[Budget Townhall on June 10, 2025.]
[00:00:02]
OF COURSE, ALL OF OUR RESIDENTS ARE ESTEEMED GUESTS.
AND SO THIS IS OUR ANNUAL TOWN HALL BUDGET MEETING.
THIS IS ACTUALLY THE FIRST OF TWO THAT WE WILL DO DURING THE BUDGET PROCESS.
THIS IS A MORE TRADITIONAL ONE. LATER ON IN JULY, WE WILL HAVE A NONTRADITIONAL ONE, AND IT'S TENTATIVELY CALLED BUDGET AND BEVERAGES. SEPTEMBER. OKAY. MY BAD. SEPTEMBER.
SO THAT'S WHY WE GOT OUR GREAT STAFF HERE TO CORRECT ME.
SO WE HAVE A BUDGET AND BEVERAGES IN SEPTEMBER.
THAT'S AN OVERALL VIEW OF THE BUDGET. NOW I WILL TELL YOU IT'S A HIGH LEVEL VIEW.
AND THEN WE'RE JUST GOING TO OPEN UP THE Q&A FOR THE PEOPLE LISTENING ONLINE OR WATCHING ONLINE.
WE CAN DEFINITELY HAVE QUESTIONS FROM THE AUDIENCE, BUT IF YOU HAVE A QUESTION ONLINE, YOU CAN TYPE IT INTO THE CHAT AND MISS ESTHER OVER HERE WILL READ IT. AND THEN THAT WAY EVERYBODY WILL KNOW WHAT THE QUESTIONS ARE ASKED.
IF WE DO GET TO THE POINT WHERE WE DON'T HAVE ANY MORE QUESTIONS, THEN WE WILL WRAP UP THE MEETING. HOWEVER, THIS PRESENTATION WILL BE A VIDEO ON DEMAND SO ANYBODY CAN GO WATCH IT LATER. AND OF COURSE, IF YOU ARE WATCHING THIS LATER, NOT LIVE, YOU OF COURSE CAN ASK QUESTIONS THROUGH THE CHAT OR SEND US AN EMAIL. BUT WE'LL TALK ABOUT ALL THAT IN JUST A SECOND. SO WITH THAT, WE WILL TURN IT OVER TO THE VIDEO.
I'M MAYOR JEFF BICKERSTAFF. HEY, I THINK I THINK WE'RE READY NOW.
WE ALWAYS HAD TO HAVE A LITTLE EXCITEMENT. THAT'S WHAT WE DO.
SO OKAY WITH THAT, LET'S WATCH THE VIDEO. HELLO, SEXY.
OVER THE NEXT FEW MINUTES, WE'RE GOING TO LOOK AT WHERE THE MONEY COMES FROM, HOW WE PUT IT TO WORK, AND MOST IMPORTANTLY, HOW YOU CAN BE A PART OF THE PROCESS.
WHEN YOU UNDERSTAND THE BUDGET, YOU CAN SEE EXACTLY HOW YOUR TAX DOLLARS HELP MAKE SACHSE A VIBRANT COMMUNITY THAT OFFERS EXCEPTIONAL OPPORTUNITIES FOR ALL TO LIVE, WORK, AND PLAY. THINK OF A BUDGET AS OUR FINANCIAL GAME PLAN FOR OUR FISCAL YEAR, WHICH BEGINS ON OCTOBER 1ST.
IT DOES TWO BIG JOBS AT ONCE. FIRST, IT KEEPS DAY TO DAY SERVICES RUNNING POLICE PATROLS, LIBRARY PROGRAMS, WATER TREATMENT, STREET REPAIRS, YOU NAME IT.
SECOND, IT MAPS OUR LONGER TERM INVESTMENTS SO WE CAN WIDEN BUSY ROADS, BUILD NEW PARK AMENITIES, AND REPLACE AGING EQUIPMENT BEFORE PROBLEMS ARISE.
NOW LET'S TALK ABOUT REVENUE. WHERE THE MONEY COMES FROM.
MOST OF THE CITY'S REVENUE COMES FROM PROPERTY TAXES.
