Sep 14, 2026 City Council Special Session

[1. CALL TO ORDER]

[00:00:03]

ADDRESSING THE CITY COUNCIL. EACH SPEAKER WILL BE ALLOWED THREE MINUTES TO SPEAK.

EACH SPEAKER IN ATTENDANCE, WHO DESIRES TO SPEAK TO THE CITY COUNCIL ON AN ITEM POSTED ON THE AGENDA, SHALL SPEAK WHEN THAT ITEM IS CALLED FORWARD FOR CONSIDERATION.

AT THIS TIME, I HAVE NO SPEAKER CARDS. IS THERE ANYBODY IN THE AUDIENCE WHO WOULD LIKE TO ADDRESS THE CITY COUNCIL ON AN ITEM NOT POSTED ON TONIGHT'S AGENDA?

[Items 3.A.- 3.J.]

THE BUDGET AND TAX RATE. THIS EVENING, ITEMS 3.A.

THROUGH 3.J. WILL HAVE THE SINGLE PRESENTATION.

I'LL CALL THOSE FORWARD AS WE'RE MAKING THE MOTION FOR THOSE ITEMS. AT THIS TIME, THE STAFF PRESENTER IS KEVIN HENNESSEY, DIRECTOR OF FINANCE.

HENNESSEY. GOOD EVENING, MAYOR AND COUNCIL. AS WE FIND OURSELVES THIS EVENING, WE HEAR THE LAST BULLET NODULE FOR THE BUDGET CALENDAR FOR THE SECOND AND FINAL READING TO ADOPT THE BUDGET AND TAX RELATED ORDINANCES.

AND SO WE RECEIVED THIS PRESENTATION LAST WEEK, AND THERE'S BEEN NO MATERIAL CHANGES OUTSIDE OF MEMORIALIZING THE DECISIONS THAT WERE MADE LAST WEEK WITH THE ONE OFFICER AND LIEUTENANT, AND THEN THE NO NEW REVENUE RATE.

THERE IS ONE ADDITION THIS EVENING. IT'S THE ORDINANCE THAT WE CONSIDER IN THE FINAL READING, AND THAT'S THE REIMBURSEMENT RESOLUTION FOR THE CIP BUDGET THAT WE'LL BE ADOPTING THIS EVENING.

SO THAT ALLOWS US TO BEGIN THOSE PROJECTS PAY FOR OUT OF CASH WE HAVE ON HAND TO BE REIMBURSED WHEN WE DO OUR ANNUAL DEBT ISSUANCE IN THE AUGUST, SEPTEMBER TIME FRAME. SO WITH THAT, I'LL GLADLY DEFER TO COUNCIL ON THE LEVEL OF DETAIL THAT WE'D LIKE TO REVIEW THIS PRESENTATION THIS EVENING.

I CAN DO IT IN ITS ENTIRETY, FOCUS ON SOME SPECIFIC AREAS, OR WE CAN PROCEED TO THE ACTION ITEMS. HOWEVER YOU DESIRE. I BELIEVE LET'S MOVE FORWARD.

OKAY. I THINK WE AGREE. OKAY. YES, SIR. SO I'LL STEP ASIDE.

WE CAN PROCEED WITH THE ACTION.

MAYOR AND COUNCIL, BEFORE YOU IS ITEM 3.A. TO CONSIDER AND TAKE POSSIBLE ACTION ON AN ORDINANCE AMENDING THE CODE OF ORDINANCES BY AMENDING CHAPTER 82, UTILITIES, TO ADD ARTICLE 7, MUNICIPAL DRAINAGE UTILITY SYSTEM DIVISION ONE CREATION AND ADMINISTRATION.

TO ESTABLISH A MUNICIPAL DRAINAGE UTILITY SYSTEM AND PROVIDE FOR DRAINAGE SERVICE, BILLING EXEMPTIONS, DRAINAGE CHARGES AND APPEALS. AND THIS IS BEFORE CITY COUNCIL ON FINAL READING.

IS THERE A MOTION ON 3.A? I MAKE A MOTION TO APPROVE 3.A.

I GOT A MOTION BY PHIL AND A SECOND BY ALEXA.

PLEASE VOTE. PASSES UNANIMOUS. THANK YOU, MAYOR AND COUNCIL.

THAT BRINGS US TO 3.B. CONSIDER AND TAKE POSSIBLE ACTION ON AN ORDINANCE AMENDING THE CODE OF ORDINANCES BY AMENDING ARTICLE SEVEN MUNICIPAL DRAINAGE UTILITY SYSTEM OF CHAPTER 82 UTILITIES TO ADD DIVISION TWO MUNICIPAL DRAINAGE UTILITY SCHEDULE OF DRAINAGE CHARGES, ESTABLISHING A MUNICIPAL DRAINAGE UTILITY SYSTEM FEE AND PROVIDING A SCHEDULE OF DRAINAGE CHARGES.

THIS IS BEFORE CITY COUNCIL ON FINAL READING.

