THERE WE GO. WE SHOULD GO LIKE THIS. OKAY, SO WE'LL GO AHEAD AND GET STARTED. THANK YOU.
[00:00:10]
FIRST OF ALL, THANK YOU ALL FOR BEING HERE TONIGHT. I DO THINK WE'VE GOT A FEW MORE THAT WILL PROBABLY BE COMING, BUT I CAN GET STARTED. I SENT AN EMAIL OUT ABOUT PROPOSED SCHEDULE. WE HAD TO FLIP FLOP POLICE AND PUBLIC WORKS FOR TONIGHT. SO WHAT I'D LIKE TO PROPOSE TO YOU IS WE HAVE A BUS OUT FRONT. I'D LIKE TO DO SELECTION OF CHAIR AND VICE CHAIR, AND THEN TAKE YOU FOR A LITTLE ROAD TRIP TOUR OF THE SERVICE CENTER, AND THEN COME BACK HERE AFTER WE DO THAT.IF EVERYBODY'S OKAY WITH THAT. SO IF WE COULD GET STARTED SO THAT WE CAN OFFICIALLY HAVE YOU GUYS ALL SET UP AND READY TO GO. THE SELECTION OF A CHAIR, VICE CHAIR AT THIS POINT WOULD CERTAINLY ACCEPT NOMINATIONS FOR THE POSITION OF CHAIR. COULD BE ANY ONE OF YOU. YOU DO HAVE TO BE PRESENT TO VOTE. YOU DON'T HAVE TO BE PRESENT, I GUESS OFFICIALLY TO BE NOMINATED. BUT AND IDEALLY IT WOULD BE SOMEBODY WHO IS ON THE COMMITTEE. IT SHOULD BE SOMEBODY WHO'S ON THE COMMITTEE. SO IF ANYBODY HAS ANY, I'D LIKE TO NOMINATE MR. HARVEY IF HE WOULD ACCEPT IT. I WILL ACCEPT. THANK YOU VERY MUCH. ARE THERE IS THE NOMINATION? THANK YOU. ARE THERE ANY OTHER NOMINATIONS? NOT EVERYBODY WAS. ALL RIGHT. WELL, SINCE WE HAVE NO OTHER NOMINATIONS, ALL THOSE IN FAVOR OF, I GUESS LET'S OFFICIALLY CLOSE THE NOMINATIONS FIRST. AS LONG AS EVERYBODY IS OKAY WITH THAT. AND THEN IF EVERYBODY WOULD. GIVE A MOTION ON YOUR NOMINATION AND A SECOND. SO I GUESS OFFICIALLY, IF WE COULD HAVE A VOTE ON THE NOMINATION OF MR. HARVEY BEING THE CHAIR. ALL RIGHT. YOU HAVE ENOUGH PEOPLE TO STEP BACKWARDS THAT.
CONGRATULATIONS. THANK YOU. I WAS THINKING THAT IT CAUSED HIM TO. WELL, ON THAT NOTE, MR. CHAIRMAN, WOULD YOU LIKE TO TAKE OVER FROM HERE AND SELECT A VICE CHAIR? I WOULD, SO THANK YOU ALL VERY MUCH FOR YOUR SUPPORT AND WHAT WE ARE GOING TO DO AT THIS TIME IS TO NOMINATE A PERSON TO BE VICE CHAIR. AND SO. I GUESS MY QUESTION IS WE SHOULD HAVE HAD AN ATTORNEY. CAN I DO A NOMINATION? SURE. YEAH, YOU CAN DEFINITELY DO THAT. I WOULD LIKE TO NOMINATE ERICA BROWNING TO BE VICE CHAIR ON THE SECOND NOMINATION. SHE WON. LET ME. SO IT'S BEEN MOTION AND MOTION BY MYSELF AND SECONDED BY MARTIN. MR. MR. DOLL, AND DO WE HAVE ANY OTHER NOMINATIONS FOR VICE CHAIR? IF NOT, I WILL CALL FOR A VOTE. ALL IN FAVOR, RAISE YOUR HAND AND SAY I. ALL RIGHT, SO WE HAVE. MISS BROWNING. THANK YOU SO MUCH. CONGRATULATIONS. ALL RIGHT. CONGRATULATIONS TO YOU.
SO. THAT BRINGS US TO ITEM B TOUR OF SERVICE CENTER. SO, MR. CHAIRMAN, IF YOU WOULD RECESS THIS SO THAT WE CAN TAKE A TOUR OF THE SERVICE CENTER, AND THEN WE'LL COME BACK AND PICK UP THE REST OF THE ITEMS WHEN WE GET BACK. OKAY. SO. I WILL ACCEPT A MOTION TO RECESS FOR THIS TIME SO THAT WE CAN TAKE OUR JOURNEY TO THE SERVICE CENTER, AND WE WILL PICK UP WITH THE AGENDA WHEN WE RETURN. TO THE PUBLIC IF THEY WANT TO GO WITH US. ALLOWED TO JOIN US? ABSOLUTELY. PUBLIC TO ENSURE THAT. GIVE ME A SECOND. YES. SECOND. ALL RIGHT. MOVE BY SECONDED BY. MISS.
