[1. CALL TO ORDER] [00:00:29] ICE. SO THE VERSE OF THE DAY TODAY IS A GOOD ONE. AS THEY ALL ARE. PROVERBS 910 FEAR OF THE LORD IS THE FOUNDATION OF WISDOM. KNOWLEDGE OF THE HOLY ONE RESULTS IN GOOD JUDGMENT. LET'S PRAY. LORD, THAT'S WHAT WE'RE LOOKING FOR TONIGHT. WE'RE LOOKING FOR WISDOM, LOOKING FOR KNOWLEDGE, FOR GOOD JUDGMENT. AND PRAY THAT YOU WOULD BLESS EVERYONE HERE WITH THAT, THOSE WHO ARE SPEAKING, THOSE WHO ARE LISTENING. THANK YOU SO MUCH FOR THE TIME THAT THIS COUNCIL PUTS INTO CARING FOR THE THE WONDERFUL TOWN OF NORTHLAKE. GIVE THEM WISDOM AND AND ALL THE DECISIONS THAT ARE BEING MADE. BE WITH ALL THOSE WHO ARE PRESENTING TONIGHT. GIVE THEM A CALM SPIRIT AND A STRONG VOICE AS THEY. THEY SHARE WHAT'S ON THEIR HEARTS AND ON THEIR MINDS THIS EVENING. BE. WITH ALL THE DELIBERATIONS THAT ARE HAPPENING TONIGHT, LORD. AND AS WE CELEBRATED MEMORIAL DAY THIS WEEK, WE ESPECIALLY REMEMBER THOSE WHO'VE GIVEN THEIR LIVES IN ORDER TO KEEP US FREE AND SAFE IN THIS WONDERFUL COUNTRY. WE PRAY THAT YOU WOULD CONTINUE TO BE WITH THOSE WHO ARE SERVING IN THE MILITARY, EVEN TODAY, AND BE WITH OUR FIRST RESPONDERS WHO ARE WORKING DILIGENTLY TO TO KEEP US SAFE AND HEALTHY. AND IN THIS AREA. LORD, WE LIFT UP THIS MEETING TO YOU AND PLACE IT INTO YOUR CARE. IN JESUS NAME, AMEN. AMEN. THANK YOU. PASTOR, WOULD YOU PLEASE STAND FOR A PLEDGE? ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. I PLEDGE ALLEGIANCE TO THEE. TEXAS, ONE STATE UNDER GOD, ONE AND INDIVISIBLE. ALL RIGHT. COUNCIL, [2.A. Reports and Updates from the Mayor and Town Councilmembers Concerning Items of Community Interest (if necessary)] DOES ANYBODY HAVE ANYTHING YOU'D LIKE TO SHARE WITH PUBLIC TONIGHT FROM THE PAST WEEK OR WEEKS? ANYTHING COOL? ALL RIGHT. THE ONLY THING I HAVE SHARE IS SOME OF YOU MAY KNOW THAT THE COUNTY JUDGE, ANDY EADS, HE HOSTS A MAYOR COUNCIL THAT WE MEET TYPICALLY ABOUT ONCE A MONTH AND ATTENDED THAT THERE'S A COUPLE OF NEW MAYORS THAT HAVE BEEN ELECTED IN IN THE REGION. SO IT WAS NICE TO MEET SOME OF THOSE FOLKS. WE HAD A REALLY GOOD DISCUSSION ON ENERGY AND POWER AND WHAT THE GRID'S BEEN DOING TO KEEP UP WITH STUFF. AFTER WINTER STORM SEVERAL YEARS AGO, AND THE GROWTH NEEDS AROUND HERE AND THINGS THAT ARE COMING, COMING TO PASS AND HOW ERCOT HAS BEEN DEALING WITH THOSE AND OTHER ENTITIES BEEN DEALING WITH THOSE. SO IT'S JUST A KIND OF REGIONAL UPDATE. THEY HAVE MADE A LOT OF IMPROVEMENTS, BUT OBVIOUSLY WE GOT TO GET THROUGH ANOTHER SUMMER AND THEN ANOTHER WINTER AND SEE WHERE THINGS KEEP GOING. BUT IT'S GOOD TO SPEND TIME WITH THOSE FELLOW MAYORS TO SEE WHAT THEY'RE FACING, THE CHALLENGES THEY'RE FACING, THE SUCCESS THAT THEY'VE HAD. AND THAT'S WHERE WE SHARE A LOT OF INFORMATION BACK AND FORTH. SO JUST A LITTLE UPDATE THAT WE HAD THAT THIS WEEK. AND IF THERE'S NOTHING ELSE, WE'LL MOVE ON WITH THE AGENDA. MAYOR, I JUST WANT TO DRAW YOUR ATTENTION AS WE PLAN OUT THE CALENDAR. IT LOOKS LIKE WE'RE NOT GOING TO NEED THE JUNE 25TH MEETING. SO FOR COUNSELORS TO PLAN THEIR SCHEDULE, WE'LL HAVE A JUNE 11TH MEETING. STAFF WILL CONTINUE WORKING ON THE BUDGET, BUT WE HOPE TO HAVE THE PROPOSED BUDGET TO YOU. JULY 23RD AND A MEETING THEN. AND THEN WE'LL HAVE TWO MEETINGS IN AUGUST A WEEK APART. SO JUST WE'LL WE'LL HAVE AN ITEM ON THE JUNE 11TH CANCELING THE JUNE 25TH MEETING TO MAKE IT OFFICIAL. AND ALSO ANNABELLE ACKLIN IS HERE. PHYSICALLY, DEAN IS WATCHING ONLINE. HE'S ON A WORK SESSION IN UTAH, AND SO HE'LL BE AVAILABLE FOR ANNABELLE AND I OR ANY OF YOU ALL IF WE IF WE NEED HIM. BUT ANNABELLE REPRESENTS OTHER CITIES AS WELL. SO SHE'S SHE'S CAPABLE OF, OF HELPING US THROUGH THIS MEETING. THANK YOU. [2.B. Employee Anniversary - Eric Tamayo, Public Works - 15 Years] THANK YOU. DREW. ALL RIGHT. DREW, WOULD YOU LIKE TO COME UP FOR OUR FIRST ITEM TODAY? YES, [00:05:06] SIR. BUT I'D LIKE TO CALL A LIFELINE. I, I THINK A LOT OF ERIC, BUT WE HAVE SOMEBODY ON STAFF THAT THINKS QUITE A BIT OF THEM TOO, AND HAS WORKED FOR THEM FOR A NUMBER OF YEARS. SO I'M GOING TO TAG TEAM. I'M GOING TO ASK BRANDON, HIS ASSISTANT DIRECTOR, TO COME IN AND GIVE THE COMMENTS. SO IF I DIDN'T WRITE IT DOWN, I'D JUST STAND UP HERE AND BUMBLE. SO GOOD EVENING EVERYONE. THANK YOU, MAYOR COUNCIL DREW, FOR ALLOWING ME TO RECOGNIZE SOMEONE WHO HAS MADE A TREMENDOUS IMPACT, NOT ONLY ON THE PEOPLE THAT HE WORKS WITH, BUT ON THE ENTIRE COMMUNITY HE SERVES. 15 YEARS IS AN INCREDIBLE MILESTONE, BUT WHAT REALLY STANDS OUT IS THE KIND OF LEADER HE HAS BEEN THROUGHOUT THOSE YEARS. BACK IN 2009, BEFORE WE BOTH EVER WORKED AT NORTH LAKE, THAT LITTLE GUY GAVE THIS BIG GUY A BIG CHANCE FOR HIS FIRST JOB IN TEXAS AS A 22 YEAR OLD. THE. THAT CHANCE CHANGED THE COURSE OF MY LIFE MORE THAN HE PROBABLY REALIZED. SOMETIMES LEADERS. LEADERSHIP STARTS WITH SIMPLY BELIEVING IN SOMEONE BEFORE THEY FULLY BELIEVE IN THEMSELVES. BUT HE DIDN'T STOP THERE. HE PUSHED ME PERSONALLY TO CONTINUE MY EDUCATION AND EARN MY BACHELOR'S DEGREE AND GET HIGHER LICENSING. HE IS ALSO. HE ALSO BELIEVED THAT PEOPLE ARE. HE ALSO BELIEVED THAT PEOPLE ARE CAPABLE OF MORE. AND. HE ENCOURAGES THEM TO RISE TO THAT POTENTIAL. THAT'S THE THING THAT SETS HIM APART. HE PUTS PEOPLE FIRST. HE. HE WANTS HIS GUYS TO SUCCEED. HE INVESTS IN THEM, MENTORS THEM, AND CREATES OPPORTUNITIES FOR THEM TO GROW PROFESSIONALLY AND PERSONALLY. THE RESPECT HIS TEAM HAS FOR HIM SAYS EVERYTHING ABOUT THE KIND OF LEADER HE IS, AND THE RESULTS SPEAK FOR THEMSELVES. WHAT STARTED AS A PUBLIC WORKS DEPARTMENT WITH ONLY TWO EMPLOYEES HAS GROWN INTO A TEAM OF 33. THAT KIND OF GROWTH DOESN'T HAPPEN BY ACCIDENT. IT TAKES VISION, DEDICATION, HARD WORK, AND COMMITMENT TO BUILD SOMETHING BIGGER THAN YOURSELF. TONIGHT WE CELEBRATE NOT JUST 15 YEARS OF SERVICE, BUT 15 YEARS OF LEADERSHIP, MENTORSHIP, AND IMPACT. THANK YOU FOR EVERYTHING YOU'VE DONE FOR YOUR TEAM, FOR THIS DEPARTMENT AND THE MANY PEOPLE WHOSE LIVES AND CAREERS YOU'VE HELPED SHAPE ALONG THE WAY, INCLUDING MINE. CONGRATS ON THIS WELL-DESERVED RECOGNITION. ALL RIGHT, MAYOR, YOU WANT TO COME DOWN? WE. THIS ONE'S WEIRD BECAUSE HE HAD TO ORDER HIS OWN STREET SIGN, BUT HE. BRANDON, STAY UP HERE. YEAH, IF ERIC'S OKAY WITH YOU. NO. THAT'S FINE. ALRIGHT, SO YOU PRESENT THIS. PUT ERIC IN THE MIDDLE. CONGRATULATIONS. GOOD JOB, I APPRECIATE IT. YOU BET. IT IS AMAZING HOW MANY STAFF THAT WE HAVE THAT HAVE BEEN HERE FOR SUCH A LONG TIME. AND THAT TYPE OF LEADERSHIP AND THE RESPECT FROM YOUR STAFF IS AMAZING. THANK YOU FOR YOUR SERVICE. ALL RIGHT. DREW, ARE [2.C. Briefing - Employee Recognition Awards] YOU DOING THE NEXT ONE? ARE YOU GOING TO MAJOR YOUNGBLOOD? WILL I'M GOING TO TAP OUT AGAIN. YEAH. THAT'S A GREAT HAVE A GREAT DEPARTMENT HEADS. THEY THEY GET IT DONE. SORRY MAJOR. THAT WAS A BRANDON HEIGHT SO YEAH YEAH YEAH. LITTLE GUY AGAIN. YEAH. SO JUST FOLLOWING UP, I THINK IT'S A EXCELLENT TOPIC TO KIND OF TRANSITION INTO AS WE TALKED ABOUT EMPLOYEE RECOGNITION. SO I'LL BE PRESENTING OUR EMPLOYEE RECOGNITION AWARDS, AT LEAST THE RECAP OF OUR AWARDS CEREMONY THAT TOOK PLACE. JUST BEFORE WE GO INTO THAT, I DID WANT TO TAKE JUST A MOMENT TO KIND OF HIGHLIGHT THE IMPORTANCE OF RECOGNITION. GALLUP, A NATIONALLY RECOGNIZED WORKPLACE RESEARCH ORGANIZATION, SHOWS THAT EMPLOYEE RECOGNITION IS A KEY DRIVER OF ENGAGEMENT, PERFORMANCE AND RETENTION. EMPLOYEES WHO RECEIVE MEANINGFUL RECOGNITION ARE UP