[PAGE 1] MINUTES OF THE CITY COUNCIL SPECIAL MEETING CITY OF SPRING VALLEY VILLAGE, TEXAS TUESDAY, JUNE 24, 2025 AT 5:00 PM IN THE COUNCIL CHAMBERS OF CITY HALL 1025 CAMPBELL ROAD, HOUSTON, TEXAS 1. CALL THE ROLL AND ANNOUNCE A QUORUM IS PRESENT With a quorum of the Council Members present, the Special Called Meeting of the Spring Valley Village City Council was called to order by Mayor Pro-Tem Carpenter at 5:03 p.m. Members Present: Mayor Marcus Vajdos Mayor Pro-Tem Allen Carpenter Council Member Steve Bass Council Member David Dominy Council Member John Lisenby Members Absent: Council Member Joy McCormack 2. NEW BUSINESS 2.1 DISCUSSION AND DIRECTION CONCERNING: Budget Policy Assumptions to Use in the Development of Fiscal Year 2025-2026 City Administrator John McDonald opened the discussion regarding the development of the upcoming Fiscal Year 2025-2026 budget. The focus of this meeting is to focus on the funds that cover the day-to-day operations, such as the City's General Fund, Capital Improvement Fund, and the Utility Fund, while keeping in mind that the ultimate goal is to the commitment to high- quality services in public safety, infrastructure maintenance, and responsible financial management. The Budget Police Assumptions are: Budget Policy Assumptions Projecting Revenues •Use a conservative approach to forecast revenues to include trend analysis and consider factors that may not be reflected in data yet due to what is happening in the current economy. •Property Tax: 2025 projected property values show an estimated overall increase of 5.79%. oThis number will decrease as property tax challenges continue to be heard. oThe projected value increase of residential property is currently 6.43% and Commercial at 1.40% •Maintain and budget the existing property tax rate of $0.39500. oUse a 99% collection rate to estimate property tax revenues. General Fund Overview The proposed General Fund budget for FY 2025–2026 totals $10,675,550, a 1% increase over the FY 2024–2025 adopted budget of $10,580,389. [PAGE 2] Revenues Total General Fund revenues are projected to support proposed expenditures, which include: Property Taxes Franchise Fees and Permits Intergovernmental Revenue Interest Income and Misc Revenue Municipal Court Revenues Expenditures The General Fund allocates resources to maintain essential services: Personnel •Implementation of Comp and Class Study - which is a 7% overall cost o3% COLA for staff correctly placed at market •Group Health Insurance oThe current projected increase based on the higher claims rate this past year will necessitate going back out on the market. •TMRS oContinued 2:1 match at 7%, with the previously discussed move to a 20-year plan. Resources for Departments •Mayor and Council •Administration •Municipal Court •Police •Streets Fire Department Contribution •This year’s contribution is $1,720,518, a 5.08% increase over last year. Contracted Services •Solid waste •Permit review and inspections •Computer Services (Software, Maintenance) •Insurance (Liability, Property, Surety Bonds, Vehicle) •Legal Notices •Professional Services (Audit, Legal, Tax Assessor, Harris County Appraisal District) Parks and Community Events •Continue with the Music in the Park and Movies in the Park programs, including a new tree-lighting event. Capital Replacement Fund The Capital Expenditures are supported by departmental transfers totaling $394,200 and the existing fund balance to aid in the purchase of IT equipment or large purchases for a department. Planned Capital Investments Fleet/Police •2 Administration Vehicles ($131,050)