K.1. Legislative Priorities Update - Presentation and discussion on the Town's 2025 Legislative Priorities and the results of the 89th Texas State Legislature.

[K.1. Legislative Priorities Update - Presentation and discussion on the Town's 2025 Legislative Priorities and the results of the 89th Texas State Legislature.]

MOST PEOPLE PROBABLY DON'T KNOW THAT WE WE DID GO TO AUSTIN FOR THE LEGISLATIVE SESSIONS.

I WENT WITH ANN MARTIN AND ADAM SCHIESTEL, AND THEN OUR TOWN MANAGER WENT AND JP WENT, JOHN, BRANDI WAS THERE SUPPORTING US. WE WE HAD GREAT SUPPORT ON SOME OF OUR FROM, FROM OUR HOUSE OF REPRESENTATIVES. OUR SENATOR TAN PARKER WAS AMAZING.

BEN WAS HELPFUL DURING THIS WHOLE PROCESS. SO BRANDI'S GOING TO GIVE US AN UPDATE ON EVERYTHING THAT HAPPENED AT THE 89TH LEGISLATIVE SESSION AND WHERE WE GO FORWARD IN TWO YEARS WHEN WE GO BACK. THANK YOU MAYOR.

THAT WAS A PERFECT SEGUE. YOU STOLE A LITTLE BIT OF MY PRESENTATION, BUT I APPRECIATE IT.

SORRY ABOUT THAT. NO, NO, I APPRECIATE IT. I'M TEASING.

I'M HERE TO GIVE YOU AN UPDATE ON THE VERY SUCCESSFUL SESSION THAT WE JUST CONCLUDED JUNE 2ND, SO I MIGHT LOOK A LITTLE LESS HAGGARD THAN THE LAST TIME YOU SAW ME.

I'M CERTAINLY A LITTLE MORE RESTED AFTER THESE LAST COUPLE OF WEEKS.

SO I JUST WANTED TO REHASH A LITTLE BIT FIRST AND TALK ABOUT YOUR LEGISLATIVE PRIORITIES THAT YOU ALL ADOPTED BEFORE THE SESSION BEGAN.

LET'S GO BACK TO THE BEGINNING AND START THERE. SO THERE WERE THREE ITEMS THAT YOU DIRECTED US TO ACTIVELY PURSUE, OPPOSING LEGISLATION THAT WOULD PROHIBIT CITIES FROM REQUIRING A MINIMUM LOT SIZE, OPPOSE THE RIGHT TO BUILD ACCESSORY DWELLING UNITS WITHOUT RESTRICTIONS, AND SUPPORT THE TEXAS TECH HEALTH SCIENCES CENTER FLOWER MOUND CAMPUS FUNDING.

THERE WERE ADDITIONALLY FOUR ITEMS THAT YOU DIRECTED US TO SUPPORT SHOULD LEGISLATION BE FILED, AND THEY'RE HERE ON THE SCREEN; PROPERTY OWNER NOTIFICATION BEFORE UTILITIES CUT TREES, ALLOWING CITIES TO RAISE THE HOMESTEAD EXEMPTION ABOVE 20%, SUPPORTING AN EXEMPTION IN THE M&O RATE CALCULATION FOR CAPITAL PURCHASES AND DATA PRIVACY.

NONE OF THESE ITEMS, UNFORTUNATELY, DID WE SEE LEGISLATION FILED THIS SESSION.

AND SO WE REALLY FOCUSED ON THE ACTIVELY PURSUE ITEMS FIRST.

AND THE LAND USE BILLS OF COURSE, WERE OUR NUMBER ONE PRIORITY.

THERE WERE FOUR THAT WOULD HAVE NEGATIVELY IMPACTED THE TOWN.

AND SO THIS IS REALLY WHERE WE SPENT OUR TIME.

I ALSO WANT TO ECHO THE MAYOR'S COMMENTS. I WANT TO SAY THANK YOU TO COUNCIL MEMBER SCHIESTEL , ANN MARTIN, AND THE MAYOR FOR COMING TO AUSTIN AND SPENDING SO MUCH TIME.

I KNOW THAT IT WAS VERY LAST MINUTE NOTICE AND AT THE DROP OF A HAT.

SO WE CERTAINLY APPRECIATE ALL OF YOUR EFFORTS, IT DID MAKE A DIFFERENCE.

IT CERTAINLY CONTRIBUTED TO OUR SUCCESS THIS SESSION.

I ALSO WANT TO THANK THE TOWN STAFF. THEY WERE AMAZING.

MANY WEEKENDS AND LATE NIGHTS REVIEWING LEGISLATION AND WORKING ON AMENDMENT LANGUAGE.

SO VERY GRATEFUL TO THE ENTIRE TEAM, WHICH CERTAINLY LED TO OUR SUCCESS.

SO ON THESE FOUR LAND USE BILLS. THE FIRST IS THE MINIMUM LOT SIZE BILL.

AND SO THIS WOULD HAVE REQUIRED CITIES TO ACCEPT DEVELOPMENT AT 32 UNITS PER ACRE.

THIS BILL, AS YOU KNOW, WAS BRACKETED WITH THE POPULATION BRACKET.

SO IT ONLY APPLIES TO COMMUNITIES ABOVE 150,000 IN POPULATION.

CERTAINLY, WE OWE A LOT OF GRATITUDE TO SENATOR TAN PARKER, WHO WORKED HEAVILY ON THESE POPULATION BRACKETS.

AND SO PLEASE THANK HIM AS YOU SEE HIM AROUND THE TOWN, BECAUSE WE'RE VERY GRATEFUL THIS BILL DID PASS.

THE SECOND ONE IS THE COMMERCIAL CONVERSION TO MULTIFAMILY, THAT SENATE BILL 840.

THIS BILL ALSO PASSED, BUT WITH THE SAME POPULATION BRACKET, THANKS TO THE HARD WORK OF SENATOR PARKER.

THERE WERE TWO ADDITIONAL LAND USE BILLS THAT WE WORKED HARD ON THE ACCESSORY DWELLING UNIT BILL, WHICH WAS SENATE BILL 673, AND THE MULTIFAMILY ON RELIGIOUS LANDS, WHICH WAS SENATE BILL 854.

BOTH OF THOSE BILLS DID NOT PASS THIS SESSION.

AND THEN THERE WERE A COUPLE OF OTHER LAND USE BILLS THAT DID NOT HAVE A MAJOR IMPACT ON THE TOWN OF FLOWER MOUND, BUT I WANTED TO TOUCH ON THEM BECAUSE THEY DO HAVE SOME IMPACTS THAT I WANT YOU TO BE AWARE OF.

SO SENATE BILL 1883 BY SENATOR BETTENCOURT, THIS BILL DEALS WITH IMPACT FEES.

IT DOES A COUPLE OF THINGS. IT PROHIBITS CITIES FROM INCREASING YOUR IMPACT FEE MORE FREQUENTLY THAN EVERY THREE YEARS.

IT ALSO REQUIRES A TWO THIRDS VOTE OF COUNCIL TO INCREASE THE IMPACT FEES, AND IT REQUIRES AN INDEPENDENT FINANCIAL AUDIT OF ALL THE ASSUMPTIONS PRIOR TO INCREASING IMPACT FEES. THAT BILL DID PASS AND IT TAKES EFFECT SEPTEMBER 1ST.

AND THEN THE SECOND ONE THAT WE'VE TALKED A LOT ABOUT THIS SESSION IS THE REGULATION OF OCCUPANCY OF DWELLING UNITS.

THIS WAS SENATE BILL 1567 BY SENATOR BETTENCOURT.

[00:55:05]

IT ONLY APPLIES TO CITIES THAT HAVE A HIGHER EDUCATION INSTITUTION WITH 20,000 OR MORE STUDENTS.

SO IT DOES NOT APPLY TO THE TOWN OF FLOWER MOUND.

BUT THAT WAS A LAST MINUTE CHANGE TOWARDS THE END OF THE SESSION.

AND SO THAT IS A BILL THAT WE'VE TALKED ABOUT QUITE A BIT THIS SESSION.

AND THEN THE OTHER PRIORITY WAS THE TECH HEALTH SCIENCE CENTER FUNDING , REPRESENTATIVE BUMGARNER WAS SUCCESSFUL IN GETTING A RIDER ADDED TO THE BUDGET ON THE HOUSE FLOOR FOR $15 MILLION TO SUPPORT A FLOWER MOUND CAMPUS.

SENATOR PARKER ALSO WORKED HEAVILY ON THE SENATE SIDE TO GET THIS BILL OR TO GET THIS RIDER, EXCUSE ME, IN THE BUDGET BILL FOR THIS SESSION ON THE SENATE SIDE, UNFORTUNATELY, IT WAS NOT INCLUDED IN THE FINAL VERSION OF THE BUDGET.

SO THIS IS A PROJECT FOR US TO WORK ON THIS INTERIM, AND WE CAN TALK MORE ABOUT THAT IN A MINUTE.

AND THEN THERE WAS A LONG LIST OF OTHER BILLS THAT WE WORKED HARD ON THAT WOULD HAVE NEGATIVELY IMPACTED THE TOWN OF FLOWER MOUND.

NONE OF THESE BILLS PASSED AND I'LL JUST RUN THROUGH THEM.

AS A REMINDER, THERE WERE TWO BILLS THAT WOULD HAVE EXPANDED THE SUPER PREEMPTION BILL FROM LAST SESSION.

BOTH OF THOSE DIED IN THE FINAL DAYS AND WEEKS OF SESSION.

THERE WERE THREE BILLS THAT WOULD HAVE LIMITED YOUR ABILITY TO ISSUE DEBT FOR VARIOUS PURPOSES AND USING VARIOUS TOOLS.

JOHN WAS VERY HEAVILY INVOLVED IN THOSE DISCUSSIONS AND VERY HELPFUL IN UNDERSTANDING THE IMPACTS OF THOSE BILLS.

THERE ALSO WERE TWO BILLS THAT WOULD HAVE REQUIRED YOU TO ACCEPT THIRD PARTY REVIEW AND WITH NO NO ADDITIONAL OVERSIGHT BY TOWN STAFF, WHICH WAS A HUGE CONCERN. BOTH OF THOSE BILLS DIED THIS SESSION AS WELL.

THERE WAS SEVERAL BILLS, A HANDFUL THAT WOULD HAVE PROHIBITED TAXPAYER FUNDED LOBBYING.

THOSE BILLS DID NOT ADVANCE AND DID NOT PASS.

AND THEN THERE WERE ALSO SEVERAL BILLS THAT WOULD HAVE ALLOWED PROPERTIES TO DIS ANNEX FROM THE TOWN IF THEY WEREN'T PROVIDED FULL MUNICIPAL SERVICES, AND THERE WAS JUST SOME DEFINITION ISSUES THERE THAT WE HAD CONCERNS WITH.

