City Council - Regular Meeting

Thursday, August 20, 2026

The City Council approved an Eagle Scout project for flag retirement boxes and appointed new members to the Zoning Board of Adjustment. They also approved a conditional use permit for a telecommunication tower and a zoning change to highway commercial, while denying two other zoning requests. Additionally, the council updated its fund balance policy and accepted new employee medical and dental insurance plans.

About this meeting

Government Body
City Council
Meeting Type
City Council
Location
Santa Fe, TX
Meeting Date
August 20, 2026

Transcript

608 sections

1:47•Speaker 5

I now call this August 20th meeting of the City of Santa Fe City Council. Natalie, roll call, please.

1:53•Speaker 15

Mayor Brandon Noto.

1:55•Speaker 15

Mayor Pro Tem Marks.

1:57•Speaker 15

Council Member Schrader.

1:58•Speaker 15

Council Member McKamey.

2:00•Speaker 15

Council Member Jeanette.

2:01•Speaker 15

And Council Member Dickerson. Here. We have a quorum.

2:03•Speaker 5

Thank you. I now invite Pastor Jake Bigford with First Baptist Church of Atalama to come up and do the invocation. We'll do the process together.

2:11 – 2:45•Speaker 10

Let's pray. Father in heaven, we thank you that you've given us another glorious day in this life on earth. And regardless of what we have done today, Lord, it was you who brought the sin up this morning. And regardless of what happens this evening, when we lay down tonight, we trust that you'll bring it up again tomorrow. And in the meantime, Lord, may you help us to live as you've called us to live by the great commitment to love you with all that we are, our heart, our mind, our soul, and our strength, and to love our neighbor as we love ourself. Lord, we thank you and we love you, and we ask that you bless this meeting, and it's in your name that we pray. Amen.

2:50 – 5:03•Speaker 5

of the United States of America, and to the Republic for which it stands, one nation, under God, indivisible, with liberty and justice Well, good evening. I appreciate y'all being here. It's always good to see people out in the audience coming to be involved in their city government. I have a mayor's spirit of award and the recipient actually showed up this month. So that makes it even more special. But Kim, I'd ask you to come on up and let me present this award to you. Kim Stellhorn, I don't know that I could really do as good of a job introducing you or telling people about you as good as you could, but I know that you've been in Alta Loma for a long time. and was on the Altsaloma Fire Department. Oh, Arcadia. Excuse me. Excuse me. Don't hit me. Arcadia Volunteer Fire Department. Worked at the grocery store. And you've been around Santa Fe for a long time. A few years. Done a lot of good. Since I've known you, I just see you so involved in all of the city functions, the charity functions around town with your insurance agency always sponsored where you can. I love your historical excerpts that you put on Facebook about the good old days of Altaloma and Arcadia. But as you know, this Mayor's Spirit Award that was started by our former Mayor Bill Pittman is to recognize leaders in our community who don't seek recognition, but just do what they do because it's the spirit of Santa Fe and it's the right thing to do. and you exemplify that as good as anybody i know in this community and so i want to thank you for everything that you do for all the historical facts that you share we're coming up on our 50th anniversary of the city here pretty soon and i look forward to twisting your arm a little bit into getting some some stories and and some things together for that but uh just proud to know you thank you for everything that you do for the city of santa fe thank you

5:12•Speaker 3

I thought I was going to be sick tonight. Couldn't make it.

5:14 – 5:51•Speaker 5

Yeah, yeah. For those of y'all that don't know, Kim is also our representative on the Southeast Texas Housing Corporation Board, the Seth Board. And Kim has done a lot of things to represent us on that board. But some of the big things were he helped get a generator for the senior living facility over there behind Big Chief. helped us with some grants. We've got some grants coming to our police station and our fire department in the city that we're going to partner with his ministries again. So Kim's been a big advocate for Santa Fe, does a lot in this community, and, Kim, we really appreciate you and everything that you do. Thank you.

5:51•Speaker 7

Thank you, Kim.

6:03 – 6:14•Speaker 5

All right, Council, we now have item number two, presentation and approval of minutes from the July 16, 2026 regular meeting. Those were provided to you in your packet for your review.

6:16•Speaker 3

Make a motion to accept the minutes as presented.

6:18•Speaker 5

Second. It's been moved and seconded to approve those minutes as presented. Council, is there any further discussion? Hearing none, Natalie, roll call, please.

6:25•Speaker 15

Council Member Schrader.

6:27•Speaker 15

Council Member McKamey.

6:28•Speaker 15

Council Member Jeanette.

6:30•Speaker 15

Council Member Dickerson.

6:31•Speaker 15

And Council Member Marks.

6:32•Speaker 5

Yes. Motion passes. Thank you, Council. We will now have presentation of depart reports. Mr. Collins, good evening.

6:39 – 9:20•Speaker 2

All right. Good evening, everybody. Let's jump right on in. And we are going to start with the Municipal Court. We had 218 cases filed for the month of July, 152 warrants issued, they cleared 115 warrants, and they brought in almost $42,000, which is a significant increase. So we are very excited about that at the court that people are paying their fines and tickets there. Next, let's step into our finance department update. I'm proud to announce for the month of June that our sales tax went up tremendously from 2025, which is quite the change from the last few months. We went up roughly 20% from June of 2025 to June of 2026. So that brings up our fiscal year to date to 4.6%, which I think it was at 2.7 or 3% last month. So that definitely helped bring our sales tax numbers up. So we're really excited for that here at City Hall. Next, as we always do, I go over our top 10 sales tax contributors. So, of course, always number one is Sloan Building Supply. Amazon takes the place for second and third due to the wholesalers on there. Fourth, HEB. Fifth, Tractor Supply. Sixth is Reliant Energy. Seventh is Dollar General. 8th is Santa Fe Big Horn and 9th is McDonald's and then 10th is O'Reilly Auto Parts. They are very successful here in Santa Fe. It's definitely interesting to me that Big Horn goes above McDonald's, but great to see two restaurants in that mix. All right, next we're gonna move to community services. So there were 213 permits issued for the month of July. We only had four new residential permits filed. We collected almost $88,000 in permit fees, and then we completed 114 inspections. All right, next for the rentals for the month, that went down tremendously. We only had two rentals at Thelma Weber. For the month of July, we had three rentals at the Runge Community Center and then one for the pavilion, and we collected $330. All right, let's move over to our police department. We had almost, we had 3,269 calls for service. I know at the last meeting it was requested for how many calls for service of that number did we do from the ESD, and that was 172 calls that we received for the ESD of that number.

9:21•Speaker 18

Is that in addition to this or is that included?

9:24 – 11:45•Speaker 2

That is included in this number. It was how many? It was 172. And then we had 60 arrests for the month of July. They gave 148 traffic stop citations out of 459 traffic stops. For our CID, they had 30 new cases, so they have 85 active cases right now, and they cleared 28 cases for the month of July. Next for Public Works, there were 68 segments of streets that were patched in July. They excavated the south side of Tallow Street and then E and a half from 646 South going to North and then also Avenue E from the outfall to FM 646 South Ditch. As far as paving for the month of July, they had Avenue R and then Peck Street. And then as far as drainage, there was 44 linear feet of new culverts that were set and then 20 feet of linear culverts to recorrect drainage. All right, let's move on to the library. We had almost 2,900 total in circulation. We have 107 active accounts for the month of July. We had almost 2,700 people that came into the doors. So our per capita ratio is 17.88. And so our taxpayers saved almost $21,000 for the month of July at the library. all right to our fire marshal he completed two burn pile inspections he had 45 burn permit renewals and then a total of 180 active burn permits for the month of july we are under a burn ban now we followed in alignment with the county i know that it did rain but it's still dry out there Be that as it may, we had two fires within the Santa Fe City limits. He did one fire plan review, and he completed five fire safety inspections. As far as code enforcement goes, he had eight new cases for the month of July. He closed four cases, and then he has 19 open cases that are ongoing. All right, any questions? I know that Councilman Schrader had a couple images added in. I'm just going to scroll to them. That way you can talk if you want to. Right here.

11:46 – 12:49•Speaker 19

This is... Fourth Street. I'd like to recognize our street department and Billy Crip on. This is what the work of the new paver does. And when you have employees that are invested in the city they work for, and you give them good equipment and the equipment to do it, look at that seam right there. Look how straight that is. That's a good job. That's their second row. And you can't see the middle seam on it. You can't see the transitions when they added the new truck to the hopper. Excellent work. Excellent work. And this is what we're paying for. When we buy the new equipment and we invest in our people that do our work, you get a quality product. And I want everybody just to, you know, if you get a chance to go down Fourth Street, that's one good job. I look forward to seeing a lot more of them.

12:49 – 13:05•Speaker 5

I appreciate everything that y'all do and all of our staff day in and day out to keep Santa Fe rolling. All right. Council, any questions for Mr. Collins? Nope.

13:05•Speaker 19

Oh, I've got one more thing. One more thing. Can we add spraying? You don't have to put the streets and all, but just put your areas. Yes.

13:15•Speaker 7

Because I know y'all are hitting it. Yes, sir. We're divided up in six sections. Right. We'll start adding that. If you will.

13:22•Speaker 19

I just want to put it on there because y'all are doing it and I see it.

13:28 – 13:53•Speaker 5

All right, item number five, citizen comments. Any person with city-related business not on this agenda may speak to the council. Time is limited to three minutes in compliance with the Texas Open Meetings Act. The city council may not deliberate on the comments. Personal attacks will not be allowed, and personal matters should be addressed to the city manager during normal business hours. Looks like we have one person that signed up. Matt. Come on, Matt. Welcome. Good to see you again.

13:53•Speaker 4

It's been a while. A few things. I like to Thanks, Billy. He did my ditches. Appreciate it. Setting the call work, man. It's just nice.

14:03•Speaker 5

If you'll just state your full name, Matt, for the record. It's Matt Bell, 3502 Avenue and a half, Santa Fe.

14:08 – 14:59•Speaker 4

I just got a couple questions. Now that the Centerpoint fiasco is done, are they looking at putting any deceleration lanes in to turn into their place or not? That's one. The other one, again, there's going to be more truck traffic. We probably need to get a turn lane on 1764 to turn to 646. There's nothing there. You stay at the light forever. These trucks will be coming around. It's going to be a big, big hassle. The other thing was, I guarantee you they're going to use this place for a stand down period when we have storms. There's going to be a bunch of people there. So my issue is, Are they going to have their own diesel tanks and no gas tanks for their own trucks so they don't have to use what we have here? Because if I need diesel and I've got three trucks in front of me from Centerpoint, that's going to be a bad day.

15:03 – 15:32•Speaker 19

I was making sure we kind of cover the area that when all doesn't come up say what happened here I just like to know that we're all on the same page Back area off Avenue Q. Yeah, that is for if we have a storm like that and we do bring in stuff It's a huge You can't see it now for they put the big fence up and it looks great if you go down that if you would look at it the fence and the landscape and they did it's a great job, but We took a tour of it, and that whole fact, I mean, it's huge, and that's exactly what it is. That's fair enough.

15:32 – 16:17•Speaker 5

Matt, I'll be happy to visit with you about it. I've got answers to all of these questions. Okay. Just unfortunately, since it's not on the agenda, we can't discuss it. But I'll get with you, of course, or Mr. Collins, either one of us. All these have been addressed. I appreciate it, Matt. Thanks for coming. It's not a requirement to sign in. Is there anybody else that would like to come and address council for any item not on the agenda? All right, we will move on to A, business one, the consent agenda, consideration and possible action. Is there any council members that are requesting any of these items to be pulled off of the consent agenda? If not, I'll entertain a motion.

