Oct 07, 2025 City Council

THAT'S WHY WE GOT THE NAME ALTO.

[1. CALL TO ORDER.]

[00:00:03]

THANKS TO YOUR GRACE. AND DEAR GOD, LET US SEE AS YOU SEE, AND LET US LOVE AS YOU LOVE, AND LET US DO AS YOU DO.

GIVE US THE STRENGTH AND THE COURAGE TO FOLLOW.

WHERE? OH! CAN YOU HEAR ME NOW? OKAY. I'LL MAKE A MOTION THAT WE APPROVE THE CONSENT

[5. CONSENT AGENDA]

AND SECOND. ALL IN FAVOR.

AYE. MOTION CARRIES UNANIMOUSLY.

NEXT ITEM IS REGULAR AGENDA.

[6.A. Consider approval of an Ordinance of the City of Nacogdoches, Texas amending Chapter 82 – "Solid Waste", and Appendix A – "Master Fee Schedule", of the Nacogdoches Code of Ordinances relative to sanitation collection and disposal fees; providing a severability clause; providing a continuation clause; providing a repeal clause; and providing an effective date. (Executive Director of Development and Infrastructure) ]

PROVIDING A SEVERABILITY CLAUSE.

PROVIDING A CONTINUATION CLAUSE.

PROVIDING A REPEAL CLAUSE AND PROVIDING AN EFFECTIVE DATE.

MR.. MIKE. NEW.

YEAH.

GOOD EVENING, MAYOR AND COUNCIL. MY NEW EXECUTIVE DIRECTOR OF DEVELOPMENT AND INFRASTRUCTURE. THIS ITEM TONIGHT IS A CONTINUATION OF WHAT COUNCIL TABLED AT THE LAST MEETING, WE HAD SOME ADDITIONAL INFORMATION THAT WASN'T INITIALLY INCLUDED IN OUR REVISED RATES. I'LL COVER A LITTLE BIT OF THAT.

AND I'LL SPEED THROUGH THIS. THIS IS A LOT OF THE SAME INFORMATION, BUT I WANTED TO MAKE SURE WE'RE SHARING THAT EQUALLY IN THIS, SINCE THIS IS AN ACTION ITEM FOR THE COUNCIL TONIGHT. GOING BACK TO SOLID WASTE UTILITY RATES, THIS IS ONE OF THE LAST ITEMS ON OUR CONSULTANT'S AGENDA THAT HAD PROVIDED SOME BACKGROUND RESEARCH AND SOME RECOMMENDATIONS ON RATE CHANGES FOR OUR WATER AND SEWER RATES, WHICH WE'VE ACCOMPLISHED. THESE SOLID WASTE UTILITY RATES, WE'RE LOOKING TO APPLY THAT CHANGE TO THIS FISCAL YEAR.

WE'RE IN. JUST AS A REMINDER FOR THIS BUDGET YEAR, THIS WOULD BE THE SECOND RATE CHANGE FOR WATER AND SEWER RATES.

THOSE WILL BE IMPLEMENTED AS COUNCIL HAS APPROVED.

I THINK ABOUT THIS TIME LAST YEAR AND OUR CAPITAL NEEDS ADVISORY COMMITTEE DID REVIEW THIS BACK IN JANUARY AND RECOMMENDED THAT THE PROPOSED RATE CHANGES BY OUR CONSULTANT WERE APPROPRIATE AND THAT WE CONSIDER DOING THOSE AS, AS QUICKLY AS POSSIBLE.

THAT BEING THIS NEW FISCAL YEAR 2026.

SO WHAT CHANGES ARE WE TALKING ABOUT? A LITTLE BIT OF ADJUSTMENT WHERE WE MAKE THE LARGEST CHANGE, WHICH IS ABOUT 4% FOR OUR MONTHLY RESIDENTIAL RATES AND TAPER THAT DOWN TO ABOUT 3% FOR THE LAST THREE YEARS ALL INCREASES,

[00:05:02]

JUST TO TO SMOOTH OUT THOSE INCREASES AND SPAN THE BASICALLY THE INCREASES WE NEED TO COVER OUR ANTICIPATED CAPITAL COSTS AND FLEET COSTS, WHICH I'LL COVER IN JUST A MINUTE. OVER THESE NEXT 4 OR 5 YEARS, THIS IS TYPICAL OF ENTERPRISE FUNDS.

WE, WE DO THIS WITH WATER AND SEWER ON A REGULAR BASIS AND WE'RE DOING THIS WITH SOLID WASTE AND SANITATION. I CAN'T REMEMBER AND MAYBE CASE CAN REMIND ME.

