Aug 14, 2020 City Council Work Session on 2020-08-14 8:30 AM - Budget Work Session

[CALL TO ORDER]

[00:00:07]

ORDER TODAY IS FRIDAY, AUGUST 14 37 IN THE MORNING TO 20 TENNESSEE STREET IN TEXAS. THIS IS A CITY COUNCIL WORK SESSION BROADCAST SPECTRUM CHANNEL 16 AND 18 1ST 99. IS THERE ANY

[PUBLIC COMMENTS ON AGENDA ITEMS]

[Budget Work Session]

MR HOLLOWAY HAS AVAILABLE TO HIM. REALLY TIME IF YOU WILL, WITH TECHNOLOGY THAT WE HAVE A GREAT. I WOULD START OFF. I'LL MAKE SOME COMMENTS. YOU HAVE TO SUFFER THROUGH THOSE FOR A LITTLE BIT. BUT I WILL TRY NOT TO BE TOO VERBOSE. BUT I THINK IT'S IMPORTANT SORT SET THE TONE AND THE SORT OF THE BIGGER PICTURE ABOUT OUR BUDGET APPROACH FOR THIS YEAR. MR HOLLOWAY WILL THEN TAKE OVER AND PRESENT DO MOST OF THE LION SHARE OF THE WORK. WALK YOU THROUGH THE PRESENTATION. AND WHAT TOUCH ON HIGHLIGHTS A SWELL AS THE REVENUES EXPENDITURES AND THEN DEPARTMENTS ITSELF AS WELL AS OUR COMPONENT UNITS. WAIT WILL MOVE THROUGH THIS AS QUICKLY AS POSSIBLE. BUT WE WANT TO GIVE YOU ALL THE OPPORTUNITY OR ANY QUESTIONS YOU MIGHT HAVE FOR US SO. WE WILL FOLLOW YOUR LEAD ONCE WE GET PAST THE INITIAL PRESENTATION. SO WITH THAT. GOOD MORNING, MR MAYOR, MEMBERS OF THE COUNCIL AND PLEASED TO KICK OFF THIS PRESENTATION OF OUR BUDGET PROPOSAL FOR FISCAL YEAR IN THE SEPTEMBER 30TH.

2021 HARDLY WERE SAYING 2021. HAS ALWAYS LET ME OPEN ONCE AGAIN BY YANKEE MARK HOLLOWAY.

THE ENTIRE STAFF FINANCE DEPARTMENT FOR THEIR HARD WORK AND WORKING WITH ALL OF HER OPERATING DEPARTMENTS OF PREPARING THE BUDGET, DOCTOR. WHICH IS REALLY A CULMINATION OF A COMPLICATED SIRI'S SMALLER BUDGET PREPARATION ACTIONS INFORMING THIS PROPOSAL. AGAIN, SO THEY'RE NOT HERE. MOST OF HIS STAFF ARE NORMALLY SITTING IN THESE CHAIRS. WE HAVE TRIED TREVOR HERE FROM TREVOR. WHAT? WE HAVE BOTH TROUBLES HERE. BUT A NUMBER OF HIS OTHER STAFF MEMBERS WERE NOT HERE. BUT I DO WANT TO PUBLICLY THANK THEM FOR THE WORK THAT THEY'VE DONE PREPARING DEVICES WE GET TO THIS POINT. THANK YOU. STAFF TREVOR AND THE OTHERS. OPENED LAST YEAR'S BUDGET WORKSHOP COMMENTS THAT THE FISCAL YEAR 20 BUDGET THIS CURRENT BUDGET WAS MORE OF A CONTINUATION, OF COURSE FROM OUR PREVIOUS BUDGETS. THOSE BUZZ IT BUDGETS WERE GENERALLY MARKED BY STEADY GROWTH AND REVENUES, LARGELY AS A RESULT OF BREAKNECK GROWTH IN OUR COMMUNITY. SO HOW THINGS HAVE CHANGED. IN FEBRUARY OF THIS YEAR, WE WERE ALREADY SEEN SOME COOLING OF RESIDENTIAL CONSTRUCTION BUILDING ANY LEGISLATIVELY INDUCED LOSS IN A PORTION OF OUR FRANCHISE FEES. IN THE KOBE 19 PANDEMIC TOOK FULL FORCE IN MARCH. MOST FOLKS ANTICIPATED A RELATIVELY SHORT INTERRUPTION. WE'RE NOW IN HER FIFTH MONTH OF LIVING WITH A HEADWIND THAT IS GREATLY ALTERED OUR ECONOMIC LANDSCAPE. AND IT LOOKS AS IF WE'RE GOING TO BE LIVING IN THIS ANY ALTERED STATE OF AFFAIRS RELEASE THE REST OF THIS YEAR.

THIS YEAR'S BUDGET IS ANYTHING BUT A CONTINUATION, OF COURSE. BUT IT ALSO IS NOT AS BAD AS IT COULD BE. OUR SALES TAX IS A RELATIVELY STABLE GIVEN THE WRECKAGE RESTAURANT, OUR ENTERTAINMENT PORTIONS OF THE RETAIL INDUSTRY. IT APPEARS THAT THIS IMPACT IS SOMEWHAT OFFSET BY A SURGE IN BIG BOX RETAIL AS WELL AS ONLINE PURCHASES FOR WHICH WE ONLY RECENTLY BEGAN RECEIVING SALES TAX REVENUE. WE NEED TO STAY CAUTIOUS, AND HERE'S WHY. THE U. S ECONOMY SHRANK 9.5% IN THE SECOND QUARTER FROM THE PREVIOUS QUARTER. THAT'S THE STEVENS IMPLYING ON RECORD. SOME STATES AND LOCAL GOVERNMENTS HAVE SEEN REVENUE DECLINES OF 15 TO 20% IN SOME PLACES. AS FEDERAL AID BEGINS TO RUN OUT. AND I MIGHT NOTE THAT AIRLINES AND LARGE CHUNKS OF THE SERVICE INDUSTRY ARE ALREADY POISED FOR MASSIVE LAYOFFS. WE MAY SEE LOWER INCOMES AND THUS APARTMENT SHIELDED FROM THE WORST EFFECTS OF THE ECONOMIC DOWNTURN. AND THEREFORE WE MAY SEE SOME SLOWDOWN. OUR SALES TAX

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THAT MEANS MORE MAINTENANCE AND MORE POLICE AND FIREFIGHTERS PROVIDE PUBLIC SAFETY COVERAGE OVER THIS EXPANDING AREA. YOU'RE ADDING FIVE NEW POLICE OFFICERS. FOUR OF THOSE FIRST RESPONDERS AND ONE OF OUR OWN SERGEANT, SCHOOL RESOURCE OFFICER, SERGEANT. AND 32 FIRE STAFF. 22 FIREFIGHTERS IN ONE NURSE PRACTITIONER. OF COURSE. WHAT MAKES ME THE GREATEST QUALITY OF OUR DEVELOPMENTS IN THE SPACE IN BETWEEN LARGELY MEETING OUR PARKS AND OPEN SPACES, RESIDENTS, ONE PART QUALITY SPACES, AND WE HAVE A $200 MILLION MARCUS PARKS MASTER PLAN RECENTLY ADOPTED BY THE COUNCIL TO MEET THESE DEMANDS. IN THE RECENT BOND ELECTION, VOTERS APPROVED $91 MILLION IN PARKS AND RECREATION CAPITAL PROJECTS, AND THAT WILL CERTAINLY MAKE A MAJOR DENT IN OUR LARGER MASTER PLAN. I'M GONNA GIVE YOU A COUPLE OF HIGHLIGHTS FROM THE BUDGET PROPOSAL YOU'LL HAVE BEFORE YOU TODAY YOU WILL DIE A DEEPER INTO THOSE AS WE GO THROUGH THE PRESENTATION MORE DETAIL. PROPOSED GENERAL FUND BUDGET OF $159 MILLION. IS 641 MILLION IN ALL FUNDS AND INCLUDES A TAX RATE REDUCTION OF LITTLE MORE THAN HALF SET. FROM 0.5162 POINT 508 THIS IS THE EFFECTIVE RANGE. FIRST TIME THE CITY IS ADOPTED AN EFFECTIVE RATE IN RECENT MEMORY. I REMIND THE COUNCIL IN THE PUBLIC, HOWEVER, THAT THE ANNUAL EFFECTIVE RATE IS A FUNCTION OF MANY FACTORS AND COMPETING PRIORITIES. IF WE ARE TO CONTINUE THE HIGH LEVEL SERVICES WE OFFER, DEPENDING ON WHEN A NEW FIRE STATION OR CASH FUNDED CAPITAL OUTLAY, ADVANCES WE CANNOT ALWAYS RELY ON OR EXPECT. EFFECTIVE RATE BUDGETS EVERY YEAR. PROPOSED BUDGET INCLUDES $250 MILLION IN CAPITAL IMPROVEMENTS. BUDGET INCLUDES 1.5 MILLION FOR STREET REPAIRS AND MAINTENANCE, THE ABSOLUTE MINIMUM NECESSARY TO KEEP UP WITH SOME OF OUR AGENTS, STREETS AND INFRASTRUCTURE. AS MENTIONED.

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ONCE WE RECEIVE THOSE AND DO ALL AFTERNOON SEE MANNERS BUDGET. SEE ANDREW MEETS WITH THE DEPARTMENT'S MEETS WITH FINANCING AND IT PUTS SPORT PROPOSED BUDGET THAT YOU SEE TODAY. THAT'S WHEN IT BECOMES THE CITY COUNCIL'S BUDGET. AT THAT POINT DURING AUGUST AND SEPTEMBER, WHERE WE HAVE THE WORKSHOP WE HAVE, WE WILL HAVE TO BUDGET PUBLIC HEARINGS, ONE PUBLIC HEARING ON THE TAX RATE AND THE ADOPTION OF THE BUDGET OF THE TAX RATE. AND AFTER THAT IT COMES BACK TO US WHEN WE PRODUCED A BUDGET BOOK, DON'T GET ANOTHER YEAR. ALWAYS LIKE

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WE HAVE TWO PLANS THE GENERAL OBLIGATION DEBT SERVICE PLAN. TALK A LOT ABOUT THAT, ESPECIALLY DURING OUR RECENT BOND ELECTION. THIS PLAYING OUTLINES ARE DEAD CAPACITY IN OUR ANUS RATE OVER TIME. TEACHERS THAT WE PAY FOR THE LARGE PROJECTS THAT WE HAVE IN THE PIPELINE. WE ALSO HAVE A JEWEL FROM PLAN THAT MIRRORS IT. IT'S AN OPERATING PLAN TO MAKE SURE YOU CARRY OUT OPERATIONS IN THE LONG TERM, WHILE ADDING PERSONNEL MATERIALS FOR OUR GROWTH. THAT WE'RE GONNA BE BRINGING ON HIS PART OF THE CIA. HERE'S MAKES FROM THE COUNCIL WITHOUT BUDGET GUIDELINES. THE COUNCIL ADOPTS THIS DOCUMENT BEGINNING OF OUR BUDGET CYCLE TO HELP US GET TO OUR PROPOSED BUDGET. DID YOU SEE TODAY? THESE WERE ADOPTED PRE PANDEMIC. BUT THE PHILOSOPHY IS SOUND, AND IT REALLY STILL GOT IN THE DEVELOPMENT DURING THESE TIMES. YOU CAN SEE THAT FULLY FUNDED, BALANCED BUDGET INSIDE, MAINTAIN CONSERVATIVE TAX LEVY. WE'VE DEFINITELY DONE THAT THIS YEAR WITH OUR PROPOSED BUDGET BEING, YOU KNOW NEW REVENUE LATE RAY. POLICE FOR POLICE AND FIRE PERSONNEL PAY STRUCTURE BASED ON THEIR CURRENT MEAT FOR AGREEMENTS. WE HAVE MET THOSE OBLIGATIONS AND WE MAINTAIN OUR MINIMUM FUND BALANCES. UTILITY SIDE. WE ARE MAINTAINING THE SUSTAINABILITY OF OUR FUNDS AND DOING IMPLEMENTING THE RATE ADJUSTMENTS AS RECOMMENDED BY OUR GREAT STUDIES. IN RATE ADJUSTMENTS, SPEAKING OF RICH STUDIES, WE HAD A FULL PRESENTATION LAST YEAR DURING THE BUDGET WORKSHOP ON FOUR GREAT STUDY. DON'T THAT TIME. ON THE WATER. WASTE WATER UTILITY. WE'RE GOING TO IS OUR INTENTION TO DO ANOTHER ONE OF THOSE STATES TO THOSE EVERY TWO YEARS, SO WE'RE GOING TO FOLLOW WHAT THOSE RATES, STUDIES SAY. THINGS HAVE CHANGED A LITTLE BIT. THEY ALWAYS DO THE WATER, RIGHT? WE'RE ANTICIPATING TALKING ABOUT THAT WHOLE WELL, BUT WE'RE NOT GOING BE INCREASING OUR WATER RATES THIS YEAR OR NEXT WATER. MR IS NOT PASSING THROUGH A WATER RATE INCREASED THIS YEAR, THEY WERE PASSING ALONG A SMALL WASTEWATER RATING WILL PASS THAT ALONG, ACCORDING TO OUR PLAN, BUT I HAVE SPOKEN. AND GOING OVER. THESE CHANGES WITH OUR GREAT CONSULTANTS, AND WE CAN YOU KNOW PASTOR, NO WATER RATE INCREASE IN JUST THE MINIMUM WAGE RATE INCREASED. SO WE'RE ONLY PASSING ALONG. THEY COST. SO. WITH THAT, UM, IF YOU RECALL, WE HOLD A BUDGET INPUT HEARING BACK IN MAY. THIS IS USUALLY HELD IN APRIL, BUT WE MOVED BACK THIS YEAR BECAUSE PANDEMIC TO TRY. GET MORE PEOPLE IN, BUT IT STILL WASN'T EVEN POSSIBLE THAT POINT BUT THAT'S HOW WE ALSO KICKED OFF AN ONLINE SERVING TWO WAY SHOW YOU THE RESULTS OF IT EVERY YEAR. IT'S A VIRTUAL TOWN HALL.

LET OUR CITIZENS. TELL US WHAT THEIR PRIORITIES ARE FOR THE BUDGET. IT RAN ONLINE FOR WELL OVER A MONTH. THE RANKINGS AND COMMENTS ARE AVAILABLE ONLINE, AND WE'LL BE HAPPY TO PROVIDE YOU WITH COPIES OF ALL THIS. THE HARD COPY'S RESULTS IF YOU WANT THEM. THIS YEAR WAS A VERY SUCCESSFUL YEAR WITH OUR OWN WAY. WE HAD 235 RESPONSES MAY NOT SOUND LIKE A LOT, BUT WE DON'T HAVE 100 YEARS BEFORE, SO WE HAD QUITE A FEW MORE THIS YEAR THAN LAST. WITH THIS, THE LOWER THE NUMBER, THE HIGHER THE FLOWERY TOP TWO PRIORITIES ARE PUBLIC SAFETY AND STREETS.

THAT SAME TO TOP PRIORITIES THAT WE'VE HAD EVERYTHING THAT WE'VE DONE THIS, HOWEVER, THEY DID FLIP FLOP THIS YEAR, IT HAD BEEN STREETS NUMBER ONE PUBLIC SAFETY NUMBER TWO, BUT THIS YEAR THEY DID FLIP FLOPS, AND I THINK THAT YOU'LL FIND. EVEN WITH A MODEST INCREASE TO THE ROLE. YOU'RE FROM BUDGET THIS YEAR THAT YOU'LL FIND THAT WE ARE TRYING TO ADDRESS THOSE CONCERNS AS BEST WE CAN. SO FORGETTING THE FULL BUDGET DETAILS. I WANT TO READ YOU.

