[00:00:01]
[CALL TO ORDER]
I CALL THIS MEETING OF THE RICHARDSON CITY COUNCIL TO ORDER AT 6:00 PM ITEM A IS PUBLIC COMMENTS ON AGENDA ITEMS AND VISITORS FORM.MR. MAGNER, UH, THANK YOU MAYOR.
WE ARE NOT IN RECEIPT OF ANY CARDS IN ADVANCE OF THE 5:00 PM DEADLINE, AND I DON'T BELIEVE ANYONE'S, UH, SIGNED UP TO SPEAK.
IS THERE ANYONE IN THE AUDIENCE THAT INTENDS TO SPEAK? ALRIGHT, SEEING NONE, UH, WE'LL MOVE
[B. REVIEW AND DISCUSS FISCAL YEAR 2025-2026 BUDGET FOR OPERATIONS, CAPITAL IMPROVEMENTS, AND DEBT SERVICE]
ON TO ITEM B, REVIEW AND DISCUSS FISCAL YEAR 20 25, 20 26, BUDGET FOR OPERATIONS, CAPITAL IMPROVEMENTS AND DEBT SERVICE.MAYOR, COUNCIL, UH, WE'RE VERY EXCITED, UH, TO BE, UM, HERE TONIGHT TO HAVE THIS CHANCE TO, UH, ACTUALLY OVER THE NEXT TWO NIGHTS TO HAVE A, A, A PRODUCTIVE DIALOGUE AND DISCUSSION WITH YOU ABOUT, UH, UM, OUR FY 26 BUDGET.
UH, I WANT TO GO AHEAD AND, UH, AND, AND, UH, JUST MAKE A COUPLE ACKNOWLEDGEMENTS.
I WANNA WELCOME, UH, BOB KLEIER, OUR BUDGET OFFICER, AND TODD CASTOFF, OUR DIRECTOR OF FINANCE, OF COURSE, OUR A CM TEAM.
ALSO WANNA, UH, ACKNOWLEDGE CHIEFS, UH, TITTLE AND VY.
UM, AS, UH, YOU'LL SEE TONIGHT AS WE GO THROUGH, THERE ARE SEVERAL ITEMS THAT, UM, WE FELT IT WOULD BE PRUDENT TO HAVE THEM HERE IF WE NEED TO GO A LITTLE BIT DEEPER BELOW, UH, KIND OF BELOW THE SURFACE AND GET INTO SOME DETAILS.
I WANTED TO MAKE SURE THAT YOU HAD THE BENEFIT OF THEIR FIRSTHAND, UM, UM, EXPERIENCE AND, AND KIND OF EXPERTISE.
UM, OUR, EXCUSE ME, OUR APPROACH FOR TONIGHT WILL BE, UH, SIMILAR TO WHAT WE'VE USED IN YEARS PAST.
UH, I'LL GIVE YOU JUST A QUICK, UH, OVERVIEW HERE OF, UH, OF OUR, UH, BUDGET PROCESS SHORTLY.
THEN WE'LL TALK ABOUT, UH, SOME OF THE GOALS THAT WE'D LIKE TO ACCOMPLISH OVER THE NEXT TWO EVENINGS.
UM, WE'LL, UH, QUICKLY JUST TALK ABOUT, UH, SEVERAL TACTICS, UH, UH, THAT, UH, WE WILL, UH, HELP ACHIEVE, UH, TONIGHT, UH, THROUGH, UH, THE, THE, UH, BUDGET DEVELOPMENT PROCESS.
AND THEN, UH, REALLY WANT TO, UH, TALK TO YOU ABOUT SOME ECONOMIC INDICATORS.
THIS IS, UH, THINGS THAT, UH, HAVE BEEN HEAVY ON, ON OUR MIND.
UH, THERE ARE THINGS THAT ARE IN THE MINDS OF OUR BUSINESS, UH, LEADERS, AND, UH, THEY HAVE SIGNIFICANT IMPACTS, UM, IN TERMS OF, UH, OUR LOCAL REVENUE.
AND SO WE WANTED TO, TO SHARE THAT WITH YOU, TALK ABOUT SOME LEGISLATIVE IMPACTS, WHICH, UH, UH, ARE, UH, EQUALLY, UH, HAVE THE POTENTIAL TO BE EQUALLY IMPACTFUL.
UH, THEN I'LL COVER THE GENERAL RUN, UH, GENERAL FUND REVENUE, UH, AND OUR ECONOMIC OUTLOOK.
AND THEN IMPORTANTLY, GET INTO THE KEY FOCUS AREAS OF PEOPLE, PUBLIC SAFETY, UH, AND PROJECTS AND INFRASTRUCTURES.
I'M GONNA THEN TURN IT OVER TO, UH, BOB, WHO'S GONNA, UH, TALK TO YOU ABOUT SOME FEE RECOMMENDATIONS, UH, AND OUR GENERAL FUND EXPENDITURES.
AND THEN I'LL COME BACK AND KIND OF WRAP UP THE NIGHT WITH A DISCUSSION ABOUT OUR TAX RATE AND, UH, SOME FINAL THOUGHTS.
UM, NOT THAT I HAVE TO OFFER THIS TO YOU, BUT OBVIOUSLY WE WANT THIS TO BE A DISCUSSION.
AND SO AT ANY POINT IN TIME, PLEASE, UH, STOP IF WE NEED TO PAUSE AND, AND, UH, UH, UM, HAVE A, A CHAT ABOUT A CERTAIN TOPIC OR AN ISSUE, OR YOU HAVE A QUESTION.
WE WANT IT TO BE VERY INTERACTIVE, UH, THROUGHOUT THE WHOLE EVENING.
UM, AND, UH, THEN WE'LL COME BACK AT THE VERY CONCLUSION AND TALK ABOUT WHAT DAY TWO LOOKS LIKE.
AS I MENTIONED TO YOU, THIS IS A VERY IMPORTANT FEW WEEKS IN OUR BUDGET PROCESS.
UM, OUR BUDGET PROCESS IS A YEAR LONG PROCESS.
HOWEVER, UH, MAY THROUGH JUNE WHEN, UH, YOU RECEIVE YOUR DEEP DIVES AND WE SHARE WITH THE PUBLIC, UH, THE, UH, INSIGHTS AND ALLOW THEM TO REALLY UNDERSTAND SOME OF OUR CHALLENGES AND OPPORTUNITIES, UH, BUILDS TO THIS TIME WHERE WE HAVE OUR WORKSHOP.
UM, UH, WE'LL ASK YOU TOMORROW NIGHT TO ACTUALLY CALL A HEARING, A PUBLIC HEARING ON THE, ON THE TAX RATE, AS WELL AS THE BUDGET.
UM, AND THEN, UH, I'LL FILE THE BUDGET, UH, UH, IN A COUPLE OF FRIDAYS AND, UH, PRESENT THAT FOLLOWING MONDAY, UM, UH, FOR THE, UH, PUBLIC CONSIDERATION, UM, AS I MENTIONED, THE GOALS THAT, UH, WE HAVE FOR TONIGHT IS REALLY WE WANNA LAY OUT, NOT ONLY, UH, LAY OUT THE STRATEGY FOR FY 26, BUT WE WANNA PROVIDE THE CONTEXT.
THE CONTEXT IS EXTREMELY IMPORTANT.
UH, IT CHANGES FROM YEAR TO YEAR.
UH, WHAT DOESN'T CHANGE THOUGH, UH, IS THE PRIORITY, UH, THE PRIORITY OF, UH, PUTTING PEOPLE FIRST, UH, WITHOUT OUR PEOPLE.
UM, NOTHING GETS ACCOMPLISHED THE WAY THAT WE ALL, UH, ENVISIONED AND, AND, AND A HIGH STANDARDS, UH, THAT WE HAVE FOR OUR ORGANIZATION, AND HOW THAT TRANSLATES TO THE HIGH STANDARDS THAT OF, OF SERVICES THAT WE PROVIDE TO THE COMMUNITY.
UH, SECONDLY, WE WANNA PROVIDE YOU, UH, THE CITY COUNCIL WITH AN OPPORTUNITY TO PROVIDE THAT FEEDBACK THAT I JUST, I DESCRIBED.
UH, WE WANT TO REALLY FOCUS, UH, THIS EVENING, UH, THIS EVENING AND TOMORROW ON THE FIVE BIG, UH, FUNDS.
UM, WE, AS WE ALWAYS DO, WE'LL COME BACK TO YOU, UH, AT A, AT A SUBSEQUENT TIME AFTER I FILE THE BUDGET, UM, WITH A, UH, BUDGET FOR ALL OF THE FUNDS.
UM, AND THAT'LL BE SUBMITTED WHEN I FILE THE BUDGET, AND WE'LL COVER THOSE, UM, WHEN I PRESENT THE BUDGET.
AND THEN FINALLY, UM, YOUR FEEDBACK TONIGHT IS INCREDIBLY IMPORTANT.
WHILE IT'S MY JOB TO BRING YOU A, A PLAN TONIGHT, A STRATEGY TONIGHT, IT'S ALSO OUR JOB TO LISTEN TO YOUR FEEDBACK AND TO REFINE THAT PLAN.
UH, SO WHILE TONIGHT I HAVE WHAT I BELIEVE TO BE AN ARTICULATE PLAN THAT ACCOMPLISHES, UH, MIS EMISSIONS AND OBJECTIVES THAT I THINK WE'RE HIGHLY ALIGNED ON, UM, YOUR FEEDBACK, UH, IS, IS STILL VERY IMPORTANT.
WE HAVE, UH, UH, FROM THIS POINT FORWARD, UM, ABOUT 10 DAYS BEFORE I FILE THE BUDGET.
AND THE FEEDBACK THAT WE GET THE NEXT TWO EVENINGS, UH, WILL GO A LONG WAY TOWARDS THAT.
[00:05:01]
FAMILIAR WITH THESE.I THINK THE POINT THAT I WANTED TO MAKE HERE IS, UM, AS WE, UH, JUST FOLLOWING UP ON YOUR, UH, GOAL SESSION, UM, A COUPLE OF SATURDAYS AGO, THERE WERE SEVERAL, UH, TACTICS THAT WE IDENTIFIED AS ONGOING.
THESE ARE THE THINGS THAT WE DO EACH AND EVERY BUDGET DEVELOPMENT CYCLE TO MAKE SURE THAT, UM, WE'RE BEING MINDFUL OF, UM, OUR STEWARDSHIP RESPONSIBILITY, BUT ALSO MINDFUL OF YOUR GOALS.
AND SO, UH, WE ALWAYS FEEL IT'S IMPORTANT TO ACKNOWLEDGE THOSE, UM, AS, AS WE BEGIN EACH YEAR, UM, AND EACH YEAR CAN BE, UH, VERY, VERY DIFFERENT IN TERMS OF THE CIRCUMSTANCES THAT WE'RE CONFRONTED WITH.
WE OFTEN, UM, SIT SET ASIDE AND, AND, AND REALLY TRY TO IDENTIFY WHAT ARE THE MAIN FACTORS, UH, THAT ARE GOING TO, THAT ARE GOING INTO THIS BUDGET DEVELOPMENT PROCESS.
UM, THIS YEAR, I'LL, I'LL TELL YOU, THEY, THEY REALLY COME DOWN TO THESE FIVE FACTORS.
UH, OFTENTIMES A BUDGET IS, UH, ONE OF TWO DRIVERS.
UH, YOU CAN EITHER HAVE A BUDGET THAT'S BUILT ON REVENUE DRIVERS, OR YOU CAN EITHER HAVE A BUDGET THAT'S BUILT ON EXPENDITURE DRIVERS.
UM, THIS BUDGET IS A REVENUE DRIVEN, UH, BUDGET.
UM, WE, UH, MANY OF THE THINGS THAT I'M PROPOSING TO YOU, AND MANY OF THE THINGS THAT, UM, QUITE FRANKLY, WE'RE, WE'RE BEING, UH, FORCED TO CHOOSE BETWEEN ARE, UH, BECAUSE OF LIMITED REVENUE.
AND WE'RE GONNA TAKE SOME TIME TONIGHT TO BE THOUGHTFUL AND EXPLAIN HOW WE FIND OURSELVES IN THE SITUATION THAT WE ARE, UH, THIS EVENING.
SO, UM, THE ECONOMIC INDICATORS, I WANNA SPEND A LITTLE TIME ON THE LEGISLATIVE IMPACTS ALWAYS IMPORTANT, UH, EVEN TODAY IN THE SPECIAL SESSION, UH, ADDITIONAL POTENTIAL IMPACTS THAT COULD REALLY, UM, INFLUENCE, UH, FUTURE BUDGETS.
UM, WE'LL LOOK AT THE REVENUE PROJECTIONS, UH, TAKE A LOOK AT OUR ECONOMIC OUTLOOK, AND THEN FOCUS ON SOME KEY, UH, AREAS HERE.
SO, IN TERMS OF THE ECONOMIC INDICATORS, THERE'S REALLY, UH, FOUR CATEGORIES WE WANT TO TALK ABOUT.
ONE IS, UM, UH, WHAT WE'VE TERMED GEOPOLITICAL RISK AND GLOBAL UNCERTAINTY.
SO, UH, NO SURPRISE TO ANYBODY HERE THAT THE, THE, THE DYNAMICS, UH, UH, GEOPOLITICAL DYNAMICS THAT WE'RE EXPERIENCING ARE INTRODUCING NEW RISK AND FORCING BUSINESSES TO MAKE, UH, UH, TO RETHINK THEIR, THEIR GLOBAL DECISIONS.
UM, IN A, A CITY LIKE RICHARDSON, WHERE WE HAVE 70 INTERNATIONAL BUSINESSES, UM, MOST OF THOSE, UH, ARE LAR, UH, ARE COMPRISE OUR, UH, OUR LARGEST BUSINESSES, UM, AND SOME OF OUR HIGHEST TAX, UH, PROPERTY TAX PAYERS AND SALES TAXPAYERS.
IT'S INCREDIBLY IMPORTANT TO UNDERSTAND THEIR STRATEGIES.
UM, THEY DEFINITELY HAVE A RIPPLE EFFECT HERE LOCALLY.
THESE, UH, CHANGES THAT ARE, WE'RE EXPERIENCING, UM, IMPACT, AS I MENTIONED, EVERYTHING FROM OUR TAX REVENUE TO OUR DEMANDS ON INFRASTRUCTURE, UH, AND OUR WORKFORCE DEVELOPMENT AS LEADERS.
I THINK IT'S OUR RESPONSIBILITY AND SOMETHING THAT OUR ECONOMIC DEVELOPMENT TEAM IS HIGHLY FOCUSED ON AND, AND REALLY REMAINING AGILE, UM, IN WORKING WITH OUR, UH, UH, BUSINESS TO HELP THEM NAVIGATE THE CHALLENGES THAT THEY HAVE, UH, AHEAD OF THEM.
UH, ONE OF THOSE CHALLENGES IS SUPPLY, UH, SUPPLY CHAIN DISRUPTIONS.
UM, IF YOU LOOK AT, UH, CONFLICTS IN THE MIDDLE EAST, FOR INSTANCE, OR EASTERN EUROPE, UH, TRADE RESTRICTIONS THAT ARE OUT THERE TODAY AND, AND, AND, UH, JUST RISING TENSIONS, THINGS, FOR INSTANCE, BETWEEN US AND CHINA.
ALL THESE THINGS SEEM VERY FAR AWAY, BUT THEY ALL HAVE VERY REAL LOCAL IMPACTS, UM, BECAUSE OF THE DYNAMIC, UH, BUSINESS, UH, ECOSYSTEM THAT WE HAVE.
UH, THEY DIS THEY DISRUPT, UH, SUPPLY CHAINS.
UM, BUSINESSES ARE THEREFORE, UM, ARE ENCOUNTERING INCREASED COST, EXTENDED LEAD TIMES AND CHALLENGES, UH, SOURCING CRITICAL MATERIALS, UH, PARTICULARLY IN SECTIONS LIKE MANUFACTURING AND TECHNOLOGY.
UM, BUT VERY, VERY IMPORTANTLY IN THE SEMICONDUCTOR MANUFACTURING, UM, REALM.
UM, UH, AS YOU KNOW, UM, THESE, UH, THESE, UH, UM, BUSINESSES ARE ESSENTIAL PART OF OUR ECONOMY, BUT MANUFACTURING IN GENERAL IS IMPORTANT.
WE HAVE OVER 450 BUSINESSES THAT ARE CLASSIFIED AS MANUFACTURING, UH, HERE, SOME OF OUR LARGEST EMPLOYERS, AS I MENTIONED, AND TAXPAYERS FALL WITHIN THIS CATEGORY.
UH, POLITICAL INSTABILITY, UM, CONTINUES TO BE A THEME WE HEAR FROM OUR BUSINESS LEADERS AND THE CHA, UH, THE CHANGE IN INTERNATIONAL POLICY DIRECTIONS THAT ARE FUELING, UH, KIND OF GLOBAL MARKET VOLATILITY, UM, THAT, THAT REALLY HAS A, UH, IMPACT ON THE DECISIONS THAT ARE MADE LOCALLY.
UH, COMPANIES ARE EXERCISING CAUTION, UM, ABOUT EXPANSION PLANS, THEIR CAPITAL INVESTMENTS, UH, AND, AND ENTRY INTO NEW INTERNATIONALS AND ENTRY INTO NEW INTERNATIONAL MARKETS.
UH, AGAIN, REAL LOCAL IMPACTS WHEN YOU THINK OF THINGS LIKE PROPERTY TAX AND SALES TAX THAT ARE ASSOCIATED WITH THESE BUSINESSES.
UM, UH, MANY, UH, UH, SANCTIONS AND DIPLOMATIC, UH, DISPUTES THAT ARE, THAT HAVE CAUSED SPIKES IN ENERGY PRICES AND, AND SHORTAGES IN KEY COMMODITIES, UH, HERE IN OUR OWN ORGANIZATION, UH, UH, OIL, GAS, UH, BUT IMP IMPORTANTLY FOR, UM, OUR BIGGEST AND MOST, UM, IMPACTFUL INDUSTRIES, UH, HERE, UM, IN, IN RICHARDSON, UH, EARTH MINERALS.
UH, AND IN PARTICULAR, AGAIN, NOT WITHOUT NAMING ANY IN PARTICULAR, UH, THE SEMICONDUCTOR MANUFACTURERS ARE BEING HEAVILY IMPACTED BY THIS, AND IT'S MAKING THEM HAVE TO, UM, UH, BE INNOVATIVE, MORE INNOVATIVE, UM, BUT IT ALSO IS, IS REALLY IMPACTING THEIR BOTTOM LINE, WHICH IMPACTS THEIR DECISIONS.
UH, ANOTHER KEY, UH, COMPONENT, UH, ARE TARIFFS, UH, ADVOCACY TARIFFS.
INTRODUCE, INTRODUCE BOTH DIRECT AND INDIRECT COSTS FOR BUSINESSES.
[00:10:01]
THEY OFTEN, UH, LEAD TO REDUCED PROFITABILITY, SLOWER GROWTH.UM, THESE BUSINESS IMPACTS HAVE THE POTENTIAL TO RIPPLE THROUGH OUR ECONOMY IN THE SENSE OF, UH, INFLUENCE IN OUR TAX REVENUES AND OUR ECONOMIC DEVELOPMENT PLANS.
UM, WE MUST FOCUS, UH, THEREFORE ON, ON DIVERSIFYING OUR ECONOMY LIKE WE HAVE, UH, THE PAST FEW YEARS IN ENGAGING, IMPORTANTLY, ENGAGING WITH THESE INDUSTRIES SO THAT WE CAN DO WHAT WE CAN TO HELP MITIGATE THEIR, THE, THE IMPACTS AND THESE EFFECTS.
UM, WHEN YOU LOOK AT MANUFACTURERS AND RETAILERS, UM, THEY'RE INCURRING HIGHER EXPENSES FOR IMPORTED COMPONENTS AND FINISHED PRODUCTS DUE TO THESE TARIFFS, UM, THAT IS HAVING THE IMPACT, UM, OF BEING.
AND OF COURSE, IT'S PASSED ALONG THROUGH THE SUPPLY CHAIN.
IT'S INCREASING CONSUMER PRICES.
IT'S SQUEEZING PROFIT MARGINS FOR BUSINESSES.
AND IT'S, UM, IT'S, UH, THAT'S OF COURSE NEITHER GOOD FOR, UM, UH, OUR SALES TAX GROWTH OR OUR CAPITAL INVESTMENT, UH, LOCALLY, UH, RICHARDSON.
COMPANIES THAT ARE HEAVILY DEPENDENT ON INTERNATIONAL MARKETS, UM, UM, ARE BECOMING LESS COMPETITIVE GLOBALLY BECAUSE OF THIS, UH, RETALIATORY TARIFFS AND OTHER GROWING COST OF, UH, CROSS-BORDER BUSINESS OPERATIONS, REDUCE THEIR EDGE, UH, IN THE MARKET AND THEIR PRICING SHARE WITH NEARLY, AS I MENTIONED, 70 INTERNATIONAL COMPANIES ACTIVE IN OUR LOCAL ECONOMY.
UH, THEIR COM, THEIR CONTINUED COMPETITIVENESS IS ESSENTIAL TO OUR, UM, ECONOMY'S HEALTH.
UM, TO AVOID THE NEGATIVE IMPACT, UH, IF THERE'S AN UPSIDE TO THIS, TO AVOID THE NEGATIVE IMPACT OF TARIFFS, BUSINESSES ARE RESHORING, UM, AND, UH, THEY ARE BRINGING PRODUCTS AND PRODUCTION BACK TO THE US.
UM, THESE STRATEGIC, UH, CHANGES IF LEVERAGE CAN, UH, INCREASE AND SIGNIFICANTLY ALTER OUR REGIONAL, UH, UH, ECONOMIC DYNAMICS, UH, UH, POTENTIALLY REVITALIZING OUR LABOR MARKET AND EVEN CERTAIN INDUSTRIES.
UH, BACK ON, UH, JULY 9TH, UM, OUR, OUR, OUR RICHARDSON ECONOMIC DEVELOPMENT DEPARTMENT HOSTED OUR TARIFFS ROUNDTABLE AT THE IQHQ.
UH, IN ADDITION TO THAT, WE HAD SEVERAL ONE-OFF MEETINGS WITH COMPANIES, UH, TO BETTER UNDERSTAND WHAT TARIFFS WERE DOING TO THEIR BUSINESS AND HOW THAT MIGHT TRANSLATE BOTH IN THE NEAR TERM AND IN THE MIDTERM TO, UH, WHAT THEIR, UH, BUSINESS MODELS WOULD LOOK LIKE HERE, AND HOW THAT WOULD TRANSLATE TO OUR REVENUE, UM, UH, PROJECTIONS AND, AND, AND OUTCOMES IN THE FUTURE.
UH, I'LL TELL YOU, THE GOOD NEWS IS THAT ALL OF THE PARTICIPATING COMPANIES FELT LIKE THEY COULD MANAGE THE TARIFFS.
UH, WHAT THEY WANTED IS SOME CERTAINTY AROUND WHAT THE TARIFFS WERE GOING TO BE.
UH, IT WAS THE UNCERTAINTY AROUND THE POLICY THAT WAS MUCH MORE PROBLEMATIC FOR THE COMPANIES THAN THE TARIFFS THEMSELVES.
UM, AND THE OTHER, UH, BIG, UH, I THINK POINT OUT OF THAT WAS, UM, THE, UM, THE WORKFORCE, UH, AND TALENT CONSIDERATIONS THAT THEY HAVE.
OBVIOUSLY, OUR US WORKFORCE CHALLENGES ARE, ARE DEEPLY IMPACTING BUSINESS OPERATIONS, UM, UH, AND, AND PRODUCTION, UH, AND, AND, AND ACTUALLY GROWTH, UH, LOCALLY.
THESE ISSUES AFFECT OUR, OUR, UH, OUR REVENUE STABILITY, OUR ABILITY TO SUPPORT AND, UH, SUSTAINABLE ECONOMIC DEVELOPMENT.
AND, UM, IT'S GONNA TAKE PROACTIVE INVESTMENT IN WORKFORCE DEVELOPMENT, AFFORDABLE HOUSING AND EMPLOYMENT MODELS THAT ARE FLEXIBLE TO ADDRESS THESE CONCERNS.
UH, MANY OF OUR INDUSTRIES, ESPECIALLY HEALTHCARE, MANUFACTURING, AND TECHNOLOGY, ARE STRUGGLING TO FILL OPEN POSITIONS.
UH, AND AS YOU'LL SEE LATER TONIGHT, LOCAL GOVERNMENTS ARE NOT IMMUNE TO THIS EITHER.
UM, CAUSES OF ARE VERY, UH, DIVERSE.
THEY INCLUDE THE AGING WORKFORCE, DECLINING LABOR FORCE PARTICIPATION, UH, MISMATCHES BETWEEN DRIVE REQUIREMENTS AND, AND WORKER SKILLS, UM, TO, TO ATTRACT THESE WORKERS, UH, THAT OUR BUSINESSES NEED, THE TALENT THEY NEED TO BE SUCCESSFUL.
THEY'RE HAVING TO, UH, INCREASE WAGES AND EXPAND BENEFITS.
A THEME THAT WE HERE IN OUR OWN ORGANIZATION HAVE BEEN CONFRONTED WITH FOR SEVERAL YEARS.
UH, SMALL AND MEDIUM SIZED BUSINESSES OFTEN FEEL THE MOST PRESSURE, UH, IN THIS REGARD, BECAUSE THEY DON'T HAVE THE FLEXIBILITY OF LARGE CORPORATIONS.
6,900 OUT OF OUR APPROXIMATELY 7,000 BUSINESSES ARE SMALL AND MEDIUM SIZED BUSINESSES.
AND SO, WHEN THEY HAVE WORKFORCE AND TALENT ISSUES LIKE WE'RE EXPERIENCING TODAY, THAT'S AN, IT'S A MEANINGFUL THING THAT WE SHOULD BE MINDFUL OF.
UM, THE OTHER BIG THING IS, I THINK THE MISMATCH AND SKILLS GAP.
EMPLOYERS ARE ALSO, UM, UM, UH, REGULARLY AND ROUTINELY REPORTING, UH, FINDING DIFFICULT OR DIFFICULT FINDING WORKERS WITH THE RIGHT SKILLS, ESPECIALLY IN TECH TRADES AND, AND HEALTHCARE.
ALL THREE OF THOSE ARE TARGET INDUSTRIES OF OURS.
UM, THE EFFECTS, UH, THIS OF COURSE, AFFECTS INNOVATION, COMPETITIVENESS, UM, IT CAN DRIVE UP RECRUITMENT COST AND, AND OVERALL MAKE THE, UM, MAKE THE BUSINESS MODEL MORE PROBLEMATIC.
UM, THIS WAS AN INTERESTING FACT THAT WAS SHARED TO ME AT, AT OUR TARIFFS, UM, UM, ROUND TABLE.
THERE ARE APPROXIMATELY 10,000 BABY BOOMERS THAT RETIRED DAILY IN THE UNITED STATES.
UM, A TREND THAT'S, THAT'S EXPECTED TO CONTINUE LEADING TO A LOSS OF EXPERIENCED WORKERS AND INSTITUTIONAL KNOWLEDGE, UM, THAT IS EXTREMELY IMPORTANT.
AND AS WE'VE TALKED ABOUT, WE'RE EXCEEDING THAT HERE IN OUR OWN ORGANIZATION.
AND THE NUMBERS I'M GONNA SHOW YOU IN A LITTLE BIT, UM, ABOUT WHAT WE EXPERIENCED THIS LAST YEAR.
UM, IT, IT SEEMS EVEN MORE EXASPERATED, UM, NOTWITHSTANDING BIG OR SMALL TALENT IS THE NUMBER ONE TOPIC
[00:15:01]
BUSINESSES WANNA DISCUSS, UH, WITH US WHEN WE MEET, DOESN'T MATTER THE FORUM.UM, AS SUCH, I WANNA LET YOU KNOW THAT THE, THE, THE CITY, THE RICHARDSON ECONOMIC DEVELOPMENT DEPARTMENT, WE'RE GONNA BE, UH, ASSUMING A MUCH, UH, MORE ACTIVE ROLE IN WORKFORCE DEVELOPMENT.
UH, INITIALLY THIS WAS ENVISIONED TO BE A PRIMARY FUNCTION OF THE CHAMBER AND THE, UH, STRATEGY THAT WE ROLLED OUT BACK IN, UH, 20 20, 20 22, THAT TOOK EFFECT ON OCTOBER 21.
UM, YOU'LL SEE LATER, UH, THAT WE'RE PROPOSING TO TWEAK, IF YOU WILL, UH, OUR FUNDING TO THE CHAMBER.
UM, WE'VE TAKEN OVER SOME PROGRAMS ALREADY, LIKE BROKER DEVELOPER GROWTH AND MOBILITY, AND WE BELIEVE THAT, UM, IT'S TIME AND, AND IT'D BE PRUDENT GIVEN WHAT WE HEAR FROM OUR BUSINESSES TO START BECOMING MORE ACTIVE IN, IN THE REALM OF WORKFORCE DEVELOPMENT.
AND SO, UM, IMPORTANT, IMPORTANT CHANGES.
SO ALL OF THIS TO SAY, WHAT DO WE REALLY NEED TO BE MINDFUL OF AS WE ENTER INTO THIS BUDGET? UM, I THINK, UM, THREE, UH, THREE OR FOUR THINGS.
FIRST, UM, THERE IS ECONOMIC, ECONOMIC UNCERTAINTY.
AND IT, IT IS GOING TO RESULT IN REVENUE FLUCTUATIONS.
UH, WE'VE DONE IT BEFORE, AND WE'VE DONE IT, QUITE FRANKLY, IN MUCH MORE DIFFICULT SITUATIONS BACK IN 20, UH, END OF 2001, INTO 2002, AND 2008 THROUGH 2011.
UM, THERE'S NO DOUBT THAT THE ELEVATED PRICES THAT ARE DAMPENING BOTH CONSUMER AND BUSINESS SPENDING IS LEADING TO, UM, LOWER OR LOWERING, UH, UH, SALES TAX.
AND YOU'LL SEE THAT WE'VE TAKEN THAT INTO CONSIDERATION WHEN PROJECTING SALES TAX FOR THIS COMING YEAR.
UM, WE ARE SEEING PRIVATE SECTOR DELAYS AND CANCELLATIONS OF PLANNED INVESTMENT, UH, UM, AND PROJECTS THAT ARE BEING REDUCED IN SCOPE, UM, POTENTIALLY, UH, LOWERING OUR PROPERTY TAX COLLECTIONS.
UM, AS COMPANIES ADAPT TO SUPPLY CHAIN OR, OR RELOCATE OPERATIONS DOMESTICALLY, IE RESHORING, UM, WE ARE ALREADY SEEING A CHANGE IN REQUESTS FOR SUPPORT.
WE'RE SEEING, UH, MORE, UH, BUSINESSES ASK FOR INCENTIVES.
WE'RE SEEING THEM ASK US TO INVEST IN INFRASTRUCTURE UPGRADES TO TAKE SOME OF THAT PRODUCTION AND MANUFACTURING BACK ON ONTO US SOIL.
AND, UH, THEY'RE ASKING US TO PROVIDE, UH, UH, FUNDING FOR WORKFORCE DEVELOPMENT AND TRAINING PROGRAMS. UM, AS YOU SEE THE FEDERAL AND STATE POLICY PRIORITIES CHANGE, UM, UM, THEY OFTEN RESULT IN, UM, A REALLOCATION OF FUNDS, UH, OR, OR, UM, TO FOCUS ON PARTICULAR AREAS SUCH AS, SUCH AS THINGS LIKE CRITICAL INFRASTRUCTURE, UH, NATIONAL DEFENSE, TRADE, AND EXPORT.
WE NEED TO BE POISED TO LEVERAGE THIS.
WE'RE BLESSED TO HAVE MANY OF THESE INDUSTRIES AND MANY OF THESE, UH, MANY COMPANIES THAT CAN TAKE ADVANTAGE OF THIS, UM, RETHINKING, UH, FEDERAL POLICY.
AND, UH, I THINK A, A, UH, COLLINS AEROSPACE ANNOUNCEMENT, UH, JUST TWO WEEKS AGO IS A PRIME EXAMPLE OF THAT.
IT'S A $57 MILLION CAPITAL INVESTMENT THAT WOULD NOT HAVE OCCURRED ABSENT THE US, UM, UH, SUPPORT THE UNITED STATES GOVERNMENT SUPPORT FOR THAT PROJECT.
UM, AND THEN LASTLY, UH, LOOKING AT OUR OWN CAPITAL PROJECTS, UM, YOU KNOW, WE'RE NOT IMMUNE TO, TO THE IMPACT OF TARIFFS, UH, THAT TARIFFS HAVE ON CONSTRUCTION MATERIALS AND, AND INFLATED COSTS.
UM, OUR CAPITAL PROJECTS BUDGETS ARE, ARE UNDER STRAIN, THERE'S NO DOUBT ABOUT IT.
THEY HAVE LED TO SCALED BACK, UH, PROJECTS AND VALUE ENGINEERING, WHICH IS A TERM I REALLY DISLIKE.
UM, AND WE HAVE TO BE REALLY MINDFUL OF THE IMPACT THAT IT'S GONNA HAVE ON OUR NEXT BOND PROGRAM.
HOW MUCH LESS WILL WE GET DONE FOR THE SAME AMOUNT OF FUNDS, ESSENTIALLY? AND WHAT WILL THAT LOOK LIKE MOVING FORWARD AS WE PREPARE TO CONTINUE WITH OUR INFRASTRUCTURE INVESTMENT? UM, BUT IT'S NOT JUST, UM, IT'S NOT JUST FACTORS ON THE NATIONAL AND INTERNATIONAL LEVEL, RIGHT HERE IN OUR OWN STATE, WE'RE BEING IMPACTED IN A SIGNIFICANT WAY BY WHAT THE LEGISLATURE, UM, AS HAS BEEN WORKING ON.
UH, WE SHARED WITH YOU PREVIOUSLY SB TWO, I'M SORRY, SB 9 24, UH, WHICH ELIMINATES THE FRANCHISE FEES ON STREAMING SERVICES.
UH, THIS YEAR IN FY 26, YOU'LL SEE, UH, AN INITIAL ESTIMATE OF AN IMPACT OF A NEGATIVE $260,000 TO THE GENERAL FUND, BECAUSE WE'RE NO LONGER ALLOWED TO, UH, CHARGE THE FRANCHISE FEE ON STREAMING SERVICES BY NEXT YEAR.
WHEN WE COME BACK IN FFY 27 AT THIS TO, TO TALK TO YOU ABOUT FY 27 BUDGET, THAT'LL ACTUALLY BE SOMEWHERE AROUND $450,000 BECAUSE WE'LL SEE THE FULL IMPACT.
THAT'S, UH, $450,000 LESS OF REVENUE.
UM, UH, KIND OF, UH, PARTNER THAT OR, OR, OR, UH, CONSIDER IN CONJUNCTION WITH, UH, HB NINE.
AND OF COURSE, THIS STILL HAS TO BE APPROVED BY THE VOTERS IN NOVEMBER, WHICH IT SEEMS LIKE A NO BRAINER, WHICH ESTABLISHES $125,000 BPP EXEMPTION ON ALL ACCOUNTS.
UH, THAT WILL REDUCE OUR, OUR, UM, REVENUE BY ABOUT $1.5 MILLION OR $900,000 TO THE GENERAL FUND.
SO RIGHT THERE ALONE, NEXT YEAR, WE'LL BE TAKING A STEP BACK, UM, OF ABOUT ONE, UH, $1.1 MILLION COMPARED TO THIS YEAR.
UM, WAY MORE CONCERNING, UH, TO BE, TO BE FRANK, IS, UH, WHAT'S BEEN PROPOSED IN THE SPECIAL SESSION, WHICH IS SB NINE, WHICH IS, UM, PROPOSING TO REDUCE THE PROPERTY TAX CAP TO 2.5% FROM 3.5%.
[00:20:01]
UM, THAT WOULD, UM, CURRENTLY, THAT WOULD, UH, ESTIMATE IT, THAT WOULD CAUSE, UH, COST US AN ADDITIONAL $750,000 NEXT YEAR.SO, AGAIN, IF THIS GOES THROUGH AND YOU CAN, AND YOU PARTNER IT WITH THE OTHERS, THAT'S ABOUT $1.8 MILLION THAT IN THIS LEGISLATIVE SESSION ALONE, THREE BILLS ARE GONNA COST US IN REVENUE, UM, WITH NO CONSIDERATION FOR PUBLIC SAFETY EXEMPTIONS, NO CONSIDERATION FOR INFRASTRUCTURE, UH, CAR VIOLENCES.
