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CAN YOU SEE ME NOW? OH, YES, WE CAN.[CALL TO ORDER]
UM, THIS MEETING OF THE RICHARDSON CITY COUNCIL WILL CONVENE, UH, THE BUDGET WORKSHOP AT 6:00 PM UM, ITEM A IS PUBLIC COMMENTS ON AGENDA ITEMS AND VISITORS FORUM.WE ARE NOT IN RECEIPT OF ANY CARDS IN ADVANCE OF THE 5:00 PM DEADLINE, AND I DON'T THINK WE HAVE ANYONE SIGNED UP TO SPEAK TONIGHT.
WE HAVE A LIGHT THANK AMY LIGHT CROWD.
I DON'T THINK WE HAVE ANYONE THAT WANTS TO SPEAK.
[B. CONTINUE TO REVIEW AND DISCUSS FISCAL YEAR 2025-2026 BUDGET FOR OPERATIONS, CAPITAL IMPROVEMENTS, AND DEBT SERVICE ]
TO ITEM B.CONTINUE TO REVIEW THE DIS AND DISCUSS FISCAL YEAR 20 25, 20 26, BUDGET FOR OPERATIONS, CAPITAL IMPROVEMENT AND DEBT SERVICE.
UH, VERY EXCITED TO CONTINUE OUR DISCUSSION FROM LAST NIGHT.
AS I MENTIONED TO YOU, UH, AT THE CONCLUSION OF LAST NIGHT'S MEETING, UH, TONIGHT WE'LL BE FOCUSING ON, UH, OUR, UH, UH, FIVE OTHER LARGEST FUNDS, UH, WATER SEWER DRAINAGE, SOLID WASTES, GOLF, AND, UH, HOTEL MOTEL.
UH, IN ADDITION TO THAT, I'LL BE SHARING OUR, UH, CAPITAL PLAN FOR SERIES 26.
AND THEN WOULD ALSO LIKE TO, UH, AT LEAST, UH, UH, BEGIN THE DISCUSSION AROUND, UH, POTENTIAL NEXT BOND PROGRAM AND, UH, SOME CONSIDERATIONS WITH RESPECT TO, UH, UPCOMING ELECTION OPTIONS FOR YOU.
UM, LET ME, UH, UH, QUICKLY, UH, UH, TURN TO JUST A RECAP OF LAST NIGHT.
UH, AS, UH, WE TALKED ABOUT SEVERAL NATIONAL AND INTERNATIONAL FACTORS THAT I FELT WERE IMPORTANT TO, UH, ADD FOR CONTEXT.
UH, WE ALSO LOOKED AT A LOCAL ECONOMIC OUTPUT, UH, OUTLOOK, UM, AND SHARED, UH, UH, SEVERAL, UH, CONSIDERATIONS, UH, REGARDING THAT.
UM, UH, FOCUSED ON OUR PEOPLE, OUR PUBLIC SAFETY AND OUR PROJECTS AND INFRASTRUCTURES IS OUR CORE, UH, MISSIONS, UH, UH, FOR THIS BUDGET.
UH, THAT, UH, ALSO INCLUDED, UM, UM, A RECOMMENDATION TO HOLD THE PROPERTY TAX UNCHANGED, UH, INCREASE THE SENIOR TAX EXEMPTION FROM 145,000 160,000.
UH, AND THEN THE COMPENSATION RECOMMENDATIONS, UH, THAT WE, UH, UH, SHARED WITH YOU.
UH, TWO AND A HALF PERCENT MERIT INCREASE, UM, FOR, UM, PUB, UH, SWORN PUBLIC SAFETY ON TEN ONE, THEN ADDITIONAL 2% ON APRIL, UH, ONE OF 2026, UH, STEPS FOR PUBLIC SAFETY.
UM, A TWO AND A HALF PERCENT MERIT, UH, BASED ADJUSTMENT FOR ALL THEIR EMPLOYEES ON, UH, TEN ONE OF, UH, 2025 AND INCREASING, UH, THE MINIMUM STARTING SALARY, UH, FROM 20 TO $21.
UH, IN ADDITION TO THAT, WE WERE VERY EXCITED TO BE ABLE TO TELL YOU THAT WE WERE GONNA HOLD STEADY, UH, FUNDING FOR STREETS, ALLEYS, FACILITIES, UH, FACILITY MAINTENANCE, PARK MAINTENANCE, AND OUR ECONOMIC DEVELOPMENT FUND, WHILE CONTINUING TO, UH, ROBUSTLY FUND OUR EQUIPMENT, UH, UH, OUR PAY AS YOU GO PROGRAMS, OUR CAPITAL NEEDS AND OUR EQUIPMENT REPLACEMENT FUND, AS WELL AS OUR IT, UH, FUND AND, UH, OUR HOME IMPROVEMENT INCENTIVE FUND.
I'D LIKE TO BEGIN BEFORE WE GET INTO, UH, TONIGHT, UH, TONIGHT'S MAIN PURPOSE, JUST KIND OF REVISITING WITH YOU, UH, THE CURRENT RECOMMENDATION AROUND COMPENSATION.
THERE WAS A QUESTION ASKED BY, UM, UH, MAYOR PRO TEM AND THEN OTHERS EXPRESSED AN INTEREST.
AND SO, UH, JUST AS, UH, AS A REMINDER OF THE CURRENT RECOMMENDATION, I JUST SHARED YOU WITH YOU FOR OUR GENERAL PERSONNEL, I DO WANNA DRAW YOUR ATTENTION TO THE CHART ON THE RIGHT HAND SIDE.
UM, I THINK THIS IS AN IMPORTANT POINT AFTER ADDING THAT 2.5%, UM, WE ACTUALLY ARE POSITIONED RATHER WELL, UM, IN, UH, A WIDE RANGE OF, OF OUR, UH, NON-PUBLIC SAFETY NON-SWORN POSITIONS.
NOW, RECALL, THIS IS, UM, ONE OF THE MOST EXCITING THINGS ABOUT WORKING FOR A CITY.
I MEAN, WE'RE A CONGLOMERATE IN MANY RESPECTS, AND SO WHEN WE SAY NON, UH, SWORN PUBLIC SAFETY, WE'RE TALKING ABOUT EVERYTHING FROM, UM, YOU KNOW, DRIVER LOADERS IN OUR SOLID WASTE DEPARTMENT TO GREENS KEEPERS IN OUR GULF DEPARTMENT TO WATER OPERATORS TO, UH, YOU KNOW, PERFORMING ART CENTER, UH, DIRECTORS.
AND SO THIS IS A WIDE AND DEEP, UM, UM, UH, VARIATION ON JOBS.
WHAT, UH, WE DID, UH, UH, UH, LAST NIGHT AS WE BEGAN TO KIND OF FORMULATE THIS IDEA, UM, UM, AROUND TRYING TO MAKE SURE, AND I REALLY WANNA, UH, SHOW APPRECIATION TO THE COUNCIL, UH, FOR THE SENSITIVITY AROUND ON THE NON-SWORN PUBLIC SAFETY, MAKING SURE WE DO NOT FALL, UH, BEHIND.
AND SO WHAT I ASKED JOSE AND MARINO, OUR HR DIRECTOR TO DO, IS TO GO THROUGH AND LOOK AT OUR MOST RECENT MARKET ANALYSIS AND TO IDENTIFY FOR US, UM, THE POSITIONS THAT IF WE ADD THAT TWO POINT A HALF PERCENT THAT YOU SEE THERE STILL WOULD REMAIN OUTTA THAT TOP FOUR.
SO, LOOK AT THE SALARY GROWTH RANGES THAT ARE IN PLACE TODAY.
ADD THE 2.5% AND THEN WHAT'S THE DELTA? WHAT ARE WE STILL, UM, IN A POTENTIALLY COMPROMISED POSITION AND MAYBE, UH, UH, UH, DANGER OF FALLING BEHIND.
UM, JUST AS SOME CONTEXT FOR YOU, A 1%, UH, INCREASE FOR ALL EMPLOYEES ACROSS ALL FUNDS, UM, IS ABOUT A $770,000 IMPACT.
IF YOU LOOK AT JUST THE GENERAL FUND, THAT'S ABOUT A $600,000 IMPACT.
SO IF YOU KIND OF, UM, UH, TAKE THAT ONE STEP, UH, FURTHER, UM, AND IF YOU LOOK AT WHAT THAT WOULD MEAN FOR, UH, FY UH, 26, THE BUDGET WE'RE CURRENTLY CONSIDERING BY ADDING IT AS A FOUR ONE INCREASE, IT WOULD BE ABOUT A 200,
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A $385,000 IMPACT FOR FY 26.BUT RECALL, THE FULL IMPACT OF THAT COMES ONLINE AS WE BEGIN FY 27.
UM, IF YOU LOOK AT THE GENERAL FUND IMPACT, WHICH IS WHAT WE WERE TALKING ABOUT LAST NIGHT, IT'S ONLY, IT'S A $300,000 INCREASE FOR SIX MONTHS OR A, UH, $600,000 FULL IMPACT IN YOUR FY 27, WHICH WOULD BE NEXT YEAR'S PROPOSED BUDGET.
THERE WAS A QUESTION THAT WAS A VERY GOOD QUESTION ASKING, UM, OF THAT INCREMENT THAT WE DESCRIBED TO YOU LAST NIGHT, HOW MUCH OF THAT WOULD BE NEEDED TO BE ABLE TO, UM, FACILITATE, UH, THIS GENERAL FUND, THIS ADDITIONAL 1% ACROSS THE GENERAL FUND? AND YOU SEE THERE, THAT'S THAT 0.00125, AND WE'LL COME BACK TO THAT IN JUST A SECOND.
UM, BASED ON, UH, THIS CONSIDERATION, UM, THE CONSIDERATIONS TO HIT HERE ON THE LEFT AS WELL AS WHAT I BELIEVE WAS THE VERY, AGAIN, APPRECIATED SPIRIT OF WHAT WAS TRYING TO BE SOUGHT AFTER.
I'D LIKE TO, TO MAKE A DIFFERENT, SLIGHTLY DIFFERENT RECOMMENDATION FOR YOU, UH, TO YOU.
UH, THAT I BELIEVE IS, IS, IS, UH, VERY RESPONSIVE.
UH, INSTEAD OF DOING A, UH, UNILATERAL ACROSS THE BOARD, 1% RAISE FOR EVERY NON-SWORN POSITION ON FOUR ONE.
WHAT I'D LIKE TO DO IS TELL YOU, LIKE, WE'D LIKE TO BE A LITTLE BIT MORE, UH, SURGICAL ABOUT THIS.
UM, I BELIEVE FOR ABOUT, UM, ACROSS ALL FUNDS, $120,000, OR IN THE GENERAL FUND $80,000, WE CAN ACTUALLY GO THROUGH AND BASED ON, UH, THE RANKINGS OF BEING POSITION, UM, FIVE OR BELOW, AFTER THE TWO AND A HALF PERCENT IS ADDED TO THE SALARY GROWTH RANGE, UH, FOR THAT ABOUT $80,000 IN THE GENERAL FUND, MOVE THOSE SALARY GROWTH RANGES SO THAT EVERYBODY IS IN THAT FOUR POSITION OR HIGHER.
UM, OR AGAIN, YOU GIVE US A LITTLE GRACE, IT MIGHT BE A 0.2 OR A 0.3, BUT THE BOTTOM LINE IS WE CAN MOVE THAT AND GET US IN A VERY COMPETITIVE WAY.
UM, THE, THE IDEA HERE IS THAT WE, UM, WOULDN'T NECESSARILY BE PROVIDING THAT 1% ACROSS THE BOARD TO POSITIONS THAT MAYBE ARE ALREADY RANKED ONE, TWO, OR THREE, FOR INSTANCE.
AND JUST MAKING THOSE, EVEN IN EVEN A STRONGER POSITION, WE WOULD ACTUALLY RESERVE THOSE DOLLARS AND PUT 'EM WHERE THEY COULD BE, YOU KNOW, MOST UTILIZED, UH, WHICH WOULD BE THROUGH THESE MARKET ADJUSTMENTS.
AND SO, UM, AGAIN, MAYOR PRO TEM TO THE WHOLE COUNCIL, APPRECIATE VERY MUCH THE SUGGESTION AND THE RECOMMENDATION.
I FEEL LIKE AFTER REFLECTING ON THIS THROUGHOUT THE DAY AND LOOKING AT THE DATA, THIS IS RESPONSIVE TO THAT REQUEST.
I THINK IT GETS AT WHAT WE WERE TRYING TO ACHIEVE, UH, IN A LITTLE BIT MORE COST EFFECTIVE WAY.
UM, UM, BUT, UH, ALSO HELPS US BE MINDFUL OF NOT ONLY THE MARKET OR THE EXTERNAL EQUITY CONSIDERATIONS, BUT THE INTERNAL CONSIDERATIONS THAT, UH, THAT ARE IMPORTANT TO US AS WELL.
AND SO, MAYOR, I, I'M GONNA GO AHEAD AND I STOP THERE.
WELL, I'LL TELL YOU WHAT, I APOLOGIZE.
SO YOU MIGHT SAY, WHERE WILL THIS COME FROM? WHERE WILL THE EXTRA $80,000 COME FROM? UM, SO WE ARE ASSUMING A SEVEN, EXCUSE ME.
WE'RE ASSUMING A 7% ATTRITION RATE.
AND WITHIN THAT 7% IS, UM, A ABOUT, UH, 26 FROZEN POSITIONS.
UH, THERE'S A TARGET NUMBER IN THE BUDGET, BOB, I THINK IT'S ABOUT $1.8 MILLION OR SO, RIGHT? UM, IT'S OUR JOB TO MAKE SURE THAT WE HIT THAT NUMBER.
WHAT I'M TELLING YOU IS THAT WHAT WE'RE GONNA DO IS WE'RE GONNA ADD $80,000 IN THE GENERAL FUND TO THAT NUMBER, AND I WILL, UH, MAKE SURE I MANAGE TO THAT NUMBER.
SO IT'S GONNA BE 1 8 8 THAT WE'RE GONNA SAVE AND THAT WE'RE GONNA TARGET FOR SAVINGS FROM THE ATTRITION AND THE FROZEN POSITIONS RATHER THAN THE ONE EIGHT, SO THAT WE CAN MAKE THESE ADJUSTMENTS TO THESE OTHER KEY POSITIONS AND MAKE SURE THAT THEY'RE, UM, POSITIONED STRONGLY IN THE MARKET.
AND SO, MAYOR, UH, I APOLOGIZE.
I WANTED TO JUST MAKE THAT ONE FUNDING, UH, CLARIFICATION, BUT I'LL STOP HERE TO ANSWER ANY QUESTIONS.
UM, PLEASE EXPLAIN FURTHER THIS LAST PIECE ABOUT THE MONEY.
'CAUSE I DIDN'T QUITE CATCH ALL THAT OUT.
THAT WAS REALLY WHAT I WAS STRUGGLING.
ONE, I DO WANNA SAY GREAT JOB ON TRYING TO TAKE THAT SURGICAL APPROACH.
I REALLY THOUGHT THAT WAS CREATIVE, UM, THE WAY YOU WENT ABOUT THAT AND WENT OUR WAY.
I'M NOT LOOKING AT THIS AND HEARING YOU TALK.
I DIDN'T UNDERSTAND OR DIDN'T QUITE CATCH THAT.
SO YOU'RE GETTING 80 FROM THE GENERAL FUND AND THEN 120 TOTAL.
SO, SO YOU HAVE THE 40 TO MAKE UP? NO, SIR.
THE, THE ESTIMATED COST OF MAKING THESE, UH, STRATEGIC MARKET ADJUSTMENTS IS $80,000 IN THE GENERAL FUND.
OVER ALL, OVER ALL THE OTHER FUNDS, IT'S $40,000.
SO I, I CAN ASSURE YOU THAT OKAY, THE OTHER FUNDS ARE, ARE TAKEN CARE OF.
I MEAN THE, THE WATER FUND, THESE ARE, THESE ARE, YOU KNOW, VERY, UM, INCONSEQUENTIAL DOLLARS IN THOSE FUNDS.
THE $80,000 IN THE WATER, I'M SORRY, EXCUSE ME, THE $80,000 IN THE GENERAL FUND.
UH, I WAS KIND OF, UH, ASKING YOU, YOU KNOW, YOU SHOULD BE SAYING, WELL, IF YOU BROUGHT ME A BALANCE BUDGET, WHERE'S THE $80,000 COMING FROM
UH, WE'RE, WE'RE ASSUMING A SAVINGS OF ABOUT $1.8 MILLION FROM A 7% AS, UH, ASSUMPTION AROUND VACANCIES THROUGH ATTRITION AND FROZEN POSITIONS.
WHAT I'M TELLING YOU GUYS, UM, WHAT I'M SUGGESTING IS THAT I WILL MANAGE AND ASSURE A $1.88 MILLION SAVINGS VERSUS A $1.8 MILLION SAVINGS THROUGH THAT STRATEGY.
AND THEREFORE, I CAN STILL COME TO YOU
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AND SAY, EVEN WITH THE MARKET ADJUSTMENTS, IN MY MIND, I'M STILL PRESENTING YOU A BALANCED BUDGET.IT'LL BE MY JOB AND OUR TEAM'S JOB TO MAKE SURE WE HIT THAT GOAL OF THAT WE FIND THAT ADDITIONAL $80,000 IN SAVINGS THROUGH ATTRITION AND THROUGH FROZEN POSITIONS.
AND YOU'LL BE ABLE TO DO THAT WITHOUT CHANGING THE RECOMMENDED TAX RATE FROM LAST NIGHT.
THIS IS, THIS IS PURELY ON MANAGING THE EXPENDITURE, MANAGING EXP EXPENSE.
WELL THAT PUT US IN A AWKWARD POSITION OPERATIONALLY FOR KEEPING ANY OF THOSE POSITIONS FROZEN.
WERE THERE ANY OF THOSE THAT YOU WERE REALLY LOOKING FORWARD TO BRINGING ON ONLINE THAT IS GONNA PUT IT AS A WEIRD POSITION OPERATIONALLY? NO.
I, I, I HONESTLY BELIEVE THAT IT WON'T BE THE FROZEN POSITIONS THAT, UM, THAT WE, UM, REALIZE THIS ADDITIONAL SAVINGS FROM.
AGAIN, RECALL, WE WERE ASSUMING A 7% ATTRITION WHEN IN REALITY, BOB, I THINK WE'RE AVERAGING ABOUT A 10% ATTRITION.
AND SO FOR LACK, IT'S ABOUT A $900,000 DELTA THAT WE WERE BEING CONSERVATIVE.
AND, AND, AND SO THAT'S WHY I'M PRETTY CONFIDENT WE CAN EASILY ACHIEVE THIS ADDITIONAL $80,000 IN SAVINGS TO PAY FOR THE MARKET ADJUSTMENTS THROUGH JUST THAT ONE STRATEGY.
UM, WE WERE, WE WERE BEING EXTREMELY CONSERVATIVE, UM, ASSUMING A 3% LESS VACANCY RATE THAN WE'VE ACTUALLY EXPERIENCED.
UM, AND SO I, THE SAVINGS IS THERE, WE JUST NEED TO MANAGE TO IT.
I, YOU KNOW, AGAIN, JUST THE OPERATIONS, AS LONG AS WE DON'T PUT OURSELF IN A WEIRD POSITION OR, UH, OPERATIONALLY WE CAN CONTINUE TO PROVIDE THAT SERVICE LEVEL THAT, AND OBVIOUSLY THE SUPPORT TO THE STAFF THAT WE ALREADY HAVE.
YOU KNOW, WE DON'T WANNA LEAVE THEM WITH EXTRA WORK 'CAUSE WE DIDN'T FEEL A POSITION FOR THIS, YOU KNOW, UH, 'CAUSE THEN THAT WILL KIND OF COUNTER EFFECT THE, THAT WILL KIND OF COUNTER THE, THE IDEA OF WHAT, UH, GIVING INCREASES DOES AS FAR AS CULTURE.
I I LIKE THE WAY YOU DID THAT.
DON, ARE THERE PROFESSIONAL POSITIONS THAT WE CURRENTLY HAVE COMPETITION FROM IN THE PRIVATE SECTOR FOR, YOU KNOW, OUR CITY STAFF? HMM.