WE WORKED ON ALL OF THESE BILLS, EITHER MODIFYING THEM SO THEY WOULDN'T IMPACT THE TOWN OF FLOWER MOUND OR WORKING TO DEFEAT THEM.

BUT IN THE END, NONE OF THEM PASSED. AND SO NOW JUST TALKING A LITTLE BIT ABOUT NEXT STEPS.

THERE WERE OVER 9000 BILLS THAT WERE FILED, AND ONLY 1200 OF THEM ACTUALLY PASSED.

THE GOVERNOR CURRENTLY HAS UNTIL THIS SUNDAY TO VETO BILLS.

SO THE VETO DEADLINE IS JUNE 22ND, THIS SUNDAY.

SO KEEP THAT IN MIND AS WE'RE TALKING ABOUT ALL OF THE BILLS THAT PASSED.

THERE HAVE ONLY BEEN TWO BILLS VETOED BY THE GOVERNOR SO FAR.

AND TYPICALLY THAT HAPPENS ON THE VERY LAST DAY.

SO EXPECT SOME PRESS AND ANNOUNCEMENTS ABOUT THAT.

IF ANY OF OUR BILLS THAT WERE OF INTEREST TO US GET VETOED I WILL CERTAINLY NOTIFY YOU.

SO IF YOU HAVEN'T HEARD FROM ME BY MONDAY, THEN THAT MEANS ALL OF THOSE BILLS WILL BECOME LAW.

AND AS I SAID EARLIER, PLEASE THANK SENATOR PARKER AS YOU SEE HIM AROUND TOWN.

HE REALLY WENT TO BAT FOR US ON A NUMBER OF THE LAND USE BILLS AND WE'RE VERY GRATEFUL FOR HIS HARD WORK.

ALSO, THE ELECTION SEASON WILL BE COMING UP SOON.

AND SO THERE ARE A NUMBER OF SENATORS THAT HAVE WORKED ON SOME OF THE BILLS THAT WE'VE TALKED ABOUT TODAY THAT ARE EITHER RETIRING OR THEY'RE SEEKING OTHER OFFICE.

SO WE'LL SEE A LOT OF MOVEMENT IN THE SENATE, WHICH CAN CERTAINLY IMPACT WHAT BILLS WE SEE NEXT SESSION.

AND THEN WE MAY SEE SOME CHANGES IN OUR DELEGATION AS WELL.

SO THOSE ARE JUST THINGS TO KEEP IN MIND DURING THIS INTERIM.

THE LEGISLATURE WILL ALSO CONDUCT INTERIM HEARINGS.

AND SO THE COMMITTEE CHAIRS, ONCE THOSE INTERIM ASSIGNMENTS HAVE COME OUT, THEY'LL START SCHEDULING INTERIM HEARINGS.

SO THAT'S SOMETHING I'LL BE MONITORING. IF WE HAVE AN OPPORTUNITY TO PARTICIPATE ON SOME OF OUR PRIORITY ISSUES, I WILL BE IN TOUCH AND WILL CERTAINLY MAKE SURE THAT WE DO THAT.

AND THEN WE ALSO WANT TO WORK WITH TEXAS TECH IN DEVELOPING A STRATEGY FOR THAT FLOWER MOUND CAMPUS FUNDING NEXT SESSION AND THE NEXT SESSION STARTS JANUARY OF 2027, WHICH MAY SEEM LIKE A LONG WAY AWAY, BUT IT COMES REALLY FAST.

AND SO WE'VE GOT A LOT OF WORK TO DO THIS INTERIM TO MAKE SURE WE'RE READY FOR THE 2027 SESSION.

SO WITH THAT, I'LL STOP AND TAKE ANY QUESTIONS, MA YOR, COUNCIL.

I JUST WANT TO I JUST WANT TO SAY THANK YOU SO MUCH FOR HOW TIRELESSLY YOU WORKED TO HELP OUR, OUR TOWN TO HELP US WITH OUR OBJECTIVES DURING THIS LEGISLATIVE SESSION.

YOU WERE AMAZING. STAFF WAS AMAZING. THE AMOUNT OF WORK YOU ALL PUT INTO THIS IS, IS INCREDIBLE AND I LOVE TAKING THE TRIP AND LEARNING.

WE ALL LEARNED A LOT ABOUT THE LEGISLATIVE SESSIONS WHILE WE WERE THERE, AND I CAN'T WAIT FOR 2027.

THANK YOU, I APPRECIATE THAT. IT WAS A TEAM EFFORT AND IT WAS A GREAT TEAM.

[01:00:04]

ANYBODY ELSE? NO, I DON'T HAVE ANY QUESTIONS BUT I'LL ECHO YOUR WORDS IN GRATITUDE BECAUSE WE HAD SOME REALLY TENSE MOMENTS AND THERE WAS A LOT OF SCRAMBLING BECAUSE WE JUST DON'T KNOW UNTIL, YOU KNOW. AND SO WE WERE TRYING TO PUT ALL OUR PAPERS TOGETHER AND ALL OUR SPEECHES, AND WE COULD NEVER HAVE DONE IT WITHOUT YOU. SO THANK YOU SO MUCH FOR EVERYTHING.

SO, BRANDI, I WANTED TO GET SOME FEEDBACK FROM YOU.

NOW, WE GOT CAUGHT FLAT FOOTED TWO YEARS AGO.

WE WERE MUCH MORE PREPARED THIS TIME. I THINK WE DID WELL, BUT I THINK WE COULD DO BETTER.

OBVIOUSLY BRINGING YOU ON BOARD WAS THE BEST DECISION WE MADE.

GOING DOWN THERE A LOT WAS THE NEXT MOST IMPORTANT THING.

WHAT WE FOUND WHEN ANN AND I WERE DOWN THERE, ONE OF OUR ON ONE OF OUR TRIPS THAT WE WERE GOING TO, WE DECIDED JUST TO WANDER THE HALLS AND KICK THE DOORS OPEN ON SOME OF THE COMMITTEE MEMBERS, NOT OUR REPRESENTATIVES, BUT JUST OTHER REPRESENTATIVES WHO WERE ON THE COMMITTEE THAT WAS HEARING THE BILL, THINKING THAT, YOU KNOW, WE'D BE LIKE TRAVELING SALESPEOPLE AND WE'D GET A KIND OF SHOWN THE DOOR.

BUT WHAT WE FOUND IS THAT THEY WERE ACTUALLY VERY INTERESTED IN HEARING FROM US.

AND ONE OF THE AIDES AND ONE OF THE OFFICES SAID THAT THEY WEREN'T HEARING FROM ANYONE ELSE AT THE MUNICIPAL LEVEL AT ALL, AND SHE ENDED UP CORRESPONDING WITH ME QUITE A BIT ABOUT SEVERAL BILLS IN THE FOLLOWING WEEKS.

AND SO IT SEEMS LIKE THERE IS MORE OUTREACH WE COULD DO, MAYBE TO GET OUR PERSPECTIVE.

I WAS, YOU KNOW, YOU MENTIONED THE IMPACT IMPACT FEE BILL.

I WENT TO A HEARING WHEN THEY HEARD THAT BILL AND ALL THEY HEARD FROM WERE BUILDERS SAYING THAT IF YOU LOWER IMPACT FEES, YOU'LL MAKE HOUSES MORE AFFORDABLE AND MUNICIPALITIES ARE JUST RIPPING US OFF.

AND WE KNOW THAT IMPACT FEES ARE THE TRUE COST OF DEVELOPMENT.

AND WHEN YOU DISCOUNT THEM, YOU SIMPLY SHIFT THE COST TO THE TAXPAYERS.

AND WHAT YOU'RE DOING IS YOU'RE TAKING THE TAXPAYERS MONEY AND YOU'RE GIVING IT TO THE BUILDERS TO MAKE THEM MORE PROFITABLE.

AND THERE'S A CASE TO BE MADE FOR THAT BUT IT'S NOT TO MAKE HOUSES MORE AFFORDABLE.

SO NO ONE IS REALLY GETTING THE MESSAGE TO THESE COMMITTEES FROM THE MUNICIPAL PERSPECTIVE.

SO IN THE NEXT TWO YEARS BEFORE NOW, THE MAYOR SAID SHE CAN'T WAIT FOR 2027, I CAN.

I'M NOT LOOKING FORWARD TO IT. BUT IN THE MEANTIME, MEDIA OUTREACH TO ELECTED OFFICIALS.

HOW DO WE GET MORE PUBLIC ENGAGEMENT? CAN YOU GIVE US ANY BEST PRACTICES? WHAT SHOULD WE DO WE BE DOING FOR THE NEXT TWO YEARS? ABSOLUTELY. SO WE NEED TO THINK ABOUT AND WE NEED TO REFRESH.

WHAT WERE THE CRITICAL BILLS THAT DIDN'T PASS THAT WE'RE EXPECTING WILL BE FILED AGAIN NEXT SESSION.

LOOK AT THOSE BILL AUTHORS AND THEN SET UP SOME MEETINGS DURING THE INTERIM WITH THE MEMBERS AND THEIR STAFF TO EDUCATE THEM ON OUR POINT OF VIEW.

I THINK FOR CITIES, IT'S A HUGE CHALLENGE, THE LEGISLATIVE SESSION, BECAUSE THERE ARE SO MANY BILLS THAT IMPACT CITIES THAT A LOT OF CITIES HAVE TO PRIORITIZE AND PICK AND CHOOSE WHERE THEY REALLY WEIGH IN.

AND THEY CAN'T WEIGH IN ON EVERYTHING. AND SO I THINK THAT'S SOME OF WHAT YOU'RE HEARING WHEN YOU'RE SURPRISED THAT THERE AREN'T MORE CITIES THAT WERE WEIGHING IN ON SOME OF THOSE BILLS. BUT WE HAVE A LOT OF WORK TO DO OVER THE INTERIM.

THE CHALLENGES, THE STAFF IS ALMOST CHANGING EVERY SESSION, SO IT'S ALMOST LIKE YOU START OVER EVERY SESSION WITH REEDUCATING, THE COMMITTEE MEMBERS CHANGE AS WELL, BUT LEADERSHIP TYPICALLY DOES NOT, THE COMMITTEE LEADERSHIP.

SO THAT'S WHERE WE'LL FOCUS. ALONG THOSE LINES HAVE WE TAKEN SOME OF THE INFORMATION WE'VE COMPILED AND MEMORIALIZED IT SO THAT WE WILL HAVE THAT AS A FOUNDATION TO CRAFT OUR ARGUMENTS OVER THE NEXT TWO YEARS? YES.

