Jun 26, 2025 City Council Budget Workshop

[00:00:01]

REALLY? OH, YEAH. SO. AND THEN THE SUN, THE. OKAY. IT'S THE WITCHING HOUR. WE HAVE. MISTER

[1. CALL TO ORDER]

[3.A. Receive a presentation, discuss, and deliberate the preliminary FY 2025-2026 proposed budget and Capital Improvement Plan. The City Council may direct staff to make additions or deletions per current and future goals. ]

AGAIN THIS IS STILL PRELIMINARY. THE PROPOSED BUDGET THAT WE WILL ULTIMATELY BE FILING WITH YOU ALL WILL NOT BE UNTIL THE END OF JULY. SO THERE COULD STILL BE SOME. THERE WILL STILL BE SOME TWEAKS AND FINE TUNING. SO WE'RE STILL KIND OF KEEPING THIS SOMEWHAT HIGH LEVEL AND NOT GETTING TOO MUCH INTO THE WEEDS OF THE ACCOUNTS AND THE NUMBERS PER SE, BUT WE WANTED TO HAVE THIS OPPORTUNITY AGAIN, TO GIVE YOU KIND OF A HEADS UP OF WHERE WE'RE GOING AND WHAT WE'RE INTENDING TO PROPOSE, TO MAKE SURE THAT WE'RE ALL ON THE SAME PAGE. IF THERE'S ANY FEEDBACK YOU, AS COUNCIL HAVE OR DON'T WANT TO MAKE SURE THAT WE BUILD INTO THE BUDGET OR ANY OF THOSE DISCUSSIONS WE WANT TO HAVE PRIOR TO THE ACTUAL PROPOSAL. SO THIS WILL GIVE YOU THAT OPPORTUNITY TO SPEAK INTO THAT AND TO GIVE FEEDBACK. SO WITHOUT FURTHER ADO. OKAY, SO THIS IS KIND OF OUR AGENDA AND OUR TALKING POINTS. OBVIOUSLY WE'RE GOING TO GO THROUGH THE BUDGET CALENDAR, THE REMAINING DATES FOR THE REST OF THIS BUDGET ADOPTION AND PROPOSED BUDGET CYCLE. HERE WE'RE GOING TO ACTUALLY TALK A LITTLE BIT ABOUT SALES TAX. WE'RE GOING TO TALK ABOUT THE PRELIMINARY BUDGET AND SOME OTHER FUN HIGHLIGHTS, JUST GIVING YOU A HIGH LEVEL OF SOME OTHER FUNDS AND WHAT TO EXPECT. WE'RE GOING TO TALK ABOUT PROPERTY TAX AND SPEND A LITTLE TIME TALKING THROUGH THAT, AS WELL AS GOING THROUGH THE GENERAL FUND, WHICH IS GOING TO BE THE MAIN FOCUS OF OUR EVENING TODAY WILL BE GENERAL FUND AND PLENTY OF TIME FOR QUESTIONS AND ANSWERS AND DISCUSSION. BUT IF ANY TIME AS WE GO THROUGH THIS AND YOU HAVE A QUESTION, PLEASE JUST RAISE YOUR HAND. I MIGHT BE, YOU KNOW, IN MY ZONE. SO IF YOU HAVE TO STAND UP, RAISE YOUR HAND. SOMETHING TO STOP ME. DON'T BE AFRAID TO DO SO. AND ALSO DON'T BE AFRAID TO GET FOOD AS YOU NEED TO. OKAY, SO THE BUDGET CALENDAR AND THE PLANNING PROCESS. SO TODAY'S OBVIOUSLY JUNE 26TH IS OUR SECOND WORKSHOP. WE HAVE AN INTERNAL DEADLINE TO AT LEAST HAVE EVERYTHING COMPILED EVERYTHING TOGETHER TO HAVE A COMPLETED BUDGET. READY TO TURN OVER TO YOU GUYS INTERNALLY. WE'RE SHOOTING FOR THE 18TH. IT MAY BE EXTENDED A LITTLE BIT BEYOND THAT, BUT BOTTOM LINE IS WE WILL BE ON TIME BY CHARTER TO MAKE SURE YOU HAVE A PROPOSED BUDGET IN HAND BEFORE THE END OF JULY. SO AT THIS POINT, WE'RE STILL KIND OF WORKING ON SOME SCENARIOS BECAUSE WE WILL NOT HAVE THE CERTIFIED TAX ROLLS FROM THE APPRAISAL DISTRICT UNTIL THE 25TH. SO RIGHT NOW OUR NUMBERS ARE BASED ON JUST PRELIMINARY DATA THAT THEY GAVE US. WE'LL WALK THROUGH MORE OF THAT IN A BIT. SO JULY 29TH WE ARE HAVING A MEETING. IT'S A THIRD OR I SHOULD SAY IT'S A FIFTH TUESDAY OF JULY. AND SO THIS WILL REALLY BE MORE OF A BRIEFING, KIND OF A HIGH LEVEL OVERVIEW OF THE PROPOSED BUDGET THAT WILL SET US UP FOR THE AUGUST 12TH MEETING, WHICH WILL BE A MORE IN DEPTH. WE'LL HAVE DEPARTMENTS PRESENT THAT SORT OF THING. AND THEN ALSO BY LAW, WE HAVE TO DO A RECORD VOTE. AS YOU REMEMBER, WE HAVE TO DO A RECORD VOTE ON THE TAX RATE. IT'S NOT TO ADOPT A TAX RATE, BUT IT'S TO SAY, HEY, THIS IS THE RATE WE'RE WILLING TO PROPOSE, AND IT'S FOR PUBLICATION PURPOSES AND ALL OF THAT. SO BUT AGAIN, THAT'S NOT WHEN WE ACTUALLY ADOPT THE RATE, BUT WE HAVE TO HAVE THAT ON RECORD. SO AUGUST 12TH WILL BE OUR IN-DEPTH BUDGET WORKSHOP. AND AGAIN THAT'S A THAT'S A THURSDAY IN AUGUST. AND THEN WE HAVE THE TWO HEARINGS AT THE END OF SEPTEMBER. SEPTEMBER 2ND WILL BE THE HEARING ON THE BUDGET, AND SEPTEMBER 16TH WILL BE THE HEARING ON THE TAX RATE. AND THAT'S WHEN WE DO ALL THE ADOPTIONS. SO ANY CHANGES AND ALL OF THAT, THAT MAY HAPPEN BETWEEN WHEN WE GIVE YOU THE BUDGET AND THAT ADOPTION, HOPEFULLY WE'LL HAVE A CHANCE TO TALK ABOUT IT WAY BEFORE THAT.

OKAY. ANY QUESTIONS ON THE DATES? MAYOR WAS JUST ASKING FOR A COPY OF THAT. OH, ABSOLUTELY.

BUT WE'LL WE'LL GIVE THAT TO YOU. ANTICIPATED TIME. AND THESE ARE REGULAR MEETINGS, BY THE WAY. THESE ARE YOUR REGULAR COUNCIL MEETINGS OKAY. SO THE NIGHT OF 29TH. YES. SO

[00:05:03]

SO THAT IS REALLY OUR STRATEGIC FOCUS. WE'RE GOING TO FOCUS ON PEOPLE. THAT'S WHAT OUR COMPETITIVE SALARY AND OUR BENEFITS CONTINUING TO WORK OUR WAY UP TO THAT STATUS IN THE METROPLEX, AS WELL AS WORKING THROUGH THE PUBLIC SAFETY AND IMPLEMENTATION OF THE MATRIX STUDY, YOU KNOW, IMPLEMENTING THAT IN A STRATEGIC FASHION, FOCUSING ON PROJECTS. WE'VE GOT A LOT OF BIG THINGS HAPPENING. WE'VE GOT A LOT OF THINGS IN THE WORKS THAT ARE COMING DOWN THE ROAD. YOU KNOW, WE'VE ADOPTED A 15 YEAR CIP PLAN. WE'VE GOT TO WORK THROUGH THOSE ARMY STREET IMPROVEMENTS ON THE SERVICE CENTER AND THEN THE 2025 BOND THAT OF COURSE, THAT GETS CALLED. AND IF THAT GETS PASSED, WE'LL HAVE A LOT OF WORK TO DO WHEN IT COMES TO MANAGING THIS PROJECT. SO WE'RE GOING TO BE FOCUSING ON THAT AS WELL AS ON THE PLANNING SIDE, FOCUSING ON THAT COMPREHENSIVE PLAN, BECAUSE EVERYTHING REALLY RESTS WITH THAT PLAN. EVERYTHING WE DO NEEDS TO TIE BACK TO THAT PLAN. SO WITH OUR OPERATIONS AND OUR STRATEGIC FOCUS IS TYING BACK TO WHAT THAT GRAND VISION IS OF THE COMMUNITY. BEFORE YOU MOVE ON, AND FOR THE BENEFIT OF MR, COULD YOU JUST GO BACK ONE SCREEN? ABSOLUTELY. CALENDAR TO THE DATE. SORRY. OKAY. MR. KINZER, WE'RE GOING TO GET A COPY OF THIS CALENDAR. THESE ARE ALL THE DATES AT COUNCIL MEETINGS AND THE JULY 29TH. IT'S GOING TO BE A SPECIAL MEETING, FIFTH, FIFTH TUESDAY OF THE MONTH, AND IT'S GOING TO BE JUST ON THE BUDGET. SO WE'LL ALL BE GETTING A COPY OF THIS. THANK YOU. YOU'RE WELCOME. 29 SO AGAIN, EVERYTHING THAT WE'RE WORKING TOWARDS IS WORKING TOWARDS THAT 2040 GOAL.

SO I JUST WANT TO BRIEFLY TALK ABOUT SOME LEGISLATIVE UPDATES. IF YOU'VE BEEN STAYING IN TUNE TO WHAT'S BEEN HAPPENING AT THE 89TH LEGISLATURE, WHICH IS PRETTY MUCH, I THINK, DONE BY NOW, BUT THEY WERE REALLY BUSY THIS YEAR WITH A LOT OF BILLS BEING SENT AND BILLS BEING SIGNED. SO JUST WANT TO GIVE YOU SOME HIGHLIGHTS OF THINGS THAT DO AFFECT CITIES. AND THERE MAY BE MORE MORE TO THIS, BUT THESE ARE JUST I THINK THE MAIN ONES. SO SENATE BILL 1173, YOU MAY HAVE ALREADY HEARD OF THESE, SO THAT THE BIDDING THRESHOLD HAS BEEN INCREASED TO 100,000. SO WHAT THAT MEANS IS THAT WE HAVE TO GO OUT ON THE MARKET AND DO A COMPETITIVE BID FOR PROJECTS THAT ARE 50,000 OR GREATER. AND SO THE STATE LEGISLATURE HAS BROUGHT THAT UP TO 100,000. SO THAT IS NOW THE NEW THRESHOLD IN WHICH WE HAVE TO DO THAT COMPETITIVE BID PROCESS. AND THAT'S ALSO KIND OF WHAT WE BRING TO YOU GUYS AS WELL. SO I THINK IT'S IN OUR, OUR, OUR PROCEDURES OR OUR CHARTER IN TERMS OF THAT, I DON'T KNOW IF THAT WILL CHANGE AT THAT PERSPECTIVE OF WHAT YOU GUYS SEE AT WHAT LEVEL. BUT AGAIN, THAT COMPETITIVE BID HAS BEEN INCREASED. SENATE BILL 1851 HAS TO DO WITH THE ANNUAL CITY AUDIT. YOU MIGHT HAVE HEARD OF THIS. THIS IS BASICALLY PENALIZES THE CITY IF THERE IS A LATE AUDIT. BUT IT HAS TO DO WITH IF SOMEBODY COMPLAINS TO THE ATTORNEY GENERAL AND IF THE ATTORNEY GENERAL DEEMS IT A, YOU KNOW, A RELIABLE COMPLAINT, OR DOES SEE THAT THERE IS AN ISSUE WITH THE TIMELY AUDIT, THAT MEANS THE CITY COULD BE PENALIZED TO YOU ARE FORCED TO DO THE NO NEW REVENUE RATE TAX RATE FOR THAT FOLLOWING YEAR. SO IT'S VERY IMPORTANT THAT WE CONTINUE THE PROGRESS WE'VE MADE WITH ON TIME AUDITS, SENATE OR HOUSE BILL 1522 HAS TO DO WITH OPEN MEETINGS NOTICE. SO THIS REQUIRES US NOW TO POST OUR MEETINGS WITHIN THREE BUSINESS DAYS VERSUS THE 72 HOUR TIME. SO WHAT THAT MEANS IS OBVIOUSLY WEEKENDS DON'T COUNT. SO THIS IS GOING TO MOVE UP OUR STAFF'S WORK IN TERMS OF WHEN WE PUT OUR STAFF REPORTS OUT THERE, IMPROVING IT TO WHEN THE AGENDA IS ACTUALLY HAVE TO BE POSTED. SO IF THERE IS A HOLIDAY, YOU KNOW, WITHIN THAT WINDOW BEFORE THE TUESDAY, THAT'S ALSO ONE FURTHER ON ONE DAY WE HAVE TO BACK EVERYTHING UP. SO THREE BUSINESS DAYS JENNIFER JUST ON THAT. SO WE'LL END UP BRINGING YOU A BRIEFING TO UPDATE YOUR RULES OF PROCEDURE ON THAT, BECAUSE WE'LL NEED TO UPDATE THE RULES OF PROCEDURE. AND THAT'S

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OKAY. SO SALES TAX, THE REASON I WANTED TO TALK A LITTLE BIT ABOUT SALES TAX KIND OF EDUCATE YOU GUYS ON NUMBER ONE SALES TAX IN GENERAL. WHAT SALES TAX COMES TO THE CITY AND WHAT IS THE PURPOSE OF THE SALES TAX. SO WE AS YOU KNOW, WHEN YOU PURCHASE SOMETHING YOU PAY 8.25% IN SALES TAX ON WHATEVER YOU BUY, 6.25% GOES TO THE STATE. THEY GET TO KEEP THAT AND 2% GOES BACK TO THE CITY. SO HOW THAT 2% BREAKS DOWN. SO FOR THE GENERAL FUND, WE RECEIVE 1% OF THAT THAT CAN BE USED FOR ANYTHING WITHIN THE GENERAL FUND NEEDS. SO JUST SOME HISTORICAL PERSPECTIVE HERE. SO STATE LAW REQUIRED THIS IN 1967 AND GOES WAY BACK THAT CITIES, YOU KNOW, CAN CAN HAVE MORE OR LESS THAN THAT 1%. IT GOES TO YOUR GENERAL FUND. THERE WAS A BILL BACK IN 2015 THAT DID SOME CHANGES TO SALES TAX IN GENERAL. THAT ALLOWS A LITTLE MORE FLEXIBILITY. SO YOU'RE NOT NECESSARILY, YOU KNOW, 1%. YOU CAN YOU CAN GO MORE, YOU CAN GO LESS, BUT NOT GREATER THAN THE 2% THAT YOU'RE CAPPED AT. THE SECOND FORM OF SALES TAX THAT THE CITY COLLECTS. SO 0.5% GOES TOWARDS PROPERTY TAX RELIEF. THE PROPERTY TAX RELIEF PORTION GOES BACK TO THE GENERAL FUND AS WELL. SO APPROXIMATELY 3.3 MILLION GOES TOWARDS PROPERTY TAX RELIEF. AND REALLY ALL THAT DOES IS OFFSETS THE PROPERTY TAX RATE. IT GETS FACTORED INTO THAT COMPLICATED TAX RATE CALCULATION THAT WE HAVE TO DO. BUT BASICALLY IT'S LIKE BUYING DOWN YOUR WEIGHT ESSENTIALLY. SO IT OFFSETS. THAT'S THE PURPOSE OF THE TAX RELIEF. AND THAT WAS VOTED ON BY THE CITIZENS OF 1995. SO WE'VE HAD THAT ALLOCATION SINCE THEN. AND IF YOU WANT TO READ THE ORDINANCE, IT'S ORDINANCE 1406. BUT THERE TO FIND THAT, OKAY, SO THE THIRD PORTION OF SALES TAX IS FOR ECONOMIC DEVELOPMENT. SO 0.5%, WHICH AGAIN IS APPROXIMATELY 3.3 MILLION GOES TOWARDS THAT. AND IT GOES INTO THE ECONOMIC DEVELOPMENT FUND AND CAN ONLY BE USED FOR THE SPECIFIC PURPOSE ESTABLISHED BY THE TYPE B ECONOMIC DEVELOPMENT ACTIVITIES. THAT'S ECONOMIC ACTIVITY, WHICH, YOU KNOW, EVERYTHING THAT GOES WITH THAT. BUSINESSES AS WELL, JOB CREATION, ALL THE THINGS THAT GO WITHIN ECONOMIC VITALITY. AND THEN ALSO A COMMUNITY PORTION FOR COMMUNITY BENEFITS. AGAIN, THIS WAS VOTED IN THAT SAME ORDINANCE IN 1995, AND THIS IS THE ACTUAL SNAPSHOT OF WHAT WAS WRITTEN ON THE PROPOSITION AT THAT TIME. NUMBER TWO. SO JUST KIND OF READING AGAIN WHAT THE PURPOSE WAS BACK IN 1995. WHAT THEY ENVISIONED FOR ECONOMIC DEVELOPMENT IS TO BE USED FOR PARKS AND PARK FACILITIES, MUNICIPAL BUILDINGS, INCLUDING MAINTENANCE AND OPERATING COSTS OF SUCH FACILITIES, AND FOR THE PROMOTION AND EXPANSION OF MANUFACTURING, INDUSTRIAL FACILITIES AND ECONOMIC DEVELOPMENT PURPOSES. SO THOSE ARE THE THREE COMPONENTS THAT MAKE UP OUR SALES TAX. JENNIFER, CAN YOU BREAK THAT DOWN A HALF PERCENT? YES. BREAK IT DOWN TWO QUARTERS. THE TWO QUARTER PERCENTS OKAY. SO RIGHT. SO THE LEGISLATURE ALLOWS US TO DESIGNATE SALES TAX IN QUARTER PERCENT INCREMENTS. SO THE ECONOMIC DEVELOPMENT CORPORATION CURRENTLY GETS TWO QUARTERS TO MAKE THAT HALF. THEY DON'T HAVE TO. THAT'S A COUNCIL DECISION. THAT'S AN ORDINANCE DECISION. IT COULD BE ONE QUARTER VERSUS TWO QUARTERS. BUT JUST WANT YOU TO BE AWARE OF THAT. AND ACTUALLY IT CAN GO EVEN FURTHER THAN THAT. AND SOME OF YOU I'M GOING TO GO TO THE NEXT SLIDE HERE AND SOME OF THE OTHER OPTIONS THAT