TO FOUR TIMES MORE LIKELY TO BE ENGAGED OR COMMITTED. AND ALSO, WE JUST SAW WITH ERIC HERE, EMPLOYEES ACTUALLY SAY WHEN THEY GET RECOGNIZED. SO WE SEE THAT UP TO 45% LESS LIKELY TO LEAVE FOR THOSE EMPLOYEES THAT RECEIVE THAT MEANINGFUL WORK CONDITION. SO THAT'S PRETTY IMPORTANT FOR US. SO A LITTLE BIT OF BACKGROUND ON HOW WE RECOGNIZED OUR EMPLOYEES. MOST RECENTLY, THE TOWN HOSTED ITS FIRST EVER EMPLOYEE APPRECIATION AWARD CEREMONY BACK IN APRIL. THROUGHOUT THE YEAR, THE EMPLOYEES WERE ENCOURAGED HERSELF, WAS ENCOURAGED TO REFLECT OR DEMONSTRATE OUR TOWN VALUES IN THEIR WORK. SO THAT'S AROUND STEWARDSHIP, LEADER SEARCH, TEAMWORK, ACCOUNTABILITY, AND RESPECT. THE CEREMONY WAS DESIGNED TO RECOGNIZE THOSE EMPLOYEE CONTRIBUTIONS AS WELL AS REINFORCE OUR TOWN CORE VALUES. SO THE EMPLOYEE APPRECIATION CEREMONY [00:10:05] EXPERIENCE REALLY IS KIND OF A FEW DIFFERENT THINGS GOING ON. WE HAD BREAKFAST OR REFRESHMENTS. FORMAL RECOGNITION WAS REALLY JUST KIND OF US GIVING OUT THE AWARDS AND RECOGNIZING THOSE INDIVIDUALS IN FRONT OF THEIR PEERS. AND THEN THAT TEAM ENGAGEMENT THAT REALLY JUST HELPED WITH THE CROSS-DEPARTMENTAL NETWORKING. WE SAW A HUGE MORALE BOOST AS A, AS A RESULT OF THIS, AS WELL AS RE-ENERGIZING OUR WORKING RELATIONSHIP. SO WE SAW PEOPLE KIND OF REACHING ACROSS DEPARTMENTS, YOU KNOW, TALKING WITH PEOPLE AND PLAYING GAMES AND JUST HAVING A GOOD TIME WITH PEOPLE THAT YOU WOULDN'T REALLY SEE COMMUNICATE OUTSIDE OF THEIR NORMAL DAY TO DAY JOB. SO THAT REALLY HELPS KIND OF BRING BACK HOME AND HELPS BUILD THOSE WORKING RELATIONSHIPS GOING FORWARD. SO AS FAR AS THE RECOGNITION AWARDS GO, EMPLOYEES WERE NOMINATED THROUGHOUT THE YEAR BY THEIR PEERS, SUPERVISORS, OR ANY OF THEIR SUBORDINATES. WE HAD A COMMITTEE IN PLACE TO ACTUALLY SELECT THOSE AWARD RECIPIENTS. TWO RECIPIENTS WERE SELECTED FOR EACH OF OUR CORE VALUES. OKAY, SO NOW GETTING INTO THE AWARDS, THE STEWARDSHIP AWARD WENT OUT TO INDIVIDUALS THAT DEMONSTRATED STEWARDSHIP IN THEIR ROLES. BY TAKING GREAT PRIDE IN THE WORK THEY HAVE BEEN ENTRUSTED WITH. AND SO OUR FIRST AWARD RECIPIENT WAS CAL BROWN, UTILITY WATER QUALITY COORDINATOR WITH OUR PUBLIC WORKS DEPARTMENT. OUR SECOND RECIPIENT WAS GLENDA GALLAGHER, UTILITY BILLING CLERK WITH OUR FINANCE DEPARTMENT FOR TEAMWORK AWARD. THIS WENT OUT TO INDIVIDUALS WHO CONSISTENTLY DEMONSTRATED WHAT IT MEANS TO BE A GREAT TEAM PLAYER. AND THE FIRST AWARD RECIPIENT WAS DOUGLAS PRIOR, POLICE OFFICER WITH OUR POLICE DEPARTMENT, AND TINA OGLETREE, OUR RECORDS CLERK IN OUR TOWN SECRETARY'S OFFICE. FOR THE ACCOUNTABILITY AWARD. THIS WENT OUT TO INDIVIDUALS THAT WERE DEMONSTRATING WHAT IT MEANS TO BE ACCOUNTABLE FOR THE WORK THEY DO AND CONTRIBUTE TO. THE FIRST AWARD RECIPIENT WAS COREY ROLLINS, A PATROL OFFICER WITH OUR POLICE DEPARTMENT. AND THEN THE SECOND RECIPIENT WAS DANIELA SANCHEZ, OUR MANAGEMENT ASSISTANT WITH ADMINISTRATIVE SERVICES FOR RESPECT. THIS AWARD WENT OUT TO INDIVIDUALS WHO DEMONSTRATE A GREAT DEAL OF RESPECT FOR THE TOWN AND HOW THEY MANAGE DAY TO DAY CHALLENGES. THE FIRST AWARD RECIPIENT WAS EMILY TEAGUE, OUR COURT CLERK IN FINANCE. AND THEN MATTHEW, OUR PLANNING TECHNICIAN AND OUR DEVELOPMENT SERVICES, WAS OUR SECOND AWARD RECIPIENT. LAST BUT LEAST, WAS OUR TOWN MANAGER'S LEADERSHIP AWARD. THIS AWARD WENT OUT TO THE EXECUTIVE TEAM MEMBER, WHO STOOD OUT THE MOST IN THE PAST YEAR FOR THEIR LEADERSHIP AND COMMITMENT TO THE TOWN, AND THIS YEAR'S RECIPIENT WAS DONNA PARKER, OUR TOWN SECRETARY. SO THIS CONCLUDES OUR AWARD RECIPIENTS FOR THIS YEAR'S APPRECIATION OR RECOGNITION PROGRAM. WE LOOK FORWARD TO RECOGNIZING OUR EMPLOYEES IN DIFFERENT WAYS THROUGHOUT THE YEAR. AND OF COURSE, SINCE THIS IS A REALLY GOOD, SUCCESSFUL EVENT, WE LOOK FORWARD TO HAVING ANOTHER AWARD PROGRAM NEXT YEAR. AND COUNCIL, THANK YOU FOR LETTING US CLOSE OUR OFFICES FOR HALF A DAY SO WE COULD WE COULD DO THIS. SO WE APPRECIATE THAT. THANK YOU. VERY NICE. THANK YOU. THE WAY THAT YOU CONTINUE TO INVEST IN YOUR STAFF AND YOUR LEADERSHIP THAT YOU EXUDE TO THE TEAM EVERY DAY, BE NICE FOR YOU TO BE ABLE TO GET A WORD FROM YOUR STAFF. BUT THIS IS FOR, FOR THE REST OF THEM. SO THANK YOU SO MUCH FOR YOUR EFFORTS AND MAINTAINING THAT QUALITY OF EXCELLENCE. THANK YOU SIR. MR. [2.D. Briefing - Fiscal Year 2026 Second Quarter Investment & Financial Report (Jan - Mar 2026)] JOHN, HOW YOU DOING? I'M HERE. I'M ALIVE. I'M SURVIVING BUDGET SEASON SO FAR. SO BUT WE'LL TALK ABOUT THAT IN A SECOND. SO WE'LL START OFF WITH LOOKING AT OUR FINANCIAL NUMBERS FOR OUR INVESTMENT AND ALSO OUR SECOND QUARTER GOING THROUGH WITH OUR USUAL FINANCIAL REPORTS. SO JUST LOOKING AT THE SECOND QUARTER, OUR TOTAL BOOK VALUE RIGHT NOW OUR INVESTMENT VALUE IS ABOUT 88 MILLION. THAT IS A DROP FROM WHAT IT HAS BEEN OVER THE LAST COUPLE QUARTERS. IF YOU LOOK DOWN A COUPLE BULLET POINTS, YOU'LL SEE THAT IT'S DECREASED 11 MILLION. SO 11% IN TOTAL BOOK VALUE. THAT'S BECAUSE WE'VE BEEN SPENDING ON CAPITAL PROJECTS, SPECIFICALLY THE STAR CENTER AND THE INFRASTRUCTURE. WE'RE GETTING RID OF ALL THOSE FUNDS. AS THE PROJECT HAS NOW REACHED SUBSTANTIAL COMPLETION AS FAR AS INTEREST EARNINGS HAS GONE IN AND OF ITSELF, ABOUT 2 MILLION WE'VE EARNED SO FAR THROUGH THE SECOND QUARTER FOR THIS YEAR AND THE SECOND QUARTER, IT SAYS THIRD QUARTER THERE THERE SHOULD SAY SECOND. BUT THE SECOND QUARTER INTEREST EARNINGS WERE 913,000. AND EARNINGS DID DECREASE BY 15% COMPARED TO THE PRIOR QUARTER. BUT ONCE AGAIN, THAT'S BECAUSE WE'VE SEEN A DECREASE IN OUR BOOK VALUE AS WE'VE SPENT ON CAPITAL PROJECTS. AND AS ALWAYS, OUR REPORT IS ONLINE FOR THE PUBLIC OR COUNCIL TO REVIEW THE FULL REPORT IN DETAIL THAT'S PROVIDED BY OUR INVESTMENT ADVISORS. MOVING ON TO THE QUARTERLY FINANCIAL REPORT. SO THAT IS ALSO ONLINE. WE PROVIDE [00:15:07] A PUBLIC COPY FOR THE PUBLIC TO TAKE A LOOK AT AND INTERACT WITH. AS OF RIGHT NOW, 50% OF THE FISCAL YEAR HAS TRANSPIRED. WE'VE COLLECTED 55% OF OPERATIONAL REVENUES, 95% OF BUDGETED PROPERTY TAXES AND ASSOCIATED ASSESSMENTS HAVE BEEN RECEIVED. FOR THE YEAR, 46% OF BUDGETED SALES TAXES HAVE BEEN RECEIVED. AND JUST AS A REMINDER, SALES TAXES ARE ALWAYS TWO MONTHS BEHIND. SO WHILE WE'VE GONE THROUGH SIX MONTHS OF THE YEAR, WE'VE ACTUALLY ONLY COLLECTED FOUR MONTHS OF SALES TAXES FOR THIS YEAR. SO MOVING REALLY STRONG WITH SALES TAX, AS OF RIGHT NOW, 30% OF OPERATIONAL EXPENDITURES HAVE OCCURRED. WE STILL HAVE TRANSFERS TO MAKE AND SOME OTHER LARGER EXPENSES TO EXPENSE OUT. BUT WITH IN TERMS OF JUST PERSONNEL, WHICH IS OUR SECOND LARGEST EXPENDITURE BEHIND CAPITAL, 45% OF PERSONNEL EXPENDITURES HAVE OCCURRED FOR THE YEAR. SO WE HAVE SOME SAVINGS THERE. AND THEN 16 MILLION BOOKED FOR CAPITAL PROJECTS. WE STILL HAVE SOME CHECKS TO ENTER, SO WE EXPECT TO SEE THOSE GO UP HERE IN THE NEXT QUARTER. AND ESPECIALLY AS WE CONTINUE TO PICK UP AND SPEND ON SOME NEW PROJECTS THAT ARE GOING TO GOING TO BE STARTING SOON, SUCH AS THE PUBLIC WORKS BUILDING. ONE THING WE WANT TO GO OVER, IF YOU REMEMBER, LAST YEAR WE TALKED ABOUT OUR PROPERTY TAX CHALLENGE. WE FOUND AT THE VERY END OF THE BUDGET CYCLE. AS WE WERE GETTING READY FOR THIS YEAR'S BUDGET, WE FOUND THAT THE APPRAISAL, THE CENTRAL APPRAISAL DISTRICT WAS BEHIND IN PROCESSING THEIR EXEMPTIONS AND REFUNDS, AND THAT HAD AN IMPACT ON THE AMOUNT THAT WAS DISBURSED TO US. WE'RE STILL SEEING THAT THIS YEAR, AND THE TOWN'S