IS THERE A MOTION ON 3.B? I MAKE A MOTION TO APPROVE 3.B.

SECOND. I HAVE A MOTION BY ALEXA, A SECOND BY VICTORIA.

PLEASE VOTE. I HAVE 5 YES AND 2 NO. IT PASSES. THANK YOU, MAYOR AND COUNCIL. THAT BRINGS US TO 3.C.

TO CONSIDER AND TAKE POSSIBLE ACTION ON AN ORDINANCE ADOPTING THE BUDGET FOR FISCAL YEAR 2026-2027, BEGINNING OCTOBER 1ST, 2026 AND TERMINATING SEPTEMBER 30TH, 2027 AND MAKING APPROPRIATIONS FOR EACH FUND, REPEALING CONFLICTING ORDINANCES, PROVIDING A SEVERABILITY CAUSE AND EFFECTIVE DATE, AND FINDING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC.

THIS BUDGET WILL RAISE MORE TOTAL PROPERTY TAXES THAN LAST YEAR'S BUDGET BY AN AMOUNT OF $991,712, WHICH IS A 2.12% INCREASE. AND OF THAT AMOUNT, $543,173 IS TAX REVENUE TO BE RAISED

[00:05:10]

THIS IS BEFORE CITY COUNCIL ON FINAL READING.

DO YOU HAVE A STATEMENT? CAN YOU. AND. YEAH.

THE FIRST VOTE WOULD INVOLVE A MOTION TO APPROVE THE ADOPTION OF THE BUDGET FOR FISCAL YEAR 26-27 IN CONFORMANCE WITH THE MATERIAL THE CITY SECRETARY HAS READ INTO THE RECORD. WE DO THAT TO APPROVE THE BUDGET PURSUANT TO THE REQUIREMENTS OF TEXAS LAW.

THE TEXAS LEGISLATURE A NUMBER OF YEARS AGO GIFTED US WITH AN ADDITIONAL DUTY, WHICH REQUIRES ANY CITY WHO ADOPTS A TAX RATE, ALTHOUGH IT MAY NOT BE AN ACTUAL INCREASE IN THE RATE FROM THE PRIOR YEAR.

BUT IF THE ADOPTED RATE WILL PRODUCE MORE REVENUE THAN THE PRIOR YEAR'S RATE PRODUCED, WE ARE REQUIRED TO, IN AN INDEPENDENT MOTION, VOTE TO RATIFY THE INCREASE IN TAX REVENUE CREATED IN THE 2026-2027 MUNICIPAL BUDGET. THAT IS A STATUTORY REQUIREMENT IMPOSED BY THE TEXAS LOCAL GOVERNMENT CODE IN SECTION 102.007, WHICH NONE OF YOU ARE INTERESTED IN, BUT WHICH IS HOW THE LEGISLATURE HAS MANDATED THAT WE UNDERTAKE THIS RESPONSIBILITY. SO FIRST, WE VOTE ON THE ADOPTION OF THE BUDGET, AND THEN WE NEED A MOTION TO RATIFY THE TAX RATE INCREASE CREATED BY THE FISCAL YEAR 2026-2027 BUDGET AS ADOPTED.

GOT IT. IS THERE A MOTION ON 3.C? MOVE TO APPROVE THE FISCAL YEAR BUDGET FOR 2026-2027 AS PRESENTED. I SECOND. I HAVE A MOTION BY ADAM, A SECOND BY DAN.

PLEASE VOTE. BILL. PASSES UNANIMOUS. IS THERE A MOTION TO RATIFY 3.C? I MOVE THAT THE PROPERTY TAX RATE BE A TAX RATE OF $0.7298 PER $100 VALUATION. AND OF THAT RATE, ZERO.

I'M SORRY.

THE MOTION THAT WE NEED RIGHT NOW IS TO RATIFY THE TAX REVENUE INCREASE CREATED BY THE ADOPTION OF THE 2026-2027 MUNICIPAL BUDGET. MAYOR PRO TEM MCCLENDON, IT IS NOT LISTED ON YOUR AGENDA IF YOU'RE LOOKING FOR THE WORDING ON YOUR AGENDA, SIR.

OKAY. THIS WAS STATED. YEAH. THAT'S WHY THE ATTORNEY HAD TO MAKE THE STATEMENT.

IT IS NOT LISTED ON THERE. SO WE HAVE ACTUALLY ADDED AN ITEM TO THE AGENDA THAT'S NOT ON WHAT'S IN FRONT OF ME HERE.

THANK YOU FOR CLEARING THAT UP. I MOVE TO RATIFY THE TAX INCREASE CREATED BY THE ADOPTION OF THE FISCAL YEAR BUDGET FOR 2026-2027.

DOES THAT WORK? LET'S BE SURE IT'S CLEAR THE TAX REVENUE INCREASE.

MOVE TO RATIFY THE TAX REVENUE INCREASE CREATED BY THE ADOPTION OF THE FISCAL YEAR BUDGET FOR 2026-2027.

