[00:00:01]
ALRIGHT, EVERYBODY, GOOD EVENING.
[1. Call to Order]
TODAY IS TUESDAY, JULY 21ST.THE TIME IS 6:01 PM WE'RE HERE FOR THE FINANCE STRATEGY SESSION NUMBER TWO OF THE
WE DO HAVE A FORUM PRESENT, SO I'M GONNA CALL THE MEETING TO ORDER.
OUR FIRST ITEM IS CITIZENS APPEARANCE.
WE DID NOT HAVE ANYBODY SIGNED UP TO SPEAK, SO
[3. 2026-0288 Introduction]
WE WILL MOVE ON TO ITEM THREE, WHICH IS AN INTRODUCTION AND OVERVIEW BY MS 10, KIM.GOOD EVENING, MAYOR AND COUNSEL SLIDES.
SO THIS EVENING ARE, UH, IS OUR, AS SAMARA MENTIONED, OUR SECOND FINANCIAL STRATEGY SESSION.
UH, LAST WEEK WE PROVIDED YOU WITH INFORMATION, UM, AND YOU SHARED FEEDBACK FOR THE SPECIAL REVENUE FUNDS AND THE WATER SEWER FUND.
AND TONIGHT WE'LL SHARE, UH, INFORMATION AND SEEK FEEDBACK FOR THE GENERAL FUND AND THE DEBT SERVICE FUND.
UH, WE WILL ALSO SHARE SOME VERY PRELIMINARY INFORMATION CONCERNING ASSESSED VALUATIONS.
BUT BEFORE WE DIVE INTO THOSE TOPICS, I'D LIKE TO SHARE, UH, A FEW HIGHLIGHTS, UM, THAT YOU'RE GOING TO HEAR THIS EVENING.
SO THE FIRST IS THAT THE FINANCIAL INFORMATION YOU'LL SEE THIS EVENING DOES, UH, PROVIDE A BALANCED BUDGET OR A BALANCED, UH, FORECAST.
SO THE OPERATING REVENUES AND THE OPERATING EXPENDITURES, UM, DUE BALANCE, UH, AND IT INCLUDES A REDUCTION IN STAFF OF FOUR FULL-TIME EQUIVALENTS, WHICH BRINGS THE TOTAL STAFF REDUCTION BETWEEN FI FISCAL YEAR 26 AND FISCAL YEAR 27 TO 14 POSITIONS TONIGHT.
WE'LL ALSO, UH, SHARE HOW SERVICES WILL LOOK DIFFERENT BASED ON SOME DATA ANALYSIS THAT SHOWS A CHANGE IN SERVICE DEMANDS.
UH, NEXT, THE INFORMATION, UH, PROVIDED THIS EVENING INCLUDES THE DIRECTION PROVIDED BY COUNSEL DURING THE FEBRUARY COUNCIL RETREATS.
UH, SPECIFICALLY THE DIRECTION PROVIDED WAS TO CONTINUE TO ASSUME THAT THE SALES TAX RULE, 3.334, UH, UM, IT IS IN EFFECT SINCE LITIGATION CONTINUES.
UH, IT INCREASES THE PROPERTY TAX REVENUE BY 3.499%, AND IT CONTINUES THE STRATEGIC USE OF THE GENERAL FUND'S, UH, FUND BALANCE.
AND YOU'RE GOING TO HEAR MORE ON THIS AS WE WALK THROUGH THE GENERAL FUND FORECASTED EXPENDITURES.
UH, WE ALSO ARE, UM, MAINTAINING EMPLOYEE SALARY IN THE TOP THIRD OF THE CITY'S COMPARISON CITIES.
AND THAT IS DETERMINED BY A COMPENSATION STUDY.
SO BASED ON THE DIRECTION AND THE USE OF REVENUES AND EXPENDITURE STRATEGIES, STAFF IS PROVIDING YOU WITH GENERAL FUND OPERATING EXPENDITURES, UM, THAT ARE 3.33% OVER THE CURRENT YEAR OPERATING EXPENDITURES.
AND AS WE COVER EXPENDITURES, PLEASE REMEMBER, REMEMBER THAT OPERATING EXPENDITURES EXCLUDE THE ONETIME TRANSFERS AND THE ONETIME USES OF FUND BALANCE FOR ITEMS FUNDED FROM THE ASSIGNED FUND BALANCE OF THE GENERAL FUND.
FOR EXAMPLE, YOU'RE GOING TO HEAR ABOUT A ONETIME TRANSFER OF ALMOST $5 MILLION FROM THE GENERAL FUND TO A PROPOSED NEW PUBLIC SAFETY REPLACEMENT FUND.
YOU'LL ALSO SEE THE INCLUSION OF THE COST OF THE 20 SOME 2040 INITIATIVES THAT ARE SHOWN IN THE COUNCIL'S VISION 24 40 WORK PLAN FOR FISCAL YEAR 27.
BUT BEFORE WE MOVE ON FROM THIS TOPIC, I WOULD LIKE TO TAKE A MOMENT OR TO MAKE A COUPLE OF ADDITIONAL COMMENTS.
AND THE FIRST, UH, IS THAT THE INCREASE IN CPI FROM MAY OF 2025 TO MAY OF 26 WAS 4.2%.
AND THE GENERAL FUNDS FORECASTED OPERATING EXPENDITURES THAT YOU'RE GONNA SEE THIS EVENING ARE ONLY INCREASING 3.33%.
SO THAT'S LESS THAN INFLATION.
AND THIS MODEST INCREASE DEMONSTRATES THE FISCAL STEWARDSHIP AND THE USE OF STRATEGIES MENTIONED DURING THE FIVE-YEAR FORECAST PRESENTATION.
UH, THAT WAS MADE IN MAY BY THE ASSISTANT DIRECTORS TO COUNCIL.
AND SO SPECIFICALLY YOU MIGHT RECALL SEEING, UH, THIS SLIDE, UH, IT WAS PRESENTED, UH, AND IT WAS, UH, THERE WAS A DISCUSSION ABOUT WHAT WE CALL REFERRED TO AS THE AUSTIN GAP.
AND WE DEFINE THE AUSTIN GAP AS THE BUDGET GAP CREATED BY THE VARIOUS DECISIONS MADE IN AUSTIN THAT HAVE A LONG-TERM IMPACT ON THE CITY'S REVENUES, THE CITY'S EXPENDITURES, THE CITY'S SERVICE LEVELS, AND THEN THE CITY'S ABILITY TO MAINTAIN ITS INFRASTRUCTURE.
AND SO FOR REVENUES, LEGISLATION HAS BEEN PASSED THAT LIMITS THE GROWTH IN PROPERTY TAX REVENUE TO 3.499%.
THE STATE HAS PLACED A LIMITATION ON REVENUE GROWTH THAT IS LESS THAN THE GROWTH IN INFLATION AND EVEN LESS THAN THE GROWTH IN PUBLIC, UH, SAFETY SALARIES, WHICH IS 4%.
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UM, THAT DOES EVEN COVER, UH, INFLATION CAUSES THE GAP BETWEEN REVENUES AND EXPENDITURES THAT'S SHOWN IN THIS SLIDE.AND SO IF YOU RECALL WHEN IT WAS PRESENTED, UM, WE SHARED THAT THE RED, THE RED BAR IS THE ANTICIPATED EXPENDITURES, UM, OVER THE NEXT FIVE YEARS.
THE BLUE BAR IS REVENUES BASED ON PROPERTY TAX REVENUES INCREASING BY 3.499%.
AND THEN THE, THE, THE GRAY BAR IS JUST MAINTAINING, UH, PROPERTY TAX REVENUE FLAT.
NOW THE YELLOW IS THE GAP THAT'S IDENTIFIED.
THAT'S THE GAP THAT IS, UH, CREATED BY SOME LEGISLATION IN AUSTIN.
THAT IS THE DIFFERENCE BETWEEN THE EXPENDITURES THAT WE'RE FORECASTING AND THE REVENUES THAT WE'RE FORECASTING.
AND WHAT I'D LIKE TO POINT OUT IS THIS SLIDE WAS SHOWN TO YOU DURING THE FIVE YEAR FORECAST.
SO IT DID SHOW THAT WE STILL HAD A GAP.
THE ASSISTANT DIRECTORS DID WORK THROUGH SOME, UH, SOME STRATEGIES, AND THEY WERE ABLE TO LIMIT THE GAP TO HERE.
BUT TONIGHT, YOU'LL, THE REVENUES AND EXPENDITURES THAT ARE FORECASTED, THAT GAP HAS BEEN CLOSED AND IT'S BEEN CLOSED BY USING THE STRATEGIES THAT ARE SHOWN ON THE OTHER SIDE OF THE SCREEN.
SO THAT REALLY CONCLUDES MY INTRODUCTORY COMMENTS, AND I'M HAPPY TO ANSWER ANY QUESTIONS REGARDING WHAT I'VE COVERED.
BUT IF YOU HAVE SPECIFIC QUESTIONS RELATED TO REVENUES OR EXPEN, UH, OR EXPENDITURES, UM, WE'LL COVER THOSE WHEN WE DO THOSE PRESENTATIONS.
AND IF YOU HAVE NO QUESTIONS FOR ME, I'M GONNA TURN IT OVER TO KENT.
UH, KIM, THE VERY LAST BULLET, UH, YOU HAVE THERE.
UM, SO STARTING THIS YEAR, WE ARE GOING TO RECOGNIZE ACTUAL SALES TAX OVER BUDGET BUDGETED.
AND THEN, SO THIS IS, UM, ARE WE STILL GOING TO HAVE THE 3.334 ASSUMPTION IN PLACE? SO, UM, SO LET ME CLARIFY SO IT'S NOT REAL CLEAR.
SO THE REVENUE STRATEGIES ARE THE CONSULTANT, RIGHT? AND THEN THE OTHER IS THAT REVENUES USED FOR ONE-TIME COSTS MM-HMM
AND SO THAT IS THE ONE-TIME COST IS THE ACTUAL SALES TAX OVER BUDGET.
WE ARE STILL BUDGETING OR WE WOULD STILL FORECAST BASED ON THE CHANGE IN THE RULE.
THIS IS JUST TELLING YOU THAT ANYTHING THAT'S OVER BUDGET WOULD BE USED FOR ONE TIME CA COST, AND THAT MEANS THAT WE'RE NOT BUILDING THAT INTO PROGRAMS AND SERVICES FOR REVENUE THAT COULD LIKELY GO AWAY.
I'M TRYING TO DECIDE IF I WANT TO ASK A QUESTION NOW OR LATER.
WHEN WE'VE DONE OUR FIVE-YEAR FORECAST IN THE PAST, WE TYPICALLY SHOW AN INCREASE IN THE, WELL, THIS WAS BEFORE THE 3.5% LIMIT.
WE ALWAYS SHOWED A SIGNIFICANT INCREASE IN THE, THE REQUIRED, UM, PROPERTY TAX INCREASE, OUR, OUR OUR TAX RATE TO ACCOMMODATE FOR THAT GROWTH THAT YOU SHOWED IN THE AUSTIN GAP, WE WERE ALWAYS ABLE TO FISCALLY MANAGE DOWN SO THAT WE DIDN'T SEE THAT, YOU KNOW, THAT ESCALATING CURVE.
IS THERE ANY HOPE THAT WE'LL BE ABLE TO DO THAT WITH THE AUSTIN GAP, OR IS IT STILL AN UNKNOWN IF, IF I FOLLOW THE QUESTION CORRECTLY,
I'M GLAD SHE DID UNDER THE, UH, THE, THE PREVIOUS WAYS THAT WE WERE DOING THE FIVE YEAR FORECAST, YOU'RE CORRECT.
IT USED TO SAY SHOOT OUT THERE IN TERMS OF THE EXPENDITURES.
RIGHT? AND SO PROBABLY STARTING ABOUT FOUR OR FIVE YEARS AGO, WE, WE CHANGED THE WAY WE DO THE FIVE YEAR FORECAST.
UM, AND THE WAY THAT WE LOOK AT IT, IT'S MUCH MORE CONSERVATIVE ON OUR PART NOW.
AND SO WE USE THE PLANS LIKE THE WATER AND SEWER PLAN, LIKE THE STREET PLAN, UM, SIDEWALKS, THOSE KINDS OF THINGS.
AND WE STAY WITHIN THE PARAMETERS THAT WE'VE ESTABLISHED FOR GROWTH BECAUSE SINCE 2017, 1817, I GUESS, SO THE FIRST YEAR WOULD'VE BEEN 2019, SB TWO, IT, IT'S CORRECT FOR US TO MAKE THAT ADJUSTMENT BECAUSE SB TWO IS IN PLACE THERE, THERE'S NO REASON TO SHOW SOMETHING THAT JUST CAN'T HAPPEN.
DOES THAT MAKE SENSE? YES, IT DOES.
UM, GOOD EVENING, MAYOR AND COUNSEL.
UM, I, I WANT TO BEGIN BY MENTIONING THAT THERE IS AN ITEM TITLED CAPITAL OUT OUTLAY ON THE AGENDA.
AND IT'S PAGE FOUR IN YOUR PACKET.
AND I JUST WANNA SAY THAT THOSE ARE VERY ROUTINE IN NATURE, THOSE EXPENDITURES, THOSE PURCHASES, UM, FIBER OPTIC CABLE FOR TRAFFIC, LAPTOPS FOR THE POLICE DEPARTMENT,
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FITNESS EQUIPMENT REPLACEMENT BOOKS AND MATERIALS FOR THE LIBRARY.UM, I DO NOT HAVE A SLIDE ON THOSE, SO I'M NOT REALLY GONNA TALK ABOUT 'EM, BUT I WANTED TO MENTION 'EM BECAUSE THEY ARE IN THE PACKET.
UM, AND THE INFORMATION IS IN THERE, AND CERTAINLY IF YOU HAVE QUESTIONS ABOUT ANY OF THOSE, WE CAN ANSWER THOSE.
UM, BUT I WILL COVER NEW AND ENHANCED ACTIVITIES OR PURCHASES AS PART OF THE DEPARTMENT EXPENDITURE DISCUSSION.
I ALSO WANT TO REMIND YOU OF THE CITIZEN SATISFACTION SURVEY AND THE HIGH MARKS IN SATISFACTION, 98% GOOD OR EXCELLENT OVERALL QUALITY OF LIFE.
AND RECALL THAT THE CONSULTANT MADE, MADE MENTION THAT HE DOES HAD NOT SEEN THOSE KIND OF RESULTS AND ANY OTHER CITY THAT THEY'VE WORKED IN OR THAT HE'S SEEN SIMILAR SURVEYS.
AND THIS IS A REFLECTION OF THE EFFECTIVE USE OF REVENUE IN THE DELIVERY OF SERVICES TO OUR RESIDENTS AND HOW THOSE SERVICES ARE DELIVERED.
FINALLY, CONTINUING THE THEME FROM THE SPECIAL REVENUE FUND DISCUSSION, I'LL BE FOCUSING ON PROGRAMS AND SERVICES AND DESCRIBING THE APPROACH THAT EACH DEPARTMENT TOOK IN DEVELOPING THEIR FORECASTED EXPENDITURES.
KENT, WE HAVE A QUESTION HERE.
SO THE CAPITAL OUTLAYED, THE 360 7 OR WHATEVER THIS IS, THAT'S ACTUALLY IN THE GENERAL FUND BUDGET FOR THIS YEAR.
IT'S NOT LIKE ONE TIME USE OF ANY FUNDS.
IT'S IN THE BUDGET THAT IS IN THE BUDGET.
UM, THIS SLIDE, THESE GRAPHICS SHOW THE EXPENDITURES BY FUNCTION, UH, FOR FISCAL YEAR 26 AND FI FISCAL YEAR 27.
I WANT TO NOTE THAT THERE IS AN INCREASE, AND YOU'LL SEE THAT IN THE GENERAL GOVERNMENT, WHICH REFLECTS, AS KIM MENTIONED EARLIER, $5 MILLION TRANSFER, UH, TO IMF, THAT COUNCIL SUPPORTED, AS WELL AS THE $4.95 MILLION TRANSFER TO FULLY FUND THE PUBLIC SAFETY REPLACEMENT FUND THAT SHE MENTIONED.
THESE WILL ALSO SHOW UP AND BE DISCUSSED WHEN KIM COVERS THE FUND BALANCE.
WALK FORWARD THESE GRAPHICS SHOW EXPENDITURES BY CLASSIFICATION.
UH, THIS SLIDE REFLECTS, UH, EXPENDITURES THAT MAINTAIN COMPENSATION AT THE TOP THIRD OF THE COMPARATOR CITIES AS, UM, AS DIRECTED AND SUPPORTED BY COUNCIL ALSO, WHICH, AND THAT INCLUDES THE 3% MERIT FOR GENERAL EMPLOYEES, AS WELL AS A 4% STEP FOR PUBLIC SAFETY.
IN THIS SLIDE, I'M GONNA FOCUS ON EXPENDITURES FOR, UH, FOR FIRE AND LIFE SERVICES AND THE POLICE DEPARTMENT, THE GENERAL FUND, STARTING WITH FIRE, THE GENERAL FUND COVERS THE MAJORITY OF THE FIRE DEPARTMENT OPERATIONS PRIORITIES ARE OPERATIONAL READINESS IN MEETING THEIR ALL HAZARDS RESPONSE MISSION.
THEY PREPARE THE COMMUNITY THROUGH EDUCATION AND RISK MANAGEMENT.
AND THAT'S, UM, COVERED IN THE, THE LIFE SAFETY PARK AND INSPECTIONS BUDGET.
THEY, UH, ARE FOCUSED ON PRESERVING THE ISO ONE RATING, WHICH DIRECTLY AFFECTS HOMEOWNERS INSURANCE RATES.
THEY BUILD RESILIENCE WITHIN THE FIRE DEPARTMENT AND THE COMMUNITY.
AND THROUGH THOUGHTFUL PLANNING AND RESPONSIBLE STEWARDSHIP, THEY HAVE IDENTIFIED THE ELIMINATION OF TWO FIREFIGHTER POSITIONS THAT WERE VACATED DURING THIS FISCAL YEAR.
THOSE REDUCTIONS WERE RECOMMENDED BY CHIEF RICHARDSON AND CONFIRMED BY CHIEF ARTHUR.
THE PRESSURES THAT THEY FACE AND THE INCREASES IN EXPENDITURES ARE RELATED TO MARKET CONDITIONS, INCREASE IN COST OF EQUIPMENT AND GEAR.
SO, IN SUMMARY, FOR FIRE, THEY'VE EMPLOYED STRATEGIES OF REORGANIZING ROLES AS VACANCIES OCCUR, AND REEVALUATING VENDORS AND CONTRACTS.
THEY DO HAVE A PROJECT INCLUDED.
UM, AND IT'S $150,000 TO REWRITE THE CITY'S EMERGENCY MANAGEMENT PLAN.
THIS IS AN UNFUNDED MANDATE FROM THE STATE.
THE STATE NO LONGER ACCEPTS THE TYPE OF EMERGENCY MANAGEMENT PLAN THAT WE HAVE IN PLACE, AND IT TYPICALLY WOULD JUST GO THROUGH AN UPDATE.
UM, THE, THE PLAN REQUIRES A FULL REWRITE, AND SO THE $150,000 WOULD SUPPORT, UH, CONSULTING SUPPORT.
UH, THEY WOULD SUPPORT STAFF AS WE WENT THROUGH THAT REWRITE, UH, PROCESS.
AND YOU'LL SEE THAT IN THE FUND BA COMING OUT OF THE FUND BALANCE THE NEXT TIME YOU SEE THE BUDGET, IT'S NOT CURRENTLY IN THAT FUND, UH, FUND BALANCE EXPENDITURE.
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OTHER EQUIPMENT HAS BEEN MOVED, AS I MENTIONED, TO THE PROPOSED PUBLIC SAFETY REPLACEMENT FUND, INCLUDING MOBILE RADIOS AT $55,000.CARDIAC MONITOR, UH, MAINTENANCE AT $22,000.
THIS IS FOR SECURING DRUGS AND OTHER SENSITIVE MATERIALS AT $42,000.
AND RESCUE EXTRICATION EQUIPMENT.
THINK OF THE JAWS OF LIFE, THAT'S $200,000.
SO THESE ARE, YOU KNOW, THESE ARE THE TYPES OF EQUIPMENT AND EXPENDITURES THAT HAVE TO BE REPLACED AS PART OF THE FIRE OPERATION ON A REGULAR BASIS.
THAT IS WHY WE ARE RECOMMENDING THE STRATEGY OF CREATING THE PUBLIC SAFETY REPLACEMENT FUND.
SIMILAR TO OUR TECHNOLOGY AND, UH, AND CAPITAL REPLACEMENT FUND, POLICE EXPENDITURES, THE GENERAL FUND COVERS THE MAJORITY OF POLICE DEPARTMENT OPERATIONS.
UH, WE TALKED ABOUT THE CCPD LAST WEEK.
THE PRIORITY FOR THE POLICE DEPARTMENT IS COMMUNITY SAFETY.
AND YOU'VE HEARD CHIEF BARTON TALK ABOUT, UM, THE FACT THAT COMMUNITIES MAKE COMMUNITIES SAFE.
BUT THE POLICE DEPARTMENT CERTAINLY HAS A ROLE, UH, WHEN FOLKS ACT UP, UM, POLICE DEPARTMENT, UH, HAS TO GET ENGAGED.
AND THE WAY THEY DO THAT, THEY PLACE A HEAVY FOCUS ON HIRING AND TRAINING THE RIGHT KINDS OF POLICE OFFICERS.
THEY CONDUCTED A FULL SCRUB OF THEIR OPERATING BUDGET TO REALIZE EFFICIENCIES.
UM, THEY HAVE A RESOURCE FOCUS ON OUTREACH TO PARTNER WITH THE COMMUNITY.
UH, I KNOW THEY'RE INCREASING THE NATIONAL NIGHT OUT EFFORTS, AND THEY'VE CAREFULLY EVALUATED VENDORS AND PROVIDER, UH, PROVIDERS TO REALIZE EFFICIENCIES THROUGHOUT THEIR BUDGET.
THIS NEXT SLIDE ADDRESSES PROPOSED EXPENDITURES OR PROJECTED EXPENDITURES FOR THE PUBLIC WORKS GENERAL FUND.
BUT, UH, GENERAL FUND, UH, THEIR FOCUS IS ON RESILIENCY AND SUSTAINABILITY.
AND WE TALKED ABOUT THE IMF LAST WEEK AND, UH, THE WATER SEWER FUND AND THE INVESTMENT IN, IN OUR ASSETS.
UM, SO THIS FUND IS ALSO FOCUSED ON REINVESTING AND MAINTAINING THE CITY'S LARGEST ASSETS, INCLUDING STREETS AND FACILITIES.
THEY WORK TO ENSURE EFFICIENT TRAFFIC FLOW, WELL MAINTAINED FACILITIES, FUNCTIONAL AND EFFECTIVE VEHICLES AND EQUIPMENT COST DRIVERS FOR PUBLIC WORKS, UH, INCLUDE MARKET INCREASES IN FUEL, ELECTRICITY, AND EQUIPMENT SUCH AS UNIFORMS, TOOLS, ET CETERA.
THEY CAREFULLY EVALUATED VACANCIES AS THEY OCCURRED, AND THEY'RE REDUCING, UH, THEIR, UM, THEIR COUNT BY ONE SENIOR MAINTENANCE WORKER IN THE STREETS GROUP.
THEY CONSTANTLY EVALUATE, UH, PUBLIC WORKS CONSTANTLY EVALUATES VENDORS AND CONTRACTORS TO REALIZE EFFICIENCIES WITHIN THEIR BUDGET.
THIS SLIDE, COMMUNITY EXPERIENCES, GENERAL FUND BUDGET ADDRESSES THE, UH, THE FORECAST EXPENDITURES MAINLY FOR, FOR COMMUNITY EXPERIENCES.
AND I'M GONNA WALK THROUGH THESE.
UM, THE COST DRIVERS FOR CE ARE RELATED TO, TO BUDGETING PART-TIME EMPLOYEES AND MATERIAL COSTS AND PARK MAINTENANCE AND MARKET DRIVERS AROUND EQUIPMENT AND MATERIALS.
THE LIBRARY STARTING AT THE TOP HERE, UH, THE LIBRARY HAS LEVERAGED MORE WEB-BASED APPLICATIONS, NEW AUTOMATIC MATERIALS HANDLING AND REVE RESERVATION SOFTWARE, UH, TO IMPROVE EFFICIENCY.
THE, THE SCHOOL YEAR, UH, 26 BUDGET INCLUDED A ONE-TIME FURNITURE EXPENDITURE THAT IS NOT INCLUDED IN THE FISCAL YEAR 27, UH, PROPOSED EXPENDITURES.
SO THOSE ARE THE REDUCTIONS IN IN THE LIBRARY.
THE PARKS BUDGET IS HEAVILY FOCUSED ON MAINTAINING THE QUALITY OF THE PARKS, THE PLAYING FIELDS, AND THE PARKS.
FACILITIES COST DRIVERS ARE RELATED TO MATERIAL COST INCREASES.
THEY'VE EXPLORED OFFSETS AND EFFICIENCIES THROUGHOUT THE BUDGET TO OFFSET THOSE MARKET PRESSURES.
THE CORE CONTINUES TO EVALUATE PROGRAMS AND OPERATING TIMES.
WE HAVE INCLUDED THREE SERVICE CHANGES OF NOTE TO IMPROVE EFFICIENCY WITHIN THE CORE FORECASTED EXPENDITURES.
THE FIRST OF THOSE IS TO DISCONTINUE ADULT ATHLETIC LEAGUES.
WE HAVE SEEN SIGNIFICANT DECLINE IN PARTICIPATION IN ADULT ATHLETIC LEAGUES OVER THE PAST FEW YEARS, WHICH IS CONSISTENT WITH THE NATIONAL TREND.
[00:20:02]
THAT PROGRAM OPERATED AT A LOSS OF $1,069.BY DISCONTINUING THE ADULT ATHLETIC LEAGUES, WE WOULD REALIZE A BUDGET SAVINGS OF OVER $34,000.
WE ALSO ARE PROPOSING TO DISCONTINUE THE SUN SUNSHINE ROOM, WHICH IS THE CHILD WATCH AT THE CORE.
ALSO SERVES VERY FEW, UH, MEMBERS.
IN 2025, THERE WERE 93 INDIVIDUAL MEMBERS THAT USED THE SUNSHINE ROOM FOR A TOTAL OF 2047 CHECK-INS.
IT GENERATED $5,922 IN REVENUE.
WE EXPECT TO BE ABLE TO OFFSET THAT REVENUE BY UTILIZING THAT ROOM FOR RENTALS.
AT THE SAME TIME REALIZING OPERATING SAVINGS OF 35,007 $760.
THE LAST RECOMMENDATION ASSOCIATED WITH THE CORE IS TO CLOSE THE FACILITY AT 8:00 PM MONDAY THROUGH THURSDAY.
THE CORE ALREADY CLOSES AT 8:00 PM ON FRIDAY AND 6:00 PM ON SATURDAY AND SUNDAY IN 2025, WE HAD, UH, OVER 7,000 CHECK-INS, UH, AFTER 8:00 PM FOR 1300 UNIQUE USERS.
ROUGHLY ONE THIRD OF THE SAME, OF THE NUMBER OF CHECK-INS.
IF YOU COMPARE TO THE 5:00 AM TO 7:00 AM PERIOD.
SO THAT LAST, THE LAST TWO HOURS COMPARED TO THE FIRST TWO HOURS SERVES ABOUT A THIRD.
A THIRD OF THE, UH, THE CUSTOMERS, THE 7:00 AM UM, CHECK-IN SERVED A 1300 UNIQUE MEMBERS.
THE BUDGET SAVINGS BY CLOSING AT 8:00 PM MONDAY THROUGH THURSDAY WOULD BE $24,000 IN SALARY.
SAVINGS MAY BE SAVINGS, ADDITIONAL SAVINGS RELATED TO THE FACILITY CLOSING.
UM, BUT WE'RE ONLY ACCOUNTING FOR THE SALARY SAVINGS.
WITH THAT, UH, WITH THAT SHORTENING OF THE CLOSING TIME TO PREPARE THE USERS FOR THESE CHANGES, WE WOULD EMPLOY A ROBUST CHANGE MANAGEMENT MANAGEMENT STRATEGY.
WE HAVE TIME BEFORE THEY WOULD BE IMPLEMENTED.
THAT WOULD INCLUDE COMMUNICATION, POSTING, FAQS, REACHING OUT TO THE INDIVIDUAL USERS, ET CETERA, TO MAKE THE CHANGE AS AS SMOOTH AS POSSIBLE.
AND RELATED TO THESE CHANGES, THERE'S A REDUCTION IN STAFFING AT THE CORE OF ONE RECREATION COORDINATOR.
MOVING ON TO CAMPS AND ATHLETICS, THIS IS A SHORT ONE 'CAUSE THEIR BUDGET WAS MOVED INTO THE CORE BUDGET.
CAMPS AND ATHLETICS ARE OPERATED OUT OF THE CORE.
SO THEY NOW, UH, YOU WOULD SEE THAT THE, UM, PROJECTED EXPENDITURES AND THE CORE BUDGET.
COMMUNITY ENGAGEMENT IS THE DIVISION THAT'S FOCUSED ON COMMUNICATION AND EVENT PROGRAM PROGRAMMING.
COST DRIVERS ARE IN INCREASES IN, IN VENDOR COSTS.
UH, AND THIS IS WHERE YOU WOULD SEE THE REDUCTION IN OF $146,000 FOR THE GARDENS AND THE FARMER'S MARKET THAT WE TALKED ABOUT.
ALSO THIS YEAR, UM, KALEIDOSCOPE, YOU MAY RECALL, KALEIDOSCOPE PARTNERED WITH ONE COP HELL IN ORDER TO TRY TO REVIVE THE COMMUNITY INTEREST IN THAT PROGRAM.
AND THAT EVENT STAFF'S PROPOSAL IS THAT THIS EVENT BECOMES THE ONE COP HELL CONFERENCE.
SO THE KALEIDOSCOPE NOMENCLATURE WOULD DROP AND IT WOULD BECOME THE ONE COP HELL CONFERENCE.
SO, UH, THOSE TWO EVENTS WERE COMBINED THIS YEAR, AND THEY WOULD BECOME ONE EVENT.
UH, UNDER THIS PROPOSAL, THE KALEIDOSCOPE BUDGET WOULD THEN BE ALLOCATED TO ADDITIONAL OLD TOWN EVENT ACTIVATIONS, THINGS LIKE ADDITIONAL SUNSET SOCIALS.
SO THAT BUDGET REMAINS IN THE COMMUNITY ENGAGEMENT DIVISION.
THE WAGON WHEEL TENNIS AND PICKLEBALL CENTERS FOCUSED ON MEETING THE NEEDS OF THE TENNIS AND PICKLEBALL COMMUNITY.
UH, NOTE IS THE OFFERING, THE PROPOSED OFFERING OF HOSTING BOTH UTR AND USTA TOURNAMENTS AT WAGON WHEEL.
THERE IS AN EXPEN EXPENDITURE, UM, TO HOST THOSE TOURNAMENTS, BUT THE EXPECTATION IS THAT WILL BE MORE THAN OFFSET BY THE COST RECOVERY OF HOSTING THOSE TOURNAMENTS.
'CAUSE OF THE REVENUE GENERATED AT THE BECK, THEY HAVE WORKED AND RE REIMAGINED THE PROGRAMS THAT THEY OFFER AND THEY ARE SHIFTING AND PROPOSING TO HOST 30% OF THEIR PROGRAMS AND EVENTS BY PARTNER PRESENTED ITEMS. SO, UH, THEY HAVE REACHED OUT AND BEGUN PARTNERSHIPS WITH, UM, ENTITIES SUCH AS THE P PAROLE MUSEUM, THE TRINITY AUDUBON CENTER, THE DALLAS ZOO, THE BLACKLAND PRAIRIE RAPTOR CENTER.
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AND THE INTENT IS FOR THAT, THOSE GROUPS WOULD LEAD 30% OF THE PROGRAMS GOING FORWARD WITH STAFF BEING THERE AS IN A SUPPORT ROLE THAT ALLOWS FREE STAFF UP TO FOCUS ON, UM, HIGHER IMPACT ACTIVITIES.UH, CAPITAL ITEMS AND PROJECTS IMPACTING CE FACILITIES INCLUDE SECURITY CAMERAS, UM, AT THE SENIOR CENTER, MULTIPURPOSE ROOM FLOORING AT THE SENIOR CENTER.
AND THE FEASIBILITY STUDY FOR THE SENIOR CENTER AS WELL AS GLASS WALL REPLACEMENT AT THE LIBRARY, WHICH HAS, UM, HAS BECOME AN UNSAFE ISSUE AT THE LIBRARY TO CONCLUDE COMMUNITY EXPERIENCES EVALUATED POSITION VACANCIES AS THEY OCCURRED, ABLE TO REDUCE ONE RECREATION COORDINATOR IF EVALUATED AND ARE RECOMMENDING CHANGES IN SERVICE WHEN THE VALUE IS LIMITED.
THEY'VE ALSO REEVALUATED VENDORS AND PARTNERS TO DELIVER SERVICES IN A DIFFERENT MANNER TO IMPROVE EFFICIENCY AND EFFECTIVENESS.
AND THAT INCLUDE, THAT CONCLUDES MY DEPARTMENTS.
TRACY'S GONNA PRESENT THE NEXT, UH, GROUP OF FORECASTED EXPENDITURES.
I DON'T SEE ART CENTER ITEMIZED.
ART CENTER IS NOT FUNDED OUTTA A GENERAL FUND.
THAT, SO YOU ONLY HAVE, THIS IS ALL GENERAL FUND.