NO, NO, NO CONSIDERATION FOR ANY OF THE CORE MISSIONS THAT WE'RE SUPPOSED TO BE ABOUT.
AS, AS A LOCAL, UH, GOVERNMENT, UM, I WILL LET YOU IN THE COMMUNITY KNOW WE HAVE EXPRESSED, UM, OUR OPPOSITION, UH, TO, TO OUR DELEGATION, AND WE'RE ACTIVELY WORKING TO SUPPORT THE EFFORTS OF OUR PARTNERS, UM, UM, OTHER CITIES, COUNTIES, UM, AND, AND THE TEXAS MUNICIPAL LEAGUE TO OPPOSE THIS, UH, LEGISLATION AS WELL.
UM, LET'S TALK A LITTLE BIT NOW ABOUT OUR GENERAL FUND, UH, REVENUE SITUATION.
IN LIGHT OF THESE, UH, THESE CONSIDERATIONS.
UM, RIGHT NOW, UM, OUR GENERAL FUND REVENUE, UM, UH, SITS AT ABOUT $181 MILLION.
UH, RECALL NOW THAT 80, ALMOST 84% OF OUR GENERAL FUND REVENUE IS, UH, FROM PROPERTY TAXES, ABOUT 42% THERE.
FRANCHISE FEES, ABOUT 11% IN BUSINESS TAXES.
WHAT I'D LIKE TO DO IS JUST TAKE YOU THROUGH, UH, A NUMBER OF SLIDES THAT DELVE INTO THESE, UH, UM, DIFFERENT SECTORS A LITTLE BIT MORE.
SO, FIRST, LEMME DRAW YOUR ATTENTION TO THE BOTTOM OF THE SLIDE HERE.
SO, UM, RIGHT NOW WHERE, WHERE WE STAND, WE ARE LOOKING AT ABOUT $578,000, UH, MORE YEAR OVER YEAR IN PROPERTY, IN, UH, IN, UH, REVENUES THAT ARE PROJECTED, UH, FOR, UH, FY 26.
UM, IF YOU LOOK AT THE FIRST LINE WHERE THE BLUE ARROWS POINTED, THAT'S, UH, ABOUT A $900,000 DROP, UM, IN REVENUE FROM PROPERTY TAXES.
NOW, UM, WE HAVE TALKED ABOUT THESE BEFORE, BUT I FEEL LIKE IT'S IMPORTANT, UM, TO MENTION THEM, UH, AS, UH, THE COMMUNITY.
MAY ANYONE IN THE COMMUNITY MAY BE, UM, TRACKING THIS FOR THE FIRST TIME, AND BECAUSE I WANNA DRAW SOME COMPARISONS.
UH, BUT AGAIN, NORTHSIDE AT UT DALLAS BACK IN AUGUST OF 24, UM, THE COLLIN, UH, COLLIN COUNTY APPRAISAL REVIEW BOARD APPROVED A HUNDRED PERCENT PROPERTY TAX EXEMPTION FOR THE RESIDENTIAL PORTION OF THE DEVELOPMENT, WHICH IS THE OVERWHELMING PORTION OF THE DEVELOPMENT.
UM, THIS DECISION WAS BASED ON SOME NEW CASE LAW THAT WAS, UH, THAT CAME OUT OF A CASE DOWN IN COLLEGE STATION FOR A SIMILAR PUBLIC-PRIVATE PARTNERSHIP, UH, WHERE THEY ARGUED THAT THEY WERE ESSENTIALLY A QUASI UNIVERSITY USE OR AN EXTENSION OF THE UNIVERSITY, UH, THAT EXEMPTION, UM, UH, THIS YEAR AND FY 26 IS COSTING THE CITY ABOUT $2 MILLION, 1.2 MILLION OF THAT, UH, TO THE GENERAL FUND.
NOW, WE DID NEGOTIATE, UH, IF YOU WILL, A SMALL ONE-TIME PAYMENT.
UM, BUT THAT IS, UH, THAT WAS A PRIOR YEAR AND, AND HAS SINCE, UH, BEEN, UH, NO LONGER IN IN CONSIDERATION.
AND SO THIS IS A, THIS IS A SUBSTANTIAL HIT, UH, THE TEXAS INSTRUMENTS, UH, OUR FAB, UM, UH, ISSUE THAT WE BROUGHT TO YOUR ATTENTION.
THE, UH, CA, UH, CERTIFIED OUR TAX RULE LAST YEAR, WITHOUT INCLUDING A SIGNIFICANT ABATEMENT FOR TI, IT WAS VALUED AT ABOUT $790 MILLION.
UM, OBVIOUSLY, UM, THAT WAS VERY QUICKLY IDENTIFIED.
UH, ONCE TI AND THE DISTRICT GOT TOGETHER, TI UH, THE DISTRICT, UH, THE APPRAISAL DISTRICT, UH, ISSUED A SUPPLEMENTAL ROLE, WHICH REDUCED TO THAT COLLECTION IN FY 25, AS WE DISCUSSED PREVIOUSLY.
UH, NOW FULLY EXPERIENCING THAT IN FY 26, UH, THAT'S COSTING THE CITY $3.2 MILLION OR $1.9 MILLION TO THE GENERAL FUND.
NOW, THIS, THIS EXEMPTION, UH, WAS NOT UNEXPECTED.
THIS EXEMPTION WAS APPROVED BACK IN 2019, UH, AND IS A BIG PART WHY, OF WHY WE HAVE, UM, YOU KNOW, NEARLY A, UH, EIGHT, EIGHT AND A HALF BILLION DOLLARS, UM, INVESTMENT THERE ON RENNER ROAD.
HOWEVER, UH, IT, IT DID TAKE US BY SURPRISE, UH, LESSON LEARNED.
UM, AND, UH, TODD AND HIS TEAM HAVE DONE A TREMENDOUS JOB OF, UH, REVIEWING, UM, THE, UH, CCA INFORMATION.
UM, UM, AND DUE TO THE ABATEMENT ISSUE THAT WE EXPERIENCED LAST YEAR, UH, AS I MENTIONED, THEY'VE MADE A CONCERTED EFFORT TO WORK WITH CCA TO BETTER UNDERSTAND, UH, EVERY ACCOUNT.
UM, IN JUNE OF THIS YEAR, UM, CA AND, AND TODD AND HIS TEAM TIED OFF, THEY MATCHED UP THE NUMBER OF ABATEMENT ACCOUNTS AND EVERYTHING WE THOUGHT WAS RECONCILED.
UM, HOWEVER, UM, WHEN TODD RECEIVED THE CERT CERTIFIED TAX ROLL ON JULY 24TH, HE AND HIS TEAM QUICKLY FOUND THAT TWO ACCOUNTS WERE NOT RECEIVING THE CORRECT ABATEMENT.
AGAIN, UM, THAT WAS A 75% ABATEMENT.
UH, AGAIN, IN ACCORDANCE WITH THE AGREEMENT THAT WAS SIGNED BACK IN 19.
THE ERROR WAS THAT FOR SOME REASON, A FREE PORT EXEMPTION WAS LISTED ON TWO OF THE ACCOUNTS.
UM, UH, BUT WE DO NOT, THE CITY DOES NOT OFFER A FREE PORT EXEMPTION.
UM, CCAD WAS UNABLE TO, UM, IMMEDIATELY RESEARCH THE ACCOUNTS.
UM, I, I GUESS THERE'S A PRACTICE, ONCE THEY ISSUED A CERTIFIED ROLE, THEY KIND OF CLOSE, UH, THEIR SYSTEM SO THAT, UM, THAT CERTIFICATION ISSUANCE PROCESS CAN KIND OF RUN ITS COURSE.
UM, ANYWAY, LONG STORY SHORT, UM, ONCE THEY OPENED THE SYSTEM BACK UP
[00:25:01]
AND TODD WAS ABLE TO, TO WORK WITH THEM, UM, THEY DID, UH, CK DID ACKNOWLEDGE AND CONFIRM THAT THE FREEPORT EXEMPTION WAS APPLIED TO THE TWO ACCOUNTS IN ERROR.UM, AND, UM, AND THAT, UM, THAT THEY WOULD, UM, HAVE TO ESSENTIALLY THAT THEY WOULD HAVE TO, UM, RECTIFY THAT ERA THROUGH A SUPPLEMENTAL TAX ROLE.
WE REQUESTED THAT THEY REISSUE AND RECERTIFY THE TAX ROLE.
UH, THEY, THAT IS NOT ALLOWED UNDER STATE LAW.
THEY, THEY, THEY MUST, UH, ADDRESS THIS ISSUE THROUGH A SUPPLEMENTAL ROLE, EXCUSE ME.
UM, AND SO THAT'S KIND OF THE POSITION WE FIND OURSELVES IN NOW.
NOW, UM, TO C AD'S CREDIT, UH, AFTER VISITING WITH TODD, YOU CAN SEE THAT LAST BULLET THERE.
THEY STATED THAT, UM, IN ALL FUTURE YEARS, THEY'LL PROVIDE THE FULL ABATEMENT LISTING AND AMOUNTS ABATED, UH, TO CITY STAFF TO REVIEW IN ADVANCE OF, UH, LOCKING DOWN THEIR SYSTEM, UM, UM, FOR THE CERTIFICATION PROCESS.
SO THAT SHOULD HELP US IN THE FUTURE.
THE BOTTOM LINE TODAY IS, IF YOU KIND OF LOOK AT THE TOP CHART THERE, YOU'LL SEE, UH, THAT THE, UM, MISTAKE THAT WAS MADE, UH, THE TOTAL TAX LEVY DECREASE FROM CERTIFIED THIS YEAR THAT WE'RE ACCOUNTING FOR IS $622,000.
372,000 OF THAT, OF THOSE DOLLARS ARE IN THE GENERAL FUND.
THE REMAINDER OF THE $250,000 IS ON THE, UH, DEBT SERVICE.
AND SO, UM, WHAT YOU'LL SEE FOR THE FIRST TIME IN, IN YOUR FUND SUMMARY THAT'S PROVIDED FOR YOU IN, IN YOUR BOOK HERE, IS UNDER THE GENERAL FUND, YOU'LL ACTUALLY SEE A NEW LINE UNDER PROPERTY TAXES THAT ACTUALLY ACCOUNTS FOR, UM, THE, UM, THE MISTAKE AND, AND THE CORRECTION THAT WAS MADE.
UM, SO IT'S, UH, PAGE, UM, UH, PAGE FOUR, UH, UH, OF YOUR FUND SUMMARIES.
YOU'LL SEE THERE, UH, A NEW LINE CALLED CURRENT TAXES ADJUSTED FOR CERTIFICATION AREA, AND YOU'LL SEE A NEGATIVE $372,000.
SO WE KNOW THAT THAT ADJUSTMENT IS COMING, AND WE'RE COUNTING FOR THAT AND RESERVING THOSE DOLLARS, UH, FOR, FOR THAT PURPOSE.
UM, SO LET'S, UH, SO THAT GETS US TO THE POINT THAT WE ARE TODAY.
YOU'LL SEE HERE THAT OUR, UH, CURRENT TAXES OF, UH, $77 MILLION OR $850,000, UM, BELOW FY 25, UH, THAT'S A 1.43, UH, DECREASE IN, IN VALUE GROWTH FROM FY 25, UM, A AND WE WILL TALK A LITTLE BIT ABOUT WHAT THAT LOOKS LIKE, IF YOU CAN CONTROL FOR BOTH NORTHSIDE AND AND TI.
UM, AND I MENTIONED THE $372,000 THERE.
UH, THE 430,000, I'M SORRY, THE $53,000, UH, DECREASE, UM, FROM FY 25 AND, AND PRIOR TAXES IS BASED ON, UH, UH, CURRENT TRENDS.
UM, UH, IN TERMS OF, UM, THE, UH, PROPERTIES THAT ARE, UM, DISPUTING, UM, THEIR, UH, VALUES THROUGH LAWSUITS, UM, ASSUMES THAT CONTINUED, UH, IMPACT OF LESS THAN WHAT WE CALL LESS THAN FAVORABLE OUTCOMES ON THESE LAWSUITS.
AND THAT'S BEEN A TREND THAT WE'VE SEEN.
UH, AND THEN THE FINAL CATEGORY UNDER PROPERTY TAXES IS THE PENALTIES AND INTEREST.
AND THAT'S JUST A SIMPLE, BASED ON A, A FIVE YEAR AVERAGE OF $269,000 THERE.
AND THAT GIVES YOU THE $76.9 MILLION, UH, TOTAL.
AGAIN, $897,000 FROM FY, UH, 25.
SO LET ME JUST TAKE A SECOND HERE AND DO A LITTLE BIT OF A, OF A DEEP DIVE HERE.
THIS IS A EXTREMELY, UM, RARE SITUATION WHERE WE WOULD HAVE ONE, IF NOT TWO YEARS BACK TO BACK WHERE WE HAD, UM, UM, IMPACTS BECAUSE OF MISTAKES FROM THE APPRAISAL DISTRICT.
OKAY? AND SO IT'S NOT AS, IT'S NOT AS EASY THIS YEAR JUST TO MAKE COMPARISONS OF CERTIFIED TO CERTIFIED, OR EVEN LOOKING BACK TO LAST YEAR, MAKING A COMPARISON OF CERTIFIED TO, UH, UH, UM, CERTIFIED PRIOR YEAR.
AND SO WHAT WE'VE DONE FOR YOU ON THIS CHART, BECAUSE WE REALLY WANT TO GIVE YOU AND THE COMMUNITY A SENSE OF THE DIRECTION THAT WE'RE REALLY HEADING HERE, IS, UM, IF YOU, IF YOU CONTROL FOR, UM, THE NORTHSIDE EXEMPTION, UH, AND THE TI ABATEMENTS, UM, THE CERTIFIED VALUES FOR FY 26 WOULD ACTUALLY BE UP 2.35%.
SO HAD THEY BEEN APPLIED ACCURATELY, UM, IN FY 25, AND THEN AGAIN THE TWO, THE TWO BPP ACCOUNTS AND FY 26, WE WOULD ACTUALLY BE UP 2.35%, NOT DOWN THE ONE POINT, UH, FOUR, 3%.
AND SO I THINK IT'S A REALLY IMPORTANT, UH, POINT BECAUSE IT CAN BE A VERY, IT'S A VERY CONFUSING AND VERY COMPLICATED, UM, SITUATION TO TRY TO DRAW COMPARISONS YEAR OVER YEAR RIGHT NOW.
UM, AND YOU REALLY HAVE TO ISOLATE AND CONTROL FOR THESE, UM, WHAT I WOULD CALL ABNORMALITIES IN THE WAY THAT THESE TWO CERTIFIED ROLES WERE PREPARED AND, AND REPORTED.
UM, LET ME, LET ME STOP THERE.
ANY, ANY QUESTIONS ON PROPERTY TAX BEFORE WE GO? GOOD, THANK YOU.
UM, NEXT BIG CATEGORY OBVIOUSLY IS OUR, OUR FRANCHISE FEES OF, UM, AND YOU CAN SEE THEY'RE SLIGHTLY UP ABOUT $300,000.
UM, YOU CAN SEE THERE, ELECTRIC FRANCHISE FEES UP ABOUT 102 TELEPHONE, UH, UH, FEES UP ABOUT 1767 FOR GAS TWO, UH, 85 NEGATIVE FOR CABLE.
THAT'S THE IMPACT OF THE NEW STATE LEGISLATION.
AND THEN THE WATER AND SEWER, UM, UH, FRANCHISE FEES UP 3 76.
[00:30:01]
ON THE 5% OF SALES AND SERVICE FEES, UH, FOR WATER AND, UH, WASTEWATER TO USE OUR RIGHTS OF WAYS.THAT'S A, A BEST PRACTICE THAT IS, UH, EMPLOYED, THAT'S GETTING OUT TO SALES TAX.
THE OTHER, UH, VERY LARGE, UH, COMPONENT OF OUR REVENUE YOU SEE THERE UP 1.7, UH, MILLION DOLLARS.
UM, UH, HERE THE BUDGET, UH, IS, UH, IS AT 50 54 $0.2 MILLION.
UM, NOW I'LL SHOW YOU A, A CHART IN JUST A SECOND.
SO MAYBE FACT, I'LL TOGGLE THERE AND THEN TOGGLE BACK.
YOU CAN SEE THAT $54.2 MILLION IS LESS THAN THE FY 25 ESTIMATED, UH, UM, UH, FINISHING POINT FOR SALES TAX OF $55.90, $55.9 MILLION.
UH, IT'S A, IT'S A, IF YOU TAKE IT BACK TO FY 24, IT'S ALMOST THAT EXACT LEVEL THAT WE'RE AT THERE.
AND SO WHAT BOB HAS DONE, HE IS DONE A GREAT JOB OF GOING THROUGH, UM, AS WE'VE ALWAYS SHARED, UM, YOU KNOW, WE ARE VERY CONSERVATIVE WITH SALES TAX.
YOU CANNOT BALANCE YOUR BUDGET ON SALES TAX FOR THE VERY REASON THAT THE PRO THAT THE CHART THAT I JUST SHOWED YOU DEMONSTRATES.
UM, WE'VE, UH, BOB HAS ADJUSTED FOR ONE TIME SPIKES IN OUR FY 25 COLLECTION.
SO AS WE'VE SEEN LARGE, UH, INCREASES OR, OR, UH, DOWNTURNS, WE'VE ADJUSTED FOR THOSE.
UM, WE HAVE ADJUSTED A 1% DECLINE, UM, OF IT FACTORS IN THAT 1% DECLINE.
ONCE THOSE ADJUSTMENTS HAVE BEEN MADE FOR THE REASONS THAT I DESCRIBED TO YOU PREVIOUSLY, UM, WE JUST DON'T KNOW.
WE'D RATHER ERROR ON THE SIDE OF CAUTION AND THEN HAVE A EXCESS SALES TAX TO, TO MANAGE THAN, UH, ADOPT A BUDGET AND FALL SHORT ON SALES TAX.
AGAIN, RECALL, IT WAS JUST ONE YEAR AGO THAT WE WERE REALLY, UM, COMING TO YOU AND, AND HAVING TO COME UP WITH A MID-YEAR PLAN, UH, TO DEAL WITH A, A PRETTY SIGNIFICANT SHORTAGE IN SALES TAX.
AND WE DON'T WANNA BE THERE AGAIN.
SO THE SALES TAX IS 3.3% ABOVE FY 25 BUDGET.
UH, BUT AGAIN, A 3.2%, UM, 3.1% DECREASE FROM FY UH, 25 YEAR END ESTIMATE MIXED, UH, BEVERAGE TAX IS, UH, 70, UH, $743,000.
THAT'S A DECREASE OF ABOUT $13,000.
AND AGAIN, THESE ARE ALL BASED ON, UH, AT LEAST FIVE YEAR TRENDS.
AND THEN THE BINGO TAX, UM, IS AT ABOUT $69,000.
AND AGAIN, BASED ON CURRENT TRENDS, UH, SHOWED YOU THE CHART, KIND OF SHOWING YOU WHERE WE SIT HERE FROM A SALES STACK STANDPOINT.
UH, THE LAST, UH, UH, CATEGORY HERE IS, UM, UH, SEVERAL, UM, SEVERAL DIFFERENT, UH, REVENUE SOURCES ALL, UH, RELATIVELY INSIGNIFICANT, UH, COMPARED TO THE FIRST, UH, THREE THAT WE, UH, TALKED ABOUT, UH, LICENSE AND PERMIT.
THERE'S AN INCREASE OF ABOUT $147,000.
UH, AND YOU'LL SEE ON A FOLLOWING CHART WHERE A LOT OF THAT, UM, UM, INCREASE IS PREDICTED TO, UH, COME FROM, UH, FINES AND FORFEITURES ARE, ARE, ARE DECREASED BY ABOUT $114,000.
UH, THAT'S CORRESPONDING TO, UH, CURRENT ACTIVITY LEVELS.
UM, AND THAT'S, UM, UM, THAT'S ACROSS THE ENTIRE CITY.
SO THAT'S NOT ONE DEPARTMENT THAT'S ACROSS THE ENTIRE CITY.
UM, UH, UH, G AND A CHARGES ARE, UH, BASED ON OUR MOST RECENT UPDATE TO OUR COST ALLOCATION PLAN.
AND, UH, BOB, I BELIEVE WE'RE GONNA, UH, BE UPDATING THAT PROBABLY NEXT YEAR.
SO THIS IS THE LAST YEAR OF THAT COST ALLOCATION PLAN, BUT, UH, STILL, UH, RINGS TRUE, UH, INTEREST, UH, DOWN THREE QUARTERS OF A MILLION DOLLARS.
UH, AND THAT'S JUST SIMPLY A BYPRODUCT OF, UH, PROJECTING, UM, YOU KNOW, THE FED, UH, FED'S BEEN LOOKING AT CUTTING THE RATES FOR SOME TIME NOW.
UH, IF THEY DO THAT, UH, AS WELL AS, UM, HAVING SOME LOWER BALANCES, UH, WE WILL, WILL, UH, BE, BE IMPACTED IN A, IN A FAIRLY SIGNIFICANT WAY THERE.
AND THEN, UH, UH, PARKS AND REC OR RECREATION LEISURE, UH, LEISURE, UM, UM, ENDS UP BY $29,000.
UH, AND THAT INCLUDES ABOUT $87,000 IN FEES THAT BOB IS GONNA SHARE WITH YOU.
UM, AS I HAND OFF IN JUST A SECOND, OTHER REVENUES, UM, UM, WE'RE LOOKING AT OTHER, OTHER REVENUES BEING DOWN ABOUT $334,000.
UM, THIS IS, UH, RELATED TO, UH, A REDUCTION IN REVENUES FROM AMBULANCE SERVICES AND 9 1 1 SERVICE FEES.
UM, UH, CHIEF WAS JUST, UH, CHIEF UBE WAS JUST EXPLAINING TO ME EARLIER TODAY, UH, THAT THEIR TRANSPORT RATE IS DOWN.
UM, UM, CHIEF, YOU SAID IT WAS DOWN ABOUT TO ABOUT 65% OR SO.
WE'RE DOWN TO, WE'RE DOWN TO 63%, WHICH IS ABOUT 10% LOWER THAN, THAN WHERE I THINK IT NEEDS TO BE.
YEAH, IT'S JUST A POINT IN TIME RIGHT NOW.
UM, AND, UH, THEN THE LA THIS LAST BULLET HERE, THE ADDISON JAIL CONTRACT, I'LL COME BACK TO THAT JUST A SECOND TO, TO TALK MORE ABOUT THAT.
UH, BUT, UH, UM, COUNCILMAN JUSTICE, DO YOU HAVE A QUESTION ON THIS ONE? YEAH, I, YEAH, I DID.
JUST ON PROPERTY TAX AND SALES TAX, CAN YOU TALK A LITTLE BIT ABOUT, IS THIS A RICHARDSON PROBLEM OR IS IT A REGIONAL PROBLEM? YEAH, THAT'S A GREAT QUESTION.
NO, IT'S DEFINITELY, WELL, I'D, I'D SAY IN MANY REGARDS, IT'S A, IT'S A STATE PROBLEM.
UM, YOU'RE SEEING, UM, UH, THE PROPERTY TAXES STARTING TO, UH, LEVEL OUT, UM, REALLY ACROSS NORTH TEXAS FOR SURE.
I MEAN, THE HOUSING MARKET, THERE WAS, UH, JUST A NUMBER OF STORIES IN THE LAST COUPLE OF WEEKS ABOUT HOW THE HOUSING MARKET HAS SLOWED DOWN.
UM, IN JUST A SECOND, WE'RE GONNA COVER SOME REALLY INTERESTING SLIDES ABOUT COMMERCIAL, UH, PROPERTY AND THE DIFFERENT SECTORS
[00:35:01]
IN THE COMMERCIAL REALM, AND TALK ABOUT WHAT I THINK IS, UH, WHAT I THINK AND IS GOING ON THERE AND WHAT WE CAN EXPECT.UM, BUT THIS IS DEFINITELY NOT UNIQUE, UM, UH, TO RICHARDSON, UH, ON THE SALES TAX SIDE, I WOULD SAY THE SAME THING.
UM, YOU KNOW, THERE HAVE BEEN THIS, THIS, UH, SUMMER, THERE HAVE BEEN DOZENS OF, UH, ARTICLES, UH, ABOUT CITIES ALL ACROSS TEXAS EXPERIENCING, UH, VERY SIMILAR DYNAMICS.
UM, YOU KNOW, AND IT, AND IT'S NOT JUST A COOLING OF THE REVENUE, IT'S, IT'S THE, IT'S THE CONSISTENT AND STEADY RISING OF COSTS THAT ARE, ARE COMPOUNDING THE COOLING OF THE REVENUE.
BUT, UM, BOB, I DON'T KNOW IF YOU WANNA ADD ANYTHING IN TERMS OF PROPERTY TAX OR SHE TAX, BUT I THINK IT'S, WE ARE NOT UNIQUE IN THIS REGARD AT ALL.
I THINK IT'S IMPORTANT FOR FOLKS TO KNOW, UM, SB NINE.
UH, HAVE WE SENT JUST PURELY OUR OPPOSITION, OR ARE WE SUGGESTING, UH, ALTERNATIVES OR CARVE OUTS AS YOU'VE TALKED ABOUT BEFORE? YOU KNOW, I, I WOULD HATE TO JUST SAY WE WE'RE OPPOSED TO THIS AND NOT TRY AND FIX IT IN SOME WAY, BECAUSE I'M ASSUMING THAT WE'RE OPPOSED IS GONNA FALL.
UH, SHORT OF, OF MOVING THE NEEDLE AT ALL.
YOU KNOW, WHEN, WHEN SB TWO WAS FIRST BEING CONSIDERED, UM, WE WERE EX THE CITY OF RICHARDSON, AND, UH, UH, AT THAT TIME IT WAS, IT WAS ME WHO WAS, UH, FORTUNATE TO BE KIND OF INVOLVED IN TRYING TO LEAD THE EFFORT.
UM, WE WERE, UM, STEADFAST THAT A PUBLIC SAFETY CARVE OUT OR AN EXEMPTION, UM, WAS CRITICAL.
UM, AS WE'RE GONNA SEE SHORTLY, UM, YOU KNOW, EVERYTHING IS COSTING MORE YEAR OVER YEAR, UH, BUT THAT TENDS TO BE MORE TRUE AND, AND MORE SIGNIFICANT IN THE PUBLIC SAFETY REALM.
UM, WE FEEL STRONGLY THAT IF, IF, UH, A, UH, PROPERTY TAX CAP REDUCTION OCCURRED FROM THREE POINT A HALF TO 2%, UM, THAT A, UH, PUBLIC SAFETY EXEMPTION IS, IS CRITICAL.
I, UM, I REALLY STRUGGLE TO SEE A PATH FORWARD, UM, WHERE, UM, WE JUST LIVE ON TWO POINT A HALF PERCENT.
UM, JUST TO GIVE YOU AN IDEA, YOU KNOW, THAT'S ABOUT $1.8 MILLION OF NEW REVENUE YEAR OVER YEAR, UM, UM, FOR, FOR THE ENTIRE CITY, UM, FROM, FROM THE PROPERTY TAX SOURCE.
AND SO, UM, YOU KNOW, IF WE COULD GET, UM, AND WHICH I THINK OUR COMMUNITY WOULD HIGHLY SUPPORT CARVING OUT THINGS LIKE PUBLIC SAFETY OR INFRASTRUCTURE, IF WE COULD ISOLATE THOSE THINGS AND HAVE THOSE, UH, CONSIDERED INDEPENDENT OF THE CAP, THAT WOULD BE EXTREMELY HELPFUL AND WOULD ALLOW US TO, YOU KNOW, CONTINUE TO DELIVER ON AND, AND, AND PROVIDE THE, OUR CORE RESPONSIBILITIES IN THE EXCEPTIONAL WAY THAT WE DO TODAY.
SO IS THAT SOMETHING WE'VE COMMUNICATED TO BEN COURT OR TO OUR LEG? YEAH.
GARY, WHY DON'T YOU TALK ABOUT THE LETTER THAT WAS SHOT OFF.
UM, ACTUALLY, THAT PUBLIC SAFETY EXEMPTION HAS BEEN COMMUNICATED IN WRITING TO OUR RICHARDSON DELEGATION.
WHAT ARE YOUR FEELINGS ON WHETHER WE'RE GONNA MAKE ANY HEADWAY THERE? I'M NOT VERY OPTIMISTIC.
UM, REFLECTING BACK TO 2019, SAME, SAME SCENARIO.
THROUGH THE APPROACH THAT THEY TOOK IN 2019, I DON'T SEE MUCH CHANGE OR DIFFERENCE IN THEIR PERSPECTIVE, UH, THIS TIME AROUND.
AND WHAT'S THE RATIONALE? I MEAN, YOU KNOW, CUT IT FROM SOMEWHERE ELSE ACROSS THE BOARD, CUT, LET, LET'S GET RID OF PARKS, OR WHO NEEDS A LIBRARY, OR, I MEAN, IS THAT THE ATTITUDE? THAT IS RELATIVELY, UM, THAT IS A VERY FORCEFUL AND STRONG POSITION COMING OUT OF THE SENATE AND, UH, COMING OUT, COMING FROM THE AUTHOR OF THE BILL, UM, WHICH IS SENATOR BETON COURT.
JUST FOR MY EDUCATION, HOW WOULD A CARVE OUT FOR A SPECIFIC LINE ITEM IN THE GENERAL BUDGET WORK WITH AN OVERALL CAP? YEAH.
OR HOW DOES THAT, HOW DOES THAT PLAY OUT ON A SPREADSHEET? RIGHT.
SO, UM, I, I DON'T KNOW THAT, AND I'LL TURN OVER, ASK KEN OR BOB, BUT THE, THE IDEA IS ESSENTIALLY THAT YOU WOULD ISOLATE, UM, THE COST ASSOCIATED WITH PROVIDING POLICE SERVICE, FIRE SERVICES, AND EMERGENCY MANAGEMENT, FOR INSTANCE.
YOU WOULD ISOLATE THOSE AND THOSE COULD GROW.
WE PROPOSED BACK IN, UH, WAS IT 2019, I GUESS, UH, BACK IN 2019, WE PROPOSED THAT THERE'D BE THE EIGHT, THE, THE CAP THAT WAS IN PLACE AT THAT TIME WAS 8%.
WE PROPOSED THAT THE 8% CAP, UM, BE APPLIED TO PUBLIC SAFETY.
THERE WAS SOME TALK AROUND INFRASTRUCTURE, BUT WE FIGURED PUBLIC SAFETY WAS A PLACE TO, TO KIND OF REALLY TRY TO FOCUS OUR EFFORTS.
SO YOU WOULD, YOUR PUBLIC SAFETY GROWTH WOULD BE CAPPED AT 8%, WHEREAS ALL OF YOUR OTHER GROWTH WOULD BE CAPPED AT THE THREE POINT HALF PERCENT AT THAT POINT IN TIME.
AND SO, I DON'T, I DON'T KNOW IF WE, IF WE'VE THOUGHT THROUGH WHETHER YOU WOULD ISOLATE THAT INTO ALL, YOU KNOW, PUBLIC SAFETY COST INTO A, INTO A DIFFERENT FUND OR, I, I DON'T KNOW IF WE'VE, UH, EVER REALLY GIVEN MUCH CONSIDERATION TO HOW WE WOULD HANDLE THE ACCOUNTING OF THAT, BUT THE IDEA WAS TO ALLOW PUBLIC SAFETY TO GROW AND UP TO AN 8% INCREASE A YEAR WHERE, AND ISOLATE THAT, AND THEN HAVE ALL YOUR OTHER GENERAL FUND, UH, COST GROWING AT UP TO THREE AND A HALF PERCENT PER YEAR.
BUT I, I DON'T, BOB DO, I DON'T KNOW IF WE'VE THOUGHT THROUGH THE ACCOUNTING PIECE OF IT.
I THINK THE WAY, MY GUESS IS THE WAY IT WOULD PROBABLY WORK IS OUR, IN OUR TRUTH AND TAXATION
[00:40:01]
CALCULATION, WE WOULD PROBABLY, THAT WOULD GET FACTORED INTO HOW WE CALCULATE IT THERE.I DON'T THINK WE WOULD NEED TO SET UP A SEPARATE FUND OR ANYTHING LIKE THAT.
MAYOR HUTCHIN RIDER, DON, I WOULD JUST LIKE TO AGAIN SAY THAT AS SOON AS WE FINISH THIS YEAR'S BUDGET AND GET EVERYTHING LOCKED DOWN, HOPEFULLY THE SPECIAL SESSIONS WILL BE OPEN.
AND I REALLY WANT TO REQUEST THAT WE BRING IN OUR STATE REPS AND, YOU KNOW, IF WE JUST GO OVER SEVERAL OF THESE KEY PAGES AND SHOW THEM WHAT, WHAT IS OCCURRING TO US SO THEY FULLY UNDERSTAND.
BECAUSE I THINK, I THINK SOMETIMES, YOU KNOW, AND, AND I DON'T MEAN PLEASE DON'T TAKE THIS IN A NEGATIVE, WHEN WE SEND A LETTER, WHEN WE DO DIFFERENT THINGS, IT'S NOT NEARLY AS IMPACTFUL AS TO GET THEM IN THIS ROOM, SHOW THEM WHAT WE'RE LOOKING AT, SHOW THEM WHERE THE SHORTFALLS ARE, AND SHOW THEM EXACTLY.
SORT OF TO COUNCIL WOMAN'S JUSTICE POINT OF, WELL, YOU WANT US TO CUT LIBRARY, YOU WANT US TO CUT? I FORGET WHAT ELSE YOU SAID, BUT ANYWAY, OTHER SERVICES.
HOW DO YOU WANT US TO MAKE THIS UP AND, AND REALLY GET 'EM IN THE ROOM AND NAIL THEM DOWN? BECAUSE I THINK, I THINK THAT'S THE ONLY WAY WE'RE GONNA POTENTIALLY, AND EVEN THAT'S PROBABLY SLIGHT TO GET THROUGH THEIR HEAD TO MAKE THEM UNDERSTAND WHAT WE'RE HAVING TO DEAL WITH.
SO IF WE COULD GET THAT SCHEDULED JUST IN SOME WAY, SHAPE, OR FORM, I'D REALLY APPRECIATE IT.
IN, IN LIEU OF THAT, I, I WOULD EVEN BE IN FAVOR OF A RICHARDSON TODAY, KIND OF FOCUS ON ITEM BY ITEM AND WHERE OUR, OUR, UH, LEGISLATORS VOTED ON EACH OF THESE ITEMS AND, AND WHAT THAT COST THE CITY.
UM, I IT'S, IT'S PROBABLY NOT THE RIGHT TIME YET, BUT, UM, YOU'VE OBVIOUSLY HIT A FEW KIND OF HIGH POINTS AND YOU'VE BROUGHT IN LEGISLATION AND SOME OF THE DIFFERENT ISSUES THERE.
HOW MUCH MODELING HAVE WE DONE SO FAR ON THIS? LET'S ASSUME WE STILL HAVE THREE POINT A HALF PERCENT.
UM, HOW MUCH MODELING HAVE WE DONE AS IT RELATES TO, OBVIOUSLY WE SAW, UH, CHIEF BU'S, UM, YOU KNOW, SUGGESTIONS OF, UH, SOME OF THE DIFFERENT GROWTH WE'RE GONNA HAVE TO HAVE JUST IN NEW PERSONNEL OR ADDED, ADDED COSTS THERE.
HOW MUCH OF THE MODELING HAVE WE DONE THUS FAR THAT SAYS, HEY, THIS IS WHAT, WHAT'S EVEN POSSIBLE AT 3.5%? RIGHT.
WELL, UM, OVER 10, I GUESS OVER 10 YEARS, SURE.
I KNOW THERE'S A BIG CHUNK COMING IN 10, SO RIGHT.
THERE IS WELL, AND, AND YOU KNOW, AND, AND MAYOR, THAT'S JUST ONE TRACK.