16:18•Speaker 18

I make a motion to approve the consent agenda as presented. Second.

16:21•Speaker 5

It's been moved and seconded to approve the consent agenda as presented. Natalie, roll call, please.

16:26•Speaker 15

Council Member Jeanette?

16:28•Speaker 15

Council Member Dickerson? Yes. Council Member Marks?

16:31•Speaker 15

Council Member Schrader?

16:33•Speaker 15

And Council Member McKinney?

16:35•Speaker 5

Yes. Motion passes. Thank you, Council. All right, item number two. Is Jason Gerringer here? Yeah, he just walked in. You're right on time.

16:44•Speaker 5

So... You can come right on up here to the podium.

16:53 – 17:07•Speaker 5

And address council, let me go ahead and read the item here. All right. Consideration and possible action. Approval of an Eagle Scout project proposal from Jason Gerringer for the installation of flag retirement boxes at a designated sitting location.

17:09 – 18:28•Speaker 9

Hello, I'm Jason Gerringer. I'm a part of Troop 628 and my Eagle Scout project is flag retirement boxes. After 4th of July, after Memorial Day, you can drive down the street and you see flags on the ground or people just burn the flags at random. That's not the proper way to do it. So with this, I am proposing the idea that I can install a wooden box on the other side of the counter here or anywhere it's up for debate. and that would serve as a place to where we can rest the flags until they are properly burned and the troop 628 i will come and check it regularly regularly but after i graduate and i am no longer able well i'm still able to but if i go off to college the troop will then take it over and they can come and check it that way you're not stranded and we don't just abandon the project they will also maintain the box and so will i It's just it's a way of showing respect towards our veterans. You shouldn't just burn a flag. There's a proper way to do it. And there is another scout named David. He's installing a fire pit to actually burn the flags and not here, but it's somewhere else. But the troop picks them up and then they burn them in that fire pit. Any questions?

18:29•Speaker 7

Okay, so y'all gonna be doing that y'allself? You'll have your own ceremony by y'all's? Yes, sir.

18:38•Speaker 7

And you said a wooden box?

18:39•Speaker 9

Yes, sir. It would be in the city hall.

18:43 – 18:54•Speaker 2

We could have it behind the counter. Like that way that they could, if somebody brings the flag to us, that we could take it and put it in that box and let Mr. Garinger know when we get some. We don't have a problem with that.

18:55•Speaker 5

Jason, when would this project be completed? What's the estimated duration of it?

19:01 – 19:26•Speaker 9

So my project, I'm going to get the, I'm doing an area. I already got accepted from the Knights of Columbus and I'm proposing it here now and I'm going to go to Hitchcock City Hall, sir. And so it's going to be about a week, two weeks maybe, before they let me in. But it will be completed on 9-11-26. That's when I'm going to have it fully completed.

19:26•Speaker 5

That's pretty quick. Pretty quick turnaround.

19:31 – 19:44•Speaker 7

That was a tough date. Yeah. 9-11, that's pretty honorable of you for doing that. I really do appreciate that. I know it's me and Mr. McCain, you're veterans, so we really do appreciate that.

19:45•Speaker 5

Yes, sir. Council, do you have any other questions? I'm sorry.

19:51 – 20:06•Speaker 1

It might be a little longer. This was done back in April because he has to have clearance through the Boy Scouts still after he gets a paperwork signed from both of y'all, which I'm not sure if he remembered. Okay. So the time limit might be, that was the original plan.

20:07•Speaker 1

It might be a little farther. Okay. Because everything has to be signed.

20:10•Speaker 7

Oh, that's fine. This went over, yeah. I'm sorry.

20:12 – 20:31•Speaker 1

Everything has to be signed off correctly. Like you have to sign off the other, Hitchcock has to sign off, all the paperwork has to be in order before, and then he has to do funding because all Boy Scouts projects get funded. And then he can keep going. But he can keep you updated as to when the project would actually be completed.

20:32•Speaker 7

Because that really is, sometimes it's hard just to find a place to take flags to. So that's going to be fantastic.

20:39•Speaker 5

Especially with the VFW not being open.

20:43•Speaker 13

I move to approve the Eagle Scout project proposal from Jason Garrett. Garinger, for the installation of flag retirement boxes at designated city location.

20:51 – 21:04•Speaker 5

Second. It's been moved and seconded to approve an Eagle Scout project proposal from Jason Garinger for the installation of flag retirement boxes at his designated city location. Council, any discussion? Hearing none, Natalie, roll call, please.

21:04•Speaker 15

Council Member Marks.

21:06•Speaker 15

Council Member Schrader.

21:07•Speaker 15

Council Member McKamey.

21:09•Speaker 15

Council Member Jeanette. Yes. And Council Member Dickerson.

21:11•Speaker 5

Absolutely, yes. Motion passes. Thank you, Jason. Great job, young man. Thank all of you. Have a good day. Thank you. Thank you, Jason. Appreciate you investing back into the city of Santa Fe.

21:23 – 21:38•Speaker 5

All right, next item of business, number three, consideration and possible action appointment or reappointment of three members and one alternate to the Zoning Board of Adjustment to each survey two-year term to expire July 2028. Melinda.

21:38•Speaker 12

Good evening.

21:39•Speaker 5

Good evening.

21:40 – 22:17•Speaker 12

So we have three board members that are coming up or that expired in July along with an alternate position. So we reached out and solicited for applications for these positions. So we got seven applicants. Mr. Clark said he would like to be considered for reappointment. And then we do have Jeffrey Myers, who is in alternate number two. If y'all wanted to move him up to a board position, then you would just need two board positions and two alternates.

22:19•Speaker 7

So there's two board members and one alternate. That's what's trying to fill, right?

22:24•Speaker 12

If you move the number, yes. So you would need two and two.

22:30 – 22:44•Speaker 5

Are there any applicants here that would like to come up and introduce yourself to council? No? Okay. Just wanted to give you that opportunity. I know there's some of y'all out there.

22:44•Speaker 13

Belinda, have there been attendance issues with the board?

22:52•Speaker 12

Well, I wasn't here one last time we had a meeting.

22:56•Speaker 5

We haven't met in over a year.

22:58•Speaker 12

It has been over. Actually, I was here last time.

23:01•Speaker 5

Nothing came back.

23:03•Speaker 12

Nothing came back. We haven't had a meeting yet.

23:11 – 23:26•Speaker 13

Well, it sounds to me that we need people that want to actually be there, and that can be there, right? I move to appoint Cole Dixon as one of the positions for the Board of Adjustments.

23:32•Speaker 5

Just saying myself, we're just going to do just one?

23:34•Speaker 13

I'm just doing one, yes.

23:39 – 23:55•Speaker 5

Motion on the floor to appoint Cole Dixon to one of the positions. Is there a second? I'll second it. It's been moved and seconded to appoint Cole Dixon as one of the members of the Board of Adjustments. Is there any discussion? Natalie roll call please.

23:56•Speaker 15

Council Member Dickerson?

23:58•Speaker 15

Council Member Marks? No. Council Member Schroeder?

24:01•Speaker 15

Council Member McKamey? Yes. And Council Member Jeanette?

24:04•Speaker 5

No. That motion fails.

24:09•Speaker 7

I move to appoint Haley Worthen as our position.

24:18 – 24:29•Speaker 5

Second. There's a motion and a second to appoint Haley Worthen to the Board of Adjustments as a regular member. Is there any further discussion? Natalie, roll call, please.

24:29•Speaker 15

Council Member Schrader?

24:32•Speaker 15

Council Member McKamey?

24:34•Speaker 15

Council Member Jeanette?

24:36•Speaker 15

Council Member Dickerson?

24:37•Speaker 15

And Council Member Marks?

24:38 – 24:51•Speaker 5

Yes. Motion passes 4 to 1. Haley Worthen is appointed as a board member. All right. We've got two other board members and an alternate.

24:51•Speaker 19

I move to appoint Tim Clark to reappoint Tim Clark to the board. Second.

24:59•Speaker 5

It's been moved and seconded to reappoint Tim Clark as a full board member to the Board of Adjustment. Is there any discussion? Natalie, roll call, please.

25:08•Speaker 15

Council Member McKamey.

25:10•Speaker 15

Council Member Jeanette.

25:12•Speaker 15

Council Member Dickerson.

25:13•Speaker 15

Council Member Marks.

25:15•Speaker 15

And Council Member Schrader.

25:16•Speaker 5

Yes. Motion passes. All right. There's one more. We've got one more board member and an alternate. Who was the alternate?

25:25•Speaker 7

Jeffrey Myers was.

25:26•Speaker 18

Yeah, so I'll make a motion to move Jeffrey Myers to a position on the board.

25:31•Speaker 5

Second. It's been moved and seconded to appoint Jeffrey Myers to a full member on the Board of Adjustments. Is there any discussion?

25:40•Speaker 15

Natalie roll call please. Yes. Yes. Yes. Yes.

25:50•Speaker 5

Motion passes. Thank you. Council.

25:51•Speaker 13

I moved to appoint crystal whole share as the alternate for the board of adjustments.

25:57 – 26:10•Speaker 5

So it's been moved and seconded to appoint crystal whole share as an alternate We've got to do two alternates.

26:10•Speaker 14

We're going to do two alternates to move Jeff up.

26:15•Speaker 5

Correct. So this would be alternate one or alternate two?

26:23•Speaker 5

So it's been moved and seconded to appoint Crystal Holscher as alternate number one to the Board of Adjustments. Is there any discussion? Natalie, roll call, please.

26:33•Speaker 15

Council Member Dickerson?

26:35•Speaker 15

Council Member Marks?

26:37•Speaker 15

Council Member Schrader?

26:39•Speaker 15

Council Member McKamey? Yes. And Council Member Jeanette?

26:42•Speaker 5

No. Motion passes 3-2. All right, Council, we've got one more alternate.

26:52•Speaker 18

I'll make a motion to appoint Dennis Combs as alternate number two to fill the remainder of the unexpired two-year term.

27:01•Speaker 5

Second. It's been moved and seconded to appoint Dennis Combs for alternate two to the Board of Adjustments.

27:19 – 27:39•Speaker 12

Go ahead. OK, so y'all voted for Haley and Tim to be board members? So there's only going to be three board members if we only do Jeffrey. Correct.

27:40•Speaker 14

So we moved him up. So now right now we have three positions on the table. But really it should be two positions and two alternates because we moved Jeffrey up.

27:52•Speaker 2

So y'all need to move one of the people that y'all voted for needs to go to an alternate position if y'all want Jeffrey Meyer to be moved up.

28:02•Speaker 7

Okay, the first one we voted for was Haley Worthen. Okay, and the second one?

28:10•Speaker 2

Who serves on there now.

28:12•Speaker 7

Which is, he's already board. So that fills that, right? We have one more board.

28:18•Speaker 19

I move to make Haley Worthen. Just wait a minute. There's already a motion on the floor.

28:21 – 28:38•Speaker 5

Okay. So it says to appoint or reappoint three members and one alternate. That's what we've done so far. We've appointed three members and one alternate. Three members, Haley, Tim Clark, and Jeffrey Myers, and then one alternate is Crystal. Well, we moved Jeffrey up.