[00:15:05]

DEDICATED SALES TAX MUST BE APPROVED BY ELECTION VOTERS. BUT THE OTHER THINGS CRIME CONTROL, STREET MAINTENANCE, FIRE CONTROL. SO PROBABLY DIDN'T LIST THIS VERY WELL. BUT THIS HAS TO HAPPEN REGARDLESS. SO IF YOU'RE MAKING ANY CHANGES YOU HAVE TO DO IT BY AN ELECTION OKAY. HAVE ANY OTHER KIND OF QUESTIONS ON HOW THE SALES TAX. AGAIN, IT'S JUST KIND OF KEEP IN THE BACK OF YOUR MIND OF WE DO HAVE OPTIONS. WE WANT TO. ALL RIGHT. SO NOW I'M JUST GOING TO KIND OF BRIEFLY WALK YOU THROUGH SOME OF THE SPECIAL FUNDS. I'M REALLY JUST GOING TO HIT HIGH LEVELS ON HOTEL MOTEL AS WELL AS ECONOMIC DEVELOPMENT, JUST SO YOU CAN GET A PREVIEW OF KIND OF WHAT TO EXPECT WHEN IT COMES TO THOSE FUNDS. SO STARTING WITH HOTEL MOTEL FUNDS. SO THIS CHART THAT YOU SEE RIGHT HERE JUST KIND OF SHOWS YOU SOME HISTORICAL ACTUALS, WHAT WE ACTUALLY RECEIVED IN REVENUE AND WHAT WE ACTUALLY HAVE SPENT. SO AS YOU CAN SEE IN BLUE ARE THE REVENUES. WE OUR REVENUES HAVE FAR EXCEEDED WHAT WE'VE ACTUALLY SPENT. SO AS YOU CAN IMAGINE, THAT JUST KIND OF BUILT UP OVER TIME IN TERMS OF HOW MUCH WE HAVE SITTING IN RESERVES TOWARDS HOTEL, MOTEL. AND ALSO IT ALSO SHOWS YOU THAT OUR HOTELS HAVE BEEN DOING PRETTY GOOD IN TERMS OF REVENUES HAVE BEEN INCREASING, ESPECIALLY SINCE COVID. RIGHT NOW WE GET ABOUT OVER A MILLION IN TOTAL HOTEL TAX FROM THE HOTELS IN OUR COMMUNITY. SO AND WHAT YOU SEE IN ORANGE IS THE EXPENSES. SO AGAIN, WHAT I'M ESTIMATING IN 25 AND 26 OR AT LEAST IN 25 EXPENSES ARE GREATER. BUT THAT'S BECAUSE WE DID THE FIELD HOUSE. WE DID SOME, YOU KNOW, ONE TIME FUNDS TO GO TOWARDS THE FIELD HOUSE ROOF AND THE HVAC. THAT WAS 1.4 MILLION. SO OF COURSE, THAT EXCEEDED THE REVENUE COMING IN. BUT AGAIN, YOU KNOW, WE HAVE QUITE THE EXCESS IN HOTEL FUNDING TO BE ABLE TO USE TOWARDS THE FIELD HOUSE AND AS A LEGISLATIVE. JUST KEEP IN MIND THAT IT DOES SPECIFICALLY SAY IN THE LEGISLATION ABOUT HOTEL MOTEL USES THAT WE CAN USE IT TOWARDS THE FIELD HOUSE. SO THE PROJECTS RELATING CAPITAL, THINGS RELATING TO THE FIELD HOUSE IS ELIGIBLE USES. AND THEN WE DON'T HAVE ANYTHING IN STONE YET FOR 26, IN TERMS OF USES OF FUNDS. BUT JUST TO GIVE YOU AN OVERVIEW HERE, WE DEFINITELY KNOW WE'VE BEEN NEEDING TO DO WAYFINDING SIGNAGE FOR QUITE A WHILE, SO THAT'S PLUGGED IN, PROJECTING ABOUT 150 FOR THAT.

WE'LL CONTINUE TO DO THE ARTS FUND TRANSFER AGAIN. THAT'S JUST 15% OF THE TOTAL REVENUE THAT WE

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SO THINGS LIKE THAT. BUT I WILL HIGHLIGHT, THOUGH, SPORTING EVENTS OUTSIDE OF CITY FACILITIES, LIKE I SAID, THAT ARE NOT TECHNICALLY ELIGIBLE HOTEL MOTEL FUNDS ONLY WHAT I GUESS WE'RE DOING WITHIN OUR FACILITIES AND THEN WE WE'RE JUST TRYING TO SOLIDIFY SOME PROJECTS AND COST NAILING DOWN WHAT, WHAT ARE THE NEEDS NEXT YEAR FOR THE FIELD HOUSE. AND SO ONCE WE IDENTIFY THAT WE CAN INCLUDE THOSE INTO THE EXPENSES AS WELL AND TALK MORE ABOUT THAT. YES, SIR. SO FOR THE SPORTING EVENTS OUTSIDE OF CITY FACILITIES, NOT ELIGIBLE IF THERE'S BUT THAT DOESN'T INCLUDE IF AN ORGANIZATION OR SOMEONE WHO'S PUTTING ON AN EVENT COMES TO US AND ASKS FOR. SO TO ADDRESS THAT. SO OKAY, SO WHAT HAPPENED WITH THE LEGISLATION THAT JENNIFER TALKED ABOUT EARLIER? IT SPECIFICALLY SAID THAT YOU COULD ONLY USE THE MONEY AT SPORTING EVENTS AT CITY OWNED FACILITIES. THAT WAS THE ONLY WAY THAT THE LEGISLATURE WOULD CARRY IT. IT PASSED THE SENATE, PASSED THE HOUSE, ACTUALLY, AND THEN IT GOT WRAPPED INTO THE OMNIBUS BILL. AND IT'S MY UNDERSTANDING. I'M SORRY FOR ALL YOU DALLAS COWBOY FANS THAT THE DALLAS COWBOYS KILLED IT. THAT WHOLE OMNIBUS BILL. SO I GUESS LET'S GO. BILLS GO BILLS AND CHIEFS. RIGHT. CHIEFS OKAY. SO ANYWAY. RIGHT. BUT NONETHELESS SO THAT PART DIED IN THE OMNIBUS BILL. SO IT'S MY UNDERSTANDING THEY ARE GOING TO READDRESS THAT. BUT THE QUESTION IS WHETHER OR NOT THAT GET DONE GETS DONE IN THE SPECIAL LEGISLATIVE SESSION.

TALK TO SENATOR WEST'S OFFICE THAT THEY'RE DEFINITELY WILLING TO CARRY IT AGAIN. SO THAT BRINGS US BACKWARDS TO WHAT'S ACTUALLY IN LAW NOW, WHICH ACTUALLY SAYS YOU CANNOT USE HOT FUNDS TO PROMOTE SPORTING EVENTS IN DALLAS COUNTY. NOW, WE HAVE SOME FLEXIBILITY WITH HOT FUNDS.

AS JENNIFER WAS SAYING, WE DO HAVE SPECIAL LEGISLATION FOR THE FIELD HOUSE, SO WE'RE GOOD THERE. THERE IS ALSO THE CAVEAT FOR TOURISM PROMOTION, THOSE TYPES OF THINGS. SO WE'LL HAVE TO LOOK AT IT ON A CASE BY CASE BASIS. SO IN YOUR OPINION, WHAT DOES THAT DO TO SOMETHING LIKE THE SANDRA MEADOWS. WE'RE GOING TO HAVE TO WORK WITH THE ORGANIZER BEFORE THEY MAKE APPLICATION. ARE WE EDUCATING THE PUBLIC AND GETTING THEM ON IT. SO YES OKAY. SO AGAIN JUST WRAPPING THIS UP ON THE HOTEL MOTEL SIDE. SO THE FUND BALANCE AT THE END OF 25 WOULD BE 2.9 MILLION. SO IF YOU ASSUME THE TYPICAL AMOUNT OF EXPENDITURES THAT WE SPEND, THAT EQUATES TO ABOUT 1500 DAYS WORTH OF FUND BALANCE OR FUNDS THAT WE HAVE NOT USED SITTING IN RESERVE FOR HOTEL MOTEL RELATED THINGS. SO AND I JUST WANT TO CLARIFY THAT I HEARD THIS CORRECTLY, THAT BIG, HUGE ORANGE LINE WAS FROM THE RESERVE TO MAKE UP THE DIFFERENCE IN EXCESS OF THE REVENUE. YES. OKAY. ABSOLUTELY. TRYING TO USE THE FUNDS THAT ARE THERE FOR THAT PURPOSE SO WE CAN GET SOME OF THOSE THINGS DONE. OKAY. ALL RIGHT. ECONOMIC DEVELOPMENT FUND HIGHLIGHTS I WILL SAY THAT THE BOARD DID MEET THIS PAST MONDAY. WE'RE GOING TO MEET, I BELIEVE, AGAIN IN EARLY JULY. SO THEY WANT TO ADOPT THEIR BUDGET BY BEFORE THE END OF JULY. SO THIS IS KIND OF A HIGHLIGHT OF WHAT THEY TALKED ABOUT. THEY CAN CERTAINLY CHIME IN IF YOU HAVE ANY OTHER SPECIFIC QUESTIONS ABOUT THEM. BUT KIND OF THE SAME EXERCISE WE DID WITH HOTEL MOTEL, YOU CAN SEE THE BLUE OF THE REVENUES. AGAIN, ONLY SALES TAX REALLY IS THE REVENUE SOURCE FOR ECONOMIC DEVELOPMENT. AS YOU CAN SEE, THE BLUE IS GONE UP. AND THE DIFFERENCE THAT WE HAVE NOT EXPENDED THE FUNDS. REVENUE THAT WE BROUGHT IN, WITH THE EXCEPTION OF YOU LOOK AT THE ESTIMATE FOR 25 AND 26 AT THIS POINT. SO 25, OF COURSE, WE'RE USING FUND BALANCE RESERVES TO FOR MORE DEVELOPMENT INCENTIVES AND SOME SPECIAL PROJECTS AND THINGS LIKE THAT. AGAIN, THIS IS JUST A PROJECTION OF HOW WE THINK WE'RE GOING TO END THE YEAR. IT'S VERY LIKELY WE MIGHT NOT EVEN SPEND. AND WE WILL, YOU KNOW, BASICALLY BREAK EVEN OR HAVE MORE REVENUE. BUT TIME WILL TELL. AND THEN THERE'S STILL FINE TUNING. I THINK THE 26 BUDGET AT THIS POINT, BUT THE GOAL IS TO BRING A BALANCED BUDGET TO THE DC-DC BOARD FOR APPROVAL. BUT SOME AGAIN, SOME HIGHLIGHTS THERE. THEY HAVE SOME CONTINUED BEAUTIFICATION SUPPORT. SPECIAL EVENTS INCLUDES

[00:25:04]

THAT ALSO INCLUDES SPONSORSHIPS THAT ARE APPLIED FOR SOME COMMUNITY INCENTIVES. YOU KNOW ALL OF THAT. SO IT'S KIND OF WHERE WE'RE AT, AGAIN, WITH THE ECONOMIC DEVELOPMENT FUND AT THIS POINT, AND WE'RE WORKING VERY HARD ON THEIR STRATEGIES AND THEIR PROCEDURES AND ALL OF THAT, SO THEY CAN BE MORE STRATEGIC ABOUT HOW THEY GIVE OUT THE FUNDS. SO THE FUND BALANCE IS PROJECTED TO BE ABOUT 5.9 MILLION. SO THAT EQUATES TO 617 DAYS IF YOU'RE GOING THROUGH THE EXERCISE. AND WE DON'T HAVE THE EXERCISE THAT WE HAVE TO MAINTAIN 150 DAYS OR SOMETHING.

BUT IF WE WERE, AGAIN, IT EQUATES TO ABOUT 670 DAYS OF EXPENDITURES. SO WE HAVE ABOUT 4.4 MILLION ESSENTIALLY IN EXCESS THAT COULD BE USED FOR VARIOUS ECONOMIC DEVELOPMENT. DO YOU HAVE ANY QUESTIONS ABOUT ECONOMIC DEVELOPMENT AT THIS POINT? ALL RIGHT. JUST SOME OTHER PROJECTS I WANTED TO HIGHLIGHT THAT WILL BE A PART OF THE PROPOSED BUDGET, AS THE PUBLIC WORKS DEPARTMENT IN A RECENT MEETINGS HAVE GIVEN YOU AN UPDATE ABOUT WHERE WE'RE AT WITH ALL OF THE DIFFERENT GRANTS AND REQUESTS AND THINGS. SO THE FIRST GRANT I WANTED TO HIGHLIGHT IS WITH TXDOT PROJECT THE SAFE STREETS FOR ALL PROJECT, WHICH INCLUDES A TRANSPORTATION AND A TRAILS. IT'S KIND OF A SCOPE THAT WAS INCREASED TO INCLUDE PARK TRAILS, FOR EXAMPLE, BECAUSE KIND OF IN THE GRAND SCHEME OF TRANSPORTATION AND MOBILITY. SO EXPECT TO RECEIVE A NOTICE IN THE FALL IF WE GET THAT, THAT THAT PROJECT. SO THAT'S GOING TO BE 224,000. WE GOT TO MAKE SURE IT'S IN THE BUDGET. SO THERE IS STILL SOME RESIDUAL INTEREST INCOME REMAINING ON THE ARPA FUNDS. IT'S NOT FROM THE FUNDS THAT WE RECEIVE FROM THE GOVERNMENT, BUT WE DID ACCRUE INTEREST. SO I'M TRYING TO SPEND ALL OF THAT DOWN SO WE CAN JUST CLOSE AND BE DONE WITH THAT ONE PERMANENTLY. SO IT WILL COME OUT OF THAT BALANCE. ALSO, A PARKS MASTER PLAN UPDATE, AGAIN USING THE RESIDUAL INCOME WAS ABOUT 125,000. AND IT'S IMPORTANT FOR THEM TO HAVE AN UPDATED MASTER PLAN TO BECAUSE WE'RE WORKING ON WATER WASTEWATER, WE'RE WORKING ON DRAINAGE. WE WANT TO MAKE SURE ALL OF OUR MASTER PLANS ARE UP TO DATE, AS IT SETS US UP FOR SUCCESS AS WE PLAN OUT OUR PROJECTS AND THE CIP AND THAT FORECAST. AND THEN LASTLY, I'M NOT SURE WHAT P STANDS FOR. MR. TODD COULD PROBABLY CHIME IN, BUT WE DID GET AWARD NOTIFICATION ON THE WHEATLAND ROAD INTERSECTION IMPROVEMENTS GOING TO USE ONE TIME PROJECT.

