[CALL TO ORDER]
[00:00:06]
GOOD MORNING. TODAY IS FRIDAY, AUGUST 11TH YEAR. 2023 IT'S 8 31 IN THE MORNING. WE'RE IN COUNCIL CHAMBERS AT 2 22 NORTH TENNESSEE STREET. THIS IS OUR BUDGET WORK SESSION. AND THE FIRST ORDER OF
[PUBLIC COMMENTS ON AGENDA ITEMS]
BUSINESS IS PUBLIC COMMENTS. DO WE HAVE ANYBODY SIGNED UP TO SPEAK? NO WE DO NOT ANYONE HERE LIKE TO COME UP AND SPEAK. I SEE MICHAEL QUINTUS, COMING IN. MAYBE HE WOULD LIKE TO COME UP AND PUBLIC COMMENT, SIR. HE'S COMING CHARGING THE STATION CHARGE. I JUST WANT YOU TO KNOW I AM NOT WEARING SOCKS THIS MORNING. THANK YOU FOR YOUR TIME. APPRECIATE THAT AM I? WE[Discuss Fiscal Year 2023-24 Budget]
WILL NOW MOVE TO OUR WORK SESSION ITEM 23 064 TO DISCUSS FISCAL YEAR 2023 24 BUDGET OBVIOUSLY WE NEED TO INCREASE IT. WE CAN GET SOCKS. I WAS ABOUT TO SAY I DON'T I DON'T KNOW IF WE CAN TOP THAT YOU JUST DON'T HELP IT. PAUL WHAT A WAY TO START OUR MEETING. WELL, ANYWAY. GOOD MORNING, MR MAYOR. MEMBERS OF THE COUNCIL. UM HAPPY TO BE HERE PRESENT THE BUDGET TO YOU, AS IS TRADITION, I SUPPOSE , UM I WILL BEGIN WITH MAKING SOME REMARKS SORT OF GIVING AN OVERVIEW OF WHERE WE ARE KIND OF HOW WE SEE THE ENVIRONMENT WE'RE IN. AND THEN AFTER I CONCLUDE MY COMMENTS, MR HOLLOWAY AND HIS FOLKS WILL KICK OFF WITH THE ACTUAL BUDGET BUDGET PRESENTATION. GO INTO THE DETAILS. WE HAVE LOTS OF FOOD HERE. SO IF COUNCIL MEMBERS OR ANYBODY FROM THE STAFF WHEN I GO UP AND GRAB SOME COFFEE OR FOOD AS WE GO, THAT'S JUST FINE. THIS ISN'T INTENDED TO BE A WORKSHOP. AND WORKING SESSIONS, SO IT'S A LITTLE MORE RELAXED ENVIRONMENT FROM THAT STANDPOINT, DON'T LET MY TIE THROW YOU OFF. THAT'S SO ANYWAY. SO ON BEHALF OF THE CITY STAFF, I'M PLEASED TO PRESENT TO YOU THE BUDGET FOR THE UPCOMING 2023 24 FISCAL YEAR ENDING SEPTEMBER 30TH OF 2024. IF I SOUND LIKE I'M REPEATING MYSELF WITH THE FOLLOWING PASSAGES BECAUSE THESE TRUISMS STAND THE TEST OF TIME. LIKE ALL BUDGET PRESENTATIONS, THIS BUDGET REPRESENTS A SNAPSHOT IN TIME CAPTURES WHAT WE UNDERSTAND TO BE THE PRIORITIES OF THE CITY COUNCIL. NAMELY IT IDENTIFIES THE RESOURCES NEEDED DURING THE NEXT FISCAL YEAR TO ENSURE THAT WE CAN SUCCESSFULLY CARRY OUT THE STRATEGIC PRIORITIES SET FORTH BY THE COUNCIL IN FEBRUARY AND MARCH STRATEGIC GOAL SETTING MEETINGS. AND FURTHER DETAILED IN THE STRATEGIC GOALS THAT YOU ADOPTED THIS PAST MAY MUNICIPAL BUDGETS ARE ULTIMATELY A POLITICAL PROCESS AND THAT THE ELECTED OFFICIALS OF THE COMMUNITY SIGNAL THEIR POLICY PRIORITIES BY LITERALLY AND FIGURATIVELY PUTTING MONEY WHERE THEIR INTEREST LAY. IF POLITICS IS FUNDAMENTALLY ABOUT WHO GETS WHAT WHEN? WHERE AND HOW MUCH THAN THE BUDGET IS THE PRIMARY TOOL IN WHICH WE MAKE THE POLITICS WORK IN A LOCAL COMMUNITY USING PROFESSIONAL AND TRANSPARENT PROCESSES. EACH OF THE PAST FEW BUDGET CYCLES. WE CAME BEFORE YOU WITH ONE UNUSUAL CHALLENGE AFTER ANOTHER. IN 2020 . WE PRESENTED A FISCAL YEAR 21 BUDGET IN THE MIDST OF THE COVID PANDEMIC WITH UNCERTAINTY ABOUT HOW IT MIGHT IMPACT OUR REVENUE STREAMS AND THE BROADER ECONOMY DUE TO THE SHELTER IN PLACE ORDERS AND SOCIAL DISTANCING REQUIREMENTS. WE SAW SEVERE IMPACTS IN THE AIRLINE, RESTAURANT, HOSPITALITY AND PERSONAL SERVICES SEGMENTS OF OUR ECONOMY. IT WAS NOT CLEAR HOW LONG IT WOULD TAKE FOR THEM TO BALANCE BACK. HOWEVER OUR SALES TAX REVENUE ACTUALLY SPIKED DUE TO THE ENORMOUS RISE IN DEMAND OF BIG BOX AND ONLINE RETAILERS. WITH SO MUCH UNCERTAINTY. WE PROPOSED A NO NEW REVENUE FISCAL YEAR 21 BUDGET FOR THE VERY FIRST TIME.THE FOLLOWING YEAR. WE PROPOSED A FISCAL YEAR 22 BUDGET IN THE CONTEXT OF WHAT WE FELT WAS THE SLOW EMERGENCE FROM THE PANDEMIC , ACCOMPANIED BY INCREDIBLE CHALLENGES WITH LABOR DEMAND.
PRIMARILY MEETING SHORTAGES AND RISING WAGES. AS SUCH, WE BROUGHT A BUDGET WITH AN EFFECTIVE RATE OF PLUS 2% WITH HEADLINE INFLATION AT THAT TIME OF ABOUT 6% WE THOUGHT INFLATION AT THAT TIME WAS TRANSITORY. AND THEN WE WOULD SOON SEE A MODERATION. THEY DID NOT HAPPEN.
LAST YEAR AND PREPARING THE FISCAL YEAR 23 BUDGET WE HAD AN ANNUALIZED INFLATION RATE HOVERING AROUND 9. 9.1% IN JUNE. IN FACT, AN 8.5% IN JULY THIS PLACE STRAINS ON EVERYONE FROM FAMILIES HAVING TO ADJUST TO HIGHER FOOD AND CLOTHING COSTS CONSTRUCTION CONTRACTS WITH CONSTANT INCREASES IN THEIR INPUT COSTS, INCLUDING BUILDING MATERIALS AND FUEL. MOREOVER WE HAD TO ADJUST TO A LABOR MARKET THAT WAS UNDER PRESSURE FROM RELATIVE LABOR SHORTAGES AND WAGE PRESSURES. WE MADE THOSE ADJUSTMENTS AND YOU PROVIDED THE RESOURCES FOR US TO MITIGATE THE WORST IMPACTS OF INFLATION FOR OUR STAFF. THIS BUDGET CYCLE. WE CAN ALL DO A COLLECTIVE KNOCK ON WOOD IS THINGS HAVE SETTLED A BIT IN OUR BUDGET ENVIRONMENT LOOKS RATHER HUMDRUM IN COMPARISON TO RECENT CYCLES. YEAR OVER YEAR. CORE INFLATION WAS 4.8% IN JUNE, STILL RELATIVELY HIGH, BUT BETTER THAN 9% THAT WE SAW LAST YEAR. AND CP I. INFLATION WAS 3% THE LOWEST WE'VE SEEN SINCE MARCH OF 2021, ACCORDING TO THE WALL STREET JOURNAL. THE FED'S INTEREST RATE
[00:05:04]
HIKES AND CLEARLY HAD AN IMPACT NOT ONLY ON INFLATION BUT ON INTEREST RATES AND BORROWING COSTS AS WELL. THIS SLOWING OF THE ECONOMY, WHILE INTENDED TO TAME INFLATION WILL ALSO SLOW SOME OF OUR ACTIVITY CLOSER TO HOME, INCLUDING SALES, TAXES AND CONSTRUCTION COSTS, FINANCING.OTHER HEADWINDS CONTINUE ON THE GLOBAL STAGE THAT DO IMPACT US IN OUR CORNER OF THE WORLD WAR CONTINUED DISRUPTION TO GLOBAL SHIPPING ROUTES FROM REGIONAL CONFLICTS SO PART SO CALLED DEEP GLOBALIZATION AND DEMOGRAPHIC AGING WILL ALL PLAYS UPWARD PRESSURE ON PRICES. LONG TERM STRUCTURAL CAPITAL COSTS ARE LIKELY TO INCREASE OVER TIME, MEANING THAT WE MUST PLAN TO LIKELY OPERATE IN A HIGHER INTEREST RATE ENVIRONMENT FOR SOME TIME. WITH ALL OF THAT.
ECONOMISTS GENERALLY AGREE THAT THE U. S. SHOULD CONTINUE TO SEE ECONOMIC GROWTH, WITH GROWTH PROJECTED TO BE BETWEEN 1.3 AND 1.8% FOR 2023, WHICH EXCEEDS THE EXPECTATIONS THAT WERE SET FORTH EARLIER IN THE YEAR. WITH SOME SLOWING EXPECTED IN 2024 IS HIGHER INTEREST RATES AND OTHER FACTORS WILL PRESENT ECONOMIC CHALLENGES. MOST ECONOMISTS BELIEVE THAT THE U. S. MIGHT JUST AVOID A RECESSION IN 2024, AND AS USUAL, THE OUTLOOK FOR TEXAS TYPICALLY MORE BULLISH THAN THE US WRIT LARGE. HAVING SAID ALL OF THIS. OVER THE PAST YEAR, WE HAVE SEEN SIGNIFICANT GROWTH. HERE IN MCKINNEY. ARE TAXABLE VALUE IS NOW $35.91 BILLION, A 15% INCREASE OVER LAST YEAR. THIS INCLUDES 1 BILLION IN NEW VALUE, THE FIRST EVER AT THIS LEVEL AND ANOTHER $3.7 BILLION INCREASE IN EXISTING PROPERTY VALUES. THIS YEAR. WE'RE PROPOSING A BUDGET OF 202.5 MILLION IN THE GENERAL FUND. WHICH SERVES AS THE CITY'S OPERATING BUDGET. TOTAL BUDGET, WHICH, AS YOU ALL KNOW, INCLUDES ENTERPRISE UTILITY FUNDS INSURANCE FUND. CAPITAL IMPROVEMENT PLAN, ETCETERA THAT TOTALS NEARLY $850 MILLION. WITH THESE RESOURCES, WE WILL CONTINUE TO FUND THE PROGRAMS THAT WE BELIEVE ARE CONSISTENT WITH YOUR STRATEGIC PRIORITIES.
TO NAME A FEW. THIS BUDGET CONTINUES TO PRIORITIZE PUBLIC SAFETY IS A KEY DRIVER IN THE COUNCIL'S PRIORITIES AS FURTHER SUPPORTED IN OUR BIANNUAL NATIONAL CITIZEN SURVEY.
SPECIFICALLY THIS PROPOSED BUDGET ADDS 10 NEW POSITIONS TO THE POLICE DEPARTMENT AND SEVEN FOR THE FIRE DEPARTMENT. SIX NEW POLICE FIRST RESPONDERS TO DETECTIVES, ONE POLICE SERGEANT , ONE RADIO SPECIALISTS AND A NEW STATE OF THE ART BODY AND INTEGRATED CAMERA SYSTEM. SIX FIREFIGHTERS AND FIRE PROTECTION ENGINEER THE PROPOSED BUDGET WILL FIND EMPLOYEES STEP INCREASES IN MARKET ADJUSTMENTS TO ENSURE THAT THEIR SALARIES ARE MARKET COMPETITIVE. THE BUDGET PROVIDES FUNDING TO ENSURE THAT OUR HIGH CUSTOMER SERVICE FUNCTIONS WILL CONTINUE TO FLOURISH WITH THE USE OF MODERN EQUIPMENT, VEHICLES AND PRODUCTIVE TOOLS FOR OUR EMPLOYEES TO UTILIZE. SPECIFIC TO THE STRATEGIC PLAN ADOPTED IN MAY. I WOULD LIKE TO HIGHLIGHT A FEW THINGS TO DEMONSTRATE HOW THE PROPOSED BUDGET ALLIANCE WITH YOUR GOALS. FOR EXAMPLE, UNDER THE CATEGORY OF STRATEGIC AND ECONOMIC GROWTH, THE COUNCIL ADDED HIGH SPEED DIGITAL CONNECTIVITY IN THE EMPHASIS ON MCKINNEY BECOMING A LIVE WORK AND PLAY THAT'S QUOTE, WORK AND PLAY COMMUNITY. THE BUDGET INCLUDES CONTINUED SIP AND GENERAL FUND FUNDING FOR PARKS AND RECREATIONAL OPPORTUNITIES. I POINT OUT, HOWEVER, THAT LATER IN THIS BUDGET WORKSHOP WILL DISCUSS FUTURE CAPITAL FUNDING FOR PARKS AND OTHER AREAS BECAUSE IT'S PROBABLY TIME FOR US TO START THINKING ABOUT UPON ELECTION FOR THE C I. P PROGRAMS. OUR BUDGET ALSO CONTINUES TO INCLUDE ROBUST PROGRAMS AND ECONOMIC AND COMMUNITY DEVELOPMENT EFFORTS, INCLUDING OVER $24 MILLION IN SALES TAX DOLLARS ATTRIBUTED TO EACH OF OUR CDC AND CDC COMPONENT UNITS. YOU ALSO DIRECTED STAFF TO CONTINUE TO BUILD UPON OUR OPERATIONAL EXCELLENCE. WHICH INCLUDES RESEARCH AND ADOPTION OF NEW TECHNOLOGIES, INCLUDING SELECT SMART CITIES TECHNOLOGIES TO AUGMENT OUR SERVICE LEVELS. NEW AND REPLACEMENT EQUIPMENT FOR PUBLIC WORKS AND PARKS AND RECREATION DEPARTMENTS ARE IN THIS BUDGET. NEW I T EQUIPMENT AND INCREASED EFFORTS TO ENSURE FAILSAFE CYBERSECURITY. WE MENTIONED THE NEW POLICE BODY CAMERA SYSTEM THAT OFFERS US A MORE SECURE STORAGE AND INTEGRATED ENVIRONMENT THAN THE INCUMBENT SYSTEM DOES WHERE WE HAVE TO KEEP THE SERVERS INTERNALLY THIS WAY IS A CLOUD BASED SYSTEM. ALL KEY INTERNAL SERVICE FUNCTIONS THAT HELP KEEP OUR ORGANIZATION RUNNING, FUNCTIONING AND LEAN. THAT'S IN THIS BUDGET YOU WILL FIND IN THE UPCOMING PRESENTATION THAT WHEN COMPARED TO OTHER COLLIN COUNTY CITIES ARE STAFFING AND COST STRUCTURE ACROSS SEVERAL MEASURES DEMONSTRATES JUST HOW EFFICIENT AND LEAN THAT WE ARE. LEAN SYSTEMS AND STAFFING ALSO REFLECT THAT WERE MORE PRODUCTIVE THAN OUR NEIGHBORING CITIES. HOWEVER WE HAVE TO PAY FOR THAT HIGHER PRODUCTIVITY, AND THE COUNCIL HAS PREVIOUSLY MADE IT CLEAR THAT WE NEED TO MOVE OURSELVES UP THE MARKET LADDER, SO TO SPEAK. ENSURE THAT WE ARE FAIRLY COMPENSATING ARE DEDICATED STAFF THIS BUDGET INCLUDES FUNDS FOR ANOTHER MARKET STUDY TO ENSURE THAT WE ARE DOING SO AND ALONG THE WAY WHO ARE MAKING PROGRESS TOWARD OUR TARGET OF 60. OF THE MARKET.