NOT EXPECTING TO COLLECT 100% OF THEIR PROPERTY TAXES, PARTIALLY BECAUSE WHEN WE DID THE BUDGET, WE WERE REALLY LATE IN THE PROCESS. ONCE WE FOUND OUT HOW FAR BEHIND THEY WERE. SO WE'VE CORRECTED THAT FOR THIS YEAR IN OUR BUDGETING TO MAKE SURE THAT WE'RE ANTICIPATING THOSE COSTS. BUT IN TERMS OF HOW IT'S IMPACTING US THIS YEAR, WE'RE EXPECTING TO SEE A LEVY DECREASE FROM WHAT WE BUDGETED. ABOUT HUNDRED AND 61,077 OF THAT, 77,000 OF THAT IS REFUNDS AND EXEMPTIONS FOR 2023, 126,000 OF THAT IS FOR 2024. AND THEN 158,000 FOR THIS YEAR FOR ADDITIONS AFTER THE CERTIFIED ROLL, PRIMARILY TIED TO THE 65 AND DISABLED EXEMPTION. SO AND JOHN, THIS IS RELATED TO A STATE LAW CHANGE. YES. DID AFFECTED THE APPRAISAL DISTRICT. DID YOU GO OVER THAT BRIEFLY? YEAH. SO THERE WAS SOME LEGISLATION A COUPLE CYCLES BACK THAT JUST ALLOWS THE APPRAISAL DISTRICT TO PROCESS REFUNDS AND GO BACKWARDS, TWO YEARS TO APPLY THOSE. SO THAT'S WHY WE STILL SEE THESE COMING OUT FOR PAST YEARS. THEY ARE CATCHING UP, BUT THEY ARE STILL BEHIND FROM THE LAST REPORT. ANY QUESTIONS [2.E. Briefing - FY2026-2027 Budget Briefing: Preliminary Revenues] ON THAT? IF NOT, I CAN DIVE INTO OUR BRIEFING ON THE BUDGET. OKAY. SO THIS THIS ITEM IS GOING TO BE ON THE PRELIMINARY REVENUES. REVENUES IS ALWAYS A MOVING TARGET. WE'RE CONTINUALLY GETTING NEW INFORMATION IN AS WE'RE DOING THE BUDGET. BUT JUST TO PROVIDE SOME CONTEXT, THIS IS WHAT IT LOOKED LIKE FOR 2026 AND ABOUT WHAT IT'S LOOKING LIKE FOR 2027 IN TERMS OF THE DISTRIBUTION OF WHERE OUR REVENUES COME FROM FOR THE GENERAL FUND, MAINLY PROPERTY AND SALES TAXES, FINANCE A LOT OF WHAT WE DO, AND THEN WE HAVE FINES AND FEES AND ALSO CHARGES FOR SERVICE, SPECIFICALLY THE BULK OF THE CHARGES FOR SERVICES. OUR POLICE CONTRACT WITH HARVEST AND DISH. NOW WE ARE EXPECTING ABOUT NINE AS OF RIGHT NOW. ONCE AGAIN, MY CAVEAT IS THIS IS PRELIMINARY. WE ARE AT THE BEGINNING OF OUR PROCESS, AND WE'RE GOING TO GO THROUGH AND KEEP TRACKING REVENUES. BUT 922,000 IS WHAT WE'RE EXPECTING AS AN INCREASE IN GENERAL FUND REVENUES THAT ARE GOING TO BE USED TO SUPPORT ADDITIONAL OPERATIONAL COSTS JUST FROM INFLATION, AS WELL AS INCREASES IN SALARY OR EQUIPMENT NEEDS, AND THEN ANY NEW NEW ITEMS. AND WE'LL TALK ABOUT THAT IN A FUTURE PRESENTATION. BUT LOOKING AT THE MAJOR REVENUE CATEGORIES WE'RE SEEING, WE DO HAVE EXPECT INCREASES ACROSS THESE CATEGORIES. THEY VARY. BUT FOR PROPERTY TAX 400,000 SALES TAX 313,000. THAT'S A LARGER INCREASE THAN WHAT WE'VE TYPICALLY SEEN. AND WE'LL DIVE INTO THAT A LITTLE BIT MORE DETAIL. BUT THAT'S RELATED TO THE MUNICIPAL DEVELOPMENT DISTRICT AND WHAT IS OCCURRING WITH THAT COMING ONLINE AND HOW SALES TAXES WILL BE REALLOCATED. FRANCHISE FEES CONTINUE TO INCREASE. CONTRACT POLICE SERVICES ARE GOING UP AS WE ENTER OUR LAST YEAR WITH THE CONTRACT WITH HARVEST, THEY'VE REACHED FULL BUILD OUT. SO WE'RE NOW CHARGING FOR EVERY SINGLE HOME THAT THEY COULD BUILD AND HARVEST DEVELOPMENT FEES. WE'RE EXPECTING TO INCREASE BY 100,000 AS OF RIGHT NOW. AND THEN COURT FINES AND FEES HAVE BEEN GOING STRONG. WE'RE EXPECTING $30,000 INCREASE. JUST LOOKING AT OTHER MAJOR REVENUES FROM OTHER FUNDS, YOU HAVE THE SALES TAX. I DON'T HAVE ANY PROJECTIONS ON HOW IT'S GOING UP FROM PRIOR YEAR. SINCE THIS IS THE FIRST YEAR WE'LL COLLECT FOR IT AND WE'RE FACTORING. WE ALSO ARE NOT QUITE SURE EXACTLY HOW MUCH FROM THE ETJ WILL BE RECEIVING, BUT JUST BASED ON WHAT THE EDC AND CD WAS RECEIVING AND TAKING OUT THE PORTION THAT'S GOING TO BE REALLOCATED TO THE GENERAL FUND, WE EXPECT 1.25 MILLION FOR THE MDD. THE SPORTS VENUE SALES TAX SHOULD INCREASE BY ABOUT 27,000 HOTEL OCCUPANCY TAX 60. AND THEN WE HAVE WATER SALES GOING UP 7% AND SALES [00:20:04] GOING UP 5%. THOSE ARE RELATED TO JUST OUR RATE ADJUSTMENTS, BUT PRIMARILY DRIVEN BY INCREASES FROM NEW COMMERCIAL, NEW RESIDENTIAL GETTING ON OUR SYSTEM. AND THEN THE STORM DRAINAGE FEE WAS A NEW ONE AS WELL THIS YEAR, BUT WE'RE EXPECTING TO SEE THAT ONE GO UP 12%. AND THEN I'LL GO THROUGH THIS BRIEFLY. JUST WANT TO HIT EACH OF THE MAJOR REVENUE CATEGORIES AND A LITTLE BIT MORE DETAIL, JUST TO PROVIDE A FULL LOOK FOR COUNCIL IN THE PUBLIC. JUST WANT TO START OFF WITH EACH OF THESE SECTIONS REALLY QUICKLY, PRIMARILY FOR THE PUBLIC, JUST LETTING THEM KNOW HOW THE MONEY IS SPENT, WHAT IT'S, WHAT THE REVENUE SUPPORT. SO PROPERTY TAXES SUPPORT OUR GENERAL FUND OPERATIONS. SO THINK POLICE AND STREETS AND ALSO OUR DEBT SERVICE FOR STREETS. THOSE ARE SOME OF THE PRIMARY EXPENSES THAT ARE SUPPORTING SALES TAX ALSO SUPPORTS OUR GENERAL FUND OPERATIONS. BUT WE'LL ALSO SUPPORT THE MUNICIPAL DEVELOPMENT DISTRICT THAT WILL BEGIN ON TEN ONE. AND THEN ALSO THE SPORTS VENUE FUND, WHICH SUPPORTS THE DEBT SERVICE PAYMENTS FOR THE STAR CENTER, AND THEN OUR HOTEL OCCUPANCY OCCUPANCY TAX THAT SUPPORTS OUR STAR CENTER AND HOTEL CONFERENCE CENTER DEBT PAYMENTS, AS WELL AS ANY ADDITIONAL FUNDS, CAN BE USED TO PROMOTE TOURISM OR SUPPORT THE HOTEL AND CONFERENCE CENTER INDUSTRIES WITHIN OUR COMMUNITY. LOOKING AT PROPERTY TAXES, HISTORICALLY, WE'VE BEEN AVERAGING A 25% INCREASE PER YEAR. THAT IS HEAVILY IMPACTED, ESPECIALLY IN 23 TO 24, WHERE WE SAW A JUMP AS VALUES KIND OF REBOUNDED FROM COVID STARTING IN 22 AND THEN REALLY REACHED THEIR FULL THEIR FULL TILT THERE IN 23 TO 24. AND OUR VALUES ARE BEING PRIMARILY INCREASED BY NEW RESIDENTIAL AND NEW COMMERCIAL COMING INTO THE COMMUNITY. SO AS WE GROW, WE GET ADDITIONAL HOMES AND ADDITIONAL BUSINESSES THAT PAY INTO OUR PROPERTY TAX BASE. AND THE GENERAL FUND FOR THE LAST TWO YEARS, THOUGH, HAS BEEN AVERAGING ABOUT AN 8% INCREASE IN COLLECTIONS. SO THAT EQUATES TO ABOUT 400 000 PER YEAR. AND THAT'S ABOUT WHAT WE'RE FORECASTING. AND WE'VE ALREADY TALKED ABOUT THE RECENT CHALLENGES FOR THE LAST COUPLE OF YEARS THAT WE'VE BEEN EXPERIENCING. AND THEN FOR THIS CURRENT YEAR, AS I MENTIONED, WE'RE EXPECTING AN 8% INCREASE IN THE GENERAL FUND. AND JUST TO BE CLEAR FOR COUNCIL RIGHT NOW, WE'RE STILL IN THE 38% OF PROPERTIES AS OF THE LAST TIME I CHECKED, ARE CURRENTLY UNDER PROTEST. SO 38% IS LESS THAN 50%. BUT THERE'S SOME BUSINESSES IN THERE THAT TAKE UP A LOT OF THE VALUE. SO YOU'LL SEE THERE THAT 3.2 BILLION OF 1.5 5.1 BILLION IN OUR TAXABLE VALUE IS CURRENTLY UNDER PROTEST RIGHT NOW. SO WE'LL HAVE TO WAIT TO SEE HOW THOSE PANS OUT AS WE GET CLOSER TO THE CERTIFIED RULE TO SEE EXACTLY WHERE WE'RE REALLY LANDING WITH PROPERTY TAXES FOR SALES TAXES. NORTH LAKES BEEN DOING WELL FOR THE LAST SEVERAL YEARS. WE'VE AVERAGED 13% INCREASES ANNUALLY. WE'VE BEEN HAVING WE HAVE ALSO ONE TIME PAYMENTS THAT ARE USUALLY TIED TO CONSTRUCTION. AND THOSE HAVE AVERAGED ABOUT 340,000 ANNUALLY AS WELL. THIS YEAR, WE HAVE SEEN THAT THINGS ARE SLOWING, SLOWING A BIT. WE'VE SEEN YEAR OVER YEAR JUST A 1% INCREASE THAT ALWAYS HAS THE POTENTIAL TO REBOUND AND GO BACK UP. BUT WE'VE RECEIVED SIGNIFICANT ONE TIME REVENUE THIS YEAR RELATED TO CONSTRUCTION, ALMOST 790,000 IN CONSTRUCTION SALES TAX PAYMENTS. WE TREAT THOSE AS ONE TIME, EVEN IF THEY MIGHT OCCUR FOR MULTIPLE YEARS, BECAUSE EVENTUALLY, AT SOME POINT THAT CONSTRUCTION THAT'S FINANCING, THOSE ARE GOING TO IT WILL STOP. BUT WE ARE PROJECTING 4.1 MILLION AS OF RIGHT NOW IN ONGOING SALES TAX REVENUES. THAT'S NOT AND NOT COUNTING POTENTIAL ONE TIME THAT'S HARD TO HIT. AND THEN WE ALSO WILL SEE HELP GOING INTO THE GENERAL FUND WITH THE