AND YOU KNOW, I GUESS THE QUESTION BEING, ARE WE CURRENTLY LOSING STAFF TO THE PRIVATE SECTOR IN ANY SORT OF MEASURE? NOT MEASURABLE, BUT ANY SORT OF SIGNIFICANT WAY? AND I DON'T WANT TO THINK OF A PROBLEM THAT WE DON'T HAVE, BUT I KNOW THAT WE'RE COMPARING TO OTHER CITIES, BUT I ALSO WANT TO MAKE SURE THAT WE'RE COVERING THE RISK THAT I JUST DESCRIBED AS WELL.
SO, YOU KNOW, UH, THREE YEARS AGO I WOULD'VE SAID ABSOLUTELY MM-HMM
IN OUR ACCOUNTING AND FINANCIAL REALM AS WELL AS OUR ENGINEERING REAL REALM.
UM, KENT, THAT I DON'T SPEAK OUT ATTORNEY HERE.
I THINK WE'RE FULLY STAFF IN THE ACCOUNTING.
UM, WE ARE DOWN, UM, UM, TWO CON, UH, CONSTRUCTION INSPECTORS AND PROJECT OR ENGINEERING, BUT ENGINEERING ENGINEERS MM-HMM
AND SO I THINK THE WORK THAT YOU'VE ALLOWED US TO DO OVER THE LAST COUPLE YEARS HAS REALLY STRENGTHENED THAT POSITION.
UH, COUNCILMAN REALLY OUR BIGGEST, UH, VULNERABILITY RIGHT NOW CONTINUES TO BE THE FRONT LINE.
I MEAN, YOU KNOW, IF YOU THINK BACK TO THE CHART THAT I SHOWED YOU, I MEAN, IN WATER AND WASTEWATER, WE ARE UPWARDS OF, UH, UH, ALMOST 30% VACANCY IN SOME OF THE CATEGORIES.
AND MOST OF THOSE CATEGORIES ARE FRONTLINE TRADES STILL ARE EXTREMELY DIFFICULT TO FIND.
THOSE WOULD BE, UM, IN, IN THIS MARKET, IN THIS MARKET ADJUSTMENT.
I EXPECT THE VAST MAJORITY OF THE MARKET ADJUSTMENTS WILL TAKE PLACE IN THINGS LIKE INSTRUCTION INSPECTORS, BUILDING INSPECTORS, THE TRADES, UH, FLEET, UH, FACILITY TECHNICIANS.
IT'S MORE THE TECHNICIANS, THE PROFESSIONAL, UM, POSITIONS.
I FEEL LIKE WE'VE MADE REALLY GOOD PROGRESS ON, AND WE'RE, WE'RE STAFFED NOW, YOU KNOW, THAT CAN CHANGE, BUT, UM, RIGHT NOW WE'RE STAFFED REALLY WELL ON THOSE.
AND SO I, I, I EXPECT A LOT OF THESE DOLLARS TO GO TO MORE OF THE FRONTLINE TECHNICIAN POSITIONS TO HELP US ATTRACT.
UM, THAT'S WHERE WE'RE HAVING THE MOST DIFFICULTY, UH, NOW I, I THINK, DOES THAT SOUND RIGHT? FAIR, EVERYBODY? YEAH, THAT MAKES SENSE.
YEAH, I, I'M THRILLED, UH, THRILLED WITH THE ADJUSTMENT AND IT GIVES ME A LITTLE BIT LESS ANXIETY ABOUT, YOU KNOW, NEXT YEAR, DEPENDING ON IF WE GOT 2.3 OR I MEAN, 2.5 OR 3.5, DEPENDING ON WHERE THEY FINALLY, UH, LEAVE THE CEILING.
UH, A LITTLE BIT MORE RESTFUL SLEEP.
AND JUST, JUST, UH, AGAIN, JUST ONE FINAL SLIDE HERE ON THIS, JUST TO HELP KIND OF, UH, PAINT THE PICTURE A LITTLE BIT MORE.
THE, THE QUESTION WAS ASKED, WE WANTED TO BE RESPONSIVE, THAT 0.00125 INCREASE THAT IT WOULD TAKE TO, UM, UM, ACHIEVE THAT, IF THAT'S THE WAY WE WERE GONNA GO OR NOT.
SO IT'S GONNA MOVE, BUT THAT WOULD'VE INCREASED ANNUALLY, UH, THE AVERAGE HOMEOWNER'S TAX BILL BY $5.
UM, THE AVERAGE, UH, THE, THE VOTER APPROVAL RATE $12 FOR A COMPARISON.
SO AGAIN, I THINK BOTH OF THOSE ARE MOOT AT THIS POINT.
SO WE'LL GO AHEAD AND MOVE ON.
UM, JUST A LITTLE BIT ABOUT, UH, TODAY, OBVIOUSLY, UM, YOU KNOW, THESE FUNDS ARE QUITE A BIT DIFFERENT THAN THE GENERAL FUND THAT WE DESCRIBED YESTERDAY.
UM, UM, THE, THE GUIDING PRINCIPLES WHEN WE
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LOOK AT OUR UTILITY AND ENTERPRISE FUNDS, UH, ONE IS ONE OF YOUR MAIN GOALS, WHICH IS TO MAKE SURE THAT OUR RATE STRUCTURE STAY COMPETITIVE WITHIN THE MARKET.YOU'RE GONNA SEE, UM, GOSH, UM, ALMOST IN EVERY ONE OF THESE FUNDS TONIGHT EXCEPT GOLF, THAT WE ARE RECOMMENDING, UM, A FEE CHANGE OF ONE TYPE OR ANOTHER.
AND THAT, AGAIN, IS TO, UH, NOT ONLY REMAIN, UH, COMPETITIVE AND ACHIEVE A COST OF SERVICE RECOVERY, UM, THAT IS FAIR AND REASONABLE, UH, IN MOST CASES, IN SOME CASES, IT'S JUST QUITE FRANKLY, PASS THROUGH OF, UH, UH, CHARGES THAT ARE BEING INCREASED, UH, FOR THINGS LIKE WHOLESALE WATER OR, OR SEWER, UH, TREATMENT.
AND SO, UH, ALWAYS A KEY OBJECTIVE THERE.
UM, UM, YOU'RE GONNA HEAR A LOT ABOUT OUR CONTINUED CAPITAL INVESTMENT AND INFRASTRUCTURE AND BUILDINGS.
UM, UH, YOU'LL HEAR SOME ABOUT UNFUNDED UNFUNDED MANDATES, UM, SOME FROM THE EPA THROUGH OUR CMOM, SOME THROUGH THE STATE OF TEXAS, AND THINGS LIKE OUR STORM WATER MANAGEMENT, UH, AND THEN OUR CONTINUED, UM, UH, MASTER PLANNING EFFORTS.
UM, AND, UH, AND AS WE PREPARE TO IMPLEMENT, MANY OF THESE MASTER PLANS ALSO HAVE, UM, IMPLICATIONS FOR, UH, WHAT YOU'LL, YOU'LL SEE TONIGHT.
SO I'M GONNA START OFF WITH A HIGH LEVEL OVERVIEW.
THERE'S SOME KEY POINTS THAT I WANNA MAKE, AND THEN I'M GONNA TURN IT OVER TO BOB, WHO'S GOING TO GO A LITTLE BIT DEEPER, AS HE DID LAST NIGHT.
UM, IN THE WATER AND SEWER FUND, UM, I AM RECOMMENDING A 6%, UH, INCREASE, UH, IN WATER AND SEWER.
UM, RECALL, UH, FROM YOUR NOR TEXAS MUNICIPAL WATER DISTRICT BRIEFING, WE'RE RECEIVING A 4% INCREASE IN THE COAST AND THE COST OF WHOLESALE WATER AND A 15.5% INCREASE IN THE COST OF SEWER TREATMENT.
UM, NOW THOSE COSTS, AS I'LL MENTION IN A SECOND, UH, THOSE COSTS, UM, UH, WE HAVE A KIND OF A TWO YEAR STRATEGY OR TWO YEAR VIEW TO HELP, UH, TAKE THOSE ON, UM, CONTINUED IMPLEMENTATION OF THE NEW EPA REQUIREMENTS.
AGAIN, AS, AS I MENTIONED FOR THIS IS AN UNFUNDED MANDATE ASSOCIATED WITHIN OUR INSPECTING OUR SYSTEM FOR LEAD AND COPPER PIPING RECALL, THAT WAS, I BELIEVE, ABOUT A HALF A THREE YEAR, HALF MILLION DOLLAR, UH, COST EACH OF THOSE YEARS THAT, UH, YOU KNOW, UH, UH, TWO YEARS AGO WASN'T EVEN ON OUR RADAR BECAUSE THIS, THIS NEW, UH, REQUIREMENT FROM THE EPA HAD NOT BEEN HANDED DOWN.
LIKEWISE, UH, WE HAVE CONTINUED FUNDING FOR OUR WATER MASTER PLAN.
WE TALKED ABOUT THE IMPORTANCE OF THAT MODELING, UH, WORK LAST NIGHT, BUT ALSO FOR THE IMPLEMENTATION OF THE CMOM, UH, PROGRAM.
AGAIN, THAT IS A, UH, EPA REQUIREMENT, UH, OF ALL, UH, NORTH TEXAS MUNICIPAL WATER DISTRICT CITIES, AS WELL AS THE DISTRICT NOW.
UH, THE CONTINUATION OF OUR WATER AND WASTEWATER OPERATIONS STRATEGIC PLAN AND BEST PRACTICES ENHANCEMENTS.
UM, THESE WERE COVERED BY ERIC, UH, ROBESON.
UM, UH, I THINK, UH, JUST A WEEK OR SO AGO IN HIS, UH, REPORT TO YOU, UH, THERE WERE, THERE WERE, UH, MENTIONS OF THIS BOTH IN THE WATER AND WASTEWATER DEEP DIVE, AS WELL AS OUR UPDATE REPORT FROM THE BOIL WATER NOTICE.
UM, A BIG, A BIG COMPONENT OF THIS, UM, IS THE NEW SCADA SYSTEM.
IT'S THE TRAINING, ENHANCED TRAINING THAT WE'RE, UM, UH, MANAGING.
UH, IT IS, UM, UH, THE ADDITIONAL STAFF THAT WE'VE BROUGHT ON, UM, TO, UH, BACKSTOP, FOR INSTANCE, OUR, OUR SCADA CENTER, THEN THE DEEP NIGHTS AND ON THE WEEKENDS, INFLATIONARY PRESSURES ON OUR OPERATING EXPENSES AND THE TWO POINT HALF PERCENT, UH, MERIT INCREASE.
UH, AND, AND, AND THIS, AGAIN, WILL BE A, THIS WILL BE A FUND THAT WILL BE IMPACTED NOT SIGNIFICANTLY BECAUSE OF THE SIZE OF THE NUMBER OF EMPLOYEES HERE, BUT THESE ARE SOME OF THE HARDEST TO FILL POSITIONS THAT WE HAVE, UH, IN THE CITY.
UH, THE WATER AND WASTEWATER, UH, FRONTLINE, UH, WORKERS THAT ARE, UH, UH, YOU KNOW, OUR FIRST RESPONDERS WHEN WE HAVE THOSE EMERGENCIES.
UM, I MENTIONED THE TWO YEAR VIEW.
UM, YOU KNOW, AT THE END OF EACH YEAR, UM, UM, WHEN, WHEN WE, UM, HAVE A HIGH PERFORMING REVENUE YEAR, UH, WE'LL OFTEN COME TO YOU IN BOB'S FOURTH QUARTER BUDGET REPORT AND SHARE WITH YOU, UM, SOME, UH, EXCESS REVENUE THAT WE, UM, OFTEN WILL RECOMMEND, UH, THAT WE WILL AUGMENT CAPITAL PROJECTS SO THAT WE CAN SELL LESS DEBT IN THE, UH, INCOME THE COMING YEAR.
WE'VE ACTUALLY DONE THIS QUITE WELL OVER THE LAST COUPLE YEARS, AND IT'S ONE OF THE REASONS WHY SINCE, UH, FY 23, WE HAVE NOT RECOMMENDED ANY SUPPLEMENTAL COS BECAUSE WE'VE BEEN USING THESE YEAR END SAVINGS OR THE ADDITIONAL EXCESS REVENUES AT THE END OF A YEAR, UH, TO, UH, NEGATE THE NEED TO SELL, UH, DEBT FOR CERTAIN PURPOSES.
UM, WHAT WE'D LIKE TO RECOMMEND THIS YEAR, AND IT'S CRITICALLY IMPORTANT, UM, TO BE ABLE TO MANAGE WHAT, UH, NORTH TEXAS PRESENTED TO YOU A FEW WEEKS AGO, WHICH WAS, IF YOU TAKE A TWO YEAR VIEW, A 20% INCREASE IN OUR WHOLESALE WATER RATE AND A 22% INCREASE IN OUR, UH, UH, SEWER, UH, TREATMENT RATE.
THAT'S THE TWO YEAR VIEW WE'RE TRYING TO MANAGE.
SO WHAT WE'D LIKE TO DO HERE IS WHY, LIKE TO, WHATEVER THAT NUMBER ENDS UP BEING IN THE END, UH, WE HAVE AN ESTIMATE WOULDN'T, AND BOB WILL SHARE THAT WITH YOU.
WE'D LIKE TO LET THE, THAT FLOW THROUGH AND HELP TO NEGATE SOME OF THAT PRESSURE THAT WE KNOW WE'RE GONNA SEE NEXT YEAR AND HOPEFULLY MINIMIZE THE, UH, RATE INCREASE NEXT YEAR TO THE EXTENT POSSIBLE.
UH, THIS, UH, YOU MAY THINK TO YOURSELF, AND, AND WE'VE HAD THIS POLICY NOW, UH, FOR SEVERAL YEARS OF REALLY MAKING SURE THAT WE PASS THE FULL, UH, BURDEN OF, UH, THE, UH, COST OF THE INCREASED,
[00:20:01]
UH, COST OF WHOLESALE WATER AND SEWER TREATMENT ON, UM, AND SO THAT WE'RE, WE'RE ABLE TO CONTINUE TO INVEST AND MAKE THE KIND OF IMPROVEMENTS WE NEED IN OUR OWN INFRASTRUCTURE.I DON'T THINK THAT THIS IS A DEVIATION FROM THAT.
I THINK IT'S JUST A TWO YEAR VIEW OF THAT.
UM, WE WILL HAVE TO RECONCILE NEXT YEAR.
UM, MY HOPE IS THAT, UM, THAT THE FUND WILL CONTINUE TO PERFORM AS IT IS EXPECTED TO THIS YEAR.
UM, WE, AND, AND WE MAY HAVE, UH, UH, EVEN MAYBE EVEN PERFORM A LITTLE BIT BETTER, UH, THE, THE MORE, UH, REVENUE WE CAN GENERATE THIS YEAR AND PASS THROUGH TO NEXT YEAR, THE, THE LOWER, POTENTIALLY THE LOWER THE RATE INCREASE, WE HAVE TO FOLLOW UP ON THIS 6%, UH, RETAIL, UH, INCREASE THAT WE'RE PROPOSING FOR YOU.
UH, THERE'S ALSO, UH, $20 MILLION, UM, IN DEBT RECALL.
THAT'S THE BIG PART OF THAT, IS THE RESTART OF, UH, THE CM OM PROGRAM COMING OFF THE A 25 PROJECT, WHICH REALLY NECESSITATED A LOT OF BOTH THE WATER AND THE WASTEWATER DEBT, UM, CAPACITY FOR THE LAST COUPLE YEARS.
WE'RE ABLE TO, UM, RE UM, KINDA RECOMMIT TO THE CMOM PROGRAM AND REALLY TRY TO GET BACK ON TRACK BY, UH, ENHANCING, UM, UM, UM, THE INVESTMENT IN THAT THIS YEAR.
AND THEN THE PAYGO YOU SEE THERE AT 2 MILLION.
AND THEN AGAIN, IMPORTANTLY, STAYING AT THAT 90.99, UM, DAYS OF, UH, FUND BALANCE, UM, THE DRAINAGE FUND, UM, I'M RECOMMENDING TO YOU A $1 PER MONTH INCREASE, UH, TO THE RESIDENTIAL DRAINAGE FEE THAT WOULD TAKE IT TO 6 25 PER MONTH.
UM, AND, UM, YOU SEE THE, THE BREAKOUT THERE, UH, THAT'S FOR THE RESIDENTIAL.
YOU SEE THE BREAKOUT THERE FOR THE COMMERCIAL.
UM, AGAIN, THE DRIVING FACTOR HERE IS REALLY TWO.
ONE IS THE COST OF THE TCQ REQUIREMENTS ASSOCIATED WITH THE STORMWATER MANAGEMENT.
UH, WE THOUGHT ABOUT TAKING YOU THROUGH ALL THOSE AGAIN TODAY, BUT WE KNOW THAT WE BRIEFED THAT, WE BRIEFED YOU ON THOSE SEVERAL TIMES, UH, TWO YEARS IN A ROW.
THIS IS THE FULL IMPLEMENTATION OF THAT.
I MEAN, THIS, NOW WE'RE FULLY BURDENED WITH THAT NEW COMPLIANCE.
THE OTHER DRIVING COST IN THIS, AND I KNOW, UH, WE'VE TALKED ABOUT THIS, UH, IMPORTANTLY IS, UM, WE, UM, HAVE TO START SPENDING MORE ON THE CAPITAL PROJECTS PART OF THE DRAINAGE PROGRAM WORK PLAN.
UM, WE'VE DONE THE STUDIES, UH, WE CAN, WE WE'RE CONCLUDING MANY OF THOSE.
UH, WE HAVE THE SERVICES, UH, LIKE THE STREET, UH, SWEEPING AND THE INLET, UH, UH, BASKETS.
BUT, BUT REALLY THIS, THIS FUND HAS TO START HELPING WITH SOME OF THE CAPITAL PROJECTS.
WE CAN'T, UH, CONTINUE TO JUST WAIT ON, YOU KNOW, A FEW, A FEW MILLION DOLLARS EACH BOND PROGRAM TO TAKE CARE OF OUR DRAINAGE NEEDS.
THAT'S NOT A SUSTAINABLE STRATEGY.
AND, UM, I THINK IT'S FAIR TO SAY THAT, UH, ALMOST ALL, IF NOT ALL, BOB, OF THE NEW DOLLARS THAT ARE ASSOCIATED, UH, WITH THE FEE INCREASE ARE BEING DEDICATED TO THAT, UH, CAPITAL PROJECTS LINE TO REALLY ENHANCE OUR ABILITY, UH, TO, UH, TO DELIVER ON THOSE CAPITAL PROJECTS.
MAYOR, I WANTED TO, UM, JUST MAKE A NOTE HERE AND BE RESPONSIVE.
WE, UH, TOOK THE HOMEWORK THAT YOU HAD SUGGESTED, UH, AND WE, UM, LOOKED AT BOTH THE STATUTE AND THEN GOT PETE TO KIND OF OPINE.
UM, AND WHAT OUR TAKEAWAY IS, UH, AND KENT CAN ELABORATE ON THIS IF YOU HAVE, UH, ANY QUESTIONS.
'CAUSE HE'S KIND OF DID THE LEAD ON THE RESEARCH, IS THAT THE DRAIN, THE, THE DRAINAGE FEE ESSENTIALLY IS, IT NEEDS TO BE AN EQUITABLE AND, AND WHAT THEY CALL A REASONABLE METHODOLOGY.
AND ESSENTIALLY WHAT THAT MEANS IS, UM, THAT WE REALLY WE'RE NOT ALLOWED TO INCREASE, UM, PROPORTIONATELY ALLOWED TO INCREASE THE COST OR THE FEE FROM ONE TYPE OF USER VERSUS ANOTHER TYPE OF USER.
AND SO, AND AGAIN, I, I THINK, UM, THAT'S DIRECTLY AT A STATE STATUTE, UM, THAT, UH, THAT WE HAD PETE CONFIRMED.
SO, UM, WANTED TO JUST KIND OF REPORT BACK THAT AND, AND WHY WE'RE KIND OF A, APPROACHING THE RECOMMENDATION THE WAY THAT WE ARE, UH, YES.
SO WHAT DID I MISS ON MAYOR? YOUR RECOMMENDATION? 'CAUSE I FEEL LIKE HE JUST REFERENCED SOMETHING THAT I DON'T REMEMBER.
YEAH, I THINK, I THINK I HAD TWO DIFFERENT THOUGHTS BACK THEN.