INCREMENTALLY MOVING. FROM THE HISTORIC OR 60TH PERCENTILE. THE RIGHT TERM I SHOULD HAVE USED INCREMENTALLY MOVING FROM THE HISTORICAL PERCENTILE OF 50% THAT WE'VE USED THIS BUDGET ALSO PROPOSES TO ADDRESS OUR COMMUNITY NEEDS THROUGH PER CAPITA APPROACH TOWARD COMMUNITY
[00:10:01]
PROGRAM FUNDING. THIS WAS NEW LAST YEAR. AND THAT 50 FISCAL YEAR 23 BUDGET IN WHICH IS INTENDED TO BRING MORE CONSISTENCY AND PREDICTABILITY TO COMMUNITY FUNDING. FOR THE PROPOSED BUDGET. THIS IS THIS NUMBER IS $2.91 PER CAPITA, WHICH IS ABOUT $614,000 FOR COMMUNITY FUNDING. UM, PROGRAMS. CEREBRAL C I P BUDGET ITEMS. THE CITY HALL CONSTRUCTION IS WELL UNDERWAY AND ON SCHEDULE FOR COMPLETION IN THE FOURTH QUARTER OF 2024 AIRPORT RUNWAY IS UNDER CONSTRUCTION ON THE SOUTH END AND WE EXPECT THE NORTHERN SEGMENT TO BEGIN THIS THIS NEXT YEAR. FINALLY OUR NEW FIRE HEADQUARTER BUILDING AT A NEW FIRE STATION NUMBER TWO AT THAT SAME LOCATION WILL ALSO BEGIN CONSTRUCTION IN THIS PROPOSED BUDGET CYCLE. WE CONTINUE TO EXPLORE THE BEST SCENARIOS FOR THE CITY COUNCIL TO CONSIDER WITH RESPECT TO PASSENGER SERVICE AND MAKE INTERNATIONAL AIRPORT PROVISION IS MADE IN THE AIRPORT BUDGET TO CONTINUE WITH THE PART 1 39 DESIGNATION. WHICH YOU KNOW IS NECESSARY DESIGNATION FOR PASSENGER FUTURE PASSENGER SERVICE. IN SUMMARY THE PROPOSED FISCAL YEAR 24 BUDGET LIKE OLD BUDGETS IS A MATTER OF BALANCED PRIORITIES. SPECIFICALLY WE WEIGHED THE ECONOMIC CHALLENGES WE ALL FACE IN TODAY'S UNPREDICTABLE WORLD AND WHAT WE CAN REALISTICALLY DO TO CONTINUE INCREMENTALLY IMPROVING THE QUALITY OF LIFE IN OUR COMMUNITY. FINALLY I CONCLUDE WHERE I BEGAN BY STATING THAT A BUDGET ULTIMATELY CONVEYS WHAT YOUR PRIORITIES ARE FOR OUR COMMUNITY. IT'S A POLITICAL INSTRUMENT IN THAT THOSE PRIORITIES ARE DETERMINED THROUGH THE REPRESENTATIVE PROCESS. IT IS ALSO A COMMUNICATION TOOL THAT CONVEYS THESE PRIORITIES TO ALL COMMUNITY STAKEHOLDERS, AND LASTLY, IT REPRESENTS A SOCIAL CONTRACT WITH THE CITIZENS WE SERVE AND THAT IT IMPLEMENTS THE RESOURCES PROGRAMS AND PROJECTS THAT ULTIMATELY CONTRIBUTE. TO THE WORK TO THE MATERIAL WELL BEING OF MCKINNEY AS DETERMINED BY YOU CITY COUNCIL. ON BEHALF OF THE ENTIRE STAFF. ASSISTANT CITY MANAGERS I FEEL AND I FEEL THAT THIS PROPOSED BUDGET BALANCES THESE PRIORITIES AS ADOPTED BY YOU, THE CITY COUNCIL. WITH THAT. I'M GOING TO TURN THIS OVER TO OUR CFO MARK HOLLOWAY, WHO'S GOING TO KICK OFF OUR BUDGET PRESENTATION WITH LOTS OF DETAILS, AND WE'LL BE HERE TO ANSWER ANY QUESTIONS YOU MIGHT HAVE. AND THE REAL BRAIN THE BRAINS IN THE ROOM OR SITTING BEHIND US WITH OUR STAFF , THE SUBJECT MATTER. EXPERTS WILL HAVE COMMAND OF ADDITIONAL DETAILS. SO THANK YOU. AS ALWAYS, PAUL. THANKS. UM COUNCIL. THANK YOU FOR BEING HERE. CITY STAFF. THOSE OF YOU HERE AND ALL OF YOU THAT HAVE A HAND IN PUTTING TOGETHER THE FISCAL YEAR 24 BUDGET THANK YOU , THE CITIZENS HERE OR ONLINE FOR BEING PART OF THE DISCUSSION. AND ALWAYS A SPECIAL THANKS TO TREVOR, DAGON AND PALOMA FOR PUTTING ALL THIS TOGETHER, SO, UM, THIS IS MY 11TH TIME PARTICIPATING IN THE BUDGET WORKSHOP HERE IN WITH THE CITY OF MCKINNEY. I HAVE ENJOYED PIECING THIS ONE TOGETHER AS MUCH AS ANY OF THE OF THE PREVIOUS ONES THAT HAVE BEEN A PART OF YOU CAN SEE ON THE SCREEN HERE. OUR AGENDA FOR THE MORNING. WE WILL ATTEMPT TO MOVE THROUGH THIS AS QUICKLY AS WE CAN, BUT THERE'S A LOT OF INFORMATION HERE. UM I WILL HAVE SOME HELP PRESENTING THIS MORNING. WE DO HAVE SOME CONSULTANTS HERE TO SPEAK ON WATER. UM THEY'LL THEY'LL BE UP HERE IN JUST A FEW MINUTES AND THEN I ALSO HAVE THE TO TREVOR'S LINED UP TO HELP US THIS MORNING , MR MINIATURE, OUR DIRECTOR OF STRATEGIC STRATEGIC SERVICES, WHO WAS ONCE ONE OF US IN FINANCE, BUT HE LEFT US, BUT HE LIKES TO HELP DURING THE BUDGET PROCESS. UM AND THEN OUR BUDGET MANAGER TREVOR DAGON, SO HE WILL BE TALKING A LITTLE BIT LATER IN THE IN THE PROGRAM, BUT PLEASE FEEL FREE TO STOP US AT ANY TIME . IF WE DON'T HAVE AN ANSWER IMMEDIATELY, UM, WE HAVE PEOPLE STANDING BY OUT HERE TO GET IT. AND IF IT TAKES A LITTLE BIT LONGER, WE'LL GET YOU ANSWERS AS SOON AS WE CAN. SO YOU CAN SEE THE AGENDA THAT WILL WALK THROUGH TODAY WILL WILL TALK A LITTLE BIT ABOUT THE BUDGET PROCESS. THEN WE'LL MOVE ON. I'M GONNA LET LET OUR CONSULTANTS STEP FORWARD. TALK ABOUT WATER AND WASTE WATER RATES AND THEN WE'LL HAVE AN OVERVIEW OF THE BUDGET THAT DOESN'T TAKE VERY LONG. BUT THEN WE'LL MOVE INTO THE PROPERTY TAX. WE'LL TALK ABOUT THE GENERAL FUND AND THEN MOVE ON TO THE OTHER FUNDS. SO THEY WANT TO JUST BRIEFLY TALK ABOUT ABOUT THE BUDGET PROCESS. UM, WE START IT'S KIND OF A REMINDER EACH YEAR OF WHAT IT TAKES FOR US TO GET HERE TODAY AND WHERE WE GO FROM HERE, SO WE'LL JUST START WITH JUST A SHORT REMINDER OF HOW THE ACTUAL BUDGET PROCESS MOVES FORWARD. SO THE WHEEL OF TIME TURNS. AND HERE IT IS. WE SHOW THIS EVERY YEAR. WE USE THIS TO ILLUSTRATE HOW THE BUDGET CALENDAR WORKS INSIDE OF OUR YEARLY CHARACTER CALENDAR. MAN'S IS WHERE WE'VE BEEN BEFORE TODAY WHERE WE ARE TODAY AND WHERE WE GO AFTER TODAY. UM WE HAVE FIVE PHASES THAT WE CONSIDER IN OUR BUDGET AND FOR THE 24 FISCAL YEAR 24 BUDGET WE'VE BEEN THROUGH THREE OF THE THOSE PHASES. THE FIRST IS THE PLANNING PROCESS AND I WILL TALK A LITTLE BIT MORE DEPTH ABOUT HOW WE GO INTO PLANNING THE EACH EACH FISCAL YEAR'S BUDGET. BUT THIS PART INCLUDES STRATEGIC PLANNING DONE[00:15:02]
BY THE COUNCIL INCLUDES THE ADOPTION OF THE BUDGET GUIDELINES BY THE COUNCIL AND THEN THE RENEWAL EACH YEAR ABOUT 10 YEAR PLANS THAT WE DO INTERNALLY. AND THEN IF WE MOVE FORWARD WITH OUR PLANNING, WE HAND THE BUDGET OFF TO THE DEPARTMENTS. AND THIS IS WHERE THEY TELL US, UH, YOU KNOW, FOR THE MONTHS OF SPRING MONTHS WHAT THEY NEED, THEY TURNED THEIR BUDGET REQUESTS FOR NEW POSITIONS. THEY MOVE THINGS AROUND AND AFTER THAT, IT'S REVIEWED BY THE FUNNIEST DEPARTMENT AND THEN BECOMES THE CITY MANAGER'S BUDGET. AND THIS IS THE SAME MANAGER MEETS WITH ALL THE DEPARTMENTS MEETS WITH DISCUSSED THEIR THEIR THEIR PRIORITIES FOR THE YEAR WHAT THEY'VE TURNED IN AND HE SAID THE MANAGER ULTIMATELY PRESENTS A BUDGET TO YOU, WHICH WE'RE DOING TODAY AND THEN AT THAT POINT, IT BECOMES THE CITY COUNCIL'S BUDGETS WHERE WE ARE TODAY. UM AND IT'S YOURS AND THROUGH ADOPTION ON WE PUT SEPTEMBER 30TH THERE. THE BUDGETED OPTION THIS YEAR SCHEDULED FOR SEPTEMBER, 5TH.BUT SEPTEMBER 30TH IS FISCAL YEAR IN AND THEN ON OCTOBER 1. THE NEW FISCAL YEAR BUDGET KICKS IN SO. IN FORWARD HERE. HERE WE GO. SO REMEMBER THE PLANNING OF THE SECTION OF THE BUDGET? WELL, THAT I WAS JUST TALKING ABOUT THESE WORTHY GOALS IN THE STRATEGIES THAT ARE THE FIRST PART OF THAT CYCLE IS DEVELOPED AND AFFIRMED BY BY EACH OF YOU YEARLY PAUL HAS ALREADY MENTIONED THOSE THIS MORNING. IN FACT, THEY WERE MENTIONED VERY EARLY IN HIS OPENING REMARKS BECAUSE WE USE THEM WHEN WE'RE MAKING DECISIONS ABOUT EVERYTHING THAT GOES INTO OUR PROPOSED BUDGET. AND YOU'RE SETTING OF THEM REALLY KIND OF HELPS DRIVE OUR PROCESS AND ACTUALLY JUST KIND OF KICKS OFF THE BUDGET PROCESS. UM, ALSO MENTIONED HOW WE USE THE BUDGET AS A TOOL. UM, AFTER THE. SO AFTER THE GOALS ARE SET, WE MOVE FORWARD. AND THIS IS WE KEEP IN MIND THAT THIS BUDGET IS A THREE PART TOOL THAT FOR US TO USE THE OPERATE WITH THE FIRST PART IS HOW WE USE IT AS A POLICY TOOL. THIS IS THE COUNCIL PORTION OF THE TOOL, YOUR POLICY. YOUR GOALS AND STRATEGIES SET THOSE PRIORITIES THAT ALLOW US TO MOVE TO THE NEXT PART, WHICH IS THE MANAGEMENT. PORTION MANAGEMENT TOOL. THIS ALLOWS TO SEE MANAGER'S OFFICE AND DEPARTMENTS TO ALLOCATE RESOURCES TO OPERATE IN A MANNER TO MEET THOSE GOALS . SO ONCE WE HAVE A POLICY AND WE HAVE THE MEANS TO CARRY IT OUT, IN PART TWO WE MOVED TO PART THREE COMMUNICATIONS AT THAT POINT. THE BUDGET THAT'S DIRECTED BY POLICY AND CITY STAFF. UM, SETS FORTH THE TO ACCOMPLISH IT. WE USE IT TO COMMUNICATE TO TWO DIFFERENT GROUPS OF PEOPLE THAT WILL USE IT FOR THE NEXT YEAR. FIRST GROUP IS THE CITIZENS CITIZENS OF MCKINNEY. WE WANT OUR BUDGET TO TELL THEM WHERE WE'RE GOING. AND WHAT RESEARCH WAS WE? WE USED TO GET THERE. IN THE SECOND GROUP IS STAFF OURSELVES HERE. WE USE THIS TO TELL US EXACTLY WHAT WE'RE SUPPOSED TO ACCOMPLISH AND WHAT RESOURCES WE HAVE TO DO IT WITH. UM I MENTIONED ANOTHER PART OF THE BUDGET. PROTESTANT PLANNING PROCESSES ARE UPDATING OF OUR LONG TERM PLANNING INITIATIVES.
WE HAVE TWO THAT HELPED DRIVE A LOT OF WHAT YOU SEE TODAY. WE ALSO DO PLANNING FOR OTHER FUNDS , BUT MENTIONED TOO THAT THAT WE'VE MADE INTERNALLY. THE FIRST IS OUR GENERAL OBLIGATION DEBT SERVICE PLAN OUTLINES OUR TOTAL DEBT CAPACITY AND HELPS US MAINTAIN OUR I AND THAT'S RIGHT ALSO HELPS US PLAN. FOR ALL OF OUR LARGE CRP PROJECTS OUT IN THE FUTURE HELPS US PLAN WHEN WE NEED TO HAVE ELECTIONS AND WHAT? HOW MUCH WE CAN HAVE A BOND ELECTIONS FOUR. AND THEN WE ALSO HAVE A GENERAL FUND. PLANET WORKS, MARRIED HAND IN HAND WITH THE GENERAL OBLIGATION DEBT SERVICE PLAN, AND THEN WE PROVIDED TENURE PROJECTION OF KIND OF OPERATING REVENUES, EXPENSES AND WE TAKE INTO ACCOUNT NEW THINGS THAT WILL BE ADDING ON DURING DURING THAT 10 YEAR PROGRAM. ALSO PART OF THE PROCESS. COUNCIL AFFIRMS AND ADOPTS BUDGET GUIDELINES FOR ITS US EACH YEAR. UM, WE'VE TWEAKED THEM A LITTLE OVER THE YEARS, AND MANY OF THEM SEEM FAIRLY SIMPLE, BUT WE CONSIDER THEM TO BE KIND OF FUNDAMENTAL. THEY PROVIDE A BOX FOR US TO WORK INSIDE OF AS WE PREPARE THE BUDGET FOR YOU. UM HE YOU SEE IN FRONT OF YOU A FEW EXCERPTS FROM THAT LARGER DOCUMENTS. UM ON THE GENERAL FUND SIDE, FULLY FUNDED AND BALANCED BUDGET. WE TRY TO MAINTAIN A CONSERVATIVE TAX LEVY . WE MAKE SURE THAT WE STATE THAT WE WANT TO MAKE SURE THAT OUR PAY STRUCTURES ARE MET EACH YEAR AND THAT WE MAINTAIN MINIMUM FUND BALANCES. ON THE UTILITY SIDE. WE FOCUS ON THE LONG TERM FINANCIAL DEBATES SUSTAINABILITY OF ALL OF THOSE FUNDS. AND WE IMPLEMENT RATE ADJUSTMENTS AS RECOMMENDED, UH OR WITH THE APPROPRIATE RATE STUDIES AND ADJUSTMENTS. SO I KIND OF SAVED THAT RATE STUDY FOR LAST THERE THAT LAST POINT,
[00:20:01]
AND IT'S KIND OF A GREAT WAY FOR ME TO SEGUE INTO THE NEXT TOPIC , WHICH IS IT'S KIND OF A LITTLE OUT OF ORDER FOR HOW WE MIGHT NORMALLY PROCEED. NORMALLY, WE PROBABLY WOULD TALK ABOUT TAXES OR THE GENERAL FUND. BUT WE HAVE DAN JACKSON HERE FROM WILDEN AND SOME OF HIS TEAM ARE HERE THIS MORNING. TO TALK ABOUT OUR WATER AND WASTEWATER UTILITY AND I WANTED TO MAKE SURE WE HAD A GOOD IDEA OF WHEN HE COULD START SO HE COULD BE HERE ON TIME AND LEAVE IN A REASONABLE TIME, SO I KIND OF MOVED HIM UPFRONT PRESENTATION AND AFTER THEN TALKS A LITTLE BIT ABOUT OUR WATER AND WASTEWATER UTILITY. UM RATES A LITTLE BIT. WE WILL TAKE BACK OVER AND BEGIN WITH THE GENERAL FUND, THEN TALK ABOUT PROPERTY TAXES. BUT, DAN, THANKS FOR BEING HERE TODAY AND I'LL BACK OFF AND LET YOU TALK FOR A WHILE. THANK YOU, MARK. THANK YOU, MAYOR. MEMBERS OF THE COUNCIL. I AM DAN JACKSON, VICE PRESIDENT OF WILL FINANCIAL SERVICES. WE HAVE HAD THE PRIVILEGE OF BEING THE CITY OF MCKINNEY'S WATER AND WASTEWATER RAY CONSULTANTS FOR ABOUT THE PAST DECADE NOW LAST, UH SINCE ABOUT 2014. I'M HERE WITH MY COLLEAGUES, MR ELA ALEXANDROVICH AND MR DAN LANDING. MR LANDING HAS A PARTICULAR INTEREST IN THIS PRESENTATION BECAUSE HE'S ACTUALLY RESIDENT OF MCKINNEY. THE REST OF US ARE RESIDENTS OF THE DALLAS FORT WORTH AREA EVERY YEAR. I COME BEFORE YOU AND PRESENT TO YOU A RECOMMENDATION FOR THE WATER AND WASTEWATER RATES TO BE IMPLEMENTED BEGINNING WITH THE NEXT FISCAL YEAR, AS WELL AS A LONG TERM FORECAST BECAUSE THAT'S VERY IMPORTANT IN THE WATER INDUSTRY . IT'S IMPORTANT TO LOOK AT THE LONG TERM TRENDS. WHERE WHERE WATER COSTS GOING THAT ENABLES YOU TO PLAN FOR THE FUTURE AND BY PLANNING PROPERLY FOR THE FUTURE IN TERMS OF YOUR CAPITAL IMPROVEMENTS AND YOUR NORTH TEXAS COSTS THAT CAN HELP YOU MINIMIZE THE IMPACT OF ANY INEVITABLE RATE INCREASES ON YOUR ON YOUR RATEPAYERS. SO IN TODAY'S PRESENTATION. I'M GOING TO START JUST BY TALKING A LITTLE BIT OF A LITTLE BIT ABOUT WHAT'S HAPPENED SINCE LAST YEAR, THEN I'LL GO PRETTY PRETTY QUICKLY THROUGH THE NUMBERS AND PRESENT TO YOU OUR RECOMMENDATIONS FOR THIS YEAR.BUT I WANT TO START BY TALKING ABOUT WHAT HAS HAPPENED IN THE LAST YEAR. WHAT HAS IMPACTED THE CITY'S WATER AND WASTEWATER UTILITY? WELL LAST YEAR, YOU HAD AN EXTRAORDINARY HIGH AMOUNT OF WATER USAGE BECAUSE IT WAS SO HOT IN THE SUMMERTIME. THAT NUMBER WAS DECLINING THIS YEAR, AND SO WE'VE PROJECTED THAT THE NUMBER WAS GOING TO NOMINALLY DECLINED, BUT AS WE'VE ALL SEEN IN THE LAST COUPLE OF WEEKS, WITH THE TEMPERATURES BEING SO EXTRAORDINARILY HIGH WE MIGHT VERY WELL END UP WITH WATER USAGE AT RECORD LEVELS AGAIN THIS YEAR. UM, AUGUST AND SEPTEMBER ARE GOING TO BE THE KEY, SO, BUT WE'RE TRYING TO BE VERY CONSERVATIVE IN OUR APPROACH. MORE IMPORTANTLY, HOWEVER, THE NORTH TEXAS MUNICIPAL WATER DISTRICT WHO HANDLES ALL OF YOUR WATER AND WASTEWATER SERVICES, HAS PUT OUT A NEW, LONG TERM FORECASTS OF WHAT THEIR COSTS ARE GOING TO BE, AND UNFORTUNATELY, THEIR COSTS ARE GOING TO BE SIGNIFICANTLY HIGHER THAN THEY JUST FORECAST LAST YEAR, SO WE'VE GOT TO INCORPORATE THAT INTO THE RIGHT PLAN AS WELL. UM THE RIGHT PLAN ALSO INCORPORATES THE 2024 BUDGET. AND AS MR GRIMES INDICATED IN HIS OPENING REMARKS, UM INFLATION HAS HAD AN IMPACT ON NOT JUST THE GENERAL FUND. BUT THE ENTERPRISE FUND AS WELL. THE GOOD NEWS IS THAT THE INFLATION IS COMING DOWN. BUT THE BAD NEWS IS THAT FOR THE LAST COUPLE OF YEARS AND HAS HAD A ADVERSE IMPACT ON YOUR TOTAL FINANCES. FINALLY SPEAKING OF INFLATION, YOUR CAPITAL IMPROVEMENT PLAN COSTS HAVE REALLY INCREASED IN RECENT YEARS . THAT'S NOT UNUSUAL. WE'RE SEEING THIS WITH ALL OF OUR CLIENTS. AS A MATTER OF FACT, I HAD, UM CONVERSATION WITH ANOTHER CLIENT. JUST YESTERDAY.
YOU TOLD ME THAT THEIR C I P COSTS HAVE INCREASED BY 45% IN THE LAST TWO YEARS. COSTS ARE GOING UP CONSTRUCTION COSTS MATERIALS COSTS, ALL OF THAT RIPPLES THROUGH TO YOUR TOTAL CAPITAL COSTS, WHICH HAS TO BE FINANCED THROUGH YOUR RATES, SO THE COMBINATION OF INCREASING INFLATION NORTH TEXAS COSTS AND INCREASING CAPITAL IMPROVEMENT COSTS ARE GOING TO IMPACT YOUR LONG TERM RATE AND FINANCIAL PLAN. JUST A COUPLE OF PRETTY BACKGROUND SLIDES HERE. THIS CHART RIGHT HERE COMPARES WHAT CITIZENS HERE IN THE CITY OF MCKINNEY PAY FOR 10,000 GALLONS OF WATER AND 5000 GALLONS OF WASTEWATER SERVICE, WHICH IS A VERY NORMAL LEVEL. THAT'S JUST ABOUT THE AVERAGE USAGE LEVEL FOR A RESIDENTIAL FAMILY HERE IN THE CITY, AS YOU CAN SEE SOMEBODY WHO USES THAT AMOUNT PAYS $120 TO THE CITY OF MCKINNEY, AND THAT'S RIGHT ABOUT IN THE MIDDLE. OF THE OF THE SAMPLE. IT'S RIGHT AT THE STATE AVERAGE. THE STATE AVERAGES $116 AND AS YOU CAN SEE, MOST OF THE CITIES IN THIS AREA ARE AT OR ABOUT THAT RANGE, SO YOUR RATES ARE CONTINUE TO BE RIGHT IN LINE WITH WHAT PEOPLE PAY FOR WATER AND SEWER SERVICE HERE IN NORTH TEXAS. UM ONE OF THE KEY ASPECTS OF BOTH A CURRENT YEAR RATE PLAN AND A LONG TERM FINANCIAL PLAN IS WHAT KIND OF GROWTH DO YOU ANTICIPATE? WELL, GROWTH IS COMING IN PRETTY MUCH EXACTLY HOW THE CITY IS ANTICIPATED IT WOULD HAVE GROWN BY 12,000 ACCOUNTS IN THE LAST FIVE YEARS , AND WE'RE ANTICIPATING THAT YOUR ACCOUNTS ARE GOING TO CONTINUE TO GROW AT THAT PACE OVER THE NEXT DECADE. YOU HAVE 71,000 ACCOUNTS RIGHT NOW. AND WHERE I AM. WE'RE PROJECTING ABOUT THE YEAR 2033. YOU'LL HAVE 100,000 ACCOUNTS. SO THE GROWTH IS GOOD FOR A UTILITY IN THE
[00:25:04]
SENSE THAT MANY COSTS OF WATER SYSTEM OR FIXED, SO THE MORE COUNTS YOU HAVE, THE MORE CUSTOMERS HAVE TO SPREAD THOSE COSTS OVER AND A WELL RUN UTILITY CAN PROPERLY USE THAT GROWTH TO MINIMIZE THE IMPACT OF COST INCREASES. THIS IS A PROJECTION OF YOUR WATER USAGE, NOT JUST THIS YEAR'S PROJECTION , BUT LAST YEAR'S PROJECTION AS WELL. THE BAR CHARTS REPRESENT OUR HISTORICAL AND OUR LATEST FORECAST OF WATER USAGE. THE LINE WAS WHAT WE FORECAST LAST YEAR. AS YOU CAN SEE, YOU'RE YOU'RE SELLING MORE WATER THAN YOU ANTICIPATED LAST YEAR AND THAT DIDN'T EVEN TAKE INTO ACCOUNT THE LAST COUPLE OF WEEKS WHERE YOUR USAGE HAS BEEN SO MUCH HIGHER, SO WATER USAGE IS ROBUST WATER SALES. VERY ROBUST HERE IN THE CITY OF MCKINNEY.OKAY UM, NOW LET'S GO TALK QUICKLY ABOUT YOUR COST OF SERVICE. I THINK, AS WE ALL KNOW, CERTAINLY FROM MY PREVIOUS, UM UH, PRESENTATIONS TO YOU ALL. THE BIGGEST SINGLE FACTOR IN YOUR COSTS AS THE NORTH TEXAS MUNICIPAL WATER DISTRICT. YOU PURCHASE ALL YOUR WATER FROM THEM. YOU SEND ALL YOUR SEWAGE TO THEM TO BE TREATED NORTH TEXAS REPRESENTS BETWEEN 50 60% OF THE TOTAL COST OF WATER SERVICE HERE IN THE CITY. THE BAR THE PIE CHARTS HERE ON THE LEFT SIDE. IS YOUR WATER TOTAL AND ON THE RIGHT SIDE IS YOUR WASTEWATER TOTAL COST PROJECTED FOR THE UPCOMING FISCAL YEAR. 2024 WATER COSTS OF ABOUT 79 MILLION AND WASTEWATER COSTS OF ABOUT 60 MILLION. YOU CAN SEE THE NORTH TEXAS PIECE OF THE PIE IS MORE THAN ALL OF YOUR OTHER COSTS COMBINED. SO WHILE. WHILE SOLID MANAGEMENT AND CONSERVATION AND KEEPING EXPENSES DOWN IS ALWAYS VERY USEFUL AND VERY BENEFICIAL. NORTH TEXAS FOR THE MOST PART, IS GOING TO DRIVE THE NEED FOR RATE INCREASES IN THE FUTURE. WHY IS THAT IMPORTANT? BECAUSE NORTH TEXAS HAS, AS I SAID, IN MY OPENING REMARKS PUT OUT A NEW FORECAST OF THEIR 10 YEAR COSTS.
