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GOOD[CALL TO ORDER]
EVENING.CALL THIS MEETING THE RICHARDSON CITY COUNCIL TO ORDER 6:00 PM FIRST ON
[A. PUBLIC COMMENTS ON AGENDA ITEMS AND VISITORS FORUM]
OUR AGENDA ITEM, A PUBLIC COMMENTS ON AGENDA ITEMS AND VISITORS FORUM.MR. MAGNER, UH, THANK YOU, MAYOR.
WE ARE NOT IN RECEIPT OF ANY CARDS IN ADVANCE OF THE 5:00 PM DEADLINE.
I'LL LOOK TO CITY SECRETARY AMY EMAN TO SEE IF WE HAVE A SPEAKER.
I'LL GO AHEAD AND READ THE INSTRUCTIONS.
THIS PORTION OF THE COUNCIL MEETING, EXCUSE ME.
DURING THIS PORTION OF THE COUNCIL MEETING, 30 MINUTES IS ALLOCATED FOR MEMBERS OF THE PUBLIC TO PROVIDE COMMENTS TO THE CITY COUNCIL ON AGENDA ITEMS. EXCUSE ME, IF THERE'S TIME LEFT.
DURING THE INITIAL 30 UH, MINUTES ALLOCATED FOR THE BEGINNING, AT THE BEGINNING OF THE MEETING, THE REMAINING TIME WILL BE PROVIDED AS A VISITOR FORUM OPEN TO ANYONE WISHING TO ADDRESS THE CITY COUNCIL ON ANY TOPIC IN WHICH THE SUBJECT MATTER IS WITHIN THE JURISDICTION OF THE CITY.
IF THE FULL 30 MINUTES ALLOCATED FOR THE PUBLIC COMMENT IS REACHED, THEN SPEAKERS WHO HAVE SUBMITTED A PUBLIC COMMENT CARD MAY SPEAK AT THE VISITORS FORUM SCHEDULED.
AT THE END OF THE MEETING, ALL SPEAKERS SHOULD COMPLETE A PUBLIC COMMENT CARD AND SUBMIT IT TO THE CITY SECRETARY BEFORE THE MEETING BEGINS.
SPEAKERS WILL BE CALLED IN THE ORDER THEY'RE RECEIVED.
WHEN YOUR NAME IS CALLED, PLEASE STEP TO THE PODIUM AND STATE YOUR NAME AND ADDRESS FOR THE RECORD.
ALL SPEAKERS WILL BE LIMITED TO A MAXIMUM OF FIVE MINUTES, AS INDICATED BY THE TIMERS WHEN THE SPEAK, WHEN THE TIMER BEEPS, THE SPEAKER SHOULD CONCLUDE THEIR COMMENTS PROMPTLY.
SPEAKERS MUST NOT PHYSICALLY APPROACH MEMBERS OF THE COUNCIL OR STAFF, AND SHOULD REMAIN AT THE PODIUM DURING THEIR COMMENTS.
SPEAKERS WITH HANDOUTS MUST PROVIDE THEM TO THE CITY SECRETARY FOR DISTRIBUTION SPEAKERS, SUBMITTING COMMENTS ON THE SAME TOPIC, OR ENCOURAGED TO REDUCE REPETITIVE REMARKS BY INDICATING THEIR COMMENTS HAVE ALREADY BEEN ADDRESSED OR BY SELECTING A REPRESENTATIVE, SPEAKER, BLESS YOU.
THE TEXAS OPEN MEETING ACT PROHIBITS THE CITY COUNCIL FROM DISCUSSING OR TAKING ACTION ON ITEMS THAT ARE NOT POSTED ON THE AGENDA.
CITY COUNCIL AND STAFF WILL AFFIRM, WILL NOT AFFIRM OR OPPOSE ANY SPEAKER COMMENTS OR QUESTIONS.
THE MAYOR, CITY MANAGER MAY RESPOND WITH FACTS OF POLICY OR DIRECT CITY STAFF TO RESPOND TO THE SPEAKER AFTER THE MEETING, THE AUDIENCE HAS ASKED TO REFRAIN FROM APPLAUDING OR OTHER EXPRESSIONS OF SUPPORT OR OPPOSITION, A COPY OF THE COUNCIL RULES OF ORDER AND PROCEDURE, AND THESE GUIDELINES MAY BE FOUND ON THE CITY'S WEBSITE.
AT THIS TIME, I'D ALSO LIKE TO REMIND EVERYONE TO SILENCE THEIR CELL PHONE FOR THE DURATION OF THE MEETING.
WE HAVE ONE SPEAKER, MAYOR JUDY.
MY NAME IS JUDY QUARTER, AND I LIVE AT 24 16 FAIRWAY DRIVE HERE IN RICHARDSON.
AND, UH, I'VE LIVED HERE FOR 43 YEARS, AND THIS IS THE FIRST TIME I'VE EVER COME TO A CITY COUNCIL MEETING.
SO THERE'S STILL HOPE FOR PEOPLE WHO'VE BEEN HERE A LONG, LONG TIME.
UH, I, I ACTUALLY, UH, PROBABLY HAVE SEVERAL THINGS ON MY MIND, BUT MAINLY, UH, I WANTED TO, UH, COMPLIMENT YOU AND, AND THANK YOU FOR THE WORK THAT YOU DO.
UM, I'M IN A GROUP CALLED PRAY RICHARDSON THAT MEETS EVERY SATURDAY MORNING TO PRAY FOR YOU FOLKS, AS WELL AS OTHER THINGS THAT ARE GOING ON IN THE CITY.
AND, UM, UH, EVEN THOUGH WE HAVE NEVER MET, I FEEL LIKE I KNOW YOU BECAUSE WE HAVE BEEN, UH, VERY INTERESTED IN, IN THE WORK THAT YOU DO HERE FOR RICHARDSON.
AND, UH, I THANK YOU FOR THAT.
I THANK YOU FOR YOUR COMMITMENT AND YOUR, UM, YOUR, UH, UM, WELL, YOUR COMMITMENT TO, TO OUR CITY.
UM, I WANNA SAY THAT WE OFTEN PRAY FOR, UH, NOT ONLY OUR GOVERNMENT HERE IN RICHARDSON, BUT WE PRAY FOR THE SCHOOLS, UH, THE STU THE STUDENTS, AND THE TEACHERS AND THE ADMINISTRATION.
WE, WE PRAY FOR, UM, THE, UH, BUSINESSES HERE IN RICHARDSON, THE FAMILIES THAT LIVE HERE, UH, THE CHURCHES THAT ARE HERE.
UM, WE, WE FEEL THAT'S EXTREMELY IMPORTANT.
AND THIS GROUP'S BEEN MATING FOR 17 YEARS.
SO WE'VE GOT A LONGSTANDING TIME OF PRAYER FOR OUR CITY.
AND HONESTLY, I REALLY BELIEVE THAT THE PRAYER OVER OUR CITY HAS BEEN LIKE A CLOUD OF PEACE AND, AND, UM, COMFORT AND, UM, GOOD THINGS.
I THINK, I THINK GOOD THINGS HAVE HAPPENED HERE BE BECAUSE WE HAVE, UH, ASK THE LORD TO WATCH OVER GUIDE AND PROTECT US, ESPECIALLY THE POLICE, THE FIREMEN, UH, ALL THE FIRST RESPONDERS.
UH, THERE'S, THERE'S LOTS AND LOTS OF P PEOPLE I KNOW THAT HAVE TO BE A PART OF THE CITY.
AND OF COURSE, RIGHT NOW WE'RE PRAYING FOR, UH, WE OF THE PEOPLE WHO HAVE TO WORK OUT IN THE HEAT, THE COLLECTORS, THE TRASH COLLECTORS, AND, UH, MAILMEN AND ALL, ALL THOSE PEOPLE THAT, UH, SERVE OUR CITY, UH, WHEN IT'S 105
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OUTSIDE.BUT, UH, ANYWAY, OUR GROUP IS MEETING AT SENIORS, THE SENIOR CENTER RIGHT NOW, BUT WE ARE LOOKING FOR A PLACE TO, TO MEET, UM, INDOORS THAT, UM, WHERE PEOPLE OF ALL AGES COULD COME BECAUSE THERE ARE OTHER PEOPLE WHO WOULD LIKE TO PARTICIPATE, BUT THEY'RE NOT SENIORS, AND SO THEY CANNOT PARTICIPATE.
AND, UH, SO I GUESS I COULD PUT A LITTLE, UH, UH, PLEAD IN THE, IF THERE'S A PLACE, MAYBE SOMEWHERE HERE IN, IN THE CITY HALL, UH, WHERE WE COULD MEET SATURDAY MORNINGS.
AND, UH, SO I JUST WANTED TO SAY, UM, THANK YOU.
AND I WANTED TO SAY, UH, WE APPRECIATE YOUR HARD WORK AND WE WILL CONTINUE TO PRAY FOR ALL OF YOU.
[B. REVIEW AND DISCUSS THE CITY MANAGER’S PROPOSED BUDGET FOR FISCAL YEAR 2024-2025]
ITEM B ON THE AGENDA, REVIEW AND DISCUSS CITY MANAGER'S PROPOSED BUDGET FOR FISCAL YEAR 2024 THROUGH 2025.MR. MAGNA, UH, THANK YOU MAYOR.
I'M VERY EXCITED TO, TO BE HERE TONIGHT.
I ALSO WANNA, UH, THANK OUR CMO TEAM AND, UH, ANITA, BOB AND KARA FOR BEING HERE AS WELL.
UH, THEY'VE BEEN, UH, INTEGRAL AND INSTRUMENTAL IN PUTTING TOGETHER THE BUDGET THAT WE FILED, UM, LAST THURSDAY.
AND, UH, WE'LL BE, UH, HELPFUL THROUGHOUT THE NIGHT AS WELL AND, AND AVAILABLE TO, UH, ANSWER ANY QUESTIONS AS WE GO ALONG.
UM, FOR THE COMMUNITY, UH, THIS IS A KEY TIME IN OUR BUDGET DEVELOPMENT PROCESS.
UH, OUR, WE CONSIDER OUR BUDGET DEVELOPMENT PROCESS A YEAR LONG, UM, ACTIVITY.
BUT, UH, AS WE GET HERE IN, IN, UH, MID-AUGUST, AND THE BUDGET IS FILED NOW, UM, UH, THE, UH, BUDGET PRESENTATION TONIGHT, UH, PUBLIC HEARINGS COMING UP, UH, BOTH ON THE TAX RATE AND THEN OF COURSE ON THE BUDGET ITSELF.
UH, WE LOOK FORWARD TO, UM, RAISING AS MUCH AWARENESS AS WE CAN IN THE COMMUNITY ABOUT, UH, THE BUDGET THAT WE HAVE, UH, UH, DEVELOPED, AND, UH, ALSO TAKING, UH, FEEDBACK THROUGH THOSE PUBLIC INPUT OPPORTUNITIES.
UH, JUST AS A REMINDER, UM, IT TAKES A LOT, UH, UH, THROUGHOUT THE SUMMER, AS YOU WELL KNOW, UM, UH, COUNSEL, UM, TO GET TO THIS POINT, UH, WE'VE HAD, UH, DEEP DIVES, AND I WON'T GO THROUGH THESE BY, UH, ITEM, BUT, UH, YOU CAN SEE THERE EACH WEEK IN, IN JUNE AND JULY, UH, INCLUDING THE FIRST, UH, MONDAY AND TUESDAY IN AUGUST, UM, UH, VERY, UM, UM, UM, DEEP CONSIDERATION AROUND THE, UH, VARIOUS TOPICS THAT ARE LISTED THERE, LISTED THERE, UH, ALSO THAT WHEN WE GET TO THIS POINT, AND, UH, YOU HAVE YOUR BUDGET IN FRONT OF YOU, UM, THE CONTEXT AND BACKGROUND THAT YOU NEED TO BETTER UNDERSTAND THE, THE DEEP DETAIL AND, UH, EVEN TO THE LINE ITEM, UH, LEVEL IS, HAS BEEN PROVIDED.
AND SO WE APPRECIATE ALL THE WORK, UH, TO GET HERE.
AND AS I MENTIONED, AFTER TONIGHT, WE HAVE THE PUBLIC HEARING ON THE TAX RATING ON THE NINTH, AND THEN THE PUBLIC HEARING ON THE BUDGET AND THE ADOPTION, EXCUSE ME, ON SEPTEMBER THE 16TH.
UM, THE FORMAT FOR TONIGHT'S, UH, PRESENTATION IS SIMILAR TO, BUT NOT, UH, IDENTICAL TO, UH, THE WORKSHOP PRESENTATION.
WE'RE GONNA, AGAIN, TALK ABOUT SOME OF THE ECONOMIC FACTORS, UH, IMPACTING OUR, UH, BUDGET DEVELOPMENT, UM, UH, THE RESPONSE THAT THE CITY IS, UH, UNDERTAKEN TO MAKE SURE THAT WE ARE POSITIONED AS WELL AS WE CAN BE, UH, GIVEN THESE FACTORS THAT WE DON'T CONTROL.
UH, THEN WE'LL GO INTO THE KEY BUDGET AREAS, UH, KEEP BUDGET FOCUS AREAS, UM, AND THEN, UH, DO SOME HIGHLIGHTS OF, UH, SOME OF THE GENERAL FUND, UH, AND OTHER, UH, FUND HIGHLIGHTS AS WELL.
UM, WE DO HAVE, UH, TWO PLACES, UH, WHERE WE CAN PAUSE, UM, BOTH IN, UH, THE OPERATING BUDGET, UM, AND THE, UH, OTHER FUNDS, AND THEN IN THE CAPITAL AND PLANNING AND THE OTHER FUNDS AS IT RELATES TO THOSE, UM, THAT WE CAN, UH, PAUSE AND ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE.
UM, I, I KNOW A LOT OF INFORMATION DELIVERED TO YOU ON, ON THURSDAY, AND, UH, HAPPY TO, UH, SPEND SOME TIME ON SOME OF THESE OTHER FUNDS AS THEY ARE, UH, EQUALLY IMPORTANT.
UH, SO AGAIN, JUST AS WE, UH, EMBARKED EARLIER THIS SUMMER, UH, ON THIS, UH, ON THIS PROCESS, UH, TWO THINGS QUICKLY, UH, STOOD OUT TO US.
OBVIOUSLY, AS YOU LOOK AT THE LARGE, UH, UH, RED LINE HEADED TO THE, TO THE LEFT THERE, UM, THAT'S A, UH, $5.2 MILLION, UH, SHORTFALL, UH, IN SALES AND OTHER BUSINESS TAXES THAT WE WERE CONFRONTED WITH.
UM, AND THEN, UH, EVEN THOUGH, UH, PROPERTY TAXES DID GROW, UH, WE WERE VERY, VERY, UH, MINDFUL OF A, UH, COMMERCIAL REAL ESTATE, UH, SECTOR WHERE VALUES WERE DOWN, UH, 9.4%.
AND, UM, SO AS WE BEGAN TO REALLY TAKE INTO CONSIDERATION, UM, OUR, UH, OPTIONS, UH, THESE TWO THINGS WERE, UM, THESE TWO, UH, UM, ITEMS WERE, WERE THINGS THAT WE WANTED TO BETTER UNDERSTAND.
IF YOU LOOK THERE AT THE BOTTOM, UM, IT'S VERY TELLING NOW, YOU WE'RE LOOKING, UM, WHEN YOU NET ALL THESE REDS AND GREENS OUT, WE'RE LOOKING AT $1.1 MILLION, UH, OF ADDITIONAL REVENUE YEAR OVER YEAR.
AND SO THAT TOOK SOME, UH, REAL, UM, REFLECTION ON OUR PART, UM,
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TO LOOK FOR, UH, EFFICIENCY OPPORTUNITIES, LOOK FOR NEW WAYS OF DOING THINGS, AND DELIVERING, UH, THE PROGRAMS AND SERVICES THAT WE DO AT A HIGH LEVEL.UM, AS WE MENTIONED PREVIOUSLY, UH, TWO VERY IMPORTANT FACTORS THAT REMAIN IMPORTANT, FACTORS TODAY AND WILL FOR THE FORESEEABLE FUTURE, UM, THAT ARE IMPACTING, UM, THE INTEREST RATES AND THE REDUCTION, UH, THE, THE, UH, DECLINE IN THE COMMERCIAL REAL ESTATE MARKET SECTOR WHERE THE PERSISTENT INFLATION, UM, AS WELL AS THE HIGH INTEREST RATES.
AND AS WE TALKED ABOUT PREVIOUSLY, WE'VE TRACKED THIS BACK REALLY BACK TO, UH, THE BEGINNING OF, UH, UH, FROM THE BEGINNING OF THE PANDEMIC WHERE WE LOST OVER 23 MILLION JOBS AS A NATION.
UM, HERE YOU CAN SEE, UH, FROM THAT, UH, MARCH TIMEFRAME, UH, TILL TILL THE, UH, ESSENTIALLY THE END OF, UH, 2020 THERE, THE FEDERAL GOVERNMENTS, UH, RELEASED OVER $1.6 TRILLION IN, IN FEDERAL AID, UM, IN RESPONSE TO COVID-19 THAT HAD THE, UM, IMPACT OF, UH, QUICKLY, UM, CREATING PRESSURES, UH, INFLATIONARY PRESSURES THAT WERE, UH, UNLIKE ANYTHING WE HAD SEEN IN ALMOST TWO DECADES.
UH, THERE WERE PRODUCTION SHUTDOWNS, AS WE ALL KNOW.
THERE WERE SUPPLY CHAIN ISSUES THAT WE ALL HAD TO DEAL WITH ACROSS ALL KINDS OF DIFFERENT, UM, CATEGORIES.
UM, THESE ALL LED TO SHORTAGES AND GOOD ALL AT THE SAME TIME.
UH, THERE WAS A SIGNIFICANT DEMAND CHANGE FROM SERVICES TO GOODS.
PEOPLE NEEDED THINGS BECAUSE THEY WERE BEING ASKED TO DO THEIR JOBS FROM THEIR HOMES.
THEY WERE BEING ASKED TO, UM, REALLY SHELTER AND, UM, AND, UM, AND ISOLATE THEMSELVES.
AND SO GOODS BECAME, UM, VERY IMPORTANT AT THAT TIME.
UM, AND AS I MENTIONED, IN JUST TWO YEARS, UH, JUST TWO SHORT YEARS AS A RESULT OF THIS, THE INFLATION REACHED ITS HIGHEST RATE, UH, THERE IN JULY OF 22.
UM, YOU KNOW THIS BECAUSE BOTH IN, UH, MY FIRST BUDGET IN 22, 23, UH, AND THEN LAST YEAR WE TALKED ABOUT EXAMPLE AFTER EXAMPLE OF THE INFLATIONARY PRESSURES THAT WE WERE, WERE SEEING SOMETIMES 30%, UH, CHANGE IN THE COST OF THINGS THAT WE NEED TO DO OUR JOB EVERY DAY, UH, YEAR OVER YEAR.
AND SO VERY IMPORTANT, UH, UH, DFW WITHOUT A DOUBT, UM, ONE OF THE MOST IMPACTED REGIONS IN, IN THE UNITED STATES, UH, UM, WITH WHAT WE'VE TERMED PERSISTENT INFLATION, AS YOU CAN SEE, UM, BACK FROM THAT NOVEMBER 20 TIMEFRAME ALL THE WAY THROUGH TODAY, WE CONTINUE TO SEE, UM, INFLATION LEVELS THAT, UM, THAT ARE REALLY HISTORIC BECAUSE OF THE AMOUNT OF YEARS, THREE YEARS NOW THAT WE'VE, UM, WE'VE HAD TO DEAL WITH THESE.
UM, THE MAIN REASON IT'S BEEN EXASPERATED HERE IN NORTH TEXAS IS BECAUSE THE, THE POPULATION GROWTH WE HAVE, UM, WE CONTINUE TO HAVE, UM, GROWTH, UH, MORE THAN ANY OTHER TIME IN OUR HISTORY.
AND THAT GROWTH IS, UM, CONTINUES TO OUTPACE THE SUPPLY OF, UH, IMPORTANT THINGS LIKE HOUSING, FOR INSTANCE.
AND SO, UM, HERE, UH, RECENTLY, UH, JUST THIS, UH, UH, THIS, UH, JULY, THE MAY 19, THAT MAY 20 AND THE MAY, 2024, UM, THE CPI HAD INCREASED 5% YEAR OVER YEAR.
SO WHAT THAT REALLY MEANS IS IF YOU WERE GOING TO THE GROCERY STORE AND BUYING THE SAME BASKET OF GROCERIES ONE YEAR LATER, YOU WERE GONNA PAY 5% MORE FOR IT.
IF WE, THE CITY WERE SPENDING, UH, WHICH WE DO MILLIONS OF DOLLARS ON INFRASTRUCTURE, IT WAS GONNA, ON AVERAGE COST ABOUT 5% MORE THAN YEAR OVER YEAR.
UM, AND SO I THINK THAT'S AN IMPORTANT WAY AS A RESULT OF THIS, BOTH, UH, CONSUMERS, UM, UM, UM, AND BUSINESSES HAVE LOST THEIR PURCHASING POWER.
UM, AND OF COURSE, THEY BOTH HAVE, UH, BEEN FACED WITH UNCERTAINTIES THAT HAVE REALLY RESULTED INCREASED PESSIMISM THAT HAVE, UH, HAS HAVE IMPACTED, UH, THEIR SPENDING HABITS, WHICH HAS A DIRECT CORRELATION WITH OUR SALES TAX.
UM, IN RESPONSE TO THAT INFLATIONARY PRESSURE, THE FED DID WHAT IT NORMALLY DOES, WHICH IS IT RAISED INTEREST RATES AND, AND, AND JUST 16 MONTHS, IT RAISED INTEREST RATES, UH, TO THE HIGHEST LEVELS THAT THEY HAD BEEN IN 23 YEARS.
AND IT'S IMPORTANT TO KNOW THAT SINCE JULY OF LAST YEAR, THOSE INTEREST RATES HAVE REMAINED THE SAME.
THEY HAVE NOT COME DOWN, UM, ONE, UH, ONE QUARTER OF A BASIS POINT, FOR INSTANCE.
UM, UH, NOT WITHSTANDING A LOT OF, UH, FACTORS, UM, THAT THAT MIGHT HAVE LED TO THAT, UH, OTHERWISE, AND WE'LL COME BACK AND TALK ABOUT THAT, BUT WE CANNOT OVER IN OVERESTIMATE THE IMPACT THAT THE HIGH INFLATIONARY RATES IS HA HAVE HAD.
UM, ONE OF THE WAY, MAIN WAYS WE SEE THAT, AND WE SEE IT RESONATING IN OUR, WHAT WE BELIEVE IS OUR OFFICE REAL ESTATE MARKET, BUT I BELIEVE OTHER, OTHER REAL ESTATE MARKETS AS WELL, IS THAT, UH, ONE OF THE MAIN CONSEQUENCES OF THESE INTEREST RATES IS THAT CAPITAL HAS BECOME SIGNIFICANTLY MORE DIFFICULT TO ACCESS, UM, BANK AND OTHER CAPITAL PROVIDERS, EVEN, EVEN FINDING THE OFFICES HAVE ADOPTED A MUCH MORE STRINGENT UNDERWRITING, UM, REQUIREMENTS TO MITIGATE THE RISK THAT THEY HAVE WITH ASSOCIATED, THAT'S ASSOCIATED WITH LENDING MONEY AT A HIGHER RATE.
AND OF COURSE, THOSE HIGHER RATES ALSO MAKE IT VERY DIFFICULT FOR DEVELOPERS, UM, TO, UH, TO DELIVER PROJECTS.
IF YOU'RE PAYING MORE FOR THE MATERIALS AND YOU'RE PAYING MORE FOR THE LABOR, AND YOU'RE PAYING MORE FOR THE MONEY THAT YOU BORROW TO, TO CREATE THAT PROJECT, IT CAN REALLY WREAK HAVOC ON A FINANCIAL PROFORMA OF A PROJECT.
UM, AND THAT'S WHAT WE'VE SEEN HERE IN RICHARDSON, UM,
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IN NORTH TEXAS.UM, BUSINESSES AND CONSUMERS HAVE REACTED HOW YOU WOULD EXPECT THEM TO BOTH THE INFLATION, THE HIGHER INTEREST RATES HAVE LED TO LESS SPENDING OVERALL, AND IMPORTANTLY, LESS INVESTMENT, UM, THAT BOTH, UH, BUSINESS AND, AND CONSUMERS REPORT THAT, UM, IMPORTANT SPENDING DECISIONS THAT THEY, THEY, THEY WOULD MAKE, UM, ARE GONNA BE POSTPONED AND HAVE BEEN POSTPONED UNTIL, UH, ECONOMIC FACTORS STABILIZE AND MORE FAVORABLE CONDITIONS, UM, UH, ARE APPARENT.
AND WE SEE THAT, UH, REALLY THROUGH ALL THE SECTORS, UH, BUSINESS IN PARTICULAR ALSO REPORT THAT ONGOING CONCERNS ABOUT POLITICAL VOLATILITY AND A, UH, POTENTIAL RECESSION ARE CONTRIBUTING TO THEIR COSTS, UH, CAUTIOUS SPENDING APPROACH.
UM, WHEN YOU'RE, WHEN YOU'RE A BUSINESS, I MEAN THINGS THAT, UH, EVERYTHING FROM MONETARY POLICY TO, UH, COULD THERE BE POTENTIAL GOVERNMENT SHUTDOWNS RELATED TO BUDGET ISSUES? COULD CERTAIN INDUSTRIES BENEFIT MORE THAN OTHERS DEPENDING ON THE ADMINISTRATION THAT COMES IN? AND SO, UM, THESE ARE JUST THINGS THAT, UM, AS WE HAVE AN OPPORTUNITY TO VISIT WITH BUSINESS LEADERS, BOTH SMALL, ALL THE WAY TO LARGE CORPORATIONS ON A REGULAR BASIS, UM, THAT WE'RE HERE, AND THERE'S BEEN JUST A, UM, A, A A ALMOST A POSTPONEMENT, UM, OF ALL INVESTMENT IT SEEMS LIKE, UM, OF ANY CONSEQUENCE UNTIL WE GET THROUGH, UH, THE LATTER PART OF THIS YEAR AND INTO OUR, THE PART, UH, EARLIER PART OF 2025 THAT'S HAD A, A, A, A REAL IMPACT, UH, LOCALLY HERE, UH, AS WELL AS THE STATE OF TEXAS, UM, WHO IS, UH, SALES TAX NOW, UM, GROWING MUCH SLOWER THAN IT HAD IN PREVIOUS YEARS.
YOU CAN SEE OUR 10 YEAR HISTORY HERE, AND YOU SEE THERE, OUR FY 2324 BUDGET IS $54.1 MILLION.
UH, GIVEN THE TREND THAT WE'VE BEEN ON FOR THE LAST NINE MONTHS, WE ARE ACTUALLY TAKING A VERY CAUTIOUS APPROACH TO OUR SA SALES TAX ESTIMATION, WHICH IS OUR, WHICH IS OUR PRACTICE, AND WE'RE, UH, BUDGETING A 3.1% LESS, UM, UH, SALES TAX, UH, THAN OUR FY 2324 ESTIMATE.
SO YOU SEE THAT $52.4 MILLION, WE HAVEN'T BEEN THAT LOW AGAIN SINCE THE FIRST, SINCE THE BUDGET YEAR THAT WAS IN PLACE WHEN COVID, UM, BECAME AN ISSUE FOR US.
SO ALL THE WAY BACK TO 2021, UH, RETURNING TO 2021, UH, LEVELS, AND THAT'S NOT SURPRISING.
UM, ONCE WE WERE, UH, UH, ABOUT, UH, THIRD, UH, THIRD, UH, THIRD OF THE WAY THROUGH THIS YEAR, EXCUSE ME, BUT HALF WAY THROUGH THIS YEAR, THIS, UH, BUDGET YEAR, UH, WE WERE ALREADY ALMOST $2 MILLION DOWN IN SALES TAX.
AND SO WE, UM, BROUGHT IN SOME HELP TO, UH, SOME, SOME CONSULTING ASSISTANCE TO HELP US ANALYZE, UM, THOSE SALES TAX TRENDS.
