March 23, 2026 REGULAR MEETING OF THE CITY COUNCIL OF
THE CITY OF NEDERLAND
5:30 p.m. March 23,2026
1. MEETING
The meeting was called to order at 5:30 p.m.by Mayor Darby at the Nederland City Office
Building,207 N. 12th Street,Nederland, Texas. See attached for quorum.
The following statement was posted:
"PURSUANT TO SECTION 30.07, PENAL CODE (TRESPASS BY LICENSE
HOLDER WITH AN OPENLY CARRIED HANDGUN), A PERSON LICENSED
UNDER SUBCHAPTER H, CHAPTER 411, GOVERNMENT CODE (HANDGUN
LICENSING LAW), MAY NOT ENTER THIS PROPERTY WITH A HANDGUN
THAT IS CARRIED OPENLY."
2. INVOCATION AND PLEDGES OF ALLEGIANCE
The invocation and Pledges of Allegiance were led by Mayor Pro Tern Ortiz.
3. The agenda was modified with Item 5 (Fiscal Year 2024-2025 Audit Presentation)moved
to position 3, followed by citizen comments as Item 4 and the consent agenda as Item 5.
Christa Wofford of Mitchell T. Fontenote CPA, Inc. was present to review the Fiscal year
2024-2025 audit report. She summarized the auditor's report and stated it was a clean,
unmodified opinion with no exceptions found during testing.
4. CITIZEN COMMENTS
Ms. Laura Smith, 1208 Ave C, addressed civility in city government. She stated we must
communicate our points of view with civility on both sides.
Jackie Toups, 613 North 14th Street, addressed concerns about board members speaking in
dual capacities and raised concerns about council members who serve on the EDC.
Greg Miller, 1404 Helena Avenue, inquired about the role of Taylor Shelton with the city.
He raised concerns about incidents in the Public Works Department and questioned
staffing priorities.
Curtis Stratton, 703 South Willow Street, expressed concerns about decisions being made
and stated employees of this city need to be respected.
Minutes continued, March 23, 2026
Angela Fanette, 1016 N 31st Street, stated her belief that an infrastructure committee
should not be an ad hoc committee and emphasized the need for proper records.
Jolei Shipley, 8765 Holmes Rd.,raised concerns about a replat issue on Boston Avenue
and potential legal concerns that should be addressed transparently.
5. CONSENT AGENDA - All consent agenda items listed are considered to be routine by
the City Council and will be enacted by one motion. There will be no separate discussion
of these items unless a councilmember so requests, in which event the item will be
removed from the Consent Agenda and considered separately.
A motion was made by Councilmember Duplant and seconded by Councilmember Jones to
approve the Consent Agenda Items "a through c" as presented. MOTION CARRIED.
AYES: Mayor Darby,Councilmembers Duplant,Jones, Sonnier,and Ortiz.
NOES: None.
ATTENDING VIA ZOOM: Councilmember Sonnier.
a. Approve minutes of March 9, 2026 regular meeting.
b. Accept departmental reports for February 2026.
c. Accept Tax Assessor Collection Report for February 2026.
6. REGULAR AGENDA
UNFINISHED BUSINESS
a. City Manager, Manuel De La Rosa, provided a comprehensive update on public works
and engineering projects, stating the engineering firms will be providing progress
reports by the 7th day of each month. He emphasized that these progress reports would
be posted online for public access. He detailed the status of bond issuances and
reviewed specific project updates on the Nederland Water Plant Clarifier Number 1,
Nederland Sewer Line Rehabilitation (Western 20%), Nederland Lift Station
Rehabilitation project, Nederland Wastewater Treatment Plant Facility Assessment and
the Nederland Wastewater Treatment Plant Centrifuge Replacement. Mr. De La Rosa
addressed staffing concerns and emphasized the importance of capital improvement
planning.
NEW BUSINESS
b. Discussion was held regarding the programming and design services agreement with
PGAL for the 1308 Boston Avenue building.
City Manager, Manuel De La Rosa, outlined the renovation project for a future city hall.
The building is two-story with 18,000 square feet. This renovation would allow more
room for our staffing.
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Minutes continued, March 23, 2026
Councilmember Jones outlined multiple benefits of the proposal which included adding
adequate space for public attendance at meetings,returning public property to tax rolls
(both current city hall and Hanson Building), consolidating all departments in a single
building,reducing insurance and windstorm costs by maintaining one commercial
building instead of three,providing professional workspace for staff, and no increase in
tax rate as it could be financed with cash.
A motion was made by Mayor Pro Tem Ortiz and seconded by Councilmember Sonnier
to postpone Item 6.b —Agreement with PGAL for programming and design services of
the building at 1308•Boston Avenue until the April 20, 2026 council meeting for further
information. MOTION CARRIED.
AYES: Mayor Darby,Councilmembers Duplant,Jones,Sonnier,and Ortiz.
