City Council - Regular Meeting

second day of August 2025. I September, look at that. Yeah. Thank you so much. September. Um I declare a quorum is present and declare that the notices have been legally posted pursuant to the open uh meetings act. Would you please stand for our invocation that will be led by uh Buzz Fen and remain standing for the pledges that will be led by Councilwoman Melissa Martin. flagged the United States of America and to the republic for it stands one nation indivisible with liberty and justice for alliance to All right. Uh we are down to our citizens comments. I do have u here. Are there any more miss? All right. on our citizens comments.

Let's remember we have uh three minutes and the first one we have up is uh Mr. All right. Thank you, council members. Um so I'm in I'm here in support of HEDCO, the Henderson Economic Development Corporation. Uh the EDC's job is to incentivize business, job growth, and sustain business throughout our community. Uh I believe it should be an aggressive pursuit to those three three pillars of the EDC. Uh the current team that we have is very aggressive on those fronts and doing things like housing, business grants, land deals to make businesses come into town and sustain the business that we already have. The whole board wants what's best for Henderson as a community. And I truly do believe that. I didn't know a lot of the guys that were on the board were in uh the EDC before I became a volunteer myself on that board. And uh I really think that everybody wants the Henderson to grow and be prosperous and what's best for Henderson. Uh I think there is kind of a vocal minority out there that I don't understand maybe there's some confusion about what an EDC does. So I'd like to maybe shed a little bit of light on that. The EDC takes in sales tax dollars. And what that means is anybody that spends a dollar in Henderson and gets taxed on that, some of those funds go to the EDC. That means if you're from Timbukt, you come through and you buy a donut, we get a percentage of that. We use those funds for those three pillars, job growth, sustained business, and incentivize business to come to town. Um, it seems that there might be some rhetoric out there that that is swaying public opin on what the EDC does and how well it's doing it for our community. I just wanted to clarify, I really think that our EDC is doing what they should be doing, what they want to do. I think everybody has the right agenda within

the EDC, which is to help Henderson ultimately. I have a belief in the team that they really want that. I can't speak on Brett Gardella's past. I was not on the committee that hired him. I actually started uh my time on the board when he started. Uh, but I can see how aggressive he wants to be for those three pillars for our community. He really wants those things to happen. And historically, our EDC hasn't done those things, but we're doing them now. We're doing housing because we know that that's a thing that our community really wants. We're making business deals to try to get those businesses in town. This is really important to me. I see his vision. I see his team's vision. And I see our board's vision. And I really think that that's what they're trying to do is is further Henderson into the future. So, I'd really like to see this council pass the budget, pass the scope of work, allow us to continue what we're trying to do in Henderson. And uh like I said, if we can just get this thing passed, we really have a lot of cool things on the cusp of what's about to happen. And I think that Henderson is really really going to benefit from from what's going on. So, in closing, I just want to say that everyone here wants to make Henderson better and and I want to see the EDC get their stuff done hopefully tonight. That way, we can continue to do that. Thank you. I come before you today with serious concerns regarding the financial

management, transparency, and accountability of Headco. July 19th, I submitted an open records request for electronic copies of HEDCO's financial statements and travel expense records for board members and executive director to include travel dates, destination, hotel, etc. from 2020 to present. The response deadline was August 1st. August 8th, head co's attorney, Mr. Hardy, requested clarification, stating it was extremely broad um claimed it would be timeconuming and potentially costly. On August 11th, I responded that I wanted and I gave an example reported travel from Mr. Gardella to India and two trips to London. I requested documentation for these and any other travel during that time period. On August 29th, Mr. Hardy replied, "Head code informs me that there are no records responsive to your request regarding travel expenditures." This response is deeply concerning. According to Mr. Gardella's public LinkedIn profile. He has traveled to India, London, and South Korea on behalf of Headco. Meanwhile, Headco maintains a dedicated training and travel budget line item, yet now claims to have no travel records, receipts, or expense reports in such records. Um, if such records truly do not exist, why does this budget line item exist at all? And why are we continuing to fund it? Even more alarming, it appears some travel costs are also being allocated under advertising and marketing budget line item 7203 labeled as recruitment. This mean headco is using two separate budget lines to charge travel expenses while sim simultaneously claiming to have zero travel documentation. This is not simply poor recordkeeping. It is a serious red flag. At the February headco meeting during a discussion about budget line item 7203, the following exchange occurred. A board member asked that includes some travel in there too. Another responded has some recruitment. Miss Jacobs added the marketing is in the tra is in that budget. The trip uh yes the trips. Mr. Gardella stated recruitment is considered to be part of the marketing line. Autumn 76 7206 training and travel is for conferences I attend or that Shelby will attend. Occasionally Mandy can. That's really