28:38 – 29:10•Speaker 14

So now we have to fill his position. Okay. Because right now we have appointed three members, but one of those members was an alternate that we moved up. Right. So he and Tim Clark is staying on. So technically if you wanted to put Jeffrey Myers and Tim Clark, those would be the two positions. And then we have Haley on the table also, and then Crystal Holscher, which could be the alternates, however y'all want to do that. That's all I'm saying. We have enough people.

29:10•Speaker 13

Well, I thought that it was at Tim filled one, Jeffrey filled one, and Haley filled one.

29:16•Speaker 14

We're not having three positions because Jeffrey moved from alternate two to a position. So now alternate two is open.

29:23•Speaker 13

He was the third, so he's probably should stay. I'm not getting this. Okay, so...

29:31•Speaker 14

There were three positions.

29:34 – 29:47•Speaker 14

Okay. That were up for reappointment. Okay. Jeffrey and someone else are alternate. Well, Jeffrey, y'all decided to move to a position. That now makes one. That takes away the third.

29:48•Speaker 19

Correct. So we only have one new person.

29:52•Speaker 14

So now you have two. I don't know. Now I'm confused.

29:56 – 30:13•Speaker 19

Since you moved, did y'all move? Jeffrey up. Jeffrey up. That just takes one of the three. Then you still need two positions. You kept him on. Kept him on. That's what it is. We have one position and two alternates.

30:13•Speaker 7

So he didn't move up because he picked Haley and Clark.

30:18•Speaker 13

All right. So regardless, we needed three permanent and one alternate, right?

30:24 – 30:40•Speaker 13

So you take that one alternate. and move it here. So now you have two alternates that you need, and you still have two available seats, even though one was already taken by the alternate. So the two that we listed are still. That's okay. That's right. Okay.

30:40•Speaker 2

So we're good. We're good.

30:42•Speaker 14

I think so. We'll have to do an alternate two then.

30:45•Speaker 2

Yeah, alternate two. So we'll have. We have the one alternate. That's the motion that's on the floor now. Yes. So you have Crystal Holster as alternate one, and then alternate two, that's who y'all recommend.

30:55 – 31:12•Speaker 16

You probably should bring that back at the next meeting because the agenda item says appoint three members and one alternate. So you can't appoint a second alternate tonight.

31:15 – 31:27•Speaker 5

All right. Then that motion was out of order. So we are done. And we'll have to bring an item on the agenda for the alternate two position.

31:27•Speaker 3

Okay, so where do we stand? We stand with Tim Clark.

31:29•Speaker 13

Bailey, Tim, Jeffrey, and then Chris was the alternate.

31:32•Speaker 3

And Chris was on it. So Dennis is off until next month. Until next month.

31:41•Speaker 12

That was only the first one.

31:46•Speaker 5

Oh, Lord. So as it stands, Haley Worthen, Tim Clark, and Jeffrey Myers have been appointed as full members. Crystal Holsher is alternate one.

31:57•Speaker 5

That leaves alternate two vacant. We'll have an item on the agenda next month to fill that.

32:02 – 33:02•Speaker 5

All right. Clear as mud. All right, item number four, public hearing request to amend ordinance number 02-03, commonly known as the City of Santa Fe Unified Development Code or the Santa Fe Zoning Ordinance 2002 edition. The official zoning map adopted under section 3.08 by adding a conditional use permit to allow a 195-foot skyway telecommunication tower located on a 100-foot by 100-foot tract at the northwest corner of the property located at 10920 4th and 1⁄2 Street, Santa Fe, Texas, 77510, legally described as Abstract 118 J. Haggard Survey, Outlot 41, Altaluma Outlots. It is 7.31 p.m. I'll open up the public hearing. Is there anybody here to speak on this agenda item? I am, sir. All right. Please come on up and state your name for the record.

33:06 – 33:19•Speaker 17

I'm the owner of that property, and I wanted to know if the city council had any questions in reference to me being the owner. If there are not any, I'll be seated. No?

33:21 – 34:20•Speaker 5

Okay. Well, what's it going to be? Actually, this is just a public hearing. Once we close the public hearing and announce the agenda item, then council will be able to talk about it. Public hearing is just for anybody from the public to make any statements or ask any questions that they want to. Is there anybody here that would like to speak on it? Hearing none, I'll close the public hearing at 7.32. Item number five, consideration and possible action. First reading of an ordinance of the City of Santa Fe, Texas, submitting ordinance number 02-03, commonly known as the City of Santa Fe Unified Development Code. The Santa Fe zoning ordinance 2002 addition, the official zoning map adopted under section 3.0a by adding a conditional use permit to allow 195 foot Skyway Telecommunication Tower located at 100 by 100 foot track Northwest corner of the property located one zero nine two zero fourth and aft Street, Santa Fe, Texas 77510 Legally described as abstract 118 J haggard survey outlaw 41 out to them outlaw Providing for the incorporation of preamble or appeal a cause of severability cause an effective date.

34:20 – 34:53•Speaker 12

So Okay, so this is a property that came to planning and zoning for conditional use permit and It's zoned for agricultural residential, so in order to have a telecommunication tower, it has to have a conditional use permit. In the planning and zoning meeting, it was approved unanimously from everybody, so we're here for your approval.

34:54•Speaker 7

So it's just a... We're going to neighborhood commercial?

35:01•Speaker 12

No, it's agriculture residential. But to be able to have a tower, it has to have a conditional use permit. So they don't need a zone change.

35:10•Speaker 7

OK. So you can have a tower and an AR? Yes.

35:14•Speaker 12

With the conditional use permit.

35:16•Speaker 19

What are the bordering properties?

35:19 – 35:37•Speaker 12

Yeah. So I believe Lagomar is behind it. There's the drainage ditches separates them. And then if you know where Avenue D, it kind of cuts off off 1764. You turn down Bruce Hall, it's like one of the last properties in the city limits.

35:37•Speaker 19

So it's off of Bruce, is it then to Bruce Hall? So where Bruce Hall is, four and a half.

35:43•Speaker 7

That last road to the left.

35:45•Speaker 19

Back to the right.

35:47•Speaker 14

I have a question. I thought we couldn't do conditional use permits in AR. We can.

35:59•Speaker 12

Do you have the matrix? It should be in that packet.

36:17•Speaker 18

You can. It's just contingent on what it is.

36:22•Speaker 2

It's the type of use for the, because we'll get to the next.

36:34•Speaker 3

This one will go for it, right? That get clarified? Can be?

36:37•Speaker 7

I didn't think it could.

36:45•Speaker 2

If it's allowed in our matrix in AR and it's under our matrix.

36:54•Speaker 2

I know you are thinking of an agenda item that's coming up, but we'll discuss that when we get there.

37:00•Speaker 7

No, I'm thinking about this one. I mean, I ain't thinking about nothing. I just don't remember it being in AR.

37:10 – 37:48•Speaker 5

There are certain particular uses that are allowed by conditional use permit. One of them in AR. One of them is a vet office. That's right. I know there's several of them. So you can't have a conditional use permit. an ar but only for certain uses correct blanket conditions for anything okay communications tower is allowed in uh by conditional use in an ar those other properties that surround it is there any chance of it being developed so there are residential lots around but the distance between them are

37:50•Speaker 3

Probably was only allowed to know maybe six letters because they're so far apart So you're gonna restrict those people that they decide to build I understand what you're saying

38:12 – 38:24•Speaker 12

That's a good question. Did you know that Lamar is more than like there's a drainage ditch behind there. So that's, you know, out the question. The other one is developed. There's a house on that lot on four and a half.

38:25•Speaker 3

That's two sides.

38:26•Speaker 12

The other side is his property for his houses.

38:33•Speaker 5

Yeah, because it's just 100 foot by 100 foot cut out of a big property.

38:38•Speaker 19

You cut a tract and you had one platted in your property, right? Okay.

38:42•Speaker 5

Another thing to consider is the... Sir, if you'll please come up and speak into the microphone so that the folks online in the record can hear you. Sorry about that. That's okay.

38:52 – 39:09•Speaker 17

Another thing to consider, too, is you have some light. The line has some light poles about 200 feet also in the back of the property where the tower will be located. The property got six or seven of them back there, big towers.

39:11•Speaker 19

You're the guy with the bulldog, aren't you? Sir? The little bulldog that gets out? The dog's name is Ricky. Thank you.

39:20•Speaker 3

It wouldn't obstruct any of the other properties surrounding that.

39:23•Speaker 13

No. And there's no complaints from any other property owners or anything? No one showed up at the place.

39:29•Speaker 7

And no letters, no nothing?

39:31•Speaker 12

Oh, there was letters sent. Not many, but there were.

39:34•Speaker 7

Who were they?

39:36•Speaker 7

Who did they say?

39:39 – 39:51•Speaker 12

There should be one. I thought there was one in your packet. It was a public hearing letter sent out letting all the residents within 200 feet.

39:52•Speaker 19

There was no response.

39:53•Speaker 2

There was no response from the citizens. It was just the letter she sent out that we're required to. Yeah, we gave notification.

40:00•Speaker 7

Can you come show me on this map where it's at? This was 4 1⁄2 Street, right? Yes, sir. It was 4 1⁄2. Going north.

40:08•Speaker 19

Almost to the end on the left.

40:11•Speaker 7

Right there in the end. That's a dead end street. It's right here.

40:13•Speaker 12

It's right here, John.

40:16•Speaker 7

It's off on 76th Street.

40:18•Speaker 5

Go to Bruce Hall, take a right. 646 North, take a right. No.

40:23•Speaker 19

No, it's off 76th. It's the other 4 1⁄2.

40:25•Speaker 14

Yeah, it's behind me.

40:27•Speaker 19

Yeah. Oh, off of Bruce Hall. Yeah. Go to the end of Bruce Hall, take a right.

40:32•Speaker 7

Oh, off of Bruce Hall.

40:32•Speaker 19

And it's way at the end on the left.

40:35•Speaker 12

It's going to be right here in this corner.

40:41•Speaker 7

What's the distance between where it's going to be to those houses?

40:46•Speaker 3

In those houses?

41:12•Speaker 7

I know we don't care.

41:12•Speaker 12

Probably a good 500 foot. A good 500 foot. The tower's going to be here?

41:18•Speaker 7

Yeah. In that corner, right? You said the corner? Correct. Where's the home? Home's here.

41:27•Speaker 19

He's right there on that whole property? Mm-hmm. He's just barely in.

41:31•Speaker 7

You're not in the open field, are you? You got trees on your property?

41:37•Speaker 7

Open field. So he's here. That's it.

41:40•Speaker 18

He's going to be in that back corner.

41:45•Speaker 3

If we don't allow it.

41:52•Speaker 7

And you contacted this house here? One next to it? Mm-hmm. No response?

42:00•Speaker 12

Actually, no, those people.

42:02•Speaker 3

No response from them? No.

42:09 – 42:23•Speaker 16

It does say in the zoning matrix that the listed use is radio, TV, cellular tower, transmission tower. It's marked as C, and that's in the AR column. So that means with a conditional use permit, you can do it.

42:26 – 42:42•Speaker 5

If that thing falls down, the way that they anchor them? I know, but that's always that way. There'll be a lot of other things falling down, too. I understand what you're saying. I'm not trying to.

42:42•Speaker 3

Yeah, I know what you meant.

42:45•Speaker 19

I know where this property is at. This is a big piece of property. It's not going to fall on anybody.

42:51•Speaker 18

I make a motion to approve the conditional use permit as presented. Second.

42:55•Speaker 5

It's been moved and seconded to approve the conditional use permit as presented. Council, is there any further discussion?