NOES: None.
ATTENDING VIA ZOOM: Councilmember Sonnier.
c. A motion was made by Mayor Pro Tem Ortiz and seconded by Councilmember Duplant
to approve Resolution No. 2026-04 on second reading, ratifying the action of the
Nederland Economic Development Corporation Board of Directors related to the
$27,500 incentive offered to Wicked Casian with a 2-year payback period. MOTION
CARRIED.
AYES: Mayor Darby, Councilmembers Duplant,Jones,Sonnier,and Ortiz.
NOES: None.
ATTENDING VIA ZOOM: Councilmember Sonnier.
d. A motion was made by Councilmember Jones and seconded by Councilmember
Sonnier to approve Resolution No. 2026-05, amending the authorized account
signatories for the City's TexPool Investment Account. MOTION CARRIED.
AYES: Mayor Darby,Councilmembers Duplant,Jones,Sonnier,and Ortiz.
NOES: None.
ATTENDING VIA ZOOM: Councilmember Sonnier.
e. A motion was made by Councilmember Jones and seconded by Councilmember
Duplant to approve an Interlocal Agreement with the Nederland Independent School
District regarding financial assistance of the summer recreation program, reimbursing
NISD up to 50% of the cost, not to exceed$25,000. MOTION CARRIED.
AYES: Mayor Darby,Councilmembers Duplant,Jones,Sonnier,and Ortiz.
NOES: None.
ATTENDING VIA ZOOM: Councilmember Sonnier.
f. A motion was made by Councilmember Jones and seconded by Mayor Pro Tern Ortiz to
accept the resignation of Gary Tiner from the Civil Service Commission for the term
ending June 30,2026. MOTION CARRIED.
AYES: Mayor Darby,Councilmembers Duplant,Jones,Sonnier,and Ortiz.
NOES: None.
ATTENDING VIA ZOOM: Councilmember Sonnier.
City Manager De La Rosa explained this item was before council to properly accept a
3
Minutes continued, March 23, 2026
resignation that had occurred verbally in January 2026 but was not received in writing
until March. Since the term only extends through June 30th, the city is advertising and
accepting applications to fill the position at this time.
g. A motion was made by Councilmember Duplant and seconded by Councilmember
Jones to approve a contract renewal with the YMCA for the Operation of the Nederland
,Swimming Pool. MOTION CARRIED.
AYES: Mayor Darby,Councilmembers Duplant,Jones,Sonnier, and Ortiz.
NOES: None.
ATTENDING VIA ZOOM: Councilmember Sonnier.
City Manager De La Rosa stated the city will begin looking at in-house certifying of
lifeguards for summer 2027 season.
h. A motion was made by Councilmember Duplant and seconded by Mayor Pro Tem Ortiz
to approve a contract extension with CrowderGulf for debris removal and emergency
response products, equipment and services. MOTION CARRIED.
AYES: Mayor Darby,Councilmembers Duplant,Jones,Sonnier,and Ortiz.
NOES: None.
ATTENDING VIA ZOOM: Councilmember Sonnier.
i. A motion was made by Mayor Pro Tern Ortiz and seconded by Councilmember Jones to
approve a contract extension with Debristech, LLC for disaster debris monitoring
services. MOTION CARRIED.
AYES: Mayor Darby,Councilmembers Duplant,Jones,Sonnier, and Ortiz.
NOES: None.
ATTENDING VIA ZOOM: Councilmember Sonnier.
7. EXECUTIVE SESSION
The regular meeting was recessed at 7:35 p.m. by Mayor Darby for the purpose of
conducting an Executive Session as authorized by Texas Government Code,
Consultation with Attorney—Tex. Gov't Code, Section 551.071.
8. RECONVENE
The regular meeting was reconvened at 7:46 p.m. by Mayor Darby. He announced the
Executive Session was held for informational purposes only and no action is necessary.
9. COUNCILMEMBERS AND CITY MANAGER COMMENTS
City Manager De La Rosa announced the upcoming retirement of Building Official George
Wheeler. Jacob Pitts will be placed in the Interim Building Official position for a
probationary period of 60 days.
Mr. De La Rosa stated that Taylor Shelton is currently employed as a working consultant
for the city regarding public works projects.
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Minutes continued, March 23, 2026
10. ADJOURN
There being no further business Mayor Darby adjourned the meeting at 7:51 p.m.
