City Council - Special Meeting

Do a motion to approve.

Participation Okay. Okay. I'm Danny Barrett. I'm the director.

I'm a partner with firm and based out of our office. Appreciate the opport TCG community through this question. Brandon tax collection firm government Texas services kind of show you what we've

We put together started TCG and what we've ended up couple time. So what we did is we took what they do what theyap from the tax code. Three things I wanted to point out to you that really focus on properties are properties that have gone for auctioned off. school district

found out in the tax hand properties out of those properties We built an online One of the other things that we do is unique to Purdue TCG maintaining bringing Since we started our processed market,

Next, I think probably years We're not identif property tax properties that need All together. One of the other things about couple months ago.

It's a really good tool where it works development. A lot of times we have Dad along this can be a great answer. That's a great way to get that property. very support offices are kind of our special You don't have a tax alter.

We've done a lot of code enforcement. We started to help out. Very good. Share Creat. Patrick collection kind of going backwards. I think from the tax

sales. Additionally, the other thing we found out That's great. property number This is a good addition tool. We're putting out signs where it's coming. You don't often have trust property

way. real estate. We applied for contract. So we did that. Very excited about And we're always looking for ways to better grew up in small town. I like Yeah, I would just add real quick does a great job and services they're offering go hand in hand with the tax collection service that we offer and we can

The best news out of all this is tax collection and TCG collection essentially free. It's a free service. It's all contingent based. And so the real question is, you know, we want to provide a great service. That's what differentates our firm do. We bring along because they're going to provide services. So again our firm was founded small employees for tax collection or the code enforcement. We would actually work by along my question. firm. What we're saying is we want to provide the value add. So if there are $100

through the city and it goes get turned over to collection there's an additional penalty interested$100 that's what that's what we did that's based on statute that's our collection% of That's correct. That's correct. We collect the delinquent taxes. So you know tax goes out. I make this an bells and whistles. I like to think that's kind of tax. figur.

applic. You guys really in deplet I always see this 50 years come in this already. It's a different heavy $30.

It doesn't come out of New York. Do we already have a firm that does this? Don't Don't we already have a contract? Okay. Okay. They do do the code enforcing, right? So, so do we have a a contract that we can cancel at any time?

They do the code for There's some properties out there enforcement also. So, we're not taking anymore. You're just getting started. This is calcul. over. Don't worry. I'll get into

That's the most I'll make a motion to approve the tax rate at the voter approval.

I'll second that motion. I don't want to ask questions. Whatever Q&A. Let me start administration,00 project. maintation.

money. Another problem we could be situ You will not all departments. So I think long term last week $5,000,000 carry over minor improvement changes biggest as far as fire department is concerned,000 out of wages.

got rid of fire over And then police,000 police department were able to cut out of $25,000,000. So they're They have$1.2 budget areas that I felt like small train control expense. the 30,74 generator and contacting the generator also for agree that they felt like we could work together. It's not

need a talking about how they're going to get through the city. We also cut out the $5,000 for the equipment. Remember the animal shel had a lot of conversations writers on that timeline on They feel that construction best case scenario start the only cost will be I don't think we're going to construction In case we do see that money on the

out that by $25,000. Any questions about that? for [Music] gas power. Are you ask [Music] on the revenue side of it. shelves each

park special projects. I brought main support,000 and then I added,000 grant is required. We feel pretty slow. We will slow firefighters. But we should find out pretty So those are the brought us on that utility budget. I want to thank James

utilities total of 72,000 They're cut valves and water supply gas oil,000. That was pretty substantial. water department on that60,000 total 245. So that last week There's only one budget Just one.

So then on the wastewater,500 Maintows. department. I added $24,000 and that is actually money that we have already. So that's stillwhere 500,000 short not the We're still waiting. I just got some numbers accurate. It's not accurate.

We only have a month on that. So my goal is to have utilities. The other thing with the water development board discussions development $1350 increase this October followed by increase according to figures that consultant So that's all good. They're going to want a resolution. This is not adjusting. We don't have just based on

I don't understand on that one. What's taking us so long to get that cost because it's all about potential water usage. Correct. Well, so if I have an 8 in meter, I have a potential to put a huge burden on the water system as compared to having a 3/4 in meter. So I guess I'm not being mean or sarcastic. What do we need to do to get those rates put in place based off of meter size?

