Jun 08, 2023 City Council Budget Workshop

[00:00:01]

RECOGNITION. MHM. THAT'S JUST THE WAY I DO IT. QUESTION YEAH, QUESTION. LOVELY EVENING,

[CALL TO ORDER]

RELATIONSHIP YOUR BUDGET NEXT TO SCREW YOUR BUDGET PLANNING, INCLUDING THE FOLLOWING GENERAL TOPICS, A RECEIVED PRESENTATIONS FROM HILLTOP SECURITIES TEXAS MUNICIPAL RETIREMENT SYSTEM. AND ENTERPRISE FLEET MANAGEMENT AND DISCUSS TO BE RECEIVED PRESENTATIONS OF PROJECTS, SHORTAGES, FUNDING OPTIONS AND DISCUSS ITEM TWO C DISCUSSION ON JUST THREE YEAR 2022 ACTUALS JUST 2023 ENDED YOUR PROJECTIONS AND TWO D DISCUSSION OF FISCAL YEAR 2024 POTENTIAL BUDGET OUTLET AND HIGHLANDS THAT TURNING THE MEETING OVER TO OUR MANAGER, MR BROWN. MR BROWN, PLEASE. THANK YOU VERY MUCH. MAYOR AND COUNCIL. THANK YOU VERY MUCH FOR BEING HERE THIS EVENING, ESPECIALLY AFTER WEAVING AFTER 10 O'CLOCK TUESDAY . WE GREATLY APPRECIATE YOU BEING HERE. NINE IS ONE OF MANY PRESENTATIONS THAT YOU WILL HAVE OVER THE PAST OVER. EXCUSE ME OVER THE NEXT 6 TO 7 WEEKS. AS YOU KNOW, ARE OUR CITY CHARTER REQUIRES THAT YOU CITY MANAGER PREPARE AND SUBMIT A BUDGET PRIOR TO AUGUST 1ST OF EACH YEAR. AND SOME OF THE PURPOSE OF TONIGHT'S BUDGET WORKSHOP IS TO BEGIN THE PREPARATION OF APPARENTLY FY 24 BUDGET, SO WE'VE GOT A NUMBER OF GUESTS THIS EVENING THAT WILL ALSO BE PRESENTING. NO, WE WANT YOU TO CERTAINLY ASK ANY QUESTIONS THAT YOU MAY HAVE. THIS TERM. I'M GOING TO TURN IT OVER TO JENNIFER JENNIFER WILL BEGIN TO INSTITUTE FOR MR BROWN. LET ME JUST TWO PIECES OF HOUSEKEEPING NUMBER ONE. MR COONS, COUNCIL MEMBER. CRUZ IS NOT PRESENT. BUT HE IS WITH US IN A VIRTUAL MODE . MR COMES. IS THAT CORRECT? SIR DID YOU HEAR ME? MUSIC KNOWLEDGE. W. CHARMING. AND WHILE WE'RE DOING THAT, I WILL NOTE. MR CONTRERAS HAS NOT YET PRESENT. I HAVEN'T HEARD THAT HE IS GOING TO MAKE IT OR NOT PRESENT TIME WE DO HAVE A QUORUM BED. CONTINUE THANK YOU. BROWN ABSOLUTELY. OKAY. EVENING, EVERYONE. SO OBSTACLE OVER AGAIN OUR AGENDA TONIGHT OUR FIRST PRESENTATION THAT WE'RE GOING TO RECEIVE IS FROM JASON HUGHES. HE'S FROM HILLTOP SECURITY. HE'S GONNA STAND UP HERE IN JUST A MOMENT AND HAVE A CONVERSATION WITH US ABOUT DEBT. UM THE SECOND PRESENTATION. WE ARE GOING TO RECEIVE THIS FROM MR ANTHONY MILLS USED FROM TEXAS MYSTICAL RETIREMENT SYSTEM. THE THIRD PRESENTATION. WE WILL RECEIVE THIS JENNIFER BEDROOM.

FROM FROM ENTERPRISE MANAGEMENT , AND THEN THE REMAINDER OF THE EVENING WILL BE TALKING ABOUT OUR BUDGET. SO THAT IS THE FLOW OF EVERYTHING THIS EVENING. SO WITH THAT, I'M GONNA TURN IT

[A. Receive presentations from Hilltop Securities and Texas Municipal Retirement System, and Enterprise Fleet Management, and discuss]

AND THEN I'LL KIND OF DRILL DOWN A LITTLE BIT MORE OF WHAT THAT WOULD LOOK LIKE FOR THE CITY OF DUNCANVILLE. SO AGAIN, UH, PLEASE INTERRUPT ME. ASK QUESTIONS. HAPPY TO ANSWER ANYTHING YOU HAVE. SO LET ME JUST KIND OF START GOING THROUGH FIRST TALKING ABOUT THE DEBT POSITION. SO YOU HAVE TWO ISSUES OUTSTANDING. YOU PAY PRINCIPAL EACH YEAR, SO AFTER THE PAYMENT WAS MADE IN $19.2 MILLION OUTSTANDING, IT'S ALL FIXED RATE. SO IN 2016. WE ACTUALLY

[00:05:08]

VERY STRONG LIQUIDITY POLICIES RUN YOURSELF. THE CITY IN A VERY CONSERVATIVE MANNER VERY STRONG FINANCIALLY, SO THAT CERTAINLY HELPS ELEVATE THAT ALREADY BRINGING INTO THE DOUBLE A LEVEL THAT YOU HAVE HERE, ADEQUATE DEBT AND CONTINGENT LIABILITIES YOU MAY SAY, WELL, ADEQUATE.

THAT SOUNDS TOO. PROBABLY 95% OF MY CLIENTS WHENEVER IT COMES TO THE DECK, CONTINGENT LIABILITY

[00:10:03]

KIND OF UNRESTRICTED FUND BALANCES AVAILABLE. THE OTHER THING, AND ONE THING THAT'S BECOME VERY COMMON AS WE'VE SEEN INCREASES TO COST IS YOU CAN USE THAT TO SUPPLEMENT PROCEEDS TO RIGHT SO YOU MAY HAVE A SITUATION WHERE PROJECT COMES UP BILLION DOLLARS SHORT. YOU HAD THAT MILLION DOLLARS IN $1 CHICKEN CONTRIBUTE TO CAPITAL. THE ONE THING I WOULD SAY CONSIDERATION OF USING THOSE CASH RESERVES. TYPICALLY WHENEVER YOU SEE THE RATING AGENCIES LOWER CREDIT RATING FOR AN ENTITY IT'S BECAUSE THEY'VE DONE THINGS OVER A PERIOD OF TIME. SAID ANOTHER WAY, IT'S NOT TYPICALLY THAT YOU USE YOUR CASH RESERVES. ONE TIME IT'S YOU USE THEM FOR A SERIES OF YEARS AND NOW YOU'RE RESERVE IS AT A POINT WHERE IT'S NOT COMMENSURATE WITH YOUR DOUBLE IN CREDIT. SO THAT'S TYPICALLY WHERE YOU SEE CITIES GET INTO TROUBLE. IF THERE IS SOME KIND OF TROUBLE LIKE THAT, SO JUST SOMETHING TO BE MINDFUL OF THAT GENERALLY KIND OF A ONE TIME USE IF YOU WILL. THE OTHER THING FOR PURCHASES OR IMPROVEMENTS. IN PARTICULAR. IF YOU GO BACK TO 2008 WHENEVER WE SAW WHAT HAPPENED THERE AS FAR AS THE DEPRESSION. I STARTED SEEING TAX VALUES FALLING OURSELVES TAX FALLING, SO CLIENTS WERE DEFERRING. AND SO THAT COULD CERTAINLY HELP US, ESPECIALLY IF THERE'S TIMES OF ECONOMIC STRESS. COUPLE OF THINGS THAT YOU HAVE TO BE MINDFUL OF, IF YOU ARE DEFERRING CERTAIN IMPROVEMENTS TO MEAN THAT YOU DON'T GET TAX BASE INTO THE CITY BECAUSE WHETHER IT'S HOUSING STOCK COMMERCIAL CAN'T COME IN BECAUSE THOSE IMPROVEMENTS AREN'T MADE. OR ARE YOU LOSING SOME TYPE OF ECONOMIC DEVELOPMENT? SO AGAIN, JUST SOMETHING TO BE MINDFUL OF. AND THEN CERTAINLY WHAT WE'VE SEEN.

PROBABLY WHAT OVER THE LAST 3 TO 4 YEARS IS THAT DEFERRAL HAS BECOME MUCH MORE EXPENSIVE, RIGHT? AND AS WE'VE SEEN INFLATION GO, UH YOU KNOW SOMETHING? I HAD A CITY HERE IN THE METROPLEX NEIGHBORHOOD, LOOKING AT A LARGE PROJECT THAT WAS ABOUT $68 MILLION. ABOUT 18 MONTHS LATER. IS 96 MILLION. SO AGAIN, SO BE MINDFUL OF THE LAST ONE IS YOU GO GENERALLY SPEAKING , THIS IS NOT SOMETHING THAT REALLY IS USED AS MUCH ANYMORE BECAUSE OF SENATE BILL TWO, WHEN SOME OF THE OTHER RESTRICTIONS YOU HAVE RAISING REVENUES ON THE MM. NO SIDE OF THE EQUATION. BUT IF YOU DO HAVE KIND OF SMALLER PROJECTS THAT YOU COULD CERTAINLY LOOK AT DOING THAT AS WELL. THAT LAST BULLET POINT I WILL TELL YOU IT'S VERY IMPORTANT TO REIMBURSEMENT

[00:15:02]

GENERALLY SPEAKING, YOU CAN INITIATE ISSUE THAT ON A TAX EXEMPT BASIS, AND ALL THAT SIMPLY MEANS THAT SOMEONE WHO BUYS THAT OR INVEST IN THE CITY OF COMPANY BILL BONDS DOESN'T HAVE TO PAY FEDERAL INCOME TAX ON THE INVESTMENT EARNINGS. IRAN THE INTEREST AREN'T EXPECTING APART FROM THAT, SO THAT ANOTHER WAY THEY'RE WILLING TO ACCEPT A LOWER INTEREST RATE THAN THEY OTHERWISE WOULD AND THEN THAT LAST BULLET POINTS AND ALLOWS YOU TO ACCESS ANOTHER REVENUE STREAM, WHICH IS INTERESTING, SINKING BOND. AND SO THAT INTEREST IN SINKING FUND IS SET UP STRICTLY TO PAY DEBT. CAN'T BE TRANSFERRED OUT INTO THE TEMENOS SIDE OR ANYTHING LIKE THAT. SO IT IS THERE FOR THE REPAYMENT. SO AS FAR AS HE TYPES OF DEBT OBLIGATIONS THAT ARE OUT THERE. THESE ARE THE MOST COMMON THEY'RE CERTAINLY MORE THAN THESE, BUT I WOULD SAY THESE ARE KIND OF FOR MOST COMMON SO GEO BONDS. THEY ARE SUBJECT TO A BOND COLLECTION. CURRENTLY RIGHT NOW IT'S A SIMPLE MAJORITY, I SAY CURRENTLY BECAUSE THE LEGISLATURE CAN CHANGE THAT WHENEVER THEY MEET EVERY TWO YEARS, THEY DIDN'T THIS TIME AROUND, WHICH IS ALMOST DID AND THAT'S CERTAINLY SOMETHING THAT THEY HAVE TRIED TO INCREASE BEYOND THE SIMPLE MAJORITY TO A SUPERMAJORITY. THEY HAVE DONE THINGS LIKE TALK ABOUT JUST HAVING NOVEMBER UNIFORM ELECTION DATE. NO MADE THEY HAVE ALSO TALKED ABOUT WHICH THIS TO ME WOULD BE THE KILLER. UM YOU HAVE A GEO BOTTOM, ACTUALLY, THAT YOU WOULD HAVE TO HAVE A MINIMUM AMOUNT OF PURE REGISTERED VOTERS COME OUT AND VOTE FOR TO BE A BALLOT ELECTION AND I'VE SEEN THAT NUMBER 20% TO 25. AND IF THAT'S YOU WON'T HAVE TO WORRY. YOU WON'T SEE ME ANYMORE LOBBY ON THE JOB, SO THAT IS OKAY, SO THAT IS CERTAINLY SOMETHING THAT HAS BEEN DISCUSSED AGAIN, CURRENTLY AS ITS HANDS SIMPLE MAJORITY MAY AND NOVEMBER UNIFORM ELECTION BUSINESS. ONE THING THAT IS VERY IMPORTANT, AND THIS ACTUALLY CHANGED THIS PAST LED LEGISLATIVE SESSION IF YOU HAVE A BOND ELECTION, AND IT FAILS, YOU CANNOT ISSUES, CERTIFICATES OF OBLIGATION OR TAX NODES FOR THOSE SAME PURPOSES FOR FIVE YEARS, SO USED TO BE THREE YEARS IT WAS JUST C. E. O S. TEXT NOTES GOT ATTITUDE . YOU GOT UP TO FIVE YEARS? CERTAINLY SOMETHING TO KEEP IN MIND. CEO SO WITH CEOS, THERE'S NO PUBLIC VOTE ON THAT. WHAT HAS TO HAPPEN IS THE COUNCIL APPROVES NOTICE OF ATTEMPTS SO THAT JUST INCLUDES NOT TO EXCEED AMOUNTED. INCLUDES THE DATE IN WHICH YOU ANTICIPATE MEETING TO APPROVE THOSE CEOS AND GENERAL LISTING OF THE PROJECTS PRONOUNCE IT IS A 45 DAYS NOTICE . SO WHAT I TELL MY CLIENTS IS WHENEVER YOU THINK ABOUT IT FROM WHENEVER YOU GENERALLY, IT'S ABOUT TWO MONTHS BEFORE YOU SELL THOSE CEOS. IT'S USUALLY ABOUT ANOTHER POSSIBLE CEO FINDS DELIVER. SO THAT'S ABOUT A 90 DAY PROCESS. SO JUST BE MINDFUL OF THAT. AND IT DOES HAVE THERE

[00:20:04]

3.7 BILLION. YOUR CURRENT I N S TAX RATE IS ABOUT 2.5 CENTS. AND THEN I JUST ASSUMED AGAIN.

CONSERVATIVE STRUCTURE, 20 YEAR DEBT SERVICE OR PERCENT PRICING . TODAY WE PROBABLY CLOSE TO 3.5. I JUST CAN'T GET SOME AND THEN, OF COURSE, THESE NUMBERS DO TAKE INTO ACCOUNT THAT I SHOWED YOU THE 2019 BONDS AS WELL AS YOU CAN SEE, THEY'RE KIND OF TWO DIFFERENT WAYS THAT WE CAN APPROACH THIS. THE FIRST TWO ARE BASICALLY SAYING IF YOU WANTED TO INCREASE TO A CERTAIN TAX RATE, WHAT DOES THAT LOOK LIKE? THE LAST ONE SAYS IF YOU NEEDED $10 MILLION IN THIS EXAMPLE WHAT DOES THAT LOOK LIKE? SO CAPACITY VERSUS LOOKING AT ACTUALLY NEEDED HIM OUT. SO AS YOU CAN SEE, THEY'RE GOING UP TO ROUGHLY A LITTLE OVER FIVE SENTENCES TAX RATE THAT PARAMOUNT IS ABOUT 4.8 MILLION. AND THEN IF YOU WERE TO GO UP FIVE CENTS, THAT WOULD BE AN ESTIMATED PAR AMOUNT OF ABOUT 17 POINT. ALMOST 17 MORE 4 MILLION SO AGAIN, VERY CONSERVATIVE, NOT STRUCTURED AT ALL. JUST SIMPLY. HERE'S 20 YEARS. HERE'S LEVEL THAT SERVICE AGAIN THAT LAST ONE IF YOU WERE TO ISSUE FOR $10 MILLION THAT WOULD REQUIRE A TOTAL TAX RATE AGAIN, TAKING INTO ACCOUNT EXISTING THAT JUST OVER SIX CENTS CERTAINLY THIS KIND LEADS INTO OUR NEXT SLIDE.

YES, SIR. INVOLVED WITH THE COUNCIL OF STAFF. WHEN YOU BE LOOKING AT THOSE 2ND AND 3RD BULLETS. NO NEW REVENUE RATE WHEN IT COMES TIME FOR US TO FIX THAT TAX RATE. SO THAT IS ONE OF THE THINGS THAT I WORKING WITH YOUR STAFF. HELP WITH AND PROVIDED SO CERTAINLY WANT. WE WANT TO BE MINDFUL OF THAT. THE I N S TAX RATE. THE NICE THING ABOUT THAT IS YOU DON'T HAVE AS MUCH CONSTRAINT ON AND THE REASON IF YOU THINK ABOUT IT, YOU'RE NO TAX RATE HAS TWO PARTS INVOLVED AS YOU AS A CITY AS A LIVING IN TOO DEEP. AND IT HAS YOUR TAX RATE PAYERS. I N S TAX FREE HISTORY. ENTITIES BALL YOU AS A CITY, YOUR TAXPAYER AND YOUR BONDHOLDERS. AND SO THERE'S CERTAINLY SOMETHING WHENEVER YOU GO OUT TO ISSUE DEBT. YOU TELL YOUR BONDHOLDERS WILL LEVY.

ACCORDINGLY TO MAKE OUR DEBT SERVICE PAYMENT, AND SO THE STATE DOESN'T IMPEDE THAT. SO YOU WERE HOOKED UP SECURITIES IN GENERAL FINANCE BUDGETARY PROCESS. ABSOLUTELY. ABSOLUTELY SERIOUS PART OF ALL, YES. WITHOUT QUESTION. AND THAT DOES LEAVE ME. FIND LAST SLIDE. JUST GO THROUGH AND JUST CERTAINLY I, UH PRESENTED IN FRONT OF A NUMBER OF YOU BEFORE, BUT NOTICE THAT I HAVEN'T AGAIN JASON HUGHES WITH HILLTOP SECURITIES SERVICE FINANCIAL ADVISOR TO THE CITY. UM COUPLE OF THINGS JUST AS FINANCIAL ADVISOR PRODUCER RESPONSIBILITY TO YOU. ALL THAT SIMPLY MEANS IS I HAVE TO PUT YOUR AH NEEDS AND I DON'T MIND RIGHT. I HAVE TO ADVISE YOU SOLELY AS IT RELATES TO YOUR WELL BEING. YOU CAN SEE ADVISORS ON ALL FINANCIAL MATTERS NOT SIMPLY BOND ISH ONES, BUT SPECIAL DISTRICTS OR ZONES TALKED BEFORE ABOUT THE IMPROVEMENT DISTRICT EXPECT TAX INCREMENT REINVESTMENT ZONES. AND THEN ON GENERAL ECONOMIC DEVELOPMENT. OF COURSE, STRUCTURING THE OVERALL FINANCE PLAN AS IT RELATES TO BONDS, BUT ONE OF THE THINGS THAT IN PARTICULAR THAT I'VE BEEN DOING A LOT MORE NOW AND ESPECIALLY WITH THE RATING AGENCIES LOOKING AT PLANNING IS GOING TO CLIENTS AND PUTTING IN PLACE AN ANNUAL SIP AND DOING JUST WHAT WE'RE DOING TONIGHT, WHICH IS KIND OF THIS UPDATE. AND THE NICE THING IS, IT GIVES YOU THE COUNCIL CURRENTLY ABILITY TO SEE THAT ON AN ANNUAL AT LEAST AN ANNUAL

[00:25:02]

AND THEN I DO ALSO WRITE A LOT OF TIMES FINANCIAL POLICIES BEGAN. THOSE ARE TYPICALLY TOWARDS HELPING WITH THE RATING AGENCIES. AND THEN THE LAST THING THAT WE DO IS WE HELP WITH YOUR DISCLOSURE FILING. ALL I SIMPLY MEANS IS WHENEVER YOU ISSUED DEBT YOU TOLD THE ENTITIES WITH PEOPLE THAT BOUGHT YOUR DEBT THAT YOU WOULD UPDATE YOUR FINANCE. FINANCE AND OPERATIONS. INFORMATION ON AN ANNUAL BASIS THIS WITH THAT AND AGAIN, SO I DO WORK DIRECTLY FOR YOU. THE OTHER ENTITY IS YOUR POND COUNCIL. NORTON ROSE FULBRIGHT. MR BROADWAY.

TRANSFIELD IS YOUR BOND COUNSEL . YOU CAN SEE THERE. THEY OPINE ON THE LEGAL MATTERS ON ALL THOSE ITEMS THAT JUST WENT LIKE WHETHER IT'S BONDAGE ONES WITH ECONOMIC DEVELOPMENT. AND SO FORTH. WHENEVER WE ISSUED THAT IN THE STATE OF TEXAS ALL PUBLIC DEBT GOES BEFORE THE TEXAS A G S OFFICE, AND SO THEY MAKE SURE THAT YOU'RE IN CONFORMANCE WITH STATE LAW, SO BOB AND HIS TEAM WILL INTERACT WITH THEM. AND THEN THE OTHER THING AGAIN AS I TALKED ABOUT ISSUE TAX EXEMPT DUTCH BOB IS MAKING SURE THAT WE ADHERE TO FEDERAL TAX LAW SO WE CAN ISSUE THAT LOWER INTEREST RATES. AND THEN, OF COURSE, HE IS DRAFTING ALL THOSE LEGAL PARTICLES. SO THAT IS YOUR TEAM . I KNOW THAT I WENT THROUGH THAT VERY QUICKLY. CERTAINLY BE HAPPY TO ANSWER ANY QUESTIONS.

YOU MAY HAVE MORE DETAIL ON ANYTHING YOU FIND. WE TYPICALLY DO NOT TAKE INPUT FROM CITIZENS.

SOMETHING. CAN YOU PASS ON ONE OF US, AND THEN WE CAN ASK THAT QUESTION. INVESTED THE COUNSELOR. HE WAS SAYING. THE TREE.