UM THE GOOD NEWS IS THAT THEY'RE THEY'RE FORECAST RATE INCREASE IS NOT GOING TO BE QUITE AS HIGH THIS YEAR, AS THEY ORIGINALLY SAID LAST YEAR, IT WOULD BE PROJECTING A 9% INCREASE THIS YEAR, AS OPPOSED TO LAST YEAR WHEN THEY SAID IT WOULD BE 11% WELL, I HOPE YOU ENJOYED THAT GOOD NEWS BECAUSE THAT'S THE ONLY GOOD NEWS WE'VE GOT. THE REST OF IT IS, AS YOU CAN SEE, FROM THIS CHART. NORTH TEXAS IS NOW PROJECTING THAT THEY ARE GOING TO INCREASE YOUR RATES BY BETWEEN 10 AND 15% EACH YEAR FOR THE NEXT FOUR YEARS. AND THAT IS SIGNIFICANTLY HIGHER THAN WHAT THEY JUST TOLD YOU LAST YEAR WOULD BE THEN HELPFULLY. BUT AFTER THE YEAR 2028 THE INCREASES WILL BE MUCH MORE MODERATE. BUT NORTH TEXAS IS LOOKING AT SOME VERY SIGNIFICANT INCREASES IN THE COMING YEARS. HOW SIGNIFICANT IS IT? WELL, THIS CHART RIGHT HERE COMPARES NORTH TEXAS IS FORECAST. AND LIKE I SAID, THEY PUT OUT EVERY YEAR THEY PUT OUT A 10 YEAR FORECAST. THE RED LINE SHOWS WHAT THEY SAID IT WOULD BE IN 2021. THEY SAID THAT BY THE YEAR 2031 THE RATE RIGHT NOW IS $3.39 PER 1000 GALLONS. NORTH TEXAS SAID IN 2021 THAT BY 2031 BEFORE DOLLARS AND 64 CENTS LAST YEAR, THEY SAID IT WOULD BE $6.16. NOW THEY'RE SAYING IT'S GOING TO BE 6 94 BY 2031. THE RATE RIGHT NOW IS 3 39, SO AS YOU CAN SEE, IT'S GONNA MORE THAN DOUBLE IN THE NEXT 10 YEARS. AND SO WE HAVE TO PLAN FOR THOSE INCREASES AND PUT THEM INTO THE RATE PLAN TO ENSURE THAT YOU CAN RECOVER THE COSTS THAT THEY INCUR TO YOU AND YOU CAN MINIMIZE THE IMPACT ON YOUR RATEPAYERS. UM THERE ARE ALSO INCREASING THEIR WASTEWATER COSTS BY BY MUCH GREATER EXTENT . THIS CHART RIGHT HERE COMPARES THEIR CURRENT AND THEIR 2022 PROJECTIONS FOR WHAT WASTEWATER COSTS WOULD BE. YOU CAN SEE. IT'S ABOUT EVEN IN 2024. BUT BY 2032, WE'RE NOW PROJECTING THAT YOU'RE WASTEWATER. TOTAL COSTS ARE GOING TO BE ALMOST $20 MILLION HIGHER. THEN WELL, THEN WHAT WAS JUST PROJECTED LAST YEAR. SO THE OTHER, YOU KNOW, IMPORTANT KEY IS OR I'M SORRY.
LET'S GET TO THE LET'S GET TO THE RIGHT PLAN SCENARIOS NOW. UM THE GOOD NEWS IS THAT WE'RE PROJECTING THAT OR WE'RE GOING TO RECOMMEND THAT THEY'RE YOUR 2024 RATE ADJUSTMENT. BE THE SAME AS WHAT WE TOLD YOU. IT WOULD BE LAST YEAR. I TOLD YOU LAST YEAR WE PROJECTED WHAT IT WOULD BE IN 2024. WE BELIEVE THAT BECAUSE NORTH TEXAS'S RATE INCREASE ISN'T QUITE AS MUCH.
THE FACT THAT YOU'RE SEEING IS A LITTLE HIGHER, OFFSETS IT AND YOU CAN HAVE THE SAME RATE INCREASE IN 2024, HOWEVER, IN FUTURE YEARS WE THINK YOU'RE RIGHT FORECASTS ARE GOING TO BE A LITTLE BIT HIGHER. AND THAT'S PRIMARILY DUE TO NORTH TEXAS AND THE C I P ONE OF THE BIG UNKNOWN MOBILE FACTORS RIGHT NOW THAT YOU HAVE TO CONSIDER IN FUTURE YEARS IS GOING TO BE THE 3 80 BYPASS. RIGHT NOW YOUR CAPITAL IMPROVEMENT PLAN FOR THE NEXT DECADE. THAT DOES NOT INCLUDE THE 3 80 BYPASS IS APPROXIMATELY $315 MILLION. THAT'S THE AMOUNT OF DEBT THAT YOU WILL REQUIRE TO
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FUND THE YOUR YOUR C I P IF YOU INCLUDE THE 3 80 BYPASS EXPENDITURES, THE TOTAL COST WILL BE 462 MILLION. SO IF YOU HAVE TO END UP FUNDING THE 3 80 BYPASS YOURSELF, YOUR CAPITAL EXPENSES WILL BE EVEN HIGHER THAN WHAT WE'RE PROJECTING AND YOUR RATES WOULD HAVE TO BE HIGHER. ALSO. THIS CHART RIGHT HERE. JUST SORT OF COMPARES. C I P WHAT WAS PROJECTED LAST YEAR $202 MILLION AND WHAT IS PROJECTED THIS YEAR, BOTH UNDER THE SIPHE NUTS CHIP BYPASS SCENARIOS, SO AS YOU CAN SEE, CAPITAL COSTS HAVE JUST GOTTEN A LOT HIGHER. YOU'RE NOT THE ONLY CITY DEALING WITH THIS . ALL OF OUR CLIENTS ARE DEALING WITH THESE SIGNIFICANT INCREASES IN SIPS, AND ALL OF THEM HAVE TO ADJUST THEIR LONG TERM RIGHT PLANS ACCORDINGLY. THIS CHART RIGHT HERE JUST SHOWS THAT IT'S GOING TO REQUIRE YOU TO ISSUE A LOT OF DEBT OVER THE NEXT FIVE YEARS TO PAY YOUR SIPPY NOW, ONE THING NOW IS TO KEEP IN MIND ABOUT CAPITAL IMPROVEMENT PLANS IS THEY REALLY REPRESENT AN INVESTMENT IN THE FUTURE OF THE CITY. IT'S NEVER EASY TO ASK RATEPAYERS TO CONTRIBUTE MORE, BUT WHAT THEY'RE REALLY DOING IS THEY'RE EURO USING THIS MONEY TO INVEST IN THE STREETS AND ALLEYWAYS OF THE CITY OF MCKINNEY. YOU'RE GOING TO BE BUILDING ASSETS NOW THAT ARE GOING TO NOT ONLY SERVICE YOU, BUT THEY'RE GOING TO SERVICE YOUR CHILDREN, YOUR GRANDCHILDREN AND MAYBE EVEN YOUR GREAT GRANDCHILDREN BECAUSE THESE ARE ASSETS THAT ARE GOING TO BE IN PLACE 40 50 60 YEARS FROM NOW, AND SO, UM, THAT IT MAY BE COLD COMFORT, BUT IT IS ALSO IMPORTANT FOR RATEPAYERS TO UNDERSTAND THAT BY MAKING THESE INVESTMENTS IN THE FUTURE, THEY ARE IMPROVING THE QUALITY OF SERVICE AND MAKING THE CITY A MORE ATTRACTIVE PLACE TO ATTRACT MORE ECONOMIC DEVELOPMENT. BUSINESSES ARE ATTRACTED TO CITIES THAT HAVE GOOD, SOLID SOUND AND RELIABLE WATER SYSTEMS . YOURS DOES NOW AND YOURS WILL CONTINUE TO HAVE THAT IN THE FUTURE. AS LONG AS YOU CONTINUE TO FIND THIS CAPITAL IMPROVEMENT PLAN. SO THIS CHART RIGHT HERE JUST SHOWS YOU THE TOTAL COST TO SERVICE PROJECTED OVER THE NEXT 10 YEARS FOR YOUR WATER SYSTEM. UM YOUR YOUR WATER AND WASTEWATER SYSTEM COST OF SERVICE. ASSUMING THAT YOU DO NOT FUND YOURSELVES THE 3 80 BYPASS, YOUR TOTAL COST OF SERVICE IS PROJECTED TO BE $139 MILLION IN THE CURRENT YEAR FOR THE WATER AND WASTEWATER SYSTEM OF THAT TOTAL 56% OF IT IS NORTH TEXAS. UM 17% OF IT IS OPERATING AND 15% OF IT IS DEBT SERVICE.BUT LOOK AT WHAT HAPPENS BY 2033. BY 2033, THE NORTH TEXAS PERCENTAGE OF YOUR TOTAL COST OF SERVICE GOES FROM 56% TO 67. THAT IS THE IMPACT OF THOSE SIGNIFICANT NORTH TEXAS INCREASES SO YOUR COST IS PROJECTED TO HIT GO FROM 139 MILLION TO 309 MILLION. THAT'S WHY WE RECOMMEND LONG TERM RATE PLAN REVIEWS BECAUSE THAT ENABLES YOU TO SEE WHAT IMPACT THIS HAS OVER THE LONG HAUL ON YOUR RATE PLAN. IF YOU IF THE 3 80 BYPASS COSTS ARE INCLUDED, AS YOU CAN SEE YOUR COSTS WOULD GO FROM 139 MILLION TO $319 MILLION . SO THE ANNUAL IMPACT OF THE 3 80 BYPASSED BY 2033 WOULD BE ABOUT AN ADDITIONAL $10 MILLION IN YOUR TOTAL COST OF SERVICE.
SO LET'S GO TO THE RIGHT PLAN. I'M JUST GOING TO QUICKLY SHOW YOU THE RATES HERE AND THEN I'LL SHOW YOU THE MORE IMPORTANT CHART, WHICH IS THE IMPACT ON AVERAGE CUSTOMER BILLS. UM, WE'RE GOING TO RECOMMEND THAT YOU PUT IN A NEW RATE PLAN EFFECTIVE IN OCTOBER, 23. WHERE YOU ADJUST YOUR MONTHLY MINIMUM RESIDENTIAL WATER CHARGE FROM $17.65 TO $18.70 JUST ABOUT A DOLLAR AND AS YOU CAN SEE, WE'RE RECOMMENDING AN INCREASE IN THE VOLUME RATE PER 1000 GALLONS AS WELL. WE RECOMMEND THE SAME PERCENTAGE INCREASE IN YOUR COMMERCIAL RATES. COMMERCIAL RATES. OF COURSE, THE LARGER THE METER YOU HAVE THE LARGER YOUR MINIMUM CHARGE, AND THAT'S WHAT MOST CITIES DO, BECAUSE LARGER METERS HAVE GREATER STRAINS ON THE SYSTEM. THAT IS THE RATE THAT WE RECOMMEND FOR THE YEAR. WE'RE ALSO SHOWING YOU FOR INFORMATION ONLY PURPOSES, THE OUR FORECAST OF WHAT YOUR RATES WOULD HAVE TO BE IN THE YEARS 2024 THROUGH 2027. YOU CAN SEE THAT THE RATE ADJUSTMENTS THAT ARE PROJECTED FOR THE FUTURE YEARS ARE VERY SIMILAR TO THE WATER RATE ADJUSTMENT PROJECTED FOR THIS YEAR. THIS IS YOUR IRRIGATION RIGHT ONCE AGAIN, SAME INCREASE FOR DONE FOR OCTOBER OF 2023 WITH THE SAME FORECAST FOR 2024. ON THE WASTEWATER SIDE, WE RECOMMEND A SLIGHTLY HIGHER INCREASE. FROM FROM THE MINIMUM CHARGE OF $22.75 TO 24 55 1 OF THE REASONS FOR THAT IS YOU DON'T QUITE HAVE AS MANY WASTEWATER ACCOUNTS AND YOU DON'T QUITE HAVE HAVE AS MANY WASTEWATER BILLING UNITS. SO FOR THAT REASON, WHEN COSTS GO UP IN THE WASTEWATER SYSTEM AND HAS A LITTLE BIT MORE OF AN IMPACT ON THE UNIT RATE ON THE VOLUME CHARGE. SO THIS HAS WE FOR YOUR RESIDENTIAL CUSTOMERS. WE INCREASE THE MINIMUM CHARGE BY ABOUT A DOLLAR AND A HALF AND THE VOLUMETRIC RATE WOULD GO UP BY ABOUT 50 CENTS PER 1000
[00:35:06]
GALLONS, AND AS YOU CAN SEE, THERE ARE SIMILAR INCREASES FOR THE REMAINING YEARS. SO THE KEY QUESTION IS. WHAT DOES THIS MEAN ? WHAT'S THE IMPACT ON AN AVERAGE RATEPAYER? WELL THIS IS PROBABLY THE MOST IMPORTANT CHART IN THE ENTIRE PRESENTATION BECAUSE THIS ANSWERS THAT QUESTION. THE VAST THE MAJORITY OF RESIDENTIAL CUSTOMERS USE 10,000 GALLONS OR LESS PER MONTH. I WOULD I WOULD ESTIMATE ABOUT 70% OF YOUR RESIDENTIAL BILLS OR 10,000 GALLONS OR LESS.SO LET'S LOOK AT THAT 10,000 GALLON USER. 10,000 GALLON USER RIGHT NOW PAYS $120.60 FOR THAT SERVICE. UNDER THIS RATE PLAN, THEIR BILL WOULD GO UP BY 7.7% OR $9.30 A MONTH THIS YEAR. IF YOU ONLY USE 5000 GALLONS YOUR YOUR BILL WOULD GO UP BY $7.10 THIS YEAR. THIS IS EXACTLY WHAT WE PROJECTED IT WOULD BE LAST YEAR. SO THIS IS THE SAME RIGHT PLAN THAT WE PROJECTED IN AUGUST OF 2022. YOU CAN SEE IN THE FUTURE YEARS. WE'RE PROJECTING VERY SIMILAR INCREASES ONCE AGAIN. WHEN NORTH TEXAS DOES THINK ABOUT IT. IT'S VERY SIMPLE MATH. NORTH TEXAS INCREASES YOUR RIGHT BY 11. 60% OF YOUR OF YOUR WATER COSTS. SO 11% TIMES 60. YOU KNOW YOU'RE GETTING YOU'RE RIGHT THERE IN THE 67% RANGE, AND THAT'S EXACTLY WHAT WE CAME OVER. NOW IT'S A LITTLE BIT MORE COMPLICATED THAN THAT. BUT THAT'S THE BASIC GIST OF IT. YOU CAN SEE WE'RE LOOKING AT 7% ADJUSTMENTS 7 TO 8% ADJUSTMENTS EACH YEAR FOR THE NEXT FOUR YEARS FOR THE AVERAGE HOMEOWNER FOR THE AVERAGE RESIDENTIAL CUSTOMER. IT'S A MOST OF THEM WILL SEE AN INCREASE OF ABOUT 7 TO $9 A MONTH. BASED ON WHAT THEIR USAGES COMMERCIAL CUSTOMERS. OF COURSE, YOUR AVERAGE COMMERCIAL CUSTOMER USES MORE WATER SO THEIR BILL WOULD GO UP BY MORE FROM A DOLLAR STANDPOINT, BUT FROM A PERCENTAGE STANDPOINT, IT WOULD BE PRETTY MUCH THE SAME. UM THIS CHART THIS FINAL CHART RIGHT HERE JUST SHOWS WHAT THE IMPACT WOULD BE IF YOU DECIDED TO OR IF YOU WERE HAD TO FUND THE 3 80 BYPASS, ALL OF YOURSELF. LET'S TAKE A LOOK AT THIS ONE OF THIS 10,000 GALLON USER AGAIN THERE BILL GOES 209 $29.90 RIGHT NOW. LAST YEAR, THE PROJECTION WAS IT WOULD HIT 100 AND $55 BY BY OCTOBER OF 27. NOW BECAUSE NORTH TEXAS'S INCREASES ARE SO MUCH HIGHER. WE'RE NOW PROJECTING THAT YOUR BILL WILL HIT $176.95 BY OCTOBER OF 2027 IF YOU HAVE TO THROW IN THE FUNDING FOR THE 3 80 BYPASS THE BILL WOULD GO TO ABOUT $191 SO THAT $15 DIFFERENTIAL IS ABOUT THE TOTAL IMPACT. ON A MONTHLY BASIS OF THE 3 80 BYPASS PROGRAM. IF YOU END UP FUNDING IT ALL THROUGH THE CITY. UM IN THE FIRST YEAR AND EVEN IN THE SECOND YEAR OF THE IMPACT IS DUE MINIMUS BECAUSE, UM, BECAUSE THE PROGRAM WOULD NOT ACTUALLY START TO BE FUNDED. YET IT WOULD JUST SORT OF ACCUMULATE OVER THE NEXT FEW YEARS. BUT YOU KNOW NEXT YEAR WHEN WE DO, THE NEXT UPDATE WILL HAVE A BETTER IDEA OF WHAT THE CITY'S TOTAL FINANCIAL OBLIGATION IS GOING TO BE REQUIRED RELATED TO 3 80 WILL BE ABLE TO GIVE YOU A BETTER PICTURE OF WHAT THE ULTIMATE IMPACT WILL BE. OBVIOUSLY IT'S NEVER EASY TO ASK PEOPLE TO PAY MORE. BUT, UM IT. THE KEY HERE IS TO UNDERSTAND THAT ALL THE CITIES THAT ARE BEING SERVICED BY NORTH TEXAS ARE LOOKING AT SIMILAR INCREASES BECAUSE ALL OF THEM ARE PAYING THE SAME AMOUNT OF NORTH TEXAS. SO IT'S NOT EASY TO DO. IT'S GOING TO BE DIFFICULT, BUT IT IS IN THE LONG TERM INTERESTS OF THE OF THE CITY TO ENSURE THAT NORTH TEXAS CONTINUES TO PROVIDE QUALITY WATER SERVICE AND CONTINUES TO HAVE THE RESOURCES AVAILABLE TO SERVICE THE GROWTH IN THIS AREA.