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ONE OF OUR FUNDS IS HAVING SOME ISSUES. THE APEX CENTER. WE ARE GOING TO PLAN FOR DEFICIT IN THE APEX CENTER, SO WE TALKED ABOUT OUR REVENUES THAT WE'RE TRYING TO BUDGET CONSERVATIVELY ANY OF THE EXCESS THAT WE HAVE THERE FROM GEN. THOSE THAT DEFICIT BUT JUST BECAUSE OF THE WAY THEY'RE HAVING A VERY GOOD JOB OF CUTTING BACK ON THEIR EXPENSES, BUT THEIR REVENUES JUST ARE WHAT THEY NEEDED TO HAVE A COVER THOSE EXPENSES TO KEEP THAT OPEN. SO THE GENERAL FUND WILL NEED TO STEP IN BECAUSE THE APEX CENTER IS A GOVERNMENT FUND. QUESTION ON APEX WITH CHARGING PEOPLE WHEN IT'S OPEN. IS THAT WHY THE REVENUES HAVE COME DOWN? YES, THOSE WORK. YES, WE STOPPED CHARGING, OK? YEAH, WE SUSPEND SORRY WE SUSPENDED CHARGING FOR ALONG WITH STEVE, ABOUT A SIX WEEK PERIOD. YEAH. IS THAT THAT SAME TIME? SO IN SOME WAYS. IT'S A LITTLE BIT OF FROM A BUNCH OF PERSPECTIVE. IT'S A LITTLE BIT OF A DUAL HEAD BECAUSE WE'RE NOT MEETING THAT REVENUE DURING MONTHS. WE'RE CLOSED RIGHT AND TO BE FAIR TO THE PARTICIPANTS WERE ALSO LEADING MEMBERS. SO, YOU STILL WANT TO GET WORK? HEADWINDS COMES UP. NOTHING FOR FISCAL YEAR 21 WERE LOOKING AT IT AN OFFICIAL. YOU'RE 2021 PROBABLY GONNA BE REALLY TOUGH, RIGHT? PANDEMIC, HOPEFULLY MOVES ON AND REVEREND BEGIN TO COME BACK UP THROUGH THIS HOPEFULLY IS NOT A LONG TERM ISSUE BECAUSE A PIXAR WAS BEFORE IT WAS WAS MAKING A PROFIT EACH YEAR. BUILDING A NICE FUN BALANCE TO BE ABLE TO BE SELF SUSTAINABLE TO TAKE CARE OF ITS OWN. EQUIPMENT NEEDS ITS OWN APPRECIATION NEEDS BUILDING, SO WE WERE REALLY HAPPY WITH WHERE IT IS WHERE IT WASS, BUT WE ARE GOING TO HAVE TO PROBABLY SUPPLEMENT IN FISCAL YEAR 21. MAKE SURE IT STAYS YOU KNOW THE PERCENTAGE.

ATTRITION. PEOPLE WHO HAVE DROPPED OFF. SO AT OUR HEIGHT, WE WERE ABOUT 1500 MEMBERSHIPS.

AND RIGHT NOW WE'RE ABOUT 4000 WAY HAVE DEFINITELY WELL DROPPED OUT. AND DAILY PARTICIPATION IS PROBABLY. CAN'T REMEMBER OF THOSE OF THOSE. MEMBERSHIPS. 4000 THERE REMAINS THEY WERE GETTING REVENUE FROM THEM BECAUSE WE SUSPENDED RECEIVING PAYMENTS BECAUSE WE WEREN'T OPEN FOR A WHILE. RIGHT. SO EVEN THOUGH WE HAVE MEMBERSHIPS, YOU KNOW WE'VE GOT A 1/3 DROPPIN THE MEMBERSHIPS. THAT HURTS BAD ENOUGH, THEN EVEN OF THE MEMBERSHIP, WHO ARE GETTING REVENUES FOR AWHILE? ALL DISTRICT, CLARY. IS THAT UNDERSTOOD? BUT IF SOMEBODY HURT JUST WERE MAKING A PROFIT, ANY PRODUCT THAT IMPACT MAKES HIS WAY THAT ASIDE GOVERNMENT UNIT WE DON'T USE PROFITS, THEIR. NO DIVIDEND HERE. IT'S BETTER THAT ITS NET OPERATING, IT'S BASICALLY INCOME EXPENSES NECK. IT'S REINVESTED OR PUT PLACE THAT FUND BALANCE RESERVED. THAT'S WHAT PROBLEM WAS PROBABLY THE BEST WORK. I WOULD LIKE TO POINT OUT THAT LIKE LIKE I MENTIONED. THAT THAT FUNDS IS DOING WELL, AND THEY ARE REINVESTING IN THEMSELVES. THE GENERAL FUND IS NOT HAVING TO REINVEST IN THEIR BUILDING OPERATIONS OR OR THEIR EQUIPMENT THEY'VE BEEN ABLE TO HANDLE THAT STAIN THAT IN A VERY SHORT AMOUNT TIME. SO WE'VE BEEN VERY IMPRESSED WITH THE APEX ENTERING AND WHAT THEY'VE DONE. I'M ALSO ON BUDGET OPPORTUNITIES. WE ARE GOING TO BE ABLE TO ADD SOME STAFFING THIS YEAR IN THE GENERAL FUND ALONE, 13 POSITIONS ABOUT 13 HALF. YES 14

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THIS WAS OUR 2019 BOND PACKAGE WANTED COUNTRY. WHAT'S COMING UP FOR FISCAL YEAR 21 BEYOND MANY PROJECTS IN THAT BOND PACKAGE. THAT WILL REQUIRE YOU KNOW THOSE THOSE SALES OF BONDS, BUT YOU CAN SEE THAT WE'VE BEGUN QUITE A BIT. WE'VE ISSUED QUITE A BIT OF THOSE DOLLARS AT THIS POINT, AND WE'VE BEGUN. TO MOVE ON A LOT OF THESE PROJECTS. YOU KNOW SO THE DRASTIC CHANGES. VIRAL. I WOULD SAY NOT AT THIS POINT EVERY EVERY YEAR. I KEEP TELLING YOU, I THINK THE INTEREST RATES ARE GOING TO GO UP. THEY DON'T SO EVENTUALLY IT'S GONNA BE I'M GONNA BE RIGHT ONE YEAR, THOUGH, BUT. I WILL TALK ABOUT THE FACT THAT OUR INTEREST, INCOME AND WAY TALK ABOUT REVENUE HAS GONE DOWN SIGNIFICANTLY SINCE FISCAL YOU'RE 18 EVEN ON INTEREST RATES WERE WERE ROCK BOTTOM THEN SO WE CONTINUE TO.

MUNICIPAL GOVERNMENTS. ONCE UPON A TIME, I COULD RELY ON INTEREST INCOME TO HELP THEM SUPPLEMENT THEIR THEIR GENERAL FUND, BUT THAT THOSE DAYS ARE COMING TO AN END, SO I'LL TALK A LITTLE BIT ABOUT INTERESTING. COME ALONG, I MIGHT ADD. MR HOLLOWAY PREDICTS INTEREST RATES INCREASING. I'M REMINDED OF THE ADAGE. EVEN A BROKEN CLOCK IS RIGHT TWICE A DAY. YOU CALLED ME WET, BELIEVES. THESE ARE ESTIMATES FOR END OF YOUR FUND BALANCES FOR OUR MAJOR FUNDS AND MAKE FUN CATEGORIES. PLEASE NOTE THAT WERE VERY STILL THE PANDEMIC. WE'RE IN A VERY STRONG POSITION ARE DRUNK ON WATER UTILITIES. THESE TWO BALANCES IN PARTICULAR HELPING TO DRIVE ARE EXCELLENT CREDIT RATINGS AND GIVE US FLEXIBILITY IS WE CONTINUE, WROTE UM SO.

JUST WAY ALWAYS LIKE TO PUT THIS LOT OF COUNTRY WHERE WE STAND GENERAL FUND VERY HAPPY WITH WHERE IT IS 25% REQUIRED WAY TRY TO STAY ABOVE 33% WITH OUR GIRLS WE'VE TALKED ABOUT WITH OUR MODERATORS. I TRY TO KEEP IT UNDER 40% BUT ANYWHERE BETWEEN 33 40 IS ABOUT WHAT WE'VE BEEN TRYING TO KEEP IT ESPECIALLY IS A CZAR REVENUES ARTISTS AS ROBUST, POSSIBLY.

OUR GENERAL FUNK TINGED, BRO. WE WILL BE MAINTAINING OUR REVOLUTION AND WE'LL PROBABLY BE ADDING AS MUCH ONTO OUR OUR SURPLUSES ARE NOW OUR FUND BALANCES AS WE GO FORWARD. KIND OF MAINTAIN THAT NICE RATIO. CHIPPER. COMPONENT UNITS. COMPONENT. USE THOSE WOULD BE OUR ARE MAYBE C C C C G B. THAT'S A GOOD QUESTION. LOOKS LIKE THAT IS A FORMATTING ISSUE.

UH THOSE COME IN FROM A DIFFERENT LOOKS LIKE A HUGE NUMBER OF ANY. I WILL WEIGH WILL UPDATE THAT FOR PRESENTATION PURPOSES, BUT THANKS FOR THE CATCH THEIR'S, BUT THAT DOES LOOK LIKE A JOB. SO. THE WATER USED TO SAY THAT THESE. HE'S A REALLY NICE THESE AIR NICE, ROBUST BECAUSE. AND THE RATING SYSTEM RATING DEPARTMENTS ARE COS I LOVE TO SEE THESE KIND OF THINGS BECAUSE THEY FEEL LIKE IT. MORE SOLID RATING. WASTE $40 MILLION JUST CONTINUES TO GROW. WE'RE NOT USING THAT ALL. WE ACTUALLY ARE STARTING TO TRY TO USE SOME OF THOSE IN OUR CAPITAL PROJECTS. IN IN FACT, I BELIEVE WAY. TALKED ABOUT WITHDRAWAL ONCE, BUT. WE TRIED TO USE SOME CASH FOR SOME OF THESE. SOME OF THESE PROJECTS STATION LESS

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THEN IN SOLID WASTE IS. ROBUST IS WELL, IT IS WAY HAVE TALKED ABOUT THAT ONE IN THE PAST.

THAT ONE HAS GROWN SINCE 2006 WAY HAVE NOT HEADING RATE INCREASES. TEO TO OUR CUSTOMERS, AND IN FACT, OUR RATES ARE PROPHETIC LOADED CUSTOMERS. IT'S JUST OVER TIME WE'VE HAD.

A LOT OF GROWTH THAT HAS BUILT OVER TIME, AND WE'VE BEEN ABLE TO ACTUALLY USE THAT FOR CAPITAL PROJECTS. NOW WE ARE LOOKING AT OUR NEW SOLID WASTE CONTRACTS IN NEW WAYS OF RECYCLING. SO I'M FEELING THAT YOU'RE NOT GOING TO BE SEEING THOSE FUND BALANCES THROAT ON SOLID WASTE. IN THE FUTURE AS MUCH OR AT ALL, AND I THINK THAT WILL BE POSSIBLY USING SOME OF THAT, TOO. OFFSET WHAT YOU'RE SEEING IN THE NEW CONTRACT. I WILL ADD THAT JUST A LITTLE BIT. I KNOW MR. HILTON IS WORKING WITH OUR SOUTH WASTE PROVIDER. NEGOTIATING A REVISED CONTRACT. OUR RATES WILL PROBABLY GO UP. ONE SOLID WASTE, SO THAT'S WHAT MARK WAS ALLUDING TO WHEN HE SAID, YOU PROBABLY SEE THAT RESERVE GROW BY A MUCH HIGHER RATE. IN ADDITION, WE'VE TALKED ABOUT THIS BEFORE R R WASTE. PROGRAM IN GENERAL, NOT JUST THE SOLID WAYS BUT OUR RECITAL. PROGRAMAS WELL IS IN NEED OF A NUMPTY A SIGNIFICANT UPGRADE, AND THAT'S PROBABLY REQUIRE US TO INVEST THERE. YOU SOME OF THESE FUN BALANCE, TOO. IMPROVE OUR PROGRAMME. WE HAVE FUNNY IN HIS BUDGET FOR A SOLID WAY. STUDY TO HELP US DEVELOPING BETTER RECYCLING STRATEGY ARE RECYCLING PROGRAM IS IN MY VIEW IS WAY UNDERUTILIZED. YOU DON'T DO GOOD ENOUGH JOB. IT'S NOT A CRITICISM OF A STAFF. IT'S FRANKLY WE JUST DON'T HAVE ENOUGH. WE DON'T HAVE ENOUGH RESOURCE IS ON EDUCATING THE PUBLIC ON RECYCLE. SO WE'RE GONNA GET INTO THAT THIS NEXT YEAR, BUT OUR DIVERSION RATE WHICH IS YOUR GENERAL BENCHMARK FOR HOW MUCH OF YOUR WAIST YOUR SOLID WASTE IS DIVERTED TO RECYCLING AS OPPOSED TO A LANDFILL RIGHT? ONE OF THE OBJECTIVE IS TO DIFFER. MUCH WASTE IS POSSIBLE FROM LANDFILL. WELL, OUR DIVERSION RATES ACTUALLY FREE WAY NEED TO GET THAT NUMBER UP. BETTER STRATEGIES FOR DOING AND THAT'S GONNA TAKE RESOURCE IS FOR US TO DO IT. SO WHILE OUR SOLID WASTE FUN IS A ROBUST NUMBER NOW, SOME OF THAT WE'RE GONNA COME BACK TO THE COUNCIL ASKED ASK THE COUNCIL TO APPROVE SOME SPENDING ALL THAT MONEY. AND IT'S FLYING. BUT I DON'T WANT IS JUSTICE CONTINUALLY GROW. I HAVE THESE BALANCES JUST BALANCES MUST UTILIZE MONEY PROJECTS GOING, UNDERSTAND? SOME OF THIS IS GONNA BE USED PROBABLY STABILIZE THE RATES.

WE GET RATE INCREASES. WE COULD USE SOME OF THIS TO HELP STABILIZE THE RATES. IN OTHER WORDS, STATE WHAT I MEAN BY STABILIZERS TO MITIGATE THE IMPACT OF THE RATEPAYERS. OVER A PERIOD OF TIME. WE DON'T WANT TO DO THAT FOR TWO ARMS, BUT THAT PROBABLY DRAW SOME OF THAT DOWN AS WELL. JUST ONE COMMENT QUESTION. NOW IT'S RAINING. WE TALKED ABOUT THIS FOR A COUNCIL.

