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>> WELL, WELCOME EVERYONE OUT TO
[1. Call to Order: The City Council of the City of Sachse will hold a special meeting on Monday, July 28, 2025, at 6:00 PM to consider the following items of business:]
THE SPECIAL SACHSE CITY COUNCIL MEETING TODAY IS MONDAY, JULY 28, 2025.>> TIME IS 6:00 PM. WE ARE CALLED TO ORDER.
NEXT ITEM ON THE AGENDA, IS ITEM 2 DISCUSS
[2. Discuss the Fiscal Year 2025-2026 Preliminary Budget.]
THE FISCAL YEAR 2025-2026 PRELIMINARY BUDGET, MS. NASH.>> MAYOR AND COUNCIL, IT'S TIME FOR YOUR FAVORITE TIME OF YEAR.
WE'RE GOING TO TALK ABOUT THE 25-26 BUDGET.
YOU'LL SEE A CAST OF CHARACTERS UP HERE TONIGHT TO TALK ABOUT DIFFERENT PARTS OF THE BUDGET.
I WILL BE DOING SOME PARTS OF IT.
DAVID BALDWIN, OUR FINANCE DIRECTOR, WILL BE DOING PARTS OF IT.
LAUREN ROSE, OUR ASSISTANT CITY MANAGER WILL ALSO COME IN AND HAVE A FEATURED ROLE AS WELL.
IT'S A LENGTHY PRESENTATION, BUT THIS INFORMATION, OF COURSE, WAS AVAILABLE IN THE PACKET FOR THOSE WATCHING IF THEY WANT TO FOLLOW ALONG WITH 77 SLIDE DECK.
BUT ONE OF THE THINGS I WANTED TO MAKE SURE TO POINT OUT FOR THOSE THAT ARE NOT HERE, AND EVEN THOSE THAT ARE HERE IS, WHILE THIS IS A DISCUSSION ONLY ITEM TONIGHT FOR THE COUNCIL TO DISCUSS, WE DO HAVE OPPORTUNITIES FOR CONTINUED PUBLIC INPUT.
WE HAVE A EMAIL CALLED BUDGET@CITYOFSACHSE.COM.
IF ANYBODY HAS ANY SPECIFIC QUESTIONS THAT IS NOT HERE TONIGHT, AND THEY'D LIKE TO ADD THOSE OR IF YOU ARE HERE AND WANT TO DO THAT AS WELL, BUT WE ALSO HAVE STAFF HERE TO PARTICIPATE.
MAYOR, WITHOUT FURTHER ADO, I'LL HAVE DAVID BALDWIN OUR FINANCE DIRECTOR START US OFF TO DO A FINANCIAL UPDATE.
>> THANK YOU, MS. NASH, HELLO, MR. BALDWIN.
>> HELLO, MAYOR. COUNCIL. GOOD TO BE HERE THIS EVENING.
FOR THIS, FOR OUR BUDGET WORKSHOP, I JUST WANT TO POINT OUT THAT THIS ISN'T THE FIRST OF THE BUDGET DISCUSSION THAT WE'VE HAD WITH COUNCIL THIS YEAR.
THE FIRST ONE WAS ON JUNE 2ND FOR AN EARLY CITIZEN INPUT ON THE BUDGET.
THEN THERE WAS ALSO A BUDGET TOWN HALL MEETING ON JUNE 10TH.
PLENTY OF BUDGET DISCUSSION HAPPENED ALREADY AND MORE TO COME THROUGHOUT THE MONTHS AHEAD.
AS AN OVERVIEW, GINA MENTIONED THIS, SO I WON'T DWELL ON IT, BUT WE'LL GO THROUGH THE FINANCIAL UPDATE.
WE'LL LOOK AT STRATEGIC PRIORITIES, THE PRELIMINARY BUDGET, AND I'LL FOLLOW UP IN THE END WITH TALKING ABOUT THE BUDGET PROCESS NEXT STEPS.
FOR MY SECTION OF THIS PRESENTATION ON THE FINANCIAL UPDATE, I WILL BE GOING LOOKING AT THE GENERAL FUND.
WHERE'S OUR REVENUE RIGHT NOW? WHAT ARE WE LOOKING AT AT THIS POINT IN THE YEAR? WE'LL LOOK AT A THREE YEAR PROJECTION, TAKE A LOOK AT FUND BALANCE, AND THEN SEE WHAT OUR DEBT PICTURE LOOKS LIKE.
ON TO THE FIRST SLIDE, JUST JUMPING RIGHT IN.
IF WE LOOK AT OUR GENERAL FUND REVENUES SHOWN IN THIS SLIDE HERE, TO THE LOWER RIGHT, IT SAYS, THIS IS OUR FISCAL YEAR 24.
THOSE COLLECTIONS WERE $27.4 MILLION.
HERE'S THE PIE THAT MAKES UP THE BREAKOUT OF THOSE REVENUES.
PROPERTY TAXES REMAINS AS THE LARGEST OF THE REVENUES, COMING IN AT 60%.
OVER THE YEARS SINCE 2017, IT'S RANGED FROM 57%- 64%, AND RIGHT NOW IT'S JUST RIGHT IN THE MIDDLE OF THE RANGE IT'S BEEN AT AT 60%.
OUR SECOND LARGEST REVENUE IS SALES TAX, AND THAT'S RANGED OVER THE YEARS FROM 9%-12%.
AGAIN, LOOKING NORMAL WITHIN THAT RANGE AT 11%.
OUR THIRD OF THE TAXES OUR THIRD LARGEST IS FRANCHISE FEES COMING IN AT 8%.
PROPERTY TAXES, SALES TAXES, AND FRANCHISE FOR THE CITY IS 79% OF OUR REVENUE COLLECTIONS.
THAT'S RANGED FROM 76% IN 2020 AND 2021, ALL THE WAY UP TO 84% BACK IN 2018.
AS FAR AS OUR PICTURE HERE, THE PIE SLICES ARE LOOKING PRETTY SIMILAR TO PRIOR YEARS.
LOOKING AT WHERE THE GENERAL FUND IS THROUGH JUNE 30TH.
THAT'S OUR MOST RECENTLY COMPLETED MONTH, MOST RECENTLY CLOSED.
THAT'S 75% THROUGH OUR FISCAL YEAR.
OUR FISCAL YEAR IS FROM OCTOBER 1ST, THROUGH THE FOLLOWING SEPTEMBER 30TH.
LOOKING AT THIS, THIS IS JUST A SNAPSHOT.
IT'S A SNAPSHOT OF WHERE WE ARE IN TIME, AND YOU MIGHT EXPECT EVERYTHING TO BE 75% THROUGH THE YEAR.
BUT THAT'S NOT HOW REVENUES COME IN.
WE LOOK AT PROPERTY TAX, AND WE KNOW THAT THAT'S COLLECTED EARLIER IN THE YEAR.
LOOK AT EXPENDITURES, AND WE KNOW THAT A LARGE VEHICLE PURCHASE OR A ONE TIME PAYMENT ON A CONTRACT CAN COMPLETELY FRONT LOAD EXPENSES AND MAKE THE PERCENTAGES LOOK WEIRD.
THIS IS JUST MEANT TO BE A SNAPSHOT OR JUST A QUICK VIEW OF WHERE WE'RE AT.
IT'S NOT NECESSARILY SIGNS FOR CONCERN IF WE'RE BELOW 75%.
IT'S NOT NECESSARILY THAT REVENUES ARE JUST GOING TO BE THROUGH THE SKY IF WE'RE ABOVE 75% AT THIS POINT IN THE YEAR.
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BUT LOOKING AT PROPERTY TAXES, THAT'S, AGAIN, OUR LARGEST REVENUE. WE'RE 98% COLLECTED.PROPERTY TAX REVENUE WILL CONTINUE TO BE COLLECTED THROUGHOUT THE FISCAL YEAR, SO WE'LL LIKELY BE AT 100%, MAY EVEN EXCEED 100% BY YEAR END.
SALES TAX, WHICH ALSO INCLUDES MIXED BEVERAGE SALES TAX IS AT 71%.
NOW, THAT IS TRENDING SLIGHTLY BELOW OUR BUDGET PACE, MAYBE, 100,000 OR SO BELOW 100,000 OR 200,000.
IT'S 2% BELOW WHERE WE'VE BEEN IN THE PAST, BUT THAT'S EASILY COLLECTED THE LINES FOLLOWING.
FRANCHISE FEE REVENUES ARE COLLECTING STRONG.
EVERYTHING BUT CABLE IS OVERPERFORMING.
ELECTRICITY, STORM DRAINAGE, WATER.
ALL OF THOSE REVENUES ARE STILL COMING IN STRONG.
LICENSES AND PERMITS, YOU SEE, THAT'S THE FIRST OF TWO CATEGORIES THAT ARE A BIT LOWER, BUT IF YOU WILL NOTICE, THOSE ARE OUR SMALLEST REVENUE CATEGORIES.
THAT'S DUE TO BUILDING PERMIT ACTIVITY, DEVELOPER FEES, INSPECTION FEES.
THOSE REVENUES HAVE BEEN LOW FOR SOME TIME.
AS YOU CAN SEE, WE'RE ABLE TO MANAGE THAT WITH THE REVENUE OVER COLLECTIONS AND THE STRONG POSITION WE ARE THROUGH OTHER PIECES OF THAT REVENUE PIE.
THEN MOVING TO EXPENDITURES, WE'RE AT 74% SPENT.
AGAIN, 75% THROUGH THE YEAR, WE'RE RUNNING JUST UNDER THAT WITH OUR EXPENDITURES.
LOOKING AT OUR ASSESSED PROPERTY VALUES, THESE VALUES INCLUDE OUR TOURS, IT INCLUDES FREEZE VALUES.
IT EXCLUDES ANY PROTESTS, BUT IT GIVES A LOOK AT HOW HAVE OUR COLLECTIONS BEEN OVER THE YEARS.
OVER THE YEARS SHOWN 2018-2025, WE'VE AVERAGED 11.5% GROWTH PER YEAR IN THAT PERIOD.
IN THE BLUE BAR THAT'S SHOWING THE TOTAL ASSESSED VALUE.
THE GREEN LINE IS SHOWING THE GROWTH.
IF YOU LOOK AT THE OVER TO THE RIGHT, YOU CAN SEE THE GUIDE FOR THAT LINE TO SHOW YOU WHAT PERCENTAGE GROWTH WE'VE HAD FROM YEAR TO YEAR.
WHAT YOU CAN SEE IS THAT GROWTH IN ASSESSED VALUE REALLY INCREASED BEGINNING IN 2022, ALL THE WAY UP THROUGH 2023, AND IT HAS BEEN TAPERING OFF A BIT, BUT STILL STRONG AT AROUND 12%, AS OF CURRENT TO 2025.
LOOKING AT OUR SALES TAX RECEIPTS.
THE BAR CHART IS SHOWING THE VARIOUS REVENUES SALES TAX RECEIPTED IN THE GENERAL FUND, ECONOMIC DEVELOPMENT, CORPORATION FUND AND STREET MAINTENANCE AND MUNICIPAL DEVELOPMENT.
YOU CAN SEE SALES TAX LARGELY HAS INCREASED OVER THE YEARS.
HOWEVER, THIS YEAR, WE'VE SEEN IT'S VARIED THROUGHOUT THE YEAR.
WE'VE GONE FROM, I THINK, ABOUT 8% GROWTH IS WHAT WE WERE TRENDING ON, AND THEN IT WOULD DROP DOWN.
IT'S BEEN VARIED AS OF LATE, RIGHT NOW, IT'S TRENDING ON 2% BELOW PRIOR YEAR COLLECTIONS.
THAT IS WITH TWO MORE MONTHS REMAINING AUGUST AND SEPTEMBER.
WE HOPE TO SEE IT PULL OUT. IF IT DOES REMAIN LOW, AGAIN, IT'S ONLY ABOUT 100,000 OR $200,000 DIFFERENCE, AND WE CAN MAKE THAT UP IN THE BUDGET WITH OTHER REVENUE COLLECTIONS.
WHAT DOES THIS ALL MEAN FOR THE GENERAL FUND? WHEN WE PROJECT OUT OUR REVENUES AND EXPENDITURES, YOU CAN SEE THE LINES REMAIN SEPARATED.
WE'RE LOOKING AT TAXABLE REVENUES.
OVERALL, WE SEE GROWTH IN THE FUTURE OF ABOUT 4%.
SALES TAX, WE'VE PROJECTED TAKING A DIP FROM PRIOR YEAR GROWTH, GIVING IT A 3% GROWTH, AND ALL OTHER REVENUES GROWING AT 3%.
WHEN YOU EXCLUDE THE SUPPLEMENTAL REQUESTS SO FAR IN THIS BUDGET, WHEN YOU ASSUME HEALTH EXPENSE WILL CONTINUE TO GROW UP WHAT WE'VE SEEN NATIONWIDE, ABOUT 10% ANNUALLY, AND ALL OF THE LINE ITEMS GROWING AT 4%.
YOU CAN SEE IT'S STILL SUSTAINABLE, AND THAT'S WHAT FINANCE HAS MODELED AND UNDERSTANDS TO BE THE FUTURE.
WITH ANYTHING IN THE FUTURE, YOU NEVER KNOW WHAT IT'S GOING TO BE.
THE ONE THING I CAN GUARANTEE IS THAT IT WILL BE WRONG.
THAT'S WHY WE COME BACK EVERY YEAR, AND WE UPDATE IT AGAIN.
BUT RIGHT NOW THERE'S NO ISSUES THAT WE'RE SEEING THAT CAUSE ANY OR ANY REASON FOR CONCERN.
LOOKING AT THE GENERAL FUND BALANCE.
THE LARGE BLUE AREA IS OUR UNRESTRICTED ENDING FUND BALANCE.
THAT'S THE FUNDS THAT WE HAVE AVAILABLE.
IN 2023, THAT WAS 16.2 MILLION DOLLAR.
COUNCIL THEN APPROVED A TRANSFER OF THOSE FUNDS OR A SPECIFIC EXPENDITURE OF 7.1 MILLION DOLLAR.
THAT WAS AN INTENTIONAL DRAWDOWN OF THIS EXCESS FUND BALANCE.
COUNCIL DIRECTED THAT GO TO WOODBRIDGE PARKWAY TO FUND THAT.
YOU'LL SEE THAT IN THE CIP THAT WILL BE PRESENTED.
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HERITAGE PARK WAS COMPLETED.THE SCREENING WALL WAS COMPLETED, AND STAFF WILL BE BACK HERE SEPTEMBER 15TH TO DISCUSS THE SERVICE CENTER.
BEGINNING IN 2024, WE SEE THAT OUR FUND BALANCE IS BETWEEN THOSE TWO DASHED LINES, ONE REPRESENTING 25% TARGET AND THE OTHER A 35% TARGET.
PER POLICY, OUR TARGETED LEVEL OF GENERAL FUND UNASSIGNED RESERVES SHOULD BE BETWEEN THAT LEVEL.
OUR 25 AND 26 ESTIMATE IS THAT IT WILL REMAIN.
OUR FUND BALANCE WILL REMAIN WITHIN THAT AREA.
AT THE 9.1% PROJECTED, AT THE END OF 2026, THAT'S 30%.
WE'RE JUST PEGGED RIGHT THERE IN THE MIDDLE OF WHERE WE SHOULD BE PER POLICY.
MOVING OVER TO THE GENERAL FUND.
AGAIN, HERE IS A SNAPSHOT IN TIME, DUE TO SEASONALITY, DUE TO LARGE EXPENSE, ONE TIME EXPENSE, DEPENDING ON WHEN THEY HIT IN THE YEAR, IT COULD THROW OFF THESE PERCENTAGES.
WHAT WE SEE IS WATER REVENUE IS LOW THIS EARLIER PART OF THE YEAR.
WE EXPECT THE REVENUES TO PICK UP THE LATER MONTHS OF THE YEAR.
SEWER REVENUE IS HIGH, DRAINAGE RIGHT BEHIND IT.
OTHER REVENUE IS AT 96%, AND THAT IS SCHEDULED TRANSFERS FROM OTHER FUNDS INTO THE UTILITY FUND. IT'S ALSO INTEREST.
INTEREST EARNINGS HAVE BEEN PERFORMING WELL.
AND OVERALL OPERATING EXPENDITURES ARE JUST SLIGHTLY ABOVE THAT 75% TREND.
AGAIN, ONE TIME CONTRACTS, VEHICLE EXPENSES, THINGS LIKE THAT, WILL DRAW THAT PERCENTAGE UP IN THE EARLY YEARS.
AGAIN, JUST POINT OUT, THIS IS FOR OUR FISCAL YEAR, SO UTILITY FUND ALSO, THE FISCAL YEAR IS FROM OCTOBER 1ST, THROUGH SEPTEMBER 30TH, RIGHT NOW WE'RE 75% THROUGH THAT FISCAL YEAR, IS WHAT I'M SHOWING HERE.
THEN THE UTILITY FUND OPERATIONS, LOOKING AT A THREE YEAR PROJECTION.
THIS IS LARGELY AS PROVIDED BY NEW GEN SOLUTIONS.
THEY JUST UPDATED OUR RATES LAST YEAR WORKED WITH US ON THAT.
RATES ARE AS WAS DISCUSSED BY NEW GEN. WATER RATES, WE SHOW IN THIS MODEL OF 7% GROWTH FOR WATER AND 2% FOR SEWER.
ON THE EXPENDITURE SIDE, WHAT WE SEE GOING ON IS, SO FIRST OF ALL, THIS EXCLUDES CAPITAL PROJECT, AND SO THAT'S THAT AREA BETWEEN THE BLUE LINE REVENUES AND THE GREEN LINE EXPENDITURES.
IT LEAVES ROOM FOR FUNDING CAPITAL PROJECTS.
OUR WATER EXPENSES, WE SEE FROM NORTH TEXAS MUNICIPAL WATER DISTRICT ARE ESTIMATED TO GO UP 8.7% IN 2026, AND WE ARE MODELING 12% IN THE NEAR TERM OUT YEARS AND 10% ANNUAL GROWTH RATE BEYOND THAT.
WE'VE ADJUSTED THE MODEL, WE WERE EXPECTING, ARE HOPING FOR CLOSER TO 5%.
WE'RE SEEING 10% IN THIS YEAR.
THE MODEL ASSUMES 5% IN OUT YEARS.
MOVING ON IN THIS BIG PICTURE ROUNDED LOOK AT HOW WE'RE DOING.
LET'S LOOK AT THE TAX RATE HISTORY.
YOU SEE HERE, IT SHOWS FROM FISCAL YEAR 2016-2025, IT SHOWS OUR TOTAL PROPERTY TAX RATE IS THE THIRD COLUMN OVER.
THAT'S MADE UP OF MAINTENANCE AND OPERATIONS, THAT M&O RATE, AND THE I&S RATE OR DEBT RATE.
THOSE TWO PIECES OF OUR TAX RATE, WE CAN SEE THAT THE M&O RATE, IF YOU START AT THE TOP OF THAT M&O RATE COLUMN AND LOOK DOWN, IT'S BEEN DECREASING OVER THE YEARS.
LARGELY GOING DOWN OVER TIME, AND IT'S REMAINED STEADY IN BEGINNING IN 2023-2025.