ONE WAS, UH, AS I RECALL, UH, DETERMINING WHETHER OR NOT THERE WAS A WAY FOR US TO BE APPROACHING THE COMMERCIAL CUSTOMER DIFFERENTLY THAN OUR RESIDENTIAL CUSTOMER, SO THAT THEY COULD PERHAPS TAKE ON MORE OF THE BURDEN, UH, OF, OF, OF THE COST, UH, INCREASES THAT WE WERE SEEING.
AND IF I SAID, RECOMME, LET ME, IF I SAID RECOMMENDATION, THAT'S A MISTAKE.
IT WAS A QUESTION THAT THE MAYOR ANSWERED.
I ASKED, AND WE WERE JUST PROBABLY MAY HAVE USED THE WRONG TERM.
THE, THE OTHER QUESTION THAT I DID HAVE THAT I'M CURIOUS, UH, AND, AND MAYBE IT WAS NOTED OR MAYBE NOT, BUT THE IDEA OF DOING TIERED RATES FOR WATER MM-HMM
UM, IS THAT, WHERE ARE WE IN, IN TERMS OF THAT THOUGHT? YEAH, NO, GREAT.
SO, UH, WE, WE DID SOME, UH, SO, SO THE, JUST FOR EVERYBODY'S CONTEXT, THE QUESTION WAS, UH, WE HAVE A TIERED RATE SYSTEM CURRENTLY, SO THE MORE WATER YOU, AS YOU USE AS YOU, YOU ECLIPSE DIFFERENT LEVELS, YOU PAY MORE.
UM, I THINK VERY, VERY INTERESTING QUESTION IN TERMS OF, KIND OF A SIMILAR QUESTION IN TERMS OF, UM, COULD THE INCREASE BE A HIGHER INCREASE, UM, THE HIGHER THE LEVEL OF WATER TO BE USED.
UM, WE TRIED TO DO SOME INITIAL MODELING AND, UM, IT ACTUALLY IS A MUCH MORE COMPLICATED MATH PROBLEM THAN I ANTICIPATED
UM, AND SO WHAT WE'D LIKE TO RECOMMEND, UM, IS TWO THINGS.
[00:25:01]
WE HAVE A, A, A A, A FIRM THAT WE'VE USED.UH, THEY'VE, THEY'VE HELPED US WITH A LOT OF OUR RATE, OUR RATE CONSIDERATIONS.
UH, WE FEEL LIKE THEY WOULD BE AS, UH, WILL DAN IS THE COMPANY.
THEY'VE, THEY'VE BEEN BEFORE COUNCIL PREVIOUSLY.
UM, WE FEEL LIKE THEY, THEY HAVE A GOOD UNDERSTANDING OF OUR RATE SYSTEM AND OUR USAGE PATTERNS, AND SO THEY'D BE GOOD TO HELP US WITH THIS.
BUT THE OTHER THING IS WE REALLY WANNA STUDY A LITTLE BIT MORE, UM, THE, THE HIGH USER GROUP, FOR INSTANCE.
UM, SO WITHIN THAT GROUP, YOU'RE GONNA HAVE SOME VERY LARGE COMMERCIAL USERS FOR SURE.
UM, YOU WHAT ALSO HAVE, UM, SOME LARGE MULTIFAMILY, UM, WHICH KIND OF GETS AT THE RES, YOU KNOW, IT'S, IT'S A COMMERCIAL USE.
BUT IT'S GONNA BE A MULTI-FAMILY IMPACT.
THE OTHER THING THAT WE, UH, QUICKLY REALIZED IS THE INSTITUTIONAL PARTNERS LIKE UT DALLAS, WHICH A BIG PART OF THEIR WATER USAGE IS ALSO RESIDENTIAL.
AND SO MAYOR, WHAT WE'D LIKE TO DO IS WE'D LIKE TO, UM, YOU KNOW, THIS COULD BE A TACTIC, IT COULD BE A HOMEWORK, UH, COMING OUT OF THIS.
I DON'T THINK WE'LL HAVE A GOOD CLEAR ANSWER ON NOT ONLY THE METHODOLOGY THAT WE COULD RECOMMEND, BUT THE, UM, THE IMPACTS TO THE DIFFERENT USER GROUPS, PERHAPS IN TIME FOR THIS BUDGET.
AND, AND, UH, WE'LL, WE'LL COME BACK FOR, UH, FOR, FOR A, UH, YOU KNOW, AT A FUTURE TIME AND, AND, AND PROVIDE THAT BRIEFING SO THAT WE CAN HAVE THAT CONTEXT MOVING FORWARD.
AND, AND FOR WHAT IT'S WORTH, JUST, JUST TO COMPLETE THE THOUGHT, UH, FOR WHAT IT'S WORTH ON THAT, UH, YOU KNOW, MY ULTIMATE INTENT IS TO CREATE A SCENARIO WHERE THERE'S A USER GROUP THAT WON'T BE AS IMPACTED PERCENTAGE WISE IN THESE, IN THESE UNIVERSES.
AND PERHAPS ANOTHER MORE SIMPLE, BUT I DON'T KNOW, UH, UH, PROCESS WOULD BE WHETHER OR NOT IT'S AN EXTENSION OF WHAT WE'RE DOING RIGHT NOW FOR OUR SENIOR TAX, UH, UH, OUR EXEMPTION THAT WE HAVE TODAY FOR THE SENIOR TAX.
BUT IF THERE COULD BE A SENIOR WATER RATE, PERHAPS, I DON'T KNOW, IT'S JUST ONE WAY OR THE OTHER.
THE THOUGHT PROCESS IS THOSE THAT ARE MOST ON FIXED INCOMES HAVE THAT ABILITY TO MAYBE BE A LITTLE BIT MORE RESILIENT TO WHAT'S GOING ON AROUND THEM, THAT'S OUT OF THEIR CONTROL.
WELL, I STILL HAD ONE QUESTION TO DON SIMILAR TO WHAT YOU JUST ASKED, BUT I WANNA PIGGYBACK OFF OF WHAT YOUR CONVERSATION JUST HAPPENED ABOUT MAYBE A TIERED SYSTEM OF CHARGING, WHILE I'M ASSUMING, AND CORRECT ME IF I'M WRONG, MAYOR, LIKE IF SOMEBODY WHO USES A HIGHER VOLUME, PERHAPS CHARGING THEM A HIGHER RATE, AND IT'S KIND OF A CONSERVATION TYPE APPROACH TO, BUT, BUT THAT KIND OF, WE ALSO DO KIND OF THE OPPOSITE WHEN IT COMES TO COMMERCIAL BECAUSE WE PROVIDE VOLUME DISCOUNTS AND OTHER, YOU KNOW, UM, SO, SO IF WE DID THAT ON THE RESIDENTIAL SIDE, THAT'S KIND OF THE FLIP OF WHAT WE DO ON A, ON A RESIDENTIAL SIDE.
COUNCIL, WE, WE DO HAVE A CONSERVATION RATE STRUCTURE RIGHT, UH, IN PLACE TODAY FOR BOTH COMMERCIAL AND RESIDENTIAL.
UM, I'M ON, YOU KNOW, RE REGARDING THE, THE LATTER COMMENT.
I'M ONLY AWARE OF ONE SCENARIO.
SO IS THAT ONLY IT'S, THAT'S THE ONLY SCENARIO.
UH, THANK YOU FOR CLARIFYING THAT.
NOW, SIMILAR TO WHAT YOU WERE ASKING ABOUT THE SENIORS, OBVIOUSLY I KNOW WE'VE HAD ON OUR ONE-OFFS, THIS IS SOMETHING THAT THIS COUNCIL AND PREVIOUS COUNCIL HAVE LOOKED AT INCREASING THESE, THE WATER RATES AND IT'S NEEDED, UNFORTUNATELY, UM, IT IS ABSOLUTELY NEEDED.
UM, MOST OF US AROUND THIS HORSESHOE AREN'T GONNA HAVE A PROBLEM WITH THAT PERSONALLY, BUT, YOU KNOW, I THINK OF SENIORS, OBVIOUSLY THAT'S A CONCERN.
UH, I KNOW, I DON'T KNOW, A MONTH OR TWO AGO, I HAD RECEIVED AN EMAIL FROM A RESIDENT WHO, UH, WAS A, UM, I BELIEVE IT WAS A DISABLED VET.
AND I KNOW SOME OF THE CITIES, UM, THROUGHOUT NORTH TECH, THROUGHOUT TEXAS, THERE'S A FEW OTHER CITIES THAT HAVE PASSED EITHER A DISCOUNT OR SOME KIND OF PROGRAMS, UH, THAT SPECIFICALLY HELPED DISABLED VETS.
AND I THINK I'D FORWARD THAT MM-HMM
AND WE SAID WE WOULD LOOK AT IT AT SOME POINT, SO MM-HMM
UM, IF MAYBE WE CAN KIND OF LOOK AT THAT, UH, SPEND A LITTLE BIT OR, I DON'T KNOW IF WE HAVE, AND, BUT I'M GONNA ASSUME THAT WE DON'T HAVE THAT INFORMATION WITH US AT THIS VERY SECOND, BUT IF WE CAN MAYBE CONSIDER STUFF LIKE THAT.
AND IF IT'S NOT IN WATER, 'CAUSE THAT'S NOT THE SPACE, MAYBE IT'S, UH, UM, IN REC FEES OR SOMETHING MM-HMM
UM, LIKE, AND THIS, THIS RESIDENT WAS JUST CONCERNED SURE.
SPECIFICALLY THAT
THIS WAS ON RIGHT UTILITY THERE.
THERE ARE CITIES, UH, AROUND, AROUND THIS.
THERE ARE CITIES AROUND THE STATE THAT ARE STARTING TO UTILITY BREAKS ON SOME OF THE FEES ASSOCIATED WITH UTILITIES OR AROUND B REC CENTERS.
UM, SO AGAIN, NOT SOMETHING I EXPECT YOU HAVING AN ANSWER TO.
JUST SOMETHING THROWN OUT THERE.
MAYBE WE CAN HAVE A DISCUSSION.
WE'LL, WE'LL DO SOME ADDITIONAL RESEARCH AND, UH, MAYBE, UH, ON THE, ON THE, UH, 18TH, MAYBE BE ABLE TO KIND OF, YEAH, I MEAN, ANY LITTLE, ANY, ANY LITTLE BREAK WE CAN OFFER, ESPECIALLY TO OUR SENIORS WHO ARE ON FIXED INCOMES, UM, YOU KNOW, THAT'S SOMETHING THAT I KNOW WHEN I RAN
[00:30:01]
AND KNOCKED ON SO MANY DOORS, THAT'S SOMETHING I WILL FOREVER STICK WITH ME UNTIL THE DAY I DIE, IS SOME OF THOSE CONVERSATIONS WITH OUR SENIORS.AND, UM, WE, WE HAVE SENIORS ARE REALLY STRUGGLING.
SO A DOLLAR A MONTH, $5 A MONTH MAKES A HUGE DIFFERENCE FOR THAT POPULATION.
UH, OUR SOLID WASTE, UH, SERVICES FUND, UM, UM, AT AND, AND THIS POINT I'M RECOMMENDING A 50 CENT, UH, PER MONTH, UH, PLUS TAX, UH, RATE INCREASE FOR RESIDENTIAL.
UM, WE HAVE, UM, SEVERAL MARKET BASED INCREASES, UH, UH, PROGRAMMED IN FOR COMMERCIAL.
UH, THESE ARE THINGS THAT, UH, THESE ARE RATES THAT WE LOOK AT, UH, EACH YEAR.
UM, AND WE ADJUST, UM, UM, TO BE NOT ONLY, UH, COMPETITIVE IN THE MARKET, UH, BUT ALSO, UM, UM, TO MAKE SURE THAT, UH, WE'RE RECOVERING COSTS, UM, APPROPRIATELY ON THE, ON THE COMMERCIAL SIDE.
UM, IN THIS, UH, IN THIS FUND AS WELL IS, UH, FUNDING THAT WILL ALLOW US TO CONTINUE, UH, IMPLEMENTING, UH, GRANTED IT'S THE EARLY STAGES, BUT IMPLEMENTING, UH, THE SOLID WASTE MASTER PLAN, UH, THAT'S ONE OF THE MASTER PLANS.
I KNOW ONE OF YOUR TACTICS IS GOING TO BE TO KIND OF COMPARE AND CONTRAST ALL OF THE ACTION ITEMS OUT OF THE DIFFERENT PLANS.
THIS IS ISOLATED TO THE SOLID WASTE MA TO THE SOLID WASTE FUND.
AND SO IN ESSENCE, UM, YOU KNOW, WITHOUT ANY, UM, COMMITMENT, UH, IN, IN FUNDING FROM, FROM, UH, TO THE PLAN IN, IN THIS PARTICULAR FUND, UM, IT'S NOT GONNA PROGRESS.
AND SO WE DO HAVE A MODEST AMOUNT OF DOLLARS, UH, HERE.
UH, PART OF THAT IS BRINGING ON A MANAGEMENT ANALYST, UM, UM, IN, IN, UH, SOLID WASTE LIKE WE DID IN, IN THE WATER DEPARTMENT AS PART OF THE PRIOR ENHANCEMENTS I MENTIONED.
UH, OUR GOAL HERE IS, I MEAN, THAT, YOU KNOW, JUST KIND OF, IF I CAN LAMAN EYES, THIS, ESSENTIALLY WHAT WE'RE DOING IS WE'RE TAKING, UM, AS, UM, YOUNG PROFESSIONALS WITH, UH, MASTERS IN PUBLIC ADMINISTRATION, AND WE'RE PUTTING THEM IN TECHNICAL AREAS, AND WE REALLY WANNA START, UH, BEING ABLE TO COLLECT BETTER DATA, UM, UTILIZE DATA TO, UH, TO HELP US BECOME MORE EFFICIENT, TO MAKE BETTER DECISIONS ON OPERATIONS, UH, TO HELP US, UM, GET MORE, UH, TIME OUT OF OUR ASSETS.
UM, I REALLY THINK THAT, UH, THIS IS, UM, I'M GONNA ADD GREAT VALUE.
UH, WE HAVE, UH, TO, TO BOTH OF THESE AREAS, UH, YOU KNOW, THESE, UH, FOLKS THAT, AND AND LEADERS IN THESE AREAS TEND TO COME UP THROUGH THESE AREAS.
AND SO WHILE THEY'RE VERY TECHNICALLY PROFICIENT, UM, SOMETIMES THEY HAVEN'T BEEN EXPOSED TO SOME OF THE OTHER, UH, DISCIPLINES THAT WOULD ALLOW, UH, FOR SOME OF THESE EFFICIENCIES AND SOME OF THESE, UM, SOME OF THESE OTHER OPPORTUNITIES TO BE, UH, YOU KNOW, IDENTIFIED AND SEIZED.
AND SO, UH, VERY, VERY ANXIOUS, UM, TO SEE THIS FIRST STEP IN THE MASTER PLAN, UH, COME TO FRUITION AND, UH, START TO HOPEFULLY SEE SOME OF THE BENEFITS OF THAT.
UH, WE MENTIONED PREVIOUSLY, UH, THAT, THAT THE, UH, MERIT INCREASES THE SAME CASE HERE.
UH, THIS FUND CAN EASILY, UH, MANAGE THOSE.
AND THEN THE $2.2 MILLION, UH, IN, UM, UH, SHORT TERM COS, UH, AS WELL AS MAINTAINING THE 90.99 DAYS IN THE FUND BALANCE, UH, THE GULF FUND IS PRETTY STRAIGHTFORWARD THIS YEAR.
RECALL LAST YEAR WE DID EXTENSIVE, UH, FEE INCREASES IN THE GOLF FUND IS INCLUDING, UM, YOU KNOW, ELIMINATING, UM, UM, THE, THE, UH, PUNCH CARD.
UM, BOTH COURSES, UH, ARE FULLY ACTIVATED AND IN INCLUDED IN BOTH THE, UH, REVENUE AND EXPENDITURE SIDE.
UH, WHICH BY THE WAY, COURSE TWO IS JUST DOING EXCEPTIONAL.
UM, UH, INCLUDES ALL OF THE, UH, TRADITIONAL MAINTENANCE AND, AND, UM, UH, REPLACEMENT ITEMS THAT, UH, WE, WE TRADITIONALLY HAVE, UH, MAINTAINS THE 60.99 DAY FUND BALANCE.
AND THEN FINALLY, THE HOTEL MOTEL TAX, UH, FUND, UM, OCCUPANCIES IN OUR, IN OUR HOTELS, UM, UM, ARE PROJECTED TO DECREASE, UH, 4.4% COMPARED TO FY 25.
UM, YOU KNOW, IN FY 25, WE TALKED ABOUT, UH, TWO SIGNIFICANT RENOVATIONS THAT HAD OCCURRED.
UM, YOU KNOW, UM, THOSE, UH, THOSE ARE NOT THE CAUSE OF THIS.
WE ARE, UH, STUDYING AND TRYING TO IDENTIFY, UH, TO THE BEST OF OUR ABILITIES, UTILIZING THE, UM, UM, UM, HOTEL MANAGERS, THE MOTEL MANAGERS, TRYING TO UNDERSTAND WHAT IS GOING ON WITH THEIR, UM, WITH THEIR, UM, OCCUPANCY LEVELS.
IT APPEARS TO BE MORE ON THE HOSPITALITY SIDE THAN ON THE BUSINESS SIDE, UM, IS WHAT, WHAT OUR INITIAL, UH, TAKE IS.
AND SO, UM, WE, WE HAVE TO CONTINUE TO HAVE THAT ENGAGEMENT AND, AND UNDERSTAND AND THEN TRY TO WORK WITH OUR, OUR, UH, HOTELS TO, UH, REVERSE COURSE.
UM, ON THIS PARTICULAR, UM, ON THIS PARTICULAR REVENUE SOURCE.
UH, EISMAN CENTER REVENUES, UM, ARE ANTICIPATED, UH, TO BE DOWN, UH, QUITE SUBSTANTIALLY.
UM, I THINK, UH, ABOUT ABOUT FIVE, ALMOST $600,000, RIGHT? MM-HMM
UM, NOW I WANNA MAKE JUST PAUSE HERE AND, AND MAKE, UM, REAL, REAL CLEAR THAT THERE'S NOT SOMETHING TO MISS AT THE EISMAN.
UH, THIS WAS A BYPRODUCT OF COMPARING, UH, FY 25, WHICH, UM, I THINK FOR ALL THE RIGHT REASONS AND INTENTIONS, UH, WAS AN OVERLY, UM, AMBITIOUS OR MAYBE OVERLY OPTIMISTIC REVENUE, UM, UH, PROJECTION.
WE, UH, QUICKLY ACKNOWLEDGED THAT PROBABLY THE FIRST INTO THE FIRST QUARTER OF FY 25, WE PIVOTED AND ADJUSTED THE EXPENDITURE,
[00:35:01]
UM, UM, UH, UM, AMOUNTS SO THAT IT WOULD BALANCE OFF ON THE, UH, REVENUE PROJECTIONS.AND SO, UH, WHAT YOU SEE HERE, I THINK IS A SOLID REVENUE PROJECTION FOR FY 26.
IT'S JUST BEING COMPARED TO, YOU KNOW, PROBABLY, LIKE I SAID, MAYBE A LITTLE BIT OF AN OVERLY OPTIMISTIC REVENUE PROJECTION FOR FY 25.
UM, ON THE SAME, UH, POINT, UM, THE EISMAN CENTER PRESENT REVENUE EISMAN CENTER PRESENTS REVENUE IS, UH, PROJECTED TO BE REDUCED BY ABOUT $500,000.
UM, AGAIN, NOTHING AMISS IN THIS REGARD.
I WILL RE REMIND YOU BACK TO THE BRIEFING THAT ALLIE DID IN EARLY MAY.
UM, WE, UM, I THINK RIGHT SIZED THE EISMAN CENTER PRESENTS SERIES, AND WE ESSENTIALLY, UM, REDUCED THE PROGRAMMING AND THE FUNDING FOR THE PROGRAMMING BY ABOUT A THIRD.
UM, AND, UH, I THINK ALLY WAS, UH, VERY, UH, ON BOARD WITH THIS.
SHE FELT IT WAS HIGHLY ALIGNED WITH WHERE, UH, SHE THOUGHT WE NEEDED TO TO GO.
AS WE CONTINUE TO RECALIBRATE AND KIND OF REFINE, UH, THE EISMAN CENTER PRESENTS UNDER HER LEADERSHIP AGAIN HERE.