SECOND. I HAVE A MOTION BY ADAM, A SECOND BY VICTORIA. PLEASE VOTE.

PASSES UNANIMOUS. THANK YOU, MAYOR AND COUNCIL.

THAT BRINGS US TO THREE D. CONSIDER AND TAKE POSSIBLE ACTION ON AN ORDINANCE LEVYING THE AD VALOREM PROPERTY TAX OF THE CITY OF BURLESON FOR TAX YEAR 2026 ON ALL TAXABLE PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY ON JANUARY 1ST, 2026, AND ADOPTING A TAX RATE OF $0.7298 PER $100 VALUATION OF THE TAX YEAR 2026, PROVIDING FOR REVENUES FOR PAYMENTS OF CURRENT MUNICIPAL MAINTENANCE AND OPERATION EXPENSES AND PAYMENT OF INTEREST AND PRINCIPAL ON OUTSTANDING CITY OF BURLESON DEBT, PROVIDING FOR ENFORCEMENT OF COLLECTIONS, REPEALING CONFLICTING ORDINANCES, PROVIDING A SEVERITY CLAUSE AND AN EFFECTIVE DATE, AND FINDING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC.

THE PROPOSED TAX RATE DOES NOT EXCEED THE NO NEW REVENUE TAX RATE.

THIS IS BEFORE CITY COUNCIL ON FINAL READING.

IS THERE A MOTION ON 3.D? IF I MAY NOW. I MOVE THAT THE PROPERTY TAX RATE BE A TAX RATE OF $0.7298 PER

[00:10:09]

I HAVE A MOTION BY DAN AND A SECOND BY ADAM. PLEASE VOTE.

PASSES UNANIMOUS. THANK YOU, MAYOR AND COUNCIL.

THAT BRINGS US TO E CONSIDER AND TAKE POSSIBLE ACTION OF AN ORDINANCE PROVIDING A FISCAL YEAR 2026-2027 SCHEDULE OF FEES FOR VARIOUS CITY OF BURLESON SERVICES. THIS IS BEFORE CITY COUNCIL ON FINAL READING.

IS THERE A MOTION ON 3.E? MAKE A MOTION TO APPROVE 3.E. I HAVE A MOTION BY PHIL, A SECOND BY LARRY.

PLEASE VOTE. PASSES UNANIMOUS. THAT MOVES US ON TO 3.F. CONSIDER AND TAKE POSSIBLE ACTION OF AN ORDINANCE PROVIDING FISCAL YEAR 2026-2027 RATES FOR WATER AND WASTEWATER SERVICE BEFORE CITY COUNCIL ON FINAL READING.

IS THERE A MOTION ON 3.F? I MAKE A MOTION TO APPROVE 3.F.

I HAVE A MOTION BY VICTORIA, A SECOND BY ALEXA.

PLEASE VOTE. PASSES UNANIMOUS.

THANK YOU, MAYOR AND COUNCIL. THAT BRINGS US TO 3.G.

CONSIDER AND TAKE POSSIBLE ACTION ON AN ORDINANCE PROVIDING FISCAL YEAR 2026-2027 RATES FOR COLLECTION AND DISPOSAL OF RESIDENTIAL AND NONRESIDENTIAL SOLID WASTE, RECYCLABLES AND TRASH.

THIS IS BEFORE CITY COUNCIL ON FINAL READING.

IS THERE A MOTION ON 3.G? I GOT A MOTION BY LARRY, A SECOND BY PHIL, PLEASE VOTE.

I'M SORRY, WHAT WAS THE. I MAKE A MOTION TO APPROVE PROVIDING FISCAL YEAR 26-27 RATES FOR COLLECTION AND DISPOSAL OF RESIDENTIAL AND NONRESIDENTIAL SOLID WASTE.

THANK YOU. I GOT A MOTION BY LARRY AND A SECOND BY PHIL.

PLEASE VOTE. LARRY? PASSES UNANIMOUS. THANK YOU, MAYOR AND COUNCIL.

THAT BRINGS US TO 3.H. CONSIDER AND TAKE POSSIBLE ACTION ON AN ORDINANCE ADOPTING THE FIVE YEAR CAPITAL IMPROVEMENT PLAN FOR FISCAL YEAR 2026 TO 2027, TO 2030 TO 2031. THIS IS BEFORE CITY COUNCIL ON FINAL READING.

IS THERE A MOTION ON 3.H? I MOVE TO APPROVE THE CIP FOR FISCAL YEARS 26 AND 27 THROUGH 2030 AND 2031.

I GOT A MOTION BY ADAM, A SECOND BY LARRY. PLEASE VOTE.

PASSES UNANIMOUS. THANK YOU, MAYOR AND COUNCIL.

THAT BRINGS US TO 3.I. CONSIDER AND TAKE POSSIBLE ACTION ON THE FISCAL YEAR 2026-2027 CITY OF BURLESON STRATEGIC PLAN.

