[CALL TO ORDER]
[00:00:02]
TO SEE YOU WITH THE. NO, BUT I DON'T GET IT. IS 4:00 STRAIGHT UP? THANK YOU. COUNCILMAN KOONTZ, I'M SURE HE'LL BE HERE MOMENTARILY. BUT JUST TO BE. OF COURSE. ABSOLUTELY. OUR PLEASURE. WE'RE GOING TO GO AHEAD AND GET STARTED WITH OUR SPECIAL CALLED MEETING BUDGET WORKSHOP. AND TO BEGIN WITH, THANK YOU ALL FOR BEING HERE, EVERYONE. I'M SURE WE'VE GOT A LOT OF VALUABLE INFORMATION. WE'LL BE GOING OVER TONIGHT. SO I'M LOOKING FORWARD TO HEARING
[RECEIVE PUBLIC COMMENTS]
FROM YOU ALL. PUBLIC COMMENTS. WE HAVE TWO, SO WE'LL GET RIGHT INTO THAT FIRST ITEM OF BUSINESS. KELLY MCCHESNEY. YES. SHOULD I COME UP THERE OR JUST SPEAK RIGHT THERE? YOU WANT TO COME UP HERE? THAT'S FINE. EVERYBODY CAN SEE YOU. OKAY. THANK YOU. I JUST KNEW THAT THERE WAS GOING TO BE A PRESENTATION ABOUT HUB, AND I'VE HAD QUITE A FEW JUST TO LET EVERYONE KNOW. I'VE HAD QUITE A FEW ISSUES WITH HUB, AND I JUST WANTED TO MAKE THAT CLEAR. I STILL, THEY STILL HAVE NOT HELPED ME WITH A MISTAKE THEY MADE IN LIKE MONTHS AGO. AND SO EVERYONE, PLEASE CONSIDER THAT ABOUT JUST FOR CLARITY SAKE. AND I WOULDN'T DO THIS BUT HUB YEAH THERE ARE THERE ARE BENEFITS IN SHE'S GOING TO GO AHEAD AND EXPLAIN. WELL WHAT THEY DID WAS THEY ACCIDENTALLY. NO NO NO I'M SAYING COULD YOU COULD YOU DESCRIBE EVERYBODY IN THE ROOM.MOST. NO. BUT FOR THOSE THAT ARE WATCHING. OH, OKAY. SORRY. I BELIEVE THAT THEY ARE THE PEOPLE THAT ADMINISTER OUR BLUE CROSS BLUE SHIELD PPO, ALL OUR INSURANCE. THEY'RE LIKE THE GO BETWEEN. OKAY. ALL RIGHT. THAT'S THAT'S ALL. THAT WAS IT. I JUST THAT'S ALL I HAD TO SAY. THANK YOU, THANK YOU. GOOD TO SEE YOU. OKAY. PATRICIA EBERT. YES. PATRICIA EBERT 1115 SOUTH GREENSTONE. AND SO LAST NIGHT IN THIS VERY MEETING ROOM, THERE WAS A MEETING FOR THE DC EDC WHERE THE THEY ASKED FOR WHERE THE CITY STAFF ASKED FOR $206,000 TO PAY UNPAID INVOICES TO OLSEN CONSULTING. AND THE INVOICES GO BACK FROM APRIL. AND SO THE DC BOARD WITH DC EDC BOARD WAS ASKING QUESTIONS LIKE THE FIRST THING THAT ONE OF THE BOARD MEMBERS ASKED WAS THEY GO THE UNPAID INVOICES GO BACK TO APRIL, AND YOU JUST KEPT SPENDING. AND SO THE BOARD HAS SIX VOLUNTEERS. NONE OF THEM GET PAID. THEY'RE ALL VOLUNTEERS. THERE WERE SEVEN CITY STAFF HERE, FIVE OF THEM SIX FIGURES. AND SO I DID TALK BEFORE THE MEETING TO ICM ABERNATHY. HE WAS THERE. HE KNOWS ALL ABOUT THIS. AND HE SAYS THAT HE'S HOPING AND HE'S HE'S GOT A PLAN THAT THAT'S A ONE OFF. AND THAT GOING FORWARD WE'RE GOING TO BE SOLID FINANCIALLY. BUT I APPLAUD THE BOARD BECAUSE THEY ACTUALLY NEGOTIATED WITH THE CITY STAFF AND ONLY VOTED FOR 75,000 TO HELP PAY FOR THE UNPAID INVOICES. AND WE'LL NEED TO GET A PLAN TO FINISH PAYING OFF THOSE INVOICES. THANK YOU. OKAY, SO THAT CONCLUDES ALL THE CARDS WE HAVE FOR CITIZENS INPUT THIS
[1.A. Council to receive a briefing presentation of the FY 2025-26 Proposed Budget.]
EVENING. SO WE'LL MOVE RIGHT INTO ITEM NUMBER ONE, DISCUSS AGENDA ITEMS. ACTING CITY MANAGER. YOU WANT TO COVER THESE? YES. GOOD AFTERNOON, MAYOR AND COUNCIL. THANK YOU ALL FOR BEING HERE TODAY AS WELL AS THE GENERAL PUBLIC. YES. TODAY WE'RE GOING TO GO THROUGH A REVIEW OF THE PROPOSED BUDGET. AGAIN. WE WILL GET INTO THE REAL DOWN IN DETAIL AT THE AUGUST 12TH. WE'RE REQUIRED TO PRESENT A BUDGET TO YOU BY THE 30TH. SO THIS IS THAT, THAT THAT THAT PREVIEW THERE. YOU ALL HAVE A COPY OF YOUR BOOK. IT'S ALSO GOING TO BE ONLINE. AND THEN ALSO WE'VE BEEN WE'VE BEEN GOING THROUGH A BENEFITS LOOKING AT OUR BENEFITS. AS YOU ALL KNOW, WE HAD A PRETTY SIGNIFICANT INCREASE REQUEST FROM OUR CURRENT VENDOR ACROSS THE FIELD.WE DECIDED TO GO OUT TO BID, AND WE'RE NOW DOWN TO BASICALLY OUR RECOMMENDATION WITH CIGNA AND SHIELD. OUR REPRESENTATIVE FROM REPRESENTATIVE FROM HUB WILL. REPRESENTATIVE FROM HUB. ANDREW WILL BE HERE TO WALK THROUGH THAT PRESENTATION. AND THEN WE ALSO FOLLOWING UP FROM OUR FUND BALANCE STRATEGY THAT WE DID TO GET SOME OF THOSE PROJECTS OFF THE GROUND AND MOVING FROM OUR, OUR, OUR JUNE 26TH COUNCIL WORKSHOP FOR THE BUDGET. RICHARD JACKSON WILL GO THROUGH THERE.
BUT FOR FURTHER ADO, I'M GOING TO TURN IT OVER TO JENNIFER, WHO WILL WALK US THROUGH THE BUDGET AND THE DOCUMENT. SO THANK YOU. WELL, GOOD AFTERNOON EVERYONE. THANK YOU ALL FOR BEING HERE.
THANK YOU FOR BEING A LITTLE EARLY FOR THE 4:00 AGAIN. MISTER ABERNATHY SAID THE PURPOSE OF
[00:05:06]
TONIGHT IS NOT TO GO INTO GREAT DETAIL OF THIS INFORMATION, BUT WE WANTED TO GIVE YOU THE HIGHLIGHTS OF WHAT'S IN THIS PROPOSED BUDGET. LIKE WE SAID, WE HAVE EVERYONE HAS A BOOK FOR YOU, BUT I DO HAVE A SAY, A SURPRISE, KIND OF NEAR THE END OF THIS PRESENTATION THAT I'M VERY PLEASED TO BE ABLE TO TELL YOU ABOUT. BUT BEFORE YOU START LOOKING IN THE BOOKS, I KNOW HOW WE ARE. WE LIKE TO START LOOKING AHEAD. SO LET'S JUST GO RIGHT ON THROUGH IT. SO WALKING THROUGH THE BUDGET CALENDAR JUST TO GO THROUGH THE REMAINDER DATES, OBVIOUSLY TODAY IS THE 29TH GIVING YOU THIS BRIEFING, BUT AUGUST 12TH WILL BE THE BUDGET WORKSHOP THAT WE GO INTO GREATER DETAIL OF ALL OF THIS INFORMATION. I'LL HAVE DEPARTMENT SPEAK ON THEIR BUDGET. THIS IS ALSO THE BUDGET OR THE DATE THAT WE DO WHAT'S CALLED THE RECORD VOTE ON THE TAX RATE. THIS IS WHERE WE HAVE TO VOTE, NOT ON ADOPTING THE TAX RATE, BUT JUST FOR THE PUBLICATIONS AND ALL THE LEGAL NOTICES THAT WE HAVE TO PUT OUT THERE FOR THIS IS THE THAT YOU WILL HAVE TO DO THAT ON THAT SPECIFIC DATE, AND THEN WE'LL HAVE A PUBLIC HEARING ON THE BUDGET AND THE PUBLIC HEARING ON THE TAX RATE AT THOSE REGULAR MEETINGS IN SEPTEMBER. MY QUESTION TO YOU ALL IS SINCE THAT WILL BE MOST LIKELY A PRETTY LENGTHY MEETING, ARE Y'ALL ABLE TO START EARLIER, SAY 4:00 AGAIN OR EVEN EARLIER, WHICH IT'S A TUESDAY, AUGUST 12TH. OKAY, JUST WANT TO PULL YOU ALL BEFORE MOVING FORWARD, OKAY. MR. KOONS IS OKAY.PENNEBAKER, I WILL NEED TO MOVE MY STANDING MEETING THAT I HAVE WITH THE CITY MANAGER. SO IF WE COULD FIND AN ALTERNATIVE DATE AND TIME. YES, WE'LL DO THAT. OKAY. YES, I SHOULD BE FINE WITH THAT. MR. CHAIRMAN, ARE YOU OKAY? SO THE QUESTION IS, WHAT TIME ARE YOU OKAY? WHAT TIME? ARE YOU OKAY? ARE YOU DOING EARLIER? I KNOW WHAT TIME. IT'S 4:00. OKAY. OKAY. GOOD WITH YOU ALSO. AND SOMETHING ELSE JUST FOR YOUR AWARENESS. YOU MIGHT HAVE SEEN THIS IN MR. ABERNATHY'S EMAIL ON FRIDAY. THE R REPORT THAT JUST AS YOUR FOR YOUR AWARENESS ON THAT DATE AS WELL, WE WILL HAVE ANOTHER AGENDA ITEM. ACTION ITEM. AND THAT IS TO CALL THE ELECTION BECAUSE UNFORTUNATELY, THE TIMING OF HAVING TO CALL ELECTION IS ONE DAY AFTER THE REGULAR COUNCIL MEETING AND ONE DAY BEFORE THE NEXT REGULAR COUNCIL MEETING. SO SINCE YOU ARE ALL TOGETHER AND PRESENT, WE'RE GOING TO DO THAT AS WELL ON THE AUGUST 12TH MEETING.
AGAIN, IT'S JUST A LEGAL THING THAT YOU HAVE TO DO IN ORDER TO OFFICIALLY CALL THE BOND ELECTION. GREAT. OH, GREAT. OKAY, SO WHAT IS THE FY 26 BUDGET ABOUT? THIS IS ABOUT CONTINUING THE MOMENTUM. WE SHOULD ALL APPLAUD. YOU KNOW, THE MEMBERS OF THIS COUNCIL STAFF AND EVERYTHING FOR THE TREMENDOUS WORK THAT WE'VE BEEN ABLE TO START, ALL OF US IN FISCAL YEAR 25 OR 25 AS A RUN THROUGH, OF ALL THE THINGS THAT WE'VE BEEN ABLE TO ACCOMPLISH.
SO WE GOT THE MATRIX STUDY DONE. WE GOT A LOT OF INFORMATION FROM THAT. THE REPORT FOR THE OPERATIONS OF THE FIELD HOUSE, WE GOT SOME GREAT INFORMATION FROM THAT. WE HAVE A DRAFT COMPREHENSIVE PLAN 2040. THE BLOCK KICKOFF PARTY WAS A BIG SUCCESS. WE'RE ABLE TO ADOPT A CAPITAL IMPROVEMENT PLAN EARLIER THIS YEAR IN 2040, THE VERY TAIL END OF 24, WE TALKED ABOUT A FACILITY NEEDS ASSESSMENT. WE HAVE THAT INFORMATION. WE WERE ABLE TO DO A MASTER PLAN, A DOG MASTER PLAN. WE EVEN ESTABLISHED A CULTURAL DISTRICT. SO 25 HAS ACTUALLY BEEN A VERY BUSY YEAR.
AND WHY I BRING THAT UP? WE'RE CONTINUING THE MOMENTUM GOING INTO 26 WITH THAT PLANNING.
