City Council - workshop

Good evening and welcome to the City of Montgomery City Council Workshop meeting for July 13th, 2026 at 6 p.m. We are here to discuss budget items. I'd like to call this meeting to order. We have a quorum. Will you please rise so that we can have the invocation given by Mr. Standoff. So that'd be great.

Heavenly Father, we thank you for this day. We thank you, Father, that this is an opportunity for us, Father, to show progress in the city of Montgomery, Father. We thank you, Father, that the funds are available, Father. You supply all of our needs. According to your riches in glory, our Christ Jesus, we thank you, Lord, that our city grows and prospers, Father, in all we put our hands to do. In Jesus' mighty name, amen. Amen.

I pledge allegiance to the United States flag.

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.

Now the Texas flag. Honor the Texas flag.

I pledge allegiance to thee, Texas, one state, under God, one and indivisible.

Perfect.

I did not receive anything for citizens' comments, so we'll move right along to the workshop agenda. Item number five on your agenda. Discussion regarding FY2027 Annual Budget by Fund and Department. Ms. Marie.

We should all have a packet that looks like this in my view. As you know this is still a work in progress. We have all department heads, I have met with all department heads, met with and in conjunction with Mr. Walker and gone over these items that are included in this proposal this evening. A couple of things that I want to note right from the start. This budget does currently have a 3% cost of living adjustment in the wages line. There is a merit pool in keeping with what we've done in the past, the 5% merit. We've currently got it funded at 80%. And the reason that it's funded at 80% instead of 75% is from a budgeting perspective to bring that number into the personnel platform that we're using, it's difficult to do the 5% at 75%. So it throws it off. I can work on that some more. I'm not totally set on what we have in there, but that's essentially what we're running into tonight is 5% funded at 4%, so the effective, or funded at 80%, so the effective is 4%, right? An idea that some might get more, some might get less. This does have an 8% increase in our health insurance. That is an estimate. How much? 8%.

I thought you said 80.

No, 8%. We will have that number at the very end of August, beginning of September. So if something goes certainly crazy with that, we will have that number for the adopted budget the middle of September. So if we had to make a change from the proposed that's put out in August to the actual adopted. We can do that at that time. And that's health insurance? Health insurance, yes. Thank you. And the 8% is what you've done to by TML? So the average rate right now, rate increase with TML is 11%. There are groups, of course, higher than that, groups lower than that. Based on our current utilization over the past year and previous year, it's reasonable for us to believe that we will be below that 11% mark. We're also seeing an increase, you may recall, we have added that benefit of next level, which is the enhanced feature where it allows our employees to go to next level urgent care as a prime member and be seen at no charge. And so because we have that, our claims have come way down, because people are utilizing the next level piece. And so that's very beneficial for us. Our TMS rate, TMRS rate, did increase for this next year to continue to fund the retirement pool, basically, for the city. That increase is a 2.89% increase on the employers side. So that is calculated in here. The other thing that's calculated in here is the TML IRP, or risk, right? Your liability, property, all of those lines. Overall, we've had a 2% decrease in that coverage. It is unusual, right? There was a... a decrease in our workers' compensation, which that's not reflected in this budget whole, okay? So I still need to tweak that a little bit. And the reason for that is the police officer rate came down slightly, right? So they're the highest group on our workers' compensation. their rate has come down slightly. We also get a 20% discount experience modifier and then a 20% pool discount. So I need to build that into that rate because right now what you're seeing in here is the full rate minus or excluding those discounts. So when we bring this back to it, we'll have that discounted. All right. Any other... When did the new city hall go on? It was put on policy this year. We had a rate adjustment for that building this year.

I don't remember the exact... How many kids occupied

that will change and the value of the building will likely change. So right now it is just a big building. Yes. All right.

What's that? Unemployment is out of our control.

Right. Did we bring that many employees on and our unemployment more than doubled?

So the way that that unemployment number comes, that's our rate from the state. We fall into a group of municipal governments. It's not individualized to us and our claims. We are in a big pool based on the nature of our business. And that rate went up just last year. So it looks like a giant percentage in there, but it's really not huge.

It's not a larger problem? No. No, but I'm like, why is it overall under 180%?

We were at the lowest rate forever. Government employees or government entities were at an extremely low rate. But that increased. And you have to remember this is on, it's a percentage on the first $9,000 in compensation.

And then you said 8% on the health insurance, right? But I'm seeing 28% repeated.

Part of the reason that you see that difference on those sheets has to do with the elected coverage, right? So as an employee, if you choose to elect dependent coverage, whether it be for your spouse, your children, or your family as a whole, the city pays a portion of that. So when you're seeing that change over last year, what was budgeted, it's bringing that into account because this budget is based on what people are currently enrolled in. So last year, if we had somebody who was only enrolled as an employee at the time that we adopted the budget, But come January 1st, they had a change in their situation. Maybe they got married.

Maybe they have children. Maybe they've brought everybody over to their plan.

That increases the employer's contribution. So we can't just plug it in and say a flat 8% overall because it's based on current usage of the insurance. So that's why that number looks a little funky based on what what people currently have as their coverage.

I'm just seeing. So in admin, we're at $80,000 increase. In police, we're at $120,000. Or no, it's $90,000 increase.

On admin, it's a $30,000 increase. So you need to look at the column that says a max FY26 adopted.

That's still significant, right?

So again, some of that is going to come into play with what your people that are on your plan have elected. I will let you know that there is an employee who was not in, that did not have coverage under, wasn't here, right? Didn't have coverage. You also have a, you also may have had somebody else who changed coverage during the year, so that increases that. So the premium itself has gone up 8%.

Okay, but the total cost because of the issue. Okay, I think that's the confusion, which I was thinking the same thing.

Yeah, that's one of those that's hard to be able to to bring it to you and say it's an 8% increase because there are just too many other variables. It's based on who's enrolled.

The base cost went up 8%, but you're adding more to people to cover. Correct.

For dependents and so on. Yeah, yeah. And then the wages, I know you've got the 3% and the 5% figure in there. That still doesn't add quite to what the difference is. So is there an added employee that... Where are you looking? Wages for admin.

So there is, you have a, I have to remember, the administrative, the assistant director for MEDC comes out of admin.

And staff had asked for an IT position. Is that in this wages? It is not currently in there.

I haven't got that for you. We're still pricing out, you know, one versus the other. Do you have an estimated budget for that position already in mind or is that? I mean, I understand they can be expensive, but is there... Yeah, well, actually the hope was more of a... Let's call it a technical manager, not really an IT full-blown because the third party that we do use is really our IT. So we just really need somebody to help us manage it all from here and install computers here. So it's kind of a hybrid. But, you know, $80,000, $90,000 is... where we're at, at least at this point. And that's why we're comparing it to if we just have a person come in from contract and go two or three days, what kind of does that look like? And then does that fit what we really need? A lot of the technology, at least currently, I mean, of course, when we moved to a new building, there's gonna be a lot, but the police department is a high user of all kinds of technology. And that's the place that we're really trying to fill that need.

And then one more. I see the election fund went up again. Did the county chart, did the rate go up again?

So we can actually bring that back down to $40,000. We found out early last week that we may have needed a... special election that was confirmed just before 5 o'clock today that will not be necessary. It had to do with mixed beverage tax and finding where there's a whole at one point

What's that? There's going to be a special election about a misbeverage tax that's been taken. Oh, okay.

