On the agenda: Groves Minutes — Flock camera (Aug 17)

SPECIAL MEETING AUGUST 17, 2026

A special meeting of the City of Groves City Council was held on August 17, 2026, at
5:00 p.m. in the Groves City Council Chamber with Mayor Chris Borne, Mayor Pro
Tem Rae Shauna Gay, Councilmember Mark McAdams, Councilmember Charles
Chelette, and Councilmember Brandon Holmes in attendance. Mayor Borne called
the meeting to order and welcomed the attendees and news media. Councilmember
McAdams then led the prayer and the Pledge of Allegiance.

Mayor Borne asked for reports, and there were none.

Mayor Borne then asked for citizen comment, and Robyn Masters of 7061 Henry
stated that she wants the Council to vote no for the tax increase.

City Council entered into the Public Hearing at 5:08 p.m.

CONDUCT A PUBLIC HEARING AT GROVES CITY HALL FOR THE PURPOSE OF
REVIEWING THE PROPOSED TAX INCREASE IN THE FY 2026-2027 BUDGET:
Mayor Borne read the notice as follows: “Notice of a public hearing on tax increase.

A tax rate of $0.643678 per $100 valuation has been proposed by the governing body
of the City of Groves.

PROPOSED TAX RATE $0.643678 per $100
NO-NEW-REVENUE TAX RATE $0.603246 per $100
VOTER-APPROVAL TAX RATE $0.627319 per $100
DE MINIMIS RATE $0.643679 per $100

“The no-new-revenue tax rate is the tax rate for the 2026 tax year that will raise the
same amount of property tax revenue for City of Groves from the same properties in
both the 2025 tax year and the 2026 tax year.

“The voter-approval rate is the highest tax rate that City of Groves may adopt without
holding an election to seek voter approval of the rate, unless the de minimis rate for
City of Groves exceeds the voter-approval rate for City of Groves.

“The de minimis rate is the rate equal to the sum of the. no-new-revenue maintenance
and operations rate for City of Groves, the rate that will raise $500,000, and the
current debt rate for City of Groves.

“The proposed tax rate is greater than the no-new-revenue tax rate. This means that
City of Groves is proposing to increase property taxes for the 2026 tax year.

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August 17, 2026
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“A PUBLIC HEARING ON THE PROPOSED TAX RATE WILL BE HELD ON august_|
17, 2026 AT 5:00 PM AT the Groves City Hall, 3947 Lincoln Ave, Groves, TX 77619.

“The proposed tax rate is greater than the voter-approval tax rate but not greater than
the de minimis rate and does not exceed the rate that allows voters to petition for an
election under Section 26.075, Tax Code. If the City of Groves adopts the proposed
tax rate, the City of Groves is not required to hold an election so that voters may
accept or reject the proposed tax rate, and the qualified voters of the City of Groves
may not petition the City of Groves to require an election to be held to determine
whether to reduce the proposed tax rate.

YOUR TAXES OWED UNDER ANY OF THE RATES MENTIONED ABOVE CAN BE
CALCULATED AS FOLLOWS:

Property tax amount = (tax rate) x (taxable value of your property) /100

FOR the proposal: Chris Borne Mark McAdams
Brandon Holmes Charles Chelette
Rae Shauna Gay 7]

AGAINST the proposal: None
PRESENT and not voting: None
ABSENT: None.”

Mayor Borne asked for questions from the Council, and Councilmember Chelette
asked whether the new budget includes health insurance; Finance Director Lamar
Ozley stated that it does, including the new health insurance numbers passed at the
last meeting. Mayor Borne stated that the total tax levy on all properties is an
increase of $511,048, and the de minimis rate is supposed to be less than $500,000;
can you explain why it is over that? Mr. Ozley stated that the $511,048 also includes
new property values. Mayor Borne asked if we have the amouni of the new property
values, and Mr. Ozley stated it is $79,302; the offset is that the INS rate is actually
lower. There were no further questions from the Council.