UM, YOU CAN SEE HERE, WE LOOKED AT 134 OF THE TOP TAXPAYERS, UM, BUT THEY AMOUNTED FOR 60% OF ALL THE SALES TAX THAT WE COLLECTED.
SO YOU MIGHT SAY, AS THESE TAXPAYERS GO, OUR SALES TAX, UH, GO, YOU KNOW, IF THEY'RE DOING REALLY WELL, WE'RE DOING REALLY WELL.
AND SO WE REALLY WANTED TO BETTER UNDERSTAND THE NUANCE OF WHAT WAS HAPPENING WITH SALES TAX.
UM, THERE ARE REALLY THREE MAIN THEMES THAT WE FOUND OUT THAT, THAT WE RE DISCOVERED.
AND AGAIN, IF YOU LOOK AT, UM, THAT, THAT MAY OF 2020 PERIOD, ONE IS THAT, UM, WE'VE SEEN A SHARP DECLINE IN, UH, SALES TAX RELATED TO TECHNOLOGY PURCHASES.
UM, WE BELIEVE WHAT HAPPENED HERE IS, UH, BECAUSE OF COVID, THERE WAS SO MUCH INVESTMENT, UM, IN EVERYTHING FROM LAPTOPS, SO EMPLOYEES COULD WORK FROM HOME, UH, TO SERVERS, UH, THAT WERE NECESSARY TO SUPPORT ALL THE ADDITIONAL REMOTE, UH, WORK.
UM, AND, AND SO JUST A, A, A, A LOT OF, UH, PURCHASING THAT TOOK PLACE, UM, UH, PARTICULARLY AS SOME OF THE FEDERAL DOLLARS BECAME AVAILABLE IN LATE 2020 ALL THE WAY THROUGH 2021.
AND SO WE SEE, WE SAW A REAL UPTICK, UM, IN SALES TAX RELATED TO TECHNOLOGY.
YOU CAN KIND OF SEE THAT, UM, AS YOU LOOK AT 20 21, 20 20, 21, 22, AND 22, 23, YOU SEE THAT, UH, VERY, UH, SHARP INCLINE THAT WE HAVE THERE.
THE SECOND, UH, AREA WAS INSURANCE RELATED SPENDING.
AND HERE THIS TOOK A, A LITTLE BIT MORE, UH, UH, OR I THINK, RESEARCH TO REALLY APPRECIATE AND UNDERSTAND, BUT YOU SEE THE AREA THAT'S BLOCKED OFF THERE THROUGH JANUARY, 2020 THROUGH DECEMBER OF 22 I, AND YOU SEE, AGAIN, THE SHARP INCLINE THERE.
UM, DURING THAT PERIOD OF TIME, THERE WERE 30 DIFFERENT BILLION DOLLAR WEATHER RELATED DISASTERS IN TEXAS.
AND WHAT WE FOUND IS TWO THINGS.
ONE, UH, COMPANIES LIKE STATE FARM, UM, WHEN THAT, WHEN YOU HAVE THAT VOLUME OF CLAIM, UH, PROCESSING NEEDS, THEY OFTEN GO OUT AND THEY HIRE INDEPENDENT, UM, ADJUSTERS AND OTHER INDEPENDENT SUPPORT STAFF.
AND WHEN THEY DO THAT, THEY PAY SALES TAX ON THOSE DOLLARS THAT ARE PAID TO THOSE, UM, TO THOSE PROFESSIONALS.
BUT THE OTHER THING IS, IS THERE'S A SIGNIFICANT AMOUNT OF REINVESTMENT THAT TAKES PLACE AFTER A STORM, SAY LIKE WINTER STORM URI, I MEAN, EVERYBODY IN THIS ROOM PROBABLY KNOWS SOMEBODY THAT HAD TO SPEND, UH, TO MAKE, SPEND DOLLARS AND, AND REINVEST IN THEIR HOME BECAUSE OF DAMAGE THAT OCCURRED.
WELL, THAT ACCOUNTED FOR SOME OF THAT SHARP INCLINE THAT YOU SEE THERE OVER THAT THREE YEAR PERIOD.
AND THEN THE FINAL DECLINE IN SALES TAX THAT WE'RE SEEING IS, UM, CONSTRUCTION RELATED IN, UH, IN SPENDING.
AS WE'VE TALKED ABOUT PREVIOUSLY, THE HIGH INTEREST RATES ARE DEFINITELY HAMPERING
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CONSTRUCTION, NOT JUST IN RICHARDSON, NOT JUST IN NORTH TEXAS, BUT THROUGHOUT THE ENTIRE, UH, UNITED STATES.YOU CAN SEE THERE AS INFLATION HAS HIT THAT 9% MARK, UM, UM, FROM THAT PERIOD MOVING FORWARD, CONSTRUCTION STARTS A SIGNIFICANTLY DOWN, UM, AND CONSTRUCTION STARTS, UM, OR NOT ONLY CAPITAL INVESTMENT, THEY'RE, THEY, THEY IMPACT SALES TAX AS WELL, UM, ON THE, UH, BUILDING MATERIALS AND OTHER SUPPLIES AND THINGS THAT ARE, THAT ARE NEEDED TO, UH, COMPLETE A CONSTRUCTION PROJECT.
AND SO THESE ARE THE THREE MAIN AREAS.
I THINK A IMPORTANT LESSON LEARNED FROM US, UM, IS THAT, UM, UH, BETTER APPRECIATING, UM, THE, UH, SECTORS OF OUR SALES TAX COLLECTIONS THAT COULD BE SUBJECT TO, UH, VOLATILITY, GIVEN THINGS LIKE, YOU KNOW, THE NUMBER OF WEATHER DISASTERS OR, UM, YOU KNOW, NOT THAT, UH, WE'LL HOPEFULLY WON'T HAVE TO DEAL WITH ANOTHER PANDEMIC IN THE NEAR FUTURE, BUT THINGS LIKE, LIKE THE, THE TECHNOLOGY RELATED TO THAT.
UM, WE'LL, I BELIEVE WE'LL HAVE A BETTER APPRECIATION FOR THAT MOVING FORWARD AND A BETTER UNDERSTANDING, UM, AS WE CONTINUE TO, TO HAVE A MORE SOPHISTICATED APPROACH TO EVALUATING OUR SALES TAX.
THE FINAL AREA THAT'S REALLY IMPORTANT TO NOTE HERE, BECAUSE IT'S NOT ONLY A FACTOR IN THIS YEAR AS WE SEE A NINE AND A HALF OR 9.4% REDUCTION IN OUR, UM, UH, COMMERCIAL REAL ESTATE, UH, VALUES, BUT AS WE MOVE FORWARD, WE'RE ANTICIPATING EVEN MORE SO, UM, EVEN, EVEN MORE YEARS OF POTENTIALLY HAVING THIS ISSUE.
THE THIRD IS THE FIRST, UH, ISSUE RELATED TO THIS IS WHAT'S CALLED THE FLIGHT TO QUALITY.
UH, AS YOU CAN SEE HERE, WE CURRENTLY HAVE, UM, A, UH, ALMOST A 20% OFFICE VACANCY RATE, UM, HERE IN, IN THE UNITED STATES, HOUSTON, DALLAS AND AUSTIN ARE ONE, TWO, AND THREE MARKETS, UM, UH, IN TERMS OF THE MOST VACANT OFFICE SPACE.
NOW, THAT'S NOT BECAUSE THESE AREN'T, UH, ATTRACTIVE REGIONS.
AS A MATTER OF FACT, THEY'RE SOME OF THE STRONGEST REGIONS IN ALL OF THE COUNTRY, AS WE WELL KNOW.
IT'S A A, A BIG PART OF THAT REASON IS BECAUSE OF THE AGE OF THAT OFFICE PRODUCT THAT'S OUT THERE.
A LARGE PART OF THAT OFFICE PROJECT IS, IS NOW, UH, CONSIDERED TO BE OUTDATED OR ANTIQUATED.
IF YOU LOOK HERE AT THE DFW MARKET, THERE'S A SIGNIFICANT DISCREPANCY IN LEASING ACTIVITY BETWEEN BUILDINGS THAT WERE CONSTRUCTED BEFORE 2015 AND AFTER 2015 BUILDINGS THAT WERE CONSTRUCTED BEFORE 2015 LOST ALMOST 18 MILLION SQUARE FEET OF OCCUPANCY.
UM, BUILDINGS THAT ARE NEWER THAN 2015 GAINED 14 MILLION OF THOSE SQUARE FEET OF OCCUPANCY.
AND SO, UH, A REAL, UH, POINT OF INTEREST FOR US AS OUR COMMERCIAL REAL ESTATE, UH, UM, INVENTORY, UH, IS A OF THE OLDER NATURE AND IS OF A OLDER PRODUCT AND TYPE.
AND SO WE'VE GOTTA BE VERY MINDFUL ABOUT HOW WE'RE GOING TO DEAL WITH THAT MOVING FORWARD.
BECAUSE WHAT WE KNOW FROM TALKING TO BUSINESSES, FIRST AND FOREMOST, THEY WANT THE BEST BUILDING ON THE BLOCK WITH THE BEST AMENITIES, THE BEST FINISH OUTS, BECAUSE THAT'S WHAT THEY FEEL THEY NEED TO, TO ATTRACT THEIR, UH, TALENT BACK TO THE OFFICE.
THEY DON'T WANNA MANDATE THAT THEIR EMPLOYEES COME BACK TO, TO THE OFFICE.
THEY WANNA INCENTIVIZE THEM, AND THEY WANT TO, UH, ATTRACT THEM BACK TO THE OFFICE VOLUNTARILY.
UH, THE OTHER ISSUE THAT WE'RE WATCHING CLOSELY, AND THAT WILL CON LIKELY CONTINUE TO BE AN ISSUE FOR US IN THE COMING YEARS IS LOAN DEFAULTS.
UM, TODAY, UH, THE HIGH INTEREST RATES ARE EXTREMELY PROBLEMATIC FOR COMMERCIAL PROPERTY OWNERS, PARTICULARLY COMMERCIAL PROPERTY OWNERS OF THOSE OLDER ASSETS.
UM, MOST OF THE MORTGAGES THAT ARE COMING DUE NOW, AND THAT WILL COME DUE IN THE NEXT TWO TO THREE YEARS, UM, UH, THEN WHEN THOSE BUILDINGS WERE FINANCED, THEY WERE FINANCED WITH INTEREST RATES AT ABOUT HALF OF WHAT YOU SEE AS A, AS A VIABLE RATE TODAY.
UM, SO PAYING ALMOST TWICE AS MUCH IN INTEREST IN MOVING FORWARD, UH, IN A, IN A STABLE MARKET THAT THIS NORMALLY WOULDN'T BE A PROBLEM FOR LANDLORDS.
BUT WE'RE NOT IN A STABLE MARKET.
WE'RE IN A POST COVID MARKET WHERE, UM, BUSINESSES NEED LESS SQUARE FEET AND THEY'RE WILLING TO PAY LESS PER SQUARE FEET BECAUSE THERE IS SO MUCH, UM, AVAILABILITY, PARTICULARLY ON THE SUBMARKET, UM, OWNERS.
UH, WE SEE NOT, AGAIN, NOT JUST HERE NORTH TEXAS OR TEXAS, THIS IS NATIONWIDE.
WE SEE OWNERS STRUGGLING, UM, TO COPE WITH THIS SITUATION.
AND, AND, AS YOU KNOW, HAVE DEFAULTED ON, UH, A HUNDRED BILLION DOLLARS OF COMMERCIAL REAL ESTATE LOANS SO FAR IN THE UNITED STATES.
UM, AGAIN, BUILDINGS THAT OFF OFFICE, BUILDINGS THAT LACK, LACK, MODERN AMENITIES AND FUNCTIONALITY ARE GONNA BE EVEN MORE SUSCEPTIBLE TO THIS BECAUSE THEY'RE GONNA BE MUCH LESS DESIRABLE AND, AND REALLY COULD EVEN BE CONSIDERED UNECONOMICAL AT THIS POINT.
WE ARE, UH, UH, TACKLING THESE ISSUES VERY PROACTIVELY.
UM, AS YOU KNOW, WE HAVE A, A VERY PROACTIVE OFFICE AND FLEX REAL ESTATE STRATEGY.
UH, THE FIRST, UH, ELEMENT TO THIS IS WE'RE WORKING VERY HARD TO CREATE PLACES WHERE TALENT WANTS TO WORK BY REPLACING OUTDATED OFFICE BUILDINGS THAT NO LONGER CAN COMPETE IN THIS VERY COMPETITIVE NORTH TEXAS MARKETING, UM, AND REPLACING THOSE WITH THINGS LIKE HOUSING AND RESTAURANTS AND ENTERTAINMENT, SO THAT THE REMAINING OFFICE BUILDINGS ON THESE TRADITIONAL CAMPUSES CAN COMPETE MORE EFFECTIVELY.
UM, WE'RE VERY EXCITED ABOUT TWO PROJECTS THAT WE HAVE UNDERWAY, UH, HERE TAKEN, UM, UH, 2, 2, 2 VERY DIFFERENT PROJECTS, BUT ONE, UH, BY LANG PARTNERS DOWN OFF OF WEST SPRING VALLEY, AND THEN THE OTHER, JUST SOUTH, THE RENTER
[00:25:01]
ON US.75, A TOTAL OF 80,000, UH, SQUARE FEET OF OUTDATED OFFICE ELIMINATED THE VALUE OF THAT PRODUCT WAS ALMOST, WAS ABOUT $5.7 MILLION.
THE ESTIMATED VALUE OF THE TWO PROJECTS THAT ARE GONNA REPLACE THESE TWO OFFICE BUILDINGS IS $130 MILLION.
WE NEED TO REPLICATE THAT AS OFTEN AS WE CAN, UM, WITHIN THE, WITHIN THE GUIDELINES AND WITHIN THE SPIRIT, UH, OF THE, OF THE WORK THAT YOU'VE SET US OUT TO DO.
WE NEED TO BE MINDFUL OF THE COMMUNITY EXPECTATIONS, AND WE NEED TO BE MINDFUL, MINDFUL OF OUR DEVELOPMENT, UM, GOALS.
BUT THIS IS THE KIND OF REINVESTMENT THAT WE MUST INSPIRE AND WE MUST WORK TO ACHIEVE, UM, TO KEEP, TO KEEP US, UM, VIABLE.
BOTH OF THESE WERE IDEAL LOCATIONS.
THEY WERE BOTH LOCATED NEAR THE RED LINE, UH, AND THE CENTRAL TRAIL, MAKING THEM REAL TOD, UH, PROJECTS.
AND THAT, AND THEN BOTH OF THESE PROJECTS WILL HELP THE RESIDENTS, UH, WILL, WILL, UH, BE, BE ADJACENT TO, UH, EXISTING RETAIL TO SUPPORT THAT RETAIL, AND WILL ALSO BE ADJACENT TO, UM, UH, TO, UH, TO, UH, LOCAL, OTHER, OTHER OFFICE BUILDINGS IN THE AREA, THE FOSSIL CAMPUS, FOR INSTANCE, OR THE GALLATIN, UH, COMMONS, UH, CAMPUS, UM, AND, UH, UH, AND, AND, AND REALLY BE ABLE TO LEVERAGE DART IN THAT WAY.
THE SECOND IS TO CREATE CLASS OFFICE ASSETS BY INVESTING IN BUILDINGS THAT NEED TO BE MODERNIZED, UM, BECAUSE THEY'RE IN A GOOD LOCATION AND THEY HAVE THOSE EXISTING AMENITIES.
UH, GALLATIN COMMONS IS A GREAT EXAMPLE OF THIS.
UM, THE OWNERS, UH, HAD A GREAT VISION FOR, UH, BUILDING C, WHICH WAS VACATED BY A TENANT THAT HAD OCCUPIED IT FOR 10 YEARS.
AND YOU CAN SEE ON THE, UH, TOP THERE, IT WASN'T A, IT WASN'T A BAD LOOKING, UH, BUILDING AT THAT TIME, BUT IT WAS, IT WAS, IT SHOWED ITS AGE, UH, AND IT WOULD NOT COMPETE LIKE THE PICTURES ON THE BOTTOM WILL COMPETE, UM, AND, AND, AND ARE VERY ACTIVELY COMPETING.
THESE IMPROVEMENTS ARE OPENING UP, UM, UH, THE POSSIBILITY OF, OF A WHOLE NOTHER CLASS OF TENANT, UH, OR TENANTS MOVING INTO THIS BUILDING THAT WOULD'VE OTHERWISE NOT LOOKED AT IT.
THIS TAKES REAL VISION BY AN OWNER.
THIS OWNER, FOR INSTANCE, SPENDING UPWARDS OF $8 MILLION, UH, JUST TO IMPROVE THE AMENITIES AND THE COMMON AREAS, UH, BUT IT TAKES A PARTNERSHIP FROM THE CITY.
UH, WE PARTNER WITH THEM TO HELP THEM AC ACCOMPLISH THIS.
UH, AND WE WILL BENEFIT, UM, IN SEVERAL WAYS, UH, WHEN, WHEN THE OCCU, WHEN, WHEN THE BUILDING IS LEASED, AND WE HAVE NEW OCCUPANTS.
ANOTHER GREAT EXAMPLE OF THIS IS COLLINS CROSSING, UH, AGAIN, NEW OWNERSHIP, UH, JUST ABOUT A YEAR OR SO NOW.
UH, IT HAS A VERY AGGRESSIVE CAPITAL INVESTMENT PLAN.
UM, AND AS A RESULT OF THAT CAPITAL INVESTMENT PLAN AND THE VISION THAT THEY'RE ABLE TO SHARE, INCLUDING, UH, FUTURE MULTI-FAMILY DEVELOPMENT JUST TO THE NORTH OF THIS BUILDING, UM, THEY'VE BEEN ABLE TO LEASE, UH, UM, ALMOST, UH, 92,000 SQUARE FEET OF SPACE SINCE JANUARY OF THIS YEAR, UM, UH, TO SOME GREAT COMPANIES.
UH, XPERIA, ANOTHER SEMICONDUCTOR MANUFACTURING, UM, COMPANY THAT WILL ANNOUNCE, UH, SOON, AND THEN, UH, CHEST MA HOMES FOR 14,000 SQUARE FEET.
BUT THIS IS THE KIND OF OWNER THAT WE HAVE TO SEEK OUT.
THIS IS THE KIND OF OWNER WE HAVE TO TRY TO ATTRACT TO RICHARDSON, UH, BECAUSE BOTH OF THESE EXAMPLES, UH, SHOW A GREAT DEAL OF VISION.
AND THEN THE FINAL, UH, OPPORTUNITY HERE FOR US IS TO HELP WITH THE TENANT IMPROVEMENT GAP.
UM, WE CAN'T YET, UM, DEMAND THE KIND OF RENTS, UM, THAT A LEGACY WEST CAN, FOR INSTANCE, WE CAN'T YET DEMAND A 30 TO A $35, UH, PER SQUARE FOOT, UM, RENT.
UM, HOWEVER, WHEN OUR OWNERS ARE BEING CONFRONTED WITH, UH, UH, POTENTIAL LEASE OPPORTUNITIES, THEY'RE BEING ASKED FOR THE SAME KIND OF TENANT IMPROVEMENT ALLOWANCES THAT, THAT BUILDING THAT CAN DEMAND 30 TO $35 A SQUARE FOOT.
SO, WHERE WE MAY DEMANDING, WE MAY BE ACHIEVING $10 OR LESS PER SQUARE FOOT, IT'S SIMPLY NOT POSSIBLE FOR AN OWNER TO AMORTIZE THAT KIND OF A TI INVESTMENT OVER THE COURSE OF OUR SEVEN OR A 10 YEAR LEASE AND MAKE IT FINANCIALLY VIABLE.
WE'RE ABLE TO STEP IN AND TO ASSIST WITH THOSE TENANT IMPROVEMENTS BY PROVIDING GRANTS THAT CAN MAKE THAT DEAL THAT WOULD OTHERWISE BE NOT FINANCIALLY FEASIBLE BY MAKING THAT FINANCIALLY FEASIBLE.
AND WE'VE HAD SOME GREAT EXAMPLES OF THAT THIS FIRST YEAR.
THE ONE THING I WANNA POINT OUT HERE THAT I THINK IS IMPORTANT IS WE'VE ONLY INCENTIVIZED FOUR OF THESE.
SO ONLY HALF OF THESE PROJECTS, UH, HAVE A CITY RELATED INCENTIVE.
THE OTHERS ARE LOCATING WHERE THEY'RE LOCATING BECAUSE THEY WANT TO BE NEAR THE PROJECTS THAT WE INCENTIVIZE.
IF WE DO THIS RIGHT, OUR INVESTMENT WILL HAVE EXPONENTIAL RETURNS TO US, BECAUSE WE'LL CONTINUE TO CREATE THE KIND OF ENVIRONMENT THAT BUSINESSES WILL WANT TO, UM, UH, BE NEAR AND BE IN AND BE, BE, UH, ADJACENT TO, UH, OTHER COMPANIES THAT SHARE THEIR GOALS, UM, ON THE RES ON THE RETAIL, UH, UH, REAL ESTATE, UH, STRATEGY.
UM, THIS IS, I KNOW IS AN IMPORTANT, UM, UH, TO THE COUNCIL.
YOU'VE ADDED IT TO YOUR GOALS THIS LAST, UH, SESSION.
AND, UH, AGAIN, FIRST AND FOREMOST HERE IS TO, TO, TO HELP WITH THE ACQUISITION, UH, AND TO PROVIDE, UH, ACQUISITION ASSISTANCE TO OWNERS AND OWNER DEVELOPERS WHO WISH TO REVITALIZE THESE CENTERS, BUT THESE, UH, TO TRY TO DO SO WITH LOCAL OWNER DEVELOPERS.
UM, I'M GONNA SHOW YOU THREE EXAMPLES OF WHERE WE'VE BEEN ABLE TO TRANSITION PROPERTIES OUT OF THE HANDS OF A REAL ESTATE INVESTMENT TRUST OR A REIT INTO LOCAL OWNERS.
AND IT'S PAID AMAZING DIVIDENDS, UH, RIGHT OUT, RIGHT OUT OF THE RIGHT, OUT
[00:30:01]
RIGHT FROM THE VERY BEGINNING, FROM THE START OF THE PROCESS, UM, FACADE IMPROVEMENTS, JUST ANOTHER, UH, OBJECTIVE OF YOURS TO, UH, UH, MODERNIZE, UM, OUR, OUR SHOPPING CENTERS, UH, TO HELP THEM COMPLY WITH NEW REGULATIONS, UH, MODERN SIGN STANDARDS, FOR INSTANCE, THINGS THAT, UM, ALL WILL RESULT IN HIGHER QUALITY OF TENANTS AND, AND A MORE DIVERSE GROUP OF TENANTS WANTING TO LOCATE THERE.AND THEN FINALLY, UH, MUCH LIKE WITH THE OFFICE MARKET TENANT IMPROVEMENT GRANTS, UH, JUST THREE EXAMPLES, UH, THAT, THAT TO, TO, TO DEMONSTRATE HOW THIS WORKS.
UH, PRECISION INVESTMENT, UH, TOOK OVER, UH, THE EAST SIDE SHOPPING CENTER, UH, JUST ABOUT A YEAR AND A HALF AGO.
UM, WHEN THEY TOOK IT OVER, IT WAS 50% VACANT AT A 50% VACANCY RATE.
THE, THE REIT THAT CONTROLLED IT FOR SEVEN YEARS PRIOR DID NOT SIGN ONE NEW YEAR, ONE NEW LEASE IN THOSE SEVEN YEARS.
UM, BUT THEY, THEY, THEY LOST, UM, A NUMBER OF SEVERAL VERY GOOD BUSINESSES SINCE THAT TIME THAT PRECISION TOOK IT OVER.
YOU CAN SEE FOUR DIFFERENT RESTAURANTS, DIVERSE RESTAURANTS THAT COMPLIMENT, UH, OUR, OUR, OUR DIVERSE CITY, UH, BROUGHT IN SHOP COMPANIES AT PROMENADE NORTH, UM, UM, IN PHASE ONE, UH, UM, GUARANTEED A MINIMUM OF A $1 MILLION INVESTMENT IN THE FACADE IN THE, IN THE SITE ITSELF, ALREADY BRINGING IN CIVIL, POOR, HIBBETT, SPORTS, MR. MAX, ALL GREAT CONCEPTS.
AND THEN REALLY EXCITINGLY, UM, UH, JUST RECENTLY THE RICHARDSON HEIGHTS BEING PURCHASED BY JH REALTY ONCE THE ARA, UH, THE ALAMO DRAFT HOUSE, UH, SITUATION WAS STABILIZED.
AND, UM, PROUDLY, THEY, THEY'RE ALREADY TALKING ABOUT SIGNIFICANT RENOVATIONS IN THE WORKS, UH, FOR THE SHOPPING CENTER, AND WE'RE WORKING ON THEM WITH THINGS LIKE FACADE MODIFICATIONS, UH, LANDSCAPE UPGRADES, NEW LIGHTING FOR THE, FOR THE, UH, CENTER.
AND SO, UH, WE WILL REALLY BE, UH, EXCITING AND, AND SOMETHING THAT WE CAN BUILD ON ALAMO'S, UH, CORPORATE'S LONG-TERM LEASE, UH, FOR THE CENTER.
WE'RE ALSO VERY EXCITED TO ANNOUNCE, UM, THIS, UH, THIS PROJECT, UH, WHEN WE WERE HERE LAST TIME, WE WANTED TO INCLUDE A LITTLE BIT ABOUT THE RICHARDSON INNOVATION QUARTER, BUT WE HADN'T HAD NOT YET FINALIZED THIS DEAL.
UH, BUT TONIGHT WE'RE VERY EXCITED, UM, VERY PROUD TO ANNOUNCE, UM, THAT, UH, UM, BOTH AT AND T AND VERIZON WILL BE PLANTING A FLAG IN THE RICHARDSON IQ HQ, UH, JUST LIKE THE UNIVERSITY OF TEXAS DALLAS DID A YEAR AND A HALF AGO.
UM, WE'LL BE PARTNERING WITH UTD, AT AND T AND VERIZON ON A 5G TESTING AND EVALUATION LAB, UM, THAT WILL, UH, OCCUPY, UM, A, UH, ABOUT 70% OF THE REMAINING VACANT SPACE, UH, IN THE FACILITY.
UH, THIS NEW LAB WILL, AS YOU CAN SEE, WILL OFFER EXPOSURE TO, UH, RESEARCHERS, UH, ENTERPRISE PARTNERS, ENTREPRENEURS, ALL ABLE TO COME IN AND PARTNER NOT ONLY WITH VERIZON AND AT AND T, BUT THEIR PARTNERS, UM, AND THEY'LL BE ABLE TO, UH, TEST 5G NETWORK PERFORMANCE, INTEROPERABILITY, UH, AND, UH, SECURITY AND OTHER FEATURES.
THIS WAS A $42 MILLION GRANT THAT THE UNIVERSITY OF TEXAS AT DALLAS, UH, WAS ABLE TO SECURE, UH, THROUGH THE ACCELERATION, UH, OF COMPATIBILITY AND COMMERCIALIZATION OF OPEN RAN DEPLOYMENTS CONSORTIUM.
UM, AND THEY PICKED THE IQ TO CONTINUE, UH, TO BUILD ON, IN MY OPINION, THIS IS THE, UH, QUINTESSENTIAL PROJECT WHEN THAT WE ENVISIONED, WHEN WE SET UP OFF ON THIS JOURNEY, UH, OF THE IQ, UH, UH, A NUMBER OF YEARS AGO.
IT TAKES, UM, THE CITY, IT TAKES PRIVATE ENTERPRISE, AND IT TAKES THE UNIVERSITY, IT PLACES 'EM ALL UNDER ONE ROOF, AND IT ALLOWS THIS ECOSYSTEM THAT, THAT WE, WE'VE BEEN WORKING ON, UM, TO, UH, TAKE COMMERCIAL PRO TO TAKE INTELLECTUAL PROPERTY.
UM, A LOT OF THAT WILL COME FROM THE UNIVERSITY.
IT'LL HELP COMMERCIALIZE THAT PROPERTY.
IT'LL HELP START SMALL BUSINESSES.