OUR I&S RATE ALSO HAS LARGELY REMAINED STEADY SINCE 2018-2025.
THE TOTAL TAX RATE, YOU'LL SEE THAT LARGELY IT'S BEEN GOING DOWN.
THE TOTAL TAX RATE DECREASES AS THE I&S RATE OR DEBT RATE REMAINS UNCHANGED.
THAT HELPS US THE I&S RATE REMAINS UNCHANGED.
THAT HELPS US FUND CAPITAL PROJECTS AND OTHER LARGE NEEDS.
ALL OF THE DEBT THAT WE HAVE TO THE CITY, EXCLUDING THE GENERAL FUND.
IF I TAKE THE EXISTING I&S TAX RATE THAT WE SHOWED IN THE PRIOR SLIDE AT 0.194207, IF I MULTIPLY THAT BY THE TAX VALUE, THEN I GET THAT GREEN LINE AT THE TOP.
THE GRAY AREA IS ALL OF OUR DEBT SERVICE, THE PRINCIPAL AND INTEREST THAT WE'RE PAYING ON THE DEBT THAT WE HAVE, THE DEBT SHOWING IN BLACK TO THE LOWER RIGHT.
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WHAT IT CREATES IS THAT BLUE AREA THAT'S GROWING, AND WE SEE THAT AS WE GO TO THE OUT YEARS, OUR CAPACITY FOR DEBT, OUR AVAILABILITY TO FUND DEBT WITH THAT EXISTING TAX RATE INCREASES.THERE IS OPPORTUNITY IF THE NEED TO ARISES TO ISSUE DEBT IN THE FUTURE.
IF COUNCIL HAD QUESTIONS, I'M AVAILABLE FOR THAT.
OF COURSE. I'M HERE ALL NIGHT ALSO. [LAUGHTER]
>> WELL, I DON'T PLAN ON BEING HERE ALL NIGHT.
THANK YOU, MR. BALDWIN. APPRECIATE IT.
COUNCIL, I FAILED TO MENTION THIS IN THE BEGINNING.
WHAT WE'RE GOING TO DO IS WE'RE GOING TO TAKE EACH SECTION AND DO QUESTIONS AND WILL MOVE ON TO THE NEXT SECTION THAT WAY.
YOU DON'T HAVE TO REMEMBER ANYTHING IN THE BEGINNING.
WITH THAT, QUESTIONS OR COMMENTS ON THIS FIRST SECTION FOR STAFF.
>> I'LL GO FIRST. JUST A FEW QUESTIONS.
ON THE GENERAL FUND, YEAR TO DATE, YOU WERE GOING THROUGH ALL THE PROPERTY TAX, SALES TAX, ALL THAT STUFF, AND YOU MADE A COMMENT ABOUT FRANCHISE REVENUE, AND YOU JUST SAID, EVERYTHING BUT CABLE'S DOING WELL.
IS THERE A REASON FOR THAT OR WAS A CONTRACT RENEGOTIATED OR SOMETHING LIKE THAT? WHAT'S THE MEANING BEHIND THAT?
>> YEAH. NOT NECESSARILY A DRIVER. I HAVEN'T LOOKED.
I HAVEN'T DONE THE DETAILED LOOK TO SEE, ARE WE GETTING THAT, I'LL SAY SPECTRUM, PAYMENT EVERY MONTH.
OFTEN, THINGS LIKE THAT COULD JUST BE ONE MISSED RETURN OR JUST SOMETHING, WHEN WE RAN THE REPORT THAT IT DIDN'T COME IN IN TIME.
UNFORTUNATELY, I DIDN'T DRIVE THAT NEXT LEVEL DEEP TO BE ABLE TO ANSWER YOU RIGHT NOW?
>> THEN JUST THE GENERAL FUND OPERATIONS THREE-YEAR PROJECTION, SLIDE 9.
>> YOU SAID THAT GAP, WHICH IS ROUGHLY, I'M READING TO RIGHT ABOUT $2 MILLION BETWEEN THE REVENUES AND EXPENDITURES, FORECASTED OVER TIME.
>> FOR THE GENERAL FUND, IT RANGES FROM ABOUT, IT'S 1.6 MILLION IN 2026, 1.9 MILLION IN '27.
>> THAT'S FINE. BASED ON FORECASTING, THAT WOULD JUST GO ON TOP OF OUR GENERAL FUND THAT WE CURRENTLY HAVE.
WOULD IT BE ADDED TO OUR GENERAL FUND EVERY YEAR INITIAL?
>> IF EXPENDITURES REMAIN WHERE THEY ARE, IF REVENUES REMAIN WHERE THEY ARE, WHAT HAPPENS TO THE EXCESS REVENUES? IT GOES TO THAT FUND BALANCE.
HOWEVER, AT THIS POINT IN THE BUDGET PROCESS, SO WE'RE JUST LAYERING THINGS IN, SO HOW DOES EVERYTHING LOOK PRIOR TO THE CITY MANAGER'S PROPOSED BUDGET, PRIOR TO THE RECOMMENDATION OF SUPPLEMENTAL REQUESTS.
RIGHT NOW, THIS EXCLUDES THOSE SUPPLEMENTAL REQUESTS.
SOMETIMES THOSE FILL THE GAP TO AN EXTENT.
>> I LIKE LOOKING AT THE TAX RATE HISTORY THAT CONSISTENTLY, THE TAX RATE'S BEEN GOING DOWN.
I THINK SOMETIMES THAT'S JUST NOT SAID ENOUGH HERE.
>> OTHER QUESTIONS FOR MR. BALDWIN ON THIS SECTION? WE CAN ALWAYS COME BACK.
IF YOU THINK OF SOMETHING LATER ON, YOU CAN WE CAN ALWAYS COME BACK TO THIS, BUT WITH THAT, IF THERE'S NO OTHER QUESTIONS OR COMMENTS, WE WILL MOVE ON TO THE STRATEGIC PRIORITIES.
I BELIEVE MS. NASH WILL BE INTRODUCING OR DISCUSSING THAT, I SHOULD SAY.
>> YES. LET'S SEE IF THIS WORKS, DAVID.
YES. IN TERMS OF STRATEGIC PRIORITIES, THE CITY COUNCIL HAD YOUR STRATEGIC PLANNING RETREAT EARLIER IN 2025 TO TALK ABOUT YOUR PRIORITIES FOR THE COMING YEAR, AND REALLY FOCUSED ON TWO DIFFERENT THINGS.
IN THAT CONVERSATION, THE COUNCIL DID CONFIRM YOUR COMMITMENT TO INVEST IN OUR CITY'S INFRASTRUCTURE, AS WELL AS OUR EMPLOYEES.
WE BUILT A BUDGET OFF THAT MOMENTUM THAT WAS SET IN MOTION IN THE PRIOR YEARS, FOCUSING ON A STRONG CIP.
I'M BOLSTERED BY THE BOND 2021, AND WE'RE BUILDING ON THAT MOMENTUM, AS WELL AS FULFILLING THE RECOMMENDATIONS FROM THE BAKER TILLY COMPENSATION STUDY THAT YOU ALL FUNDED IN LAST YEAR'S BUDGET, STARTED THE PROCESS IN DECEMBER, AND WE HAVE BEEN WORKING ON ALL OF 2025 TO THIS POINT.
AS A RESULT OF THE FOCUS OF THESE TWO THINGS, I WANT TO MAKE SURE IT'S CLEAR, WE WILL HAVE NO SUPPLEMENTAL REQUESTS IN THIS BUDGET.
I'M NOT RECOMMENDING ANY OF THEM BEYOND THE COMPENSATION PROPOSAL FOR 2025/2026.
WE HAVE THINGS IN HERE AND YOU'LL BE ABLE TO SEE WHAT WAS REQUESTED, BUT I AM NOT MAKING ANY RECOMMENDATIONS TO DO ANYTHING BEYOND THE COMPENSATION PROPOSAL.
IN TERMS OF INFRASTRUCTURE, WE CERTAINLY HAVE MADE SIGNIFICANT PROGRESS ON THAT BECAUSE OF THE ACCELERATION OF THE BOND 2021 PROGRAMMING THAT THE COUNCIL WANTED TO BE ABLE TO ACCELERATE WITH THE CAPABILITY THAT WE HAVE WITH THE INFORMATION THAT DAVID SHARED RELATIVE TO OUR DEBT CAPACITY,
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AND PROVIDING REALLY ADDITIONAL RESOURCES THROUGH PRIOR BUDGETS TO BE ABLE TO BOLSTER THAT.THE CIP REALLY FOCUSES ON MAINTENANCE OF EXISTING SIDEWALKS, ALLEYS, AND ROADS, BUT IT ALSO ANTICIPATES THAT NEED FOR MAJOR RECONSTRUCTION PROJECTS, AS I TALKED ABOUT THROUGH ANOTHER POTENTIAL FUTURE BOND ISSUANCE THAT WE DISCUSSED IN YOUR COUNCIL RETREAT IN 2027.
AS MENTIONED, IT'S JUST A CONTINUATION REALLY OF THIS MULTI TIERED AND MULTI YEAR APPROACH PRESENTED AS PART OF LAST YEAR'S BUDGET.
WE'RE JUST DOING THAT AS A CONTINUATION IN TERMS OF THOSE STRATEGIC PRIORITIES, COMPENSATION, THE COUNCIL DID AUTHORIZE, AS I SAID, THE BAKER TILLY STUDY STARTING IN DECEMBER OF 2024.
SINCE THAT TIME, BAKER TILLY HAS REVIEWED THE POSITIONS, THE JOB DESCRIPTIONS, THAT PAY PLANS.
WE'VE GOT CERTAINLY DIRECTOR INPUT TO HELP US WITH THIS, AS WELL AS MARKET DATA.
THIS, AND THEN THE COUNCIL HELPING US IDENTIFY THOSE NEW COMPARATOR CITIES, IT'S REALLY HELPED US BUILD THIS NEW MARKET DRIVEN COMPENSATION PLAN.
THEY HAVE PRESENTED TO YOU, AS THE CITY COUNCIL, A COUPLE OF TIMES THIS YEAR, AND MAKING SURE THAT WE GOT ANY QUESTIONS ANSWERED AND MAKING ANY FINAL CHANGES TO ULTIMATELY, WHICH YOU'LL SEE TONIGHT, WHICH IS THE PROPOSAL I'M RECOMMENDING.
IN CONSULTATION WITH THE DEPARTMENT HEAD TEAM AND MY LEADERSHIP GROUP, THIS BUDGET REFLECTS THE RECOMMENDATION OF OPTION 3B, WHICH IS A MATCH MARKET OPTION.
I'LL ROLL RIGHT INTO THE BUDGET.
BUT FIRST, I JUST WANT TO STOP AND GO OVER THE BUDGET CALENDAR.
AS YOU CAN SEE, WE WILL BE BACK HERE NEXT WEEK TO TALK ABOUT THE BUDGET AGAIN AT YOUR REGULAR COUNCIL MEETING, WHERE YOU WILL ACCEPT THE CERTIFIED APPRAISED TAX ROLLS THAT WE JUST RECEIVED ON FRIDAY AND ACCEPT SUBMISSION OF A NO NEW REVENUE AND VOTER APPROVAL TAX RATE.
YOU ALL DO THAT THIS TIME OF YEAR, WHERE YOU APPROVE A TAX RATE WHERE IT IS NOT APPROVED AS THE SET RATE, IT'S THE MAXIMUM THAT YOU'LL ULTIMATELY SET THROUGH THE BUDGET PROCESS IN AUGUST AND SEPTEMBER.
AGAIN, THIS IS JUST SETTING IT AS A CEILING, AND THEN YOU WILL ACTUALLY GO THROUGH THE PROCESS OF THE PUBLIC HEARINGS AND ADOPTING THE BUDGET WITH A SET RATE IN SEPTEMBER.
THE MUNICIPAL DEVELOPMENT DISTRICT, WE'LL STILL NEED TO HAVE THEIR MEETING TO APPROVE THEIR FINAL BUDGET, BUT A NEW EVENT YOU SEE HERE ON AUGUST THE 7TH, BUDGET AND BEVS.
THIS IS A PUBLIC ENGAGEMENT EVENT.
CONNIE ROSSO HAS GENEROUSLY SAID THAT WE CAN UTILIZE THEIR PATIO FOR THIS PUBLIC ENGAGEMENT OPPORTUNITY TO ASK QUESTIONS ABOUT THE BUDGET.
THAT WILL BE ON AUGUST THE 7TH AT 6:00 PM, AND EVERYONE IS WELCOME TO COME AND ASK QUESTIONS AND ENGAGE, ABOUT WHAT'S GOING ON IN OUR BUDGET.
ANOTHER OPPORTUNITY TO NOT HAVE IT HERE AT CITY HALL, BUT AT ANOTHER PLACE MAYBE WHERE OUR RESIDENTS MIGHT FEEL A LITTLE MORE COMFORTABLE, NOT IN THE WILD.
AUGUST 14TH, THE EDC WILL HAVE THEIR REGULAR MEETING TO APPROVE THEIR FINAL BUDGET, AND THEN OF COURSE, I'LL BE BACK ON AUGUST THE 15TH.
I HAVE TO GIVE YOU A PROPOSED BUDGET BY AUGUST 15TH, PER THE CHARTER, BUT THEN I WILL ACTUALLY DO A PRESENTATION TO YOU ON YOUR REGULAR COUNCIL MEETING ON AUGUST THE 18TH, WHICH AT THAT TIME, YOU'LL SCHEDULE YOUR PUBLIC HEARINGS, DO THE RECORD VOTE ON THE MAX TAX RATE TO CONSIDER, AND DISCUSS THE BUDGET.
AGAIN, MORE DATES HERE IN AUGUST, OF NOTICE OF PUBLIC HEARINGS.
JUST A NOTE, SEPTEMBER 2ND, THAT WILL BE A CITY COUNCIL MEETING ON A TUESDAY BECAUSE LABOR DAY BEING ON A MONDAY.
WE'LL HAVE ANOTHER OPPORTUNITY AGAIN FOR ANOTHER COUNCIL MEETING ON SEPTEMBER 15TH TO HOLD THE PUBLIC HEARING ON THE TAX RATE, RATIFY THAT RATE IN THE BUDGET, AND APPROVE YOUR PROPOSED TAX RATE.
AGAIN, LOTS OF OPPORTUNITIES FOR INPUT AND INVOLVEMENT AND CERTAINLY FOR THE COUNCIL TO WEIGH IN OVER THE NEXT TWO MONTHS.
JUST A COUPLE OF QUICK DEFINITIONS, THE BASE BUDGET IS THE PRIOR YEAR BUDGET, LESS THOSE ONE TIME ITEMS AND CAPITAL PROJECTS FUNDING, AND THIS, THE COST OF CONTINUING EXISTING LEVELS OF SERVICE FOR OUR REVENUES AND EXPENDITURES.
THEN SUPPLEMENTAL REQUESTS, OR REQUESTS FOR ANY ADDITIONAL BUDGET, AND AGAIN, THAT'S ANY PROGRAM ENHANCEMENTS, SERVICE ENHANCEMENTS, OR ONE TIME ITEMS. WHAT YOU'LL SEE IN THE BASE BUDGET THAT WE'LL WALK THROUGH THIS EVENING HERE ARE THE GENERAL FUND ASSUMPTIONS, IS THAT OUR PROPERTY TAX CERTIFIED VALUES CAME AT $ 4.94 BILLION.
I'M RECOMMENDING TO KEEP THE TAX RATE FLAT, THAT IT HAS BEEN, THIS WILL BE THE THIRD YEAR IN A ROW, OF 0.650416.
WE HAVE SOME VARYING GROWTH IN SALES TAX, SO WE'RE PROJECTING THESE VERY CONSERVATIVELY.
FRANCHISE FEES ARE STEADY AND WE WILL KEEP THEM AS SUCH.
[00:25:03]
LICENSES AND PERMITS, AS YOU SAW, ARE NUMBERS EARLIER WHERE WE'RE AT.I'M RECOMMENDING THAT WE REDUCE THOSE FOR NEXT YEAR BECAUSE WE ARE RECOGNIZING THAT THERE HAVE BEEN SOME PROJECT DELAYS, CERTAINLY ON COMMERCIAL PROJECTS, AND SO WE'RE GOING TO REFLECT THAT WITH SOME CONSERVATIVE NUMBERS.
OUR EXPENDITURES. AS THE COUNCIL HAS CERTAINLY REITERATED TIME AND TIME AGAIN, THAT YOU WANT TO MAINTAIN QUALITY SERVICES, BUT REALLY WANT TO MINIMAL BASED BUDGET GROWTH DESPITE ANY INFLATION, AND THAT'S WHAT WE HAVE DONE AND ARE PRESENTING TO YOU THIS EVENING.
WHAT YOU'LL SEE HERE IS THE PROJECTION FOR THE GENERAL FUND REVENUE FOR THE '25/'26 BUDGET, AND YOU CAN SEE HERE THAT WE HAVE A FEW AREAS WE DO PROJECT SOME GROWTH, MODEST GROWTH, BUT YOU CAN ALSO SEE, SUCH AS IN LICENSES AND PERMITS, THAT WE'VE BEEN VERY CONSERVATIVE, AND NOT ASSUMING THAT WE WILL BE ABLE TO MAKE THOSE NUMBERS AND LICENSES AND PERMITS NEXT YEAR, BUT IF WE DO, THEN WE'RE ABLE TO GO BACK IN AND ADD THOSE APPROPRIATELY.
AGAIN, OVERALL, A 4% REVENUE GROWTH, WHICH IS VERY CONSERVATIVE.
WHEN YOU LOOK AT THE DEPARTMENTAL SUMMARIES, YOU SEE SOME MODEST GROWTH IN CERTAINLY A LOT OF DEPARTMENTS, SPECIFICALLY THOUGH, YOU'LL SEE OVER THERE WITH COMBINED SERVICES.
THAT WAS A MOVE OF SOME EXPENDITURES FROM ONE AREA TO ANOTHER.
WE HAD A PRIOR YEAR VEHICLE PURCHASES AND GENERAL FUND AND PROPERTY LIABILITY INSURANCE THAT WERE A HIGHER PAYMENT, SO THAT'S WHY YOU'RE SEEING THAT GROWTH IN THERE.
DEVELOPMENT SERVICES DECREASED DUE TO DECREASED PROFESSIONAL SERVICES, BUREAU VERITAS, AND CUTS IN PERSONNEL COST OVERALL.
FACILITIES MAINTENANCE INCREASE DUE TO A TRANSFER BECAUSE OF BUILDING REPAIRS AND MAINTENANCE, BUT AGAIN, MOSTLY WHAT YOU'RE SEEING IN HERE IS JUST SOME MODEST GROWTH THAT IS FOCUSED ON INFLATIONARY GROWTH.
ON THIS, YOU'LL SEE A CONTINUATION WITH DEPARTMENTS, BUT YOU'LL SEE THAT THERE ARE SOME CUTS IN HERE, AND REDUCTIONS, BUT ALSO SOME MINOR INCREASES DUE TO, FOR EXAMPLE, A MUNICIPAL COURT, THERE'S AN INCREASE DUE TO THE JUDGE'S FEES AND ATTORNEY FEES.
