Dec 16, 2025 TIRZ #2 Board

SECOND THE CHAIR PRESENT, BUT SHE'S ON, SO WE DO NEED SOMEBODY IN THE ROOM TO BE ELECTED TO CHAIR THE MEETING FOR THE RECORD.

UH, A MOTION WAS MADE FOR MYSELF TO RUN THE, UH, TERMS MEETING, UH, FOR, UM, FOR THIS, UH, THIS TIME RIGHT HERE.

DO I HAVE ANYBODY THAT, DO WE HAVE A MOTION? MOTION'S BEEN MADE.

SECOND NOTE.

ARE THOSE IN FAVOR? AYE.

OKAY, THOSE IN FAVOR SAY AYE.

UH, FOR MYSELF TO RUN THE MEETING.

COMMISSIONER INGLESBY, COULD YOU TURN ON YOUR CAMERA PLEASE? A I'M HAVING TROUBLE WITH THAT.

I'M SO SORRY.

I DON'T KNOW.

UM, I DON'T SEE THE OPTION TO DO THAT.

IT'S, THIS IS, UM, I'M, I'LL LOOK WHILE Y'ALL CONTINUE.

UM, OKAY.

WE, WE DO, WE WILL NEED YOU ON CAMERA TO VOTE.

SO WE NEED TO MAKE SURE THAT THAT GETS RESOLVED IF WE NEED TO SWITCH TO A PHONE OR SOMETHING.

UH, WE'LL CONTINUE TO MOVE ON AGAIN.

WE WILL HAVE OPTION NUMBER TWO.

IT'S GOING TO BE THE APPROVAL OF THE MINUTES.

AGAIN, I'D LIKE TO CONSIDER TO MAKE THE APPROVAL OF THE MINUTES FOR JANUARY THE 15TH, 2025.

WE HAVE A MOTION AND A SECOND BY COUNCIL MEMBER, DR. HARRIS, ANY OTHER QUESTIONS YOU'D LIKE TO, OKAY.

AND THOSE IN FAVOR SAY AYE.

[III) Citizen Comment Period with TIRZ No. 2 Board]

NEXT WE HAVE CITIZENS COMMENT, PERIOD FOR THE BOARD'S.

TWO, UH, CHURCH BOARD WELCOMES COMMENTS FROM CITIZENS.

THOSE WISHING TO SPEAK ARE ENCOURAGED TO SIGN IN BEFORE THE MEETING BEGINS.

SPEAKERS MAY BE PROVIDED WITH THE OPPORTUNITY TO SPEAK DURING THIS TIME ON ANY AGENDA ITEM OR ANY OTHER MATTERS CONCERNING JURORS NUMBER TWO, BOARD BUSINESS.

AND PLEASE OBSERVE THE THREE MINUTE TIME LIMIT.

DO I HAVE ANYBODY WHO WOULD LIKE TO SPEAK REFERENCING THE CHURCH BOARD? OKAY.

YOU HAVE ONE.

I'LL FILL OUT A COMMENT.

PLEASE STATE YOUR NAME FOR THE RECORD, PLEASE.

AND AT THE RATE OF $550,000, IF WE ADD ANOTHER 20 MILLION, IT'LL BE ALMOST WHAT, 40, 80 YEARS BEFORE THIS GETS PAID BACK AS A REMINDER.

UH, FOR THE RECORD, MY NAME IS YVONNE FLORES KALE.

UM, AND I AM HERE TO TALK ABOUT THE ADOPTION OF THE 20 25, 20 26 BUDGET, WHICH I BELIEVE WAS ALREADY ADOPTED BY THE COUNCIL, BUT WAS NOT YET ADOPTED BY THE S BOARD, WHICH IS YOU GUYS.

UM, SO THE CONCERNS THAT I HAVE RIGHT NOW ARE THE AMOUNTS THAT YOU GUYS ARE GOING TO BOND OUT.

UH, THESE ARE CO BONDS, WHICH MEANS THEY DO NOT GO TO THE VOTERS.

THIS IS A GROUP OF HAYES COUNTY, I'M SORRY, HAYES COUNTY AND, UH, CITY OF KYLE COUNCIL MAKING THESE DECISIONS FOR OUR RESIDENTS.

UH, COUNCIL MEMBER, I MEAN, NOT COUNCIL MEMBER, UM, COMMISSIONER COHEN AND INGLESBY BOTH REPRESENT AND LIVE ON THE EAST SIDE, WHERE WE DO HAVE A TURS WHERE WE HAVEN'T SEEN ANY MONEY.

THOSE ARE THE ROADS.

COUNTY ROAD 1 58.

THERE'S, UH, ONE 50 BOTH THAT NEEDS LIGHTING AND TO BE EXPANDED.

SO SEEING $21.6 MILLION BEING BONDED OUT FOR AN AREA THAT JUST RECEIVED $20 MILLION FROM OUR GENERAL FUND, UM, WITHIN THE LAST FOUR YEARS, IS A BIT CONCERNING.

IT CAUSES A GREATER DISPARITY.

UM, AND, AND FOR, FOR ME AS A, A RESIDENT OF KYLE, I FEEL LIKE WE SHOULD HAVE SOME SAY IN HOW THESE CO BONDS ARE GONNA BE SPENT.

UM, ALSO THERE LOOKS LIKE THERE'S $1.1 MILLION IN OUTSTANDING DEBT THAT WE HAVE TO PAY FOR.

AS FAR AS I'M ASSUMING THE BONDS THAT HAVE ALREADY BEEN PASSED FOR THIS AREA, UH, THAT TRANSFERS OUT ARE $550,000.

AND WHAT THAT MEANS IS THIS TURS IS PAYING BACK THE CITY THE $20 MILLION THAT IT BORROWED OUT OF THE GENERAL FUND.

[00:05:01]

A TS DOES EXP OR DOES EXPIRE.

SO IF THAT MONEY IS NOT PAID BACK FROM THE TS TO THE GENERAL FUND, WE'LL JUST SIMPLY CALL IT A A LOSS.

SO, UM, I'M HOPING THAT AS YOU GUYS MAKE THESE VOTES, AND I'M SURE YOU GUYS WERE TOLD IT'S ALREADY HAPPENED.

