Round Rock City Council Packet Briefing - August 20, 2024

The Round Rock City Council held a packet briefing on August 20, 2024, at 7:30 AM in the Council Chambers to review and discuss agenda items for the upcoming City Council meeting on August 22, 2024. The session covered staff briefings, appointments, resolutions, an update on utility rates, and a detailed budget and tax rate presentation. No formal votes were taken; all items are set for action at the August 22 meeting.

Consent Calendar

• Councilmember Ortega raised a question regarding consent item F2, but no further details were provided. The consent calendar was otherwise accepted without comment.

Discussion Items

• Appointments (G1-G4): The Council subcommittee (Mayor Pro Tem Stevens, Councilmembers Ortega and Flores) presented a slate of board appointments. The new process was praised. Specific appointments include: Audrey Simmons reappointed to the Civil Service Commission; Councilmember Montgomery appointed as citizen director of Brush Creek Regional Utility Authority (BCRUA); and confirmation of Brooks Bennett as the next City Manager, effective December 8, 2024, with contract negotiations authorized.
• Financial Policies (H1): Staff reviewed annual updates to financial policies. Changes include clarifying the additional bonds test language for the HOT, Type B, and Sports Center funds, and increasing the authorized purchases list cap from $200,000 to $350,000 (subject to a future ordinance change).
• Transportation Economic Development Corporation (H2): Resolution to authorize the creation of a project under the Type B corporation, previously approved by the board, for City Council ratification.
• BCRUA SWIFT Funding (H3): Authorization for the second drawdown ($31.5 million) of a $90.5 million state water infrastructure financing program loan for the deep water intake project. The city will use the funds in tranches to benefit from an 18% interest rate discount.
• FTA 5307 Grant (H4): Annual application for $1,129,796 in federal formula funds to support the transit program.
• Mays Street Gaps Property Acquisition (H5): Authorization to execute a real estate contract for $225,000 for the Mays Street Gaps project near Jeffrey Way.
• Interlocal Agreements with Georgetown (H6-H7): Two agreements for utility easements to allow Georgetown Electric to cross city water lines; no cost involved.
• Engineering Services for Water Line Replacement (H8): Contract with Waltz & Preets for $166,000 to design replacements of small-diameter galvanized water pipes (1.5-2 inch) in seven alley locations.
• Reuse Water Storage Tank Engineering (H9): Supplemental contract with BGE for $119,000 to re-package and re-bid construction of a 2-million-gallon tank at the wastewater treatment plant, timed with Bureau of Reclamation grant funding (25% match).
• Master Meter Contract Extension (H10): One-year extension of the water metering system contract with Master Meter/pro Solutions for $500,000, covering meter purchases and maintenance.
• BCRUA FY25 Budget (H11): Approval of Round Rock’s share of the utility authority budget, totaling $11.4 million (includes $8.8 million debt service and operational costs based on 6.5 million gallons per day flow).
• Eminent Domain Authorization (H12-H14): For three easements needed by Pedernales Electric Cooperative for a power line to the new pump station. Deadline for land acquisition is January 2025; resolution authorizes condemnation if necessary.
• Lease Agreement with Waste Specialties LLC (H15): 12-month lease allowing Republic Services (via subcontractor) to use a pole barn on the Birds Tract for dumpster painting. In return, Republic will provide and haul away roll-off dumpsters to clean up debris on the property at no cost to the city.
• Utility Rate Update (I1-I2): Presentation on proposed three-year rate adjustments for water, wastewater, and stormwater. Water: base rate increase of 5% per year; revised tier structure with a new fifth super tier for usage over 34,000 gallons per month; volume rates adjusted for conservation. Wastewater: base rate increase of 6% per year. Stormwater: immediate $2 increase for residential (from $4.75 to $6.75) with commercial stepped increases. The average combined utility bill (water, wastewater, stormwater, garbage/recycling) would rise from $101.76 to $107.30 in year one (3.9% increase), then 2% and 2.1% in subsequent years. Deposit waivers proposed for moving existing customers, out-of-town customers with good standing letters, residents 65+ in good standing, and returning military personnel.
• Budget and Tax Rate Update (I3, E1): City Manager Brooks Bennett and CFO Susan presented the FY2025 proposed budget ($169.2 million general fund) and tax rate. The proposed tax rate is 36.2 cents per $100 valuation, a 2.9-cent increase over the current 34.2 cents. This increase is driven by voter-approved bond programs (May 2023) and additional public safety personnel (10 police officers, 6 firefighters). The median home (valued at $376,188) would see an increase of about $8.95 per month (8.6% over the no-new-revenue rate). Several state-required publications were discussed, with emphasis on the 8.6% effective increase for the typical taxpayer. A social media campaign has generated 21,000 impressions. Public hearings on the budget and tax rate will occur on August 22, with final adoption scheduled for September 12.

Key Outcomes

• All agenda items are recommendations for approval at the August 22 City Council meeting. No votes were taken during the packet briefing.
• The utility rate ordinance and the budget/tax rate ordinances will be subject to public hearings on August 22, with second readings and final adoption on September 12.