The Ledger

Fate City Council Special Meeting - August 12, 2024

Fate Gazette

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The Fate Gazette — Ledger

City of Fate

Special City Council Meeting

Date: August 12, 2024
Time: 6:00 p.m. – 7:30 p.m.
Location: Fate City Hall, 1900 CD Boren Parkway, Fate, Texas

Call to Order and Quorum

  • Mayor David Billings called the meeting to order at 6:00 p.m.
  • City Secretary Victoria Raduechel confirmed a quorum.

Council Members Present

  • David Billings, Mayor
  • Mark Harper, Deputy Mayor Pro Tem
  • Codi Chinn
  • Scott Kelley
  • Mark Hatley
  • Lance Megyesi

Council Members Absent

  • Allen Robbins, Mayor Pro Tem

City Staff Present

  • Michael Kovacs, City Manager
  • Steven Downs, Assistant City Manager
  • Cynthia Kirchoff, City Attorney
  • Victoria Raduechel, City Secretary
  • Leigh Corson, Director of Human Resources
  • Lyle Lombard, Director of Public Safety
  • Jordan Pope, DPS Public Safety Officer
  • Ryan Ragan, Captain, Police Operations
  • John Taylor, Captain, Fire Operations
  • Steve Gilbert, Director of Community Services and Building Safety
  • Scott Monaghan, Director of Public Works
  • Ryan Wells, Director of Planning and Development Services
  • Shelbi Stofer, Public Engagement Coordinator
  • Raju Anthony, Director of Finance
  • Teresa Stevens, Accounting Manager
  • Omar Williams, Assistant to the City Manager
  • Justin Weiss, Economic Development Manager
  • Michael Wright, IT Manager
  • Isaiah Tackett, Systems Administrator

Invocation and Pledge of Allegiance

  • Council Member Lance Megyesi gave the invocation.
  • Council led the Pledge of Allegiance to the American and Texas Flags.

Presentations

Water and Wastewater Rate Study Update

  • Matthew Garrett, NewGen Strategies and Solutions, presented an update on the water and wastewater rate study and answered council questions.
  • Presentation topics included:
    • Objectives: evaluation and forecasting of costs and revenues; revenue sufficiency; financial targets (120 days cash on hand; 1.1x debt service coverage ratio)
    • Key drivers: rising wholesale costs, capital improvement needs, slowing growth
    • North Texas Municipal Water District FY 2025 rates and projections
    • Estimated annual water and wastewater contract expenses
    • Capital improvement funding outlook for FY 2025–FY 2029
    • Residential growth and usage data
    • Five-year forecast with rate increases
    • Residential bill impact scenarios
    • Regional bill comparisons
    • Recommendation for annual rate review and monitoring of capital funding sources

Public Comment

  • Randy Long, 2263 Bryant Ln., thanked council members who voted to partially restore the Over 65 residential homestead exemption to $50,000 at a previous meeting.
  • Karen Kiser, 1093 N. Churchill, asked questions regarding Consent Agenda Item 5B (Ordinance No. O-2024-039).
  • No additional speakers.
  • Item 5B was removed from the Consent Agenda at the request of Mayor Billings.
  • Motion: Council Member Mark Harper
  • Second: Council Member Scott Kelley
  • Vote:
    • Ayes: Billings, Chinn, Harper, Kelley, Hatley, Megyesi
    • Nays: None
  • Result: Approved unanimously

Item 5B

Ordinance No. O-2024-039 — Over 65 Homestead Exemption

  • Ordinance to increase the Over 65 residential homestead exemption from $25,000 to $50,000.
  • Motion: Council Member Mark Harper
  • Second: Council Member Mark Hatley
  • Vote:
    • Ayes: Billings, Chinn, Harper, Hatley
    • Nays: Kelley, Megyesi
  • Result: Approved

Action Items

Public Hearing — Proposed FY 2024–2025 Budget

  • Opened and closed by Mayor Billings at 6:26 p.m.
  • No public speakers.

Proposed FY 2024–2025 Budget Discussion

  • Michael Kovacs, City Manager, presented and answered questions.
  • Topics included:
    • Strategic priorities
    • Revenue replacement planning
    • Property tax projections
    • Road fee elimination
    • Garbage rate adjustments
    • General fund revenues and sales tax
    • Road maintenance funding and staffing
    • Public safety staffing
    • FY 2025 capital improvement highlights
  • One full-time Code Enforcement Officer was added to the budget starting January.
  • No action taken.

Use of General Fund Surplus

  • City Manager recommended allocations for a fire truck, road maintenance, and legal contingency.
  • Council discussed use of surplus funds by percentage.
  • Motion by Scott Kelley:
    • 50% to fire vehicle acquisition
    • 25% to road maintenance fund
    • 25% to potential legal fees
  • Second: Mark Harper
  • Vote:
    • Ayes: Billings, Chinn, Harper, Kelley, Hatley, Megyesi
    • Nays: None
  • Result: Approved unanimously

Ordinance No. O-2024-040 — Bond Election for Public Safety

  • Presentations by Lyle Lombard, Director of Public Safety, and Raju Anthony, Director of Finance.
  • Topics included police facilities, fire apparatus, remodeling projects, bond structure, tax impacts, and timelines.
  • Initial motion for a $16 million bond failed for lack of a second.
  • Motion by Scott Kelley to call a bond election not to exceed $20 million.
  • Second: Mark Harper
  • Vote:
    • Ayes: Billings, Chinn, Harper, Kelley, Hatley, Megyesi
    • Nays: None
  • Result: Approved unanimously

Adjournment

  • Motion to adjourn: Council Member Mark Harper
  • Second: Mayor David Billings
  • Vote: Unanimous
  • Meeting adjourned at 7:30 p.m.

Record Note
This Ledger entry records the publicly observable proceedings of the meeting listed above. It does not offer analysis or commentary.

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