OKAY. SO IT DOESN'T STOP WITH JUST THE REPORTS. NOW THE WORK BEGINS OF HOW DO WE IMPLEMENT THESE THINGS? HOW DO WE PUT RESOURCES ASIDE IN ORDER TO ACCOMPLISH SOME OF THESE THINGS? SO THE 26 BUDGET AND THE STAFF WORK PLAN IS CONTINUING THAT MOMENTUM OKAY. THE OPPORTUNITIES AHEAD. SO ONE OF THE CHALLENGES HERE AT THE CITY WE CONTINUE TO FACE IS THIS IS NOT NEW TO YOU, IS, YOU KNOW, REMAINING COMPETITIVE IN THE MARKETPLACE. ONE CITY RAISES THEIR THEIR SALARIES, POLICE AND FIRE, FOR EXAMPLE. THEN EVERYONE'S TRYING TO CATCH UP AND THEN THE TARGET KEEPS MOVING. SO IT'S A CONTINUOUS CHALLENGE TRYING TO, YOU KNOW, STAY AHEAD OF THE CURVE THERE. ADDRESSING BUDGET DEFICITS. AS WE MENTIONED AT THE JUNE 26TH MEETING, THAT WHEN WE'RE PLANNING AND LOOKING FORWARD, THAT THERE ARE GOING TO BE BUDGET DEFICITS THAT WE'RE GOING TO HAVE TO CONTINUOUSLY ADDRESS. NOW, WE HAVE ALL DIFFERENT IDEAS AND THINGS THAT WE'LL HAVE TO COME BACK TO YOU ALL AND TO DISCUSS AND TO RESEARCH AND TO FIGURE OUT HOW, WHAT'S THE BEST WAY TO ADDRESS THOSE. BUT JUST KNOW THAT THAT IS SOMETHING THAT WE HAVE TO BE REAL ABOUT REALIZING OTHER REVENUE SOURCES THAT ARE A VARIETY OF OTHER IDEAS THAT
[00:10:03]
THERE ARE OUT THERE THAT WE COULD EXPLORE, THAT WE COULD PUT IT ON A TIMELINE AND SAY, YOU KNOW, WE'RE GOING TO DO THIS, THIS IS WHAT THIS LOOKS LIKE. AND THIS IS, YOU KNOW, REASONABLE THIS IS SOMETHING WE COULD DO. WHAT'S THE IMPACT TO THE CITIZENS? WHAT'S THE IMPACT TO THE CITY ORGANIZATION? SO AGAIN, THESE ARE OPPORTUNITIES FOR US TO LOOK AT AND THEN OVERDUE INFRASTRUCTURE AND MAINTENANCE NEEDS. SO OUR STRATEGIC FOCUS AGAIN STRATEGIZING TO 2040. SO THAT IS THE MAGIC YEAR. SO WHAT IS INCLUDED INTO THIS BUDGET. AND SOME OF OUR FOCUS IS OKAY, WE'RE TRYING TO ADDRESS COMPETITIVE PAY AND BENEFITS. AS YOU KNOW, WE ADJUSTED THE POLICE AND FIRE BACK IN JUNE A 5% ADJUSTMENT AS OF OCTOBER 1ST. WE'RE PROPOSING A 3% COLA ACROSS THE BOARD AS WELL AS A 2% MERIT AS OF APRIL 1ST. AFTER OUR PERFORMANCE EVALS LAST YEAR, WE TALKED ABOUT ADJUSTING THE TMRS RATE THAT WE'RE TRYING TO BUILD UP AND WORK OURSELVES UP BACK TO THE MAXIMUM BENEFIT THAT WAS GOING TO TAKE A COUPLE OF YEARS. AND THE STRATEGY TO DO THAT WAS TO JUST INCREASE THAT RATE STRATEGICALLY EVERY YEAR UNTIL WE'RE ABLE TO HIT THAT MAXIMUM BENEFIT. AND THEN AGAIN, PUBLIC SAFETY. WE'RE TRYING TO MAKE STEPS TOWARDS IMPLEMENTATION OF THAT MATRIX STUDY. AND SO THIS PROPOSED BUDGET INCLUDES ADDING TWO POLICE OFFICERS AND ADDING TWO FIREFIGHTERS IN EFFORTS TO START WORKING TO THAT IMPLEMENTATION. SO ON THE PLANNING SIDE, OBVIOUSLY WE KEEP TALKING ABOUT THE COMPREHENSIVE PLAN, BUT THE COMPREHENSIVE PLAN, AS YOU ALL KNOW, IS SO VITALLY IMPORTANT. EVERYTHING THAT WE DO WITH OUR BUDGETS, IT'S OUR MASTER PLANNING. IT'S ALL THE DECISIONS THAT YOU MAKE AROUND THE TABLE NEED TO TIE INTO THAT GRAND VISION, BECAUSE THAT IS THE VISION OF THE COMMUNITY. SOMETHING ELSE THAT WE'RE GOING TO LOOK AT IN THIS NEXT BUDGET YEAR IS SOMETHING LIKE PRIORITY BASED BUDGETING, LOOKING AT THOSE REVENUE OPTIONS, REALLY LOOKING AT WHAT ARE THE SPECIFIC PROGRAMS, ALL THE SERVICES THAT WE OFFER, WHAT IS THAT COST? AND REALLY, TRULY LOOKING AT THAT PRETTY HARD, YOU KNOW, AND MAKING SURE THAT WHAT WE'RE BUDGETING AND WHAT WE'RE DOING MEETS THAT PRIORITY LEVEL. THERE'S A LOT OF MASTER PLAN UPDATES HAPPENING. AND SO THAT NEEDS TO UPDATE THE CIP PLAN ACCORDINGLY. WE HAVE THE WATER WASTEWATER PLAN KICKING OFF THE DRAINAGE MASTER PLAN KICKING OFF. THERE NEEDS TO BE A PARKS MASTER PLAN KICKING OFF A TRANSPORTATION. THERE'S JUST A LOT OF PLANNING HAPPENING RIGHT NOW. SO BEING ABLE TO IMPLEMENT THOSE. AND THEN LASTLY PERFORMANCE METRICS. SO IN THE CITY MANAGER'S OFFICE WE'RE WORKING ON A REALLY COOL PROJECT THAT'S REALLY GOING TO ADDRESS SHOWING TO THE COMMUNITY HOW WE ARE DOING, HOW ARE WE PERFORMING AND WHAT ARE THOSE METRICS AND THOSE KPIS. AND THEN LASTLY JUST HIGHLIGHTING AGAIN THE PROJECT. YES. YES, MA'AM. GO BACK ONE SLIDE FURTHER EXPLAIN PERFORMANCE METRICS. NOT THAT ONE. OKAY. SURE, SURE. PERFORMANCE METRICS. ARE WE TALKING ABOUT PROJECTS PERFORMANCE AND WHERE THEY STAND? ARE WE ACTUALLY TALKING ABOUT STAFF AND THE CITY SERVICES AND WHERE THEY SAY, YOU KNOW, I DON'T WANT TO SAY TOO MUCH BECAUSE THIS IS SOMETHING THAT'S STILL IN MOTION TO GET OFF THE GROUND. BUT I JUST WANT TO SAY WHY THAT'S IMPORTANT. PERFORMANCE METRICS IS THAT REALLY DOES LEAD TOWARDS DECISION DATA DRIVEN DECISIONS. AND, YOU KNOW, ARE WE BEING EFFICIENT IN THIS AREA. WHAT DO WE NEED TO CHANGE. ALSO JUST YOU KNOW IT'S OUR WORKLOAD. LIKE WHAT THE THINGS THAT WE'RE DOING ARE WE ARE WE LIVING UP TO. ARE WE PERFORMING UP TO WHAT THE COMMUNITY EXPECTS. SO AGAIN, I DON'T WANT TO GO TOO MUCH OR STEAL ANYBODY'S THUNDER, BUT JUST KNOW THAT THAT'S SOMETHING WE'RE GOING TO BE WORKING TOWARDS IN THIS COMING FISCAL YEAR. WELL, JUST TO BUILD UPON THAT, WE ARE LOOKING WE'RE WE'RE ACTUALLY WORKING RIGHT NOW ON ON ROLLING OUT A KPI PROGRAM. YOU KNOW, WE'RE GOING TO UTILIZE CLEARPOINT STRATEGIES TO HELP US TRACK THAT. BUT YEAH, I THINK OVERALL THE GOAL IS TO START LOOKING AT HOW ARE WE PERFORMING AND NOT AND NOT SO MUCH FROM A STANDPOINT OF, OKAY, IF WE'RE DOING BAD, LET'S IT'S MORE OF LIKE, OKAY, IF WE'RE NOT MEETING SOMEWHERE HERE, IT GIVES US THE DATA TO KNOW WHAT WE NEED TO IMPROVE. OR FOR EXAMPLE, LET'S SAY OUR TARGETS TEN DAYS FOR A MODEL AND WE FIND OUT IT'S 13 DAYS. HAVING THAT DATA ALLOWS US TO GO BACK AND REVITALIZE AND LOOK AT WHAT RESOURCES, STAFFING, ETC. TO GET US BACK INTO THAT. SO REALLY IT'S JUST KIND OF BENCHMARKING AND HELPING US CONTINUOUSLY IMPROVE OUR LEVEL OF SERVICE. AND DEPENDING ON WHETHER YOU'RE ABLE TO MEET THE DEADLINE OF THE SERVICE TO BE PROVIDED, YOU CAN USE THAT DATA TO DETERMINE IF YOU NEED ADDITIONAL STAFF, IF YOU NEED ADDITIONAL RESOURCES OR WHATEVER IT IS THAT MAY BE IMPEDING ON YOU TO DELIVER THAT SERVICE OR OR ADJUST PRIORITIES AND MAKING SURE WE'RE, YOU KNOW, WE'RE WE HAVE THE WE'RE FOCUSING ON THAT AREA AS WELL. YES. BUT YES, I JUST WANT TO FURTHER THE DEFINITION. THANK YOU. THANK YOU MISS. I'LL SAY SPECIFICALLY ON PUBLIC WORKS, SOME OF THE KPIS THAT I'M RECOMMENDING ARE GOING TO TOUCH ON BOTH CIP AND OPERATIONAL EFFICIENCY. SO AND IT'LL BE COMMUNICATED TO THE PUBLIC SO THEY CAN BE AWARE AND TRANSPARENCY AND HOW WE'RE DOING AS A STAFF AND HOW WE'RE DOING[00:15:05]
PROJECT WISE AND THE SERVICES THAT ARE BEING PROVIDED. ALL THAT SUPPORT IS A PROJECTS.OFTENTIMES WE HEAR ABOUT PROJECTS GETTING ROLLED OUT IN THE NEW YEAR FROM THE PUBLIC THAT THEY'RE NOT ROLLING OUT THE WAY WE THOUGHT THEY WERE. AND THERE NEVER SEEMS TO BE A PERFORMANCE MEASURE FOR US TO GET A REPORT BACK ON TO TELL US WHAT HAPPENED. RIGHT. AND SO WE KNOW SOMETHING HAPPENED. WE KNOW IT DIDN'T ROLL OUT THE WAY WE WANTED IT TO. SO I'D BE LOOKING FORWARD TO THAT BEING A PART OF THIS. FOR EVEN THE PROGRAMS WE BRING IN. AND I DON'T WANT TO GO TOO SPECIFIC TO IT BECAUSE WE HAVEN'T REALLY ROLLED OUT HOW ALL THAT STUFF. BUT, YOU KNOW, WE JUST IT'S A PART OF WHAT WE'RE LOOKING AT FOR AND OUR FOCUS WHEN IT COMES TO IN THE PLANNING REALM AND THEN PROJECTS JUST AGAIN HIGHLIGHTING THROUGH THESE BIG PROJECTS WE KNOW THAT ARE COMING DOWN THE PIPELINE, AM I WE HAVE A TECH STOCK GRANT THAT SHOULD BE KICKING OFF HERE IN THE NEAR FUTURE, WITH SOME SAFETY IMPROVEMENTS ON WHEATLAND ROAD, AND ALSO A SAFETY AND MOBILITY MASTER PLAN HAS TO DO WITH TRAILS AND BIKE LANES, MASTER PLAN. AND THEN ALSO IF THE BOND ELECTION, IF IT PASSED IN NOVEMBER, STAFF IS GOING TO HAVE TO SHIFT THE FOCUS AND START PLANNING OUT THOSE BOND PROJECTS. SO WE OBVIOUSLY HAVE A LOT, A LOT GOING ON. SO PROBABLY WHAT'S THE ON THE BIGGEST QUESTION ON EVERYBODY'S MIND IS WE TALKED ABOUT GENERAL FUND.
HOW DID YOU BALANCE THE BUDGET. SO I'M PLEASED TO SAY YOU ARE BEING WE'VE SUBMITTED TO YOU A BALANCED BUDGET OKAY. SO HOW DO WE DO THAT. AND AGAIN, I'M NOT GOING INTO THE WEEDS TODAY IN ALL THE ANALYTICAL DATA. BUT JUST SO YOU KNOW, KIND OF WHAT MAKES UP THAT BALANCE OR THAT.
SO WE HAD TO INCREASE OUR REVENUE PROJECTIONS. FORTUNATELY SALES TAX HAS BEEN DOING REALLY WELL. WE'RE BASED ON OUR TREND. WE'RE LOOKING TO END ABOUT 5% OVER WHERE WE WERE AT FY 24. SO THE ADOPT THE PROPOSED BUDGET ASSUMES THAT AMOUNT OF ABOUT 425,000 MORE, WITH THE NEW AND BLUE CITATIONS. ROLLING OUT AND JUST THE COOL FEATURES OF THAT AND THAT TEXT CAPABILITY, AND BEING ABLE TO STAY ON TOP OF THOSE WHO HAVE OUTSTANDING FINES, WE CAN EXPECT THAT WE WILL SEE AN INCREASE IN COLLECTIONS WITH THAT NEW SOFTWARE ROLLING OUT, AND THEN WE, MR. ABERNATHY, WANTS TO SPEAK WELL. AND ALSO ONE OF THE STRATEGIES WE'RE LOOKING AT AND WE'RE STILL WORKING WITH THESE, THE ECONOMIC DEVELOPMENT BOARD ON THIS. BUT, YOU KNOW, WE WERE LOOKING AT WAYS, IF YOU REMEMBER, BACK WHEN WE PRESENTED TO Y'ALL IN JUNE AT THE LAST AT THE LAST WORKSHOP, THAT WE WERE LOOKING DIFFERENT WAYS THAT WE COULD UTILIZE OTHER FUNDING SOURCES TO NOT ONLY BALANCE THE BUDGET, BUT ALSO HELP US TARGET SOME OF THE THINGS WE NEED TO ADDRESS. AND SO WE ARE WORKING RIGHT NOW WITH USING 359, PROPOSING, USING $359,000 FROM THE ECONOMIC DEVELOPMENT CORPORATION TOWARD A POLICE PROGRAM TO ADDRESS CRIME IN COMMERCIAL CORRIDORS. WE HAVE A LOT OF BURGLARIES AND BREAK INS. NOW. AGAIN, THIS THIS PROGRAM WOULD WOULD BE FOR THE CITY AS A WHOLE, BUT IT WOULD GO A LONG WAY AND REALLY ADDRESSING THOSE ISSUES. WE'RE STILL WORKING THROUGH THAT. I MEAN, WE DO HAVE NOT GOING INTO DETAIL. WE'LL HAVE MORE DETAIL AT THE AUGUST 12TH MEETING. BUT IF YOU KNOW, THERE'S ALSO CORRESPONDING CUTS WE COULD DO TO CLOSE THAT GAP. BUT OUR OUR APPROACH IS THAT THIS PARTNERSHIP IS A MORE WAY TO NOT ONLY OF OUR OVERALL STRATEGY AND BALANCING THE BUDGET, BUT ALSO TRYING TO ADDRESS CONCERNS IN OUR COMMERCIAL CORRIDOR THAT CAN BENEFIT OUR BUSINESSES. AND SO WE WILL HAVE MORE INFORMATION ON THAT AT THE AUGUST 12TH MEETING. BUT THAT'S THAT'S PART OF OUR OUR PROPOSED STRATEGY TO BALANCE THE BUDGET. AND ON THE EXPENDITURE SIDE, OF COURSE, SO WE'RE INCREASING SOME REVENUE PROJECTIONS, BUT WE'RE ALSO DECREASING EXPENDITURES. SO WE ASKED DEPARTMENTS GO BACK THROUGH YOUR BUDGETS. WHAT CAN WE CUT. WHAT CAN WE MAYBE USE ONE TIME FUNDS FOR. SO OVERALL WE WERE ABLE TO REDUCE 2 MILLION OUT OF THE DEPARTMENTAL BUDGETS.