THE INCREASE IS DUE TO SOME WATER USAGE COSTS WITH NEW PARKS AND SOME PERSONNEL COSTS.
RECREATION DID A MINOR INCREASE TO SOME SPECIAL EVENTS, ELECTRICITY COSTS, AND THINGS LIKE THAT, AND STREETS, AGAIN, SOME ELECTRICITY INCREASES AS WELL.
OVERALL, YOU'RE SEEING, AGAIN, IN REVENUE A 4% GROWTH, MODEST, BUT A 4% GROWTH.
THEN OUR OPERATING EXPENDITURES, ACTUALLY VERY PROUD OF THIS, WITH A 2% GROWTH GIVEN WHAT WE HAVE EXPERIENCED WITH INFLATION.
I APPRECIATE DEPARTMENT HEADS WORKING WITH THE FINANCE TEAM AND MYSELF TO LOOK FOR OPPORTUNITIES TO LEVEL OUT SOME OF THOSE INFLATIONARY INCREASES WITH SOME CUTS AND EXPENDITURES WHILE STILL, AGAIN, MAINTAINING THE QUALITY SERVICE THAT YOU ALL EXPECT TO RECEIVE. YES, SIR.
DO YOU WANT TO ASK QUESTIONS AS WE GO OR DO YOU WANT TO WAIT UNTIL THIS WHOLE SECTION IS ORDER? DOESN'T LOOK LIKE YOU'RE EVEN HALFWAY THROUGH THE SECTION.
>> YEAH. IF YOU WANT TO ASK ONE NOW, GO AHEAD.
>> I'LL GO BACK A FEW SLIDES, BUT I WAS LOOKING TO SEE HOW MANY SLIDES THE SECTION WAS.
>> IT IS. ON THE GENERAL FUND REVENUE, FIRST, SLIDE 26, I'M GOING TO SAY? LICENSE AND PERMITS.
I KNOW WE TRY TO BE VERY CONSERVATIVE IN OUR ESTIMATES, BUT OVER HALF A MILLION DOLLARS AND 50% CHANGE IS NOT VERY CONSERVATIVE TO ME.
CAN YOU CAN JUST COMMENT ON THAT A LITTLE BIT?
>> SURE. CERTAINLY, IF YOU LOOK AT WHERE WE WERE THIS YEAR WHERE WE PROJECTED OUR REVENUES TO BE, WE'VE HAD TO DIAL THAT BACK SIGNIFICANTLY, AND I DIDN'T WANT TO HAVE THAT POTENTIAL LOOMING FOR NEXT YEAR AS WELL, AND SO I FELT LIKE WE WENT THROUGH ALL OF THE PROJECTS THAT WE WOULD CONSIDER POTENTIALLY ACTIVE IN '25/'26, AND I DID NOT FEEL A STRONG LEVEL OF CERTAINTY THAT SOME OF THOSE PROJECTS WOULD GET ACROSS THE GOAL LINE.
I DIDN'T WANT OUR BUDGET TO BE BASED ON WHAT IF SCENARIOS, AND I FELT MUCH MORE CONFIDENT IN PULLING THAT DOWN TO SOMETHING MORE CONCERT.
[00:30:05]
>> I KNOW YOU MADE A COMMENT ABOUT COMMERCIAL PROJECTS NOT FINISHING ON TIME, BUT I SAW THAT NUMBER AND THAT STICKER SHOCK ON THAT NUMBER?
>> JUST WANTED SOME MORE INFORMATION ON THAT.
SAME THING WITH THE NEXT SLIDE ON 27.
THE DEVELOPMENT SERVICES YOU MADE A QUICK REFERENCE TO IT, BUT IF YOU COULD GIVE ME A LITTLE MORE INFORMATION ON THAT.
>> SURE. ON THE REDUCTION ON DEVELOPMENT SERVICES.
THE FIRST LINE ITEM THAT WE JUST TALKED ABOUT WITH THE DECREASE ON LICENSES AND PERMITS, THAT GOES HAND IN HAND WITH DEVELOPMENT SERVICES.
THE REVENUE REDUCES THE EXPENDITURES FOR USING BUREAU VERITAS, WHICH IS THE THIRD PARTY BUILDING INSPECTION THAT WE USE.
WE THEN HAVE TO DECREASE SERVICES AS A RESULT OF THAT.
>> THAT'S IN DIRECT REFLECTION OF THE FEES?
>> AGAIN, JUST TAKE YOUR SHOT, MORE INFORMATION. GO BACK TO WHERE YOU WERE, SORRY.
>> UTILITY FUND. ON THE UTILITY FUND, AS DAVID REFERENCED EARLIER, THE WATER RATES, THE 7% INCREASE IS WHAT WAS REFLECTED IN THE NEW GEN STUDY FOR OUR WATER ANALYSIS FOR THE NEXT FIVE YEARS MOVING FORWARD, THAT WE WOULD INCREASE THOSE RATES TO BE ABLE TO COVER THE COST OF DOING BUSINESS, NOT ONLY OPERATIONS, BUT ALSO CAPITAL, AND THEN THE APPROPRIATE 2% INCREASE FOR SEWER RATES TO BE ABLE TO AGAIN, COVER THOSE COSTS THAT WERE INCLUDED IN THE STUDY.
EXPENDITURES, THE NORTH TEXAS WHOLESALE WATER RATES INCREASE BY 8.7%.
AS YOU ALL KNOW, THAT'S PASSED THROUGH TO US FROM THE WATER DISTRICT, AND THAT'S REFLECTED IN OUR BUDGET THERE.
THE SAME IS WITH GARLAND WHO DOES OUR SEWER TREATMENT, THEY INCREASE THE RATES BY 10%, AND WE HAVE TO PASS THAT THROUGH TO OUR RESIDENTS.
YOU'LL SEE HERE IN THE WATER FUND REVENUE, WE DO BELIEVE THAT WE WILL HAVE SOME GROWTH IN OUR WATER REVENUE IN '25/'26, AND WE'VE REFLECTED THAT HERE.
THESE RATES WE FEEL ARE CONSERVATIVE BASED ON PRIOR YEARS' GROWTH.
THE DRAINAGE REVENUE WE'VE KEPT FLAT, AND FEES, OF COURSE MODEST, AND IN INTEREST, AS DAVID REFERRED TO EARLIER, WE'VE HAD SOME MODICUM OF SUCCESS WITH GOOD INTEREST RATES, AND SO THAT'S REFLECTED IN HERE.
A TOTAL OVERALL INCREASE OF ABOUT 7%.
>> ON THE EXPENDITURE SIDE FOR THE UTILITY FUND.
YOU CAN SEE AGAIN, SOME INCREASES.
BUT AS YOU'LL SEE HERE AT THE BOTTOM, THIS DOES EXCLUDE ANY ONE TIME SUPPLEMENTALS AND CAPITAL PROJECT FUNDING, AND EXCLUDES THE ONE TIME TRANSFERS TO THE UTILITY VERF.
THEN AGAIN, DRAINAGE EXPENSES.
WE'VE PULLED ALL OF THOSE OUT OF THE UTILITY FUND AND THOSE GO INTO THE CAPITAL PROJECT FUNDS BECAUSE THAT IS SUPPOSED TO BE THOSE DRAINAGE FUNDS ARE ALL FOR CAPITAL PROJECTS.
WE'LL HAVE SOME MORE SPECIFICS ON THAT WHEN I PRESENT TO YOU ALL IN THE PROPOSED BUDGET IN OUR AUGUST MEETING.
AGAIN, REVENUE SUMMARY WITH A 7% GROWTH AND THEN OUR OPERATING EXPENDITURES AT 8%, BUT STILL BEING ABLE TO BALANCE THAT FUND AS REQUIRED.
ON THE DEBT SERVICE SIDE, I'M RECOMMENDING NO CHANGE IN THE TAX RATE TO REMAIN AT 0.194207.
JUST A REMINDER THAT WE DO HAVE TO TAKE OUT OUR TAXABLE VALUE LESS THE TIRZ CONTRIBUTIONS OF 3.88 BILLION.
AGAIN, OUR CERTIFIED VALUES AT 4.94 BILLION.
YOU HAVE TO TAKE OUT THE FREEZE VALUES OF 736 MILLION AND THE TIRZ TWO AND THREE VALUES AT 316 MILLION FOR A TOTAL OF 3.88 BILLION.
YOU CAN SEE HERE WITH DEBT SERVICE, AGAIN, A MODEST AMOUNT OF GROWTH, BUT ACTUALLY WITH OUR DEBT SERVICE PAYMENTS, YOU'VE SEEN A SLIGHT DECREASE OF 2%, STILL OVERALL HEALTHY IN THAT FUND.
AGAIN, WE ACTUALLY BUDGETED A LITTLE BIT LESS ON REVENUE FOR EDC, AS YOU KNOW, THAT COMES FROM SALES TAX.
THAT'S REFLECTED WITH A LITTLE BIT MORE CONSERVATIVE GROWTH, IT'S A REDUCTION.
WE'RE NOT ASSUMING AS MUCH OF A GROWTH IN SALES TAX OVERALL, AND OPERATING EXPENDITURES HAVE BASICALLY REMAINED THE SAME.
FOR OUR VEHICLE AND EQUIPMENT REPLACEMENT FUND,
[00:35:03]
YOU CAN SEE IN HERE, THIS IS OUR FUND FOR THE PUBLIC THAT DOES NOT KNOW, WHERE WE SET ASIDE FUNDS EVERY YEAR TO BE ABLE TO PUT ALL OF OUR VEHICLES AND EQUIPMENT ON A REGULAR REPLACEMENT SCHEDULE.WHAT YOU'LL SEE HERE IS THAT WE DID A DECREASE OVERALL TO THE AMOUNT THAT WE ARE CONTRIBUTING TO THE VERF BECAUSE A FEW YEARS AGO, COMING OUT OF COVID, AS ANYONE RECALLS, WHO WAS PURCHASING VEHICLES AT THAT TIME VEHICLES, AND EQUIPMENT WERE VERY EXPENSIVE COMING RIGHT OUT OF COVID.
WE WERE BEING A LITTLE MORE AGGRESSIVE WITH THE AMOUNT OF MONEY WE WERE PUTTING ASIDE, AND WE'RE FINDING WE DON'T NEED TO DO THAT AS MUCH, SO WE'VE BACKED OFF OF THAT.
YOU'RE GOING TO SEE IN A LOT OF THESE LINE ITEMS THAT YOU SEE THAT WE'VE HAD REDUCTIONS BECAUSE WE HAVE NOT NEEDED TO DO ANY INCREASE ON THOSE PARTICULAR LINE ITEMS. YOU'LL SEE OVERALL REDUCTIONS IN THESE AND AN OVERALL REDUCTION IN THE AMOUNT OF MONEY THAT WE ARE PUTTING ASIDE IN THE VEHICLE AND EQUIPMENT REPLACEMENT FUND, ABOUT 10%.
JUST SOMETHING TO NOTE HERE TOO ON THE AUCTION PROCEEDS AND GRANTS.
WE DON'T BUDGET FOR THAT BECAUSE WE ARE UNSURE EVERY YEAR HOW MUCH WE WILL GET WHEN WE DO AUCTION OFF EQUIPMENT OR VEHICLES, AND WE PUT IN AN AMENDED BUDGET LATER IN THE YEAR ONCE THOSE ITEMS HAVE BEEN AUCTIONED, AND THEN YOU CAN SEE THAT THAT BALANCES OUT WITHIN THE FUND.
YOU'LL SEE HERE IN TERMS OF VEHICLE AND EQUIPMENT FUND EXPENDITURES.
I'M NOT PROPOSING ANY HERE IN '25 '26 IN ANY OF THESE DIFFERENT AREAS, SO THAT'S WHY YOU'LL SEE ZERO FOR '25 '26.
THEN IN OUR VERF REVENUE ALLOCATIONS IN THE UTILITY FUND, YOU'LL SEE WE DO HAVE A TRANSFER IN FROM WATER AND A TRANSFER IN FROM SEWER AND SOME INTEREST INCOME.
BUT ONCE AGAIN, A REDUCED AMOUNT FROM PREVIOUS YEAR. SAME HERE.
NO BUDGET HERE FOR WATER SEWER OR OBVIOUSLY FOR STORM WATER FOR THE UTILITY VERF.
WITH THAT, I'LL TAKE ANY QUESTION ON THIS SECTION.
>> THANK YOU, MS. NASH. MS. BUHLER.
>> I HAD A QUESTION FOR YOU, MS. NASH.
ON SLIDE 34 PAGE 23 OF OUR PACKET.
CAN YOU JUST GO OVER WHAT THE FREEZE VALUES ARE?
>> SURE. DAVID, CAN YOU GIVE HER SOME SPECIFICS? DO YOU HAVE A SPECIFIC QUESTION OR JUST YOU WANT TO UNDERSTAND [OVERLAPPING].
>> WHAT GENERAL LESS FREEZE IS?
>> RESIDENTS OVER 65, ONCE YOU REACH 65, THEN YOU HIT A FREEZE AND YOU DON'T PAY ANYTHING MORE IN TAXES.
WHILE YOUR ASSESSED VALUE GOES UP AND YOU SEE IT IN SOME OF THESE NUMBERS, THE CITY DOESN'T GET THAT REVENUE, SO IT EVENTUALLY GETS BACKED OUT.
THAT'S A FREEZE SHOWING CERTAIN PEOPLES, IF WITH DISABILITIES OR OVER 65, THAT YOUR PROPERTY TAX REMAIN THE SAME, NO MATTER WHAT HAPPENS WITH THE RATE OR THE ASSESSED VALUE?
>> PERFECT. THAT'S WHAT I THOUGHT IT WAS. THANK YOU.
>> OTHER QUESTIONS FOR STAFF ON THIS SECTION? YOU GOT ONE, FRANK. MR. MILLSAP, SIR.
>> FRANK, IF YOU CAN EXCUSE YOU YOUR MIKE JUST A LITTLE BIT.
>> ON PAGE 32, UTILITY FUND DEPARTMENT SUMMARY.
I THINK YOU MENTIONED AS I UNDERSTOOD IT, WHEN YOU'RE TALKING ABOUT A UTILITY ADMINISTRATION, YOU SAID 11%, YOU SAID THAT WOULD BE A ONE TIME FEE.
DOES THAT MEAN IT WILL ONLY BE 11% THIS YEAR AND WE'LL GO BACK DOWN TO ZERO NEXT YEAR, NEXT BUDGET?
>> I MISUNDERSTAND WHAT YOU SAID.
>> DAVID CAN GO AHEAD AND COME UP AND ANSWER SPECIFICS, BUT IT DIDN'T INCLUDE ANY ONE TIME SUPPLEMENTALS OR CAPITAL PROJECTS FUNDING.
BUT, DAVID, IF YOU WANT TO GO INTO THE SPECIFIC. HANG ON.
>> SINCE WE'RE TALKING ABOUT THE 11%, SO UTILITY ADMINISTRATION, THE BUDGET HAS GONE UP.
TO TRY AND SHOW APPLES TO APPLES, WE TAKE PRIOR YEAR OPERATING BUDGET.
WE TAKE OUT ALL OF THE ONE TIME NOISE IF WE'RE GOING TO COMPARE TO ANOTHER YEAR.
THIS OTHER YEAR THAT WE'RE COMPARING TO DOESN'T HAVE ANY SUPPLEMENTAL REQUESTS IN IT YET.
IT'S JUST OPERATING GENERAL EXPENSES TO OPERATING GENERAL EXPENSES.
FOR UTILITY ADMINISTRATION, IT'S GONE UP 11%. WHAT'S HAPPENING THERE.
THAT IS DUE TO CREDIT CARD PROCESSING FEES, PERSONNEL COSTS, AND BANK FEES.
THOSE ARE THE THINGS THAT ARE HITTING US,
[00:40:02]
AND LARGELY, IT'S A GOOD NEWS, BAD NEWS STORY.AS RESIDENTS COME IN, AS WE HAVE NEW WATER CONNECTIONS, AS WE'RE GENERATING MORE AND BILLS GO UP, THOSE WHO PAY THE BILLS, THE ASSOCIATED FEES GO UP TOO.
>> YES. I KNOW LATER ON, WE'RE GOING TO GET INTO SOME OF THE CAPITAL IMPROVEMENT PROJECTS.
BUT WHERE ON THE UTILITY FUND, DO WE SEE STORMWATER AND UTILITY REVENUE?
>> IT'S ON THIS SLIDE RIGHT HERE THAT SAYS DRAINAGE.
YOU SEE THAT THERE'S NOTHING THERE.
IT'S ALL BEEN MOVED TO THE CAPITAL PROJECT FUNDING.
IT'S NOT IN THE UTILITY FUND ANY LONGER.
LIKE I SAID, ON HERE, I'LL TALK A LITTLE BIT MORE ABOUT IT IN THE PROPOSED BUDGET IN AUGUST.
BUT I KNOW WE'LL TALK A LITTLE BIT ABOUT OBVIOUSLY, WE'RE GOING TO BE TALKING ABOUT CAPITAL PROJECTS HERE IN JUST A MINUTE.
BUT WE'LL HAVE MORE INFORMATION ON THE DRAINAGE AT WHEN WE TALK ABOUT THE PROPOSED BUDGET IN AUGUST. IT'S NOT IN.
>> COUNCILMEMBER PRESTENBERG, THIS IS THE EXPENDITURES, AND SO THE EXPENDITURE IS ALL CIP.
IF YOU SAID THE WORD REVENUE, SO JUST IN CASE THE DRAINAGE REVENUE IS HERE, SO THAT IS SHOWING AT $265,000 A YEAR.
IT'S JUST WE'RE NOT SHOWING SPENDING IT IN THE OPERATING BUDGET.
>> I'M FINE WITH THAT. WHEN IT WAS PRESENTED TO US ABOUT THE STORMWATER RATES A MONTH OR TWO AGO, IT WAS CATEGORIZED AS STORMWATER REVENUE.
YOU KNOW, AND THE DIFFERENT FEES THAT WE WERE PROPOSING TO POSSIBLY CHARGE.
I JUST WAS CURIOUS WHAT THAT WOULD LOOK LIKE IN HERE FROM THAT WHETHER IT'S ADDITIONAL REVENUE.
IF IT WAS FLAT, WHATEVER IT MIGHT BE, I JUST DIDN'T SEE THE REVENUE ASPECT.
I KNOW THE SIP IS LATER, BUT I'M JUST CURIOUS ABOUT THE REVENUE SIDE.
>> THIS REFLECTS COREY, IS IT, LIKE 0.41 OR A VERY SMALL STORM DRAINAGE RATE.
LATER ON IN THE BUDGET PROCESS, WE WILL BRING TO COUNCIL, PERHAPS IN THE PROPOSED BUDGET, THE RATES THAT YOU SAW FROM THE NEW GEN STUDY, WE TALKED ABOUT FIVE, SIX, HOW DO WE GET CLOSER TO OUR PEERS? THAT WOULD SHOW UP LATER ON. IT'S NOT NEAR.
>> I DON'T THINK I HAVE ANY OTHER. NO, I'M GOOD. THANK YOU.
>> CREDIT CARD PROCESSING FEES.