ONE THING I MIGHT JUST VERY QUICKLY POINT OUT. I HAD RUN THIS AGAIN BASED ON 20, OR LEVEL BENCH SERVICE, SO COUNCIL WANTED TO SEE OTHER ITEMS. WHETHER IT'S TAX NOTES, WHICH AGAIN ARE THE SEVEN CENTS IF YOU WANT TO SEE DIDN'T AMOUNTS ABSOLUTELY HAPPY TO PROVIDE GOOD MORNING TO MAKE SURE THAT WAS NOT. IT WOULD BE MUCH FARTHER. YOU UNDERSTAND WHAT HE'S ASKING, MR MAN? YOU SUMMARIZE, PLEASE. BASICALLY WHAT IT IS. WHEN THE DEBT RATE INCREASES OF CREATE PRODUCES DOWN THE OPERATIONS TO MAKE THEM THE STATE'S DOING. SO IT CAN THE AGAIN THE REAL GOVERNOR. IS ON YOUR WOMEN, OZONE. RIGHT BECAUSE BASICALLY WHENEVER YOU GO AND SELL THAT ON THE SIDE, YOU'RE TELLING THE INVESTORS THAT YOU WILL LEVY A TAX SUFFICIENT TO PAY THE DEBT OR HAVE ANOTHER LEGALLY AVAILABLE REVENUE STREAM TO PAY. SO YOU HAVE A LITTLE BIT MORE FLEXIBILITY THERE, BUT GENERALLY YOU HAVE SEEN IN PARTICULAR. AS OF LAYERS AND ABILITY TO ASSOCIATE RATES ARE GOING DOWN, SAME OR IN SOME CASES HAVE GONE. OKAY. OTHER QUESTIONS. ALL RIGHT. MADE ONE EXCEPTION, REALLY NOT INCLINED TO TAKE ANOTHER. OH, LET'S GO AHEAD AND PROCEED, AND THEN WE CAN DISCUSS ANYTHING ELSE. OFFSITE. THANK YOU. WHO'S UP NEXT? THANK YOU. MR HUGHES. I

[B. Receive presentations on projects, shortages, and funding options and discuss.]

[00:30:05]

UM IN ADDITION, UM AFTER LOOKING AT THE LIST, YOU'LL SEE HOW MUCH MONEY WE HAVE LEFT OVER THE ARBOR FUNDS THAT CAN BE USED TOWARDS OUR SHORTAGES WITH INFRASTRUCTURE BOND. UM, TYPE OF PROJECTS SO. THE CURRENT PROJECTS. THIS WAY, THIS SPREADSHEET IS HAVE A LIST OF ALL THE OPEN PROSPECTS. THOSE ARE ONES WE HAVE PREVIOUSLY REQUESTED ARE STILL IN MOTION.

UM WHAT WE'VE SPENT LIFE TODAY ON THESE PROJECTS WHAT IS CURRENTLY OBLIGATED ENCUMBERED AND WHAT REMAINING, UM, BALANCE FOR THOSE PARTICULAR PROJECTS. WE HAVE THE BUSINESS FRANCE THAT IS STILL ONGOING. UM GENERATORS , THE H BACK. WE'RE GONNA BE REPLACING THE H BACK AT THE 103 EAST SWEETLAND. OUTDOOR FITNESS EQUIPMENT, SEEING THE OUTDOOR BUSINESS EQUIPMENT AT ARMSTRONG PARK, AND WHAT'S LEFT OF THAT IS GOING TO BE A LITTLE RUN. UM WE HAVE NUMEROUS IT PROJECTS FOR EQUIPPING THE FIRE STATION. SECURITY CAMERAS. A B THINGS LIKE THAT, UM, DOING OUR NETWORK BACK PHONE VIRTUAL. MINT REPLACEMENTS AS WELL AS IMPLEMENTATION RE IMPLEMENTATION OF SOME OF OUR SOFTWARES. I STILL HAVE A FIRE TRUCK BLOCKING APPARATUS THAT IS COMING, UM, WITH THE CITY OF CEDAR HILL. UM THE CITY HALL LOBBY IS YOU SEE OUT THERE AND ALL THE DATA FOR THE CUSTOMER SERVICE ADVOCATES HAS BEEN DONE OUT OF HERE AND STILL HAVE A DOG PARK. FLAT CAMERAS OR SECURITY CAMERAS AND PLEASE. UM SKATER SYSTEM UPGRADES. THIS IS A NEW REQUEST , AND WE WANT TO UPDATE THE SKATER RUMAH SERVERS NETWORK EVERYTHING THAT GOES WITH THE SKATER, WHICH IS VERY IMPORTANT FOR OUR WATER SYSTEM. UM TRAFFIC SERVER UPGRADES. SAME THING WITH OUR TRAFFIC SERVERS AND MOVING THE TRAFFIC. WE HAVE THE SERVICE HERE IN THIS BUILDING. WE WANT THEM DOWN TO THE SERVICE CENTER. FOR OUR TRAFFIC DIVISION. AS WELL AS SOME UPGRADES TO OUR MUNIS, FINANCIAL AND HUMAN CAPITAL MANAGEMENT SYSTEMS. AND LASTLY, TO DO A FITNESS FROM EXPANSION AT A RECREATION CENTER TO GET MORE MEMBERSHIPS AND, UM PATIENTS. WE'VE ALSO COMPLETED QUITE A NUMBER OF PROJECTS. WE HAVE WE HAD TO PRESS THE 22.9 MILLION IN COMPLETED PROJECTS THAT ARE ALREADY DONE. WE ONLY SPENT 2.8 MILLION, SO WE HAVE SOME RESIDUAL BALANCE LEFT OVER.

JUST SO YOU KNOW WHAT SOME OF THOSE COMPLETED PROJECTS ARE UNEMPLOYED, PREMIUM PAY. WE BOUGHT AN AMBULANCE, BODY WORN CAMERAS FOR OUR POLICE DEPARTMENT AS WELL AS DEVELOPMENTAL SERVICES. FIRE MARSHAL. UM S C B A GEAR AND BUNKER GEAR FOR THE FIRE DEPARTMENT, AS WELL AS SOME OTHER RADAR AND TRAFFIC DEVICES FOR PUBLIC SAFETY. SO WHEN WE TAKE ALL OF THAT INTO THE EQUATION THE TOTAL FUNDS AGAIN WITH THAT WE WERE GIVEN FROM THE FEDERAL GOVERNMENT FOR THIS RELIEF PROGRAM WAS 9.6 MILLION. THAT WAS THE TOTAL AMOUNT WE HAVE RECEIVED. WE'VE SPENT A TOTAL OF 3.5 MILLION TO DATE. UM THE REMAINING AMOUNT OF THOSE REQUESTED PROJECTS ALREADY IDENTIFIED IS 3.7 MILLION. SO WHEN WE ADD BACK IN THE RESIDUAL AMOUNTS WHEN WE ADD THE BODY WORN CAMERAS FOR THE POLICE DEPARTMENT, THAT WAS A GRANT AND SO WE ARE GETTING SOME OF THAT FUNDING BACK FROM THAT GRANT. THE TOTAL FUNDS REMAINING THAT WE HAVE YET TO SPECIFY OR YET TO SPEND. 2.5 MILLION. RIGHT? WHAT'S THE DEADLINE? SO WITH OUR FUNDS, WE WERE GIVEN A DEADLINE BY DECEMBER OF 2024. WE HAVE TO OBLIGATE THE FUNDS. WE HAVE TO SPEND ALL THE FUNDS BY DECEMBER OF 2026. AND AGAIN THE AMERICAN RELIEF PROGRAM. THE PURPOSE OF THESE FUNDS WERE TO GO TOWARDS BROADBAND 92 INFRASTRUCTURE. UM, THOSE KINDS OF PROJECTS. SO FLOWING IN FROM THIS AND TALKED ABOUT THE BOMB PROJECTS. AND NOW YOU'VE SEEN A LOT OF THIS, AND WE TALKED ABOUT A LOT OF THIS PROBABLY AT NAUSEAM ABOUT THE BONDS AND WHERE WE'RE OVER AND I'M SORRY. THIS IS REALLY SMALL. SO STARTING WITH THE FIRE STATION. WE ORIGINALLY ALLOCATED 6 MILLION WE'VE IDENTIFIED SOME OTHER FUNDING SOURCES. 878,000 CAME FROM THE SAVINGS OF ANOTHER PROJECT. THAT WE DID A FEW YEARS AGO. THE ROOF ADDITIONALLY, THE FIRE DEPARTMENT IT'S GONNA HAVE SOME OF THEIR FURNITURE MONEY TO GO TOWARDS FURNITURE IN THE NEW STATION. WITH ALL OF THE COSTS WITH ARCHITECTURE, THE ENGINEERING GMP FOR THE CONSTRUCTION. LAND AND ALL THE OTHER ANCILLARY THINGS ARE GOING TO THE FIRE STATION, NETWORK EQUIPMENT, FURNITURE, EVERYTHING. TOTAL ESTIMATE IS 10 MILLION. IMPORTANT 6 MILLION, WHICH LEAVES ABOUT 3.8 MILLION

[00:35:03]

SO FOR THE STREET PORTION OF THE BONDS WE STILL HAVE 1.5 MILLION TO BE USED FOR STREETS. AND THE PARKS PROJECTS. WE HAVE THE ROTARY PARKING LOT THAT WAS DONE RIGHT AWAY. WE HAVE SOME RESIDUAL SAVINGS THERE THAT WAS NOT USED. ARMSTRONG PARK. ALONG WITH THE GRANTS. SO THAT TOTAL PROJECT IS ABOUT 3 $3 MILLION. PAVILION, WHICH IS DONE. THAT COSTS $392,000 SO THERE'S A LITTLE BIT OF RESIDUAL THERE. HARRINGTON PARK WE WERE ABOUT 2.4 MILLION IS WHAT WE EXPECTED . AND THAT'S INCLUDING THE BAZILLION THAT WILL BE BUILT AT HARRINGTON PARK AS WELL. UM THAT PROJECT IS ESTIMATED TO BE ABOUT 5 MILLION. AND THEN WE HAVE THE TRAILS. UM WE HAVE 1 MILLION NOW THAT IS GOING TOWARDS TRAILS AND TRAILS HAVE YET TO BE, UM, IDENTIFIED WHAT SPECIFICALLY THAT MONEY WILL BE USED FOR SO FOR PARKS THAT TOTAL AH TOTAL SHORTAGES ABOUT 2.3. SO PUTTING IT ALL TOGETHER. THE SHORTFALL NOT INCLUDING THE STREET PORTION , BECAUSE WE CAN'T INTERMINGLE THE STREET WITH THE PARKS OR STREET WITH THE FIRE STATION. UM THAT SHORTFALL 6.9 MILLION. SO IF WE THROW THE REMAINING OF THE RP FUNDS FOR TO OFFSET THE COST OF THOSE OVER AGES. 2.5 MILLION . IF YOU REMEMBER WE HAD THIS CONVERSATION BACK LAST YEAR IN JULY, ABOUT THE OPTIONS OF WHAT WE COULD DO FOR FUNDING THE REST OF THE SHORTAGES. UM PASSED A RESOLUTION FROM JULY 1922 THAT THE INTENT IS TO ISSUE THAT THAT WE WOULD PAY FOR FUTURE FUTURE DEBT PROCEEDS. AND SO WE SAID MAXIMUM AMOUNT. TO BE ISSUED 4.7. RIGHT? SO YOU PUT ALL THAT THAT INTENTION TOGETHER. WE HAVE COVERED THE SHORTAGES WITH THE BOND. ESSENTIALLY SAYING THAT WE NOW KNOW WHERE THE TEXAS HEART BROTHERS MADE HIM FOR. FUNDS ARE GOING TO GO. THEY'RE GONNA GO TOWARDS MUSIC. YES, SIR. NOT ONLY GETTING MORE THAN SCHOLARS OR SOME POINT RIGHT? THAT'S CORRECT. I ALREADY KNOW WHERE THAT OUR MONEY IS GOING TO BE OFF AGAIN. NOT SOMETHING WE CAN SPEND RIGHT AWAY, TOO. YES PART REQUEST ONE. FULL BOARD SHADE STRUCTURE. SO WE TALKED ABOUT LAST YEAR. MR STEVENSON MCDOWELL. YEAH OKAY. I LOVE IT. DO YOU HAVE ANY FURTHER QUESTIONS REGARDING THE DEBT? YOU HAVE ANY FURTHER QUESTIONS FOR MR HUGHES REGARDING? UM WE MADE THIS, UH, RESOLUTION.

OBVIOUSLY, WE HAVEN'T MOVED FORWARD WITH IT. SO UM, NOW WE WANT TO MOVE WITH IT AND GET BACK WITH WHAT THAT PROCESS LOOKS LIKE. ANYTHING ELSE? SO NOW WE'RE GOING TO TRANSITION INTO THE TEXAS MUNICIPAL RETIREMENT SYSTEM. HAVE TAUGHT SIEGEL THAT OUR HR DIRECTOR TO GIVE INTRODUCTIONS. GOOD EVENING MAYOR COUNCIL. I WANT TO INTRODUCE TO YOU, ANTHONY MILLS.

HE IS THE DIRECTOR OF CITY SERVICES FOR TEXAS MUNICIPAL RETIREMENT SYSTEM. OTHERWISE TMR S MR MILLS ISN'T GOING TO BE TALKING ABOUT OUR PENSION. BUT TODAY HE'S GOING TO DO A ONE ON ONE. AND GIVE US A LITTLE EDUCATION ON UPDATED SERVICE CREDITS AND COLA'S COST OF LIVING ADJUSTMENTS. AND IF YOU HAVE ANY OTHER QUESTIONS ABOUT TEAM RS, HE IS THE EXPERT. SOME OF THE PASS OUT SO SHORTS FOR YOU, MR. PASSED DOWN POOLS. THANK YOU VERY MUCH. TODD GOOD EVENING, MAYOR COUNCIL POINTED OUT. I'M ANTHONY MILLS, DIRECTOR OF CITY SERVICES OF TMR S. AND IT'S A PLEASURE TO BE HERE THIS EVENING. I KNOW THAT THE CITY OF DUNCANVILLE HAS FOR SEVERAL YEARS NOW STUDY THE PLAN DESIGN THAT YOU CURRENTLY HAVE FOR THE EMPLOYEES. WHO WORK HERE AT THE

[00:40:05]

WE RECOGNIZED THAT THE CITY AND DECISION MAKERS YOU SIT SQUARE IN THE INTERSECTION. TRYING TO FIGURE OUT WHAT IS THE APPROPRIATE LEVEL OF BENEFITS BEFORE THE EMPLOYEES WHO WORK HERE. ALL THE FLOWERS TRYING TO BALANCE WHAT IS ALSO RESPONSIBLE FOR THE TAXPAYING PUBLIC WHO IS PAYING FOR THOSE BENEFITS. I WANT TO MAKE SURE THAT YOU UNDERSTAND THAT THE CURRENT PLAN DESIGN THAT YOU HAVE IN PLACE AND THE CITY IS 99% FUNDED WHEN I SAY THAT I MEAN THAT, LOOKING AT THE ACCRUED ASSETS THAT YOU HAVE ON ACCOUNT. FOR THE BENEFITS THAT YOU'VE COMMITTED TO THE EMPLOYEES WHO PARTICIPATE IN T. M. R S. YOU HAVE 99% OF THE ASSETS OF CREW FOR THOSE COMMITTED BENEFITS. BUT I ALSO WANT TO MAKE SURE THAT YOU UNDERSTAND THAT WHAT'S BEEN STUDIED FOR SEVERAL YEARS NOW, IS IT YOU TO YOUR PEER CITIES? ESPECIALLY HERE IN THE METROPLEX ? THERE ARE CERTAIN DESIGN FEATURES THE UPDATED SERVICE CREDIT AND THE COST OF LIVING ADJUSTMENTS IN PARTICULAR THAT THIS CITY IS LOOKED AT THE FIGURE OUT. SHOULD WE OR COULD WE GET BACK INTO THE BUSINESS OF OFFERING AN UPDATED SERVICE CREDIT TO OUR MEMBERS? CAN WE AFFORD CAN WE A COLA TO THOSE FOLKS WHO HAVE RETIRED FROM THE CITY OF DUNCANVILLE. AND I WANT TO MAKE SURE THAT YOU UNDERSTAND THIS. WHATEVER PLAN DESIGN YOU PUT IN PLACE. AND WHATEVER BENEFITS YOU'VE COMMITTED, ALRIGHT, ACTUARIAL FUNDING POLICY ENSURES THAT THOSE BENEFITS ARE GOING TO BE FUNDED OVER. NOT JUST A REASONABLE BUT IN A AGGRESSIVE AMORTIZATION SCHEDULE. AND I'LL TALK ABOUT THAT. AS WE GET INTO MORE DETAIL. I'LL JUST TELL YOU THAT THE SLIDE DECK THAT I PUT TOGETHER FOR YOU TODAY. I'M GONNA SKIP THROUGH SEVERAL OF THESE SLIDES BECAUSE THE VERY BEGINNING OF THESE SLOTS SAY REALLY NOTHING MORE THAN JUST HOW STRONG TMR S HERE. I THINK THAT OUR RECORD SPEAKS FOR ITSELF FOR THE LAST 75 YEARS, DUNCANVILLE. 55 OF THOSE YEARS AND 927 OTHER CITIES HAVE PARTICIPATED IN OUR PLAN. THE MORE THAN 200,000 ACTIVE MEMBERS OF T. M. R S IN THE 69,000, WHO ARE RETIRED, GROWING A BENEFIT.

HAVE NEVER MISSED. PAYMENT. THEY'VE NEVER MISSED A PAYMENT WERE MORE THAN 89% FUNDED RIGHT AT 90% FUNDED SYSTEM WORKS. DUNCANVILLE IS AT 99. YOU ARE AHEAD OF OUR SYSTEM LIFE AVERAGE , BUT ALL OF OUR CITIES ARE TRENDING TOWARD 100% FUNDED RATIO AGAIN. IT'S BECAUSE OF THE ACTUARIAL FUNDING POLICY THAT WE HAVE IN PLACE AND WE'LL TALK ABOUT THAT AND WHAT IT MEANS TO YOU HERE AT DUNCANVILLE. I WANT TO GO AHEAD AND GET STRAIGHT TO WHAT Y'ALL HAVE ASKED US ABOUT, AND THAT IS LOOKING AT DUNCANVILLE PLAN. I WANT TO MAKE SURE THAT YOU HAVE UNDERSTAND THAT YOU HAVE THE FLEXIBILITY. TO DESIGN THE PLAN AS YOU SEE FIT. WHAT YOU HAVE IN PLACE RIGHT NOW. YOU HAVE CHOSEN FROM A MENU OF OPTIONS AVAILABLE TO YOU. AND THE UPDATED SERVICE CREDIT AND THE COST OF LIVING ADJUSTMENT ARE TWO OF THOSE PROVISIONS THAT YOU CAN CHOOSE TO ADD TO YOUR PLAN. IF YOU DO CHOOSE TO ADD THE UPDATED SERVICE CREDIT AND FOR THE COST OF LIVING ADJUSTMENT. THEN THOSE BENEFITS ARE BEING MODIFIED PERSPECTIVELY. WE'RE LOOKING TO THE FUTURE. NOT RETROACTIVELY. NOW. THAT DOES NOT MEAN AND I WANT TO GET INTO UPDATED SERVICE CREDIT HERE IN JUST A MOMENT. THE UPDATED SERVICE CREDIT MAJOR IS LOOKING RETROACTIVELY, BUT WE'RE TALKING ABOUT A FUTURE BENEFIT FOR YOUR MEMBERS. THE COST OF LIVING ADJUSTMENT. THE ONE THAT STAFF IS RECOMMENDING. FROM MY UNDERSTANDING. THAT ALSO IS LOOKING RETROACTIVELY. IT'S

[00:45:03]

DURING THEIR WORK HISTORY. WE CAN ADD THAT AS TIME PRESSED, NO MONETARY BENEFIT, BUT TIME CREDIT THAT COUNTS TOWARDS VESTING AND TOWARDS RETIREMENT ELIGIBILITY. AND YOU ALSO HAVE THE MILITARY SERVICE CREDIT PROVISION. SOMEONE WHO HAS HAD ACTIVE DUTY MILITARY SERVICE CREDIT AND COMES TO WORK HERE. DUNCANVILLE THAT WAS COUNT THAT ACTIVE DUTY SERVICE UP TO FIVE YEARS OF IT. OR THEY'RE TESTING AND RETIREMENT ELIGIBILITY. THOSE ARE THE OPTIONAL FEATURES THAT YOU HAVE IN YOUR PLAN. BUT WHEN YOU COMPARE DUNCANVILLE YES , COUNSELOR FOR THE PARTS SERVICE CREDITS ONE IT IS. IT IS NOT THE LET ME BACK UP WHEN YOU SAID PRIOR SERVICE CREDIT ARE YOU TALKING THE BULLETS THAT WE HAVE HERE RESTRICTED CHOIR SERVICE CREDIT. THE RESTRICTED PRIOR SERVICE CREDIT CAN COUNT AS MILITARY SERVICE. AND AS A MATTER OF FACT. THIS IS JUST AGAIN THE WHEAT A LITTLE BIT. THIS PARTICULAR PROVISION THESE DAYS. IS PROBABLY WHAT YOUR HR STAFF FOR 80 NEW EMPLOYEE COMES TO WORK HERE. IF THEY HAVE MILITARY SERVICE. I'M CERTAIN THAT TODD IS MOVING THEM TOWARD THE RESTRICTED PRIOR SERVICE CREDIT SO THAT THEY CAN IMMEDIATELY GET THAT TIME CREDIT AND HAVE IT COUNT TOWARDS BESTING AND RETIREMENT ELIGIBILITY BECAUSE THE MILITARY SERVICE CREDIT PROVISION THE EMPLOYEE WOULD HAVE ACTUALLY WORKED HERE FOR FIVE YEARS BEFORE THEY COULD COUNT THAT MILITARY SERVICE. THAT'S NOT THE CASE WITH RESTRICTED PRIOR SERVICE CREDIT. YEAH. NOW, WHEN YOU LOOK AT THE PLAN DESIGN. AND WHEN I LOOK AT THE PIER CITIES THAT YOU HAVE HERE IN THE METROPLEX IN PARTICULAR. AND I THINK THAT'S PROBABLY WHO YOU'RE COMPETING WITH FOR TALENT. THE TWO PROVISIONS THAT YOU DON'T SEE HERE. THE UPDATED SERVICE CREDIT PROVISION AND THE COST OF LIVING ADJUSTMENTS. I CAN'T THINK OF ONE OF YOUR PEER CITIES THAT WOULD NOT HAVE THE UPDATED SERVICE CREDIT. AND FEWER THAN A HANDFUL. WHAT HAVE SOME TYPE OF COST OF LIVING ADJUSTMENT. BUT THAT IS WHAT. THIS COUNCIL IN PAST COUNCILS HAVE CONSIDERED IN THE PAST AND I DID WANT AND I AND I PUT TOGETHER A LITTLE HISTORY FOR YOU SO THAT YOU CAN SEE WHAT HAS HAPPENED OVER THE YEARS THAT COUNCILS HAVE TAKEN SOME ACTION IN THE PAST. I WANT TO MAKE SURE THAT YOU SEE WHERE YOU'VE BEEN AND WHERE YOU HAVE THE OPPORTUNITY TO GO. BEFORE I GET THERE, THOUGH. I DO WANT TO MAKE SURE THAT YOU UNDERSTAND SOMETHING ABOUT THE PLAN ITSELF. DUNCANVILLE IN THE EMPLOYEES WHO WORK HERE BY AND LARGE LIVE HERE. ALSO YOU THINK DON'T LIVE WITHIN THE CITY LIMITS. MOST OF THEM RESIGNED RIGHT HERE IN THE DALLAS FORT WORTH METROPLEX, D M. R S. WE PAID MORE THAN 1.6. BILLION KNOWLEDGE. IN PAYMENTS,

[00:50:01]

THEY STILL ACTUALLY LIVE HERE IN TEXAS, SO THEY'RE NOT IN DFW. THEY ARE HERE IN TEXAS STILL.