ALSO WE TALKED ABOUT AT THE JUNE BUDGET WORKSHOP ABOUT UTILITY FUNDS. SO WE REALLOCATED PUBLIC WORK STAFF, PUBLIC WORKS ADMINISTRATION OVER TO UTILITY FUNDS, AND THEN LASTLY EMPLOYEE BENEFITS, WHICH WE'LL HEAR FROM THE HUB GROUP HERE SHORTLY WITH THE RECOMMENDATIONS THAT THEY WILL BE PRESENTING. WE'RE ASSUMING THAT IN THE PROPOSED BUDGET, WHICH KEEPS THE MEDICAL INSURANCE AND DENTAL INSURANCE FLAT, BEFORE WE WERE BUDGETING BASED ON MAYBE 12%. SO, BUT THEY WILL PRESENT MORE ON THAT HERE IN A MINUTE. YES, SIR. SO ON THE SECOND BULLET POINT THERE FOR REVENUE SAYS REQUESTED. SO I GUESS ECONOMIC DEVELOPMENT HAPPENED ACTUALLY APPROVED ANY FUNDING FOR ANYTHING THAT'S BEEN REQUESTED. WE PRESENT IT TO THEM LAST NIGHT. THEY DID TABLE. THEY DO WANT MORE INFORMATION. WE DO PLAN TO GO BACK TO THEM WITH THAT INFORMATION. AS I SAID
[00:20:01]
MENTIONED EARLIER, WE'RE WE'RE HOPING THAT ONCE WE GET THAT INFORMATION, THEY WILL MOVE FORWARD WITH IT. WE WILL IN AUGUST 12TH HAVE MORE DETAILS. WE WOULD HAVE CORRESPONDING CUTS IF THAT DOESN'T WORK OUT. BUT AGAIN, WE THINK OVERALL THIS IS PROBABLY A BETTER STRATEGY FOR THE CITY TO DO THIS. AND WE WILL BE BACK TO THE ECONOMIC CORPORATIONS TO ANSWER MORE QUESTIONS AND PROVIDE THE DATA THEY WANT TO MAKE THEIR DECISION. I'M NOT I'M NOT AN EXPERT ON HOW THAT FUND CAN BE USED, BUT OBVIOUSLY IF IT'S BEING REQUESTED AND THAT IT DOES MEET THE CRITERIA, WE DID, WE DID. YES, WE DID CONSULT WITH THE CITY ATTORNEY. YOU CAN THERE ARE SOME CITIES THAT ARE DOING IT. I BELIEVE PLANO AND RICHARDSON ALSO HAVE A SIMILAR PROGRAM. WE WOULD HAVE PERFORMANCE MEASURES THAT TRACK THE PERFORMANCE AND YOU COME BACK FOR A RENEWAL. BUT REALLY, LIKE I SAID, OUR PLAN WAS TO USE AS PART OF AN OVERALL PROGRAM SUPPRESSION UNIT TO ADDRESS, YOU KNOW, CRIME BURGLARIES, BREAK INTO VEHICLES, BUT IT COULD TARGET A LOT WHERE WE SEE WE SEE A LOT MORE ACTIVITY IN THOSE COMMERCIAL AREAS WHERE THOSE RESTAURANTS ARE. AND SO THAT'S THAT'S THE HOPE IS THAT WE CAN WE CAN GET THAT BENEFIT AS WELL.BUT YES, WE WILL DEFINITELY HAVE MORE INFORMATION AT THE AUGUST 12TH WORKSHOP ON THIS. OKAY.
WELL, I'LL ASK MY QUESTIONS THEN. OKAY. WELL LOOK, IT LOOKS WORTHWHILE OBVIOUSLY, BUT AND I KNOW THIS IS A DIFFERENT SUBJECT, BUT THE FOLKS ON THE EDC TRACKING THE MONEY THAT WE'RE USING THAT WE NORMALLY WOULDN'T USE TO MAKE SURE WE'RE WE ARE STAYING ON TRACK TO HAVE MONIES FOR THE BUSINESSES THAT TYPICALLY ASK FOR GRANTS FOR ANY, ANY TYPE OF GRANTS THAT THEY NORMALLY ASK FOR. YES. SO WHEN YOU LOOK AT THE BUDGET, YOU KNOW, FOR THIS YEAR, THERE'S STILL PLENTY OF MONEY IN THERE FOR INCENTIVE TYPE GRANTS. AND REALLY WHAT WHAT THIS DOES, YOU KNOW, WE'RE CURRENTLY ALREADY UTILIZING SOME EDC FUNDING TO HELP OFFSET ADMINISTRATIVE EXPENSES SUCH AS, YOU KNOW, THOSE RELATED. RIGHT. AND SO FORTH. YOU KNOW, BUILDING MAINTENANCE, YOU KNOW, AND WHATNOT. BECAUSE THE ECONOMIC DEVELOPMENT DEPARTMENT IS HERE AT CITY HALL AND THEY UTILIZE ALL THOSE DIFFERENT SERVICES, YOU KNOW, WITHIN WITHIN THE CITY. SO THAT'S ALREADY HAPPENING. AND MANY OTHER CITIES DO THAT. BUT WE'RE LOOKING TO DO HERE IS JUST EXPAND THAT A LITTLE BIT BECAUSE OF, AS ICM ABERNATHY SAID, A LOT OF OUR CRIMINAL ACTIVITY IS WITHIN THOSE COMMERCIAL CORRIDORS ALONG 67 I-20. YOU KNOW, WHERE YOU HAVE HOTELS AND YOU HAVE LARGE RETAIL ESTABLISHMENTS, RESTAURANTS, THAT KIND OF THING.
AND WE HAVE THE DATA TO PROVE THAT. AND THAT WAS THAT WAS ACTUALLY PROVIDED TO THE EDC ON FRIDAY. BUT, YOU KNOW, AS I SEE THEM, ABERNATHY SAID THEY DID HAVE SOME MORE QUESTIONS AND WANTED TO KIND OF BETTER UNDERSTAND, YOU KNOW, SOME OF THE POLICE PATROLS THAT WOULD OCCUR IN THE COMMERCIAL AREAS TO HELP ADDRESS THIS NEED AND SOME OF THE OTHER COSTS RELATED TO THAT. AND SO WE'RE WE'RE TRYING TO GET ANOTHER MEETING SCHEDULED HERE IN THE NEXT COUPLE OF WEEKS SO WE CAN GET THAT FINALIZED AND THEN BE READY TO GO FOR AUGUST 12TH AT YOUR NEXT WORKSHOP, I GUESS. SO AGAIN, WE WILL DIVE INTO THE WEEDS OF AUGUST 12TH. REALLY GETTING MORE SPECIFIC WITH THAT. JUST KIND OF AN OVERVIEW OF HOW WE WERE ABLE TO BALANCE THE GENERAL FUND BUDGET.
OKAY, SO PROPERTY, I DO HAVE A QUESTION. YES. SO WE'RE REDUCING EXPENSES BY $2 MILLION OKAY. AND SO MY QUESTION ALWAYS ENDS UP BEING IS WHAT ARE WE GIVING UP. YEAH SEVERAL THINGS. ONE TIME COST THAT WE CAN ADDRESS. NOW WE REDUCED ALSO SOME. WE ALSO FREEZING SOME POSITIONS FOR A PERIOD OF TIME TO MAKE SURE IF THERE'S ANY ONES I MISSED AS WELL IN THAT 2 MILLION I WANT TO MAKE SURE THAT I CAUGHT THE OTHERS. YEAH. NO DEAR, A COMBINATION OF SOME THINGS THAT WE'RE PROPOSING THAT WE'LL DISCUSS LATER ON IN THIS PRESENTATION IN TERMS OF MOVING TO ONE TIME, ONE TIME FUNDS SO THAT WE CAN GET GOING ON SOME OF THESE REQUESTS AND PROJECTS.
NOW, SOME OTHER THINGS KIND OF SIMILAR TO OUR PROCESS LAST YEAR. MR. WITH HAVING SOMEWHAT OF A PRIORITIZATION OF WHAT WAS REALLY NECESSARY GIVEN WHERE OUR BUDGET CONSTRAINTS WERE. AND SO THERE ARE SOME THINGS THAT SOME ADDITIONAL THINGS OVERALL THAT WOULD EITHER BE DELAYED, AS MR. ABERNATHY HAD SAID, IN THE AREAS OF POSITIONS, BUT ALSO PROJECTS AS WELL, AND SOME THINGS THAT WE HAD TO LOOK AT, THE TIMING OF WHICH MAY GET PUSHED INTO FISCAL YEAR 27. IN ONE EXAMPLE I'LL GIVE IS WE HAVE AN EXECUTIVE POSITION POSITION THAT'S VACANT HERE IN THE CITY MANAGER'S OFFICE. IT'S DEFINITELY A POSITION WE NEED, BUT WE'RE PROPOSING TO DELAY THAT POSITION UNTIL JANUARY. IN THE MEANTIME, WE CAN WE MAY MAINLY MANAGE OUR OWN CALENDARS. WE ALSO HAVE
[00:25:05]
OTHER TEAM MEMBERS, OUR FRONT DESK STAFF, HR CAN ASSIST, AS WELL AS SOME OF OUR TEAM MEMBER COMMUNICATIONS TO HELP US WITH SCHEDULING SOME MEETINGS AND COORDINATE THINGS. AGAIN, IDEALLY WE'D LIKE TO HAVE THAT POSITION, BUT THAT'S JUST ONE EXAMPLE OF WHERE BY JUST DELAYING THAT POSITION, WE CAN ACTUALLY CONTRIBUTE TO THIS CUMULATIVE SAVINGS OVERALL. BUT THAT'S JUST ONE ONE EXAMPLE HERE WITH WITHIN THE CITY ADMINISTRATION FOR EXAMPLE.OKAY. SO GETTING INTO PROPERTY TAXES. SO THE CERTIFIED TOOLS WERE RELEASED ON JULY 24TH FROM DALLAS CENTRAL APPRAISAL DISTRICT. AND WE GO THROUGH ALL THE PROCESS OF TRYING TO FINALIZE WHAT THAT TAX RATE LOOKS LIKE. SO OUR CERTIFIED VALUES ARE 4.5% HIGHER THAN THEY WERE IN 24, WHICH IS GOOD BECAUSE THAT'S NOT NEARLY AS HIGH AS THEY HAVE BEEN IN THE LAST FIVE YEARS. SO HOPEFULLY THAT MEANS THAT IT'S STARTING TO SLOW, SLOW DOWN A LITTLE BIT.
ACTUALLY, AS OF TODAY, I DO HAVE THE FINAL NUMBER. SO DALLAS COUNTY HAS ALREADY CERTIFIED THAT CALCULATION FOR US. AND SO WHAT THE PROPOSED TAX RATE WOULD BE FOR THE 2026 BUDGET IS THIS 0.600166. AND SO WHAT THAT MIGHT LOOK LIKE TO AN AVERAGE TAXABLE FAMILY HERE. SO THE NUMBER HERE, THE SINGLE FAMILY AVERAGE TAXABLE VALUE IS SOMETHING THAT IS A STATISTIC THAT THE CENTRAL APPRAISAL DISTRICT WOULD PUT OUT. AS YOU PUT YOU KNOW, EVERYTHING TOGETHER CUMULATIVELY ACROSS THE CITY AT LEAST FOR US RESIDENTS TYPE PROPERTIES. ON AVERAGE THE TAXABLE VALUE IS 263,000. SO WHAT THAT WOULD LOOK LIKE AGAINST THIS RATE IS AN ANNUAL CITY TAX OF 1583, WHICH IS ABOUT $83 MORE COMPARED TO 25 AND BROKEN DOWN ON A DAILY COST. THAT'S ABOUT $4.33 A DAY. SO THAT'S WHAT, $0.12 OR $0.22 MORE ON A DAILY COST. OF COURSE, THAT'S GOING TO VARY DEPENDING ON THE PERSON DEPENDING ON THE PROPERTY. AGAIN, THIS IS JUST AN AVERAGE. BUT JUST JUST TO SHOW YOU WHAT THAT IMPACT COULD, COULD LOOK LIKE. AND THEN JUST AS AN ESTIMATED IMPACT TO THE RESIDENTS HERE, WITH EVERYTHING ELSE THAT'S GOING ON HERE IN THE BUDGET. SO WE'RE ON THE FOURTH YEAR OF THE WATER SEWER RATES ORDINANCE. SO IT WOULD INCREASE THOSE RATES SO FORTH, YOU KNOW, 6000 GALLON, OF COURSE, AGAIN, BASED ON YOUR CONSUMPTION, THIS COULD VARY, BUT BASED ON A 6000 GALLON, THAT COULD BE ABOUT $8 MORE A MONTH. GARBAGE. AGAIN, EVERY YEAR THERE'S A CPI THAT'S PASSED ALONG TO THE CITY FOR INCREASES TO THAT CONTRACT. SO FOR CURBSIDE SERVICE, THIS IS THE RATE THAT I'M USING HERE. THE $1.45. SO IT'S ABOUT 5% MORE. NOTHING DIFFERENT FOR DRAINAGE. AND THEN TAKING INTO CONSIDERATION AGAIN THE CITY PORTION OF YOUR PROPERTY TAXES AND WHAT THAT WOULD LOOK LIKE, IT'S ABOUT $6.95 MORE A MONTH WITH THAT NEW AVERAGE TAXABLE VALUE AS THE EXAMPLE. SO THE MONTHLY IMPACT WITH ALL THE CHANGES AND UTILITIES AND THE PROPERTY TAXES ABOUT $16. BUT AGAIN, THAT'S GOING TO VARY DEPENDING ON THE USAGE OF UTILITIES. AND OBVIOUSLY DEPENDING ON WHAT YOUR TAXABLE VALUE IS OF YOUR PARTICULAR PROPERTY, YOU KIND OF PERSPECTIVE ON THAT. AND LASTLY MY BIG REVEAL. SO WE'VE BEEN TALKING ABOUT OPENGOV FOR A WHILE, AND I AM PLEASED TO SAY THAT THIS BUDGET HAS BEEN COMPLETELY BUILT THROUGH THE OPENGOV PLATFORM. SO IS MY INTENTION TO ACTUALLY RELEASE THIS TO THE CITIZENS AND PUT IT ON OUR WEBSITE LATER THIS WEEK, WHERE WHAT YOU HAVE IN FRONT OF YOU IS NOW ON THIS WEBSITE AND THIS WEB PORTAL. SO I'M GOING TO TAKE YOU THROUGH A LITTLE TOUR.
THERE IS A QR CODE IF YOU'D LIKE TO FOLLOW ALONG IN YOUR MOBILE APP. I WILL SAY THAT IT'S REALLY COOL AS A MOBILE FRIENDLY AND I'M JUST I REALLY LIKE IT. HOPEFULLY YOU WILL TAKE OUT YOUR PHONE AND SCAN THAT QR CODE COUNCIL MEMBERS EVEN THOUGH YOU HAVE THAT BOOK. SO THAT WAY YOU HAVE THAT YOUR DISPOSAL ONCE YOU DEPART HERE. SORRY. SO I'M ACTUALLY GOING TO GO TO THE WEBSITE VERSION, BUT AGAIN IT IS MOBILE FRIENDLY OR TABLET FRIENDLY. SO I'M JUST GOING TO AGAIN TAKE YOU ON A TOUR OF WHAT THIS WEBSITE LOOKS LIKE. SO OBVIOUSLY THE LANDING PAGE HERE, ANY OF THESE THINGS IN THE MENU, OF COURSE YOU'LL BE ABLE TO NAVIGATE THROUGH THE SITE VERY EASILY. YOU CAN EVEN CHANGE THE LANGUAGE. SO SPANISH SPEAKERS OR ENGLISH IS NOT YOUR NATIVE LANGUAGE. YOU CAN CHANGE IT AND IT WILL. IT'LL AUTOMATICALLY TRANSLATE. I CAN'T, YOU KNOW, SAY THAT IT'S PERFECT TRANSLATION OR ANYTHING, BUT YOU DO HAVE THE ABILITY TO DO THAT.
