OFFICIAL PUBLICATION OF THE TEXAS MUNICIPAL LEAGUE MAY 21 VOLUME CVIII NUMBER 5

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OFFICIAL PUBLICATION OF THE TEXAS MUNICIPAL LEAGUE MAY 21 VOLUME CVIII NUMBER 5
OFFICIAL PUBLICATION OF THE TEXAS MUNICIPAL LEAGUE
                                                            MAY 21
                                                            VOLUME CVIII
                                                            NUMBER 5

                 TEXAS TOWN & CITY •   1   • M AY 2 0 2 1
OFFICIAL PUBLICATION OF THE TEXAS MUNICIPAL LEAGUE MAY 21 VOLUME CVIII NUMBER 5
City of Bellaire City Hall + Civic Center                       City of College Station Police Headquarters

City of Allen Central Fire Station                              City of Seguin Library

LEGACY. DESIGN. SERVICE.
PARTNERING WITH
TEXAS MUNICIPALITIES SINCE 1946
architecture                         alexandria          hoboken
engineering                          atlanta             houston
interiors                            austin              las vegas
planning                             boca raton          los angeles
                                     chicago             salt lake city
                                     dallas/fort worth   san diego
                                     denver
                                                                                                              pgal .com
OFFICIAL PUBLICATION OF THE TEXAS MUNICIPAL LEAGUE MAY 21 VOLUME CVIII NUMBER 5
CONTENTS H FEATURES
Official Publication of the
Texas Municipal League.                           24                                                32
                                                  Formation and Procedures of the Texas             How Planning and Collaboration
This publication assumes no responsibility
                                                  Municipal League Nominating Committee             Established Irving as Texas’
for statements made by contributors
                                                                                                    “Headquarters of Headquarters”
in signed articles. It is not operated for        26
pecuniary gain.
                                                  2021 Annual TML Taxation and Debt Survey          36
                                                  Results Are Available                             City Vision and Innovation Academy:
Editor Christina Corrigan
                                                                                                    A Power Combination
Creative Manager Jennifer Stamps                  28
Designer Will Bowling
                                                  Cultivating Talent in Your Own Backyard           39
Advertising Sales Gray Bulman
                                                                                                    2022 Census of Governments
Printing Publication Printers Corp.               30
                                                  Baytown Strategically Plans for the Future
Texas Town & City (ISSN 1084-5356) is
published monthly except October for $30
per year ($3.00 per single copy) by the
Texas Municipal League, 1821 Rutherford
Lane, Suite 400, Austin, Texas 78754-5101.
Periodicals Postage Paid at Austin, Texas
and additional mailing offices.
                                                  CONTENTS H IN EACH ISSUE
POSTMASTER:
Send address changes to Texas Town & City,        5                                                   14
1821 Rutherford Lane, Suite 400, Austin,          Message from the President                          Small Cities’ Corner
Texas 78754-5101.
                                                  6                                                   18
Section 305.027, Government Code, requires        TML News                                            Legal Q&A
legislative advertising to disclose certain
information.                                      8                                                   41
                                                  Risk Pool News                                      Career Builder
A person who knowingly enters into a
contract or other agreement to print, publish,    10                                                  43
or broadcast legislative advertising that         Health Pool News                                    Instagram Highlights
does not contain the required information
commits a Class A misdemeanor offense.
                                                  12
Texas Town & City contains material which         City Lights
is legislative advertising as defined by law in
the state of Texas.

Mr. Bennett Sandlin has entered into an
agreement with Publication Printers Corp.
for the printing of Texas Town & City                                                                        ABOUT THE COVER
magazine. Mr. Sandlin represents the                                                                         Strategic planning is the
member cities of the Texas Municipal                                                                         bridge to success in the City
League.                                                                                                      of Baytown

