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HomeMy WebLinkAboutCC Minutes 2026 08 24 SpecialMINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD August 24, 2026 THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD MET IN A SPECIAL MEETING ON MONDAY, AUGUST 24, 2026, AT 5:30 P.M. IN THE COUNCIL CHAMBERS, FRIENDSWOOD CITY HALL, LOCATED AT 910 S. FRIENDSWOOD DRIVE, FRIENDSWOOD, TEXAS, WITH THE FOLLOWING MEMBERS PRESENT CONSTITUTING A QUORUM: John Ellisor Councilmember Sally Branson Councilmember Trish Hanks Councilmember Robert J. Griffon Councilmember Randy Hale Councilmember Michael P. Ross Mayor Pro Tern Mike Foreman Mayor Morad Kabiri City Manager Karen Horner City Attorney Raquel Martinez City Secretary 1. CALL TO ORDER Mayor Foreman called the meeting to order with a quorum at 5:30 P.M. All members were present. 2. INVOCATION The invocation was led by Senior Pastor David Lorenz of First Baptist Friendswood Church. 3. PLEDGE OF ALLEGIANCE —United States and State of Texas Mayor Foreman led the Pledge of Allegiance of the United States and the Pledge to the State of Texas. 4. COUNCIL COMMENTS AND REPORTS Mayor Foreman opened the item inviting the councilmembers to provide their comments and reports. Councilmember Branson noted they will be having an Ice Cream Social on Labor Day and invited everybody to come for some free Blue Bell ice cream at the Perry House. Councilmember Hanks announced the Friends of the Library will be having their fundraiser gala on September 26'h. Councilmember Griffon apologized for not being able to attend the special Council meeting a couple of weeks ago on August I Ph. He was able to watch the meeting recording and looked forward to the budget discussion. Councilmember Ross also apologized for missing the special meeting. He watched the recording and appreciated the opportunity to continue the discussion. 5. PUBLIC COMMENT Mayor Foreman announced no citizens had signed up to provide a public comment. 6. MUNICIPAL BUDGET FOR FISCAL YEAR 2026-2027 City Council Special Meeting Minutes August 24, 2026 Page 2 of 13 A. Conduct a public hearing regarding the Proposed Fiscal Year 2026-2027 Municipal Budget for the City of Friendswood. At 5:36 P.M., Mayor Foreman opened the public hearing and asked staff to summarize the subject matter. Finance Director Rhonda Bloskas relayed Texas Local Government Code mandates that a public hearing be held on the proposed budget to allow comments from the public. She then provided a high-level overview of the past presentations given at prior council meetings, as follows: I KEY BUDGET DRIVERS • Debt Service Obligations • Personnel Costs • Deferred Maintenance • FWD Contract • Severe Weather Expenditures • Emergency Response Vehicles TOTAL PROPOSED REVENUE (ALL FUNDS) — $129AM Property Tax Permits & Grants & 25% Licenses Interlocal $32.5M <1% 7% $07M___...__....._..._.._. ._$9.2M ........`---...__-- ---..........—_._._....._—_.. Utility Services Other Tax Fines 19% 13% <1% ....._.._$16:9M...---... ... $1,OM _$24.6M . ........ Community Other Services 33% 2% $42.4M $2.OM FY 2027 AD VALOREM TAX RATE Total Tax Rate: $0.559723 M&O Rate: $0.441165 I&S Rate: $0.118558 Debt Service $6,840,355 21% Maintenance and Operations $25,453,505 79% I PROPOSED BUDGET CHANGES August 3" Council Meeting GENERAL FUND EXPENDITURES — $48.1M (no change) • Deletion — Special Election Services - $150K • Addition —1 FTE Deputy City Attorney - $150K PROPOSED BUDGET TAX RATE 4.56 cents above current rate (51.410) • NNRR-51.480 • VATRw/UnusedIncrement Rate —58.6980 Net Estimated Taxable Value $5.77B Projected New Construction Value —$78.IM Property Values Under Protest (7/28126) — $338M TOTAL PROPOSED EXPENDITURES ALL FUNDS) — $129AM General Parks & Community Government Recreation Development & 8% 5% Publieworks $10.9M $6.4M 15% $17.9M Public Safety Debt Engineering 18% Services l% $23.8M 10% $1.3M $13.3M Library Fleet Capital 1% Replace- Improvements $1.6M Ment 41% 1% $53.2M $I.OM Onto the General Fund, Ms. Bloskas presented the following: GENERAL FUND REVENUE — $48.1M Property Tax Sales Tax Franchise Tax $25.50M $11.1OM Includes mixed drink $2.6M over PY Up $128K $2.15M Actual 23.0% Up $33K 53.0% 4.5% Fines Interfund Licenses & Permits $923K Transfers $739K Down $14K $3.79M Down $261K 1.9% Up $58K 1.5% 7.9% Intergovernmental Charges for Miscellaneous $857K Services Interest Up$34K $1.91M Cell Tower 1.8% Down$10K Agreements 4.00% $1.14M Up $119K ......._.....---.....-_......_---- -....___.........-_............. 2.4% ._----'---....