AND IF WE DO OUR JOB IN THIS, UH, PARTNERSHIP, UH, WE'LL CREATE A LOYALTY TO RICHARDSON THAT THOSE BUSINESSES WILL WANNA REMAIN HERE, AND THEY'LL WANT TO GROW THEIR BUSINESS HERE FOR, FOR MANY YEARS TO COME.
AND SO THIS IS A, A REALLY EXCITING OPPOR, UH, REALLY EXCITING PROJECT, AND WE'RE, UM, REALLY PROUD OF, OF BEING ABLE TO KIND OF, KIND OF GET IT ACROSS THE GOAL LINE WITH SO MANY, UH, IMPORTANT PARTNERS.
LOOKING AHEAD, I'M EXTREMELY OPTIMISTIC.
UM, YOU KNOW, JUST, UH, UH, JUST SINCE, UH, OUR LAST BRIEFING, UH, THE CPI HAS, UH, COOLED IN THE, IN THE WORDS OF THE FED DOWN THE 2.9, UH, UH, FOR THE FIRST TIME, IT'S DIPPED BELIEF, UH, BENEATH THE 3% MARK SINCE MARCH OF 2021.
AND THE FED HAS TAKEN NOTICE OF THAT.
LIKEWISE, THE FED HAS TAKEN NOTICE OF, UM, UH, THE, UM, INCREASING CONCERN, UH, ABOUT THE SOFTENING OF THE JOB MARKET.
WHILE WE KNOW WHAT HAPPENED, I THINK IT WAS ON OUR FIRST NIGHT OF BUDGET RETREAT A COUPLE OF WEEKS AGO WITH, UH, THE STOCK MARKET BECAUSE OF THE, THE JOB, UH, NUMBERS REPORT.
AND SO, UM, THE FED IS SCHEDULED TO MEET IN JUST A FEW WEEKS ON THE 17TH AND 18TH.
UM, AND THERE'S A LOT OF, UH, VERY, UM, UM, GOOD, UM, FEELING AROUND, UH, THAT THEY WILL AT LEAST REDUCE THE INTEREST RATE BY, UH, 25 BASIS POINTS OR POINT.
UH, CUT WILL BE MADE BY BY THE FED.
UH, THERE'S SOME, THERE'S SOME, UH, EXPERTS THAT THINK IT COULD BE AS MUCH AS A, A, UH, A 0.75, UH, BASIS.
[00:35:01]
HAVING SAID THAT, UH, I THINK WE'RE POSITIONED REALLY WELL HERE IN RICHARDSON.NORTH TEXAS IS GONNA CONTINUE TO BE A DRIVING FORCE IN OUR WORLD'S ECONOMY.
UM, WE ARE NOT OUTTA THE WOODS.
WE ABSOLUTELY NEED TO, UH, TO, TO, TO, TO MONITOR THE ECONOMIC AND REAL ESTATE CYCLES THAT WE DISCUSSED.
UH, THE LAST TWO MEETINGS WE'VE HAD ON BUDGET.
UH, WE WILL NEED TO BE ESPECIALLY MINDFUL OF THE IMPACT OF THE EVOLVING OFFICE MARKET.
UM, WE ARE GOING TO CONTINUE TO SEE, UH, PROPERTIES THAT ARE, UH, THE LOANS ARE DEFAULTED, AND WE'RE GONNA CONTINUE TO SEE TENANTS THAT MOVE OUT.
UM, WHAT I'M PROUD OF AND WHAT I KNOW WE'VE WORKING REALLY HARD ON, IS TO MAKE SURE WE HAVE A PLAN TO MITIGATE THAT.
WE CANNOT ELIMINATE THAT, THAT'S GONNA HAPPEN, UM, BUT WE CAN MITIGATE IT.
AND I THINK THAT WE'RE POSITIONED REALLY WELL TO DO THAT.
AND BECAUSE OF THAT, WHEN CONDITIONS DO STABILIZE, I THINK WE'RE GONNA BE POISED TO REBOUND AS, AS MUCH AS ANY, UH, COMMUNITY HERE IN, IN NORTH TEXAS.
UH, WE'RE GONNA BE ABLE TO, TO CONTINUE TO, TO LEVERAGE THE MARKET TRENDS AND ESTABLISH, UH, THE MEANINGFUL RELATIONSHIPS THAT WE HAVE WITH THE DEVELOPMENT COMMUNITY.
UH, THEY'RE GONNA UNDERSTAND THAT WE HAVE A, A CLEAR VISION, UM, FOR HOW TO REBOUND AND HOW TO RECOVER.
AND I THINK WE'RE GONNA, WE'RE GONNA DO THAT REALLY WELL.
LEMME NOW TRANSITION, UH, TO, UM, UH, OUR TA TAX RATE DISCUSSION.
UM, WE, UH, HAVE RECEIVED THE, THE CERTIFIED ROLES, AND WE'VE SHARED SOME OF THESE NUMBERS WITH YOU PREVIOUSLY, BUT OUR CERTIFIED VALUE CAME IN AT JUST OVER 8% AT, UH, AT $26.1 BILLION.
UM, IF YOU, UH, FACTOR IN THE VALUES IN DISPUTE AND YOU NET OUT THE, UH, TIF INCREMENT THAT, UH, UH, NUMBER DROPS DOWN TO ABOUT 20, JUST OVER 24, UH, BILLION THAT'S AVAILABLE FOR, UM, BOTH GENERAL FUND AND DEBT SERVICE.
THAT'S AN INCREASE OF ABOUT 9.96%, AND THAT DOES INCLUDE ABOUT $135 MILLION OF NEW CONSTRUCTION.
UM, IF YOU LOOK AT OUR AVERAGE HOME VALUES, UM, THEY DID INCREASE, UM, MARKET WENT UP BY 10.18%.
TAXABLE WENT UP BY 10.37, UH, PERCENT.
UH, IF YOU LOOK AT THE, UH, TAXABLE ROAD, UH, ROLL CHANGE, UH, RESIDENTIAL WENT UP BY 10.38, AND COMMERCIAL WENT UP BY 3.95, AND THEN BPP STRONGLY WENT UP BY 12.41.
UM, IF YOU, UH, LOOK AT THE SPLIT, UM, WE'RE AT A 58, 2 4 VERSUS A 41 76 FOR COMMERCIAL AND RESIDENTIAL, UH, RESPECTFULLY, UH, 51, UH, 0.75% OF OUR RES OF OUR RESIDENTIAL ACCOUNTS SAW A MARKET VALUE INCREASE OF 10 OR MORE PERCENT.
THAT'S BEEN PRETTY COMMON IN THE LAST COUPLE YEARS.
65, UH, 0.56% OF RESIDENTIAL ACCOUNTS QUALIFIED FOR THE HOMESTEAD CAP THAT LIMITS THAT, UH, TAXABLE INCREASE TO 10%.
OUR CURRENT SENIOR EXEMPTION, YOU'VE RAISED EACH OF THE, THE LAST TWO YEARS FROM 1 0 5 TO 1 45, THAT CONTINUES TO EQUATE TO A 30%, UH, PROTECTION AGAINST MARKET VALUE FOR OUR SENIORS.
UM, AND THEN OUR SENIOR ACCOUNTS INCREASED AGAIN BY 2.27% TO 31.99% OF ALL RESIDENTIAL ACCOUNTS NOW RECEIVE, UH, THAT, UH, SENIOR EXEMPTION.
IF YOU LOOK AT THE TAXABLE, UH, VALUE HISTORY, UM, UH, JUST SHOW THIS FOR, FOR PERSPECTIVE, UM, THIS IS ABSOLUTELY IMPORTANT TO CONTINUE TO MONITOR.
WE ABSOLUTELY CONTINUE TO ASPIRE TO HIT THE 60 40, UM, UH, RATIO, 60% COMMERCIAL, 40% RESIDENTIAL.
UM, THIS IS JUST A LITTLE BIT OF CONTEXT ABOUT HOW YEAR TO YEAR DIFFERENT FACTORS CAN IMPACT, UH, AND OFTEN IMPACTS ABOUT A 1% CHANGE.
UM, THINGS, UH, LIKE WE'VE JUST DESCRIBED, UH, UH, ABATEMENTS, FOR INSTANCE, UM, WE OFTEN SEE AN UPTICK WHEN AN ABATEMENT ROLLS OFF BECAUSE ALL THAT VALUE IN THE COMMERCIAL REALM COMES BACK ON THE TAX ROLE.
AND SO WE WILL BE VERY MINDFUL OF THIS, UH, MOVING FORWARD.
I DID WANNA SHOW YOU, UM, UH, THIS IS, UH, SOME FEEDBACK THAT WE WERE ASKED TO PROVIDE BY COUNCILMAN HUTCH RUDDER.
UM, THIS IS OUR CITY COMPARISON COMMERCIAL VERSUS RESIDENTIAL TAX ROLL.
UH, YOU'LL SEE WE HAVE THE SECOND STRONGEST, UH, RATIO OF COMMERCIAL TO RESIDENTIAL AT 58 42, ONLY IRVING, UH, AT 68 32.
UM, YOU MIGHT ASK, WHAT IS THAT ABOUT? UH, ONE OF THE BIGGEST DRIVERS ON THAT BELIEVE ON THAT WE BELIEVE IS, UH, THE NUMBER OF MULTIFAMILY UNITS THAT THE, UH, CITY OF IRVING HAS, WHERE MULTIFAMILY IS CONSIDERED COMMERCIAL HERE.
UM, AND, UM, AND SO WITH, UM, SIGNIFICANTLY MORE, UM, MULTIFAMILY UNITS, UM, WE BELIEVE THAT THAT COULD BE LEADING TOWARDS THAT, UH, VERY STRONG 68, 32, BUT OVERALL, A VERY, UH, A VERY POSITIVE NUMBER HERE AS IT RELATES TO A TAX BURDEN WITH THE, WITH RICHARDSON HERE IN OUR COMPARABLE CITIES, UH, BEING, BEING THE SECOND STRONGEST.
WITH RESPECT TO THE RATE RECALL, THE PROPERTY TAX RATE IS, UM, IS THE ADOPTED RATE ASSESSED ON TAXABLE VALUE OF BOTH REAL AND BUSINESS PERSONAL PROPERTY.
IT'S COMPRISED OF TWO COMPONENTS, MAINTENANCE AND OPERATIONS, AND THE DEBT RATE, UH, THE NEW NO NEW REVENUE RATE, UM, IS THE RATE THAT WOULD ESSENTIALLY GENERATE THE SAME REVENUE AS THE PRIOR YEAR, SO NO ADDITIONAL REVENUE.
AND THEN THE VOTER APPROVAL RATE IS THE HIGHEST RATE THAT THE COUNCIL CAN ADOPT WITHOUT A MANDATORY RATIFICATION ELECTION.
IT'S ESSENTIALLY REFERRED TO AS A 3.5% CAP.
IF YOU, IF YOU, IF YOU, UH, THINK BACK TO SB TWO, UM, WE DO HAVE A INCREMENT THAT IS REMAINING FROM PRIOR YEAR.
THAT IS, UH, 0.00493, UM, OF, UH, THE TAX RATE, UM, THAT, UM, IS BASED ON THE CURRENT TAXABLE VALUE,
[00:40:01]
UH, CAN BE APPLIED ABOVE AND BEYOND THAT, UM, THAT THREE POINT HALF PERCENT.UM, WHAT WE'VE PROPOSED TO YOU AND WHAT YOU CALL THE, UH, PUBLIC HEARING FOR THE TAX RATE AT, UM, IS THE 0.54218, UM, THAT IS THE VOTER APPROVAL RATE.
WITH THAT, UH, A SMALL AMOUNT OF INCREMENT ADDED TO IT.
UH, IMPORTANTLY, IF THAT INCREMENT, UM, UH, WAS, UH, NOT USED THIS YEAR, IT WOULD BE LOST.
AND, UH, GIVEN SOME OF THE SALES TAX, UH, CHALLENGES THAT WE ARE EXPERIENCING, WE APPRECIATE THE OPPORTUNITY TO, TO, UH, MOVE FORWARD IN THAT DIRECTION.
THIS IS JUST ANOTHER WAY OF LOOKING AT THE SAME, AGAIN, THE, THE VOTER APPROVAL RATE AND THE PROPOSED RATE IS THE POINT 54 2 1 8.
EVERYTHING THAT YOU WILL SEE MOVING FORWARD, UM, IN TERMS OF THE PROPOSED BUDGET IS, UH, BASED ON THAT TAX RATE BEING, UH, UH, UTILIZED AND APPROVED.
UM, SO IF YOU LOOK AT, UH, HOW WE COMPARE TO OUR PURE CITIES, UH, LAST YEAR WE WERE, UH, HAD THE SIX LOWEST, UH, RANK, UH, TAX RATE, UH, RANKED RANKING TAX RATE, EXCUSE ME, UH, COMPARED TO OUR, UH, UH, CITIES, IF WITH THE NEW PROPOSED RATE, UM, YOU SEE THERE, UH, THERE'LL BE FOUR CITIES THAT'LL HAVE A LOWER TAX RATE.
NOW, BE MINDFUL, AND WE ARE ALWAYS MINDFUL THAT THIS A POINT IN TIME AND THAT THESE RATES COULD ALSO, UH, CHANGE.
HOWEVER, THERE ARE SOME OF THESE, THERE ARE SOME CITIES ON THIS THAT ARE ACTUALLY PROPOSING A TAX INCREASE, UM, BECAUSE TAX RATE INCREASE, EXCUSE ME, BECAUSE OF SOME OF THE FINANCIAL, UH, SITUATIONS THAT THEY'RE DEALING WITH, UM, THE PROPERTY TAX RATE IN TERMS OF HISTORY, UM, WE ARE RETURNING, UH, BACK TO A PRE 2006, UH, TAX RATE WITH, UH, THIS, THIS 1.877 TAX CUT, UH, THAT YOU'RE, UH, THAT YOU'RE, UM, UH, UH, CONSIDERING HERE, UH, AGAIN, UH, YOU KIND OF JUST A QUICK, UH, REMINDER HERE THAT, THAT THE 52 5 1 6, WE HAD A BOND PROGRAM IN 2006 WHERE VOTERS APPROVED A, UH, 5 CENT INCREASE IN 2010, VOTERS ACTUALLY IMPROVED.
UM, AN ADDITIONAL, UM, 6 CENT INCREASE WE WERE ABLE TO REDUCE IN 15.
UM, AND THEN OF COURSE, THE BIG REDUCTION, UH, COMING BACK IN, UM, 20, UH, 22, I THINK BACK THEN ABOUT A 5.40 CENT, UH, REDUCTION IF I, IF I REMEMBER.
AND THEN, UH, THIS YEAR, AGAIN, RE REDUCING THE TAX RATE BY 1.877%.
UH, RESIDENTIAL IMPACTS THE CURRENT RATE AND THE VOTER APPROVAL RATE THERE THAT YOU SEE, WHICH IS THE RECOMMENDED RATE.
SO THE AVERAGE RESIDENT TAX INCREASE, UH, IS ABOUT $131 FOR RES FOR, UH, THE AVERAGE RESIDENT.
AND THEN FOR THE AVERAGE SENIOR, IT'S ABOUT A $93 TAX INCREASE.
UM, AND THEN IF YOU KIND OF COMPARE THAT TO, UH, THE CURRENT RATE, UM, UM, THE SAVINGS FROM, FROM THE PROPOSED RATE FOR AVERAGE RESIDENT, $73, AN AVERAGE SENIOR YEAR WOULD BE $52.
UM, AGAIN, JUST A REMINDER HOW THE CITY COMPONENT IS.
UM, THE CITY, UH, TAXES ARE, ARE A COMPONENT OF A MUCH, A MORE CONSEQUENTIAL TAX BILL, AND YOU CAN KIND OF SEE THERE, UM, IN, UH, DALLAS COUNTY, IT'S ABOUT 24% OF THE TOTAL TAXES.
AND IN COLLIN COUNTY, IT'S ABOUT 29% OF THE TOTAL TAXES.
AGAIN, HAVING THAT AS AS DEEP CONTEXT.
UM, AND, UM, LOOKING HOW WE WOULD APPLY THIS, WE WANTED TO REMIND YOU OF SOME OF THE DRIVERS BEHIND OUR, OUR KEY KEY AREAS.
WE TALKED ABOUT THE ECONOMIC FACTORS.
OF COURSE, YOUR GOALS AND STRATEGIES ARE FIRST AND FOREMOST ON OUR MIND, THE DEEP, THE FEEDBACK THAT YOU HAVE PROVIDED TO US THROUGH THE DEEP DIVES.
UM, EVERY, EVERY YEAR I DO AN ANNUAL ORGANIZATIONAL ASSESSMENT.
UH, WE DEPEND GREATLY ON OUR BOARDS AND COMMISSIONS FOR INPUT.
AS LIKEWISE, OUR HOMEOWNER AND NEIGHBORHOOD ASSOCIATION PRESIDENTS, UM, WE HAVE KEY INSTITUTIONAL PARTNERS AND BUSINESS AND DEVELOPMENT, UH, PARTNERS THAT WE, UM, UH, ARE REGULARLY TAKING FEEDBACK FROM.
AND THEN OF COURSE, WE HAVE PLANS THAT YOU HAVE ADOPTED THAT WE NEED TO PROGRESS IN SPECIAL IN INITIATIVES, UH, AS WELL AS, UH, BOTH INTERNAL AND EXTERNAL, UH, ASSESSMENTS AND VALUATIONS.
UM, OUR KEY, UH, UH, FOCUS AREAS AGAIN THIS YEAR, RECRUITMENT AND RETENTION, UH, PUBLIC SAFETY, INFRASTRUCTURE AND ECONOMIC DEVELOPMENT.
UM, AGAIN, UH, HERE, NOT A SURPRISE, UM, THAT, UH, RECRUITMENT AND RETENTION IS AT THE FOREFRONT OF NOT ONLY PUBLIC ENTITIES, BUT PRIVATE ENTITIES WITH ONLY EIGHT, UH, 80, UH, WORKERS.
UH, NOW FOR EVERY A HUNDRED JOBS IN TEXAS, UM, RECRUITMENT AND RETENTION CONTINUED TO BE A PRIORITY, UH, WITH YOUR, UM, UM, UM, UM, GUIDANCE AND WITH, AND WITH YOUR SUPPORT, WE HAVE IMPLEMENTED A LOT OF STRATEGIES, UH, UH, SINCE, UH, UH, 20, UH, 22 THAT HAVE RESULTED IN A MUCH IMPROVED, UH, SITUATION FOR US.
I WON'T READ ALL THESE, BUT I WANTED TO LIST THEM BECAUSE OF THE SUPPORT THAT YOU'VE PROVIDED ON EACH OF THESE.
BUT IT HAS PAID DIVIDENDS FOR US.
YOU SEE, OUR APPLICANT ACTIVITY, UH, IS UP, UH, AT THIS POINT IN JULY.
YOU SEE WE'RE UP ABOUT, UH, 250 OR SO APPLICATIONS, BUT IF YOU CONTROL FOR THE FIRE EXAM THAT WE, UH, HAD LAST YEAR IN FY 22, 22, 23, YOU WOULD TAKE, YOU'D NET OUT APPROXIMATELY A THOUSAND OF THOSE APPLICATIONS BECAUSE WE'RE NOT HAVING THAT EXAM THIS YEAR BECAUSE WE'RE FULL.
SO WE'RE ACTUALLY, UH, MORE LIKE 6,500 VERSUS ABOUT 5,200.
SO ALMOST 1300 MORE APPLICATIONS THIS YEAR.
THAT'S RESONATING IN OUR STAFFING.
YOU CAN SEE HERE, UM, UH, UH, ALMOST A TWO AND A HALF PERCENT REDUCTION.
[00:45:02]
AND THE NUMBER OF VACANT POSITIONS THAT WE HAVE, UM, LOOK AT THAT NUMBER ALMOST BACK TO THE 2019 LEVEL WITH RESPECT TO THE NUMBER OF FIELD POSITIONS.UM, AND AGAIN, THAT, THAT'S, UH, LARGELY IN PART, IN PART TO HOW, UH, COMPETITIVE YOU'VE ALLOWED US TO BE.
I'M VERY PROUD OF THE POLICE NUMBER, THE 5.2 VACANCY RATE.
UM, THERE'S ALWAYS A LITTLE CHURN, BUT IT'S REALLY IMPORTANT TO LOOK AT THE POLICE OFFICER VACANCIES.
UM, WHEN WE, WHEN I, MY FIRST BUDGET, THAT NUMBER WAS 18, SO, AND WE'VE BEEN ABLE TO REDUCE THE VACANT NUMBER OF OFFICER POSITIONS BY FOUR WITH NEARLY A HUNDRED SWORN OFFICERS.
I THINK THAT 4% PROBABLY IS JUST THE REGULAR ATTRITION THAT WE'RE GONNA SEE.
SO I DON'T KNOW THAT WE EVER GET FULLY, UH, STAFFED FOR VERY LONG 'CAUSE WE RETIREMENTS AND PEOPLE HAVING DIFFERENT LIFE CIRCUMSTANCES.
SO I THINK THAT'S A GREAT NUMBER.
LOOK AT DISPATCHERS, JUST ONE, UH, DISPATCHER AT ONE TIME, WE WERE DOWN 13 DISPATCHERS.
UM, AND SO IT'S PAYING BIG DIVIDENDS, WHICH ARE ALLOWING US TO DO, BUT WE STILL HAVE WORK TO DO IN SOME OF THE MORE DIFFICULT TO FIELD POSITIONS, PARTICULARLY THE FRONTLINE POSITIONS THAT THE FIELD POSITIONS, AS OUR SPEAKER MENTIONED, THAT ARE OUT THERE IN THE 105 DEGREE WEATHER AS WELL AS THE ZERO DEGREE WEATHER.
UM, THOSE POSITIONS STILL CONTINUE TO BE VERY DIFFICULT TO, TO FILL.
AND THEN THE TRADE POSITIONS, IF YOU LOOK AT ENGINEERING AND BUILDING INSPECTION, UH, THE, UH, HVAC, THE ELECTRICAL, THE MECHANICAL, AND THE PLUMBING, ALL VERY DIFFICULT TO, UH, FIND IN ADDITION, UH, A, AN IMPORTANT REASON NOT TO LET, UH, NOT TO TAKE OUR FOOT OFF THE GAS HERE WHEN IT COMES TO RECRUITMENT AND RETENTION IS, UH, JUST WHERE WE ARE AS AN ORGANIZATION, UM, IN TERMS OF SUCCESSION PLANNING, ENSURING, UM, THAT WE CONTINUE TO DELIVER THE HIGHEST, UH, AND MOST, UH, QUALITY SERVICES AND PROGRAMS WE CAN TO THE COMMUNITY.
THIS IS A BIG CONSIDERATION ON MY MIND.
IF YOU SEE HERE WE'VE GOT 50%, UH, 47% OF OUR ORGANIZATION, OR 483 EMPLOYEES HAVE FIVE OR LESS YEARS EXPERIENCE WITH THE CITY.
IF YOU COUPLE THAT WITH THE FACT THAT TODAY, UH, 272 EMPLOYEES COULD RETIRE, UM, THAT EQUATES TO ABOUT 74% OF OUR ORGANIZATION THAT COULD ACTUALLY RETIRE TODAY OR THAT HAS LESS THAN FIVE YEARS EXPERIENCE.
MY GOAL IS TO HANG ON TO SOME OF THOSE MORE EXPERIENCED FOLKS FOR AS LONG AS WE CAN SO THAT THEY CAN CONTINUE TO SHARE, UH, THE INSTITUTIONAL KNOWLEDGE, UH, THE EXPERIENCES, THE UNDERSTANDING OF THE COMMUNITY THAT THEY HAVE WITH THOSE 483 EMPLOYEES SO THAT WE CAN CONTINUE, UM, NOT TO JUST DELIVER SERVICES IN AN EFFICIENT AND HIGH QUALITY WAY, BUT IN THE RICHARDSON WAY.
UM, UM, COUNCIL VARRIO, YOU ASKED TO, UM, UH, GET A LIST OF THE BENCHMARK CITIES THAT WE USE FOR OUR, UM, UH, UH, COMPENSATION COMPARISON PURPOSES AND, AND MANY OTHER ACTUALLY, UH, COMPARISON PURPOSES.
AND SO WE WANTED TO LIST THOSE OUT FOR YOU.
UM, IF YOU LOOK AT OUR PUBLIC SAFETY PAY SURVEY AS IT STANDS TODAY, UM, WE'VE DONE SOME GREAT WORK IN THE LAST TWO YEARS.
UH, AND WHILE THE RANK AT BOTH MINIMUM AND MAXIMUM IS THE, THE LOWER QUADRANT OF THE 13 CITIES, UM, IT'S MORE IMPORTANT TO LOOK AT THE PERCENT, BECAUSE AT ONE TIME, WE, THE RANK WAS, UH, THAT LOW, BUT THE PERCENT WAS SIGNIFICANTLY MORE, UH, UH, SIGNIFICANTLY HIGHER.
SO, UM, WHILE WE'RE, WE'RE, WE'RE, WE MAY NOT BE WHERE WE WANT ON THE RANK, WE'RE IN A POSITION ON THE PERCENT BELOW, UH, THE, THE BEING RANKED FORTH THAT IS MUCH MORE DESIRABLE.
SAME IS TRUE IN OUR GENERAL EMPLOYEE SURVEY COMPARISON.
YOU SEE THE MINIMUM PERCENTS AND THE MAXIMUM CENTS.
UM, THE LIVING WAGE, AS WE DISCUSSED, HAS, HAS JUMPED OVER TO $22 AND 6 CENTS.
UM, UH, 20% OF OUR FULL-TIME EMPLOYEES, UM, UH, THAT, UH, IMPACTS 150 FULL-TIME EMPLOYEES THAT COMES INTO CONSIDERATION.
AND THEN 179 PART-TIME EMPLOYEES.
UM, WE TALKED ABOUT THE COMPRESSION ISSUES.
UM, WE WENT BACK AND WE STUDIED THAT EVEN FURTHER, AND I'M HAPPY TO SHARE WITH YOU, UH, AND I'LL START ON THAT POINT, THAT, UM, UH, WE'VE BEEN ABLE TO RAISE THAT MINIMUM STARTING SALARY TO $20 AN HOUR NOW ON FOR A, FOR A FULL-TIME EMPLOYEE, THAT THAT'S ABOUT A, ABOUT $1,080 ADDITIONAL A YEAR, UH, VERY IMPORTANT TO THOSE FRONTLINE EMPLOYEES.
UM, WE FEEL LIKE WE CAN, UM, BECAUSE WE'RE NOT MOVING THE WHOLE RANGE, WE'RE JUST ADJUSTING THE MINIMUM SALARY, SO WE WON'T HAVE COMPRESSION ON THE HIGH SIDE.
WE MAY HAVE THE HIGH SIDE OF A, OF A, UM, RANGE, AND THEN THE NEXT HIGHEST POSITION, BUT WE MIGHT HAVE SOME COMPRESSION ON THE LOWER SIDE, BUT WE CAN, WE FEEL LIKE WE CAN DEAL WITH THOSE AS ONE-OFF UNIQUE SITUATIONS.
UM, AND SO WE ARE, WE'RE EXCITED TO, TO BE ABLE TO RAISE THAT ABOUT 55 OR CENTS, UH, ABOVE, UH, WHERE WE WERE AT THE RETREAT, AGAIN, FOR POLICE, WE'RE LOOKING AT A 3%, UH, MERIT BASED ADJUSTMENT, UH, IN ADDITION TO, UH, STEPS, UM, FOR, UH, 36 OF THE 168 SWORN IN, 26 OF THE 63 SWORN AND FIRE, AGAIN, A 3% MERIT BASED ADJUSTMENT.
AND THEN STEPS, UH, FOR 70 OF THE 178 SWORN.
AND THEN FOR GENERAL PERSONNEL, WE'RE LOOKING AT AGAIN, UH, MERIT BASED ADJUSTMENTS, UP TO 3%, UM, FOR, UH, ALL POSITIONS.
UM, AGAIN, AGAIN, LOOKING AT THE, THE RANK VERSUS THE PERCENT BELOW FOUR, UM, THESE ARE GOOD POSITIONS TO BE
[00:50:01]
IN.UM, ALL THINGS CONSIDERED THIS YEAR.
UM, YOU CAN SEE ON, ON POLICE, UM, ON THE MINIMUM THREE OF THE FOUR POSITIONS.