UM, WHILE THERE'S A THIRD REDUCTION IN THE, UM, UH, REVENUE PROJECTIONS, THERE IS A, UM, UH, EQUIVALENT REDUCTION, UH, NOT DOLLAR FOR DOLLAR, BUT AN EQUIVALENT REDUCTION IN THE EXPENDITURES, UH, ASSOCIATED AS WELL.
SO IF WE'RE DOING A THIRD LESS SHOWS, WE'RE PAYING A THIRD LESS PERFORMERS, WE'RE PAYING A THIRD LESS, UH, YOU KNOW, LIGHTS AND CAMERAS AND ALL THAT KIND OF STUFF, UM, SOME OF THE COSTS STILL REMAIN BECAUSE THE BUILDING HAS TO STILL BE AIR CONDITIONED, THAT KIND OF THING.
SO AGAIN, IT'S NOT A DOLLAR FOR A DOLLAR, BUT I WANT TO JUST TAKE A SECOND AND REALLY POINT OUT THOSE TWO THINGS BECAUSE THEY, UH, APPEAR AS BIG PERCENTS AND THEY APPEAR AS BIG LOSSES, UM, IN TERMS OF, UH, REVENUE.
BUT IN REALITY, WHEN YOU KIND OF THINK A LITTLE BIT MORE, UH, UH, DEEPLY ABOUT 'EM, THEY'RE, THEY'RE REALLY NOT, UM, THE EISMAN CENTER, UH, FACILITY MAINTENANCE FEE, I'M RECOMMENDING A DOLLAR INCREASE, UH, TO THAT FEE.
I RECALL THAT FEE WAS STARTED, I THINK ABOUT A DOZEN YEARS OR SO AGO, BUT YEAH, BACK IN FY UH, 1213.
AND, YOU KNOW, ITS PRIMARY GOAL IS, UH, TO HELP ADDRESS THE EQUIPMENT AND FACILITY, UH, MAINTENANCE NEEDS OF THE EISMAN CENTER.
IF YOU WALK IN THE EISMAN CENTER, YOU WOULD NEVER GUESS IT WAS 22 YEARS OLD.
AND THAT'S BECAUSE, UM, THE CITY HAS COMMITTED, UM, AND A LOT OF THE, THAT COMMITMENT HAS NOT BEEN THROUGH HOTEL MOTEL DOLLARS.
THE CITY IS COMMITTED TO KEEPING THAT BUILDING IN AN EXCEPTIONAL, UH, SHAPE, AND IT ISN'T AN EXCEPTIONAL SHAPE.
I'M RECOMMENDING THIS DOLLAR INCREASE, UM, UM, BECAUSE EVERY SINGLE ASPECT OF KEEPING IT IN THAT ACCEPTING IN THAT EXCEPTIONAL SHAPE COSTS MORE TODAY THAN IT DID THE LAST TIME THIS FEE WAS INCREASED, WHICH AT THAT TIME, IT WAS ONLY INCREASED ABOUT 50%.
AND I THINK, BOB, THAT WAS BACK, UH, YEAH, ALMOST, UH, ALMOST EIGHT YEARS AGO IS THE LAST TIME WE INCREASED THIS.
AND SO, UM, WE FEEL, UH, MUCH LIKE A LOT OF OUR OTHER, UH, AREAS OF, UM, OF, YOU KNOW, AROUND FEE CONSIDERATIONS, UH, IT'S, IT'S MUCH, UH, IT'S A MUCH BE MUCH BETTER STRATEGY TO REVIEW THIS ON AN ANNUAL BASIS.
AND IF WE HAVE TO INCREMENTALLY INCREASE IT, DO SO, SO WE CAN KEEP THAT REINVESTMENT LEVEL THE SAME AT THE EISMAN THAN IT IS TO, YOU KNOW, MAYBE LET IT GO THIS LONG AGAIN.
AND SO THIS WILL BE PART OF OUR REGULAR, UM, KIND OF EVALUATION ESSENTIALLY.
UM, JUST TWO MORE QUICK BULLETS, AND I'LL STOP IN ANSWERING QUESTIONS ON THIS, UH, SLIDE HERE.
UM, WE'RE PLEASED THAT WE'RE ABLE TO KEEP THE ARTS GRANTS AT $375,000.
UM, WE ARE ALSO, UH, THE, UM, UH, HOTEL MOTEL FUND IS ALSO GONNA CONTINUE TO HELP SUPPORT THE WILDFLOWER FESTIVAL THROUGH, UM, UH, HELPING SUPPORT, UH, FUNDING AND PROVIDE FUNDING FOR THE ENTERTAINERS, JUST THE ENTERTAINERS.
AND THEN OF COURSE, THERE'S THE, THE MERIT, UH, INCREASE INCLUDED IN THIS AS WELL.
SO LET ME PAUSE BEFORE I THINK I HAND IT OVER TO BOB NEXT AND, UH, ANSWER ANY QUESTIONS, QUESTIONS THAT YOU GUYS MIGHT HAVE.
I'M CURIOUS ON THE OCCUPANCY, UM, CONCERNS FOR THIS YEAR.
IS THERE ANYTHING THAT OUR CPB IS DOING WITH RESPECT TO FIFA AND TRYING TO ATTRACT, YOU KNOW, RESIDENCY FOR THOSE NINE GAMES OR ANYTHING LIKE THAT? I MEAN, I, I REALIZE WE'RE NOT NEXT DOOR TO ARLINGTON, BUT, YOU KNOW, GIVEN TRANSIT AND THOSE SORTS OF THINGS.
YEAH, YOU KNOW, THERE A LOT IS HAPPENING IN DALLAS AND, YOU KNOW, SOME OTHER PARTNER CITIES WHERE WE MIGHT ACTUALLY BE IN A SWEET SPOT TO BE ABLE TO BENEFIT FROM THAT.
UH, WE HAVE SEVERAL DEPARTMENTS THAT ARE VERY INVOLVED IN THE REGIONAL, UM, EFFORTS, UH, YOU KNOW, TO, TO MAKE SURE NORTH TEXAS IS A GOOD HOST FOR, FOR FIFA.
BOB, UM, I'M GONNA JUST, UH, LOOK AT YOU TO CONFIRM THIS.
I DON'T THINK WE WANTED TO, UH, INCLUDE IT.
WE, WE, WE, SO, SO COUNCILWOMAN, YOU'RE ABSOLUTELY RIGHT.
THAT COULD BE, UM, THAT COULD BE A, A VERY NEEDED BOON.
WE DON'T WANNA INCLUDE IT EXACTLY.
WE, WE DIDN'T WANNA ASSUME IT AND WE DIDN'T WANNA COUNT ON IT.
UM, AND SO WHILE, WHILE WE ANTICIPATE IT, WE JUST DIDN'T WANT TO BOOK IT.
AND, UM, BUT, BUT, UH, VERY MUCH BELIEVE THAT, THAT THAT WILL HAVE AN IMPACT.
I, I THINK WHAT WE'RE HEARING IS THAT, YOU KNOW, EVEN THOUGH WE'RE NOT CLOSE TO A PRACTICE FACILITY THAT WE KNOW OF, AND THAT WE WILL STILL BENEFIT, UH, FROM, IT'S JUST GONNA BE THAT MANY PEOPLE THAT COME TO HERE, NORTH, NORTH TEXAS.
THANK YOU FOR, FOR SAYING THAT YOU'RE ON TOP OF IT, BUT DIDN'T WANNA BUDGET IT IN CASE.
YEAH, THAT'S SPECIFICALLY WHAT I, WHAT I WAS GONNA ASK, BUT SO WE'RE NOT, WE HAVEN'T SPECIFICALLY
[00:40:01]
DONE ANYTHING FOR HOTELS TO, TO BRING IN EXTRA OR TO MAKE SURE, 'CAUSE I THINK SMU IS A PRACTICE FACILITY, ALLEN, BRI, CRISCO, IT SEEMS UP AND DOWN 75, WE'RE KIND OF IN THE MIDDLE OF SEVERAL DIFFERENT LOCATIONS, AND I THOUGHT WE'D BE A LITTLE BIT MORE AGGRESSIVE ON THAT.WELL, BUT LET, LET ME, SO, SO I'M NOT, I'M NOT, I'M NOT SURE THAT THE PRACTICE FACILITIES HAVE BEEN CONFIRMED.
AND NOW I COULD BE WRONG, BUT I, THAT'S NOT MY UNDERSTANDING THAT THEY HAVE BEEN CONFIRMED.
R-S-M-U-I, I HEARD FRISCO, UH, IS, IS LIKELY ONE.
BUT, UM, I WOULDN'T SAY THAT WE'RE NOT DOING ANYTHING.
UM, WE, I, WE ARE, WE'RE PARTICIPATING REGIONALLY.
WE'RE MAKING SURE THAT AS, UM, ALL OF THE DIFFERENT CITIES IN NORTH TEXAS HAVE THE ABILITY TO MARKET, UM, TO VISITORS FROM ALL AROUND THE WORLD, THAT WE WILL HAVE THAT OPPORTUNITY AS WELL.
SO I THINK OUR CBB IS VERY ACTIVE, UM, AT THIS POINT.
AND THEY'RE DOING EVERYTHING THAT THEY, THAT THEY SHOULD BE DOING TO MAKE SURE THAT WHEN, UM, YOU KNOW, ESSENTIALLY A YEAR FROM NOW WHEN THE GUESTS START TO ARRIVE TO NORTH TEXAS, WE'LL BE POISED TO BENEFIT FROM THAT AS WELL.
WE, WE HAVE TEAMS. I THINK THEY'RE MOVING IN OF NOVEMBER, IS WHAT I THINK MONICA SAID LAST WAS NOVEMBER.
WE START TO HAVE PEOPLE START MOVING IN, UH, YOU KNOW, RICHARDSON BEING RIGHT IN THE MIDDLE WITH THE AMOUNT OF FOOD WE HAVE.
I THINK THERE'S A GREAT OPPORTUNITY CAPTURE SOME REVENUE FOR NEXT YEAR TO HELP OFFSET SOME OF THAT.
SO, SO TO BE CLEAR, WE JUST HAVEN'T BUDGETED A BIG WINDFALL.
BUT, BUT WE'RE OBVIOUSLY WORKING ON TRYING TO, OKAY.
I JUST WANTED TO YEAH, CLARIFY FOR ANYONE WHO'S, WHO'S
I THINK IT'S JUST OUR, IT'S OUR CONSERVATIVE NATURE.
UH, YOU KNOW, AND, AND I WAS JUST WANT TO ADD TO THAT, UH, DECREASE THE 4.4%.
DID WE HAVE A, UH, SORT OF STAY THE SAME, OR DID WE HAVE AN INCREASE OR DECREASE DURING WILDFLOWER AND COTTONWOOD BECAUSE, YOU KNOW, PEOPLE, PEOPLE THAT ARE NOT JUST LOCAL, THAT ARE COMING IN FOR THAT EVENT.
DID WE HAVE, UH, COMPARED TO LAST YEAR AND THIS YEAR, WAS IT PRETTY MUCH THE SAME OR, OR INCREASE? I MEAN, I, I HAVEN, EXCUSE ME, I HAVEN'T SEEN THE MOST RECENT HOTEL OCCUPANCY RATES FOR THAT, BUT THAT TRADITIONALLY IS A MONTH WHERE WE DO SEE, YOU KNOW, A KIND OF A, AN UPTICK IN ACTIVITY.
UH, I, I HAVE NOT SEEN THE MOST RECENT REPORT.
WE CAN, UH, DOUBLE CHECK WITH, UH, CBB ON THAT, WELL, CBB AND ACCOUNTING WHEN, WHEN WE GET THAT REPORT.
BUT IT SHOULD BE IN OUR, UM, REPORT FOR THE END OF JULY OR JUNE, WHICH WE SHOULD BE GETTING SOMETIME THIS MONTH.
YEAH, IT SEEMS LIKE THAT WOULD BE ONE OF OUR MAIN INCOME STREAMS, UH, DURING THAT TIME PERIOD.
I MEAN, AMONG ALL THE CORPORATIONS AND OTHER ACTIVITIES, BUT, YOU KNOW, WE ARE CENTRALIZED AND THERE'S NOT A DESTINATION TO COME HERE AND DO ANYTHING SPECIFIC.
WE HAVE TO RELY ON BOTH SIDES, YOU KNOW, THE PLAINTIFFS SIDE AND THE DALLAS SIDE TO, TO HELP INCREASE THAT.
BUT I, I'M, I'M, I'M HAPPY, I'M HAPPY TO SEE THAT WE DON'T HAVE TO DEVIATE FROM THE ANNUAL ARTS GRANTS, BECAUSE I KNOW HOW IMPORTANT THAT IS TO OUR LOCAL, UH, ARTISTS AND ART GROUP.
SO, UM, I'M VERY HAPPY TO SEE THAT.
AND I ALSO SAY, I WANNA SAY ONE OTHER THING.
I, I DEFINITELY SUPPORT THE $1 INCREASE FOR, UH, THE ICEMAN.
AS WE ALL KNOW, AS BUILDINGS AGE, THEY TAKE MORE TIME AND ENERGY AND MONEY TO, TO, UH, MAINTAIN.
SO, UM, I'M HAPPY TO SEE THAT.
AND I ALSO LOOK THAT WE'RE GONNA CONTINUE WITH THE WILDFLOWER ON FRIDAY, SATURDAY, AND SUNDAY AT THIS POINT.
COUNCIL MEMBER CORCORAN, IF WE HAVE AN UNEXPECTED AMOUNT OF REVENUE COMING INTO THE HOTEL MOTEL FUND, WHERE IS THE GREATEST NEED WITHIN THE BUDGET? IS IT THE INFRASTRUCTURE AT THE EISMAN CENTER ITSELF? UH, I THINK FROM A CAPITAL STANDPOINT, DEFINITELY.
UM, YOU KNOW, IF, IF WE ARE SEEING AN INFLUX OF REVENUE OR IF OUR PROJECTIONS, UM, MM-HMM
YOU KNOW, OUR, IF THE REVENUE STARTS TO EXCEED OUR PROJECTIONS, UM, YOU KNOW, WE HAVE BEEN WORKING ON A CDB MASTER PLAN TO, TO BE BRIEFED, UM, TO YOU, UM, AND SHARED WITH YOU IN THE FUTURE.
SO I THINK SOME INITIATIVES OUT OF THAT, UM, COULD BE, UM, COULD BE A PLACE FROM AN OPERATION SIDE WE WOULD GO TO, YOU KNOW, UM, THERE DEFINITELY THINGS, UM, THAT IF WE HAD MORE RESOURCES, UM, WE COULD DO IT MORE AGGRESSIVELY, UM, FOR WILDFLOWER, FOR FIFA, FOR, YOU KNOW, COTTONWOODS.
AND SO, UM, YOU KNOW, A LOT OF THE, A LOT OF, UM, A LOT OF THE ACTIVITY THAT YOU SEE OUT OF THE CVB IS IF, AS A MATTER OF FACT, BOB'S GONNA COVER A SLIDE ON THE CVB, A LOT OF THE ACTIVITY THAT YOU SEE, UM, ASSOCIATED WITH THE CVB IS A BYPRODUCT OF ITS BUDGET.
UM, AND SO, UH, AS, AS YOU'LL COVER THAT, BUT I THINK, UM, I THINK FROM A CAPITAL STANDPOINT, THE EISMAN IS DEFINITELY HIGHEST PRIORITY.
AND THEN I THINK FROM AN OPERATION STANDPOINT, UH, CVB AND, AND, UM, UH, MAYBE, YOU KNOW, MAYBE SOME PLACEMAKING TYPE INITIATIVES THAT COULD ALSO BE ASSOCIATED.
[00:45:01]
DON, FOR THIS DETAIL, UH, BUDGET PRESENTATION AS USUAL.YOU DO ALL AS GREAT JOB NOW REGARDING THIS, UH, FIFA WORLD CUP THAT WE HAVE COMING UP.
YOU KNOW, EVEN THOUGH THERE IS NO PRACTICE PLAN FOR LIKE IN SMU OR ELLEN OR PLANO, BUT THERE WOULD BE SOME WATCH PARTY GOING ON THERE.
SO THOSE WOULD BE HUGE WATCH PARTY.
UH, NOW, YOU KNOW, WE DO HAVE THE RESTAURANT AND OTHER THINGS.
THAT'S WHAT I KNOW, BUT NOT, YOU KNOW, PEOPLE COMING FROM OVERSEAS, UH, TO LET THEM KNOW WE HAVE TO DO SOME ADVERTISEMENTS.
SO, BUT I HOPE YOU HAVE SOME BUDGET SET ASIDE FOR THAT.
ESPECIALLY, YOU KNOW, WHEN YOU ARRIVE AT THE GFW OR UH, UH, LOVEFIELD, YOU SEE THAT $4, THEY WOULD, YOU KNOW, ANNOUNCE THAT, YOU KNOW, I'M THE MAYOR OF DALLAS, YOU KNOW, WELCOME TO DALLAS, WE HAVE THIS AND THIS AND THAT.
SO SIMILAR THINGS, YOU KNOW, IF WE DON'T DO THOSE KIND OF ADVERTISEMENT, I DON'T THINK WE ARE GONNA BE, BE ABLE TO ATTRACT MUCH.
SO I THINK WE NEED TO LOOK AT THE BUDGET AND SEE HOW WE CAN ALLOCATE SOME OF THE, UH, MONEY AND HOW WE CAN SHOW THAT, YOU KNOW,
UH, OTHERWISE THOSE PEOPLE, THEY'RE GONNA BE PRE-PLANNED, HOW THEY'RE GONNA DO AND WHAT THEY'RE GONNA DO, UH, EVEN THOUGH THEY WILL BE DRIVING FROM THE ARLINGTON TO FRISCO, BUT THEY'RE GONNA MISS THE STOPPAGE.
SO ANYWAY, JUST SUGGESTION THAT A LINE ITEM WOULD BE GREAT.
SO FOR THAT, I, I, I COULDN'T AGREE MORE.
I MEAN, A AGAIN, IF WE CAN GET INTO A MORE OF A FIFA DISCUSSION TONIGHT,
I MEAN, UT DALLAS IS A GREAT EXAMPLE.
I MEAN, TO ONE, TO YOUR POINT, I THINK ONE OF THE, ONE OF THE COOLEST WATCH PARTIES WE COULD HAVE IN THE CITY OF RICHARDSON, UT DALLAS DOES, IS THEIR NEW E GAME GAMING, UH, FACILITY, RIGHT? YEAH.
AND SO WE'RE IN CON WE'RE IN DISCUSSIONS WITH UT DALLAS ABOUT THAT.
SO WE'RE, WE'RE NOT, WE'RE NOT GONNA TAKE A PASSIVE APPROACH TO, YOU KNOW, WELCOMING LIKE, LITERALLY MILLIONS OF PEOPLE FROM AROUND THE WORLD.
UM, WE'RE, BUT I DO THINK THAT WE HAVE OTHER, OTHER PARTNERSHIPS WITH INST INSTITUTIONAL PARTNERS LIKE UT DALLAS, FOR INSTANCE, THAT WE CAN LEVERAGE AND THAT WE CAN DO SOMETHING PRETTY UNIQUE AND PRETTY SPECIAL 'CAUSE OF THE RELATIONSHIPS THAT WE HAVE WITH THESE PARTNERS.
AND SO, BUT DON'T DISAGREE WITH ANYTHING YOU SAID.
UM, IF THE, YOU KNOW, IF THE FUNDING'S THERE, WE'RE GONNA, WE'RE GONNA MAKE SURE THAT WE DEDICATE IT TO, UM, YOU KNOW, UH, PUTTING, PUTTING RICHARDSON ON THE MAP SO THAT WHEN FOLKS ARE ARRIVING HERE IN NORTH TEXAS, THEY KNOW, THEY KNOW THAT WE'RE HERE AND THEY UNDERSTAND THAT WHAT WE CAN OFFER 'EM COMPARED TO, YOU KNOW, OUR NEIGHBORS.
UH, MR. MAGNER, YOU JUST KIND OF TOOK THE WORDS OUTTA MY MOUTH.
I WAS THINKING ABOUT UTD AS WELL.
I'M THINKING ABOUT THE CRICKET GAMES AND, AND, AND I, I'M SURE WE'RE FOLLOWING WHAT TYPE OF OR HOW MANY PEOPLE ARE USING OUR HOTELS AND MOTELS DURING, DURING THOSE EVENTS CURRENTLY, OR, OR ARE WORKING ON TOWARD WORKING TOWARD THAT GOAL? POTENTIALLY.
I MEAN, WE, WE DO TRACK OCCUPANCY RATES.