MALONE, MR. MALONE, I'M HAVING TOUGH ON ME. I'M SORRY. BUT ANYWAY. ALL IN FAVOR I RAISE YOUR HAND. LET'S GO. OKAY, SO WE HAVE A BUS OUT FRONT. FEEL FREE TO GRAB WATER, SNACK, WHATEVER YOU WOULD LIKE. EVERYBODY'S WELCOME TO COME ALONG WITH US. AND I DON'T THINK WE'LL BE TOO TERRIBLY LONG. WE'LL GO THROUGH THE TOUR. PUBLIC WORKS DIRECTOR WILL M
[00:05:05]
SORRY, SIR. WE ARE ON. OKAY, SO WE'LL GO BACK INTO. OUR. HAVING COMPLETED OUR TOUR OF THE PUBLIC WORKS SENATE. NEXT ITEM ON THE AGENDA IS DISCUSSION OF POSSIBLE LOCATION. SO THANK YOU, MR. CHAIRMAN. AND JUST JUST FOR OFFICIAL. IF SOMEBODY'S WATCHING THE VIDEO LATER, IT'S 752 BEFORE RECONVENING. SO WE TALKED A LITTLE BIT ABOUT THIS KIND OF IN THE BUS COMING BACK. BUT YOU KNOW THERE'S A LOT OF BENEFIT TO CENTRALIZING OPERATIONS AS MUCH AS WE CAN. AND WE KIND OF SHOWED YOU THERE AS WE'RE WALKING AROUND THE SERVICE CENTER THAT WE THINK WE HAVE ENOUGH LAND REPURPOSE THAT FACILITY RIGHT THERE. EVEN THE NEW FUEL STATION THAT WE TALKED TO, WE SAW THERE EVEN THE YARD LAYING THAT OUT A LITTLE DIFFERENTLY AND THOSE TYPES OF THINGS. BUT THERE'S STILL PLENTY OF LAND THERE. SO OUR RECOMMENDATION TO YOU IS THAT WE KEEP THE SERVICE CENTER AT THAT LOCATION. ALL RIGHT. SO ANY QUESTIONS FOR THE CITY MANAGER ABOUT THE INFORMATION HE JUST SHARED. ALL RIGHT. YOU SAID THE AMOUNT WAS 12. WHAT THEY WERE THINKING. YEAH. SO AND AGAIN THIS IS WHAT WAS IT'S ALREADY WHAT WE ALREADY HAVE. OR BALLPARK. WHAT I WOULD SAY IS WE'RE THINKING IT'S GOING TO BE IN THE 10 TO 12 MILLION TOTAL COST CONSTRUCTION. PROBABLY JUMPING AHEAD A LITTLE THERE IF YOU DON'T MIND. I'LL JUST. OH, OKAY. I'M SORRY. NO NO, NO.YOU'RE GOOD, YOU'RE GOOD. YOU WANT TO OPEN THE DISCUSSION ON THE NEXT ONE THERE. OKAY. ALL RIGHT. SO. IT TURNS OUR ATTENTION OVER TO ITEM D DISCUSSION OF POSSIBLE FACILITY MR. FINCH. THANK YOU SIR. SO WE TALKED A LITTLE BIT ABOUT THIS AS WE WERE DOING THE TOUR WITH PUBLIC WORKS DIRECTOR BRYANT. BUT WHAT WE HAVE TENTATIVELY BEEN LOOKING AT IS UTILIZING THE STEEL FRAME STRUCTURE THAT IS THERE FOR THE GARAGE BAYS, EXPANDING THAT A LITTLE BIT. AND THEN WHAT WE WOULD HAVE TO DO AND YOU SAW IT, WE'D HAVE TO BUILD A NEW ADMINISTRATION WING.
A LOT OF THE SERVICE CENTER NOW, BUT THAT IS THE MAIN BAYS ARE GENERALLY PRETTY HIGH FOR THE BIG TRUCKS AND ALL THE BIG EQUIPMENT AND EVERYTHING ELSE. I THINK THERE IS A DIAGRAM. I THINK THERE'S A FLOOR PLAN FROM THE FACILITY NEEDS ASSESSMENT THAT'S IN YOUR BINDER. BUT COMING OUT, COMING FORWARD AND THEN ADDING THAT ADMINISTRATION WING ON ON THE FRONT SO THAT THE PUBLIC CAN USE IT IN THOSE SORTS OF THINGS. BUT CHAIRMAN, I TURN BACK TO I'M JUST KIND OF CURIOUS IF ANYBODY WANTS TO SHARE THEIR THOUGHTS ON THE FACILITY. ALL RIGHT, MR. BROWNING? SURE. I WAS JUST CURIOUS. SO ALL OF THOSE VEHICLES THAT ARE NOW GOING TO AUCTION AND THE OTHER VEHICLES THAT ARE NOT GOING TO AUCTION, YOU WANT MOST OF THAT INSIDE? I MEAN, OBVIOUSLY NOT THE AUCTION VEHICLES, BUT YOU'RE THINKING ABOUT MAKING THAT INSIDE. SO CAN THAT SPACE BE UTILIZED FOR THE NEW BUILDING? IT CAN. SO THE BUILDING COULD POTENTIALLY GO THAT WAY. WE STILL HAVE TO FIGURE OUT WHAT MAKES SENSE IN TERMS OF LAYING IT OUT. IT COULD GO OUT THAT WAY. THERE WILL PROBABLY ALWAYS BE SOME NUMBER OF VEHICLES, BUT NOTHING TO THAT EXTENT THAT YOU'RE SEEING OUT THERE RIGHT NOW THAT WILL BE ON THE OUTSIDE. WE ALSO HAVE VEHICLES SOMETIMES THAT ARE IMPOUNDED BY THE POLICE DEPARTMENT. SOMETIMES THOSE WILL END UP OUT THERE FOR SECURITY PURPOSES. WE ALSO HAVE ANOTHER LOCATION WHERE THOSE END UP SOMETIMES, BUT YES, THERE IS DEFINITELY AN OPPORTUNITY TO DO THAT. THE OTHER THING THAT WE SAW OUT THERE WAS THAT WASH STATION, THAT WASH BAY. A LOT OF TIMES THESE NEWER BUILDINGS, YOU HAVE THE MAIN WHAT I WOULD CALL THE CORE OF THE BUILDING, WHICH IS THE HIGH ROOF WHERE ALL THE VEHICLES CAN COME AND GO KIND OF ONE DIRECTION THROUGH, AND THEN YOU HAVE LEAN TOS OFF OF IT. THAT ONE MIGHT BE A MECHANIC'S BAY, ONE MIGHT BE A WASH STATION, THOSE TYPES OF THINGS. AND SO WE JUST HAVE TO LOOK TO SEE HOW THAT LAYS OUT. BUT WE CAN DEFINITELY USE SOME OF THAT SPACE BACK THERE. SO ANY ANY OTHER MEMBER HAVE QUESTIONS I NEED CLARIFICATION ABOUT THE TOURS. MR. FINCH, I THINK ONE OF THE THINGS I NOTICED OUT THERE IS THAT THE FACILITY NEEDS SOME ENHANCED BREAK ROOM AREA AND POSSIBLY MEETING TRAINING ROOM SPACE. I DON'T KNOW WHAT THE STATE REQUIREMENTS ARE FOR ALL THE VARIOUS ROLES THAT ARE DOWN THERE, BUT ANY CERTIFICATION CLASSES OR ANYTHING. I WAS
