Jun 30, 2026 City Council Strategic Planning and Priorities Workshop

[00:00:10]

ORDER A MEETING FOR TUESDAY, JUNE 30TH, 2026. JUST. HOUSEKEEPING. MR. KOONTZ WILL BE HERE VIA. ZOOM OUT WITH TEAM TEAMS. AND MR. VERACRUZ WILL NOT BE ABLE TO MAKE IT HERE TODAY. MR. DAVIS IS ON HIS WAY. SO SINCE WE HAVE A QUORUM, WE'RE GOING TO GO AHEAD AND

[1. CITIZENS' INPUT]

[2.A. Receive a presentation, discuss, and deliberate funding strategies for Hotel Occupancy Tax (HOT) funds, Duncanville Community and Economic Development Corporation (DCEDC) programs and initiatives, the Capital Improvement Plan, one-time funding opportunities, revenue enhancement strategies, cost reduction measures, and potential operational changes for the FY 2026-27 financial outlook. ]

AND IT'S GOING TO BE MARK RAUSCHER WHO'S GOING TO LEAD THAT. AND HE'LL ALSO INTRODUCE OUR GUEST. I'M SORRY. REAL QUICK BEFORE WE ACTUALLY START DOING THAT. HELLO EVERYONE.

JENNIFER THANK YOU ALL FOR ALL BEING HERE. I KNOW IT'S AN EARLY START TO THIS AND THIS WAS WORKING. WHEN I TESTED IT EARLIER. OKAY, THERE WE GO. SO AS MR. ABERNATHY'S ALREADY COVERED, THIS IS KIND OF THE TOPICS HE COVERED, ALL THE TOPICS THAT WE'RE GOING TO TALK ABOUT TODAY. BUT FIRST, BEFORE WE GET TO THE HOT TOPIC, I JUST WANT TO GO OVER THE CALENDAR AND THE PLANNING PROCESS HERE. SO OBVIOUSLY TODAY IS JUNE 30TH. SO THIS IS OUR PRELIMINARY

[00:05:02]

WE WILL SUBMIT TO YOU A PROPOSED BUDGET BY JULY 31ST AS REQUIRED BY THE CHARTER. SO IMPORTANT DATES FOLDED HERE FOR YOU TO MAKE SURE THEY ARE ON YOUR CALENDAR. WE'RE GOING TO DO AN ALL DAY BUDGET WORKSHOP. IT'LL BE ON THURSDAY, AUGUST THE 6TH. SO THAT WILL BE AGAIN AN ALL DAY WORKSHOP. THERE WILL BE ABLE TO GET INTO THE DETAILS OF EVERYTHING PLACE TO BE DETERMINED. AUGUST 10TH, WHICH IS A MONDAY. FOLLOWING THAT, WE WILL HAVE A FOLLOW UP ON THE BUDGET OF WHAT YOU HEARD ON THE AUGUST 6TH, AND THAT WILL ALSO DO THE RECORD VOTE ON THE TAX RATE THAT DAY, WHICH IS WHAT WE NEED WHEN WE HAVE TO DO ALL THE PUBLICATIONS. AND THEN LASTLY, THE TWO NORMAL MEETINGS IN SEPTEMBER WILL HAVE THE PUBLIC HEARING ON THE BUDGET. AND THEN THE LAST MEETING WE'LL HAVE IT ON THE TAX RATE. SO JUST WANT TO MAKE SURE AT LEAST THE SIXTH AND THE 10TH DEFINITELY ARE ON YOUR CALENDAR. OKAY. AS MR. ABERNATHY HAS SAID THAT WE HAVE JUSTIN BREGEL FROM THE TEXAS HOTEL LOBBY HOTEL AND LODGING ASSOCIATION, AS WELL AS MR. RAUSCHER. THEY ARE GOING TO TALK ABOUT HOT FUNDS AND STRATEGIC USE. SO THANK YOU. GO AHEAD OF MYSELF THERE. OKAY. THANK YOU JENNIFER. THANK YOU, MR. CITY MANAGER ABERNATHEY. SO, YES, WITH US TODAY IS MR. JUSTIN BRAZIEL. YEAH, CORRECT. OKAY. HE CAME UP FROM AUSTIN TODAY TO SPEND PART OF HIS DAY WITH US TO, TO HELP PROVIDE BASICALLY AN OVERVIEW OF THE USE OF HOT FUNDS IN TEXAS. BECAUSE, YOU KNOW, AS JENNIFER SAID, WE ARE LOOKING TO BE A LITTLE BIT MORE STRATEGIC IN HOW WE UTILIZE THAT FUNDING SOURCE HERE AT THE CITY OF DUNCANVILLE. AND SO WITH THAT, I'LL LET I'LL LET JUSTIN GET UP AND KIND OF GIVE YOU A LITTLE BIT OF AN OVERVIEW. THANKS, MARK. HI, EVERYBODY. IT'S A REAL PLEASURE TO BE HERE. AS MARK MENTIONED, MY NAME IS JUSTIN BREGEL. I'M GENERAL COUNSEL FOR THE TEXAS HOTEL AND LODGING ASSOCIATION. IT'S A PLEASURE TO WORK WITH DUNCANVILLE. IT'S BEEN A LITTLE BIT SINCE I'VE BEEN IN DUNCANVILLE, BUT WE'VE BEEN WORKING WITH YOUR CITY STAFF ABOUT HOTEL TAXES FOR THE LAST SIX MONTHS. MAYBE A LITTLE LESS THAN THAT. SO LET ME JUST GIVE YOU A BRIEF OVERVIEW ON HOW STATE LAW ADDRESSES MUNICIPAL HOTEL OCCUPANCY TAXES. THIS SHOULD GIVE YOU AN IDEA FOR AS YOU GO THROUGH THE BUDGET MAKING PROCESS, WHAT STATE LAW ALLOWS AND DOESN'T ALLOW FOR USE OF THOSE FUNDS. I'LL STICK AROUND AS LONG AS YOU ALL HAVE QUESTIONS. AND THEN I'LL ALSO SAY, TOO, WE'RE AT YOUR DISPOSAL TO ASSIST YOU WITH ANY OF YOUR QUESTIONS ABOUT HOTEL OCCUPANCY, TAXES, HOTEL OPERATIONS IN GENERAL. WE DO A LOT OF THESE HOTEL TAX SEMINARS ACROSS THE STATE OF TEXAS USUALLY DO 2 OR 3 OF THESE A WEEK, PARTICULARLY THIS TIME OF YEAR, SUMMERTIME. AS YOU ALL ARE STARTING TO THINK ABOUT BUDGETS, I SAY YOU ALL REALLY BROADLY, ALL THE CITIES IN TEXAS AND COUNTIES TOO, AS YOU START TO SET BUDGETS AND, AND WORK ON THESE AGENDAS, WE'RE REAL BUSY AND ON THE ROAD DOING A LOT OF THESE SEMINARS, AND WE'RE GLAD TO DO IT. AND WE'RE ALWAYS HAPPY TO ANSWER ANY OF THE QUESTIONS YOU MAY HAVE. SO LET ME JUST GIVE YOU JUST A BRIEF OVERVIEW OF HOT FUNDS, WHAT'S ALLOWED, WHAT'S NOT ALLOWED. AND THEN LIKE I SAID, I'LL STICK AROUND FOR ANY QUESTIONS. SO HOTEL TAXES AND TAXES, THE MUNICIPAL HOTEL TAXES IN TEXAS WERE THEY DATE BACK TO THE 1960S. SINCE THE 1960S, AFTER THE CITY OF DALLAS FIRST GOT AUTHORITY TO DO A HOTEL TAX, EVERY CITY IN TEXAS WAS GIVEN AUTHORITY TO IMPOSE UP TO A 7% MUNICIPAL HOTEL OCCUPANCY TAX. THAT HOTEL TAX REVENUE, THOUGH UNLIKE YOUR OTHER TAX REVENUE SOURCES LIKE PROPERTY TAX REVENUE OR YOUR SALES TAX REVENUES, IS TREATED DIFFERENTLY IN THAT STATE LAW DEDICATES THAT TAX. EVERY DOLLAR OF REVENUE THAT THE CITY OF DUNCANVILLE COLLECTS, EVERY DOLLAR OF REVENUE THAT EVERY CITY COLLECTS IN THE STATE OF TEXAS MUST COMPLY WITH A TWO PART TEST FOUND IN CHAPTER 351 OF THE TEXAS TAX CODE. THAT TWO PART TEST IS AS FOLLOWS. FIRST, EVERY EXPENDITURE MUST DIRECTLY PROMOTE AND ENHANCE TOURISM, AND THE HOTEL AND CONVENTION INDUSTRY. IT'S A LONG SENTENCE, BUT THINK ABOUT EVERY WORD, EVERY EXPENDITURE. IT'S NOT SOME, IT'S NOT MOST. IT'S EVERY DOLLAR THAT THE CITY COLLECTS MUST COMPLY WITH THIS TWO PART TEST. EVERY EXPENDITURE MUST DIRECTLY PROMOTE TOURISM AND THE HOTEL AND CONVENTION INDUSTRY. THAT WORD DIRECTLY HAS MEANING. ESSENTIALLY, THE WAY WE LOOK AT THIS IS THE DOLLAR OF HOT REVENUE THAT YOU'RE SPENDING MUST HAVE A NEXUS OR A CONNECTION BETWEEN TOURISM AND HOTEL AND CONVENTION ACTIVITY, RIGHT? SO YOU MAY WANT TO UNDERTAKE PROJECTS THAT ARE GOING TO MAKE THE CITY OVERALL A NICER PLACE TO LIVE OR A NICER PLACE TO VISIT. BUT IF IT'S NOT GOING TO BE TIED TO TOURISM AND HOTEL ACTIVITY, IT DOESN'T COMPLY WITH THE FIRST PART OF THE TWO PART TEST. EVERY EXPENDITURE MUST DIRECTLY PROMOTE TOURISM IN THE HOTEL CONVENTION INDUSTRY, A TOURIST IS DEFINED IN THE CODE AS SOMEBODY VISITING FROM ANOTHER CITY OR ANOTHER COUNTY. THAT'S A REALLY BROAD DEFINITION, RIGHT?

[00:10:05]

I ALWAYS REFER TO MYSELF THIS WAY IN THESE SEMINARS. I'M A DOUBLE SCUMBAG. I'M A SCUMBAG LAWYER, AND I'M A SCUMBAG LOBBYIST. BUT IF YOU'RE IN THE HOTEL INDUSTRY, I'M YOURS.

COMEBACK. AND THE REASON WHY WE HAVE THIS TWO PART TEST, I GET CALLED IN TO TWO HEARINGS ALL THE TIME DURING THE LEGISLATIVE SESSION IN ORDER TO COUNT CAPITAL DURING THE SESSION.

CITIES AND COUNTIES HAVE USED POTENTIAL NEW USES OF HOTEL TAX REVENUE. THEY GET PULLED IN MEETINGS, THEY SUGGESTED. WHY ARE HOTELS SO GREEDY? WHY DOES YOUR INDUSTRY ALWAYS ASK US TO HAVE THE STANDARD WHERE EVERY DOLLAR THAT'S SPENT DIRECTLY PROMOTE TOURISM IN THE HOTEL AND CONVENTION INDUSTRY? AND THE ANSWER TO THAT QUESTION HAS TO DO WITH TAX RATES. HOTEL TAX RATES IN TEXAS ARE HIGH. WE PRIDE OURSELVES ON BEING A LOW TAX STATE. MAY NOT BE THE CASE, BUT CERTAINLY WHEN IT COMES TO HOTEL TAXES, THAT'S NOT THE CASE. WE HAVE A STATE 6% HOTEL TAX, A 7% MUNICIPAL HOTEL TAX. SOME OF OUR CITIES AND COUNTIES LEVY A LITTLE BIT MORE ON TOP OF THAT, TO BUILD THINGS LIKE STADIUMS. ON AVERAGE, HOT RATES ARE 13% ALL COMBINED. BUT IN OUR BIG CITIES, THEY'RE AS HIGH AS 17, 17.5%. THAT'S A HIGH TAX RATE. IT MAY SURPRISE YOU TO KNOW THAT IN MANY OF THESE CASES, IT WAS OUR INDUSTRY THAT LOBBIED THE LEGISLATURE TO ALLOW THE CITIES TO INCREASE THE HOTEL TAX. OUR INDUSTRY. WE ASKED FOR THE HOTEL TAX. IN MANY CASES. THE TRADE OFF HERE IS THAT THESE DOLLARS OF LOCAL HOT THAT YOU'RE COLLECTING ARE AN ECONOMIC DEVELOPMENT TOOL. THIS IS AN ECONOMIC DEVELOPMENT TAX. THE HOTEL TAX DIRECTLY PROMOTES TOURISM AND THE HOTEL AND CONVENTION INDUSTRY. THE IDEA BEING IS YOU USE THESE HOT DOLLARS FOR EVENTS AND ACTIVITIES AND PROJECTS THAT BRING MORE VISITORS, MORE OVERNIGHT VISITORS TO YOUR CITY. YOU'RE GOING TO BENEFIT OVERALL ECONOMICALLY FROM THAT ACTIVITY.

SO THAT'S WHY WE HAVE THIS TWO PART TEST. EVERY EXPENDITURE MUST READILY PROMOTE TOURISM AND HOTEL AND CONVENTION INDUSTRY. YOU'VE HEARD THIS BOILED DOWN TO A REALLY SIMPLE PHRASE. I KNOW YOU'VE HEARD THIS PHRASE BEFORE PUTTING HEADS IN BEDS. WE ALL HEARD THAT PHRASE BEFORE. THIS IS WHERE IT COMES FROM. PART ONE OF CHAPTER 351 TEST. OKAY, WE WANT TO SPEND A DOLLAR OF HOT REVENUE. WE WANT TO MAKE SURE THAT WE HAVE SOME SORT OF CONNECTION WITH THE TOURISM, HOTEL AND CONVENTION INDUSTRY. WE'VE GOT TO FIT IT WITHIN ONE OF THE CATEGORIES. I'M JUST GOING TO LIST THESE CATEGORIES HERE FOR YOU. IF YOU WANT TO DIVE INTO ANY OF THEM, HAPPY TO DO IT. BUT I KNOW YOU HAVE A BUSY AGENDA. FIRST CATEGORY IS CONVENTION CENTERS AND VISITOR INFORMATION CENTERS. HOT REVENUE FOR CONVENTION CENTER OWNED OR MANAGED BY THE CITY GOVERNMENT, PRIMARILY USED FOR MEETINGS INVOLVING TOURISTS.

YOU USE IT FOR A VISITOR INFORMATION CENTER. DOESN'T MATTER WHO OWNS OR OPERATES THAT VISITOR INFORMATION CENTER, BUT YOU CAN USE YOUR HOT REVENUE FOR THAT PURPOSE.

CATEGORY TWO THE REGISTRATION OF CONVENTION DELEGATES. REALLY EASY. YOU NEED TO BRING PEOPLE IN FOR A LARGE CONVENTION. YOU CAN USE THAT CATEGORY TO MAKE IT HAPPEN. CATEGORY THREE ADVERTISING AND PROMOTION. THE FIRST ONE ON THE BULLETED LIST. HERE YOU CAN ADVERTISE AND PROMOTE YOUR AREA AS A TOURISM DESTINATION. WHAT ARE WE TALKING ABOUT WHEN WE MEAN ADVERTISING? WELL DIGITAL ADVERTISING RIGHT? CERTAINLY THAT WOULD BE PART OF IT, MAKING SURE YOU HAVE A SOCIAL MEDIA PRESENCE. BUT IT COULD ALSO BE THINGS LIKE ADVERTISING AND PROMOTING EVENTS AND ACTIVITIES THAT TOURISTS AND HOTEL GUESTS ARE GOING TO ATTEND. YOU'VE GOT A BIG FESTIVAL COMING UP THIS WEEKEND. YOU WANT TO ADVERTISE AND PROMOTE THAT FESTIVAL. YOU CAN USE HOT DOLLARS TO ADVERTISE AND PROMOTE THAT FESTIVAL. SO IT'S REALLY BROAD IN THAT REGARD BECAUSE WE CAN USE THIS REVENUE FOR ANY SORT OF ACTIVITY ASSOCIATED WITH ADVERTISING, AN EVENT OR ACTIVITY. PEOPLE ARE GOING TO ATTEND. THIS CATEGORY HAS A MINIMUM EXPENDITURE THRESHOLD ASSOCIATED WITH IT. LIKE MOST CITIES IN TEXAS, YOU LEVY A 7% MUNICIPAL HIGH, AT LEAST ONE SEVENTH OF YOUR REVENUE EVERY FISCAL YEAR MUST BE TOWARDS ADVERTISING AND PROMOTING THE AREA AS A TOURISM DESTINATION.

ONE SEVENTH IS ABOUT 14.28% OF YOUR ANNUAL BUDGET. SO WHEN YOU'RE GOING FORWARD AND LOOKING AT YOUR BUDGET, MAKE SURE THAT YOU'RE AT LEAST ALLOCATING THAT AMOUNT OF REVENUE FOR ADVERTISING YOUR AREAS AND TOURISM DESTINATION. RIGHT NOW, I DO THIS A LOT, PROBABLY CAN TELL THAT I DON'T USUALLY SEE THIS COME UP TOO OFTEN AS AN ISSUE, IN PARTICULAR CITIES. UNLESS A CITY WANTS TO SAVE ITS HOTEL TAX REVENUE FOR A NUMBER OF FISCAL YEARS IN ORDER TO CONSTRUCT A PROJECT, YOU CAN DO THAT. THAT'S FINE. YOU DON'T HAVE TO SPEND ALL YOUR REVENUE. YOU PROBABLY SHOULDN'T SPEND ALL OF YOUR REVENUE EVERY YEAR, BUT YOU DO NEED TO SPEND AT LEAST ABOUT 14.28% OF IT EVERY YEAR ON ADVERTISING AND PROMOTION. THE ARTS. YOU CAN USE HOT REVENUE FOR ARTS RELATED EVENTS AND ACTIVITIES.

YOU HAVE A MUSIC FESTIVAL YOU WANT TO PUT ON IN THE COMMUNITY, AND YOU WANT TO USE HOT REVENUE FOR IT. COOL MUSIC IS A FORM OF ART. IF TOURISTS AND HOTEL GUESTS ARE GOING TO BE

[00:15:05]

[00:20:02]

WHAT'S REASONABLE TO YOU. THAT'S THAT'S GOING TO BE THE CASE FOR ANYTIME WE HAVE A GRAY AREA, WE'RE GOING TO LOOK AT WHAT'S A REASONABLE INTERPRETATION OF THAT PHRASING, RIGHT? TRANSPORTATION SYSTEM TOURS A TOURIST ATTRACTION IN OR NEAR THE MUNICIPALITY.

SOMEWHAT FUZZY WORDING. RIGHT. AND IF YOU HAVE A REASONABLE INTERPRETATION OF WHAT YOU THINK A TOURIST ATTRACTION IS, THAT SHOULD BE ENOUGH. OKAY. THANK YOU. HOW ABOUT TRAFFIC CONTROL FOR SPECIAL EVENTS? IT'S GOING TO DEPEND A LITTLE BIT ON WHAT THE EVENT IS. THE QUESTION WAS WHAT ABOUT TRAFFIC CONTROL FOR A SPECIAL EVENT? SO THE REASON WHY I SAY IT DEPENDS.

I HATE TO GIVE YOU A LAWYERS IT DEPENDS ANSWER, BUT IT'S JUST A FACT OF WHAT WE'RE TALKING ABOUT HERE. THE UNDERLYING EVENT ITSELF MUST BE ONE THAT WE CAN CATEGORIZE WITHIN ONE OF THESE CATEGORIES THAT'S AVAILABLE TO US, RIGHT? SO THE MUSIC FESTIVAL EXAMPLE IS AN EASY CATEGORY TO PICK FROM, RIGHT? BECAUSE WE KNOW A MUSIC FESTIVAL COULD BE CATEGORIZED AS AN ARTS EVENT, RIGHT? SO THE COSTS ASSOCIATED WITH HOSTING THAT MUSIC FESTIVAL, INCLUDING TRAFFIC MANAGEMENT ASSOCIATED WITH IT, COULD BE COVERED UNDER THAT PARTICULAR CATEGORY. BUT LET'S CHANGE THE EVENT. MAYBE LET'S SAY IT'S NOT A, YOU KNOW, A MUSIC EVENT. MAYBE IT'S SOMETHING ELSE, I DON'T KNOW, SOMETHING THAT'S NOT IN THE ARTS WORLD. RIGHT. CAN WE STILL USE HOTEL TAX REVENUE FOR THE TRAFFIC MANAGEMENT SYSTEM? IT'S GOING TO DEPEND IF WE CAN FIT THAT EVENT INTO ONE OF THE OTHER CATEGORIES THAT'S AVAILABLE TO US. IF WE GET THE SPORTING EVENT THING CLARIFIED IN THE CODE, AND MAYBE IT'S A SPORTING EVENT, WE COULD USE HOT REVENUE FOR IT UNDER THAT PARTICULAR CATEGORY, RIGHT? SO IT'S GOING TO DEPEND A LITTLE BIT ON WHAT WE'RE TALKING ABOUT HERE, WHETHER WE CAN FIT THOSE COSTS IN. AND THEN ONE MORE THING ON YOUR YOUR LIST HERE. AND THAT IS GOING TO BE CERTAIN SPORTS FACILITY IMPROVEMENTS CAN BE FUNDED WITH HOTEL TAX REVENUE. BUT THE SPORTS FACILITY THAT'S IMPROVED WITH HOTEL TAX REVENUE HAS A STRICT FIVE YEAR CLAWBACK ASSOCIATED WITH IT. IF YOU PICK OUT A SPORTS FACILITY THAT'S BEEN USED AT LEAST TEN TIMES IN THE PRECEDING YEAR FOR REGIONAL, STATE OR NATIONAL CHAMPIONSHIP SPORTS ACTIVITY, AND YOU IMPROVE THAT SPORTS FACILITY WITH HOT REVENUE. YOU'RE ONE OF THE CITIES THAT CAN DO THAT. THAT'S FINE. BUT FIVE YEARS LATER, YOU NEED TO DO AN ANALYSIS AS A CITY AND DETERMINE HOW MUCH REVENUE YOU SPENT ON THE FACILITY, DOING THE IMPROVEMENTS FIVE YEARS PRIOR, AND COMPARE THAT WITH THE ECONOMIC ACTIVITY AT AREA HOTELS ATTRIBUTABLE TO THE EVENTS OF THAT SPORTS FACILITY.

AND THOSE NUMBERS NEED TO PAN OUT OR THE ECONOMIC ACTIVITY AT THE AREA. HOTELS NEED TO EXCEED THE AMOUNT OF REVENUE SPENT. NOW, IF YOU MISCALCULATED FIVE YEARS AGO, DON'T WORRY. THE STATE OF TEXAS ISN'T GOING TO SWOOP IN AND TAKE AWAY YOUR MONEY. BUT WHAT THE STATE OF TEXAS DOES REQUIRE, BY STATUTE ANYWAY, IS THAT YOU ALLOCATE THE DIFFERENTIAL FROM YOUR GENERAL FUND FOR HOT REVENUE RELATED PURPOSES. OKAY, IT'S STILL YOUR MONEY, BUT YOU GOT TO FOLLOW NOW THE TAX CUT FOR THAT DIFFERENCE. SO THAT'S OUR TWO PART TEST, RIGHT? WE WANT TO SPEND A DOLLAR OF HOT REVENUE. WE NEED TO MAKE SURE IT FITS WITHIN THIS TWO PART TEST THAT EVERY DOLLAR DIRECTLY PROMOTE TOURISM AND THE HOTEL AND CONVENTION INDUSTRY, AND THAT WE CAN FIT IT WITHIN ONE OF THE EIGHT CATEGORIES THAT'S AVAILABLE TO US FOR THE CITY.

WHAT QUESTIONS DO YOU ALL HAVE? WELL, I'LL HANG AND HAVE MORE QUESTIONS. OKAY. YEAH. ALL RIGHT. THANK YOU. SURE. YOU BET. OKAY. SO AS FAR AS THIS DUNCANVILLE IS CONCERNED, IF WE GO TO THE NEXT SLIDE. SO WE'VE HAD QUITE A FEW CONVERSATIONS WITH JUSTIN JUST OVER THE LAST FEW MONTHS. AND SO AT THE END OF THE DAY, OUR GOAL IS TO, IS TO JUST BRING PREDICTABILITY TO THIS, TO THIS PROCESS. YOU KNOW, IT SEEMS LIKE EVERY YEAR IT'S ALWAYS KIND OF A, YOU KNOW, THERE'S A LOT OF WORK THAT GOES INTO THIS AND THEN, YOU KNOW, IS IT OR IS IT NOT ELIGIBLE? AND, AND WE'D REALLY LIKE TO TRY TO GET AWAY FROM THAT. AND I THINK THE GOOD THING HERE WITH THIS RECOMMENDATION IS, YOU KNOW, WE ARE AWARE OF THE THE ADVERTISING REQUIREMENTS.

SO AS JUSTIN MENTIONED, WE ARE SUPPOSED TO BE SPENDING ROUGHLY 14.3% OF OUR HOT FUNDS EACH YEAR ON THIS ADVERTISING CATEGORY. SO FOR US, ON AVERAGE, WE TAKE IN ABOUT 1.2 MILLION IN HOT FUNDS REVENUE. AND SO THAT EQUATES TO ABOUT $171,000. THAT WOULD HAVE TO BE SPENT ON THIS ADVERTISING CATEGORY. AND I DON'T SEE DEVIN HERE, BUT I KNOW SHE'S DONE. SHE OH, THERE'S DEVIN. SO SHE'S DONE SOME RESEARCH ON, YOU KNOW, COSTS FOR ADVERTISING ON OUR LOCAL TV STATIONS, FOR EXAMPLE, YOU KNOW, WHERE WE WOULD ADVERTISE OUR SIGNATURE EVENTS.

SHE'S ALSO RAN SOME NUMBERS LOOKING AT BILLBOARDS, YOU KNOW, ACROSS THE METROPLEX WHERE WE COULD ALSO ADVERTISE SOME OF OUR EVENTS. AND SO PRETTY EASILY WE COULD, WE COULD SPEND OVER HALF OF THAT $170,000 AMOUNT JUST, JUST IN THOSE TWO AREAS ALONE. AND THEN IF, LET'S SAY WE WANTED TO, TO DOUBLE THAT EXPOSURE, THEN THERE WE GO. WE'VE SATISFIED THAT REQUIREMENT. THERE ARE OTHER PUBLICATIONS OUT THERE THAT WE CAN LOOK TO ADVERTISE IN AS WELL, YOU KNOW, MAGAZINES AND OTHER PUBLICATIONS AND SO FORTH. SO, SO THAT'S, THAT'S WHERE WE

[00:25:05]

ANOTHER THING THAT WE'VE, WE'VE TALKED ABOUT IS TO LOOK AT FUNDING THE DUNCANVILLE CHAMBER AS WELL AS THE BASKETBALL TOURNAMENTS, MAYBE THROUGH THE DCDC INSTEAD OF INSTEAD OF JUST RELYING UPON HOT FUNDS. AND ONE WAY THAT COULD WORK IS INSTEAD OF, LET'S SAY, FUNDING THE 4TH OF JULY EVENT SOLELY THROUGH THE DC EDC, MAYBE WE WE CAN LOOK AT BASICALLY SWAPPING OUT FUNDING SOURCES AND UTILIZING HOT FUNDS TO PAY FOR, FOR PART OF THAT AND THEN THEREBY FREEING UP DC, DC DOLLARS THAT COULD THEN BE USED ON, ON SOME OF OUR SPORTING EVENTS OR, YOU KNOW, THE CHAMBER AND IN PARTICULAR THE VISITOR CENTER, BECAUSE THE VISITOR CENTER IS AT THE IS AT THE CHAMBER. SO THAT'S, THAT'S ONE THING THAT WE'RE LOOKING AT AS WE GO INTO FY 27. THIS IS MY LAST SLIDE. SO IF IF YOU ALL HAVE ANY QUESTIONS ABOUT ABOUT THIS PROPOSED PATH FORWARD OR, YOU KNOW, JUST THE USE OF, OF HOT FUNDS IN GENERAL WITH, WITH JUSTIN HERE, I'D BE HAPPY TO OPEN UP THE FLOOR. YES, MA'AM. YEAH. I WANT TO GO BACK. IT KIND OF GOES BACK TO THAT FIRST PRESENTATION. HOW STRICT ARE THE REGULATIONS TO THE EXTENT THAT WHEN YOU PUT HEADS IN BEDS, SOME GROUP WITHIN THE CITY PUTS HEADS IN BEDS THAT YOU ACTUALLY CAN IDENTIFY EVERY ONE OF THOSE HEADS AND BEDS. SURE. SO IT'S A GOOD QUESTION, MAYOR. AND THE ANSWER IS GENERALLY YOU DON'T HAVE TO BE EXTREMELY STRICT ON THIS, RIGHT? I ALWAYS SAY THIS IS A BIT OF AN ART INSTEAD OF A SCIENCE WHEN IT COMES TO ESTIMATING ROOM NIGHTS. NOW, IT'S GOING TO DEPEND A LITTLE BIT ON EXACTLY WHAT WE'RE TALKING ABOUT AS FAR AS AN EVENT THAT WE'RE PROMOTING OR WHAT WE HAVE GOING ON. SO WE TAKE THE SPORTING EVENT AS AN EXAMPLE. IF WE HAVE A SPORTING EVENT IN THE AREA AND THERE'S TEAMS THAT ARE REGISTERING TO PARTICIPATE IN THAT SPORTING EVENT, AND THAT'S REALLY WHERE WE'RE GOING TO BE SPENDING OUR MARKETING DOLLARS. WELL, IT'S REALLY PRETTY EASY FOR US TO MAKE A DETERMINATION AS TO WHAT SORT OF ECONOMIC IMPACT AS FAR AS HOTEL ACTIVITY THAT EVENT HAS, BECAUSE WE CAN ASK THE THE EVENT ORGANIZERS TO TRACK FOR US, YOU KNOW, HOW MANY OF THEIR PEOPLE ARE COMING FROM OUT OF TOWN, OR IT GETS TRICKIER OR IS GOING TO BE LIKE AN EVENT THAT'S OPEN TO THE PUBLIC AT LARGE AND WHERE YOU DON'T HAVE AN ADVANCE REGISTRATION ASSOCIATED WITH IT. RIGHT.