AND WE'VE GOT AQUATICS, WE'VE GOT RECREATION OF, AND SO, UM, THE, THE MODELING, IT COMES BACK TO THE FACT THAT, UM, IF WE GROW, UM, THE MAXIMUM ALLOWED, NOT NEW DEVELOPMENT, BUT IF WE GROW OUR EXISTING TAX BASE, THE MAXIMUM ALLOWED, WE KNOW FOR THE FORESEEABLE FUTURE, WE'RE GONNA ESSENTIALLY, UH, BE THE RECIPIENT OF AROUND 2.4 TO 2.6 MILLION NEW DOLLARS EVERY YEAR.
AND SO, UM, YOU KNOW, TO BRING ON, FOR INSTANCE, A NEW FIRE STATION WITH, YOU KNOW, CURTIS, IT WAS 15 OR 21 FIREFIGHTERS, ONE OR TWO THINGS IS GONNA HAVE TO HAPPEN.
UM, LIKE OTHER COMMUNITIES HAVE DONE, UH, YOU KNOW, THE COUNCIL IS GONNA HAVE TO CONSIDER, UM, UM, EITHER NOT REDUCING THE TAX RATE, UM, TO THE REQUIRED LEVEL THAT WOULD BE, UM, APPROPRIATE UNDER, UH, THE TRUTH IN TAXATION CALCULATION OR EVEN RAISING THE TAX RATE BECAUSE YOU SIMPLY CAN'T ACCOUNT FOR THE INCREASE IN COST ASSOCIATED WITH PROVIDING THE SERVICES THAT WE PROVIDE TO TODAY, UH, IN RETAINING THE, THE PEOPLE THAT PROVIDE THOSE SERVICES AND PROGRAMS AND BRING ON A, IT DOESN'T MATTER WHETHER IT'S A REC CENTER, IT DOESN'T MATTER WHETHER IT'S A NEW AQUATIC CENTER, UM, IT DOESN'T MATTER, YOU KNOW, AN AUDITORIUM OR A FIRE STATION.
IT, IT JUST, THERE'S NO MATH THAT WORKS.
UM, NOW THE GOOD NEWS IS, IS ON, ON THE DEAD SIDE, KENT AND TODD AND THE WHOLE TEAM HAVE DONE SUCH A GREAT JOB FOR YEARS NOW OF MANAGING THE DEBT.
WE HAVE THE CAPACITY AND IT'S STRUCTURED PROPERLY TO DO THAT.
SO THE, THE RIDDLE WOULD BE THE OPERATIONS PIECE AND WHERE DO WE GO? UM, OTHER CITIES LIKE MESQUITE, THEY HAD TO BRING ON A FIRE STATION.
THEY, THEY HAD THE CAPITAL, THEY HAD TO GO TO THE VOTERS AND MAKE IT A VALUE PROPOSITION TO THE VOTERS AND SAY, WE NEED A FIRE STATION IN THIS AREA.
HERE'S EXACTLY WHAT IT'S GONNA COST TO ACTIVATE THAT FIRE STATION FROM AN OPERATION STANDPOINT.
HERE'S EXACTLY WHAT WE HAVE TO INCREASE THE TAX RATE BY.
AND IF WE DON'T DO THAT, THEN WE CAN'T ACT ACTIVATE THE FIRE STATION.
THOSE ARE, THOSE ARE REALLY THE KINDS OF, I THINK, DECISIONS THAT YOU AS A COUNCIL AND FUTURE COUNCILS ARE GONNA HAVE TO MAKE AS WE, UH, AS WE SEEK TO EXPAND THE CORE SERVICES THAT WE PROVIDE.
BUT THERE, THERE IS NO SCENARIO, UM, UNDER WHICH WE KEEP UP, AT LEAST TODAY, IN WHICH WE KEEP UP WITH INFLATIONARY PRESSURES, PROVIDE MODEST, UM, YOU KNOW, COST OF LIVING TYPE OF, UH, UH, COMPENSATION INCREASES TO STAFF AND BRING ON NEW, NEW SERVICES LIKE THAT FOR CLARIFICATION.
PROBABLY JUST MY CLARIFICATION, UM, BUT YOU MENTIONED NEW DEVELOPMENT MM-HMM
HAVING SOME SORT OF A EXCEPTION THERE.
SO NEW DEVELOPMENT DOES NOT ADD TO, OR DOES NOT, IS NOT INCLUDED IN THE 3.5.
AND THAT'S WHY, UH, UH, YEAH, ABSOLUTELY.
MAYOR, AND THAT'S WHY THAT'S SO IMPORTANT.
THAT'S WHY THE REDEVELOPMENT AND THE NEW DEVELOPMENT IS SUCH A CRITICAL PIECE IN THE STORY OF, UH, BEING ABLE TO CONTINUE, UH, TO PROVIDE THE SERVICES AND EVEN EXPAND THOSE SERVICES THAT IT'S GONNA BE, IT'S REALLY GONNA BE ON THE BACK OF NEW, OF NEW DEVELOPMENT.
ON THE REDEVELOPMENT, JUST TO PUT A FINE POINT ON IT FOR MYSELF,
[00:45:01]
UM, HOW MUCH, WHAT DEFINES REDEVELOPMENT IN THAT SITUATION? JUST AGAIN, SO I UNDERSTAND SURE.IS THAT IT'S NOT PUTTING LIPSTICK ON THE, ON THE BUILDING, I SUPPOSE WHAT, YEAH, WHAT, RIGHT.
IT'S, WHAT IS THAT GUIDELINE? UM, FOR, FOR THE PURPOSES, UH, IN CAN OR BOB OR, OR TODD, WHOEVER, UH, CHECK ME ON THIS, BUT MY UNDERSTANDING IT'S, YOU KNOW, IT'S ESSENTIALLY RAISING THE BUILDING, FOR INSTANCE.
AND, YOU KNOW, CONSTRUCTING A NEW, YOU KNOW, MAYBE, SO IT'S SIGNIFICANT.
YOU ACQUIRE, YOU KNOW, YOU ASSEMBLE THREE OR FOUR PIECES OF PROPERTY, TAKE DOWN SOME OLD ONES, YOU KNOW, BUILD A NEW BUILDING.
THAT'S, BUT IF YOU'RE DOING A, YOU KNOW, IF IT'S A 10 TO FINISH OUT OR A FACADE IMPROVEMENT OR EVEN EXPANSIONS, UM, I DON'T THINK CAN, I DON'T THINK EXPANSIONS ARE NEW OR NEW CONSTRUCTION UNDER THAT.
NOT UNLESS IT WOULD BE, YOU KNOW, KIND OF AN ATTACHMENT OR SEPARATE, YOU KNOW, ESSENTIALLY ANY NEW CONSTRUCTION.
SO THE SEARS REDEVELOPMENT? MM-HMM.
UNLESS IT WAS ENOUGH WHERE YOU COULD MAKE THAT CASE.
WELL, I WOULD SAY NO, ONLY BECAUSE THE FOOTPRINT REMAINS THE SAME.
YOU KNOW, AND THEY'RE ESSENTIALLY JUST DIVIDING THE BUILDING.
NO, I THINK YOU'RE PROBABLY CORRECT ON THAT.
WE JUST HEARD FROM CHIEF, UH, VY WAS THAT LAST WEEK OR TWO WEEKS AGO? UM, AND I KNOW THERE WAS TALKS ABOUT THE 10 YEAR MARK VERSUS SOMETHING SHORTER.
I'M ASSUMING THAT WAS PART OF THE STRATEGY BEHIND THAT.
IT'S, UH, YOU KIND OF SLOWLY RAMP UP TO THAT.
SO THAT'S NOT JUST ONE CHI GIANT CHUNK AT A TIME.
UM, THE 88TH LEGISLATURE A COUPLE YEARS AGO, UH, PASSED THE BILL THAT, UM, THAT LIMITED LOCAL GOVERNMENT'S ABILITY KIND OF PLAY WITH, I KNOW IT WAS AROUND, 'CAUSE THERE WAS TALKS AROUND DEFUNDING POLICE AND SOME OF THAT.
UM, AND I FORGET WHAT THE, WHAT BILL THAT WAS CHIEF, I KNOW YOU'RE SURE, YOU KNOW, BUT DOES IT, BUT DOES THAT, YOU KNOW WHAT I'M TALKING ABOUT, DOES THAT AFFECT FIRE AS WELL OR IS THAT JUST TARGETED TOWARDS POLICE? SO YOU, MY RECOLLECTION IS THAT POLICE ONLY, YEAH, THAT'S POLICE ONLY.
AND, AND, AND, UH, COUNCILMAN BARRIOS, WE, WE DID TALK ABOUT THAT AND, AND, UM, I WANNA, UM, I THINK MAYBE WHOEVER CAN OR CHIEF IS THAT JUST, UH, JURISDICTIONS OR, OR MUNICIPALITIES THAT ARE 250,000 AND ABOVE? THERE IS A THRESHOLD AND I DO NOT RECALL THAT THRESHOLD.
SO COUNCILMAN BARRIOS, I OWED YOU THAT ANSWER, I APOLOGIZE.
BUT MY, UH, I ASKED THE GUYS TO DO SOME RESEARCH AND WE OKAY.
WE'RE PRETTY SURE IT'S 2, 2 15 AND ABOVE.
YEAH, IT WAS HOUSE BILL 1900, I BELIEVE.
YEAH, THAT SOUNDS ABOUT RIGHT.
BACK IN THE 87TH LEGISLATURE AND IT WAS, WAS, YEAH.
POPULATION OF 250,000 AND ABOVE IS WHAT IT APPLIED TO.
UH, WELL I LOOKED OVER AT CHIEF VY, I DIDN'T SEE HIS FACE MOVE, SO I ASSUME HE, IT DID APPLY TO HIM OR HE WOULD'VE KNOWN THAT SO
SO, UM, THAT'S OUR REVENUE STORY.
SO WHERE ARE WE HEADED? THIS IS AS IMPORTANT AS ANY SECTION IN TERMS OF THE THINKING AROUND THIS BUDGET DEVELOPMENT.
THIS IS EXTREMELY IMPORTANT, UH, SECTION TO, TO TALK TO.
SO ONE THING THAT IT'S REALLY IMPORTANT TO ACKNOWLEDGE IS THAT THE REVENUE, UH, THE REVENUE IMPACTS THAT WE ARE EXPERIENCING THIS YEAR ARE, ARE, ARE REALLY BEYOND OUR CONTROL.
RIGHT? WE DIDN'T CREATE THE CASE LAW AND WE DIDN'T MAKE THE MISTAKE.
UM, BUT THE SILVER LINING IS THAT THESE ARE ONE YEAR RESETS.
UH, NEXT YEAR WHEN WE BEGIN, WE MAY BE TAKING A STEP BACKWARDS BECAUSE OF BPP LEGISLATION AND WE MAY BE TAKING A STEP BACKWARDS, HOPEFULLY NOT BECAUSE THE NEW PROPERTY TAX CAP, BUT THESE TWO SITUATIONS ARE NOT GONNA IMPACT US.
WE RESET, WE, WE DEAL WITH THIS AND THEN WE MOVE ON WITH RESPECT TO THESE TWO, UM, WE ARE, UH, MAYOR, TO YOUR POINT AND, AND TO OTHERS, WE ARE ALREADY FACTORING IN THE IMPACTS OF THE NEW LEGISLATION.
UM, AND WE WILL HAVE A, AN ARTICULATE PLAN WAY BEFORE THIS TIME NEXT YEAR IF, UH, ADDITIONAL LEGISLATION IS PASSED IN THE SPECIAL SESSION OR A FOLLOW UP SPECIAL SESSION, UM, THAT NEGATIVELY IMPACTS US.
UM, NOTWITHSTANDING THE REALITY IS, IS BOTH THE GEOPOLITICAL AND THE ECONOMIC FACTORS THAT WE TALKED ABOUT EARLIER, UM, DO HAVE THE POTENTIAL TO CONTINUE TO, UH, IMPACT OUR REVENUE.
YOU KNOW, MAYBE NOT EVEN DECREASING REVENUE, BUT IT'S THE UNCERTAINTY AROUND HOW QUICKLY AND HOW MUCH IT WILL GROW OR THAT IT FLUCTUATES EVEN YEAR TO YEAR THAT COULD CREATE PROBLEMS FOR US.
UM, YOU KNOW, WE BELIEVE STRONGLY AS, AS THESE DYNAMICS UNFOLD, IT'S GONNA BE CRITICAL FOR US, UM, TO REMAIN FIRST AND FOREMOST DISCIPLINED IN EXECUTING OUR CORE RESPONSIBILITIES.
UM, IN 2002 AND 2008, UM, WE HAD, UH, MORE DIFFICULT SITUATIONS THAN WE WERE IN TODAY.
UM, THE LESSON LEARNED COMING OUTTA BOTH OF THOSE IS THAT WE CANNOT SOLVE THIS BY, UH, COMPROMISING OUR APPROACH TO PEOPLE AND OUR OTHER CORE RESPONSIBILITIES.
OTHER THINGS, UH, UM, CAN BE SACRIFICED AND CAN BE TWEAKED AND CAN BE ADJUSTED.
AND WE CAN COME BACK TO THOSE.
THE COMMUNITY EXPECTS US TO REMAIN TRUE TO THESE CORE MISSIONS.
WE ALSO NEED TO STAY VERY ATTUNED TO THE EVOLVING MARKETS, UM, AND THE CONDITIONS.
AND WE NEED TO ENSURE THAT OUR STRATEGIC, UH, DECISIONS
[00:50:01]
REFLECT BOTH THE CURRENT REALITIES AS WELL AS YOUR LONG-TERM GOALS FOR THE COMMUNITY.UM, I FEEL VERY STRONGLY ABOUT THAT, THAT BY REMAINING TO THESE, UH, CORE MISSIONS, WE ARE WELL POSITIONED FOR A SPEEDY RETURN TO GROWTH.
AND I'M GONNA SHARE SOME, SOME DATA WITH YOU.
'CAUSE I KNOW EVERYONE ON THIS COUNCIL APPRECIATES DATA.
I'M GONNA SHARE THE DATA WITH YOU THAT DEMONSTRATES THAT RETURN TO GROWTH IS IMMINENT.
UM, AND, AND TO NOBODY'S SURPRISE, I MEAN, WE'RE IN ONE OF THE BEST MODE.
WE'RE PROBABLY IN THE MOST POWERFUL AND ROBUST METROPLEXES IN THE WORLD.
ALL OF THESE SUB-BULLETS HERE ARE TRUE OF RICHARDSON AND ARE TRUE OF THIS, THIS NOR TEXAS ECONOMY.
UM, NOTWITHSTANDING THAT WE'RE NOT IN THIS STRONG POSITION BY ACCIDENT, UM, IT'S YOUR SUPPORT OVER THE YEARS THAT HAVE ALLOWED US TO TAKE VERY PROACTIVE MEASURES THAT ALIGN WITH MARKET TRENDS.
WE HAVE FOSTERED STRATEGIC RELATIONSHIPS WITH DEVELOP WITH THE DEVELOPMENT COMMUNITY THAT PAY BIG DIVIDENDS.
AND WE CONTINUE TO COMMUNICATE A CLEAR VISION THAT'S, UH, ROOTED IN OUR REALITIES OF TODAY IN TERMS OF REAL ESTATE AND ECONOMIC DEVELOPMENT.
UM, I'M NOT GONNA GO OVER THIS WITH YOU, BUT I WANT TO POINT OUT A COUPLE OF THINGS.
THIS IS OUR ECONOMIC DEVELOPMENT STRATEGIC PLAN EVERY SINGLE DAY.
THIS GUIDES WHAT WE ARE DOING ON AN ECONOMIC DEVELOPMENT FRONT, AND IT'S RESULTED IN WHAT I'M GONNA SHARE WITH YOU IN A SECOND.
UM, WE WE'RE STRIVING FOR A DIVERSE AND RESILIENT ECONOMY.
WE WANNA PROMOTE GROWTH THROUGH STRATEGIC INFRASTRUCTURE PROJECTS.
SO THE THINGS THAT WE DO TO TEE UP REDEVELOPMENT ARE AS IMPORTANT AS THE INCENTIVES THAT WE GIVE.
UM, WE, UM, HAVE TO MAKE SURE THAT WE CONTINUE TO BE A, A PLACE OF, UH, A QUALITY OF LIFE AND, AND, AND CREATE PLACES THAT'S WHERE TALENT WANTS TO BE.
IF THE TALENT COMES AND WANTS TO BE HERE, THE COMPANIES WILL FOLLOW.
UM, AND WE ARE, UM, UH, UH, COMMITTED TO AN INNOVATIVE AND, AND, AND TECHNOLOGY ORIENTED, UM, UH, ECOSYSTEM FOR BUSINESSES.
YOU SEE OUR TARGET INDUSTRIES, AGAIN, AS WE ARE OUT RECRUITING.
UM, THE NEXT, UH, BIG ANNOUNCEMENT, THE NEXT BIG AT AND T, THE NEXT BIG, UM, UM, UM, GEICO FOR, UH, PROFESSIONAL SERVICES THAT WHATEVER, UH, THE, THE NEXT BIG COLLINS AEROSPACE.
THESE ARE THE PRINCIPLES THAT GUIDE US.
WE'VE ALSO, I IMPLEMENTED VERY, I BELIEVE, VERY EFFECTIVE OFFICE AND RETAIL, UH, STRATEGIES.
I WON'T BORE YOU WITH THESE, BUT YOU KNOW THAT THE THREE PIECES TO THE OFFICE STRATEGY IS TO REINVENT OUR OUTDATED OFFICE SPACES.
WE'RE VERY PROUD THAT IN JUST ABOUT 24 MONTHS, WE'VE HAD FIVE BUILDINGS, FIVE OFFICE BUILDINGS, WHICH WILL NE, WHICH WOULD'VE NEVER HAVE COMPETED IN THIS MARKET AGAIN AND GOTTEN A DECENT LEASE RENT.
UM, ALL FIVE OF THOSE BUILDINGS HAVE, HAVE BEEN PURCHASED AND ARE EITHER ARE OR ARE GONNA BE TORN DOWN, AND SOMETHING MUCH, MUCH MORE VALUABLE IS GONNA BE PUT IN THOSE IN THEIR PLACE.
UM, WE'VE IN REINVESTED IN STRATEGIC OFFICE BUILDINGS, THE, THE, THE BUILDING MODERNIZATION GRANT THAT WE DID AT THE GALLATIN COMMONS BUILDING IS PROBABLY THE BIGGEST RETURN ON AN INVESTMENT THAT I CAN EVER IMAGINE.
THAT 800,000 SQUARE FEET NOW IS 100% LEAST THAT IS, HASN'T BEEN THAT WAY IN PROBABLY A DECADE AND A HALF.
AND THAT WAS ALL BECAUSE WE HELPED THEM SET THE TONE BY DOING THE IMPROVEMENTS TO THE MAIN LOBBY BY IMPROVING THEIR, UH, THEIR GYM AND THEIR WORKOUT FACILITIES AND PROVIDING A CONTEMPORARY PLACE FOR PEOPLE TO EAT.
AND THEN OF COURSE, WE TALKED OVER AND OVER ABOUT REDUCING, UH, THE TENANT IMPROVEMENT GAP ON THE REAL, ON THE RESIDENTIAL, I'M SORRY, ON THE RETAIL SIDE.
UM, WE FOCUSED ON FINDING LOCAL OWNERS, NOT REITS, BUT LOCAL OWNERS WHO WANT TO TAKE PRIDE AND BE PART OF THE COMMUNITY HEIGHTS SHOPPING CENTER, PO UH, PROMENADE NORTH SHOPPING CENTER.
UM, WELL, THE, YOU KNOW, UM, OH, GOSH, I'M BLANKING ON THE OTHER ONE.
UM, UM, YES, UH, HEIGHTS SHOPPING CENTER, ALL LOCAL OWNERS NOW WHO HAVE PURCHASED FROM A REIT AND WHO HAVE STARTED TO INVEST SIGNIFICANTLY IN THOSE, UH, IN THOSE CENTERS AND HAVE REALLY, UM, HAD VERY SUCCESSFUL RETEN PROGRAMS. AND WE WORK WITH THEM, OF COURSE, ON BUILDING AND FACADE IMPROVEMENTS, AS WELL AS THEIR, UM, THEIR, UM, SITE IMPROVEMENTS AS WELL.
LET ME ASK YOU ANSWER A QUESTION BEFORE WE MOVE ON.
SO I WANTED TO ASK ABOUT, YOU KNOW, LOOKING AT THE OUTLOOK.
I WAS READING AN ARTICLE THIS MORNING IN THE DALLAS BUSINESS JOURNAL, AND THEY WERE TALKING ABOUT HOW A LOT OF THESE OLDER OFFICE BUILDINGS HAVE BEEN CONVERTED TO INDUSTRIAL AND SOME OF THAT KIND OF SPACE.
AND I KNOW WE'VE HAD A FEW OF THE ZONING CASES, AND EARLIER WHEN YOU WERE TALKING ABOUT REVENUE, UM, YOU JUST, YOU KNOW, KIND OF SOME OF THE THING THAT'S HAPPENING IN THE FEDERAL LEVEL HAS AFFECTED SOME OF THE OUTGOING SALES AND THAT, SO IT'S AFFECTED OUR REVENUE.
SO I, I'M STRUGGLING TO KIND OF BALANCE THAT IS HOW DO WE, FROM AN ECONOMIC PERSPECTIVE, OBVIOUSLY WE GET A REVENUE INCREASE BECAUSE OF THE VALUE OF THE LAND AND THE BUILDING ITSELF, BUT THEN FOR BUILDING MORE AND MORE INDUSTRIAL, BUT IT'S NOT SELLING AS MUCH BECAUSE OF NATIONAL THINGS HAPPENING.
I MEAN, WHERE'S THE BALANCE THERE? IT'S LIKE, ARE WE BUILDING INDUSTRIAL, BUT THEN WE'RE STRUGGLING TO SELL AND FILL? NO, NOT AT ALL.
I, THAT, THAT MAY BE, UM, YOU KNOW, I DON'T KNOW IF DFW IS IS AN EXCEPTION TO THAT, BUT, UM, RIGHT NOW, UM, INDUSTRIAL IS THE MOST SOUGHT AFTER
[00:55:01]
USE AND IS ACHIEVING SOME OF THE HIGHEST RENTS.SOME INDUSTRIAL RENTS ARE HIGHER PER SQUARE FOOT THAN OFFICE RENTS.
UM, PARTICULARLY IN NON-CLASS A, UH, BUILDINGS.
AND SO, UM, S AND THAT, I'M NOT SURE, THAT MAY BE A MORE OF A, YOU KNOW, THAT MAY BE TRUE IN DIFFERENT PARTS OF THE UNITED STATES, BUT HERE IN HERE IN NORTH TEXAS, UH, INDUSTRIAL IS EXTREMELY VALUABLE AND, AND IT LEASES UP VERY, VERY QUICKLY.
SO I WANTED TO SHARE WITH YOU, UM, UH, A DEEP DIVE INTO THE COMMERCIAL REALM.
UM, WE'RE GONNA DO THE SAME IN, UM, FOR, FOR, UH, THE RESIDENTIAL MARKET, BUT RECALL MULTIFAMILY, UH, AND, AND HERE IS, UH, CONSIDERED COMMERCIAL.
THAT'S, UH, HOW, UH, BOTH THE APPRAISAL DISTRICT TREATS IT.
BUT WHAT YOU SEE HERE IS, IS A COMPARISON FROM FY 25 TO FY 26, AND YOU SEE THE CHANGE IN, UM, THE, UM, THE POSITIVE CHANGE AND, AND, AND THE NEGATIVE CHANGE YEAR OVER YEAR IN THE VALUE ASSOCIATED, UM, WITH THOSE, UH, DIFFERENT CATEGORIES.
THE REASON WE WANTED TO SPEND SOME TIME ON THIS IS THE SAME REASON WE WANTED TO CONTROL FOR TI AND FOR NORTHSIDE.
THESE ARE THE NUMBERS THAT ARE GONNA BE PUBLISHED, RIGHT? THESE ARE, UM, THE CERTIFIED NUMBERS, AND THESE ARE THE PERCENTS THAT YOU'RE LIKELY TO SEE IN DALLAS MORNING NEWS OR COMMUNITY IMPACT.
HOWEVER, THEY DON'T TELL THE WHOLE STORY.
WHAT YOU REALLY HAVE TO DO IS, WHAT WE DID PREVIOUSLY IS YOU HAVE TO FACTOR THE CHANGE FROM THE NORTH SIDE AND FROM THE TI EXEMPTIONS, SO YOU CAN KIND OF TOGGLE BACK AND YOU CAN SEE A PRETTY SIGNIFICANT DIFFERENCE.
SO WHAT YOU SEE THERE IN THE REAL ESTATE MARKET IS THE CHANGE FROM FY 24 TO 25 IS YOU SEE, UM, FROM A 8.7 ALL THE WAY UP TO AN 11.9% CHANGE.
NOW, WHY, UH, THEY DID IT THIS WAY.
WE BELIEVE WE CAN EXPLAIN TWO OF THE FOUR NORTH SIDE ACCOUNTS ARE IN THE REAL ESTATE SEC, ARE IN THE REAL ESTATE SECTOR.
UM, AND WE BELIEVE THAT'S BECAUSE THOSE ARE THE, UM, BUILDINGS THAT HAVE THE RETAIL AND OR THE COMMON SPACE.
AND SO, AS OPPOSED TO BEING A MULTIFAMILY, THEY'RE IN REAL ESTATE.
SO HAD, SO THIS IS THE BEST WAY TO THINK ABOUT THIS CHART.
HAD THE NORTH SIDE EXEMPTION BEEN APPLIED ACCURATELY TO THE CERTIFIED ROLE, UM, BACK IN FY 25, YOUR CHANGE WOULD ACTUALLY BE 11.9%, NOT THE, UM, NOT THE 8.7%.
UH, THE COMMERCIAL BPP IS BEING IMPACTED BY THE TWO ACCOUNTS THAT WE DESCRIBED FROM, UM, FROM TI.
THAT'S WHY IT'S GOING DOWN ACTUALLY, BECAUSE REMEMBER, FY 26, THAT'S WHERE THE NEGATIVE HIT WAS.
AND F FFY 26 MULTIFAMILY TWO ACCOUNTS FROM NORTH SIDE.
SO YOU'RE GOING FROM A 1.8% UP TO A 1.2%.
THE INDUSTRIAL IS FROM A 46% DOWN TO JUST 11% DOWN.
SO HAD IT BEEN APPLIED LAST YEAR, WE WOULDN'T HAVE HAD, UH, YOU WOULDN'T HAVE SEEN THAT, THAT, THAT, UH, PROBABLY APPROPRIATELY.
WHAT I REALLY WANNA FOCUS ON THOUGH, IS I WANNA FOCUS ON THE MULTIFAMILY, AND I WANNA FOCUS ON THE OFFICE, BECAUSE THAT IS THE, THAT IS THOSE TWO SECTORS ARE WHERE YOU'RE GONNA SEE A TREMENDOUS AMOUNT OF INVESTMENT TAKING PLACE.
AND WE WANNA EXPLAIN TO YOU WHY YOU'RE NOT SEEING THAT THIS YEAR, AND WHEN YOU CAN EXPECT TO SEE THAT THESE ARE ALL PROJECTS THAT ARE ANNOUNCED IN MANY CASES, THEY'VE STARTED CONSTRUCTION OR THEY'RE PERMITTED.
SO LET'S GO TO, UH, JUST A QUICK EXAMPLE OF A TYPICAL CONSTRUCTION COMMERCIAL CONSTRUCTION PROJECT.
UM, SO LET'S SAY A PROJECT WAS ANNOUNCED BACK IN JANUARY OF 2024.
UH, MAYOR PRO TEM, YOU CAN PROBABLY GIVE THIS TALK BETTER THAN I CAN.
YOU'RE PROBABLY GONNA HAVE ABOUT NINE MONTHS.
AND THESE ARE, THESE ARE ESTIMATES, BUT YOU'RE PROBABLY GONNA HAVE ABOUT NINE MONTHS OF PLAN DEVELOPMENT, RIGHT? THEN YOU'RE GONNA PROBABLY HAVE, UH, SEVERAL, YOU MAY BID IT AND AWARD IT AND HAVE CONTRACT NEGOTIATIONS FOR ABOUT THREE MONTHS, MAYBE, PLUS OR MINUS.
AND THEN DEPENDING ON THE PROJECT, IF IT'S A TILT WALL PANEL BUILDING, YOU MIGHT BE DONE IN 18 MONTHS.
IF IT'S A WOOD FRAME APARTMENT BUILDING, IT MAY TAKE YOU 24, MAYBE EVEN 30 MONTHS.
BUT THE BOTTOM LINE IS, YOU CAN SEE WHAT WE'RE TRYING TO PRODU DEMONSTRATE HERE IS THAT YOU'VE GOT A DIFFERENCE FROM JANUARY OF 24 WHEN THE PROJECT'S ANNOUNCED TO WHEN THE PROJECT IS COMPLETED IN AUGUST OF 26TH.
IN THIS EXAMPLE, TAKE THAT TYPICAL PROJECT AND EXAMPLE.
AND THE IMPORTANT PART ON THE SECOND CHART HERE IS TO LOOK AT WHEN IS THE FIRST APPRAISAL GONNA OCCUR, UH, FOLLOWING CONSTRUCTION.
THAT WOULD HAPPEN IN THIS SCENARIO IN JANUARY OF 27.
SO WE DON'T GET THE BENEFIT OF THE FULL PROJECT ON THE TAX ROLLS UNTIL FY 28, EVEN THOUGH THE PROJECT WAS ANNOUNCED IN FY 24.
WHAT YOU'RE SEEING TODAY ON OUR TAX ROLLS IS NOT A BYPRODUCT OF ANYTHING WE DID LAST YEAR OR THIS YEAR.
IT'S A BYPRODUCT OF WHAT HAPPENED BETWEEN ABOUT MID 21 AND MID 23.
ON THE MULTIFAMILY SIDE, THEY COULDN'T GET A DEAL UNDERWRITTEN.
THE CAPITAL WAS JUST TOO EXPENSIVE.
THEY COULDN'T GET A DEAL TO PENCIL OUT.
THERE WAS DEMAND, THERE WAS ENDLESS DEMAND THEY WANTED TO BUILD VERY BADLY, BUT THEY WERE FEW.
IF ANY, CONSTRUCTION STARTS BETWEEN 2021, MID 21, AND MID
[01:00:01]
23 ON THE OFFICE SIDE, IT WAS A COMPLETE LACK OF NEW CONSTRUCTION STARTS OR RENOVATIONS, OR EXPANSIONS OR RELOCATIONS.ONE, THE CAPITAL WAS A DRIVING FACTOR.
WE'VE TALKED TO DOZENS OF, UH, OF, OF DEVELOPERS.
THE OTHER ISSUE THOUGH, WAS JUST THE RESETTING OF WHAT DOES OFFICE MEAN? AFTER COVID, REMEMBER IN 2001, IN 2002, EVERYBODY THOUGHT THAT REMOTE WORKING WAS GONNA BE A THING.
BUT AS I LOOK AT COUNCILWOMAN JUSTICE AND KNOW HER STORY AND COUNCILMAN, UH, CORCORAN AND KNOW HISTORIAN, I LOOK AT OUR OWN ORGANIZATION AND OUR STORY, THAT IS NOT THE FACT, THAT IS NOT THE FACT.
THE OTHER THING THAT I'M GONNA TELL YOU THAT WE HAVE TO BE MINDFUL OF IS STRIKING A, A STRIKING A HEALTHY BALANCE.
THE OTHER THING THAT I BELIEVED HAPPENING IN OH ONE, IN OH THREE, UH, OH ONE THROUGH OH THREE COMING OUTTA THE IQ, UH, ANNOUNCEMENT, WAS WHAT I WOULD SAY MIGHT BE A DISPROPORTIONATE FOCUS ON STARTUPS AND ENTREPRENEURSHIP AND THINGS OF THAT NATURE.
IT IS ABSOLUTELY A CRITICAL PART, ABSOLUTELY A CRITICAL PART OF OUR STRATEGIC PLAN, BUT IT HAS TO BE A BALANCED PART.
AND I THINK RIGHT NOW, WE'RE STRIKING THAT BALANCE.
SO WHY WOULD I GO THROUGH THIS LENGTHY EXPLANATION? IT'S BECAUSE ONE, ONE OF THE WHY I'M RECOMMENDING CERTAIN THINGS I'M ING TONIGHT IS NOT BECAUSE OF WHAT'S HAPPENING TODAY.
THIS CHART REPRESENTS OVER, UH, THREE QUARTERS OF A BILLION DOLLARS AN INVESTMENT THAT IS GOING TO HAPPEN.
WE AREN'T SPECULATING ON ONE DEAL IN THIS.
WE HAVE OTHER DEALS WE COULD HAVE ADDED, AND THEY'RE NOT DEALS THAT HAVE BEEN ANNOUNCED.
THEY'RE NOT DEALS THAT HAVE BEEN FUNDED.
THEY'RE NOT DEALS THAT WE'VE ENTERED INTO ECONOMIC DEVELOPMENT AGREEMENTS ON.
THEY'RE NOT DEALS THAT THE LEASES ARE SIGNED.
THESE ARE ALL DEALS THAT WILL HAPPEN.
THEY'RE, THEY'RE LOCKED AND LOADED AND THEY'RE PROGRESSING.
THIS IS THREE QUARTERS OF A BILLION DOLLARS.
WHAT I WANT TO DRAW YOUR ATTENTION TO IS THE RIGHT HAND COLUMN.
THAT IS WHEN YOU CAN EXPECT THE FULL BENEFIT OF THESE DEALS TO HIT OUR TAX RULES.
FY 27 IS NEXT YEAR, UH, YOU KNOW, JUST DOING FAST MATH, THAT'S 120, $130 MILLION, UM, IN INVESTMENT IN NET 27.
THAT'S GONNA BE REPEATED YEAR AFTER YEAR.
THAT'S NOT WHAT WE'RE WORKING ON.
IT'S NOT NEW DEALS, NEW OPPORTUNITIES THAT WE'LL GET.
THIS IS WHY WE BELIEVE WE'RE GONNA RETURN TO A GROWTH MODE IN A PRETTY PROMINENT WAY.
AND IT'S WHY SOME OF THE MORE BOLD RECOMMENDATIONS I HAVE FOR YOU TONIGHT, I FEEL CONFIDENT THAT WE CAN MANAGE AND WE CAN, WE CAN, WE CAN SUCCESSFULLY INTEGRATE.
SO HOW ARE WE GONNA CONTINUE TO MANAGE THIS? THIS SLIDE IS GONNA BE A, A FORMAT THAT YOU SEE, UH, THROUGHOUT.
BOB'S GONNA COVER THE REST OF THESE, BUT SINCE WE'RE TALKING ECONOMIC DEVELOPMENT, I WANNA TALK TO YOU ABOUT HOW WE'RE GONNA CONTINUE TO KEEP THE MOMENTUM IN THIS WAY.
YOU SEE HERE AT THE TOP THAT THERE'S A CHANGE IN THE FY 25 VERSUS 26 PROPOSED BUDGET OF ABOUT $39,000.
I WANNA TELL YOU THAT THAT'S NOT TAKEN ANY RESOURCES FROM ECONOMIC DEVELOPMENT.
PREDOMINANTLY WHAT THAT IS, IS THAT IS A TURNOVER OF A HANDFUL OF STAFF, THAT THE STAFF THAT LEFT WERE GETTING PAID A HIGHER SALARY, AND THE STAFF THAT CAME IN CAME IN AT A STARTING SALARY OR LOWER SALARY.
AND SO THAT SIMPLY IS THE DELTA IN THE SALARY THAT'S BEING PAID.
WHAT'S IMPORTANT IS TO LOOK DOWN AT THE BOTTOM, UH, WHERE YOU SEE OVER $3 MILLION THROUGH THE GENERAL FUND, THROUGH THE ECONOMIC DEVELOPMENT FUND, AND THROUGH THE, AND THROUGH TIFF, OVER $3 MILLION BEING DEDICATED TO OUR ECONOMIC DEVELOPMENT EFFORTS.
NOW, THAT'S NOT FOR A FOUR B MUDDY, BUT IT'S PRETTY DARN GOOD FOR RICHARDSON.
IT'S THE HIGHEST, UH, LEVEL THAT WE'VE BEEN AT.
UM, AND THAT'S LARGELY BECAUSE YOU'VE SUPPORTED INCREASING, UM, THE TRANSFER OUT TO THE ECONOMIC DEVELOPMENT FUND YEAR AFTER YEAR.