what they're meant for. Later Mr. Gardella said the travel and recruitment will maintain itself fairly steady. can't do one-off things. We have to make sure we're staying in front of people when attracting them. So again, I ask, why did Headco respond that no travel documentation exists? Headco's budget is ballooning. Ballooning. Um advertising and marketing went from 70,000 in 2324 to 120,000 in 2425. That's a 71.43% increase. They're proposing 120,000 in 2526. Their um training and travel went from 12,000 in 23 to 24 to 50,000 in 24 and 25, a 316% increase. They're proposing 60,000 in 2526, an additional 20% more. Even more troubling is HeadCO's relationship with New Round 3.0 LLC, an outofstate marketing consultant hired two months after Mr. Gardella's start date. From November 2024 to August 25, we've paid them $50,000. Invoices lack clear net terms. New Realm services reportedly include branding, web design, LinkedIn content. Yet, the company has been tax forfeited since September 27, 2024. Its deliverables include a logo, which frankly could have been produced for free on Canva in business cards. Local vendors were bypassed. Even Headco is entirely funded by local sales tax as Mr. um told us and so from our small businesses and rather than reinvesting in our local economy, contracts are awarded to outofstate inactive entities that return nothing to Henderson. David Hinkle is the guiding force behind New Realm in T36 LLC. He's linked to the failed golf course project in Baytown, Texas during Mr. Gardella's tenure there. That project ended in bankruptcy, costing taxpayers an additional $1.9 million beyond the original 6 million. We cannot afford to ignore these warning signs. Removing one or two board members or terminating Mr. Gardella alone will not fix a deeply flawed system. Headco needs a complete overhaul. I'm requesting this body strongly consider

the following actions. Remove Headco financials from the consent agenda. Conduct a full review of budget items, invoices, and vendor relationships. Reject the proposed 2526 bloated budget. Post headco board amendments on their website. Adopt a true transparency and accountability resolution with enforceable actions and deadlines. and call for an outside investigation, either a forensic audit or the Texas Rangers. Require monthly attendance by department heads and the head co-executive director. No more absentee leadership. Council members, I understand each of you have a full-time job. But with at least three boards now demanding close oversight, the city's seven boards and commissions must be divided among the members and at minimum you should attend or listen to meeting recordings. They need to hold the meetings after 5:30 and at city hall, not scattered venues. Record and publish the meetings online. We need a reset. Henderson can support smart growth without compromising values. I once believe Henderson was immune to big city corruption. Sadly, that belief has changed. You wouldn't buy a car without checking under the hood. Accepting government operations at face values is just as reckless. We must ensure Rust County is a hostile environment for corruption and cronyism. Rest County is not for sale. We have repeatedly come before this body and various boards asking for pause and accountability. We've been met with silence or delay. Whether it's willful ignorance or calculated resistance, this will not blow over. If this council continues to refuse action, we are prepared to act. Under local government code 505.352, citizens may petition for an election to terminate headco. I've long um seen this as a last resort, but the longer these issues go unresolved, the more inevitable that path becomes. Please pro prove me wrong. We will not accept scapegoats or token resignations. We demand a full overhaul, real oversight, and a leadership structure that erode that earns not erodess our public trust. Thank you.

Good evening, city council, mayor, city manager. Um, uh, this is not the first time I've stood before you today, but today I come to you as a concerned citizen. When each of you took office or accepted an appointment, you signed the city of Henderson code of ethics and the code and the for elected and appointed officials. Under the section titled ethics, it states the citizens and businesses of Henderson are entitled to have a fair, ethical, and accountable local government that has earned the public's full competence for integrity. It's listed in your code of conduct. Right now, our community does not have confidence. We have documented incidents of slander, disrespect, and public taunting towards citizens, of which each and every one of you, I send a message today, have shown you yet another one. These actions directly violate the city's adopted code of conduct. This is not an isolated issue. We brought these concerns to you last month, yet nothing has changed. We continue to witness behavior that is unprofessional and unacceptable. Brett Gardella, the director of Heco, has acted without accountability and even said he didn't care whether the board approved it or not. He was going to do it anyway. Everybody heard the reporting. This kind of leadership is damaging to our community. If he can do this, what else can he do? We are also tired of apologies that carry no real meaning. Brian Ballard issued apologies to Donovan between messages but continued the same behavior. Why should we accept an apology now? He keeps doing it. Send me another one he did to today. What has changed? How can someone who repeatedly disregards the code of ethics and conduct be trusted to serve as vice president of headco? Under section three, ethics clearly states, "Each elected and appointed official shall refrain abuse of conduct, personal charges or verbal attacks upon the character or motives of other members of council, board and commissions, the staff or the public. Under the section titled conduct, the code provides