We were included. Ruby, can you explain? We were included in an election from 1903 with the county of the precinct one.

We had to go back and research to make sure that we were incorporated. If not, then we had to prove that we had an election.

The city had not had one independently, but it was covered under the precinct one.

Right, and we're gonna move it back to the forum.

Which is still, this is cost saving. Going to three or four year terms instead of keeping it where we are now. It needs to be four. Yeah.

It just has to be written better. So that would be the... That is the... But anyways, we'll type it in. I have a question.

The other thing I will mention is I talked a little bit about it at the last workshop about looking at breaking out the property liability, those insurances and assigning it according to department based on either dependent on which coverage it is, ownership of properties, ownership of vehicles, value of vehicles, value of property, number of employees, all of that. We talked a little bit about that last year when we talked about that crime insurance. So you're seeing that reflected. So some departments are higher because we made adjustments in order to allocate it to the department that seems to fit the idea. So where you'll see one of the biggest savings, of course, is under court, right? Like they have a small corner of the building. There are three people. So their rates, their cost of those coverages have come down because they don't, So that is one area where you will see some percentages that look a little crazy. That's why.

No, it's based on how it was being allocated before. So when that bill came in,

for the property insurance, it was divided, a vast majority was assigned to water and sewer, right? Because a lot of the infrastructure belongs to water and sewer, right? So a higher portion was put over to water and sewer. Then the remainder of that was like divided by four. And so court paid 25%, PD paid 25%, admin pay 25% and public works pay 25%. Well, admin and PD and court probably shouldn't all have the same percentage, right? Like court's percentage should be less than 25%. The way that we looked at that and saying they occupy a portion of the building, have three employees, their ownership in that their contribution to those entrances should be more equitably spread out.

Marianne, question. So the general fund for the police overtime is 60,000 for 20, but I thought that in part CCPD was going to pay for

So that $60,000 is the same number that we've been budgeting for the last couple of years. I just thought it was coming from their bucket and not the general budget. We did not make a decision last year to pay for overtime out of CCP. I have not had that discussion. That has not been part of the discussion for this next year?

No. I have several questions about the police, but But I want to see the CCPD budget.

So CCPD budget is going to be brought to them at the end of this month. They have not had a meeting. They will not have a meeting until the end of July to be able to see their budget and offer it up as proposed.

But that doesn't give us the kind of time for us to look at and approve it. Understood. There will be one more workshop before that. Yeah. I want to be able to look at what we're getting on admin versus what's on the CCPD.

We tried to have a meeting in June, but it was difficult to be able to pull everybody together to be able to have that meeting. So their quarterly meeting is the last one day of July.

Yeah. They may need a special meeting because it is budget season. They need a budget.

If we need to add another workshop, a budget workshop for y'all, we can- No, I don't need one.

I need theirs.

No, I understand that. But that's if we had things that we needed to address on their budget, we could do that at that time.

Are you looking to just go on the CCPD budget?

Yeah, I wanna see. I wanna see what's compared. I wanna see what's being picked up on the CCPD versus what's being left with us.

Okay, we talked about that a little bit in that last meeting, that we did not, we did not add anything back to the general fund. We actually took that $100,000 out for three-foot farm last year, and we took that $100,000 out. It came back to a 76. We put 76 in there that came from CCBD. but it didn't come from CCPD, but we added the 76 because we took the 100 out. And that 76 was for the following, $76,000 went for, 18,000 was for body cams, 7,000 was for branches, the dash cam for 43,000, and Spillmore, our reporting system, was the number 7,000, where that $100,000 was taken out. But I'll give you all of that, the whole budget, and that way you'll be able to see it. I want to see what the actual budget is. Okay.

But I still want to see.

Are you wanting another?

I mean, he could email us all. Yeah. It doesn't matter to me. I just want to be able to compare. I'm assuming if you wanted another meeting called or if you wanted to. Well, we have to have another meeting called just to approve their budgets.

And that's where the difficulty comes in because it's difficult to be able to give you even the NEDC budget, the CCPD budget, without those boards having seen what is being...

That's why I said if it takes a special meeting, then that's what it takes. It's budget season. I don't even know how many MEDC special meetings we've had in the last six months, but it's a bunch.

Any other questions?

Any questions about the police? Does anybody else have any questions about the police?

Or for that matter, about an ad that everybody did with what was on ad?

Where's WGBA over here? It's not on WGBA. So you're going to see that on the next department we come to, the eighth of your packet. Okay. So engineering gets divided up into a few places, right? You're going to see some in public works. You'll see some under water and sewer. And then there are items that are directly billed to escrow accounts. So those are not a part of our operating budget, but when you see their... When you see engineering, that's anything that's related to the city's functions. Some of it's in public works and some of it's in water. And then the same question, like, did we add personnel? One of the things that impacts the wages line as well is your certification pay and education pay. So when you have somebody who gets an additional degree or an additional certification, that does impact those wage lines. It's not huge, but there is a portion of it raised as well. One of the things that I wanted to point out on here is under general park maintenance on page eight, we increased that from 100,000 to 136,000. And the reason for that is to encompass the Christmas light contract, putting that underneath public works and parks.

I'm sorry. Is it under that?

It was actually in the quality of life events line. That's where this last year when they approved the contract, that was where the expenditure came from.

It kind of coincided with that, but this year we broke it down here.

In exchange, you would have seen under the admin line, we did put the events under that admin line.

Under the admin department.

That's actually for adding the annex across the street. So we pay weekly for that cleaning as well. So that is an increase to encompass that cleaning price across the street. Cleaning price would go there as well, right? $10,000 more.

Do we need him twice a week?

Can't believe y'all dirty over there.

At the very least, just to pull trash. I can throw my own trash. I can do that.

Are we cleaning the whole building?

No, that's just my space.

Yeah. I don't know what the breakout is, do you? We need to revisit with our cleaning company and say, I don't know.

Because I'm assuming that that adopted 13,000. Mike, is that your office here and just here? So 13,000 just right here. And then that's 21,000 for here and there.

And that's not a secure location, right?

They don't have to be in the same kind of secure... Right. Like with the police department? Being in the same building? Is that right? No. Or maybe just bringing in Mary Baines. Right? Or whoever. I mean, is it over $25,000 per feet?

Uh-uh. No. Like $1,800, isn't it? Yeah, $1,800.

I mean, you can get...

I might want to read that.

Yeah.

I'll do it. Actually, just roll it over. I got it. I do think there's only, from what I've seen, I do think there's only one full claim being done a week. I do think there's only one full claim.

I think it actually is once a week over there.

And it is $150 a week.

Let's do it.

She runs the street once a week.

Okay, I was about to say she comes to us twice.

She doesn't touch the desk and she just swiped on the floor and got out of the church.

She does a good job.

She does. I just was...

I talk about this building. My impression of this building is understandable. $8,000 for 1,500 square feet is a lot. Yeah, that's okay.

Yeah, the price for this building is acceptable. It's the $8,000 increase to the other building.

The other thing is, too, you know, they have a lot to try to go through like this building does.

Right.

It's very minimal.

Very minimal. I just didn't feel right. Is that what mowing is?

Mowing is just what I took it to is the maximum that the contract could be.

Not to exceed.