- Use of Fund Balance $OK Down$500K 0.0% GENERAL FUND - FORCES AT WORK & DECISION PACKAGES Funded Forces at Work Dent Description I Net Total DES - Transfer to HR House Bill 4144 Retiree $5,000 Insurance IT Police Department Microsoft $27,000 _.._...__._...._......__ _ Licenses (Year ...-----..-_.._......._..__....... . ......... ........... IT Enterprise Resource Planning $55,000 Software Cloud Conversion —..dmin PD_Admin _..olic.........__......_......._................................__.._ Police Policy Accreditation ._..-'--'000* $25,000 .--.....--------------... ------------------ PD_Patrol Motorola Equipment Service $59,987 Total Forces at Work 1 $2,084,054 Funded Decision Packages Dept _. Description _ _Total Savings _ Net Total City Merit 2.75% $751,210 $441,084 $310,126 Wide --- —..—.... .._............_................................................ CAO Deputy City .—.._..._...__. $244,348 _................ $94,348 $150,000 Attorney (+1.0 ----'-' FT_F)._. _......__ _................. ..... .._--......... ........ ---.... _. Total Decision $995,558 $535,432 $460,126 Packages City Council Special Meeting Minutes August 24, 2026 Page 3 of 13 GENERAL FUND EXPENDITURES — $48.1M General Community Parks & Government Development Recreation $9.8M $1.8M Facilities Up $493K Up $57K Maintenance 20.4% 3.7% $6.4M Up $32K ........................... _._ .._......_........_.._....._.......__..._. . _ . _13.3% __...._......_...__................. ... _ .. Public Safety Library Engineering $23.6M $1.6M $691K Up LIM Up $53K Up $5K 49.2% 3.3% 1.4% Public Works Capital $3.1M Maintenance Down$135K Fire/EMS Vehicles 6.4% $1.1M 2.3% GENERAL FUND — UNFUNDED DECISION PACKAGES Unfunded Decision Packages DES -EMS Cardiac Monitor and CPR $185,000 Devices LIB Reference - Adult Services $107,643 Librarian (+1.0 FTEL-_ _ -- ---..-...._...'--_...................._........._. ...._ ..---....--- CSO/PR Office Records Clerk (+1.0 $68,573 ........................ _FTE�--'---"--`----.......--------- P&R-Rec Seasonal Summer Staff Wage $18,095 Increase P&R Rec I Recreation Manager (Mid -Year $12,435 Position Reclassification ENG Infrastructure Asset Inventory $160,000 Mgmt_ Framework Total Unfunded Decision Packages for $1,840,429 General Fund GENERAL FUND — FUND BALANCE — $17.96M* Nonspendable & Restricted $11,004,026 61.27% Available for Capital I Projects $194,330 1.08% City Council Special Meeting Minutes August 24, 2026 Page 4 of 13 Planned Use $1,038,818 5.78% Onto the Water and Sewer Fund, Ms. Bloskas presented the following: WATER & SEWER REVENUE — $251M Water Sewer Administrative Fees $11.74M S12.45M $559K Up $639K Up $990K Up $44K Includes rate Winter months Includes late payment study average for penalties, recommended single discom ects/reconnection rates for FY27 family fees, same 47% residential day service, etc. customers 2% _.—...._.....-..._..._...."- 50% -- -----_..__.....---- —............_...------._............_.....--- WaterMeter Miscellaneous Sales Interest $35K $308K No change Down $56K <1% <1% WATER & SEWER FUND — FORCES AT WORK Funded Net Total PW_WO City of Houston Raw Water $207,291 Settlement Agreement (FY27- _FY35Z----...._._._.----.._...-- - - - PW_WO Southeast Water Purification Plant - $488,371 PW_SO Blackhawk WWTP Back -Up $348,920 Generation PW_SO Blackhawk WWTP CIP Program $1,040,000 '.n............. -.......... -_.................. _ .._._.._..__.._.._ Total Fare" at Work $2,868,863 FY26 Uses of Fund Balance $5,197,603 28.94% Advanced Grant Funds $523,802 2.92% WATER & SEWER EXPENDITURES Water Sewer $8AM $9.7M Up $665K Up $1.8M 33% 39% Capital Improvements Debt Payments $800K $6.2M Down$1.5M Up$557M 3% 25% WATER & SEWER FUND — DECISION PACKAGES Funded Dept —_ Description_ Net Total City Merit 2.75% $80,491 Wide PW_WO Customer Service Compliance $16Q,655 _Coordinator+Vehicle(+1.O FTE) _ _ ENG Analysts Services $20,000 _wastewater _ Total Decision Packages_[. $261'I Total FAW & Decision Packages fm R'ater $3,130,009 & Sewer Fand Unfunded __Dept__Dq_tJ Description ___ Net Total ENG Water System Infrastructure Planning & $950,000 _ _Hydraulic Model Ulydate ___ Total Unfunded Decision Packages for Water $950,000 & Sewer Fund WATER & SEWER WORKING CAPITAL— $12.9M FY26 Uses of Working Capital $4,725,035 36% 90-Day Reserve $2,663,721 21% Ms. Bloskas closed the presentation with Council's next steps as follows: 8/24/2026 1 Proposed Budget Public Hearing (Special Meeting) 9/14/2026 1 Budget & Tax Rate City Council Special Meeting Minutes August 24, 2026 Page 5 of 13 Planned Uses $5,285,576 41% Available Working Capital $244,920 2% At 5:50 P.M., with there being no citizen desiring to speak, Mayor Foreman closed the public hearing. B. Discuss and take action concerning the City of Friendswood's