JUST FROM A PERSPECTIVE STANDPOINT, THE TWO NUMBERS AND SERVICE LARKS ALWAYS ADVANCES LIKE CENTERING PERCENT, SO. ENTIRE PAGE. IT'S NOT NEAR AS MUCH. JUST QUESTIONS. TALK ABOUT DIVERSION. YOU SURE ABOUT THAT? I OFFER THEM THAT CONCEPT. I DON'T KNOW THE NUMBER. I THINK WE'RE AROUND 20. THE BENCHMARK IS OVER 30. YOU TYPICALLY WANT TO BE OVER 30% IN THE INDUSTRY. MUNICIPAL DIVERSION RATES THAT'S KIND OF BEST PRACTICES OR BENCHMARK RATES AND WERE BELOW THAT. NOTHING ACTUALLY. THE GOOD NEWS FOR ME IS I GET TO STEP BACK NOW. WE'LL LET TERMINATOR TAKE US THROUGH THE NEXT FEW SLIDES TALK ABOUT OUR PROPERTY TAXES, WHO'S THERE, AND HE'S GONNA TALK ABOUT OUR VALUES AND OUR VALUE HISTORY. SO THANK YOU FOR HELPING OUT SHOULD APPRECIATE. MR HOLLOWAY. I'LL LET YOU FLIPPED FOR IT. IF YOU DON'T MIND, MR BERRY REMEMBERS THE COUNCIL WAS, MARK SAID. I'LL TOUCH BASE ON THE PROPERTY TAX RATE ITSELF A LITTLE BIT OF HISTORY ON EVALUATIONS. WE'LL TALK ABOUT THE MAKEUP OF THE TAX RATE, AND THEN WE'LL TOUCH VERY BRIEFLY ON OUR EMPLOYEE POPULATION OF WHAT THAT LOOKS LIKE. CONSIDERATION ARE SISTER CITIES. SO IT'S LIKE YOU SEE RIGHT THERE BETWEEN TAXABLE

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WHAT DO WE KNOW WHAT THE EFFECTIVE RIGHT IS? THE EFFECTIVE TAX RATE. WE'RE GONNA HAVE A WHOLE SLIDE PROTECTORATE ABOUT THREE SLIDES BEAR WITH ME. ON MULTI FAMILY, YOU'LL GO

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THAT PROBABLY IS ACCURATE BECAUSE YOU HAD THE YEAR BEFORE YOU GOT ABOUT A $1,000,000,000 WORTH OF MULTIPLE FAMILY ON THE GROUND, AND THEN BETWEEN US, WE'RE YOUR 17 THIS. WE'RE 18.

THAT INCREASED TO ABOUT LOOKS LIKE JUST UNDER 1.5 DAYS THAT PROBABLY. THAT YOU'RE OVER YOUR GROWTH PROBABLY WAS 47.4% JUST IS A TOTAL AMOUNT OF THE VALUES ON ROLL THAT PARTICULAR ONE GROUP. PROBABLY ABOUT THAT MUCH THAT DOES LOOK LIKE THAT WAS PROBABLY. NEWS OF SEE. THAT'S BEEN DONE. LAST YEARS HAVE BEEN MIXED USE WITH RETAIL AND OTHER COMPONENTS THAT WOULD TAKE IT CONCERNS THE WHOLE PROJECT. WORDS, IT'S SEGMENTS. SO, FOR INSTANCE, THE RETAIL COMPONENT OF A MULTI FAMILY UNIT IS COUNTED HIS COMMERCIAL VALUE. HOWEVER THE VALUE OF THAT MULTI FAMILY ITSELF IS INCREASED. IF IT'S A. URBAN STYLE RESIDENTIAL. THERE IS A HIGHER RELATIVE VALUE GETTING GARDENS DOWN, MULTI FAMILY. SO WHILE THE COMMERCIALS SEPARATED OUT VALUE OF THAT RESIDENTIAL IS HIGHER. I'M CURIOUS HOW THEY GET SEPARATED BECAUSE, OF COURSE, ISN'T OWNER MAKES YOU STOP. A SINGLE TAX BILL BASED ON THAT PROPERTY THAT ADDRESS AND I DON'T HAVE ANYTHING THAT'S BROKEN OUT FOR ALL THE RETAIL IT'S UNDERNEATH. SO, MY HAVEN'T WE BRING THAT DOWN? IT'S NOT BROKEN, YOU KNOW? YOU KNOW, GET SIMPLE SQUARE, FOR EXAMPLE. WE GOT A WHOLE BUNCH OF YOU GET A SEPARATE TAXI. GO FOR THAT. GET JUST OBVIOUSLY FOR THE PHYSICAL ADDRESSES. ONE OWNER SORRY. POSSIBLY DO THAT. WE PROVIDE AN EXAMPLE WOULD GO BACK TO RESEARCH WILL BE HAPPY TO SPECIFICALLY THIS PROBLEM. YOU COULD SHOW US. WE WILL TALK TO THE ASSUMPTION WOULD BE THAT WOULD JUST JUST BECAUSE I KNOW I HAVE SOME PERSONAL EXPERIENCE. I DON'T SEE IT THAT WAY. ACTUALLY IS. RESIDENTS WITH CHINA IS NOT ARE OUR DIRECTION. WE HAVE TO TAKE A LOOK AT IT GETS A MANSION. IN DISCUSSING PARTIAL AGAIN GOOD NEWS ON THE COMMERCIAL VALUATION SIDE. WE'VE SEEN A STEADY INCREASE DOUBLE DIGIT INCREASES YOUR YOUR COMMERCIAL VALUE GROWTH OF PRIMARILY DUE TO THE ACTIVITY THAT YOU SEE ON THE THREE AGE CORRIDOR BETWEEN HARDEN LIKE FOREST IN THOSE AREAS. THERE'S ALSO A NEW COMMERCIAL THAT'S HAPPENING THROUGHOUT 1 21 SO THOSE VALUES ARE STARTING ON THE ROLLS. AND AS WE MENTIONED THE VERY BEGINNING EVALUATION DISCUSSION, STARTING TO IMPACT THE PERCENTAGE MIX OF COMMERCIAL VERSUS OTHER USES ON THE APPRAISED VALUE TOTALS.

TEO, COME IN, NORMALIZE THAT RESIDENTIAL VERSUS COMMERCIAL MIX. AND THEN FINALLY ON VALUATIONS WHEN EVERYTHING ELSE IS GROWING, THE LAND VALUE STARTS TO GO DOWN TO AN EXTENT.

THAT DOESN'T MEAN THAT LAND IS CHEAPER TO BUY A CZ SOME. NO, IT JUST MEANS THAT THERE'S LESS OF IT AVAILABLE. I WENT IN THERE WHEN IT'S LESS WHEN THERE'S LESS AVAILABILITY. YES THE PRICE DOES GO UP TWO STUDENTS APPLYING MAN. HOWEVER, THE AGGREGATE LAND VALUE COMES DOWN JUST BECAUSE IT'S NOT AS EASILY ACCESSIBLE SO WHEN WE SEE LARGE INCREASES A MULTI FAMILY RESIDENTIAL COMMERCIAL, IT IS NORMAL TO SEE YOU DID IN THE LAND VALUATION GO DOWN. OF THIS WELL SOMEWHAT NORMALIZE, AS THERE'S LESS AND LESS LAND AVAILABLE BECAUSE PRICING WILL GO UP. YOU EVER THINK? THINK SOMETHING STILL. 18 JUST IT SAYS, MY GUESS ABOUT 1.75 BILLION. IN 1.55 BILLION. BY THOSE TWO. WE WILL. WE'LL TAKE A LOOK AT THE SLIDE TO MAKE

[00:45:18]

CORRESPONDING TO THE VALUATIONS. I'LL EMPHASIZE AGAIN. THIS IS THE NO NEW REVENUE RAIN, WHICH IS THE NEW VERNACULAR THAT WE'RE USING IN RESPONSE TO SENATE BILL TO FROM THE MOST RIGID RECENT LEGISLATIVE SESSION. WHAT WAS AFFECTIONATELY KNOWN AS THE EFFECTIVE RATE IN PREVIOUS YEARS, WHICH YOU SEE TO THE RIGHT. WE STARTED PROVIDING THE SLIDE. YOU ALWAYS A LITTLE BIT OF YOU. HOW THIS CORRELATION OF NO NO REVENUE TOTAL TAX RATE WE COULD CHARGE AND THAT THE VOTER APPROVAL RATE ALL MINGLED. A LITTLE WHILE AGO, THE LEGISLATURE TO VOTER APPROVAL RATE FROM 8% 3.5% YOU SEE THAT IMPACT BETWEEN FISCAL YOU'RE 20 AND I'M 21 WHERE THAT AQUA BLUE OR LIGHT BLUE LINE HAS COME DOWN. AND THE DELTA BETWEEN THE RED LINE ON THE BLUE LINE IS COMPRESSED AS IT WAS IN PREVIOUS YEARS. ALL THAT SAID, SNAPS RECOMMENDING NO NEW REVENUE RATE, WHICH IS IN PREVIOUS YEARS. REFERRED TO IS THE EFFECTIVE RANGE. SO BEFORE WE GET INTO THAT KIND OF LOOK THE STAFFING NUMBERS WHEN IT SUMMARIZED THE PROPERTY TAX RATE ITSELF. EARLIER AND MR HOLLOWAY'S COMMENTS AND MR GRIMES COMMENTS. WE TALKED A LITTLE BIT ABOUT DEBT CAPACITY AS WELL AS OUR OPERATING CAPACITY. THIS IS THE MIX BETWEEN R S ARE INTERESTING, SEEING GREAT AND ARE NOOR MAINTENANCE AND OPERATIONS. WE TALKED A LITTLE BIT OF OUR 10 YEAR PLAN. YOU'LL SEE THAT THE TAX RATE DOES COME DOWN. HOWEVER, WE HAVE MAINTAINED THE ABILITY TO ISSUE DEAD ON THE SIDE OF THE DEBT RATE SIDE. FOR PROJECTS THAT ARE COMING DOWN THE PIPELINE, WHETHER THE AND RESPONSE TO $350 MILLION ON PACKAGE OR OF OTHER NEEDS THAT MAY COME IN FUTURE YEARS. AT THE SAME TIME, THE MAINTENANCE AND OPERATION RATE IS SET UP TO COMPLIMENT. THE DEBT PLAN FOR THE NEXT 10 YEARS. SO THOSE WORK HAND IN HAND? SO I SAY ALL THAT TO SAY THE RATE WE'RE RECOMMENDING TO COUNCIL IS WITH THE UNDERSTANDING THAT WE CAN STILL ACCOMPLISH THOSE 10 YEAR PLANS THAT WE DISCUSSED EARLIER. REALLY THE LAST LIGHT ON TAXING OF THESE WERE BASED ON RAW TOTAL, SO YOU'LL SEE A LITTLE BIT OF A VARIATION OCCURRED ON THE AVERAGE HOME VALUE AS WEEKS GO FORWARD HERE BETWEEN NOW AND THE ADOPTION TAX RATE. THAT SAID YOU GOT ABOUT $500 DELTA SO THAT'LL SWING A LITTLE BIT AS WE GET TO THE TAX RATE ADOPTION. THAT'S THE AVERAGE VALUE DUE TO THE TAX RATE DECREASING AND DUTY EVALUATIONS LEVELING OFF ON EXISTING PROPERTIES WERE. ESTIMATING THAT THE AVERAGE TAX LEVY WILL DIP SOMEWHAT FOR THE AVERAGE HOMEBUYER. EXCUSE ME, THE AVERAGE RESIDENTIAL TAXPAYER. THIS'LL BE THE FINAL TWO SLIDES TO T. OF OUR DISCUSSION OF THE REVENUE AND EXPENDITURES IN THE GENERAL FUND THAT MR HOLLOWAY WILL TAKE OVER HERE IN A COUPLE OF SLIDES. WE STARTED SHOWING. A COMPRESSED SLIDE A COUPLE YEARS BACK TO GIVE THE COUNCIL OF VIEW OF OUR STAFFING LEVELS IN CONSIDERATION OF TOTAL, NOT CITIZENS THAT ARE IN THE CITY OF MCKINNEY. SO WE USED THE SLIDE A COUPLE TIMES OVER THE PAST FEW YEARS TO SHOW THAT WE'RE MAKING SOME PROGRESS AS THE RATES ARE GOING DOWN. EXCUSE ME AS HIRING IS GOING UP. MR. HOLLOWAY ALSO MENTIONED

[00:50:04]

SO OFFICIALLY 21. WE'RE GOING TO USE THE LAST NUMBER THAT WE HAVE. WHICH IS PHYSICALLY YOU'RE 19. AND WE HAVE IT BUMPED UP ABOUT 3% OF THAT IS FAIRLY CONSERVATIVE. IT'S A NUMBER THAT WE CAN ADJUST AS WE GO FORWARD IN THE YEAR. ESPECIALLY DON'T WANT TALK A LITTLE BIT WHEN WE GET TO THE EXPENDITURES WHEN WE START TO TALK ABOUT REMOVING OUR HIRING FREEZE AND BEGINNING TO HIRE PEOPLE. ONCE IF THESE SALES TAX NUMBERS REALLY HOLD UP, THEN WE CAN START TO DO THOSE THINGS ARE THOSE PEOPLE AND YOU ARE HIRING FREEZE? AND THEN POSSIBLY DO SOME SOME OTHER THINGS. YOU'RE 21. BUT FOR NOW TO BE SAFE, THAT'S WHERE I HAVE THE BUDGET PLACE. OUR BUILDING PERMITS ARE DOWN THERE DOWN ABOUT $1.5 MILLION FROM FISCAL YEAR 18 LEVELS. THIS WAY. YOU'RE 1920 ARE COMING IN AT ABOUT 6.6 MILLION. SO WE BUDGETED WAY THOUGHT THAT FISCAL YEAR 20 WE WERE GOING TO SEE THAT CULTURED $8 MILLION RANGE. WE DIDN'T SEE THAT SO WE'RE BACKING OUR BUDGET DOWN TO WHERE OUR ACTION EXPERIENCES.

THAT'S WHAT WE HAVE TO DO WITH BUILDING PERMITS. WE COULD SEE ANOTHER ANOTHER MOON WITH BUILDING PERMITS, BUT. RIGHT NOW. IT SEEMS TO HAVE TRENDED BACK DOWN ABOUT THIS $1.5 MILLION. THAT IS DIRECT LOSS FROM GENERAL FUND TRAFFIC FINDS ITS VERY SMALL CATEGORY, BUT IT'S DOWN TO ABOUT $200,000 LESS THAN OUR OFFICE 20 ESTIMATE. UM, IT'S TRENDING ABOUT WHERE WE WERE JUST WE WERE 19. SO WE'RE GOING TO BUDGET THAT BACK DOWN TO ABOUT $200 DOLLARS. OUR INTEREST IN COMES DOWN. IT'S I'M TALKING ABOUT THIS WITH YOUR 18 AGAIN THAT IT CAN'T GO ON IN 19 AND 20 A LITTLE BIT, BUT IT'S DOWN ABOUT $1.8 MILLION FROM WHERE WE WERE. THIS WEEK WRITING. FRENCH HOUSE PEACE WITH SENATE BILL 11 52 WE'VE LOST ALMOST A $1,000,000 DIRECTLY WITH GENERAL FUND FROM CHARTER AND T SO WAY ARE SEEING SOME SIGNIFICANT HEAVEN'S ON ON THESE THESE REVENUES. A GOOD QUESTION SHOW BASED ON MERE ATTEMPTS, A FAVORITE BOND SUBJECT IS PART OF THE AWESOME INTERESTING JUST BECAUSE WE'RE

[00:55:02]

LIKE THE ONES WE ISSUE. WISHBONES THIS YEAR. YES, WE JUST GOT FINISHED LAST WEEK. UH TOTAL INTEREST COSTS OVER. OVER THE 20 YEAR LIFE WAS 1.7. SO. THAT WAS OUR TOTAL INTEREST OVER THE REALLY, YES, VERY LOW BORROWING RATES. SO YOU KNOW THE REFUND INGS THAT WE'RE DOING. WE DID. A RE FUNDING IS PART OF THIS. I KEEP SAYING, THIS WILL BE OUR LAST REFUND.

DON'T THINK INTEREST RATES WOULD GO DOWN ANY MORE ON SO YEAH. SO I'M WONDERING IF IN 2031 WE'RE GONNA WIN THOSE NOTES ARE GULLIBLE, IF INTEREST RATES CAN POSSIBLY BE ANY LOWER THAN 1.7% SO. IT'S THE INDUSTRY LOSING OR PROBABLY MORE FOR PROBABLY PAIN. CORRECT, BUT I DO LOSE IT ON THE OPERATING SIDE, SO IT'S IT IS IT'S BALANCING EXTRAPOLATION.