-y'. D,4my,Mayor
City of Nederland, Texas
ATTEST:
ac UV 1 v2w
Joni nderwood, City Clerk
City of Nederland, Texas
o il • _`
SOF
5
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
Jeffrey P. Darby Mayor �✓
Bret Duplant Council Member—Ward I ✓
Britton Jones Council Member—Ward II
Randy Sonnier Council Member—Ward III /vial zoom
Jeff Ortiz Council Member—Ward IV
Manny De La Rosa City Manager ✓
Joni Underwood City Clerk
Richard Hughes City Attorney
Heather Stucker Director of Finance
Rod Carroll Police Chief, ✓
Terry Morton. Fire Chief
Dannie Davis Interim Director of Public Works
George Wheeler Building Official
Jacob Pitts Inspections Adm.Secretary
Molli Hall Librarian V
Stephanie Gaspard Human Resources Director
Toby Latiolais Parks Director
effrey P. Darby, Mayor
4 , - ludekAikef
Joni Un rwood,City Clerk
Date
MITCHELL T FONTENOTE CPA, INC.
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the City Council
City of Nederland,Texas
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City
of Nederland, Texas, as of and for the year ended September 30, 2025, and the related notes to the financial statements,
which collectively comprise the City of Nederland,Texas's basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities,the business-type activities,the aggregate discretely presented component units,each
major fund, and the aggregate remaining fund information of the City of Nederland,Texas, as of September 30, 2025, and
the respective changes in financial position and,where applicable, cash flows thereof for the year then ended in accordance
with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of the City of Nederland,Texas,and to meet our other
ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting
principles generally accepted in the United States of America,and for the design, implementation,and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,considered
in the aggregate, that raise substantial doubt about the City of Nederland,Texas's ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise substantial
doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable
assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted
in accordance with generally accepted auditing standards will always detect a material misstatement when it exists.The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered
material if there is a substantial likelihood that,individually or in the aggregate,they would influence the judgment made by a
reasonable user based on the financial statements.
2428 NALL.STREET, PORT NECHES. TX 77651 TELEPHONE: 409722-6300
In performing an audit in accordance with generally accepted auditing standards,we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements,whether due to fraud or error,and
design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,
evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of
Nederland,Texas's internal control.Accordingly,no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management,as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City of Nederland,Texas's ability to continue as a going concern for a reasonable period
of time.
We are required to communicate with those charged with governance regarding,among other matters,the planned scope and
timing of the audit,significant audit findings,and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and
analysis, schedule of changes in total pension liability and related ratios, schedule of employer contributions— pension plan,
schedule of changes in total OPEB liability and related ratios budgetary comparison information be presented to supplement
the basic financial statements. Such information is the responsibility of management and, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board,who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic,or historical context.We
have applied certain limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management's responses to our inquiries, the
basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of
Nederland,Texas's basic financial statements.The combining and individual nonmajor fund financial statements are presented
for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and other records used
to prepare the basic financial statements.The information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion,the combining and individual nonmajor fund financial statements are fairly stated, in
all material respects,in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the
introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our
opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form
of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider
whether a material inconsistency exists between the other information and the basic financial statements, or the other
information otherwise appears to be materially misstated. If, based on the work performed,we conclude that an uncorrected
material misstatement of the other information exists,we are required to describe it in our report.
VierCkee , Cft `ptite e /4, 104.
Port Neches,Texas
March 23,2026
I
CITY OF NEDERLAND EXHIBIT A
STATEMENT OF NET POSITION
SEPTEMBER 30,2025
Primary Government Component Unit
Business- Nonmajor
Governmental Type Component
Activities Activities Total Unit
ASSETS
Current assets:
Cash and Cash Equivalents $ 5,009,410 $ 3,328,728 $ 8,338,138 $ 199,139
Investments-Current 44,590,217 16,082,789 60,673,006 7,537,856
Taxes Receivable, Net 418,948 - 418,948 81,729
Accounts Receivable, Net 815,189 982,863 1,798,052 -
Due from Other Funds 512,937 - 512,937 78,513
Due from Other Governments 662,713 - 662,713 -
Due from Others 94,317 - 94,317 -
' Inventories - 454,486 454,486 -
Prepaids Items 207,127 218,389 425,516 -
Total current assets 52,310,858 21,067,255 73,378,113 7,897,237
Noncurrent assets:
Cash and Cash Equivalents - 637,133 637,133 -
Investments - 955,643 955,643 -
Capital Assets:
Land Purchase and Improvements 3,250,664 - 3,250,664 1,614,526
Infrastructure and Improvements, Net 31,615,290 15,503,028 47,118,318 -
Buildings, Net 6,878,516 8,459,410 15,337,926 1,835,603
Machinery and Equipment, Net 3,171,384 2,439,011 5,610,395 7,431
Right-to-Use Leased Assets, Net 15,024 - 15,024 -
SBITA Asset,Net 82,390 - 82,390 -
Construction in Progress _ 8,281,95.3 1,978,099 10,260,052 -
L Total Pension Asset 2,379,096 _ 1,037,987 3,417,083 59,096
Total noncurrent assets 55,674,317 31,010,311 86,684,628 3,516,656
Total assets 107,985,175 52,077,566 160,062,741 11,413,893
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Related to Pension Plan 588,992 260,425 849,417 14,630
Deferred Outflows Related to OPEB 154,368 64,484 218,852 25,402
Total Deferred Outflows of Resources 743,360 324,909 1,068,269 40,032
The accompanying notes are an integral part of this statement.