YOUR STAFF IS VERY ORGANIZED, AND WE CERTAINLY HAVE ALL OF THOSE FILES READY TO GO FOR 2027.

AND THEN, OF COURSE, I WILL HAVE TO HAVE SOME SORT OF STRATEGY TO GET MORE MUNICIPALITIES TO BE INVOLVED.

I KNOW LEWISVILLE CAME FOR THE RIDE, BUT IT WOULD BE NICE TO SEE THAT MOMENTUM WITH OTHER MUNICIPALITIES.

YES, AND JAMES AND I WORKED VERY HARD AT THAT AND PULLED TOGETHER A COALITION OF CITIES.

BUT IN THE END WE WERE CERTAINLY LEADING THE CHARGE.

BRANDI, WHAT DO YOU THINK WAS THE MOST EFFECTIVE ARGUMENT IN TERMS OF CHANGING THE FINAL OUTCOME? BECAUSE, YOU KNOW, WE WENT IN THERE TALKING ABOUT DOLLARS AND CENTS AND VERY PRAGMATIC RATIONALE AND WHY ADDING ALL THIS DENSITY THAT WASN'T PLANNED WOULD CAUSE A LOT OF PROBLEMS FROM A COST PERSPECTIVE AND IMPACT RESIDENTS.

BUT THERE WERE OTHER LOCAL OFFICIALS WHO WENT IN THERE AND SHOOK THEIR FIST AT THEM AND SAID, YOU GUYS ARE A BUNCH OF JERKS AND YOU'RE NOT REPRESENTING YOUR YOUR VOTERS.

AND WHAT WAS THE IS WHAT KIND OF ARGUMENT IS MOST EFFECTIVE WHEN YOU'RE DEALING WITH THE DIFFERENT OFFICIALS DOWN THERE? AND OBVIOUSLY YOU UNDERSTAND BECAUSE YOU SIT AROUND THIS DAIS AS WELL THE DOLLARS AND CENTS CERTAINLY RESONATES WITH THEM MORE, PRACTICAL ARGUMENTS THEY LISTEN TO. AND ULTIMATELY, IT WAS A NEGOTIATION BETWEEN THE SENATORS THAT LED TO THE POPULATION BRACKETS BEING ADDED.

THANK YOU. I JUST WANT TO EXPRESS MY APPRECIATION FOR ALL THE WORK YOU'VE DONE.

YOU ARE TRULY A SUPERHERO FOR THE TOWN OF FLOWER MOUND, THIS LAST LEGISLATIVE SESSION.

I THINK THIS IS SOMETHING THAT IS VERY, VERY IMPORTANT TO DEFENDING FARM OUT THE VOTERS, ALL THE WORK THAT PREVIOUS ELECTED OFFICIALS HAVE DONE FOR THE TOWN OF FLOWER

[01:05:06]

MOUND. THIS CAN ALL BE UPENDED WITH ONE, ONE LEGISLATIVE PRIORITY.

SO I TRULY APPRECIATE YOU APPRECIATE TAN PARKER FOR THE HEAVY LIFTING HE DID FOR US, BEN BUMGARNER AND MITCH LITTLE.

SO THANK YOU. THANK YOU. JAMES, DO WE MAINTAIN OUR RELATIONSHIP IN 2026, IN THE OFF SEASON, SO TO SPEAK, SO THAT WE'RE MORE PREPARED? HOW DOES THAT WORK? YOU BEAT ME TO IT.

SO THAT'S WHAT I WAS GOING TO TO SHARE IS THAT OUR RELATIONSHIP WITH WITH BRANDI AND THE BIRD ADVOCACY, WE CAN'T PUT IT ON ICE FOR A YEAR. AND SO, YES, WE'LL MAINTAIN THAT RELATIONSHIP.

AND A LOT OF THE KEY WORK IS WHAT HAPPENS IN THAT IN-BETWEEN TIME WHEN WE WERE TALKING WITH BRANDI THIS AFTERNOON IN PREPARATION FOR THIS EVENING, I DID THE MATH WE'RE 18 WE'RE 18 MONTHS AWAY FROM THIS PROCESS, STARTING BACK UP AGAIN.

SO THE LAST THING WE CAN DO IS KIND OF EXCEL AND REST.

WE GOT TO GET READY. AND I THINK WE KNOW FROM THIS PROCESS WE KNOW THOSE BILLS THAT GOT RIGHT UP TO THE EDGE.

WE KNOW THOSE ARE GOING TO BE THE ONES THAT ARE GOING TO HAVE MOMENTUM GOING INTO NEXT SESSION. SO WE'LL CERTAINLY CONTINUE TO WORK ON THAT.

AND WE'LL WORK WITH BRANDI ON REFINING WHAT WE'RE GOING TO BE DOING IN THAT, THAT INTERIM PERIOD. I THINK THAT THE OTHER THING TOO, THAT I'M GOING TO BE DOING WE WE HAVE OUR TEXAS CITY MANAGERS ASSOCIATION CONFERENCE THIS WEEK, AND I'M GOING TO BE TALKING TO MY COUNTERPARTS, ESPECIALLY SIMILAR SIZED CITIES.

I'M GOING TO TALK WITH THOSE CITY MANAGERS AND GO AHEAD AND START HAVING THOSE CONVERSATIONS ABOUT WHAT ARE YOU PRIORITIZING? WHERE CAN WE LINK UP? BECAUSE I HEAR YOUR CONCERN, AND JUST MY OBSERVATION IS THAT SOMETIMES EVERY EVERY MUNICIPALITY IS UNIQUE.

AND THEIR NUMBER ONE ISSUE IS UNIQUE, AND SOMETIMES THEY CAN'T NECESSARILY GO TO FULL JOURNEY WITH FLOWER MOUND BECAUSE THEY'RE TRYING TO TAKE CARE OF SOME OTHER BILL THAT'S MORE IMPORTANT TO THEM. BUT I THINK OVERALL, JUST LEARNING FROM THIS EXPERIENCE IS, IS THAT WE I'M GOING TO GO AHEAD AND START HAVING THOSE CONVERSATIONS WITH SOME OF MY COUNTERPARTS NOW SO WE'RE PREPARED FOR 27.

BUT OVERALL, I JUST WANT TO END MY COMMENTS BY SAYING THANK YOU FOR YOUR LEADERSHIP.

I THINK YOU YOU TOUCHED ON WHAT I WAS GOING TO SAY JUST IS THE FACT THAT WE DID THIS IN-HOUSE IN 23, AND IT WAS A VERY FRUSTRATING PROCESS WHERE WE FELT LIKE WE WERE CHASING AND NOT GETTING ANY MOVEMENT.

THE FACT THAT Y'ALL COMMITTED TO THIS RELATIONSHIP WITH WITH BRANDI AND HER TEAM SHOWS A SIGN OF YOUR LEADERSHIP.

AND YOU SAW THE DIVIDENDS OF THAT RELATIONSHIP PAID, AND NOW WE JUST WANT TO CAPITALIZE THAT AND GO INTO THE 90TH LEGISLATURE, YOU KNOW, FULLY PREPARED AND AND READY FOR WHAT COMES OUR WAY.

AND ALSO, INEVITABLY, WHAT WE HAVE NO ANTICIPATION OF IS JUST GOING TO COME OUT OF LEFT FIELD, BECAUSE THERE WAS A LOT OF THAT DURING THE PROCESS, TOO, WHERE YOU'RE LIKE, WHERE IN THE WORLD DID THIS COME FROM AND YOU'RE TRYING TO CHASE IT DOWN. SO THERE'S JUST A LOT GOING ON. BUT I'M VERY EXCITED ABOUT WHAT THE FUTURE HOLDS AND THE POSITION WE'LL BE IN.

EXCELLENT. THANK YOU. ALL RIGHT. THANK YOU SO MUCH, BRANDI.

GOOD TO SEE YOU ALL. OKAY. WE'RE MOVING RIGHT ALONG.

[K.2. ZPD25-0001 – Flower Mound High School - Public hearing to consider an ordinance amending the zoning (ZPD25-0001 – Flower Mound High School) to amend Planned Development No. 34 with Single Family Detached Medium Density uses to request certain modifications to Section 94-63 (3) "Parking area trees," of the Code of Ordinances requiring that each parking space be located within 100 feet of a tree. The property is generally located west of Old Settlers Road and south of Peters Colony Road. (PZ recommended approval by a vote of 6 to 0 at its June 9, 2025, meeting.)]

WE HAVE ITEM REGULAR ITEM TWO, THE FLOWER MOUND HIGH SCHOOL.

THIS IS A PUBLIC HEARING TO LOOK AT THE ORDINANCE TO AMEND ZONING FOR THE CURRENT ORDINANCE FOR PARKING AREAS WITH TREES. CURRENTLY, IT'S THE ORDINANCE REQUIRES THAT EACH PARKING SPACE BE LOCATED WITHIN 100FT OF A TREE. SO THEY'RE LOOKING AT AMENDING THAT.

THANK YOU, MAYOR AND COUNCIL AS MENTIONED, THIS IS A PROPOSED AMENDMENT TO PD 34 AS THE ZONING IN PLACE FOR FLOWER MOUND HIGH SCHOOL.

HERE'S THE GENERAL LOCATION OF THE PROPERTY. THIS SHOWS THE WHOLE HIGH SCHOOL PROPERTY SITE.

IT'S WEST OF OLD SETTLERS AND SOUTH OF PETER COLONY ROAD.

HERE'S A MORE DETAILED VIEW OF THE AREA THAT WE'RE REALLY GOING TO BE LOOKING AT IS HERE IN THIS NORTHWEST PARKING LOT.

SO THE LAND USE FOR THIS PROPERTY IS INSTITUTIONAL AND THE ZONING IS PLANNED DEVELOPMENT DISTRICT NUMBER 34 WITH SINGLE FAMILY DETACHED MEDIUM DENSITY USES.

SO HERE IS THE OVERALL SITE AND YOU CAN SEE THAT THE SUBJECT AREA THAT WE'RE LOOKING AT AS I MENTIONED IS UP THERE IN THE NORTHWEST CORNER.

THAT'S THE ONLY PART OF THE OVERALL SITE THAT WILL REALLY BE IMPACTED.

HAVE SOME PHOTOS OF THE PROPERTY. HERE WE ARE LOOKING SOUTH.

THIS IS LOOKING SOUTH JUST A LITTLE FURTHER OVER TO THE WEST, SO YOU CAN SEE THERE'S SOME CONSTRUCTION GOING ON RIGHT NOW, BUT THAT DOESN'T HAVE ANYTHING TO DO WITH THE REQUEST BEFORE YOU TONIGHT.