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SO ON THE HOME PAGE, AS YOU SEE HERE, IT'LL HAVE SOME INTRODUCTORY LINKS AND, YOU KNOW, BUDGET OVERVIEW AND DEPARTMENTS HERE THAT YOU CAN JUST QUICKLY LINK TO. IT ALSO HAS THESE IN THE MENU HERE. SO THE OVERVIEW JUST KIND OF HAS SOME OF THE OVERVIEW THINGS THAT WE WANT TO HIGHLIGHT. FOR EXAMPLE THE BUDGET AND BRIEF AGAIN WHICH IS IN YOUR YOUR YOUR YOUR BOOK THERE THAT THIS IS KIND OF, YOU KNOW, HIGH LEVEL BUDGET. AND SO THESE GRAPHS THAT ARE IN HERE, YOU CAN HOVER OVER THEM. THEY MAKE IT BIGGER. YOU CAN SEE THE NUMBERS AND THE PERCENTAGE OF THE TOTAL. SO THESE ARE ALL FUNDS. FOR EXAMPLE YOU'LL BE ABLE TO CLICK ON THE REPORTS AND IT TAKES YOU TO A DIFFERENT BROWSER HERE. BUT YOU'RE ABLE TO EXPAND THROUGH THE VARIOUS ITEMS. SO IF YOU WANT TO FILTER THROUGH GENERAL FUND FOR EXAMPLE YOU CAN COME IN HERE, IT HAS IT BY THE FUND, THEN IT BREAKS IT DOWN BY THE DIFFERENT TYPES. THAT'S WITHIN THIS FUND. THIS IS REVENUES. BUT YOU KNOW YOU CAN DRILL DOWN TO THE ACCOUNT LEVEL. ALL RIGHT. SO YOU COULD COME IN HERE AND JUST LOOK TO YOUR HEART'S CONTENT WITH ALL THIS YOU KNOW, AND DRILL DOWN. ALSO I'LL GO TO ANOTHER ONE LIKE GOING TO THE DEPARTMENT LEVELS. IT IS IT IS FORMATTED VERY SIMILARLY TO WHAT YOU'RE ACCUSTOMED TO SEEING IN THE BUDGET BOOKS, WHERE IT'S ALL DIVIDED OUT BY DEPARTMENTS AND THEN PROGRAMS. BUT AT THE DEPARTMENT BUDGET LEVEL, FOR EXAMPLE, THESE ARE DIFFERENT CHARTS I HAVE IN HERE THAT, FOR EXAMPLE, THIS IS GENERAL GOVERNMENT, WHICH IS, YOU KNOW, ALL THE INTERNAL SERVICES REALLY, IT GOES BACK TO 2023 AND ALL THE WAY UP TO PROPOSED 26. YOU CAN SEE HOW IT BREAKS DOWN BY THE SPECIFIC DIVISION. AGAIN, YOU CAN GO INTO THE REPORT AND YOU CAN DRILL DOWN EVEN FURTHER. LIKE I SAID TO THE ACCOUNT LEVEL. AND YOU CAN SEE THOSE AND ALSO HAS A TABLE VIEW OF IT. IT HAS, YOU KNOW, THE STAFFING. IT HAS ALL OF THAT INFORMATION THERE. AGAIN, WITH THE REPORTING BEHIND BEHIND IT. SO AGAIN, YOU SHOULD BE ABLE TO HOPEFULLY NAVIGATE WELL THROUGH THE SYSTEM. AND THERE'S ALSO A TABLE OF CONTENTS TO MAKE IT EASY. SO EVERYTHING THAT'S IN YOUR BOOK IS ON HERE I WILL SAY THAT ON THE MOBILE VERSION TABLES DON'T LOOK KIND OF GREAT. THEY KIND OF LOOK, I THINK YOU HAVE TO PUT IT INTO LANDSCAPE MODE. SO BECAUSE OTHERWISE THE NUMBERS GET SQUISHED. BUT OTHER THAN THAT, IT'S, YOU KNOW, IT LOOKS PRETTY EASY TO READ THROUGH EVEN ON YOUR, YOUR MOBILE APP. SO I JUST WANTED TO SHOW YOU, SHOW YOU THAT I'VE BEEN ABLE TO PUT THIS TOGETHER AND PUSH IT OUT TO YOU, AND HOPEFULLY IT'LL BE VERY EASY TO NAVIGATE WHAT YOU'RE NOT GOING TO SEE THROUGH THE WEBSITE. SO IF YOU'RE DRILLING DOWN THROUGH THOSE REPORTS, YOU'RE NOT GOING TO SEE LIKE THE LINE ITEM DETAIL. SO IF THERE'S FIVE THINGS THAT MAKE UP CONTRACTUAL SERVICES, YOU'RE NOT GOING TO SEE WHAT THOSE FIVE THINGS ARE. IT'S ONLY GOING TO DRILL DOWN TO THE ACCOUNT LEVEL OKAY. SO WHEN YOU SEE, YOU KNOW, SALARY AND BENEFITS NOW YOU CAN EXPAND TO SEE ALL THE THINGS THAT BREAK OUT SALARY AND BENEFITS. SO YOU'RE ABLE TO, LIKE I SAID, DRILL DOWN TO THAT LEVEL OF DETAIL. SO BUT I WOULD ENCOURAGE YOU TO AND I HAVE A HANDOUT HERE. SO YOU CAN HAVE THE QR CODE WITH YOU. SO YOU CAN ALWAYS HAVE THAT TO QUICKLY REFERENCE. BUT WE'LL GET THIS PUSHED OUT ON THE WEBSITE. PLEASE LET US KNOW YOUR FEEDBACK. THIS IS JUST THE YOU KNOW, THE START OF THIS. IT CAN ONLY IMPROVE FROM HERE. THE NEXT STEP IN THE OPENGOV USAGE WILL BE TO PUSH OUT THE TRANSPARENCY PORTAL, WHICH I HOPE TO DO THAT COME THE NEW FISCAL YEAR AND WITH THE TRANSPARENCY PORTAL WILL BE LIKE THE FINANCIAL MONTHLY FINANCIAL REPORTING AND THAT SORT OF THING. SO THAT WILL BE THE NEXT PHASE OF WHAT WE PUSH OUT TO OPENGOV. BUT HOPEFULLY LIKE BEING CONVENIENT, BEING MORE EFFICIENT WITH THE INFORMATION, BEING ABLE TO GIVE YOU THE ABILITY TO DRILL DOWN. HOPEFULLY YOU FIND IT TO BE A GOOD FEATURE. SO SURE THAT. AND I WILL SAY THE BOOK VERSION COMES FROM THE WEBSITE AND EXPORTING THE PAGES. SO SOME OF THE PAGES ARE, YOU KNOW, A LITTLE FONT LOOKS A LITTLE SMALL IN THE BOOK, BUT DEFINITELY LOOKS MUCH BETTER ON THE ACTUAL WEBSITE OR LOOKING THROUGH YOUR PHONE. SO JUST BE AWARE, TRY TO MAKE IT AS BIG AS I COULD WHEN I PRINTED THEM OUT. BUT YES. SO JUST AS YOU AS YOU LOOK THROUGH[00:35:05]
IT, LET ME KNOW. OF COURSE, IF YOU HAVE ANY QUESTIONS OR CONCERNS OR SOMETHING'S NOT WORKING. THERE'S A LOT OF LINKS WITHIN THIS THING. SO HUMAN ERROR IS LIKELY, BUT HOPEFULLY NOT ALL SLEEPY. SO AND YOU CAN JUST HAVE THIS AND PUT IT IN YOUR FOLDER JUST SO YOU HAVE THE LIKE I SAID, THE QR CODE, BUT THIS IS THE WEBSITE THAT WILL BE LAUNCHED OUT THIS WEEK. GOOD JOB. SO GOOD JOB. THANK YOU. AND SO I WON'T GO THROUGH THIS, BUT I WAS JUST AGAIN WANTED TO HIGHLIGHT THAT THE TRANSPARENCY PORTAL WILL BE FORTHCOMING AT THE END OF THE YEAR, THE BEGINNING OF THE FISCAL YEAR. AND THIS WAS JUST AN EXAMPLE. BUT I'LL WALK YOU THROUGH THE EXAMPLE RIGHT NOW. IS THERE ANY QUESTIONS AT THIS POINT? SO I KNOW THAT WAS THE KIND OF THE HIGH LEVEL OVERVIEW. THERE'S A LOT TO DIGEST. AND AGAIN WE'LL GET INTO THE GREATER DETAIL ON[1.B. Council to receive a presentation from HUB International on the City Employee Medical and Dental benefits]
THE AUGUST 12TH MEETING. SO OUR NEXT PRESENTATION ACTUALLY WILL BE DONE BY ANDREW WHO'S FROM HUB INTERNATIONAL. I'LL LET HIM COME UP AND INTRODUCE HIMSELF AND WE'LL GET TO I'M SORRY. THE SECOND AGENDA ITEM IS GOING TO BE FORMALLY ANNOUNCED THAT ALL RIGHT. AND HERE YOU GO. SORRY.ALL RIGHT. GREAT. THANK YOU. ALL RIGHT. GOOD EVENING. I'M SORRY. ALL RIGHT. GREAT. WELL GOOD EVENING, MAYOR COUNCIL. MY NAME IS ANDREW. I'M A SENIOR ACCOUNT EXECUTIVE AT HUB INTERNATIONAL.
DREW HERDER WITH ME HERE AS WELL. HE'S ANOTHER ACCOUNT EXECUTIVE AT HUB. TONIGHT. WE ARE HERE TO PRESENT THE 2025 2026 BENEFIT RECOMMENDATIONS. GOING THROUGH THE PRESENTATION.
THERE'S GOING TO BE A LOT OF INFORMATION WE'RE GOING TO COVER. JUST TO GIVE YOU AN OVERVIEW. FIRST WE'RE GOING TO LOOK AT THE CURRENT STATE OF THE BENEFITS PROGRAM. TODAY. WE'LL GET INTO THE RFP THAT WE RELEASED THE REQUEST FOR PROPOSAL. THAT WAS A VERY EXTENSIVE PROCESS. WE'LL BE LOOKING AT THE RECOMMENDATIONS FOR MEDICAL PHARMACY AND THEN ALSO THEN GETTING INTO THE OTHER LINES OF COVERAGES. SO AS I WORK THROUGH THE PRESENTATIONS, IF THERE'S ANY QUESTIONS, COMMENTS, CONCERNS PLEASE FEEL FREE TO STOP ME. I KNOW THERE'S A LOT TO DIGEST HERE, BUT I'LL TRY AND SIMPLIFY IT FOR YOU ALL. SO LOOKING AT THIS FIRST SLIDE, THIS IS JUST GIVING YOU THE CURRENT STATE OF THE BENEFITS PROGRAM FOR THE CURRENT PLAN YEAR, WHICH GOES INTO EFFECT OCTOBER 1ST. RIGHT NOW THE CITY IS CURRENTLY CONTRACTED WITH BLUE CROSS BLUE SHIELD OF TEXAS. THAT CONTRACT HAS BEEN IN PLACE SINCE OCTOBER 1ST OF 2019. PRIOR TO THAT, THE CITY WAS CONTRACTED WITH TEXAS MUNICIPAL LEAGUE, OR TML. THAT WAS A SELF-FUNDED CONTRACT. THE CITY MOVED TO BLUE CROSS BLUE SHIELD UNDER A FULLY INSURED ARRANGEMENT, SO BLUE CROSS BLUE SHIELD IS TAKING ALL THE RISK LIABILITY TODAY. NOW, I THINK IT'S REALLY IMPORTANT TO LOOK AT THE CURRENT PLAN PERFORMANCE. SO WE MEET WITH STAFF A FEW TIMES A YEAR AND WE'RE LOOKING AT THE PLANT PERFORMANCE OR CLAIMS UTILIZATION ON THE PLAN THE LOSS RATIO. THAT'S THAT SECOND BULLET POINT THAT IS JUST TAKING. THE TOTAL CLAIMS HAVE BEEN PAID OUT OVER THE LAST 12 MONTHS. DIVIDED BY THE PREMIUM GIVES YOU THAT LOSS RATIO. THE LOSS RATIO RIGHT NOW IS SITTING AT 105%, MEANING THAT THE PLAN UNFORTUNATELY IS NOT RUNNING VERY WELL. THE LOSS RATIO UNDER FULLY INSURED CONTRACT IS 85%, SO THEY PUT ABOUT A 15% MARGIN IN THERE FOR THEIR TAXES, FEES, PROFITS REALLY TO KEEP THE LIGHTS ON AT BLUE CROSS BLUE SHIELD. SO ANYTHING THAT'S AT 85% OR ABOVE IS GOING TO WARRANT AN INCREASE FROM THE MARKET. SO WHEN WE MET WITH STAFF FOR A MID-YEAR REVIEW, WE WERE PROJECTING AN INCREASE TO PREMIUMS. NOW YOU CAN SEE THE LAST BULLET POINT. THE CITY DID RECEIVE AN INITIAL PREMIUM INCREASE OF 23.8% FROM BLUE CROSS BLUE SHIELD. THE CITY ACTUALLY HAD NOT RELEASED AN RFP FOR MEDICAL INSURANCE FOR OVER FIVE YEARS, SO THIS WAS THE PERFECT TIME TO GO OUT TO MARKET. SO WE RELEASED A REQUEST FOR PROPOSAL FOR BOTH MEDICAL AND DENTAL INSURANCE. THERE ARE OTHER POLICIES IN PLACE SUCH AS VISION, LIFE, DISABILITY, VOLUNTARY WORK, SIDE PRODUCTS. THOSE DID NOT HAVE TO BE BID OUT THIS YEAR BECAUSE THEY ARE GUARANTEED PERIODS, BUT MEDICAL USUALLY RENEWS EACH YEAR. IT'S A ONE YEAR TYPE OF AGREEMENT WITH DENTAL INSURANCE. IT CAN RENEW EVERY TWO YEARS. SO BUT THAT WAS THOSE WERE THE TWO POLICIES THAT WE WENT OUT TO BID ON. WHEN WE RELEASED THIS RFP, WORKING THROUGH PROCUREMENT, WE ISSUED THE RFP OUT TO OVER 40 VENDORS IN THE MARKETPLACE. WE HAD NINE RESPONSES. THAT'S A PRETTY GOOD SHOWING. WE HAD SIX ON MEDICAL, NINE ON DENTAL, ON THE MEDICAL RESPONSES. WE HAD CARRIERS SUCH AS BLUE CROSS, CIGNA, UNITEDHEALTHCARE, AETNA, TEXAS HEALTH. THEY ALL RESPONDED. SO A REALLY GOOD SHOWING OF RESPONSES THIS YEAR. SO WHAT I'M GOING TO GET INTO NEXT IS LOOKING AT THE CURRENT BENEFITS THAT ARE IN PLACE TODAY FOR THE CITY OF BUNKERVILLE EMPLOYEES AND PRE 65 RETIREES. SO YOU'LL SEE ON THIS PAGE THERE'S TWO COLUMNS. AND YOU'LL HAVE ALL THE MEDICAL BENEFITS OUTLINED HERE FROM DEDUCTIBLE OUT-OF-POCKET MAXIMUM COINSURANCE LEVELS. AND THEN ALL THE COPAYS FOR THINGS LIKE PRIMARY CARE PHYSICIANS, SPECIALISTS, PREVENTATIVE CARE ALL THE WAY DOWN TO PRESCRIPTION DRUG COVERAGE. WE'VE ACTUALLY
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HAD SOME REALLY STRONG YEARS WITH BLUE CROSS BLUE SHIELD WITH RATE PASSES OR EVEN RATE DECREASES. AND DURING THAT PERIOD, WE HAVE REALLY NOT HAD TO ADJUST BENEFITS OVER THE LAST FIVE YEARS. WITH BLUE CROSS BLUE SHIELD, I CAN'T SAY THAT'S THE SAME WITH OTHER WITH OTHER CITIES THAT WE WORK WITH TODAY. SO WE'VE BEEN ABLE TO MAINTAIN THESE CURRENT BENEFITS REALLY THE LAST FIVE YEARS. I'D SAY WE'RE MAKING SOME MINOR TWEAKS DURING THAT TIME PERIOD, BUT WE'LL FIND THAT MOST OF YOUR EMPLOYEES ARE CURRENTLY ENROLLED IN THIS PPO PLAN. THAT'S A TRADITIONAL PLAN DESIGN. IT HAS A $2,000 DEDUCTIBLE, $4,000 OUT OF POCKET MAXIMUM. THAT'S THE MAXIMUM LIABILITY FOR EMPLOYEES. AND THEN YOU'LL SEE ALL THE CO-PAYS ASSOCIATED BELOW. ABOUT 80 EMPLOYEES TODAY ARE CURRENTLY ENROLLED IN THE HIGH DEDUCTIBLE HEALTH PLAN. THAT'S AN HSA PLAN.THE HSA PLAN, AS YOU CAN SEE, HAS NO CO-PAYS ASSOCIATED WITH THAT PLAN BECAUSE TO BE A QUALIFIED HSA PLAN, YOU CANNOT HAVE CO-PAYS UNDER THAT OPTION. SO THE EMPLOYEE IS RESPONSIBLE FOR THAT FIRST $3,300. ONCE THEY HIT THAT $3,300, THE 80% COINSURANCE THEN KICKS IN UP TO AN OUT-OF-POCKET MAXIMUM OF $6,000. THAT'S THEIR MAXIMUM LIABILITY. SO AS I MENTIONED BEFORE, NO CO-PAYS ASSOCIATED WITH THAT PLAN. SO THERE IS MORE LIABILITY THAT FALLS ONTO THE EMPLOYEE AND THEIR DEPENDENTS. NOW, WHAT THE CITY DOES TO TRY AND DRIVE ENROLLMENT INTO THAT PLAN IS THEY PROVIDE HSA CONTRIBUTIONS, HSA PLANS. IT'S KIND OF LIKE A FLEXIBLE SPENDING ACCOUNT. IT'S NOT A USE OR LOSE IT. THESE HSA FUNDS CAN ROLL OVER YEAR OVER YEAR SO THE CITY CAN FUND INTO HSA ACCOUNTS. EMPLOYEES CAN ALSO CONTRIBUTE INTO THEIR HSA ACCOUNTS PRETAX.