UH, I THINK JEFF'S GROUP, UH, AND CVB PROBABLY PAYS A LITTLE BIT MORE ATTENTION TO TRYING TO LINK THAT TO SPECIFIC ACTIVITIES.
BUT, UH, YEAH, WE, WE TRY TO FOLLOW ALL THOSE TRENDS.
WE, WE TRY TO, IF THERE WAS A SPIKE, UM, WAS THERE AN EVENT HERE THAT MIGHT'VE CAUSED IT, OR WAS THERE A WEATHER EVENT THAT CAUSED IT TO GO DOWN AND, AND TRY TO, YOU KNOW, FIND A, YOU KNOW, MODERATION IN THOSE.
UM, BUT YEAH, IT'S DEFINITELY SOMETHING WE TRY TO KEEP ON OUR RADAR.
WELL, AND POTENTIALLY, YOU KNOW, WITH THE SILVER LINE AND THE EVENTS AT UTD AND SOME OF THE OTHER THINGS WE JUST DISCUSSED, UH, I I, I WOULD CERTAINLY SEE, POTENTIALLY SEE THAT AS BRINGING THAT NEEDLE BACK UP, YOU KNOW, TO AT LEAST THE ZERO, UH, LINE.
UM, MR. MAGNER, JUST ONE QUESTION ABOUT THE, UH, DOLLAR ADJUSTMENT ON THE FACILITY MAINTENANCE FEE.
UM, WITH THE ADJUSTMENTS IN EISMAN PRESENTS AND STUFF LIKE THAT, WILL THIS DOLLAR PROVIDE AN ACTUAL, UM, NET ADDITIONAL DOLLARS, UH, EVEN IF WE HAVE SMALLER VIEWERSHIP BECAUSE OF EISMAN PRESENTS, OR, OR DOES IT HOLD US NEUTRAL, OR WHERE DOES THAT WELL, I MEAN, IT, IT, IT IS RECORDED IN A SEPARATE FUND FIRST, SO IT DOES NOT BENEFIT THE HOTEL FUND.
UM, BUT YEAH, WE, WE HAVE DAMPENED WHAT WE'VE ANTICIPATED THE IMPACT OF THE DOLLAR TO BE.
WHAT WE DO THINK THE, UM, ACTIVITY LEVEL IS.
SO IT IS BASED ON THE SAME ASSUMPTIONS THAT THE EISMAN CENTER AND EISMAN CENTER PRESENTERS ARE BASED ON, IS THE SAME ASSUMPTIONS WE BASE ON, UH, THE, THE EISMAN CENTER FACILITY FEE.
IT'S JUST SEGREGATED INTO A SEPARATE FUND, BUT NN NET, IT STILL INCREASES OUR MAINTENANCE FEES OR OUR MAINTENANCE DOLLARS THAT WE'RE COLLECTING FOR THE YEAR.
WE'RE, WE'RE ANTICIPATING THAT THE DOLLAR FOR, FOR 26 WOULD BE AN INCREASE OF ABOUT, UH, I THINK IT'S $97,000.
[00:50:01]
AWESOME.BOB, LET ME TURN IT OVER TO YOU NOW.
UH, THE AFTERNOON OR EVENING, WHATEVER IT IS.
SORRY, KINDA LOST TRACK OF WHERE I'M AT.
UM, THE, UH, WATER FUNDS ARE SECOND LARGEST FUND, UH, TOTAL REVENUE OF 119.9 MILLION.
UH, ABOUT 97.5% OF THAT COMES FROM THE SERVICE FEES FOR THE SALE OF WATER AND SEWER SALES, AS YOU SEE HERE.
UH, AS DON MENTIONED, UH, WE ARE PROJECTING A $6.5 MILLION INCREASE IN REVENUE.
UH, AND THAT IS MAINLY IN THE WATER AND SEWER SALE, UH, AREAS.
BOTH OF THEM DO INCLUDE THE 6%, UH, RATE INCREASE.
UH, AND THEN OUR OTHER REVENUE CATEGORIES COMBINED FOR ABOUT A TOTAL OF $3 MILLION.
UH, THIS IS OUR WATER, UH, CONSUMPTION OR WATER SALES FORECAST FOR THE NEXT FIVE YEARS.
AGAIN, WE TRY TO STAY ON THE CONSERVATIVE SIDE.
UM, YOU KNOW, AND IF WE, WE, UM, EXCEED THAT, THEN WE, YOU KNOW, TRY TO USE THAT ADDITIONAL REVENUE FOR SOME, UH, NON-REOCCURRING ONE TIME ITEMS. BUT AS YOU SEE ON THE LEFT THERE, WE'VE HAD SOME YEARS WHERE CONSUMPTION WAS LOW, SO WE DON'T WANNA OVERHEAT WHAT WE INTEN ANTICIPATE, BUT BASED ON GROWTH PATTERNS WE'RE SEEING NOW AND SOME AS, UH, ASSUMPTIONS ON, UH, UH, UH, CONSUMPTION FROM OUR, SOME OF OUR MANUFACTURING, UH, PARTNERS, UH, THIS IS WHAT OUR CURRENT FORECAST LOOKS LIKE.
UH, AS DON MENTIONED, AGAIN, THE 6% INCREASE WATER AND SEWER, THAT GENERATES ABOUT 5.6 MILLION OF THE, UH, TOTAL $6.6 MILLION INCREASE.
THE REMAINING $1 MILLION IS FROM GROWTH IN THE SYSTEM, UH, ACROSS ALL, UH, GROUPS.
AGAIN, AS DON MENTIONED, UM, FOUR, I'M SAYING THAT A LOT.
UM, 4% INCREASE WE'RE SEEING FOR WHOLESALE WATER, WHICH IS ABOUT 1.8 MILLION.
UH, AND THEN 15.5% INCREASE FOR, UH, SEWER, WHICH IS ABOUT 5.3 MILLION.
UH, SO SIGNIFICANT INCREASES THERE.
WE'RE ALSO SEEING ABOUT A $1.2 MILLION INCREASE, UH, IN OUR DEBT REQUIREMENT, AND THAT'S RELATED TO THE AGGRESSIVE, UH, CAPITAL PROGRAM THAT WE'VE UNDERTAKEN RECENTLY.
TOTAL OF EXPENDITURES 123 MILLION.
THIS IS ABOUT A 9.2% INCREASE, UH, OVER LAST YEAR.
UH, YOU'LL SEE, UH, THE MAJORITY OF THAT COMES THERE IN THE COUNT CONTRACTS CATEGORY.
UH, THAT INCREASES ABOUT 7.1 MILLION, AND ALMOST THE ENTIRE OF THAT INCREASE IS A RESULT OF THE INCREASES WE'RE SEEING FOR WATER AND SEWER, UH, SERVICES.
WATER SYSTEMS, THIS IS, UH, MAINLY, UH, WATER OPERATIONS AND WATER PRODUCTION.
UM, IT INCREASED $2.8 MILLION FOR NEXT YEAR, 5.8%.
UH, 1.7 OR 1.8 MILLION IS DUE TO THE WATER CONTRACT.
UH, WE ALSO HAVE THE 500,000 ASSOCIATED WITH THE, UH, LEAD AND COPPER PIPING INSPECTION.
UH, ANOTHER AREA WE'RE SEEING AN, AN INCREASE IN THIS, UM, UH, FUND AS WELL AS WE'RE SEEING ANOTHER FUNDS.
ELECTRIC INCREASES ARE, YOU KNOW, IT, IT'S, YOU KNOW, UM, HIGHER RATE NEXT YEAR, BUT THE BIGGEST THING THAT'S DRIVING THIS IS THE 8 25 ZONE.
UH, PUMPS WILL COME ONLINE THIS NEXT YEAR, AND THAT'S GONNA INCREASE ABOUT $220,000, UH, IN TOTAL EXPENSES.
UM, CAPITAL INVESTMENTS FOR THE WATER SYSTEM.
UH, WE ARE REPLACING A, UH, SERVICE TRUCK WITH CRANE BODY, UH, FOR ABOUT 185,000.
UH, UH, WE ARE, UH, ADDING ABOUT 60,000 TO OUR FIRE HYDRANT MAINTENANCE PROGRAM TO ACHIEVE THE ISO ONE RATING.
AND THEN, UH, ONE OF THE BIGGER IMPACTS IS THE SIX POSITIONS THAT WE ADDED MIDYEAR THIS YEAR.
UH, IN RESPONSE TO SOME OF THE, UH, YOU KNOW, OPERATIONAL ASSESSMENTS THAT WE WENT THROUGH, UH, THIS, UH, PAST FALL AND WINTER SEWER SYSTEM, UH, BUDGETED, UH, 63.2 MILLION.
THIS IS AN INCREASE OF 5.5 MILLION.
UH, 5.3 MILLION OF THAT IS A RESULT OF THE, UH, SEWER CHARGES WE'RE RECEIVING FROM, UH, NORTH, UH, NORTH TEXAS, DALLAS, AS WELL AS GARLAND.
A LOT OF THAT IS RATED, UM, RATE DRIVEN, BUT SOME OF IT IS, UH, FLOW DRIVEN AS WELL.
UH, WE ARE OUT, UH, DEDICATING 278,277,000 TO THE, UH, INDUSTRIAL PRE-TREATMENT MONITORING PROGRAM AND THE 170,000 TO THE SANITARY SEWER MAINTENANCE, UH, MATERIAL, UH, LINE ITEM SYSTEM MAINTENANCE.
THIS IS A METER SHOP, CMOM, AND THEN CONSTRUCTION, UH, CMOM IS SEEING A SLIGHT DECREASE, BUT THAT IS ALL DRIVEN BY PERSONNEL COSTS.
AND THEN METER SHOP AND CONSTRUCTION ARE COMBINED, UH, FOR 2.5 MILLION.
IT IS A REDUCTION OF ABOUT, UH, UH, TWO, UH, 380,000.
UH, THIS IS BECAUSE IN 25, WE, UH, FUNDED A REPLACEMENT OF A HYDRO EXCAVATOR, WHICH WAS ABOUT 400,000.
SO THAT FUNDING WILL NOT CARRY FORWARD, UH, INTO THE NEW YEAR.
UH, THE ADMIN, UH, $5 MILLION, IT'S AN INCREASE OF 356,000 A HUNDRED.
AND, UH, 63,000 OF THAT IS FOR, UM, PAID PLAN ADJUSTMENT RESERVE.
AND, UH, WE'RE ALSO SEEING ABOUT $187,000 INCREASE IN OUR INSURANCE PREMIUMS.
[00:55:01]
UH, IT ALSO COVERS, UH, OUR CUSTOMER SERVICE GROUP, ABOUT 1.5 MILLION AND GIS ABOUT, UH, 690,000.UH, THIS AREA IS ALSO SEEING, UH, ONE OF THE POSITIONS THAT WAS SPLIT FUNDED THAT WE REFERENCED, UH, EARLIER.
UH, WE ARE SEEING AN INCREASE FOR NEXT YEAR, UH, 153,000 IN THE G AND A AREA.
THIS IS BASED OFF OF THE MOST RECENT COST ALLOCATION PLAN, UH, AND ADJUSTED FOR INFLATION.
UH, WE WILL BE UPDATING THAT THIS COMING, UH, UH, FALL AND WINTER.
UM, FRANCHISE FEES IS BASED ON 5% OF WATER AND SEWER SALES, INCREASING ABOUT 332,000, AND THEN THE BAIC TRANSFER IS, UH, TIED TO 50% OF THE BAIC, UH, PROGRAMS COST IN THE, UH, SOLID WASTE FUND.
NO CHANGE TO THE IT TRAFFIC INITIATIVE.
THE DEBT SERVICE, UH, REQUIREMENT, UH, OF, UH, IS INCREASING, UH, UH, 917,000.
UM, AND THEN PAGE, YOU GO ALLOCATION OF 2.1 MILLION FOR NEXT YEAR DRAINAGE FUND.
AS DON MENTIONED, WE ARE LOOKING AT A $1 INCREASE, AND THEN THE, UM, EQUIVALENT INCREASE ON THE COMMERCIAL SIDE.
UH, WE THINK THIS IS, WILL GENERATE ABOUT $758,000.
UH, AND YOU KNOW, AGAIN, WE'RE, WE'RE LOOKING AT HIGHER THAN ANTICIPATED OR NOT HIGHER ANTICIPATED, HIGHER, UH, COSTS FOR SOME OF THESE PROGRAMS IN CONSTRUCTION PROJECTS.
UH, AND THIS WILL ALL GO TO, UH, INCREASING OUR DEDICATION TO PROJECTS, OUR SOLID WASTE FUND.
IT'S OUR, UH, LARGE OR THIRD LARGEST FUND, UH, $20.1 MILLION IN TOTAL EXPENDITURES, UH, REVENUE WISE, UH, 20.4 MILLION.
UH, 95% OF THAT COMES FROM THE CHARGES THAT OUR RESIDENCY, UH, FOR, FOR TRASH AND, UH, RECYCLING PICKUP, AS WELL AS OUR COMMERCIAL CUSTOMERS.
YOU'LL SEE THERE, WE HAVE A $200,000 INCREASE, UH, FOR RESIDENTIAL.
THAT MAJORITY OF THAT IS RELATED TO THE 50 CENT INCREASE ON, UH, THESE, THE RESIDENTIAL ACCOUNTS.
WE ARE CONTINUE TO MAINTAIN THE 26% SENIOR DISCOUNT WITH THAT INCREASE.
AND THEN COMMERCIAL IS INCREASING ABOUT 700 OR 674,000, UH, OF THE, THE INCREASE, AGAIN, THE INCREASES ON THE COMMERCIAL.
AGAIN, WE, WE DO A MARKET SURVEY, A BENCHMARK WITH OUR AREA CITIES.
WE ALSO LOOK AT SOME OF OUR COSTS, AND WHEN WE, WE LOOK AT WHERE WE WERE LACKING, WE HAD SOME CONTAINER, UM, CONTAINER DELIVERY AND SET UP RELATED FEES.
UH, WE WE'RE GONNA, WE'RE SUGGESTING THAT WE INCREASE THOSE, UH, ABOUT 33%.
THIS, AGAIN, KEEPS US IN THE, UH, MARKET RANGE FOR THOSE SERVICES.
UH, IT DOES HELP CO UH, COST RECOVERY IS FOR THOSE, UM, SERVICES, UH, THE REMAINING ONES.
WE ARE, WE'RE LOOKING AT ESTABLISHING A NEW, UH, OVERLOADED CONTAINER, UH, FEE FOR FRONT LOADERS AT OF $50.
UH, WE ARE SEEING SUBSTANTIAL IN, UH, DAMAGES WHEN SOME OF THESE FRONT LOADERS ARE OVERFILLED, AND THEN WHEN THEY GO TO DUMP 'EM, WE'RE GETTING CRACKED WINDSHIELDS AND OTHER KIND OF DAMAGE TO THE VEHICLES.
SO WE'RE GONNA START CHARGING, UH, WE'RE PROPOSING CHARGING $50 FOR THAT.
UH, THE SPECIAL PICKUPS, UH, UH, THE FRONT YARD, FOUR YARD FRONT LOAD IS GOING FROM A HUNDRED DOLLARS TO 1 0 6, AND THEN THE EIGHT YARD IS GOING FROM A HUNDRED DOLLARS TO $173.
UH, THE, THE REASON WE'RE SEEING THAT LARGER INCREASE IS THE DIFFERENCE BETWEEN THE PICKUPS FOR SOME OF THOSE CATEGORIES, WHETHER IT'S ONE DAY, TWO DAY, THREE DAY WAS NOT BIG ENOUGH.
SO WHAT WE WERE SEEING WAS, UH, CUSTOMERS CALLING IN FOR THE EXTRA PICKUP INSTEAD OF REEVALUATING, UH, THEIR SERVICE LEVEL.
SO THIS WILL, WE HOPE, MAKE THEM REALIGN THEIR SERVICE LEVEL WITH THEIR TRUE NEED VERSUS CALLING IN FOR SPECIAL PICKUPS.
UM, DISPOSAL FEES, UH, ARE GOING UP ON AVERAGE 3%, AND THIS IS MOSTLY IN LINE WITH THE INCREASES WE'RE SEEING FROM THE, UH, THE LANDFILL FEE.
AND THEN THE RENTAL FEES ARE ALSO GONNA GO UP ROUGHLY 3%.
UH, THE OTHER CATEGORY, UH, FRONT LOADERS, WE'RE ALSO PROPOSING A 3% INCREASE.
AGAIN, MOST OF THIS IS A RESULT OF THE INCREASE WE'RE SEEING IN OUR LANDFILL CHARGES, WHICH, UH, IS GOING UP ABOUT 2.5% NEXT YEAR.
TOTAL EXPENDITURES OF 20.2 MILLION, UH, ABOUT 19.8 MILLION, OR EIGHT 19.8% OF THAT IS RELATED TO THE DISPOSAL FEES.
UM, IT IS A VERY HEAVILY, UH, PERSONNEL DRIVEN, UH, FUND.
UH, THE, UH, MAJORITY OF THE INCREASE YOU'LL SEE THERE IN PERSONNEL, UH, 287,000 PROFESSIONAL SERVICES IS WHERE WE'RE SEEING AN IMPACT OF THE, UH, INSURANCE, UH, PREMIUMS INCREASE.
AND THEN THE CONTRACTS AREA IS RELATED TO THE RECYCLING CONTRACT WHERE WE'RE SEEING MORE TONNAGE, UH, COMING IN ON THAT.
UH, COMMERCIAL SOLID WASTE, UH, IS GOING, UH, IS, IS GONNA BE BUDGETED AT 4.1 MILLION.
THIS IS AN INCREASE ABOUT 97,000 OR 2.4%.
[01:00:01]
UH, THIS DOES INCLUDE A POSITION THAT WAS ADDED AND SPLIT BETWEEN WATER FUND AND THE SOLID WASTE FUND, UH, TO HELP, UH, DO SOME ANALYTICS WORK FOR BOTH, UH, BOTH GROUPS.LANDFILL FEES ARE GOING UP ABOUT 57,000, ABOUT 2.3% INCREASE.
IT IS A COMBINATION OF A 1.6, UM, PERCENT INCREASE IN THE RATE, AS WELL AS A 1.8% INCREASE IN THE EXPECTED TONNAGE.
UM, IT IS ALSO IMPORTANT TO SAY WE WE'RE EXPECTING A 9.1% INCREASE IN OUR LANDFILL CHARGE NEXT YEAR, AND THAT'S ALSO KIND OF DRIVING WHY WE'RE, WE'RE TRYING TO GO WITH THAT RATE INCREASE NOW.
UH, SOME OF THE CAPITAL IMPROVE OR CAPITAL REPLACEMENTS THAT WE WERE, UM, PROPOSING, AND THESE ARE, UM, FINANCED THROUGH THE DEBT SERVICE FUND.
UH, 255,000 FOR A ROLL OFF TRUCK FRONT LOADER FOR 450,000, AND THEN SOME CONTAINER REPLACEMENTS OF FOR ABOUT 118,000 RESIDENTIAL, UH, SAW WASTE.
THIS IS RESIDENTIAL COLLECTIONS BAIC, AS WELL AS RECYCLING.
COMBINED TOTAL BUDGET OF, UH, 7.9 MILLION.
THIS IS AN INCREASE OF 115,000 OR 1.5%.
THAT DOES INCLUDE ANOTHER POSITION THAT WAS, UH, SPLIT BETWEEN THE WATERFRONT.
LANDFILL FEES ARE EXPECTED TO GO UP, UH, ABOUT 31,000 TO, UH, JUST SHY OF 1.4 MILLION.
UH, THE COMPOSTING PROGRAM, UH, IS HELD FLAT AT, UH, 350 OR 235,000, UH, $680.
UH, THAT, THAT DOES SEEM TO BE HOLDING AT THE MOMENT.
UM, AND THEN THE RECYCLING CONTRACT, UH, IS GONNA GO UP, UH, ABOUT 29,000 TO 563,000.
AND THAT'S RELATED TO THE INCREASED TONNAGE WE'RE SEEING BEING SENT TO THE, UH, RECYCLING CENTER.
UH, KIND OF AN OFFSET FOR THAT IS WE DO ANTICIPATE ABOUT $300,000 AS OUR PORTION OF THE, UH, RECYCLING PROCESS, AND THAT IS RECORDED IN OUR RESIDENTIAL REVENUE CATEGORY.