Proposed Fiscal Year 2026-2027 Municipal Budget. City Manager Morad Kabiri summarized that Council and staff have been discussing this for well over two months and he believes this is their fifth City Council Meeting regarding the FY27 budget. He noted that Council does not have to take action on the budget tonight and can be postponed until the September 14th Council meeting. However, staff needs direction from Council. Mr. Kabiri noted this budget is the culmination of not just a year's worth of work and evaluation analysis, but also multiple years' worth of valuation adjustments throughout the community and multiple years of changes in the economic outlook for this area. Mr. Kabiri relayed that one of the things talked about in prior years is, "We'll just cut this year, and then next year hopefully we'll see growth... Hopefully, we'll see something that will delay the inevitable tax increase." Unfortunately, the decision was made for Friendswood a long time ago when they decided they did not want 50-foot lots, apartments, nor did they want significant commercial growth. They made the decision that they were not going to have a lot of new construction, and that any new construction we get added to this community's rolls was going to be very intentional and metered, a very slow -growth city. Thus, Mr. Kabiri explained even if Council were to say tonight, "I want you to cut expenditures by 30%," next year they are going to have to raise taxes not to get back the 30%, but on that remaining 70% just to be able to provide the services they are providing today. Friendswood does not get enough in new construction to offset the growth in inflation. With that, he turned the table over to Council. Mayor Foreman noted that Council had a couple options: they could approve this budget as is tonight or they could defer the vote until September 14lh. He preferred for Council to discuss it further in order to understand every councilmember's stance on the budget and what they propose. Councilmember Ellisor stated he was satisfied with what he has heard and is prepared to move forward to approve the budget tonight as is. Councilmember Branson stated she was inclined to do the same. She feels they have worked this over really hard and appreciated the good work that has been done. She shared that she has seen in City Council Special Meeting Minutes August 24, 2026 Page 6 of 13 years past where they have cut themselves short. When they kick the can down the road, it is very painful to play catch-up as Friendswood does not have a lot of economic growth to offset future expenses. She believes this is a very conservative, sound budget and stated she is inclined to approve it tonight. Councilmember Hanks expressed she feels the same way. She believed everybody has done their due diligence and there is nothing that is fluff or that they do not need. Thus, they are stuck with a choice: either they fund it or cut. She noted ten years ago their tax rate was higher than what is being proposed today. It has gone done in those ten years until the last couple of years when they have had to raise it. She noted what has not stayed the same, even though their tax rate has over the past ten years, is the cost of living and salaries. She listed off items that have gone up while the City's new growth has not —yet, the City has had to endure to provide the same level of services. She also touched on the devastating flood they had during those ten years, and that the community had wanted a bond. It was overwhelmingly passed and she noted that one item is equal to today's tax rate of four and a half pennies. Councilmember Hanks further emphasized the City is not a for -profit company. They do not cut their profits. They are a service industry, and it costs to provide those services. Eventually, they cannot keep up unless their values keep growing astronomically faster than the rate of inflation. And this year, that just did not happen. Thus, they either raise taxes, decrease services, or not plan for things in the future. She noted people like living here because it is safe and the quality of living —which they cannot get for free. Their taxes are not sent to Washington, DC or Austin, every penny stays in Friendswood for their city and citizens. For ten years, staff have been trying to figure out how to continue the level of services despite the four and a half pennies they raised or did not raise. She commended them and would have loved it if staff came and said, "Hey, we can do this for the same amount this year," but they cannot. Therefore, she is going to support this budget. Mayor Foreman then shared his experience