IT ALREADY PASSED, THERE'S NOT NOTHING YOU CAN DO.

AND IF THAT WERE THE CASE, IT WOULD NOT BE IN FRONT OF YOU RIGHT NOW.

SO MAYBE WE CAN CHANGE OUR MIND.

MAYBE WE CAN THINK THOROUGHLY A LITTLE BIT BETTER ABOUT HOW WE WANNA SPEND OUR BONDING CAPACITY.

UM, I'M NOT TOO SURE IF ANOTHER $20 MILLION IN THIS AREA IS NECESSARY, OR IF THREE ROUNDABOUTS, I MEAN, THIS IS GOING FOR THREE PROJECTS.

THREE PROJECTS ARE GONNA GET $21 MILLION.

UM, AND OF THOSE THREE, ONE ARE ROUNDABOUTS, UM, THAT I'M SURE THAT ARE NOT NECESSARY.

SO I HOPE YOU GUYS TAKE THAT INTO CONSIDERATION AS YOU TAKE YOUR VOTE TODAY.

THANK YOU VERY MUCH.

DO WE HAVE ANYBODY ELSE WHO WOULD LIKE TO SPEAK? UH, GOOD EVENING COUNCIL IN SIX WEEKS.

UM, BUT I JUST WANTED TO SAY, UM, IF THERE'S ONE MESSAGE THAT I HOPE THAT YOU ALL HEARD THIS PAST WEEK IS THAT IT LOOKS LIKE IT APPEARS THAT THE CITY NEEDS A CHANGE.

THE CITY'S VOTING FOR A CHANGE, AND THAT, THAT THAT VOTE REPRESENTS A CONSERVATIVE VOICE AND THAT SPENDING MONEY WILLY-NILLY IS NO LONGER THE WAY THINGS SHOULD BE DONE.

AND THAT'S BEING AN ACCUSATORY FASHION.

BUT BEING CONSERVATIVE IN THE ECONOMIC ENVIRONMENT THAT WE COULD BE HEADED TO IN SHORT ORDER, I THINK REQUIRE, REQUIRES, UH, PRUDENCE ON ALL OF OUR PARTS AND, UH, MAKING SURE THAT THE MONEY THAT WE SPEND IS WELL SPENT.

NOW WE'RE GOING ON TO AGENDA.

THANK YOU, SIR.

AND IF YOU WOULDN'T MIND TO BOTH YOU, IF YOU HAVE, UH, FORMS TO FILL OUT TO TURN IT INTO THE CITY SECRETARY, ANYBODY ELSE WOULD LIKE TO SPEAK? OKAY.

CITIZENS' COMMENT IS CLOSED.

[2) Consider approval of a resolution to adopt the annual budget for the Kyle Tax Increment Reinvestment Zone Number Two (TIRZ No. 2) for fiscal year 2025-26.]

ITEM NUMBER FOUR WOULD BE CONSIDER THE APPROVAL OF A RESOLUTION TO ADOPT THE ANNUAL BUDGET FOR THE KYLE TAX INCREMENT REINVESTMENT ZONE NUMBER TWO, FOR THE FISCAL YEAR OF 2025 THROUGH 26.

OUR PRESENTERS CAN BE PROGRESS.

MOHE, DIRECTOR OF FINANCE.

SO BOARD MEMBERS.

UH, GOOD AFTERNOON FOR THE RECORD.

I'M PERVE MAHI CITY'S DIRECTOR OF FINANCE.

I'VE PREPARED A BRIEF PRESENTATION TO WALK YOU THROUGH THIS, UH, AGENDA ITEM AND THE DETAILS OF IT.

SO THIS AGENDA ITEM BEFORE YOU IS A RESOLUTION TO ADOPT THE ANNUAL BUDGET FOR THE KYLE TAX INCREMENT REINVESTMENT ZONE NUMBER TWO, OR COMMONLY REFERRED TO AS TCH NUMBER TWO.

AND THE BUDGET IS FOR FISCAL YEAR 25 DASH 26.

THIS BUDGET COVERS 12 MONTHS FOR THE PERIOD OCTOBER 1ST, 2025 TO SEPTEMBER 30TH, 2026.

CHARGE NUMBER TWO WAS CREATED AS A 50% PARTICIPATING REINVESTMENT ZONE.

BOTH THE CITY AND COUNTY PARTICIPATE AND CONTRIBUTE 50% OF INCREMENT TAX REVENUES INTO THIS ZONE.

THE BUDGET FOR TARION NUMBER TWO FOR FISCAL YEAR 2025 DASH 26 TOTALS APPROXIMATELY $27.5 MILLION IN A JUST A FEW.

UH, NEXT FEW SLIDES, I WILL SHOW YOU THE SUMMARY AND ITEMIZED BUDGET FOR CHURCH NUMBER TWO FOR THIS FISCAL YEAR.

AND THE DETAILED LINE ITEM BESIDES BEYOND THE SUMMARY, THE DETAIL LINE ITEM BUDGET IS ALSO PROVIDED IN YOUR AGENDA PACKET AS EXHIBIT NUMBER THREE.

ESTIMATED BEGINNING BALANCE $3.4 MILLION.

SO HERE'S THE FIRST SLIDE.

UH, THIS SHOWS THE TOTAL ESTIMATED, AND THAT'S THE KEY WORD TO REMEMBER IS ESTIMATED.

THESE ARE THE TOTAL SOURCES OF ESTIMATED FUNDS THAT WILL BE AVAILABLE INTS NUMBER TWO, DURING THIS FISCAL YEAR.

SO IF YOU GO CLOCKWISE, THE TAX INCREMENT REVENUE THAT IS ESTIMATED FROM THE CITY, THE CITY'S PORTION OF 50% IS ABOUT 5% OR $1.5 MILLION.

NEXT TAX INCREMENT FROM HAYES COUNTY IS ESTIMATED AT 4% OR $1.2 MILLION.

WE HAVE A BEGINNING BALANCE, UNAUDITED BEGINNING BALANCE BECAUSE THE AUDIT IS NOT COMPLETE YET OF APPROXIMATELY $3.4 MILLION THAT WILL BE AVAILABLE FOR USE DURING

[00:10:01]

THE FISCAL YEAR.

