO BEFORE I KIND OF MOVE TO POINTING THAT THE EDC STUFF IS HERE, I KNOW RACHEL'S HERE, BUT THEY'RE NOT PRESENTING COUNCIL DID. ARE THERE ANY QUESTIONS ABOUT ANY OF THE OTHER SLIDES OR BUDGET INFORMATION? I WANTED TO OPEN IT UP BECAUSE. COUNCILMAN, I JUST HAD A QUICK QUESTION ON GENERAL FUND SUMMARY ALL THE WAY TO THE LAST PAGE. WE'RE CARRYING FORWARD 1.44 MILLION ON THE CARRY CARRY FORWARD PROJECTS THAT WE HAVE ON THE BEGINNING, ESTIMATED BALANCE, I GUESS TEN ONE IS THAT 1.4 MILLION REFLECTED BASED ON THE CARRY FORWARD IN THAT BALANCE, OR HOW WE'RE PUTTING THAT 1.4 THAT WE HAVE NOT SPENT OR USED AS WE'RE CARRYING IT FORWARD. BECAUSE I SEE HERE, I SEE IT HERE AS TAKING IT OUT OF THE BUDGET BASED ON WHAT IT WILL BE LEFT ON

[00:55:05]

NINE 30, 26, BUT I DON'T SEE HOW IT'S ADDED TO IT. WELL WE DIDN'T THE CARRY FORWARDS WERE JUST DUE THIS WEEK, SO WE HAVEN'T ADDED THAT MONEY. OKAY. TO THE TO THE GENERAL FUND SUMMARY GENERAL FUND. THE FUND BALANCE YOU SEE THERE. IT'S BEFORE THIS BEING ADDED. CORRECT. THANK YOU. OKAY.

AND THAT WON'T BE IN THE FUND BALANCE THOUGH THAT THE CARRY FORWARD WILL BE PUT IN THEIR RESPECTIVE ACCOUNTS OKAY. FOR THE DEPARTMENT. YEAH I JUST SAW IT THAT IT WAS TAKEN OUT AT THE END OF IT, BUT I DIDN'T SEE IT WHERE IT WAS ADDED TO ANYTHING. SO IT LOOKS LIKE OUR GENERAL FUND ESTIMATE AT THE END OF 2026, IT WILL LOOK LOWER BY 1.4 MILLION. OKAY. YEAH. IF YOU GO TO OH I SEE WHAT YOU'RE. YEAH. YEAH. HE WAS JUST SAYING IS THAT 1.44 INCLUDED IN THE 23 329. SO THE IT HAS AN ESTIMATED 2329. UP AT THE TOP IS THE 1.4 MILLION INCLUDED IN THAT THAT WERE THEN DEBITING OUT. NO, THAT MEANS WE DON'T SPEND IN THIS BUDGET YEAR. WE PUT BEING SPENT AND 2626 THE ANSWER IS STILL NO. THANK YOU. YES. ALL RIGHT. COUNCIL, ANY OTHER QUESTIONS? OKAY. AS I AS I SAID, I WON'T MAKE MR. PARKER PRESENT. I CAN SEE BOTH JASON AND RACHEL HIDING TOWARDS THE BACK. WE HAD THE EDC PRESENTATION LAST TIME AND THEIR INFORMATION IS INCLUDED IN THE LAST FEW SLIDES. ARE THERE ANY QUESTIONS THAT WE WOULD NEED TO CALL THEM FORWARD THAT COUNCIL HAS AT THIS TIME ON THEIR BUDGET? THEIR BOARD APPROVED THEIR BUDGET AS WELL? YES. GOOD POINT. THEIR BUDGET WAS APPROVED BY THE BOARD, COUNCILMAN MALIKI. NO I DON'T IF THEIR BOARD APPROVED THE BUDGET, I DON'T. YES, IT WAS APPROVED AT THEIR LAST MEETING. GOOD. OKAY. WELL, IT DOESN'T LOOK LIKE WE HAVE ANY OTHER QUESTIONS, SIR. OKAY. THANK YOU. ANYTHING ELSE FOR US? NO, SIR. THANK YOU FOR YOUR HELP AND SUPPORT THIS YEAR. WITH THAT. THAT DOES CONCLUDE OUR

[RECONVENE INTO REGULAR SESSION]

[EXECUTIVE SESSION]

