8. Discuss and possible action on proposed FY2027 budget, fee schedule and tax rate. General Manager Kubinski presented the proposed FY2027 budget, which was built on a zero- based budgeting approach. Key highlights included: Tax Rate: The proposed ad valorem tax rate is $0.015899 per $100 of assessed valuation, representing a reduction of approximately 1.7% from the current rate of $0.016118. Because the proposed rate does not raise new tax revenue, the District is not required to hold or publish notice of a public budget hearing. Staffing: The budget includes one new staff hire (a position already filled on a contract basis) and one internal promotion to strengthen the District's technical and database management capacity. Legal Services: Legal costs increased approximately 69%, distributed across General Counsel, Special Counsel, and Legislative Representative. General Manager Kubinski noted he anticipates increased legal activity in coming years. Reserve Funds: The election reserve was increased from $12,000 to $30,000 to prepare for the next election cycle. A legal expense reserve fund was significantly increased, and a vehicle replacement fund was increased to plan for eventual replacement of the District's aging truck. Director Compensation (Line 62): General Manager Kubinski proposed a $100-per-meeting flat fee for Board directors, noting that comparable districts use similar provisions. Director Cofran argued that the increasingly complex nature of the Board's work—involving legal, technical, financial, and regulatory matters—will make it difficult to attract qualified future candidates without some form of compensation, even if current members decline it. Directors Stevens, Sultemeier, and others stated they personally did not wish to receive compensation and preferred to serve on a volunteer basis. After discussion, a consensus emerged among four BPGCD 4 Meeting Minutes: Aug. 20, 2026 of the five directors to remove the line item. General Manager Kubinski confirmed it would be struck from the budget. Fee Schedule: Only changes to out-of-county water testing fees were proposed to the current fee schedule. The District will absorb credit card transaction fees rather than passing them to the public. Grant Funding (Line 33): A $180,000 TWDB grant remains in the budget as a pass-through item. Its inclusion is contingent on resolving agreement issues that supplier raised with the standard TWDB Grant Agreement. Director Sultemeier moved to continue the budget process at the proposed no-new-revenue tax rate of $0.015899 per $100 of valuation, and to instruct the General Manager that publication of a public hearing or budget notice in the newspaper is not required. Director Stevens seconded the motion. The motion carried unanimously. General Manager Kubinski agreed to circulate a revised budget draft by email before the September 10 meeting, at which the full budget, fee schedule, and tax rate will be formally adopted.

Bastiat Liberty & Property Rights Analysis

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 9.1/10). Under the Bastiat Liberty Watchdog Index, voting YES on measures that cap or reduce ad valorem tax burdens, expand taxpayer exemptions, retire debt early, enforce competitive bidding caps, or remove regulatory/zoning barriers to private property rights earns a positive Pro-Liberty score.