AND THEN THE, THE BIG, THE LARGEST SLICE OF THE PIE HERE ARE 78%.

WE ARE ESTIMATING THAT TO COVER THE CAPITAL EXPENDITURES DURING THE YEAR.

IF THE ENGINEERS ARE RIGHT ON THEIR ESTIMATE FOR THE PROJECT EXPENDITURES, WE WILL NEED TO ISSUE CERTIFICATES OF OBLIGATIONS OR BONDS DEBT TO PAY FOR THOSE CIP, WHICH WE ESTIMATE THAT WE, IF THE ENGINEERS ARE ON TARGET, THAT WE WILL NEED ABOUT 21.6 MILLION IN BOND PROCEEDS.

SO IN TERMS OF ESTIMATED USES OF THOSE FUNDS, SO IN THE PREVIOUS SLIDE I SHOWED YOU THE SOURCES OF FUNDS THAT WILL COME IN.

AND THIS SLIDE NOW SHOWS YOU HOW THOSE FUNDS WILL BE USED.

AND THESE ARE ALL ESTIMATED NUMBERS.

THE RED SLICE IS DEBT SERVICE.

THIS IS DEBT SERVICE PRINCIPLE AND INTEREST THAT WILL BE DUE DURING THE FISCAL YEAR ON THE DEBT WE HAVE ALREADY ISSUED FORTS.

NUMBER TWO, THE DEBT SERVICE IS APPROXIMATELY 1.2 MILLION OR 4% OPERATIONS AND MAINTENANCE EXPENDITURES IN THE TS IS ABOUT 2% OR $600,000.

AND THEN TRANSFERS OUT TO GENERAL FUND.

THIS IS THE REPAYMENT OF THE LOAN THAT GENERAL FUND MADE FOR THE, UH, DESIGN AND CONSTRUCTION OF THE TWO PARKS IN CHARGE NUMBER TWO, $550,000 OR 2%.

AND THEN HERE THE LARGEST EXPENDITURE OR SLICE OF PIE IS THE CAPITAL EXPENDITURE.

92% IS PROJECTED TO BE FOR CIP PROJECTS WITHIN THIS TURS OR $25.1 MILLION.

SO THE SAME TRANSLATION IN A BULLET FORM OF THE TWO GRAPHS I JUST SHARED WITH YOU.

SO THE SOURCES OF ESTIMATED AVAILABLE FUNDS, AND AGAIN, IT'S IMPORTANT TO NOTE THAT THESE NUMBERS ARE ALL ESTIMATED.

THE ENTIRE BUDGET FOR THE CITY IS ESTIMATE SO IS THET BUDGET.

WE HAVE $3.4 MILLION IN ESTIMATED BEGINNING FUND BALANCE, $1.5 MILLION FROM TAX INCREMENT REVENUES FROM THE CITY'S 50%, $1.2 MILLION FROM ESTIMATED TAX INCREMENT REVENUES FROM HAYES COUNTY'S PORTION OF 50% AND 21.6 MILLION IN DEBT PROCEEDS.

ANOTHER IMPORTANT ITEM, UH, FACTOR TO KEEP IN MIND IS WHEN WE SPEAK OF DEBT, IT DOES NOT MEAN WE'RE GONNA GO ISSUE $21 MILLION TOMORROW.

IT WILL BE ISSUED ONLY IF IT IS NEEDED DURING THE FISCAL YEAR.

A LOT OF FACTORS COME INTO PLAY.

PROJECTS MAY GET DELAYED, DESIGN MAY GET DELAYED, THERE MAY BE RIGHT AWAY ACQUISITION UTILITY RELOCATIONS, UM, THINGS OF THAT NATURE.

SO 21.6 MILLION IS OUR BEST ESTIMATE THAT WE MIGHT NEED IN, UH, DEBT PROCEEDS, BUT WE DON'T KNOW.

IT MIGHT BE LESS.

UH, LAST YEAR WE HAD PROJECTED THAT WE WOULD NEED ABOUT $15.3 MILLION.

THE, THE REAL DOLLARS AFTER THE ENGINEERS GOT DONE WITH THE PROJECTS FOR CHARGE NUMBER TWO, IT, IT WAS SCALED BACK BY 6 MILLION.

IT WAS 9.3.

THE OTHER HALF OF THIS SLIDE IS THE ESTIMATED USES OF FUNDS, WHICH IS 27.5 MILLION 598,000 IS FOR OPERATIONS AND MAINTENANCE.

550,000 IS FOR REPAYMENT TO GENERAL FUND.

1.2 MILLION IS FOR PRINCIPAL AND INTEREST ON EXISTING DEBT.

AND THEN 25 MILLION IS ESTIMATED, UH, FOR CAPITAL PROJECTS.

WE HAVE THREE ROUNDABOUTS, A ILLUMINATION IMPROVEMENT PROJECT WITHIN TOUR NUMBER TWO.

AND THEN WE HAVE SOME MEDIAN IMPROVEMENTS ON KOHLER'S CROSSING.

SO THIS IS THE OFFICIAL SUMMARY BUDGET FOR CHARGE NUMBER TWO.

AND EVERY LINE IS BROKEN INTO DETAILS.

THAT IS IN YOUR AGENDA PACKET AS EXHIBIT THREE.

SO AT A VERY SUMMARY LEVEL IS BASICALLY A RECAP OF WHAT I JUST WENT OVER.

THESE ESTIMATED REVENUES AND BOND PROCEEDS ARE AS FOLLOWS.

REVENUES ARE TAX INCREMENT REVENUES FROM BOTH CITY AND AND COUNTY 2.67 MILLION PLANNED OR ESTIMATED BOND PROCEEDS OF 21.6.

THAT

[00:15:01]

GIVES US A TOTAL OF $24.27 MILLION.

AND THEN WHEN YOU ADD UP THE BEGINNING BALANCE, WE HAVE LINE NUMBER EIGHT, WE HAVE TOTAL ESTIMATED AVAILABLE FUNDS OF 27.7.

THEN WITH LINE NUMBER 10, THESE ARE THE ESTIMATED REQUIREMENTS OR FUNDING REQUIREMENTS THAT WE PROJECT THAT WE MAY NEED DURING THE FISCAL YEAR.