REALLOCATION OF 250,000 THAT USED TO GO TO THE EDC AND CDC. THAT WILL GO TO THE GENERAL FUND ONCE THE MDD COMES ONLINE IN OCTOBER, AND THEN HOTEL OCCUPANCY TAX THAT'S BEEN TRENDING UPWARD AS NEW HOTELS HAVE COME ONLINE. WE'VE ADDED THE CAMBRIA THIS LAST YEAR. STAYBRIDGE IS NEARING COMPLETION, SO WE'RE PROJECTING 940,000 AT THE END OF THIS FISCAL YEAR. AND WE'RE LOOKING HONESTLY AT PROBABLY $1 MILLION IN HOTEL OCCUPANCY TAX IN 27. AND THERE ARE TWO HOTELS THAT ARE ADDITIONAL HOTELS THAT ARE COMING ONLINE, HOPEFULLY BY 20, BY 28. AND THOSE ARE UNDER CONSTRUCTION. UTILITY REVENUES IS ANOTHER MAJOR SOURCE FOR US, AND THAT REALLY SUPPORTS THE OPERATING AND EQUIPMENT EXPENSES TIED TO WATER, SEWER AND STORM DRAINAGE OPERATIONS THAT ALSO SUPPORTS INFRASTRUCTURE GROWTH IN THOSE AREAS. AND THAT'S USUALLY TIED TO RESIDENTIAL AND COMMERCIAL GROWTH OR REGULATIONS THAT WE HAVE TO MEET AND THAT ARE UNFUNDED MANDATES. AND THEN AS WELL AS JUST MAINTAINING, REPAIRING OR UPGRADING OUR EXISTING SYSTEM. SO AN EXAMPLE OF THAT WAS THE CELLULAR METER PROJECT WE DID A COUPLE OF YEARS AGO. THAT WAS AN UPGRADE TO AN EXISTING SYSTEM THAT'S REALLY HELPED TO HELP THE TOWN. SO TREND WISE, IT'S BEEN INCREASING EACH YEAR, NEW HOMES, NEW BUSINESSES. THEY HOP ON OUR SYSTEM. WE OBVIOUSLY COLLECT ADDITIONAL REVENUE. WE'VE ALSO FOLLOWED COUNCIL'S DIRECTION TO TRY AND DO ANNUAL RATE ADJUSTMENTS INSTEAD OF MASSIVE ONES. EVERY COUPLE OF YEARS. YOU CAN KIND OF SEE THAT PLAY OUT IN THE 23 TO 24 WHERE WE [00:25:01] DID, I TRIED, WE DID A CATCH UP YEAR IN 23 TO 24, AND YOU SAW REVENUES REALLY JUMP AND THEN START TO KIND OF STABILIZE AND HAVE A MORE A MORE PREDICTABLE INCREASE. SO RIGHT NOW WE'RE GOING WITH THE 7% AND 5% INCREASE, RESPECTIVELY, FOR WATER AND SEWER. THAT COULD CHANGE AND COULD EITHER COME DOWN OR GO UP. WE'RE CURRENTLY WORKING WITH OUR THIRD PARTY FIRM, NUGEN, WHO HELPS US DO OUR RATE STUDIES TO DO IT EVEN EARLIER THIS YEAR TO MAKE SURE THAT WE REALLY FACTOR INTO THE BUDGET AND SEE IF THERE'S ANY ROOM TO TRY AND REDUCE THE INCREASES. AND THEN THE STORM DRAINAGE FEE WAS A NEW ONE THAT WE IMPLEMENTED IN 26. SO FAR THIS YEAR, WE'VE COLLECTED 248,000. AND THAT MONEY IN IS BEING USED TO HELP REIMBURSE THE GENERAL FUND RIGHT NOW FOR PRIOR STORM DRAINAGE EXPENSES. IF YOU REMEMBER, WE HAVE THE THE STUDY THAT WE HAD TO DO. AND THEN WE BROUGHT THE INSPECTOR IN LINE AND THE VEHICLE FOR THE INSPECTOR. WE PAID ALL THAT WITH GENERAL FUND MONEY. SO THE STORM DRAINAGE FEE IS PAYING THAT BACK RIGHT NOW. WE EXPECT TO COLLECT 427,000 THIS YEAR. WE'RE TRENDING THAT DIRECTION. AND 440,000 IS WHAT WE THINK WE'LL COLLECT IN 2027 AS OF RIGHT NOW. AND THEN OUR LAST MAJOR CATEGORY IS FINES AND FEES. SO WE'VE GOT THREE DIFFERENT ONES THAT I WANT TO HIT DEVELOPMENT REVENUES, FRANCHISE FEES AND MUNICIPAL COURT DEVELOPMENT REVENUES. THOSE WE TREAT AS ONE TIME THEY'RE TIED TO NEW CONSTRUCTION, NEW RESIDENTIAL PERMITS, AND IT'S USED TO HELP FINANCE ONE TIME PURCHASES LIKE EQUIPMENT, BUT IT'S ALSO TIED TO CONTRACTED SERVICES. SO AS DEVELOPMENT ACTIVITY GOES UP OR DOWN AND AS REVENUES GO UP OR DOWN, THE AMOUNT THAT WE PAY TO THOSE SERVICES ALSO GO UP AND DOWN. SO IF WE STOP DOING DEVELOPMENT TODAY, WE NO LONGER PAY FOR THOSE SERVICES. THAT WOULD BE AN EXPENSIVE ROLL OFF OUR BOOKS. FRANCHISE FEES. THOSE CONTINUE TO GO UP. THEY SUPPORT GENERAL FUND OPERATIONS. THOSE ARE CONNECTED TO RESIDENTIAL, PRIMARILY TO NEW RESIDENTIAL GROWTH AND THEN MUNICIPAL COURT AND SUPPORTS COURT OPERATIONS AND POLICE OPERATIONS FOR MUNICIPAL COURT FINES AND FEES. REALLY BRIEFLY, DEVELOPMENT PERMITS AND FEES. REVENUE TENDS TO BE A VOLATILE SOURCE. YOU CAN SEE IT KIND OF GOES UP AND DOWN BASED ON WHAT'S COMING AND WHAT WHAT PAYS FOR A PERMIT. WE'RE PROJECTING 2.2 MILLION THIS YEAR. THERE'S ALWAYS THE POSSIBILITY THAT IT JUMPS. IF SOMEONE PAYS FOR A FOR A LARGE PERMIT. AND THEN WE'LL FORECASTING JUST 2.3 MILLION IN 27. WE TEND TO BE CONSERVATIVE ON THAT. JUST TO NOT RELY ON HOPING THAT A ONE TIME BIG JUMP COMES IN A YEAR. FRANCHISE FEES, AS I SAID, THOSE ARE TIED TO RESIDENTIAL GROWTH. THOSE CONTINUE TO INCREASE AT ROUGHLY A RELATIVELY STABLE RATE. IT'S AVERAGING ABOUT 100,000 A YEAR. EVENTUALLY, THOSE WILL SLOW AS DEVELOPMENT SLOWS, BUT RIGHT NOW THEY CONTINUE TO TREND UPWARD. WE'RE PROJECTING 1.3 MILLION THIS YEAR, AND WE'RE BEING A BIT CONSERVATIVE, JUST PROJECTING ABOUT 65,000 INCREASE THIS YEAR. AND THEN COURT FINES AND FEES. THOSE HAVE TAKEN OFF THE LAST COUPLE OF YEARS. SO THAT'S PRIMARILY BECAUSE COUNCIL DID APPROVE POLICE HIRING ADDITIONAL TRAFFIC OFFICERS WHO COULD THEN FOCUS ON TRAFFIC OPERATIONS, ESPECIALLY WITH THE AMOUNT OF TRAFFIC THAT'S BEEN INCREASING IN THE AREA. SO ALL OF THOSE FACTORS HAVE LED TO HIGHER COURT FINES AND FEES THAT CAN BE USED AS SUPPORT TO COVER COURT OPERATIONS AND THEN HELP SUPPLEMENT POLICE OPERATIONS. RIGHT NOW, WE'RE TRENDING TOWARDS 780,000. WE MIGHT HONESTLY HIT 800,000 THIS YEAR. AND THEN WE'RE FORECASTING 810,000 FOR 27. AND WITH THAT, HAPPY TO ANSWER ANY QUESTIONS. GO BACK TO A SLIDE WHATEVER YOU ALL NEED. QUESTION, JOHN. YEAH. A COUPLE OF YEARS BACK, WE SWITCHED OVER TO COURT OF RECORD. YES. HOW HAS THAT IMPACTED OUR REVENUES? I BELIEVE WE OFFICIALLY YOU ALL PASSED THE ORDINANCE A COUPLE YEARS AGO. WE GOT IT UP AND RUNNING THIS YEAR. SO AND I'M NOT QUITE SURE IF IT'S IS IT TIED TO INCREASED REVENUES? DREW. I'M NOT WE HAVEN'T SEEN ANY MAJOR JUMP YET, BUT WE'LL WE'LL TRY TO CHECK THAT THERE WAS A THERE WAS A LITTLE BIT INCREASE IN EXPENSE, BUT WE WERE USUALLY PRETTY GOOD AT KEEPING THOSE IN OUR COURT, EVEN THOUGH WE WEREN'T COURT OF RECORD. THEY'RE FORCED TO STAY IN OUR COURT NOW, BUT WE HAVEN'T. WE HAVEN'T SEEN A BIG JUMP. BUT WE'LL WE'LL START TRACKING THAT. WE HAVEN'T HAD LIKE A GOOD YEAR TO YEAR COMPARISON YET. YEAH. AND WE DID JUST START THAT IN JANUARY OFFICIALLY. SO. I SHOULD SAY OH THERE YOU GO COUNCIL. ANY OTHER QUESTIONS. THANK YOU FOR A THOROUGH REPORT AS ALWAYS I APPRECIATE THAT. ALL RIGHT. THAT CONCLUDES THE ANNOUNCEMENTS AND PRESENTATIONS SECTION. SO WE WILL START NOW [3. PUBLIC INPUT] WITH PUBLIC INPUT. I HAVE MY FIRST CARD HERE. MR. MCGREGOR IF YOU'D LIKE TO COME UP. JOEL MCGREGOR 8921 EAST SAM LEE LANE. A COUPLE OF COMMENTS FROM LAST TIME. AFTER I SPOKE, YOU [00:30:04] MENTIONED THAT WE HAD THE LOWEST TAX RATE IN THE AREA. WELL, I JUST SPENT ABOUT FIVE MINUTES GOOGLING IT. AND THERE'S FOUR NEARBY TOWNS THAT HAVE DRASTICALLY LOWER TAX RATES THAN, WHAT? THREE OF THEM HAVE DRASTICALLY LOWER BARTONSVILLE $0.17. DOUBLE OAK $0.17, COPPER CANYON 26 AND WESTLAKE $0.16. AND ALSO, YOU SAID THAT PEOPLE LIKED OUR TAX STRUCTURE. IF YOU GOT CONFIDENCE THAT THEY LIKE IT, WHY DIDN'T IT GO ON THE BALLOT? SO YOU COULD ASK THEM. YOU KNOW, I THINK THAT WOULD BE A GOOD THING. AND THEN ON THE AGENDA ITEMS, WE'RE BORROWING ANOTHER $21,250,000. AND I REALIZE SOME THINGS END UP NEEDING TO BE DONE AND WHATNOT, BUT WE JUST KEEP BORROWING MORE AND MORE AND MORE MONEY, AND WE'RE NOT GOING TO BE ABLE TO KEEP OUR TAX RATE AT 29.5. IF WE KEEP BORROWING MONEY, IT'S GOT TO COME FROM SOMEWHERE. SO I HOPE WE CAN LOOK AND SEE HOW MUCH TOTAL DEBT WE HAVE. AND BEFORE WE JUST KEEP ON TRUCKING WITH MORE AND MORE DEBT. THANKS. JUST FOR RECORD, THE WHEN WE TOOK THE LOWEST TAX RATE OF ANY HOME RULE MUNICIPALITY IN NORTH TEXAS. SO JUST FOR CLARITY, THOSE TOWNS ARE NOT