MAYBE WE HAVE A BIG, I DON'T KNOW, FALL FESTIVAL OR WINTER FESTIVAL. IT'S OPEN TO THE PUBLIC. IT RUNS FOR A COUPLE WEEKENDS. PEOPLE COME FROM ALL OVER. WE'RE GOING TO HAVE TO DO SOME ESTIMATION AS TO HOW, WHAT SORT OF ECONOMIC ACTIVITY AREA HOTELS ARE LIKELY TO HAVE. NOW THERE'S SOME DIGITAL TOOLS THAT ARE AVAILABLE TO US, RIGHT? WE CAN USE SOME OF THE TOOLS LIKE PLACER AI OR OTHERS THAT ARE OUT THERE TO TRY AND TRACK VISITATION, OR AT LEAST WHERE PEOPLE ARE COMING FROM GEOGRAPHICALLY TO GET A SENSE AS TO WHAT OUR TOURIST IMPACT IS. BUT WE'RE GOING TO BE JUST DOING SOME AN ESTIMATE AS WHAT THIS AND YOU KNOW WHAT? THAT'S JUST FINE, MAYOR. THAT'S JUST FINE. AS LONG AS WE CAN SHOW THAT WE HAVE SOME ECONOMIC ACTIVITY AREA HOTELS, THAT'S GENERALLY ENOUGH FOR TAX CODE PURPOSES, RIGHT? A LOT OF THESE CATEGORIES, PARTICULARLY THE ONES THAT WERE ON THAT TOWARDS THE TOP OF THAT LIST, WE TALKED ABOUT ADVERTISING AND PROMOTION. WE TALK ABOUT THE ARTS, HISTORICAL RESTORATION AND

[00:30:02]

THE PLACER AI IS, IS BASICALLY WHAT IT DOES IS IT'S LIKE A TRACKING COOKIE THAT'S ON PEOPLE'S PHONES. AND SO IF YOU SUBSCRIBE TO THE SERVICE, WHOEVER'S DOING THAT SUBSCRIPTION FOR YOU, WHETHER IT'S A CITY EMPLOYEE OR EVENT ORGANIZER, THEY CAN GET A READOUT AS TO WHERE THESE PEOPLE CAME AND WHERE THEY WENT ROUGHLY. SO THEY CAME TO A HOTEL, THEY CAME TO A AND THEN TO THE EVENT. YOU'LL GET THAT THAT SOME OF THAT INFORMATION YOU'RE GOING TO HAVE TO EXTRAPOLATE, RIGHT? HOW NOT EVERYBODY'S GOING TO HAVE THAT TRACKING COOKIE ASSOCIATED WITH IT. I'M GOING TO BE TALKING, I'M TALKING HERE ABOUT THINGS THAT I DON'T FULLY UNDERSTAND. BUT BUT THIS IS BUT, YOU KNOW, WE'RE GOING TO USE THAT INFORMATION TO TRY AND GET A SENSE AS TO WHAT LEVEL OF ECONOMIC IMPACT IS ASSOCIATED WITH IT. GREAT. THANK YOU. YEAH. WE YOU KNOW, Y'ALL KNOW, WE USE PLACE AI ALL THE TIME, YOU KNOW, TRACKING OUR EVENTS. SO WE CAN CERTAINLY LOOK AT UTILIZING IT IN THAT CAPACITY TO HAVE ANY OTHER QUESTIONS THERE. THANK YOU. THANKS FOR HAVING ME. LIKE I SAID, THIS IS A WAY TO KIND OF LOOK AT SOME STRATEGY AND GOING FORWARD. SO IF YOU HAVE QUESTIONS FURTHER, WE CAN WE CAN ADDRESS THEM AS WE COME UP. BUT. THANK YOU VERY MUCH. OUR NEXT UP IS WE'RE GOING TO GIVE A RECAP ON ECONOMIC DEVELOPMENT. MR. MARLIN GOFF. THANK YOU FOR HAVING ME. I'LL BE MEETING BEFORE I GO. WAIT FOR HIM TO CLEAR MY SPACE. BUT GOOD EVENING, MAYOR. CITY COUNCIL STAFF MARLIN GOFF, ECONOMIC DEVELOPMENT. HAPPY TO TALK WITH YOU ALL ABOUT THE FY 2026 2027 DC, DC BUDGET. RIGHT. THAT WAS ADOPTED BY THAT BOARD LAST MONDAY, JUNE 22ND. THIS GOING THE WRONG DIRECTION. SO WE'LL SAY THE CONVERSATION WITH THE DC BOARD ABOUT HOW WE APPROACH THE BUDGET. I ACTUALLY STARTED BACK IN FEBRUARY AT THE JOINT MEETING WITH THE CITY COUNCIL AND THE TAX INCREMENT FINANCING BOARD. RIGHT. YOU'LL RECALL THAT CONVERSATION. WE REALLY DOVE INTO THE THE CURRENT FINANCIAL SNAPSHOT OF THOSE ENTITIES AND SPECIFICALLY THE FUND BALANCE. RIGHT. AND SO I WANT TO MAKE THAT POINT AS WE WALK THROUGH HOW WE APPROACH THIS BUDGET EXERCISE WITH THE CORPORATION, LIKE FUND BALANCE IS REALLY GOING TO BE THE CATALYST THAT EXPLAINS, YOU KNOW, THE MATH IN TERMS OF HOW THE BUDGET STRUCTURE, RIGHT? SO THE FIRST WORKSHOP AFTER WE APPROVED THE CALENDAR OF THE DC WAS IN APRIL, RIGHT. AND, AND THEN WE HAD ANOTHER WORKSHOP IN MAY. AND THEN AS I MENTIONED EARLIER, THE PROPOSED BUDGET WAS ADOPTED JUNE 22ND. WHAT WE TALKED ABOUT DURING THE WORKSHOP WAS, WAS THIS LIKE, WHAT'S THE STRATEGY? WHAT ARE WE TRYING TO ACCOMPLISH BOTH FINANCIALLY WITH THE CORPORATION AND THE WORK PLAN FOR THE STAFF, RIGHT? THE GOALS, THE MILESTONES, HOW ARE WE GOING TO MEASURE, YOU KNOW, WHAT, WHAT WE WANT THIS FISCAL YEAR TO LOOK LIKE? AND SO HERE WE SEE THOSE CATEGORICAL STRATEGIES AND PRIORITIES. THE NEXT SLIDE. IF THE FIRST SLIDE WAS THE WHAT THIS SLIDE IS SHOWING THE WHERE AND THE HOW. RIGHT. BEING MORE SPECIFIC, RIGHT. SO THE PRIORITY CORRIDORS THAT WE ARE THE USUAL SUSPECTS. THINK ABOUT THE REAL ESTATE MARKETING VIDEO THAT WE THAT WE DISPLAYED AND UNVEILED A COUPLE WEEKS AGO. RIGHT? SO MAIN STREET FROM NORTH TO SOUTH, RIGHT. THAT COVERS OUR DOWNTOWN BUSINESS DISTRICT, BUT ALSO OUR GATEWAY CORRIDORS. WHEATLAND. I EXCUSE ME, I 20 HIGHWAY 67, THE FIELDHOUSE VICINITY. RIGHT. WE JUST TALKED A GREAT DEAL ABOUT THAT ASSET THAT GENERATES A LOT OF ECONOMIC ACTIVITY AND TOURISM. AND THEN THE TYPES OF PROJECTS, THE TYPES OF ECONOMIC ACTIVITY THAT WE'RE LOOKING TO INVEST IN AND LEVERAGE AND USE OUR TOOLKIT. YOU'LL SEE ON THAT RIGHT COLUMN. ALL RIGHT. SO FUND BALANCE, RIGHT. SO THIS CURRENT BUDGET THAT WAS ADOPTED, WE FORECASTED WE END THE YEAR ABOUT $7 MILLION, RIGHT? THE PROJECTIONS HAVE CHANGED, RIGHT? ONE OF THE THINGS THAT INCLUDED IS SOME OF THE TRANSACTIONS THAT THE CORPORATION HAS HAD. AND JUST OVERALL, JUST SOME FUNCTION OF THE MARKET ACTIVITY, RIGHT? AND SO WE'RE FORECASTING THAT TO BE A LITTLE OVER $8 MILLION AT THE END OF THIS FISCAL YEAR. AGAIN, THAT REPRESENTS ALMOST A THOUSAND DAYS OF RESERVES OF OPERATING RESERVES. AND WHILE THAT MAY BE GOOD USE OF BEING FISCALLY

[00:35:05]

BECAUSE IF WE DON'T DO ANYTHING DIFFERENTLY, IT'S GOING TO BE DIFFICULT FOR THAT NUMBER TO GO DOWN BECAUSE EVERY YEAR THE CORPORATION'S BOTH BEING PROFITABLE WITH SOME OF THE TRANSACTIONS AS WELL AS FUNCTION OF THE MARKET. IF OUR SALES TAX REVENUES GROWS, THE INDUSTRY GROWS, THEN SO TOO IS OUR FUND BALANCE. SO NORMALLY THE EXERCISE IS YOU PROJECT THE FORECASTED REVENUES AND THEN YOU GET TO BUILD YOUR EXPENDITURE BUDGET TO MATCH IT.

QUESTION THANK YOU MAYOR. YOU SAY WE HAVE 1000 DAYS, ROUGHLY ABOUT 1000 DAYS IN RESERVE.

YEAH. WHAT IS THE MINIMUM THAT WE NEED TO HAVE AS FAR AS STATE LAW? I THINK THERE'S A MINIMUM, ESPECIALLY THERE'S A RECOMMENDED BEST PRACTICES, AND THAT'S BETWEEN 90 AND 180 DAYS.

BUT SO PER OUR POLICY, OUR POLICY IS REALLY RELEVANT MORE TO THE GENERAL FUND AND UTILITY OPERATIONAL FUNDS. ECONOMIC DEVELOPMENT IS A LITTLE DIFFERENT TO THAT. BUT HE IS JUST SPEAKING TO SPEAKING TO BEST PRACTICES, AND WE WANT TO HAVE SOME ON RESERVE, OBVIOUSLY, TO CARRY OUT OUR OPERATIONS IF SOMETHING WERE TO HAPPEN. BUT BUT 1000 IS A LITTLE. YEAH. SO IN TERMS OF CONTEXT, RIGHT. IF YOU LOOK ACROSS THE STATE AND THE LANDSCAPE FOR TYPE B AND A CORPORATIONS, IT'S MORE ALIGNED 90 TO 180 DAYS. IF YOU WANTED TO JUST LIKE BARE BONES. SO OBVIOUSLY HAVING CLOSER TO 1000 DAYS, WE'VE GOT SOME SURPLUS, UNRESTRICTED FUND BALANCE THAT IN SOME INSTANCES, YOU KNOW, IT'S EARNING SOME INTEREST OR MONEY, BUT IT REALLY IS AN OPPORTUNITY COST MAYBE. AND SO WITH THIS, WITH THIS PROPOSED BUDGET THAT WAS ADOPTED, WE'RE GOING TO BUILD A STRATEGIC PLAN TO KIND OF BRING THAT FUND BALANCE DOWN OVER TIME. AND HOW WE'RE GOING TO DO THAT IS NOT JUST RESTRICT THE PROPOSED BUDGET ONLY TO THE FORECASTED REVENUES OF OUR PORTION OF THE SALES TAX THAT WILL BE COLLECTED. RIGHT. SO HERE WE SHOW IN THIS PROPOSED, EXCUSE ME, IN THIS FIRST FISCAL YEAR BY A STRATEGIC DRAW DOWN OF THAT FUND BALANCE, THAT AGAIN, IS CONTINUING TO GROW. WE'VE GOT PROJECTS IN THE PIPELINE OF CORPORATION OWNED ASSETS THAT ARE AGAIN, GOING TO BE ADDING TO THAT FUND BALANCE THIS YEAR.

IT WAS MENTIONED EARLIER WE HAD THE TRANSACTION WHERE ALTHOUGH THE PROPERTY WAS TITLED TO THE CORPORATION, THE CITY COUNCIL NEGOTIATED THE TERMS OF THAT. WE REFER TO THE TOYOTA PROPERTY, RIGHT. SO THAT ALMOST $1 MILLION ADDED TO THE FUND BALANCE. WE HAD A CD CERTIFICATE OF DEPOSIT THAT MATURED FOR WHEATLAND PLAZA PROJECT A FEW YEARS AGO.

ANOTHER HALF MILLION DOLLARS, RIGHT, ADDED TO THE FUND BALANCE, BUT WE'RE STILL OPERATING BASED SOLELY ON THE FORECASTED REVENUES. AND SO THIS BUDGET IS A DEPARTURE FROM THAT GENERAL PRACTICE. AND SO HERE'S HOW WE'RE PROPOSING TO DO THAT. OUR BUDGET IS MADE UP OF FIVE FUNDS, RIGHT. WE'VE GOT BEAUTIFICATION HISTORICALLY OF PARKS AND RECREATION KEEP DUNCANVILLE BEAUTIFUL BOARD. THEY WERE DOING JUST THAT BEAUTIFICATION EFFORTS FOR OUR GATEWAY CORRIDORS, LANDSCAPING, ENTRYWAYS, MONUMENTS. THE SECOND FUND TRANSFERS. SO TRANSFERS TO GENERAL OR OTHER FUNDS. THE OUR OPERATIONS ARE FUNDED BY THE CORPORATION AND THAT ALLOCATION OF SALES TAX. BUT AS CITY EMPLOYEES WERE HOUSED IN CITY HALL, RIGHT. OUR STAFF BENEFITS FROM PAYROLL, HR, COPYING. WE HAVE OFFICE SUITES. AND SO THIS IS A FORMULA THAT THE CITY OR THE GENERAL FUND WILL ALLOCATE AND WE TRANSFER THAT BACK. WHAT ELSE IS INCLUDED IN THAT FUND IS YOU'LL SEE SOME OF THE CONTRIBUTIONS TO CAPITAL PROJECTS STILL ELIGIBLE UNDER FOUR B LEGISLATION. RIGHT. AND AGAIN, A WAY THAT WE'VE ALLOCATED THE REDUCTION IN THAT FUND BALANCE ADMINISTRATION. THAT'S OUR DEPARTMENT OPERATIONS, SPECIAL EVENTS, AND THEN INCENTIVES. RIGHT? SO WE'LL JUST GO THROUGH REAL QUICKLY. THERE'S ONLY A FEW MORE SLIDES, BUT EACH INDIVIDUAL FUNDS, YOU'LL SEE WHAT'S HIGHLIGHTED, RIGHT? SO THE BIGGEST POT AS IT SHOULD BE IS OUR INCENTIVES, RIGHT? SO WE USE A PORTION OF THAT STRATEGIC FUND BALANCE DRAWDOWN, RIGHT, TO ENHANCE SOME OF OUR TOOLKIT TO INVEST IN PROJECTS, DESIGN INCENTIVE GRANTS. THIS EXAMPLE WHERE WE SUPPLEMENTED THAT AMOUNT NOW SO WE CAN MAKE MORE QUALIFIED PROJECT INVESTMENTS UNDER THAT CATEGORY. SPECIAL EVENTS HERE, WE FUND THAT LIST OF STRATEGIC SIGNATURE EVENTS EACH YEAR. IT'S THE BREAKDOWN OF HOW THAT FUND IS ALLOCATED

[00:40:03]

SMILES OR GOOD THING. THANK YOU. ALL. THANKS, JOE. ALL RIGHT. SO WE'LL JUST KEEP TRUCKING ALONG HERE. THIS IS GOOD. MAKING GOOD TIME SO FAR. OUR NEXT SECTION THAT WE'RE GOING TO SPEND SOME, HOPEFULLY SOME GOOD TIME ON HAVING SOME GOOD DISCUSSION AND SOME EXERCISES WITH YOU ALL WITH YOU ALL IS ON CAPITAL IMPROVEMENT PROJECTS. SO TO KIND OF KICK START THIS, THIS WILL BE KIND OF A GROUP EFFORT. MISS JIHAD MUHAMMAD, OUR ASSISTANT PUBLIC WORKS DIRECTOR, WILL BE PRESENTING ON SOME OF THIS INFORMATION, AS WELL AS PARKS AND OUR PARKS AND REC DIRECTOR, AS WE JUST KIND OF WALK THROUGH SOME CAPITAL IMPROVEMENT PROJECTS. THE FIRST THING I REMEMBER, WE WENT THROUGH THIS EXERCISE A COUPLE OF YEARS AGO WITH OUR PREVIOUS CITY MANAGER AND PUT TOGETHER A CAPITAL IMPROVEMENT PLAN, AND THAT CAPITAL IMPROVEMENT PLAN WAS REALLY MORE TARGETED, PROBABLY ON FACILITIES AND BIG PROJECTS AND SORT OF THOSE SORT OF THINGS. WHAT WE DO NOT HAVE AND WHAT WE RECOGNIZE WE DO NOT HAVE, AND WHAT WE'RE GOING TO WORK ON IN THIS NEXT YEAR IS TO FORMALIZE A CAPITAL IMPROVEMENT PLAN. AND SO WITH THAT, I WANT TO WALK THROUGH WE DID WE DID DO THAT. BUT IT'S MISSING. YOU KNOW, IT'S NOT HOLISTIC. IT'S NOT INCLUDED, YOU KNOW, UTILITIES AND STREETS AND THAT SORT OF THING. IT WAS MORE OF THE BIG PROJECTS LIKE THE FACILITY OR AM I OR THOSE, YOU KNOW, PROJECTS THAT WE HAD PRIORITIZED TOGETHER, YOU KNOW, A FEW YEARS BACK. SO IT'S REALLY MISSING SOME COMPONENTS TO IT. SO WE WANT TO WORK TOGETHER TO FORMALIZE AND ADOPT A MORE STANDARD PLAN THAT YOU MAY BE USED TO SEEING FROM OTHER CITIES. SO BUT WITH THAT, I WANTED TO START BASIC AND WALK YOU THROUGH. FOR THOSE WHO HAVEN'T REALLY GONE THROUGH A CAPITAL IMPROVEMENT PROJECT, WHAT WE'RE REALLY EVEN TALKING ABOUT. SO STARTING KIND OF BASIC AND FUNDAMENTAL HERE. SO WHAT IS AN ASSET? THIS IS WHAT YOUR CAPITAL PROJECTS ARE BUILT ON, RIGHT? IS OUR ASSETS. SO JUST BY DEFINITION A CAPITAL ASSET, THOSE ARE USUALLY LONG TERM THINGS WE USE THEM FOR.

FOR OPERATIONS. IT HAS A USEFUL LIFE THAT IS LONGER THAN ONE YEAR. IT'S NOT SOMETHING THAT'S LIQUIDATED, MEANING YOU CAN JUST GO SELL IT TOMORROW. IT'S NOT INTENDED TO BE, YOU KNOW, CONVERTED TO CASH IN A SHORT TERM PERIOD. SO FOR A CITY, THAT WOULD MEAN BUILDINGS, RIGHT? VEHICLES, EQUIPMENT, STREETS, AN ASSET HAS A LIFE CYCLE. YOU KNOW, THIS IS THE PLANNING PHASE OF IT. YOU KNOW, YOU HAVE TO PLAN FOR WHAT YOU NEED TO PROCURE OR WHAT ASSET YOU NEED TO REPLACE. AND THEN YOU CONSTRUCT IT, YOU DESIGN IT, YOU ACQUIRE IT. THEN YOU BULK OF YOUR TIME IS SPENT ON THE OPERATIONS AND THE MAINTENANCE OF IT. AND THEN AT SOME POINT IT DOES END AND YOU HAVE TO EITHER CONSIDER REPLACEMENT OF THAT ASSET OR YOU HAVE TO REHAB IT. AND AT SOME POINT IT GETS EVEN BEYOND THAT, WHERE WE JUST HAVE TO COMPLETELY DISPOSE OF IT OR RETIRE IT, RIGHT? SO THAT'S GENERALLY WHAT THE ASSET LIFE CYCLE LOOKS LIKE. SO WHAT ARE CITY ASSETS? THESE ARE NOT NECESSARILY THE FUN, YOU KNOW THINGS TO THINK ABOUT. JUST

[00:45:02]

YEAH. YOU'RE WELCOME. SORRY. SO THESE ARE OUR CURRENT ASSETS AND STATISTICS. YOU KNOW, I WANTED TO SHOW YOU JUST TO GIVE YOU A REFERENCE. SO WE MAINTAIN OVER 300 MILES WORTH OF WATER MAINS. SO THE LITTLE MAP YOU SEE HERE IS FROM HERE GETTING YOU TO SAN ANTONIO, WHICH IS ACTUALLY LESS THAN THE TOTAL MILES OF WATER MAINS WE HAVE TO MAINTAIN AND KEEP UP WITH. SO SEWER LINES, WE HAVE OVER 160 MILES, STREETS, PAVED STREETS OVER 150 MILES, PAVED ALLEYS OVER 36 MILES. WE HAVE 37 TRAFFIC SIGNALS. WE HAVE OVER 13 PLAYGROUNDS. SO IN OUR SYSTEM, WE HAVE OVER $127 MILLION RECORDED IN ASSETS. JUST TO KIND OF GIVE YOU A PERSPECTIVE OF WHAT OUR CITY ACTUALLY FOR OUR 11.2MI■!S, WHAT WE, YOU KNOW, HAVE TO KEEP UP WITH AND MAINTAIN. OKAY. SO AT THIS POINT, MR. MOHAMMED IS GOING TO COME AND TALK ABOUT PRIORITIZATION AND THE SCORING CRITERIA THAT THEY CAME UP WITH FOR HOW WE PRIORITIZE THE CIP PROJECTS. MAYOR, COUNCIL STAFF, GOOD AFTERNOON. THIS IS SHAHEED MOHAMMED, ASSISTANT DIRECTOR OF PUBLIC WORKS. SO I JUST, YOU KNOW, BUILDING ON WHAT JENNIFER HAS ALREADY STARTED TALKING ABOUT, WE HAVE RUN AND SHE MENTIONED CIP AND SHE MENTIONED, YOU KNOW, OUR GOAL OF CREATING A PLAN. NOW, THE PLAN THAT WE'RE TALKING ABOUT IS WE WE DO HAVE A PLAN THAT WAS ESTABLISHED. YES. IT IS NOT COMPREHENSIVE ENOUGH TO COVER INFRASTRUCTURE, A LOT OF THE INFRASTRUCTURE PROJECTS THAT WE NEED. BUT THE MOST IMPORTANT IS WE DO NOT HAVE A FINANCIALLY SUPPORTED PLAN NOR A SPECIFIC DATA DRIVEN, YOU KNOW, LET'S SAY, OR DATA BACKUP PLAN. SO THAT'S WHAT WE TRIED TO ACHIEVE IN TERMS OF FORMALIZING THE WAY WE DO PLAN OUR PROJECT IS TO TRY OUR GOAL. LIKE IN THE PAST, MORE THAN ONE YEAR OF WORK IS TO FOCUS ON CREATING THIS RESULT WHERE WE HAVE DATA DRIVEN PRIORITIZATION, RECOMMENDED PROJECTS. SO UNDER THAT EFFORT, WE ALSO CAME UP WITH SOME KIND OF SCORING CRITERIA PRACTICE WHERE WE WE WERE ABLE TO PROVIDE A SCORE FOR EACH PROJECT THAT WAS IDENTIFIED AS A NEED ON OUR LIST THAT WE HAVE SHARED WITH COUNCIL BEFORE. SO OVERALL SCORING CRITERIA IS LOOKING THIS WAY. SO AS YOU SEE HERE, THE CONDITION WEIGHS ABOUT 50% OF THE TOTAL OF 100% SCORE RISK OR IMPACT IS 20% AND COST IS 20%. AND THE PUBLIC SLASH STAFF INPUT IS ABOUT 10%. NOW WITH THAT, YOU'LL SEE THAT SORRY. SO THOSE MIGHT CHANGE A LITTLE BIT BASED ON, OF COURSE, THE ASSET TYPE OR THE PROJECT CATEGORY THAT WE'RE TALKING ABOUT HERE. SO FOR STREETS, FOR EXAMPLE, WE DO HAVE DATA THAT WE COLLECTED AND SHARED WITH COUNCIL BEFORE ABOUT THE TWO YEARS AGO FOR THE

[00:50:06]

BASED ON THAT SCORING CRITERIA. NOW, QUESTIONS THAT WE HAVE WE GOT EARLIER IN DIFFERENT CONVERSATIONS. WHAT HAPPENS IF WE DON'T DO THIS OR IF WE DELAY, DEFER ANY OF THESE MAINTENANCE OR RECOMMENDED PROJECT AND FOCUSED ON THE THE ANALYSIS WE'VE DONE FOR THE FIVE YEAR PLAN. AND THIS IS THIS IS REALLY GENERAL AS WE WOULD NEED A FULL STUDY IF WE WANT TO LOOK AT EACH AND EVERY PROJECT AND SPECIFIC AND LOOK AT THE SPECIFICS OF NOT DOING THAT.

BUT IN GENERAL, AS WE WE ALL KNOW, WHILE WE'RE TALKING, THESE ASSETS ARE DETERIORATING.

AND WITH THAT SAID, YOU'LL SEE THAT A DELAY OF FIVE YEARS AS A COST IMPACT BEING BASED ON AN ASSUMPTION OF THE CURRENT MARKET INFLATION THAT'S BEING USED FINANCIALLY IS ABOUT 66% PER YEAR. SO IF WE CONSIDER THAT, WE'RE TALKING ABOUT 34% EXTRA ON THE EXISTING COST ESTIMATES THAT WE HAVE, IF WE DELAY FIVE YEARS ON THESE PROJECTS, THIS IS THE FINANCIAL IMPACT. BUT YOU'RE LOOKING AT ALSO AN IMPACT IN TERMS OF THE INCREASING DEMANDS AND THE BACKLOGS WE'RE CREATING ON THESE ASSETS, AS WELL AS THE POTENTIAL INCREASED DEMAND FOR EMERGENCIES. ONE OF THE TERMS I'VE ALWAYS HEARD WHEN I JOINED THE CITY HERE ABOUT TWO YEARS AGO, THAT, YOU KNOW, WHEN WE TALK ABOUT CIP, THERE WAS THIS ANSWER. WE ALWAYS GOT DRAGGED INTO DIFFERENT DIRECTION. WE ALWAYS HAD TO RESPOND TO EMERGENCIES. THAT TELLS ME WE'RE ALREADY IN THIS STAGE. WE'RE ALREADY BEHIND THE CURVE ON. WE ALREADY HAVE A LOT OF DEFERRED MAINTENANCE, A LOT TO THIS POINT WHERE WE ARE IN THIS STAGE ALREADY, WHERE WE'RE RESPONDING TO EMERGENCIES A LOT VERSUS BEING PROACTIVE, BEING WORKING ON WHAT WE SHOULD WORK ON. SO A DELAY OF TEN YEARS, AS YOU SEE HERE, OBVIOUSLY, IS GOING TO INCREASE THE ESTIMATED COST OF THIS PROJECT BY ABOUT 79% AND DEFINITELY GENERATES MORE BACKLOG, MORE MORE TURNING FAIR CONDITION INTO POOR CONDITION KIND OF SITUATION FOR THESE ASSETS. SO. MR. QUICK QUESTION FOR YOU. WHILE WE'RE STILL ON THE TOPIC OF COST, MAYBE 1 OR 2 SLIDES BACK, YOU TALKED ABOUT LIKE TEN POINTS. IT'S A DIVIDE IN BETWEEN HIGH COST AND LOW COST. COULD YOU TALK A LITTLE BIT ABOUT WHAT'S THE DISTINGUISHING WHAT WHAT IS CONSIDERED HIGH COST VERSUS LOW COST FROM PROJECT TO PROJECT, OR HOW IS THAT GOING TO BE DETERMINED? I MEAN, WE'RE LOOKING AT IT IN TERMS OF THE BUDGET ABILITY FOR SOME OF THESE DEPARTMENTS OR THESE CATEGORIES. SO SOME OF THESE PROJECTS, LET'S SAY, ARE ESTIMATED TO BE WITHIN, YOU KNOW, OUR MEANS AND AVAILABLE BUDGETS THAT WE CAN ACHIEVE WITHIN THE EXISTING RESOURCES WE HAVE. THOSE ARE CONSIDERED LOWER COST. WE GIVE THEM HIGHER SCORES SO WE CAN PRIORITIZE THEM AND GET THEM DONE. NOW, THOSE PROJECTS THAT WE KNOW WILL NEED FURTHER ANALYSIS TO PROVIDE FINANCING, WHICH, YOU KNOW, USUALLY PROJECTS OF LIKE MULTIPLE MILLION DOLLARS. SO

[00:55:02]

BUT THE BUT IT'S NOT OR AT LEAST NOT DEFINITELY NOT AT THE SAME RATE THAT THE COST OF THESE PROJECTS IS GOING. SO WE'RE INCREASING THE GAP OF THE NEEDS AS WELL. SO THIS IS ANOTHER PERSPECTIVE IN TERMS NOT ONLY THE COST IS GOING TO BE MORE TO DO THEM, BUT ALSO THE FUNDING GAP THAT WE HAVE IS GOING TO BECOME MORE AS WE WAIT MORE TO DO THESE. SO SO BASICALLY, AS I MENTIONED, REALLY JUST TRY TO KIND OF SHOW A PICTURE OF WHAT WE'RE LOOKING AT IN TERMS OF REALLY NOT DOING THESE PROJECTS OR DELAYING THEM FURTHER. AND WHAT'S THE IMPACT THAT COMES WITH THAT? AND WITH THAT, I THINK, OKAY, SO OKAY, STILL ME. SO NEXT STEPS. WHAT, WHAT DO WE RECOMMEND? WHAT'S NEXT THAT WE'RE LOOKING AT AND WHAT ARE WE WORKING ON? SO WE WANT TO BE ABLE TO BETTER QUANTIFY LONG TERM INFRASTRUCTURE NEEDS AND FUNDING REQUIREMENTS. WE ARE WORKING ON, WE ARE RECOMMENDING IS DEVELOP AND, AND ADOPT AN UPDATED COMPREHENSIVE CAPITAL IMPROVEMENT PROGRAM. WE WANT TO NEXT WORK ON PROBABLY A SEPARATE MEETING OR A WORKSHOP OR WHATEVER IT TAKES TO LOOK AT THE CIP. MORE SPECIFIC TALK THROUGH THE FIVE YEAR PROJECTS OR THE THAT WE TALKED ABOUT HERE AND THEIR SCORE AND EVERYTHING IN DETAILS, AND MAYBE COME UP WITH A PLAN, A FIVE YEAR PLAN THAT WE WANT TO OFFICIALLY UPDATE AND ADOPT, CREATE AN ASSET MANAGEMENT FRAMEWORK DEVELOPMENT, WHICH BASICALLY IS WHAT WE HAVE STARTED HERE, LOOKING AT THE SCORING CRITERIA AND CREATING THIS FORM OF DATA DRIVEN PRIORITIZATION PROCESS. IT STARTED WITH OUR MASTER PLANS THAT WE ALSO WORKED ON. THESE ARE ALL INCORPORATED UNDER THE BIG PICTURE OF CREATING AN ASSET MANAGEMENT FRAMEWORK FOR THE CITY IN TERMS OF DOING THE PROJECT VERSUS JUST INVESTING AS WE GO, OR CHANGING THE PLAN OR MOVING THE TARGET ALL THE TIME. AND THEN COMPREHENSIVE UTILITY RATE STUDY, THAT'S DEFINITELY OUR BIGGEST RECOMMENDATION HERE THAT WE ARE ALSO REQUESTING AS PART OF THIS YEAR'S BUDGET, IS TO FUND A COMPREHENSIVE RATE STUDY. WE WANT TO BE LOOKING AT RATES THAT WE HAVE. WE WANT TO BE LOOKING AT WAYS TO FUND THIS CAPITAL IMPROVEMENT PROGRAM, TO BE ABLE TO MAKE THOSE PROJECTS HAPPEN, YOU KNOW, AND AND

[01:00:02]

AND. SO NEXT IS JUST A QUICK REVISION OF OUR GRANTS GRANT AWARDS THAT WE GOT SO FAR.

