[A. CALL TO ORDER ] [00:00:14] >> EVENING. THANK YOU. MY MICROPHONES JUST DECIDED TO WORK. WE ARE GOING TO START THIS EVENING WITH PUBLIC COMMENT. [B. PUBLIC COMMENT] WE HAVE A COUPLE PEOPLE WHO FILLED OUT COMMENT CARDS, AND WE'LL JUST GET STRAIGHT INTO THAT. YOU HAVE 3 MINUTES TO SPEAK AS USUAL, AND THE ALARM, OR THE BEEPER, WILL SOUND WHEN YOU HAVE 30 SECONDS LEFT. GENIE FARRIER, IF YOU'D LIKE TO COME FIRST? >> GENIE FARRIER, 6604 SUNSET TRAIL, FLOWER MOUND. I LOVE THE ZOOM, THAT'S SO AWESOME AND CONVENIENT TO HAVE. I'M HERE TO ASK THAT WHEN IT COMES TIME TO VOTE ON DECISION PACKAGES, THAT YOU VOTE, 'YES', FOR THE CROSS TIMBERS DRAINAGE ITEMS. MULTIPLE RESIDENTS HAVE SHOWN OVERWHELMING EVIDENCE TO THE DEVASTATION AND DAMAGES OF HOMES FLOODING, LAND BEING WASHED AWAY, CHILDREN NOT ALLOWED TO PLAY OUTSIDE, AND VEHICLES NOT EVEN ABLE TO LEAVE THEIR DRIVEWAYS. YOU'VE HEARD FROM DOCTOR ANDERSON ON RIDGECREST, WHO FIRST CAME TO COUNCIL IN 2004. I GOT SOME WORK ORDERS FROM THE TOWN AND MR. INNES, WHO'S ON RAINTREE. IN 2010, HE EVEN GOT BOBBY MITCHELL INVOLVED AND HER EMAIL TO THE TOWN MANAGER SAYS THAT HE'S LIVED IN FLOWER MOUND SINCE 1978, STANDING WATER IN HIS YARD. PROBLEM HAS BEEN GOING ON FOR YEARS AND HE CAN'T GET ANYONE IN THE TOWN TO HELP HIM FIX IT. THAT'S 15 YEARS AGO. THIS PROBLEM HAS BEEN GOING ON FOR A VERY LONG TIME. YOU'VE SEEN LOTS OF EVIDENCE JUST THIS YEAR. BUT FLOWER MOUND ACTUALLY SAID IT BEST AS TO WHY THESE ARE NEEDED NOW AND NOT IN FUTURE YEARS WHEN FUNDS ARE AVAILABLE. I'M DEFINITELY NOT A NUMBERS PERSON. THE BUDGET WAS VERY COMPLICATED. I'M SURE THERE'S THINGS THAT I DON'T UNDERSTAND, BUT I ALSO HAVE TO BELIEVE THAT THE MONEY IS THERE SOMEWHERE FOR THIS STUDY. I'M GOING TO READ THIS STRAIGHT FROM FLOWER MOUND. THE PROPOSED DRAINAGE STUDY DIRECTLY SUPPORTS THE TOWN'S STRATEGIC PLAN BY ENHANCING PUBLIC SAFETY, PRESERVING INFRASTRUCTURE, PROMOTING RESPONSIBLE DEVELOPMENT, AND PROTECTING NATURAL RESOURCES, ENSURING LONG-TERM RESILIENCE AND A HIGH QUALITY OF LIFE FOR ITS RESIDENTS, AND THAT'S WHAT WE'VE BEEN ASKING FOR. IT SAYS CONDUCTING THIS DRAINAGE STUDY AS THE PILOT PROJECT IN FLOWER MOUND ALIGNS WITH THE TOWN'S STRATEGIC PLAN BY ADDRESSING SEVERAL CORE GOALS. IT SUPPORTS PUBLIC SAFETY BY IDENTIFYING AND MITIGATING FLOOD RISK, ENSURING THE PROTECTION OF OUR HOMES, ROADWAYS, AND PUBLIC INFRASTRUCTURE. THE STUDY CONTRIBUTES TO SUSTAINABLE