SO THERE'S A LOT OF TAX ADVANTAGED ITEMS BY EMPLOYEES ENROLLING IN THAT PLAN OPTION TODAY. THANK YOU. SO WHAT WE'RE LOOKING AT HERE ON SLIDE 19 A LOT OF NUMBERS HERE. BUT YOU'LL SEE MEDICAL BENEFITS. YOU'LL SEE FINANCIALS AND YOU'LL SEE EMPLOYEE ONLY SPOUSE CHILDREN AND FAMILY WORKING TO THE RIGHT. YOU'LL SEE HOW MANY EMPLOYEES ARE ENROLLED IN THE PPO PLAN, HOW MANY EMPLOYEES ARE IN HSA OPTION, AND THEN HOW MANY RETIREES ARE CURRENTLY ENROLLED.
THERE ARE SIX RETIREES ARE PRE 65 RETIREES ENROLLED TODAY. IN TOTAL, 234 TOTAL SUBSCRIBERS.
NOW LOOKING IN THIS FIRST COLUMN HERE, WHAT YOU WILL SEE IS THAT IS THE TOTAL MEDICAL SPEND. SO THAT'S EMPLOYEE PLUS EMPLOYER COST SHARE. SO THAT'S OVER $3 MILLION WORTH OF TOTAL LIABILITY TO ADMINISTER THE HEALTH PLAN. BLUE CROSS BLUE SHIELD AS I MENTIONED BEFORE, THEIR ORIGINAL RENEWAL CAME IN AT A 23.8% INCREASE. THAT WAS A LITTLE BIT ABOVE OUR PROJECTIONS THAT WE PROVIDED THE CITY. SO AGAIN, WE MADE THAT RECOMMENDATION GO OUT TO BID. WE WENT THROUGH A FORMAL RFP PROCESS THROUGH OUR NEGOTIATIONS. AS YOU CAN SEE IN THAT THIRD COLUMN, BAFFOE STANDS FOR BEST AND FINAL OFFERS. THEY CAME DOWN TO A 10.2% INCREASE. SO THAT WAS THROUGH OUR JUST NEGOTIATIONS, THROUGH THIS PROCESS. NOW THERE'S A FEW THINGS HERE THAT I WANT TO MENTION. THIS IS ASSUMING THE CURRENT PLAN DESIGNS THAT YOU HAVE IN PLACE TODAY. AND IN THE RED, YOU CAN SEE THAT THOSE PREMIUMS DO NOT INCLUDE A BUNDLING DISCOUNT OF 1%. IT'S LIKE HOME AND AUTO. IF YOU BUNDLE YOUR MEDICAL AND DENTAL THEY'RE GOING TO GIVE YOU A DISCOUNT. SO SAME WITH MEDICAL AND DENTAL HERE. IT SAVES THE CITY ABOUT $33,000 BY DOING THAT. ON TOP OF THAT, BLUE CROSS BLUE SHIELD HAS AGREED TO A $64,000 WELLNESS ALLOWANCE, OR ESSENTIALLY A PREMIUM CREDIT TO THE CITY OF DUNCANVILLE, AS WELL AS A $5,000 TECHNOLOGY CREDIT.
THAT TECHNOLOGY CREDIT CAN BE USED TO PAY FOR THE CITY'S BENEFITS ADMINISTRATIVE SYSTEM.
BUT OVERALL, IF WE FACTOR IN THE 10.2 AND THEN FACTOR IN ALL THOSE CREDIT DOLLARS, THE NET INCREASE IS SITTING AT A 7.1% INCREASE OVERALL. SO FROM WHERE WE STARTED TO WHERE WE ENDED MUCH BETTER. BUT AGAIN, WE'RE STILL LOOKING AT INCREASED COST. IF YOU WERE TO RENEW WITH BLUE CROSS BLUE SHIELD OF TEXAS. NOW ON THIS NEXT SLIDE, THE NEXT BEST OPTION WE HAD ON THE TABLE, OR REALLY THE BEST OPTION WE HAD FROM OUR MARKETING RESULTS WAS FROM CIGNA. CIGNA IS HIGHLIGHTED IN THE GREEN HERE, SOMETHING THAT WE ASKED CIGNA TO DO DURING THIS PROCESS WAS TO MIRROR BENEFITS AS CLOSELY AS POSSIBLE. WE UNDERSTAND THAT IT'S CHALLENGING TO DO THAT, BUT THEY DID A REALLY GOOD JOB OF MATCHING BENEFITS. SO ANYTHING THAT IS IN RED IS A DIFFERENTIAL. SO DOWN HERE FOR EXAMPLE THAT'S A MAIL ORDER BRAND NAME DRUGS. IT'S ONLY GOING UP $0.50 FOR THE MEMBERS IF THEY DO GO THROUGH MAIL ORDER. SO VERY MINOR BUT FOR URGENT CARE FOR EXAMPLE IF A MEMBER GOES OUT OF NETWORK TODAY IT'S DEDUCTIBLE 50%. IT'S A $75 CO-PAY INSTEAD FOR THE PPO PLAN. SO A LITTLE BIT OF AN UPGRADE THERE ON THAT PIECE. BUT REALLY THE BENEFITS ARE VERY MUCH IN LINE, WHICH IS REALLY POSITIVE TO SEE. I WILL TALK ABOUT IN A MOMENT THE DISRUPTION THAT WE WILL SEE IF THE CITY DOES DECIDE TO MOVE TO CIGNA, BECAUSE FROM THIS STANDPOINT, IT LOOKS VERY MUCH APPLES TO APPLES. BUT THERE ARE SOME SOME PAIN POINTS THAT MEMBERS COULD FACE BY MAKING THIS CHANGE. SO I WANT TO BE VERY TRANSPARENT ABOUT THAT. SO ON PAGE SLIDE 21, AGAIN, THIS IS JUST LIKE THE LAST SLIDE THAT WE SHOWED WHEN WE WERE LOOKING AT
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BLUE CROSS BLUE SHIELD. AGAIN, THAT 10.2% INCREASE THAT REPRESENTS A $312,000 INCREASE TO TOTAL COST. BUT IF YOU LOOK AT CIGNA OVER HERE ON THE VERY RIGHT HAND SIDE, THEY ARE PRESENTING A 1% INCREASE TO PREMIUMS, SO MUCH LESS THAN WHAT BLUE CROSS BLUE SHIELD IS PRESENTING. WHAT I DID ON THIS SLIDE TOO, IS I SHOWED THE DOLLAR DIFFERENCE BETWEEN CIGNA AND CURRENT. AND THEN IN THIS TAB I SHOWED WHAT'S THE DOLLAR DIFFERENCE BETWEEN BLUE CROSS BLUE SHIELD BAFFO THEIR BEST AND FINAL OFFER AND WHAT'S THE PERCENTAGE DIFFERENCE. SO BY MOVING TO CIGNA YOU CAN SEE THAT'S GOING TO SAVE OVER $280,000. I WILL TELL YOU I WORK WITH ABOUT 20 OTHER MUNICIPALITIES IN THE IN THE STATE OF TEXAS. THIS IS THE ONLY GROUP THIS YEAR THAT I'VE SEEN WITH A DECREASE. THE AVERAGE INCREASE I'M SEEING RIGHT NOW IS RANGING FROM 10 TO 15% ACROSS ACROSS OUR BLOCK OF BUSINESS. MEDICAL TREND RIGHT NOW IS SITTING ABOUT 8%, PHARMACY TRENDS SITTING ABOUT 11%. SO COSTS OF GOODS SERVICE IS JUST INCREASING EVERY YEAR. SO TO SEE THAT WE HAVE AN OFFER THAT'S COMING IN AT A 1% INCREASE, IT LOOKS VERY ATTRACTIVE. NOW WITH CIGNA'S FINAL OFFER. THERE'S A LOT OF NOTES DOWN HERE THAT I WANT TO POINT OUT TO. FIRST OFF, THEY'RE PRESENTING A 14.9% RATE CAP FOR NEXT YEAR. WHAT THAT MEANS IS THAT'S THE HIGHEST INCREASE THAT THEY CAN PRESENT NEXT YEAR. SO AS I TALKED ABOUT BEFORE, YOUR LOSS RATIO BEING OVER 100%, IF YOU MOVE TO CIGNA, SAY THIS NEXT YEAR IN THAT RATE CAP WAS ON PLACE, YOU'RE PROBABLY FACING ANYWHERE BETWEEN A 30 TO 40% INCREASE FOR THE 2026 2027 PLAN YEAR. BUT CIGNA SAID, YOU KNOW WHAT, WHAT WE'RE GOING TO DO, WE'RE GOING TO CAP OUR PREMIUM INCREASE AT 14.9. THAT'S THE HIGHEST INCREASE THAT THEY CAN PROVIDE NEXT YEAR.THERE IS ONE SLIGHT CAVEAT TO THAT. THEY SAID IF THERE IS AN EMERGING CLAIMANT THAT IS GOING TO BE AT $750,000 OR MORE, THAT RATE CAP WOULD BE REMOVED. NOW, WE LOOKED AT UTILIZATION OVER THE LAST FIVE YEARS. I BELIEVE THERE'S ONLY BEEN ONE CLAIMANT THAT'S BEEN OVER $750,000. SO THE ODDS OF THAT ACTUALLY HAPPENING AGAIN ARE VERY LOW. ON TOP OF THAT, THEY ARE PROVIDING THE CITY A $150,000 MEDICAL AND DENTAL BUNDLING CREDIT. SO JUST BY BUNDLING, THEY'RE GOING TO PROVIDE $150,000. THAT $150,000 IS NOT IN THIS ANALYSIS UP HERE. SO THAT'S JUST ADDITIONAL SAVINGS TO THE CITY. ON TOP OF THAT, THEY'RE PROVIDING THE CITY A $25,000 WELLNESS FUND. SO THAT FUND CAN BE USED FOR PROGRAM ENHANCEMENTS, EMPLOYEE COMMUNICATIONS, WELLNESS INITIATIVES. SO THAT MONEY HAS TO BE USED WITHIN THE PLAN YEAR. IT'S MORE OF A USE IT OR LOSE IT. IF YOU DON'T USE THAT $25,000 NEXT YEAR, IT WILL BE REMOVED. BUT WE WILL WORK WITH STAFF ON HOW TO MAXIMIZE THOSE FUNDS. THEY'RE ALSO PROVIDING A $10,000 TECHNOLOGY CREDIT. TODAY IT'S $5,000 UNDER BLUE CROSS BLUE SHIELD. AND SO WHEN WE'RE LOOKING AT THE NET NET DECREASE WITH ALL OF THESE CREDITS COMBINED, YOU CAN SEE IT'S A 3.9% DECREASE OR IT'S SAVING $117,000 TO THE CITY OF DUNCANVILLE. SO OVERALL VERY POSITIVE NEWS TO SEE THAT THERE IS SAVINGS ON THE TABLE. IF YOU ALL WERE TO MAKE THE DECISION TO MOVE TO CIGNA. NOW, PART OF THIS PROCESS THAT WE LOOK AT IS WE DON'T WANT TO MAKE THE CHANGE, AND THEN IT DISRUPTS EMPLOYEES BY HAVING A LESSER NETWORK. SO WHAT WE DID LOOK AT VERY CLOSELY WAS THE NETWORK MATCH SUMMARY.