SO WE ARE IN A, I FEEL LIKE WE'RE IN A STRONG POSITION TO CONTINUE WITH THE MOMENTUM THAT WE'VE GENERATED AND TO CONTINUE, UM, ADDING TO THAT LIST THAT WE SHARED WITH YOU, UNLESS, IF THERE'S NO QUESTIONS, I'D LIKE TO NOW JUST, UH, TRANSITION TO THE KEY FOCUS AREAS, UM, HAVING ALL OF THE CONTEXT OF THE INTERNATIONAL AND NATIONAL DYNAMICS WE'RE CONSIDERING AND HOW WE'RE ENGAGING WITH OUR BUSINESS COMMUNITY, OUR CURRENT REVENUE SITUATION, AND WHERE I THINK WE'RE GOING.
THAT IS THE KEY FACTORS ALONG WITH THE OTHER, UM, FACTORS THAT YOU SEE HERE.
THE DRIVERS, IF YOU WILL, IN MY, MY RECOMMENDATION AND OUR KEY, UH, OUR KEY AREAS HERE.
UM, I TALKED ABOUT, UH, THE, THE ECONOMIC FACTORS.
YOUR GOALS AND STRATEGIES ARE VERY THANKFUL.
WE WERE ABLE TO GET THAT IN TWO SATURDAYS, SATURDAYS AGO TO REALLY HELP, UH, TO CEMENT A LOT OF IDEAS THAT, THAT WE HAD AND, AND REINFORCE OTHERS.
UM, THE DEEP DIVE FEEDBACK THAT YOU PROVIDED IS ALWAYS EXTREMELY HELPFUL AND IMPORTANT.
UM, OUR ORGANIZATIONAL ASSESSMENT, UH, ONGOING.
UM, WE, UM, LIKE THE PARKS DEPARTMENT, WE TAKE A LOT OF INPUT FROM OUR BOARDS AND COMMISSIONS, OUR HOMEOWNERS AND NEIGHBOR ASSOCIATIONS.
UH, OUR INSTITUTIONAL PARTNERS ARE EXTREMELY IMPORTANT.
UM, OBVIOUSLY THE BUSINESS AND DEVELOPMENT COMMUNITY, WHICH WE HAVE AN ONGOING DIALOGUE WITH, UM, REGULARLY AND ALL, ALL ROUTINELY, UM, THE ADOPTED PLANS AND SPECIAL INITIATIVES, THAT'S SOMETHING THAT, UM, NEVER HAS BEEN MORE IMPORTANT.
UM, ONE OF YOUR TACTICS THAT YOU, UH, UH, DISCUSSED WAS TRYING TO FIGURE OUT A WAY NOT TO LOOK AT THOSE IN ISOLATION AND PRIORITIZE THEM, BUT LOOK AT THOSE ACROSS THE DIFFERENT REALMS. THE MASTER, THE TRANSPORTATION
[01:05:01]
MASTER PLAN, THE PARKS MASTER PLAN, THE AQUATICS MASTER PLAN, UM, OTHERS, UM, AND HOW ARE WE GOING TO RANK AND PRIORITIZE THOSE? UM, AND THEN, OF COURSE, OUR OWN CITY AND EXTERNAL ASSESSMENTS.SO MY KEY FOCUS AREAS ARE PEOPLE, PUBLIC SAFETY AND PROJECTS, UH, AND INFRASTRUCTURE.
YOU KNOW, IN A YEAR LIKE THIS, OR A YEAR LIKE WE HAD LAST YEAR, IT WOULD BE EASY TO, UM, TO, TO, TO, TO TRY TO THINK DIFFERENTLY ABOUT YOUR KEY FOCUS AREAS.
I MEAN, PE-PEOPLE ARE OUR MOST EXPENSIVE RESOURCE, UM, AND PEOPLE ARE THE MOST EXPENSIVE RECOMMENDATION I HAVE FOR YOU THIS YEAR.
UM, BUT I BELIEVE, UM, IT'S EXTREMELY IMPORTANT TO CONTINUE TO PRIORITIZE OUR PEOPLE.
THEY ARE THE ONES THAT ARE OUT THERE EVERY SINGLE DAY PROVIDING ON OUR, OUR BEHALF TO THE COMMUNITY, THE EXCEPTIONAL SERVICES AND PROGRAMS WE HAVE.
IF WE DO THAT, AND WE TAKE CARE OF PUBLIC SAFETY AND INFRASTRUCTURE, WHEN, WHEN WE COME OUTTA THE OTHER END OF THE, THE SITUATION, WE'RE NOW, WE'RE GONNA BE POWERFULLY STRONG AND POISED, UM, FOR CONTINUED SUCCESS.
I ALWAYS LIKE TO TALK ABOUT THE VACANCY RATE AND THE HISTORY, UM, THAT WE HAVE.
YOU SEE HERE, UNFORTUNATELY, WE'RE KIND OF, UH, STARTING TO EDGE BACK UP A LITTLE BIT HERE.
UM, WE'RE AT ABOUT AN 8.5% BA VACANCY RATE TODAY.
UM, AND UNFORTUNATELY, UH, AS YOU'LL SEE IN A SECOND, THOSE ARE IN SOME KEY POSITIONS WHERE WE HAD MADE SOME REAL PROGRESS.
UM, IF YOU LOOK AT THIS CHART, YOU'LL SEE SOME OF THESE ARE NOT GONNA BE SURPRISING TO YOU.
WATER WASTEWATER, UM, UH, FLEET, UH, CONTINUES TO BE VERY DIFFICULT.
UH, BUILDING, INSPECTION, TRADE INSPECTORS, MECHANICAL, ELECTRICAL, PLUMBING, VERY DIFFICULT TO FIND.
BUT WHAT I WANNA DRAW YOUR ATTENTION TO, AND LET ME PREFACE THIS BY SAYING, UM, CHIEF AND I CHIEF, UH, I'M SORRY.
CHIEF TITO AND I MEET EVERY WEEK, EVERY SINGLE WEEK.
STAFFING IS ONE OF THE ITEMS THAT WE DISCUSS.
UH, THEY ARE OUT, THEY ARE DOING A, A REALLY POWERFUL JOB IN RECRUITING.
AND IT MADE, IT HAD, IT HAD GREAT STRIDES.
IT, IT RESULTED IN GREAT STRIDES.
AT ONE TIME THAT POLICE OFFICER VACANCY WAS DOWN TO ONE RIGHT? CHIEF, WE WERE DOWN TO ONE, AND WE HAD PEOPLE IN THE PIPELINE.
WHAT WE'VE EXPERIENCED, AND WHAT WE'LL TALK ABOUT IN A SECOND, IS WE'VE EXPERIENCED A SIGNIFICANT NUMBER OF RETIREMENTS AND RESIGNATIONS FOR OTHER REASONS.
UM, AND THESE ARE, UM, THESE ARE UNDERSTANDABLE.
THERE'S, THERE'S NOTHING AMISS.
THERE'S NOTHING THAT WE'RE NOT DOING THAT WE SHOULD BE DOING.
THIS IS THE CHURN OF LIFE THAT'S OCCURRING.
BUT THE FACT IS, WE'RE BACK TO 10 VACANCIES IN A POLICE OFFICER.
AND I, I WANNA POINT THAT OUT TO YOU BECAUSE MY RECOMMENDATION REGARDING COMP FOUR PUBLIC SAFETY IS PREDICATED ON THAT FACT.
UH, UH, CHIEF VY AND I, UH, ALSO VISIT ON THIS.
I THINK CHIEF, WE'VE HAD MORE RETIREMENTS OF 30 AND 35 YEAR EMPLOYEES IN THE LAST, UH, YOU KNOW, SIX TO EIGHT MONTHS THAN I CAN RETIRE.
I, I CAN REMEMBER, UH, IN, IN THE FIRE DEPARTMENT, SPEAKING OF RETIREMENT, UM, IT'S ALWAYS IMPORTANT TO UNDERSTAND WHERE WE ARE AS A WORKFORCE.
ON THE LEFT HAND SIDE, THERE, UH, YOU CAN SEE A CHART THAT TALKS ABOUT THE EMPLOYEES YEARS OF SERVICE.
UH, 45% OF OUR EMPLOYEES NOW HAVE, UH, LESS THAN, UH, FIVE YEARS OF SERVICE WITH THE CITY.
COMPARE THAT TO THE RIGHT HAND CHART, WHERE YOU HAVE 351 EMPLOYEES THAT CAN RETIRE, THAT CAN RETIRE IN THE NEXT, UH, UH, UH, BY THE END OF 2027.
279 EMPLOYEES, UM, CAN RETIRE TODAY.
SO WE ARE A CITY OF VERY DIFFERENT, UM, VERY DIFFERENT STAFFING CONSIDERATIONS RIGHT NOW.
ON THE ONE HAND, WE'VE GOT GREAT YOUNG TALENT THAT MAKES UP THAT 45% THAT WE'RE TRYING TO TRAIN.
WE'RE TRYING TO MAKE SURE THAT INSTITUTIONAL KNOWLEDGE IS TRANSFERRED IN AN ORDERLY WAY SO THAT THEY HAVE THE BENEFIT, UM, OF WHAT I BELIEVE HAS BEEN RICHARDSON SECRET SAUCE OVER TIME, WHICH IS THE CONTINUITY OF LEADERSHIP AND THE CONTINUITY OF COMMUNITY.
AND WE'RE BALANCING THAT WITH A WORKFORCE THAT, THAT PRACTICALLY HAS, YOU KNOW, HALF OF THEM HAVE LESS THAN FIVE YEARS IN THE COMMUNITY.
UM, SO, SO THIS IS A SERIOUS CONSIDERATION.
I LOOK AT, I'LL TELL YOU, THE EXECUTIVE NUMBER TO ME IS A, IS AN INTERESTING NUMBER.
UH, NEARLY 70% OF THE EXECUTIVES IN THE CITY, THAT INCLUDES CMO DEPARTMENT HEADS AND ASSISTANT DEPARTMENT HEADS.
NEARLY 70% OF THE EXECUTIVES CAN RETIRE TODAY.
THAT'S A BIG NUMBER, UH, FOR AN ORGANIZATION.
UM, NOT WITHSTANDING, WE HAVE DONE WITH YOUR GREAT SUPPORT, YOUR, YOUR TREMENDOUS SUPPORT.
WE HAVE DONE A LOT SINCE 2022, UM, TO, UH, TO MAKE SURE THAT WE CONTINUE TO BE A PLACE THAT, UH, UH, UH, CAN HAVE SUCCESS RECRUITING, BUT MORE IMPORTANTLY AND EQUALLY IMPORTANT, RETAINING THE TALENT.
I WON'T GO THROUGH THIS LIST, IT'S A FAMILIAR LIST TO YOU.
UM, BUT I WILL, I WILL TELL YOU, EVERY YEAR, UM, YOU'VE SUPPORTED THE PAY A, THE PAY PLAN ADJUSTMENTS, THE STEPS FOR PUBLIC SAFETY, SUPER PROUD OF THE LIVING WAGE ADJUSTMENTS THAT WE'VE DONE SINCE 2022.
YOU'VE ALLOWED US TO TAKE THE LIVING, THE, THE STARTING SALARY FOR FULL AND PART FULL-TIME AND PERMANENT PART-TIME POSITIONS FROM 1250 AN HOUR TO $20 AN HOUR.
THAT IS ENORMOUS, UM, FOR THE FRONTLINE WORKERS, UM, THAT WE COUNT ON SO MUCH THINGS, PEOPLE THAT ARE FILLING THE POTHOLES AND PICKING UP OUR SOLID WASTE AND, AND COMING OUT IN THE MIDDLE OF THE NIGHT AND DIGGING THE HOLE SO THAT SOMEONE CAN GO DOWN AND REPAIR THE WATER.
SO WHEN EVERYBODY WAKES UP, THEY HAVE THE WATER.
[01:10:01]
DIFFERENCE FOR THOSE PEOPLE.UM, WE'VE DONE THINGS LIKE LATERAL, UH, PRO LATERAL ENTRY PROGRAMS FOR POLICE AND FIRE, WHICH IS CHIEF.
YOU'VE, YOU'VE HIRED PEOPLE FROM CALIFORNIA, FROM ILLINOIS, FROM NEW YORK, FROM UM, OREGON, I MEAN, ALL AROUND THE WORLD.
THEY'RE ABLE TO COME HERE, AND THEY'RE ABLE TO COME IN AND MAKE A SALARY THAT'S EQUIVALENT TO THEIR EXPERIENCE, BECAUSE WE HAVE THIS LATERAL PROGRAM, UH, BOX PAY FOR FIRE, UH, BENEFITS, UM, ON, ON THE RIGHT HAND SIDE, ALL OF THESE THINGS.
WITHOUT THESE THINGS, WE WOULD BE IN A MUCH, A MUCH MORE, UH, SERIOUS POSITION WHEN IT COMES TO OUR VACANCY RATE AND TO OUR, TO OUR ATTRITION.
SO LET'S TAKE IT FIRST, A DEEP DIVE ON PUBLIC SAFETY.
I ALWAYS DO POINT THAT OUT, BUT FRANKLY, I WAS DISAPPOINTED WHEN WE GOT, WHEN I GOT THESE RANKINGS FROM HR, YOU HAVE SUPPORTED, UM, 6% RAISES TWO OF THE LAST THREE YEARS, AND A 3% RAISE, UH, IN ADDITION TO STEPS EACH YEAR.
UM, I HOPED, AND, AND, AND, AND QUITE FRANKLY, PRAYED, UM, THAT OUR RANKINGS, UH, WOULD BE A LITTLE BIT STRONGER.
WHAT YOU'RE SEEING HERE, UM, IS A NORTH TEXAS COMMUNITY THAT STILL REMAINS INCREDIBLY, INCREDIBLY COMPETITIVE WHEN IT COMES TO BATTLING AND, AND, AND COMPETING FOR POLICE OFFICERS AND FIREFIGHTERS.
UM, NOT WITHSTANDING, UH, THE 15%, UH, RANGE ADJUSTMENTS THAT WE'VE MADE OVER THE LAST THREE YEARS, YOU CAN SEE THE RANKINGS.
I WON'T GO THROUGH 'EM, BUT I WANT TO DRAW YOUR ATTENTION IN PARTICULAR TO THE MAXIMUM.
AND I'M GONNA COME BACK TO THAT POINT IN A SECOND, AND WHY MAXIMUM IS SO IMPORTANT TO CONSIDER.
BUT, UM, YOU KNOW, WE'RE RANKED, UH, FOR POLICE OFFICER AND FIREFIGHTER 11 OUTTA 13, UH, DOWN OVER FOUR AND A HALF PERCENT, UH, FOR EACH OF THOSE, UH, CATEGORIES.
THANKFULLY, THE WORK THAT YOU'VE ALLOWED US TO DO ON THE GENERAL EMPLOYEES HAS ACTUALLY BEEN VERY SUCCESSFUL OVER THE LAST COUPLE OF YEARS.
UM, YOU LOOK AT THESE POSITIONS, THIS IS NOT A BAD POSITION AT ALL.
UM, WHEN YOU THINK ABOUT, UM, KIND OF COMPETING HERE IN NORTH TEXAS FOR SOME OF THESE, UH, KEY POSITIONS, AND SO A LITTLE, A LITTLE LIGHT ON THE, ON THE OPENING PAY, BUT, UH, REALLY ON, ON THE MAXIMUM PAY, YOU KNOW, ALL, UH, WITH A COUPLE EXCEPTIONS, UH, ALL WITHIN THE RANGE OF ABOUT TWO AND A HALF PERCENT OR LESS, UH, IS WHERE IS ALL WE'RE OFF, UH, ON THE MARKET.
UH, THE LIVING WAGE THAT, UH, WE WHOOP, SORRY ABOUT THAT.
THE LIVING WAGE THAT WE JUST SPOKE ABOUT, UH, IS NOW 23.06.
UM, UM, IN, IN, UH, DALLAS COUNTY.
UH, JUST SO YOU KNOW, 21% OF OUR FULL-TIME JOB TITLES, UM, OR 159 OF, OF OUR, OF OUR COWORKERS HERE, UH, FALL WITHIN A RANGE THAT HAS THAT $20 A MINIMUM.
AND, AND 63% OF OUR PERMANENT PART-TIME EMPLOYEES ARE 165.
UH, ALSO FALL WITHIN THAT, UM, WITHIN THAT $20 STARTING SALARY.
UM, THIS IS A CHALLENGING SITUATION.
UM, WE CANNOT, EVEN IF WE HAD THE FINANCIAL CAPACITY, IT WOULD BE DIFFICULT TO POP THE CLUTCH AND INCREASE THIS BY $3 AND 6 CENTS AN HOUR IN A SINGLE BUDGET YEAR.
IT WOULD, UH, CREATE COMPRESSION ISSUES UP THE, UH, PAY PLAN.
AND SO WE WOULD HAVE TO BE WAY MORE MINDFUL.
IT'S NOT AS SIMPLY AS CHANGING THE STARTING SALARY IF YOU'RE GONNA DO IT BY THAT MUCH IN A YEAR.
AND THAT'S WHY WE'VE TAKEN AN INCREMENTAL APPROACH TO THIS, UH, A, A REGULAR APPROACH YEAR AFTER YEAR.
BUT THAT'S WHY WE'VE REALLY TRIED TO TAKE THIS INCREMENTAL APPROACH.
UM, UH, BUT AGAIN, ABOUT $3 SHORT.
UH, IN TERMS OF THE LIVING WAGE, THIS IS A NEW CHART THAT WE'VE NEVER SHARED WITH YOU BEFORE, BUT I WANTED TO GIVE YOU A SENSE OF WHAT WE'RE DEALING WITH IN NORTH TEXAS RIGHT NOW.
SO THIS IS A SURVEY, AND IT'S NOT OUR SURVEY, IT'S THE CITY OF CARROLLTON SURVEY.
WE PARTICIPATED IN IT, THEREFORE WE GOT A COPY OF IT.
BUT THIS IS A SURVEY OF WHAT OTHER CITIES, UM, AND I GUESS, UH, KENT, THIS WAS WHAT JUNE, BUT THE JUNE TIMEFRAME, THIS IS A, A, A, UH, REPRESENTATION OF WHAT OTHER CITIES WERE REPORTING IN JUNE THAT THEIR BUDGETS WERE GONNA INCLUDE.
NOW, WILL IT ACTUALLY INCLUDE THAT, WILL IT ACTUALLY GET ADOPTED OR APPROVED BY THE COUNCIL? THAT'S TO BE DETERMINED, BUT THIS IS THE BEST INTEL THAT WE HAVE TO GO ON AT THIS POINT IN TIME.
YOU CAN SEE ALAN, UH, WITH RESPECT TO POLICE AND FIRE UP ABOUT 4%.
UM, YOU SEE ARLINGTON ABOUT 3% ACROSS THE BOARD.
IRVING'S LOOKING AT ABOUT A THREE AND A HALF PERCENT ACROSS THE BOARD, ER, UH, MCKINNEY, ABOUT A 3.25%.
UM, PLANO, MESQUITE FRISCO IN DALLAS, UH, DID NOT RESPOND.
THAT'S WHY THEY, THEY, THEY'RE NOT ANTICIPATING ANY CHANGES.
ONE OF THE OTHER THINGS I WANT TO POINT OUT ABOUT THIS IS SOMETHING THAT HAS BEEN A CHALLENGE FOR US, AND IT'S WHY I ALWAYS SAY WHETHER I'M TALKING TO YOU, COUNSEL, I'M TALKING TO THE COMMUNITY, I'M TALKING TO POLICE OR FIRE, I ALWAYS SAY IT'S A POINT IN TIME BECAUSE EACH OF THE LAST FEW YEARS WE HAVE, YOU HAVE SUPPORTED DOING WHAT WE THOUGHT WE NEEDED TO DO TO REMAIN IN A VERY COMPETITIVE POSITION.
AND ALAN FRISCO, IRVING AND MCKINNEY HAVE CONSISTENTLY COME BACK, UH, TWO YEARS AGO.
PLANO HAVE CONSISTENTLY COME BACK WITH MID-YEAR ADJUSTMENTS, PARTICULARLY FOR POLICE AND FIRE.
NOW, SOME OF THOSE ARE THROUGH RENEGOTIATIONS WITH POLICE AND FIRE ASSOCIATIONS, SO THEY'RE UNDERSTANDABLE.
THAT MAY BE THE RHYTHM THEY ON, THAT MAY BE THE TIME THAT THEY TAKE.
SOME OF THOSE ARE BECAUSE THEY WATCH WHAT CITIES LIKE RICHARDSON DO AROUND OCTOBER
[01:15:01]
ONE, AND THEN THEY MAKE THEIR, THEN THEY MAKE THEIR, THEIR MIDYEAR ADJUSTMENTS, UH, TO, UH, TRY TO RETAIN A MORE COMPETITIVE POSITION.MY RECOMMENDATION TO YOU TONIGHT, UH, FOR COMPENSATION FOR FY 26 IS AS FOLLOWS.
UM, I'M RECOMMENDING A, UH, UH, AND WE'LL, WE'LL, WE'LL LOOK SHORTLY, WE'LL PLUG THESE NUMBERS IN SHORTLY TO THE CHARTS, AND THEN LOOK AT, LOOK AT HOW THEY POSITION US.
UH, MY RECOMMENDATION TO YOU, UH, IS TO PROVIDE UP TO A FOUR POINT A HALF PERCENT.
THIS IS NOT, THIS IS NOT UNILATERAL.
IT'S NOT A GIVEN, IT'S NOT AN ASSUMPTION.
THIS IS MERIT BASED UP TO A FOUR POINT A HALF PERCENT MERIT BASED, UH, PAY ADJUSTMENT FOR IN POLICE 172 SWORN POSITIONS.
UM, THAT WILL COME IN THE FORM OF A 2.5%, UM, UH, PAY ADJUSTMENT IN OCTOBER OF 2025, AND THEN A 2% INCREASE IN APRIL OF 2026.
UM, THE REMAINDER OF, UH, THE, UH, CIVILIAN POSITIONS IN PD WOULD RECEIVE A 2.5% RAISE ON OCTOBER 1ST.
THAT YOU'LL SEE IS CONSISTENT WITH THE CIVILIAN POSITIONS IN FIRE AND THE GENERAL, UM, GENERAL GOVERNMENT EMPLOYEES.
UH, SO ALL EMPLOYEES WILL RES PROPOSE TO RECEIVE A TWO POINT A HALF PERCENT MERIT RAISE ON TEN ONE.
UM, IN ADDITION, UH, POLICE AND FIRE SWORN, UH, WILL ALSO, UM, UM, I'M SORRY, IN POLICE, UM, THE SWORN AND CIVILIAN POSITIONS, UH, THAT ARE IN STEPS, WILL, WOULD ALSO RECEIVE THEIR STEPS.
RECALL, YOU KNOW, I, FOR LACK OF A BETTER TERM, I KIND OF CALL 'EM QUASI SWORN.
I DON'T KNOW IF THAT'S A GOOD ENOUGH CHIEF OR NOT, BUT, UM, THESE ARE THE DETENTION OFFICERS.
THEY ARE OUR COMMUNICATION CALL TAKERS.
THEY'RE OUR CRIME SCENE ANALYST.
UM, CHIEF, ANYBODY MISSING? THAT'S IT.
SO THESE ARE, THESE ARE DEFINITELY FOLKS THAT ARE IN THE FIELD THAT ARE DEALING WITH THE SAME TYPES OF, UM, SITUATIONS, UM, AND SUPPORTING OUR, OUR POLICE IN THE FIELD.
UH, AGAIN, IN FIRE, IT WOULD BE THE SAME FOUR AND A HALF PERCENT MERIT BASED INCREASE, TWO AND A HALF ON 10, ONE 2%, FOUR, ONE, UH, THE FIVE CIVILIANS WOULD RECEIVE THE TWO POINT HALF PERCENT, AND THEN STEPS FOR FIRE.
UM, AND THEN IN ADDITION TO THE 2.5% MERIT-BASED ADJUSTMENT, UH, FOR ALL GENERAL GOVERNMENT EMPLOYEES, I WOULD LIKE TO RECOMMEND INCREASING THE, THE LIVING WAGE FROM $20, UH, TO $21.
UM, THIS, UH, NUMBER THAT YOU SEE AT THE BOTTOM IS ACROSS ALL FUNDS.
SO THAT'S WATER, SEWER, SOLID WASTE, GOLF, UH, HOTEL, MOTEL, UM, DRAINAGE.
UH, UH, AND, AND SO THAT'S, THAT'S THE TOTAL, THAT'S THE TOTAL NUMBER, UH, ACROSS ALL FUNDS.
THAT THE COMP PLAN THAT'S BEFORE YOU WOULD, UH, WOULD REQUIRE, YES, SIR.
DONNA, I'VE GOT A COUPLE QUESTIONS.
AND I KNOW, UM, I DON'T KNOW, A MONTH OR SO AGO, THERE WAS A, SOMETHING THAT CAME UP, AN INCIDENT, UH, AN UNFORTUNATE INCIDENT, UM, WHERE I HEARD A TERM, YOU KNOW, THESE PERMANENT VERSUS, UH, TEMPORARY OR MM-HMM
WHAT DO WE CALL 'EM? NOT TEMPORARY, BUT SEASONAL.
HOW, HOW MUCH OF THIS, UM, HOW MUCH, WHEN WE LOOK AT LIKE, GARBAGE IN STREETS AND SOME OF THOSE TYPES OF, UH, LABOR INTENSIVE POSITIONS THAT ARE HARD, REALLY HARD TO FILL SOMETIMES.
HOW MANY OF THOSE ARE SEASONAL VERSUS, UM, VERSUS PERMANENT? YEAH.
SO, SO, UH, NONE OF THE POSITIONS YOU DESCRIBED WOULD FALL INTO SEASONAL.
NOW WE, WE, UM, SO FOR SOLID WASTE, FOR INSTANCE, WE HAVE LOADERS.
WE HAVE DRIVERS LO DRIVER LOADERS.
NOW WE DO USE TEMPORARY, BUT THEY ARE NOT, THEY ARE NOT CITY EMPLOYEES IN ANY REGARD.
UH, SEASONAL, UH, COUNCILMEN ARE GENERALLY THINGS LIKE LIFEGUARDS, UH, DAY CAMP COUNSELORS.
UM, WHAT ELSE, GUYS? UH, ANY OTHER EXAMPLES? PARKS, MAINTEN, I'M SORRY.
PARKS MAINTENANCE, PARKS MAINTENANCE.
THAT MAY BE IN THE SUMMER WHERE WE RAMP UP.
SO YEAH, I MEAN, THESE, THESE ARE, THESE ARE MOSTLY, UH, FOCUSED ON SUMMER EMPLOYMENT.
UM, THE FOUR AND A HALF FOR, UH, SWORN POSITIONS, THAT'S FROM ENTRY LEVEL OFFICER ON UP TO, YOU KNOW, ASSISTANT CHIEF OR CHIEF OR, I MEAN, THAT'S ACROSS THE, WELL, IT, IT, IT GOES UP TO CAPTAIN, NOT NECESSARILY.
THE, THE, THE CHIEF AND THE ASSISTANT CHIEFS ARE, UH, IN THE EXECUTIVE BUCKET.
UM, ON THAT, THE MERIT BASED, UH, WHAT IS, I MEAN, IS THAT DECIDED BY THEIR SUPERVISORS THERE CAN, CAN MM-HMM
YOU OR MAYBE THE CHIEF SPEAK TO KIND OF HELP ME UNDERSTAND WHAT THAT MERIT BASE MEANS AS FAR AS, IS THAT A YEARLY, ARE THEY EVERY SIX MONTHS? I HAVE NO IDEA.
NO, IT'S, YEAH, THAT'S A GREAT QUESTION.
SO, SO WE DO ANNUAL EMPLOYEE EVALUATIONS, UM, THE, FOR SWORN IN KNOTS FOR, FOR, WELL, WE'RE ALSO, WELL, NOT, I'M SORRY.
THE VAST MAJORITY OF EMPLOYEES ARE CIVIL SERVICE.
SO, UH, IF YOU'RE, IF YOU'RE ESSENTIALLY, IF YOU'RE ASSISTANT DIRECTOR ABOVE, YOU'RE NOT.
BUT EVERYBODY ELSE IS CIVIL SERVICE.
SO THEY'RE, WE'RE REQUIRED TO PROVIDE AN ANNUAL EVALUATION.
UH, THAT'S ONE OF THE FACTORS THAT GO INTO DETERMINING MERIT.
[01:20:01]
YOU CAN BE A SATISFACTORY, YOU KNOW, EMPLOYEE AND GET A SATISFACTORY RATING, AND MAYBE YOU GET A PERCENT AND A HALF OR 2%, THAT'S WHAT YOUR SUPERVISOR DECIDES.UM, I WOULDN'T SAY IT'S, IT'S, IT'S GENERALLY GONNA BE THE DIRECT SUPERVISOR AND PROBABLY AT LEAST ONE OTHER PERSON, UM, YOU KNOW, IN, IN FIRE AND PD AND THE COMMAND STAFF OR IN, YOU KNOW, PARKS AND, AND SOMEBODY IN THEIR, THEIR, THEIR LEADERSHIP TEAM THAT ARE GONNA BE WEIGHING IN ON, ON THE, UH, THE MERIT, THE, THE, THE MERIT, WHETHER IT'S A FULL MERIT OR A PARTIAL MERIT.
YEAH, BECAUSE I REMEMBER, I DON'T KNOW, I THINK WHEN I FIRST JOINED THE COUNCIL CHIEF TITTLE, THERE WAS TALK AROUND, UM, SOME OF THE HEALTHY TO TRY TO IMPROVE, I GUESS ENCOURAGE HEALTHY HABITS AND SOME OF THE COMPETITIVE STUFF TO STAY HEALTHY.
AND THERE WAS, I THINK, SOME KIND OF MONEY TIED TO SOME OF THAT.
AND I DON'T REMEMBER THERE, THERE'S A ROAD TEST THAT WE COMPETE.
UM, AND YEAH, I GUESS THE QUESTION THERE, IS THAT PART OF THE MERIT? IS THAT SEPARATE? NO, SIR.
THAT WOULD BE SEPARATE FROM THE MERIT BASED, UM, TO, TO ANSWER SOME OF THAT QUESTION.
ALSO AS IT RELATES TO MERIT BASED, WE HAVE WITHHELD, UM, AN INCREASE IN MERIT, UH, WHETHER IT'S A STEP INCREASE OR A REGULAR PAY INCREASE BASED ON PERFORMANCE.
AND SOMETIMES WE'LL HOLD THAT BACK, UM, FOR THREE MONTHS AND, UH, SEE HOW THEY, UM, IMPROVE AND THEN BUMP IT UP TO FULL AMOUNT RETRAIN AND DO SOME, YEAH.
DO YOU HAVE OPPORTUNITY FOR CORRECTION TO EARN THAT? CORRECT.
COUNCILMAN, THERE, THERE ARE, IN ADDITION TO FITNESS PAY, UH, WHICH APPLIES TO, YOU KNOW, A LOT OF POSITIONS, THERE ARE THINGS LIKE, UH, EDUCATION PAY, UM, THERE ARE CERTIFICATION PAY, LIKE, YOU KNOW, OUR CLASS A WATER OPERATORS FOR INSTANCE, THAT'S A VERY DIFFICULT OPERATOR LICENSE TO ACHIEVE.
AND SO IT'S NOT JUST PUBLIC SAFETY, THAT THAT'S SOMETHING THAT, THAT, UM, WE HAVE IN, IN SEVERAL DIFFERENT DISCIPLINES THAT WE DO.
WE PAY A, I REMEMBER HEARING ABOUT BILINGUAL DIFFERENTIALS.
DO WE DO THAT WITHIN THE SWORN POSITIONS AS WELL? CITYWIDE? YEAH.
UM, SO DON, I, I FULLY SUPPORT POLICE AND FIRE.
I HAVE A CONCERN UNDER GENERAL PERSONNEL.
I WAS ON THE COUNCIL WHEN WE HAD TO DO THE ORIGINAL FIRST 6% TO TRY AND PLAY MAJOR CATCH UP.
I HATE TO THINK THAT WE'RE GONNA HAVE TO GO BACK THERE AGAIN.
I LOOK AT YOUR CHART AS CHART, EXCUSE ME, AS FAR AS BENCHMARK CITIES, AND MOST OF THEM ARE, ARE CLOSER TO THREE, THREE AND A HALF.
AND SO, UH, I WOULD ASK, COULD WE NOT POTENTIALLY FIGURE OUT A WAY TO FOLLOW THE SAME, UM, RATIONALE THAT YOU'VE DONE IN POLICE AND FIRE, BUT LOOK TO ADD 1% IN APRIL FOR GENERAL PERSONNEL? I KNOW, I KNOW WE HAVE A TOUGH BUDGET YEAR.
BUT I THINK WE PUT A LOT OF MONEY IN A LOT OF OTHER PLACES, BUT IF WE DON'T HAVE PERSONNEL, AND I JUST REMEMBER IT WAS AN, IT WAS AN UGLY TIME, AND YOU, YOU REMEMBER THAT DON, I THINK ACTUALLY DAN WAS STILL OUR CITY MANAGER AND HE CAME AND WE WERE, WE WERE PRETTY, PRETTY STRONG ABOUT IT, THAT WE HAD TO PLAY CATCH UP AT THAT POINT IN TIME.
AND I REALLY DON'T WANNA SEE US GO BACK TO THOSE DAYS.
SO I, I, I'D REALLY ASK IF WE COULDN'T FIGURE OUT HOW WE COULD ADD THAT 1% FOR GENERAL IN APRIL OF 2026.
WE'LL, TO, TO FOLLOW THE, THE SAME MM-HMM.
UH, WHAT DO I WANNA SAY? RATIONALE MAYBE, OR HOWEVER YOU APPROPRIATE TERMINOLOGY.
SO FULLY SUPPORT WHAT YOU'RE PROPOSING, BUT WOULD REALLY LIKE TO SEE IF WE COULDN'T, IF WE HAVE TO PULL FROM SOMEWHERE ELSE, LOVE TO HEAR WHAT YOUR RECOMMENDATIONS ARE, IF WE HAVE TO PULL FROM SOMEWHERE ELSE, OR IF WE CAN FIGURE OUT A WAY TO, TO SQUEEZE OUT THAT ADDITIONAL 1% FOR, WHAT WOULD THAT BE? APPROXIMATELY? MAY, JUNE, JULY, AUGUST, SEPTEMBER.
UH, WITH, JUST FOR CLARIFICATION ON THAT, UH, TOPIC WITH THINGS LIKE THAT, IS THAT, IS THAT SOMETHING THAT IF WE PUT IT IN STONE AT THIS POINT AND ALL OF A SUDDEN WE DO HAVE A DOWN, AN ADDITIONAL DOWNTURN IN SALES TAX OR SOMETHING UNEXPECTED, IS THERE FLEXIBILITY ON SOMETHING LIKE THAT? ARE WE CREATING A SCENARIO WHERE WE'RE MAKING EVERYONE EXPECT EXTRA 1% AND THEN ALL OF A SUDDEN WE'RE PULLING IT BACK BECAUSE MM-HMM.
I JUST, I'D BE SURE NO WORRIED ABOUT THAT.
NO, IT'S, IT'S A VERY, VERY FAIR QUESTION.
YOU KNOW, I, I DON'T THINK, UM, AND IT'S ALL IN, IT'S ALL IN THE WAY WE PRESENT IT.
I MEAN, THIS, YOU KNOW, I I IT, ANY EMPLOYEE THAT MIGHT BE WATCHING
AND SO MAYOR, YOU KNOW, TO YOUR POINT, IF, IF THE, IF THE DIRECTION FROM THE COUNCIL WAS EXPLORE IT AND PUT IT IN AS A CONTINGENCY, AND AS LONG AS EVERYTHING IS PERFORMING THE WAY WE EXPECTED OR PERFORMING BETTER, THEN IT COMES, IT BECOMES TRUE ON FOUR ONE.
BUT IF FOR SOME REASON IT DOESN'T, AND YOU KNOW, WE'RE HAVING ISSUES WITH SALES TAX OR OTHER REVENUE, THEN WE RETHINK IT, THEN THAT'S, YOU KNOW, I, I GUESS TO ANSWER YOUR QUESTION, IT'S ALL IN THE WAY THAT, THAT CONTEXTUALLY WE, YOU KNOW, WE FRAME IT WITH THE, WITH THE STAFF AND WITH, TO, TO WHAT THEY BELIEVE, BUT FROM A PROCEDURAL OR A, UM,
[01:25:01]
FINANCIAL MANAGEMENT STANDPOINT, WE HAVE THE LATITUDE TO ABSOLUTELY PULL BACK ON EXPENDITURES IF, IF WE NEED TO ON, ON IN PARTICULAR ON ANYTHING THAT IS A FUTURE INCREASE.I JUST, YOU KNOW, I WATCHED WHAT HAPPENED TWO YEARS AGO, AND, AND OBVIOUSLY NOBODY WANTS TO SEE THAT.