with working on the budget back in 2016 and 2017, noting they were at a rate higher than the rate they are talking about tonight. In 2019, before they went out for that bond, they told voters, "This is what we need to fix drainage in Friendswood, but we're going to have to add up to five pennies to the tax rate to pay for it." However, he noted they did not because city staff did magic with the numbers and come to Council every year with a proposal and somehow, they do more with less. He acknowledged that, yes, there is a price to be paid for that and there is a limit to how long they can do that, but they are at that limit. On severe weather expenditures, he noted they have to save up for now because the feds have told them they are not going to pay the City back if they have to clean up for a storm like Beryl. Mayor Foreman also noted they have taken possession of a $2.4 million fire truck. When they are going to need another fire engine, they are going to be hurting because they do not have a cash account to pay for those things. He noted they will also need another ambulance pretty soon. They need a fund now so they can have the money in reserve when they need to buy a new ambulance. On Deferred Maintenance, the Mayor recalled they have just taken it out of their fund balance when they can. However, now they are at the point where they have zero fund balance remaining to do any kind of deferred maintenance so, they need to start a fund where they are budgeting money every year. He also stated they want to keep the Friendswood Volunteer Fire Department (FVFD) and they have costs. This budget includes those things which is why he is going to support this. Councilmember Griffon commented this would be the largest tax increase since he has been on the dais and was not willing to raise taxes on his family, nor residents, to the extent staff is asking. He stated that he has voted for the no new revenue rate (NNRR) and was pleased with the results of that vote. He then City Council Special Meeting Minutes August 24, 2026 Page 7 of 13 took a moment to respond to what was discussed at the meeting he was absent. Councilmember Griffon shared that he had made a promise to Former Police Chief Bob Wieners, and he made the exact same promise to Chief Rogers, that he will make sure the Police Chief has the resources and equipment he needs to safeguard his personnel so they can perform at the world -class, superior level services they provide to residents year in and year out. On police salaries, he noted the gap between the City's starting officers' pay and other agencies compared is $4,243. He believed if they gave all 67 licensed and certified officers a $4,243 raise added to their current salary levels, it would only cost the City $284,287 in this budget. Furthermore, their budget for merit pay this year is $310,000 city-wide, and not all of that is earmarked for public safety, but most of it is. Thus, if they want to make this a priority for the next budget year or now, he was willing and able to provide a way to make allowances for the $284,287 needed to make that happen. On Fire and Emergency Medical Services (EMS) equipment replacement, Councilmember Griffon proposed they remove the $600,000 from the decision package and use $600,000 from the interfund to transfer to the vehicle replacement fund. On the deferred maintenance allocation of $500,000, he agreed that is an important item to fund. He noted streets and roads have a line item for $500,000 and believed they can now fund their streets and roads through a special tax dedicated just for streets and roads. Thus, he proposed they remove this line item and transfer these funds to a new deferred maintenance budget line item for now, or until the voters elect to no longer fund the special tax and then it can be put back in. On the Deputy City Attorney's decision package of $150,000, he stated that is an easy decision as the City Attorney, Karen Horner, needs the support to do her job effectively. He noted they have an opening for a building inspector and instead of filling that position in the Community Development Department (CDD), he proposed they use the $150,000 to fund the Deputy City Attorney. Regarding the unfunded disaster and severe weather funds, Councilmember Griffon stated the $500,000 proposed is woefully inadequate. If there are any overages in the property taxes and sales tax fund in the 2026-2027 budgets, he proposed at least half of all those funds be used for this line item. He acknowledged there may not be any funds available in 2026 and 2027 budget year to fund this line item, but he was confident there will be. He