Not to exceed. Okay. He rarely, I mean, well, rarely, he never gets to the full amount. Something's always missed or delayed because of rain or whatever. But just to be safe, if he was to hit 100% of everything. Yeah, I mean, she told me how much it would be per week. I just, I don't remember off the top of my head.

I think she's there every three hours. She shouldn't be.

She's not. She's there maybe 20, 30 minutes. Yeah, she's

We do split proceeds.

Both of them will be on there for a year? Yes. Both buildings will be on there?

So yes, we are paying, right now we have utilities over there. And we will continue to have utilities over there. So that's what that's covering. That's not including an increase of occupying the building.

I'm sure we should go back here. August they will bring the guarantee maximum prices list.

They'll meet your August budget meeting. They'll go over the price.

Right now everything has gone really smoothly. that to you August 10th. Shortly after August 10th, we should have the official guaranteed maximum price or at least the first version of that.

So far, the only problem we've had in this whole process of pre-construction, if you will, is the chests on the soil under that,

That's all Montgomery. It's that black gumbo.

I mean, I think if you got lucky, they got a rocky, whatever that is up there, clay and stuff.

But yeah, the problem is the second floor, because it's a concrete floor, the second floor, the way that that presses down. Also, the new area that's built on, or the PD is there, just for a foundation, it's likely it's just going to push it up, you know, since it's so wet under it. And so... They're considering bringing in the engineered dirt, you know, take out, bring in four foot of soil and bring in some mid-dirt and then pour a slab, which also costs money. But, you know, I mean, you've got to expect some of these problems. But we are moving. We're moving pretty good. And everything seems to be on schedule other than that one.

Since you are moving good, there was three people from over in Buffalo Springs specifically, and I understand why. It was because they drive by there all the time, and they wanted to know why we were doing absolutely nothing to that building. And I said, well, I think we're doing something. And they said, what? And I said, well, call Mr. Walker. He'll talk to you about it.

Well, construction itself, they're not going to touch the building because we're in pre-construction. The only thing we're doing is design. But that ends in August, so...

The suggested or timely timeline.

This was the suggested time frame.

this process and so they've been meeting with john back and forth back and forth you know they're trying to get all that and now they have all the interior designed out and they they're gonna bring samples and all that so you guys will look at it feel they've done a really cool job i must say i mean i mean i've just seen pieces of parts i think you'll be pleased to use them They really understood that the Texas flag is what we were or what we are. One of the cool things, this kind of a, whatever you call this up here, is a star.

It matches with what we've done on the South Block.

The star just keeps carrying. I think they're doing a pretty good job.

So they're going to have a conference ceiling over there also like this?

I don't know what you call it. Yeah, it's going to be... That's good for acoustic. Like this, but yeah, they're doing some acoustic wall behind the... Nice. Dyes as well. So, yeah, they're covering everything. From what I can tell, they're doing a really good job. I really like the company that they brought in for the interior. in a very interesting way. They of course use AI and everything else nowadays, but they did the experience as if you're an employee, as if you're this, as if you're a citizen coming in, what's your experience coming into this building, what can you see? Very cool.

I can't wait to virtually walk through.

Yeah, John's gonna bring it for the August 10th meeting. See, I'm interrupting your budget talk, sorry.

Did we add things to the community center?

It's not a big amount. So the air conditioning is running more over there. I think it's due in part to some of the leaks that are happening.

We do have an increased utility cost over there.

We weren't using the air conditioner last year?

Yes, but I don't know. The increased utilities of the community center.

Did we add anything?

We were definitely up.

No, we haven't added anything, but the building leaks like a sieve.

I mean, I think part of it may have been last year. It has been increasing, but we didn't notice it.

So the parking improvements I see is built in, and that includes the project that you presented the other day?

It does. So that one's $800,000. I mean, I'm sorry, that one is $719,000. And then that leaves me a little extra. We got a project in memory that we want to do. Stan actually came up to me before the meeting and said he had something he wanted to do on this subject. And I'd like for you to do it. here in the budget workshop about Homecoming Park?

Yeah. Well, I wanted to put a walkway around the park so people can walk around it and take their dogs and whatever. And that's a jet that goes across the rock. And Mike said that's a maintenance attic. He said the only way to do it right is to put it on a bridge. Can you use that instead of concrete, the concrete sidewalks are expensive. Can you use that concrete sidewalks? Yeah. Can you use it to do a basketball or a padded basketball? Can you do a pressure concrete?

Well, not a lot, but I mean, I've seen new facilities. Crazy question. What would like a turf, like a track, would that be cost effective?

I'd be completely guessing. I mean, I'd have to get some pricing on it. True track? Oh, that's what I'm talking about.

It's like pan and asphalt.

Yeah, like a race track.

Shred the tires, whatever they do.

The only thing I'll say to that, just without knowing... a whole lot about it. There's definitely still maintenance involved with that type of product. Just like a poured in place over a regular concrete. I mean, it's, you know, unless it breaks, there's really not a whole lot of maintenance other than pressure washing it once a year. So it may be a little bit more capital. It may not though. I mean, that artificial stuff can get expensive. I just, I don't know the pricing. I'd be completely guessing. And then, So, I mean, you might want to tell them what you were talking about. You were talking about cedar break, too. Tell them your thoughts on cedar break as well, just because it affects the overall number.

Well, yeah, cedar break, I've got more thoughts about it. First of all, I don't want it to look like a corner. I like the fact that when you drive by it, you see it gray and it looks pretty. And I don't perceive in my thoughts, if you put a lot of color... playground equipment there, it just doesn't make it look that attractive. And I don't want to take up any space for a pickleball court.

A pickleball court is something that a lot of people have asked for.

The volleyball court is there. I mean, that's the maintenance with the sand.

Why can't we get the county to do that? They don't own it.

They don't own it.

It's up to us. They don't own the parks, Dan. That's city property.

I'm talking about putting it at the county park instead. I'm definitely talking about getting the county to do it.

Yeah, I agree.

There are a lot of people. So one idea, I'm just throwing out one idea. Other than that, I don't like keeping it here. Where the current volleyball court is, that's where we were proposing the workout equipment. We could look at doing, if you'd rather have a pickleball court over workout equipment, we could do the pickleball court over the volleyball court that's under the trees to leave that area out there that you're talking about more open. Just keep in mind that the plan that I brought was kind of a I was asking for everything. I knew that. If y'all wanted to scale it back, that'd be completely fine. Colors, don't worry about colors because that was not. That was just a drawing. I told them, give me whatever colors you want because I'm not necessarily prepared.

But for the green space that you're talking about where the volleyball court is, it would really make not a lot of difference if it was a pickleball court versus where the volleyball court is right now. Yeah, it's the same footprint almost.

Yeah, well, the plan that was brought was putting workout equipment where the volleyball court is and then a pickleball court would be over by the pavilion in that grass area. And that's what Stan is saying. He doesn't want to see all the grass real estate space.

I think it would be good where the volleyball court is right now.

Yeah, or can we just shift everything so it's towards the back of the park?

Well, I just like it because, like, there's no kids playing around over there where the volleyball court is. It's away from the kids because people may not be pickleball players. They might be hitting it pretty hard, and people get hit in the eye, and we don't even get sued for that. So it's on the whole area.

Right. Some people have a hard time with the police. Yes.