EARLIER. WE SHOWED YOU HELP COMPARE PERSONNEL LOST ARE SISTER CITIES THIS LIVELY SHOW EVERY YEAR COMPARISON OF OUR REVENUES PER CAPITA. UM, THESE ARE SISTER CITIES. FISCAL YOU'RE 20 ADOPTED BUDGETS COMPARED TO OUR 21 PROPOSED. WE DON'T HAVE THEIR BUDGET PROPOSALS OF THIS POINT. BUT I DO THINK THAT THE CANNED IMAGE WILL AFFECT SOME OF OUR SISTER CITIES DIFFERENTLY THAN THIS. AND I THINK THAT THESE NUMBERS MAY LOOK DIFFERENT WHEN WE LOOK AT HIM NEXT YEAR. I THINK FOR THE FIRST TIME YOU WILL SEE SOME OF THOSE POSSIBLY SHRINK IN OUR STATE. SAME SO SOME OF OUR SISTER CITIES HAVE BEEN EFFECTIVE. A LITTLE MORE ON THE SALES TAX ON THEN WE HAVE. SO I THINK THAT YOU MIGHT SEE THOSE REVENUES SHRINK ON WHEN WE TAKE A LOOK AT REALLY IN THIS ONE. IT'S BETTER. FAIR ONE SMALLER, CORRECT? YES, SIR BRECK. BUT THIS IS NOT CORRECT. AND YOU'LL SEE THAT OUR WILL BALANCE IN THERE TOO. BUT. LIKE I SAID, THERE'S A GOOD SHRINK THIS YEAR WHILE I WROTE INCREMENTALLY, VERY SMALL MOUTH, BUT I KNOW THAT PLANO AND FRISCO ESPECIALLY HAVE SEEN HIM. SOME STRONG DECLINES AND SALES TAX COMMERCIAL THAT THEY CORRECT SO. AND THAT'S THAT'S REALLY THE DIFFERENCE IN ALL THIS, AND YOU'LL SEE THAT ACTUALLY WHEN WE. WE'LL DO A COMPARISON SLIDE SHOW THE MAKE UP OF THEIR GENERAL FUND, WHERE THEY RECEIVE THEIR REVENUE FROM AND YOU'LL SEE THAT OURS IS OUR PROPERTY TAXES IN A FEW MINUTES, THEN THERE'S OUR SALES TAX. THIS IS JUST THE MAKEUP OF OUR TOTAL REVENUE OVER 10 YEARS WAY SHOW IT IN COMPARISON TO OUR CAPITAL GROWTH DURING THE SAME PERIOD. WE HAVE ABOUT 1% INCREASE FROM FISCAL YEAR 21 TEO FISCAL. YOU'RE 20 ADOPTED.

AND IT'S ABOUT A 2% INCREASE OVER FISCAL YEAR 20 YEAR IN SO WE, ACTUALLY BECAUSE OF THE PANDEMIC, ITS PUBLIC THE FIRST TIME REDUCED OUR END OF YOUR REVENUE ESTIMATES BELOW. WHAT ARE. WE'VE BEEN FAIRLY CONSERVATIVE, AND USUALLY WE'VE GROWN A LITTLE BIT MORE THAN WE THOUGHT WE WOULD. BUT THIS IS THE FIRST YEAR THAT WE'VE SAID THAT I MAY END UP BEING A LITTLE BIT LOWER. OUR SALES TAX PROJECTION IN THIS INTO YOUR ESTIMATE, STILL FAIRLY LOW.

WE'VE SEEN DIFFERENT EXPERIENCE LIKE WE TALKED ABOUT. WE'VE SEEN GROWTH AND I'LL TALK ABOUT SALES TAX. A FEW SLIDES, BUT WE'VE WE'VE LEFT THE NUMBER ALONE AT THIS POINT, JUST TO TRY TO MAKE SURE THAT WAY. STAY BALANCED IN CASE YOUR 20 SEASONS, A DECREASE MOVING FORWARD, WHICH THIS POINT, PROBABLY NOT. WE'LL SEE. THIS IS OUR COMPARISON OF OUR REVENUES. MRS R. R 20 ADOPTED TWO ARE 20 PROPOSED. YOU SEE THE DECREASE IN OUR OTHER REVENUE SOURCES COULD PUSH OUR PROPERTY TAXES UP PERCENTAGE UP A LITTLE BIT. HOPEFULLY OUR SALES TAX WILL CONTINUE TO GROW AND THESE NUMBERS WILL SWING BACK TOO. CELLS USE TAXES BEING HIGHER PROPERTY. TEXAS BEING LOWER IS PART OF THE OVERALL BUDGET WAY HAD BEEN DRINKING

[01:00:05]

TALKING ABOUT THIS IS THE COMPARISON TO OUR SISTER CITIES. AND HOW WE LOOK ON ON PROPERTY TAXES AND REVENUES. SOURCES COMPARED THEM TO SEE FRISCO ALAN, AROUND 50% PROPERTY TEXTS RELIED, BUT, UH, YOU KNOW, FIRST GO AT 26% OF THEIR GENERAL FUND BUDGET COMING FROM SALES TAXES. OURS IS 50% PROPERTY TAX, 17% SALES TAX, PLANO, EVEN MOHR.

DIVERGENT 47% RELYING ON PROPERTY TAXES OR IS THEIR FISCAL YEAR 20 BUDGET. BUT YOU CAN SEE THAT THAT THAT THAT'S WHERE WE WERE HEADED, BUT WITH THE PANDEMIC IN US TRYING TO BE MORE CONSERVATIVE ON SALES TAX ESTIMATE. IT'S PUSHING US BACK TOWARDS THAT 55. AND ONCE AGAIN, I THINK YOU WILL SEE THEIR NUMBERS BE VERY DIFFERENT ARE NOT VERY DIFFERENT, BUT SOMEWHAT DIFFERENT WHEN WE SHOW YOU THIS LOT AGAIN NEXT YEAR. ONCE AGAIN. THIS IS PROPERTY TAX OVER THE PAST 10 YEARS, YOU CAN SEE IT'S BROKE COMPARED TO OUR CAPITAL. IT'S LEVELED OFF THE LAST FEW YEARS THAT IS DUE TO US MOVING CULTURE TO THE EFFECTIVE OR NO REVENUE RATE EACH YEAR, AND INSTEAD WE FIND YOU. HAVE LEVELED OFF COMPLETELY THIS YEAR WITH THE PROPOSED NO NEW REVENUE, RIGHT? THIS IS THE IMMUNO PORTION OF THE TAX RATE ONLY BECAUSE WE'RE TALKING ABOUT GERMS FROM THIS POINT. THESE ARE SALES TAX REVENUE PROJECTIONS AND COLLECTIONS AND PROJECTIONS. WE'VE TALKED ABOUT THE LAST FEW YEARS ABOUT A FOUR PART PART MODELS THAT WE USED TO TRY TO USE TO DETERMINE OUR SALES TAX. ALL REFERS TO IT IS THE HOLIDAY HOLLOWAY INDEX THIS YEAR. WAY THREW IT OUT THE WINDOW. WAIT WERE WE DID NOT INDEX THIS YEAR, IT WOULD HAVE THROWN OUR PROJECTIONS WAY WAY UP IN. I HAVEN'T FELT LIKE THAT WASN'T GOING TO DO IT. THIS YEAR. AS I MENTIONED, WE'RE APPLYING 3% MULTIPLY OUR TO OUR END OF YOUR FISCAL YEAR. 19 ACTIONS. ONCE AGAIN. OUR EXPERIENCE FOR 20 IS TRENDING AGAINST THAT NORMAL FLOW OF THE ECONOMIES, BUT WE'RE SO EXCITED TO BE VERY CAUTIOUS. AND AS A NO. WHENEVER OUR PROJECTIONS ARE FOR. GENERAL FUND SALES TAX IT MIRACLE MIRROR WITH ABC AND CDC THEY WOULD RECEIVE. YOU KNOW, HALF AGAIN HALF OF THIS WHAT WE PUT IN THEIR PROJECTIONS FOR THEIR BUDGETS AS WELL. SO THEY'RE BEING VERY CONSERVATIVE THIS YEAR WITH THEIR PROJECTIONS. DOWNSIDE. YOU'RE CONSERVATIVE PROJECTIONS THAT WE END UP WITH MORE MONEY.

CORRECT IF WERE WE'RE TRYING TO PREPARE FOR IF WE DO TREND DOWN, AND I'M GONNA TALK A LITTLE BIT ABOUT YOUR EXPENSE PORTION WE ARE PREPARED TO THEIR CERTAIN LEVERAGE. GOVERNORS THAT WE PUT ON THIS BUDGET WITH OUR HIRING FREEZE, AND THEN WITH THE NEW POSITIONS THAT COULD POSSIBLY BE APPROVED, WE WOULDN'T LOOK HIRING THOSE TILL JANUARY 1ST. SO IF YOUR SALES TAX EVEN COMES BACK FURTHER THERE OR OUR REVENUES COME BACK FURTHER. THERE ARE OTHER THINGS THAT WE CAN DO. BUT YES. THIS WOULD GIVE YOU THE LEVERAGE IN JANUARY, FEBRUARY MARCH NEXT YEAR IF OUR SALES TAXES STRONG, THERE'S EQUIPMENT THAT WE NEEDED. THERE IS A PROJECT THAT WE NEED. I WOULD SUGGEST TAKING THAT THAT MONEY, THEN USING IT IN THE SPRING, T HANDLE SOME OF THOSE THIS. THIS ALLOWS US TO BE VERY CAUTIOUS, BUT THEY GIVE YOU THE FLEXIBILITY. MONEY LATER ON, HOPEFULLY I AM WRONG ON THIS, BUT. WEI HAVE TRIED TO GET AWAY FROM THAT TYPE OF BUDGETING THE BUDGET SALES TAX DOWN WE HAVE GOT AWAY FROM IT AND OTHER FISCAL YEARS. WE THINK THAT THIS IS THE YEAR TO GO BACK TO THE MODEL OF. LET'S SEE WHERE WE ARE IN JANUARY FEBRUARY IF THE ECONOMY ISN'T STRONG, THAT'S THE WAIT AND SEE APPROACH THAT I REFERRED TO MY REMARKS. I JUST WANT TO ADD A LITTLE BIT ON SALES TAX IN THE RATIONALE BEHIND BEING CONSERVATIVE AND AGAIN 3% NUMBER OVERNIGHT. THAT IS, YOU KNOW, IN PREVIOUS YEARS BUDGETED ALMOST ZERO. WE JUST WAITED AND PUT LEFT HIM FUN BOUND, SO WE DID INCREASE IT.

SEE THIS LAST YEAR IS SOMEWHAT UNIQUE WAY DON'T THINKYOU COULD ANTICIPATE 10 OR 12 DOUBLE

[01:05:01]

THAT CHANGE IN BEHAVIOR PEOPLE BUYING MORE ONLINE AND THROUGH BIG BOXES. BIG BOX PURCHASES, SO THE HOME DEPOTS AND THE LOWS AND THE COST GOES, ARE DOING VERY, VERY WELL. DURING THIS PENDANT. OTHERS ARE STRUGGLING AS WE KNOW. BUT THAT'S ENDURED TO OUR BENEFIT, BUT WE CAN'T EXPECT IT'S GOING TO DOUBLE DIGIT GROWTH NEXT YEAR, RIGHT? WE'VE REALIZED THAT SUPER CHARGE BUT I DON'T KNOW HOW LONG THAT'S GONNA LAST. IN FACT, I THINK THERE ARE SOME SIGNS THAT I SUGGEST THAT IF THE ECONOMIC DOWNTURN CONTINUES. THAT SOME OF THAT IS SOMEWHAT.

FORK GROWTH IN SALES TAX MIGHT BE PULLED BACK, SO WE ARE TRYING TO BE A LITTLE WOMAN SERVED WITHOUT BEING OVER. THAT MAKES SENSE. AND THEN WE HAVE ON THE EXPENDITURE SIDE, THE LEVERS AND KNOBS TO BE ABLE TO ADJUST. AS WELL. ADDRESS. WE'LL REPLACE THE HOLLOWAY MIXED WITH.

THIS IS A CHART. WE'VE SHOWN YOU EVERY YEAR TO KIND OF SHOW YOU HOW OUR SALES TAX AS ROAD FOR CAPITAL OVER THE LAST 10 YEARS, AND NOW OUR PROPERTY TEX HAS. HAS BEEN FOR CAPITAL. THEY BOTH BEEN FAIRLY STABLE AND. AND CONTINUED, ESPECIALLY SINCE THE LAST FEW YEARS. ONCE WE'VE.

BEND UP, ADOPTING CLOSER AND CLOSER TO THE EFFECTIVE TAX RATE OF THE REVENUE AGENCY PROTECT CAPITAL PROPERTY TEXT BROKE HAS SLOWED CONSIDERABLY. SO THESE THESE SLIDES WE'VE BEEN TALKING ABOUT SINCE MARCH. PROBABLY WHEN I TALK TO YOU, MEI. WE'VE BEEN MOVING OUR PROJECTIONS. YOU CAN SEE WHERE PHYSICALLY YOU'RE 19 YEARS PERSONAL. YOU'RE 20. WHAT ARE WORST CASE SCENARIO? WE'RE NOT. IT'S NOT EVEN A WORST CASE SCENARIO ANYMORE. WE THINK THAT WE'RE WITH SALES TAX COLLECTIONS. IF THEY CONTINUE THE WAY THEY ARE, WE WILL OUTPACE WHAT WE HAVE FOR FISCAL YEAR 20 BUDGET. THEY'RE EVEN WHAT WE CALLED THE CHINA MODEL, WHICH HAS MOVED INTO MORE OF A INTERNATIONAL MODEL. WE'RE SEEING EVEN EVEN STRONGER RETURNS ON SALES TAX. NOW WE SAID, WE'RE NOT SURE THAT IT IS. SUSTAINABLE THIS POINT AND WE ARE WE ARE CONCERNED ABOUT IT. BUT IF WE IF WE CONTINUE TO BUDGET LOWER THIS YEAR ON SALES TAXES WOULD GIVE YOU GUYS HAVE BEEN FLEXIBILITY WE'VE BEEN SPRING IF THE NUMBERS WE'RE MAKING. THIS IS THE SLIDE. I'VE ALSO BEEN SHOWN YOU EACH TIME WE GET A NEW SALES TAX POINT OF HOW LONG I'VE BEEN AND WHAT OUR WORST CASE ESTIMATES WERE, AND I SAID, I WAS HOPING THAT THESE NUMBERS WILL CONTINUE TO SHOW YOU THAT THE NUMBERS ARE TRENDING UP. YUP. AND. BECAUSE THE AND YOU CAN SEE THAT ARE FROM OUR ORIGINAL ESTIMATE WHEN THE PANDEMIC HIT, SIR. OKAY? YOU CAN SEE WHERE WE WERE IN MAY WITH WHAT WE THOUGHT THE SALES TAX WOULD DO WHEN WE THOUGHT WE WOULD SEE A 10% YOU'RE OVER YOUR DECREASED BY THE END AND YOU CAN SEE WHERE WE ARE TODAY IN JUNE, WE THINK THAT POSSIBLY YOU COULD SEE ALMOST IN A PERCENT INCREASE YEAR OVER YEAR. INSTEAD. SO THAT IS TERRIFIC NEWS OURSELVES. TAX HAS BEEN FAIRLY RESILIENT THROUGHOUT THIS ENTIRE PANDEMIC AND HOPE THAT WE CONTINUE TO SEE THAT. IS THAT YOUR SISTER? YES UNTIL THIS LAST MONTH, THIS 1ST JUNE COLLECTION IN AUGUST, SO THE TOP LINE THAT YOU SEE.