WE ARE RANKED IN THE FOURTH, AND THEN ON MAXIMUM, UM, WHILE AGAIN, WE'RE FIVE, SIX, AND SEVEN, THE PERCENT DIFFERENCE IS VERY NEGLIGIBLE.
AGAIN, THE, THE RANK NUMBER, UM, DOESN'T LOOK AS STRONG AS WE'D LIKE TO BE, BUT THE PERCENTS ARE ALL IN A MANAGEABLE AREA.
AND THEN ON THE MAXIMUM, UH, DOING MUCH BETTER.
I, I WILL, UH, RECONFIRM FOR YOU, UM, THAT WE'VE EX WE'VE MET, UH, I'VE MET WITH BOTH, UH, ON THE, UH, POLICE ASSOCIATION AND THE FIRE ASSOCIATION PRESIDENTS.
WE'VE HAD GREAT DIALOGUE ABOUT THE SITUATION THAT WE HAVE, UM, FINANCIALLY AS A CITY.
AND I'M VERY HAPPY TO REPORT TO YOU THAT THEY'RE VERY SUPPORTIVE OF THIS PLAN AND THAT, UM, I REALLY APPRECIATE, UH, BOTH, UH, POLICE AND FIRES, UM, UH, DESIRE TO BE PART OF A BIGGER SOLUTION AND DO WHAT'S RIGHT FOR THE ENTIRE CITY.
AND THAT REALLY CAME THROUGH, UH, THIS YEAR.
UH, ON THE GENERAL EMPLOYEE SURVEY.
YOU SEE A LOT OF, UH, SITUATIONS ARE REALLY RECTIFIED, UM, WITH THE, UH, 3%.
SO VERY STRONG POSITIONING ON THE PUBLIC, ON THE, UH, GENERAL EMPLOYEE SIDE ON PUBLIC SAFETY.
AGAIN, UH, THE PERCENT CHANGE INCREASING BY ABOUT TWO AND A HALF PERCENT OVERALL FOR POLICE, FIRE EMERGENCY MANAGEMENT ON THE FIRE SIDE, UM, WE HAVE, UH, CAPITAL REPLACEMENT FUND WHERE WE'RE REPLACING ONE OF THE FOUR COMMAND VEHICLES THAT'S ON A FOUR YEAR, UM, UH, ROTATION.
UH, THERMAL IMAGERS ARE WHAT THEY USE WHEN THEY GO INTO FIRES TO BE ABLE TO SEE THROUGH THE SMOKE, THE, UH, RESCUE TOOLS, UH, SAWS THAT ARE ALWAYS IMPORTANT TO KEEP, UH, UM, UM, REPLACING.
THEY TAKE SUCH A BEATING IN THE, IN THE FIELD.
THE PRESSURE VENTILATION FANS ARE WHAT THEY USED TO CLEAR OUT SMOKE OUT OF A HOUSE.
AND THEN YOU SEE A NUMBER OF IMPROVEMENTS TO THE FIRE, UH, TRAINING CENTER.
UH, HARD TO BELIEVE THAT, UM, YOU KNOW, THAT'S, UH, UH, NEARLY 15 YEARS OLD NOW, THE FIRE TRAINING CENTER.
AND SO, UM, CONTINUING TO PROVIDE, UM, GOOD MAINTENANCE ON THAT.
UH, SOME STATION BAY IMPROVEMENTS, UH, THAT'LL BE DONE AT VARIOUS, UM, AT VARIOUS STATIONS.
AND THEN THE, UH, DEBT FINANCING, UH, THE AERIAL PLATFORM TRUCK, AND THEN THE, UH, MICU, UH, ON THE POLICE SIDE, UH, REPLACEMENT OF 14 DIFFERENT VEHICLES.
MOST OF THOSE PATROL, UH, FORENSIC IMAGING SYSTEM, UH, UH, REPLACEMENT, UH, FOR THE, FOR THE CRIME LAB THAT WILL ALLOW THEM, UM, TO, UM, REALLY BE ABLE TO BE MUCH MORE SOPHISTICATED IN THEIR, THEIR, UM, I GUESS EVALUATION AND ASSESSMENT OF DIFFERENT KINDS OF FLUIDS THAT ARE FOUND AT CRIME SCENES, UH, BUT ALSO ALLOW 'EM TO TAKE THIS SYSTEM OUT INTO THE FIELD WHEN THAT'S NECESSARY, UH, TO BUILD ON THEIR, THEIR DRONE SYSTEM, UH, BY BRINGING IN A THERMAL DRONE.
WE'VE ALL SEEN THE GREAT VIDEOS, UM, AND HOW THEY'RE USING THESE DRONES TO, UH, EFFECTIVELY, UH, COMBAT CRIME AND, AND TO SAFELY, UH, FOR BOTH, UH, PD AND FOR, UM, THE, A SALIENT TAKE THE, UH, FOLKS IN THE CUSTODY, UH, BY HAVING THIS ADDITIONAL INTELLIGENCE AND THEN COMMUNITY RELATIONS AND, UH, AND, AND, UH, PROGRAMS INCREASING AGAIN FOR THE SECOND YEAR BY $10,000 TO ENHANCE PROGRAMS LIKE UNIDOS, UM, FOR, FOR, UH, YOUR BENEFIT AND THE COMMUNITY'S BENEFIT.
UM, JUST LOOKING BACK OVER THE COURSE OF THE, THE LAST THREE YEARS AS WE WORKED ON BUDGETS, UM, A 27.6% INCREASE IN PUBLIC SAFETY OVER THAT TIME PERIOD.
AND SO A, A, A REAL SIGNIFICANT, UH, UH, SIGNAL THAT WHEN WE SAY THESE ARE FOCUSED AREAS, UM, THAT THE POLICY AND THE BUDGET SUPPORTS THAT INFRASTRUCTURE, UM, CONTINUING TO BUILD ON OUR SCREENING WALL AND ENTRY FEATURE AND BRIDGE PROGRAM.
WE SPENT $10 MILLION OUT OF THE OH SIX AND 10 BOND PROGRAMS TO CONSTRUCT THESE, UM, ENTRY FEATURES AND, AND SCREENING WALLS.
UH, A LOT OF THOSE NOW 10 TO 15 YEARS OLD AND, AND REALLY NEED TO BE MAINTAINED PROPERLY.
UH, TRANSPORTATION AND MOBILITY, UH, WE DESCRIBED IN THE DEEP DIVE A NUMBER OF, UH, SEVERAL INFLATIONARY PRESSURES.
UM, ALL OF THOSE HAVE BEEN ACCOUNTED FOR SO THAT WE CAN CONTINUE TO DO THINGS LIKE BIKE LANES AND OTHER, UH, UH, MARKINGS ON THAT FIVE YEAR ROTATION THAT WE WERE ASPIRING TO, UH, TO GET TO, UM, THE SPECIAL PROJECT FUND, UH, NEW SCHOOL, UH, ZONE FLASHES.
I THINK THESE ARE ACTUALLY PROBABLY IN ALREADY.
UH, NO, THESE ARE, THESE ARE PLANNED FOR NEXT YEAR.
UM, AND THEN A NUMBER OF KEY INITIATIVES AROUND, UM, THE INFRASTRUCTURE, THE BOTH THE, UH, YEAR FOUR OF THE 21 AND YEAR TWO OF THE 23 BOND PROGRAMS, UH, WILL CONTINUE WITH OUR, UH, SIGNIFICANT WATER AND WASTEWATER PROJECTS THAT WE'RE, UH, WORKING ON TO REBALANCE THE 7 67 AND 8 25 ZONES.
UH, WE TALKED ABOUT, UM, INCREASING, UM, UM, UH, THE, UH, DRAINAGE FUND, UM, UM, UM, FUNDING SO THAT WE COULD DO MORE, UH, PROJECTS IN ADDITION TO KEEPING UP WITH THE INFLATIONARY PRESSURES THAT WE SEE ON THE SERVICES AND PROGRAMS THAT WE HAVE OUT OF THAT, A 3.9% INCREASE FOR OUR DEDICATION TO STREET ALLEY PARKS AND FACILITY MAINTENANCE FUNDS.
UH, AND THEN A COUPLE OF CAPITAL IMPROVEMENTS THERE.
AGAIN, MUCH LIKE, UH, THE PUBLIC SAFETY, YOUR, UM, YOUR BUDGETING AND POLICY IS, UH, SPOKE VOLUMES TO THE KEY FOCUS AREA OF INFRASTRUCTURE INCREASING 27% OVER THE LAST THREE YEARS.
UH, ON THE ECONOMIC DEVELOPMENT
[00:55:01]
FRONT, UM, I WANNA REMIND EVERYONE THAT WE USE REALLY THREE PRIMARY FUNDING SOURCES TO PROMOTE ECONOMIC DEVELOPMENT.THE FIRST IS THE GENERAL FUND.
UH, YOU'LL SEE THAT THAT NUMBER, UM, IS $627,000.
UH, WE ARE TAKING AN OPPORTUNITY THIS YEAR, UH, AT THE SECOND, UH, ANNIVERSARY OF BRINGING THE ECONOMIC DEVELOPMENT PROGRAM IN-HOUSE, UH, TO, UM, UH, EVALUATE AND, AND, AND REORG A LITTLE BIT.
AS I MENTIONED PREVIOUSLY, UM, THE NUMBER 6 27 APPEARS TO BE, UH, DOWN SOMEWHAT FROM A PRIOR YEAR, BUT YOU HAVE TO REALLY LOOK A LITTLE BIT CLOSER AT WHERE SOME OF THAT FUNDING, UH, FOR THE, THAT THOSE, UH, THOSE STAFF RESOURCES AS WELL AS OTHER PROGRAMS ARE BEING FUNDED FROM, UH, MOVING FORWARD.
UM, WE DID, UH, TAKE ONE STAFF PERSON OUT OF ECONOMIC DEVELOPMENT AND PUT THEM UNDER GREG'S LEADERSHIP AND, AND COMMUNICATIONS.
THAT'S A MARKETING, UH, MANAGER.
UM, GREG WILL, UH, OVERSEE, UM, THAT PERSON LIKE HE DOES OTHER, UM, UH, MARKETING, UH, COORDINATORS AND SPECIALISTS.
UM, AND ESSENTIALLY, UH, THE ECONOMIC DEVELOPMENT DEPARTMENT WILL BE THAT, UH, PERSON'S CUSTOMER, INTERNAL CUSTOMER, IF YOU WILL.
UH, AND GREG WILL ADD GREAT VALUE TO, UM, THE EFFORTS AND HAS ADDED A GREAT VALUE TO THOSE EFFORTS.
UH, IN ADDITION, UM, IF YOU LOOK AT, UH, THE ECONOMIC DEVELOPMENT FUND, UM, THAT FUND IS ALSO BEING INDEXED BY THE 3.95%.
SO FOR THE FIRST TIME IN THE FUND'S HISTORY, OVER $2 MILLION, UH, AND ANNUALLY BE DEDICATED TO THAT FUND.
UM, AND THEN YOU SEE OUT OF THAT PARTICULAR FUND WE'RE, UH, UH, FOCUSING ON INTERNATIONAL BUSINESS DEVELOPMENT, UH, UH, RECENTLY A DELEGATION THAT VISITED INDIA.
AND THEN, UH, IMPORTANTLY, UH, JUST IN ABOUT SEVEN DAYS, UH, EIGHT DAYS, ACTUALLY, ANOTHER REALLY EXCITING ANNOUNCEMENT THAT, UH, WE'LL MAKE ABOUT THE IQ THAT THE ECONOMIC DEVELOPMENT FUND WILL HELP WITH.
AND THEN THE TIFF FUND, AS WE BEGIN TO FOCUS ON TIF ONE IN PARTICULAR, UM, FOR THAT INTERNATIONAL OPPORTUNITY, $90,000 IN IQ HQ ENHANCEMENTS, UH, AND EDLE, ECONOMIC DEVELOPMENT PERSONNEL COST SET OFFSET OF $123,000.
UM, AND, UM, AND THEN CORE DISTRICT PROGRAMMING AND PLACEMAKING INITIATIVES FOR A TOTAL OF $350,000.
SO THOSE ARE THINGS, UH, LIKE, UM, UM, THE, UM, CULTURE IN THE CORE LIGHT UP LOCKWOOD, UM, UH, LUNAR NEW YEAR, BUT ADDITIONAL THINGS, UH, THAT HAVE BEEN PLANNED, UH, WITH THE HELP OF THE, WITH THE HELP OF THE BUSINESS MERCHANTS, UH, IN THE AREA, UH, THINGS LIKE UPDATED SIGN TOPPERS TO HELP DISTINGUISH THE SUBDISTRICTS EVEN MORE.
NEW SIGN BANNERS, UM, ADDITIONAL POPUP EVENTS.
UM, UM, JUST A VARIETY OF THINGS TO KIND OF, TO CONTINUE TO CREATE A SPECIAL PLACE, UH, IN THE CORE DISTRICT.
ONE ADDITIONAL BUDGET CONSIDERATION TO, TO JUST, UH, JUST REMIND YOU OF IS THAT, UM, WE ARE PROPOSING TO TRANSFER $1 MILLION FROM THE HOTEL MOTEL FUND BACK TO, UH, UTILIZE FOR A NUMBER OF KEY PROJECTS.
JUST AS A REMINDER, UM, WHEN, UH, UH, COVID, UH, REALLY OCCURRED AT INITIALLY, WE DIDN'T, UH, FULLY UNDERSTAND WHAT TO EXPECT.
AND SO TO STABILIZE FY 1920, WE TRANSFERRED A A MILLION DOLLARS FROM THE GENERAL FUND INTO THE HOTEL MOTEL FUND.
WE DID THE SAME THING BACK IN, UH, THE FOLLOWING YEAR IN 2021.
UM, HOTEL MOTEL TAXES REALLY RECOVERED, UH, VERY QUICKLY TO PRE PANDEMIC LEVELS, UH, IN AS LITTLE AS 18 MONTHS, AND REALLY OUTPERFORMED A VERY CONSERVATIVE APPROACH TO BUDGETING IN, IN THE HOTEL MOTEL FUND THAT WE, UM, DESCRIBED.
SO AS A RESULT OF THAT STRONG PERFORMANCE AND THE FACT THAT IT HAS A HOTEL, MOTEL FUND HAS A FUND BALANCE, I THINK BOB OF, UH, UH, TWO OVER 200 DAYS OR SO, UM, WE'RE, UH, PROPOSING TO, UH, TRANSFER A MILLION DOLLARS BACK AND TAKE ON A, A NUMBER OF VERY IMPORTANT GENERAL FUND, UH, SPECIAL PROJECTS.
UH, ONE THERE, THE RESURFACING OF THE HEIGHTS POOL, UH, AN A DA TRANSITION PLAN.
THIS $150,000 WE THINK WE CAN LEVERAGE AND POTENTIALLY, UM, YOU KNOW, ACHIEVE, I THINK, UH, SIX, $700,000 MORE TO DO A COMPLETE, UH, THE, THE CITY'S FIRST COMPLETE A DA TRANSITION PLAN, UH, THE HOUSING NEEDS ASSESSMENT THAT WE DISCUSSED WITH YOU.
UM, UH, I MENTIONED THE, THE FIRE STATION, BAY IMPROVEMENTS AND THE OTHER CAPITAL, UM, UH, FOR FIRE AND, AND PD, THE CITYWIDE CYBERSECURITY RISK ANALYSIS AND ASSESSMENT.
AND THEN FINALLY, THE RICHARDSON REPLANTS PROGRAM THAT, UH, YOU ASKED US TO CONSIDER.
UH, THIS $200,000 AT A MINIMUM, WILL, UH, HAVE US BE ABLE TO, UM, PROVIDE, UH, UH, 1000, UH, TREES TO RICHARDSON RESIDENTS BEFORE THE FIRST ANNIVERSARY OF, UH, THE MAY 28TH STORM, AS WELL AS PLANT AN ADDITIONAL, UH, 100 LARGER CALIBER TREES BACK IN OUR PARKS.
AND IN OUR, UH, COMMON, OUR, OUR, OUR CITY, UH, OPEN SPACE, UH, TO HELP START THE RECOVERY.
UM, AND, AND, AND ACTUALLY WE THINK THAT THAT $200,000 POTENTIALLY COULD GO A LOT FARTHER THAN THAT.
UM, AS WE'VE COMMITTED TO YOU PREVIOUSLY, WE'LL CONTINUE TO RESEARCH THIS.
UM, WE ARE EXPLORING A NUMBER OF GRANT OPPORTUNITIES THAT WE MIGHT BE ABLE TO LEVERAGE, AND, UH, BUT WE JUST NEED A LITTLE BIT MORE TIME, UM, UH, TO, TO ACCOMPLISH THAT.
SO LET'S TALK ABOUT, UM, UH, A COUPLE OF OTHER, UM, UH, UH, FACETS TO, UH, THE BUDGET DEVELOPMENT.
SO THIS IS OUR TOTAL OPERATING BUDGET.
[01:00:01]
A NEW SLIDE THAT I THINK IS VERY EFFECTIVE.YOU'LL SEE HERE THAT THE TOTAL OPERATING BUDGET FOR 24 25 IS UP 1.88%, OR, UH, JUST OVER $7 MILLION TO, TO 406 MILLION OH 7 8 7 5 4.
UM, THAT, UH, TOTAL OPERATING BUDGET IS OBVIOUSLY, UH, MADE UP OF THE GENERAL FUND AND THE HOTEL MOTEL TAX, BUT IT'S ALSO MADE UP OUT OF A NUMBER OF PROPRIETARY FUNDS, THE WATER AND SEWER FUND, SOLID WASTE FUND, GOLF FUND, UH, UH, SEVERAL SPECIAL REVENUE FUNDS AND INTERNAL SERVICE FUNDS, UH, AS WELL AS THE DEBT SERVICE FUND.
WHAT WE'RE GONNA FOCUS ON INITIALLY HERE, WE'LL BE THE, UH, GENERAL GOVERNMENT AND PROPRIETARY FUNDS.
AND THEN, UM, I'LL PAUSE, UH, FOR ANY QUESTIONS AROUND THE INTERNAL SERVICES FUND OR THE SPECIAL REVENUE FUND.
NOW, WHAT YOU DON'T SEE ON HERE IS CAPITAL FUNDS, AND THAT'S BECAUSE, UH, WE'RE GONNA ADDRESS THAT IN THE CAPITAL AND DEBT PLANNING SEGMENT OF THE PRESENTATION.
SO, UM, JUST, BUT JUST WANTED TO KIND OF GIVE YOU A, A ROADMAP, IF YOU WILL, OF WHAT WE'RE TALKING ABOUT AND WHAT MAKES UP THE $406 MILLION.
SO THE GENERAL FUND, AS I MENTIONED, IS PROJECTED INCREASE, 1.1 MILLION TO $180.7 MILLION.
GENERAL FUND REVENUES ARE COMPRISED, UH, 83.5% OF THEM ARE DERIVED FROM PROPERTY TAXES, SALES TAX, AND FRANCHISE FEES.
PROPERTY TAXES ARE PROJECTED AT 77.8, WHICH IS A, UH, THAT $2.6 MILLION INCREASE OVER FY 24 THAT WE DISCUSSED.
UH, AGAIN, THAT ASSUMES A MAXIMUM RATE ALLOWED UNDER SB TWO.
UH, IT LOWERS THE CURRENT TAX RATE BY, UH, THE, UH, 0.01877, UM, THAT WE'VE DESCRIBED TO YOU PREVIOUSLY.
UM, AND ALSO, UH, DOES, UH, TAKE INTO CONSIDERATION THAT, UH, IT'S AN INCREASE OF 3 MILLION FROM THE FY 2324, UM, IN PRIOR TAXES.
AND, AND, UH, BOB HAS EXPLAINED THIS VERY WELL PREVIOUSLY.
UM, WE HAVE FORECASTING A PROJECTION OF A, A DECREASE OF $350,000.
THAT'S BASED LARGELY ON CURRENT TRENDS THAT WE'RE SEEING AND ASSUMPTIONS THAT WE'RE MAKING AROUND VALUES AND DISPUTE, UH, PARTICULARLY, UH, PROPERTY TAX LAWSUITS THAT ARE IN DISTRICT COURT.
UM, MANY OF THOSE ARE IN THE COMMERCIAL REALM, AND SO, UM, YOU KNOW, THEY MAY HAVE SOME SUCCESS IN THOSE, UH, IN THOSE, IN THOSE CONTESTED, UM, UH, SITUATIONS BECAUSE OF SOME OF THE FACTORS THAT WE'VE DESCRIBED, UM, IN THE, UH, IN THE OFFICE, REAL ESTATE MARKET.
AND THEN, UH, UH, UH, PENALTY INTEREST ARE UP 2 61, AND THAT'S JUST BASED ON A FIVE YEAR AVERAGE IN TERMS OF SALES AND OTHER BUSINESS TAXES.
WE'VE TALKED ABOUT THOSE, UH, AT LENGTH, SO I WON'T BELABOR THE POINT, BUT YOU SEE THE SALES TAX BUDGET AT, UH, 50, UH, $2.4 MILLION, UH, MIXED BEVERAGE, UH, INCREASE OF ABOUT 47,000, AND THEN JUST A SLIGHT DECREASE IN BINGO.
UH, THE FRANCHISE, UH, FRANCHISE FEE REVENUES ARE PROJECTED AT 19.9 MILLION.
THAT'S AN INCREASE OF 800 AND ESSENTIALLY $20,000.
UM, ELECTRIC FRANCHISE FEES ARE BASED ON NORMALIZED, UH, YEAR AS IS AS OUR GAS FEES.
UM, THE, UH, TELEPHONE, UH, FRANCHISE FEES ASSUME, UH, REDUCED FEES AS, UH, YOU KNOW, AS WE ALL KNOW, EITHER OURSELVES OR SOMEBODY HAS, UH, UH, GIVEN UP A RESIDENTIAL LINE AT THEIR HOME AND ARE USING THEIR CELL PHONES ONLY.
UM, CABLE FEES CONTINUE TO REFLECT THE, UH, FULL IMPACT OF 1150, UH, SB 1152, I THINK, UH, TWO SESSIONS AGO NOW.
UM, AND, UH, AND THE CURRENT TRENDS THAT CUSTOMERS ARE SWITCHING FROM CABLE, UH, SERVICE TO STREAMING, UH, AND THEN THE WATER AND SEWAGE AND SOLID WASTE FEES ARE BASED ON THAT 5% OF SALES AND SERVICE FEES, UM, FOR THE USE OF THE CITY'S RIGHT WAY, UH, RIGHT OF WAYS.
AND THAT'S CONSISTENT WITH THE BEST PRACTICES THAT WE DISCUSSED IN PRIOR YEARS IN TERMS OF AN APPROACH TO, UH, OUR, OUR WATER AND, UH, SOLID WASTE FRANCHISE FEES.
UH, OTHER REVENUES, UH, PROJECTED AT 29.9 MILLION.
THAT'S AN INCREASE OF 2.9 MILLION.
AGAIN, UH, LICENSE AND PERMITS, UH, BASED ON CURRENT TRENDS INCLUDE A, A $66,000 INCREASE, UM, BECAUSE OF THE BUILDING AND DEVELOPMENT FEES THAT WE'LL DISCUSS SHORTLY.
UH, FINES AND FORFEITURES, UM, ARE BASED ON CURRENT TRENDS.
UH, OTHER REVENUES, UH, FY 20, UH, UH, THIS BUDGET FORECAST INCLUDES INCREASE AMBULANCE REVENUE RESULTING FROM, UM, HIGHER INSURANCE RATES, AS WELL AS THE INCREASE IN THE AMBULANCE TRANSPORT, UH, TRANSPORT FEE THAT WE'LL DESCRIBE SHORTLY.
UH, WE TALKED DURING WORK SESSION ABOUT BUD, ABOUT INTEREST IN OUR ASSUMPTION, UM, THAT, UH, LAST YEAR, UH, THERE WOULD BE MULTIPLE RATE CUTS BY THE FED THAT DID NOT OCCUR.
UH, WE ARE, AGAIN, TAKING OUR VERY CONSERVATIVE APPROACH IN FORECASTING, UM, SOME CUTS BY THE FED, BUT, UH, WE HAVE HIGHER FUND BALANCES, AND THAT'S RESULTING IN SOME OF THE HIGHER, UM, PROJECTIONS.
YOU SEE, UM, RECREATION LEISURE MOSTLY, UH, SURROUNDED, UH, THE INCREASES SURROUNDED, UH, SURROUNDING, UM, INCREASED FEES THAT ARE, ARE PROPOSED WITH THE BUDGET.
AND THEN AGAIN, A G AND A CHARGES ARE BASED ON OUR MOST RECENT UPDATE TO OUR COST ALLOCATION PLAN.
THAT'LL BE BEEN WORKING TOWARDS, UH, HERE ARE THOSE FEE, UH, UH, CHANGES THAT ARE INCLUDED IN THE BUDGET, THE AMBULANCE FEE, UH, UP $200, UH, A VARIETY OF BUILDING INSPECTION FEES AND PLANNING FEES.
UM, THE TREE MITIGATION AND TREE REMOVAL PERMIT FEES, THOSE WERE A PART OF THE, UH, TREE ORDINANCE THAT YOU ADOPTED A FEW MONTHS BACK.
UM, AND AGAIN, UH, THESE FEES ARE, UH, THEY COME OUT OF RECOMMENDATIONS FROM THE DEPARTMENT THAT, UM, THEY ARE EITHER, UH, LOOKING AT, UM, TRENDS IN THEIR, UH, PARTICULAR, UH, AREAS OF SPECIALTIES, UH,
[01:05:01]
AND THEN THEY BLEND THOSE WITH, UH, MARKET, UH, SURVEYS THAT WE DO, AND THAT'S HOW WE COME UP WITH THESE PARKS AND REC HAS A, A NUMBER OF, UH, UH, UH, CHANGES HERE.A LOT OF THESE ARE COST RECOVERY OR MARKET BASED, AS YOU CAN SEE, UH, AND ALL THOSE, UH, FEES THAT WE'VE DISCUSSED IN THE PARK.
STEEP DIVE EQUAL ABOUT $108,000 EXPENDITURES PROJECTED TO INCREASE 2.2 MILLION TO 180, UH, $0.3 MILLION.
UM, WHERE THE MONEY GOES HERE IS 75% OF IT IS 40, UM, UH, 40% OR $72 MILLION TO PUBLIC SAFETY.
UM, UH, INFRASTRUCTURE MOBILITY, 11.7% OR 21.1 MILLION.
GENERAL GOVERNMENT IS 13.8 OR 24.8 MILLION.
AND THEN RECREATIONAL LEISURE IS 9.6, UH PERCENT, OR $17.3 MILLION.
UH, KEY NOTES ON PROPERTY TAX, UM, INVESTMENTS HERE, AGAIN, THE PROPERTY TAX REDUCTION, UH, DOWN, UM, UH, TO 54 POINT 54, 2 1 8, THE INCREASE IN THE TAX EXEMPTION BY $15,000, THE SENIOR CITIZEN AND DISABLED INDIVIDUAL'S TAX EXEMPTION.
UH, THE INCREASE IN THE PROPERTY TAX DEDICATION TO THE 3.9, 3.95% INCREASE, UH, TO ALLEY STREETS, PARK MAINTENANCE, UH, FAC, UH, FACILITIES, UM, ECONOMIC DEVELOPMENT EQUIPMENT REPLACEMENT FUND, UH, AND THEN, UH, THIS YEAR, UM, UM, A LITTLE BIT OF AN ANOMALY, BUT AN INCREASE IN A HOME IMPROVEMENT CENTER PROGRAM, UM, REBATES BY ALMOST, UH, 600 AND, UH, JUST OVER $650,000 TO 1.9 MILLION.
SOME KEY PROGRAM INVESTMENTS THAT ARE ALWAYS IMPORTANT TO NOTE, CONTINUED SUPPORT FOR NETWORK AND COUNSELING PLACE AT $500,000 EACH.
CONTINUE TO SUPPORT THE CHAMBER OF COMMERCE FOR $200,000.