43:13•Speaker 15

Council Member Dickerson?

43:15•Speaker 15

Council Member Marks?

43:16•Speaker 15

Council Member Schrader?

43:18•Speaker 15

And Council Member McKinney?

43:19 – 45:13•Speaker 5

Yes. Motion passes 3-2. Thank you, Brandon. All right. Item number six, public hearing request to amend ordinance number 02-03, commonly known as the City of Santa Fe Unified Development Code or the Santa Fe Zoning Ordinance 2002 edition. The official zoning map adopted under section 3.08 by adding a conditional use permit to allow low impact use of office-based space of the existing structure and to lease office space for administrative use only located at 5330 Avenue in Santa Fe, Texas, 77510, legally described as abstract 47L Crawford survey, part of Outlots 287, 287-1, Altaloma Outlots. All right, so it is 742 p.m. I'll open public comment or public hearing. Is there anybody here that is here to speak about the property at 5330 Avenue Inn? Going once. Going twice. All right. 743. Public hearing is now closed. Item number seven, consideration and possible action. First reading of an ordinance of the City of Santa Fe, Texas, amending ordinance number 02-03, commonly known as the City of Santa Fe Unified Development Zone and the Santa Fe Zone Ordinance. 2002 addition, the official zoning map adopted under Section 3.08 by adding a conditional use permit to allow low-impact use of office-based space of the existing structure and does this office-based permit show use only? Located at 5330 Avenue North, Santa Fe, Texas, 77510, legally described as abstract 47, Al Crawford survey, plat of outlots 287, 287-1, outlots and providing for the incorporation of preamble, a repealer clause, a separability clause, and an effective date. Belinda.

45:15 – 46:02•Speaker 12

Okay, so we are back with Avenue N. So he brought this back to planning and zoning, not for a zone change. He wanted to just do a conditional use permit. However, what he was wanting to do was not allowed in AR. He has to get a zone change. So planning and zoning denied it because it's not allowed. And here we are for y'all to make y'all's decision on what y'all are wanting to do. However, I did reach out to him after the meeting. Planning and zoning wanted me to find out what his plans were. Is he gonna do a zone change? He has decided he no longer wants to pursue that route. He's going to leave it as AR and try to figure out what he can do on that property with AR.

46:04•Speaker 7

MR. This is no. MS. Sir? MR. This could be no, then?

46:10•Speaker 5

Correct. MR. We still have to act upon it.

46:13•Speaker 12

MS. Yeah, we have to do a, because it was already posted.

46:24•Speaker 5

But if we passed it, we'd be violating the ordinance that we passed.

46:30•Speaker 18

So I make a motion to deny the conditional use permit. Second. Second.

46:34•Speaker 5

It's been moved and seconded to deny the conditional use permit as presented. Council, is there any further discussion? Natalie, roll call, please.

46:44•Speaker 15

Council Member McKamey?

46:46•Speaker 15

Council Member Jeanette?

46:48•Speaker 15

Council Member Dickerson?

46:49•Speaker 15

Council Member Marks? Yes. And Council Member Schroeder?

46:52 – 48:30•Speaker 5

Yes. Motion. All right. Public hearing, item number eight, public hearing, request to amend ordinance number 02-03, commonly known as the City of Santa Fe Unified Development Code or the Santa Fe Zoning Ordinance 2002 edition. The official zoning map adopted under section 3.08 by changing the zoning classification at 12335 2nd Street, Dickinson, Texas, 77539, legally described as abstract 1M Austin survey, part of lots 119 from ag residential to neighborhood commercial. It is 7.46 p.m. I'll open public hearing. Is there anyone here that would like to speak on the 1-2-3-3-5 Second Street property? Going once, going twice. 7.46 p.m., public hearing is closed. Item number nine, consideration and possible action. First reading of the ordinance of the City of Santa Fe, Texas, amending ordinance number 02-03, commonly known as the City of Santa Fe Unified Development Code. Or the Santa Fe Zoning Ordinance 2002 Edition, the official zoning map adopted under Section 3.08 by changing the zoning classification at 12335 2nd Street, Dickinson, Texas, 77539, legally described as abstract 1M Austin Survey, part of Watts 119, from ag residential to neighborhood commercial, and providing for the incorporation of preamble, a repealer clause, a severability clause, and an effective date. Belinda.

48:31 – 49:08•Speaker 12

So this property was brought to planning and zoning for a zone change to neighborhood commercial for selling purposes only. There was no plan on what they wanted to do with the property. They had a buyer that was interested in the property under AR. They came to the meeting. asked for it not to be rezoned, but she wanted to continue with it in case that buyer backed out. After that meeting, that buyer did back out, and now she wants to try to pursue the zone change. It was denied at Planning and Zoning.

49:10 – 49:36•Speaker 2

And its staff recommended that we deny this request, and the reason being is because if we approve this now, and whoever the buyer is, they can really put what is ever allowed under Neighborhood Commercial. I think it would be in good judgment on City Council's part to deny because I'd like, if somebody does want to turn it into neighborhood commercials, that they come before us after they purchase the property and to tell us exactly what they want to put there on the property.

49:38•Speaker 19

How close is this property to 646?

49:43•Speaker 12

Is that Chevron?

49:45•Speaker 2

It's right behind the gas station, yes.

49:46•Speaker 19

Behind that canal?

49:48•Speaker 2

That's correct, yes. No, it's before it. Before it, yeah, before it. It's directly behind.

49:52•Speaker 19

It's the land behind from, okay, between the Chevron and.

49:56•Speaker 2

It's the house that's for someone that's got like the detached garage right there, yeah.

50:01•Speaker 19

But none of it touches 646? No.

50:03 – 50:15•Speaker 5

No, it's all 2nd Street. And 2nd Street gets a lot of use as it is. Just being a residential thoroughfare, I can't imagine what the road maintenance would turn into if we had some type of commercial development there.

50:15•Speaker 7

Yeah, we approved on Postal, which is right past Ditch. I regret it.

50:21•Speaker 18

So I'll make a motion to deny the zone change.

50:23•Speaker 5

Second. It's been moved and seconded to deny the zone change as presented. Council, is there any further discussion? Hearing none, Natalie, roll call, please.

50:32•Speaker 15

Council Member Schroeder?

50:33•Speaker 15

Council Member McKamey?

50:35•Speaker 15

Council Member Jeanette?

50:37•Speaker 15

Council Member Dickerson?

50:38•Speaker 15

And Council Member Marks?

50:39 – 51:51•Speaker 5

Yes. Motion passes. Item number 10, public hearing request to amend ordinance number 02-03, commonly known as the City of Santa Fe Unified Development Code or the Santa Fe Zoning Ordinance 2002 edition. The official zoning map adopted under Section 3.08 by changing the zoning classification at 2529 FM 646 Road North, Santa Fe, Texas, 77510, legally described as abstract 1M Alston survey, lot 56, 56-0 of F.H. Thamen, subdivision 9.43 acres, from neighborhood commercial to highway commercial. All right. It is 7.50 p.m. I open up for public hearing. Is there anyone here to speak on 2529 FM 646 Road North? Going once, going twice. 7.50 p.m., public hearing is closed. Item number 11. Council, before I get to item number 11. Would it be appropriate to have the city secretary read the agenda items, or does that have to be done by the mayor?

51:51•Speaker 13

The mayor should do it. You're doing such a fantastic job.

51:59 – 52:33•Speaker 5

I might have to call in the public hearing request to amend ordinance number 02-03, commonly known as the City of Santa Fe Unified Development Code. For the Santa Fe Zoning Ordinance 2002 edition, the official zoning map adopted under Section 3.08 by changing the zoning classification of 2529 FM 646 Road North, Santa Fe, Texas 77510, legally described as abstract 1M Austin Survey Lot 56, 56-0, FH Thayman Subdivision 9.43, acres from neighborhood commercial to highway commercial. Belinda.

52:35 – 53:10•Speaker 12

okay so this was brought to planning and zoning the gentleman wants to change it from neighborhood commercial to highway commercial for multi-tenant offices although he can put the multi-tenant offices under neighborhood commercial with the conditional use permit but i believe he's wanting to open up the door on what type of tenants he can have with it being neighborhood highway commercial And he is directly on FM 646. It was passed during planning and zoning. So now it's up to y'all.

53:13•Speaker 19

Where exactly is this 944?

53:16•Speaker 5

Just south of on the way. Property adjacent to it.

53:21•Speaker 7

You know where the hay pasture is right there on the 6th?

53:27•Speaker 13

I move to approve the rezoning as presented.

53:34 – 53:54•Speaker 5

Councilor, are they allowed to say as presented, or do they have to read the full motion? It's been voted and seconded to approve the zone change as presented. Council, is there any further discussion? Hearing none, Natalie, roll call, please.

53:54•Speaker 15

Council Member Marks.

53:56•Speaker 15

Council Member Schrader.

53:57•Speaker 15

Council Member McKamey.

53:59•Speaker 15

Council Member Jeanette.

54:00•Speaker 15

And Council Member Dickerson.

54:01 – 55:47•Speaker 5

Yes. Motion passes. Thank you. All right. Item number 12, public hearing. Request to amend ordinance number 02-03, commonly known as the City of Santa Fe Unified Development Code or the Santa Fe Zoning Ordinance 2002 edition of the official zoning map adopted under section 3.08 by changing the zoning classification at property ID 191606, legally described as abstract 149E Mitchell. Survey part of Outlaw 150-150-3, Altaloma Outlots from Ag Residential to Neighborhood Commercial. It is 7.53 p.m. I open the public hearing. Is there anyone here that would like to speak on this property? This is the property that is at the dead end of 22nd Street. Going once. Going twice. All right. 7.53 p.m. Public hearing is closed. Item number 13, consideration of possible action, first reading of an ordinance of the City of Santa Fe, Texas, amending ordinance number 02-03, commonly known as the City of Santa Fe Unified Development Code or the Santa Fe Zoning Ordinance 2002 edition, the official zoning map adopted under section 3.08, by changing the zoning classification at property ID 191606, legally described as abstract 149 East Mitchell Survey, part of Outlaw 150-150-3. Altaluma Outlots from Ag Residential to Neighborhood Commercial and providing for the incorporation of preamble and repealer clause and severability clause and an effective date. Belinda.

55:47 – 56:20•Speaker 12

Okay, so this applicant put in the application to change it from AR to Neighborhood Commercial for a live fire training facility. There were written protests for planning and zoning And due to our ordinance, three fourths of the board had to approve it or be for it to pass the motion. It was a three to three vote. So all the votes were not there to let that be approved. So we are here for y'all.

56:22 – 56:59•Speaker 16

Wonderful, go ahead. The reason that we are here is that the council public hearing was previously published. And so my recommendation was to keep it on the agenda to give due process. And y'all certainly can turn it down, but whether you fully approve this or fully deny it or have a split vote, it really makes no difference because the protest was filed, which required a super majority of both boards, the planning and zoning in this board. So it effectively died at P and Z. So you might as well just go ahead and for a formality, just go ahead and deny the motion and move on.

57:02•Speaker 13

I move to deny the rezoning as presented.

57:05•Speaker 5

Second. Who was that, second?

57:09 – 57:20•Speaker 5

Rusty, okay. It has been moved and seconded to deny the rezoning as presented. Council, any further discussion? Hearing none, Natalie, roll call, please.

57:20•Speaker 15

Council Member Jeanette?

57:22•Speaker 15

Council Member Dickerson?