SO UM, UH, SO WITH THAT I'D BE HAPPY TO ANSWER ANY QUESTIONS YOU HAVE AT THIS TIME. THEN I KNOW NORTH TEXAS HAS ONE NEW LAKE COMING ON. I THINK BOTH DARK AND THEN THE OTHER ONE IS THROUGH THE NORTH THAT I CAN'T REMEMBER. WHAT IS RALPH HALL IS ANOTHER DISTRICT IS ANY OF THIS ANTICIPATING IN NEW RESERVOIR LAKE? I DON'T BELIEVE SO. YET THEY'RE NOT YET THERE. THERE HAS BEEN. THERE'S BEEN DISCUSSION. TALK ABOUT THAT. IT WOULDN'T SURPRISE ME IF THEY ANNOUNCE THAT THE NEW LAKE IS GOING TO BE REQUIRED. AND IF THAT HAPPENS, THEN THE NUMBERS WILL CHANGE AGAIN. THANK YOU. QUESTIONS JUST LIKE, SAY, THANK YOU FOR THE CHEERY OUTLOOK. THANK YOU VERY MUCH. THANK YOU. HOLLOWAY BACK TO YOU. THANK YOU. OKAY SO WE'LL KIND OF MOVE FORWARD BACK TO OUR REGULAR SCHEDULE HERE, AND I WANT TO SET THE KIND OF SET THE STATE FOR THE REST OF OUR PRESENTATION AND GIVE YOU A QUICK OVERVIEW OF A COUPLE OF TOPICS. THAT WE WILL BE
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DISCUSSING KIND OF MOORE'S AS THE MORNING GOES FORWARD, ALSO, THIS LITTLE SECTION SERVES AS A SPOILER FOR SEVERAL OF THE TOPICS THAT THE TREVOR'S ARE GOING TO TAKE IT WITH YOU GUYS IN IN IN A FEW MINUTES. SO AS YOU REMEMBER BACK IN APRIL, WE HAD A PUBLIC INPUT HEARING, UM, TO KIND OF HELP KICK OFF THE BUDGET FOR THE FOR THIS FISCAL YEAR AS PART OF THAT WE ALSO HAD AN ONLINE SURVEY TOOL. IT WAS A VIRTUAL TOWN HALL TO LET CITIZENS TELL US WHAT THEIR PRIORITIES FOR THE BUDGET ARE. UM THOSE RANKINGS AND COMMENTS OR ARE AVAILABLE ONLINE. UM ANY OF YOU WANT TO SEE THOSE? WE CAN DEFINITELY MAKE THOSE AVAILABLE TO YOU. UM THE CONCEPT HERE IS THE LOWER THE NUMBER, THE HIGHER THE PRIORITY. THE NUMBERS THAT YOU SEE ON THE BAR. REPRESENT THE OVERALL RANKING ONE THROUGH 10 OF THE OF THE SUBJECTS AND THEN THE OVERALL AVERAGE OF THE NUMBER IS REPRESENTED BY THE BAR ITSELF. SO AS IT GOES OUT UM CONSISTENTLY CONSISTENTLY EVERY YEAR. THE TOP TWO PRIORITIES ARE THE SAME STREETS AND PUBLIC SAFETY. PUBLIC SAFETY. FIRST STREETS BEING SECOND, UM, THIS BUDGET IS ALIGNMENT IS IN ALIGNMENT WITH THOSE PRIORITIES AS YOU'LL SEE AS WE GO FORWARD. WHAT WE WHAT WE PUT FORWARD TO YOU MATCHES THESE PRIORITIES AND UM I WILL SAY THAT THERE WERE 182 COMPLETIONS OF THIS ONLINE THIS YEAR. THERE WERE 150 LAST YEAR AND 153 THE YEAR BEFORE THAT. AND SINCE WE KICKED THIS OFF ABOUT FIVE OR SIX YEARS AGO, I THINK THE MOST WE EVER HAVE AROUND 300. SO WE HAVE A LITTLE BIT MORE THIS YEAR, SO THAT'S GOOD NEWS LIKE TO GET THOSE NUMBERS BACK UP A LITTLE BIT. UM MARK THAT I JUST INTERJECT. THIS IS JUST A REMINDER. THIS IS THE THIS IS THE BUDGET EXERCISE. IT IS A SELF SELECTED PEOPLE SELF SELECTED. THIS WAS NOT RANDOMLY SAMPLED. THIS IS NOT THE NATIONAL CITIZEN SURVEY THAT WE PRESENTED TO YOU RECENTLY. ALTHOUGH IF YOU LOOK AT THOSE SURVEY RESULTS, AND YOU LOOK AT THE PRIORITIES THROUGH THE SCIENTIFIC SURVEY, THEY'RE NOT THAT DISSIMILAR. THEY HIGHEST PRIORITIES. INVARIABLE IN EVERY COMMUNITY I'VE EVER BEEN PUBLIC SAFETY AND PUBLIC WORKS ARE TYPICALLY THE TWO HIGHEST PRIORITIES, PARKS AND RECS RIGHT THERE, BACK TO THE NUMBER THREE NUMBER FOUR KIND OF RELATED, UM , SO IT IS INTERESTING TO SEE THAT BUT THIS IS JUST JUST TO BE CLEAR. THIS IS THE ONE THAT WAS THE SERVING. THERE WAS A OPEN TO FOLKS TO DO THE BUDGET EXERCISE, AND THAT WAS A SELF SELECTED NONSCIENTIFIC SURVEY. YES USUALLY THE WORD HOUSE GOING NONSCIENTIFIC. SO WITH THAT, UM JUST WANT TO TALK ABOUT THE BUDGET OPPORTUNITIES THAT WE SEE ARE IN THE IN THE SOME OF THE BIG BIG PICTURE ITEMS. SO FIRST THIS BUDGET THAT IS BEING PROPOSED BY CITY MANAGER'S OFFICE TODAY. WILL DECREASE THE PROPERTY TAX RATE BY THREE CENTS TO 4 TO 7513. UM THIS REPRESENTS THE RIGHT? NO NEW REVENUE PLUS 2.34. WE WILL TALK AT LENGTH ABOUT THE TAX RATE HERE IN A FEW MINUTES AND HOW WE GET TO THIS NUMBER, UH, KEPT THIS NEXT BULLET POINT IN HERE. SALES TAX REMAINS STRONG. WE'VE SEEN EXTRAORDINARY GROWTH IN IN PREVIOUS FISCAL YEARS. BUT THIS FISCAL YEAR FOR SALES TAX, WE'VE SEEN SOME LEVELING AND SOME CONSISTENCY IN THOSE NUMBERS. WE'VE LEVELED OUT AT ABOUT 5% GROWTH RATE. SO WE FEEL WE'LL TALK A LITTLE BIT ABOUT OURSELVES TEXT BUT FORECAST FOR THE YEAR BUT I'LL GO AHEAD AND ONCE AGAIN SPOIL THAT. IT'S GONNA BE A LOT OF 5% BECAUSE WE'RE STARTING TO SEE THAT TREND. UM THIS BUDGET WILL PROVIDE FOR STEP INCREASES FOR EMPLOYEES AND FISCAL YEAR 24.ALSO THE THIS IS GENERAL GOVERNMENT AND THEN POINT STEP INCREASES ALSO FOR THE SWORN PERSONNEL. YOU WE CONTINUE TO FUND THE STREET STREET MAINTENANCE BOTH IN THE GENERAL FUND PORTION. UM WE HAVE THOSE NUMBERS A FEW YEARS AGO, AND WE ALSO HAVE UM, UM MORE GOING TOWARDS CRP, NOT FOR MAINTENANCE , BUT FOR STREET RECONSTRUCTIONS AND REHABS. ON THE STAFFING SIDE, YOU'RE GOING TO SEE AN EMPHASIS ON PUBLIC SAFETY, POLICE AND FIRE DEVELOPMENT SERVICES AND SEEING INCREASES ALONG PARKS AND RECREATION. PUBLIC WORKS IN ALL THE FUNDS THAT PUBLIC WORKS TOUCHES WE'RE SEEING INCREASES THE STAFFING THERE AND THEN SOME, AND SOME SIGNIFICANT INCREASES IN OUR WATER AND WASTEWATER STAFFING. UM I JUST WANTED TO GIVE YOU AN UPDATE DO THIS EVERY YEAR WHERE WE STAND ON THE ISSUANCE OF OUR DEBT FOR OUR PROJECTS FROM OUR 2019 BOND PACKAGE. AS YOU CAN SEE, WE'VE MADE GREAT PROGRESS ON THIS PACKAGE. UM THE PUBLIC SAFETY FACILITIES WE'VE ISSUED, MAYBE JUST ISSUED QUITE A SUM FOR THE FOR THE NEW FIRE
[00:45:05]
HEADQUARTERS BUILDING. WE WERE AUTHORIZED 75 MILLION WE'VE ISSUED JUST OVER 31 MILLION TO DATE. ON THE MUNICIPAL COMPLEX. WE'VE ISSUED ALL OF THOSE DOLLARS AND PUT TOGETHER A PACKAGE TO FULLY FUND THE NEW CITY HALL ON THE PARKS AND RECREATION SIDE. 91 MILLION OR AUTHORIZED. WE'VE ISSUED JUST OVER HALF OF THAT OR RIGHT AT HALF OF THAT PUBLIC WORKS FACILITY. YOU'RE GOING TO SEE SOME SOME MOVEMENT ON THIS IN THE NEXT FEW FISCAL YEARS. WE'VE ISSUED HALF OF THOSE DOLLARS AND AS WE MOVE TO RENOVATE THE SOUTH CAMPUS WILL BE ISSUING MORE DOLLARS, BOTH FROM THE WATER AND WASTEWATER SIDE AND THE GENERAL FUND SIDE. ON STREETS IMPROVEMENTS WE HAVE ALMOST WE'VE WE'VE DONE ABOUT 65% OF THE AUTHORIZED AMOUNTS CAN TELL YOU THAT ONE OF THE THINGS WE TOUCHING ON THE CRP SECTION, AND PAUL PAUL MENTIONED THAT WE MAY NEED TO CONSIDER HAVING ANOTHER BOND ELECTION. WE WILL BE ISSUING MOST OF THE AUTHORIZATION FOR STREETS IN FISCAL YEAR 24. AND EXPIRING ALL OF THOSE INTO FISCAL YEAR 25 SO YOU'RE GOING TO SEE MOST OF THESE BOND ISSUANCES. BUT DONE THE 3 50 WITHIN THE NEXT TWO FISCAL YEARS. WE'RE GOING TO WE'RE GOING TO BE RUNNING OUT OF AUTHORIZATIONS ON THE GENERAL OBLIGATION SIDE. SO WITH THAT, UM, THAT KIND OF SETS THE STAGE WHERE WE'RE GOING. I'M GOING TO LET, UM WE'VE WE'VE SAID AS THIS TRADITION SEVERAL TIMES, BUT AS IS TRADITION THIS MORNING, I'M GOING TO LET TREVOR MINIATURE TALK ABOUT PROPERTY TAX AND VALUES FOR A LITTLE WHILE. THANK YOU, MR HOLLOWAY. REAL QUICK. I JUST WHEN I ASK EVERYBODY GOOD DO WE NEED TO TAKE A SHORT BREAK OR ANYTHING LIKE THAT BEFORE WE GET GOING? OKAY, LET'S KEEP GOING ALREADY. YES MR HALLWAY MENTIONED. WE'RE GOING TO TALK PRIMARILY IN THE NEXT FEW SLIDES ABOUT THE VALUATIONS ACROSS THE CITY IN ADDITION TO THE TAX RATE, AND, UM COMPARISON TO REGIONAL CP. I NUMBERS. TO GIVE YOU THE HIGH LEVEL VIEW. HERE YOU SEE A 10 YEAR CHART OF THE VALUATION GROWTH ON THE ORANGE BARS FROM FISCAL 15 TO FISCAL YEAR 24 AS PAUL MENTIONED IN HIS OPENING COMMENTS. WE'VE SEEN ABOUT $4 BILLION INCREASE IN TOTAL ASSESSED VALUATION YEAR OVER YEAR WILL BREAK THAT DOWN.BY GENERAL TYPE HERE IN THE NEXT COUPLE SLIDES, HOWEVER. A KEY FACTOR TO POINT OUT IS THE INVERSE RELATIONSHIP WITH THE VALUES HAVE TO THE TAX RATE. SO WHILE. THE SHIFTING OF THE TAX RATE DOWN AND YEARS. 15 THROUGH 18 WAS FAIRLY TEPID OVER THIS 10 YEAR PERIOD. YOU CAN START TO SEE THAT INVERSE RELATIONSHIP PRESENT ITSELF FAIRLY WELL WITH THE PROPOSED TAX RATE THAT'S BEFORE YOU IN TODAY'S WORKSHOP. CROSS COLLIN COUNTY WITH OUR LARGER SISTER CITIES. THIS IS THE GENERAL MAKEUP OF THOSE SAID VALUES IN FRISCO, ALLEN COLLIN COUNTY AT LARGE AS WELL AS MCKINNEY. WE MOST OF THEM WERE MOST LIKE IN OUR VALUATION MIX THE CITY OF ALAN. HOWEVER WE HAVE A LITTLE MORE COMMERCIAL, LITTLE LESS RESIDENTIAL. YOU'LL SEE COLLIN COUNTY AT LARGE, LITTLE LESS RESIDENTIAL A LITTLE MORE COMMERCIAL. THIS IS JUST A BIT OF AN O. G S SLIDE TO KIND OF SEE WHERE WE ARE APPLES TO ORANGES, SO TO SPEAK WITH OUR SISTER CITIES. TAKE SOME TIME ON THE SLIDES. IT'S WHAT I ALWAYS LIKE TO SAY IS MY FAVORITE SLIDE OF THE PRESENTATION. IT GENERALLY SHOWS THE MAKEUP ON A YEAR OVER YEAR SNAPSHOT BASIS FOR THE LAST 10 YEARS OF WHERE THE ASSESSED VALUES BY TYPE HAVE LANDED. YOU'LL SEE THE LARGEST PORTION OF OUR ASSESSED EVALUATION MIX IS RESIDENTIAL. THAT'S BEEN THE CASE IN ALL YEARS, BUT SPECIFICALLY OVER THE LAST TWO YEARS DUE TO THE AMOUNT OF VALUATION OF EXISTING AND NEW HOMES, SITTING THE GROUND INCREASE THAT'S TAKEN A LARGER BITE OF THE APPLE. BUT THEN, UM AS WELL SHOW PIECE BY PIECE. IN THE NEXT FEW SLIDES, EACH ONE OF THE CATEGORIES HAS INCREASED SUBSTANTIALLY OVER THE LAST FEW YEARS. OFTEN WE TALK ABOUT A 60 40 MIX OR 70 30 MIX OF RESIDENTIAL VERSUS COMMERCIAL.
WE'RE STILL IN THAT 70 30 RANGE, BUT WE DO YOU SEE WHEN THE VALUATIONS INCREASED SIGNIFICANTLY AS WE'VE EXPERIENCED OVER THE LAST 2 TO 3 YEARS, REALLY DECADE IF YOU LOOK AT IT ON A LONG TREND. THAT EATS INTO THE COMMERCIAL, BUT AS WE'LL SEE ON THE WHEN THE COMMERCIALS CALLED OUT BY ITSELF THAT NO WAY MEANS THAT COMMERCIAL IS NOT GROWING. IN
[00:50:01]
FACT, COMMERCIALS GROWING AT A GREATER EQUIPPED THAN IT EVER HAS IN HISTORY OF MCKINNEY. JUST AS A SIDE NOTE. WHY THAT MAYBE I MENTIONED LAST YEAR THAT COLLIN COUNTY, ACCORDING TO THE CENSUS, WAS THE SECOND FASTEST GROWING COUNTY IN THE UNITED STATES. THIS YEAR. WE'VE TEMPERED THAT A LITTLE BIT. WE'RE NOW ONLY THE THIRD FASTEST GROWING COUNTY IN THE UNITED STATES. IN THE STATE OF TEXAS. IN GENERAL, WE HAVE SIX EXCUSE ME. SIX OF THE 10 FASTEST NUMERIC GROWING COUNTIES , AND WE ALSO HAVE FIVE OF THE 10 FASTEST PERCENTAGE GROWING COUNTIES. NONE OF THOSE OVERLAP , SO THOSE ARE 11 DIFFERENT COUNTIES IN THE STATE OF TEXAS THAT ARE ON THE TOP 10 LIST ACROSS THE NATION. PEOPLE ARE MOVING HERE. IN ADDITION, COLLIN COUNTY HAS THE SECOND LARGEST RECEIVER OF NET DOMESTIC MIGRATION, SO PEOPLE ARE COMING FROM DIFFERENT COUNTIES INTO COLLIN COUNTY. UH AS PEOPLE MOVE IN, DEMAND GOES UP AS THE MAN GOES UP VALUES RESPOND ACCORDINGLY. WHICH LEADS TO THIS SLIDE. YOU HAVE AN INFLUX OF POPULATION THE VALUES OF THE HOME TO ADDRESS THAT INFLUX OF POPULATION RESPOND ACCORDINGLY. YOU'LL SEE THAT WE HAVE A LARGE INCREASE LAST YEAR WHEN THE APPRAISAL DISTRICT REDID THEIR CALCULATIONS APPLIED SOME UPDATED FIGURES TO WHAT SINGLE FAMILY PROPERTIES WERE WORTH. AND THEN THAT HAS CARRIED OVER INTO THIS YEAR WITH WHAT MR HOLLOWAY MENTIONED EARLIER ABOUT A 15% INCREASED EVALUATIONS ON SINGLE FAMILY UNITS. SIMILAR TREND FOR MULTI FAMILY. WE'VE ALSO IN BOTH SINGLE FAMILY AND MULTIFAMILY SIGN HAD NEW DEVELOPMENTS THAT OCCUR THAT ATTRIBUTE TO THIS NUMBER AS WELL. I THINK IN 2022 WE WERE SOMEWHERE IN THE BETWEEN SINGLE AND MULTI FAMILY UNITS PUT ON THE GROUND AND 3000 RANGE. SO NOT ONLY IS IT THE HOUSES THAT HAVE BEEN ON THE GROUND, INCREASING IN VALUE THAT THOSE INVESTMENTS GOING ON, BUT IT'S ALSO A NEW DEVELOPMENT HITTING THE STREETS. AS I MENTIONED EARLIER IN NO WAY DOES THAT MEAN THAT COMMERCIAL VALUES AREN'T GROWING, UM, FOR THE PAST FIVE YEARS WE HAVE HOVERED AROUND 10% YEAR OVER YEAR AND COMMERCIAL VALUATION GROWTH. IT'S PRIMARILY ATTRIBUTABLE TO THE ACTIVITY THAT YOU SEE AT 3 80 HARDEN FORCES HARDEN THAT YOU SEE ALONG THE 1 21 CORRIDOR EXPANSIONS THAT HAVE OCCURRED OVER ON AIRPORT ROAD WITH THAT MAJOR USER. AND ALONG 3 80 WITH ONE OF THE MAJOR USERS OF 3 80 SO WHILE YOU SEE THE TOTAL MIX OF EACH ONE OF THOSE TYPES CALLED OUT IN THE FIRST SLIDE ABOUT ASSESSED VALUATION. I ALWAYS WANT TO POINT OUT, UM THAT YOU HAVE TO DIG INTO EACH ONE OF THOSE TYPES SPECIFICALLY TO GET THE FULL STORY. MCKINNEY'S ENJOYING PHENOMENAL GROWTH IN ALL OF ITS SECTORS. THAT SAID. WE DO RUN SHORT ON LAND AS LAND VALUE. EXCUSE ME AS LAND STOCK GOES DOWN, THE VALUES GENERALLY GO UP . THERE WAS A SLIGHT TREND OF LAND VALUES BEING A SMALLER PERCENTAGE OF THE TOTAL. AND THAT WILL CONTINUE TO HAPPEN, HOWEVER, AGAIN WHEN THE APPRAISAL DISTRICT REALLOCATES THEIR EVALUATION FOR WHAT SINGLE FAMILY AND MULTI FAMILY AND VERTICAL PROPERTY IS, THEY ALSO DO AN EVALUATION ON WHAT THE HORIZONTAL PROPERTY WORTH IS TWO. SO WE SAW THAT RE CALCULATION FROM THEIR OFFICES HITTING THE BOOKS FOR US IN FISCAL YEAR 23, WHICH WE TALKED ABOUT A LITTLE BIT LAST YEAR, SO LONG DIG INTO TOO MUCH. HOW OLD IS ALL THAT EFFECTIVE TAX RATE? EACH YEAR. WE WANT TO SHOW YOU WHAT'S HAPPENING SPECIFICALLY IN THE LAST COUPLE OF YEARS BECAUSE OF THE RAPID INFLATION THAT WAS OCCURRING, BUT WE STARTED THIS BACK IN 2018 TO GIVE A COMPARISON OF WHAT THE RECOMMENDED TAX RATE FROM THE MANAGER'S OFFICE TO THE COUNCIL WAS IN COMPARISON TO WHAT ARE REGIONAL INFLATION NUMBER WAS YOU'LL SEE IN FISCAL YEAR 19 WHEN COMPARED TO THE CALENDAR. YOU'RE 18. WE WERE RIGHT 1 TO 1, FOR THE MOST PART. TO SHOW THAT ARE OPPOSED TAX RATE. NO NEW REVENUE RATE. IF YOU WILL WAS RIGHT IN LINE WITH INFLATION, AND THEN OVER THE COURSE OF THE LAST FEW YEARS WE HAVE EXISTED IN A RAPID INFLATION ENVIRONMENT AND HAD TO TEMPER THAT SOMEWHAT, UM THIS YEAR IS NO DIFFERENT.THE EXCUSE ME. THE INFLATION RATE IS RIGHT AT 5% HOWEVER, THE PROPOSED TAX RATE ABOVE NO NEW REVENUE IS 2.34% AS A REMINDER. UM WE HAVE STATUTORY AUTHORITY TO GO TO 3.5% AND THEN WE ALSO HAVE WHAT'S CALLED THE BANK INCREMENT FOR YEARS IN THE PAST, THAT WE DIDN'T GO TO 3.5. THAT WE COULD TAP INTO. THIS IS WELL BELOW THE 3.5% OBVIOUSLY, WE'RE NOT USING THE INCREMENT EITHER.
UM ALL THAT SAID YOU. YOU CAN SEE HERE THE REPRESENTATION OF WHAT THE PROPOSED TAX RATE IS ABOVE NO NEW REVENUE IN COMPARISON TO HISTORICAL CP RATES. WE HAVE TRIED TO BE
[00:55:04]
MEASURED IN OUR APPROACH WITH THE TAX RATE, OBVIOUSLY, FINES AND FEES, THINGS LIKE SALES TAX BRIDGED THE GAP BETWEEN THOSE TWO AREAS OR THE BIG WHITE SPACE THAT YOU SEE ON THE SCREEN, SO IT'S NOT THAT WE ARE HAMSTRINGING OURSELVES. WE HAVE OTHER REVENUE STREAMS THAT ALLOW US TO OVERCOME THAT GAP. TREVOR CANNON DIRECTOR. THE QUESTION WE'RE USING CP AND I GET IT BECAUSE CPS WOULD EVERYBODY SEES ON THE NEWS. BUT CP TO ME DOESN'T SEEM LIKE A VERY GOOD MEASUREMENT WHEN WE'RE TALKING ABOUT FOR THE CITY. YOU KNOW, IT SEEMS TO ME JUST CORRECT ME IF I'M WRONG ON ANY OF THIS, THAT THE THINGS THAT REALLY AFFECT OUR COSTS OR LABOR, PARTICULARLY AMONGST WORN OFFICERS, WHICH THERE'S MORE DEMAND FOR THAT STEEL, CONCRETE FUEL VEHICLES, THINGS LIKE THAT. HEALTH CARE. IF I'M RIGHT ABOUT ANY OF THAT. DO WE HAVE ANY HANDLE ON WHAT THE INFLATION HAS BEEN ON THOSE COMPONENTS? LEAVING CP ON THE SIDE OF THE TABLE FOR A MOMENT.IT JUST SEEMS TO ME THAT THOSE THINGS HAVE THE INFLATION RATE ON THOSE THINGS HAS BEEN A BIT HIGHER. THAN WHAT CPI HAS SHOWN OVER THE LAST COUPLE OF YEARS. AND THE SENTIMENTS CORRECT THAT YOU'RE PRESENTING. I WOULD SAY THAT IT'S STILL A GOOD METRIC FOR US. I'D ALSO POINT OUT THAT THIS IS REGIONAL CPD, SO IT DOESN'T TAKE INTO EFFECT. WHAT'S HAPPENING IN THE NORTHEAST OR OUT WEST. IT'S THE DALLAS FORT WORTH ARLINGTON NUMBER. SO IT'S VERY CONCENTRATED INTO OUR SPORT WORTH ARLINGTON NUMBER JULY TO JULY, I BELIEVE IS CONVINCED THAT THIS WAS MADE MADE HIM A IS THE ONE THAT WE REALLY HONE IN ON TO TRY TO GET THE MOST REGIONAL ECONOMIC VIEW OF WHAT'S HAPPENING IN OUR BACKYARD. THE OTHER THING I WOULD SAY IS WHILE THOSE FACTORS DO FLUCTUATE WAY MORE THAN JUST TRADITIONAL CP. I AT THE AT THE BREADTH OF WHAT OUR TOTAL BUDGET IS IN THE 6 TO $700 MILLION RANGE. THE GENERAL FUND BUDGET BEING $200 MILLION. IT'S STILL A GOOD SMOOTHING INDICATOR TO TELL US WHERE WE'RE AT. UM ALL OF YOUR POINTS ARE STILL CORRECTED. WE ARE ENJOYING INCREASED LABOR COSTS WHEN IT BONDS TO THE LABOR THAT WE HAVE , BUT THEN ALSO INCREASED MATERIALS COSTS AND CONSTRUCTION INCREASED FUEL COSTS OVER THE PAST COUPLE OF YEARS. UM HOWEVER , WE STILL CCP IS MAYBE THE BEST SMOOTHING NUMBER TWO. COMPARED TO IN RELATION TO ADOPTING THE CITYWIDE TAX RATE. WHY IF IT'S IF CPS MEASURING THINGS THAT ARE NOT REALLY AFFECTING US AS MUCH . WHY IS THAT WHAT WE USE? I WOULD SAY, BECAUSE THEY BROUGHT THE BROAD SPECTRUM OF WHAT THE BUDGET TOUCHES ISN'T JUST IN UH , TO USE THE EXAMPLE OF PUBLIC SAFETY. IT ISN'T JUST IN OUR CONSTRUCTION PROJECTS. SOMETIMES WE USE DEBT TO ACCOMPLISH THOSE CONSTRUCTION PROJECTS. THAT THE MEASURE OF WHERE THAT INFLATIONARY NUMBER IS IN COMPARISON TO THE TAX RATE THAT WE PRESENT TO YOU IS A MORE FELT NUMBER FOR WHAT THE CITIZENS EXPERIENCE FROM THEIR PERSPECTIVE. THE TAX RATE WALLETS ONE ASPECT TO CREATE THE REVENUE STREAMS THAT GIVE US THE FINANCES THAT WE NEED TO RUN THE CITY. UM IT'S DIRECTLY CORRELATED TO WHAT A GENERAL CITIZEN IS GOING TO EXPERIENCE IN THEIR DAY TO DAY LIFE WHILE YES IT IS WHAT WE USE TO ACCOMPLISH OUR GOALS. AS A CITY ENTITY. IT'S THE REVENUE STREAM THAT'S MOST DIRECTLY ASSOCIATED WITH THE CITIZEN AT THE HOME. YEAH I WAS JUST GONNA SAY THE BEST TRANSLATION FOR WHAT DOES THIS MEAN TO THE RESIDENTS? THEY LOOK AT CPR, BUT I THINK I THINK THE POINT THAT IS BEING MADE IS THAT AND I THINK IT'S IMPORTANT FOR GENERAL PUBLIC. IS THAT UM, AS AS PATRICK SAID, THE ITEMS THAT IMPACT OUR BUDGET HEALTHCARE LABOR C P I C I P PROJECT MATERIALS CONSTRUCTION COSTS THOSE KINDS OF THINGS WHEN WE ARE WELL BELOW, UM THE CPI INFLATION RATE. IF WE LOOK AT 8.39 AND 23, THOSE THINGS ARE REALLY IMPACT US. WE'RE RECOVERING MORE IN THE 15 TO 16% RANGE, SO I THINK THE POINT IS TRYING TO BE MADE. IT SHOULDN'T BE LOST. IS THAT OUR WHEN WE'RE LOOKING AT A RATE OF INCREASE OF 2.4% IN A CPI INFLATION RATE AT 4.7 TO THE ITEMS ARE REALLY ARE IMPACTING OUR CITY ARE PROBABLY CLOSER TO SEVEN OR SEVEN, A HALF PERCENT INFLATION RATE, AND I THINK THAT'S AN IMPORTANT THING TO NOT GET LOST IN THE GENERAL PUBLIC THAT, UM THE CHALLENGES WE HAVE AS A CITY. ARE ARE ARE ARE BEING MET. EVEN ABOVE AND BEYOND WHAT ONE MIGHT AND, UH ASSUME WHEN THEY LOOK AT JUST C P. I THAT IS WHAT I'M GETTING AT. AND A THINK THAT'S A VALID DEFINITELY VALID WAY TO LOOK AT IT, AND WE CAN CERTAINLY SHOW YOU GUYS SOME DIFFERENT, DIFFERENT INFLATIONARY MEASURES. IN THE FUTURE. BUT THAT'S THAT'S PAUL AND TREVOR OF INDICATED.