SO YOU WILL HAVE A PRESENTATION FOR THE ART CENTER BREAKING DOWN, LIKE THIS ART CENTER WAS COVERED DURING THE CRDC AND THE HOT, UH, SPECIAL REVENUE BUDGETS.
UM, SINCE YOU'RE ALREADY HERE ON THIS PAGE, UH, KEN, UM, YOU MENTIONED, UH, WE ARE MERGING KALEIDOSCOPE WITH, UH, ANOTHER EVENT.
UM, SO WHAT, WHAT WAS THE REASON IS KALEIDOSCOPE PARTICIPATION NOT GOOD? BECAUSE THAT'S ONE THING THAT FOCUSES ON THE DIVERSITY IN CAPEL.
SO, UH, I WANNA UNDERSTAND, UH, WHY WE ARE SHUTTING THAT DOWN.
THE PARTICIPATION HAS BEEN DROPPING OVER YEARS AND THE PLAN IS TO TAKE THE MOST SUCCESSFUL, THE MOST, UM, VALUED PARTS OF KALEIDOSCOPE AND KEEP THOSE IN THE ONE COPPEL CONFERENCE AND, AND ONE COPPEL CONFERENCE.
HAS IT BEEN HAPPENING? UH, NO.
ONE COP AND KALEIDOSCOPE COMBINED THIS YEAR.
IT WASN'T THE, THE BRANDED ONE COPPEL EVENT.
BUT IT WAS A COMBINED EVENT THIS YEAR.
ONE MORE QUESTION, MAYOR, IF YOU CAN PLEASE GO BACK TO THE PUBLIC SAFETY.
UH, YOU MENTIONED THAT WE ARE CREATING THIS PUBLIC SAFETY FUND WITH $5 MILLION.
HOW ARE WE SEEING IT? HOW ARE WE GOING TO FUND IT ONGOING? AND IS THAT BALANCE OF THAT FUND ALWAYS GOING TO BE AT 5 MILLION? SO IT'S, IT'S BEING FUNDED INITIALLY THROUGH A TRANSFER FROM THE, UH, FUND BALANCE.
AND YOU'LL SEE THAT IN, UH, MS. TIAN WHEN SHE COVERS THE WALK FORWARD.
AND WITH, AS WITH ALL OF THE REPLACEMENT FUNDS, WE MAKE AN ANNUAL CONTRIBUTION FOR, TO REPLACE OVER TIME, UH, OR TO BUILD THE REPLACEMENT, UH, REVENUE OVER TIME SO THAT WHEN WE NEED TO BUY THAT THING AGAIN IN FIVE OR 10 YEARS, WE HAVE BUILT UP THE FUNDS OVER TIME SO THAT WE HAVE IT.
SO THERE'S NOT THIS, THIS CLIFF.
WHEN WE REACH THE END OF LIFE MM-HMM
AND, AND REMIND ME AGAIN, WHAT ARE WE, UH, HOW ARE WE GOING TO USE THIS 5 MILLION? WHAT ARE THE SPECIFIC ITEMS WE ARE TARGETING TO SPEND? SO THIS WILL COVER THE INITIAL PURCHASE OF ACTUALLY FIVE YEARS OF ITEMS FOR THE POLICE AND FIRE.
CAN YOU MADE A RECOMMENDATION TO CLOSE THE COURT AT 8:00 PM AND SAVINGS OF SALARY $24,000, RIGHT? YES, SIR.
THERE ARE PEOPLE WHO COMES THERE TO WORK OUT AFTER EIGHT O'CLOCK, THEY PUT KIDS TO SLEEP AND SO ON AND SO FORTH.
SO I HAVE PEOPLE THAT I KNOW ARE GOING THERE AFTER EIGHT O'CLOCK ON MONDAY, THURSDAY.
UM, WHAT ARE THE OTHER SAVINGS IN ADDITION TO $24,000 SALARY THAT YOU ARE EXPECTING? WE EXPECT THAT THERE WOULD BE OTHER SAVINGS THEY'RE HARD TO QUANTIFY RIGHT NOW.
SO THE PLAN WOULD BE TO TRACK THOSE SAVINGS OVER THE NEXT YEAR IF WE, IF WE IMPLEMENT THIS, IT'S A RECOMMENDATION.
UM, AND WE WOULD TRACK THOSE SAVINGS, UM, RELATED TO THE FACILITY NOT BEING OPEN.
SO SAVINGS IN, UM, ELECTRICITY AND WATER, THINGS LIKE THAT.
[00:30:01]
IS WHAT WE HAVE, UM, I GUESS CALCULATED.IT'S A HARD NUMBER OF, THAT'S STRICTLY THE SALARIES.
UM, WHAT? I WAS TRYING TO WAIT.
UM, SO ONCE WE TRANSFER THE 5 MILLION FOR THAT EQUIPMENT FUND, ARE WE GOING TO THEN, LIKE ON THE BALANCE CARRY FORWARD, MOVE 500,000, 10% IN EVERY YEAR AFTER THAT? IT'S NOT 10%.
SO IF THE LIFE OF A PIECE OF EQUIPMENT IS FIVE YEARS, IT'LL BE 20%.
IF IT'S 10 YEARS, IT'LL BE 10% OF THAT COST.
IT'S, I MEAN, IN ROUGH TERMS. UH, BUT WE ALSO TRACK IF THERE'S A COST INCREASE TO THAT ITEM AND WE ADJUST OVER TIME.
SO THE $5 MILLION REPRESENTS WHAT WE PROJECT WILL BE THE REPLACEMENT COST FOR EQUIPMENT BASED ON THEIR CURRENT SHELF LIFE OVER THE NEXT FIVE YEARS.
IT IS THE FULL COST TO PURCHASE THE EQUIPMENT THAT'S NEEDED FOR THE, THE NEXT FIVE YEARS.
UH, UH, KENT, JUST UH, A QUESTION ABOUT, UM, I DIDN'T HEAR THE SENIOR COMMUNITY CENTER.
UM, DID I MISS THAT? DID YOU HAVE ANY, ANY SPEAKING? I DIDN'T KNOW IF, BECAUSE I SAW THAT THERE WAS A, JUST AN INCREASE OF 91,000, SO I DIDN'T KNOW IF YOU HAD ANY TALKING POINTS ON, ON THAT.
NO, IT'S, IT'S REALLY, I MEAN, IT'S A PRETTY FLAT BUDGET.
SO, UM, OTHER THAN THE PROJECTS THAT I TALKED ABOUT MM-HMM
UM, THE, THE, UH, THE CAMERAS, THE, UH, FLOOR REPLACEMENT, UM, THERE WAS ONE THE FLOORING AND THEN ALSO CONDUCTING THE FEASIBILITY STUDY.
UM, AND THEN, UM, TO FOLLOW UP ON WHAT BIJU SAID, I ACTUALLY AM IN AGREEMENT WITH HIM.
UM, I'M NOT IN FAVOR OF, OF REDUCING THE CORE HOURS.
UM, I'M ALSO NOT A BIG FAN OF, UH, CLOSING THE SUNSHINE ROOM EITHER BECAUSE I UNDERSTAND THAT, UH, JUST, I KNOW THERE'S SOME PRIVATE, YOU KNOW, UH, WORKOUT PLACES THAT HAVE ELIMINATED THEIR CHILDCARE AS WELL.
UH, WHAT I WOULD PROPOSE THAT WE LOOK AT IS, UM, ON AN ANNUAL BASIS, LOOK AT STRATEGIC USE OF FUND BALANCE ON THAT AND MAYBE LOOK AT THAT EVERY YEAR AND SEE IF, UM, YOU KNOW, AS 3.3, THREE FOUR HAS NOT GONE INTO EFFECT UNDERSTANDING THAT WE NEED TO, WE NEED TO BE CAREFUL, WE NEED TO LOOK AT THESE EXPENDITURES AND STUFF.
BUT I WOULD, I WOULD ASK THAT WE MAYBE LOOK AT, AT THE CORE HOURS ON AN ANNUAL BASIS TO SEE IF THAT'S SOMETHING THAT WE CAN SUSTAIN, UM, UH, IF WE HAVE THE FUNDS BECAUSE WE HAVE ACTUALIZED THAT EXTRA REVENUE, YOU KNOW, OVER SEVERAL YEARS BECAUSE THE, THE RULE HASN'T GONE INTO EFFECT 'CAUSE OF OUR EFFORTS.
SO THE ONLY CAUTION I WILL GIVE YOU IS I NEVER WANT TO USE THE ONE TIME MONEY FOR ONGOING OPERATIONS.
AND, AND WHAT I WAS GONNA RECOMMEND IS INSTEAD OF YOU TELLING THEM WHERE TO GET THE MONEY FROM, ASK THEM TO GO INVESTIGATE ON THEIR OWN.
I MEAN, JUST, I DON'T LIKE TO BRING UP A PROBLEM WITHOUT PROVIDING AT LEAST A SOLUTION.
I UNDERSTAND THAT THAT'S STAFF'S JOB AND I, I GET THAT.
I DON'T WANNA STEP OVER ON TOES, BUT, UM, I'M JUST, I'M, I'M NOT IN FAVOR OF REDUCING HOURS, UM, AT THE CORE.
AND I THINK CHILDCARE OPTIONS ARE GETTING LESS AND LESS.
SO, UM, JUST THOSE ARE MY THOUGHTS ON THAT.
SO, UM, BUT THANK YOU GUYS VERY MUCH.
UH, YOU KNOW, DEFINITELY, UH, APPRECIATE ALL THE HARD WORK ON THE REST OF THE, OF THE BUDGET
WE USED TO HAVE EGG EASTER EGG, UH, EVENT OR EASTER EGG.
WE USED TO HAVE KALEIDOSCOPE AND WE HAVE CONSOLIDATED KALEIDOSCOPE WITH THE WHAT PROJECT? I FORGOT.
SO WHAT THESE ALL ARE AFFECTING OUR COMMUNITY, RIGHT? AND HOW MUCH SAVINGS ARE YOU FINDING FROM ALL THIS COMBINING OR, YOU KNOW, PUTTING TOGETHER, I I CLOSING, CLOSING CORE AT TWO EIGHT O'CLOCK SAVES $24,000.
WHAT ARE THE SAVINGS OF COMBINING THESE EVENTS? I, I JUST, WELL, AND I, AND I, YEAH, AND I MENTIONED IT, RIGHT? SO WHEN WE, WHEN WE REDUCE THE SERVICES, IT ALSO CREATES CAPACITY TO EVALUATE THE POSITIONS WHEN THEY COME UP.
SO THEY ARE REDUCING, RECOMMENDING OR PROPOSING TO REDUCE THE NUMBER OF PERSONNEL AT THE CORE BY ONE POSITION THAT IS TIED TO THE REDUCTION OF THESE SERVICES.
NO, I'M TALKING ABOUT THE EGG EASTER EGG THING THAT WE USE THOSE, SO THOSE PROGRAMS REQUIRE STAFF TO PLAN THEM, TO PROGRAM THEM.
AND SO WHEN THEY ARE PULLED BACK, THAT CREATES CAPACITY.
[00:35:01]
WHETHER WE CAN REDUCE A POSITION WHEN IT BECOMES AVAILABLE.AND THOSE ULTIMATELY, I MEAN, WE'VE ALL TALKED ABOUT SERVICES.
WE NEED THE PERSONNEL TO PROVIDE THE SERVICES AND THERE WILL NEED TO BE CHANGES IN SERVICES TO CLOSE THE AUSTIN GAP AND, AND PROVIDE THE FLEXIBILITY TO EVALUATE THE POSITIONS THAT FILL THOSE, THAT PROVIDE THOSE SERVICES.
BUT IF WE, IF WE CONTINUE WITH THE SERVICES UNCHANGED, IT MAKES IT VERY DIFFICULT TO IDENTIFY POSITIONS THAT CAN GO UNFILLED WHEN THEY COME AVAILABLE.
COULD I, COULD I ADD ONE, ONE THING ON EACH OF THOSE ITEMS BEJI, IF I MIGHT? SO FOR THE EASTER EGG HUNT THAT, UM, THAT EVENT, THE EX EX EXTRAVAGANZA, YEAH.
UM, WE ELIMINATED THAT DURING COVID, RIGHT? I MEAN, SO WE COULDN'T HAVE HUNDREDS OF KIDS FLOODING INTO THE PARK FOR THAT EVENT.
WHAT WE HAVE DONE, UM, WE'VE DONE REALLY TWO THINGS, IS IDENTIFIED OTHER PARTNERS IN THE COMMUNITY.
SO A NUMBER OF CHURCHES IN THE COMMUNITY CONDUCT THEIR OWN EGG HUNTS.
AND FOR THE PAST TWO OR THREE YEARS, WE HAVE DONE THE PARK POPUPS.
SO THERE'LL BE JUST SURPRISE EGG HUNTS AT THE NEIGHBORHOOD PARKS THAT HAPPEN IN LIEU OF HAVING LIKE THE GIANT EGG EXTRAVAGANZA EVENT.
SO WE'VE SUBSTITUTED THE LARGER SCALE EVENT FOR THINGS HAPPENING IN THE NEIGHBORHOOD FROM AN EXTRAVAGANZA EASTER PERSPECTIVE.
THE OTHER THING I MIGHT SHARE WITH YOU ON THE KALEIDOSCOPE IS WHEN WE TALK ABOUT THE, THE PRIORITIES, RIGHT? SO THAT CHAIN REPRESENTS A, WHAT THE DATA IS TELLING US AROUND WHERE THE COMMUNITY IS ATTENDING CERTAIN EVENTS.
AND SO KENT MENTIONED THAT THE HIGHEST ATTENDED AND MOST, UM, UH, THE HIGHEST ATTENDED COMPONENTS OF KALEIDOSCOPE ARE GONNA BE RETAINED AS WE MOVE FORWARD INTO THE NEW ONE CUPEL CONFERENCE.
UM, BY DOING THAT, IT FREED UP FUNDING IN THE COMMUNITY EXPERIENCES, UM, FORECASTED EXPENDITURES SO THAT THEY CAN PUSH THOSE FUNDS TOWARDS OLD TOWN ACTIVATION WITHOUT INCREASING THE BUDGET.
AND SO WHILE IT DIDN'T NECESSARILY RESULT IN SAVINGS, IT DID ALLOW US TO AVOID INCREASING THE BUDGET TO SUPPORT THAT PRIORITY THAT WE HAD DOWN IN OLD TOWN.
SO THAT'S MAYBE JUST THE OTHER PERSPECTIVE AROUND, UM, THE CHANGES THAT WE'RE PROPOSING FOR BOAT, FOR AT LEAST KALEIDOSCOPE, UM, IN TERMS OF LIKE, WHAT ARE THE SAVINGS TO THAT, IT REALLY HELPED US NOT INCREASE WHAT WE WOULD BE, UM, FORECASTING FOR THAT EXPENDITURE.
SO WHAT'S INCREASING IN OLD TOWN? SO THE, ONE OF THE TOP PRIORITIES FROM A COUNCIL PERSPECTIVE HAS BEEN ACTIVATING OLD TOWN AND SUPPORTING THE BUSINESSES THAT WE HAVE IN OLD TOWN.
AND ONE OF THE PRIMARY WAYS THAT WE'VE IDENTIFIED TO DO THAT IS THROUGH THE EVENTS THAT WE HOST DOWN THERE.
SO WE HAVE A NUMBER OF EVENING EVENTS AND IF YOU REMEMBER THIS PAST YEAR COMMUNITY, UM, COMMUNITY EXPERIENCES HAS EVENTS THAT THEY HOST DOWN THERE.
AND THEN COMMUNITY DEVELOPMENT HAS BEEN HOSTING SOME EVENTS DOWN THERE AS WELL.
THAT IS NOT NECESSARILY WHAT COMMUNITY DEVELOPMENT DOES ON HOSTING EVENING EVENTS.
AND SO WHAT THEY'RE GONNA DO, THEY'RE GONNA HAND THAT OFF TO COMMUNITY EXPERIENCES 'CAUSE THAT'S WHAT THEY DO WELL AND COMMUNITY, UM, DEVELOPMENT.
AND THAT'S ONE OF THE THINGS WE'LL TALK ABOUT IN MINE.
THEY'LL BE FOCUSING ON DAYTIME ACTIVATION WHEN MOST OF THOSE BUSINESSES ARE OPEN SO THAT MAYBE WE CAN TRY SOMETHING NEW THERE, UM, KIND OF WITH THE SAME DOLLARS AGAIN.
SO THIS IS SHIFTING THE PRIORITIES SO THAT WE CAN ADDRESS SHIFTING THE RESOURCES SO WE CAN ADDRESS THE PRIORITIES THAT HAVE BEEN EXPRESSED BY COUNSEL, PARTICULARLY ON THE WORK PLAN.
SO THAT'S REALLY WHERE WE GET THAT PRIORITY ON WHY, WHY IS THAT IMPORTANT? SO WHAT I'M HEARING IS WE ARE CUTTING DOWN ON CULTURAL ACTIVITIES LIKE KALEIDOSCOPE AND INVESTING THAT MONEY INTO BUSINESS SO THAT MORE TRAFFIC WILL COME TO OLD TOWN DAYTIME, I WOULD NOT CHARACTERIZE.
SO THE, THE SWITCH TO INCORPORATING THE KALEIDOSCOPE EVENTS INTO THE ONE COP CONFERENCE IS INTENDED TO MAINTAIN THE CELEBRATION OF THE DIVERSITY THAT WE HAVE IN OUR COMMUNITY, LIKE DAYTIME.
SO THOSE ARE TWO SEPARATE THINGS.
SO WHEN WE TALK ABOUT THE ONE COP HILL CONFERENCE THAT'S GONNA TAKE ALL OF THE, UH, MOST POPULAR COMPONENTS OF KALEIDOSCOPE THAT WILL, AND I ACTUALLY, I DON'T KNOW FROM A COMMUNITY EXPERIENCES PERSPECTIVE IF THAT'S, OR A, I'M SORRY, AN EMPLOYEE EXPERIENCE PERSPECTIVE THAT WAS KIND OF LIKE A, A DAYTIME, A FULL TIME, A FULL DAY'S WORTH OF ENTERTAINMENT.
UM, AND SO YES, THAT'S GONNA BE A COMBINED, MY GUESS WOULD BE A DAYTIME EVENT.
IT WAS HELD ON A WEEKEND THIS YEAR.
UM, THIS THE NET, UH, OF CALLING IT ONE
[00:40:01]
COPAL CONFERENCE.WHY DON'T WE CALL IT ONE COPAL COL SCHOOL? SO YOU JUST COMBINE BOTH EVENTS AND KEPT THE NAMES.
WE'RE CERTAINLY, WE APPRECIATE YOUR ANSWER OPEN TO THAT.
I MEAN,
I THINK THE, YEAH, THE MAIN POINT IS COMBINING THE EVENTS ADDRESSING
JUST, UM, THE KALEIDOSCOPE WAS HELD IN OLD TOWN AND HAS BEEN THE PAST COUPLE YEARS, CORRECT? CORRECT, YES.
SO WE'RE STILL, WE, IT'S BASICALLY LIKE RESHAPING ACTIVATION AT OLD TOWN IN SAME, BUT IT, THERE'S STILL ACTIVITY.
IT'S LIKE IN ONE THING TO ANOTHER.
I REMEMBER A LOT OF ACTIVITIES RIGHT THERE.
I MEAN, AND I WOULD JUST COMMENT EVEN, YOU KNOW, BEFORE KALEIDOSCOPE WE HAD OAK VALLEY, WHICH WAS A, YOU KNOW, A BIG COMMUNITY EVENT AS WELL.
SO, UH, YOU KNOW, THAT WE HAD AT, UH, AND, AND WHAT HAPPENED, UH, ATTENDANCE ROLLED OFF.
SO YOU GO TO SOMEBODY ELSE, OH, YOU JUST, YOU FRESHEN IT UP.
SO, AND BEFORE OAK FEST WAS PICK FEST, I CANNOT COMMENT ON PICK FEST, SIR
SO YEAH, THE, THE, THE DIFFERENT, THE DIFFERENT, UH, EVENTS IN, IN, UH, AT THE PARK HAVE CHANGED OVER TIME AND THEN IT'S TIME TO, TO LOOK AT, AT DOING SOMETHING DIFFERENT AGAIN.
I, I DID WANT TO COMMENT THOUGH.
I DO APPRECIATE STAFF'S EFFORTS TO MAINTAIN THE, THE, THE CULTURAL PIECES OF KALEIDOSCOPE AND, AND ROLLING THAT INTO, UM, THE ONE COP, WHICH, YOU KNOW, I KNOW SEVERAL OF US HAVE BEEN TO ONE COP, SO THEY'RE DOING A GREAT JOB OF BRINGING PEOPLE TOGETHER.
SO, UM, I DEFINITELY APPRECIATE THE EFFORTS TO TRY TO REIMAGINE WHAT THOSE THINGS CAN LOOK LIKE TO TRY TO BRING A, A FRESH PERSPECTIVE.
SO I WOULD THANK THE DIFFERENT DEPARTMENTS FOR, FOR WORKING TOGETHER ON THAT.
UM, SO LIKE KENT, I WILL BE FOCUSING ON THE PROGRAMS AND SERVICES THAT DRIVE THE FORECASTED EXPENDITURES THAT YOU SEE IN YOUR BOOKS.
UM, I'LL BE COVERING ONE FRONT FACING, UM, COMMUNITY FACING DEPARTMENT, THE COMMUNITY DEVELOPMENT DEPARTMENT, AND I'LL BE HIGHLIGHTING TWO OF THE MAJOR INTERNALLY FOCUSED DEPARTMENTS, SFE AND ENTERPRISE SOLUTIONS.
HAVING SAID THAT, UH, IF YOU HAVE ANY QUESTIONS ABOUT ANY OF THE DEPARTMENTS THAT YOU SEE ON THE SCREEN, PLEASE FEEL FREE TO ASK THOSE.
SO FOR COMMUNITY DEVELOPMENT, THIS IS REALLY WHERE THE RUBBER HITS THE ROAD IN KEEPING COPPEL A COMMUNITY OF CHOICE.
I'M ON THE WRONG ONE, HERE WE GO.
UM, SO THIS IS WHERE THE RUBBER HITS THE ROAD IN TERMS OF KEEPING COPPEL A PLACE THAT WE ALL WANT TO BE.
UM, LIFE IN COPPEL, IT HAPPENS IN OUR NEIGHBORHOODS.
IT HAPPENS WHEN WE'RE OUT AT THE GROCERY STORE, WHEN WE'RE IN OUR BUSINESS AREAS, IN OUR RETAIL AREAS.
UM, THIS TEAM WORKS VERY HARD TO BALANCE THE REGULATORY REQUIREMENTS OF CODE COMPLIANCE, BUILDING INSPECTIONS, ENVIRONMENTAL HEALTH, AND THE PLANNING AND ZONING PROCESS WITH COP HEALTH'S CULTURE, WHICH RECOGNIZES THAT BEHIND EVERY PERMIT, BEHIND EVERY APPLICATION AND BEHIND EVERY INSPECTION IS A HUMAN.
THE COMMUNITY DEVELOPMENT DEPARTMENT FOCUSES ON BEING A GOOD PARTNER WITH THE DEVELOPMENT AND HOMEOWNER DEVELOPMENT COMMUNITY AND OUR HOMEOWNERS TO MAINTAIN SAFETY, ENHANCE THE VISUAL LOOK OF COPPELS NEIGHBORHOODS AND COMMERCIAL AREAS, AND BRING RETAIL AND RESTAURANT OPTIONS TO OUR COMMUNITY, WHICH WAS THE HIGHEST RATED QUALITY OF LIVE PRIORITY IDENTIFIED IN THE 2025 RESIDENT SATISFACTION SURVEY.
THIS SMALL BUT MIGHTY TEAM IS RESPONSIBLE FOR IMPLEMENTING A DISPROPORTIONATELY LARGE PERCENTAGE OF OUR ANNUAL VISION 2040 STRATEGIC PLAN, AND THEY PRIORITIZE THE ANNUAL WORK PLAN TO KEEP PROGRESSING THE COUNCIL VISION FORWARD.
YOU'LL NOTICE THAT THEIR OVERALL FORECASTED EXPENDITURES ARE INCREASED FROM OUR CURRENT YEAR.
AND THIS IS, UM, THE COMMUNITY DEVELOPMENT STAFF UTILIZED THE LEVERAGING TECHNOLOGY TO HANDLE ROUTINE TASK STRATEGY TO LAUNCH CITY DETECT, WHICH IS A SOFTWARE THAT WILL SERVE AS A CODE COMPLIANCE FORCE MULTIPLIER FOR US.
THE EXPENDITURES ALSO SUPPORT COPPEL BUSINESSES THROUGH A BUYING COPPEL, UH, GIFT CARD PROGRAM SUPPORTS COPPEL PRIORITIES THROUGH THE FISCAL YEAR 27 WORK PLAN, WHICH FOCUSES ON DAYTIME ACTIVATION OF OLD TOWN NEIGHBORHOOD ENGAGEMENT AND EMPHASIZES COMMUNITY EDUCATION.
SO I WILL SHARE THAT ALMOST ALL OF THAT A HUNDRED ISH THOUSAND DOLLARS, UM, INCREASE.
UM, MOST OF THAT IS AROUND SALARIES.
AND SO THIS DEPARTMENT HAS WORKED VERY HARD TO BRING IN AS FLAT OF OPERATIONS
[00:45:01]
BUDGET AS THEY COULD.THE ONE CAPITAL INVESTMENT ITEM I'D LIKE TO HIGHLIGHT FOR YOU THIS EVENING IS A NEW PROGRAM THAT WE'RE GONNA TRY THIS UPCOMING YEAR, AND IT'S A NEIGHBORHOOD BEAUTIFICATION TREE PLANTING PILOT PROGRAM.
WE NEED TO COME UP WITH AN ACRONYM THAT'S A LOT.
UM, BUT THIS PILOT PROGRAM WILL FOCUS ON REPLANTING THE RESIDENTIAL TREE CANOPY WITHIN COPPEL.
SO MANY OF THE TREES THAT WE SEE IN OUR OLDER NEIGHBORHOODS WERE BUILT WERE PLANTED WHEN THOSE HOMES WERE BUILT 30 PLUS YEARS AGO.
UM, MANY OF THOSE TREES HAVE DIED AND THAT HOMEOWNERS HAD TO CUT THAT TREE DOWN.
THERE ARE MANY HOMES WHO HAD BEAUTIFUL TREES IN THEIR FRONT YARD AND THE STORM TOOK THOSE OUT.
AND SO THIS PROGRAM WILL, UM, AIM TO HELP HOMEOWNERS, UH, REPLACE SOME OF THOSE TREES THAT ARE IN OUR NEIGHBORHOODS.
SO, STRATEGIC FINANCIAL ENGAGEMENT.
THIS TEAM CONSISTING OF ACCOUNTING, PROCUREMENT, BUDGET, ACCOUNTS PAYABLE AND UTILITY BILLING, WHICH WOWED THE, UM, SURVEY CONSULTANT WITH 91% SATISFACTION RATING DURING THE MOST RECENT SURVEY.
UH, THESE ARE THE STEWARDS BEHIND EVERY DOLLAR THAT'S RECEIVED AND EXPENDED IN SERVICE TO THIS COMMUNITY.
THESE PROFESSIONALS, UH, FOCUS ON FINDING CREATIVE SOLUTIONS TO SUPPORT THE NEEDS OF THEIR CUSTOMERS.
THE WORK OF SFE IS LARGELY DRIVEN BY THE WORK OF OTHERS, AND THEY STRIVE TO SUPPORT THOSE TEAMS BY ADAPTING AND ADJUSTING HOW THEY SERVE IN ORDER TO MEET THE CHANGING NEEDS OF THE FRONTLINE DEPARTMENTS.
SO BY EDUCATING AND ENGAGING WITH THEIR CUSTOMERS, THE SFE TEAM ARE EXTREMELY EFFECTIVE PARTNERS TO CREATE POSITIVE OUTCOMES IN THE COMMUNITY WORKING THROUGH THOSE FRONT FACING DEPARTMENTS THEY SERVE.
SO YOU'LL NOTICE THERE'S AN OVERALL FORECASTED, UM, EXPENDITURE INCREASE FROM THE CURRENT YEAR.
UM, THE TEAM PRIMARILY LEVERAGED THREE STRATEGIES, THOUGHTFULLY STOPPING ACTIVITIES, RETHINKING VENDOR RELATIONSHIPS, AND LEVERAGING TECHNOLOGY TO HANDLE ROUTINE TASKS TO DEVELOP THAT FORECASTED EXPENDITURE.
SO FIRST, STAFF REEVALUATED HOW WE HAD BEEN ACCOUNTING AND PRESENTING THE PROCUREMENT FUNCTION, UM, AS A STANDALONE SERVICE AND DIVISION IN THE ANNUAL BUDGET.
SO WE ARE GONNA STOP DOING THAT.
AND SO YOU WILL NOTICE PROCUREMENT SERVICES IS SHOWING ZERO FOR NEXT YEAR, AND SFE IS SHOWING AN EQUIVALENT INCREASE TO ABSORB ALL OF THE COST FOR THE PROCUREMENT DIVISION.
THE SECOND THING THAT WE DID WAS THE STAFF UTILIZED A THIRD PARTY INVESTMENT FIRM FOR 190,000 TO ASSIST IN MANAGING THE CITY'S INVESTMENT PORTFOLIO.
THIS STRATEGIC IN, OH, I'M SO SORRY, IT IS 90,000, 90,000 TYPO.
WHICH ONE IS IT? WHICH ONE IS 90,000? IT IS THE, UM, THIRD PARTY INVESTMENT FIRM THAT ASSISTED US IN MANAGING THE CITY'S INVESTMENT PORTFOLIO.
SO THIS STRATEGIC INVESTMENT, WHICH IS NOT NEW FOR FISCAL YEAR 27, BUT WAS APPROVED LAST SUMMER, AND THEREFORE NOT REPRESENTED IN THE FISCAL YEAR 26 ADOPTED BUDGET AMOUNT.
SO IT WILL LOOK LIKE AN INCREASE, EVEN THOUGH IT WAS COVERED AT THE YEAR END.
IT ALLOWS STAFF TO LEVERAGE THE EXPERTISE AND CAPACITY OF HILLTOP TO FREE UP OUR SFE TEAM TO FOCUS ON HIGHER VALUE TASKS.
AND WE'VE ALREADY, WE'VE ALREADY REALIZED, UM, SOME OF THE BENEFITS OF THAT CONTRACT ALREADY.
AND SO THAT TEAM HAS 30 ISH PROFESSIONALS WHO ARE MONITORING THE MARKET 24 7 AND MAKING RECOMMENDATIONS TO OUR TEAM AROUND, UH, STRATEGIC INVESTMENTS FOR OUR PORTFOLIO TO MAXIMIZE THE AMOUNT OF INTEREST THAT WE, UM, WE ARE EARNING ON ALL OF THE MONEY THAT IS IN THE FUND BALANCE.
AND FINALLY, THE FORECASTED EXPENDITURES INCLUDE THE EXPLORATION OF AP AUTOMATION SOFTWARE THAT'S BUDGETED AT 125,000.
AND IT WILL AUTOMATE KEY ORGANIZATION-WIDE FUNCTIONS, THE ACCOUNTS PAYABLE PROCESSING, AND OUR P CARD PURCHASE CARD TRANSACTIONS.
SO EVERY DEPARTMENT, UM, ALL OF THOSE, UM, DEPARTMENTS COMPLETE THOSE TYPES OF TRANSACTIONS.
THEY ALL ULTIMATELY END UP WITH THE SFE TEAM.
AND SO IT, THOSE EFFICIENCIES FROM THAT SOFTWARE WILL HELP THE SFE TEAM, BUT IT WILL INCLUDE EFFICIENCIES ACROSS THE ORGANIZATION BECAUSE EVERY DEPARTMENT HAS ADMINS WHO ARE DEALING AND SPENDING TIME WITH BOTH OF THOSE FUNCTIONS.
UM, AND SO THAT WILL HELP US FROM A RESILIENCY STANDPOINT AS WE CONTINUE MOVING FORWARD.
TO ADDRESS THE AUSTIN GAP, THE FINAL DEPARTMENT I'LL COVER WITH YOU THIS EVENING IS ENTERPRISE SOLUTIONS.
SO THIS TEAM IS LITERALLY THE BACKBONE OF THE ENTIRE CITY, UM, WITHOUT THEIR WORK, THAT'S ALMOST ALWAYS DONE IN THE BACKGROUND.
UM, NONE OF THE OTHER SERVICES KENT AND I HAVE TALKED ABOUT THIS EVENING WOULD BE POSSIBLE.
SO WE ARE, WE'RE LITERALLY IN OUR TECHNOLOGY
[00:50:01]
ERA AND EVERY ONE OF OUR DEPARTMENTS IS LOOKING TO LEVERAGE NEW TECHNOLOGY TO HELP THEM DO THINGS MORE EFFICIENTLY, SMARTER, UM, AND MORE EFFECTIVELY.AND THE HIGHLY SKILLED TEAM THAT WE HAVE IN OUR ES DEPARTMENT, THEY'RE BEHIND EVERY ONE OF THOSE DECISIONS AND THEY MAKE THOSE DECISIONS POSSIBLE FOR US.
UM, THEY HAD THE MINDSET AS THEY WERE THINKING THROUGH THEIR FORECASTED EXPENDITURES.
UM, THEY USED THE MINDSET OF CONSOLIDATION AND STREAMLINING SERVICES TO MODERNIZE THE CITY'S TECHNOLOGY TO REDUCE THE COST OF SERVICE AND ENABLE THE FRONT FACING DEPARTMENTS TO MEET THE CHANGING NEEDS OF THE COMMUNITY.