57:23•Speaker 15

Council Member Marks?

57:25•Speaker 15

Council Member Schrader?

57:26•Speaker 15

And Council Member McKamey?

57:27 – 57:39•Speaker 5

Yes. Motion passes. Thank you. Take a break. I could use a bottle of water, actually.

57:49•Speaker 7

Who wrote these up? That's who he's going to throw.

57:56 – 58:10•Speaker 5

Well, the next time that we have to evaluate the city secretary's duties, I'm going to add that she will become the clerk of the council and that she'll have to read all agenda items.

58:14•Speaker 14

Put that on the calendar.

58:16 – 58:41•Speaker 5

All right, this next item was requested by Mayor Pro Tem Marks. Consideration and possible action adoption of a resolution of the City Council of the City of Santa Fe, Texas amending resolution 1993-37 budget policy section five fund balance to change the target amount for the fund balance of the city's operating expenditures. So Mayor Pro Tem, the floor is yours.

58:43 – 59:12•Speaker 18

Yeah, so three months of operating expenses is what is currently in our ordinance. And that was from 1993. And I feel like we could use some updating on that. Three months is going to go relatively quick with the cost of doing business these days, especially if we had a hurricane or emergency like that. So my request is we bump that up to the five months that we've been discussing for a bit and change that ordinance to reflect that.

59:17•Speaker 19

Where are we right now? We're about four and a half months, aren't we?

59:28 – 59:55•Speaker 6

So at the end of this year, we're projected to be at 6.1. That's the extra reserves that we're using in next year's budget for all the capital. if we take out the $500,000 that we have set aside for emergencies that council committed to or assigned, that at the end of next year, we'll have 3.7 months.

59:56•Speaker 2

What's inclusive of that with that $500,000 that we have allocated towards emergencies? What is that included in that number? What does that bring the total to?

1:00:08•Speaker 6

If we take that out. It's included.

1:00:11•Speaker 2

Oh, it's included. Okay, I'm sorry. I misheard.

1:00:13 – 1:00:31•Speaker 6

Right. So the ending fund balance will be $3.8 million, but it reduces the overall months of operation because we've set aside that $500,000. So that was unanimous, set that aside.

1:00:33•Speaker 7

For emergency storms. Oh, absolutely. That's correct. It's already been done.

1:00:38•Speaker 5

In fact, it really shouldn't even be in general reserve. It ought to be a separate budget line item for natural disaster.

1:00:44•Speaker 6

It is a separate line item on the fund balance.

1:00:48•Speaker 5

You included as unencumbered funds in the general fund.

1:00:51 – 1:01:08•Speaker 6

It's a sign since it was not a formal vote at the time. but it was a direction from council. I put it into a separate line item on the balance sheet that says for emergencies, you know, so it can't be used except for emergencies that are at the council's discretion.

1:01:10•Speaker 2

We have to come to you to extend those funds. Anyways.

1:01:14•Speaker 7

That's all. My question was, before we started to budget this year, what were we before we started spending all this money? And we're up around 6? 6. Mm-hmm.

1:01:24•Speaker 18

OK. Yeah, we took a bump.

1:01:26•Speaker 7

You made a statement of taking it down to spend money.

1:01:32•Speaker 7

The six months that I spent some money to pay for projects that we need.

1:01:36•Speaker 18

I mean, yes. Correct. Money out of capital. Right.

1:01:39•Speaker 7

So now we've got this down. Now we're at 3.7. We never. No.

1:01:45•Speaker 18

We say 3. So Rudy, does the 3.7, does that not include projected capital expenses as well?

1:01:52 – 1:02:12•Speaker 6

So it, um, it's actual does not include any additional revenue for the future. You know, that budget savings that we have. So later in the document, you'll see like four months of operating because we've included an initial 4% worth of budget savings in the revenue side, but the actual ends up being about 3.7.

1:02:13•Speaker 5

What is 3.7 again? I'm sorry.

1:02:15•Speaker 6

That's the actual fund balance months of operation.

1:02:18•Speaker 7

after everything, projects, everything is issued.

1:02:21 – 1:02:37•Speaker 6

This is total unassigned. For this year's budget? Next year's. The end of next year, which is the 27th. This one here, the one that you guys all have. 27. By the end of 27, after we spend all the money, we'll have 3.7.

1:02:37•Speaker 5

That's interesting.

1:02:43•Speaker 18

That's not what I recall from the budget meeting.

1:02:45•Speaker 5

I recall it going from like 6.5 to 5.5, something like that. It was going to be one month.

1:02:50•Speaker 18

Yeah, 5.2 is what I recall from the budget meeting.

1:02:54•Speaker 5

We were talking about pulling out $800,000. Right. And that was essentially going to be a month's worth of operating expenses, roundabout. That's what I remember.

1:03:04•Speaker 18

I don't know how we got from 5.2 to 3.7. No, I don't either.

1:03:08•Speaker 2

And I think, Rudy, this one I want you to clear up on that. 500,000, you're saying that's included in the 3.7, that 500,000 is included in the 3.7?

1:03:16•Speaker 6

Well, if you put it back in, it goes up to 4.2. Put that 500,000 back in, it goes up to like 4.7. What's the reason for the separation? I don't think I would call it $500.

1:03:32 – 1:05:28•Speaker 5

Well, the the the reason for that separation was is that roughly? 500,000 was all of the money that was reimbursed to us by FEMA because we used our employees Salary that was already budgeted So when I and I think council agreed what we agreed is is that we didn't want that to turn into a slush fund and just buy a Bunch of stuff we wanted to put that back in case we got into another hurricane cool because the the really scary And I say I shouldn't say scary the very concerning situation that I found myself in at the table with Natalie and our former city manager and Billy was When barrel hit and we were trying to decide do we call it debris removal contractors ourselves well You can't ever assume that the federal government's going to reimburse because it's not guaranteed. They have to decide that they want to do it. And so will the situation ever occur that FEMA's not going to come in and bail us out? Probably not. But it could, right? Or it could take years and years and years. Now, luckily with Rudy, you know, I think we were the first government entity to receive any refunds based on our reporting and the documentation. Everything was great. But if it's a much more catastrophic, different situation, it could be years before we get reimbursed. So I wanted to have that money set aside for another hurricane or natural disaster. Okay. you know that we could do what we needed to do and not be worried about whether we were going to make you know payroll the next month or whatever so that was kind of the the long explanation of a short story but really where's the where's the fund balance at in the budget it's on page 53. i hope there's pictures i'm guessing they're going to be graphs

1:05:32 – 1:05:58•Speaker 6

So it puts us pretty close to the same position that we were in in 2024. And I can take a look at length again on that calculation. It may be off a little bit, but I don't have a problem with having that fund balance at that same level as two years ago.

1:06:01•Speaker 18

I think what we're struggling with is to figure out how we got from the 5.2 we thought we were going to be at to 3.7.

1:06:10•Speaker 19

Well, we took 500 grand out.

1:06:12•Speaker 7

Well, that should have been. Well, you saw 4.2, 4.3.

1:06:18 – 1:07:01•Speaker 5

I thought we were at 4.5. This isn't what I like looking at. I like the graph that we have on our dashboard. i thought we were over six months and this was going to take us down to five or something it was going to be over five yeah because you wouldn't be recommending to have at least five in there if we weren't planning on having at least five in there so something from the last budget meeting changed is that not in the budget the uh where you show us the bar graph of what the the of what our general fund's going to do over the next five years

1:07:02•Speaker 6

It is not in this.

1:07:05•Speaker 5

I can't get logged into my email for some reason. Or into the Excel spreadsheet.

1:07:12•Speaker 6

But the most important number I think everybody should pay attention to is the ending fund balance at 3.8 million, or just about 3.9 million. Okay, 3.9 million.

1:07:23•Speaker 5

So the ending fund balance is 3.9, well, 3.862. What does that equal in months? You're saying that's 3.7.

1:07:38 – 1:07:51•Speaker 6

Right. So that's what the calculation has that comes in from that large spreadsheet. And I took that and I moved it directly into this document. Okay.

1:07:52 – 1:08:05•Speaker 5

So that's roughly a million dollars a month. A million dollars is one month of operating expenses for the city. Right. Is that right?

1:08:07 – 1:08:33•Speaker 6

and it's that's the way it calculates however it really should be closer to eight and a half nine and so there may be some additional expenses in there which um for previous conversations we take the three eight six two three one three and we divide that by three point seven that gives us a million and forty three so that's saying

1:08:34 – 1:09:04•Speaker 5

It's $1,043,000. You just took the 3.862313 divided by 3.7. So that gives us, that's saying that one month is $1,043,000. 868. Okay. So then explain to me how this year, 4.6 is six months.

1:09:05 – 1:10:03•Speaker 6

I mean, I know I'm an Aggie. I know I'm an Aggie. Members are tough. So one thing that I have is a cash flow analysis, which is built into my dashboard. And that should be about $800,000 or a little bit more for next fiscal year is our monthly average that we have in expenses. So the only thing that makes sense for this 3.7 is if we have additional reserve amounts that are held back that we can't spend. So this is unencumbered funds. So it's possible that this needs to be adjusted. But it's remarkably similar to fiscal year 24, which is why I didn't heed it in your mind. So what I can do is I can double check both of those to see if there's any reserve funds that have been set aside that would have brought that down.

1:10:07•Speaker 13

And I made sure to... on that, Mayor, to put it at the no new revenue rate.

1:10:15 – 1:10:26•Speaker 5

That's with that 500,000 out of that and I think it's really closer to 4.5 is really the the actual this is just it's not including even though we included in our fund balance this new software that we have does not that's really kind of closer to where we're at

1:10:42 – 1:11:06•Speaker 6

Let's just say for argument's sake that it is 4.5, and I'll have to check on the 2024 number, since these numbers are produced from the data and aren't the actual fund balances, but they're produced just from the data, and they're probably divided by a set of numbers that we determine as our operating expenses for the month.

1:11:07 – 1:12:07•Speaker 5

Well, the frustration that I have is when we come to this meeting to adopt this document and the numbers are different than the document that we've been looking at all summer. That's what frustrates me a little bit. That may be your fault. It may not be your fault. But regardless of where... You say our general fund or fund balance is going to be or not has a little bit to do with this agenda item, but it doesn't have 100% to do with it. This agenda item is just talking about what is council's policy moving forward, whether it's this year or 10 years from now, how much we want to keep in our reserve. But now I don't know that this... that I'm comfortable adopting this budget tonight, because it's certainly different than what we were presented. Or maybe I'm just interpreting it different.

1:12:08 – 1:12:45•Speaker 6

I don't know. MR. The months of operating, I will agree, It looks like it should be more like 4.5 months of operating, just based off of the numbers that we've used in the past in the current fiscal year in 2025. So I would disregard the 3.7 and the 3.9 from 2024. And I would definitely assume that it's more than the 4.5 at least. to be in line with the $800,000 approximately that we have for months of expenses.

1:12:46 – 1:12:59•Speaker 18

So Rudy, in May I was told $2.28 million for three months of operating expenses. That comes up to $760,000. So has that $760,000 now grown?

1:12:59 – 1:13:21•Speaker 6

It's going to grow every year. Because of salary increases. $760,000 is what we've used in the current year. And I just rounded up to eight because it could go up to 780. So, but that's approximately what it should be. And at that rate, we shouldn't be more than, we shouldn't be less, I should say, than 4.5 months.

1:13:21•Speaker 18

So now we're saying 800,000 a month versus the 760 or the million.

