City Council - Special Meeting

All right, at 6 o'clock p.m. I'm call I'm going to call the meeting to order. Please rise to the invocation and pledge of allegiance. Please bow your heads. Dear heavenly father, thank you for the many blessings you have bestowed upon Keen. Continue to watch over our first responders and keep them safe. Be with us tonight as we gather for this council meeting. Guide our decisions for the good of our community and help us work together in unity. In your name we pray. Amen.

Amen. I pledge allegiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. And now the Texas flag. Honor the flag. I aliance to thee, Texas. One state one and indivisible.

Y'all may be seated. This is a special called council meeting. It's September 25, 2025. I did not receive any yellow cards for public comments. And I do not have any announcements tonight. Council, do you have any announcements that you would like to make? There was there was one announcement that Paul made today at the lunchon about the national night out and I don't know if we're going to have a council meeting. I think it was it October 7th. October 7th. So I don't know that was probably worth mentioning.

Okay. October 7th national night out here at city hall. What time? Okay. 6:00 to 8. Okay. 6:00 to 8:00 p.m. We did have some marshales visiting us this week and that's why the flags are up in Keen. So if you see them then it's nice to make them feel welcome. Um we did make some changes to the proclamation that I issued them from a couple weeks ago and added a few dignitaries names and stuff and Miss Russell was very nice to do that for me this week and we gave that to them and presented as well. So that did take place. There will also be a um kickoff ceremony tomorrow morning at the Duck Pond Pavilion. Oh, okay. At 10:00 a.m. 9:00 a.m. at the duck pond. 10 a.m. 10 a.m.

10 a.m. at the duck pond. Okay. Um for the uh the marshales kind of the their big celebration and they're it's a whole thing. They're cultural cultural. Yeah. They're and there's a partnership with their chamber and and our chamber and their tourism and they're carving a canoe and they might put it on the duck pond. So, it's a um there's a lot going on this this weekend with with them. So, neat. I saw their flags, too. Those are kind of cool that they put up.

All right. So, I did not receive any yellow cards. Anybody here from the public that would like to speak that did not turn in a yellow card? Okay. We do not have any reports for agenda item number four. We do not have any public hearings for agenda item number five. So, we do not have a consent agenda for agenda item number six. Moving on to agenda item number seven, discuss and take action on an ordinance levying taxes and adopting the city's 2025 tax rate for all taxable property for the 2025 tax year at the rate of.828978 828978 per $100 assessed value on all taxable property within the corporate limits of the city of Keen as determined by the Johnson County Appraisal District. All right. So council, just to brief you, we met uh last and discussed our tax rate on September 18, 2025, at which time council set the ceiling to be this rate that I just read off, which is the point um 8265878. Um we did discuss that that was the high and a ceiling is there and meant to give us some wiggle room. So, if we would like to adopt a lower rate, this would be that opportunity that we could do that or council could elect to vote this high rate, the ceiling rate that we previously discussed.

I'm sorry. Why would a lower rate? this would be the time that we could we can't go higher than that rate but we can go lower than that rate today. So we did get our budget approved and we did have some extra monies in it. It did accomplish I think what we set out to do. It has the fleet enterprise plan in it. It has the six new hires in it. So at this time if we wanted to lower the tax rate and go to the no new revenue rate which is 816257 we actually could adopt that tonight. Or we could if we wanted to enact a t tax cut, we could go even lower than that. I move the question.

Okay. What is your question? Okay. Let's do this. I want to call the question. Okay. Okay. So, you want to call the question to go ahead and end the debate. We haven't even started it. Speaking up. Let's go. All right. Do we have a second to end debate? Second. All right, then. Council, I need a motion. Well, it says in my packet, you got to say something to us first.

Okay. All right. In your packet is ordinance number 2025-689 of the city of Keen approving and adopting the city's tax rate for tax year 2025. So at this time I'll have the city secretary read the caption of the ordinance. Ordinance number 2025-689, an ordinance of the city council of the city of Keen, Texas, approving the 2025 certified property tax roles and adopting an adalorum tax rate of 828978 and levying a tax upon all property subject to taxation within the city of Keen, Texas for the 2025 tax year for the use and support of the municipal government of the city of Keen. for the fiscal year beginning October 1st, 2025 and ending on September 30th, 2026. aortioning said levy among the various funds and items for which revenue must be raised, including providing a syncing fund for the returnment of the bonded debt of the city, providing for the incorporation of premises, providing application of taxes collectible, providing for severability and repealer, and establishing an effective date. All right. Since the ordinance will adopt a tax rate that will exceed the no new revenue tax rate, do I have a motion?