THIS ONE. THIS ONE MAKES THE MOST SENSE. I JUST THINK IT'S AN IMPORTANT FACT VALID TO SHOW HOW
[01:00:06]
WE'RE DOING COMPARED TO SOME OF THOSE OTHER THINGS, TOO, BECAUSE YOU'RE ABSOLUTELY RIGHT. AND I DON'T HAVE THE CONSTRUCTION NUMBER THIS YEAR. YOU PROBABLY, UH, A LITTLE MORE AWARE OF IT THAT I AM 20% IT WAS. IT WAS 15 AND 20% 2 YEARS BEFORE THAT, AND THAT'S THAT GOES BACK TO EXACTLY WHAT WE WERE TALKING ABOUT. WHY IS R C I P GOING UP ON THE WATERSIDE CRP GOING UP? YEAH IT WAS. IT'S NOT A CRITICISM OF. IT'S JUST IT'S IMPORTANT TO GIVE THAT ADDITIONAL INFORMATION TO THE GENERAL PUBLIC FOR THEM TO JUST THINK ABOUT AND DIGEST AND I THINK WE CAN DEFINITELY MAKE THAT HAPPEN. I THINK IT'S ABSOLUTELY VALID. THANK YOU. RIGHT ONE LAST CHART IN RELATION TO THAT WHOLE CONVERSATION. YOU'LL SEE THAT WE CONTINUE TO SEE EVALUATIONS GO UP AND WE TALKED A LITTLE BIT ABOUT THE UNIVERSE RELATIONSHIP BETWEEN VALUATIONS AND TAX RATES. THIS IS TO SHOW YOU BASED ON THE LEGISLATIVE ENVIRONMENT THAT WE OPERATE IN AS A MUNICIPALITY IN TEXAS. WHAT WE ARE RECOMMENDING WHAT WE COULD RECOMMEND. AND THEN WHAT? THOSE TWO RECOMMENDATIONS EITHER ONE OF THEM WOULD BE IN RELATION TO WHAT WE'VE BEEN TALKING ABOUT WITH INFLATION, SO THE BLUE BAR IS OUR TOTAL RECOMMENDED TAX RATE FOR FISCAL YEAR, 24 WILL SEE IT'S JUST A HAIR BELOW. THE NO NEW REVENUE RATE PLUS INFLATION. UM. IT MAY SEEM THAT IT'S RIGHT UNDER THERE. IT'S BECAUSE THE MARGINS AS WE LOWER AND LOWER THE TAX RATE THAT WE'RE WORKING WITH ON A YEAR OVER YEAR BASIS, THEY SLIM THEMSELVES BECAUSE THE SHORTER YOUR TAX RATE BECOMES THE SHORTER THOSE MARGINS BECOME, UM , THE KIND OF AQUA WILL OR HIGHLIGHTER BLUE THAT YOU SEE SQUIGGLE ABOVE. MOSTLY EVERY LINE THERE. THAT'S THE VOTER APPROVAL TAX RATE. WHICH INCLUDES THE INCREMENTS, SO YOU KNOW A HAIR BELOW THAT VOTER APPROVAL TAX RATE IS THE TAX RATE THAT WE COULD GO UP TO WITHOUT TRIGGERING AN ELECTION.AND THAT'S BECAUSE IN PREVIOUS YEARS WE SAW ON THIS SLIDE. WE WERE UNDERNEATH THE 3.5% CAP THAT'S BEEN PLACED ON US THE DELTA OF THE CAP BETWEEN WHAT WAS ADOPTED BY THE COUNCIL IS BANKED OR CREATES AN INCREMENT THAT WE CAN THEN APPLY TO SUBSEQUENT YEARS. IF THE COUNCIL SO CHOOSES TO DO SO, THEN. TO HAMMER THAT POINT HOME. CAN YOU GO BACK? 2.34 THEORETICALLY, IF WE BURNED EVERYTHING WE COULD THIS YEAR, THAT WOULD BE 3.5. SO WE'RE BANKING WHAT 1.16. BUT I DO BELIEVE THERE WAS A CHANGE IN THE LEGISLATURE TO SAY INSTEAD OF 1.16. NOW IT'S A HARD DOLLAR AMOUNT THAT WE'RE GOING TO BE BANKING, BUT I KNOW THAT'S IN THE WEEDS A LITTLE BIT, BUT EVERY YEAR WE DON'T DO THAT. 2.81 LAST YEAR WE BANKED ABOUT 0.7. WE BEGGED ABOUT 1.5 THE YEAR BEFORE, AND THAT'S WHERE IT GETS DOWN TO YOU. IF WE COULD EAT THAT ALL UP, BUT THEN WE'D BE IF WE EAT MORE THAN THAT. WE'D BE LOOKING AT A VOTER REFERENDUM ON THE BUDGET. OKAY LET ME LET ME FILL THAT IN FOR YOU. UM YOU KNOW, WE'RE PROPOSING A TAX RATE OF 0.427513 FOR THIS FISCAL YEAR. UM YOUR INCREMENT RATE. IF YOU WENT ALL THE WAY TO THE INCREMENT, YOU WOULD BE AT POINT IT WOULD BE AT 44 6. SO IT'S TWO CENTS DIFFERENT. THAT'S WHAT YOU THINK. OVER THE LAST SEVERAL YEARS, OKAY? AND THEN FINALLY, WE'VE TALKED A LOT ABOUT WHAT'S GENERALLY THE MAINTENANCE AND OPERATION SIDE OF THE RATE OR THE RATE AT LARGE. THIS IS THE BREAKDOWN BETWEEN MAINTENANCE AND OPERATIONS AND INTEREST IN SINKING OR THE DEATH SIDE OF THE TAX RATE. YOU'LL SEE. UM THOUGH WE TRY TO MAINTAIN THE FIDELITY OF THE IONS RATE AS VALUES GO UP AND AS WE LOWER THE RATES SOMETIMES THAT HAPPENS ON THE EYE AND THAT SIDE AS WELL, AND THAT'S RATE IS NOW AT 14. CENTS ROUGHLY WE'RE GOING TO TALK A LITTLE BIT ABOUT THE CAPITAL PROGRAM A LITTLE LATER IN TODAY'S PRESENTATION THAT ALL CORRELATES WITH THE DEBT SIDE OF THE TAX RATE. BUT YOU KNOW, I ALWAYS MENTIONED THAT HE MENTIONED I DO TRY TO KEEP THAT THAT LEVEL. BUT WHEN WE WHEN WE GO TO SET OUR DEBT SERVICE FOR EACH YEAR, WE HAVE TO DO THAT BEFORE WE GET GOOD VALUE OR NOT GOOD VALUES, BUT WE HAVE AN ESTIMATE FROM FROM CAD THAT WE BASE THAT ON. WHAT OUR DEBT SERVICE WILL BE FOR THE NEXT FISCAL YEAR. AND UH, THE LAST FEW YEARS, THE NUMBER THE VALUE IS COME IN QUITE A BIT HIGHER, WHICH DID REQUIRES US TO DROP OUR DEBT. THAT SERVICE RATE. SO WHILE WE'VE TRIED TO MAINTAIN THAT WE USE THE BEST INFORMATION WE HAVE THE BEST INFORMATION CAN HAS AT THE TIME. IT'S THEIR BEST ESTIMATE. SO WE DO HAVE A LITTLE BLEED OUT OVER THAT, AND IT'S BEEN A CENT OR A LITTLE, ALMOST TWO CENTS SINCE THIS WERE 20,
[01:05:02]
BUT IT'S BEEN ABOUT A HALF A CENT, SO WE MAY CONSIDER LOOKING AT IT ALL DIFFERENTLY. IF THAT'S A RATE THAT WE WANT TO PART OF THE RIGHT WE WANT TO CONTINUE TO MAINTAIN AT THE 14TH CENT LEVEL.SORRY YOU'RE FINE. THIS IS THE PROVERBIAL MONEY SLIDE. WHAT IS THE TAX RATE MEANS TO ME AS A RESIDENT. YOU'LL SEE LAST YEAR'S TAX CALCULATIONS, AVERAGE MARKET AND AVERAGE DISCUSSED VALUATIONS EXCUSE ME, TACKY, TAXABLE VALUATIONS. AND THEN THE AVERAGE TAX LEVY. I DO WANT TO POINT OUT THAT WHILE YOU SEE A SLIGHT INCREASE ON AVERAGE TAX LEVY DUE TO THE VALUATION GROWTH DUE TO THE PROPOSED ADOPTION ABOVE NO NEW REVENUE. THE COUNCIL RECENTLY ADOPTED AN INCREASE TO THE OVER 65 AND DISABLED. SO IF YOU LOOK AT THAT AVERAGE VALUE AND ESSENTIALLY REDUCE IT BY $360, THAT'S WHAT THAT NUMBER IS, UM, IT'S VIRTUALLY THE SAME BETWEEN THE TWO YEARS THAT $5000 INCREASE IN THE COUNCIL ADOPTED A COUPLE OF MONTHS OR WEEKS BACK FROM 22 TO 23. UH, FLUSHED OUT TO VIRTUALLY BE AWASH. SO ARE OVER 65 AND DISABLED RESIDENTS WHO HAVE THAT QUALIFY FOR THAT EXEMPTION ON AN AVERAGE BASIS ARE SEEING ABOUT THE SAME. SWITCHING GEARS. PAUL TALKED A LITTLE BIT ABOUT, UM, OUR METHODOLOGY AND OUR STAFFING LEVELS IN HIS OPENING COMMENTS, YOU'LL SEE SOME RECOMMENDATIONS THROUGHOUT THE GENERAL FUND SUPPLEMENTAL RECOMMENDATIONS THAT ARE IN CORRESPONDENCE TO THIS TREND ACROSS THE ORGANIZATION BUT ON A CITIZEN SERVED PER EMPLOYEE BASIS OR EMPLOYEE PER 1000 BASES. HOWEVER, YOU LIKE TO DO THAT BACKWARDS MATH. WE ARE AT ROUGHLY SEVEN CITIZENS SERVED PER EMPLOYEE IN THE ORGANIZATION . WE'VE SEEN THAT TRICKLE UP A LITTLE BIT AS WE'VE HAD MASSIVE POPULATION GROWTH OVER THE PAST DECADE. I TALKED A LITTLE BIT ABOUT THAT. AND MY OPENING COMMENTS, GENERALLY SPEAKING THIS IS WHAT THAT LOOKS LIKE IN COMPARISON TO OUR LARGER SISTER CITY COMPARISONS HERE IN COLLIN COUNTY TO OUR PROPOSED BUDGET, YOU'LL SEE WHERE MAINTAINING OUR CITIZENS SERVED LEVELS. UM IN THE CURRENT YEAR IN RELATION TO THE PREVIOUS YEAR, AND WE STAND AROUND RIGHT ABOUT WHERE WE'VE BEEN IN THE PAST IN RELATION TO THE OTHER THREE LARGE CITIES IN THE COUNTY AND WITH THAT, I BELIEVE I'M PASSING IT BACK TO MR HOLLOWAY. HAPPY TO ANSWER ANY QUESTIONS IF YOU HAVE THEM HOUR LATER ON PRESENTATION. WELL THEY ONLY HAVE TO LISTEN TO ME FOR ONE MORE SECTION. WELL I DO HAVE SOME MORE TO TALK ABOUT, BUT ONE MORE SECTION. WE'LL GET SOME NEW BLOOD IN YOUR FREE FOR YOU GUYS.
UM DO YOU WANT WE TALKED ABOUT THE PROPERTY TAXES EVALUATION THAT I DO WANT TO TOUCH ON GENERAL FUND REVENUES AS A WHOLE. UM YOU HAVE VERY DETAILED INFORMATION IN FRONT OF YOU IN THE PROPOSED BUDGET BOOK FROM THE BUDGET BOOKS ALSO ONLINE, ANYBODY CAN GO OUT AND VIEW THAT I'LL COME AND SPEAK ABOUT SOME OF OUR MAJOR CATEGORIES. UM, SOME OF OUR ESTIMATES FOR THE YEAR. UM AS YOU CAN SEE HERE, WE WE'VE TALKED A LITTLE BIT ABOUT PROPERTY TAX. I'LL MOVE AWAY FROM THAT. I'LL TALK ABOUT SALES TAX. UM WE ARE BUDGETING, UM, FOR FISCAL YEAR, 24 AND LEVEL OF 5% ABOVE FISCAL YEAR 23 I MENTIONED I MENTIONED EARLIER THAT WE HAVE SEEN THE PART OF THE SALES TAX HERE LEVEL OFF. IT'S BECOME FAIRLY CONSISTENT IN ABOUT 5% FOR THIS YEAR. WE'RE STARTING TO SEE SOME CONSISTENT NUMBERS. WE HAVE SEEN WILD SWINGS. UH PREVIOUS VIEW, MISS SCHOOL YEARS WHERE WE WOULD HAVE MONTHS OF 15 16% GROWTH. WE WERE STARTING TO SEE THAT NOW BILL LITTLE MORE MANAGEABLE. WELL IT WAS IT WAS A GOOD PROBLEM TO HAVE. BUT NOW WE'RE STARTING TO SEE THAT THAT LEVEL OFF INTO JUST STEADY GROWTH MAKES IT ALL THE EASIER FOR US TO THE BUDGET SALES TAX. SOME MORE GOOD NEWS. BUILDING PERMITS ARE UP. WE'RE GONNA BUDGET THOSE ABOUT $500,000 ABOVE THE FISCAL YEAR 23 BUDGET WHICH WERE BUDGETED ABOUT 2% ABOVE THE PREVIOUS FISCAL YEAR. UM HOW DO WE KIND OF COME UP WITH THAT NUMBER? WE'RE SEEING SOME TRENDS, BUT THAT MAIN TRENDS IS DRIVEN BY OUR ENGINEERING INSPECTIONS. NOW THOSE WERE USED AS AN INDICATOR.
SO I'M MISSING THIS PROBABLY EVERY YEAR, BUT IT'S A THREE PART THING THAT YOU SEE YOU SEE ENGINEERING INSPECTIONS, AND WHEN THOSE START TO SPIKE, YOU'LL SEE BUILDING PERMITS THE NEXT YEAR AND THE YEAR AFTER THAT, OR THE YEAR AFTER THAT, YOU SEE THOSE THOSE NUMBERS HIP ATTACKS ROLE IN THIS IS TREVOR MENTIONED WE HAD A BILLION DOLLARS OF NEW GROWTH, UH, LAND ON THE TAX ROLL THIS FISCAL YEAR. UM WE'VE TALKED ABOUT INFLATION AND INFLATION HAS BEEN HIS HIS PROBLEM ON THE EXPENDITURE SIDE. BUT INTEREST RATES COME WITH SOME BENEFITS TO
[01:10:02]
FOR US ON THE REVENUE SIDE. UM WE SAW QUITE A BIT OF GROWTH IN OUR INTEREST INCOME FOR FISCAL YEAR 23 AND WE SEE THAT ON THE GENERAL FUND SIDE BEING ALMOST A MILLION DOLLARS MORE FOR FISCAL YOUR 24. SO WE'VE WE'VE DONE WELL THERE FOR YEARS. INTEREST INCOME ON INTEREST ON CASH BALANCES WAS WAS NOT A NOT A REVENUE SOURCE AT ALL. SO WE ARE OFFSETTING SOME OF OUR COSTS, WITH WITH SOME SOME HIGHER INTEREST GAINS NOW WE DON'T INVEST LIKE EVERYBODY ELSE.WE'VE TALKED ABOUT THAT IN THE IN THE PAST ARE ALL RIGHT. INVESTMENTS ARE VERY MODEST, AND WE HAVE TO INVEST WITH SAFETY AND LIQUIDITY. BEING FIRST TWO WORDS WITH YIELD BEING THE THIRD THING THAT WE LOOK FOR, AND WE CAN'T WE CAN'T INVEST IN ANYTHING MORE THAN FIVE YEARS.
