City Council Approves Proposed Tax Rate; Business Expansions; Frontage Road Proposition
The City Council of the City of Sweetwater, Texas, met in regular session on Tuesday, August 9, at 9 a.m. in the City Council Chambers of the City Hall, 200 E. 4th Street, Sweetwater. Pursuant to Section 551.071 of the Texas Government Code, the City of Sweetwater reserves the right to consult in closed session with its attorney to receive legal advice regarding a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this chapter, to include any item listed on this agenda.
The Mayor, Jim McKenzie called the meeting to order and the City asked Kathy Monroe from First Presbyterian Church to give the Invocation and Councilman Baker to lead in the Pledges of Allegiance to the Flags of the United States of America and the State of Texas..
City Council approve of minutes for meeting held on July 12, 2022. There were no changes.
The Public Comments and Receipt of Petitions portion was opened up: [At this time, anyone will be allowed to speak on any matter, other than personnel matters or matters under litigation, for length of time not to exceed three minutes. No Council/ Board discussion or action may take place on a matter until such matter has been placed on an agenda and posted in accordance with law - GC, 551.042.]. There were no such petitions or comments.
A presentation was given to the City Council by Ms. Jennifer Cunningham and Mr. Ethan Wilson with the Nolan County Health Department regarding Health Disparities Program. Action Items for the City Council followed:
City Council to approved proposals for health, dental and life benefits for Fiscal Year 2022-2023. There were no respondents other than the incumbents. Total cost were projected to be $2, 200,000. The actual numbers through June annualized were just over $2,000,000. The projection estimate was over what the reality was, which was in actuality, 9 per cent below at the end of the policy year. The stop loss insurance has been outsourced because the City could get better rates...
The City cost, however, is 14 per cent higher than last year and there has been expense this year but not as much as projected. The 2022 renewal with Blue Cross and High Mark are saying claims will go up by 20 percent but this could be off again, per the actuary. The administrative fees are actually coming down 40 per cent. High Mark is projecting a 17.28 percent increase in stop loss, but an 11.28 percent decrease in the City’s aggregate stop loss , which is a 17.21 percent or a $2.6 million plan next year.
Blue Cross proposed an aggressive indiviual stop loss bid. If the stop loss is moved back to Blue Cross, they are projecting an 8.59 decrease in the individual stop loss premium. This is a savings of $30 per employee per mon-thas the cost will go down from $358 to $328. . This would be a savings of $2.4 million or a 10.72 increase. Stop loss will be moved back to Blue Cross.
Group Life insurance is with Oaks Securian is giving a flat renewal and a 5 year rate guarantee. These are the only bid. Dental and Vision ius sured by Ameritas and they are the only ones who bid and projected a slight increase. There were no alternative bids.
City Council to discuss, consider, and to schedule a public hearing for September 13, 2022 on the proposed budget for Fiscal Year Ending 2022-2023. Patty Torres spoke on this matter. She went over different taxes. The City is proposing .5075 as the new tax rate. This is lower than the current rate of .548, even though revenue is increasing. The no new tax rate this year is .498708 and is calculated by taking last year’s properties at today’s values. The voter approval tax rate is .508442. This is below the current rate. If not, an election would be triggered.
The City Council approved a proposed tax rate for the Fiscal Year Ending 2023, as .5075 per 100 dollars valuation, effectively a 1.76 increase in the tax rate but is lower than the voter approved tax rate. The Council took a record vote on the proposed tax rate, and to schedule a public hearing for September 13, 2022 and an adoption date of September 20, 2022.
City Council to approved an updated records management program policy to update the title of the records management officer. Miesha Adames spoke on the $222,000 for the relocation of utility lines to allow for a future expansion at Ludlum Measurement Headquarters located at 501 Oak Street. This max incentive agreement was approved at the MDD Board Meeting. This will be a 40,000-42,000 foot expansion. Mr. Ludlum will fund the utility relocation and this will be a reimbursement once commencement of construction has begun. It will be a 4 year term, with the option of a 3 year to reapproach the Board for an additional 3 years, if needed. If six employees are not hired within the term of 4 years, SEED/MDD can seek reimbursement of $37,000 per six they do not hire. Oncor, Altese and ATT will submit invoices for the reloation of utility poles. This will be payable when construction starts, not when poles are moved. This was approved.
City Council approved funding to assist with the Eljen expansion at 1300 W. Broadway. Ludlum Measurements does business as Eljin. This is a 42,000 square foot expansion. They are currently in the old packing plant. They have approached the MDD Board for funding of $770,000 for site work, demolition, excavation and dirt work and $70,000 for rerouting of sewer and other utility lines. This will be paid once invoices are submitted to SEED/MDD. It will be a one-time payment of a maximum amount of $840,000 or the lesser of given the total amount of invoices. There is a 3 year extension written into this agreement as well to re-approach the Board. Part of the agreement is the understanding that 20 workers are to be hired. SEED would then seek $42,000 per job that is not created out of the 20. City Council approved-funding to assist with the water line upgrades needed for Freddy’s Frozen Custards and Steakburgers. Currently, the water line cost is $196,807 The funding request from the SEED Board is $50,000 on behalf of the installation with the waterline. The City would contract a contractor for the waterline and SEED will reimburse the City.
City Council approved $50,000 funding to assist with the construction of the fitness court in Newman Park. This was previously approved at the SEED/ MDD Meeting on July 19. SEED/MDD has submitted this request as it is over the SEED/MDD $15,000 threshhold.
City Council approved a Resolution approving the annual Rate Review Mechanism (RRM) rate increase from Atmos MidTex. The request was made by Sean Martin, Public Affairs with Atmos Energy. The new rate would oncrease by $4.60 and commercial 13.40 per month. The Resolution was read into the record.
City Council approved the request to authorize seeking of bids for proposed water line replacement project located along CR 143 and 1-20 north Frontage Road. Total cost would be around $196,000. Bids are requested at this time.
The City Manager, David Vela presented the City MAnager’s Report.
Council Meetings September 13 and 20, 2022 SEED MOD Board Passed Resolution in Support of One-Way Access Roads Resolution: 2022-003 With increase in traffic and marketing community to national brand retailers and businesses.
This would transition the Frontage Roads from 2 lanes to 1 and benefit properties located on these roads. TXDOT has been informed and in the near future, the County, Commissioners and Judge City and MDD will meet with TXDOT on this issue.
City to add a Bond Election Committe for the 2024 election. This is an option and would be two Committee members, comprised of registered voters. Would recommened streets and projects and Council would have the final say. 18 months from the process of the next election starting up. It is recommended to put together a commitee in the next 6 months.
There is a new Animal Control Truck and was paid for by an anonymous donor. There will be a Meet and Greet Fire Chief Dewey Coy on, Fr1day August 12, 4:00 p.m. The Communiuty is invited.
The City Council sought and was granted an adjournment.