Rowlett council approves debt and policy resolutions, hears FY2025 budget and meter-replacement plan

Rowlett City Council on Aug. 19 received a third-quarter financial report and the city manager—s proposed fiscal year 2025 budget, approved a package of debt issuances and several policy resolutions, and authorized a vendor settlement to replace thousands of water meters.

The council heard that general-fund revenues for the quarter ending June 30 were about $116,000,000, roughly 4% above forecast, while expenses were about $98,000,000, about 3% below forecast, according to the finance presentation. The city manager, David Hall, described the FY2025 proposed budget as a balanced plan that includes 8.5 new positions, $1.3 million for public-safety pay adjustments, and a proposed maintenance and operations tax rate of approximately $0.53 per $100 of taxable value and an interest-and-sinking (I&S) rate near $0.23, for a combined ad valorem rate of about $0.76 to $0.77.

Council members authorized ordinances to issue the city—s planned 2024 debt instruments: general obligation refunding and improvement bonds, certificates of obligation and tax notes. Financial advisor Martie Hsu of Hilltop Securities said market pricing was favorable and reported a net present savings of about $1,478,000 from the refunding portion of the plan.

On the policy side, council members unanimously approved two resolutions to be submitted to the Texas Municipal League: one supporting legislation to curb institutional investors— large-scale purchases of single-family homes, and another urging restrictions on acquiring microelectronics or printed circuit boards made in China, Russia, North Korea or Iran for critical utility infrastructure.

Council also approved a proposed settlement and replacement agreement with Census USA after staff reported the city has roughly 2,778 meters that read as "0" and that Census identified 4,661 meters that have failed or are susceptible to failure. City Manager Christophe Bauer said Census will provide those meters and participate in installations; staff will provide limited field support and customer notification.

Other actions included approving a $170,000 task authorization for continued project management of Fire Station 5 and amending the solid-waste chapter of the city code to clarify contractor waste, container placement and bulk-waste rules. Several items were carried unanimously.

Votes at a glance - Consent agenda: approved unanimously (single motion). - Ordinance to abandon certain utility easements at 2030 & 2040 Rowlett Road: approved unanimously. - Task authorization for Fitzpatrick Design Construction Services (Fire Station 5): approved unanimously; $170,000. - Ordinances authorizing 2024 debt issuances (G.O. bonds, COs, tax notes): three separate motions approved unanimously. - Amendment and adoption of Chapter 50 (solid waste): approved unanimously with an amendment to cart placement times. - Resolution supporting TML action on institutional investors: approved unanimously. - Resolution on procuring microelectronics/PCBs from specified countries: approved unanimously. - Settlement/replace meters with Census USA: approved unanimously. - Resolution opposing NTMWD premium customer charge: approved unanimously.

What happens next The city set a public hearing on the tax rate and the proposed budget for Sept. 17 and will consider adoption on Sept. 18. Staff expects Census to start replacement work in September with an aim to complete by the end of the year, subject to field conditions.