On Thursday morning, September 19, 2024, the Brownfield City Council held its regular scheduled meeting and adopted the 2024-2025 fiscal budget and property tax rate. The meeting began with a call to order, an invocation, and pledges, after which the council started working on the agenda.
There were no public comments, and the Council approved the minutes from the September 5 and 12, 2024 meetings. City Manager Jeff Davis then provided the monthly financial and investment reports for August 2024. According to Davis, 90.32% of the budget has been spent, with 91.86% of budgeted revenue collected. This is on track for the final month, which is September 2024.
Davis mentioned that the hotel occupancy tax fund (HOT fund) revenue is down 6.48% compared to the expenses. However, Davis also pointed out that the final quarter of HOT Funds revenue will come in on September 30, 2024, which is the last day of the 2023-2024 fiscal budget. Another point Davis made was about the Brownfield Industrial Development Corporation’s (BIDCorp) revenue. According to the financial report for August 2024, BIDCorp has brought in 122.40% in revenue for the fiscal year so far, which is 22.40% more than budgeted. Additionally, BIDCorp’s expenditures are at 63.41%. In the Investment Report, the city had $24,409.93 in accrued interest. Also, the City is pledged in deposits by 156.02%, which exceeds the statutory requirement of 105%. The Council approved both the financial and investment reports.
Next, the Council would discuss and consider adopting the 2024-2025 fiscal budget. On Thursday, Sept. 12, 2024, the Council held a public hearing on the proposed budget. There was no citizen or interested party that spoke at the public hearing. This allowed the Council to adopt the budget.
When proposing and adopting the city budget, certain elements need to be considered. According to the Terry County Appraisal District, the certified property values for 2024 have increased by nearly $17 million, or 5.851%. This growth reflects an increase in certified valuations from $289 million to $306 million. The main contributors to this increase were improvements and personal property. Although the city cannot adopt the tax rate prior to the budget, property tax rates play a role in the budget.
The proposed budget includes a tax rate of $0.481306 per $100 valuation, which is a decrease of $0.0193 from the prior year. Despite this decrease, the typical Brownfield homeowner will see a 3.95% overall decrease in their tax bill, which is approximately $19.70 less per year. The City’s General Fund will experience a 3.5% increase in property tax revenue, amounting to $52,895, due to increased certified values.
The proposed General Fund budget is $7,442,552, without using any undesignated reserve funds. The General Fund, supported by taxpayers and service fees, funds critical services including Police, Fire, Parks & Recreation, and Streets. After the 2024-2025 Fiscal Year Proposed Budget was filed, the City of Brownfield received notice that the long-standing Interlocal Agreement between the City of Brownfield and Terry County for the maintenance and operation of parks would be terminated. This created a $300,000 shortfall in revenue for the General Fund. To address this, a City Council budget work session was held, and the Council made adjustments by eliminating a subsidy to the Brownfield Emergency Medical Service for indigent care in Terry County and by invoicing for the utilities, maintenance, and operation of Terry County-owned park facilities. These adjustments reflect the Council’s commitment to adapting in the best interest of taxpayers.
Next is the proposed Enterprise Funds budget, which amounts to $14,387,739. This budget includes appropriations to other funds totaling $4,463,203. Enterprise funds are primarily financed by user fees, allowing citizens to manage costs based on their usage of services such as Power & Light, Water & Sewer, and Garbage. Key elements of the enterprise funds involve the acquisition of treated drinking water from the Canadian River Municipal Water Authority, as well as energy procurement through Power Purchase Agreements with American Energy Partners and the West Texas Municipal Power Agency.
Sales tax is projected to experience a slight increase, reaching $1,218,038, contributing 5.59% to the total budget revenue. This growth could be further supported by the expansion of commercial and residential sectors, as well as an increase in tourism activities.