                                                        TEXAS TOWN & CITY •    3   • M AY 2 0 2 1
OFFICIAL PUBLICATION OF THE TEXAS MUNICIPAL LEAGUE MAY 21 VOLUME CVIII NUMBER 5
ABOUT H TML                                          BOARD OF DIRECTORS H TML
The Texas Municipal League exists solely             TEXAS MUNICIPAL LEAGUE BOARD OF DIRECTORS
to provide services to Texas cities. Since
its formation in 1913, the League’s mission          PRESIDENT                                   14-Andy Brauninger, Mayor, Huntsville        Jennifer Bozorgnia, Court Services
                                                     Karen Hunt, CMO, Mayor, Coppell             15-Shelley Brophy, Mayor, Nacogdoches        Coordinator, Irving
has remained the same: to serve the needs                                                                                                     Texas Court Clerks Association
                                                                                                 16-David Rutledge., CMO, Mayor,
and advocate the interests of its members.
                                                     PRESIDENT-ELECT                             Bridge City
Membership in the League is voluntary                Martha Castex-Tatum,                                                                     Jimmy Chew, Fire Chief, Stephenville
                                                     Vice Mayor Pro Tem, Houston                                                              Texas Fire Chiefs Association
and is open to any city in Texas. From the
                                                                                                 AFFILIATE DIRECTORS
original 14 members, TML’s membership has                                                                                                     Amanda Campos, City Secretary,
                                                                                                 Lee Battle, Director of Community
grown to more than 1,150 cities. Over 16,000         IMMEDIATE PAST PRESIDENT                    Enhancement, Allen                           Burleson
                                                     Holly Gray-Moore, Mayor Pro Tem,                                                         Texas Municipal Clerks
mayors, councilmembers, city managers,                                                           American Planning Association
                                                     Roanoke                                                                                  Association, Inc.
                                                                                                 Texas Chapter
city attorneys, and department heads are
member officials of the League by virtue of                                                                                                   Lisa Norris, Human Resources/
                                                     PAST PRESIDENTS                             Marissa Ximenez, Councilmember,
                                                                                                                                              Civil Service Director, Grand Prairie
their cities’participation.                          Mary M. Dennis, CMO, Mayor, Live Oak        Floresville
                                                                                                                                              Texas Municipal Human Resources
                                                                                                 Association of Hispanic Municipal
                                                     Jungus Jordan, Mayor Pro Tem,                                                            Association
                                                                                                 Officials
The League provides a variety of services            Fort Worth
                                                                                                                                              Maria Redburn, Library Director, Bedford
to its member cities. One of the principal           Leonard Reed, CMO, Mayor, Willis            Selso A. Mata, Director of Building
                                                                                                                                              Texas Municipal Library Directors
purposes of the League is to advocate                Henry Wilson, Mayor, Hurst                  Inspections, Plano
                                                                                                                                              Association
                                                                                                 Building Officials Association of Texas
municipal interests at the state and federal         Dock Jackson, CMO, Councilmember,
                                                     Bastrop                                                                                  Michael Thane, Director of Utilities,
levels. Among the thousands of bills                                                             Clifford Blackwell, CGFO, Assistant
                                                                                                                                              Round Rock
                                                     Terry Henley, Board of Adjustment           City Manager, Bedford
introduced during each session of the Texas                                                                                                   Texas Municipal Utilities Association
                                                     Member, Meadows Place                       Government Finance Officers
Legislature are hundreds of bills that would                                                     Association of Texas
                                                                                                                                              Brian Frieda, City Manager, Ballinger
affect cities. The League, working through its
                                                     DIRECTORS-AT-LARGE                                                                       Texas Police Chiefs Association
Legislative Services Department, attempts                                                        Robin Mouton, Councilmember,
                                                     Jeff Williams, Mayor, Arlington
                                                                                                 Beaumont                                     Timothy Slifka, Purchasing Manager,
to defeat detrimental city-related bills             Steve Adler, Mayor, Austin                  Texas Association of Black City Council      Southlake
and to facilitate the passage of legislation         Paulette Guajardo, Mayor, Corpus Christi    Members                                      Texas Public Purchasing Association
designed to improve the ability of municipal         Eric Johnson, Mayor, Dallas
                                                                                                 James C. Brown, Chief Information
governments to operate effectively.                  Claudia Lizette Rodriguez,                                                               Erin Hart, Assistant Director of Parks,
                                                                                                 Officer, Lubbock
                                                     Representative, El Paso                                                                  Arts and Recreation Department,
                                                                                                 Texas Association of Governmental
                                                                                                                                              Grand Prairie
The League employs full-time attorneys who           Betsy Price, Mayor, Fort Worth              Information Technology Managers
                                                                                                                                              Texas Recreation and Parks Society
are available to provide member cities with          Martha Castex-Tatum, Vice Mayor
                                                     Pro Tem, Houston                            Steve Rockey, Councilmember,
information on municipal legal matters. On a                                                     Friendswood                                  EX-OFFICIO NON-VOTING INVITED
                                                     Ron Nirenberg, Mayor, San Antonio
daily basis, the legal staff responds to member                                                  Texas Association of Mayors,                 REPRESENTATIVES
                                                                                                 Councilmembers and Commissioners             TML Health Benefits Pool
cities’ written and oral questions on a wide
                                                     REGIONAL DIRECTORS                                                                       Blake Petrash, Mayor Pro Tem,
variety of legal matters. The League annually                                                    Steve Killen, Director of Development
                                                     2-Doyle Robinson, CMO, Mayor,                                                            City of Ganado
conducts a variety of conferences and                Panhandle
                                                                                                 Services, Stephenville
                                                                                                 Texas Association of Municipal Health
training seminars to enhance the knowledge           3-Latrelle Joy, Councilmember,                                                           TML Intergovernmental Risk Pool
                                                                                                 Officials
and skills of municipal officials in the state. In   Lubbock                                                                                  Jeffrey Snyder, City Manager, Plainview
addition, the League also publishes a variety        4-Veronica Baca, Councilmember,             Will Hampton, Communications
                                                                                                 and Marketing Director, Round Rock
of printed materials to assist member cities         Pecos City
                                                                                                 Texas Association of Municipal
in performing their duties. The best known           5-Bill Lindenborn, Commissioner,
                                                                                                 Information Officers
of these is the League’s monthly magazine,           Burkburnett
                                                     6-Robert Brown, Alderman, Menard            Kristina Ramirez, Planning and
Texas Town & City. Each issue focuses on a
                                                     7-Suzanne de Leon, CMO, Mayor,              Development Director, Harker Heights
variety of contemporary municipal issues,                                                        Texas Chapter of American Public Works
                                                     Balcones Heights
including survey results to respond to                                                           Association
                                                     8-Tito Rodriguez, Councilmember,
member inquiries.
                                                     North Richland Hills                        Charles E. Zech, City Attorney,
                                                     9-Ray O’Docharty, Mayor, Groesbeck          Pflugerville, Bee Cave, Wimberley, Prairie
For additional information on any of                 10-Connie Schroeder, CMO, Mayor,            View, Rollingwood, Santa Fe, Leon Valley,
                                                                                                 and Fair Oaks Ranch
these services, contact the                          Bastrop
                                                                                                 Texas City Attorneys Association
Texas Municipal League at 512-231-7400               11-Patrick R. Rios, CMO, Mayor, Rockport
or visit our website, www.tml.org.                   12-Ricardo Villarreal, Mayor, Palmview      Hugh R. Walker, Deputy City Manager,
                                                     13-Rick Grady, Councilmember, Plano         Bryan
                                                                                                 Texas City Management Association

                                                         TEXAS TOWN & CITY •             4      • M AY 2 0 2 1
OFFICIAL PUBLICATION OF THE TEXAS MUNICIPAL LEAGUE MAY 21 VOLUME CVIII NUMBER 5
MESSAGE H FROM THE PRESIDENT

                       KAREN HUNT
                       MAYOR, CITY OF COPPELL
                       TML PRESIDENT

Dear Texas City Official,

This will be my last letter to you in this magazine, as I’m leaving office as Mayor of Coppell on May 11. My entire term as
TML President has been in the virtual world. However, as expected, TML as an organization, its staff, and its members
stepped up to the plate and continued on – for that I am very thankful. While it is time for me to step down from an elected
position, I will not lose interest in all the issues that the League works for – keep up the good fight. Those of you who are
acquainted with me know there will be a “next thing” that I can contribute to. Today, I just do not know what it will be. I will,
purposefully, take a break and then be open to the possibilities. To me, that is exciting! I will miss all of you and if you feel
someone is watching you, I am.

One thing I am especially proud of is how the League has partnered with the Legislature on very important issues
stemming from the COVID-19 pandemic and the winter ice storm. This has been a legislative session like no other, and
TML seized the opportunity to cooperatively push for legislation regarding grid hardening, broadband access, and open
meetings law reform.

But we aren’t out of the woods yet. By the time you get this issue, there will still be a couple of weeks left of work at the
Capitol in Austin. Please make yourself available for calls to action on critical issues like community censorship and debt
restrictions. Check your in-box frequently and keep you cell phone charged—things will be happening fast right up until
midnight on sine die.

I’ll close by reminding you that we started this year with an emphasis on the League’s grassroots, and that is you! Thank
you for your service to the League, to cities, and to our great residents who depend on us.

Karen Hunt
Mayor, City of Coppell
TML President

                                             TEXAS TOWN & CITY •    5   • M AY 2 0 2 1
OFFICIAL PUBLICATION OF THE TEXAS MUNICIPAL LEAGUE MAY 21 VOLUME CVIII NUMBER 5
TML H NEWS
                                                             deals reached, the measures that fell short, and the
                                                             impact the legislation will have on cities. TML staff will
                                                             brief you on the key bills that passed, and explain what
                                                             you need to know to prepare for the laws’ enactment.

                                                             Register     early     to    reserve   your     place    at
                                                             https://tmllegislativeseries.org.

                                                             TML Salary Survey
                                                             The TML Salary survey collects salary information for
                                                             27 common city positions. To access the data, go to
                                                             salarysurvey.tml.org. The site allows you to search by
                                                             region, population, job title, and more. If your city hasn’t
                                                             completed the survey for this year, please contact Rachael
                                                             Pitts at rpitts@tml.org.

