City Council

CITY COUNCIL MINUTES CITY OF ODESSA, TEXAS July 28, 2025 On July 28, 2025, a budget workshop meeting of the Odessa City Council was held at 8:12 a.m. at MCM Elegante, Waterfront, 5200 E University, Odessa, Texas. City Council present: Mayor Benard Hendrick; Council members: Eddie Mitchell, District One; Steven P. Thompson, District Two; Gilbert Vasquez, District Three; Greg Connell, District Four; Chris Hanie, District Five; and Raymon Stoker, At-Large. Staff present: Norma Aguilar, City Secretary; David Vela, City Manager; Aaron Smith, Assistant City Manager; Kala Hardy, Interim Chief Financial Officer; Kaylie Banda, Director of Finance; and other members of City staff. A quorum being present, Mayor Hendrick called the meeting to order, and the following proceedings were held: Council member Hanie gave the invocation. Mayor Hendrick stated that the City needed to articulate what’s best for our city. He asked to explain and tell the story and give the message of why things were done. Mr. Vela thanked the staff for working on the budget. Review draft of Fiscal Year 2025-26 City of Odessa Budget. Ms. Banda reviewed the budget philosophy. She gave the property tax overview. Council discussed the reasons for raising the property tax and informing the citizens on the reason for increasing the tax rate including marketing. Ms. Banda reviewed the sales tax, which was budgeted at a conservative number of $60 million. She reviewed the reserve assumptions in keeping six months in reserves. She discussed the funds of concern including Solid Waste and Risk Management. The proposed increase in solid waste rate was due to an inflation cost. Council member Thompson discussed risk management and how the new insurance would save funds. Ms. Banda reviewed the Gallagher/personnel assumptions and how it would impact the funds. The total impact was $2,329,544 up to the 50th percentile mark. The amount was included in the budget. The City Manager provided additional recommendations at a cost of $725,496 which included an increase in wage of the lowest pay grade. Additional adjustments were made to avoid compression. The total impact with the City Manager recommendations was $3,055,040. The personnel provided a strategic plan. Ms. Banda discussed other inflation assumptions. There was a break from 9:17 a.m. – 9:36 a.m. Water/Sewer Fund. Ms. Banda reviewed the Water/Sewer Fund. The Pioneer contract would be reviewed for renewal. Alex Rowlett, Director of Utilities, explained the Pioneer contract and the purpose of the use of sale of reclaimed water. He stated that the reclaimed water to sale options would be explored. She discussed the revenue and expenditure changes. The Utilities supplemental requests were reviewed. Mr. Rowlett explained the supplementals needed. Council discussed the funds for the supplementals. The Council had a consensus to the proposed Water/Sewer Fund. Council Budget Workshop Minutes July 28, 2025 Page 2 General Fund. Ms. Banda reviewed the General Fund. The fund had the personnel salary recommendations. Discussion was held on the expenditures. Departmental supplementals were reviewed. Matt Davidson, Deputy Police Chief, reviewed the supplemental requests for the Police Department. A facility needs assessment was recommended for the city facilities. Discussion was held on the available 2019 CIP funds to be used on projects. Jason Cotton, Fire Chief, reviewed the supplemental requests for Fire Rescue. Jon Rogers, Interim Parks and Recreation Director, reviewed the supplemental requests for the Parks Department. He discussed parks projects that were going to be done in the different districts. Joe Tucker, Director of Public Works reviewed the supplemental requests for the Public Works Department. He reviewed the current and upcoming road projects. Mr. Smith reviewed the road projects that would be funded through ODC funds including 16th St. and 52nd St. Kelley Hendricks, Animal Shelter Manager, reviewed the supplemental requests for Animal Shelter. She stated that some of the needs included personnel. Discussion was held on the personnel needed. Chief Cotton discussed the supplemental request for Public Safety Communications. The request was to provide a step plan for employees at Public Safety Communications. He reviewed and explained the step plan. There was a break from 12:15 p.m. – 1:22 p.m. Monica McDaniel, Director of Communications, reviewed the supplemental requests for Communications. She reviewed the projects for Communications. Charles Hurst, Director of Human Resources, reviewed the supplemental requests for Human Resources. Michelle Racca, Director of Public Communications, reviewed the requested step plan for 9-1-1 emergency dispatchers. The Gallagher recommendation and the step plan recommendation were compared. Mayor Hendrick stated that staff needed to have more time to review a possible future step plan. Elizabeth Shaughnessy, Director of Development