OPERATING EXPENDITURES, 598,000 CIP EXPENDITURES, 25.1 MILLION DEBT SERVICE.

THIS IS PRINCIPAL AND INTEREST ON EXISTING DEBT, $1.1 MILLION AND TRANSFERS OUT TO THE GENERAL FUND FOR REPAYMENT 550,000.

SO WHEN YOU ADD UP ALL THE REQUIREMENTS OR EXPENDITURES, LINE 15 IS 27, TOTAL EXPENDITURES IS 27.45 MILLION.

SO THE DIFFERENCE BETWEEN LINE EIGHT AVAILABLE FUNDS AND LINE 15, THE REQUIREMENTS IS WHAT LEAVES AN ESTIMATED FUND BALANCE.

WE PROJECT THAT IF THE ENGINEERS ARE RIGHT AND OUR TAX REVENUES COME IN AS WE PROJECT AND THE REMAINDER OPERATING EXPENDITURES HAPPEN AS WE PROJECT, THEN WE ESTIMATE THAT AT SEPTEMBER 30TH, 2026, WE'LL HAVE APPROXIMATELY 260,000 REMAINING IN THE TS FUND.

SO AS WE HAVE ALWAYS DONE FOR OUR BOARD, WE PROVIDE YOU OPTIONS ON ON ACTION ITEMS. SO THE RESOLUTION BEFORE YOU, THE OPTIONS ARE APPROVE THE RESOLUTION, DENY APPROVAL OF RESOLUTION, AND OPTION THREE, ANY, ANYTHING ELSE THAT THE BOARD WOULD LIKE STAFF TO DO WOULD BE UNDER OPTION THREE.

STAFF RECOMMENDS APPROVAL OF RESOLUTION AND I'LL BE HAPPY TO ANSWER ANY QUESTIONS Y'ALL MAY HAVE.

OKAY, THANK YOU.

I'LL START ON THIS END.

DO WE HAVE ANY QUESTIONS, UH, FOR MR. VE? OKAY, ANY QUESTIONS ON THIS END HERE? COMMISSIONER INGLESBY, DO YOU HAVE ANYTHING TO ADD MA'AM? SINCE YOU'RE THE CHAIR, IT ? NO.

UM, I HAVE A QUICK QUESTION ON THIS END, UH, PEREZ.

YES SIR.

WHEN WE'RE TALKING ABOUT THE $21 MILLION AND 600 IS FOR THE, THAT COMES OUT OF A CO BOND, WHERE WOULD THIS FUNDING COME FROM AS FAR AS THE, UM, CO SAID, WILL THIS COME FROM THE GENERAL FUND TO HELP PAY FOR ANY EXPENDITURES UP TO THAT AMOUNT? SO THAT'S A, THAT'S A VERY GOOD QUESTION.

SO THINK OFTS AS A BOUNDARY CREATED BY CITY COUNCIL AND THE COUNTY MM-HMM .

SO EVERY EXPENDITURE THAT HAPPENS WITHIN THE, THAT BOUNDARY, INCLUDING THE DEBT WE TAKE ON FOR PROJECTS WITHIN THAT BOUNDARY IS TO BE REPAID WITH MONIES FROM THE TURS REVENUES.

IT COULD BE COMBINATION OF TAX REVENUE, INCREMENT TAX REVENUES, IT COULD BE INTEREST INCOME, OR THERE MAY BE OTHER FEES AND CHARGES THAT MAY GENERATE DURING THE YEAR.

UM, SO THE DEBT, TO ANSWER SPECIFICALLY THE DEBT QUESTION, IT WILL BE REPAID WITH TURS TO TAX REVENUES THAT COME IN DURING THE YEAR THAT IS COLLECTED.

THE 50% CITY SHARE AND 50% FROM THE COUNTY SHARE.

NONE WILL BE PROVIDED BY THE CITY'S GENERAL FUND.

UH, ESTIMATED COST EXPENDITURES OR ARE THESE JUST SOMETHING TO WHERE, UM, THESE ARE GONNA BE THE ONES THAT WE MIGHT HAVE TO INCREASE LATER ON IN, IN THE FUTURE IF, IF WE DON'T MEET THAT 21 MILLION BOND? THESE ARE COP, THESE ARE OUR CONSULTANT AND OUR INTERNAL ENGINEERS BEST ESTIMATE FOR EACH ONE OF THESE PROJECTS.

SO IT'S ALL GONNA COME IN FROM THE TAXES THAT COME IN FROM THAT SPECIFIC AREA ITSELF.

THAT I THINK THE CONS, I GUESS THE QUESTION OR THE CONCERN WOULD BE IF WE HAVE TO MAKE UP ANY OF THESE DEBT COSTS, THAT IT WOULD COME FROM OUR GENERAL FUND JUST TO BE ABLE TOTER PAY THE TERMS BACK ON ANY OF THESE EXPENDITURES AND SO FORTH.

YOU DO HAVE A BREAKDOWN OF THE CIP PROJECTS LISTED BY LISTED UP.

'CAUSE IT SAYS IN IN SUMMARY YOU HAVE 25 MILLION, UH, FOR CAPITAL IMPROVEMENTS, INCLUDES THE ROUNDABOUT ILLUMINATION IMPROVEMENTS AND MEDIAN IMPROVEMENTS.

YOU HAVE IT BROKEN DOWN AND I BELIEVE IT'S ON THE OTHER PAGE WHERE YOU HAVE, UH, CROM RAIL'S GONNA BE FOUR BANNER'S GONNA BE FOUR SIX, UH, SANDERS IS GONNA BE FOUR SEVEN AND THE ILLUMINATION IS GONNA BE 11, UM, 11 MILLION TOTAL.

THAT'S LEADS YOUR 25 MILLION 1 52.

UM, I GUESS FOR SOME PEOPLE WOULD WANT A COMPLETE BREAKDOWN OF EACH ONE.

BUT THAT'S JUST, UH, A BIG SUMMARY.

SO IS, ARE THESE,

[00:20:01]

THESE COSTS HAVE NOT INCURRED YET.

SO IT MIGHT BE LOWER, IT MIGHT BE SLIGHTLY HIGHER, BUT THEY'VE BEEN PRETTY GOOD ABOUT STAYING WITHIN THEIR BUDGET.