ONCE THE CITY RECEIVES ITS SHARE, WE SEPARATED IT INTO TWO BUCKETS.
SALES TAX IS OUR SECOND LARGEST SOURCE OF INCOME TAXES.
TOTAL RATE IS 8.25%. 6.25% GOES TO THE STATE OF TEXAS.
OF THE 2% THAT REMAINS IN SACHSE, 61% SUPPORTS THE GENERAL FUND, ONE HALF PERCENT FUELS THE ECONOMIC DEVELOPMENT CORPORATION, ONE QUARTER PERCENT SUPPORTS THE MUNICIPAL DEVELOPMENT DISTRICT, AND ONE QUARTER PERCENT IS SET ASIDE FOR STREET MAINTENANCE.
EARLIER THIS YEAR, SACHSE VOTERS RENEWED THE STREET MAINTENANCE SALES TAX IN THE MAY ELECTION, ENSURING THAT DEDICATED FUNDING FOR PAVEMENT PRESERVATION CONTINUES WITHOUT INTERRUPTION.
SO WHERE DOES THE MONEY GO? OUR LARGEST SLICE FUNDS CAPITAL IMPROVEMENT PROJECTS.
PUBLIC WORKS IS OUR NEXT MAJOR SPENDING CATEGORY, MAINTAINING OUR CITY STREETS, TRAFFIC SIGNALS, AND EVERY DROP OF WATER THAT FLOWS INTO HOMES AND BUSINESSES IN SACHSE LEISURE SERVICES.
LOOK AFTER THE PARKS YOU ENJOY, THE SENIOR ACTIVITIES THAT KEEP OUR OLDER RESIDENTS CONNECTED,
[00:05:03]
AND THE LIBRARIES YEAR ROUND. CALENDAR OF PROGRAMS. GENERAL GOVERNMENT MAY SOUND A BIT ABSTRACT, BUT IT'S WHAT KEEPS OUR CUSTOMER SERVICE COUNTERS STAFFED, ELECTIONS RUNNING SMOOTHLY, BILLS PAID ON TIME, AND OUR CYBERSECURITY WALLS STRONG.EVERY SPENDING DECISION IS MEASURED AGAINST OUR VISION THAT SACHSE IS A VIBRANT COMMUNITY THAT OFFERS EXCEPTIONAL OPPORTUNITIES FOR ALL TO LIVE, WORK AND PLAY. ENSURING EACH DOLLAR TRULY BENEFITS OUR RESIDENTS.
THE BUDGET ISN'T WRITTEN OVERNIGHT. BUILDING THE BUDGET IS A MONTHS LONG PROCESS THAT BEGINS EARLY IN THE CALENDAR YEAR, WHEN EACH DEPARTMENT BEGINS SUBMITTING THEIR REQUEST FOR THE NEXT FISCAL YEAR.
RESIDENTS CAN CONTEST THEIR PROPERTY APPRAISALS, SO WE HAD TO BE PREPARED FOR HOW THOSE EARLY REVENUE ESTIMATES MAY SHIFT ONCE WE RECEIVE CERTIFIED VALUES FROM THE APPRAISAL DISTRICT AT THE END OF JULY.
WE MATCH THEM TO ONE OF THE MODELS WE PREPARED TO CREATE THE PRELIMINARY BUDGET.
AT THE END OF JULY, THE CITY MANAGER PRESENTS A PRELIMINARY BUDGET ALONG WITH THE LONG RANGE FINANCIAL PLAN TO THE CITY COUNCIL AT A BUDGET WORKSHOP THAT'S OPEN TO THE PUBLIC, GIVING THE COUNCIL A FIRST LOOK AND THE OPPORTUNITY TO ASK QUESTIONS TO PROVIDE FEEDBACK BY AUGUST 15TH.
A DEADLINE SET IN OUR CITY CHARTER. THE CITY MANAGER DELIVERS THE FORMAL PROPOSED BUDGET TO THE CITY COUNCIL AND IS POSTED ONLINE, AND A PHYSICAL COPY IS AVAILABLE AT THE LIBRARY FOR RESIDENTS TO REVIEW.
DURING SEPTEMBER, WE HOLD PUBLIC HEARINGS ON THE BUDGET AND, IF NEEDED, ON THE TAX RATE.