WE'RE VERY LIMITED ON WHAT WE CAN BUT SAFETY AND LIQUIDITY OR THE FIRST TWO THINGS THAT INVESTMENTS ARE FRANCHISE FEES. UM THEY'VE REMAINED STEADY. WE'RE BUDGETING THOSE ABOUT 2% GROWTH YEARS AGO. THAT WAS ABOUT 4% GROWTH WE WERE SEEING, BUT FRANCHISE FEES HAVE REALLY KIND OF REMAIN FLAT. WE'RE NOT SEEING THOSE TAKEOFF ANYMORE. SO WE'RE GONNA KEEP THOSE FAIRLY FLAT FOR THIS WEEK OR 2. MULTIPLIER FOR FISCAL YEAR 24. SO THIS SLIDE HAS BEEN AROUND AS LONG AS I HAVE, AT LEAST SINCE 2014. AND THERE'S A WEIRD STORY BEHIND THIS ENTIRE SLIDE, AND IT'S GOT A SOLICITOR SLIDE. BUT I'M NOT GOING TO GO INTO ALL THAT TODAY. LET'S ALL JUST REALLY WANT TO HEAR IT WON'T WASTE YOUR TIME. IT DOES INVOLVE TREVOR MENU, BUT, UM, WE, UH WE? WE'VE SHOWED YOU PERSONNEL WISE, HOW WE COMPARE ON TO OUR TO OUR AREA CITIES. UM BUT THIS COMPARES OUR GENERAL FUND BUDGET, UM TO OUR AREA CITY AS YOU CAN SEE THAT WE'RE SPENDING ABOUT $930 PROPOSED BUDGET PER CAPITA. THESE NUMBERS ARE THAT 930 IS OUR FISCAL YEAR. 24 BUDGET. I HAVEN'T SEEN PLANO ALLEN FRISCO'S 2024 BUDGETS YET THEY'RE PROBABLY OUT THERE, BUT THESE ARE BASED ON ON THEIR 23 ADOPTED BUDGET, SO WE'RE A LITTLE BIT BEHIND. PER CAPITA REVENUES, BUT BUT BUT THIS SLIDE HAS BEEN AROUND A LONG TIME. IT PROBABLY NEEDS TO BE UPDATED, BUT WE KIND OF LIKE IT AND KEEP IT IN THERE FOR TRADITIONAL IT IS. IT IS VERY INSTALL GIC. OH SO THIS IS A THIS IS A MAKEUP OF OUR OF OUR TOTAL GENERAL FUND OVER OVER THE LAST 10 YEARS, YOU CAN SEE THE GROWTH THAT WE'VE BEEN TALKING ABOUT. UM THIS IS THE BUDGET WAS ABOUT $150 MILLION IN FISCAL YEAR 19 THAT'S PROPOSED TO BE OVER $202 MILLION FOR FISCAL YEAR 24. UM THIS THE DIFFERENCES HERE, IT'S ABOUT A 3.2% INCREASE FROM OUR FISCAL YEAR. 23 END OF YOUR BUDGET. UM TO THE FISCAL YEAR, 24 PROPOSED . SO THIS, UH THIS IS A COMPARISON OF OUR REVENUE SOURCES FROM OUR 23 ADOPTED BUDGET TO OUR 24 PROPOSED BUDGET. UM YEAH. PROPERTY TAX BEING ABOUT 51% SALES AND USE TAXES. THAT'S ALL OF OURSELVES AND USE TAXES, NOT JUST WHAT WE CALL SALES TAX 21. FRANCHISE FEES ABOUT 10% LICENSING, PERMITTING SEVEN CHARGES AND FINES FIVE. WITH OTHERS AND TRANSFERS BEING THE REMAINDER. UM I WOULD LIKE TO SAY THAT THE NUMBERS REMAINED FAIRLY STEADY FROM THIS YEAR TO LAST PROPERTY TAX DIPPING SLIGHTLY. UM WE'VE SEEN THIS TREND OVER THE PAST FEW YEARS. THAT'S THAT'S IT'S A IT'S GOOD TO SEE THE PROPERTY TAX NUMBER CONTINUE TO BE A LITTLE BIT LESS AND LESS OF OUR BUDGET EACH YEAR ON THE GENERAL FUND SIDE BECAUSE IT MEANS THAT THAT OTHERS ARE GROWING, ESPECIALLY WE HAD SOME MAJOR GROWTH FROM A FEW YEARS AGO WHERE WE SAW THAT SALES AND USE TAX NUMBER GO FROM ABOUT 17 OR 18% TO THE 21% LEVEL THAT YOU SEE NOW LIKE THIS, CONTINUE TO SEE SALES TAX. TAKE A BIGGER, BIGGER PORTION OF THIS BUDGET AS IT REDUCES OUR RELIANCE ON PROPERTY TAXES. UM. COUNCIL REQUESTED, I THINK STARTED ON THE EXPENDITURE SIDE A FEW YEARS AGO TO COMPARE US TO OUR REVENUE MAKEUP. OF OUR AREA CITIES. THIS IS A FISCAL YEAR 23 ADOPTED BUDGET COMPARED TO OUR FISCAL YEAR, 24 PROPOSED BUDGET. WITH OUR OUR AREA CITIES. UM ONCE AGAIN AND YOU'LL HEAR TREVOR DAG
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AND TALK ABOUT THIS WHEN HE TALKS ABOUT OUR GENERAL FUND EXPENDITURES, CITIES OR APPLES AND ORANGES WERE ALL LITTLE BIT DIFFERENT. WE'RE ALL MADE UP A LITTLE BIT DIFFERENT. YOU CAN SEE HOW WE COMPARE. UM ESPECIALLY ON THE PROPERTY TAX SIDE. WE COMPARE FAIRLY FAVORABLY TO THE REST. WE AREN'T PLAYING OR FRISCO ON THE ON THE SALES AND USE TAX SIDE. I CAN SEE THAT THEY HAVE VERY ROBUST NUMBERS ON TAKE BEING 30% OF THEIR GENERAL FUND BUDGET.THAT'S A LITTLE BIT LESS HERE. THIS SHOWS OUR PROPERTY TAX REVENUE GROWTH OVER THAT SAME PERIOD OF TIME, WITH PER CAPITA INCLUDED AS WELL, UM, IT'S ABOUT A 5% INCREASE FROM FISCAL YEAR 23 ADOPTED BUDGET TO FISCAL YEAR 24 PROPOSED THIS SLIDE ONLY SHOWS THE M AND O PORTION OF OUR PROPERTY TAX BECAUSE THE I N S PORTION IS INCLUDED IN ANOTHER FUND. WE PUT THAT DIRECTLY. THIS IS WHAT GOES DIRECTLY TO UH, SALARIES AND MAINTENANCE AND EVERYTHING THAT YOU SEE IN THE GENERAL FUND. THAT DEATH IS IN A COMPLETELY DIFFERENT BLOOD. SALES TAX IS THE THIRD TIME I'VE MENTIONED SALES TAX BECAUSE IT JUST IS SUCH KIND OF A HOT TOPIC AROUND HERE. UM YOU CAN SEE THE STEADY GROWTH THAT WE'VE HAD OVER THE LAST FEW YEARS, BUT WE HAD EXPONENTIAL GROWTH. UM, IN THOSE MID YEARS. UM IT'S A THIS IS REPRESENTS 5% MORE THAN OUR END OF YEAR ESTIMATE. AND WE ARE STILL SEEING THAT 5% NUMBER BEING THE NUMBER UM FROM FROM YEAR TO YEAR THE LAST TWO YEARS.
AND WITH THAT, I'M GOING TO GET OUT OF THE WAY. I'M GOING TO LET TREVOR DAGON SPEND A FEW MINUTES TALKING ABOUT GENERAL FUND EXPENDITURES. HE'LL GO THROUGH, UM, SOME OF OUR OUR MAIN CATEGORIES AND A LOT OF THE THINGS THAT ARE NEW AND EXCITING FOR FISCAL YEAR, 24 EVER.
ALRIGHTY THANK YOU. MARK GOOD MORNING COUNCIL BEFORE I BEAT YOU ALL DOWN SOME MORE NUMBERS.
ANYBODY NEED A BREAK. WE JUST WANT TO KEEP ROLLING. I WAS THINKING WE'D GO TO 10. O'CLOCK IS EVERYONE OKAY WITH THAT 12 MINUTES? OKAY PROBABLY TAKE YOUR PRESENTATION AND THEN WE'LL TAKE A BREAK. OKAY SOUNDS GOOD. ALRIGHT. SO AS MARK MENTIONED, HE JUST WENT THROUGH THE REVENUES FOR THE GENERAL FUND. SO I'M GONNA TAKE YOU ALL THROUGH THE EXPENDITURE SIDE.
AGAIN. HERE'S THAT LOVELY, NOSTALGIC SLIDES AT THE WORD USED. THAT'S THE RIGHT WORD. BUT ANYWAY, UM YOU'LL SEE, UH, AT LEAST FOR US BASED ON OUR 24 BUDGETS, SINCE WE DO ADOPT A FLAT BUDGET ON THAT CAPTAIN NUMBER IS THE SAME AS IT WAS ON THE REVENUE SIDE. UM AND THEN SOME OF THE HIGHLIGHTS THAT ARE INCLUDED IN THIS GENERAL FUND BUDGET FOR 24. WE'VE GOT ABOUT 6.5 MILLION OF NEW EMPLOYEES AND EQUIPMENT. THOSE ARE THOSE PROPOSED SUPPLEMENTALS WILL FIND IN THE PROPOSED BUDGET BOOK. UM AND THEN THEY'LL STEP INCREASES WE MENTIONED EARLIER FOR BOTH PUBLIC SAFETY AND JUMP GENERAL GOVERNMENT. UM ABOUT ONE POINT 7,000,001 0.5 MILLION OF THOSE COSTS RESPECTIVELY. AND THEN JUST KIND OF DIMENSION LAST YEAR FOR 23 SORRY WE HAD BUDGETED FOR A MARKET STUDY TO BE DONE TO OUR OVERALL SALARY PLAIN AND SO, OF COURSE THAT HAS BEEN UPDATED.
THE SECOND HALF OF 23. UM AND THEN SAME SLIDES. WE LOOKED AT FOR THE REVENUES, GENERAL FUND EXPENDITURES. UM SO REVENUES MARK MENTIONED ABOUT 3% INCREASE ON THE EXPENDITURE SIDE AS WELL FROM OUR END OF YEAR 23 TO OUR PROPOSED BUDGET FOR 24. AND YOU'LL SEE. EVEN OVER THE LAST 10 YEARS WE'VE ALMOST DOUBLED OUR EXPENDITURE BUDGET IN THE GENERAL FUND. AND THEN JUST KIND OF THE MAKEUP OF THOSE EXPENSES , CANADA DIFFERENT DEPARTMENTS OR DIVISIONS THAT MAKE UP THAT $202 MILLION BUDGET. OF COURSE, IS HE EVERYBODY'S KIND OF RELATIVELY STAYED THE SAME AS FAR AS THEIR SHARE OF THE PIE. UM SEE PUBLIC SAFETY. UM IT'S BEEN THE ONLY REAL ONE. HIS INCREASE THAT WILL HAPPEN WITH 17 NEW POSITIONS THAT ARE IN THIS PROPOSED BUDGET. AND THEN AGAIN, HERE'S KIND OF THAT COMPARISON TO OUR SISTER CITIES. UM YOU SEE ALL RELATIVELY ABOUT THE SAME AS TO WHO IS, UM, OUR BIGGEST CONTRIBUTOR ON THE EXPENSE SIDE. BUT AGAIN AS MARK MENTIONED APPLES AND ORANGES BECAUSE EVERYBODY MIGHT INCLUDE SOMETHING DIFFERENT IN EACH ONE OF THESE CATEGORIES. WE TRY TO KEEP THEM AS SIMILAR AS WE CAN TO US, BUT EVERYBODY, YOU KNOW, BUDGETS, THEIR STUFF A LITTLE DIFFERENTLY. ALRIGHT SO LET'S GO INTO EACH ONE OF THOSE
[01:20:06]
CATEGORIES. THE FIRST ONE HERE GENERAL GOVERNMENT THAT'S GOING TO INCLUDE VARIOUS DEPARTMENTS, HR COMMUNICATIONS AND MARKETING , FINANCE, CITY MANAGEMENT PROCUREMENT. AND THEN SOME NON DEPARTMENTAL DEPARTMENTS SUCH AS OUR RENT UTILITIES. THE COMMUNITY GRANTS WILL SEE LATER ARE INCLUDED IN THOSE NUMBERS. BUT WITH ALL THOSE DEPARTMENTS 167 POSITIONS UM, THAT DOES INCLUDE THE PROPOSED POSITIONS FOR FISCAL YEAR 24. WHICH YOU'LL SEE THERE. WE GOT A NEW RISK MANAGER PROPOSED AS WELL AS ANOTHER DEPUTY CITY MARSHAL. THAT A 50% SHARE OF THE PROGRAM COORDINATOR FOR IMPACT AND MAIN STREET MOVING ON THE PUBLIC SAFETY. AND SO BETWEEN POLICE AND FIRE ABOUT 600 AUTHORIZED POSITIONS THAT SWORN IN ON SPORT INCLUDED IN THAT NUMBER. AND AS I MENTIONED EARLIER BETWEEN THE TWO OF THEM 17 NEW POSITIONS PROPOSED IN THIS BUDGET ON THE POLICE SIDE, SIX FIRST RESPONDERS, SERGEANT TWO DETECTIVES. ON THE FIRESIDE, ANOTHER SIX FIREFIGHTERS AS WELL AS A GRADUATE FIRE PROTECTION ENGINEER. NEXT WE HAVE OUR DEVELOPMENT SERVICES, SO IT'S GOING TO INCLUDE YOU KNOW YOU'RE PLANNING CODE SERVICES BUILDING INSPECTIONS, ENGINEERING. WE'RE ALL INCLUDED UNDERNEATH THE DEVELOPMENT SERVICES UMBRELLA ABOUT 119 THIRTIES POSITIONS HERE AND THREE NEW POSITIONS PROPOSED IN THIS YEAR'S BUDGET.ANOTHER C I P MANAGER AND TWO MORE COMBO BUILDING INSPECTORS. THE NEXT PUBLIC WORKS. SO THIS IS JUST GENERAL FUND PUBLIC WORKS. IT DOESN'T INCLUDE SOLID WASTE OR WATER. SO THIS IS YOUR BUILDING OPS IN THE STREETS AND PUBLIC WORKS ADMIN ARE INCLUDED IN THE GENERAL FUND. AND FOR THEM ABOUT FOUR NEW POSITIONS BACK SUPERVISOR. COUPLE FACILITY MAINTENANCE MECHANICS. ANOTHER RIGHT OF WAY, INSPECTOR PUT SOME OF YOUR TOTAL OF 83 AUTHORIZED POSITIONS PHYSICALLY OR 24.
FINALLY, OUR LAST GROUP. YOU HAVE YOUR PARKS AND LIBRARY SO BETWEEN THE TWO OF THEM 206 POSITIONS INCLUDED IN THIS YEAR'S BUDGET. AND SOME OF THE NEW EXPENDITURE ITEMS. UM WE'VE ADDED THE BUDGET FOR THE JUNETEENTH CELEBRATION. UM THE PARK'S BUDGETS WILL BE TAKING THAT OVER. 24 AND THAT OPINION POSITIONS NEW ASSISTANT DIRECTOR OF PARKS UM AND THEN FOUR PARKS, MAINTENANCE POSITIONS AND THEN ONE LIBRARY VOLUNTEER COORDINATOR. AND THEN EACH YEAR WE'D LIKE TO SHOW THE COUNCIL THIS. UM THIS IS ANNUALLY INCLUDED IN THE GENERAL FUND.
THIS IS OUR GRANTS TO COMMUNITY BUDGET. THIS YEAR. IT'S ABOUT 625,000. SO THIS INCLUDES YOUR DIFFERENT ITEMS SUCH AS YOUR ARTS COMMISSION, COMMUNITY SUPPORT GRANTS. UM AND THEN VARIOUS OTHER FUNDING FOR DIFFERENT, UM ASSISTANCE OR COMMUNITY GRANTS. THIS IS THE $2.91 PER CAPITA, THE THAT PAUL WAS MENTIONING EARLIER. THIS IS THIS SLIDE REPRESENTS THOSE THOSE DOLLARS. UM SO WE'VE GONE FROM $2.76. I THINK ROUGHLY LAST YEAR TO $2.91 IN THE FISCAL YEAR 24 BUDGET. THAT WAS MY FIRST LITTLE SPIEL THERE. UM HE HANDED IT BACK TO MARK HERE TO GO THROUGH CPP, AND THEN I'LL COME BACK AND FINISH IT UP WITH OUR ENTERPRISE FUNDS COMPONENT UNITS SO YES, SIR. WE WANT TO TAKE A BREAK. NOW, THEN, YES. TAKE CARE.'S THAT'S THE $10 PER MINUE PENALTY FOR BEING LAID. CHECKS COULD BE THERE WILL CONTINUE ON . WELL, WE'VE WE'VE WALKED THROUGH WATER RATES THIS MORNING. WE WALKED THROUGH THE GENERAL FUND A LITTLE BIT. UM, WE'VE WE WOULD LIKE TO TALK TO COUNSEL A LITTLE BIT ABOUT OUR CRP PROGRAM. UM AS YOU KNOW, WE ARE VERY FAST GROWING CITY THE NEED TO BUILD AND MAINTAIN THOSE ASSETS GROWS RIGHT ALONG WITH IT. THIS IS THE CURRENT FIVE YEARS. C I P UM AND NOT ALL OF THESE HAVE FUNDING SOURCES. SO WE'VE GOT ASSIGNED TO THEM OR IDENTIFIED. WE HAVE ABOUT 1.5 BILLION OR ALMOST $1.6 BILLION IN OUR FIVE YEAR CAPITAL IMPROVEMENT DOESN'T MEAN WE'RE GOING TO BUILD ALL THAT. IT'S JUST IT'S LONG TERM, PLANNING ITS LONG TERM THINKING. AND THERE'S DIFFERENT REVENUE SOURCES ACROSS OFFICES AND ALL JUST DEBT FUNDING. BUT FOR NOW, I JUST WANTED TO POINT OUT THAT
[01:25:01]
WE HAVE ABOUT MOST OF 1.6 B AS IN BILLION FOR, UM, CAPITAL IMPROVEMENT PROGRAM. ACROSS THOSE YEARS. THE MAJOR PROJECTS THAT WILL ARE ARE WE LOOKING AT PROVIDING FUNDING FOR DURING THE FISCAL YEAR 24 BUDGET I WON'T READ ALL OF THESE, BUT WE DO HAVE YOU KNOW, AIRPORT PROJECTS ABOUT 8.2 THAT YOU SEE THERE. WE HAVE A VERY BIG WATER AND WASTEWATER NUMBER THAT YOU SAY WE'VE WE'VE BEEN TALKING ABOUT THAT THIS MORNING. THOSE NUMBERS ARE ONLY GOING TO INCREASE OVER THE YEARS. UM, WE HAVE. THESE ARE JUST SOME OF THE MAJOR PROJECTS THAT ARE WITHIN THEN THAT YOU CAN SEE THAT THERE IS SOME PLANS TO A LARGE PLANS ON THE PARKSIDE. MR. KOWSKI HAS $40 MILLION WORTH OF NEEDS OF NOTED FOR FISCAL YEAR 24. CORRECT RED SOCCER COMPLEX BEING THE BIGGEST PORTION OF THAT. ON THE FACILITY SIDE. THEY'RE ON THE CITY HALL AND TECHNOLOGY FURNISHINGS. YOU SEE, THAT IS, UM LET'S DO COMPLETE AND FINISH OUT THE NEW CITY, THE NEW CITY MUNICIPAL BUILDING. THAT THOSE DOLLARS WILL BE COMING FROM. I JUST WANT TO WALK YOU THROUGH THIS WHAT WE CALL OUR FUND 32. UM THAT THAT FUND WILL BE SHOWING IS RUNNING A DEFICIT. THIS IS WHERE WE PUT UM WE'VE BEEN PUTTING MONEY ASIDE SINCE 2014 FOR TWO TO DO RENOVATIONS AND BUYING EQUIPMENT . THINGS LIKE THAT. WE'VE BEEN SETTING MONEY ASIDE. WE'RE GOING TO TAKE $8 MILLION FROM THAT FUND BALANCE TO FINISH UP THE CITY HALL PROJECT WITH OUR FURNISHINGS. I JUST WANT TO POINT THAT OUT. UM, THE FUND IS STILL VERY STRONG FUND AND WE'RE GOING TO CONTINUE TO DO ALL THE THINGS THAT WE'VE BEEN DOING BEFORE. BUT WE'RE WE HAVE BEEN PLANNING FOR THIS FOR SEVERAL YEARS. IN FACT, WHEN WE TALKED ABOUT HOW WE WERE FUNDING CITY HALL, I MENTIONED THAT THIS WAS THIS WAS HOW WE WERE GOING TO FUND THOSE FURNISHINGS AND THIS WILL BE BUDGETED IN THE FISCAL YEAR 24 BUDGET WITH THAT THESE ARE THE ONES THAT WE HAVE FUNDING FOR. BUT AS I MENTIONED, AND THAT $1.6 BILLION THAT YOU SAW, WE HAVE QUITE A BIT OF UNFUNDED PROJECTS. THIS IS ACROSS ALL OF OUR CATEGORIES AND ACROSS ALL OF OUR FUNDS WE HAVE ABOUT 765,000 WHAT WE CALL UNFUNDED. THAT DOESN'T MEAN THAT $765 MILLION WITH THE WIND FILM AND THESE ARE YEAH, GIVING YOU THAT 1007 $165 MILLION WORTH OF PROJECTS OVER THE NEXT FIVE YEARS THAT WE HAVE NOT IDENTIFIED, IDENTIFIED A REVENUE SOURCE FOR DOESN'T MEAN THAT WE CAN'T FIND IT OR WE'RE HAVING PROBLEMS WITH, BUT A LOT OF THAT MEANS, YOU KNOW, ESPECIALLY ON THE GENERAL OBLIGATION SIDE THAT WE HAVE PROJECTS SCHEDULED. WE HAVE SO MUCH DEBT AUTHORIZATION. WE DON'T HAVE ANY FURTHER DEBT AUTHORIZATION ON THE JOURNAL OBLIGATION SIDE. SO REQUIRE US AS WE EXPIRE. WHAT I SHOWED YOU ALL THAT 2019 DEAD AUTHORIZATION TO POTENTIALLY HAVE ANOTHER BOND ELECTION IN EITHER 2023 2024 OR 2025, BECAUSE ALL OF OUR STREETS MONEY, UM, SHOULD BE FULLY EXPENDED WITHIN 12 EITHER IN FISCAL YEAR 24 DEFINITELY 25 AND MOST OF THE OTHER ONES. THOSE OTHER CATEGORIES ARE SHOWING ALL EARLIER. WILL WILL BE, UM BEFORE FULLY USED BY 2025. CAN YOU GO BACK TO THE PREVIOUS SLIDE? ABOUT HALF OF THAT NUMBER A LITTLE BIT LESS THAN HALF THIS GOES TO THE AIRPORT. THAT'S A BIG NUMBER. AND YOU KNOW, WE TALKED ABOUT THE AIRPORT BEING RELATIVELY SELF SUSTAINING WITH ITS WITH ITS REVENUES. WALK ME THROUGH WHAT THE LIKELY SCENARIOS ARE TO GET FUNDING FOR THAT DOES THAT COME OFF THE GENERAL OBLIGATION? WELL WE WOULD NOT BE ABLE TO DO ANY GENERAL OBLIGATION DEBT FOR THE AIRPORT. COMMERCIAL SERVICE FOR A PERIOD OF THREE YEARS, RIGHT SO BECAUSE THE ELECTION DID NOT PASS, THOUGH, THAT IF WE WERE TO CONTINUE FORWARD WITH COMMERCIAL SERVICE, THOSE DOLLARS ARE STILL UNIDENTIFIED. SO I DON'T HAVE A FUNDING SOURCE TO CONTINUE THAT PROJECT, SO IT STAYS IN THE CRP. WE NOW HAVE TO DETERMINE WHERE WE GO FROM HERE. WHAT ARE THE OPTIONS? WELL AS WE'VE TALKED ABOUT, THERE'S POTENTIAL FOR, YOU KNOW, A PUBLIC PRIVATE PARTNERSHIP OR OR OR ANY SORT OF CERTAIN OTHER THINGS, BUT BUT GENERAL OBLIGATION BONDS OR ANY SORT OF PROPERTY TAX BACK DEBT. IS OFF THE TABLE FOR A PERIOD OF THREE YEARS. BECAUSE THAT ANSWER I THINK WOULD HAVE BEEN VERY CONFUSING FOR SOME PEOPLE LISTENING BECAUSE THE WAY YOU ANSWER THAT AND UNDERSTAND WHAT THAT WAS ANSWER ON A THING, BUT PATRICK'S QUESTION WAS IN REFERENCE TO LIKE 37 MILLION IN FISCAL YEAR 28, AND YOU WENT INTO AN ANSWER ABOUT COMMERCIAL SERVICE AND GEO BONDS. BUT THE REALITY IS OF THE UNFUNDED PROJECTS. NONE OF THAT HAS ANYTHING TO DO WITH COMMERCIAL SERVICE, RIGHT. THE PROJECTS THAT MAKE UP THAT THAT I'M OUT[01:30:04]
RIGHT NOW THAT'S LISTED. UM. WELL I'M SORRY YOU'RE TALKING ABOUT THE 308 WAS THE FISCAL YEAR. I'M SORRY. I'M LOOKING INTO THE FUTURE AND UNFUNDED. OKAY BUT IF YOU GO BACK TO THE PREVIOUS SLIDE AGAIN, MARK, BUT IF YOU LOOK AT THE AIRPORT, IT TOTALS OUT TO 354 MILLION OF 7 65, OF WHICH 308 IS IN 2020. FOR SURE. THAT'S JUST BECAUSE THAT IS WHERE WE HAD THE COMMERCIAL SERVICE. OKAY? THAT THAT WE CANNOT KNOW. WE CANNOT FUND THAT WITH GEO BONDS OR ANY OF THE UNFUNDED PROJECT. THAT'S REALLY THIS SLIDE, GIVEN THAT WE HAVE NOT MADE A DECISION TO DO COMMERCIAL SERVICE, AND IT WOULD WHAT IS OFF THE TABLE FOR GEO. TO ME. IT LOOKS A LITTLE MISLEADING, THOUGH, BECAUSE THAT 308 IS NOT SOMETHING THAT'S GOING TO HAPPEN IN 2020 FOR THAT, AND WE UNDERSTAND THAT, BUT WE HAVE A WE HAVE THE PROGRAM THAT WE PUT FORWARD AND WE UNDERSTAND THAT IT'S GOING TO STAY UNFUNDED AND NOT NOT CONTINUED TO GET DONE. WE JUST WE'RE SHOWING YOU THAT THAT'S WHEN IT WAS PLANNED TO HAVE BEEN ISSUED. AND NOW IT'S KIND OF BECAUSE MY CONFUSION WAS. I DIDN'T REALIZE THAT 308 INCLUDED THE COMMERCIAL TERMINAL, WHICH WAS MORE OR LESS TAKEN OFF THE TABLE FOR NOW, AND SO, OKAY, SO THANK YOU SO MUCH FOR THAT. JUST TO THIS POINT. I JUST WANT SOMEBODY TO YOU KNOW IN THE PUBLIC EYE, GRABBED HIS SLIDE AND SAY, LOOK IT'S THERE, AND THEY'RE GOING TO DO IT IN 2024, WHERE WE DON'T HAVE INCORRECT AND THAT IF IT SO. THAT WE WHEN WE PUT FORTH THE C I P. IT'S KIND OF AN ACCOUNTING TOOL, AND THIS FELL INTO THE UNFUNDED CATEGORY AS WE MOVE THAT FORWARD , SO IT DOESN'T IT DOES NOT MEAN THAT THAT IS THE POLICY THAT WE'RE MOVING FORWARD. BUT I DO THINK IT'S MORE. IT'S FAIR TO SAY AND CORRECT ME IF I'M WRONG, SO I COULD BE WRONG WHERE WE'RE LOOKING AT STREETS. WE'RE LOOKING AT SOMETHING THAT'S PRETTY REALISTIC NUMBER THAT WE'RE GOING TO HAVE TO DO IF WE'RE GOING TO KEEP OUR STREETS UP. YES AND I WAS NOT, UH NOT WAS NOT SUGGESTING THAT THAT AIRPORT BE CONSIDERED AS PART OF THE BONDS, OR JUST LIKE THE WASTE, WATER OR WATER WOULD NOT BE CONSIDERED PART OF A GENERAL OBLIGATION BOND SALE. JUST POINTING OUT WHAT OUR CATEGORIES ARE. WHERE ARE UNFUNDED PROJECTS ARE AND WHETHER WE CHOOSE TO DO THOSE OR NOT. THAT'S TWO DIFFERENT THINGS. AND I DON'T MEAN TO SPEAK FOR EVERYONE ON COUNCIL. BUT I WILL SAY THIS AND ANYONE CAN DISAGREE WITH ME WHEN WE TALK ABOUT THIS. THE STREETS ARE OF FAR MORE IMPORTANT TO ME TO MAKE SURE THEY ABSOLUTELY GET DONE. THEN WHAT WE'RE TALKING ABOUT UP THERE WITH THE AIRPORT.THANK YOU. SO THIS IS THIS IS WHAT ARE SOME OF THOSE MAJOR PRODUCTS ON THE LIST THAT THAT FIRST ONE THAT 260 MILLION. THAT'S THAT IS THE TERMINAL FOR COMMERCIAL SERVICE. THAT IS NO LONGER AS NO LONGER FUNDING SOURCE. SO WE KEEP IT LISTED, BUT IT DOESN'T MEAN THAT WE'RE GOING TO DO THIS OR ANY OF THESE. THESE ARE JUST WHAT WE'RE CONSIDERING OUT THERE IN OUR PROJECT PLANS. AH YOU SEE DRAINAGE PROJECTS ABOUT 9.3. WE HAVE SOME MAJOR FACILITIES PROJECTS THAT DO NOT HAVE A FUNDING SOURCE AT THIS TIME, ONE OF THOSE BEING THAT A POSSIBLE NEW FACILITY FOR MUNICIPAL COURT THE CURRENT MUNICIPAL COURT HAS REACHED INTO LIFE, I WOULD SAY, UM, MR MINISTER, WOULD YOU AGREE WITH THAT? AH I WOULD PUBLIC WORKS COMPLEX. I MENTIONED THAT THAT EXPANSION WAS GOING TO CONTINUE. WE HAVE ABOUT $17 MILLION WORTH OF GEO BONDS.