OURS WAS UP STILL DOUBLE DIGITS, BUT WE SAW PLANO IN FRISCO FOR THE FIRST TIME NOT HAVE NEGATIVE COLLECTIONS, BUT WERE UP EIGHT AND 9. SO. TAKE SOME OF THAT HAS TO DO WITH THE RE OPENING OF THE ECONOMY'S YOU'RE STARTING TO SEE PEOPLE GOING BACK INTO SOME OF THOSE RETAIL STORES AND POSSIBLY WHAT I TALKED ABOUT WITH THE REVERSE PANDEMIC EFFECT MIGHT SEE PEOPLE LEAVING SOME OF THE BIG BOX STORES ARE PICKING UP ON A LOT OF SHOPPING. ONLINE. GOING.

BACK IN SOME OF THESE RETAIL ESTABLISHMENTS. SO THAT'S GOOD NEWS FOR PLAYING ON FIRST GO

[01:10:01]

[01:15:09]

BEFORE WE BEGIN. MENTIONED ST RECONSTRUCTION REPAIR EARLIER. WE DO HAVE $1.5 MILLION IN THIS BUDGET FOR THAT PROGRAM TO CONTINUE. OUR PUBLIC SAFETY STEP INCREASES, OR ABOUT $1.4 MILLION THIS YEAR AND GENERAL FUND ONCE AGAIN DOES INCLUDE AT 1.5% COST OF LIVING ADJUSTMENT FOR GENERAL GOVERNMENT EMPLOYEES. STICK AROUND FOR THAT 1.5 MILLION IN STREET RECONSTRUCTION, AIR DANIELS DR THEY TALKED ABOUT FOR. YOU KNOW, I BELIEVE IT. DOES THAT MADE THAT FUNNY MAKE HIM OUR CAPITAL IMPROVEMENT PROGRAM, SO I NEED TO VERIFY WITH OUR ENGINEERING STAFF. BUT I KNOW DANIELS IS EXPECTED TO BE FUNDED THIS NEXT. TESTICULAR PROJECT WITH THIS NEXT FISCAL YEAR, ONE WAY OR THE OTHER EITHER FROM THIS OR CAPITAL FROM MONEY. I APPRECIATE IT. WE SHOWED THIS ON THE REVENUE SLOT A CZ WELL, BUT THIS IS OUR TOTAL HERO FUND EXPENDITURES. ONCE AGAIN, IT MIRRORS THE REVENUES. EXACTLY IT'S ABOUT 1% INCREASE FROM THIS. WE'RE 20. ADOPTED TO PHYSICALLY YOU'RE 21 PROPOSED. IT'S ABOUT. IT'S ABOUT 2% DIFFERENCE FROM OUR END OF YOUR ESTIMATES. SO. ONCE AGAIN SHOWING A BALANCE BUDGET, VERY HAPPY WITH THAT, BUT IT'S A VERY, VERY MODEST INCREASE TO OUR OVERALL BUDGET AS YOU CAN SEE COMPARED TO OTHER FISCAL YEARS. THIS IS THE GENERAL FUND EXPENSE MAKEUP. IT'S A FAIRLY FLAT BUDGET ON THERE ARE VERY FEW STRUCTURAL CHANGES SO THINGS REMAIN FAIRLY THE SAME BETWEEN HOW MUCH HAS BEEN MADE UP FROM 20 TO 15 OR 21. PUBLIC SAFETY IS JUST UNDER 50% OF OUR TOTAL BUDGET. GERMAN GOVERNMENT. WE'LL TALK A LITTLE BIT ABOUT THAT IS 22. PARKSON LIBRARY RUN 9% AND PUBLIC WORKS IN DEVELOPED SERVICES AROUND 8% WITH TRANSFERS. HELPS TO OTHER FUNDS ABOUT 7% IN 26% IN 21. JUST A QUICK NOTE. DASHBOARD SHOWED ALMOST THREE HOURS. I'LL TAKE A LOOK AT YOUR DASHBOARD, BUT IT SHOULD BE. JUST FOR ANYONE. MOST PEOPLE WOULD NOT UNDERSTAND TRANSFERS ARE JUST ABSOLUTELY ARE TRANSFERS WAY DO THINGS A LITTLE DIFFERENTLY THAN SOME OF OUR OTHER GOVERNMENT NOTICED ARE EXPENSIVE EXPENSES FROM THE SUMMER SISTER CITIES, THEY DO A LITTLE BIT LESS ON THE TRANSFER SITE. IT'S JUST STRUCTURALLY HOW WE DO THINGS. FOR INSTANCE, ALL OF OUR REPLACEMENT VEHICLES THAT WOULD PROBABLY COME OUT OF A DIFFERENT. DEPARTMENTAL FUNDS HERE. WE TRANSFER THOSE DOLLARS TO A FUND WHERE WE PURCHASED ALL OF OUR VEHICLES FROM. WE ALSO WILL BE TRANSFERRING, FOR INSTANCE, THAT $1.5 MILLION THAT I WAS TALKING ABOUT. SOME OTHER CITIES MIGHT GET FUND THAT OTHER CAPITAL IMPROVEMENT FUN. WE'RE GOING TO TAKE THAT CASH DIRECTLY OVER YOUR FUN AND IT IS A TRANSFER TO OUR CAPITAL IMPROVEMENT FUNDS TO DO THE STREET REPORT PLACEMENTS. WE ALSO SEND MONEY. YOU ARE RISKING INSURANCE FUND AND ALL THOSE ARE REFLECTED A LOT OF THOSE IN THE DEPARTMENTAL LEVELS. I'VE SEEN THAT IN OTHER GOVERNMENTS THAT ESPECIALLY ONE THAT I WORK FOR. WAS ALL COME OUT OF DEPARTMENT, BUT WE DO. 1 MARCH TRANSFER, IT'S NOTED AT THE TRANSFER, SO IT'S JUST KIND OF THE WAY WERE STRUCTURED. IT DOESN'T IT'S NOT GENERALLY JAMES. CORRECT. ABSOLUTELY AND THERE'S A THERE'S A TRANSFER SCHEDULE THAT WE HAD HERE TOO. BUT MOST OF THAT THE TRANSFERS THAT YOU SEE THERE ARE FOUR VEHICLES THAT WE BUY OUT OF OUR EQUIPMENT REPLACEMENT FUND.

IT'S FOR LIKE I SAID, RISK IN INSURANCE AND IN THAT LARGE TRANSFER FOR THE STREET RECONSTRUCTION THAT WE WERE TALKING ABOUT, SO THAT'S WHAT MAKES UP MOST OF THOSE TRANSFERS. ASTRAL SPIRITS THAT QUESTION WAS COMPARING THE END OF YOUR ESTIMATE OF THE ORIGINAL POINT, OKAY? SO I SHOULD DO THIS ON THE REVENUE SIDE WAY. ALWAYS THISS WAS A

[01:20:10]

BUT YOU CAN SEE HERE THAT ARE PUBLIC SAFETY NUMBER. COMPARES FAVORABLY TO FRISCO IN PLANO.

UM AL IS A LITTLE BIT OF AN OUTLIER. HOW MUCH OF THE DRUG WHEN THEY SPEND ON PUBLIC SAFETY GENERAL GOVERNMENT RUNS ABOUT THE SAME. WE'RE A LITTLE BIT LESS ON PARKSON LIBRARY.

ALLEN HAS 28% PARKSON LIBRARY. PUBLIC WORKS IS JUST A GENERAL FUND PORTION OF THE PUBLIC WORDS WHICH WOULD BE BUILDING OPERATIONS. AND ADMINISTRATION. ELEMENT SERVICES IS ABOUT THE SAME AS PLAYING WITH FRISCO. ALAN, A LITTLE BIT MORE DEVELOPED ONLY SPEND ABOUT 3% OF THEIR BUDGET ON RELEVANT SERVICES. AND YOU CAN SEE HERE IS WE WERE TALKING ABOUT TRANSFERS. EVERYBODY DOES THINGS A LITTLE BIT DIFFERENTLY, LIKE OURS ARE ABOUT 6% PROPOSED 21. AND YOU COULD SAY THAT THE OTHER CITIES DON'T DO THINGS THAT WAY. BUT.

PROBABLY NOT MOST OF THE REPLACEMENT WOMEN OUT OF OUT OF THEIR APARTMENT BUDGET, SO WE JUST DO THAT. SECRETS. TRANSFERS INCREASING. YES, IT'S VERY, VERY SMALL. THAT TRANSFER NUMBER IS $60 MILLION BUDGET. IT'S JUST SIX OR 7. IT'S NOT THAT MUCH OF AN OVERALL INCREASE, AND SOME OF THAT HAS JUST, UH WE'RE TRANSFERRING A LITTLE BIT LESS INTO OUR EQUIPMENT REPLACEMENT FUND THIS YEAR, A LITTLE BIT LESS IN OUR STREET. RECON. OVER IT. THAT EASY. YOU ARE LATE. I KNOW. KNOW. THINK WHAT YOU SAY. HERE. IS WE. LIKE I SAID. WE'RE WEIRD. A LITTLE BIT. LESS. TO STAY. WERE. TRANSFERRED. A LITTLE BIT. LESS. TOO. OF THAT.

EQUIPMENT. REPLACEMENT. SO. HIS NATIONAL CALL FOR A RE IMAGINING. YOU HAVE A QUESTION FOR YOU? OR MR GRIMES. WELL, I THINK WE ARE PART OF THAT YOU WEREN'T HERE. BUT YOU'LL SEE PRESENTATION. WE HAVE ADDITIONAL FUNDING FOR THE APARTMENT THAT I THINK IS PART EVERYBODY. IT'S ABOUT. WELL FOCUSING MORE ON THE ISSUES BEFORE THEY BECOME BIGGER ISSUES. CRIMINAL ISSUES. GET INTO THE MICROPHONE. I'M SORRY. UM. I DO BELIEVE THAT WHAT WE'RE PROPOSING IS SOME EXTENT, REIMAGINING. BUT WHAT YOU'RE SEEING HERE? I DON'T THINK IT'S GONNA BE REFLECTIVE OF THAT. YOU'RE SEEING WHAT? YOU'RE JUST EATING A MATHEMATICAL RESULT OF RELATIVELY SMALLER TRANSFER. NOBODY PURPOSES, WHICH THEY'RE IN ROOM RESULTS IN THE OTHERS LOOKING A BIT LARGER. WHAT. A LITTLE BREAKDOWN. POLICE DEPARTMENT IS PROBABLY FIRST RESPONDERS FOR SUPER SUPERVISION OF GREAT SERGEANT. IT'S ALL RIGHT. IT'S OUR OH, SORRY DRUG TESTING CONTRACT. I SEE THE REIMAGINING OF FAR. ORSON AGAIN IN WHAT YOU MAY HAVE MISSED EARLIER IS IN YOUR SUPPLEMENTALS, WHICH YOU HAVE SEE, THERE'S A LINE ITEM THAT IS NOT HOW I LIKE IT. IT'S AN ADDITIONAL $104,000 OKAY? THAT IS THE RESULT IN MANY RESPECTS OF FEEDBACK. WE'VE GOT NATIONAL EVENTS, ALL OF THOSE THINGS TO TRY TO STRENGTHEN OUR POLICE DEPARTMENT'S ABILITY TO ADDRESS COMMUNITY ISSUES. IT'S NOT A WHOLESALE, RE IMAGINING. I THINK OUR POLICE DEPARTMENTS WORKING VERY WELL FRIEND. I THINK, IF MORE POLICE DEPARTMENT'S OPERATED LIKE OUR POLICE DEPARTMENT, WE HAVE LESS PROBLEMS. I THINK WE'RE A MODEL IN MANY RESPECTS, BUT THERE ARE THINGS WE CAN IMPROVE IN TALKING WITH POLICE CHIEF SYSTEM MANAGER SHELTON AND OUR STAFF IDENTIFY THIS ADDITIONAL EXPENDITURE. THAT'S FOR YOU, THE COUNCIL TO CONSIDER. WHETHER OR NOT TO ADD TOO MUCH. ONE SMALL STEP TOWARD.

ADDRESSING COMMUNITY ISSUES KIND OF LIKE IT'S AKIN TO THE CHP PROGRAM, FIRE HEART. WE TRY TO GET IN FRONT OF ISSUES. WE HAVE FREQUENT FLIERS. CONFERENCE FLYER FOLKS WHO HAVE ISSUES AND WE TRY TO ADDRESS THOSE ISSUES UP FRONT, SO YOU DON'T HAVE TO BE RESPONDING. ON

[01:25:03]

THAT WOULD BE AVAILABLE AS A RESOURCE FOR THE DEPARTMENT. USUALLY THEY WORKED THE DAY SHIFT, POLICE CHIEF HAS NOT REQUESTED THREE PEOPLE THAT INDICATED THAT WE NEEDED MY RECOMMENDATION. GIVEN OUR BUDGET CONSTRAINTS IS WE'VE GOT ADDITIONAL FUNDING FOR THE COUNCIL TO CONSIDER AND. LET'S SEE. HOW GOES AND IF WE NEED TO ADD TO IT TO COUNSEL TO STAFF.

BEEN TO ISSUE JUST DON'T ARISE DURING THE DAY. SO YOU REALIZE THIS COULD BE A NEED. SOMETHING THAT WE'RE PROACTIVELY TAKING. WE'RE RE IMAGINING THIS BUDGET. ALMOST A $1,000,000 HERE. WE'RE WE'RE SERIOUS ABOUT TAKING PROACTIVE STEPS THAT WE SHOULD HAVE A MINUTE TO COORDINATOR FOR EVERY SHIP MORE FOR MENTAL ISSUES. JUST DON'T TAKE PLACE. TODAY WE'LL GET OUR MENTAL HEALTH CORNERS ARE NOT INTENDED TO BE COUNSELORS FOR THE COMMUNITY. THEY'RE AVAILABLE ALL THE TIME. NOR ARE THEY INTENDED TO DO WITH. THAT'S RIGHT. COORDINATED RESOURCE IS FOR WE HAVE PLEASE END OR MEMBERS OF BUT FOR EACH SHIFT, I DON'T THINK IT'S NECESSARY. I THINK WHAT WE NEED TO DO IS IMPLEMENT THIS IF THE COUNCIL CHOOSES AND LET'S SEE HOW IT GOES. AND LET'S SEE IF IT'S IF NEEDS TO BE EXPANDED. WE COULD DO THAT. I NOT RECOMMEND ONE PER SHIFT. I DON'T THINK THAT'S NECESSARY AND I DON'T BELIEVE OUR POLICE CHIEF THINKS IT'S NECESSARY. OKAY? ISSUES ARISE DAY AND NIGHT. JUST LIKE WE SAW VARIOUS HARBOR MENTAL EPISODE NOT IN THE DAYTIME. WHAT DO YOU MOST HAPPENS? LIKE THE CASE WITH VARIOUS TARVER. RECIPE.