SO THE OTHER THING TO KEEP IN MIND AS I CAUTIONED YOU IN MY OPENING STATEMENT, THAT THESE ARE ALL ESTIMATES.

THERE'S NO GUARANTEE THAT THESE PROJECTS WILL SPEND EXACTLY THE NUMBERS THAT, THAT YOU SEE BEFORE YOU, THESE ARE STRICTLY ESTIMATES.

THERE MIGHT BE DELAYS ON THESE PROJECTS OR ONE MAY MOVE FASTER THAN THE OTHER.

UH, THE TOTAL MAY, MAY NOT BE EXACTLY $25 MILLION.

SO WHEN WE DO NEED TO DETERMINE DURING THE YEAR WHEN WE NEED TO GO TO THE BOND MARKET, WE WILL ESTIMATE HOW MUCH DO WE REALLY NEED? ARE THE ENGINEERS ESTIMATE ARE CLOSE ENOUGH? WHAT ARE THE BIDS COMING IN? ARE THEY LOWER THAN WHAT THE ENGINEERS THOUGHT? AND WE ALSO HAVE TO FIGURE OUT, DO WE HAVE ENOUGH MONEY IN THE TURS TO BE ABLE TO CARRY THAT DEBT WE'RE ABOUT TO ISSUE? WE WILL NOT ISSUE DEBT THAT WE'RE UNABLE TO CARRY WITH THE, THE BEST ESTIMATE OF OUR REVENUE SOURCES FOR THE TURS.

YEAH.

WE DON'T WANT TO GO OVER WHAT WE BUDGETED, CAN'T AFFORD AND SO FORTH.

EXACTLY.

AFFORD.

YES.

SO IF WE SEE THAT WE NEED TO EITHER BALANCE IT OUT OR SOME OF THIS MAY COME IN AT A LOWER RATE, WHICH WILL BENEFIT US IN THE LONG RUN, IT'S JUST BASICALLY IN THE SENSE OF THIS IS WHAT OUR TOTAL NUMBER WOULD BE.

AND IT COULD PROBABLY COME IN A LOT LESS, WHICH WE'VE HAD SOME PROJECTS COME IN UNDER, UH, LIKE ONE OF THE ROADS OVER THERE ON EAST SIDE THAT CAME UNDER $2 MILLION UNDER BUDGET, WHICH WE WERE ABLE TO COMPLETE, BUT WE WERE ABLE TO, UH, WORK THROUGH THAT.

YES, SIR.

WELL, KOHLER'S, UH, T SETON WAS $8 MILLION UNDER BUDGET.

YES.

MM-HMM .

WHICH WAS A, A SIGNIFICANT NUMBER.

I DON'T KNOW IF WE'LL BE UNDER BUDGET OR NOT ON THESE, BUT WE, WE DO EXPECT TO BID THESE PROJECTS IN THE FIRST QUARTER OF NEXT YEAR.

ALL OF THOSE CONTRACTS AND THOSE BIDS WILL THEN COME BACK TO THIS BOARD AND THEN ULTIMATELY TO THE CITY COUNCIL TO CONSIDER AWARDING THOSE CONTRACTS.

SO YOU'LL SEE THE EXACT AMOUNTS AND HOW THOSE COMPARE WITH THESE PROJECTED BUDGET AMOUNTS TO DETERMINE, UH, IF WE'RE WITHIN BUDGET, UH, IF WE'RE, IF IT'S OVER BUDGET IN THE BIDS, THEN WHAT TYPES OF, UM, VALUE ENGINEERING WOULD YOU WANNA DO ON THE PROJECT? WHICH ONES MIGHT YOU WANT TO DELAY? HOW WOULD YOU DEAL WITH IT? ALL OF THOSE ARE THINGS THAT YOU COULD CONSIDER, BUT THIS IS SIMPLY THE PLANNING TOOL AND THE FINANCIAL TOOL RIGHT NOW.

ONCE WE HAVE THE BIDS, THEN YOU'LL HAVE MORE CERTAINTY ABOUT WHAT THAT ACTUAL COST WOULD BE THAT'S COMING IN IN THE NEXT QUARTER.

AND COUNCIL MEMBER, UH, , UM, THIS IS JUST A HYPOTHETICAL.

UH, IF WE WERE TO SAY NO, LIKE TO THIS, WHAT WOULD HAPPEN IF YOU WERE TO SAY DO NOT ADOPT A BUDGET? YEAH.

WELL THAT WOULD BE A CITY ATTORNEY QUESTION.

SORRY.

UH, MY FIRST SUGGESTION IS WE WOULD HAVE TO AMEND THE CITY COUNCIL BUDGET BECAUSE THIS WAS INCLUDED IN THE CITY COUNCIL BUDGET.

MY SECOND SUGGESTION IS THAT THESE PROJECTS WOULD NOT BE ABLE TO PROCEED BECAUSE THERE WOULD NOT BE FUNDING FOR THEM.

SO WE WOULD HAVE TO FIND OTHER FUNDING IF WE WANTED TO CONTINUE WITH THE PROJECTS.

SO TO BE CLEAR, THIS IS A NECESSITY IN ORDER FOR US TO CONTINUE MOVING WITH OUR CIP AND PLANNED.

IF, IF YOU WOULD LIKE TO DO THE, THESE PROJECTS THIS YEAR OR BEGIN THESE PROJECTS THIS YEAR, THEN WE WOULD NEED TO ADOPT BUDGET WITH FUNDING TO DO SO.

AND NOT ONLY, UH, COUNCIL MEMBER, I'D LIKE TO CLARIFY THAT A LITTLE FURTHER.

NOT ONLY THE CIP ITEMS, BUT THE DAY-TO-DAY OPERATIONS AND MAINTENANCE OF THOSE PARKS IN, IN CHURCH NUMBER TWO, THIS BUDGET PROVIDES FUNDING FOR THAT.

RIGHT.

AND, AND I JUST TO ECHO ON THOSE COMMENTS, IF THESE ARE NOT PROJECTS THAT THIS BOARD WANTS TO DO OR THE COUNCIL WANTS TO DO, THEN UM, THEN THIS IS NOT THE RIGHT BUDGET FOR YOU.