concluded that is a total of $1,750,000 removed from the forces at work for this year's budget, which would reduce their proposed tax rate by $1,750,000 divided by $577,000, or $0.030329. The proposal he was making is to adopt a tax rate of $0.529349394—which is a tax increase of $0.015222 above last year's tax rate and $0.0144 above the NNRR tax rate. He stated that is a tax rate he could support. He additionally gave the suggestion to take $294,000 out of the Parks and Recreation budget and put it into the Police Department for raises for police officers. Mr. Kabiri then took the time to address Councilmember Griffon's comments. He noted the $500,000 for streets does not exist. For a number of years, that was taken out of the fund balance, it was not taken out of the revenue from the taxes so, there is no $500,000 for streets to shift. With respect to the police raises, the total drive -out cost for those adjustments is around $485,000. Mr. Kabiri stated that is not a simple linear equation of $4,000 per officer. Furthermore, he noted they cannot take interfund transfers from water and sewer to subsidize general fund operations as it is illegal. With respect to Beryl, Mr. Kabiri clarified the City has been reimbursed for Beryl. However, the state has notified them that they will not reimburse the City for a Beryl -type event in the future. He also noted that Councilmember Griffon is correct that $500,000 is not nearly enough to fund another Beryl. Councilmember Griffon clarified he was just giving suggestions and proposals. Where it comes from and how it goes is Mr. Kabiri's job. Mr. Kabiri agreed and established that he just wants to make sure they are talking from the same sheet of music. City Council Special Meeting Minutes August 24, 2026 Page g of 13 Onto the next councilmember, Councilmember Hale asked about the budget impacts of the FVFD since they will become city employees. Mr. Kabiri replied it is not going to change anything fundamentally from a budget standpoint. If they were going to roll into FY27 under the same terms of their current contract, it would have been $1.4 million. Thus, their contract is being reduced by $300,000 for the City to assume the day crew. Additional discussion ensued regarding how many personnel are coming onboard, how that affects response time, and pay. It was noted that the matters of the contract could be further discussed when Council considers the contract at next month's council meeting. Councilmember Hale commented it is really not the tax rate that is a problem —it is the expenses versus the revenues. He explained he would not support the proposed budget as presented because throughout this process, he has raised questions and offered specific suggestions aimed at reducing enough spending to reduce the proposed tax rate increase as much as possible. For example, he had suggested eliminating the proposed $500,000 emergency reserve, recognizing that Texas law provides a disaster property tax mechanism that can be used if the City faced extraordinary disaster recovery costs thatare not reimbursed by FEMA, the state, or the county. He also asked whether they could reduce the vehicle replacement fund lease payments charged to the general fund. The answer from staff as he understood it was that they could, but they are already delaying some vehicle deliveries and doing so would create more replacement delays in the future. He additionally looked at reducing the merit raise fund and questioned taking the $150,000 that became available when they decided not to hold a bond election to fund a position in the City Attorney's Office. Prior to this change, he noted they were okay and could do without funding that position. Councilmember Hale expressed those proposals and questions he made have generally been met with explanations that the expenditures are necessary, best for the city, or that taxpayers will understand the increase. He disagreed. He believes the reductions he suggested could be well over $1 million and may not eliminate the tax increase but would reduce it. He reiterated his goal is to minimize spending without sacrificing service levels. He further recognized that some decisions made in previous years are contributing to the financial pressures they face in the upcoming days; for example, committing substantial future tax revenue to two Tax Increment Reinvestment Zones (TIRZ). He critiqued Downtown District dedicated sales tax being spent decorating a roughly one -mile section of FM 518. He suggested they have the downtown committee take their wants and needs to Council for funding like all the others have to do. Or, perhaps a