Mayor Borne then asked for citizens who wished to speak in support of the request,
and none did. [|

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August 17, 2026
Page 3

Mayor Borne then asked for citizens who wish to speak against the request, and
Robyn Masters of 7061 Henry stated that she and her neighbors are against the tax
increase. Ms. Masters then said she has never seen the City decrease the tax rate.
Mayor Borne stated that the City has to buy goods and services just like the citizens
do, and when those goods go up, how are we supposed to fund increases in fuel and
everything else? Ms. Masters then stated that the City has issues that are not being
addressed, but taxes continue to go up. Ms. Masters also stated that she did not get
a raise this year and does not agree with City employees receiving one. City
Manager Kevin Carruth stated that in the current fiscal year over half of the general
fund revenue comes from property tax and all but $50,000 goes to fund Fire and
Police, so if you're advocating reducing property tax, you are saying you want less
Fire and Police. Ms. Masters then stated she is not saying we should reduce
property taxes, but there should not be an increase, and the budget should also be
gone over line by line to make sure there is no waste. Mr. Carruth stated that
happens every year starting in February. Ms. Masters then stated that she listened to
the May 22"4 meeting, and they were proposing $15 million for drainage around Taft
School, and Mayor Borne stated that DD7 is doing that project and paying for it. Ms.
Masters then stated that this is about a $500,000-a-year increase in taxes for
citizens, and Mayor Borne stated that it is fair to say that in the years we did not take
maximum increases, the City fell behind and infrastructure started to fail. Now we
have no choice but to fix it, and to do that, we have to raise funds; our funds come
from taxpayers and services rendered.

Ms. Masters then asked when ditches will be dug out, and Mayor Borne stated that
they do dig ditches every year. Mayor Borne asked Mr. Foxworth if he had an update
on how much had been done this year, and Mr. Foxworth stated he did not have it
with him. Mayor Borne stated that the last report he saw was roughly 3,500 to 5,000
linear feet over the last few years, each year, and we are just under 2,000 linear feet
so far this year. Mayor Borne stated a few years back that the Council decided that
being able to flush toilets was the main concern, so we did not get penalized for that,
which is what the majority of the Certificate of Obligation is paying for, which is our
wastewater upgrades along with the water meter project, which will help save
potentially a little of $400,000 a year of water waste with the new meters.

Kristy Wells Holt, of 3722 Doyle Avenue, then stated that she is definitely for the
Police Department, but how much of the increase of our tax dollars is for Flock
cameras, and City Marshal Chris Robin stated that the Flock cameras were grant-
funded except for a 20% match, which is $14,000 per year. Ms. Holt asked how
many Flock cameras the City has, and Marshal Robin stated that the City has 14.

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Ms. Holt then asked how many we are getting, and Marshal Robin stated the J
maximum we get is 20. Ms. Holt then suggested that the City may give a 3% raise
and put some of that money towards drainage and ditches. Ms. Holt then asked if we
have new employees, and Mr. Carruth stated that this proposed budget reduces the
general fund full-time employees by 2.5. Mayor Borne then stated that this is a step
year for the employees, so it is built into the handbook. Mr. Carruth then stated that
across all funds, the personnel costs represent 64% of the budget, and what you are
talking about mixes different funds; property tax supports the general fund, and as
explained earlier, over half of that is property tax. In this year's budget, all but
$50,000 goes to fire and police, so if you eliminate all other general fund departments
such as streets, drainage, library, etc., and we do not increase property tax, you won't
be able to do anything. Ms. Holt then stated that she is not saying to do away with
the departments, and Mr. Carruth then stated that means you are wanting it both
ways. Ms. Holt stated they want stuff done to their streets and drainage, and Mr.
Carruth stated, but that takes money. Ms. Holt stated that is correct, but it is not
budgeted for 2026, and Mr. Carruth asked if she is aware of the Transportation Use
Fee, which is going into two studies so that the Council can make an educated
decision on what to do next.

Councilmember Holmes stated that he has spent a lot of time on the budget both
before he came on the Council and after. Mr. Holmes then stated that he stood at
that same podium and asked, if we are paying more for utilities and taxes, what are
we geiting as citizens for that? Mr. Holmes then stated, to the Mayor's point, that
what we are starting to get is a decent pay rate for the people out there serving us,
and we are also doing things like maintaining systems that have slowly been
degrading over time. A big part of our budget with this tax increase isn't investing in
something we necessarily see tomorrow, but in the next couple of years. If you look,
there is about $500,000 in street materials, and when the municipal cost index was
really low, we could pave a lot of feet of streets for that amount. Not that we don’t
have the equipment and people to do that; we have to hire outside people to get
caught up on our streets. Mr. Holmes then stated that it is on the back burner right
now because the focus is water, wastewater, and drainage. Mayor Borne then stated
that we don’t get fined for having a bad street, but we do get fined for having poor
water quality or a poor sewer system.

Kristi Mayea, of 4301 Harrison Avenue, stated that we have to stop spending more,
and if we don’t have the money, then let's not buy Flock Cameras. i

No other citizens wished to speak against the request.

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Mayor Borne then read “The City Council of Groves will vote on the proposed tax rate
today during the regularly scheduled meeting immediately following this public
hearing as listed on the respective agenda. This public hearing is closed at 5:35 p.m.”