AND HERE WE ARE LOOKING EAST AND THIS IS THE SUBJECT AREA.

SO YOU CAN SEE THESE LANDSCAPE TREES THOSE ARE THE ONES THAT WOULD PRESUMABLY BE AFFECTED BY THIS PROPOSAL AND THAT'S THE BAND TOWER THERE.

[01:10:11]

SO HERE'S A LITTLE MORE CLOSE UP VIEW. THIS IS THE AREA WHERE THE APPLICANT IS PROPOSING TO EITHER RELOCATE OR REPLACE THESE FIVE LANDSCAPE TREES. AND SO WHAT THEY'RE PROPOSING TO MODIFY IS THE STANDARD THAT REQUIRES THAT EVERY PARKING SPOT BE WITHIN 100FT OF A TREE. SO FOR REGULAR RETAIL COMMERCIAL USES, IT'S 50FT FOR OUR SCHOOLS IT'S 100FT.

AND SO THEY'RE REQUESTING TO CHANGE IT JUST FOR THESE IMPACTED SPACES HERE BECAUSE THEY'RE WANTING TO RELOCATE THESE FOUR AND THEN JUST REPLACE THIS ONE HERE WITHIN THEY'RE GOING TO MOVE THEM INTO THE LANDSCAPE BUFFER.

BUT THE PURPOSE OF THIS IS TO ALLOW THE BAND TO PRACTICE WITHOUT KIND OF THESE IMPEDIMENTS IN THE PARKING LOT AND SO THAT'S WHY THEY'RE ASKING.

SO STANDARDS IN PD 34 THAT WOULD BE PROPOSED FOR MODIFICATION WOULD REQUIRE THAT WOULD CHANGE THE REQUIREMENT THAT PARKING SPACES FOR SCHOOLS BE WITHIN 100FT OF A TREE ON SITE, AS I MENTIONED. FOLLOWING STANDARDS WOULD SAY, AS, EXCEPT AS OTHERWISE INDICATED ON EXHIBITS B, C, AND D, OFF STREET PARKING SHALL BE PROVIDED AS OUTLINED IN THE TOWN'S LAND DEVELOPMENT REGULATIONS.

SO THAT'S WHY I SAID IT WAS SPECIFIC TO JUST THAT NORTHWEST CORNER.

THE REST OF THE PARKING LOT WOULD STILL BE REQUIRED TO MEET THE THE NORMAL STANDARD OF ALL PARKING SPACES BEING WITHIN 100FT OF A TREE.

AS WE SAY, PARKING AREAS SHALL COMPLY WITH THESE EXCEPT AS OTHERWISE DEPICTED IN B, C, AND D.

AND SO AGAIN, JUST KIND OF PROVIDING MORE INFORMATION THERE AND THEN TREES BEING REMOVED MUST BE MITIGATED IN OTHER LANDSCAPE LOCATIONS AS SHOWN ON THE CONCEPT LANDSCAPE PLAN.

AND SO HERE IS THE LANDSCAPE PLAN AGAIN SHOWING THOSE TREES.

AND THEN WHERE THEY'RE TREES THAT WILL BE REPLACED WITHIN THE LANDSCAPE BUFFER.

A MORE DETAILED VIEW HERE AND THAT'S THE CAPTION.

I'D BE HAPPY TO ANSWER ANY QUESTIONS. THE APPLICANT IS ALSO HERE WITH THE PRESENTATION.

SO MARCUS HIGH SCHOOL DOES NOT HAVE THE SAME NUMBER OF TREES IN THE PARKING LOT WHERE THEIR BAND PRACTICES, WERE THEY EXEMPT FROM THE 100 FOOT RULE OR? I WOULD HAVE TO RESEARCH THAT I DON'T KNOW IT OFFHAND.

AND I HAVE THE SAME QUESTION AND I WAS LOOKING AT THE AERIALS. I THINK IT'S SMALLER IT'S JUST A SMALLER LOT. SO THEY MARCHED IN A TIGHTER FORMATION. THEY'RE THEY'RE THEY HAVE THE THE LINES ON THERE FOR THE FOOTBALL FIELD, WHICH BOTH OF THEM HAVE AND THEN MARCUS GOES ALL THE WAY UP TO THE BUILDING.

OKAY. SO I THINK THEY'RE JUST WORKING WITHIN A SMALLER SPACE. BUT THERE'S NO TREES THERE. RIGHT. BUT YOU KNOW, IT'S LESS THAN 100FT.

SO THEY DON'T THEY'RE NOT IMPACTED. IT'S A YOU KNOW, IT'S A IF YOU PUT TREES ON EITHER END AND THE FOOTBALL FIELD IS, YOU KNOW, 150FT WIDE, THEN THE IN THE MIDDLE OF THE FIELD, YOU'RE, YOU KNOW, ONE OF THEM'S I DON'T KNOW.

THAT'S PROBABLY A GOOD QUESTION BECAUSE THEY JUST WOULD HAVE PROBABLY DEVELOPED AT A TIME WHEN THAT STANDARD WAS NOT. WELL, RIGHT BECAUSE IT'S OLDER, A LOT OLDER THAN FLOWER MOUND HIGH SCHOOL. SO MAYBE IT WAS PRIOR TO THAT STANDARD BEING PUT IN PLACE.

SO SLIDE FIVE, IF YOU COULD PUT THAT ONE UP LEXIN I THINK THAT ONE GIVES US A NICE VISUAL OF HOW BIG THE PARKING LOT AREA IS COMPARED TO A FOOTBALL FIELD, WHICH IS THE TYPICAL MARCHING DIMENSION. SO I THINK IT'S UNDERSTANDABLE.

T HEY HAVE ACHIEVED AMAZING RESULTS EVEN WITH THE IMPEDIMENT OF THE TREES.

SO IT CAN ONLY IMAGINE HOW GREAT THEY'RE GOING TO DO IF WE DECIDE TO ALLOW THIS, GIVE THEM THEIR FULL AREA THAT THEY NEED.

LET ME PULL UP THE APPLICANT'S PRESENTATION. SURE. GOOD EVENING MAYOR AND COUNCIL MEMBERS. MY NAME IS HANNAH HABER I'M WITH MCADAMS, AND OUR ADDRESS IS 4400 STATE HIGHWAY 121, SUITE 800 IN LEWISVILLE. AND I DON'T WANT TO GO OVER ALL THE SAME INFORMATION THAT LEXIN JUST WENT OVER.

BUT THE MOST IMPORTANT PART HERE I WANT TO EXPRESS IS THAT WE ARE NOT ALTERING THE EXISTING ZONING BY ANY MEANS WITH THIS PD AMENDMENT.

SO I JUST WANTED TO KIND OF STATE THAT WITH THIS.

AND HERE, LIKE LEXIN SAID, WE ARE HERE TO DO A PD AMENDMENT FOR REMOVING THE LANDSCAPE ISLANDS WITHIN THE BAND AREA WHERE THEY'RE PRACTICING. WE'VE JUST THE THE STUDENTS ARE TRIPPING OVER THESE THEY'RE A BIG HAZARD, ESPECIALLY WHEN YOU'VE GOT THE BIGGER INSTRUMENTS.

YOU CAN'T TELL WHERE THESE LANDSCAPE ISLANDS ARE.

AND SO WE ARE JUST PROPOSING WITH THIS PD AMENDMENT TO REMOVE JUST THOSE FIVE WITHIN THE YELLOW AREA.

[01:15:01]

AND I'VE HIGHLIGHTED FOR YOU IN RED WHERE THE LANDSCAPE ISLANDS SPECIFICALLY ARE AND THEN IN BLUE IS WHERE THE BAND TOWER IS.

AND THEN HERE IS I WANT TO SHOW YOU KIND OF WHERE THE TREES ARE BEING RELOCATED.

AND SO WE ARE DOING THE WEISSBACH ELMS, AND TWO OF THEM WILL BE ON THE 25 FOOT LANDSCAPE BUFFER ON THE WEST SIDE, AND THREE OF THEM WILL BE IN THE LANDSCAPE BUFFER ON THE NORTHERN SIDE.

AND THEN WITH THIS AS WELL IT'S NOT TECHNICALLY A PART OF THE PD AMENDMENT, BUT WE DID NOTICE THAT THERE WAS A TREE THAT'S LACKING OR THAT'S NOT THERE, I APOLOGIZE. IN THE MIDDLE ISLANDS, THEY ARE KIND OF OUTLINED IN PURPLE.

AND SO WE ARE JUST REPLACING THAT WITH A TEXAS ASH TREE.

AND THAT'S ALL I HAVE. IF YOU HAVE ANY QUESTIONS, I'M HERE TO ANSWER THEM.

I DO HAVE A QUESTION HANNAH. DO YOU WANT TO GO? YEAH. SO MY QUESTION IS IF WE DO GIVE APPROVAL FOR TONIGHT, WOULD YOU BE ABLE TO COMPLETE THE WORK PRIOR TO THE MARCHING SEASON, WHICH I THINK PRACTICE STARTS IN EARLY AUGUST, RIGHT? YES, THEY ARE ACTUALLY AND I BELIEVE THIS IS THERE'S ACTUALLY SOME CONSTRUCTION GOING ON OUT THERE, I BELIEVE RIGHT NOW I'VE KIND OF SEEN SOME I BELIEVE.

YEAH, YEAH. SO I, I BELIEVE THEY'RE KIND OF WORKING AND WANTING TO WORK ON THAT AND GET THAT DONE PRETTY QUICKLY SO YES.

THANK YOU. YES, MA'AM. I JUST WAS ASKING ABOUT THE RELOCATION.

YOU USED THE WORD RELOCATION, ARE ARE THOSE, YOU'RE ACTUALLY DIGGING THOSE TREES UP AND YOU'RE GOING TO MOVE THEM.

YES. AND I'M GOING TO GO BACK HERE TO KIND OF SHOW Y'ALL.

SO THERE'S SO GOING DOWN THE FIRST ONE AND THEN TWO, THREE, FOUR, FIVE KIND OF IN THAT ORDER.

THE FIRST ONE IN THE FIFTH ONE WE ARE RELOCATING JUST THOSE TWO AND THEN THE THREE IN THE MIDDLE, THOSE WILL BE BRAND NEW LANCE LACE BARK ELMS. SO WE ARE JUST RELOCATING THE TWO OUTSIDE ONES.

I SEE. AND WE ARE TRYING TO SAVE THEM, WE REALLY WANT TO.

SO THAT'S WHY WE'RE JUST RELOCATING THEM. AND I ALSO HAVE SOME INFORMATION I KNOW AT P&Z IT WAS ASKED A QUESTION OF WHAT WAS THE CALIPER. AND IT WAS 6, IT WAS ABOUT 6 TO 10 INCH CALIPER.