HOME RULE. AND THE TAX RATES IN WESTLAKE, I'VE TALKED TO THEIR MAYOR. THEIR AVERAGE HOUSEHOLD VALUE IS ABOUT $2.5 MILLION AS WELL. SO THEY COLLECT TWO AND A HALF TIMES THE TAXES REVENUE THAT WE COLLECT AS A MUCH SMALLER TOWN. ANYWAYS, IT'S JUST JUST FOR YOUR INFORMATION, GOOD RESEARCH. THANK YOU. ANYBODY ELSE THIS EVENING FOR PUBLIC INPUT. COME ON. LAURA MANCINI, 1605 SCHOBER ROAD WITH THE SUNSET OF THE EDC AND CDC AND THE UPCOMING DISCUSSION ON THE SUBCOMMITTEE TO CHOOSE MDD MEMBERS. I JUST WANT TO TAKE A MINUTE AND LET YOU ALL KNOW THAT I'D BE HONORED TO BE CONSIDERED FOR THE MDD. WE JUST HAD OUR LAST EDC MEETING LAST WEEK, AND IT WAS FUN REMINISCING ABOUT ALL THE REALLY COOL ACCOMPLISHMENTS THAT WE'VE MADE OVER THE YEARS. BUT THE THE ONE THING I'M MOST PROUD OF IS REALLY THE CULTURE AS PRESIDENT THAT I'VE BEEN ABLE TO INSTITUTE IN EVERY TERM THAT I'VE SERVED IN THAT BOARD. WHEN I FIRST STARTED, IT WAS VERY, VERY DIFFERENT. BUT OVER TIME, WE'VE BEEN ABLE TO HAVE A CULTURE WHERE EVERYONE'S INPUT IS LISTENED TO. THEY FEEL EMPOWERED TO SPEAK UP. AND BECAUSE OF THAT, WE HAVE REALLY FRUITFUL DISCUSSION AND WE MAKE VERY INFORMED, IMPORTANT DECISIONS. SO AGAIN, I'D BE HONORED TO BE CONSIDERED FOR THE MDD, AND I WOULD LOVE TO BE ABLE TO BRING THAT CULTURE WITH ME, WITH ME. SO THANK YOU. THANK YOU VERY MUCH. MAKE SURE YOU TURN IN YOUR CARD TO THE TOWN SECRETARY. ANYBODY ELSE THIS EVENING? YES, SIR. GOOD EVENING, MAYOR. TOWN COUNCIL MEMBERS, I APOLOGIZE. I'VE BEEN UNDER THE WEATHER FOR THE WEEK. SO MY NAME IS PETE KARCZEWSKI. I LIVE AT RACHEL STREET IN IN PECAN SQUARE, NORTHLAKE, TEXAS. AND LIKE LAURA, I AM ALSO A MEMBER OF THE EDC. I DON'T THINK I NEED TO REITERATE THE ACCOMPLISHMENTS THAT WE WENT THROUGH AN ACCOMPLISHED, YOU KNOW, OVER THE TWO YEARS THAT I'VE BEEN WITH THE WITH THE BOARD. I'M ALSO A DIRECTOR ON THE CITIZENS POLICE ACADEMY ALUMNI ASSOCIATION, AND I AM CURRENTLY DRIVING A GOLF TOURNAMENT TO SUPPORT THE NORTH LAKE POLICE DEPARTMENT AND FOR THEIR BENEVOLENCE FUND AND FOR INJURIES AND ALSO TRAINING EQUIPMENT AND THE CHIEFS SNACK PACK PROGRAM. AND I ALSO WOULD LIKE TO BE CONSIDERED AS A MEMBER OF THE BOARD. THANK YOU, THANK YOU. MAKE SURE YOU FILL OUT A PUBLIC INPUT CARD AND GET IT TO STAFF BEFORE YOU LEAVE. THANK YOU. ANYBODY ELSE THIS EVENING? ALL RIGHT. SEEING NONE, WE WILL MOVE ON TO OUR ACTION ITEM. I'M SORRY. CONSENT ITEMS THIS EVENING. COUNCIL, WE HAVE [4. CONSENT ITEMS] THREE ITEMS ON CONSENT. I WILL ACCEPT ANYTHING FOR BEING PULLED OR MOTION. MAKE A MOTION [4. VOTE] TO APPROVE. I'LL SECOND MOTION TO APPROVE FROM DOCTOR SESSIONS. AND SECOND FROM MAYOR PRO TEM LAWRENCE. [00:35:07] MOTION CARRIES. UNANIMOUS. WITH THAT, WE WILL PROCEED TO OUR ACTION ITEMS [5.A. Consider adoption of an ordinance of the Town of Northlake, Texas, providing for the issuance of Town of Northlake, Texas Combination Tax and Limited Surplus Revenue Certificates of Obligation, Series 2026, in the approximate aggregate principal amount of $21,250,000; levying a tax in payment thereof; prescribing the form of said certificates and awarding the sale thereof; authorizing the execution and delivery of a Paying Agent/Registrar Agreement; approving the Official Statement; and enacting provisions incident and relating to the subject and purposes of this ordinance] THIS EVENING. JOHN, ARE YOU DOING ALL RIGHT, DREW? YOU'RE JUST GETTING OUT OF EVERYTHING TONIGHT. THAT'S MY REWARD. TO HAVE ALL THIS GREAT STAFF. YES. WELL PLAYED. OKAY. WE'LL TALK ABOUT THE DEBT ISSUANCE REALLY QUICK. SO SO JUST A REMINDER, THESE ARE THIS IS THE PROCESS THAT WE'VE GONE THROUGH SO FAR. I FORGOT TO INCLUDE ON HERE THAT ON APRIL 9TH, IN ADDITION, THE NOTICE OF INTENT, WE DID THAT INTENT TO REIMBURSE FOR PROJECT COSTS FOR SEVERAL PROJECTS. AND THEN ON THE 11TH, WE DID ISSUE THE FIRST INTENT AND THEN WE DID IT FOLLOWED WITH THE SECOND NOTICE IN THE PAPER ON THE 18TH STAFF THEN MET WITH THE RATING AGENCIES, GOT THAT TAKEN CARE OF. AND ON THE 19TH THEY GOT THE FINAL RATING UPDATE BACK. TOWN MADE ITS MAINTAINED ITS CURRENT STATUS. AND THEN TONIGHT, COUNCIL IS LOOKING AT PASSING AN ORDINANCE AUTHORIZING THE ISSUANCE OF DEBT. AND I'LL BRING UP OUR FINANCIAL ADVISORS AND IF NEEDED, BOND COUNCIL AS WELL TO ANSWER ANY QUESTIONS IN JUST A MOMENT. AND THEN THERE'LL BE THE CLOSING AND DELIVERY FUNDS ON JUNE 26TH. JUST AS A REMINDER, THESE ARE THE PROJECTS THAT WE'RE LOOKING TO FINANCE WITH THE CERTIFICATES OF OBLIGATION FOR THIS YEAR. YOU'VE GOT SEVERAL WATER PROJECTS ON THERE, A BUILDING PROJECT AND A ROAD PROJECT. THE PUBLIC WORKS BUILDING. WE ARE WRAPPING UP THE THE BID EVALUATION PROCESS AND HOPE TO BRING THAT TO COUNCIL SOON TO AWARD AND FOLLOW THAT WITH CONSTRUCTION SHORTLY AFTER WE RECEIVE THE FUNDS IN JUNE. AND THEN THERE'S THE K LANE RECONSTRUCTION PROJECT. THAT'S IN TANDEM WITH THAT. AND AS WELL AS THE CANYON FALLS TRAIL REPAIR PROJECT. AND THEN THE REST ARE ALL WATER. SO AS A NOTE TO PUBLIC HERE, THIS IS A BIG PACKAGE OF DEBT. HOWEVER, THE REPAYMENT COMES FROM MANY SOURCES LIKE WATER IMPACT FEES, WATER SUBSCRIPTION FEES, SEWER SUBSCRIPTION FEES, ALL THESE VARIOUS THINGS COME FROM DIFFERENT FUNDS. NOT ALL OF THEM ARE SUPPORTED DIRECTLY BY PROPERTY TAX. YEAH. THE ONLY ONE THAT IS TRULY SUPPORTED BY PROPERTY TAX, AS WE ALWAYS TRY TO DO, IS OUR ROAD PROJECTS. SO THEY'LL BE RECONSTRUCTION. AND THEN THE PART OF THE PUBLIC WORKS BUILDING, SINCE IT HOUSES OUR STREETS DEPARTMENT. THE REST OF THIS IS INTENDED TO BE PAID FROM OTHER SOURCES, PRIMARILY UTILITY REVENUES, OR IN THE CASE OF THE CANYON FALLS PROJECT, TO BE PAID BY THE TAX INCREMENT REINVESTMENT ZONE. THAT COVERS IT RIGHT THERE. SO VERY GOOD. THANK YOU. NO PROBLEM. AND THEN THEY ARE OUR FINANCIAL ADVISORS AND BOND COUNCIL. CORRECT ME IF ANY OF THESE NUMBERS ARE WRONG. I DID PULL THIS FROM THE INFORMATION THEY SENT ME TODAY. SO HOPEFULLY I GOT IT CORRECT. BUT WE DID A COMPETITIVE SALE. TOTAL BOND PROCEEDS OR TOTAL PROCEEDS FOR THE PROJECT IS 22.6. THE AMOUNT THAT WE'LL BE PAYING BACK IS THE 21.4. THERE WAS A BOND PREMIUM OF 1.2. AND THEN THE TRUE INTEREST COST WAS 3.95 WAS THE LOWEST ONE. AND WITH THAT, LET ME TURN IT OVER TO OUR FINANCIAL ADVISORS AND BOND COUNCIL. THEY CAN DO THEIR PRESENTATION, ANSWER ANY QUESTIONS. THEY'LL KNOW MORE THAN ME. GOOD EVENING, MAYOR AND COUNCIL. MY NAME IS QUINT NGUYEN. DOING ALONGSIDE MARTY SHOES PASSING OUT PACKET OF INFORMATION FOR YOU ALL. AND ALSO WE'RE JOINED BY JULIE PARTAIN WITH BOND COUNCIL AS WELL. THANK YOU MARTY. TODAY YOUR BONDS WERE SOLD THROUGH A COMPETITIVE SALE. AND WHAT THAT MEANS IS ANY UNDERWRITER HAD THE OPPORTUNITY TO SUBMIT A BID FOR THE RIGHT TO PURCHASE AND SELL YOUR BONDS TO THE PUBLIC. IN FRONT OF YOU AGAIN, IS A PACKET OF INFORMATION THAT WILL BE GOING THROUGH DETAILING THE SUMMARY OF THE SALE TODAY. BEHIND TAB A, WE HAVE INCLUDED A LIST OF BIDS RECEIVED. I'M PLEASED TO REPORT THE TOWN RECEIVED SIX DIFFERENT BIDS, WITH RAYMOND JAMES COMING IN AT A TIC OR TRUE INTEREST COST OF 3.94%. TYPICALLY, WE LIKE TO SEE A MINIMUM OF THREE BIDS. SO THE FACT THAT WE RECEIVED SIX TODAY IS A GREAT RESPONSE TO THE MARKET. BEHIND THIS PAGE IS A FULL SET OF NUMBERS THAT WE HAVE INCLUDED. THE BONDS WERE STRUCTURED WITH A 20 YEAR REPAYMENT TERM WITH NO ADDITIONAL TAX RATE IMPACT TO THE TOWN. I WANT TO POINT OUT THE PROJECT. THE TOTAL THE TOWN WILL RECEIVE IS 