IS THERE A MOTION ON 3.I? I MAKE A MOTION TO APPROVE THE 2026 TO 2027 CITY OF BURLESON STRATEGIC PLAN. I HAVE A MOTION BY VICTORIA, A SECOND BY LARRY.

PLEASE VOTE. PASSES UNANIMOUS. THANK YOU, MAYOR AND COUNCIL. AND THAT BRINGS US TO 3.J. CONSIDER AND TAKE POSSIBLE ACTION ON A RESOLUTION DECLARING INTENTIONS TO REIMBURSE AN AMOUNT NOT TO EXCEED $79,944,910 FOR CERTAIN CAPITAL EXPENDITURES, WITH PROCEEDS FROM DEBT AND PLACING TIME RESTRICTIONS ON THE ISSUANCE OF TAX EXEMPT OBLIGATIONS. IS THERE A MOTION ON 3.J? MOVE TO APPROVE THE REIMBURSEMENT RESOLUTION. I'VE GOT A MOTION BY ADAM AND A SECOND.

BY LARRY. PLEASE VOTE. PASSES UNANIMOUS. THANK YOU, MAYOR AND COUNCIL.

[4.A. Consider and take possible action on an ordinance amending the City operating budget (CSO#5910-09-2025) for Fiscal Year 2025-2026 by increasing anticipated revenues in the amount of $1,034,470 and appropriations in the amount of $3,738,976 in various funds; and finding time is of the essence. (First and Final Reading) (Staff Contact: Kevin Hennessey, Director of Finance)]

[00:15:05]

WE'RE DONE. YOU GOT TO TALK AGAIN? UNFORTUNATELY.

UNFORTUNATELY FOR YOU. YEAH, I'LL MAKE IT BRIEF.

SO DIVORCED FROM WHAT WE JUST DISCUSSED, THERE'S AN AMENDMENT BEING PROPOSED FOR THE CURRENT FISCAL YEAR BUDGET.

SO AS OUR PRACTICE, WE'LL TAKE A LOOK AT THE CITY WIDE IMPACT.

WE'LL DISCUSS THE INDIVIDUAL ITEMS AND LOOK AT HOW THEY IMPACT THE CORRELATING FUND THAT THEY ARE A PART OF.

SO HERE'S THE CITY WIDE TABLE OF WHAT'S BEING PROPOSED THIS EVENING.

AND THEN WE'LL BEGIN LOOKING ITEM BY ITEM WITH THE GENERAL FUND.

SO THERE'S TWO PAYMENTS REMAINING FOR OUR FIRE TRUCK LEASE, WHICH HAS BEEN PAID OUT OF THE GENERAL FUND.

SO THE LIABILITY IS INSIDE OF THE GENERAL FUND, BUT WE HAVE AVAILABLE FUNDING IN THE ERF FUND FOR THE PROPRIETOR.

OR EXCUSE ME. FOR THE GENERAL GOVERNMENT. SO WE'RE GOING TO TRANSFER THAT FUNDING IN FROM THAT ERF FUND TO COVER THE COST OF THE FINAL TWO PAYMENTS FOR THAT LEASE TO COMPLETE OUR OBLIGATION. AND THERE'S ALSO A PLANNED TRANSFER TO A NON BOND CAPITAL PROJECTS FUND TO COMPLETE SOME HR RENOVATIONS THAT OCCURRED EARLIER IN THE YEAR.

SO AS WE SEE THAT REVENUE OFFSET FROM THE TRANSFER IN FROM THE ERF TO COVER THOSE COSTS OF THAT LEASE, WE SEE IT IN TERMS OF THE PRINCIPAL AND INTEREST.

THEN THE HR ITEM. IN OUR LIBRARY GRANTS FUND, WE DISCUSSED THE OTHER NIGHT THAT THEY WERE AWARDED A GRANT FOR THIS UPCOMING FISCAL YEAR, BUT THEY ALSO RECEIVED A GRANT FOR THE SUMMER AS WELL. SO THIS IS TO RECORD THE REVENUE AND EXPENDITURE IN THE APPROPRIATIONS FOR THIS YEAR, $1,500 OFFSETTING EACH OTHER. SO ZERO IMPACT TO THE FUND BALANCE.

MEDICAL TRANSPORT FUND. FOR THOSE YEARS THAT WE HAD THE ARPA FUNDING, WE EARNED INTEREST OVER THAT TIME PERIOD.

AND SO THIS IS A APPROPRIATION OF THE REVENUE RECEIPT.

SO WE'RE GOING TO TRANSFER THAT INTEREST EARNED OVER THE LAST SEVERAL YEARS FROM THE ARPA FUND TO CLOSE THAT FUND OUT INTO THE MEDICAL TRANSPORT FUND TO CONTINUE ITS USE TO SUPPORT OUR PUBLIC SAFETY PERSONNEL COSTS. SO HERE'S THE PROPOSED REVENUE INCREASE FROM THAT TRANSFER IN FROM THE ARPA GRANT FUND. AND HERE'S THE EXPENDITURE SIDE.