HAD MENTAL EPISODE IN THE MIDDLE OF THE NIGHT. BUT THIS SERVICE THIS POSITION WOULD NOT HAVE MADE A DIFFERENCE IN THAT CASE BECAUSE THAT POSITION WOULD NOT BE DISPATCHED TO A SITUATION LIKE THAT. THIS POSITION IS A CIVILIAN POSITION THAT WOULD BE USED ORNATE RESOURCE IS FOR FAMILIES, HOUSEHOLDS AND INDIVIDUALS THAT HAVE. MAYBE HAVE SOME ISSUES THAT WE CAN HELP ADDRESS THOSE EARLY ON IN THE CASE OF THE TRAGIC CASE OF VARIOUS CAR, THIS POSITION WOULD NOT HAVE MADE A DIFFERENCE BECAUSE THAT POSITION WOULD NOT BE DISPATCHED TO GO TO A SCENE. WHERE IT'S A CRISIS MOMENT TO TRY TO INTERVENE. THAT WOULD NOT HAPPEN THAT WAY. BUT IT'S A COORDINATOR. AS I EXPLAINED, LANGUAGE SERVES AS A RESOURCE FOR OUR POLICE DEPARTMENT AND OUR POLICE OFFICERS. IN A VEIL. THOSE FOLKS SO IF THERE ARE CASES THAT ARE POLICE DEPARTMENT INVESTIGATORS WORKING ON THEY'VE IDENTIFIED.

HERE'S A HOUSEHOLD WITH SOME ISSUES WITH SOME MENTAL HEALTH ISSUES OR DYSFUNCTIONAL ISSUES AND OUR MENTAL HEALTH COORDINATOR POSITION CAN AVAIL. THOSE FOLKS TO RESOURCE IS THERE REMEMBER, OFTENTIMES IT'S FINANCIAL ISSUE WHATEVER. WE CAN AVAIL THEM TO LOW COST NO COST RESOURCE IS TO HELP THAT FAMILY IN THAT SITUATION SO THAT THE PROBLEMS DON'T GET WORSE. THAT'S A LONG THAT'S NOT SOMETHING THAT'S GOING TO BE IMMEDIATELY. THE FIRST RESPONDER TYPE OF SERVICE THAT IS MORE OF A RESOURCE AND THEREFORE THEY WOULDN'T BE DISPATCHED TO IT ON SCENE SITUATION IN $140,000. TO PAY SOMEBODY TO REVERSE INVITED TO 11? NO I WOULD SAY THAT THAT WOULD BE A WE NEED SOMEBODY THAT THAT COULD BE A RESOURCE TO SEND SOMEBODY TO SAVE SOMEBODY'S LIFE. THAT'S MORE WHAT I'M INTERESTED IN NOT WASTED $4000 OF TAXPAYERSMONEY T REVERSE INVITED TO RESOURCE I DISAGREE. THIS IS A WASTE OF MONEY. IT WOULD BE THE SALARY ITSELF WOULD BE, I THINK. 60 YEARS, 70,000 AND THEN THERE'S A VEHICLE THAT'S INCLUDED IN THAT COURSE SALARY. BENEFITS COST ASSOCIATED WITH THESE HOURS WOULD BE. 3 98,045 BENEFITS 20,000. ON TOP OF THAT. WEI NEEDS SOME THROUGH INNOVATIVE. TENSION IS NOT JUST. I THINK OUR POLICE DEPARTMENT IS EXTREMELY INNOVATIVE. I

[01:30:09]

THEY'RE INVOLVED IN THE POLICE DEPARTMENT THAT SOMEBODY LIFE LINE OR SOME OTHER COMMUNITY GROUP IS NOT GOING TO BE INVOLVED IN THAT BECAUSE IT'S NOT A POLICE MATTER. THIS IS USING THE RESOURCE IN THE POLICE DEPARTMENT. I UNDERSTAND THAT YOU DISAGREE WITH THAT.

WE'RE OFFERING IT UP TO THE COUNCIL. CONSIDER IT'S UP TO THE COUNSEL. IF YOU WANT TO ASK THE COUNCIL TO PUT MORE MONEY IN IT, YOU CAN CERTAINLY REQUEST THAT. BUT THIS IS WHAT WE PROPOSED, AND THIS IS IN CONSULTATION WITH OUR POLICE CHIEF. ASSISTANT MANAGER, SHELTON FINANCE DEPARTMENT AND IT'S FOR THE COUNCIL CONCERNS. THAT'S WELL, IF WE'RE GONNA HAVE A MENTAL HEALTH DAY THERE NEEDS TO BE COORDINATOR. ALL SHIPS. THIS IS NO DIFFERENT FROM THE CONVERSATION. WE HAD. WITH THE. IT IS NO DIFFERENT FROM THE CONVERSATION WE HAD WITH THE WITH FOOD HEALTH INSPECTORS. HEADERS WE REQUIRE FOOD HANDLER TO BE ON SHIFT AT ALL TIMES. WE HAD PEOPLE COME RIGHT HERE FROM THE COUNCIL AND SAY THAT FOOD HANDLERS HAD TO BE ALL THE PURPOSES. DURING ALL SHIPS HAVE BEEN COME APPEARED PROTEST THAT IN FRONT OF THE COUNCIL, SO IT'S MORE IMPORTANT TO HAVE FOOD HANDLERS ARE HER MATE FOR FOOD HANDLER TO BE AT A RESTAURANT IN THE CITY, BUT NOT IMPORTANT ENOUGH TO HAVE A MID TO HEALTH EXPERT ON SHIPS AT ALL TIME WITH POLICE DEPARTMENT. WE DIE. FOOD. HAND. THIS PORTAL. HEALTH. R R. R RED.

HERE SO I BELIEVE THAT MR SHIM WELL, THAT'S HERE IN THE EYRIE IN COMPLETELY DIFFERENT THINGS, UNRELATED FOOD, HAM OR REGULATION FOR HEALTH INSPECTORS HAS NOTHING TO DO.

WITH CREATING A MENTAL HEALTH, HER ADDING MENTAL HEALTH COORDINATOR POSITION TO STRENGTHEN OUR COMMUNITY POLICING ASPECT COMPLETELY DIFFERENT. I WOULD REJECT THAT COMPARISON. AND I WOULD JUST RECOMMEND THAT WE HAVE THE COUNCIL THAT WE MOVE ON.

SUBJECTS WERE MOVED TO THE PRESENTATION AND THE COUNCIL WILL DELIBERATE. CAN I MAKE ONE COMMENT? UH, I THINK WE'RE LOSING. MAMA. WE'RE TALKING ABOUT HIS. MENTAL HEALTH EXPERT.

YOU'VE GOT NEIGHBORHOOD POLICE POLICE OFFICERS. THAT'S WHAT THEIR JOB IS TO CONNECT WITH COMMUNITY. MY GUESS IS THAT WHEN THEY CONNECTED COMMUNITY THEY SEE A PROBLEM HEALTH ISSUE THEY'RE GOING TO COME BACK TO ME. PERSON. WE'VE GOT CITY AND WE'VE GOT A PROBLEM WITH PEOPLE. CAN YOU GIVE THEM THAT'S WHERE I'M NOT MR. ONE ON EVERY SHIP. BUT I THINK RIGHT NOW THIS IS KIND OF A TRIAL PRO. LET'S SEE HOW IT GOES. JUST. WELL, I WOULD SAY FURTHER THAT IT'S JUST THE WAY THIS WHOLE CONVERSATION TO PLACE AND STARTED IN WITH THE ASSUMPTION OF WHAT THAT POSITION WASS. CLARIFIED THAT WAS A DIFFERENT POSITION. THAT IT WOULD STAND REASON THAT. NOBODY UP HERE RIGHT NOW ACTUALLY HAS ENOUGH INFORMATION TO KNOW EXACTLY WHAT THAT POSITION IS DOING TO SAY. IT'S A WASTE OF MONEY. YOU'RE NOT A WASTE OF MONEY.

BUT WHAT I WOULD SAY IS THAT I. WOULD YOU LIKE US TO ALLOW THE PRESENTATION? WE FINISH IT, THEN COME BACK AND DELIBERATE. SO I'LL ASK US TO DO THAT. BUT I CERTAINLY AM IN SHAVER AND HAD PLANNED ALL ALONG. TEO. THE POLICE CHIEF AND. PICTURE THAT WANNA BE FULLY UNDERSTAND HIS.

IT'S HIS REQUEST. I'M GOING TO TAKE A GUESS THAT USED ON HE'S MADE THAT QUESTION THE WHOLE LOT MORE INFORMATION THAN ANY OF US HAVE BEEN ABLE TO DO. LOOKING OUT. IT. LINE. ON HIM.

SAY. WORDS. SHE PAY. SO WHAT? YOU ASK HIM INTO ASK HIM TO GO INTO MORE DETAIL AND THEN OFFER UP WHAT ARE ASKED HIM TO. IS THERE OTHER NEEDS THAT HE SEES THAT MAYBE HE'S NOT ASKING BECAUSE OF THE BUDGET HERE THAT WE'RE LOOKING AT, IS THERE CERTAINLY ASKED THOSE QUESTIONS.

THAT COUNSEL JEN BRO UP OTHER POSITIONS AND GAIN HIS INPUT. I KNOW THAT I WANT TO MAKE SURE YOU GET ONE. APPEAR. WE ARE PERFECT. SPOT. ARE PLEASE. R. FUN. IN WAYS. NOT NECESSARY.

JUST WITH POLICE BUT ANCILLARY. POSITIONS AND DISCIPLINES THAT BENEFIT THEM. SO THAT'S A

[01:35:06]

MRS. THOSE QUESTIONS. I THINK LOOK UPON IT. GREAT. THAT'S CORRECT THAT YOU BELIEVE, THOUGH, THAT I EXPLAINED THAT YOU HAVE BEFORE YOU A JUSTIFICATION FOR THE POSITION AND EXACTLY WHAT IT'S GOING TO DO. IT'S WRITTEN I THINK I'VE REPRESENTED THAT. I DON'T THINK WE NEED MORE THAN ONE. AT THIS POINT. I. CERTAINLY THE POLICE CHIEF'S SERVICE SUBJECT MATTER EXPERT. WE COULD BRING HIM FORWARD IN A WORK SESSION IF YOU WANT TO DISCUSS THIS PARTICULAR ITEM IN FURTHER DETAIL, WHICH IT SOUNDS LIKE BEING QUESTIONED. AND WE'LL BE HAPPY TO DO THAT. UNCOMFORTABLE WITH REQUEST AND COMFORTABLE WITH MAKING REPRESENTATIONS MADE BEFORE YOU. I THINK WE NEED ONE POSITION AND WE WOULD VERY MUCH APPRECIATE IT IF THE COUNCIL TO CONSIDER FUNDING. SO. THERE. THERE IS A NARRATIVE ON THAT POSITION THAT MAKE SURE THAT YOU GET GET, DON'T BELIEVE THEY HAVE THOSE CHEAP. THE ACTUAL NARRATIVE ITSELF. I WILL MAKE SURE IS PROVIDED. NEVER WILL GET THAT BEFORE YOU LEAVE TODAY. BUT I'LL SKIP AHEAD ONE SLIDE BECAUSE WE ARE TALKING ABOUT ACCEPTABLE DEPARTMENT. LEE. SO AND THEN I'LL GO BACK A SLIDE TO TALK ABOUT THAT. BUT PUBLIC SAFETY'S TOTALS FATHER AND 33 POSITIONS. PURPOSEFUL.

YOU'RE 21 THAT IS INCLUDED IN YOUR PROPOSED BUDGET. FRUIT CONSIDERATION. THERE ARE FIVE EMPLOYEES POLICE DEPARTMENT NOT INCLUDE THE NEW POSITION, WHICH IS NOT CURRENTLY FUNDED. FOR FIRST RESPONDERS IN AN S R O SERGEANT, I WILL SAY THAT WE DO RECEIVE FUNDING FROM THE SCHOOL DISTRICT TO HELP US OFFSET THE COST OF THE SORROWS. SO WE WOULD RECEIVE HALF OF THAT SALARY BACK FROM THE DEAD SO THERE WOULD BE A CORRESPONDING LOSS OF THAT ONE COMES OUT OF THE BUDGET. FOR BUT WE DO RECEIVE MONEY FROM THE CITY TO HELP US WITH THE BACK. THAT PROGRAM. AND THEN IN THE FIRE DEPARTMENT. THERE ARE THREE EMPLOYEES TOO FIRE FIRE, PARAMEDICS AND PERMISSION. ONE NURSE PRACTITIONER. I MUST GET BACK TO YOUR GOVERNMENT. I ALWAYS LIKE TO TELL EVERYBODY WHAT HIS JOURNAL GOVERNMENT ITS INTERNAL SERVICES, IT'S FINANCED THE MANAGER COURTS AND CITY SECRETARY'S OFFICE TONIGHT IF YOU ALL OF OUR INTERNAL BUSINESS FUNCTIONS. ACCUSTAFF CONDITIONS ARE EXTREMELY LIMITED THIS YEAR, YOU SEE ONLY TO NEW POSITIONS BEING RECOMMENDED FOR OUR INTERNAL SERVICES FOR FISCAL YEAR 21 1 OF THOSE IS AN ANALYST IN HR AND ON ANALYST FOR OUR PAYROLL DIVISION IN SCIENCE. CAROL WAS TWO PEOPLE. THIS WOULD EXPAND A PERIL TO THROUGH. WE DISCUSSED WHAT'S THE PUBLIC SAFETY BUDGET KNEW SOME GOING TO MOVE TO DEVELOPMENT SERVICES. THIS ONE IS DOWN A LITTLE BIT OVERALL FROM OUR FISCAL YEAR 20 ORIGINAL BUDGET. THERE WERE SEVERAL STUDIES AND EQUIPMENT THAT WAS FUNDED THIS 20 NEW EQUIPMENT. LIVES BUT OVERALL ASKING FOR TWO NEW POSITION

[01:40:04]

PUBLIC WORKS. THIS IS WHAT'S AGAIN THE GIRL. FUN PORTION OF PUBLIC WORKS MAKES UP PROBABLY LESS THAN HALF OF TOTAL PUBLIC WORKS. THIS IS ONCE AGAIN STREETS, BUILDING, BUILDING OPS AND PUBLIC WORKS ADMINISTRATION. THE OTHER FUNCTIONS WOULD BE ANOTHER FUNDS WITH THE SALT AWAY. SURFACE WATER FLEET. WE'LL TALK A LITTLE BIT ABOUT THOSE REALLY NOTICE POSITIONS AND PUBLIC WORKS THIS YEAR, BUT THERE IS A PAYMENT CONDITION ASSESSMENT STUDY THAT WERE ASKING TO BE AT ISSUE. PARKSON LIBRARY HIGH DEMANDS ON THESE APARTMENTS.