THAT'S IN THE BOTTOM RIGHT HAND CORNER. WE RAN ALL THE BLUE CROSS BLUE SHIELD PROVIDERS. WE RAN ALL OF THE CIGNA PROVIDERS PUT THEM SIDE BY SIDE. THERE WAS A 98.2% MATCH. THAT IS GREAT NEWS TO SEE. I HAVE RUN INTO SITUATIONS WHERE THIS LOOKS REALLY ATTRACTIVE. THAT NUMBER IS SITTING AT 7,080%, MEANING THAT A LARGE PORTION OF YOUR MEMBERS ARE GOING TO BE IMPACTED IN A NEGATIVE WAY. CIGNA, BLUE CROSS BLUE SHIELD, UNITEDHEALTHCARE ARE THE THREE MAJOR FIRMS HERE IN THE STATE THAT HAVE THE MOST ROBUST COVERAGE OPTIONS OR NETWORK. SO WE WOULD SO THERE WOULD BE A LITTLE BIT OF DISRUPTION FOR MEMBERS. I THINK IT'S JUST A HANDFUL OF EMPLOYEES. BUT TO SEE IT'S AT 98.2%, THAT'S REALLY FAVORABLE FOR CIGNA. NOW IF WE DO DECIDE OR THE CITY MAKES THAT DECISION TO MOVE TO CIGNA, WHAT ARE THE PAIN POINTS FOR MEMBERS? AS I MENTIONED BEFORE, CHANGE IN NETWORK AGAIN, THERE COULD BE SOME MEMBERS IMPACTED BY THAT.
AND ALSO THE LARGEST CHANGE THAT WE TYPICALLY SEE IS A FORMULARY CHANGE. WHAT I MEAN BY THAT, PRESCRIPTION DRUGS. SO EVERY VENDOR IS GOING TO HAVE THEIR OWN FORMULARY. ONE DRUG TODAY UNDER BLUE CROSS BLUE SHIELD MAY BE A GENERIC DRUG, BUT IF YOU GO TO CIGNA, MAYBE A BRAND NAME DRUG, SO THEY MAY BE INSTEAD OF PAYING, LET ME GO BACK A FEW SLIDES. I'M PAYING $10 TODAY UNDER BLUE CROSS BLUE SHIELD. I MAY BE AT $35 IF WE MOVE TO CIGNA, BUT ON THE FLIP SIDE, THERE COULD BE SOME MEMBERS THAT ACTUALLY SEE THAT IN A POSITIVE MANNER. AND ALSO PART OF PRESCRIPTION DRUG CHANGES IS PRIOR AUTHORIZATION. SO UNDER BLUE CROSS BLUE SHIELD YOU MAY
[00:50:01]
BE TAKING MEDICATION. YOU GOT A PRIOR AUTHORIZATION COMPLETED. YOU MOVED TO CIGNA. CIGNA WILL REQUEST ANOTHER PRIOR AUTHORIZATION. SO IT'S JUST MORE HOOPS TO GO THROUGH FOR EMPLOYEES. BUT WE DO RECOMMEND IF YOU ALL MAKE THIS CHANGE THAT EMPLOYEES TALK WITH THEIR DOCTORS. THEY GET THAT PRESCRIPTION FILLED RIGHT BEFORE THE EFFECTIVE DATE, SO THEY CAN HAVE THOSE CONVERSATIONS WITH THEIR PROVIDERS, AND THEY'RE NOT RUNNING INTO ANY DELAYED CARE, FOR EXAMPLE. ALSO, ANOTHER DISRUPTION POINT THAT WE CAN LOOK AT IS, YOU KNOW, MAKING THAT CHANGE FOR STAFF, THAT CAN BE CHALLENGING, RIGHT? WE'RE GOING TO HAVE TO GO THROUGH OPEN ENROLLMENT. WE'RE GOING TO BE COMMUNICATING ALL THESE NEW BENEFITS. NEW ID CARDS WOULD NEED TO BE ISSUED TO MEMBERS. AGAIN. THE PLAN STARTS OCTOBER 1ST. SO WE ARE UNDER A TIGHT TIMELINE TO GET EVERYTHING MOVING AND PUSHED OUT TO EMPLOYEES. WE DO HAVE OPEN ENROLLMENT DATES SCHEDULED RIGHT NOW IN THE UPCOMING WEEKS, BUT AGAIN, THAT IS A PRETTY TIGHT TIMELINE. WE'RE GOING TO HAVE TO TALK A LOT WITH EMPLOYEES ABOUT THE UPCOMING CHANGES. IF THIS DOES GO INTO EFFECT, BUT WE DO HAVE A CALL CENTER OPTION FOR EMPLOYEES. SO WHEN THEY'RE GOING THROUGH THE OPEN ENROLLMENT PROCESS, THEY CAN CALL INTO OUR CALL CENTER. OUR CALL CENTER CAN HELP EMPLOYEES NAVIGATE THE OPEN ENROLLMENT PROCESS, ANSWER THOSE QUESTIONS ABOUT, HEY, MY DRUGS.OR I HAVE QUESTIONS ABOUT MY PROVIDER, THAT RESOURCE IS AVAILABLE. WE ALSO HAVE A DEDICATED ACCOUNT MANAGER FOR EMPLOYEES THAT THEY CAN REACH OUT TO IF THEY HAVE ANY SPECIFIC QUESTIONS. SO I JUST WANT TO MAKE YOU AWARE THAT ANYTIME THERE'S A CHANGE TO MEDICAL PROVIDERS, THESE ARE THE KEY COMPONENTS THAT WE DO SEE. BUT AGAIN, THE SAVINGS BY MOVING TO CIGNA OR MAKING THAT RECOMMENDATION TO SAVINGS IS SIGNIFICANT. AND I AND I WOULD ALSO POINT OUT SOMETHING ABOUT BLUE CROSS BLUE SHIELD. THEY DID NOT PROVIDE A RATE CAP FOR NEXT YEAR LIKE CIGNA. SO WHAT THAT MEANS IS THEY'RE AT 10.2%. YOU COULD BE FACING A 2,030% INCREASE NEXT YEAR. WE'RE GOING THROUGH ANOTHER RFP PROCESS AGAIN NEXT YEAR. I LOOK AT THIS.
IF YOU WERE TO MOVE TO CIGNA, IT WOULD BE MORE OF A TWO YEAR TYPE DEAL. WE WOULDN'T WANT TO DO AN RFP AGAIN NEXT YEAR. SO JUST SOMETHING TO CONSIDER WHEN WE'RE LOOKING AT THAT IS WE REALLY THOUGHT THAT SECOND YEAR PROTECTION WAS A KEY COMPONENT. PART OF THIS ANALYSIS IS THAT 26% INCREASE PROJECTED FOR. ABOVE THE CAP RIGHT THERE FOR NEXT YEAR. SO YOU SAID WITH THE CAP YOU'RE PROTECTED FROM THAT INCREASE THAT'S GOING TO HIT 26%. WHAT'S DRIVING THAT 26% INCREASE. THAT'S WHAT WE'RE I'M SORRY I'M TRYING TO LOOK AT THAT 26% NUMBER. THAT ISN'T THAT THE NUMBER YOU GAVE US THAT IT WOULD GO UP. THAT WAS THE ORIGINAL THIS NUMBER HERE, THE 23.8. THAT WAS THE ORIGINAL OFFER. THIS IS THEIR BEST AND FINAL OFFER AT 10.2. THIS IS BLUE CROSS BLUE SHIELD I GET THAT, BUT YOU SHOWED A CAP THERE. AND MAYBE I MISUNDERSTOOD WHAT YOU WERE SAYING. 14.9% RATE CAP, BUT IT SOUNDED LIKE YOU PROJECTED WITHOUT THAT CAP. OH, IT COULD, IT COULD BE MUCH HIGHER. YES. OKAY. AND WHAT'S DRIVING THAT? THAT IS HIGH COST CLAIMANTS. SO THOSE ARE CATASTROPHIC CLAIMANTS. THOSE ARE CLAIMANTS THAT ARE $50,000 AND MORE IN SPEND. PREVIOUS YEARS WE HAD NOT SEEN THAT. A LOT OF THE I THINK YOUR HIGHEST CLAIM IN A FEW YEARS AGO WAS SITTING AROUND $100,000. THE LAST 12 MONTHS WE'VE SEEN MULTIPLE OVER $100,000, UNFORTUNATELY. SO. AND SOME OF THESE CLAIMANTS ARE GOING TO BE ONGOING. THAT'S WHAT WE'RE PROJECTING. SO WE ANTICIPATE EVEN, YOU KNOW, IF YOU WERE TO RENEW BLUE CROSS BLUE SHIELD, SEEING THE TRENDS AND THE UTILIZATION, WE'RE PROBABLY LOOKING AT ANOTHER INCREASE WITH BLUE CROSS BLUE SHIELD IN THE 2026 2027 YEAR. OKAY. ALL RIGHT. SO KIND OF GETTING TOWARDS THE END HERE. THIS IS OUR RECOMMENDATION. MOVING MEDICAL OVER TO CIGNA. WE JUST SHOW HERE THE SAVINGS OF $117,000. WE TALK ABOUT THE RATE CAP OF 14.9. AND THEN ALSO WE TALK ABOUT JUST SOME OF THOSE OTHER ITEMS THAT THEY'RE PROVIDING. SO THE $25,000 WELLNESS FUNDS, ONE OF THE $10,000 TECHNOLOGY COMMUNICATION FUNDS, 150,000 $150,000 INVOICE CREDIT. THEN ALSO, THEY'RE PROVIDING THE CITY THREE EMPLOYEE ASSISTANCE PROGRAM VISITS. THERE IS AN EMPLOYEE ASSISTANCE PROGRAM TODAY THAT THE CITY HAS. BUT UNDER ALLIANCE WORK PARTNERS, THIS IS JUST AN ADDED BENEFIT FOR MEMBERS. THIS IS MORE AROUND MENTAL HEALTH RESOURCES. SO THIS IS JUST AN ADD ON FEATURE THAT THEY'RE PROVIDING PART OF THEIR BEST AND FINAL OFFER. WE ARE ALSO MAKING THE RECOMMENDATION TO MOVE TO CIGNA FOR DENTAL INSURANCE AS WELL FOR NEXT YEAR. GOOD NEWS ABOUT THIS. IT'S A 7% DECREASE TO CURRENT PREMIUMS, OR ABOUT $13,000 IN SAVINGS. BY MAKING THAT CHANGE. NOW AGAIN, TO JUST MENTION, BY MOVING DENTAL PROVIDERS, THAT COULD ALSO BE DISRUPTIVE IN TERMS OF NETWORK CHANGING FOR THE MEMBERS. BUT CIGNA WAS THE MOST COMPARABLE TO BLUE CROSS BLUE SHIELD OUT OF THE MARKET. A NICE THING ABOUT THIS IS THAT CIGNA IS ALSO GOING TO BE ENHANCING THE BENEFITS FOR. THERE'S TWO PLAN DESIGN OPTIONS OFFERED TO EMPLOYEES. THERE'S A BASE PLAN AND A BUYOUT PLAN OPTION. THE BUYOUT PLAN OPTION HAS ORTHODONTIA COVERAGE COVER FOR EMPLOYEES. TODAY, IT'S ONLY COVERED FOR CHILDREN UNDER
[00:55:06]
CIGNA. THEY'RE GOING TO COVER ORTHODONTIA FOR ADULTS NOW. SO THOSE ADULTS MISSED GETTING ORTHODONTIC CARE WHEN THEY WERE YOUNGER. THEY CAN GET THAT NOW UNDER CIGNA. SO THAT'S GREAT NEWS. ANOTHER THING WITH THIS THE RATES WOULD BE GUARANTEED FOR TWO YEARS. SO AGAIN, WE WOULD NOT HAVE TO COME BACK TO THIS AGAIN NEXT YEAR. THIS IS A LONG TERM CONTRACT WITH THE DENTAL ALSO HAS THE SAME MATCH RATE OR MATCH RATE FOR DENTAL. LIKE IF YOU DID IT FOR MEDICAL YOU DID IT FOR DENTAL MATCH RATE I'M SORRY. DISRUPTION. OH DISRUPTION. YES. SO WE DID THAT.IT CAME IN ABOUT 70%. 70% FOR DENTAL IS ACTUALLY A STRONG NUMBER. WHEN WE RUN OUR ANALYZES YOU WANT IT TO BE BETWEEN 70 TO 80% MEDICAL. YOU WANT TO BE OVER 90%. SO YES, WE DID RUN THAT REPORT AS WELL. A FEW OTHER THINGS. THESE ARE ALL OF THE OTHER RENEWING POLICIES IN PLACE. SO LIFE DISABILITY WITH OAKS. THAT IS A RATE GUARANTEE PERIOD. THE VOLUNTARY VISION PROGRAM WITH SUPERIOR VISIONS AND THE RATE GUARANTEE, THE EMPLOYEE ASSISTANCE PROGRAM WITH ALLIANCE WORK PARTNERS. THE CITY ACCEPTED A RATE PASS GUARANTEE FOR ONE YEAR. THERE'S ALSO SPENDING ACCOUNTS IN PLACE LIKE HEALTH SAVINGS ACCOUNT, FLEXIBLE SPENDING ACCOUNT, COBRA. THAT WAS ALL IN RATE GUARANTEE PERIOD. AND THEN THE CITY DOES OFFER SOME VOLUNTARY WORK SITE PRODUCTS THAT COMES OUT OF THE EMPLOYEE'S PAYCHECK 100%. WE'RE GOING TO BE IMPLEMENTING A NEW HOSPITAL INDEMNITY PLAN THIS YEAR, WHICH IS GOING TO BE PAYING FOR EMPLOYEES IF THEY ARE CONFINED TO THE HOSPITAL. SO THERE'S A LUMP SUM PAYMENT THAT WILL BE PAID OUT TO EMPLOYEES, THAT WILL BE A NEW PRODUCT THAT'S GOING TO BE OFFERED THIS NEXT YEAR ON A VOLUNTARY BASIS.
AND THAT IS ALL I HAVE. I KNOW THAT WAS A LOT. BE HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE. THE EAP ONLY OFFERED THREE VISITS, THREE VISITS. SO TODAY UNDER ALLIANCE WORK PARTNERS, THERE'S SIX VISITS TODAY. SO BLUE CROSS BLUE SHIELD DOESN'T HAVE AN EAP. SO CIGNA AGREED TO OFFER THREE OF THEIR OWN. SO NOW MEMBERS WILL HAVE NINE TOTAL COMPARED TO SIX NINE. THAT WAS CONCERNING. THAT WAS A LITTLE LOW, 399. YES MA'AM. YES. THANK YOU. THANK YOU SO MUCH. YOU KNOW, JUST JUST A COUPLE OF THINGS ON THAT WITH THAT RECOMMENDATION TOO. WE DO FEEL LIKE IT'S, YOU KNOW, FROM A FIDUCIARY RESPONSIBILITY, IT'S STILL ENSURES THAT THE EMPLOYEES GET THE COVERAGE THAT THEY WOULD NOT HAVE TO PAY ANY MORE. AND ALSO OBVIOUSLY IT HAS SAVINGS THAT'S BUILT INTO THE BUDGET. BUT WE WILL HAVE TO MOVE PRETTY QUICK ON AWARDING THIS PLAN. AND SO OUR PLAN WOULD BE TO BRING THIS TO YOU ALL TO THE NEXT COUNCIL MEETING. SO I JUST WANT TO MAKE SURE COUNCIL IS AWARE OF IT. IT'S IMPORTANT TO MAKE SURE THAT WE PRESENTED THIS INFORMATION TO YOU ALL. MAKE SURE TO WALK THROUGH IT. SO. I CAN'T REMEMBER. THAT. ALSO INCLUDED CHANGES FOR RETIREES AS WELL. YES. SO EVERYTHING'S BUNDLED TOGETHER UNDER BLUE CROSS BLUE SHIELD. YES. SO THAT WOULD BE A TRANSITION TO CIGNA AS WELL. AND WE'RE GONNA HAVE TO WORK WITH EVERYBODY THROUGH THE PROCESS. WE KNOW THERE'S DISRUPTIONS. WE KNOW THERE'S GOING TO BE PAIN POINTS. BUT OUR OUR HR TEAM AND BENEFITS WERE READY TO GO. AND WE WILL DEFINITELY HAVE TO WORK HAND-IN-HAND WITH THOSE EMPLOYEES TO WORK THROUGH THE TRANSITION. SO THEY'LL BE HERE ON SITE TO HELP THEM THROUGH THIS TRANSITION. YES, YES. AND READY TO ANSWER EMPLOYEES QUESTIONS. YES, MA'AM. SO WE HAVE A DEDICATED ACCOUNT MANAGER. WE'RE ALSO GOING TO TRY AND HAVE CIGNA COME OUT ON SITE AS WELL TO PRESENT THE BENEFITS.