AND SO BUT THE HEIGHT IS ONLY ABOUT 20 20FT. SO IT'S PRETTY SMALL FOR LACE BARK ELM.

THEY USUALLY ARE A LOT LARGER. AND SO WE'RE THINKING AND WE'RE HOPING THAT WITH MOVING THEM KIND OF TO A MORE LANDSCAPED AREA AND IT'S BIGGER, THEY'LL THRIVE WAY MORE THAN THEY ARE RIGHT NOW, SO.

YEAH, I'M SURE THEY'RE PROBABLY NOT GETTING PROPER DRAINAGE. YES. YES, SIR.

YEP. OKAY. THANK YOU. THANK YOU SO MUCH. ABSOLUTELY.

THANK YOU ALL SO MUCH. ALL RIGHT, SO THIS IS A PUBLIC HEARING SO I'M GOING TO UNLESS DO YOU ALL HAVE ANY OTHER COMMENTS YOU WANT TO MAKE.

OKAY. SO I'M GOING TO OPEN THIS PUBLIC HEARING.

DO WE HAVE ANY COMMENT CARDS? ANYBODY OUT THERE WANT TO MAKE PUBLIC COMMENT? NOPE. SO I'M GOING TO CLOSE IT. COUNCIL DO YOU WANT TO DISCUSS MORE OR MAKE A MOTION? I'LL MAKE A MOTION UNLESS ANYONE WANTS TO ASK ANY OTHER QUESTIONS.

OKAY, SO I MOVE TO APPROVE REGULAR AGENDA ITEM K2 AS WRITTEN.

SECOND. OKAY. THERESA IF YOU CAN TAKE THE ROLL.

HEY THAT WAS EASY ITEM K 2 PASSES BY UNANIMOUS VOTE.

THANKS FOR STAYING. OKAY. WE'RE GOING TO MOVE ON TO ITEM K 3.

[K.3. Homestead Tax Exemption - Consider approval of an ordinance increasing the residential homestead ad valorem (property) tax exemption to 17.5%.]

THIS IS THIS IS ALL GOOD STUFF. THIS IS THE HOMESTEAD TAX EXEMPTION.

JOHN, THIS IS YOUR TIME TO SHINE.

ALL RIGHT, SO THIS PRESENTATION IS ACTUALLY QUITE SHORT SO JUMP RIGHT IN IT.

AND SO, MAYOR COUNCIL I BRING BEFORE YOU THE OPTION TO INCREASE THE HOMESTEAD EXEMPTION.

SO I BROUGHT BACK THE ANALYSIS WE DID THE LAST FISCAL YEAR WITH THE SAME HOME WHICH WE'RE KIND OF PICKING OUT IS KIND OF AN AVERAGE HOME HOME WITHIN THE TOWN OF FLOWER MOUND. AND SO WE DID THIS BY LOOKING AT SOME OF OUR STAFF MEMBERS AND DIFFERENT PEOPLE LIKE THAT AND THEN PICKING THEIR NEIGHBORS.

AND SO THAT'S HOW WE LOOKED AT IT. BUT THIS ANALYSIS FOLLOWS THEIR PROPERTY ALL THE WAY THROUGH WITH OUR CURRENT TAX RATE ASSUMING OUR TAX RATE STAYS THE SAME, WITH AN INCREASE TO THE HOMESTEAD EXEMPTION OF 2.5%, US MAINTAINING THE OVER 65 EXEMPTION AT $150,000 AND THUS SHOWING THE ESTIMATED SAVINGS WITH HOMESTEAD AND OVER 65. SO MR. WELKER WAS IN HERE EARLIER AND HE WAS, YOU KNOW, PRETTY FRUSTRATED AND I THINK WE ALL ARE.

SO UNDER THIS, THIS WOULD ASSUME THAT IF YOUR HOUSE WAS $253,000 IN 2017, YOU'RE PROBABLY LOOKING AT A

[01:20:06]

$465,000 APPRAISAL TODAY. I THINK WE'RE ALL KIND OF GOING THROUGH THE SAME THING.

AND SO THIS IS WHAT THE ADOPTED HOMESTEAD IS WHAT YOU SEE IN THE HOMESTEAD COLUMN, EXCLUDING 2026, BECAUSE WE HAVEN'T MADE THAT DECISION YET. SO IF YOUR BILL THEN WAS I'M GOING WITH THE HIGHLIGHTED IN BLUE $1,112, THAT'S JUST THE THE FLOWER MOUND PORTION. THEN IN 2025 YOUR BILL WAS $1,478.

SO I THINK WHAT'S IMPORTANT FOR MR. WELKER AND OTHERS IS, YOU KNOW, OBVIOUSLY YOUR TAX BILL IS LARGE AND FLOWER MOUND TAKES UP ABOUT, WHAT, ABOUT 25% OF IT. SO WHAT WE'VE DONE OVER THE LAST SEVERAL YEARS BY INCREASING THE HOMESTEAD EXEMPTION IS KEPT THE ACTUAL OUT OF POCKET FOR OUR PORTION OF IT PRETTY FLAT. NOT, YOU KNOW, ZERO, BUT THERE'S BEEN INFLATION.

SO WHAT WE'RE SEEING HERE, I GUESS WE CAN'T REALLY LOOK AT WHAT WE WOULD DO IF WE ADOPTED, IF WE DIDN'T ADOPT THIS ADJUSTMENT, BUT IT WOULD BE SOMETHING HIGHER THAN $1,486, BASICALLY.

CORRECT. OKAY. YEAH. SO I JUST I WISH MR. WELKER WAS HERE BECAUSE HE SO HE COULD SEE THAT WE'VE REALLY TRIED HARD TO NOT SEE ACTUAL OUT OF POCKET INFLATION.

CERTAINLY WE'RE DOING OUR PART, I THINK, AND I THINK WE SHOULD CONTINUE TO DO SO.

THANK YOU. SO I'LL ALSO ADD SOMETHING SO TODAY THE GOVERNOR SIGNED A BILL TO INCREASE THE HOMESTEAD EXEMPTION SPECIFICALLY FOR SCHOOLS.

AND SO IT'S GOING FROM IT'S PROPOSED TO GO FROM $100,000 TO $140,000.

AND WHEN THE GOVERNOR TOOK OFFICE, I THINK IT WAS $15,000.

AND SO IT HAS INCREASED QUITE A BIT, WHICH HAS LOWERED THE PROPERTY TAX BILL.

I THINK THE PART OF THE EQUATION THAT PEOPLE ARE MOST UPSET ABOUT IS THE ASSESSED VALUE AND THE GROWTH OF THE VALUE.

SO OUR MAIN THING THAT WE CAN CONTROL IS THE RATE , OUR HOMESTEAD EXEMPTION IS ONE OF THE FEW WAYS THAT WE CAN CONTRIBUTE TO SHRINKING THE BASE. AND SO UNTIL THE LEGISLATURE UNLOCKS OUR ABILITY TO DO MORE, THIS IS WHERE NEXT YEAR WE'LL PROBABLY RUN INTO THE WALL OF 20%.

WHY NOT GO TO 20% THIS YEAR? WE CAN, IT'S JUST WE'RE GOING TO RUN OUT OF OPTIONS THE VERY NEXT YEAR, YOU'RE GOING TO BE ABLE TO PROVIDE SOME OF THAT PROPERTY TAX RELIEF DIRECTLY TO ALL HOMESTEAD RESIDENTS.

YEAH. THE OTHER OPTION I'D TALK ABOUT IS, YOU KNOW, THIS GOES INTO YOUR LEGISLATIVE PLAN AND KIND OF THAT LEGISLATIVE RHETORIC THAT WE'RE, YOU KNOW, TRYING TO PLAN OUT FOR THE NEXT COUPLE OF YEARS IS MAKING A PUSH TO INCREASE THIS AMOUNT AND INCREASE THE PERCENTAGE.

AND SO WE CREATE LANGUAGES FOR BILLS THAT BASICALLY SUGGEST THAT WE ARE ALLOWED TO GO TO 30% OR EVEN HIGHER OR SOMETHING LIKE THAT, AND JUST ARGUING THAT CITIES SHOULD HAVE THE ABILITY TO SET THIS AT A HIGHER RATE.

THE COUNTY CAN SET IT AT A DOLLAR VALUE IF THEY WOULD GIVE US A DOLLAR VALUE OPTION, THAT WOULD ALSO BE GOOD TOO.

BUT RIGHT NOW WE'RE LIMITED TO JUST A PERCENTAGE AND THE PERCENTAGE CAPS AT 20%.

JOHN, IS THERE A LIMIT ON THE OVER 65 EXEMPTION? THERE IS NOT AND WE CAN INCREASE IT NEXT YEAR.

THAT'S LIKELY WHAT I'M GOING TO BE BRINGING FORWARD IS LOOKING AT THAT.

THE ONLY THING I'LL EVER SAY ABOUT AN OVER 65 EXEMPTION.

AND IT'S SOMETHING THAT SOME CITIES DON'T LOOK LIKE, DON'T DO.

I THINK IT'S BETTER THAN THE PROPERTY TAX FREEZE IS.

IT DOES SHIFT YOUR BURDEN. SAME THING WITH THE HOMESTEAD EXEMPTION., ALL OF IT. BECAUSE IT DOESN'T CHANGE THE CALCULATION OF REVENUE.

IT JUST SHIFTS THE BURDEN SOMEWHERE ELSE. AND SO IT'S I'M ALWAYS YES. AND ALSO BUSINESSES AND SO WELL, I'VE NEVER REALLY FELT BAD ABOUT THE BUSINESS, ONE IS BECAUSE THEY HAVE MUCH BETTER TOOLS.

SO THEY CAN ARGUE THEIR BASE VALUE A LOT DIFFERENTLY THAN RESIDENTS CAN.

SO HIS FRUSTRATION IS THESE COMPS ARE NOT COMPARABLE, WHEREAS A BUSINESS CAN SAY A HOTEL SIX HERE VERSUS A HOTEL SIX THERE, THESE THINGS SHOULD BE COMPARABLE OR WHAT. AND THEY CAN WALK IN AND GET THAT VALUE SET OF WHICHEVER IS THE LOWEST, WHEREAS RESIDENTS DON'T HAVE. BUT THEY'RE NOT ALSO ELIGIBLE FOR THE HOMESTEAD EXEMPTION.

EVEN IF YOU OWNED A RESIDENTIAL PROPERTY, A SINGLE FAMILY RESIDENCE, BUT YOU RENTED IT OUT AS A LONG TERM RENTAL, YOU CAN'T GET HOMESTEAD ON THAT, SO THEY ARE PAYING MORE.