22.3 MILLION, AND THE FUNDS ARE SET TO BE RECEIVED ON JUNE 25TH. BEHIND TAB B. WE HAVE ALSO INCLUDED A CHART TO VISUALIZE WHERE THIS RATE FALLS IN LINE WITH THE MARKET IN COMPARISON WITH THE MARKET TODAY, AS SHOWN BY THE RED LINE. AGAIN, THAT 3.94% WAS THE RATE RECEIVED TODAY, AND THE GREEN LINE DEPICTS A WEEKLY COMPARATIVE INDEX THAT WE TRACKED, CONSISTING OF 20 YEAR GENERAL OBLIGATION BONDS, WHICH IS CURRENTLY SITTING AT A 4.89%. SO WE FALL WELL BELOW THAT THRESHOLD. TODAY. THE FAVORABLE RATE RECEIVED TODAY WAS DUE IN PART TO THE CREDIT RATING THAT WAS APPLIED TO FOR BY S&P AND FITCH RATINGS. I'M PLEASED TO REPORT THAT BOTH S&P AND FITCH CAME BACK AND AFFIRMED THE [00:40:03] TOWN'S RATING AT A DOUBLE A, WHICH IS AGAIN, ONLY TWO NOTCHES AWAY FROM A PERFECT SCORE. BEHIND TAB C IS A FULL LIST OF THE REPORTS THEY CAME BACK WITH, AND AS AN EXAMPLE, A CREDIT RATING IS SIMILAR TO ONE'S PERSONAL CREDIT SCORE, WITH A HIGHER CREDIT RATING OR CREDIT SCORE, THE LOWER THE RATE ONE WOULD RECEIVE ON A CAR LOAN OR A MORTGAGE, FOR EXAMPLE. ALL IN ALL, THIS IS THE LAST STEP OF THE BOND ISSUANCE PROCESS, AND THE BONDS ARE SET TO BE DELIVERED ON JUNE 25TH. AND BY EFFECTIVELY ADOPTING THE ORDINANCE TONIGHT, THE TOWN WILL BE EFFECTIVELY ACCEPTING THIS INTEREST RATE, WHICH WILL REMAIN FIXED FOR THE LIFE OF THE BONDS. AGAIN, THANK YOU FOR YOUR TIME. I AM HAPPY TO ANSWER ANY QUESTIONS YOU ALL MAY HAVE. COUNCIL. ANY QUESTIONS? DOCTOR SESSIONS SINCE SINCE BOND RATES ARE PRETTY INSECURE RIGHT NOW IS IT IS TIME FOR US OR AGAINST US? I WOULD LIKE TO SAY EVERY DAY IN THE MARKET IS DIFFERENT, AND THE FACT THAT THE TOWN RECEIVED A THREE POINT, EXCUSE ME, 3.94% TODAY IS A REALLY GREAT RESPONSE. ONE DAY IN THE MARKET, ONE MIGHT NOT BE ABLE TO RECEIVE AS MANY BIDS. AND TODAY WE'VE RECEIVED SIX. SO I JUST WANT TO REITERATE THAT FACT. IT WAS A GOOD DAY. IT WAS A GOOD DAY. IF I COULD JUMP UP AND JUST ADD FOR JUST SOME COLOR CONTEXT, AS YOU'RE AWARE, YOU'RE PROBABLY FOLLOWING THE HEADLINES. WE ARE IN A PERIOD OF PROLONGED VOLATILITY AS FAR AS INTEREST RATES GO, ESPECIALLY WITH ALL OF THE MAJOR GEOPOLITICAL HEADLINES THAT ARE COMING OUT. OUR KIND OF MOTTO TODAY IS GET IN, GET OUT, GET OUT QUICKLY AND AND GO WITH THE RATE THAT YOU GOT RIGHT, BECAUSE THERE IS SO MUCH VOLATILITY. WE HAVE SEEN MARKET RATES SHIFT MORE IN THE LAST COUPLE YEARS THAN I'VE SEEN IN MY ENTIRE CAREER. SO YOU'VE PROBABLY REMEMBER, I'VE BEEN UP HERE A COUPLE TIMES. WE'VE TALKED ABOUT THAT VOLATILITY. AND THE FACT THAT YOU ARE BELOW 4% IS STILL VERY DESIRABLE. SO THERE ARE EVEN IN THE MOST RECENT MONTHS WHERE WE'VE SEEN THE RATES KIND OF UP GO UPWARD OVER 4%. AND WE ARE EXPECTING ADDITIONAL CHANGES MOVING FORWARD. SO AGAIN, YEAH, HUNDREDS OF TOWNS THAT EVEN HAVE A TRIPLE A RATING ARE PAYING 5% RIGHT NOW. SO 3.94 IS REALLY GOOD. WE SHOULD BE PROUD. YEAH. I WOULD SAY WE THE HIGHER RANGE OF SIMILAR RATED TRANSACTIONS. MOST RECENTLY WE'VE SEEN UPWARD OF 420 TO 430 MOST RECENTLY. BUT YOU'RE CORRECT IN THE SENSE OF SOME OF THOSE ARE HAVE 5% COUPONS. THAT'S PROBABLY WHAT YOU'RE LOOKING AT. BUT ABSOLUTELY ANYTHING OF THIS RANGE IS STILL WHAT WE CONSIDER VERY ECONOMICALLY BENEFICIAL FOR MUNICIPALITIES TODAY. THANK YOU VERY MUCH. I'M VERY PLEASED WITH THE RATE. I THOUGHT WE'D COME BACK AT ABOUT 4.1. AND SO ANYTHING UNDER THAT PLEASANTLY SURPRISED. QUESTIONS. ANYONE [5.A. VOTE] ELSE. MOTION TO APPROVE. WOW. THERE WE GO. MOTION TO APPROVE FOR MISS HOLMES. SECOND. WOW. ALL RIGHT. WHO WANTS IT. ALRIGHT. SECOND FROM MR. PROSCIUTTO. ERIC. BETTER START DIGGING. WE GOT SOME ROADS TO FIX, SOME WATER TO BUILD. SO GET GET GOING. TAKE YOUR SIGN HOME AND COME IN EARLY TOMORROW. MOTION CARRIES. UNANIMOUS. ALRIGHT. NEXT ITEM TONIGHT IS [5.B. Consider approval of a Resolution of the Town of Northlake, Texas, appointing a Mayor Pro Tem to serve a one-year term beginning June 1, 2026 and ending May 31, 2027] APPROVAL RESOLUTION TOWN NORTH LAKE APPOINTING A MAYOR PRO TEM. ALL RIGHT, I'LL JUST SAY THAT MERYL HAS SERVED VERY HONORABLY AND VERY WELL. SHE'S BEEN TO SOME EVENTS IN MY STAY WHEN I'VE BEEN UNAVAILABLE, AND I HEAR NOTHING BUT POSITIVE THINGS BACK. SO JUST THE REPORT ON MY VIEW AS HER SERVING AS MAYOR PRO TEM HAS BEEN WONDERFUL. BUT AS A COUNCIL DECISION, NOT MINE. SO WE CAN TAKE NOMINATIONS. I WOULD LIKE TO NOMINATE MERYL. MERYL LORENZ [5.B. VOTE] AS OUR PRO TEM FOR THE NEXT TERM. VERY GOOD. I'LL SECOND THAT. I HAVE A SECOND FOR MR. FOWLER. WE WILL TAKE A VOTE. YOU CAN'T VOTE. OH, SHE SAID, YES, I CAN. MOTION CARRIES. UNANIMOUS. CONGRATULATIONS, MERYL. YOU'VE SERVED US WONDERFULLY AND I LOOK FORWARD TO CONTINUE WORKING. THANK YOU. IT'S BEEN A PRIVILEGE AND I'M HONORED TO CONTINUE TO SERVE. AND I APPRECIATE YOUR VOTE OF CONFIDENCE FROM ALL OF YOU VERY MUCH. THANK YOU VERY MUCH. ALL [5.C. Consider appointments/reappointments for the Planning & Zoning Commission Places 1-7 for a one-year term beginning June 1, 2026 and ending May 31, 2027] [00:45:04] RIGHT. NEXT, WE HAVE CONCERNING APPOINTMENTS AND REAPPOINTMENTS FOR P AND Z. I KNOW SOME OF THE COUNCIL HAVE SERVED ON P AND Z BEFORE, AND IT'S A VERY IMPORTANT ROLE IN OUR TOWN. THEY MEET MONTHLY. IT'S CRITICAL THAT THE PEOPLE WHO APPLY THIS BOARD ATTEND AND ATTEND ON A REGULAR BASIS AND HAVE THEIR INPUT HEARD AND FOLLOW KIND OF COUNCIL DIRECTION AND THINGS THAT WE WANT TO SEE HAPPEN THROUGHOUT HERE. AND THAT'S WHY THE REASON THAT WE APPOINT THEM IS TO HELP US IN THOSE EARLY PHASES OF DECISION MAKING. SO I'M NOT SURE IF WE HAVE ANY DISCUSSION OR MOTIONS, BUT I'LL TAKE ONE. FIRST OF ALL, I'D LIKE TO SAY THESE COMMITTEES ARE VERY IMPORTANT. NO MATTER WHAT COMMITTEE, THERE ARE PLANNING AND ZONING, ESPECIALLY ONE OF THE BIG. I BELIEVE THAT THE. THE MOST IMPORTANT THING IS ATTENDANCE. BEING ABLE TO ATTEND THESE MEETINGS NO MATTER WHAT COMMITTEE YOU'RE ON AND HOW WE SERVE, BECAUSE IT'S ALL ABOUT SERVING THE TOWN. YOU CAN'T DO THAT IF YOU'RE NOT [5.C. VOTE] PRESENT. WITH THAT BEING SAID, I'D LIKE TO MAKE A MOTION UNLESS SOMEBODY HAS ANYTHING AGAINST THAT AGAIN. SO I WOULD LIKE TO RETAIN SEATS ONE, THREE, FOUR, SIX AND SEVEN. AND I WOULD LIKE TO APPOINT JEFF DUNCAN FOR PLACE TWO. AND I WOULD LIKE TO APPOINT MCCANN TURNER FOR PLACE FIVE SECOND. YEAH. VERY GOOD. WE HAVE A MOTION FROM AARON AND MR. FOWLER AND A SECOND FROM MR. PIZZUTO. AND ONCE AGAIN THAT MOTION READS MAINTAIN PLACES ONE, THREE, FOUR, SIX AND SEVEN. WITH THE APPOINTMENT OF MR. DUNCAN TO PLACE TWO AND THE APPOINTMENT OF MR. TURNER TO PLACE FIVE. MOTION CARRIES. GOOD JOB. MY MICROPHONE WAS ON ON, I APOLOGIZE. MOTION CARRIES. UNANIMOUS. WE WELCOME MR. DUNCAN AND MR. TURNER TO THE PNC BOARD AND THE REST OF THE RETURNING MEMBERS. DREW, YOU'RE GETTING UP FOR US. YOU'RE GOING [5.D. Consider approval of a Resolution of the Town of Northlake, Texas, establishing the composition, procedures, and Development Project Fund of the Northlake Municipal Development District (the "District") which was created by voter approval of Propositions "A" and "B" of the Special Election held on May 2, 2026 (the "Special Election"); authorizing the Town Secretary to notify the Texas Comptroller of the results of the Special Election and the adoption of a one-half of one percent (0.50%) sales and use tax imposed and dedicated to the District in accordance with the Special Election; identifying the boundaries of