[00:10:02]
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
AT 1616. HAVE THE NUMBERS. THERE YOU GO. YOU GOT IT. PAGE 16. YEAH, YEAH OKAY. SO PAGE 16, YOU HAVE THE SEPARATIONS THERE, RIGHT? YOU'VE GOT THE SERVICE CENTER OFFICE, ESTIMATED AMOUNTS AS WELL AS THE GARAGE ESTIMATED AMOUNTS FOR A TOTAL OF ABOUT 9 MILLION. AND AGAIN THAT WAS DONE LAST YEAR. COSTS GO UP EVERY SINGLE YEAR. THAT'S WHY WE'RE SAYING WE THINK THAT THE COST IS
[00:15:01]
ROUGHLY IN THE 10 MILLION TO 12 MILLION. SHOULDN'T BE ANY MORE THAN 12 MILLION. THE GOOD NEWS IS WE HAVE THAT 2 MILLION TO GO TOWARDS IT. SO WE'D BE TALKING ABOUT $10 MILLION NEEDED AND HOPEFULLY WE CAN GET IT A LITTLE BIT LESS THAN THAT. BECAUSE AGAIN, WE ALSO ARE LOOKING TO TRY TO KEEP THAT A ONE STORY BUILDING INSTEAD OF A TWO STORY BUILDING. I DON'T REALLY THINK THERE'S A NEED TO GO FOR A TWO STORY ON THAT. I THINK WHAT THEY WERE TRYING TO DO IS KEEP USING THE EXACT SAME FOOTPRINT, BUT WE HAVE THE LAND, SO INSTEAD OF USING THE SAME EXACT FOOTPRINT, WE CAN JUST COME OUT FURTHER WHICHEVER WAY, INSTEAD OF GOING UP THE SECOND STORY THERE. SO OKAY. ANY ANY QUESTIONS, MR. ZILKHA, IF WE'RE PAYING INTEREST ON THE, THE PRIOR BOND, CAN WE USE THAT MONEY FOR ITEMS LIKE MAYBE REPLACING THE FUEL PUMPS OR CONCRETE REPAIRS IN THE PARKING LOT OR THINGS LIKE THAT THAT ARE NEEDED THAT ARE OUTSIDE OF THE MAIN CORE AREA AND THAT I DON'T KNOW IF THAT WOULD WHITTLE DOWN ANY OF THE EXPENSES FOR THE EXISTING THE PROPOSED THING THAT WOULD. EXCELLENT QUESTION. AND WE CAN YES, WE CAN DO THAT. SO FOR INSTANCE, WE COULD GO AHEAD AND DO A NEW FUEL STATION. THE ONLY REASON WHY WE HAVEN'T IS WE'D NEED TO DO THE LAYOUT OF THE BUILDING FIRST, TO MAKE SURE WE DON'T PUT THE FUEL STATION WHERE THE BUILDING IS GOING TO BE. SO ONCE WE GET THAT LAYOUT EXACTLY NAILED DOWN, EVERYBODY'S IN AGREEMENT ON THAT. THEN IF THE FUEL STATION STAYS THERE AND IT'S NOT THE WAY WE CAN ABSOLUTELY GO AHEAD AND DO THAT.SO EITHER PREDEVELOPMENT CONCEPT IS GOING TO BE OKAY. RIGHT. EXACTLY. LIKE ALL THAT WE ARE DOING. RIGHT. HAVE YOU MENTIONED THE WATER IS THIS CORE RELATED CREEK OVER THERE OR IS IT THE CORE OF ENGINEERS CREEK OR IS IT WE SHOULD BE ABLE TO STAY OUT OF THAT. THAT IS THAT'S ACTUALLY TEN MILE CREEK THAT GOES ALL DOWN THROUGH THERE. WE SHOULD BE ABLE TO STAY OUT OF THE CREEK, THOUGH. I THINK WE'LL BE OKAY. OBVIOUSLY, WHEN WE DO THE ENVIRONMENTAL, WE'VE GOT TO REFER IT AND ALL THAT STUFF. BUT YEAH, BUT THAT DOES IT SOUND. I MAY HAVE IT MIXED UP. THERE'S ANOTHER ONE. I CAN'T REMEMBER WHICH ONE. BARNETT BRANCH. OKAY, OKAY. I CAN'T KEEP TRACK OF WHERE IT WINDS. TEN MILE CREEK WINES. IT'S SOUTH OF DANIEL DALE, BUT THEN IT WINDS TO THE NORTH, LIKE AT THE LAD, I THINK. AND THEN IT I LOSE IT AFTER THAT, I DON'T KNOW, I JUST SOUTH OF CHAMPIONS COVE. SO. OKAY. OKAY. ALL RIGHT. OKAY. ANY OTHER QUESTIONS ON IT. OKAY. AGENDA ITEM F DISCUSSION OF THE FINANCIAL PICTURE OF THE CITY, MR. FINCH. THANK YOU SIR. SO THE GOOD NEWS IS, AS WE WERE TALKING ABOUT, WE HAVE COMPLETED THE FINANCIAL AUDITS. SO WE WERE ALL UP TO DATE. AND I HAVE SOMETHING TO PASS THAT REALLY GOES OUT TO YOU WITH BOTH F AND G. BOTH. WE JUST RECEIVED THESE TODAY. THIS IS THE. SO THEY'RE NOT IN YOUR PACKETS BUT THIS IS THE REPORT THAT WE GET FROM OUR COMPANY THAT WE WORK WITH OUR PARTNERS IN TERMS OF THE BONDING AND OUR DEBT. HILLTOP SECURITIES. AND THIS IS A REPORT ON BASICALLY THE DEBT OF THE CITY, THE DEBT REPORT, AS WELL AS THE ABILITY OF THE CITY TO TAKE ON NEW DEBT. THE EASIEST WAY THAT I WOULD HAVE TO TELL YOU TO LOOK AT THIS IS AND YOU'RE WELCOME TO OBVIOUSLY GO THROUGH THIS IN DETAIL. AND UNFORTUNATELY, I DON'T KNOW WHY THERE'S NOT PAGE NUMBERS, BUT IF YOU GO TO THE BACK OF THE THIRD PIECE OF PAPER AND THE TOP OF IT SAYS CITY OF DUNCANVILLE 2025 GENERAL OBLIGATION DEBT REPORT. AND IT'S ON THE BACKSIDE. SO THAT. THAT BASICALLY THOSE NUMBERS ARE AS OF THE END OF JANUARY. ASSOCIATED WITH THE AUDIT. IT TELLS YOU THE MARKET EVALUATION ESTABLISHED, BUT PROBABLY ONE OF THE MORE IMPORTANT ASPECTS THAT YOU WANT TO ZERO IN IN IS THAT VERY LAST LINE, THE RATIO OF THE NET GENERAL OBLIGATION TAX DEBT TO TAXABLE VALUE. AND THAT IS 0.45%. THAT IS WHAT THE CITY'S DEBT CURRENTLY IS RELATIVE TO THAT RATIO TO TAXABLE VALUE. SO THE STATE OF TEXAS DOES NOT HAVE A PERCENTAGE THAT THEY SAY YOU HAVE TO STAY IN. HOWEVER, THE