THOUGH THEY DO HAVE NOW THE CIRCUIT BREAKER. SO IT WAS INSTITUTED THIS LAST, NOT THIS LEGISLATIVE SESSION, BUT THE PRIOR ONE. SO THEY HAVE A 20% CAP GROWTH OVER THREE YEARS, WHICH MY MATH SHOWS, IT'S ACTUALLY BETTER THAN A HOMESTEAD EXEMPTION.

IS IT? YEAH, BECAUSE WE HAVE A 10% HOMESTEAD IS A 10% AND THEIRS IS 20% OVER THREE YEARS, WHICH IS ABOUT 6 AND 6.7.

YEAH. ARE YOU SAYING THAT'S FOR COMMERCIAL NOT NOT OWNERS OF OF HOMES THAT ARE RENTING THEM OUT.

ANY NON HOMESTEADED PROPERTY UNDER $5 MILLION IN VALUE I BELIEVE SO COMMERCIAL EVEN AS WELL.

OKAY. I MEAN THAT'S WHAT ONE OF THE REASONS WHY I'M THINKING 20% IS A BETTER NUMBER.

I MEAN WE'RE JUST KIND OF SHIFTING SOME OF THE BURDEN OVER TO COMMERCIAL, WHICH HAS HISTORICALLY BEEN VERY, VERY GOOD AT DEFENDING THEIR POSITIONS. AND INCREASES HAVE BEEN PRETTY LOW FOR THEM COMPARED TO RESIDENTIAL, ESPECIALLY IN FARMLAND. SURE OR IF COUNCIL WOULD LIKE TO INCREASE IT, THEY CAN INCLUDE THAT IN THEIR MOTION.

[01:25:05]

WE CAN AMEND THE ORDINANCE AS YOU RECOMMEND. WHAT DO OTHER, DO WE DO WE HAVE AN IDEA OF WHERE OTHER MUNICIPALITIES ARE AT RIGHT NOW? YES. SO SOME MUNICIPALITIES HAVE USED THIS YEAR OVER YEAR, SOUTHLAKE FOR A GOOD EXAMPLE.

THEY WOULD USE THIS YEAR OVER YEAR TO LIKE, RATCHET UP.

BUT MANY OF THEM WERE NOT IN A RUSH TO BRING IT TO THAT TOP 20% CAP.

BUT I WAS WITH ANOTHER CITY NORTHLAKE WENT FROM 5% TO 20% IN ONE YEAR HERE.

AND SO THOSE ARE BIG CHANGES BUT YEAH, SOME OF OUR NEIGHBORS HAVE ALREADY GOTTEN TO 20%.

SO IF IT WAS INCREASED TO 20%, WHAT'S THE SIGNIFICANT BURDEN ON THE YOUNGER POPULATION? THE 20%, WOULD IT BE ON YOUNGER POPULATION IT WOULD SHIFT OVER TO ANYONE THAT'S NON HOMESTEADED.

SO THE BURDEN IS REALLY THAT WHEN WE DO THE PROPERTY TAX RATE CALCULATION AND WE ESTIMATE WHAT 3.5% IS, THE BURDEN BASICALLY SHIFTS MORE ONTO THEIR PROPERTY THAN ON RESIDENTS BECAUSE THEIR VALUES ARE DECREASED.

SO IF WE WERE TO GO TO 20% OR 17.5. SO ON THIS MODEL YOU HAVE THE RATE SAME FLAT.

OBVIOUSLY WE DON'T QUITE KNOW YET IF THAT'S THE CASE.

WHAT DO WE THINK WOULD HAPPEN TO THE RATE IN EACH OF THOSE SCENARIOS? IT'S GOING TO INCREASE THE RATE. IT'S GOING TO INCREASE THE RATE.

IT WOULD INCREASE THE LIKELIHOOD LIKE IT. SO IT IF YOU'RE DECREASING YOUR BASE AND YOU'RE ASKING WHAT RATE EQUALS 3.5% MORE, OR WHEN DOING IT, IT'S GOING TO INCREASE YOUR RATE IF YOUR BASE STAYS THE SAME.

AND SO AS WE SHRINK THE BASE IT'S GOING TO INCREASE THE RATE.

THAT'S NOT SAYING THAT THE TAX RATE AS A WHOLE WOULD INCREASE.

BECAUSE THE OTHER PART THAT WE'RE NOT FACTORING, THAT'S KIND OF WHAT I WANTED TO SEE. I WANTED YOU TO LOOK AT THE TEA LEAVES AND SAY, DO YOU THINK THAT THE RATE CAN STILL STAY FLAT OR GO DOWN IF WE GO TO 20%? THEY CAN. OVERALL, RIGHT NOW, WHEN I'M LOOKING AT TOTAL APPRAISED VALUES AND CHANGES IN PROPERTY VALUES, WE'RE ESTIMATING ABOUT AN 8% INCREASE IN EXISTING VALUES.

AND SO YES, THERE'S SOME ABSORPTION THERE THAT CAN GO INTO THAT AND TO ABSORB THIS AND STILL BE ABLE TO REDUCE THE PROPERTY TAX.

AND DOES THAT ALSO CONTEMPLATE NEW NEW. SO NEW PROPERTY VALUES WE'RE WE'RE AT LESS THAN 1% A YEAR IN NEW PROPERTY VALUES AS COMING ONLINE PROPERTY TAXES . AND SO THERE'S NOT A LOT OF NEW BUT THE OTHER PLACE THAT THERE IS SOME ABSORPTION IS THE TIRZ IS TICKING DOWN.

SO OUR PARTICIPATION PERCENTAGE IS AND SO THAT ALLOWS US, US WHEN I'M DOING THE CALCULATION TO DO SOME SHIFTING.

AND SO THAT'S SOMETHING I'M ALSO WHENEVER YOU SEE THE TAX RATE CALCULATION THIS YEAR IT'S GOING TO HAVE A LOT OF IT'S GOING TO HAVE SOME NOTICES SAYING THIS IS THE NUMBER THAT I'M SUPPOSED TO USE AND HERE'S THE NUMBER THAT I'M USING AND HERE'S WHY.

AND SO ONE OF THOSE IS EXPLAINING THAT THAT THERE IS NO WAY IN THE CALCULATION RIGHT NOW TO SAY THAT TIRZ PARTICIPATION WAS THIS PERCENT LAST YEAR, IT'S THIS PERCENT THIS YEAR. SO THERE'S A NUMBER OF DIFFERENT PLACES LIKE THAT THAT I'M I'M MAKING ADJUSTMENTS AND THAT'S WHY I'LL CERTIFY THE TAX RATE THIS YEAR. SO WHAT I'M SEEING WITH MY NEIGHBORS IS THAT THE PROTECTION THEY'RE GETTING FROM THE 10% IS RUNNING OUT, SO EVERYONE'S STARTING TO HIT THEIR APPRAISED VALUE, THEY'RE STARTING TO GET MORE AGITATED AND SCHEDULING DISPUTES.

I'M HEARING FROM MY NEIGHBORS THAT THEY'RE GOING TO FIGHT THEIR TAXES FOR THE FIRST TIME IN A FEW YEARS.

SO I'M HAVING A HARD TIME FINDING A RATIONALE TO GO TO 17.5 IF WE CAN GO TO 20.

IT SEEMS LIKE 20% MIGHT BE A REAL OPTION HERE.

YEAH. THIS IS LAST YEAR WE SAW THE HOMESTEAD CAP DECREASE MORE THAN 50%.

AND THAT IS WHAT YOU'RE TALKING ABOUT IS, YOU KNOW, THE APPRAISED VALUE AND MARKET VALUE OR THE TAXABLE VALUE AND MARKET VALUE CATCHING UP WITH EACH OTHER. NOW WE DID SEE THE CAP GROW AGAIN THIS YEAR.

SO OVERALL ALL PEOPLE'S VALUES DID GROW FASTER THAN THEY WERE ABLE TO CATCH UP.

SO BUT WE ALSO DID SEE A GOOD AMOUNT OF GROWTH IN THE CIRCUIT BREAKER TOO.

SO YEAH, THAT'S SOMETHING NEW THAT I'LL BE BRINGING IN, TAXABLE VALUES.

SO ONE THING THAT I ALWAYS WANT TO MAKE SURE WE ARE THINKING ABOUT IS, SHOULD THE MARKET START A DOWNTURN? AND I MEAN, I HAVE I LOOK AT REAL ESTATE FROM TIME TO TIME AND I HAVE SEEN HOMES REDUCED $20,000, REDUCED $50,000. SO THAT MIGHT BE NORMALIZING A LITTLE BIT AND COMING BACK DOWN.

YES. THAT'S ABSOLUTELY WHAT WE'RE SEEING. WITH THE HOMESTEAD CAP DISAPPEARING IN THOSE TWO YEARS, WE ACTUALLY SAW HOME VALUES NOT THIS YEAR BUT PRIOR YEAR DECREASED 2% ON AVERAGE.

BUT THE MOST WE WOULD BE STUCK, SO TO SPEAK, WOULD BE ONE YEAR CYCLE.

RIGHT. BECAUSE THEN IF WE HAD TO ADJUST READJUST BECAUSE OF BONA FIDE REDUCTIONS IN PROPERTY VALUES, THEN WE COULD WITHIN A YEAR. YES, YES. SO OVERALL, YES, IT AND PROPERTY TAX IS PROBABLY ONE OF THE MORE INELASTIC TAXES THAT WE HAVE.

SO THAT MEANS THAT YES, IT IT'S GOING TO TAKE A HUGE MARKET SHIFT EVEN IN 07 AND 08 ONE OF THE HOUSING BUBBLE POPPED.

WE DID NOT SEE A DECREASE, THE LAST REAL DECREASE WAS EARLY 90S.

VERY GOOD TO KNOW. AND SO EVEN LAST YEAR WITH A 2% DECREASE IN VALUES, WE STILL OVERALL WENT UP IN TAXABLE VALUE.

[01:30:01]

SO EVEN THOUGH WE'RE 80% RESIDENTIAL AND THAT WENT DOWN, THERE WAS STILL ENOUGH GROWTH TO BE ABLE TO COVER THAT.

SO IF WE DID GO TO 20%, THAT WOULD BE A 30% INCREASE IN OUR HOMESTEAD EXEMPTION BECAUSE IT WOULD BE GOING UP 5% FROM 15, WHICH IS 30%. RIGHT? THAT'S A LOT IN ONE YEAR, I THINK.

I ALMOST FEEL LIKE I WANT TO, BUT I FEEL LIKE, WELL, THEN WHAT WOULD HAPPEN FOR NEXT YEAR? I LIKE THE INCREMENTAL APPROACH A LITTLE BIT BETTER, BUT I'M OPEN .