SO YOU'LL NOTICE THEY ARE DOWN HERE AT THE BOTTOM.
THEIR OVERALL FORECASTED EXPENDITURES DECREASED FROM THE CURRENT YEAR.
AND SO IF YOU HAVE EXPERIENCED ANY OF THE INFLATION AROUND, UM, IT EQUIPMENT, UM, THE FACT THAT THIS TEAM IS BRINGING A REDUCTION IN THEIR BUDGET IS REMARKABLE.
UH, THEY HAVE BEEN A LEADER IN USING MANY OF THE STRATEGIES TO CONTROL THEIR EXPENDITURES, REORGANIZING ROLES, THOUGHTFULLY STOPPING ACTIVITIES, AND RETHINKING VENDOR RELATIONSHIPS WERE UTILIZED TO ACHIEVE THESE SAVINGS FOR NEXT YEAR, THEIR WORK TO BRING THE SERVICE DESK IN-HOUSE APPROVAL OF A NEW PARTNERSHIP WITH US DOWN FOR CITY CITYWIDE FIBER.
SO Y'ALL RECALL THAT CONTRACT THAT CAME TO YOU, UM, EARLIER THIS YEAR AND THE TRANSITION TO TEAMS PHONES HAVE RESULTED IN SIGNIFICANT SAVINGS.
ADDITIONALLY, THIS REDUCTION IS ALSO A FUNCTION OF A SOFTWARE CONVERSION PROJECT THAT WAS, UM, FOR THE COMMUNITY DEVELOPMENT DEPARTMENT THAT WAS COMPLETED THIS YEAR THAT WILL MOVE INTO MAINTENANCE MODE NEXT YEAR.
I DO WANNA HIGHLIGHT SOME CAPITAL INVESTMENT ITEMS HERE.
UM, THESE ARE NOT HORRIBLY EXCITING.
YES, SIR? JIM HAD A QUESTION A COUPLE OF MINUTES AGO AND I WAS WAITING FOR A BREAK, SO.
UM, SO ON THE, THE FUND INVESTMENT YES.
THAT WE'RE MOVING TO HILLTOP, ARE THOSE BOND FUNDS EMPLOYEE PENSION FUNDS? WHAT, WHAT, WHAT ARE THE FUNDS THAT ARE BEING INVESTED? SO THE FUNDS, IT IS JUST FUND BALANCE OF THE GENERAL FUND, ALL THE, THE EXCESS BASICALLY ARE BANK ACCOUNT.
WE'RE JUST PUTTING IT INTO DIFFERENT TREASURIES.
SO THE 'CAUSE IT'S SAFETY, LIQUIDITY AND YIELD.
SO THE SAFEST, SAFEST WE KNOW IS FEDERALLY BACKED SECURITIES, UHHUH
I'M NOT A BIG BELIEVER IN T-BILLS.
BUT ANYWAY, UH, SO OKAY, ARE WE PAYING THEM BASED ON THE SIZE OF THE BALANCE ON THE TRANSACTIONAL FEE BASED ON TRANSACTIONS OR IT'S SIZE OF OUR PORTFOLIO AND IT'S A TIERED STRUCTURE BASED ON THE LARGER YOU ARE, THE SMALLER THE FEE GETS.
IT'LL BE TO SEE THE RETURNS WE GET, BUT YEAH, THEY'RE, THEY'RE CERTAINLY TOP RATE AND I, AND I, I DO AGREE WITH LETTING A FIRM LIKE HILLTOP DO THAT AND NOT PUTTING THAT BURDEN ON, ON, ON STAFF.
I THINK THAT, I THINK THAT'S WISE.
I THINK, WELL, I KNOW, BUT THAT'S AN AWFUL BIG YOKE TO CARRY.
SO I THINK THAT'S WISE THAT WE'RE GOING OUTSIDE AND, AND, AND AT LEAST HAVING THAT ASSURANCE AS WELL.
IF ANYONE, I MEAN, IF THE TBI MARKET CRATERED TOMORROW, FOR EXAMPLE, WE'D BE ABLE TO SAY, WELL, HILLTOP PUT US INTO IT.
SO I I THINK THAT WOULD, THAT WOULD PROBABLY BE BETTER FOR ALL OF US.
I HOPE THEY, YOU KNOW, I DON'T KNOW.
MAYOR, CAN I ASK ONE THING? MAYOR, CAN I ASK ONE THING? MAYOR? SIR, CAN I ASK ONE THING? YOU MAY.
UM, I MISSED THE COMBINED SERVICES THAT WE HAVE NOT GOTTEN THERE YET.
ARE YOU GOING TO BE COVERING THE MAYOR AND COUNCIL? YES.
UM, SO YES, THE LAST THING I WILL COVER WITH YOU IS THE, UM, CAPITAL INVESTMENT HIGHLIGHT, WHICH IS, AGAIN, NOT HORRIBLY EXCITING, BUT IT DOES REPRESENT, UH, A SIGNIFICANT PROTECTION OF OUR CURRENT EXISTING INFRASTRUCTURE.
SO WE ARE GOING TO BE REPLACING OUR UPS, UM, DEVICES, WHICH IS ESSENTIALLY ALLOWING ALL OF OUR, UM, SERVERS TO BE MUCH BETTER PROTECTED IN THE EVENT OF, UM, A POWER INTERRUPTION.
THE ES TEAM ALSO SUPPORTS THE, UM, TECHNOLOGY THAT THE OTHER DEPARTMENTS ARE PURCHASING FOR THIS UPCOMING YEAR.
AND SO THEY ARE SUPPORTING ITEMS SUCH AS SECURITY CAMERAS AND THE PUBLIC SAFETY RADIOS.
ANY OF THE SOFTWARE THAT WE'VE, WE'VE TALKED ABOUT, THE ES TEAM HAS BEEN BEHIND ALL OF THOSE.
UM, AND WE'LL BE SUPPORTING ALL OF THOSE AS WELL.
THAT CONCLUDES MY PRESENTATION AT THIS POINT.
I'M GONNA HAND IT OFF TO KIM, UNLESS YOU ALL HAVE ANY OTHER QUESTIONS ABOUT, OH, I'M SORRY.
SO THIS, THIS BAR HERE, UM, SO OUR COMBINED SERVICES, THIS IS
[00:55:01]
THE AREA OF THE, UM, FOR ALL OF OUR EX FORECASTED EXPENDITURES, UM, THAT HOUSE MOST OF OUR ORGANIZATION WIDE AND ENTERPRISE WIDE COSTS, SO UTILITIES, THAT SORT OF THING.THIS IS ALSO WHERE WE WILL, UH, YOU WILL FIND THE TRANSFERS.
SO, UM, THIS, THE LINE ITEM AND THE EXPENDITURES.
SO YOU SEE THE EXPENDITURES ARE SIGNIFICANTLY MORE THAN WHAT WE HAD, UM, INCLUDED IN CURRENT YEAR BUDGET.
AND THAT REPRESENTS BOTH OF THE TRANSFERS.
ONE FOR THE, UM, PUBLIC SAFETY EQUIPMENT REPLACEMENT AND ALSO FOR THE TRANSFER TO THE IMF.
SO THAT IS WHY THAT BAR LOOKS, UM, MUCH LARGER THAN OUR CURRENT YEAR BUDGET.
UH, SO HAVING SAID THAT, THEN, HOW DOES THAT LOOK NEXT YEAR WHEN THE, WHEN THE ALMOST $6 MILLION IN ONE TIME TRANSFER ISN'T MADE, DOES IT REVERT BACK TO SOMEWHERE AROUND THE 8, 6 8 8 NUMBER THAT WE HAD FOR THE CURRENT BUDGET? NO.
UM, SO THE, THE FISCAL YEAR 26, THAT 8.6 INCLUDES THE $5 MILLION THAT WE TRANSFERRED TO, TO DUD IN THIS CURRENT YEAR.
AND IT ALSO INCLUDES, UM, IT'S 5.5 TO DUD AND 2.2 AND, UM, 2040 INITIATIVES SO THAT THOSE WERE USES OF FUND BALANCE.
SO I'LL, I'LL SHOW YOU A LITTLE BIT MORE IN A FEW MINUTES.
THAT KIND OF SHOW YOU THOSE ONE TIME USES AND THAT'S WHERE WE RECORD THEM.
SO THAT IS WHERE YOU'RE GONNA SEE, ANYTIME YOU USE FUND BALANCE, THAT IS WHERE YOU'RE GONNA SEE IT.
WE WANT IT TO LOCALIZE IT IN ONE PLACE.
SO THAT YOU CAN SEE HOW, OKAY, GOT IT.
SO ALL OF THE 11 MILLION IN TRANSFERS OR WHATEVER FOR THIS PROPOSED YEAR ARE ALL IN THAT NUMBER, RIGHT? ALSO.
SO KENT AND TRACY HAVE SHARED WITH YOU THE DEPARTMENT'S STORIES.
UH, AND THIS SLIDE REALLY SHOWS YOU THE TOTAL FISCAL YEAR 27 FORECASTED EXPENDITURES FOR THE GENERAL FUND COMPARED TO THE, UH, FISCAL YEAR 26 ADOPTED.
THE TOP LINE IS SHOWING YOU TOTAL EXPENDITURES, WHICH INCLUDES BOTH OPERATING EXPENDITURES AND THOSE ONE-TIME USES OF FUND BALANCE.
AND THEN THE NEXT SECTION IS WHAT WE'VE BEEN DISCUSSING THAT'S SHOWING UP IN COMBINED SERVICES.
SO IT IS THOSE ONE TIME USES OF FUND BALANCE.
AND SO YOU CAN SEE THE 2040 INITIATIVE AND THE DRAINAGE, THE TRANSFER TO THE DRAINAGE FUND THAT WAS DONE LAST YEAR.
UH, AND THEN FOR THIS YEAR, WE ARE, UM, WE ARE RECOMMENDING IN OUR FORECAST, AS TRACY MENTIONED, THE $5 MILLION FOR THE INFRASTRUCTURE MAINTENANCE FUND.
UM, THERE'S ABOUT 265,000 FOR SOME, UH, ONE TIME, UM, USES FOR THE 2040 WORK PLAN.
UH, AND THEN WE HAVE, UM, THE PUBLIC SAFETY REPLACEMENT AND THEN WE ARE ALSO RECOMMENDING OUR CAPITAL REPLACEMENT.
UM, WHEN WE FULLY FUNDED THAT, THAT WAS MORE FOR THE VEHICLES.
UM, WHAT WE'RE, WHAT WE'RE NOTICING IS THE COST OF SMALLER EQUIPMENT IS STARTING TO INCREASE AND GET INTO THAT OVER 10 TO $15,000 RANGE.
SO THAT IS WHAT THAT 515,000 IS RELATED TO SOME SMALL, SMALLER EQUIPMENT THAT WE WOULD LIKE TO FUND OVER THE NEXT FIVE YEARS.
IT'S, YOU'RE FULLY FUNDING IT, WE PAY FOR IT OUT OF THERE, BUT IN THE GENERAL FUND, YOU SEE ONE YEAR OF USEFUL LIFE.
SO AT THE END OF IT, WHEN IT'S TIME TO REPLACE IT, AGAIN, THE MONEY IS IN THE CAPITAL REPLACEMENT FUND.
KEVIN, SO QUICK, WHAT, WHAT WOULD BE AN EXAMPLE OF A SMALL EQUIPMENT? UH, YOU OBVIOUSLY NOT A VEHICLE.
WHAT WOULD THAT BE? UM, ONE OF THEM WAS, THERE WAS JUST A SPECIAL TRAILER THAT THEY HAD THAT USED TO BE 8,000, BUT THEN 15 YEARS LATER, NOW IT'S 15,000 GOT.
AND NOW IT COST THAT THRESHOLD FOR US TO ADD IT.
UM, KIM, CAN YOU EXPLAIN A LITTLE MORE ON THE PUBLIC SAFETY REPLACEMENT FUND TRANSFER THAT 4.9 MILLION? UH, WHAT, WHAT DOES IT INCLUDE, VANESSA? UM, THAT'S GOING TO INCLUDE, I BELIEVE KENT SAID THERE WAS SOME RADIOS.
THERE'S A ED EQUIPMENT, IT'S WHAT USED TO BE PACKAGES THAT WE WOULD SEE COME THROUGH AS REQUESTS FOR FIRE.
UM, WHAT ELSE? I THINK THERE'S SOME LIKE EQUIPMENT ON SOME VEHICLE THAT NEED TO BE REPLACED.
UM, CARDIAC, IT'S THE NOX KEYS AS WELL.
UM, I DON'T HAVE THAT LIST AND IT'S JUST A BUNCH OF LIKE SMALLER EQUIPMENT THAT ARE LARGE PURCHASE PRICES THAT WE PUT IN THERE.
[01:00:01]
YES.OH, AND SHE JUST SAID SHE WASN'T.
SO DID THE, DID THE BODY CAMS FIT INTO THAT CATEGORY? THAT WAS, THAT, THAT'S THROUGH CCPD.
SO THIS IS SHOWING YOU TOTAL EXPENDITURES LESS THOSE ONE TIME USES TO COME DOWN TO OPERATING EXPENDITURES.
RIGHT? SO THAT IS WHERE THE, THE OPERATING REVENUES THAT WE'RE FORECASTING, UM, SUPPORT THE OPERATING EXPENDITURES OF THE GENERAL FUND.
UH, THIS SLIDE IS ALSO SHOWING YOU, AS I MENTIONED, UM, IN THE INTRODUCTION, THAT THE INCREASE IN THE OPERATING EXPENDITURES FROM THE FISCAL YEAR 26 ADOPTED TO WHAT WE ARE SHOWING IN THE FORECASTED EXPENDITURES IS A 3.33%, WHICH IS LESS THAN THE, UM, INFLATION RATE OF 4.2 WHEN YOU LOOK AT, UH, MAY 25 TO MAY 26.
SO DO YOU HAVE ANY MORE QUESTIONS ON THIS? BECAUSE IF YOU DON'T, I'M GONNA TURN IT OVER AND YOU GET TO WORK ON YOUR BUDGET WITH TRACY.
SO THIS TURE AND THE BUDGET IS ANOTHER ASSUMPTION OF INCREASING THE BUDGET WITH 3.499 INCREASE.
UM, SO WHEN I TALKED TO YOU ABOUT REVENUES, THE REVENUE, THE PROPERTY TAX REVENUE IS BASED ON INCREASING PROPERTY TAX REVENUE, 3.499%.
WHAT IS THAT AMOUNT? UM, I CAN TELL YOU, UH, I WAS GONNA COVER THAT WHEN WE TALKED ABOUT REVENUES, BUT I'LL SHARE WITH YOU NOW.
KEVIN, I, I HATE TO DO THIS, BUT I REALIZE IF I LEAVE, I'M GONNA BREAK QUORUM.
CAN WE HAVE A VERY SMALL RECESS BEFORE WE MOVE INTO OUR BUDGET? UH, YES.
I APOLOGIZE FOR EVERYONE, BUT I DON'T WANNA BREAK QUORUM WITHOUT DOING IT OFFICIAL.
YOU, WERE YOU GONNA MOVE INTO THE COUNCIL BUDGET NOW? YEAH, I, THAT CONCLUDES MY PRESENTATION OF THIS, UNLESS YOU HAD OTHER QUESTIONS AND I WAS WAS GONNA TURN IT OVER TO TRACY.
WE CAN TAKE A FIVE MINUTE RECESS.
WE DON'T EVEN NEED THAT PHONE.
NOT WORK SESSION COUNSEL MEETING.
UH, TRACY IS THIS, UH, WHAT I'D LIKE
[4. 2026-0289 Presentation and discussion regarding the General Fund: A. Expenditure Forecast B. Capital Outlay C. Mayor and Council Initiatives D. Revenue Forecast]
TO COVER WITH YOU NOW IS, UM, THE COUNCIL BUDGET.SO AS ELECTED OFFICIALS, THE COUNCIL, YOU AS THE COUNCIL, Y'ALL REPRESENT THE COMMUNITY'S INTEREST.
YOU DO THIS THROUGH CONSTITUENT SERVICE, THE DEVELOPMENT OF THE BUDGET, AND THROUGH YOUR RELATIONSHIPS WITH LOCAL, REGIONAL, AND STATE PARTNERS.
THE INITIATIVES LISTED HERE SUPPORT YOUR SERVICE TO THE COMMUNITY, WHETHER THAT'S LEGISLATIVE TRAVEL, SUPPORT OF OUR LOCAL NONPROFITS THAT SERVE THE COMMUNITY OR EQUIPMENT THAT'S NECESSARY FOR YOU TO CONDUCT CITY BUSINESS.
YOU'LL NOTICE THAT THE OVERALL FORECASTED EXPENDITURES INCREASED FROM THE CURRENT YEAR AND FISCAL YEAR 27.
THE INCREASE YOU SEE IS DRIVEN BY TWO MAIN FACTORS, UH, ONE THAT WE DO NOT CONTROL.
SO THE LEGISLATIVE SESSION AND ONE THAT WE DO THE FUNDING FOR OUR LOCAL NONPROFITS.
THE LEGIS LEGISLATIVE TRAVEL BUDGET, WHICH IS HIGHLIGHTED IN THE YELLOW, HAS BEEN INCREASED FROM THE CURRENT YEAR OF ZERO, UM, TO, IN ANTICIPATED IN, IN ANTICIPATION OF THE 2027 LEGISLATIVE SESSION, COPPEL WILL BE ACTIVE SUPPORTING ISSUES RELATED TO SALES TAX SOURCING, EXTENDING THE TIME PERIOD FOR STREET MAINTENANCE, SALES TAX, AND SUPPORTING THE OLD TOWN SPECIAL DISTRICT LEGISLATION.
LAST WEEK, THE COUNCIL HEARD FROM OUR SERVICE ORGANIZATIONS, WHICH IS FUNDED IN YOUR SPECIAL PROJECTS LINE ITEM, WHICH IS THE BOTTOM HIGHLIGHT.
THESE REQUESTS ARE HIGHER THAN OUR CURRENT YEAR, MOSTLY DRIVEN BY THE TRANSITION OF THE COMMUNITY GARDENS AND THE FARMER'S MARKET THAT KENT TALKED ABOUT EARLIER.
YOU SAW THE CORRESPONDING REDUCTION IN THE COMMUNITY EXPERIENCES, OPERATIONS, BUDGET, THESE GROUPS, ALL OF THESE GROUPS, UH, REPRESENT MORE THAN A NUMBER ON A SPREADSHEET.
THE VALUE ON INVESTMENT IS TREMENDOUS.
THE VOLUNTEERS WHOSE PASSION FOR THEIR SPECIFIC SERVICES PROVIDE VALUABLE SERVICE TO OUR COMMUNITY, THEIR LONG HISTORIES.
AND WE HEARD, UH, A LOT A NUMBER OF THOSE ORGANIZATIONS WHO HAVE BEEN HERE 20 AND 30 YEARS, THEIR LONG HISTORIES SPEAK TO THE DEDICATION, UM, THESE VOLUNTEERS HAVE AND THE SUPPORT THEY RECEIVE, BOTH FROM YOU AS THE CITY COUNCIL AND THE COMMUNITIES THEY SERVE WHO KEEP SHOWING UP YEAR AFTER YEAR AFTER YEAR TO SUPPORT THEM.
WE COULD NOT REPLACE THE HOURS AND SERVICES THESE COMMUNITY VOLUNTEERS GIVE TO COPPEL IN A MORE EFFICIENT MANNER.
[01:05:01]
WITH THAT, I'LL BE HAPPY TO ANSWER ANY QUESTIONS THAT YOU ALL MIGHT HAVE RELATED TO YOUR OWN BUDGET.A QUESTION FOR YOU, UH, TRACY IS, SURE.
I'M LOOKING AT PAGE SIX OF THE BREAKDOWN OF ALL THE MAYOR AND COUNCIL ITEMS, AND I NOTICED THAT THE COUPLE FARMERS MARKET AND THE COMMUNITY GARDEN, IT'S ADDED TO FROM THE COMMUNITY EXPERIENCE BUDGET TO THE MAYORS AND COUNCIL BUDGET? THAT'S CORRECT.
I ALSO SEE WHERE DO YOU INCLUDE THE DISCOVER COPPEL? THAT IS IN THE HOTEL OCCUPANCY.
AND ARE THERE ANY OTHERS ARE INCLUDED IN THOSE TYPE OF, UH, IN THE HOT? YES.
ARE YOU, ARE, ARE YOU RE REFERENCING SERVICE ORGANIZATIONS? YES.
SO THERE ARE, SO THERE IS THE, UM, I'VE GOT THIS SHEET RIGHT HERE.
SO CAN I MAKE ONE, JUST ONE COMMENT? SURE.
SO, UM, COUNCIL MEMBER MATTHEWS, THE DISCOVER COPPEL IS NOT LISTED AS A SERVICE ORDER BECAUSE THAT WAS A PRESENTATION TO COUNCIL AND WE, UM, INCLUDED THAT IN THE HOTEL OCCUPANCY BUDGET AFTER HER PRESENTATION BECAUSE I BELIEVE THAT WAS THE DIRECTION THAT WE WERE GOING TO FUND THAT.
SO IT'S A COUNCIL APPROVED THAT, OR IT JUST A RECOMMENDATION FROM THE STAFF? IT, IT WAS A PRESENTATION THAT SHE MADE ASKING FOR THAT AMOUNT OF MONEY.
AND MY UNDERSTANDING WAS THAT THE DIRECTION WAS TO BUILD IT INTO THE, THE FORECAST.
SO WE DIDN'T APPROVE ANYTHING.
UH, SHE ASKED FOR MONEY FOR A FISCAL YEAR 27.
IT WAS LIKE A THUMBS UP THING.
BUT WHEN WE, IF WE CHOOSE TO APPROVE THAT AMOUNT, WE DO THAT WITH THIS BUDGET THAT'S BEING PRESENTED TO US FOR 26 27.
AND WHAT LINE IS IT FALLING UNDER? I MEAN, OF ALL THE THINGS PRESENTED TODAY, WHERE IS IT ROLLED INTO? IT WAS, IT WAS JUST, IT WAS, WOULD'VE BEEN AT THE, UM, LAST MEETING LAST WEEK.
IT WAS PART OF THE HOTEL OCCUPANCY TAX.
I LOOKED AT, I COULDN'T FIND THE CRDC AND IT'S IN, IT'S IN BOX PAGE ONE.
IT'S IN THE HOTEL OCCUPANCY PAGE.
CRDC IS WHAT, WHAT IS THE PAGE NUMBER? PAGE ONE, THE LAST SESSION.
I'M THE 2D SPECIAL REVENUE FUND.
SO THE CH THE AMOUNT IN THE SERVICE ORGS FOR THE CHAMBER THAT YOU SEE IN YOUR BUDGET IS RELATED TO THEIR NORMAL REQUEST THAT THEY A, THAT THEY SUBMIT A GRANT FOR.
SO BECAUSE THERE'S AN AMOUNT HERE FROM CORPORATE CHAMBER FOR 67,000, THAT'S THEIR NORMAL GRANT REQUESTS THAT THEY DO EVERY YEAR.
AND WHAT WAS A THOUSAND? IT WAS 288.
UM, JESSICA, CAN YOU TELL ME THE EXACT AMOUNT? IT WAS 2 88, UM, 6 44 OR 4 64.
AND THAT WAS THE, UH, AMOUNT THAT SHE PRESENTED TO COUNSEL DURING A WORK SESSION WHEN SHE TALKED ABOUT DISCOVER CAPEL.
AND I DON'T KNOW IF WE HAD A DISCUSSION ABOUT APPROVING, WELL, IT'S NOT BEEN APPROVED YET.
IT'S JUST BEEN SUBMITTED FOR THE BUDGET.
WE WON'T GET AROUND TO THE APPROVAL OF THE ACTUAL BUDGET UNTIL SEPTEMBER OR OCTO, UH, AUGUST OR SEPTEMBER.
YEAH, NO, NO, BUT I'M SAYING LIKE, WE ARE DISCUSSING TODAY D DIFFERENT DEPARTMENTS AND DIFFERENT PROJECTS.
WHEN DO YOU DISCUSS THAT PARTICULAR ITEM? WHEN SHE DID THE PRESENTATION, THE SPECIAL REVENUE FUNDS WERE, WERE PRESENTED TO YOU LAST TUESDAY ON THE 14TH UP HERE.
KENT PRESENTED, UH, THE PRESENTATION ON CRDC.
SO WE TALKED ABOUT, UM, WHAT WAS IN THE C-D-C-R-D-C.
WE TALKED ABOUT THE HOTEL OCCUPANCY TAX OR TAX FUND.
WE TALKED ABOUT ROLLING O OAKS, BUT DID WE SPECIFICALLY SAY THAT $250,000 AMOUNT? I DON'T REMEMBER.
IT WAS NOT, UH, YEAH, I'M NOT SURE.
LAST WEEK WE HAD THE DISCUSSION ON HOT, AND I'M LOOKING AT THE SLIDE, THE CHAMBER DISCOVER AL WAS NOT ALIGNED ITEM
[01:10:01]
IN THAT SLIDE.WHEN DO WE DISCUSS THAT ITEM? WELL, WE'RE, BEFORE WE GET TO THE FINAL BUDGET, YOU CAN TALK ABOUT IT TONIGHT.
ME? I DON'T SEE ANYWHERE ITEM.
I'M DEALING WITH ANOTHER THING.
UM, YOU HAVE AN OPPORTUNITY THIS EVENING, I THINK AT THE END OF THE BUDGET DISCUSSION OR THE FINANCIAL STRATEGY DISCUSSION, IT'S THIS SERVICE.
WHAT IS THE LAST ITEM? THE SERVICE ORGANIZATIONS YEAH.
LAST THAT, THAT'LL BE AN OPPORTUNITY FOR YOU TO TAKE THAT UP.
THAT'S A SERVICE ORGANIZATION REQUEST FROM LAST WEEK.
WELL, AS SHE SAID, THE HOT PRESENTATION, IT WAS IN THE CODE AT LARGER BUDGET OF THE HOT.
BUT I UNDERSTAND THE QUESTION AND YOU HAVE AN OPPORTUNITY TO GET THAT DIRECTION TONIGHT.
JUST LIKE YOU HAVE THE OPPORTUNITY TO WEIGH IN ON WHETHER OR NOT THE CORE CLOSES EARLY.
JUST, I MEAN, THIS IS YOUR TIME, THIS IS YOUR OPPORTUNITY TO TALK ABOUT WHATEVER YOU WANT TO TALK ABOUT RELATED TO THE FINANCIALS OF THE CITY.
THE REASON I BROUGHT IT UP, THAT LINE ITEM, I DON'T SEE ANYWHERE.
IT'S BUILT INTO, UH, THE HOT BUDGET ITSELF.
WE TOOK HER PRESENTATION THAT HAD ACTUALLY, IT WAS HIGHER THAN 250,000.
AND WE DIDN'T, WE DIDN'T DO IT, TREAT IT LIKE THE CHAMBER OF COMMERCE AND ASKING FOR $64,000.
WE TREATED IT AS ADVERTISING, WHICH IS IT PERMITTED AND HOT? IT'S A PERMITTED USE.
WE ARE ACTUALLY CONTRACTING THAT SERVICE FROM THE CHAMBER OF COMMERCE.
SO YOU WOULD NOT HAVE SEEN THE LINE ITEM.
YOU HAD THE PRESENTATION FROM ROBIN SEVERAL MONTHS AGO.
Y'ALL HAD AN OPPORTUNITY TO TALK ABOUT IT.
IT WAS, THAT WAS, THAT WAS HER SUBMISSION OF BEFORE THE COUNCIL.
THIS IS WHAT WE'RE REQUESTING.
YOU WANT TO DO SOMETHING DIFFERENT.
ALL YOU HAVE TO DO IS JUST RAISE YOUR HAND.
COUNSEL, IRA, DID YOU WANT THE, YOU STARTED, UH, YOUR QUESTION WITH WHAT ELSE IS, UM, WHAT OTHER ORGANIZATIONS WERE ASKING FOR HOT FUNDING? DO YOU STILL WANT THAT LISTING? YEAH.
IT'S SO THE BALLET ENSEMBLE OF TEXAS, ACTUALLY, IF YOU GO TO YOUR FOLDER ON PAGE TWO LAST WEEK, PAGE TWO.
I DIDN'T, DO YOU WANNA TAKE A PICTURE? MINE OR I GOT IT RIGHT HERE FOR THAT'S FINE.
I HAVE CONCLUDED MY PRESENTATION.
I WAS JUST HAPPY TO ANSWER ANY QUESTIONS.
SO ANYBODY HAVE ANY QUESTIONS FOR TRACY? I MEAN, YOUR BUDGET, KEEP IN MIND THERE, YOU KNOW, THIS IS THE OPEN FORUM TO DISCUSS ANYTHING BUDGET RELATED THAT COMES BEFORE US.
I THINK OUR, I HAVEN'T LOOKED THIS YEAR, BUT OUR BUDGET TYPICALLY HAS 600 LINE ITEMS TO IT.
SO WE NEED, UM, JUST TO BRING EVERYBODY UP TO DATE, MARK WAS, HILL WAS CALLED AWAY FROM TOWN ON A MEDICAL EMERGENCY.
HE WOULD LIKE TO JOIN IN BY AUDIO.
UH, WE THINK WE CAN GET HIM ON ZOOM, BUT WE HAVE TO RECESS AND RESET THE SYSTEM.
WE'RE GONNA HAVE TO TAKE A RECESS TO LET THEM RESET THE SYSTEM.
SO NO, THERE'LL BE NO DIALING IN WITH, I THINK, IN ALL FAIRNESS TO MARK, HE'S DEALING WITH SOME PERSONAL STUFF.
SO LET'S TAKE A RECESS UNTIL WE CAN GET HIM ZOOMED IN.
THAT WON'T AT LEAST ALLOW FOR A BATHROOM.
ALRIGHT, KIM, IF I'M, UH, COUNTING DOWN THE LIST HERE, WE'RE ON ITEM D, REVENUE FORECAST.
SO I'M GOING TO COVER THE, UH, GENERAL FUND REVENUES.
THIS, UH, THE GENERAL FUND REVENUES BEGIN ON PAGE SEVEN IN YOUR NOTEBOOK.
UH, THIS CHART, UH, THE CHART ON THIS SLIDE CAN BE FOUND AT THE BOTTOM OF PAGE NINE IN YOUR NOTEBOOK.
AND THIS CHART PROVIDES, UH, BASED ON COUNCIL'S POLICY DIRECTION AND STAFF STRATEGIES.
THE TOTAL REVENUES FOR EACH REVENUE CATEGORY ALONG WITH EACH REVENUE, UH,
[01:15:01]
SOURCES PERCENT OF THE TOTAL FORECASTED REVENUES OF THE GENERAL FUND.AND THIS GRAPH SHOWS THE FISCAL YEAR 27 FORECASTED REVENUES TOTAL 78.9 MILLION COMPARED TO THE FISCAL YEAR 26 ADOPTED REVENUES OF 76.3 MILLION.
NOW, PROPERTY TAX, WHICH IS REPRESENTED BY THE BLUE PIECE OF THE PIE, ARE, UM, THEY ARE FORECASTED BASED ON AN INCREASE OF 3.499%, WHICH WAS THE DIRECTION PROVIDED BY COUNCIL AT THE FEBRUARY COUNCIL RETREAT.
PROPERTY TAX DOES REPRESENT 61% OF THE TOTAL REVENUE, SO ARE APPROXIMATELY $48.3 MILLION.
NEXT IS SALES TAX, WHICH IS REPRESENTED BY THE RED PIECE OF THE PIE.
AND IT IS 21% OF TOTAL REVENUES ARE ABOUT 17 MILLION.
WE DO CONTINUE TO BUDGET AS IF THE RULE 3.334 IS IN EFFECT, UH, AS COUNSEL HAS DIRECTED.
AND FOR THIS PRESENTATION, WE INCLUDED A 3% INCREASE OVER THE ADOPTED FISCAL YEAR 26 BUDGET.
SO PROPERTY TAX AND SALES TAX MAKES UP 82% OF THE TOTAL FORECAST REVENUES OF THE GENERAL FUND.
AND THE REMAINING 18% IS FROM CHARGES FOR SERVICES, UH, COURT FINES, LICENSES AND PERMITS, FRANCHISE TA, FRANCHISE FEES, AND THEN MISCELLANEOUS OTHER REVENUE.
AND THAT MISCELLANEOUS OTHER REVENUE INCLUDES INTEREST INCOME.
AND SO FOR INTEREST INCOME, WE ARE UTILIZING A STRATEGY BASED ON THE UNCERTAINTY AROUND INTEREST EARNINGS RESULTING FROM THE CURRENT, UH, ECONOMIC ENVIRONMENT.
AND SO INSTEAD OF TRYING TO PREDICT WHAT WILL HAPPEN WITH INTEREST RATES FOR THIS ANALYSIS, WE'RE HOLDING INTEREST EARNINGS AS THE SAME AT THE SAME LEVEL THAT WAS BUDGETED, UH, IN THE FISCAL YEAR 26 ADOPTED.
SO ALLOWING ANY INTEREST EARNINGS OVER BUDGET TO FLOW THROUGH OR OVER THE FORECAST TO FLOW THROUGH TO THE FUND BALANCE TO BE USED FOR ONE TIME, UH, ITEMS IN FUTURE YEARS.
SO ONE MORE, UM, ONE OF THE OTHER REVENUES THAT'S, UH, CONSIDERED IN, IN THE OTHER CATEGORIES, THAT $250,000 TRANSFER FROM THE ROLLING OAKS MEMORIAL CEMETERY TO THE GENERAL FUND.
AND THE DIRECTION WAS GIVEN, UH, LAST WEEK AT THE FINANCIAL STRATEGY SESSION ONE, TO CONTINUE TO INCLUDE THAT TRANSFER IN THIS BUDGET.