AND I KNOW WE'RE BEING EVEN MORE CONSERVATIVE THAN WE HAVE BEEN IN THE PAST, BUT I, I, THAT WOULD BE MY BIGGEST CONCERN IS JUST IF ALL OF A SUDDEN THERE'S SOME UNEXPECTED THING, THEN ALL OF A SUDDEN WE'RE, YOU KNOW, TRYING TO REEL AND AT THAT POINT WE START PLAYING WITH VACANCIES POTENTIALLY, WHICH IS OBVIOUSLY ALSO NOT THE OTHER DIRECTION WE WANT TO GO.
I SAW, UH, COUNCIL MEMBER CORCORAN, I THINK YOU WERE UP.
NOTHING THAT I JUST WANNA SAY, I MEAN, FROM A, FROM A COST BENEFIT STANDPOINT AS WELL, UM, WITH SOME OF THAT LEGISLATION ABOUT THE NO NEW REVENUE RATE, IF WE DON'T GET OUR, IF WE DON'T GET OUR OWN, UH, AUDITS DONE ON TIME MM-HMM
RIGHT? I MEAN, I WOULD HATE TO SEE FINANCIAL STAFF TURN OVER MM-HMM
AND THEN IN A WAY, WE, WE COULD HAVE JUST SPENT A LITTLE BIT MORE TO KEEP THEM ON.
WE MAY HAVE, YOU KNOW, NOT FALLEN BEHIND ON, ON AN AUDIT AND THEREFORE, YOU KNOW, HAVE TO ADOPT THE NO NEW REVENUE RATE.
SO, UM, SOMETHING I'VE TOLD YOU, DON, IN OUR ONE-ON-ONE MEETINGS TOO, IS, YOU KNOW, HEY, FOR SOME OF THE STUFF TO WORK, IF THERE'S A SACRED CO OR TWO YOU HAVE TO PRESENT TO US FOR CONSIDERATION, YOU KNOW, I'M FINE WITH THAT TOO.
SO ALL THAT JUST IN SUPPORT OF WHAT COUNCIL MEMBER, OR SORRY, WHAT MAYOR PRO, TIM HUTCH, RIDER, UM, WAS JUST SAYING THANK YOU COUNCIL MEMBER MSO.
UH, YOU KNOW, I KNOW THIS IS VERY TOUGH HERE.
UH, YOU KNOW, I WOULD LIKE TO SEE THAT, YOU KNOW, ONCE THIS HAPPENED, THAT WHAT HAPPENED TO THE, UH, WHAT HAPPENED TO THE BENCHMARK, YOU KNOW, ARE WE STILL FALLING BEHIND? THAT'S, THAT'S MY NEXT SLIDE.
SO I WAS HOLDING MY QUESTION FOR THAT.
BUT, YOU KNOW, I DON'T WANT TO SEE THAT WE ARE FALLING BEHIND.
RIGHT? THAT'S NUMBER ONE, BECAUSE LOSING, YOU KNOW, ONE, ONE EMPLOYEE IS GONNA COST US PROBABLY AT LEAST TWO EMPLOYEE DOWN THE ROAD.
SO, AND ALSO I'M NOT IN FAVOR OF SUPPORTING THAT.
IF SOMETHING HAPPENED DOWN THE ROAD, WE'RE NOT GOING TO GIVE RAISE BECAUSE OF THE CONDITION.
I WOULD RATHER TOUCH SOME OTHER BUDGET.
I WOULD MAKE THIS SEEM MORE PREDICTABLE BECAUSE LOTS OF PEOPLE, THEY'RE GONNA BE BUDGETING THEIR YEAR BASED ON THIS INFORMATION.
WE CAN'T KEEP THEM HANGING MM-HMM
BECAUSE, YOU KNOW, THIS MIGHT OR MIGHT NOT HAPPEN.
THIS IS NOT GOOD PRACTICE AS A BUSINESS OWNER.
UH, SO YES, I, I'M INTERESTED TO SEE THAT 2.5, YOU KNOW, HOW THAT IMPACT, YOU KNOW, THE, ON THE TOTAL CHART MM-HMM
2.5 LOOKS LIKE IT, THEY'LL BE FALLING BEHIND TOO.
AND GETTING GENERAL PERSONAL IS ALSO VERY TOUGH.
SO, SO I, I'LL BE SUPPORTING 3.5 DEFINITELY.
BUT, BUT AGAIN, YOU KNOW, 4.5, IF THIS IS TOO LOW, WE NEED TO THINK ABOUT HOW WE CAN MAKE IT GO CLOSER TO THE, THE TARGETED RANGE THAT WE TALK ABOUT.
SO I'M HOLDING A FEW MORE QUESTIONS BASED ON THE NEXT FEW, FEW MORE SLIDE.
I, I MEAN, I DON'T THINK, IT'S NO SECRET THIS, AND PREVIOUS COUNCILS, AS FAR AS LONG AS I'VE BEEN WATCHING, COUNCILS HAVE ALWAYS, UH, DONE THEIR BEST TO TAKE CARE OF EMPLOYEES, AND WE WANT THE BEST EMPLOYEES.
AND RICHARDSON HAS ALWAYS BEEN PROUD OF NOT HAVING TO LAY PEOPLE OFF AND MM-HMM
THERE'S THE REASON WE HAVE SO MANY STICKING AROUND THAT COULD RETIRE TOMORROW.
UH, BECAUSE WE'VE, WE'VE, UH, AS A CITY HISTORICALLY, DON IN PREVIOUS CITY MANAGEMENT HAS DONE A GOOD JOB AT MAKING SURE THEY'RE TAKEN CARE OF.
WE HAVE TOP QUALITY EMPLOYEES BECAUSE OF THAT, UH, EARLIER WHEN YOU FIRST MENTIONED, AND OF COURSE, I, I THINK I, AND EVERYBODY WOULD PROBABLY S SUPPORT IF IT MAKES SENSE.
AND EARLIER WHEN YOU FIRST INTRODUCED IT, YOU, WHEN YOU WERE TALKING ABOUT GENERAL PERSONNEL, YOU TALKED, YOU KIND OF BRIEFLY MENTIONED AND JUMPED OVER, UH, YOU DID NOT GO BIGGER BECAUSE OF COMPRESSION.
SO I'D LIKE FOR YOU, AS WE TALK ABOUT THIS, IF YOU CAN GO FURTHER INTO THAT AND WHAT YOU MEANT BY THAT STATEMENT EARLIER TODAY, SO WE CAN MAKE SURE IT'S NOT JUST A, HEY, WE WANT TO TAKE CARE OF PEOPLE.
LET'S PICK A NUMBER OUTTA THE YEAR AND GO 4.5.
BUT IT MAKES SENSE SO THAT YOU'RE NOT FACED IN A YEAR FREEZING A BUNCH OF JOBS, OR EVEN WORSE, TELLING PEOPLE THAT THEY NO LONGER HAVE A JOB BECAUSE SOMETHING DIDN'T ME.
SO WE WANNA BE STRATEGIC AND SMART ABOUT IT.
'CAUSE WE WANT TO, UM, RESPECT THAT PEOPLE DO HAVE BILLS TO PAY AND THEY NEED A JOB.
SO WE HAVE TO, UM, BUT CAN YOU SPEAK TO IT NOW OR WHEN WE LOOK AT THAT IN THE FUTURE? SURE.
WHENEVER THAT YOU FEEL IS APPROPRIATE TIME, YOU TALK ABOUT THAT COMPRESSION SIDE AND WHAT THAT COMMENT WAS YOU MENTIONED EARLIER.
UH, THANK YOU FOR THE QUESTION.
UM, SO COMPRESSION, UM, IS NOT AN ISSUE IF YOU'RE PROVIDING EVERYONE WITH THE SAME INCREASE.
UM, THE RE THE, THE, THE POINT I WAS MAKING ON THE COMPRESSION IS, UM, YOU KNOW, IF WE, IF WE WENT FROM A 20 TO A $23 INCREASE FOR THE ENTRY LEVEL POSITION
[01:30:01]
TO A, THE STARTING SALARY FOR AN ENTRY LEVEL POSITION, UH, YOU MIGHT HAVE SOMEBODY WHO WAS HERE FOR THREE YEARS, UM, WHO IN THE PRIOR SALARY RANGE MAY BE AT $23.AND SO NOW YOU HAVE A BRAND NEW EMPLOYEE WHO'S MAKING THE SAME AS THAT, THAT 23 DO THAT.
THE EMPLOYEE THAT'S BEEN HERE FOR THREE YEARS MAKING $23 BECAUSE WE DID SUCH A LARGE INCREASE IN THAT ONE YEAR.
AND SO, BUT IF YOU, IF YOU APPLY A, UM, EQUAL, UH, PERCENT INCREASE ACROSS THE BOARD TO ALL EMPLOYEES, THEN YOU'RE ABLE TO AVOID THE COMPRESSION.
SO COUNCIL MEMBER BARRIOS, UH, IF YOU JUST LOOK EVEN AT THE SUGGESTION HERE OF $20 PER HOUR GOING UP TO $21 AN HOUR, IT'S A 5% INCREASE.
BUT WE'RE SAYING EVERYBODY ELSE GETS TWO AND A HALF.
SO IF JUST THE $20 GUY GETS A 5% AND EVERYONE ELSE ONLY GETS TWO AND A HALF, THAT'S WHERE COMPRESSION STARTS TO HAPPEN.
IT'S NOT NEAR AS BAD AS IF YOU WENT TO 22 OR 23, WHICH WOULD BE A 10 OR 15% INCREASE.
BUT THAT'S, THAT'S I THINK ULTIMATELY WHERE THE NUMBER COMES IN.
YEAH, NO, AS A, AS A, UH, WELL, RECENTLY RETIRED TEACHER, UH, I TOTALLY UNDERSTAND COMPRESSION.
I JUST DIDN'T UNDERSTAND WHAT HIS COMMENT WAS EARLIER.
UM, YOU SAID EARLIER THAT SB NINE WOULD RESULT IN $1.8 MILLION DECREASE.
IS THAT WHAT YOU SAID? UM, THE, THE BILL THAT'S PROPOSED IN THE, YEAH, WELL, IT'S, UH, IT WAS 1.8 MILLION TOTAL BETWEEN THE ADDITIONAL EXPECTED LOSS OF REVENUE FROM FRANCHISE, UH, THE BPP BILL AND THE SB NINE.
WELL, I JUST THINK THAT THAT'S IMPORTANT TO POINT OUT IN CONTEXT OF WHAT WE'RE TALKING ABOUT HERE, $3.7 MILLION AND 1.8.
I MEAN, THAT'S, THAT'S HALF OF THE TOTAL THAT THEY'RE TALKING ABOUT BETWEEN THOSE TWO BILLS TAKING AWAY FROM, FROM, FROM CITIES TO BE ABLE TO OPERATE.
SO, UM, AS ALWAYS, I SUPPORT MAKING SURE THAT WE CONTINUE TO RECRUIT AND RETAIN, UH, AMAZING FIRST RESPONDERS AND, AND GREAT PERSONNEL.
UM, SO I'M, UM, IN FAVOR OF THIS.
AND TO THE EXTENT IT'S POSSIBLE, OBVIOUSLY, AS COUNCILMAN HUT HAS POINTED OUT, YOU KNOW, IF, IF THERE'S A WAY TO COMMUNICATE IT WELL, AS THE MAYOR HAS SAID, UH, 1% IN MIDYEAR OR SOMETHING LIKE THAT, UM, I, YOU KNOW, WOULD BE FINE.
I'M EXPECTING WE'RE GONNA SEE A LOT OF PLACES WHERE THAT ONE PERCENT'S GONNA BE NEEDED.
UM, BUT, YOU KNOW, I, I THINK IT'S WORTH, YOU KNOW, YOU GOING BACK AND, AND HAVING THAT CHALLENGE, BUT, YOU KNOW, I JUST THINK THE PUBLIC REALLY NEEDS TO UNDERSTAND HOW BIG AN IMPACT THIS SPECIAL SESSION COULD POTENTIALLY HAVE ON JUST THIS SLIDE ALONE.
SO THE 3.712 THAT'S SHOWING THERE, THAT'S AN INCREASE YEAR OVER YEAR IN, IN TOTAL? UH, YES, SIR.
UM, AND THE CONTEXT OF THE OVERALL REVENUE THUS FAR, YEAR OVER YEAR WAS, WHAT WAS THE DELTA YEAR OVER YEAR FOR PROPERTY TAX, JUST OVERALL? UH, OR HAVE YOU NOT SHOWN AN OVERALL NUMBER YET? TOTAL, TOTAL TOTAL REVENUE.
TOTAL REVENUE, UH, FOR FYI 26 OVER 25 IS WHAT, 5 78.
SO, SO WE HAVE, SO, SO, SO WE HAVE 3.2 IN CUTS ROUGHLY TO MAKE THIS WORK? WELL, NOT EX NOT EXACTLY.
BUT YOUR, YOUR QUESTION IS ABSOLUTELY ON, AND, YOU KNOW, UH, I WOULD, I VERY, VERY MUCH APPRECIATE THIS, UM, THIS DISCUSSION.
HOWEVER, UM, I WOULD SAY THE, THE, WHAT I WOULD OFFER IS THIS, UM, YOU KNOW, COUNCILMAN CORCORAN, YOU KNOW, TO, TO THE, TO THE ADDITIONAL CUT QUESTION.
UM, WE, THERE, THERE ARE LIMITED, LIMITED OPPORT, LIMITED LIMITED OPTIONS, AND THEY'RE ALL OUTWARD FACING, UM, FROM A, FROM, AND YOU'LL, YOU'LL SEE THIS IN A SECOND AS WE GET TO IT FROM A ORGANIZATIONAL STANDPOINT.
UM, YOU KNOW, OUR DEPARTMENTS HAVE DONE AN AMAZING JOB.
I MEAN, FIRE DEPARTMENT IS 0.6% YEAR OVER YEAR.
UM, AND MAYOR, TO YOUR POINT WHERE SOME OF THAT SAVINGS COMES FROM, AND WE'LL GET THERE IN JUST A SECOND MORE, SOME OF THAT SAVINGS COMES FROM IS THOSE 27, 28, I THINK, RETIREMENTS IN POLICE AND FIRE THAT HAD OFFICERS AND OTHER FIREFIGHTERS AND OTHERS THAT WERE TOPPED OUT BEING REPLACED BY LOWER SALARIED EMPLOYEES.
SO THAT'S A BIG SAVINGS TOWARDS THAT.
BUT, UM, I, I JUST WANT TO, UM, I, I FEEL LIKE I HAVE, I AM TAKING THE HOMEWORK.
LIKE I, I, I COMMITTED TO EVALUATING IT, BUT I WANT YOU GUYS TO KNOW, AND I WANT OTHERS IN THE AUDIENCE TO HEAR, I PUSHED REALLY, REALLY HARD TO GET TO THIS POINT NOW.
I MEAN, REALLY, I PUSHED REALLY, REALLY HARD TO GET TO THIS RECOMMENDATION.
AND, AND THERE IS, INTERNALLY, THERE'S NOT A LOT OF LE THERE'S NOT A LOT OF KNOBS TO TURN.
WE REALLY START GETTING TO THE EXTERNAL KNOBS OF THINGS LIKE, UM, YOU KNOW, EVENTS OR OUTWARD FACING SERVICES THAT WE PROVIDE TO BUSINESSES OR RESIDENTS OR THINGS OF THAT NATURE.
IF THAT'S WHAT YOU WANNA EXPLORE, I'M ALL ABOUT IT.
WE'LL TAKE IT AS HOMEWORK TONIGHT, WE CAN START TOMORROW'S CONVERSATION WITH THAT.
UM, BUT, UM, JUST FELT LIKE I WANTED TO JUST, WE, WE, WE WILL EVALUATE THE 1% AS I DO THE QUICK MATH IN MY HEAD HERE.
YOU KNOW, WE'RE TALKING, YOU KNOW, MAYBE, YOU KNOW, $220,000,
[01:35:01]
UM, YOU KNOW, MAYBE $440,000 FOR ANOTHER PERCENT, UM, IN HALF YEAR, THAT'D BE THE TWO 20.SO, YOU KNOW, IT'S NOT, IT'S DOABLE.
BUT I DO WANNA PROVIDE YOU WITH A LITTLE BIT OF CONTEXT ON, YOU KNOW, WHAT MIGHT, WHAT MIGHT WE CONSIDER? BECAUSE RIGHT NOW, THE, RIGHT NOW IN THIS BUDGET, EVERY DOLLAR THAT WE SPEND, IT'S A, IT'S JUST A LEDGER.
THERE'S A DOLLAR THAT HAS TO COME OFF OF SOMETHING THAT WE'RE DOING TODAY.
THAT'S KIND OF WHERE WE ARE IN THIS BUDGET.
NOT TO MENTION THE TWO 20 IMPACT THIS YEAR WOULD BE A FOUR 40 IMPACT NEXT YEAR PLUS WHATEVER ADDITIONAL RAISE WE GIVE.
SO WE JUST NEED TO BE REAL CAUTIOUS.
I THINK WE ALL ARE WELL-MEANING IN OUR DESIRES TO SEE MORE AND MORE PERCENTAGE POINTS.
BUT I THINK WHAT I'M HEARING IS THAT YOU'VE SQUEEZED REALLY HARD TO FIGURE OUT HOW TO PUT THIS IN FRONT OF US WITH A KIND OF, ALMOST A MAXIMUM REQUEST, BUT WE'LL BRING BACK OPTIONS.
WE'LL, JUST TO, JUST TO HAVE TO FURTHER THAT CONVERSATION AND MAKE SURE THAT EVERYBODY'S, LET ME, LET ME SHARE WITH YOU IF, IF YOU DON'T MIND, WHERE THIS DOES, WHERE THESE CHANGES DO PUT US.
UM, SO THE FOUR POINT A HALF PERCENT, AS YOU CAN KINDA SEE, SO THIS IS A LITTLE DIFFERENT CHART.
SO IF AS YOU LOOK IN THE, UM, YOU EITHER GET MINIMUM ON THE LEFT, MAXIMUM ON THE RIGHT, THE FIRST COLUMN IS THE MINIMUM PAY, AND THAT'S THE BELOW RANK NUMBER FOUR.
SO EVERY, EVERYWHERE YOU SEE A DASH, THAT'S A GOOD THING.
UM, ON THE MAXIMUM SIDE, YOU SEE THE PERCENT CORE MAXIMUM PAY BELOW RANKED NUMBER FOUR.
AND YOU SEE SOME EXTREMELY LOW NUMBERS THERE.
AND, UM, SO, UM, AND, AND YOU SEE ON, IN, IN THE GRAY THE PERCENT THAT WERE ABOVE THE, THE RANK NUMBER FOUR.
AND SO THE 4.5% WAS, UM, YOU KNOW, IT WAS A NUMBER THAT I, I I, I SETTLED ON.
AND AGAIN, IT'S A COCKTAIL OF A LOT OF THINGS 'CAUSE THERE'S THE, THERE'S THE STEPS AS WELL, RIGHT? AND SO, I MEAN, I, I WANNA BE JUST MINDFUL OF, UM, I CAN'T REMEMBER THE EXACT NUMBER, BUT HUNDREDS OF HUNDREDS OF EMPLOYEES IN PUBLIC SAFETY ARE GONNA ACTUALLY PERCEIVE A 9.5% BECAUSE THEY'RE IN THEIR STEP RANGE.
UM, I HAD TO BALANCE THAT WITH THE GENERAL EMPLOYEES.
UM, AND SO THAT WAS WHERE I ENDED ON THE 4.5.
UM, AND, UH, APPRECIATE VERY MUCH THE FEEDBACK THAT, THAT, UM, YOU KNOW, I VALUE VERY MUCH THE RELATIONSHIP WE HAVE WITH BOTH POLICE AND FIRE.
UM, APPRECIATE THEIR FEEDBACK.
AND I FEEL LIKE, YOU KNOW, WE'VE BUILT SOMETHING THAT'S RESPONSIVE, UH, AND I FEEL LIKE THEY UNDERSTAND WHAT WE WERE TRYING TO ACCOMPLISH, UM, WITH THE 4.5%.
BUT THIS IS THE RANKING, AGAIN, IT'S A POINT IN TIME, UH, BUT THIS IS THE RANKING, UM, THAT THE 4.5% INCREASE, UM, BY APRIL ONE.
THIS IS WHERE WE WOULD BE IF EVERYTHING ELSE REMAINED THE SAME, DOES IS THE 2.6 OR THE 2.3, LET'S SAY ON THE MINIMUM OR THE 0.04.
SO THAT'S, THAT'S HOW MUCH DIFFERENCE THE SALARY IS COMPARED TO RANK NUMBER FOUR.
THAT'S THE PERCENT BELOW RANK NUMBER FOUR.
AND, AND MAYOR, THAT'S A, YOU, THERE'S ALWAYS SOMETHING ABOUT CAPTAIN AND CHIEF AND I TALK ABOUT, THERE'S ALWAYS SOMETHING ABOUT CAPTAIN AND HE CAN EXPLAIN IT BETTER THAN I, UM, I'M NOT GONNA SAY THAT CHIEF'S NOT CONCERNED WITH IT, BUT IN THE PROGRESSION THROUGH THE FIRE DEPARTMENT, THE CAPTAIN MINIMUM IS ALWAYS ONE THAT SEEMS TO BE A LITTLE BIT OF AN OUTLIER.
IS THAT TRUE? IT REGULARLY IS OUTLIER AND IT, IT'S HARD TO UNDERSTAND, QUITE FRANKLY, AROUND THE CITIES, BUT IT, I THINK A LOT IT HAS TO DO IN THE OTHER CITIES ABOUT THEIR COMPRESSION AND, UM, THEY'RE JUST ALWAYS HIGHER
IT'S HARD TO EXPLAIN, BUT IT'S REGULARLY, IT'S HIGHER.
SO IN REAL DOLLARS, THE DIFFERENCE BETWEEN, UH, THE 0.2, LIKE WHAT 0.23 EQUALS, IS THAT FIVE GRAND A YEAR? NO, NO, NO.
UM, LET'S SEE, KEN, DO YOU HAVE THAT HANDY? DO YOU HAVE THAT HANDOUT HANDY? I'M NOT.
I'M JUST, I'M ASKING MAYOR, WE'VE GOT, WE WE HAVE THAT.
SO, UH, WE'LL TAKE FIRE CAPTAIN, WHICH, UH, OR EVEN FIREFIGHTER, WHICH IS 2.6%, RIGHT? WHICH IS THE BIGGEST, SO 2.6%, WHAT IS THAT IN REAL DOLLARS? UM, AND THAT'S OUR RANK BELOW NUMBER FOUR.
SO TO BE NUMBER FOUR, HOW MANY MORE DOLLARS WOULD YOU GET IF YOU WERE AT THE NUMBER FOUR CITY? UH, LET'S SEE, 27, 24 A YEAR.
I, I JUST, I THINK THAT'S HELPFUL TO KNOW.
THAT'S NOT TO DIMINISH THE DELTA, BUT YOU KNOW, WE, WE ALL WORK, ALL OF US HAVE A JOB, UH, UH, UH, SADLY OR NOT SADLY.
AND, AND SO, YOU KNOW, THE QUESTION BECOMES, DO YOU, DO YOU MOVE FROM ONE COMPANY TO ANOTHER FOR AN ADDITIONAL $2,700 PER YEAR? AND FOR SOME OF US, YES, SOME OF US MAYBE, NO, BUT THIS IS, IT'S, IT'S HELPFUL TO KIND OF GET A SENSE FOR, UH, DESPITE
[01:40:01]
IT NOT BEING, UH, FLAT OR ABOVE THE NUMBER FOUR, IT'S, IT'S, IT'S STILL TIGHT, RELATIVELY TIGHT.EVEN WHEN WE DID THE 6%, IT IS RARE THAT YOU'RE GONNA GET EVERYBODY IN THE CREDIT OVER THE YEAH.
I MEAN, IT'S, IT'S JUST PERFECT.
AGAIN, SERGEANT, UH, AND GARY AND I HAVE TALKED ABOUT THIS MANY TIMES, SERGEANT TENDS TO BE, UH, AN OUTLIER AND I BELIEVE IT'S THE INTERNAL COMPENSATION STRUCTURE, UM, THAT THEY HAVE BUILT.
AND, AND GARY, YOU MIGHT WANT TO TALK, LIKE, FOR INSTANCE ON SERGEANT, I MEAN, UM, THERE'S GOTTA BE, THERE'S A, THERE'S GOTTA BE A REASON FOR PEOPLE TO WANT TO PROMOTE UP, RIGHT? WELL, THAT'S, THAT'S EXACTLY RIGHT.
AND SO WE HAVE SEEN AN INCREASE IN INDIVIDUALS WANTING TO PROMOTE, AND THAT'S, THAT'S VERY REWARDING AND, AND, UM, WELCOMED.
BUT THAT IS VERY MUCH WHAT, WHAT DONNA IS REFERENCING IN THAT SENSE.
BUT, UM, JUST HAVING THAT, THAT DELTA, THERE'S, IT'S, THERE'S GOTTA BE MORE SOMETIMES THAN JUST THE MONEY DIFFERENCE THAT IS WANTING TO MAKE THEM PROMOTE TO THAT SERGEANT POSITION BECAUSE, UM, THAT TOP OUT PAY AS AN OFFICER, UM, IS PRETTY REWARDING.
BUT THEN YOU MAKE THAT NEXT STEP AND TAKE ON ADDED RESPONSIBILITIES, AND THAT'S A CHALLENGE AS WELL.
YEAH, I MEAN, I, I DON'T KNOW THAT, YOU KNOW, AND I BELIEVE THAT AS I'VE TALKED, YOU KNOW, AND, AND, AND, AND REALLY TRIED TO HAVE A OPEN DIALOGUE WITH POLICE AND FIRE OVER THE YEARS, I DON'T KNOW THAT THERE'S AN EXPECTATION THAT EVERY POSITION IS GONNA BE IN THE GRAY.
YOU KNOW, I THINK, YOU KNOW, FIRST AND FOREMOST WHEN I TALK WITH HIM, STEPS IS THE HIGHEST PRIORITY THAT'S IN THE BASE BUDGET TODAY.
THAT'S NOT, THAT'S NOT EVEN, THAT'S NOT EVEN BEING DEBATED.
BUT MY PRESENTATION TO YOU, I WASN'T DEBATING STEPS.
IT'S IN THE BUDGET, THESE OTHER FACTORS.
UM, YOU KNOW, MAYOR, TO YOUR POINT, I MEAN, I BELIEVE IF WE CREATE THE KIND OF PLACE THAT PEOPLE WANT TO BE PART OF, WE HAVE GOOD LEADERS LIKE WE HAVE, AND WE TREAT PEOPLE, YOU KNOW, WITH RESPECT, AND WE, THEY KNOW THAT THEY'RE APPRECIATED AND VALUED THAT, YOU KNOW, THEY, THEY, THEY MIGHT NOT LEAVE FOR A COUPLE OF THOUSAND DOLLARS, RIGHT? THEY'RE GONNA BE ONE OR TWO THAT PROBABLY WILL.
UM, BUT YOU KNOW, IT'S, IT'S, WE'VE GOTTA PROVIDE THE, THE TOTAL, THE TOTAL PACKAGE.
AND I BELIEVE THAT, YOU KNOW, IF THEY KNOW THAT WE'RE WORKING HARD WITHIN THE CONTEXT OF THE, THE CIRCUMSTANCES THAT WE'VE BEEN DEALT WITH.
AND JUST SO YOU KNOW, I, I DID SIX OR SIX OR SEVEN TOWN HALL MEETINGS WHERE, UM, WE MET WITH OVER 700 EMPLOYEES I MET WITH OVER 700 EMPLOYEES THIS, THIS EARLY SUMMER TO SO THAT THEY WOULD UNDERSTAND THE CIRCUMSTANCES THAT WE WERE PRESENTED AND THAT, AND WHAT WE'RE TRYING TO DIG OUT OF HERE ESSENTIALLY.
AND, UM, MUCH, MUCH OF THE EARLIER BACKGROUND I GAVE TO THEM, UM, UM, SO THAT THEY COULD HAVE THAT CONTEXT AS WELL.
AND SO, YOU KNOW, IS IT THE PERFECT PLAN? PROBABLY NOT, BUT I FEEL LIKE IT'S A GOOD PLAN.
SO DON, JUST TO MAKE SURE WE TO LEVEL SET THIS, WHAT RATE DO YOU ASSUME OUR COMPETITORS, IE THE OTHER CITIES MM-HMM
ARE GONNA PUT IN? BECAUSE ARE YOU SAYING THAT THIS IS JUST PURELY IF WE DO THE FOUR POINT A HALF PERCENT, WHICH IS THE TWO AND A HALF AND THE TWO, NOBODY ELSE MOVES AND THAT'S WHERE WE'RE SITTING? YES.
SO THAT'S REALLY NOT, IN FAIRNESS, THAT'S REALLY NOT A REALISTIC, SOMETHING WE CAN COUNT ON.
'CAUSE WE KNOW ALL THE OTHER CITIES ARE GONNA DO SOMETHING NOW IT COULD RANGE ANYWHERE.
JUST LOOKING AT YOUR CHART AGAIN FROM TWO POINT A HALF TO POTENTIALLY 4%.
UM, SO IF THEY DO THAT, THEN WE WON'T BE, I UNDERSTAND WHAT, I UNDERSTAND WHAT YOU'RE SAYING AS FAR AS WHEN YOU SAY IT'S A POINT IN TIME, BUT IN FAIRNESS IT WILL, WE'LL, WE'LL DROP BACK DOWN AGAIN.
IS THAT CORRECT? THAT IS THE RHYTHM EVERY YEAR.
I MEAN, YOU KNOW, 'CAUSE WE DON'T, AND I'M NOT PICKING, I'M JUST TRYING TO MAKE SURE EVERYBODY UNDERSTANDS THAT, THAT JUST BECAUSE WE DO THE FOUR AND A HALF, THE TWO AND A HALF AND THE TWO THAT WE CAN ALL YEAR SIT, SIT AND THINK IN OUR MINDS THAT OUR OFFICERS ARE GONNA BE FOURTH OUT OF 13TH, MOST LIKELY THEY WILL DROP BACK DOWN AGAIN DEPENDING ON WHAT THE OTHER CITIES DO.
SO THAT'S, THAT'S THE CONCERN I HAVE WHEN, WHEN WE TALK ABOUT, WELL, ARE THEY GONNA MOVE FOR $2,500? IT MAY BE DOUBLE THAT.
IT MAY BE FIVE GRAND, IT MAY BE SIX GRAND DEPENDING ON WHAT OTHER CITIES DO.
AND I KNOW IT'S A GUESSING GAME, AND I UNDERSTAND THAT.
I, TRUST ME, I DEAL WITH THIS EVERY DAY OF THE WEEK.
BUT I JUST WANT PEOPLE TO UNDERSTAND THAT THIS DOESN'T, I DON'T WANNA SAY IT, IT DOESN'T, THIS DOESN'T LOCK US FOR THE NEXT SIX MONTHS OR A YEAR.
THAT'S ALL I WANNA TRY TO SAY.
AND, AND NO, YOU'RE ABSOLUTELY RIGHT.
I MEAN, YOU KNOW, OTHERWISE THEN OTHERWISE YOU'RE RIGHT.
WE'RE, WE'RE, WE'RE PROPOSING INCREASES.
UM, AND, AND, AND WITH A, YOU KNOW, WITH IMPERFECT INFORMATION.
'CAUSE WE DON'T KNOW WHETHER, YOU KNOW, A MANAGER'S GONNA MOVE FORWARD WITH WHAT THEY TELL US ON A SURVEY OR THAT THE COUNCIL'S GONNA APPROVE IT.
YOU KNOW, ALL THOSE THINGS ARE NO, NO, I UNDERSTAND.
ALL THOSE THINGS ARE VARIABLES, BUT YEAH, YEAH.
NO, I, AND I UNDERSTAND IT'S ALL YOU CAN DO.
I'M NOT, I'M NOT PICKING, I JUST WANNA MAKE SURE EVERYBODY UNDERSTANDS WHAT WE'RE LOOKING AT AND THAT THIS, THIS IS STATIC, THIS IS NOT YES, SIR.
IF ALAN, FOR EXAMPLE, I THINK IT WAS ALAN SAID THEY WERE GONNA PUT IN 4% FOR POLICE AND FIRE IF THEY DO 4%.
[01:45:01]
IN REALITY, THIS REALLY ON A YEARLY BASIS, IT REALLY WORKS OUT TO BE IN A THREE POINT A HALF PERCENT INCREASE FOR THEM.FOR THE, IF SOMEONE IS STARTED IS ON, ON THE PAYROLL OCTOBER 1ST AND IS ON THE PAYROLL AS OF SEPTEMBER 30TH, IT'S REALLY A THREE.
IT'S REALLY, UH, A REALIZED, UM, THREE POINT A HALF PERCENT RAISE FOR THE YEAR.
BECAUSE THE FACTOR FACTOR, YEAH.
IF YOU FACTOR, 'CAUSE IT'S ONLY A SIX MONTH, THE 2% WILL ONLY FACTOR ON SIX MONTHS.
THE DIS YOU KNOW, THE DISCUSSION THAT I HAD WITH, WITH, WITH, UM, YOU KNOW, WITH GARY AND, AND CURTIS AND, AND, AND, AND THE POLICE AND FIRE WAS, YOU KNOW, IT'S MORE IMPORTANT TO GET, UM, TO GET THE RANGE ADJUSTED, EVEN IF THAT OCCURS IN APRIL.
IT'S MORE IMPORTANT TO HAVE THAT LOCKED IN AND THAT TO BE A PERMANENT, I MEAN, WE, YOU KNOW, TO YOUR POINT, UM, COUNCIL, UH, MAYOR
UM, THIS IS A CHART AGAIN THAT YOU'VE NEVER SEEN BEFORE.
WHAT I WANTED TO JUST SHARE WITH YOU AND WHY I'M STRETCHING TO GET TO THE 4.5% EVEN BY APRIL ONE, IS TAKE THE, TAKE THE POLICE OFFICER RANKING FOR INSTANCE.
NOW THE FIRST ROW IS WHAT WE ACT WHAT YOU ACTUALLY APPROVED 6% IN 23, 6% IN 24 AND 20 IN AND 3% IN 25.
THAT PUT US AT A RANKING AT THE END OF FY 25, AT FIVE OUTTA 13.
WHEN, WHEN YOU ADOPTED THE BUDGET LAST YEAR, WE WERE FIVE OUTTA 13.
IF YOU WOULD'VE JUST DONE 1% LESS EACH YEAR, WE WOULD ACTUALLY HAVE BEEN NINE OUTTA 13 LAST YEAR.
WHEN YOU ADOPTED THE BUDGET, THAT'S JUST 1% LESS A YEAR.
THAT'S BECAUSE IT HAS A COMPOUNDING EFFECT.
LOOK AT THE PERCENT BELOW NUMBER FOUR, IT GOES FROM 4% TO 7%.
IT'S EIGHT, EIGHT OUTTA 13 TO 11 OUTTA 13.
SO AGAIN, THINKING ABOUT THE COMPOUNDING EFFECT IN THE LONG TERM, UH, VIEW, VIEW OF, OF WHAT WE'RE TRYING TO ACCOMPLISH ON THE COMP SIDE, I FELT IT WAS IMPORTANT TO GET IT TO THE 4.5%.
EVEN IF THAT OCCURRED ON APRIL ONE, THE NEXT YEAR, THAT FOUR POINT A HALF PERCENT IS FULLY REALIZED.
AND THE, THE THING THAT WE FOUND OURSELVES IN, I MEAN, YOU KNOW, HONESTLY, WHEN YOU TALK ABOUT 6%, 6%, 3%, WE SHOULD HAVE GAINED A LOT OF GROUND.
BUT WE, WE, WE WERE STARTING FROM A, A VERY, UM, A, A VERY, A VERY, UM, DIFFICULT RANKING AND DIFFERENT DIFFICULT POSITION.