                                                             Update Your Membership Information
                                                             Is there someone new at the city, or do you need to update
                                                             an email address? Now is the time to review the information
                                                             we have listed for your city. Staying connected to you is
                                                             our number one priority, and updating your information is
Apply Now for a Municipal Excellence                         simple—go to the TML membership update page.
Award
                                                             Get Training on Demand
The TML Municipal Excellence Awards have been
celebrating and inspiring municipal excellence and           Did you miss the League’s April webinar with Joe Serio
innovation for more than 25 years. Each year, awards are     on Six Powerful Tools for Resilience? You can view this
given in two population categories (cities under 25,000      webinar and other previously recorded training at your
and cities over 25,000) and in five subject categories       leisure through TML On Demand. Access a free or fee-
(city spirit, communication programs, management             based webinar or workshop from the comfort of your home
innovations, public safety, and public works). The           or office. Scroll down to see the list of on demand training
deadline to submit online applications is June 4. For        at https://www.tml.org/218/Texas-Municipal-League-On-
additional details including the application link, visit     Demand.
www.tml.org/210/Municipal-Excellence-Awards.
                                                             Access TML Coronavirus Resources
                                                             The League has a city-specific Coronavirus Resource
Join Us for the Legislative Wrap-Up
                                                             page with links to state disaster orders and guidance,
Get a behind-the-scenes briefing on the outcome of the       TML resources, and state and federal services. Want
major city-related bills from the 87th Texas Legislative     to review the governor’s recent disaster order or read
Session at this one-day, in-person workshop on Monday,       one of the League’s recent daily Coronavirus Updates?
June 21, at the Hilton Austin. You’ll hear about the         Visit www.tml.org/654/Coronavirus-COVID-19-Resources.
                                                             H

                                       TEXAS TOWN & CITY •   6    • M AY 2 0 2 1
OFFICIAL PUBLICATION OF THE TEXAS MUNICIPAL LEAGUE MAY 21 VOLUME CVIII NUMBER 5
Making Healthcare
                         Better For You
Cut your benefit costs this year without
sacrificing quality healthcare

Upgraded pharmacy benefits are just the beginning of
our reinvention of benefits for Texas public employees!
This coming enrollment season, look forward to:

         Better Prices                                                                                            Better Service
         • The best discounts on the cost of                                                                      • Dedicated TML Health
           healthcare with the Blue Cross and                                                                       Account Teams
           Blue Shield of Texas provider network                                                                  • 24/7 employee service from
         • New pharmacy benefits manager                                                                             a Texas-based service team
           allows us to pass savings on to you
           in lower rates

                                                                                                                 Better Health
                                                                                                                 • Expanded wellness benefits
         Better Access                                                                                             and rewards
         • Access to doctors and hospitals                                                                       • Individual health coaching
           wherever you are with the broad Blue                                                                  • “Whole person” approach to
           Cross and Blue Shield of Texas network                                                                  disease management

TML Health Benefits Pool is a non-profit trust organization created by political subdivisions to provide
group benefits services to participating political subdivisions and is not an insurance company.
This contains proprietary and confidential information of TML Health.
Blue Cross and Blue Shield of Texas, a Division of Health Care Service Corporation, a Mutual Legal
Reserve Company, an Independent Licensee of the Blue Cross and Blue Shield Association

                                                                 TEXAS TOWN & CITY •             7       • M AY 2 0 2 1
OFFICIAL PUBLICATION OF THE TEXAS MUNICIPAL LEAGUE MAY 21 VOLUME CVIII NUMBER 5
RISK POOL H NEWS
                                                                 for up to three hours of self-study CLE credit. Please refer
The Texas Municipal League                                       to the State Bar CLE compliance rules for more information.
Intergovernmental Risk Pool
Announces:                                                       The Pool provides financial strength and stability through
                                                                 a partnership with over 2,800 local governments, providing
The “Local Officials: Stronger, Together                         workers’ compensation coverage to over 165,000 public
Podcast Series!”                                                 servants, and protecting more than $48 billion in property.
                                                                 The collective success makes members Stronger, Together,
The Texas Municipal League Intergovernmental Risk Pool
                                                                 demonstrated through the Pool’s core values:
proudly introduces the Local Officials: Stronger, Together
Podcast Series. The Pool is producing this regular podcast
                                                                 •   Public Service: Serving the public good – for the
series, which has been dubbed STP, to help local officials
                                                                     benefit of local governments and their tax-paying
(and managers and staff) understand key operational and
                                                                     citizens.
legal concepts, and the services that the Pool provides. After
arming members with that information, each 15-minute
                                                                 •   Fiscal Responsibility: Responsibly managing our
episode will give easy action items to help keep your
                                                                     members’ pooled funds for the protection of their
citizens, employees, volunteers, and property safe, all while
                                                                     financial stability.
saving public dollars.
                                                                 •   Operational Excellence: Delivering excellent member
As part of each podcast, the Pool’s website (www.tmlirp.org)
                                                                     service in all components of risk financing and loss
will provide written materials with additional information on
                                                                     prevention services.
that episode’s topic. Click the link on the home page to find
the podcasts and materials. Members can also sign up for
                                                                 •   Integrity: Serving with honesty, integrity, and
email notification of new episodes.
                                                                     professionalism.

The first two episodes are about “Local Governments
                                                                 Scott Houston, the Pool’s member liaison, is the podcast
and Firearms: Avoiding a Jam” and explain: (1) a local
                                                                 host. After serving the Texas Municipal League for more
government’s limited authority to regulate where a
                                                                 than 20 years, the last half as general counsel, Scott now
citizen can carry a firearm; and (2) the authority of a local
                                                                 serves as member liaison for the Pool and part-time special
government to prohibit or allow employees with a license
                                                                 counsel to the Texas Municipal League. He has served as
to carry a handgun at work, the potential liability for doing
                                                                 an adjunct professor, been published in the Texas Tech
so, and basics of the Pool’s coverage. Future podcasts will
                                                                 Administrative Law Journal, and has received awards from
include topics on sewage back-ups, cybersecurity, the
                                                                 the American Bar Association, Texas Bar, and International
Pool’s BEST roofing program, and much more.
                                                                 Municipal Lawyers Association. He graduated from Texas
                                                                 A&M University with a degree in political science and, after
City councilmembers can earn up to 19 Texas Municipal
                                                                 studying law in Austria and Argentina, received his law
League Institute CEUs for listening to many of the podcasts.
                                                                 degree from St. Mary’s University School of Law.
To receive CEUs for a particular episode, an elected official
must provide a description of the episode, which must be
                                                                 Questions or comments?              Visit www.tmlirp.org,
educational in nature, pertain to municipal leadership, and
                                                                 call 512-791-4158, or email scott.houston@tmlirp.org. H
should enhance your service as an elected official, for TML
approval. Attorneys who listen to podcasts may be eligible

                                           TEXAS TOWN & CITY •   8    • M AY 2 0 2 1
OFFICIAL PUBLICATION OF THE TEXAS MUNICIPAL LEAGUE MAY 21 VOLUME CVIII NUMBER 5
Take Care of Your
Community by
Maximizing Your
Utility’s Value.

We know many municipal leaders are faced
with the reality of balancing budgets while prioritizing
much-needed community improvements and
maintaining regulatory compliance of their water and
wastewater systems. But the answer to these challenges
might be found in Fair Market Value and a partner like
Aqua Texas.