YOU'VE PROBABLY SEEN THAT LATELY, BUT THIS IS A QUICK RECAP OF THE THINGS WE HAVE, BECAUSE SOME OF THEM HAVE SOME, I THINK MATCH THAT YOU'RE GOING TO SEE IN THE BUDGET LATER TO REFERENCE TO. SO WE HAVE A CDBG, WE USUALLY ARE GETTING ABOUT 82 K OR $82,000 IN THIS. UNDER THE CDBG HUD FUNDS TO SPEND IN UNDERSERVED AREAS, WE HAVE THE LEAD SERVICE LINE INVENTORY THAT WE GOT WITH THE TEXAS WATER DEVELOPMENT BOARD OF ABOUT $1.47 MILLION, OR $1.5 MILLION. WE'VE GOT ALSO AWARDED TWO CIP PROGRAMS PROGRAM APPLICATIONS, WHICH UNDER THE TEXDOT HIGHWAY SAFETY IMPROVEMENTS, WE GOT ABOUT A TOTAL OF TOTAL WORTH OF ABOUT $1 MILLION TWO AND TWO PROJECTS FOR INTERSECTION UPGRADES ON CAMPUS THEM AND WHEATLAND ROAD AND ADA COMPLIANCE. WE ALSO GOT A PLANNING GRANT FOR THE SAFE STREETS FOR ALL WE GOT AWARDED ABOUT. ALSO LITTLE LESS THAN $1 MILLION HERE TO CREATE A COMPREHENSIVE SAFETY AND MOBILITY TRANSPORTATION PLAN. AND THE. WE GOT A WORK ZONE, WORK ZONE EXCHANGE, DATA EXCHANGE GRANTS WITH COG, WHICH IS BASICALLY JUST TO IMPROVE OUR TRAFFIC WORK ZONE SAFETY AND THEN ABLE TO CREATE SOME KIND OF COMMUNICATION BETWEEN US AND TXDOT IN TERMS OF COMMUNICATING WORK AROUND THE CITY. AND THEN WE ALSO GOT WITH COG ABOUT 100 K IN EQUIPMENT GRANTS TO SUPPORT OUR MAINTENANCE AND TRAFFIC OPERATIONS. SO THESE TOTAL AWARDS ARE ALREADY GRANTED. WE HAVE ABOUT ALL IN PROCESS. SOME IS ADVANCED, SOME IS STILL EARLY. BUT ALL OFFICIAL AWARDS FOR ABOUT $3.9 MILLION TOTALING TO ABOUT $3.9 MILLION. HOW LONG AGO DID YOU APPLY FOR THOSE? HOW LONG AGO? YEAH, IT'S IN THE PAST YEAR TO A YEAR AND A HALF.

OKAY. VERY GOOD. SOME OF THESE WE BROUGHT TO YOU RECENTLY TO COUNCIL, LIKE THE WORK ZONE DATA EXCHANGE WAS, I THINK BACK IN MAY, APRIL. YEAH. SO TWO OF THE UPCOMING ONES THAT WE APPLIED FOR RECENTLY, QUESTION. EXCUSE ME. WELL, WE MIGHT GO MORE HIS DIRECTION OR TO MR. JACKSON AND STUFF, BUT WHEN WE WERE AWARDED GRANTS, A LOT OF TIMES WE HAVE TO HAVE A MATCHING PART RIGHT ON THAT. SO IS THAT. YEAH. SO NOT ALL OF THEM DO HAVE MATCHING THOUGH.

SO SOME OF THESE PROJECTS DO NOT HAVE MATCHING. SOME OF THEM DOES. SO ON ALL OF THESE LISTS THERE ARE THREE THAT RELATED TO X DOT PROBABLY ALL THESE FOUR BASICALLY. SO TXDOT PROJECTS PLUS THE TEXAS WATER DEVELOPMENT BOARD ARE GOING TO HAVE A MATCH OR THIS ONE IS ALREADY. YEAH, THIS ONE IS PROBABLY ALREADY 60% DESIGN. SO THE MATCH WAS ALREADY BUDGETED WITH THE LAST YEAR BUDGET, AND IT'S ONLY FOR DESIGN TO COVER DESIGN BECAUSE THIS IS A CONSTRUCTION PROJECT. SO WE ON THIS ONE IS THE SAME THING. WE HAVE DESIGNED ALREADY BUDGETED THIS YEAR. THIS IS A A 20% BASED. SO THE TOTAL COST OF THE PROJECT IS NOT 980. THIS 980 OR.

THESE NUMBERS REPRESENT WHAT WE ARE AWARDED. SO WHAT WE'RE GETTING. IT DOES NOT REPRESENT OUR MATCHES. SO OUR MATCHES ARE MUCH LESS DEFINITELY THAN THESE NUMBERS. BUT NOT ALL OF THE APPLICATIONS HAVE MATCHES EITHER. SOME OF THE LIKE COG IS 100%, CDBG IS 100%. THESE ARE THIS ONE IS BASED ON A LOAN FORGIVENESS. IT'S NOT A MATCH. THE TEXAS WATER AND THESE ARE MATCH. AND YEAH, JUST THE LEAD SERVICE LINE IS THE ONE THAT WE ORIGINALLY DID THE NOTICE OF PROCEED FOR THE CERTIFICATE OF OBLIGATION TO MEET THAT 50% MATCH. SO WE'RE STILL GOING THROUGH THAT PROCESS WITH OUR FINANCIAL ADVISOR BECOMING THE ALSO. BUT THAT'S YEAH, THAT'S THAT 50% FORGIVENESS. SO WITH THESE TWO ARE OTHER TWO THAT WE ARE PURSUING NOW. AND WE HAVE

[01:05:11]

SO IF IT DOES, THAT IS ONE OF OUR CIP PROJECTS THAT'S GOING TO BE WE'RE FINDING, YOU KNOW, IT'S GOING TO BE COVERED BY ALTERNATIVE SOURCE OF FUND IN HERE. SO. GOOD NEWS. WE HAVE A VERY HIGH SUCCESS RATE ON YOUR GRANTS. THANK YOU. ALL RIGHT. SO NOW I'LL JUST TURN THIS TO GIVE ME JUST A REAL QUICK. I HAVEN'T BEEN WATCHING YOU THAT CLOSELY, I APOLOGIZE. DID YOU HAVE ANY QUESTIONS? NOT YET. THANK YOU. I THINK. ANY QUESTIONS? OKAY. THANK YOU, THANK YOU. IN ADDITION TO THESE GRANTS, THERE ARE TWO MORE GRANTS I WANT TO MAKE SURE JUST IS ON YOUR RADAR. THAT IS STILL THAT'S IN MOTION AT THIS POINT. MR. STEVENSON, WE HAVE THE THE VEHICLE CHARGER, ELECTRIC VEHICLE CHARGER THAT'S HAPPENING. I BELIEVE THAT'S ONLY AT THE LIBRARY, THOUGH. CAN YOU SPEAK? I'M SORRY. SPEAK TO THE TWO GRANTS THAT PARKS IS IN CHARGE OF. YEAH. BART STEVENSON, DIRECTOR OF PARKS AND RECREATION. AS MOST OF YOU ARE AWARE, WE DID GET AWARDED TWO SITES HERE IN DUNCANVILLE, ONE AT THE RECREATION CENTER AND LIBRARY AND ONE OF THE SERVICE CENTER. NOW, WE'RE STILL WORKING ON THE STAFF LEVEL. ABOUT THE SERVICE CENTER SITE. I KNOW IT COULD BE GOING UNDERGOING SOME SOME CHANGES HERE IN THE NEAR FUTURE. WE'VE ALREADY TALKED TO COG. IF WE WANT TO GET THAT SITE UP, THAT IS NO PROBLEM AT ALL. IT'S NOT GOING TO AFFECT OUR OTHER SITE, NOR WILL IT AFFECT OUR STANDING WITH COG. SO BUT THAT PARTICULAR PROJECT IS IN THE PROCUREMENT PROCESS. NOW COG IS TRYING TO FIGURE OUT HOW THEY'RE GOING TO DO THE PROCUREMENT PROCESS. WE HAD A MEETING ACTUALLY YESTERDAY. I HAD ELTON BROCK ONLINE ALONG WITH ANGEL DEAL, TO LOOP THOSE GUYS IN. THEY'RE TRYING TO FIGURE OUT EXACTLY WHAT THAT PROCESS LOOKS LIKE AT ONE POINT IN TIME. IN THE BEGINNING, IT WAS GOING TO BE ALL DONE BY COG. I GUESS A FEW CITIES BALKED AT THAT AND ASKING SOME QUESTIONS, SO THERE MAY BE RECONSIDERING THAT. WE WOULD STILL PREFER IT BE RUN BY COG. THEY WE DON'T HAVE THE BANDWIDTH, NOR DO WE HAVE THE EXPERTISE IN THIS PARTICULAR SUBJECT MATTER THAT WE FEEL COMFORTABLE WITH KIND OF RUNNING THAT PROCUREMENT PROCESS FOR EV CHARGERS. SO THAT'S STILL KIND OF UP IN THE AIR, BUT THEY DO HAVE A KIND OF A TIMELINE ON IT. THEY ANTICIPATE HAVING THAT PROCESS COMPLETED IN THE NEXT SIX MONTHS, AND THEN WE WILL THEN WORK MOVE TOWARDS CONSTRUCTION. SO NOW WE'RE LOOKING AT PROBABLY SOMETIME EARLY 2027 FOR THE EV CHARGERS COMING. THANK YOU. JUST WANTED TO GIVE SHIHAD AND BART AND HIS TEAM JUST, YOU KNOW, A LOT OF PRAISE FOR THE WORK THAT IT TAKES TO PUT DOWN IN GRANT. YOU KNOW THEIR LIMITED RESOURCES. ANY DOLLARS WE CAN GET FOR GRANTS THAT HELP US BE ABLE TO DO THE PROJECTS WE NEED TO DO IS CERTAINLY VERY MUCH WELCOME. SO THANK YOU FOR ALL THE WORK Y'ALL HAVE DONE TO, TO GET THOSE GRANTS. ALL RIGHT. SO JUST KIND OF GETTING FURTHER INTO CAPITAL PROJECTS, I HAVE SOME SHOW AND TELL HERE. THIS IS JUST. A BIGGER PIECE OF PAPER REALLY, THAT BREAKS DOWN ALL OF THE PROJECTS THAT WE DO HAVE ON THE HORIZON DOESN'T MEAN PROJECTS ARE FUNDED PER SE, BUT I JUST WANTED TO GIVE YOU ALL A REFERENCE OF THE VARIOUS PROJECTS THAT HAVE BEEN IDENTIFIED, THE VARIOUS NEEDS.

AND SO IT'S BROKEN DOWN. I'M NOT REALLY GOING TO REFERENCE THIS, BUT IT'S REALLY JUST FOR YOU ALL TO HAVE. BUT IT'S BROKEN DOWN BY PROJECT TYPE. AND WE'RE GOING TO WALK THROUGH THESE DIFFERENT PROJECTS. OKAY. SO YOU DON'T NECESSARILY HAVE TO FOLLOW ALONG WITH THIS PARTICULAR HANDOUT. BUT AGAIN, IT'S ALL OF OUR CIP NEEDS AT THIS POINT. SO JUST TO GIVE YOU A QUICK OVERVIEW AGAIN ABOUT THE DIFFERENT KIND OF PROJECTS THAT WE HAVE AND THE DIFFERENT FUNDING SOURCES FOR THESE PROJECTS. SO STARTING WITH TRAFFIC, STREETS AND SIDEWALKS, AS YOU KNOW, WE DON'T HAVE A REGULAR FUNDING STREAM FOR THEM, MEANING WE DON'T HAVE LIKE A STRAIGHT STREET MAINTENANCE FEE OR ANY KIND OF DEDICATED FEE THAT WOULD OTHERWISE COVER

[01:10:04]

THESE ARE FUNDED BY UTILITY RATES. SO WHAT FUND THAT THE CASH THAT CAN BE SUPPORTED TOWARDS UTILITY INFRASTRUCTURE IS WHAT'S TRANSFERRED OVER FOR UTILITY CIP. AND USUALLY WE TALK ABOUT 3 TO 5 MILLION IS WHAT THE FUND CAN SUPPORT. OF COURSE, AS WE KNOW, WATER IS A PRECIOUS RESOURCE. AND SO PROTECTING OUR LINES WITH THE MODERN MATERIALS AND SUCH IS, IS VERY IMPORTANT. AND, YOU KNOW, THE CITY IN ITS HEYDAY WAS BUILT IN THE 70S AND THE 80S. WE SAW A LOT OF BOOM BACK IN THAT TIME FRAME. SO AS YOU CAN IMAGINE, THESE INFRASTRUCTURE, ABOUT 40, 50 YEARS OLD, AND WE ARE REPLACING AND DOING THE DIFFERENT THINGS THAT WE CAN IN ORDER TO GET THEM UPDATED. BUT WE HAVE A LOT OF OLDER ASSETS IN THE GROUND ALLEYS THAT IS FUNDED BY SANITATION FUNDS. SO ON THE GARBAGE, THOSE THAT HAVE ALLEYS AND PAY A HIGHER GARBAGE RATE GOES TO SUPPORT REPLACING THOSE ALLEYS. SO THAT FUND GIVES ABOUT 200 000 FOR ALLEYS. AND THAT IS A PROJECT ABOUT ONCE EVERY OTHER YEAR. AND DRAINAGE, OF COURSE, IS SUPPORTED BY STORMWATER FEES. WE HAVE APPROXIMATELY 23 MILES IN OUR 11.2MI■!S CITY OF CREEKS AND STREAMS. AND SO THE DRAINAGE, THE PROJECTS THERE ARE REALLY FOCUSED ON OBVIOUSLY FLOOD MANAGEMENT, BUT ALSO PROTECTING OUR ASSETS AS WELL. SO JUST KIND OF WALKING THROUGH SOME OF THE PROJECTS ALREADY KIND OF GONE OVER ABOUT WHAT HER CRITERIA IS IN TERMS OF RANKING THESE. SO WE WANTED TO SHOW YOU BY PROJECT TYPE, BASED ON THEIR RANKING, BASED ON THE COST AND WHAT THE PROJECTS ACTUALLY ARE. SO THESE ARE PLANNING AND ENGINEERING PROJECTS. SO THEIR FIRST TOP ONE TOP PRIORITY PROJECT I CAN'T SPEAK SORRY, IS THE COMPREHENSIVE RATE STUDY THAT SHE TALKED ABOUT. AGAIN THIS IS A COMPREHENSIVE RATE STUDY THAT WOULD ENCOMPASS UTILITY RATES. IT WOULD ENCOMPASS STORMWATER RATES STREET MAINTENANCE. DOING THAT STUDY, IF A STREET MAINTENANCE FEE, FOR EXAMPLE, WANTED TO BE CONSIDERED AN IMPACT FEE. SO THE TOTAL PROJECT VALUE IS 750 000. BUT IF WITH YOUR SUPPORT, THAT WOULD BE SPLIT OVER MULTIPLE FUNDS, THE UTILITIES WOULD PUT IN A PORTION, DRAINAGE WILL PUT AN ABORTION. AND THEN ONE TIME FUNDS, WHICH WE'LL TALK ABOUT IN A LITTLE BIT WOULD PUT IN A PORTION. SO IT WOULDN'T BE THAT TOTAL COST. IF YOU HAVE ANY SPECIFIC QUESTIONS, SHE CAN CERTAINLY ANSWER THE PROJECTS, BUT I'LL JUST KIND OF BE GENERAL. THE NEXT PROJECT THAT'S A PRIORITY THERE IS DANIEL HIKE BIKE TRAIL TIE IN. SO THIS IS WITH THE CITY OF DESOTO. THEY ARE TAKING ON THE PROJECT OF TYING IN THE HIKE BIKE TRAILS FROM OUR CITY LIMITS THROUGH THEIR CITY ALL THE WAY TO I-35. SO THIS IS OUR PORTION THAT WE WOULD OWE TO THE CITY OF DESOTO FOR THAT PROJECT. AND THEN THE THIRD THING IS THE BETTER BLOCK TRAFFIC CALMING INITIATIVE. THIS IS SOMETHING ACTUALLY THAT WILL BE FUNDED BY ECONOMIC DEVELOPMENT, AND SHE CAN SPEAK TO THAT IF YOU NEED MORE INFORMATION ABOUT THAT. I BELIEVE THAT'S GOING TO COUNCIL OR HAS BEEN TO COUNCIL ALREADY THE PRESENTATION ON THIS. DO YOU WANT TO SPEAK A LITTLE BIT TO WHAT THIS IS? BRIEF COUNCIL THE LAST TIME ABOUT. BUT WE ALSO. WE ALL WE ALSO BRIEFED DC, EDC ABOUT IT, AND THEY WERE ALSO EXCITED ABOUT BRINGING IT BACK FOR APPROVAL. SO OUR GOAL IS TO BRING IT BACK IN FIRST MEETING IN AUGUST. SO THOSE ARE THE TOP THREE THAT WE'D LIKE TO GET FUNDED ARE TWO. TWO OF THE THREE ARE AT THIS POINT FUNDED IN 2027. AND THEN FOR THE LATER YEARS, THERE'S TWO OTHER PROJECTS ON THE LOWER ON THEIR PRIORITY LIST, BUT THEY'D LIKE TO DO AN ENGINEERING DESIGN MANUAL THAT WOULD BE PUTTING DUNCANVILLE DESIGN STANDARDS FOR ALL THE DIFFERENT PROJECTS THAT THEY HAVE, AND THEN KIND OF HAVE TO EXPLAIN WHAT THAT LAST ONE IS. FOR ME, THIS ONE IS THE SELF-SERVICE UTILITY MAPPING. WE CURRENTLY DO MISS A LOT OF OF THE EXISTING DATA IN TERMS OF THE SELF-SERVICE UTILITY OR THE BILLS THAT WE HAVE. SO WE DO RUN INTO A LOT OF ISSUES OF LIKE, WHILE WE

[01:15:07]

SOUNDS MORE FUN. BUT JUST AS YOU IF YOU LOOK AT THIS LATER, YOU WILL SEE, LIKE I SAID, I MAPPED OUT THE REST OF THE PROJECTS THAT CAME OUT OF THE WATER OR OUT OF THE MASTER PLAN.

SO THERE'S ABOUT $41 MILLION WORTH OF EITHER ASSET PROTECTION OR FLOOD MANAGEMENT THAT WE'LL HAVE TO PLAN FOR AND BE ABLE TO COVER AT SOME POINT WITH SOME SORT OF FUNDING RESOURCE. BUT AGAIN, THIS JUST SHOWS YOU OUR IMMEDIATE NEEDS, OKAY, FACILITIES JUST KIND OF BRIEFLY WALK YOU THROUGH THERE. WE'VE ALREADY TALKED ABOUT SERVICE CENTER. NO, THAT'S A HIGH PRIORITY, PARTIALLY FUNDED BY THE REMAINDER OF 2018 BONDS WE TALKED ABOUT, HOPEFULLY IN

[01:20:03]

YES, SIR. JUST REALLY QUICK. HOW DOES HOW DO ALL OF THOSE TURN TO PRIORITY ONES? KIND OF BASED ON THE EARLIER CONVERSATION WE HAD, THIS IN THIS CASE, THIS WAS BASED ON THE CONDITION ANALYSIS AS WELL. IF YOU HAVE THE SHEET. YEAH, IT'S IN THE MATERIAL. BUT YEAH, I JUST YEAH. SO THE SHEET SHOULD I DON'T KNOW IF THE, THE PACKAGE YOU HAVE HAS THE SCORING CRITERIA IN IT OR NOT. I DID NOT YOU DID NOT INCLUDE THAT. OKAY. SO WE DID HAVE A SCORING CRITERIA ALREADY ASSOCIATED WITH THE ORIGINAL SHEET WHERE IT SHOWS WHAT HOW DID THEY COME UP WITH THAT PRIORITY? BUT I WOULD SAY SOME OF THESE PROJECTS, I THINK THE REASON WHY IS LIKE, THERE WAS AN A STAFF INPUT AS WELL AS CONDITION AND AGE OF FACILITY, ETC. THAT REALLY ASSOCIATED THE REASON WHY THESE, YOU KNOW, ARE JUST NEEDS TO BE DONE. AND, AND I THINK THE GENERATOR AND THE CONTROLLER ARE, AND THE HVAC CONTROLLER HAS SOME, YOU KNOW, SAFETY AND ASPECT TO IT, BUT THE FIRE STATION TWO I THINK IT'S JUST BASED ON, I GUESS, STAFF PRIORITY REQUEST OR FROM THE PREVIOUS MASTER PLAN PRIORITIES. OKAY. NOT MASTER PLAN ADOPTED CIP. WE HAD THE BOND STEERING COMMITTEE TO LOOK AT THE BOND PROJECTS THAT THEY PROPOSED. I KNOW THAT WAS ONE AREA THAT THEY RECOMMENDED FOR. IF YOU HAVE FUND BALANCE, THAT WOULD BE A PROJECT WE WOULD RECOMMEND YOU USE IT FOR, BECAUSE THEY DID THAT TOUR AND GOT A GOOD VIEW, YOU KNOW, OF, OF, OF THE NEEDS OF THE STATION. MR. YOU HAVE YOUR HAND RAISED, SIR. YES. THANK YOU. AND CAN YOU ALL HEAR ME OKAY? YEP. YES. OKAY. SO BUT SOME OF THE ITEMS I'M NOT SURE ABOUT, BUT I, I CAN SAY FOR ESPECIALLY THE SERVICE CENTER AND NEW POLICE STATION, POSSIBLY SOME THINGS REGARDING FIRE STATION TWO THAT OVER VARIOUS WORKSHOPS AND DISCUSSIONS THAT THE COUNCIL HAS HAD OVER THE LAST COUPLE OF YEARS, THAT WE ALSO IDENTIFY SOME OF THESE AS HIGH PRIORITY ITEMS. SO THANK YOU. I WON'T GO NECESSARILY THROUGH THE REST OF THEM, BUT SOME OF THESE ARE BUILT INTO LIKE BUILDING MAINTENANCE CIP FOR THE SMALLER EQUIPMENT. BUT IN TERMS OF THE ACTUAL FACILITIES THEMSELVES, OBVIOUSLY THOSE ARE COME AT A HIGHER PRICE. SO AND THEN THAT'S JUST THE REST OF THE PRIORITIES BASED ON WHAT WAS ON THE FACILITIES PLAN. SO SO STREETS, STREETS IS ANOTHER AGAIN, PROJECT TYPE WHERE WE DO NOT HAVE A REGULAR FUNDING STREAM FOR. SO AGAIN, APPLYING THE SAME CRITERIA ON THE PRIORITIZATION FOR STREETS, RED BIRD, DUNCANVILLE ROAD TO CEDAR RIDGE WAS WAS RANKED NUMBER ONE.

AND THAT TOTAL PRICE IS JUST SHY OF 250,000 OR 2,500,000. TO COMPLETELY REDO THAT STREET.

ANY QUESTION ON THAT? YES. EXCUSE ME, MR. PENNEBAKER. THAT PROJECT RIGHT THERE DOES THAT.

DOES THE ANTICIPATING THAT WILL FIX THE PROBLEMS IN THE DRIVEWAYS ON THE EAST OR WEST SIDE OF OF DUNCANVILLE ROAD, TO THE EXTENT THAT ALL THAT PONDING OF WATER AND ALL THOSE PRIVATE DRIVEWAYS WILL GO AWAY. I AM HONESTLY, I DO NOT HAVE AN ANSWER FOR THAT UNLESS I HAVE A LOOK AT THE ISSUE THAT YOU'RE TALKING ABOUT. BUT THIS IS MEANT TO REALLY RECONSTRUCT THE STREET ITSELF. THE STREET PAVEMENT IS VERY POOR CONDITION. IT'S FAILED. BASICALLY ALL OF THESE LISTS IS FAILED CONDITION TO SOME EXTENT. IF YOU LOOK AT THEIR CIP NUMBERS, THEY'RE VERY

[01:25:03]

SO IT'S A PORTION OF DRIVEWAYS. AND IT'S SIGNIFICANT PONDING THAT AFTER A HARD RAIN WILL LAST AND PROBABLY AT LEAST MAYBE 12 TO 15 HOUSES UPON THAT WATER FOR A WEEK OR MORE AFTER A HEAVY RAIN. AND THAT SHOULD, YEAH, THAT THAT RECONSTRUCTION SHOULD ADDRESS THE DRAINAGE ISSUES AS WELL ON THE ON THAT STREET. SO NEXT TIME IT RAINS, IF IT DOES THIS YEAR. YEAH. IF I TAKE A LOOK AT IT, BECAUSE IT HAS BEEN A LONG STANDING PROBLEM THAT WASN'T FIXABLE TO THIS POINT. I WAS GOING TO ADD, WE DO GET A LOT OF CUSTOMER CITIZEN QUESTIONS ABOUT THIS PARTICULAR STRETCH OF ROAD TOO. SO, I MEAN, WE'RE WE'RE WE'RE AWARE OF IT HERE AT THE CITY HALL. THE OTHER SIDE TOO, WHEN YOU GO THROUGH THAT WHOLE INTERSECTION IS IT'S FUN TO.

DRIVE A JEEP AND HE'S DRIVING THROUGH THERE. HAVE FUN ON ACTIVE. YEAH. OKAY. YES, MA'AM.

SO I'M LOOKING AT THE PRIORITY AND THE RANKING FOR FACILITIES ON PAGE 37. ALL OF THESE ARE MOST OF THEM ARE ALL ONES. SO ARE WE SAYING THAT WE'RE GOING TO DO ALL THESE AT THE SAME TIME IN THE FISCAL YEAR 27, OR WE'RE BREAKING THEM OUT IN QUARTERS OF FISCAL YEAR 27. SO HOW DO WE DECIDE WHICH ONE WE. WE'RE NOT SAYING THAT THESE ARE ALL GOING TO BE ACCOMPLISHED IN ONE YEAR. OBVIOUSLY, THERE'S A LOT THAT GOES INTO, YOU KNOW, WE GOT TO PUT IT OUT FOR BOND AND ALL THAT KIND OF STUFF. BUT IT'S DETERMINED THE CRITERIA THAT THEY HAVE DEVELOPED AND THE INPUT THAT THEY'VE GOTTEN IN TERMS OF THE SCORE RANKS THESE AS A ONE. BUT IT DOESN'T MEAN THAT, YES, SHE DID THE EXERCISE. I CAN EMAIL THAT OUT. LIKE WITH THESE FACILITIES, FOR EXAMPLE, AS I THINK MR. KUNTZ MENTIONED, THIS WAS AN IMPRESSION THAT THESE ARE MOVING FORWARD. SO BECAUSE THEY WERE ALREADY IN WORK, A LOT OF THEM ARE ALREADY IN WORK, PRIORITIZED BY PRIORITIZED BY THE EXISTING CIP THAT WAS ADOPTED BY FORMER CITY MANAGER.

SO THIS WAS THE REASON SOME OF THESE ALREADY MADE IT TO THE LIST AS PRIORITIES, BECAUSE THEY ARE IN WORK NOW. THREE OF THEM ARE ALSO. THAT WAS PART OF THEIR PRIORITIES. BUT I WOULD SAY STAFF HAD INPUT RELATED TO SOME SAFETY CONCERNS, ETC. THAT WE WOULD DO THEM AS SOON AS POSSIBLE. IS THE IS THE THREE THAT YOU SEE HERE IN FIRE STATION TWO AND THE HVAC AND THE GENERATOR AND THE HVAC. THESE ARE THE THINGS THAT ALONGSIDE THE TWO PROJECTS THAT ARE ALREADY IN WORK, AND THAT'S WHY THEY CAME TO THE TOP BECAUSE THEY'RE ALREADY IN WORK.