1:13:32•Speaker 6

The exact number between what our number of our months of operating is determined by how much we've spent so far this year and how much we're going to be spending next year as an average per month.

1:13:51•Speaker 7

But to what you're saying, five months is what you're saying.

1:13:57 – 1:14:24•Speaker 19

I like what we did this year. I like keeping it at four months, and then we have the money to buy the equipment to do the paving we're doing. If we had to use it somewhere else. But I know, I mean, that's what I'm looking at. I'm looking at putting it right back into our infrastructure every year. Yep. Because we can't afford.

1:14:28•Speaker 7

We've got two of the six that are ones in May of 1963. The rest have been low.

1:14:34 – 1:14:46•Speaker 19

Five, I think, is high. I think four months of working capital. That gives us something at the end of the year to use to buy some equipment that we can't fit in our budget like we did this year.

1:14:47•Speaker 5

Rudy, does the awards that we qualify for from the GFOA, do they have any type of requirements on how many months of operating expenses you need in return? No.

1:14:58 – 1:15:46•Speaker 6

But I do believe the goal of the council is to whatever is set, any excess would be moved to that capital service fund or that capital replacement fund. so that we could use for replacements. And so we always have that fund separate inside and it can only be used for capital. And I think that that was the original design. So regardless of whatever it says here, which I know, it looks a little skewed, but whatever it is, we know that there's a large amount that we currently have in capital that we're gonna be using next year. And anything above and beyond what we projected in sales tax, that comes about is gonna be moved towards that capital replacement fund.

1:15:47•Speaker 5

Does the amount, does the number of months or the amount of money that we have in our reserve affect our bond rating any?

1:15:57 – 1:16:18•Speaker 6

Our bond rating hasn't been changed because we haven't gone out for a bond issuance since we did the Justice Center. So it still stands at AA-, and even if we stay at three months, it's not going to affect us. They just want to make sure that we are being responsible for it.

1:16:21 – 1:16:54•Speaker 18

like councilman mark said I've been in a city that had like seven months worth of operating and we did the same thing we used a large amount of that towards capital and it did not affect the bond rating at that time so I think councilman Schrader makes a good point being as we're looking at four point five versus the five point two that we initially expected I think four months would be a good target if we wanted to move to that And then we can always reevaluate it in a couple years, right, as things grow.

1:16:55 – 1:17:08•Speaker 5

And ultimately, it's just a target. So a simple majority vote of council can spend under that if they ever want to. Right. I hope they don't. Right. I don't think it'd be very responsible.

1:17:08•Speaker 7

What, one out of four? Huh? If we say four.

1:17:11•Speaker 5

Going under whatever we said, you know.

1:17:14 – 1:17:25•Speaker 7

But you're tying yourself. If you lower your goal. The higher you go, the more you're going to tie your hands with what you can spend. Right. This year, we spent a lot of money on it.

1:17:26 – 1:18:14•Speaker 6

And I'll double-check these. These are coming from the new software, the digital budget book that we produced. And they might have changed some of the addition or subtraction on this last column that we doesn't appear on our numbers on our side. This is all created in the cloud using database dump from our system. So how that actually hits, for the most part, all the departments matched up fine and the totals matched up fine. But this one sheet probably needs an additional look before we send it off to the adopted budget book and we send it off to the GFOA for our fifth year award. I just think we've been acting pretty conservative.

1:18:15•Speaker 7

We have. Just stay that way. I mean, yeah. I just hate to raise it.

1:18:22 – 1:19:22•Speaker 5

Yeah, I think it's, you know, there's a line, right? There's a line between being fiscally responsible enough to make sure that you have a savings account where you don't get yourself in the bind, but then also being good stewards of the tax dollars, not just letting them sit in a bank somewhere, but actually putting them to work for the citizens, right? So I don't think there's a right or wrong answer. I think it's just, you know, kind of a spectrum. As a council, we just kind of have to decide if we think that the three months needs to be increased or not. you know, ultimately it's a target, it's a goal. So it's not something that we're bound by. We could buy a simple majority vote, spend under whatever that target amount is. But I think it makes a statement, um, about, uh, what our goals are as a council and fiscal responsibility and, uh, paying as you go instead of going out for a bond every time we need something. So three months, four months, I think five months is probably a little, a little extreme. Um, but. I don't think there's a bad way that we could go one way or another.

1:19:23•Speaker 6

The end game is that we save money for the citizens in interest that we don't have to pay if we issue bonds. Or we do capital lease purchases, which is really high.

1:19:33•Speaker 5

Tax increases. Bonds are a tax increase. No matter how they want to paint them.

1:19:42•Speaker 18

I'll make a motion to end resolution 1993-37 to reflect four months of operating expenses versus the three months it currently.

1:19:51 – 1:20:11•Speaker 5

Second. It's been moved and seconded to adopt a resolution to change the target amount for the fund balance of the city's operating expenditures from three months to four months. Is that representative of what you wanted to do? Mm-hmm. Okay. Council, any further discussion? Natalie, roll call, please.

1:20:12•Speaker 15

Council Member McKinney?

1:20:13•Speaker 15

Council Member Jeanette?

1:20:15•Speaker 15

Council Member Dickerson?

1:20:16•Speaker 18

You only have two choices. You can't vote president.

1:20:23•Speaker 5

I think it would be cool if council was unified.

1:20:32•Speaker 15

Council Member Marks?

1:20:34•Speaker 15

And Council Member Schroeder?

1:20:35 – 1:21:04•Speaker 5

Yes. Motion passes unanimously. Thank you. All right. Moving right along like a herd of turtles. Item number 515. Consideration and possible action. First and final reading of a supplemental ordinance of the City Council of the City of San Antonio, Texas, including the 2026 annual update to the service of assessment plan for the Mulberry Farmers Public Improvement District PID, including the collection of the 2026 annual installments. Mr. Zepeda.

1:21:05 – 1:22:23•Speaker 6

Mayor, council, this is the service assessment plan updates, an annual update that allows for the city to continue to collect property taxes for the administration of the debt, $424,088, which consists of the principal interest, additional interest, and then annual collection costs for Mulberry Farms Bond, which is currently outstanding at $5. 0.013 million dollars. Of course, all of those assessments are being paid through from those collections. This document is primarily just an annual accounting and administrative update. It doesn't create anything new. It just allows us to tax those individuals for those assessments and then use that to pay for those annual installments for the bond. The total bond is $419,598, and the difference of which is the additional collection costs, which are also covered by those assessments. So it's just more of a housekeeping. Just wanted to give you a background. Can we repeal it?

1:22:27•Speaker 5

That's a rhetorical question.

1:22:34•Speaker 13

I move to approve and adopt the supplemental ordinance as presented.

1:22:38•Speaker 5

Second. It has been moved and seconded to adopt the supplemental ordinance as presented council. Is there any further discussion? Hearing none. Natalie roll call please.

1:22:48•Speaker 15

Council member Jeanette.

1:22:50•Speaker 15

Council member Dickerson.

1:22:51•Speaker 15

Council member Marx.

1:22:53•Speaker 15

Council member Schroeder.

1:22:54•Speaker 15

And council member McKamey.

1:22:56 – 1:23:30•Speaker 5

Yes. Motion passes. All right, item number 16, consideration of possible action, recessing the regular scheduled meeting of the City Council in order to conduct business as the City of Santa Fe Employee Benefits Trust. So it is now 8.21 p.m. I call this meeting to recess. It is 8.21 a.m., and I call the p.m. It is 8.22 p.m., and I now call this meeting, regular meeting of the City of Santa Fe Employee Benefits Trust, to order. Natalie, roll call, please.

1:23:31•Speaker 15

Board Member Noto? Yes, here. Board Member Marks? Yes. Board Member Schrader?

1:23:37•Speaker 15

Board Member McKamey?

1:23:38•Speaker 18

Yes, I'm here.

1:23:40•Speaker 15

Board Member Jeanette? What? Did I say it twice? Okay. Okay. Board member Dickerson. We have a quorum.

1:23:53•Speaker 5

We're laughing because we're all saying yes instead of here. Because we're in the groove.

1:24:01 – 1:24:26•Speaker 6

All right, Mayor, Council. So tonight we have Britt Bowers. He's from Hub International. He's going to be speaking to us. He's our insurance broker. And he's here to present the selection for the employee benefits for the fiscal year 2027. And it's a short presentation for consideration before you actually adopt later on the hearing this motion.

1:24:29•Speaker 14

We have to start with item one, approval of the minutes first.

1:24:32•Speaker 5

I don't have that. I don't have an agenda for this meeting.

1:24:38 – 1:24:55•Speaker 5

Sorry. All right. Item number one, or three, business one, consideration of possible action, approval of minutes from the August 14, 2025 special meeting. Were we provided those minutes? Yes.

1:24:55•Speaker 14

Yeah, they were in the packet.

1:24:57•Speaker 7

You're second. 600 pages.

1:25:01•Speaker 5

It's only 553,000 pages.

1:25:02•Speaker 7

Yeah, another 600 pages.

1:25:05•Speaker 14

It's going to be like down in the hundreds somewhere.

1:25:08•Speaker 5

I see it. Thank you.

1:25:12•Speaker 13

I move to approve the minutes as presented.

1:25:14•Speaker 5

Second. It's been moved and seconded to approve the minutes as presented. Council, is there any further discussion? Hearing none, Natalie, roll call, please.

1:25:22•Speaker 15

Board Member Schrader?

1:25:24•Speaker 15

Board Member McKamey?

1:25:26•Speaker 15

Board Member Jeanette?

1:25:28•Speaker 15

Board Member Dickerson?

1:25:30•Speaker 15

Board Member Noto?

1:25:32•Speaker 15

Board Member Marks? Yes. You must jump the gun.

1:25:34 – 1:25:52•Speaker 5

All right, item number two, consideration of possible action review and possible acceptance of an offer for an employee medical and pharmacy insurance, an offer for employee dental insurance, an offer for life insurance, an offer for vision insurance, and an offer for long-term disability insurance. Mr. Rudy.

1:25:54 – 1:26:05•Speaker 6

Yes, as mentioned, Brett Bowers is here from Hub International. He'll be speaking and presenting to council on the selection for health benefits for the next fiscal year, which is included in the budget.

1:26:08•Speaker 8

Good evening, Brent.

1:26:09•Speaker 17

Howdy. Council, how are you doing tonight?