SO I JUST WANTED TO POINT OUT THAT WE DID IMPLEMENT THAT STRATEGY OR THAT DIRECTION, I SHOULD SAY.
SO ARE THERE ANY QUESTIONS REGARDING REVENUES? RAMESH, AND YOU MAY, UM, KIM, UH, I HOPE MY MEMORY IS NOT FAILING ME.
UH, LAST YEAR, I THINK WHEN WE HAD A SIMILAR MEETING, UH, WE WERE GOING TO TALK TO A CONSULTANT ABOUT REVISITING THE FEES THAT WE, UH, BY, WAS IT LAST YEAR OR SOMETIME MIDDLE OF THIS YEAR? IT WAS DURING COUNCIL RETREAT, I THINK.
BECAUSE WE BROUGHT, UM, AND VANESSA IS REALLY LEADING THAT PROJECT AND WE BROUGHT THE CONTRACT TO COUNCIL FOR APPROVAL.
UM, DO YOU HAVE SPECIFIC QUESTION REGARDING THAT OR? SO, UH, I, I GUESS MY SPECIFIC QUESTION IS AGAIN, UM, HIGHER LEVEL, UM, WHAT IS OUR TARGET? ARE WE TRYING TO GET A PERCENTAGE OF THE REVENUE THROUGH INCREASING THE FEES? UM, BECAUSE AT THE END OF THE DAY, THEY ALL ROLL UP TO THE, THE REVENUE NUMBER OR THE OTHER MISCELLANEOUS REVENUE, RIGHT? UM, SO ARE WE TRYING TO HIT A TARGET OR ARE WE JUST SAYING, HERE'S WHAT THE MARKET CAN SUPPORT, THEREFORE LET'S GO AND INCREASE THE PIECE.
SO FROM THIS BUDGET PERSPECTIVE OF 27, IT DOESN'T HAVE ANY INCREASES BASED ON THE STUDY THAT Y'ALL WILL SEE GOING FORWARD.
SO THIS IS JUST BASED ON CURRENT RATES THAT WE HAVE.
BUT THEN THE RATES THAT WE DO SELL WILL JUST BE BASED ON COUNCIL'S DIRECTION ON WHAT YOU, WHAT YOUR PREFERENCE IS FOR.
AND IT'S COMMUNITY EXPERIENCES IS FIRST.
SO THAT PRESENTATION WILL COME TO YOU, I HOPE SOON.
I DIDN'T TALK TO YOU, MIKE, BUT I WILL HAVE TO SET SOMETHING UP TO YOU TO TALK THROUGH THE RESULTS FIRST BEFORE PRESENTING BACK TO COUNCIL.
UM, SO I'M HOPING THAT'LL BE RELATIVELY SOON THAT WE'RE ABLE TO BRING THAT FIRST RECOMMENDATION AND THEN GET COUNCIL DIRECTION ON WHICH FEES TO CHANGE.
AND TO FURTHER THOUGH, WE HAVE NOT SET ANY ARTIFICIAL TARGET.
SO TO ANSWER YOUR QUESTION SPECIFICALLY, THEY'RE LOOKING AT WHAT THE COST OF SERVICES ARE AND ARE WE CHARGING, ARE WE NOT? IF WE ARE CHARGING, ARE WE, UH, DOING A RETURN ON INVESTMENT? ARE WE SUFFERING A LOSS? ARE WE HAVING AN OFFSET? SO THAT'S WHAT THIS CONSULTANT IS LOOKING AT.
THAT'S WHY SHE'S SAYING AT THE END OF THE DAY, IT'S GONNA BE A POLICY DECISION FOR THE COUNCIL TO DETERMINE RUN LIKE A BUSINESS OR PROVIDE THE SERVICES AND BE AS
[01:20:01]
EFFICIENT AND EFFECTIVE AS YOU CAN.AND WE ARE, WE CAN AFFORD TO NOT HAVE SOMEBODY COVER THE FULL COST.
ANYTHING ELSE ON REVENUES BEFORE I CONTINUE ON? OKAY.
SO THE NEXT SLIDE PROVIDES YOU INFORMATION ABOUT, UH, THE FUND, BALANCE OF THE GENERAL FUND.
AND THIS ONE IS AT THE BOTTOM OF PAGE 10 IN YOUR NOTEBOOK.
THIS SLIDE SHOWS THE TOTAL FUND BALANCE IS PROJECTED TO BE 127 MILLION AT SEPTEMBER 30TH, 2027.
THIS IS A DECREASE OF ABOUT 10.7 MILLION FROM THE, UH, PROJECTED SEPTEMBER 30TH, 2026 BUDGETED FUND BALANCE.
AND IT IS RELATED TO THE INTENTIONAL USE OF FUND BALANCE FOR THOSE ITEMS THAT WE'VE MENTIONED.
THE VISION 2040 WORK PLAN ITEMS, THE TRANSFER OF $5 MILLION TO THE IMF FUND, AND THEN ESTABLISHING THAT PUBLIC SAFETY REPLACEMENT FUND ALONG WITH, UM, ADDING THAT SMALL EQUIPMENT TO THE CAPITAL REPLACEMENT FUND.
UM, THESE ARE THE ITEMS THAT ARE LISTED AT THE, UM, BOTTOM OF PAGE TWO, UM, BACK ONE, WHICH IS IN THE EXPENDITURE SECTION.
SO IT'S THE ITEMS THAT MOVE YOU FROM TOTAL EXPENDITURES DOWN TO WHAT ARE OUR OPERATING EXPENDITURES, WHICH IS THE BACK.
I JUST WANNA MAKE SURE THAT WE'RE CONNECTING.
SO IT'S THESE ITEMS, RIGHT? WE TALKED ABOUT THAT.
AND SO I, THIS SLIDE, UM, ALSO SHOWS THE, UM, SO THESE, ALL THIS SLIDE ALSO SHOWS THE, UH, RESULTS OF THE CLASSIFICATION THAT'S INCLUDED IN THE EXCESS REVENUES ALLOCATION GUIDELINES.
UH, WE INCLUDE THOSE GUIDE, WE INCLUDED THOSE GUIDELINES IN THE BACK OF YOUR BINDER.
UH, IT ALSO INCLUDES THE REQUIREMENTS, UM, THAT ARE INCLUDED IN THE FUND BALANCE POLICY.
AND THAT FUND BALANCE POLICY IS ALSO IN THE BACK OF YOUR BINDER.
AND I WANTED TO LET YOU KNOW THAT THIS YEAR'S STAFF IS NOT RECOMMENDING ANY CHANGES TO THE GUIDELINES OR THE FUND BALANCE POLICY.
BUT CAN YOU, KIM, I THINK JIM HAD A QUESTION, MR. JUST A SHORT ONE.
SO ON THIS PARTICULAR CHART IS STRATEGIC RESERVE, THE, THE SALES TAX THAT WE'RE RETAINING THAT WE'RE NOT BUDGETING FOR, AND THE UNASSIGNED IS THE 10% WE SET ASIDE A YEAR UNDER THE CHARTER OR SOMETHING ELSE? UM, NO.
LET ME, LET ME SHARE A LITTLE BIT MORE INFORMATION AND THEN A ANSWER THAT FOR YOU.
UM, AND SO WHAT I WANTED TO SHARE IS THAT THE FUND BALANCE IS REQUIRED TO BE BROKEN OUT INTO THESE CATEGORIES.
UH, THE NONS SPENDABLE AT THE TOP IS THAT 10% CHARTER REQUIRED, AND THEN THE COMMITTED IS THAT 15%, UM, OF EXPENDITURES.
THAT IS THE, UH, COUNCIL POLICY.
AND THEN, UM, WE ALSO, UH, HAVE THE, UM, 50% THAT'S REQUIRED BY FUND BALANCE POLICY THAT, UM, 50% OF THE EXPENDITURES ARE TO BE SHOWN AS, UH, AN UN-DESIGNATED.
SO THE OTHER PIECE THAT I WANTED TO TALK ABOUT WERE THESE ASSIGNED.
AND THE ASSIGNED IS WHERE YOUR, YOUR GUIDELINES COME IN.
SO THE GUIDELINES THAT, UM, AND IT'S IN THE BACK OF YOUR BINDER, THAT GUIDELINES ESTABLISH WHAT WE ARE USING THE ADDITIONAL FUND BALANCE FOR.
AND SO TO ANSWER YOUR QUESTION, IS STRATEGIC RESERVE SIMPLY SALES TAX? AND THE ANSWER IS NO, BECAUSE FUND BALANCE IS ACCUMULATION OVER TIME OF THE DIFFERENCE BETWEEN REVENUES AND EXPENDITURES.
ALL REVENUES AND EXPENDITURES.
SO IF EXPENDITURES COME IN LESS THAN BUDGETED, THAT'S GONNA HAVE A POSITIVE EFFECT ON YOUR PEN FUND BALANCE.
IF OTHER REVENUES COME IN MORE THAN BUDGETED, FOR EXAMPLE, INTEREST, IT'S GOING TO HAVE A POSITIVE IMPACT ON YOUR FUND BALANCE.
IF SOMETHING COMES IN LESS, IF CHARGES FOR SERVICES COME IN LESS THAN BUDGETED, IT'S GOING TO HAVE A REDUCTION IN YOUR FUND BALANCE.
SO IT'S NOT, WE ARE LOOKING AT WHAT WE ARE TRACKING, UM, WHAT DO WE COLLECT IN SALES TAX OVER BUDGET, AND WE ARE ALLOCATING IT TO THAT THE 31 MILLION FOR THE IMF, THE FULLY FUNDING OF THE CAPITAL REPLACEMENT FUND AND THE ENTERPRISE SOLUTIONS REPLACEMENT FUND.
SO WE ARE, BUT TO SIMPLY SAY THAT SOMETHING IS RELATED TO A SPECIFIC REVENUE SOURCE, IT'S ALL, IT'S ALL, WE DON'T, WE DON'T SAY THIS EXPENDITURE IS FUNDED BY THIS REVENUE SOURCE AND THIS EXPENDITURE IS THIS.
WE SAY THESE ARE THE REVENUE SOURCES FOR THE GEN FOR THE GENERAL FUND, AND THESE ARE THE PROGRAMS AND SERVICES THAT WE WANT TO PROVIDE TO THE ORGAN, TO THE, TO THE COMMUNITY.
[01:25:01]
AND THEY ALL COME TOGETHER TO DO THAT.THE STRATEGIC RESERVE IS WHAT WE REALLY NAMED AS WE'VE IDENTIFIED THESE SPECIFICALLY.
AND AS WE IDENTIFY OTHER THINGS, WE MOVE IT FROM STRATEGIC RESERVE SOMEWHERE ELSE, OR WE MOVE IT FROM STRATEGIC RESERVE TO A TRANSFER TO ANOTHER FUND.
AND THE STRATEGIC RESERVE, THE THOUGHT PROCESS BEHIND THAT WAS THIS IS WHAT WE CAN USE TO GET OURSELVES THROUGH THE NEXT FIVE YEAR TRANSITION PERIOD.
SO WE'RE NOT BEING REACTIVE TO CHANGES IN AUSTIN.
WE, WE ARE ABLE TO BE PROACTIVE TO SET OURSELVES UP SO THAT WE CAN MAKE SLOW, THOUGHTFUL DECISIONS ABOUT THE IMPACT THAT WE'RE GONNA HAVE ON THE COMMUNITY AND THE SERVICES AND PROGRAMS THAT WE PROVIDE.
SO WITH RESPECT TO THE, THE, WHETHER IT'S THE STRATEGIC RESERVE OR THE UNASSIGNED UNRESERVED UNDESIGNATED, THEY'RE BOTH AN AMALGAM OF, OF REVENUE SOURCE, RIGHT? CORRECT.
THEY'RE JUST DIFFERENT, THEY'RE JUST CATEGORIZED DIFFERENTLY CORRECT.
WITHIN THE REVENUE PART OF THE BUDGET? YES.
SO DO YOU, SO I GAVE YOU A REALLY LONG-WINDED ANSWER AND I COULD HAVE JUST SAID THAT
I, I TRIED TO AVOID A LONG-WINDED QUESTIONS, SO, BUT NO, THAT'S, THAT'S, THANKS KIM.
I HAD A SESSION WITH THEM YESTERDAY.
AND EXCESS SALES TAX REVENUE FOR 2027 IS ABOUT FROM GENERAL 27 MILLION AFTER WE TRANSFERRED ALL 31 MILLION OR THE 5 MILLION.
SO IT'S GONNA BE LEFT OVER 7 MILLION ON THE GENERAL FUND.
WE GOTTA WIN THAT APPEAL AND GET THAT OVER SO THAT THERE WOULD BE, BECAUSE OF THE TWO, UH, PENNIES, ONE GOES TO GENERAL FUND AND THEN HALF AND 0.5 QUANTIFY.
SO THE 7 MILLION IS THE ONE PENNY? NO, NO, NO.
THE EXCESS FUND WE'VE BEEN COLLECTING SINCE 2001.
THEY'VE BEEN GOING INTO DIFFERENT BUCKETS.
ONE IS GENERAL C IS THE, SO WHAT I WAS SAYING IS AFTER TRANSFERRING ALL THE FUNDS THAT WE DID LAST YEAR, 31 MILLION THIS YEAR CAN REQUESTED 5 MILLION AN ADDITIONAL.
THERE ARE 7 MILLION LEFT IN THE GENERAL FUND IN THE EXCESS MONEY.
UH, I HAD A COUPLE OF QUESTIONS.
UH, DON, THIS IS NOT RELATED, WHAT WE TALKED ABOUT FUTURE ADVANCED TO DUD FOR PROJECTS 12.
I WAS, I WAS JUST GOING TO, I WAS JUST CURIOUS.
WE JUST DON'T GO AHEAD AND MOVE IT TO D YOU PROBABLY HAVE AN ANSWER.
SO, UM, AS WE WENT THROUGH THE DEAD RIGHT STUDY, UM, WE RECOGNIZE THAT THERE ARE SOME FUTURE PROJECTS THAT NEED TO BE DONE.
UM, UH, AND SO YOU'RE GONNA HEAR THAT STUDY, UM, NEXT MONTH.
AND SO THEY'LL PROVIDE YOU SOME MORE INFORMATION.
BUT AS WE WALK THROUGH THAT STUDY, WE WANTED TO PROVIDE COUNSEL WITH SOME, SOME, UM, FLEXIBILITY.
AND SO WHAT WE THOUGHT WE WOULD DO IS WE WOULD PUT IN A, AN ASSIGNED FUND BALANCE OF 12.1 MILLION AND THAT MONEY COULD EITHER BE TRANSFERRED OVER OR YOU COULD DO AN ADVANCE TO THE DRAINAGE UTILITY DISTRICT AND THE DRAINAGE UTILITY DISTRICT COULD PAY THE FUND BALANCE THE GENERAL FUND BACK.
UM, AND THE OTHER ALTERNATIVE IS YOU WOULD ISSUE BONDS.
SO ISSUE BONDS DO IN ADVANCE OR JUST TRANSFER THE MONEY.
WE REALLY PUT THIS HERE TO PROVIDE SOME FLEXIBILITY TO COUNSEL WHEN THE TIME COMES.
AND THAT WAS THE NEW ITEM UP HERE THAT I WANTED TO MAKE SURE WE POINTED OUT UNDER STOLEN RAMESH.
THANKS, MAYOR KIM, FOR THE BENEFIT OF, UH, ANYONE LISTENING IN AT A HIGH LEVEL, UH, CAN YOU RECAP FOR US, UM, OBVIOUSLY THAT $127 MILLION THAT WE HAVE AS, AS THE, UH, UH, FUND BALANCE FOR GENERAL FUND, THAT'S A GOOD SIGN FOR, UH, FOR A HEALTHY, UM, CITY.
AND, AND THEN, UH, ANY OTHER COMMENTS ON, ON, UM, DIRECTIONALLY, IS THAT THE TARGET THAT WE ARE SUPPOSED TO BE HITTING? OR IT COULD BE GOING UP AND DOWN AT 10 MILLION AND, AND THAT'S OKAY.
[01:30:01]
GUESS IT WAS, LET'S JUST FOCUS ON ONE IN PARTICULAR BECAUSE I THINK IT'S INDICATIVE OF THE APPROACH.AT ONE POINT IN TIME, UH, JASON HUGHES MADE A PRESENTATION TO THE COUNCIL AND HE GOT ASKED A QUESTION ABOUT, WELL, WHAT'S A REASONABLE FUND BALANCE? AND HE SAID, WELL, I DON'T KNOW, ABOUT 35, 30 7% OR SOMETHING ALONG THOSE LINES.
AND IT TURNED OUT TO BE AROUND $30 MILLION.
AND ALL OF A SUDDEN THAT BECAME THIS NUMBER THAT WE AS A COUNCIL AND YOU AS A COUNCIL AND WE'RE GOING FORWARD WITH.
AND SO AS EACH YEAR CAME UP AND WE WERE DOING A BOND ISSUANCE, UH, THE CITY HAS ALWAYS BEEN IN A REALLY STRONG POSITION, AAA RATED BY BOTH THE AGENCIES AND EVERYTHING ALONG THOSE LINES.
AND LAST YEAR Y'ALL HAD A DISCUSSION AND, YOU KNOW, YOU TALKED ABOUT THIS AND YOU JUST, AS, I'M GONNA USE THE WORD ARBITRARILY, SET A NEW STANDARD THAT WE ARE GOING TO HAVE UNRESERVED UNDESIGNATED AT 50% OF OUR TOTAL EXPENDITURES.
AND SO THIS WHOLE NUMBER, UH, AS FAR AS THE BUDGETED ENDING FUND BALANCE IS REALLY DRIVEN BY, AGAIN, YOUR PHILOSOPHY OF WHAT IT IS THAT YOU WANT US TO BE ACCOMPLISHING.
BECAUSE ON TOP OF THAT, YOU HAVE THE 10% BY CHARTER AND THE 15% BY POLICY.
SO IN ESSENCE, YOU HAVE 75% OF OUR TOTAL EXPENDITURES DESIGNATED FOR SOME SPECIFIC PURPOSE OF THAT.
ONLY 10% OF IT IS NOT TO BE SPENT UNLESS YOU AS A COUNSEL DECIDE TO DO THAT.
SO IS IT STRONG? IT'S EXTREMELY HEALTHY, RIGHT? UH, SECONDLY, IT PROVIDES YOU TREMENDOUS FLEXIBILITY JUST AS WHAT SHE WAS TALKING ABOUT EARLIER.
AND THAT FLEXIBILITY IS GOING TO COME INTO PLAY MORE AND MORE AS THE STATE LEGISLATURE CONTINUES TO RATCHET DOWN ON MUNICIPALITIES.
SO YOU AS A COUNCIL ARE IN VERY STRONG POSITION TO BE ABLE TO HAVE WHAT COULD END UP BEING VERY DIFFICULT DISCUSSIONS ABOUT WHAT IS SERVED IN THIS COMMUNITY.
SO THERE IS THIS PROVERBIAL CHECKLIST THAT, IF YOU REMEMBER, JASON KIND OF WALKED THROUGH THAT ONE TIME ON THE TRIPLE A RATING, AND YOU'LL, YOU'LL NEVER SEE, YOU KNOW, SOMETHING ABOUT A PERCENTAGE OF YOUR UNER UNRESERVED, UNDESERVED UNRESERVED, UND DESIGNATED FUND BALANCE.
UM, BUT YOU WILL SEE SOME REFERENCE TO FUND BALANCES ARE STRONG.
AND SO ACROSS THE BOARD, THE COUNCIL HAS BEEN EXTREMELY, I'LL USE THE WORD CONSERVATIVE FOR ALL OF OUR FUND BALANCES IN ALL OF OUR, UH, VARIOUS, UH, BUCKETS.
UH, SO I HOPE THAT RESPONDS TO YOUR QUESTION.
SO I'M GONNA ADD, YEAH, PART OF THAT WAS DRIVEN BY THE AAA RATING AND FOR YEARS MOODY, UH, UH, STANDARD CORE AND MOODY'S REFUSED TO GIVE THEIR CRITERIA FOR WHAT ACTUALLY WOULD CONTRIBUTE TO AAA BOND RATING.
AND ABOUT TWO OR THREE YEARS AGO, I DON'T REMEMBER IF THEY BASICALLY STARTED TO ADMIT THAT THERE WAS A NUMBER, AND JASON SAID IT WAS 35, MAYBE 40, WE DECIDED TO, TO PLAY ON THE CONSERVATIVE SIDE.
UM, THE SIZE OF THE CITY IS A BIG FACTOR, AND THE SMALLER THE CITY YOU ARE, THE MORE DIFFICULT IT IS TO GET THE AAA.
SO WE COLLECTIVELY DECIDED TO GO FOR 50%, UM, UNASSIGNED FUND BALANCE JUST TO PROTECT THAT AAA RATING.
SO, UH, IN, IN SIMPLISTIC TERMS, UM, FROM A PERSONAL FINANCE STANDPOINT, UH, CAN I TREAT THIS AS SOMETHING THAT I'VE INVESTED IN THE STOCK MARKET? AND IF I WANT TO BUY A HOME, I STILL GO TAKE A MORTGAGE.
UH, AND THAT WOULD BE THE EQUIVALENT OF TAKING A BOND FOR, LET'S SAY BUILDING A NEW PARK.
UM, UH, I'LL, I'LL USE THE CONVERSATION THAT WE HAD WITH, UH,
THE STATE CHANGES THE LAW AND OUR SALES TAX GETS REDUCED BY 50% OR SOMETHING ALONG THOSE LINES BECAUSE OF THE WAY THAT YOU HAVE SUPPORTED TO DO THE BUDGET.
WE ARE IN A POSITION OF YOU CAN USE CASH IF YOU WANT TO, YOU CAN, UH, DO A GENERAL OBLIGATION BOND IF IT NEEDS TO BE DONE, OR YOU CAN ISSUE CERTIFICATES OF OBLIGATION AS LONG AS THEY'RE STILL ALLOWING US TO DO
[01:35:01]
THAT.SO WHERE YOU'RE TALKING ABOUT DOING A MORTGAGE ON A LOAN, I GUESS IS THE WAY TO SAY IT, OR A MORTGAGE ON A HOME, WE HAVE THE THREE OPTIONS.
YOU MAY NEED TO HAVE THE MORTGAGE, RIGHT? WE DON'T NECESSARILY HAVE TO NEED THE MORTGAGE.
I'LL GIVE YOU A SPECIFIC EXAMPLE.
WE CAME TO YOU ABOUT THE FIRE STATIONS.
WE HAVE THE SET ASIDE FOR THE FIRE STATIONS FOR THE CASH TO BE ABLE TO DO THAT.
WE PASSED A, UH, RESOLUTION FOR REIMBURSEMENT THAT IF YOU CHOOSE, YOU CAN THEN GO OUT AND ISSUE DEBT BECAUSE THAT IS A 50 YEAR INVESTMENT, RIGHT? UH, SO YOU CAN GO OUT AND ISSUE DEBT AND THEN QUOTE, PAY BACK THE GENERAL FUND AGAIN THROUGH THE FUND BALANCES, THAT THEN FREES YOU UP TO DO SOMETHING ELSE.
DOES THAT MAKE SENSE? MAKES SENSE.
AND THEN ANOTHER WAY TO LOOK AT THIS, AND THIS IS, I'LL USE THIS AS A STORY.
UH, I'M, I'M PICKING ON
THE, YOU'VE PLANNED FOR A BIG TRIP AND SO YOU TAKE YOUR, AND YOU KNOW, YOUR MONTHLY INCOME OR WHATEVER, AND YOU SET ASIDE AND PUT OVER HERE FOR THIS BIG TRIP MM-HMM
UM, ALONG THE WAY, AT THE END OF THE YEAR, YOU HAVE SO MUCH MONEY READY TO GO FOR THAT BIG TRIP, RIGHT? SO YOU SAVE THAT MONEY THE NEXT YEAR, YOU MAY NOT BE TAKING THAT BIG TRIP.
SO ARE YOU GONNA CONTINUE SAVING OR ARE YOU GONNA BUILD IT INTO, OPERATE INTO YOUR DAILY BUDGET, RIGHT? BUT YOU SURVIVED THIS YEAR WITHOUT IT.
WE'RE OPERATING, OUR OPERATIONS AND MAINTENANCE ARE OPERATING AS IF WE DON'T HAVE THAT MONEY.
AND SO THIS GOES TO WHEN DON IS, YOU KNOW, KIND OF RAISED SOME TIMES BEFORE ABOUT, WELL, WHAT HAPPENS WHEN IT STOPS COMING IN? THAT'S, THAT'S WHY WE'VE DONE IT THIS WAY.
WE HAVE NOT, I USED THE STORY YESTERDAY.
BROWN ROCK WENT THE COMPLETE OPPOSITE.
THEY KEPT USING THE SALES TAX IN THEIR OPERATIONS AND MAINTENANCE, UNDERSTANDING THAT THERE WAS A RISK.
THAT'S HOW THEIR COUNCIL CHOOSE, CHOSE TO GO FORWARD.
THAT'S NOT HOW WE CHOSE TO GO FORWARD.
SO THE EXCESS MONEY WE HAVE FROM THE SAVINGS OR EXCESS MONEY FROM THE
I, I GUESS, UH, LET ME RESTATE MY QUESTION, RIGHT? UH, AND I UNDERSTAND THE BENEFIT OF INS, UH, LINE ITEM.
SO, UH, YOU KNOW, KEEPING THAT ASIDE, LET'S SAY WE ARE TRYING TO BUILD A NEW FIRE STATION AND IT'S GOING TO COST US 20 MILLION.
UM, WHAT ARE THE PROS AND CONS OF USING 20 MILLION FROM THIS FUND VERSUS ISSUING A BOND? SO THAT'S, THAT'S WHERE I'M COMING FROM.
AND THE, AND THE ANALYSIS, I'LL JUST USE THE CURRENT MARKET RIGHT NOW IN THE ANALYSIS.
WHAT ARE WE DRAWING ON INTEREST ON OUR OWN MONEY? WHAT ARE THE INTEREST RATES IN THE MARKET? AND ARE THEY REASONABLE, RIGHT? FOR US TO BE ABLE TO COME TO YOU TO GIVE A RECOMMENDATION TO SAY, WE HAVE THESE TWO OPTIONS AND THEN THIS OPTION, THIS IS WHAT IT'S GOING TO COST US, AND THIS OPTION, THIS IS WHAT'S GOING TO COST US.
HERE'S THE PIECE THAT THOUGH, IN THAT EVALUATION, WHAT IS THE RISK OF NOT HAVING THAT CASH ANYMORE? MM-HMM
RIGHT? AND SO THAT'S WHERE Y'ALL ARE GENERALLY EXTREMELY CONSERVATIVE ABOUT THE WAY YOUR APPROACH IS.
AND I CAN'T PREDICT, BUT GIVEN WHAT I'M AWARE OF, HAVING THE OPTION TO BE ABLE TO GO NOW AND ISSUE DEBT FOR THOSE FIRE STATIONS PUTS YOU IN A REALLY STRONG POSITION.
'CAUSE YOU MAY SAY, I'D RATHER KEEP THAT CASH ON HAND FOR THE PROVERBIAL RAINY DAY.
AND I HATE USING THAT TERM BECAUSE OF THE WAY THE STATE USES IT.
BUT, UM, AND THAT'S WHY, AND THEN HERE'S ANOTHER THING TOO.
THE, THE GREAT THING ABOUT THE FUND BALANCE LANGUAGE IS THOSE ARE PROJECTS THAT ARE IDENTIFIED.
AND THAT DOES NOT NECESSARILY MEAN THAT THAT'S WHAT THEY HAVE TO BE USED FOR.
BECAUSE UNTIL WE BRING A PROJECT FORWARD, FOR EXAMPLE, ON THE TRAILS IN OUR MASTER TRAIL PLAN, THEY IDENTIFIED PROBABLY NEEDS TO BE UPDATED, BUT THEY IDENTIFIED ABOUT $6 MILLION WORTH OF WORK TO FINISH OUR ENTIRE TRAIL SYSTEM.
WELL, WE DON'T EVEN HAVE THE CAPACITY TO MANAGE THAT MUCH WORK, RIGHT? SO IT'S COMING TO YOU IN PIECES.
AND SO AS EACH PIECE COMES FORWARD, THAT NUMBER WILL GO DOWN.
SO, SO THIS IS REALLY FLEX, UH, THE SAME WAY WITH THE MEDIANS.
YOU KNOW, THE, I HAS THAT HAS THE WATER PROJECT, IS THAT, DID THAT AMENDMENT COME TO ON THE MEDIAN ON SANDY LAKE? I THINK IT DID, DIDN'T IT? YES.
[01:40:01]
IT'S BEEN REDUCED.SO ON THE MEDIAN PROJECT AS AN EXAMPLE, UM, THAT'S BEEN IN THE WORKS FOR A COUPLE YEARS UNDER DESIGN, YOU KNOW, THEY'RE HAVING TO DO SOME MODIFICATIONS TO THE DESIGN BECAUSE OF THE, UH, DALLAS WATER LINE.
BUT SOON AS YOU, IF YOU GIVE THE GREEN LIGHT TO THAT PROJECT, WHEN YOU GIVE THE GREEN LIGHT TO THAT PROJECT, THAT MEDIUM PROJECT LINE ITEM THERE THAT SAYS 6.8 MILLION WILL BE REDUCED AND THAT THEN WILL SHOW UP IN THE ONGOING BUDGET IS A ONE TIME EXPENDITURE.
RIGHT? SO DOES THAT HELP YOU TO UNDERSTAND? YEAH.
I THINK MARK HAD A, I THINK MARK HAD A QUESTION MARK.
YEAH, I, NO, I DIDN'T HAVE A QUESTION.
UM, WHEN YOU TALK ABOUT, UM, MUNICIPAL PROJECTS, UH, PAYING FOR, UH, THE COST THROUGH BONDS, YOU KNOW, IS IT'S THE CONCEPT OF INTER INTERGENERATIONAL EQUITY AND THAT THAT COST IS SPREAD ACROSS, UM, PEOPLE NOT ONLY LIVING HERE NOW, BUT IN THE FUTURE.
SO, UM, JUST THE CURRENT RESIDENTS ARE NOT, UH, UH, SHOULDERING ALL THE BURDEN.
ANYBODY ELSE? ALRIGHT, CONTINUE ON.
OKAY, THEN IF THERE'S NO MORE QUESTIONS ON THIS, WE ARE
[5. 2026-0290 Presentation of forecasted assessed valuations.]
GOING TO MOVE INTO THE PRESENTATION AND DISCUSSION REGARDING THE ASSESSED VALUES.SO, UH, WE HAVE COVERED THE FORECASTED EXPENDITURES OF THE GENERAL FUND AND THE REVENUES NEEDED TO SUPPORT THE PROGRAMS AND SERVICES, UH, THE EXPENDITURE SUPPORT.
SO NEXT I'M GONNA SHARE WITH YOU THE PRELIMINARY ASSESSED VALUES AND THE INFORMATION FOR THIS SECTION CAN BE FOUND BEHIND THE ASSESSMENT VALUATION TAB IN YOUR NOTEBOOK.
UH, THE INFORMATION I'M ABOUT TO SHARE IS VERY PRELIMINARY AS IT'S FROM JULY 8TH REPORT, WHICH IS 17 DAYS BEFORE THE DATE, UH, THAT WE RECEIVED CERTIFIED VALUES, UM, WHICH WILL BE THIS SATURDAY, JULY 25TH.
SO I INCLUDED, UH, THIS, UH, THIS, UH, CHART, UM, AND I WANTED TO SHARE IT WITH YOU BEFORE WE COVER THE JULY 8TH VALUES.
UM, AND SO WHAT THIS IS SHOWING YOU IS IT'S SHOWING YOU THE VALUES AS OF JUNE OF 2025 COMPARED TO JUNE OF 2026.
AND SO, UH, THIS IS THE FIRST, UH, PAGE IN YOUR, UH, NOTEBOOK BEHIND THE ASSESSED VALUATIONS.
UM, AND THE CHANGE IN VALUE BETWEEN THESE TWO TIME PERIODS IS AN INCREASE OF 2.93%.
AND I'M ONLY SHOWING YOU THIS SO THAT YOU CAN SEE HOW VALUES CHANGE OVER TIME, UM, AS THE APPRAISAL DISTRICT DOES THEIR WORK.
AND SO I WANT YOU JUST TO REMEMBER THAT THE, THE VALUE IN JUNE, UM, WAS THIS 13 BY ALMOST $13.7 BILLION BECAUSE NOW I'M GONNA SHOW YOU A COMPARISON, UM, OF THE JULY 8TH TO THE, UH, CERTIFIED VALUES FOR 2025.
BUT WHAT I WANT YOU TO NOTICE IS THAT THAT 13, UM, 13 POINT, UH, ALMOST 7 MILLION BY JULY 8TH, IT WAS DOWN, OR BILLION, IT WAS DOWN TO 13.3.
SO YOU CAN SEE THAT THEY'RE WORKING THROUGH, UM, ANY OF THE PROTESTS THEY HAVE, UH, AND UPDATING NUMBERS.
UM, THEY'RE WORKING THROUGH ANY EXEMPTIONS THAT NEED TO BE ADDED TO PROPERTIES, UM, AND DOING ALL OF THEIR DUE DILIGENCE TO GET US CERTIFIED VALUES.
UH, SO THIS SLIDE SHOWS THAT THE INCREASE OF, UM, IN CERTIFIED VALUES FROM 2020, THE 2025 CERTIFIED VALUES TO THE JULY 8TH, WE HAVE AN INCREASE OF 6.88%, OR ABOUT $858 MILLION.