guidance on ethical behavior in the question of right and wrong. It also explains how council members and board and commission members should treat one another, city, staff, and the public. The key value throughout the entire document is respect. Under 3B, in private encounter states, continue respectful behavior in private. The same level of respect and consideration of differing points or new appointment appropriate for public discussions should be maintained in private conversations. Beware of insecurity of written notes, voice memo messages, and emails. We've sent you three already. Henderson is a small town. Elected and appointed officials are constantly be being observed by the community. Your behavior and words show as examples of how leadership should look in Henderson. honesty and respect for the dignity of every individual. I'm almost done. And in every in every word and action, every day at all times. This is serious and ongoing responsibility. The code states also that the city council may impose sanctions on boarding commission members who do not comply with the city's policies up to and including removal from office. So I ask you, have you truly read the code of ethics and conduct you agreed to uphold? The issue goes far deeper than a mural. We are what we are doing here is about preserving the integrity, the respect, and the history of our town. And I do agree with Mrs. I want better for our town. I want the division to stop. Thank you.

You summarize. I will. Mayor, there was one one submitted um public comment as well uh written by Mr. Welen Gray. He couldn't make it tonight, but um you have the letter in front of you, council, but just to summarize ultimately um he's requesting the council to reconsider the decision on the tax rate. um and thinks it would be better to leave it at the current rate, you know, the little bit that adds up to continue to be able to have capital for city. So, you can read it, but that' be part of the record. Just public comment as well. Just want to make sure y'all are aware of that. Citizens comments. So, at this time, we'll move on to presentations and announcements. We uh have one special presentation tonight. Uh this one is for Mr. Kase Weatherton. If you would you come up Okay. All right. What do you say?

Okay. Thank you. Thank you. Yeah. Uh Kase is a very special young man. Kase uh played soccer, baseball, what' you start out with? Track. He did all those things without his crutches. Uh so he has made great strides to be a beacon of light to able-bodied citizens that we say. Um, you know, and a lot of us, you know, sometimes we say, "Well, I can't do this or I can't do that." I've never heard that come from Kase. Uh, I was talking to his grandfather and he was telling me that when his, uh, cousins came down from Dallas and Houston to visit, uh, they'd be outside playing. So, if they got a spanking, he did, too. Whatever was whatever they got, he got. So he has taken those things and uh he's gone on to to make some great strides. Was it about a month ago when you went to Michigan? Yeah, about two months ago he went to uh Michigan and he was competing in uh track meet powerlifting and all of those things. And if he would have made his qualifying uh points, he would have made it to the uh Olympic trials. So he's done great things. Uh, [Applause] and if we wanted this to go on 30 minutes, I would let his mother talk. But we are so proud of you. Uh, and you just continue to do the things that you're doing and uh God will take you uh higher than we can imagine.

So what we want to do here, we want to give you a key to the city. You know, a lot of us have s have heard this said, give them their flowers while they're living. So, we're not gonna wait until you make it to the Olympic trials or the Olympics. We want you to know today how proud we are of you. And this uh key to the city, I'm not sure when it's going to open. Not sure when it's going to open, but we want to give this to you. It says, "I, Henry Pace, mayor of the city of Henderson, do hereby bestow the key to the city of Henderson. Presented to Kasem Weatherton in honor of your exceptional athletic achievements, unwavering unwavering determination, and pride you have brought to the city of Henderson. Your dedication inspires our community and reflects the true spirit of excellence. signed and sealed the day of this day of September 2nd, 2025. [Applause]

Um, I'm not much of a talker. Um, um, thank you to the council for presenting me with this award. Um, thank you to Mayor Pace. He's the one that got me into athletics um when I was like 12, 13. Um, so really thank you to him for even getting me here cuz I wouldn't be here if he didn't let me in. So um uh but yeah, thank you to my mom. Um she's about to cry. But um but um yeah, that's it. [Applause] I just want to change that. I did not start him in athletics. He started way before he got to middle school. Um, what what age was it? Five.