SO WE DID HAVE THE PLANNED REIMBURSEMENT THAT WENT INTO THE MEDICAL TRANSPORT FUND THIS YEAR TO WRAP UP THE LAST AVAILABLE FUNDING THAT WE HAD FROM THE ACTUAL GRANT DOLLARS FROM THE $389,000.

AND THEN APPROPRIATING THE TRANSFER OUT OF THAT INTEREST EARNED.

AND THIS IS ALL THE INTEREST EARNED. SO ONCE WE MAKE THIS TRANSFER, THERE'LL BE $0 LEFT IN THAT FUND.

MISCELLANEOUS REVENUE, WHICH IS PRIMARILY OUR DONATION FUNDS.

SO THERE WAS A STAND CONFERENCE THE POLICE HAD THAT WAS FUNDED BY DONATIONS.

SO THIS IS SHOWING THE EXPENDITURE AS WELL AS THE REVENUE THAT CAME IN TO OFFSET THAT EXPENDITURE, AS WELL AS SOME TRAINING FOR THE LEOSC PROGRAM THAT WAS ALSO SUPPORTED BY STATE FUNDING.

SO BOTH OF THOSE EXPENDITURES OFFSET THEMSELVES WITH RECORDED REVENUES AS WELL.

AND THEN WE HAD THIS PLAN TO TRANSFER FROM THE WATER AND SEWER FUND INTO THE EQUIPMENT REPLACEMENT FUND PROPRIETARY TO HELP ESTABLISH A HEALTHY FUND BALANCE FOR EQUIPMENT REPLACEMENT FOR THE FUTURE.

AND THEN THE HIDDEN CREEK GOLF COURSE. WE HAVE A PLAN FUNDING TO PAY FOR THE LEASE FOR THE GOLF CART OBLIGATIONS.

SO FOR THE LAST TWO YEARS WE'RE MAKING THAT, OR WHAT WAS BUDGETED, BUT THE TRANSFER DID NOT OCCUR.

SO WE'RE MAKING THAT TRANSFER FROM THE GOLF FUND TO MAKE THOSE PAYMENTS FOR THOSE TWO YEARS OF THE GOLF LEASE.

EXCUSE ME. AND DUE TO INCREASED ACTIVITY THAT WE'VE HAD AT THE GOLF COURSE, THERE'S BEEN SOME INCREASED EXPENDITURES FOR OPERATING COSTS AS WELL AS SOME COSTS OF GOODS SOLD. BUT THERE ARE OFFSETTING REVENUES FOR THOSE TWO CATEGORIES AS WELL.

[00:20:01]

BARTLETT SOCCER COMPLEX FUND. THIS WAS PART OF THAT NEGOTIATION AGREEMENT.

SO HERE'S $14,000 THAT WE RECEIVED LATER IN THE YEAR FOR US TO DO MAINTENANCE ON THOSE FIELDS.

SO THIS IS AN EXPENDITURE TO DO THOSE MAINTENANCE ACTIVITIES WITH THE OFFSETTING REVENUE FROM THAT AGREEMENT.

EQUIPMENT SERVICES. SOME VARYING FLEET COSTS FOR MECHANICAL SUPPLIES, BUT PRIMARILY THE INCREASE TO FUEL COSTS THIS YEAR.

WE'RE BRINGING A REQUEST TO APPROPRIATE THAT, SO THAT THE FUND HAS ENOUGH TO SUPPLY FUEL FOR THE MONTHS OF AUGUST AND SEPTEMBER.

SO THAT'S THE IMPACT ON THE FUND BALANCE. AND THE FUND BALANCE DOES HAVE THE AVAILABLE FUNDS TO ACCOMMODATE THIS REQUEST.

THEN IT. THE FIRST ITEM IS RELATED TO THE CITY HALL FLOODING THAT WE HAD.

SOME OF THOSE COSTS ASSOCIATED FOR ALL THE RENOVATIONS THAT WERE DONE THAT HAVE AN OFFSETTING REVENUE FROM TML INTERGOVERNMENTAL RISK POOL.

AND THEN WE HAD A PLAN TRANSFER OUT FOR SOME PROJECTS THAT ARE MULTI YEAR PROJECTS.

SO THOSE FUNDING WILL BE TRANSFERRED TO A MULTI-YEAR FUND.

AND WITH THAT, SO OUR FUTURE STEPS AFTER THE AUDIT HAS MADE ITS WAY THROUGH JOURNAL ENTRIES AND REVIEWING ALL OF OUR REVENUES AND HAVING OUR REVENUES AND EXPENDITURES RECORDED. WE'LL BRING BACK ONE FINAL BUDGET AMENDMENT, WHICH WILL TIME THAT WITH OUR ANNUAL ENCUMBRANCE ROLL, WE ROLL OUR POS AND CONTRACT ENCUMBRANCES FROM ONE FISCAL YEAR TO THE OTHER.