UH, SOME OF THE KEY INVESTMENTS, UM, WE ARE ADDING, WE'RE RECOMMENDING ADDING A BABIC FIELD SUPERVISOR, AND THIS IS COMING OUT OF THE SOLID WASTE MASTER PLAN.
AND THEN WE WERE ALSO PLANNING TO REPLACE TWO REAR LOADERS FOR A TOTAL OF 670,002 KNUCKLE BOOM TRUCKS FOR 710,000.
OVER THE LAST COUPLE YEARS, WE HAVE BEEN DEDICATING, UH, EXCESS RESERVES TO THE CAPITAL RESERVE FUND IN ANTICIPATION OF SOME OF THE STUFF COMING OUTTA THE SOLID WASTE MASTER PLAN.
ONE OF THOSE THINGS WAS FRONTLINE RELIABILITY, AND WE ARE GONNA TAKE AN OPPORTUNITY TO USE SOME OF THE FUNDS THAT WE'VE BEEN BEEN PUTTING OVER THERE THE LAST COUPLE YEARS TO, TO BUY SOME ADDITIONAL VEHICLES TO INCREASE THAT FRONTLINE RELIABILITY.
UH, ONE REAR LOADER AT 335,000, TWO KNUCKLE BOOMS FOR 710,000.
AND THEN WE'RE ALSO GONNA USE, UH, THAT RESERVE TO PURCHASE THE PICKUP TRUCK FOR THE, UH, SOLID WASTE, UH, FIELD SUPERVISOR, THE ADMIN AREA.
BOB, BOB, BEFORE YOU CONTINUE? YES.
DID DI A YEAH, I'M SORRY IF I MISSED IT.
UM, WHEN WAS THE, DID YOU MENTION WHEN THE LAST TIME SOME OF THOSE CHANGES? WE DID INCREASE, SO COMMERCIAL, THERE'S USUALLY, UH, AN INCREASE EVERY YEAR.
IT MIGHT NOT HIT THE SAME CATEGORY, BUT WE DID FOR FY 25 INCREASE MM-HMM
RESIDENTIAL, UH, RESIDENTIAL RATE BY $2.
SO THIS WOULD BE ON ADDITION TO WHAT WE ADDED FOR 25.
SO GENERALLY THOSE FEES ON BOTH CHANGE EVERY YEAR, RESIDENTIAL AND COMMERCIAL, UH, RESIDENTIAL, UH, WE, WE HAVE RECENTLY HAD TO, UH, A LOT OF THAT IS BASED ON THE, THE FEE INCREASES.
WELL, WE'RE ANTICIPATING LARGE FEE INCREASES COMING UP FROM NORTH TEXAS.
WE HAVE TRIED TO KEEP THAT AS MINIMUM AS POSSIBLE, BUT IS VERY PERSONNEL DRIVEN.
UM, AND SOME OF THE, THE, UM, INITIATIVES WE'VE TAKEN RECENTLY TO INCREASE THE MINIMUM SALARY AND THAT KIND OF THING HAS PUT A PRESSURE ON THIS FUND SPECIFICALLY, AND THAT IS TYPICALLY IN THE RESIDENTIAL AREA.
THE OTHER AREA WE'RE SEEING IS SOME OF THESE RESIDENTIAL, THE REAR LOADING VEHICLES, THE PRICE OF THOSE HAVE GONE UP TREMENDOUSLY.
IT'S PROBABLY TRIPLED IN ABOUT THE LAST 10, 15 YEARS.
ESPECIALLY LIKE WE'RE JUST PASSING ON A FEE TO THE CUSTOMER AND THAT THAT'S FINE.
I JUST WANTED TO, I JUST WANTED TO KNOW IF IT WAS SOMETHING THAT WHEN, IF I'M EVER ASKED ABOUT IT.
IS IT SOMETHING THAT HAPPENS OFTEN OR NOT? THAT'S, THAT'S WHY I, I MEAN, UNFORTUNATELY IT'S BEEN MORE OFTEN RECENTLY THAN WHAT WE'VE BEEN, WHAT WE'VE WOULD'VE HOPED.
UM, AS PART OF OUR ANALYSIS, WE DO, YOU KNOW, WHAT THE TRUE WHAT WE, YOU KNOW, COST OF SERVICE.
WE TRY TO MAKE SURE WE'RE NOT CHARGING MORE THAN WHAT WE FEEL THE SERVICE ACTUALLY COSTS US.
AND, AND, AND I CAN ASSURE YOU THAT WE'RE, WE'RE UNDER THAT, THAT TARGET.
UM, YOU KNOW, IN ADDITION TO SOME OF THE EQUIPMENT CHANGES, UM, HOW, I MEAN, I KNOW WE DON'T HAVE A
[01:05:01]
LOT OF LANDMASS TO BUILD NEW NEIGHBORHOODS, BUT WE DO HAVE NEW NEIGHBORHOODS THAT ARE BEING DEVELOPED.YOU KNOW, THERE'S ONE ON ARAPAHOE, THERE'S BEEN A COUPLE OVER OFF OF BUCKINGHAM, AND, AND THERE'S BEEN SOME INFILL INCLUDING LIKE THE MOST PLACE DID.
HOW, WHAT PERCENTAGE OF THAT CURRENTLY HAS BEEN OUT, UH, SORT OF CONTRIBUTED TO SOME OF THE INCREASE IN ADDITION TO ALL THE OVER, UM, OVERAGES? UH, I, I DON'T BELIEVE WE'VE ADDED A RESIDENTIAL ROUTE OR ANYTHING LIKE THAT.
I MEAN, IT, WHERE I WOULD SAY WE'RE SEEING THAT STRAIN IS PROBABLY ON THE, UM, OVERTIME SIDE.
SOME OF OUR CREWS ARE TAKING LONGER TO FINISH BASED OFF OF, YOU KNOW, SOME OF THIS ADDITIONAL GROWTH.
UM, BUT WE'RE ALSO SEEING THE REVENUE SIDE OF THAT TO HELP OFFSET SOME OF THAT.
UM, WE DON'T HEAT UP THE GROWTH SIDE ON THE COM ON THE RESIDENTIAL SIDE, JUST BECAUSE WE ARE KIND OF GETTING TO THE BUILD OUT AREA MM-HMM
UH, BUT WE DO BUILD IN SOME OF THAT.
BUT YEAH, SOME OF THOSE DEVELOPMENTS HAVE PUT A LITTLE BIT OF A STRAIN, UH, BUT YOU KNOW, RIGHT NOW WE'RE CONTINUED TO, UH, TO PERFORM, UH, WITHIN THE, THE CURRENT STRUCTURE OF THE PROGRAM.
AND I, AND I, AND I, AND I TOTALLY GET THAT WE DON'T HAVE A LOT OF NEW DEVELOPMENTS GOING IN, AND, AND I KNOW THAT THE MULTIFAMILY IS MORE ON THE COMMERCIAL SIDE.
BUT I, I DO KNOW THAT THERE'S BEEN SOME INFILL WITH SOME OF THE SMALLER NEIGHBORHOOD OR, OR SOME OF THE INFILL IN SOME OF THE EXISTING NEIGHBORHOODS.
SO I JUST DIDN'T KNOW IF YOU HAD TO REROUTE, UH, OR ADD TO THE ROUTE, OR IS THAT A, IS THAT PROVIDE A DIFFERENT ROUTE OR, WELL, YEAH, PUBLIC, UH, PUBLIC SERVICES WORKS CLOSELY WITH OUR GIS DEPARTMENT TO MAP OUT THEIR ROUTES FOR, FOR RESIDENTIAL.
UH, ACTUALLY, SOME OF THE, MY UNDERSTANDING, UM, SOME OF THE INFILL HAS ACTUALLY HELPED WITH SOME OF THAT BECAUSE YOU'D HAVE A TRUCK THAT FINISHES UP A ROUTE AND IT'S NOT FULL, AND THEN IT GOES AND DUMPS IT, BUT NOW IT'S ABLE TO CATCH THOSE THAT'S CORRECT.
BUT THOSE ARE SOMETHING THAT, UM, THAT THE ROUTES, UM, IS SOMETHING THAT, UH, PUBLIC SERVICES WORK WITH OUR GIS DEPARTMENT TO ENSURE THAT WE'RE, WE'RE DOING THAT THE MOST EFFICIENT WAY WE CAN.
UH, AGAIN, IN THE ADMIN, WE DO HAVE, UH, THE PAY PLAN ADJUSTMENT, UH, RESERVED HERE TO BE BROKEN OUT ONCE, UH, TO THE DIVISIONS.
ONCE IT'S, UH, BEEN APPROVED, UH, TRANSFERS OUT, G AND A, UH, IS ANTICIPATED TO INCREASE BY 72,000.
AGAIN, BASED OFF OUR MOST RECENT COST ALLOCATION PLAN, FRANCHISE FEES, IT PLANNED TO INCREASE ABOUT 44,000.
AND IT IS A, UM, RELATION TO THE INCREASE IN REVENUE.
DEBT SERVICE IS ACTUALLY GONNA DECLINE FOR NEXT YEAR.
UH, WE'VE HAD SOME DEBT THAT HAS BEEN PAID OFF RECENTLY.
THAT, AND THEN SOME OF THE CASH FUNDING, UH, INITIATIVES WE'VE DONE RECENTLY HAS ALLOWED US TO, TO MAINTAIN THAT.
UH, THE PAY AS YOU GO COMMITMENT FOR NEXT YEAR IS ABOUT 666, 660 7,000 GOLF FUND.
UH, THIS ONE IS A, A GOOD STORY FOR US.
UM, LAST YEAR'S BUDGET WAS NOT BUILT ON A, ON BOTH COURSES BEING OPEN FOR 12 MONTHS.
THIS BUDGET FOR 26 IS BASED ON, UH, BOTH COURSES BEING OPEN FOR 12 MONTHS.
SO THAT'S WHERE YOU'RE SEEING SOME OF THE INCREASE IN THE REVENUE.
UM, AGAIN, NO RATE INCREASE, BUT WE ARE ANTICIPATING ABOUT $185,000 INCREASE TO ABOUT 3.5 MILLION, BOTH, AGAIN, BOTH COURSES BEING OPENED.
UH, FOR BO FOR THE FULL YEAR, UH, GREEN FEES AT 2.4 MILLION, THAT'S AN INCREASE OF 123,000 CART FEES AT 884,000, WHICH IS AN INCREASE ABOUT A HUNDRED, 2000 GOLF EXPENDITURES.
UH, AGAIN, BASED ON THE BOTH COURSES BEING OPENED, 3.5 MILLION, UH, 38.5% OF THAT IS, UH, PERSONNEL BASED.
AND THAT'S WHERE WE'RE, WE ARE SEEING SOME OF THE INCREASE THERE.
AND THEN WE'RE ALSO SEEING IT IN THE PROFESSIONAL SERVICES AREA, WHICH IS RELATED TO INSURANCE PREMIUMS, UH, THE INCREASE THERE IN SUPPLY, MISCELLANEOUS COST OF FERTILIZER AND OTHER, YOU KNOW, WEED CONTROL PRODUCTS FOR BOTH, UH, GOLF AND, UM, PARKS MAINTENANCE HAS INCREASED RECENTLY, AND THIS IS WHERE WE'RE SEEING THAT TO TRY TO STATE, YOU KNOW, TRY TO MAINTAIN THOSE COURSES, UH, BASED ON THE, THE ACTIVITY WE'RE SEEING OUT THERE.
HEY, UH, DON, OR MAYBE BOB, UM, I REMEMBER LAST YEAR WE CHANGED THE STRUCTURE AND HOW WE WERE DOING THE, UH, THE BLOCKS OF CARDS.
HOW DID THAT TURN OUT? HOW DID THAT WORK OUT? JUST QUICK.
OR I'M ASSUMING WE'RE NOT MAKING ADJUSTMENTS TO THAT, SO THAT'S, WE'RE STILL GOOD ON THAT.
OR YOU'RE TALKING GOLF CART? YEAH, THE, UM, THE SENIOR CARDS.
REMEMBER WE WENT FROM THE PUNCH CARD.
NOW, THERE WAS A RUSH AT THE END OF LAST YEAR BECAUSE WE GAVE THEM TWO YEARS, SO THERE WAS A PRETTY GOOD RUSH THAT COME IN AND BUY, UH, PUNCH CARDS.
BUT WE'VE SEEN A LOT OF PEOPLE USING THE, UH, RESIDENTIAL RATE DISCOUNTS BEEN WORKING OUT REALLY WELL.
SO IT'S, AS FAR AS NUMBERS, IT WORKS OUT AND WE'RE HAPPY WITH YOU'RE GETTING RESULTS OF IT.
[01:10:03]
UH, THE OPERATIONS AND ADMINISTRATION GROUP, WHICH IS PRETTY MUCH THE ONLY THING THAT'S IN THAT FUND, UH, OTHER THAN, UH, PROBABLY FRANCHISE FEE OR, UH, G AND A, UH, GOLF CART RENTALS IS BUDGETED 162,000 OR 161,000, UH, WHICH IS UNCHANGED, UH, BASED ON A CONTRACT THAT WE RECENTLY SIGNED LAST YEAR.INSURANCE PREMIUMS IS INCREASING OF ALMOST $50,000.
A LOT OF THAT HAS TO DO WITH THE REOPENING, OF COURSE, TWO, UH, AND THEN ADDING SOME ADDITIONAL COVERAGES OUT AT THE GOLF COURSE.
UH, IRRIGATION MAINTENANCE IS INCREASING 5,000 TO 45,000.
AND THEN LANDSCAPING SUPPLIES, AGAIN, IS WHERE WE'RE SEEING A LARGE INCREASE OF ROUGHLY 25,000, UH, FOR NEXT YEAR.
SOME OF THE CAPITAL INVESTMENTS, UH, IN THE OPERATING FUND ITSELF, WE'RE SETTING ASIDE $50,000 FOR THINGS LIKE CART PATH REPAIRS, FENCE REPLACEMENT, AND UH, GREEN COVERS AND SOD, AND THEN OUT OUT OF THE CAPITAL RESERVE FUND, UH, WHICH WE MAKE AN ALLOCATION EACH YEAR, ABOUT 201,000 FOR THE REPLACEMENT OF A, A, A SWEEPER, A GREENS ROLLER, A ROUGH MOWER, A TOP DRESSER, AND A UTILITY CART OUT THE GOLF COURSE.
WITH THAT, THE GOLF COURSE IS ANTICIPATED TO MEET ITS, UH, TARGET OF 60 DAYS, 30 BUILDING TO 60 DAYS.
AGAIN, WE'RE, UH, PARTICIPATE OR ANTICIPATING THIS TO BE AT, UH, 60.99 DAYS AT THE END OF NEXT YEAR.
UH, THE G AND A, AGAIN, IS TIED TO THE MOST RECENT UPDATE OF COST ALLOCATION PLAN, AND THIS IS WHERE WE'RE SEEING THE 353,000 THAT'S SET ASIDE FOR THE CAPITAL RESERVE FOR NEXT YEAR HOTEL FUND.
UH, $8.5 MILLION IN EXPENDITURES.
UH, ABOUT 60% OF THAT COMES FROM THE HOTEL TAXES, AND ABOUT ROUGHLY 32% COMES FROM THE EISMAN CENTER AND EISMAN CENTER PRESENTS, UH, ACTIVITY OUT THERE.
AS WE DISCUSSED EARLIER, TAX REVENUE, UH, BASED ON SOME OF OUR CONSERVATIVE ASSUMPTIONS, IS GOING TO DECLINE ABOUT 215,000 BUDGET TO BUDGET, 200, 230 5,000 BUDGET TO BUDGET.
UM, AGAIN, WE'RE TRYING TO STAY ON THE CONSERVATIVE SIDE OF, OF, UH, OF PROJECTING THOSE.
UH, AND THEN THE EISMAN CENTER FOR THE, UH, REASONS WE MENTIONED A LITTLE EARLIER.
UM, I DO WANNA POINT OUT, UH, ON THE EISMAN CENTER OPERATIONS REVENUE, THAT SHOULD SAY 4 99 THERE.
UH, AND THEN AGAIN, WE'RE RIGHT SIZING THE, UM, THE EXPECTATIONS FOR THE EISMAN CENTER PRESENTS GOING INTO NEXT YEAR.
UM, WE DO HAVE SOME FEE RECOMMENDATIONS, UH, GOING FORWARD FOR NEXT YEAR.
UH, THIS IS YEAR THREE OF A THREE YEAR LOOK.
UH, WE ARE RECOMMENDING THREE NEW ONES, A MANAGER ON DUTY FEE OF $200, UH, FOR, UM, DAYS THAT THE EVENT IS OPEN TO THE PUBLIC, UH, TICKET OFFICE SUPPORT FEE, AS WELL AS SOME TICKETING, UH, UM, TICKETING PROCESSING OR TICKETING SETUP FEES.
THEY ARE KIND OF INDUSTRY STANDARD, UH, TYPE, UH, UH, FEES, UH, THE MAN, UH, THE WARDROBE SUPPLIED BUNDLE.
THIS IS KIND OF TRYING TO SIMPLIFY, UH, SOME OF THE RATE STRUCTURE OUT THERE.
THEY'RE BEING CHARGED FOR INDIVIDUAL THINGS.
THIS IS JUST GONNA BE, YOU KNOW, A BUNDLE.
YOU GET IT ALL, UM, FOR THOSE KIND OF THINGS.
AND THEN WE'RE GONNA START, UH, WE'RE GONNA INCREASE OUR, UM, UH, COST FOR OUR FEE FOR EMAIL BLAST.
WHERE WE'RE SEEING THAT ADDS UP TO ABOUT $45,000.
WHERE WE'RE SEEING A LARGER INCREASE IS IN THE PARKING FEES AT THE TOTAL, ABOUT $86,000.
MAJORITY OF THIS IS A RESULT IN THE RISE IN THE COST OF THE CONTRACT TO OPERATE THE EISMAN CENTER, UH, PARKING GARAGE, AS WELL AS THE, UM, THE SECONDARY PARKING FACILITY.
UH, YOU WE'RE, UH, GIVEN A HANDOUT EARLIER, UM, FOR SOME OF THE FEES THAT, UH, THE EISMAN CENTER CURRENTLY HAS.
THERE'S APPROXIMATELY A HUNDRED FEES THAT THEY CURRENTLY CHARGE.
UH, ONE OF THE OTHER THINGS THAT WE ARE RECOMMENDING IS WE WOULD LIKE TO, TO SIMPLIFY THAT, UH, TRY TO STANDARDIZE SOME OF THE FEES, TRY TO MAKE THEM GOING FROM HOURLY RATES TO DAILY RATES.
THIS WILL HELP OUR, OUR CUSTOMERS, OUR CLIENTS BETTER UNDERSTAND WHAT THEIR CHARGES ARE GONNA BE, AS WELL AS HELP ADMINISTRATIVELY TRY TO KEEP IT A LITTLE BIT MORE SIMPLE.
UH, A LOT OF TIMES THEY WOULD BE GIVEN A, A CLIENT MIGHT BE GIVEN A QUOTE, AND BECAUSE OF DIFFERENT TIERS THAT THEY'RE GOING THROUGH, THEIR END BILL DOESN'T NECESSARILY ADD TO WHAT THEY, UM, WERE GIVEN IN THAT INITIAL QUOTE.
SO THIS ALLOWS US TO, TO PRETTY MUCH SIMPLIFY IT AND, AND REALLY TRULY STICK TO THE MORE OF THAT, UH, PROPOSED QUOTE.
SO WE THINK WE'RE GONNA GO FROM ROUGHLY A HUNDRED FEES TO ROUGHLY 40 FEES.
SO WE'RE GONNA CUT ABOUT 60 FEES OUTTA THERE.
UH, THE INTENT IS TO NOT, UM, NECESSARILY, WELL, IT'S, IT'S NOT TO INCREASE THE EXPENSE
[01:15:01]
TO OUR, UH, CLIENTS, BUT WE'LL ACTUALLY SHOW A SLIGHT DECREASE.AND ON THIS, UH, SLIDE HERE, YOU'LL SEE AN EXAMPLE.
CURRENTLY, UH, THE NUTCRACKER WOULD CHARGE, UH, $10,366.
THAT WOULD ACTUALLY BE DECREASED BY ABOUT $200.
UM, THE BANK OF AMERICA HALL, UH, FOR HIGH SCHOOL MUSICAL, UH, 505, UH, 5,480 TO 5,412.