[00:20:07]
BONDING ENTITIES LIKE MOODY'S AND STANDARD AND POOR'S, THEY RECOMMEND THAT YOU STAY SOMEWHERE NO GREATER THAN 6%. THEY LIKE TO SEE THAT A MUNICIPALITY HAS NOT BORROWED MORE THAN 4 TO 6%. SO OBVIOUSLY WE ARE WAY, WAY, WAY LESS THAN THAT AT LESS THAN A HALF A PERCENT. SO THAT'S GOOD. THAT MEANS THAT THE CITY FINANCIALLY IS STRONG. TEXAS DOES HAVE LIMITATIONS ON WHAT THEY CALL THE TAX RATE PER $100 OF ASSESSED VALUE, AND THAT IS THAT NO MORE THAN $1.50 PER $100 OF ASSESSED VALUE. SO FOR COMPARISON, IN 2025, OUR CURRENT TAXABLE DEBT RATE IS THREE AND A HALF CENTS. SO THE MAXIMUM IS $1.50 PER 100. AND OUR CURRENT IS 0.035. SO THREE AND A HALF CENTS. SO AGAIN WE ARE WAY LOW. WE'RE WE'RE NOWHERE NEAR THOSE CAPS EITHER FROM THE BONDING AGENCIES OR THE REQUIREMENTS FROM THE STATE OF TEXAS. WE HAVE RUN SOME. AGAIN I KEEP THROWING OUT THIS NUMBER OF 2025 MILLION JUST BECAUSE WE NEEDED A NUMBER TO PLUG IN TO SHARE WITH YOU GUYS, KIND OF WHAT THAT WOULD LOOK LIKE AT THE $25 MILLION.AND WE'RE GOING TO BE PROVIDING SOME ADDITIONAL DETAIL TO YOU WITH THAT, BUT YOU'RE PROBABLY TALKING ABOUT A MAXIMUM OF $0.08, EIGHT AND A HALF CENTS ON THAT, ON THAT PER $100 TOTAL COMBINED WITH THE CURRENT DEBT. SO AGAIN, YOU'RE STILL WAY LESS THAN THAT $1.50 PER 100. SO YOU HAVE PLENTY OF ROOM UNDER THE CAP IS ALL I'M TRYING TO SAY IF YOU WANTED TO DO IT. SO WE ALSO HAVE FUND BALANCE. YOU KNOW, WE'VE DEVELOPED A NEW FUND BALANCE POLICY. WE'VE GOT A HEALTHY FUND BALANCE RIGHT NOW. THERE'S SOME MONEY AVAILABLE TO THAT. THAT'S ANOTHER WAY TO LOOK AT THIS. THESE THESE DIFFERENT PROJECTS. HOW MUCH IS IN THERE. SO THERE'S IT'S A TOTAL IT'S ABOUT $20 MILLION IN FUND BALANCE. AND I THINK THAT THERE ACTUALLY MAY BE A REPORT IN HERE. BUT I KNOW THAT WE'RE PUTTING IT ON THE WEBSITE. LET ME JUST SEGUE TO THAT FOR A SECOND. IF YOU GO TO THE WEBSITE AND PLUG IN IN THE SEARCH BAR IN THE TOP RIGHT CORNER, 2025 BOND COMMITTEE, WE CREATED A WHOLE NEW PAGE ON THE WEBSITE, AND WE'RE TRYING TO UPLOAD ALL OF THESE TYPES OF REPORTS, THESE DOCUMENTS, AS WELL AS UPDATED FINANCIALS, SO THAT IT'S ONE PLACE WHERE YOU CAN GO AND YOU CAN SEE ALL OF THOSE THINGS. SO AND WE'LL CONTINUOUSLY BE UPDATING THAT AS OPPOSED TO I WANTED TO GIVE YOU A LOT OF THE CORE DOCUMENTS BY PAPER SO YOU COULD GO THROUGH THOSE. BUT THAT WILL BE A MUCH EASIER WAY TO SHARE INFORMATION WITH YOU. SO MR. FINCH, IN MY PREVIOUS LIFE I CAN REMEMBER FIRST SOUTHWEST, WHO IS NOW PLAINS CAPITAL, WOULD COME OUT AND PROVIDE AN ANALYSIS AS TO, OKAY, THIS IS YOUR YOUR CURRENT TAX RATE. AND THEN DEPENDING ON WHAT PROJECTS YOU ARE CONSIDERING, THIS WOULD BE THE IMPACT ON THE TAX RATE. SO DO WE HAVE PLANS TO HAVE PLAINS CAPITAL COME OUT HERE AND PROVIDE US THAT KIND OF ANALYSIS. SO WE HAVE HILLTOP SECURITIES. WE'VE ALREADY ASKED THEM TO DO IT AND WE'VE ALREADY RECEIVED IT. SO OKAY, SO THEY HAVE DONE THAT ANALYSIS AGAIN BASED ON THAT NUMBER. WE'RE JUST USING IT AS A AS A BENCHMARK SO THAT WE CAN SHARE REAL NUMBERS WITH YOU OF THAT 2025 MILLION AND WHAT THE IMPACT OF THAT WOULD BE. BUT I WANT TO GO BACK TO THE QUESTION ON THE USE OF FUND BALANCE, AS WELL AS OTHER OPTIONS. ONE OF THE THINGS THAT I THINK IS A BEST PRACTICE, AND I'LL SHARE WITH YOU THE WAY I'VE DONE THIS BEFORE IN THESE LARGE PROJECTS IS WE WOULD TAKE OUT NOTES, OR ESSENTIALLY, YOU COULD THINK OF IT ALMOST LIKE TAKING OUT A CONSTRUCTION LOAN OR SOMETHING LIKE THAT TO GET THE BUILDING UP AND THEN FIGURE OUT EXACTLY ONCE IT'S ALL DONE, WHAT YOUR TRUE COSTS ARE, AND TAKE THE BOND OUT AT THE END INSTEAD OF OUT FRONT. THAT WAY YOU'RE NOT BORROWING MONEY THAT YOU DON'T NEED, THAT YOU'RE GOING TO HAVE TO PAY BACK IN THE INTEREST. AND SO IN MY EXPERIENCE, I'VE DONE THIS WITH WATER PROJECTS, I'VE DONE THIS WITH THESE TYPES OF SERVICE CENTER FACILITIES THAT CAN SAVE YOU MILLIONS OF DOLLARS, BECAUSE IF YOU CAN PIECEMEAL THAT A LITTLE BIT, THAT GOES A LONG WAY. ESPECIALLY LIKE WHAT WE WERE JUST TALKING ABOUT SOME OF THE SOFT COSTS AND SOME OF THE STUFF UP FRONT WITHOUT BORROWING ADDITIONAL MONEY. AND THEN IF SALES TAX IS GOOD OR WE CAN USE FUND BALANCE OR WHATEVER, MAYBE.