Texas’ Fair Market Value law enables municipalities and                              Steve Dunnahoe
other utility owners to receive fair market value for the                            Manager, Business Development
sale of their water and wastewater systems. That could                               O: 817.367.1403
mean an increase in the value of these systems that                                  M: 817.822.3779
could be reinvested into community priorities.                                       SMDunnahoe@AquaAmerica.com

Aqua Texas has been serving communities throughout
Texas since 2003. Call us to learn how we can work
together to improve your water and wastewater systems.                               Learn more at WaterByAqua.com

                                          TEXAS TOWN & CITY •   9   • M AY 2 0 2 1
OFFICIAL PUBLICATION OF THE TEXAS MUNICIPAL LEAGUE MAY 21 VOLUME CVIII NUMBER 5
HEALTH POOL NEWS                       H

What Kind of Health Plan Is Right for Your                       employer cost savings of an HMO, but watch the amount
Employees?                                                       of the deductible carefully. An HSA is a tax-advantaged
                                                                 savings account into which the employee can deposit
As you work out your budget for the oncoming fiscal year,        money tax-free, invest it to grow the balance tax-free, and
you may be wondering how to make the best choice on              spend the money tax-free on healthcare expenses. The
the second-biggest line item on many city budgets after          HSA belongs to the employee, and remains with them if
payroll – healthcare.                                            they retire or change jobs.
Which healthcare plan type is right for your employees?          If the employee needs to withdraw money from the HSA
Here are the main options and why you might choose one           for non-healthcare-related expenses, they can do so by
over the other:                                                  paying income tax plus a 20 percent penalty. However, if
                                                                 the employee has a balance remaining in the HSA once
PPO (Preferred Provider Organization)
                                                                 they reach age 65, they can withdraw the money with no
In a PPO, members pay less out of pocket to see any doctor       penalty, paying only income tax. In this way, employees can
in the network, and can pay a higher out of pocket cost to       treat an HSA like an additional retirement benefit.
see an out-of-network healthcare provider. Providers agree
                                                                 Now what was that about watching the amount of the
to discount their services when they join the PPO network,
                                                                 deductible? HSAs can be combined only with qualifying
which helps reduce the cost of medical claims.
                                                                 HDHPs. In 2021, these plans must have a minimum
This option usually offers the most patient choice in-network,   deductible of $1400 for employee-only coverage and
with no primary care referral required to see a specialist.      $2,800 for family coverage, the same as in 2020. The
Because there are limited utilization controls, this is also     upper limit for out of pocket maximum costs is $7,000
often the highest-cost option, both in monthly cost to the       for employee-only coverage and $14,000 for family
employer and in total out of pocket cost for members, but        coverage, both increased from the upper limits in 2020.
also often offers members the ability to keep their doctor(s).
                                                                 However, for 2021, employees cannot contribute more
HMO (Health Maintenance Organization)                            than $3,600 to their HSA for themselves alone or $7,200
                                                                 for family coverage. This means it is possible for the
An HMO manages costs by limiting access to specialists.          employee’s deductible in a single year to be higher than
Employees must choose a primary care doctor, and                 the amount they can contribute that year to their HSA,
cannot see a specialist without a referral. HMOs offer lower     meaning they may have to pay the rest of their deductible
premiums because of the tighter network and control over         out of pocket, and pay income tax on the money they used
utilization, however the tradeoff is less choice of providers.   to do so. To prevent this, consider choosing an HDHP with
                                                                 a deductible that is less than the annual HSA contribution
EPO (Exclusive Provider Organization)
                                                                 limit. Note that employers can contribute to an employee’s
Sometimes called a narrow network, an EPO only covers            HSA directly, offering another way to expand healthcare
care for in-network providers, and normally uses a small         and retirement benefits.
network of local providers who have accepted the most
                                                                 Self-Insured Versus Fully-Insured
cost-effective rates. The disadvantage of having a small
local network is that certain specialties may not be available   In a fully-insured plan, the insurer buys all the risk of health
for complex conditions.                                          claims from the employer, providing first-dollar coverage.
                                                                 However, the insurer also keeps all the rewards of good
HDHPs (High Deductible Health Plans)
                                                                 years with lower healthcare claims, retaining the difference
Combined with an HSA (Health Savings Account)
                                                                 between your premiums and your healthcare costs as profit.
This option can combine the flexibility of a PPO with the

                                           TEXAS TOWN & CITY •   10     • M AY 2 0 2 1
Additionally, as insurers, they are beholden to the 80-85          employees? Consider balancing open access to care from
percent medical loss ratio by law, which means the only            the providers of the employees’ choice against the cost to
way for them to satisfy shareholders by increasing profits         you and your employees. If you need help, consider working
is to increase medical spending regardless of care quality.        with a broker. (And if you want to make sure the broker’s
                                                                   interests are aligned with yours, choose one who works on
A self-insured plan can avoid these challenges. However,           a flat fee or per employee basis rather than a commission,
self-insurance exposes you to substantial risks as well: one       so they work for you and not the insurer.)
very large claim, such as a million dollar cancer treatment
or specialty drug, can wipe out an employer’s budget and           About TML Health Benefits Pool
force the shutdown of the benefit plan.
                                                                   TML Health Benefits Pool offers health benefits created by
Self-insured risk pooling can offset these large risks, by         Texans exclusively for Texas cities and political subdivisions.
distributing the costs of such high-cost claims across many        TML Health brings together hundreds of Texas public
public employers so that each may pay a very small amount          entities to leverage collective purchasing power and risk
in monthly plan cost to absorb the high-cost claim. The risk       sharing to stabilize the cost of health benefits and deliver
pool can also provide stop loss coverage for large claims.         the lowest long- term net costs, while offering additional
The TML Health Pool further mitigates the cost of large            services such as wellness programs, virtual health checkups,
outlier claims by not including them in underwriting when          telemedicine, and online and phone enrollment. By sharing
calculating monthly plan cost.                                     in the Pool, TML Health’s members share the rewards
                                                                   of superior health coverage—lower costs, better health
How to Choose?                                                     outcomes, and more personalized service. H
How do you choose the right plan for your city and your

            Grandscape / The Colony, Texas

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                                                                                            GRAND
                                                                                            SCALE.
                                                                     We’re Olsson, a nationally recognized engineering
                                                                             and design firm with a strong presence in
                                                                                the state. See our work at olsson.com.

                                             TEXAS TOWN & CITY •   11      • M AY 2 0 2 1
CITY LIGHTS   H

Plano Mayor's Summer Internship Program                         experiences, these internships have helped build the vision
                                                                and the skills needed for students to successfully transition
Plano Mayor Harry LaRosilier is passionate about fostering      into college and into future careers. And for participating
a sense of community and delivering what he calls the           companies, the Mayor’s Summer Internship Program has
Plano Promise: “Our City will protect you. Our schools will     proved to be a rewarding investment in the area’s future
educate you, and our community will nurture you.” This has      workforce — showing interns that their hometown is more
inspired the launch of several community initiatives that are   than a starting point, it is a career destination.
designed to touch the lives of children in all continuums of
their life.                                                     To learn more, visit:
                                                                https://planomayorsinterns.org/program.html.

                                                                Mission Strong

                                                                The City of Mission in partnership with more than 30 local
                                                                sponsors, hosted a Community Mass Food Distribution
                                                                in March at the Mission Event Center. Local leaders and
                                                                business owners donated the resources to purchase the
                                                                food from the RGV Food Bank.

Of those initiatives, Mayor LaRosilier is most proud of the
Plano Mayor’s Summer Internship Program, which offers
real-world workplace experience through an eight-week
paid internship to rising juniors and seniors attending a
Plano public school or residing in the City. The program
equips youth with valuable skills not offered to them in
high school, and builds a bridge for the future workforce to
return to Plano.