COMING OR DURING THE COVID, WE EXTENDED THOSE OPTIONS TO OUR RESIDENTS TO TRY TO MAKE PAYMENTS EASIER BY BEING ABLE TO PUT YOUR WATER BILL ON YOUR CREDIT CARD, BUT I WAS THINKING THAT WAS JUST GOING TO BE A SHORT TERM THING ON THERE.
IF I LOOK AT MOST GOVERNMENT ENTITIES, LIKE, FOR EXAMPLE, PROPERTY TAX, I CAN'T PUT MY PROPERTY TAX ON A CREDIT CARD WITHOUT PAYING ABOUT A 3 OR 4% FEE THAT THEY CHARGE ON TOP OF IT.
GENERALLY, THE WAY THAT I'VE ALWAYS SEEN GOVERNMENT WORK, IRS, ANY PARTICULAR ENTITY IS, YOU PAY WHAT YOU OWE THE GOVERNMENT, AND THEN YOU'RE ALSO PAYING THE BANK IF YOU WANT TO PUT IT ON CREDIT CARD.
I TAKE IT, THIS IS GOING ACROSS THE BOARD AS WELL, NOT JUST THE WATER BILLS OR UTILITY BILLS, RATHER, BUT ALSO OUR BUILDING PERMITS AND EVERYTHING ELSE.
I USED TO BE PEOPLE WERE ENTICED TO SIGN UP FOR DIRECT WITHDRAWAL FROM THEIR BANK ACCOUNT, BECAUSE IT WAS VERY CHEAP.
SOMETIMES ALMOST NOTHING ON THERE.
NOW, SOMEBODY SIGNING UP, THEY HAVE NO INCENTIVE TO PUT THEIR BANK ACCOUNT INFORMATION AND GIVE THE CITY A LOWER RATE.
IN FACT, MOST PEOPLE PROBABLY WANT TO GO AHEAD AND JUST PUT IT ON THEIR CREDIT CARD SO THEY CAN GET POINTS AND THINGS LIKE THAT.
WHERE IS SACHSE COMPARED TO OTHER CITIES WITH CHARGING CREDIT CARD FEES.
IS THIS SOMETHING THAT WE CAN CONSIDER, PHASING BACK OUT AND MAYBE CLIMB BACK OUT AND CHARGE 1% THIS YEAR AND 2% UNTIL WE'RE RECOUPING THE FEES AS COSTING FOR CREDIT CARD.
>> IT WAS A TOPIC OF DISCUSSION.
THE CITY MANAGER'S OFFICE HAS ASKED ABOUT THIS, AT LEAST TO PROVIDE THE INFORMATION.
WE WERE HAPPY TO COME BACK TO COUNCIL WITH MORE INFORMATION.
YES, WE ARE STILL FOLLOWING THE POLICY? THOSE COVID TIME POLICIES OF HELPING PAY RESIDENT CREDIT CARD FEES.
>> I'M DEFINITELY VERY INTERESTED IN SOME MORE NUMBERS, HOW MUCH IS IT COSTING US? FOR EACH OF THE DEPARTMENTS AND ALSO WHAT FEES WE'RE PAYING AND WHAT OTHER CITIES ARE DOING, IS IT'S JUST THE NEW NORM LIKE EVERY EVERYTHING ELSE, AND THIS IS WHAT WE SHOULD BE DOING OR OTHER CITIES NOT DOING IT.
ANY MORE INFORMATION WE CAN GET ON THERE IN FUTURE MEETINGS WOULD BE APPRECIATED. WE'LL DO IT.
>> ANY OTHER QUESTIONS ON THIS SECTION BEFORE WE MOVE ON, DUDE.
CIP. AGAIN, WE COULD ALWAYS COME BACK, AND WITH THAT, WE'LL MOVE ON TO CIP.
[00:45:10]
>> GOOD EVENING, MAYOR, COUNCIL. WELL, HERE WE ARE.
THIS IS LIKE CHRISTMAS FOR ME HERE, SO WE'RE GOING TO GO THROUGH A BUNCH OF STUFF HERE AND SHOW YOU WHAT WE'VE DONE OVER THE PAST YEAR.
TALK ABOUT A LITTLE BIT ABOUT THE PACER STUFF THAT EVERYBODY'S INTERESTED IN.
WE'LL GO THROUGH PROJECT UPDATES, ALSO DO SOME PROJECT RECOMMENDATIONS, AND THEN WE'LL TALK ABOUT SOME FUTURE FUNDING OPTIONS FOR SOME OF THE LARGER PROJECTS.
AGAIN, CITY CHARTER REQUIRES US TO DO A CAPITAL IMPROVEMENT PLAN, A CIP PLAN EVERY SIX YEARS, WHICH IS THE CIP IS THE ACTUAL ONE YEAR BUDGET, AND THEN THE CAPITAL IMPROVEMENT PLAN IS ACTUALLY FIVE YEARS.
THAT'S WHY YOU GET THE SIX YEAR NUMBER ON THAT.
AGAIN, CIP IS SUPPORTED THROUGH VARIOUS FUNDING STREAMS. MAJOR FUNDING SOURCES ARE WATER SEWER REVENUE LIKE WE JUST TALKED ABOUT DRAINAGE FEES AND ALSO OUR ROADWAYS.
AGAIN, IN EACH AREA, THE CITY MUST ADDRESS OPERATIONS AND MAINTENANCE AS WELL AS FORECASTING FUTURE REPLACEMENTS AND ACCUMULATED DEPRECIATION.
THINGS GET OLD, THINGS WERE OUT.
THOSE THINGS OVER TIME COST MORE THAN THE ONE THEY DID ORIGINALLY.
WE HAVE TO ACCOMMODATE THAT IN OUR OPERATING BUDGET.
THIS LAST BULLET POINT. AGAIN, WE'RE MUCH LIKE EVERY OTHER CITY IN THE METROPLEX.
WE HAVE SUBDIVISIONS THAT ARE INCREASING IN AGE WOOD BRIDGE WE TALKED ABOUT THAT DAY, WHICH BRIDGE EACH AWAY WAS 1990S.
THAT'S A 35-YEAR-OLD SUBDIVISION.
NOW. AGAIN, WE'VE DONE MAINTENANCE THROUGHOUT THAT PROJECT, BUT CERTAINLY TRYING TO CATCH UP ON 35 YEARS OF PROJECTS AND MAINTENANCE.
THAT'S A HUGE ASK FOR US TO UNDERTAKE.
AGAIN, THE MAGNITUDE OF THESE INFRASTRUCTURE NEEDS ARE SIGNIFICANT.
WE CANNOT PAY FOR THINGS AS YOU GO.
THEN WE'LL TALK ABOUT THAT HERE IN A SECOND.
THIS $208 MILLION, THAT IS BASICALLY EVERYTHING THAT'S IN THE FIVE YEAR CIP.
THAT'S WATER, SEWER, DRAINAGE, AND ROADWAY PROJECTS.
THAT'S JUST A SNAPSHOT OF WHAT WE'VE ESTIMATED IN THE NEXT FIVE YEAR CIP.
WE HAVE 130 LANE MILES OF CONCORD STREETS AND ALLEYS.
WE HAVE 21 LANE MILES OF ASPHALT STREETS, AND WE DID A QUICK CALCULATION ON THAT.
THAT'S ROUGHLY FOR A ONE MILE OF RESIDENTIAL STREET IS $2.1 MILLION TO FIX ONE MILE OF ROAD.
I'LL JUST HERE IN A SECOND HOW THAT TRANSLATES.
THIS IS JUST SOME GRAPHICAL INFORMATION SO YOU GUYS CAN UNDERSTAND OR WHAT THAT LOOKS LIKE.
A PASER RATING OF ONE IS A RELATIVELY GOOD STREET, LIMITED CRACKING, NO DAMAGE, WHATEVER.
IN ORDER TO REPLACE ALL THAT, THAT'S ROUGHLY $90 MILLION BASED ON THE NUMBERS FROM THE PREVIOUS SLIDE.
TO FIX ALL THE STREETS THAT ARE PASER RATING OF TWO, THAT'S 46 LINE MILES.
THAT IS ROUGHLY $112 MILLION TO FIX THAT JUST THAT CATEGORY OF STREET.
>> AGAIN, HERE'S A PACER RATING OF THREE.
AGAIN, YOU CAN SEE JUST FROM THE PICTURE.
CONCRETE IS IN RELATIVELY GOOD SHAPE, BUT WE DO HAVE SOME PANELS THAT HAVE COLLAPSED, A MAJOR CRACKING, OBVIOUSLY HOLD WATER.
WE HAVE 52 LANE MILES OF ROADS.
AGAIN, THAT IS ROUGHLY $126 MILLION TO FIX THOSE.
AND THEN YOU SEE THE PASER RATING OF FOUR IS 14 MILES, THAT'S BASICALLY A FAILED SECTION.
THEN THAT ENDS UP COSTING MILLION.
JUST TO FIX THE PASER RATINGS OF THREE AND FOUR IS $160 MILLION OF FUNDING THAT WE WOULD REQUIRE TO HAVE.
WE TALK ABOUT THE AVERAGE PER LANE REPLACEMENT FOR 1 MILE.
IT'S 2.1, BUT THAT'S FOR CONCRETE.
>> IT'S ALMOST THE SAME PRICE.
>> I CAN GET THAT SPECIFICALLY FOR YOU.
BUT WE'VE PRICED THOSE OUT, THE COST OF ASPHALT IS ALMOST EXACTLY THE SAME.
>> I THOUGHT YOU'RE GOING SAY LESS, BUT ALMOST THE SAME PRICE.
>> AGAIN, THERE'S PROS AND CONS.
THERE'S A LOT OF TECHNICAL STUFF WE COULD GO THROUGH ON THAT.
BUT GENERALLY, IT'S ABOUT THE SAME PRICE.
>> WHY WOULD WE EVER PUT ASPHALT BACK DOWN? OKAY. THAT'S A THEORETICAL QUESTION.
>> AGAIN, SO THIS IS A LITTLE BIT OF AN OVERVIEW.
AGAIN, WE ARE COMMITTED TO AND AGAIN, BASED ON THE COUNCIL'S DIRECTION TO FOCUS ON INFRASTRUCTURE.
WE ACKNOWLEDGE THAT THE PRIOR PAGE EGO STRATEGIES ARE NOT SUFFICIENT TO ACCOMPLISH THESE TASKS.
THERE'S NO WAY WE COULD GET ENOUGH REVENUE FOR $160 MILLION WITHOUT SOME FORM OF BOND PROGRAM OR SOMETHING LIKE THAT, SOME MAJOR PROGRAM TO DO THAT.
AGAIN, WE'LL TALK ABOUT THIS A LITTLE BIT MORE.
DEBT INSTRUMENTS WILL PLAY A CRITICAL ROLE IN
[00:50:03]
SOLVING OUR INFRASTRUCTURE NEEDS MOVING FORWARD.THIS IS A LITTLE BIT OF OUR SUMMARY OF WHAT WE'VE DONE OVER THE LAST YEAR.
WE'VE COMPLETED A BUNCH OF PUMP STATION PROJECTS.
YOU GUYS DON'T SEE THAT VERY OFTEN, BUT THERE'S A LOT OF WORK DONE BEHIND THE SCENES WITH OUR TEAM THAT ACCOMPLISHED THIS LIST.
THE PROJECTS WE HAVE IN PROGRESS, HAVE WHAT WAS CALLED THE MUDDY CREEK SEWER LINE.
THAT GOES FROM SAX TO PLEASANT BASICALLY THE EAVIEW.
THAT'S ALSO PART OF THE SOUTHEAST SEWER EXPANSION.
WE'RE DOING A BUNCH OF PIPE BURSTING ON THIRD STREET RIGHT NOW.
THAT'S ABOUT TO BE WRAPPED UP.
WE JUST STARTED A PUMP STATION PROJECT AT THE PUBLIC WORKS PUMP STATION.
REPLACING ALL THE PUMPS ON THAT THING, SO THAT'S A 4 MILLION TO $5 MILLION PROJECT.
THEN WE'RE CURRENTLY WORKING ON THE UTILITY MASTER PLAN UPDATES.
>> CITY HALL. PUBLIC SAFETY GENERATOR IS NOT ON HERE.
IS THAT BECAUSE WE HAVEN'T RECEIVED IT YET? IT'S BEEN ORDERED, CORRECT? WE APPROVED THE FUNDING.
>>NO, THAT'S THE VERY FIRST ONE.
>> IT SAYS PUBLIC WORKS PUMP STATION.
>> BUT THERE'S ONE FOR HERE AS WELL, CORRECT?
WE'VE ORDERED IT. WE DON'T HAVE IT YET.
>> IS THAT WHY IT'S NOT IN PROGRESS BECAUSE WE DON'T HAVE IT.
OKAY. JUST CHECKING. DIDN'T KNOW.
>> ROADWAY PROJECTS, AGAIN, WE'VE COMPLETED A BUNCH OF OVERLAYS THIS LAST YEAR.
ACTUALLY, THIS WEEK, YOU'LL SEE THEY FINISHED UP THE MERRIT ROAD PANEL REPLACEMENT.
THE BARRICADES SHOULD BE COMING DOWN THIS WEEK JUST IN TIME FOR SCHOOL TO START.
IN PROGRESS, WE HAVE THE 2025 ANNUAL CONCRETE CONTRACT.
CONTRACTORS HAVE STARTED WORKING ON THOSE PROJECTS LISTED UP THERE.
AGAIN, WE'RE JUST IN THE INFANCY OF THAT, BUT ALL THOSE PROJECTS ARE SCHEDULED TO BE REPLACED HERE IN THE NEXT YEAR.
OF COURSE, BAILEY ROAD, SACHSE ROAD PHASE 2 IS UNDER DESIGN, WEST CREEK, WOOLFORD.
THOSE ARE WE'LL GOOD HERE IN A SECOND.
THOSE ARE ABOUT 30% COMPLETED WITH THE DESIGN, AND WE'VE ALSO ALMOST COMPLETED DESIGN OF OLD BEN DAVIS ROAD AND WOODBRIDGE PARKWAY.
AGAIN, ROADWAY RECOMMENDATIONS FOR THE NEXT YEAR, WE'RE GOING TO CONTINUE WITH THE 2021 BOND PROJECT LIST ON THE PREVIOUS SLIDE.
WE'RE ALSO GOING TO START CONSTRUCTION ON THE WOODBRIDGE PARKWAY PROJECT.
AGAIN, BASED ON OUR CURRENT OPC OPINION OF PROBABLE COST, THAT PRICE HAS WENT UP ABOUT $400,000 IN THIS LAST YEAR, YOU'LL SEE THAT IN THE BUDGET COMING FORWARD.
ALSO, WE'RE ASKING FOR ANOTHER 250,000 FOR MISCELLANEOUS STREET REPAIRS.
WE'RE ALSO GOING TO UNDERTAKE A MAJOR SIDEWALK REPLACEMENT PROJECT IN HIGHLAND CREST.
THEN ALSO, WE'RE WORKING ON A GIS SYSTEM IMPROVEMENTS THAT AFFECTS SEVERAL DEPARTMENTS.
BASICALLY, IT'S COLLECTING ALL OF OUR ASPHALT INFORMATION, WATER LINE SIZE, SEWER LINE SIZES, AND PUTTING THAT HAVEN AND CONSULTANT PUT ALL THAT INFORMATION TOGETHER, ACTUALLY GIVE US A BETTER FUNCTIONING GIS SYSTEM.
RIGHT NOW, WHEN OUR GUYS DO LINE LOCATES.
THEY ACTUALLY HAVE TO PULL UP PAPER COPIES AND STUFF LIKE THAT TO FIND OUT WHAT THE TRUE WATER LINE SIZES OR SEWER LINE SIZES AND SO IF WE CAN GET THAT IN THE DIGITAL FORM, THEY GO THROUGH WITH THEIR IPADS OR CELL PHONES AND HAVE ACTUAL ON THE GROUND INFORMATION.
THAT'S WHAT THIS IS WORKING TOWARDS AS FAR AS A AN INTERNAL PROJECT.
AGAIN, UTILITY PROJECTS RECOMMENDATION, WE'RE GOING TO DO OUR ANNUAL WATER TANK CLEANING.
WE'RE ALSO GOING TO DO A PROPOSED INDUSTRIAL WATER LINE UPGRADE.
AGAIN, WE TALKED ABOUT THE PUBLIC WORKS PUMP STATION THAT'S STARTING CONSTRUCTION RIGHT NOW.
THE SEWER REHAB AT 78 AT OLD CITY HALL, WE HAVE TO BORE A SEWER LINE UNDER THE RAILROAD AND HIGHWAY 78.
THAT'S A LITTLE BIT OF A COMPLICATED PROJECT, BUT WE'RE GOING TO START THAT ONE HERE NEXT YEAR OR THIS YEAR.
AGAIN, FOR DRAINAGE PROJECTS, WE HAVE A CORNWALL STREET DRAINAGE PROJECT FOR CONSIDERING.
YOU'LL SEE SOME PICTURES OF THAT IN A SECOND.
ONE WE FOUND LAST WEEK, OR I GUESS THE BEGINNING OF JULY WAS THE SANFORD PARK DRAINAGE PROJECT.
YOU'LL SEE A PICTURE OF THAT HERE IN A SECOND.
ALSO, DALLAS COUNTY IS WORKING WITH THEM TO TAKE OVER WILLOW LAKE MAINTENANCE.
THAT HAS NOT BEEN FINALIZED YET, BUT THAT'S SOMETHING THAT WE'RE GOING TO HAVE TO BE DOING AS THE YEARS PROGRESS.
HERE'S AN EXAMPLE OF THE CORNWALL DRAINAGE.
THAT INLET THERE, AS YOU CAN IMAGINE, LEAVES AND DEBRIS AND THINGS GET PLUGGED ON TOP OF THAT, AND THEN THAT CAUSES THAT AREA TO FLOOD AND BACK UP AND HOLD WATER.
WE'RE GOING TO REPLACE THAT INLET AND THEN THAT'S THE HALBER AND CLEAN UP THAT CHANNEL AND MAKE THAT WHOLE AREA DRAIN A LITTLE BIT BETTER.
THIS IS THE DAVE STANFORD ONE.
THAT PICTURE ON THE RIGHT IS FROM JULY 8TH.
YOU CAN SEE FROM THE OTHER PICTURE THAT THE WATER IS BASICALLY GOING UNDER THAT CONCRETE RIP WRAP, IT'S NOT GETTING INTO THE CULVERT, AND THAT'S WHAT CAUSED ALL THAT WATER TO BACK UP.
THAT'S THE STREET NEXT TO THE PARK.
THAT'S WHEN WE'RE GOING TO, TRY TO FIX.
[00:55:07]
AGAIN, ONGOING PROJECTS, RECOMMENDATIONS.WE'RE GOING TO CONTINUE WORKING ON THE SURFACE CENTER.
YOU'LL BE SEEING SOME STUFF COME THROUGH THIS NEXT MONTH HERE ON THAT.
AGAIN, CITY FACILITY MAINTENANCE AND REPAIRS, MISCELLANEOUS ONGOING PROJECT WITH THAT.
ALSO FOR THE PARKS DEPARTMENT, WE'RE GOING TO HAVE SOME HERITAGE PARK IMPROVEMENTS.