SO YOU'D HAVE TO COME COME BACK WITH THOSE NUMBERS AGAIN.

OR WE CAN YOU CAN MOVE IT FORWARD. IF YOU PUT INTO THE LANGUAGE THAT YOU DRAFTED, A 20% GO IN MOVING THE HOMESTEAD TO 20%, WE CAN MAKE THE ADJUSTMENTS IN THE ORDINANCE. AND HOW CONFIDENT ARE YOU THAT THE RATE WOULD NOT NEED TO INCREASE? VERY CONFIDENT. 90% CONFIDENT? PROBABLY WELL ABOVE THAT.

OKAY. [INAUDIBLE] THE BIGGEST THING THAT I'M TRYING TO ADJUST FOR IS IN OUR TAX RATE CALCULATION IS THE OTHER PIECES THAT THEY'RE CURRENTLY NOT WORKING WITH.

SO IT'S NOT THINGS IN HERE, THE HOMESTEAD EXEMPTION OR THOSE EXEMPTION VALUES THAT THAT REALLY WORRY ME.

IT'S IT'S THE EXCESS DEBT CALCULATION IS WHAT WORRIES ME RIGHT NOW, BUT I'M WORKING ON ADJUSTMENTS ON THAT.

SO WITHOUT NEGATIVELY IMPACTING US. I KNOW OUR ULTIMATE GOAL WAS TO GET IT TO 20% TOO.

YES. SO OKAY, SO THE THE IF WE INCREASE IT TO 20%, IT WOULD SAVE THE TAXPAYERS ABOUT $37.

IS THAT KIND OF ROUGH? SO MORE NOW ASSUMING IT REALLY DEPENDS ON THEIR HOME'S VALUE.

YEAH. ON AVERAGE. YEAH. YEAH, YEAH. I MEAN, THERE AREN'T THAT MANY HOMES THAT ARE AT 465 IN FLOWER MOUND.

IS THAT THE MEDIAN HOME PRICE RIGHT NOW? NO, I DON'T HAVE THE MEDIAN HOME VALUE.

BUT WHAT I DID WAS I FOUND A NEIGHBORHOOD THAT SOME OF OUR CURRENT STAFF LIVES IN, AND I CHOSE ONE OF THEIR NEIGHBORS.

BECAUSE I KNOW, BECAUSE I WAS SCHOOLED BY A SENATOR.

THE DIFFERENCE BETWEEN THE AVERAGE HOME VALUE AND THE MEDIAN.

AND I WANTED TO TALK ABOUT MEDIAN, HE WANTED TO TALK ABOUT AVERAGE, WHICH IS SKEWED BY SOME OF OUR LARGER HOMES.

ABSOLUTELY. YEAH. THAT'S ONE OF THE BIG THINGS.

I HAVE TO GET THE FULL TAX ROLL TO BE ABLE TO GIVE YOU WHAT MEDIAN VALUE LOOKS LIKE COMPARATIVELY, BUT SOME APPRAISAL DISTRICTS OR TAX ASSESSOR COLLECTORS ARE PRETTY GOOD ABOUT ACTUALLY PROVIDING THAT BECAUSE OF THE SKEW.

YES, WE HAVE ACTUALLY A HEAVY RIGHT SKEW BECAUSE ALL THE NEW PROPERTIES THAT YOU'RE SEEING COME ON THE TAX ROLL ARE OVER $1 MILLION IN VALUE, WHICH SKEWS THIS, WHICH PULLS YOUR AVERAGE TO THE RIGHT.

BUT I THINK THIS IS THE THE WHAT WE'RE SEEING HERE IS OKAY.

BECAUSE YOU SEE, AS A HOUSE THAT'S ALMOST DOUBLED IN VALUE AND SINCE 2017, AND I THINK THAT MOST OF US HAVE PROBABLY HAD A SIMILAR EXPERIENCE, WHETHER IT'S A LOWER VALUE OR A HIGHER VALUE.

SO YOU CAN KIND OF EXTRAPOLATE YOUR OWN IMPACT.

THE ONE THING I WAS GOING TO MENTION, ANN, IS IF WE GO TO 20%, IT WILL KEEP THE RATE SLIGHTLY HIGHER, EVEN THOUGH HOMEOWNERS WILL GET MORE, THE MORE BENEFIT, WHICH MIGHT HAVE A LITTLE ADVANTAGE, A LITTLE BENEFIT TO US IF THERE WAS A BIT OF DEFLATION, BECAUSE IT KEEPS THE RATE A BIT HIGHER.

AND WE'LL MAKE SURE THAT THE THAT SOME OF THOSE COMMERCIAL PROPERTIES CONTINUE TO PAY THAT SLIGHTLY HIGHER RATE, WHICH IS BETTER, YOU KNOW, IN SUBSEQUENT YEARS.

SO THERE'S SOME BENEFITS THERE. I THINK WE CAN PROBABLY GET AWAY WITH IT. I AGREE, ESPECIALLY WITH THE CIRCUIT BREAKER STARTING TO TICK.

YEAH, THAT'S THAT AND THERE'S BEEN TALK OF A 5% CAP.

AND I THINK THE PREVIOUS SESSION FOR NON-HOMESTEAD PROPERTIES, IT'S ALMOST LIKE A BETTER THEY'RE TRYING TO GIVE A BETTER DEAL TO NON-HOMESTEAD THAN THEY ARE TO HOMESTEAD, WHICH IS VERY SURPRISING TO ME. BUT IT'S BUSINESS FRIENDLY.

YEAH. WE KNOW HOW MUCH THEY PUSHED THE LEGISLATORS THIS YEAR.

YEAH, BUT WE'RE HOMEOWNER FRIENDLY. SO WE ARE I THINK WE'RE READY TO MAKE A MOTION THEN.

WELL, MAYOR, I APOLOGIZE. JUST GIVEN THE CONVERSATION ABOUT THE 20%, COULD I HAVE JUST 60 SECONDS IN CLOSED SESSION JUST TO GO OVER OUR THOUGHT.

YES. APOLOGIZE. IT'S RIGHT NOW. YOU WANT TO BREAK RIGHT NOW BEFORE THE BEFORE THE MOTION, IF POSSIBLE.

YEAH. FOR SURE. WE CAN GO AHEAD AND SEE. YEAH, WE CAN GO AHEAD AND DO THAT.

SO WE'LL GO AHEAD AND LET'S SEE IT'S 7:34 AT THIS TIME, THE TOWN COUNCIL IS CONVENING INTO CLOSED

[M. CLOSED MEETING (Part 1 of 2)]

SESSION PURSUANT PURSUANT TO TEXAS GOVERNMENT CODE CHAPTER 551, SECTION 071, 072, 074 AND 087.

OKAY. WELCOME BACK FLOWER MOUND. THE TIME IS NOW 7:39 AND WE ARE RECONVENING INTO OPEN SESSION.

[N. RECONVENE (Part 1 of 2)]

WE CAN ENTERTAIN A MOTION AS A RESULT OF THE CLOSED SESSION IF SOMEONE WANTS TO ENTERTAIN A MOTION.

SO I MOTION TO APPROVE A AGENDA ITEM K3 WITH A HOMESTEAD EXEMPTION INCREASE TO 20%.

SECOND. OKAY. THERESA IF YOU'LL TAKE THE ROLL.

OKAY. HOMESTEAD TAX EXEMPTION INCREASES TO 20% NEXT YEAR AND BY UNANIMOUS VOTE.

[01:35:14]

ALL RIGHT. SO, JOHN, YOU'RE STAYING UP FOR THE NEXT ONE.

[K.4. FY 24-25 Budget Amendment #2 - Consider approval of an Ordinance amending The Town's Budget for the Fiscal Year Beginning On October 1, 2024, And Ending On September 30, 2025, as adopted by Ordinance No. 40-24 and amended By Ordinance No. 04-25, and adopted by Resolution No. 14-24 for Fire District And Resolution No. 15-24 and amended by Resolution No. 04-25 for Crime District, by providing for adjustments to the General Fund, Utility Fund, Street Maintenance Sales Tax Fund, 4B Parks Sales Tax Fund, Crime District Sales Tax Fund, Fire District Sales Tax Fund, And Technology Replacement Fund.]

THIS IS THE BUDGET BUDGET AMENDMENT. SO WE CAN KEEP ON GOING.

ALL RIGHT. THANK YOU, MAYOR AND COUNCIL. SO NORMALLY THIS WOULD BE SOMETHING ON THE CONSENT AGENDA, BUT THIS IS A BIG CHANGE TO OR IT'S NOT A BIG CHANGE.

IT'S A CHANGE TO HOW IT'S NORMALLY PRESENTED. I'D MOST LIKELY HAVE MEG PRESENT THIS BEFORE, BUT I WANTED TO COME UP BEFORE YOU BECAUSE THIS IS A LITTLE BIT OF A CHANGE IN POLICY.

SO WE'RE MIDWAY THROUGH THE BUDGET PROCESS, WE'RE ENTERTAINING ITEMS. WE'RE LOOKING AT DIFFERENT WAYS THAT WE CAN, YOU KNOW, HONE THE BUDGET FOR NEXT YEAR. AND ONE OF THE THINGS THAT COMES UP DURING THIS TIME IS WE LOOK AT REVENUES, WE LOOK AT EXPENSES, BUT WE ALSO LOOK AT WHAT PEOPLE ARE REQUESTING. AND SOME OF THE ITEMS THEY REQUEST ARE ONE TIME EXPENDITURES. AND SO THEY'RE JUST ONE TIME ITEMS THAT WE LIKE TO LOOK AT AND TRY TO FIND ONE TIME REVENUES TO DO.

WELL, IN LOOKING AT REVENUES, WE IDENTIFIED A COUPLE THAT ARE TRENDING HIGHER THAN AND TYPICALLY HAVE BEFORE.

AND SO BECAUSE OF THAT, THERE WERE SOME ONE TIME EXPENSES THAT WE THINK THAT WE CAN IDENTIFY.

WHAT THIS WILL DO IS IT IT HONES THE BUDGET FOR NEXT YEAR A LITTLE BIT, IT PUTS LESS ON THE PLATE FOR DECISIONS.

AND AND IT HONES THE FOCUS INTO MORE ONGOING ITEMS AND LESS INTENSIVE CAPITAL ITEMS. SO IT REDUCES THE NOISE AND IT TAKES OUR, YOU KNOW, 100 AND SOMETHING REQUESTS AND NARROWS IT DOWN QUITE A BIT.

AND SO OVERALL, I'M PRESENTING THIS BY DEPARTMENT BECAUSE BY CHARTER OR COUNCIL ACTUALLY HAS THE AUTHORITY TO APPROVE ON A DEPARTMENTAL LEVEL.

