Aug 12, 2026 City Council

[00:00:07]

GOOD MORNING, AND WELCOME TO THE AUGUST 12TH CITY COUNCIL MEETING. WE WILL BEGIN WITH THE INVOCATION AND PLEDGE LED BY COUNCILWOMAN MARCIA. DEAR HEAVENLY FATHER, WE COME HERE BEFORE YOU WITH A GRATEFUL HEART, ASKING FOR YOUR OVER, FOR YOUR COVERING OVER OUR CITY AND EVERYONE WHO SERVES IT AS A NEW SCHOOL YEAR APPROACHES, PLACE EXTRA HEDGE OF PROTECTION AROUND OUR STUDENTS AND ALL OF OUR HIGH SCHOOLS, COLLEGES, ELEMENTARY SCHOOLS. AND LORD, THANK YOU FOR ALL THAT YOU DO. BLESS EVERY PERSON THAT HELPS WITH EDUCATION, FROM HOUSEKEEPING ALL THE WAY TO THE SUPERINTENDENT, PLEASE PUT AN EXTRA HEDGE OF PROTECTION OF OUR CITY LEADERSHIP, EMPLOYEES, MAYOR HALEY, AND EVERY PERSON THAT HELPS OUT WITH OUR COMMUNITY. PLEASE GIVE US THE WISDOM TO LEAD, HUMILITY TO LISTEN, AND COURAGE TO SERVE.

MAY YOUR GRACE COVER TYLER AND YOUR PEACE GUIDE US. IN JESUS NAME. AMEN. AMEN, AMEN. UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS. ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. ALL RIGHT. I'LL ENTERTAIN A MOTION FOR

[MINUTES]

JUNE 24TH. I HAVE A MOTION TO HAVE A SECOND. SECOND, HAVE A MOTION FROM COUNCILMAN NICHOLS AND A SECOND FROM COUNCILWOMAN HAWKINS. ALL IN FAVOR? AYE. ANY OPPOSED? MINUTES ARE APPROVED.

[P-1 Request that the City Council: 1) Consider receiving a presentation of the Fiscal Year 2026-2027 Proposed Budget; 2) Consider voting to place proposals to adopt an ad valorem tax rate and adopt the final fiscal year 2026-2027 budget as action items for the September 9, 2026 City Council meeting, and; 3) Consider voting to schedule public hearings on the proposed property tax rate and the proposed budget on the agendas for the August 26, 2026 and September 9, 2026 City Council Meetings.]

[00:05:03]

AS A RESULT, WE ARE NOW FORCED TO CONSIDER TAKING ON DEBT TO FUND THESE CAPITAL IMPROVEMENTS, WHICH WILL ULTIMATELY LEAD TO HIGHER COSTS FOR TYLER RESIDENTS IN THE LONG RUN.

TOGETHER, THESE PURCHASES REPRESENT APPROXIMATELY $12.3 MILLION IN MAJOR PUBLIC SAFETY CAPITAL NEEDS. PLANNING FOR THEM NOW WILL HELP THE CITY REPLACE AGING EQUIPMENT BEFORE IT BECOMES UNRELIABLE, WHILE CONTINUING TO PROVIDE THE LEVEL OF EMERGENCY RESPONSE. OUR COMMUNITY EXPECTS AS CONSTRUCTION PROGRESSES. ON THE DOWNTOWN IMPROVEMENTS PROJECT, THE PROPOSED BUDGET BEGINS PLANNING FOR THE CARE OF COMPLETED AREAS. THE BUDGET INCLUDES $252,232 FROM THE TAX INCREMENT REINVESTMENT ZONE. NUMBER FOUR FOR MAINTENANCE.

THIS FUNDING WILL HELP PROTECT THE CITY'S INVESTMENT AND SUPPORT THE ONGOING CARE OF THE NEW PUBLIC SPACES AND IMPROVEMENTS AS THEY ARE COMPLETED USING THE TOURISM AND HOTEL OCCUPANCY TAX FUNDS. WE WILL CONTINUE TO MAKE TARGETED IMPROVEMENTS THROUGHOUT THE ROSE COMPLEX. IT IS IMPORTANT TO REMEMBER THAT THESE FUNDS MUST BE ALLOCATED TO PROJECTS THAT GENERATE TOURISM. THE PROPOSED BUDGET INCLUDES $50,000 FOR PHASE FOUR OF THE STAMPED CONCRETE BED REPLACEMENT IN THE TYLER ROSE GARDEN, AND $245,000 FOR PHASE TWO OF THE DEMOLITION AND IMPROVEMENT WORK AT THE FORMER FAIRGROUNDS, INCLUDING THE CONSTRUCTION OF THE OUTSIDE DECK OF THE HISTORIC MAYFAIR. LAST YEAR, THE CITY COUNCIL APPROVED A BUDGET TO CREATE HOLIDAY LIGHTS DISPLAY IN THE GARDEN. THIS INITIATIVE DOUBLED THE NUMBER OF VISITORS IN DECEMBER, INCREASING FROM 5000 TO 10,800 THIS YEAR. WE PLAN TO ENHANCE THE HOLIDAY DECORATIONS MASTER PLAN FOR THE ROSE GARDEN CENTER BY ADDING $30,000 TO THE BUDGET. THESE ADDITIONAL ELEMENTS WILL HELP THE GARDEN SHINE EVEN BRIGHTER DURING THE HOLIDAY SEASON. TOGETHER, THESE PROJECTS CONTINUE THE WORK OF MAINTAINING AND IMPROVING ONE OF TYLER'S MOST VISIBLE TOURISM AND COMMUNITY DESTINATIONS. THE PROPOSED BUDGET MAINTAINS OUR COMMITMENT IN INVESTING IN PARKS AND RECREATION FACILITIES. THROUGHOUT TYLER, WE'RE ALLOCATING $802,500 FROM THE PARK IMPROVEMENT FUND FOR ENHANCEMENTS AT STEWART PARK, LOCATED ON FRANKSTON HIGHWAY. BUDGET INCLUDES FUNDING TO REPLACE THE CHILLER AT THE GLASS RECREATION CENTER. WE ALSO RECOMMEND THE CITY REINSTATE AN IN-HOUSE MOWING CREW TO MAINTAIN MORE THAN 1000 ACRES OF PARKLAND. THIS WOULD INVOLVE HIRING ONE CREW LEADER AND FOUR MAINTENANCE TECHNICIANS, WITH A TOTAL PERSONNEL COST OF $298,740, PLUS $175,497 FOR EQUIPMENT. WHILE WE ANTICIPATE SAVINGS BEGINNING IN THE FIRST YEAR, THOSE SAVINGS MAY BE LOWER INITIALLY DUE TO THE NEED TO PURCHASE NEW EQUIPMENT. OVERALL, WE ESTIMATE SAVINGS OF $65,000 IN FISCAL YEAR 2027 225,000 IN FISCAL YEAR 2028, AND OVER A QUARTER OF $1 MILLION IN FISCAL YEAR 2029. BRINGING THIS WORK BACK IN HOUSE WILL ALLOW THE CITY TO HAVE MORE DIRECT CONTROL OVER SCHEDULING AND SERVICE, WHILE ALSO GENERATING GENERATING GREATER SAVINGS OVER TIME. WE PROPOSE ESTABLISHING A NEW STREET CREW COMPRISED OF 4 TO 5 POSITIONS DEDICATED TO ASSISTING THE CRACK, SEALING AND REPAIR PROJECTS. RATHER THAN CONTINUE TO CONTRACT THESE PROJECTS EACH YEAR BY UTILIZING CITY STAFF FOR THIS WORK, WE ESTIMATE WE CAN COVER AN ADDITIONAL 7.68 LANE MILES THROUGH THE ANNUAL ASPHALT ENHANCEMENT PROGRAM AND AN EXTRA 16.9 LANE MILES THROUGH THE SEALCOAT PROJECTS. THE INITIAL COST TO CREATE THIS CREW IS ESTIMATED AT $1.04 MILLION, COMPARED TO APPROXIMATELY $1.25 MILLION IN PROJECTED CONTRACT COSTS FOR 2026. BASED ON THESE FIGURES, THIS INITIATIVE IS EXPECTED TO SAVE AROUND $200,000 IN THE FIRST YEAR AND SUBSEQUENT YEARS.

SAVINGS ARE ANTICIPATED TO REACH APPROXIMATELY HALF $1 MILLION DUE TO THE ABSENCE OF INITIAL CAPITAL EXPENDITURES NEEDED TO ESTABLISH THE CREW. THIS APPROACH NOT ONLY INCREASES THE VOLUME OF WORK COMPLETED, BUT ALSO OFFERS A MORE SUSTAINABLE, LONG TERM FINANCIAL STRATEGY FOR THE CITY. AS TECHNOLOGY ADVANCES AND BECOMES MORE COST EFFECTIVE, WE ARE DISCOVERING NEW WAYS TO IMPROVE OUR SERVICES. WE PROPOSE ADDING SOFTWARE THAT WILL UTILIZE THE CITY'S CURRENT FLEET OF DASH CAMERAS, ALONG WITH ADDITIONAL VEHICLES EQUIPPED WITH SAMSARA TECHNOLOGY TO AUTOMATICALLY IDENTIFY AND PRIORITIZE ROADWAY ISSUES. THESE ISSUES MAY INCLUDE POTHOLES, SURFACE DETERIORATION, INFRASTRUCTURE

[00:10:01]

THESE INVESTMENTS SUPPORT BOTH PREVENTIVE MAINTENANCE AND REPAIRS, HELPING EXTEND THE LIFE OF OUR INFRASTRUCTURE AND ADDRESS NEEDS THROUGHOUT THE CITY. TYLER WATER UTILITIES IS CONTINUING TO INVEST IN EQUIPMENT AND INFRASTRUCTURE THAT HELP PROTECT WATER QUALITY AND KEEP WATER AND WASTEWATER SERVICES RELIABLE. THIS PROPOSED INCREASE OF $173,000 FOR OPERATING IMPROVEMENTS WILL ENABLE STAFF TO MONITOR WATER QUALITY MORE EFFECTIVELY, PROTECT CRITICAL EQUIPMENT AND MAINTAIN CONSISTENT WATER PRESSURE ACROSS THE SYSTEM.