RETIREES THEY RECEIVED MORE THAN $8 MILLION IN PAYMENTS. DURING 2022. SO THE MONEY THAT YOU'VE SET ASIDE AND FUNDED TOWARDS A RETIREMENT BENEFIT AND WILL CONTINUE TO FUND YOUR RETIREMENT SENSITIVE. YOU CAN SEE THAT THE TREND IS THOSE FOLKS WHO RETIRE . THEY STAY HERE AND THAT DOLLAR RE CIRCULATES. WITHIN THE ECONOMY HERE IN DFW. AND THE COST OF LIVING ADJUSTMENT. I THINK THAT EVERYBODY UNDERSTANDS THE EFFECT OF INFLATION NOW. FOR A LONG TIME WE WENT WITH VERY STEADY INFLATION, VERY LOW INFLATION. BUT WE DO KNOW THAT OVER THE LAST COUPLE OF YEARS OR SELF WE HAVE SEEN INFLATION LIKE WE HAVEN'T SEEN. IN THE LAST FOUR DECADES. AND THE EFFECT OF INFLATION. ON THE SPENDING POWER OF THOSE 281 FOLKS WHO HAVE RETIRED. IT'S REAL. I ALSO WANT TO MAKE SURE THAT YOU KNOW THAT. THE UPDATED SERVICE CREDIT PROVISION ITSELF. THAT PROVISION RELATES TO ACTIVE EMPLOYEES. WHAT IT DOES. IS IT ALLOWS YOUR EMPLOYEES WHO WORKED HERE FOR LEAST FOUR YEARS IF YOU WERE TO ADOPT IT. IT HAS A FORMULA IN PLACE THAT WE WILL TAKE INTO ACCOUNT THEIR PAST SALARY. AND IT'S REALLY THEIR MOST RECENT SALARY IN MOST CASES. BECAUSE WHAT IT DOES IS IT LOOKS AT THE HIGHEST 36 CONSECUTIVE MONTHS OF SALARY. NOT COUNTING THE MOST RECENT YEAR. SO THINK OF THAT, AS PROBABLY THE LAST FOUR YEARS TAKE OUT THE LAST YEAR, LOOKING AT THOSE HIGH 36 CONSECUTIVE MONTHS. AT THOSE TOGETHER. DIVIDE BY 36. DROP THE HIGHEST AND THE LOWEST. WE'RE TRYING TO MITIGATE AGAINST ANY POSSIBLE PENSION SPIKING. THAT'S WHY WE DO THAT. THOSE 34 MONTHS THAT REMAIN. WE COME UP WITH AN AVERAGE SALARY. AND THEN THE UPDATED SERVICE CREDIT. WHAT IT DOES IS, IT WOULD GO BACK TO THE BEGINNING OF THE MEMBER'S CAREER. THE ACTIVE MEMBERS, CAREER AND HYPOTHETICALLY SUPPOSED. IF SALARY HAD LOOKED MORE LIKE THIS SALARY TODAY. WHAT WOULD THAT MEMBER HAVE CONTRIBUTED TO HIS TMR S AGAIN.

AND WHEN YOU CONSIDER THE MATCHING RATIO THAT'S BEEN IN PLACE, OR THAT IS IN PLACE NOW.

WHAT IF THAT ACCOUNTED GROWN? WITH THE MATCHING RATIO. THAT YOU CURRENTLY HAVE IN PLACE AND IF IT HAD GROWN AT 3% INTEREST PER YEAR INSTEAD OF THE ACTUAL INTEREST THAT WAS EARNED ON IT.

THEN WE CAN CALCULATE THE DIFFERENCE BETWEEN THAT MEMBERS. CURRENT CASH BALANCE ACCOUNT.

VERSUS THAT HYPOTHETICAL CASH BALANCE ACCOUNT. AND WHAT THE UPDATED SERVICE CREDIT DOES IS.

IT HELPS THEM FILL IN THAT DIFFERENCE. WHAT THAT MEANS TO THE MEMBER IS A RETIREMENT BENEFIT THAT WILL BE MORE REFLECTED. UM, THE PLAN DESIGN THAT THEY CURRENTLY HAVE IN PLACE. AND THE SALARY THAT THEY CURRENTLY HAVE IN PLACE. THAT'S THE REAL EFFECT. OF THE UPDATED SERVICE CREDIT. THAT'S FOR THE MEMBER. THE ANNUITY INCREASED PROVISION POLO PROVISIONS. AND I BELIEVE THAT STAFF IS RECOMMENDING THAT YOU WOULD HAVE THOUGHT THE UPDATED SERVICE CREDIT ON AN AD HOC BASIS IN THE COST OF LIVING ADJUSTMENT ON AN AD HOC BASIS. YOU CAN ADOPT THOSE ON A REPEATING BASIS OR RECURRING ORDINANCE. THAT DOESN'T MEAN THAT A FUTURE COUNCIL COULD NOT CHOOSE TO EITHER REDUCE THE PERCENTAGE OR TO TURN IT OFF ALTOGETHER. THAT HAS HAPPENED BEFORE. HERE, DUNCANVILLE. BUT THE COST OF LIVING ADJUSTMENT. WHAT IT DOES IS WE'RE LOOKING AT YOUR RETIREES FOR 281 FOLKS WHO HAVE RETIRED. THOSE WHO HAVE BEEN RETIRED FOR MORE THAN ONE FULL CALENDAR YEAR. IF YOU WERE TO ADD ON AND HOPE, ONE TIME COLON IN JANUARY, BUT WE WOULD DO IS WE WOULD LOOK BACK RETROACTIVELY. TO THE BEGINNING

[00:55:01]

75% OF THE CREDIT. 50% OF THE CREDIT. THOSE ARE THE OPTIONS. WHAT I PROVIDED FOR YOU IN THE STUDIES. THAT WE INCLUDED. AND I WANT YOU TO INSTEAD OF WHAT'S ON THE SCREEN HERE BECAUSE I HAVE STUDIED DUNCANVILLE. INTENSELY OVER THE LAST COUPLE OF YEARS, AND I'D INCLUDED THIS STUDY.

THIS IS NOT THE ONE THAT STAFF IS RECOMMENDING. I AM CLUED ID IN THE PACKET THAT YOU HAVE TODAY. ONE THAT SHOWS IF YOU HAD ADOPTED THIS LAST YEAR. IT IS THE LANDSCAPE DOCUMENT TOWARDS THE FACT ON THE RIGHT HAND SIDE OF YOUR PACKET. IT'S A COMPARISON OF OFTEN BENEFIT DESIGNS. WE'RE TALKING ABOUT HERE. HYPOTHETICALLY, IF YOU HAD ADOPTED THIS LAST YEAR, HMM. AND THE REASON I CAN'T SHOW YOU SEE ACCURATE NUMBERS YET ARE ACTUARY IS STILL LOADING THE DATA JUST ADOPTED LAST WEEK TWO WEEKS AGO. OUR VALUATION RESULTS FROM 2022. SO THE ACTUARY IS STILL LOADING THE DATA AND WE WILL GET JENNIFER AND TODD. YOUR CITY MANAGER. MR BROWN WILL GET THAT INFORMATION BACK TO YOU WHEN WE HAVE DATA LOADED, BUT I DID WANT FOR YOU. FOR THIS PURPOSE. I WANTED YOU TO SEE WHAT IT WOULD'VE LOOKED LIKE HAD YOU MADE THIS CHANGE? LAST YEAR. AND WHEN YOU LOOK AT THE STUDY. IT SHOWS YOU YOUR CURRENT PLAN DESIGN. NOW THESE NUMBERS ARE ACCURATE. FOR 2023. BECAUSE YOUR CURRENT RATE THAT YOU'RE PAYING A 6.19. OF YOUR PAYROLL. THAT'S WHAT YOU CONTRIBUTE TO T. M. R. S. AND SOMEBODY WOULD SAY WHO MAY NOT BE VERY FAMILIAR WITH HOW THIS PLANT WORKS WILL SAY. WELL, WE'RE 7% DEPOSIT PLAN. AND WE ARE TO ONE MATCH. WHY ARE WE NOT CLOSER TO 14? OF OUR PAYROLL. AND THAT'S BECAUSE IT'S AN ACTUARIALLY DETERMINED EMPLOYER CONTRIBUTION RATE THAT YOU NEED TO PAY. AND WHAT I MEAN BY THAT. WHAT I MEAN IS THIS WE'RE LOOKING. ALRIGHT ACTUARIES , A LOOKING EVERY YEAR THAT WE CONDUCT EVALUATION OF YOUR PLAN.

WE'RE LOOKING AT YOUR ENTIRE WORKFORCE. EVERY SINGLE PERSON. AND WE'RE LOOKING AT THEIR AGE.

WE'RE LOOKING AT THEIR SALARY. WE'RE LOOKING AT HOW FAR THEY ARE FROM RETIREMENT. AND THEN THE ACTUARIES CAN MAKE ASSUMPTIONS ABOUT HERE'S WHAT IT TAKES BASED ON THE ASSETS THAT YOU ALREADY HAVE AN ACCOUNT. AND THE LIABILITIES THAT YOU CREATE EACH YEAR TO ADD TO YOUR ACCOUNT. HERE'S WHAT YOU NEED TO DO TO MAKE THE APPROPRIATE PROGRESS. TO FULLY FUND. THAT MEANS TO PUT ON ACCOUNT THE ASSETS THAT YOU NEED TO PAY OUT THE BENEFITS. ON THEIR PLAN DESIGN. THAT YOU'VE GOT IN PLACE. AND JUST SO THAT YOU KNOW THE PLAN DESIGN THAT YOU CURRENTLY HAVE IN PLACE. YOUR TOTAL LIABILITIES COME OUT TO ABOUT $122.2 MILLION AND SOMEBODY WOULD HEAR THAT AND SAY, WELL, THAT SOUNDS LIKE A LOT OF MONEY. WHAT IF YOU DON'T KNOW WHAT THE ASSETS THAT YOU'VE ACCRUED ARE? DON'T TELL YOUR WHOLE WHAT THE ASSETS THAT YOU'VE ACCRUED. $121.5 MILLION. YOU RECRUITED 121.5 MILLION. SO RIGHT THERE AT 122 MILLION

[01:00:12]

AND NO COST OF LIVING ADJUSTMENT. IF YOU WERE TO ADOPT THOSE PROVISIONS THAT WE TALKED ABOUT YOU'RE ADDING NEW LIABILITIES TO YOUR PLAN. IF YOU WERE TO ADOPT THEM ON A REPEATING ORDINANCE, WE WOULD ADVERTISE THOSE NEW LIABILITIES OVER 20 YEARS SCHEDULE. BUT I BELIEVE WHAT STAFF IS RECOMMENDING IS THAT TO LOOK BACK TO GET BACK INTO THE BUSINESS OF UPDATED SERVICE CREDITS. THEN YOU CONSIDER A ONE TIME AT HEART. UPDATED SERVICE CREDIT A ONE TIME AT HOP. WHO AND IF YOU WERE TO DO THAT OPTION TWO YOU CAN SEE AND BOTH OF THOSE ON A ONE TIME BASIS. NOW YOU'RE ADDING ADDITIONAL LIABILITY TO YOUR PLAN. THOSE LIABILITIES ARE ADVERTISED OVER A 12 YEAR FIXED SCHEDULE. WE TYPICALLY USE A 20 YEAR SCHEDULE. WE'RE A LOT MORE AGGRESSIVE. WHEN A CITY ADOPTS AN AD HOC WHY. IF YOU GOT INTO THE HABIT OF COMING BACK EVERY OTHER YEAR OR SO. FEW YEARS AND ADOPTING AN AD HOC PROVISIONS.

HERE'S WHAT YOU'RE MISSING OUT ON. YOU'RE MISSING OUT ON THE OPPORTUNITY. TO ADVANCED FUN.

THOSE FUTURE BENEFITS THAT A FUTURE COUNCIL IS GOING TO COME IN AND ADOPT. WE'RE MAKING ASSUMPTION IF YOU WERE TO ADOPT THIS UPDATED SERVICE CREDIT IN THE COLA THAT YOU'RE GONNA DO THIS ONLY ONCE. SO THE LIABILITY FOR IT, WE SHOW IT ALL TO YOU UP FRONT. AND THEN THAT ADDITIONAL LIABILITY THAT YOU'RE ADDING TO YOUR PLAN A LITTLE OVER $11 MILLION OVER 12 YEAR PERIOD. YOU PAY A LEVEL DOLLARS BENEFIT. TO PAY THAT OFF. IT'S ALMOST CHARISMATIC TO PAY IT OFF OVER THAT 12 YEAR PERIOD THAT LOOKS LIKE ABOUT A MILLION DOLLARS A LITTLE LESS THAN A MILLION DOLLARS. TO PAY IT OFF. BUT WHAT IT'S GOING TO DO IS IT GOING TO TAKE A WALK? AT YOUR 271 FOLKS WHO ARE PAYING INTO T. M. R S. AS AN ACTIVE EMPLOYEE, AND IT'S GOING TO REFRESH. THE RETIREMENT BENEFIT. TO PUT THEM. IN. THE SAME RANGE THAT ARE COMPARABLE EMPLOYEE WHO'S HAD COMPARABLE IMPROVEMENTS IN SALARY OR POSITION IN THE CITY. AT YOUR PEER CITIES. IT'S GOING TO PUT THEIR RETIREMENT BENEFIT. PARK. WITH THE OTHER CITIES HERE IN THE METROPLEX THAT YOU WOULD CALL YOUR FEARS. FOR THE COST OF LIVING ADJUSTMENT. IT'S GOING TO LOOK AT THE 281 FOLKS WHO HAVE RETIRED. AND IT'S GOING TO GO BACK RETROACTIVELY AND SAY. BASED ON WHAT HAS HAPPENED WITH INFLATION. FROM THE TIME THAT YOU'VE RETIRED UNTIL NOW. WE'RE GOING TO ADD THE CUMULATIVE BENEFIT. AT 70% OF THE CHANGE IN THE COST OF LIVING ADJUSTMENT. SINCE OR THE CONSUMER PRICE INDEX THE CHANGE IN CPR SINCE YOU ACTUALLY RETIRED. AGAIN I WANT TO MAKE SURE THAT YOU KEEP IN MIND. I'M SHOWING YOU, 100% AND 70. AND THOSE ARE THE OPTIONS THAT WOULD BASICALLY DO THE CATCH UP. THAT YOU'VE MISSED OUT ON FOR THE LAST SEVERAL YEARS. BUT YOU DO HAVE THE OPTION. FOR THE UPDATED SERVICE CREDIT TO BRANT 75 OR 50% YOU DO HAVE THE OPTION ON THE KOLA THE ANNUITY INCREASE TO ADOPT 50% 30% AND THAT CHANGES THE NUMBERS AND WE WILL HAVE DATA TO BE ABLE TO SHOW YOU A GOOD ESTIMATE OF WHAT THIS WOULD LOOK LIKE. IF YOU WERE TO ADOPTED. I SAY YESTERDAY IT WOULD BE THE ACTUAL NUMBERS. WHAT YOUR RATE WOULD BE IF YOU WERE TO ADOPT THIS TO MAKE IT EFFECTIVE JANUARY OF 2024. BECAUSE BOTH THE UPDATED SERVICE CREDIT AND THE COST OF

[01:05:03]

IT'S AN OLD ARCHAIC PROVISIONS THAT'S IN OUR STATUTE. YOU REMOVE THAT BACK IN 2005. I SAID THAT YOU ADOPTED REPEATING UPDATED SERVICE CREDITS AND CODES. IN JANUARY OF 1992, AND YOU KEPT THEM IN PLACE THROUGH 2008. I ALSO WANT TO MAKE SURE THAT I SAY THIS IN FULL DISCLOSURE OF ANYONE WHO MAY NOT BE AWARE OF IT. WHEN LOOKING BACK HISTORICALLY. IT'S IMPORTANT TO KNOW ABOUT WHAT WAS HAPPENING IN 2008. NOT JUST. IN THE NATIONAL ECONOMY, THE WORLD ECONOMY. T. M R S WE WERE MAKING CHANGES AS WELL. WE WANTED TO PUT OURSELVES ON SOLID GROUND.

AND WHAT WE SAW. WAS THAT THERE WERE CITIES. THAT. THEY'RE RETIRING BASED WAS STARTING TO GROW FASTER. THEN THE EMPLOYEE, BUT. THOSE WOULD HAVE BEEN CITIES THAT HAVE BEEN IN T M. R S. LONG TIME LEGACY CITIES THERE WERE NO LONGER GROWING THE WAY THAT THEY WANT UPON A TIME HALF SEEING THOSE THE RATIO OF ACTIVE TO RETIREES NARROW AND THEY STARTED TO SEE THEIR LIABILITIES TAKE UP. WHAT TMR S DID. IN ADDITION TO CHANGING OUR ACTUARIAL FUNDING A POLICY WE DIVERSIFIED INVESTMENT PORTFOLIO. AND WE CLOSED THE IMMUNIZATIONS GET ALL OF THESE WERE RESPONSIBLE MOVES TO MAKE. AND I STOOD IN FRONT OF COUNCIL AFTER COUNCIL IN 2008 AND TOLD THEM I'LL BE ABLE TO COME BACK TO YOU A DECADE FROM NOW AND TELL YOU THAT YOUR PLAN IS ON TRACK TO BE FULLY FUN. AND WHEN I BEGAN TO SPEAK TO YOU THIS EVENING ONE OF THE THINGS I SAID, I LIKE TO TELL ELECTED OFFICIALS IS THAT REGARDLESS OF YOUR PLAN DESIGN REGARDLESS OF THE BENEFITS THAT YOU'VE COMMITTED TO YOUR EMPLOYEES ARE ACTUARIAL FUNDING POLICY ENSURES THAT YOU'RE GOING TO FULLY FUND THAT BENEFIT. IT WILL BE FULLY FUNDED. YOUR PLAN IS GOING TO MOVE TOWARD 100% FUNDED RATIO. THOSE LIABILITIES WILL BE PAID. AND THAT IS SOMETHING THAT HAS HELD TRUE. AND THAT IS SOMETHING THAT I CAN TELL EACH OF THE 928 CITIES THAT PARTICIPATE IN TMR S, REGARDLESS OF PLAYING DESIGN. YOU ADOPTED IN JANUARY. 2009 UPDATED SERVICE CREDIT YOU DID NOT INCLUDE THE TRANSFER FEATURE. YOU ADOPTED A 70% COLA. BUT YOU ADOPTED THEM ON A ONE TIME AT HOG BASES. AS YOU MIGHT IMAGINE. WHEN T M R S MADE THE CHANGES THAT WE DID. AND WE SAID TO OUR CITIES, IT'S GOING TO BE A BITTER PILL TO SWALLOW. BUT IT'S GOOD MEDICINE. DUNCANVILLE WAS ONE OF THE CITIES THAT SAID IT MAY BE GOOD MEDICINE. BUT WE DON'T KNOW THAT WE CAN DO IT

[01:10:05]

BOTH ON A ONE TIME AD HOC BASIS. AND FROM 2017. 2023. YOUR ACTIVE EMPLOYEES HAVE NOT RECEIVED AN UPDATED SERVICE CREDIT. AND YOUR RETIREES. WHOEVER BROOM THAT NUMBER HAS GROWN SIGNIFICANTLY.

SINCE 2017. THEY HAVE NOT RECEIVED ANY COST OF LIVING ADJUSTMENT. AND THAT IS WHAT YOUR STAFF HAS PRESENTED TO YOU AS A POSSIBLE ADDRESS, TOO. WHAT HAS HAPPENED HISTORICALLY WITH YOUR PLAN. HERE AT THE CITY. NOW THAT REALLY IS WHAT I WANTED TO LAY OUT TO YOU. AND I'LL OPEN IT UP FOR ANY SPECIFIC QUESTIONS THAT YOU'VE GOT. FOUR NUMBERS. BROWN. CONCERNED YOU. OUR PRESENTER HAS MADE COMMENTS SEVERAL TIMES. YEAH, THIS IS WHAT STAFF IS RECOMMENDED. THIS IS THE FIRST TIME THIS HAS BEEN PRESENTED TO US. YOUR STAFF IS MAKING RECOMMENDATIONS OF TMR S.

THEY'RE DOING IT INTERNALLY. YOU, I PRESUME. THIS IS THE FIRST TIME WE AS A COUNCIL UNLESS I'M MISTAKEN, SOMEBODY CORRECTIVES THE FIRST TIME WE AS A COUNCIL HAVE SEEN THIS PRESENTATION IN TERMS OF THIS GENTLEMAN ACTUALLY SAYING THESE ARE RECOMMENDATIONS COMING TO US. THIS IS OUR FIRST BUDGET WORKSHOP. FIRST BUDGET WORKSHOP IS AN OVERVIEW LOOKING TOWARDS WHAT WE HAVE AND WHERE WE'RE GOING IN THE FUTURE FOR POTENTIALITY. VISA FOR THIS INFORMATION WE'VE JUST BEEN PRESENTED IS NOT HIS MOVEMENT POTENTIAL. IT'S ACTUALLY MEETING IS I UNDERSTAND IT, AND I'M NOT SURE WHICH ONE OF THESE OPTIONS YOU SAID 123 AND FOUR AND I'M LOOKING AT HIM. 15 LOOKING AT THESE TWO CHARTS. YOU MADE REFERENCE TO FOUR. YOU MADE REFERENCE TO. I DON'T KNOW WHERE THIS STAFF IS RECOMMENDING. TO THESE AFTER WE SHOULD GO FOR.

AND IN TERMS OF A RECOMMENDATION TO US IN THIS PARTICULAR WORKSHOP. I THINK IT'S VERY PREMATURE. MY PERSONAL OPINION BECAUSE WE'VE NEVER SEEN THIS BEFORE. WE HAVE NEVER HEARD ANY STAFF RECOMMENDATIONS FOR THIS FUTURE COMING BUDGET REGARDS TO T M M. R S SERVICE CREDIT. THIS IS IN DETAIL FOR SOMETHING OF ANOTHER TIME. MAKE AMERICA JUST A MINUTE, OKAY? SO I'M CONCERNED . MY CONCERN IS MADE NOT SPEAKING ON BEHALF OF THE COUNCIL. I'M SPEAKING PERSONALLY, AS I'M HEARING WITH, THIS GENTLEMAN HAS SAID THAT THERE HAS BEEN ACCORDINGLY AND APPROPRIATELY, SOME WORK DONE BY STAFF TO LOOK AT THESE NUMBERS. TO MAKE SOME RECOMMENDATIONS.