SO WE HAVE THE BUDGET BOARD ALREADY WHEN WE PROJECTING TO ALREADY HAVE IT IN THE WHEN WE DID THAT $4 MILLION, YOU KNOW, THE, THE, FOR OUR FUND BALANCE POLICY, WE DID. YES. AND ONE THING THAT I WILL SHARE WITH YOU ALL, AND I JUST THOUGHT I JUST STARTED THINKING ABOUT IT HERE IS WHEN THEY WENT THROUGH THE BOND COMMITTEE EXERCISE A YEAR AGO, THEY DID DO A PRESENTATION SET ON THAT FIRE STATION. THAT'S A REALLY GOOD PICTURES OF SOME OF THE CONDITIONS, SO I'LL MAKE SURE I SHARE THAT WITH YOU ALL AFTERWARDS, JUST SO YOU HAVE THAT PERSPECTIVE TOO. BUT YEAH, THAT WAS THE PLAN THAT SOME OF THOSE MONIES WOULD GO TOWARD ADDRESSING SOME OF THE, THE HVAC AND SOME OF THE OTHER JUST. DO YOU HAVE IT SPREAD OUT THROUGHOUT THE YEAR, FISCAL YEAR 27, OR ARE WE LOOKING AT ROLLING RIGHT INTO THE NEW FISCAL YEAR AND THEN STARTING ON ALL THESE PROJECTS AT ONCE, ACTUALLY A ONE TIME FUND COST SO WE CAN START THE PROJECT, IT WOULDN'T NECESSARILY ROLL WITH THE OPERATING BUDGET. IT WOULD JUST BE IN ONE TIME FUNDS SO THAT WE COULD DO THE PROJECT ALMOST LIKE A CAPITAL PROJECT, IF THAT MAKES SENSE. SO, AND THE ONE THING I WANT TO CLARIFY ABOUT THIS RANKING, THIS IS NOT NECESSARILY SAYING WE HAVE TO DO IT. WE CREATED A FIVE YEAR PLAN. WE SAID BASED ON THESE RANKINGS AND THE INFORMATION WE HAVE TODAY, AND EVERY WORKSHOP AND EVERY WORK DONE SO FAR, THESE ARE WHERE WE SEE THESE PROJECTS FIT. BUT THERE IS NO AS AS WE AS I MENTIONED IN THE PRESENTATION EARLIER, WE NEED TO WORK ON THIS PLAN WITH A FINANCIAL ADVISOR WHERE TURNS THIS INTO REALLY AN ACTUAL WORK PLAN, BECAUSE THIS IS MORE BASED ON PRIORITIES THAT WE ARE RECOMMENDING, BUT NOT NECESSARILY. THERE IS A FUNDING SOURCE FOR EACH ONE OF THEM TODAY. YEAH, I JUST JUST ONE THING. I JUST WANT TO SAY, I RECOGNIZE AND APPRECIATE, YOU KNOW, WHAT THE WORK THAT THE BOND COMMITTEE HAS DONE. I RECOGNIZE AND I APPRECIATE WHAT MY COLLEAGUES HAVE DONE IN PREVIOUS COUNCIL SETTINGS. BUT ONE OF THE THINGS I JUST MAKE NOTICE OF, AND I JUST PASS IT ALONG FOR WHATEVER IT'S WORTH, I THINK IT'S A GOOD IDEA. AND

[01:30:02]

AND THEN THERE ARE A LOT OF MODULES IN TERMS OF LOOKING AT HOW TO SCORE, PRIORITIZE. YOU KNOW, THAT'S NOT REALLY IT'S LIKE SOMETHING THAT WE CAN'T, YOU KNOW, JUST REVISE OR WORK INTO OR TRY DIFFERENT MODELS. LIKE THESE COMMENTS ARE VALUABLE FOR US TO GO BACK AND LOOK AT POTENTIALLY OKAY, WE DON'T WANT TO SEE LIKE PRIORITY MULTIPLE PRIORITY ONE, UNLESS LIKE THEY GET THE SAME SCORE EXACTLY BASED ON THE SCORE. BUT YOU KNOW, WE JUST WANT TO SEE ONE, TWO, THREE, FOUR. WE CAN LOOK INTO HOW, HOW THAT CAN TRANSLATE. BUT AGAIN, I THINK WITH FACILITIES SPECIFICALLY, IT WAS UNIQUE. AND JUST IN TERMS OF THINGS THAT WERE ALREADY IN WORK, YOU KNOW, VERSUS SOMETHING THAT'S YEAH, I GET THAT. SO BUT BUT YEAH, BUT THAT'S SOMETHING. YEAH, NO, I THINK, I THINK YOU'RE RIGHT. THAT'S SOMETHING WE CAN GO BACK AND YEAH, FOR SURE. BUT THIS IS GOOD FEEDBACK AND WE APPRECIATE IT. IT'S A PROCESS FOR SURE THAT WE CAN FINE TUNE. AND IN FACT, WE WILL. SO MOVING ON FROM FACILITIES, TALK ABOUT STREETS. WE TALKED ABOUT THAT. SO TRAFFIC. SO IT'S A LITTLE DIFFERENT HERE. SO HERE'S THE THREE THINGS THAT WERE PRIORITIES FOR THEIR FOR THEIR ITEMS. THESE ARE NOT COVERED BY THE GRANT. SO WE ALREADY TALKED ABOUT. SO THE NUMBER ONE PRIORITY FOR TRAFFIC IS TO REPLACE AUDIBLE PEDESTRIAN SIGNALS. SO THAT'S YOU KNOW, YOU HEAR IT WHEN YOU TIME TO CROSS THE STREET, THAT KIND OF THING. SO THIS IS A SAFETY AND AN ADA COMPLIANCE RELATED THING.

THIS IS SOMETHING THAT CAN BE DONE OVER A COURSE OF A FEW YEARS, BUT THE TOTAL PRICE TAG FOR THE NEXT FIVE YEARS WOULD BE 234,000. SO, YOU KNOW, STUFF IS OVER SEVEN YEARS OLD. SOME THINGS ARE OUT OF WARRANTY. SO THIS WOULD BE A FUNDING OVER FIVE YEARS STRATEGY IN ORDER TO HIT ALL THOSE INTERSECTIONS. THE SECOND PRIORITY FOR TRAFFIC WOULD BE THE SCHOOL ZONE COMMS AND COMMUNICATION SYSTEM. SO THIS EQUIPMENT IS ACTUALLY 17 YEARS OLD AND THERE'S BEEN A LOT OF TECHNOLOGY ADVANCEMENTS SINCE THEN. SO THIS IS A ONE TIME COST TO REPLACE ALL OF THE SCHOOL ZONES AND FLASHERS AND ALL OF THAT, THAT GO WITH THAT. AND THE LAST ZONE COMMUNICATION SYSTEMS IS THAT COMMUNICATING BACK TO THE SERVICE CENTER? YES. OKAY. SO IT'S BEEN MONITORED BY THE THOSE FOLKS DOWN THERE. OKAY. THANK YOU. AND THEN LASTLY, THERE'S A VEHICLE DETECTION COMPONENT. THIS IS WHAT'S THE GRANT THAT SHE WAS TALKING ABOUT PREEMPTION. WHAT THAT MEANS IS THAT, YOU KNOW, IF THERE'S AN EMERGENCY AND THE FIRE TRUCK GOES THROUGH THE INTERSECTION, IT CHANGES THE LIGHTS BASICALLY, SO THEY CAN GO THROUGH SAFELY. THIS IS UPDATING, I BELIEVE, KIND OF LIKE THE CAMERAS UNDERSTANDING THE TRAFFIC FLOW. AND THEN WITH THIS UPDATED TECHNOLOGY WOULD HELP, LIKE BEING ABLE TO ADDRESS TRAFFIC CHANGES IN REAL TIME AND THAT KIND OF THING. BUT THIS WOULD BE A PRIORITY. THREE I THOUGHT I'D HEARD A WHILE BACK THAT THAT SYSTEM, NOT ONLY 12 YEARS OLD, BUT IT WASN'T WORKING. YEAH. SO YEAH, IT IS NOT ON SOME OF OUR, NOT ALL OF OUR INTERSECTIONS, BUT SOME OF OUR, OF OUR INTERSECTIONS IS NOT OPERABLE AT ALL BECAUSE OF THE SYSTEM BECAUSE, AND WE DO MANUAL UPDATES ON THEM BECAUSE THEY ARE INSTALLED LIKE 15 PLUS YEARS AGO, THINGS LIKE THAT. SO THAT THAT'S WOULD BE A PRIORITY, RIGHT? YEAH, IT SHOULD BE. BUT THE, THE PEDESTRIAN, THE AUDIBLE PEDESTRIAN SIGNALS AND THE SCHOOL ZONE FLASHERS ARE OUR TOP PRIORITY. AGAIN, THESE ARE LIKE ALL PRIORITIES, BUT THAT'S WHY THEY'RE LIKE ONE, TWO, THREE. BASED ON WHAT WE THINK THE LIMITED FUNDS WE HAVE. WHAT CAN WE START WITH FIRST AND THEN DO SECOND AND THIRD BASED ON THE INTEGRITY OF THAT SYSTEM OR THE NEED AND THE IMPACT. BASICALLY, WE HAD IMPACT AS PART OF THE PRIORITY SCORING BECAUSE OF THAT. TWO, BECAUSE SOME OF THEM ARE MORE IMPACTFUL THAN THE OTHER IN TERMS OF OPERATION DISRUPTION OR SAFETY CONCERNS AND THINGS LIKE THAT. DO YOU HAVE ANY GRANTS FOR THAT? NOT YET. WE KEEP LOOKING. SHE KEEPS LOOKING.

BUT SO JUST AS A REMINDER, LIKE THE GRANTS THAT SHE WAS TALKING ABOUT, IT DOES HELP TRAFFIC A LOT WITH WHEATLAND IS WHERE ONE OF THE HIGHWAY SAFETY IMPROVEMENT GRANTS ARE FOR. AND

[01:35:05]

BUT ALL I'M SORRY, ARE ALL PROJECTS PRICED THE SAME? NO, I THINK IT'S JUST IT REALLY DEPENDS ON THE LENGTH AND ALL THE I THOUGHT. SO I WAS JUST LOOKING AT THE WHAT'S NOW VERSUS LATER. SO IS THIS IS THIS THE NOW WAS. YEAH. NO THE NOW IT'S JUST A DESIGN. SO JUST TO CLARIFY, YOU MEAN THE ARE YOU TALKING ABOUT THE FY 27 NUMBER VERSUS THE 28 PLUS. OH YEAH. JUST TRYING TO FOLLOW, YOU KNOW, HOW YOU WERE TALKING ABOUT THE INFLATION AND CALCULATING THE COST OUT INTO THE FUTURE? I WAS JUST LOOKING AT IT LATER AND IT MADE ME WONDER WHAT'S THE NOW THE, THE OH, THESE ARE THIS, THESE ARE ESTIMATES BASED ON THE EXISTING COST ESTIMATES. WE HAD ONLY PUT A CONTINGENCY PERCENTAGE ON THAT OF. WE TRY TO TO BE, YOU KNOW, CONSERVATIVE. WE TRIED TO GO WITH 20% CONTINGENCY ON CURRENT ESTIMATES, BASICALLY TO INCLUDE THOSE. BUT THE FY 27 YOU SEE HERE, THAT'S ONLY 50,000. THAT'S ASSUMING OR RECOMMENDING THAT THIS PROJECT ONLY GET DESIGNED STARTING THAT YEAR. SO THE DESIGN COST OF THAT PROJECT IS 50,000 BECAUSE WE HAVE TO, BASED ON OUR LIMITED BUDGET SPREAD DESIGN ONE YEAR AND THEN CONSTRUCTION THE NEXT ONE YEAR, DESIGN CONSTRUCTION THE NEXT. AND THAT'S HOW IT LOOKS LIKE FOR THE REST OF THEM. SOME OF THESE THAT YOU'LL SEE ALREADY SAYS, YOU KNOW, PLANNED OR THERE, SOME OF THEM ARE PROJECTS THAT ARE JUST NEED CONSTRUCTION OR THEY'RE UNDERWAY, BUT THEY STILL NEED SOME FUNDS TO GET DONE. LIKE WE HAVE DESIGNS ALREADY, FOR EXAMPLE. YEAH. SO IS IT BIASED SCHEDULING BY CHANCE? NO OFFENSE, MR. COMBS, THAT THESE ARE ALL IN ONE DISTRICT. THAT'S WHERE ALL THE ALLEYS ARE. THAT'S THAT'S NOT TRUE. NO, NO. IS THIS A SCHEDULING. THIS IS A CONDITION BASED IT'S ROTATING AROUND THE CITY. AND THIS IS THE HIGHEST PRIORITY AREA. YEAH. IT'S BASICALLY, AS I SAID, IT'S CONDITION BASED, THE SCORE AND THE DATA ANALYSIS THAT WAS DONE ON THE CITY. THAT KIND OF CAME UP WITH THE RECOMMENDATION FOR THIS PROJECT IS REALLY, ESPECIALLY WITH ALLEYS AND STREETS RELIES HEAVILY ON THE DATA COLLECTION WE'VE DONE TWO YEARS AGO. AND THE ASSET MANAGEMENT PLAN, WHICH IS LIKE WORSE CONDITION. THESE ARE THE WORST CONDITION ALLEYS THAT WE HAVE AND THEIR WORST CONDITIONS BECAUSE THE GARBAGE TRUCK DRIVES UP AND DOWN. YEAH, YEAH.

SO IF THEY HAVE GARBAGE COLLECTION AND THE HANDOUT I DID GIVE YOU, YOU KNOW, FOR LATER, YOU CAN LOOK AT IT. I DO SPREAD THINGS OUT IN THE YEARS THAT IT MAKES SENSE. I DIDN'T WANT TO OVERWHELM THE SCREEN WITH FIVE YEARS WORTH OF COLUMNS HERE. SO JUST BE AWARE.

I DO HAVE IT LAID OUT IN THE HANDOUT I GAVE YOU. ALL RIGHT. UTILITIES, I'M OBVIOUSLY A HIGH PRIORITY AND THAT'S ALREADY IN MOTION. SO THAT'S WHY IT HAS THAT ONE PRIORITY RANKING. AND THEN ALL THESE OTHER ONES. THESE ARE INCLUDED IN THE 27 PLAN BUDGETED FOR UTILITY CIP FUNDS. ANNUAL PIPE BURSTING IS SOMETHING THAT'S IMPORTANT THAT THEY'RE VERY PROUD OF, I THINK, BECAUSE THAT REALLY DOES HELP WITH MITIGATION OF THE SEWER AND THINGS THAT FLOW INTO TRAY.

BUT AS YOU CAN SEE, THOSE ARE THE PRIORITIES THERE, AND THEY ARE ALL IN THE BUDGET. AND THEN LASTLY, PARKS, NOT LASTLY, THEY ARE A FUN BUNCH, YOU KNOW, BUT LAST OF THE CIP DISCUSSION. SO BART CAN CERTAINLY STEP UP AND SPEAK TO SOME OF THESE PROJECTS. BUT SO IN TERMS OF THEIR, THEIR, THEIR RANKING, THEIR NUMBER ONE RANKING WAS THE FITNESS EXPANSION AT THE REC CENTER.

AND OF COURSE, THAT'S COVERED BY ECONOMIC DEVELOPMENT FUNDS. AND REALLY WHAT THAT PROJECT ENTAILS IS KNOCKING OUT THAT WALL IN THE FITNESS CENTER SO IT CAN EXPAND THE ROOM AND BE ABLE TO REPLACE SOME OF THAT FITNESS EQUIPMENT AND STRENGTH EQUIPMENT. SO THAT'S WHAT THAT MEANS FOR FITNESS EXPANSION. A DOG PARK IS A NUMBER TWO PRIORITY THERE. NOW THIS IS AN OPPORTUNITY AREA. AND MR. STEVENS, I COULD SPEAK TO THIS, BUT SOMETHING THAT WILL BE COMING TO YOU VERY SOON IS THEY'RE GOING TO SCOPE THE HARRINGTON PARK PROJECT, BECAUSE WE'RE NO LONGER ABLE TO DO THE BRIDGE COMPONENT OF THAT PROJECT. SO THAT'S GOING TO FREE UP ABOUT 650 000. THAT'S REMAINING OF THOSE 2018 BONDS. AND SO IT WAS RECOMMENDED BY THE PARKS BOARD, I BELIEVE, TO THAT WOULD BE A GREAT USE OF, YOU KNOW, REALLOCATING THOSE

[01:40:01]

IS THERE ANYTHING ELSE YOU WANT TO KIND OF MENTION ON YOUR PRIORITY LIST HERE? NO, JUST JUST THE PRIORITY WAS SET BY THE PARK BOARD AND THE PARK BOARD. AND THE COUNCIL HAD A JOINT MEETING SEVERAL MONTHS AGO. AND AND THOSE PRIORITIES WERE PRESENTED TO YOU THEN.

THOSE HAVE NOT CHANGED. THEY HAVE TALKED MORE ABOUT GETTING THE DOG PARK STARTED WITH PHASE ONE, PERHAPS WITH THE ADDITIONAL MONEY FROM THE THE BOND ELECTION THAT JENNIFER JUST STATED. SO NO, I HAVEN'T YOU HAVE ANY QUESTIONS OF ME OR ANOTHER PROJECT THAT WE COULD POTENTIALLY USE. THE REMAINDER OF THE 2018 BOND FUNDS IS ON SOME REC CENTER GYM IMPROVEMENTS. SO THAT WOULD BE REPLACING THEIR FLOOR. THAT'S ORIGINAL TO THE BUILDING AS WELL. AND WE REQUESTED THAT LAST YEAR. AND THEN ALSO REPLACING THE GOALS IN THE GYM BECAUSE THEY'RE MANUAL RIGHT NOW. SO WE WANT TO HAVE A LITTLE MORE UPDATED, YOU KNOW, MORE ELECTRONIC WAY OF RAISING AND LOWERING THOSE, THOSE GOALS. SO THOSE TWO ITEMS COULD POTENTIALLY, WE COULD USE THE REST OF THOSE BOND FUNDS FOR. AND THEN LASTLY, THESE ARE THE THREE PROJECTS OR THE THREE YEARS THAT HE HAS ASKED FOR THE ECONOMIC DEVELOPMENT. SO IF YOU WANT TO HIGHLIGHT WHAT YOU HAVE REQUESTED FROM THEM FOR THE NEXT THREE YEARS, YOU TALKED ABOUT THE TWO FROM FISCAL YEAR 27, THE FITNESS CENTER EXPANSION, AGAIN, TAKING ON THE WALL, EXPANDING THE SPACE, REPLACING ALL OF THE STRENGTH EQUIPMENT. THE STRENGTH EQUIPMENT IS ORIGINAL TO THE BUILDING. SO IT WAS IN THE LATE IT'S FROM THE 1900S, I CAN SAY THAT. THEY WERE BOUGHT IN 98 OR 99. SO AND THEN MOVING FORWARD, WE HAVE SOME ISSUES WITH OUR PEERS AT LAKESIDE. YOU KNOW, WE WANT TO DO THE ARMSTRONG PARK RESTROOM REPLACEMENT. BACK WHEN WE DID THE SPLASH PAD, WE KIND OF RAN OUT OF DOLLARS DUE TO COVID AND ESCALATING COSTS. SO WE WEREN'T ABLE TO DO THAT. BUT THAT'S STILL A NEED AND THEN MAKE SOME IMPROVEMENTS TO LIONS PARK, BOTH THE BALL FIELDS AND AS WELL AS REPLACING THE RESTROOM. AND WE'VE TALKED TO THE EDC ABOUT THESE SPECIFIC SIX PROJECTS. GIVE THEM THE LIST. THEY SEEM TO BE ON BOARD WITH THESE SIX PROJECTS, BUT IT CAN ALWAYS BE IT WILL ALWAYS BE A FLUID DOCUMENT, I GUESS, AS WE MOVE FORWARD AS TO HOW PRIORITIES SHIFT AND CHANGE EVERY YEAR. SO. MR. KOONTZ, YOU HAD YOUR HAND RAISED. YES. THANK YOU. I JUST WANT TO EMPHASIZE THE IMPORTANCE OF LOOKING AT THESE PROJECTS IN TERMS OF PHASES AND PLANS, BECAUSE, YOU KNOW, WE'RE LOOKING AT THE STREETS AND UTILITIES AND THINGS LIKE THAT, AND WE'RE TALKING ABOUT A CAPITAL IMPROVEMENT PROGRAM AND TRYING TO MAKE SURE THAT WE'VE GOT IT PLANNED OUT AND PHASED OUT ALL THESE PROJECTS. AND, YOU KNOW, SIMILAR WITH THE PARK PROJECTS, WE TALK ABOUT THE RECREATION CENTER. I MEAN, ALL THE IMPROVEMENTS THAT NEED TO BE DONE THERE. I MEAN, WE'RE LOOKING AT MULTIPLE MILLIONS OF DOLLARS. IF WE LOOK AT, YOU KNOW, JUST ONE OF OUR PARKS, WE'RE LOOKING AT MULTIPLE MILLIONS OF DOLLARS OF IMPROVEMENTS. WE LOOK AT THE LAND PRESERVE, WE'RE LOOKING AT MULTIPLE MILLIONS OF DOLLARS OF IMPROVEMENTS. SO I JUST WANT TO EMPHASIZE ONCE AGAIN, OF US HAVING SOME KIND OF A PROGRAM PROGRAM OR DEVELOPING SOME KIND OF LONG TERM STRATEGIC PLAN FOR MAKING THESE IMPROVEMENTS AND PRIORITIZING ALL THOSE IMPROVEMENTS, ESPECIALLY, AGAIN, WITH REC CENTER PRESERVE AND JUST MAKING SURE THAT WE HAVE THAT PHASED OUT. SO WHEN WE LOOK AT WE HAVE THESE PRESENTATIONS AND WE DON'T SEE SIX, $7 MILLION WHEN WE GET DISCOURAGED, BUT INSTEAD WE LOOK AT IT IN TERMS OF, OKAY, THE NEXT PHASE FOR THIS PROJECT IS $300,000 OR $200,000. AND TO MAKE SURE AGAIN, THAT FOR THE PARKS, WE DO HAVE SOME KIND OF A PLAN IN PLACE. THANK YOU. AND TO SUMMARIZE, REALLY, CIP IN GENERAL, AGAIN, WE KNOW WE HAVE SOME WORK TO DO TO BE ABLE TO ACCOMPLISH ALL THE THINGS WE NEED TO DO TO BE ABLE TO FUND AND HAVE A, YOU KNOW, A REALISTIC PLAN. SO THOSE ARE THE THINGS WE'LL DEFINITELY BE WORKING ON IN THIS NEXT FISCAL YEAR TO BE ABLE TO COME FORWARD WITH THAT KIND OF INFORMATION AND BE ABLE TO SOLIDIFY HOW WE RANK, HOW WE PRIORITIZE AND ALL OF THAT. SO BUT THIS YEAR DOES HAVE AN OPPORTUNITY. SO AS WE'VE BEEN TALKING ABOUT ONE TIME FUNDING, AS YOU KNOW, WE HAVE EXCESS FUND BALANCE. WE'VE ALREADY TRANSFERRED SOME FUNDS OVER THIS FISCAL YEAR IN 26, FUND BALANCE THAT WAS ABOVE AND BEYOND THAT 150 DAY POLICY.

RIGHT. SO THAT WAS $4.1 MILLION. WE ALREADY MOVED IT OVER. ONLY A SMALL PORTION OF THAT HAS EVEN BEEN ALLOCATED. THERE'S ALSO AN OPPORTUNITY TO KNOWING THE NUMBER OF NEEDS THAT WE

[01:45:01]

OKAY, SO BEFORE WE KIND OF GET INTO TO THAT, I DO WANT TO HIGHLIGHT WITH WHAT'S ALREADY IN THE FUND. THERE ARE SOME PROJECTS WE WENT AHEAD AND BUDGETED FOR. SO TO UTILIZE SOME OF THIS 4.1 MILLION, VERY SMALL AMOUNT, AS YOU REMEMBER, WE TRANSFERRED SOME OVER TO TO GO AHEAD AND GET STARTED ON THE COMPREHENSIVE PLANNING ZONING UPDATE. THAT WAS ABOUT 250,000.

BUT SOME OTHER THINGS WE ALREADY ARE ACCOUNTING FOR. SO IT NEEDS TO DO A DOMAIN NAME AUDIT CLEANUP. SO THAT CLEANS UP OUR, YOU KNOW, OUR SPACE OUT IN THE ON THE INTERNET AND ALL THOSE DOMAIN NAMES THAT REFER BACK TO THE CITY OF DUNCANVILLE IN SOME WAY. WE WANT TO GO AHEAD AND ACCOUNT FOR THAT HIKE AND BIKE TRAIL, TIE IN THAT FOR THE CITY OF DESOTO. WE WANT TO ACCOUNT FOR THAT CITY MATCH ON THE HIGHWAY SAFETY IMPROVEMENT GRANT. THAT'S FOR CAMP WISDOM.

THAT'S THE SECOND GRANT THAT WAS AWARDED TO US FOR THAT. AS YOU MAY KNOW, WE'RE GOING THROUGH A WEBSITE IMPLEMENTATION REDESIGN. AND SO THERE'S A SMALL AMOUNT TO COVER THAT ONE TIME FEE. AND THEN ALSO WE WANT TO DO A COMMUNITY SURVEY. THIS IS SOMETHING THAT'S BEEN ON THE RADAR FOR CITY MANAGER WORK PLAN. SO THIS WOULD BE THAT COMPREHENSIVE SURVEY THAT A COMPANY WOULD COME AND DO AND BE ABLE TO ENGAGE IN SURVEY AND, AND BE ABLE TO PRODUCE THOSE RESULTS IN A METHODICAL WAY. SO THESE THINGS HAVE ALREADY KIND OF ACCOMMODATED IN BUDGET. HOWEVER, WE STILL HAVE AN OPPORTUNITY TO BE ABLE TO LOOK AT SOME OF OUR ONE TIME NEEDS AND CIP AND BEST USE SOME OF THESE ONE TIME RESOURCES TO GET SOME OF THESE OUTSTANDING NEEDS DONE. SO JUST BEFORE WE GET TO THIS EXERCISE, I'M GONNA WALK YOU THROUGH A COUPLE OF OTHER THINGS FOR ONE TIME FUNDING REQUEST. I KNOW WE'VE BEEN TALKING ABOUT A FIRE TRUCK OR A FIRE QUINT, I SHOULD SAY THAT'LL BE BROUGHT TO YOU PRETTY SOON, BUT I WANT TO MAKE SURE IT'S ON, YOU KNOW, HERE AS WELL TO TALK ABOUT. SO WE'VE COSTED IT OUT ABOUT JUST OVER $2 MILLION TO PURCHASE ANOTHER QUINT. WE TALKED ABOUT LIKE HOW THE COST OF THAT AND SINCE THE LAST TIME WE REPLACED ONE IS NEARLY DOUBLED. AND SO WE'VE DONE A LOT OF REPAIRS ON OUR RESERVE ENGINE. OBVIOUSLY, THE CALL VOLUMES THAT THEY HAVE, IT'S A LOT MORE WEAR AND TEAR ON THESE VEHICLES, AND IT'S GOING TO TAKE 2 TO 3 YEARS TO BUILD IT OUT SO THAT WE'VE GOT A WE'RE LOOKING AT 16 MONTHS. YES, 16, 2 TO 3 YEARS. THAT'S GOOD. THAT'S EVEN BETTER. THEY WERE TELLING US A LOT LONGER THAN THAT. SO I'M GLAD THAT THAT'S UPDATED. SO NOT 2 TO 3 YEARS, WHICH IS GOOD. BUT NEVERTHELESS THE THE ENGINE IS ALMOST 20 YEARS OLD. THAT NEEDS TO GO OFF THE LINE. WE TALKED ABOUT FIRE STATION TWO UPDATES. AGAIN, JUST BRINGING THAT BACK UP HERE. SO AGAIN KITCHEN UPGRADES OR BATHROOMS VEHICLE EXHAUST AGAIN THAT WAS RECOMMENDED BY THE BOND STEERING COMMITTEE TO USE SOME ONE TIME FUNDS FOR.

ADDITIONALLY, THE FIRE DEPARTMENT HAS REQUESTED A REPLACEMENT OF TWO LUCAS COMPRESSION DEVICES. THAT'S WHAT THEY LOOK LIKE. IT LOOKS VERY SMALL HERE, BUT THAT'S THE BIG THING THAT THEY WEAR THAT DOES THE MECHANICAL CPR COMPRESSIONS. SO WHAT THEY HAVE IS TEN YEARS OLD AND IT'S NO LONGER SERVICEABLE BY MANUFACTURERS. SO WE'D LIKE TO HELP THEM OUT TO GET THOSE REPLACED FOR THEM. SOME OTHER NEEDS THAT HAVE BEEN REQUESTED FROM DEPARTMENT. SO OUR FLEET DEPARTMENT GARAGE, THEY WANT TO PURCHASE TWO FOUR POST LIFTS.

IT'S $100,000. THIS PROMOTES OPERATIONAL EFFICIENCY AND SAFETY WITHIN THE GARAGE BECAUSE IT'S NO MORE GETTING OUT. OKAY, NOW I GOT TO PUT THE THING IN THE RIGHT PLACE AND THEN DRIVE ON IT. SO IT'S ALL KIND OF DONE FOR YOU. SO IT MAKES IT QUICK FROM THAT PERSPECTIVE. ANOTHER THING IS FLEET INSPECTIONS, MACHINE, THE SMALL AMOUNTS, $15,000. BUT WHAT THIS WILL ALLOW US TO DO IN HOUSE VEHICLE INSPECTIONS, WE DON'T HAVE TO SEND THEM OUT ANYMORE. WE CAN DO IT IN HOUSE, WHICH WILL SAVE US TIME AND MONEY AND EFFORT TO MAKE SURE THAT OUR ANNUAL INSPECTIONS ARE DONE ON TIME. AND THEN ANOTHER REQUEST IS TO CONSIDER PRE-FUNDING IT REPLACEMENTS FOR THE NEXT 3 TO 5 YEARS. WITH OUR CONSTRAINTS IN OUR GENERAL FUND.

BUT ONE TIME FUNDING MIGHT BE A GOOD OPTION TO GO AHEAD AND EARMARK SOME OF THOSE FUNDS, PUT IT ASIDE. THAT WILL BE USED OVER THE NEXT 3 TO 5 YEARS. CERTAINLY NOT AT ONCE. THERE'S A PLAN ON REPLACEMENTS, BUT IT JUST AGAIN, WITH THE STRAIN, IT DOES MAKE SURE THAT WE'RE ABLE TO GIVE THE REPLACEMENTS TIMELY. AND WITH TECHNOLOGY ADVANCING, ESPECIALLY POLICE AND FIRE AND THINGS THAT GO IN THEIR VEHICLE, THERE'S ALL KINDS OF FUN EQUIPMENT THAT NEEDS TO BE REPLACED AT SOME POINT. SO WE WANT TO MAKE SURE WE HAVE FUNDING AVAILABLE FOR WHEN THOSE DO COME UP. AND THEN WE HAVE SOME CITY COUNCIL CHAMBER DIGITAL UPGRADES WE'D LIKE TO DO, WHICH COSTS 100,000 OF THAT. WE'RE ONLY REQUESTING 5000 FROM ONE TIME FUNDS, BECAUSE THE OTHER HALF CAN COME FROM THE PEG FUNDS, WHICH IS THAT BROADCASTING, PUBLIC EDUCATION, GOVERNMENT FUND THAT WE GET FROM CHARTER AND WE GET FROM ANOTHER CABLE COMPANY THE SMALL PORTION THAT WE GET FOR THAT. BUT IT WOULD INCLUDE NEW SPEAKERS. PEOPLE CAN HEAR

[01:50:02]

OKAY, DOG PARK WE TALKED ABOUT COULD REDO THE 2018 BOND. SAME THING WITH THE REC CENTER GYM IMPROVEMENTS. AND THEN LASTLY THE RED BIRD LANE. NOW THIS IS JUST ME, JENNIFER THROWING THIS OUT THERE. BUT WE KNOW WE HAVE ANOTHER PORTION OF BONDS THAT ARE JUST SITTING OUT THERE NOT BEING USED RIGHT NOW. THE 1.5 MILLION THAT I KNOW WE HAD EARMARKED FOR CAMP WISDOM. AND I CAN'T SPEAK TO IF THERE'S ANY PLANS AT THIS POINT, YOU KNOW, WITH KNOWING THAT THAT PROJECT WOULD BE WELL OVER $8 MILLION TO DO WHAT WE KNOW WE NEED TO DO AT CAMP WISDOM. THAT MAY BE REDFORD LANE IS SOMETHING THAT DEFINITELY NEEDS TO HAPPEN. PERHAPS WE CAN REALLOCATE THOSE FUNDS FOR NOW AND COME BACK TO CAMP WISDOM WHEN WE HAVE A PLAN, ESSENTIALLY. SO THAT'S JUST MY, MY, MY THOUGHT FOOD FOR THOUGHT. SO THAT WOULD LESSEN THE ONE TIME FUND NEED RELIANCE FOR THAT IF WE ALL AGREE ON THAT. OKAY. SO YES, SIR. WHAT YOU JUST THREW OUT THERE, THE 4.1 MILLION ON ALL THOSE PROJECTS AS FAR AS OFF THE OFF THE FUND BALANCE. SO LET ME GO BACK.