THE 30 YEAR AVERAGE INCREASE BETWEEN YEARS, UM, FROM WHEN WE GET PRELIMINARY VALUES TO CERTIFIED VALUES IS ABOUT A 4.6% INCREASE.
UM, AND SO THAT WOULD, UH, MEAN THAT OUR VALUES WOULD COME IN AT ABOUT 13.2, UH, WHICH WOULD BE ABOUT A, UM, 5.8100000000000005% INCREASE OVER THE 25, UH, 2025 CERTIFIED VALUES.
SO THE BOTTOM, AND IT'S NOT ON THIS SLIDE, BUT I DID WANNA POINT OUT THAT THE BOTTOM SECTION OF PAGE TWO BEHIND THE ASSESSED VALUATION SECTION OF YOUR NOTEBOOK DOES SHOW THE REASONS FOR THE GROWTH, WHICH IS EITHER NEW CONSTRUCTION OR REAPPRAISALS.
WITH REAPPRAISALS REALLY DRIVING THE INCREASE IN VALUES.
I ALSO WANTED TO POINT OUT, UM, THE VERY LOW INCREASE IN BUSINESS PERSONAL PROPERTY, UH, THAT VALUE, IT'S ONLY 0.06, AND I WANT YOU TO CALL THAT LAST NOVEMBER, VOTERS WERE ASKED
[01:45:01]
TO CAST BALLOT BALLOT BALLOTS ON WHETHER THEY APPROVE, WOULD APPROVE A CONSTITUTIONAL AMENDMENT, INCREASING THE EXEMPTION ON BUSINESS PERSONAL PROPERTY FROM $2,500 TO 125,000 THAT, UH, THAT MEASURE DID PASS.AND I THINK THAT WE ARE OBVIOUSLY SEEING THE IMPACT, UM, OF THAT ON OUR BUSINESS PERSONAL, UH, PROPERTY VALUES.
AND SO THAT 'CAUSE THAT GROWTH IS NORMALLY IN THE TWO TO 3% RANGE.
SO KIM, I'M NOT FOLLOWING THAT.
'CAUSE THE NUMBERS I'M LOOKING AT ARE NOT WHAT YOU'RE I'M ON PAGE TWO.
SO, UM, SO THEY'RE ON PAGE TWO AT THE BOTTOM.
WELL, ACTUALLY, UM, I'M SORRY.
YOU KNOW, I AM SHARING WITH YOU NUMBERS THAT I CALLED TODAY WHEN I TALKED TO YOU ABOUT THE 0.06.
YEAH, I WAS, I WAS LOOKING FOR THAT AND I, I WASN'T
SO AS OF TODAY WE'RE, UM, I APOLOGIZE.
AS OF TODAY WE, THE TAXABLE VALUE IS ABOUT 13.2.
SO, UM, THE VALUE BETWEEN 2025 CERTIFIED AND THE WHERE WE'RE AT TODAY IS A $725 MILLION INCREASE OR 5.8, AND IT'S TODAY'S VALUES THAT THEY'VE WORKED IN ALL OF THE EXEMPTIONS FOR BUSINESS, PERSONAL PROPERTY, IT LOOKS LIKE.
AND THAT IS, UM, GOING, IT'S ONLY, UH, 1,912 MILLION.
SO IT TODAY IS, UH, THAT THAT DECREASE OR THAT INCREASES WENT TO 0.06%, WHEREAS WHEN YOU LOOK AT THE JULY 8TH, IT WAS A 2%, I APOLOGIZE, WE'RE DOING THAT.
AND THAT IS, WE BELIEVE IS THE INCREASE IN THE EXEMPTION THAT WAS APPROVED BY VOTERS FOR BUSINESS PERSONAL PROPERTY.
AM I, AND AM I READING THAT RIGHT? IT WAS ABOUT A HUNDRED MILLION DOLLARS, UM, OF A REDUCTION? UH, YES.
92, NO, 90, IT WAS NINE 5 MILLION.
UM, SO IT'S ONLY INCREASING A MILLION.
AND SO WE WENT FROM, UM, IT WAS AT A MILLION, 1,000,000,900 50,000 AND IT'S DROPPED TO 1,000,912 OR 1,000,000,912.
CAN'T DEAL WITH THESE LARGE NUMBERS.
UM, BUT THE CERTIFIED VALUE LAST YEAR FOR BUSINESS PERSONAL PROPERTY WAS 1,000,000,911.
AND IF YOU LOOK, UM, IT'S REALLY, THE INCREASES ARE REALLY PRIMARILY DUE TO THE REAPPRAISALS.
UM, AND THAT'S ON PAGE TWO IN YOUR BOOK, IF YOU'RE JUST LOOKING AT THE JULY 8TH.
AND THAT'S PRETTY CONSISTENT WITH WHERE WE ARE, UM, WHERE WE WERE AS OF TODAY AND NEW CONSTRUCTION.
UM, WE'RE ONLY SEEING ABOUT 10 MILLION, UH, INCREASED IN VALUE FROM NEW CONSTRUCTION FOR RESIDENTS.
AND WE'RE SEEING ABOUT 75 MILLION IN NEW CONSTRUCTION FROM BUSINESS COMMERCIAL PROPERTY.
AND THAT'S DOWN FROM WHAT YOU'RE SEEING FOR JULY 8TH, IT WAS 150 MILLION.
JIM, JUST A REAL QUICK QUESTION.
IT'S KIND OF AN ASIDE, BUT HAVE YOU EVER SEEN ANYTHING COMPARING THE APPRAISED VALUES FROM DCA ON COMMERCIAL PROPERTY TO ACTUAL SALES FIGURES? THANK YOU ELSE ON THIS ONE.
THAT REALLY IS, I JUST, UM, AGAIN, WE'RE EXPECTING KIM, SORRY, RAMESH.
THANK YOU MAYOR KIM AGAIN FOR THE BENEFIT OF ANYONE THAT'S LISTENING IN.
UH, AS FAR AS THE REVENUES WE COLLECT, UH, IT IS STILL THREE POINT, UH, 4, 9 9 OF LAST YEAR REVENUE.
UH, AND THE ONLY REASON YOU'RE COVERING THIS, UH, THE VALUE, THE VALUATION IS BECAUSE WHEN WE CALCULATE THE RATE, UH, WE PUT THE REVENUE ON THE TOP, WHICH IS 3.499 OF PREVIOUS YEAR'S REVENUE.
AND THE DENOMINATOR IS THE, UM, THE, THE EVALUATION.
SO, UM, IF THE DENOMINATOR GOES UP HIGHER THAN THE NUMERATOR, THEN THE, THE TAX RATE WOULD COME DOWN, OTHERWISE IT WOULD BE THE OTHER WAY AROUND.
UM, SO AS VALUES GO UP, THE TAX RATE COMES DOWN.
AS VALUES GO DOWN, THE TAX RATE WOULD GO UP.
SO AS LONG AS WE'RE SEEING AN INCREASE IN VALUES, THE TAX RATE SHOULD COME DOWN AND WE ARE NOT ANTICIPATING A DECREASE IN VALUES.
IT'LL COME DOWN AS LONG AS THE DENOMINATOR GROWS AT A HIGHER RATE THAN THE NUMERATOR.
[01:50:05]
THANK YOU.ANYTHING ELSE? I DO WANT TO POINT JUST, UM, POINT OUT A COUPLE MORE THINGS.
UM, ONE IS THAT THE RESIDENTIAL PROPERTIES WITH A HOMESTEAD EXEMPTION CAN ONLY INCREASE 10%, UM, AND NO MORE EACH YEAR.
I ALSO WANTED TO MENTION WE'VE BEEN, UM, SHARING WITH YOU THAT THERE WAS THIS CIRCUIT BREAKER LEG LEGISLATION THAT WAS PASSED IN 2023 THAT, UH, IT LIMITED, UH, TO A 20% INCREASE IN APPRAISED VALUE OF NON-HOMESTEAD REAL PROPERTY THAT WAS VALUED UNDER 5 MILLION.
SO RENTAL PROPERTIES WOULD'VE FALLEN IN THAT CATEGORY, UM, AND SMALL BUSINESSES, BUT THE CIRCUIT BREAKER LIMITATION ACTUALLY DOES EXPIRE AT DECEMBER 31ST OF THIS YEAR UNLESS THE LEGISLATURES VOTE TO EXTEND IT DURING THEIR LEGISLATIVE SEC SESSION NEXT YEAR.
SO IT'S JUST SOMETHING WE'LL BE WATCHING TO SEE IF THEY EXTEND IT.
SO KIM, EVEN IF THE 10% VALUATION GOES UP, IT DOESN'T MATTER.
BECAUSE WE ARE ONLY INCREASING BY 3.499 FROM LAST YEAR'S REVENUE.
THE IMPACT THAT THE INCREASE IN VALUES HAS IS IT IMPACTS YOUR, YOUR TAX RATE, RIGHT? BECAUSE I CAN ONLY, MY, MY, UM, MY, MY REVENUE IS I CAN ONLY INCREASE IT THE 1,600,000 THAT, THAT WE SHARED EARLIER, RIGHT? THAT WAS THE 3.499% INCREASE.
I CAN ONLY INCREASE IT THAT MUCH.
RIGHT? SO THE VALUES ARE JUST GONNA DETERMINE WHAT RATE DO I NEED TO GENERATE THAT 1.6.
RIGHT? SO YOU NEED, THE PROPERTY VALUE GOES UP BY 10%, DOESN'T MATTER TO OUR CALCULATION HERE WE ARE ONLY LOOKING AT 1.6 MILLION, CORRECT? CORRECT.
BUT IT DOES AFFECT THE TAX RATE OF THE RESIDENT TAX RATE WILL GO DOWN ANYWAY BECAUSE END UP EVALUATION OR NO DO, RIGHT? YEAH.
UM, CAN YOU GO BACK TO THE FUND BALANCE, UM, FOR JUST A SECOND BECAUSE ONE OF THE THINGS THAT, UH, PROPERTY TAX REDUCTION LAWSUITS AFTER CERTIFIED VALUES, DO YOU WANNA TALK JUST A MINUTE? THE REASON WHY WE'VE CREATED THAT NOW AFTER THE LAST COUPLE OF YEARS, ACTUALLY WE CREATED IT LAST YEAR.
UM, SO WHAT HAPPENS IS WE GET CERTIFIED VALUES AND WE BUILD A TAX TAX RATE BASED ON THOSE CERTIFIED VALUES.
AND THEN WHAT HAPPENS IS THEY'RE CONTINUALLY CONTINUING TO, UM, UH, WORK THROUGH, UH, PEOPLE WHO HAVE PROTESTED.
UM, AND SO WHAT WE FIND, OR LAWSUITS, THERE ARE LAWSUITS OUT THERE THAT HAVE BEEN OUT THERE FOR MULTIPLE YEARS THAT AREN'T SETTLED AND MAY BE SETTLED, UM, DURING THIS YEAR.
AND SO THROUGHOUT THE YEAR, UH, THEY SEND US WHAT'S CALLED A SUPPLEMENT.
AND WHAT THE SUPPLEMENTS DO IS THEY REDUCE THE ACT, THE ACTUAL TAXABLE VALUE OF PROPERTY.
SO WE MAY THINK THAT WE ARE GOING TO GENERATE $48 MILLION IN PROPERTY TAX FOR THE GENERAL FUND, BUT AT THE END OF THE DAY, AS THEY'RE WORKING THROUGH AND DECREASE, THEY'RE DECREASING THAT VALUE AND TYPICALLY THEY'RE DECREASING, THEY ARE NOT INCREASING.
SO WE ULTIMATELY, UM, AND WE HAVE BEEN, UH, ACTUALLY COLLECTING LESS PROPERTY TAX THAN WHAT WE SET THE TAX RATE AT FOR THE YEAR.
UM, AND THAT IS SIMPLY DUE TO THE SUPPLEMENTS THAT HAPPEN.
AND SO, UM, I POINTED THIS OUT TO MIKE AND THAT'S WHEN WE DECIDED THAT WE REALLY NEEDED TO CREATE THIS, UM, LAWSUITS AFTER CER CERTIFIED VALUES BECAUSE MORE AND MORE THE, THE BOTH APPRAISAL DISTRICTS, DENTON AND DALLAS, UM, TELL US EVERY YEAR WE, WE HAVE MORE PROTESTS THAN WE'VE HAD THE PREVIOUS YEAR.
UM, DENTON DIDN'T KNOW THAT THEY, IF THEY WERE GONNA BE ABLE TO GET THEIR, UM, ACTUAL CERTIFIED VALUES FOR THIS YEAR, THEY THOUGHT THEY WERE GONNA HAVE TO DO CERTIFIED ESTIMATES BECAUSE THEY HAD SO MANY PROTESTS.
BUT THEY NOTIFIED US THAT THEY'RE, THAT THEY'RE WORKING THROUGH THEM AND THEY'RE GONNA BE ABLE TO ACTUALLY PROVIDE VALUES.
AND, AND THIS IS IMPORTANT BECAUSE WHEN WE GET THE CALCULATION, BECAUSE THEY HAD TO PROVIDE THE CALCULATION, THEY USE THE LOWER NUMBER THEY DON'T USE.
SO THAT 3.49% THAT YOU'RE TALKING ABOUT RIGHT NOW, WE'RE USING IT BASED ON THE BUDGET, BUT THEY ACTUALLY CALCULATE IT ON THE LOWER NUMBER.
THEY GO AHEAD, THEY START, THEY START OUR, OUR STARTING POINT IS LESS THAN THE STARTING POINT.
I'M SHOWING YOU THEIR STARTING POINT IS WHERE WE ACTUALLY END UP AFTER ALL OF THE SUPPLEMENTS, BUT WE, WE ARE SHOWING YOU WHERE WE THE BUDGET.
SO THE REASON WHY WE DID THIS IS BECAUSE IT'S FORWARD FACING
WE ARE NOT GONNA KNOW THAT UNTIL WE'RE DEVELOPING THE NEXT YEAR'S BUDGET.
SO WE THAT WE CAME TO YOU, AND NOW YOU PROBABLY DON'T REMEMBER THIS, BUT WE, WE CAME TO YOU
[01:55:01]
AND SAID, WE NEED TO CREATE THIS LINE ITEM BECAUSE THEY ARE STARTING WITH A LOWER NUMBER, WHICH THEN HAS A MATERIAL IMPACT ON THE CALCULATION FOR THE BUDGET THAT YOU'RE CONSIDERING.SO WHEN WE GET THAT INFORMATION, WE'LL, WE'LL KNOW WHAT NUMBER THEY USE.
IT'S A GOOD THING YOU ADDED THAT LINE, RIGHT? I SUPPORT THAT.
AND IN FUTURE SIX MONTHS FROM TODAY, YOU CAN COME BACK AND TELL US OUT OF THAT 5 MILLION HOW MUCH IF WE HAD TO USE ANY AT ALL.
SO FAR WE HAVEN'T, WE HAVEN'T.
WE'VE BEEN ABLE TO, I MEAN, SALES TAX, THERE'S NO REASON TO COME ASK FOR IT BECAUSE RIGHT, RIGHT.
SO IT'S JUST A WEIRD THING IN THE LAW.
SO JUNE, RAMESH AND THEN DONNA, UM, OKAY, SO I KNOW THERE'S A DEADLINE BY WHICH PEOPLE HAVE TO PROTEST THEIR APPRAISED VALUE.
IS THERE A DEADLINE UNDER THE LAW FOR THE APPRAISAL DISTRICT TO ISSUE A FINAL DISPOSITION OF THAT PROTEST? IT GOES TO THOSE LAWSUITS AND THOSE CHALLENGES? THAT'S, THAT'S TO, TO YOUR QUESTION.
UH, SOME OF THE LAWSUITS MULTIPLE YEARS AND THEY COULD SHOW UP IN THIS YEAR'S BUDGET AS FAR AS THE VALUES ARE CONCERNED.
BUT I MEAN, I I I WAS JUST CURIOUS, LIKE, OKAY, SO I PROTESTED BY THE DEADLINE, BUT IS THERE LIKE A CUTOFF DATE BY WHICH THEY HAVE TO RULE ON IT BEFORE I EVEN DECIDE TO FILE A LAWSUIT BASED ON THE RULING? NO, WE'RE, WE'RE NOT AWARE.
ONE OF THE ONLY, THE ONLY REQUIREMENT IS THEY, THEY ARE TO HAVE, UM, 95% OF THEIR, UM, THEIR, UH, PROPERTIES CERTIFIED THE VALUES OF 95% OF THEIR PROPERTIES CERTIFIED BY, UM, BY JULY 25TH OF EVERY YEAR.
SO WE REALLY DON'T KNOW WHEN WE'RE GONNA GET THE FINAL NUMBER THERE, BUT IF THEY DON'T MEET THAT THEY CAN CERTIFY ESTIMATES.
AND THAT, THAT IS ALLOWED BECAUSE OF ALL THE PROTESTS.
AND THE BIGGEST, QUITE FRANKLY, IT'S NOT THE RESIDENTIAL, IT'S THE COMMERCIAL PROPERTY.
WELL, I MEAN, THEY'RE ONLY JACKING IT IN 24 BY 54%.
I MEAN, WHAT'S THE PROTEST
NO, I, I WAS GLAD TO SEE YOU GUYS RECOMMEND THAT.
IT JUST BUILDS A LITTLE INSURANCE AGAINST A BARRIER AND IT'S VERY, IT IS A VERY FIRST SPECIFIC ITEM.
RAMESH, THANK YOU, MAYOR AND KIM, UM, I HOPE I CAN DESCRIBE THIS CORRECTLY.
SO THIS IS NEW INFORMATION THAT I WAS NOT AWARE THAT, UH, WE HAVE THIS LAWSUITS AND THE EVALUATION USUALLY GOES DOWN.
SO, UH, AT THE BEGINNING, UH, THE BE THE END OF THIS PROCESS, UH, IN THE NEXT COUPLE OF MONTHS, IF WE COME BACK AND SAY YOUR TAX RATE IS 37, UH, CENTS FOR EVERY DOLLAR, WHATEVER, WHATEVER.
UH, WHAT, WHATEVER RATE THAT WE CALCULATE, UH, WE BASED IT ON A DENOMINATOR THAT WAS ACTUALLY HIGHER THAN, THAN WHAT IT TURNS OUT TO BE.
SO IF WE CALCULATE 37 CENTS, UH, THE RESIDENT ACTUALLY SHOULD HAVE PAID 38 CENTS, BUT WE GAVE THEM A LOWER NUMBER, UM, BECAUSE, UH, WE DIDN'T ACCOUNT FOR THE, UH, LAWSUITS.
AM I STATING THAT CORRECTLY? WELL, WE DON'T, WE'RE NOT GONNA KNOW THAT.
YEAH, WE'RE, WE'RE, I CAN'T TELL YOU TODAY THAT THAT'S HOW THAT'S GONNA WORK.
MY, MY BIGGER POINT, MIKE, IS UH, WE ARE ACTUALLY UNDER COLLECTING, UH, ON, ON, ON THE, ON THE TAXES, UH, BECAUSE WE ASSUME THE DENOMINATOR TO BE LARGER THAN IT ACTUALLY IS.
NO, WE, WE TAKE THE FACT THAT THEY USE THE TERM CERTIFIED VALUES ON THEIR FACE VALUE.
I UNDERSTAND WHAT YOU'RE SAYING.
YOU'RE DOING THE RIGHT THING, BUT I'M JUST TRYING TO EXPLAIN TO THE RESIDENTS THAT, UH, IT WOULD'VE BEEN 38 CENTS, BUT WE ACTUALLY CALCULATING 37 CENTS.
I, I, I DON'T, I CAN'T SAY THAT
AND SO WE WOULD ACTUALLY HAVE OVERCHARGED NO, OR UNDERCHARGE CHARGE UNDER, UNDER, THAT'S WHAT HE'S SAYING.
BUT, BUT I CAN'T SAY IT'S FROM 37 CENTS TO 38.
OH, YEAH, NO, THAT, THAT'S ALL I'M SAYING.
IT IT MAY BE 0.005% OR SOMETHING ALONG THOSE LINES.
UH, YOU SAID THAT THEY, THEY WORK OFF THE LOWER NUMBER.
I GUESS I DIDN'T, I WASN'T FOLLOWING THAT.
[02:00:01]
NEXT WEEK.BUT THEY
THEY ARE PROVIDING US SOME VALUE THAT IS INCREMENTALLY OKAY.
LESS THAN THE CERTIFIED VALUE.
AND IT WASN'T UNTIL TWO YEARS AGO THAT THAT STARTED SHOWING UP THAT WAY.
AND, AND THEN THAT'S WHEN IT'S LIKE, OKAY, ALL OF US, SOME OF THE COMMUNITIES THAT GOT HIT WITH IT WAS PANIC TIME.
I WON'T NAME THE PARTICULAR COMMUNITY, BUT IT WAS ABOUT A QUARTER OF THEIR VALUE, JUST A QUARTER OF IT.
SO HOW DOES IT, HOW DOES IT WORK? LIKE THIS FUND, THIS $5 MILLION? SO WE WILL, AS WE GET CERTAIN NEW CERTIFIED VALUES OR A RESOLVED CERTIFIED VALUE, WE WILL JUST TAP INTO THAT FUND BALANCE TO FILL A GAP IF WE HAVE ONE.
OR WHAT'S, I MEAN, I GUESS LOGISTICALLY HOW DOES SORT OF IT IT IS REALLY GOING TO BE, I'LL SAY THIS, THIS IS, IF OUR COMMERCIALS REALLY HIT US BIG AND WE HAVE, YOU KNOW, YES WE HAVE THE EXCESS SALES TAX AND YOU KNOW, THERE'S A LOT OF VARIABLES AND EVERYTHING, BUT IF SOMEBODY OUT THERE, YOU KNOW, UM, I'LL, THE BIG A COMPANY USE A LOT OF ROBOTICS, THEIR BUSINESS AND PERSONAL PROPERTY IS REALLY, REALLY HIGH, RIGHT? SAY THEY DO SOMETHING DIFFERENT AND ON THE TIME OF CERTIFIED VALUE, THEY HAVEN'T APPEALED, YOU KNOW, THEY DO THEIR APPEAL, BUT IT GOES THROUGH THEIR PROCESS, ALL OF A SUDDEN THERE'S A HUNDRED PLUS MILLION DOLLARS PLUS THAT JUST GOES AWAY.
OKAY? THAT'S THE TIME WHEN YOU SAY, OKAY, WE MAY HAVE TO TAP THAT, THAT, THAT, WE MAY HAVE TO TAP THAT, THAT WE GET.
IT ISN'T GONNA BE THE $5 MILLION DIFFERENCE OR THE, ANYTHING LIKE THAT.
SO KIM, WE HAVE A REC UH, REQUEST FOR A RECESS.
ARE YOU AT A STOPPING POINT? YES, YES.
UM, I'M GETTING READY TO DO THAT SERVICE, SO, OKAY, SO LET'S, LET'S GO AHEAD AND PICK A SHORT RECESS.
[6. 2026-0291 Presentation and discussion regarding the Debt Service Fund: A. Revenue Forecast B. Expenditure Forecast]
SO THE INFORMATION, UH, REGARDING THE DEBT SERVICE FUND CAN BE FOUND BEHIND THE DEBT SERVICE TAB IN YOUR BINDER.AND THE BOTTOM OF THE FIRST PAGE BEHIND THE DEBT SERVICE TAB IS WHERE YOU CAN FIND THE CHARTS THAT ARE ON THIS, UH, THIS SLIDE AND I'LL COVER REVENUES.
UH, THE I'LL COVER REVENUES THAT ARE SHOWN, UM, ON THIS CHART ON THE LEFT FIRST.
AND THE FUNDS REVENUE SOURCE IS ONLY THE INS PORTION OF THE PROPERTY TAX RATE.
AND IT CAN ONLY BE SET AT THE RATE NEEDED TO GENERATE ENOUGH REVENUE TO COVER THE PRINCIPAL AND INTEREST PAYMENTS DUE DURING THE FISCAL YEAR.
THE FISCAL YEAR 27 FORECASTED REVENUES OF, UH, 8.6 MILLION INCLUDES PROPERTY TAX REVENUE NEEDED TO COVER THAT PRINCIPLE AND INTEREST DUE AN ON OUTSTANDING CERTIFICATE OF OBLIGATION AND GENERAL FUND, UH, GENERAL REFUNDING OBLIGATION BONDS OUTSTANDING.
I'D LIKE TO POINT OUT, UH, THAT THE PROPERTY TAX REVENUE SHOWN IN THE PIE CHART INCLUDES $20,000 OF, UH, EXPECTED TO BE RECEIVED FOR PENALTIES AND INTEREST ON DELINQUENT TAXES.
THE TRANSFER IN OF ABOUT 3.5 MILLION REPRESENTS THE TRANSFER FROM BOTH THE WATER SEWER FUND AND THE CRDC FUND FOR THE PRINCIPAL AND INTEREST ON CERTIFICATE OF OBLIGATIONS ISSUED FOR WATER AND SEWER AND CRDC PROJECTS BECAUSE WATER AND SEWER REVENUE AND CRDC SALES TAX IS BEING USED TO PAY FOR THE BONDS ISSUED FOR THOSE, UH, RESPECTIVE PROJECTS.
MOVING TO THE CHART ON THE RIGHT EX, UH, THE EXPENDITURE CHART, THE TOTAL PRINCIPLE AND INTEREST SHOWN ON THE GRAPH IS ABOUT 12 MILLION.
AND THAT IS THE TOTAL PRINCIPLE AND INTEREST DUE ON ALL CERTIFICATE OF OBLIGATIONS OUTSTANDING AND, AND, UH, GENERAL REFUNDING BONDS OUTSTANDING FOR GENERAL PRO GENERAL PROJECTS AS WELL AS THOSE WATER, SEWER AND CRDC PROJECTS.
AND WE BEGAN SHOWING ALL OF THE CO DEBT, REGARDLESS OF THE FUNDING SOURCE AND THE DEBT SERVICE FUND TO PROVIDE MORE TRANSPARENCY CONCERNING THE AMOUNT OF COS OUTSTANDING.
AND WE DID THIS BECAUSE IF ANYTHING HAPPENS TO THE REVENUE SOURCE OF THE WATER SEWER FUND OR CRDC PROPERTY TAXES WOULD NEED TO BE SET TO COVER THE PRINCIPLE AND INTEREST DUE ON ALL OF THOSE COS UH, BECAUSE THE FULL, UM, THE, THE PROPERTY TAXES ULTIMATELY WHAT WAS PLEDGED, WHICH IS WHY THEY'RE AAA RATED
[02:05:02]
PAGES TWO THROUGH FOUR IN YOUR NOTEBOOK, UH, IT SHOWS A SCHEDULE FOR TOTAL TAX SUPPORTED DEBT.SO PAGE TWO SHOWS THE CURRENT PRINCIPAL AMOUNT OF BONDS OUTSTANDING IS ABOUT 95 POINT, UH, 4 MILLION.
AND PAGE THREE SHOWS THE TOTAL WATER SEWER BONDS OUTSTANDING.
AND THEN PAGE FOUR SHOWS JUST THE COS ISSUED FOR CRDC PROJECTS OUTSTANDING.
UH, WHEN WE PROVIDED, UH, THE SPECIAL REVENUE FUNDS LAST WEEK, THOSE SALES TAX REVENUE BONDS WERE PART OF, UM, THAT PRESENTATION.
SO DO YOU HAVE ANY QUESTIONS REGARDING THE DEBT SERVICE FUND?
SO, UM, FOR, FOR THE BENEFIT, EVERYONE, UH, KIM ACTUALLY LEARNED SOMETHING.
UH, I HAD ASKED YOU THE QUESTION ABOUT WHY THE INTEREST RATES ARE IN A RANGE AND YOU HAD EX YOU HAD EXPLAINED TO ME AND, AND TRY TO RECAP IT.
UH, PARTICULAR BOND CAN BE, UH, CAN HAVE MULTIPLE ISSUES OVER A PERIOD OF MONTHS OR YEARS.
SO THE INTEREST RATE IS DETERMINED AT THE TIME OF ISSUE.
SO, UH, ANY GIVEN BOND CAN BE, IF IT'S ISSUED OVER FIVE TIMES OVER TWO YEARS, IT CAN VARY FROM A 3% TO FOUR 4%.
SO DID I SAY THAT CORRECTLY? THANK YOU.
WELL, THAT CONCLUDES OUR PRESENTATION THIS EVENING.
UM, I'M GONNA TURN IT BACK OVER TO YOU FOR ANY FURTHER DISCUSSION AND GUIDANCE, UM, BECAUSE, UH, THE, THE STRATEGY SESSIONS ARE TO BE USED FOR YOU TO, UH, PROVIDE US INFORMATION SO THAT WE CAN TAKE THAT INFORMATION AND CREATE THE PROPOSED BUDGET THAT WE WILL BRING FORTH TO YOU ON AUGUST 4TH.
COUNSEL, ANY QUESTIONS, COMMENTS? UM, I DO WANT TO GO BACK TO, UM, UH, THE DISCUSS THE, THE CORE, UM, JUST, UH, I, I DID HAVE A QUESTION.
WHAT WAS THE, UM, UH, I KNOW KENT, UH, PRE PRESENTED, HE WAS TALKING ABOUT THE, IT WAS $24,000 TO UH, IF WE WERE GONNA REDUCE THE HOUR, LIKE TAKE, TAKE THE HOUR OFF, WHAT WAS THE, UM, SAVINGS FOR THE SUNSHINE ROOM REDUCTION? 35,760.
AND THERE IS THE SERVICE ORGS IS PART OF YOUR COUNCIL BUDGET AND WE'LL NEED TO, I THINK WE'RE GONNA DISCUSS THOSE.
UH, I JUST WANT TO COMMENT, UM, VERY APPRECIATIVE OF THE CM OFFICE, KIM AND, AND THE SFE FOR BEING VERY PATIENT WITH ANSWERING MY QUESTIONS.
HAVE WE EVER DONE A STUDY LIKE LOOKING AT WHAT, WHATEVER IT IS, DOUBLE A PLUS OR WHATEVER WOULD BE THE NEXT LEVEL DOWN COMPARED TO AAA, HOW MUCH WE'VE SAVED OVER ANY PERIOD OF TIME BY VIRTUE OF OUR AAA RATING? WE HAVE NOT.
IT WOULD THAT EVEN BE POSSIBLE? I MEAN, COULD WE LOOK BACK AT WHAT RATES WERE, AND I DON'T MEAN FOR YOU, BUT I'M THINKING ABOUT MAYBE ASKING HILLTOP TO DO OH YEAH, I JUST WROTE THAT JASON'S NAME DOWN
I, I THINK IT'D BE VALUABLE JUST FOR EVERYBODY TO HAVE SOME, I, WE TALK ABOUT THE BENEFIT OF THE AAA RATING AND, AND WE'VE, WE'RE KIND OF A UNICORN.
WE'RE THE SMALLEST OF EIGHT CITIES IN THIS STATE THAT HAVE AAA RATING, UM, AND ONE OF ONLY EIGHT.
SO IT WOULD BE INTERESTING TO SEE HOW MUCH THAT SAVED US.
'CAUSE YOU LOOK AT THE TOTAL OF ALL THE, YOU KNOW, 24 MILLION IN, IN DEBT, I MEAN, IN THE GRAND SCHEME OF THINGS FOR THE REST OF OUR BUDGET IS NOT, WE DON'T RELY A LOT ON DEBT.
UM, BUT IT WOULD, I DON'T KNOW, IT'D BE INTERESTING TO JUST SEE THE VALUE OF THAT AAA RATING, BUT IF IT GOES DROP, IF DROPS, IT'S ALREADY AFFECT THE FUTURE.
BUT IN THEORY, OVER THE PERIOD OF TIME THAT WE FLOATED ALL THIS DEBT, SAY LIKE OVER THE LAST 10 YEARS, UM, OR EVEN GOING BACK TO WHENEVER WE FIRST GOT THE AAA RATING, THE, THE AA PLUS OR WHATEVER THE NEXT RATING DOWN WOULD BE, WOULD'VE BEEN AT A HIGHER RATE THAN THE TRIPLE A RATING.
SO REGARDLESS OF WHAT THE PRIME MIGHT BE, WE WOULD'VE STILL PAID A HIGHER AMOUNT OF PRINCIP UH, INTEREST ON THE SAME PRINCIPLE.
KIM AND I HAVE BEEN BANDING BACK AND FORTH TODAY ON HOW THE BOND INTEREST RATES ARE SET AND DETERMINED.
[02:10:01]
AFTER THE CRDC MEETING LAST NIGHT, WE GOT DEEP INTO IT.AND I DON'T KNOW THAT JASON IS GONNA BE ABLE TO GIVE YOU A DEFINITIVE, CONCRETE ANSWER ON THAT.
YEAH, I WAS, I WAS KIND OF WONDERING BECAUSE IT'S, IT'S A VERY, IT, THE RATES CHANGED LITERALLY DAY TO DAY AND WORSE THAN THAT, WHEN, FOR EXAMPLE, WHEN YOU LOOK AT THE COST OF OUR BOND TO REISSUE EVERY DAY THAT YOU MOVE FORWARD, THE COST TO REISSUE, IT GOES DOWN.
I MEAN, IT'S A VERY DYNAMIC MM-HMM
CALCULATION AND, AND YOU CAN'T GO TO A SPREADSHEET AND PULL THAT OUT.
UH, IT'LL BE WORTH THE SEE WHAT IT CAN COME UP WITH.
BUT, UH, SHE AND I SPENT QUITE A TIME, IT WAS A REVELATION ON HOW COMPLICATED, WHEN YOU TAKE A LOOK AT, AT THE, THE, UH, RATE OVER TIME, IT'S NOT A FIXED, YOU KNOW, IT'S NOT LIKE A, UH, DON'T ADD 1.5% TO IT.