Services, reviewed the supplemental requests for Planning and Building Inspections. She reviewed Planning’s current projects. Leah Albertson-Huff, Director of Municipal Court, reviewed the supplemental requests for Municipal Court and Municipal Court Judges. Naira Enriquez, Director of Community Development provided statistical information on housing lot development. She reviewed the supplemental requests for Community Development. Scott Anderson, Director of Building Services, reviewed the supplemental requests for Building Services. Mr. Smith emphasized the importance and the use in the contingency. He recapped the available funds to fund supplemental items. Mayor Hendrick respected the needs of the directors. Mr. Smith stated that staff would recommend the supplemental items to be considered by Council. Council member Hanie suggested holding on to the six million dollars reimbursable TxDOT funds to be used for the I-20 project. Mayor Hendrick suggested holding on to the six million dollars for emergency projects. The Council had a consensus to use the 2019 CO available funds on projects as soon as possible. Council member Thompson stated that Yukon Road was developing rapidly, and funds may need to be directed for the road. Council member Mitchell asked that the employees be addressed with the salaries. Water/Sewer Fund. Jo Ann Pena, Billing and Collection Manager, reviewed the supplemental requests for Billing and Collection. Council directed to pass the credit card fees to the customer and the City does not pay the fee. She explained the process for water bills with paper and paperless bill. Discussion was held on automatic water shut offs. Discussion was held on the armor services. Council directed that a local bank be used. Council Budget Workshop Minutes July 28, 2025 Page 3 Solid Waste Fund. Ms. Banda reviewed the Solid Waste Fund revenues and expenditures. Jathan Escontrias, Solid Waste Operational Manager, explained the expenditures that were made on the last budget. He reviewed the requested supplemental requests for Solid Waste and Keep Odessa Beautiful. Council reviewed the budget with its ending fund balance. Mr. Smith stated that trucks and employee positions were critical. Council directed staff for a recommendation on funding the supplementals. Mr. Smith suggested funding a design for the Solid Waste Building. There was a break from 3:10 p.m. – 3:23 p.m. Storm Water Fund. Ms. Banda reviewed the Storm Water Fund’s expenditures and revenues. Mrs. Shaughnessy explained the purpose of Stormwater. She reviewed the supplemental requests for Stormwater. Golf Course Fund. Ms. Banda reviewed the Golf Course Fund’s revenue and expenditures. Mr. Rogers reviewed the supplemental items requested for the golf course. A feasibility study will be made for another course. Equipment Service Fund. Ms. Banda reviewed the Equipment Services Fund’s fund balance. She stated that funds were available for replacement fleet. Lura Cotton, Director of Equipment Services, reviewed statistical information and the need for fleet replacement. She discussed the option of leasing fleet. Mayor Hendrick asked about the vehicles that were ordered two years ago and if it breached the contract since the vehicles were not yet delivered. Chief Cotton provided information on Fire Rescue’s fleet. Risk Management Fund. Ms. Banda reviewed the Risk Management Fund. Ben Marts, Interim Risk Management Director, recommended having another year of data to provide valuable information for any future supplemental requests. Information Technology Fund. Ms. Banda reviewed the Information Technology Fund’s revenues and expenditures. Tony Flores, Director of Information Technology, reviewed the supplemental requests for Information Technology. He explained the purpose of SCADA and the need for personnel. Hotel-Motel Tax Fund. Ms. Banda reviewed the allocations for the Hotel-Motel Tax Fund which included the sports complex. Mr. Smith explained options for the sports complex funding. The LULAC request was eligible for Odessa Arts funding and Council directed it to be funneled to Odessa Arts. The HOT Funds process would be improved. Funding for the Visitors Center would be included for $2.1 million. Closing remarks. Ms. Banda stated that staff recommendations would be provided for supplemental items. She provided key dates for the budget process. Mr. Vela thanked Council. He stated that citizens would be informed about the budget. He stated it was time well spent with valuable comments. Council member Vasquez thanked staff for their work. Council Budget Workshop Minutes July 28, 2025 Page 4 Motion was made by Council member Vasquez and seconded by Council member Thompson to adjourn the meeting. The motion was approved by the following vote: Aye: Hendrick, Stoker, Mitchell, Thompson, Vasquez, Connell, and Hanie Nay: None The meeting adjourned at 4:38 p.m. ATTEST: APPROVED: Norma Aguilar, TRMC, CMC Benard Hendrick VII City Secretary Mayor