YEAH. SO THE 4.1 MILLION IS WHAT WE'VE ALREADY TRANSFERRED TO ONE TIME FUNDS. THAT WAS THE OVER IN EXCESS OF THE 150 DAYS. RIGHT. SO WE'VE ALREADY MOVED THAT OVER. IT'S NOT ALL SPOKEN FOR YOU. OKAY. SO WE'RE GOING TO DO A LITTLE PRIORITY PRIORITY PRIORITIZATION. THANK YOU. I CAN'T TALK PRIORITIZATION, EXERCISE, BEING ABLE TO ALLOCATE HOW YOU WOULD ALLOCATE BASED ON THE NEEDS THAT WE'VE PROVIDED YOU, HOW YOU WOULD PRIORITIZE THOSE PROJECTS TO USE UP THAT 4.1 MILLION. OKAY. SO SOME OF THAT'S ALREADY BEEN ALLOCATED.

THAT SMALL PORTION OF IT'S BEEN ALLOCATED, ABOUT 400,000 OF IT HAS BEEN ALLOCATED, WHICH YOU JUST GAVE US CAME CLOSE TO 4.1. RIGHT. SO WE HAVEN'T ALLOCATED ALL OF THESE PROJECTS. THIS IS THE POINT I WANT TO GET TO. WE WANT TO GO THROUGH THAT EXERCISE. SO WE TOGETHER, YOU CAN HELP US DETERMINE HOW YOU WOULD BEST USE THOSE FUNDS. YOU'VE GOT THE 7 MILLION IN THERE, 7 MILLION. THIS IS JUST A REQUEST OF, YOU KNOW, WE'RE SITTING ON ANOTHER 7 MILLION THAT WE COULD POTENTIALLY USE WITH ALL THESE OUTSTANDING NEEDS. THIS MIGHT BE A GOOD RESOURCE TO USE FOR GETTING SOME OF THESE PROJECTS KNOCKED OUT. SO PUTTING THOSE TWO TOGETHER, JUST A LITTLE OVER $10 MILLION THAT WE COULD USE TO GO TOWARDS SOME OF THESE PROJECTS. OKAY. YES, SIR. MR. KUNTZ, SORRY. YES. THANK YOU. WHEN WE'RE TALKING ABOUT TRYING TO FIGURE OUT HOW TO SPEND DOWN THAT POTENTIALLY $9 MILLION ECONOMIC DEVELOPMENT FUND BALANCE, COULD SOMEBODY REMIND ME, I BELIEVE PARKS AND PUBLIC SPACE DO FALL UNDER ELIGIBLE USES FOR ECONOMIC DEVELOPMENT FUND, CORRECT? CORRECT. AND THE BUDGET THAT THE DCC ADOPTED HAD OVER $600,000 FOR CAPITAL PROJECTS FOR PARKS ALONE. SO YES, IT'S ELIGIBLE AND IT WAS FACTORED INTO AT LEAST THE FISCAL YEAR BUDGET THIS YEAR. AND THEN THE DEPARTMENT SUBMITTED A THREE YEAR PLAN, RIGHT, TO MOVE FORWARD. AND JUST ADD THAT YOU WILL SEE SOME CITIES THAT REALLY DO DEDICATE THEIR FOUR B MORE TOWARD PARKS PROJECTS. ET-CETERA YOU CAN DO BOTH WITH THE FOUR B YES. OKAY. OKAY. THANK YOU. YES, MA'AM. PLEASE. SINCE I. GO AHEAD.

[01:55:11]

NO, MA'AM. THE FUND BALANCE POLICY SAYS THAT MAXIMUM SHALL NOT EXCEED 150 DAYS. THE MINIMUM SHALL NOT BE BELOW 90 DAYS. WE HAVE THE FLEXIBILITY BETWEEN 90 OR WHATEVER. 90 REALLY IS OUR MINIMUM. THAT'S THAT'S WHAT WE WANT TO HAVE IN RESERVE. ANYTHING ABOVE THAT, I THINK, IS AT OUR DISCRETION, DISCRETION TO DIRECT US TO USE. SO IF WE DO THAT THIS YEAR, THAT SAYS THAT WE'RE HAVING TO MAKE AN EMERGENCY CHANGE OR SOME TYPE OF CHANGE TO OUR FUND BALANCE, WE CAN'T ALWAYS RELY ON FUND BALANCE MOVING FORWARD. WHAT WILL WE DO IN THE FUTURE TO ADDRESS THESE DEFICITS? BECAUSE WE CAN'T KEEP GOING BACK TO THE RESERVE. IT'S ALSO PART OF THIS EXERCISE, TOO. I MEAN, WE CAN DEFINITELY, YOU KNOW, AT THE END OF THE DAY, REALLY, WE SHOULDN'T LET ME SAY WE SHOULD. YEAH. I MEAN, AT THE END OF THE DAY, JUST LOOKING AT IT, YOU KNOW, YOU REALLY SHOULDN'T BE HOLDING ON TO THESE LARGE FUND BALANCES REALLY ANYWAY. YOU KNOW, IT'S OBVIOUSLY FROM OVER THE YEARS OF STUFF THAT MAY NOT HAVE HAPPENED. WE DIDN'T SPEND IT, ETCETERA. BUT YEAH, YOU'RE RIGHT. IF WE DO GO DOWN TO THE 90 DAYS, IT IS SOMETHING THAT, YEAH, YOU WOULD HAVE TO FIND OTHER WAYS YOU WOULDN'T BE ABLE TO USE ONE TIME PROJECTS, MUCH LIKE WE'VE BEEN DOING. YOU WOULD HAVE TO CUT SERVICES MORE, YOU KNOW, TO, TO ADDRESS IT. IF THERE WAS SOMETHING THAT, THAT, YOU KNOW, TO ADDRESS THOSE FUND BALANCES. SO IT IS SOMETHING TO KEEP IN MIND. BUT AT THE SAME TIME, ALSO, YOU KNOW, IT IS A PRETTY BIG THE 90 DAYS IS STILL STANDARD POLICY. SO HOW DO WE DEFINE BALANCE BUDGET? BECAUSE TO ME, BALANCED BUDGET MEANS THAT OUR REVENUES AND OUR EXPENSES ARE BALANCED TOGETHER.

BUT IF WE'RE GOING INTO THE RESERVE, IS THAT STILL CONSIDERED A BALANCED BUDGET THAT'S STILL CONSIDERED? YES. AND WE CAN WALK THROUGH EXACTLY HOW THAT WORKS. YEAH. SO. GOOD AFTERNOON. I GUESS IT'S NOT QUITE EVENING YET. RICHARD JACKSON, CFO MISS, GOOD. TO ANSWER YOUR QUESTION. WHAT WE WOULD BE LOOKING AT FOR A LOT OF THESE PROJECTS IS BASED OUT OF THE ONE TIME FUND. SO WE'RE GENERAL FUND WOULD BE INVOLVED WOULD WOULD BE IT WOULD BE AN ADDITIONAL TRANSFER OF GENERAL FUND DOLLARS TO THE ONE TIME PROJECT FUND. AND SO WHERE THAT HELPS IS IF THERE'S ANYTHING FROM A TIMING STANDPOINT THAT COULD TRANSITION FROM FISCAL YEAR 27 INTO 28, THOSE FUNDS HAVE ALREADY BEEN ALLOCATED IN IN THE ONE TIME FUNDS. SO THAT WOULD BE PART OF THE THE PROCESS OF THE BALANCED BUDGET IS THESE PROJECTS WOULD OPERATE IN THE ONE TIME PROJECT FUND. SO SEPARATELY FROM GENERAL FUND, YOU WOULD HAVE YOUR REVENUE AND YOUR EXPENDITURES AND PRESENT YOUR BALANCED BUDGET. AND THEN SEPARATELY, YOU WOULD INVOLVE A TRANSFER THAT'S COMING FROM FUND BALANCE. SO THAT ADDRESSES FOR THIS UPCOMING, LET'S SAY, IF WE COUNCIL DECIDES TO GO THAT WAY, THAT WOULD ADDRESS IT FOR THIS BUDGET. BUT WHAT HAPPENS NEXT? BUDGET, RIGHT? WE WOULD HAVE TO REALLY LOOK AT MORE, MORE, WHICH WE'RE GOING TO TALK ABOUT LATER. WE'D HAVE TO REALLY LOOK AT OUR SERVICES GOING FORWARD ON HOW WE FUND THAT. AND ONE THING TOO, I WANT TO POINT OUT, IF YOU IF WE DO GO THE ONE TIME FUND BALANCE, ONE TIME COST, IT REALLY SHOULD BE MORE STRATEGIC. SO I, WE KNOW WE NEED A FIRE. LET'S GET IT NOW. WE'VE GOT THE MONEY. WE DON'T WANT TO DO THINGS THAT ARE GOING TO KICK THE CAN DOWN THE ROAD. I THINK YOU JUST NEED TO BE VERY STRATEGIC IF WE'RE GOING TO DO THIS TO BUY, TO PURCHASE THOSE THINGS WE KNOW WE NEED NOW. BUT BUT YES, AND I HAVE TO CONTINUE TO KEEP PURCHASING OR CONTINUE TO KEEP PROVIDING SERVICE. YES. BUT TO ANSWER YOUR QUESTION, YOU'RE RIGHT DOWN THE ROAD. YOU DON'T YOU DON'T HAVE THAT ANYMORE. AND YOU DO NEED TO REALLY START KIND OF LOOKING AT YOUR SERVICES, ADDITIONAL REVENUE SOURCES, ETC. THANK YOU. SO, MR. BENJAMIN, QUESTION FOR YOU IS WHAT? AND MAYBE MR. JACKSON CAN ANSWER WHAT INTERNALLY ARE STAFF DOING AS WELL TO REVIEW ITS OPERATING BUDGET AND SOME OF THE NEEDS IT HAS THAT MAYBE NOT AS BIG AS A FIRE TRUCK OR BUT, YOU KNOW, SOME OF THESE OTHER THINGS THAT CAN REALLY BE CONTROLLED FOR IN BUDGET REQUESTS AND IN THE BUDGET DELIBERATION PROCESS THAT HAPPENS INTERNALLY. IS THERE ANY APPETITE OR ANY MEASURES ALONG THOSE LINES TO SEE WHAT COULD BE SHIFTED, LOOKING AT, YOU KNOW, VACANCY SAVINGS OR, YOU KNOW, ALL THOSE OTHER THINGS THAT UNIVERSE BEFORE IT EVER COMES HERE IN SOME INSTANCES TO THAT'S REALLY KIND OF WHAT WE'VE BEEN DOING WITH OUR DEPARTMENTS OVER THE LAST, YOU KNOW, SEVERAL MONTHS. AND

[02:00:03]

[02:05:02]

OKAY. SO WE'RE GOING TO DO SOMETHING A LITTLE OLD SCHOOL NOT USING TECHNOLOGY FOR THIS.

I'M SORRY. MR. YOU HAVE TO GIVE US YOUR FEEDBACK, BUT LET ME LET ME. YES. GO AHEAD. SORRY.

GO ON. YES, YES, I SEE WHAT'S COMING. OKAY. AND I'M GOING TO BE THE BAD GUY HERE, BUT I'M ONLY ONE. OKAY. SEVEN. WE'VE DONE THESE EXERCISES BEFORE, AND THIS ISN'T SPUR OF THE MOMENT BECAUSE WE SPENT A GOOD AMOUNT OF TIME WITH YOU GOING OVER ALL OF THESE. AND I THINK I LIKE WHAT I SEE UP THERE, BUT I DON'T THINK THAT WE'RE GOING TO WE WILL HAVE A PRODUCTIVE RESULT UNLESS WE CAN TAKE THESE AND SPEND TIME WITH OUR NOTES AND WITH THE INFORMATION YOU PROVIDED, WHERE WE EACH CAN INDIVIDUALLY ASSESS RATHER THAN MAKING A SPUR OF THE MOMENT DECISION. BECAUSE EVEN THOUGH WE'VE COVERED THEM TO ME, IT'S STILL GOING TO BE SPUR OF THE MOMENT BECAUSE. WE'RE NOT GOING TO HAVE REALLY TIME WITHOUT BEING HERE UNTIL 9:00 TONIGHT, WHICH I DIDN'T PLAN ON UNLESS SOMEBODY KNOWS BETTER. OKAY, I JUST SO LET ME LET ME ALLOW YOU ALL TO DEBATE, TO DEBATE THIS BECAUSE THAT'S, THAT'S NEVER I AGREE, I WOULD AGREE AND ALSO AS THE, AS THE NEW PERSON, I WOULD LIKE THE OPPORTUNITY TO KIND OF GO THROUGH THE INVENTORY AND SOME OF THE THINGS. SO SORRY. YOU'RE RIGHT. MR. MCBURNETT GET A COMMENT.

NOPE. OKAY. MR. COATES. NO, I AGREE MAYOR. OKAY. SO MAYOR, TO THAT POINT, I APOLOGIZE.

RICHARD. MAYOR, TO THAT POINT. IN TERMS OF WHAT PERIOD OF TIME WOULD BE SUFFICIENT FOR THIS GROUP TO BE ABLE TO REVIEW AND PROVIDE PRIORITIZATION BECAUSE WE, THE ONE OF THE ONE OF THE TAKEAWAYS THAT WE WANTED TO HAVE FROM THIS EXERCISE IS AS WE'RE FINALIZING OUR PROPOSED BUDGET, WE WANTED TO MAKE SURE THAT WE HAD THE PROPER INPUT FROM THIS BODY IN TERMS OF WHERE THOSE PRIORITIZATIONS LANDED. WITH RESPECT TO SOME OF THESE PROJECTS, I'LL TAKE INPUT FROM HOW LONG YOU ALL WOULD THINK THAT YOU'D NEED TO, BECAUSE WHAT WE'RE DOING HERE IS WE'RE LOOKING AT NUMBERS AND WE'RE LOOKING AT EACH INDIVIDUAL PERSON'S VIEWPOINT OF WHAT'S IMPORTANT. SO MONEY MAY NOT MATTER ON CERTAIN THINGS LIKE, WELL, I THINK WE ALL WOULD AGREE THAT THE QUINT IS A PRIORITY, BUT AFTER THAT, WE'VE GOT TO START FIGURING OUT WHERE EVERYTHING FITS IN. WHAT DO YOU THINKING TIME WISE? SO IT LOOKS LIKE ON THIS CALENDAR AND PLAN THAT YOU HAVE TO PRESENT US A PROPOSED BUDGET BY JULY 31ST, RIGHT? YOU HAVE TO GET IT TO US. YES, MA'AM. SO WHY DON'T YOU PRESENT WHAT YOU CURRENTLY HAVE AND WHAT YOU KNOW, AND THEN PRESENT A LINE ITEM THAT SHOWS THAT WE STILL HAVE THESE UNIDENTIFIED FUNDS TO ALLOCATE TO THIS GROUP OF OPTIONS. IF YOU COULD DO SOMETHING LIKE THAT, THAT WAY,

[02:10:05]

SO DON'T FEEL LIKE YOU HAVE TO GIVE IT TO US BY JULY 31ST, BECAUSE AT THAT POINT, IT IS YOUR BUDGET TO MAKE CHANGES AS YOU FEEL NECESSARY. BUT WELL, WHAT WE WE COULD WELL, WE COULD PUT THE BUDGET TOGETHER AND HAVE A DISCUSSION AT THE WORKSHOP IN AUGUST. WE STILL MEET THAT THAT CHARTER REQUIRED DEADLINE AS BY NO MEANS NOT A FINAL BUDGET. BUT IF WE WANT TO HAVE A MORE IN-DEPTH DISCUSSION ON WHAT GETS FUNDED AT ONE TIME, ETC. WE COULD DO THAT AT THAT BUDGET WORKSHOP. I MEAN, IT'S AN ALL DAY. WE'RE SCHEDULING IT FOR ALL DAY. SO WE COULD DO THAT IF COUNCIL'S COMFORTABLE. WE OBVIOUSLY WE MOVE FORWARD. THAT WOULD FIT THEIR NEEDS.

WELL. I MEAN, THAT'S YEAH. I TO MISS GOODEN AND MR. DAVIS'S POINT, WHAT I WAS KIND OF ENVISIONING AND I'M I, I WORK WELL WITH PROPS. SO I APOLOGIZE IF I'M USING MY HANDS TOO MUCH.

BUT WHAT WHAT BASED ON THOSE COMMENTS, WHAT I'M ENVISIONING IS THAT WE'D HAVE SOMETHING SIMILAR TO THIS SLIDE THAT WE HAVE A PRINTOUT ON. AND SO WE'RE STARTING WITH THE $4.1 MILLION WE WOULD HAVE SIMILAR TO THAT PREVIOUS SLIDE, BE ABLE TO ACKNOWLEDGE WHAT WE HAD PREVIOUSLY ALREADY ALLOCATED TO MR. DAVIS'S POINT. AND THEN THIS COUNCIL WOULD OFFER UP WHAT THEIR SUGGESTIONS WOULD BE FOR EITHER OR IF IF THEY'RE IN AGREEMENT IN TERMS OF IF YOU ALL ARE IN AGREEMENT WITH WHAT WE'VE ALREADY ALLOCATED AS PART OF THAT. 4.1, AND THEN WHAT YOUR PRIORITIZATION WOULD BE BASED ON THIS LIST OF PROJECTS. AND THEN I GUESS AS A SUBSEQUENT POINT. BEYOND THAT 4.1 MILLION THAT WE'VE ALREADY TRANSFERRED. SO JENNIFER HAS ALREADY TALKED ABOUT THE ADDITIONAL FUND BALANCE THAT COULD BE TRANSFERRED IF THIS, YOU KNOW, IF THIS COUNCIL AGREES TO DO SO, IF THAT WERE THE CASE, ARE THERE OTHER PROJECTS ON THIS LIST BEYOND THAT? 4.1 DO WE HAVE DO WE HAVE AN EXACT NUMBER OF. WHAT'S BEEN.

ALREADY. YOU SAID IT WAS A SMALL AMOUNT, ABOUT 400,000 400,000 IS ALREADY ACCOUNTED FOR. AND WE TALKED ABOUT THE FIRE TRUCK. THAT'S SOMETHING THAT Y'ALL ARE ALL IN AGREEMENT WITH NOW, RIGHT? RIGHT. SO THE SO, SO THE, THE QUINT, FOR EXAMPLE, WOULD BE 2 MILLION FROM THE 4.1. JUST AS AN EXAMPLE, IT'S ABOUT 386 ACCORDING TO THIS CHART, RIGHT? YES. YES, MA'AM. YES. SO LET'S GO BACK AND TRY TO DECIDE WHEN WE WOULD BE COMFORTABLE TO CAREFULLY ASSESS THIS INDIVIDUALLY. IF YOU WANT TO WORKSHOP IT, WHICH I KNOW THAT'S A BAD WORD. WE CAN WE CAN WORKSHOP IT, GIVE OURSELVES SOME TIME TO LOOK IT OVER, BE PREPARED FOR THE WORKSHOP, OR WE CAN JUST DO IT INDIVIDUALLY AND THEN SUBMIT IT TO THEM.

ALTERNATIVELY, WE CAN MOVE FORWARD WITH PUTTING TOGETHER A BUDGET AND THEN WE SUBMIT ANY

[02:15:01]

NOW, I MEAN, AS FAR AS. WE HAVE. YEAH, OKAY. WE PRETTY MUCH FINALIZED QUOTES THAT WE WERE ACTUALLY, IF IT'S GOOD BASED ON THERE, WE'LL, WE'LL BRING THAT FORWARD AS AN ITEM TO, TO AUTHORIZE. SO WE'LL BRING THAT FORWARD. OKAY. AND WHERE'S IT COMING FROM? WHERE'S IT COMING FROM? WHERE'S IT COMING FROM? WHERE'S IT COMING. OH IT'S COMING FROM METRO FIRE PRESS WHICH IS THE PARDON, PARDON. PARDON. THE FIRE TRUCK. IT'S NORTH DAKOTA NORTH DAKOTA. OKAY.

ALL RIGHT. I'LL SHUT UP. DID YOU SAY EARLIER, THOUGH, COUNCIL MEMBER DAVIS ABOUT THERE WERE THERE WAS ONE SLIDE WITH THE FOUR, I GUESS, PROJECTS, THE QUINT AND THE FIRE STATION, TWO UPGRADES THE GENERATOR. AND I THINK IT WAS THE LUCAS DEVICE, IF I REMEMBER.

RIGHT. YEAH. DID YOU GUYS OR DID YOU HAVE ALIGNMENT ON THOSE TWO OR DO YOU WANT TO ADD THOSE INTO THE MATRIX? YOU KNOW, I THINK THAT I THINK WE'RE ALIGNED ON THOSE. OKAY. ON THE FOUR. RIGHT. SO EVERYTHING TO DO WITH THE FIRE LINE. WHAT A LINE LIKE WE DID. I DIDN'T THINK WE DID. I THINK IT'S STILL ON THE I HAVE QUESTIONS ABOUT THIS TWO FOR THE FOR THE, THE 4386. RIGHT. YOU'RE TALKING ABOUT. 386 YEAH. IF WE COULD GO BACK TO THE. YEAH. WE JUST WANT TO MAKE SURE SLIDE RIGHT THERE. WE MOVE FORWARD. YEAH. RIGHT HERE. SO SO IN TERMS OF THIS THIS SLIDE HERE FOR COUNCILMAN COOTS, THE THE RIGHT SIDE OF THE. SLIDE 44. SLIDE 45. ARE YOU A IN ALIGNMENT IN TERMS OF THIS 386,000 THAT WE'VE ALREADY, I GUESS, IDENTIFIED AS PART OF OUR PROPOSED BUDGET? WOULD YOU PLEASE REMIND US WHAT CIVIC PLUS AND WHAT THAT COMBINATION IS? IF YOU WANT TO AND HAVE BENEFITS, JUST BECAUSE YOU JUST WANT TO DO LIKE A RECAP REMINDER, OKAY, OF THOSE PROJECTS. SO IT IDENTIFIED AT ONE TIME PROJECT TO DO AN AUDIT, TO DO A CLEANUP OF ALL THE DOMAIN NAMES THAT ARE OUT THERE IN THE UNIVERSE, HAVE TO POINT BACK TO THE CITY OF DUNCANVILLE HERE. AND OUR ASSISTANT DIRECTOR COULD PROBABLY TALK SPEAK TO WHY THIS IS IMPORTANT FOR IT FROM HERE, A LITTLE BIT FROM HIM. SO I HONESTLY BELIEVE THAT WE CAN REDUCE THIS AS WELL. RECENTLY, WE FOUND A WAY TO GET A HEAD START ON THIS PROJECT USING AN EXISTING. BASICALLY CONTRACTING WORK THAT WE HAVE WITH ANOTHER VENDOR. SO MAINLY THE GOAL OF THIS PROJECT IS TO FIND DOMAINS THAT WERE MAYBE NOT USING ANYMORE. LIKE THERE'S BEEN SOME INTEREST IN WHETHER OR NOT WE STILL NEED RETIRE IN DUNCANVILLE.COM, FOR EXAMPLE, AND SOME OTHERS THAT MAY NOT BE IN LINE WITH OUR GOALS. SO WE JUST WANT TO TAKE SOME TIME AND WORK WITH SOME DNS EXPERTS TO JUST LOOK THROUGH THOSE DOMAINS, SEE WHAT WE HAVE AND WHAT WE MAY NOT NEED ANY MORE. AND REALLY, THE ONE I WAS ASKING ABOUT WAS THE CIVICPLUS WEBSITE.

SO SPECIFICALLY, WHAT IS IT? HOW DOES IT BENEFIT US? SO OUR CURRENT WEBSITE IS POWERED BY POWER POWER SCHOOL. I BELIEVE IT IS. AND SO WE'RE GOING TO BE SWITCHING TO CIVICPLUS. THIS NEW WEBSITE WILL BE ADA COMPLIANT, WHICH IS A BIG PART OF WHAT YOU'RE SUPPOSED TO BE DOING NOWADAYS WITH WITH YOUR WEBSITES. AND UNDER THIS SCENARIO, IT'LL IT'LL BE READY TO GO BY THE NEXT FISCAL YEAR. FISCAL CIVICPLUS BEFORE. YEAH, WE HAVE A PARTNERSHIP WITH THEM.

WE ALREADY UTILIZE THEM FOR, YOU KNOW, LIKE OUR, OUR AGENDA, OUR AGENDA SOFTWARE, WHICH IS THE SAME COMPANY. SO THIS IS JUST FOR, JUST FOR OUR WEBSITE. YEAH. AND, AND THE, THE COMMUNITY SURVEY WAS SOMETHING THAT WAS ON, IT WAS ACTUALLY IN THE CITY MANAGER'S POSITION

[02:20:04]

HAND UP. YES. I'M GOOD. BUT I ALSO WANTED TO ASK IF I THINK CHIEF KENNEALY IS THERE. IF IF HE COULD ELABORATE A LITTLE BIT ON THE NEEDS AT FIRE STATION TWO. I KNOW IT KIND OF BRIEFLY EXPLAINS SOME OF THE UPGRADES THAT ARE NEEDED, BUT IF HE COULD GO INTO A LITTLE BIT MORE DETAIL ABOUT, YOU KNOW, JUST SOME OF THE ISSUES THERE AND, AND WHY THESE UPGRADES ARE NEEDED. YES, SIR. STATION TWO, WE HAVE A A. WE'VE ESTABLISHED A COMMITTEE OF REPRESENTATIVES ON EACH SHIFT TO PROVIDE A GOOD, SOLID FEEDBACK ON WHAT THE MEN IN THIS STATION LIVE AT, WHAT THEY WANT. AND CERTAINLY THERE'S CONCERNS WITH THE DORMITORY AND THE BATHROOMS. IT'S VERY JAM PACKED. THERE'S DISCUSSIONS OF THE BATTALION CHIEF MOVING OUT OF THE DORM, MOVING INTO THE OFFICE I'M IN CURRENTLY, AND WE JUST ADJUST BASICALLY DOWN THE HALL. AND THEN THERE'S ALSO THE ISSUE OF THEIR KITCHEN. IT IS VERY POOR CONDITION. AND SO WITH THAT, AND AS I MENTIONED, THE BATHROOMS ARE A REAL CHALLENGE. AND SO THOSE ARE THE BIG PARTS OF THE PROJECT. DEPENDING ON FUNDING AVAILABILITY, WHETHER IT'S FOR THE DIESEL EXHAUST, THE EPOXY FLOORING, GARAGE DOORS. YOU KNOW, IN THIS CASE, IT'S MENTIONED 450,000. THAT DOESN'T GO VERY FAR. QUITE FRANKLY, RELATIVE TO THE NEEDS OF THE STATION. BUT WE DID HAVE A MEETING BEFORE WITH CITY LEADERSHIP. WE STILL HAVE SIGNIFICANT FOUNDATION ISSUES AT STATION TWO, AND I WANTED TO MAKE SURE THAT EVERYONE IS COGNIZANT OF THAT, THAT WE'RE NOT OVERLOOKING THAT. BUT THE PRIORITY WAS TRYING TO IMPROVE THE LIVING CONDITIONS OF THE FIRE STATION. THE FOUNDATION HAS BEEN A LONG TERM CHALLENGE, AND WE DON'T HAVE ANY PRICING ON WHAT THAT'S GOING TO TAKE. THEY'VE ALREADY, IN YEARS PAST, PUT NUMEROUS PIERS UNDERNEATH THE FOUNDATION, BUT WE STILL HAVE ISSUES THERE OF SUBSIDENCE. BUT SO THIS IS JUST TRYING TO IMPROVE. AND I SAY JUST THE LIVING CONDITIONS OF STATION TWO, WHICH ARE VERY DEFICIENT, QUITE FRANKLY. JUST JUST A QUICK QUESTION, CHIEF. THE VEHICLE EXHAUST IS THE CURRENT VEHICLE EXHAUST SYSTEM IN THE BAY AREA NOT WORKING. THAT'S WHAT WE WANT TO ASSESS THAT.

HOW MUCH IS IT WORKING APPROPRIATELY OR IS IT NOT WORKING? AND NO ONE HAS AN ANSWER FOR THAT WITHOUT DOING AN ASSESSMENT ON THAT. GOTCHA. THANK YOU. NOW WE DID GET A PRICING BEFORE WE HAD TO REPLACE. IT WAS $82,000 FOR THAT PART. BUT WE NEED TO ASSESS WHETHER OR NOT THAT VENTILATION SYSTEM IS WORKING OR NOT. THERE'S QUESTIONS IF IT IS OKAY. THANK YOU. SO I GUESS I WANT TO ASK MY QUESTION EARLIER. I WAS THINKING ABOUT

[02:25:06]

FOR ME. OKAY, SO WHAT I'LL DO POST THIS. I'LL SEND OUT I'VE CREATED A SPREADSHEET JUST TO MAKE IT KIND OF EASY. YOU KNOW, YOU SAY YES, YOU WANT IT. NO YOU DON'T OR SOMETHING LIKE THAT. IT KIND OF DOES A TALLY FOR YOU AUTOMATICALLY. I'LL BE SURE TO SEND THAT OUT TO YOU.