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1,
CITY OF NEDERLAND EXHIBIT A
STATEMENT OF NET POSITION
SEPTEMBER 30, 2025
Primary Government Component Unit
Business- Nonmajor
Governmental Type Component
Activities Activities Total lint
LIABILITIES
Current liabilities:
Accounts Payable $ 517,049 $ 284,890 $ 801,939 $ 484
Wages and Salaries Payable 246,955 69,573 316,528 -
Compensated Absences Payable 319,419 83,158 402,577 -
Refundable Customer Deposits - 955,643 955,643 -
Retainage Payable 53,717 32,253 85,970 -
Intergovernmental Payable 75,638 - 75,638 -
Due to Other Funds 78,513 512,937 591,450 -
Accrued Interest Payable 57,652 - 57,652 -
Unearned Revenues 979,398 - 979,398 5,775
Right-to-Use Lease Payable 6,572 - 6,572 -
SBITA Liability-Current 16,675 - 16,675 -
Bonds Payable -Current 2,482,821 260,000 2,742,821 -
Total current liabilities 4,834,409 2,198,454 7,032,863 6,259
Noncurrent liabilities:
Bonds Payable -Noncurrent 17,373,751 7,815,969 25,189,720 -
Compensated Absences 479,129 81,147 560,276 -
Right-to-Use Lease Payable 8,881 - 8,881 -
SBITA Liability-Noncurrent 16,415 - 16,415 -
Total Pension Liability - - - -
Total OPEB Liability 1,063,306 444,167 1,507,473 174,973
Total noncurrent liabilities 18,941,482 8,341,283 27,282,765 174,973
Total Liabilities 23,775,891 10,539,737 34,315,628 181,232
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Pension Plan 1,356,372 591,777 1,948,149 33,692
Deferred Inflows Related to OPEB 173,596 72,515 246,111 28,566
Total Deferred Inflows of Resources 1,529,968 664,292 2,194,260 62,258
NET POSITION
Net Investment in Capital Assets 49,349,412 20,563,579 60,319,491 3,516,656
Restricted for:
Restricted for Debt Service 76,076 149,496 225,572 -
Restricted for Other Funds 288,811 - 288,811 -
Unrestricted 33,708,377 20,485,371 63,787,248 7,693,779
Total Net Position $ 83,422,676 $ 41,198,446 $124,621,122 $ 11,210,435
The accompanying notes are an integral part of this statement.
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CITY OF NEDERLAND EXHIBIT C
BALANCE SHEET-GOVERNMENTAL FUND
SEPTEMBER 30,2025
Total
General Debt Service Capital Other Governmental
Fund Fund Projects Funds Funds
ASSETS
Cash and Cash Equivalents $ 3,213,180 $ 39,555 $ 1,534,742 $ 221,933 $ 5,009,410
Investments-Current 27,828,789 215,970 16,408,545 136,913 44,590,217
Taxes Receivable 358,642 146,115 - - 504,757
Allowance for Uncollectible Taxes (60,969) (24,840) - - (85,809)
Accounts Receivable,Net 562,891 - - 19,753 582,644
Due from Other Governments 6,997 2,093 653,623 - 662,713
Due from Others 94,317 - - - 94,317
Due from Other Funds 1,411,223 - - - 1,411,223
Due from Component Unit - - - - -
Prepaids Items 204,370 - - 2,757 207,127
Total Assets $ 33,619,440 $ 378,893 $ 18,596,910 $ 381,356 $ 52,976,599
LIABILITIES
Accounts Payable $ 476,661 $ - $ - $ 40,388 $ 517,049
Wages and Salaries Payable 246,955 - - - 246,955
Retainage Payable - - 53,717 - 53,717
Intergovernmental Payable 75,638 - - - 75,638
Due to Other Funds - 117,474 775,812 5,000 898,286
Due from Component Unit 78,513 - - - 78,513
Unearned Revenues 932,241 - - 47,157 979,398
Total Liabilities 1,810,008 117,474 829,529 92,545 2,849,556
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue-Property Taxes 297,673 121,275 - - 418,948
Total Deferred Inflows of Resources 297,673 121,275 - - 418,948
FUND BALANCES
Nonspendable Fund Balance:
Prepaid Items 204,370 - - - 204,370
Restricted Fund Balance:
Capital Acquisition and
Contractual Obligation 936,965 - 8,370,046 - 9,307,011
Retirement of Long-Term Debt - 140,144 - - 140,144
Other Restricted Fund Balance - - - 288,811 288,811
Committed Fund Balance:
Other Committed Fund Balance - - 9,397,335 - 9,397,335
Assigned Fund Balance:
Other Assigned Fund Balance 5,264,539 - - - 5,264,539
Unassigned Fund Balance 25,105,885 - - - 25,105,885
Total Fund Balances 31,511,759 140,144 17,767,381 288,811 49,708,095
Total Liabilities,Deferred Inflows,
and Fund Balances $ 33,619,440 $ 378,893 $ 18,596,910 $ 381,356 $ 52,976,599
The accompanying notes are an integral part of this statement.