Yeah.

So I would like to leave it in the way. We want to pull it back out.

Once we see the concept, we can move the pieces around and decide.

Yeah, that's great. I might agree with that.

Yeah, and just consider if you want to add some more to go ahead and do the sidewalks. That's something that, you know, knowing how much we have left over, that's something that y'all can, you know, y'all can decide. Or we can go ahead and pull something out and see your break and do the sidewalks. just know that this was a big year at cedar break and my plan was next year to go back to homecoming to try to do a little bit more so even if we can't do it this year i was going to bring it back the following year try to get back over there since i'm not uh in that general areas like i am with the cedar break farm how much traffic during the school year does how many parks

It gets traffic. I've seen people use it. I think it's used.

I think it's used.

Well, hopefully we'll get some feedback because it is designated as a national demonstration site. So we've got the QR code out there for research. And they can scan and tell us Cedar Break will be the same way. I actually just received an email yesterday saying that we were awarded the national designation spot for Cedar Break. So we'll get that extra funding. Good. Good job. Well, I'll tell you what.

You guys, I think that you did a great job on this.

It's looking good. We're not completely done this year. Yeah, it looks great. So we've got a drinking fountain going in there, an in-seater break, and some bottles here. And then it's redoing the electric, putting the electric underground.

What is the designation for?

So it's designated as a national... It's a demonstration. Yeah, a national demonstration site. So the park is designed to promote physical activity. There are seven different aspects of the park and road. Trails, all different. But that one was physical activity. When someone comes and visits the park, there's a plaque out there. They can scan the QR code and it will ask them about their visit. It'll even go into asking them... What they did before they got there or maybe where they're going after. Are you going to get something to eat afterwards? Are you going into town to shop? And they'll give us printouts of this.

Who gets that data?

Does it go to them? It comes to us. It doesn't come straight to us. It goes to their database and then they send it to us.

And they send it to you yearly, monthly, each trip?

I think it's twice a year. No, no, no, no.

If I go to a Kroger or city. So that one was changed. There's a change. Okay. Did I miss that change? Did I miss that meeting? Yep. All right. Fine. Bigger and better. Bigger and better.

It costs money. It costs money.

It costs money.

It's going good. Yeah, it's pretty smooth. We've got two of the trucks that burn an unusual amount of oil from brand new trucks, but we're working with them on that. So that doesn't... Well, we took one of them to Wiesner to have them do... They had to do an oil change, and then they want to monitor it every thousand miles. It's not costing us anything extra, but they are... I don't know what they're going to do with it. They may give us a couple of quarts of oil and say, just add it to it every once in a while. As long as it doesn't cost us, I'm fine with it. But, yeah, it's going well.

Absolutely.

Yeah, there's something about these three-quarter tons, these Chevy three-quarter tons. I'm reading online about it, too. They're burning oil. It's a Chevy.

All right. Page 11 is Quote.

I talked last time about the increase for prosecutor fees. So you see that on here. I can't really tell.

I don't know. I can't really notify as that in the last one. Yeah.

Yeah.

You know, going back to that unemployment insurance, we don't have any recourse because we're in the fleet. I mean, as far as...

So, no. That's mandated by the state. If you're an employer in the state of Texas, you get assessed a rate from workers' comp. And based on the nature of our business, that's... It's not based on our utilization. It's not based on our claims. It's based on the nature of our business in the field. And again, like on hers, it's $513. So that 171% looks redundant. But it's not a big amount. Because I want to reduce those differences. Any questions about the revenue status? We have the departments, the revenue. Of course, we're still working on that. We're still monitoring sales tax. We expect to have our property tax. We should have our numbers at the very, very end. I can't calculate until we get those certified values from the appraisal district and they're not obligated to do that until The impact piece that you see here are estimates that we got, the projections that we got from the MTA. That's an increase there. Of course, that's an in and out. So if the revenue comes in, there's an expense that transfers it over to the capital fund. So if we don't get it, we don't make the transfer. The water revenue, we went ahead. This one is a little bit harder to project for this next year because, remember, we had an increase in our rates. And so we're also still looking at this to see where we're at, where we're coming in. Water is one of those things, as Mike always says, kind of a guessing game because if you're looking at the weather, you're not going to have as much water revenue. So we've got that. And then the same is true on the sewer revenue side.

So in terms of maintenance, why does that increase so much?

That's the one we combined.

We combined it with utility projects, preventative maintenance.

Repair and maintenance. Yes. What Mike said.

Yeah. So we've essentially got two separate line items. One for repair and maintenance. One for preventative maintenance or utility projects. And we're just combining them into one line item. Repair and maintenance. Preventative maintenance falls under repair and maintenance. We've got several items that can go either way. So just combining it into one line item. Yeah, there was a little bit of an increase just for more facilities going online. But it's not the jump that you see.

Right, because if you look down four lines, you see where it's decreased by 99%. You see there was an increase for garbage pickup as well. There is two pieces of this. We'll be bringing to you, I think it's a tomorrow night's council meeting, the rate increase for heading into year three of the waste management contract. So that's included. And then we've got a slight increase for just additional for well not the last, but towards the bottom of page 16, transfer to debt service. So in looking at, remember when we took on this, the debt issuance for this year, that's gonna be supported by the water and sewer revenues. And we had talked about utilizing impact fees kind of as a step to get us to the increased revenue sustained in . So this, preliminarily, we're looking at adding $100,000 over this year's transfer to debt service. So it's 583 this year, we're looking at 683 for next year. And we might, just depending on what we see with our Revenue projections, that amount can always be increased if we need to do so. We are looking at utilizing impact fees. And when you see in the next round of workshop, there'll be the special revenue funds and the little one-offs like the debt service. We don't have a lot of control over that. It is our debt. We have to pay it.

And so that calculation comes from our Avalorum rates and then our...

tweak that number a little bit, but we'll see.

So help me understand, so about engineering, I just added all this, I know we paid a lot of money. What's that? Like the engineering, like I'm just looking to see if we're setting aside for engineering, and I found three spots I paid a lot of money on.

A lot of it's in the escrow.

In the escrow, okay.

Or we do have some in admin for some of the stuff they do right at the beginning before there's escrow and all that, so we have that too.

But most of it... Yeah, I'm just looking to see, because to me that's an indication of both, right? So if we're doing more of this piece go up...

So, I mean, our goal is to make sure we're spreading out as much as we can so that developers are carrying their costs. And so, like, these numbers don't include anything developer-related. They don't include any... Because that's truly just city. That's correct. So that's, you know, the meetings and the on-call and the ordinance items, anything like that. He never answers his phone, though. Right, right.

One of the things that we're working towards is implementing one of the modules that can code for project accounting. And that project accounting is going to be able to provide us with a report to give to council that will give you an idea of how much is being spent or billed on the project for the construction cost, the engineering cost, and that. So that's in the works right now. So that will be a part of reporting that you get. So you will see where those other continuing expenses.

And actually, it's an escrow. I just didn't know, with the growth in the projects that we have going on, I anticipated it being different. I was anticipating. Two commas. Good job.

And we try to, you know, again, we look at our cost today and we're tracking under so far for this on cost. That's why we didn't increase it because we're... You're tracking under? like the budget that we have this current year. And so there's no increase because again, we're within our range. So we don't, it's been a busy year and hopefully some of these things will start dropping off and completing and extra items.