ADDITIONALLY, THE BUDGET ALLOCATES $13.6 MILLION FOR CASH FUNDED CAPITAL IMPROVEMENTS. KEY PROJECTS INCLUDE THE $6.07 MILLION DEDICATED TO UPGRADES IN OUR WASTEWATER SYSTEM, AND $7.53 MILLION FOR IMPROVEMENTS TO OUR WATER SYSTEM. FOR RESIDENTS, THESE IMPROVEMENTS TRANSLATE TO MORE RELIABLE SERVICE, IMPROVED WATER QUALITY PROTECTION AND A REDUCED RISK OF SERVICE DISRUPTIONS AS WE REPLACE AGING EQUIPMENT. SINCE THESE CAPITAL PROJECTS ARE FUNDED WITH CASH, THE CITY CAN IMPLEMENT THESE UPGRADES WITHOUT TAKING ON ADDITIONAL DEBT. THE PROPOSED BUDGET CONTINUES INVESTMENT IN STORMWATER INFRASTRUCTURE AND DRAINAGE. IT INCLUDES $700,000 FOR CAPITAL STORMWATER PROJECTS IN FISCAL YEAR 2027, ALONG WITH $5.8 MILLION IN FUNDING FOR DRAINAGE PROJECTS. THESE RESOURCES ALLOW THE CITY TO CONTINUE ADDRESSING DRAINAGE NEEDS, MAINTAINING EXISTING INFRASTRUCTURE AND PLANNING PROJECTS THAT HELP REDUCE FLOODING RISKS FOR THE SOLID WASTE DEPARTMENT. THIS BUDGET IS INTENDED TO PROVIDE A PATH FORWARD TOWARD MORE SUSTAINABLE OPERATIONS, WHILE CONTINUING TO PROVIDE HIGH QUALITY SERVICE AT A REASONABLE COST TO RESIDENTS. THE DEPARTMENT NEEDS TO LOOK CLOSELY AT HOW BOTH AT HOW BOTH HOW TRASH COLLECTION SERVICES ARE DELIVERED AND HOW THEY ARE FUNDED. SEVERAL OPTIONS ARE BEING EVALUATED, BUT NO OPERATIONAL CHANGES WOULD TAKE EFFECT UNTIL JANUARY 1ST, 2027. WE INTEND TO BRING BACK THE PROPOSED OPTIONS TO COUNCIL EARLY IN THE 2027 FISCAL YEAR. THE PROPOSED BUDGET ALSO INCLUDES $130,000 FOR NEW ROUTE SOFTWARE. THIS TECHNOLOGY WILL GIVE THE DEPARTMENT BETTER INFORMATION TO MANAGE ROUTES, IMPROVE EFFICIENCY AND MAKE MORE INFORMED OPERATIONAL DECISIONS. EARLIER THIS YEAR, THE CITY COUNCIL ADOPTED THE TYLER TOMORROW COMPREHENSIVE PLAN. NOW IT IS TIME TO BEGIN IMPLEMENTING SOME OF THOSE PROPOSED CHANGES. THE BUDGET INCLUDES INVESTMENTS AIMED AT HELPING TO HELP THE CITY EVALUATE DEVELOPMENT MORE EFFECTIVELY AND PLAN FOR FUTURE GROWTH. WE ARE RECOMMENDING ADDITIONAL $110,000 TO COMPLETE A WATERSHED TIMING ANALYSIS, COMBINED WITH $50,000 PREVIOUSLY APPROVED THIS CURRENT FISCAL YEAR AND CARRIED FORWARD. THE TOTAL ANTICIPATED PROJECT COST IS $160,000. THE STUDY WILL EVALUATE WATERSHED TIMING, DRAINAGE PATTERNS, AND POTENTIAL IMPACTS RELATED TO FUTURE DEVELOPMENT. THE RESULTS WILL HELP THE CITY DETERMINE WHETHER UPDATES TO STORMWATER REGULATIONS, DESIGN CRITERIA OR MITIGATION REQUIREMENTS ARE NEEDED TO PROTECT PUBLIC INFRASTRUCTURE, REDUCE FLOOD RISK, AND SUPPORT SUSTAINABLE GROWTH. THE BUDGET ALSO INCLUDES A $200,000 STATE OF TEXAS GENERAL LAND OFFICE GRANT FOR AN UPDATE TO THE UNIFIED DEVELOPMENT CODE. OUR EMPLOYEES ARE CENTRAL TO EVERY SERVICE THE CITY PROVIDES. THE PROPOSED BUDGET INCLUDES A 2% PAY INCREASE TO ALL CIVIL SERVICE EMPLOYEES, AND A 2% MERIT INCREASE FOR ELIGIBLE EMPLOYEES WHO MEET PERFORMANCE EXPECTATIONS. THE ESTIMATED COSTS, INCLUDING BENEFITS, IS $1.86 MILLION. THE CITY IS SELF-INSURED AND CONTINUES AND WILL CONTINUOUSLY EVALUATE PREMIUMS TO ENSURE OUR PLANS REMAIN SUSTAINABLE FOR THE LONG TERM. RISING HEALTH COSTS ARE A MAJOR CONCERN AS THEY CONTINUE TO INCREASE. FOR THIS REASON, THE BUDGET ACCOUNTS FOR SCHEDULED INCREASES IN EMPLOYEE HEALTH PREMIUMS. THE BLUEBONNET PLAN WILL SEE AN INCREASE OF $10 PER MONTH. THE AZALEA PLAN WILL INCREASE BY $20 PER MONTH, AND THE ROSE PLAN WILL INCREASE BY $40 PER MONTH. THE GENERAL FUND SUPPORTS MANY OF THE SERVICES RESIDENTS RELY ON EVERY DAY, INCLUDING POLICE, FIRE, PARKS, STREETS, TRAFFIC, THE LIBRARY, MUNICIPAL COURT AND ANIMAL SERVICES. TYLER CONTINUES TO HAVE THE LOWEST PROPERTY TAX RATE AMONG TEXAS CITIES. BECAUSE OF THAT, SALES TAX IS THE LARGEST SOURCE OF REVENUE FOR OUR GENERAL FUND.

[00:15:02]

PEOPLE LOVE THE LIBRARY. THEY LOVE THE SERVICES THAT IT PROVIDES. BUT IF WE WERE TO ELIMINATE THE LIBRARY, WE WERE TO SAY TO CLOSE IT ENTIRELY FOR THE YEAR. THAT WOULD FUND THE OPERATIONS FOR THE POLICE DEPARTMENT FOR 21 DAYS. SO YOU WOULD NOT EVEN GET A FULL MONTH OUT OF CLOSING OFF THIS SERVICE. THAT IS ESSENTIAL AND NEEDED BY THE COMMUNITY. IT SHOWS. AS FAR AS THE TIGHTNESS THAT COMES WITH THE GENERAL FUND AND THE SERVICES THAT WE PROVIDE, THIS CONTEXT HIGHLIGHTS OUR FUNDING DECISIONS. A SIGNIFICANT MAJORITY OF THE GENERAL FUND IS ALREADY DEDICATED TO ESSENTIAL SERVICES, PARTICULARLY PUBLIC SAFETY, LEAVING A MUCH SMALLER PORTION AVAILABLE TO ADDRESS THE CITY'S OTHER NEEDS. TYLER'S TAXABLE VALUE TAXABLE PROPERTY VALUE INCREASED BY ABOUT 2.6% THIS YEAR, REACHING APPROXIMATELY $12.535 BILLION OF PERSONAL AND BUSINESS PROPERTY. THE PROPOSED PROPERTY TAX RATE IS 24.0206 $0.03 PER $100 OF TAXABLE VALUE, COMPARED WITH THE CURRENT RATE OF 23.645 $0.02. AT THE PROPOSED RATE, THE AVERAGE OF AN AVERAGE HOMESTEAD VALUED AT $286,241, WOULD PAY ABOUT $693 IN CITY PROPERTY TAXES. THAT IS AN INCREASE OF APPROXIMATELY $48 PER YEAR, OR $4 PER MONTH.

