Council approves $59 million loan pledge, multiple zoning and finance changes; denies utility rate request

Council members on October (meeting date recorded as October 2025 in the record) approved a series of funding, land‑use and policy actions, including authorizing the pledge of utility and tax revenues to secure a $59,000,000 Texas Water Development Board (TWDB) drinking water state revolving fund loan and beginning the certificates of obligation issuance process to facilitate project funding.

The pledge authorization passed unanimously, 7–0. The council also approved several plats and local ordinances and adopted new finance and revenue‑management policies. Separately, the council adopted a resolution opposing a rate increase filed by Encore Electric Delivery Company LLC and directed staff to file the city’s position with the applicable parties.

Why it matters: The council’s action on the TWDB loan clears a financing path for a major drinking‑water project and moves forward debt issuance that will fund capital work. The finance and reserve policies set citywide rules for revenue management and fund balance that affect budgeting and long‑term fiscal planning.

Key actions, outcomes and brief explanations

- Pledge and loan initiation (Item 19): The council authorized pledging water, sewer and ad valorem tax revenues as security for repayment of a $59,000,000 TWDB drinking water state revolving fund loan and authorized staff to initiate the issuance process for certificates of obligation to facilitate project funding. The motion carried 7–0. During discussion council members asked about current cost estimates and were told staff and the mayor pro tem had considered utility rates and the budget; staff said no additional water rate increase would be needed for this phase of the reverse‑osmosis project. (Transcript excerpt: item text announcing action and council motion.)

- Replat to remove easement (Item 20): The council held a public hearing and approved a replat of Lots 1–18 (recorded in plat volume 13, page 37, slab 1456 in Palo Pinto County) to remove a 50‑foot easement between Lots 9 and 10. Developer Mike Fincher spoke during the hearing, saying the easement was unnecessary because no drive‑through connection existed. Motion carried 7–0.

- Short form plat at Auto World (Item 21): The council approved a short form plat dividing a 6.971‑acre tract formerly described in the KPRR survey into two lots for Auto World Chevrolet, noting utilities are in place and no new entrances from U.S. 180 are proposed. Motion carried 7–0.

- Medical‑dispensary zoning (Item 22): The council held a public hearing on adding a definition and listing medical cannabis dispensaries as a permitted use in selected zoning districts. Planning & Zoning had recommended commercial, light‑industrial and Walters Park A. Several residents and council members discussed possible locations; multiple council members said they preferred staff to investigate siting closer to the hospital/medical area rather than on main commercial corridors. No ordinance was adopted at this meeting; staff were directed to research options and coordinate with the hospital and legal counsel on permissible local controls under state law.

- Encore Electric rate case resolution (Item 23): The council adopted a resolution denying a rate change application filed by Encore Electric Delivery Company LLC. City staff reported Encore’s application sought about a 12.3% increase in residential rates and a 51% increase for street‑lighting rates; the steering committee of cities served by Encore (roughly 170 member cities) recommended denial and asked member cities to adopt denials. Council voted 7–0 to adopt the resolution and staff said the signed resolution will be filed as the city’s official position. Staff also said legal fees for the case study are paid by the utility in the rate‑case process and that the city pays a nominal steering‑committee membership fee (under $1,500 annually).

- Library fines and master fee schedule (Items 24–25): The council approved an ordinance establishing the Boydston Public Library as a fine‑free library and updated the city’s master fee schedule to reflect elimination of late fees for library materials while retaining replacement and a $15 processing fee for lost items. Motion carried 7–0.

- Utilities disconnect/reconnect ordinance (Item 26): The council approved an ordinance amending Chapter 90 (Utilities) so that, when service is disconnected, customers are required to pay the past‑due amount (rather than past‑due plus the then‑current bill) to restore service; the change is intended to eliminate new promissory notes going forward and to reduce administrative overhead. Staff said about 200 accounts (roughly 5% of city accounts) were on promissory notes and existing promissory notes remain until paid in full. Motion carried 7–0.

- Revenue administration policy (Item 27): The council adopted a citywide revenue and revenue‑administration policy that formalizes principles including diversification of revenue sources, full‑cost recovery for user fees, conservative forecasting, prohibition on using one‑time revenue for ongoing expenses, and internal controls for cash handling and deposits. Motion carried 7–0.

- Fund balance and reserves policy (Item 28): The council adopted a fund balance and reserves policy that sets target reserves (general fund unassigned fund balance at 25% or three months of operating expenditures; water and sewer fund reserve at 25% with a 1.25x debt service coverage goal; airport fund target at two months/16.67%). The policy requires a plan if target levels are not met and describes allowable uses for excess fund balance (one‑time expenses, debt reduction, capital projects, or start‑up where multi‑year forecasts show break‑even). Motion carried 7–0.

Votes at a glance (council roll call recorded as unanimous where indicated)

- Item 19 (TWDB loan pledge / certificates of obligation): Motion carried 7–0. - Item 20 (Replat Lots 1–18; remove easement): Motion carried 7–0. - Item 21 (Short form plat — Auto World Chevrolet): Motion carried 7–0. - Item 23 (Resolution opposing Encore rate increase): Motion carried 7–0. - Item 24 (Ordinance — fine‑free library): Motion carried 7–0. - Item 25 (Master fee schedule update): Motion carried 7–0. - Item 26 (Ordinance — utility disconnect/reconnect parameters): Motion carried 7–0. - Item 27 (Resolution — revenue administration policy): Motion carried 7–0. - Item 28 (Resolution — fund balance and reserves policy): Motion carried 7–0.

What council asked staff to follow up on

Council requested staff return with more detailed cost and project‑budget estimates related to the TWDB loan and the RO project, research on precise zoning options and possible rezoning near the hospital for medical dispensaries (and consultation with the hospital’s board), and information about Parker County’s reported approval to site a county jail annex in Mineral Wells (process and zoning implications). Staff also said it will bring a forthcoming RFP item for parks improvements to a future agenda.

Sources and provenance

This article is based on the City of Mineral Wells meeting transcript (recorded as October 2025). Key agenda and motion text are recorded in the meeting transcript for Items 19–29.

Ending

With unanimous votes on the major fiscal and land‑use items, the council moved several long‑range finance and development actions forward and directed staff to refine siting and regulatory options for a medical‑cannabis dispensary and to provide additional project cost detail for the TWDB‑funded water project. The council also requested staff research and report back on the potential county jail annex siting and upcoming parks‑related RFPs.