So when you think about when you do the escrow agreements and they do their feasibility study, that escrow agreement and that deposit is what pays them for the feasibility study out in the city. So you see a lot of bills come through, right? They're doing a lot of work. Yes, and those escrow accounts are paying. But this is just the way to the day-to-day people in the line selling stuff. All right, any other questions? Waterman Seward. Any other questions overall?

So I just have one and just run it by council. So if we go back to our very first fund summary page where it says total revenue, total expenses, general fund surplus or deficit, right?

So we're showing a surplus roughly of 180,000.

When we estimated our revenue, how conservative were we?

So we are somewhat conservative on this. And part of that, that's part of the challenge right now in looking at our revenue, right? So we have a certified estimate from the tax office. But when I go back and look at that certified estimate from the previous two years, it's way higher than what our certified values come back. So I think our certified estimate, the value increases like 14%. I can't, I can't go, I can't put myself there. We'll have a hard number at the end of the month, right? So that's one of the pieces. The other piece that we're looking at, and actually Mr. Walker came in the other day and we were looking at sales tax data. And we've got some, our projection right now has only got it in, I think I've got it in as a 3% increase. Based on what our time was for, through May, our overall increase year to date was, or actually it's July, was like 1.6%. Let's hang on a little secret, although I don't have any details. Our sales tax deposit this month is larger than we have ever seen. It's giant. Go on the website and look. It's $2.1 million. i don't have the granular detail yet i have no idea how much of it is an audit payment no idea how much of it is current no idea if it maybe isn't ours i don't know but that's what And so, you know, looking at like some of the trends and where we're seeing some of the things that have dropped off.

If you look at last month, it was way low than normal. So there was something that happened.

But when we combed through that data, there wasn't anything that was glaring that would put us thinking we were going to do this, but how much this one. So huge quarterly filer or...

I don't know. I want to go in and see what we... So I'm telling you, that number again, 221. 221. They always wonder that maybe we have to pay some of that back or something. Yeah.

We might. That's why we're going to, you know, once we get the grade... I mean, we have had to do that before. Yeah, I know. 2 years ago. Yeah. 3 years ago. Yeah. So we'll be looking at that. So the revenue is potentially conservative. The other thing I'm sure you saw in there, the use of surplus funds. We brought in $800,000 to cover that park expense. And the reason that we did that is so that you were seeing that project is not impacted here, right? If our revenue comes in much higher and we don't have to pull that from surplus, by all means, we're gonna make adjustments and not pull that from surplus.

if the goal is to go forward on that project so i what i want to put the council is to look at think about it fund america fund the merit raises at 50 or 60 and then we look for another 100 000 and maybe that's from the park project instead of funding that a whole 100 we funded it you know 85 and put 700 000 into them Basically, it'll bring us down 2% on total expenses and get us closer to the 17. Now, it won't be. It'll be 17 and 19 roughly. But... Now let me ask you this, and I know nobody here has a crystal ball, but there's a very large grocer coming in looking to open an August time frame.

Great. Yes.

And so that would be until the end of our fiscal year. And so I'm curious as to, just going to... So if they open in August... I don't recognize it. It won't come in until October, so...

What's that?

It would show up in the third quarter.

Right, but there's a lot of variables there. I'm not sure yet if they are monthly payers or quarterly payers. And depending on when those monies are received, they will push back a portion, but there's a lot of variables there. So we could be seeing a portion of that.

I would like to get money.

And that's exactly why we . I don't know about that. I imagine it will be quarterly.

Even if HEB goes up, I mean, somebody's going to go down because they're taking customers away from where they would normally shop.

I disagree with that. I disagree with that. I mean, not the beginning.

There's a surprising amount of people that shop HEB in Willis and Victoria. Yeah.

We never want to anticipate 100% of that as just an automatic increase. Because you're right, there will be some things that fall off slightly, but not... Not the mountain that we're going to get.

I don't think it's going to be...

I guarantee you, I've already had friends that go to church with me that live in Colorado that said that when they should be able to see their government. And that was funny. And one of them was about four blocks from the H-E-B on the left.

Let's go. People are starting to come to me. My desk is in the room. What's here? People are starting to come to me and see the traffic. I don't want to tell them.

I'd like the council to think about it and see what that sounds like.

What was your recommendation, Casey?

We're funding barriers at 50% instead of 80%.

So 4% at 50%? We also have that $30,000 savings on election day.

She said 5% at 80%, 5% at 50%. You said 4% at 80%. Oh, I agree. I agree with you.

It is, effectively it's a 5%. So 5% funding at 50%.

It's really 90 grand.

So that is, remember the merit goes into play as of January 1. So it's not for the first three months of January.

and then did you have another piece of that was uh maybe looking at i know we talked about keeping the full 800 funding for the park but if we roll it back to seven i don't know what that does to mike

I'll leave that up to y'all what we pull out. Yeah. Can we make it work with 700? Absolutely. Because like I told y'all, keep in mind, I brought a full plan, you know, to redo the entire park. Maybe Stan will... This was the first pass, right? Have a sticker price so we can negotiate it? No. That's the amount. That is buy more pricing with the funding in. Now, we've got a couple of... Well, we've got one grant application in right now, but we're still looking at some more.

Say that again?

The one that we applied for is 50%. Don't gamble on that. I mean, don't put your money on that.

Yeah. Okay.

I don't have any problem making those adjustments. But can we make, can we do a lot of work over there and make significant improvements with 700,000? Absolutely. So I'll just need some feedback on what y'all want to pull, you know, at that time. What do you want to look at? It should change in the plan.

Those two changes roughly concur.

I'm really glad that you went out and did that, Mike.

Yeah, that's good. It's really good as far as I'm concerned. We'll tear up the police budget once we see the police budget.

Okay, next up, session regarding the city's five-year capital improvement projects, including impact fee, deposit summary, 2026 CEO bond summary, and one-year project exhibits.

You know, this is a little bit of change. We did the budget just like we actually and this starts tying it together. There's still a lot of unknown numbers. Is this understandable to you? Does it flow good? For me, I think it's perfect.

Get your hands together, get your departments where you think you're gonna be. This is the only thing you see.

It's hard to get to that and get through that. But we're not involved in that perfectly.

Well, the point is to kind of tell you what's new or what's changed. It's really to highlight, you know, those high level items. I mean, we don't sit here and talk about all the little Yeah, they're still there, but this is so you can understand how we got there. I mean, most of it's not changing that much, the percentage that you see, and it's easier for you to call out, but... And then when we get to the CIP, we've worked on that as well, and Zach's put some work in. Hopefully that's a little more clear. We even have some pictures in there.

You need a handout, right? Yeah, I'm going to address that.

I'm going to address that. I have a good vision that I know what's on it, but, you know...

Yeah, I'm going to do this.