IT'S BEEN A WHILE SINCE WE HAD LOOKED AT THESE.

I THINK 2018 WAS THE LAST TIME WE MADE THOSE CHANGES.

SO WE ARE ABOUT ON SCHEDULE TO REVIEW RATE CHANGES BASED ON THE NEEDS OF OUR LANDFILL AND OUR SOLID WASTE COLLECTIONS.

HERE'S IN THE DISPOSAL RATES.

HERE'S WHERE WE MADE SOME ADJUSTMENTS FROM LAST MEETING TO MAKE SURE WE INCLUDED ADDITIONAL RATES THAT WERE NOT CHANGED IN WHAT WE HAD PROPOSED.

THIS WAS, AND WE DID GET CONFIRMATION FROM THE CONSULTANT.

THIS WAS ACTUALLY PART OF THE RATE CHANGES THEY RECOMMENDED. THOSE NUMBERS WEREN'T INCLUDED IN THE NUMBERS YOU HAD LOOKED AT BEFORE.

SO WHAT IS ATTACHED TO THE AGENDA SHOWS THE HIGHLIGHTED NUMBERS.

I THINK I SHARED THAT HARD COPY WITH YOU PREVIOUSLY.

THAT IS WHAT IS INCLUDED IN PART OF THE PROPOSAL TONIGHT.

ALL REFLECTIVE OF AND THIS IS A GOOD CHART TO SHOW ALL REFLECTIVE OF THOSE INCREMENTAL CHANGES FROM 9% THIS FISCAL YEAR, 5% 27, AND THEN THREE AND 28 AND 29.

WHAT DOES THAT COVER? THESE REVENUE REQUIREMENTS WILL COVER OUR ANTICIPATED EXPENDITURES NOT ONLY FOR REGULAR OPERATIONS AND MAINTENANCE, ANTICIPATED INCREASES IN THOSE, BUT ROLLING STOCK PURCHASES, MAJOR CAPITAL IMPROVEMENTS AT THE LANDFILL. YOU'VE ALREADY LOOKED AT A COUPLE OF THOSE IN OUR PERMIT AMENDMENTS, TRYING TO EXPAND OUR FOOTPRINT AT THE LANDFILL TO COVER ADDITIONAL YEARS OF CAPACITY.

WE'RE HOPING TO GO EVEN LARGER WITH THAT AND AND POTENTIALLY SAVE A GOOD CHUNK OF DOLLARS BY MAKING SOME CHANGES, WHICH WERE STILL IN THE VERY EARLY PHASES OF EVALUATING TO ADD MORE FOOTPRINT AND AIR, BASICALLY AIR GAP CAPACITY TO THE LANDFILL SPACE. THIS WILL ALLOW US TO DO THAT.

AND THIS DOES COVER OUR COST TO POTENTIALLY COVER THOSE ADDITIONAL EXPENDITURES THAT WE'RE ANTICIPATING. WHAT DOES ALL THAT MEAN? THE NEW RATES FOR THIS FISCAL YEAR WOULD GENERATE AN ADDITIONAL $300,000.

HERE'S A SIMPLE CHART THAT NGUYEN HAD SHARED AT THE TIME THEY PRESENTED BACK IN APRIL, JUST SHOWING THAT WITH THESE ANTICIPATED RATE CHANGES, WE WILL GET CLOSER TO COVERING OUR COSTS ALMOST EVENLY.

AND THEN EVEN A LITTLE BIT.

ADDITIONALLY, IN 2029, WE'LL REEVALUATE AT THAT TIME, IF NOT SOONER, BASED ON OTHER CHANGES AND ANYTHING ELSE THAT WE ANTICIPATE MIGHT HAPPEN WITH THE LANDFILL OR WITH SOLID WASTE COLLECTIONS.

WE DON'T KNOW WHAT WILL CHANGE BETWEEN NOW AND 3 OR 4 YEARS FROM NOW.

WE'RE ANTICIPATING WHAT IT MIGHT BE, BUT WE'LL ALWAYS LOOK TO EVALUATE THIS IF WE HAVE ANY MAJOR CHANGES.

WHAT DO THESE UPDATED FEES INCLUDE? RESIDENTIAL AND COMMERCIAL COLLECTION RATES. OF COURSE. FRONT LOAD. DUMPSTER SERVICE. ROLL OFF DUMPSTER. WHAT WAS NOT INCLUDED AT THE LAST MEETING? SPECIAL WASTE COLLECTION AND LANDFILL DISPOSAL.