[00:25:02]
AND THIS IS JUST HYPOTHETICAL, BUT MAYBE WE ONLY NEED TO BOND 5 MILLION OF THE SERVICE CENTER INSTEAD OF THE WHOLE THING. SO JUST FROM A FINANCIAL STRATEGY, KIND OF DOING THAT AND THINKING ABOUT THAT AT THE END. SO, MR. FRENCH, I DO HAVE A QUESTION ABOUT THAT BECAUSE I DON'T UNDERSTAND. SURE. THAT'S OKAY. YOU KNOW, I'VE HEARD ABOUT ALL THAT. SO WOULD THAT ALL COULD THAT ALSO BACKFIRE IF CONSTRUCTION COSTS WENT UP, LIKE LET'S SAY ANOTHER 2020 HAPPENED, CONSTRUCTION COSTS GO THROUGH THE ROOF. COULD THAT BACKFIRE? SO WHAT WE WOULD DO, WHAT WE WOULD NEED TO DO IS WE WOULD NEED TO AGAIN, I'M JUST SPEAKING IF AND HYPOTHETICAL. LET'S SAY YOU WERE GOING TO RECOMMEND TO THE COUNCIL THAT YOU THAT WE NEED TO GO AHEAD AND DO A BOND AND LET'S AGAIN JUST HYPOTHETICALLY SAY IT'S 20, 25 MILLION. WE WOULD PUT THAT BOND BEFORE THE VOTERS GET THE AUTHORIZATION TO DO THE BOND UP TO THE 2025 MILLION. SO IT'S A THERE IF WE NEED IT. BUT WE WOULD ACTUALLY DO THE WORK. AND SO WE'D ACTUALLY BE PAYING THE WORK AS WE GO. SO FOR INSTANCE, THE DEMOLITION AND THE STEEL BEAM CONSTRUCTION AND THAT TYPE OF STUFF, LET'S SAY THAT AS WE START WORKING WITH THE CONTRACTOR, WE FIND OUT THAT THAT'S GOING TO TAKE 12 MONTHS, RIGHT? SO INSTEAD OF BORROWING THAT WHOLE $10 MILLION, WE MAY ONLY NEED 1 MILLION OR 1 MILLION AND A HALF. AND SO WE WOULD DO IT AS FAST AS WE CAN SO THAT WE DON'T RUN INTO THE PROBLEM THAT YOU'RE TALKING ABOUT, BECAUSE WE DON'T WANT THAT TO HAPPEN. BUT WE WOULDN'T ACTUALLY BORROW THE WHOLE AMOUNT UNTIL WE ABSOLUTELY NEEDED IT. AND WE MAY NEVER NEED THE WHOLE AMOUNT, BUT WE WOULD GET THE AUTHORIZATION UP FRONT. SO AND THE AND THE SAVINGS WOULD BE THE FACT THAT AS OPPOSED TO PAYING INTEREST ON $10 MILLION OF DEBT FROM DAY ONE, YOU'RE ONLY PAYING INTEREST ON WHAT YOU'RE USING RIGHT NOW IN THE COST OF ISSUANCE. BECAUSE THE LAST TIME RIGHTS. ABSOLUTELY. RIGHT. YEAH. AND UPDATING THE CREDIT RATING AND ALL OF THAT STUFF, YOU CAN YOU CAN DELAY THAT A LITTLE BIT AND THEN ONLY BORROW WHAT YOU NEED TO. MR. FRENCH, ARE YOU FAMILIAR WITH DESIGN BUILD AGREEMENTS. YES. COULD ANY OF THAT BE FACTORED INTO THE WAY THESE PROJECTS ARE LOOKING? YES, YES. AS A MATTER OF FACT, MR. HARVEY INTRODUCED ME TO A CITY MANAGER WHO UNFORTUNATELY, WE JUST LOST. NOT RECENTLY. MR. PAT STALLINGS AND THE CITY OF SEAGOVILLE JUST BUILT A NEW POLICE STATION AND A NEW FIRE STATION WITH DESIGN BID AND OR DESIGN BUILD. I'M SORRY, NOT DESIGN, DESIGN, BUILD. AND BASICALLY WHAT THEY DID IS THEY SAID, OKAY, HERE'S THE PRICE THAT WE'RE GOING TO ALLOCATE TO. FOR INSTANCE, IN THAT PARTICULAR CASE THAT WAS I BELIEVE IT WAS 8 MILLION. DO YOU REMEMBER I THINK IT WAS 8 MILLION FOR THAT POLICE STATION CONTRACTOR. HERE'S THE MAXIMUM YOU CAN BUILD EXACTLY WHAT WE'RE TELLING YOU TO BUILD $8 MILLION AND THAT'S IT. AND IT REALLY SHORT CIRCUITS A LOT OF THE PRECONSTRUCTION AND CHANGE ORDERS AND EVERYTHING. THAT WAS THE CHALLENGE FOR THE NEW FIRE STATION THAT HAD 26 CHANGE ORDERS. THAT WAS JUST RIDICULOU. DESIGN BUILD HEIGHTS AS WELL. GROSSMAN DESIGN BUILD. AND YOU'RE RIGHT, THAT MAXIMUM PRICE THAT YOU CAN'T SEE IT HELPS SO MUCH WITH THINGS LIKE CHANGE ORDERS AND THOSE KIND OF THINGS. THAT CLASSIC UNDERBID. AND THEN WE WENT TO OUR NUMBER FIVE CHANGE WAS NOT JUST A COMPANY THAT. HAD NO ITS CONCEPT. IT'S A CONCEPT. IT'S A YOU GIVE THEM THE AMOUNT OF MONEY THAT YOU'RE GOING TO ALLOCATE FOR THAT PROJECT. AND NOT QUITE SURE HOW THE AGREEMENTS WORK OUT. IF THEY COME UNDER, DO THEY GET A BONUS, SO TO