WHAT YOU SAY TO COME IN THIS WORKSHOP, THE VERY FIRST ONE OF OUR BUDGET SEASON TO LOOK AT THIS AND SAY STAFF IS NOW COMING TO US WITH THE RECOMMENDATION AND LOOKING AT THESE NUMBERS. WE ARE NOT PREPARED TO EVEN HEAR WHAT STAFF IS RECOMMENDED. MAY I, MAYOR AND. I'LL JUST WANT TO MAKE SURE THAT YOU UNDERSTAND. I HAVE PRESENTED IT HERE AS A STAFF RECOMMENDATION, AND I'VE NEVER HEARD THE STAFF SAY THIS IS THE THIS IS SOMETHING THAT WE'RE RECOMMENDING TO COUNCIL.

THIS IS I WAS TOLD THIS IS AN EDUCATION WORKSHOP. FOR OUR COUNCIL. AND WHAT I CHOSEN TO DO IS TO GIVE THE BEST WAY OUT. I THOUGHT THAT MADE THE MOST SENSE FOR THE COUNCIL TO SEE BECAUSE THERE ARE SO MANY DIFFERENT MIXES AND MATCHES TOTALLY DIFFERENT PICTURE OF EMILY. YOU HAVE REPEATEDLY SAID THE STAFF RECOMMENDATION IS GOING TO BE SO THAT'S IT. THAT'S IT. IT'S A STRAIGHT, NOT EVEN AN INFERENCE OR IMPLICATION THAT IS A STREET. DETERMINATION THAT HAS BEEN THAT WE DIDN'T EVEN KNOW ABOUT UNTIL THIS NIGHT. SO IF YOU HAVE USED THAT IN INCORRECTLY BY SAYING IT. STAFF RECOMMENDATIONS PHRASE THIS ENTIRE PRESENTATION IN TERMS OF YOU'VE LOOKED AT THE CITY OF DUNCANVILLE AND THESE ARE WHAT YOU'RE RECOMMENDING TO STAFF TO CONSIDER THAT I'M OKAY WITH THAT. AND THAT'S EXACTLY HOW IT LIKE COMPLETELY. FIX THE RECORD. WITH THAT.

[01:15:01]

WHAT ARE YOU GOING TO RECOMMEND THE STAFF TO CONSIDER DIRECTLY TO COUNSEL. OKAY MARCH. WE DON'T MAKE RECOMMENDATIONS TO THE CITY. ON WHAT YOU SHOULD ADOPT. BUT WHAT WE DO IS WE GIVE YOU THE INFORMATION. SO THAT YOU CAN FIGURE OUT WHAT WOULD BE APPROPRIATE FOR YOUR CITY. AND WHAT I WANTED TO DO WAS TO LAY OUT FOR YOU. I THOUGHT WHAT WOULD BE THE MOST STRAIGHTFORWARD. OPTIONS THAT THE CITY COULD CONSIDER. HAVING NOT ADOPTED. SERVICE CREDITS OR COLA'S SINCE 2017. AND THAT'S GOING THROUGH SHOWING YOU THE AD HOC OPTIONS. THE ONE TIME MR BROWN OF THE STASH RESPONSIBILITY TO EVALUATE THESE OPTIONS WORKING INTO OUR FUTURE BUDGET AND MAKE A RECOMMENDATION COUNCIL IN TERMS OF WHICH OF THESE OPTIONS ARE FAIRLY WE SHOULD ADOPT. I UNDERSTAND ALRIGHT. CORRECT. THIS IS AN OPPORTUNITY TO EDUCATE THE COUNCIL ABOUT ALL THIS. YEAH, THAT'S THE PURPOSE OF THE ASKING . MR ASKED ME TO COME. AND SO WE STILL GOT A LOT OF INFORMATION TO PRESENT THE COUNSELOR IN ORDER TO FOR THE COUNCIL FULLY UNDERSTAND WHAT WE HAVE. WHEN WE ASKED FOR SOMETHING WE WANTED YOU TO UNDERSTAND THE FACT THAT HE HAS RE CHARACTERIZED HIS PRESENTATION. MAKES A BIG DIFFERENCE. RATHER THAN SAYING STAFF RECOMMENDED SKIP LIKE TWO STEPS TO COME TO COUNCIL. REALLY THIS IS YOUR ANALYSIS GIVING TO OUR STAFF. FOR THEM TO THAT'S RIGHT, AND THERE'S A LOT FOR THEM TO CHEW ON, STARTING WITH THE B AD HOC OPTIONS, I THINK IS THE MOST GREAT FOREIGN FOR YOU, ESPECIALLY IF YOU'RE UNINITIATED AND WHAT THESE OPTIONS ACTUALLY ME HAPPIER NOW THAN IT WAS. OKAY, GOOD. GOOD YOU UNDERSTAND ? COMPLETELY GETTING ABSOLUTELY GET IT. AND AGAIN. COME QUICK FOR THE RECORD. THAT. CAME FROM ME, NOT FROM ANYONE ON YOUR STAFF. QUESTIONS. IT'S VERY FRUITY COUPLE OF STATEMENTS AND JUST A COUPLE OF THOUGHTS. I DO REMEMBER AT LEAST ON TWO OCCASIONS. FORMER CITY MANAGER WEEK SO SHE BROUGHT IT UP BECAUSE SHE TALKED ABOUT GETTING A PRESENTATION FOR US TO UNDERSTAND THE RMS UPDATED SERVICE CREDITS AND ALL THAT. I DO LOVE. A COUPLE OF TIMES AND I KNOW I ASKED HER TO GET SOMEONE IN TO GIVE US A BRIEFING THE COURSE YOU'RE NOT HEARING I'M GLAD YOU'RE HERE. SO I GOT A COUPLE OF STATEMENTS YOU WANTED. IN TODAY'S TIME. PRETTY ATTENTION, HUGE THING. A LOT OF TIMES YOU CAN'T GET THE MONEY, BUT YOU CAN GET THE BENEFITS

[01:20:01]

SO I'M GONNA ASK YOU TO WEIGH IN HEAVILY ON THAT. WHAT 200% AGREEMENT OF THE HAT HA! THE COLA AND REPEATED. CONTRIBUTIONS FOR US. BUT AGAIN, MY BIGGEST THING IS ON A FIXED INCOME.

RETIRED ISLAND NOW ONLY A MONTH OLD, BUT I'M REALIZING WOW. HAD THE COLA DID NOT CHANGE MY PENSION. THREE TIMES, I WOULD HAVE BEEN AN OFTEN A LOT BETTER POSITION THAN I AM ABOUT WHICH I'M NOT IN A BAD ONE, BUT IT COULD HAVE BEEN BETTER. SO THAT'S THAT'S JUST MY STATEMENT TO MAKE SURE I GOT THAT AND MY FALSE KIND OF IN LINE WITH WHAT? MR I WOULD SAY THAT AS WELL.

WHICH WOULD YOU TELL US HOW MANY CITIES DON'T HAVE UPDATED SERVICE? ABOUT 70% OF OUR MEMBERS ARE COVERED. BUYING UPDATED SERVICE CREDIT MOST OF THE CITIES THAT DON'T HAVE UPDATED SERVICE CREDITS ARE NEWER TMR S MOST OF THEM ARE BASIC 5% DEPOSIT 1 TO 1 MATCH CITIES. MOST OF THEM ARE CITIES WITH FEWER THAN 20 EMPLOYEES. I CANNOT THINK OF ONE CITY WITH MORE THAN 100 EMPLOYEES THAT THAT YOU WOULD COMPARE YOURSELF TO THAT DOES NOT HAVE UPDATE CONCERNS. CREDIT I CAN'T THINK OF LESS THAN A HANDFUL. THAT WOULDN'T HAVE A KOA AND I'VE BEEN I DIDN'T GIVE THEM TO YOU. FLOWER MOUND IS ONE GARLAND IS ONE COLLEYVILLE IS ONE THOSE ARE THE CITIES THAT COME TO MIND. IMMEDIATELY AND I DON'T KNOW IF YOU CALL THOSE PEER CITIES OR NOT. WHAT TIME DO DO YOU BECOME A REPEATING SO LIKE IF I RECALL CORRECTLY, IT'S LIKE EVERY FIVE YEARS. REMEMBER WHAT HAPPENED. I MENTIONED TO YOU THAT WERE PRETTY AGGRESSIVE. WHEN A CITY ADOPTING THAT HOP IF THE CITY CAME BACK AND ADOPTED THAT AGAIN WITHIN A FIVE YEAR WINDOW. THE GAS BE REQUIREMENTS AND YOUR FINANCE DIRECTOR IS A BIT MORE FAMILIAR WITH THAT PROBABLY THAN ANYBODY ELSE IN THE ROOM. WE HAVE TO SHOW THAT AS SUBSTANTIVELY AUTOMATIC OR REPEATING ON YOUR FINANCIAL STATEMENT, EVEN THOUGH YOU DON'T HAVE IT ON A REPEATING ORDINANCE. BECAUSE THE WAY THAT IT'S LOOKED AT IS THAT IS A BENEFITS THAT YOU'RE CONTINUALLY GIVEN. YET YOU'RE NOT SETTING US AT THE MONEY TODAY TO EARN THE INTEREST ON TO START TO GROW THE ASSET TO PAY FOR THOSE BENEFITS ON THE SCHEDULE THAT WE WOULD NORMALLY HAVE YOU. THANK YOU. I APPRECIATE YOUR PRESENTATION. HAD YOU KNOW, LOOKING AT THIS AND UNDERSTANDING NOW WE'RE THIS IS COMING FROM IN TERMS OF HOW IT IS GOING TO BE INCORPORATED INTO THE OVERALL BUDGET ALBUMS. THIS IS WHAT WE AS A COUNCIL NEED TO CONSIDER VERY DEEPLY HEAVILY. YES. WE UNDERSTAND PEOPLE LIKE GETTING A COLA FOR THE PAST MANY YEARS, 17. DO WE COUNSEL HAVE BOTH A MORAL AND ETHICAL OBLIGATION TO EXAMINE THAT IN SOME DETAIL AND HOW IT COMES INTO THE FINANCIAL ASPECTS OF WORKING WITH AFFORDABILITY. AND I REMEMBER THIS COMING UP IN THE PAST AND THE NEW INDIVIDUAL SAT IN YOUR CHAIR. PREDECESSORS. BECAUSE ONE OF THE ONES THAT REALLY HARD 17. TO UNDERSTAND THAT THE AFFORDABILITY ASPECT OF IT WAS THE AREA. WE DID NOT SEE THAT THERE'S A POSSIBILITY THAT WHERE EXAMINATION OF THIS ISSUE THE OPTIONS THAT ARE PRESENTED TO US AND WE CAN'T HAVE THAT AFFORDABILITY NOW AND I SAID HEARING OF KNOWING WHAT THIS COUNCIL FOR OUR 281 RETIREES ARE NOT DONE FOR 201 RETIREMENTS. I'M FEELING THAT BURDEN, THOUGH MORAL RESPONSIBILITY AND OBLIGATION. SO NOW IT'S GONNA BE WHERE DOES IT COME IN? PLAY THIS SO IT'S AFFORDABLE FOR OUR CITY.

SOUNDS GOOD. I THINK WE'RE ALL LOOKING FORWARD TO HEARING THAT FROM OUR STAFF CONCERNED, PRESENTED THIS LINE ITEM. I WAS GOING TO BE VERY MUCH APPRECIATE. YES, SIR. ANY OTHER

[01:25:01]

COST OF LIVING ADJUSTMENTS. AND HERE IN MY BRAIN. I'VE GOT TO FIX THIS. I WAS JUST ABOUT TO SAY. STEP RIGHT STAFF HADN'T RECOMMENDED ANYTHING, OKAY? IF DUNCANVILLE WERE TO COME BACK IN , AND I STOPPED A REPEATING IT WOULD ALLOW THE CITY TO ADOPT IT WITHOUT THE RETROACTIVE CALCULATION. AND THAT MEANS THAT THOSE FOLKS WHO'VE BEEN RETIRED FOR LONGEST THEY MISS OUT ON THAT CUMULATIVE EFFECT, BUT IT MEANS IT'S A MORE AFFORDABLE OPTION FOR THE CITY. BUT I WON'T BE REAL CLEAR ON SOMETHING. THE REPEATING COLA'S. AND YOU, YOU'LL SEE IT. IT'S SPELLED OUT IN SOME OF THE DEMOS THAT WERE IN THE PRESENTATION. A REPEATING COLA. IT IS EXPENSIVE, AND IT'S EXPENSIVE BECAUSE TMR S WANTS YOU TO DO. IS JUST LIKE YOU FUND YOUR BASE RETIREMENT BENEFIT WHERE YOU'RE AT A 99% FUNDED. WE WANT YOU TO BE 100% FUNDED FOR THE COLORS THAT YOU'RE COMMITTED TO. IF YOU HAVEN'T DONE A REPEATING ORDINANCE SO IT'S THE FUTURE COLA'S THAT COST WHAT THEY COST. AND THAT'S WHERE THAT REAL COST IN, AND WE'RE NOT TALKING ABOUT FUTURE COLA'S JUST FOR YOUR CURRENT RETIREES. WE'RE LOOKING AT 271, WHO ARE CURRENTLY WORKING IN THE 281, WHO ARE ALREADY RETIRED. AND WE'RE FIGURING OUT WHAT WOULD IT TAKE TODAY FOR THE CITY TO SET ASIDE AN INTEREST OWN GROW YOUR ASSETS SO THAT WHEN THEY GET TO THE FINISH LINE YOU FULLY FUNDED, NOT JUST THE BASE. RETIREMENT BENEFIT, BUT THE COST OF LIVING IS WHEN IT TAKES AWAY THAT RETROACTIVE. AND WE'LL ALSO HAVE THE THAT DATA THAT WE CAN RUN FOR YOU. LATER THIS SUMMER.

THAT'S RIGHT. YEAH, THANK YOU. MAXIMIZING THE JUST ONE MOMENT . MR TOD'S EAGLES GONNA COME UP IN HERE QUICK GOING INTO TALKING

[C. Discussion on FY 2022 actuals and FY 2023 end of year projections.]

[01:30:01]

ESSENTIALLY WITH THAT IS IF RETIREE IS COLLECTING PENSIONS SHOULD PASS THEIR BENEFICIARY WITH RECEIVE A LUMP SUM. AND THEN ALSO SOCIAL SECURITY. WE JUST WANTED TO SHOW YOU THAT WE DO PARTICIPATE IN SECURITY. SO OUR EMPLOYEES 6.2% TAKEN OUT SECURITY AND WE PAY HIM 6.2% SOME CITIES DO NOT PARTICIPATE IN IT, BUT WE DO. ANY QUESTIONS ON THIS LINE. SO WE RECENTLY INTERIM CITY MANAGER. BROWN RECENTLY RECEIVED A LETTER FROM ONE OF OUR RETIREES. AND WE PUT THIS IN HERE FOR YOU TO READ. WE'RE NOT GOING TO SAY WHO WAS NOT GOING TO GO OVER THE LETTER.

BUT THIS REINFORCES THE FACT THAT OUR RETIREES, SOME ARE FIXED INCOMES AND ARE STRUGGLING TO KEEP UP WITH THE COST OF LIVING OUT THERE. SO THIS LETTER IS MORE FODDER FOR YOU, IF YOU WILL, FOR WHY IT MAY BE IMPORTANT TO CONSIDER ADOPTING WHICH WE CAN TALK ABOUT THE FUTURE PRESENTATIONS. OKAY SO GETTING BACK TO OUR COMPENSATION STUDY. DANA WAS BROUGHT TO YOU EARLIER THIS YEAR IF YOU RECALL COUNCIL DID AGREE TO ADOPT PHASE ONE OF THE RESULTS OF THE STUDY.

I'M NOT GOING TO SHOW YOU HOW THAT IMPACTS ALL EMPLOYEES WERE JUST FOCUSING ON POLICE AND FIRE BECAUSE THEY'RE SUCH CRITICAL POSITIONS AND WE REALLY ARE STRUGGLING TO KEEP UP WITH RECRUITING. ATTRACTING AND RECRUITING POLICE OFFICERS AND FIREFIGHTERS AT THE ENTRY LEVEL.

SO WE WANTED TO SHOW YOU AS A MARCH 1ST WHEN WE IMPLEMENTED AND WHERE WE ARE RIGHT NOW IN JUNE PHASE, ONE OF THE OF THE COMP STUDY WITH OUR 14 BENCHMARK CITIES WHERE WE STAND RANK WISE FROM ENTRY LEVEL POLICE OFFICER COMING IN YEAR ONE. AND YOU CAN SEE THERE'S A LOT OF DATA ON HERE. VANESSA BOTTOM WE ARE RANKED 12 12 OUT OF 15 15, INCLUDING US. AND THEN THE BEST SOUTHWEST. WE ARE THIRD OUT OF FOUR. TYPICALLY WE HAVE ALWAYS BEEN SECOND OUT OF FOUR, STRIVE FOR THE SECOND. BUT WE HAVE SLIPPED TO THIRD. NO FOR NOW. I WANT TO KEEP I WANT TO POINT OUT TO YOU THAT CEDAR HILL AND SOTO RECENTLY INCREASED THEIR THEIR COMPENSATION FOR THEIR POLICE AND FIRE. ENDURANCE 75 5 PROCEDURE HILL 75,000 PER DIS OTO, SO WE HAVE KIND OF FALLEN BACK A LITTLE BIT WITHIN THE BEST SOUTHWEST, EVEN WITH THE IMPLEMENTATION OF PHASE ONE.

ROBERT, DID YOU WANT TO HAVE IT? ANY QUESTIONS ON THIS SLIDE. SO THAT'S POLICE OFFICER QUESTION.

SURE BUT THEY'RE ALSO COMPENSATION IS ALSO BONUSES AND INCLUDED AS WELL. WE DON'T OFFER BONUSES. WE DON'T MEAN OR OTHERS TO THESE OFFERING THAT AS WELL THAT I DON'T KNOW WHAT THAT'S NOT SOMETHING THAT WE'VE ASKED, BUT I CAN CERTAINLY REACH OUT TO THE BENCHMARKS MARVEL EXACTLY WHICH ONE WE DO OFFER FOR, UM I THINK IT'S POLICE DOES DO A UM, ONCE THEY FINISH THEIR FIELD TRAINING, THEY DO GET A BONUS. SO THEY HAVE TO COME ON GO THROUGH ACADEMY AND WHEN THEY GET OFF THE FIELD TO FINISH THEIR TRAINING, THEY NEED TO GET A BONUS. BUT IF YOU WANT, I CAN FIND OUT WHAT THE OTHER CITIES STICKING WITH POLICE OFFICER IF WE WOULD GO THROUGH WITH PHASE TWO OF THE RESULTS FROM THE COPS STUDY POLICE OFFICER WITH US WE WOULD JUMP OFF THE FIRST YEAR RATE TO 67,000. YOU CAN SEE THAT DROPS US DOWN OR MAKES US A LITTLE BIT MORE COMPETITIVE IN NUMBER 11 OUT OF 15 GLOBALLY. BUT WE'RE STILL AT NUMBER THREE OUT OF FOUR FOR THE BEST SOUTHWEST SO REALLY, BECAUSE THEY MADE SOME CHANGES. IT DOESN'T REALLY IT'S NOT GOING TO BENEFIT US AND WE DON'T KNOW YET WITH ALL THESE OTHER CITIES ARE GOING TO DO. THIS IS JUST WHAT THE DATA THAT WE HAVE RIGHT NOW. SO AGAIN, KEEPING IN MIND WE WANT TO ATTRACT AND RETAIN THESE QUALITY, YOU KNOW, PERSPECTIVE AND THEN BECOMING POLICE OFFICERS AS THEY MOVE THROUGH OUR RINGS. WE HAVE A GREAT CHALLENGE AHEAD OF US. FOR FIREFIGHTER. UM AS OF MARCH 1ST

[01:35:07]

I'M GONNA MOVING TO ANOTHER VERY INTERESTING AND, UM, AREA WHICH IS MEDICAL HEALTH INSURANCE, AS WE KNOW SKYROCKETING COSTS FOR INSURANCE. PRIOR TO THIS YEAR. WE HAD THREE CONSECUTIVE YEARS WHERE OUR COSTS GO UP, AND IN FACT, LAST YEAR WE HAD TWO OR 3% REDUCTION. COVID HELPED US IN THAT MATTER. PEOPLE WEREN'T GOING TO THEIR POSITIONS AND THEIR DOCTORS AS MUCH OR HAVING ELECTRIC SURGERIES. UM BUT YET AGAIN THIS YEAR WE'RE GETTING 2% REDUCTION IN OUR HEALTHCARE. SO BETWEEN OUR WELLNESS INITIATIVES PEEPING PEOPLE BEING MORE MINDFUL ABOUT COST. THE BENEFIT OF THAT SO TO SPEAK, AND IT'S ABOUT $55,000 SAVINGS THAT WE'RE GOING TO SEE THE CITY. WHICH MEANS OUR EMPLOYEES RATES FROM THEIR PAYROLL WILL NOT CHANGE IN THEM THIS YEAR. KEEPING THAT STACK WHICH PRETTY MUCH IS THAT . ANY QUESTIONS FOR ME? THAT WAS MY BRIEF PRESENTATION. ONE QUESTION. I GUESS, SEGAL THE NUMBERS SINCE YOU'RE SHOWING US POLICE AND FIRE THIS IS. IS IT STAFFS INTENTION TO BRING THESE NUMBERS FORWARD FOR APPROVAL FOR COUNCIL DURING THE BUDGET SEASON OR THEY'RE GOING TO BE INCLUDED SUMMER IN OUR BUDGET ANNOUNCED. PHASE TWO IMPLEMENTATION. YES, AND IT'S GOING TO EXPLAIN TO US AS COUNCIL MEMBERS AFFORDABILITY OF DOING SO CORRECT NOT SO MUCH WHERE WE RANK, BUT WHAT SUPPORT CORRECT THAT IS CORRECT. SURE THAT WE SEE THESE NUMBERS. WE APPRECIATE BEING EXPOSED TO THEM AT THIS POINT, THE BUDGET PROCESS. BUT SEEING MUSIC CORPORATE INTO THE ACTUAL BUDGET LATER DATE, IT'S GOING TO BE THE MOST IMPORTANT THAT IS CORRECT.

AND JUST FOR YOUR EDIFICATION. PHASE TWO IS NOT ONLY FOR POLICE AND FIRE, BUT I THINK IT WAS RECOMMENDED THAT A 2% COST OF LIVING FOR ALL NON CIVIL SERVICE AND TO LOOK AT THE PART TIME HOURLY RATES TO TRY TO BRING THEM UP TO $15 PER HOUR WHERE WE COULD UM, JENNIFER AND I HAVE BEEN LOOKING AT A LOT OF THOSE NUMBERS THAT YOU'RE GOING TO GET ALL OF THIS BLOCK BEFORE YOU FOR CONSIDERATION. PUT YOU ON THE HOT SEAT IRONIC SO YOU DON'T HAVE TO WOULD YOU SPECULATE TODAY AT THIS MOMENT OF WHAT YOU WERE PROPOSING TO FACE IS GOING TO BE IMPORTANT. IF YOU DON'T WANT TO ANSWER THAT, BECAUSE WE'RE NOT SURE YET NOT SAYING THAT. I DON'T KNOW ALL THE DATA WITH THE REVENUE GENERATION WHAT OTHER COSTS WOULD BE SO I CAN'T REALLY GIVE YOU THAT FINANCIAL.