IT WAS IMPORTANT FOR US TO MAKE SURE THOSE ARE INCLUDED.

THAT IS A BIG CHUNK OF POTENTIAL REVENUE COLLECTED AT THE LANDFILL SITE.

NOT NECESSARILY BORROWED TRUCKS PICKING UP CANS ALONG THE ROAD, BUT IF APPROVED, WE WON'T IMPLEMENT THESE CHANGES UNTIL NOVEMBER 1ST.

WE DO HAVE TO GO THROUGH A POST ACTION NOTIFICATION PROCESS.

WE'LL DO THAT LATER THIS MONTH AS SOON AS WE CAN, AND THEN TRY TO BASICALLY JUMP INTO THAT BILL CYCLE STARTING NOVEMBER 1ST.

MAKE A CLEAN BREAK ON THAT AND NOT TRY TO BLEND IN.

PREVIOUS BILL CYCLES OR ANYTHING LIKE THAT.

IT'S SOMETHING WE HAD CONSIDERED, BUT, BUT REALLY, IF WE JUST START ON NOVEMBER 1ST, WE'LL WORRY ABOUT THE HEADACHE ON MAKING SURE THE BILLS ARE RIGHT TO DO THAT AND MOVE FORWARD FROM THERE.

ONCE THIS IS APPROVED, WE WILL IMPLEMENT THESE RATE CHANGES.

THE NEXT RATE CHANGE WOULD OCCUR ON OCTOBER 1ST TO MEET THAT SCHEDULE IN OUR FISCAL YEAR.

AND THAT'S ALL I HAD. OKAY.

ANY DISCUSSION? I JUST HAVE ONE QUESTION.

HOW IS THE UNIVERSITY PART OF ALL THESE FEE SCHEDULES OR HOW IS THE UNIVERSITY? I DIDN'T MEAN TO JUST I NO CASE.

NO. SO I DON'T THINK NECESSARILY THERE AND THEY ARE INCLUDED ON SOME THINGS.

LIKE WITH THE CONSTRUCTION THEY'RE DOING, THEY WOULD BE PAYING A ROLL OFF COST TO OUR LANDFILL. SO THERE ARE SOME CHARGES THAT THE UNIVERSITY PARTICIPATES IN OUR COLLECTIONS.

I THINK WE DO PICK UP SOME SERVICES IN DUMPSTER COLLECTIONS ON AND AROUND CAMPUS.

BUT ONE FOR ONE AS, AS ANY OTHER CUSTOMER, THEY'RE A LITTLE BIT DIFFERENT OF A CUSTOMER IN TOWN FOR US. I DON'T KNOW ALL THE SPECIFICS OF THAT, BUT THEY DO. IT'S NOT LIKE THEY HAVE THEIR OWN SOLID WASTE COLLECTIONS.

[00:10:04]

NO. THANK YOU. SO WHAT'S THE PERCENTAGE OF INTER-DEPARTMENTAL TRANSFERS FROM UTILITY OVER TO JUST REGULAR GOVERNMENT? DO YOU KNOW THAT? I DON'T HAVE THAT OFF OF MY HEAD.

YOU'RE TALKING ABOUT JUST FOR SANITATION OR JUST FOR ALL OF UTILITIES WE KEEP RAISING.

BUT AREN'T WE USING THAT TO PAY FOR OTHER PARTS OF OUR GOVERNMENT? WELL, SO IT'S BECAUSE THESE BECAUSE WE HAVE STAFF THAT ARE PERSONNEL AND I'M SPEAKING FOR FINANCE HERE, THEY'RE NOT PRESENT, BUT WE DO HAVE PERSONNEL THAT THOSE COSTS ARE PAID THROUGH OUR GENERAL FUND TO ALL EMPLOYEES.

THE INTERFUND TRANSFERS RECOUP THAT COST BECAUSE OF SOME OF THE WORK THAT'S DONE IS COMMITTED TO SERVING THE ENTERPRISE FUND.

OPERATIONS AND MANAGEMENT, IF THAT MAKES SENSE.

SO STAFF THAT DO PROVIDE THAT, THOSE TRANSFERS END UP REIMBURSING THAT COST.

IF THAT MAKES SENSE. THERE'S PROBABLY SOME OTHER THINGS WHICH OUR FINANCE FOLKS CAN PROBABLY EXPLAIN A LITTLE BIT BETTER, BUT THOSE TRANSFERS ESSENTIALLY COVER THOSE COSTS THAT SIMPLY BY MEANS OF ACCOUNTING COME OUT OF THE GENERAL FUND.