SPEAK. AND IF THEY GO OVER, THEY HAVE TO ABSORB IT SOMEHOW. OKAY. SO ESSENTIALLY YOU SAY THIS IS THE BUILDING WE WANT AND HERE'S WHAT WE'RE WILLING TO PAY FOR IT, WHICH CONTRACTORS WANT TO WORK WITH US. YEAH, YEAH. HEAVILY BOND COMPANIES WORK IN REGARD TO IF YOU SAY, OKAY, WE'VE GOT APPROVED VOTERS APPROVAL FOR $20 MILLION, BUT WE'RE GOING TO PARTIAL THIS OUT. DON'T THEY REQUIRE PAYMENT FOR THEIR SERVICES FOR THE FULL 20 MILLION, OR WOULD THEY? WELL, SO WHAT THEY DO IS THEY REQUIRED AT THE TIME OF THE BOND ISSUANCE. SO IT'S THE ISSUANCE COSTS. SO THE COST WOULD BE WITH WHATEVER THE FINAL NUMBER IS THAT WE END UP PUTTING THE BOND DOWN. BUT IT WOULDN'T BE ON THE FIRST NOTES. A LOT OF TIMES YOU CAN ACTUALLY DO PRINCIPAL OR I'M SORRY, INTEREST ONLY PAYMENTS. ALSO, IF YOU DO SOMETHING LIKE THERE'S A THING CALLED A BOND ANTICIPATION NOTE WHERE YOU YOU BORROW A SMALLER AMOUNT OF MONEY UP FRONT TO DO THE BASIC THINGS THAT YOU NEED TO GET DONE, KNOWING THAT EVENTUALLY YOU'RE GOING TO GO AND GET A BIGGER BOND THAT'S[00:30:05]
ALREADY BEEN APPROVED BY THE VOTERS. THAT'S THE KEY, THOUGH. IT HAS TO HAVE ALREADY BEEN APPROVED BY THE VOTERS. SO IF THE VOTERS SAY NO, THEN IT CAN'T HAPPEN. SO. ANY OTHER QUESTIONS ON THIS PARTICULAR TOPIC? OKAY. ALL RIGHT. SO THAT TAKES US TO SEE I CAN GO AHEAD. GO AHEAD.MR. FINCH, WHEN YOU WERE. ANSWERING MR. HARVEY'S QUESTION ABOUT SECURITIES, IS THAT DOCUMENTATION ON THE WEBSITE AS WELL? WE'RE GOING TO PUT IT THERE AND WE'RE ALSO GOING TO EMAIL IT TO YOU. WE JUST AS WE'RE PUTTING ALL THIS TOGETHER, I JUST HAVEN'T DONE THAT YET.
BUT YOU ARE DEFINITELY GOING TO GET THAT. WE'LL ALSO END UP EMAILING THIS TO YOU TOO. JUST SO AND PUTTING THIS ON THE WEBSITE, THAT'S THE THAT'S THE BIG THING TOO, IS WE'RE TRYING TO BE REALLY CAREFUL TO MAKE SURE THAT EVERYTHING WE'RE GIVING YOU, WE ALSO PUT IN ON THE WEBSITE, BECAUSE THEN IT'S IN THE SPIRIT OF TRANSPARENCY. THAT WAY ANYBODY CAN GO LOOK AT IT. SO AND THERE WILL BE A WHOLE THERE'S FILES THERE THAT WILL END UP BEING LIKE A WHOLE REPOSITORY OF DIFFERENT INFORMATION. I'LL GIVE YOU A PERFECT EXAMPLE. THE POLICE REPORT THAT IS IN YOUR BINDER. THERE WAS A THERE WAS AN UPDATE THAT WAS NEEDED ON SOME OF THE NUMBERS. AND WE JUST GOT THAT. SO WE'LL BE PUTTING THE UPDATED ON THE WEBSITE. AND SO THERE'S NOT HUGE DIFFERENCES BUT THERE ARE SOME DIFFERENCES. AND SO WE WANT TO MAKE SURE WE'RE KEEPING THAT UPDATE FOR YOU. OKAY. ANY OTHER QUESTIONS BEFORE WE MOVE ON. ALL RIGHT. ITEM EIGHT DISCUSSION OF TAXING IMPACTS. AND I THINK THAT THIS ONE OBVIOUSLY WE JUST TALKED ABOUT THIS A LITTLE BIT. AND I GUESS MY SUGGESTION TO YOU AND I JUST KIND OF WANTED TO TALK BIG PICTURE FOR A MINUTE, IS THAT MAYBE THIS IS A CONTINUOUS DISCUSSION ITEM AS WE GO THROUGH EACH OF THESE DIFFERENT PROJECTS AND THESE DIFFERENT SCENARIOS, AND WE START TO SAY, OKAY, IF WE DO THE SERVICE CENTER AND THEN WE DO THIS, WHAT DOES THIS LOOK LIKE? AND THAT WE KIND OF KEEP GOING BACK IN THE PRESENTATION THAT WE WENT THROUGH LAST WEEK THAT WE STARTED TO GO THROUGH, AND I THINK YOU HAVE A COPY OF IT, I BELIEVE I BELIEVE YOU HAVE A COPY, BUT IF YOU DON'T, THAT'S THAT'S OKAY. WE'LL MAKE SURE THAT YOU GET IT. WE DID RUN SOM. THERE'S SOME SLIDES WITH SOME NUMBERS IN TERMS OF EVEN GOING OUT THROUGH THE YEAR 2040 AND WHAT THOSE MIGHT LOOK LIKE. BUT AS WE GO PROJECT BY PROJECT, WE'LL BE ABLE TO DRILL DOWN MORE AND GIVE YOU MORE SPECIFIC NUMBERS THAN GENERAL ESTIMATION. AND THEN WE'LL BE ABLE TO TALK ABOUT THOSE TAXING IMPACTS.