SO WE'LL TIME THOSE TOGETHER. WE'RE PLANNING THAT FOR THE DECEMBER COUNCIL MEETING.

SO WITH THAT, WE REQUEST THAT YOU MOVE TO APPROVE AN ORDINANCE REQUESTING THE BUDGET AMENDMENT TO INCREASE REVENUES BY A LITTLE OVER $1 MILLION, AND APPROPRIATIONS IN THE AMOUNT OF A LITTLE OVER $3.7 MILLION TO THESE VARIOUS FUNDS WE DISCUSSED TONIGHT TO ACCOMMODATE OPERATING AND CAPITAL NEEDS FOR THIS FISCAL YEAR. AND I STAND FOR ANY QUESTIONS. ANYBODY? IS THERE A MOTION? ADAM. PLEASE VOTE. PASSES UNANIMOUSLY. THANK YOU, MAYOR AND COUNCIL.

[5.A. Receive a report, hold a discussion, and provide staff direction on the issuance and sale of City of Burleson, Texas, Combination Tax and Limited Surplus Revenue Certificates of Obligation, Series 2026; General Obligation Refunding and Improvement Bonds, Series 2026, and Corporation’s Sales Tax Revenue Bonds, Series 2026. (Staff Contact: Harlan Jefferson, Deputy City Manager)]

5.A. IS TO RECEIVE A REPORT, HOLD A DISCUSSION AND PROVIDE STAFF DIRECTION ON THE ISSUANCE AND SALE OF CITY OF BURLESON TEXAS COMBINATION TAX AND LIMITED SURPLUS REVENUE, CERTIFICATIONS OF OBLIGATIONS SERIES 2026, GENERAL OBLIGATION REFUNDING AND IMPROVEMENT BONDS SERIES 2026 AND CORPORATE SALES TAX REVENUE BONDS SERIES 2026.

SAYS THE STAFF PRESENTED THIS EVENING IS HARLAN JEFFERSON, DEPUTY CITY MANAGER.

THANK YOU, MISS CAMPOS. GOOD EVENING, MAYOR AND MEMBERS OF THE COUNCIL.

ON AUGUST 17TH, THE COUNCIL APPROVED AN ORDINANCE AUTHORIZING THE ACTUAL PERIMETER ORDINANCE AUTHORIZING DEBT TO BE ISSUED THIS YEAR UNDER CERTAIN CONDITIONS. THE DEBT WAS SOLD ON SEPTEMBER 1ST.

OUR BOND COUNSEL, HILLTOP SECURITIES, COORDINATED THAT EFFORT, AND WE HAVE WITH US TONIGHT, MARTY, WHO IS GOING TO MAKE THE PRESENTATION ON THE RESULTS.

GOOD EVENING, MAYOR AND COUNCIL. MARTY HSU WITH HILLTOP SECURITIES.

I KNOW YOU GUYS HAVE SEEN THIS PRESENTATION A COUPLE TIMES, SO I'M GOING TO GO THROUGH SOME OF THE DETAILS A LITTLE BIT MORE BRIEFLY.

ANYTIME WE'RE SIZING YOUR DEBT, WE ARE ALWAYS SIZING STAGNANT FOR YOUR PROJECT FUNDS.

SO YOU MAY SEE THE AMOUNT CHANGE BASED ON INTEREST RATES AS THEY CHANGE OVER TIME.

BUT THIS FIRST SUMMARY OUTLINES THE PROJECT FUNDS FOR WHICH WE'VE SIZED EACH OF THE TRANSACTIONS.

SO JUST AS A REFRESHER, YOUR CERTIFICATES OF OBLIGATION WERE SIZED TO NET THE CITY $34 MILLION IN PROCEEDS.

YOUR GENERAL OBLIGATION BONDS, $17.2 MILLION ROUGHLY, AND YOUR SALES TAX BONDS ABOUT $6 MILLION.

THE GENERAL OBLIGATION DEBT HAD TWO COMPONENTS, BOTH NEW MONEY AND REFUNDING, AND WE'LL GET INTO THAT HERE IN A SECOND.

AS PART OF THE NORMAL BOND ISSUANCE PROCESS, THE CITY DID HAVE TO APPLY FOR AND PURCHASE A BOND RATING.

THIS YEAR, THE CITY ONLY WENT THROUGH THE WRITING PROCESS WITH ONE AGENCY, MOODY'S RATINGS, AND I'M PLEASED TO REPORT THAT THEY DID AFFIRM THE CURRENT CREDIT RATING AT THE AA 2 LEVEL.

THIS IS A BREAKDOWN OF ALL THE DIFFERENT CREDIT LEVELS THAT YOU CAN SEE WHERE YOU ARE.

I THINK IT'S SIGNIFICANT TO NOTE YOU'RE ONLY TWO NOTCHES AWAY FROM A PERFECT SCORE.