Since 2014, the inaugural year for the program, over 600
Plano high school students have received internships at         Mission residents drove up to the event to receive 10
small and large companies, nonprofits, and governmental         pounds of chicken, 10 pounds of assorted dry foods, water,
agencies throughout the City. Providing life-changing work      fresh tomatoes, and a coupon for a free haircut. As a COVID-

                                         TEXAS TOWN & CITY •    12     • M AY 2 0 2 1
19 precaution, the food distribution was        program. The winning communities were selected from more than 50 cities
held in drive-thru fashion and volunteers       that applied.
placed the food into each vehicle’s trunk.
                                                “In a year when local leadership was on the frontlines, it should come as
“On top of the devastation caused by            no surprise that cities, towns, and villages are responding to the changing
the winter storm, we are still in the midst     demographics of their communities to make them more welcoming
of a pandemic,” Mayor Dr. Armando               and inclusive,” said NLC President and Councilmember Kathy Maness of
O’Caña said. “I want to thank our staff and     Lexington, South Carolina. “We are excited to celebrate these municipalities
volunteers for their tremendous effort to       that are leading the way in embracing diversity.” H
feed our city. I would also like to thank all
of our partners and sponsors for working
with us to support our families during this
crucial time.”

Arlington Honored with 2021
Cultural Diversity Award

The City of Arlington was one of four
cities honored with the National League
of Cities (NLC) Cultural Diversity Award
for   innovative    programs     promoting
inclusivity   and   diversity.    Selected
as the winner in the 200,001-500,000
population       range,   Arlington     was
recognized for creating and supporting
the Arlington Unity Council.          Other
winning communities included Atlanta,
Georgia (population of 500,001 and more),
Providence, Rhode Island (population of
50,000-200,000), and District Heights,
Maryland (population under 50,000).

The City of San Antonio was a second
place winner in the population of 500,001
and more category for its Mission Marquee
Plaza and Core Grants Program.

NLC’s Cultural Diversity Awards celebrate
programs that support the arts, community
building, and Black history. Submissions
for the awards program were grouped by
size and evaluated for creativity, impact
on the community, and scope of the

                                             TEXAS TOWN & CITY •   13   • M AY 2 0 2 1
SMALL CITIES' CORNER                      H

   #GROWWITHGLENNHEIGHTS:
   PIVOTING THROUGH A
   PANDEMIC, UNEXPECTED
   LOSS, AND A WINTER STORM
   By David Hall, City Manager, and Lauren Lewis, Marketing
   and Communications Manager, City of Glenn Heights

Perfectly positioned along IH-35 East, 20 miles south of downtown      1. Positively frame change management messaging in a
Dallas, the City of Glenn Heights is a hospitable and business-          timely, transparent manner and introduce upcoming
friendly community divided between Dallas and Ellis counties.            projects into the established conversation with ease.
While the City has a total area of 7.2 square miles, we have           2. Introduce new concepts birthed internally while easily
experienced rapid development and growth in the past five years          communicating with community stakeholders through one
thanks to the effects of the southern migration felt in the Dallas-      unified voice.
Fort Worth metroplex. While the growth has been positive for           3. Foster two-way, interactive relationships with residents
our tax base, it has presented growing pains for our community           via digital platforms.
through increased road construction, home construction, and            4. Reach population segments not engaged on social
demand on city services. To overcome these challenges as staff,          media.
we shifted our internal direction, tone, and culture to delivering
excellent citizen-centered services, and then launched an external    Between the 2019 campaign kick-off and February 2020, we
campaign to bring our citizens along for the ride.                    relaunched our website, deployed a text messaging news alert
                                                                      platform to increase government transparency, and launched
In 2019, the Glenn Heights community engagement staff launched        an emergency notification system to stay in touch with residents
the #GrowWithGlennHeights campaign as part of a strategic             during emergencies. We also worked internally to craft content
communications effort to:                                             and engage our followers in dialogue via social media to learn
                                                                      more about how services could be improved upon. Our shift from

                                              TEXAS TOWN & CITY •     14     • M AY 2 0 2 1
a push to pull marketing strategy allowed us
to organically grow our primary Facebook
                                                   Providing Resources for the Community
                                                   In March 2020, just two weeks after the
                                                                                                            What is your
                                                                                                             downtown
business page likes by 135.66 percent              Senior Center opened, staff transitioned
through deploying digital initiatives that         from serving seniors in-person to delivering

                                                                                                             doing for
shifted dialogue from a one-way, top-              daily meals.     Since the transition, program
down message dissemination vehicle                 participation has increased by 300 percent.
to a two-way, conversational concept.              This program, run in partnership with Dallas
The positive response signified viewers
liked and responded well to the intentional
                                                   County, is still operating as a delivery service.
                                                   In late March 2020, community engagement                    you?
engagement tactics deployed on all social          staff began hosting a Facebook Live “Chat
mediums.                                           with the Mayor” session every Friday afternoon
                                                   to discuss COVID-19 and city operations
COVID-19 Pandemic                                  questions with Mayor Harry Garrett and top
On March 2, 2020, the #GrowWithGlennHeights        personnel.
communications plan was expanded to
encompass the adaption of city operations          On April 7, 2020, the Glenn Heights City
in response to the ever-growing crisis now         Council approved a resolution to implement
affecting our community. The city manager          a temporary suspension of late fees imposed
and emergency management personnel                 on residents as the result of late payments of
met and made prepared operations to                all utility bills during the state of local disaster.
become self-sufficient, provide resources
for the community, and establish recovery          On May 13 and 14, 2020, the City hosted our
protections for staff while striving to provide    first contactless parade event “Honks for
excellent customer service.                        Hugs” to recognize the class of 2020 seniors
                                                   and healthcare workers for their dedication
Becoming Self-Sufficient                           and sacrifice to their commitments.
The City purchased fuel tanks to better
                                                                                                           D O W N T O W N R E V I TA L I Z AT I O N
predict and control costs during this unstable     Between June and August of 2020, the City
economic time. Staff purchased generators          established five free COVID-19 testing clinics
and cleaning supplies that were needed to          in partnership with the National Guard, testing                 Increase Tourism
maintain operations while external services        nearly 1,000 people from Glenn Heights and
temporarily shut down or decreased item            surrounding communities.                                Create a Vibrant Atmosphere
production.        Self-contained   breathing
                                                                                                                   Stimulate Retail
apparatuses (SCBA) with voice amplification        Establishing Protections for Staff
personal     protective    equipment     were      Within two weeks of the pandemic’s onset,                  Create a Sense of Place
purchased and distributed to all frontline         all city staff were placed on alternating work
employees including the police, fire, and          schedules and were given virtual access to                     Boost Tax Revenue
public works staff.                                necessary systems. While city facilities were
                                                   closed to the public, virtual platforms such as
Recognizing that just one COVID-19 infection       WhatsApp and Zoom were utilized to allow
could cripple operations, a moratorium was         the public to engage with staff. These virtual
placed on vacation leave and secondary             methods have helped expand our connection                                     CIVIL
employment for four months. These measures         with residents, neighbors, and friends to make                                LANDSCAPE
were taken due to the small staffing size and      our response time more efficient.                                             SURVEY
the prioritization on serving the customers                                                                                      FIND US HERE
within the City.
                                                                                                             817.412.7155 | pkce.com

                                                  TEXAS TOWN & CITY •       15       • M AY 2 0 2 1
and the former deputy city manager. Notable completed projects
                                                                        include the approval of the 2020-2021 budget, construction and
                                                                        paving of city-owned parking lots, major water and street repairs
                                                                        in one of our established neighborhoods, and continuation of
                                                                        the City Center Project.       As 2020 ended and 2021 kicked-off,
                                                                        the City faced political instability as two City Council members
                                                                        unexpectedly resigned, and two separate elections had to be held
                                                                        in November and February to fulfill the duration of their terms.