WE HAVE SOME REMAINING FUNDS STILL REMAINING IN THE ONE TIME PROJECT FUNDS. IT'S GOING TO COST 110,000. THAT'S OUR MATCHING REQUIREMENT. SO WE HAVE BEEN PUT ON NOTICE THAT WE'VE BEEN AWARDED THAT TXDOT PROJECT. SO I JUST WANT TO MAKE SURE THAT IS KNOWN THAT THOSE WILL BE IN THE PROPOSED BUDGET. DO YOU HAVE ANY WHAT DOES IT STAND FOR CIP. DO YOU KNOW? YEAH. HIGHWAY SAFETY IMPROVEMENT PROGRAM I KNEW, I KNEW, THANK YOU. I WASN'T SURE ANOTHER ONE AGAIN.

SO AND THERE ARE STILL A SLEW OF OTHER PROJECTS THAT WE HAVE TO DEBATE ON WHETHER WE CAN GET IT FUNDED OR NOT. BUT I JUST WANTED TO HIGHLIGHT THOSE THREE FOR SURE, AS THOSE ARE BUILT INTO THE BUDGET. ALL RIGHT. EVERYONE'S FAVORITE TOPIC PROPERTY TAXES. I KNOW THIS IS A VERY PERSONAL THING TO EACH PERSON, YOU KNOW, BECAUSE IT DOES AFFECT YOUR BUDGET PERSONALLY. AND IT'S ALSO. TRAIN OF THOUGHT JUST WENT OUT THE DOOR. BUT IT'S ALSO PERSONAL, MEANING THAT IT AFFECTS EVERYONE IN A DIFFERENT WAY BECAUSE NOT EVERYBODY'S GOING TO HAVE THE SAME VALUE. AND THERE'S DIFFERENT, YOU KNOW, THIS PERSON MAY BE OVER 65, AND THIS PERSON, YOU KNOW, MAYBE JUST HAS THE HOMESTEAD, YOU KNOW, IT'S GOING TO VARY BETWEEN EACH INDIVIDUAL RESIDENT. SO THE NUMBERS I'M GOING TO SHOW TO YOU REALLY IS MORE ON AN AVERAGE, BECAUSE THAT'S WHAT I STATISTICALLY HAVE TO GO. BUT I'LL GIVE YOU SOME SCENARIOS BASED ON A RANGE, BUT JUST KNOW THAT IT'S NOT A ONE SIZE FITS ALL WHEN IT COMES TO PROPERTY TAXES IN TERMS OF HOW MUCH YOU PAY. SO THE FIRST CHART THAT YOU SEE HERE JUST BREAKS DOWN. SO BASED ON AN AVERAGE HOMESTEAD, A HOMESTEAD MEANS YOU OWN THE HOUSE AND YOU LIVE IN IT. YOU'RE NOT RENTING IT OUT.

IT'S NOT COMMERCIAL OR SOMETHING LIKE THAT. YOU ACTUALLY LIVE IN IT. SO THE CITY IS ONLY ONE OF FIVE ENTITIES THAT RECEIVE YOUR TAX DOLLARS. OKAY. AGAIN, THE CITY IS ONLY ONE OF FIVE ENTITIES. SO BASED ON THE 2024 TAX YEAR, WHICH IS THE ONE WE JUST CAME OUT OF BASED ON THE

[00:30:03]

THEY'LL KIND OF DO EVERYTHING IN AGGREGATE AND SAY, THIS IS THE AVERAGE MARKET VALUE, AND THEN THIS IS THE AVERAGE TAXABLE VALUE. SO THE AVERAGE MARKET VALUE FOR OUR CITY WAS 304,000.

SO TAKING THAT AS THE IN THIS EQUATION I KIND OF MAPPED OUT WHAT WHAT THAT HOMEOWNER WOULD HAVE PAID IN TAXES BASED ON THAT VALUE. SO AGAIN THE CITY OUR TAX RATE WAS 0.614. THEY WOULD HAVE PAID $1,800 IN THE CITY PORTION OF THEIR TAXES FOR THE SCHOOL DISTRICT. THEIR TAX RATE WAS 1.10. THEY HAVE THE HOMESTEAD OF 100,000, WHICH REDUCES THEIR TAXABLE LIABILITY. SO BASICALLY IT'S ONLY BEING TAXED ON 204 INSTEAD OF 304. SO THEY WOULD HAVE RECEIVED 2.2 $2,200 OF YOUR TAX BILL. AND THIS IS WHAT'S GOING TO CHANGE COME THIS NEXT TAX SEASON. THIS WILL GO UP TO 140. SO IF YOUR TAXABLE VALUE DOESN'T CHANGE GREAT BECAUSE YOU KNOW THAT MEANS YOU'RE GOING TO ACTUALLY SAVE SOME. AND DALLAS COUNTY PARKLAND HOSPITAL IN DALLAS COLLEGE THEY ALL HAVE A 20% HOMESTEAD. SO IT'S REALLY JUST 20% OF WHATEVER THE VALUE IS COMES OFF THE VALUE. AND THEN THAT'S THE CALCULATION BASED ON THEIR RATE. SO THE TOTAL PROPERTY TAX BILL FOR THIS MARKET VALUE OF 304,000 WOULD HAVE BEEN 5400. OKAY. SO AND HOW THAT BREAKS DOWN AGAIN ON THE ENTITIES AND HOW THE TAXES ARE PAID. SO THE SCHOOL DISTRICT IS 42% OF YOUR BILL AND THE CITY IS 34% OF YOUR BILL. AND THEN THE REMAINING, OF COURSE, GOES TO THE COUNTY, THE HOSPITAL AND THE COLLEGE. AND I WILL GIVE AN EXAMPLE LATER ON ONCE THESE ARE SOLIDIFIED IN TERMS OF RATES, I DON'T WANT TO THROW A BUNCH OF SCENARIOS OUT BECAUSE I JUST DON'T KNOW OBVIOUSLY, WHAT THESE WILL SHAKE OUT TO BE. BUT THIS IS AGAIN BASED ON THIS PAST YEAR. SO HISTORICAL VALUES. THIS GIVES YOU A TEN YEAR SNAPSHOT OF OUR VALUES IN THE CITY. BACK IN 2016, WE WERE JUST BARELY YOU KNOW AND THIS IS TAXABLE VALUE. SO WHEN YOU TAKE ALL THE PROPERTIES IN THE AGGREGATE FOR THE CITY WIDE IT'S LIKE 14,000 PLUS PARCELS, YOU KNOW, AND YOU ADD UP ALL OF THEIR VALUES MINUS WHATEVER EXEMPTIONS AND OTHER THINGS THAT THEY ARE ELIGIBLE FOR. YOU GET THE TAXABLE VALUE AGAIN IN THE AGGREGATE. SO OUR TAXABLE VALUE BACK IN 2016 WAS JUST OVER 1.3 BILLION. FAST FORWARD TO TODAY THAT NUMBER HAS DOUBLED. AS YOU KNOW WITHIN THE DFW METROPLEX. I MEAN, EVERYONE HAS SEEN THE VALUES INCREASE AND WE'VE SEEN SIGNIFICANT INCREASES, ESPECIALLY STARTING IN 21 POST COVID. AND IT'S JUST CONTINUED TO GO UP. I HOPE THAT THEY WILL START TO, YOU KNOW, SLOW DOWN. NOT AN ECONOMIST I CAN'T SPEAK TO SPEAK TO ULTIMATELY WHAT WILL HAPPEN, BUT I CAN'T FORESEE IT CONTINUING TO GO UP IN THE RATE THAT IT HAS BEEN OVER THE LAST FEW YEARS.

BUT SO WHAT DOES THE CENTRAL APPRAISAL DISTRICT IS THE ONE THAT ACTUALLY EVALUATES ALL OF OUR ALL THE PROPERTIES. THE CITY HAS NOTHING TO DO WITH THAT. WE DON'T TELL YOU. WE DON'T SAY HOW MUCH A HOUSE IS WORTH. THAT'S THE APPRAISAL DISTRICT. AND SO THEY TRY TO DO IT EVERY YEAR WHERE THEY'RE DOING THAT, YOU PROBABLY GET THE NOTICES AND YOU'RE LIKE, OH, I DON'T AGREE WITH THIS. I'M GOING TO APPEAL THIS, YOU KNOW, AND THERE'S ALL KINDS OF COMPANIES FACEBOOK, YOU KNOW, MARKETING AT YOU THAT, HEY, YOU KNOW, LET'S LET'S ARGUE YOUR TAX RATE OR TAX BILL. SO WHERE I'M GOING WITH THIS IS THAT THE PRELIMINARY VALUES THAT THEY GIVE US AT THIS POINT IN TIME SHOWS A 12% INCREASE OVER THE 24 VALUES. OKAY. NOW ULTIMATELY I WILL SAY THAT SO THE PRELIMINARY VALUES, THAT'S WHERE WE TRY TO GUESSTIMATE WHEN IT COMES TO THE TAX RATE AND STUFF. BUT ULTIMATELY WHEN IT COMES TO THE CERTIFIED NUMBERS, THERE'S ALWAYS A DROP, YOU KNOW, BECAUSE PEOPLE ARE APPEALING. THERE'S JUST LAST MINUTE ADJUSTMENTS, ALL OF THAT. SO I DON'T EXPECT IT TO STAY AT THE 12%. BUT I WOULD SAY PROBABLY ON AVERAGE ON THE LAST FEW YEARS IT'S BEEN 8 TO 15% OR SO. IT INCREASES, YOU KNOW, ON AVERAGE. SO THAT'S WHERE WE'RE AT RIGHT NOW, AT LEAST WITH IN IN TOTAL FOR THE CITY OF OUR VALUES. AND WHILE THE VALUES ARE SO IMPORTANT, I MEAN NOT THE MOST INTERESTING SUBJECT, BUT WHY WHY IT'S SO IMPORTANT TO UNDERSTAND THE VALUES IS BECAUSE THE VALUES HAVE EVERYTHING TO DO WITH CALCULATING THE TAX RATE. SO THE HIGHER THE VALUES GO, THE LOWER THE TAX RATE IS CALCULATED, BECAUSE IT'S ASSUMING, YOU KNOW, A CAP TO THAT 3.5% GROWTH. AND SO THAT'S JUST KIND OF THAT SEA SALT EFFECT. THE HIGHER THE VALUES GO THE LOWER THE TAX RATE. SO CITY PAY TAXES. WE'RE JUST GOING TO FOCUS NOW ON THE CITY PAY PORTION OKAY. SO THIS IS THE 24 SNAPSHOT BASED ON KIND OF A RANGE OF HOMES. BECAUSE I KNOW NOT EVERYBODY IS IN THAT ONE AVERAGE TAXABLE SPOT. SO WHAT THIS SHOWS YOU AGAIN IS OUR

[00:35:05]

OKAY, A $450,000 HOME, $7.58. OKAY. AND THEN IF YOU'RE OVER 65 OR DISABLED, WE DO HAVE A HOMESTEAD EXEMPTION. IT'S 40,000 THAT COMES OFF THE COMES OFF THE VALUE. AND SO THAT'S WHAT THAT ANNUAL WOULD LOOK LIKE. I JUST KIND OF WANTED TO SHOW YOU A RANGE SO YOU CAN GET AN IDEA OF KIND OF WHERE YOU MIGHT HAVE FALLEN. OKAY. SO JUST KIND OF SHOWING YOU BRIEFLY HERE THE HISTORICAL TAX RATES AND THE HISTORICAL FAMILY AVERAGE TAXABLE VALUE. THIS IS A STAT THAT AGAIN THE CENTRAL APPRAISAL DISTRICT WILL PUBLISH. AND WE USE THIS KIND OF IN THESE GRAPHICS BECAUSE TO US YOU KNOW THAT THIS IS WHAT THE CITY IS GETTING ON AVERAGE PER RESIDENT.

AGAIN I KNOW THAT VARIES FROM PERSON TO PERSON, BUT ON AVERAGE THE TAXABLE VALUE, THIS IS WHAT THAT LOOKS LIKE. I DIDN'T REALLY WANT TO ESTIMATE FOR 26 BECAUSE AGAIN, I'M NOT REALLY SURE.

ULTIMATELY WHAT WOULD SHAKE OUT MAYBE MAYBE 8%, WHICH IS ABOUT 263 COULD BE THAT AMOUNT. BUT AGAIN, I DON'T KNOW. BUT ESTIMATING THE RATE RIGHT NOW COULD BE BETWEEN $0.58 TO $0.60.

SO AGAIN, AGAIN, IT JUST DEPENDS ON WHERE THE VALUES SHAKE OUT. ALL RIGHT. SO IN OUR PRELIMINARY BUDGET OF COURSE WE'RE ASSUMING THE VOTER APPROVAL RATE, THE TAX RATE THAT WE CAN GO TO. AND LIKE I'VE ALREADY ITERATED THAT THE PRELIMINARY VALUES ARE 12% HIGHER THAN THE CERTIFIED VALUES THAT WE HAD LAST YEAR. AND LIKE I SAID, THE TAX RATE DEPENDS ON ULTIMATELY THE VALUES. ALL RIGHT. SO I WANTED TO TALK KIND OF THROUGH A LITTLE BIT LIKE WHERE DOES MY TAX GO? I DON'T KNOW IF YOU GET THAT THAT QUESTION OR IF YOU HAVE THAT QUESTION YOURSELF, BUT YOU WANT TO UNDERSTAND LIKE WHAT IS MY $1,500 YOU COULD GO TO? I DON'T UNDERSTAND WHAT IT'S BEING USED FOR. SO I HAVE A COUPLE OF WAYS TO KIND OF BREAK THIS DOWN JUST TO KIND OF PUT THAT IN PERSPECTIVE. SO WHAT I DID IS SO 1500 WAS THE AVERAGE AMOUNT. AND TAKING OUR GENERAL FUND CURRENT CURRENT BUDGET, NOT THE 26 BUDGET BUT THE CURRENT BUDGET. SO BASED ON HOW THE DEPARTMENTS BREAK OUT FOR THEIR SHARE OF THE GENERAL FUND, THIS IS KIND OF HOW WHERE THE MONEY GETS ALLOCATED. SO 30% OF YOUR FUNDS ARE GOING TOWARDS POLICE AND 21% IS GOING TOWARDS FIRE. THAT MAKES SENSE. AT LEAST 50% OF YOUR TOTAL TAX CITY PAID PORTION IS GOING TOWARDS PUBLIC SAFETY.