RIGHT. SO I THINK THE BIG THING IS AND YOU TELL ME IF THERE'S SOMETHING ELSE THAT YOU WANT TO SEE, BUT WE TALK ABOUT THE BONDING AMOUNTS OF THAT 20, $25 MILLION AND WHAT THE DEBT SERVICE IMPACT IS ON THAT. PLUS THE CURRENT TAXABLE DEBT SERVICE, WHICH IS THREE AND A HALF CENTS. AND THEN THAT GOES DOWN. AND THEN WHAT I'D LIKE TO DO IS, AS WE KIND OF GO THROUGH IN THE FUTURE, THESE DIFFERENT PROJECTS, I'LL BE ABLE TO SHOW YOU ACTUAL REAL TIME EXAMPLES OF BASED ON AN AVERAGE HOUSE. THIS IS THE ACTUAL DOLLAR AMOUNT. I THINK THAT THAT'S SOMETHING THAT WE REALLY NEED TO KEEP IN MIND FOR A 200,000 OR 300 TO 400 OR $500,000 HOUSE. SO WE SEE WHAT THOSE ACTUAL DOLLAR NUMBERS REALLY ARE. SO IF THAT'S AMENABLE TO EVERYBODY, OKAY.
WELL, JUST JUST FOR ME PERSONALLY, I LIKE THAT APPROACH BECAUSE IT'S WE'RE TALKING ABOUT SEVERAL DIFFERENT THINGS. AND SO AS WE GO THROUGH EACH ONE, WE TALK ABOUT THE IMPACT OF THAT ONE IN GENERAL TERMS. AND THEN WHEN WE GET THROUGH THE WHOLE PROCESS, THEN WE DO A SUMMARY.
AND AS YOU SAY IT, IF WE DECIDE TO DO THIS, THIS IS THE IMPACT. IF WE DECIDE TO DO THAT, THAT WOULD BE THE IMPACT. SO THAT WOULD HELP ME. SO IS EVERYBODY ELSE OKAY WITH THAT? WE IS THERE ANYTHING ELSE THAT YOU WOULD LIKE TO SEE RELATIVE TO THAT? OR IS THAT IF THERE'S ANYTHING ELSE ANYBODY. IS THAT SUFFICIENT FOR AS WE GO THROUGH THESE, MR. ZILKER, I'M JUST CURIOUS. I'M NOT SURE ABOUT EXEMPTIONS THAT FOLKS THAT ARE RESIDENTIAL CAN APPLY FOR, TO DO EXEMPTIONS HELP OR HURT THE BOND RATING. SO. AND IF YOU DON'T KNOW THAT'S OKAY. WELL NO. SO THEORETICALLY AN EXEMPTION WOULD LOWER THE TAXABLE VALUE. RIGHT. SO IF MORE PEOPLE HAVE EXEMPTIONS RIGHT
[00:35:04]
THEN THE COST IS SPREAD OVER MORE OF BASICALLY THE TAXPAYERS THAT DON'T HAVE THE EXEMPTIONS.RIGHT. THAT'S KIND OF THE WAY IT WORKS. SO BUT THE OVERALL USUALLY WHAT WE DO IS USE THE OVERALL ASSESSED TAXABLE VALUE OF THE CITY. NOW WE HAVE THE TOTAL TAXABLE. WE HAVE THE TOTAL ASSESSED VALUE. AND THEN WE HAVE THE TOTAL TAXABLE VALUE. AND THAT'S THE DIFFERENCE. THE DIFFERENCE IS THE EXEMPTIONS. AND SO WE USUALLY WILL TALK ABOUT THE TAXABLE VALUE BECAUSE THAT ACTUALLY TELLS YOU THE REAL NUMBER TO HELP CALCULATE THE ACTUAL PENNY PER HUNDRED OR SO.
AND IS THAT WHAT THAT CAP THAT YOU WERE TALKING ABOUT IS BASED ON. YES. SO THE CAP FROM THE STATE OF TEXAS IS A DOLLAR FOR DEBT, NOT FOR NOT FOR OPERATIONS. SO THAT'S THE OTHER THING IS IT BREAKS DOWN. RIGHT. SO OF THE CITY'S $0.61 CURRENTLY THREE AND A HALF CENTS IS DEBT.
THE REST IS OPERATIONS. IT'S ALL THE OTHER THINGS. SO WHAT THE STATE OF TEXAS SAYS IS YOU CAN HAVE $1.50 OF DEBT PER 100. SO THEORETICALLY YOU COULD HAVE THE DOLLAR. NOT NEVER EVER RECOMMEND THIS, BUT YOU COULD HAVE $1.50 OF DEBT PLUS THE OPERATIONS OF THE CITY. SO YOU COULD HAVE A TAX RATE OF. BUT I THINK THE CAP ON THAT IS 250 PER 100. SO BUT THAT'S NOWHERE NEAR WHERE WE WANT TO GO OBVIOUSLY. SO. YES. AND THEN WE'D BE THE FOCUS OF NEWS MEDIA. RIGHT. EXACTLY RIGHT. EXACTLY. IT WOULD BE LEAVING DUNCANVILLE IN DROVES. BUT I THINK IT'S REALLY IMPORTANT TO KEEP THAT PERSPECTIVE, RIGHT? YES. IT'S LITERALLY WE'RE TALKING ABOUT PENNIES. BUT THOSE PENNIES TRANSLATE INTO REAL DOLLARS WHEN YOU CALCULATE ON THE TAXABLE VALUE OF SOMEBODY'S HOUSE. AND SO MAKING SURE THAT WE REALLY UNDERSTAND THAT, YOU KNOW, IS IT IS IT $100 A YEAR, IS IT $500 A YEAR. BUT REALLY UNDERSTANDING WHAT THAT MEANS. SO DID THAT ANSWER YOUR QUESTION? MR. WHAT'S GOING RIGHT WITH TAX EXEMPT BOND? WE'RE ESTIMATING 4 TO 5%.