SO OUR INTENTS NOT TO DO THIS TO INCREASE REVENUE, BUT TO JUST SIMPLIFY THE RATE STRUCTURE OUT AT THE EISMAN CENTER, UH, THE EISMAN CENTER FACILITY FEE, AGAIN, UH, IT WAS ESTABLISHED IN 2014, UH, LAST INCREASED IN 2017, AND WE ARE RECOMMENDING THE ONE, UH, $1 INCREASE.
AND THEY USE THIS FOR, YOU KNOW, VARIOUS, UH, MAINTENANCE FOR AUDIO, VIDEO, AUDIO, VIDEO MAINTENANCE, UH, LIGHT LIGHTING REPAIRS, STAGE REPAIRS, AND THOSE KIND OF THINGS.
UM, A LOT OF THE CAPITAL IMPROVEMENTS THAT YOU'VE SEEN, UH, THE BIG ONES, YOU, THIS PAST COUPLE, TWO YEARS AGO, WE DID, UH, THE MAIN PERFORMANCE HALL AS WELL AS THE CURTAIN, UH, THAT WAS DONE THROUGH, UH, SOME RESERVES THAT WE HAD, AND NOT NECESSARILY THROUGH THIS FUND.
TOTAL EXPENDITURES OF THREE, UH, JUST A LITTLE OVER 3 MILLION OR 9 MILLION.
UH, AGAIN, THIS HAS GOT A PERSONNEL COMPONENT TO IT, UH, WHERE YOU SEE THE BIGGEST, UH, THIS IS A $720,000 IN, UH, DECREASE, UM, WHERE YOU SEE IN THE, UH, PROFESSIONAL SERVICES THAT IS RIGHT SIZING OF EISMAN CENTER PRESENT SERIES.
AND IT DOES ALIGN WITH THE REVENUE ASSUMPTIONS THAT, UH, THAT WE SET FORTH.
AND THEN WHERE, WHERE WE'RE SEEING THE REDUCTIONS IN THOSE OTHER AREAS, THAT IS A RESPONSE TO EISMAN CENTER TRYING TO, UH, TO ALIGN WITH THEIR REVENUE EXPECTATIONS AS WELL.
UH, EISMAN CENTER, UH, ITSELF IS DECREASING, UH, 162,000, UH, EISMAN CENTER PRESENT, AGAIN, IS THAT, UH, 595,000.
THE EISMAN CENTER, UH, PARKING GARAGE, UH, IS PROGRAMMED AT 699,000.
THIS IS AN INCREASE OF 54,000, AND THIS IS A RESULT OF, UH, THE INCREASE IN THE CONTRACT COSTS FOR BOTH THE MAIN PARKING GARAGE, AS WELL AS THE SEC, UH, SECONDARY FACILITY AT THE OVATION APARTMENTS.
CVB IS, UH, GONNA BE BUDGETED, UH, 475,000.
A LOT OF THAT IS ATTRIBUTED TO STAFFING.
UH, WE, UH, WE HAD TURNOVER, AND THIS PERSON, OR THE EMPLOYEE THAT WE HIRED WAS AT A SLIGHTLY HIGHER RATE THAN THE POSITION BEFORE.
UH, TRADE SHOWS IS SEEING A SLIGHT REDUCTION.
UH, THEY, THEY HAD SOME ADDITIONAL THINGS THEY DID THIS YEAR.
IT'S GONNA GO FROM 14,000 TO 7,000.
UM, AND THEN SOME OF THE SUPPLEMENTAL FUNDING WAS REMOVED.
THEY DID LOSE SOME PROMOTIONAL ITEMS IN THE CITY HALL FIRE A COUPLE YEARS AGO, FY 25.
UH, BUT THE 475,000 DOES BUDGET THEIR FULL ACTIVITY AND THEIR FULL INITIATIVES.
UH, WE, WE ARE NOT ANTICIPATING SCALING ANY OF THOSE BACK.
IT'S JUST WE MADE SOME MINOR ADJUSTMENTS ON SOME ONE TIME, UM, NEEDS, UH, NOT GOING FORWARD INTO THE NEW YEAR IN THE, UH, ADMINISTRATION AND CAPITAL RENEWAL.
UH, IT'S A REDUCTION OF 51,000.
AGAIN, ARTS GRANTS, UH, IS GOING TO STAY AT THE $375,000 LEVEL CAPITAL RENEWAL ITEMS. THIS, UH, AND FY 25, THERE WERE SOME, UH, LIGHTING IMPROVEMENTS AT THE PARKING GARAGE.
THOSE WON'T NEED TO BE CARRIED FORWARD.
SO, UH, $45,000 WILL NOT BE CARRIED FORWARD INTO THE NEW YEAR.
UH, THIS, BUT THIS AREA IS AN AREA WHERE WE ARE, UH, AGAIN, CARRYING THE, UH, RESERVE FOR THE PAY PLAN ADJUSTMENTS.
ARE THERE ANY QUESTIONS AT THIS TIME? OKAY, GREAT, BOB, THANKS, UH, FOR THAT DEEP DIVE INTO, UH, THE, THE FIVE FUNDS.
UH, OUR LAST TOPIC, COUNSEL, BEFORE WE TURN IT OVER TO YOU FOR DISCUSSION AND FEEDBACK, IS OUR CAPITAL AND DEBT PLANNING, UM, FOR THIS CURRENT BUDGET HERE.
UM, IF YOU, UH, LOOK AT OUR PROGRAM, IT SHOULD LOOK VERY FAMILIAR FOR YOU.
UM, WE'VE HAD, UH, SEVERAL DEEP DIVES, UH, OVER THE, THE PAST FEW WEEKS THAT, UM, HAVE PROVIDED THE DETAIL BEHIND THE RIGHT HAND COLUMN THERE, THAT THE LARGER NUMBERS, UH, UH, WE, YOU'RE VERY FAMILIAR WITH OUR, OUR 2023, UH, GEO PROGRAM FOR CITY HALL, THAT $25.3 MILLION NUMBER, UH, BEING ISSUED, UH, THE, THE, UH, 21, UH, GEO PROGRAM, UH, THIS IS YEAR FIVE OF THAT PROGRAM, UH, 1.8, UH, SEVEN, FIVE FOR STREETS.
UM, YOU SEE, UH, WE HAD TALKED AS CHIEF P PROVIDED YOU WITH AN UPDATE ON THE FIRE STRATEGIC PLAN.
WE TALKED ABOUT, UM, UH, INCLUDING AT THIS POINT, UH, FOR TRANSPARENCY, THE $3 MILLION.
UM, MORE TO COME ON THAT AS WE, UH, WRAP UP.
UM, UH, THE ACQUISITION CONSIDERATIONS.
UH, UM, SO MUCH MORE TO COME ON THAT WITH, WITH RESPECT TO FINAL COST.
UM, WE TALKED DURING THE AQUATICS MASTER PLAN, UM, ABOUT THE IMPORTANCE OF, UH, REINVESTING IN THE HEIGHTS AQUATIC CENTER, UH, REALLY BRINGING THAT UP INTO A CONDITION THAT WILL ENSURE IT'S, UH, UH, IT'S A, IT'S A VERY VALUABLE ASSET TO THE COMMUNITY FOR YEARS TO COME.
[01:20:01]
TWO, UM, AMBULANCE AND A BRUSH TRUCK.UH, I ALSO DISCUSSED DURING THE FIRE, UH, MASTER PLAN BRIEFING.
AND THEN, UM, AGAIN, BRAD, NICK AND ERIC ALL TEAMING UP TO PROVIDE YOU WITH THE WATER WASTEWATER INFRASTRUCTURE PLAN FOR THIS COMING YEAR.
AND THEN AGAIN, BOB, JUST KIND OF REFRESHING ON SOLID WASTE.
SO A TOTAL OF 64.1, UH, 64 MILLION, $145,000 WILL BE YOUR SERIES, UH, 2026.
IF YOU LOOK BACK, UM, AT OUR RECENT BOND PROGRAM HISTORY, AS I MENTIONED, UH, A FINAL YEAR OF 2021, UH, 2023 BEING AN EXPECTED, UH, BOND PROGRAM, BUT BEING DEDICATED, UH, ENTIRELY TO, UH, THE CITY HALL, UH, PROJECT.
AND, UH, I THINK A LITTLE BIT, IF I REMEMBER RIGHT, A LITTLE BIT OF, UH, CONTINGENCY AND, UH, ESCALATION FOR THE LIBRARY.
UH, BUT THAT, AGAIN, WRAPPING UP, BUT YOU SEE THE LAST 3, 15, 21, AND 20, UH, THREE ALL BEING A NO TAX RATE INCREASE BOND PROGRAM.
I'M NOT GOING, UH, GET INTO THE DETAILS OF THIS.
NICK PROVIDED YOU A, A REALLY IN-DEPTH CAPITAL PROJECTS UPDATE, BUT JUST WANTED TO SHOW YOU THE STATUS OF THE 21 BOND PROGRAM.
UH, YOU'LL SEE MAKING GOOD PROGRESS AND A NINE STREET PROJECTS COMPLETE.
ANOTHER 11 UNDER CONSTRUCTION.
THESE ARE BIG PROJECTS, UH, THINGS LIKE WEST SHORE AND, UM, UH, YOU SEE, UM, UH, JUST THE CANYON VALLEY, CANYON BROOK AND FOREST GROVE PROJECT, JUST CONCLUDING THEIR AHEAD OF SCHEDULE, IF I, IF I BELIEVE, UH, IF I REMEMBER RIGHT IN, IN THE CANYON CREEK AREA, UH, PUBLIC BUILDING SIDEWALKS, UH, UH, DOING GREAT, UH, MAKING GREAT PROGRESS THERE.
AND OF COURSE, UH, UH, PARKS, YOU SEE, UM, UH, MAKING SUPERIOR PROGRESS ON THEIRS.
UM, A LITTLE BIT ABOUT OUR CURRENT, UH, BOND PROGRAM MODELING.
UM, YOU'VE, UH, SEEN, UH, THESE ASSUMPTIONS, UH, BEFORE WE ARE VERY, VERY CONSERVATIVE IN OUR MODELING.
UM, WE USE A, UM, CONSERVATIVE INTEREST RATE OF ABOUT 4 7 5 TO 5 25 FOR FUTURE ISSU ISSUANCES.
UM, THAT AT ONE TIME WAS WELL ABOVE WHAT WE WERE ACHIEVING, UH, BUT STILL A CONSERVATIVE NUMBER.
UM, EVEN, EVEN TODAY, UH, WE ASSUME, UM, VERY MINIMAL, UH, TAXABLE VALUES, UH, GROWTH IN OUR TAXABLE VALUES.
AGAIN, A CONSERVATIVE STRATEGY THAT WE'VE USED FOR MANY YEARS.
SO IF YOU'RE LOOKING AT OUR MODEL MOVING FORWARD, WE ASSUME 0% GROWTH IN 27 AND 28 1% FOR THE NEXT SIX YEARS AND 0% THEREAFTER.
SO IF YOU LOOK AT THE NEXT EIGHT YEARS, WE'RE ASSUMING 6% A TOTAL OF 6% GROWTH OVER THE NEXT EIGHT YEARS.
YOU CAN SEE VERY, VERY CONSERVATIVE.
UM, IF YOU LOOK AT, UM, WE COULD POTENTIALLY BE, IF WE STAY ON THE RHYTHM, UM, OF, UH, OUR CURRENT BOND PROGRAM, PACE A 26 BOND PROGRAM, UH, TARGET, UH, UH, UM, UH, PROGRAM FOR US WOULD BE ABOUT, UH, $20 MILLION, WE THINK, UH, UH, THAT WOULD BE, UM, ABOUT 200 OF THE $250 MILLION CAPACITY, UM, THAT, UH, WE BELIEVE WE HAVE TODAY.
UM, IT WOULD BE ANOTHER SERIAL SALE.
IT WOULD BE A NO TAX RATE INCREASE, UH, UH, SALE AGAIN.
UM, UM, AND OF COURSE, IF WE MOVE FORWARD, IF YOU MOVE FORWARD WITH THE 26 BOND PROGRAM AND PUT THAT TOWARDS, UH, BEFORE THE VOTERS, THE FIRST SALE WOULD BE A SERIES 27.
SO YOU CAN SEE HOW WE WOULD CONTINUE ON WRAPPING UP A 21 BOND PROGRAM WITH SERIES 26 AND MOVING RIGHT INTO A WHOLE NOTHER SERIES OF, UH, PROJECTS.
UM, THIS SHOULD ALSO LOOK FAMILIAR TO YOU.
WE'VE SHARED THIS PREVIOUSLY, BUT THIS IS JUST A LITTLE BIT ABOUT THE PROCESS THAT WE GO THROUGH, UM, TO DEVELOP A BOND PROGRAM.
UH, OBVIOUSLY, UH, WE HAVE THE KICKOFF.
UH, THERE'LL BE A LOT OF DISCUSSION AROUND THE PROPOSITION, UM, UM, THE COMPOSITION OF THE DIFFERENT PROPOSITIONS AND EVEN THE PROPOSITIONS THEMSELVES.
HOWEVER, I THINK THERE'LL BE A LOT LESS DISCUSSION THAN THE YEARS PAST.
UH, YOU HAVE MORE THAN AMPLE PROJECTS
AND SO, UM, THE STUDY WORK ON OUR PART, QUITE FRANKLY, WILL BE A LITTLE BIT LIGHTER AS A RESULT OF THAT.
NOW, THAT'S BECAUSE WE'VE BEEN ABOUT THAT STUDY WORK FOR SEVERAL YEARS CONSECUTIVELY NOW DATING ALL THE WAY BACK TO THE PARKS MASTER PLAN AND THE, THE ACTIVE TRANSPORTATION PLAN.
UM, BUT, UH, WE'VE, WE'VE REALLY ACCOMPLISHED A LOT OF THAT STUDY WORK.
UM, YOU SEE, UM, SUBSEQUENT TO, UH, THE REVIEW OF THE STUDY WORK, THE PROPOSITION COMPOSITION, THE CONFIRMATION THAT YOU WOULD CALL THE ELECTION, IF YOU WANNA CALL AN ELECTION FOR MAY, YOU HAVE TO DO THAT BY BLESS YOU, UH, BY FEBRUARY.
AND IF YOU WANNA CALL AN ELECTION FOR NOVEMBER, YOU HAVE TO DO THAT BY AUGUST, GENERALLY SPEAKING.
UM, SO WHERE ARE WE AT ON THOSE, UH, IN TERMS OF TIMING? UM, WE FEEL WE'RE IN VERY GOOD POSITION WHEN, UM, YOU LOOK AT THE APPROPRIATE AMOUNT OF TIME THAT WE WOULD NEED TO CONDUCT THE ASSESSMENTS AND STUDIES NEEDED.
UM, YOU SEE THE COMPLETED, OUR STAFF IS CURRENTLY REFRESHING OUR STREETS AND ALLEYS AND SIDEWALKS.
I MEAN, SO WE DID, UM, WE, WE, SO IN 20 20, 20 20, EARLY 2021, WE DID A CITYWIDE STREET ASSESSMENT.
I THINK WE, UH, IF I RECALL, WE, UH, IDENTIFIED JUST SHY OF ABOUT A BILLION DOLLARS WORTH OF STREET PROJECTS.
UH, WE WERE ABLE TO, UH, ACCOMPLISH, UM, ABOUT 180 OR SO MILLION DOLLARS OF THAT, REMEMBER, I'M SORRY, ABOUT A HUNDRED MILLION DOLLARS OF STREETS, BUT ABOUT 10 MILLION OF THAT WAS ACTUALLY FOR TRANSPORTATION PURPOSES.
AND SO WE HAVE ANOTHER, WE HAVE A HIT LIST OF PROJECTS THAT WE BELIEVE ARE PRIME.
UM, THE REFRESH WILL BE ALL ABOUT GOING BACK AND MAKING SURE THAT WE UNDERSTAND THE SUB-GRADE INFRASTRUCTURE, UM, AND THEN LOOKING AT THAT NEXT TIER PROJECTS TO
[01:25:01]
SEE IF THEY, UH, YOU KNOW, THAT SECOND TIER, IF YOU WILL, TO SEE IF THEY HAVE DETERIORATED MAYBE, UH, EXPONENTIALLY OR QUICKER THAN WE IMAGINED, AND MAYBE THEY SHOULD BE MOVED UP.SO THIS IS SOMETHING THAT, UNLIKE THE 21 ASSESSMENT, WHICH WAS A, UH, THIRD PARTY THAT WE BROUGHT IN, AND QUITE A COSTLY EX EXERCISE, WE WANNA LEVERAGE THAT WORK THAT WAS ALREADY DONE AND DO THAT IN HOUSE.
WE'LL DO THAT WITH SIDEWALKS AS WELL.
UM, UH, THE TRAFFIC COMMUNICATIONS, UM, UH, PLAN, UH, THAT'S CURRENTLY IN PROGRESS, THE A DA TRANSITION PLAN VERY EARLY ON IN THAT PARTICULAR PLAN.
SO, UH, BUT THERE COULD BE SOME I, UH, UH, ITEMS IDENTIFIED, BUT THERE'LL BE MANY ITEMS IN THAT PLAN THAT WE WILL ACCOMPLISH THROUGH OTHER PROJECTS, LIKE STREET IMPROVEMENT PROJECTS, RIGHT? UM, OR SIDEWALKS.
UM, AND THEN YOU SEE SOME OTHERS THAT, UM, THAT ARE IN PROGRESS.
AND THEN, UH, ALSO A FACILITIES MASTER PLAN THAT WE REALLY WANTED TO, UM, WE REALLY WANTED TO, TO, UM, GET STARTED.
UM, SO ONE OF THE THINGS, UH, AND THERE'S TWO SCHOOLS OF THOUGHT, AND I DON'T THINK EITHER ONE'S WRONG, BUT I'M GONNA PRESENT 'EM BOTH TO YOU
SO AS YOU LOOK AT WHEN YOU MIGHT WANNA CALL A BOND PROGRAM, UM, IT'S ALWAYS HELPFUL TO LOOK AT WHAT ELSE IS GONNA BE ON THE BALLOT.
UM, IF, IF YOU LOOK AT 2026, UH, MAY OF 26, YOU SEE THAT RISD, UH, WILL HAVE, UH, UM, UH, SEVERAL TRUSTEE POSITIONS THAT WILL BE UP FOR REELECTION, AS WELL AS A POTENTIAL BOND PROGRAM, UH, THAT WILL BE UP AS WELL.
UH, DALLAS, UH, COUNTY COMMUNITY COLLEGE, UH, WILL ALSO HAVE, UH, TWO TRUSTEES, BUT THAT'S REALLY IT.
SO THE ADVANTAGE OF A MAY ELECTION WOULD BE THAT, UH, LOCALLY HERE, THERE COULD BE HYPER ATTENTION PAID TO THE BOND PROGRAM, AND THERE COULD BE A LOT OF ATTENTION, UH, AND, AND, AND, UH, CAPACITY ON A VOTER'S, UH, BY THE VOTERS TO REALLY, UH, EDUCATE THEMSELVES AND REALLY BECOME AWARE OF WHAT'S HAPPENING.
UH, IN NOVEMBER, YOU SEE A MUCH MORE ACTIVE BALLOT, UM, YOU KNOW, A PRO, THERE MIGHT BE, YOU MIGHT EXPECT A HIGHER LEVEL OF TURNOUT, BUT AGAIN, THERE'D BE A LOT OF NOISE, PARTICULARLY IF YOU LOOK AT A COUPLE OF THOSE ELECTIONS.
THERE'D BE A LOT OF NOISE COMPETING WITH, UM, THE BOND PROGRAM.
AND, AND SO, YOU KNOW, PERHAPS IT WOULD BE DIFF MORE DIFFICULT OR, OR THE PUBLIC WOULD BE LESS, UM, ENGAGED OR, OR EDUCATED ABOUT THE BOND PROGRAM.
AGAIN, NEITHER ONE OF THESE ARE RIGHT.
THESE ARE JUST PROS AND CONS OF EACH.
UM, I, UH, I, I SAY THAT TO SAY I FEEL IT, UM, INCUMBENT UPON UPON ME TO BRING THIS TO YOUR ATTENTION.
UM, YOU, UH, UH, ABSOLUTELY WILL DECIDE WHEN WE WILL HAVE A CHARTER ELECTION AND A BOND PROGRAM ELECTION.