OKAY. AND THEN YOU HAVE 21% GOING TOWARDS PUBLIC WORKS, STREETS, TRAFFIC, THAT SORT OF THING. AND THEN THE REMAINING ESSENTIALLY REMAINING QUARTER GOES TOWARDS ADMINISTRATION, QUALITY OF LIFE STUFF. AND I BROKE IT OUT BY THE ANNUAL AMOUNT AS WELL AS THE DAILY COST. AGAIN, JUST TO PUT IT IN PERSPECTIVE OF HOW MUCH YOU ARE PAYING TO HAVE THESE SERVICES WHEN YOU NEED THEM TO DEMONSTRATE ITS GOOD VALUE. ANOTHER WAY TO THINK OF IT JUST YOU MAY LIKE THIS WAY OF LOOKING AT IT, OR YOU MAY HATE IT. I DON'T KNOW, I'M GOING TO TRY IT OUT, BUT WHEN I WAS THINKING OF ANOTHER WAY TO KIND OF CONVEY WHAT I WANTED TO CONVEY ABOUT BEST VALUE OF THIS STUFF, OF WHAT YOU'RE PAYING FOR WITH YOUR TAXES, YOU MIGHT HAVE HEARD IN BUSINESS SCHOOL THE MASLOW'S HIERARCHY OF NEEDS. YOU KNOW, IT'S LIKE YOU START WITH YOUR FUNDAMENTAL NEEDS. THAT'S YOUR BASIC NEEDS. THAT'S LIKE YOUR FOOD, YOUR WATER. YOU GOT TO HAVE THOSE OR YOU'RE NOT GOING TO LIVE. RIGHT. AND THEN IT KIND OF WORKS ITS WAY UP TO, YOU KNOW, I HAVE EVERYTHING I NEED. SO I AM ENLIGHTENMENT. I'M UNFULFILLED. RIGHT. SO KIND OF THINKING THAT IN THE PERSPECTIVE OF THE FUNCTION, THE, THE SERVICES WE OFFER. SO THE BASIC FUNDAMENTAL NEED THAT I THINK CITIZENS HAVE IS PUBLIC WORKS, STREETS, YOU KNOW, INFRASTRUCTURE, UTILITIES, THEY WANT WATER TO THEIR HOUSE. THEY WANT GARBAGE TAKEN AWAY. THEY WANT STREETS TO DRIVE ON. THOSE ARE LIKE FUNDAMENTAL BASIC NEEDS. OF COURSE, UTILITIES AND SANITATION IS COVERED THROUGH OTHER SOURCES. SO IT'S NOT NECESSARILY FACTOR HERE, BUT WHAT IS FACTORED IN YOUR TAX BILL IS STREET AND STREET MAINTENANCE. SO 8% OF YOUR FUNDS GOES TOWARDS THAT BASIC NEED OKAY. AND THE NEXT STEP IS THE SAFETY AND SECURITY NEEDS. SO YOU KNOW THE QUALITY OF LIFE STUFF IS NOT GOING TO MATTER IF YOU DON'T FEEL SAFE OR YOU'RE NOT SECURE OR YOU DON'T. YOU DON'T HAVE THOSE KIND OF THINGS IN PLACE. SO 45% OF YOUR TAX BILL GOES TOWARDS POLICE, FIRE, TRAFFIC. THOSE THINGS THAT I CAN I AM JENNIFER SPEAKING CONSIDER TO BE SAFETY RELATED THINGS. AND THEN THE NEXT LEVEL UP IS REALLY THE ADMINISTRATION OVERSIGHT.

YES SIR. SORRY. SO DEFINE TRAFFIC I MEAN I UNDERSTAND, BUT WHAT WHAT WHERE ARE YOU CALLING

[00:40:03]

[00:45:04]

THAT'S KIND OF LIKE YOUR BASE. AND THEN STILL $0.01 LESS ON IN GROWTH. THAT GAP AS YOU CAN SEE, WIDENS OVER TIME. SO WHAT THIS CONVEYS THIS WOULD BE LIKE $0.01 LESS EVERY YEAR. SO BY YEAR FIVE THAT ULTIMATELY COULD BE ABOUT 3.2 MILLION. THAT REVENUE THAT WE'RE MISSING OUT ON TO THE CITY TO DO ALL THOSE THINGS THAT YOU JUST SAW, THAT WOULD BE KIND OF THE LONG TERM EFFECT, OR AT LEAST THE NEXT FIVE YEARS OF REVENUE THAT'S LOST. OKAY. SO WHAT DOES THAT LOOK LIKE IN TERMS OF THE AVERAGE HOMEOWNERS REDUCTION IN THEIR TAXES? ABOUT $0.01, AND I PROBABLY SHOULD HAVE CALCULATED THAT. BUT NOT KNOWING WHAT THE RATE WOULD HAVE BEEN. I MEAN, IF YOU THINK OF LAST YEAR WHEN WE DID THAT CHART THAT I SHOWED THAT YOU PROBABLY REMEMBER THAT $0.01 OFF THE TAX RATE WAS APPROXIMATELY 300, 350,000 MAYBE, AND IT WAS ABOUT A REDUCTION OF 30 TO $40. YOU KNOW, ON THE AVERAGE HOMEOWNER AT THAT TIME. SO OVER TIME, OF COURSE IT'S GREAT, BUT IT'S A BIG IMPACT TO THE CITY AND ITS OPERATIONS. BUT I CAN RE DO THAT AND MAKE SURE I HAVE THAT FOR YOU TO HAVE TO SEE. BUT I DIDN'T CALCULATE THAT FOR THIS. WE HAD TALKED ABOUT SOME NUMBERS, BUT ESSENTIALLY GOING BACK TO JUNIPER'S STARBUCKS ANALOGY, IT'S LESS THAN A CUP OF COFFEE PER MONTH WOULD BE THE DIFFERENCE TO REDUCE. BY THE WAY, THAT WAS A SMALL CUP, RIGHT? THAT WAS A SMALL CUP THAT WASN'T THE VENTI IS FOR THE 450,000 HOMEOWNER, YOU KNOW.

OKAY. OKAY. SO WHAT I ATTEMPTED HERE JUST TO KIND OF WRAP UP THE PROPERTY TAX CONVERSATION IS REALLY WHAT THAT ESTIMATED IMPACT COULD LOOK LIKE TO THE AVERAGE RESIDENT. SO WITH ALL THE DIFFERENT THINGS THAT YOU DO PAY FOR THE CITY FOR CITY SERVICES. SO WATER, SEWER, FOR EXAMPLE, BASED ON A UNDER 65 PERSON THAT USES 6000 GALLONS A YEAR, AS YOU KNOW, WE'RE GOT A FIVE YEAR WATER RATE INCREASE ORDINANCE IN PLACE. SO THIS GOING INTO 26 WOULD BE THE FOURTH YEAR OF THAT. SO I'M ASSUMING THAT INCREASE. SO 6000 GALLONS OF WATER AND THEN THE SEWER THAT GOES ON TOP OF THAT FOR 6000 GALLON USAGE COULD EQUATE TO $8 MORE A MONTH.

AGAIN, THAT VARIES FROM PERSON TO PERSON DEPENDING ON HOW MUCH USAGE THEY HAVE ON THE GARBAGE SITE. SO WE'RE EXPECTING A 5% CPI INCREASE, UP TO 5% ON THE GARBAGE COLLECTION, SO PASSING THAT ALONG WOULD RESULT IN ABOUT $1 ONE AND A HALF DOLLARS FOR CURBSIDE. CURBSIDE SERVICE ON THE DRAINAGE SIDE, NOT CHANGING ANY RATES THERE. SO THE TOTAL UTILITY MONTHLY IMPACT COULD LOOK LIKE $10 MORE A MONTH FOR UTILITY SERVICES. SO ON THE PROPERTY TAX, AGAIN, UTILIZING WHAT AN AVERAGE TAXABLE PERSON AMOUNT WOULD BE, IT'D BE AN INCREASE ABOUT $8 A MONTH. SO THAT TOTAL MONTHLY IMPACT INCREASE IS $1,819 PERHAPS. BUT AGAIN THIS THIS COULD VARY WITH RANGE DEPENDING ON THE PERSON AND THE USE. SO BUT JUST KIND OF WANT TO SHOW YOU WHAT THAT MIGHT LOOK LIKE. ANY QUESTIONS. IF WE REDUCED IT TO $0.01. IF WE REDUCED IT BY $0.01, WOULD THAT IMPACT SOME SERVICES THAT WE CURRENTLY RECEIVE? AND IS IT POSSIBLE POTENTIAL IMPACT ON THE SERVICE LEVEL THAT WE RECEIVE CURRENTLY? AND YOU KNOW, IT'S DEFINITELY POSSIBLE BECAUSE IT'S LESS REVENUE THAT WE'RE BRINGING IN AND OUR REVENUES. AND YOU'LL SEE HERE IN A LITTLE BIT OUR REVENUES ARE NOT KEEPING UP TO OUR EXPENSES. WE HAVE LIKE EVERYBODY ELSE, THEIR EXPENSES IS GOING UP AND WE DON'T HAVE THE REVENUE TO OFFSET IT. SOMETHING'S GOT TO GIVE. AND WHAT IS THAT? YOU KNOW, THAT'S A BIGGER DISCUSSION. SO THE $0.01 EQUATES TO JUST KEEP IN MIND THIS IS BALLPARK $400,000. SO YOU'RE GOING TO CUT IT BY A PENNY. THAT'S A REDUCTION OF $400,000 IN REVENUE. THAT MEANS WE HAVE TO CUT 400,000 IN EXPENSES. THAT HAS TO COME FROM SOMEWHERE. UNLESS YOU KNOW OF A POT SOMEWHERE WE JUST DON'T THINK ABOUT. IT'S JUST GETTING MORE AND MORE CHALLENGING. MAYBE NOT. OKAY, SO MOVING ON TO GENERAL FUND. THIS WILL BE KIND OF THE BULK OF OUR CONVERSATION TODAY IS TALKING ABOUT THE GENERAL FUND AND LUMINARY OUTLOOK AT THIS POINT AS WE KNOW IT. OKAY. SO HERE'S THAT ACTUAL CHART AGAIN, JUST TO KIND OF

[00:50:03]

AND THEN IN 22, 7% IN REVENUE. THAT WAS MAINLY BECAUSE OF SALES TAX. THAT WAS THE TIME WHEN WE WERE RECEIVING A LOT MORE BECAUSE OF INFLATION. THAT'S NOT SOMETHING WE COULD HAVE REASONABLY HAD PROJECTED. BUILDING THE BUDGET. WHEN WE LOOK AT 23 AND 24, AGAIN, 8%, 5% MORE REVENUE, THE MAIN DRIVER OF THAT WAS INTEREST. INTEREST INCOME. YOU'VE SEEN SOME REALLY GOOD RATES IN THE LAST COUPLE OF YEARS. AGAIN, GOING INTO 23, ESPECIALLY OFF OF THE TAIL END OF ALL THE COVID AND THE AFTERMATH OF THAT. THE RATES WERE SO LOW, YOU KNOW, BEFORE THEN. SO WHEN WE START GETTING SOME REALLY GOOD RETURNS ON THOSE INVESTMENTS, AGAIN, NOT SOMETHING THAT WE KIND OF REASONABLY HAVE PROJECTED AND THAT HAS CONSIDERABLY ADDED TO OUR FUND BALANCE GREW AS THOSE TWO SOURCES OF REVENUES AT THAT TIME PERIOD. BUT WHEN WE LOOK AT 25, ESPECIALLY BEYOND, I MEAN, YOU'RE PROJECTING A LOT MORE ACCURATELY WITH THOSE REVENUE SOURCES. SO THERE'S GOING TO BE PROBABLY AN ANNUAL FLUCTUATION, IF THAT MAKES SENSE, ON THIS BUDGET RIGHT HERE. YES. 2025. YEAH. BUT WHAT I'M SAYING, IN TERMS OF WHAT WE PROJECT VERSUS WHAT WE MIGHT ACTUALLY RECEIVE, IT'S NOT GOING TO BE AS SIGNIFICANT AS IT HAS BEEN IN PREVIOUS YEARS. OKAY. SO PRELIMINARY REVENUES, AS YOU KNOW, WE HAVE A VARIETY OF DIFFERENT REVENUES. BUT THE MAIN TWO, AS YOU YOU KNOW, CAN AND 56% IS PROPERTY TAX. SO OVER HALF OF THE REVENUES THAT WE BRING IN RELY HEAVILY ON PROPERTY TAX. THAT'S THE SYSTEM IN WHICH WE FIND OURSELVES IN ALMOST A QUARTER IS SALES TAX. EVERYTHING ELSE QUARTER. THERE IS ALL THOSE OTHER THINGS AND THESE OTHER THINGS REALLY ARE MORE OFFSETTING SERVICES. SO, YOU KNOW, PAYING FOR A PERMIT, THAT KIND OF THING PAYS FOR THE SERVICES OF PERMITTING, FOR EXAMPLE. BUT AGAIN, ALMOST 80% OF OUR BUDGET IS PROPERTY TAX AND SALES TAX WHEN IT COMES TO REVENUE. SO SALES TAX PROJECTION WHAT YOU SEE HERE. IT'S A LOT OF STUFF ON THIS CHART. I ADMIT THIS COMES FROM HDL, WHICH IS THE COMPANY WE USE THAT ANALYZES OUR SALES TAX, ANALYZES THE ECONOMY AND THE GROWTH AND WHAT WE CAN EXPECT TO SEE FROM SALES TAX. SO THIS CHART RIGHT HERE SHOWS SALES TAX COLLECTIONS BY INDUSTRY SEGMENT. SO THESE ARE OUR SALES TAX GENERATORS OKAY.

SO ALMOST HALF 49% ESSENTIALLY COME FROM THE RETAIL TRADE. THAT'S YOUR BRICK AND MORTAR STORES GROCERY STORES LUMBER. ALL THOSE DIFFERENT THINGS FALL INTO THAT TO THAT CATEGORY. AND THEN YOU CAN SEE HOW 17% IT HAS TO DO WITH LODGING AND RESTAURANTS. YOU HAVE UTILITIES IN THERE. SO THAT'S KIND OF HOW OUR SEGMENTS BREAK OUT. SO YEAR TO DATE WE'VE RECEIVED SIX MONTHS WORTH SEVEN MONTHS WORTH OF SALES TAX. THIS YEAR SO FAR WE'RE TRENDING AT 6% OVER LAST YEAR WHICH IS GOOD. I HOPE THAT CONTINUES. BUT MY MAGIC BALL TO LOOK INTO. BUT HOPE THAT THAT TREND CONTINUES AS WE'LL END, YOU KNOW, REALLY WELL OVER LAST YEAR, LAST YEAR WE ENDED UP ABOUT 1.5% OVER THE PREVIOUS YEAR. SO THAT'S WHY WE WERE PRETTY CONSERVATIVE WITH OUR PROJECTION IN THIS YEAR'S BUDGET, BECAUSE WE WERE COMING OFF OF WE WEREN'T SEEING VERY MUCH OF PROFIT, BUT RIGHT NOW WE ARE SO HDL PROJECTS THAT INTO THIS FISCAL YEAR WOULD BE ABOUT 2.5% GROWTH OVER THE PREVIOUS YEAR. AND SO THIS ESTIMATE HERE IS WHAT THEY PROJECT OVER 25. SO INTO 26. AND THIS IS THIS JUST MAPS OUT PER MONTH BASED ON ALL OF THESE INDUSTRIES. ARE THEY

[00:55:07]

[01:00:05]

[01:05:07]