YOU KNOW, HOPEFULLY IT'LL COME DOWN A LITTLE BIT, BUT BALLPARK BECAUSE SO THE CITY IS A DOUBLE LEG BOND RATING. AND I'M HOPING THAT WE CAN GET THE CITY DOESN'T CURRENTLY HAVE A MOODY'S RATING WHICH IS NOT A BAD THING. THE CITY HAS A STANDARD AND POOR'S AND FITCH RATING, BUT I'M REALLY HOPING THAT WE CAN GET A MOODY'S RATING OF A DOUBLE. AND WITH THE LONG TERM FINANCIAL PLAN THAT WE'RE DOING, THE CAPITAL IMPROVEMENT PLAN, THE FUND BALANCE POLICY, THOSE ARE ALL THE THINGS THAT MOODY'S LIKES TO SEE WHEN THEY'RE DOING A BOND RATING. AND RICHARD AND I HAVE BEEN HAVING THOSE CONVERSATIONS FOR ALMOST A YEAR NOW AND TELLING THEM THAT'S HOW WE ACTUALLY GOT OUR DOUBLE A STANDARD AND POORS RATE REINSTATED. BUT AS THEY SEE THAT STUFF ACTUALLY HAPPENING, LITERALLY, I SAW AN EMAIL TODAY BACK AND FORTH WITH THE BOND RATING AGENCIES. IT WAS LIKE YOU GOT THE AUDIT DONE ON TIME. I MEAN, LITERALLY IT WAS KIND OF LIKE IT WAS EXCITEMENT. IT WAS GOOD. AND THE QUESTION WAS, IS NEXT YEAR IS GOING TO BE ON TIME? WELL, YES, IT'S GOING TO BE ON TIME, BUT TALK TO ME IN MARCH OF 26. SO I THINK WE'VE SOLVED THOSE PROBLEMS. BUT BUT ANYWAY, SO JUST FOR CLARIFICATION. RIGHT NOW, WE WOULD LIKE TO HAVE A MOODY'S RATING IF WE CAN GET ONE. HAVE WE REACHED OUT TO THEM TO DO THAT? AND ARE THERE ANY PIECES IN PLACE STILL PENDING THAT WE NEED TO DO BEFORE WE CAN REACH OUT TO THEM? WE HAVE BEEN HAVING CONVERSATION WITH THEM AS WELL IN HILLTOP HELPS MAKE THOSE CONNECTIONS FOR US AND EVERYTHING. THEY'RE REALLY GOOD ABOUT THAT. SO WE HAVE HAD SOME CONVERSATIONS WITH THEM. MOST OF OUR CONVERSATIONS ARE WITH STANDARD AND POOR'S BECAUSE THAT'S OUR CURRENT MEAN RATING, REALLY. BEFORE WE REACH OUT TO THEM, WE NEED TO FINISH UP A FEW THINGS. WE NEED TO ACTUALLY GET THE 15 YEAR CAPITAL IMPROVEMENT PLAN OFFICIALLY ADOPTED. I HAVE NO REASON TO THINK THAT WE WON'T, BUT WE'RE WORKING ON THAT. AND THEN I THINK THE OTHER THING THAT WILL BE VERY HELPFUL IS THIS BUDGET THAT WE'RE WORKING ON RIGHT NOW, WE'RE DOING A MULTI YEAR LOOK AT IT. AND SO THEY'LL SEE A MULTI YEAR FINANCIAL STRATEGY WITH THAT.
TYING IN THAT 15 YEAR CAPITAL IMPROVEMENT PLAN THAT ON TOP OF THAT WITH THE POLICIES THAT THE COUNCIL HAS ALREADY ADOPTED. I'M VERY CONFIDENT MOODY'S WILL LOOK AT US VERY FAVORABLY. SO RIGHT.
ANY OTHER QUESTIONS. DOES MOODY'S CHARGE TO DO A REVIEW. YEAH WE DO. IT'S THE TIME FRAME THAT THEY MIGHT BE WILLING TO DO THAT. EACH ONE OF THEM IS DIFFERENT. JASON FROM HILLTOP SECURITIES CAN PROBABLY BETTER ANSWER THAT BASED ON HIS EXPERIENCE. PREVIOUSLY IT TOOK,
[00:40:02]
I WOULD SAY WHEN I DID IT, I ACTUALLY HAD TO GO TO THE MOODY'S AND HAVE ALL KINDS OF DIFFERENT CONVERSATIONS WITH THEM. I WANT TO SAY IT WAS LIKE 60 TO 90 DAYS, BUT AS LONG AS YOU GO IN PREPARED AND YOU HAVE EVERYTHING, IT'LL MOVE ALONG PRETTY QUICKLY. SO. BUT I MEAN, THERE WILL BE THERE WILL BE INTEREST BECAUSE THE CITY HAS A GOOD BOND RATING, EVEN WITH THE STANDARD AND POOR'S. A STANDARD AND POOR'S THIS PAST YEAR CHANGED THEIR CRITERIA. SOME OF YOU MAY HAVE HEARD ME SAY THAT. AND SO A LOT OF CITIES THEIR BOND RATING THAT DOWNGRADED. AND WE WERE VERY, VERY FORTUNATE. WE WERE HAVING LITERALLY INTERVIEWS WITH STANDARD AND POOR'S. AND THEY HELD OUR BOND RATING THE SAME AS A AA BOND RATING. THE ADVANTAGE TO GETTING A GOOD BOND RATING IS NOT ONLY THE BETTER RATES, BUT IT'S THE FINANCIAL INSTITUTIONS THAT WILL LOOK AT YOU. AND SOMETIMES IT GETS SO COMPETITIVE THAT THEY'LL BUY DOWN THEIR OWN RATES. SO FOR INSTANCE, WE WERE SUCCESSFUL IN GETTING A PRIMING STUDY. WE WERE SUCCESSFUL IN GETTING IT ENDED UP BEING A $5 MILLION BOND AT 0.75% INTEREST. AND SO BECAUSE WE DID ALL THE HOMEWORK UP FRONT, WE GOT THE GOOD BOND RATING. AND THEN WE ATTRACTED SO MANY FINANCIAL INSTITUTIONS.THEY WERE COMPETING WITH EACH OTHER. THAT'S WHAT YOU WANT TO HAVE HAPPEN. THAT'S A PERFECT WORLD. YEP. THAT IS PERFECT WORLD. I HAVE NOT I'M NOT GOING TO ENTER UNDER ANY ILLUSION THAT WE'RE GOING TO GET THAT LOW. BUT THAT WOULD THAT WOULD BE A GOAL. SO YEAH. YEAH. ANY OTHER QUESTIONS? GOING ONCE. GOING TWICE. ALL RIGHT. YEAH. THANK YOU, MR. FITCH, FOR YOUR VERY COMPLETE AND THOROUGH. YOU'RE WELCOME. THANKS FOR TAKING THE TIME AND GOING ALONG THE JOURNEY WITH US. ABSOLUTELY, ABSOLUTELY. SO DO I WOULD LIKE TO ENTERTAIN A MEETING. AND MOTION. THAT'S NOT A MOTION TO ADJOURN. TO ADJOURN. ALL RIGHT. MOTION AND SECONDED. AND WITH THAT, WE'LL SEE YOU ALL NEXT TIME. THANK YOU. THANK YOU EVERYBODY. WE'LL PLAN TO DO POLICE NEXT MEETING IF THAT'S OKAY WITH EVERYBODY.
* This transcript was compiled from uncorrected Closed Captioning.