THAT'S ONE FOR TWO GENERAL. SORRY, JENNIFER. ANSWER YOU FEEL THAT BUMP? DO YOU FEEL LIKE YOU NEED A BREAK REAL QUICK. WE DO HAVE ONE MORE THIRD PARTY PERSON HERE TO GIVE US A PRESENTATION BEFORE WE'RE KIND OF GETTING TO THE QUICKNESS AND BOLTS OF THE BUDGET. INTRODUCE YOU. JENNIFER BERTRAND. THANK YOU. MANAGEMENT TO TALK TO US ABOUT POTENTIAL PROGRAM. I PROMISE FRATERNITIES POSSIBLE, BUT IT'S HARD TO GET THE LAST ONE. BUT MAYOR COUNCIL THANK YOU FOR YOUR TIME TODAY.

UM I'M JENNIFER BERTRAM WITH ENTERPRISE FLEET MANAGEMENT FOR 14 YEARS AND BEEN LUCKY TO BE IN OUR FLEET DIVISION. WHICH FOLKS DON'T KNOW ABOUT, UM, BECAUSE WE'RE GOING DIVISION DOESN'T ADVERTISER FOR 12 YEARS, AND SO WHAT WE'RE GOING TO GO OVER TODAY ESSENTIALLY, IS CONCEPTUALLY. WHAT IS ENTERPRISE DO WITH GOVERNMENT ENTITIES? HOW CAN WE HELP AS RELATES TO THE FLEET OF VEHICLES THAT YOU GUYS ARE OPERATING TODAY? HOW DOES THAT HELP US FROM CAPITAL AND OPERATING COSTS STANDPOINT, AND WHAT ARE SOME OF THE OPERATIONAL BENEFITS AS WELL? SO TODAY, I SEE OKAY. TODAY WE'RE GONNA TALK ABOUT A LITTLE BIT ABOUT EACH OF THESE AREAS HERE RELATES TO THE WHOLE LIFE CYCLE. ONE THING I WANT TO POINT OUT REAL QUICK AS IT RELATES TO THE ACQUISITION OF YOU. YOU'RE BUYING POWER IS THE GOVERNMENT ENTITY STAYS THE SAME REGARDLESS OF WHETHER WE'RE WORKING WITHDRAWAL. YOU'RE BUYING. YOU'RE BUYING BOARD STATE CONTRACT. IT'S ALL BASED ON END USERS SO THAT PEACE WON'T CHANGE FROM A DO DILIGENCE STANDPOINT, THAT'S ALL GOING TO STAY THE SAME TODAY WE'RE GONNA TALK A LITTLE BIT ABOUT RELIGIOUS TECH STANDPOINT SOME OF THE, UM, OPERATIONAL BENEFIT OF US BEING ABLE TO HELP WITH PUPPETS AND SOME OF THE ADMINISTRATIVE BURDEN WE CAN TAKE OFF OF STAFF. WE'RE GONNA TALK A LOT ABOUT OPERATING COSTS . WHAT HAPPENS TO OPERATING EXPENSES RELATES TO VEHICLES OVER ITS LIFE? WHAT ARE SOME

[01:40:01]

YOU'RE GONNA BE SICK OF ME TALKING ABOUT RECENT OVERTIME, BUT ENTERPRISE, YOU CAN SEE THERE IN THE MIDDLE OF ANYBODY NEEDS TO RENT A CAR AFTER THE HILL TODAY. JUST LET ME KNOW. OH THAT'S OUR PARENT COMPANY. ENTERPRISE. RENT A CAR. SO ENTERPRISE HOLDINGS COLLECTIVE WE ACTUALLY OWNS AND OPERATES THE LARGEST FLEET IN THE WORLD. WE OWN 1.9 MILLION VEHICLES, SO THAT MAKES US THE LARGEST PURCHASER VEHICLES AND THE LARGEST RESELLER OF VEHICLES, UM , OF ANYBODY ELSE. SO REALLY, WHAT WERE THESE ARE SOME OF THE FOLKS THAT WE'RE WORKING WITH TODAY? I WAS LOOKING AT YOUR COUNTERPARTS IN YOUR OTHER PRESENTATION TO HATCH. HE WAS ON THERE. UM BEDFORD WAS ON THERE. THAT'S ONE OF OUR CLIENTS. THERE WAS A COUPLE OTHERS THAT WERE ON THERE WHEREVER THEY ARE ON THE SCREEN. BUT WHAT'S REALLY INTERESTING ABOUT THE CLIENTS THAT WE'RE WORKING WITH TODAY? REALLY DIFFERENT, RIGHT? WHEN WE FIRST STARTED WORKING WITH THEM, THEY HAVE DIFFERENT PHILOSOPHIES ON ONE TO REPLACE THE FLEET WHAT THEIR BUDGETS WERE SOMEHOW AN INTERNAL REPLACEMENT FUND BUILT UP. SOME HAD NOTHING, UM, BUILT UP AND SO WHEN YOU LOOK AT REALLY, FROM A COMMONALITY STANDPOINT, THOUGH, THIS ACTUALLY COMES FROM THE TEXAS STATE PAGE CITIES, COUNTIES, UNIVERSITIES AND SCHOOL DISTRICTS IN TEXAS, ON AVERAGE, RUN THEIR VEHICLES FOR NINE YEARS OR LONGER. THOUGHT PRICES GENERALLY IS ON THE ASSET, ESPECIALLY FOR NON EMERGENCY RESPONSE VEHICLES. RIGHT LET'S RUN THE OFFICE AS LONG AS WE CAN RIGHT TO GET ARE USEFUL LIFE OUT OF IT. THAT'S USUALLY THE WASABI. UM AND IT'S USUALLY BECAUSE YOU KNOW, IT'S THE CAPITAL BUDGET THAT'S DICTATING THE REPLACEMENT SCHEDULE RIGHT WHERE THIS IS WHAT WE'VE GOT THIS YEAR. HERE'S WHAT WE'RE GONNA GET TO REPLACE, VERSUS THE OPPOSITE OF THAT IS DETERMINING THE LOWEST COST OF OWNERSHIP TO REPLACE AN ASSET FOR STARTERS, COSTING US MORE AND ALIGNING THE CAPITAL BUDGET WITH THE PLAN. SO THIS IS A MICRO VIEW OF JUST ONE UNIT, RIGHT? BLUE SECTION HERE REPRESENT YOUR DEPRECIATION, WHICH IS ESSENTIALLY THE ACQUISITION LIST THE RESALE AT THE END. IT'S A GOOD CHUNK OF THE PIECE OF PIE IF YOU WILL OF YOUR TOTAL BUDGET, BUT YOUR OPERATING COSTS REPRESENTS MORE LIKE 60 TO 70% OF THE SPEND. SO WHEN YOU LOOK AT FROM A MACRO STANDPOINT. THE SAME THING. YOU'LL SEE THAT YOUR TOTAL CAPITAL BUDGET REPRESENTS SOMEWHERE AROUND 30 TO 40% OF YOUR TOTAL. SPEND GENERALLY AND YOUR OPERATING COSTS REPRESENT MORE LIKE 60 TO 70% OF THE SPENDING. SO IN A YEAR WHERE ANY CITY OKAY, WE'RE GOING TO NEED TO CUT BACK IN X Y Z AREAS. THE FIRST THING GENERALLY, WE SEE AS CAPITAL SPENDING GETS CUT. SO WHAT HAPPENS IS IT RELATES TO THE FLEET IS OKAY. WELL, INSTEAD OF REPLACING 600, THESE ARE JUST EXAMPLES HERE, BUT 600,000 WORDS OF VEHICLES. ROLLING TO REPLACE 300,000. BUT THEN OVERALL AVERAGE AGE OF THE FLEET GOES UP. RIGHT AND SO THEN OUR OPERATING COSTS START TO INCREASE THE ONLY WAY TO LOWER BOTH PIECES OF THE PIE. IF YOU WILL IS TO LOWER THE AVERAGE AGE OF 20. LET ME SHOW YOU AN EXAMPLE OF HOW THAT'S POSSIBLE.

THIS IS A CHEVY SILVERADO 21 THAT RETAILS FOR $39,000. CITY DUNCANVILLE CAN BUY THAT EXACT THING VEHICLE ON THE STATE CONTRACT THAT YEAR FOR 26,000. SO THIS IS THE BUYING POWER YOU ALREADY HAVE. RIGHT? I MEAN, IF I COULD GO PURCHASE A VEHICLE FOR MYSELF, 26,000 ESSENTIALLY $14,000 BELOW MARKET VALUE. WOULDN'T THAT BE INCREDIBLE? BUT I'M NOT PERSONALLY A GOVERNMENT ENTITY, SO YOU GUYS ARE ALREADY DOING A GREAT JOB FROM A BUYING STANDPOINT, BUT WHAT MOST CITIES ARE NOT LOOKING AT US. WHAT ARE THE VEHICLES WORK IF WE SOLD THEM AT THE RIGHT TIME? SO WE PULLED SOME THIRD PARTY DATA AND IN THIS SAMPLE SIZE OF 2019. SO IN THIS SCENARIO, THESE UNITS WILL BE TWO YEARS OLD. AVERAGE ODOMETER. THAT SAMPLE WAS 27,000 AVERAGE SALES PRICE FOR THOSE UNITS WAS 26 3. SO THIS IS YOUR TRUCK. YOU WOULD HAVE BOUGHT IT RUNNING FOR TWO YEARS AND ESSENTIALLY SOLD IT BACK FROM WHAT YOU BOUGHT IT FOR. JUST BECAUSE YOU PAID 26 94. IT DOESN'T MEAN THAT THE END USER IN THE USED CAR MARKET HAS ANY CLUE WHAT YOU PAY FOR RIGHT THERE, JUST PAYING FOR WHAT IT'S WORTH OR WHAT THE MARKET DICTATES, RIGHT? WE PULLED.

ANOTHER SAMPLE SIZE OF UNITS ARE NEWER. AVERAGING AGAIN BECAUSE THERE WERE NEWER AVERAGE ODOMETER WAS 14,000 AVERAGE SALES PRICE FOR THOSE UNITS WAS 30,000. SO IN THAT SCENARIO, YOU GUYS WOULD HAVE MADE A PROFIT OF ALMOST FOUR GRAND I'M NOT SAYING EVERY SINGLE VEHICLE IN THE FLEET. THERE'S AN OPPORTUNITY TO REPLACE THEM EVERY COUPLE OF YEARS AND BREAK EVEN, YOU KNOW,

[01:45:01]

WE'RE GOING TO START TO SEE ACQUISITION COSTS COME BACK DOWN SLIGHTLY. IT'S GOING TO BE A SLOW TRICKLE, WHICH MEANS THAT THE USED CAR MARKET WILL REFLECT ACCORDINGLY. SO THOSE ARE ALL THINGS THAT WE'RE WATCHING. WE'RE GOING TO BE ADVISING ANNUALLY AS WELL AS WE'RE LOOKING AT THE PLAN, AND IF WE NEED TO MAKE PIZZA TWEAKS OR ADJUSTMENTS TO IT. BUT SO YOU UNDERSTAND COVID NUMBERS. OBVIOUSLY, WE'RE NOT EVEN CLOSE TO WHERE WE WERE AT THAT. SO QUESTION. BASICALLY A RECOMMENDATION FROM ENTERPRISE FLEET MANAGEMENT THAT ON AVERAGE AND NONMEMBERS RESPONSE VEHICLE WE RE CYCLE THAT IN THE TWO YEAR RATE NO, WE WERE SHOWING. WE ARE RECOMMENDING AN ANALYSIS AT THE END THAT I CANNOT GIVE YOU GUYS THE HIGH LEVEL OVERVIEW FIRST, BUT WE'RE RECOMMENDING SOMEWHERE BETWEEN A THREE AND A FIVE YEAR REPLACEMENT PLAN CAN ALWAYS BE ADJUSTED THROUGHOUT THE ANY TIME DURING THE TERM. UM IF THE MARKET TAKES BACK UP IN A PARTICULAR ASSET IS GOING TO SELL FOR HEART, AND THIS IS EXACTLY WHAT WE SAW DURING COVID. WHEN REESE OH, STARTED TO GO UP. I COULD JUST GIVE YOU AN EXAMPLE CITIES LIKE KELLER AND COLLEYVILLE BEEN ON THE PLAN AND ARE TAKING OUR RECOMMENDATIONS GOT TO TAKE ADVANTAGE OF A 40% INFLATED MARKET. SO THEY COULD GET OUT OF ASSETS SOONER. AND AS LONG AS WE'RE PROACTIVE, WE'RE PLANNING IN ADVANCE FOR THOSE REPLACEMENTS WERE FACTORED IN THOSE VEHICLES DURING THE WINDOWS, AND THAT'S SOMETHING THAT'S CHANGED SIGNIFICANTLY SINCE COVID IS THE AMOUNT OF TIME AND I THINK FIRE HAVE SEEN THIS MASS CANCELATIONS ON POLICE VEHICLES STUFF THAT THEY'VE BEEN THEY'VE ORDERED. THEY JUST MANUFACTURERS NOT GOING TO PRODUCE IT, SO IF YOU DON'T ORDER IN A TIMELY MANNER, GENERALLY IS RIGHT BEFORE YOU GUYS ARE GOING TO IMPROVE YOUR BUDGET, SO IT'S KIND OF IT'S GETTING IN THAT WINDOW. UM AND THE VEHICLES OBVIOUSLY ARE GOING TO COME IN 6 TO 9 MONTHS ANYWAYS, RIGHT, BUT, UM, THAT THAT CAN BE EVALUATED AND TWEETS TO ANSWER QUESTIONS. YEAH SO, ESSENTIALLY, THIS THIS IS ILLUSTRATED WITH THE ANALYSIS IS GOING TO PROVE OUT RIGHT? IT'S THAT WHAT MOST FOLKS THINK OF IS OKAY. WELL, THE DEPRECIATION HAD I TAKEN THE FIRST YEAR ESPECIALLY WHEN YOU'RE THINKING ABOUT YOUR OWN PERSONAL VEHICLE . HOW LONG YOU WANT TO RUN THE ASSET? YOU DON'T WANT TO REPLACE IT TOO SOON, BUT FOR GOVERNMENT ENTITIES, YOU DON'T REALLY HAVE MUCH OF A DEPRECIATION BECAUSE YOU'RE BUYING IT SO WELL BELOW MARKET VALUE, WHICH IS GOVERNMENT INCENTIVES, RIGHT? SO YES, WE WANT TO STRETCH THAT OUT TO THE APPROPRIATE TIME. AND MOSTLY, FOLKS THINK, OKAY, WELL, WE'RE GOING TO GET RID OF THE ASSET WHEN OUR OPERATING COSTS OF MAINTENANCE AND FUEL OKAY. DON'T PUT ANY MORE RESONANCE IN THAT VEHICLE, RIGHT? WHAT'S MORE IMPORTANT THAN ANYTHING ELSE IS. WHAT'S THE VEHICLE WORTH? WE SOLD IT AT THE RIGHT TIME. THAT ORANGE LIFE RIGHT THERE IN THE MIDDLE OF THE CENTER. THAT CIRCLE. SO AGAIN, THIS IS CAN BE A MOVING TARGET, DEPENDING ON THE ASSET AND AGAIN. THE AFTERMARKET PLAYS A SLIGHT ROLE IN IT AS WELL. BUT WHAT YOU'RE GOING TO SEE KIND OF SNEAK PEEK TO THE END OF OUR PRESENTATION IS IT'S GOING TO COST THE CITY ABOUT THE SAME AS WHAT YOU GUYS ARE DOING TODAY TO TURN OVER THE VEHICLES AGAIN, DEPENDING ON THE ASSET BETWEEN THREE AND FIVE YEARS. IT'S GOING TO LOWER YOUR OPERATING COST DECREASE DOWNTIME THAT YOU GUYS WERE EXPERIENCING RIGHT NOW AT THE SHOPS. UM AND IT'S GOING TO PROVIDE A NEW WORD. FRESHER, SAFER FLEET. FOUR STAFF RIGHT, WHICH BASED ON THE PREVIOUS PRESENTATIONS, RECRUITMENT IS A BIG DEAL FOR YOU ALL AS WELL. IT SOUNDS LIKE , UM AND SO THAT WILL PLAY A ROLE IN HAVING YOU KNOW NEWER ASSETS AGAIN. THEY'RE GOING TO COST THE CITY ABOUT THE SAME AS WHAT YOU GUYS ARE DOING TODAY.

SO ALL OF THAT SOUNDS GREAT, RIGHT? BUT HOW DO WE FIND THIS? RIGHT SO THERE'S A COUPLE OPTIONS HERE. YOU COULD CONTINUE TO PAY CASH AND YOU GUYS HAVE BEEN DOING A GREAT JOB PUTTING MONEY INTO YOUR FUND BALANCE. UM AND JENNIFER AND I WENT THROUGH THOSE NUMBERS. I THINK WE'RE IN A REALLY GOOD SPOT BASED ON WHAT YOU GUYS HAVE, UM, SO IF YOU CONTINUE TO PAY CASH, FOR EXAMPLE, I JUST USE ROUND NUMBERS HERE. I SAID 150 ASSETS. IF YOU REPLACE THEM EVERY FIVE YEARS. YOU'D REPLACE 38 YEAR IF THE AVERAGE COST OF VEHICLES 50,000 AND HE WOULD NEED TO HAVE 1.5 MILLION IN THAT FUND BALANCE , NOT JUST THIS YEAR TO REPLACE THOSE 30. BUT NEXT YEAR NEXT YEAR NEXT YEAR NEXT YEAR, RIGHT TO GET SUSTAINED THE PLAN SO YOU COULD DO THAT? YOU COULD DO A TRADITIONAL FINANCE, WHICH JUST LIKE IF YOU WERE FINANCING YOUR OWN PERSONAL VEHICLE, RIGHT? YOU PAY THAT PEOPLE OFF. LET'S SAY OVER FIVE YEARS YOUR PRINCIPAL PORTION OF YOUR PAYMENT WOULD BE TENDERING IN THIS SCENARIO, OR A NET CASH DIFFERENCE AT 1.2 MILLION WOULD ONLY COST US 300,000 WERE FINANCING THIS THING. 30 VEHICLES. OR YOU CAN USE A MARKET VALUE FINANCE,

[01:50:03]

THESE ARE COMMERCIAL VEHICLES ARE GOING TO GET BEAT UP THE MARKET VALUE FINANCE AGAIN IS STRUCTURED LIKE A FINANCE THE ONLY DIFFERENCE BETWEEN A TRADITIONAL FINANCE AND MARKET VALUE FINANCES. WE'RE GOING TO FUND A PORTION OF THE VEHICLE INSTEAD OF PAYING IT OFF TO ZERO. TO A RESIDUAL VALUE, WHICH IS GOING TO FREE UP CASH FLOW. LET ME GIVE YOU A QUICK EXAMPLE IF I HAD A WHITE BORDER DRAW THIS OUT FOR YOU, BUT LET'S SAY IT'S THE SAME $50,000 VEHICLE.

WE'RE GOING TO SELL IT AT THE END OF FIVE YEARS, AND IT'S WORTH $20,000. THAT'S THE MARKET VALUE INSTEAD OF PAYING IT OFF TO ZERO, ESSENTIALLY FINANCING IT DOWN TO ZERO AND THEN GET THAT 20 GRAND BACK FOR THE EQUITY BACK AT THE END OF THE TERM. WE'RE SAYING OKAY, WELL, WE KNOW IT'S WORTH 20,000. WHY WOULD WE FINANCE IT DOWN TO SO YOU'RE ESSENTIALLY FINANCING $40,000 INSTEAD OF 50 OVER THE SAME PERIOD OF TIME. SO FROM A MONTHLY PAYMENT STANDPOINT, YOU'RE INCREASING CASH FLOW. WHEN YOU SELL IT FOR 20 ABOVE THAT 10 10 GRAND RESIDUAL THE 10 GRAND IS YOUR EQUITY SO WE CAN CUT YOUR CHECK BACK FOR YOU ROLL IT INTO THE NEXT VEHICLE. IT'S UP TO YOU. SO IT'S REALLY JUST A CASH FLOW TO AGAIN. NO PENALTY IS NOWHERE INTER PENALTIES, BUT IT'S WHAT ALLOWS US TO SUSTAIN THIS BECAUSE IT DOESN'T REQUIRE AS MUCH CAPITAL TO ONE TURN OVER THE FLEET, BUT THEN CONTINUE TO SUSTAIN THIS LONG TERM. THE QUESTIONS ON THIS PIECE OF.