ASSUMPTION THAT WE HAVE FOR EXPENDITURES, IT WAS REINSTATING THOSE CUTS THAT WE HAD FOR THIS FISCAL YEAR. ON THE MAINTENANCE SIDE WITH PARKS, SPECIFICALLY WITH THE MOWING CONTRACT, WE'VE SEEN THE TREND CONTINUE TO INCREASE IN TERMS OF WHAT THE CONTRACTUAL SERVICES EXPENDITURES WOULD BE FOR THE MOWING OF OUR PARKS AND OUR RIGHT OF WAYS. AND SO THE TREND IS CONTINUING TO INCREASE AS BART AND HIS TEAM HAS ALREADY HAD CONTINUED ANALYSIS OF WHERE THOSE CONTRACTS ARE GOING TO GO. WE KNOW THAT THAT NUMBER, IF WE CONTINUE TO OUTSOURCE ALL OF OUR MOWING, THAT THAT NUMBER IS GOING TO CONTINUE TO RISE. SO THIS BUDGET ACCOUNTS FOR THAT AS WELL. CERTAINLY ON THE UTILITY SIDE, WE'RE SEEING INCREASES IN OUR ELECTRIC RATE, OUR GAS RATE, AS WELL AS OUR WATER RATE THAT THE CITY PAYS OUT FOR, FOR THOSE SERVICES, SPECIFICALLY, USAGE INCREASES. ONE OF THE HIGHLIGHT, CERTAINLY THE SPLASH PAD, AS WELL AS THE USE OF OUR OLD FIRE STATION. AND SO AS A RESULT OF THAT, WE'RE SEEING INCREASES JUST JUST TO NAME A FEW IN TERMS OF INCREASES TO OUR UTILITY RATES, AS WELL AS POINTING OUT THAT IN 2026, AT THE BEGINNING OF CALENDAR YEAR 2026, WE'RE FORECASTING AN INCREASE TO THE ELECTRIC RATE OF 7.5%. YES, MA'AM. SO SALARY AND BENEFITS, POLICE AND FIRE. IS THIS AN EXPLANATION OF THE 4.5 MILLION DEFICIT, OR IS THIS SO I'M CONFUSED BECAUSE I THOUGHT THAT WAS BUDGET NEUTRAL. SO HELP ME UNDERSTAND. I REMEMBER I REMEMBER COMPLIMENTING THAT THEY WERE ABLE TO FIND IT WITHIN THEIR BUDGET. SO THAT SO IS THIS TO SUSTAIN IT AND TO CARRY IT FORWARD TO 2026? CORRECT. THIS IS THE FIRST OKAY. SO THIS WOULD SO FOR THE REMAINDER OF THIS FISCAL YEAR, WE WERE ABLE TO BE BUDGET NEUTRAL. WHEN WE LOOK AT ANNUALIZING THAT OVER 2026 THAT IS WHERE THE INCREASE WOULD OCCUR. SO THIS WOULD BE AS AGAIN AS DOUG STATED AS OF TEN ONE, AND IT WAS NECESSARY TO DO SO BECAUSE WE WERE SO BEHIND OTHER CITIES IN SALARY. CORRECT. AND SO IN TERMS TO RETAIN THE KNOWLEDGE THAT WE HAD BEEN PAYING FOR WITH THE TRAINING AND TO RETAIN THAT HERE, IT WAS NECESSARY THAT WE DO THE 5%, WE JUST ABLE TO FIND IT IN OUR CURRENT BUDGET. BUT MOVING FORWARD TO CARRY THAT OUT, IT WILL CAUSE AN INCREASE. YES, MA'AM. SO DEFINITELY FROM A RECRUITMENT AND RETENTION STANDPOINT WITH OUR EXISTING OFFICERS, IT WAS NECESSARY. SO AGAIN, TO HOPEFULLY HELP NOT ONLY ON THE RECRUITMENT SIDE BUT DEFINITELY ON THE RETENTION SIDE AND HOPEFULLY PREVENT ANY TYPE OF REVOLVING DOOR. WE TRAIN THEM ONLY FOR THEM TO MOVE ON TO ANOTHER MUNICIPALITY OR ANOTHER POLICE AGENCY. IF I, IF I REMEMBER THAT WAS ONLY AN EFFORT TO GET US TO 5%. BUT WE WERE ACROSS THE BOARD. WE WERE CORRECT. SO JUST TO PIGGYBACK ON THIS WHOLE CONVERSATION. SO THAT GOT US UP TO BASICALLY A MIDPOINT, FOR INSTANCE, THAT PUTS US BASICALLY ALMOST THE EXACT SAME. SO FOR INSTANCE, WE'RE STILL BEHIND CEDAR HILL.

WE'RE ACTUALLY STILL A LITTLE BIT BEHIND LANCASTER IN TERMS OF THAT. BUT THAT JUST GOT US UP THERE. BUT ALSO KEEP IN MIND THE OTHER THING, AND RICHARD MENTIONED IT, THAT INCREASE WAS JUST ALSO HELPED WITH RETENTION. SO THE EXAMPLE THAT WE GAVE YOU IS WE LOST A POLICE OFFICER WHO

[01:10:03]

WE'RE MIDDLE TO THE LOWER SIDE. AND I'M IN SUPPORT OF IT. I JUST WANT TO MAKE SURE THAT, NUMBER ONE, WE CAN SUSTAIN IT WITH THE CURRENT REVENUE THAT WE HAVE COMING IN, THAT THIS IS SOMETHING THAT CAN BE BUILT IN THE BUDGET AND BE COVERED. DID WE EVER GET AND I THINK IT'S IMPORTANT ALSO THAT WE EXPLAIN IT TO THE PUBLIC WHY WE HAD TO DO IT AND WHY WE'RE CONSIDERING ADDITIONAL CONSUMER PRICE INDEX. DO WE EVER GET A DEFINITION OR A RATE FOR THE IT'S IT WOULD BE THE NATIONAL. SO AS WE GET CLOSER ON THIS WE'LL HAVE THE NUMBER. BUT IT'S PROBABLY GOING TO BE SOMEWHERE IN THAT 3% GIVE OR TAKE. SO CAN I HAVE A QUICK QUESTION TOO ON THE ON THE 5% MEDICAL INSURANCE INCREASE. THAT'S TO THE CITY, TO THE EMPLOYEE AT ALL. I JUST DIDN'T SEE. SO THIS 5% ASSUMES TO THE TO THE CITY. YES. LET ME JUMP IN ON THAT. WE WILL BE MEETING IN JULY WITH OUR BROKER, AS WE DID PUT AN RFP OUT ON THE STREET FOR THE INSURANCE BECAUSE WE'RE PROJECTING AN INCREASE, EVEN LARGER INCREASE. SO WE NEED TO PUT THAT OUT ON THE STREET GETTING PROPOSALS SO WE'LL BE ABLE TO IRON OUT ULTIMATELY WHAT WE'RE ABLE TO DO, WHAT GETS PASSED TO THE EMPLOYEE VERSUS THE CITY. ANY ANY OTHER QUESTIONS? I JUST HIGHLIGHT HERE, RICHARD MENTIONED THE UTILITY RATE INCREASE, THE ELECTRIC SPECIFICALLY AND SOME OF THAT RICHARD ABERNATHY, ABERNATHY AND ACM RAUSCHER ARE WORKING WITH THE TEAM TO. WE JUST HAD A PRELIMINARY ENERGY AUDIT. THAT'S SOMETHING THAT WE'RE REALLY LOOKING AT TO SEE, YOU KNOW, WHAT IMPROVEMENTS CAN BE DONE TO ALL OF OUR FACILITIES TO REDUCE OUR ELECTRIC CONSUMPTION. AND SO WE'LL BE BRINGING YOU BACK SOME ADDITIONAL STUFF IN THE FUTURE ON THAT, SO THAT HOPEFULLY WE CAN HELP MITIGATE SOME OF THAT. AND THAT RATE INCREASE IS PROJECTED. DID THAT COME FROM THE. CONGLOMERATE THAT WE'RE ASSOCIATED WITH IS THAT AND THERE'S A BOOK THAT JUST LANDED ON MY DESK TODAY, BROUGHT IT TO ME FROM ONCOR OF THEIR PROJECTED RATE INCREASE. AND I'M NOT EVEN JOKING. IT'S ABOUT THAT THICK. SO, YOU KNOW, I'M GOING TO SPEAK FOR A CITY EMPLOYEE AS SOON AS WE GET A RAISE. HERE COMES THE MEDICAL, EVEN THAT RAISE UP. SO I'M JUST GOING TO PUT IT OUT THERE. WELL THAT'S THAT'S THAT WAS PART OF MY QUESTION. JUST IN CASE. OKAY. SO MOVING TO THE LAST PORTION OF THIS SLIDE IN TERMS OF IT REPLACEMENT, WE HAD.

SO TYPICALLY HISTORICALLY WHAT WAS TRANSPIRED IS THERE'S A PORTION OF EXPENDITURE FROM EACH DEPARTMENT'S BUDGET THAT GOES INTO THE IT REPLACEMENT FUND TO HELP SO THAT IT'S NOT SO MUCH OF AN IMPACT IN THE IN THE YEARS THAT IT HAS TO REPLACE VARIOUS EQUIPMENT, LAPTOPS, DIFFERENT DEVICES THAT IS NECESSARY FOR OPERATIONS OF EACH OF OUR DEPARTMENTS. AGAIN, AS PART OF BALANCING THE BUDGET, WE TOOK THAT REPLACEMENT OUT FOR 2025 IN TERMS OF THAT CONTRIBUTION. AND SO THIS ASSUMES THAT THAT WILL BE PUT BACK IN FOR 26. AND THEN AS WELL AS PART OF THE BALANCING AND NOT USING FUND BALANCE AS PART OF 25, WE DID THE SAVINGS TARGET THAT WE PUT IN FOR THIS YEAR, WHICH WERE STILL MOVING FORWARD WITH WHAT FOR 26, WE'RE REMOVING THAT SAVINGS TARGET

[01:15:05]

BUT OVERALL, WE'RE LOOKING AT APPROXIMATELY $90,000 IN SAVINGS FOR 26 VERSUS 25. SOME PROPOSED ADDITIONS THAT WE WANTED TO AT LEAST MAKE THIS COUNCIL AWARE OF. AGAIN, WE TALKED ABOUT THE FIRST THREE BULLET POINTS ALREADY, BUT MOVING OUT IN TERMS OF SALARY AND BENEFIT ADDITIONS.

ON THE MRS. SIDE, WE TALKED AT AT THE I GUESS AT THE TIME OF FORMING THE 25 BUDGET IN TERMS OF RATE INCREASE FOR THE COST OF LIVING ADJUSTMENT IN TMRS FOR RETIREES SPECIFICALLY. YOU KNOW, WE HAD SOME INDIVIDUALS FROM THE COMMUNITY THAT SPOKE ON THE TOPIC. IT WAS AT THAT TIME THAT THAT THE COUNCIL HAD DISCUSSED HAVING A STAGGERED INCREASE TO BRING US UP TO THE MAX BENEFIT, DEFINITELY IN COMPARISON TO OTHER MUNICIPALITIES AROUND US. AND SO TRYING TO BUILD IN A 2% RATE INCREASE TO BRING UP TO THE MAX BENEFIT, JUST AGAIN, CONTINUING ALONG WITH THE DISCUSSION THAT WE HAD LAST YEAR. AGAIN, AS JENNIFER JUST ALLUDED TO ORIGINALLY, WE HAD AA5 PERCENT INCREASE BASED ON SOME OF THE EARLY RETURNS DISCUSSION WISE. INTERNALLY, WE'RE PROJECTING THAT MEDICAL INSURANCE EXPENDITURE INCREASE TO BE MORE IN THE RANGE OF 10 TO 12%. SO MAKING SURE TO ACCOUNT FOR THAT IN AS WE'RE FINALIZING THE BUDGET, AS WELL AS FROM OUR MATRIX REPORT THAT SPOKE SPECIFICALLY IN OUR PUBLIC SAFETY AREAS, IN TERMS OF THE CITY'S NEED FOR ADDITIONAL POLICE AND FIREFIGHTERS, RESPECTIVELY. SO AGAIN, WE HAVE THE INFORMATION WE DEFINITELY WANT TO SHOW THAT WE'RE MOVING ON. THE INFORMATION THAT WE'VE RECEIVED VIA THE REPORT. SO IN TERMS OF OUR FINAL BUDGET THAT WE'RE SUBMITTING, WE ALSO WANT TO HAVE TWO ADDITIONAL FIREFIGHTERS, TWO ADDITIONAL POLICE OFFICERS THAT WE'RE LOOKING TO BE A PART OF THE 26 BUDGET. AGAIN, IN OUR EFFORTS TO KEEP WITH THE RESULTS OF THE MATRIX REPORT. RICHARD, LET ME JUST JUMP A QUICK SECOND THERE. SO WHAT I ASK THE TEAM TO DO WAS GO AHEAD AND ADD AGAIN. REMEMBER, WE HAVEN'T FINALIZED THE BUDGET PROPOSAL TO YOU YET.

SO WHAT I'VE ASKED THEM TO DO IS ADD IN THE TWO POLICE OFFICERS AND THE TWO FIREFIGHTERS, AS YOU SAID, VERY MUCH IN KEEPING WITH MATRIX REPORT. LET'S SEE IF WE CAN GET THOSE THROUGH AND STILL DELIVER YOU A BALANCED BUDGET. THOSE ARE SOME OF THE QUESTIONS THAT WE'RE STILL WORKING THROUGH. THE TWO POLICE OFFICERS, SPECIFICALLY THE MATRIX REPORT TALKED ABOUT THAT AREA. IF YOU REMEMBER, THERE WAS A GRID IN THAT THAT TALKED ABOUT THE AFTERNOON HOURS THAT WE DON'T HAVE ENOUGH OFFICERS. AND SO WE NEEDED THE ADDITIONAL POLICE OFFICERS THERE. THE MATRIX REPORT ALSO TALKED ABOUT THE NEED FOR MAYBE EVENTUALLY A THIRD FIRE STATION. I KNOW WHEN

[01:20:01]

CORRECT. I MEAN, THE COMPARISONS LOOK THE SAME IF YOU GO BACK 24, 23, 22, LIKE FOR PUBLIC WORKS, THEY HAVE SOME PRETTY BIG PROJECTS IF I CAN JUMP IN HERE. SO I DID A PRELIMINARY ANALYSIS LOOKING AT THIS BECAUSE I REALLY WANTED TO SEE HOW WE COMPARED. AND SPECIFICALLY, YES, THE CITY OF DUNCANVILLE, GENERALLY SPEAKING, GENERAL FUND EXPENSES OVER THE YEARS SPENDS MORE OUT OF THE GENERAL FUND THAN ANY OF THE OTHER CITIES IN THE SOUTHWEST. BUT WE DON'T SPEND MORE ON PUBLIC WORKS THAN THE OTHER CITIES IN THE SOUTHWEST. AND THAT'S WHERE WE WANT TO ALSO HAVE THIS DISCUSSION ABOUT STRATEGY, WHERE RICHARD IS GOING WITH THIS. I JUST WAS IN LANCASTER LAST NIGHT FOR A MEDIUM, SPEAKING WITH OUR FINANCE DIRECTOR FOR A WHILE, AND HE'S AND WE STARTED TALKING ABOUT THIS AND HE SAID, WE'VE ALWAYS WONDERED WHY THE CITY OF DUNCANVILLE PAID SO MUCH OF THEIR PUBLIC WORKS OUT OF THE GENERAL FUND. WE PUT IT IN THE UTILITY FUND, AND THAT'S WHAT CEDAR HILL DID. AND SO, YOU KNOW, RICHARD ABERNATHY HAS STARTED REALLY DIGGING INTO THAT WITH RICHARD JACKSON TO REALLY DIG INTO THE DETAILS OF IT. SO DO WE SPEND MORE ON PUBLIC WORKS THAN THE OTHER CITIES? NO, BUT WE ALLOCATE MORE TO THE GENERAL

[01:25:05]

BUT YES, THEY HAVE. THEY LITERALLY FUND THEIR THEIR ENTIRE ADMINISTRATION, THE UTILITY FUND. AND A LOT OF THE WORK THEY DO IS UTILITY RELATED. I MEAN, YOU COULD ARGUE IT HERE, TOO, THAT A LOT OF OUR TEAM DOES DO A LOT OF INFRASTRUCTURE ADMINISTRATION WISE FOR THE UTILITY FUND. SO IT'S SOMETHING THAT MR. JACKSON I'VE BEEN LOOKING INTO AS FAR AS A STRATEGY FOR HOW TO UTILIZE THE UTILITY FUND FOR WHICH IS APPROPRIATE EXPENSES, AND THAT COULD BE A GAME CHANGER THAT COULD SAVE, NOT THAT 9.17 MILLION DOWN, DEPENDING ON WHAT WE SPEND WELL, IN IN JUST A QUICK SECOND ON THIS. SO WE'VE REALLY BEEN TALKING ABOUT STRATEGY. WHAT THIS LOOKS LIKE PHASING THIS IN OVER LIKE A FIVE YEAR TIME PERIOD. RIGHT. BECAUSE WE'VE ALSO GOT ARMY COMING ON BOARD. WE ALL KNOW THAT. RIGHT. AND THEN WHAT THAT LOOKS LIKE IS THAT CHANGES. AND SO WE'RE REALLY CLOSELY ALSO LOOKING AT WHAT IS THE BOTTOM LINE IMPACT TO THE HOMEOWNER TO THE PROPERTY TAXPAYER. YOU'VE ALREADY SET UTILITY RATES, BUT IS THERE ENOUGH TO START BRINGING THAT ON. AND AS WE START RECLAIMING AND STOP LOSING SO MUCH WATER THAT THAT'S ALL PAID FOR OUT OF THE UTILITY FUND? THINK OF THE MILLIONS OF DOLLARS, HONESTLY, THAT IS BEING LEAKED ALL OVER THE CITY THAT THAT WILL BE ADDITIONAL REVENUE, THAT WE CAN THEN START PULLING DOWN THE EXPENSE IN THE GENERAL FUND AND MOVING OVER THERE WITHOUT ACTUALLY TAXING OUR RESIDENTS ONE ADDITIONAL PENNY. DOES THAT OFFSET THAT 4.5 MILLION? THAT'S NOT THAT'S PART OF IT. THAT'S PART OF IT. SO YEAH, I WAS TRYING TO GET YOU. YEAH. I WAS JUST TALKING TO TYLER, I KNOW WHY. A LOT OF OTHERS IN PUBLIC WORKS. SO AGAIN, OVERALL. SO I WANTED TO KIND OF HAVE THAT AS A TABLE SETTER FOR OUR DISCUSSION ON THE STRATEGIES THAT WE'RE CURRENTLY PROPOSING INTERNALLY FOR BALANCING THE BUDGET. SO CERTAINLY ON THE REVENUE SIDE, WE TALKED BEFORE ON THE SALES TAX. JENNIFER HAD SPOKE IN TERMS OF, YOU KNOW, OUR OUR CONTRACTUAL PARTNER IN THEIR PROJECTION OF SALES TAX INCREASE. BUT AGAIN, SO WE'RE WE STARTED OFF ERRING ON THE SIDE OF CAUTION. WE'RE LOOKING AT HAVING POTENTIALLY A 1% INCREASE TO OUR PROJECTION POTENTIALLY MAYBE SLIGHTLY BEYOND THAT TO BUILD IN SOME CONSERVATIVE CUSHION IF IN THE IN THE EVENT THAT WE DON'T ACHIEVE WHAT THEY'RE FORECASTING FOR US TO ACHIEVE BECAUSE WE'VE SEEN VOLATILITY IN THAT HISTORICALLY IN TERMS OF WHAT THEY'VE PROJECTED VERSUS WHAT'S ACTUALLY COME THROUGH THE CITY'S COFFERS, CERTAINLY ON THE COURT. FINE.