IT'S CALLED THE PROPOSAL TO COMPLETE THE POOR IN PLACE TREATMENT.
I'LL SHOW YOU SOME PICTURES OF THAT.
THIS IS OUT OF MY EXPERTISE, BUT THIS IS WHAT LANCE AND HIS TEAM WILL BE WORKING ON, SO THAT'S THE PLAYGROUND SURFACE THAT THEY'RE GOING TO BE PROPOSING ON THE LEFT.
THEN THIS IS THE UPPER LEVEL PLAYGROUNDS.
DID I GET THAT RIGHT? YOU DID.
THERE'S MORE PICTURES OF THAT.
AGAIN, WE TALKED ABOUT FUTURE FUNDING.
AGAIN, THE MAJORITY OF THE AVAILABLE FUNDS FOR 2026 ARE GOING THROUGH CURRENT PROJECTS.
FUTURE PROJECTS HAVE TO BE RESCHEDULED OR DELAYED JUST DUE TO LACK OF REVENUE OR APPROPRIATE FUNDING.
AGAIN, CURRENT GENERAL FUND ALLOCATIONS ARE INADEQUATE TO MAINTAIN CURRENT ROADWAYS WITHOUT FALLING BEHIND OR WORSENING STREET CONDITIONS.
AGAIN, THAT LAST SLIDE IS $160 MILLION STREET PROJECTS JUST FOR PACER RATINGS OF THREE AND FOUR.
THAT DOES NOT INCLUDE ANY UTILITY PROJECTS.
JUST TO SUMMARIZE THE PAGE GO.
AGAIN, IT TAKES US SEVERAL YEARS TO ACCUMULATE ENOUGH REVENUE TO DO ONE MAJOR MIDDLE SIZE PROJECT.
RECENT STATE LEGISLATURES HAVE CHANGED SOME OF THE LAWS THAT WE HAVE REGARDING FUNDING OPPORTUNITIES, AND SO AGAIN, THAT GREATLY LIMITS WHAT WE CAN DO IN THE FUTURE.
AGAIN, ONE OF THE OTHER OPPORTUNITIES WHICH WE DID IN 2021 IS CONSIDERATION OF A BOND.
AGAIN, THAT PROVIDES US AN OPPORTUNITY FOR ENHANCED COMMUNITY PROJECTS, LARGER PROJECTS, BIGGER PROJECTS.
AGAIN, AS DAVID MENTIONED, ALSO, IT WILL BE POSSIBLE WITH SOME ISSUANCE OF SOME DEBT.
WE HAVE THE CAPACITY TO DO THAT.
THAT'S PRETTY QUICK, BUT WITH THAT, I'LL BE HAPPY TO ANSWER ANY QUESTIONS.
>> THANK YOU, MR. NESBIT. QUESTIONS OR COMMENTS FROM COUNCIL, MS. BUHLER.
>> WILL YOU BE GOING OVER THE EARLY DRAFT OF THE CAPITAL IMPROVEMENTS PLANS LATER ON IN THE PRESENTATION?
>> CAN I ASK A QUESTION ON THAT?
>> SHOULD WAIT TO ANOTHER MEETING.
ON PAGE 335 OF OUR PACKET, IT'S ALL THE WAY IN THE BACK? IT SAYS MERRIT ROAD REALIGNMENT AND WIDENING, AND IT SAYS NEW REQUESTS FOR $30 MILLION IS THAT JUST FUNDS COMING FROM OTHER SOURCES?
>> THAT'S THE TEXT GRANT PORTION OF THAT.
>> I ASSUME THAT'S WHAT THAT WAS.
THEN I HAD ONE MORE, WHICH WOULD BE THE MAXWELL CREEK PUMP STATION.
I KNOW WE JUST COMPLETED THAT PROJECT, BUT IT LOOKS LIKE WE'RE GOING TO NEED 1.1 MILLION DOLLAR AGAIN IN THREE YEARS FOR THAT.
>> THAT'S FOR THE GROUND STORAGE TANK PAINTING.
>> FOR THE RESTORATION AND NOT GETTING REST OFF OF IT AND ALL THAT KIND OF THING.
>> YES. FOR THE EXISTING GROWN STORAGE TANKS.
>> OTHER QUESTIONS FROM COUNCIL ON THIS SECTION, MAYOR PRO-TEM FRANKS?
>> NOT A QUESTION, BUT A COMMENT.
YOU TALKED ABOUT STATE LAW CHANGES IN FUTURE FUNDING SOURCES.
WE HAVE A CURRENT ROAD THAT'S, IN MOST PEOPLE'S EYES SITTING IDLE.
IT WAS SUPPOSED TO TAKE FOUR YEARS, IT TAKES 10.
IF WE LOSE SOME SOURCES, AND WE DO HAVE SOME OTHER SOURCES, WE'RE STILL NOT ALWAYS IN CHARGE, AS WE'RE ALL FRUSTRATED WITH MERRIT ROAD. I'LL JUST SAY IT.
BUT THOSE ARE SOME OF THE THINGS WE DO, BUT LIKE YOU SAID, WE'RE GOING TO COME UP WITH 25 OR $30 MILLION TO PAY FOR THE ROAD OURSELVES.
WE'RE GOING TO EITHER GOING TO HAVE A LARGE BOND OR WERE GOING TO HAVE TO DO SOME KIND OF PARTNERSHIP, SO JUST THE COMMENT.
>> OTHER QUESTIONS OR COMMENTS ON THIS SECTION? AGAIN, IF YOU HAVE THOUGHTS LATER, WE CAN COME BACK TO THAT, BUT SEEING NO OTHER QUESTIONS, WE WILL MOVE ON TO OUR COMPENSATION UPDATE. I BELIEVE THAT'LL BE MS. NESBIT.
>> YES. MAYOR AND COUNCIL, I'M GOING TO WALK THROUGH WHAT I MENTIONED EARLIER IN THE PRESENTATION ABOUT WHICH COMPENSATION RECOMMENDATION ACTUALLY I AM MAKING, WHICH IS OPTION 3B.
AS YOU KNOW, WE PRESENTED THOSE OPTIONS TO
[01:00:02]
YOU OVER A COUPLE OF COUNCIL MEETINGS IN THE LAST FEW MONTHS.THE COUNCIL HAD ASKED IF WE COULD POTENTIALLY LOOK AT A LEAD MARKET POSITION OR A MATCH MARKET POSITION, AND MY RECOMMENDATION IS THE MATCH MARKET POSITION OPTION 3B.
THIS SLIDE OUTLINES WHAT THAT MEANS IN TERMS OF REAL DOLLARS.
EMPLOYEES WOULD MOVE TO THE MINIMUM OF THEIR ASSIGNED PAY GRADE.
IF THEIR CURRENT SALARY IS BELOW THAT AMOUNT, THEY WOULD GET A 3% ADJUSTMENT FOR EACH YEAR IN THEIR POSITION, CAPPED AT EIGHT YEARS FROM THE NEW PROPOSED MINIMUM.
ANY EMPLOYEES WHOSE CURRENT SALARY IS GREATER THAN THE CALCULATION WOULD RETAIN THEIR EXISTING SALARIES.
JUST A COUPLE OF CAVEATS TO POINT OUT, PUBLIC SAFETY, WHICH IS POLICE AND FIRE, WOULD RETAIN THEIR CURRENT STEP, AND THEY WOULD ACTUALLY BE IN A LEAD MARKET POSITION.
THE REST OF THE EMPLOYEES WOULD NOT.
THIS SCENARIO IS REALLY MEANT TO HELP ALLEVIATE COMPRESSION BY MOVING OUR EMPLOYEES INTO THAT NEW RANGE RELATIVE TO THEIR TIME IN THE POSITION, WHICH ALSO ENSURES THAT NO ELIGIBLE EMPLOYEE WOULD RECEIVE LESS THAN A 3% ADJUSTMENT.
THIS OPTION, AGAIN, ADJUSTS ALL EMPLOYEES TO THE APPROPRIATE DEPTH AND RANGE WITHIN THE NEW PAY PLAN, SO MAKING SURE THAT THEY MAINTAIN THEIR YEARS OF SERVICE AND OR STEP AND ENSURES THAT THOSE EMPLOYEES WOULD RECEIVE NO LESS THAN 3% ADJUSTMENT.
REALLY, THIS RECOMMENDATION FROM ME, I BELIEVE IT IS REALLY THE MOST COMPREHENSIVE AND IMPACTFUL OPTION.
THAT IS WHY I AM RECOMMENDING THAT FOR FUNDING AS A MATCH MARKET POSITION.
YOU CAN SEE HERE HOW THAT ACTUALLY WORKS OUT IN TERMS OF DOLLARS AND CENTS.
I'M NOT SURE WHY THE LITTLE RED BOX GOT MESSED UP BECAUSE IT WAS PERFECTLY THERE [OVERLAPPING] THE OTHER DAY.
YES. WHAT YOU'LL SEE THERE IS WHERE THE RED BOX IS SUPPOSED TO BE IS AT THE TOP, YOU'LL SEE THE GENERAL FUND TOTAL AT $1.595965 MILLION, AND THEN ALL THE WAY TO THE RIGHT, THE GRAND TOTAL BECAUSE IT WOULD HAVE TO INCLUDE THE UTILITY FUND AND THE EDC.
THAT IS THE ONE I'M RECOMMENDING, WHICH IS THE OPTION 3B MATCH MARKET UP THE TOP.
THE ONE AT THE BOTTOM IS THE OPTION 3B LEAD MARKET.
AGAIN, I WANT TO MAKE SURE THAT I EMPHASIZE THAT PUBLIC SAFETY, POLICE AND FIRE, BOTH OF THESE WOULD GET THEM THE SAME AMOUNT.
IT'S A LEAD MARKET FOR BOTH OF THEM, WHERE YOU SEE THE CHANGE IS WHEN YOU COME TO THE NON SWORN EMPLOYEES, AND THAT'S THE REDUCTION IN THE DIFFERENCE BETWEEN OPTION 3B MATCH MARKET AND THE OPTION 3B LEAD MARKET.
ALSO, TO MAKE SURE THAT EVERYBODY UNDERSTANDS, THERE'S AN ASTERISK TO THE RIGHT OF THIS SLIDE THAT SAYS ANNIVERSARY STEPS, A 2% TOP OUT LUMP SUM, AS OPPOSED TO WHAT IS RIGHT NOW, 1%.
WE ARE RECOMMENDING A 2% TOP OUT LUMP SUM, AND THIS IS SPECIFICALLY FOR PUBLIC SAFETY, AND ADJUSTMENT TO THE MARKET AVERAGE INCENTIVE AND EDUCATION PAY.
THOSE ARE ALL INCLUDED IN THESE NUMBERS.
THIS IS AN ALL INCLUSIVE SET OF NUMBERS HERE.
AGAIN, I'M RECOMMENDING THE TOP SET OF NUMBERS, THE OPTION 3B MATCH MARKET.
AGAIN, I BELIEVE THIS IS REALLY THE MOST COMPREHENSIVE OPTION FOR ALL OF OUR EMPLOYEES AND IT'S REALLY THE MOST SUSTAINABLE FOR OUR FUTURE.
AS YOU'VE SEEN, WITH THE REVENUE PROJECTIONS EARLIER IN THE PRESENTATION IN TERMS OF OUR FINANCIAL POSITION, AT LEAST IN THE NEXT FIVE YEARS AND BEYOND, REALLY, WE'RE NOT IN A POSITION WITH OUR CURRENTLY AVAILABLE FUNDS TO ADOPT A LEAD MARKET.
WE AGAIN NEED TO BE BUDGETING CONSERVATIVELY AS OUR GROWTH IS LEVELING OFF, AND AS A RESULT, I REALLY BELIEVE THAT YOU SHOULD CONSIDER THE OPTION 3B MATCH MARKET.
WE DO HAVE THE ABILITY TO FUND THIS PROPOSAL AND IT'S ENTIRELY WITH OUR EXISTING REVENUES.
AGAIN, A TOTAL COST TO THE GENERAL FUND FOR IMPLEMENTATION OF $1,595,965.
>> YOU CAN SEE IT HERE MUCH TIGHTER SUMMARIZED.
JUST GOING BACK A LITTLE BIT, WHEN WE TALKED ABOUT ALL OF THE OPTIONS, ORIGINALLY, YOU CAN SEE THERE OPTIONS 1,2,3, AND 3B.
YOU CAN SEE THE COST OF THOSE OTHER OPTIONS THAT WERE DISCUSSED BACK IN THE BIGGER CHILLY PRESENTATIONS.
I'M GOING TO PAUSE HERE, MAYOR, JUST BECAUSE THERE'S A LOT.
>> YES. QUESTIONS ON THE COMPENSATION UPDATE.
>> HOW DOES THIS LOOK MOVING FORWARD? WILL THIS ALWAYS UTILIZE ALL THE FUNDS THAT WE USUALLY USE FOR SUPPLEMENTAL REQUEST, OR WILL WE GET BACK TO A POINT WHERE WE'LL HAVE SUPPLEMENTAL REQUEST?
>> YOU MEAN THIS SECTION WE ARE ABOUT TO DISCUSS?
>> I THINK WHAT YOU'RE ASKING IS,
[01:05:03]
BY UTILIZING ALL OF THOSE FUNDS, WOULD WE EVER GET IN A POSITION AGAIN TO BE ABLE TO FUND SUPPLEMENTAL REQUESTS? WELL, AT THIS POINT, WE ARE REALLY AT A FLAT GROWTH AS WHAT WE'RE PROJECTING.I DO SEE US HAVING SOME MORE GROWTH OVER THE NEXT SEVERAL YEARS.
IT'LL BE MUCH MORE MODEST THAN WE'VE HAD IN THE PAST.
YOU WILL NOT BE SEEING THE GROWTH OF SUPPLEMENTAL REQUESTS MOVING FORWARD THAT WE'VE BEEN ABLE TO FUND IN THE PAST.
>> WILL WE BE ABLE TO BUDGET WHERE DEPARTMENTS NEED NEW EMPLOYEES IN FUTURE YEARS? OR THIS KIND OF, EFFECTIVELY.
>> [OVERLAPPING] POTENTIALLY, BUT BECAUSE WE'RE NOT GROWING THAT MUCH MORE, WE PROBABLY ARE GOING TO BE IN A SITUATION WHERE WE COULD MAYBE OFFSET EMPLOYEES, AS WE CHANGE AND AS WE LEVEL OUT FROM A HIGH GROWTH COMMUNITY TO MORE OF A MAINTENANCE COMMUNITY, WE MAY RETOOL SOME EXISTING POSITIONS BECAUSE WE'RE NOT GOING TO NEED SOME OF THEM, AS MUCH AS FOR AN EXAMPLE, WHAT COUNCILMAN FRANKS ASKED EARLIER ABOUT THE COSTS WITH DEVELOPMENT FEES, AND THEN THE OFFSETTING COSTS OF USING BUREAU VERITAS.
RIGHT NOW, WE'RE USING CONTRACT EMPLOYEES INSTEAD OF FILLING POSITIONS BECAUSE WE'RE NOT SEEING THE GROWTH, AND SO WHILE WE HAVE LOWER REVENUES, WE'RE LOWERING OUR EXPENDITURES AS A RESULT OF THAT.
BUT, JUST TO BE DIRECT, WE'RE NOT GOING TO SEE THE GROWTH THAT WE'VE SEEN IN PREVIOUS YEARS.
AND SO THERE WILL BE MUCH MORE MODEST REQUESTS THAT YOU'LL BE ABLE TO FULFILL MOVING FORWARD.
>> SO REGARDING OUR SALARY SURVEY, LET'S JUST SAY HYPOTHETICALLY, RIGHT NOW, PUBLIC SAFETY IS ROLLING INTO A LEAD.
BASED ON THE STUDY THAT WE'VE ALREADY PAID FOR AND HAVE, AND THEY'VE GIVEN US ALL THESE TOOLS, NEXT YEAR, WOULD WE BE ABLE TO AT LEAST ENTERTAIN THE IDEA OF HOW THE NUMBERS MIGHT WORK TO BRING NONPUBLIC SAFETY INTO LEAD MARKET?
>> YOU'D HAVE TO BASICALLY GO BACK TO THE DRAWING BOARD AND REDO THE STUDY AND EVERYTHING ELSE?
>> WELL, THE STUDY STAYS AS IT STANDS.
IN OUR ESTIMATION, AND TYPICALLY A COMPENSATION STUDY IS GOOD, FOR FIVE YEARS, HOPEFULLY, 10, BUT USUALLY FIVE YEARS, AND THAT WE WOULD BE ABLE TO GIVE MODEST MATCH MARKET INCREASES MOVING FORWARD, THAT WE WOULDN'T BE ABLE TO BE IN A POSITION WITH THE OTHER NON-SWORN EMPLOYEES TO PUT THEM IN A LEAD MARKET.
UNLESS OTHER CUTS WERE MADE IN THE BUDGET TO BE ABLE TO ACCOMMODATE THAT.
>> IT'S A COUPLE OF SLIDES BACK THOUGH, BUT THE DIFFERENCE RIGHT NOW IT SEEMS SMALL, AND I DON'T WANT TO MINIMIZE WHAT THAT DIFFERENCE IS.
BUT OUR MAIN CONCERN IS THE COMPOUNDING OF THAT YEAR OVER YEAR ON THERE.
>> I'M THINKING, IF WE TOOK A PHASED IMPLEMENTATION APPROACH.
WE SAID WE'RE GOING TO TAKE SOME OF OUR EMPLOYEES THIS YEAR, GET THEM TO A LEAD MARKET, AND THEN NEXT YEAR BASED ON ALL THE DATA THAT WE KNOW RIGHT NOW, GET THOSE INDIVIDUALS IN THE LEAD MARKET.
THAT WOULD STAGGER AT ALISA A YEAR WHERE WE WOULDN'T HIT THAT COMPOUNDING SO QUICK.
THAT'S JUST NOT REALLY A POSSIBILITY THAT YOU COULD SEE.
>> I DON'T UNLESS, AGAIN, COUNCIL WANTED TO MAKE DECISIONS TO MAKE CUTS OTHER PLACES.
>> CREDIT CARD PROCESSING FEES, MAYBE. [LAUGHTER] I DON'T KNOW.
I'M LOOKING FOR EVERY DIME RIGHT NOW THOUGH, BUT ALL AS IT. THANKS.
>> WELL, I'M JUST GOING TO REPEAT THE THINGS I'VE ALREADY SAID.
I DON'T NECESSARILY SUPPORT GIVING ONE GROUP OF EMPLOYEES A LEAD MARKET AND ONE GROUP OF EMPLOYEES A MATCH MARKET.
THE DIFFERENCE IN 3B MATCH AND LEAD IS 137,000 FROM THE GENERAL FUND, 166,000 OVERALL.
I WOULD THINK. ONE OR ALL OF US COULD FIND THAT SOMEWHERE.
HOW MUCH WERE WE WILLING TO GIVE? I DON'T HAVE THE NUMBERS IN FRONT OF ME BECAUSE I DIDN'T BRING MY BOOK IN, BUT THE 3A LEAD.