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CITY OF NEDERLAND EXHIBIT D
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2025
Total
General Debt Service Capital Other Govemmental
Fund Fund Projects Funds Funds
REVENUES:
Taxes:
Property Taxes $ 5,485,612 $ 1,865,739 $ - $ - $ 7,351,351
Sales Tax 6,185,771 - - - 6,185,771
In Lieu of Tax Contracts 3,558,160 - - - 3,558,160
Other Taxes 1,124,853 - - 150,970 1,275,823
Penalty and Interest on Taxes 66,452 24,112 - - 90,564
Grants and Private Contributions 2,287,831 - 1,062,480 87,408 3,437,719
Forfeitures - - - - -
Charges for Services 209,790 - - - 209,790
Fines and Court Costs 426,067 - - 8,557 434,624
Investment Earnings 1,407,475 9,906 797,429 13,939 2,228,749
Other Revenue 118,385 - - 5,147 123,532
Total Revenues 20,870,396 1,899,757 1,859,909 266,021 24,896,083
EXPENDITURES:
Current:
General Government 1,907,545 - 1,076,091 - 2,983,636
Public Safety 8,990,806 - 715,445 64,185 9,770,436
Public Works 3,176,720 - 1,134,181 - 4,310,901
Culture and Recreation 2,294,631 - - 225,112 2,519,743
Adrrinistrative and General 852,628 - - - 852,628
Debt Service: -
Principal on Debt - 2,330,000 - - 2,330,000
Interest on Debt - 1,037,611 - - 1,037,611
Other Debt Service - 2,600 - - 2,600
Capital Outlay: -
Capital Outlay - - 4,500 - 4,500
Total Expenditures 17,222,330 3,370,211 2,930,217 289,297 23,812,055
Excess(Deficiency)of Revenues
Over(Under)Expenditures 3,648,066 (1,470,454) (1,070,308) (23,276) 1,084,028
OTHER FINANCING SOURECES(USES):
Transfers In 485,000 1,522,400 975,000 - 2,982,400
Transfers Out (975,000) - (537,170) - (1,512,170)
Total Other Financing Sources(Uses) (490,000) 1,522,400 437,830 - 1,470,230
Net Change in Fund Balances 3,158,066 51,946 (632,478) (23,276) 2,554,258
Fund Balance-Beginning 28,353,693 88,198 18,399,859 312,087 47,153,837
Fund Balance-Ending $ 31,511,759 $ 140,144 17,767,381 $ 288,811 $ 49,708,095
The accompanying notes are an integral part of this statement.
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CITY OF NEDERLAND EXHIBIT G
STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN FUND NET POSITION—
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2025
Business-Type Activities-Enterprise Funds
Water and Solid Total
Sewer Waste Enterprise
Fund Fund Funds
OPERATING REVENUES:
Charges for Water Services $ 2,943,555 $ - $ 2,943,555
Charges for Sewerage Services 3,802,930 - 3,802,930
Charges for Sanitation Services - 1,907,270 1,907,270
Penalties and Interest 179,523 - 179,523
Other Revenue 21,404 791 22,195
Total Operating Revenues 6,947,412 1,908,061 8,855,473
OPERATING EXPENSES:
Other Operating Costs
Water Treatment 1,304,110 - 1,304,110
Water and Sewer Distribution 900,682 - 900,682
Wastewater Treatment 1,549,743 - 1,549,743
Billings and Collections 451,892 - 451,892
Solid Waste - 1,121,135 1,121,135
Other Operating Expenses 5,359 - 5,359
Total Other Operating Costs 4,211,786 1,121,135 5,332,921
Depreciation 2,024,732 342,975 2,367,707
Total Operating Expense _, _ _____ 6,236,518 1,464,110 7,700,628
Operating Income --- 710,894 443,951 1,154,845
NONOPERATING REVENUES (EXPENSES):
Investment Earnings 610,622 203,836 814,458
Grant 821,109 - 821,109
Interest Expense - - -
Bond Fees (71,847) - (71,847)
Total Nonoperating Revenue (Expenses) 1,359,884 203,836 1,563,720
Income Before Transfers 2,070,778 647,787 2,718,565
Transfers In 830,609 781,536 1,612,145
Transfers Out (2,190,839) (891,536) (3,082,375)
Change In Net Position 710,548 537,787 1,248,335
The accompanying notes are an integral part of this statement.