AGAIN, BRINGING BRINGING THAT BACK IN WITH OUR INTRODUCTION OF NEW SOFTWARE TO BOLT ON TO THE

[01:30:01]

[01:35:02]

AND AGAIN, AS DOUG HAS ALREADY INDICATED, WE DO PLAN TO PRESENT A BALANCED BUDGET TO THIS BODY IN OUR FULL PRESENTATION NEXT MONTH. SO WITH THAT, I'M GOING TO TURN IT OVER TO OUR ACM. OH I'M SORRY. YES, I APOLOGIZE, I DIDN'T I DIDN'T SEE ANYTHING. LOOK DOWN HERE. OF COURSE I HAVE IT. I'M SORRY. IT'S OKAY. FUND BALANCE, USING IT. THAT DOESN'T EQUATE TO A BALANCED BUDGET. I WOULD ASSUME A BALANCED BUDGET IS REVENUE VERSUS EXPENDITURES. SO AT ONE TIME THIS IS FOR TO FINISH OUT THIS YEAR. OR ARE YOU INCLUDING THE ONE TIME FUND BALANCE AMOUNT TO BE PROJECTED FOR 2026. OKAY. SO THESE THESE ARE THINGS THAT WE FORESEE THAT COULD VERY EASILY BEGIN IN 25.

SO IT'S NOT A 26. EXPENDITURE IS AN EXPENDITURE THAT DEPARTMENTS ARE LOOKING TO BEGIN ON. AND SO AGAIN, COUNCILWOMAN GOODEN, WHEN WE'RE LOOKING AT OUR OVERALL FUND BALANCE, AND WE'VE HAD SOME OF THIS DISCUSSION BEFORE, THE EXCESS OVER AND ABOVE OUR 150 DAYS, WE SAID THAT WE WOULD BEGIN TO APPROACH THIS COUNCIL WITH DIFFERENT THINGS, SO THAT WE MADE SURE THAT WE WERE BEING GOOD STEWARDS OF THE DOLLAR. WE JUST WEREN'T JUST SPENDING IT JUST FOR THE SAKE OF SPENDING IT, BUT THAT THESE WERE PROJECTS THAT WE KNEW. WE'VE TALKED WITH DEPARTMENTS. WE KNOW THAT THESE ARE PROJECTS THAT THAT NEED TO HAPPEN REMAINDER OF THE YEAR. RIGHT. AND SO YES, SO WE WE'RE WE'RE LOOKING FOR THESE PROJECTS TO BEGIN AS WE GET OUR AUTHORIZATION FROM THIS BODY. SO WE PLAN TO BRING A RESOLUTION FORTH HERE IN THE FOURTH QUARTER THAT WOULD ADDRESS THAT. A LOT OF THESE THINGS ARE. AGAIN, WHETHER IT'S EQUIPMENT, WHETHER IT'S A ONE TIME THING FROM A SERVICE PERSPECTIVE. SO THE PUBLIC WORKS SIDE ON THE IT SIDE, JUST TO NAME A FEW. BUT AGAIN, WHEN WE'RE LOOKING AT THIS, WE'RE NOT KEEPING WITH THE CONVERSATION THAT WE PRESENTED TO THIS GROUP BEFORE OF COMING BACK TO YOU WITH A LIST OF THINGS THAT WE PLANNED TO DO AND

[01:40:06]

SO IF WE'RE LOOKING AT MAKING THAT ADJUSTMENT AND MOVING SOME THINGS OVER FROM A GENERAL FUND TO THE UTILITIES, WHAT HAVE WE HISTORICALLY HAD LEFT OVER IN UTILITY FUNDS TO WORK WITH? IT'S ABOUT 4 MILLION AND UNASSIGNED FUND BALANCE IN THE UTILITY FUND. IT'S THE SAME AS IT'S ESSENTIALLY WE WERE LOOKING AT THIS WITH THE BOND COMMITTEE IN DETAIL. IT IT REALLY THE SAME EXACT THING HAS BEEN HAPPENING. REVENUE HAS BEEN OUTPACING EXPENSES. AND SO IT'S JUST BEEN BUILDING ON BALANCE. SO YEAH OKAY. YOU KNOW WHERE I'M GOING WITH THAT. JUST TO BE CLEAR, YOUR ORIGINAL COMMENT. WE'RE TALKING ABOUT YOU FORECASTING ABOVE 150 DAYS. THAT COULD BE 3.5 MILLION. SO YEAH, WE'RE WE'RE FORECASTING AGAIN AFTER THE RESOLUTION THAT WAS INTRODUCED WE'RE FORECASTING ABOUT 3.7 MILLION OKAY. SO THAT THAT'S THE MONEY YOU'RE TALKING ABOUT THEN. CORRECT. WE GET TO GET AN OKAY TO SPEND THAT ON. YOU MENTIONED A COUPLE OF EXAMPLES. ONE WAS MAYBE POLICE. CORRECT. OKAY. SO WITH THAT COUNCIL MEMBER GOODEN, BECAUSE WE'RE REQUESTING APPROPRIATION FROM THE FUND BALANCE, WE WOULD HAVE AN ITEMIZED LIST THAT INCLUDED EVERYTHING, REGARDLESS OF WHETHER IT WAS ABOVE 50 OR NOT, BECAUSE. SO NO. AND THAT LIST IS ALMOST ALL OF IT IS STUFF THAT WE'VE TALKED ABOUT BEFORE. SO I JUST LOOKED IT UP REAL QUICK. IT'S ABOUT 11 MILLION AND UNASSIGNED FUND BALANCE IN THE UTILITY FUND WAS.

OKAY. SO WHEN YOU LOOK AT A ONE TIME FUNDING THING, YOU ALSO LOOK AT POTENTIALLY WHAT THE MAINTENANCE FURTHER ON ADDS INTO OUR BUDGETS AS WELL. YES, YES. NOW WE FACTORED THAT IN. SO WHEN, WHEN WE CREATED THE LIST, WE WANTED TO BE SPECIFIC WITH THINGS THAT TRULY WERE IN THAT CATEGORY OR. GOING BEYOND THAT, THAT IT WOULD BE NEUTRAL TO FUTURE BUDGETS. OKAY. IF YOU DON'T MIND, JUST REAL QUICK JUST TO CIRCLE BACK ON ECONOMIC DEVELOPMENT. CHAIRMAN HARVEY IS HERE. PRESIDENT HARVEY, I WAS CALLING THE WRONG THING, BUT THE DC, EDC. BUT HE AND I HAVE HAD SOME CONVERSATIONS. I KNOW WE HAVE A MEETING COMING UP. RICHARD TALKED ABOUT THE POLICE EXPENSE AS AN EXAMPLE, YOU KNOW, AND MAYBE WE CAN COME UP WITH A METHODOLOGY, A STRATEGY VERY SIMILAR TO WHAT WE'RE LOOKING AT WITH SOME OF THE OTHER FUNDS IN TERMS OF THE COST TO HELP SUPPORT THAT ENTITY BEING MAYBE WORKING UP TO 5% OF THE COST OF THAT ENTITY. SO BUT WE'RE GOING TO WE'RE EARLY IN THOSE CONVERSATIONS WE WANT TO MEET NOW THAT THEY HAVE A FULL BOARD.

I THINK THAT WAS ONE OF THE THINGS THEY WERE WAITING FOR. SO YEAH, AND ALSO TO. ONE OF THE THINGS THAT YOU JUST MENTIONED, WHATEVER ARRANGEMENTS ARE MADE BETWEEN THE CITY AND THE EDC ARE, ARE GOING TO BE FORMALLY DRAWN UP AND PERUSED ALL THE DUE DILIGENCE. AND, AND THEN WE'LL LOOK TO ENACT IT ON OUR SIDE. ANY OTHER QUESTIONS? ALL RIGHT, ASHLEY, FOR THIS NEXT PORTION OF OUR PRESENTATION, I'M GOING TO TURN IT OVER TO RICHARD ABERNATHY. OKAY. GREAT. OKAY. SO YOU SHOULD CAN WE DO YOU GUYS WANT TO GRAB SOMETHING TO EAT. THIS IS OUR LAST PORTION OF THE PRESENTATION I THINK. RIGHT. LET'S PASS THE COOKIES AROUND AFTER STREETS. THIS IS THIS CONCLUDES THE PRESENTATION. ONCE HE'S DONE I BELIEVE SO, YES. OH WAIT THERE'S YEAH THERE IS A THERE'S A, THERE'S A JUST A COUPLE OF SLIDES. JUST A OVERVIEW OF THE UTILITY FUND. SO BUT YOU KNOW THIS IS WE'RE THROUGH THE BULK OF THE PRESENTATION. YEAH. SORRY. YOU

[01:45:03]

OKAY. NO, I THINK I HAVE A COLD. I'M OKAY. THANK YOU. SIR. YEAH. ME? YOU'RE GOING TO BE HERE FOR THE KIDS. JEREMY. YEAH. MONICA GOT HER HOT. I WASTED NO TIME. JUST GET. MAKE SURE WE GOT IT RIGHT. SO CONGRATULATIONS TO YOU. THANK YOU FOR YOUR FINGERS CROSSED. OKAY. MAKE SURE THEY KNOW THAT THIS ISN'T YET IN THE PROPOSED. IT WOULD TAKE IT WOULD TAKE SOME TIME TO DEVELOP. THIS IS MORE LONG TERM. YEAH. THIS IS A TECHNOLOGY SOLUTION IDEA. SO YEAH THIS IS LIKE THIS IS LIKE THEY GET DOWN THE ROAD DOWN THE ROAD. COMMUNICATION SOLUTION IDEA. JEREMY I HEAR YOUR KIDS OUT THERE. THANK YOU I DID YEAH. NICE IDEA. YEAH. ALL RIGHT, A LITTLE BIT OF I HEARD THAT CHICKEN IS VERY MUCH. OKAY. THANK GOODNESS YOU GOT THE HOTEL. YOU WANT TO GO? THERE? SHE SAID, RICHARD, YOU'VE GOT THE WHOLE COUNCIL GOING. OKAY. YEAH, I THINK WE'LL START. NOW.

GOOD EVENING. SO KIND OF REALLY TALKING ABOUT STRATEGIES AND LOOKING FOR WAYS TO BRING IN NEW REVENUE STREAMS AND ADDRESS LONG TERM COSTS. AS WE TALKED ABOUT, THIS IS JUST ONE CONCEPTUAL IDEA WE WANTED TO PRESENT TO YOU ALL. GET YOUR FEEDBACK AND SEE IF IT'S SOMETHING KIND OF MORE LONG TERM, MAYBE TO LOOK INTO OR NOT. SO I'LL GO REALLY QUICKLY THROUGH IT. BUT IT'S A IT IS A STREET MAINTENANCE FEE. IT IS A CONCEPT. THE CONCEPT BEHIND THE FEE IS REALLY TO ASSIST WITH MAINTAINING YOUR EXISTING ROADWAYS. A STREET MAINTENANCE FEE IS ASSESSED AND IT ONLY FUNDS MAINTENANCE ONLY. YOU CAN'T USE IT FOR CAPITAL IMPROVEMENTS SO THAT IT WOULDN'T INCLUDE STREET RECONSTRUCTIONS OR STREET RESURFACING. JUST YOUR YOUR ANNUAL MAINTENANCE NEEDS THAT WE DO NOW. THE FEE IS ASSESSED ON A UTILITY BILL. IT'S A SEPARATE FEE THAT RESIDENTS WOULD PAY. AND AGAIN, THE DESIGN BEHIND IT IS TO REDUCE YOUR GENERAL FUND BURDEN AND CREATE A SEPARATE, SELF-SUSTAINING FUND THAT FUNDS THOSE STREET MAINTENANCE EXPENDITURES GOING FORWARD IN THAT PROGRAM, JUST TO GET THROUGH THE KEY COMPONENTS. AGAIN, THE FEE IS REALLY A COST RECOVERY FEE. SO IT'S BASED UPON WHATEVER YOUR COSTS ARE TO MAINTAIN YOUR STREET SO YOU CAN BASE IT OFF JUST MAINTAINING YOUR STREETS AS THEY ARE NOW. OR IF YOU WANT TO INCREASE YOUR MAINTENANCE AND RAISE YOUR PCI, THE FEE CAN BE BASED ON RECOVERING THAT ADDITIONAL COST, OR YOU CAN USE IT TO ADDRESS THE GAP. HOWEVER, IT'S VERY MUCH LIKE AN IMPACT FEE. IT DOES REQUIRE A CALCULATION. IT'S A ROUGH PROPORTIONALITY TO MAKE SURE THERE'S AN EQUITABLE CHARGE ACROSS THE BOARD, YOU KNOW, DEPENDING ON YOUR PROPERTY. AND SO THE CALCULATION IS BASED ON THE NUMBER OF VEHICLE TRIPS TO THE PROPERTY, AS WELL AS LAND USE AND SQUARE FOOTAGE. SO OBVIOUSLY COMMERCIAL PROPERTIES HAVE MORE VEHICLE TRIPS AND LARGER FOOTPRINTS. SO THEORETICALLY THOSE THAT FEE WOULD BE A LITTLE HIGHER FOR THEM. AND IT IS REALLY RECOMMENDED IF YOU'RE GOING TO DO THIS. AND MOST CITIES DO IT, THEY DO HIRE A THIRD PARTY PROFESSIONAL ENGINEERING FIRM TO DO THAT CALCULATION FOR YOU. YOU CAN DO IT AS EITHER A SINGLE FLAT FEE ACROSS THE BOARD FOR BOTH RESIDENTIAL OR COMMERCIAL, OR YOU CAN DO A MULTI TIERED RATE WHERE YOU KNOW THERE'S A RATE FOR RESIDENTS AND THEN THERE'S A TIERED RATE FOR COMMERCIAL AND THAT'S USUALLY WHAT'S ADOPTED. IT'S A LITTLE MORE EQUITABLE BECAUSE AGAIN AS I MENTIONED EARLIER, COMMERCIAL PROPERTIES HAVE A MORE IMPACT ON YOUR STREET MAINTENANCE SYSTEM, YOUR STREET SYSTEM IN GENERAL. AND THERE ARE EXEMPTIONS YOU CAN APPLY TO IT. YOU CAN MAKE

[01:50:01]

MY PREVIOUS CITY I WORKED AT CITY OF BURLESON WAS EXPLORING THIS IDEA AS WELL. AND FOR PURPOSES OF THIS SLIDE, AS I MENTIONED, WHEN WE LOOKED AT THE COMMERCIAL RATE CHARGE FEES FOR THESE CITIES, THEY REALLY RANGED IN A PRETTY WIDE RANGE FROM $25 UP TO 400, DEPENDING ON THE TYPE OF PROPERTY, LIKE A LARGE INDUSTRIAL WAREHOUSE, FOR EXAMPLE. BUT JUST FOR PURPOSES OF THIS, I'M REALLY JUST KIND OF SHOWING THE FEE FOR WHAT A RESIDENT PAYS IN THESE CITIES.