OVERALL, THE CITY EXPECTS TO COLLECT ABOUT $33.97 MILLION IN PROPERTY TAX REVENUE, AN INCREASE OF $1.71 MILLION. THE PROPOSED BUDGET CONTINUES THE PHASE TRANSITION TO UNIFORM VOLUMETRIC RATES. THIS CHANGE IS NOT EXPECTED TO AFFECT MOST RESIDENTIAL CUSTOMERS, BECAUSE THEY TYPICALLY USE LESS THAN 25,000 GALLONS OF WATER PER MONTH. THE ADJUSTMENT WILL PRIMARILY AFFECT COMMERCIAL AND INDUSTRIAL CUSTOMERS WITH HIGHER LEVELS OF WATER USE.

MAKING THIS TRANSITION IS ALSO CRITICAL TO PROMOTE WATER CONSERVATION AND TO GAIN ELIGIBILITY FOR IMPROVED BOND INTEREST RATES IN GRANT FUNDING THROUGH THE TEXAS WATER DEVELOPMENT BOARD FOR RESIDENTIAL AND COMMERCIAL WATER CUSTOMERS WITHIN THE CITY, THE RATE FOR THE FIRST 25,000 GALLONS WILL REMAIN UNCHANGED AT $3.75 PER THOUSAND GALLONS.

HOWEVER, THE RATE FOR 25,000 TO 1 MILLION GALLONS WILL INCREASE FROM $3.29 TO $3.75 PER THOUSAND GALLONS. INDUSTRIAL WATER RATES WILL FOLLOW A SIMILAR STRUCTURE, WITH PROPOSED INSIDE CITY RATES RANGING FROM $3.04 TO $3.41 PER THOUSAND GALLONS, DEPENDING ON THE LEVEL OF USAGE. WASTEWATER RATES WILL ALSO CONTINUE TRANSITIONING TOWARDS A MORE UNIFORM RATE STRUCTURE FOR CUSTOMERS INSIDE THE CITY. THE RATE FOR THE FIRST 25,000 GALLONS REMAINS UNCHANGED AT $4.10 PER THOUSAND GALLONS. RATES FOR USAGE ABOVE 25,000 GALLONS WOULD INCREASE, WITH THE LARGEST CHANGES AFFECTING COMMERCIAL AND OTHER HIGH USE CUSTOMERS. RATES OUTSIDE THE CITY WOULD FOLLOW A SIMILAR STRUCTURE. SINGLE AND MULTI-FAMILY HOMES CONTINUE TO HAVE WASTEWATER VOLUME CHARGES CAPPED AT 10,000 GALLONS.

BECAUSE OF THIS CAP, MOST RESIDENTIAL CUSTOMERS WOULD NOT BE AFFECTED BY CHANGES AT HIGHER USAGE LEVELS. SEVERAL CHANGES IN THE PROPOSED BUDGET WOULD AFFECT UTILITY BILLS THIS YEAR. FIRST, THE REGULATORY COMPLIANCE FEE WOULD INCREASE TO HELP PAY DEBT ISSUED FOR PROJECTS REQUIRED UNDER THE EPA WASTEWATER CONSENT DECREE. THIS FEE WOULD INCREASE BY $5 ON OCTOBER 1ST AND ANOTHER $5 ON JANUARY 1ST, BRINGING THE TOTAL MONTHLY FEE TO $36.17 AFTER JANUARY 1ST. DIVIDING THE INCREASE INTO TWO PHASES SPREADS THE IMPACT ACROSS THE FISCAL YEAR. ANOTHER INCREASE IS EXPECTED FOR FISCAL YEAR 2028, AS A RESULT OF ANY DEBT APPROVED BY THE CITY COUNCIL RELATED TO THE CONSENT DECREE IN FISCAL YEAR 2027. THE PROPOSED BUDGET ALSO INCREASES THE FEE PAID BY THE COMMERCIAL WASTE HAULERS BY 6%, AND

[00:20:04]

RESIDENTIAL PROPERTIES WOULD BE CHARGED IN WHOLE E R USE, WITH A MINIMUM OF ONE. COMMERCIAL AND OTHER NON RESIDENTIAL PROPERTIES WOULD BE CHARGED BASED ON THE ACTUAL AMOUNT OF HARD SURFACE. THIS CHANGE COULD BE WOULD BE MORE EQUITABLE, CONNECTING THE STORMWATER FEE MORE DIRECTLY TO THE AMOUNT OF RUNOFF A PROPERTY CREATES, RATHER THAN HOW MUCH WATER THE CUSTOMER USES. THIS IS A MAJOR CHANGE. WE WILL PRESENT MORE IN DEPTH AT OUR NEXT COUNCIL MEETING AND WE. AGAIN, NO CHANGES WOULD GO INTO EFFECT UNTIL JANUARY 1ST. THE PROPOSED BUDGET INCLUDES SEVERAL FEE ADJUSTMENTS INTENDED TO IMPROVE COST RECOVERY FOR NEW RESIDENTIAL BUILDING PERMITS. THIS RATE WOULD INCREASE FROM $0.35 TO $0.47 PER SQUARE FOOT, BASED ON 60% COST RECOVERY. UNDER THE INTERNATIONAL CODE COUNCIL FORMULA. FOR EXAMPLE, THE PERMIT FEE FOR A 2500 SQUARE FOOT HOME WOULD INCREASE BY $1050 TO $1422. DESIGNING THE ZONING SIGN DEPOSIT WOULD INCREASE FROM $20 TO $50. TO RECOVER THE HIGHER COST OF PRODUCING AND MAINTAINING THE LARGER NOTICE SIGNS REQUIRED BY THE STATE OF TEXAS. UNDER RECENT LEGISLATION. THIS YEAR, WE EVALUATED THE LANDFILL FEES FOR SOLID WASTE IN COMPARISON TO OTHER LANDFILLS IN THE AREA. WE PROPOSE INCREASING THE LANDFILL ROYALTY FEE BY $19 IN TWO PHASES, AN INCREASE OF $12 ON OCTOBER 1ST, 2026, AND THEN FOLLOWED BY AN ADDITIONAL $7 ON APRIL 1ST, 2027. ADDITIONALLY, THE ACCESS OR TIPPING FEE WOULD RISE FROM $15 TO $25, WHICH IS EXPECTED TO CONTRIBUTE APPROXIMATELY $500,000 TO OUR PARKS CAPITAL FUND. THESE INCREASES WILL HELP US REMAIN COMPETITIVE AND PROVIDE A BETTER RETURN ON INVESTMENT, AS WELL AS FAIR COMPENSATION FOR AN ASSET OWNED BY THE RESIDENTS OF TYLER. IT'S IMPORTANT TO NOTE THAT THESE FEE INCREASES WILL ONLY AFFECT LANDFILL USERS THAT ARE NOT INSIDE OF THE CITY AND WILL IMPACT, NOT IMPACT, OUR UTILITY CUSTOMERS. AS PART OF THE BUDGET AND TAX RATE ADOPTION PROCESS, THE COUNCIL WILL BE ASKED TO TAKE THE NECESSARY ACTIONS REQUIRED BY STATE LAW TO ADOPT A PROPOSED TAX RATE. THIS RATE WILL SERVE AS THE CEILING FOR FURTHER DISCUSSION AND WILL BE USED FOR PUBLICATION PURPOSES. ADDITIONALLY, THE COUNCIL WILL ESTABLISH A SCHEDULE FOR PUBLIC HEARINGS AND FINAL CONSIDERATION. STAFF RECOMMENDS HOLDING THE PUBLIC HEARINGS DURING THE NEXT REGULARLY SCHEDULED CITY COUNCIL MEETING ON AUGUST 26TH, WITH A SECOND PUBLIC HEARING AT THE MEETING ON SEPTEMBER 9TH. WE ANTICIPATE BRINGING THE TAX RATE AND BUDGET TO THE COUNCIL FOR ADOPTION AT THE SEPTEMBER 9TH MEETING. I'D LIKE TO EXPRESS MY GRATITUDE TO OUR BUDGET TEAM AND ALL THE DEPARTMENTS THAT CONTRIBUTED TO THIS PROPOSAL. THEIR EFFORTS REFLECT MONTHS OF REVIEWING COMMUNITY NEEDS, EVALUATING OPTIONS, AND BALANCING AVAILABLE RESOURCES WITH THE ESSENTIAL SERVICES OUR COMMUNITY RELIES ON. I ALSO WANT TO THANK THE MAYOR AND CITY COUNCIL FOR YOUR GUIDANCE THROUGHOUT THE YEAR. THE PROPOSED FISCAL YEAR 2027 BUDGET DEMONSTRATES A CONTINUED INVESTMENT IN OUR EMPLOYEES, OUR INFRASTRUCTURE, PUBLIC SAFETY, QUALITY OF LIFE AND DEPENDABLE SERVICES FOR ALL RESIDENTS OF TYLER. THANK YOU FOR THE OPPORTUNITY TO PRESENT THE FISCAL YEAR 2027 BUDGET FOR YOUR CONSIDERATION. THANK YOU EDITOR. APPRECIATE THE PRESENTATION. I ALSO WANT TO THANK HEDRICK AND LAUREN. I SEE THEM HERE THIS MORNING. THANK YOU VERY MUCH FOR YOUR TIME, DETAIL AND EFFORTS AND YOUR ENTIRE OFFICE FOR PUTTING IN THE WORK ON THIS BUDGET. THANK YOU VERY MUCH. I KNOW THIS BUDGET WASN'T AN EASY ONE. WITH THE CONSTRAINTS THAT WE WERE FACING WITH THE STATE RIGHT NOW. SO THANK YOU FOR YOUR TENACITY AND AND WORKING THROUGH THIS ONE. I KNOW EDITOR, I HAVE SOME QUESTIONS FOR YOU, SOME JUST SOME FOLLOW UP QUESTIONS. AND THEN I'LL OPEN IT UP TO, TO EVERYBODY FOR SOME ADDITIONAL QUESTIONS. AND YOU BRIEFLY MENTIONED WHEN THE DOLLAR BILL WAS PUT UP THERE, KIND OF WHERE EVERYTHING KIND OF GOES. AND AND YOU MENTIONED OUR PROPERTY TAX REVENUE DOESN'T EVEN COVER OUR OUR POLICE DEPARTMENT. SO I WANTED TO GIVE THOSE NUMBERS. THE PROPERTY TAX REVENUE IS EXPECTED TO BE 34 MILLION. OUR POLICE DEPARTMENT BUDGET, 39 MILLION, AND OUR FIRE