INFRASTRUCTURE BY GUIDING PROACTIVE MAINTENANCE AND UPGRADES TO STORMWATER SYSTEMS. IT ALSO ALIGNS WITH THE GOAL OF ENVIRONMENTAL STEWARDSHIP, AS IT HELPS SAFEGUARD NATURAL WATERWAYS AND PROMOTE RESPONSIBLE LAND USE. ADDITIONALLY, THE STUDY ENABLES SMART GROWTH AND DEVELOPMENT BY PROVIDING ESSENTIAL DATA FOR INFORMED PLANNING, ZONING, AND PERMITTING DECISIONS. TOGETHER, THESE EFFORTS HELP MAINTAIN FLOWER MOUND'S HIGH QUALITY OF LIFE AND REINFORCE THE TOWN'S COMMITMENT TO LONG-TERM RESILIENCE AND WELL-MANAGED GROWTH. I KNOW THERE'S BEEN TALK ABOUT INCREASING SOME RATES AND GETTING THE FUNDS THAT WAY IN ORDER TO DO THIS. THE CONCERN IS HOW LONG DOES THAT TAKE? I'M JUST REQUESTING THAT YOU VOTE ON THIS STUDY. IT IS SO OVERWHELMINGLY IMPORTANT. LIKE I SAID, FLOWER MOUND'S OWN WORDS ADDRESS AT BEST IN SOMETHING THAT I PULLED STRAIGHT FROM THE BUDGET. I COULDN'T HAVE SAID IT ANY BETTER MYSELF. IT COVERS THE PUBLIC SAFETY, ALL OF THAT. I ALSO LIKE HOW IT SAYS PROACTIVE, BECAUSE ANOTHER FORM IN THE DOCUMENT TALKED ABOUT HOW EVERYTHING WITH THIS WAS REACTIVE INSTEAD OF PROACTIVE. THANK YOU VERY MUCH FOR YOUR TIME. >> THANK YOU, GENIE. WE HAVE CODY SMITH. DON'T FORGET TO STATE YOUR NAME AND ADDRESS. >> HELLO. MY NAME IS CODY SMITH. I AM FROM 1904 COLLEGE PARKWAY. TODAY, I AM HERE TO TALK ABOUT THE LACK OF SIDEWALKS IN FLOWER MOUND FOR SKATEBOARDERS LIKE ME AND HOW THAT CAN BE DANGEROUS. I'M GOING TO BE READING OFF MY PAPER. I WISH TO THANK YOU FOR ALLOWING ME TO SPEAK TONIGHT, AND I'M HERE TO ADDRESS A SERIOUS SAFETY CONCERN IN OUR TOWN. THE LACK OF SIDEWALKS IN CERTAIN AREAS OF FLOWER MOUND IS PARTICULARLY DANGEROUS FOR SKATEBOARDERS WHO ARE FORCED TO USE THE ROADS, ALONGSIDE CARS. [00:05:02] SPECIFICALLY, IN THE TOWN OF FLOWER MOUND AREA, THERE ARE NO SIDEWALKS ON LONG PRAIRIE OR JUSTIN ROAD. THIS MEANS THAT SKATEBOARDERS, INCLUDING MANY YOUNG PEOPLE, HAVE NO SAFE PLACE TO RIDE. THEY ARE FORCED TO RIDE IN THE STREET, OFTEN CLOSE TO SPEEDING TRAFFIC. THIS SITUATION CREATES SEVERAL DANGERS. FIRST, SKATEBOARDERS ARE AT RISK OF BEING HIT BY CARS. DRIVERS MAY NOT SEE THEM, ESPECIALLY AT DUSK OR DAWN. SECOND, EVEN IF THEY AREN'T HIT, DRIVERS WILL USUALLY SWERVE TO AVOID SKATEBOARDERS IN THE ROAD, WHICH CAN CAUSE ACCIDENTS. THIRD, THE LACK OF SIDEWALKS DISCOURAGES PEOPLE FROM WALKING OR SKATEBOARDING FOR EXERCISE AND RECREATION, WHICH IS IMPORTANT FOR A HEALTHY