SO THERE'LL BE A COLLABORATIVE EFFORT BETWEEN CIGNA AND HUB. AND HOW DO WE GET THE INFORMATION OUT TO THE RETIREES? I MAY HAVE TO RELY ON HR RIGHT NOW. WE USE EMAIL MAIL AND THEN OF COURSE WE'LL HAVE THEM COME ON SITE IF THEY'RE AVAILABLE. OKAY. THANK YOU. THANK YOU SO
[1.C. Council to receive a presentation on the use of General Fund excess fund balance resources for one-time and CIP expenditures for FY 2026 proposed requests]
MUCH. ALL RIGHT, MAYOR COUNCIL. GOOD AFTERNOON. WE'RE JUST JUMP RIGHT INTO ITEM C ON THE AGENDA.WE WANTED TO BRIEF YOU ALL IN TERMS OF THE REQUEST THAT WE INTEND TO BRING FORWARD TO YOU AT THE NEXT COUNCIL MEETING ON AUGUST 5TH, WITH A REQUEST FOR THE USE OF SOME OF OUR EXCESS FUND BALANCE. IF YOU'LL RECALL FROM OUR DISCUSSION ON JUNE 26TH, WE HAD TALKED ABOUT CERTAIN PROJECTS THAT WE WANTED TO BRING FORWARD, THINGS THAT WE HAD TALKED WITH VARIOUS DEPARTMENTS, AND WE WERE CONFIDENT THAT WE COULD GET GOING ON IMMEDIATELY, STARTING HERE AS SOON AS PASSAGE, REVIEW, AND PASSAGE WOULD OCCUR FOR USE OF THOSE FUNDS. SO WE WANTED TO PROVIDE THAT BRIEFING TO YOU HERE THIS AFTERNOON. IN TERMS OF THAT SPECIFIC LIST OF PROJECTS AND THAT TOTAL AMOUNT THAT WE'RE REQUESTING. GETTING INTO THE SLIDE THAT YOU HAVE HERE. WOULD YOU HAVE IN FRONT IS OUR TOTAL FUND BALANCE REQUEST OF WHAT WE'RE ASKING TO USE A PORTION OF
[01:00:03]
OUR EXCESS FUND BALANCE IN GENERAL FUND THAT IS OVER AND ABOVE OUR 150 DAY MAXIMUM PER OUR UPDATED FUND BALANCE POLICY THAT WE PRESENTED EARLIER THIS YEAR. I JUST WANT TO TOUCH ON A FEW ITEMS, AND DEPENDING ON WHAT SCREEN YOU'RE LOOKING AT. SO I WANT TO START JUST AGAIN TOUCHING ON A FEW ITEMS HERE. THE PARKS CREW AND THE MOWERS. ONE OF THE THINGS THAT WE HAVE BUILT INTO THE BUDGET FOR FISCAL YEAR 26 IS FOR A GOOD PORTION OF THE MOWING PROCESS TO BE BROUGHT IN-HOUSE. THERE WOULD STILL BE SOME THINGS RIGHT OF WAY BELIEVE SERVICE, SERVICE ROADS NEAR HIGHWAYS AND BYWAYS THAT WOULD STILL BE COMPLETED BY THIRD PARTY. BUT THE MAJORITY OF OUR MOWING WOULD BE HANDLED IN-HOUSE. AND SO WHAT YOU SEE HERE FOR THE REQUEST WOULD BE FOR PURCHASE OF TRAILERS, TRUCKS AND THE ACTUAL MOWERS THAT THE PARKS CREW WOULD BE USING TO OPERATE AND BE ABLE TO GO OUT TO OUR, YOU KNOW, OUR PARKS AND AREAS TO COMPLETE THE MOWING PROJECT. JUST BELOW THOSE TWO LINES, YOU SEE A LINE FOR IT SECURITY APPLIANCE THAT IS A PHYSICAL APPLIANCE THAT WOULD BE IN USE NOT ONLY FOR THE ENTIRE CITY, BUT CERTAINLY WOULD ASSIST IN POLICE OPERATIONS AS WELL. SO WHAT IT DOES IS IT SCANS NETWORK TRAFFIC THAT IS CHECKING FOR DIFFERENT THINGS. THAT COULD BE CYBERSECURITY ISSUES TO US. SO ANY HACKER PATTERNS, ANY VIRUSES, ANY MALWARE THAT CAN BE OUT, IT HELPS BETTER IDENTIFY THOSE THOSE POINTS SO THAT WE COULD BE IN BETTER POSITION THAN WE ALREADY ARE. JUST AGAIN, TRYING TO IMPROVE ON THE SECURITY OF OUR NETWORK. ALSO TOWARD THE TOP OF THE LIST, CERTAINLY THINGS THAT ARE IN RELATION TO IT, REPLACEMENT THINGS THAT THAT THAT WE WOULD LIKE TO GET GOING ON, ORDERING AS SOON AS POSSIBLE THAT ASSIST NOT ONLY IN OUR OVERALL OPERATIONS AS IT RELATES TO SPECIFIC DEVICES, EITHER FOR DESKTOP OR MOBILE UNITS, FOR OUR POLICE AND FIRE UNITS, BUT ALSO AS IT RELATES TO THE TRAFFIC OPERATIONS, TO REALLY MAKE SURE THAT WE'RE MOVING IN THE RIGHT DIRECTION FOR UPDATING THE DIFFERENT SOFTWARE FOR THOSE RESPECTIVE AREAS AND DEPARTMENTS. AGAIN, WHEN LOOKING AT THE ENTIRETY OF THIS LIST, AGAIN, THAT WE PLANNED TO PRESENT FOR YOU VIA RESOLUTION AT THE AUGUST 5TH MEETING, THE TOTAL AMOUNT OF THIS FUND BALANCE REQUEST IS A LITTLE MORE THAN $1.2 MILLION. SO $1,239,986. IF I CAN ADVANCE TO THE TO THE NEXT SLIDE, JUST WANT TO SHOW YOU BEFORE WE MOVE ON. WELL, MAYBE THIS IS IT. YES, I CAN CIRCLE. YEAH, YEAH. MAYOR IF YOU OKAY. JUST A QUICK QUESTION. YEAH. WE'RE GOING TO INCREASE.WE'RE GOING TO TAKE ON A LOT MORE MOWING RESPONSIBILITIES IN-HOUSE. SO THIS IS ABOUT EQUIPMENT. ARE WE GOING TO GET TO A PLACE WHERE WE FIND OUT IF WE NEED TO INCREASE STAFF TO ACCOMMODATE THE ADDITIONAL LOAD. SO THE SO I'LL ANSWER THAT. SO WE'RE ASSUMING A CREW OF SIX FULL TIME EMPLOYEES. SO THAT IS BUILT INTO THE BUDGET. SO THE ADDITION OF THOSE SIX FULL TIME EMPLOYEES, THIS IS THE EQUIPMENT IN ORDER TO EQUIP THEM TO DO THAT JOB. BUT WITH THE ADDITION OF THE SIX FULL TIME EQUIVALENTS, THE CONTRACTUAL AMOUNT DECREASES, IF THAT MAKES SENSE. SO TAKING ONE FOR THE OTHER AND THAT'S WHERE THE SAVINGS COMES IN. SO AGAIN, PART OF OUR PART OF OUR DISCUSSION IN TERMS OF AREAS TO HELP BALANCE THE BUDGET WAS SOME INFORMATION THAT BART AND HIS TEAM CAME BACK. AND SO WE'RE LOOKING AT OVERALL THAT IT WOULD BE A SAVINGS TO THE CITY IN TERMS OF THE IN-HOUSE GROUP VERSUS WHAT WAS PROJECTED IN TERMS OF THE OPERATIONAL INCREASE EXPENDITURE WISE, BY JUST CONTINUING WITH THIRD PARTY FOR 100% OF THE
[01:05:03]
PROCESS. THANK YOU. SO. OH, YES. I'M SORRY. I WANT TO BE SURE. I'M CLEAR. SIX FTES IS ALREADY INCORPORATED IN THE FISCAL YEAR 26 BUDGET. YES, MA'AM. BEING PROPOSED HERE. YES, MA'AM. THIS IS THE TOOLS THEY'LL NEED WHEN THEY COME ON BOARD. CORRECT. SO THIS IS THE EQUIPMENT PROCESS SO THAT IT ALLOWS US TO GET GOING AS SOON AS POSSIBLE TO ORDER THE EQUIPMENT SO THAT ONCE, ONCE THEY'RE STAFFED UP, THEY'LL HAVE THE EQUIPMENT TO BE ABLE TO OPERATE. YES, MA'AM. OKAY. WE ALREADY HAVE EXISTING EQUIPMENT. WE DO NOT HAVE ONE MORE. YEAH. IN ORDER TO MAKE THIS HAPPEN, WE NEED TO. WE NEED THAT EQUIPMENT. YES. SO WILL THIS ALSO BRING DOWN ANY OVERTIME THAT IS BEING USED NOW? BECAUSE. OR THIS WON'T IMPACT IT BECAUSE WE'RE NOW SERVICING HAVING A THIRD PARTY.CORRECT. SO THE THIRD PARTY SAVINGS WILL SAVE ON. BUT YES. SO HERE IN THE SUBSEQUENT SLIDE JUST WANTED TO SHOW SPECIFICALLY FOR THE 1.2 MILLION HOW THAT FACTORED IN TO THE GENERAL FUND BALANCE AND IMPACT FOR FISCAL YEAR 2025. SO WHAT WE'RE PROPOSING IS FOR A TRANSFER OF THE AFOREMENTIONED $1.2 MILLION THAT WILL GO INTO ONE TIME OR ONE TIME PROJECT FUND. WHAT THAT WOULD DO IS THAT WOULD BRING OUR TOTAL EXPENDITURE OUT OF GENERAL FUND FOR FISCAL YEAR 25 TO JUST NORTH OF $45 MILLION. WHEN WE LOOK AT THE IMPACT IN TERMS OF EXPENDITURE OVER REVENUE, THIS ADDITIONAL 1.2, WHAT YOU SEE HERE IN THE 1.3, THIS WAS PART OF JENNIFER'S BUDGET AMENDMENT REQUEST THAT THIS COUNCIL HAD SUPPORTED AND PASSED. SO THE OVERALL IMPACT THAT WE'RE PROJECTING FOR FISCAL YEAR 25 IS THAT THE GENERAL FUND BALANCE WOULD BE REDUCED AT THE END OF THE YEAR BY THE AMOUNT OF $2.6 MILLION. WHAT YOU'LL SEE AT THE BOTTOM OF THIS SLIDE IS THAT WE WANT TO SHOW THAT EVEN WITH THE REQUEST THAT WE'RE MAKING, AND HOPEFULLY WITH YOUR SUPPORT AND PASSAGE, THAT THE EXCESS IS STILL ABOVE OUR MAXIMUM 150 DAY THRESHOLD THAT WE HAD IN OUR FUND BALANCE POLICY THAT WE BROUGHT TO YOU ALL EARLIER IN THIS FISCAL YEAR. SO EVEN WITH THE 1.2, WE'RE STILL PROJECTING THAT WE'LL BE A LITTLE MORE THAN $2.4 MILLION IN EXCESS OF THAT $150,000 MAXIMUM LEVEL. SO THERE THERE'S STILL ROOM FOR OTHER PROJECTS AND DISCUSSIONS ON OTHER EXPENDITURE IDEAS OR POSSIBILITIES BEYOND WHAT WE'RE PROPOSING HERE. BUT AGAIN, JUST TO WANTED TO AT LEAST HAVE THIS SLIDE FOR TRANSPARENCY PURPOSES, TO SHOW THAT EVEN WITH OUR REQUESTS, WE'RE STILL ABOVE WHAT OUR MAXIMUM RESERVE STANDARD THAT WE PRESENTED IN OUR FUND BALANCE POLICY. SO I WANT TO GO BACK TO THE MODELING PIECE FOR JUST A SECOND. THIS DOESN'T STOP OUR CONTRACTS THAT WE CURRENTLY HAVE WITH THE FOLKS THAT MO ACTUALLY MOW THE HIGHWAY. I 20 AND 67 THAT WILL CONTINUE. THAT WILL CONTINUE. YES, A THIRD PARTY. THIRD PARTY. YES, YES.