[00:25:04]

AND AS WITH MANY OF THE DIFFERENT THINGS THAT YOU PROBABLY DEAL WITH IN LIFE, MANY, MUCH OF THE TECHNOLOGY COSTS ARE CONTINUING TO INCREASE. AND THOSE ARE THE SAME FOR THE CITY. AND SO WHAT WE ARE. AND SO WITH THAT, THEN THOSE COMPANIES LOOK TO PASS ON THEIR COSTS AND INCREASE THOSE COSTS. AND SO WE LOOK AT THE NEGOTIATION ON THOSE. WE ARE ONE OF THE FIRST ADOPTERS OF THE BODY CAMERAS. WE ADOPTED BODY CAMERAS BACK IN PROBABLY ABOUT 15 YEARS AGO FOR OUR POLICE DEPARTMENT. AND THAT TECHNOLOGY, AS WE FOUND, BECAME OUTDATED. AND SO WHEN MUCH OF WHAT WE PURCHASED, THEN WE HAD TO GO REPURCHASE AS FAR AS FOR THE NEW EQUIPMENT, AS IT BECOMES OUTDATED, WE MOVE TO A SUBSCRIPTION PROGRAM IN ORDER TO BE ABLE TO HAVE THE MOST UP TO DATE OF THE AS FAR AS BODY CAMERAS, IN-CAR CAMERAS AND TASERS. AND SO WITH THAT BECOMES THEN A CONTINUAL COST. THAT'S WITH THAT. AND THOSE ARE GOING UP. AND CHIEF, DO YOU WANT TO TALK A LITTLE BIT ABOUT JUST THE PERCENTAGE INCREASE THAT YOU ARE SEEING THIS COMING YEAR? YES, SIR. WE WE WENT INTO THIS CONTRACT FOR AN EXTENDED PERIOD OF TIME FOR THE FIVE YEAR PERIOD AS WE GET READY TO RENEGOTIATE THAT GOING FORWARD, STARTING NEXT DECEMBER. WHAT AXON TELLS US IS THAT THEIR ANNUAL COST RATE OF INCREASE IS BETWEEN 4 AND 8%, DEPENDING ON THE DEMAND, AND THEY ARE THE LEADING PROVIDER OF ALL THESE SERVICES IN THE NATION. AND AS WE TRY TO NEGOTIATE THAT DOWN, TO GET AN EXTENDED PERIOD OF TIME AS WE NEGOTIATE, IT'S IT'S IMPORTANT THAT WE PUT THOSE IN THERE BECAUSE IF WE LOSE A TASER, ONE GETS DAMAGED, ONE, OUR BODY CAMERAS, ANYTHING STOPS WORKING, THEY REPLACE IT TO US AT NO COST. DURING THAT DEBT SERVICE PERIOD THAT WE'RE LOOKING AT. WE'RE GOING THROUGH THAT PROCESS NOW AND WE ANTICIPATE EVERYTHING INCREASING IN PRICE AS WE GET READY TO MOVE FORWARD. THANK YOU. CHIEF. AND YOU TALKED ABOUT CEOS. THAT'S NOT SOMETHING THAT WE ARE CONSIDERING WITH THE ADOPTION OF THIS BUDGET. THAT'S JUST INITIAL DISCUSSIONS THAT WE'LL HAVE FOR FOR LATER DOWN THE ROAD, CORRECT? YES, SIR. AND SO THE MAYOR BRINGS UP AN ESSENTIAL POINT THAT KIND OF WE TALKED ABOUT VERY BEGINNING OF THE PRESENTATION. AND THAT IS, YOU KNOW, IN THE STATE OF TEXAS, THERE ARE DIFFERENT DEBT MECHANISMS THAT ARE UTILIZED, UTILIZED. THE ONE THE CITY OF TYLER HAS UTILIZED QUITE OFTEN HAS BEEN REVENUE BONDS. THAT IS TIED SPECIFICALLY TO ESPECIALLY UTILITIES DEBT THAT YOU'VE TAKEN ON. YOU TOOK ON REVENUE, DEBT OR BONDS. AND FOR THE NEW CONFERENCE CENTER TIED TO HOTEL TAX REVENUE THAT YOU RECEIVE. SO NONE OF IT, THOUGH, TIED TO PROPERTY TAXES. AND SO THE OTHER INSTRUMENTS THAT THE CITY OR THE STATE PROVIDES ARE GENERAL OBLIGATION DEBT. AND YOU PROBABLY HEARD QUITE A BIT OF THOSE ABOUT THOSE IN RELATIONSHIP TO THINGS LIKE THE COUNTY FOR THE NEW COURTHOUSE OR FOR THEIR ROAD MAINTENANCE PROJECT PROGRAMS FOR THE SCHOOL DISTRICT, FOR THEIR AS FAR AS IMPROVEMENTS OF ALL THE SCHOOLS HERE IN TYLER. SO THEY HAVE A PORTION OF THEIR PROPERTY TAX RATE THAT HAS WITH IT, YOUR CURRENT PROPERTY TAX RATE HAS WHAT'S CALLED AN INTEREST AND SINKING FUND, AND THAT AMOUNT IS ZERO. WE'VE BEEN VERY PROUD OF THAT NOW FOR ABOUT THE PAST COUPLE OF DECADES. BECAUSE OF THAT KEEPS OUR RATE AS ONE OF THE LOWEST IN TEXAS. IT MAKES IT AS FAR AS JUST SOMETHING THAT IS AFFORDABLE FOR OUR CITIZENS AND OUR COMMUNITY AND BUSINESSES. BUT THE DIFFICULTY THAT THE STATE HAS PROVIDED OR PUT US UNDER IN RELATIONSHIP TO THE CONSTRAINTS ON HOW MUCH YOU CAN GROW THAT PROPERTY TAX RATE, WHAT YOU ARE ABLE. CURRENTLY, EVERYTHING YOU COLLECT GOES INTO MAINTENANCE AND OPERATIONS.

AND SO EVEN THE 24% PROPERTY TAX RATE WE RECOMMEND TO THE COUNCIL FOR CONSIDERATION STILL GOES ALL INTO MAINTENANCE AND OPERATIONS OF THE CITY, BUT THAT IS CONSTRAINED TO ABOUT 3.5% GROWTH EVERY YEAR IN RELATIONSHIP TO THE REVENUES THAT YOU CAN GENERATE. AND SO WITH THAT CONSTRAINT, THAT HAS CREATED AN UNINTENDED CONSEQUENCE THEN OF WHERE FOR FIRE ENGINES, FOR MAJOR POLICE VEHICLES SUCH AS SWAT VEHICLES, COMMAND TRAILERS, THOSE TYPE OF THINGS OF HOW DO YOU PAY FOR THOSE AND FUND THOSE? AND THAT'S WHERE WE LOOK AT THE OTHER INSTRUMENT THE STATE PROVIDES, WHICH IS CERTIFICATES OF OBLIGATION. SO ONE OF THE CONVERSATIONS THAT WE WILL BRING TO THE COUNCIL DURING THIS NEXT FISCAL YEAR WILL BE ABOUT A CONVERSATION ABOUT POSSIBLE ISSUANCE OF DEBT RELATED TO CERTIFICATES OF OBLIGATION, WHICH THE COUNCIL HAS THE AUTHORITY TO, TO ISSUE FOR CAPITAL EQUIPMENT, FOR OUR PUBLIC SAFETY, FOR OUR FIRE DEPARTMENT AND OUR POLICE DEPARTMENT, IN ORDER TO MAKE SURE THAT THEY HAVE THE EQUIPMENT THEY NEED IN ORDER TO TAKE CARE OF US. AND SO THAT IS

[00:30:02]