DELIBERATE AND ACT ON ADOPTION OF FY 2026-2027 MAINTENANCE AND
OPERATIONS TAX RATE OF $0.606408 / $100 BY RECORD VOTE:
Councilmember Chelette made a motion to deliberate and act on adoption of FY
2026-2027 maintenance and operations tax rate of $0.606408 / $100 by record vote,
and Councilmember McAdams seconded. Finance Director Lamar Ozley stated that
this is the first step of passing the budget and tax rate. Mr. Ozley stated that we will
also be doing the interest and sinking fund, which will be combined with the
maintenance and operations tax rate to create the total tax rate, or de minimis rate.
Councilmember Holmes asked what the difference between those two is, and Mr.
Ozley stated there are two parts to the tax rate. M&O funds all day-to-day City
activities, and the INS pays the debt service on the bonds we have issued. Those
two parts are calculated differently, and certain rules govern how those rates are
calculated, as shown in the worksheet provided by the Tax Assessor Collector's
office. Mayor Borne asked whether this is the number used for the proposed budget,
and Mr. Ozley stated that it is correct. The motion passed with Mayor Chris Borne,
Councilmember Mark McAdams, Councilmember Charles Chelette, and
Councilmember Brandon Holmes all in favor of the motion. Mayor Pro Tem Rae
Shauna Gay voted against the motion.

DELIBERATE AND ACT ON ADOPTION OF FY 2026-2027 INTEREST AND
SINKING TAX RATE OF $0.037270 / $100 BY RECORD VOTE: Councilmember
Holmes made a motion to deliberate and act on adoption of FY 2026-2027 interest
and sinking tax rate of $0.037270 / $100 by record vote and Mayor Pro Tem Gay
seconded. Finance Director Lamar Ozley stated that this is the second half of the tax
tate dedicated to paying the debt service for the bonds the City has outstanding. This
tax rate does not pay for 100% of the bonds; it pays for the portion funded by the
general fund. EDC pays the fire station bond, and the water and sewer rates pay for
improvements to the wastewater plant and the water meters. Mayor Borne asked
when certain bonds roll off, then this tends to go down, and Mr. Ozley stated that is
correct. Mayor Borne then asked when that last happened, and Mr. Ozley stated it
will happen this year, which will be the final payment on one of our issues. There
were no further questions, and the motion passed unanimously, with Mayor Chris
Borne, Mayor Pro Tem Rae Shauna Gay, Councilmember Mark McAdams,
Councilmember Charles Chelette, and Councilmember Brandon Holmes all in favor.

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Page 6

DELIBERATE AND ACT ON ADOPTION OF FY 2026-2027 BUDGET BY recorDL|
VOTE: Mayor Pro Tem Gay made a motion to deliberate and act on adoption of FY
2026-2027 Budget by record vote, and Councilmember Chelette seconded.
Councilmember Cheletie stated that this is the adoption of the budget, and Mr. Ozley
stated that it is correct. There were no further questions, and the motion passed, with
Mayor Chris Borne, Councilmember Mark McAdams, Councilmember Charles
Chelette, and Councilmember Brandon Holmes in favor. Mayor Pro Tem Rae

Shauna Gay voted against the motion.

DELIBERATE AND ACT ON RATIFICATION OF PROPERTY TAX INCREASE
REFLECTED IN THE FY 2026-2027 BUDGET: Councilmember McAdams made a
motion to deliberate and act on ratification of the property tax increase reflected in the
FY 2026-2027 Budget, and Mayor Pro Tem Gay seconded. Finance Director Lamar
Ozley stated that local government code requires the Council to ratify what it just
vated on: the combined tax rate of $0.643678 / $100. No one asked questions, and
the motion passed with Mayor Borne, Councilmember McAdams, Councilmember
Chelette, and Councilmember Holmes all in favor. Mayor Pro Tem Gay voted against

the motion. [|

DELIBERATE AND ACT ON ADOPTION OF RESOLUTION 2026-17, APPROVING
THE INVESTMENT POLICY FOR THE CITY OF GROVES, TEXAS: Councilmember
Chelette made a motion to deliberate and act on adoption of Resolution 2026-17,
approving the Investment Policy for the City of Groves, Texas and Councilmember
McAdams seconded. Finance Director Lamar Ozley stated that the Public Funds
Investment Act requires the Council to review the Investment Policy that the City of
Groves has, which sets the limits on what the City can invest its cash in to maximize
the return on the investment of those funds while maintaining safety and security in
return as best as we can. The motion passed unanimously.