UH, WE MENTIONED THE RICHARDSON REPLANTS, THE HOUSING NEEDS ASSESSMENT, THE A DA TRANSITION, AND THEN IMPORTANTLY, UH, KEY NEIGHBORHOOD, UM, AND CITIZEN PROGRAMS CARE, CITIZENS POLICE ACADEMY, CITIZENS FIRE ACADEMY, NEIGHBORHOOD LEADERSHIP WORKSHOP, UM, UH, NEIGHBORHOOD PRESIDENTS MEETINGS, ALL OF THOSE, UM, UH, CARES PROGRAM.
I'M JUST THINK, UH, ALL OF THOSE, UH, INCLUDED, UH, IN THIS BUDGET.
UH, CAPITAL REPLACEMENT, AGAIN, A, A REALLY IMPORTANT NOTE HERE.
UM, THIS, UH, THIS WAS AT ONCE A, UH, A DEBT, UH, CONSIDERATION, UH, TRANSITIONING TO A PAY, UH, AS YOU GO STRATEGY, UM, A NUMBER OF YEARS AGO BY ESTABLISHING THE EQUIPMENT REPLACEMENT FUND, AN IT REPLACEMENT FUND, UM, 3.84 MILLION ON THE, UH, CAPITAL SIDE, UH, FOR, UH, EQUIPMENT REPLACEMENT.
AND, UH, ALL OF THOSE, UH, UH, THOSE, UH, THOSE TOTALS WERE, UM, DETAILED FOR YOU DURING THE, UH, RESPECTIVE DEEP DIVES.
SO, JUST QUICKLY, I WON'T HIGHLIGHT ALL OF THESE, BUT I'LL HIGHLIGHT SOME OF THE THINGS THAT WE HAVEN'T TALKED ABOUT IN TERMS OF COMMUNITY AND NEIGHBORHOOD SERVICES, AGAIN, THAT HOME IMPROVEMENT INCENTIVE PROGRAM.
UM, WE, WE DO ANTICIPATE, UH, THIS, THIS NUMBER HAS FLUCTUATED OVER THE YEARS, UP AND DOWN.
UM, WE'VE SEEN A STEADY INCREASE, AND THAT SHOULDN'T BE A SURPRISE WITH THE INCREASE AND, UH, AND, AND THE VALUES, UH, AS WELL AS, UH, THE INCREASE OF THE COST OF CONSTRUCTION PROJECTS.
BUT WE DO THINK THAT THIS'LL, UH, LEVEL OUT BACK A LITTLE BIT.
THIS IS THE HIGHEST YEAR, UM, I THINK THAT I CAN REMEMBER ON RECORD.
I MENTIONED THE, UH, OTHER ITEMS. UM, UM, IN TERMS OF GENERAL GOVERNMENT, UH, TOTAL BUDGET HERE OF 24.8 MILLION, THAT'S A DECREASE OF ABOUT $420,000.
UM, THAT WAS, UH, LARGELY DUE TO, UH, CITYWIDE EXPENSES.
UH, WE, WE, WE MAY MENTION THE TRANSITION TO TML FOR INSURANCE AND THE SAVINGS THAT, THAT, UH, ALLOWED US TO ACHIEVE, BUT ALSO THINGS LIKE RADIO, PHONE SYSTEMS AND, AND MAINTENANCE AND THINGS OF THAT STORE.
THIS IS WHERE YOU FIND THE SUPPORT FOR NETWORK AND THE COUNSELING PLACE.
UM, AND, UM, ALSO INCLUDE SOME NEW SOFTWARE FOR, UH, THE ARTS COMMISSION, UH, TO BE ABLE TO KIND OF PROCESS THE COMMUNITY ART GRANTS, UH, FACILITIES AND FLEET.
UM, UH, $4 MILLION HERE FOR FACILITY MAINTENANCE.
WE SHARED WITH YOU IN THE DEEP DIVE THAT FACILITY MAINTENANCE PLAN, $7.1 MILLION HERE FOR THE MAINTENANCE AND UPKEEP OF THE CITY'S VEHICLES AND EQUIPMENT.
SO THAT IS THE, UH, FULL BUDGET FOR OUR FLEET DEPARTMENT FOR BOTH INTERNAL AND EXTERNAL, UH, SERVICES.
IT, UH, TOTAL BUDGET OF 10 MILLION.
NOW, THAT'S A LITTLE BIT DOWN.
UM, IT REFLECTS, UH, YOU SEE THERE ARE A $600,000 REDUCTION IN THE GENERAL FUND, UM, SUPPORT FOR LEGACY SYSTEMS, AS WE DESCRIBED TO YOU.
UM, UH, WE HAD A, INITIALLY A SEVEN YEAR PLAN, I BELIEVE.
UM, THAT PLAN NOW IS OUT TO, UH, MORE LIKE NINE YEARS.
UM, WE, WE HAVE DONE SOME AMAZING WORK I'M SO PROUD OF, OF THE TEAM FOR THE SYSTEMS THAT WE HAVE, UM, TRANSITIONED TO.
UM, BUT, UM, WE, WE, UH, WE HAD TO, UH, I THINK RIGHT SIZE SOME OF THE, THE WORK.
UM, AND, UH, BY EXTENDING THAT OUT TWO YEARS, WE'VE BEEN ABLE TO KIND OF SMOOTH, IF YOU WILL, THE, UH, CONTRIBUTION THAT'S REQUIRED.
UM, SO IT'LL BE A NINE YEAR PLAN VERSUS SEVEN YEAR PLAN.
SO WE DON'T NEED AS MUCH EACH YEAR.
UM, AND THEN, UH, YOU SEE CLOUD-BASED SERVICES, WHICH CONTINUES TO GROW EVERY YEAR.
AND THEN JUST OUR, OUR NORMAL REPLACEMENT, UM, NORMAL REPLACEMENT OF, UH, HARDWARE.
UH, THE LIBRARY, UH, REMAINS RELATIVELY FLAT.
THAT'S LARGELY IN PART BECAUSE THEY'RE IN THEIR TEMPORARY SPACE.
UH, NOT A LOT OF OPPORTUNITY, UH, FOR GROWTH.
I'VE VERY EXCITED BY, UM, AND PROUD OF THE, UH,
[01:10:01]
LI THE, THE, UH, BALANCE THAT THE LIBRARY HAS STRUCK.UM, THERE AREN'T MANY SERVICES THAT WE AREN'T OFFERING TODAY THAT, THAT WE OFFER OFFERED IN THE LIBRARY.
UM, THE PRO THE, THE, THE, UH, UM, WHEN WE WERE OPERATING OUTTA THE MAIN LIBRARY.
UM, BUT WE ARE, WE, WE ARE MINDFUL OF, UH, SOME OF THE LIMITATIONS WE HAVE, AND I THINK JENNY AND HER TEAM HAVE DONE A GREAT JOB OF STRIKING UP THE RIGHT BALANCE THERE.
UH, AND THEN, UM, SLIGHT DECREASE IN, IN THE PLANNING DEVELOPMENT SERVICES, UM, AS, UM, JUST, UM, I THINK SOME TRANSITION IN STAFF AND, UH, NO, NO SIGNIFICANT OUTWARD FACING IMPACTS THERE.
AND THEN WE MENTIONED, UH, RECREATION LEISURE, TOTAL BUDGET OF 17.3 MILLION REMAINS RELATIVELY FLAT, BUT IT DOES INCLUDE A NUMBER OF NEW INITIATIVES.
UM, THINGS, UH, AROUND, UM, ADAPTIVE ADULT VENTURE DAYS, ADAPTIVE PROGRAM FOR CAMP, UM, COURAGEOUS, UM, IN MIMOSA PARK LIGHTING CONVERSION, WHICH WILL ALLOW THE PARK TO BE UTILIZED BY PARTNERS, UM, AFTER HOURS AND HAVE THOSE, UH, LIGHTS TURNED ON AND OFF BY THE PARTNERS.
UM, AND, UH, ALSO, UH, IMPORTANTLY, FULL FUNDING FOR ALL OF OUR TRADITIONAL COMMUNITY EVENTS THAT ARE SO IMPORTANT, UM, IN, IN THE COMMUNITY.
SO IF YOU, UH, KIND OF TRY TO FACTOR ALL THIS, UM, TOGETHER, AND YOU GO BACK TO THE, ONE OF THE ORIGINAL SLIDES THAT I SHOWED IN THIS SECTION WAS THAT WE HAD 1.1 MILLION NEW DOLLARS, UM, YOU MIGHT SAY, HOW DO YOU DO ALL OF THAT? AND, UH, WITH ONLY 1.1, UH, MILLION NEW DOLLARS.
AND SO, UM, TRADITIONALLY ON THIS SLIDE, WHAT YOU SEE IS, IS A NUMBER, AND THEN WE, UH, DETAIL HOW ALL OF THOSE DOLLARS WILL BE SPENT HERE.
WHAT I'M TRYING TO SHARE WITH YOU IS HOW, UM, WE'RE SPENDING SOME DOLLARS, BUT WE'RE ALSO SAVING IN OTHER AREAS TO BE ABLE TO ACHIEVE THE BUDGET THAT I JUST DESCRIBED TO YOU IN THE GENERAL FUND.
SO YOU CAN SEE THE TWO BIG, UH, COMPENSATION PIECES, 1.9 MILLION FOR PUBLIC SAFETY, 1.1 MILLION FOR NON-PUBLIC SAFETY.
UM, WE ALSO HAD UNAVOIDABLE INFLATIONARY, UH, PRESSURES THAT WE HAD IN KEY AREAS THAT WE KNOW YOU DID NOT WANNA REDUCE THE LEVEL OF SERVICE OR THE FREQUENCY OF MAINTENANCE.
UM, BUT WE, UH, ALSO IN THIS BUDGET ASSUMED, UH, SAVINGS FROM ATTRITION.
UH, YOU SAW THE NUMBER WE'RE CURRENTLY AT 7% VACANCIES.
UM, ACTUALLY LESS THAN HALF OF THAT, I THINK 3%.
AND SO A VERY CONSERVATIVE NUMBER, I DON'T KNOW, AN ORGANIZATION, UM, OF A THOUSAND PLUS EMPLOYEES THAT IS NOT GONNA HAVE SOME NATURAL ATTRITION.
AND SO WE FEEL VERY CONFIDENT THAT THIS NUMBER IS SOMETHING THAT WE ARE, WE'RE GONNA REALIZE AND WE'LL PROBABLY REALIZE MORE.
UM, SOME DEPARTMENT COST CONTAINMENT EXERCISES, UH, THAT WE WENT THROUGH RESULTED IN ABOUT $880,000 SAVINGS.
NOT A TON OF MONEY IN A FOUR, YOU KNOW, $400 MILLION BUDGET, BUT IT WAS IMPORTANT TO GO THROUGH THAT, UH, EXERCISE.
I MENTIONED THE $600,000 REDUCTION ANNUALLY, UM, BY SMOOTHING OUT WHAT WAS REQUIRED FOR, UM, THE, UH, LEGACY SYSTEM TRANSITIONS, AND THEN, UH, CORE PLAN, WHICH HAD A FUND BALANCE THAT WAS, UM, UM, ALMOST DOUBLE WHAT, UM, IT WOULD NEED TO BE, UH, TO MEET ALL OF THE INDUSTRY BEST PRACTICES.
UM, WE WERE ABLE TO SLIGHTLY REDUCE TEMPORARILY, BUT, UH, STILL SLIGHTLY REDUCE TEMPORARILY.
UM, THE GENERAL FUND CONTRIBUTION TO CORE PLAN PER EMPLOYEE, UH, TO REALIZE SOME SAVINGS.
AND AGAIN, UH, THAT, UM, WE BELIEVE THAT'S HIGHLY IN LINE WITH THE, THE TACTIC THAT YOU'VE PRO, THAT YOU'VE GIVEN US IS TO EVALUATE CORE PLAN ON AN ANNUAL BASIS, UM, AND MAKE SURE THAT IT'S, UH, PERFORMING IN A, UM, IN A, IN AN APPROPRIATE WAY.
UM, WATER AND SEWER FUND, UH, AGAIN, PROJECTED TO INCREASE 7.4 MILLION TO 113.5 MILLION PRIOR OVER PRIOR YEAR, UM, IN THAT, UH, A PROJECTED, UH, 10, $110 MILLION REVENUE.
THAT INCLUDES A 3% INCREASE TO BOTH WATER AND SEWER RATES, OR AN ADDITIONAL $2.8 MILLION, UH, OF THE $7 MILLION TOTAL INCREASE.
UM, AGAIN, UM, THESE WATER RATES, UM, ARE, UH, NOT WHAT THE WATER DISTRICT PASSES ALONG TO US.
IF YOU SEE, UM, AND, UH, I'M SORRY.
IF YOU SEE, UM, THE WHOLESALE COST OF WATER IS INCREASING BY 5.4%, THE INCREASE OF SEWER TREATMENT COSTS ARE INCREASING BY 4.5%.
WE'VE BEEN ABLE TO MITIGATE, UM, THE, UM, IMPACT OF THAT, NOT PASS THE, THE FULL COST ALONG, UH, BECAUSE THERE ARE A NUMBER OF OTHER COMPONENTS THAT GO INTO OUR LOCAL RATE.
UM, AND SO WE WERE ABLE TO MANAGE OUR, UH, COST OF OUR, UM, OUR EMPLOYEES, WE'RE ABLE TO MANAGE THE COST OF THE INFRASTRUCTURE PROJECTS THAT WE DO TO MAINTAIN OUR WATER DISTRIBUTION SYSTEM SYSTEM, OUR WATER, OUR WASTEWATER, UH, CONVEYANCE SYSTEM, UM, A VARIETY OF DIFFERENT KNOBS THAT WE CAN TURN INTERNALLY.
AND SO THAT'S, THAT'S HOW WE WERE ABLE TO, UH, ONLY PASS ALONG A 3% RETAIL RATE WHEN WE WERE SEEING A 5.4 AND A 4.5% WHOLESALE RATE TO WATER AND, AND WASTEWATER.
RESPECTFULLY, ON THE EXPENDITURE SIDE, YOU SEE THE, IT'S PROJECTED TO INCREASE FROM $7.6 MILLION, UH, TO ONE POINT, UH, ONE, ONE, UM, $112 MILLION, UH, YEAR OVER YEAR, INCLUDING THAT IS, UM, UH, AGAIN, AS ON THE REVENUE SIDE, YOU SEE THE 3%.
UM, IMPORTANTLY, UH, IN ADDITION TO JUST, UH, THE OPERATION AND MAINTENANCE OF OUR SYSTEMS, UH, WE HAVE TALKED TO YOU ABOUT
[01:15:01]
NEW EPA REQUIREMENTS ASSOCIATED WITH INSPECTING OUR SYSTEM FOR LEAD AND COPPER PIPING.UM, WE HAVE A DOLLAR SET ASIDE, UM, TO, UH, WE BELIEVE, UH, THAT'LL BE SUFFICIENT TO COVER THE FIRST YEAR OF THAT NEW PROGRAM, UM, WHICH WE ANTICIPATE WILL OCCUR THIS BUDGET YEAR, AS WELL AS INFLATIONARY PRESSURES THAT WE'VE TALKED ABOUT AND CONTINUED FUNDING FOR THE WATER MASTER PLAN.
UH, THE WATER SYSTEM YOU SEE THERE, INCREASING BY, UH, $2.7 MILLION FROM THE PRIOR YEAR.
UH, AGAIN, THAT INCLUDES THE WHOLESALE WATER, UH, WATER INCREASES, AS WELL AS, UH, THAT'S WHERE YOU'LL FIND THE DOLLARS FOR THE EPA PROGRAM THAT I JUST MENTIONED, AS WELL AS, UH, JUST OUR REGULAR MAINTENANCE, UM, INCLUDING, UM, DOLLARS FOR ALLEY SIDEWALK AND STREET REPAIRS THAT MIGHT NEED TO BE MADE, UH, UH, AS A RESULT OF WORK THAT WE HAVE TO DO TO WATER SEWER LINES.
AND THE SEWER SYSTEM BEGAN A $29 MILLION INCREASE, UM, A 29 20 $9 MILLION BUDGET INCREASE OF $1.2 MILLION, UM, OVER YEAR, OVER YEAR, UH, CONTINUED, UH, INDUSTRIAL PRETREATMENT MONITORING PROGRAM WITH NORTEX MISSILE WATER DISTRICT, UH, AND THEN SOME MAINTENANCE DOLLARS THERE.
THE SYSTEM MAINTENANCE IS, UH, ESSENTIALLY THE, PREDOMINANTLY THE CMOM PROGRAM, THE CAPACITY MANAGEMENT OPERATION MAINTENANCE PROGRAM THAT WE ADOPTED A NUMBER OF YEARS BACK.
UM, WE HAVE A WHOLE, UM, MAINTENANCE PROGRAM JUST AROUND THAT, HIGHLY COORDINATED WITH THE NORTEX MUNICIPAL, OUR DISTRICT, BUT ALSO INCLUDES, YOU CAN SEE THERE ARE METER SHOP, UH, IN CONSTRUCTION, UM, UM, AND REPLACEMENT OF A, A, AN EXCAVATION TRUCK AND A SERVICE TRUCK IN THE CAPITAL, UM, PORTION OF THAT.
UH, AND THEN SOME OTHER ADMINISTRATIVE, UH, FEES THAT ARE ASSOCIATED WITH, UH, UH, READING WATER METERS AS WELL AS THE BILL UTILITY BILLING AND COLLECTION SERVICES.
UM, IN TERMS OF THE SOLID WASTE FUND, AGAIN, A PROJECTED INCREASE OF NEARLY A MILLION DOLLARS TO 19.4, THAT INCLUDES A $2 PER MONTH INCREASE TO RESIDENTIAL RATES, UM, WHILE MAINTAINING THE 26% SENIOR DISCOUNT.
UM, THAT ACCOUNTS FOR ALMOST, UH, $625,000.
OF THE 696,000 NEW DOLLARS IN TERMS OF EXPENDITURES WE'RE INCREASING, UH, UH, ALMOST, UM, UH, A MILLION DOLLARS TO $19.2 MILLION IN THAT, UH, INCLUDES, UM, UH, AN INCREASE OF $18,000, UM, UP TO $4 MILLION FOR COMMERCIAL SOLID WASTE.
UH, INCLUDES, UM, TWO AND A HALF MILLION DOLLARS FOR THE LANDFILL FEES OR THE TIPPING FEES.
AND THEN SOME, A VARIETY OF COMMERCIAL CONTAINERS, A HALF TON TRUCK AND A FRONTLOAD ARE ALL BE PURCHASED RESIDENTIAL SOLID WASTE.
THAT'S WHERE, AGAIN, YOU SEE THE $2 INCREASE, UM, FOR, UM, UM, FOR RESIDENTIAL SERVICES.
UM, AGAIN, A A COUPLE OF REAL THREE WHEELERS.
ANOTHER, UH, KNUCKLE BOOM FOR OUR BOCK SERVICES ARE THE MAIN ITEMS THERE.
THE OTHER ITEMS OF ACROSS, OF COURSE, ACROSS ALL THESE, UH, BUT RESIDENTIAL AND, UH, AND, AND, UH, RECYCLING IN PARTICULAR ARE THE COST OF OUR TEMPORARY STAFF THAT WE HIRE TO HELP US, UH, MAN.
UM, THE, THE SERVICES DAILY, UM, UH, A LITTLE BIT OF A REDUCTION IN THE ADMINISTRATION OF $82,000, UH, MOSTLY DUE TO SOME INSURANCE SAVINGS, AND THEN SOME, UH, JUST SOME OTHER HIGHLIGHTS, BUT AT $1.6 MILLION IN TOTAL DEBT SERVICE, UM, AN INCREASE OF ABOUT $70,000, AND THAT'S DUE LARGELY TO THE REINVESTMENT WE'VE BEEN MAKING THE LAST COUPLE YEARS IN OUR FLEET.
THE GOLF FUND IS PROJECTED TO INCREASE, UM, ABOUT, UH, $728,000 TO $3.3 MILLION.
UM, WE'VE TALKED TO YOU ABOUT, UH, A, A, A NUMBER OF FEES AND, UH, VERY, UH, APPRECIATIVE OF YOUR, UH, SUPPORT OF THESE.
I, I WOULD SAY LIKEWISE, WE'RE VERY APPRECIATIVE OF THE COMMUNITY'S SUPPORT OF THEM.
UH, WE'RE NOT RECEIVING, UH, ANY NEGATIVE FEEDBACK.
RONNIE HAS DISCUSSED THESE FEES WITH, UH, GOLFERS AS THEY'VE COME IN, INCLUDING SENIORS, GOLFERS.
UH, WE'VE DISCUSSED, UM, THE, UH, ELIMINATION OF THE PUNCH CARD AND TRANSITION TO THE RESIDENT AND SENIOR AND JUNIOR DISCOUNT.
AND, UH, THEY'VE BEEN REALLY WELL RECEIVED.
UH, ON THE EXPENDITURE SIDE, UH, EXPENDITURES ARE EXPECTED TO INCREASE 460,000 TO 3.3 MILLION.
UM, UH, MAIN, UH, HIGHLIGHTS THERE, UH, IS AN INCREASE OF $460,000, UH, OVER LAST YEAR'S BUDGET.
UM, IT STILL FACTORS IN COURSE TWO OPENING UP, UM, AND, UM, UM, AFTER, AFTER THE RENOVATION, PROBABLY MORE LIKE NOVEMBER NOW VERSUS, UH, VERSUS OCTOBER, UH, WE TALKED ABOUT THE INCREASE FOR, UH, UH, CART RENTAL CONTRACT THAT WE HAD AND LANDSCAPING SUPPLIES, KEY DRIVERS THERE.
UM, AND THEN OF COURSE, SO AS WELL HERE, UM, THERE'LL BE A, UH, 3%, UH, INCREASE, UH, MERIT-BASED INCREASE FOR, UH, EMPLOYEES AS WELL.
HOTEL MOTEL FUND INCREASE OF, UH, $919,000 TO 9.8 MILLION.
UH, WE TALKED ABOUT A NUMBER OF FEES, UM, UH, THAT WE HAVE, UM, RECOMMENDED IN YEAR TWO OF, OF A, OF A COMPREHENSIVE FEE SURVEY, UH, AND OUR FEE UPDATING PLAN.
WE ALSO, UH, TALKED ABOUT A PILOT PROGRAM THAT WE WOULD, UH, UNDERTAKE TO REALLY BETTER UNDERSTAND HOW WE MIGHT BE ABLE TO HELP SOME OF OUR NON-PROFITS.
AND SO WE'RE ALL ABOUT THAT, AND WE'LL BE, UH, HANDLING THAT.
UM, AS PART OF OUR, OUR BUDGET, UH, AFTER WORK, UM, THE, UH, EXPENDITURES ARE, ARE PROJECTED TO INCREASE 433,000 TO $9.8 MILLION.
[01:20:01]
UM, SOME FUN HIGHLIGHTS.THERE ARE, UM, UH, A FULL RETURN TO, UM, THE EISMAN CENTER PRESENT SEASON.
UM, ALMOST, UH, I THINK 60 PLUS DIFFERENT PERFORMANCES AS PART OF EISMAN CENTER PRESENTS THIS YEAR.
UH, ART, ANNUAL ART GRANT FUNDING IS PROGRAMMED AT A BASE NOW FOR $375,000.
SO THAT'S AN INCREASE OVER, UH, LAST YEAR'S BASE OF $350,000.
UH, DOESN'T ACCOUNT FOR THE, UH, SPECIAL, UM, ARTS GRANT, UH, PROGRAM THAT WE DO EVERY OTHER YEAR, BUT WE'LL REVISIT THAT NEXT YEAR.
UH, IT ALSO, UM, HAS SOME YEAR END RESERVES THAT'LL BE TRANSFERRED TO EISMAN FACILITY MAINTENANCE FUND TO CONTINUE THE IMPORTANT REINVESTMENT IN THE MAINTENANCE OF THAT BUILDING.
AND THAT I MENTIONED TO YOU, THE $1 MILLION TRANSFER TO THE GENERAL FUND, UH, ON THE DRAINAGE FEE SIDE, UH, THE DRAINAGE FEE INC.
UH, BUDGET INCLUDES A $1 PER MONTH INCREASE TO THE RESIDENTIAL, UH, CUSTOMER, AND THE COMMERCIAL DRAINAGE FEE WILL INCREASE, UM, UH, 0.119 PER 100 SQUARE FEET, UH, OF IMPERVIOUS SURFACE.
UM, UM, AND, UH, IT'LL INCREASE TO, UH, 0.147, UH, PER 100 SQUARE FEET OF IMPERVIOUS SURFACE.
AND SO THAT EQUATES TO ABOUT A 23% INCREASE, UH, FOR BOTH RESIDENTIAL AND COMMERCIAL.
THIS IS ONLY THE SECOND TIME IN THE HISTORY OF THE FUND.
THE, UH, DRIVING FACTOR BEHIND THIS, UM, IS THAT WE, UH, ARE EXPERIENCING, UM, WITH THE, UH, EXTREME WEATHER EVENTS THAT WE'VE HAD, INCLUDING THE MAY 28TH STORM, WE'VE BEEN EXPERIENCING MORE AND MORE FLOODING ISSUES THROUGHOUT THE COMMUNITY.
UM, A BIG PART OF THIS ADDITIONAL REVENUE THAT'S RAISED WILL BE USED, UH, FOR CULVERT MAINTENANCE AND TO MAKE SURE THAT, UM, WE HAVE A GREAT SET OF CREEKS TO MOVE WATER.
UH, BUT THEY HAVE TO BE UNOBSTRUCTED TO DO THAT.
AND SO YOU'RE GONNA SEE SIGNIFICANTLY MORE, UH, INVESTMENT IN, UH, PREVENTATIVE MAINTENANCE AS WELL AS CAPITAL PROJECTS IN THIS FUND, UH, AS A RESULT OF THE ADDITIONAL REVENUES.
UH, THE OTHER OPERATING FUNDS, AS I MENTIONED, UM, IF YOU COULD THINK BACK TO THAT FIRST, UH, CHART, UM, THE OTHER KEY COMPONENTS BEYOND THE FIVE FUNDS THAT WE'VE DESCRIBED BEFORE ARE THE INTERNAL SERVICE FUNDS, UH, THE SPECIAL REVENUE FUNDS, AND THEN THE DEBT SERVICE FUNDS.
AND SO WE WANTED TO, UH, PROVIDE, UH, COUNSEL AN OPPORTUNITY HERE, UH, TO ASK ANY QUESTIONS ON, UH, ON ANY OF THESE FUNDS.
AND AGAIN, IF YOU, IF YOU DON'T SEE A CAPITAL FUND THAT YOU HAD A QUESTION ON, WE'VE KIND OF PUT THAT INTO THE, UH, CAPITAL AND DEBT PLANNING SEGMENT, SO WE CAN KIND OF ADDRESS THAT THEN, IF THAT'S OKAY.
BUT BE HAPPY TO, UH, STOP TALKING FOR A SECOND AND TAKE ANY QUESTIONS.
THANK YOU, MR. MAGNER, MS. JUSTICE.
WE'LL, DON'T KNOW WHO WAS FIRST, BUT I THINK, I THINK JOE WAS, BUT I'LL, THAT'S FINE.
DO YOU WANT QUESTIONS ON THE, THE GENERAL FUND OR JUST THE, THESE FUNDS? I THINK SINCE, UH, WE WE'RE PAING LET'S, UH, ANYTHING THAT'S BEEN PRESENTED, UH, THUS FAR, AND THEN ANY OF THESE FUNDS WOULD BE GREAT.
I ASK THE QUESTION DURING THE RETREAT ABOUT THE GOLF FUND AND WHETHER WE NEED TO REEVALUATE THE, UM, UH, FUND BALANCE.
AND ANOTHER ONE THAT CAME UP IN MY REVIEW OF THE BUDGET THAT YOU FILED WAS THE SOLID WASTE SERVICES FUND FOR 60 BUILDING TO 90.
AND SO I THINK RELATED MORE COMMENT THAN A QUESTION.
I THINK WE SHOULD EVALUATE THAT WHEN YOU LOOK AT IT AGAIN LATER THIS YEAR, ABOUT WHETHER OR NOT WE CAN STABILIZE THAT AT 90 IF WE FEEL COMFORTABLE WITH THAT.
YEAH, I WILL COMMIT, DEFINITELY COMMIT TO DOING THAT.