AND AS FAR AS HOW THEY ARE OUT THERE ON THOSE STREETS. AND IT'S MORE OF A RISK MANAGEMENT TYPE OF APPLICATION. WE HAVE THE ABILITY NOW THROUGH SOME A COUPLE OF THE ITEMS THAT WE HAD IN THIS BUDGET THAT ALLOW FOR THEM TO TURN THAT TECHNOLOGY SO WE CAN BE ABLE TO HAVE MONITORING THE STREETS THEMSELVES AND THEIR STREET CONDITIONS, AND THEN CREATING WORK ORDERS FROM THAT. SO WHILE WE WILL STILL ARE THRILLED TO TAKE IN THE CONCERNS AND, YOU KNOW, ALL THE ADDITIONAL, LIKE I SAID, THE EYES OF THE CITIZENS THAT HELP US OUT EACH AND EVERY DAY TO HAVE THEN OUR VEHICLES, THEN PICKING UP AS FAR AS STREET CONDITIONS AND REPORTING THAT TO US IS JUST IT IS A IS A QUITE AN ADVANCEMENT THAT WE'RE BEING ABLE TO EMPLOY WITH THE GOAL BE TO STILL REPAIR POTHOLES ONCE THEY'RE REPORTED WITHIN 24 HOURS. THAT IS STILL THE GOAL. NOW, THE QUESTION ALWAYS IS, IF WE HAVE ESSENTIALLY, YOU KNOW, AN INCREASE IN YEAH, AN INFORMATION COMING IN AND WORK ORDERS THAT WILL SLOW IT DOWN TO SOME DEGREE, BUT THAT WILL STILL ALWAYS BE OUR GOAL. OKAY. SWITCHING TO WATER, YOU MENTIONED THE WATER RATES WILL LIKELY NOT CHANGE FOR THE RESIDENTIAL USERS BECAUSE THE FIRST 25000 GALLONS WILL REMAIN AT THAT CURRENT RATE. FOR FOR THOSE THAT ARE LISTENING AND WATCHING, I'M SURE THERE'S A TON OF PEOPLE WATCHING OUR CITY COUNCIL MEETING. DO YOU KNOW WHAT THE AVERAGE HOUSEHOLD USES IN WATER? AVERAGE HOUSEHOLD? CÉDRIC ACTUALLY MAY IT'S GOING TO BE A LESS THAN 25,000. MOST OF OUR. IS IT AROUND 8000? ABOUT 8000, 8000, 10,000 GALLONS IS WHAT MOST FAMILIES ARE UTILIZING AT THEIR HOMES. AND SO THE THE WAY THAT THIS HAS BEEN DESIGNED FOR THIS YEAR, WHILE THEY WILL SEE AN INCREASE IN THE EPA REGULATORY COMPLIANCE FEE AND THE OTHER RATES THAT WE CHARGE FROM THE WATER AND THE SEWER ESPECIALLY, WILL REMAIN FLAT FOR FOR OUR RESIDENTIAL CUSTOMERS. SO THAT AND THEN THAT IN ADDITION TO THAT, YOU KNOW, THE MAYOR, YOU MAY BE ABOUT TO ASK THIS, BUT IN ADDITION TO THAT, THE WAY THAT YOU'RE LOOKING AT REWORKING THE ESSENTIALLY THE WAY THAT YOU CHARGE FOR DRAINAGE TO THE EQUIVALENT RESIDENTIAL UNIT, THE ARE YOU THAT WILL ALSO HAVE AN IMPACT ON OUR RESIDENTS. SO HOPEFULLY SEEING THAT START TO DECREASE SLIGHTLY, IT MAY BE RELATIVELY NEGLIGIBLE FOR THE RESIDENTIAL CUSTOMER IN REGARDS. BUT BUT THERE WILL BE A, YOU KNOW, A SLIGHT REDUCTION THEY SHOULD SEE IN THAT AREA UNIT AS IT IS APPLIED TO THEIR HOMES. NOT

[00:35:02]

THE STATE OF TEXAS, ESPECIALLY IN A LOT OF ITS GRANT PROGRAMS AND OTHER GRANTS, WOULD ACTUALLY LOAN PROGRAMS THAT IT PROVIDES FOR WATER AND WASTEWATER SERVICES ALSO LOOKS AT DRAINAGE TYPE, BUT IT ALSO WANTS TO SEE HOW ARE YOU CHARGING? ARE YOU CHARGING AT WHAT IS REALLY A MORE EQUITABLE RATE FOR HOW THE SERVICE IS PROVIDED? THAT'S THE REASON YOU'VE SEEN ON THE UTILITY SIDE THAT THIS IS, YOU KNOW, CONTINUE PHASE THREE OF MOVING ON WITH OUR UNIFORM VOLUMETRIC RATE, MOVING FROM THAT DECLINING RATE STRUCTURE TO A UNIFORM VOLUMETRIC RATE TO MAKE IT MORE EQUITABLE FOR ALL WHO UTILIZE OUR WATER AND WASTEWATER SYSTEMS. AND TO THE SAME IS IN EFFECT NOW THAT WE HAVE TO LOOK AT IN RELATIONSHIP TO OUR DRAINAGE FEES, BECAUSE OUR DRAINAGE FEES ARE. IT DOESN'T, YOU KNOW, YOU CAN THINK ABOUT SOME OF YOUR LARGER AS FAR AS BIG BOX AND THE LIKE INDUSTRIES, ETC. AS FAR AS WHERE THERE IS QUITE A BIT OF PAVING A LOT OF AS FAR AS THEN RUNOFF IS CREATED FROM THAT.

WHEREAS MOST RESIDENTIAL HOMES, A LOT OF THAT RUNOFF IS ABSORBED INTO THE GROUND, INTO THE SOIL. AND SO IT'S KIND OF KEPT THEIR ON THEIR PROPERTIES. SO WE WANT TO MAKE SURE THEN THAT WHAT YOU PAY FOR THAT DRAINAGE FEE IS EQUITABLE TO THEN THE IMPACT THAT YOUR PROPERTY IS HAVING. ALL RIGHT. LAST QUESTION FOR ME, YOU WE OBVIOUSLY TALKED ABOUT THE REGULATORY COMPLIANCE FEE WITH THE CONSENT DECREE PROJECTS. AND, AND WE HEAR A LOT OF, YOU KNOW, WE'RE ALMOST FINISHED WITH WITH THIS PROJECT. DOES THAT MEAN THOSE FEES WILL THEN START ROLLING OFF OF OUR UTILITY BILLS? AND SO YES, WE'RE WRAPPING UP YEAR NINE, GETTING INTO YEAR TEN. BUT JUST SO EVERYBODY IS AWARE, I KIND OF EXPLAIN WHY THOSE FEES ARE ON THERE AND WHY THEY WOULD NOT ROLL OFF AFTER YEAR TEN WHEN, WHEN WE COMPLETE THIS MANDATED PROJECT FROM THE FEDERAL GOVERNMENT. THAT'S THAT'S A BIG QUESTION. AND SO BEAR WITH ME ON THE THE ANSWER, BECAUSE IT'LL IT MAY BE A LITTLE LENGTHY. SO THE CITY OF TYLER IS IN AN EPA CONSENT DECREE BECAUSE FOR DECADES IT DIDN'T DO THE MAINTENANCE ON ITS WASTEWATER LINES. AND ULTIMATELY, THAT'S WHAT WE'RE TALKING. A LOT OF PEOPLE KIND OF THINK, OH, YOU'RE TALKING ABOUT TREATMENT PLANS. NO, WE'RE NOT TALKING ABOUT TREATMENT PLANTS. THOSE WE HAVE QUITE A BIT OF INVESTMENTS STILL TO DO IN IMPROVING FOR WASTEWATER TREATMENT PLANTS. BUT WE DIDN'T REALLY MAKE AS FAR AS DO THE MAINTENANCE AND THE REPAIRS TO OUR WASTEWATER LINES IN THE GROUND, TO THE EXTENT THAT WE PROBABLY SHOULD HAVE. THUS, WE HAD VERY LOW RATES BECAUSE WE WEREN'T CHARGING ANYTHING TO RECOVER FOR MAINTENANCE. WHAT IS THEN? THE EPA CAME IN APPROXIMATELY PROBABLY ABOUT 15 TO 18 YEARS AGO, TO REALLY START PUSHING ON THE CITY. WE'D ALREADY BEEN IN KIND OF IN THEIR SIGHTS FOR PREVIOUS ACTIONS. BUT THEN AS FAR AS NEGOTIATION ON THE EPA CONSENT DECREE, WHICH, YOU KNOW, WENT INTO EFFECT NINE YEARS AGO, AND THE INTENT FOR THAT WAS YOU WERE GOING TO TOUCH EVERY LINE IN THE GROUND WASTEWATER LINE AND CLEANING OUT AS FAR AS TELEVISING IT AND THEN ALSO IMPROVING CAPACITY. AND SO REALLY, THE PAST COUPLE OF YEARS ABOUT IMPROVING CAPACITY, THEY'VE, YOU KNOW, AS YOU KNOW, THEY OFTENTIMES FOR ON TYLER WATER UTILITIES, THEY BRING BIG TICKET ITEMS TO YOU FOR AS FAR AS ON THE EPA RELATE TO THE EPA CONSENT DECREE, BUT THAT'S ABOUT MOST OF THE TIME NOWADAYS FOR THE PAST FEW YEARS, INCLUDING THIS NEXT YEAR IS IMPROVING CAPACITY BY REBUILDING LINES AND BUILDING BIGGER LINES TO BE ABLE TO HANDLE THE AMOUNT OF WASTEWATER THAT FLOWS THROUGH TYLER. AND SO WITH THAT, THERE WILL BE ONE MORE YEAR AND THERE'LL BE ANOTHER DEBT ISSUANCE. THEY WILL ASK OF THE COUNCIL FOR TO FINISH OFF THE PROJECTS IN RELATIONSHIP TO THE EPA CONSENT DECREE. THE DEBT THAT YOU MAY ISSUE THIS COMING YEAR WILL THEN GET WRAPPED INTO THE EPA COMPLIANCE FEE. THE REGULATORY COMPLIANCE FEE FOR 2028 THAT WE WILL CHARGE NOW, AS MAYOR ALLUDED TO, THAT WILL BE INTENDED. IF EVERYTHING GOES RIGHT, THAT WILL BE THE LAST ADDITIONAL AMOUNT. THAT WILL BE THE REGULATORY COMPLIANCE FEE WILL INCREASE BY. AND SO THAT NEXT YEAR, AS FAR AS INCREASE THAT, WE MAY ASK, WILL BE THE LAST TIME THAT THAT PIECE HITS. NOW THERE IS THE THING WITH THAT IS THAT IS DEBT THAT IS TYPICALLY 25 TO 30 YEARS FOR EACH OF THOSE DIFFERENT DEBT INSTRUMENTS THAT WE HAVE ISSUED IN RELATIONSHIP TO THE REGULATORY COMPLIANCE FEE. AND SO AS THOSE ARE PAID OFF OVER THE NEXT 25 TO 30 YEARS, AND, YOU KNOW, FOR SOME OF IT, YOU MAY EVEN START TO SEE, I'M NOT GOING TO SAY RAISE EXPECTATIONS, SAY A LITTLE BIT SOONER, BUT BEYOND EARLIER THAN THE 25 TO 30 YEARS, YOU START TO SEE THAT DECLINE. SO JUST AS IT INCREASED BECAUSE OF THE DEBT ISSUANCE, AS THAT DEBT ISSUANCE GETS PAID, THEN OVER THE NEXT 30 YEAR KIND OF PERIOD, THAT WILL THEN START TO DECREASE TO THE POINT OF THEN HOPEFULLY, YOU KNOW, WE'LL COME BACK 30 YEARS FROM NOW TO SEE WHAT HAPPENS, BUT THAT THAT REGULATORY COMPLIANCE FEE IS PRETTY WELL NIL. SO THAT'S, THAT'S HOW THAT INSTRUMENT AND THEN THE REGULATORY COMPLIANCE FEE WERE CREATED. THANK YOU. THAT'S ALL THE QUESTIONS I HAVE.