AND SO IT'S AS LOW AS $2 A MONTH IN WACO, ALL THE WAY UP TO ALMOST $20 IN AUSTIN. SO IT'S JUST KIND OF ACROSS THE BOARD. AND AGAIN, THOSE FEES ARE BASED OFF WHATEVER THEY THEY BELIEVE THEY NEEDED TO COLLECT TO MAINTAIN THEIR STREET SYSTEM AND THEIR STREET PROGRAM. BUT. SO, SO IN AUSTIN, RESIDENTS PAID $20 A MONTH. AND I KNOW THAT'S AUSTIN. YES, BUT THEY PAID $20 A MONTH IN STREET MAINTENANCE BASED ON THE INFORMATION WE RECEIVE. YES, IT'S PRETTY HIGH.

AND AGAIN, THEY THEY OBVIOUSLY HAVE A MUCH LARGER STREET MAINTENANCE NEEDS THAN PROBABLY A WACO OR A SULFUR SPRINGS. BUT YES, IT'S PRETTY HIGH FOR THEM. I MEAN, IT'S, IT'S ON THE HIGHER END. BUT THIS IS THE, THE GAMUT OF ALL THE CITIES IN TEXAS THAT ARE CHARGING RIGHT NOW. AND IT'S INCLUDED IN THEIR UTILITY BILL. OR IS THIS A SEPARATE. IT IS. IT'S PART OF THE UTILITY BILL, BUT IT DOES GO TO A SEPARATE FUND. AND THAT FUND IS USED TO FUND THE MAINTENANCE PROGRAM ON AN ANNUAL BASIS. BUT IT IS THROUGH A UTILITY BILL. SO RIGHT NOW, IF I REMEMBER CORRECTLY, AND I COULD BE WRONG, IT'S LIKE 1.7 FOR UTILITY MAINTENANCE IDENTIFIED IN OUR GENERAL FUND IS THAT WE HAVE A UTILITY MAINTENANCE FOR STREET MAINTENANCE. YEAH, ABOUT 1.7 1.7 MILLION. SO THIS WOULD OFFSET THAT. SO THAT WAY THAT COULD BE REALLOCATED SOMEWHERE ELSE. AND WE HAVE THIS TWO. OR WILL IT BE IN ADDITION TO THAT IT WOULD REALLY OFFSET THE GENERAL FUND DOLLARS WE'RE SPENDING RIGHT NOW. SO IN A SENSE WE WOULD TAKE THAT STREET MAINTENANCE DOLLARS.

IT WOULD NO LONGER BE IN THE GENERAL FUND. SO IT WOULD REDUCE YOUR GENERAL FUND, BUT IT WOULD GO INTO THIS FUND AND BE FUNDED BY THIS RATE, IF THAT. THE OTHER THING I WOULD JUST REAL QUICK ADD HERE AND RICHARD'S KIND OF SHARING. AND AGAIN, THIS IS JUST AN IDEA. BUT KEEP IN MIND THAT ME NOT LAST MEETING THE MEETING BEFORE I DID THE PRESENTATION AND SHE TALKED ABOUT THE FUNDING GAP THAT WE HAVE WITH THE STREETS AND HOW WE'RE GOING TO CONTINUE TO GET BEHIND IF WE DON'T START TO FIGURE OUT ANOTHER WAY TO HELP FUND SOME STREET IMPROVEMENTS. SO THAT'S WHAT I'M SAYING. THIS WILL BE AN ADDITION BECAUSE SHE SHOWED IT'S A HUGE GAP. THERE'S A HUGE GAP.

SO WILL THIS BE AN ADDITION TO THE 1.7 THAT WE ALREADY HAVE ALLOCATED? WE WOULD HAVE TO KEEP ALLOCATING MORE MONEY TO HELP TRY TO CLOSE THE GAP. BUT THIS I DOUBT THAT THIS IS GOING TO CLOSE THE GAP ON ITS OWN, RIGHT. IT'S GOING TO HAVE TO BE A COMBINATION OF THINGS. OKAY.

RIGHT NOW WE DID OUR BEST TO DO A GENERAL ESTIMATE. THIS IS AGAIN, A FINAL RATE CALCULATION WOULD GIVE US THE FINAL DETERMINATION OF WHAT A RESIDENT MAY PAY. THIS ASSUMES A FLAT FEE ACROSS THE BOARD AND ALSO BASED ON OUR RESIDENTIAL AND COMMERCIAL WATER ACCOUNTS. SO IF WE WERE TO MAINTAIN OUR CURRENT PCI CONDITION, YOU CAN SEE THE RATE WHAT OUR ANNUAL COST WOULD BE. THIS IS GENERALLY WHAT WHAT A RESIDENT MAY PAY $8 COMMERCIAL 70. AND THEN AGAIN, IF SCENARIO TWO HERE IS IMPROVING YOUR PCI, YOU KNOW, WHICH WE'VE TALKED ABOUT TO THAT PREVIOUS PRESENTATION THAT I GAVE YOU SEE THE RATES WOULD GO HIGHER. I WILL SAY IF WE DID DO THIS, I WOULD SUSPECT IT DID. A FULL BLOWN CALCULATION USED A MULTI-TIERED RATE SYSTEM. I THINK YOU WOULD SEE PROBABLY A LOWER RESIDENTIAL RATE BUT A HIGHER COMMERCIAL RATE. I KNOW, FOR EXAMPLE, WITH CITY OF BURLESON, WHEN THEY DID THEIR SCENARIO, RESIDENTS WAS GOING TO BE ABOUT $33. BUT YEAH, YOUR COMMERCIAL WAS WAS PRETTY HIGH. IT WAS GETTING INTO THE HUNDREDS DEPENDING ON WHAT TYPE OF FACILITY OR, YOU KNOW, KIND OF PROPERTY YOU WERE. BUT THAT'S JUST THIS IS JUST MORE OF A HIGH LEVEL ESTIMATE. JUST TO GIVE YOU ALL JUST KIND OF A GENERAL IDEA OF YOU CAN SEE KIND OF THE ANNUAL RANGE IT WOULD GENERATE, LIKE I SAID, THAT THAT SCENARIO ONE ABOUT 1.25 MILLION FOR FROM THE RESIDENTIAL FEE ITSELF SPECIFICALLY, I THINK OVERALL JUST THE. COMMERCIAL FEES CALCULATED BASED ON SQUARE FOOTAGE OR LOT SIZE. IT'S BASED OFF VEHICLE TRIPS AND LAND USE AND SQUARE FOOTAGE. IT'S A COMBINATION. BUT REALLY VEHICLE TRIPS IS THE DRIVER. THE MORE THE MORE VEHICLE TRIPS YOU HAVE TO YOUR PROPERTY, THE MORE OF AN

[01:55:06]

AND SO USUALLY CONSULTANT ENGINEERS WILL USE THAT INFORMATION BECAUSE THAT'S INDUSTRY STANDARD AND EASILY PROVEN TO FORM THE BASIS OF THAT. YEAH, I MAY ADD HERE TOO, IS THAT THE HIGH THERE IS A HIGHWAY DESIGN STANDARDS THAT ENGINEERS USE THAT DOES HAVE AN ESTIMATED NUMBER OF TRIPS PER BUSINESS TYPE OR PER USE REALLY. SO THAT IS USUALLY IS CALCULATED TO IT'S CONSIDERED AS WITHIN SPECIFIC MULTIPLIERS THAT ARE THERE IN THE STANDARDS TO REFER TO, TO CREATE TRIP NUMBERS FOR DIFFERENT TYPE OF USES. IF IT'S RESIDENTIAL VERSUS COMMERCIAL, AND THAT'S HOW IT'S BASICALLY REFERRED TO. SO WHEN IT SAYS PER TRIP, SOME CITIES GO PER TRIP AND HAVE AN ESTIMATE CALCULATED BASED UPON THAT, OR SOME CITIES WOULD SAY IT'S LIKE PER SIZE OF THAT PROPERTY AND THEN HAVE A DIFFERENT MULTIPLIER. SO IT DEPENDS WHAT THE CITY WORKS WITH THE ENGINEER ON TO DECIDE WHAT MAKES MORE SENSE FOR THAT CITY. THE NUMBER WILL BE. BUT HERE THE ESTIMATES WERE JUST BUILT UPON A FLAT RATE REALLY AS AN AVERAGE. RIGHT? OKAY. THANK YOU. ALTHOUGH DISTRIBUTION CENTER. WHAT ABOUT THE SHARED SHARED COMMERCIAL SPACES. SO WE HAVE ONE LET'S SAY ON WHEATLAND WHERE YOU HAVE O'REILLY, YOU HAVE THE COFFEE SHOP, YOU HAVE BLACK FRIDAY, YOU HAVE ALL OF THEM. HOW DO YOU BREAK DOWN. WHO'S HAVING. SO IS THAT ALSO IN THE CALCULATION? THAT'S A REALLY GOOD QUESTION. YES. WHEN WE IF WE WERE TO GO THIS DIRECTION, WE WOULD HAVE TO KNOW THOSE SPECIFIC. WE'D HAVE TO PROVIDE THAT SPECIFIC DATA. YOU KNOW, SOMETIMES THE O'REILLY MAY HAVE ONE METER. AND SO THEN IT WOULD JUST BE THAT PROPERTY AS A WHOLE. AND YOU KNOW, THEY WOULD IT WOULD BE DIVVIED AMONGST THEIR TENANTS. BUT IF THEY HAVE INDIVIDUAL METERS ON THOSE INDIVIDUAL SUITES, THEN THAT WOULD HAVE TO BE CONSIDERED INTO THE CALCULATION. SO IT REALLY JUST MAKING SURE WE HAVE THAT DATA UP FRONT TO GIVE THE ENGINEERS. SO WE WOULD HAVE TO DO OUR HOMEWORK IN ADVANCE BECAUSE THAT I'VE SEEN THAT HAPPEN IN THE PAST WHEN IT COMES TO LIKE STORMWATER FEES, FOR EXAMPLE, MAKING SURE THAT YOU'VE IDENTIFIED THOSE PROPERTIES THAT HAVE THOSE OR O'REILLY'S AS AN INDIVIDUAL METER, IT NEEDS TO BE CALCULATED AS SUCH. SO INDUSTRIAL FACILITIES MAY HAVE HEAVIER WEIGHTED TRUCKS AND FREIGHT COMING IN. IS THAT SOMETHING THAT THEY CALCULATE VERSUS JUST A REGULAR OTHER COMMERCIAL? I THINK IT'S JUST BASED SOLELY ON THE TRIPS. SO IT'S JUST THE TRIPS. IT'S NOT ABOUT THE WEIGHT OF THE VEHICLE THAT'S CAUSING THE IMPACT ON THE STREET. CORRECT. THAT'S WHAT I'VE SEEN. BUT YEAH, NUMBER OF AXLES REALLY ALSO GETS, YOU KNOW, CONSIDERED. SO IT DEPENDS LIKE TRUCKS ARE DIFFERENT FROM LIKE REGULAR VEHICLES. SO IT'S YEAH THERE IS A CONTRIBUTION TO IF THERE IS A TRUCK THAT VALUE IS DIFFERENT. AND THAT MULTIPLIER IS DIFFERENT BECAUSE TRUCKS WEIGHT AND IMPACT IS DIFFERENT FROM NORMAL, YOU KNOW, CARS BECAUSE I WANT TO PAY THE SAME. WELL, THAT'S WHY IT WOULD HAVE TO REQUIRE IF YOU WANT TO EXPLORE THIS FURTHER. RIGHT. A CONSULTANT ACTUALLY DO THE ANALYSIS THAT THAT'S WHAT THEY DO. RIGHT. BECAUSE YOU REALLY GET INTO ALL THE DETAILS. TELL THEM THESE QUESTIONS. YES. YES, ABSOLUTELY, ABSOLUTELY. AND JUST IN CONCLUSION, SO THE BENEFITS OF A STREET MAINTENANCE FEE IS IT DOES PROVIDE A MORE STABLE AND PREDICTABLE REVENUE STREAM FOR STREET MAINTENANCE AND UPKEEP. IT DOES, AGAIN REDUCE RELIANCE ON THE GENERAL FUND DOLLARS AS WELL AS ANY KIND OF BOND ISSUES. IT GOES. MOST MOST IMPORTANTLY, IT DOES ENSURE A TIMELY MAINTENANCE SO THAT WE TAKE CARE OF THOSE REPAIRS NOW AND AVOID HAVING TO DO COSTLY RECONSTRUCTIONS DOWN THE ROAD. NOW THERE ARE CHALLENGES AND CONS WITH THIS. THE FIRST AND MOST IMPORTANT, IT MAY BE VIEWED AS AN ADDITIONAL TAX BY THE CITIZENS. THAT'S VERY, VERY REAL. AND ALSO ADMINISTRATIVE COMPLEXITY IS, AS WE MENTIONED EARLIER, IT WILL REQUIRE TIME AND RESOURCES TO DO THE CALCULATIONS, STRUCTURE THE FEE AND IMPLEMENT IT. BUT THERE'S

[02:00:04]

AND IT'S JUST SOMETHING TO THINK ABOUT WHEN THINKING OF TERMS OF BUSINESSES AND ECONOMIC DEVELOPMENT. BUT THAT DOES CONCLUDE THE PRESENTATION. I'M AVAILABLE FOR. ANY QUESTIONS.

AND THIS ISN'T REALLY A QUESTION, IT'S JUST A COMMENT. I'M SURE WE'RE ALL THINKING THIS BECAUSE I KNOW THAT THAT LAST SLIDE SAID COULD BE PERCEIVED AS ADDITIONAL TAX, BUT IT WILL BE AN ADDITIONAL EXPENSE THAT WOULDN'T BE, YOU KNOW, PERCEPTION. AND I BELIEVE I KNOW YOU GOT A LOT MORE INFORMATION TO SHARE WITH US ABOUT THIS. IT'S KIND OF LUMINARY, BUT YES, YOU KNOW, COUNCIL, YOU KNOW, AS WE'RE CONSIDERING THIS ALSO AT THE SAME TIME BE CONSIDERING HOW TO COMMUNICATE TO THE PUBLIC WHY THIS IS ON THERE INSTEAD OF THEM SAYING ON THEIR WATER BILL TWO MONTHS LATER, ALL OF A SUDDEN, THIS ADDITION OR WHATEVER, $5 INCREASE, I IMAGINE THAT THE SIMILARITY BETWEEN US AND TOWN, LIKE BURLESON, THE CITIZENS WOULD HAVE THE SAME CONCERNS RIGHT UP FRONT ABOUT THAT ADDITIONAL AMOUNT THEY HAVE TO PAY EACH EACH MONTH ON THEIR WATER BILL. CORRECT. IT IS DEFINITELY SOMETHING TO FIRST AND FOREMOST, AND IT WOULD REQUIRE OUTREACH. IF IT WAS SOMETHING TO EXPLORE, YOU'D HAVE TO HAVE THAT OUTREACH, EXPLAIN THE PROCESS AND GET THAT BUY IN FOR SURE. SO IT IS IT'S BECAUSE IT IS ANOTHER FEE. AND I GUESS, I MEAN, WHAT I'M GETTING AT IS EDUCATING ON HOW THIS IS BENEFICIAL, HOW THIS IS RIGHT.

THIS WILL AS FAR AS OUR STREETS AND OUR MAINTENANCE. IT'S A GOOD START. YEAH. JUST LOOKING AT JUST DIFFERENT IDEAS. YOU KNOW OBVIOUSLY WE WE'RE TRYING TO LOOK FOR OTHER REVENUE STREAMS. THIS IS JUST ONE JUST WE WANTED TO BRING TO YOUR ATTENTION AND JUST SEE IF IT WAS JUST GET SOME FEEDBACK AND QUESTIONS ABOUT IT. AND OKAY. GREAT. WELL MY FEEDBACK IS I LIVE ON ONE OF THE NEWER STREETS HERE IN DUNCANVILLE, AND I DON'T THINK MY FEET SHOULD BE AS HIGH AS EVERYBODY ELSE'S. SO MY AUNT IS A. STREET SHOT. CAN WE FIX THAT? SO. NO QUESTIONS. THANK YOU.