UH, AS, UH, KENT, UH, EVERY YEAR BRINGS IN ANITA EVERY YEAR BRINGS US THE, UM, INVESTMENT POLICY, UH, TO UPDATE.
UM, WE CAN, UH, LOOK AT THE, UH, FINANCIAL POLICY AT THAT TIME TOO AND, AND MAKE A RECOMMENDATION.
AND THEN I HAVE NITPICKY QUESTIONS ABOUT THE BUDGET.
DO WE WANNA GET INTO THOSE OR LEAVE IT BROAD TOPIC? WHATEVER YOU PREFER.
IF YOU WANNA ASK 'EM, IT'S FINE.
UM, AND THE SOLID WASTE SERVICES FUND, ON PAGE 42 OF THE BUDGET, I HAD A QUESTION ABOUT, UM, SPECIAL PROJECTS TRANSFER OUT.
IT'S A PRETTY LARGE ESTIMATE TO BUDGET INCREASE, AND SO I WAS JUST CURIOUS, I'M SORRY, WHAT PAGE? UH, 42.
OH YEAH, THE TRANSFERS OUT SPECIAL PROJECTS.
UM, SO THE QUESTION WAS ON THE ON AND, UH, SOLID WASTE SERVICES FUND, THERE'S A, A TRANSFER OUT CALLED SPECIAL PROJECTS FOR 2 5250 3,500.
UM, THOSE ARE DOLLARS THAT WE'VE SET ASIDE.
THEY'RE UN ALLOCATED AT THIS TIME.
THEY'VE BEEN SET ASIDE FOR, UM, ANTICIPATED ACTION ITEMS THAT WILL BE GENERATED BY THE SOLID WASTE SERVICES, UH, MASTER PLAN THAT WE'RE UNDERGOING.
SO, UM, YOU KNOW, IT'S PRETTY COMMON TO GO THROUGH A PLAN LIKE THAT.
I MEAN, IT COULD BE EVERYTHING FROM, UH, YOU KNOW, UH, INCREASED AWARENESS AROUND RECYCLING OR INCREASE, UM, EDUCATION AROUND, UM, UM, YOU KNOW, HOW BEST TO USE BAIK EFFICIENTLY TO, YOU KNOW, NEW PROGRAMS OR SERVICES.
AND, BUT WE WANTED TO JUST MAKE SURE THAT WE HAD SOME FUNDING SET ASIDE SO THAT AT THE END OF THAT MASTER PLAN, IF YOU, UM, WOULD LIKE TO, TO MOVE ON SOMETHING AND ASK US TO IMPLEMENT SOMETHING WITHIN THIS BUDGET YEAR, WE HAVE SOME DOLLARS SET ASIDE TO DO THAT.
UM, AND THE LAST, ON THIS SOLIDS, UH, WASTE SERVICES FUND, UM, THERE'S A LARGE LINE ITEM, PAGE 44 FOR, UM, NON-DEPARTMENTAL.
[01:25:01]
I, UH, ASSUME THAT'S RELATED TO OPERATIONS OR SOMETHING, UH, NOT OPERATIONS.I, WHAT IS THAT? UM, YEP, YOU WANNA TAKE IT? YOU'RE, YOU'RE ASKING WHAT THE INCREASE IS THERE? NO, JUST IN GENERAL.
I MEAN, THE OTHER ONES ARE PRETTY SPECIFIC, SOLID WASTE RESIDENTIAL, AND THEN THERE'S JUST NON-DEPARTMENTAL, SO I WAS CURIOUS IF THAT IS, YEAH, THAT DEPARTMENT COVERS, OR THAT COST CENTER COVERS, UM, FUND WIDE, UM, EXPENSES LIKE INSURANCE PREMIUMS, YOU'LL FIND YOUR GNA CHARGE, YOUR FRANCHISE CHARGE OR FRANCHISE FEES, UH, FUNDED OUT OF THERE, UH, RADIO SYSTEM MAINTENANCE, COMPENSATED ABSENCES, STUFF LIKE THAT THAT, THAT WE DON'T, UM, APPLY TO A SPECIFIC DEPARTMENT.
LIKE I SAID, I WAS JUST SORT OF WORDED VAGUELY.
UM, JOE, DO YOU WANNA GO? I HAVE LOTS MORE QUESTIONS.
UM,
BUT ALL THREE TIFFS ARE, ARE NETTED OUT.
NO, THAT'S, UM, REALLY HELPFUL.
I JUST, WE, WE ADD IN THE VALUES AND DISPUTE, SUBTRACT OUT THE, THE, UH, TIFF.
SO I THINK IT'S BENEFICIAL BOTH FOR THE COUNCIL AND FOR THE PUBLIC TO TALK ABOUT SOME OF THEM.
SO THE CENTRAL SERVICES FUND, CAN YOU JUST DESCRIBE FOR US, UH, AND YOU KNOW, YOU AND I TALKED ABOUT THIS WEEKEND, I THINK IT WOULD BE HELPFUL TO, IN THE FUTURE, HAVE A DESCRIPTION OF WHAT THESE FUNDS ARE ON THE FUND SUMMARIES, JUST SO WE'RE AWARE OF, OF WHAT THESE EXPENSES YEAH, THAT'S, THAT'S A GREAT, THAT'S A GREAT RECOMMENDATION AND WE WILL, UH, WE'LL COMMIT TO DO THAT MOVING FORWARD.
I THINK WE CAN, AT THE BOTTOM OF EACH OF THESE, UM, KIND OF, UH, YOU KNOW, PUT A FOOTNOTE OR SOME KIND OF A, SOME KIND OF AN EXPLANATION GENERICALLY, UM, KIND OF WHAT THE FUND IS FOR.
ANYBODY YOU WANNA TAKE THE CENTRAL YEAH.
THE CENTRAL SERVICES FUND ARE SOME INTERNAL, UH, SERVICES THAT ARE SHARED BETWEEN ALL OF OUR OPERATING FUNDS, INCLUDING MAIL, SERVICE, RECORDS, UH, SERVICE, UH, OUR WAREHOUSE, AS WELL AS, UH, WE, WE HAVE, UH, UH, A COST CENTER THAT PAYS FOR ALL THE CITY'S PRINTERS, AND THEN WE ALLOCATE THOSE EXPENSES BACK OUT TO THE OPERATING FUNDS, BUT THEY'RE RECORDED IN THE INTERNAL SERVICE FUNDS.
AND THEN THEIR CUSTOMERS ARE THE OP, OTHER OPERATING FUNDS, THE GENERAL FUND BAR, SEWER, SALT, WASTE, GOLF, HOTEL, MOTEL.
I MEAN, STUFF THAT RECURS FOR EVERY SINGLE DEPARTMENT ACROSS ALL FUNDS.
UM, ON THE DRAINAGE FUND, I KNOW THAT THAT'S ONE THAT WE'RE TRYING TO REALLY GET ESTABLISHED AND, UM, IT'S AN IMPORTANT ONE.
AND SO I'M JUST SORT OF CURIOUS, SORRY, PAGE 60, UM, SORT OF CURIOUS IF WE'RE IN A POSITION TO START TALKING ABOUT WHETHER OR NOT WE CAN DO A FUND BALANCE FOR THIS FUND, OR IF IT'S TOO EARLY OR, OR SORT OF WHERE, HOW DO, HOW DO WE FEEL ABOUT THAT? IT'S, IT'S AN IMPORTANT ONE THAT WE'VE BEEN TRYING TO ADD DOLLARS TO AND REALLY GET, YOU KNOW, BUILT UP.
BUT YEAH, I'M GONNA LET KENT KIND OF WEIGH IN, BUT, YOU KNOW, I THINK, UM, FROM A, UH, IMPLEMENTATION STANDPOINT RIGHT NOW, THE, THE BIG CHALLENGE IN, IN BUILDING UP THE FUND BALANCE WOULD BE THAT WE WOULD HAVE TO, YOU KNOW, WE'D, EACH YEAR WE'D HAVE TO DO SOME AMOUNT LESS TO START WORKING OUR WAY TO THAT, BUT CAN, IF YOU WANNA TALK ABOUT JUST THE, UM, THE, UM, SPECIAL REVENUE FUNDS AND KIND OF THE APPROACH THAT FUND BALANCES AND THOSE VERSUS FUND BALANCES, WE COULD CERTAINLY LOOK AT A FUND BALANCE POLICY, BUT TYPICALLY IN A FUND LIKE THAT, IT'S, IT'S REVENUE IS RESTRICTED FOR SPECIFIC USES FROM THE STATE STATUTE.
SO IT OPERATES A LITTLE BIT MORE LIKE A CAPITAL PROJECTS FUND WHERE WE'RE BRINGING MONEY IN THERE AND WE ALLOCATE THAT FOR PROJECTS, SPECIFIC PROJECTS.
SO THERE ARE SOME OPERATIONAL COSTS IN THERE I THINK THAT WE'VE USED, BUT THEY'RE RELATIVELY MINIMAL AND IT'S NOT AS OPERATIONALLY FOCUSED.
SO LIKE THE GENERAL FUND, FOR INSTANCE, WHERE YOU WANT TO KEEP THAT RESERVE IN THERE, IT'S REALLY MORE PROJECT.
IT'S JUST ONE OF THOSE ONE SORT OF LIKE SOLID WASTE AND WATER THAT WE TALK ABOUT A LOT THAT'S JUST LIKE SO IMPORTANT FROM AN INFRASTRUCTURE STANDPOINT.
AND SO, I MEAN, IT'S A GOOD DISTINCTION YOU'VE MADE.
IT JUST SORT OF SEEMS LIKE ONE THAT WE ARE ALWAYS SORT OF STRIVING TO DO BETTER IN.
UM, AND SO I DIDN'T KNOW IF A FUN BALANCE MIGHT MIGHT HELP, BUT THAT YOUR EXPLANATION MAKES SENSE.
YOU WANNA GO? UH, YEAH, I JUST HAVE ONE QUESTION.
UH, YOU JUST PASSED THAT LITTLE BIT ON THAT, UH, THE DRAINAGE FUND THAT, YOU KNOW, THIS IS SOMETHING I UNDERSTAND YOU JUST EXPLAINED THAT WHY IT IS LIKE THAT? UH, YOU KNOW, THE JUST $1 INCREASE THE FUND IS ABOUT $600,000.
NOT REALLY MUCH, IT JUST TO MAINTAIN THE CULVERS AND OTHER THINGS, BUT THE CAPITAL PROJECTS I THINK, I THINK STILL NEED TO BE THROUGH THE BOND PROGRAMS. MM-HMM.
I MEAN, I, I WOULD ENVISION MOVING FORWARD TO BE ABLE TO TACKLE SOME OF THE MORE CONSEQUENTIAL DRAINAGE PROJECTS.
[01:30:01]
SO LIKE WE, LIKE WE HAD BACK, UM, A FEW, A FEW YEARS AGO, WE'LL HAVE TO HAVE A DRAINAGE PROPOSITION.UH, I DON'T KNOW IF THERE'S ANY OTHER WAY TO MANAGE THE FUND FOR THAT, BUT, UH, WOULD BE GREAT IF THERE IS ANY OTHER SORT THAT WE COULD GET SOME FUNDING.
IS THERE ANY FEDERAL FUNDING AVAILABLE FOR THAT KIND OF PROJECTS? FOR DRAINAGE? FOR DRAINAGE, YEAH, DEFINITELY.
AND WE TRY TO LEVERAGE THAT AS, AS MUCH AS WE CAN.
UM, BUT UM, AND I, I, WE'VE EVEN TAKEN ON DRAINAGE PROJECTS WITH, UM, GENERAL FUND YEAR END SAVINGS.
WE DO, WE'RE DOING A, A LARGE PROJECT THAT YOU MIGHT REMEMBER A COUPLE YEARS AGO.
IT'S ALMOST A OVER A $5 MILLION PROJECT IN THE CANYON CREEK AREA, UM, WITH YEAR END SAVINGS.
AND SO, UM, YOU KNOW, I THINK THAT WHAT WE'RE TRYING TO ACHIEVE WITH THE DRAINAGE FUND IS, YOU KNOW, PRIOR TO THE LAST TWO INCREASES, WHICH AMOUNTED I THINK JUST TO A DOLLAR 50.
UM, YOU KNOW, WE, WE WEREN'T EVEN ABLE TO DO SOME OF THE MORE MEDIUM SIZED PROJECTS.
WE WERE LIMITED TO VERY SMALL IMPROVEMENT PROJECTS.
WE'RE TRYING TO WORK OUR WAY UP TO WHERE WE CAN AT LEAST DO SOME, SOME, UH, YOU KNOW, MID-SIZE PROJECTS THAT WOULD HAVE SOME IMPROVEMENTS OUT OF THIS FUND.
UH, BUT TO YOUR POINT, THE LARGER FUND, THE LARGER PROJECTS ARE GONNA HAVE TO CONTINUE TO BE FUTURE BOND PROGRAM PROJECTS.
OR, OR IF WE'RE ABLE TO GET, YOU KNOW, SOME FEDERAL FUNDING.
BUT I MEAN, THIS, THIS IS GOING TO BE A CHALLENGE MOVING FORWARD BECAUSE, UH, WE HAVE NOT SEEN, WE HAVE SEEN SOME FLOODING PROBLEM MM-HMM.
BUT, UH, IF THE TREND IS LIKE THAT, WE'RE GONNA SEE MORE RAIN, NOT PROBABLY EVERY YEAR, MAYBE EVERY OTHER YEARS WE'RE GONNA SEE BIGGER RAIN.
UH, AND THEN, I MEAN, SOMETIMES LIKE IF YOU HAVE WATER IN THE STREET, MAYBE, YOU KNOW, SEVEN, EIGHT INCHES, THAT'S UNDERSTANDABLE.
BUT IF THE RAIN WAS NOT REALLY BIG RAIN, SMALL RAIN.
THAT MEANS YOU HAVE TO REPLACE ALL THE STREET, THEN YOU HAVE TO PUT THE UNDERGROUND CULVER, I MEAN, UH, DRAINAGE PIPES, RIGHT.
OR FIND SOME OTHER GREEN WAY TO HOLD THE WATERS.
WE DON'T HAVE MUCH LAND AVAILABLE.
SO I DON'T WANT TO GIVE YOU ANOTHER HEADACHE, BUT THIS IS SOMETHING THAT IF YOU THINK, I DON'T THINK YOU CAN, YOU WOULD BE ABLE TO SLEEP ANOTHER SIX MONTHS.
THERE, THERE'S A, FOR INSTANCE, I MEAN, CHARLES AND I WERE JUST TALKING ABOUT THIS TODAY.
THERE'S A, THERE'S A DRAINAGE PROBLEM IN, IN THE HIGHLAND TERRACE AREA THAT WE ESTIMATE FROM PRELIMINARY ENGINEERING IS PROBABLY $19 MILLION.
WE'RE TRYING TO, UH, WE'RE TRYING TO OBTAIN A GRANT, UM, UH, 25 75 GRANT.
SO BECAUSE JUST THE DESIGN IS A MILLION DOLLARS AND WE'RE TRYING TO, WE'RE TRYING TO OBTAIN THE GRANT SO THAT WE CAN HAVE A MULTI-PHASE PROJECT THAT WOULD BE SHOVEL READY IF ADDITIONAL DOLLARS BECAME AVAILABLE.
AND SO THAT'S KIND OF THE APPROACH THAT WE'RE TAKING.
UM, AS, AS YOU WANNA KNOW, THE PROBLEM WITH DRAINAGE IS DRAINAGE.
I MEAN, THERE'S NO START AND STOP
IT'S A, IT'S A HUGE INTEGRATED, YOU KNOW, INTERTWINED SYSTEM.
UM, BUT I WILL TELL YOU, YOU KNOW, THE BOTH BACK IN, I THINK IT WAS 18 AND THEN AGAIN HERE IN ON THE MAY 28TH STORM, UM, SOME OF THE WORST FLOODING THAT WE'VE HAD IN THE CITY HAS ACTUALLY BEEN BECAUSE OF, UM, CULVERTS AND INLETS BEING BLOCKED.
AND SO I THINK THERE'S A HUGE, YOU KNOW, THERE'S A HUGE BENEFIT TO, YOU KNOW, THIS INCREASE AND TRYING TO, TO DO MORE PREEMPTIVE OR PREVENTATIVE WORK.
UM, AND, AND WHILE, WHILE WE SEEK THE LARGER DOLLARS TO DO SOME OF THOSE MORE CONSEQUENTIAL PROJECTS.
SOMETIMES JUST FOR EVERYBODY LISTENING THAT SOMETIMES WE SAY THAT WE SHOULD NOT PASS THE CREEK BECAUSE LET THAT NATURAL WAY DECAY ALL THESE THINGS, UH, TREES FALL AND EVERYTHING.
BUT, BUT THERE NEED TO BE A BALANCE.
YOU KNOW, YOU NEED TO CLEAN SOMETIMES THOSE THINGS TO MAKE SURE THAT IT HAS ENOUGH CAPACITY, IT DOES NOT FLOOD THE HOUSE OR, YOU KNOW, FLOOD ANY OTHER PUBLIC PROPERTIES.
SO, UH, DON'T GET SENSITIVE IF THAT GETS CLEAN BECAUSE IT IS FOR YOUR BENEFIT.
THANK YOU, CURTIS, GO AHEAD, PLEASE.
UH, MON UH, I NOTICED WE PUT A BUDGET FOR 120,000 FOR SCREENING WALLS AND PART OF THE NEIGHBORHOOD SERVICES IS, IS THAT GENERALLY JUST FOR MAINTAINING, LIKE POWER WASHING, UH, CLEANING? MM-HMM.
UH, WHAT ABOUT ANY REPLACEMENT OR, UH, OR REFURBISHMENT? MM-HMM,
[01:35:01]
WALLS.THE DOLLARS THAT ARE IN, UM, COMMUNITY SERVICES ARE FOR POWER WASHING AND OR PAINTING.
UM, SO, UM, PAINTING MOST MOSTLY POWER WASHING AND PAINTING THE EDDIE MAN WALLS OR THE PORT IN PLACE, CONCRETE WALLS AND MOSTLY POWER WASHING THE WALLS THAT WE CONSTRUCTED AS PART OF THE TWO VITALITY, UH, PROPOSITIONS IN OH SIX AND 10.
UM, THERE ARE DOLLARS IN, UH, I BELIEVE IT'S STREETS, UM, FOR, UH, REPAIRS TO SCREEN WALLS THAT ARE DAMAGED, UH, THROUGH ACCIDENTS.
BUT AT THIS TIME, WE DON'T HAVE FUNDING, UM, IN THE BUDGET FOR, UM, YOU KNOW, UPGRADING EXISTING, YOU KNOW, UM, SCREENING WALLS AT INTERSECTIONS OR UP UPGRADING, UM, YOU KNOW, COLUMNS OR, YOU KNOW, UM, END CAPS OR ANYTHING, ANY CAPS OR, OR ANYTHING LIKE THAT.
WE, WE DON'T HAVE THOSE DOLLARS IN, UM, IN THE, IN THE 10 BOND PROGRAM, WE DID DO SOME END CAP ENHANCEMENT PROJECTS.
IT WASN'T NECESSARILY JUST CONSTRUCTING OR REPLACING WALLS.
SO, UM, YOU KNOW, WE COULD POTENTIALLY IN THE FUTURE THROUGH A BOND PROGRAM LOOK AT A NEW, ANOTHER NEIGHBORHOOD VITALITY PROPOSITION WHERE WE COULD SET ASIDE, I THINK THE LAST, I THINK THE LAST BOND PROGRAM WE SET ASIDE $3 MILLION OR SO TO YEAH.
SO THAT, THAT WOULD BE MOST LIKELY HOW, UNLESS, UNLESS WE WANTED TO, YOU KNOW, UNLESS WE WANTED TO TRY, UM, TO FIND, UM, DOLLARS TO DO THAT FROM THE OPERATING, UM, BUDGET.
WELL, I, I MEAN WE AT 120,000, I MEAN A, A SMALL BUDGET COMPARED TO WHAT IT TAKES TO ACTUALLY MAINTAIN IT.
AND YOU KNOW, RICHARDSON HAS MAJORITY OF THE, THE SCREENING WALLS ARE THE EDDIE, EDDIE MEN.
SO, UM, I JUST WONDER 'CAUSE SOME OF THEM HAVE BEEN, UM, MODIFIED OR ENHANCED MM-HMM.
I'M JUST TRYING TO UNDERSTAND HOW WE CAN PUSH FUNDING TO INTEGRATE THAT, YOU KNOW, THAT DRIVE BY, UM, APPEAL.
UM, BECAUSE I DO KNOW THAT THOSE ARE, SOME OF THOSE ARE IN DECLINE.
I'M JUST WONDERING HOW WE CAN ALLOCATE THAT BESIDES UTILIZE GOING THE REVITALIZATION OR REVITALIZATION FORMAT OF GRANT FUNDING OR, UH, EVEN A COLLABORATION BETWEEN MATCHING FUNDS.
AND I KNOW THERE'S A LOT OF WAYS THAT WE CAN YEAH, I WAS GONNA SAY, I MEAN, TIE INTO THE HOAS, I THINK IF, IF, WHAT I'D LIKE TO SUGGEST IS THAT MAYBE KIND OF HEARING THAT AS A, AS AN INTEREST MAYBE, UM, MAYBE WE COULD GO, STAFF COULD GO OFF AND, AND TAKE THAT AS A GOOD HOMEWORK EXERCISE TO GO, YOU KNOW, PUT TOGETHER A COUPLE OPTIONS FOR YOUR CONSIDERATION OF HOW WE COULD MAYBE, UM, YOU KNOW, ALLOCATE DIFFERENT SOURCES OF FUNDING FOR THAT.
YOU KNOW, WHERE WOULD THE FUNDING COME FROM? HOW MUCH WOULD IT BE AND WHAT COULD WE EXPECT TO ACCOMPLISH WITH THAT? UM, YOU KNOW, THIS BUDGET, I THINK IT WOULD BE FROM AN OPERATING STANDPOINT, I THINK WE WOULD HAVE TO TALK, IF WE WANTED TO, TO CONSIDER THAT FOR THIS BUDGET, WE'D HAVE TO CONSIDER WHAT WE WOULD, WHAT WE WOULD GIVE UP TO ACHIEVE THAT.
'CAUSE THE, THE OPERATING BUDGET, THERE'S REALLY NOT A LOT OF, YOU KNOW, A LOT OF FLEXIBILITY RIGHT NOW.
UM, BUT WE, WHAT I, WHAT I WOULD SUGGEST IS THAT MAYBE WE, WE HAVE THAT AS A, A FUTURE CONSIDERATION BECAUSE IF WE WERE GONNA DO, YOU KNOW, SOME PLANNING AROUND, UM, YEAR END RESERVES, FOR INSTANCE, AND HOW WE MIGHT USE SOME THAT POTENTIALLY FOR SOMETHING LIKE THAT, WE COULD EVALUATE, UM, KENT, WHETHER, YOU KNOW, POTENTIALLY DEPENDING ON THE TYPE OF PROJECT WOULD A-C-O-B-O APPROPRIATE.
SO WE COULD GO OFF, WE CAN TAKE THAT AS HOMEWORK AND GO OFF AND COME BACK, LOOK AT A VARIETY OF DIFFERENT SOURCES, NOT JUST OPERATING, UH, BUDGET, BUT LOOK AT A VARIETY OF DIFFERENT SOURCES.
AND IF THE COUNCIL IS INTERESTED, WE CAN BRING THAT BACK AS KIND OF A WORK SESSION ITEM.
YEAH, NO, I'LL, I'LL SUPPORT THAT.
I'LL SAY THE THING I WAS MOST PROUD OF AS A NEIGHBORHOOD ASSOCIATION PRESIDENT IS GETTING ONE OF THE BRIDGES IN MY NEIGHBORHOOD UPDATED AS PART OF THAT 2010 BOND PROGRAM.
SO, UH, SO EVERY TIME I DRIVE ACROSS IT, I'M LIKE, I DID THAT
SO, UM, YEAH, I'M, I'M WITH CURTIS ON THAT.
JUST A FEW MORE QUESTIONS ON SOME OF THESE LESS TALKED ABOUT FUNDS.
I, I ASSUME SOME OF THESE ARE, AS KENT POINTED OUT EARLIER, STATUTORY REQUIREMENTS, LIKE THE MUNICIPAL COURT JURY FUND HAS, YOU KNOW, TOTAL REVENUE OF $2,500, YOU KNOW, SO SOME OF THESE ARE A LITTLE BIT MORE OBSCURE.
YOU KNOW, WHY, WHY, WHY, WHY DO WE NEED THESE? ARE THEY REQUIRED BY LAW OR IT'S A, IT IS PART OF A COURT COST THAT THE STATE SETS.
AND IN THAT PARTICULAR ONE YOU MENTIONED, I THINK IT'S THAT WE GET 10 CENTS PER CONVICTION.
IT GOES INTO THAT, UH, ESSENTIALLY THAT FUND TO HELP SUPPORT WITH JURY SUMMONS IS ABOUT ALL WE CAN AFFORD.
WHEN I WAS LOOKING AT IT, THAT'S WHY, WHY ARE, WE HAVE AN ENTIRE FUND AND WE PROBABLY SPEND MORE IN OPERATION COST KEEPING UP WITH THAT, AND WE ACTUALLY BRING IN
SO, BUT THOSE ARE, THEY'RE, THEY'RE SEGREGATED COURT COSTS, LEGALLY RESTRICTED, SO THEY GO INTO A SPECIAL REVENUE FUND AND THEY CAN ONLY BE USED FOR THOSE.
UH, EXPENSES ESSENTIALLY THAT ARE SPECIFIED IN STATE STATUTE.
IT'S SIMILAR QUESTION, IT'S NOT QUITE AS SMALL, BUT WHAT ABOUT SPECIAL POLICE
[01:40:01]
FUNDS? IS THAT ALSO SOME SORT OF FEES OR THAT'S COMING OUTTA THAT ONE? UM, A LOT OF THOSE ARE, UH, LEMME GET TO THAT.UH, IT PRIMARILY THREE SEPARATE CATEGORIES.
UH, FOR SPECIAL POLICE, AGAIN, THEY ARE SPECIAL OR, UM, SPECIFIC, THEY HAVE TO BE RECORDED SEPARATELY.
YEAH, THE LEOS FUND, WHICH I CALL, ALWAYS CALL LAOS THE CHILD SAFETY FUND, AND THEN SOME DIFFERENT STATE, STATE SEIZURES.
UM, THEY'RE REQUIRED TO BE TRACKED SEPARATELY, RECORDED SEPARATELY.
UM, I MEAN THERE, THERE'S SOME OF IT THAT CAN BE INTERMINGLED, BUT IF WE'RE GONNA DO IT FOR WHAT IS REQUIRED TO BE, UM, TRACKED SEPARATELY, THEN WE GO AHEAD AND PUT ALL OF THAT RESTRICTED, UH, PURPOSE REVENUE IN THERE.
SO BOB OR CAN OR ANITA, SOME, SOMEBODY TALK ABOUT WHY WE ROLL ALL THREE OF THOSE INTO ONE AND, BECAUSE I THINK THAT'S AN, THAT'S A, A IMPORTANT DISTINCTION ON THIS ONE.
YOU CAN, YOU CAN ROLL UP FUNDS, ESPECIALLY LIKE THE MUNICIPAL COURT FUNDS.
WE COULD PUT 'EM ALL AND JUST SHOW YOU ONE FUND, BUT WE STILL HAVE TO SEGREGATE AND WE HAVE TO KNOW WHAT WE'RE SPENDING THE FUNDS ON.
AND ON THE POLICE ACCOUNTS, USUALLY I THINK BY STATE STATUTE, THE, UH, POLICE CHIEF HAS A LOT OF CONTROL OVER THE EXPENDITURE OF THAT MONEY.
YEAH, I THINK, I THINK IT'S JUST HELPFUL.
WE DON'T TALK ABOUT THESE FUNDS A LOT.
AND SO, YOU KNOW, AGAIN, YOU WOULD LOOK AT IT AND SAY, THERE'S $2,500 IN HERE, WHY ARE WE WASTING OUR TIME AND RESOURCES ON TRACKING THAT? SO I, IT'S HELPFUL FOR ME AND HOPEFULLY FOR THE PUBLIC.