[00:40:03]

THERE IS SOMETHING NAGGING AT ME. WE GOT ONE WITH THE AIRPORT RELATED TO THE WORK THAT WE'RE DOING TO HOPEFULLY GET A SECOND AIRLINE. YES, THE THE FAA HAS BEEN. AND THAT'S WHERE THE THE FEW TIMES WE HAVE BEEN ABLE TO DO STRAIGHT GRANTS TO THE FEDS HAVE TYPICALLY BEEN PUBLIC SAFETY RELATED OR AIRLINE RELATED THROUGH THE FAA. AND WE'VE BEEN VERY SUCCESSFUL IN FAA GRANTS TO HELP PAY FOR RUNWAY EXPANSIONS. YOU KNOW, AS FAR AS, YOU KNOW, INCENTIVES FOR NEW AIRLINES. YOU KNOW, WE CONTINUE WORKING WITH CONGRESSMAN MORAN ON A NEW AIR TRAFFIC CONTROL TOWER AND SEE POTENTIAL FOR THAT IN YEARS TO COME. AND THEN ON THE FEDERAL SIDE, YOU'LL OCCASIONALLY LIKE THE EDWARD BYRNE JUDICIAL GRANT THAT YOU'LL PAY, YOU'LL APPROVE EVERY YEAR ON THE POLICE SIDE THAT COMES DOWN FROM THE FEDS AND THEN COPS GRANTS, SAFER GRANTS THAT PAY FOR POLICE OFFICERS OR FIREFIGHTERS FOR, YOU KNOW, KIND OF THE FIRST THREE YEARS WE'VE BEEN ABLE TO GET THOSE. BUT IN THE CASE OF UTILITIES, THERE HASN'T BEEN A

[00:45:01]

AND SO SOMETIMES YOU'LL HEAR ABOUT THOSE TYPE OF SITUATIONS. WE ARE IN CONTACT WITH OUR CONGRESSMAN. THE MAYOR HAS BEEN ABLE TO WORK WITH OUR CONGRESSMEN ON, YOU KNOW, KNOWING MAKING SURE THAT HE UNDERSTANDS THAT, ESPECIALLY ON OUR UTILITY SIDE, BECAUSE IF WE CAN'T PROVIDE WATER, IF WE CAN'T PROVIDE WASTEWATER, WE CAN'T GROW. AND IF WE CAN'T GROW, WE CAN'T HAVE MORE CONSTITUENTS. AND, YOU KNOW, IT'S THAT IF THERE IS OPPORTUNITIES TO THE FEDERAL LEVEL, PLEASE MAKE SURE THAT WE ARE AT THE TABLE. YEAH, WE I MET WITH HIM LAST LAST WEEK, I BELIEVE IT WAS. AND WE TALKED ABOUT FEDERAL GRANTS FOR THE AIRPORT AND, AND OTHER OPTIONS THAT WE CAN EXPLORE WITH HIS OFFICE. YEAH. KATE'S COMING UP HERE. I DON'T KNOW IF SHE HAS ANYTHING. I SAID SOMETHING WRONG. I THINK I KNOW WHAT MAY HAVE BEEN BUGGING HIM IS THAT WE DID ACTUALLY HAVE AN OPPORTUNITY. HE'S MR. CITY MANAGER IS CORRECT THAT WE DON'T USUALLY HAVE OPPORTUNITIES TO APPLY FOR GRANTS. BUT IN THE LAST LEGISLATIVE SESSION, HOUSE BILL 500 MADE IT SO THAT WE COULD SUBMIT AN APPLICATION FOR A GRANT FUNDED PROJECT, WHICH IS THAT ELEVATED STORAGE TANK THAT WE'RE PLANNING TO PUT OUT ON EARL CAMPBELL ROAD, AND THAT WE SUBMITTED THE APPLICATION FOR THAT. THAT WAS DUE AT THE END OF JULY FOR $19 MILLION. SO WE WILL BE FINDING OUT BY THE BEGINNING OF THIS NEXT YEAR IN JANUARY IF WE RECEIVE THAT GRANT. BUT I BELIEVE THAT WE ARE VERY WELL, VERY WELL POSITIONED TO OBTAIN THAT GRANT FUNDING. SO WE'RE REALLY EXCITED ABOUT THAT OPPORTUNITY. THANK YOU. KATE. YEAH. THANK YOU. YEAH. I HAVE A QUESTION FOR YOU. BACK TO THE DOLLAR BILL SLIDE. SO THAT'S PRETTY POPULAR. I FEEL LIKE I GET ASKED ABOUT THIS ONE A LOT. IT'S VERY SELF-EXPLANATORY. JUST FOR CLARIFICATION, WOULD YOU KIND OF TALK ABOUT THE TRANSFERS OUT IN THE SIXTH SENSE? WE USE KIND OF FILL OVER THAT JUST SO WE'RE VERY CLEAR. SO THE TRANSFER ACTUALLY WANT TO HAVE TO ADDRESS THE TRANSFER YOU'RE TRYING TO KEEP. THE TEACHER DIDN'T WEAR A TIE FOR NOTHING. SO COME ON UP.

STANDING BACK THERE FOR A WHILE, Y'ALL GOT ME. SO BASICALLY IF YOU LOOK AT THOSE FUN FINANCIAL STATEMENTS, THEY'RE, THEY'RE DIVIDED INTO ABOUT THREE DIFFERENT AREAS. YOUR REVENUES, YOUR EXPENSES AND TRANSFER OUTS, TRANSFERRING AND TRANSFER OUTS. BUT BASICALLY THE TRANSFER OUTS ARE ONE FUND SUPPORTING ANOTHER FUND THAT'S NOT QUITE SELF-SUPPORTING. LIKE IT CEMETERY TRANSIT. YES. AND SO THOSE THOSE ARE TRANSFER OUTS. BUT IF YOU LOOK IN THAT FUND FINANCIAL STATEMENT ON THE GENERAL FUND TOWARD THE BOTTOM OF THE FINANCIAL STATEMENT, YOU'LL SEE ALL OF THE FUNDS THAT THE GENERAL FUND IS SUPPORTING. SO AND TRANSIT IS A VERY LARGE PART OF THAT. SO THANK YOU. THANK YOU. ANYBODY ELSE? YEAH, I'M JUST INFLATION'S REAL. I MEAN, PEOPLE JUST I GET THAT THE COMMENTS ALL THE TIME OF WHY THINGS GOING UP WITH THE CITY. IT AFFECTS GOVERNMENT SERVICES ALSO. I MEAN GAS PRICES, DIESEL PRICES EVERYTHING, CONSTRUCTION PRICES, EMPLOYEE RACES. RIGHT. SO IT'S IN REAL AND THIS THIS BUDGET REFLECTS THE TIME WE'RE IN THAT. SO THAT'S THE ONLY THING THAT'S THE BIG PICTURE.