COMMUNITY. I BELIEVE THAT BUILDING SIDEWALKS IN THESE AREAS WOULD SIGNIFICANTLY IMPROVE SAFETY FOR EVERYONE. I UNDERSTAND THAT THIS WOULD REQUIRE PLANNING AND FUNDING, BUT I DO BELIEVE IT IS A WORTHWHILE INVESTMENT IN WELLBEING FOR OUR RESIDENTS. THEREFORE, I REQUEST THAT THE TOWN COUNCIL CONSIDER THE FOLLOWING. CONDUCT A STUDY TO IDENTIFY AREAS OF FLOWER MOUND THAT ARE IN MOST NEED OF SIDEWALKS. PRIORITIZE THE CONSTRUCTION OF SIDEWALKS IN AREAS WHERE SKATEBOARDERS AND PEDESTRIANS ARE AT GREATEST RISKS. ALLOCATE FUNDING IN THE TOWN BUDGET FOR SIDEWALK CONSTRUCTION AND MAINTENANCE. I AM CONFIDENT THAT BY WORKING TOGETHER, WE CAN MAKE FLOWER MOUND A SAFER PLACE FOR EVERYONE. I AM HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE. I AM WILLING TO HELP IN ANY WAY THAT I CAN FIND SOLUTIONS TO THIS PROBLEM. THANK YOU FOR YOUR TIME. >> THANK YOU SO MUCH. DO WE HAVE ANY MORE PUBLIC COMMENT CARDS? DOES ANYONE IN THE BIG CROWD WISH TO SPEAK THIS EVENING? WE WILL CLOSE PUBLIC COMMENT. THIS WORK SESSION TONIGHT JUST SIMPLY ALLOWS COUNCIL TO [C. WORK SESSION ITEM] REVIEW THE BUDGET AND DIRECT STAFF ON ANY CHANGES OR MODIFICATIONS TO THE PROPOSED BUDGET THAT STAFF HAS PUT TOGETHER TONIGHT AND TO ADDRESS ANY DECISION PACKAGES THAT ARE IMPORTANT TO THE RESIDENT NEEDS. THE BUDGET WILL HAVE A FOCUS ON OUR STRATEGIC PLAN, INCLUDING A SUPERIOR QUALITY OF LIFE, ENHANCING PUBLIC SAFETY, IMPROVING OUR INFRASTRUCTURE, AND OF COURSE, MAINTAINING OUR FINANCIAL STABILITY AND OPERATIONAL SOUNDNESS. WE DO HAVE SOME CHALLENGES THAT HAVE COME UP. MAYOR PRO TEM, DEPUTY MAYOR PRO TEM, AND MYSELF ARE GOING DOWN TO AUSTIN WITH SOME STAFF TOMORROW TO DEAL WITH SOME OF THE BILLS THAT ARE GOING TO AFFECT US. IT'S GOING TO AFFECT OUR FUTURE BUDGET. WE HAVE SOME STATE BILLS AND A HOUSE BILL THAT WE'RE ADDRESSING. I KNOW, JAMES, YOU'RE GOING TO SPEAK A LITTLE BIT MORE ABOUT THIS, BUT WE HAVE SENATE BILL 10, WHICH COULD IMPOSE A 2.5% REVENUE CAP, AND THIS WILL GREATLY AFFECT OUR FUNDING FOR PUBLIC SAFETY. WE HAVE WHAT'S CALLED HB73, AND THIS WILL LIMIT THE ANNUAL MUNICIPAL SPENDING, AND IT REQUIRES A VOTER APPROVAL FOR ANY INCREASES. THERE'S GOING TO BE JUST STRICTER SPENDING CAPS FOR US IF THESE BILLS GO THROUGH. IT'S VERY IMPORTANT THAT WE'RE INVOLVED, THAT WE GO TO LEGISLATURE, THAT WE FIGHT SOME OF THE THINGS THAT ARE CREATING ROADBLOCKS FOR US LOCALLY. JAMES, I'M GOING TO LET YOU TAKE IT