IT'S, YOU KNOW, IT'S THE RATE PLUS THIS, PLUS THIS, PLUS THIS, PLUS THAT.
IT, IT'D BE INTERESTING YEAH, TO, TO GET JASON TO, TO CHIME IN ON IT.
SO IT'S A 95 MILLION IN PRINCIPLE.
YOUR QUESTION IS JIM IF IT WAS LESS THAN AAA, HOW MUCH INTEREST WOULD BE MORE.
AND I, AND I DON'T KNOW THAT HE'LL BE ABLE TO GO BACK AND TELL YOU THAT ANSWER.
HE MAY NOT, I MEAN, THE BEST HE COULD DO, PROBABLY, LIKE, LIKE TAKE THE, THE BONDS WE FLOATED IN 2013, IF THOSE WERE FLOATED, IF THAT TOTAL, YOU KNOW, 9.095 MILLION WAS FLOATED OVER A COURSE OF LIKE FOUR DIFFERENT DAYS THROUGHOUT THAT YEAR, WELL THEN HE COULD LOOK AT THE, THE DATE WE SOLD, LIKE 2 MILLION OF THAT AND SEE WHAT THE RATE WAS ON THAT DATE.
MAYBE WHAT HE COULD DO VERY EASILY IS YOU PICK A BOND, UM, PICK ONE, SAY A $31 MILLION FOR 20 YEARS.
HE COULD TELL YOU TODAY WHAT IT'S GONNA COST WITH THE AAA, WHAT IT WOULD COST WITH AA PLUS.
YEAH, THAT WOULD BE A MUCH EASIER, THAT WOULD BE SOMETHING THAT HE CAN DO.
BUT YEAH, THERE WAS A PERIOD OF TIME THERE WHERE, UM, I MEAN THE, THE RATES WERE HIGHER AND, YOU KNOW, IT WAS GETTING KIND OF SCARY.
SO ANYWAY, SORRY, I, I, I'M NOT CUTTING OFF.
I JUST WANT TO ADD IN, AND, YOU KNOW, THIS IS OPEN DISCUSSION, BUT KEEP IN MIND AS WE GO FORWARD AND AS WE START TO HIT THE, THE AUSTIN GAP, ONE OF THE, THERE'S, WE WON'T BE ABLE TO RAISE OUR PROPERTY TAX, YOU KNOW, THAT'S PRETTY WELL FIXED NOW.
SO WE'VE GOT TWO WAYS OF, OF MEETING BUDGET.
WE CAN RAISE MORE REVENUE SOME WAY, WHICH WOULD BE FEES.
AND, AND, YOU KNOW, I GOTTA BE HONEST, THOSE, THOSE ARE NOT POPULAR.
AND THE OTHER WAY IS TO REDUCE STAFFING OVER TIME.
AND SO A LOT OF THE THINGS THAT YOU'RE HEARING IS LOOKING AT HOW TO GRADUALLY REDUCE STAFFING OVER TIME.
AND SO A LOT OF THE, YOU KNOW, A LOT OF THE THINGS THAT YOU'RE, YOU'RE STARTING TO HEAR, AND LIKE, BY THE WAY, WE'RE GONNA HEAR THIS FOR THE NEXT FIVE YEARS.
IT'S NOTHING NEW TODAY AND IT'S NOT GONNA GO AWAY.
SO WE JUST NEED TO BE READY FOR THAT, THAT CHANGE THAT'S GONNA BE COMING
BUT THE THIRD OPTION IS YOU CAN ALWAYS GO TO THE WATERS AND SAY, WE HAVE MORE MON EXPENDITURE.
WE CAN'T BECAUSE WE'RE FIXED AT 3.499.
IF YOU GO ABOVE, WE CAN ALWAYS GO TO THE OH OH OH, THAT'S A THIRD OPTION.
BUT YOU'D HAVE TO DO THAT EVERY YEAR.
BUT, BUT YOU WOULD HAVE TO DO THAT EVERY YEAR.
BUT, AND I, I MEAN, IT IS POSSIBLE, JIM.
WELL, THAT, THAT'S SOMETHING I'VE WONDERED ABOUT, THOUGH.
SO, I MEAN, WE GET THE APPRAISED VALUES ON JULY 25TH, AND WE'VE GOT, WHAT, AUGUST 13 IS WHEN WE TURN INTO A PUMPKIN ON HAVING TO CALCULATE THE RATE.
IS THAT, OH, NO, WE HAVE TO, SO WE HAVE TO CALCULATE THE RATE THIS WEEKEND BECAUSE, AND, AND ACTUALLY THE COUNTY WILL BE CALCULATING IT TO AND GET US, UM, THEIR RATE BY, UH, BY THE 31ST, SO NEXT FRIDAY, UM, AND THEN WE WILL COME TO COUNSEL.
UM, SO WE HAVE THAT THEN WE, UH, PRESENT TO YOU ON THE FOURTH, AND AT THAT TIME WE'LL SHARE WITH YOU WHAT THE, UM, TAX RATE IS THAT HAS BEEN CALCULATED AND THE REVENUE THAT IT'LL GENERATE.
AND THEN ON THE 25TH IS WHEN WE COME AND, UH, YOU HAVE TO APPROVE A MAXIMUM TAX RATE THAT WILL BE CONSIDERED MM-HMM
AND WE PUBLICIZE THAT IN A FULL PAGE AD.
UH, AND THEN ON THE EIGHTH IS WHEN WE HOLD THE PUBLIC HEARING ON THE BUDGET AND THE TAX RATE,
[02:15:01]
AND YOU VOTE ON THE BUDGET TAX RATE AND THEN RATIFY THE TAX RATE.SO WHEN WOULD WE HAVE THE ELECTION? SO THE ELECTION, UM, THAT OCCURS, UH, YOU WOULD HAVE TO CALL IT THE 71ST DAY TAX RATE MUST BE ADOPTED, UH, THE 17TH, AUGUST 17TH, THE ELECTION CODE DEADLINE TO CALL AN ELECTION ON THE TAX RATE IF IT'S HIGHER THAN THE APPROVAL RATE.
AND WE WOULD KNOW THAT IT WAS HIGHER THAN THE APPROVAL RATE ON THE FOURTH.
SO THEN WE'D HAVE 13 DAYS TO CALL AN ELECTION.
AND THEN WHEN WOULD THE ELECTION BE HELD? WELL, SO THEN THE, THEN WHAT YOU GET INTO IS YOU HAVE TO ADVERTISE IT FOR 10 DAYS BEFORE.
SO THAT MEANS IT HAS TO BE ADVERTISED SEVENTH.
AND WE HAVE TO HAVE IT INTO THE NEWSPAPER.
THE PAPER DOESN'T POST, OUR PAPER OF RECORD DOESN'T POST TILL THE EIGHTH, AND WE HAVE TO HAVE IT INTO THEM BY TUESDAY THE FOURTH.
SO WE'VE HAD IN ADVANCE OF THE MEETING, THEY MAKE IT VERY DIFFICULT.
SO THERE'S MULTIPLE THINGS HERE.
FIRST OF ALL, THAT'S THE ISSUE THAT WE STARTED RAISING WITH THE LEGISLATURE IS THE CALENDAR, RIGHT? DOESN'T WORK.
THE REALITY IS IT DOESN'T WORK.
NOW, IF YOU MOVE EVERYTHING BACK, YOU ARE THEN USING ESTIMATES AND YOU'RE ANTICIPATING, BECAUSE THE APPRAISAL DISTRICT DOESN'T HAVE TO PROVIDE THE INFORMATION TILL THE 25TH AND THEN THE VERIFICATION ON THE 31ST.
SO IT'S NOT AN EXCUSE, IT'S JUST THE LOGISTICS OF WORKING THAT OUT.
WE ARE, WE DON'T HAVE A PAPER, A OFFICIAL RECORD PAPER, SO THAT MEANS WE'RE USING THE RAMBLER OR THE DALLAS MORNING NEWS AS AN EXAMPLE.
AND SO THAT'S WHY THESE THINGS COME OUT IN ADVANCE.
UM, AND THERE HAVE BEEN A FEW CITIES THAT HAVE, UH, HAD THE ELECTION.
SOME HAVE HAD SUCCESS ONCE, UH, SOME HAVE NOT HAD SUCCESS, AND YOU IN ESSENCE GENERATE TWO BUDGETS, AND YOU OPERATE OFF THE BUDGET WITH THE 3.499, LET'S JUST SAY THAT AS AN EXAMPLE.
AND IF THE VOTERS VOTE IN SUPPORT OF THE HIGHER RATE, UH, THEN IT'S AFTER THE ELECTION THAT YOU COULD START USING THAT ADDITIONAL DOLLAR.
SO THAT WINDOW BETWEEN OCTOBER 1ST AND THE ELECTION IN NOVEMBER, UM, YOU'RE NOT REALLY MAKING A WHOLE LOT OF MOVEMENT, UH, BECAUSE YOU'RE HAVING TO WAIT TO SEE WHICH BUDGET IT IS THAT WE'RE ACTUALLY GONNA OPERATE ON.
BUT IT WOULD BE ON THE NOVEMBER CUT, ON THE NOVEMBER, WE WOULDN'T HAVE A SPECIAL ELECTION.
THE STATE DOESN'T ALLOW THAT ANYMORE.
YOU'RE, YOU'RE UNIFORM ELECTION DATES.
AND DIDN'T THE SCHOOL DISTRICT TRY TO, AND IT FAIL, THEY TAPER.
UH, THAT FAILED THIS LAST TIME.
UH, AND IT WAS GONNA GO UP A COUPLE OF CENTS.
UM, BUT I'LL, I'LL, CAN I, CAN I JUMP ON JUST ONE THING REAL QUICK OR DID YOU HAVE SOME, I JUST WANTED TO ASK YOU REAL QUICK QUESTION.
SO WHEN THE SCHOOL BOARD, WHEN THE, WHEN THE SCHOOL DISTRICT FLOATED THE VA, THE VADER VADER, THEY, THEY, THEY HAD IT IN PIECES.
YOU'RE, COULD WE DO THAT, UH, FOR A CITY WHERE, WHERE WE SAID, WELL, WE'RE GONNA RAISE THE RATE THIS MUCH IF YOU WANT.
I DON'T KNOW THE ANSWER TO THAT.
THAT WASN'T THE VADER, WAS IT? THAT WAS JUST THE BOND ELECTION.
WELL, THAT WAS JUST THE BOND ELECTION.
FOR THE BOND THAT BONDS, DID THEY HAVE A SEPARATE VADER IS JUST A, HERE'S THE TAX RATE, 2.3 PENNIES OR WHATEVER IT WAS TO GENERATE THAT WAS AS MUCH MONEY.
AND THEN THEY GOT, QUITE FRANKLY, EXCUSE ME, WE'RE NOT IN THE SCHOOL DISTRICT'S BUSINESS, BUT THEY GOT TRAPPED BY THE STATE TAKING A PERCENTAGE OF WHAT THE AMOUNT WOULD GO UP.
SO THEY DIDN'T EVEN GET TO KEEP THE MONEY.
THEY WERE GONNA COLLECT 11 MILLION.
THEY STATE WHICHEVER TO RECAPTURE, THEY WERE GONNA COLLECT 11 MILLION MORE AND ONLY KEEP TWO AND A HALF OR SOMETHING.
SOMETHING CRAZY BECAUSE WE RECAPTURE MORE TAX BILL.
SO WE DO WANT Y'ALL TO HAVE THE, THE DISCUSSION BECAUSE, YOU KNOW, UH, KENT DID GO THROUGH IT.
I APPRECIATE THIS IS Y'ALL'S OPTION TO GIVE US THE DIRECTION, BUT I WANT TO, I'M GONNA GO BACK TO THE AUSTIN GAP FOR JUST A MOMENT.
UM, SO WHEN WE, WHEN WE STARTED HAVING THIS DISCUSSION, ACTUALLY TWO YEARS AGO, IF NOT LONGER, BUT TWO YEARS AGO FOR SURE, ABOUT WHAT THE PROJECTED EXPENSES COULD BE USING SB TWO AS OUR GUIDE AND USING 3.334 AS ANOTHER RESTRICTION ON US, UM, WE IDENTIFIED THAT IF YOU USE THE 3.5 NUMBER, THERE WAS GOING TO BE THIS GAP IN 20 29, 20, 20 30.
BUT IT CU IT'S CUMULATIVE, RIGHT? IT STARTS TO BUILD ON ITSELF AS YOU GO THROUGH EACH YEAR.
[02:20:01]
OF OUR BUDGET IS IN PERSONNEL COSTS.UH, THE BALANCE OF THAT BUDGET, YOU KNOW, IS FOR THE CAPITAL, IT'S FOR THE PROGRAMS AND FOR THE SERVICES.
RIGHT? AND SO IF WE ARE GOING TO MANAGE AND LEAD OUR WAY THROUGH THIS, WE IDENTIFY THAT IT'S GOING TO HAVE TO COME WITH REDUCED PERSONNEL OVER TIME.
AND WE WENT THROUGH THE STRATEGIES OF HOW WE'RE GOING TO DO THAT.
WE ARE PROVIDING YOU DATA ALONG THE WAY ABOUT WHY THESE PROGRAMS AREN'T SUPPORTABLE.
THAT DOESN'T MEAN YOU CAN'T CHOOSE TO STILL SAY THAT WE'RE GOING TO FUND THEM, BUT YOU HAVE PLACED A RESPONSIBILITY ON US TO BE FIDUCIARY AND BE ABLE TO SAY THAT WE ARE NOT GONNA HAVE THAT THING.
SO THIS EVENING, JUST DOING SOME QUICK MATH, UH, FROM EIGHT TO 10 ON AVERAGE, THAT'S 22 PEOPLE A NIGHT.
THAT'S BASICALLY SIX KIDS A DAY MM-HMM
SO WHEN Y'ALL ARE STARTING TO THINK ABOUT HOW YOU'RE GOING TO PRIORITIZE, YOU HAVE GOT TO GIVE US SOME DIRECTION BECAUSE WE CAN COME TO YOU AND PROVIDE YOU THE DATA.
AND, AND AGAIN, IT'S YOUR CHOICE FROM HOW YOU WANT TO, UH, HAVE THESE THINGS DONE.
BUT WE HAVE THE RESPONSIBILITY TO BRING THAT TO YOU AND BE ABLE TO SAY, IN ORDER TO CLOSE THAT GAP, AS WE GET VACANCIES POSITIONS, WE NEED TO BE ABLE TO LOOK AT THE SERVICES AND THE PROGRAMS THAT THIS COMMUNITY WANTS US TO PROVIDE.
ARE THEY ECONOMICAL FOR US TO PROVIDE THAT? AND I'LL GIVE YOU ANOTHER EXAMPLE.
IN RECREATION, THEY CONSTANTLY, AT THE CORE ARE EVALUATING THEIR PROGRAMS. AND PROGRAMS AREN'T REPEATED BECAUSE THEIR NUMBERS ARE SO LOW, OR THEIR INSTRUCTORS MAY NOT BE, YOU KNOW, UP TO THE PAR THAT THEY NEED.
SO THERE IS CONSTANT MOVEMENT IN THE PROGRAMS AT THE CORE ALREADY AS FAR AS WHAT PROGRAMS ARE BEING OFFERED.
AND WE'RE DOING THAT ACROSS THE BOARD IN ALL OF THOSE THAT ARE SUPPORTED BY PROPERTY TAX AND SALES TAX.
AS FAR AS THIS PARTICULAR ISSUE, SO WE STARTED THIS DISCUSSION A COUPLE OF YEARS AGO.
WE TALKED ABOUT IT IN JANUARY, FEBRUARY, WE TALKED ABOUT IT AGAIN IN FEBRUARY.
AS FAR AS THE DIRECTION IS CONCERNED, THAT'S HOW WE, THE BUDGET THAT WE GO FORWARD WITH, UM, TO THE POINT, THIS IS THE TIME FOR Y'ALL TO HAVE THE DISCUSSION, BUT YOU, YOU HAVE TO, IN MY, FROM MY PERSPECTIVE, FROM THE ORGANIZATION STANDPOINT, YOU ASK FOR DATA, WE LOOK AT THE SERVICE PROGRAMS, WE SEE WHICH ONES ARE ECONOMICAL, WHICH ONES HAVE THE RETURN ON INVESTMENT, AND THOSE TYPES OF THINGS.
AT THE END OF THE DAY, LET'S JUST SAY THAT YOU WERE TO SAY, THIS EVENING, I'M TALKING ABOUT COLLECTIVELY YOU RAISE YOUR HANDS FOR, IF YOU DO, UH, IT'S COLLECTIVELY THAT WE'RE GOING TO NOT CLOSE THE CORE, BECAUSE RIGHT NOW WE HAVE IT, THE CORE CLOSING AT EIGHT O'CLOCK MM-HMM
AND WE'RE GONNA, UH, CLOSE DOWN RIGHT NOW, THIS IS AFTER OCTOBER 1ST.
UM, BUT IF YOU TELL US THE HOLD UP THE HAND THAT WE'RE GONNA NEED TO DO THIS BETWEEN NOW AND THE NEXT TIME WE PRESENT THE BUDGET, IT'S GONNA LOOK A LITTLE BIT DIFFERENT.
BECAUSE WE ARE PRESUMING THAT WE'RE GOING IN A DIRECTION TO REDUCE THE AUSTIN GAP, SO THAT IN 20 29, 20 30, YOU AREN'T FACED WITH AN UNREALIZED OR A INABILITY, INABILITY TO CLOSE THAT GAP AT ALL.
SO EVERY YEAR WE ARE REDUCING THE AMOUNT THAT GAP, THE SIZE OF THAT GAP.
SO IT'S JUST REALLY IMPORTANT FOR US TO HEAR FROM YOU, RIGHT.
IN TERMS OF WHAT, WHAT 'CAUSE WE'RE GONNA BE BRINGING TO YOU BETWEEN NOW AND 2030, WE'RE GONNA BRING TO YOU SERVICE CHANGES.
SO THIS IS NOT NEW, AND THESE ARE SERVICE CHANGES WE THINK THAT ARE SUSTAINABLE.
UM, SO I, I DON'T KNOW HOW ELSE TO DELIVER THAT MESSAGE FOR THE WAY THAT YOUR LEADERSHIP HELPS US DEVELOP THE BUDGET.
UM, YOU KNOW, IT'S JUST, AND I I HAVE A FEAR AFTER LAST SUMMER WITH WHAT THE LEGISLATURE DID THAT THEY'RE GETTING READY TO SLAM US ON THE EXPENDITURE SIDE, AND THAT'S GONNA BE REALLY DIFFICULT.
AT THAT POINT, BECAUSE THEY'RE NOT KEEPING UP WITH INFLATION.
WE HAVE BEEN PROVIDING, YOU KNOW, THE LAST TWO YEARS WE'VE PROVIDED BUDGETS THAT THE INCREASES IN BUDGET WERE LESS THAN INFLATION BOTH YEARS.
UM, AND WE ARE MAKING THE GAP SMALLER.
SO I JUST, I JUST NEED YOU TO UNDERSTAND THAT, AND, AND AGAIN, AT THE END OF THE DAY, YOU ARE MAKING THAT DECISION.
SO WE ARE JUST BRINGING THE RECOMMENDATION TO YOU.
AND IF THE STANDARD, THAT'S WHERE YOU'VE GOTTA HELP US.
IF THE STANDARD IS, YOU KNOW, WELL SIX PEOPLE A DAY, THAT'S A SERVICE THAT WE WANT TO HAVE AVAILABLE
[02:25:01]
IT, AND IT PROVIDES A COST, THAT MEANS IT REQUIRES BAND POWER.OR AT THE 22 ON AVERAGE PER NIGHT, THAT WHEN THE THING, WHEN THE FLOOR IS OPEN, THAT HAS MORE VALUE THAN THE SAVINGS.
THAT'S WHAT YOU'VE GOT TO EXPRESS.
IF YOU, IF YOU'RE NOT EXPRESSING THAT TO US, AND I REMEMBER, YOU KNOW, KNOW WHEN RAMESH FIRST GOT ON THE BOARD AND YOU KIND OF, YOU KNOW, YOU KIND OF GOT, I CAN'T DO A SHOTGUN, I CAN'T, I CAN'T IDENTIFY AT RANDOM.
WELL, I'LL GO PULL THIS, GO PULL THIS, GO PULL THIS, GO PULL THIS, BECAUSE I DON'T KNOW WHAT YOUR PRIORITIES ARE.
I'M SORRY, I GOT PREACHY, I PRAY.
UH, JUST A CLARIFICATION, ARE WE STILL ON AGENDA ITEM SIX OR SEVEN? WE ARE MOVING ON TO SEVENTH.
UM, CAN I, CAN I MAKE A QUICK COMMENT LOOK.
SO I'M GONNA ASK, I WANT TO RESPOND TO MIKE.
THANK YOU FOR BRINGING THAT UP.
I THINK IT'S VERY IMPORTANT THAT YOU BROUGHT IT UP.
SO, LIKE I SAID, I WANT TO CONTINUE TO OPERATE THE CALL FROM UNTIL 10 O'CLOCK.
AND HOW DO I COMPENSATE THAT? RIGHT? THAT WAS YOUR QUESTION.
BECAUSE IF YOU REDUCE IN ONE SECTION, ANOTHER SECTION IS, I WILL LOOK AT MY OWN BUDGET, MAYOR AND COUNCIL BUDGET.
WE ARE ADDING LAW OR SERVICE ORGANIZATIONS AND FUNDING IS INCREASING.
THAT'S COMING FROM THE GENERAL FUND.
THAT'S WHERE THE SAVINGS COMES FROM TO COMPENSATE FOR THE PEOPLE WHO WANT TO USE THE CORE UNTIL 10 O'CLOCK.
THAT'S MY COUNTER FOR THAT POINT.
BECAUSE THAT'S THE KIND OF DISCUSSION THAT OUGHT TO BE HAD.
'CAUSE THAT STARTS TO SET UP SOME OF YOUR PRIORITIES.
UM, SO JUST REAL QUICK, I'LL MAKE IT REAL QUICK.
I'M JUST PICKING UP ON WHAT YOU SAID AND WHAT YOU SAID.
YOU KNOW, AT THE END OF THE DAY, IF YOU EVALUATE EACH AMENITY WE OFFER AS A STANDALONE PROFIT CENTER, THEN I JUST DON'T THINK WE CAN DO THAT BECAUSE WE'RE NOT GOING TO CHARGE THE MEMBERS OF THE SENIOR CENTER A MEMBERSHIP FEE THAT WOULD BREAK EVEN WITH OUR TOTAL OPERATIONAL COST TO THE SENIOR CENTER.
AND THOSE RESIDENTS OF CAPELLE WOULD'VE EVERY RIGHT TO SAY, WELL, I'M ALREADY PAYING THAT FEE IN THE FORM OF MY PROPERTY TAX.
UH, AND THE PEOPLE THAT USE THE PARK OF WHICH I'M ONE, DON'T PAY ANY MEMBERSHIP FEE, I JUST GO WALK IN THE PARK.
UM, AND I THINK, AT LEAST IN MY EXPERIENCE, YOU KNOW, ANY BUSINESS, ANY ORGANIZATION THAT HAS PAID EMPLOYEES, 50 TO 60% ALMOST INVARIABLY IS GONNA BE BENNY AND COMP YOUR COMP AND BENNY FOR YOUR EMPLOYEES.
SO, YOU KNOW, THE, THE SERVICE ORGANIZATIONS, I GUESS APPROXIMATELY A COUPLE HUNDRED THOUSAND DOLLARS OF THAT IS, WAS ALREADY IN THE GENERAL FUND.
SO THE $601,000 SERVICE ORGANIZATION EXPENDITURE IS A LITTLE, A LITTLE DIFFERENT, ONLY BECAUSE IT'S NOT REALLY $601,000.
IT, IT, WE'RE JUST MOVING THE MONEY FOR THE FARMERS, UH, MARKET AND THE COMMUNITY GARDENS THAT WAS IN THE GENERAL FUND OVER NOW TO SERVICE ORGANIZATION BECAUSE THAT'S HOW THEY'RE GONNA BE TREATED.
UM, SO I, I, I THINK THE POINT, THE POINT TO ME THAT I WANTED TO MAKE IS IF, IF AS WE'RE CONFRONTED WITH THIS AUSTIN GAP AND THE EROSION OF, YOU KNOW, WHAT THE DOLLARS WE USE TO BUY THE SERVICES AND EVERYTHING THAT THE CITY UTILIZES THE ROAD IN VALUE YEAR TO YEAR THROUGH INFLATION AND BUY US LESS FOR THE SAME AMOUNT OF DOLLARS, THEN REALLY THE ONLY WAY WE'RE GONNA MAKE ANY MEANINGFUL CUTS IS ON THE STAFF SIDE.
I MEAN, THAT'S, THAT'S WHERE 60% OF OUR BUDGET RESIDES.
YOU KNOW, IF YOU LOOK AT THE NUMBERS THAT WE RECEIVED ON THE SERVICE ORGANIZATIONS, WE'RE MAKING A GAIN.
IF WE WERE TO ELIMINATE ALL THE SERVICE ORGANIZATIONS SPENDING ALL 601,000 IN TOTAL, YOU'RE LOOKING AT 10 THOUSANDTHS OF A CENT IN SAVINGS.
SO IT'S NOT A MEANINGFUL, IT'S NOT A MEANINGFUL EFFORT IN MY VIEW TO SAY THAT THAT'S HOW WE'RE GOING TO CONFRONT THE CHALLENGES THAT WE HAVE NOW.
YOU KNOW, THE STAFF, IN MY VIEW, HAS ALREADY BEEN INCREDIBLY DILIGENT IN NOT FILLING SPOTS THAT HAVE EMPTIED AND, AND, AND KIND OF GAINING THROUGH ATTRITION THAT WAY.
[02:30:01]
ROLES INTO, YOU KNOW, WE'RE NOW THIS ONE PERSON'S DOING THREE JOBS OR PORT PARTS OF THREE JOBS WHEN BEFORE SHE WAS JUST DOING ONE JOB.AND THEY'VE BEEN DOING A LOT OF THAT ALREADY TO KIND OF MITIGATE THE, THE STAFF REDUCTION.
BUT IF, IF WE CAN'T CUT TWO HOURS OUT OF THE CORE DAY, THEN WE'RE GONNA HAVE A VERY DIFFICULT TIME LOOKING AT, AT THE KIND OF GAP THAT WE'RE GONNA SEE IN JUST FOUR YEARS.
SO, THAT I, I AGREE WITH MIKE.
I THINK, YOU KNOW, WE HAVE TO GIVE A VERY HARD LOOK AT SOME OF THIS.
AND I, I REALLY VALUE STAFF'S WILLINGNESS OVER THE LAST, I THINK, TWO OR THREE YEARS FROM WHAT I'VE OBSERVED, TO ALREADY START THAT CONSOLIDATION, TO START THAT MITIGATION, TO TRY TO START SAVING THOSE FUNDS IN ADVANCE.
THIS IS ONE OF THE MOST FORWARD LOOKING ORGANIZATIONS I'VE EVER BEEN ASSOCIATED WITH.
AND I, I, I'M SO IMPRESSED BY THAT.
UM, BUT, YOU KNOW, THAT'S, THAT'S WHERE IT'S GOTTA COME IF WE'RE REALLY GONNA CUT, YOU KNOW, ANY KIND OF SERIOUS, AND, AND WHO KNOWS, WE MAY GO FROM THE AUSTIN GAP TO THE AUSTIN DISASTER AFTER THIS NEXT SESSION, BUT, UM, AS THINGS STAND TODAY, I, I THINK STAFF'S BEEN INCREDIBLY RESPONSIVE AND, AND, AND FORWARD LOOKING AND, AND TRYING TO HEAD ALL THIS OFF.
BUT AT SOME POINT, WE'RE GONNA HAVE TO, WE'RE GONNA HAVE TO MAKE SOME MORE MEANINGFUL DECISIONS, I THINK IF WE'RE GONNA, IF WE'RE GONNA MAKE IT.
AND WE, YOU KNOW, THAT'S THE, THE RESPONSIBILITY IS ON US TO SHARE WITH YOU WHEN THESE THINGS ARE COMING UP.
AND, AND YOU HEARD IT MENTIONED EARLIER ABOUT THE ORGANIZATIONAL CHANGE MANAGEMENT.
IT'S VERY IMPORTANT TO US KNOWING FULL WELL THAT YOU STILL HAVE TIME TO CONSIDER THIS DECISION OR ANY PARTICULAR DECISION.
UM, AND SOMETIMES WE FIND OUT, I'M, YOU KNOW, I'M GOING TO LAY IT OUT THERE.
SOMETIMES WE FIND OUT, OH, WE MADE A CHANGE.
NOT ALL OF US ARE ON THE SAME PAGE.
AND, UM, AND LET'S, LET'S BACK UP FOR JUST A MOMENT AND LET'S GO THROUGH THAT.
AND, UH, SO ONE OF THE THINGS THAT YOU WILL PROBABLY HEAR IN, UH, NEXT YEAR, PROBABLY IN JANUARY, WE'RE PROBABLY GONNA TALK ABOUT THE LIBRARY.
UH, BECAUSE THE LIBRARY HAS THE SAME KIND OF ISSUES AS FAR AS UTILIZATION.
WHAT ARE PEAK HOURS, WHAT ARE OPTIMAL HOURS, WHAT ARE STAFFING AND THOSE TYPES OF THINGS.
AND, UM, YOU KIND OF GOT CAUGHT IN THAT A LITTLE BIT.
UM, AND, AND SO IT'S, IT'S A COMBINATION.
SO I DON'T WANT FOLKS WALKING OUT OF HERE.
THIS IS REALLY IMPORTANT FOR THE TEAM AND THE ORGANIZATION.
WE, WE ARE NOT IN A POSITION, OUR DRIVE IS NOT TO CUT PEOPLE.
WE'RE NOT BEING SUCCESSFUL IF THAT'S OUR SOLUTION.
OUR SOLUTION IS THAT WE ARE WORKING VERY HARD TO HOW TO BECOME MORE EFFECTIVE, MORE EFFICIENT IN WHAT WE DO.
AND WHEN AN OPENING COMES UP TO SEE HOW THAT OPENING, DOES IT ABSOLUTELY HAVE TO BE FILLED OR ARE THERE OTHER WAYS TO APPROACH IT? OR IF WE DON'T, I MEAN, THESE ARE THE QUESTIONS THAT I, WE HAVE A PLAYBOOK, RIGHT? AND IN THIS PLAYBOOK, THERE'S A SERIES OF QUESTIONS THAT PEOPLE HAVE TO GO THROUGH TO BE ABLE TO SAY, IS THIS POSITION, YOU KNOW, SO CRITICAL THAT I GOTTA FILL IT? OR IS THERE ANOTHER WAY TO APPROACH IT? IS THERE A SERVICE OR A PROGRAM? HOW'S IT, WHAT'S ITS RETURN? OR WHAT'S, WHAT'S IT COSTING US? WHAT'S THE UTILIZATION? BECAUSE WE LOVE COPPEL.
YOU KNOW, THE SURVEYS CAME BACK AND EVERYTHING ALONG THOSE LINES, WE SAY A YES A LOT MM-HMM
UH, AND IN A, THROUGH THE BUDGET PROCESS THAT GUIDES US IN THE YESES, BUT IT WILL ALSO START GUIDING US IN THE NOS.
RIGHT? AND, UH, I I, I'LL USE THE TERM THAT, UH, CLAY USED TO USE, HE KNOW HE LIKES TO HAVE EVERYBODY'S FINGERPRINTS ON THE KNIFE, RIGHT? SO WE'RE ALL IN THIS TOGETHER.
THIS WAS NOT SOMETHING YOU CREATED.
UM, BUT WE BELIEVED THAT WE PROVIDED YOU THE FLEXIBILITY TO BE ABLE TO ALLOW YOU TO THINK THROUGH, GIVE IT REAL SERIOUS THOUGHT, AND NOT HAVE A WHO REACTION RIGHT.
RIGHT? SO YOU'RE GONNA HEAR THINGS FOR THE FIRST TIME, LIKE TONIGHT, TONIGHT'S THE FIRST TIME YOU HEARD ABOUT THE CORE.
THERE'S ALWAYS GONNA BE THE FIRST TIME.
BUT THERE'S, YOU CAN DIGEST IT AND YOU CAN THINK ABOUT IT.
AND, UM, AND WE HAVE THE ABILITY TO ADJUST ACCORDINGLY, BUT WE, WE NEED THAT INPUT.
I FEEL LIKE I'VE TALKED TOO MUCH.
UH, I, I THINK YOU, YOUR, YOUR SUMMARY WAS PERFECT.
IT WAS PASSIONATE AND, UH, INFORMATIVE.
I APPRECIATE WHAT, WHAT YOU SAID.
UM, IN MY MIND, UH, YOU KNOW, STAFF BEING THE BIGGEST CHUNK OF, UH,
[02:35:01]
EXPENSE, UH, WE, WE ARE IN THE INDUSTRY OF, WE ARE IN A SERVICE INDUSTRY.EVERY PERSON THAT WE CUT IS A SERVICE.
SO, SO IT IS NOT JUST, UH, YOU KNOW, REMOVING STAFF.
UH, IT IS WHAT IT MEANS IS WE, WE HAVE TO MAKE THOSE DECISIONS OF WHAT SERVICE ARE WE GOING TO CUT.
UH, SO, YOU KNOW, AS I MENTIONED THIS, UM, LAST WEEK AS WELL, UH, WE HAVE TO BE MORE CAREFUL ABOUT THE NEW EXPENSES THAT WE APPROVE.