YOUR FEEDBACK SHAPED OUR PRIORITIES. WE INVITE YOU TO ATTEND OUR BUDGET TOWN HALLS, WORKSHOPS AND MEETINGS, EITHER IN PERSON OR LIVE ONLINE, OR SIMPLY SEND YOUR FEEDBACK TO BUDGET AT CITYOFSACHSE.COM/BUDGET.
WHETHER IT'S A QUESTION, A CONCERN OR A NEW IDEA, YOUR MESSAGE WILL GO STRAIGHT TO OUR FINANCE TEAM.
YOU CAN ALSO FOLLOW THE CITY ON FACEBOOK, INSTAGRAM OR X FOR TIMELY UPDATES ALONG THE WAY.
THANK YOU FOR TAKING THE TIME TO LEARN HOW YOUR CITY BUDGET WORKS.
I LOOK FORWARD TO HEARING YOUR FEEDBACK ABOUT WHAT MATTERS MOST TO YOU.
LET'S ALL CONTINUE TO WORK TOGETHER TO MAKE SACHSE A VIBRANT COMMUNITY THAT OFFERS EXCEPTIONAL OPPORTUNITIES FOR ALL TO LIVE, WORK AND PLAY. ALL RIGHT, WELL, HOPEFULLY THAT GAVE EVERYONE A HIGH LEVEL OVERVIEW OF HOW THE BUDGET PROCESS WORKS.
MR. BALDWIN, DAVID BALDWIN, OUR FINANCE GURU, AND HIS STAFF, WE APPRECIATE HIM BEING HERE.
AND ALSO, TO LOGAN THATCHER, WHO IS OUR ASSISTANT TO THE CITY MANAGER.
HE DOES A GREAT JOB. AND WE'RE GOING TO TALK MORE ABOUT WHAT LOGAN'S GOING TO DO TONIGHT IN JUST A SECOND. I ALSO WANT TO RECOGNIZE OUR COUNCIL MEMBERS THAT ARE HERE MR. FRANK MILLSAP AND MISS LINDSEY. BUHLER. THANK YOU FOR COMING. I APPRECIATE THAT. AND SCOTT GRIGG, HE IS NOT WITH THE CITY PER SE, BUT HE IS WITH THE COLLIN COUNTY TAX ASSESSOR, RIGHT? YES. YEAH. AND SO THANK YOU, SCOTT, FOR COMING OUT.
THAT WAY, PEOPLE LISTENING ONLINE AND WATCHING IT LATER CAN ACTUALLY HEAR THE QUESTION. I WILL ALSO SAY BEFORE WE DO THE Q&A, JUST KIND OF WANT TO GIVE EVERYBODY AN IDEA. THIS IS IF YOU HAVEN'T EVER SEEN A PHYSICAL COPY OF THE BUDGET, THIS IS WHAT IT LOOKS LIKE. IT IS NOT A READING YOU CAN DO IN THE EVENING UNLESS YOU ARE REALLY INTO THOSE THINGS.
BUT AS THE VIDEO SAID, THIS IS CERTAINLY NOT DONE OVERNIGHT.
AND PART OF THIS PROCESS THAT WE'RE HERE TONIGHT TO PARTICIPATE IN IS VERY VITAL TO THIS END RESULT IN PRODUCT, BECAUSE WE DO WANT FEEDBACK FROM OUR RESIDENTS.
AND I WOULD EMPHASIZE EVEN AT THAT TIME, IT'S A PROPOSED BUDGET, IT'S NOT THE FINAL BUDGET.
AND AGAIN, ALL DURING THE PROCESS WE WANT PARTICIPATION, PARTICIPATION FROM OUR RESIDENTS.
AND THAT'S WHY WE HAD THE SLIDE UP THERE. IF YOU CAN'T MAKE MEETINGS LIKE THIS, YOU CAN CERTAINLY HAVE QUESTIONS TONIGHT, BUT YOU MAY THINK OF ANOTHER QUESTION LATER. YOU CAN EMAIL US.
DO WE RUN A DEFICIT OR SURPLUS PER YEAR? NEITHER.
