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Nacogdoches council delays vote on fiscal 2024–25 budget as water-rate review continues
Summary
The Nacogdoches City Council unanimously voted to postpone final action on the proposed fiscal year 2024–25 budget until Sept. 17 after staff outlined staffing needs, a proposed 5.4–5.5% water and sewer rate increase and recommended waiting for a rate-study workshop.
The Nacogdoches City Council voted unanimously to postpone action on the proposed fiscal year 2024–25 budget until Sept. 17, answering council members’ questions about staffing costs and a pending water and sewer rate study.
Interim finance director Todd Simno summarized the city’s major funds — the general fund, utility fund and sanitation fund — and said the proposed budget meets the city charter requirement that operating revenues exceed operating expenses and a 25% minimum operating-cash policy. He told the council staff included a proposed water and sewer rate increase shown in materials as 5.5% but referenced elsewhere as 5.4%.
The discussion focused on staffing and the budget line for a chief-of-staff or equivalent position. A staff speaker identified in the meeting transcript as "Rick" explained the $200,000 figure in the budget is a "fully burdened" cost, meaning it includes salary plus benefits, TMRS, healthcare and FICA. "It's the cost that you budget is not the cost of salary," he said, describing the role as intended to improve oversight of capital projects and reduce single points of failure.
Residents also raised questions during the public-hearing portion. Nancy Niehaus asked about the reported $200,000 position and how committee budgets are allocated. Council members described recent internal promotions into finance and engineering roles and said hiring from within was part of their staffing strategy.
Council members and staff said the budget was built using the 5.4–5.5% rate increase as a baseline. Several members said it would be prudent to wait for the CNAC review and a rate-study workshop scheduled the next day before making the adoption final. "For financial transparency," Simno said, staff recommended postponement to allow time to adjust the budget if the rate study produced changes.
A council member moved to postpone the ordinance adopting the annual budget for the fiscal year beginning Oct. 1, 2024, until Sept. 17; another member seconded. The council voted in favor, and the mayor announced the motion carried unanimously.
The council also was reminded that a separate tax-rate hearing is scheduled next week. With the postponement, staff said they would return with any necessary modifications after the rate-study workshop and CNAC review.
The council adjourned after taking the postponement vote.