OVER, AND THEN WE'LL GET STARTED WITH OUR STAFF PRESENTING FOR OUR WORK SESSION TONIGHT. THANK YOU, MAYOR, I APPRECIATE IT. GOOD EVENING TO YOU AND THE COUNCIL, THOSE REMOTE MEMBERS OF THE PUBLIC THAT ARE HERE. THIS WORK SESSION, YOU CAN MAKE ARGUABLY THE MOST IMPORTANT MEETING THAT WE HAVE IN THE COURSE OF A GIVEN YEAR. WHAT WE'RE GOING TO WALK YOU THROUGH IS OUR FISCAL YEAR 26 ANNUAL BUDGET. THE PROPOSED BUDGET IS MY BUDGET AS THE TOWN MANAGER THAT I PUT TOGETHER, TRYING TO BE RESPONSIVE TO THE PRIORITIES THAT YOU PROVIDED TO ME. WHAT WE THINK IS IMPORTANT BASED UPON CONSULTATION WITH OUR DIRECTORS. THE PROCESS ONCE AFTER TONIGHT IS THAT YOU MAKE IT YOUR BUDGET, AND THAT'S ULTIMATELY WHAT'S ADOPTED, AND IT BECOMES ALL OF OUR BUDGETS INCLUDING OURS, AND THAT'S WHAT WE GO AND EXECUTE. THE ANNUAL BUDGET IS A FINANCIAL DOCUMENT, IT HAS DOLLAR SIGNS AND EVERYTHING ELSE IN IT, BUT IT'S A POLICY DOCUMENT. IT'S WHERE WE PUT INTO ACTION THE PRIORITIES THAT ARE SET FORTH IN OUR STRATEGIC PLAN AND WHAT WE'RE TRYING TO ACCOMPLISH AS A COMMUNITY. THIS IS MY FOURTH BUDGET THAT I'VE WORKED ON AS TOWN MANAGER HERE IN FLOWER MOUND AND THIS BUDGET HAS DISTINCTIONS ON TWO DIFFERENT POLES. [00:10:02] ONE, THIS IS THE MOST DIFFICULT BUDGET THAT I'VE HAD TO PUT TOGETHER, BUT IT'S ALSO THE EASIEST BUDGET THAT I'VE PUT TOGETHER AND I'LL EXPLAIN THAT SHORTLY. WHAT'S MADE THIS BUDGET DIFFICULT IS THAT IN WORKING TO PROVIDE A BALANCED BUDGET TO MEET ALL THE PARTIES THAT WE'VE HAD, WE'RE DOING IT IN THE BACKDROP OF WHAT IS A DISTINCT REVENUE PROBLEM. WHAT I MEAN BY THAT IS THAT MUNICIPALITIES ARE STRUGGLING WITH REVENUE RIGHT NOW BECAUSE OUR PROPERTY TAX BASE ARE FALLING. FOR THE TOWN OF FLOWER MOUND, OUR SALES TAX REVENUE IS FLAT. IT'S NOT NECESSARILY FALLING, BUT IT'S FLAT. WHEN JOHN GETS UP AND PROVIDES HIS PRESENTATION, HE'LL GET A LITTLE BIT MORE INTO THE WHY AND HOW WE'RE IN THIS REVENUE SITUATION. BUT WITH THAT BEING SAID, IT'S NOT TO SAY THAT WE'RE NOT TAKING A LOOK AT OUR EXPENDITURES OR NOT OPPORTUNITIES TO GET MORE EFFICIENT, BUT AT ITS CORE, WE'RE DEALING WITH A REVENUE PROBLEM. BECAUSE OF THAT, IT'S CREATED A VERY CHALLENGING BUDGET PROCESS IN THE SENSE THAT IN ORDER TO ACCOMPLISH WHAT WE SET FORTH TO ACCOMPLISH, THE LEEWAY THAT I HAD AND THE FLEXIBILITY I HAD TO ACCOMPLISH THOSE THINGS SHRUNK AND SHRUNK BY THE DAY AND BY THE WEEK. IT WASN'T UNTIL WE GOT A TRUE SENSE OF