YOU CAN PLAY WITH IT. SO YOU KNOW EXACTLY HOW MUCH FUNDING POTENTIALLY YOU HAVE TO WORK WITH. AND YOU CAN KIND OF USE THAT TO GAUGE. SO I'LL SEND THAT OUT. OKAY. MAY I INTERJECT VERY QUICKLY. I'M SORRY GUYS. I'M JAMES LEARY, THE ASSISTANT FIRE CHIEF HERE. I JUST WANTED TO POINT OUT WITH THESE LUCAS COMPRESSION DEVICES, THAT IS SOMETHING THAT ACTUALLY INCREASES SURVIVABILITY IN PEOPLE WHO HAVE FALLEN INTO CARDIAC ARREST. THAT'S A VERY IMPORTANT THING. YOU KNOW, IF YOU'RE RIDING AROUND IN THE BACK OF AN AMBULANCE AND YOU'RE RUNNING OFF TO THE HOSPITAL AND YOU'RE TRYING TO DO COMPRESSIONS ON SOMEBODY, THAT'S A VERY, VERY DANGEROUS SITUATION. YOU CANNOT HAVE A SEATBELT ON WHEN YOU'RE DOING THAT. OKAY. THESE TYPES OF THINGS WILL HELP TO HELP OUT THE FIRST RESPONDERS, BUT IT ALSO INCREASES SURVIVABILITY FOR THOSE VICTIMS THAT HAVE FALLEN IN THE CARDIAC ARREST.

THOSE ARE REALLY, REALLY IMPORTANT THINGS FOR US. IF WE DON'T HAVE FUNDING FOR THAT, I DON'T KNOW WHAT WE'RE GOING TO DO. BUT YOU BASICALLY STEP BACK TO THE TO THE DARK AGES WITH YOUR CPR AND ALL THOSE SORTS OF THINGS. SO JUST TO BE CLEAR, THEY'RE OPERABLE RIGHT NOW.

THEY'RE JUST NOT SERVICEABLE. AND THAT IS CORRECT. THAT IN AND OF ITSELF MAKES IT CRITICAL.

THAT'S A VERY DANGEROUS PLACE TO BE. THAT'S CORRECT. THOSE THINGS CAN GO DOWN, YOU KNOW, AND, AND THE ONES THAT WE HAVE, THEY WORK OFF OF BATTERY POWER. RIGHT. AND SO WE KNOW HOW THE DEGRADATION WITH ANYTHING THAT'S BATTERY POWERED, WHETHER IT BE A, YOU KNOW, A SCREWDRIVER, A DRILL OR WHATEVER THAT IS, YOU KNOW? YEAH. FIRE STATION TWO UPGRADES.

YEAH. WE'D LOVE TO SEE THAT IN LIVING CONDITIONS TO, TO BE ELEVATED. BUT TRULY, YOU KNOW, TO DO OUR JOBS AND TO DO THEM WELL, THOSE LUCAS COMPRESSION DEVICES ARE EXTRAORDINARILY IMPORTANT. THANK YOU FOR ADDING THAT BACK, I APPRECIATE IT. I AGREE WITH THAT, MAYOR. THANK YOU, CHIEF LARRY, FOR BRINGING THAT. I'D BE WILLING TO JUST LET'S GET THAT DONE ON IT.

REGARDING THE THE UPDATES AND THAT KIND OF STUFF, WHEN I STILL HEAR THAT THERE'S A FOUNDATION ISSUE AND THAT STUFF, I MEAN, I'M INTERESTED IN IT AND IT ALL GETTING DONE. BUT WHEN I HEAR THE FOUNDATION ISSUES, I THINK THAT NEEDS TO BE ADDRESSED. COUNCIL RIGHT NOW, I DON'T I DON'T THINK THAT WE'RE. IF WE'RE GOING TO GO WITH THE QUINT AND WITH THE EXPLANATION OF WHAT WE'RE SITTING WITH WITH THE LUCAS COMPRESSION DEVICES, ARE YOU WILLING TO GO AHEAD WITH THAT RIGHT NOW AND NOT LEAVE THAT OFF? THIS THIS TO ME SOUNDS LIKE IT. IF IT DID COME BACK AND ONE OF THESE MALFUNCTIONED OR WAS NO LONGER IN SERVICE, THAT I DON'T PERSONALLY KNOW, KNOWING WHAT I'M HEARING NOW, I DON'T PERSONALLY WANT TO PUT MYSELF IN THAT POSITION OF NOT MOVING AS FAST WITH THAT AS WE CAN. SO THAT'S GOING TO BE MY COMMENT ON THAT. TO HEAR FROM THE REFS BECAUSE WE'RE LOOKING FOR A CONSENSUS. YEAH, I AGREE WITH YOU. I AGREE WITH THAT. ALSO FIGURING OUT THE FOUNDATION SITUATION BECAUSE SOME OF THESE OTHER THINGS CAN BE IMPACTED BY WHAT YOU DO. CORRECT. THE FOUNDATION OR KITCHEN, BATHROOMS, PLUMBING AND ALL THAT. SO. MR. MR. COATES, YOU'VE HEARD THE COMMENTS ON THE LUCAS COMPRESSION DEVICE. DO YOU HAVE ANY COMMENTS OF YOUR OWN? NO, I.

MR. ADDING THAT BUT, YOU KNOW, MAYOR, WITH YOUR COMMENTS ABOUT THE COMPRESSION DEVICES, I ALSO KIND OF FEEL THE SAME WAY ABOUT THE VEHICLE EXHAUST THERE IN THE STATION. BUT YEAH, I'M DEFINITELY READY TO MOVE FORWARD WITH THE QUINT AND THE COMPRESSION DEVICES. BUT I'D ALSO AGREE WITH COUNCIL MEMBER MCKNIGHT ABOUT THE FOUNDATION AS WELL. THANK YOU. THANK YOU.

OKAY, ONE LAST HOUSEKEEPING. THERE'S NOTHING ELSE, MAYOR. JUST WANT TO MAKE SURE WE WILL BE COMING BACK AND DOING A CIP WORKSHOP WITH Y'ALL TO REALLY DIVE INTO THE FUNDING STRATEGIES AND RANKING. JUST THAT WAS OUR DESIRE. BUT JUST WANT TO MAKE SURE WE'RE ALL THERE'S CONSENSUS THERE TOO, MAYOR, THAT WE'LL COME BACK ON BE PART OF THE ANNUAL PROCESS.

YEAH. OKAY. OKAY. OKAY. SO I THINK WE GOT IT CLEAR WHAT WE'RE DOING HERE. SO WE'RE MOVING FORWARD WITH THE QUINT AND THE COMPRESSION DEVICES. WE'LL SEND YOU OUT THE LIST SO YOU CAN PLAY WITH HOW YOU PRIORITIZE AND WHAT YOU WOULD INCLUDE, WHAT YOU WOULD, AND THEY WOULD HAVE THE FUNDING AMOUNT AVAILABLE. SO WE'LL SEND THAT OUT TO YOU. AND THEN THAT'LL BE BROUGHT BACK TO US IN AUGUST. YEAH. OKAY. ALL RIGHT. GOOD. THANK YOU. THANK

[02:30:07]

AGAIN, WE CAN'T STRESS ENOUGH THAT THIS IS STILL PRELIMINARY AS WE ARE STILL DEBATING THINGS INTERNALLY. SO NOTHING IS OBVIOUSLY SET AND FINAL WITH THIS YET. SO TO START OFF, I WANT TO MAKE SURE YOU'RE WELL AWARE OF THE LEGISLATIVE OUTLOOK FOR THE 27TH SESSION.

AS YOU KNOW, IN THE LAST LEGISLATIVE SESSION, THEY WERE VERY ACTIVE WHEN IT CAME TO PROPERTY TAXES, AND THEY WILL DO SO AGAIN. SO THE GOVERNOR, AFTER HIS REELECTION, PUT OUT HIS BIG THING IN NOVEMBER ABOUT HIS FIVE STEPS TO OVERHAUL THE PROPERTY TAX SYSTEM PLAN. SO I JUST WANT TO MAKE SURE YOU'RE AWARE OF WHAT THESE ARE AND WHAT THE IMPLICATIONS COULD BE TO CITIES. AS YOU KNOW, THEY HAVE TARGETED SCHOOL DISTRICTS PRETTY HEAVILY IN THE LAST COUPLE OF SESSIONS. SO WE CAN ONLY EXPECT THAT CITIES ARE NEXT. SO NUMBER ONE OF HIS OVERHAUL IS CAPPING THE LOCAL SPENDING GROWTH TO THE LESSER OF POPULATION PLUS INFLATION OR 3.5%. SO WHAT NOW? HE DIDN'T WRITE A NOVEL ON WHAT THESE ALL MEANT, BUT THIS IS MY INTERPRETATION AT THIS POINT. SO WHAT HE'S TALKING ABOUT IS THE TAX RATE. OKAY. SO CAPPING THE TAX RATE TO BE, YOU KNOW, YOUR POPULATION GROWTH PLUS INFLATION. SO FOR A CITY OUR SIZE THAT'S NOT GROWING, IT'S GROWING DOWN. YOU'RE REDUCING, IF YOU WILL, OUR REVENUE GROWTH COULD BE LESS THAN THE 3.5%. BASICALLY WHATEVER INFLATION IS, WHATEVER MEASUREMENT THEY'RE USING OR CAPTURING INFLATION PLUS POPULATION OR 3.5%, WHICHEVER IS THE LESS IS WHAT WE WOULD BE CAPPED IN TERMS OF OUR REVENUE GROWTH. OKAY. THAT'S WHAT I'M INTERPRETING NUMBER ONE, TO ME. NUMBER TWO, THAT IT'S GOING TO REQUIRE A TWO THIRDS VOTE OF COUNCIL IF YOU'RE GOING TO INCREASE TAXES. SO EVEN THOUGH THE WAY OUR TAXES WORK AND OUR TAX RATE IS DECREASING, BUT WHEN VALUES GO UP, THE AMOUNT THAT THE CITIZEN PAYS GOES UP, IT WOULD REQUIRE.

SO IF YOU'RE PROPOSING SOMETHING MORE THAN THAT, NO NEW REVENUE, IT WOULD REQUIRE A TWO THIRDS VOTE. SO TWO THIRDS OF COUNCIL MUST VOTE IN FAVOR. RIGHT. SO NUMBER THREE, IT WOULD ALLOW PARTITION OF 15% OF REGISTERED VOTERS TO TRIGGER AN ELECTION TO LOWER THE RATE.

NUMBER FOUR, IT WOULD REQUIRE ALL PROPERTIES TO BE APPRAISED EVERY FIVE YEARS INSTEAD OF EVERY YEAR. SO THIS WOULD OBVIOUSLY GIVE RELIEF FOR A CERTAIN PERIOD OF TIME. AND THEN, YOU KNOW, YOU CAN IMAGINE WHAT WOULD HAPPEN IN FIVE YEARS. AND THEN NUMBER FIVE, IT WOULD LOWER THE APPRAISAL CAP FROM 10% TO 3% AND TO CAP ALL PROPERTIES. SO WHAT THAT MEANS IS THAT CURRENTLY WHEN THEY DO THEIR APPRAISALS AND SAY YOUR APPRAISAL IS 12% GREATER THAN IT WAS THE PREVIOUS YEAR, THE LAW CAPS IT AT 10%. SO THEREFORE YOUR TAXABLE VALUE CANNOT BE ANY HIGHER THAN 10%. AND SO WHAT THIS WOULD RECOMMEND, OR THIS OVERALL WOULD BE LOWERING THAT FROM 10 TO 3. OKAY. SO THESE ARE JUST HIS PLANS. OBVIOUSLY WE DON'T KNOW WHAT THE SESSION ULTIMATELY WILL DO. BUT NEVERTHELESS WE HAVE TO PLAN TO EXPECT IT. OKAY. WHEN IT COMES TO THE REVENUE, WE'RE ABLE TO GENERATE ALL THE TAXES. MAYOR, I'D LIKE TO MAKE A COMMENT. I REALLY THINK AS A GOVERNING BOARD, WE REALLY NEED TO PETITION BECAUSE THIS STUFF HERE IS NOT GOOD AND IT DOES NOT HELP US ANY. I WAS GOING TO MAKE A SUGGESTION TO NEXT YEAR THAT MAYBE MAYBE WE DO, YOU KNOW, HAVE YOU ALL GO DOWN FOR LEGISLATIVE DAY AND ENGAGE OUR ELECTED OFFICIALS A LITTLE BIT MORE, AND WE CAN BRING BACK A LEGISLATIVE PROGRAM THAT YOU ADOPT, WHICH GIVES GIVES STAFF THE ABILITY TO, TO WORK THROUGH AND WORK WITH THOSE LEGISLATORS AND GIVE YOU ALL THAT OPPORTUNITY TO HAVE YOUR VOICES HEARD. IF IT IS SOMETHING YOU ALL WANT TO DO OR SOMETHING OF CONCERN. SO BECAUSE IT WILL HAVE AN IMPACT, NO QUESTION ABOUT IT. I THINK, NUMBER FIVE, KNOWING THE APPRAISAL DISTRICT, WE CAN JUST EXPECT THAT WE'LL ALWAYS GET A 10% INCREASE. YEAH. ALLOW MY COLLEAGUE, MR. MCBURNETT, I DO THINK THAT WE AS A GOVERNING BODY, NEED TO HAVE A COLLECTIVE STRATEGY AND PLAN TO ADDRESS THIS. AND I'LL SAY TO INTERIM CITY MANAGER, I THINK IT'S ALSO WOULD BE BENEFICIAL IF WE DID SOME MODELING OF WHAT NUMBERS WOULD ACTUALLY LOOK LIKE AND WHAT

[02:35:04]

SO MOVING FORWARD, WE'RE JUST GOING TO BRIEFLY TALK ABOUT THE UTILITY FUND SO YOU CAN UNDERSTAND WHAT'S HAPPENING THERE. WHAT YOU SEE REALLY IS JUST A GRAPH OF OVER THE LAST COUPLE OF YEARS, WHAT OUR GROWTH HAS BEEN LIKE, REVENUES VERSUS EXPENSES. AS YOU KNOW, GOING INTO 27 WILL BE OUR LAST OF THE AUTOMATIC RATE INCREASE THAT WAS ADOPTED FIVE YEARS AGO.

SO THE WHITE BAR IS REVENUES. THE RED BAR IS EXPENSES. AND SO WE'VE BEEN GOOD AT KEEPING OUR REVENUES AND EXPENSES PRETTY BALANCED THERE. BUT THE EXPENDITURE GROWTH HAS HAS BEEN STEADILY CLIMBING. AND I'LL EXPLAIN WHY HERE IN JUST A SECOND. SO AGAIN OUR REVENUE ASSUMPTIONS IN 27 AGAIN FINAL YEAR OF OUR RATE ORDINANCE. SO WHEN WE DO THE COMPREHENSIVE RATE STUDY, HOPEFULLY WITH YOUR APPROVAL WE NEED TO STUDY THE RATES FOR THE FUTURE. BUT THIS WILL BE THE LAST YEAR OF THAT ORDINANCE. AND SO IT EQUATES TO THE WATER RATES ROUGHLY 9% ON THAT BASE RATE AND SEWER RATES 4.7%. THE EXPENDITURES ASSUME. SO THE TRINITY RIVER AUTHORITY, WHICH IS WHAT WE USE FOR OUR SEWER TREATMENT. AT THIS POINT, WE'RE PROJECTING A 17% INCREASE TO THEIR WHAT WE HAVE TO CONTRIBUTE TOWARDS THEM. AND THEY ARE IN THE PROCESS OF FINALIZING THEIR BUDGETS RIGHT NOW. THEY HAVE A AN INTERESTING, I SHOULD SAY, FISCAL YEAR CYCLE.

WE WILL HAVE A REPRESENTATIVE OUT, I BELIEVE, AT THE END OF JULY. MICHOD IS THAT CORRECT? WE WERE GOING TO HAVE TO COME OUT AND SPEAK TO COUNCIL AND MR. BRYANT, WHO'S. YEAH. SO LATER WE CAN ACTUALLY HEAR DIRECTLY FROM THEM WHAT THEY'RE GOING TO BE DOING, THEIR CAPITAL PROJECTS, UNDERSTANDING HOW THEY COME UP WITH THEIR CONTRIBUTIONS AND EVERYTHING.

BUT AT THIS POINT, IT DOES ASSUME A 17% INCREASE FOR THEIR SERVICES. THE DALLAS WATER UTILITIES JUST PASSED THEIR GAVE THEIR WHAT THEIR RATES ARE GOING TO LOOK LIKE FOR NEXT YEAR. SO THANKFULLY, ON THE VOLUME RATES, WE PAY A FIXED RATE AND WE ALSO PAY A VOLUME RATE. AND SO THE VOLUME RATE IS ACTUALLY REDUCED. BUT OUR FIXED RATE, WHICH IS THE HIGHEST PORTION OF OUR COST, IS 7.8% INCREASE. AND SO THAT IS LIKE OUR DEMAND RATE. SO WE HAVE TO KEEP UP A CERTAIN DEMAND. ALL THE POINTS OF ENTRY INTO OUR CITY. WE PAY A FIXED COST FOR THAT. AND THEN IT ASSUMES CONTINUAL SUPPORT OF CIP PROJECTS 3 MILLION. AND THEN WE'RE ALSO ASSUMING THE DEBT THAT WE WILL HAVE TO REPAY ON THE ARMY. AND THEN ALSO THE LEAD LINE INVENTORY. SO THOSE ARE THE ASSUMPTIONS WE'VE MADE IN THE UTILITY FUND. BUT SO I'M SURE YOU GET THIS QUESTIONS FROM YOUR CITIZENS. YOU KNOW, WE KEEP RAISING THE RATES EVERY YEAR. IT'S LIKE, WHY, WHY ARE WE RAISING THE RATES? SO I'M TRYING TO SHOW YOU AGAIN HOW ALMOST HALF OF THE EXPENDITURES GO DIRECTLY TO W. THAT'S FOR OUR WHOLESALE WATER. WE DON'T PRODUCE OUR OWN WATER. WE DON'T, YOU KNOW, HAVE ANY WAY OF MAKING WATER HERE. RIGHT. SO WE BUY IT WHOLESALE FROM THE CITY OF DALLAS, DALLAS WATER UTILITIES. OKAY. AND THEN THE OTHER PORTION OF THAT PIE THERE IS FOR TRINITY RIVER AUTHORITY. AGAIN, WE DON'T TREAT OUR OWN WASTEWATER HERE. IT GOES OUT TO TRA TO DO THAT FOR US. AND THEY HAVE A LOT OF CAPITAL PROJECTS AND THINGS COMING UP. SO ANYWAY, HALF OF THE EXPENDITURES COME FROM JUST THOSE TWO ENTITIES RIGHT THERE. AND SO WHEN THEY INCREASE OUR RATES, WE HAVE TO OBVIOUSLY PASS THAT ALONG. AND, AND SO BUT EVERYTHING ELSE YOU SEE IS VERY SMALL PORTION GOES TO DEBT, SMALL PORTION GOES TO CIP, AND THEN THE REST IS SALARY, BENEFITS AND OPERATIONS. SO BUT AGAIN, WE'LL HAVE TO COME OUT AND TALK ABOUT THAT. SO THAT'S JUST WHAT THE UTILITY FUND AT THIS POINT IS BASED ON.

ALL RIGHT. GENERAL FUND THIS IS WHAT WE'RE GOING TO END THE DAY WITH JUST REALLY TALKING ABOUT GENERAL FUND AS THAT IS OUR BIGGEST POT OF MONEY AND EXPENDITURES. AND WE HAVE THE

[02:40:02]

SO BUT WE WON'T REALLY HAVE FIRM DATA UNTIL THEY GIVE US A CERTIFIED TAX ROLLS TO BE ABLE TO TELL YOU WHAT THAT IMPACT WOULD LOOK LIKE TO THE INDIVIDUAL TAXPAYER. OKAY. ALL RIGHT. SO AT THIS POINT IN TIME WHEN OUR ASSUMPTIONS INCLUDE. SO PROPERTY TAX, WE'RE BUILDING IN THAT 3.5% INCREASE. OUR SALES TAX HAS BEEN VERY, VERY MINIMAL, I SHOULD SAY THIS LAST YEAR WITH JUST THE FLUCTUATIONS IN THE ECONOMY, GAS AND THINGS OF THAT NATURE. SO WE JUST HAVE NOT SEEN THAT GROWTH. 50% OF OUR TAX BASE FOR SALES TAX REALLY RESTS IN GENERAL RETAIL.

AND JUST THAT INDUSTRY, I SHOULD SAY, THE, YOU KNOW, THE BRICK AND MORTAR TYPE RETAIL, JUST IT'S BEEN IT'S BEEN PRETTY FLAT. SO VERY CONSERVATIVE. IF WE RECEIVE MORE, THAT'S GREAT.

BUT AT THIS POINT IN TIME, THAT PROJECTION IS ONLY 1% OVER THIS CURRENT YEAR. A BIG HIT TO THE GENERAL FUND IN TERMS OF REVENUE. WE TALKED TO THE COUNCIL ABOUT THAT INTEREST ALLOCATION. SO WE DID THAT BIG AUDIT WHEN IT CAME TO THE ASSET FORFEITURE, FOR EXAMPLE, AND WE HAD TO RETHINK HOW WE WERE ALLOCATING INTEREST JUST ACROSS THE BOARD. AND SO THE LAST COUPLE OF YEARS WE'VE HAD A LOT OF INTEREST COME INTO THE GENERAL FUND. SO THAT IS NO MORE. SO THAT RESULTED IN ABOUT $1 MILLION REDUCTION IN OUR REVENUE ASSUMPTIONS. OKAY. SO I MEAN, AT THIS POINT, A COUPLE OF MONTHS AGO, WE WERE PROJECTING REVENUES WOULD BE FLAT BECAUSE OF THAT REDUCTION. ON THE EXPENDITURE SIDE, THE THINGS THAT WE'VE ALREADY ASSUMED IN THERE. SO WE'VE TALKED TO THIS BOARD ABOUT TMRS BEFORE, HOW WE'RE WORKING THROUGH A MULTIYEAR STRATEGY TO GET TO THE MAXIMUM BENEFIT FOR OUR RETIREMENT SYSTEM. SO THAT NEXT STEP IS INCLUDED IN THE EXPENDITURE CALCULATION. ALSO, OUR MEDICAL INSURANCE PREMIUMS FOR EMPLOYEES. THIS WILL BE OUR SECOND YEAR ON CIGNA. AND WE HAD A RATE CAP. AND SO THEY'RE GOING TO BE PASSING ALONG THAT RATE CAP. SO 14% INCREASE ON THE MEDICAL INSURANCE PREMIUMS. WE'VE HAD TO INCREASE OUR LIABILITY AND WORKERS COMP PREMIUMS. WE UTILIZE TWO ML FOR.

THEY INSURE US FOR THAT. JUST SEEING, YOU KNOW, THE CLAIMS AND JUST THE NATURE OF INSURANCE AND EVERYTHING, WE'RE SEEING AN INCREASE THERE. ALSO OUR TRI-CITY PARTNERSHIP. SO THAT WOULD BE, YOU KNOW, THE JAIL, THE SWRCC ANIMAL SHELTER. THE OTHER CITIES ARE STILL FINALIZING THEIR NUMBERS, BUT WE'RE SEEING ABOUT A 3% INCREASE TO THEIR COST THAT WE PAY FOR THEIR SHARE. THEY, I THINK, HAD ORIGINALLY PROPOSED 6%, BUT YES, SO ORIGINALLY THE SOUTHWEST REGIONAL COMMUNICATIONS CENTER WAS PROPOSING ADDING TWO MORE DISPATCH STAFF. HOWEVER, ALL THE THE OTHER CITY MANAGERS. WHEN WE MET, WE THOUGHT IT WAS PRUDENT TO NOT DO THAT RIGHT NOW AND DO THEIR OWN TYPE OF MATRIX STUDY. SO THEY ARE GOING TO FUND A MATRIX STUDY. I THINK IT'S ABOUT 400 $0 SPLIT BETWEEN THE THREE CITIES. SO I SUSPECT THAT NUMBER WILL GO DOWN BECAUSE INITIALLY IT WAS ALMOST LIKE A $100,000 PLUS INCREASE.

IF YOU ADDED THOSE STAFF MEMBERS AND WE'RE LIKE, LET'S, LET'S KIND OF LOOK AT OUR LONG TERM STAFFING REQUIREMENTS FIRST BEFORE WE JUST GO OFF AND, AND ADD STAFF. SO I THINK THAT NUMBER WILL REDUCE. THEY'RE GOING BACK TO THE DRAWING BOARD OF THE CC. SO IF THAT'S THE CASE, I'M HOPING WE'LL BE CLOSER TO 3%. BUT WE'RE WAITING ON THAT BUDGET BACK FROM THEM.

BUT OVERALL WE WERE LOOKING AT AT LEAST WHAT HAS BEEN PROPOSED UP TO THIS POINT. WE STILL HAVE WORK TO DO AND REDUCTIONS AND EVERYTHING WE'RE GOING TO HAVE TO MAKE. BUT IT WAS ABOUT 1.6 MILLION MORE IN THE NON-PERSONNEL COST OVER THE 26 ADOPTED. SO THAT'S WHAT WE ARE WORKING THROUGH. THE BEST WAYS WITH YOUR FEEDBACK, HOW WE CAN BEST REDUCE THAT SO WE CAN

[02:45:04]

WE'LL LEAVE THIS UP HERE BECAUSE I'M SURE THERE'S A LOT OF SMART PEOPLE IN HERE. Y'ALL WILL BE ABLE TO RECOGNIZE THE DEFICIENCIES. SO BASICALLY WHAT WE WANT TO DO IS AND THIS SHOWS EXACTLY WHERE WE ARE. OKAY, WE HAVE 65 SWORN POSITIONS AVAILABLE TO US, BUT THIS IS EXACTLY WHERE WE ARE ALL RIGHT. NOW. WHAT WE WANT TO DO IS WE NEED TO SHORE UP OUR SUPERVISION. AND SO WITH THAT, WE WANT TO ADD A SERGEANT'S POSITION AND A LIEUTENANT'S POSITION. AND THE MATRIX STUDY WAS DONE. SORRY, THIS WAS THE LAST MINUTE ADDITION. OH, OKAY.

YEAH. OH YEAH. OKAY. SORRY ABOUT THAT. MATRIX STUDY WAS DONE FOR THE FIRE DEPARTMENT AND THE POLICE DEPARTMENT. AND IT STATED THAT, YOU KNOW, WE NEEDED TO FIX SOME AREAS WITHIN OUR SUPERVISION. SO THAT'S WHAT WE WANT TO DO. NOW TO DO THIS. WE UNDERSTAND THE PROBLEMS RIGHT NOW THAT WE'RE FACING AS FAR AS BUDGET AND EVERYTHING LIKE THAT. RIGHT NOW, WE HAVE SIX OPENINGS, WE HAVE SIX OPENINGS, AND WE'RE WILLING TO FREEZE THREE OF THOSE OPENINGS SO THAT WE CAN GET ANOTHER SERGEANT AND ANOTHER LIEUTENANT. LET'S GO BACK TO THAT AND GO BACK TO YOU. I'M SORRY. YEAH, BECAUSE I WANT TO SHOW THEM. SO IF YOU LOOK RIGHT HERE, YOU SEE THAT WE HAVE FOUR SHIPS, BRAVO DAYS, BRAVO NIGHTS, ALPHA DAYS, ALPHA NIGHTS. SO WE HAVE COVERAGE HERE AND GOOD SUPERVISION RIGHT HERE. WE HAVE ONE LIEUTENANT. THAT LIEUTENANT IS RESPONSIBLE FOR 21 PEOPLE. THAT'S NOT GOOD. WE NEED TO ADD ANOTHER LIEUTENANT'S POSITION.

WE ALSO NEED TO ADD ANOTHER SERGEANT'S POSITION FOR THE CID UNIT. WE HAVE ONE HERE, BUT HE WORKS NARCOTICS, SO HE GOES AFTER THE DRUGS, THE MONEY AND ALL OF THAT STUFF. SO IF YOU LOOK UP HERE, YOU SEE THE CRIME ANALYST REPORTS TO ME. THE CRIME ANALYST SHOULD BE REPORTING TO THE CID LIEUTENANT AND SERGEANT. BUT BECAUSE OF THAT SPAN OF CONTROL AND SUPERVISION, WE HAD TO MAKE SOME ADJUSTMENTS. SO WHAT WE NEED TO DO IS WE NEED TO ADD ANOTHER SERGEANT, ANOTHER LIEUTENANT POSITION, AND WE'RE WILLING TO FREEZE THREE POSITIONS NEXT YEAR SO THAT WE CAN GET THAT DONE. NOW, WHAT I'M HOPING IS THAT THAT WILL LEAVE US WITH THREE POSITIONS. AND I'M HOPING THAT Y'ALL WON'T TAKE THOSE OTHER ONES FROM US OR FREEZE THOSE OTHER ONES, BECAUSE WE'RE GIVING A TEST IN AUGUST AND WE WANT TO KEEP THOSE POSITIONS. WE NEED TO KEEP THOSE POSITIONS. IF WE FREEZE THOSE LAST THREE POSITIONS. YOU'RE TALKING ABOUT A BUZZ KILL AROUND THE POLICE STATION. THAT'S GOING TO HURT WITH EVERYTHING THAT'S GOING ON, THAT'S GOING TO HURT. SO WE NEED TO KEEP THE BALL ROLLING.