AGAIN IT'S JUST LIKE A CAT. IT'S JUST LIKE A FINANCE. ESSENTIALLY THAT WE'RE NOT FINANCING A DOCTOR. ZERO GIVES US A LOT MORE FLEXIBILITY. SO WE'RE NOT GOING TO JUST GIVE YOU A ONE TIME RECOMMENDATION. AS I ALLUDED TO EARLIER WE'RE GONNA THIS IS A PART OF THE ONGOING MANAGEMENT OF THE PROGRAM WILL CONTINUE TO WORK WITH STAFF TO PROVIDE RECOMMENDATIONS. I'M THE ACCOUNT EXECUTIVES OF MY JOB IS TO HELP DESIGN THE PLAN. DO THE ANALYSIS ON THE FRONT END AND BE THERE WITH THEIR ACCOUNTING THROUGH THE ONBOARDING TO MAKE SURE EVERYTHING IS SMOOTHLY. THE CLIENT STRATEGY MANAGER WILL COME OUT AND MEET WITH YOU GUYS AT LEAST TWICE A YEAR. TWO OF THE MEETINGS VERY, VERY IMPORTANT ONE YOUR FLEET PLANNING MEETING AS WE JUST TALKED ABOUT HOW ORDERING IS MAKE FOR LAST YEAR. LAST MODEL HERE, TAHOE'S WERE OPEN FOR FOUR HOURS. FOR FOUR HOURS. CHEVY TRUCKS ROLLING FOR 12 AND THAT WAS IT FOR THE DONE FOR THE WHOLE YEAR. SO THERE'S THAT PLANNING MEETING IS REALLY IMPORTANT. WE ALIGN IT WITH YOUR BUDGET PROCESS. SO GENERALLY WE WANT TO BE WITH YOU IN SPRING FULL OF ALREADY OUTLINED THE VEHICLES THAT WILL RECOMMEND INTO HER PLACE WILL BE BUILDING UP. THE COSTS OBVIOUSLY WON'T HAVE FINAL MODEL YOUR COST THAT WILL BE BUILDING AN INFLATION FACTOR. SO WE'VE GOT ENOUGH BUILT INTO YOUR BUDGET. AND THEN THAT WAY WE CAN PRESENT TO COUNSEL. HERE'S WHAT WE WANT TO DO AND THEN GET AHEAD OF THE CURVE RIGHT SO WE CAN ORDER VEHICLES WHEN THOSE WINDOWS ARE OPEN, AND IT GETS US, UM, HAD IN TERMS OF IN THE LINE, ESPECIALLY WITH AFTERMARKET TAKING AS LONG AS IT DOES. SO THEY'LL MEET WITH YOU IN THAT MEETING AND THEN IN YOUR CLIENT REVIEW, WHICH IS A YEAR OVER YEAR ANALYSIS ON ALL OF YOUR EXPENDITURES. HOW DO WE PERFORM JUST LIKE YOUR FINANCIAL PLANNER IN TERMS OF DEPRECIATION , MAINTENANCE, FUEL, RESALE, EVERYTHING THAT WE ARE GRADING AND TRACKING FOR YOU COUNT COORDINATOR ESSENTIALLY DAY TO DAY PERSON TO HELP US. STOP ANSWER ANY QUESTIONS? UM YOU KNOW, PERSON WHO KNOWS YOUR ACCOUNT INSIDE AND OUT. OUR CORPORATE OFFICE AND WE'RE GONNA TALK A LITTLE BIT MORE ABOUT MAINTENANCE NOW, SO I'LL EXPLAIN THAT. UM, SO TODAY YOU GUYS HAVE KIND OF A BLEND. UM, RA MAINTENANCE PERSPECTIVE. YOU GUYS HAVE SOME MAINTENANCE HAS BEEN PERFORMED IN YOUR IN HOUSE SHOP TODAY. UM BUT JUST DUE TO THE, UM I WOULDN'T SAY OVERLOAD BUT JUST DUE TO THE NATURE OF HOW MUCH MAINTENANCE NEEDS TO BE DONE AT THIS TIME, AND ESPECIALLY DUE TO THE AGE OF THE FLEET, THERE'S ACTUALLY OUTSIDE SHOPS AS WELL THAT ARE HAVING TO TAKE HELP WITH THE OVERFLOW, AND SO OUR PROGRAM WOULD WORK WITH ANY LOCAL SHOP IN THE AREA, AND IT'S REALLY DESIGNED TO MAKE IT REALLY EASY FOR STAFF TO GET IN AND GET OUT OF THE BACK ON THE ROAD FOR NON EMERGENCY RESPONSE VEHICLES, WE CAN ACTUALLY BUDGET THAT. I MEAN, IT'S SO TRUCK BECAUSE WE MANAGED 600,000 VEHICLES ON A MAINTENANCE PROGRAM WAS A PRETTY GOOD IDEA HOW MANY OIL CHANGES ETCETERA NEEDS TO BE DONE UP TO THAT FIVE YEAR MARK AND WE WILL, WE CAN DIVIDE THAT COST EVENLY TO CREATE A PREDICTABLE OPERATING EXPENSE, AND IT COVERS ANYTHING . SO IT'S BASED ON THE ROUTINE MAINTENANCE YOU NEED TO DO ANYWAYS, IT WILL COVER ANY REPAIR THAT COULD OCCUR ENTERPRISES WILLING TO GUARANTEE THAT EXPENSE. WE DON'T HAVE AS MUCH SAMPLE HISTORY ON EMERGENCY RESPONSE VEHICLES MAINTENANCE ON THAT JUST YET, BUT WE DO WANT TO HELP TRACK THEIR MAINTENANCE NEGOTIATE COST ON EVERY HALF SO

[01:55:02]

QUIET WEBSITE. I'M JUST REAL QUICKLY YOU CAN HAVE AS MANY USER INTERFACE. WHEN I WAS WORKING WITH PROSPER. I BELIEVE IT'S PROSPER THEY WERE PAYING FOR ADDITIONAL SOFTWARE MAINTENANCE SOFTWARE SEPARATE FROM OBVIOUSLY OUR PROGRAM. UM, IT WAS SEVERAL $1000 I REMEMBER.

UM BUT THIS COMES WITH OUR PARTNERSHIP THAT JUST GIVES STAFF ADDITIONAL VISIBILITY.

EXTRA REPORTING AUTOMATES OIL CHANGE ALERTS, JUST GOING TO AUTOMATE A LOT OF THE TRACKING THAT THEY'RE DOING TODAY. SO WE TALKED A LOT ABOUT SELLING VEHICLES AT THE RIGHT TIME. AND WHY IT'S SOMEWHERE IMPORTANT. WHAT'S EQUALLY AS IMPORTANT AS SELLING TO THE RIGHT BUYER. SO I THINK WE REALIZED ENTERPRISE A LONG TIME AGO THAT SELLING AN AUCTION MIGHT NOT YIELD THE HIGHEST RATE OF RETURN. SO WE CREATED AN INTERNAL DEPARTMENT CALLED THE REMARKETING DIVISION.

ALL THEY DO IS HAND SELL OUR VEHICLES. SO WE WILL MARKET TO THE MAJOR FRANCHISE DEALERS.

LOTS ALL YOUR WHOLESALERS AND PIN THE BUYERS AGAINST EACH OTHER TO DRIVE UP THE SALES PRICE ON AVERAGE, AND THIS IS NATURALLY WERE OUTPACING AND IN TEXAS, OBVIOUSLY BETTER THAN 10% BUT WE'RE OUTPACING AUCTION OR TRADE IN VALUE BY 10, WHICH MEANS ON THAT SAME $20,000 TRUCK THAT YOU'RE TALKING ABOUT. THAT WOULD BE AN ADDITIONAL TWO GRAND BACK TO THE CITY. BASED ON OUR CAPABILITIES. BY AND LARGE, THIS IS ABSOLUTELY OUR BIGGEST COMPETITIVE ADVANTAGE. NOBODY CAN DO THIS BETTER THAN WE CAN, AND WE'RE VERY PROUD OF THAT. AND IT'S GREAT AND ALL OF THESE FOLKS IN THIS DEPARTMENT, THIS IS AN INTERNAL CULTURE THAT'S CREATED FOR ENTERPRISE BECAUSE THEY'RE SENDING OUT SELLING OUR RENTAL CAR VEHICLES. ALL OF THESE YOUNG GUYS OUT OF COLLEGE ARE GRADED AGAINST EACH OTHER ON A PERFORMANCE REPORT TRYING TO SELL THE ASSET FOR MORE THAN THEIR PEERS, BECAUSE THAT'S HOW THEY GET PROMOTED. SO THAT CULTURE IS THERE AGAIN. WE'LL HANDLE THE WHOLE PROCESS, ESPECIALLY FOR EMERGENCY RESPONSE. THE RUGBY IDENTIFY.

ALL OF THOSE THINGS WERE ABLE TO DO TO HELP MAKE THE PROCESS EASIER FOR YOU ALL. SO REAL QUICK. I WANT TO WALK THROUGH OUR RECOMMENDATIONS HAVE SPENT THE LAST COUPLE OF MONTHS I'M GOING THROUGH EXISTING EXPENSE. UM WHAT THE PLAN HAS LOOKED LIKE UP TO THIS POINT. AND I JUST WANT TO WALK YOU THROUGH, BECAUSE I KNOW THIS IS MAYBE A LITTLE SMALLER. BUT UM, SO ESSENTIALLY THIS SEGMENT OF THE FLEET THAT WE'RE TALKING ABOUT, AND I SHOULD MENTION YOU KNOW, MEDIUM DUTY TRUCKS, ADULT TRUCK CREAM BODY. THOSE VEHICLES WERE NOT GOING TO RECOMMEND TO REPLACE EVERY FIVE YEARS, RIGHT ? THOSE ASSETS HAVE THEIR OWN LIFE CYCLE OF WHICH WE ABSOLUTELY CAN HELP WITH. BUT FOR THE SAKE OF LOOKING AT A SUSTAINABLE REPLACEMENT PLAN, THE LIGHT ESSENTIALLY THE WHITE AND BE LIKE KIND OF MEDIUM DUTY, PLEASE. UM LIKE ONE TON OF BELOW, IF YOU WILL, UM, THAT'S THE SEGMENT OF THE FLEET THAT WE'RE TALKING ABOUT HERE, SO THIS DOESN'T INCLUDE FIRE TRUCKS AND AMBULANCES REALLY WISH WE COULD DO. FIRE TRUCKS IS TRUCK FIRE TRUCKS BECAUSE THERE'S DEFINITELY A MARKET FOR IT. BUT THERE'S 100 AND EIGHT VEHICLES IN THIS SEGMENT OF THE FLEET. BASED ON YOUR PURCHASES TO YOUR REPLACING, ON AVERAGE ABOUT EVERY NINE YEARS. OBVIOUSLY, EMERGENCY RESPONSE A LITTLE BIT SOONER. AND THEN THE NON EMERGENCY RESPONSE A LITTLE LONGER THAN THAT. BASED ON THE DATA, PROVIDED YOU GUYS ARE MAINTAINING THE FLEET TODAY, AND I SHOULD MENTION 74 VEHICLES THAT WE'RE GOING TO BE RECOMMENDING TO REPLACE THE AVERAGE AGE IS 12 YEARS OLD OLD. SO THAT HAS A LOT TO DO WITH THE FACT THAT YOU GUYS TRIED TO REPLACE A GOOD CHUNK OF YOU THE LAST COUPLE OF YEARS. AND THEY GOT CANCELED WITH THE FACTORY, SO WE'RE GONNA HAVE A LITTLE BIT OF KETCHUP TO DO THE 74. I'M SKIPPING IT LIGHT A LITTLE BIT, BUT ALSO INCLUDES SOME OF THE PEOPLE THAT ARE INBOUND THIS YEAR THAT YOU GUYS HAVE ALREADY ORDERED, RIGHT. SO I JUST WANTED TO ACCOUNT FOR THE COSTS FOR THOSE, SO YOU GUYS HAD EVERYTHING INCLUDED. SO ON AVERAGE, FOR THIS SEGMENT OF YOU GUYS ARE DOING ABOUT 10,000 MILES A YEAR. WE KNOW WE CAN BUDGET THE MAINTENANCE FOR AROUND $105 PER VEHICLE PER MONTH. SO EMERGENCY RESPONSE WE HAD TO DRAW SOME ASSUMPTIONS BASED ON YOUR CURRENT COST, BECAUSE WE CAN'T BUDGET THOSE, SO WE WOULD EXPECT FOR IT TO BE VERY SIMILAR TO WHAT YOU GUYS ARE DOING TODAY, BUT A LITTLE BIT LESS. UM I DIDN'T WANNA UNDER INFLATE THAT BECAUSE WE KNOW EMERGENCY RESPONSE IS WHAT IT IS. YOU KNOW, THOSE ASSETS ARE JUST BRING DIFFERENT AND THEN WE USE 3 50 A GALLON FOR THE CONSTANT THAT FEEDS THROUGH THE ENTIRE ANALYSIS. SO OTHER 108 VEHICLES BASED ON YOUR NINE YEAR LIFE CYCLE YOU'RE PLACING

[02:00:01]

AND THEN YOU'LL SEE THERE'S KIND OF DIFFERENT DIFFERENT QUANTITIES ON THE SECOND LIFE CYCLE HERE, SO THE BLUE REPRESENTS REPLACING THE WHOLE FLEET, THE WHOLE LEGACY FLEET, TURNING IT OVER OVER THAT 3 TO 5 YEAR PERIOD, AND THEN THE BLACK REPRESENTS REPLACING IT AGAIN.

UM AND THAT IS BECAUSE WE HAVE AGAIN A CHUNK OF VEHICLES THAT ARE ON THE THREE YEAR LIFE CYCLE, SO THE QUANTITY IS A LITTLE BIT DIFFERENT. DEPENDING ON WHAT'S GETTING REPLACED EACH YEAR. YOU ALSO NOTICED AT LEAST PAYMENT GOES DOWN SLIGHTLY IN THAT SIX YEAR AND THAT'S BECAUSE THERE ARE SOME ASSETS THAT WERE ABLE TO ROLL THE AFTERMARKET EQUIPMENT THAT WAS CAPPED INTO THE LEASE ON THE FIRST ROUND INTO ONTO LIKE ANOTHER CHASSIS, FOR EXAMPLE, SO WE TOOK THE SERVICE BODY WERE ABLE TO MOVE IT OVER SO WE DIDN'T HAVE TO FINANCE ANOTHER SERVICE BODY, FOR EXAMPLE. SO YOU'LL SEE HERE. MAINTENANCE STEADILY GOES DOWN. AS WE'RE NOW FULLY INTEGRATED AND CYCLING OUT THE FLEET. AND YOU'LL NOTICE HERE IN THE BLUE AGAIN. THE EQUITY THAT YOU HAVE REPLACING THE LEGACY FOR YOUR YOUR CURRENT OWNED UNITS. AND THEN THIS IS WHERE IT GETS REALLY EXCITING. HERE EQUITY LEAST. THIS IS THE EQUITY THAT YOU HAVE ABOVE YOUR PAY OFF. SO IN THAT SCENARIO, THE EXAMPLE THAT I GAVE YOU $50,000 VEHICLE THAT'S GOING TO SELL FOR 20,000.

WE'RE GOING TO FINANCE IT DOWN TO TURN WHEN IT SELLS FOR 2010 GRAND INEQUITY. THIS IS THE EQUITY THAT YOU HAVE ABOVE YOUR PAY OFF. ESSENTIALLY THE VEHICLE'S ARE WORTH. 2 TO 3 TIMES MORE. THEN WHAT THEY WERE WHEN YOU SOLD THEM TO START. AND THAT JUST GOES TO PROVE SELLING THEM AT THE RIGHT TIME. THEY'RE WORTH SIGNIFICANTLY MORE. UM AND THIS IS REALLY WHAT AGAIN EQUITY PIECE AND ROLLING IT BACK INTO THE FLEET. THIS IS JUST WHAT CONTINUES TO MAKE THIS MODEL SUSTAINABLE LONG TERM. SO ALL IN ALL YOU HAVE ABOUT $3.5 MILLION IN EQUITY THAT WILL BE COMING

[02:05:07]

AREN'T YOU RESPONSIBLE FOR ALL OF MAINTENANCE, SO IT'S NOT LIKE A RENTAL WHERE IT'S LIKE, INCLUDED IN YOUR MONTHLY PAYMENT. IT'S STILL AN ITEMIZED AMOUNT, SO ESSENTIALLY HOW THEIR BRAIN IS CALCULATED ITS WE LOOK AT, OKAY. WHAT TYPE OF ASSET LIKE A GAS ENGINE VERSUS A DIESEL ENGINE WOULD HAVE DIFFERENT REPAIR COSTS RIGHT? SO IF IT'S A GAS HALF TON, AND IT'S ONLY DOING 5000 MILES A YEAR, IT'S ONLY GONNA NEED X AMOUNT OF OIL CHANGES UP TO THE FIVE YEAR MARK. UM AND THEN WE TAKE THAT COST AND DIVIDE THAT EVENLY. SO IT'S YOU KNOW, MAYBE A ROUTINE FLUSH FROM THE MANUFACTURER SOMETHING IN THAT IN THAT PERIOD . WELL, UM, VEHICLE THAT'S DOING 20,000 MILES A YEAR. WOULD NEED MORE OIL CHANGES WITHIN THAT SAME PERIOD OF TIME AS THEY'RE DOING MORE MAINTENANCE OVER THAT PERIOD OF TIME, SO THAT'S ESSENTIALLY HOW IT'S CALCULATED.

IT COVERS ANY REPAIR. IF THE FRONT END WERE TO GO OUT DOESN'T COVER BODY DAMAGE, BUT IT COVERS ANY MECHANICAL ISSUE THAT COULD OCCUR. AND AGAIN. POLICE AGREEMENT. FOODS FACTOR FOR UP SOME. MAYBE YES, THERE IS A SEPARATE ADDENDUM. ESSENTIALLY IT'S A IT'S A ANCILLARY PROGRAM.

YES, YES. I DIDN'T THAT'S WHY WHEN I LOOKED AT THAT NORMAL LEASE, YOU DON'T PAY FOR ANYTHING. 50 BUCKS A WEEK. IT'S GOING TO BE AT LEAST LIKE A FINANCE YET, BUT IT'S GOING TO BE A WRITER WITH MAINTENANCE. WITH THE MAINTENANCE WRITERS. YEAH, IT'S A MONTH MONTHLY AMOUNT THAT WOULD COVER ANY MAINTENANCE. IN ADDITION TO YOUR MOTHER, YES. COMES IN THE SAME STATEMENT. THOSE YEAH. AND THIS IS REALLY GOING TO UM, BE A GREAT SUPPLEMENT TO THE IN HOUSE SHOCKED TO HELP THEM FOCUS ON CRITICAL EQUIPMENT, FIRE TRUCKS , UM AND REALLY ALLEVIATE A LOT OF KIND OF THE DOWNTIME THAT THEY'RE EXPERIENCING NOW AND ALLOW OUR TECHNICIANS TO HELP WORK WITH THOSE SHOPS AND GETTING THESE VEHICLES BACK ON THE ROAD FASTER, TOO. OKAY? OH, MINOR POINT. I SEE ON THE SLIDE SAYS CONFIDENTIAL AND PROPRIETARY. THIS IS NOT PUBLIC INFORMATION. THAT'S FIRST LOT. ALL OF THEM SAY THAT IT'S OKAY. IT'S JUST THIS LOOKS EVERY PUBLIC EVERY GOVERNMENT PRESENTATIONS. THAT'S OKAY. GIVE YOU PERMISSION. YEAH LOOK, BECAUSE THIS IS BEING PRESENTED EVERY COUNCIL WORKSHOP. EVERYTHING PRESENTED PUBLIC BE FAIR. THIS PRESENTATION HAS BEEN PRESENTED AT 80. SO UM, IT'S OK , JUST WATCHING, YOU KNOW? YEAH DON'T STEAL OUR TRADEMARKS. CLOSES INFORMATION BECAUSE OF THEM. OKAY? YEAH, YEAH. OKAY.

QUESTIONS, COMMENTS. VERY MUCH. THANK YOU. UM. I'M GOING BACK TO YOUR QUARTERLY PRESENTATION WAS CALLED WHERE YOU SHOWED SOME PERCENTAGES OF VEHICLES THAT WERE OUT OF SERVICE, SOMETHING SERVICE SERVICE. I PRESUME THAT YOU'VE SEEN SOME OF THIS INFORMATION PRIORITY? ABSOLUTELY WELL, SO LOOKING AT THAT AND UNDERSTANDING WHAT'S GONNA BE OFFERED HERE? COMMITTEE ANYTHING BUT THERE IS SOME ADVANTAGE TO POLICE FLEET. VERSUS ORGANIC CONTROLLED. YES SIR. SO I WOULD LIKE TO ADD THAT STAFF HAVE WORK VERY CLOSELY. WITH ENTERPRISE, TOO. EXAMINE ALL THIS

[02:10:09]

YOU KNOW AND HAVE SUCH A LARGER VOLUME. THEY'RE ABLE TO ACTUALLY PURCHASE VEHICLES. UM MORE READILY THAN WE CAN AND GET VEHICLES REPAIRED BECAUSE BECAUSE THEY HAVE SUCH A LARGE NUMBER OF VOLUMES. NOBODY NONE OF THE SHOPS WANT TO DISAPPOINT THEM FOR YOU. AND SO BUT IN, YOU KNOW, EXAMINING EVERYTHING YOU KNOW, PRELIMINARILY. IT LOOKS LIKE A GOOD DEAL TO ME PERFECTLY. NO COMMENTS, QUESTIONS. THANK YOU VERY MUCH. I'M SORRY. YES. PRESENTS. THE BUDGET. WILL YOU DO A COMPARATIVE ANALYSIS? IS THAT POSSIBLE TO SEE IF WE DECIDED TO GO IN SURPRISING TO GO ENTERPRISE. WHAT WILL BE LOOKING AT AS FAR AS THE NUMBERS ON BOATS IN THERE. I CAN CERTAINLY PRESENT THAT IT'S NOT IN TODAY'S PLAN. THANKS. YEAH. YEAH THAT IS ONE OF THE OPTIONS THAT WE NEED TO LOOK AT. BECAUSE YOU KNOW THIS PRESENTATION. WILL NOT ADDRESS ALL OF OUR FLEET. AND WE KNOW THAT WE HAVE OPERATIONAL COSTS ASSOCIATED WITH, YOU KNOW , MAINTAINING THE ENTIRE FLEET, SO WE'LL NEED TO LOOK AT THEM AND SEGMENT AND FIGURE OUT YOU KNOW WHICH BOX AND WHAT IMPACT THIS MIGHT HAVE ON OUR OVERALL OPERATIONS. FOR OUR SHOP. MR MCBURNETT. MY QUESTION, MATTHEW MORE FOR MR LONGER, BUT. HOW ARE WE? WHAT WE HAVE A POLICE CAR OR SOMETHING DAMAGE DUE TO ACCIDENTS STUFF. TURN AROUND ON THAT. FAIRLY QUICK OR OR NO.

WE'VE RUN INTO SOME OF THE SAME PROBLEMS THAT A LOT OF. LOT OF PEOPLE DO IS TAKEN LONGER AND LONGER FOR REPAIRS. UM ONE OF OUR FORMER EMPLOYEE, JAMES BROWN, WHO JUST RETIRED HE WAS IN A MINOR ACCIDENT AND HE HAD TO WAIT OVER FIVE MONTHS. TO GET IT. LATELY PREPARED. SOME OF OURS, ESPECIALLY WITH POLICE CARS. IT MAY TAKE A LITTLE LONGER BECAUSE OF SPECIALTY. AND THE VEHICLE. THAT'S JUST. USED TO. IT DIDN'T TAKE THAT LONG. IN THE LAST FEW YEARS. IT'S JUST THE WAY IT'S BEEN. I HAVE A SECOND JUST LOOKING AT THIS AND THINKING ABOUT THIS QUESTION HERE THAT HIS BERTRAM DID THESE NUMBERS THAT YOU'RE SHOWING US HERE AT THE 7400 AND EIGHT IT DOES NOT INCLUDE THE RVS UNDERSTAND THAT IT DOES IT DOES YOUR PLACE AND YOUR ADMIN FIRING UNITS BATTALION. SO THAT'S THAT'S EVERY VEHICLE THE CITY HAVE. IT DOESN'T INCLUDE THE MEDIUM DUTY LIKE DUMP TRUCKS AND LIKE 4, 50 30. THAT'S EXACTLY WHERE I WAS GOING. SO THIS IS THIS IS LIKE DUTY AND ANDY RV, MEDIUM AND HEAVY DUTY. OKAY, SO HOW MANY SO. WHEN IT COMES TIME FOR YOU ALL THIS WHOLE THE BUDGET WITH ASKING, AND WE'RE LOOKING AT THE ENTIRE FLEET WITH THIS BEING A FACET. ENTIRELY BUDGET. YES, SIR. ALL RIGHT, GOOD. YEAH. OKAY? THANK YOU. LET ME TELL YOU AS WELL THAT WE'VE ALL BEEN CONCERNED ABOUT THE MEANS, UM BUT DON'T LOSE SIGHT OF THINK WE'RE. THIS PROGRAM COULD BE BENEFICIAL AND I'LL JUST LEAVE YOU WITH THIS AND

[02:15:06]

YES. AND HERE YOU JUST HAVE ME A SUPERVISOR, MECHANICS. AND SO I , THAT'S WHAT BENEFIT RIGHT THERE. THAT WAS NOT LOST. PRESSURE THAT THE EMPHASIS ON THIS THIS WOULD BE A HUGE PORTION OF THE ENTERPRISE PORTFOLIO DEDICATED TO STAFF UNDERSTOOD THAT DO YOU GO OUT AND BUY $2 MILLION FIRE APPARATUS TO WISH YOU KNOW? ONE POINT EVENTUALLY, WE'VE GOT TO GET SOME FIRE APPARATUS OF THE $1.5 MILLION PARKING THROUGH THAT AROUND TWO YEAR BUILT THAT THREE YEAR BUILD TIME. FOUR YEARS OLD LADDER TRUCK. YEAH, OKAY. ALRIGHT ANY OTHER COMMENTS PURPOSE BERTRAM OR FOR STAFF ON THIS ONE? CAN I ASK ONE MORE QUESTION. THE REP. JENNIFER IS.