AND I ALWAYS TAKE PRIDE IN THAT. WE'RE SUCH GOOD STEWARDS OF TAXPAYER DOLLARS. SO ALWAYS SO PROUD OF THAT STEWARD WITH A D NOT A T. AND I WOULD SAY SHOULD WE SPEAK TO WHAT WHAT CUTS? WE HAVE DIFFICULT DECISIONS WE'VE HAD TO MAKE ON CUTS TO MITIGATE FEE INCREASES, ETC. THAT MAYBE COULD WE SPEAK TO THAT OR IS IT TOO SOON TO TO LOOK AT THOSE THINGS? NO, MA'AM. IS IT TOO SOON? YEAH, IT'S ALWAYS TOO SOON. SO THE PAIN IS STILL TOO REAL SO THAT PEOPLE UNDERSTAND THAT WE HAVEN'T JUST DECIDED TO RAISE FEES BECAUSE COSTS ARE UP, THAT WE'VE ALSO HAD TO MAKE SOME DIFFICULT DECISIONS AND CUTS THAT MAY FEEL PAINFUL TO SOME. YES, MA'AM. AND A LOT OF THAT, ESPECIALLY EVERY TIME, YOU KNOW, IT'S AS I WAS MAKING MENTION EARLIER, THE THE WAY THAT, YOU KNOW, THE NEW, THE NEW BILL, THE ESSENTIALLY THE NEW LEGISLATION, THE IT'S NOT NEW. IT'S, IT'S GOING ON FOR A WHILE. BUT WE, WE KNEW THAT THE PINCHES WERE GOING TO CONTINUE AND THEY WERE GOING TO CONTINUE TO, TO GET WORSE AND WORSE BECAUSE OF THE STATE LEGISLATION TO DECREASE WHAT ULTIMATELY YOU COULD. KEITH AND I ARE OLD TIMERS. WE CALL IT

[00:50:01]

AND SO THOSE THAT WE HAVE CONTRACTS WITH FOR DIFFERENT SPECIAL SERVICES, ESPECIALLY GROUPS LIKE VISIT TYLER, WE'VE BEEN ABLE TO KIND OF CONTINUE TO WORK WITH THEM BECAUSE WE HAVE A HEALTHY HOTEL TAX FUND. BUT ON THE GENERAL FUND SIDE, WE DO HAVE TO EVALUATE WHERE ARE THERE ESSENTIALLY ADJUSTMENTS THAT NEED TO BE MADE? WHERE ARE THERE AS FAR AS WITH DIFFERENT ORGANIZATIONS THAT WE NEED TO MAKE CUTS OR ADJUSTMENTS IN ORDER TO BE ABLE TO PROVIDE FOR ULTIMATELY WHAT THE CITY, WHAT OUR PROPERTY TAXES AND SALES TAXES ARE COLLECTED FOR IN RELATIONSHIP, ESPECIALLY THE THAT SLIDE IS STILL UP THERE, YOU KNOW, FOR, FOR THOSE SPECIFIC SERVICES THAT ARE PRESCRIBED BY OUR COMMUNITY THAT THEY WANT TO SEE THEIR DOLLARS GO TOWARDS FOR, TO SERVICE, TO SERVICE THEM AND TO ASSIST THEM WITH THEIR LIVES.

AND SO WE DID HAVE TO MAKE SOME DIFFERENT CUTS THERE. SOME OF THE DIFFERENT DEPARTMENTS, WE CONTINUE TO PUSH FOR EFFICIENCIES. ONE OF THE THINGS THAT, YOU KNOW, WE KIND OF WE MADE MENTION OF, AND I WANT TO KIND OF REALLY HIGHLIGHT IS, YOU KNOW, THE EVALUATION OF SOME OF OUR CONTRACTED SERVICES WE HAVE AND LOOKING AT THEIR CONTINUED COSTS. THE PARKS ONE WAS ONE I MADE MENTION OF. WE HAVE A THOUSAND ACRES OF PARKLAND. THE COST FOR CONTRACT SERVICES HAS CONTINUED TO INCREASE, AND I WANT TO MAKE SURE THAT IT IS AS WE TALK TO THEN THE OWNERS OF THOSE SERVICES, THEY ARE VERY MINDFUL AND UNDERSTAND OF, LOOK, THIS IS THIS IS WHAT IT COSTS. AND WHEN THEY TRY. THEY'VE TRIED IN THE PAST TO FIGURE OUT, HOW DO I CUT MY COST IN ORDER TO BE ABLE TO STILL PROVIDE THE SERVICE SO THAT BECAUSE THEY ENJOYED BEING A CONTRACTOR FOR THE CITY AND WE ENJOYED THE, YOU KNOW, THEIR SERVICES, WE'RE GOOD. THIS WASN'T A QUALITY, YOU KNOW, A QUALITY COMPLAINT OR A CUSTOMER SERVICE PROBLEM THAT WE'RE HAVING. THIS IS THEIR COSTS HAVE ALSO GONE UP ON THE PRIVATE SIDE, AND THEY CAN'T CONTINUE TO MEET THE ESSENTIALLY, THE COSTS THAT WE CAN PROVIDE, ESSENTIALLY WHAT WE CAN PAY FOR, FOR THE COST OF WHAT WE NEED DONE. AND SO THAT'S THE REASON WE'RE DOING AS FAR AS EXPERIMENTING WITH MOVING FORWARD WITH A CREATION OF A MOWING CREW, OF WHICH, YOU KNOW, WE HAVE INITIAL CAPITAL INVESTMENT ON THE EQUIPMENT, BUT THEN BEING ABLE TO HAVE THAT TO BE ABLE TO MOW OUR ALL OF OUR PARKS. SAME WITH OUR STREETS CREW. AGAIN, NOT A PROBLEM WITH IN REGARDS TO QUALITIES SERVICES OF, OF OUR CONTRACTORS OR ANYTHING LIKE THAT. IT'S JUST LOOKING AT WHAT THOSE ADDITIONAL COSTS HAVE GROWN BY BECAUSE OF THEIR INFLATIONARY COSTS AS WELL. CITY IS NOT THE ONLY ONE THAT DEALS WITH INFLATION. EVERYBODY DOES. AND SO FOR PRIVATE BUSINESSES, THEY STILL HAVE A BOTTOM LINE THEY HAVE TO REACH.

AND SO AS WE LOOK AT TO SAY FOR SOME OF THIS WORK, CAN WE BE ABLE TO DO AT A CHEAPER COST THAN THAN THEM BECAUSE OF JUST THEIR ONGOING COSTS ARE INCREASING TO ON THE PRIVATE SIDE. SO THOSE ARE THINGS THAT WE'VE HAD TO EVALUATE AND TO TACKLE. THANK YOU FOR EXPLAINING THAT. AND IT'S NOT LIKE WE CAN JUST BORROW FROM HOT FUNDS. NO TO BECAUSE WE'RE REQUIRED BY LAW TO KEEP THEM IN A CERTAIN LANE. I ALWAYS APPRECIATE WHEN COUNCIL MEMBERS DON'T LIKE GOING TO JAIL. RIGHT, EXACTLY, EXACTLY. YES. THANK YOU FOR FOR ADDRESSING THAT.

YOU'RE WELCOME. ANYBODY HAVE ANY OTHER QUESTIONS? ALL RIGHT. WE HAVE TO SCHEDULE A PUBLIC HEARING ON THE PROPOSED PROPERTY TAX RATE AND PROPOSE BUDGET, BOTH FOR AUGUST 26TH AND SEPTEMBER 9TH. SO I WILL ACCEPT A MOTION TO SCHEDULE PUBLIC HEARINGS ON THE PROPOSED PROPERTY TAX RATE OF 24.206 $0.03 PER $100 OF ASSESSED VALUE IN THE PROPOSED BUDGET ON THE AUGUST 26TH AND SEPTEMBER 9TH, 2026. COUNCIL AGENDAS SO MOVED. IS THERE A SECOND? SECOND. I HAVE A MOTION BY COUNCILMAN CHILDS AND A SECOND BY COUNCILWOMAN HAWKINS. ALL IN FAVOR? AYE. ANY OPPOSED? MOTION PASSES. ALSO HAVE TO HAVE A MOTION FOR PLACING THE ADOPTION

[00:55:05]

[M-1 Request that the City Council consider authorizing the City Manager to award Bid No. 26-031 for the Stewart Park development to Schumacher Construction LLC, to furnish all necessary materials, equipment, superintendence, and labor in an amount not to exceed $295,000.00.]

GOOD MORNING MAYOR. GOOD MORNING COUNCIL. GOOD MORNING. MORNING. I AM HERE FOR THE FINAL PUZZLE PIECE FOR STEWART PARK SO I'M EXCITED ABOUT THAT. I HOPE EVERYONE ELSE IS AS WELL. WE PUT OUT A BID FOR TO FURNISH ALL NECESSARY MATERIALS, EQUIPMENT, SUPERINTENDENTS AND LABOR FOR STEWART PARK DEVELOPMENT ON JUNE 12TH, AND WE OPENED THE BIDS ON JUNE 19TH. WE DID HAVE SEVEN BIDDERS, WHICH WAS GREAT. WE WENT WITH THE LOWEST BIDDER, WHICH WAS SCHUMACHER CONSTRUCTION AT $295,000. I KNOW THAT THIS MAY SEEM A LITTLE LOW, BUT I WANT YOU TO JUST KEEP IN MIND, PLEASE, FOR EVERYBODY THAT'S ALSO WATCHING THAT WE'VE ALREADY BROUGHT TO YOU CRAFTSMAN AND CXT FOR THE RESTROOMS. SO WE ARE AT A TOTAL OF $630,000 FOR STEWART PARK RIGHT NOW. AND AS ANOTHER REMINDER, THIS THE FUNDING IS BEING SOURCED FROM THE KEEP TODD BEAUTIFUL CAPITAL IMPROVEMENT ACCOUNT, WHICH IS THE LANDFILL DUMPING FEES. SO THIS IS NO COST TO OUR CITIZENS. SO IT IS RECOMMENDED. OH, SORRY.