I DON'T HAVE THOSE NUMBERS IN FRONT OF ME THE DIFFERENCE, BUT IT WAS LESS THAN $200,000, I RECALL.
I WOULD BE INTERESTED TO SEE THOSE NUMBERS AGAIN BEFORE I SUPPORTED THIS.
>> LAUREN, DO YOU WANT TO COME UP AND POINT OUT BECAUSE I THINK I'M PICKING THE WRONG SLIDE.
I'M GOING TO LET YOU CONTROL THE SLIDES.
>> GOOD EVENING, MAYOR AND COUNCIL. THIS SLIDE SHOWS YOU THE BREAKDOWN
[01:10:01]
FOR EACH OF THE OPTIONS FOR LEAD AND MATCH MARKETS.TO COUNCIL MEMBER FRANK'S POINT LEAD MARKET FOR OPTION 3 IS THE 1.546 MILLION.
IS THAT WHAT YOU'RE REFERRING TO? [BACKGROUND] 1.546130?
IT'S LESS THAN 50,000 OR 50,000-ISH.
>> 3A LEAD COMPARED TO A 3B MATCH.
>> BUT I THINK WE NEED TO MAKE THE DISTINCTION BETWEEN THE DIFFERENCES IN THOSE BECAUSE IF THE WAY THAT THREE WOULD WORK, IF YOU WANTED TO DO IT AS LEAD, THEN NOT EVERYONE IS GOING TO GET A PAY INCREASE.
I'M GOING TO GO SLOW ON THIS, SO I EXPLAIN IT CORRECTLY.
OPTION 3, IN THAT, JUST THE PLAIN OPTION 3 OPTION, EMPLOYEES WOULD MOVE TO THE MINIMUM OF THEIR ASSIGNED PAY GRADE IF THEIR CURRENT SALARY IS BELOW THAT PLUS THREE PERCENT.
NOT EVERYBODY WOULD BE GETTING A PAY INCREASE.
>> IF THEY'RE NOT GETTING A REDUCTION.
>> NO, THEY'RE NOT GETTING A REDUCTION, BUT NOT EVERYBODY WOULD INCREASE.
>> IF THEY OVERPAY COMPARED TO MARKET, THEY'RE GOING TO STAY WHERE THEY'RE AT.
>> YES. [BACKGROUND] THE PRIMARY DIFFERENCE BETWEEN OPTION 3 AND OPTION 3B IS OPTION 3B SETS A FLOOR OF THREE PERCENT FOR EVERY SINGLE EMPLOYEE.
WHEREAS OPTION 3, EVEN AT A LEAD MARKET, THERE WILL BE ABOUT 25% OF THE WORKFORCE WHO DOESN'T GET ANYTHING.
>> WE'RE GOING TO HAVE THE SAME CONVERSATION THREE MONTHS AFTER THE BUDGET CHANGES, AND EVERY CITY AROUND US DOES THIS.
WE'RE GOING TO BE HAVING THE SAME CONVERSATION.
WE'RE NOT GOING TO BE IN THE MIDDLE.
WE'RE NOT GOING TO BE A LEAD MARKET.
WE'RE NOT GOING TO BE A MATCH MARKET.
WE'RE GOING TO BELOW MATCH BECAUSE EVERYBODY'S GOING UP.
EVEN IF IT'S THREE PERCENT COST OF LIVING, EVERYONE'S GOING UP.
>> YOU'RE RIGHT. WE'VE ALWAYS HAD THAT CHALLENGE, THAT'S RIGHT.
>> ANY OTHER QUESTIONS ON THE COMPENSATION UPDATE SECTION? I'M SORRY. MR. PRESTENBERG?
>> YES. IF THIS IS VOTED, THIS WILL GO IN EFFECT WHEN?
>> OCTOBER 1ST, AND THEN THAT'S POLICE AND FIRE WOULD GET IT ON THEIR ANNIVERSARIES OR SOMETHING LIKE THAT SURFS, OR IS IT ALL OCTOBER 1ST?
>> THE PAY PLAN WOULD SHIFT OCTOBER 1ST.
BUT THEN THEY WOULDN'T GET THEIR INCREASES UNTIL THEIR ANNIVERSARY DATES? THEY WOULD GET THE DIFFERENCE AND THEIR CURRENT STEP TO THE NEW STEP IN OCTOBER.
THEN ON THEIR ANNIVERSARY DATE, THEY WOULD GET A FULL STEP.
>> IT'S A TWO STEP PROCESS TO GET THE STEPS.
BECAUSE IT'S A PAY PLAN SHIFT, AND THEN IT'S AN ANNIVERSARY DATE SHIFT FOR PUBLIC SAFETY, FOR ALL OTHER EMPLOYEES, THEY WOULD JUST GET IT IN OCTOBER.
>> MY CONCERN HERE IS THAT, I WANT TO PAY OUR FOLKS AS BEST WE CAN.
WHEN OUR GAP BETWEEN REVENUE AND EXPENSES, I THINK IT WAS 1.6 MILLION OR SOMETHING LIKE THAT FOR THIS YEAR, I THINK BASED ON THE SLIDE THAT HE WAS TALKING ABOUT EARLIER, THIS IS RIGHT OUT THAT DOLLAR AMOUNT, AND THEN ARE WE SEEING A FLAT REVENUE YEAR, BUT NEXT YEAR IS GOING TO BE BETTER? WE'RE ALREADY AT NINE MILLION DOLLARS, I THINK IS OUR GENERAL FUND.
THAT'S WHAT THIS WOULD COME OUT OF.
SPENDING ROUGHLY 18% OF THE GENERAL FUND TO DO A ONE TIME PAY INCREASE.
THAT'S NOT REALLY GOING TO [BACKGROUND].
IT'S A ONE TIME RIGHT NOW FROM THERE ON OUT, IT'S [OVERLAPPING].
>> FOR THE GENERAL FUND, IT'S A ONE TIME.
ANY ADDITIONAL MONEY YOU HAVE FROM EXPENDITURES THAT WE EXCEED.
WE WOULD PUT IT BACK IN A GENERAL FUND AND IT WOULD COME RIGHT BACK OUT, I GUESS ON A MONTHLY BASIS.
IT'S LIKE BETWEEN A ROCK AND A HARD PLACE.
WHEN WAS THE LAST BIG PAY TREATMENT? I GUESS, BECAUSE I KNOW THAT DURING COVID, THERE WAS A CATCH UP, I BELIEVE.
>> WHAT WE'VE DONE, WE DID DO SOME GOOD INCREASES IN 2021 COMING OUT OF COVID.
THEN AFTER THAT, THEY'VE BEEN THREE PERCENT INCREASES OR THE EQUIVALENT OF A STEP FOR PUBLIC SAFETY.
>> CERTAIN JOB FAMILIES WE HAD TO.
THE MAINTENANCE TEXT DISPATCHER.
[01:15:01]
>> WE'VE HAD TO DO THAT WHEN WE WERE FINDING WE COULDN'T FILL POSITIONS.
WE'D GO BACK AND WE WOULD LOOK AT A JOB FAMILY AND SAY, WHAT'S GOING ON WITH THIS? WE'RE NOT GETTING ANY APPLICANTS, AND WE'D SEE THAT WE HAD FALLEN WAY BEHIND IN THE MARKET, SO WE WOULD BRING THAT SPECIFIC JOB FAMILY FORWARD.
WE'VE DONE THAT, LIKE YOU SAID, DISPATCHERS, MAINTENANCE TECHNICIANS, POSITIONS LIKE THAT OVER THE YEARS.
>> THIS IS TELLING ME IS THAT, THE INCREASE THAT HAPPENED IN 2021.
I DON'T KNOW IF THAT GOT US TO MEET OR EXCEED LEVEL FOR A SHORT PERIOD OF TIME.
BUT NOW FOUR YEARS LATER, WE'RE BACK IN A TRAIL.
THIS PUTS US INTO A MEETS AGAIN.
IT TELLS ME IN THREE OR FOUR YEARS WE'RE GOING TO BE IN A TRAIL.
YOU'RE GOING TO START TAKING MOTOR MONEY FROM YOUR GENERAL FUND TO GET CAUGHT.
IT JUST SEEMS A CYCLE THAT IT'S GOING TO BE HARD TO BEAT.
YOU GET IN FRONT OF WHEN, YOUR REVENUES ARE RELATIVELY FLAT.
I GUESS IT'S ONE OF THOSE THINGS THAT IF WE DO IT, IT'S MORE OF, YOU DON'T REALLY GET GOOD GRACES LIKE, YOU DID IT THIS YEAR, THREE YEARS FROM NOW, PEOPLE ARE GOING TO LOOK AT IT, WELL, YOU DID IT THEN, SO WE'RE GOOD NOW.
A LOT OF CONCERNS, BUT I UNDERSTAND THE NEED FOR IT, JUST CONCERNS.
>> I'M BASICALLY IN FAVOR OF THE 3B, MATCH MARKET, AND BASICALLY WHAT WAS JUST MENTIONED, IF WE GO WITH THIS, EVERYBODY GETS A SALARY INCREASE.
IF WE GO WITH THE OPTION 3 LEAD MARKET, 25% OF OUR EMPLOYEES WILL GET NOTHING.
WHEN THEY SHOW UP TO THE GROCERY STORE, YOU'RE NOT GOING TO BE ASKED, DID YOU GET YOUR BIG RAISE THIS TIME, OR DID YOU GET YOUR NO RAISE THIS TIME? IF WE WANT TO KEEP CONTINUITY AMONG ALL EMPLOYEES IN THE CITY, AND YES, OUR FIRST RESPONDERS ARE VERY MUCH NEEDED, VERY MUCH APPRECIATED.
BUT ALSO IN JUST A POINT BLANK, IF YOUR SEWER DOESN'T FLUSH, OR YOU DON'T HAVE ANY WATER IN YOUR HOUSE AND YOU CAN'T WASH YOUR CLOTHES, WHO'S GOING TO COMPLAIN? EVERYBODY. WE WON'T KNOW WHAT OUR FIRST RESPONDERS ARE GOING TO DO UNLESS THERE'S AN EMERGENCY.
I'M NOT BELITTLING IT BY ANY MEANS, BUT I THINK WE HAVE TO TAKE CARE OF EVERYBODY, AND WE HAVE TO SHOW RESPECT FOR EVERYBODY AND THE VALUE OF EVERYBODY.
WE'RE SPENDING THOUSANDS AND THOUSANDS OF DOLLARS UPGRADING OUR PARKS AND RECREATION PROGRAM.
WE NOW WE'VE GOT SOME PARKS THAT CAN BE PROUD OF INSTEAD OF JUST BY NAME ONLY.
WE HAVE TO MAINTAIN THOSE, AND WE HAVE TO KEEP QUALITY PEOPLE IN THAT AREA JUST AS WELL AS WE DO OUR FIRST RESPONDER AREAS.
ALL OF US IN THE CITY COUNCIL HAS HAD AN OPPORTUNITY TO TALK ONE-ON-ONE WITH FIRST RESPONDERS WITHIN THE LAST FOUR OR FIVE WEEKS.
I HAVE REACHED OUT TO SOME PEOPLE THAT HAVE LEFT, AND I'VE ASKED EVERYONE, DID YOU LEAVE BECAUSE OF LACK OF PAY? NOT ONE SAID THAT WAS THE MAIN REASON THAT I LEFT.
>> PIGGYING BACK ON WHAT MR. PRESTENBERG, MAYOR BRETT FRANKS WAS SAYING IS THAT PERSONNEL IS ALWAYS THE MOST CHALLENGING PART OF OUR BUDGET.
IT'S THE BIGGEST PART OF OUR BUDGET.
AND IT DOES GET FRUSTRATING IN A PHILOSOPHICAL SENSE THAT YOU DO THIS AND NEXT YEAR TO YEAR, AFTER YOU GET BEHIND, QUOTE AND QUOTE.
THAT'S ALWAYS GOING TO BE A CHALLENGE.
I DO AGREE WITH MR. MILLSAP THAT 3B, WHAT MS. NASH IS PROPOSING IS THE BEST WAY TO GO.
IT MEANS EVERYBODY GETS AN INCREASE, AND IT'S A CHALLENGING BUDGET ITEM. IT ALWAYS WILL BE.
THERE'S NO EASY SOLUTIONS. I WILL SAY THAT.
ANYTHING ELSE ON THIS SECTION? IF NOT, WE WILL GO TO SUPPLEMENTAL REQUEST.
I BELIEVE MS. NASH. NO, NOT THAT ONE.
>> AS I REFERENCED BEFORE, SUPPLEMENTAL REQUESTS ARE REALLY REQUESTS FOR ANY ADDITIONAL BUDGET.
PROGRAM ENHANCEMENTS, SERVICE ENHANCEMENTS ARE ONE TIME ITEMS THAT ARE ABOVE AND BEYOND THE DAILY MAINTENANCE AND OPERATIONS OF THE BUDGET.
YOU CAN SEE HERE THAT WE HAD 10 REQUESTS FOR THE GENERAL FUND AT OF ABOUT $2.1 MILLION, TWO REQUESTS IN THE UTILITY FUND AT 170,000, ONE REQUEST IN THE EDC OF 8,000, AND IN THE VEHICLE EQUIPMENT AND REPLACEMENT FUND, WE HAD SEVEN REQUESTS OF $488,000.
>> HOLD ON. MAYOR PRO-TEM FRANKS.
>> WELL, I WAS WAITING UNTIL YOU GET TO THE NEXT SLIDE, BUT GO AHEAD. [LAUGHTER]
[01:20:02]
>> I RESERVE THE RIGHT TO TALK IN 10 SECONDS.
>> YOU CAN SEE HERE THAT WE HAVE THE COMPENSATION WAS PUT IN HERE AS THE RECOMMENDATION, BUT YOU CAN SEE THAT ALL OF THE OTHER REQUESTS THAT ARE LISTED ARE RECOMMENDED NOT TO BE MOVED FORWARD.
FOR A TOTAL OF, WHAT YOU CAN SEE HERE, OF THE POSITIONS OR THE COMPENSATION STUDY.
>> GINA, ON THE COMPENSATION, THIS IS FOR THE GENERAL FUND ONLY, IT'S 1.482, BUT ON THE PREVIOUS SLIDE WITH THE FUNDING, THE GENERAL FUND WAS DIFFERENT NUMBERS.
YOU CAN GO BACK AND COMMENT ON THAT.
>> I CAN SPEAK TO THAT. SHOWING HERE IS THE NET REQUEST.
LET ME JUST TRY, 1,482, I THINK THE OTHER NUMBER WAS 1.595.
>> IS IT BECAUSE WE'RE ELIMINATING SOME POSITIONS?
>> NO, IT'S NOT ELIMINATING POSITIONS.
WHAT IT IS IS THE TOTAL EXPENDITURE IS NEAR $1.6 MILLION.
IN ACTUALITY, EVERY EMPLOYEE ISN'T HERE THROUGHOUT THE YEAR, EVERY SINGLE DAY.
PEOPLE LEAVE, THERE'S TURNOVER.
IT, IN MY OPINION, WOULD BE INEFFECTIVE OF US TO PUT ALL OF OUR BUDGET DOLLARS IN ONE BASKET AND TIE IT UP IN PERSONNEL THAT WE KNOW IS NOT REALITY.
WHEN TURNOVER IS 18, 20%, WE THOUGHT IT WAS AT LEAST FAIR TO BUDGET 2% OF THE BUDGET.
WE BUDGET 98% OF THE PERSONNEL.
>> DAVID, YOU'VE BEEN IN TOO MANY ENGINEERING BUDGET MEETINGS.
>> I'M SPEAKING TO THE PUBLIC. [LAUGHTER] IT IS A VACANCY.
IT ALSO REFLECTS A REVENUE OFFSET.
THE SCHOOLS HELP US PAY FOR SOME OF THE INCREASES TO THE SCHOOL RESOURCE OFFICERS.
>> I THINK WE HAVE A FEW MORE QUESTIONS. MRS. BUHLER.
>> MRS. NASH, ARE YOU GOING TO SPEAK TO EACH OF THESE SUPPLEMENTAL REQUESTS?
>> I CAN, IF YOU'D LIKE FOR ME TO.
>> I WOULD JUST REALLY LIKE TO FIND A WAY TO FUND THE ROPE RESCUE EQUIPMENT AND THE HANDTEVY PEDIATRIC CARE SYSTEM.
I FEEL LIKE THOSE ARE SAFETY AND LIFE-SAVING REQUEST, AND IF WE CAN FIND $30,000 IN THE BUDGET, I THINK THOSE WOULD BE WORTH ACQUIRING.
>> I CAN ACTUALLY SPEAK TO BOTH OF THOSE.
INITIALLY, WHAT WE TOLD THEM IS THAT THEY COULD NOT FUND THOSE, AND IF THEY HAD SOME YEAR-END SAVINGS WITHIN THEIR BUDGET, THAT WE WOULD BE ABLE TO FUND BOTH OF THOSE.
THAT'S STILL IN PLAY TO BE ABLE TO FUND THOSE WITH SOME YEAR-END SAVINGS, BUT IT WOULD NOT BE IN THE '25, '26 BUDGET.
IT WOULD BE IN THE '24 '25 BUDGET.
>> MRS. NASH, LAST I HEARD FROM THE FIRE GROUP IS THAT THEY HAD ALREADY IDENTIFIED FUNDS FOR THE HANDTEVY PEDIATRIC SYSTEM, AND THEY WERE WORKING ON THE ROPE RESCUE.
>>I ALSO JUST WANT A LITTLE MORE DETAIL ON THIS SLIDE.
CURRENTLY, WE HAVE WHAT WAS A DIVISION CHIEF OR AN OPERATIONS CHIEF.
I SEE THE JOB TITLE NOW IS BEING ADVERTISED AS BATTALION CHIEF.
THAT'S A POSITION THAT WE ALREADY HAVE THAT WE'RE CONTINUING TO RECRUIT, AND WE HAVE AN INTERIM PERSON IN THAT POSITION.
THIS BATTALION CHIEF WOULD BE SPECIFIC TO EMS IS WHAT WAS BEING PROPOSED.
>> THAT'S CORRECT. IT WOULD BE A POSITION ABOVE AND BEYOND WHAT WE HAVE.
>> SEEING THAT WE'RE NOT GOING TO FUND THIS THIS YEAR, THAT'S THE PROPOSAL ANYWAY, AND NO TELLING WHAT HAPPENS NEXT YEAR, DOES THAT AFFECT OUR HIRING DECISION THEN FOR RIGHT NOW? ARE WE LOOKING FOR SOMEBODY THAT CAN DO BOTH ROLES, BOTH FIRE AND EMS THEN IN THIS POSITION?
>> GOOD TO HEAR ON THE OTHER THINGS.
JUST ON THAT 3D PRINTER, I'M NOT SURE IF THERE'S STILL FRIENDS GROUP AND WHAT IT'S DONE FOR THE LIBRARY, THOUGH, BUT IF THERE WAS SOME COST-SHARING IF THERE WAS SOME PRIVATE FUNDS THAT COULD BE RAISED, AND THEN MAYBE SOME INTO YOUR BUDGET AS WELL IN THAT AREA, MAYBE WE COULD GET THAT 3D PRINTER.
