The Ledger

Fate City Council Special Meeting - August 8, 2022

Fate Gazette

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The Fate Gazette — Ledger Entry

City of Fate

Special City Council Meeting

Date: August 8, 2022
Time: 6:00 p.m.
Location: Fate City Hall, 1900 CD Boren Parkway, Fate, Texas

1. 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
  • Heather Buegeler
  • John Brandt, Deputy Mayor Pro Tem
  • Scott Kelley
  • Allen Robbins, Mayor Pro Tem
  • Jim Deland
  • Lance Megyesi

Council Members Absent:

  • None

City Staff Present:

  • Michael Kovacs, City Manager
  • Justin Weiss, Assistant City Manager
  • Jon Thatcher, City Attorney
  • Victoria Raduechel, City Secretary
  • Spencer Foster, Assistant to the City Manager
  • Lyle Lombard, Director of Public Safety
  • Ryan Wells, Director of Planning and Development Services
  • Scott Monaghan, Director of Public Works
  • Steve Gilbert, Director of Community Services and Building Safety
  • Leigh Corson, Director of Human Resources
  • Raju Anthony, Director of Finance
  • Teresa Stevens, Accounting Manager
  • Suzy Lawrence, Community and Economic Development Manager
  • Michael Wright, IT Manager

2. Invocation and Pledge of Allegiance

  • Council Member Jim Deland gave the invocation.
  • The Council led the Pledge of Allegiance to the American and Texas flags.

3. Presentations

A. Water and Wastewater Rate Study Update

Presenter: Matthew Garrett, NewGen Strategies and Solutions

Mr. Garrett provided an overview of the water and wastewater rate study update and answered Council questions. Topics presented included:

  • Objectives
    • Evaluation and forecasting of costs and revenues, including capital and debt service
    • Maintenance of revenue sufficiency
    • Financial targets:
      • 120 days cash on hand
      • 1.1x debt service coverage ratio
  • Key Drivers
    • Rising wholesale costs
    • Capital improvement needs
    • Slowing of historically high growth
  • North Texas Municipal Water District (NTMWD) FY 2023 Rates
    • Customer city water rate projected at $3.44 per 1,000 gallons (13.2% increase from FY 2022 rate of $3.04)
    • Projected 133% increase in Sabine Creek WWTP costs from FY 2022 to FY 2023, primarily for expansion to 7 MGD
  • Additional Topics
    • Estimated annual water and wastewater contract expenses with NTMWD
    • Capital improvement funding outlook of $27.0 million for FY 2023–FY 2027
    • Projected residential growth and five-year forecast with rate increases
    • Residential bill impact scenarios
    • Regional bill comparisons
  • Recommendations
    • $4 wastewater minimum increase recommended for FY 2023
    • Annual review and adjustment of rates based on updated assumptions
    • Monitoring of impact fees, capital reserves, and other capital funds

4. Public Comment

  • No individuals were present wishing to speak.

A. Public Hearing on Proposed Budget

Presenter: Michael Kovacs, City Manager

Mr. Kovacs presented an overview of the proposed budget for the fiscal year beginning October 1, 2022, and ending September 30, 2023. Topics included:

  • Citizen Savings and Cost Estimates
    • Property taxes: $3.84 per month less (final de minimis rate 0.293832; 13% reduction)
    • Senior property taxes: $12 per month less
    • Rental registration: $13 per year more
    • Trash/recycling: $2 per month more
    • Sewer service: $4 per month more
  • New Fate DPS Positions
    • 1 School Resource Officer
    • 4 Public Safety Officers
    • 1 Fire Captain
    • Over-hire concept of +3
  • Capital Improvement Projects
    • Pump Station #3: $11,300,000 (partial) plus $1,500,000
    • Road bond projects: $9,911,000
    • Parks and trails construction: $2,821,000
    • Storm water surge: $700,000
    • Road maintenance surge: $500,000 (plus $1 million regular)
    • MDD third floor finish: $775,000
    • Lift stations work (2): $250,000
    • Public works facility: $175,000
    • 7 MGD RWWTP (NTMWD): 67% of $80 million
    • Payoff of utility fund loan to general fund of $1,800,000 at FY 2022 close via budget amendment
  • Budget Calendar
    • Adoption vote scheduled for August 15, 2022, at 6:00 p.m.

Mayor Billings opened the public hearing at 6:08 p.m.

  • No individuals were present wishing to speak.
    Mayor Billings closed the public hearing at 6:08 p.m.

B. Consideration of Proposed Budget and DPS Hiring Schedule

  • Michael Kovacs, City Manager, and Raju Anthony, Director of Finance, answered Council questions regarding:
    • Pump Station #3
    • Parker Creek Interceptor Line costs
    • Budget public hearing notice versus budget binder

DPS Over-Hire Concept / Hiring Schedule Proposed:

  • School Resource Officer: fill immediately using an existing DPS Public Safety Officer; backfill as soon as possible
  • Fire Captain: hiring moved to January 1, 2023
  • Two Public Safety Officers: hiring moved to October 1, 2022
  • Two Public Safety Officers: hiring moved to March 2023

Action Taken:

  • Council Member Megyesi made a motion to approve the DPS hiring schedule as presented.
  • Council Member Kelley seconded the motion.
  • Vote:
    • Ayes: Mayor Billings, Council Members Buegeler, Brandt, Kelley, Robbins, Deland, and Megyesi
    • Nays: None
  • Motion carried unanimously.

6. Adjournment

  • Council Member Robbins moved to adjourn.
  • Council Member Brandt seconded the motion.
  • Vote:
    • Ayes: Mayor Billings, Council Members Buegeler, Brandt, Kelley, Robbins, Deland, and Megyesi
    • Nays: None
  • Meeting adjourned at 6:34 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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