I THINK THE ANSWER'S PROBABLY THE SAME FOR THE 9 1 1 FUND.
I WAS CURIOUS ABOUT THAT ONE, JUST IS THAT A STATE MANDATE AS WELL? BECAUSE ALL THE OPERATIONS COME OUT OF THE GENERAL FUND, BUT WE HAVE THE SEPARATE FUND FOR YEAH, IT'S A, IT'S A STATE, UM, REQUIRED OR A STATE LEGISLATED FUND.
UH, THE REVENUE COMES FROM YOUR WIRELESS NINE ONE BILLS.
IT CAN BE USED ONLY FOR SPECIFIC THINGS.
PART OF WHAT IT CAN BE USED FOR IS, UH, SUPPORTIVE OF THE, THE CALL TAKERS AND THE, THE, UH, DISPATCHERS AND THAT KIND OF THING.
THOSE ARE H HOUSED IN THE GENERAL FUND.
SO WE RECORD THE REVENUE IN THE WIRELESS 9 1 1 FUND, THEN WE TRANSFER, I THINK IT'S 650,000 FROM THAT FUND INTO THE GENERAL FUND IN SUPPORT OF THE, THE CALL TAKERS.
I MEAN, THE POLICE DEPARTMENT PUTS TOGETHER A LIST.
THEY HAVE TO REPORT TO THE STATE WHAT WE'RE USING IT ON.
AND THEY ARE ABLE TO, UM, TO TACK THAT DOWN.
AND NOW THERE'S OTHER OPERATIONAL EXPENSES, SOME, UM, SOME SUPPLIES AND SOME CAPITAL INVESTMENTS THAT THEY CAN MAKE OUTTA THAT FUND AS WELL.
BUT THE MAJORITY OF IT IS IN SUPPORT OF THE CALL TAKERS AND DISPATCHERS.
I MEAN, AGAIN, I JUST THINK IT'S HELPFUL TO HEAR ALL THAT.
I MEAN, SOMEONE WOULD LOOK AT THIS AND SAY, GOOD LORD, WHY DO YOU HAVE 30 DIFFERENT FUNDS? AND LIKE SOME OF IT IS STATE OR FEDERAL, FEDERALLY MANDATED TO US.
AND, AND SOME OF IT TOO, THE REASON IT'S IN ANOTHER FUND IS ANYTHING ABOVE THAT SIX 50, WE TRY TO BUILD A FUND BALANCE TO MAKE SIGNIFICANT UPGRADES, AND BY ISOLATING IT, IT DOESN'T GET MIXED IN WITH OTHER NEEDS, IF YOU WILL.
IT ALLOWS US TO BUILD THAT BALANCE BY KEEPING IT IN A SEPARATE FUND.
UM, MY LAST QUESTION ON THE SPECIAL REVENUE FUNDS IS TIP TWO.
UM, IT'S A LOT HAPPENING IN THIS FUND.
UM, YOU KNOW, THERE'S A 36000000% DECREASE, YOU KNOW, AGAIN, THAT'S NOT ACCURATE ON THE FACE, BUT I'M, I'M, IF YOU COULD JUST TALK ABOUT SORT OF WHAT'S HAPPENING THERE.
I KNOW WHERE THERE'S SOME HOLDOVER FUNDS FOR DIFFERENT REASONS.
UM, I'M SURE CURIOUS ABOUT WHAT'S GOING ON.
SO THERE'S, THERE'S REALLY JUST TWO PAYEE IN TIF TWO NOW.
THERE WAS ORIGINALLY ONE, UM, KDC, THE DEVELOPER, AND THEN DART.
UM, PART OF OUR ECONOMIC DEVELOPMENT AGREEMENT REQUIRED THAT WHEN THE CITY, UH, THE, UH, SILVER LINE COTTON BELT, WHEN THE SILVER LINE WAS FUNDED AND PART OF DART'S, UM, UM, UH, FINANCIAL PLAN, UM, THAT 11% OF, UH, THE 66 AND THE THIRD PERCENT THAT KDC WAS RECEIVING WOULD BE TRANSITIONED TO DART.
WHAT YOU SEE THERE IS US ACCOUNTING FOR THE FULL AMOUNT, UM, THAT WILL HAVE TO BE PAID TO BOTH KDC AND DART.
UM, BUT DART HAS YET TO, UM, REQUEST THAT REIMBURSEMENT.
AND SO THE REASON THAT NUMBER CONTINUES TO GROW YEAR OVER YEAR, UM, IS BECAUSE WE'RE HOLDING ESSENTIALLY A RESERVING, UH, UH, MULTIPLE YEARS OF DART'S PAYMENT.
AND SO, YOU KNOW, THEY COULD COME NEXT YEAR AND, AND REQUEST PAYMENT, AND WE'D HAVE TO GO BACK, YOU KNOW, THE FOUR OR FIVE YEARS, WHATEVER IT IS, THREE OR FOUR YEARS.
IF THEY WAIT ANOTHER TWO YEARS, WE'LL BE, YOU KNOW, RESERVING FIVE OR SIX YEARS WORTH OF THEIR PAYMENT.
AND SO IT'S A LITTLE BIT OF A, A TIMING ISSUE WITH RESPECT TO, UM, ONCE, UH, ONCE WE DO MAKE THAT PAYMENT, THEN ANNUALLY, YOU KNOW, THE INCREMENT, THE INCREASE IN INCREMENT, THE ADDITIONAL REVENUE GENERATES, YOU SHOULD SEE THAT GO RIGHT BACK OUT AT A CLOSER BALANCE THAN WHAT YOU'RE SEEING NOW.
THE NUMBERS JUST LOOK A LITTLE BIT WACKY, BUT YEAH.
I JUST HAVE TWO QUESTIONS, UM, ABOUT
[01:45:01]
SOME OF THE MEANING AND WHAT THEY ENTAIL.UM, ON PAGE 1 0 2 OF THE BUDGET, THE SECOND OF THE BOTTOM PRINTING, BINDING, COPYING, HELP ME UNDERSTAND THIS.
THIS IS A VERY SMALL LINE ITEM, BUT IT'S CONSISTENT.
AND I WAS, I WAS LOOK LIKE, IS THIS JUST FOR THE, I'VE NOTICED IT'S GONE UP ACROSS THE BOARD, IT SEEMS IN THEY'RE EVERYWHERE.
SO IS THAT JUST THE UPKEEP OF COPIERS? IS THIS LIKE WHEN EMERGENCY SERVICES OR THE POLICE ARE OUT IN THE COMMUNITY AND THESE ARE THE LOW BOOKLETS ARE GIVEN OUT, AND SO A VERY SMALL PORTION OF WHAT YOU'LL SEE CHARGED THAT LINE ITEM IS OUTSIDE PRINTING.
UM, BUT WHAT YOU SEE MOST OF THAT, AGAIN, IN OUR CENTRAL SERVICES FUND, THAT'S WHERE WE HOUSE OUR COPIERS.
THEY THEN CHARGE BACK TO THE DEPARTMENT BASED ON THEIR USE.
AND IT'S RECORDED HERE, BUT LIKE, IF YOU LOOK AT THE BUDGET LINE ITEM, MOST OF OURS IS IN-HOUSE PRINTING.
WE HAVE A SMALL AMOUNT THAT WE DO TO PRINT DOCUMENTS FOR BOY SCOUTS AND STUFF LIKE THAT.
SO THERE IS SOME OUTSIDE PRINTING, BUT THE VAST MAJORITY OF THAT WOULD BE, UM, THEN BASICALLY IT'S, IT'S AN EXPENSE TO THE GENERAL FUND, BUT IN, IN ESSENCE, IT'S TRANSFERRED TO, UH, THE CENTRAL SERVICES FUND IN SUPPORT OF THE OVERALL CITY, UM, PRINTERS.
UM, YEAH, I'M LOOKING AT THE POLICE FUND, AND THIS IS NOT JUST IN THE POLICE, BUT FIRE AND, UH, CAPITAL.
THE, HELP ME UNDERSTAND THE MANAGEMENT LINE.
'CAUSE I SEE THAT'S INCREASED QUITE A BIT IN, AT THE VERY TOP RIGHT UNDER WHERE IT SAYS AT THE TOP OF PAGE 1 24, AND THEN AGAIN TOP OF PAGE 1 27, AND NOW PDS.
IF, IF YOU'RE TRYING TO LOOK AT THE, UM, THE 23 ACTUAL, WHEN WE CHANGED, UM, OUR TIME MANAGEMENT SYSTEM, HR TOOK THAT OPPORTUNITY TO STANDARDIZE WHAT POSITIONS ARE BEING PAID OUT OF WHAT CATEGORY, UH, IN A MANAGEMENT STARTING OCTOBER OF THIS YEAR, GOING FORWARD, THE ONLY THING THAT COMES OUTTA MANAGEMENT ARE DIRECTORS AND ASSISTANT DIRECTORS.
WE HAD SOME DEPARTMENTS THAT HAD EV ANYBODY THAT EVER SUPERVISED A PERSON IN MANAGEMENT OR, OR, OR WHATNOT.
UH, P POLICE SPECIFICALLY, UH, THEY DID A REORG AND THEY, THEY ARE UP ONE, UM, UH, DE UH, FIRST ASSISTANT SIT, UH, POLICE CHIEF.
UH, BUT THE, THE BIGGEST, IF, IF YOU WOULD HAVE TO, TO REALLY LOOK AT THOSE COMPARED TO 23, YOU WOULD HAVE TO GROUP ALL THREE.
THE, THE MANAGEMENT EXEMPT AND NON-EXEMPT TOGETHER.
IT, IT'S REALLY A TIMING ISSUE.
PRIOR, IN 23, THOSE LINE ITEMS WERE ACTUALLY CALLED SUPERVISION HOURLY AND, UM, CLERICAL, I BELIEVE.
AND IT'S JUST HR TOOK THAT OPPORTUNITY AS WE MOVED INTO THIS NEW GMBA SYSTEM AS WELL AS, UH, TIME MANAGEMENT AND HR SYSTEM TO STANDARDIZE WHAT POSITIONS ARE IN WHICH CATEGORY.
THE EXEMPT AND NON-EXEMPT CATEGORIES ARE TRULY BASED ON WHETHER THAT POSITION IS EXEMPT OR NON-EXEMPT FROM OVERTIME.
IT'S SIMPLY A CLASSIFICATION ISSUE.
SO I SEE WHERE THAT'S EXEMPT IS GOING DOWN IN POLICE AND FIRE, BUT MANAGEMENT GOES UP BECAUSE IT'S BEEN SHIFTED TO THE MANAGEMENT LINE VERSUS ON THAT DOESN'T NECESSARILY LAY TRUE UNDER CAPITAL PROJECTS ON ONE 30.
DID WE JUST INCREASE MANAGEMENT? WHAT PAGE? UH, ONE 30, YEAH.
CAPITAL PROJECTS IS GOING THROUGH A LITTLE BIT OF A REORG.
UH, LAST YEAR WE ADDED, UH, TWO POSITIONS, I BELIEVE.
AND AT THAT TIME, THEY WERE POSITIONS TO BE DETERMINED.
ONE OF THOSE POSITIONS WAS DETERMINED THAT THEY NEEDED AN, AN ADDITIONAL ASSISTANT DIRECTOR THAT WAS BUDGETED FOR, FOR THIS YEAR IN, UM, NON-EXEMPT, I BELIEVE, AND IS MOVING TO MANAGEMENT NEXT YEAR BECAUSE AT, AT LEAST AT THE, OR AT THIS TIME LAST YEAR, WE WEREN'T SURE WHAT THOSE POSITIONS WERE GONNA BE.
SO, JUST SO THAT I UNDERSTAND, SO IN FIRE, OR LET'S SAY POLICE, FOR EXAMPLE, WE'RE LOOKING AT SERGEANTS AND ABOVE BECAUSE THEY'RE ALL MANAGING.
SO THEREFORE THAT'S GONNA BE, UH, IN, IN PD AND FIRE, IT IS JUST THE CHIEFS AND ASSISTANT CHIEFS, UH, THAT ARE THERE.
UM, POLICE OFFICERS, SERGEANTS, CAPTAINS, FIREFIGHTERS, DRIVER ENGINEERS, THOSE ARE ALL IN, UH, THE NON-EXEMPT, UH, CATEGORY.
AND THEN THE CIVILIANS ARE PROBABLY WHAT'S IN EXEMPT.
BUT WHAT WE ONLY CONSIDER IN MANAGEMENT IS DIRECTORS AND ASSISTANT DIRECTORS AND PUBLIC SAFETY.
THAT WOULD BE THE, THE CHIEFS AND ASSISTANT CHIEFS ONLY.
SO DIRECTORS, ASSISTANT DIRECTORS THROUGHOUT THE ORGANIZATION.
SO WHEN WE HAVE A FUND THAT DOESN'T HAVE A MANAGEMENT LINE, UM, YEAH, YOU, YOU'LL SEE THAT LIKE IN THE COST CENTERS FOR PARKS, FOR EXAMPLE, ALL OF THEIR MANAGEMENT IS IN PARKS ADMIN, THAT THERE ARE NO, THAT MAKES SENSE.
DIRECTORS OR ASSISTANT DIRECTORS IN LIKE THE REC CENTERS OR THE, UM, SENIOR CENTER,
[01:50:01]
THAT KIND OF THING.SO WE'RE JUST TRYING TO STANDARDIZE IT ACROSS BOARD.
UH, FIRST OFF, DON BUDGET, BOB KENT, EVERYBODY.
I SPENT A LOT OF TIME REVIEWING IT OO OVER THE WEEKEND, AND I ALSO REALLY WANNA SAY THANK YOU.
UM, I BELIEVE IT GOT DELIVERED ON FRIDAY TO OUR HOME, SO THANK YOU FOR THAT AS WELL.
THIS IS MORE OF A GO FORWARD PHILOSOPHICAL QUESTION.
SO, AND THE MAYOR CAN CHECK ME ON THIS.
ON THE SIX YEARS THAT I'VE BEEN ON COUNCIL, IT'S EITHER BEEN, WE'VE EITHER HAD THREE OR FOUR SIGNIFICANT WEATHER EVENTS.
AND SO, YOU KNOW, WE REALLY, AND, AND IT FEEL, IT FEELS LIKE, AND AGAIN, THAT IT, THIS IS NOT EXACT SCIENCE I'M TALKING IN THE MOMENT, IS IT'S GETTING HARDER AND HARDER TO GET REIMBURSED OR FUNDS FROM FEMA.
AND SO MY, MY QUESTION IS, IS, YOU KNOW, WE'VE ALWAYS PRIDED OURSELVES VERY MUCH ON, ON CONSERVATIVELY BUDGETING, UM, WHICH I THINK WE DO.
AND I THINK, I THINK THE, I THINK IT'S A, IT'S A LONG AND, AND VERY, UM, POSITIVE HISTORY ON THAT.
I'M JUST ASKING THE QUESTION, DO WE NEED TO AT SOME POINT IN TIME COME UP WITH A, YOU KNOW, AND I, AGAIN, I DON'T EVER, MOST OF THE TIMES DON'T LIKE TO COMPARE US TO THE STATE, BUT THEY DO HAVE THE RAINY DAY FUND, UM, FOR EVENTS SUCH AS THAT.
AND SO, YOU KNOW, IT, IT SEEMS LIKE WE'VE HAD, LIKE I SAID, AT LEAST THREE OR FOUR, AND AGAIN, MAYOR, CORRECT ME.
I KNOW, I KNOW, I KNOW FOR SURE.
AND SO MY ONLY QUESTION IS, IS ON A GO FORWARD BASIS, DO WE NEED TO CONSIDER CREATING WHATEVER YOU WOULD WANT TO CALL IT, YOU KNOW, UM, UM, DISASTER FUND, UM, RAINY DAY FUND? I DON'T, THE NAMING OF IT DOESN'T, IS NOT THE IMPORTANT PART, BUT JUST ASKING THAT QUESTION.
'CAUSE WHEN I LOOK AT ALL THE FUNDS WE HAVE, YOU KNOW, KIND OF TO, TO COUNCIL WOMEN'S JUSTICE, IT'S GREAT TO BE ABLE TO REVIEW THOSE AND, AND TALK ABOUT THEM.
BUT IT'S THE ONE AREA THAT WE, THAT I, I FEEL LIKE WE KIND OF, UH, WHAT'S THE RIGHT WORD I SHOULD USE? WE KINDA LEAVE OURSELVES UNCOVERED.
UM, AND GIVEN WHAT HAS OCCURRED, BECAUSE I KNOW, YOU KNOW, WHEN WE TALKED EARLIER THIS YEAR WHEN WE HAD TO BRING IN THE, WHATEVER YOU CALL THOSE, THOSE HUGE
I KNOW THOSE ARE VERY EXPENSIVE, AND I KNOW, UH, YOU KNOW, UH, IT SEEMS LIKE WE'RE JUST NOT, NOT GETTING REIMBURSED.
SO I'M NOT SAYING IT'S SOMETHING WE NEED TO PUT IN THIS BUDGET, BUT AS I, AS I REVIEWED AND REVIEWED AND REVIEWED IT, THAT JUST KEPT BOTHER, UH, MAYBE NOT BOTHERING ME, BUT CONCERNING ME MAYBE IS, IS A BETTER WORD, AS TO DO WE NEED TO CONSIDER THAT ON A, ON A GO FORWARD BASIS? AND SO THAT IF, FOR EXAMPLE, WE WERE TO GET SOME TYPE OF REMUNERATION BACK, NOT REMUNERATION, BUT SOME, WHAT DO I WANNA SAY? REFUND, NOT REFUNDING REIMBURSEMENT, BUT REIMBURSEMENT.
REIMBURSEMENT, THAT'S WORD I'M LOOKING FOR.
REIMBURSEMENT FROM FEDERAL GOVERNMENTS.
WOULD WE WANT TO CONSIDER CREATING THAT FUND TO HAVE THERE SO THAT WE WEREN'T ALWAYS HAVING TO USE, YOU KNOW, KIND OF SAVINGS AT THE END OF THE YEAR OR OTHER THINGS LIKE THAT.
SO I JUST WANTED TO THROW THAT OUT THERE.
'CAUSE THAT'S THE ONE THING THAT TO ME WAS LIKE, KIND OF A, A TWO STRONG WORDS, BUT BEAR WITH ME KIND OF A LITTLE BIT OF A HOLE IN OUR BUDGET AS I, AS I JUST CONTINUE TO LOOK THROUGH EVERYTHING OVER THE WEEKEND AND REVIEWED IT.
SO YEAH, AND IT'S A GREAT, IT'S A, IT'S A VERY FAIR POINT AND GREAT QUESTION.
I MEAN, WHAT WE'VE TRADITIONALLY DONE, UM, YOU KNOW, TORNADO MAY 28TH, UM, YOU KNOW, UM, THE, UH, STORM OF THE, UH, SUMMER OF 19 IS WE'VE GONE BACK TO OUR CAPITAL, UM, PROJECT, SPECIAL PROJECTS FUND.
AND, UM, SO I WOULD LOVE TO TAKE THAT AS HOMEWORK AND, AND SEE IF THERE WOULD BE SOME VALUE IN ESTABLISHING A, A, A DIFFERENT FUND WHERE WE HAD A, A, A SET, YOU KNOW, SET BUDGET KIND OF IN THERE.
AND, UM, 'CAUSE IT REALLY, I MEAN, KEN'S, KEN'S POINTED THIS OUT TO ME, UH, EVEN WITH THIS MAY 28TH STORM.
I MEAN, IT'S, IT'S REALLY NOT A CAPITAL, UH, PROJECT, BUT IT'S A, IT'S A FUND THAT WE'VE BEEN ABLE TO USE FOR, UH, RESERVES IN EMERGENCY SITUATIONS BEFORE.
AND SO KEN, I'D LOVE TO TAKE THAT AS HOMEWORK AND WE CAN, WE CAN REALLY THINK THROUGH THAT AND MAYBE, YOU KNOW, MAYBE COMMIT MAYBE WITH THE, UH, FOURTH QUARTER BUDGET REPORT OR SOMETHING LIKE THAT WE CAN COME BACK WITH, UH, WITH KIND OF SOME THOUGHTS AROUND THAT.
POINT ABOUT, MM-HMM,
MAYOR, IF THAT'S OKAY, I'LL GO AHEAD AND, UH, TRANSITION, UM, TO, UM, BUT THIS IS, THIS IS JUST A, A, A DIFFERENT WAY OF LOOKING AT THAT FIRST SLIDE.
AGAIN, TOTAL OPERATING BUDGET OF 406 0 7 8 7 5 4.
UM, AND AGAIN, JUST A DETAIL BY, UM, UH, UH, THE, THE DIFFERENT OPERATING FUNDS THAT WE JUST WENT THROUGH, UH, CAPITAL AND DEBT PLANNING.
JUST AS A REMINDER, UM, OUR, OUR OUR DEBT
[01:55:01]
PLAN, UM, IS, UH, SUPPORTED BY, UH, OUR MULTI-YEAR CAPITAL IMPROVEMENT PLAN, WHICH WE'RE VERY EXCITED TO, TO CONTINUE TO EVOLVE, UM, AND JUST REALLY IN, ITS ABOUT FOURTH YEAR OF IMPLEMENTATION.UH, BUT IT'S A, IT'S AN ONGOING PLAN THAT WE UPDATE ANNUALLY AND PRESENT TO YOU AS PART OF THE CAPITAL PROJECTS.
UM, OF COURSE, UH, ALL OF OUR FINANCIAL MANAGEMENT STRATEGIES ARE, UM, ALL, UH, AIMED AT MAKING SURE THAT WE MAINTAIN THE AAA BOND RATING.
AND SO A LOT OF GOOD INDUSTRY AND, UH, BEST PRACTICES, UM, UH, WE, WE DO REVIEW OUR OUTSTANDING DEBT ANNUALLY FOR FUTURE REFUNDING OPPORTUNITIES.
THOSE ARE BECOMING A LITTLE MORE DIFFICULT TO IDENTIFY, UH, IF NOT RIGHT NOW, NON-EXISTENT.
UM, THIS DEBT PLAN IS FOCUSED ON YEAR FOUR OF THE 21 BOND PROGRAM, UH, YEAR TWO OF THE 23 BOND PROGRAM.
AND THEN AGAIN, ALL THE DEEP DIVES AND, UH, UH, COUNCILMAN CORCORAN, I JUST, UH, REMIND, UM, UH, YOU KNOW, EVERYONE THAT WE DID PROVIDE THOSE AS PART, UH, OF THE PACKET TO REALLY HELP TIE OFF, UM, A GREAT SUGGESTION REALLY HELPED TIE OFF SOME OF THE NUMBERS THAT YOU SEE IN THOSE DEEP DIVES WITH SOME OF THE NUMBERS I JUST SEE IN THIS SUMMARY CHART.
UM, IN TERMS OF OUR, OUR, UH, CURRENT DEBT PLAN, ISSUING FACTORS, UM, WE, UH, CONTINUE TO HAVE A VERY, UM, UH, CONSERVATIVE MODEL, UM, AND, UH, CONTINUES TO SERVICE VERY WELL.
SO WE CONTINUE TO PLAN AROUND, UM, INTEREST RATES THAT RANGE FROM, UH, 4, 7, 5 TO FIVE FIVE.
AND I THINK EVEN TODAY, UH, KEN, OUR LAST ISSUANCE WAS STILL POINT AND A HALF OR POINT BELOW THAT.
UM, EVEN WITH THE RATES THAT ARE OUT THERE TODAY.
UM, WE ALSO CONTINUE TO ASSUME NO GROWTH, UM, AND, UM, AND ALL THE WAY THROUGH 2028 AND OUR, UM, AND OUR VALUES, WHICH IS AGAIN, IS EXTREMELY CONSERVATIVE, UM, NUMBER.
AND SO, UM, AND THEN YOU CAN KIND OF SEE THERE, IT ASSUMES, UH, OUR 25 CO ISSUANCE OF 2.4 MILLION.
THAT'S UP FOR THE FIRE APPARATUS THAT WE DESCRIBED, UH, PREVIOUSLY.
SO HERE'S JUST A KIND OF A SUMMARY OF THAT PROPOSED DEBT PLAN.
UM, UH, AGAIN, ALL THE, ALL THE ELEMENTS HERE WILL LOOK VERY FAMILIAR TO YOU, AND THE AMOUNTS ARE ALL, UM, EASILY IDENTIFIED BY GOING BACK AND, UM, LOOKING AT THE, UH, DEEP DIVES THAT WE DID EARLIER THIS YEAR.
UH, HERE, I'LL GO AHEAD AND STOP AGAIN.
I DON'T KNOW IF THERE'S ANY QUESTIONS RELATED TO ANY OF THE CAPITAL PROJECTS FUNDS.
SO, UH, AGAIN, ISOLATING THESE FUNDS BECAUSE THESE ARE, UM, RELATED TO, UH, CAPITAL PROJECTS.
THEY'RE NOT PART OF THAT $406 MILLION OPERATING BUDGET THAT WE DESCRIBED.
SO I'D BE HAPPY TO PAUSE HERE FOR A SECOND AND TAKE ANY QUESTIONS.
UM, I REALLY ONLY HAVE ONE QUESTION HERE.
I THINK OF THE ONES I FEEL COMFORTABLE WITH, UM, ON, UH, PAGE 85, THE WATER AND SEWER RATE STABILIZATION FUND.
UM, IT WAS ESTABLISHED IN 1996 AND 97.
IT TALKS ABOUT, YOU KNOW, STABILITY RELATED TO WATER AND SEWER RATE INCREASES.
AND I DON'T REALLY THINK THAT'S AN ACCURATE DESCRIPTION ANYMORE.
SO CAN YOU TALK ABOUT SORT OF WHAT THE PURPOSE OF THIS FUND, UM, REALLY IS? SURE.
UH, SO JUST, SO STARTING, UH, AS YOU JUST SAID, SO WHEN THE FUND WAS INITIALLY, UM, UM, CREATED, UH, THERE WAS A THOUGHT AROUND, UM, YOU KNOW, IF WE HAD, UM, LET'S SAY AN EXTREMELY WET YEAR, FOR INSTANCE, AND, UM, WATER SALES WERE DRAMATICALLY BELOW WHAT WE ANTICIPATED, UM, THIS FUND COULD HELP OFFSET PART OF THOSE.
THERE WAS ALSO SOME DISCUSSION PARTICULARLY AROUND, UM, UM, THE TIME WHERE THE WATER DISTRICT STARTED TO UP THE RATES IN A, IN A MORE AGGRESSIVE WAY.
UM, THERE WAS SOME, SOME TIME AROUND WOULD THE COUNCIL UTILIZE SOME OF THESE FUNDS TO, I'D SAY, UH, THAT'S PROBABLY THE BEST WORD IS TO MITIGATE THE PASS ON, UM, TO RESIDENTS FROM THE WATER DISTRICT.
SO WOULD THEY USE SOME OF THESE FUNDS TO MITIGATE THE INCREASES IN THE WHOLESALE WATER CHARGES THAT WERE GONNA HAVE TO BE ABSORBED, IF YOU WILL, FULLY BY, UH, RESIDENTS.
AND, AND, AND, UM, AND SO THERE WAS A LOT OF DISCUSSION, UM, AROUND THAT AS WELL.
UM, ONE OF, UH, AND, AND OF COURSE, THAT QUESTION REALLY BECAME, I THINK, MUCH MORE, UM, OF AN ISSUE WHEN WE STARTED SEEING WATER RATES INCREASE, UM, SO DRAMATICALLY SO QUICKLY YEAR AFTER YEAR AFTER YEAR, BECAUSE HONESTLY, FOR A LONG TIME THEY WERE HELD SO, UH, ARTIFICIALLY LOW MM-HMM,
UM, TODAY THIS FUND IS MORE ABOUT, UM, KINDA A SECURITY BLANKET THAN IT IS ABOUT MITIGATING THE PASS ON, UH, FROM THE WHOLESALE RATE INCREASES TO THE RESIDENT.
UM, AS A MATTER OF FACT, PRIOR COUNCIL, AND I THINK THIS COUNCIL HAS CONFIRMED, YOU KNOW, WE, WE NEED TO BE MINDFUL OF, UH, MAINTAINING OUR WATER DISTRIBUTION SYSTEM.