AND COUNCIL. ANY QUESTIONS ON THIS SLIDE OR THE PREVIOUS SLIDE? AGAIN, THAT LIST FROM THIS SLIDE WILL BE ITEMIZED IN A RESOLUTION. EXCUSE ME A RESOLUTION REQUEST THAT YOU'LL SEE IN THE AUGUST 5TH MEETING. YES, MA'AM. SO THE STREET MAINTENANCE ON THE THAT IS TIED TO THE PRESENTATION GIVEN BY MISS MUHAMMAD. CORRECT. BECAUSE WE ALREADY HAVE A LINE IN THERE FOR STREET MAINTENANCE. SO WE HAD A BRIEFING THAT IT'S NOT ENOUGH TO COVER ALL OF THE NEEDS THAT WE HAVE FOR OUR STREET. SO THIS IS 200,000 GOING IN ADDITION TO WHAT HAS ALREADY BEEN BUDGETED. THAT IS CORRECT. OKAY. AND THAT'S JUST A DROP IN THE BUCKET TO START THAT PROCESS. YES. BUT CERTAINLY LOOKING AT THE FACT THAT TO YOUR POINT, WE'RE WE'RE TRYING TO ADDRESS WHERE WE CAN IN TERMS OF AN INCREASE ABOVE WHAT IT IS FACTORED INTO THE TO THE 26 BUDGET. SO ARE WE LOOKING AHEAD AT HOW TO PREVENT FROM GOING INTO THE FUND BALANCE FOR FUTURE BUDGETS? ARE WE LOOKING AHEAD ON HOW TO SUSTAIN THIS AND ANY OTHER ALTERNATIVE FUNDING SOLUTIONS ON HOW TO PREVENT US FROM GOING TO THE FUND BALANCE IN FUTURE? I UNDERSTAND WE HAVE
[01:10:04]
TO DO IT NOW BECAUSE THESE ARE THINGS THAT HAVE JUST COME UP. BUT MOVING FORWARD, WILL WE CONTINUE WITH THIS? IS THIS SOMETHING THAT WE CAN SUSTAIN THAT THAT IS SOMETHING THAT WE'RE LOOKING AT AND GOING TO THIS NEXT FISCAL YEAR? YOU KNOW, ONE EXAMPLE, NOT NOT SAYING WE'RE GOING TO GO WITH THIS, BUT WE DID FOR A BRIEF YELLOW ON A POTENTIAL STREET MAINTENANCE FEE. BUT THOSE ARE THE TYPE OF THINGS WE NEED TO START LOOKING AT OVER THIS NEXT SIX MONTHS TO BRING TO YOU ALL WE DO NEED TO FIND. WE RECOGNIZE JUST LONG TERM. WE REALLY DO NEED TO FIND OTHER ALTERNATIVE SOURCES TO KIND OF HELP US PROVIDE SERVICES. YOU KNOW, WE ONLY HAVE A LIMITED GENERAL FUND ABILITY THERE. EVEN BACK TO SOME OF THE THINGS WE TALKED ABOUT PROPOSING FOR THIS YEAR'S BUDGET TO BALANCE IT, YOU KNOW, JUST TRYING TO FIND OTHER SOURCES.BUT YES, THAT IS SOMETHING WE ARE LOOKING AT AGAIN, YOU KNOW, DEFINITELY LOOKING INTO THE STREET MAINTENANCE FEE OPTION, BUT JUST LOOKING AT OPTIONS IN GENERAL. OKAY. SO KEEP US UPDATED. LOOKING FORWARD TO AND I'M JUST GOING TO HIGHLIGHT AGAIN MANY OF THESE THINGS ARE ONE TIME, YOU KNOW WE'RE NOT GOING TO BUY THE MOWER OR THE TRUCK AGAIN FOR A FEW YEARS. YOU KNOW WE'RE NOT GOING TO DIGITIZE PAPER, YOU KNOW, AGAIN OR YOU KNOW THOSE KIND OF THINGS. SO THESE MANY OF THESE THINGS REALLY ARE JUST. YEAH. AND IF I COULD PIGGYBACK OFF OF BOTH OF THEIR POINTS IS DEFINITELY LIKE A GLOBAL REALLY A HOLISTIC APPROACH, SPECIFICALLY ON THE REVENUE SIDE IN TERMS OF STARTING AT THE TOP WITH THE CITY ADMINISTRATION AND THEN MOVING DOWN. EACH DEPARTMENT DIRECTOR HAS BEEN, YOU KNOW, VERY GOOD IN TERMS OF REALLY BEING PROACTIVE IN TRYING TO IDENTIFY ALTERNATIVE SOURCES, WHETHER THEY BE IN GRANTS OR, OR, OR, OR OTHER OPPORTUNITIES TO REALLY TRY TO MAXIMIZE. AND THEN, YOU KNOW, WITHIN THE PROCESS AND THE PROJECTS THEMSELVES, ARE THERE OPPORTUNITIES TO GET LEANER WITH WITH THE PROCESS AS WELL? SO WE'RE TRYING TO MAKE SURE THAT AS MUCH AS POSSIBLE, WE'LL BE GOOD STEWARDS OF THE FUNDS AND THE FINANCES THAT WE HAVE. BUT ALSO IT IS ALSO IMPORTANT THIS, THIS, THIS BOTTOM PORTION OF THIS SLIDE HERE, MISS GOODEN, IS KIND OF KEEPING ALONG WITH BEING GOOD STEWARDS, IS THAT WE WANT TO MAKE SURE THAT NOT ONLY ARE WE TARGETING POTENTIAL THINGS THAT MAKE SENSE IN TERMS OF THE USE OF THE EXCESS BALANCE, BUT THERE ARE THINGS THAT MOVING FORWARD ARE AS MUCH AS POSSIBLE THE, THE, THE, THE TRUE ONE TIME PROJECTS, BUT BUT ALSO MAKING SURE THAT WE'RE GOOD STEWARDS OF THE FUNDS THIS WAY AS WELL. THANK YOU SIR. YES, MA'AM. ANY OTHER. MR. COMBS, COULD YOU GO BACK TO THE PREVIOUS PROJECTS? SO? SO I WOULD IMAGINE IT'S PROBABLY A MYRIAD OF PROJECTS THAT PROPOSED. I MEAN, I SEE TRAFFIC, STREETS, PARKS, IT, YOU KNOW, THERE'S NOTHING THERE FOR THE POLICE OR THE LIBRARY. SO I IMAGINE THERE ARE A LOT OF DIFFERENT. HOW DID WE GET DOWN TO THIS PARTICULAR LIST? AND, YOU KNOW, WHY WERE THESE PRIORITIZED OTHER OVER OTHER POTENTIAL ONE TIME PROJECTS? SO PART OF IT WAS PRIORITIZED BASED ON WHAT THE WHAT THE REQUEST WAS ITSELF IN TERMS OF OUR, FIRST OF ALL, OUR ABILITY TO, TO, TO, TO, I GUESS, INITIATE AND GET GOING ON THE PROJECTS AS SOON AS POSSIBLE. WITH RESPECT TO THAT, WE COULD OPEN SPACE. YES. SO PART OF IT WAS, WAS THE TIMING AND REALLY WHAT, WHAT THINGS THAT WE COULD GET GOING ON THAT WE ARE ACTUALLY. SO WE'RE MAKING THE REQUEST FOR THE MONEY. BUT WE DIDN'T WE DIDN'T HAVE TO COME BACK TO YOU SIX MONTHS FROM NOW ON, PROJECTS THAT HADN'T STARTED AND KIND OF GETTING TO THE WHYS, THOUGH. SO WE WANTED TO BE VERY STRATEGIC IN TERMS OF THOSE THINGS THAT WE KNEW THAT WE COULD KICK OFF WITH AS SOON AS POSSIBLE. SO THAT WAS THE PRIMARY FACTOR. AND SO THESE WERE SELECTED FROM A LONGER LIST OF PROPOSED PROJECTS. YES, YES.
THANK YOU. YES, SIR. ANY OTHER QUESTIONS BEFORE MOVING ON? OKAY. SO JUST TO GO OVER NEXT STEPS JUST OVERALL. SO NOT ONLY FOR THIS BUT JUST OVERALL IN OUR PROCESS HERE, AS JENNIFER HAD ALREADY INDICATED EARLIER IN OUR DISCUSSION, IT'S OUR PLAN TO HAVE THE OPEN GOV LINK. SO THAT COULD BE CONSUMED BY OUR RESIDENTS, GENERAL PUBLIC BUSINESS COMMUNITY. SO WE PLAN TO HAVE THAT AVAILABLE HERE THIS WEEK. ALSO AT OUR AUGUST 5TH COUNCIL MEETING. IT'S OUR INTENTION TO PUT FORTH FOR CONSIDERATION THE RESOLUTIONS RELATED TO THE MEDICAL AND
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DENTAL INSURANCE PRESENTATION THAT YOU ALL HEARD. AS WELL AS THIS REQUEST TO USE SOME OF THE EXCESS FUNDS IN OUR GENERAL FUND BALANCE. AND THEN, OF COURSE, GETTING DOWN AND DIRTY INTO MORE OF THE DETAILS, IF YOU WILL, OF OUR BALANCED BUDGET AND WHAT COMPRISES IT. THAT IS OUR PLAN TO BRING THAT FORTH IN OUR BUDGET WORKSHOP ON AUGUST 12TH, AND AGAIN JUST AS PART OF THAT BUDGET WORKSHOP, AGAIN, AS A REMINDER THAT WE'LL HAVE AS ANOTHER ITEM ON THE AGENDA, THE REQUEST FOR CALLING FOR OUR BOND RECOMMENDATIONS. SO WITH THAT, ARE THERE ANY OTHER QUESTIONS THAT WE CAN GET INTO THE JOHNSONGRASS ON AUGUST THE 12TH? YEAH, THAT'S WHAT I WAS GETTING READY TO SAY. SO GIVE ME MY MARCHING ORDERS. ARE WE SAVING OUR REAL QUESTIONS TO AUGUST 12TH OR. AUGUST 5TH? ARE WE DISCUSSING BUDGET THEN AS WELL? NO. SO THE DETAILED BUDGET DISCUSSION WILL BE AUGUST 12TH. SO IN LIEU OF THAT TIMELINE, SIMILAR TO WHAT WE DID LAST YEAR, MISS GOODEN AND MEMBERS, MAYOR AND MEMBERS OF COUNCIL, JENNIFER AND I ONCE AGAIN WANTED TO MAKE SURE THAT WE MADE OURSELVES AVAILABLE FOR ANY MEETINGS AND ONE ON ONE POTENTIAL POSSIBILITIES THAT YOU ALL MAY WANT TO HAVE WITH US IN ADVANCE. WE WANT TO MAKE SURE THAT NOT ONLY YOUR QUESTIONS ARE BEING ANSWERED, BUT IF THERE'S AN OPPORTUNITY FOR US TO HAVE DIALOG IN ADVANCE OF AUGUST 12TH, WE'RE CERTAINLY AVAILABLE TO DO SO. SO WE CAN COME TO YOU.WE CAN MEET, WE HAVE YOU. WE WOULD CERTAINLY LOVE TO HOST YOU HERE AT CITY HALL. YOU KNOW, WHATEVER IS YOUR PREFERENCE, WE'RE CERTAINLY AT YOUR PLEASURE TO TRY TO ANSWER ANY INQUIRIES YOU HAVE. I THOUGHT THAT THAT WENT VERY WELL LAST YEAR, AND SO WE CERTAINLY WANTED TO OPEN THAT UP AS A POSSIBILITY. CERTAINLY, YOU KNOW, YOUR PREFERENCE AND PREROGATIVE IF YOU WANT TO HAVE THAT MEETING, BUT JUST KNOW THAT WE'RE READY AND WILLING TO HAVE THOSE AGAIN THIS YEAR. IF YOU SEE IT AS A BENEFIT IN ADVANCE OF THE 12TH, WHAT'S THE DEADLINE OF ADOPTING IT? IT NEEDS TO BE ADOPTED BY THE LAST MEETING IN SEPTEMBER AT THE VERY BEGINNING. OH, SORRY. ALL GO BACK TO THE SCREEN. I REMEMBER THAT DATE IS SO THE WEDNESDAY AFTER THE SECOND MEETING IN SEPTEMBER IS THE DEADLINE. SO WE HAVE THE SEPTEMBER 16TH IS ADOPTION. AND YOU KNOW, IF YOU'RE WRITING DOWN YOUR QUESTIONS AS YOU SEE THEM, I MEAN, FEEL FREE TO PUT THAT IN AN EMAIL AND SEND IT TO US SO WE'RE PREPARED AND WE'LL MAKE SURE THAT WE ADDRESS YOUR QUESTIONS SPECIFICALLY IF YOU WANT TO DO IT THAT WAY, THAT WOULD BE FINE, OKAY. BECAUSE I LIKE THAT OPTION JUST TO MAKE YOU AWARE. SO THAT WAY WHEN WE DO HAVE OUR DISCUSSION IN PUBLIC, YOU'RE PREPARED TO ANSWER THOSE QUESTIONS. I JUST DIDN'T WANT THE QUESTIONS BEING ANSWERED IN EMAIL AND PREVENTING THE PUBLIC FROM HEARING THE CONVERSATION. SURE, I KNOW THAT WE HAD A NUMBER OF CITIZENS TO REQUEST ADDITIONAL MEETINGS, BUT WE'VE BEEN HAVING A LOT OF MEETINGS ABOUT THE BUDGET THIS SEASON, SO I JUST WANT TO KEEP THAT OPTION OUT THERE JUST IN CASE, IF NEEDED, TO HAVE AN ADDITIONAL MEETING TO DISCUSS WHATEVER THAT MAY BE DISCOVERED ON AUGUST 12TH. AND I KNOW WE'VE HAD OUR UPS AND DOWNS THIS YEAR, BUT I THINK I'M SPEAKING FOR EVERYONE WHEN WE SAY WE APPRECIATE ALL THE HARD WORK THAT THE WHOLE FINANCE DEPARTMENT AND EVERYBODY ELSE IS INVOLVED IN THIS IS GOING THROUGH TO KEEP US AS INFORMED AS WE CAN BE. A LOT OF INFORMATION, AND I THINK BETWEEN NOW AND WHEN WE'RE ACTUALLY VOTING ON THIS, I THINK WE'RE CONSIDERED TO BE FULLY INFORMED. SO THANK YOU SO MUCH FOR THE HARD WORK, SIR. APPRECIATE THAT.
AND THE QR CODES. AND THAT'S I MEAN, REALLY, I CAN'T TELL YOU HOW MUCH I APPRECIATE THAT BECAUSE FOR US, PEOPLE ARE ASKING ABOUT THE BUDGET AND SOMETIMES IT'S VERY DIFFICULT TO EXPLAIN. AND I TOOK A PEEK AT IT AND IT LOOKS GREAT. IT'S VERY USER FRIENDLY. AND SO YEAH, I DO REALLY APPRECIATE THAT PIECE. AND I KNOW WE TALKED A LOT ABOUT TRANSPARENCY, AND YOU SHOULD PUT YOUR PHONE NUMBERS UP ON THE WAS THAT AND I RECOGNIZE THE LIMITATIONS OF THAT BECAUSE YOU KNOW SOMETIMES PEOPLE WANT TO KNOW WELL, YOU KNOW, THEY BOUGHT PINS. HOW MANY PINS HAVE THEY BOUGHT, HOW MUCH EACH PIN. BUT IT LOOKS REALLY GOOD. THANK YOU. YEAH. NO, IT DEFINITELY FROM NOT
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ONLY THIS BODY, BUT CERTAINLY THE RESIDENTS OF THE CITY. YOU KNOW, WE HEAR YOU, WE'VE HEARD YOU. AND I THINK THIS IS THE NEXT STEP IN A REALLY, REALLY BIG STEP. MR. CLEMENTS, IN TERMS OF THAT TRANSPARENCY PIECE. AND CERTAINLY, YOU KNOW, I WOULD BE REMISS IF I DID NOT PUBLICLY ACKNOWLEDGE THE WORK THAT JENNIFER SPECIFICALLY HAS PUT IN FOR OUR INCORPORATION. AND NOW WE'RE ON THE DOORSTEP FOR IMPLEMENTATION OF SOMETHING THAT HAD BEEN IN DISCUSSION FOR QUITE SOME TIME. AND NOW WE'RE, YOU KNOW, AGAIN, WE'RE RIGHT AT THE DOORSTEP OF INTRODUCING TO THE PUBLIC. AND I THINK THIS IS A IT'S A BIG THING. AND SO I JUST WANT TO PUBLICLY ACKNOWLEDGE HER. SHE'S REALLY WORKED HER TAIL OFF WITH GETTING THINGS READY. AND JUST JUST ANOTHER TESTIMONY TO HER SERVANT LEADERSHIP. SO ANYTHING ELSE THAT'S GOING TO BE IT. THANK YOU, THANK YOU, THANK YOU FOR THE PRESENTATION. AND WE ARE GOING TO END OF OUR BUSINESS FOR THIS EVENING. WE'LL ADJOURN THIS MEETING AT* This transcript was compiled from uncorrected Closed Captioning.