>> THE FRIENDS, THAT GROUP REALLY HASN'T BEEN AS ACTIVE AS IT HAS IN YEARS PAST.
THE DISCUSSION THAT WE'VE HAD WITH RANDALL CROSS, OUR LIBRARY MANAGER, IS THAT THE 3D PRINTER WE HAVE NOW WORKS FINE.
HE'S TRYING TO PLAN AND SAY THAT HE KNOWS THAT WE WILL NEED TO DO SOMETHING FOR SURE ON THIS UPCOMING.
THIS IS AN OPTION THAT HE WOULD LIKE US TO LOOK AT MOVING FORWARD, AND WE TALKED ABOUT MAYBE SOME POTENTIAL WAYS THAT GRANT FUNDS AND OTHER WAYS THAT HE COULD GET IT.
BUT THE 3D PRINTER IS STILL ALIVE AND WELL AND DOING ITS JOB.
HE'S JUST TRYING TO PLAN FOR THE FUTURE.
[01:25:03]
>> I WOULD DEFINITELY BE IN FAVOR OF THE 3D PRINTER.
I HAD MENTIONED TO IT ONCE BEFORE, AND RIGHT NOW IF YOU TAKE SOMETHING DOWN AND HAVE IT 3D PRINTED, ALL YOU PAY IS FOR BASICALLY THE COST OF THE PLASTIC THAT'S PRINTED.
MY FEELING IS WE COULD LOOK AT THE ANTICIPATED REPLACEMENT COSTS FOR THE NEXT ONE WHEN THIS ONE WEARS OUT AND USES UP OR NEW TECHNOLOGY COMES ON BOARD, THAT OUR FEE MIGHT BE INCREASED TO ADD A LITTLE BIT OF THAT, SO YOU BUILD IN OUR REPLACEMENT FUND.
WE COULD ACTUALLY BUILD IT IN BY USER USE, AND THAT WOULD BE A USER, NOT A CITYWIDE.
YOU HAVE TO PAY FOR EVERYBODY SO SOMEBODY CAN GO PLAY ON A PRINTER.
EVERYBODY THAT USES PRINTERS GETS TO USE IT.
I HAVE ONE JUST PHILOSOPHICAL QUESTION ON THIS OVERALL BUDGET PROCESS.
IT'S THIS. AS EDC IS A SEPARATE CORPORATION OF THE CITY COUNCIL, SHOULD THE EDC BUDGET BE PART OF OUR CITY MUNICIPAL BUILDING BUDGET PROCESS ANYWAY, OR SHOULD IT BE ON A STAND-ALONE SINCE IT'S A SEPARATE CORPORATION?
>> THEY DO THEIR BUDGET SEPARATELY RIGHT NOW BECAUSE OF THE WAY THE FUNDING SOURCE IS LAID OUT, AND IT'S ITS OWN SEPARATE SALES TAX.
THAT'S WHY IT STILL OPERATES AND IT'S BECAUSE IT'S STILL INCORPORATED AS A CORPORATION.
THE BOARD APPROVES IT, AND THEN IT STILL COMES TO THROUGH THE CITY COUNCIL.
>> ANY OTHER QUESTIONS, MRS. NASH, YOU WERE IN THE MIDDLE OF YOUR SUPPLEMENTAL?
AS YOU CAN SEE, THE BOTTOM LINE THERE, WHEN WE TALKED ABOUT WHAT THE FUNDS WOULD BE REMAINING FROM WHAT WE PROJECTED FROM WHERE WE ARE RELATIVE TO OUR REVENUES, THAT WE WOULD STILL HAVE THAT FUNDS REMAINING OF $88,330, IF WE ASSUMED THAT WE FULLY FUNDED THE COMPENSATION STUDY AND NONE OF THE SUPPLEMENTALS.
>> 3D MATCH. YOU CAN SEE HERE, AND THE UTILITY FUND, THAT'S THEIR PORTION OF THE COMPENSATION STUDY, AGAIN, DID NOT APPROVE MOVING FORWARD ON THE POSITION IN PUBLIC WORKS AND WATER.
PART OF THAT REALLY WAS A DISCUSSION WITH PUBLIC WORKS AND HAVING A CONVERSATION ABOUT MAKING SOME CHANGES.
WE'VE MADE SOME STRUCTURAL CHANGES WITHIN THE DEPARTMENT IN THE LAST YEAR.
AS YOU KNOW, FOR MANY YEARS, WE OPERATED WITH ONE SUPERINTENDENT.
WHAT WE'VE DONE IS WE'VE ACTUALLY SPLIT THAT POSITION INTO TWO POSITIONS, ONE'S OVER WATER AND WASTEWATER, AND ONES OVER STREETS.
WE'VE SEEN SOME SIGNIFICANT IMPROVEMENTS IN THAT AREA RELATIVE TO MANAGEMENT OF THOSE EMPLOYEES AND THE TASKS THEREIN.
WE AGREED MUTUALLY THAT WE WOULD DECIDE TO PUT OFF ADDING ANY POSITIONS IN THAT DEPARTMENT UNTIL THAT DEPARTMENT HAD TIME TO HAVE THAT NEW RESTRUCTURE IN PLACE, AND IT'S ONLY BEEN IN PLACE FOR PROBABLY WHAT? SIX MONTHS, A LITTLE BIT LESS.
THAT MAY COME BACK, BUT THAT WAS A MUTUAL DECISION TO PUT THAT OFF AT THIS TIME.
THEN YOU CAN SEE THE INCREASE IN COMPENSATION FOR THE EDC SUPPLEMENTAL.
NO ADDITIONAL ONES BESIDES THAT.
WE ARE RECOMMENDING ALL THE REPLACEMENTS FOR THE VEHICLE AND REPLACEMENT FUND, BUT THAT HAS TO DO WITH THOSE FUNDS ARE AVAILABLE IN THERE, AND THESE ITEMS ARE UP FOR REPLACEMENT.
AS WE TALK ABOUT EVERY YEAR, JUST BECAUSE AN ITEM IS UP FOR REPLACEMENT DOESN'T MEAN THAT IT'S AUTOMATICALLY GOING TO BE REPLACED.
THERE ARE EXTENSIVE NUMBER OF MEETINGS FOR THE VEHICLE AND EQUIPMENT REPLACEMENT FUND, WITH EACH DEPARTMENT HAVING A DISCUSSION ANNUALLY ABOUT JUST BECAUSE THIS ITEM IS UP, ARE WE GOING TO REPLACE THIS ITEM? SHOULD ANOTHER ITEM BE SWAPPED OUT, OR DO WE NEED TO DO ANY DEFERRALS? THAT'S NEGOTIATED ON AN ANNUAL BASIS, BUT WE WANT TO MAKE SURE OBVIOUSLY, WE STILL HAVE A HEALTHY VEHICLE AND EQUIPMENT REPLACEMENT FUND, BUT WE ARE MAKING REPLACEMENTS AS NECESSARY.
WE'RE IN THE THIRD CYCLE ON THAT.
WE ARE REPLACING F-250 IN THE PARKS DEPARTMENT AND A TORO Z MASTER, AS WELL AS OUR ANNUAL REPLACEMENT THAT WE DO OF TWO PATROL VEHICLES.
THAT IS A POLICY THAT WE'VE HAD IN PLACE CERTAINLY FOR THE LAST DECADE, AND WE'RE GOING TO DO THAT THIS YEAR.
YOU'LL SEE HERE THAT WE HAVE SWITCHED OVER TO TAHOES.
WE'VE HAD BETTER LUCK WITH THEM.
WE SEEM TO LIKE THEM BETTER, AND SO WE'LL BE DOING THAT.
THEN WE NEED TO REPLACE A ADMIN VEHICLE, THE CHEVY TRAVERSE.
WITH THE HAILSTORM EARLIER THIS YEAR, WE'RE GOING TO BE PULLING THAT ONE OUT OF COMMISSION AND AUCTIONING THAT ONE AND PUTTING A NEW ONE IN PLACE, AND THEN A BACKHOE AND LOADER FOR PUBLIC WORKS AND STREETS. YES, SIR.
[01:30:02]
>> LAST YEAR, WE BOUGHT A TRACTOR WITH A FRONT-END LOADING BUCKET, AND I THOUGHT A BACKHOE LAST YEAR AND A TRAILER.
WHO WAS THAT FOR? WAS THAT FOR PARKS? LANCE IS LIKE, NO. NOT US.
>> NO, I THINK IT MIGHT HAVE BEEN FOR THE UTILITY FUND.
>> I BET MICH AND ESSE WILL TELL US.
DIFFERENT DEPARTMENTS SOMETIMES SHARE EQUIPMENT, BUT WHAT'S THE REASON FOR ANOTHER ONE? I ASSUME IT'S SIMILAR ITEMS.
>> LAST YEAR, WE BOUGHT A BOBCAT SKID LOADER.
>> THAT IS CORRECT. THANK YOU. MR. PRESTENBERG.
ON THE GENERAL FUND SUPPLEMENTALS, YOU MIGHT ALREADY EXPLAIN THIS, BUT I MIGHT HAVE VEGED OUT.
THE COMP SAYS 1.482, AND ON THE PREVIOUS SLIDE WAS 1.6 ROUGHLY. WHAT WAS THE DIFFERENCE?
>> THIS WAS WHEN DAVID WAS OVEREXPLAINING THE VACANCY FACTOR.
>> HE LOST ME ON THAT. THANK YOU. I'M GOOD.
>> ALL THAT TERMINOLOGY HE USES.
>> IT'S BEEN A LONG DAY. THANK YOU.
>> WE DID NOT HAVE ANY SCHEDULED REPLACEMENTS IN THE UTILITY VEHICLE AND REPLACEMENT FUNDS, SO YOU SEE ZERO HERE.
I'M GOING TO LET DAVID BRING IT ON HOME WITH A SUMMARY.
UNLESS SOMEBODY HAD ANY QUESTIONS ABOUT ANY OF THOSE COUPLE OF SLIDES I JUST DID.
>> JUST REALLY FAST ON THE VEHICLE REPLACEMENT.
AS YOU SAID, EVEN THOUGH IT'S ON THE LIST, IT DOESN'T NECESSARILY MEAN IT WOULDN'T GET REPLACED.
OR NOT JUST A VEHICLE, BUT ANYTHING.
>> THE ASSUMPTION IS THAT THEY DON'T DO THAT, THAT MONEY STAYS IN THE FUND FOR FUTURE PURPOSE.
>> THANK YOU. COUNCIL, I'LL DRAW YOUR ATTENTION.
>> COUNCIL, IF I MAY DRAW YOUR ATTENTION TO PAGE 160 OF YOUR BINDER.
THE BINDER THAT WE'RE REFERENCING IS ALSO AT WWW.CITYOFSACHSE.COM/BUDGET.
IT TALKS ABOUT WAYS TO ENGAGE WITH COUNCIL.
IT ALSO SHOWS THE PRELIMINARY BUDGET.
BUT ON PAGE 160 OF THIS DOCUMENT, IT SHOWS THE COMPENSATION PROPOSAL.
IT BREAKS OUT THAT 1.595 EMPLOYEE COST.
I'LL JUST SUMMARIZE IT AS THAT AS WE DISCUSSED.
DOWN BELOW, IT SHOWS REVENUE OFFSETS.
THAT'S WHERE WE'RE TRYING TO RECONCILE THE DIFFERENT NUMBERS THAT YOU'RE SEEING.
THERE IT IS VISUALLY FOR YOU, SO YOU DON'T JUST HAVE TO HEAR ME DRONING ON.
>> ALL THERE IN BLACK AND WHITE.
>> LET'S SEE. I'LL TRY AND PUT A BOW ON ALL THIS.
THEY'LL SEND ME UP HERE FOR A COUPLE OF SLIDES.
WE TALKED ABOUT, FIRST OF ALL, A SNAPSHOT OF HOW DOES THE CITY LOOK? WHAT ARE THINGS LOOKING LIKE? THEN WE LOOKED AT THE BASE BUDGET.
REMEMBER, WE SAW GENERAL FUND EXPENDITURE GROWTH OF 2%, AND WE SAW THE REVENUES.
WE LOOKED AT THAT BASE BUDGET, AND THEN CITY MANAGER GINA, JUST SPOKE TO THE SUPPLEMENTALS.
THIS NOW TIES IT ALL TOGETHER, GIVES YOU A SUMMARY BY THE FUNDS.
IF WE NOW INCLUDE THE SUPPLEMENTAL REQUESTS, THEN HOW DO THINGS LOOK? FOR THE GENERAL FUND, AGAIN, THIS IS WHAT GINA JUST PRESENTED, BUT REVENUES STILL EXCEED EXPENDITURES.
WE ARE LEAVING SURPLUS ON THE TABLE.
WE DO HAVE A BALANCED BUDGET OF $88,000.
LOOKING AT THE UTILITY FUND, FUNDING THE SUPPLEMENTAL REQUEST, WHICH WAS COMPENSATION, THERE IS A BALANCE REMAINING, BUT THE BUDGET CONVERSATION CONTINUES.
COREY PROVIDED HIS DRAFT CIP PLAN.
THE FULL DETAIL OF THAT CIP PLAN AS HOW THE NUMBERS ARE AFFECTED IN THIS UTILITY FUND WILL BE PRESENTED TO YOU AUGUST 15TH, AND THEN AUGUST 18TH IN A COUNCIL MEETING.
RIGHT NOW, IT'S SHOWING A SURPLUS OF THREE MILLION DOLLARS DEBT SERVICE.
THAT'S LARGELY FROM INTEREST ACCRUED.
ECONOMIC DEVELOPMENT SHOWS A DEFICIT IN THEIR BUDGET.
THAT'S JUST REFLECTING THAT THEY HAVE A CAPITAL PROJECT TRANSFER.
THEY'RE DOING SOME ONE-TIME ACTIVITY.
THEY'RE INTENTIONALLY DRAWING DOWN ON THEIR FUND BALANCE TO SOME EXTENT.
BUT THEIR FUND BALANCE IS ABOUT $6.3 MILLION.
IT'S JUST AGAIN, INTENTIONAL USAGE.
THEN THE VERF, WHEN YOU FUND THE SUPPLEMENTALS, THERE'S STILL $1.1 MILLION JUST IN THAT YEAR OF FUNDS REMAINING, AND UTILITY VERF, $332,000 REMAINING.
YOU HAVE BALANCED BUDGETS IN FRONT OF YOU.
THAT'S HOW IT LOOKS ALL TYING TOGETHER.
[01:35:02]
THE BUDGET CONVERSATIONS WILL CONTINUE.AGAIN, IT WAS REFERENCED THE BUDGET AND BEVS OR BEVERAGES EVENT AS A PUBLIC ENGAGEMENT EVENT THAT WILL BE ON AUGUST 7TH.
THE CITY MANAGER'S PROPOSED BUDGET WILL BE PRESENTED TO COUNCIL ONLINE VIA EMAIL.
IT'LL BE THERE FOR ALL THE PUBLIC TO SEE ON AUGUST 15TH, AND THEN PRESENTED TO COUNCIL THE FOLLOWING MONDAY ON AUGUST 18TH.
WE'LL HAVE CITY COUNCIL MEETINGS ON SEPTEMBER 2ND FOR A BUDGET PUBLIC HEARING FOR BUDGET DISCUSSION TO SET THE DATE FOR BUDGET ADOPTION.
THEN ON THE 15TH, WE WILL HAVE A TAX RATE PUBLIC HEARING, AND THAT IS IF THE RATE EXCEEDS THE NO NEW REVENUE RATE, THEN THAT WOULD BE REQUIRED.
OTHERWISE, IT IS NOT REQUIRED.
WE'LL ADOPT THE BUDGET, RATIFY THE TAX RATE, AND APPROVE THE PROPOSED TAX RATE, IS WHAT'S ON THE CALENDAR HERE.
WITH THAT, WE'VE HAD BISECTION, QUESTIONS, ANY FEEDBACK THAT YOU'VE HAD, AND WE ENTERTAIN ANYTHING ELSE YOU WANT TO ASK OF US OR SHARE WITH US.
>> THANK YOU, MR. BALDWIN. MRS. BUHLER.
>> I HAVE A COUPLE OF GENERAL QUESTIONS.
WHEN DO WE DISCUSS INSURANCE? WHEN DO WE BAKE IN THAT TO THIS? LOOKING LINE BY LINE THROUGH ALL THE DEPARTMENTS, SOME DEPARTMENTS HAVE A BIG INCREASE PROJECTED FOR HEALTH INSURANCE, SOME DON'T.
THAT WILL COME BEFORE YOU AT, I BELIEVE, THE FIRST COUNCIL MEETING IN OCTOBER.
WE'RE MEETING WITH HUB IN SEPTEMBER.
WE'RE ACTUALLY RELEASING THE RFP TO MARKET JULY 31ST.
WE DO HAVE A RATE CAP IN PLACE WITH UNITEDHEALTHCARE, BUT IT'S ALWAYS GOOD TO SEE WHAT THE MARKET CAN OFFER.
>> FOR A DEPARTMENT, FOR EXAMPLE, IF IT BUMPED UP $20,000 IN ONE YEAR, AND WE DON'T EXPECT ANY NEW EMPLOYEES, WOULD THAT JUST BE SHIFTS IN THOSE FAMILIES NEEDS?
>> I THINK THAT'S REFLECTING A 10% INCREASE TO THE DEPARTMENTAL BUDGET.
>> BECAUSE SOME DEPARTMENTS WENT DOWN, SO IT WAS JUST ALL OVER THE BOARD.
>> THERE'S A HEALTH INSURANCE LINE ITEM.
IN THE BASE BUDGET, THERE IS AN ASSUMPTION OF GROWTH.
IF YOU COULD POINT ME TO A PLACE WHERE IT SHOWS AS A REDUCTION.
>> FOR EXAMPLE, IN THE CITY MANAGER'S BUDGET, THE HEALTH INSURANCE, THE TOTAL BUDGET OF LAST YEAR.
>> CAN I ASK YOU TO REFERENCE A PAGE?
>> IT WENT FROM $80,000 LAST YEAR TO 104,000.
IT'S DIFFERENT IN EVERY DEPARTMENT.
I WAS EXPECTING TO SEE SOMETHING MORE UNIFORM ALONG THE 10% LINE, BUT SOME, ONLY GO UP MARGINALLY.
>> LINDSAY, WE CAN GO AHEAD AND TAKE A LOOK AT THAT.
BUT THE DEPARTMENTS ARE ALSO GOING TO VACILLATE DEPENDING ON WHO IS IN THE DEPARTMENT IF THEY CHANGE THEIR HEALTH INSURANCE, IF WE CHANGE EMPLOYEES, AND THEY CHANGE PLANS.
BUT WE'LL DEFINITELY CHECK IT AND MAKE SURE THAT THERE AREN'T ANY ISSUES IN HERE.
>> BECAUSE HR WENT DOWN $14,000.
IT'S NOT A UNIFORM 10%, FOR SURE.
I WAS WONDERING IF IT WAS JUST PERSONAL EMPLOYEES SITUATIONS THAT MIGHT FLUCTUATE.
>> IN SOME OF THESE, I CAN THINK ABOUT THAT, AND I CAN THINK ABOUT PERSONNEL CHANGES WHERE WE HIRED A PERSON WHO HAD A FAMILY PLAN, AND THEN THEY LEFT AND SOMEBODY CAME ON AND WAS SINGLE.