THERE ARE THERE ARE ALL THE BIDS THAT THEY'RE JUST I'M SORRY. AND AS YOU CAN SEE, 295,000 WAS THE CHEAPEST. YOU WILL NOTICE A BIG FLUCTUATION BETWEEN SOME OF THESE. AND THAT'S BECAUSE SOME OF THE ALTERNATE BIDS THAT WE HAD WERE ALL OVER THE PLACE. AND SO SOME OF THEM ABSORBED THEM IN THEIR IN THEIR BASE BID. SOME OF THEM DID NOT ABSORB THEM IN THEIR BASE BID. BUT IF WE HAVE MONEY LEFT OVER, WE WILL BE ADDING THOSE ALTERNATES BACK. SO IT IS RECOMMENDED THAT THE CITY COUNCIL CONSIDER AUTHORIZING THE CITY MANAGER TO AWARD BID NUMBER 26031 FOR THE STEWART PARK DEVELOPMENT TO SCHUMACHER CONSTRUCTION LLC TO FURNISH ALL NECESSARY MATERIALS, EQUIPMENT, SUPERINTENDENTS AND LABOR IN THE AMOUNT NOT TO EXCEED $295,000. THANK YOU. ANYBODY HAVE ANY QUESTIONS FOR LEANN? SO I HAVE A MOTION BY COUNCILWOMAN HAWKINS. A SECOND, SECOND, SECOND BY COUNCILMAN NICHOLS. ALL IN FAVOR? AYE. ANY OPPOSED? M1 IS APPROVED. THANK YOU, THANK YOU. ALRIGHT, M2, WE'RE GOING DOWN MY LIST. IT

[M-2 Request that the City Council consider authorizing the City Manager to execute a professional services contract with BRW Architects in the amount of $740,470.00 for the design of Fire Station No. 2 Replacement.]

YOU SEE SOME OF THE STATS UP THERE, WHAT THEY'VE DONE ON FIRE STATIONS. THEY ALSO ON THEIR TEAM, THEY HAVE INCLUDED BRANDON CORPORATION FOR SITE CIVIL EMA FOR THEIR MECHANICAL, ELECTRICAL, PLUMBING AND KILGORE SURVEYING FOR SURVEYING AND TERRACON. SO THEY HAVE SOME LOCAL FIRMS THAT THEY'VE TEAMED WITH TO PURSUE AND COMPLETE THIS WORK. AND SO YOU KIND OF SEE THE BREAKDOWN OF THEIR DESIGN SERVICES. THEY'LL LOOK AT SEVERAL DIFFERENT LAYOUTS

[01:00:03]

[CONSENT]

[CITY MANAGER'S REPORT]

AND SO A FEW ITEMS OF NOTE, MR. MAYOR AND CITY COUNCIL. LAST WEEK, THE TYLER FIRE DEPARTMENT PARTICIPATED IN A SPECIALIZED TRAINING FOCUSED ON SAFETY, RESPONDING SAFETY, RESPONDING TO EMERGENCIES INVOLVING TESLA ELECTRIC VEHICLES. THIS IS ONE WHICH, YOU KNOW, YOU SOMETIMES HEAR ABOUT ON THE NEWS WITH THE ELECTRIC VEHICLES AND THE FACT THAT, YOU KNOW, THE BATTERIES UNDERNEATH THEM AND ETCETERA, JUST THAT, YOU KNOW, IT'S IT IS A DIFFERENT TYPE OF CAR FIRE TO HAVE TO FIGHT THAN WHAT WE'VE ALL KIND OF ARE USED TO. AND SO FIREFIGHTERS LEARNED ABOUT THE VEHICLE'S BUILT IN SAFETY FEATURES, HOW TO ISOLATE THE HIGH VOLTAGE ELECTRICAL SYSTEM, SAFE VEHICLE CUTTING TECHNIQUES DURING EXTRACTION, EXTRACTION OPERATIONS, AND UNIQUE CHALLENGES ASSOCIATED WITH ELECTRIC VEHICLES, FIRES. AND SO WE REALLY APPRECIATE TESLA AND THE REGIONAL FIELD TRAINER FOR SHARING THEIR KNOWLEDGE AND PROVIDING THIS VALUABLE ASSET AND TRAINING TO OUR DEPARTMENT. KEEP TYLER BEAUTIFUL'S ANNUAL DAFFODIL AND WILDFLOWER SALE IS BACK. SUPPORT COMMUNITY BEAUTIFICATION WHILE ADDING VIBRANT COLOR TO YOUR OWN LANDSCAPE WITH DAFFODIL BULBS AND WILDFLOWER SEED MIXES. THE ONLINE SALE IS OPEN NOW THROUGH SEPTEMBER 30TH, WITH ORDER PICKUP SCHEDULED FOR THURSDAY, OCTOBER 22ND AT THE ROSE GARDEN CENTER, SO YOU CAN GO ONLINE TO PLACE YOUR ORDER AND HELP KEEP TYLER BEAUTIFUL BLOOM. OH, AND ALSO, I WANT TO THANK THE CITY OF THE MAYOR AND THE CITY COUNCIL. Y'ALL HELPED PARTICIPATE IN THE 13TH ANNUAL SCHOOL IS COOL EVENT LAST THURSDAY, AUGUST 6TH. IT WAS A GREAT TURNOUT WITH OVER 2000 FREE BACKPACKS FULL OF SUPPLIES AND LOTS OF SERVICES AND VENDORS AVAILABLE FOR OUR COMMUNITY. WE THANK OUR PARKS TEAM, EXECUTIVE TOWN TEAM MEMBERS, OUR CITY COUNCIL MEMBERS. I THINK, COUNCILMAN CHARLES, YOU GAVE HAIRCUTS OR VACCINATIONS. NO. OVER AT THE ROSE. YEAH. HE GOT THE BOUGIE SPOT OVER AT THE ROSE GARDEN CENTER. AND SO. BUT Y'ALL HELP MAKE THIS A SUCCESSFUL BACK TO SCHOOL. AND AS WAS MENTIONED, YOU KNOW, A COUPLE OF TIMES, EVEN DURING THE PRAYER TODAY FROM COUNCILMAN MARSH SCHOOL, TYLER ISD IS BACK IN SESSION TODAY. DIFFERENT SCHOOLS KIND OF HAVE DIFFERENT TIMES WHERE THEY'RE GETTING BACK IN JUST TO VISIT WITH CHAPEL HILL SUPERINTENDENT YESTERDAY. THEY DON'T START TILL NEXT WEEK. SO THOSE KIDS ARE STILL GETTING TO SLEEP IN. BUT Y'ALL WITH SCHOOL IS COOL AND JUST SO MANY OTHER DIFFERENT THINGS THAT Y'ALL ARE INVOLVED IN, YOU REALLY DO HELP KIND OF SET THE STAGE FOR WHAT WILL HOPEFULLY BE A GREAT SCHOOL YEAR FOR MANY OF OUR CHILDREN HERE IN TYLER. AND THEN FINALLY, ONE OF MY FAVORITE EVENT PORCELLA. I ALWAYS FEEL LIKE I NEED TO HAVE LIKE STROBE LIGHTS AND STUFF GOING ON AS I TALK ABOUT IT WILL BE THIS SATURDAY, AUGUST 15TH OVER AT FUN FOREST POOL. IF YOU'VE GOT A DOG OR YOU JUST WANT TO GO PET OTHER PEOPLE'S DOGS, THIS IS A GREAT OPPORTUNITY TO BRING THEM. THE POOL CLOSED LAST WEEKEND. THAT WAS OUR FINAL DAY AS SCHOOL WENT BACK INTO SESSION AND THEN ALSO OUR LIFEGUARDS. I'LL GO BACK OFF TO COLLEGE, ETC. BUT KIND OF FOR THE FINAL DAY OF THE POOL BEFORE FULL CLEANUP AND EVERYTHING, WE TURN IT OVER TO THE DOGS AND THEY HAVE A GREAT TIME. AT PORCELLA. SO AGAIN, THAT'S ME THIS SATURDAY EVENING OVER AT FUN FOREST POOL.

[01:05:05]

I'M JUST MAD THEY DIDN'T FEED ME. BUT THAT'S OKAY. IF YOU ASK THEM, THEY WILL. THERE WAS A ROAST IN THE OVEN, BUT I CAME AT THE WRONG TIME. I'LL PLAN THAT BETTER NEXT TIME. THAT'S RIGHT. YEAH. THEY ALWAYS APPRECIATE WHEN WE STOP BY. SO ANYBODY HAVE ANY QUESTIONS FOR ED OR ANYTHING ELSE. YOU WANT MORE QUESTION. YES, MA'AM. JUST JOKING. OH. ALL RIGHT. WITH THAT I'LL ENTERTAIN A MOTION TO ADJOUR

* This transcript was compiled from uncorrected Closed Captioning.