                                                                        Providing Additional Care for the Community and Staff
                                                                        In January 2021, the City instituted a smart water meter reader
                                                                        program to reduce employee contact, improve water reading
                                                                        efficiency, and reduce staff time spent collecting information.

                                                                        On January 5, 2021, to encourage, support, and incentivize staff
                                                                        to consider getting vaccinated, the City authorized a temporary
                                                                        policy to make a limited paid personal leave available to qualifying
                                                                        employees who suffered adverse reactions to the COVID-19
                                                                        vaccine.      Additionally, the City of Glenn Heights became an
                                                                        authorized vaccine provider.

                                                                        Over the course of the past two years, the Office of Community
                                                                        Engagement sought opportunities to diversify and increase
                                                                        community partnerships with local churches, non-profits, and
                                                                        various social service providers to increase opportunities to assist
                                                                        residents in need.       In addition, this critical time allowed us to
                                                                        build and disseminate various educational materials that have
On April 7, 2020, city officials approved 80 hours of paid work time
                                                                        been issued both digitally, as well as, through hard copies and
for staff to recover from COVID-19 if infected. This swift action was
                                                                        billboards.
implemented prior to the similar federal mandate.

                                                                        Navigating the 2021 Winter Storm
On April 13, 2020, the City of Glenn Heights became the first city in
                                                                        Immediately following the second council election within four
the North Texas region to offer hazard pay to essential staff.
                                                                        months, Glenn Heights weathered the winter weather storm with
                                                                        leadership and essential staff members staying onsite for five
Managing Unexpected Loss
                                                                        consecutive days to ensure that emergency operations were able
While implementing strategic work plans and navigating the
                                                                        to be addressed in a minimal response time.
pandemic, Deputy City Manager Brian Lockley passed away
unexpectedly. He was an integral part of developing and driving
                                                                        During the winter storm, staff produced and posted over 306
change management executions and led the planning and
                                                                        pieces of original content across all city-owned channels to keep
development operations for the City. His loss not only impacted
                                                                        residents weather aware. Public works staff rented an apparatus
staff, but the effects reverberated throughout the community, as
                                                                        to keep arterial roads free and clear of snow while also managing
plans and projects were temporarily halted to pay respect and
                                                                        all water issues and emergency shut offs.
allow staff to redistribute work.

                                                                        Our town, like many other cities across the state, was impacted
Senior staff filled the role of deputy city manager in November
                                                                        by low water pressure and a lack of water flow to homes and
2020 and continued to advance plans laid out by City Manager Hall
                                                                        businesses in addition to rolling power outages. We managed

                                              TEXAS TOWN & CITY •       16      • M AY 2 0 2 1
this crisis by providing constant updates via social   • A new City Center Municipal Complex development scheduled to open first
media, the emergency notification text and email        quarter 2022
system, and hosted our most viewed “Chat with          • An addition of an all-abilities park which will be housed inside the new City
the Mayor” Facebook Live event to allow residents       Center Complex
to ask questions and receive direct answers from       • Approval and construction of the City’s first mixed-use development
our city officials.                                    • Thousands of housing units under development throughout the City
                                                       • New retail growth along one of the City’s recently reconstructed major arterials
Leadership also made accommodations to assist
with social services during this time. The City put    By pivoting communications and operations plans, we were able to increase
up warming centers/shelters in partnership with        City services to assist residents and further expanded the #GrowWithGlennHeights
three local churches, and provided shelf-stable        communications executions. These efforts brought us closer as a community
meals for all senior citizens enrolled in the Senior   when the virus forced us to physically separate.
Congregate Meals Program. Lastly, non-potable
water was distributed to assist residents with         The City of Glenn Heights’ staff and residents have shown the resolve to adjust
plumbing and personal hygiene, and over 20             and adapt during constant uncertainty. Through these efforts over the past two
pallets of bottled water were given to citizens to     years, we hope to convey that Glenn Heights has thrived while continuing to
help during an issued boil-water notice.               provide excellent citizen-centered services to our community. “Grow with Glenn
                                                       Heights” is not just a tag-line, but a mindset.
Since pivot strategies were in place by the time
the winter storm occurred, our small staff of 82       Learn more about our City by visiting glennheightstx.gov. H
personnel was able to navigate this crisis within
the pandemic.

Continuing to Grow

                                                           The
While many businesses and cities were brought to
a screeching halt due to the economic impacts of
the pandemic, not having a large retail base – which

                                                           Right
is normally viewed as a disadvantage – became
an advantage. It allowed us to continue growing,
expand services and communication efforts, and

                                                           Reports.
increase outreach opportunities to residents in
need. Because of our clear, concise, and constant
communications efforts, we have seen an increase

                                                           Right Now.
in media coverage, in issued permits, and have
had record sales tax come into the City.       Even
with setbacks caused by the pandemic and the
2021 winter storm, construction development has
continued, layoffs were not necessary, step raises          To get your

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for staff were issued in addition to hazard pay, and                                               Fund Accounting
minimal operations impacts were felt by customers.                                                 and Payroll Software
                                                            guide visit:
In 2021, the City of Glenn Heights is poised to keep        www.csasoftwaresolutions.com/fundaccounting
growing exponentially, adding resources that will
                                                                        Distributed By
continue to set us apart from our neighbors and
give us more unique branding opportunities. These
key wins include:
                                                                  www.csasoftwaresolutions.com • 800.264.4465

                                               TEXAS TOWN & CITY •     17     • M AY 2 0 2 1
LEGAL H Q&A                                                  By Amber McKeon-Mueller
                                                                    TML Legal Counsel

Q Who supplies water to cities?                                        A Yes. However, all IOUs that serve customers within a
                                                                       city must obtain approval from the city council to change
A There are three main types of water suppliers in Texas.              rates. Tex. Water Code § 13.042(a).
The first type is a public utility, which is also referred to as
an investor owned utility (IOU). Although referred to as a
“public” utility, IOUs are actually for-profit entities owned          Q How does a Class A IOU change water rates within
or operated by a person, corporation, or a combination of              a city?
persons and entities. An IOU is created in compliance with
the Texas Business Organizations Code and the governing
body depends on the type of entity created by the IOU.
                                                                       A    The Class A IOU first must deliver a statement of intent
                                                                       to change rates to each affected customer in the city and
Water supply corporations (WSCs) are the second type                   the city as the regulatory authority at least 35 days before
of water supplier. These are non-profit, member-owned                  the effective date of the proposed change. Tex. Water
and controlled corporations with membership-elected                    Code § 13.187(a-1). The effective date of the new rates
boards. A WSC is created when three or more individuals                must be the first day of a billing period. Id. The statement
make an application to become a private corporation with               of intent must include: (1) the information required by the
the secretary of state. The third type of water supplier               city’s rules; (2) a billing comparison regarding the existing
is a political subdivision, which includes counties, water             water rate and the new water rate computed for the use of:
districts, and cities. A city-owned utility is sometimes               (a) 5,000 gallons of water and (b) 10,000 gallons of water;
referred to as a “municipally owned utility” or MOU. These             (3) a billing comparison regarding the existing sewer rate
are governed by elected boards, councils, or commissions.              and the new sewer rate computed for the use of 5,000
                                                                       gallons, unless the utility proposes a flat rate for sewer