Four. At four. Okay. And yeah, I'll tell you this. when he played uh soccer, played without his crutches, when he ran track without his crutches. So, he's he's just soared and done uh so many great things uh without it without it. So, we're we're just proud of you. [Applause] move on to item number one of our regular session. That's uh the consideration and possible action upon tableabling tabled items from August 19th meeting resolution 2025 0801 for boards and commissions transparency. Mr. Mayor, we are um working through this resolution uh that Councilman Cersei brought us and and we're still working through the some pricing and logistics and all that with the website to do um to put all the minutes and and um any audio, video, all the different things that you know we've talked about and been suggested together. Um my suggestion would be give us a little more time so we can get that together. Um but that's up to Councilman Cersei. But I would say, and we've already tabled it, so we can't necessarily table it again, but we can sure bring it up in a in a in our future meeting coming up. I would think maybe in October we might have a little more pricing. Cheryl, you think those that will help us understand what that looks like and the logistics of that? So yes, y'all forgive me, my voice is about gone. Um, yeah, with that said, if we bring it up in October, then I will move to strike this for now.

motion. Second. All right, Mr. Cersei made the motion. Miss Martin seconded. All in favor say I. I. All any opposed? Same sign. Item number one carries. Moving to items two and three. Um, it would be my recommendation that uh we just drop items two and three. At the moment, we don't have uh Mr. Strong here. I would like to just drop those two items for right now. He's supposed to be back with us uh next week. We make a motion to items.

A second. Uh, all in favor say I. Any oppose? Same sign. Yes, ma'am. Yes, ma'am. Okay, motion carries to drop those two items. Moving on to item four. Open a second uh public hearing on the proposed tax rate to be uh nonrenewed tax rate of 0.529139 per $100 valuation of each assessment to be based upon 100% of its appraised value.

Mayor. Yes, sir. the the second public hearing um and final public hearing before um the the ordinance to approve the the proposed new the proposed rate would be the no new revenue tax rate at this point 0.529139 as you said which is a decrease of two cents from from last year but this is the second public hearing item number four. Okay. All right. Moving on to uh item five, consideration and possible actions upon closing the public hearing. to close public hearing. We have anyone that wants to asked y'all to adopt it before and I do greatly appreciate y'all. Um taxpayers are taxed out. we're getting taxed to death, frankly. And um I don't think that we're being fiscally responsible with some of the money that we have. And I think it's disingenuous to ask us to pay more than we absolutely have to pay. And um so I would respectfully ask you to do the no new revenue rate. We need to re-evaluate some things and then next year go back to the drawing board and see, you know, maybe we do zerobased budgeting and figure out what you actually really need to run the city versus um I know you've got to have some reserves. I understand all that, but we can't keep taking more off of the taxpayers. and we're not listening to the taxpayers

now. So, I would respectfully ask you to keep doing the no new revenue rate, please.

There's no more comments. I'll move to close the hearing. made a motion second. All in favor say I same sign carries. Moving to item six, consideration upon the first reading of ordinance 2025-09-01 setting the proposed tax rate to be the nonrenewed tax rate of.529139 per $100 valuation of each assessment to be based upon 100% of its appraised value. question. If we do the no new revenue tax rate we have budgeted right now, what happens to things that we don't have budgeted that might come up? Have the money to make unbudgeted repairs, whatever. We never know what's going to come up. So, I guess that's that's a difficult answer. We don't know what those costs necessarily are. But ultimately, I mean, I would like to say yes. The directors we always work through and and you know, from a maintenance standpoint,

um any, you know, emergencies, things that pop up. Um, our folks do a good job of making sure that they have a little, you know, I don't want to say cushion. I would say it's going to be more basically it's built in on on what the the maintenance items are going to be and what the best cost they believe will be on potential emergency fixes. But you never know what those things are, especially when it comes into utilities and you know water, sewer. Those those become large expenses. But that's a different part of the budget. But from this rate, yeah, I think I mean in the end we we'll be we'll be fine. It's just you're not able to move the the reserve back up. That was the that was the main piece. No change in service. I think we'd be just fine in this at this rate, you know, at this point. Sure. open a second public hearing on proposed 2025 2026 budget. Okay, council. Um, same thing here. This is the the second public hearing on the budget itself. There's been no changes since last um last meeting. So, same Same there. This is the public hearing for for um comments or questions. Consideration of possible actions upon closing the public hearing.

A second. Second. All in favor say I. Any oppos? Item number 10, consideration and possible actions to cancel September 16th. Just jumping right ahead there. All righty. Number nine. Check. Consideration upon the first reading of ordinance 2025-09-02 on the proposed budget for the 2025 2026 fiscal year. Consideration and possible actions uh cancel the September 16th council meeting. Oh, same sign.

It is six. We will now convene into executive session at 604 635

634. Amen.