I have done a study of all the springs. size like an 8 in.

They're not cheap because it's a it's a potential water usage and that puts a strain on the system and y'all have a lot of work to do when they do that. They use the potential that they have How many do we have? school. They're still there. So in that study we'll have calculated rates per meter size and that's what's going to help drive down res.

Yes. water.

Excellent. service. We Well, we know. Well, we know that they installed 1141 m, right?

That's 212,000 a year. And our note is 197

but but then we're adding more for there for all the individual units. I'm going strictly by meters installed from Maine was 1141. Okay. So, if Logan's point has 104 units, we're going to add 103 to that. So, so we could very easily lower that

because that note payment is one. We only have the one payment for 197. But I have I have a question on that in the budget because on the sewer it's going to be line item 51722. It's on page eight. It's the 2012 CO's First National Bank. Shouldn't that be the the amount of the note payment for the expense?

Uh 517.022 about halfway down the page 2012 co.

Well, it's the expense. So when we're bringing it in, we're bringing it in at 2 15,000, but we're only expensing 19,188. So my question is, shouldn't that be the amount of the note payment if we're paying it with that assessment fee? It wouldn't be consistent if it was that many because it's I mean look where it's going.

Well, I know, but I'm thinking it's been wrong here because here it was 110 and then it dropped off. So, where's it where's it accounted for? So we're only only expensing a portion of it in the debt. But

but then if it's going in the debt fund, then it can only be paid with I'm just thinking if we're collecting the fee then the full amount.

Okay. And in the debt fund I'm looking at I see co first national bank but it's zero.

Okay. I didn't I didn't print all that's only 23. And that's only 23,000.

So do do we transfer money when we collect that fee? Then are we transferring money to the debt fund? Then there should not be any expense in the debt fund. It should all be in the sewer. on page eight. I'm just looking at the if we collect that 1550 and we're taking in revenue of 215 Then the to me the expense side of that should be the note payment that we're paying with that that amount of money, right?

And I don't see that anywhere in the budget except on the sewer on page eight and it's only at 19,000. Yeah. So we're it should be more like 197,000 whatever the I think the note payment is 19 I think the question is where is that revenue going into because it's here 1918. Well, that's the expense. Yeah.

4016. Well, you're in the general fund. You got to go to the utility fund. You got to go to the utility fund.

Right. It's going in at 215, but it's only coming out at 19 188. Kath which is going to make that deficit a bigger number. You're saying 197 That's 1963.

Okay. So, since we're still on the utility then sewer, I have another question. Um, on the lease vehicles, how many lease vehicles do we have for the sewer department? the sewer. We have two. We had one last year. Why do we need two vehicles? So, do we know how often somebody gets called out? Say this year, do we do we know how often somebody's been called out?

I mean, just just off the top of your head. I mean, is it something that happens all the time? I mean, it almost seems it'd be cheaper to me to pay somebody mileage than to to lease a vehicle full time. I'm just curious how often they get called out that

not during working hours that they've had to come here at night or on the weekend. station. I can tell you sidetracked on that budget process. I know from a corporate standpoint we first started talking about le every couple years we ever decid that expense really certain vehicles you know I understand but other vehicles I don't know I know from a We put

the thing looks like a big number, but one ton pickup is now $65,000. about

I don't want you. That's the only That's the only That's good. Follow the pros. How many total vehicles do we have? Don't be counting Ricky's cars. cars.

What's a dick that police? 19 vehicles. That's a lot. We have 32 total employees. So we sold the one we just bought. Perfect employee. Also,

I mean, I just think we're going to have to start looking at we only get so much revenue. There's not a lot of ways that we can generate revenue. So, we have to start looking at where can we start cutting some expenses. I For instance, on the health insurance, is is there something in our contract that says we have to fund half the deductible on the HSA or is that just something we decided to do?

Okay. So, is that something that gets decided every year? Because I mean, is it too late to do anything about that? This year you've already done enrollment for this year. I know we talked about that when we did it and I know that new policy saves some money. I just thought about that.

