City Council begins process of 100% exemption from ad valorum taxes for qualifying childcare facility properties

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During Tuesday morning’s meeting, the Brownwood City Council unanimously approved on first reading an ordinance establishing a 100 percent exemption from ad valorum taxes for qualifying childcare facility properties.

The citizens of Texas were able to vote on a proposition that would allow for a property tax exemption for childcare facilities and that did pass so it is up to each taxing entity to determine if they will allow that exemption,” said Brownwood City Manager Emily Crawford. “Today the City Council did vote to approve a 100 percent exemption for childcare facilities who comply with the act. There’s a program with the Texas Workforce Development Center as well as the number of children they have enrolled who receive workforce benefits. There are some substantial criteria in order to receive that benefit.”

Cities and counties now have the option to provide an exemption from ad valorem property taxation of between 50% – 100% of the appraised value of all or a part of real property used to operate a commercial childcare facility.

To be eligible for the exemption, licensed childcare facilities must participate in the Texas Rising Star (TRS) Program of the Texas Workforce Commission (TWC) and maintain a minimum 20% enrollment of children who receive subsidized childcare services provided through the childcare services program administered by the TWC.

The law prohibits home-based providers from claiming both the residence homestead exemption and the child-care exemption. If the childcare facility is in a leased property, the law requires the property owner to ensure that the rent charged reflects the tax reduction. The Brown County Appraisal District (BCAD) would be responsible to verify the childcare facility qualifies for this exemption.

The ordinance must again appear before the Council for a second and final reading prior to approval.

Crawford also informed Council at the start of the meeting a $1.5 million grant from the Texas Parks and Wildlife Department to assist with the renovations of the Bennie Houston Center has been OKed and will be officially approved next week.

Also Tuesday, the Council:

Approved the City Manager to sign a grant award in the amount of $368,542 from the Texas Department of Emergency Management acting as a sub recipient of the Federal Emergency Management Agency to replace the city’s 12 storm sirens

On December 12, 2024, the City was notified of a grant award from an application submitted to Texas Department of Emergency Management back in 2022. The grant was written to replace the City’s 12 aging storm sirens and all associated hardware and software.

The new system would use up to date technology and would no longer require a person to manually set off the sirens, the sirens would be activated by the National Weather Service for only the area that is in the path of the storm.

The 90/10 grant award of $368,542 is a 90% FEMA or $331,68.80 and 10% City or $36,584.20 match. The City is also eligible for up to $16,070 in project management costs, which would lower the City’s match.

Since this is a FEMA Hazard Mitigation grant the City would have to front the cost of the project and would then receive payment as the project progresses. The City portion of the matching funds would come from a budget amendment to the capital equipment fund.

The project will come back to the Council for final approval after The Texas Department of Management verifies all the federal procurement guidelines are met.

Approved a bid for the installation of a new roof at the Central Fire Station located at 600 E. Adams for the amount of $60,784 from Lydick-Hooks Roofing

The main Fire Station experienced hail damage causing numerous leaks to develop in the roof. After working with the insurance company, a settlement was reached in the amount of $66,046.91 to replace the roof and repair other damages.

On December 19, 2024, a bid opening was held and the City received three proposals. All proposals received met the requirements of the RFP. Lydick-Hooks Roofing is recommended by City Staff because of price and past relationship.

They originally installed the roof when the station was constructed. Lydick-Hooks Roofing located in Brownwood submitted the low bid at $60,784 plus any needed plywood replacement at $68 per sheet.

Awarded Covington Contracting out of Andalusia, Alabama the Landfill’s building improvement projects at a cost of $856,824

City Staff solicited proposals to build a new office building for the Citizens Convenience Center (at entrance of the Landfill), baler building, and oil shed for the Recycling Center, and make electrical improvements to an existing storage building. Three bids were received, and the lowest bid was from Covington Contracting. The remaining CO monies after this project is complete, estimated at $257,676, will be utilized to improve drainage, clean out water retention ponds, and replace the north and south fencing.

Authorized the purchase and installation of a new recycling baler at the Landfill at a cost of $179,648.95 by Wessco from Portland, Oregon

City staff solicited for proposals a second time to purchase and have installed a new recycling baler at the Landfill. Five bids were received and read aloud on December 16, 2024, and all bids met the qualifications. The original budgeted amount for the baler was $178,000 which is an increase of $1,648.95.

Awarded Grider Paving out of Early the Service Center Paving and Drainage Improvements at a cost of $357,250

City Staff solicited proposals to make surface improvements to the Service Center yard along with required drainage improvements based on the recent drainage study. Three bids were received, and the lowest bid was from Grider Paving. This project will be funded through the Service Center Surplus account.

Approved a lease with Brown County for the Veterans Service Office in the City owned building in Memorial Park

In the fall of 2024, the City was notified that the American Legion did not want to renew their lease with the City for the building located in Memorial Park. The lease expired on Dec. 31, 2024. Also officing in the building is the Brown County Veterans Service Office, and they desire to stay in the building. Brown County approved the lease on Dec. 23 and utilities have been put in their name. This is a no-cost lease and the tenant is responsible for maintenance and upkeep.

Approved an Agreement with P3Works, LLC for Public Improvement District (PID) Creation and Administration Services for a proposed residential development

The City has received a request from a private developer for a Public Improvement District (PID) to provide public utilities for a new residential development. The City desires to engage technical experts in the creation of the Service and Assessment Plan, bond issuance, administration of the District, creation of the Final Project and Finance Plan, and the Annual Reporting of the PID.

According to the PID Policy adopted by the City Council, the City will require the developer to enter into a Professional Service Agreement and pre-fund an escrow fund in the amount of $25,000 to cover fees related to the PID before such time as assessments may be levied. The cost of the services provided by P3Works will be paid for by this escrow fund.

This will be the second PID project that P3Works will evaluate and service on behalf of the City. A separate agreement is required for each development project.

Approved a Deposit and Reimbursement Agreement with JRM Land & Cattle Co. LLC for the Bayou Place Development

The City has received a request to create a Public Improvement District (PID) for a possible residential development that is located inside the City limits.

The Deposit and Reimbursement Agreement will require the developer to deposit an initial balance of $25,000 to pay for the City’s professional expenses that will be incurred in evaluating and creating a PID as part of the negotiation of a Development Agreement. In the event that the balance with the City drops below $5,000, the Developer will replenish the balance to $25,000.

If the PID is created, the ongoing administrative expenses of the PID will be paid by the Developer from the assessments on the Property and/or any bonds issued by the PID. The City will not be responsible for the ongoing costs of the administration of the PID.

Authorized the City Manager to sign a Memorandum of Understanding with Brown County to allow the Brownwood Fire Chief to act as the Interim Emergency Manger for Brown County

The Brown County Emergency Manager retired as of December 31, 2024, leaving the County without an Emergency Manager. The City of Brownwood’s Emergency Manager Fire Chief Hicks has been working closely with the Brown County Emergency Manager on a few important time sensitive projects. It is important to have the County Emergency Manager position in place to keep these projects moving forward and facilitate emergency response.

With approval, the County will reimburse the City monthly at a rate of $56.41 per hour for 8 hours per week. The term of this agreement will be for up to six months with the ability to re-negotiate if needed.

Re-adopted the City of Brownwood Investment Policy

The Public Funds Investment Act requires a review and re-adoption of the City’s Investment Policy at least once per calendar year. The City’s current investment policy was amended on January 10, 2023 and no changes were recommended.