SO WE'RE REIMBURSING THOSE FUNDS TO PROVIDE THOSE COSTS IN THAT PARTICULAR CATEGORY.

DO THEY BREAK THAT DOWN? WE WE DO HAVE THAT BROKEN DOWN.

OKAY. WE DO. I THINK YOU'LL SEE SOME OF THAT IN OUR CURRENT ADOPTED BUDGET THAT'S AVAILABLE ON OUR WEBSITE.

OKAY. THANKS. ANY OTHER QUESTIONS? COUNCIL? ANY OTHER QUESTIONS? I'LL ENTERTAIN A MOTION.

PUBLIC SPEAKING. YOU HAVE TO SIGN UP.

YOU HAVE TO SIGN UP. OKAY, I'M JUST ASKING.

HE JUST LOOKED LIKE HE WAS OKAY.

ANY OTHER QUESTIONS? ANYBODY WANT TO MAKE A MOTION? I WILL. I'LL MAKE A MOTION THAT WE APPROVE THE ORDINANCE OF THE CITY OF NACOGDOCHES AMENDING CHAPTER 82 AS WRITTEN.

YES, SIR. YOU HAVE TO SIGN UP, SAMI, PRIOR TO THE MEETING.

WE'VE CHANGED. WE'VE CHANGED THE THE STRUCTURE.

ABOUT A YEAR AGO, IF YOU WANTED TO SPEAK, JUST COME ON UP HERE.

JUST JUST COME ON. AND YOU.

WE. YOU'RE ALLOWED THREE MINUTES.

I THINK THIS IS WORKING. WELL, I WE CAN HEAR YOU.

OKAY. YEAH. I'LL TRY TO KEEP IT OPEN.

NUMBER ONE, I'M NOT AGAINST THE INCREASE FOR SANITATION, BUT LET ME SHOW YOU SOMETHING. EVERYBODY IN HERE GETS ONE OF THESE.

I GET TWO OF THEM BECAUSE I'VE GOT AN IRRIGATION SYSTEM.

GUESS WHAT? MINE WAS LAST MONTH.

$470.41. IT HAS BEEN IN THE PAST OVER $500, INCREASING FEES, INCREASING FEES, AND I WANT TO MAINTAIN MY YARD AND KEEP MY AZALEAS ALIVE.

BUT IT'S SUMMERTIME, JULY TO AUGUST.

OKAY, NOW I WANT TO COMMENT ON THE THE SANITATION PIECE.

LAST YEAR. THE BUDGET FOR SANITATION WAS $8,204,900.

THE BUDGET INCLUDED FOR LAST YEAR AN IT AND INTER-DEPARTMENTAL TRANSFER OF $2,564,960.

THAT'S 31% OF THE REVENUE.

THE SANITATION FUND WAS TRANSFERRED TO THE GENERAL FUND THIS YEAR IN OCTOBER.

ONE WEEK AGO, REVENUE WAS BUDGETED AT 08,862,000, WITH AN ID OF $4, WHICH IS 34% OF REVENUE.

NOW, HERE'S TWO FIGURES. IF Y'ALL GOT SOME PENCILS AND YOU'D LIKE TO WRITE THESE DOWN AND MAKE A COMPUTATION WHEN YOU GET HOME IN THE BUDGET, THAT'S A $657,100 INCREASE IN REVENUE FOR THE SANITATION FUND.

IT'S A $421,284 INCREASE IN INTER-DEPARTMENTAL TRANSFER.

TO PROVIDE THAT, 64% OF THE NEW REVENUE IN THE TRANSPORTATION FUND IS NOT IN THE.

I'M SORRY, THE SANITATION FUND IS NOT GOING TO THE SANITATION FUND FOR THE INTER-DEPARTMENTAL TRANSFER TO THE GENERAL FUND.

THAT DOESN'T MAKE ANY SENSE TO ME.

YOU'RE PASSING A FEE INCREASE, WHICH IS GOING TO BE PART OF THE $657,100 INCREASE IN REVENUE. BUT AT THE SAME TIME, THE BUDGET'S GOT A $421,284 INCREASE IN

[00:15:05]

I NEED TO TRANSFER TO THE GENERAL FUND FROM PROPRIETARY FUNDS.

THIS YEAR IN THE BUDGET INCREASE, $1,238,557 COMPARED TO LAST YEAR.

IF WE GO BACK AND COMPARE IT TO 2024 WITH A 28% INCREASE IN JUST TWO YEARS.