special Public Improvement District (PID) could be created so the property owners within the Downtown District pay the cost of the improvements via assessments. With that, he stated it is difficult for him to tell taxpayers they need substantially more property tax revenue for essential city set -vices, while at the same time dedicating more than $1 million a year in sales tax revenue to decorating downtown. Councilmember Hale reiterated he would vote no on this budget and the proposed tax rate of nearly $0.56. He believed city staff are some of the best at what they do and have proven that they can do more with less. He believed they could get by with a bit less. Mayor Foreman asked Councilmember Hale if he had a number for a tax rate that he would be agreeable to. Councilmember Hale stated, no, he does not have a hard number. He just thinks there are a lot of ways to reduce this budget. Mayor Pro Tent Ross commented on his belief that as a governmental entity, we do not get to decide how much more we want to raise taxes because it is convenient for us to balance a budget. It is just not the way it should be done. He understands that we have staff that are incredibly talented, smart, and dedicated to the task. Staff has asked Council to give them some direction and believes they have heard from one side of the dais that everything's great, we're on par. However, from the other side of the dais they have heard that we need to stop spending so much. Council Member Griffon said two meetings ago, "We don't have a revenue problem, we got a spending problem," because everybody knows our revenue is basically City Council Special Meeting Minutes August 24, 2026 Page 9 of 13 capped. It is a little over -glorified term for what it is, very simplistic, but our revenue is not increasing at the rate of our spending. He proceeded to provide additional numbers and noted that in 2022-2023, their fiscal year adopted budget for general fund operations was $34 million. In 2025-2026, it was $45 million, an $11 million increase over a three-year period which is 11% a year. He understood there is inflation and that the only way to combat inflation is to stop feeding it. They have to look at what services they are providing and decide which of them they are willing to cut. He stated he is a "no new revenue rate guy" because if they do not draw the line somewhere, it is going to continue to creep. They have to stop the spending eventually, and that means there is going to be some cuts to some services. He stated they have to rely on staff to tell Council which ones those are and challenged staff to find those dollars. At 6:15 P.M., Councilmember Ellisor left the meeting. He also suggested that the fund balance be used to pay for salary increases. Mr. Kabiri noted that is not a reoccurring revenue. The fund balance is a savings account. If they paid raises out of a savings account, it would violate the financial policy, and they would have to raise taxes to offset it. Mayor Pro Tem Ross stated there is always an answer to a proposal and reiterated his challenge to staff to save $2.4 million on the budget and critiqued hearing "no" instead of, "Oh, its not a bad idea, let's find a way to do this some other way." He emphasized that he manages billion -dollar budgets and when he sets his budget, it is not a penny more, things get cut. Assistant City Manager Katina Hampton noted he could do that in the private industry but not in public government and if they do it here, residents will be calling to complain. However, Mayor Pro Tem Ross held firm that they could do it in the public. On the vehicle replacement fund, Mayor Pro Tem Ross stated they needed to stretch those dollars. Mr. Kabiri noted that historically, they have stolen from Operations and Maintenance to pay for debt service, and then ultimately those costs have then squeezed out the City's abilities to provide the services. If Council would like to extend the vehicle replacement fund for the non -emergency vehicles, they can definitely do that. However, it is still going to cost us a tax increase next year when those vehicles go from 10 years replacement to a I I or 12-year replacement cycle because of the extended maintenance cost. Mayor Pro Tem Ross indicated that last year they added 16 positions, the majority of them public safety, but why did they add 16 positions when they have had a less than 2% growth factor or is it because they were not funding them as they went along. Mr. Kabiri reiterated that they had been doing things with less and it was catching up to them, and as indicated to them at the August I Vh special Council meeting, that was