But there's nothing that says you have That's my question. as part of the contract or the policy, do we have to fund half of the deductible? Okay, so we can set that number to anything that we want.

But the premium will go up if we lower the contribution to the HSA. the employee for their deductible, right? But they're but they're getting all of their insurance paid for, right?

Yeah. So, I mean, I don't know a lot of employers that pay half of a deductible for an HSA account. 500 to a,000 is pretty standard. That's 30 20 to $30,000. Mount Vernon doesn't pay what other employers pay. As far as pay I'm sorry, I didn't hear what you said. other employers for Mount Vernon,

right? But our compensation is at like $3 million with total package. So I'm just looking at I mean we 100% of health insurance, dental, vision. Is that correct for employees? And then we fund half of the HSA deductible. Then I looked at other municipalities for retirement and we pay the employee pays 7% and we two to one. Windsboro, Whitesboro, Quipman, Queen City, New Boston, Dangerfield, Commerce, they're all at 5%. That's a that's be a $40,000 savings. I mean, we're not going to generate much more revenue. I don't think so. The only way we're going to

balance budget or save for capital expenditures is cut some expenses of I think we can tax include insurance with that offset But we didn't get the choice. I mean, we were given the rate sheet for the insurance and then it was never at the end of a meeting and then we never it was never brought up and then it had to be signed in July. So, we didn't get the option to review it or look at it or

council. No, I don't want to put words in Mary's mouth at all, but I just think what we're trying to cut anything. I think it's just we're looking at a lot of things got to be done. We've done a lot together. And like we say, it's never cheaper to do something. But when you just a lot of emphasis on property taxes and and everybody just have to pay more for everything and benefit the city employees. We need good employees to help maintain these things, but it's just we're going to have to really look we're small town. You can't the only way to generate more revenue tax and so we just don't I mean I was talking to somebody the other day it's like every year it's more and then and then the appraisal district comes out with you know hey your home's worth Now it's like really you know where's that coming from? So I just we talk all the time about being good steward good stewards and I think the discussions are good to continue have these discussions continue looking at this. I'd like to have another meeting look through this and at the end of the day we'll all feel good that we walked away with something that's good. I mean we all have employees. I don't want to cut it takes me forever to find a good employee. I don't want quitting and going to work from work for a quart. $10,000 training. I wouldn't go

anywhere. And but it's just we and I'm not saying we cut anything. I'm just saying we have to get the things we really need. Just like just like your home checkbook, you get paid x amount every week. Do I buy Wonderbread or the generic bread? I mean, you got take a pick because I want the chocolate chip cookies. I mean, I know I'm oversimplifying it, but that's that's what it is. So, I have to No, they had

this has been one of the best best ones we've had. $500,000. I personally feel we don't need much

I mean I don't I don't think really that we are I mean

40 $40,000 surplus is not not a lot to work with. And I mean, our tax that's even maybe still even on the high side. That's using the the highest that's without taking out any ceiling transfers or any of that at a million. We've never collected a million dollars. So, I mean, this would be that we would have to collect every single penny on this revenue that we said we're going to. And I mean, $8,000 for events. What What are we gonna have that we're going to generate $8,000? I'm just asking the questions. I I just I'm just looking at numbers and I mean this year we had a lot of things to pay for that we didn't anticipate and we're supposed to maintain a 17% uh balance in our fund for reserves and and we're not we're not there. We're about halfway there now. So we can't have another year like we had this past year. I'm I'm just looking at numbers and and I would rather give an employee a raise and maybe not so much in the benefit side of it in the retirement and that and raise their take-home pay instead of putting it in an HSA that they want to put that money in an HSA, they can put it in there. Okay, because we're showing a negative number in there here today.

And I'm I'm just I'm just giving an I'm just comparing to

cities our side. Dallas. So that's balancing the ability% Yeah, I'm just having I'm just bringing it up for discussion just you know questions that because like I said we we can't generate any more revenue really than what We just have to rely on sales tax and property taxes and it's out of our control. Thursday be better for me. Tuesday.

Tuesday's better for me. Yeah.

We're trying to figure You got a low threshold. I