STILL THE ISSUE. OF SOUTH CAMPUS, BUT THERE'S STILL QUITE A BIT TO BE DONE OUT THERE. UM YOU KNOW, PARKS AND LIBRARIES PLANS FOR POSSIBLY A NEW SENIOR CENTER FOR RENOVATIONS FOR THE FOR THE LIBRARY ACROSS THE STREET, THE WHOLE LIBRARY. AND THEN YOU CAN SEE WE HAVE QUITE A BIT OF A FUTURE PUBLIC SAFETY PROJECTS OUT THERE FOR FROM FIRE STATIONS TO NEW FIRE STATIONS TO FIRE STATION RECONSTRUCTIONS AND POSSIBLY ADDING EVEN ON MORE ONTO OUR PUBLIC SAFETY BUILDING.
AND THEN WE SAID VARIOUS STREET PROJECTS OF 75 HERE, BUT WE ALSO HAVE, YOU KNOW, PROBABLY ANOTHER $75 MILLION WORTH OF STREET PROJECTS THAT ARE ALSO OUT THERE, SO WE HAVE QUITE A QUITE A BIT OF ONE FUNDED PROJECTS THAT WE DON'T HAVE DOLLARS ASSIGNED TO AT THIS POINT. SO IT MAY BE TIME TO CONSIDER, UM POSSIBLY HAVING ANOTHER BOND ELECTION. WHETHER IT BE IN FISCAL YEAR 20 CALENDAR YEAR 24 OR CALENDAR YEAR 25. UM. BOTH WOULD FOLLOW PRETTY MUCH THE SAME CALENDAR. INTERRUPT AGAIN. I'M SO SORRY. CAN YOU GO BACK TO SLIDE LOOKING UNDER FIRE STATIONS? FIRE STATION NUMBER 8 12.5 MILLION. IS THAT 12.5 THE TOTAL COST OF THE RECONSTRUCTION OR IS THAT ONLY PART OF THE COST THAT REPRESENTS THE UNFUNDED AMOUNT? UH THAT IS THE TOTAL AMOUNT OF THE RECONSTRUCTION. I BELIEVE WE HAVE ALL OF THE AISLE PUBLIC SAFETY MONEY THAT IS
[01:35:01]
CURRENTLY UM, WE ARE OUT THERE. I CAN. I CAN GET YOU A LIST OF WHAT THE BREAKDOWN OF WHAT WE HAVE LEFT FROM THIS WEEK FROM THE 2019 BOND PROGRAM TO NOW, UM, OUT THERE, I CAN GET A LIST OF THOSE PROJECTS FOR YOU. BUT THE PARIS STATION RECONSTRUCTION IS LISTED FOR ABOUT 12.5 MILLION. THANK YOU, SIR. SO AS I MENTIONED IF WE CHOSE TO HAVE AN ELECTION, WHETHER IT BE IN CALENDAR YEAR 24 CALENDAR 25. THE DATES WOULD WOULD CHANGE A LITTLE BIT, BUT IF IT WERE CALENDAR 24 SEPTEMBER YOU WOULD NEED PROBLEMS POSSIBLY FORM A BOND COMMITTEE HAVE MY COMMITTEE MEETINGS THROUGHOUT THE THROUGHOUT THE REST OF 23. THE DEADLINE TO CALL AN ELECTION WOULD BE FEBRUARY 16TH. WITH THE ELECTION BEING ON MAY 4TH THOSE TWO LAST TWO DAYS WOULD CHANGE IF YOU DECIDED COUNCIL DECIDED TO HAVE THE ELECTION 25 UM YOU KNOW, UM, I WANT TO WEIGH IN ON THIS SLEEP THE IT'S COMPLETELY THE DISCRETION OF THE COUNCIL. OF COURSE, WHEN YOU WOULD TIME A BOND ELECTION. BASED ON OUR BURN, RIGHT? YOU'RE GONNA RUN OUT OF MONEY, PROBABLY IN 25 25 FOR SOME OF YOUR STREETS AND PUBLIC PUBLIC WORKS OR ENGINEERING CAPITAL IMPROVEMENT PROGRAM ITEMS AND DOESN'T MEAN YOU CAN'T DO IT AND MAKE IT HAPPEN, BUT IT DOES. IT DOES SPREAD PRETTY THIN. SO YOU HAVE TO THINK ABOUT THAT WITH RESPECT TO YOUR BOND ELECTION AND THEN YOU KNOW THAT THE OTHER PART OF IT IS. DO YOU WANT TO DO A BOND ELECTION INTO TWO YEARS STRAIGHT VERSUS TRYING TO GROUP ALL OF YOUR ITEMS THAT YOU NEED? IN ONE ELECTION, WHETHER IT'S 2024 2025 IN OTHER WORDS, I DON'T KNOW IF YOU'RE GOING TO WANT TO DO ABOUT ELECTIONS IN EACH OF THOSE YEARS, DO YOUR STREETS AND SOMETHING ON 2024 AND THEN ANOTHER COUPLE OF ITEMS AND 25.IT'S PROBABLY ANY EFFICIENT AND , UM, YOU KNOW, YOU TYPICALLY CREATE MON COMMITTEES, AND THERE'S A PROCESS TO GO THROUGH. IT'S TIME CONSUMING. SEE YOU PROBABLY WANT TO DO IT ONE TIME.
THE ANALYSIS FOR YOU IS YOU HAVE TO LOOK AT AND SAY WHEN IS THE BEST TIMING FROM YOU FROM THE CITY COUNCIL FROM A POLITICAL AND POLICY STANDPOINT. VIEWPOINT YOU COULD DO IT IN EITHER ONE.
BUT YOU'RE GOING TO BE SPREADING PRETTY THIN IF YOU WAIT TILL 25 TO 25 MAKE IT EXTREMELY DIFFICULT FOR THE BUDGETING PROCESS AS WELL. NOT KNOWING AS YOU BEGIN THAT PROCESS IN JANUARY, FEBRUARY PLANNING NOT KNOWING THEN I MEAN, WE IF YOU HAVE THE BOND ELECTION IN MAY OF 25 AND YOU KNOW THE BOTTOM PASSES. OBVIOUSLY YOU CAN YOU STILL HAVE TIME TO FACTOR THAT INTO YOUR BUDGET PRESENTATION. LATER THAT YEAR, BUT YOU WON'T BE ABLE TO ISSUE ANY DEBT UNTIL LATER IN 25. AND BY THAT TIME YOU MAYBE COFFERS MIGHT BE EMPTY CABINET MAYBE EMPTY AND SOME OF THOSE BUYING PHONES, PARTICULARLY, I THINK THE ROADS AND THE FASTEST BIRTHDAY WE WOULD HAVE OPTIONS FOR THE STREETS IF WE COULD DO CERTIFICATES OF OBLIGATIONS FOR STREETS, IT WOULDN'T PENALIZE US IN ANY WAY OR INTEREST RATES. WE'VE JUST TYPICALLY HERE. DONE GENERAL OBLIGATION BONDS FOR PRETTY MUCH EVERYTHING THAT WE CAN PLANNING PROCESS YOU'D PREFER 24. I THINK I THINK THAT WOULD AFFECT ME, POSSIBLY LESS THAN THAN SOME OF OUR OTHER STAFF, SO I DON'T WANT TO SPEAK FOR EVERYBODY. I THINK AS FAR AS YOU KNOW, FUNDING FUNDING DOLLARS FOR, UM, STREETS WITH CEOS, THINGS LIKE THAT I CAN I CAN PLAN THAT OUT INTO 25. BUT OTHER PEOPLE MAY FEEL DIFFERENTLY THAN THAN I DO. JUST MAKE MORE SENSE TO ME THAT WE PUT IT ON THE BALLOT AND 24. SO WHOEVER SITTING HERE IN 25 DOESN'T HAVE TO DEAL WITH THAT ISSUE. EARLY AS HAS SOME CERTAINTY OF WHAT THEY HAVE TO DEAL WITH. WATER AND WASTEWATER.
ALRIGHT, WELL, I'M GOING TO MOVE ALONG AND LET MR DAGAN TAKE Y'ALL HOME FROM HERE AND BE HAPPY. BE HAPPY TO TAKE ANY QUESTIONS THAT YOU WILL CONTINUE TO HAVE. UNDER WATER. WASTEWATER YES. I DIDN'T WANT YOU TO HEAR WHAT I HAD TO SAY. UM ANYWAY, SO WE'LL KIND OF TOUCH HIGH LEVEL IN THE WATER AND WASTE WATER FUND. UM AS WE KIND OF HAD OUR RATE CONSULTANTS WITH DETAIL, UM, KIND OF HOW THEY DETERMINE THE COST OF OUR RATES FOR THIS UPCOMING YEAR. BUT JUST A FEW HIGHLIGHTS IN THAT FUN. WE CONTINUE OUR WATERLINE REPLACEMENT PROGRAM AS WE DO EACH YEAR. AS WE SHOWED EARLIER IN THAT RATE PRESENTATION. WE DID HAVE A DEBT SALE THIS YEAR IN FISCAL YEAR 23. WE DO ANTICIPATE ANOTHER ONE. FISCAL YEAR 24 AS WE SAW THOSE LISTS OF PROJECTS HAVE TO DEAL WITH WATER. AND THEN JUST SOME OF THE SUPPLEMENTALS THAT ARE INCLUDED
[01:40:03]
IN THIS YEAR'S BUDGET. UM COUPLE OF METER MAINTENANCE CREW LEADERS, A DATA ANALYST, UM COUPLE OF WASTEWATER, TEXT, WASTEWATER CREW LEADER AND THEN SOME SAFETY AND EMERGENCY RESPONSE EQUIPMENT FOR BOTH WATER AND WASTEWATER, RESPECTIVELY. AND THEN HERE AGAIN IS KIND OF THE RATES THAT WE TOUCHED ON EARLIER. AS DAN MENTIONED EARLIER IN THE PRESENTATION. ON THE NORTH TEXAS RATES ON THE WATERSIDE LOOKING AT ABOUT A 9% INCREASE TO OUR RATES, A WASTEWATER SIDE ABOUT 11% INCREASE THOSE ARE DUE TO VARIOUS FACTORS THAT THEY DEAL WITH ON THEIR SIDE. INFLATION MARKET CONDITIONS THEIR OWN CAPITAL IMPROVEMENT PROGRAM. SO ON OUR SIDE BASED ON THOSE RATES OF DANCERS EARLIER, THOSE WOULD BE ABOUT 8% INCREASE ON THE WATERSIDE AND THEN 8% INCREASE ON THE WASTEWATER SIDE FROM WHAT THE RATES ARE CURRENTLY AT. NEXT WE HAVE A COUPLE OF OTHER ENTERPRISE FUNDS ARE SOLD. WASTE SURFACE WATER DRAINAGE. SO JUST WANTED TO MENTION OUR SALT WASTE RATES. WE INCREASE THOSE DECEMBER 22 WAS THE LAST INCREASE 96 CENTS ON THE RESIDENTIAL SIDE 5% FOR COMMERCIAL. 2021 WHEN WE KIND OF STARTED THOSE INCREASES. THAT WAS THE FIRST YEAR CUSTOMERS ON INCREASING THEIR RATES SINCE FISCAL YEAR, 2006 FROM FISCAL YEAR 2006 2 UNTIL THAT 2021 INCREASE CITY HAD ALWAYS EATEN ANY RATE INCREASES THAT WE RECEIVED FROM WASTE CONNECTIONS OR ANY KIND OF ADJUSTMENTS. WE ALWAYS EAT THOSE INCREASES SO AS TO KEEP THE CUSTOMERS OVERALL RATE FLAT. UM COMING UP. I BELIEVE THIS. COMING TUESDAY. THE CONTRACTS FOR THE COLLECTION OF SALT WASTE AND RECYCLING AND RECYCLING PROCESSING WILL BE PRESENTED. TO COUNSEL. AND THEN A FEW OF THOSE SUPPLEMENTALS IN THE SALT WASTE FUND ASSET MANAGEMENT ANALYSTS, UM, A COORDINATOR. GRAPPLE TRUCK, WHICH IS SOMETHING PRETTY INTERESTING TO GO. LOOK UP IF YOU'RE INTERESTED. AND THEN THEY HAD ABOUT $800,000 AND REPLACEMENTS. SO OVERALL IN THIS FUND THIS YEAR WE WERE ABLE TO FUND ABOUT $1.3 MILLION IN PROPOSED SUPPLEMENTALS. AND THAT SURFACE WATER DRAINAGE. JUST A COUPLE OF THINGS I MENTIONED HERE. UNLIKE SOLD WAYS, THERE'S BEEN NO CHANGES TO THE PEACE SCHEDULE, BELIEVE OUR LAST UPDATE WAS PHYSICALLY OR 15. HOPEFULLY WE CAN TAKE A LOOK AT THOSE IN THE NEAR FUTURE. AND THEN JUST ONE ADDITIONAL POSITION ARE REQUESTED IN THAT ONE. I MEAN, THERE'S MARK MENTIONED EARLIER. THIS IS OUR COUPLE SLIDES ARE CAPITAL EQUIPMENT REPLACEMENT FUND. AGAIN THIS STARTED BACK IN 2014 . WE KIND OF SHOW YOU ALL THIS EVERY YEAR JUST TO MENTION THIS IS KIND OF WHAT WE'VE USED TO ADDRESS ANY FLEET REPLACEMENTS, FACILITY UPGRADES OR ANY OTHER LARGE KIND OF CAPITAL REPLACEMENTS. AND THIS HAS BEEN USED TO LESSEN OUR DEPENDENCE ON DEBT THAT FUNDING ANY KIND OF REPLACEMENTS WERE ABLE TO KIND OF CASH FUND THESE THROUGH THIS FUND. THIS IS JUST A QUICK BREAKDOWN OF WHAT'S BEEN SPENT YEAR TODAY. THIS FISCAL YEAR, ALMOST $8 MILLION WE SPENT AND THAT'S JUST WITH FLEET REPLACE VEHICLE REPLACEMENTS. H FACTORED PLACEMENTS, ROOF REPLACEMENTS. VARIOUS OTHER ITEMS TO OUR FACILITIES ACROSS THE CITY. NEXT WE HAVE OUR AIRPORT FUN. SO EACH YEAR WE ALWAYS MENTIONED THE AIRPORT DOES REINVEST IN ITS CONSTRUCTION FUND FOR THE TRANSFER OVER THERE EACH FISCAL YEAR. NO LONGER SEES ANY KIND OF GENERAL FUND SUBSIDY. AND THEY'RE SUPPLEMENTALS THIS YEAR ROUGHLY ABOUT 930 GRAND. UM IN THIS BUDGET, AND WITH ALL THAT BEING SAID THERE IS STILL SHOWING AT LEAST A SMALL SURPLUS ABOUT 150 GRAND. UM, SO THE REVENUES IN THAT FUND HAVE BEEN FAIRLY STRONG OVER THESE LAST FEW YEARS, INTERPRET THE SURPLUS. STAYS IN THE AIRPORT FUND. CORRECT? YES, SIR. THANK YOU. ALRIGHT NEXT THESE LAST FEW SLIDES AND FINISH THIS UP. WE'LL GO THROUGH OUR COMPONENT UNITS. WE START THIS OFF AT THE HOTEL TAX FUND. SO AS YOU ALL OF YOU MAY OR MAY NOT KNOW, UM THAT REVENUE FROM THAT FUND CAN ONLY BE SPENT ON SPECIFIC ITEMS. UM ONE OF THOSE ITEMS, AS EXAMPLE, BEING WE FIND A LARGE MAJORITY OF THE MURAL ON THE SILOS ACROSS THE STREET RESPONDED WITH A LOT OF HOTEL TAX DOLLARS. FOR THE END OF FISCAL YEAR. 23. WE'RE LOOKING AT IT. AN ESTIMATE OF ABOUT 2.6 MILLION AND TAX COLLECTION. UM THAT FUND HAS COME BACK STRONG FROM ITS KIND OF DECLINE IT HAD FISCAL YEAR 2021 YEARS AFTER THE PANDEMIC.[01:45:06]
ABSOLUTELY FUN HAS COME BACK RELATIVELY STRONG. SO ALSO FUNDED WITH HOTEL TAX BONUSES ARE CVB. THIS YEAR. THEY'RE OPERATING COSTS ARE UP ABOUT 270 GRAND. MOST OF THAT IS DUE TO THE SUPPLEMENTALS THAT THEY HAVE IN THIS YEAR'S BUDGET. THOSE ARE ABOUT 250 RAND OF THAT TUNE IN 70. THOSE ARE LISTED THERE. UM IT'S MORE MERCHANDISE FOR THEIR STORE STOREFRONT. A COUPLE OF POSITIONS AND DIGITAL CONTENT COORDINATOR AND A PART TIME COORDINATOR. THIS IS JUST KIND OF A BREAKDOWN OF THEIR BUDGET. UM COUPLE OF PRIOR YEAR ACTUALS WHAT'S PROPOSED THIS YEAR? THERE'S WELL AS THOSE STAFFING NUMBERS, WHICH INCLUDE FOR 24, THAT NEW DIGITAL CONTENT COORDINATOR IN THAT NEW PART TIME COORDINATOR POSITION. NEXT UP. WE HAVE OUR E D. C M E. D.C. UM SO THEM AND CDC BOWL SHOWING THE SAME AN ESTIMATED COLLECTIONS FOR SALES TAX BECAUSE THEY EACH SPLIT THAT ONE CENT OF SALES TAX. FOR FISCAL YEAR 23 WE'RE LOOKING AT ABOUT 43.3 MILLION AS AN ESTIMATE. AND THEN. ABSOLUTELY IS JUST A BREAKDOWN OF THEIR BUDGET. AGAIN WHAT THEY'RE BRINGING IN SALES TAX, THEN THEIR EXPENDITURE SIDE. THAT I WILL ALSO MENTIONED THAT ROADWAY. INFRASTRUCTURE THAT WE IMPLEMENTED THE COUNCIL IMPLEMENTED. I BELIEVE IN 23.