Yeah, so I'm not going to spend a lot of time on this because it's going to be too hard to follow. So I'm going to go through the exhibits and kind of the what, go through the high-level summary, and then there it is. I was making some changes to this, and I messed up some numbers on here, so I need to send this back out. One, large enough so you can read it, and two, the clear number set. Two. But I did a couple points. Yeah. Yes. 100%. So we try to boil it down and put more information on one page and it shrunk in the process. So there's two packets in front of me. There's the unreadable packet, except for the pages behind it, those are readable. So just kind of hit a couple of the points that are on the list. One is just the impact piece summary, so that number that Marianne was talking about, this is where it all comes from, what's expected and where. You'll see kind of, what's all included in there, and when we expect those numbers to hit, which is what makes up those total numbers. So again, this is based on what is active today, what is moving today, not things that are If we know about it, it's an important development. Yes, for sure. For sure. When you take the combination of the impact fees plus the development of the project, there's a lot of work being done in the city that isn't directly being paid by the agency's residents. So again, when you look down, this goes through the detail, you then have your impact debalancing. So currently you're at roughly two and a half. We expect what's coming and what should be planted here by the end of this year to have about 3.1. 27 is a big year. Goes up to around 6.6. Again, you have, you know, N27, you have Superior Properties that's doing report repairs. Additional, next to AGME, DCS is a big one. You know, their development is starting to pay impact fees. And then you have all your residential, which is the Caroline Court, as well as another section, Montgomery Bend, and Briarwood. There's a lot more sections to come to that are all painted back to the civil case. So as that number continues to grow, which is good, there's obviously a lot of projects to go along with it. Flipping back one page. Mr. D, any questions on any of that, please?

So we've spent those.

So the reason it still says current, we're still waiting to close all those out with the grants. So those funds have been... I think there are some funds left in that. Okay. No, it's not a hundred thousand so based on what we were

So remember, this goes back to it had to be the projects that we had with ourselves, right? So it's only those two projects that can be expensive. There will be some money left over. Potentially $40,000 to $45,000. We're working with GrantWorks to be able to basically utilize those funds, but they cannot be used for the purchase of or procurement of services or bids. So what it's going to do is it is going to pay the city back in all likelihood for payroll expenses that were related during COVID. I realize that's way long time ago, But that's the guidance that Treasury has given, is those are eligible expenditures because they were, the category that we're using is like replacement of operating capital, right? And so that's allowable. It just has to be somebody who is here during that time. So.

So what it is, it's basically paperwork.

We have funeral records from that time period, right? So we can show that the wages were incurred during that time period and that they were paid, right? And so it basically becomes a, we have to do an administrative report because we hadn't reported that expenditure prior to this. So it's just kind of a catch-up report that's done to recover that. We have the funds. It's just at this point, papering it.

Okay. So we're working on that. We have the funds, but they're locked in ARPA. Once we credit ourselves back somewhere there, we have to show that credit to short-term.

And we didn't already. So I thought that there was some overtime and some other wages that we paid out of ARPA prior to. So my question. We didn't? Okay. Chief, we didn't pay PD, ARPA funds for PD overtime?

There might have been some CARES Act money that was used for that. And that would have been like cleaning. And there were some things that were allowed during that time. But that ARPA funding was, there was never anything that was assigned to ARPA. More importantly, if it had, like if we thought we had, it had never been reported. It had never been reported as such. And that's the key. So at this point, the easiest thing for us to do is to be able to go back, take one individual, a time period, and shore up that hedge. We do not want to send money back.

Okay, sorry. So Chris, you talked briefly quick about VCS properties coming in. I have a quick question about that. And it comes from something that our administrator mentioned to me about the roads.

Are they trying to back out of the roads? No, so the roads bid on Wednesday. So the way that the what is included in the base bid of the roads is from C.B. Stewart to Buffalo Springs just north of C.B. Stewart down to Home Depot. and then the north side of the intersection of Klepper all the way down to 105 to making those concrete. So what is not included in the base bid is the north section. So from we are in the basements completing the intersections of both with concrete and there is an alternate bid for the stretch between them. to say okay based on pricing it's going to be a whole lot cheaper to do this one big project is that something we the city can fund is that because again all these project costs are coming in under budget so far for bcs is that something that bcs is willing to participate in

and go up to Buffalo Springs? What is considered the north part? Is it at where is that?

North of the intersection. So north of the intersection will be where you complete essentially the stop marks. Where your stop signs are. That's what I was asking. Where it stops.

Are there exhibits back there? Okay, so it goes all the way to the north side. Yes. Yes. Yes.

We'll do a lot of work.

The church bought this piece. They come back and bought the extra piece. Oh, at the end here?

No, there's like four acres or something.

You ain't going to get them to pay for this whole room now. I remember talking about asking the church if they would participate. There it is. The church in Montgomery bought that other piece. They're not willing to participate.

I think the next logical development that would and sending that. But again, the design was complete, so we finished that. So the next item on your packet, going backwards, I apologize, is the CO summary. So this is the 8.5 by 11 sheet. This one? So this is just an update of where you currently stand on the CO funds. So it's on the smaller. So again, this is the first column on there is all the estimates of how you use up the full 2.7445 and the CO claims.

The second column is what is contracted to date.

Obviously, there's a big doubt that the bids for the plants haven't been completed yet. So those will fill in. But just with the demo project alone, right now you're about $800,000 below estimate based on the bid prices. So again, hopefully we have the same results or lower results when we do the next two projects and then we'll have some available funds left in the CO. If you remember, when the COs were submitted it was for a general water and sewer infrastructure. It wasn't specific to a project so that's why we continue to apply for funding for these projects as well as other projects to be able to

Move those funds around and use them as funds.

Related to that, this isn't a specific exhibit. I think we mentioned this at the last council meeting. House Bill 500, so that is the water fund that the state did. So it's $1.1 billion in funding they have for water infrastructure. We are working on those applications. based on water production. So you can't do water replacement. You can do anything that expands the capacity of the system. Like a water power? Exactly. The water plant, any future improvements, adding a second water tank over at water plant two, anything like that. So those applications are due at the end of the month. So we're applying for those. Those are 100% grants.

Yes, please.

You said water plant number two. Why don't we replace a generator over there?

So it's if needed, so it's old. That is a old, that was not, that was not part of the .

So the generator, the booster pumps are all still there. Those were not switched out. So that, again, that is a,

The grant that you're talking about applying for. Yes. What group is that from?

It is administered by Texas Water Development. But it was set aside in the last legislative session. It's like 1.03 or 1.1. Do we have anybody on the board? I mean, there is regional reps that we have worked with through the city that the Water Development Board has. They have their regions that they cover. We'll reach back out to them. We haven't talked to them in a bit since our last round of Water Development Board funding, but we'll reach back out.

Did we get good results last time with any other grants?

So back in 2017 timeframe, the city applied for some low interest rate projects. And so that's what funded water line replacement downtown and some others. Those were low interest loans. They were not granted. So this is actually a true grant. All right.

What is that?

So mill and overlays for asphalt streets, they'll ring in the grinder. They will mill off the top. Also they'll, especially with our streets, there's a lot of them are not milling off the top and putting it right back on you're going to have the same issues because we're actually fixing the base so we're our most of our recommendations are email into the base and then redo the base on top of that so it's it's not just a mill and overlay really just take off the top two inches and put down the surface coat but we have so many base issues that doesn't apply so yeah so What we'll go through now is this exhibit packet. And so what this is, this is everything on the one year. So some of these, and I'll point them out as we go, they're moving forward. We have contracts. It has to happen. Some of these are recommendations based on where we are in our 15-year plan. And then I'll sit back out, again, this document that's larger, and a couple of cleanup items. For example, flip station number five with... TriPoint City has a 30 percent share in that project that's paid over five years so this shows the whole number we're dealing with 150 grand a year for that eight hundred thousand dollars. Some of the roadway projects that we'll get to, so Mike has been working with the county to do Les Morgan and Buffalo Springs with the county contract labor to do base fixes, not a complete redo, but fix the base in the bad areas and then do a mill and overlay of those streets. Right, Mike? Buffalo Springs. He said that they would be compressing.