being done in the Police Department as well. Friendswood is an incredible place to work but it won't be if the City starts taking away merit raises and starts asking them to continually do things more and more with less. On the reserve fund for disasters, Mayor Pro Tem Ross compared the contract and service level they got from Harvey to Beryl. He noted the amount of money they paid to remove tree limbs was exorbitant. He suggested a way to solve that by not hauling it straight to the dump, taking it to an auxiliary site where it can be processed further through a shredder, and then take that to the dump. Staff noted the debris would be transported twice, and they do not have a proposed location that it could be moved to. Mayor Pro Tem Ross critiqued staff for having an answer for everything, but they have not done all the math. Mr. Kabiri noted he could present staff with their alternatives, and they would gladly do that. Nevertheless, Mayor Pro Tem Ross expressed he did not think there is any validity in discounting some of the suggestions they City Council Special Meeting Minutes August24,2026 Page 10 of 13 have made as often as they have been discounted. Ms. Hampton apologized if he felt that it was discounted. She explained staff is trying to give Council as much information as possible to be able to make decisions. Mayor Pro Tem Ross's closing comment is that the budgetary process starts the day after it is passed. He suggested Council should have, at a minimum, quarterly meetings to go over, "here's what we're projecting, here's what's going to happen if we don't, this is what the tax rate's going to be based on our projections." Mayor Foreman recommended Councilmembers Ross, Griffon, and Hale have sit-downs with staff. Staff need to have a chance to look at and come up with a way to do the things the councilmembers are suggesting they do. Councilmember Griffon agreed he was willing to work with staff but not willing to go up to $0.046 on the tax rate. He was willing to go to $0.52, almost $0.53. Councilmember Hanks offered if they do not put $500,000 in an emergency fund this year, there is a penny they save on the tax rate. If they do not have a line item for Deferred Maintenance, there is another penny. If they do not have the Deputy City Attorney, there is a quarter of a penny. If they have a disaster, she suggested they could take it out of the 90-day reserve and fill it back up somehow with a different plan. She noted she had argued for a line item on Deferred Maintenance since she got elected because they did not have one. So, they would just go back to not having one and take whatever surplus because they usually underestimate their revenue and overestimate expenditures. She noted that drops the tax rate down $0.025 and asked the councilmembers if there is any hope of something like that to move forward. Mayor Foreman reiterated the recommendation to the councilmembers that they share their suggestions with staff and let staff vet them. To close this item, Mayor Foreman proceeded with a motion to postpone the adoption of the proposed fiscal year 2026-2027 budget until the next regularly scheduled meeting on September 14, 2026. A motion was made by Mayor Foreman and seconded by Councilmember Branson to postpone the adoption of the Proposed Fiscal Year 2026-2027 Budget until the next regularly scheduled City Council Meeting on September 14, 2026. The vote was the following: Ayes: Mayor Mike Foreman, Councilmember Sally Branson, Councilmember Trish Hanks, Councilmember Robert J. Griffon, Councilmember Randy Hale, and Mayor Pro Tem Michael P. Ross Nays: None Other: Councilmember John Ellisor (Absent) The item passed unanimously. C. Consider ratifying the property tax increase reflected in the City of Friendswood's Budget for Fiscal Year 2026-2027. As the adoption of the City of Friendswood's Budget for Fiscal Year 2026-2027 was postponed, Mayor Foreman proceeded past Item 6.C. 7. BUSINESS ITEMS City Council Special Meeting Minutes August 24, 2026 Page 11 of 13 A. Consider authorizing a License and Indemnity Agreement with Sterling Estates, LLC, for the non-exclusive use of the right-of-way along Briarmeadow Ave. for subdivision signs for the Sterling Estates Subdivision. Community Development Department (CDD) Director Aubrey Harbin elaborated that the request before Council is to put four subdivision signs in the right-of-way so that they are not on the corners of the lots. They will meet the sign ordinance requirements as far as size. They have done this before, and the information is in Council's backup material. A motion was made by Councilmember Branson and seconded by