the District as approved by the Special Election; providing a severability clause; and providing an effective date] TO EARN YOUR PAYCHECK TODAY. ALL RIGHT. I WOULDN'T WISH THIS ON ANYONE. YEAH. MAYOR AND COUNCIL, IT IS NOW TIME TO ANSWER THE PUBLIC. SET UP YOUR MUNICIPAL DEVELOPMENT DISTRICT, DECIDE ON THE COMPOSITION OF THAT. MAINLY THE NUMBER OF BOARD MEMBERS. AND PER STATE LAW, THEY ARE GOING TO SERVE A STAGGERED TWO YEAR TERMS. THE PLAN IS TO SEND THIS TO A SUBCOMMITTEE, WHICH IS A LATER ITEM. FROM OUR UNDERSTANDING, THE DIRECTORS MUST RESIDE IN DISTRICT BOUNDARIES. A MAJORITY MUST LIVE IN THE TOWN LIMITS. AND THEN AMONG THE BOARD AMONG AMONGST THEMSELVES WILL SELECT THE PRESIDENT, VICE PRESIDENT AND SECRETARY. I WILL SERVE AS THE EXECUTIVE DIRECTOR AND TREASURER. TOWN ATTORNEY WILL SERVE AS LEGAL COUNSEL. IT WILL FOLLOW THE TEXAS LOCAL GOVERNMENT CODE, CHAPTER 377. THEY'LL HAVE A ANNUAL PLAN AND BUDGET THAT'S COMES BEFORE COUNCIL FOR APPROVAL. THAT WILL MANAGE THE FINANCES. SO IT'S A LITTLE BIT DIFFERENT IN THAT IT'S NOT A SEPARATE LEGAL ENTITY. IT IS A SUBSET OF THE TOWN, ALTHOUGH THE EDC AND CDC PREVIOUSLY MORE OR LESS FUNCTIONED THAT WAY. THIS WILL BE MORE FORMALIZED. OF COURSE, THEY'LL HAVE AN INDEPENDENT AUDIT. PART OF OUR AUDIT AND THEN ANY AMENDMENTS TO THEIR BUDGET OR TO THEIR ACTIONS WILL REQUIRE IT WILL GO BACK THROUGH THE COUNCIL AGAIN, HAVE TO GO BACK THROUGH THE BOARD. SO REALLY NOW, JUST SO WE CAN BE PREPARED FOR JUNE 11TH, DECIDING WHAT THE BOARD SHOULD BE MADE OF. AND I'LL I'LL RUN AWAY NOW. WELL, LIKE DREW SAID, WE DO HAVE A ITEM IN THE NEAR FUTURE ITEM F TO TALK ABOUT THE APPOINTMENT OF SUBCOMMITTEE AND WHATNOT. SO THIS ITEM HERE IS THE RESOLUTION TO. ESTABLISH THIS COMPOSITION. SO WE HAD TALKED ABOUT 5 OR 7. I THINK THAT WE KIND OF FINALIZED ON SEVEN. BUT WE NEED TO FORMALIZE THAT. IF THAT IS INDEED THE CASE. AND WHAT ELSE DO WE [00:50:01] ACTUALLY NEED JUST THE COMPOSITION FOR THIS ACTION. YES, SIR. OKAY. SO WITH THAT [5.D. VOTE] I'LL MAKE A MOTION TO CONSIDER A COMPOSITION OF A SEVEN MEMBER BOARD. I'LL SECOND. SECOND FOR MR. PIZZUTO, AND WE WILL TAKE A VOTE ON THAT. MOTION CARRIES UNANIMOUS. WE WILL HAVE A SEVEN MEMBER BOARD ONCE THE SUBCOMMITTEE COMES BACK, MAKES RECOMMENDATIONS, AND WE CHOOSE THOSE MEMBERS. I HAVE A QUESTION. YES. SO AS WE GO THROUGH THESE BOARDS, BECAUSE I DIDN'T SEE IT IN THE IN THE NOTICE, BUT I KNOW FOR COUNCIL POSITIONS, WE HAVE TO HAVE THE MEMBERS HAVE TO BE REGISTERED VOTERS IN ORDER TO BE ON THAT. IS THAT THE SAME FOR THESE BOARDS AS WELL? I DID NOT SEE THAT ON THERE. SO BY STATE LAW THEY MUST RESIDE IN THE DISTRICT BOUNDARIES. YES, THEY. I BELIEVE THEY DO NEED TO BE REGISTERED VOTERS. OKAY. BUT THEY DON'T NEED TO BE THEY DON'T HAVE TO BE REGISTERED VOTERS IN THE TOWN OF NORTHLAKE. THEY CAN THEY CAN BE REGISTERED VOTERS IN THE DISTRICT BECAUSE REMEMBER, IT GETS SOME OF THE ETJ. RIGHT. OKAY. THANK YOU. OKAY, SO WE ANSWERED THAT QUESTION. THAT TAKES CARE OF [5.E. Consider approval of a Resolution of the Town of Northlake, Texas, terminating the Northlake Community Development Corporation and the Northlake Economic Development Corporation (the "Corporations") in accordance with the special election held on May 2, 2026 (the "Special Election"); authorizing the Town Secretary to notify the Texas Comptroller of the results of the Special Election and that the last of the Corporations' obligations have been satisfied; approving a letter and plan of dissolution from the Corporations, and authorizing the Mayor and/or the Town Secretary to file a Certificate of Termination with the Secretary of taste and to execute any documents necessary to terminate the Corporations; providing a severability clause; and providing an effective date] ITEM D. NOW FOR ITEM E, THE APPROVAL RESOLUTION TO TERMINATE THE CDC, EDC IN BASICALLY IN WRITING HERE FOR THE STATE. CORRECT? YES, SIR. VERY QUICKLY I, I AS I'VE LEARNED DISSOLUTION IS DIFFERENT FROM TERMINATION. WE'RE STARTING THE DISSOLUTION. IT WILL TERMINATE SEPTEMBER 30TH. THIS BEGINS THAT PROCESS. IT WILL WE WILL CONTINUE TO COLLECT THE SALES TAX THROUGH SEPTEMBER 30TH. ALL REMAINING ASSETS, FUNDS AND PROPERTY WILL TRANSFER TO THE TOWN. THERE'S NO PROPERTY. IT'S JUST FUNDS. AT THIS POINT. THERE ARE NO KNOWN DEBTS AND OR LIABILITIES, NO OWNED REAL PROPERTY. WE HAD ONE BOARD MEMBER THAT SUGGESTED A OR HAD A QUESTION ABOUT THE LANGUAGE OF THAT LETTER. I HAVE AN UPDATED LETTER FOR YOU THAT WE PASSED OUT BEFORE THE MEETING. THERE'S A LITTLE RED LINE ON IT. IT DIFFERENTIATED BETWEEN BOND OBLIGATIONS AND CONTRACTUAL OBLIGATIONS. I THINK THE LETTER USED THOSE TERMS INTERCHANGEABLY. AND SO WE'VE REFINED THAT. OR THE DEAN HAS REFINED THAT. SO THAT LETTER IS REFLECTS THE COMMENTS FROM THE BOARD. AND THEN WE HAD WE HAD PURPOSELY HAD ALL THE EDC AND CDC CONTRACTS, THE TOWN AS A PART OF THAT. SO WE'LL THE TOWN WILL ACCEPT THOSE. AND THEN DEPENDING ON COUNCIL ACTION, WE'LL THEN SEND THOSE OBLIGATIONS TO CONTRACTUAL OBLIGATIONS TO THE MDD. SO THIS BEGINS THE PROCESS. THE MAYOR, TOWN SECRETARY WILL NOTIFY THE TEXAS COMPTROLLER, SECRETARY OF STATE, START THAT PROCESS, AND THEN WE CAN DO THE ASSET TRANSFER. ANY QUESTIONS? QUESTIONS OR MOTIONS? MOTION TO APPROVE MOTION FOR MR. PIZZUTO. [5.E. VOTE] I'LL SECOND A SECOND FROM MAYOR PRO TEM LAWRENCE. MOTION CARRIES. UNANIMOUS. ALL RIGHT. [5.F. Consider approval of a Resolution of the Town of Northlake, Texas, creating the Town Council Boards and Commissions Subcommittee; and providing an effective date i. Select and appoint Subcommittee Members ii. Identify Staff to Assist Subcommittee] TWO MORE ITEMS TONIGHT HERE ON THE ACTION ITEMS. AND THEN THE NEXT IS TO SELECT AND APPOINT THE SUBCOMMITTEE MEMBERS. I KNOW LAST TIME WE KIND OF TOOK A POLL FROM COUNCILORS WHO WAS INTERESTED, WHO WAS NOT. WE WERE GOING TO APPOINT A BOARD OF THREE. I THINK WE HAD THREE PRIMARILY INTERESTED. I PUT MY NAME IN HAT, BUT I DON'T NEED TO TO SERVE ON THIS. THIS COULD BE A COUNCIL ACTION. SO DOES ANYBODY WANT TO MAKE A MOTION OR HAVE DISCUSSION FIRST? IT'S A REAL, REAL QUICK MAYOR. WE WE WOULD BE GLAD AS STAFF WE'RE NON-VOTING MEMBERS. BUT TO ASSIST THEM TO TO PROVIDE INFORMATION. SO HERE HERE IS AND A LOT OF OTHER CITIES DO THAT. SO DEAN PROVIDED KIND OF. AND SO YOU'VE SEEN ALL THIS, BUT KIND OF SET UP A KIND OF A POLICY AND A STRUCTURE FOR THIS SUBCOMMITTEE. AND IT DOES NEED TO BE IT DOES NEED TO BE A NON QUORUM. SO THREE MEMBERS ONLY. YEAH, WE WILL MAKE STAFF RECOMMENDATIONS AFTER THIS ACTION HERE FOR WHO, WHO SHOULD ATTEND THAT AS WELL. I WOULD LIKE TO MAKE A MOTION FOR A [5.F. VOTE] SUBCOMMITTEE TO BE CREATED, WHICH INCLUDES ME, MERRILL AND MR. FOWLER. ISN'T THAT THE IS [00:55:06] THAT THE THAT WAS THE THREE. THAT WAS THREE. THE VOLUNTEER YES, I, I WILL HAPPILY SECOND THAT MOTION. ALL RIGHT. MOTION CARRIES. UNANIMOUS. AND THE FINAL ITEM TONIGHT IS MIGHT COME TO A LITTLE BIT OF SURPRISE IF PEOPLE HERE. BUT STAFF DID A GOOD JOB OF EXPLAINING THIS TO ME. SO I'LL LOOK FOR STAFF TO EXPLAIN THIS TO COUNCIL. IT WAS IN YOUR PACKETS. DID YOU WANT TO A NEW BUILDING? DID YOU WANT TO OFFICIALLY IDENTIFY? YES. LET ME BACK UP TO ITEM TWO, WHICH I POINTED OUT TWICE TO YOU, AND THEN PROMPTLY SKIPPED, SO I. I DO BELIEVE THAT WE SHOULD HAVE MR. COHEN AND MR. REDDEN AND AND Z, AS WELL AS THEY HAVE ATTENDED THESE MEETINGS, HAVE