So he called me, his second guy called me earlier, or late last week. He said the price they're looking at right now is about $90,000. That would get us patchwork between the bridge and 1097. And then everything from the bridge to Lone Star Parkway, they're recommending doing some patchwork. And then actually just an overlay instead of a mill and overlay there because they don't want to disrupt it. But 90,000 that could possibly get us through a couple more years. Had a conversation with Zach the other day about this. Could it get us through a couple more years until we could redo that road, finish it out in concrete? If we're going to try to get all the way to Lone Star Parkway, ultimately that road needs to be concrete all the way if we want it to last. The amount of traffic on that road.

Oh, absolutely. Yeah, it's like with the UCS and all the recent roadway projects, in order to make the asphalt sufficient enough

it is more expensive than just going back to the company because the amount of base work that you have to do, that you have to do to hold up based on the geotech recommendations, it's not worth it.

Michael, I mean, I drive it, obviously, but not daily. There are a lot of holes. I remember seeing, like, I don't know, dimmits, but, like, where it's worn because of a lot of that truck traffic, and it's going to get worse with that fire song, and they're coming down that way, cutting through town, not going too nice at all. street. Unfortunately, we don't get any goodness from that because they're not in the city so we can't ask them to provide compensation for tariff or rights.

Right. Right.

Right.

Okay.

Correct. Can we back up to the list station number? Sure. Which one? I'm under the impression that that list station was going to be so far north. I thought it was going to be north and down by year 105. List station five? Oh, I thought the list station. Yeah, right. Okay. Yes. So we're moving it from here back to here.

The reason was just by depth because they had to get across the creek here and then getting it back off the road. That's where it went. because this is going to be the first one. So lift station number five is where I mentioned we have a 30% share in. It sits, so currently where Napa Auto Parts is, it's the lift station that's down in the ditch. It is getting relocated and moved up onto the tri-point site. So it's more centrally located and it gets it out of the ditch, which is the big thing. Right. So I will run through these exhibits on how what's in the one-year plan or what's one we recommend looking at the one-year plan and we'll go piece by piece. First item, or first exhibit you see, is regarding the water model. So as now, you know, last water model that was truly known was back in 2015, 2016, when the master plans were put together. It's been updated and ran over time and doing a full update of the model. What that does is what helps us better regulate the system. And as we continue to grow outward, be able to model those better. And so it's a good thing to have. Also, it kind of gets you ahead. So as we continue to grow, as we talked about before, you have your TCQ paper capacity, what the TCQ says you have to have, and then there's the actual capacity, what you can provide. In order to prove to the TCEQ that you don't need to go build that extra pump or whatever it is, having that model is key.

And so they need to require that they see it. So that is on here. Again, these estimates are 10 to be conserved in. So that's the first item on the list. Going on to the next page.

which is going to be bidding here the next month or so page after that you have the utility extensions for around vcs property sites so if you look in red on that exhibit those are all the water improvements that are being done as part of that project that project has been to do contracts. We are just waiting on developer deposits to get those going. The city's share of that is one small section of water line that's outside the church property. That bid item was roughly 18 grand. So that's what the city's going to make this year for that line.

And the rest of it.

just so I include, all of this goes into the reimbursement agreement with CCS. So that's a tax reimbursement over, I think it was a 10-year period. So it's, though the city's not upframing the capital for this project, it is getting paid back to them. Next page is the generator replacement at the water plant number two. This is what Carolyn or Cheryl mentioned a second ago. Again, right now the generator is operating. It's on the list due to age. Again, our recommendation is it's in the budget items. We have it in there. Hopefully it continues to last. I'll be gone. Proceed with that. I didn't have a dinner at eight on this sheet. Next item, the Stanley Lake interconnect. Again, this is the additional water interconnect. Right now, this is really on hold while we wait on the H-E-B development across the street, as they're looking for the additional property with KOAs that we're in feasibility for. That might change this and also change the layout. And ideally it gets done five times this month. So we're just waiting on it. right now on that feasibility to wrap up. We got the, they also run feasibility with Stanley Lake. So we got those all to the class suite. So now we can put it all on corporate. Next sheet, obviously the wastewater treatment plant. That demo, that contractor, we've had the kickoff meeting on site with them. So he should be mobilizing any data. He hasn't mobilized already. So they've mobilized the site. So the demo's going. We're wrapping up with half the final plans. So what we did is we split out the demolition portion from the new construction portion of the project. So this is demoing all the old wastewater plants that's on site. At this site.

So that contract was left and they should be

Demo will be out there here and then the new plant would be slightly south of this but this trees none of that gets back. All right, we talked about legislation number five, which is your next sheet. All right, keep on moving. The next item is the sanitary sewer related to BCS. And so again, this is the project that has been bid. We're just waiting on deposits from the developers. Extending that sewer line as well as there's a lift station number 12 that's right there at the corner of Seaton Steward and 105. That gets removed as part of this project and followed by gravity. So then for that, less needs to break, less pumps, and everything else is all by gravity. And that will be completed with this project. It's all part of that. It's into 380 grand. That's all paid for by the general. All right. Next sheet is Caroline Court. So part of their development agreement with the city is they're extending a sewer line along their frontage to serve their track. Again, while it serves them, but it also, the Solomon Electric site, it'll take it further so it can be extended if it can. That is fully funded by them. Onto the next sheet, the Montgomery Crossing development. I do think she's going to try to keep her original development agreement based on correspondence we had earlier today, but we'll tell you more when we read into it. This is for the upsizing and forest maintenance of her property. It's on the list. It's a project that will be an asset of the city's but not paid for by the city. Is this the one that expired? I believe that's the message I saw earlier, is that she's going to keep the agreement she has.

However, I haven't...

Well, see, I haven't read the whole message yet, but that's not interesting.

Okay. You've got the whole thing. Roadway improvements for BCS we talked about a second ago. How would those cost you these colors? which is what Mike was discussing with the county. So in this year's budget, it's just that work that Mike is discussing. So going back to basketball, packing, repairing, overlaying the road, not making it concrete. In the five-year plan, it is to switch it out to concrete, but right now just kind of keep it going.

And if we can get that, it's in this year's budget already.

Yeah, correct. And they did agree to do it. Well, he said that their timing looks like probably the fall. So one of the things, and Marion, don't let me overstep what I'm saying here, but with the new line item of transfer to capital on the streets, we can actually transfer the money this year over to that new line item. That way, if we don't get it done by September 30th, that money, we don't lose it back to you. you know, back to surplus. So we'll still be able to do it with the money from this year, correct? Okay.

And once we get the final numbers from the county, we'll be able to update.

He gave me a figure of 90. I told him I was going to feel out here in this room and see if we wanted to do it.

If so, then...