THE IMPACT ASSOCIATED WITH WHAT OUR TAX BASE WAS DOING. WE DIDN'T GET THAT UNTIL THE END OF JULY. WE WERE WORKING UP TO THE LAST MINUTE TRYING TO FIGURE OUT WHAT OUR NUMBER WAS, AND WE WORKED VERY HARD IN A PROCESS TO BRIDGE THAT GAP IN ORDER TO ACHIEVE A BALANCED BUDGET. PRINCIPALLY, AS WE SAW THE BACKDROP ON WHERE THIS THING WAS GOING, THERE WAS TWO PRINCIPAL OBJECTIVES THAT I WANTED TO ACHIEVE WITH THIS BUDGET. THE FIRST OF WHICH IS TO MAINTAIN OUR CURRENT SERVICE LEVELS. FOR THE UNINITIATED, AND THOSE ARE RELATIVELY NEW TO OUR BUDGET, I WOULD INVITE YOU TO TAKE A LOOK AT WHAT WE CALL NON-DISCRETIONARY PACKAGES. WHAT THOSE REPRESENT IS A WAY FOR YOU TO SEE PARTS OF OUR FUNCTION IN OUR BUDGET THAT HAVE INCREASED, BUT WE HAVE TO FUND THEM IN ORDER TO MAINTAIN OUR SERVICE LEVELS. THIS IS WHERE WE CAPTURE INFLATIONARY FACTORS AND OTHER THINGS THAT DRIVE UP. THINK ABOUT COMMODITIES, THINGS THAT WE NEED. SOFTWARE PRICES HAVE GONE UP, THINGS OF THAT NATURE, FUEL; IT'S A GOOD EXAMPLE OF THOSE. WE HAD $4.4 MILLION OF NON-DISCRETIONARY INCREASES. AS WE'RE TRYING TO PUT THIS BUDGET TOGETHER, WE HAVE TO COME UP WITH $4.4 MILLION IN ORDER TO MAINTAIN OUR CURRENT SERVICE LEVEL. THAT'S ONE THING, AND I'M PROUD TO SAY WE WERE ABLE TO BRIDGE THAT GAP AND MAKE THAT HAPPEN. THE OTHER IMPORTANT THING THAT WE HAD TO ACCOMPLISH WITH THIS BUDGET WAS THAT WE NEEDED TO FUND THE MARKETS AND MERITS FOR OUR EMPLOYEES. PEOPLE, I DON'T THINK GRASP THE INTENSITY OF PEOPLE IN WHAT WE DO. WE'RE A SERVICE ORGANIZATION. WE DON'T MAKE WAGES, WE DON'T PUT THINGS ON STORES. PEOPLE ARE OUR PRODUCT. TO GIVE YOU A SENSE IN OUR GENERAL FUND, 75% OF OUR BUDGET GOES TO SALARIES. POLICE OFFICERS, FIREFIGHTERS, LIBRARY WORKERS, EVERYTHING ACROSS THE SPECTRUM AND OUR GENERAL FUND IN PARTICULAR ARE PEOPLE-INTENSIVE. I'M APPRECIATIVE TO THE COUNCIL AT THIS TIME, MANY YOU WERE ON THAT COUNCIL. WE DID A CLASS IN COMP STUDY A FEW YEARS BACK, AND THAT WENT A LONG WAY TO HELPING US WITH ATTRITION AND STAYING COMPETITIVE IN THIS MARKETPLACE. BECAUSE WHEN WE LOSE PEOPLE, GUESS WHAT HAPPENS, OUR SERVICE LEVELS DROP. WITH THAT, WE WERE ABLE TO FUND THOSE MARKETS AND MERITS, AND THOSE ARE CRITICALLY IMPORTANT TO MAINTAINING OUR SERVICE LEVEL. OUTSIDE OF THOSE TWO THINGS, I LITERALLY HAD NO OTHER LEVERS TO PULL, AND WE GOT VERY DANGEROUSLY CLOSE, IN THIS BUDGET, TO CUTTING SERVICE LEVELS, BUT WE WERE ABLE TO