Q What types of IOUs are there?                                        services; and (4) a description of the process by which a
                                                                       ratepayer may intervene in the ratemaking process. Id.
                                                                       After the IOU delivers notice to customers, the IOU files an
A Texas law divides IOUs into four categories based on                 application with the city to change rates. Id. § 13.187(c).
the number of taps or connections: (1) Class A utilities; (2)
                                                                       If the application or the statement of intent is not
Class B utilities; (3) Class C utilities; and (4) Class D utilities.
                                                                       substantially complete or does not comply with the city’s
A Class A utility is a public utility that provides retail water
                                                                       rules, it may be rejected and the effective date of the rate
or sewer utility service through 10,000 or more taps or
                                                                       change may be suspended until a properly completed
connections. Tex. Water Code § 13.002(4-a). A Class B utility
                                                                       application is accepted by the city and a proper statement
provides retail water or sewer utility service through 2,300
                                                                       of intent is provided. Id. § 13.187(d). After written notice to the
or more taps or connections but fewer than 10,000 taps or
                                                                       IOU, the city council may suspend the effective date of the
connections. Id. § 13.002(4-b). A Class C utility provides retail
                                                                       rate change for not more than 90 days from the proposed
water or sewer utility service through 500 or more taps or
                                                                       effective rate. Id. § 13.187(d-1). The city must make a final
connections but fewer than 2,300 taps or connections. Id.
                                                                       determination on the proposed rate before the expiration
§ 13.002(4-c). Finally, a Class D utility provides retail water
                                                                       of the applicable suspension period, or the proposed rate
or sewer utility service through fewer than 500 taps or
                                                                       shall be considered approved. Id.
connections. Id. § 13.002(4-d).
                                                                       The city council must begin a hearing to determine the

Q Can an IOU change retail water rates within a city?                  propriety of the rate change not later than the 30th day
                                                                       after the effective date of the change. Id. § 13.187(f). The

                                              TEXAS TOWN & CITY •      18     • M AY 2 0 2 1
hearing may be informal. Id. § 13.187(g). At the public
hearing, the city’s staff or hired consultants can present            Q How do Class B and Class C utilities change water
findings and make recommendations. The utility may                    rates within a city?
also present its position. Council takes no action during
this hearing. After the hearing, city staff and attorneys
usually prepare a proposed rate ordinance to present to
                                                                      A Class B utilities and Class C utilities use the same
                                                                      process. Tex. Water Code §§ 13.1871, 13.18715. For these
the council. Council approves, modifies, or denies the
                                                                      utilities, the IOU first must deliver a statement of intent
proposed rate ordinance.
                                                                      to change rates to each affected customer in the city
If, after the hearing, the city council finds the rates currently     and the city as the regulatory authority at least 35 days
being charged or those proposed to be charged are                     before the effective date of the proposed change. Id. §
unreasonable or in violation of law, the council determines           13.1875(b). The effective date of the new rates must be
the rates to be charged by the utility and fixes the rates by         the first day of a billing period. Id. The statement of intent
order served on the utility. Id. § 13.187(h).                         must include: (1) the information required by the city’s rules;
                                                                      (2) a billing comparison regarding the existing water rate
If a Class A utility wants to appeal the city council’s               and the new water rate computed for the use of: (a) 5,000
decision, it must file a petition for review with the Public          gallons of water and (b) 10,000 gallons of water; (3) a billing
Utility Commission (PUC) within 30 days after the date of             comparison regarding the existing sewer rate and the new
notice of final decision. Id. § 13.043(a). The Class A utility        sewer rate computed for the use of 5,000 gallons, unless
must also serve copies of the petition on all parties to the          the utility proposes a flat rate for sewer services; and (4) a
original rate proceeding. Id.                                         description of the process by which a ratepayer may file
                                                                      a complaint. Id. After the notice is delivered to customers,
                                                                      the utility files an application with the city to change rates.
                                                                      Id. § 13.1871(d).

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                                                                                       McCreary Veselka Bragg & Allen P.C. Attorneys at Law

                                                TEXAS TOWN & CITY •   19     • M AY 2 0 2 1
If the application or the statement of intent is not substantially      a hearing. Tex. Water Code § 13.1872(e). To do this, the PUC
complete or does not comply with the city’s rules, it may               rules allow a Class D utility to file an application with the PUC
be rejected and the effective date of the rate change may               to request an increase to its tariffed monthly fixed customer
be suspended for not more than 90 days until the utility                or meter charges and monthly gallonage charges by no more
submits a properly completed application and statement of               than five percent. 16 Tex. Admin. Code § 24.49(c). A city has
intent. Id. § 13.1871(e)-(f). The city council must make a final        no role in the procedure under the PUC rules for the Class D
determination on the proposed rate before the expiration                utility’s rates.
of the applicable suspension period, or the proposed rate
                                                                        However, a Class D utility may only adjust its rates under
shall be considered approved. Id. § 13.1871(f).
                                                                        the PUC rules not more than once each calendar year and
The city council may set the matter for hearing on its own              not more than four times between rate proceedings that
motion at any time within 120 days after the effective date             comply with the proceedings for a Class B and Class C
of the rate change. Id. § 13.1871(k). The utility shall mail            utility outlined above. Id. § 24.49(f).
notice of the hearing to each ratepayer before the hearing.
Id. § 13.1871(n). The notice must include a description of
the process by which a ratepayer may intervene in the                   Q How does a WSC change retail water rates?
ratemaking proceeding. Id. Council shall set the matter for
hearing if the council receives a complaint from the lesser
of 1,000 or ten percent of the ratepayers before the 91st day
                                                                        A A WSC is controlled by a board of directors elected by
                                                                        the members or shareholders of the WSC. Tex. Water Code
after the effective date of the rate change. Id. § 13.1871(i). At
                                                                        § 67.0054. This board may vote to change the water rates.
the public hearing, the city’s staff or hired consultants can
                                                                        Affected customers may appeal the rate change to the
present findings and make recommendations. The utility
                                                                        PUC. Tex. Water Code § 13.043. An appeal must be initiated
may also present its position. Council takes no action during
                                                                        within 90 days after the effective date of the rate change. 16
this hearing. After the hearing, city staff and attorneys
                                                                        Tex. Admin. Code § 24.101(b).
usually prepare a proposed rate ordinance to present to the
council. Council approves, modifies, or denies the proposed
rate ordinance.
                                                                        Q How does a city-owned utility change retail water
If, after the hearing, the city council finds the rates currently       rates?
being charged or those proposed to be charged are
unreasonable or in violation of law, the council determines
the rates to be charged by the utility and fixes the rates by
                                                                        A     The city council sets rates that generally cover
                                                                        reasonable operating and maintenance costs, a reserve
order served on the utility. Id. § 13.1871(o).
                                                                        fund, and any loan or bond debt service expenses. In any
If a Class B or Class C utility wants to appeal the city                case, the rates set must be “fair, just, and reasonable.”
council’s decision, it must file a petition for review with the         Tex. Water Code § 13.042. State law provides no specific
PUC within 90 days after the date of notice of final decision.          procedures that a city must follow to increase rates within
Id. § 13.043(a). The utility must also serve copies of the              the city’s limits. A city is permitted to operate and regulate
petition on all parties to the original rate proceeding. Id.            the utility in a manner that protects the interests of the city.
                                                                        Tex. Loc. Gov’t Code § 552.001.