[00:25:06]

AND THIS IS IMPORTANT OR SIGNIFICANT BECAUSE IT'S JUST LIKE YOU OR I, OUR OWN PERSONAL CREDIT RATINGS.

SO THE HIGHER YOUR PERSONAL CREDIT RATING, THE LOWER THE COST OF BORROWING.

WHEN YOU GO TO APPLY FOR A CAR, PURCHASE A MORTGAGE, APPLY FOR A CAR.

SAME HOLDS TRUE FOR THE CITY WHEN YOU GO TO ISSUE BONDS.

THE HIGHER YOUR CREDIT RATING, THE LOWER THE COST OF BORROWING OR THE INTEREST RATE THAT YOU RECEIVE.

SO THIS KIND OF JUST SHOWS YOU THERE ARE A BUNCH OF CATEGORIES.

SO YOU'RE UP THERE AND IT SHOULD BE VERY PLEASED.

CONGRATULATIONS. THIS IS A BACKGROUND INFORMATION ON JUST WHERE YOUR RATING HAS ADJUSTED FROM MOODY'S.

OVER TIME, I WILL NOTE THAT WE DON'T SEE A LOT OF MOVEMENT WITH RATINGS.

YOU WERE UPGRADED BACK IN 2023 AND YOU'VE BEEN ABLE TO CONSISTENTLY KEEP THAT, AGAIN, STILL VERY FAVORABLE.

SO AS MR. JEFFERSON MENTIONED, WE DID RELEASE THE BONDS FOR SALE THE MORNING OF SEPTEMBER 1ST.

SO THEY WERE SOLD THROUGH A COMPETITIVE SALE. AND WHAT THAT MEANS IS THE BONDS WERE PUT OUT THERE AND ANY AND ALL UNDERWRITERS WERE INVITED TO SUBMIT A BID FOR THE RIGHT TO PURCHASE AND SELL YOUR BONDS TO THE PUBLIC. THEY WERE SOLD IN CONSECUTIVE TIMES.

93010 AND 1030 AND YOU DID RECEIVE VERY FAVORABLE RESULTS.

SO I THINK THE COS RECEIVED EIGHT DIFFERENT BIDS.

THE GOS RECEIVED SEVEN DIFFERENT BIDS, AND THE SALES TAX RECEIVED FOUR DIFFERENT.

THIS IS WHAT THE FINAL STRUCTURE OF THE CERTIFICATES OF OBLIGATIONS LOOK LIKE.

THERE'S A LOT GOING ON THERE. THAT'S JUST HOW WE.

THERE'S ONLY ONE SINGULAR ISSUE, BUT WE BREAK IT DOWN INTO DIFFERENT PIECES SO WE CAN TRACK IT BY THE ACTUAL SOURCE OF THE PROJECT.

SO YOUR REVENUES THAT ARE BEING UTILIZED TO PAY FOR EACH OF THOSE PROJECTS, WE TRACK THAT.

AND THEN IT ALSO ALLOWS US TO AMORTIZE DIFFERENT PIECES AT DIFFERENT STRUCTURES SO THAT YOU DON'T HAVE TO AMORTIZE, FOR EXAMPLE, EQUIPMENT LONG OVER A 20 YEAR PERIOD.

WE'RE ACTUALLY AMORTIZING THAT OVER A SHORTER PERIOD.

AS I MENTIONED, YOUR GENERAL OBLIGATION BONDS ALSO HAD A REFUNDING COMPONENT.

AS YOU MAY RECALL, WE DID REFINANCE THE SERIES 2012 WATER AND SEWER BONDS.

PRIOR DISCUSSIONS. PART OF THAT REFINANCING THAT OVER TO THE GENERAL OBLIGATION SIDE, COLLAPSED OUT YOUR REVENUE BONDS.

YOU NO LONGER HAVE ANY MORE REVENUE BONDS OUTSTANDING.

AND AS PART OF THAT, YOU WERE ABLE TO COLLAPSE AND RELEASE THE DEBT SERVICE RESERVE FUND EFFECTIVELY ABLE, WHICH MADE YOU ABLE TO PAY OFF THE DEBT AND ACHIEVE SOME SAVINGS BECAUSE THAT MONEY WAS JUST SITTING THERE, COULDN'T BE USED. AGAIN, THIS IS THE BREAKDOWN OF THE SOURCES AND USES OF FUNDS.

SO WE DO TRACK THAT BY REFUNDING COMPONENT AS WELL AS THE PORTION THAT'S BEING SIZED FOR THE NEW MONEY, AS WE CALL IT. AND THEN THEIR SALES TAX REVENUE BONDS.

AGAIN, THIS IS THE SOURCE AND USES. THE PROJECT FUND BEING OUR TARGET OF JUST OVER $6 MILLION.

AS MR. JEFFERSON MENTIONED, AND YOU'VE SEEN BEFORE, YOU DID HAVE TO APPROVE THESE PARAMETERS.