THE INSURANCE IN ANY OF THESE NUMBERS, BECAUSE I THINK IF WE HAVE A NEWER FLEET MAYBE THE PML COST ALSO. MY UNDERSTANDING IS YOUR EMAIL SHOULD STAY THE SAME. I HAVEN'T PUT ANY ASSUMPTIONS QUESTION I THOUGHT. FROM WHAT I UNDERSTAND FROM ALL OF OUR CLIENTS THAT HAVE IMPLEMENTED IT SHOULD BE THE SAME. BUT IF THERE'S A REDUCTION BASED ON AGE OF FLEET, I HAVEN'T EXPLORED THAT LATINO. OKAY? THANK YOU.NNL RIGHT. THANK YOU. SO PROMISE NOT TO KEEP YOU VERY LONG. DON'T HAVE ANY QUESTIONS? UM SO I'M GONNA TAKE YOU THROUGHOUT THE POTENTIAL OUTLET CONSIDERING

[D. Discussion on FY 2024 potential budget outlook and highlights.]

UM AND THEN THE REST OF THE MONTH OF AUGUST. VERY BUSY MAN, PUBLIC HEARING AND OUR TAX WRITE HEARINGS, UM, AS WELL AS ADOPT THE TAX RATE IN BUDGET. WHEN YOU SEE THE FACT THAT PROPOSED TAXES PROPOSED TAX RATE. UM WORKING THROUGH THAT NOW IN THE COUNTY WILL NEED AN ESTIMATE. AT LEAST BY RYCHEL PLY IS THEY USE THAT IN THAT TAX RATE WORKSHEET THAT THEY SAID THAT'S 10 FT. LONG. SO IT'LL BE CLOSER CLOSER TO THEM. UM, HELP ME ABSOLUTELY TO SEE IT SO LONG THIS BIRD. YES. BUT WE'LL DEFINITELY TALK ABOUT WHAT WE THINK WE'RE GOING TO BE HERE. BUT THEN WE WON'T KNOW UNTIL WE SEE THOSE FINAL ROLES. UM JUST REDUCING THE STRATEGIC PILLARS BECAUSE EVERYTHING THAT WE DO WE WANT TO ENSURE THAT WE ARE FULFILLING OUR MISSION HERE THROUGH THESE PILLARS, EVERYTHING HIGH QUALITY OF LIFE TO GOVERNMENT ACCOUNTABILITY TO MARKETING STRATEGY. EVERYTHING WE DO. WE DON'T WANNA NEED THESE PILLARS. SO OUR STRATEGIC FOCUS GOING INTO 2024. UM, AS WE STATED BEFORE PEOPLE, PEOPLE OUR NUMBER ONE FOCUS THAT INTERNAL STAFF UM, MAKE SURE WE'RE OFFERING A COMPETITIVE SALARY BENEFITS TO RETAIN PEOPLE AS WELL AS ATTRACT YOU PEOPLE DEVELOP THEM. WE WANT TO MAKE SURE THAT WE HAVE WITH US PRACTICES AND STANDARDS OF DOING . SO YOU HAVE CONFIDENCE IN THE WORK THAT WE DO AND THE SERVICES THAT WE PROVIDE FOR YOU.

[02:20:05]

AND WHAT WE'VE HEARD YOU SAY PROJECTS AND PROCESSES. SO JUST SOME LEGISLATIVE IMPACTS ON THE BUDGET PROPERTY TAX IS A BIG DEAL. UM, AND IN THE STATE LEGISLATURE RIGHT NOW HEARD OF HOUSE BILL ONE. BRINGING THAT UP TO YOU TO YOU AS YOU TALK TO CONSTITUENTS, AND YOU KNOW WHAT PROPERTY TAX MAY BE DOING TO THEM, UM TO THEIR PIT THEIR BANK TO THEIR CHECKBOOK. UM BIG FOCUS FROM THE GOVERNOR FROM FROM LEGISLATURE IS REDUCING THE BURDEN OF INCREASING PROPERTY TAXES SO HOSPITAL ONE REALLY FOCUSES ON THE SCHOOL DISTRICT TAXES. UM, SO WHAT THE HOUSE WOULD LIKE TO DO IS, UH IS. TO THE PROPERTY TAXES THAT'S COOL FOR SCHOOL DISTRICTS. THE SENATE WANTS TO DO IT KIND OF A MODIFIED VERSION OF THAT BY LOWER FIGHT, EXPANDING THE HOMESTEAD EXEMPTION THAT SCHOOL DISTRICTS HAVE UM, AT THIS POINT IT HUSBANDS I THINK, COME TO ANY FINAL RESOLUTION, BUT I WOULD EXPECT THAT SOME FORM OF THIS WILL BE PASSED, THEREFORE HELPING TAXPAYERS REALLY SOME OF THAT BURDEN ON THE SCHOOL DISTRICT SIDE DOESN'T AFFECT THE CITY SCHOOL DISTRICT SIDE. JUST ANOTHER THINGS THAT MAY IMPACT THE CITY. ONE OF THEM HAS TO DO WITH PAID SICK AND INJURY LEAVE FOR FIRST RESPONDERS UP TO A YEAR. WE ALREADY DO THIS CIVIL SERVICE, PART OF CIVIL SERVICE THAT WE HAVE TO GIVE THEM UP, PROBLEMS OFF. UM, FOR WORK RELATED INJURIES, SO THAT WOULD NOT HAVE ANY BEARING AND THEN WE BRIEFLY MENTIONED THIS, MR MILLS ABOUT THE TIMOROUS DIRECTOR COLA . SO THOSE ARE THINGS UM, THAT COULD IMPACT US THAT'S COMING OUT OF LEGISLATION RIGHT NOW. SO GETTING INTO THE GENERAL FUND FIRST GONNA TALK ABOUT READING.

A CHART RIGHT HERE REALLY? FOR VISUAL ROOM. I'M LOOKING AT OUR REVENUES OVER THE LAST FIVE YEARS, AND WHAT IT'S TRYING TO DISPLAY HERE IS THAT WE'RE VERY CONSERVATIVE. WHEN IT COMES TO THE REVENUES THAT WE ESTIMATE YOU CERTAINLY DON'T EVER WANT TO OVERESTIMATE, AND WE HAVE TO BACK OFF ON THAT AND NOT BE ABLE TO, YOU KNOW, YOU KNOW PROJECT BUT, UM NO, AS YOU CAN SEE, THE WHITE IS WHAT RESPONSIVE AND GREEN IS WHAT WE ACTUALLY CAME IN. THIS IS ALL REVENUES WITHIN THE GENERAL FUND. UM SO YES, I HAVE BEEN PRETTY CONSERVATIVE WHEN WE ESTIMATE. UM THIS IS REALLY JUST THE PRELIMINARY HOUSING VALUES CURRENTLY, UM, OVER THE LAST THREE YEARS, THE LAST NUMBERS THAT WE GET FROM THE CENTRAL APPRAISAL DISTRICT WAS ON MAY 20/6. THIS IS THE LAST NUMBERS WE'LL SEE UNTIL WE GET TO JULY 20/5. UM SO THEIR ESTIMATE OF ABOUT 15% CURRENTLY OVER THE CERTIFIED VALUES THAT WE RECEIVED LAST YEAR. WHAT YOU SEE HERE IN THE ORANGE, DEMONSTRATING, UM, USUALLY OVERESTIMATE AS THEY DO ALL THE APPRAISALS. AND THEN WHEN ALL THE PROTESTS COME IN AND WHAT THEY AWARD AND WHAT THEY DON'T AWARD USUALLY DROPS OUR ULTIMATE ARE CERTIFIED RATES, BUT SOMETHING FOR THIS YEAR UM, IS VERY AGGRESSIVE WITH REAPPRAISING RESIDENTS ABOUT 70 75% PARCELS WILL BE REEVALUATED SO WE CAN ONLY EXPECT THAT HOPING MORE PROTESTS. UM, HAPPENING, SO IT'S A VERY BUSY SUMMER FOR THEM. SO STAY TUNED TO WHAT OUR ACTUAL VALUES WILL BE. BUT SOME OTHER GOOD NEWS HERE IS NEW CONSTRUCTION. LAST YEAR, WE HAD 32 MILLION IN NEW CONSTRUCTION HIT OUR BOOKS. WHY THAT'S A GREAT THING IS BECAUSE WHEN WE FACTOR IN THAT INTO TAX RATE, NEW CONSTRUCTION IS NOT A PART OF THAT 3.5% GROWTH THAT WE ARE CAPPED AT. BY LAW. SO THIS YEAR WE SHOW 22 MILLION, SO THAT'S GOING TO BE A BIG PIECE OF THIS IS, UM YOU KNOW. LAST YEAR WAS YOU KNOW, THE BIG BIG INDUSTRIAL PARK THAT I WENT UP THERE? UM UM, ON THE NORTH SIDE OF TOWN. PART OF IT WAS IN LAST YEAR AND IS UNBELIEVABLE REMAINING PART OF THE VALUE OF THAT PROPERTY USE HITTING THE RULES. MR BROWN, IF I COULD ASK FAVOR WITH THIS COMES BACK AGAIN FOR ANOTHER REVIEW IS THERE COULD BE A COMPARISON OF COMMERCIAL VERSUS RESIDENTIAL. FLOOR INCOME. YEAH WE CAN SEE THAT. MAYBE FOR FIVE YEAR

[02:25:07]

[02:30:01]

UM AND ACCORDING TO THE H R O. THE LOCAL GOVERNMENT IMPACT FISCAL IMPACT. WELL POTENTIALLY SIGNIFICANT CANNOT BE DETERMINED AS A BUILDING PART OF THIS REPORTED TRUSTEES TO DETERMINE THE APPROPRIATE NUMBER OF SECURITY OFFICERS, SO THERE IS A POTENTIAL IMPACT TO LOCAL THE EXPECTED INCREASE. OKAY SO HERE'S THE GENERAL FUND REVENUE TOTAL KIND OF AS A WHOLE AGAIN WHAT WE ARE MASTERING AT THIS POINT IN TIME, SO IT'S VERY PRELIMINARY. WE TALKED ABOUT PROPERTY TAXES. KIND OF BASED ON THAT, UH, VALUES THAT WE HAVE RECEIVED TO DATE. AND YOU KNOW, COUNTY GIVES KIND OF A GOOD ESTIMATING TOOLS. SO, UM, DETERMINE OF WHAT THAT TAX RATE COULD POSSIBLY LOOK LIKE, SO KIND OF THROWING IN THE FORMULA THERE AND DRAWING IN THOSE NUMBERS. ABOUT A ABOUT A MILLION DOLLARS INCREASE THERE. BUT AS YOU CAN SEE FROM UM, LAST YEAR TO THIS CURRENT FISCAL YEAR, WITH THE NEW CONSTRUCTION AND EVERYTHING THAT WAS ABOUT 2 MILLION UM, AND INCREASE TAX RATES SO IT COULD BE ACTUALLY MUCH HIGHER. ONCE AGAIN. WE SEE WHAT THOSE FINAL PROPERTY VALUES ARE GOING TO LOOK LIKE. THAT'S WHAT THE PROPERTY TAX RATES BEING. DIFFICULT. YEAH, SO YOU KNOW, SO THERE ARE TWO DIFFERENT RATES. YOU'RE LOOKING AT THE TAX RATE, SO IT'S KIND OF GO BACK ON THAT A LITTLE BIT. SO THERE'S NO NEW REVENUE RATES. SO YOU KNOW IF WE SET THE RATE THAT WOULD EQUAL EXACTLY WHAT WE'VE EARNED, THE RATE WOULD BE, YOU KNOW A CERTAIN THIS IS ASSUMING THE 3.5% INCREASE BASED ON THE INFORMATION THAT WE HAVE TODAY.

ESTIMATE THAT PROPERTY TAXES SO AGAIN WE WILL DEFINITELY KNOW ONCE WE GET CERTIFIED VALUES.

SALES TAX AND OTHER TAXES. THE SECOND CATEGORY, SO THE MAIN THING IN HERE IS A SALES TAX AND PROPERTY TAX RELIEF. THERE'S ALSO A VERY SMALL AMOUNT IN HERE FOR ALCOHOL TAX BEVERAGE. WE'VE SEEN THAT INCREASE IN THE LAST FEW YEARS. JUST BECAUSE NOW WE CAN TAKE, YOU KNOW, MADE MIXED BEVERAGES WHOLE, UM, THAT WAS SOMETHING THAT WAS DONE IN COVID, AND THEY KEPT THAT SO THAT ACTUALLY HAS GONE UP TO BED. UM, NEXT CATEGORIES. PERMITS AND LICENSING. THIS IS REALLY JUST BUILDING PERMITS. HEALTH INSPECTIONS, THINGS LIKE THAT. THESE ARE NOT YOU KNOW, MONEY MAKING AREAS REALLY IS JUST QUESTION. YOU KNOW THE COST FOR SERVICE. FINES AND FEES COURT UM, TRAFFIC TICKETS, THINGS LIKE THAT. UM. INTER GOVERNMENT REVENUES. THOSE ARE THE REIMBURSEMENTS RECEIVED. SO FOR EXAMPLE, WE HAVE A RACHEL EMERGENCY MANAGEMENT OFFICER THAT WE SHARE WITH THE OTHER THREE. THAT SOUTHWEST CITY SO WE GET A PORTION OF HER SALARY BACK FROM THEIR SHARE. UM CDBG OFFICER THAT WE FUNDED THE COUNTY, UM, GET THEIR REIMBURSEMENT. ALSO CROSSING GUARDS. WE PAY 100% FOR CROSSING GUARDS DISTRICT PAYS HALF OF THAT PAYS US BACK REIMBURSING US FOR 50% OF THAT. WE ALSO RECEIVED MONEY FROM THE COUNTY FOR THESE FEED THAT'S APPLIED TO THE REGISTRATION REGISTER YOUR VEHICLE FOR, UM PRETTY MUCH FOR CROSSING GUARD SAFETY, CHILD SAFETY, SO THAT ALSO COMES TO THE CITY. SO BETWEEN THOSE TWO SOURCES, WE DO 100% COVER THE COST OF THE CROSSING GUARDS, SO THAT'S WHAT GOES INTO THE

[02:35:02]

THIS IS AN AREA TO FOR US TO LOOK AT. THE NUMBER HASN'T CHANGED RIGHT NOW DIDN'T REALLY HAVE A GOOD NUMBER TO ESTIMATE BUT AS INTEREST RATES TO GO UP AND LOOK AT OUR INVESTMENTS AND ALLOCATE NO INTEREST ACCORDINGLY . UM DISMEMBER, POTENTIALLY COULD CHANGE. UM THE FRANCHISE FEE REVENUE CATEGORY. SO THOSE WOULD BE, UM, WE RECEIVED FRANCHISE FEES FOR USE OF RIGHT AWAY FROM UTILITIES. YES, SIR. WELL FRANCHISE THINGS LIKE BECAUSE MY QUESTION WE'VE GOT THAT TURNING UP BUT FRANCHISE THIS IS TRENDING DOWNWARD OVER THE LEFT SEVERAL YEARS. YES SIR.

SO WHEN I WAS ESTIMATING THE REVENUES AT THIS POINT, I WAS DOING IT. YOU KNOW, THREE OR ESTIMATES SO AVERAGE, SO YOU KNOW THERE'S DIFFERENT FRANCHISE PIECE THAT WE DO SEE. SO WE GET ONE FOR ATMOS FOR GAS. WE GET ONE FOR ON ELECTRICITY BETWEEN THOSE TWO KIND OF YOU KNOW, LOOKING AT THE THREE YEAR AVERAGE OF WHAT WE'VE RECEIVED, THAT HAS BEEN HIGHER AND OF COURSE, THAT IS OBVIOUSLY A BIG FACTOR COULD BE THE WEATHER AND HOW MUCH ELECTRIC GAS WE'RE USING IN THE WINTER WHEN WE HAVE CRAZY COLD MONTHS OR HOW MUCH ELECTRICITY YOU USE, SO THOSE ARE BASED ON GROCERY SEATS AND, UM SO THAT CAN REALLY FLUCTUATE DEPENDING ON USAGE. UM, THE OTHER SOURCES OF FRANCHISE REVENUE IS CABLE. SO THAT WOULD BE THE CHARTER SPECTRUM. I HAVE SEEN THAT KIND OF TRENDING DOWN IS LESS PEOPLE ARE BUYING CABLE STREAMING STREAM SO THAT IS TURNING DOWN AND THEN THE FOURTH ONE IS THE TELEPHONE UTILITIES. AND, OF COURSE, THAT IS DEFINITELY BEEN GOING DOWN. QUITE A BIT BECAUSE YOU KNOW WHO'S GOT LANDLINES ANYMORE. SO UM, I'M SORRY. MY GRANDMA STATEMENT. ON THE WHOLE NOT MANY , SO WE'RE NOT GETTING MUCH FROM HERE. CHARGES FOR SERVICES, SO THAT WOULD BE YOU KNOW THE RENTALS FOR PARKS FACILITIES THAT WOULD BE MEMBERSHIPS, THE WRECKS AND OUR SENIOR CENTER. TRANSFER FROM OTHER FUNDS CATEGORY. UM, SO IT IS A COMMON PRACTICE FOR CITIES AND TO HAVE PUBLIC ADMINISTRATORS BEING ALLOCATION BE RECHARGED TO OTHER FUNDS LIKE THE UTILITY FUND. TO, UM. ECONOMIC DEVELOPMENT HOTEL MOTEL IS OTHER FUNDS FOR ADMINISTRATIVE PURPOSES, SO THERE'S A WHOLE ALLOCATION OF THE MODEL THAT WE USE TO DETERMINE THAT THE COST OF THAT SO YOU KNOW, USING THE BUILDING INVOICES THAT YOU KNOW, UM FINANCE DEPARTMENT PROCESSES ON THAT THEY HAVE OF THAT. YOU KNOW THE HR. THE HIRING PERSONNEL, ALL THAT STUFF LIKE THAT GOES ALONG WITH OPERATING THE FINDINGS. IT IS LIKE YOU KNOW THOSE FUNDS. DO SO WE CHARGE MINISTRATIONS ALLOCATION FROM THOSE FIVE AND THEN LASTLY, OTHER SOURCES THESE WOULD BE YOU KNOW, LIKE MISCELLANEOUS REVENUES WITH VERY SMALL CATEGORIES THAT YOU KNOW. I DON'T LIKE HAVING LARGE AMOUNT THAT WE WERE SEEING, SO IT'S KIND OF GROUPED INTO THE OTHERS SO OVERALL BASED ON WHAT I SEE TODAY, UM, LET ME ACTUALLY GO BACK TO THE SALES TAX. SO WE TALKED ABOUT HAVING A 3% INCREASE, YOU KNOW IS FORECASTED. WHAT I HAVE PLUGGED IN HERE CURRENTLY IS ACTUALLY ONLY ABOUT 1.5% EXTREMELY CONSERVATIVE. UM SO THERE COULD BE SOME MORE ROOM ACTUALLY, FOR THAT NUMBER TO GO UP. UM JUST YEAR TO DATE, WE'VE RECEIVED FIVE PAYMENTS SO FAR FOR THIS FISCAL YEAR FOR, UM PURCHASES WITHIN THIS FISCAL YEAR, AND WE'RE ALREADY 6% ABOVE WHERE WE WERE AT THIS TIME LAST YEAR TO GIVE YOU AN IDEA AGAIN, HOUSEHOLDS TAXES PERFORMING ONE COMMENT. PLASTIC FIVE ON INTEREST. BASICALLY STAGNANT. I WAS INVOLVED IN A DIFFERENT.

ECONOMIC CONFERENCE TODAY. THE REST OF THE MAJOR 2023 AND THE FINANCE YEARS ARE ESTIMATING THAT FOR THE REMAINDER OF 2023, WE WILL EXPERIENCE THEM WITH A RECESSION. AND THEY PUT THAT IN THREE CATEGORIES. SMALL AVERAGE OF LARGE SAYING THAT PROCESSION FOR THE REST OF 2023. AND THAT'S BASICALLY BECOME FROM REGIONAL BANKS REAL ESTATE BECAUSE THEY'RE IN THE TANK. IF YOU HAVE ANY INVESTMENTS IN REGIONAL BANKS THAT MIGHT WANT TO GET RID OF THEM NOW. BECAUSE THE REGIONAL MEXICAN VERY, VERY HARD HIT BY THIS AND ALSO BUT FOR REAL ESTATE, BUT THEY SEE THAT LOOKING AT THE S AND P LOOKING DOWN LOOKING AT THE RUSSELL 5000. THINGS COULD GO SOUTH. SO LOOKING AT OUR INTEREST RATES AND KNOW HOW WE HOW WE INVEST VESTED VERY CONFIDENT RATES PEOPLE VERY, VERY LOW RISK. I THINK, LOOKING AT THAT KEEPING IT STABLE, GOING DOWN THROUGH

[02:40:02]

WHAT WE BATHED WAS JAIL, UM, COUNTY TO COLLECT OUR PROPERTY TAXES. ESSENTIAL APPRAISAL DISTRICT TWO TALKING ABOUT USE THINGS LIKE THAT. WE HAVE A LOT OF PARTNERSHIPS. UM BE ABLE TO DO WHAT YOU KNOW WE CANNOT DO OURSELVES. SO THAT BIG PERCENTAGE THAT'S THE SECOND LARGEST CATEGORY AND THEN THE REST, YOU KNOW, SUPPLY MATERIALS . YOU KNOW THE UTILITIES KEEP THE LIGHTS ON THE BUILDING. WE DON'T HAVE ANY DEBT SERVICE CURRENTLY AND THEN A SMALL AMOUNT THAT ACTUALLY GOES OUT INTO OTHER FUNDS. UM WHAT KIND OF HELP VISUALLY LOOKS. BY THE NUMBERS BY DEPARTMENTS. I'LL EXPLAIN THE ASSUMPTIONS HERE IN A MINUTE. UM AND OBVIOUSLY AGAIN , THIS IS A PRELIMINARY BUDGET. UM OUR GOAL DEFINITELY IS WHEN WE PROVIDE YOU THE FINAL BUDGET . YOU KNOW, JULY WE WILL BE ABOUT BUDGET. UM, WE STILL HAVE TO CALL ME TO DO TO GO THROUGH.