In order to support and plan for Brownfield’s long-term needs, the Fiscal Year 2024-2025 budget incorporates a Five-Year Strategic Capital Plan. This plan identifies projects scheduled for the next five years, taking into account funding availability and project priority. Some of the key long-term capital items include:
- Access Control Security (Municipal Court)
- Communication Consoles (911 dispatch)
- Patrol Units with equipment (2 Tahoe’s, less trade-in)
- Animal Shelter Repairs
- Loader (5-Year Buyback)
- Maintainer (5-Year Buyback)
- Park Upgrades (Trees, Irrigation, Trail)
- Purchase of Park Tractor
- Flagpole (Hamilton Park)
- Pickleball Court
- Fall Zone Material for Playgrounds
- Replacement of 42′ Telescopic Bucket Truck (Carryover from FY 2023-2024)
- SCADA Upgrades
- Rebuild of Pump Station (Water)
- Rebuild of Well Building (Water)
- Water System Main Replacement
- Manhole Replacement (2)
- Compactor (5-Year Buyback)
- Garbage Truck (Carryover from FY 2023-2024)
The Council believes it is important to prioritize the well-being of its frontline staff. These employees are essential to the City of Brownfield and take pride in their work and its impact on the community. As part of this year’s budget, all employees will receive a 4.9% wage increase.
In the fiscal budget, employee insurance benefits include medical, life, accidental death, and COBRA coverage, as well as health reimbursement account (HRA) administration. The City is committed to its employees by covering both employee and dependent medical insurance premiums, and by reimbursing employees for any deductibles exceeding $2,500. The City Council has decided to continue using Brinson Benefits to negotiate lower premiums through a $4,000 deductible plan. Thanks to lower claims and the use of the HRA, this budget shows a 2.0% decrease in the City’s healthcare costs. The Council unanimously approved the proposed 2024-2025 fiscal budget, which was adopted.
The Council moved on to the next item of business, which was to have a public hearing on the proposed tax rate. No citizen or interested party spoke during the public hearing. This led the Council to the next agenda item, which was to approve and adopt the 2024-2025 property tax rate. The Council decided to go with the “Voter Approved Rate” (VAR) of $0.481306 per $100 valuation, while the previous tax rate was $0.500592. This represents a decrease of $0.0193 from the prior year. Despite this, the typical Brownfield homeowner will see a 3.95% overall decrease in their tax bill, which is equivalent to approximately $19.70 per year. Additionally, the city will gain $52,895 due to increased certified values. All council members approved the rate, and it was adopted.
The council has approved an increase in utility rates for electricity, water, and sewage. This will be the final rate increase for water and sewage. For electricity, the council has voted to implement a 2.5% annual increase for the next five years, starting in 2023. The current Service Availability Charge is $15.03 and will be raised to $15.81.
In terms of water charges, the minimum bill for up to 1,000 gallons is currently $17.65, with an additional charge of $3.05 per 1,000 gallons beyond 1,000. With the new rate increase, the minimum charge for up to 1,000 gallons will be $22.32, and the charge from 1,000 to 10,000 gallons will be $3.87 per 1,000 gallons. Any usage over 10,000 gallons will be charged at $4.46 per 1,000 gallons.
The council has given approval for these rate increases as outlined.
The Council proceeded to review the quarterly reports for the Streets and Sanitation Departments. The report was presented by Javier Duran, the Supervisor of Streets and Sanitation. He mentioned that the departments are actively engaged in maintaining streets and fixing potholes. The paving project commenced on August 15th, starting with the resurfacing of North Cedar from Tahoka Road to Stewart Street. This phase was mostly completed by around August 21st, with only the lane striping remaining. Temporary tabs have been placed to mark the lanes until the striping is completed. Currently, the contractors are working on phase two, which involves strip paving the unpaved roads in the city. Duran also reported that most of the streets have been paved with the first course of a two-course chip seal.
On the Sanitation side, Duran said, “We continue with the alley clean up running the sections as needed as well as taking care of work orders. We are continually working on keeping alleys maintained. The landfill continues business as usual. Despite the compactor being down, we continue business as usual. Garbage collection continues as well. We have worked out some issues and have been able to keep two trucks running pretty steadily.” The Council approved both reports.
The Council scheduled a public hearing regarding a request to replat block 19, lots 6 and 7 of the Oak Grove Addition in Brownfield. The purpose of the replat is to combine lots 6 and 7 into one. No citizens or interested parties spoke during the hearing, so the Council moved to consider the request for the replat. The Zoning Committee approved the change of zoning from commercial to residential. However, Councilman Mark Williams suggested that the Council should postpone the decision until the City receives a plat. As a result, the Council decided to table the item.
The Council then approved a “Type 3 Special Event Permit” to the Brownfield Chamber of Commerce for the upcoming Terry County Harvest Festival.
All council members were present and the next meeting is slated for October 3, 2024 at 7:30 am in the Council Chamber at City Hall.