THE THREE PART TIME CUSTOMER SERVICE REPS ARE ARE GOING TO BE UTILIZED AT THE SENIOR REC CENTER. AND THE BUILDING ATTENDANT IS IN THE LIBRARY, JUST JOURNAL DEMANDS CAUSED BY THE PANDEMIC. AND, FRANKLY, EVEN WHEN J J G LIBRARIES. FULL CAPACITY. THIS BUILDING ATTENDANT IS NEEDED. ESPECIALLY WITH THE NEW ADDITION. GLAD TO SEE THAT OPENED THIS YEAR. WAY DID ADD. SOME PERSONNEL LAST YEAR TO HELP WITH THAT NEW EDITION, SO WE'RE REALLY GLAD TO SEE THAT. OPEN, OPEN UP. WAIT TALKABOUT THIS LOT EVERY YEAR. WE USE THIS REMINDER TO TELL YOU THAT THERE ARE GRANTS TO THE COMMUNITY MADE FROM THE GENERAL FUND. THESE ORGANIZATIONS DO NOT REAPPLY ANYWAY. JUST WANTED WAY. ALWAYS LIKE TO MAKE THESE KNOW THERE ARE A LOT OF THE BUDGET. IN CASE THERE'S EVERY DISCUSSION ABOUT THEM. OF THE ARTS COMMISSION IS PART OF PART OF THAT, SO I WANT TO PUT THAT UP THERE. TRANSITION OVER TO THE CIA REALLY QUICK THAT THAT IS THE GENERAL FUND PORTION. MARKET JUST QUESTION ABSOLUTELY WHERE YOU'RE GOING SO. ENGINEER THAT'S FUNDER FROM CIA. MAYBE MISUNDERSTANDING SO. HAVE OTHER POSITIONS THAT WERE FUNDED FROM CAPTAIN. WE HAVE VERY FEW, BUT, FOR INSTANCE, PATRICIAN JACKSON EYES FUNDED WHO IS OVER ALL OF OUR FACILITIES? WE USE A LITTLE, VERY, VERY LITTLE BITS OF THOSE FACILITIES FUNDS TO ACTUALLY FINANCE HER POSITION. MANY INTERESTING ABOUT INCORRECTLY, BUT WE'RE TALKING ABOUT WHAT WE DO TRANSFERS, YOU KNOW, SO THAT WE HAVE ALL OUR PURCHASES OCCURRING FROM. CRACKED ONE CENTRAL SCHOOL. IT SEEMS LIKE CAMPBELL FUND'S FUND POSITIONS MADE. MATCHUP OF WHICH IS ALWAYS POSSIBLE. WELL, THIS THIS IS THIS ISN'T ACTUALLY A TRANSFER. WE GO TRANSFER OF THE FUNDS IN. THESE PEOPLE ARE JUST PAID DIRECTLY FROM THAT, AND IT'S BECAUSE THEY ARE DIRECTLY RELATED TO THE PROJECT IF YOU WERE GOING TO HAVE A PROJECT MANAGER COMMITTEE THAT WOULD PAY THOSE FROM CAPITAL FUNDS, THAT IS THE PHILOSOPHY BEHIND THOSE. MARK FROM A COUNT MINUTES. IT'S A KID TO SOMEBODY BEING GRANT FUNDED. SO, FOR INSTANCE, IF WE HAD A FEDERAL TRANSPORTATION GRANT HIGHER POSITION UNDER THE AUSPICES OF THAT GRANT BE PAID BY THE HOUR. SINGLE. AREN'T MOVING ON TO THE CAPITAL. PURPOSE BUDGET SAY WE HAVE A VERY LARGE CAPITAL BUDGET OVER THE NEXT FIVE YEARS TOTAL OF OVER $1.1 BILLION INCLUDES WARREN WASTE WATER UTILITIES. A LOT OF THESE ARE DEBT FUNDED. THEY THIS DOES INCLUDE THE $350 MILLION PACKAGE THAT WAS APPROVED IN 2019 AND ANY. PLANNED DEATH SELLS OUT OF. OF OUR UTILITY WATER PLACE WATER FUND, BUT A CZ YOU COULD SEE IT IS. THIS IS NEEDED TO KEEP UP WITH THE GROWTH OF THE CITY. BUT IT IS. IT IS A VERY, VERY LARGE NUMBER OF PROJECTS. THAT WILL BE OUR PLANNED OVER THE NEXT FIVE YEARS. WHETHER ALL THOSE WAYS COMPRESS THOSE INTO FIVE YEARS, IT PROBABLY WILL TAKE A LITTLE BIT LONGER THAN FIVE YEARS TO DO THIS AMOUNT OF PROJECTS, BUT BUT FROM. FOR PLANNING PURPOSES. WE LIKE TO KEEP IT WITHIN THAT WINDOW, PROBABLY SPREAD THOSE OUT OVER A LITTLE BIT LONGER, TOM, BUT. THAT SHOWS YOU THE

[01:45:05]

POSSIBLE PARKS LAND ACQUISITION THAT THAT'S AH, PROJECT IF WE DO PURCHASED PLAYED THAT WHEN WE WOULD SELL BETTER THAT TIME, IT'S NOT SOMETHING WE RESULT THAT AT BEFORE WAY PURCHASED THE LAND, BUT YOU CAN SEE THAT WE HAVE QUITE A FEW NEEDS COMING UP FOR A PHYSICAL.

YOU'RE 21. WITH THAT, UM. THERE. NO QUESTIONS ON C A P. I WILL TALK FOR A WHILE. I WOULD LIKE TO INTRODUCE TREVOR DAGON, WHO IS A SENIOR FINANCIAL ANALYST IN BUDGET AND FINANCE.

I ASKED JOINS THIS YEAR SO THIS IS HIS FIRST TIME IN PRISON. TO YOU. HEY. GONE. TO TALK. ABOUT SO OF OUR OTHER FUNDS, WHICH WOULD BE WHAT WATER WASTE WATER SURFACE WATER DRAINAGE IF I MIGHT JUST INTERJECT MR MAYOR, COMMITMENT COUNCIL, ARE YOU OKAY? BREAK OR YOU OKAY, MOVE.

THIS IS PROBABLY A GOOD WAY POINT GOING INTO CAPITAL. I KNOW. COUNSELOR PHILLIPS HEAD STEP OUT. YES, WE ALREADY GET GOING. MORNING COUNSEL IS MARK MENTIONED EARLIER. MY NAME'S TREVOR DAGG, ANALYST IN THE BUDGET DEPARTMENT, SOMETIMES REFERRED TO AS THE OTHER TREVOR. BUY SOMETHING FOR BEING HONEST, IT'S REALLY UPGRADED TREVOR, WITH BETTER TRAVEL, SO THEY SAY, I DON'T KNOW. WITH COLLEGE. YEAH HOW FOLKS AT THAT ONE, HUH? ANYWAY I'M HERE TO TALK TO YOU GOING TO START OFF HERE TALKING ABOUT SOME OF THE HIGHLIGHTS AND OUR WATER AND WASTEWATER FUND. S SO THIS IS SOMETHING WE STARTED BACK IN MY 17 I BELIEVE TO CONTINUE OUR WATER LINE REPLACEMENT PROGRAM SO THAT SOMETHING WILL BE CONTINUING. INTO THE NEXT FISCAL YEAR. MARK WENT THROUGH SOME OF OUR LARGER CAPITAL PROJECTS THAT WILL BE TAKEN CARE OF NEXT YEAR. ON DH TO TAKE CARE OF THOSE, YOU KNOW, WE DO ANTICIPATED THAT SALE OF REVENUE BONDS FOR THOSE PROJECTS. AND THEN BELOW THAT THOSE WERE SOME OF THEIR SOME OF THEIR MAJOR SUPPLEMENTALS THAT THEY'VE REQUESTED FOR FISCAL YEAR 21. THE NEXT ONE. SO HERE WE HAVE A BREAKDOWN OF THE RATES MARK MENTIONED THIS EARLIER. HERE AT THE TOP. THIS'S KIND OF WHAT NORTH TEXAS WATER DISTRICT IS DOING. HAS HE MENTIONED NO INCREASE ON THE WATER SIDE OF THE RATES. HOWEVER, A CZ WE HAVE DONE IN THE PAST, WE'RE GONNA PASS THROUGH THEIR RATE INCREASE. THEN WE'RE SEEING AND WE'RE SHOWING ABOUT A 5.5% INCREASE ON THE WASTE WATER SIDE ON THAT WE WILL PASS THROUGH. HE'S PASSED THROUGH RATES IT ALLOWS FOR US TO KEEP OUR WATERFRONT SELF SUFFICIENT. AND DO THAT INCREASE WILL BE ABOUT A $3.45. INCREASE ON THE AVERAGE 8000 OUT OF 8000 GALLON BILL PER MONTH. HERE. WE HAVE THIS SLIDE. I THINK WE'D LIKE TO SHOW THE SLIDE EVERY YEAR. AND IT SHOWS YOU'RE OPERATING CAPITAL. COSTS FOR THE WATER FUND OVER ABOUT THE NEXT DECADE. AS YOU CAN SEE THERE, THE GREEN BAR. THOSE ARE OUR OPERATING COSTS MINERAL WATER FUND. BUT OUR BIGGEST EXPENSE ARE THE EXPENSES THAT WE TAKE ON FROM THE WATER DISTRICT. SO THEIR COSTS OUR BIGGEST EXPENSE AND THAT FUND BY A FAIRLY LARGE MARGIN. THEY ARE EXPECTING SPIN INJURES. IS THAT MOSTLY ON TRANSFER STATION. YOU'RE TALKING ABOUT ARE OPERATING. I MEAN, THAT INCLUDES EVERYTHING FROM YOU KNOW, PERSONNEL IS GOING TO BE A LARGE PART OF IT. YES, AND HE KIND OF YOU KNOW THEM DOING MAINTENANCE, SON. ANYTHING YOU KNOW, THEY'RE C'MON PROGRAM IS A LARGE PART OF OUR EXPENSES THAT WE DO. YOU KNOW, REPLACING PIPES OR. MAIN, IT'S ON LIFT STATIONS, YOU KNOW, FIRE HYDRANTS. SO YES, TIO. TWO THINGS HERE. ON THE GREEN SIDE.

THE OPERATING SIDE. THAT'S THAT'S PERSONNEL. THAT IS, THAT IS APPLAUSE. THAT'S MAINTENANCE. THAT'S EVERYTHING THAT WE. WE'RE USING T KEEP THE WATER SERVICE GOING OR WASTE

[01:50:01]

SO FIRST OFF, THEY'RE SOLVED. WASTE FUN. SALT WASTE RATES. WE HAVE MAINTAINED THOSE THOSE. WE HAVE NOT INCREASED THOSE SINCE 2000 SIX'S HAVE TO SAY THE SAME. AND I BELIEVE IS WAS EITHER PAUL OR MARK MENTIONED EARLIER. CURRENTLY, OUR STAFF IS IN DISCUSSION WITH OUR SALT WASTE PROVIDER. THOMAS BARS AT A STRUCTURE GOES. THEY ARE PROPOSING JUST ONE SUPPLEMENTAL THIS YEAR AGAIN. OBLIQUE PAUL MENTIONED EARLIER. IT WAS A CONSULTANT SERVICE FOR OUR SALT WASTE MANAGEMENT PLAN. AND THEN SURFACE WATER TRAINS LIKE SALT WASTE NO CHANGE TO THE FEE SCHEDULE THERE. THOSE WERE LAST UPDATED F 15 AND THEN AGAIN JUST ONCE, SUPPLEMENTAL THERE.

STREETS WEAK AND CREW LEADER A SWELLS THE ACTUAL STREET SWEEPING TRUCK. AND THEN HERE'S OUR EQUIPMENT REPLACEMENT FUNDS SOMETIMES MAY HERE PRODUCE FUN. 32 INTERNALLY. BUT THIS FUN WAS INITIATED BY 14 KIND OF AS A WAY TO CENTRALIZED ANY OF THOSE EQUIPMENT REPLACEMENTS.

FACILITY UPGRADES REPAIRS. BIG PART IS THE GENERAL FUND, YOU KNOW TRANSFERS INTO IT. AND THE MAIN REASON FOR IT WAS SO THAT WE COULD, YOU KNOW, BUILD UP CASH FUND OR CASH FUND. MANY OF THOSE EQUIPMENT, REPLACEMENTS VEHICLE REPLACEMENTS. MAJOR FACILITY REPAIRS WERE UPGRADE.

YOU KNOW SUCH ROOFS, H BACKS. I'M ANYTHING LIKE THAT, RATHER THAN HAVING TIO NO ISSUE DEBT ON ANYTHING LIKE THAT WERE ABLE TO CASH FUNDING USING THAT FUND. AND THEN HE WAS JUST KIND OF A BREAKDOWN OF WHAT WE'VE SPENT OUT OF THAT FUND THIS YEAR SO FAR, AND WE SPEND A LITTLE OVER $5 MILLION. AND THERE'S KIND OF A BREAKDOWN OF THE DIFFERENT GENERAL FUND APARTMENTS THAT HAVE USED IT. YOU CAN SEE FIRE POLICE. OF THE TWO BIGGER PARTS OF THAT, THEN YOU ALSO HAVE OPERATIONS, WHICH IS THE PUBLIC WORKS. YOU KNOW, THEY TAKE CARE OF YOU KNOW ANY OF THE FACILITY REPAIRS UPGRADES. GO NEXT ONE ON THESE LAST FEW SLIDES, I'LL LEAVE YOU WITH. JUST A COUPLE PICTURES OF DIFFERENT THINGS. WE'VE TAKEN CARE OF OUT OF THAT FUND. YOU

[01:55:07]

PROBABLY THIS OR TEAM. THIS NEXT THIS ONE HERE JUST BECAUSE OF CASH RESTRAINTS WE'RE SEEING IN THE GENERAL FUND THE FIRST YEAR THAT WE WOULD PROBABLY RUN THAT AS A NEGATIVE IN THAT FUND, BUT THAT'S WHAT WE PUT THE MONEY ASIDE FOR WAS FOR A RAINY DAY, SO. NEGATIVE FOR THE YEAR.

ONLY WE'RE GOING TO USE SOME OF THAT BALANCE. SO SPEAK, BUT THAT'S UH. IT'S CASHMAN'S EVERY ONE OF THOSE, AND THEN WE DO PUT IT PUT IN THE SAME AMOUNT FOR VEHICLES TO CASH. THOSE VEHICLES OUT OF THAT. ABSOLUTELY. WE'RE NOT HAVING A DEBT FUND ANY OF THOSE TYPES OF ITEMS. SO. TALK A LITTLE BIT ABOUT THE AIRPORT. THEN WE'LL TALK ABOUT OUR COMPONENT UNITS ARE CBC, CBC WITH FORMAL PRESENTATION, BUT THE AIRPORT IS ADJUSTING TO THE PANDEMIC, WELL BALANCED BUDGET PROPOSED FOR FISCAL YEAR 21 INCLUDING IS ALWAYS THE REINVESTMENT, THEREFORE, CONSTRUCTION FUND AND AS ALWAYS MENTIONED THE GENERAL FUND CONTRIBUTION TO THE AIRPORT ENDED IN FISCAL YEAR 19 WITH FISH WERE 19 BUDGET WITH FIRST BUDGET NOT TO HAVE THE THAT INCLUDED WAS FACED WITH 20 BUDGET. SO THAT IS THERE IS NO GENERAL FUND TRANSFER PLANNED FOR 21. LIKE I SAID, THIS IS A BALANCED BUDGET ON ABOUT ON THE AIRPORTS REVENUES. ABSOLUTELY. GIRL. THAT'S ALL. WE DID IT. YES, FOR THE CLASS SETS, BUT FOR ANYTHING FUTURE, POSSIBLY BECAUSE I ANGLE THAT ON YOUR NEXT AGENDA WILL BE APPROVING THE SALE FOR THE FBO TERMINAL. THAT WILL COME OUT OF AIRPORT TO SEE YOURSELF FOR THOSE WILL COME AT AIRPORT REVENUES WILL NOT COME OUT OF THE BERKEL ASSETS AT THE AIRPORT. THAT AIRPORT WILL BE COVERING THOSE COSTS AS WELL. AND THOSE ARE PLAYING FOR NOT BECAUSE THEY'RE COSTING FISCAL YEAR 21 BUT THOSE WOULD BE INCLUDED 20 TO MUCH OF THE AIRPORT IS PREPARED TO TAKE ON THOSE THAT RESPONSIBILITY. SEVEN. YEARS. YES, 20 YEAR NOTES. MOST OF OUR NOTES OR 20 YEARS, WE'D DO TAKE OUT SOME TEXTS. 20 YEARS. WE'RE PAYING INTEREST. CHEERS.

COMPLETELY RETIRED THAT ONE. SO THERE ARE A FEW SUPPLEMENTALS THIS YEAR. REPORT NO PERSONNEL WITH PANDEMIC THAT THE OPERATION HAD BEEN AFFECTED SOME, BUT THEY RESTORE BALANCE.