THAT'S GOING TO BE A BIG FLUCTUATION.
>> THANK YOU FOR BAILING ME OUT. YES, GINA.
IT'S THE ASSUMPTIONS THAT ARE MADE.
WE KNOW HOW CERTAIN PEOPLE, WHAT INSURANCE THEY TYPICALLY CHOOSE, AND SO WE TYPICALLY ASSUME THAT THEY'RE GOING TO CONTINUE IN THEIR PROGRAMS. BUT IF THERE'S A CHANGE, IF THERE'S A VACANCY, THEN WE HAVE A GENERAL ASSUMPTION.
I'M NOT RECALLING OFF THE TOP OF MY HEAD, BUT I THINK IT'S OUR ASSUMPTION THERE YOU GO.
>> FOR VACANCIES, WE BUDGET EMPLOYEE SPOUSE, AND WE ALSO BUDGET THAT THEY'RE GOING TO TAKE THE HIGH DEDUCTIBLE HEALTH PLAN, AND SO WE BUDGET THE HSA DOLLARS THAT THE CITY SITS THOSE ACCOUNTS WITH.
>> PERFECT. THANK YOU SO MUCH.
MY NEXT ONE WAS ABOUT INCREASING THE SIDEWALK BUDGET.
I KNOW WE'VE HAD LENGTHY DISCUSSIONS ABOUT THIS, WHETHER WE PAY 100% OR IF THERE'S A COST SHARING OPTION.
WERE WE ABLE TO BAKE THAT INTO THIS BUDGET TO ALLOCATE A DIFFERENT FUND FOR IF WE FUND IT 100%, IF THEY'RE THE TOP OF THE LIST OR IF PEOPLE WANT TO COST SHARE OF THE PROJECT?
>> THE WAY THE COUNCIL DECIDED TO MOVE FORWARD ON THIS IS THAT WE WOULD NOT DO
[01:40:03]
THE COST SHARING AND THAT WE WERE JUST GOING TO STICK WITH THE CITY PAYING WITH WHAT WE HAD IN THE BUDGET.THAT'S ALL THAT'S BEEN BAKED IN HERE.
WE DID NOT PUT AN INCREASE IN THE SIDEWALK BUDGET.
IT WAS WHAT WE HAD PREVIOUSLY.
>> THANK YOU. THEN ONE LAST QUESTION.
I KNOW YOU JUST TOUCHED ON THE PERSONNEL VACANCY FACTOR.
ON PAGE 135, CAN YOU EXPLAIN TO ME WHAT THE $424,000 PERSONNEL VACANCY FACTOR IS? I GUESS THE TOP FIRST LINE ON 135.
>> COMBINED SERVICES IS OUR CATCH ALL DEPARTMENT.
WE KNOW LOOKING AT THIS FUTURE BUDGET YEAR THAT THERE WILL BE VACANCIES.
AGAIN, IT'S A HIGH NUMBER, BUT WE BUDGET JUST 2% TO BE CONSERVATIVE.
WE DON'T KNOW WHERE THAT VACANCY IS GOING TO HAPPEN.
RATHER THAN PUT IT IN ALL DEPARTMENTS, WE PLACE THAT HUGE NEGATIVE, 2% OF ALL THE SALARY, AND WE PUT IT IN COMBINED SERVICES.
HALFWAY THROUGH THE YEAR, OR ONCE ENOUGH VACANCIES HAVE HAPPENED, THEN WE GO MOVE THE BUDGET AROUND.
IF POLICE HAD A WHOLE BUNCH OF VACANCIES, WE WILL DISTRIBUTE THAT $425,000 TO THEM.
THEY SHOULDN'T BE MAD BECAUSE IN THEIR BUDGET, LIKE THAT WAS VACANT, SO THEY DIDN'T HAVE TO SPEND IT ON SALARY.
ONE OTHER NOTE, THOUGH, WHEN YOU COMPARE BUDGETS AND YOU LOOK AT WHAT I PROVIDED ON THE SLIDES AND WHAT'S IN HERE, NOT ALL THE NUMBERS ARE GOING TO MATCH BECAUSE THE PRIOR YEAR INCLUDES THAT ONE JOURNAL ENTRY, WHERE WE TOOK THAT BIG NEGATIVE NUMBER, AND WE GAVE IT TO THE DEPARTMENTS THAT HAD THE VACANCIES.
I TOOK THAT OUT BECAUSE IT'S A LOT OF NOISE.
IT ARTIFICIALLY REDUCES A DEPARTMENT'S BUDGET.
THEN WHEN I SHOW YOU THEIR PRE LIMB BUDGET, IT LOOKS LIKE A HUGE INCREASE.
WELL, THEY SHOULDN'T BE PENALIZED BECAUSE THEY HAD PRIOR YEAR VACANCIES.
I SEPARATELY HAVE UNDONE THAT JOURNAL ENTRY, AND IT SHOWS IN THE SLIDES.
>> I JUST HAVE A COUPLE OF COMMENTS IN WINDING UP.
I GUESS WE'RE PRETTY MUCH WINDING UP.
>> IT HAS TO DO WITH BUDGET IMPLICATIONS.
IT DOESN'T HAVE ANYTHING TO DO WITH THIS YEAR'S BUDGET, BUT I THINK IT'S SOMETHING WE NEED TO BE AWARE OF AND WHAT'S GOING ON IN THE STATE LEGISLATURE RIGHT NOW.
HOUSE BILL 104, SPECIAL SESSIONS IS COMING UP BEING DISCUSSED.
IT'S ALREADY BEEN PROPOSED, AND IT MAY BE PASSED, AND IT MAY, AND WE DON'T KNOW THE EFFECTIVE DATE, BUT IT SAID A CITY OR COUNTY'S TOTAL EXPENDITURES FROM ALL AVAILABLE SOURCES OF REVENUE IN A FISCAL YEAR MAY NOT EXCEED THE GREATER OF.
IT BASICALLY SAYS LAST YEAR'S TOTAL INCOME.
THAT MAY HAVE SOME LONG REACHING AS OUR GROWTH HAS BEEN AND WE'VE ALREADY DISCUSSED ABOUT IT.
OUR GROWTH IS SLOWING DOWN, OUR INCOME IS COMING DOWN.
OUR BUDGET IS HOPEFULLY GOING TO START SLOWING DOWN A LITTLE BIT, BUT WE'RE GOING TO HAVE TO SLOW IT MAYBE A LITTLE FASTER THAN WE ARE IF WE CONTINUE TO DO WHAT WE'RE DOING.
I JUST WANTED TO THROW THAT OUT THAT THAT MIGHT BE SOMETHING THAT COULD GET REAL CRITICAL PRETTY SOON.
WE DON'T KNOW IF IT PASSES AND IT'S SIGNED IN, WE DON'T EVEN KNOW WHEN IT GOES INTO EFFECT.
IT MAY GO INTO EFFECT IMMEDIATELY.
THEN THE NEXT ONE IS HOUSE BILL 105, CERTIFICATES OF OBLIGATION.
WOULD AMOUNT TO THE THINGS THAT PROHIBIT THE CITY FROM ISSUING A CERTIFICATE OF OBLIGATION FOR THE FOLLOWING TYPES OF PUBLIC IMPROVEMENTS.
IT LISTS BASICALLY STREETS, ROADS, HIGHWAYS, BRIDGES, SIDEWALKS, PARKING STRUCTURES, AIRPORTS, WHARFS, DOCKS, ANIMAL SHELTERS, LIBRARIES, PARKS AND RECREATION FACILITIES, AND IT GOES IN TO SAY EVERYTHING.
BASICALLY, RIGHT NOW, THE CONSENSUS, I GUESS, IS WE'RE ANTICIPATING THAT OUR SERVICE CENTER IS GOING TO BE FUNDED WITH A CERTIFICATE OF OBLIGATION, AND WE MAY NOT BE ABLE TO DO THAT, EITHER.
I THINK THESE ARE TO IMPLICATIONS THAT WE NEED TO BE COMING BACK WITH THE ANTICIPATED PLAN 2, SO TO SPEAK.
I'M NOT THROWING OUT ANY SUGGESTIONS OR COMMENTS AT THAT POINT, BUT I THINK IT'S SOMETHING THAT IF WE'RE NOT AWARE OF IT, WE SHOULD BE AWARE OF IT, THAT THIS IS COULD BE DETRIMENTAL OR NOT DETRIMENTAL, BUT AFFECT US TREMENDOUSLY AND FORCE US TO CHANGE OUR COURSE OF DIRECTION.
>> COUNCILMAN MILLSAP, WE'VE BEEN MONITORING ALL OF THESE BILLS THROUGH THE SPECIAL SESSION.
WE HAVE BEEN IN TOUCH WITH TEXAS MUNICIPAL LEAGUE WHO DOES THE LOBBYING ON BEHALF OF CITIES RELATIVE TO THIS.
THERE ARE A LOT OF FOLKS THAT ARE GOING DOWN TO AUSTIN AND TESTIFYING ON BEHALF OF CITIES AS TO WHY SOME OF THESE THINGS COULD BE QUITE DETRIMENTAL.
IT'S NOT JUST FOR THE REASONS OF CITIES NOT BEING ABLE TO CONTROL THEIR OWN DESTINY,
[01:45:03]
BUT ALSO, THERE'S THE FLIP SIDE OF THAT IS YOU LOOK AT ALL OF THE COMPANIES THAT WILL BE DOING CONSTRUCTION.THAT'S A LOT OF JOBS AND A LOT OF MONEY THAT WILL NOT BE GOING INTO THE ECONOMY AS A RESULT OF HAMSTRINGING CITIES.
>> A LOT MORE IMPLICATIONS THAN JUST TO US, BUT YES, TO THE STATES ECONOMY.
>> NEIGHBORHOOD SERVICES. LET ME BACK UP.
I SEE ON HERE ON SLIDE 51 ON ROADWAY PROJECTS.
IT SAYS CURRENT BUDGET IS 2.6, ANTICIPATED BUDGET INCREASE IS 400. I UNDERSTAND THAT.
BUT THE ONE BELOW IT, MISCELLANEOUS STREETS REPAIRS, 250,000.
I DIDN'T SEE THAT IN THE INCREASES.
I'M SURE I MISSED IT SOMEWHERE, BUT IS THAT A BUDGET SET ITEM OR IS THAT AN INCREASE?
>> IT'S AN INCREASE, AND WE ARE INCLUDING THAT IN THE CIP.
>> PERFECT. THAT'S WHERE IT WAS. THEN NEIGHBORHOOD SERVICES, IT LOOKS LIKE WE REDUCED THE BUDGET.
THAT'S BECAUSE WE HAD A REDUCED CIP TRANSFER.
AS YOU REMEMBER, WE HAD $25,000 THAT WE SET ASIDE FOR NEIGHBORHOOD PROJECTS LAST YEAR IN THE BUDGET THROUGH THE BOND, AND WE'RE NOT INCLUDING THAT THIS YEAR.
>> WE TALKED ABOUT INCREASING THE SIDEWALK BUDGET.
WE ARE NOT RECOMMENDING THAT. AT THIS TIME THEN.
>> I DID NOT PUT IN A SIDEWALK BUDGET INCREASE.
>> WELL, THAT'S PART OF IT, AND THEN OTHER SUPPLEMENTAL PROJECTS.
I DON'T KNOW LIKE THE MEDIAN ON HUDSON CROSSING THAT I'VE BEEN TALKING ABOUT FOR 10 YEARS, THAT STILL ISN'T DONE.
THAT IS ALSO WOULDN'T BE AN INCREASE OF THE BUDGET, SO PROBABLY WOULDN'T BE DONE THIS YEAR.
>> INITIAL THOUGHTS. I THINK THAT'S ALL I HAD.
>> MAY I JUST ADD A COUPLE OF SOME THOUGHTS?
>> AS I RECALL, SIDEWALK BUDGET IN TOTAL.
NOW, WE TALKED ABOUT OTHER FUNDING SOURCES, SO I'M NOT TALKING ABOUT THAT, BUT COUNCIL, I BELIEVE, ADDED OR IT WAS ADDED IN THE BUDGET, AN INCREASE TO THE CAPITAL PROJECT FROM $150,000-200,000.
THAT CHANGE WAS MADE LAST YEAR FOR SIDEWALKS.
DID IT INCREASE BEYOND THAT 200,000? NO, IT DID NOT?
>> NEIGHBORHOOD SERVICES, WE JUST SAID THAT IT DECREASED.
IT DID JUST DECREASE, DECREASED $25,000, BUT THAT WAS THE GENERAL FUNDS CONTRIBUTION TO THE CIP PLAN FOR THAT WORK.
THAT WORK STILL WILL CONTINUE, THAT WORK WAS NOT TAKEN OUT.
WHAT WE DID IS $500,000 OR SO IS EARNED IN INTEREST IN THE CAPITAL PROJECT PLAN IN THE CIP.
THAT'S BEING GENERATED. WE SAID, WHY TAKE FROM THE GENERAL FUND WHEN WE CAN SUSTAIN THAT JUST THROUGH ITS OWN INTERNAL MONEY IN THE CIP.
NEIGHBORHOOD SERVICES STILL GOES AT 25,000.
SIDEWALKS ARE STILL HAPPENING AT 200,000.
>> I HAD ONE MORE, BUT I CAN'T REMEMBER.
IT'S TOO MANY NUMBERS ON MY HEAD.
>> YES. A BASIC QUESTION, BUT ON THE SUMMER CONCERT SERIES, IF IT'S RAINED OUT, DO IT GO BACK TO THE GENERAL FUND OR DO YOU HAVE TO STILL PAY THE FEE BECAUSE YOU'RE HOPING THAT THEY WOULD SHOW UP.
>> IT SAVE MONEY UNLIKE THE STAGE [INAUDIBLE].
>> YOUR WORLDWIDE WEB CANNOT HEAR YOU.
>> APOLOGIZE FROM YELLING FROM THE LANCE WIT WORK.
>> CAN YOU STATE YOUR NAME AND ADDRESS?
BUT WE DO RECOVER SOME OF THE COSTS FROM THE SOUND AND THE EQUIPMENT AND THE STAGE, AND STUFF LIKE THAT.
>> I THINK, IT'S NOT THEIR FAULT. WE CANCELED BAND.
THEN FOR THE BIG EVENTS, LIKE THE RED WHITE AND BLUE BADGE WE JUST HAD, IF WE THINK OF IMPROVEMENTS FROM, SETUP OR WHATNOT.
ARE THERE OPPORTUNITIES TO ADD BUDGET LATER ON IN THE YEAR, OR IS THIS OUR ONE TIME.
>> THERE'S ALWAYS ROOM TO ADD BUDGET TO OUR EVENTS. OF COURSE.
>> WELL, I ALSO JUST THINK FROM A BUDGET PERSPECTIVE, LIKE, WHO PAYS FOR SECURITY FOR THAT? IS THAT OUT OF YOUR BUDGET? IS THAT OUT OF THE CHIEF'S BUDGET?
>> YOUR BUDGET. I'M JUST CURIOUS.
[01:50:01]
>> PERFECT. THANK YOU. THEY'RE BOTH.
>> LANCE ALWAYS WANTS TO DO WASHING.
CAN YOU DO THE TIEBREAKER THEY'RE DOING?
>> WELL, SOMETIMES WE ACTUALLY PROVIDE MANPOWER FROM OUR OWN CITY STAFF.
PUBLIC WORKS. WAS IT COREY DOING THIS?
>> BECAUSE COREY ACTUALLY HELPED US WITH THAT, TOO.
THEN I THINK THE ACTUAL SECURITY OFFICER, THEY'LL SEND SOMEBODY OUT THERE. THAT'S PD.
>> COUNCIL MEMBER PRESTENBERG, YOU ASKED ABOUT CABLE TV FOR FRANCHISE REVENUES.
I MENTIONED THAT. WELL, NOT ABOUT YOUR SERVICE, BUT MORE ABOUT THE REVENUE.
ALL OTHER FRANCHISE FEES ARE GOING UP.
IT'S NOT NECESSARILY THAT WE'RE JUST MISSING ONE PAYMENT.
WHEN I LOOK AT MY OWN FAMILY, WE USED TO TURN ON THE TV, TO GET NEWS, TO GET ENTERTAINMENT, AND NOW WE LOOK AT OUR DEVICES MORE OFTEN THAN WE WOULD OTHERWISE.
WE ARE SEEING TELEPHONE OR CELLULAR SERVICE THAT FRANCHISE FEE GOING UP, CABLE TV GOING DOWN.
>> SPECTRUM PROVIDES BOTH SERVICES.
>> THEY ARE A GREAT COMPANY THEY DO GREAT SERVICES ETC.
>> YOU SAID IT WAS GOING DOWN. I WAS JUST CURIOUS HOW MUCH, BUT, THANK YOU.
>> I WOULD SAY COURT CUTTING HAS A LOT TO DO WITH THAT, I THINK.
>> MAYOR FORTIS FRANKS, I THINK YOU REMEMBER.
>> ON THAT NOTE ABOUT CABLE TV, DOES THAT INCLUDE INTERNET OR IS THAT INTERNET A SEPARATE CATEGORY?
>> I BELIEVE THERE WAS FEDERAL LITIGATION AROUND INTERNET, AND I'M NOT UP ON THAT, BUT I BELIEVE.
>> TO ADD MORE FRANCHISE FEES FROM INTERNET A SEPARATE LINE ITEM THAN CABLE IS WHAT I'M ASKING. DOES THAT MAKE SENSE?
>> YOU BET. I'M TOO DETAILED IF I DON'T HAVE THE ANSWER, I CAN'T GIVE IT TO YOU RIGHT NOW.
>> THAT'S FAIR ENOUGH. DON'T GIVE ME THE WRONG.
>> ANYTHING ELSE YOU WANT TO ADD, MR. BOWEN.
ANY OTHER QUESTIONS FROM COUNCIL BEFORE WE WRAP IT UP? I DO WANT TO TAKE THIS OPPORTUNITY TO SAY THANK YOU TO STAFF.
IN MY OPINION, THIS IS THE MOST CHALLENGING PART OF YOUR JOB.
IN TURN, I BELIEVE, IT'S THE COUNCIL'S ULTIMATE RESPONSIBILITY TO BE GOOD STEWARDS WITH THE TAXPAYERS MONEY.
WE ARE ALL ON THE SAME TEAM THERE.
THANK YOU SO MUCH FOR THE PRESENTATION.
AS MR. BALDWIN MENTIONED, THIS PROCESS IS STILL ONGOING.
THE CALENDAR HAS BEEN PRESENTED A COUPLE OF TIMES, BUT AGAIN, YOU GO TO OUR WEBSITE TO FIND THAT.
MANY MORE OPPORTUNITIES TO GIVE YOUR INPUT ON THE BUDGET BETWEEN NOW AND ADOPTION IN SEPTEMBER, SO. WITH THAT.
ANY OTHER QUESTIONS OR COMMENTS FROM COUNCIL? HEARING NONE. MS. GRANGER, THE TIME?
>> 7:53 PM. WE ARE ADJOURNED AT 7:53 PM.
* This transcript was compiled from uncorrected Closed Captioning.