THE TRANSFER BUDGET FOR 2026 AND 23% OF THE GENERAL FUND REVENUE.

AND WE'RE DOING THIS BEFORE THE TEXAS MUNICIPAL LEAGUE.

THE PML SAYS 7% OUGHT TO BE A REASONABLE TRANSFER.

WE'RE DOING 23% MORE THAN THREE TIMES WHAT THE TEXAS MR. DID. IT'S THE ONLY WAY TO MEASURE REASONABLE IS TO TRANSFER PERCENT OF REVENUE.

THE TEXAS SUPREME COURT AND THE SAN ANTONIO ISD VERSUS CITY OF SAN ANTONIO DEFINE A REASONABLE INCREASE OR A REASONABLE WITHDRAWAL IN INTER-DEPARTMENTAL TRANSFER OF 14%. CITY OF AUSTIN IS A GOOD EXAMPLE.

THEY SAID THEIR. THE CITY COUNCIL.

YOU GUYS WERE IN THE CITY OF AUSTIN SET THE RATE THAT THEY CAN.

IT DOESN'T DEPEND ON THE CITY MANAGER, DOESN'T DEPEND ON THE FINANCE PERSON.

THE COUNCIL DECIDES AND.

AUSTIN. IT'S 8.2% OF OUR UTILITY IS WHAT OURS IS 24%, THREE TIMES WHAT IT IS.

BY OUR CITY COUNCIL. IT'S A REAL PROBLEM THAT I GOT.

BUDGET FOR CITY HALL. IF YOU LOOK AT THE BUDGET BROKEN DOWN IN THE GENERAL FUND BETWEEN GENERAL OPERATIONS, POLICE, FIRE, PUBLIC SAFETY PARKS AND REC LIBRARY, ETC.. ONE FOR GENERAL OPERATIONS, WHICH IS THE CITY HALL.

THE BUDGET IS $8,390,687 TO RUN IN THIS HOUSE RIGHT HERE.

THAT'S A 29% INCREASE.

THREE YEARS AGO. BUDGET FOR IDS WAS 7,000,678 187.

THERE'S TWO NUMBERS YOU CAN WRITE DOWN.

THE BUDGET FOR CITY HALL IS 8,000,003 9687.

THE BUDGET FOR INTER-DEPARTMENTAL TRANSFERS IS 7,678,187.

GUESS WHAT? INTER-DEPARTMENTAL TRANSFERS ARE FUNDING 92% OF CITY HALL.

NOW, I'VE HEARD BOTH TODD AND BERLIN BERLIN ADVOCATE.

WHAT WE'RE DOING IS ALLOCATING FIXED COSTS.

WE TAKE THE FIXED COST TO RUN THIS HOUSE RIGHT HERE AND ALLOCATE IT OUT TO THE OTHER ENTITIES. THEN ALLOCATE 92% OF THE CITY HALL IS APPLICABLE TO WATER, SEWER, SANITATION. GUYS THAT'S HILARIOUS.

THERE IS NO WAY Y'ALL THINK Y'ALL CAN THINK ABOUT THIS.

WHAT THEY'RE DOING IS ALLOCATING 92% OF THE COST OF RUNNING THIS HOUSE RIGHT HERE.

THEY'RE PUTTING ALL THE BURDEN ON 92% OF THE BURDEN ON WATER, SEWER AND SANITATION IS RIDICULOUS.

I DON'T THINK ANYBODY WITH COMMON SENSE COULD.

YOU DON'T EVEN HAVE TO STUDY ALLOCATION.

SAMI FIXED OVERHEAD ALLOCATION.

I GAVE YOU WAY OVER THREE MINUTES.

I SAID I'VE GIVEN YOU WAY OVER THREE MINUTES.

OVER THREE MINUTES? YEAH. OKAY, I GOT A SUGGESTION.

I WOULD LIKE YOU GUYS TO AT LEAST EXPLORE THE POSSIBILITY OF GETTING SOME OUTSIDE COUNSEL AS A CONSULTANT FOR THIS PROBLEM.

THANK YOU VERY MUCH. MOTION HAS BEEN MADE.

DO I HAVE A SECOND? SECOND, HAVE A MOTION.

AND SECOND. ALL IN FAVOR? AYE. ALL OPPOSED? MOTION CARRIES.

OKAY. THANK YOU, EVERYBODY, FOR COMING.

THAT CONCLUDES THIS AFTERNOON'S MEETING.

GOD BLESS THE GREAT CITY OF NACOGDOCHES, TEXAS.

* This transcript was compiled from uncorrected Closed Captioning.