AND SO WHAT I'M TRYING TO ACHIEVE HERE WITH THE, THE A GETTING THE FOUR POINT A HALF PERCENT ADJUSTMENT BEING A PERMANENT ADJUSTMENT, EVEN IF IT OCCURS ON APRIL ONE, IS THAT STARTING THE NEXT YEAR, WE'RE, WE'RE, WE'RE NOT GONNA EXPERIENCE THIS KIND OF COMPOUNDING.
WE COULD DO 3%, FOR INSTANCE, ON 10.1 AND THEY WOULD BENEFIT FROM IT THE WHOLE YEAR.
BUT THE NEXT YEAR WHEN WE COME BACK, THERE'S GONNA BE A GAP AND THAT GAP IS GONNA BE EXASPERATED.
AND IF WE DO THAT TWO OR THREE YEARS, THAT'S REALLY HARD TO DIG OUT OF.
IT'S REALLY HARD TO, TO MAKE OUTTA THAT.
THAT, THAT'S THE REASON THAT I, I FULLY SUPPORT.
AND I FEEL LIKE RIGHT NOW WE'RE JUST LOOKING AT POLICE AND FIREFIGHTER.
BUT I THINK, YOU KNOW, WE RAN INTO THE SAME EXACT PROBLEM WITH, WITH OUR OVERALL ALL OF OUR EMPLOYEES.
THAT'S WHY I'M REALLY PUSHING HARD AND, YOU KNOW, SAY SHORT OF SOME HUGE CALAMITY.
MY MY MY PERSONAL OPINION IS WE NEED TO, WE NEED TO FIND THAT 1%, PUT IT IN AND, AND, AND IF WE HAVE TO GO SOMEWHERE, GO INTO ANOTHER BUCKET OR SOMEWHERE ELSE, I'D MUCH RATHER GO INTO ANOTHER BUCKET THAN, THAN TOUCH US.
I'D REALLY, YOU KNOW, BE ABLE TO SAY TO THE EMPLOYEES SHORT OF, I DON'T KNOW, YOU KNOW, SOME TYPE OF WHATEVER THAT WE REALLY WOULD STAY TRUE TO IT AND, AND, AND TRY TO DO THAT.
SO JUST MY THOUGHTS, THE, THE GOOD NEWS ON THE CARROLLTON SURVEY, ASSUMING EVERYONE GETS APPROVED AT THE NUMBERS THAT THEY'VE GOT THERE, AND WHAT YOU'RE PROPOSING IS WHEN IT'S ALL SAID AND DONE, WE AT LEAST MOVE A HALF POINT CLOSER TO WHEREVER ALAN IS AND ON EVERYBODY ELSE, WE'RE A POINT OR MORE, UH, IN TERMS OF EITHER CATCHING UP OR STAYING AHEAD.
AND SO OVERALL, THERE SHOULD BE VERY LITTLE MOVING BACKWARDS BASED ON THE FOUR POINT HALF PERCENT FROM WHERE WE ARE TODAY.
UH, AND, AND IT MAY ACTUALLY CATCH US UP, ALTHOUGH MAYBE NOT AS MUCH.
UM, UH, IT, IT DEFINITELY MOVES US AT LEAST BASED ON THE SURVEY.
SO LET'S, UH, GO OVER TO YOU, UH, COUNCIL MEMBER HUMMEL.
I THINK THIS IS MAYOR HAD EXPLAINED LITTLE BETTER WAY, UH, THE SITUATION.
I KNOW WE ARE ALWAYS TRYING TO CATCH, BUT WE ARE FALLING BEHIND EVERY, EVERY TIME.
BUT UNFORTUNATELY THE NUMBER WAS, THERE WAS A BIG GAP BEFORE, SO WE ARE TRYING TO CATCH, BUT AT LEAST THIS TIME, IF WE GO LIKE 4.5, WE'RE GONNA BE CLOSER.
UH, HOPEFULLY NEXT YEAR WE CAN MAKE IT UP.
UH, SO, BUT YOU KNOW, EMPLOYEE, THEY REALLY DON'T MOVE JUST BECAUSE OF TWO GRAND, THREE GRAND.
BUT THERE ARE OTHER FACTORS, BUT ALSO THEY NEED TO KNOW THAT WE ARE SERIOUS.
WE ARE MAKING IT UP EVERY YEAR.
AND IF THEY HAVE THAT TRUST, I THINK THAT'S, THAT, THAT'S IMPORTANT.
SO I THINK, UH, YEAH, I WISH WE
[01:50:01]
CAN DO BETTER THAN THAT, BUT, UH, LET'S SEE.WHAT'S YOUR NUMBER SAY? YEAH, THANK YOU.
I THINK ON, I THINK ON THAT POINT, IT WAS A POINT I WAS GONNA TRY AND MAKE A, A MOMENT EARLIER, BUT ON THAT POINT, I THINK YOU QUITE FRANKLY, UH, DAWN, HAVE DONE AN AMAZING JOB WITH OUR RANK AND FILE BOTH IN FIRE AND POLICE.
UM, I THINK A BIG PART OF IT IS, YOU KNOW, EFFORTS LIKE WHAT YOU'VE DONE WITH THE 6% RAISES IN THE PAST AND 4%, FOUR AND A HALF PERCENT IN THIS PARTICULAR CASE.
I THINK YOUR CREDIBILITY HAS REALLY BEEN AMAZING.
UM, OBVIOUSLY BOTH OF YOU CHIEFS HAVE DONE AN AMAZING JOB AS WELL, BUT I THINK FOR THE FIRST TIME, IN PROBABLY SOME TIME, ALL DUE RESPECT TO YOUR PREDECESSORS, UM, AT THE CITY MANAGEMENT LEVEL, THERE'S A CERTAIN TRUST THAT, UH, THAT'S THERE.
AND I THINK ALSO KIND OF HELPS THAT TURNOVER POSSIBILITY.
UM, SO THAT'S, THAT'S ALL GOOD STUFF AND REALLY APPRECIATE ALL THE INVESTMENT YOU PUT IN THERE.
COUNCIL MEMBER BARRIOS, YOU HAD A COMMENT? YEAH, ONE QUICK QUESTION, DON, AND I DON'T, I DON'T MEAN TO START ANYTHING BETWEEN THE TWO CHIEFS WITH THIS QUESTION, BUT I NOTICED THAT FIRE ARM WRESTLE FOR HALF, HALF A PERCENT
I NOTICED THAT FIRE, THE DIFFERENT, THE, THE, THE DIFFERENTIAL BETWEEN THE PERCENT BELOW RANK FOUR TENDS TO BE HIGHER HISTORICALLY.
AND WHAT WE SEE, IS THAT PRETTY TRUE? EVEN LOOKING FURTHER BACK? AND IF THAT'S THE CASE, GO, GO BACK TO THAT SLIDE.
BUT IF, IF THAT'S TRUE, YOU KNOW, 'CAUSE I'M LOOKING AT RANK BELOW 4%, YOU KNOW, FY 25, 10 0.43 VERSUS SEVEN POINT 10, THAT'S A DECENT AMOUNT OF DIFFERENCE THERE.
UM, IS THAT, YOU KNOW, I ALSO KNOW THAT WHEN WE TALK ABOUT, UH, STAFFING, IT'S GENERALLY WE HAVE MORE PEOPLE APPLYING TO BE FIREFIGHTERS AND WE HAVE PEOPLE APPLYING TO BE POLICE OFFICERS.
IS THAT 'CAUSE WE'RE TRYING TO BE MORE COMPETITIVE, SO WE KIND OF MAKE THAT NUMBER CLOSER AND TRYING TO, OR IS THERE ANOTHER REASON BEHIND WHY? SURE.
LET ME, LET ME, LET ME GET OFF THIS SLIDE AND GO BACK TO THIS ONE.
'CAUSE THIS ONE IS MORE ACCURATE.
THE, THE, THIS ONE IS COMPARING, UH, I THINK THE LINE, THE 10.43 IS IF WE WOULD'VE DONE 1% LESS EACH, SO THIS IS WITH THE FOUR POINT A HALF PERCENT THAT'S PROPOSED IN THE WAY IT'S PROPOSED, YOU KNOW, EFFECTIVE APRIL ONE, THIS WOULD BE THE RANKINGS FOR FIRE.
SO YOU WOULD HAVE, UM, YEAH, FIREFIGHTER WOULD BE, UH, 2.6%, UH, BELOW RANK FOUR ON THE MINIMUM AND ONLY 0.04%, UM, ON THE MAXIMUM.
SO CHIEF, YEAH, THEY'RE SIMILAR.
CHIEF, WHAT, WHAT, UH, PVI, IF YOU WANNA RESPOND TO, I MEAN, DOES, DOES THAT FEEL PROBLEMATIC BASED ON THE, THE PAST COUPLE OF, UM, ARE YOUR FIREFIGHTERS, I MEAN, OBVIOUSLY, YOU KNOW, YOU HAVE NO PROBLEM KEEPING 'EM, UH, AND I KNOW YOU'RE DOING A GREAT JOB OVER THERE, BUT DO YOU SEE AN ISSUE THERE OR I REALLY DON'T.
WE YOU'RE TALKING ABOUT POINT YEAH.
UM, THERE'S ALWAYS DIFFERENCES IN POLICE AND, AND FIRE PAY, AND THERE'S A LOT OF DIFFERENCES BETWEEN THE JOBS AND WE, WE UNDERSTAND THAT.
SO I DON'T BELIEVE THAT WOULD BE AN, UH, AN ISSUE.
YEAH, I I WOULDN'T LOSE ANYONE OVER A POINT SOMETHING PERCENT.
AND ON THIS SLIDE, IT DEFINITELY LOOKS A LOT CLOSER, SO APPRECIATE IT.
UH, JUST ED, REAL QUICK, THIS IS WHAT THE TWO AND A HALF PERCENT DOES TO THE PRIOR CHART.
SO YOU SEE A, EVERYWHERE THERE'S A DASH, THEN IT'S A, IT'S A, A DASH IS GOOD BECAUSE WE ARE AT THE FOURTH OR ABOVE THE FOURTH RANK.
AND SO YOU CAN KIND OF SEE THE IMPACT OF THE 2.5% THERE.
PUBLIC SAFETY CONTINUES TO BE A, A MAIN FOCUS HERE.
UM, I WANT TO DRAW YOUR ATTENTION HERE, UH, TO THE 0.5% CHANGE THE NEGATIVE CHANGE.
IF YOU, UH, SCROLL DOWN TO THAT LAST BULLET THERE, UH, YOU'LL SEE A PRETTY, UM, AMAZING NUMBER.
UM, OVERALL, WHAT YOU'RE SEEING HERE AND MAYOR, AND PART OF THE, THE, THE, UH, SOLVING THE RIDDLE OF THE 2.3 IS, IS THIS NUMBER EXACTLY, IS THAT WE'VE HAD A TOTAL OF 26, UH, EITHER RETIREMENTS OR RESIGNATIONS, UM, IN POLICE AND FIRE.
THESE ARE, WERE ALL, UH, UH, SEASONED FOLKS THAT WERE AT THE TOP OF THEIR RANGES OR NEARING THE TOP OF THEIR RANGES.
AND, UH, PARTICULARLY, UM, UH, IN, IN PD RECENTLY, UM, UM, THEY HAVE BEEN, UM, UM, UM, A LOT AND ACTUALLY FIRE AS WELL.
ALL 30, 30 PLUS YEAR EMPLOYEES, JUST LIKE THE ONE WE CELEBRATED, TWO, WE CELEBRATED ON FRIDAY, ACTUALLY, UH, 35 AND 31 YEARS IN PD.
UM, YOU KNOW, UH, UH, TWO, TWO SECONDS ON PD HERE.
UM, YOU KNOW, THIS IS, THIS IS, YOU SEE THE RESIGNATIONS AND YOU MAY SAY, YOU KNOW, WHAT, WHAT IS THAT AN INDICATION OF ANYTHING? AND IT IS ACTUALLY, IT'S AN INDICATION OF THE WORLD OF, UM, POLICING HAS GOTTEN A LOT MORE COMPETITIVE.
IT'S NOT JUST POLICE OFFICERS ANYMORE.
WHEN THE STATE LAW WAS PASSED, THAT REQUIRED A, UH, ARMED, UH, CHIEF, WHAT IS IT CALLED? ARMED GUARD, I GUESS, OR A,
[01:55:01]
UH, S-R-O-S-R-O TYPE POSITION IN EVERY SCHOOL.UM, UM, OUR, UH, FORMER POLICE OFFICER, UM, STEPHANIE LEDGE, LEDGERWOOD HERE, UH, IS GOING, IS DOING EXACTLY THAT.
AND SO WHAT YOU'RE SEEING IS A WHOLE NOTHER COMPONENT OF COMPETITION, UH, BEING ENTERED INTO.
AND, AND, YOU KNOW, WHAT STEPHANIE SHARED WITH ME WAS, IT'S A PRETTY SWEET KIND OF A DEAL.
YOU KNOW, YOU, YOU WORK ESSENTIALLY EIGHT TO FIVE AND YOU, YOU HAVE HOLIDAYS OFF AND IF THE SCHOOL'S NOT IN, AND SO WE'VE GOTTA BE REALLY MINDFUL OF LOSING SOME OF OUR MOST SENIOR OFFICERS, UH, TO, TO A SITUATION LIKE THIS.
AND AGAIN, NOT PROVIDING FOR THAT ORDERLY TRANSITION OF EXPERIENCE AND INSTITUTIONAL KNOWLEDGE TO TAKE PLACE.
AND SO, UM, EVEN MORE OF A REASON, UH, TO, TO BE COMPETITIVE.
BUT THE ONLY WAY, ONLY REASON YOU'RE SEEING THAT REDUCTION IS BECAUSE OF THE, UH, THE, THE DIFFERENCE IN THE SALARIES THERE IN TERMS OF FIRE, SOME CONTINUED KEY INVESTMENTS IN, UM, UH, UH, CHIEF VY IS GOING TO BE, UM, I GUESS IN JULY IS GONNA BE STARTING A, UH, APPRENTICE, UH, UH, 12, HIRING 12 APPRENTICE FIREFIGHTERS.
UH, YOU, YOU SAW THE SEVEN VACANCIES ALREADY.
WE'RE ANTICIPATING BY THE TIME, UH, THAT THESE, UH, THIS CLASS HAS, UH, GRADUATED AND RECEIVES ALL THE OTHER, UH, TRAINING, UM, THE M MSS TRAINING, UH, THAT WILL HAVE AT LEAST FIVE MORE RETIREMENTS.
AND SO CHIEF HAS DONE AMAZING JOB LAST FEW YEARS OF TIMING, THIS'S JUST RIGHT, UM, FOR BOTH POLICE AND FIRE.
YOU SEE THE CONTINUED SUPPORT OF MENTAL AND PHYSICAL WELLNESS PROGRAMS, UH, AND THEN YOU SEE ABOUT, UH, $340,000 TO PURCHASE.
UM, UM, AND, AND, UH, ROUTINE AND, AND REPLACEMENT.
UH, PPE, UH, THERE'S A BATTALION CHIEF VEHICLE IN THE CAPITAL REPLACEMENT FUND.
UH, TWO AMBULANCES IN THE, UH, IN THE, UH, DEBT FUND THAT, UH, UH, AS WELL AS THE BRUSH TRUCK.
AND THEN, UH, 70 BALLISTIC VESTS, UH, AND 140 PROTECTIVE PLATES, UH, THAT'LL BE REPLACED, UH, FOR FIRE, UH, POLICE.
UH, UH, CONTINUED SUPPORT AGAIN FOR BOTH MENTAL AND PHYSICAL WELLNESS PROGRAMS. UM, OVER $400,000, UH, IN, IN UNIFORMS AND SUPPORT.
UH, A BIG, BIG SUPPORT CONTINUED FUNDING, UM, FOR, UH, COMMUNITY ENGAGEMENT INITIATIVES, THINGS LIKE UNIDOS, THE APARTMENT MANAGERS MEETING, UH, FAITH-BASED CONFERENCE, UH, SENIORS OR THE SENIOR CRIME, UM, UH, SENIOR CITIZEN CRIME AWARENESS.
AND SO, UH, REAL CONTINUED EMPHASIS ON CONNECTING WITH THE COMMUNITY.
UH, 13 PATROL VEHICLES, UM, UH, WITH A SPECIAL PROJECT FUND WE'RE GONNA PURCHASE, UH, RED DOT OPTIC SITES.
UH, THAT'S REALLY IMPORTANT, UH, UH, TO, UH, OUR OFFICERS AND, AND THEIR ABILITY TO TRAIN WITH OTHER AGENCIES.
UM, AND THEN, UM, UM, THROUGH A SPECIAL REVENUE FUND, I THINK CHIEF THE, UH, UH, THE, UH, SCHOOL, UM, SCHOOL SAFETY FUND, A, UH, SIDE BY SIDE VEHICLE THAT'LL BE USED AT, UH, FOOTBALL GAMES.
IT'LL BE USED, UH, FOR, UH, TR UH, YOU KNOW, SUPPORTING, UH, SCHOOL, FIVE KS, ALL THOSE KINDS OF THINGS.
UH, THERE, UH, ONE OF THE ISSUES WANTED TO SHARE WITH YOU, UH, AND I REALLY WANT TO TAKE, UH, THANK, UH, CHIEF TITTLE FOR HIS LEADERSHIP ON THIS IS A GREAT OPPORTUNITY TO SUPPORT A COMMUNITY THAT WE HAVE A, A VERY GOOD RELATIONSHIP WITH, UH, TONS OF OPPORTUNITIES TO COLLABORATE, AND QUITE FRANKLY, A LITTLE BIT OF AN OPPORTUNITY, UH, TO ACCOMPLISH A LITTLE BIT MORE REVENUE AND TO HELP, UH, THE JAIL WITH, UH, SOME STAFFING.
AND SO, UH, WHAT WE'RE PROPOSING IS THAT, UH, CURRENTLY ADDISON PD TAKES THEIR ARRESTEES TO THE GRAPEVINE JAIL, WHICH ISN'T REAL EFFECTIVE, UH, FROM A TRAVEL STANDPOINT.
UM, WE'D LIKE TO PROPOSE STARTING AUGUST 1ST.
UH, ADDISON WOULD BRING THEIR ARRESTEES TO OUR DETENTION CENTER, UH, IF YOU HAVEN'T BEEN IN OUR DETENTION CENTER, UM, HOPEFULLY FOR A VISIT.
BUT IF YOU HAVEN'T BEEN IN OUR DETENTION CENTER, UH, RECENTLY, UH, IT HOUSES, UH, 56, UM, IT CAN HOUSE 56, UH, INMATES, UH, ON AVERAGE RPD BOOKS IN ABOUT EIGHT A DAY.
AND CHIEF, I THINK YOU SAID THEY SPEND, UH, MAYBE ABOUT 30 HOURS OR SO.
UH, SO ABOUT A DAY AND A HALF OR SO ON AVERAGE, RIGHT? UH, ADDISON, UH, IS EXPECTED BASED ON THEIR LAST FOUR YEARS OF HISTORY TO BOOK IN ABOUT THREE A DAY.
AND SO IF YOU DO THE MATH, UM, UM, IT'S ABOUT 45 BEDS THAT WE WOULD STILL HAVE AVAILABLE.
UM, THIS CONTRACT IS WRITTEN, UM, IN A WAY THAT WITH 180 DAY NOTICE, WE COULD CANCEL.
SO IF FOR SOME REASON CHIEF SAYS, HEY, THIS JUST ISN'T WORKING LIKE WE THOUGHT, UH, WE NEED TO, WE NEED TO RETHINK THIS.
WE HAVE A VERY, UH, CLEAR OUT ON THIS.
YOU'LL SEE THERE THAT, UM, UH, CHIEF'S DONE A GREAT JOB OF NEGOTIATING THIS ON ABOUT 500,000, UH, FOR THE FIRST FIVE 50 FOR THE SECOND, AND $600,000.
UH, ADDISON WILL PAY US FOR THE USE OF THEIR, UH, FOR THE USE OF OUR DETENTION CENTER.
UH, WE'LL, WE'LL FIGURE OUT THE FOLLOWING YEARS IF WE WANNA RENEW AND A STRUCTURE FOR THAT.
UM, THE, ONE OF THE GOOD OUTCOMES OF THIS IS, UH, RIGHT NOW, UH, CHIEF HAS THREE DETENTION SUPERVISORS, UM, AS THEY'VE TRANSITIONED TO A 12 YEAR, UH, 12 YEARS, SORRY, A, UH, 12 HOUR SHIFT STRUCTURE THAT, UH, DOESN'T PROVIDE FOR 24 7 COVERAGE, THE WAY THAT THE SHIFTS WORK.
SO USING JUST A FRACTION OF THESE DOLLARS, WE WILL BE ABLE TO ACCOMPLISH SOMETHING THAT, UH, CHIEF AND I HAVE BEEN TALKING ABOUT FOR SEVERAL, UM, FOR SEVERAL MONTHS NOW, WHICH IS ADDING THIS FOURTH DETENTION SUPERVISOR.
[02:00:01]
TO ACCOMPLISH THAT IMPORTANT MISSION, UM, WITH REALLY NO COST TO US AND ACTUALLY, UH, A LITTLE BIT OF A NET, UH, REVENUE HERE.AND SO, UM, VERY, VERY EXCITED ABOUT THIS.
UH, CHIEF, DID YOU WANNA ADD ANYTHING IN TERMS OF, UH, UH, THE, THE, UH, PROPOSAL? I'LL JUST TOUCH ON THAT.
UM, FOURTH DETENTION SUPERVISOR, AND A FEW YEARS BACK, WE ADDED A FOURTH LIEUTENANT IN PATROL AS WELL AS WE ADDED A FOURTH COMMUNICATIONS, UM, SUPERVISOR.
AND SO, UH, THAT FALLS RIGHT IN LINE WHEN WE WENT TO 12 HOUR SHIFTS AND ALL THREE OF THOSE WORK GROUPS.
AND SO, UM, I THINK THIS WILL WORK REALLY WELL, AND IT WILL HELP, UH, FUND THAT.
ANOTHER EXCITING OPPORTUNITY, UH, AS MANY OF YOU KNOW, UM, AND, UM, HAVE TOURED PROBABLY, UH, UH, RICHARDSON, UM, UH, PARTNERS WITH, UH, PLAIN PLANO PD D UM, ON A SHARED TRAINING CENTER.
UM, UH, THAT CENTER, UH, WAS BUILT BACK IN 1990, UM, AND, UH, HAS NEVER REALLY BEEN RENOVATED TO ANY, ANY NOTE WORTHINESS.
I MEAN, SOME, SOME MINOR MODIFICATIONS HERE AND THERE.
UH, PLANO COVERS ABOUT 70% OF THE OPERATING COSTS.
WE, WE COVER THE REMAINING 30%.
UH, YOU PROBABLY READ JUST THIS PAST MAY PLANO VOTERS APPROVED, UH, PROPOSITION C, WHICH AUTHORIZED, UH, $51 MILLION IN BONDS TO FUND A NEW TRAINING FACILITY.
SO IF YOU DO THE MATH AND OUR 30% SHARE COMES OUT TO BE ABOUT 15 MILLION, UM, AND ALMOST, ALMOST 15,000,006 IN PRINCIPLE.
UM, THE ANNUAL COST, UH, UH, OF THIS, UM, UM, WILL BE PAID TO THE CITY OF PLANO THROUGH OUR DEBT SERVICE FUND.
UH, THAT'S ABOUT APPROXIMATELY 1.3 MILLION, UH, PER YEAR FOR ABOUT 20 YEARS.
THE FIRST PAYMENT WILL ACTUALLY BE AN FY 27.
SO, UH, KENT AND TODD ARE ALREADY MODELING THIS, UM, HAVE AMPLE CAPACITY AND, AND REALLY WON'T CHANGE ANYTHING OF ANY NOTE WORTHINESS, BELIEVE IT OR NOT.
1.3 IS, IS NOT THAT SIGNIFICANT OF AN IMPACT TO, TO OUR, OUR, IN, IN OUR MODELING.
UM, THE, UH, NEW FACILITY IS GONNA BE CONSTRUCTED WHERE THE DRIVING PAD IS, AND I THINK THEY'RE GONNA FLIP 'EM.
SO YOU'LL BE, HAVE CONTINUOUS USE OF THE TRAINING CENTER, UM, THROUGHOUT THE DURATION OF THE PROJECT, WHICH WILL LAST ABOUT FOUR YEARS.
UM, AND THEN IN ADDITIONALLY, UM, WE WILL CONTINUE TO HAVE ABOUT A HUNDRED THOUSAND DOLLARS OR SO ANNUAL OPERATING COSTS, UM, UH, COMPONENT TO THIS.
UM, THERE MAY BE SOME EFFICIENCIES FROM THE NEW BUILDING, PROBABLY, UH, THERE MAY BE SOME ADDITIONAL, UH, COSTS, LIKE WE SEE THINGS LIKE CUSTODIAL SERVICES OR THINGS OF THAT NATURE, BUT WE, WE BELIEVE IT'LL STAY ABOUT A HUNDRED THOUSAND DOLLARS.
AND SO, UH, NO IMMEDIATE IMPACT, UM, WITH RESPECT TO, UM, WITH RESPECT TO FY 26 BUDGET, BUT WE WANTED TO LAY THE GROUNDWORK AND, AND PLANT THE SEED FOR WHAT'S COMING NEXT YEAR.
YOU'LL, SO THE FIRST TIME YOU'LL SEE THIS IN OUR DEBT PLAN WILL BE NEXT YEAR, AND THAT'LL BE IN SERIES, UH, 27 WILL BE THE FIRST TIME THAT WE DO, WE DO THE SALE.
UM, SO LOOKING AT PUBLIC SAFETY INVESTMENT, THIS IS ALL ALWAYS A FUN CHART, UM, TO, TO LOOK AT.
AND I, IT, IT'S SO THANKFUL FOR YOUR COMMITMENT TO THIS.
UM, NOW THE PROPOSED COMPENSATION THAT WE'VE TALKED ABOUT IS NOT CURRENTLY REFLECTED IN THAT NUMBER OF 72 0 7 1.
SO IF YOU APPROVE THE COMPENSATION AND WE MOVE FORWARD WITH THAT AS IS FOR PUBLIC SAFETY, THAT AMOUNTS TO, UH, $73.8 MILLION, WHICH WOULD BE ANOTHER 2% INCREASE YEAR OVER YEAR, UH, FOR PUBLIC SAFETY.
THAT IS, UM, ABOUT A 30% INCREASE, UM, IN THE LAST FIVE YEARS, UH, FOR PUBLIC SAFETY.
A GOOD BIT OF THAT IS, UM, UM, THE, SO, UH, MAYOR PRO TEMP, BRINGING ON FIRE, UH, AMBULANCE NUMBER SIX, UH, ADDING, UH, THE, THE, UH, BLOCKER, UH, DRIVERS, FOR INSTANCE, UH, UH, SEVERAL, UH, POLICE OFFICERS OVER TIME, OTHER POSITIONS IN, IN PD AS WELL, UM, BUT ALSO JUST THE INCREASED COST OF PROVIDING THESE IMPORTANT SERVICES.
FINAL KEY AREA OF FOCUS HERE, AND THAT I'M GONNA TURN IT OVER TO BOB, IS, UH, JUST OUR PRO PROJECTS AND INFRASTRUCTURE, UM, CONTINUED KEY INVESTMENTS.
UH, WE'RE GONNA CONTINUE OUR SCREENING WALL MAINTENANCE PROGRAM THAT'S BEEN VERY POPULAR.
UM, IT'S TAKEN ADVAN, IT'S TAKEN, UM, IT'S TAKEN CARE OF AND, AND MAINTAINING OUR KEY INVESTMENTS AND THINGS LIKE SCREENING WALLS, ENTRY FEATURES, UH, BRIDGE RAIL MAINTENANCE, UH, ALL THOSE THINGS THAT WE'VE DONE THROUGH OUR NEIGHBORHOOD VITALITY, UH, PROGRAMS THAT WERE FUNDED WITH PRIOR BUYING PROGRAMS. UH, $440,000 OF CONCRETE AND ASPHALT REPAIR.
NOW, THAT IS IN ADDITION TO THE TRANSFER OUTS THAT WE'LL TALK ABOUT IN A SECOND.
SO THAT'S, THAT'S THOSE LOCALIZED REPAIRS, THE EMERGENCY REPAIRS, THINGS OF THAT NATURE.
AND THEN ONE POINT MILLION DOLLARS IN, UH, TRAFFIC SIGNALS, UH, MARKINGS AND SIGNS, UH, THAT'S UP.
AND THIS IS THE ONE AREA THAT DID RECEIVE, UH, SOME INFLATIONARY DOLLARS ADJUSTMENTS ABOUT $92,000 FOR A TOTAL OF $1.9 MILLION.
VERY PLEASED TO TELL YOU THAT THIS BUDGET THAT I'M PRESENTING DOES NOT TOUCH ANY OF THE TRANSFER OUTS.
UH, SO EVEN WHILE WE'RE EXPERIENCING A DOWNTURN OF ABOUT ONE, UH, YOU KNOW, 0.34% OR FOUR 3%, UM, IN, IN, UH, PROPERTY TAX, YOU KNOW, THIS NUMBER IS TIED TO THESE TRANSFER ROUTES ARE TIED TO THAT.
WE'RE PROPOSING TO HOLD THAT NUMBER STEADY AND NOT REDUCE IT, UH, TO THE PROPORTIONATE, UH, EQUIVALENT.
SO THE STREETS ALLEYS PARKED MAINTENANCE AND FACILITY MAINTENANCE WILL ALL BE BUILT TO THEIR, UH, FY 25 NUMBERS THAT ALLOWS US TO ACCOMPLISH EVERYTHING THAT WE SHARED WITH YOU
[02:05:01]
IN OUR PRELIMINARY WORK PLANS, UH, IN EACH OF THESE BRIEFINGS.SO ALL THE PROJECTS THAT YOU, UH, WERE, WERE BRIEFED ON WILL, WILL GET ACCOMPLISHED AS A RESULT OF HOLDING THAT.
UM, FROM A, UM, OBVIOUSLY, UH, YOU'LL BE SEEING THIS TOMORROW NIGHT MORE IN DETAIL ON THE DEBT, UH, SIDE, BUT WE'VE GOT THE 21 BOND PROGRAM, UH, THE FIFTH YEAR, INCLUDING, UH, UM, CONTINUING TO PROGRESS CITY HALL AND LIBRARY.
UM, WE'VE GOT ABOUT $8.7 MILLION TO REBUILD, UH, POLK STREET, UH, AND HOPEFULLY A LITTLE BIT OF, UH, TEXAS, UH, STREET, UH, AS WELL AS, UM, THE, UH, PUBLIC REALM ON, UM, UH, POLK HEIGHTS AQUATIC CENTER.
WE BRIEFED YOU, UH, THIS IS YOUR, THIS IS THE FIRST INITIATIVE ACTUALLY EXCITED ABOUT THAT, THE FIRST INITIATIVE COMING OUT OF THE AQUATICS MASTER PLAN.
UH, SO THIS'LL BE A $1.8 MILLION REHAB AND RENOVATION OF HEIGHTS AQUATIC CENTER, UH, THAT'LL POSITION IT REALLY WELL FOR THE COMING DECADE.
AND THEN, UH, WE BRIEFED YOU, UH, ERIC BRIEFED YOU, UM, I'M SORRY, UH, NICK AND, UH, AND BRAD BRIEFED YOU ON THE WATER AND WASTEWATER MAINTENANCE, UH, CAPITAL PROJECTS THAT AMOUNT TO $20 MILLION.
UH, YOU SEE A VARIETY OF CAPITAL REPLACEMENT.
UM, THESE ARE OUT OF OUR CAPITAL REPLACEMENT FUND.
UM, YOU SEE, UH, THERE ON THE RIGHT HAND SIDE.
AND THEN 1.19, UH, UH, MILLION DOLLARS IN DEDICATED PROJECTS FOR THE UPCOMING YEAR OUT OF THE DRAINAGE FUND, UH, BRINGING AN INCREASE IN THE LAST FIVE YEARS FOR INFRASTRUCTURE AND PROPERTY TAX.
I'M SORRY FOR INFRASTRUCTURE, UH, IMPROVEMENTS UP TO, UH, ABOUT 47%.
UM, LET ME, UM, TAKE A, A MUCH NEEDED, AND PROBABLY FOR YOU A MUCH, UH, UH, APPRECIATED BREAK FROM TALKING.
AND I'M GONNA TURN IT OVER TO BOB WHO'S GONNA COVER, UH, HE'S GONNA RUN THROUGH OUR GENERAL FUND FEE RECOMMENDATIONS, AS WELL AS DO A LITTLE BIT OF A DEEP DIVE ON SOME OF THE OTHER DEPARTMENTS.
AND THEN I'M GONNA COME BACK AND TALK ABOUT THE TAX RATE AND WHAT WE RECOMMEND, UH, FOR YOUR CONSIDERATION.
AND THEN WE WILL, UH, KIND OF WRAP UP WITH A LOOK AT TOMORROW NIGHT AND TAKE ANY QUESTIONS.
UM, I WANT TO TAKE A SECOND HERE TO, UH, THANK OUR DEPARTMENTS FOR THEIR HELP.
I MEAN, BUDGET HERE IS, IT IS TRULY A, A TEAM SPORT, SO I APPRECIATE ALL THE EFFORT THAT THEY PUT IN.
SO I, UM, I THINK WE'VE DEVELOPED A PRETTY, UH, GOOD PLAN GOING FORWARD.
UH, ONE OF THE THINGS THAT WE CHA, UH, CHARGE THEM WITH EVERY YEAR IS TO REVIEW THEIR, THE FEES THAT THEY CHARGE.
UH, THEY LOOK AT, UH, THE BENCHMARKS WITH OUR OTHER, UM, 13, WELL, OTHER 12 CITIES.
UM, BUT THEY ALSO LOOK AT THE COST ASSOCIATED WITH THOSE PROGRAMS AND TRY TO SEE IF THOSE, UM, FEES, UH, REPRESENT THAT COST.
UH, WE HAVE A COUPLE AREAS WHERE WE ARE RECOMMENDING SOME FEE INCREASES, UH, IN ANIMAL SERVICES.
UH, WE ALL KNOW THAT THE, UH, COST OF, UH, PROVIDING THAT SERVICE, WHETHER IT'S STAFFING, UH, THE COST OF, OF MEDS OR FOOD IS, HAS INCREASED OVER THE LAST COUPLE YEARS.
WE ARE, UH, RECOMMENDING SOME VARIOUS INCREASES THERE, UH, RELATED TO IMPOUND FEES, UH, DAILY QUARANTINE FEES IN THE EUTH FEES, THE TOTAL, UH, INCREASE THERE WOULD BE ABOUT $23,000.
UH, ALL THE NUMBERS THAT I AM, ALL OF THESE FEES ARE CURRENTLY IN THE REVENUE NUMBERS THAT WE ARE, UM, THAT YOU, YOU DO SEE IN THE FUND SUMMARIES.
UM, BUILDING INSPECTION, UH, THEY PROVIDE, UH, INSPECTIONS BOTH WITH IN-HOUSE PERSONNEL AS WELL AS, UH, WITH THE CONTRACT.
BOTH OF THOSE HAVE SEEN COST INCREASES.
AGAIN, UH, EVALUATING THE MARKET, THERE WAS SOME ROOM.
WE ARE RECOMMENDING AN INCREASE TO THE, UH, SINGLE FAMILY PERMIT FROM 1950 TO 2250, UM, FOR NEXT YEAR, AS WELL AS THE MULTI-FAMILY PERMIT GOING FROM SEVEN 50 TO $900.
UH, COMMUNICATIONS IS, UH, PROPOSING A COUPLE NEW FEES.
UM, THIS ALLOWS THE CITY TO BETTER COORDINATE WITH, UM, THE APPLICANTS, UH, TO, UH, ENSURE SAFETY AND, AND PROPER, UH, USE OF FACILITIES AND, AND CITY AREAS.
UH, THE FIRST ONE WOULD BE A FIELD PERMIT FEE OF $250, AND THEN A, A CITY FACILITY USAGE FEE FOR FILMING OF $500.
AND THE HEALTH DEPARTMENT, UH, AGAIN, UH, LOOKING AT, UH, SOME COST OF SOME OF THE PROGRAMS THAT THEY OFFER, UH, WE ARE RECOMMENDING AN INCREASE TO THE F FOOD SERVICES PLANNED REVIEW FEE GOING FROM TWO 50 TO 300, AS WELL AS THE O UH, CHANGE OWNER FEE AND THE FOOD SERVICES REINSPECTION FEES BOTH BEING INCREASED, UH, AS WELL.