BUT THIS IS THE, THE PROJECTS THAT WE'VE, WE'VE INCLUDED IN THE CITY MANAGER'S BUDGET AND THE COUNCIL'S ADOPTED BUDGET THIS PAST YEAR THAT WE'VE BEEN WORKING ON.

WE'VE BEEN DESIGNING THOSE AS WELL AS ACQUIRING PROPERTY FOR THESE PROJECTS.

BUT THAT DOESN'T MEAN THEY HAVE TO PROCEED.

THOSE ARE ALL OPTIONS FOR YOU.

BLESS COUNCIL MEMBER MEDINA.

UM, ONE QUESTION FOR THE EXPIRATION OF THE TURS.

I WAS TRYING TO GET SOME CLARIFICATION ON THAT ONLINE.

IT HAD MENTIONED IT WAS ORIGINALLY 2037, BUT THAT THERE WAS AN UM, EXTENSION.

IS IT NOW 2057? THERE WAS AN EXTENSION, BUT I DON'T REMEMBER OFF THE TOP OF MY HEAD WHAT EXACTLY THAT DATE WAS.

TYPICALLY THESE ARE SET UP FOR 30 YEARS.

BECAUSE THERE WERE ORIGINALLY SET FOR 20 YEARS, IS THAT CORRECT?

[00:25:01]

BUT WE CAN PROVIDE THAT INFORMATION TO YOU.

I THINK IT WAS MEANT TO MATCH THE LIFE OF THE BONDS, BUT I, I LIKE, I DON'T REMEMBER THE EXACT DATE.

IT'S SOMETHING IN THAT VICINITY COUNCILMAN, I JUST DON'T RECALL.

GOT IT.

JUST KIND OF GOING BASED OFF OF WHAT, UM, I FOUND ON THE CITY OF KYLE WEBSITE THAT IT WAS ORIGINALLY TERMINATING AFTER 20 YEARS ON 2037, BUT THEN GOT EXTENDED IN, UM, TO 2057.

SO JUST TRYING TO GET A LITTLE CLARIFICATION ON THAT.

AND THEN SECOND QUESTION, I KNOW THE BUDGET HAD ALREADY BEEN APPROVED PRIOR AND THAT THIS STARTS BACK DATED TO OCTOBER.

IS THERE ANY REASON WHY WE DIDN'T HAVE A T MEETING CLOSER TO THE APPROVAL OF THE ACTUAL BUDGET MEETING TO APPROVE THESE ITEMS AS WELL? SO TYPICALLY HOW WE HAVE DEALT WITH T'S BUDGETS IS THAT WE WAIT FOR THE COUNCIL TO APPROVE THE CITY'S OVERALL BUDGET.

'CAUSE AT THAT POINT, ANYTHING PRIOR TO THAT, THE TAX RATE HAS NOT BEEN SET OR ADOPTED.

SO WE DON'T KNOW THE TAX RATE AT THE SAME TIME COUNTIES PARTICIPATING WITH US, SO THEIR TAX RATE IS NOT SET BY THAT THAT TIME.

GOT IT.

SO WE WANNA BRING THE BUDGET TO THE TS BOARD WHEN THE TWO ENTITIES HAVE THEIR FORMAL TAX RATES ADOPTED.

AND LAST YEAR, IF I RECALL, UH, WE, AND THE SECOND REASON IS THAT THE BOARD DOES NOT HAVE A STANDING MEETING SCHEDULE MM-HMM .

SO WE HAVE TO GET EVERYBODY'S SCHEDULE TOGETHER.

LAST YEAR WE BROUGHT THIS ITEM, I BELIEVE IN MID-NOVEMBER.

SO IT'S ABOUT THAT TIME WE TRY TO BRING IT TO, TO BOARD.

DOES, BUT IF THE BOARD DESIRES THAT WE BRING THIS AS SOON AS THE CITY COUNCIL ADOPTS THE BUDGET, WE'LL BE HAPPY TO DO THAT.

YEAH.

JUST WANTED A LITTLE CLARIFICATION SINCE WE'RE NEW, NEW TO THE TOUR, TO THE TOUR BOARD.

ANYBODY ELSE? VEER? YEAH, WE'VE BEEN TALKING ABOUT THESE, UH, CIP PROJECTS FOR AS FAR AS COUNCIL GOES FOR A FULL YEAR NOW OR MORE.

AND I KNOW THAT WE HAVE, UM, WENT FORWARD ON SPECIFIC DESIGN PLANS FOR ROUNDABOUTS, BUT TO KIND OF GO OFF OF, UH, COUNCIL MEMBER ZAPATA, IF IF THESE THIS DOESN'T GO THROUGH, IT COULD PRETTY MUCH HALT A LOT OF THE PROJECTS THAT WE HAD ALREADY PUT IN PLACE WITH ALSO GETTING THE, UH, THE, THE PROPERTIES AND SO FORTH TO GETTING THESE AREAS ALL, UM, IMPROVED.

AND YOU KNOW, AS WITH EAST SIDE, UH, ROADS AS WELL AS THE WEST SIDE, YOU KNOW, THIS, THESE WERE IMPROVEMENTS THAT WE WERE LOOKING AT TRYING TO DO IN THESE AREAS.

AND SO IT'S SOMETHING TO CONSIDER WHEN WE MAKE THIS VOTE GOING FORWARD.

SO DOES ANYBODY HAVE ANY OTHER COMMENTS OR QUESTIONS FOR PEREZ ON THIS ITEM? OR DO WE HAVE ANY MOTIONS? I'D LIKE TO MAKE A MOTION TO APPROVE.

ALRIGHT.

A MOTION WAS MADE BY COUNCIL MEMBER MCKINNEY, SECOND BY COUNCIL MEMBER DR. HARRIS, DO YOU HAVE ANY OTHER DISCUSSIONS ON THE MOTION? OKAY.

I WOULD JUST SAY THAT IT'S, UH, YOU KNOW, IT KIND OF COMES DOWN TO WHETHER YOU FEEL LIKE THESE PROJECTS ARE IMPORTANT AND FOR ME, THE SAFETY ASPECTS OF, UH, OF ROUNDABOUTS ESPECIALLY, YOU KNOW, THAT STRETCH RIGHT THERE BY, UH, MIDDLE SCHOOL AND HIGH SCHOOL.