Councilmember Hanks to authorize a License and Indemnity Agreement with Sterling Estates, LLC, for the non-exclusive use of the right-of- way along Briarmeadow Ave. for subdivision signs for the Sterling Estates Subdivision. The vote was the following: Ayes: Mayor Mike Foreman, Councilmember Sally Branson, Councilmember Trish Hanks, Councilmember Robert J. Griffon, Councilmember Randy Hale, and Mayor Pro Tem Michael P. Ross Nays: None Other: Councilmember John Ellisor (Absent) The item passed unanimously. B. Consider awarding the Public Works and Engineering Building Roof Replacement Project to Texas Liqua Tech Services, Inc., through Choice Partners Contract No. 26/009LL-14. City Manager Morad Kabiri opened the item explaining that the roof at the Public Works facility, the Blackhawk facility, is in need of replacement. Staff knew this when they purchased the building following Harvey, but they had a greater need of finding housing for Public Works, Parks, and the Engineering departments. Staff had hoped they were going to have a bond election to fund it with the bond proceeds. However, since they are not having a bond election, they are using the fund balance both on the water/sewer side, since it is operational on the water/sewer side, as well as general fund to pay for it. Mayor Foreman suggested they ask their friends at Harris County Precinct 2 to put this in their next budget. Mr. Kabiri replied they can try, but they are making budget cuts themselves. As the City is going to try to do the Bay Area partnership with them, he noted this probably would not be funded. Looking at the budget and ways to cut it, Councilmember Hale asked if this is a deferrable item to a point that they could spend 10% of that, keep it in repair, and maybe next year they can relook at some bond proposals that could cover this cost. Basically, finance it rather than paying cash. Mr. Kabiri replied at the rate of inflation, likely not. If they continue to see escalators in the construction side of things, waiting another year to do a bond package for this project probably would be a wash at best. He emphasized that when the City took ownership of the building, it was already 35-plus years old. The City had no other facility to house that operation because it was completely underwater. So, they were coming into a facility that was already on the tail end of its useful life. Councilmember Hale asked about the cost and Mr. Kabiri replied that $1.2 million and roughly half of it comes from the general fund. City Council Special Meeting Minutes Augusl24, 2026 Page 12 of 13 A motion was made by Councilmember Griffon and seconded by Councilmember Hanks awarding the Public Works and Engineering Building Roof Replacement Project to Texas Liqua Tech Services, Inc. The vote was the following: Ayes: Mayor Mike Foreman, Councilmember Sally Branson, Councilmember Trish Hanks, and Councilmember Robert J. Griffon Nays: Councilmember Randy Hale and Mayor Pro Tern Michael P. Ross Other: Councilmember John Ellisor (Absent) The item passed. 8. CONSENT AGENDA A motion was made by Councilmember Hanks and seconded by Councilmember Branson to approve Consent Agenda Items 8.A. through 8.13. The vote was the following: Ayes: Mayor Mike Foreman, Councilmember Sally Branson, Councilmember Trish Hanks, Councilmember Robert J. Griffon, Councilmember Joe Matranga, and Mayor Pro Tem Michael P. Ross Nays: None Other: Councilmember John Ellisor (Absent) The Consent Agenda passed. A. Consider a resolution verifying the percentage of completion of cybersecurity and artificial intelligence (Al) training programs and authorizing the City Manager or his designee to submit all documentation required by Section 2054.5191 of the Texas Government Code. B. Consider a resolution ratifying an Agreement for Temporary Road Closure of state right-of- way with the State of Texas, through the Texas Department of Transportation, for the Friendswood High School Homecoming Parade on FM 518. C. Consider authorizing the Second Amendment to the Professional Services Agreement for the City of Friendswood Comprehensive Master Drainage Plan Project with Halff Associates, Inc. D. Consider approving the minutes of the City Council Special Meeting held on July 8, 2026. E. Consider approving the minutes of the City Council and Friendswood Employee Benefits Trust Joint Meeting held on August 3, 2026. 9. ADJOURNMENT With there being no further business to discuss, Mayor Foreman adjourned the August 24, 2026, City Council Special Meeting at 7:08 P.M. City Council Special Meeting Minutes August 24, 2026 Page 13 of 13 Attest: qI "V&4� M-11 Raquel a IDFz, City Secretary