WE'RE PROJECTING THAT TRANSFER TO BE ABOUT 500,000 FROM BOTH THE D C AND C D C TO THE STREET CONSTRUCTION FUND. FISCAL YEAR. 24 WE'RE PROJECTING THAT TO DOUBLE TO ABOUT A LITTLE OVER A MILLION DOLLARS A PIECE. THIS IS JUST THE. STAFFING FOR THE NBC WILL MENTIONED IN 24. THEY ARE POSING TO ADD A NEW POSITION IT BE A SECOND SENIOR VICE PRESIDENT. OVER THERE. THEN THE CDC SIDE AS I MENTIONED SAME SALES TAX NUMBERS THAT SHOULD NOT TAKE THE SPHERE, 21 24TH. I APOLOGIZE FOR THAT. AND THEN AGAIN KIND OF A BREAKDOWN OF THEIR REVENUES AND EXPENDITURES , AND THEY HAVE A MODEST STAFFING LEVEL OF TWO PEOPLE OVER THERE. AND THEN THE MOMENT YOU'VE ALL BEEN WAITING FOR SLIDE. 94 94 CAN WRAP IT UP HERE AND STOP LISTENING TO MY MONOTONE VOICE THROUGH THIS AND SO A COUPLE OF WEEKS AGO, UM, ON THE FIRST OF AUGUST, WE HAD THAT TAX RATE RECORD VOTE. THAT'S WHERE YOU KIND OF SET THE TEXT CEILING AND THE LIMIT. WE COULD GO TO AS YOU SAW HERE. PROPOSED TAX RATE IS A LITTLE MORE THAN A CENT LOWER THAN THAT CEILING, RIGHT? I BELIEVE THE CEILING WAS 430. WE'RE PROPOSING 4 TO 7. SO COMING UP THIS NEXT TUESDAY, WE'LL HAVE ANOTHER CITIZEN INPUT MEETING. WE HAD ONE OF THOSE BACK IN APRIL. AND THAT KIND OF ALSO HAD THAT BUDGET SURVEY IN IT. ABSOLUTELY BE ANOTHER OPPORTUNITY FOR CITIZENS, THE VOICE THEIR OPINION ON THE UPCOMING FISCAL YEAR 24 BUDGET MM. AND THEN THE BIG DAY, SEPTEMBER 5TH. THAT'S WHEN YOU HAVE THAT BUDGET TAX RATE PUBLIC HEARING. UM AND THAT'S ALSO WHERE HOPEFULLY WE HAVE A VOTE TO ADOPT THE BUDGET FOR FISCAL YEAR 24 AS WELL AS THE TAX RATE.
AND THEN ALSO INCLUDING THAT WILL BE AN ORDINANCE FOR ANY BE CHANGES IN OUR RATE SCHEDULES THERE. PUT THAT Y'ALL ANY QUESTIONS FOR ANY OF US APPEAR IN THE STAFF. THAT'S HERE. UM WE'RE HERE TO ANSWER ANY OF THOSE. I WAS GONNA ASK A QUESTION REGARDING, UM. PUBLIC SAFETY, POLICE AND FIRE. THE BUDGET WENT TO DEPARTMENTS DEPARTMENT HEADS BACK IN MARCH APRIL AND GOES TO SEE MAJOR NOW HERE, UM IS WHAT THOSE SPECIFIC DEPARTMENTS REQUESTED AND WHAT WE ARE DOING, ARE THEY SIGNIFICANTLY ALIGNED. IS THERE ANY DISCREPANCY IN THOSE? YOU'RE SIMPLY REFERRING TO THE SUPPLEMENTAL REQUEST MADE SO IN THE I THINK IN THE BUDGET DOCUMENT THAT YOU HAVE IN THE BACK PART OF THAT YOU'LL SEE THE SUPPLEMENTAL REQUEST. AND YOU'LL SEE YELLOW HIGHLIGHTED TEXT AND THEN WHITESPACE WHITESPACE MEANS IT DIDN'T MAKE THE CUT YELLOW MEANS WE DID ADDED TO THE BUDGET AS IN EVERY CASE EVERY YEAR. WE DON'T WE HAVE. WE DON'T HAVE ENOUGH FUNDING TO FUND ALL OF THE SUPPLEMENTALS WE HAD. I THINK HOW MUCH IN SUPPLEMENTAL REQUESTS 17 MILLION. WE HAD ABOUT SEVEN. YOU LITTLE LITTLE UNDER 7 TO 7 MILLION TO HAPPEN.
SO THEIR INVARIABLE ARE GOING TO BE THOSE THAT ARE. THEY DIDN'T MAKE THE CUT, BUT WHAT WE DO IS
[01:50:04]
WE MEET WITH ALL OF THEM. WE SAY HERE'S HOW MUCH WE HAVE HERE IS WHAT WE'RE LOOKING AT. WE GO BACK TO THEM AND SAY, PICK YOUR POISON. IF WE DON'T GET EVERYTHING YOU WANTED IS THIS YOU KNOW, JIVE WITH WHAT YOU'RE TRYING TO DO. AND, UM, SO NOT EVERYBODY GOT WHAT THEY WANTED.BUT WE DO THINK, THOUGH, THAT THE BUDGET PROPOSED DOES ALIGN WITH THE COUNCIL'S PRIORITIES, GIVEN THE AMOUNT OF MONEY AVAILABLE. OH I'LL JUST THROW OUT THERE THAT, YOU KNOW, ESPECIALLY LET'S TALK ABOUT POLICE GOT SIX PRIMARY FIRST RESPONDERS. THEY ASKED FOR SIX PRIMARY FIRST RESPONDERS SO THAT THAT THAT NEED WAS MET RIGHT TO DETECTIVES WERE ADDING, UM ASSORTED THAT WAS REQUESTED ON THE POLICE SIDE AND THEN ON THE FIRESIDE WE'RE ADDING JUST WITH NO STATIONS BEING ADDED, WE ARE JUST ADDING. SIX FOR EXPANDED BAR SERVICE, YOU MIGHT RECALL IN OUR DISCUSSIONS. UM ON THE FIRESIDE. WE WANTED TO ADD MORE BENCH. I THINK THAT WAS THE TERM THAT SYSTEM MANAGER SHELTON USES TO ADD MORE FIREFIGHTERS TO THE BENCH SO THAT THEY HAVE THE AVAILABLE AVAILABILITY OR THE ABILITY TO DO MORE THINGS THAT THEY NEED TO STAFF UP MANNING AND A STATION. THEY HAVE MORE FLEXIBILITY TO DO THAT. THERE'S A LOT OF SICK TIME AND VACATION TIME THAT WE HAVE TO FACTOR IN, AND SO THAT GIVES THEM SOME MORE CUSHION. SO THERE'S A LONGER TERM PLAN TO ADD TO THAT BENCH, WHICH MEANS ADDING FIREFIGHTERS EVEN THOUGH WE DON'T HAVE A FIRE STATIONS IN THIS CASE THAT MARK HOLLOWAY TALKED ABOUT. I'M GOING TO ASK GREG CONLEY TO COMMENT, MAYBE ON THE POLICE BECAUSE OF THE DETECTIVE SIDE. WE KNOW HER A LITTLE BIT SHORT ON DETECTIVES, OR WE WERE A LITTLE BIT LOWER THAN WE WANTED TO BE, SO WERE GRADUALLY ADDING THEM.
THEY'RE VERY EXPENSIVE, ADDING NEW PUBLIC SAFETY'S WARNED THE PUBLIC SAFETY POSITIONS ARE VERY EXPENSIVE PROPOSITIONS SO WE TRY TO DO IS PHASE IN OR ADDED IN GRADUALLY OVER TIME. THE GREAT MAYBE COMMENT ON THAT WE HAD TO TAKE A LOOK AT IT AND SEE YOU KNOW WHAT WE WERE GOING TO BE ABLE TO ADD THIS YEAR AND I WORKED WITH THE POLICE CHIEF TO FIND OUT WHAT YOU KNOW. THE BIGGEST PRIORITIES WERE. WHAT WERE HIS NUMBER ONE THINGS THAT WE HAD HIS ASKS THAT WE HAD TO ADD. THERE'S YOU KNOW, THERE'S A THERE'S FORMULAS THAT ARE USED ON THE POLICE SIDE DETERMINE STAFFING WHETHER FIRST RESPONDERS DETECTIVE DIVISION WE'VE MADE SIGNIFICANT INROADS OVER THE LAST FEW YEARS IN ADDING DETECTIVES. WE'RE STILL A LITTLE BEHIND. BUT HE HAD LOOKING AT THE AVAILABLE DOLLARS WE FUNDED THE THINGS WERE HIS HIGHEST PRIORITY, AND WE'RE STILL ABLE TO ADD SOME DETECTIVES SO THAT YOU KNOW THAT THAT WORKED OUT FOR THEM. ONE THING THAT WE DID ON THE FIRE SIDE OF IT. ALSO MENTIONED IS AT A NUMBER AT ANOTHER AMBULANCE TO PUT ACTUALLY INTO SERVICE, NOT AS TO RESERVE AH, SO THAT THAT TOOK A BIG CHUNK AND WE ALSO HAD THE FACTOR IN WHAT WE'RE GOING TO HAVE TO DO IN FUTURE YEARS. AS THESE AS STATION EIGHT COMES BACK IN LINE, AND WE ANTICIPATE NEW FIRE STATIONS COMING SO ALL THAT WAS FACTORED IN. THAT WAS A QUESTION THAT WAS GOING TO HAVE BECAUSE I DIDN'T SEE THAT ON HERE. SO THAT'S ALREADY DONE.
THE ADDING OF AMBULANCES AND YES , WE'VE ADDED ANOTHER ANOTHER AMBULANCE IN THIS IN THIS BUDGET AND THAT WILL BE STAFFED. UH SO FIRST I'M PUTTING ANOTHER ANOTHER ONE OUT INTO THE COMMUNITY. YES WE'VE WE'VE WE'VE PURCHASED OVER THERE. IT'S PART OF THE BUDGET. NOTICE CENTER POLICE THAT THERE'S THERE IS A REQUEST FOR AN S. R O UM IS IT DID NOT GET FUNDED IS THAT ONLY ONE S R 01 AND THAT GOT PUT IN INITIALLY BECAUSE WE HAVE A REQUEST COMING FROM FROM FRISCO.
BUT AS WE SPOKE WITH THE DISTRICT AND WORKING WITH MISS D IN BOTH MSD IN FRISCO ISD E. WE ACTUALLY WENT IN A NEW DIRECTION THAT WE TRY TO KEEP THOSE TWO ABOUT EQUAL. SO WE'RE TREATING BOTH OF THEM THE SAME, AND YOU KNOW, INITIALLY MSD WAS IF YOU GIVE ONE TO FRISCO. WE WANT ANOTHER ONE. BUT WE CHIEF SCHELLENBERG. REORGANIZE HOW THE PATROL DIVISION IS WORKING. AND HERE WE'RE TALKING ELEMENTARY SCHOOLS WERE WORKING WITH THOSE PRIMARY SCHOOLS AND HAVING OFFICERS TO, UH TO GO TO THE SCHOOL SPEND TIME THERE. ONE DOESN'T MAKE A VERY BIG DENT. UH WE FELT LIKE WE HAD A PROGRAM THAT WOULD BETTER ADDRESS THE NEEDS. OF ACTUALLY HAVING OFFICERS STOPPED BY EVERY SCHOOL EVERY DAY AND TO KEEP TRACK OF THAT NOT ONLY TO SAY, HEY, STOP BY WHEN YOU CAN, BUT ACTUALLY TO ASSIGN OFFICERS TO STOP BY EACH SCHOOL EACH DAY AND TO LOG THAT TIME THAT THEY SPEND THEIR THANK YOU. WE DID, UM, FUND, I THINK ALL THE PRIMARY FIRST RESPONDERS THAT WERE REQUESTED. YES. SHOULD HAVE ASKED HIM MORE POINTED QUESTIONS, AND THAT WAS WHERE I WAS GETTING AT. THE OTHER QUESTIONS. UH I JUST SAY ONE THING I WAS HOPING WE'D SEE IN
[01:55:05]
HERE IS SOMETHING FOR HOUSING. WE'VE CONTINUED TO SEE A DETERIORATION IN SATISFACTION IN OUR UM, VARIETY OF HOUSING AND ARE AFFORDABLE HOUSING. AND WE'VE TALKED ABOUT IT IN OUR PRIORITIES AND WE'VE TALKED ABOUT IT IN OUR GOALS. AND, UH WHAT? WE'VE DONE SOME SCATTERED SHOOTING OF FUNDING WHEN WE GOT IT AVAILABLE. WE STILL STRUGGLED TO SHOW AN ONGOING COMMITMENT.UH TO DEALING WITH OUR HOUSING STOCK. AND SO I WAS HOPING WE WOULD FIND SOME WAY TO DO THAT IN THIS BUDGET. THANK YOU, COUNCILMAN BELLER, I WOULD SAY, UNDERSTAND. WE CERTAINLY WILL WORK. OUR STAFF WILL CONTINUE TO WORK WITH WAYS TO IDENTIFY. FUNDING OPPORTUNITIES AS THEY ARISE. WE DO HAVE FUNDING SOURCES THAT ARE OUTSIDE OF OUR GENERAL FUND BUDGET. WE HAVE USED GENERAL FUND MONEY TO FUND IN A COUPLE OF YEARS AGO TO SORT OF SEED FUND IF YOU WILL, OR COMMUNITY LAND TRUST IF WE PUT A MILLION DOLLARS IN THERE, WE HAVE TOURS MONEY THAT CAN BE USED HERS ONE CAN USE. I BELIEVE SOME OF ITS FUNDING FOR AFFORDABLE HOUSING. RELATED PROJECTS. THAT'S A MATTER OF THE TOURIST BOARD AND THE COUNCIL, ULTIMATELY TO SAY, HEY, WE WANT TO DESIGNATE SOME OF THAT FUNNY. SAME WITH THE NCDC, THE CDC ONE OF THEIR BOARDS, PRIORITIES HAS BEEN AFFORDABLE HOUSING, AND THAT COULD BE A VERY GOOD SOURCE OF FUNDING. FOR EITHER COMMUNITY, LAND TRUST OR OTHER TYPES OF HOUSING RELATED PROJECTS AS THEY COME, AND AS YOU KNOW, THEY HAVE RECENTLY PLEDGED FUNDING FOR THE REMNANT DEVELOPMENT. NOW THE REMNANT DIDN'T MAKE THIS YEAR, SO TO SPEAK, BUT THEY ARE GOING TO BE BACK AGAIN NEXT YEAR, AND WE FULLY EXPECT THAT THAT PROJECT WILL MOVE FORWARD, WHICH IS A GREAT PROJECT. UM THOSE OPPORTUNITIES PRESENT THEMSELVES NOW, INSOFAR AS THE COUNCIL WANTS TO MAKE A GENERAL FUND CONTRIBUTION TOWARD HOUSING PER SE, WHETHER IT'S SOME SORT OF PUTTING IT IN SINKING SOME MONEY IN THE COMMUNITY LAND TRUST, ETCETERA. YOU CAN DO THAT. WE HAVE A BALANCED BUDGET. SO YOU GOTTA YOU GOTTA EITHER INCREASE THE TAX RATE TO COME UP WITH SOME MORE REVENUES. WHICH YOU CAN DO OR YOU CAN. WE CAN REDUCE FUNDING SOMEWHERE ELSE AND TO MAKE UP AND ALLOW A KATE THOSE FUNDS OTHERWISE, WHAT I'D RECOMMEND IS AS THE YEAR PROGRESSES, WE CAN WE HAVE THOSE OTHER FUNDING SOURCES AND AS OUR SALES, TAX NUMBERS AND PROPERTY TAX NUMBERS COME IN THROUGHOUT THE YEAR, IF THEY LOOK LIKE THEY'RE DOING WELL, WE CAN TAKE SOME OF THAT EXCESS MONEY AND PUT IT INTO A COMMUNITY LAND TRUST BANKS, SO TO SPEAK. THERE ARE OPTIONS AND WILL CONTINUE TO WORK WITH YOU ON THAT, BUT I HEAR COUNSELING MELLORS POSITION LOUD AND CLEAR. AND I KNOW THE COUNCIL WANTS TO DO SOMETHING WITH AFFORDABLE HOUSING. AS WELL . WE DO HAVE TOOLS THAT YOU'VE ADOPTED TO HELP US. THOSE TOOLS HAVE ALLOWED US TO USE SOME FUNDING THE PRC BEING ONE OF THOSE TO HELP WITH SOME OF THE REMNANT PROJECT, OR I SHOULD SAY THE OTHER PROJECT IN VIRGINIA.
PALLADIUM. SPECIFICALLY AND THAT WAS THE WHOLE PURPOSE OF THAT TYPE OF A PROGRAM. SO UM, WE HEAR YOU LOUD AND CLEAR AND WE'LL SEE WHAT THE COUNCIL WOULD LIKE TO DEAL WITH THAT, AS THE YEAR GOES ON, AND WE WILL COME FORWARD WITH THOSE RECOMMENDATIONS. WELL, WE CAN JUST ADD THAT WE, UM ON CDC AS THE HAZAN'S. WE'VE BEGAN A DIALOGUE WITH THAT BOARD OF REGARDING THIS VERY ISSUE AND HAVING A LOOKING AT IT. NOT THE SAME EXTENT, NECESSARILY AS PARTS. BUT FORMULA. UH AS AS WE DO WITH PARKS, WHERE THERE IS SOME PERCENTAGE UM, THAT IS DEDICATED TO THAT VERY ISSUE ON AN ANNUAL BASIS, SO THOSE CONVERSATIONS ARE BEING HAD NOW.
AND THAT WAS SPURRED BY THE LAST COUPLE OF PROJECTS THAT CAME BEFORE THEM AND JUST TALKING ABOUT. YOU KNOW, THIS NEED COMES UP EVERY YEAR, AND MAYBE IF WE HAD THEY HAD A PLANNING FOR IT ON A CONSISTENT BASIS. IT WOULD YEAH. WOULD SOLVE WHAT YOU'RE ASKING TO CATCH WE I THINK WE'VE GOT A CATCH 22 AND THAT WE DON'T HAVE FUNDS TO IMPLEMENT INTO A THING WHEN IT COMES UP SOMETIMES AND WE'RE NOT ALLOCATING FUNDS BECAUSE WE DON'T HAVE A PLAN THAT SAYS THERE'S A DEMAND FOR FUNDS AND I WOULD THROW IT INTO THE CONVERSATION ABOUT THE BOND . WE'VE SEEN. OTHER COMMUNITIES DO BONDING FOR AFFORDABLE HOUSING, AND I'M SITTING HERE. CONTEMPLATING WHETHER OR NOT TO PUT TOGETHER A BOND COMMITTEE NEXT MONTH. WE'VE GOT NO PLAN FOR HOW TO UTILIZE FUNDS. IF THAT WAS AN OPTION, AND SO I JUST THERE'S A CATCH 22 AND THERE WERE WE HAVE TO MAKE A PLAN AND THIS IS HOW WE'RE GOING TO ADDRESS IT. AND THEN BUDGET FOR IT, OR BUDGET FOR IT SO THAT WE CAN MAKE A PLAN OF HOW TO ADDRESS IT, AND WE'RE I GUESS. MY FRUSTRATION IS THAT WE HAVEN'T SEEMED TO HAVE DONE EITHER. WE'RE WE'RE BEHIND ON BOTH. UM, IT'S THANK YOU. STAFF.
THANK YOU FOR ALL THE WORK AND EFFORT THAT GOES INTO THIS. IT'S CERTAINLY A MONUMENTAL TASK. UM APPRECIATE IT AND HOPE THAT FOR THOSE RESIDENTS OUT THERE THAT THAT ARE ENGAGED THAT THEY TAKE
[02:00:05]
THE OPPORTUNITY. TO COME IN DURING PUBLIC COMMENTS AND EXPRESS THOSE OPINIONS IN A CONSTRUCTIVE WAY HERE. UM, WOULD BE GREAT AND YES, WE'LL BE MOVING THROUGH THE PROCESS. WE HAVE THE CALENDAR, SO WE KNOW WHEN THOSE MEANINGS ARE THEY'VE BEEN IDENTIFIED, SO WE WILL MOVE ON. THANK YOU, EVERYONE. THANK YOU, PAUL. TAKE YOUR STAFF MARK TREVOR'S THANK YOU. I WOULD LOVE IF YOU COULD ADD A THIRD. TREVOR THAT WOULD BE FANTASTIC. MHM ALRIGHT. I IS NOT HAVE THE AGENDA IN FRONT OF ME IS THERE THERE'S NOTHING ELSE WE'RE GOING TO DISCUSS. WE DO NOT HAVE AN EXECUTIVE SESSION. MOTION TO ADJOURN* This transcript was compiled from uncorrected Closed Captioning.