AND THAT'S A LITTLE BIT DIFFERENT THAN WHAT MOST CITIES HAVE. SO I'VE KIND OF ORGANIZED THIS BY DEPARTMENT.

AND THESE ARE JUST EXPENDITURE INCREASES THAT WE'RE LOOKING FOR, OR ALL OF THIS TOTALS ABOUT $1.1 MILLION.

AND IT IS ACTUALLY OFFSET BY SALES TAX AND INTEREST INCOME REVENUES.

AND SO A NUMBER OF THESE ITEMS ARE JUST ONE TIME EXPENDITURES.

SO THEY'RE NOT GOING TO BE THINGS THEY'RE NOT INCREASING THEIR BUDGET YEAR OVER YEAR. THESE ARE JUST ONE TIME CASH PURCHASES THAT WILL ALLOW US TO DO A NUMBER OF DIFFERENT THINGS AROUND TOWN THAT WOULD NORMALLY WAIT UNTIL THE NEXT FOLLOWING YEAR TO DO.

OVERALL, I'M GOING TO TALK A LITTLE BIT ABOUT REVENUES AND KIND OF WHAT'S GOING ON.

SO SALES TAX OVERALL IS TRENDING UP. SO LAST YEAR I FORECASTED SALES TAX COMPLETELY FLAT BECAUSE WE'RE KIND OF IN THIS AREA WHERE WE'RE SEEING, YOU KNOW, SOMEWHAT LIKE DEFLATIONARY INDICATORS.

AND SO SALES TAX IS NOT RAPIDLY GROWING BUT THE FIRST COUPLE OF MONTHS OF THE YEAR REALLY SAW SOME HUGE SPIKES IN SALES TAX.

OVERALL, ENOUGH TO PUSH IT TO A THRESHOLD THAT MAKES ME FEEL THAT WE CAN FORECAST IT AT HIGHER GOING FORWARD.

SO ROUGHLY $780,000 ACROSS OUR FIVE SALES TAX FUNDS, AND THAT YOUR GENERAL FUND, YOUR FIRE DEPARTMENT FUND, POLICE, A IS PARKS, 4B AND STREET MAINTENANCE SALES TAX FUNDS AND THIS IS OVERALL A 2% INCREASE.

SO SOME OF THE QUESTIONS I HAD ABOUT THIS IS, YOU KNOW, HOW LIKELY IS THIS.

YOU KNOW, HOW CONFIDENT ARE WE? I FEEL PRETTY CONFIDENT THIS NUMBER.

WHEN LOOKING AT MY CONFIDENCE INTERVALS AND FORECASTING SALES TAX MOVING FORWARD OR I'M ALSO USING VERY CONSERVATIVE NUMBERS.

AND SO I FEEL THAT WE'RE GOING TO HIT THIS. NEXT IS INTEREST INCOME.

HEY, JOHN, BEFORE YOU MOVE ON TO THAT. SO THE SALES TAX IN THE ADOPTED BUDGET SHOWS THAT LAST YEAR'S SALES TAX WAS SLIGHTLY LOWER THAN PROJECTED.

IS THAT CORRECT? THAT IS CORRECT. SO THIS YEAR IT'S SLIGHTLY ABOVE PROJECTION.

OKAY. SO YOU ESTIMATED IT A LITTLE LOW BECAUSE YOU WERE SEEING THAT ACTUAL AND THEN IT ENDS UP WE'RE DOING BETTER THAN WE EXPECTED? YES WE HAD A BIG WE ACTUALLY HAD A BIG MARKET CORRECTION AND ON A COUPLE OF PAYERS AND THAT WAS ACROSS THE STATE.

AND SO THOSE ARE SOME THINGS. AND THEN WE'RE JUST SEEING SOME SPIKES.

SOME OF THIS MAY BE DUE TO PEOPLE TRYING TO GET AHEAD OF TARIFFS.

THERE COULD ALSO BE SOME SUMMER SPENDING SPREES, BUT WE JUST SAW SOME MONTHS WHERE SALES TAX SPIKED AT GREATER THAN 10%, WHICH THROWS OFF INCREASES THE AVERAGE BASICALLY FOR THE WHOLE YEAR.

SO DO WE THINK THAT THAT WILL CONTINUE FOR THE REST OF THE YEAR, OR DO WE EXPECT THAT THINGS WILL CORRECT THEMSELVES AND GET BACK TO WHAT YOUR PROJECTION WAS IN THE SECOND HALF OF THE YEAR? YEAH, AT MINIMUM, I THINK THEY'RE GOING TO CORRECT.

SO MY PROJECTION, WE'RE RUNNING ROUGHLY ABOUT 2% GREATER THAN MY KIND OF WHAT I FORECAST IN THE BUDGET THIS YEAR.

MY HOPE IS THAT WE'D REACH 4%, BUT MY CONSERVATIVE ESTIMATE IS 2.

OKAY, GREAT. AND THEN INTEREST INCOME THE FED HAS SUSTAINED THE FED INTEREST RATES AT ROUGHLY 4%.

AND IT'S MAINTAINED THEIR IT'S HELD. AND BECAUSE OF THAT WE HAVE HIGHER INTEREST INCOME.

AND SO AS WE'VE HAD THAT STRONG FUND BALANCE WE EARN MORE INTEREST.

I ALWAYS FORECAST INTEREST INCOME VERY LOW BECAUSE INTEREST PRIOR TO ABOUT 3 TO 5 YEARS AGO, INTEREST HAD BEEN ROUGHLY BELOW 1% FOR ALMOST 10 YEARS, AND THEN IT SKYROCKETED UPWARDS.

AND SO AS MUCH AS IT CAN GO UP, IT CAN GO DOWN TOO.

SO I'M VERY CONSERVATIVE WHEN I FORECAST INTEREST INCOME.

SO I FEEL VERY CONFIDENT IN THIS NUMBER. WE HAVE MORE THAN ENOUGH.

I'M NOT ASKING TO AMEND THE BUDGET TO THE FULL AMOUNT THAT I THINK SOME OF THESE REVENUES WILL GO, OH, IT'S JUST WHAT I CAN CONFIRM TO DATE AND KNOW THAT WE WE CONSERVATIVELY CAN AFFORD THESE ITEMS.

[01:40:09]

ALL RIGHT, MAYOR COUNCIL, IF YOU HAVE ANY QUESTIONS. ALL RIGHT.

ANY QUESTIONS. NO ADDITIONAL QUESTIONS. NO IT SEEMS LIKE GOOD NEWS.

SO IT'S REVENUES ARE UP. WE'VE GOT SOME PRUDENT EXPENSES WE CAN TAKE CARE OF SO THEY DON'T ROLL OVER TO NEXT YEAR.

SO LET'S DO IT. ALL RIGHT, ALL RIGHT. ANYONE WANT TO MAKE A MOTION? I WILL MOVE APPROVAL OF REGULAR ITEM K4 AS PRESENTED.

SECOND. OKAY, WE CAN TAKE THE ROLL.

OKAY. ITEM K4 PASSES BY UNANIMOUS VOTE. THANK YOU JOHN.

OKAY. WE'RE GOING TO MOVE ON TO BOARDS AND COMMISSIONS DENCO 911 BOARD, BOARD OF MANAGERS IS UP FOR

[L.1. Denco 9-1-1 Board of Managers - Consider approval of a resolution casting the vote of the Town of Flower Mound, Texas, for the election of the Denco Area 9- 1-1 District Board of Managers.]

THERE'S LIKE, TWO CANDIDATES RUNNING FOR THIS POSITION.

I KNOW TJ GILMORE FROM THE MAYOR OF LEWISVILLE HIGHLY RECOMMENDED STEVE SOUTHWELL IN AN EMAIL HE SENT TO ME AND WANTED THAT CONVEYED TO YOU ALL, BUT AND YOU ALL HAD THE INFORMATION ON BOTH THE CANDIDATES. SO HE'S WORKED, TJ HAS WORKED WITH STEVE FOR A VERY LONG TIME, BUT HAD NOTHING BUT GOOD, GREAT THINGS TO SAY ABOUT HIM. SO I'VE ATTENDED SOME OF THOSE BOARD MEETINGS IN THE PAST, AND I DO BELIEVE THAT STEVE'S BACKGROUND, JUST LOOKING AT HIS RESUME, WHICH WAS, WELL, HIS LETTER, IT WAS MORE LIKE A LETTER FORMAT, BUT I THOUGHT IT WAS MUCH MORE DETAILED THAN OUR OTHER CHOICE, AND SO I'M INCLINED TO GO WITH THAT ALONG WITH THE MAYOR'S RECOMMENDATION, I THOUGHT THEY BOTH LOOKED LIKE GREAT CANDIDATES. I WAS IMPRESSED WITH JOHN SMITH'S BACKGROUND AND BEING A MAYOR AND A TOWN MANAGER.

AND BUT IF TJ RECOMMENDS STEVE SOUTHWELL, THEN THAT IS GOOD ENOUGH FOR ME AND I'M ON BOARD.

ALL RIGHT. ANYONE WANT TO MAKE A MOTION THEN? YES, SHOULD SO DO I JUST SAY, HOW DO YOU KNOW NOMINATE I MOVE TO APPROVE THE NOMINATION OF STEVE SOUTHWELL.

IT'S AT THE BOTTOM IN THE STAFF REPORT. MOVE TO CAST A VOTE FOR STEVE SOUTHWELL TO SERVE ON THE DENCO 911 DISTRICT BOARD OF MANAGERS.

LET ME JUST GET ON THE RIGHT PAGE HERE. OKAY.

I MOVE TO CAST A VOTE FOR STEVE SOUTHWELL TO SERVE ON THE DENCO 911 DISTRICT BOARD OF MANAGERS.

SECOND. OKAY THERESA IF YOU'LL TAKE THE ROLL? OKAY. ITEM L1 PASSES BY UNANIMOUS VOTE WITH STEVE SOUTHWELL BEING THE CANDIDATE.

ALL RIGHT. WE THE TIME IS NOW. DO WE HAVE ANY MORE FOR CLOSED SESSION? YEAH WE DO. THE TIME IS NOW 748. THE TOWN COUNCIL IS CONVENING INTO CLOSED SESSION PURSUANT OF PURSUANT TO TEXAS GOVERNMENT CODE

[M. CLOSED MEETING (Part 2 of 2)]

CHAPTER 551, SECTION 071, 072, 074 AND 087, WE WILL BE RIGHT BACK.

GOOD EVENING FLOWER MOUND THE TIME IS NOW 8:15 P.M., AND WE ARE NOW RECONVENING INTO AN OPEN MEETING.