IT'S, IT'S IMPORTANT IN MY OPINION.

YEAH.

ROBERT, THERE I DO HAVE AN ANSWER TO COUNCIL MEMBER MENEZ QUESTION.

SURE.

I JUST WANTED TO MAKE SURE THAT I PROVIDED THAT IN APRIL OF 2023, THIS TERMS WAS EXTENDED THROUGH 2057.

OR UNTIL ALL COSTS HAVE BEEN PAID, WHICHEVER COMES FIRST.

ANYBODY ELSE? OKAY, THOSE IN FAVOR SAY AYE.

AYE.

THOSE OPPOSED? AYE.

THOSE OPPOSED? OKAY.

MOTION THOSE, UH, MOTION PASSES SEVEN TO ONE ON AGENDA ITEM NUMBER TWO.

[3) Consider approval of a resolution authorizing the expenditure of $1,365,349.70 with a 5% contingency of $68,267.49 for a total contract amount of $1,433,617.19 for Task Order 1 with Texas Dry Utilities LLC for the PEC relocation on the Kohlers Crossing Roundabouts project.]

AGENDA ITEM NUMBER THREE WOULD BE CONSIDERED PROOF OF A RESOLUTION AUTHORIZING THE EXPENDITURE OF 1 MILLION 365 340 9,000 FOR, WITH THE 5% CONTINGENCY OF 68 MILLION.

IT LOOKS RIGHT.

NO.

68,000, UH, 246 FOR THE TOTAL CONTRACT AMOUNT OF 1 MILLION 433 617 FOR THE TASK ORDER.

ONE FOR THE, WITH THE TEXAS DRY UTILITIES LLC FOR THE PEC RELOCATION OF DAKOTAS CROSSING ROUNDABOUTS PROJECT AND THAT IS FOR PRESENTER MIKE TRIMBLE, DIRECTOR OF TRANSPORTATION AND PUBLIX WORKS.

SORRY, I NEED TO WEAR, WEAR MY GLASSES.

TURN IT OVER TO MY ASSIST DIRECTOR OF CIP AND PLANNING LOSING.

MIKE TRIMBLE, DIRECTOR OF TRANSPORTATION PUBLIC WORKS.

UM, TONIGHT WE'RE BRINGING FORWARD A TASK ORDER RELATED TO UTILITY RELOCATION FOR THE KOHLER CROSSING ROUNDABOUTS PROJECT.

UH, TO FURTHER GO INTO SOME OF THE BACKGROUND ON THIS PROJECT, AN OVERVIEW OF WHERE WE'RE AT WITH THE PROJECT, AS WELL AS THE SPECIFIC SCOPE OF THIS TASK ORDER.

I'M GONNA

[00:30:01]

THANKS, MIKE.

GOOD EVENING.

UM, SO FOR THIS, UH, ITEM, THIS IS THE START OF THE CONSTRUCTION PHASE FOR THIS, UM, PROJECT.

I'LL GO START WITH THE BACKGROUND.

SO BACK IN BACKGROUND, JUNE 4TH, 2024, THE BOARD APPROVED THE DEVELOPMENTAL PLAN SPECIFICATIONS AND ESTIMATES FOR THE KOHLER CROSSING ROUND THEABOUT, UM, CROMWELL BANNERS AND SANDERS.

THIS ALSO INCLUDES ALL THE, UM, IMPROVEMENTS IN BETWEEN THE ROUNDABOUTS.

SO ON THE SPENDING PLAN, YOU SEE THE ILLUMINATION THAT'S ALL THE LOCATION IN BETWEEN THOSE ROUNDABOUTS, UM, THAT ARE BEING IMPROVED.

ON JANUARY 15TH, 2025, THE BOARD AUTHORIZED THE RELOCATION OF OVERHEAD UTILITIES, UM, TO NOT EXCEED 1.6 MILLION LONG HAULERS CROSSING FROM 27 70 TO UM, FM 20, UH, 1626.

THERE WAS A DECISION MADE ON THAT DAY.

SO WE HAD AN OPTION TO RELOCATE ALL PEC FROM 27 70 TO 1626 AND THAT WOULD COST 2.6 MILLION.

AND THEN TERRA BOARD, UM, DECIDED TO DIAL BACK ON THE SCOPE TO ONLY UNDERGROUND FROM FM 27 70 TO CROMWELL, UM, DRIVE, UM, WHICH COST 1.6 MILLION.

UH, ON MARCH 4TH, 2025, COUNSEL APPROVED, UM, THE CITY MANAGER TO ENTER INTO AGREEMENT WITH PEC FOR THE RELOCATION OF THOSE OVERHEAD LINES FROM FM 27 70 TO CROMWELL.

AND RIGHT NOW WE FINISHED A HUNDRED PERCENT OF THE DESIGN.

AND BEFORE WE CAN GO OFF FOR BIDS FOR THE ROAD, WE NEED TO CLEAR UTILITIES.

AND ON SEPTEMBER 20, UH, 16TH, UH, THIS YEAR, COUNCIL APPROVING A MASTER SERVICE AGREEMENT WITH TEXAS DRY UTILITIES LLC FOR THE DRY UTILITY RELOCATION.

AND THIS TASK QUARTER, WE WILL WORK WITH THEM ON THOSE PC UM, UNDERGROUND THE INFRASTRUCTURES.

AND I DO WANNA EXPLAIN THAT THERE ARE, SO FOR THE PEC PORTION ON THE NEXT MAP, YOU'LL SEE THE PROJECT LIMITS, UM, A LITTLE BIT HARD TO READ IN WHITE.

UM, ON THE WEST SIDE IT STARTS AT 27 70 AND KOHLERS.

AND ON THE EAST SIDE, UM, THE CHROME LAWS RIGHT BEFORE THE HERO MEMORIAL PARK AND PUC IS GOING TO THE NORTH SIDE OF KOHLERS.

THERE ARE ALSO FOUR TELECOM COMPANIES, UM, BUT THEY'RE MOVING ON THEIR OWN EXPENSE AND THEY'RE ALL GOING TO BE MOVING TO THE SOUTH SIDE OF KOHLER'S.