OKAY. THANK YOU. OKAY, SO WE ARE IN THE LAST LAP HERE OF OUR EVENING. I JUST WANTED TO BRIEFLY HIGHLIGHT THE UTILITY FUND. WE'VE ALREADY HAD SOME CONVERSATIONS ABOUT POTENTIAL WAYS TO REALLOCATE SOME FUNDS OFF THE GENERAL FUND. SO IN TALKING ABOUT UTILITY FUND, THIS SHOWS YOU THAT HISTORICAL PERSPECTIVE OF ACTUALS REVENUES VERSUS THE EXPENSES OVER THE LAST FIVE YEARS. SO THERE HAS BEEN A LITTLE LESS REVENUE THAN EXPENSES. BUT THERE'S OTHER THINGS SOMETIMES THAT GET FACTORED INTO UTILITY FUND THAT YOU WOULDN'T NECESSARILY SEE ON THE GENERAL FUND, LIKE DEPRECIATION AND SOME OF THOSE NON, YOU KNOW, CASH RELATED KIND OF EXPENSES. SO WHEN YOU LOOK AT THE INCOME STATEMENT USUALLY YOU KIND OF SEE THAT FLUCTUATION.

BECAUSE THOSE THOSE EXTRA THINGS THAT WE HAVE TO ACCOUNT FOR THAT ARE NOT NECESSARILY CASH THINGS IF THAT MAKES SENSE. BUT SO THE PRELIMINARY BUDGET AT THIS POINT DOES NOT FACTOR IN ANY OF THAT SHIFTING OF COSTS. SO WITH THE UPDATED RATES INTO THE EQUATION AND WHAT WE HAVE PLANNED FOR CIP AND EVEN STARTING TO FUND MORE TOWARDS METER REPLACEMENT FOR THE FUTURE, THERE'S STILL ABOUT A $500,000 REVENUES OVER EXPENSES THAT WE'RE PROJECTING. BUT, YOU KNOW, IF WE'RE ABLE TO SHIFT SOME OF THAT EXPENSE, OF COURSE YOU'D HAVE TO KIND OF RE THINK OF WHAT'S IN THE UTILITY FUND BUDGETED AND JUST KIND OF COME TO THE ASSUMPTIONS HERE. LET ME BACK UP. SO WHAT'S CURRENTLY ASSUMED IN THE UTILITY FUND? OF COURSE, THE SAME THING APPLIES WITH THE COLA AND THE MERIT AND THE 5% INSURANCE. BUT WE KNOW THAT'S GOING TO HAVE TO GO UP. BUT AGAIN, THE FOURTH YEAR OF THE RATE INCREASE, CIP ASSUMES 5.2 MILLION. THAT'S A TRANSFER THAT GOES OUT INTO UTILITY CIP FOR UTILITY RELATED PROJECTS LIKE PIPE BURSTING AND SUCH. WE GOT A BIG PROJECT, OBVIOUSLY COMING UP WITH A CEDAR RIDGE REPLACEMENT, ROAD REPLACEMENT, HAVING TO PUT SOME MORE MONEY TOWARDS THAT PROJECT AND THEN AGAIN, METER REPLACEMENTS. WE'VE ALREADY STARTED BUILDING UP A BALANCE FOR THOSE. WHEN IT DOES COME ONLINE AND WE GET TO THE POINT WHERE WE'RE HAVING TO REPLACE SOME OF THOSE, THAT'S GOING TO BE A PRETTY HEFTY COST. SO WE WANT TO MAKE SURE WE HAVE FUNDING THERE FOR THOSE KIND OF EQUIPMENT REPLACEMENTS. BUT GOING BACK TO THE ADJUSTMENTS THAT WE WERE TALKING ABOUT WITH THE POSSIBILITY OF SHIFTING, CAN YOU JUST PAUSE THERE? JUST I WANT THE COUNCIL TO BE AWARE FOR A QUICK SECOND. OBVIOUSLY, YOU'VE BEEN HEARING THE UPDATES FROM MATT AND THINGS HAVE BEEN GOING REALLY GOOD WITH US WITH

[02:05:03]

WHAT'S THE REALITY OF WHAT THAT IMPACT WILL BE OVER THE NEXT FIVE YEARS? SO FIVE YEARS, WILL THAT DEFICIT BE CUT IN HALF BECAUSE WE'VE SEEN IMPROVEMENT. THAT'S GOING TO TAKE SOMEBODY TO TELL US THAT AND PROJECT THAT OUT. BECAUSE I WOULDN'T BE ABLE TO PROJECT THAT MYSELF. SO THAT'S PART OF THAT STRATEGIC DISCUSSION. WE'LL HAVE TO SEE WHAT WHAT THE FUTURE HOLDS WITH HOW WE'RE GOING FORWARD WITH ECONOMIC DEVELOPMENT. THE COMPREHENSIVE PLAN, I THINK

[02:10:04]

THAT'S REALLY WHAT IT'S GOING TO TAKE. SO YES, IT'S THE INCREASE IN THE TAXABLE VALUE, NOT A PEOPLE'S NECESSARILY HOMES. BUT LIKE MARLON COINED THE TERM I THINK AT THE LAST MEETING, WE'RE NOT BUILT OUT. WE NEED TO BUILD UP TYPE THING. RIGHT. AS WE TALK ABOUT THE ZONING AND WE BRING SOME OF THE TOWNHOMES ON BOARD THAT WE'VE TALKED ABOUT OR THE CONDOS SO THAT THAT INCREASES TAXABLE VALUE. BUT THAT'S JUST ONE LEVER. RIGHT. THEN WE'VE GOT TO TALK ABOUT WHAT WE TALKED ABOUT HERE TONIGHT. THE GENERAL FUND REDUCING EXPENSES IN THE GENERAL FUND. WHAT CAN WE LOOK AT IN OTHER FUNDS. UTILITY FUND AS AN EXAMPLE. WHAT ARE OTHER WAYS THAT WE CAN LOOK. IT'S GOT TO BE IT HAS TO BE COLLECTED. THERE'S NO MAGIC. ONE THING THAT'S GOING TO FIX THIS. YOU'RE WORKING AGAINST US TOO. AND THIS ISN'T TO BE A DOWNER ABOUT THIS, BECAUSE I THINK WE'VE GOT TO DO WHAT WE'VE GOT TO DO TO GET THERE. BUT WORKING AGAINST US IS THAT WHILE WE'RE WORKING OVER THE NEXT FIVE, TEN YEARS TO TRY TO DEVELOP MORE WAYS OF GETTING REVENUE IN THE CITY, THOSE PRICES THAT HAVE CAUSED THIS PROBLEM TO HAPPEN, AND A LOT OF THE AREAS ARE CONTINUING TO GO UP DRAMATICALLY. AND I DON'T I DON'T THINK I DON'T THINK THAT'S ARTIFICIAL. AND IT'S GOING TO STOP. I THINK THAT'S GOING TO BE A CONTINUING TREND. THAT'S WE'RE COMPETING AGAINST THAT AS WE'RE TRYING TO CATCH UP. THOSE THINGS ARE RIGHT ON OUR TAIL, SO IT'S GOING TO BE DIFFICULT. IT IS.

AND THEN ANOTHER FACTOR THAT PLAYS INTO THAT IS DUNCANVILLE. MEDIAN INCOME IS ABOUT 40 45,000. SO TO PUT AN ADDITIONAL TAX BURDEN ON THAT TYPE OF SALARY I DON'T THINK THAT'S REASONABLE. SO WHATEVER WE NEED TO DO WITH THAT IT'S IN THE 50S OKAY. LET'S JUST SAY 50. IT'S STILL IT'S STILL I COULDN'T SURVIVE. SO YOU SPEND. IT'S DEFINITELY TO YOUR POINT, IT'S NOT FAIR TO CONTINUOUSLY BURDEN OUR CURRENT POPULATION. POPULATION IS NOT GROWING. IT'S GOING TO BE THE SAME 39,000 THAT BEARS THE BURDEN OF HIGHER TAXES, BECAUSE OUR EXPENSES GROW, AND WE'RE TRYING TO MEET THE NEEDS CREATED IN HOW WE GOT TO GROW THAT BASE, TO SPREAD THAT OUT. IT IS IMPORTANT HOW ECONOMIC DEVELOPMENT IS TRYING TO MOVE THAT SEGMENT. IF WE'RE 8020 BUSINESS AND TRYING TO JUST MOVE IT 5% AND SHIFT MAKES IT EASIER FOR WELL, I THINK I'VE MENTIONED IT JUST KIND OF IN PASSING, BUT ANOTHER LEVER, RIGHT. WE KIND OF ALLUDED TO IT A CRIME DISTRICT OR A PID SPECIFICALLY. YOU KNOW, OUR POLICE DEPARTMENT HAS A HEAVY BURDEN ON RESPONDING TO OUR COMMERCIAL BUSINESSES, IN PARTICULAR ALONG I-20 AND 67.

THEY'VE DONE A LOT OF WORK. THEY'VE SPENT A LOT OF TIME. THEY CAN ACTUALLY DOCUMENT A DECREASE IN MOTOR VEHICLE BREAK INS. BUT IF IT WASN'T FOR THAT, THAT WOULD BE A HUGE INCREASE, TO THE POINT WHERE I'M CONCERNED THAT WE COULD POTENTIALLY START LOSING BUSINESSES BECAUSE THEY DON'T WANT TO BE IN DUNCANVILLE BECAUSE OF HAVING TO DEAL WITH THAT. RIGHT. SO IS THERE ANOTHER WAY THAT INSTEAD OF OUR RESIDENT PROPERTY OWNERS, HOMEOWNERS HAVING TO PAY 100% OF THE BURDEN OF OUR POLICE DEPARTMENT, IS THERE ANOTHER WAY THAT THE COMMERCIAL BUSINESSES, THOSE ARE ALL THE CONVERSATIONS? THAT'S SOME OF THE STRATEGY THAT WE NEED TO TALK ABOUT. LIKE YOU SAID, THERE'S NOT A ONE SIZE FITS ALL SOLUTION. IT'S STRATEGIC. AND WE HAVE TO BE VERY THOUGHTFUL OF WHAT, YOU KNOW, WHAT WE DO. SO IT TAKES ALL OF US. WELL, I WILL SAY ALL THAT SAID THAT OUR OUTLOOK, I FEEL MUCH MORE CONFIDENT THAN I DID 2 OR 3 YEARS AGO, JUST WITH SOME OF THE IDEAS HAVE BEEN PROPOSED. AND, YOU KNOW, AND THIS, LIKE YOU SAID, COMING FROM DIFFERENT AREAS, DIFFERENT, YOU KNOW, ALL THE DIFFERENT LEVELS. I FEEL BETTER ABOUT WHERE WE ARE NOW AND SEE THE CHALLENGES. BUT AND I, I JUST WANT TO EXPRESS MY APPRECIATION FOR THE WORK THAT YOU GUYS ARE DOING TO BRING US A BALANCED BUDGET, TO KEEP THAT OUTLOOK POSITIVE. THANK YOU. I APPRECIATE THAT THAT HONESTY ABOUT THE REALITY OF HOW WE'RE GOING TO BE IN THE NEXT FEW YEARS IN TERMS OF HAVING THAT DEFICIT, AND THAT'S GOING TO REALLY FORCE US ALL TO WORK HARD TO TRY TO COME UP WITH A STRATEGY AND UNDERSTAND THE DYNAMICS OF WHAT WE'RE WORKING AGAINST, TO TRY TO GET TO WHERE WE NEED TO BE AND HOW FAR OUT IS THAT BEFORE WE GET THERE. YEAH, AND I THINK THE BOTTOM LINE IS KNOWLEDGE IS POWER. AND JUST LIKE YOU SAID, LIKE YOU FEEL BETTER TODAY THAN YOU DID THREE YEARS AGO, I THINK A LOT OF IT WAS LACK OF EDUCATION. I MEAN, YOU KNOW, BEING NEWER TO THE COUNCIL AND THEN SOME OF THE THINGS THAT WEREN'T AS AS

[02:15:03]

[02:20:07]

IT'S IF I JUST COULD REAL QUICK JUST, YOU KNOW WHAT YOU SAID. AND ACTUALLY, COUNCIL MEMBER COMBS, WHAT YOU SAID, I HAVE TO TELL YOU AND OUR TEAM, I PUT OUR TEAM UP AGAINST ANYBODY, MAN. WE HAVE THE CHAMPIONS. WE REALLY DO. AND I'M NOT JUST SAYING IT, BUT I WAS REALLY STARTING TO FEEL AN INCREDIBLE WEIGHT, I'LL BE HONEST WITH YOU, THAT I'M LIKE, HOW DO WE FIX THIS? I FELT IT JUST I WAS REALLY SERIOUSLY, I'M NOT EVEN JOKING. I WAS REALLY STARTING TO HAVE TROUBLE SLEEPING AND EVERYTHING ELSE. AND WHEN WE DISCOVERED THIS SITUATION WITH THE UTILITY FUND, IT WAS LIKE A BABY GRAND PIANO WAS LIFTED OFF MY SHOULDERS BECAUSE I'M LIKE, OKAY, THERE'S A PATH FORWARD WHERE WE CAN START TO MAKE SOME PROGRESS AND START TO ADDRESS SOME STUFF. SO I'M SORRY, MR. COUNCIL. YEAH, JUST I MEAN, I COULDN'T ADD ANYTHING TO WHAT COUNCILWOMAN GOODEN JUST SAID. WHAT THE STAFF HAS DONE, AND I SPEAK FOR MYSELF, PROBABLY, I WOULD IMAGINE, FOR THE REST OF THE COUNCIL THAT WE FULLY SUPPORT EVERYTHING. THAT'S THE IDEAS THAT ARE BEING BROUGHT TO US. AND I MEAN, THAT'S I ALWAYS TELL PEOPLE, YOU KNOW, I'M NOT YOU KNOW, FINANCE IS NOT MY BACKGROUND. I'M NOT. BUT WE HAVE PEOPLE THAT THAT WHO ARE EXPERTS IN THOSE THINGS. AND WE DEFER TO THEIR JUDGMENT WHEN, WHEN WE'RE MAKING DECISIONS. AND SO, YOU KNOW, AGAIN, JUST REALLY APPRECIATE WHAT YOU'RE ALL DOING. I DO I WANT TO SAY ONE THING BECAUSE I GOT, YOU KNOW, WE ARE WE ARE REFERRED TO AS A BEDROOM COMMUNITY. AND I KNOW WE A LOT OF TIMES WE TALK ABOUT THE SENIORS ON FIXED INCOMES AND MAKING SURE THAT THEY'RE TAKEN CARE OF. AND I JUST WANT TO PUT THIS OUT THERE BECAUSE THEY'RE ALSO YOUNG FAMILIES WITH LITTLE, LITTLE CHILDREN. AND, YOU KNOW, WHO ARE ALSO ON FIXED INCOMES. AND, YOU KNOW, SOMETIMES WE HAVE TO JUST BE CONSIDERATE OF THEM WHEN WE'RE TRYING TO HELP THOSE WHO ARE OLDER, WHICH WE SHOULD.

BUT SOMETIMES THAT PUTS MORE BURDENS ON THOSE YOUNGER FAMILIES AS WELL, BECAUSE I THINK THE MEDIAN AGE IN DUNCANVILLE IS SOMEWHERE AROUND 40. YEAH, I'VE GOTTEN PAST THAT.

THAT'S OKAY. BUT, YOU KNOW, JUST TO MAKE SURE THAT WE DO KEEP IN MIND THAT WE ARE WE'RE NOT AN OLDER COMMUNITY ANYMORE LIKE WE USED TO BE. WE ARE YOUNGER. JUST KEEP THAT IN MIND. OKAY? THAT CONCLUDES EVERYTHING. WELL, THANK YOU FOR ALL THE PRESENTERS TODAY. THANK YOU. AND FOR ALL THE SUPPORT STAFF THAT ARE HERE. WITH THAT, WE'RE FINISHED WITH OUR ITEM THREE AND INTO ADJOURNMENT AT.

* This transcript was compiled from uncorrected Closed Captioning.