SO WE ARE REQUIRED TO HAVE A BALANCED BUDGET.
[00:10:02]
THEY ARE NOT STATUTORILY REQUIRED TO HAVE A BALANCED BUDGET.AND I LOVE THE FACT THAT I WOULD NEVER WANT TO DO THAT.
BUT IF WE COULD, I'M GLAD WE DO NOT HAVE THAT ABILITY BECAUSE WE, AS COUNCIL ARE ELECTED TO BE GOOD STEWARDS OF THE RESIDENTS MONEY. AND HAVING A BALANCED BUDGET DEFINITELY DOES THAT.
ANOTHER QUESTION IS GROWING IN POPULATION ARE STAYING THE SAME.
SO REVENUE. SO, THERE'S I'LL ANSWER THAT TWO WAYS.
ONE IS FROM A POPULATION GROWTH STANDPOINT, WE ARE STILL GROWING.
AS YOU CAN IMAGINE. WE ARE NOT GROWING AS FAST AS WE USED TO.
A GOOD EXAMPLE IS IN THE 2000, 2000, 2010, WE DID SEE A LOT OF I WOULDN'T KNOW IF I'D SAY EXPONENTIAL GROWTH, BUT IT GREW PRETTY FAST WITH ALL THE NEW HOUSING STARTS.
NOW IN THE 2020S, WE HAVE DEFINITELY SEEN THAT SLOW DOWN.
AND AS THE CITY GETS CLOSER TO BUILD OUT. YOU WILL SEE THAT PLATEAU.
AND SO AT THAT POINT, WE WILL NOT HAVE ANY MORE RESIDENTS.
I MEAN, IT'LL ALWAYS VARY A LITTLE BIT, BUT AS FAR AS PURE GROWTH, THAT WILL STOP.
LIFE CYCLE. SO THEN PROPERTY TAX AS WE TALKED ABOUT BRIEFLY ON IN THE VIDEO IS PROPERTY TAX.
THE MAJORITY OF OUR PROPERTY TAX RIGHT NOW COMES FROM OUR RESIDENTS.
NOW WE DO GET MORE COMMERCIAL PROPERTY TAX THAN WE USED TO OF COURSE, 15, 20 YEARS AGO.
AND THAT'S WHAT I REALLY FEEL LIKE. OUR ECONOMIC DEVELOPMENT HAS DONE A REALLY GOOD JOB, BECAUSE THE MORE BUSINESSES WE ATTRACT THAT CAN PAY THAT SHARE OF THE PROPERTY TAX, IT LESSENS THE BURDEN ON OUR RESIDENTS. AND SO WE ARE SEEING, OF COURSE, WITH VALUATIONS INCREASING EVERY YEAR, THAT'S ANOTHER PART OF THE EQUATION THAT WE HAVE TO DEAL WITH IS BUSINESS.
NEW BUSINESS COMING INTO THE CITY. IS IT GROWING PERCENTAGE WISE? YES. NOW AGAIN, IT DEPENDS ON HOW YOU DEFINE GROWING.
YOU KNOW, SO. AND NOT TO BE TOO NUANCED, BUT I'LL USE CONNIE ROSSO AS AN EXAMPLE.
SO A BRAND NEW PIZZERIA RESTAURANT THAT CAME INTO SACHSE THAT WASN'T HERE BEFORE.
SO OBVIOUSLY WE DID NOT GENERATE ANYTHING FROM A SALES TAX OR EVEN PROPERTY TAX STANDPOINT AT ALL.
SO FROM THAT STANDPOINT, IN A PURE SENSE, YES, OUR COMMERCIAL TAX BASE HAS GROWN.
AND PROBABLY THE BEST EXAMPLE HISTORICALLY IS WALMART.
SO WALMART CAME HERE IN 2015 AND BEFORE WE HAD WALMART, THE ONLY THING OF OF CONSEQUENCE, IF YOU WILL, FROM A PROPERTY TAX AND SALES TAX STANDPOINT WAS KROGER.