WE GOT GOOD MOMENTUM IN THE POLICE DEPARTMENT. WE'RE DOING SOME GREAT THINGS, AND I'M HOPING THAT Y'ALL LET US HOLD ON TO OUR LAST THREE POSITIONS AND ALLOW US TO GET THE OTHER SERGEANT AND LIEUTENANT'S POSITION. AND THAT PREVIOUS SLIDE WAS WHERE WE WERE. THIS IS WHAT WE'RE ALLOWED TO HAVE. AND THIS JUST SHOWS THE PROGRESS OF WHAT WE'RE TRYING TO GET TO OVER THE NEXT COUPLE OF YEARS. WHAT'S THE NET COST OF THE THREE POSITIONS? ALL, ALL ALL IN. BECAUSE IN EFFECT, WHAT YOU'D BE ASKING US TO DO WAS TO FUND THAT IN A LATER YEAR TO, TO REPLACE THOSE OFFICERS. SO WHAT'S THE DOLLAR AMOUNT ON THAT? SO AT THE TIME THAT I ESTIMATED THIS, THEY HAD FIVE VACANCIES AND IT WAS JUST OVER $500,000 FOR ALL FIVE. SO AN OFFICER COST ABOUT $100,000. OKAY. AND SO THE BIGGER PRIORITY IN THE DEPARTMENT AGAIN, WAS ADDING THE ADDING THE SUPERVISORY POSITIONS, THE LIEUTENANT AND THE SERGEANT, AND PROPOSED WHAT IF WE, YOU KNOW, SWAPPED, SO TO SPEAK. SO THEY ADD THAT LIEUTENANT AND SERGEANT AND NOT FUND THE THREE. BUT YES, TO YOUR POINT, AT SOME POINT DOWN THE ROAD, WHENEVER WE'RE ABLE TO, YOU KNOW, FUND THOSE THREE POSITIONS. BUT IT'S ABOUT 100,000 APIECE IS. BUT YOU WON'T BE HIRING ONE LIEUTENANT AND ONE SERGEANT AT 100,000 APIECE. RIGHT. SO THAT'LL OBVIOUSLY THEY MAY GET A HIGHER AMOUNT. SO TO GET THE LIEUTENANT AND THE SERGEANT COSTS THREE OFFICERS. OKAY. OKAY. SO JUST ABOUT 300,000 FOR THE TWO POSITIONS. SO THE STRATEGY WAS THIS FOR THAT. SO IN A SUBSEQUENT YEAR YOU WOULD NEED 300 000 IN ORDER TO BE ABLE TO ACTIVELY RECRUIT AND HIRE FOR THE THREE OFFICERS THAT YOU REPURPOSED OR TOOK OFFLINE IN ORDER TO GET THE LEADERSHIP AT SOME POINT. YES. BUT WE'RE ALSO, IF I CAN INTERJECT FOR JUST A SECOND, WE'RE ALSO LOOKING AT THE COPS HIRING GRANT. SO THAT WOULD HELP US LATER ON DOWN THE LINE. IF WE CAN GET THE COPS HIRING GRANT, AND WE'LL BE ABLE TO

[02:50:04]

PLUS IN A YEAR. LAST YEAR WE HIRED 13 OFFICERS. THAT'S NEVER HAPPENED. SO WE HAVE THAT MOMENTUM, IS WHAT HE'S SAYING. AND WE NEED. THIS IS THE VISION OF THE POLICE DEPARTMENT. YOU GUYS PAID FOR THE MATRIX REPORT. THIS IS THE VISION. WE'RE FOLLOWING THAT VISION. AND TO HIS POINT, I JUST WANT TO SAY ONE MORE THING. HE DID SAY WE HIRED 13 OFFICERS LAST YEAR.

THAT'S AN IMPORTANT FACT. WHEN YOU HAVE WHEN YOU HIRE 13 OFFICERS, THEY'RE NEW. THEY NEED THAT SUPERVISION. WE NEED THEM TO MAKE GOOD DECISIONS. YEAH, WE TRUST THEM TO GET OUT THERE AND DO THEIR JOB. THEY CAN. BUT WE ALSO WANT TO PROVIDE THEM WITH EVERYTHING THEY NEED AND SET THEM UP FOR SUCCESS. AND THAT INCLUDES SUPERVISION. I HEAR WHAT'S BEING SAID, AND IT'S NOT LIKE I WANT TO OPPOSE IT OR NEGATE IT AT ALL. I ALSO HEAR FROM THE CITIZENS SAYING THAT WE NEED MORE OFFICERS ON THE STREET AND WE NEED WE HAVE TO FOCUS SO MUCH IN A CERTAIN AREA THAT IS PULLING OTHER OFFICERS AWAY FROM INTERNALLY WITHIN THE CITY, BECAUSE WE'RE HAVING TO RESPOND TO 67 AND STAY OVER THERE IN THAT AREA AS MUCH. SO I, I DIDN'T WANT TO SAY DISTRICT FOUR, BUT A LOT. BUT THAT'S MY QUESTION. BUT YEAH, I, I'M STRUGGLING WITH HOW DO WE GIVE UP ONE NECESSITY TO GAIN ANOTHER NECESSITY? AND WE ALREADY IN A BUDGET CRUNCH, HOW DO WE ADDRESS THE DEMAND FOR POLICE OFFICERS AND AT THE SAME TIME PROVIDE THE SUPERVISION THAT'S NEEDED? IT'S YOU HAVE TO PUT A VALUE ON WHAT'S NEEDED.

SO WHAT'S NEEDED MORE YOUNG OFFICER OR A AN EXPERIENCED SUPERVISOR? I'M GONNA GO WITH THAT EXPERIENCED SUPERVISOR BEING FULLY STAFFED, WHICH WERE WAYS FROM DOESN'T NECESSARILY MEAN YOU'RE GOING TO HAVE MORE THAN FOUR OFFICERS OUT AT ANY GIVEN TIME. CORRECT? THAT'S TRUE TOO. YEAH, THAT'S TRUE TOO. EVEN WITH FULL STAFF, WE STILL HAVE FOUR BECAUSE SOMEBODY COULD BE SICK, SOMEBODY COULD BE OUT ON LEAVE OR SOMETHING. OKAY, WE'LL LOOK AT STATISTICALLY, WE'RE A PRETTY SAFE CITY. I MEAN, WE HAVE THINGS HAPPEN IN CRIME. YEAH.

THERE'S NO DOUBT THAT OUR OFFICERS, THEY GET. I'VE SAID IT TIME AND TIME AGAIN. THEY GET OUT THERE AND THEY GET OUT THERE, YOU KNOW, AND I, I LIKE THAT AND I WANT THEM TO GET OUT THERE. WE BROUGHT IN 13 THIS YEAR WHAT WAS OUR STARTING NUMBER AT THE BEGINNING OF THE YEAR? AND WHERE ARE WE CURRENTLY? DID ALL HAVE ALL OFFICERS STAYED OR HAVE WE HAD TURNOVER? WE'VE HAD SOME TURNOVER. AND BASICALLY THAT'S BECAUSE WE WANT THE BEST. JUST

[02:55:01]

I'M PUSHING IT. WE RECRUIT, WE GET OUT THERE, WE GO OUT TO THE BEST CANDIDATES SO WE CAN GET FULLY STAFFED. I DON'T WANT TO GIVE UP THREE SPOTS, BUT I'LL DO IT TO GET SOME SUPERVISORS.

OFFICERS. THANK YOU. OKAY. WHERE DO WE GO FROM HERE? OKAY. YOU KNOW OF THAT CHANGE THAT WE'RE PROPOSING? OKAY. JUST THIS GIVES YOU KIND OF THE SNAPSHOT, AND I'M CERTAINLY GOING TO WALK THROUGH EVERY SINGLE RIGHT NOW, BUT THIS JUST SHOWS YOU, OF COURSE, A HISTORICAL PERSPECTIVE. BUT WHAT WE'RE PROJECTING IN 27, JUST BASED ON OUR REVENUE ASSUMPTIONS AT THIS POINT IN TIME, BECAUSE OF THE LOSS OF THE INTEREST, OUR TOTAL REVENUE INCREASE IS ABOUT 1.69%. BUT LIKE I KIND OF SUMMARIZED BEFORE WITH THE ASSUMPTIONS THAT ARE ALREADY IN HERE. SO WITH THE INCREASE IN TMRS INSURANCE, JUST PRETTY MUCH THE PROPOSAL WAS WE'VE ALREADY GONE THROUGH A COUPLE OF YEARS OF REDUCTIONS, AND THE PROPOSALS DID ASSUME SOME OF SOME OF THOSE EXPENSES BEING ADDED BACK. SO. THE NET AT THIS POINT, THE PROJECTION IS JUST OVER 2 MILLION. SO THIS IS WHAT WE ARE INTERNALLY WORKING THROUGH TO FIGURE THE BEST WAY TO BALANCE THIS BUDGET. SO YOU'LL DEFINITELY HEAR MORE INFORMATION ABOUT ABOUT THIS. BUT THIS JUST KIND OF SHOWS YOU HOW THE EXPENSES BREAK DOWN. I WANT TO TOUCH ON TMRS WANTED TO EXPLAIN THIS AGAIN, WHAT OUR INTENTION AND WHAT THE, THE, THE MOMENTUM HAS BEEN WITH TMRS. SO FOR FISCAL YEAR 25, THIS COUNCIL APPROVED ADOPTING A BENEFIT PACKAGE FOR. THIS IS FOR CURRENT EMPLOYEES AS WELL AS RETIREES. THIS WAS THE BASE PACKAGE THAT WE COULD ADOPT AT THAT TIME. AND SO WE'RE TRYING TO WORK TOWARDS GETTING TO THE FINAL LEVEL, WHICH IS WHAT A LOT OF OTHER CITIES AROUND US HAVE. IT'S THE MAXIMUM BENEFIT THAT WE CAN OFFER. THIS IS SOMETHING THAT WE USED TO HAVE 20 YEARS AGO, BUT WE'RE ABLE TO SUSTAIN BECAUSE OF EVERYTHING THAT HAPPENED IN 2008, IF YOU REMEMBER BACK THAT FAR. AND SO WE HAVE BEEN LAGGING IN THIS AREA IN TERMS OF HOW WE COMPARE WITH OTHER CITIES OUR SIZE. SO ANYWAY, THE STRATEGY WAS START HERE, WHICH IS WHERE WE ARE TODAY. AND THEN STRATEGICALLY JUST BUILD THE BUDGET UP, IF YOU WILL, UNTIL WE'RE ABLE TO ADOPT THAT FINAL LEVEL, WHICH WOULD BE IN 2033, IS WHAT I'M PROJECTING. SO IN 27, WE COULD ACTUALLY ADOPT THE NEXT LEVEL.

WE WOULD HAVE BUILT UP THE FUNDING IN ORDER TO BE ABLE TO SUSTAIN THIS RATE HERE. SO WHAT THAT DOES IS BRING US UP TO 100% UPDATED SERVICE CREDIT FOR EMPLOYEES. AND I HAVE A DESCRIPTION OF WHAT THAT MEANS. SO BASICALLY AN UPDATED SERVICE CREDIT IS A BENEFIT TO ACTIVE EMPLOYEES. WHAT IT DOES IS IT COMPARE THEIR CURRENT CASH BALANCE WITH A HYPOTHETICAL BALANCE USING THEIR AVERAGE SALARY OVER THE LAST FEW YEARS. AND SO IF THAT HYPOTHETICAL IS BETTER AND GREATER, THAT EMPLOYEE IS AWARDED THAT DIFFERENCE IN THEIR CASH BALANCE, AND IT'S MULTIPLIED BY 50, 75 OR 100%, WHATEVER THE PLAN DESIGN IS. SO CURRENTLY WE'RE AT 50%. AND SO WE COULD ADOPT THE NEXT LEVEL FOR THE 27 FISCAL YEAR TO BE AT 100%. AND THEN THE COLA IS THE ANNUITY INCREASE FOR CURRENT RETIREES. SO TMRS HAS THE 30% LEVEL, 50% LEVEL, OR A 70% LEVEL. AND THIS DOES NOT MEAN A 30% INCREASE TO THEIR PAY. IT JUST MEANS A PERCENTAGE PERCENTAGE INCREASE OF INFLATION COMPARED TO WHEN THEY RETIRED. SO THAT IS SOMETHING WE WOULD RECOMMEND IN 27 AS WE CONTINUE TO WORK OUR WAY UP TO THE MAXIMUM LEVEL TO

[03:00:01]

AND THIS IS BEING PRETTY CONSERVATIVE TOO WITH REVENUES AND WITH EXPENSES. THIS IS ASSUMING THAT NOTHING CHANGES WITH TAXES. THIS IS ASSUMING THAT WE HAVEN'T MADE ANY ADJUSTMENTS TO EXPENSES TO BECOME BALANCED. SO THIS JUST IS LIKE KEEPING THE STATUS QUO BASED ON THE ASSUMPTIONS THAT WE KNOW RIGHT NOW. SO WE'RE GOING TO CONTINUOUSLY BE IN A DEFICIT. AND SO THAT IS THE CHALLENGE THAT WE ARE AGAIN, WORKING THROUGH. AND IT'S GOING TO BE A. A EXERCISE DEFINITELY INTO THE COMMUNITY EXERCISE WITH THIS BOARD OR THIS COUNCIL TO REALLY UNDERSTAND, YOU KNOW, WHAT, WHAT ARE YOUR NON-NEGOTIABLE TYPE SERVICES AND PROGRAMS? WHAT CAN WE DO WITHOUT? WHAT CAN WE REDUCE? SO THOSE ARE THE KIND OF HARD CONVERSATIONS WE'RE DEFINITELY GOING TO HAVE TO HAVE, BECAUSE WE HAVE TO BE SUSTAINABLE. ANY QUESTIONS SO FAR? KIND OF ON THAT. I MEAN, THAT'S JUST. ALL RIGHT. SO HERE ARE SOME, SOME, SOME STRATEGIES AND SOME THINGS WE CAN THINK ABOUT. YES. MR. KUNTZ, GO AHEAD. THANK YOU.

JUST, YOU KNOW, SO WE'VE SEEN THAT THE PAST COUPLE OF YEARS IN THE. MR. ABERNATHY, YOU KNOW, AT SOME POINT. BUT I WOULD LIKE FOR US TO HAVE SOME KIND OF A MORE DETAILED DISCUSSION ABOUT THAT, BECAUSE WE KEEP SEEING THAT. AND I KNOW WE'RE SAYING WE NEED TO BE THINKING ABOUT, YOU KNOW, HAVING THOSE DIFFICULT DISCUSSIONS, BUT I BELIEVE THOSE DISCUSSIONS NEED TO START HAPPENING SOONER THAN LATER. SO I'M GLAD WE KEEP BEING REMINDED OF THAT AND THE CHALLENGES THAT THAT ARE TO COME. BUT WE REALLY DO NEED OPPORTUNITIES TO REALLY TALK ABOUT, YOU KNOW, STRATEGIES TO BE PREPARED, YOU KNOW, FOR, FOR WHAT'S GOING TO HAPPEN. SO THANK YOU. I AGREE WITH THAT. I THINK REALLY, YOU KNOW, OBVIOUSLY, I THINK WE'RE GOING TO WE WILL GET TO THIS YEAR'S BUDGET. I MEAN, WE'VE GOT A COMPETENT TEAM. WE'VE GOT A COUNCIL THAT UNDERSTANDS THE SITUATIONS, THE PRIORITIES. BUT LONG TERM, WE REALLY DO NEED TO LOOK AT WHAT SERVICE LEVELS ARE PRIORITY FOR THE COUNCIL. OBVIOUSLY, WE NEED TO LOOK FOR OTHER REVENUE SOURCES TOO. I THINK THAT'S BEEN ON THE TABLE. WE'RE GOING TO TALK ABOUT SOME OF THAT TONIGHT. BUT YEAH, WE REALLY DO NEED TO LOOK AT WHAT'S LONG TERM HAVING THAT EXERCISE OF WHAT WHAT ARE THOSE PRIORITY SERVICES. AND THEN, YOU KNOW, KIND OF INTERNALLY AS WE GO ALONG, IF A, IF A, IF A POSITION BECOMES VACANT, EVALUATING, DO WE REALLY NEED THAT, THAT POSITION? IS THIS SOMETHING THAT CAN BE DONE BY A OUT OF THE DEPARTMENT OF SERVICE, ETC. BUT JUST HAVING THOSE CONVERSATIONS. BUT TO COUNCILMEMBER KUNTZ POINT, I MEAN, HE KIND OF REALLY HITS IT. I THINK WE REALLY DO NEED TO START REALLY THINKING ABOUT THAT LONG TERM, JUST IN GENERAL, OF COURSE, WE GOT OUR, OUR, OUR FRIENDS IN THE LEGISLATURE KIND OF MAKING US THINK ABOUT IT AS WELL WITH SOME OF THE THINGS THEY'RE THEY'RE PROPOSING. BUT JUST TO ANSWER YOUR QUESTION, YES, I DO HEAR WHAT YOU'RE SAYING, MR. ABERNATHY. UP THERE, IT SAYS REDUCTION OPTIONS DEPARTMENT REDUCED BUDGETS BY 5%, WHICH WOULD HAVE TO INCLUDE POSITIONS BASED ON THE EXERCISE WE DID. SO LET ME KIND OF WALK THROUGH THIS A LITTLE BIT JUST TO GIVE YOU SOME PERSPECTIVE. OKAY. SO WE'RE GOING TO TALK ABOUT SOME COST RECOVERY OPPORTUNITIES. THERE'S A COUPLE MORE PRESENTATIONS, SOME THINGS THAT WE COULD DO THAT MIGHT HELP RECOVER SOME OF OUR COSTS. IT'S NOT GOING TO SOLVE A DEFICIT ULTIMATELY, BUT IT CAN HELP RECOVER EXPENSES. SO WE'LL HAVE A COUPLE OF PRESENTATIONS ABOUT THAT. WE DID THROW OUT THERE SOME WAYS WE COULD LOOK AT REDUCING OPTIONS. NOT NONE OF THESE ARE IDEAL BY ANY STRETCH OF THE WORD. AND SOME, YOU KNOW, WE JUST DON'T WANT TO PUT ON THE TABLE AT ALL. BUT JUST WANT TO BE TRANSPARENT. SOME OF THE THINGS THAT WE THREW OUT THERE. SO DEPARTMENTS, WE GAVE THEM AN EXERCISE. OKAY, HERE'S YOUR NUMBER. THIS IS WHAT, 5% REDUCTION OF YOUR TOTAL EXPENSES. HERE'S THAT NUMBER. HOW WOULD YOU GET TO THAT NUMBER? THIS WAS, I SHOULD SAY, AN EQUITABLE EXERCISE. EVERYBODY'S DOING THE SAME THING, BUT IT'S NOT NECESSARILY POLICE AND FIRE ACCOUNT FOR 50% OF OUR BUDGET. YOU KNOW, THERE'S NO WAY THAT POLICE OR FIRE CAN EVEN OBTAIN A 5% REDUCTION WITHOUT CUTTING STAFF. WE DON'T WANT TO CUT PUBLIC SAFETY. WE DON'T WANT TO CUT FOUR FIREFIGHTER POSITIONS, WHICH IS WHAT THEY WOULD HAVE TO PUT IN THERE. 5% REDUCTION, RIGHT. BUT YOU CAN'T NOT THINK ABOUT POSITIONS AGAINST

[03:05:05]

ULTIMATELY, WE WILL GET BALANCE, BUT LIKE TO THE POINT WE HAVE TO BE ABLE TO COME BACK TO YOU AND SAY, HERE ARE THE PROGRAMS WE'VE IDENTIFIED. HERE ARE SOME OPTIONS OF HOW WE CAN CUT PERMANENTLY TO SUSTAIN MOVING FORWARD. BUT SO THOSE ARE THE THINGS THAT WE'VE BEEN WRESTLING WITH AT THIS POINT IN TIME. OKAY, SO LET'S HIT ON COST RECOVERY OPPORTUNITIES.

THEN I'LL HAVE QUESTIONS. OKAY. THE FIRST ONE, SHE BROKE OFF BACK TO YOU. I TEND TO CLICK AT THIS TIME. I HAVE A FEW MORE SLIDES. YEAH. OKAY. SO I'M PROPOSING THAT WE TAKE A LOOK AT LAURA MARTINEZ. BROADWAY. OKAY, SO THIS FIRST SLIDE RIGHT HERE JUST SIMPLY SHOWS THAT WE'RE UNDER CONTRACT WITH CENTRAL SQUARE. CENTRAL SQUARE WE USE THEIR CRY WOLF PLATFORM TO KEEP TRACK OF THE ALARM PERMITS, THE FEES AND ALL OF THAT STUFF. SO IF YOU LOOK AT THE BOTTOM DOWN HERE, YOU SEE FOR FY 25, THERE WERE A TOTAL OF 1010 FALSE ALARMS THAT WERE PROCESSED. OKAY. SO WHAT WE DID WAS WE LOOKED AT A DATE FROM MAY 1ST, 2025 TO MAY 31ST, 2026.

THAT'S A YEAR AND ABOUT A MONTH. SO DURING THAT TIME, THE PD RECEIVED 1326 TOTAL ALARMS. OUT OF THAT, 1308 WERE FALSE ALARMS. LET'S LOOK AT THE FIRE DEPARTMENT. AND CHIEF NEELY IS HERE. HE CAN TALK TO THIS. THEY RECEIVED 626 TOTAL ALARMS. OUT OF THAT, 506 WERE FALSE ALARMS. SO I DID A LITTLE CHECKING BEFORE I CAME IN HERE WITH THE THE US DEPARTMENT OF JUSTICE.

AND THEY HAVE ON THEIR WEBSITE THAT WHEN YOU LOOK AT THE ALARMS THROUGHOUT THE NATION, IT'S ABOUT 94, 98% OF THOSE ALARMS ARE FALSE ALARMS. SO LET'S LOOK AT OUR PERMIT FEES AND COMPARE IT TO THE OTHER CITIES. SO DUNCANVILLE IS $35 ACROSS THE BOARD. AND YOU CAN SEE WHERE DESOTO SITS, AND YOU CAN SEE WHERE CEDAR HILL SITS. SO WHAT I DID WAS I SAID, OKAY, IF WE RAISE OUR COMMERCIAL PERMIT FEES TO $100 PER YEAR FOR COMMERCIAL BUSINESSES, WHAT WOULD THAT LOOK LIKE? SO WE HAVE 268 PERMITS FOR COMMERCIALS. THAT'S 9380. IF WE RAISE IT TO $100 PER YEAR, THAT'S $26,800. SO THIS IS A COMPARISON OF THE FALSE ALARM FEES, WHAT WE CHARGE FOR EXCESSIVE FEES. AND YOU CAN SEE ALL THE CITIES ARE RIGHT IN LINE WHEN WE START TO DIFFERENTIATE FROM EACH OTHER, IS THE TOTAL CHARGES AND THE

[03:10:03]

SO I JUST THREW THIS IN HERE. I PULLED THIS OFF THE CRY WOLF SITE TO SHOW FROM THOSE DATES THAT I GAVE YOU EARLIER. AND I REALLY WANT TO CALL SOMEBODY AND MAKE SURE THEY HAD THEM IN THERE. RIGHT. BUT THE FEES CHARGED FOR THOSE DATE RANGES WERE $2,000,327. NET PAYMENTS FOR THE DATE WAS 2,000,138 OUTSTANDING INVOICES, 188,000. SO MY RECOMMENDATION IS WE INCREASE THE COMMERCIAL BUSINESS PERMIT FEES TO $100 PER CALENDAR YEAR. AND FOR FINANCIAL INSTITUTIONS, $200 PER CALENDAR YEAR AND INCLUDE A SENIOR CITIZEN ALARM PERMIT FEE AT $25. SO THAT'LL TAKE THAT FEE DOWN A LITTLE BIT FOR THE SENIOR CITIZENS. WE'RE THE ONLY CITY AROUND HERE THAT DOESN'T HAVE A LOWER PRICE FOR THE SENIOR CITIZENS. SET THE FALSE ALARM FEE FOR ANY ROBBERY ALONE TO $150 PER OCCURRENCE, WITH INCREASING TO $50 FOR EACH ADDITIONAL FALSE ALARM. NOW, I KNOW THAT SEEMS LIKE A LOT, BUT WHAT WE HAVE TO UNDERSTAND IS THAT WHEN WE RESPOND TO THESE FINANCIAL BUSINESSES ARE WE RESPOND TO THESE STORES FOR THESE ROBBERY ALARMS AND STUFF LIKE THAT. WE USE A LOT OF RESOURCES. WE DON'T RESPOND TO THEM IN THE SAME WAY. SO YOU'RE TALKING ABOUT THREE, FOUR OFFICERS THAT WILL RESPOND, YOU KNOW, TO MAKE SURE THE PLACE IS SECURE AND SURROUNDED AND WE CAN DEAL WITH WHATEVER IT IS THAT WE NEED TO DEAL WITH. I ALSO THINK WE SHOULD ADD A OPT OUT CLAUSE IN THE ORDINANCE AND CHARGE A FEE OF $200 FOR EACH RESPONSE TO AN OPT OUT. IF YOU IF YOU HAVE A MONITORED ALARM AND YOU CHOOSE NOT TO GET A PERMIT AND WE COME OUT THERE FOR FALSE ALARMS, YOU SHOULD PAY FOR THAT. UTILIZING OUR RESOURCES. SO I KNOW THIS, THIS WON'T FIX EVERYTHING, BUT THIS WILL HELP A LITTLE BIT. WE NEED TO LOOK AT UPDATING OUR ALARM FEES. ANYBODY HAVE ANY QUESTIONS? GO BACK TO YOUR FIRST SLIDE. YES, SIR. SO. WHICH ONE SHOWED THE. HOW MANY PERMITS WE ACTUALLY HAVE RIGHT NOW. ALARM PERMITS. LET'S SEE. IT SHOWED THE NEW COMMERCIAL LAW PERMITS. THE WHAT WE RECEIVED IN FY 25. THE NEW RESIDENTIAL LAW PERMITS THAT WE RECEIVED IN FY 2025. AND THIS IS WHERE WE ARE AS OF TODAY. REALLY, THESE COULD HAVE BEEN ON TWO DIFFERENT SLIDES. WE GOT ALMOST 14000 HOUSEHOLDS IN DUNCANVILLE, AND THAT'S THAT'S THE TOTAL AMOUNT OF RESIDENTIAL PERMITS. THOSE ARE THE NEW PERMITS FOR FY 25. SO SHE ALSO INCLUDED ON HERE THE PERMITS THAT WERE GETTING READY TO EXPIRE IN THE ACCOUNTS THAT WE WE MAY LOSE. SO THAT'S WHAT'S UP TOP PAGE 72, I THINK IS WHAT HE'S LOOKING FOR. 73. THOSE TWO ARE IN THERE. THAT'S RIGHT. BUT THERE'S A LITTLE. OKAY. SO YES. SO THIS IS THE NUMBER OF PERMITS THAT WE HAVE TOTAL RIGHT NOW. SO 951 RESIDENTIAL. YEAH. SOUNDS GOOD. NEXT. WELL, WE'VE GOT WE GOT A COUPLE MORE SLIDES ON REVENUE RECOMMENDATIONS. AND WITH THAT IT'S KIND OF TO THE END. ALMOST THERE. SO JIM WILL TAKE US TO THE NEXT SLIDE. YEAH. SO GO AHEAD AND GIVE IT TO MR. OH OKAY. DANIEL, I BROUGHT SOME THINGS FOR Y'ALL TO HAVE A LOOK

[03:15:02]

OBVIOUSLY. I THINK WE ALL KNOW THAT LIMITED BUDGET. THAT'S EXACTLY WHAT WE'RE DOING HERE AND WHAT WE'RE DEALING WITH TODAY. AND OF COURSE, YOU KNOW, WITH EVERYTHING WITH THE FIRE DEPARTMENT, WE HAVE A LOT OF INCREASED DEMAND. I'M GOING TO GIVE YOU A STATISTIC RIGHT NOW.

AND WHEN I STARTED ALMOST 22 YEARS AGO NOW, WE WERE RUNNING 2200 CALLS A YEAR IN THE FIRE DEPARTMENT. NOW WE'RE UP OVER 7600 CALLS A YEAR. YEP. SO THE OUR THE USE OF FIRE DEPARTMENT EQUIPMENT, MANPOWER, ALL THOSE THINGS IS REALLY STARTING TO HIT US. AND IT'S TIME TO START MAYBE THINKING ABOUT DOING SOMETHING ABOUT IT. I KIND OF FIGURED THERE'S, YOU KNOW, A COUPLE OPTIONS THAT A LOT OF CITIES DO GO WITH ON THIS. A LOT OF THEM HAVE A, A PUBLIC SAFETY FEE THAT THEY JUST ATTACH MAYBE TO A UTILITY BILL OR SOMETHING LIKE THAT, BUT THAT HITS ALL THE RESIDENTS DIRECTLY IN THEIR POCKET. AND SO THAT'S WHY I DON'T THINK THAT'S A GREAT IDEA HERE. WHAT WE'RE GOING TO SUGGEST IS USING EMERGENT FIRE AND IS A COMPANY THAT IS A DIVISION OF EMERGENT CON, WHO WE USE FOR OUR EMS BILLING. THEY WILL BUILD FOR FIRE RESPONSE AS WELL. SO THE GOOD THINGS ABOUT ABOUT DOING THIS ARE, YOU KNOW, THIS IS GOING TO BE BUDGET NEUTRAL. IT'S GOING TO BE ZERO UPFRONT COST FOR THE CITY OF DUNCANVILLE. OKAY? IT'S GOING TO UTILIZE INSURANCE, THE HOMEOWNERS INSURANCE, AUTO INSURANCE. THE FEE IS ALREADY COLLECTED AS PART OF YOUR POLICIES. OKAY. AND WITH THIS COMPANY, IF IT'S NOT COLLECTED FROM THE INSURANCE COMPANY, THEY'RE NOT GOING TO SEND A BILL TO THE RESIDENTS ASKING FOR THE DIFFERENCE AND ALL THAT MONEY, ALL THAT KIND OF STUFF.

OKAY. THE FEES THAT THEY DO COLLECT ARE A PERCENTAGE OF THEIR COLLECTIONS. OKAY. SO ONCE AGAIN, NO OUT OF POCKET EXPENSES FOR THE RESIDENTS. AND, YOU KNOW, WE, WE ENVISION THAT WE CAN USE THE COST HOPEFULLY FOR A LOT OF STUFF IN THE FIRE DEPARTMENT. BUT I KIND OF KNOW HOW THINGS GO AROUND HERE. WE GOT TO SHARE THE LOVE AROUND HERE. SO AND SINCE WE USE EMERGENT CON FOR BILLING EMERGENT FIRE, AND THE REASON WE'RE SUGGESTING TO USE EMERGENT FIRE IS ACTUALLY BECAUSE THEIR FEE WILL, WILL DECREASE THE PERCENTAGE FEE THAT THEY CHARGE US. IF YOU'RE NOT USING EMERGENT CON FOR YOUR EMS BILLING, THEY CHARGE YOU 18%. BUT SINCE WE DO USE THEM FOR EMS BILLING, ALSO THEY REDUCE THEIR FEE TO 15%. SO THAT'S A NICE LITTLE PERK TO JUST USE THIS COMPANY. AND BASICALLY, YOU KNOW, JUST TO GIVE YOU ALL AN IDEA OF KIND OF WHAT WE'RE DOING ON A YEAR TO YEAR BASIS, THIS IS 2025 AND THESE ARE THE AMOUNT OF RESPONSES WE HAVE TO THESE PARTICULAR TYPES OF INCIDENTS.