UM, SO, YOU KNOW, TODAY I'M PROBABLY, YOU KNOW, IN THE NEXT AGENDA ITEM, I'M PROBABLY GOING, I, I'M DEFINITELY GOING TO RECOMMEND THAT WE DON'T APPROVE ALL OF THE SERVICE, UH, ORGANIZATION FUNDING REQUESTS.
UM, I, IF I HAVE TO CHOOSE, I WOULD CHOOSE SUPPORTING THE LONGER CORE HOURS AND, AND, UH, THE NURSERY THERE.
UM, AND THEN, YOU KNOW, FIND A WAY TO, TO, TO, YOU KNOW, LIKE WE JUST SAID, FIND A WAY TO, UM, CUT SOMEWHERE ELSE MAYBE IN THE SERVICE ORGANIZATION.
UM, DEFINITELY APPRECIATE EVERYONE'S, UH, THOUGHTS.
I, UM, THE QUESTION, UM, WHEN WE TALKED ABOUT SOME OF THESE CUTS COMING THROUGH ATTRITION, AND IS THE, THE, SO I'M ASSUMING THAT THE, UM, THE REDUCTION IN CORE HOURS, BASED ON WHAT YOU SAID WAS STAFF WON'T STAY AS LATE, RIGHT? SO THEY, YOU KNOW, WE'VE GOT HOURLY PEOPLE THAT WILL CLOCK OUT EARLIER AND WE REALIZE A SAVINGS THERE.
AND THEN IN THE, YOU KNOW, IN THE, IN THE SUNSHINE ROOM, IS THAT A STAFF OR A POSITION THAT IS BEING ELIMINATED? OR IS THAT PERSON, IS THAT POSITION EMPTY RIGHT NOW? WHAT DOES THAT LOOK LIKE? IT'S NOT A, I WOULD SAY IT'S NOT A ONE FOR ONE POSITION.
LIKE WE, IT'S, IT'S KIND OF THE CUMULATIVE PROGRAMMING THAT LEADS TO THAT POSITION BEING ABLE TO NOT BE FILLED.
DOES THAT MAKE SENSE? WE PROVIDE THE SUNSHINE ROOM RIGHT NOW.
SO IT'S BEING PROVIDED THE SERVICE IS BEING PROVIDED.
SO THERE'S MANPOWER ASSOCIATED WITH THAT.
BUT BY NOT HAVING IT DOESN'T MEAN THAT PARTICULAR PERSON IS THE ONE.
I WASN'T SURE IF WE WERE IDENTIFYING.
YEAH, THAT'S NOT, THAT'S NOT HOW, THAT'S WHY I WAS SAYING WE TAKE A LOOK AT THE HOLE.
AND THAT'S WHAT, I'M JUST TRYING TO UNDERSTAND WHAT MAKES UP THAT, THAT ELEMENT OF THAT.
AND THAT'S WHAT A $35,000 EXPENSE, RIGHT? IS THAT THE YEAH.
WHICH, WHICH ONE? THE OH, FOR THE SUNSHINE ROOM, IS THAT RIGHT? SO, SO THERE'S THAT.
UM, I MEAN, JUST, JUST FOR ME PERSONALLY, UM, YOU KNOW, I, I DON'T, I WOULD LOVE TO SEE MAYBE, UH, YOU KNOW, IS THERE SOME KIND OF STUDY ON, YOU KNOW, ARE THE FEES AT THE CORE APPROPRIATE, YOU KNOW, THAT WE'RE CURRENTLY CHARGING TO MAKE UP FOR THOSE HOURS? UM, IS THERE THE POTENTIAL TO TAP INTO CRDC FUNDING TO, UM, UH, TO MAYBE MOVE POSITIONS OVER INTO THAT, UH, YOU KNOW, OR MOVE POSITIONS INTO THAT TO WHERE WE CAN PRESERVE THAT? I WOULD, I WOULD LIKE, WITH THE UNDERSTANDING THAT I KNOW THINGS ARE TIGHTER AND WE HAVE TO LOOK AT THINGS, BUT WE ALSO HAVE OTHER PO YOU KNOW, OTHER THINGS THAT WE LOOK AT ON AN ANNUAL BASIS, LIKE, SUCH AS OUR SROS, WE LOOK AT THAT EVERY YEAR.
WE LOOK AND WE SAY, DO WE STILL WANT TO DO THIS? IS THAT SOMETHING, IS THAT SOMETHING THAT, WITH THE UNDERSTANDING THAT WE ARE FACING PRESSURES, THAT THAT IS, YOU KNOW, UNDERSTANDING MAYBE THE SUNSHINE ROOM IS KIND OF ON THE BLOCK AND WE NEED TO LOOK AT THAT AND MAYBE GIVE IT ANOTHER YEAR TO SEE IF PEOPLE ARE GONNA UTILIZE THAT.
AND IF THEY DON'T, WELL THEY, YOU KNOW, THEN IT'S SPOKEN.
THEN I WOULD RATHER TAKE A ONE YEAR APPROACH TO LOOK AT THAT AND SEE, YOU KNOW, LIKE, I MEAN, DO PEOPLE KNOW THAT, YOU KNOW, IT'S, IT'S UNDERUTILIZED.
MAYBE THEY WILL, MAYBE THEY WILL VALUE IT MORE IF THEY KNOW THAT IT'S ON THE CHOPPING BLOCK, JUST KIND OF THINKING OUT LOUD, YOU KNOW? SO MAYBE THAT WOULD, YOU KNOW, THAT WOULD CHANGE BEHAVIORS.
BUT I DUNNO, I JUST, I FEEL LIKE IT IS MY UNDERSTANDING WITH THE UPCOMING BUDGET, AND IT'S STARTING OCTOBER 1ST, JUST, IT SEEMS LIKE A BIG MEASURE TO, TO CHANGE THAT, WHICH IS A REALLY IMPORTANT PART OF, OF WHAT WE DO HERE IN COPPEL.
THE CORE IS JUST A GREAT MEETING PLACE.
SO I WOULD LIKE TO SEE US TRY TO PRESERVE THAT THROUGH OTHER MEANS VERSUS CHOPPING THAT.
I'D JUST LIKE TO PRIORITIZE THAT.
SO IF YOU ARE ON ITEM NUMBER SEVEN, I WANT TO BRING UP SOMETHING ELSE ANYBODY ELSE HAS.
I LOOKED AT THE REPORT FROM YOUR PRESENTATION, A HOT TAX UNDER WHAT LINE ITEM IS THE DISCOVER CORPORAL IS FUNDED FROM SERVICES.
SO I SEE SERVICES, IT'S ABOUT, WHAT, 697,000 OUT OF 697,000.
[02:40:01]
SPENDING ON 250, OBVIOUSLY FROM THIS 2 88 2 2 88 SERVICE.THE SERVICE ORGS DISCOVER
I'M SAYING THAT THERE ARE SERVICE ORGS THAT ARE FUNDED FROM HOT TECH.
SO PART OF THAT IS, SO THE REST OF IT IS LIKE THE RESIDENT COMPANIES.
YOU HAVE
SO IT'S, IT'S THE RESIDENT COMPANIES.
IT'S IN THE SERVICE OR THE ORGANIZATIONS THAT SUPPORT THE ARTS CENTER.
RIGHT? 275,000 OF IT IS RELATED TO THE SERVICE ORGS THAT WOULD BE PAID OUT OF POT THAT YOU'RE GONNA DISCUSS.
AND THEN 288,000 IS THE DISCOVER.
SO THAT GETS YOU TO ABOUT 5 63.
UM, AND THEN WE ALSO, UM, PAY FOR ADVERTISING FOR THE ART CENTER OUT OF THERE.
I THINK THAT'S 80, SOME CLOSE TO 90,000 THAT WE'RE BUDGETING FOR THAT, THAT TWO TO 6 53 VERY CLOSE.
WHERE DO WE ADD THAT? SO THE PEOPLE CAN SEE WE ARE SPENDING MONEY OUT OF THAT.
I MEAN, I DON'T SEE ANYWHERE IN THE BUDGET SHOWING DISCOVER COP IS SPENDING 2 75 OR 2 88.
UM, SAY AGAIN BECAUSE I, I COULDN'T HEAR YOU.
SO IN THE BUDGET, IT'S NOWHERE.
IT SHOWS THAT WE ARE SPENDING MONEY ON THAT PARTICULAR PROJECT.
SO WE CAN ADD IT IN NOTES ON THE TOP.
RECALL THAT, I MEAN, THAT'S, THAT'D BE THE PLACE TO ADD IT.
YOU JUST WANNA SEE THE LINE ITEMS. YEAH, ABSOLUTELY.
BREAK IT DOWN SO IT IS TRANSPARENT TO EVERYBODY.
HEY, WE ARE SPENDING MONEY ON X, Y, AND Z SO PEOPLE KNOW WHAT EXACTLY.
ARE YOU NOTING THAT, JESSICA, YOU CAN ADD THAT TO THE TOP DESCRIPTION, BUT IT ALSO INCLUDES THE DISCOVER CHAIN, DISCOVER CALLED, I KNOW WE USED TO PAY FOR THE STORAGE FOR RESIDENT COMPANIES.
ARE WE STILL PAYING? NO, BECAUSE THAT'S, WE BUILT THAT, UH, WE CALL IT THE HANGER.
AND, YOU KNOW, WE HAD THAT SPACE OUT THERE IN THE BACK.
SO THAT'S WHERE THEY MOVED EVERYTHING TO, AS FAR AS I KNOW, IF THEY'RE PAYING FOR SOMETHING, I DON'T, I'M NOT AWARE OF IT.
THE THEATER WAS CONTINUING TO PAY THAT OUT OF THEIR OWN FUNDS.
I DON'T KNOW IF THEY STILL ARE OR NOT.
I I DON'T, THAT'S IT USED TO BE UNDER COUNCIL AND MAYOR'S BUDGET.
THEY'RE NOT THAT, THAT DISAPPEARED WHEN THE HANGER GOT FINISHED.
THE HANGER GOT, THAT WAS THE TRADE OFF, RIGHT? YEAH.
HERE'S A NICE FACILITY FOR YOU AND, UH, WORKSPACE.
SO MY QUESTION FOR MIKE IS ARE THERE ANY AREAS BEFORE YOU SAY WE WANT TO REDUCE THE CORE HOURS FROM A TO 10 TO EIGHT, UH, CAN WE USE ANY OF THIS FUND FROM HOT TAX OR CRDC? I MEAN SALES TAX TO DO SIMILAR THING USING THAT, BUT I KNOW THAT'S A RESTRICTIVE, I MEAN RIGHT.
BUT ON THE CRDC, KIM, CORRECT ME IF I'M WRONG, WE STOPPED DOING THAT TRANSFER MULTIPLE YEARS AGO, RIGHT? YES.
SO, AND ALSO THE, UH, FUND BUCKETS CANNOT BE USED FOR OPERATIONAL.
THE CDC IS A LITTLE DIFFERENT.
UM, THERE WAS A TIME WHEN THE CRDC WAS TRANSFERRING INTO THE GENERAL FUND, UH, FOR CERTAIN THINGS.
UH, ESPECIALLY WHEN WE PUT ON THE ARC CENTER.
I, I, I'D HAVE TO TELL YOU THAT I'D HAVE TO GET WITH KIM TOMORROW AND JUST TAKE A LOOK AND SEE WHAT FLEXIBILITY THERE IS, RIGHT.
AND THE CI MEAN, IT'S RECREATION RELATED.
IT IS AN APPROPRIATE USE BECAUSE IT'S RECREATION RELATED.
I, I JUST DON'T KNOW WHERE THE, RIGHT OFF THE TOP OF MY HEAD, I DON'T KNOW WHAT.
SO IF THAT'S WHAT YOU'RE ASKING, I'M SAYING YOU COLLECTIVELY, UH, IF THAT'S WHAT YOU'RE ASKING US TO DO, WE'LL, WE'LL GO BACK AND LOOK AT, THAT WAS ONE REASON WE STOPPED THAT TRANSFER.
LIKE A REACTION TO THE, WELL, WHAT HAD HAPPEN, 3.3, THREE FOUR? WELL, THERE'S TWO THINGS.
[02:45:01]
UM,IT WAS ACTUALLY CALLED, UH, C FOR CRDC.
AND THE FUND BALANCE, WHEN YOU GO BACK YEARS, IT WAS, WAS HEAD BALANCE.
UH, AND THEY WERE, UH, SETTING THAT UP BECAUSE THERE WAS AN END TO THE SALES TAX, THE CRDC SALES TAX.
OH, THAT WAS LIKE 2018 OR 2019.
AND WE WENT TO THE VOTERS IN 2014, I THINK, UM, AND GOT IT EXTENDED TO 2032.
SO IT MADE THAT FUND MUTE, UH, AND THE FUND BALANCE.
AND SO IT JUST BECAME, WE, WE TRANSFERRED IT OUT TO PARKS AND RECREATION AND THOSE KIND OF THINGS.
SO THAT FUND WASN'T THERE ANYMORE.
AND WE STOPPED DOING THE TRANSFER FROM THE CRBC AND THE JOURNAL FILING BECAUSE WE WERE FUNDING MORE OUT OF THE PARKS AND EVERYTHING OVER THERE.
SO IT WOULDN'T HAVE BEEN RIGHT TO KEEP FEEDING THE FUND.
AND THE C UM, THIS IS HOW, GOING OFF OF MEMORY NOW, AND SO THIS IDEA OF USING THE CRDC, THE CRDC IS FOR OUR PARK SYSTEM, RIGHT.
AND THE CORE, AND THE WAGON WHEEL AND, AND THOSE KIND OF THINGS, IT'S ALL DESIGNATED FOR THOSE PURPOSES.
SO IT'S QUITE A LIGHT TO DO THAT.
UH, AND THE OTHER NIGHT WE WERE TALKING ABOUT, I'M JUST GONNA, THIS IS DANGEROUS.
THE, UH, WAS IT PUBLIC SAFETY? WE, UH, WE IDENTIFIED THROUGH, YEAH, THROUGH THE ANALYSIS.
THERE WAS A USE FOR, UH, IT WAS THE PUBLIC, THERE WAS A PUBLIC SAFETY FUND, THE SPECIAL REVENUE FUND THAT WE IDENTIFIED THAT WE COULD ACTUALLY START USING FOR THE SCHOOL CROSSING CARDS.
SO, BA BASED ON THE FEEDBACK, UH, Y'ALL SAID AT THE LAST PRESENTATION, UH, THE FINANCIAL STRATEGY SESSION, WHAT CAN WE USE THESE SPECIAL REVENUE FUNDS FOR? SO WE, UM, TOOK A DEEPER LOOK AT THE CHILD SAFETY, CHILD SAFETY, AND WE MOVED THE, AND YOU'RE GONNA SEE THIS BECAUSE THAT'S, UM, ONE OF THE STRATEGIES THAT, YOU KNOW, THAT WE'RE DOING IS WE MOVED THE CROSSING GUARDS OUT OF THE, UH, POLICE GENERAL FUND BUDGET AND ARE PUTTING THAT INTO CHILD SAFETY.
IT'S NOT THERE BECAUSE THAT WAS A RECOMMENDATION THAT CAME AFTER.
SO WHEN YOU, WHEN WE PROVIDE THE PROPOSED BUDGET, IT WILL INCLUDE THAT.
SO RAMESH HAS BEEN WAVING AT ME, IT'S BECAUSE MARK IS WANTING TO TALK.
SO MARK, YOU'RE ON MUTE, I BELIEVE.
BUT THAT'S HOW YOUR DIRECTION IS.
SO I, I BELIEVE IT'S IMPORTANT THAT WE LOOK AT THIS IN THE BIG PICTURE AS TO WHAT A, A CITY PROVIDES AND, UH, WHAT PRIVATE INDUSTRY CAN PROVIDE.
I IF WE'RE PAYING, UM, SO MUCH EXTRA MONEY, SO SIX PEOPLE CAN GO TO THE GYM AT, UM, AT 10 O'CLOCK AT NIGHT, MAYBE OUR, UM, OUR HOURS ARE, ARE NOT APPROPRIATE TO BE OPEN THAT LATE, AND THEY SHOULD SEEK ANOTHER ALTERNATIVE.
NOW, THE CITY PROVIDES A LIBRARY.
THERE ARE NOT, UM, REASONABLE ALTERNATIVES FOR A LIBRARY IN THE PRIVATE INDUSTRY.
SO WHEN WE START LOOKING AT, UM, THOSE KIND OF CUTS, WE'VE GOT TO KEEP THAT IN MIND.
UM, AND THE SAME GOES FOR THE, UM, THE, THE ART CENTER AND, UM, THE SENIOR CENTER THERE.
THERE'S NOT A, A PO UH, A PRIVATE INDUSTRY SENIOR CENTER WHERE WE'RE BUILDING THE COMMUNITY, WHICH IS A COM, UH, REALLY VITAL ASPECT OF WHAT THE CITY DOES.
I JUST WANTED TO THROW THAT OUT THERE.
THIS POINT ARE WE TO GO THROUGH EACH LINE APPROVING THE SERVICE ORGANIZATION? SO IT'S UP TO YOU GUYS.
I MEAN, IT, THIS IS, IT'S, THIS IS AN OPEN DISCUSSION.
IT'S HOW YOU'VE DONE, DONE SO.
BUT RAMESH HAD A QUESTION BEFORE, MORE A COMMON MAYOR.
THANK YOU FOR, UH, LETTING ME TALK.
UH, I THINK, UH, YOU USING CRDC OR ANY OTHER SOURCE TO SOLVE A TACTICAL PROBLEM FOR THIS YEAR, I'M OKAY WITH THAT, BUT WE SHOULD ALSO, UH, BE, UH, AWARE THAT THIS, THERE'S A TAKING TIME BOMB COMING DOWN.
SO I, I SEE NEXT YEAR THE AUSTIN GAP GOES TO ALMOST $5 MILLION.
[02:50:01]
TODAY, MAYBE THE NEXT RETREAT WE'LL HAVE TO GET TOGETHER AND ACTUALLY TALK ABOUT, UM, ARE WE GOING TO, ARE WILLING TO CUT SERVICES TO CLOSE THE CAB? UH, SO IT, IT'S, IT IS A PROBLEM WE HAVE TO ADDRESS.SO, SO I DON'T, I I'M, I'M GOING TO INTERJECT.
IT'S NOT IF WE WANT TO, WE'RE GONNA HAVE TO.
SO, SO WE HAVE TO DO IT, UH, WHETHER WE DO IT TODAY OR, OR, UH, IN THE NEXT RETREAT IS, IS AN OPTION.
UH, BUT I THINK WE DO HAVE TO SOLVE FOR THE LONG-TERM PROBLEM.
I THINK THAT'S THE MESSAGE THAT MIKE'S BEEN TRYING TO GET THROUGH TO US.
UM, I AGREE A HUNDRED PERCENT THAT THIS IS, YOU'VE WELL PREPARED US THAT, THAT THIS, THIS IS COMING.
BUT, YOU KNOW, MY THOUGHT WOULD BE THAT LOOK, MAYBE INSTEAD OF SAYING OPEN TILL 10, MAYBE THE COURSE STAYS OPEN TILL NINE.
MAYBE THAT GOES FROM A 24,000.
DO, AND I DON'T KNOW, I'M MAKING UP NUMBERS, BUT MAYBE THAT GOES TO $12,000, RIGHT? MAYBE INCREASING THE DUES TO THE, UH, THE COURT.
YOU KNOW, I, I DON'T, WHATEVER THAT MIGHT BE, CAN MAKE UP $12,000, UH, TO, LIKE, THAT'S THE THING IS LIKE, UNTIL WE LOOK AT IT, I DON'T WANT TO, I DON'T WANT TO REDUCE THE HOURS AND THEN COME BACK AND SAY, OKAY, WELL WE COULD DO A LITTLE, YOU KNOW, MAYBE A LITTLE ADJUSTMENT IN FEES AND THEN MAKE UP THAT REVENUE TO WHERE WE COULD STILL BE ABLE TO PROVIDE THAT AT THE HOURS.
THAT'S WHAT I'M ASKING FOR IS THAT WE LOOK AT TACTICALLY, LOOK AT ONE YEAR, HAVE AN OPPORTUNITY TO EVALUATE AND LOOK, MAYBE, MAYBE IT'S NOT WORTH IT STAYING OPEN UNTIL 10, MAYBE NINE O'CLOCK IS A, IS A, A, A BETTER SOLUTION ON THAT.
BUT I'M JUST ASKING FOR TIME FOR US TO, TO EVALUATE THAT, TO SEE IF THAT, WITH THE USE OF LOOKING AT IT FOR, FOR ONE YEAR.
I WANT TO RAISE YOUR LEVEL THOUGH, IF SIX PEOPLE A DAY ARE USING SOMETHING, IT'S IMPORTANT TO THOSE SIX PEOPLE.
I'M NOT MAKING LIGHT OF THAT, BUT SIX PEOPLE A DAY, IS THAT A SERVICE THAT WE NEED TO BE INVESTING IN? IS THAT THE SUNSHINE ROOM? THE SIX PEOPLE A DAY? YEAH.
WELL, SO, SO MAYBE THE SOLUTION IS WE DON'T, WE DON'T MAINTAIN THE SUNSHINE ROOM, BUT WE KEEP THAT OUT.
WELL, NO, I, I, WHEN I SAY RIGHT, I'M, I NO, I, I UNDERSTAND WHAT YOU'RE SAYING, BUT, BUT FORGET THE DOLLARS FOR JUST A MOMENT FOR THE SERVICES THAT WE PROVIDE.
THAT THAT'S WHAT I AM ASKING ABOUT.
BECAUSE, YOU KNOW, WE'RE NOT TALKING ABOUT IMPACTING HUNDREDS AND THOUSANDS.
WE'RE TALKING ABOUT A VERY SMALL NUMBER OF FOLKS.
AGAIN, IT'S IMPORTANT TO THEM.
I'M NOT SAYING IT'S NOT, HOW DO YOU WANT US TO APPROACH THAT? BECAUSE WE ARE GONNA BE LOOKING AT DATA, WE'RE GONNA BE LOOKING AT INFORMATION, WE'RE GONNA BE LOOKING AT THE SERVICES THAT WE'RE PROVIDING.
AND IF THERE'S SOME THRESHOLD THAT WE DON'T KNOW ABOUT BECAUSE WE HAVEN'T TALKED ABOUT IT OR YOU HAVEN'T TALKED ABOUT IT, DO WE NEED TO BE SPEND DOING DATA AND COLLECTING DATA? BECAUSE IF SIX PEOPLE CAN'T, WE CAN'T GET SIX, WE CAN'T GET THE COUNCIL TO SIGN OFF ON IMPACTING SIX PEOPLE'S LIVES.
WHAT ARE WE DOING? UNDERSTOOD.
AND UH, YOU KNOW, I WOULD SAY THAT'S WHY WE HAVE, YOU KNOW, SEVEN COUNCIL MEMBERS.
RIGHT? AND IT'S, I THINK IT'S IMPORTANT THAT WE LOOK AT THINGS THAT ARE NOT, UH, WHILE WE HAVE TO LOOK AT DATA AND WE HAVE TO LOOK AT COST AND THINGS LIKE THAT, WE ALSO HAVE TO THINK ABOUT, YOU KNOW, WHAT'S VALUABLE TO, TO BE, AND LOOK, MAYBE THE SUNSHINE ROOM ISN'T VALUABLE ENOUGH TO EVERYONE TO KEEP THAT GOING, BUT I WOULD THINK THAT THE, YOU KNOW, LOOKING AT THE HOURS OF THE COURT MIGHT TAKE A DEEPER LOOK.
SO, SO I WILL MAKE ONE COMMENT.
THEY DID A VERY, THE STAFF DID A VERY GOOD JOB OF IDENTIFYING THE LOW HANGING FRUIT.
AND THIS ISN'T EVEN LOW HANGING FRUIT.
THIS IS KIND OF HIGHER UP IN THE TREE.
WE'RE HEARING ABOUT IT THIS YEAR.
AND REGARDLESS IF THEY DECIDE WHATEVER THE DECISION IS, YOU'RE GONNA HEAR IT ABOUT IT AGAIN NEXT YEAR.
AND SO IT'S GONNA, IT'S GONNA COME BACK ON THE TABLE.
'CAUSE IT'S GONNA BE ONE OF THE ITEMS THAT IS THE, YOU KNOW, IT'S NOT DOING THE ROI, UM, WHICH IS KIND OF HARD TO PUT INTO TERMS OF CITIZEN SATISFACTION, BUT IT'S NOT GONNA BE THERE.
SO ARE WE READY TO MOVE ON TO, TO BES U'S POINT ON ITEM NUMBER SEVEN AND GO DOWN THE SERVICE ORGANIZATION'S LIST? I WOULD BE CURIOUS AS TO WHAT DIRECTION STAFF HAS BASED ON THIS CONVERSATION, IF, IF ANY, HAS CHANGED.
LIKE, I, I, I HAVEN'T HEARD, WE TALK ABOUT TENTATIVE DIRECTION, SO THERE'S NOT THAT CLARITY.
WHAT I HAVE HEARD IS ASKING US TO GO AND LOOK, SAY IF THE CRDC AS IT RELATES TO THIS PARTICULAR ITEM, WHAT THE REST OF THE STORY IS.
I DON'T KNOW, BECAUSE OF THE MANPOWER ISSUE, THERE MAY BE DOLLARS OVER HERE, BUT I'M STILL GONNA BE LOOKING AT MY MANPOWER.
I, TO YOUR POINT, IT IS A, THERE ARE TACTICS.
I MAY HAVE MONEY TO THROW AT THE PROBLEM, BUT IT, I GOTTA THINK ABOUT IT BIGGER THAN JUST
[02:55:02]
TWO HOURS AND SIX PEOPLE USING THE SUNSHINE ROOM.THAT'S, THAT'S WHAT I'VE HEARD.
I JUST WANNA MAKE SURE WE, LIKE, WE KNOW WHERE WE'RE, WE'RE GOING AFTER THIS CONVERSATION.
WAS THAT CLEAR BACK TO YOU? WHAT'S THAT? WAS THAT CLEAR BACK TO YOU? WHAT I HEARD? I DON'T THINK HE ANSWERED HIS QUESTION.
I HEARD YOU'RE GONNA GO BACK AND LOOK AT CRDC AS A POTENTIAL, AS OF RIGHT NOW, WE DON'T HAVE IT IN YOU.
I'VE BEEN ASKED TO DO THIS A LITTLE BIT OF ANALYSIS BECAUSE IT SOUNDS LIKE YOU WANT A LITTLE BIT MORE INFORMATION SO THAT YOU CAN PUT A THUMBS UP OR A THUMBS DOWN ON WHAT YOU'RE GONNA DO.
THAT WOULD, THAT THAT IS, YES, THAT'S WHAT I HEARD.
THAT'S NOT ATYPICAL FOR THIS GROUP.
YEAH, WE CAN'T MAKE UP OUR MIND, SO WE'LL WAIT.
ALRIGHT, SO LET'S, LET'S MOVE ON.
UH, DOES EVERYBODY HAVE YOUR WORKSHEET? UH, PAGES ONE AND TWO ON THE SERVICE ORGANIZATIONS? SO ALL THIS SERVICE ORGANIZATION RIGHT NOW IS COMING OUT OF THE GENERAL FUND, WHICH IS COMING OUT OF THE COUNCIL AND MAYOR'S BUDGET.
ON PAGE ONE, PAGE TWO IS COMING OUT OF HOT.
THE NEW REQUEST THAT WE HAVE, THE, OKAY.
SO LET, LET'S TRY YOUR QUESTION AGAIN.
'CAUSE MAYBE I'M MISUNDER I DIDN'T, WHAT HE ANSWERED, I DIDN'T HEAR YOU ASKING FOR.
SO IF YOU LOOK AT THE PAGE SIX THAT THEY PREPARED FOR US, IT'S A MAYOR AND COUNCIL BUDGET ON PAGE SIX.
THAT HAS ALL THE ITEMS COMING OUT OF GENERAL FUND.
YES, THAT'S WHAT I'M TALKING ABOUT.
THAT IS, AND SOME OF THOSE ARE COMING OUT OF, OF HOT AS WELL.
SO I WAS, I WAS OFF ON THIS PAGE, WHICH IS THE SERVICE ORGS.
MAYBE WE CAN IDENTIFY, WHICH, FOR EXAMPLE, ASSISTANCE LEAGUE OF COP, WHERE IS MONEY COMING FROM? DO YOU KNOW? FUND, THAT'S RIGHT, EXACTLY.
WELL, THESE ARE THE PAGE ONE IS ALL GENERAL FUND.
SO WE DID NOT REVIEW THE FIRST FIVE.
THEY DIDN'T FIT THE CRITERIA FOR A, A REVIEW.
DOES ANYBODY WANT TO HAVE ANY COMMENTS ON THE ASSISTANCE LEAD? NOT ON THE ASSISTANCE LEAD, BUT YOU MENTIONED FIRST FILE.
CAN I COMMENT ON THE FIRST FILE OR YOU GO BY ONE AT TIME? I, OKAY.
I AM, I, I I'M UP ON THE ASSISTANCE LEAD.
UM, CARSON'S VILLAGE COMMENT? YES.
UH, SO IN IN GENERAL, MAYOR, UH, FOR ALL OF THE ORGANIZATIONS THAT I'VE ASKED FOR AN INCREASE, MY APPROACH HAS BEEN SINCE WE ARE LIMITED TO 3.499% INCREASE IN OUR REVENUE COLLECTION, UH, I AM RECOMMENDING THAT THE INCREASE BE ONLY 3.499.
I UNDERSTAND I'LL BE THE MINORITY WARD, BUT THAT'S WHERE, UH, I, I WILL BE, UM, TIMING IN THAT ALL MY INCREASES WILL BE LIMITED TO 3.499% OF, UH, LAST YEAR.
LAST YEAR PLUS, UH, A 3.499 OF LAST YEAR.
SO ARE YOU, YOU'RE, I'M SAYING NO.
SAYING NO TO WHAT YOU'RE ASKING.
SO WHICH ONE IS THIS NOW? CARSON.
SO ARE WE ASKING MARK AND YES.
MARK, HOW DO YOU FEEL CARSON'S VILLAGE? I CAN'T COMMENT BECAUSE I, I DON'T HAVE THAT INFORMATION IN FRONT OF ME.
SO I'M GOING TO KEEP WITH THE WHAT THEY, I, I LOCATED LAST YEAR.
THE ONLY, UM, OH, I'M, I'M IN FAVOR.
DO WE HAVE A YES, THAT'S ONE THAT THEY ONLY ARE, THEY ONLY ARE SHOWING WHAT THEY ACTUALLY HAVE PROVIDED SERVICE TO THE CITIZENS.
SO IT'S NOT JUST A GENERAL REQUEST, IT'S IN THE, OKAY.
UH, CHILDREN'S ADVOCACY OF, UH, DENTON COUNTY, UM, PAGE AS WELL.
[03:00:01]
YES.WHAT I, I I'M RECOMMENDING A 3.5% INCREASE.
I, I'M NOT GOOD WITH WHAT THEY'RE ASKING SOMEBODY, JESSICA.
I MEAN, IT'S GONNA END UP COSTING ME ABOUT ONE 10TH OF A CENT.
SO, I MEAN, THIS IS, THESE NUMBERS DON'T IMPACT THE BUDGET ANY WAY THAT IS GONNA MAKE A DIFFERENCE.
WE GOT A, I DO HAVE THREE YESES ON THAT.
FIVE 'CAUSE OF WHO'S ON THE BOARD.
I DON'T THINK YOU NEED TO RECUSE YOURSELF OVER THIS.
I I'M GONNA RECUSE MYSELF FROM ANSWERING THAT ONE.
THIS IS THE C UH, ELL COMMUNITY GORDON CORPORATION.
THIS WAS PREVIOUSLY FUNDED OUT OF SFE.
EXPERIENCE COPPEL FARMERS MARKET ASSOCIATION.
YOUR HONOR, UH, UM, THE COCKTAIL HUMANE SOCIETY, I'M IN FAVOR OF THAT.
I, AS MUCH AS I ALLOW, UH, WHAT THEY'RE DOING, I, I WANT TO GIVE THEM AN INITIAL GRANT OF 5,000.
I MEAN, I, I'M IN FAVOR BECAUSE THEY'RE ACTUALLY SAVING US FROM HIRING MORE ANIMAL CONTROL PEOPLE.
THE VOLUNTEER WORK THEY DO TO GET, YOU KNOW, TAKE CARE OF SOME OF THE STRAY ANIMALS AND THAT SORT OF THING.
WE EITHER HAVE THE STRAY ANIMALS RUNNING AROUND TOWN OR WE BE HIRING PEOPLE TO DO IT.
SO I THINK WE'RE GETTING A BARGAIN FOR THE SERVICE THEY'RE PROVIDING FOR WHAT WE'RE, WHAT WE'RE AGREEING TO GIVE THEM.
I'M FINE WITH THE AMOUNT THEY DID IN THEIR PRESENTATION.
THEY DID MENTION THERE WAS FOUR OR $5,000 THEY WERE GOING TO USE TO REFRESH SOME EQUIPMENT OR SOMETHING LIKE THAT.
SO I COULD BE TALKING TO LIKE AN, YOU KNOW, AN EIGHT OR $9,000 ONGOING TYPE REQUEST AND THEN A 5,001 TIME GRANT AND EVERYTHING.
UM, BECAUSE IT WAS, IT DID SOUND LIKE THEY WERE USING SOME OF THE MONEY FOR A NEW TENANT OR, YOU KNOW, I THINK THEY'RE ALSO USING SOME OF THE PERSONAL FUNDS TOO.
SO, SO, BUT I MEAN, THE OLD PLAN, I'M OKAY WITH 30,000.
HEY, WE'LL SEE WHERE THEY COME BACK AT US WITH NEXT YEAR.