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CITY OF NEDERLAND
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
TEXAS MUNICIPAL RETIREMENT SYSTEM
FOR THE YEAR ENDED SEPTEMBER 30, 2025
FY 2025 FY 2024 FY 2023 FY 2022
Plan Year Plan Year Plan Year Plan Year
A.Total Pension Liability 2024 2023 2022 2021
Service Cost $ 1,688,313 $ 1,528,879 $ 1,485,250 $ 1,434,956
Interest(on the Total Pension Liability) 4,466,458 4,371,361 4,237,503 4,104,309
Changes of Benefit Terms - - - -
Difference between Expected and
Actual Experience 324,169 253,205 345,929 (180,908)
Changes of Assumption - (331,743) - -
Benefit Payments,Including Refunds
of Employee Contributions (4,504,961) (4,480,186) (3,734,652) (3,085,877)
Net Change in Total Pension Liability 1,973,979 1,341,516 2,334,030 2,272,480
Total Pension Liability- Beginning 67,578,068 66,236,552 63,902,522 61,630,042
Total Pension Liability- Ending $ 695552,047 $ 67,578,068 $ 66,236,552 $ 63,902,522
B.Total Fiduciary Net Position
Contributions- Employer $ 823,298 $ 726,927 $ 739,675 $ 698,036
Contributions- Employee 768,413 709,692 688,527 663,893
Net Investment Income 7,125,548 7,441,350 (5,247,121) 8,498,513
Benefit Payments, Including Refunds
of Employee Contributions (4,504,961) (4,480,186) (3,734,652) (3,085,877)
Administrative Expenses (45,889) (47,501) (45,516) (39,402)
Other (1,074) (332) 54,315 270
Net Change in Total Pension Liability 4,165,335 4,349,950 (7,544,772) 6,735,433
Total Pension Liability- Beginning 68,862,891 64,512,941 72,057,713 65,322,280
Total Pension Liability- Ending $ 73,028,226 $ 68,862,891 $ 64,512,941 $ 72,057,713
LC.Total Pension Liability(Asset) $ (3,476,179) $ (1,284,823) $ 1,723,611 $ (8,155,191)
D. Plan Fiduciary Net Position as as
Percentage of Total Pension Liabiity 105.00% 101.90% 97.40% 112.76%
E.Covered-employee Payroll $ 10,977,326 $ 10,138,458 $ 9,836,096 $ 9,484,179
F Total Pension Liability (Asset)as a
Percentage of Covered-employee
Payroll -31.67% -12.67% 17.52% -85.99%
Note:GASB 68,Paragraph 46,a and b requires that the data in this schedule be presented for the time period Covered-employee by the
measurement date rather than the govemnoental entity's current fiscal year.
Note:There are no assets accumulated in a trust.
Note:Only nine years of data are presented in accordance with GASB 68,paragraph 138.'The information for all periods for the 10-year
schedules that are required to be presented as required supplerrentary information may not be available initially.In these cases,during
the transition period,that information should be presented for as rreny years as are available.The schedules should not indude
information that is not measured in accordance with the requirements of this Statement.
-58-
E
City of Nederland Water Plant Clarifier #1
Client Name: City of Nederland
Subject: Progress Report
Created By:Trey Clasper Westvvood
Westwood No.: R0043842.00
Date: 3/18/2026
Work in Progress:
-Scheduled to install the two chemical feed lines for the chlorine and ammonia injection points on
3/18/26
-Filling Clarifier#1 and confirming operation of the rake,mixer,and the sludge drain before it is put online
Work to be completed by next Progress Report:
-WPS & Electrical subconsultant to complete substantial completion site visit
-Substantial completion inspection and punch list generation
-Request and receive final paperwork from Contractor
Updates to the Schedule:
-No updates
Project Notes/Questions:
-None at this time.
1
i
City of Nederland Wastewater Rehab West
Client Name: City of Nederland
Subject: Progress Report
Created By:Jim Roberts, PE
Westwood No. 69501.00 Westwood
Date:3/19/26
Work in Progress:
-Held kickoff meeting at both lift station with City staff and subs on February 11.
-Received and reviewing video on Phase 1 section.Very few blockages observed.
-Video contractor AIMS is onsite in Phase 2 area, north of Helena.
-Street layout for Phase 1 section set up for design.
Work to be completed by next Progress Report:
-Complete review of Phase 1 section. Review results with City.
-Begin design of Phase 1 section.
-Coordinate with SPI on hydraulic analysis for Phase 1 section.
-Continue Phase 2 video.
-Update schedule format.
Updates to the Schedule:
-See schedule below.
Project Notes/Questions:
-None at this time.