AND SO, UM, WE HAVE TO KIND OF STRIKE THE BALANCE BETWEEN MAKING SURE THAT WE TRY TO PASS ON AS LOWER RATE AS POSSIBLE TO THE RES LOW, AS LOW A RETAIL RATE AS POSSIBLE TO RESIDENTS, BUT ALSO MAKE SURE THAT WE'RE NOT DOING THAT AT THE EXPENSE OF, UM, YOU KNOW, PAYING OUR, OUR PEOPLE A FAIR SALARY OR MAKING SURE THAT WE'RE DOING THE REQUIRED IMPROVEMENTS AND MAINTENANCE TO OUR SYSTEM.
AND SO, UM, I THINK WE, UH, WE WOULD BE HAPPY TO, UH, AS WE, AS WE KIND OF RETHINK THESE, UH, FUND SUMMARIES IN THE WAY THAT WE DESCRIBE THEM AND ADD THE ADDITIONS, WE CAN RETHINK A LITTLE BIT HOW WE WANT TO KIND OF PHRASE
[02:00:01]
THE, THE PURPOSE OF THIS, UH, FUND.UM, IN REALITY, IF IT WAS GONNA SERVE THE PURPOSE OF BEING ABLE TO MITIGATE A, FOR INSTANCE, AN EXTREMELY WET YEAR
UM, SO I TOTALLY AGREE WITH YOUR, WITH YOUR POINT AND, AND WE CAN, UH, TRY TO, UH, UH, GET MAYBE A LITTLE BIT MORE ARTICULATE AND ACCURATE AROUND THE DESCRIPTION SO THAT IT'S MORE CLEAR TO, YOU KNOW, MORE, MORE RESIDENTS THAT MAYBE DON'T HAVE THE BACKGROUND.
YEAH, I THINK THAT WOULD GOOD.
IT'S BEEN AROUND 30 YEARS AND IT'S EVOLVED MM-HMM.
SO I THINK IT WOULD BE GOOD JUST TO LOOK AT IT TO MAKE SURE WE'RE ACCURATELY DESCRIBING IT AND IF WE DO NEED TO FIGURE OUT HOW TO ADD MORE FUNDS TO IT, TO YOUR POINT, YOU KNOW, HAVE THAT DISCUSSION AS WELL, MR. CORCORAN.
I, UM, A LOT OF MY, MY QUESTIONS ARE REALLY MORE KIND OF ALONG THE, UM, COUNCILMAN HUTCHIN WRITER OUT OF MORE PHILOSOPHICAL TYPE.
LIKE WHAT IF, OR LIKE, SHOULD WE LOOK AT SOMETHING TYPE QUESTIONS? I MEAN, WHENEVER, UM, WHENEVER WE HAD OUR ORIGINAL DEEP DIVES, AND I'D ASKED ABOUT TYING EVERYTHING BACK TOGETHER WITH THE, WITH, SORRY, WHEN WE HAD OUR BUDGET WORKSHOP, AND I ASKED ABOUT TYING EVERYTHING WITH THE DEEP DIVES IS BECAUSE I LOOKED AT THE WATER WASTEWATER INFRASTRUCTURE AND HAD A LITTLE BIT OF LIKE, STICKER SHOCKER, LIKE THE TOTAL AMOUNT.
AND IT, THE DEEP DIVE WAS HELPFUL 'CAUSE I WAS ABLE TO LOOK BACK AND SAY, OH, IT'S BECAUSE WE'VE BROKEN IT UP INTO SEVERAL SECTIONS THERE.
AND SO IT'S NICE TO, TO SEE BOTH, RIGHT? SO I WANNA THANK YOU GUYS FOR FOLLOWING THROUGH ON THAT AND GETTING THAT OVER TO US IN, IN TIME.
AND, YOU KNOW, I, SOMETHING I'D DONE WAS, I ACTUALLY, UM, YOU DON'T HAVE A LOT OF SORT OF LIKE LINE ITEM QUESTIONS, BUT I DID DO A BIG COMPARISON OF OUR DEBT, LIKE HOW MUCH WE'RE PAYING FOR OUR DEBT VERSUS THE ACTUAL WATER FUND, RIGHT? LIKE THE TOTAL AMOUNT THAT WE HAVE IN THERE.
AND WHAT'S INTERESTING IS LIKE, I KNOW THIS IS INTENTIONAL, YOU GUYS KEEP IT ROUGHLY THE SAME AMOUNT, EVEN IF IT INCREASES RIGHT YEAR OVER YEAR, MAYBE A COUPLE PERCENTAGE POINTS DIFFERENT.
UM, AND SO MY QUESTION IS, IS THERE REALLY, IS THERE EVER A SCENARIO THAT WE CAN ENVISION WHERE THERE'S THIS INFLECTION POINT WHERE, SAY IF IT'S AT 8%, NOW THAT RATIO STARTS GOING DOWN TO MORE LIKE 5% OR 4%, RIGHT? OR THE OTHER WAY AROUND, I MEAN, WHERE WE REALLY RATCHETED UP AND, AND TAKE IT MORE LIKE 10%, 11%, 12%, UM, OR IS, IS OUR REALLY OUR COMMITMENT AND OUR GOAL TO KIND OF KEEP IT AS, YOU KNOW, AS THE AMOUNT OF MONEY THAT WE SPEND RISES, SO DOES THE AMOUNT OF DEBT THAT WE MM-HMM
DOES THAT MAKE SENSE? I'M SORRY.
IT WASN'T REALLY A REHEARSED QUESTION.
SO
UM, SO THE REASON I DON'T SEE IT DRAMATICALLY CHANGING, UM, IS BECAUSE OUR INFRASTRUCTURE IS GETTING OLDER AND IT'S, IT'S MM-HMM.
AND BECAUSE IT'S, SOME OF IT IS BECOMING, YOU KNOW, 15 OR 20 YEARS BEYOND, BEYOND ITS EXPECTED, UM, UH, USEFUL LIFE, THE DETERIORATION IS STARTING TO ACCELERATE.
AND SO, YOU KNOW, I, I'VE TRIED TO CUE OFF OF THE, YOU KNOW, THE COUNCILS ALL THE WAY BACK TO 13 WHEN WE STARTED TO DO THE TRANSFERS OUT.
AND, YOU KNOW, I KNOW OUR CORE INFRASTRUCTURE IS, UM, IT, IT OF DISCOUNTS YOU'VE TOLD, YOU'VE SAID IT'S A HIGH PRIORITY.
AND SO WE, WE CONTINUE TO, TO STRIKE THE BALANCE OF KEEPING THE, THE PROPORTION OF THE WATER, UH, RATE THAT'S USED FOR DEBT SERVICE KIND OF IN LINE MM-HMM.
BUT I REALLY DON'T EVER SEE IT GOING DOWN.
I MEAN, HONESTLY, I WOULD LIKE TO SEE IT GO UP BECAUSE RIGHT NOW, WELL, NOT, NOT BECAUSE I WANT MORE DEBT, I WANT TO IMPROVE OUR INFRASTRUCTURE.
AND I, AND AGAIN, I, I THINK THAT WHAT WE'RE SEEING IS, AND THERE'S, UH, YOU KNOW, ENGINEER IN THE ROOM PROBABLY CAN SPEAK BETTER TO THIS, BUT WHAT WE'RE SEEING IS, IS AS EVERY
[02:05:01]
YEAR THE INFRASTRUCTURE EXCEEDS THAT EXPECTED USEFUL LIFE, IT, THE DETERIORATION IS ACCELERATING.AND SO I'M WORRIED ABOUT THE TIPPING POINT WHERE WE GET TO A POINT WHERE WE HAVE A LOT OF INFRASTRUCTURE THAT'S JUST NOT USABLE.
UM, AND, AND SO I WOULD, I WOULD LIKE TO CONTINUE TO BE AS AGGRESSIVE AS WE CAN, UM, ON INFRASTRUCTURE REPAIR.
AND BECAUSE OF THE, THE COMPLEXITY AND THEREFORE THE COST OF THOSE PROJECTS, IT NECESSITATES, UH, DEBT.
I WOULD, I WOULD SAY BY USING DEBT TO MAKE, TO DO THOSE LARGE INFRASTRUCTURE PROJECTS LIKE THE A 25 ZONE PROJECT FOR INSTANCE, YOU KNOW, THAT IS A, THAT'S A RATE CONTROL STRATEGY, BECAUSE IF WE TRY TO DO THOSE AS PAYGO, YOU KNOW, OUR, OUR RATE INCREASES TO YEAH.
TO RES TO, TO OUR WATER USERS, TO OUR CUSTOMERS WOULD JUST BE ASTRONOMICAL.
AND SO, UM, YOU KNOW, I, I BELIEVE I HEAR FROM THE COUNCIL, AND I BELIEVE, I HEAR FROM THE COMMUNITY THAT INFRASTRUCTURE'S A HIGH PRIORITY.
AND THE, THE, THE PROBLEM IS OUR INFRASTRUCTURE, YOU KNOW, I THINK, WHAT IS THE NUMBER? IT'S 80% OF OUR, OUR STREETS AND ALLEYS ARE, YOU KNOW, 40 YEARS OR OLDER NOW.
AND SO IS THE WATER AND WASTEWATER UNDERNEATH
AND SO IT'S A, IT'S A, IT'S A, IT'S A BIG CHALLENGE.
I THINK WE'RE DOING A LOT BETTER, YOU KNOW, YEAR OVER YEAR BECAUSE OF YOUR SUPPORT AND ALLOWING US TO INCREASE.
UM, BUT EVERY YEAR IT COSTS MORE AND EVERY YEAR WE HAVE MORE FAILURES BECAUSE OF THE AGE OF THE INFRASTRUCTURE.
NO, I, UM, YOU KNOW, EVERY SO OFTEN PEOPLE WILL COMPLAIN TO ME ABOUT EITHER THE, YOU KNOW, THE BONDS THAT WE ISSUE OR THE INCREASE IN DEBT THAT WE HAVE, AND I ALWAYS KIND OF JUST SAY LIKE, YOU HAVE NO IDEA WHAT THE TRUE COST OF MAINTAINING ALL OF THAT WOULD BE TO YOU AND EVERYONE ELSE.
IF IT WAS JUST THROUGH NORMAL REVENUE METHODS.
I MEAN, IT WOULD BE INSANE, RIGHT.
AND, AND THE DEBT STRATEGY ALLOWS IT TO BE MULTI-GENERATIONAL.
THEY'RE GONNA BENEFIT RESIDENTS AND BUSINESSES FOR TWO TO THREE DECADES TO COME.
SO IT ALLOWS THAT COST TO BE SHARED BY EVERYONE.
NO, THAT'S REALLY, I MEAN, IT'S REALLY HELPFUL TO EXPLAIN IT THAT WAY, DAWN, AND, AND SORT OF THE PHILOSOPHY BEHIND WHY IN SOME WAYS DEBT IS MORE EQUITABLE, UM, IN THE LONG TERM.
UH, JUST, JUST REAL QUICK ON THE, THE GENERAL FUND SIDE OF IT TOO, UM, YOU KNOW, WHAT WOULD, BECAUSE I KNOW IT'S THE SAME THING, RIGHT? THE RATIO IS ROUGHLY THE SAME EVERY YEAR GOING BACK A DECADE, UM, IS, YOU KNOW, WHAT WOULD'VE HAPPENED THIS YEAR IF THE PROPERTY TAXES HADN'T GONE OUR WAY AND OR WE'D SEEN, OR OF NEXT YEAR, RIGHT? LIKE THERE'S A DRAMATIC DECREASE IN COMMERCIAL VALUES AND SALES TAX CONTINUES TO BE A, A THORN IN OUR SIDE TO SAY THE LEAST.
UM, YOU KNOW, HOW DOES, HOW DOES THAT RATIO THAT WE HAVE PAYING OFF DEBT COMPARED TO GENERAL FUND REVENUE WORK? I MEAN, WOULD THAT, WOULD THAT INCREASE? WOULD WE FIND SOME WAY TO DECREASE THE AMOUNT THAT WE, THAT WE PAY OUT? UM, YOU KNOW, KIND OF WHAT'S THE STRATEGY THERE? LET ME, UH, LET ME ASK KENT OR ANITA A WAY IN, BUT YOU KNOW, KENT CAN SPEAK TO THE, TO WAY WE MANAGE THE DEBT THROUGH FAIR BILL RATE, UM, UM, DEBT THAT WE PURPOSELY INCLUDE TO STRUCTURE.
SO GO AHEAD AND WE DO HAVE A, A SMALL AMOUNT OF WHAT'S CALLED ADJUSTABLE RATE THAT WE COULD KIND OF PUSH OUT A LITTLE BIT.
BUT I THINK IF, IF SOMETHING DRASTICALLY HAPPENED, YOU KNOW, WE DO HAVE TO, WE'VE COMMITTED WITH THE EXISTING DEBT TO LEVY A TAX RATE THAT WOULD PAY OFF THAT DEBT.
BUT THAT SAID, I THINK WHAT YOU WOULD DO IS PROBABLY, LIKE WE DID BACK IN THE, OH, EARLY TWO THOUSANDS IS WHAT THE 97 PROGRAM IS.
WE DELAYED ISSUING DEBT FOR A FEW YEARS.
SO RATHER THAN ISSUING A FIVE YEAR PLAN, MAYBE WE WOULD EXTEND THAT OUT AND WAIT A COUPLE YEARS AND, AND ISSUE DEBT.
SO WE HAD KIND OF BACK OFF WHAT WE HAVE AND WE'D LOOK AT, WOULD THERE BE AN OPPORTUNITY TO REFUND SOME EXISTING DEBT AND TAKE ADVANTAGE OF ANY STRUCTURING KIND OF, OF, OF ANY EXISTING DEBT.
BUT THOSE WOULD PROBABLY BE OUR OPTIONS.
I MEAN THAT'S THE BENEFIT TO, TO THE, TO SERIAL SALE APPROACH.
AND SO THAT'S, THAT'S KIND OF THE DELAY WE HAD TO, WE HAD TO IMPLEMENT.
BUT I THINK, BUT I THINK THAT WOULD BE, I MEAN, I THINK THAT WOULD BE, THE COMBINATION IS EITHER IT WOULD BE A COMBINATION STRATEGY, EITHER BE ABLE TO, YEAH.
I MEAN, IT WOULD PROBABLY BE A MULTI MULTIFACETED STRATEGY WE'D HAVE TO COME UP WITH, HAVE TO SEE WHAT WE COULD DO.
I SEE WITH THE, WITH THE ADJUSTABLE RATE AND HOW WE COULD POTENTIALLY, YOU KNOW, PUSH OUT, UM, SOME OF THAT DEBT.
SO WE, WE COULD, WE WOULD HAVE, UH, LESS OF THE DEBT SERVICE GOING
[02:10:01]
TO THAT AND, AND IF WE WANTED TO TRY TO MAINTAIN THE BOND PROGRAM PROJECTS.YOU, YOU, YEAH, THAT MAKES SENSE.
COULD YOU MAKE OPERATIONAL CUTS ON THAT SIDE OF THE DEBT DEBT RATE MM-HMM.
RELATIVELY SMALL ADJUSTMENTS THAT ALL ADD UP TO SOMETHING THAT MIGHT BE IMPACTFUL.
UM, NO, THAT'S, I MEAN, THAT'S JUST GOOD TO KNOW.
I'M, I'M NOT WORRIED, BUT IT'S AGAIN, KIND OF LIKE MAJOR WEATHER EVENTS.
IT'S SOMETHING THAT I, I THOUGHT ABOUT WHENEVER I WAS GOING THROUGH THIS, THIS WEEKEND.
MY, MY LAST QUESTION FOR Y'ALL IS JUST ON NOT HAVING TO DO WITH THAT AT ALL.
BUT IF SOMEONE WERE TO EITHER MAKE LIKE AN OPEN RECORDS REQUEST OR ASK A QUESTION ABOUT, YOU KNOW, HEY, LIKE THESE, I WANT TO KNOW LIKE THE MANAGEMENT EXPENSES FOR THIS DEPARTMENT GOING BACK A DECADE MM-HMM.
SO THEY WOULD GET THE PRINTOUT OF THE, THE, THE DETAIL, UM, AS IT WAS, UM, YOU KNOW, IN ASS 400, UM, THAT THE SYSTEM WE USED PRIOR TO THAT.
NOW WE COULD, WE COULD TRY TO, AND WE WOULD BE HELPFUL TO TRY TO EXPLAIN TO 'EM, YOU KNOW, WHAT LINE ITEM TRANSITIONED INTO WHAT LINE ITEM OR LINE ITEMS AND THEN VICE VERSA.
BUT THERE'S NO WAY FOR US TO GO BACK AND RECREATE, YOU KNOW, THE PRIOR EIGHT YEARS OF THE, THE LINE ITEM DETAIL IN THE NEW SYSTEM.
AND WE WOULD NEVER, TO Y'ALL'S KNOWLEDGE, THERE'S NO STATE REGULATORY REPORTING REQUIREMENTS OR ANYTHING THAT WOULD REQUIRE US TO DO THAT ANYWAY.
NO ADDITIONAL QUESTIONS MR. MAGNER.
I WILL WRAP THINGS UP HERE, MAYOR.
UM, IMPORTANTLY, UH, ALL OF THIS, UM, HAS IMPLICATIONS FOR OUR TAXPAYERS AND, UH, WE ALWAYS LIKE TO FINISH WITH JUST A, UH, SUMMARY SLIDE HERE.
SO IF YOU, UH, LOOK AT, UH, FY 2324 COSTS, AND YOU LOOK AT THE PROPOSED COST AND YOU SEE THE ANNUAL DOLLAR CHANGE THERE.
SO FOR THE TYPICAL RATE PAYER, UH, UM, A TYPICAL TAXPAYER, UM, THEY'RE LOOKING AT $132 ADDITIONALLY, UH, AND A CITY PORTION OF PROPERTY TAXES, UH, APPROXIMATELY 29 AND $14 EACH FOR WATER AND SEWER, $12 FOR DRAINAGE, AND THEN $26, UH, FOR, UM, FOR THE, UH, RESIDENTIAL SOLID WASTE INCREASES.
UH, AND, AND, UH, FOR A TOTAL OF ABOUT $213, UH, A YEAR OVER YEAR INCREASE FOR, UM, ALL THE SERVICES PROGRAMS THAT WE'VE, UH, WE'VE DESCRIBED, AND THEN ME AS WE MOVE FORWARD.
I KNOW IMPORTANTLY, UM, DISCOUNTS WAS ALWAYS, UM, ENCOURAGING RESIDENTS TO, TO TAKE PART TO SHARE THEIR FEEDBACK ABOUT THE PROPOSED BUDGET.
WE HAVE A PUBLIC HEARING THAT IS, UH, THAT IS, UH, SET FOR SEPTEMBER 9TH, UM, ON THE, UH, PROPOSED TAX RATE.
UM, WE'LL HAVE THAT PUBLIC HEARING NOTICE BE POSTED IN DALLAS MORNING NEWS AS WELL AS ON OUR CITY WEBSITE.
UH, AND YOU CAN SEE THERE FROM THE CHART AT THE BOTTOM, UM, THE TOTAL TAX RATE, THE AVERAGE HOMESTEAD TAXABLE VALUE, UH, TAX ON AN AVERAGE HOMESTEAD, AND THEN TAX LEVY ON ALL PROPERTIES IS INCLUDED IN THAT NOTICE AS WELL.
UH, AND THEN, UH, SUBSEQUENT TO THAT, A WEEK LATER, WE'LL HAVE THE PUBLIC HEARING ON THE BUDGET AND COUNSEL, YOU'LL HAVE, UM, A VARIETY OF, UH, SEVERAL ACTION ITEMS ON YOUR, ON YOUR, UM, AGENDA THAT NIGHT FOR, UH, ADOPTION CONSIDERATION.
AND THEN OF COURSE, UH, OUR NEXT BUDGET UPDATE SUBSEQUENT TO THAT WILL BE, UH, Q4, UH, 2324, UH, WRAP UP REPORT, UM, WHERE, UM, WE'LL HOPEFULLY CAN HAVE SOME OF THESE OTHER KIND OF HOMEWORK ASSIGNMENTS, UH, AS IN TOW, UH, WHEN WE DO THAT AS WELL.
WE'D BE HAPPY TO TAKE ANY ADDITIONAL QUESTIONS OR FEEDBACK.
COUNSEL, ANY COMMENTS? ALRIGHT, I THINK EVERYBODY IS VERY SATISFIED AND I'LL JUST SAY I WOULDN'T THANK THE ENTIRE FINANCIAL TEAM, ANITA, BOB, KARA, KENT, EVERYBODY.
I I THINK THAT THE FACT THAT Y'ALL MET OUR GOALS, OUR STRATEGIES, OUR HIGH QUALITY OF EMPLOYEES, STRONG FUND BALANCES, THE THINGS THAT THE COUNCIL HAS SAID WERE IMPORTANT TO US, YOU'VE HIT THOSE.
AND I REALLY APPRECIATE THE FACT THAT WITH THE MANY QUESTIONS THAT WE HAD FROM COUNCIL, I WANNA THANK THE COUNCIL FAR THOSE QUESTIONS BECAUSE I KNOW THAT MANY OF THOSE ARE GENERATED THROUGH A YEAR OR TWO YEARS OF PEOPLE SAYING WHY OR HOW.
AND I THINK IT'S REALLY IMPORTANT THAT Y'ALL HAVE DONE A FABULOUS JOB OF THE TRANSPARENCY.
I THINK IT'S REALLY IMPORTANT THAT WE ARE FOLLOWING BEST PRACTICES.
[02:15:01]
IT'S DOCUMENTED.YOU'VE DONE THE BENCHMARKING, YOU'VE SHARED IT WITH, UH, UM, THE COMPARISON BETWEEN THE OTHER CITIES.
UM, YOU KNOW, YOU SHARED A GREAT UNDERSTANDINGS OF THE CAUSE AND EFFECT OF WHAT HAS HAPPENED IN OUR WORLD TODAY.
TODAY'S A TOTALLY DIFFERENT WORLD THAN IT WAS LAST YEAR AT THIS TIME AND TWO YEARS AGO.
SO BEING ABLE TO PIVOT, ADJUST, AND THEN STILL BE ABLE TO SAY WHY I THINK IS REAL IMPORTANT.
I THINK YOU'VE DONE A, A HUGE SUPERIOR JOB AND I THINK OUR CITIZENS ARE BENEFITING FROM THIS.
SO COUNSEL, THANK YOU AND STAFF, THANK YOU VERY MUCH.
SO, ALRIGHT, THAT BRINGS US TO
[C. REPORT ON ITEMS OF COMMUNITY INTEREST]
NUM ITEM NUMBER C, REPORT ON ITEMS OF COMMUNITY INTEREST.COUNSEL, ANYBODY GOT MR. BARRIOS? THANK YOU, MAYOR.
UH, LAST TUESDAY, SEVERAL OF US HAD THE OPPORTUNITY OF VISITING, UH, THE DIALOGUE INSTITUTE LOCATED HERE IN RICHARDSON, THE EXECUTIVE DIRECTOR WHO'S SAYING HE WILL BE LEAVING AS HE MOVES ON TO OTHER THINGS.
HE AND HIS FAMILY WILL BE RELOCATING TO WASHINGTON, DC AS HIS WIFE, UM, PURSUES AN OPPORTUNITY, UM, A CAREER OPPORTUNITY IN THAT AREA.
SO THANK MANY THANKS TO HUSSEIN, WHO'S BEEN A GREAT PARTNER TO OUR COMMUNITY, TO OUR CITY.
UM, ALL OF US, UH, HERE ON THE COUNCIL HAVE HAD A CHANCE TO WORK WITH HIM AND, AND, UH, UM, TALK WITH HIM OVER THE TIME HE'S SPENT HERE IN RICHARDSON.
AND WE THANK HIM FOR HIS IMPACT AND MANY BLESSINGS TO HIM AND HIS FAMILY AS THEY MOVE ON TO OTHER THINGS IN LIFE.
UM, ON WEDNESDAY, AUGUST 14TH, I HAD THE HONOR OF, UM, ATTENDING THE ORIENTATION FOR LEADERSHIP NORTH TEXAS, CLASS 16, WHICH I WILL BE A PART OF.
SO THAT JUST STARTED THIS LAST WEEK.
AND I LOOK FORWARD TO, UH, JOINING, UM, MANY OTHERS THROUGHOUT THE NORTH TEXAS AS WE LEARN AND GROW AND LOOK AT, UH, LEADERSHIP FROM A REGIONAL LEVEL.
SO I KNOW MANY OF MY COLLEAGUES ON THE COUNCIL HAVE BEEN THROUGH IT.
I SAW SEVERAL OF Y'ALL'S NAMES IN THERE.
AND, UH, I LOOK FORWARD TO, TO LEARNING, UH, THROUGH THAT PROCESS OVER THE NEXT YEAR.
THANK YOU, MR. HUTCHER RUNNER.
ON TUESDAY THE 13TH, WE HAD THE OPPORTUNITY TO HAVE THE COUNCIL EDUCATION COMMITTEE, UM, COUNCILWOMAN JUSTICE AND MYSELF WERE ABLE TO ATTEND.
WE HAD AMY KING FROM WEST COAST UNIVERSITY COME AND PROVIDE A GREAT OVERVIEW OF THE CONTINUED WORK THAT THEY DO IN THE REALM OF EDUCATION.
UM, AND THEY'RE JUST GROWING BY LEAPS AND BOUNDS AND IT IS JUST IMPRESSIVE AS CAN BE AS TO WHAT THEY'RE DOING AS FAR AS PRODUCING, UM, HEALTHCARE WORKERS, ESPECIALLY NURSES, PHYSICIANS, ASSISTANTS AND OTHERS INTO THE, INTO OUR COMMUNITY.
AND SO A HUGE THANK YOU TO AMY AND TO WEST COAST UNIVERSITY FOR WHAT THEY'RE, WHAT THEY'RE DOING.
UM, WEDNESDAY, UH, WE HAD THE PUBLIC EDUCATION, UH, WORKSHOP, UH, WHICH WAS AT THE HYATT IN, UH, AT DFW, UH, TO DISCUSS THE DART FUTURE PLANS FOR DART AND TRANSPORTATION AND ALSO, UM, WORKFORCE DEVELOPMENT, WHICH WAS EXTREMELY, UH, INTERESTING.
OF COURSE, UH, WE HAD OUR VERY OWN, UH, YOU KNOW, DON MAGNER WAS ONE OF OUR PANEL DISCUSSIONS ALONG WITH, UH, PEDRO, WHICH IS A COLLEAGUE OF MINE IN, UH, LEADERSHIP NORTH TEXAS.
AND, UM, THAT WAS VERY EDUCATIONAL.
AND THEN ON SAT OUR SUNDAY, UH, I BELIEVE WE HAD THE, UH, DOG SPLASH, UH, AT HIGHLAND TERRACE, WHICH WAS A REALLY GOOD, UH, TURNOUT.
IT WAS SUPER HOT, BUT, UH, BUT IT WAS A REALLY GOOD TIME TURNOUT.
IT LOOKED LIKE, UH, THEY WERE HAVING A LOT OF FUN.
THANK YOU FOR MENTIONING THAT.
AS FAR AS DOGGY SPLASH DAY, I HAD, I WROTE AN ARTICLE OR LITTLE BLURB ON IT AND I MISNAMED IT.
IT WAS FURRY FRIENDS, NO, NOT ANIMAL LOVE.
SO I GET TO A SHOUT OUT TO RAYMOND WHO I, UH, MISSPOKE.
SO I APOLOGIZE FOR CALLING HIS ORGANIZATION THE WRONG NAME.
UM, UH, SEVERAL OF US, INCLUDING YOU, HAD THE CHANCE TO, UH, WELCOME BANCHAN, UH, KOREAN FRIED CHICKEN HERE TO RICHARDSON.
IT'S REALLY EXCITING, IT'S REALLY GOOD AND IT IS REALLY SPICY, BUT
I CAN HANDLE THE HEAT, DON'T WORRY.
ALRIGHT, SEE YOU NO MORE, UM, COMMUNICATION.
WE'RE GONNA CALL THIS MEETING ADJOURNED AT 8:19 PM THANK YOU VERY MUCH, MAYOR.
COUNSEL, IF YOU WANNA TAKE LIKE FIVE MINUTES, WE'RE GONNA SET UP HERE.