BUT EVEN WITH SOME SUPPLEMENTAL SO JUST SOME EQUIPMENT HERE, CRACK DOLLY MOORE AND A GOLF CART OUT OF THE FBI. SO. TO GET GOOD NEWS FROM THE AIRPORT FOR THE YEAR. TALK ABOUT OPPONENT UNITS WILL START WITHIN CBB, BUT I'D LIKETO ALWAYS TALK ABOUT THE HOTEL MOTEL TAX FUND THAT THAT ACTUALLY FUNDS CVB. UM, WE'RE. HOTEL MOTEL ATTACKS WE'VE RECEIVED, THEY MUST BE EXPENDED ON THESE CRITERIA MUST DIRECTLY HANDSOME, PROMOTE TOURISM. AND THEN THERE'S A CRITERIA TO THERE'S A LIST OF NINE STEPS POORLY ABOUT CATEGORIES. THAT WE CAN SPEND THE HOTEL OCCUPANCY TAX ON. ONE OF THOSE BEING A CONDITION VISITORS BUREAU, OF COURSE.

[02:00:03]

BUT THE CAN AND QUALITY OF LIFE PROJECTS. ONCE AGAIN. THIS IS THERE. BUDGET AND STAFFING LEVELS. THEY TOO ON STAFF. AND, UH, THEY'RE THEY'RE FUN BALANCING THINGS THERE. WITH THAT THAT IS THE FORMAL PRESENTATION PART OF THE BUDGET WORK, BUT WORKSHOP WE HELD THE TAX RATE RECORD VOTE ON AUGUST 4TH THAT WAS PROVED IN THE. WITH THE CURRENT LEVEL, WHICH WAS FOUND ON OF THE TEENAGERS PROPOSED BUDGET IS THE REVENUE RATE OF FATHER AWAY. WE STILL WILL HAVE A PUBLIC HEARING ON THE TAX RATE. IF YOU ALSO CHOOSE TO EVEN TO HAVE THE REVENUE, RIGHT? WE STILL WILL HAVE YOU WOULD NOT HAVE BEEN REQUIRED TO HAVE A PUBLIC HEARING, BUT BECAUSE WE PROPOSE THE PROBLEM WAY STILL WILL HAVE A PUBLIC HEARING. THAT YOU KNOW, BUT THIS STILL DOESN'T GIVE YOU THE LEVERAGE OF THISS COUNSEL, SO CHOSE TO GO TO 51 STILL COULD. FIRST PUBLIC OFFICIAL PUBLIC HEARING ON THE TAX RATE IS A REGULAR SEPTEMBER THE FIRST MEETING. AND THEN THE CULMINATES ON SEPTEMBER 15TH WITH THEIR OWN TAX RATE, AND THE SECOND PUBLIC HEARING ON THE BUDGET AND THE BUDGET ADOPTION. LIKE I SAID. THAT IN THE PRESENTATION WILL BE STAND FOR ANY QUESTIONS OR COMMENTS THAT YOU HAVE AT THIS POINT, AND I JUST WANTED BEFORE THAT. I JUST WANT TO TELL A C MAJOR OFFICE. THANK YOU. MENU. THANK YOU. LIKE, SAY A SPECIAL THANKS TO BUDGET STAFF TRAVEL BAG. END OF. DONNA, WHO IS NOT HERE TODAY AND MOVE OUT TODAY, AND I ALSO LIKE TO THANK EMPRESS IN ALL HER STAFF FOR ALL YOUR HELP, SO THANK YOU, EVERYBODY. IT TAKES A TEAM TO PUT ALL THIS TOGETHER. AND WITH THAT I WILL BE HAPPY TO TAKE ANY QUESTIONS OR COMMENTS. SO WAY WENT FROM 156. MILLION.59 JUST INCREASED BY $3 MILLION. THAT'S THE END OF YOUR LAST YEAR'S ADOPTED WAS AROUND 57 58 SO REALLY, IF YOU

[02:05:10]

BECAUSE I THINK WE PROBABLY PROBABLY ADDITIONAL HALF A $1,000,000,000 ON THE REAL ESTATE SITE JUST WITH COMMERCIAL AND RESIDENTIAL. DO WE KNOW WE KNOW HOW MUCH.

RELIVING THE INCREASE IN EVALUATIONS, $771 MILLION. $5 MILLION. TAXES. FIVE. SO I GUESS IN MY I GUESS I'M VERY IMPRESSED. WE KEEP GROWING MORE CITIZENS. EVERYTHING'S GOING AND WE WENT UP $3003 MILLION. THAT'S. IT'S ABOUT A SHOESTRING, BUT I THINK YOU KNOW COMES. I GO OVER IT. YOU PEOPLE ALWAYS KEEP THINKING. WELL THERE'S EITHER WASTE OR THERE'S THAT ACTUALLY DON'T SEE IT, BUT I APPRECIATE THE FACT THAT WE'VE. WE HOLD TIGHT A TIGHT BUDGET GETTING THINGS DOWN. MY CONCERN IS JUST THAT WE GET THE THINGS DOWN THAT WE WERE ABLE TO SERVE OUR CITIZENS. WE WILL PROTECT OUR CITIZENS WERE ABLE TO BUILD WHAT WE NEED TO BUILD WITH OUR. YOU KNOW, PLANNING DEPARTMENT. ALL THAT GOES ON OVER THERE.

MAKE SURE WE HAVE EMPLOYEES. DO YOU GROW? UH BUT I APPRECIATE WHAT YOU'VE DONE. I APPRECIATE EVERYBODY'S WORK ON IT. OF THE STATE. BE EXPRESSED. EVERYONE KNEW HOW. ASSISTANT IS SUCH A HUGE CHALLENGES HERE WITH EVERYTHING THAT'S HAPPENED. PANDEMIC. THE, UH TRYING BALANCE THAT. SHORTFALLS OFF THAT WITH UNDERSTANDING AND NO NEED OF OUR RESIDENTS TO YOU HAVE A LOWER TAX RATE. THOSE TWO THINGS THAT. CAUSES WITH BOOKS HAPPENING IN NEED, WHERE POLAR OPPOSITES OF ONE ANOTHER. THAT'S WHAT HAS BEEN ACHIEVED HERE ON A NEW REVENUE RATE. I DON'T KNOW THAT IT'S HAD THAT LAST 20 YEARS. AND AT A TIME WHEN REVENUES FROM CITY OR TREMENDOUS THAT CHALLENGED SO. AUSTIN I THINK THE RESIDENTS, RESIDENTS OF MCKINNEY WILL GREATLY GREATLY APPRECIATE THAT, AND CERTAINLY THAT'S ALL TO THE STAFF FOR ALL THE WORK.

INNOVATIVE. PROCESSES THAT YOU'VE HAD A LOOK AT IT. IS TO GET THERE. THANK YOU. JUST A COUPLE OF COMMENTS. SAME TENOR OF. THEY BEGIN 4% OF OUR POPULATION, WHICH IS REALLY WHAT STOOD OUT TO ME IS THAT YOU KNOW WE HAVE THIS. ONE OR 2% INCREASE, BUT GET 4% FOR PEOPLE FOR GUESSING. HAVE 4% OF PEOPLE LAST YOURSELF. IT'S FABULOUS, LIKE ALWAYS, COUNCIL ARE CONCERNED ABOUT THE PERCENTAGE OF COMMERCIAL REAL STATEMENT. OUR VALUATION.

NUMBERS AND IT'S CREEPING UP 1% A YEAR, AND WE'RE JUST GET WITH LARGE NUMBERS HAVE IT 25 30% OVERNIGHT, BUT WE'RE 21. SO IN THE RIGHT DIRECTION, AND YOU KNOW THE LAST. FOR FIVE YEARS AGO, WE WERE TRACKING CHILDREN SOMEWHERE AROUND 8% YEAR OVER YEAR OF INCREASING COMMERCIAL POWER. WE'VE INCREASED THAT OUR LAST YEAR'S PERCENT OVER LAST YEAR. IT WAS ACTUALLY WAY SAVED YOU RIGHT THEN. AND BE REMISS IF WE DIDN'T SAY THAT. THANKS ON OUR SOCIETY IS IN DC SO MORE PROJECTS IN MIND. AT THIS POINT FOR THE LAST YEAR. THE PAGING SPECIAL. WE SHOULD TAKE ALL THE THINGS I WON'T SAY. GET ALONG SENTIMENTS OF THEIR BODY COUNSELOR. AS A STAFF HAVE RISEN TO THE OCCASION. ALL RISE IS OUR MOTTO. SO THANK YOU GUYS FOR RISING TO THE OCCASION.

ALWAYS NO. I'LL TALK TO YOU. YES, PROBABLY WANT ONE. OUTSIDE THE PUBLIC EYE. GREAT. ELSA.

[02:10:07]

AND TRY TO ENCOURAGE US TO THE BEST MARKET. AND. BE GREAT TO SIT UP HERE. JUST GIVE YOU.

APPLAUSE AND ENCOURAGEMENT ALL THE TIME. ALSO TO MOTIVATE YOU TO BE EVEN BETTER. RIGHT. KITTY IS A GREAT PLACE TO LIVE, BUT WE WANT TO STRIVE TO BE EVEN BETTER. NONE OF US ARE PERFECT, BUT WE WANT TO STRIVE FOR PROFESSION AND THAT'S HOW WE CONTINUE TO PUSH THAT YOU SO AT TIMES IT MAY SEEM WE'RE HAVING UNCOMFORTABLE CONVERSATIONS OR THAT YOU KNOW IT'S TIGHT IN THE ROOM. BUT THAT'S BECAUSE I JUST WANT US TO CONTINUE TO GROW TO BE BETTER. THAT DOESN'T MEAN THAT I WANT TO TAKE AWAY FROM THE GREAT WORK THAT SHE DOESN'T DO IT. AND SO AGAIN, I SAY THANK YOU FOR ALWAYS RISES TO THE OCCASION. AND DON'T LET THESE UNCOMFORTABLE. TIGHT MOMENTS AT TIMES TAKE AWAY. YOU GUYS ARE AMAZING. THIS CITY IS AMAZING. YOU'RE DOING GREAT WORK. THANK YOU FOR RISING EDUCATION. LET'S CONTINUE TO CONTINUE TO BE BETTER. AGAIN.

IT'S HARD AFTER THAT. CAN TELL YOU THAT. I MISSED THE BUDGET SESSION LAST LAST YEAR. MOTOWN.

JUST BREATH. INFORMATION THAT'S PROVIDED ALL THE WORK THAT GOES INTO THIS. I JUST CAN'T IMAGINE HOW MUCH WORK HOURS. DEDICATION HEARS FROM THE STAND. AND SO I WANT TO THANK THE STAFF. FOR ALL THAT YOU DID. I THINK THE CITY IS POURS FOR GREAT THINGS. WE KEEP CREATING JOBS WE KEEP.

BRING THE TAX BASE TO THE CITY. WE HAVE QUALITY PROJECTS THAT WE CONTINUE TO GET FOR THE CITY. AND IT ALL COMES FROM BILLY LEADERSHIP. AND CITY STYLE. AND MAKING SURE THAT WE TAKE THOSE CONTACTS AND. BRING HIM INTO THE CITY AND FROM OUT THOSE CAN SO AGAIN, THANK YOU FOR CALLING. IS THIS PRESENTATION WILL BE ATTACHED TO THEM. IT SHOULD BE ATTACHED NOW, AND I THINK THAT THERE'S ACTUALLY BEEN SOME EDITS FROM SOME OF THE THINGS THAT WE TALKED ABOUT EARLIER AND WE HAVE UPDATED THOSE LOTS ALREADY, SO. MAKE SURE THAT EVERYBODY HAS A COPY AND IT SHOULD HAVE ALREADY BEEN OUT ON THE WEB SITE FOR YOU. YOUR RESPONSE ALL PRESENTATIONS BE LEAST 77 PAGES. SURE EXAMPLE OUT THERE WHAT WE DO SO. WAKEN HAD. MORE PICTURES OF AIR CONDITIONERS THAT SORRY. DID SHE REALLY SINK IN TO THE OUR TOUR POPULATION THAT. ALL THIS IS BEING ACHIEVED. IT IS WITH A PER CAPITA. MOUNT STAFF PER CAPITA, WHETHER THAT BE CITY STAFF OR LIFE SAFETY POLICE LOWER THAN ANY OTHER CITIES AROUND US, AND THAT'S BECAUSE. AND SUCH A TESTAMENT TO OUR STAFF IS AND YOU KNOW, PAUL.

THEN YOU DO THE WORK OF MANY PEOPLE IN HERE DOESN'T WORK. MANY PEOPLE YOU ARE. YOU'RE OUT. YOU'RE OUT. MEETING ME AT SEVEN IN THE MORNING, AND YOU'RE. EVERY EVENT HAPPEN OVER THE WEEKEND IN ANY NIGHT. YOU'RE JUST. YOU ARE PHENOMENAL CITY MANAGER, PHENOMENAL STAFF AND EVERYONE NEEDS TO ASSESS MUCH AS I APPRECIATE WHERE WE ARE IN THE TAX RATE. THEY DO REALLY UNDERSTAND THAT THAT'S ACCOMPLISHED. AS WE MOVE FORWARD AS A BEST BEST CITY TO LIVE WITH. LESS STAND LESS FIRE, LESS POLICE FOR CAPITAL. WE'RE DOING THE JOB BETTER THAN AN US WITH LESS. AND IT'S ONLY BECAUSE OF THE TALENT IN THE WORK ETHICS. PEOPLE REALLY NEED TO GRASP THAT, AS THEY APPRECIATE. DESERVES A DEEPER APPRECIATION. JUST A TAX RATE NUMBER. PRISONER OUT OF THE COMMUNITY. FIRE DEPARTMENT, POLICE DEPARTMENT TO ANYBODY AFFECTED BY KOBE 19. TO OUR STAFF TO THE FLOOR FAMILY. YES, IT'S AFFECTING MY CO 19 AT THIS TIME. I WANT TO MENTION. IT'S FOR HIM AND EVERYBODY ELSE IS AFFECTED BEFORE THIS MEETING OUR PRAYERS OUT TO THAT FAMILY. STAY SAFE. YOU HAVE A COUPLE OF ITEMS THAT JUST WANNA VERIFIES

[02:15:03]

PROBABLY LOVE TO HAVE JUST MAYBE WORK SESSION WITH CHIEF TALK ABOUT MENTAL HEALTH. AND I THINK THERE'S MAYBE THIS PERCEPTION OF WHAT THAT ONE POSITION IS. BUT SURELY THAT LEADS TO A DISCUSSION ON MAYBE THERE'S SOME OTHER POSITIONS ANY WAY THAT WE CAN. BETTER SERVE THEM, WHICH MANIFESTS, OF COURSE INTO BETTER SERVING THE COMMUNITY. WE WANTTO JUST WANNA MAKE SURE THAT DISCUSSION WITH CHIEF. WE COULD BRING THAT ON SEPTEMBER 1ST WORK SESSION ON SEPTEMBER 1ST IS ACCEPTABLE TO THE COUNCIL. EVERYBODY GIVES YOU PLENTY OF TIME FOR DELIVERY BEFORE THE ADOPTION OF BUDGET. UH, ANOTHER SMALLER ONE CONSTANTLY ASKED PERCENTAGE.

PENSION FUNDING FOR COUNSEL. THANK YOU. THANK YOU. DIMENSIONS FROM ZERO, I GUESS.

YES, THEY ARE. ALL RIGHT. THIS IS EXTREMELY EXTREMELY BENEFICIAL COURSES. THERE ARE PEOPLE WATCHING. NATIONS OF EUROPE. WE HAVE AN EXECUTIVE SESSION. SO

* This transcript was compiled from uncorrected Closed Captioning.