[PAGE 1] Marcus Vajdos, Mayor Allen Carpenter, Mayor Pro Tem Steve Bass John Lisenby David Dominy Joy McCormack C:ST. l9SS SPRING VALLEY VILL A GE Notice is Hereby Given of a Special Meeting of the City Council City of Spl'ing Valley Village, Texas, 1025 Campbell Road, Spring Valley Village, Texas, in the Council Chambers, June 24, 2025, beginning at 5:00 PM. For the Purpose of Considering and Acting upon the Following Items of Business: A quorum of the Mayor and Council Members will be physically present. Some Council Members may participate by videoconference in accordance with the provisions of Section 551.127 of the Texas Government Code. The meeting agenda and agenda packet are posted online at www.springvalleytx.com. In accordance with Texas Government Code, Sec. 551.127, on a regular, non-emergency basis, Councilmember may attend and participate in a meeting remotely by video conference. Should such attendance transpire, a quorum of the Council will be physically present at the location noted above on this agenda. The video link to this meeting is: https://us02web.zoom.us/j/82880387845 The public toll-free dial-in numbers to participate in the telephonic meeting are l-346-248-7799 (Houston), l-253-215-8782 (US), and l-301-715-8592 (US); enter the Meeting ID: 828 8038 7845 and#. The public will be pern1itted to offer public comments telephonically as provided by the agenda and as permitted by the presiding officer during the meeting. A recording of the telephonic meeting will be made, and will be available to the public in accordance with the Open Meetings Act upon written request. 1. CALL THE ROLL AND ANNOUNCE A QUORUM IS PRESENT 2. NEW BUSINESS 2.1 DISCUSSION AND DIRECTION CONCERNING: Budget Policy Assumptions to Use in the Development of Fiscal Year 2025-2026 3. ADJOURNMENT Agenda items may not necessarily be considered in the order that they appear. With regard to any item, Council may take various actions, including but not limited to rescheduling an item in its entirety or for particular action at a future date or time. Page 1 of 17 [PAGE 2] Page 2 of 17 [PAGE 3] Spring Valley Village City Council Agenda Item Data Sheet MEETING DATE: June 24, 2025 SUBMITTING STAFF: Susan Thornhill, Assistant Treasurer SUBJECT: DISCUSSION AND DIRECTION CONCERNING: Budget Policy Assumptions to Use in the Development of Fiscal Year 2025-2026 BACKGROUND: This is the second budget meeting as we prepare for the 2025 - 2026 Fiscal Year. The first meeting, held in May, covered the proposed five-year capital improvement program. This meeting will focus on various funds that cover the day to day operations of the city, to include: • General fund • Capital Improvement Fund • Utility Fund Please see the attached memo which provides introductory details for our discussion. ATTACHMENTS: Memo - Fiscal Year 2025–2026 Budget Development Overview, 2025 Certified Estimate of Taxable Value from Harris County Appraisal District Dated April 30, 2025, 2026 Village Fire Department Budget Powerpoint Presentation FUNDING: Amount Account No. Additional Project No. Amount Account Available Appropriation Budgeted Description Required RECOMMENDATION: Discussion item only. Page 3 of 17 [PAGE 4] MEMORANDUM TO: Honorable Mayor and Members of City Council FRO M: Susan Thornhill, Assistant City Treasurer CC: John McDonald, City Administrator DATE : June 19, 2025 SUBJEC T: Fiscal Year 2025–2026 Budget Development Overview Introduction The purpose of this memorandum is to provide an executive summary of the Budget Development Overview for the City of Spring Valley for Fiscal Year 2025–2026. The proposed budget is balanced and reflects the City's continued commitment to high-quality services, public safety, infrastructure maintenance, and responsible financial management. 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%. This number will decrease as property tax challenges continue to be heard. o The projected value increase of Residential property is currently 6.43% with o Commercial at 1.40%. • Maintain the existing property tax rate of $0.39500. Use 99% collection rate to estimate property tax revenues. o • For Sales Tax and Municipal Court Revenues, revenues are based on 5-year trends in these areas. 