AND KROGER CAME IN 2001. AND SO YOU HAD A 14 YEAR PERIOD WHERE KROGER WAS THE BIGGEST COMMERCIAL PROPERTY TAX GENERATOR IN SALES TAX GENERATOR UNTIL WALMART CAME. AND SO WHEN WALMART CAME, AND OF COURSE, THEY ALSO BUILT A NEIGHBORHOOD MARKET ON THE NORTHWEST SIDE OF TOWN. AND YOU COMBINE THOSE TWO THINGS. AND THAT REALLY PROPELLED AT LEAST I FEEL THAT REALLY PROPELLED SACHSE INTO THE RIGHT DIRECTION IN INCREASING OUR COMMERCIAL PROPERTY TAX.
AGAIN, THE ULTIMATE GOAL IS TO WE'RE NEVER GOING TO ELIMINATE THE RESIDENTIAL BURDEN COMPLETELY, OF COURSE, BUT THE MORE WE CAN TAKE IT OFF OUR RESIDENTS, OBVIOUSLY THE BETTER IT IS FOR YOUR WALLET.
BECAUSE IF YOU LOOK AT THE PERCENTAGE OF BUILD OUT, WE ARE MUCH CLOSER TO BUILD OUT ON THE RESIDENTIAL SIDE OF SACHSE THAN THE COMMERCIAL SIDE. NOW, AGAIN, THE COMMERCIAL SIDE IS NOT WE DON'T HAVE 10,000 ACRES TO BUILD OUT, BUT WE HAVE.
ANYTHING ONLINE, ESTHER? NO. OKAY. OTHER QUESTIONS.
IF YOU LOOK AT OUR HISTORICAL TAX RATE IN 2015, THIS PAST YEAR, IN THE PAST TWO YEARS, BEFORE THAT, THE RATE WAS JUST ROUNDING UP OR DOWN $0.65 PER $100.
IN 2015, THAT TAX RATE PER $100 WAS $0.75. SO IT WAS $0.10 MORE IN 2015.
SINCE THEN, OF COURSE, IN THAT TEN YEAR PERIOD, WE'VE BEEN ABLE TO REDUCE THE TAX RATE BY $0.10.
[00:15:01]
COMMERCIAL PROPERTY TAX AND QUITE FRANKLY, SALES TAX AS PART OF THAT TOO, THAT THEY'VE BEEN ABLE TO GENERATE.SO SO AGAIN, THAT'S WHY ECONOMIC DEVELOPMENT AND PROBABLY SOUND LIKE A BROKEN RECORD.
BUT THAT'S WHY ECONOMIC DEVELOPMENT IS SO IMPORTANT. IT'S IMPORTANT FOR EVERY TOWN, BUT IT'S DEFINITELY IMPORTANT FOR A TOWN THAT, YOU KNOW, QUITE FRANKLY, IS ABOUT TO BE BUILT OUT. AND ANYTHING WE CAN DO, NOT JUST ONLY TO REDUCE THE PROPERTY TAX BURDEN FOR OUR RESIDENTS, BUT QUITE FRANKLY, GIVE THEM COOL PLACES TO GO, YOU KNOW, AND SHOP RIGHT HERE BECAUSE THAT HELPS THE SALES TAX BASE.
AND SO THAT'S WHY IT WAS VERY AS YOU HEARD IN THE VIDEO, THAT'S WHAT WAS VERY, VERY IMPORTANT.
AND EVERY TIME SOMEONE BUYS SOMETHING HERE, THEY DON'T HAVE TO LIVE HERE.
THAT MONEY THAT QUARTER CENT IS GOING INTO THAT FUND.
SO THAT'S WHY I ALWAYS JOKE WITH PEOPLE THAT I MEET AND ARE FROM WYLIE OR FROM GARLAND, FROM WHEREVER ELSE. AND THEY'RE SPENDING MONEY IN OUR CITY. IT'S LIKE, THANK YOU FOR HELPING OUR ROADS. WE APPRECIATE THAT. SO. OTHER QUESTIONS.
BUT LET ME JUST SAY A FEW THINGS AS WE WRAP UP.
AGAIN, I WOULD EMPHASIZE THAT AS A VIDEO SLIDE SHOW, WE HAVE AN EMAIL BUDGET AT CITY OF SAKS.COM.