1:26:11 – 1:32:56•Speaker 8

Good. We do have a presentation that is prepared. It's a complete overkill. But we do have it as backdrop. If there's a question that's asked, we have a resource. What I was hoping I could do is, first of all, I just want to, you know, only city once a year. I work with Hub International. We work with about 160 different cities here in Texas. I only work with cities. I've been fortunate enough to work with the city of Santa Fe. for probably 20 years. They used to be with the Texas Municipal League. Long story short now, I work for HUB in the role of a benefits consultant and I really appreciate servicing you guys. You got a great group of people. That being said, we're always presented with a challenge and the challenge is not unique to the city of Santa Fe. I've got kind of a three year history here. We're gonna be focusing on the right side and this is just a clip notes version of where we were to where we ended up. you can see we've issued a request for proposal three consecutive years in a row and unfortunately that's just the nature of insurance anymore it was not always the case in my younger years you would partner with a carrier for four or five years and then you know make a switch and it seems anymore in order for us to maintain the level of benefits that we we deserve as public employees and then meet budget It just requires us to go out to bid. So the good news is that the RFP that we issued this year on behalf of the city of Santa Fe, it did yield the results that we were wanting. Quickly, and then I'll just move down this, the backdrop to any renewal conversation or any budget conversation or benefit conversation is, What are our claims relative to our premiums? And so when we paid Aetna this year, or UHC the prior year, they're going to look at, OK, the city of Santa Fe is putting in this much premiums, and we'll just set that as x. And then how many claims are they paying back out? And unfortunately, for the last three years, we've been a cost center to the insurance companies. We've had more claims going out, I mean, claims being paid than premiums coming in. That's one of the reasons why we've proactively done RFP because we know when you go out to bid, the new insurance companies, they're not necessarily as worried about what was paid. They're worried about what is going to be paid. They look at large claimants and diagnosis and prognosis. There's always an opportunity to make certain that we have proper leverage by doing that RFP. Does that make sense? We did get, in fact, a 36% increase from Aetna. which is not appropriate, obviously, for the city budget, or if we had to pass those increased costs to the employees. So through the RFP process, we did have quite a few of the insurance companies actually decline to quote, because again, we're still running pretty hot. That being said, Blue Cross Blue Shield did provide a very aggressive proposal And when we began looking at potential plan designs to meet budget, there was a HMO plan that was very comparable to the plan that we presently have with Aetna. And it's coming in at 3.5% over current. And so, and again, it's just the nature of, you know, the way things are purchased these days with insurance. But you guys, I know it's not fun to move carriers every year, but we literally have been able to maintain the city's budget for employee benefits for three years at a rate level. 3%, 4%. So we've really been able to accomplish quite a bit from that perspective. Of course, the other side of it is what's the employee experience or these good benefits. And so as far as the Blue Cross Blue Shield network, it's the biggest network in Texas. As far as the plan design, it's very comparable to what we have with that. There is a difference this year, though. The plan that we're picking is going to require that employees pick a quarterback or primary care physician. And it's the way that works is they'll pick a physician, their spouse can pick a physician, their kids can pick a physician. They can change the physician every single month. They're not locked into it. But the bottom line is for employees that are wanting to go get an MRI or a CAT scan or something like that, you can't just self-direct your care now. And that whole idea, and that's one of the reasons why the costs were so much lower, is because they can literally keep people from doctor shopping. And they can make certain when people are going to access care, they're accessing the appropriate care for the medical condition not googling it and just running around and getting doctors so there is that check and balance we're seeing that a lot with cities and just with the industry right now there's there's just more checks and balances to try to keep costs down because health care continues to go up so high so another thing that came out of the RFP The dental that Blue Cross Blue Shield offered comes to the city with some substantial savings there as well. So we partnered with the standard for ancillary coverages, which is the dental, the vision, the life, the disability. We really didn't plan on touching that because the standard's been a really good partner. But as I began to look and partner, knowing that we were going to go with Blue Cross Blue Shield, we looked at their dental quote, and it was actually comparable. to what we have today like an exact match actually as far as the annual maximum and the orthodontia but it was actually coming in lower than the plan that we have with the standard and if we offered it we would get a one percent bundling discount on the medical so that helped us to even further reduce it to get it down to that three and a half percent so When we were looking at the budget, obviously, it was coming in a little under budget. So the city, as we kind of walk through this, they did make a decision. And it's a great decision that employees will love. And so going forward for the vision plan, which is not a very expensive plan, but they will be covering 100% for the employee and all covered dependents. And then apart from that, literally all of the other plan designs were in our rate guarantee from last year. So there really is no substantial change in regards to the other products that are being offered that are noted here. Everything just kind of stayed the same as last year. So the main difference is going to be moving from Aetna to Blue Cross for the medical. We're going to be offering an HMO. And offering dental through Blue Cross Blue Shield, too. Yes, sir. Sorry. Thank you.

1:32:56•Speaker 7

What was the, you said, the 4% increase for vision? That covers all dependents, right?

1:33:03 – 1:33:20•Speaker 8

Yeah, yes, sir. So the standard renewal was like a 4%. Rudy, we looked at that, and I apologize. I don't have those. Do I have those numbers in here? Let's see. Right here. I think it's in this slide right here.

1:33:20•Speaker 5

Employees only is $8.28. Yeah, yeah. Employee and dependents is $23.88. Yes, sir.

1:33:29•Speaker 8

So it's $8.28 and $23.88. You're absolutely right.

1:33:34 – 1:33:45•Speaker 6

So we're holding all of those rates. So we're not increasing those rates. We're going to be absorbing those increases for this year. So it's $28 a month we're adding.

1:33:47•Speaker 5

So there's going to be no increase to the employees then on the vision?

1:33:51 – 1:34:12•Speaker 6

Correct. Next year we might need to explore additional cost adjustments. Yeah, because the employees are free. Right, right. Some cities are already starting to do that, is that correct? Yes, sir. We might start charging a minimal amount for employee only in order to start reducing those costs.

1:34:12•Speaker 5

So right now, are employees on a PPO and this is moving them to an HMO? Yes, sir.

1:34:21 – 1:34:33•Speaker 8

Had we wanted to stay on the PPO plan with the Blue Cross Blue Shield, because they did offer it, it came right in line with the Aetna renewal, so it was literally... 35% increase. It was.

1:34:33•Speaker 5

I had to move from a PPO to an HMO, too, personally, so I get it.

1:34:37•Speaker 7

But the HMO, is it the doctors, is that... compatible for people. Did you all look at the doctors and stuff?

1:34:44•Speaker 5

HMO just means that you have to go to your primary care physician.

1:34:48•Speaker 7

I'll hold that up. I don't like it.

1:34:52•Speaker 8

It's a bigger network than what Crossbow Shield is.

1:34:56•Speaker 7

There's enough doctors and everybody's going to be okay.

1:35:00•Speaker 8

As close as we are to Houston.

1:35:01•Speaker 7

We have some people that have things going on. They're going to be covered for the HMO. Yes, sir.

1:35:09 – 1:35:43•Speaker 8

Yeah, and again, I'm old enough, I remember back when it used to be Kaiser Permanente, they were withholding care. There used to be this big stigma on HMO. I'm in the business. I mean, there literally is nobody withholding care, but there is an extra step before you access care. And so, yes, is it a hassle? It can be. But at the end of the day, you're going to get the exact same care that you would otherwise if the care that you were receiving was medically appropriate. which everybody has to get pre-authorization for anything expensive now anyway. But it is an extra step, 100%.

1:35:45•Speaker 19

You're just saying you go to your doctor.

1:35:50 – 1:37:12•Speaker 8

and then say you have to have a knee surgery and your doctor okays that to go to certain surgeons yes sir and so we'll do we'll have to do a lot of education and we've talked about this and so when we do open enrollment next week we we continually push and we're getting some traction but the biggest thing we'd love for all the employees to do is go see their doctor Go get your annual physical exam. I mean, anymore, they can catch cancer at stage one and it's done. But if you wait until you have symptoms or you have problems with your health, then you have a large claim. And that's what's driving up our cost. And so tying back into the HMO conversation, the best thing you can do is just go get your annual physical. And then at that point, you have a relationship with that doctor. If you need to go see an allergist, you just call them. They have a docket for you. It's all about that person being familiar with you and helping you navigate a weird healthcare system. It's not about them trying to keep you from going. It's just trying to keep you from going to the wrong spot. And we want to get people to start going to the doctor more. So that's a big part of it. Once you get a referral, it's good for a year. It's not like you have to go there and go back. So it's an extra step, 100%. But it's not so punitive that everybody's going to be complaining other than the fact that, doggone it, I got this extra step now.

1:37:14•Speaker 19

Rudy, where do we absorb the 3.5%? Where at in our budget do we absorb this 3.5%?

1:37:22•Speaker 6

In the payroll.

1:37:27 – 1:37:39•Speaker 5

So, by the way, I see my primary care physician online virtually to get a referral, so it's not that big of a deal if that's... Yeah, it would be available.

1:37:39•Speaker 8

It's similar with...

1:37:40•Speaker 5

So, Rudy, I have two questions. Number one, in this budget that we're getting ready to adopt, what assumption did you make on insurance increase?

1:37:49 – 1:38:21•Speaker 6

We changed the original assumption from the 20% that we had which is the reason why we had to make some adjustments because it was over the threshold that we originally looked at. And we moved that down after we spoke and he received the bids to 10%. So this will be an additional reduction in our budget if it actually comes in as we expect. So we can actually, the number that it's gonna be here in the end is actually going to be a positive for us.

1:38:22 – 1:38:38•Speaker 5

Yeah, because this was, what, 3.4%? So we've got 6.6% coming back to us already. Yes, and that's a large bill. That's a really large bill. What is the balance of the $800 insurance fund?

1:38:46•Speaker 8

Oh, I'm sorry. That might be throwing Rudy for a loop. Some of these are, like, not internal. Oh, okay. But, I mean, I know Rudy can talk about that.

1:38:53•Speaker 5

So you said for plan year two, I received $800,000 in a separate account and paid all expenses from that account.

1:39:00 – 1:39:53•Speaker 8

Yeah, and that might be oversimplification. Last year, we actually came in at minus 5.8%. There was literally a deal that Aetna provided to us where we got our first month, we got a $40,000 credit and it was already below, so there was gonna be some funds left over at the end of the day. And so when we were working with city leadership, the idea was to kind of set that money aside and kind of earmark it for a time when we might need it if we did get a large increase. That's more my notes, too. As I'm visiting with Rudy every year, we're going through budgeting. It's kind of like, where are we at? You guys aren't so funded, so you don't necessarily have a rate stability fund. But a lot of cities, it's a best practice if you have a good win. you know, kind of stick some of it. Yeah, that's what we just talked about.

1:39:53 – 1:41:02•Speaker 6

So we do have a bank account. It's called the Employee Benefits Trust Fund, where we could house that. The only problem with that, and it was a really great idea when we first came up with it, that that's where we stick that money. At the end of the year, once everything gets balanced, all the expenses are in, it's currently sitting on a liability on the balance sheet. So that amount of money is going to be, you know, There's going to be a net there that we could transfer directly that cash directly to the Employee Benefits Trust Fund. The problem with that is the Employee Benefits Trust Fund doesn't gain any interest. So we'll have to set up something with the bank in order to make that change because currently it isn't. So we're believing in our bank under that separate line item for the liability for the insurance, for just the health insurance, so that we can continue to get some money off of any residual, any positive that's left in there. But that's something we'll have to work out next year with the bank. We'll just make a change to that. I'm not sure. If that's possible. It's your money. I don't know if we can make a change. If there's any regulations regarding employee benefits trust fund, the gaining interest.

1:41:02•Speaker 5

I appreciate all that information. Sorry. Rudy, you still didn't answer my question. What is the balance? How much of that $800,000 is there?

1:41:12 – 1:41:43•Speaker 6

I don't know. There's no way. Is it in this? Is it somewhere in here? It's in the balance sheet. It's on our website. And even the balance sheet, we would need to reconcile all of the bills coming in and placing and putting them in the system as payables. And any residual hits that liability. So until the end of the year, we won't know an exact amount. I mean, we can guess.