THIS IS JUST CONSIDERATIONS IF YOU, IF AND WHEN YOU DECIDE, UM, THAT, UH, YOU WANT TO CALL, UH, A BOND PROGRAM, PERHAPS IN 2026, UM, THERE MAY BE AN OPPORTUNITY TO COORDINATE THESE TWO ELECTIONS TO TRY TOCE ACHIEVE WHAT WE ESTIMATE WOULD BE ABOUT $175,000 IN SAVINGS.
UM, SO IF YOU WISH TO HOLD THE BOND PROGRAM ELECTION IN MAY OF 2026, UM, IN, IN REALITY, ALL YOU WOULD HAVE TO DO IS SLIDE THE CHARTER ELECTION, UH, DELAY THAT BY ABOUT SIX MONTHS, AND YOU COULD HAVE BOTH OF THOSE ELECTIONS ON WITH JUST OUR ISD AND DALLAS COUNTY COMMUNITY COLLEGE THAT WE THINK WOULD SAVE US ABOUT A HUNDRED SEVENTY SIX, A HUNDRED SEVENTY $5,000.
THE CHARTER ELECTION IS GONNA BE WHAT IT IS.
IF WE'RE ADDING FOUR PROPOSITIONS TO THAT BALLOT, UH, IT'S A BI, IT'S A SUBSTANTIAL SAVINGS COMPARED TO HAVING TWO DIFFERENT ELECTIONS.
IF YOU WISH TO CALL, UH, IF YOU WISH TO PROCEED WITH THE CHARTER AMENDMENT ELECTION IN NOVEMBER OF 2025, AND IF YOU WISH TO HOLD THE BOND PROGRAM ELECTION IN MAY, THEN WE NEED TO GO BACK AND WE NEED TO ADD ABOUT $175,000 TO THIS PROPOSED BUDGET UNDER GENERAL GOVERNMENT, BECAUSE WE DON'T HAVE TWO ELECTIONS PLUGGED IN TODAY.
SO AGAIN, THAT'S A CONSIDERATION.
IF YOU WISH TO HOLD THE BOND PROGRAM ELECTION IN NOVEMBER, THAT'S ABSOLUTELY FINE AS WELL.
AND WE WOULD ADDRESS THAT WITH THE FY 27, UH, PROPOSED BUDGET.
AND SO, UM, AGAIN, JUST LIKE THE PROS AND CONS OF THE PRIOR SIDE, I DON'T THINK THERE'S A RIGHT OR WRONG ANSWER.
EVERYBODY HAS THEIR OWN FEELING ON THAT, BUT I FELT IT IMPORTANT TO AT LEAST PRESENT THIS, UH, TO YOU, UH, FOR YOUR CONSIDERATION.
I'M NOT ASKING YOU TO MAKE A DECISION TONIGHT.
UM, OBVIOUSLY YOU DO HAVE, UM, UH, ON YOUR AGENDA NEXT WEEK.
UM, YOU DO HAVE THE, UM, THE ACTION TO CALL THE ELECTION, UH, FOR THE CHARTER IN NOVEMBER, IF THAT'S WHAT YOU CHOOSE TO DO.
SO, REALLY WANTED TO, TO KIND OF PUT THIS OUT THERE IN FRONT OF YOU AND, UH, LET YOU KIND OF, KIND OF GIVE SOME CONSIDERATION TO IT.
UM, WE COULD HAVE AN ITEM NEXT WEEK IF YOU WANTED TO DISCUSS THIS FURTHER NEXT WEEK, WE CAN HAVE AN ITEM ON THE AGENDA.
AND JUST BECAUSE WE PUT THAT ACTION TO CALL THE, THE ELECTION ON THE AGENDA, DOESN'T MEAN YOU HAVE TO DO THAT.
SO, IF YOU WANTED TO THINK ABOUT THIS FOR THIS WEEK AND HAVE A DISCUSSION NEXT WEEK, THAT'S ABSOLUTELY FINE AS WELL.
I'M NOT ASKING YOU TO MAKE A DECISION TONIGHT, JUST, UH, AGAIN, IN, IN TIMES LIKE THIS, THE POTENTIAL FOR COMBINING THE ELECTION, IT'S A POTENTIALLY SAVING $175,000.
I, I, IT IS JUST INCUMBENT UPON ME TO AT LEAST BRING UP THE ISSUE, UH, BEFORE CALLING ON A COUPLE COUNCIL MEMBERS.
UH, I, I THINK AT ONE POINT YOU MAY HAVE MISSPOKE, UH, UH, IN INADVERTENTLY, AND I THINK YOU SAID 20 MILLION INSTEAD OF 200 MILLION OUT OF THE TWO 50, BUT YOU DID INTEND TO SAY 200 MILLION, CORRECT? I DID, YES.
[01:30:01]
I, I JUST WANTED TO MAKE SURE THAT, UH, THAT THAT WAS, THAT WAS HOT AND CAPTURED AND ALL THAT.UH, LET'S GO AHEAD AND GO WITH YOU, UH, COUNCIL MEMBER SSO.
UH, I JUST WANTED TO SAY THAT I THINK IT'S IMPORTANT THAT WE DISCUSS BEFORE DECIDING.
SO I WOULD PROPOSE BRING IT IN FOR DISCUSSION MM-HMM
YEAH, I'M FIND HAVING A BROADER DISCUSSION ON THAT TOO.
I THINK, UM, MY QUESTION IS, YOU KNOW, WE SELL THE 64 MILLION FROM THE 21 BOND PROGRAM.
DOES THAT TAKE US THROUGH TO THE NEXT BUDGET CYCLE? SO THAT'S ALL THE WAY THROUGH 26.
SO, YOU KNOW, I GUESS I'M TRYING TO FIGURE OUT WHEN WOULD WE SELL THE FIRST PART OF, UH, IT, IT WOULD BE SERIES 27, SO, SO WE WOULD SELL IT IN THE 27 BUDGET.
REGARDLESS IF, IF YOU, SO THAT'S A, THAT'S A GREAT QUESTION.
I, I THINK I ACTUALLY INADVERTENTLY OVER OVERLOOKED THAT.
BUT IF YOU, IF YOU HOLD AN ELECTION IN MAY OR NOVEMBER OF 26, IT'S, IT'S KIND OF, UH, MOOT WITH RESPECT TO THIS.
THE FIRST SALE WOULD BE IN THE SPRING OF 27, BE SERIES 27, EITHER WAY.
AND WHAT, WHAT WOULD OUR, AND THIS CAN BE PART OF OUR BROADER DISCUSSION, BUT WHAT WOULD OUR COST BE GIVEN WE'RE GONNA HAVE A NOVEMBER ELECTION ANYWAY.
DO WE HAVE ANY COSTS OR IS THAT ALL COUNTIES, SINCE WE DON'T HAVE ANYTHING ON THAT PARTICULAR BALLOT NOW IN NOVEMBER OF 26, IF WE DON'T HAVE AN ELECTION, THEN WE DON'T HAVE ANY, ANY COST ASSOCIATED WITH IT.
I GUESS MY, BEFORE WE HAVE A BROADER DISCUSSION, I THINK MY INITIAL INCLINATION WOULD BE TO DO THAT IN NOVEMBER OF 26 IN BUDGET FOR IT NEXT YEAR.
I LIKE THE IDEA OF ENERGY, UH, SORT OF THE, THE SYNERGY OF THE SAVINGS MM-HMM
IF WE WERE TO TRY AND COMBINE THOSE FOR SURE.
UM, BUT YEAH, I THINK MY, MY INITIAL KNEE JERK REACTION WITHOUT A BROADER DISCUSSION IS THAT IT WOULD MAKE SENSE TO DO THAT IN NOVEMBER AND BUDGET FOR IT NEXT YEAR, JUST BECAUSE WE HAVE ALL THESE PROJECTS TO FOCUS ON.
WE HAVE A CHARTER THAT, YOU KNOW, WE SPEND A LOT OF TIME TALKING ABOUT.
SO ANYWAY, THAT, THAT'S MY INITIAL, UM, SORT OF THOUGHT ON THAT, AND I DON'T WANT US TO SORT OF, UH, GET BOTTLENECKED IN DECIDING TOO QUICKLY ABOUT WHAT THESE PROJECTS NEED TO BE.
UM, THERE'S SOME OF THESE ARE STILL IN PROGRESS.
AND SO AGAIN, THAT'S MY SORT OF INITIAL REACTION TO, TO THAT, THOUGH I DO LOVE THE SOUND OF SAVING $175,000, UM, BUT THAT'S SORT OF WHERE I AM AT THE MOMENT.
SO MY INITIAL REACTION, AND I DO WANT TO HAVE A FURTHER CONVERSATION ABOUT IT NEXT WEEK.
SO REALLY MY QUESTION IS, WHAT IS THAT PROCESS? TALK ABOUT, DOES IT HAVE IT, THAT DISCUSSION HAVE ITS OWN, I GUESS, PUBLIC INPUT SESSION? DOES IT HAVE ITS OWN LINE? WHAT IS THE PROCESS TO HAVE REGARDING THE BONDS ITSELF? WHAT'S THAT? LIKE THE, THE BOND ELEMENTS, IS THAT WHAT YOU'RE TALKING ABOUT? THE COMBINING THEM ARE SEPARATE.
WHAT'S THAT DISCUSSION LOOK LIKE? IS THAT I'LL, I'LL, IF IT'S AGREEABLE TO THE COUNCIL, I'LL PUT IT ON AS A, UH, WORK SESSION, UH, TOPIC, AND THEN THE, ANYBODY WHO WANTS TO SPEAK ON AN AGENDA ITEM CAN DO THAT IN ADVANCE OF THE MEETING.
SO THEY WOULD'VE AN OPPORTUNITY.
UH, INITIAL, SINCE COUNCIL JUST SHARED HER INITIAL THOUGHT, MY INITIAL THOUGHT IS KEEPING 'EM SEPARATE.
ALTHOUGH I LOVED THE IDEA OF SAVING MONEY, AND THAT IS A BIG NUMBER.
WE KNOW WE COULD USE EVERY, EVERY FRACTION WE COULD GET.
BUT, UM, AT THE SAME TIME, I, I THINK THERE'S SOMETHING TO BE SAID ABOUT THE PROCESS OF CHARTER REVIEW AND HOW SPECIAL THAT IS.
UM, BECAUSE IT DOESN'T HAPPEN VERY OFTEN.
I THINK IT'S DESERVES OWN STANDALONE.
SO, UM, JUST BECAUSE OF THE, HOW LONG IT WAS, AND ALTHOUGH, YOU KNOW, IT'S PRETTY STANDARD.
A LOT OF THE STUFF THAT'S CAME OUT OF IT, I, I THINK IT NEEDS, IT DESERVES ITS OWN STANDALONE.
[C. CONSIDER SETTING A PUBLIC HEARING ON SEPTEMBER 8, 2025, ON THE PROPOSED TAX RATE FOR FISCAL YEAR 2025-2026. ]
MAGNER, UH, UH, AS IT RELATES TO, UH, ITEM C ON OUR AGENDA TODAY, UH, THAT DOES NOT CHANGE IF WE DO WANT HAVE A SEPARATE CONVERSATION WITH US, OR DOES IT? NO, SIR.SO WE CAN CONTINUE TO MOVE ON.
COUNCIL MEMBER CORCORAN, I'M SORRY, THIS IS SOMEWHAT UNRELATED.
I JUST WANTED TO, TO ASK THE CAPACITY ESTIMATE OF 250 MILLION.
I JUST WANT TO MAKE SURE I UNDERSTOOD THAT.
THAT IS THE CAPACITY FOR A FUTURE BOND PROGRAM.
IT TAKES INTO ACCOUNT THE FACT ALL THE DEBT THAT WE'VE ALREADY PASSED FOR OTHER BOND PROGRAMS, RIGHT? MM-HMM
THAT WAS THE ZERO DO OR THE ZERO INCREASE CAPACITY IS WHAT THAT ESTIMATE IS.
ANY OTHER QUESTIONS? VERY GOOD.
WELL, MAYOR, WE'RE WIND IT DOWN HERE WITH SOME FINAL THOUGHTS.
THIS IS A CHART THAT WE ALWAYS LIKE TO SHOW.
UH, IT INCLUDES, UH, AND PROVIDES A, UH, PICTURE OF, UH, EVERYTHING THAT WE PROPOSED, UH, AS IT RELATES TO THE IMPACT ON THE TYPICAL TAXPAYER.
UM, YOU SEE THE, UM, UH, ANNUAL DOLLAR CHANGE IN THE, UH, SECOND, UH, COLUMN FROM THE LEFT, I'M SORRY, FROM THE RIGHT.
UM, AND THEN SOME NOTES, UH, ABOUT THE ASSUMPTIONS THAT WERE MADE ON HOW WE ARRIVED AT AN AVERAGE OR TYPICAL TAXPAYER.
UH, BUT BOTTOM LINE IS, IS, IS THE TYPICAL TAXPAYER, UH, THROUGH ALL THE DIFFERENT, UM, CHANGES, UH, WE PROPOSED TO, YOU WOULD EXPECT TO PAY $237 MORE, UM, FOR TAXES, WATER CHARGERS, SEWER CHARGERS, DRAINAGE FEE, AND RESIDENTIAL SOLID WASTE THAN THEY DID THE YEAR BEFORE.
UM, IN TERMS OF NEXT STEPS, UM, WE'VE, UH, AS WE'VE,
[01:35:01]
AS WE'VE TALKED ABOUT, UH, TONIGHT, UH, WE WOULD HAVE YOU, UM, UH, MAKE A, UH, MAKE A MOTION, UH, TO, UH, UH, CALL A PUBLIC HEARING, UH, FOR SEPTEMBER 8TH, UH, CONCERNING THE TAX RATE ITSELF.UH, ANOTHER PUBLIC HEARING WOULD BE SET FOR SEPTEMBER 15 ON THE PROPOSED BUDGET.
UM, I'LL, AS, UH, WE TALKED ABOUT PREVIOUSLY, I'LL, UM, FILE THE BUDGET ON THE 15TH AND PRESENT IT TO YOU ON THE 18TH, TAKING ALL OF THE INPUT THAT YOU PROVIDED, AS WELL AS, UM, UM, UM, SOME OF THE EARLIER CONSIDERATIONS TONIGHT AND REFINING THOSE.
UM, AND AGAIN, YOU'LL, YOU'LL SEE THAT THE, THE, UH, THE HEARINGS ON THE EIGHTH AND THE 15TH AS WELL.
UH, WE WANTED TO PROVIDE YOU THIS SLIDE.
THIS IS, UH, JUST ENTIRELY, UM, UM, THIS IS JUST ENTIRELY, UM, TO PROVIDE YOU WITH MAXIMUM FLEXIBILITY.
UH, YOU SEE IN THE BLUE THERE IS THE MOTION.
UH, AGAIN, UM, YOU KNOW, I'M GONNA RECOMMEND THAT YOU, THAT OUR BUDGET IS PREDICATED ON THE CURRENT TAX RATE.
I THINK WE'VE BEEN ABLE TO RESPOND TO THE OUTSTANDING ISSUES THAT WERE BROUGHT UP LAST NIGHT AND TONIGHT AND KEEP WITH THE, UH, EXISTING TAX RATE.
THAT WOULD BE OUR RECOMMENDATION.
UM, THAT'S THE RECOMMENDATION.
UH, THE FIRST MOTION IS ON THE TAX RATE ITSELF, AND THEN THE SECOND MOTION YOU SEE THERE IS ONLY PROPOSED BUDGET.
SO MAYOR, THE ONLY, UH, UH, THAT WOULD BE THE FINAL ACTION THAT, UH, WE WOULD ASK YOU TO TAKE AND CONSIDER, UH, AFTER WE HAVE ANY, ANSWER, ANY QUESTIONS AND, AND HAVE ANY DISCUSSION THAT YOU'D LIKE TO HAVE TONIGHT.
SO, APPRECIATE VERY MUCH A CHANCE TO BRIEF YOU.
AND I WANNA SAY THANKS TO OUR WHOLE TEAM, ESPECIALLY BOB.
BOB IS, UH, BOB HAS BEEN, UH, A SOLO BUDGET OFFICE, UH, THIS TIME AROUND AND HE'S DONE AN AWESOME JOB, UH, NOT JUST, UH, DOING THE NUMBERS, WHICH HE'S ALWAYS BEEN GOOD AT.
HE'S ALSO DONE A GREAT JOB WITH GRAPHICS AND POWERPOINTS AND ALL THAT KIND OF STUFF.
SO APPRECIATE ALL THE EXTRA WORK.
AND THANK YOU TEAM FOR EVERYTHING YOU'VE DONE.
COUNCIL MEMBER DORIAN, I JUST WANT TO ASK, DO WE, UH, DO I NEED TO MAKE A RECOMMENDATION TO MOVE? UH, WE DO.
AND THERE'S A TEMPLATE RIGHT THERE ON THE WHITE BOARD FOR US.
YES, I, I'D BE HAPPY TO DO THAT.
I MOVE TO SET A PUBLIC HEARING DATE OF SEPTEMBER 8TH, 2025 FOR THE PROPOSED TAX RATE OF 0.54218 PER 100 VALUATION OF FISCAL YEAR 20 25, 20 26.
ALRIGHT, THERE IS A MOTION COUNCIL MEMBER SHASU, I SECOND THAT.
ALRIGHT, WE HAVE A MOTION TO SECOND ANY DISCUSSION ON THE MOTION? ALRIGHT, IF THERE IS NONE.
ALL IN FAVOR? ALL OPPOSED? ALRIGHT.
SO WE'VE GOT, UH, A SEVEN ZERO VOTE.
UH, IS HE ALLOWED TO, UH, VOTE ON, ON THE, UH, HIS CAMERA ON HE CAN VOTE.
I'VE NO, NO, YOU MAY NEED TO BE, YOU MAY NEED TO BE ON THE CAMERA.
I THINK, UH, IN ORDER TO BE, UH, I THOUGHT I WAS ON THE CAMERA.
AND SO OFFICIALLY WE NEED TO CALL THAT A SIX OH VOTE, RIGHT? SINCE YOU'RE NOT ABLE TO SEE HIM.
UH, MAYOR PRO TEM, SORRY ABOUT THAT.
FOR WHATEVER REASON, THE VIDEO WAS OFF.
SO WE'LL TAKE THAT AS A SIX TO ZERO VOTE WITH, UM, MAYOR PRO TEM HUTCHIN RIDER, UH, BEING ABSENT FOR THAT PARTICULAR VOTE.
[D. CONSIDER SETTING A PUBLIC HEARING ON SEPTEMBER 15, 2025, FOR THE PROPOSED FISCAL YEAR 2025-2026 RICHARDSON MUNICIPAL BUDGET. ]
DO WE HAVE ALSO A SECOND MOTION, UH, MR. MAGNER THAT WE SHOULD BE ENTERTAINING? YES, SIR.MAY BE THE, UH, THE SECOND, UH, BULLET THERE.
AND I SEE, UH, COUNCIL MEMBER, DORIAN, GO AHEAD.
UM, YES, I MOVED TO SET A PUBLIC HEARING DATE OF SEPTEMBER 15TH, 2025 FOR THE PROPOSED BUDGET FOR PHYSICAL YEAR 2025 AND 2026.
ALRIGHT, SO WE HAVE A MOTION AND A SECOND.
ANY DISCUSSION ON THE MOTION? ALL RIGHT.
ALL IN FAVOR? ANY OPPOSED? ALRIGHT, SO THAT'S MEAN.
YOU ALL HEAR ME? I'M, I'M TRYING TO VOTE.
UM, WE CAN, WE CAN DEFINITELY HEAR YOU, UH, MAYOR PRO TEM HUTCHIN RIDER, BUT FOR WHATEVER, OH, THERE WE ARE.
YOU WANNA RAISE YOUR HAND AND JUST SHOW US THAT YOU'RE VOTING FOR THIS ONE? WONDERFUL.
THIS ONE PASSES US SEVEN TO ZERO.
I TRIED TO VOTE FOR BOTH OF THEM.
WE, WE'VE GOT IT ON THE RECORD.
I THINK THAT YOU TRIED, BUT THE FIRST TIME YOU WERE NOT ON VIDEO.
SO WE'VE GOT A SEVEN ZERO VOTE, UM, INCLUDING, UH, MAYOR PRO, TAMM, HUTCHIN, WRITER
UM, IF THERE IS, UH, ANYTHING ELSE, UH, COUNCIL MEMBER, DOREEN, DO YOU HAVE ANY OTHER? NO, YOU'RE GOOD.
IF THERE'S NOTHING ELSE, UM, NO FURTHER BUSINESS.
THIS MEETING IS ADJOURNED AT 7:40 PM.