Hey, can I just make a clarification question on the motion? Okay,

so the motion in the packet says, I move that the property tax rate be increased by the adoption of the tax rate 0.828978, 828978 which is effectively a 3.5% increase in the tax rate. That's not the is I understand it. Am I wrong? It it's it's governed by the way the state it's we're basically saying mandating the state mandates that we say it this way. That's that's the part where I think it's important for council to educate the community because we're actually decreasing their taxes. Um

the tax rate is going down. The increase is coming from growth in the city. Um and and it's not because we're increasing their taxes and and the fact that property values did not go up because they're frozen for the next three years. We can't use that argument. So, it's unfortunately because literally after not looking at this for a week, I started getting confused again, too. So, I just got off the phone with the attorney and it's this is a mandated how the state tells us we have to state it. The reality is is tax their taxes are going down and this is the lowest the tax rate has been in 10 years.

So, I have a I have a a statement as well. Um, mayor, you were wanting to reduce the taxes from where they are set now and we did our budget based on those taxes. Is that correct? Well, typically we we set the ceiling and then we work on the budget and we adopt the budget and then we come back and set the tax rate. So, if we change the tax rate now and then all they have to do is just amend the budget to match, right? That we have to amend the budget that we worked on and Yeah. And that happens. No, we can't do that. Tonight was a night. Yeah, we're not here to amend the budget, but I'm saying they would then base the new budget off of the tax rate that you guys adopt. No, it's got to go back to square one. We do.

It would have to be back to square one. You'd have to reapprove the budget. Yeah. And there's a time limit on getting this done, is there not? September 30th. Yes. Yeah. At the last meeting when you wanted to discuss the 0.92 as the tax ceiling, you said that's not the tax rate that I necessarily want us to adopt. That's just the ceiling that's going to set the high so that we have wiggle room in case we need to go that far. Now you're telling me the ceiling is the tax rate. Is that right? Well, if you remember, right, I was outvoted. So the ceiling is the tax rate, but it doesn't have to be. That's what I'm saying. It doesn't have to be the tax rate. I'm not going to make my city staff go back and redo the budget. That's ridiculous.

All they have to do is just make a few adjustments and whatever the net is. It's just it's not going to affect then we got to come back and have all this start all over again. We've got a nice surplus in our budget. I think everybody got what they wanted. I'm going to go ahead and say I'm going to read the motion. So, I move that the Hold on. First off, I need a motion and then I need a second. I'm making it. Okay. I'll second that motion. I haven't made it yet. Y'all just calm down. Okay. Done.

So, mayor, I'd like to move that the property tax rate be increased in quotes by the adoption of the tax rate 0.828978, which is effectively a 3.5% increase in the tax rate as set forth in ordinance number 2025-689. Okay. Do I have a second? Second. Okay. All right. Now, it says mayor is supposed to ask for discussion on the tax rate and the ordinance. Is there any discussion that we would like to have now? Okay. Mayor, um, is there a problem? Councilman Smith, go ahead.

It literally says in here, mayor to ask for discussion on the tax rate and ordinance right here in red in my packet approved by the city attorney. So, that's what we're doing, the next step, following through with procedure. Go ahead, Mr. Goodwa.

Yes, mayor. So, I've I've spoken to some of these uh taxpayers um and I know we we keep discussing about this every year, but I'll just be very brief and then we can go ahead and vote. So, we have one of these taxpayer a very good example. 275 acres. That's a C re if my pronunciation might be wrong. So, we go back to when uh we had Chaplain as the mayor 2018. This homeowner paid $2,800 8245. The city made 3.75% more than they made last the previous year and the city was able to make more money on that year from this taxpayer by $70,000 656 which means they paid more that year to bring that total to a reasonable amount. We go to 2019. They paid $2,764.39. The city made 140 thou 146,360 which was 7.4% increase that the city made than the previous year. We go to 2020, the same taxpayer, the same small space of our property, they paid 3,000 16 U.01