CLOSE THE GAP THIS YEAR ON THAT. THAT'S THE DIFFICULT PART OF IT. THE EASY PART OF IT IS, EXCUSE MY BAD GRAMMAR, WE AIN'T GOT NO MONEY. YOU DON'T HAVE SPECIAL ON THE GENERAL FUND SIDE. WE DON'T HAVE A LOT OF DISCRETIONARY FUNDS WITHIN OUR BUDGET. TO GIVE YOU A SENSE IN THIS ENTIRE OPERATING BUDGET, THERE'S ONLY $900,000 DECISION PACKAGES. FOR THOSE THAT ARE UNINITIATED, DECISION PACKAGES REPRESENT SERVICE LEVEL INCREASES OR NEW PROGRAMS, NEW PERSONNEL, THINGS OF THAT NATURE. THAT'S ACROSS ALL OUR FUNDS. BUT WHAT I WANT TO POINT TO SPECIFICALLY IS IF YOU LOOK AT OUR GENERAL FUND, THERE WAS ONLY $12,800 WORTH OF INCREASES IN OUR GENERAL FUND. THAT'S ALMOST $100 MILLION GENERAL FUND. I THINK THAT PAINTS THE PICTURE OF HOW TIGHT THIS BUDGET WAS. IN ALL THOSE FUNDS IN THAT $900,000, ONLY ONE POSITION WAS ADDED TO THIS BUDGET AND THAT WAS IN OUR UTILITY FUND FOR SOMEBODY TO WORK WITH OUR ASSET MANAGEMENT. I THINK IT'S IMPORTANT THAT PEOPLE TAKE A LOOK AT THE UNFUNDED PROJECTS, AND IN THAT LIST, THERE'S A HOST OF THINGS. MISS FARRIER REFERENCED A COUPLE OF THINGS IN OUR STORMWATER FUND. BUT LOOK AT WHAT WE HAVE IN POLICE, LOOK WHAT WE HAVE IN FIRE. IF YOU LOOK AT ACROSS ALL OF OUR FUNDS, OVER SEVEN MILLION DOLLARS WORTH OF DECISION PACKAGES ARE UNFUNDED IN THIS BUDGET. WHAT I WANT TO STRESS IS THAT THESE AREN'T WISHLIST ITEMS. IT'D BE AWESOME IF WE HAVE THESE. THESE REPRESENT THINGS THAT WE'RE EVENTUALLY GOING TO HAVE TO FIND A WAY TO FUND. [00:15:02] I SHARE THAT WITH FOLKS TO LET YOU KNOW IS AS WE MOVE FORWARD, WE'RE GOING TO HAVE TO FIND A WAY TO FUND THESE. THESE ARE CRITICAL PEOPLE, PERSONNEL THAT WE'RE GOING TO NEED, THINGS OF THAT NATURE. >> THERE WAS A LOT LEFT ON THE CUTTING ROOM FORM FOR THIS BUDGET. BUT AGAIN, IT PAINTS THE PICTURE OF HOW CHALLENGING THIS BUDGET PROCESS WAS. WITH THAT BEING SAID, I WANT TO ACKNOWLEDGE THE WORK OF THE STAFF, JOHN, OUR CFO, AND MEG OUR BUDGET DIRECTOR. THEY WORKED VERY HARD TO STEER US. YOU DON'T KNOW HOW MANY TIMES THIS MAN WALKED INTO MY OFFICE AND SHUT THE DOOR AND I KNEW I WAS GOING TO GET GOOD NEWS, BUT WE HAD TO FIGURE OUT A WAY TO GET THROUGH IT AND HE'S DONE A GOOD JOB OF LEADING US DO THAT. ADDITIONALLY, I WANT TO THANK OUR FINANCIAL SERVICES TEAM, STRATEGIC SERVICES, WE INTEGRAL PART OF GETTING THROUGH THIS BUDGET PROCESS. I ALSO WANT TO THANK OUR DIRECTORS. THEY WORKED VERY HARD. EVEN AT THE BEGINNING, WE HAD