WATCHED PERFORMANCE OF MEMBERS. WE DON'T ATTEND THOSE MEETINGS VERY OFTEN, IF EVER. RIGHT. SO WE CAN WATCH THEM ONLINE. THE ADVISORY BOARD CAN WATCH US ONLINE, TAKE IN PERFORMANCE, TAKE IN ATTENDANCE, TAKEN. EVERYTHING THAT YOU FEEL IS IMPORTANT FOR THIS NEW BOARD. BUT I'D LIKE I WOULD ADVISE YOU TO BRING IN MR. KORN, NATHAN AND Z INTO THAT FOR RESOURCE TO SERVE. EXACTLY. WE'LL HAVE NO VOTE. WE'RE JUST TO TO PROVIDE YOU INFORMATION. WE COULD SET UP THE INTERVIEWS FOR YOU. Z WILL, OF COURSE, POST FOR APPLICANTS, ALTHOUGH THIS ONE'S A LITTLE UNIQUE, BUT MOVING FORWARD, THIS WILL BE AN ANNUAL THING AND ALL YOUR BOARDS WILL COME BEFORE THIS. SO WE WANT TO MAKE SURE YOU GET ALL THE SUPPORT AND INFORMATION YOU NEED TO MAKE THE BEST DECISION. I HAVE A QUICK QUESTION ON POSTING FOR APPLICANTS. DO WE HAVE TO REPOST FOR APPLICANTS, OR ARE WE CHOOSING FROM THE INDIVIDUALS THAT HAVE ALREADY REQUESTED TO BE PART OF YOU ARE NOT LIMITED BY WHO APPLIES YOU. THOSE ARE JUST SUGGESTIONS. IT'S JUST IN THE PAST, COUNCIL AND MAYOR HAVE ASKED, CAN WE POST SOMETHING TO SEE IF THERE'S INTEREST? YOU CAN. IT'S IT'S ULTIMATELY YOUR CHOICE. SO YOU'RE NOT LIMITED IN ANY WAY. YOU CAN. YOU CAN RECRUIT PEOPLE. YOU CAN PICK PEOPLE OUT OF THE HAT HOWEVER YOU WANT TO DO IT. IF THEY'RE IF THEY'RE A REGISTERED VOTER AND THEY MEET THE CHARTER REQUIREMENTS OR THE LEGAL REQUIREMENTS, AND THE COMMITTEE BRINGS IT TO THE COUNCIL AND IT GETS A MAJORITY, THAT'S THAT'S WHO THE COMMITTEE MEMBERS ARE. I JUST WANT TO CLARIFY THAT WE CAN USE THE YOU CAN YOU CAN USE WE HAVE ON FILE FOR THIS. YOU CAN. AND YOU CAN GO OUTSIDE THAT AS WELL. YES, SIR. I'D LIKE TO DO THE SAME THING. I DON'T EVEN THIS IS JUST CONVERSATION, A WAY FOR. IF NATHAN WANTS TO DELEGATE THE DUTIES, LIKE FOR A MEETING OR FOR PART OF THE PROCESS TO LAURA, TO HAVE THAT BE AN OPTION THAT HE CAN MAKE OR DO. OR WHOEVER HIS. SHE'S AN APPLICANT, ISN'T SHE? NO, I MEANT WELL, WE'LL WE'LL, YEAH, WE'LL BRING IN STAFF. HOWEVER HOWEVER IS NEEDED. YES. YEAH. SO THE IMPORTANT THING IS THAT THE COMMITTEE HAVE RESOURCES TO ANSWER QUESTIONS, TO DO RESEARCH, TO SET UP INTERVIEWS, ETC. I ADVISE YOU GUYS TO HAVE ONE, A MINIMUM ONE OF INTERVIEWS, BUT PROBABLY AT LEAST TWO JUST FOR CALENDARING AND MAKING SURE PEOPLE CAN ATTEND. BUT IT'S, IT'S SUCH A CRITICAL ROLE HERE AND I APPRECIATE YOU GUYS VOLUNTEERING. TAKE TIME BECAUSE IT IS A, IT'S GOING TO BE A HEAVY LIFT TO MAKE SURE WE GET IT RIGHT AND WE'RE GOING TO NEED TO MOVE FAST. YEAH. YEAH. SO KISS YOUR SPOUSES BY AND SAY BYE TO YOUR KIDS. AND, AND YOU'LL BE TIED UP HERE FOR A LITTLE WHILE. DOES EVERYBODY AGREE? I DON'T KNOW IF WE HAVE TO TAKE A MOTION ON THE STAFF PORTION, BUT DOES EVERYBODY AGREE THAT THAT'S. I AGREE, I AGREE WITH THAT. THE MORE HELP THE BETTER. RIGHT. VERY GOOD. DREW. PROVIDE SERVICES TO THE TO THE BOARD AS NECESSARY. SUBCOMMITTEE IS NECESSARY. THANK YOU. NOW I WILL JUMP TO [5.G. Consider adoption of an Ordinance of the Town of Northlake, Texas, amending the Code of Ordinances Chapter 12, Article 12.02, Section 12.02.004 "Billing; delinquency; disconnection of service" to provide a procedure for placing liens on property with delinquent water charges] THE WATER BILLING QUESTION. AND WHO IS GOING TO HANDLE THAT THIS EVENING. WOW. HE JUST LIKE APPEARS OUT OF NOWHERE. I FEEL LIKE YOU ALL SEE ME ENOUGH TONIGHT THAT I DON'T NEED TO COME BACK THE REST OF THE YEAR, SO WE LOVE IT. IT'S ALWAYS SO EXCITING. OH, I'M GLAD THIS ONE IS GOING TO BE JUST AS EXCITING. SO WHAT WE'RE ASKING COUNCIL TO CONSIDER, AS YOU CAN SEE ON THIS ONE, IS AN ORDINANCE RELATED TO UPDATING OUR CODE ORDINANCES SPECIFICALLY RELATED TO WATER AND SEWER FOR BILLING, DELINQUENCY AND DISCONNECTION OF SERVICE. SPECIFICALLY SPECIFIC, SPECIFICALLY GIVING US THE ABILITY TO USE LIENS AS A TOOL. THIS IS NOT AIMED AT RESIDENTS OR COMMERCIAL PROPERTIES. WHAT WE HAVE FOUND IS THAT WHILE WE HAVE ADEQUATE TOOLS FOR ENFORCING COLLECTIONS FOR RESIDENTS, SO WE USE DISCONNECT AS KIND OF OUR FINAL [01:00:02] TOOL. SAME THING FOR COMMERCIAL AND FOR BUILDER ACCOUNTS. WE WILL HOLD THEIR APPLICATIONS FOR NEW SET METERS IF THEY'RE NOT PAYING THEIR BILLS. SO WE WON'T GO SET FOR THE PROPERTIES THAT THEY WANT TO BUILD UNTIL THEY'RE CAUGHT UP. WE HAVE THOSE METHODS, AND WE TEND TO DO OUR BEST TO WORK WITH EVERYBODY IN GOOD FAITH UNTIL WE GET TO THAT POINT WHERE WE SAID, YOU'RE SO FAR BEHIND, WE REALLY GOT TO DO SOMETHING OR DISCONNECT. WHAT WE FOUND IS THAT WITH MULTIFAMILY PROPERTIES, WE DON'T HAVE THOSE TOOLS. WE HAVE AN INTERNAL POLICY OF NOT DISCONNECTING AN ENTIRE APARTMENT BUILDING. AS YOU ALL CAN PROBABLY GUESS, THOSE HAVE MAJOR REPERCUSSIONS WHEN YOU HAVE 24 TO. WE HAVE SOME WITH 120 UNITS ALL OF A SUDDEN NOT HAVING ACCESS TO WATER. SO WE DON'T DISCONNECT MULTIFAMILY PROPERTIES. AND THAT LEAVES US WITH NO KIND OF LAST RESORT TOOL. IF A WE HAVE SEVERAL THAT ARE BEHIND. WE'VE HAD SEVERAL. WE'VE HAD A MULTIFAMILY PROPERTY OR TWO WHERE THE OWNERSHIP HAS NOT PAID THEIR BILLS AND THEN SOLD IT BEFORE WE FOUND OUT. AND WE'VE HAD DIFFICULTIES COLLECTING. SO WHAT WE'RE ASKING COUNCIL IS TO HAVE THE ABILITY TO HAVE THE TOOLS, A LIEN TO USE FOR MULTIFAMILY. AS FAR AS I UNDERSTAND THE ORDINANCE, WE'RE NOT ABLE TO DISCRIMINATE BETWEEN CUSTOMER CLASS. SO TECHNICALLY THIS WOULD BE AVAILABLE TO USE FOR ANYBODY. BUT OUR GOAL IS TO USE THIS WITH MULTIFAMILY. OUR TOOL OF LAST RESORT FOR RESIDENTS IS DISCONNECTION OF SERVICE. THAT USUALLY SOLVES THE ISSUE. AND THEN WE GET OUT THERE ONCE THEY PAY, TURN IT BACK ON AS QUICK AS WE CAN. BUT FOR MULTIFAMILY, WE DO OUR BEST WITH GOOD FAITH EFFORTS, BUT WE'RE JUST LOOKING FOR AN ADDITIONAL OPTION. ONE OF THE THINGS THAT HAPPENS IS LIKE THIS LAST INSTANCE WHERE SOMEBODY SOLD THE PROPERTY WITH DEBT TO BE OWED AND WE CAN'T COLLECT IT. THE REST OF THE WATER SYSTEMS, OUR TAXPAYERS HAVE TO ABSORB THAT. RIGHT? SO THAT'S, THAT'S NOT GOOD POLICY. AND PUTTING A LIEN ON A PROPERTY EFFECTIVELY JUST BLOCKS THE SALE UNTIL IT'S COLLECTED. SO I THINK THAT IN THIS INSTANCE, GREAT. I DON'T FORESEE STAFF PUTTING ANY LIENS ON PEOPLE'S RESIDENCES THOUGH. I MEAN, IT'S A POTENTIAL THAT COULD HAPPEN, RIGHT? IF SOMEBODY WAS SO INCREDIBLY FAR BEHIND AND DISCONNECTS DIDN'T WORK, ETC. BUT WE, WE NEED TO KEEP THAT FUND PAID BY THE CUSTOMERS, AS WE'VE DETERMINED AS OUR COUNCIL POLICY. SO I THINK IT'S A, IT'S A GOOD POLICY. AND RIGHT NOW WE'RE OUT QUITE A BIT OF CASH FROM THE WATER FUND DUE TO ISSUES LIKE THIS IN THE PAST. SO IF WE DON'T HAVE TOOLS TO ENFORCE, WE'RE PUTTING THAT BACK ON THE TAXPAYER. QUESTIONS. COMMENTS. [5.G. VOTE] MOTIONS. MOTION TO APPROVE. I'LL SECOND. ALL RIGHT. MOTION FROM MR. GANZ AND A SECOND BY MAYOR PRO TEM LAWRENCE. MOTION CARRIES. UNANIMOUS. THAT CONCLUDES OUR STANDARD BUSINESS TONIGHT. DO WE HAVE ANYTHING COMING OUT OF EXECUTIVE? I DO NOT BELIEVE SO, SIR. OKAY. SO WE SHOULD HAVE NO ACTIONS COMING OUT OF EXECUTIVE SESSION, WHICH MEANS WHEN WE COME BACK WE SHOULD JUST BE CONVENING, THOUGH THERE'S ALWAYS A POSSIBILITY. SO JUST SO YOU [6. EXECUTIVE SESSION ] KNOW, WE WILL AT 6:33 P.M. ENTER INTO EXECUTIVE SESSION UNDER SECTION 551071551072551087, AND BE BACK SOON. THANK YOU VERY MUCH FOR ATTENDING. IF WE [7. RECONVENE INTO OPEN SESSION ] IS. 7:25 P.M. WITH NO ADDITIONAL ACTION COMING FROM EXECUTIVE SESSION. WE * This transcript was compiled from uncorrected Closed Captioning.