OKAY. SO YOU CAN SEE, YOU KNOW, WE'RE PRETTY HEAVY. ONE THING THAT IS ACTUALLY NOT UP THERE, AND IT'S PROBABLY INCLUDED ON HERE AS PART OF THE MOTOR VEHICLE ACCIDENT, WHICH WOULD BE THE FIRST LEVEL THERE. BUT WE GOT 29 VEHICLE FIRES AS WELL. SO OUR SUGGESTION WOULD BE TO, I THINK AT A MINIMUM, WE CAN CHARGE INSURANCE COMPANY FOR A STRUCTURE FIRE RESPONSE, A VEHICLE FIRE RESPONSE, HAZARDOUS MATERIAL RESPONSE. I THINK HITTING CONTRACTORS WHEN THEY HIT A GAS LINE. I'M NOT SAYING YOU GO TO SOMEBODY'S HOUSE AND CHECK THEIR HOUSE FOR GAS, GAS, SMELL LIKE THAT. I'M NOT SUGGESTING THAT WE GO AFTER THE RESIDENTS OR ANYTHING, EVEN AN INSURANCE COMPANY, FOR SOMETHING LIKE THAT. OKAY. BUT I THINK THE CONTRACTORS, THEY GOT INSURANCE, WE CAN HIT THEM FOR THAT FOR SURE. FIRE INVESTIGATIONS. THAT CAN BE A DECENT. WE HAD 12 FIRE INVESTIGATIONS LAST YEAR IN THE CITY OF DUNCANVILLE. SO. AND

[03:20:11]

NOW, THIS IS NOT FIRE BILLING. THIS IS EMS BILLING. WE HAVE BILLED $2.96 MILLION. NOW WE DON'T GET THAT ALL BACK. WE HAVE COLLECTED $941,000 IN THAT TIME. SO RIGHT NOW WE'RE AT ABOUT A THIRD OF WHAT WE BUILD THEM. I DON'T KNOW IF THE FIRE BILLING IS GOING TO BE SIMILAR OR DIFFERENT OR WHAT. AND WHAT I WOULD TELL YOU IS THAT, YOU KNOW, I DON'T SEE THIS SOLVING EVERY ONE OF OUR BUDGET PROBLEMS. BUT IT'S A WAY TO TO NOT GET HIT IN THE POCKETBOOK FOR OUR EXPENSES AT LEAST. AND MAYBE IT CAN BE, YOU KNOW, OVER TIME AND WE'LL SEE HOW THINGS GO. IT MAYBE IT COULD BE MORE SIGNIFICANT THAN, THAN WE'RE HOPING. I JUST WOULD LIKE TO TEMPER EXPECTATIONS AS FAR AS WHAT WE COULD POTENTIALLY RECOVER FROM THIS ON, ON THE EMS IS THAT YOU DON'T BILL THE INSURANCE OR DO YOU ALL THAT'S CORRECT. YOU DO WE BUILD THE INSURANCE. THAT'S CORRECT. YEAH. SAME DEAL, SAME SAME COMPANY, JUST A DIFFERENT DIVISION, THE SAME COMPANY. I TRIED TO GET THEM TO GIVE ME SOME ESTIMATES ON SOME RETURNS FROM FIRE BILLING AND ALL THAT KIND OF STUFF. THEY WERE VERY, VERY HESITANT TO GIVE THOSE. THEY SAID, YOU KNOW, THERE ARE SO MANY FACTORS AS TO, YOU KNOW, WHAT YOU'RE BILLING FOR AND, AND ALL THOSE SORTS OF THINGS, I GUESS. SO LIKE I SAID, I SUGGEST, YOU KNOW, AT A BARE MINIMUM STRUCTURE, FIRE VEHICLE, FIRE, HAZARDOUS MATERIALS, BIG GAS LEAKS, FIRE INVESTIGATIONS.

I THINK THAT'S FIVE REALLY GOOD PLACES TO START. WE CAN EVEN CHARGE FOR MOTOR VEHICLE ACCIDENTS IF WE GO ON THOSE. AND I'M NOT SUGGESTING ON A MINOR WRECK ON THE HIGHWAY WHERE WE TELL THEM, OH, WELL, MAYBE WE'LL DRIVE OFF THE HIGHWAY OR SOMETHING LIKE THAT.

I'M NOT SAYING SOMETHING LIKE THAT, BUT, YOU KNOW, WE WOULD HAVE TO GET ALL THE INSURANCE INFORMATION AND JUST ON THE SIGNIFICANT ONES AND WE COULD SEE HOW IT GOES. I MEAN, THERE'S A LOT OF A LOT OF VEHICLE WRECKS. AND THOSE ARE PEOPLE ROLLING THROUGH TOWN THAT DOESN'T EVEN TOUCH THE THE RESIDENTS. YOU KNOW, THAT WOULD BE PROBABLY SOMEBODY WHO DOESN'T EVEN LIVE HERE OR POTENTIALLY ANYWAYS. SO YOU SEE, YOU SAID EARLIER THAT IT WOULD TAKE AN ORDINANCE CHANGE. HAVE YOU SEEN SOME OF THOSE ORDINANCES THAT THOSE OTHER CITIES THAT YOU LISTED UP THERE? I HAVE NOT THEY DID SEND ME AND I'VE GOT IT IN MY PAPERWORK HERE. A SAMPLE ORDINANCE, AND I DIDN'T PRINT IT OFF FOR EVERYBODY. ANYTHING LIKE THAT.

OH, IN IN YOUR BOOKLETS THERE, YOU KNOW, I DID HAVE THE MITIGATION RATES. SO JUST TO GIVE YOU AN IDEA OF SOME OF THE COST RECOVERY POTENTIAL, EXCUSE ME, BUT THEY DID SEND ME AS PART OF SOME OF THE DOCUMENTATION, JUST A SAMPLE CITY ORDINANCE. THAT, YOU KNOW, AND I THINK WE COULD ACTUALLY USE THAT AS A TEMPLATE, TO BE HONEST WITH YOU. I DON'T KNOW THE INS AND OUTS OF THE CITY STUFF WITHIN THE REINVENT IT. WHAT EXACTLY. AND THERE'D BE OBVIOUSLY THEN YOU'D HAVE TO PUT MANY OF THESE IN, IN OUR FEE SCHEDULE AS WELL. I'M SORRY,

[03:25:07]

AND MANY OF YOU KNOW THAT WE RUN AUTOMATIC AID WITH HILL AND DESOTO AS WELL. CAR FIRE. I CAN SEE US DOING THAT. YOU KNOW, IF WE'RE THE, THE PRIMARY ENTITY ON THAT TO, TO, TO PERFORM THAT SERVICE, RIGHT. SO, YOU KNOW, CAR FIRES IN CEDAR HILL. YEAH. WELL, WE CAUGHT THE CALL AND WE BEAT THEM IN AND BY GOLLY, YOU KNOW, SO WE WOULD COLLECT ALL THE INFORMATION ON ALL THAT KIND OF STUFF. BUT AS FAR AS STRUCTURE FIRE GOES AND ALL THAT KIND OF STUFF, I WOULD SEE THAT JUST PRIMARILY IN, WELL, ONLY TO THE CITY OF DUNCANVILLE. YOU KNOW, I'M NOT GOING TO GO INTO ANOTHER CITY AND HAVE AN AGREEMENT WITH THEM TO GO, HEY, HELP THEM PUT THEIR FIRE OUT, BUT THEN CHARGE THE RESIDENTS FOR MY SERVICES. IT'S, YOU KNOW, I FEEL LIKE, YOU KNOW, THERE CAN BE A SLIPPERY SLOPE THERE BECAUSE THEN THEY CAN COME RIGHT BACK OVER HERE AND DO IT.

WE DON'T KNOW WHO THEY'RE USING. RIGHT. SO MAYBE THEIR, THEIR COMPANY THAT THEY'RE USING, YOU KNOW, WILL COME BACK TO THE RESIDENT FOR THAT FEE. I'M TOLD THAT MERCURY FIRE WILL NOT DO THAT. THE THE CITIZEN WILL NOT SEE A BILL FOR IT. CHIEF LARRY IS DESOTO AND CEDAR HILL PRESENTLY USING LIKE FIRE. IN THIS CASE, DESOTO IS NOT. THEY HAVE BROUGHT IT TO THEIR COUNCIL TWO TIMES, AND THEY ARE CONVINCED THAT THE CITIZEN WILL GET A BILL. THEY DON'T UNDERSTAND WHY. WHY THEY WILL NOT LISTEN TO THEM ON THAT. I GUESS I DON'T KNOW WHY, CHIEF LARRY SAID. THERE'S OTHER CITIES THAT ARE USING IT HERE. METROPLEX. YEAH, THERE'S CITIES THAT ARE USING IT. BUT YEAH, RIGHT NOW DESOTO IS NOT. THANK YOU FOR ANOTHER OUTSIDE OF THE BOX WAY OF HELPING IS THIS IS THIS SOMETHING THE COUNCIL WOULD LIKE US TO PURSUE AND LOOK AT AND MOVE FORWARD WITH COUNCIL? I'M IN FAVOR. I'M IN FAVOR, MR. COATES. HE GAVE A PHYSICAL THUMBS. OKAY. THANK YOU. ALL RIGHT. APPRECIATE Y'ALL. SO IS THAT ALSO A THUMBS UP FOR THE FALSE ALARMS AS WELL? OKAY. ALL RIGHT. THE LAST OPTION HERE TO TALK ABOUT MR. STEVENSON. YOUR TURN ON THE LEASING PARK PROGRAM. A LITTLE BIT OF A REFRESHER COURSE.

REFRESHER COURSE, BECAUSE I, MR. AGEE, DID THIS PRESENTATION FOR YOU A COUPLE OF MEETINGS AGO. BUT JUST AS A REMINDER, WE DID HAVE A GROUP COME TO THE CITY ABOUT THE IDEA OF LEASING SOME PARK LAND FOR SOME SMALL SIDED SOCCER FIELDS, TURFING THEM, PUTTING ALL THE SIGNIFICANT AMOUNT OF INVESTMENT CAPITAL DOLLARS INTO THE PARK FOR THE RIGHT TO BE

[03:30:03]

AND SO BUT BEFORE WE MOVE FORWARD THAT WE WANT TO GET YOUR FEEDBACK ON WHAT YOU HEARD FROM MR. AGEE AND ANY CONCERNS YOU MIGHT HAVE. I CAN ANSWER THOSE QUESTIONS THAT YOU MIGHT HAVE. CITIES AROUND US HAVE DONE THIS. THERE'S QUITE A FEW. AND AGAIN, THIS ISN'T REALLY TOO DISSIMILAR. DUNCAN HAS ALREADY DONE IN THE PAST. WE DID IT WITH THE FIELD HOUSE, THE ORIGINAL DALLAS STARS. THAT WAS A LEASE PURCHASE CAPITAL P3 PROJECT WHERE WE PARTNERED WITH DALLAS STARS. MANSFIELD DID IT WITH A BASEBALL COMPANY CALLED BIG LEAGUE DREAMS. SO THERE'S SEVERAL OUT THERE. AGAIN, IT'S NOT UNIQUE. IT'S A DIFFERENT SCALE, DIFFERENT TYPES OF DIFFERENT TYPE OF FACILITY AS OPPOSED TO BEING A BUILDING. WE'RE LOOKING AT PARK IMPROVEMENTS, SOCCER FIELDS. I WON'T GET TOO FAR INTO THE WEEDS, BUT THEY'D HAVE TO BE FENCED TO KEEP. IT WOULD BE. IT WOULD BE. YES. I THINK THERE'S A PLACE IN DESOTO THAT IT'S UP ON THE NORTH BEFORE YOU GET TO I-20. THERE'S SOME FIELDS OUT THERE THAT WERE PRIVATELY OWNED, AND I THINK THEY WERE DESOTO PARKS BACK IN MY DAY. I DID REMEMBER THERE'S A COMPANY CALLED BIG SKY SPORTS, BLUE SKY BLUE SKY SPORTS END UP PUTTING UP INDOOR SOCCER FACILITY AND THE COLONY ON SOME PARK LAND. SO AGAIN, THIS IS NOT UNIQUE NECESSARILY, BUT IT'S AN OPPORTUNITY FOR US TO, TO FIND WAYS TO PROVIDE ADDITIONAL RECREATIONAL OPPORTUNITIES FOR OUR CITIZENS WITHOUT INCURRING THE, OBVIOUSLY, THE HIGH CAPITAL COST. MR. MR. KUNTZ HEARD SOCCER AND I THINK HE'S GOT TWO HANDS. SO AGAIN, WE'RE JUST LOOKING FOR YOU TO. SORRY.

THANK YOU. MAYOR, JUST A COUPLE OF QUESTIONS. SO WE'RE TALKING ABOUT ISSUING AN RFP. WOULD WE AS A COUNCIL. AND OBVIOUSLY THE PARKS BOARD HAVE AN OPPORTUNITY TO DISCUSS THE POTENTIAL SCOPE OF WHAT WE'D BE ASKING ASKING FOR. FIRST QUESTION ONE. ABSOLUTELY. YES. IT'S GOING TO TAKE A LOT OF WORK ON THE FRONT END AS WELL AS THE BACK END. IF WE WANT TO MOVE FORWARD AND MAKE SURE THE RFP IS RIGHT. AND THEN ULTIMATELY, ONCE WE GET TO THE SITUATION WHERE WE WANT TO MOVE FORWARD WITH ACTUAL CONTRACT, AND THAT WILL BE A LOT OF DUE DILIGENCE ON BEHALF OF THE CITY TO MAKE SURE WE DON'T GET INTO A SITUATION LIKE WE DID WITH THE FIELD HOUSE AND THE STAR CENTER. MR. MAYOR, JUST BRIEFLY, MR. KUNTZ IS STILL ON. OH. I'M SORRY. YES.

THANK YOU MAYOR. AND THEN I KNOW WE MENTIONED THIS LAKESIDE. I BELIEVE WE MENTIONED REDBIRD PARK AT SOME POINT AS WELL. BUT MY SECOND QUESTION WAS, IS THERE ANYTHING THAT ANY PART OF THE PROCESS THAT INVOLVES GOING TO THE PUBLIC, BECAUSE WE'RE TALKING ABOUT TAKING PUBLIC PARK SPACE AND POTENTIALLY IT BEING USED FOR PRIVATE USE? SOUNDS LIKE THOUGH, IS THERE SOMETHING THAT WE HAVE TO DO AS FAR AS THE VOTERS OR ELECTIONS, YOU KNOW, TO ALLOW FOR THAT TO HAPPEN? THANK YOU. I DON'T THINK AN ELECTION IS REQUIRED, BUT HOWEVER, I THINK THAT OBVIOUSLY A DUE DILIGENCE AND HAVING PUBLIC INPUT DURING THE PROCESS WOULD BE PRUDENT. THANK YOU, MR. MAYOR. THANK YOU FOR FOR THE PRESENTATION. ONE OF THE THINGS I WOULD HOPE TO SEE AS WE CONSIDER TO AS WE CONTINUE TO CONSIDER THIS POTENTIAL PROPOSAL, ARE SOME POTENTIAL SITES, BECAUSE I KNOW WE'VE WE'VE KIND OF TALKED BACK AND FORTH BETWEEN EXISTING PARK LAND OR SOME OTHER CITY OWNED SPACE THAT MAY NOT BE CURRENTLY OPERATING IN THAT FASHION BECAUSE THERE'S THERE'S COST, OF COURSE, ASSOCIATED WITH READING THAT AND ANY AND ALL OF THAT AND ALSO PROJECTED REVENUE. I KNOW THAT WE'RE SOMEWHAT RESPONDING TO A POTENTIAL OPPORTUNITY, BUT TO YOUR POINT, TO AVOID, YOU KNOW, SOME OF OUR PAST PERHAPS MISSED OPPORTUNITIES TO ENGAGE IN MORE ROBUST DUE DILIGENCE, I THINK IT'LL BE A GOOD OPPORTUNITY FOR US TO, TO TAKE A LONG, HARD LOOK AT THAT, BUT NOT JUST PROJECTED COST OR REVENUE, BUT ALSO EXPENSES AND ALSO HOW IT WOULD FOLD INTO THE FUNDING STRATEGY OF THE PARKS DEPARTMENT. WE JUST CONSIDERED BOTH SOME GRANTS OR SOME GRANTS FROM EDC. THERE'S SOME OTHER THINGS THAT ARE BEING ASKED AS ONE TIME COSTS, BUT SO IF WE'RE LOOKING TO EARN REVENUE FROM

[03:35:03]

ANYTHING ELSE? COUNCIL? JUST A SIDE NOTE, I MENTIONED TO MR. ABERNATHY, LAKESIDE IS ACTUALLY SITTING IN AN OPPORTUNITY ZONE. WITH AN OPPORTUNITY. ALL RIGHT. THANK YOU. SO JUST KIND OF WRAPPING UP HERE. SO DEFINITELY TAKING ALL THOSE COMMENTS AND BE ABLE TO PROVIDE THAT. SO AGAIN, UNDERSTANDING OUR PRIORITIES. THAT IS THE GOAL, RIGHT. AND UNDERSTANDING SERVICE EXPECTATIONS AND BECOMING SUSTAINABLE. SO THAT RED LINE DOES NOT CONTINUE TO GO DOWN, BUT WE'RE ABLE TO BALANCE, YOU KNOW, LONG TERM. SO AS WE'VE KIND OF OR TALKED ABOUT, SO SOMETHING WE'RE LOOKING AT INTERNALLY, OBVIOUSLY TAKING A HARD LOOK AT OURSELVES, WHAT ARE WE SPENDING ON OUR FUNDS, ON OPERATIONAL EFFICIENCIES? WE'RE REALLY LOOKING AT THAT STAFF AND RESOURCE MANAGEMENT LIKE WE ALREADY POSITIONS THAT ARE VACANT RIGHT NOW, INCLUDING POLICE AND FIRE. WE'VE ALREADY ASSUMING SOME OF THOSE POSITIONS TO BE FROZEN FOR THIS YEAR, FOR NEXT YEAR PERMANENTLY. WHO KNOWS. BUT EVERY POSITION BECOMES VACANT. WE ARE LOOKING AT THAT AND UNDERSTANDING WHAT DO WE NEED THIS POSITION? DO WE NOT? SO WE'RE STARTING THERE, BUT WE HAVE OBVIOUSLY A LONG ROAD TO GO IN TERMS OF JUST REALLY MAKING SURE THAT WE ARE SPENDING OUR MONEY EFFICIENTLY. AND THEY'RE ALSO LOOKING, YOU KNOW, AT OUR ASSETS, REVIEWING ALL THAT WE TALKED ABOUT, YOU KNOW, PERHAPS SOME DIVESTMENTS, FANCY WORD THEY'RE LOOKING AT OR MAYBE SOME OF OUR SPACES OR PARKLANDS, WHO KNOWS THINGS THAT ARE NOT BEING USED. WE REALLY NEED TO HANG ON TO THAT KIND OF THINGS. THAT'S SOMETHING MAYBE WE CAN SELL OFF AND, YOU KNOW, BETTER UTILIZE OUR STAFF RESOURCES TO MAINTAIN SOMETHING ELSE. SO IT'S REALLY TAKING A HARD LOOK AT THAT. YOU HEARD SOME REVENUE OPPORTUNITIES, BUT THERE'S SOME OTHER THINGS WE COULD SERIOUSLY CONSIDER. WE HAVE TO DO THAT ANALYSIS OBVIOUSLY, LIKE PIT, FOR EXAMPLE, THAT MAKES SENSE FOR DOWNTOWN STREET MAINTENANCE FEE. AGAIN, WE HAVE STREET MAINTENANCE. STREET MAINTENANCE NEEDS. AND THAT'S JUST, YOU KNOW, GENERAL FUND DEPENDENT. MAYBE WE EVEN LOOK AT SALES TAX AND POSSIBLY REALLOCATE A PORTION OF SALES TAX TO SOMETHING LIKE STREET MAINTENANCE OR A CRIME DISTRICT OR SOMETHING LIKE THAT. SO THESE ARE JUST ALL THOSE THINGS THAT WE, LIKE I SAID, LOOKING AT IT, WE KNOW WE NEED TO BE ABLE TO PROVIDE YOU HARD NUMBERS SO WE CAN START KIND OF DOING THAT PRIORITY AND RANKING KIND OF THING. SO JUST KIND OF ENDING THE EVENING HERE, NOT NECESSARILY WITH AN EXERCISE, BUT JUST LIKE AN OPEN, OPEN DISCUSSION, REALLY WANT TO, YOU KNOW, UNDERSTAND FROM YOUR PERSPECTIVE AS A TAXPAYER AND ALSO AS A COUNCIL MEMBER, YOU HEAR ALL THE THINGS FROM CITIZENS AS WELL AS WE DO. SO JUST REALLY WANT TO UNDERSTAND, LIKE FROM YOUR PERSPECTIVE, LIKE WHAT IS YOUR NON-NEGOTIABLE THINGS? LIKE, I DON'T CARE WHAT WE HAVE TO DO. WE ARE NOT CUTTING THAT. WHAT IS THAT, YOU KNOW, AND WHAT ARE SOME THINGS YOU THINK, HEY, YOU KNOW, I THINK WE COULD PROBABLY, YOU KNOW, PROBABLY REDUCE THIS.

THIS IS I SEE THIS NOT BEING UTILIZED VERY OFTEN. YOU PROBABLY HAVE SOME OF THOSE IDEAS ALREADY AND YOU'RE KIND OF IN YOUR HEAD. SO I WAS JUST KIND OF OPENING UP, OPENING UP FOR SOME FEEDBACK AND DISCUSSION. DANGEROUS WATERS THAT GO INTO IT. WE GOT STAFF SITTING IN HERE. YES. WELL, LET'S START OUT WITH PARK. WHAT ARE WE GOING TO CUT? SO SEE, THIS IS THE CHALLENGE. BUT YOU KNOW, ONE THING, FOR EXAMPLE, I KNOW WE'VE TALKED ABOUT STREET MAINTENANCE FEES IN THE PAST. WE JUST DID KIND OF A HIGH LEVEL BRIEF. DO YOU ALL BUT IF WE ARE GOING TO GO OUT NEXT YEAR AND DO UPDATES ON RATES FOR STORM WATER, WATER RATES, ETC. YOU COULD ASK THEM TO ALSO DO THAT ANALYSIS ON STREET MAINTENANCE FEE. AT LEAST PRESENT IT TO YOU ALL. DOESN'T MEAN YOU HAVE TO DO IT, BUT YOU CAN AT LEAST SEE WHAT THAT REVENUE LOOK LIKE, WHAT WOULD BE THAT CHARGE? AND THAT WOULD TIE IN WITH THAT WHOLE RATE STUDY. YOU COULD, YOU COULD GET THEM TO PIGGYBACK AND DO WHAT OTHER CITIES HAVE DONE THAT WHEN THEY'VE DONE THEIR STORMWATER, THEY ASKED THEM ALSO, HEY, DO A STREET MAINTENANCE FEE OR ANOTHER FEE DOESN'T MEAN YOU HAVE TO DO IT. BUT BUT IS THERE SOME COST SAVINGS IN DOING THEM TOGETHER? YES THERE IS. YOU KNOW, IT'S KIND OF LIKE IF YOU HAVE A HONDA, IF YOU IF YOU REPLACE THE TIMING BELT, YOU MIGHT AS WELL DO THE WATER PUMP AT THE SAME TIME. SO EXACTLY THE SAME THING. WE CAN TAKE ADVANTAGE OF THOSE SAVINGS. AND AGAIN, DOESN'T DOESN'T NECESSARILY MEAN YOU GOT TO DO IT RIGHT. BUT AT LEAST YOU CAN SEE WHAT THAT RATE WOULD BE TO THE CITIZENS. AND WHAT KIND OF REVENUE COULD IT BRING IN TO HELP OFFSET SOME OF OUR GENERAL FUND EXPENDITURES? SO JUST JUST A FOOD FOR THOUGHT. SO THAT'S GOOD. THAT'S GOOD. I THINK THIS IS WHAT THE SECOND YEAR THAT WE'VE DISCUSSED DOING THE HISTORY ASSESSMENT. REMEMBER LAST YEAR WAS MY FIRST MONTH ON THE JOB. I DID YOUR BRIEFING ON

[03:40:04]

WE DIDN'T HAVE A LOT OF SPECIFICS. IT WAS VERY HIGH LEVEL. THIS WAS OUR LEVEL. OH YEAH. AS FAR AS. COUNCIL, MR. THANK YOU, MAYOR, AS WE'RE IT SOUNDS LIKE WE'RE WRAPPING THINGS UP AND WE'RE JUST JUST KIND OF GOING BACK AND DISCUSSING PRIORITY AREAS. AND I, I WANT TO CIRCLE BACK TO ECONOMIC DEVELOPMENT BECAUSE I KNOW I'VE SAID IN PAST DISCUSSIONS LIKE THESE THAT, YOU KNOW, THAT THAT SHOULD BE, YOU KNOW, HIGHLY, HIGHLY PRIORITIZED AREA AS WE TALK ABOUT, YOU KNOW, HOW, HOW DO WE BRING IN NEW REVENUE CAPITAL TO THE CITY AND, AND NOT HAVE TO HAVE THESE DIFFICULT CONVERSATIONS ABOUT WHAT TO CUT? BECAUSE WHEN WE TALK ABOUT ECONOMIC DEVELOPMENT, I KNOW WE'RE ALWAYS TALKING ABOUT HOW LITTLE LAND WE HAVE TO DEVELOP. BUT, YOU KNOW, THE NEW CONVERSATION IS REDEVELOPMENT.

AND MAYOR, YOU'VE TALKED ABOUT, YOU KNOW, THE HIGHWAY 67 CORRIDOR THAT THAT WHOLE AREA, THE CAMP WISDOM CORRIDOR, WHICH IS BASICALLY DEAD. I MEAN, YOU KNOW, IT'S DYING ON THE VINE AT THIS POINT. DANIEL DALE AND MAIN STREET, OF COURSE, DOWN IN THE DOWNTOWN DISTRICT. SO ALL OF THESE AREAS THAT WE HAVE OPPORTUNITIES TO, TO BRING IN ADDITIONAL REVENUE THAT THAT THAT SHOULD BE A PRIORITY AREA AS WELL. SO I'M ALWAYS EXCITED WHEN WE HAVE OPPORTUNITIES TO HAVE DISCUSSIONS ABOUT NOT JUST PUBLIC LANDS, BUT ALSO PRIVATE PROPERTIES OR PRIVATE LANDS THAT, YOU KNOW, COULD BE DEVELOPMENT AND PARTNERSHIP OPPORTUNITIES FOR THE CITY. SO I WANTED TO MAKE SURE WE KEEP ECONOMIC DEVELOPMENT AS A HIGH PRIORITY. THANK YOU. YEAH, AND I AGREE, AND I THINK WE'VE ALL SEEN RECENTLY IN THE ENERGY ON THAT END ECONOMIC DEVELOPMENT THAT REALLY IS PROMISING FOR A FUTURE, NOT NOT BELIEVING FOR A MINUTE THAT THAT'S GOING TO SOLVE OUR IMMEDIATE PROBLEM. BUT IT'S I THINK WE'RE WE'RE MOVING IN THE ECONOMIC DEVELOPMENT DIRECTION IN A WAY WE HAVEN'T SEEN IN QUITE A WHILE. SO I'M REAL EXCITED ABOUT THAT. THE. THE GRAPH THAT WE SAW AT THE PRESENTATION THAT I MAY HAVE BEEN SIMILAR TO YOU SHOWED WE SAW IT AT A PRESENTATION AT THE SENIOR CENTER. IT WAS A CONSULTANT THAT WAS WORKING WITH MONTE ANDERSON, AND HE SHOWED THAT GRAPH THAT SHOWED SOMETHING THAT WAS TYPICAL OF TOWNS OUR SIZE ALL ACROSS THE COUNTRY, AND IT WAS THE COST OF AGED INFRASTRUCTURE GOING UP SIDEWALKS, SEWERS, WATER LINES, YOU NAME IT, STREETS. IT SHOWED IT GOING UP. AND THAT SHOULD ALWAYS BELOW BE BELOW YOUR YOUR INCOMING REVENUE STREAM AND OURS. IT CROSSED. AND THAT WASN'T A GOOD FEELING WHEN I SAW THAT, BECAUSE THAT REALLY TOLD A STORY WITHOUT WORDS. ANYBODY COULD LOOK AT THAT AND SAY, THAT'S NOT GOOD. BUT HE DID REMIND US THAT IT'S HAPPENING TO CITIES OUR SIZE AND OUR AGE ALL OVER THE COUNTRY, THAT THAT'S HAPPENING. THOSE COSTS FOR MAINTENANCE OF OUR STREETS, SIDEWALKS, AND EVERYTHING ELSE IN THAT AREA, WATER LINES, SEWER LINES THAT'S RISING AS FAST AS OUR BUILDING COSTS THAT WE'VE BEEN REMINDED OF SO OFTEN. TALKING ABOUT THE NEW POLICE STATION, 6% A YEAR GOING UP. AND I'LL BET YOU IN SOME OF THOSE AREAS, IT'S GOING UP HIGHER THAN THAT. OR STREETS.

I KNOW CONCRETE'S HIGH RIGHT NOW, SO, YOU KNOW, I CAN'T WAIT TILL WE SEE THAT LINE CROSSED BACK WHERE IT SHOULD BE. BUT I'M NOT FOOLISH ENOUGH TO THINK THAT'S GOING TO HAPPEN SOON.

BUT I AM EXCITED. AND TO JEREMY'S POINT, WE CAN'T LOSE OUR FOCUS ON AS A COUNCIL ON SUPPORTING THE ECONOMIC DEVELOPMENT DIRECTION THAT THEY'RE GOING IN RIGHT NOW AND KEEPING OUR HOPES UP, BECAUSE I THINK WE I THINK WE FIND OUR WAY BACK ON A MORE POSITIVE LEVEL OF OUR FINANCES TO THE EXTENT THAT WE DON'T HAVE TO BE TALKING ABOUT THESE HAVING THESE HARD DISCUSSIONS. BUT BUT RIGHT NOW WE HAVE TO HAVE THE HARD DISCUSSIONS. THANK YOU.

ANYTHING ELSE FROM ANYBODY? STAFF. GOOD JOB. APPRECIATE IT ALL. REALLY DO. THANK YOU MAYOR AND COUNCIL. WE'LL WE'LL MOVE FORWARD WITH THE BUDGET, BUT WE'LL GET THAT PRIORITY LIST OUT TO YOU AND THEN HAVE THAT DISCUSSION WITH THAT WORKSHOP AND NO FURTHER COMMENTS OR BUSINESS. WE WILL STAND ADJOURNED AT

* This transcript was compiled from uncorrected Closed Captioning.