A LATE, UH, RENEWAL FEE WILL GO FROM $50 TO A HUNDRED DOLLARS.
UH, A LOT OF OUR TIME IS, UH, SPENT, UH, DOING THESE FEES, AND IT'S ONLY REASONABLE TO, TO RECOVER SOME OF THOSE.
NOW, THERE ARE TWO FEES IN THE HEALTH AREA THAT ARE BEING IMPACTED BY LOCAL OR RECENT LEGISLATION.
BASED ON RECENT LEGISLATION, WE ARE NO LONGER ALLOWED TO CHARGE, UH, COTTAGE FOOD VENDORS WITH SAMPLING AT, UH, THE TEMPORARY OPEN MARKETS.
WE'RE NO LONGER ALLOWED TO CHARGE THAT.
UH, SO WE WILL BE REMOVING THAT FEE.
UH, THAT WILL BE A COST OF ABOUT A HUNDRED OR ABOUT A THOUSAND DOLLARS, UH, TO, TO THE BUDGET.
ANOTHER ONE IS, IT'S A NEW FEE, BUT IT'S REALLY A CHANGE.
[02:10:01]
FOR THE SUPERMARKETS.EACH INDIVIDUAL DEPARTMENT IS PERMITTED SEPARATELY.
IT ALLOWS A GROCERY STORE TO STAY OPEN IF ONE DEPARTMENT FAILS.
UH, THE STATE HAS RECENTLY CHANGED THAT TO WHERE WE CAN ONLY CHARGE THEM ONE FEE.
UH, IT IS A COMBINED FEE, AND IT IS SET AT A MAXIMUM OF SEVEN 50 OR WHATEVER THE STATE, UH, HAS, UH, CHARGES ON THEIR SIDE.
UM, PARKS A, UH, ATHLETICS, UH, ASSOCIATED WITH THE COST OF MAINTAINING THOSE FIELDS AND OPERATING THE LIGHTS.
WE ARE RECOMMENDING INCREASING THE, UH, BALL FIELD USAGE, EXCLUDING HUFFINES AND KEFLER FIELD, GOING FROM $10 WITH NO LIGHTS TO $25 AN HOUR AND $25, UH, PER HOUR WITH LIGHTS TO $40.
WE ALSO PLAN TO ADD A, UH, $10, UH, CHALKING REQUEST FEE AS WELL.
UH, THE ATHLETIC USE FEES, UH, THESE WERE ESTABLISHED IN 2013 AND HAVE NOT BEEN ADJUSTED SINCE.
UH, WE ARE RECOMMENDING GOING FROM $4 A PARTICIPANT TO $6 FOR, UH, SOCCER AND FOOTBALL, AND $5 TO $7 FOR SOFTBALL AND BASEBALL.
ALL OF THESE FEES HAVE BEEN, UH, WERE ESTABLISHED IN 2018, OR LAST ADJUSTED IN 2018, UH, REALIGNING WITH THE COST ASSOCIATED WITH THAT PROGRAM.
UH, WE ARE RECOMMENDING A COUPLE INCREASES THE CLASS FEE, UH, DEPENDING ON THE, UM, UH, CLASS, UH, AND LEVEL THAT YOU WERE IN, BUT IT, IT AVERAGES OUT TO ABOUT 10, UH, PERCENT INCREASE TO ALL THOSE FEES.
UH, THE GYMNASTIC, UH, FRIDAY NIGHT FUN FEE WOULD GO FROM $10 FOR RESIDENTS TO $15 AND $15 FOR NON-RESIDENTS TO 20.
AND THEN BIRTHDAY PARTIES WOULD, UH, SEE AN INCREASE AS WELL, APPROXIMATELY 10%.
THE POOL FEES, UM, THE, THE, THE FIRST ONE, THE NEIGHBORHOOD POOL, UH, PARTY RESERVATION FEE, UH, WAS ESTABLISHED OR LAST ADJUSTED IN 2021.
AND SINCE THEN, PARKS HAS ADDED ADDITIONAL STAFF TO THOSE PARTIES, UH, TO ENSURE SAFETY.
AND WE'RE ALIGNING THAT WITH THE COST OF THAT PROGRAM, AND WE'RE RECOMMENDING INCREASING THAT FROM $125 TO $150.
UH, THE NEXT TWO FEES, UH, RELATED TO SWIM LESSONS WERE ESTABLISHED OR LAST ADJUSTED IN 2010, AND OBVIOUSLY THE COST OF THOSE PROGRAMS HAVE INCREASED, AND WE'RE RECOMMENDING, UH, GOING FROM $99 TO $125.
UM, AGAIN, DEPENDING ON THE, THE, IF THAT'S SINGLE, AND THEN 1 49 TO 1 75 FOR DOUBLE LESSONS.
UH, TENNIS, UH, THIS IS THE SECOND YEAR OF A TWO YEAR LOOK AT TENNIS FEES.
A LOT OF THESE ARE DRIVEN BY THE FACT THAT, UM, OUR INSTRUCTORS GET A PARTIAL, UH, GET COMMISSION OFF OF THESE, UH, LESSONS THAT THEY, THAT THEY PROVIDE.
AND THIS ALLOWS THE, THE CITY TO STAY COMPETITIVE WITH THE WAGES FOR THOSE, UH, INSTRUCTORS.
UH, WITHOUT THAT, WE FEEL WE WOULD FALL BEHIND IN WHAT THE MARKET AND THE AREA IS PAYING.
UH, TRAFFIC AND MOBILITY IS PROPOSING A NEW FEE, UH, FOR, UH, SPEED STUDIES THAT ARE REQUESTED OUTSIDE OF PLAN STUDIES OR FOR REPEATING OF STUDIES THAT WERE ALREADY COM UH, COMPLETED.
THIS ALLOWS THE CITY TO, UH, CONTINUE WITH THEIR WORK PLAN AND, AND TO FINALIZE THEIR WORK PLAN, BUT AS BE RECEPTIVE, UH, RESPONSIVE TO CITIZEN REQUEST, UH, AND CONCERNS, UH, COMMUNITY SERVICES.
UH, BASED ON THE, UH, THE INSPECTION PROGRAM COST, WE ARE RECOMMENDING RENTAL REGISTRATIONS GOING FROM $75 TO $85, UH, SHORT-TERM RENTALS GOING FROM 75 TO A HUNDRED DOLLARS, AND THEN MULTI-FAMILY INSPECTION FEES OF 13, GOING TO 15.
BOB, IF YOU DON'T MIND HOLDING FOR JUST A MOMENT, COUNSEL, I'VE GOT A COUPLE QUESTIONS.
UH, THE FIRST QUESTION ABOUT FIELD RENTALS, THERE WAS HUFFINES AND KEER FIELDS THAT WERE EXEMPT.
ARE THEY ON A DIFFERENT FEE STRUCTURE? YES.
WHAT'S THE REASONING FOR SOME OF THAT EXEMPTION? UH, THEY HAVE SOME, UM, FEATURES THAT THE OTHER BALL FIELDS DON'T.
THEY HAVE THEIR OWN FEE STRUCTURE.
AND THEY HAVE TO BE, UM, UNLOCKED SO THAT THE, UM, GROUPS CAN ENTER IN.
SO THEY HAVE TO HAVE STAFFING ON SITE AS WELL.
UM, NOW THE QUESTION AROUND, UH, THE TRAFFIC STUDIES.
CAN YOU GO BACK TO THAT SPEED STUDY? UH, YES.
SO IF I CAN STOP, DON, CAN YOU, OR MAYBE ONE OF THE ASSISTANTS CAN EXPLAIN TO ME WHAT THIS PROCESS LOOKS LIKE? I KNOW OVER THE LAST TWO AND A HALF YEARS, ALMOST NOW, UM, I'VE HAD A COUPLE OF PEOPLE REQUEST THESE IN VARIOUS PARTS OF THE CITY.
OBVIOUSLY, I'M SURE I'M NOT THE ONLY COUNCIL MEMBER THAT GETS, GETS THOSE EMAILS.
SO CAN YOU SPEAK TO THAT? UM, BECAUSE GOING FROM ZERO TO 2000, THAT SEEMS LIKE A HUGE JUMP.
[02:15:01]
WANNA MAKE SURE THAT IF, AS WE DISCUSS THIS, THAT THAT PROCESS IS CLEAR TO RESIDENTS SO THAT WHEN THEY HAVE CONCERNS, IT'S NOT JUST THEY'RE NOT SURPRISED, BUT WE NO LONGER DO THOSE.SO WE WOULD CONTINUE TO DO THOSE.
WE BUDGET FOR ABOUT 20 A YEAR.
UM, WE OUTSOURCE THOSE, AND THE COST OF THAT IS $2,000.
UH, WE HAVE THE ABILITY TO, BUT SOMETIMES WE GET BACKED UP.
WE HAVE EQUIPMENT TO ISSUES THERE.
WE HAVE THE OPTION TO GO, UH, TO A THIRD PARTY TO DO THAT.
UM, WHAT THIS WOULD DO IS OUTSIDE OF OUR NORMAL ROTATION, UM, IF, IF A, IF A NEIGHBORHOOD OR, OR RESIDENTS WANTED TO REQUEST A STUDY, TYPICALLY WITHIN TWO YEARS, WE, WE SAY A STUDY'S VALID FOR TWO YEARS, UNLESS IN SOME MAJOR LAND USE CHANGE OR SOMETHING LIKE THAT, THAT WOULD GENERATE ADDITIONAL TRAFFIC, UH, WITHIN KIND OF THAT WINDOW.
UH, WHERE WE WOULDN'T, WE WOULDN'T PUT IT BACK ON THE LIST IF, IF A A NEIGHBORHOOD FELT STRONGLY, OR AGAIN, RESIDENT FELT STRONGLY THAT SOMETHING NEEDED TO BE DONE, THIS WOULD GIVE THEM AN OPTION, UH, TO PAY A FEE.
AND THEN WE WOULD USE OUR THIRD PARTY TO, UH, RETEST, UH, AN AREA, UH, OUTSIDE OF, OF WHEN WE WOULD OTHERWISE RETEST IT.
BUT, BUT THE, THE NORMAL EMAILS YOU GET REQUESTING, UH, STUDIES, ASSUMING WE HAVEN'T DONE ONE WITHIN THAT WINDOW, IT WOULD STILL GET ADDED TO THE LIST AND, AND PAID FOR BY THE CITY AS USUAL.
NEXT QUESTION AROUND THE POOLS.
UM, THE, ARE ARE NOT A POOLS, I'M SORRY, THE, UH, WHAT IS IT THE, WELL, I GUESS IT KIND OF PULLS GYMNASTICS.
WHEN WE LOOK AT THESE FEES AND THE INCREASES, ARE WE LOOKING AT, I GUESS, NEIGHBORING CITIES? AND I ASKED THIS, WE HAD A SHORT CONVERSATION BEFORE THE MEETING TODAY.
'CAUSE WE, I HAD A RESIDENT WHO CALLED ME A COUPLE WEEKS AGO UPSET, UM, ABOUT, UM, PEOPLE OUTSIDE THE CITY USING OUR REC CENTERS.
AND LIKE, WELL, YOU KNOW, EVERY CITY ALLOWS THAT.
AND, AND SHE STRONGLY FELT THAT, WELL, INSTEAD OF CHARGING $5 MORE, WE SHOULD CHARGE 'EM TWICE THE AMOUNT.
OR SOME KIND OF LIKE, HOW IS THAT DETERMINED? CAN SOMEBODY MAYBE SPEAK TO THAT, LIKE HOW WE DECIDE TO GO UP FIVE BUCKS OR 10 BUCKS WHEN IT COMES TO THESE SERVICES? ESPECIALLY WHEN IT COMES TO OUTSIDE RESIDENTS WHO AREN'T NECESSARILY AS BIG OF A TAXPAYER IS? YEAH.
I MEAN, PART OF THE REVIEW IS COMPARING TO THE, THE NEIGHBORING CITIES.
UH, WE CALL IT THE BIG 12 PLUS OR BIG 10 PLUS THREE BACK IN THE DAY.
UH, BUT IT'S A TOTAL OF 13 CITIES, INCLUDING RICHARDSON.
WE NEVER WANT TO BE THE TRENDSETTER.
WE NEVER WANT BE AT THE TOP, BUT WE WANT TO BE WITHIN THAT MARKET AVERAGE AREA.
SO THAT IS ONE COMPONENT, BUT THE COST OF THE PROGRAM ITSELF IS ANOTHER COMPONENT.
UM, IF, YOU KNOW, THE, WE'RE NOT GONNA INCREASE, WE DON'T RECOMMEND, WE DON'T BRING RECOMMENDATIONS FOR FEE INCREASES IF WE'RE, YOU KNOW, MAKING ENDS MEET, IF YOU WILL, FOR THAT PROGRAM.
A LOT OF THE PROGRAMS THAT PARKS OFFER HAVE A SEPARATE STRUCTURE FOR NON-RESIDENTS.
UM, I, I THINK, UH, REC CENTERS HAVE, UH, NON-RESIDENT AND, UH, CORPORATE REC CENTER OR CORPORATE, UM, MEMBERSHIPS, UM, POOLS, I KNOW, UH, POOLS, CHARGES, UH, NON-RESIDENTS MORE.
NOW WHAT THAT DELTA IS, AGAIN, THEY, THEY LOOK AT, UM, UH, MARKET STUDIES AS WELL AS, YOU KNOW, REALLY HOW BIG OF A POPULATION IS THAT, THAT'S, THAT'S INVOLVED IN THERE.
UM, YOU KNOW, IF IT WAS SEEN A PROBLEM, WE, I THINK IN GYMNASTICS WE DID WIDEN THAT RANGE RECENT OR LAST COUPLE YEARS IN ORDER TO MAKE SURE THAT, UM, YOU KNOW, IT KIND OF WENT TO OUR RESIDENTS FIRST.
UH, SO THERE IS SOME THOUGHT GONE INTO, YOU KNOW, WHAT IS THAT, THAT RANGE THERE.
BUT WE ALSO WANT TO BE, YOU KNOW, GOOD NEIGHBORING CITIES AS WELL.
UM, WE DON'T WANNA START CHARGING THEM A BIG AMOUNT.
AND THEN THE NEXT CITY UP CHARGES OUR PERSON, OUR CITIZENS A LOT TO GO THERE AS WELL.
SO THERE IS A BALANCING ACT THERE.
UH, WE NEVER AGAIN, WANT TO MAKE IT PUNITIVE FOR ANYBODY THAT TO COME TO ANY OF OUR FACILITIES.
UM, BUT WE DO UNDERSTAND THAT, THAT A NON-RESIDENT, A RESIDENT HAVE DIFFERENT INVESTMENT IN THAT FACILITY.
ANY OTHER, WE'LL MOVE ON TO EXPENDITURES IF THERE AREN'T ANY OTHER QUESTIONS.
UH, THE GENERAL FUND EXPENDITURES 181.6 MILLION.
UH, THE LARGEST, UH, COMPONENT OF THAT IS PERSONAL SERVICES, ROUGHLY ABOUT 62.7, UH, PERCENT.
UH, THIS NEXT, UM, SLIDE HERE SHOWS THE, THE, UH, INCREASE OR DECREASE IN THOSE AREAS.
UM, PERSONNEL IS ALWAYS, AGAIN, IT'S THE LARGEST, BUT, UH, THE PAY PLAN IS, IS A LARGE FACTOR.
BUT WE HAVE SOME OTHER FACTORS AS WELL.
SOME INFLATIONARY THINGS THAT WE HAVE NO CONTROL, WHETHER THAT'S INSURANCE, UH, ELECTRIC, UH, BUT WE HAVE OTHER THINGS LIKE BRINGING THE LIBRARY BACK ON THAT WE HAD TO, UH, YOU KNOW, LOOK AT A WAY TO GET THAT BACK IN.
UM, AND THE PERSONNEL SERVICES GOING UP ABOUT 1.1 MILLION.
IT DOES INCLUDE A RESERVE FOR THE PAY PLAN THAT, THAT, UH, DON WENT OVER.
OTHER THAN THE STEPS, IT IS RESERVED
[02:20:01]
IN NON-DEPARTMENTAL.UH, YOU WILL NOT SEE THE PAY PLAN IN ANY OF THE PROGRAM BUDGETS, UH, GOING FORWARD.
UM, IT DOES PROVIDE FOR ADDITIONAL PART-TIME STAFFING, UH, FOR WHEN THE LIBRARY REOPENS NEXT SUMMER, UH, SUPPORTS A FIRE ACADEMY, UH, BEGINNING IN JULY.
AND THEN, UH, FOR FY 25 OVERALL BETWEEN A, A COMBINATION OF FROZEN POSITIONS AND ATTRITION, UH, WE ANTICIPATED SAVINGS FROM ABOUT 5%.
UH, WE ARE GOING TO INCREASE THAT, UH, ASSUMED SAVINGS TO 7%.
UH, WE FEEL THAT THAT IS, UH, REASONABLE.
CURRENTLY, WE'RE RIGHT AROUND 10% VACANCIES, AND THIS IS NON-PUBLIC SAFETY.
I WANNA MAKE SURE THAT THIS IS NON-PUBLIC SAFETY VACANCIES THAT WE ARE ASSUMING, UH, RIGHT NOW WE'RE RIGHT AROUND 10%.
SO 7% DOES SEEM, UH, APPROPRIATE AT THIS TIME.
IT IS SOMETHING THAT THE MANAGEMENT TEAM MEETS WITH ON, UM, EVERY OTHER WEEK TO ENSURE THAT, UH, WE ARE MEETING THAT TARGET PROFESSIONAL SERVICES ARE GOING UP ABOUT 22, UH, 233,000, 234,000.
IT DOES IN, UH, INCLUDE SOME INCREASES IN INSURANCE PREMIUMS, BUT A LARGE PORTION OF THAT INCREASE IS BRINGING THE, UH, CUSTODIAL CONTRACT BACK ONLINE FOR THE LIBRARY WHEN IT REOPENS.
IT ALSO DOES SUPPORT THE HOME IMPROVEMENT INCENTIVE PROGRAM.
UH, WE WILL GET INTO THAT IN THE COMMUNITY SERVICES PART.
THE LARGEST PORTION OF THAT IS, UH, SOME INCREASES WE'RE SEEING ON THE IT SIDE, SPECIFICALLY FOR SOME OF THE, UH, PUBLIC SAFETY EQUIPMENT.
AND THEN THERE'S SOME PARTIAL, UH, INFLATIONARY, UH, INCREASES, UH, IN WILDFLOWER MAINTENANCE.
577,000, UH, A COUPLE WEEKS BACK.
YOU WERE BRIEFED BY, UH, WADE ON, UH, WAYNE ON SOME OF HIS, UH, CONCERNS.
UH, A LOT OF THAT INCREASE IS BEING OFFSET BY, UM, PERSONNEL SAVINGS.
WE ARE GOING TO UN FUND SOME OF HIS POSITIONS, UH, BECAUSE HE'S USING OUTSIDE SERVICES TO COVER SOME OF THIS NEED.
AND IF THAT, IF HE'S ABLE TO FILL THOSE POSITIONS, THEN WE'LL MOVE THAT BACK TO THE PERSONNEL SERVICES CATEGORY.
UH, SUPPLIES AND MISCELLANEOUS DECREASES, UH, 688.
THERE'S A LOT OF MOVING PARTS IN THERE.
IT DOES FULLY FUND, UH, PUBLIC SAFETY EQUIPMENT, UH, SUPPORT FOR PROFESSIONAL DEVELOPMENT, UH, AS WELL AS SOME OF THE ELECTRICAL COSTS.
UH, IF YOU REMEMBER ENCORE BEING HERE A COUPLE WEEKS AGO, UH, THERE'S SOME, SOME MAJOR INCREASES COMING FOR, FOR STREET LIGHTING.
UH, THERE ARE SOME PASS THROUGHS AND YOU'LL SEE IN THE REVENUE SIDE, AND IT'S ALSO RE REFLECTED IN THE EXPENDITURE SIDE.
SO FOR AQUATICS AND, UH, OLDER ADULTS, WE PUT ON, WE HAD PROGRAMS THAT BASICALLY THEY PAID US, OR THE, THE CITIZENS PAID US, AND THEN WE PAID A VENDOR.
THEY ARE NOW GONNA PAY A VENDOR DIRECTLY, SO THAT RESULTS IN THE REVENUE GOING DOWN AS WELL AS THE CITY AS EXPENDITURE.
UM, ON THE, UH, TRANSFERS OUT, AS DON SAID, THEY WERE ALL KEPT AT THE SAME LEVEL, WITH THE EXCEPTION OF THE, UH, CAPITAL EQUIPMENT REPLACEMENT FUND, UH, TRANSFER OUT THAT IS BEING RIGHT SIZED TO THE REPLACEMENT SCHEDULE NEXT YEAR.
IT'S NOT A CUT, IT'S JUST RIGHT SIZING TO WHAT THE TRUE NEED IS NEXT YEAR.
ALL OF THIS IS BEING DONE WITH MAINTAINING 90.99 DAYS, EXCEEDING THE MINIMUM OF 90 DAYS.
SO WHERE DOES THE MAJORITY OF THE, THE GENERAL FUND MONEY GO? UH, 75% OF IT GOES TO REALLY FOUR CATEGORIES.
UH, PUBLIC SAFETY MAKES UP ABOUT 39% OF THAT.
UH, THE GENERAL GOVERNMENT, UH, IS 14.3%, OR 25.9 MILLION.
AGAIN, THIS DOES INCLUDE THE RESERVE FOR THE PUBLIC SAFETY OR THE, THE PAY PLAN.
UH, PROPOSAL INFRASTRUCTURE AND MOBILITY, 11% OR 21.5 MILLION.
AND THEN RECREATION LEISURE MAKES UP THE OTHER, UH, LARGEST PART OF 9.7 OR 9.7%, 17.6 MILLION.
SO, UH, SOME OF OUR PROGRAM CATEGORIES, UH, COMMUNITY SERVICES AND NEIGHBORHOOD SERVICES.
THIS IS, UH, COMMUNITY SERVICES, BUILDING INSPECTION, HEALTH AND, AND ANIMAL CONTROL.
IT DOES FULLY FUND THE HOME INCENTIVE IMPROVEMENT PROGRAM AT 1.7 MILLION.
THIS IS ROUGHLY $200,000 DECREASE, UH, FROM FY 25.
AND IT IS BASED ON THE VALUE OF THE PROPERTIES PARTICIPATING IN THE PROGRAM.
IT DOES INCLUDE ONGOING SUPPORT FOR HOMEOWNER AND NEIGHBORHOOD ASSOCIATION SUPPORT PROGRAMS, STUFF LIKE COMM, UH, COUNCIL PRESIDENT MEETINGS, LEADERSHIP WORKSHOPS, SIGN TOPPER PROGRAMS, UH, CODE ENFORCEMENT EFFORTS, UH, GRAFFITI ABATEMENT PROGRAMS. THE, THE HOME SUITE HOME PROGRAM, AS WELL AS APARTMENT MANAGER MEETINGS.
ALL OF THAT IS FULLY SUPPORTED IN THIS BUDGET.
UH, DOES PROVIDE, UH, ADDITIONAL 50,000 FOR SCREENING WALLS, UM, WASHING AND THE, UH, GRAFFITI PROGRAM OF 30,000.
UH, WE ARE SEEING A DECREASE IN BUILDING INSPECTION.
UH, WE ARE REALIGNING, UH, THEY DO IN-HOUSE AS WELL AS, UH, CON CONTRACT INSPECTIONS.
WE'RE REALIGNING THAT CONTRACT WITH THE STAFFING
[02:25:01]
IN THE DEPARTMENT.UH, SO THEY, THEY ARE FULLY FUNDED FOR THEIR NEED.
IT'S JUST THE REAL, UH, REALIGNING OF THE, THE RESOURCES THERE.
UH, DEVELOPMENT SERVICES, THIS IS PLANNING.
WE ARE ONE, ONE THING YOU WILL SEE, THEY DID HAVE TWO COST CENTERS.
IT GIVES 'EM BETTER FLEXIBILITY WITHIN THEIR DEPARTMENT, BUT THEY ARE FULLY FUNDED.
THE, THE $6,000 DECREASES MAINLY RESULT OF STAFF CHANGEOVERS AND SALARY SAVINGS WITH THAT.
AND IT DOES FULLY SUPPORT, UH, THE CITY PLAN COMMISSION AND THE ZONING BOARD OF ADJUSTMENT FACILITY AND FLEET.
THIS IS ONE AREA WE DID SEE AN INCREASE.
UH, THEY WERE GOING FROM 13.9 MILLION TO 14.3 MILLION TO $407,000 INCREASE.
UH, A LOT OF THAT, UH, FOUR, 450,000, UH, ROUGHLY AN INCREASE OF 19,000 GOES TO CONTRACT INSPECTIONS AND MAINTENANCE SERVICES FOR STUFF LIKE ELEVATORS, GENERATORS, UH, FIRE PANELS, THOSE KIND OF THINGS.
ROUTINE MAINTENANCE IS BUDGETED 877,000.
AND THEN OUR HEATING AND OUR HEATING AND ELECTRIC AND HEATING COST COMBINED, UH, ARE INCREASING ABOUT 278,000.
UH, ONE POINT TO ABOUT 1.3 MILLION.
UH, THIS IS RELATED TO THE, UM, LIBRARY REOPENING.
UH, THE STREETLIGHT PORTION OF THE ELECTRIC BILL IS IN TRAFFIC, AND THAT'S WHERE YOU'LL SEE, UH, THAT INCREASE.
UH, THE CON UH, CUSTODIAL SERVICES, AGAIN, SUPPORTS THE LIBRARY REOPENING.
AND THEN FLEET, UH, IS BUDGETED ABOUT ROUGHLY 2.1 MILLION FOR THE MAINTENANCE AND, UH, OF OUR CITY, UH, VEHICLES AND EQUIPMENT.
THIS IS ON, UH, IN ADDITION TO, UH, FOR NEXT YEAR, THEY WILL BE ACQUIRING ABOUT $6.5 MILLION IN EQUIPMENT ACROSS ALL FUNDS THAT THEY WILL BE PURCHASING UPFITTING AND PUTTING IN SERVICE NEXT YEAR.
SO, UH, THEY GO WAY BEYOND JUST THEIR MAINTENANCE BUDGET.
GENERAL GOVERNMENT, AGAIN, THIS DOES INCLUDE THE RESERVE FOR THE PAY PLAN.
UM, ALSO RECOGNIZING ABOUT $2.2 MILLION IN SAVINGS FROM THE 7% NON-PUBLIC SAFETY ATTRITION.
UH, AGAIN, THIS DOES INCLUDE, I THINK, 26 FAKE, UH, FROZEN POSITIONS AS PART OF THAT, UH, FORMULA.
UM, WE DO EVALUATE THIS EVERY OTHER WEEK, UH, TO MAKE SURE WE'RE ON TARGET FOR THAT.
BUT THAT DOES, BY PUTTING IT IN NON-DEPARTMENTAL, GIVES US FLEXIBILITY TO HOLD THIS POSITION VACANT.
AND THEN, YOU KNOW, WITHOUT TYING A DEPARTMENT TO SPECIFIC FROZEN OR VACANT POSITIONS, IT DOES FULLY, UH, FUND OR SUPPORT NETWORK AS, UH, NETWORK COMMUNITY MINISTRIES AS WELL AS THE COUNSELING PLACE.
BOTH WILL RECEIVE ABOUT $500,000 NEXT YEAR.
UH, AND THIS IS WHERE WE DO SEE THE REDUCTION TO THE CHAMBER, GOING FROM 200,000 TO 175,000 FOR NEXT YEAR INFORMATION TECHNOLOGY, UH, GOING FROM, UH, 8.4 TO 8.6, ROUGHLY 197,000 IN DOLLARS INCREASE.
A LOT OF THIS, AGAIN, IS RELATED TO PUBLIC SAFETY SUPPORT, UH, SUPPORT OF PUBLIC SAFETY ACTIVITIES.
UM, THE, UH, SOFTWARE LICENSE IS GOING UP ABOUT 273,000.
HARDWARE MAINTENANCE IS SET ABOUT 275,000.
AND THIS ALSO INCLUDES THE REPLACEMENT OF THE, UM, UH, CITY'S, UH, LEGACY, UH, TECHNOLOGY SYSTEMS. UM, THEY ALSO, UH, ARE BEING PROVIDED WITH ABOUT $1.5 MILLION IN EQUIPMENT REPLACEMENT.
THAT'S PART OF THE 4.9 MILLION IN TOTAL EQUIPMENT AND VEHICLE REPLACEMENT THAT WE HAVE SET ASIDE.
BUT THEIR PORTION IS ABOUT 1.5 MILLION.
THE LIBRARY, UH, WE DO SEE THE 68,000 INCREASE HERE.
AGAIN, THEY ARE BEING FUNDED FOR A HYBRID OF THIS LOCATION, AS WELL AS REOPENING NEXT SUMMER, UH, DOES CONTINUE TO SUPPORT, UH, CULTURAL, CULTURALLY DIVERSE PROGRAMMING, AS WELL AS THE RICHARDSON, UH, ADULT LITERACY CENTER.
THROUGH OUR CAPITAL REPLACEMENT PROGRAM.
WE ARE, UH, DEDICATING, UM, 375,000 FOR THE REPLACEMENT OF BOOKS.
THAT IS THEIR TYPICAL, UH, DOLLAR AMOUNT, BUT WE ARE SUPPLEMENTING THAT BY 35,000 FOR THE REOPENING OF THE NEW FACILITY.
UH, RECREATION AND LEISURE, UH, 17.6 MILLION COMPARED TO 17.3 MILLION LAST YEAR.
UH, THIS DOES FULLY FUND THE, UH, OUR TRADITIONAL COMMUNITY EVENTS, UH, WITH SOME INFLATIONARY, UH, INCREASES BUILT IN THERE FOR WILDFLOWER, UH, FULL PROGRAMMING AT OUR REC CENTERS, AS WELL AS THE SENIOR CENTER.
ALL FOUR COMMUNITY POOLS ARE EXPECTED TO BE OPEN NEXT YEAR, AS WELL AS THE HEIGHTS AQUATIC CENTER, UH, WHICH IS GONNA HAVE THAT, UH, A HUNDRED, UH, $1.8 MILLION INVESTMENT THIS SUMMER OR THIS WINTER.
IT DOES IN ANTICIPATE INCREASE ACTIVITY AT THE TENNIS CENTER.
AND THEIR PROPERTY TAX DEDICATION FOR MAINTENANCE ACTIVITIES IS ABOUT 260 OR 623,000.
UH, THIS IS A SET ASIDE, A PROPERTY TAX SET ASIDE, AGAIN, MAINTAINED AT IT'S, UM, UH, FY 25 LEVEL.
THEY'RE GETTING, UH, WE ARE PROPOSING REPLACING SOME PICKUP TRUCKS AS WELL AS, UH, SOME, UH, IRRIGATION, UH, CANNONS OUT AT, UM, BRECKENRIDGE,
[02:30:01]
AS WELL AS A WOOD CHIPPER.UM, AGAIN, THE $1.8 MILLION FOR AQUATICS, UH, REFRESH AT THE HEIGHTS, UH, AQUATIC CENTER.
SO, ANY QUESTIONS ON GENERAL FUND EXPENDITURES? COUNCIL MEMBER, DWAYNE.
I, UH, JUST WANTED TO, UH, ASK, IS THIS, HAVE WE TAKEN INTO CONSIDERATION IF WE DO HAVE TO CUT ANY ADDITIONAL BUDGETS TO NOT HAVE WILDFLOWER ON SUNDAY? IS THAT IN THIS PORTION? ARE WE GETTING TO THAT? SO WHAT YOU SEE HERE IS A, A BALANCED BUDGET.
UM, IF THERE IS A DESIRE, UM, TO HAVE DISCUSSIONS AROUND, UM, YOU KNOW, FOR INSTANCE, UH, OTHER EXPENDITURES THAT YOU WOULD LIKE TO SEE, UH, INCLUDED, WE DO HAVE A LIST OF POTENTIAL CUTS THAT WE HAVE, ADDITIONAL CUTS THAT WE'VE PREPARED.
BUT AGAIN, THOSE ARE, UH, DEEPER, WIDER, OUTWARD FACING CUTS, LIKE THINGS LIKE, UM, UM, CHANGES TO THE WILDFLOWER FESTIVAL ITSELF.
SO, UM, THEY AREN'T NECESSARY WHAT YOU'RE, WHAT'S BEFORE YOU IS A BALANCED BUDGET.
UM, I SEE WE'VE GOT THE ONE HOMEWORK ASSIGNMENT SO FAR.
UM, IF THERE ARE OTHER, IF THERE ARE OTHER THINGS THAT YOU WANT US TO CONSIDER, UM, BUT, UM, BUT TRY NOT TO GO, TRY NOT TO GO TO, UH, UM, THOSE TYPES OF CUTS UNLESS IT'S ABSOLUTELY NECESSARY.
AND I JUST WANNA MAKE THAT SUGGESTION IF, IF, IF IT COMES DOWN TO IT AND WE DO HAVE TO CUT ADDITIONAL AREAS, THAT WOULD CERTAINLY, UH, BE A CONSIDERATION.
HEY, DON, I SAW, I FORGET WHAT SLIDE IT WAS, UH, THE, WE'VE REDUCED FUNDING FOR THE CHAMBER BY A TINY BIT.
I KNOW EARLIER THIS EVENING, YOU MENTIONED THAT WE WERE ABOUT POSSIBLY THINKING ABOUT MAYBE BRINGING SOMETHING IN-HOUSE MM-HMM
SO, OR I'M GUESSING WE'RE GONNA HEAR ABOUT THAT LATER AT SOME POINT.
BUT WHAT YOUR THOUGHTS ARE, IS THAT BECAUSE WE'RE GONNA MOVE THAT $25,000 INCREASE AND TURN INTO 50,000 ELSEWHERE FOR A PROGRAM? OR ARE WE GONNA USE THAT ELSEWHERE? IS IT JUST BEING TRANSFERRED TO A DIFFERENT PROGRAM OR SO? UM, WE ARE, UM, WE'RE, WE'RE PROPOSING, SO, SO IT'S ALWAYS BEEN THE PLAN.
UM, EVEN BACK IN THE SUMMER OF 2022 WHEN I PRESENTED, UH, THE PLAN TO BRING THE RE, UH, ECONOMIC DEVELOPMENT PARTNERSHIP IN HI OS AND MAKE THE RE RESEARCH AND ECONOMIC DEVELOPMENT DEPARTMENT, IT WAS ALWAYS THE PLAN TO KIND OF, UM, REDUCE FUNDING TO THE CHAMBER AS THEY STABILIZED AND BEGAN TO PROCEED.
UM, SUBSEQUENT, UM, TO OUR LAST CONTRACT NEGOTIATION, WE TOOK OVER, UM, THE EXPENSE OF NOT ONLY ORGANIZING, BUT ALSO HOSTING THE, UM, UH, BROKER DEVELOPER LUNCHES, WHICH ARE TWICE A YEAR.
AND THE GROWTH AND MOBILITY LUNCHES, WHICH ARE, I THINK ARE TWICE A YEAR OR THREE TIMES A YEAR.
UM, AND SO THOSE ARE NOW EXPENSES ON, ON OUR TAB.
SO THE REDUCTION, UM, IS, UM, UM, AN ACKNOWLEDGEMENT OF THAT AS WELL AS SOME SEED MONEY TO START, UM, EVALUATING WHAT WORKFORCE TYPE PROGRAMMING WE MIGHT WANT TO PROPOSE EITHER AS A PILOT PROGRAM THIS YEAR, OR BUILDING INTO FUTURE, UM, UM, PROGRAMS THAT MIGHT BE MORE EXPANSIVE IN FUTURE BUDGETS.
THERE WAS, AND I THINK, I DON'T REMEMBER, THERE WAS A SPOT THAT, UH, LET'S SEE, WHERE WAS IT? YOU KNOW WHAT, GO ON TO THE NEXT PERSON, MAYOR, I MAY COME BACK WITH A QUESTION.
I DON'T WANNA WASTE PEOPLE'S TIME.
UH, MAYOR, IF THERE'S NO FURTHER QUESTIONS, WE'LL GO AHEAD AND, AND, UH, TRANSITION TO OUR, UH, TAX, SORRY, BOB
WELL, UH, THIS IS, UH, THIS IS OUR FINAL SECTION, THEN WE'LL WRAP UP AND THEN WE'D LOVE TO HEAR FROM YOU.