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. Revenues Total General Fund revenues are projected to fully support proposed expenditures. Key revenue components include: Page 4 of 17 [PAGE 5] Expenditures The General Fund allocates resources to maintain essential services: Personnel • Implementation of Comp and Class Study 3% COLA for staff correctly in currently placed at market o • Group Health Insurance The current projected increase based on higher claims rate this past year will o necessitate going back out on the market. • TMRS Continued 2:1 match at 7%, with the previously discussed move to a 20-year plan. o 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 revue 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. A new program proposed for the coming year will be a holiday tree lighting event. Capital Replacement Fund The Capital Expenditures are supported by departmental transfers totaling $394,200 and the existing fund balance. Planned Capital Investments Fleet/Police • 2 Administration Vehicles ($131,050) • 1 Patrol Vehicle ($93,199) Equipment/Public Works • Bobcat Mini-Excavator ($50,000) Infrastructure • Network Switches ($23,625) Page 5 of 17 [PAGE 6] • Upgrade Wireless Access Points ($7,500) • Computer Replacement Program ($11,000) • System Upgrades and Cloud Migration ($84,300) • Dispatch stuff?? Capital Improvement Plan Construction Projects • Croes (East and West of Fries) • Merlin Ct. and Spring Oaks Circle In Design • Mickey Way Area (Asphalt and Drainage) • Wild Oak Circle, Echo Valley and Cavell St. • Public Works Building Utility Fund The proposed Utility Fund budget for FY 2025-2026 totals $3,652,927, a 5% increase over the FY 2024-2025 adopted budget of $3,452,484. This fund is supported primarily through user fees. Revenues Expenditures Funding will support: Salaries, benefits, and operations • Salary and benefits will mirror those of General Fund employees. Utility infrastructure maintenance Equipment replacement Conclusion The FY 2025–2026 Proposed Budget reflects the City’s ongoing fiscal discipline and dedication to preserving a high quality of life for residents. The budget maintains core services, supports infrastructure, and provides strategic investments to ensure the City's long-term sustainability. Page 6 of 17 [PAGE 7] Page 7 of 17 [PAGE 8] Page 8 of 17 [PAGE 9] Page 9 of 17 [PAGE 10] Village Fire Department FY 2026 Budget 901 Corbindale Road Houston, TX 77024 www.villagefire.org Page 10 of 17 [PAGE 11] 2026 Budget Goals To ensure the Maintain competitive pay and department has Provide better tools for Invest in training to develop Maintain EMS & Fire benefits packages for quality equipment accuracy, efficiency, & security skills and experience of all equipment/vehicles to provide employees and tools. throughout the department employees the best service Page 11 of 17 [PAGE 12] 2026 Proposed Budget Page 12 of 17 [PAGE 13] 2026 Proposed Budget Highlights General Fund – Capital • 20% increase from the 2025 budget • 2025 budget was a 24% decrease from 2024 • No major facility projects anticipated • Purchase replacement of EMS equipment needed • Routine replacement of protective gear (boots, helmets, gloves, hoods) • Routine replacement of radios • Routine replacement of apparatus computers Page 13 of 17 [PAGE 14] 2026 Proposed Budget Highlights General Fund – Personnel • Total 7% increase from 2025 Budget • Base Salary 3% increase • 457(b) contribution increase from 2% to 4% of base pay Page 14 of 17 [PAGE 15] 2026 Proposed Budget Highlights General Fund – Operating • 13.1% increase from 2025 Budget • Uniform replacement • Maintenance of equipment and station • Maintenance contract increases • Accounting services increased cost • Improvements to software/ERP for increased efficiency and accountability in Finance/Administration Page 15 of 17 [PAGE 16] 2026 Proposed Budget Capital Replacement • 2026 assessment reduction is due to the allocation of the 2026 EMS revenue contribution to the Fire Department. The 2026 budget is reduced by 200,000 from the 2025 budget. • Ladder Truck Vehicle replacement Page 16 of 17 [PAGE 17] 2026 Proposed Budget Total Cost to Cities Page 17 of 17