BUDGET SO AS YOU CAN SEE HOW IT KIND OF BREAKS DOWN BY DEPARTMENT EXPLAIN AGAIN? WHAT FACTORED INTO THESE NUMBERS. UM BUT JUST SOMETHING TO NOTE FROM A NET REVENUE, YOU KNOW, FROM OUR ACTUALS. UM FROM LAST YEAR AND 22. WE ATE YOU. 2.1 MILLION IS GOING BACK INTO THE FUN, OF COURSE, SPENDING THE COMPLETE AUDIT TO CONFIRM THAT, BUT OUR REVENUES CAME IN MUCH HIGHER. IN OUR EXPENSES CAME IN POWER HAVE ABOUT 2 MILLION GOING BACK INTO THE FUND. SO ASSUMPTIONS WE KIND OF TALKED ABOUT. YOU KNOW THE SECOND HALF OF THE CONFIDENCE STUDY COMPENSATION STUDY. WE TALKED ABOUT BRIEFLY SERVICE CREDITS AND GOALS AND THINGS LIKE THAT, UM, THE NUMBER ONE AND NUMBER TWO THINGS THAT FROM STAFF FROM DEPARTMENTS FROM WHAT WE'VE HEARD THAT IS MOST IMPORTANT, YOU KNOW, FROM A YOU KNOW, A REQUEST TO YOU GUYS IN TERMS OF WHAT WE BUILD INTO OUR BUDGET. DO THAT SECOND PHASE OF THE COMPETITION STUDY AS WELL AS, UM A PORTION OF TRYING TO DO AT LEAST THE MINIMUM AT HOCKEY. IN TEXAS FOR RETIREMENT AND STUFF. UPDATED SERVICE CREDITS THE UPDATED SERVICE CREDITS PIECE OF IT IS VERY MINIMAL COST . CALL IT GET MORE EXPENSIVE, SO SEEING HOW THAT ALL FACTORS INTO HOW THAT WOULD LOOK INTO OUR BUDGET. SORRY. PLUG THAT INTO ANOTHER PERSON. UM SOME OTHER AREAS OF WHERE THE TOTAL IMPACT UM ONE POINT FINALLY, SO THAT ALSO INCORPORATES PHASE ONE. PUSH THE PACE TO IN OCTOBER THIS FISCAL YEAR. 24 IS THE FIRST YEAR TO SEE THAT FULL EFFECT THAT MAKES SENSE SO ONE AND TWO. HAVE IMPACTS ABOUT 1.5. TO THE BUDGET. SOMEWHERE IN MY. BE ABLE TO EDUCATION IN PAST YEARS WHEN WE TALKED ABOUT SPEECH. I WAS TAUGHT THEM ONCE IT'S HIM IMPLEMENTED CAN BE REPEALED. GENTLEMEN TODAY SAID IT CAN BE REPEALED. SO. THAT'S WHAT I WAS TALKING LONG TIME AGO CORRECTLY CAN BE REPEALED BY COUNCIL.

[02:45:04]

WELL IT'S ABOUT ASSUMPTION. SO I'M LOOKING AT THE S, W. R. C C AND $100,000. FOR A YEAR.

LOOKING AT RACHEL GELATIN $40,000 A YEAR. ANOTHER PRIEST. SIGNIFICANT INCREASE ONCE WE AGREE HE KNEW IT. JUST JAIL. THAT WAS THE AGREEMENT MEAN YES , I AM NOT DISAGREEING WITH THAT , BUT IT STILL LOOKS LIKE A PRETTY GOOD INCREASES. FOR IN TRYING TO OTHERS. WHAT'S THE JUSTIFICATIONS ON THE INCREASES A, UM WE TALKED ABOUT HEALTH AND INCREASED THEIR SALARIES IS HELPING TO BE FOR THOSE EVENTUALLY. ALSO IN THE CAPITAL THINGS THAT YOU KNOW THEY'RE WORKING TOWARDS AS WELL. UM IT'S KIND OF BRINGS, YOU KNOW TO LOOKING AHEAD AND THINGS THAT ARE NOT FUNDED AT THIS TIME. THERE HAVE BEEN GIVING US A HANDS UP ON SO THEY NEED UPDATING CAT. THAT'S THERE. UM AM I ALWAYS FORGET WHAT IT'S CALLED? THAT'S RIGHT. THANK YOU.

SYSTEM. THAT'S ABOUT 6.5 MILLION. YOU KNOW, DOLLAR SYSTEM THAT THEY'RE GOING TO NEED TO REPLACE. AND SO OUR SHARING THAT ESTIMATING AT THIS POINT FOR THE NEXT TWO YEARS ABOUT $650,000 THAT WE'RE GOING TO HAVE TO FIGURE OUT. DAD OR SOME OPTIONS LIKE THAT TO PAY FOR HER TO COVER THAT. NOTHING IS NO SET IN STONE YET ABOUT IT, BUT THAT IS SOMETHING THAT THEY PRESENTED MANAGERS TO TALK ABOUT ANOTHER THING IS THAT THEY WANT TO BUILD A NEW BUILDING THEIR DISPATCH BUILDING WITH ALL THE COSMETICS AND EVERYTHING THEY ESTIMATE ABOUT 16 MILLION, SO THAT'S PROBABLY THE NEXT FIVE OR SO YEARS THAT THEY'RE LOOKING FOR THEM TO DO THAT. SO THAT'S KIND OF LOOKING. AND THAT'S JUST, YOU KNOW, JUST PATCH. UM SO I KIND OF LOOK AT SOME OPPORTUNITIES, AT LEAST THAT MIGHT HELP. THESE ARE VERY IMPORTANT TO YOU WANTED TO MAKE HIM OUT HERE AND JUST SO YOU KNOW, IN YOUR HAND OUT IF YOU DID. DID PROVIDE YOU A COPY OF THE MAYOR AND COUNCIL BUDGET

[02:50:02]

WHAT'S IN YOUR BUDGET SO YOU CAN LOOK OVER THAT, LIKE SOME FEEDBACK. UM BUT YOU'RE TALKING ABOUT 50,000 FOR TREATS AND SOME DEVELOPMENT OPPORTUNITIES AS WELL. UM OR TRAINING AND CONFERENCES FOR EACH OF YOU TO CHOOSE PARTICIPATING, SO THAT'S BUILT INTO YOUR PLAYING THE COUNCIL BUDGET BACK TO SURE ABOUT YOUR BRIEFING. THERE IS SOME FEELING ACROSS OFFICE.

THEY'RE ALL FACE. YEAH, IT IS A GRAM. THAT TO ME. IT'LL BE FUN. SOME PEOPLE SAY WELL, NOT GETTING EVERYTHING BECAUSE I HAVE AN HONEST DO THIS, AND I HAVE SOME CITIES ARE SAYING I'M NOT SO SURE THAT IT WASN'T DEFINITIVE. IT'S JUST LIKE SOMEBODY THINKING ABOUT. WELL MAYBE I DON'T NEED THE CARES AND I DON'T KNOW WHERE WERE THE BEST SONG. OF COURSE, WE'RE NOW JOKED INTO THAT THAT I SAYING FORWARD SUPPORT. CARE. YES SIR. SO, BASICALLY AS YOU GRANT IS GOING TO TAKE US THROUGH. WATCH RIGHT THAT FUNDING. APRIL SEPTEMBER. OKAY? SO NEXT YEAR. EVERYBODY NOT COMMITTED. THAT POINT. YEAH EXAMINATION. THAT'S CORRECT. YEAH. IT WAS JUST SOME OPPORTUNITIES TO THINK ABOUT THAT. WE'RE GOING TO LOOK AT A STAFF. I'M SORRY. WE AS A COUNCIL THIS IS A PREVIOUS DISCUSSION TALKED ABOUT TEDIOUSLY PEOPLE AND OUR PEOPLE.

ADJUSTMENT PEOPLE. WEREN'T GETTING ENOUGH TRAINING. EVERY ONE OF THEM TO BE PROVIDED ADDITIONAL TRAINING. SO ARE THOSE DOLLARS. YEAH THAT COUNTS. TRAINING SLASH CONFERENCES THAT STRICT BECAUSE CONCENTRATE JUST CANCELED. THERE IS FUNDS AND I DID CREDIT ON THE ESPECIALLY FOR MAYOR COUNCIL. THAT IS FOR BOARDS AND COMMISSIONS. OKAY VERY, VERY NECESSARY. THEY WEREN'T GETTING ENOUGH TRAINING. WE JUST HAVE TO MAKE SURE WE'RE IDENTIFYING WITH THEM. YOU KNOW DIFFERENTLY THAT IS THERE AND MAKE SURE THEY KNOW THEY CAN GO. INVITATION, PLEASE. SO LET ME ACTUALLY BEFORE IT GETS AN OPPORTUNITY. SO AGAIN, THESE ARE ASSUMPTIONS THAT ARE ALREADY BUILT INTO THE BASELINE BUDGET TALKED ABOUT SECOND PHASE OF THE COMPENSATION CITIES. THAT WAS OUR NUMBER ONE GOAL. WE TALKED ABOUT UPDATED SERVICE CREDITS AT LEAST JUST AD HOC UPDATED SERPENT ONLY BECAUSE THAT WAS ABOUT BUT THOSE TOGETHER THAT IMPACT IS 1.5 MILLION. SO LIKE I SAID, YOU KNOW, WE'RE LOOKING AT THIS PRESENT TO YOU A BALANCED BUDGET. CONTINUE TO LOOK AT REVENUES AND SOLIDIFY EXPENSES THAT HOPEFULLY WON'T GET THAT TO A ZERO BECAUSE THAT WERE ABLE TO AFFORD THOSE CHANGE. SO OPPORTUNITIES THINK THAT WE'RE DIFFERENT TO LOOK AT THIS YEAR BEFORE WE BRING THE BUDGET BACK TO YOU, UM, APPROVAL. SO, MASTER PETE DEFINITELY WANNA MAKE SURE WE'RE LOOKING AT A MASTERPIECE THAT WEREN'T CHARGING THINGS APPROPRIATE OPPORTUNITY AREA AND LOOKING AT INSPECTION. WHAT? WE'RE TRYING TO FERMENTS AND THINGS LIKE THAT COMPARE OURSELVES TO OTHER CITIES AND WHAT THEY'RE CHARGING. HE WAS THIRD PARTY INSPECTOR, REALLY SUBSIDIZING THE PURPOSE. IF YOU WILL, KIDS ONCE YOU KNOW THEY'RE NOT CAME. WHAT CAMPAIGN FOR THAT SORT OF PARTY INSPECTOR. SO THINGS LIKE THAT TO ENSURE THAT WE'RE TARGETING WHAT WE NEED TO CHARGE BUT NOT OVERCHARGE. OTHER SPECIAL EVENTS LOOKING AT HOW WE CAN, YOU KNOW, FIND SOME ALTERNATIVE SOURCES TO OPERATE SOME OF THOSE EXPENSES WHEN WE DO SPECIAL EVENTS. OBVIOUSLY DONATIONS SOMETHING WE TALKED ABOUT IN THE PAST HAVE FORMALIZED PLAN OF DONATIONS IN THAT KIND OF CAN HELP OFFSET SOME OF THESE EVENTS AND THINGS LIKE THAT. BE AGGRESSIVE WITH GRANT FUNDING. WHAT'S OUT THERE, DEDICATED LOOKING FOR WHAT WE CAN GET GRANTS. THAT. AN OPPORTUNITY TO HELP OFFSET SOME OF THOSE ONE TIME CONSTRUCTION TYPE COSTS. SO. THAT IS AT HIGH LEVEL CURRENTLY FOR THE GENERAL. DO YOU HAVE ANY QUESTIONS AT THIS POINT ABOUT THAT? SO ENTERPRISE FUNDS. SO THOSE ARE THE FUNDS UTILITY FUND. SANITATION FUND FIELDHOUSE.

THOSE KIND OF FUNDS THEY ARE SELF SUSTAINING FUNDS YOU HAVE CHARGED FOR SERVICE EXPENSES COME OUT OF THAT. UM SO WATER SEWER. SO I DIDN'T GO INTO DETAIL HERE FOR ALL THE TIME EXPENSE TYPES, BUT SO WHAT'S ASSUMED AND THE UTILITY FUNDS? UM IS THE SECOND YEAR OF THAT RATE, UM, PASSED ON ITS LAST YEAR FOR A FIVE YEAR RIGHT INCREASE. YOU KNOW WHEN YOU'RE AT A TIME, SO THOSE RATES ALREADY BACK 10 TO 11. OOH, THERE. FROM A COST STANDPOINT,

[02:55:03]

UM 21 MILLION. OF COURSE WE CAME TO YOU THE COUNCIL SAYING, HEY, WE'RE NOT DOING THAT. SO I NEED THREE MORE MILLION, YOU KNOW, TO HELP OFFSET UTILITY. UM, C I P PROJECT, SO A LOT OF THAT, BECAUSE OF THAT TRANSFER THAT'S BUILT INTO THE EXPENSE. OKAY IT'S NOT THE OPERATIONAL NECESSARILY PEACE. YES AND ALSO WITH BUILT IN TO EXPENSE. YEAH THIS CURRENT YEAR, UM, TRANSFERRED A MILLION AS WE'RE STARTING TO GEAR UP, YOU KNOW? AM I IN THE NEW YORK FUTURE, SO FOR ME TO REPLACEMENTS AND STUFF, SO WE STARTED TO FIND THIS CURRENT YEAR TO START PUTTING MONEY INTO THAT. UM, NEVER. SO, UM THAT'S AWESOME FACTOR INTO THAT. AND OF YOUR PROJECTION. TO MAKE IT SEEM HIGHER. SANITATION FUNDS. UM ASSUMPTIONS THERE. WE HAVE FIVE TIME QUITE ONE THAT ARE ACTUALLY ON THE SANITATION. PROBABLY SEEN ONE PLAYING THE FARMS AND STUFF IF YOU'RE A GREAT JOB WHAT'S ASSUMED HERE IS A DON'T KNOW WHAT THE RATES ULTIMATELY WILL BE WITH REPUBLIC, BUT SO ABOUT 4% CP, I INCREASE FOR THE TRASH COLLECTION AND ABOUT 5% ON THE LANDFILL PIECE. SO WITH THAT, UM INCREASED CUSTOMER RATES BY 2% WHICH TO OFFSET THAT CP I INCREASED, SO THAT COMES TO ABOUT HALF CENT OR HALF A DOLLAR FOR CURBSIDE PER MONTH, A LITTLE OVER HALF A DOLLAR FOR ALLIE CUSTOMERS PER MONTH AND THEN COMMERCIAL, UM, $2 A MONTH. AND THAT'S WHAT 2% RATE INCREASE WILL DO, AND THAT WILL UM, SUSTAIN IT WITH. INCREASE IN THE TRASH AND THEN MAKE CONTINUES TO TRANSFER FUNDS INTO THE ALLEY C I P SO CUSTOMERS HAVE A HIGHER RATE BECAUSE PAY HELP PAY THOSE ALLEYS REPLACEMENTS WHEN THEY COME TO YOURSELF. THE SANITATION FUND SUPPORTS. ANY QUESTIONS THERE? I DON'T KNOW WHY HE THINKS PERFECT BACK COMPANY USUALLY SURFACE. WATER FEED RUNOFF. WHERE DID THAT COME IN STORM WATER THAT'S IN THE DRAINAGE. NOT IN THE SUPER GET TO THAT ONE SECOND. THAT'S ALL I WANT TO GO OVER ON ENTERPRISE FUNDS. I'M NOT TALKING ABOUT EVERY FUN TONIGHT. JUST THE BIG ONES. SO SPECIAL REVENUES, THE REVENUES THAT OBVIOUSLY YOU CAN ONLY BE USED FOR SPECIAL PURPOSE LIKE ECONOMIC DEVELOPMENT, HOTEL MOTEL DRAINAGE, FINEST CATEGORIZES, ESPECIALLY FIND AT THIS TIME. SO IT'S REALLY HITTING ON HISTORY. HOTEL MOTEL. UM NOTHING REALLY IS CHANGING THERE. BUT IT'S DEFINITELY AN

[03:00:03]

THEY'RE FUNDED BY HALF CENT SALES TAX. I JUST LOOKED LIKE THAT THEIR THEIR EXPENSES. UM SO WE HAVE FIVE FULL TIME EQUIVALENTS AND THE ECONOMIC DEVELOPMENT SO YOU KNOW, WE HAVE ONE BEAUTIFICATION. AND SOME SEASONAL HELP AS WELL AS ECONOMIC DEVELOPMENT STAFF. UM, SO THERE PROPOSING 2.1 MILLION AND INCENTIVES. SO THAT'S SUCH AS THE BIG REALIZATIONS OF THE BIG SHOPPING CENTERS AS WELL AS OTHER, UM, IT'S ODD AND SAVING ALL THOSE DIFFERENT KIND OF GUYS AS WELL AS A COMMUNITY. UM INSTEAD OF SO FAR THEY WANT TO MODERNIZATION TOOL SHED.

PROJECT. AND THEN, UM, ECONOMIC DEVELOPMENT SUPPORTS ALL OF OUR BEAUTIFUL FLOWERS THAT YOU SEE OUT RIGHT AWAY AND OUR PARKS SO . 23 MONTHS, SO THAT IS THE STORM WATER WHEN WE COLLECT STORMWATER FEES OF $3.50 EVERY MONTH COMES FROM RESIDENTIAL SOMETHING WE HAVE THE IMPERVIOUS CUSTOMERS AS WELL THAT PAY BASED ON THE SIZE. UM SO WE HAVE THREE FULL TIME EQUIVALENTS IN THAT FUND. CURRENTLY ALL BACON BUT WE DO FIND THREE POSITION. HOW'S THAT FUND FOR STORMWATER STREET FAIRS, SO WE'RE NOT PROPOSING ANY STORMWATER FEW CHANGES, BUT WE ARE GOING TO LOOK AT THOSE FEES TO MAKE SURE WE CHARGING WHAT WE NEED TO BE CHARGING. UM ARE WE COMPARABLE TO WHAT OTHER CITIES DO? OUT OF THE DRAINAGE POND IS WHERE WE PAY FOR THE STREET, SWEEPING UM, SO ALSO WITHIN THE DRAINAGE FINE IS ALSO THE C I P PROJECTS THAT ARE WITHIN THREE AND INCH, SO SOME OF THE UPCOMING PROJECTS TAMAL CREEK IS A BIG ONE. HAPPENED IN THIS NEXT YEAR, ALREADY TALKED ABOUT SWAN RIDGE SO GETTING THAT THIS YEAR BUT MOST OF IT WILL BE INCURRED NEXT YEAR AS WELL AS WHY ALI PROJECT THE BIG THREE OF THAT. THE QUESTION ON THAT ONE SO FAR. BUT I'M NOT GONNA GO OVER ANY OF THE OTHER SMALLER FUNDS, BUT I DID GIVE YOU A FUN SUMMERY OF EVERY FINAL THESE REVENUES AND THE EXPENSES AND AGAIN. A LOT OF THEM ARE PRELIMINARY, AND WE'LL BE COMING BACK TO YOU ON CAPITOL PIECE FUTURE SO. ANY QUESTIONS, ANY FEEDBACKS? ANYTHING WE NEED TO KNOW OR EVEN COOPERATE OR OR, YOU KNOW, THESE ARE WE HAVE MISSED AND HAVE TALKED ABOUT.

TODAY IS A LOT OF INFORMATION AND ABSOLUTE MARINATE. WELL I WILL MAKE ONE COMMENT. GRANT FUNDING. BY THE WAY, GUYS. I'M HOPING THAT WE ARE OPPORTUNITY GRANTS AND TRY TO TAKE ADVANTAGE. POSSIBLE. YOURSELF. I HAD AN OPPORTUNITY TO, UH, YOU KNOW THAT YOU MENTIONED THIS PREVIOUSLY THAT DID HAVE A MEETING ON LAST FRIDAY WITH A COMPANY THAT HAD PRESENTED PERFORMANCE SERVICES LAST TIME, SO YOU COULD BE SURE TO WORK. FOR IS THERE ROOM IN OR PLANNED, INTRODUCED REVOLVING. PMR S. SO WE'LL HAVE TO COME BACK TO YOU WITH THOSE ESTIMATES LIKE I DID.

I WENT AHEAD AND BUILT BUILT IN 100% 1 BECAUSE IT'S ABOUT 300,000 TOTAL. UM WHAT WE'LL HAVE TO BRING THOSE NUMBERS BACK TO YOU. SO YOU CAN SEE WHAT THOSE COSTS ARE GONNA ACT, COLA'S OR DO ANY OTHER VARIATIONS. SO YOU KNOW WHAT THOSE COSTS ARE? ANYTHING ELSE? FIRE APPARATUS THIS YEAR. SO THEY GET MARRIED FIRE APPARATUS. OUR NEW QUINT THAT WE HAVE RIGHT NOW IS THE 2017. THANK YOU THEM IN LINE 14 YEARS, SO IN 2027, WE SHOULD BE RECEIVING THAT DUDE APPARATUS TO BE ABLE TO ORDER THAT THING. YOU GOTTA GO FREE. 2022. IT'S GONNA BE ABOUT 1.51

[03:05:01]

MY PERSONAL PERSPECTIVE. I HOPE THE QUESTIONS ASKED PART TAKING US ANYBODY BEING OFFENDED OR I'LL TAKE THE FIRST DOMINANT MENTIONED THIS LAST CITY COUNCIL MEETINGS ARE FIDUCIARY RESPONSIBILITY, COUNCILOR MANTLE OF RESPONSIBILITY POSSIBILITY. SO WHEN WE LOOK AT THE DOLLARS THIS IS REALLY WHEN IT COMES TO, PLUS JENNIFER AND STAFF EVERYBODY EVERY SINGLE DEPARTMENT. CONTRIBUTED MANY OF US LATINA FOR SURE HAS DONE INTO IT AND RIDICULOUS. THANK YOU.

THANK YOU, EVERYONE. THAT'S RIGHT, ADJOURNED FROM THE RECORD. LITTLE TIMESTAMP

* This transcript was compiled from uncorrected Closed Captioning.