1:41:43 – 1:43:29•Speaker 5

So here's... Here's a little bit of a frustration that I have. It's not going to be solved tonight. Sure. But I'm going to put it out there tonight. Let's say that you're getting ready for this year's budget. And so you budget a 10% increase for assuming that we may have a 10% increase in our insurance. So you're forecasting that. To have a good conservative budget, things, expenses go up, right? Okay. Okay. Then you have this pot of money that you have set over here to the side to buy down a potential increase. So I don't want to use the word padding, but I'm going to. You pad the budget saying, well, we need to prepare that we might have a 10% increase. But you've got a pot of money over here that would offset that 10% increase. And so now you're saving, you're padding two different places to cover the same expense. We look at the budget, and then conversations start happening of, oh, I don't know. We might need to look at an increase, at a rate increase this year. The budget's tight. How many situations do we have where we have this little 2% extra buffer, this 3% inflation guard, on top of what our general fund reserves are on top of the entire 3% or 2% budget inflation buffer room that you have? That's a statement. Not asking for you to reply to it, but I just... I want us to be conservative on our budget. I want us to certainly have room for inflation and increased costs, but I don't want to be double counting it.

1:43:31 – 1:43:42•Speaker 6

I know that our bill is going to increase a little bit. We haven't adjusted for the deductions from the employees. Some of that's going to be used.

1:43:43 – 1:44:43•Speaker 5

So here's a perfect example of how this could be practically. You said that you accounted, and I know we're talking about pennies because vision insurance is relatively inexpensive, but you told Council Member Dickerson earlier that you accounted for that 4% increase in vision insurance through payroll. It's in the payroll expense, yes. But we also have this insurance, I don't want to call it a slush fund, this insurance savings fund that could be used to offset that. For next year, yes. Well, it could have been for this year. Still could be, yes. So do you see what I'm saying? So... Did we need to increase salaries if we have this money over here to offset it? Like, let's either take that money and put it in the general fund and then plan for it in our inflationary predictors or take it out of our inflationary predictors and keep the fund. But we shouldn't do both.

1:44:44 – 1:45:56•Speaker 6

So last year we talked about this. With this $24,000, which is what the residual amount should be, If all things being equal, if we're charging people exactly what the plan says and then people are coming and then people are being charged and it's being paid correctly and everything is fine, then we still have that $24,000 that was given to us by Aetna at the very beginning. In theory, that's what it should be, but if we increase in this budget by the 4%, or the 3.6? 3.6%, then that 24 would be reduced, but I just don't know exactly how much. We haven't done those calculations on it, but when we spoke last year, that amount of money was gonna be moved into that benefits trust fund. That's what we talked about. And so we could buy down future insurances and that's what we discussed, which we still can for sure. And that's what we're kind of doing this year. We are not raising insurance rates on our employees because we know we have that money left over. that $24,000.

1:45:56 – 1:46:24•Speaker 5

Yeah, I guess just to sum it up, what I'm saying is I don't think that we need to put in an inflationary number for, let's say, for instance, for insurance if we know that we're going to buy down that increase with money that we have here. then it shouldn't be, we shouldn't budget a 4% increase in insurance premiums if we know we have this money here that's going to offset that increase. I agree. I agree. I don't want to belabor the issue.

1:46:24 – 1:46:35•Speaker 6

No, I just, we didn't know the final numbers until two days ago. So we were still looking at the 10%. I just want you to understand this.

1:46:35•Speaker 7

It said the city has elected to absorb a 3.5% increase. That's correct. Which is, is that the $28 increase? That we're talking about?

1:46:44•Speaker 5

No, that's medical.

1:46:45•Speaker 7

Right. The city's going to absorb it. The city's going to absorb it. So how much is that per person?

1:46:52•Speaker 5

We don't know.

1:46:53•Speaker 8

He doesn't have that. I don't have that.

1:46:56•Speaker 8

I don't have it on this slide. I mean, we know their enrollment, and we know what the city funds, so it would be easy enough to back into it.

1:47:03 – 1:47:24•Speaker 5

That's what it looks like right here. Well, they got to update it because we saved 1%, but it was $623 for the employee. That's all we pay is for the employee. We don't pay employee and spouse, right? That's correct. Correct. So now it's $623 per employee that we pay.

1:47:29•Speaker 7

We pay for it. Every two weeks.

1:47:30•Speaker 8

So it was, like if you look at slide five, it was 623, and we got the 1% bundling, so now it's 616. 616.

1:47:36•Speaker 5

Yes, sir. No, that is this 3.5 increase.

1:47:41 – 1:48:29•Speaker 8

And I really must say, and I apologize, it's not bad math. It's fat fingers. This is not 800,000. It's 80,000. Because we had 24 then the minus five that adds up to eight zero nine eight hundred so that oh That is not that I just literally hit zero extra guys because that map checks out a hundred percent when you Consider the building credit that we got and then the fact that was minus five point whatever percent. That's where it did totality without we did keep the employees contributions the same so that ate some of that out so this was really just me my little note so i knew to ask rudy every year hey how are we looking in the same way that you are is there any money there so we can have a discussion about the best way to use what we might have set aside the previous year.

1:48:30•Speaker 18

Well, thank you for clearing up that $800,000 because Councilman Schroeder was buying a new paving machine. I was on the line down there.

1:48:38 – 1:48:51•Speaker 8

We're going to buy it in a jibber. See, our total annual premium is just, you know, a little over half a million. So it was, yeah.

1:48:51•Speaker 6

Yeah, I was, I think it was $80,000.

1:48:53•Speaker 8

Yeah, it was definitely a typo.

1:49:00•Speaker 7

Which is how much? 3.5%.

1:49:04•Speaker 8

3.5%. With the starting point we have now, it's basically $17,624 more.

1:49:12•Speaker 7

Which equals how much to employee? $17,000 what? How much does that equal to employee?

1:49:18•Speaker 8

Let's take $17,000 divided by 58. I can do that in my head.

1:49:22•Speaker 5

The employees don't pay. No, we pay 100% insurance for employees. They only have to pay if they had their spouse or children.

1:49:30•Speaker 8

And we haven't gone up on those rates either. None of those rates have been frozen for two years.

1:49:35•Speaker 7

I'm just looking at it.

1:49:36•Speaker 5

We're buying down those, too. We're buying down the dependents and the spouses and the children, too.

1:49:41•Speaker 6

Hence, what you had asked us to do last year is take that $24,000 and use it to buy down insurance for the employees.

1:49:50•Speaker 7

So we're giving employees money.

1:49:53•Speaker 7

We're writing it down, so we are.

1:49:54•Speaker 5

We're charging them less. Yeah. We're charging them less than what it's costing us.

1:49:59•Speaker 7

The same amount they were last year. Right. We're just employees.

1:50:04 – 1:50:22•Speaker 5

No, for the spouses and the kids. We're buying down their rate. So they're paying the same rate for their spouse or their kids. They're paying the same rate they have for the last three years. We're making up the difference. You want to come to work for us? I think we're looking for a laborer. Aren't we looking for a laborer? It's kind of like a pay raise.

1:50:22•Speaker 7

I'm so sorry, but I love the

1:50:33•Speaker 8

Just real quick, these are the exact same premiums that have been charged to the employees for three years in a row. So when we had a 6%, 5.8% decrease.

1:50:43•Speaker 7

If we can afford it, I'm great. I'm good with that.

1:50:44•Speaker 8

We didn't pass that decrease to the employees. That's why we had the $50,000.

1:50:50•Speaker 5

It's been active. Y'all are both talking. What he's saying is, how many years ago was it?

1:50:56 – 1:51:23•Speaker 8

It was just last year when we had the 5.8% decrease. We held the rates flat. which means we didn't pass the decrease to the employees, which helped make up that what I perceive to be the 8,000. But that decrease was also that 24,000. Yes, yeah. But I mean, it's actively being managed to mitigate the spikes. And again, I don't know the accounting on the back end, but I mean, as far as the practice.

1:51:25•Speaker 8

Like socialized medicine? Maybe I just quit talking.

1:51:31 – 1:51:42•Speaker 6

If it goes down, we lower. If it goes up, we raise. We just kept it flat for the employees.

1:51:43 – 1:52:02•Speaker 5

Make sure, Rudy, that next year when we start talking about budget, we have a budget workshop. We have a budget workshop about our Employee benefits and how we are subsidizing or not subsidizing and floating or not floating, premium increases and decreases.

1:52:02•Speaker 7

How much we're giving, how much we're taking away.

1:52:10•Speaker 7

I mean, it's great. I mean, we can afford it.

1:52:19•Speaker 7

Can I not touch that? Sorry? Can I not touch that?

1:52:22•Speaker 6

I wish we could buy down the family insurance more, but.

1:52:28•Speaker 5

All right, council. I think I've spoken enough. It's up to y'all.

1:52:40•Speaker 6

So is this the end of the public hearing?

1:52:46•Speaker 5

It's not a public hearing. It's just a review and possible acceptance, so council just needs to decide whether they're gonna.

1:52:56•Speaker 18

I'll make a motion to accept the insurance as presented. Second.

1:53:01 – 1:53:20•Speaker 5

It's been moved and seconded to accept an offer for employee medical and pharmacy insurance, an offer for employee dental insurance, an offer for life insurance, an offer for vision insurance, and an offer for long-term disability insurance as presented. Council, is there any further discussion? Natalie, roll call, please.

1:53:25 – 1:53:36•Speaker 15

Board member Schroeder? Yes. Board member McKamey? Yes. Board member Jeanette? Yes. Board member Dickerson? Yes. Board member Noto? Yes. And board member Marks?

1:53:36 – 1:54:47•Speaker 5

Yes. Motion passes. Thank you, board members. I'll now entertain an adjournment. Motion to adjourn. Second. Second. And seconded. Thank you, gentlemen. All right. Yeah, not so fast. All right. It is 8.52 p.m. I now call this regular meeting of the City of Santa Fe City Council to order. All right, item number 18, consideration and possible action, adoption of resolution of the City Council of the City of Santa Fe, Texas, accepting the action of the City of Santa Fe Employee Benefits Trust to accept the offer for employee medical and pharmacy insurance from Blue Cross Blue Shield, the offer for employee dental insurance from Blue Cross Blue Shield, the renewal offer for life insurance from Standard Insurance Company, the renewal offer for vision insurance from Standard Insurance Company, and the renewal offer for long-term disability insurance from Standard Insurance Company, reauthorizing funding for such benefits, providing for the incorporation of preamble, authorizing execution of the offer and of the renewals by the mayor, and providing an effective date. Council, I'll entertain a motion.

1:54:49•Speaker 13

I move to approve the insurance as presented.

1:54:53•Speaker 5

Second. It has been moved and seconded to approve the offer for employee benefits as presented. Natalie, roll call, please.

1:55:04•Speaker 15

Council Member Jeanette?

1:55:05•Speaker 15

Council Member Dickerson?

1:55:07•Speaker 15

Council Member Marks?

1:55:08•Speaker 15

Council Member Schrader?

1:55:09•Speaker 15

And Council Member McKamey?

1:55:11•Speaker 5

Yes. Motion passes. Thank you, Council. Item number 19, public hearing. Proposed 2026-2027 budget for the City of Santa Fe. Mr. Zepeda? Yes.

1:55:21 – 1:55:51•Speaker 6

Mayor, council, thank you so much. This has been a very long journey. We've made a lot of changes to our budget document this year, and we're very happy that we got a lot more detail into some areas that we've had before. So let's start from the beginning, page one. So this 2026-2027 budget totals approximately about $14.3 million, and part of that is $12.4 million for general fund operations and approximately...

2:23:19•Speaker 11

Moved and seconded.

This transcript was automatically generated from the official public meeting video and is presented unedited. It reflects remarks made on the public record by elected officials, staff, and public commenters. Transcript accuracy may vary; view the original recording for reference.