WE LIKE TO THINK OF THE PARAMETERS AS A CHECK BOX OF CONDITIONS THAT HAVE TO OCCUR IN ORDER FOR THE SALE TO BE MADE, SO YOU APPROVE THE PARAMETER RESOLUTION UP FRONT, WHICH SET OUR LIMITATIONS.

AND THAT WAS PRIMARILY TO PROVIDE A NOT TO EXCEED AMOUNT FOR THE PRINCIPAL OR THE SIZE OF THE BONDS AND A NOT TO EXCEED AMOUNT FOR YOUR INTEREST RATE. IT WAS 5% ON THE GOS AND COS AND 6.5% ON THE SALES TAX.

YOUR REFUNDING PORTION ALSO HAD TO PROVIDE SAVINGS OF AT LEAST 0.5%.

AND THEN THE FINAL MATURITY DIDN'T EXCEED MARCH 1ST OF 2046.

SPOILER ALERT. YOU ARE WELL WITHIN ALL OF THESE PARAMETERS.

THIS IS KIND OF WHERE YOU ACTUALLY ENDED UP. SO THE FINAL RESULTS, AND YOU PROBABLY ALSO NOTICED SOME OF THESE, THE AGGREGATE PRINCIPAL AMOUNT FROM THE BREAKDOWN OF THE SOURCES AND USES.

BUT THAT'S THE FINAL PRINCIPAL AMOUNT. YOUR FINAL TRUE INTEREST COST ON YOUR GENERAL OBLIGATION DEBT WAS A 4.33%.

FOR YOUR CERTIFICATES OF OBLIGATION, THE FINAL INTEREST RATE TRUE INTEREST COST IS A 4.38%.

THE ONLY REASON THERE'S A LITTLE BIT OF A DIFFERENCE THERE IS BECAUSE ON THE GENERAL OBLIGATION BONDS, YOU HAD THE REFUNDING COMPONENT IN THERE, WHICH WAS A SHORTER PIECE. SO HENCE THE WEIGHTED MATURITY OF THAT TRANSACTION WAS A LITTLE BIT SHORTER.

BUT OTHERWISE, THOSE SELL PRETTY MUCH RIGHT IN LINE WITH EACH OTHER.

SO THAT'S RIGHT EXACTLY WHERE WE WOULD EXPECT IT.

AND THEN THE FINAL TRUE INTEREST COST FOR THE SALES TAX REVENUE BONDS IS A 5.66%.

THOSE ARE TAXABLE. YOU'RE LOOKING AT THE DIFFERENCE BETWEEN TAXABLE AND TAX EXEMPT RATES.

SO THAT'S THE BIG DIFFERENCE THERE. AND THEN YOUR REFUNDING BONDS DID PRODUCE A FINAL NET PRESENT VALUE SAVINGS OF 1.62%.

[00:30:12]

YOU'VE ACTUALLY ALREADY APPROVED EVERYTHING. THERE'S REALLY NOT AN ACTION ITEM.

THIS IS JUST A REPORT FOR YOU. SCHEDULED CLOSING IS SEPTEMBER 30TH.

AND THAT IS THE DATE THAT THE CITY WOULD ACTUALLY RECEIVE THE FUNDS.

SO I AM HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE.

ANYBODY? THANK YOU, MA'AM. APPRECIATE IT. THANK YOU.

THANK YOU, MAYOR AND COUNCIL. THAT BRINGS US TO SECTION 6.

EXECUTIVE SESSION. I DO NOT BELIEVE WE HAVE A NEED FOR EXECUTIVE SESSION.

CITY ATTORNEY? NO? OKAY. ARE YOU READY? THAT BRINGS US TO SECTION 7.

DO I HAVE A MOTION? I'M SO SORRY. BEFORE WE ADJOURN, I KNOW THIS ISN'T LISTED ON OUR AGENDA TONIGHT, BUT WE TYPICALLY DO HAVE LIKE A FUTURE AGENDA ITEM REQUEST.

AND I HAVE A REQUEST. OKAY. SO I WOULD LIKE TO LOOK AT THE STRUCTURE AND THE MAKEUP OF OUR TIF FUND AND BOUNDARIES. SOME OF US HAVE BEEN DISCUSSING THIS HERE IN THESE MEETINGS AND IN COMMITTEE MEETINGS.

AND I WOULD LIKE FOR US TO VISIT THAT. IT MIGHT BE GOOD TO SEND IT TO INTERGOVERNMENTAL FIRST, BUT JUST TO PUT THAT ON THE RADAR, PLEASE. CAN DO.

WE'RE ALREADY WORKING ON SOMETHING NOW. THANK YOU. ANYBODY ELSE? IS THERE A MOTION TO ADJOURN? I GOT A MOTION BY ADAM. SECOND BY VICTORIA. I'M TALKING REAL FAST.

PLEASE VOTE. VICTORIA. PHIL? WE'RE GOING TO MAKE YOU STAY. PASSES UNANIMOUS.

WE'RE OUT AT 6:05.

* This transcript was compiled from uncorrected Closed Captioning.