SCHEDULE
ACTIVITY PHASE 1 PHASE 2
Kick-off Meeting 2/11/26
Clean&Televise Lines-Part 1 2/11/26
Review Video w/Client-Part 1 3/23/26 3/23/26
Clean&Televise Lines-Part 2, Begin Design 3/3/26
Review Video w/Client-Part 2 3/31/26
Clean&Televise Lines-Part 3 4/14/26
Review Video w/Client-Part 3 4/28/26
Clean&Televise Lines-Part 4 5/12/26
Review Video w/Client-Part 4 5/26/26
Design-60% Plans 4/20/26 6/9/26
_City Review-60% Plans 5/4/26 6/23/26
Design-90% Plans 6/15/26 8/4/26
City Review-90% Plans 6/29/26 8/18/26
Design- 100% Plans 7/27/26 9/15/26
City Review- 100% Plans 8/10/26 9/29/26
Bidding 10/5/26 11/24/26
Construction 1/25/27 11/23/27
City of Nederland Lift Station Rehab
Client Name: City of Nederland
Subject: Progress Report
Created By:Jim Roberts, PE
Westwood No. 43731.00 ��� ®®
Date:3/19/2026
Work in Progress:
-Held kickoff meeting at both lift station with City staff and subs on February 11.
-Received survey from SouTex for both Canal Ave and Nederland Ave lift stations.
-Reviewed surveys with City and SouTex for clarifications and requested additional information.
Work to be completed by next Progress Report:
-SouTex to get additional survey information on both stations.
-Review survey information, make design recommendation to City.
-Begin design of Canal Ave lift station
-Update schedule format.
Updates to the Schedule:
-See attached schedule.
Project Notes/Questions:
-None at this time.
SCHEDULE
Activity Each Lift Station Estimated
Completion
Notice-To-Proceed 2/6/26
Site Visit&Coord Survey&SUE 2/11/26
Topo Survey 3/11/26
Conceptual Design Submittal-After Survey(30%) 5/1/26
City Review(30%) 5/15/26
Preliminary Design Submittal (60%) 6/26/26
City Review(60%) 7/10/26
Bid Ready Submittal (90%) 8/7/26
Final Client Review Complete 8/21/26
Final Plans Complete (100%) 9/4/26
Bidding &Award 10/30/26
,Begin Construction w/NTP 11/6/26
Complete Construction (Estimate, per Station) 5/7/27
Record Drawings 5/21/27
City of Nederland WWTP Facility Assessment
Client Name: City of Nederland
Subject: Progress Report
Created By:Simone King, PE Westwood
Westwood No.: R0043842.04
Date: 3/18/2026
Work in Progress:
-Initial field reconnaissance/site visit completed on March 15,2026 by Westwood staff (Jacob Valentien,
Simone King,and Trey Glasper).
-The project team is reviewing photos and collected data to assess existing conditon of wastewater
treatment processes.
-Wastewater treatment facility record drawings have been collected and scanned into a PDF file.
-Coordination with electrical subconsultant is in progress.
Work to be completed by next Progress Report:
-Electrical subconsultant to complete initial field reconnaissance/site visit.
-Project team to review collected data and conduct an assessment of existing conditions to begin
delineating potential rehabilitation projects.
Updates to the Schedule:
-No major updates, expect to schedule a meeting to review preliminary recommendations with City in
mid to late April.
Project Notes/Questions:
-None at this time.
City of Nederland WWTP Centrifuge Replacement
Client Name: City of Nederland
Subject:Progress Report
Created By: Gabriela Y. Porras, PE Westwood
Westwood No.: R0043842.03
Date: 3/18/2026
Work in Progress:
-Survey crew is onsite from Wednesday March 18 to Friday March 20.
-Communication with electrical andstructural subconsultants is in progress.
-Meeting with EI2 and Alfa Laval regarding next steps is next Monday March 23.
Work to be completed by next Progress Report:
-Finish processing and reviewing surveyed information.
-Create preliminary site plan and meet with City to verify scope.
-Continue the conversation with subconsultants to more clearly determine their scope.
Updates to the Schedule:
-No major updates,expect to schedule a meeting to review preliminary recommendations with City in
mid to late May and move forward with Centrifuge procurement in June/July
Project Notes/Questions:
-None at this time.
RESOLUTION NO.2026-05
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND,TEXAS,AMENDING AUTHORIZED REPRESENTATIVES
OF TEXPOOL
WHEREAS, the City of Nederland is a local government of the State of Texas and is empowered
to delegate to a public funds investment pool the authority to invest funds and to act as custodian of
investments purchased with local investment funds;and
WHEREAS,it is in the best interest of the Participant to invest local funds in investments that provide
for the preservation and safety of principal,liquidity,and yield consistent with the Public Funds Investment
Act;and
WHEREAS, the Texas Local Government Investment Pool ("TexPool/Texpool Prime"), a public
funds investment pool,was created on behalf of entities whose investment objective in order of priority are
preservation and safety of principal,liquidity,and yield consistent with the Public Funds Investment Act.