NO CLUE HOW BAD THAT THIS WAS GOING TO END UP GETTING. AT THE VERY BEGINNING, WHEN WE STARTED OFF IN MARCH WITH THE BUDGET KICKOFF, ONE OF THE THINGS I SHARED WITH THE STAFF IS, THIS IS GOING TO BE A LEAN BUDGET YEAR. SHARPEN YOUR PENCILS, GET OUT THE FLUFF. LET'S MAKE SURE THAT WE'RE FOCUSED AND THEY DID THAT. AGAIN, THAT HELPED US BE ABLE TO NAVIGATE THIS BUDGET AND GET WHERE WE NEED TO BE. I WANT TO THANK YOU AS A COUNSEL. YOU'VE BEEN ENGAGED. WE'VE HAD CONVERSATIONS IN THE SPRING ABOUT PRIORITIES AND SOME THINGS ON THE HORIZON. JUST APPRECIATE YOUR FEEDBACK AND WHAT YOU PROVIDED US TONIGHT TO GET THROUGH THIS. BEFORE I TURN IT OVER TO JOHN, I WANT TO TALK A LITTLE BIT ABOUT THE FUTURE BECAUSE I THINK IT'S AWFULLY IMPORTANT. LOOKING FORWARD TO THE FISCAL YEAR 27 NEXT YEAR'S BUDGET. THE REALITY OF THE SITUATION, AND I'M GOING TO START GETTING AND I'M GOING TO START THROWING SENATE BILLS AT YOU. I'M GOING TO REFERENCE SOME OF THE THINGS THAT THE MAYOR REFERENCED IN REGARDS TO THE LEGISLATION, BUT IT'S CRITICALLY IMPORTANT THAT OUR PUBLIC UNDERSTANDS THIS. THAT THIS BUDGET IS MORE THAN LIKELY GOING TO BE THE LAST BUDGET THAT THE TOWN IS GOING TO BE ABLE TO MAINTAIN WITHOUT HAVING GO TO THE VOTERS FOR WHAT'S CALLED A VOTER APPROVAL TAX RATE OR A VADER ELECTION. IN 2019, OUR LEGISLATURE CREATED A 3.5% REVENUE CAPS ON MUNICIPALITIES AND IN THE SIX YEARS SINCE THAT'S GONE INTO PLACE, WHAT CITIES AND MUNICIPALITIES AND TOWNS LIKE FLOWER MOUND HAVE DONE IS WE'VE TIGHTENED OUR BELTS. WE'VE GOTTEN MORE EFFICIENT, AND WE FIGURED OUT HOW TO STRETCH WITHOUT HAVING TO GO TO OUR VOTERS. BUT IT DOESN'T TAKE A FINANCE GENIUS TO UNDERSTAND WHEN YOUR REVENUES ARE GOING DOWN AND YOUR EXPENDITURES ARE GOING UP, YOU'RE GOING TO HIT A POINT WHERE YOU'RE GOING TO HAVE TO MAKE CRITICAL SERVICE LEVEL DECISIONS. THE REALITY SITUATION AS THE MAYOR REFERENCES, IS THAT TOMORROW MORNING, THERE'S GOING TO BE A HOUSE COMMITTEE MEETING IN REGARDS TO CALL SENATE BILL 10, AND THEY'RE GOING TO LOWER THAT REVENUE CAP TO 2.5%. IF IT GOES DOWN TO 2.5%, I WILL GUARANTEE WE WILL HAVE TO EITHER, SIGNIFICANTLY CUT OUR SERVICE LEVELS OR WE'RE GOING TO HAVE TO HAVE A VADER ELECTION NEXT YEAR. EVEN IF THEY KEEP IT AT 3.5%, IT'S MORE THAN LIKELY WE'RE GOING TO HAVE TO HAVE A VADER ELECTION. THAT'S A DECISION THAT NEEDS TO BE MADE DOWN THE LINE, BUT I JUST WANT TO PAINT A REALISTIC PICTURE OF WHAT WE'RE