1 cents and this one was an increase to the city on that year by 8.52% and the city made from the same taxpayers and other taxpayers from the property 180,152 thou uh $152. Then we go to 2021. The same same piece of property 3,000 and $2440. Which means that year we went up by 4.3% and the city was able to make more money than the last year that they made the previous year by $99,667 which means it went up. We go to 2021 they paid $3,240. So 4.3% that's uh 99,667. 2022 $3,033 uh62 which went up by 4 4.75%. The city made more money on that year than the previous year by 113,811. We go to 2023 just a few just a few years ago. This is where it gets interesting. The same same piece of property. 275 this taxpayer paid 6,596 thou uh59

which means that year the city made 15.06 06% more than the previous year. And how much did the city make? 346,657. We go to 2024. The same same.275 acres. They met they paid this taxpayer paid 6,298.3 cents which means the taxes went up in Keen by 9.1% and the city made more money that year from the taxpayers than the previous year by 240,20 uh dollars. We go to 2025 went up by 10%. And the city made more money on that year than the previous year by 290 thou 299,620.

What is the amount for 25 29 299,000? No, the amount of the amount of taxes paid on that property. You listed it off the last six of them, but you didn't list off that one. The previous year was 6,298. What's 25? Okay. The the main thing we get I need the number. It's in the range of 6,000. Oh, you don't have the exact number. I don't have the exact number, but you are getting the point. They started by paying the city. Also, okay.

In your questions, you you listed off that that the city made that much more money off that property or all properties? That's this that's what the city made from the propert the the taxpayers that year. Okay. So you're talking one property then your last reference you're averaging every property. I'm showing you how it's a great man argument.

Okay. I'm just trying to tell you I'm showing you how some of these we normally say $20. We normally say oh it's just a cup of tea. It's not a cup of tea. uh they are paying they started paying 2,800 now they are paying 6,000 almost 300,000 uh $300. One one you left out of it is what the is the value of their home. What did the tax what did the county tax appraiser appraised it at? Right. What did the tax appraisal at? Because that that wasn't mentioned in any of this calculation in 19 was that house say the property okay valued at 110,000 and in 25 it is valued at 310,000.

The point is here. The point is here you can say oh the property went up. It's not our problem. This is where the problem is. The rate you are deciding tonight will determine how much this taxpayer is going to pay next year and everybody else and everybody else which is okaycluded which is okay but they are not happy about it because every year Okay.

I'm not happy about raising taxes. I'm not happy about the price of gas. I'm not happy about the price of groceries. I'm not happy about the price. I'm not happy about the price of home insurance. I'm not happy about the price of everything, but the price the city has to pay to make to function keeps going up, too. We can do two things. We can cut the tax rate to nothing, and we can fold our close our doors and lock them. I haven't suggested that. What I'm trying to tell you, we might not see there's a disconnect. We might not understand what is going on out there. And we're just saying we need Mr. Stop interrupting.

I will interrupt as much as I need to. So basically, let me finish. So the the issue here, we keep saying, "Oh, the rate is going down." Mr. Easley, stop interrupting or I will call a recess. Go ahead. So standing. All right. We're calling a recess. Meeting is adjourned. It's 6:19 p.m. You can't adjourn it because there's a motion on the floor. Yes, I can. I can call a recess anytime. According to our rules, you said meeting adjourned though. receiving a warning from the mayor the person continues to disturb the meeting or breach the peace and good order of the meeting the mayor may re may recess the meeting or order the person to leave the meeting I don't think you can when we're doing got a motion on the floor though mayor I think you need to double check that just double check it is all I'm saying we are at recess

well since we're at recess then let me ask Mr. Gw a question is that the total tax bill of that person or is that just the city tax code meeting after the meeting we're at recess I don't believe Mr. Goodwill has to follow orders from the mayor. He turns into a

mute. The meeting is at recess. We're not discussing Motion on the floor.