SEND THAT EMAIL AND THEN. OR YOU CAN DO IT IN THE MORNING WHEN YOU WAKE UP. BUT WE WILL GET IT.
AND THAT EMAIL IS DEDICATED. CORRECT. MR. BALDWIN.
THAT EMAIL IS GOING TO GO STRAIGHT TO OUR FINANCE STAFF.
AND WHATEVER QUESTION YOU HAVE, THEY'RE GOING TO GIVE YOU THE ANSWER THAT YOU WANT.
I WILL TELL YOU. AND I DON'T EVER SPEAK FOR COUNCIL, BUT I'M PRETTY SURE THAT THEY FEEL THE SAME WAY IS THAT THE MORE INPUT WE GET FROM OUR RESIDENTS THE BETTER THAT DOCUMENT FOR 25-26 IS GOING TO BE.
AND WE NEED THESE GUYS TO LOVE IT TO GET A GREAT BUDGET.
BUT WE DEFINITELY UNDERSTAND THAT IT IS SOMETHING THAT IT'S NOT ALWAYS TOP OF MIND.
BUT THIS IS THE ONE PERIOD OF THE CALENDAR YEAR, JUNE TO SEPTEMBER BASICALLY, THAT YOU AS A RESIDENT CAN HAVE THE MOST IMPACT ON WHAT THE BUDGET MIGHT LOOK LIKE. NOW, I WILL SAY THIS IS THAT THE COUNCIL IS ULTIMATELY RESPONSIBLE FOR WHAT'S APPROVED, WHAT'S NOT APPROVED WITH REQUESTS AND THINGS LIKE THAT. THAT'S PART OF OUR RESPONSIBILITIES TO DO THAT.
AND SO AGAIN, THE MORE IMPACT, THE MORE FEEDBACK WE GET, THE BETTER DECISIONS WE CAN MAKE.
BUT AGAIN, A LOT OF TIMES WHAT HAPPENS I HAVE FOUND IN MY EXPERIENCE IS THAT YOU WON'T THINK ABOUT IT TODAY, BUT YOU'RE GOING TO BE DRIVING DOWN THE ROAD, YOU'RE GOING TO SEE SOMETHING, AND YOU GO, HEY, WHAT ABOUT THAT? YOU KNOW, QUITE FRANKLY, INPUT IS WHAT WE GOT FOR OUR SPLASH PADS.
BUT I WOULD REALLY SAY THEY DEMANDED THAT, AND WE WERE ABLE TO DELIVER ON THAT.
AGAIN, THAT'S DIRECTLY FOR RESIDENT INPUT. THAT SAID, HEY, OUR KIDS WOULD LIKE THIS.
NOW, WE CERTAINLY UNDERSTAND THAT. WHAT IS PRIORITY TO SOME? IT'S NOT PRIORITY TO OTHERS. THAT IS PART OF THE PROCESS.
AND THAT'S WHY WE HAVE WE DON'T HAVE ONE GUY SITTING UP HERE.
AND WE CERTAINLY UNDERSTAND THAT NOT EVERYBODY IS GOING TO AGREE ON EVERY DECISION WE MAKE.
WE KNOW THAT'S BAKED INTO THE CAKE, IF YOU WILL.
BUT AGAIN, THE MORE INPUT WE GET, THE BETTER.
I FEEL LIKE THE BETTER BUDGET WE CAN HAVE. SO ALL RIGHT.
ONE LAST CHANCE. ANY QUESTIONS ONLINE? NO. OKAY.
OKAY. WELL, THANK YOU ALL SO MUCH FOR COMING.
AND THANK YOU ONLINE FOR WATCHING. IF YOU'RE WATCHING THIS LATER. AGAIN, THANK YOU FOR WATCHING. AND YOU CAN REWIND TO YOUR HEART'S CONTENT. AND THEN WE WILL SEE YOU THROUGHOUT THE BUDGET PROCESS. AND THEN ESPECIALLY IN SEPTEMBER AT OUR BUDGET AND BEVERAGES.
THANK YOU ALL VERY MUCH.
* This transcript was compiled from uncorrected Closed Captioning.