DELIBERATE AND ACT ON ORDINANCE 2026-13, TO AMEND THE WATER,
SEWER, AND SOLID WASTE RATE STRUCTURES: Councilmember Holmes made
a motion to deliberate and act on Ordinance 2026-13, to amend the water, sewer,

and solid waste rate structures, and Councilmember Chelette seconded. Finance
Director Lamar Ozley stated that the City engaged NewGen as a consultant to help
establish and adjust the water and sewer rates annually; they completed their review
for the upcoming year, and this was their recommendation. We are also increasing
the solid waste rates by the same percentage of 5.75%; we have not increased the []
solid waste rates in the last three years. Mayor Borne stated, just to clarify, that this
was actually lower than their initial proposed rate, which was 10%, and Mr. Ozley

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Page 7

stated that is correct. Mayor Borne asked Mr. Carruth what the average bill increases
are, and Mr. Carruth stated that, between water, sewer, and sanitation, the average

residential bill would increase by approximately $6.04. Councilmember Holmes
asked if we could put a notification of the increases on the water bills, and Mr.
Carruth stated we can. There was no further discussion and the motion passed
unanimously.

DELIBERATE AND ACT TO APPROVE AN ANNUAL APPROPRIATION
ORDINANCE 2026-14, OF THE CITY OF GROVES, TEXAS, FOR THE 2026-2027
FISCAL YEAR, APPROPRIATING FUNDS FOR DISBURSEMENT FOR THE
VARIOUS PURPOSES AND USES OF THE CITY, PROVIDING A SAVINGS
CLAUSE, AND PROVIDING AN EFFECTIVE DATE: Councilmember Chelette made
a motion to deliberate and act to approve an Annual Appropriation Ordinance 2026-
14, of the City of Groves, Texas, for the 2026-2027 fiscal year, appropriating funds for
disbursement for the various purposes and uses of the City, providing a savings
clause, and providing an effective date. Mayor Pro Tem Gay seconded. Mr. Ozley
stated that this ordinance is required by our City Charter; it breaks it out by each
general fund department as well as the solid waste fund, utility fund, sales tax fund,
and INS fund. Mayor Borne stated that this ordinance gives us the right to spend the
money, and Mr. Ozley stated the budget does per state law, but this is the charter
authorizing us. There was no further discussion, and the motion passed
unanimously.

DELIBERATE AND ACT ON ORDINANCE 2026-15, APPROVING THE TAX
, ASSESSMENT ROLLS FOR THE YEAR 2026, LEVYING AND ASSESSING TAXES
~ FOR THE SUPPORT OF THE CITY OF GROVES, AND THE MUNICIPAL

* > GOVERNMENT THEREOF; APPORTIONING EACH LEVY FOR SPECIFIC
io PURPOSES, EEVYING AND ASSESSING OCCUPATION TAXES AND A HOTEL

OCCURANCYTAX; PROVIDING THE DATE FOR THE COLLECTION OF TAXES;

2. “YPROVIDING:A-SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE:
“.,ouncilriembér Holmes moved that the property tax rate be increased by the
adoption: -of'a tax rate of $0.643678 / $100 which is effectively a 6.12 percent increase
in the tax rate and Councilmember Chelette seconded. Finance Director Lamar
Ozley stated that this is required by Tax Code Section 26.05 (b) and is the final step
in setting the budget and the tax rate. There were no questions, and the motion
passed, with Mayor Borne, Councilmember McAdams, Councilmember Chelette, and
Councilmember Holmes in favor. Mayor Pro Tem Gay voted against the motion.

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Page 8

Mayor Borne called for Councilmember comments, and Councilmember Chelette Lo
thanked the citizens for showing up tonight and said these decisions were not made
lightly. Things are getting costlier, which is why we have to make the increase,
especially with the age of our infrastructure. Councilmember McAdams agreed with
Councilmember Chelette and stated it is not an easy decision to make, especially
with no industry. Councilmember Holmes also thanked the citizens for showing up,
and if you are wondering where the money goes, there is a great presentation from
the budget workshop. Mayor Pro Tem Gay thanked everyone for coming and said
that she hopes they continue to show up and voice their opinions. Mayor Borne then
stated that this is a difficult time for all of us and that, with all of the 30-plus meetings
with the Council throughout the year, he often stares out and all he sees is City staff.
Everything that happens throughout the year affects you, not just at the budget time.
Please believe we try to work for you and do what is best overall; sometimes it
doesn't look like that because of your viewpoint, but what's good for my neighbor is
not always good for me. Mayor Borne thanked everyone for attending and stated that
he hopes to see everyone at future meetings.

There was no further business, and Mayor Borne adjourned the meeting at 6:00 p.m

LG

Mayor

ATTEST:

ee ee — Z__
City Clerk