WE ASK THEM TO MATCH OUR TIMELINE FOR THE UTILITY RELOCATION.

THIS CASE.

SO HERE'S A MORE UP TO DATE CONSTRUCTION SCHEDULE.

WE DO NOT HAVE THIS TASK ORDER'S CONSTRUCTION SCHEDULE ON THIS GRAPH.

HOWEVER, IF THE TASK ORDER GETS APPROVED TONIGHT, UM, WE ARE EXPECTING THEM TO START SOMETIME IN JANUARY AND EX.

THE LENGTH OF THE CONSTRUCTION FOR THE PEC RELOCATION IS BETWEEN, UM, 12 TO 19 MONTH, DEPENDING ON WHEN THEY ENCOUNTER THE ROCKS.

SO THE VERY FIRST ONE, WHEN YOU SEE THE 24 INCH WATER WATERLINE RELOCATION, THAT IS PART OF A DIFFERENT PROJECT.

THAT'S A CIP FOR THE 1626 GROUND STORAGE TANK AND ELEVATED STORAGE TANK PROJECT.

AND THAT PROJECT'S TAKING A WATERLINE ALL THE WAY UP, UM, ONTO KOHL EARTH OR ON THE NORTH SIDE.

AND IT'S GONNA GO OUT ALL THE WAY TO BANNER BECAUSE THEY'RE IN CONF UH, CONFLICT WITH OUR, UH, PROJECT.

SO WE'RE WORKING THEIR SCHEDULE INTO OUR SCHEDULE TO MAKE SURE WE RESOLVE THOSE CONFLICT WHEN WE GO INTO BANNER.

UM, AND THEN THE UTILITY RELOCATION, THIS IS ALL THE ADDITIONAL UTILITY.

SO WE EXPECT, UH, BETWEEN THIS TASK ORDER, THE PEC RELOCATION OF THE, AND THE TELECOMS THAT ARE GOING TO A DUCK BANK ON THE SOUTH SIDE OF KOHLERS TO BE FINISHED AROUND SUMMERTIME NEXT YEAR.

UM, AND THEN WE CAN BID OUT THE ROAD PORTION WHEN THE UTILITY'S ALL CLEARED.

UM, I DO WANNA MENTION THAT FOR THE ROAD, UH, OUR PHASING IS ONE SIDE AT A TIME WE'LL MAINTAIN TRAFFIC ON BOTH DIRECTIONS AND, UM, ALSO ONE ROUNDABOUT AT A TIME.

THAT'S WHERE YOU SEE THE RED, GREEN AND BLUE COLORS PHASED OUT LIKE THAT.

SO WE'RE EXPECT THIS WHOLE PROJECT TO BE FINALIZED AROUND OCTO OCTOBER, 2027, EXCUSE ME.

AND WITH THIS ITEM, UM, YOU HAVE TWO OPTIONS.

THE FIRST ONE IS TO PROOF A RESOLUTION AUTHORIZING AN EXPENDITURE OF ONE, UH, $1,365,349 70 CENTS WITH A 5% CONTINGENCY OF $68,267

[00:35:03]

AND 49 CENTS FOR A TOTAL CONTRACT AMOUNT OF $1,433,617 AND 19 CENTS FOR THE TASK ORDER.

NUMBER ONE WITH TEXAS TRIAL UTILITIES, LLC FOR UNDERGROUNDING OUT THE PDC RELOCATION.

AND I, I ALSO HAVE ANOTHER POINT TO MAKE WITH THIS.

SO THIS $1.4 MILLION, WE'RE ASKING FOR THIS TASK ORDER.

IF YOU REMEMBER PREVIOUS SLIDES, THIS IS INCLUDED IN THAT 1.6 MILLION FOR THE UTILITY RELOCATION.

AND ALSO A PORTION OF THIS IS REIMBURSABLE, UH, IS NOT REIMBURSABLE, EXCUSE ME.

SO PEC WILL PAY US BACK.

UM, WE'VE EXPLAINED THIS IN THE PREVIOUS FIRST BOARD MEETING WHERE IF PEC IS IN CONFLICT WITH OUR PROJECT, MEANING IF THEY'RE AT THE SANDERS BANNER OR CROMWELL LOCATION, THEY ARE PAYING TO GET OUT OF THE CONFLICT, BUT THE CITY IS PAYING FOR ADDITIONAL BETTERMENT.

SO THEY'RE PAYING, UM, FOR THEMSELVES TO MOVE FROM THEIR CURRENT LOCATION OUT OF THE CONFLICT, BUT THEY'RE NOT PAYING FOR THE UNDERGROUND PORTION OF IT.

SO OUR ENGINEERS STILL WORKING WITH THEM TO PORTION OUT THAT AMOUNT FOR THEM TO REIMBURSE US.

UM, AND THEN OPTION TWO, THERE'S IS, UM, DO NOT APPROVE THE RESOLUTION AND STAFF RECOMMEND APPROVE THE RESOLUTION.

I TAKE ANY QUESTIONS? ALL RIGHT.

DO WE HAVE ANY QUESTIONS ON THIS END FOR ING THAT? OKAY.

NOTE THEN ON THERE AGAIN, IT'S, UH, KEEPING THE BALL ROLLING ON THESE PROJECTS.

AND THEN WE'VE TALKED ABOUT THIS AGAIN, LIKE I SAID WITH OUR COUNCIL ABOUT GETTING THESE, UH, UH, CABLES, WIRES, UH, BURIED ON GROUND.

SO DO WE HAVE ANY MOTIONS? I'D LIKE TO MAKE A MOTION TO APPROVE SECOND THE ITEM.

WE HAVE A MOTION ON THE TABLE BY COUNCIL MEMBER DR. HARRIS, AND SECOND BY COUNCIL MEMBER MCKINNEY THAT WE APPROVE THIS ITEM.

DO WE HAVE ANY DISCUSSION? OKAY, THOSE IN FAVOR SAY AYE.

AYE.

THOSE OPPOSED A OKAY.

SEVEN ZERO ON THE, ON THIS END AND I BELIEVE THAT MIGHT BE THE LAST ONE FOR THE TERMS MEETING.

SO MAKE A MOTION TO ADJOURN.

ALRIGHT, WE ARE ADJOURNED WITH THE TERMS MEETING.