WORK SESSIONS. WE'LL MOVE INTO REGULAR TO THEN MOVE INTO EXECUTIVE SESSION UNDER SECTION 551.072 DELIBERATION REGARDING REAL PROPERTY CLOSED MEETING IS ONE. CONSIDERING THE SALE OR ACQUISITION OF PROPERTIES LOCATED AT BROWN EUBANKS. 544 COOPER FROM 544 SAND AND JACKSON, OAK REGENCY STEELE STATE HIGHWAY 78, BROWN STATE HIGHWAY 78, SKYVIEW AND UNDER SECTION 551.087 DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS S TWO DELIBERATION REGARDING COMMERCIAL OR FINANCIAL INFORMATION THAT THE WEDC HAS RECEIVED FROM A BUSINESS PROSPECT, AND TO DISCUSS THE OFFER OF INCENTIVES FOR PROJECTS. 2020 2-1B 2020 2-1, C 2020 3-1, C 2023 TWO 2020 3-88 2023 DASH 11 B 2020 4-2D 2020 4-5 2020 4-5, F 2020 4-8D 20 2490 2024 DASH TEN, C 2024 DASH 12 TO 2020 5-28 2020 5-3B 2025 DASH 48 2025 DASH 40 2025.

DASH 40 2025. DASH 40 2020 5-5B 2020 55C 2020 5-5, F 2020 FIVE. DASH FIVE, G 2020 5-6A 2025, SIX B 2020 56C 2020 FIVE 620 2560 2025 SIX. F 2020 FIVE SIX. G 2020 578 2020 5-7B 2020 57C 2025 SEVEN. DE 2020 5-7E.

[RECONVENE INTO OPEN SESSION]

WITH THAT, WE'LL RECONVENE FROM EXECUTIVE SESSION INTO OPEN SESSION COUNCIL. DO WE HAVE ANY ACTIONS TO TAKE COMING OUT OF EXECUTIVE? I DO MAYOR, MAYOR PRO TEM I'LL MAKE A MOTION TO AUTHORIZE THE EDC TO ENTER INTO A PERFORMANCE AGREEMENT WITH THE PROJECT. 2023 DASH 11 B IN AN AMOUNT NOT TO EXCEED $100,000. WE HAVE A MOTION AS STATED. DO WE HAVE A SECOND COUNCILMAN STRING? I WILL SECOND THE MOTION COUNCIL. WE HAVE A MOTION AS STATED WITH A SECOND. PLEASE CAST YOUR VOTE. MOTION CARRIES SIX ZERO. SO WITH THAT, THAT DOES COMPLETE OUR AGENDA FOR THE EVENING. WE'RE WE CAN. I'M NOW OPEN TO A MOTION TO ADJOURN. OH I APOLOGIZE. WE NEED TO READ OUR

[READING OF ORDINANCES]

READ OUR ORDINANCES. I FORGOT, WE'RE STILL. YES. ORDINANCE NUMBER 2025, DASH 29, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS. RELEASING A PORTION OF THE CITY OF WILEY'S EXTRATERRITORIAL JURISDICTION, CONSISTING OF ONE TRACT OF LAND TOTALING 6.01 ACRES, LOCATED AT 2205 EAST STONE ROAD, TRACK 186 OF THE FRANCISCO DE LA PENA SURVEY, COLLIN COUNTY, TEXAS, AND CONTRACTING THE BOUNDARY LIMITS OF THE CITY OF WILEY'S

[01:00:04]

EXTRATERRITORIAL JURISDICTION, ACCORDINGLY PROVIDING A SAVINGS REPEALING CLAUSE, SEVERABILITY CLAUSE, AND AN EFFECTIVE DATE. THAT IS ALL, MAYOR. THANK YOU, MISS STORM. WITH THAT, THAT DOES CONCLUDE OUR AGENDA THIS EVENING. AND NOW I'D BE OPEN TO A MOTION TO ADJOURN. COUNCILMAN STRANGE, I MAKE A MOTION TO ADJOURN. MOTION TO ADJOURN? DO WE HAVE A SECOND, COUNCILMAN PERKINS? SECOND MOTION WITH A SECOND TO ADJOURN. COUNCIL, PLEASE CAST YOUR VOTE. MOTION CARRIES SIX ZERO. WE'RE

* This transcript was compiled from uncorrected Closed Captioning.

Jul 22, 2025 City Council & Work Session

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