Call the meeting back to order at 6. Okay. What time? We'll call council back to order at 6:21. Sorry for the interruption, folks. Uh does anyone want to make a motion regarding the uh tax rate? I move that we adopt the tax rate at the trade icon. Sorry, the motion is still active. Your motion. Oh, is it your motion? There you go. It's okay. It's been made and seconded. Um, just to pass, we need a 60%, you know, a vote or

and I can vote because I'm the mayor of Pro Tim at this point. You are a council member who may Yes. Okay. So, I'm going to call for a a this is a record vote. Okay. So, I'm going to go and you must state either I vote for the proposed tax rate of 0.828978 as set forth in ordinance ordinance number 2025-689 or I vote against the proposed tax rate of 0.828978 828978 as set forth in ordinance number 2025-689. So Mayor Parish

not present is not present not voting. Bob Chapman I vote for the proposed tax rate of 0.828978 set forth in the ordinance number 2025-689. Say it again with your mic on. Your mic on. Do it again. I vote for the proposed rate of 0.828978 is set forth in the ordinance number 2025689. Yes. Thank you, sir. Uh, Councilman Easley,

I vote against the proposed tax rate of 828978 as for set forth in the ordinance 025 2025 689. I'm Rob Foster and I vote for the proposed tax rate of 0.828978. I set forth an ordinance number 2025-689. Councilman Gutwa is not present. Correct. Uh Councilman Shaw,

I vote for the proposed tax rate of 8.828978 828978 as set forth in ordinance number 2025689. Yes. And Councilman Smith, I vote for the proposed tax rate of 0.828978 as set forth in ordinance number 2025689.

It's not unanimous, but is passed 4 to one. Now, we need to consider rescheduling our October 2nd council meeting. Any discussion on that? Um, go ahead. I think we kind of somewhat talked about this last time. I I'd like to see us just not having that October 2 meeting and uh giving city council, city managers, staff some time to u get their their month going in the other direction. positive direction. Yeah,

I I would appreciate it. We've we've been working hard and I know there's other things we need to accomplish, but you know, now we've kind of pivoted and you know, we're still wrapping up IRS audit and well, actually in the middle of that and anyway, there's just a lot going on and we are starting to shift um to answer some of these questions, but we're just not ready and I don't want to have a meeting if I don't feel like we're ready to present some solutions to some of the issues you've brought before us. Would that be the the ninth for the 60 the 6th. Well, November 6th. We We were kind of thinking just skip October. Yeah. Reconvene. I think we're skipping the meeting entirely until the next month. Is that correct? Yeah.

That's Is that a holiday? How's everybody feel about that? Isn't that the November 9th? No, November 6th. Oh, or do they Is it November 11th? That's the uh Yeah. Is that Am I messing that up? It's always on a Veterans Day is the 11th. Okay. Okay. Yeah. I think we've accomplished a lot. And if we need to, Jonathan can let us know and he can post one if we if something comes up that needs to be immediate attention, but other than that, yeah, go for it.

I I would appreciate it. And there there are a lot of again good things that I'm hoping to be able as early as next next week to start reporting. So good things are happen for the community and and um so I and I do want to applaud council for um being so great to work with during this entire process, especially this being my first my first time. So um I think it'll just get better and better. I'd like to see us pencil one in for the third weekend as a tentative just so we can the 16th the the yeah the third week of October just so we can earmark if we have to need business we need to deal with we can we need to cancel it so be it. 16th 16th I think of October 16th and just cancel it if you need to.

Okay. That way we can see why. Yeah. I like to see why. Yes. Okay. Well, all in favor we're good with that. Yep. So 16th on October November 6 for our next actual regular meeting. Yes. Amen. I'm okay with that. We actually make a motion. I didn't see that. Or is it just discussion? Just discuss just attend just a possible like if leave it on our calendars but we like so we don't put anything else in that date. But

how much advance does everybody get to to know? Well, the Monday before she'll have to provide us with the uh agenda. 72 hours. It's got to be posted. We would actually probably know by the Friday before because that's when you need to Yes. It's actually the legislation changed that you know you get your packets on Friday. It is actually three business days. So it's actually a week. So that Friday is posting day now. Okay. Um there's no weekend wiggle room anymore. So Friday is posting day. So you'll know a week in advance at least. Okay. So, uh, any requests for future agenda items? I know we've got a list here in front of us.

We We have a heck of a list. Yeah, I I I don't have anything. I'm I'm actually excited to check off all these items before we try to put more on there. I think we I think it's loaded up. It would be a burden if we tried to add some more right now. We're going to be here for hours. Yeah. Well, that being said, do I hear a motion to adjurnn? Motion to adjurnn. Second. Second. All in favor? Opposed? It is passed. Meeting is adjourned time.

Thanks. Thank you for coming and thank you for staying.