SO A LOT OF THESE, UH, CHARTS ARE GONNA BE VERY FAMILIAR TO YOU.
UH, RIGHT IN THE CENTER THERE, YOU SEE, UH, THE CERTIFIED VALUE, YOU SEE THE, UH, NEGATIVE 1.3%, UM, UM, COMPARED, UH, TO, UH, PRIOR YEAR.
UH, THIS IS ALWAYS AN INTERESTING CHART RECALL.
UM, WHAT YOU HAVE TO DO, UH, IS YOU HAVE TO REMOVE THE TAX INCREMENT, FINANCE ZONE INCREMENT.
SO YOU SEE THE 2.7 SO THAT, SO SUBTRACTION, AND THEN YOU ADD BACK IN THE VALUES IN DISPUTE.
AND THAT'S HOW YOU ARRIVE AT THE, UH, 23.855 NUMBER THERE THAT'S AVAILABLE, UM, TO THE GENERAL FUND AND FOR DEBT SERVICES.
AND YOU SEE THE NUMBER THERE ON THE, THE RIGHT HAND SIDE OF ABOUT $176 MILLION OF NEW CONSTRUCTION, NOT SUBJECT TO, UH, THE, UH, PROPERTY TAX, UH, CAP.
UM, WE'VE TALKED A LOT ABOUT COMMERCIAL TONIGHT, SO I'M GONNA REALLY FOCUS ON THE NEXT SLIDE HERE.
UH, JUST ON THE RESIDENTIAL SIDE.
SO EIGHT, UH, JUST OVER 8% OF OUR RESIDENTIAL ACCOUNTS, UH, SAW MARKET VALUE INCREASE OF 10% OR MORE.
THAT IS, UH, QUITE A BIT DOWN, UH, FROM PRIOR YEARS.
THAT'S A, UH, TRUE SIGNAL THAT THINGS ARE STARTING TO LEVEL OUT, NOT WITHSTANDING, UH, 40, JUST SHY OF 43% OF RESIDENTIAL ACCOUNTS STILL QUALIFY FOR THAT, UH, HOMESTEAD CAP BLOOMING THE TAXABLE INCREASE, UH, TO 10%.
SO WHAT THAT MEANS IS, IS WE'VE KIND OF USED, UH, JUST KIND OF THE SHORT TERM OF PENT UP VALUE, UM, BECAUSE OF THAT
[02:35:01]
10% CAP IN PRIOR YEARS, THERE WAS THAT REMAINING VALUE IN SOME OF THOSE ACCOUNTS.UM, AND UM, SO THAT'S HOW YOU SEE THE BIG DIFFERENCE THERE.
THE, UH, CURRENT SENIOR TAX EXEMPTION OF $160,000, WHICH YOU HAVE PREVIOUS SEVERAL MONTHS AGO, THAT'S, UH, PROVIDING, UH, NEARLY A 33% PROTECTION.
RECALL YOUR FINANCIAL POLICY, UH, IT SEEKS TO ACHIEVE A 30% PROTECTION FOR SENIORS.
AND, UM, UH, INTERESTINGLY HERE, UH, 30, UH, 3% OF ALL THE RE UH, ALL THE RESIDENTIAL ACCOUNTS THAT WE ARE, UH, INCLUDING HERE, UH, NOW HAVE THAT SENIOR TAX EXEMPTION.
UM, THE, UH, MARKET AVERAGE, UH, HOME VALUES, THE MARKET IS UP ABOUT, UH, JUST ABOUT 1.76% TO 4 83, 9 93, AND THEN THE TAXABLE VALUE IS UP 6%, UH, TO 4 11 0 65.
IF YOU LOOK AT, UH, IMPORTANT CHART HERE, THE COMMERCIAL VERSUS RESIDENTIAL TAX VALUE SPLIT, UH, ALMOST NO CHANGE, UH, YEAR TO YEAR FROM, UH, 20, UH, FY, UH, 20, UM, UM, UH, FIVE TO FY 26.
AND, UM, SO THAT STAY AT THE 58 42.
UH, SO LET'S TALK ABOUT THE PROPERTY, UH, TAX RATE, UH, RECALL, UH, THE, UH, PROPERTY TAX RATE IS JUST THE ADOPTED RATE ASSESSED ON THE TAXABLE VALUE OF REAL BUSINESS, UH, PROPERTY BPP.
IT HAS THE TWO COMPONENTS, O AND M OR M AND O THAT IS, THAT GOES TO, UH, OUR GENERAL FUND.
AND THEN THE DEBT RATE THAT, THAT GOES TO THE DEBT SERVICE FUND TO PAY OUR OUTSTANDING DEBT.
THE NO NEW REVENUE RATE WOULD BE, UM, THE, UH, RATE THAT WOULD GENERATE APPROXIMATELY THE SAME REVENUE AS THE PRIOR YEAR.
AND THE VOTER APPROVAL RATE IS THE HIGHEST RATE THAT YOU AS A COUNCIL CAN ADOPT WITHOUT A MANDATORY RATIFICATION ELECTION.
UH, RECALL THIS RATE ALLOWS, UH, A CITY TO COLLECT THREE AND A HALF PERCENT MORE REVENUE FROM PROPERTY TAXES THAN THE PRIOR YEAR.
UH, UNLESS THE CITY HAS AN INCREMENT, WHICH WE'VE HAD SEVERAL TIMES IN THE PAST COUPLE YEARS TO APPLY TO THAT RATE, UH, INCREMENT IS CREATED WHEN A CITY ADOPTS A PROPERTY TAX RATE LOWER THAN THE VOTER APPROVAL RATE.
SO, UH, IF YOU WOULD ADOPT A, UM, RATE LOWER THAN THE VOTER APPROVAL RATE THIS YEAR, FOR INSTANCE, HOWEVER, WHATEVER THAT DELTA IS WOULD BE THE INCREMENT THAT WOULD CARRY OVER, UH, TO, UH, TO THE NEXT YEAR TO BE APPLIED TO FUTURE TAX RATES WITHIN 3D THREE YEARS IF HE CHOSE TO DO SO.
UH, WE CURRENTLY DO NOT HAVE ANY UNUSED INCREMENT.
UM, I BELIEVE WE USED A LITTLE BIT OF IT LA WITH THE REMAINING PORTION LAST YEAR.
UM, AND THEN OF COURSE, THE PUBLISHED, UH, VOTER APPROVAL RATE INCLUDES THE TOTAL INCREMENT AVAILABLE, UH, TO, TO THE CITY.
SO HERE IS, UH, YOUR TAX RATE OVERVIEW.
SO YOU SEE THE CURRENT TAX RATE THERE AT 54 2 1 8, THE VOTER APPROVAL RATE AT 54 5 2 2.
SO THERE IS A LITTLE BIT THERE.
SO WHAT THAT MEANS, IF YOU LOOK AT THE RIGHT HAND COLUMN, IS THAT MEANS THAT YOU COULD GO UP TO, TO THE 5, 4, 5 2 2, YOU COULD, YOU COULD INCREASE THE TAX RATE WITHOUT HAVING A RATIFICATION ELECTION.
AND SO, UH, THE DELTA IN THAT, THAT WOULD GENERATE ABOUT 750, I'M SORRY, 725,000 ADDITIONAL DOLLARS IF YOU, UH, OPTED TO, TO GO THAT ROUTE.
UM, I'M NOT RECOMMENDING THAT I'M RECOMMENDING THAT YOU STAY AT THE CURRENT TAX RATE.
UM, INTERESTINGLY AND IMPORTANTLY BECAUSE IT'S, IT'S SOMETHING THAT, UM, I, I BELIEVE IS, UM, IT, UH, MADE PUBLIC, UM, JUST TWO SECONDS ON THE NO NEW REVENUE RATE.
THIS IS A VERY, VERY COMPLICATED THING, UM, THAT, UH, THANKFULLY KENT AND TODD HAVE TO CALCULATE.
UM, BUT THE RATE THAT YOU SEE THERE, THE NO NEW REVENUE THAT, THAT YOU SEE THERE, IS THAT THE RATE AS COMPUTED VIA THE TRUTH AND TAXATION CALCULATION.
UM, THE PROBLEM IS THE DEBT RATE THAT YOU SEE THERE IS IN INSUFFICIENT TO MEET, UM, OUR DEBT SERVICE REQUIREMENTS.
AND THERE, THEREFORE, WHAT YOU WOULD HAVE TO DO IS YOU WOULD HAVE TO INCREASE THE DEBT PORTION OF THE OVERALL RATE AND DECREASE THE M AND O PORTION OF THE OVERALL RATE.
IF YOU DID THAT TO THE 30, UH, 0.3 7, 3 6, WE'D ACTUALLY LOSE $4 MILLION IN GENERAL FUND REVENUE.
AND SO THAT WOULD BE, YOU KNOW, WE COULD, IF YOU WANTED TO CONSIDER THAT, WE COULD CONSIDER THAT, BUT WOULD BE A REALLY DIFFERENT CONVERSATION THAN WE'RE HAVING TONIGHT.
AND SO, BUT IMPORTANTLY, WE WANTED TO ACKNOWLEDGE THAT PUBLICLY BECAUSE THOSE, THOSE ARE YOUR THREE OPTIONS.
UM, AT THIS JUNCTURE, IF YOU DECIDE TO STICK WITH THE CURRENT TAX RATE, UM, THAT DIFFERENCE THERE BETWEEN THE VOTER APPROVAL RATE AND THE CURRENT TAX RATE WOULD BE POTENTIAL INCREMENT THAT COULD BE UTILIZED NEXT YEAR.
SO, SO THAT IS INCREMENT THAT COULD BE AVAILABLE NEXT YEAR.
SO IF WE WENT UP 3.5 SOMETHING, IT WOULD ALLOW US TO TAKE THAT EXTRA INCREMENT IS WHAT THAT IS.
WITHOUT HAVING TO GO TO THE VOTERS.
SO, UH, I'M SORRY, HOW LONG, I MEAN, HOW LONG DOES THE INCREMENT LAST AGAIN? WE GET THREE YEARS, UH, CURRENTLY THREE YEARS.
UM, SO IF YOU LOOK AT JUST, UH, JUST TO, JUST TO CO COMPARE US, UH, TO OUR, OUR, UH, PURE CITIES HERE.
CAN GO BACK FOR JUST A SECOND.
JUST SO WE HAVE ALL THE INFORMATION.
COULD, IF, IF WE DECIDED TO GO UP BY THE 1% FOR ALL OF THEIR EMPLOYEES MM-HMM
[02:40:02]
WHAT THE DIFFERENCE, IF, IF WE WANTED TO GO THIS ROUTE VERSUS CUTTING SOMETHING BASED ON WHAT YOU TALKED ABOUT, COULD YOU TELL US WHAT, WHATEVER THE DIFFERENCE BETWEEN THE 5.54218 AND WHATEVER THE NEW YEP.5 45 0.5 4, 2 2, YOU KNOW, THREE OR SOMETHING LIKE THAT, IF YOU COULD, WE WOULD TAKE, TELL US THAT, BECAUSE THAT WOULD GIVE US AN OPTION.
THAT'S AN OPTION WE COULD LOOK AT.
I'M NOT SUGGESTING IT, I'M JUST SAYING IT WOULD BE SOMETHING WE WOULD HAVE IT ALREADY FOR TOMORROW NIGHT.
WE'LL, WE'LL START OFF OUR BRIEFING TOMORROW NIGHT BY PROVIDING THAT AND, UM, AND ALSO JUST KIND FOLLOWING UP ON THE OTHER, UH, QUESTIONS THAT RELATED.
SO JUST, UH, JUST A, A COMPARISON AGAIN, UM, UH, LAST YEAR OUR, OUR TAX RATE WAS SIX LOWEST AMONG OUR PEER CITIES, AND, UH, WAS, UM, ABOUT, UM, UH, 2 CENTS, UH, UH, UH, A LITTLE BIT OVER 2 CENTS BELOW THE AVERAGE RATE.
UM, IF YOU LOOK AT OUR TAX RATE, UH, COMPARED TO OUR HISTORY, UM, WE'RE BACK, UH, TO A, UH, A RATE THAT WAS, UH, JUST BEFORE, UH, THE 2006 BOND PROGRAM.
RECALL THE 2006 AND 2010 BOND PROGRAMS WERE TAX RATE, INCREASED BOND PROGRAMS. AND SO IN 2006, UH, THE RATE WENT UP TO THE 5 7, 506.
I BELIEVE AT THAT TIME, UH, KENNA WAS A EITHER A FIVE OR A SIX, UH, INCREASE.
AND SO, UH, A ACTUALLY NOW WE'RE BACK TO A 2000, UH, TO A RATE TAX RATE THAT WE HAVEN'T BEEN, UH, AT IN, UH, SINCE 2005.
UM, THIS IS WHAT YOUR ESTIMATED TAX BILL WOULD LOOK LIKE.
UM, UM, SO YOU SEE TWO DIFFERENT BILLS, OBVIOUSLY TWO DIFFERENT COUNTIES, UH, DIFFERENT, UH, COMPONENTS TO EACH BILL.
UH, BUT FOR THE CITY OF RICHARDSON, UM, ABOUT, UH, FOR THE, UH, AVERAGE, UM, UH, IT IS ABOUT 22, 2,229, ABOUT 25% OF YOUR DALLAS COUNTY BILL, AND ABOUT JUST SHY OF 30% OF YOUR COLLIN COUNTY BILL.
UM, SO, UH, OBVIOUSLY, UH, YOU'RE VERY FAMILIAR WITH THIS.
ONCE THE PUBLIC HEARING IS CALLED, UH, TOMORROW NIGHT, THE CITY IS REQUIRED BY STATE LAW TO POST THE NOTICE ON THE PUBLIC HEARING WITH THE VARIOUS TAX RATES.
UM, NOTICE IS ALSO POSTED ON THE CITY WEBSITE.
YOU SEE THE EXCERPT FROM THE NOTICE, WHICH WAS, UM, MADE LAW BACK IN THE 86, UH, LEGISLATURE.
UM, MY RECOMMENDATION, AS I MENTIONED, WAS TO SET THE PUBLIC HEARING ON SEPTEMBER 8TH, 2025 FOR A PROPOSED TAX RATE OF 5 4 2 1 8.
NOW, IF YOU WANTED TO PROVIDE YOURSELF WITH MAXIMUM FLEXIBILITY, YOU COULD CALL THE PUBLIC HEARING FOR THE TAX RATE OF 5 4 5 2 2.
THAT DOESN'T LOCK YOU IN TO ADOPTING THE 5 4 5 2 2.
THAT WOULD JUST GIVE YOU THE LATITUDE AS MAYOR PRO TEM SAID TO CONSIDER THINGS.
THAT WASN'T MY INITIAL RECOMMENDATION, BUT THAT'S A NUANCE THAT YOU MIGHT WANNA THINK ABOUT TONIGHT.
WE COULD TALK ABOUT TOMORROW AFTER WE HAVE THAT INITIAL CONVERSATION.
UM, AGAIN, ADOPTING, UH, OR CALLING THE PUBLIC HEARING FOR A TAX RATE AT 5 4 5 2 2 DOES NOT LOCK YOU IN.
YOU CAN REDUCE THAT TAX RATE BACK DOWN TO THE CURRENT TAX RATE.
THAT'S THE WAY TO GIVE YOURSELF MAXIMUM FLEXIBILITY.
THAT'S THE ONLY REASON I MENTIONED THAT.
UH, SO JUST A COUPLE FINAL THOUGHTS.
SO TRY A LITTLE BIT DIFFERENT APPROACH HERE.
UH, WE TRIED THIS WITH OUR, OUR TOWN HALL MEETINGS, OUR INTERNAL TOWN HALL MEETINGS, AND THEY WORKED PRETTY GOOD.
UH, IF YOU WERE GONNA TRY TO SUMMARIZE, UH, THIS, THIS BUDGET, UH, AT LEAST THE GENERAL FUND PORTION OF IT, YOU WOULD LOOK AT A STARTING FUND BALANCE OF ABOUT 45, UH, 4 8 3.
UM, THAT'S WHAT WE STARTED WITH, UH, $181.324 MILLION OF REVENUE, UH, OUR EXPENDITURES AND OUR TRANSFER OUTS, WHICH ALSO COUNTS AS THEY, THEY ALSO COUNT AS EXPENDITURES.
UM, AND, UH, WE ARRIVED BACK AT A 90.99 DAY FUND BALANCE, LIKE BOB MENTIONED, UH, ABOUT 230 ISH THOUSAND DOLLARS, UH, SHY OF THE ORIGINAL FUND BALANCE THAT WE, UH, THAT WE STARTED WITH.
HOW DID WE DO THAT? UM, IF I HAD TO TRY TO SUMMARIZE THIS, UM, I WOULD SAY, UH, THIS IS A, YOU KNOW, IF YOU LOOK AT THIS AS A LEDGER, UH, THESE TWO THINGS HAVE TO BALANCE ESSENTIALLY WHAT WE WERE ABLE TO DO.
AND AGAIN, I WANT TO, UH, ECHO BOB'S, UH, COMMENTS.
UH, UH, DEPARTMENTS, UH, DID A, JUST, JUST A TREMENDOUS JOB ON THEIR COST CONTAINMENT.
UH, A LOT OF THAT INCUR IN INVOLVED MAINTAINING FUNDING LEVELS, UH, IF NOT AT FY 25 LEVELS, IN SOME CASES AT FY 24 LEVELS.
UH, WE CONTINUE, UH, OUR CORE PLAN CONTRIBUTION ADJUSTMENT.
I RECALL, UM, CORE PLAN, UM, WITH A, UM, EXTREMELY, UM, A ROBUST, UH, FUND BALANCE.
AND SO, UH, AS A BALANCING STRATEGY LAST YEAR, WE REDUCED THE CONTRIBUTION FROM THE GENERAL FUND AND CORE PLAN FOR BY A HUNDRED DOLLARS PER EMPLOYEE PER MONTH.
UM, I'LL TELL YOU, UM, YOU KNOW, THAT'S A HIGH PRIORITY FOR ME TO START RESTORING THAT.
UM, UM, I MENTIONED THE ASSUMED, UH, PERSONNEL SAVINGS OF 7%.
THAT DOES INCLUDE AT A MINIMUM, 26 POSITIONS FROZEN.
UM, AND SO THAT'S AN, AND THAT'S IN THE GENERAL FUND.
UM, SO THAT'S AN IMPORTANT, UM, THAT'S AN IMPORTANT, UM, THING THAT JUST TO REMEMBER, UM, UH, UM, WE ARE, AS YOU SAW THROUGHOUT THE NIGHT, WE'RE FUNDING, UH, SELECT NON-REOCCURRING EXPENSES.
UM, UH, LIKE THE, UH, THE SCOPES FOR RPD THROUGH SPECIAL PROJECT FUNDS, UH, REDUCED EQUIPMENT REPLACEMENT FUND TO THE LEVEL THAT WAS ACTUALLY REQUIRED, UM, FOR
[02:45:01]
THE FY 25 NEEDS IN PRIOR YEARS.WE'VE SET IT AT, UM, THE EQUIVALENT OF, OF, UH, A FULL TRANSFER OUT.
UM, AND, UH, BUILT A, A VERY, VERY ROBUST FUND BALANCE NOW.
AND SO NOW WE'RE JUST RIGHT SIZING THAT I THINK A VERY EFFECTIVE AND SMART TOOL, PARTICULARLY IN A TIME LIKE THIS.
UM, SAVINGS FROM, I MENTIONED, UH, UH, SAVINGS FROM SENIOR STAFF LEVEL, UH, POSITIONS BEING REPLACED BY LESS TENURED STAFF AND PUBLIC SAFETY WAS A, A BIG HELP.
UH, THERE WAS A, A REDUCTION, A NOTEWORTHY REDUCTION IN NON-DEPARTMENTAL SPONSORSHIPS AND PATRONAGE, PATRONAGES
UM, SO THESE ARE THINGS, UH, FOR INSTANCE, UH, LIKE THE CHAMBER.
UM, YOU KNOW, WE'VE BEEN VERY FORTHCOMING, UH, WITH FOLKS IN THE LAST FEW MONTHS, AND WE'LL CONTINUE TO BE, UH, VERY FORTHCOMING, UM, WITH, UH, OUR ABILITY TO SPONSOR, UM, AT, UH, SAME LEVEL.
DEFINITELY, UM, NOT INCREASING SPONSORSHIPS RIGHT NOW.
UM, UH, WE REALIZE THAT A LOT OF, UH, NONPROFITS AND A LOT OF ORGANIZATIONS IN THE COMMUNITY, UH, ARE, ARE GOING THROUGH, UM, UM, YOU KNOW, UH, THEIR OWN FINANCIAL CONSIDERATIONS, BUT, UH, IT ONLY SEEMS APPROPRIATE TO ADJUST THESE WHEN WE'RE ASKING INTERNALLY FOR SUCH, UH, UH, SIGNIFICANT ADJUSTMENTS.
AND WE'RE JUST TRYING TO BE FAIR AND EQUITABLE IN OUR APPROACH TO THIS.
UM, AND THEN, UH, THE MARKET BASED FEE ADJUSTMENTS, UH, THAT BOB COVERED, THOSE ARE A KEY COMPONENT, UH, 370 ISH THOUSAND DOLLARS WORTH OF NEW REVENUE THAT WAS IMPORTANT TO BALANCING THIS AND SO'S YOUR DECISION.
BUT IF WE, IF YOU DECIDE NOT TO MOVE FORWARD WITH ANY OF THOSE, WE NEED TO, WE WILL NEED TO HAVE A CONVERSATION ABOUT THAT AND, AND FIGURE OUT HOW, UH, WE, WE ACCOUNT FOR THAT ON THE OTHER SIDE OF THE LEDGER.
UM, I WON'T GO THROUGH THIS IN GREAT, UH, DETAIL, BUT, YOU KNOW, THE SAME PROPERTY TAX RATE, INCREASING THE EXEMPTION IS A COST.
UM, RIGHT? I MEAN, WE, WE ALL RECOGNIZE THAT.
YOU SEE THE COMPENSATION ADJUSTMENTS, UM, VERY EXCITED.
UM, AND I'LL TELL YOU, UH, THIS IS REALLY IMPORTANT.
UM, THINK BACK TO THE CHART WHERE I SHARED.
45% OF OUR STAFF HAVE LESS THAN FIVE YEARS EXPERIENCE.
WE HAVE GOT TO RESTORE, AND I'M PROUD THAT WE ARE THANKFUL WE'RE ABLE TO RESTORE EMPLOYEE PROFESSIONAL DEVELOPMENT.
WE HAVE SO MANY GOOD YOUNG PROFESSIONALS, BUT THEY NEED, UM, THE OPPORTUNITY TO DEVELOP THEIR SKILLS AND THEY NEED SUPPORT, UH, FROM THEIR PROFESSIONAL ASSOCIATIONS.
WE'RE MAINTAINING FUNDING FOR STREETS, ALLEYS, PARKS, FACILITIES, TRANSPORTATION, ACTUALLY INCREASING TRANSPORTATION.
AND IT, UH, THE, I HEARD YOU IN MY ONE-ON-ONES, UH, WITH, FROM YOU, AND THAT WAS IMPORTANT TO YOU.
AND WE WORKED HARD NOT TO REDUCE THOSE.
WE'RE REDUCING, AS I MENTIONED, IS THE EQUIPMENT REPLACEMENT FUND OR THE CAPITAL REPLACEMENT FUND.
UM, UM, AND THEN FIRE FINALLY, UH, UH, AN IMPORTANT COMPONENT TO THIS, UH, AS WELL AS, UH, UH, FIRE, FIRE ACADEMY CLASS 46.
AND SO, UH, YOU KNOW, THERE ARE OTHER ELEMENTS TO IT, BUT IF YOU WERE GONNA BOIL IT DOWN TO THE MOST CONSEQUENTIAL ELEMENTS, THOSE, THOSE ARE THE MOST CONSEQUENTIAL COMPONENTS TO THIS BUDGET ON BOTH SIDES, UM, OF THE LEDGER LEDGER.
UH, TOMORROW, JUST AS A PREVIEW, UH, WE'VE GOT A LITTLE BIT OF HOMEWORK THAT WE'LL DO, AND WE MAY HAVE SOME MORE COMING OUT OF ANY DISCUSSION THAT YOU HAVE.
UH, WE'LL KICK OFF WITH AN INTRODUCTION.
UM, WE'RE GONNA COVER OUR, OUR FIVE OTHER, UH, PRIMARY FUNDS.
UM, I'M GONNA, UH, SHARE A LITTLE BIT, UM, ABOUT OUR, UH, SERIES 27, I'M SORRY, SERIES 26, UH, DEBT PLAN.
AND THEN I ALSO WANNA HAVE A LITTLE BIT OF A DIALOGUE AROUND, UH, FUTURE BOND PROGRAM, UM, AND, UM, WHAT THAT MIGHT LOOK LIKE, WHAT IT TAKES TO PREPARE FOR THAT AND TIMING.
UM, AND I'LL GIVE YOU A, A LITTLE BIT OF A, OF A, OF A SNEAK PREVIEW.
THE TIMING, UH, ALSO COULD PLAY INTO A CHARTER DISCUSSION, ELECTION DISCUSSION THAT WE MIGHT WANNA HAVE.
AND I REALIZE IT'S SHORT TIMING, BUT, UH, UH, IT'S, UH, IT COULD BE AN INTERESTING WAY OF, UM, MAKING, UH, YOU KNOW, THE BEST USE OF AN ELECTION AND MAKING IT REALLY EFFECTIVE IF THAT'S WHAT YOU DECIDE YOU WANT TO DO.
UH, AND THEN, UH, THEN WE'LL CONCLUDE THE NIGHT.
AND, UM, AND, UM, MAYOR, I, UH, JUST WANNA THANK YOU.
I REALLY APPRECIATE, UM, UM, THE, THE DIALOGUE TONIGHT.
AND WE STAND BY FOR FEEDBACK AND QUESTIONS AND ANY DIRECTION YOU WANNA SHARE.
JUST, I CAN'T REMEMBER MR. MAGNER IF IT WAS DURING A BUDGET WORKSHOP OR THE ACTUAL PRESENTATION, YOUR BUDGET, BUT YOU'VE BROUGHT US AT LEAST ONE OR TWO SLIDES ON ALL THE OTHER FUNDS.
WILL THAT BE TOMORROW OR WILL BE A PART OF YOUR BUDGET PRESENTATION? IT WILL BE PART OF THE BUDGET PRESENTATION ON, I THINK THE 18TH.
BUT YOU'LL RECEIVE THAT, YOU'LL RECEIVE THAT IN ADVANCE, UH, THE PREPARATORY, UH, PACKET IN ADVANCE OF THAT BRIEFING.
THAT'LL ALL BE INCLUDED AS WELL.
COUNCIL MEMBER MORRIS, THANK YOU.
UH, DON, BOB CHIEFS, UH, EVERYBODY INVOLVED.
I KNOW THERE'S SO MANY PEOPLE THAT TOUCHED THIS GREAT JOB.
WHAT WAS THE TOTAL BUDGET? DID I MISS THAT? OR IS THAT COMING OUT ON THURSDAY? IS THAT NOT SOMETHING WE'RE SHARING TODAY? WE ARE GOING TO, WE'LL, WE'LL HAVE THAT, UM, YOU'LL RECEIVE THAT WHEN WE, UH, SEND YOU, UM, THE, THE BUDGET INFORMATION AS I FILE.
UH, WE'RE STILL REFINING SOME OF BOB.
WE'VE GOT, UH, HOW MANY OTHER, HOW MANY OTHER, UH, FUNDS? UH, LOTS.
AND SO WE'RE STILL, UH, UH, COUNCILMAN, WE'RE STILL REFINING A LOT OF THOSE AND, UH, UH, WORKING ON, UM, UH, PLANS
[02:50:01]
FOR EACH OF THOSE.AND SO WE'LL HAVE THAT, UH, THAT'LL, THAT'LL BE PART OF THE FILE BUDGET, AND THEN YOU'LL RECEIVE THAT IN YOUR PACKET, UH, IN ADVANCE OF THE PRE THAT MONDAY PRESENTATION.
I REMEMBERED THE QUESTION I HAD EARLIER THAT I MOVED ON.
CAN WE GO TO SLIDE 84? UM, THE SECOND BULLET POINT SAYS, REDUCES NON-DEPARTMENTAL ALLOCATION.
UM, DID WE CHANGE THE WAY WE'RE DOING THAT? I THINK I REMEMBER KIND OF ON OUR ONE, OUR ONE-OFFS, WE MAYBE DISCUSSED SOMETHING AROUND THERE.
UH, WAS THAT, CAN YOU KIND OF EXPLAIN WHAT THAT IS? AND DID WE TOTALLY ELIMINATE THAT, OR IS THAT SOMETHING WE'RE CREATING A NEW PROGRAM TO MAYBE APPLY FOR AND SAY, THIS IS HOW MUCH WE'RE GONNA GIVE, VERSUS DOING ALL THESE KIND OF ONE-OFFS GRANTS TO ORGANIZATIONS THAT THIS IS, THIS IS MORE SAME THING, OR WE'RE TALKING TWO DIFFERENT, THIS IS MORE ALONG THE LINES OF, UM, THINGS LIKE, UM, SPONSORING, UH, GOLF TOURNAMENTS OR ANNUAL EVENTS OR, UM, YOU KNOW, THE, UH, THE RECEPTIONS, UM, THINGS OF THAT NATURE THAT, THAT, THAT WAS, UM, I APOLOGIZE.
THAT WAS THE, THE COMMENT I WAS, I WAS ALLUDING TO EARLIER.
UH, IN THE NON-DEPARTMENTAL, WE'VE, WE'VE MADE, ACTUALLY, I'VE ALREADY STARTED FOR, FOR A COUPLE MONTHS NOW.
I'VE ALREADY STARTED, UH, JUST, UH, RETHINKING HOW MANY TABLES ARE WE BUYING AT AN EVENT? UH, HOW MANY EXTRA SEATS ARE WE BUYING? YOU KNOW, DO, ARE WE IN? AND, AND JUST, JUST, YOU KNOW, IT, IT'S SURPRISINGLY
UM, YOU CAN, YOU CAN, YOU CAN ACTUALLY, UH, SAVINGS CAN ADD UP, UH, RATHER QUICKLY.
AND SO THAT'S WHAT THAT BULLET REFERS TO.
NOT, NOT THINGS LIKE, UM, NOT, NOT THINGS LIKE THE NETWORK ANNUAL PAYMENT OR THE COUNSELING PLACE.
THESE ARE, THESE ARE MORE, YEAH, I KNOW I'VE BEEN TO, OBVIOUSLY WE ALL HAVE BEEN TO MANY EVENTS IN OUR, IN OUR SERVICE.
AND I, THERE, YOU KNOW, NOT TO CALL ANYONE, BUT THERE'S ONE OR TWO THAT MAYBE I'VE ATTENDED.
I'M LIKE, UH, YOU KNOW, IS THIS REALLY HELPFUL TO WHAT KIND OF THE BIGGER GOAL IS? DO WE EVER, WHEN WE DO THOSE KIND OF ONE-OFFS, DO WE LOOK AT LIKE, I DON'T, I DON'T WANNA SAY ROI, BUT DO WE LOOK AT ROI AND KIND OF SEE WHETHER THAT ORGANIZATION'S ACTUALLY USING THE MONEY TO, YOU KNOW, CREATE SYNERGY TO CREATE MORE MONEY? YOU KNOW, IS IT A MULTIPLIER TYPE THING? ABSOLUTELY.
I MEAN, WHAT WE'LL DO IS, UH, PARTICULARLY IF IT'S A NEW OP, YOU KNOW, IF IT'S A NEW EVENT THAT WE SPONSOR, A NEW PROGRAM, A NEW AWARD, WHATEVER THE CASE MAY BE, UM, BEFORE WE DO THAT AGAIN, WE'LL HAVE A, A ONE-ON-ONE MEETING WITH THEM AND ASK THEM, UM, YOU KNOW, THIS THE, TO YOUR POINT, YOU KNOW, THE SUCCESS OF THE PROGRAM WITH A WHAT, BECAUSE, YOU KNOW, WE'LL BE A PART OF THE OVERALL MONEY THAT THEY'LL RAISE.
YOU KNOW, AND, AND SO, BUT SHORT ANSWER TO YOUR QUESTIONS, DEFINITELY WE WILL DO A, WE'LL DO A FOLLOW UP MEETING, UM, AND, AND REALLY THAT THE EVENT, THE PURPOSE OF, UM, UH, THE EVENT WAS THAT ACHIEVED, UH, YOU KNOW, ARE THEY, ARE THEY DOING WHAT THEY SAY THEY'RE GONNA DO WITH IT BEFORE WE WOULD, UM, FOLLOW UP WITH ANOTHER SPONSORSHIP? I APPRECIATE YOUR ANSWER AND I APPRECIATE WHAT EVERYBODY DOES TO, YOU KNOW, UH, GROW, BUT GROW, UH, CONSERVATIVE AND MAKE SURE WE COULD PAY THE BILLS AND AT THE SAME TIME, HELP OUR RESIDENTS NOT HAVE TO PAY IN MORE THAN THEY THEY SHOULD.
SO THANK YOU MAYOR
UM, ECHO, GREAT JOB BY EVERYONE.
I KNOW A LOT OF PEOPLE WERE INVOLVED IN THIS.
ONE QUICK QUESTION THAT, THAT POPPED INTO MY HEAD THAT I WANTED TO ASK REAL QUICK, AND I'LL ASK YOU, DON, AND ALSO CHIEF TUTTLE, DO WE HAVE ANY, I'LL USE THE WORDS INTELLIGENCE SORT OF AN OXYMORON WHEN I'M GONNA ASK THIS QUESTION.
UM, RIGHT NOW, I KNOW THERE'S THE THREE YEAR THAT THE LEGISLATURE SAYS WE CAN UTILIZE THE DIFFERENCE BETWEEN THE CURRENT TAX RATE AND THE VOTER APPROVAL RATE.
DO WE HAVE ANY INTELLIGENCE THAT THAT COULD POSSIBLY BE STRIPPED FROM US IN THE NEXT LEGISLATIVE SESSION OR EVEN DURING, 'CAUSE I KNOW THERE'S, THERE'S DISCUSSION ABOUT, UM, TAX AND ALL OF THAT AND EVEN THESE SPECIAL SESSIONS COMING UP.
SO JUST, JUST WANNA ASK THAT QUESTION.
WE HAVE ANY, IN ANY, ANY INTELLIGENCE OUT THERE THAT THAT COULD CHANGE, YOU KNOW, KIND OF ON A MOMENT'S NOTICE? MAYOR PROAM, I DO NOT HAVE ANYTHING THAT FORECASTS THAT, THAT'S A POSSIBILITY.
UM, YOU KNOW, AS, AS WE KNOW, IT CAN BE A FLOOR AMENDMENT TO STRIP THAT OR TO ADD THAT.
UM, AT ANY GIVEN TIME, I'M NOT HEARING ANYTHING.
UM, BUT I'LL, I'LL, UH, STAY ABREAST OF THAT AND IF I DO, I'LL, I'LL LET, UM, MR. MAGNER KNOW AND PASS.
I MEAN, IT WOULD, I, I WOULDN'T BE SURPRISED AT ALL IF THEY TRIED TO REDUCE THE NUMBER OF YEARS THE INCREMENT WAS VALID FOR, OR IF THEY JUST TRIED TO TAKE AWAY THE INCREMENT ALTOGETHER.
I MEAN, YEAH, IT'S, JUST WANTED TO ASK THAT QUESTION 'CAUSE I KNOW MAYOR MADE A REALLY GOOD POINT THAT WE HAVE THREE YEARS TO USE IT, BUT THAT'S WHAT TRIGGERED MY BRAIN OF, WE'VE SEEN SOME INTERESTING THINGS HAPPEN AT THE LEGISLATURES.
THAT'S WHY I WANTED TO ASK THE QUESTION.
SEEING NO OTHER QUESTIONS, UH, THIS CONCLUDES THE FIRST NIGHT OF THE BUDGET WORKSHOP.
UH, WE WILL RECESS THIS MEETING UNTIL TOMORROW, TUESDAY, AUGUST 5TH, WHEN WE WILL RECONVENE AT 6:00 PM THIS MEETING IS RECESSED AT 8:56 PM.