MARK, WHEN YOU GET THE, WHEN YOU GET THE, THE, UH, FILE BY EMAIL, LET ME KNOW, PLEASE.
STILL WAITING FOR IT TO COME THROUGH.
DID YOU SAY, AND REMEMBER IT TRAVELS AT THE SPEED OF LIGHT
COPPEL, ISD EDUCATION FOUNDATION.
I'M ALSO GONNA RECUSE MYSELF FROM THIS ONE.
I'M, I WOULD SAY 10,000 TO START WITH.
THIS ONE WAS HARD FOR ME, MAYOR, YOU KNOW, AS MUCH I APPRECIATE WHAT THEY'RE DOING TO ME.
UH, THEY DID NOT FIT THE GUIDELINES OF, OF, UH, WHAT WE HAD AGREED ON AS A COUNCIL FOR, FOR NEW REQUEST.
SO, BECAUSE THEY ASKED, I'M OKAY WITH THE 10,000 SO THAT THEY USE THIS TO FIND WAYS TO MULTIPLY OUR INITIAL DONATION.
SO WE HAVE A NEW REQUEST FROM THE COPPEL ISD EDUCATION FOUNDATION.
THIS IS THEIR FIRST REQUEST, UH, COMPLETELY NEW.
UH, I'VE GOT A SPLIT VOTE HERE.
ONE OPTION IS TO OFFER THEM A $10,000 A YEAR GRANT, AND THE OTHER IS TO GRANT THE 61,000.
WHERE WOULD YOU STAND? THAT IS, I I THINK WE START OFF WITH 10, I MEAN ALRIGHT.
UM, COPPEL SPECIAL OLYMPICS, 10,000 IS FINE.
THEY ACTUALLY WENT DOWN BY THE WAY.
[03:05:01]
NHMR. THE OLD N-N-H-M-R.UM, IT WENT FROM 1800 TO 3000.
MARK, YOU GOOD? OH, I'M SORRY YOU CAN'T HEAR.
UM, MARK, WAS THAT YOUR FIRST TIME REQUEST? UH, NO.
THE, THEY PRESENTED, THEY LAST PRESENTED IN 2024.
THEY LAST PRESENTED ORALLY IN 2024.
WE HAD THEM LAST YEAR AS A $3,000 RECIPIENT THIS YEAR.
THEY WENT UP, THEIR REQUEST WENT UP TO 5,000.
UH, METRO CREST SERVICES 196,000.
THAT'S A 0% INCREASE FROM LAST YEAR.
THIS WAS A $5,000 INCREASE FROM LAST YEAR.
HOW DO YOU STAND WOVEN? UM, I KNOW THEY'VE BEEN DEEPLY AFFECTED BY, UH, SOME OF THE SEVERE CUTS THAT HAVE BEEN MADE, UM, GRANT WISE.
SO I'M, I'M LIKELY TO STAY, UH, STAY WITH THE 20,000 THAT THEY'RE ASKING 20,000.
WE GOT, AND THEN, UH, LAST ON THE SERVICE OR THE GENERAL FUND IS THE YMCA, THEIR REQUEST WAS FROM 20,000.
UM, LET'S GO OVER TO THE HOT TAX FUNDS BALLET ENSEMBLE OF TEXAS 20,000.
SO THIS IS ALL FUNDED BY SALES TAX? THIS IS HOT.
YOU GOOD, MARK? OKAY, WE'RE GOOD.
COPPEL ARTS CENTER FOUNDATION.
THAT WAS A $10,000 REQUEST OVER LAST YEAR.
YEAH, MAYBE A LITTLE BIT INCREASE 5%.
UM, I'M IN AGREEMENT WITH THEIR REQUEST.
I MEAN, WE'RE, WE'RE NOT RUNNING LOW ON HOT TAX FUNDS, ARE WE OKAY, DON, JIM, I'M AGREE WITH THEIR REQUEST.
UM, THE COPPEL ARTS FOUNDATION, 25,200 COP ARTS COUNCIL, SIR, WHAT DID I SAY? FOUNDATION.
UM, THIS WAS A $25,000 REQUEST AND AS YOU RECALL, THIS WAS A $12,000 ONE TIME FOR THEIR ANNIVERSARY SEASON FOR PUBLICITY PRIMARILY.
OTHERWISE, IT WAS A NO CHANGE FROM LAST YEAR IN THAT.
I WOULD DO THAT ONE AS A ONE TIME GIFT.
SPLIT 'EM, I MEAN, EXPLAIN IT RIGHT.
13 AND THEN TWELVES FOR THE, THE ONE TIME THING, 40TH ANNIVERSARY OR WHATEVER.
AND THAT WAY IT, THE RECURRING NUMBER IS THE 13 ON THAT STRUCTURE.
THAT WAY IT DOESN'T GET RECORDED HERE AS A $25,000 REQUEST FOR NEXT YEAR.
[03:10:01]
KAEL COMMUNITY ORCHESTRA, 10,500, NO CHANGE FROM LAST YEAR.CAPEL COMMUNITY THEATER, 15,000, THAT WAS A 25% INCREASE.
KA HISTORICAL MUSEUM, 135,000.
THIS IS ONE WHERE I, UH, YOU KNOW, BASED ON THE PRESENTATION THAT THEY MADE, THEY ONLY USED 90,000, UH, LAST YEAR IN THEIR BUDGET PRESENTATION WAS FOR 90,000.
SO I WENT WITH 90,000, WHICH IS A DECREASE FROM WHAT THEY'VE ASKED.
I, I THINK, UH, YOU KNOW, THEY CAME TO US INITIALLY, THEY JUST NEED A SEAT IN MONEY.
THIS IS THE FOURTH OR FIFTH YEAR ASKING FOR THE SAME AMOUNT OF MONEY.
SO WE SHOULD REDUCE THE AMOUNT SO THAT THEY CAN FIND MORE RESOURCES, UH, FROM OUTSIDE.
WHAT ARE YOU, WHAT'S THE THUMBS UP ON? I'M IN FAVOR OF THE REQUEST.
I, MY CONCERN THERE IS JUST WHAT, WHAT'S THE FIVE YEAR PLAN FOR THE ORGANIZATION? BUT, YOU KNOW, FOR THE EVENTS THAT THEY'RE HOSTING AND ORGANIZING AND PUTTING ON AN OLD TOWN, WHICH ARE QUITE POPULAR AND WELL ATTENDED, UM, I THINK THEY'RE, THEY'RE HELPING US TO DO, ACCOMPLISH SOME GOALS THERE.
KEVIN? I HAVE VERY SIMILAR CONCERNS WITH WHAT YOU GENTLEMEN HAVE ARTICULATED.
UM, YOU KNOW, I DO THINK THAT IT, UH, IT DOES HELP THAT THEY QUALIFY FOR HOT FUNDING.
THAT IS, YOU KNOW, WE'RE THEY ARE PROVIDING A SERVICE.
I'M, I'M GOOD WITH THEIR REQUEST.
UM, IS THERE, UH, I'M GONNA OPEN UP A CAN OF WORMS. I KNOW.
UM, IS THERE ANY WAY THAT WE COULD MAYBE DO LIKE MAYBE A 90,000 INITIALLY AND THEN WE GET SOME KIND OF UPDATE, YOU KNOW, UH, YOU KNOW, LIKE WHERE IT'S LIKE, I KNOW I'M OPENING UP A CAN OF WORM.
UH, THE ANSWER IS, INSTEAD OF SOLVING THAT YOU'VE ASKED FOR US TO TAKE A LOOK AT, WHY DON'T WE COME BACK WITH A WAY TO DIVIDE THEIR PAYMENTS UP WHEN THEY FIRST GOT STARTED TO, IF Y'ALL REMEMBER, THERE WAS THIS KIND OF REIMBURSABLE SET UP MM-HMM
THERE'S, THERE'S AN INITIAL, GO GET YOUR PAPERWORK DONE, GO GET YOUR ATTORNEY, GO GET THOSE THINGS DONE.
AND THEN THERE WAS KIND OF REIMBURSABLE.
SO LET US WORK ON THAT AND IF THAT'S WHAT YOU, AND WE DIDN'T PAY 'EM UNTIL THEY DELIVERED.
UH, I WANNA BE VERY CLEAR, I THINK THAT THEY ARE A VALUED OLD TOWN.
I THINK THAT THEY'RE, THEY'RE BRINGING, BUT, UM, I THINK I'D LIKE TO HEAR LIKE THEM ARTICULATE A LITTLE BIT MORE ABOUT THEIR PROGRAMS AND, AND WHERE THE FUNDS ARE GOING AND STUFF.
I JUST, I DIDN'T HEAR A LOT OF CLARITY IN, IN THE PRESENTATION ON THAT.
UM, AND, AND I'LL JUST BE VERY HONEST, JUST LIKE THE COMMENT THAT, UH, YOU KNOW, CHRIS SAID THAT SHE'S PERSONALLY FUNDED MONEY INTO THAT.
I MEAN, THAT'S A CONCERN AS WELL.
I MEAN, THAT, THAT'S OBVIOUSLY HER CHOICE.
BUT JUST I'D LOVE TO HAVE SOME MORE READ TAKE IT.
WE CAN WORK ON, WE CAN WORK ON THE CONTRACTS NOW.
I THINK THE, SO, OH, SO MARK CAPPEL, HIS, UH, EXCUSE, UH, EXCUSE ME, THE MUSEUM, HISTORICAL MUSEUM, UH, THEY REQUESTED 135.
WE GOT A SUGGESTION OF 90,000 ARE 1 35, BUT SPLIT INTO SOME TYPE OF PAYMENT STRUCTURE.
SO IF WE SPLIT IT INTO SOME, UH, PAYMENT STRUCTURE, WE'RE STILL ALLOWING THE BUDGET THERE.
THEY'RE YEARLY EXPENDITURES, UH, INCLUDING 135.
BUT WE WANT TO SEE WHERE IT'S GOING OR SOME SORT OF MEASUREMENT BEFORE WE'RE ISSUING THE, THE, THE SECOND OR THIRD PAYMENT.
THAT'S WHAT I'M HEARING THAT, THAT'S WHAT I'M HEARING ALSO, MARK.
THEN, UH, I'M, I'M ALL FOR IT.
I MEAN, I THINK THEY DO, UM, A GREAT JOB THERE, BUT I THINK WE NEED TO, TO, TO SEE A LITTLE MORE OF THE LONG RANGE PLANNING AND, YOU KNOW, WHERE ARE WE GONNA BE NEXT YEAR.
I THINK MARK JUST ARTICULATED SOMETHING I WOULD, AND, AND I WOULD LOVE TO SEE MORE OF A, A LONG-TERM PLAN.
I THINK THAT THAT'S REALLY WHAT I'M LOOKING FOR.
I'M TRYING TO FIGURE OUT WHAT I'M, WHAT I'M LOOKING FOR.
I THINK THAT'S A, I CAN, THAT'S BEEN REQUESTED AND WE'LL
[03:15:01]
CONTINUE TO BE REQUESTED.WE, WE ACTUALLY HAVE A, UH, I WON'T, WE HAVE A, BOTH THE, THE MUSEUM AND THE SOCIETY HAVE A LITTLE BIT LONGER PROBLEM IN IT.
IT'S BOTH A LONG TERM COMMITMENT FROM VOLUNTEERS.
SO THAT'S SOMETHING THAT WE'RE ALSO CONCERNED ABOUT.
DON, I WAS JUST GONNA SAY MY, MY, OH, I'M SORRY.
UM, I WAS GOING TO, MY, PART OF MY BIGGEST CONCERN IS FINANCIAL REPORTING ON THIS ONE.
AND I NOTICED LIKE THERE NINE 90 IS NOT EVEN IN HERE, BUT IT'S ACTUALLY THEY HAVE A NINE 90 FOR TWO FOR 2025.
SO I THINK THAT WILL HELP US A LOT.
JUST GETTING, AND I KNOW THEY, IT'S BEEN A WORK IN PROGRESS FOR YOU FOR THEM, BUT GETTING MORE LIKE WHAT ARE THEY ACTUALLY SPENDING AND WHAT, WHAT, WHAT DO THE FINANCIALS ACTUALLY LOOK LIKE TO COMPARE THE BUDGETS TO? I THINK, THINK WE'LL GO A LONG WAY.
UM, SO I WAS GLAD TO SEE THAT THEY ACTUALLY DID FOLLOW MOUNT 90 FOR 2025.
'CAUSE AT LEAST, AT LEAST THAT INFORMATION IS OUT THERE.
UM, SORRY, I HAVE, I'M SIMILAR, SORRY.
UM, SAYING SIMILAR THOUGHTS THAT DON WE NEED TO SEE, ESPECIALLY CHRIS SAID HER OWN PERSONAL MONEY, UM, THAT'S ALSO A CONCERN.
SO THAT MEANS, YOU KNOW, THE FUNDING THAT WE ARE PROVIDING IS NOT ENOUGH RIGHT.
AND SHE ALSO MENTIONED SHE IS DOING A CPA AUDITED FIRM IS THE 60,000 SHE SPENT, HER PERSONAL MONEY IS INCLUDED IN THE FINANCIAL THAT CITY RECEIVED.
I HAVEN'T SEEN THAT IN THE PACKAGE INCLUDED IN MY CITY COUNCIL MEETING.
SO DO WE HAVE THAT UPDATE? SO THOSE ARE THE QUESTIONS I HAVE.
AND UNDERSTAND, AND THOSE QUESTIONS HAVE BEEN ASKED FROM A COUPLE OF TIMES, BUT IS TAXPAYER'S MONEY WE ARE PROVIDING, SHOULD WE HAVE SOME ACCOUNTABILITY, UH, THAT HAS BEEN REQUESTED ACTUALLY, ONCE WE GIVE IT TO THEM, IT'S, IT, YOU KNOW, YOU'RE GRANTING IT AS A FIDUCIAL RESPONSIBILITY OF THE CITY.
SO, UM, IT'S A RESPONSIBILITY TO THE COUNCIL TO SEE THAT.
NEXT AND LAST IS THE COPPEL HISTORICAL SOCIETY A $10,000 REQUEST.
UM, NO CHANGE FROM THEIR PREVIOUS REQUEST.
UH, WE'RE FINISHED WITH THOSE.
SO WHAT'S THE INCREASE THIS YEAR AFTER ADDING ALL THOSE? OH, THAT'S FINE.
I, I KNOW I THOUGHT YOU WERE, I THOUGHT YOU WERE.
YOU'RE PUTTING CHECK MARKS OR I, I'M, I'M PRETTY GOOD WITH MATH, BUT I CAN'T DO, I CAN'T DO THAT MUCH IN MY HEAD.
UM, BECAUSE ULTIMATELY WE CHANGED, WELL HERE I TELL YOU WHAT, WE WENT ED FOUNDATION HERE, ACTUALLY I CAN DO IT.
SO WE WENT DOWN 43,000 ON THE FIRST PAGE AND WE WENT, FUNDED ALL THE HOT TAX.
SO WE'RE AT 2 75, 700 ON THE SECOND PAGE.
AND WE'RE AT SIX, NO, 5 53 58, 7 75 ON THE FIRST PAGE.
SO THE INCREASED AMOUNT COMING FROM THE GENERAL FUND, WHICH IS WE ARE ESTIMATING A STAFF IS ESTIMATING AT 1.6 MILLION 3.499.
SO THAT'S WHERE THE MONEY IS GONNA COME FROM.
I DON'T, THIS GOES BACK TO THE DISCUSSION YESTERDAY.
WERE THERE JUST TWO THAT GOT DEEPER THAT DID NOT LIKE ED FOUNDATION AND LOVE THAT NEIGHBOR? YES.
ARE THOSE THE ONLY TWO THAT WERE NOT? YES.
I THINK THAT'S WHAT I COME UP WITH.
SO IT'S ALMOST 10,000 LAST THAN LAST YEAR.
SO WHAT DID WE END UP DOING IN LOVE BY NEIGHBOR? WE CUT THEM FROM FIVE DOWN TO THREE, KEPT THEM FLAT.
THAT'S GONNA REALLY SHOW IN THE BOTTOM LINE SPENDING $10,000 LESS THAN LAST YEAR.
DO, DOES ANYBODY WANT TO GO DOWN THE ENTIRE LIST OF COUNSEL BUDGET ITEMS?
[03:20:03]
I WANNA GO DOWN NEVILLE'S, BUDGET,THERE'S SOME WILD STUFF IN THAT BUDGET.
WELL, THAT'S, UH, I, I'VE BEEN THROUGH IT, MAYOR, AND I DON'T HAVE ANY
I HAVE THE DISCOVERY COP, UM, I KNOW THEY CAME AND REQUESTED AND THEY HAVE BEEN, WE ARE FUNDING IT.
DO WE NEED TO HAVE A DISCUSSION ON THAT TOPIC? UH, WE CAN CERTAINLY HAVE A DISCUSSION ON THE TOPIC RIGHT NOW.
I MEAN, DO WE NEED TO CONTINUE TO FUND THAT IS MY QUESTION.
THAT WAS A MARKETING PROGRAM THAT WE STARTED INITIALLY, AT LEAST WHEN WE STARTED.
SO WE ARE GETTING ABOUT MORE THAN A QUARTER OF A MILLION DOLLAR TO CONTINUE TO MARKET.
UM, DO WE NEED TO DO THAT? COULD YOU REMEMBER HER PRESENTATION? THIS WAS A YEAR WHERE SHE WAS MOVING FROM, UH, OUTSOURCED MARKETING TO ACTUALLY HIRING SOMEONE DOING IT IN-HOUSE AND ACTUALLY SAVING SOME MONEY.
AND WE KIND OF ALL GAVE A THUMBS UP TO HER.
I PERSONALLY BELIEVE THAT, UH, HOT TAXES IS A GOOD CANDIDATE TO PROMOTE OUR LOCAL BUSINESSES.
AND THE FACT THAT WE ASKED HER TO GO HIRE SOMEONE, UH, I FEEL VERY, UM, AWKWARD NOW GOING IN AND SAYING, UH, DON'T DO THAT.
UM, SO IF IT WAS AN OUTSOURCED VENDOR, IT'S A DIFFERENT SITUATION.
SHE HAS PROBABLY ALREADY GONE AND HIRED SOMEONE.
SO I FEEL LIKE THIS YEAR I'M GOING TO SUPPORT WHAT THEY'VE ASKED.
HOW MUCH IN HOTEL OCCUPANCY TAX DID WE COLLECT LAST YEAR HERE? IT'S, UM, IT'S IN, I THINK IT'S THE FIRST PAGE.
IN THE FIRST PAGE WOULD BE WAY TOO EASY TO FIND
IT'S IN THAT, IT'S REJECTING THAT, I GUESS THAT ECONOMIC ALL 1.6, 1.5, 1.1 MILLION 5 68.
SO, AND WHAT YOU REALLY NEED TO LOOK AT IS, IS THE FUND BALANCE IS GOING UP.
NOT A BAD THING, BUT, UM, THE, THE, THE ONLY QUESTION I HAD ON, IT'S REALLY SMALL, I APOLOGIZE.
UM, I, THIS IS, I HAVE IT IN FOLLOW BEFORE.
IT'S THE HOTEL OCCUPANCY TAX FUND AND IT WALKS THROUGH.
IS THIS FROM THE, UM, YOU NEED CREATION OF THE FUND? YES, IT IS FROM INCEPTION.
THAT'S THE WORD I WAS LOOKING FOR.
IT SEE, ASK QUESTIONS AND GET ANSWERS.
THE AMOUNTS OR THE SIZE? NO, IT'S CONTINUED TO GROW OVER YEAR.
FUND BALANCE HAS CONTINUED TO GROW EVEN AS WE'VE INCREASED YES.
WE STILL, WE GET A NICE BONUS OUT OF THE WORLD CUP.
I MEAN, SERIOUSLY, I THINK ALL OF OUR HOTELS WERE BOOKED.
THEY WEREN'T REALLY ROBINSON, SHE THOUGHT THEY WERE.
I I WAS DOWN AT ONE OF THE HOTELS FOR SOMETHING AND I WAS ASKING THE MANAGER, SHE SAID THEY HADN'T SEEN NEAR THE BOBBY BARN THIS, THE BOOKINGS THAT THEY WERE TOLD THAT THEY WERE GONNA SEE.
SO I WENT DOWN THE LIST MYSELF AND I ONLY HAD ONE QUESTION.
IT WAS ABOUT THE, YOU KNOW, TEXAS INNOVATION ALLIANCE AND MIKE EXPLAINED THAT THAT WAS THE SMART CITIES ADVISORY OR CONSULTANT.
SO, WELL, YES, IT'S THE GROUP IN THE DALLAS AREA THAT IS IN THE INNOVATION AT MARINA AND IT SUPPORTS THE SMART CITY.
SO THAT WAS THE ONLY QUESTION I HAD.
WELL, WE WENT ON DISCOVER COPPEL.
DID WE CLOSE THE TOPIC? NO, WE DID NOT.
SO IS IT NOT, IS IT TRUE THAT IF THE CHAMBER DOESN'T DO THE PROMOTION AND MARKETING THAT YOU WOULD HAVE TO PICK THAT UP INTERNALLY? WELL, YEAH.
THE FUND, THE FUND IS TALKS ABOUT THESE DIFFERENT USES AND ONE OF THE USES HAS TO BE RELATED TO MARKETING.
UH, AND SO IF WE ARE NOT CONTRACTING FOR SOMEBODY TO DO THE MARKETING, THAT MEANS THAT WE'RE GONNA TAKE IT IN HOUSE.
[03:25:01]
I WOULD RATHER NOT HAVE US TAKE IT IN HOUSE GIVEN EVERYTHING ELSE WE'RE DOING.UM, AND THEN I, I JUST TO GO BACK ON WHAT, UH, RAMESH WAS SAYING, UH, WHEN ROBIN DID HER PRESENTATION, IF Y'ALL REMEMBER, THE BIG ISSUE WAS ON THE KPIS, UH, FOR WHAT WAS GOING ON BEFORE.
AND ROBIN'S, YOU KNOW, AT THAT TIME EVEN SAID THAT SHE HAD A DIFFICULT TIME TRYING TO FIGURE OUT, AND THAT THERE WAS A, WITH HER EXPERIENCE OF KNOWING WHAT SHE WAS DOING AND HOW TO DO IT, SHE COMMITTED TO Y'ALL THAT SHE WOULD BE COMING TO YOU WITH MEASURABLE, HERE'S WHAT'S HAPPENING.
AND THAT, THAT WAS GONNA BE THE FIRST TIME YOU'RE REALLY GONNA HAVE SOMETHING TO GO FOR.
'CAUSE UP TILL NOW, YOU'VE JUST NOT REALLY HAD THAT.
UM, SO, AND THEN THIS ALSO FEEDS INTO THE OTHER, I WOULD CALL IT, UH, SUPPORT THAT Y'ALL ARE PROVIDING.
AND THAT IS TALKING ABOUT THE OLD TOWN AND ACTIVATION AND THOSE KIND OF THINGS.
SO THOSE THINGS KIND OF WORK HAND IN HAND.
UH, AND DISCOVER CARTEL PROVIDES THAT OPPORTUNITY TO, TO PROVIDE THAT KIND OF MARKETING AS WELL.
SO, UH, THE HOTEL MOTEL TAX, IF IT'S GOING TO BE USED, UH, THIS IS ONE OF THE AREAS WHERE THE LANGUAGE TALKS ABOUT YOU, YOU NEED TO BE SPENDING MONEY ON MARKETING.
I MEAN, I THINK, AND THE FACT THAT IT'S ROBIN'S FIRST YEAR LOOKING AT THE PROGRAM, LIKE WHAT'S BEST, I THINK CERTAINLY GIVING HER RUNWAY TO SEE IF SHE CAN ADDRESS EITHER OUR CONCERNS WITH OUR OWN, THE CHAMBER'S OWN CONCERNS, UH, ON WHAT WAS GOING ON.
SO I THINK IT'S, I THINK WE SHOULD GIVE HER SOME RUNWAY FOR SURE TO SEE, SEE SOME BENEFIT OUT OF IT.
STRATEGY OF BRINGING IN-HOUSE BECAUSE THAT'S GONNA SAVE MONEY.
SO, YOU KNOW, THAT'S, THAT'S A GOOD THING.
THEY'RE DOING OUTSOURCING TO OUTSIDE.
AND YOU KNOW, THE, THE THING, THE THING THAT GETS ME IS WE'VE GOTTA SPEND THAT MONEY ON MARKETING.
AND SO IT'S EITHER WITH AND I, I LIKE BEING ABLE TO SUPPORT THE CHAMBER AND, YOU KNOW, AND I AGREE WITH MIKE, YOU KNOW, WE DON'T NEED TO BE BRINGING A ANOTHER FUNCTION INTERNALLY ON, SO IT'S A, I THINK IT'S A GOOD EXPENDITURE MYSELF.
AND I HAVEN'T, I HAVEN'T GIVEN MY OPINION ON ANY OF THESE.
SO I SHARED THOSE WITH RAMESH AT LUNCH TODAY.
OKAY, SO I THINK I'VE GOT FOUR YESES HERE.
SO, UM, AS FAR AS THE, UH, DISCOVER ELL PROGRAM.
YOU LOOK LIKE YOU HAVE SOMETHING TO POSSIBLY, OKAY.
IS IT? WELL, WHENEVER YOU'RE, HUH? JUST WHENEVER WE'RE WRAPPED UP.
UM, YOU DONE? I DON'T, ARE WE WRAPPED UP GUYS? ANYTHING, ANY, ANYTHING ELSE ON THE, ON THE BUDGET, UM, ON TERMS OF, UH, THE SERVICE ORGANIZATION REQUEST OR THE, THE COUNCIL BUDGET? I'M SO WRAPPED UP.
I'M READY FOR FEDEX TO TAKE ME HOME.
ANYBODY HAVE ANYTHING? WELL, I WOULD, WE, WE, WE DO HAVE TO EXTEND A BIG THANK YOU TO EVERYBODY AT THE OTHER END OF THE TABLE FOR ALL THE WORK THAT YOU GUYS HAVE DONE.
I KNOW THIS IS, UH, A, A, A, A PAIN AND, UM, YOU'VE DONE QUITE WELL.
I'M GONNA, UNDER THE, UH, UNDER THE BUDGET ITEM, WE'RE GONNA LET DON TALK KNOW.
UH, SO I WANT TO REITERATE EVERYTHING THAT SFE HAS DONE, UH, TO PREPARE US AND CMO AND EVERYTHING ELSE.
UM, I THINK THERE IS A LOT OF MY OPINION IS THERE'S A LOT OF STRATEGY THAT IS GOING INTO THIS LONG TERM.
AND I'M A LITTLE BIT REITERATING WHAT DIFFERENT STAFF MEMBERS HAVE SAID TONIGHT.
AND I GUESS I WANT TO CAUTION ALL OF US TO BE SURE THAT WE STAY, UM, DOING WHAT WE'RE SUPPOSED TO DO.
AND THAT IS SOMEWHAT AT A HIGH LEVEL.
AND THERE'S, THERE'S A LOT OF LITTLE THINGS WE'VE TALKED ABOUT TONIGHT.
SOME I DON'T ABOUT NITPICKY, BUT THEY'RE RELATIVELY SMALL IN NATURE.
AND I, AND I WOULD LIKE US TO MAKE SURE WE ARE TRUSTING THE STAFF THAT WE HAVE EMPLOYED TO RUN THIS CITY, TO BE VERY
[03:30:01]
GOOD AT IDENTIFYING PLACES WHERE WE CAN BECOME MORE EFFICIENT BECAUSE WE ARE HAVING TO SOMEWHAT LAND THE PLAN AND WHO KNOWS WHAT HAPPENS THIS NEXT SESSION.UH, SO I DON'T WANT US TO GET TOO WRAPPED UP IN EVERY TIME.
'CAUSE THERE PROBABLY ARE A LOT OF, I DON'T WANNA SAY SERVICE CUT, SERVICE ADJUSTMENTS, SERVICE MODIFICATIONS THAT ARE GONNA HAPPEN.
AND I DON'T WANT TO GET, SO I DON'T WANT THE SEVEN OF US TO GET SO WRAPPED UP IN EVERY SINGLE DECISION.
UH, 'CAUSE QUITE FRANKLY, I THINK MAYBE THAT IS NOT EXACTLY WHERE OUR ROLE IS TO BE DOWN IN THE, IN THE WEEDS.
AND ANYTHING THAT STAFF DOES RECOMMEND AND CHANGES, I SUSPECT IS ALWAYS REVERSIBLE AT SOME POINT IN THE FUTURE IF IT TURNED OUT NOT TO BE AS SUCCESSFUL AS WE THOUGHT IT WAS.
SO, UH, I JUST WANT TO SAY I'VE BEEN VERY APPRECIATIVE OF WHAT STAFF DOES AND HOW MUCH EFFORT THAT THE DIRECTORS AND ASSISTANT DIRECTORS ARE PUTTING INTO THIS AND IDENTIFYING ALL THE PLACES WHERE WE THINK WE CAN CHANGE THINGS AND MODIFY AND DO THINGS DIFFERENTLY THAN WHAT WE'VE DONE BEFORE.
ALL PROGRAMS HAVE A SHELF LIFE AND THEY NEEDS CHANGE AND PROGRAMS CHANGE AND THEY DISAPPEAR AND NEW THINGS ARISE.
AND WE, I DON'T THINK WE SHOULD BE GET TOO CONCERNED ABOUT SOME OF THOSE THINGS.
UM, SO I APPRECIATE EVERYTHING THAT Y'ALL DO, UM, AND ARE GOING TO DO BECAUSE I KNOW THIS IS JUST THE BEGINNING OF WHAT'S TO COME AHEAD.
UH, AND I JUST WANT US TO MAKE SURE WE DON'T FEEL LIKE, UM, I WANT THE STAFF TO BE ABLE TO BRING US STUFF AND NOT FEEL LIKE THEY ARE GONNA GET SECOND GUESSED ON EVERY LITTLE THING THAT COMES UP.
SO I WILL SHARE THAT WITH EVERYBODY.
UH, I ALSO WANT TO APPRECIATE THE STAFF CMOS OFFICE AND FINANCE DEPARTMENT FOR DOING A GREAT JOB.
AT THE END OF THE DAY, THIS IS A COUNCIL BUDGET AND THE STAFF IS ASSISTING US TO PUT A GOOD PRODUCT OUT THERE FOR THE 43,000 PEOPLE TO SEE WHAT WE ARE DOING HERE.
SO IT IS OUR RESPONSIBILITY TO THIS, THE PEOPLE WHO ELECTED US, THAT WE ARE SPENDING TAXPAYERS MONEY WISELY EACH LINE ITEM THAT WE GO THROUGH EVERY YEAR.
IT'S IMPORTANT THAT WE ASK RIGHT QUESTIONS AND WE GET THE PROPER ANSWERS FROM THE STAFF.
SO I APPRECIATE ALL THE ANSWERS THAT I GOT, EVEN SPENDING EXTRA TIME WITH ME YESTERDAY ANSWERING MY QUESTIONS.
UH, I WANT TO ADD AND SAY THE SFP TEAM, YOU HAVE DONE AN AMAZING JOB LIKE YOU ALWAYS DO.
UH, THANK YOU SO MUCH FOR YOUR PATIENCE AND IN ANSWERING ALL THE, UM, QUESTIONS AND THEN TO THE CMO TEAM AND THE SFA TEAM, UH, THE EXAMPLES THAT YOU BROUGHT, UH, REGARDLESS OF HOW WE REACTED, I THINK THOSE WERE THE APPROPRIATE EXAMPLES.
SO PLEASE CONTINUE TO KEEP DOING THAT.
I'M TALKING ABOUT THE, UM, ADJUSTMENT OF OURS, OF THE CORE AND, UH, THE DAYCARE, SUNSHINE, SUNSHINE, SUNSHINE.
UH, SO, UM, PLEASE DON'T TAKE, TAKE THAT PERSONALLY.
UM, THE FUTURE EXAMPLES THAT YOU BRING, WE MOST LIKELY WILL DEBATE AND AND DISAGREE, BUT, UH, YOU ARE DOING YOUR JOB BY BRINGING THOSE EXAMPLES TO US.
SO THANK YOU FOR, FOR DOING THAT.
UH, AND THEN, THEN FINALLY, I'LL SAY I WAS A LITTLE BIT OF A BRIDGE TODAY.
UM, YOU KNOW, WITH THIS SERVICE OR REQUEST, I DID NOT WANT TO, UH, PICK AND CHOOSE WINNERS.
SO I WENT WITH A FLAT 3.499% INCREASE, WHICH TIES TO OUR MAXIMUM ABILITY TO, TO RAISE REVENUE.
UM, AND THEN, UM, YOU KNOW, NO PERSONAL ATTACK.
I MEAN, UH, IT WAS NOTHING PERSONAL AGAINST ANY OF THOSE ORGANIZATIONS.
UNFORTUNATELY, WE DO HAVE THE RESPONSIBILITY WORKING WITH THE CMO AND SFP TO MEET THE, THE, THE BUDGET THAT WE HAVE.
SO, SO THAT'S WHY I MADE THOSE RECOMMENDATIONS.
I'M GLAD TO TALK TO ANYONE WHO HAS CONCERNS WITH THAT.
YOU HAVE ANYTHING TO CLOSE UP WITH? I DO NOT.
ALRIGHT, WELL THANK YOU VERY MUCH.
ITEM NUMBER EIGHT ON THE AGENDA IS CITIZEN'S APPEARANCE.
I DO NOT BELIEVE WE HAD ANYBODY SIGNED UP TO SPEAK.
SO THEREFORE, ITEM NUMBER NINE, THERE BEING NO FURTHER BUSINESS BEFORE THE COUNCIL.
WE ARE ADJOURNED AT 9:56 PM GOOD JOB Y'ALL.