So that is north of the bridge to 1097 is some patchwork, and then south of the bridge all the way to Lone Star Parkway is patchwork and an overlay on existing... Yeah, it's not... So I told you if it sounded like that was a good idea in this room, then I'll be bringing a resolution to council to follow the... For the county, for the county to do the pay-to-work comp on these frames. Officially requesting y'all have to do a resolution, which I'll bring. Every request, yeah.

Let's go to the next page. One of the other roads that's in Dyer being repaired is Pleasant Morgan. Again, it's one of those that doesn't have to be done this year, but it's one of the... Again, with this one, with so much developable property along Pleas Morgan, there might be more for waiting on. We can't see how that goes. Yes, so that is on here.

Again, the erosion repair to Pleas Morgan.

So a couple of things regarding that is, you know, we're actively working with the developers and the district. So now this property is owned by I believe it is. They are working on currently, they were taking to their board a repair for right here by the school to stabilize the slope. And we're going back and forth on working on kind of addressing all hot button items, which are at Plez Morgan and specifically at the creek that runs between Town Creek Crossing and the school and a couple other spots to get.

What's the, who's the engineer for the mud?

Those are the majority of the projects on the list. So, and again, I'm not gonna try to walk y'all through this small print, but the gist of how this is set up when you get it, the columns in blue, the colors are easy to see on this, those are 27 divided between city and developer funding, and then the columns in orange or peach 28, 29, 30, 31 in those projects that are on there. So of those, and again, we'll send this out, the biggest thing in items and the biggest year you have is in 29 is that next phase of the wastewater plant. And that is something that we'll be likely pulling the design forward so it's ready to go when we can. So we will clean this up. I have a couple, I have some math errors that I made while I was trying to change some things. So help me Chris, with the loan that we just received, I thought that had that waste work from the plant meeting. It does. Okay. The current expansion of the wastewater plant is there. Right now, there's another expansion expected that is not in it. The size and location of that is really to be determined. But this is kind of the $14.5 million wide item, which, again, it's high.

But that's the future.

is what's on that co summary that you have to fund for we should would have access from those funds yeah i mean you're you're looking this is obviously a big year with those two large planning projects If it goes anywhere, look at the very bottom line, which has inflation and everything in it. 4.8, 25, because of that $14 million hit. Nine, 11, totaling up to 50. That's not a second here.

Again, those are 100% of the cost.

That includes things like the concrete conversion of Buffalo Springs, like we talked about. That includes an additional $500,000 a year for just miscellaneous roads. Westway, some new roadway projects extending Westway through once the morning cloud development goes across the development. And then some other items at the top that are really based off of, you know, planning for it, but hopefully don't need it. Water well replacements, reworks, things like that.

This is worst case scenario, and then we can get some development funding or additional funding.

And we're always looking for funding partners and or grants, et cetera.

I like that word, funding partner.

So well two, well three are new. Well two is brand new. Well three is.

Correct, so those are water plant. We want to just ask a question.

Well work, right? So is it well four, that's the oldest right now? Three. Three is the oldest.

It's about that. So, I mean, we expect, you know, it's about a year, right? So we don't have a well-being problem. Correct. Yeah, and so water well reworks are planned in here every seven to ten years. Four is kind of what we estimate. And then what the city does is on a biannual basis, there's a jam services report that does a performance test on the well. And as long as As soon as we see that it's not losing performance, we'll keep on pushing that rework back. As soon as we see their drop in performance that's not due to aquifer change, or they test for brass. So obviously you have brass shaking.

The other thing I would do is we should be looking at the, because we have to test out what our cops think, right? We need to pay attention to changes in content, in real content.

Are you saying that we're, due to the data centers and stuff, we're depleting the minerals?

No, no, no, no. What will happen, like we've seen with well two, that was a catastrophic failure. Absolutely. It caved in. But there are signs of wells that start to die or happen.

With the gravel coming through.

You'll start to see changes in your content of your water tests.

Being caustic.

What?

Yeah, being a little caustic or not.

No, you'll just see changes. You'll see increases in rental accounts. You'll see, oh, hey, we have to treat this a little more. We used to have to treat it. They're just subtle signs of the wealth changing because of deterioration.

Right. So in the reworks that we have, the pricing that we do at reworks, They'll obviously pull the equipment, televise it, do a scan, see what's wrong with it, and then either a chemical clean of the screen or mechanical clean and or going in and patching for screens that fail, things like that. Just to monitor precise before it gets to a catastrophic failure.

Just for note, well three was constructed in 2005, well four was constructed in 2014.

Technically, what would be, if it was always maintained at a very high level, what could be the maximum that you would always lifespan? Yeah. The fact that we didn't work that well over 40 years and that lasted 40 years is amazing.

We might have got a couple more years out of it. No, 80.

It's just the amount of value that we quote.

It's just the amount of value that we quote.

I know we're in the Catalina and the Jasper Wells. Is there, Texas is going through this, in the real estate business, they've completely changed our documents now that all the wells have to be registered to the state and they're doing a lot of, I don't know, micromanagement, whatever that word is. So are we worried about a water shortage or a statewide, S-wide, like, How important, no, it's important. How serious is that?

Like an aquifer drawdown.

So, I mean, you know, one of the things that's been cancer is they monitor the aquifer levels at the level and see what your submergence is. And it's tracked over, I think they, each graph, I mean, they provide five chemicals. We've been holding constant. You see seasonal shifts, which you expect, because obviously you have more drawdowns in the summer. And so when they do the September test, it's lower. And what we really look for is the recharge and that bounce back. And so far we haven't seen, this is not just in Montgomery, but this area, that recharge is keeping up. It's not having issues. Now, we haven't had 2011 drought. So, you know, we've been fortunate for weather, we were fortunate that we haven't been in that situation, but You know, we're constantly working, you know, that's the long-started angle, and so we're working with them to make sure it's permanent, and we're getting our capacities allocated to be able to do those draws. We're also making sure we're constructing the wells deep enough that if we need to, pumps and settings can be lower, and we're not, you know, having to drill a new well because we've lost energy.

So what I hear you saying is the city's preparing and being proactive about potential, but the future can't work out.

And it's also kind of going back to the different sources. I mean, we're drilling a new well at Waterfront Fort, which is on that side of town, so we can produce water over there. And we've talked about tonight the interconnection of Sandford Lake. And we still have River 40 that's down the road. I mean, that's in private. not talking about doing that, not necessarily, you know, financially, it wouldn't make sense. But again, from sources of water and things like that, there's options out there that, you know, we're not like, there's a lot of places in Texas where it's not as easy to drill a well, and especially not a well that, you know, your wells produce 1,200, 1,400, 500, 600 gallons every minute. You know, we have, you know, wells that we're drilling a whole week at 6, you know. And how many now wells, what field do I need in wells? That's not the situation. Okay. Thank you. So we will send these numbers up, clean it up, send it to you. I want to give you is for 2027, what is that total number that we're expecting that we need to spend outside of the COs and what developers are paying for, et cetera. If I mess up the math, I don't have that number in front of you, but I'll have it to you by the end of this week, so.

Great job, everybody.

Yes, very good. Very, very good.

Closing agenda, number seven, council inquiry, anything? Moving right along to number eight, items for consideration for future agendas. And number nine, I'll entertain a motion to adjourn. Motion by everybody. All those in favor say aye. Aye. It's 7.56, we will adjourn. Thank you. Ms. Laley and Ms. Fox. That's correct.