Q How does a Class D utility change water rates within                  If the utility provides service to customers outside the city
                                                                        limits, the city must provide individual written notice of
a city?
                                                                        rate change to each of these customers. Tex. Water Code
                                                                        § 13.043(i). The city has 60 days after the date of the final
A    A Class D utility may change its rates in the same process         decision on a rate change to send notice. Id. The notice
as a Class B utility or Class C utility detailed above. Additionally,   must include, at a minimum, the effective date of the new
a Class D utility may receive an annual rate adjustment without         rates, the new rates, and the location where additional

                                             TEXAS TOWN & CITY •        20       • M AY 2 0 2 1
information on rates can be obtained. Id. The governing
body of a municipally owned utility or a political subdivision         A A CCN is a state-issued monopoly for a specific
may provide the notice electronically if the utility or political      geographic area. A CCN preserves a customer base for a
subdivision has access to a ratepayer’s e-mail address. Id.            utility in order to encourage the service provider to make
                                                                       large capital expenditures for the infrastructure necessary
Customers outside the city may appeal the rate changes to              to provide quality service. The PUC issues this certificate.
the PUC. Tex. Water Code § 13.043(b)(3). After the city council        The CCN obligates the utility to provide continuous and
passes an ordinance setting the rates, those affected                  adequate service to every customer that requests service
customers have 90 days from the effective date of the rate             in that area.
change to file a petition with the PUC. 16 Tex. Admin. Code
§ 24.101(b). The petition must be signed by the lesser of
10,000 or ten percent of the ratepayers whose rates have
been changed and who are eligible to appeal (ratepayers
                                                                       Q Which water suppliers must obtain a certificate of
                                                                       convenience and necessity (CCN)?
residing outside the corporate limits of the city). Id. The
petition must contain for each signatory, among other
things: (1) a clear and concise statement that the petition            A   A CCN is required for an IOU, WSC, and a county district
is an appeal of a specific rate action of the city water or            within 50 miles of the United States-Mexico border. A
sewer service supplier as well as a concise description and            CCN is not required for water utilities run by other political
date of that rate action; (2) the effective date of the decision       subdivisions (including cities), unless they want to serve in
being appealed; and (3) the basis of the request for review            areas where service is already being lawfully provided by
of rates. 16 Tex. Admin. Code § 24.103(a).                             another utility. Tex. Water Code § 13.242.

Customers inside the city may not appeal changed water
rates.

                                                                            Excellence in Engineering
Q Is a city-owned water utility required to provide                                             Since 1946
service to residents outside of city limits?

A    As a general rule, a city has no duty to provide water
service outside its boundaries. City of Livingston v. Wilson,
310 S.W.2d 569 (Tex. Civ. App.—Beaumont 1958, writ ref’d
n.r.e.). There are circumstances, however, where the city
will have the duty to provide service. If a city decides to
                                                                                                           Photo Courtesy of: PB Equipment, Inc.
provide service to one or more customers outside of city
                                                                                                           Wastewater Treatment Plant
limits, then the city has a duty to provide service to other                                                                Sealy, TX
nonresidents who are similarly situated. City of El Paso v.
State Line, Inc., 570 S.W.2d 409 (Tex. Civ. App.—El Paso 1978
writ ref’d n.r.e.). Additionally, a city that holds a certificate of
convenience and necessity (CCN) is generally required to
serve every customer within the certified area, which may
include any area outside its city boundaries. Tex. Water
Code § 13.250.
                                                                                                www.strand.com
Q What is a certificate of convenience and necessity                               10 Locations • 979-836-7937
or CCN?                                                                             Multidisciplinary firm serving
                                                                                    the public and private sector

                                               TEXAS TOWN & CITY •     21      • M AY 2 0 2 1
Q How does a water utility obtain a CCN?                           Q May a city require customers to pay a mandatory fee
                                                                   unrelated to water service on their water bill?
A   A water utility must submit an application for a CCN
to the PUC. The instructions for an application to obtain
                                                                   A No. The Attorney General concluded that imposing an
or amend a CCN are available on the PUC’s website at
                                                                   additional fee on water bills to fund the police department
https://www.puc.texas.gov/industry/water/forms/CCN_
                                                                   was an unconstitutional tax. Tex. Att’y Gen. Op. No. JM-338
Form_PFA.pdf.
                                                                   (1985). The attorney general came to the same conclusion
                                                                   regarding a mandatory fee used to fund volunteer fire

Q What happens if a city-owned utility with a CCN                  fighting services. Tex. Att’y Gen. Op. No. GA-0084 (2003) at
                                                                   9-10. Any fee imposed for the purpose of raising revenue
annexes land?
                                                                   is considered a tax. General law cities have no inherent
                                                                   power to tax. A general law city may only impose a tax if the
A   A city’s CCN does not automatically change when                legislature has specifically bestowed this power through
                                                                   statute. A home rule city also needs authority to impose
the city makes changes to its corporate or extraterritorial
boundaries. The city must file a new application to have           a tax, either by its charter or by statute. Anderson v. City of
these boundary changes included in the CCN.                        San Antonio, 67 S.W.2d 1036 (Tex. 1934).
                                                                   The attorney general also concluded that a general-

Q May a city provide service to a customer located in
                                                                   law city does not have authority to use the water bill to
                                                                   collect dues on behalf of a homeowners association
another utility’s CCN?                                             (HOA). Tex. Att’y Gen. Op. No. KP-0171 (2017). The attorney
                                                                   general found that “HOA dues are unrelated to the City’s

A     Only if expressly permitted by the PUC. A CCN gives a
                                                                   provision of utility services or any other municipal function
                                                                   or purpose, but instead are to be used for the direct benefit
utility an exclusive right to serve the customer base located
                                                                   of individual property owners.”
in the area covered by a CCN. However, there are ways to
take CCN territory from other entities or to achieve dual          A city may, however, request that its customers make a
certification. The PUC may revoke or amend any CCN if it           voluntary contribution via their water bill. For example, the
finds that the certificate holder has never provided, is no        water bill for some cities gives customers the opportunity
longer providing, is incapable of providing, or has failed to      to donate to the city’s animal shelter or a customer
provide continuous and adequate service in the area, or            assistance fund to help city residents who are unable to
part of the area, covered by the certificate; or the certificate   pay their utility bill due to unexpected emergencies. H
holder agrees to allow another retail public utility to provide
service within its service area. Tex. Water Code § 13.254(a).

Q May a city decide to discontinue providing water to a
customer in its ETJ?

A Yes. However, a city must provide reasonable notice of
its intention to do so. City of Livingston v. Wilson, 310 S.W.2d
569 (Tex. Civ. App.—Beaumont 1958, writ ref’d n.r.e.). A city
must generally continue providing water if the area is part
of the city’s CCN or the city is under a contractual duty to
serve the customer.

                                          TEXAS TOWN & CITY •      22    • M AY 2 0 2 1
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