NOW THEREFORE,BE IT RESOLVED BY THE CtTY COUNCIL OF THE CITY OF NEDERLAND,
TEXAS:
THAT the individuals,whose signatures appear in this Resolution,are Authorized Representatives
of the Participant and are each hereby authorized to transmit funds for investment in TexPool/TexPool Prime
and are each further authorized to withdraw funds from time to time,to issue letters of instruction,and to take
all other actions deemed necessary or appropriate for the investment of local funds.
THAT an Authorized Representative of the Participant may be'deleted bya written instrument signed
by two remaining Authorized Representatives provided that the deleted Authorized Representative (1) is
assigned job duties that no longer require access to the Participant's TexPool/TexPool Prime account or
(2)is no longer employed by the Participant;and
THAT the Participant may by Amending Resolution signed by the Participant add an Authorized
Representative provided the additional Authorized Representative is an officer, employee,or agent of the
Participant;
List of the Authorized Representatives of the Participant. Any new Individuals will be issued personal
identification numbers to transact business with TexPool Participant Services.
•
1. Name Heather Stucker Title:Finance Director
Signature Phone Number:(409)723-1509
2. Name Manuel De La Rosa Title:City Manager
Signature Phone Number(409)723-1503
The Authorized Representative listed above that will have primary responsibility for performing transactions
and receiving confirmations and monthly statements under the Participation Agreement.
Name Heather Stucker
Email hstucker(@,ci.nederland.tx.us Fax Number(409)723-1550
THAT this resolution and its authorization shall continue in full force and effect until amended or
revoked by the Participant and until TexPool Participant Services receives a copy of any such amendment
or revocation.
PASSED AND APPROVED BY THE CITY COUNCIL FO THE CITY OF NEDERLAND AT A
REGULAR MEETING THIS THE 23rd DAY OF MARCH,2026.
41D. 'y,Mayor
City of Nederland,Texas
ATTEST:
4 . � ' ,
Joni Ui,•erwood,City Clerk
APPROVED AS TO FORM:
-)P-- -t;,)/P4'
Richard Hughes,City Attorney
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< JEFFE,:�,
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RESOLUTION 2026-04
A RESOLUTION OF THE CITY OF NEDERLAND
RATIFYING THE ACTION OF THE NEDERLAND
ECONOMIC DEVELOPMENT CORPORATION.
WHEREAS,the present and prospective right to gainful employment and general welfare
of the people of Nederland require as a public purpose the promotion and development of new and
expanded business enterprises;and
WHEREAS, the existence, development, and expansion of business, commerce, and
industry are essential to the economic growth of Nederland and to the full employments,welfare,
and prosperity of its citizens;and
WHEREAS, the means and measures authorized by the Texas Legislature and the
assistance provided in the one-quarter (1/4) of one percent (1%) sales tax for economic
development are in the public interest and serve a public purpose in promoting the welfare of the
citizens of the City economically by the securing and retaining of business enterprises and the
resulting maintenance of a higher Ievel of employment,economic activity,and stability;and
WHEREAS, the citizens of the City of Nederland provided for the creation of the
Nederland Economic Development Corporation by popular vote in a duly authorized election to
serve the public purposes herein described;and
WHEREAS, the Nederland Economic Development Corporation is authorized and
empowered under applicable state Iaw, its charter, bylaws and by board approval,to aid in the
development of business enterprises by offering incentives to prospective new and expanding
businesses.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF NEDERLAND,TEXAS:
THAT the action of the Board of Directors of the Nederland Economic Development
Corporation("Board") relating to project costs associated with Wicked Casian in an aggregate
maximum amount of not more than Twenty-Seven Thousand Five Hundred dollars($27,500.00),
in accordance with the terms and conditions as prescribed by the Board,is hereby ratified.
PASSED AND APPROVED ON THE FIRST READING BY THE CITY COUNCIL
OF THE CITY OF NEDERLAND,TEXAS this 9th day of March ,2026 at which meeting
a quorum was present and voting.
`F'�e P. r4 arby, ayor
City of Nederland,Texas
ATTEST:
Nif
�� U1�-f uulLfJ
Joni Unde od,City Clerk
City of Nederland,Texas 0e " E n,,,����
APPROVED AS TO FORM:
•
Richard Hughes,City Attorney r��h, 1%:�0
City of Nederland,Texas '•••• ��
i .`.
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",(1111I111100
PASSED AND APPROVED ON THE SECOND READING BY THE CITY
COUNCIL OF THE CITY OF NEDERLAND,TEXAS this 23' day of Mafia) _,2026 at
which meeting a quorum was present and voting.
/e��ey P ''arby, ayor
City of Nederland,Texas
ATTEST:
Joni U erwood,City Clerk
City of Nederland,Texas
APPROVED AS TO FORM:
Richard Hughes,City Attorney
City of Nederland,Texas