LOOKING AT. BUT WITH THAT SAID, THE APPROACH THAT WE'RE GOING TO TAKE IS THE APPROACH WE TAKE ON A LOT OF DIFFERENT AREAS. WE'RE NOT GOING TO HIT YOU TODAY BEFORE YOU NEED TO MAKE A DECISION. THE PROCESS IN TALKING ABOUT THE FY 27 BUDGET STARTS IN OCTOBER. I WAS MESSING WITH MEG, OUR BUDGET DIRECTOR AND TELLING SHE'S NOT GOING TO GET A BREAK BECAUSE AS SOON AS WE PASS THIS BUDGET, WE IMMEDIATELY HAVE TO START WORKING ON THE NEXT ONE. WHY? BECAUSE WE'RE GOING TO HAVE TO TAKE A SERIOUS LOOK AT OUR SERVICE LEVEL. WHAT WE'RE GOING TO DO DURING THE MONTH OF OCTOBER THROUGH JANUARY, WE'RE GOING TO PUT EVERY FRONT LINE DEPARTMENT IN FRONT OF YOU ALL FOR THEM TO SHARE OPERATIONS, SO YOU CAN HAVE THE BEST SENSE OF AND REALLY IS GOING TO BE AN ASSESSMENT. WHAT ARE WE DOING THAT WE DON'T NEED TO DO? OR WE COULD STOP DOING? OR WE COULD LOOK SOMEBODY ELSE COULD PROVIDE? WE HAVE TO HAVE THAT TOUGH CONVERSATION AND WHAT I WANT YOU TO BE ABLE TO DO GOING INTO NEXT YEAR'S BUDGET IS HAVE ALL THE INFORMATION YOU NEED TO MAKE AN INFORMED DECISION. BECAUSE THE REALITY OF THE SITUATION IS IS THAT IF WE HAVE TO DO A VADER ELECTION, IT PUSHES A LOT OF OUR PROCESSES AND TIMELINES AHEAD. BECAUSE ULTIMATELY IF WE'RE GOING TO GO TO THE VOTERS IN NOVEMBER OF NEXT YEAR TO EXCEED THAT WELL, AND JOHN CORRECT ME IF I'M WRONG, I THINK THE 2.5%, IT GOES IN IF IT PASSES, IT GOES INTO EFFECT ON JANUARY 1. YES, IT COULD POTENTIALLY BE AS LOW AS 2.5% NEXT YEAR. WITH THAT BEING SAID, YOU HAVE TO CALL THE ELECTION FOR NOVEMBER, IN ESSENCE, WE'VE GOT TO PUT TWO BUDGETS TOGETHER. WE'VE GOT TO PUT UP ONE UNDER THE 2.5% AND SEPARATE THE CATS COMPONENTS THAT EXCEED THAT AMOUNT. THERE'S GOING TO BE A LOT OF WORK THAT GOES INTO IT. WE'RE READY TO WORK AT IT, AND WE'RE READY TO ENGAGE YOU ON IT, AND BEFORE I TURN OVER TO JOHN, JUST WE'RE GOING TO PUT EVERYTHING OUT THERE. WE HAVE CHRIS FROM NEWGEN, WHO IS GOING TO GO THROUGH OUR RATES AND THERE'S ANOTHER SENATE BILL THAT WE'RE GOING TO TESTIFY ON TOMORROW. [00:20:03] HOUSE BILL 73, AND IT'S ALSO A SIMILAR BILL, HOUSE BILL 46. THOSE BILLS THEY'RE MORE PROBLEMATIC THAN SB 10 WITH THE REVENUE CAPS BECAUSE THEY FUNDAMENTALLY SHIFT HOW WE BUDGET, AND IT'S GOING TO HAVE A DETRIMENTAL AND I'M NOT GOING TO BE THIS ISN'T HYPERBOLIC. IT GOING TO HAVE A CATASTROPHIC EFFECT ON OUR ENTERPRISE FUND AND OUR UTILITY FUNDS. CHRIS IS GOING TO BE IN A POSITION TO WALK YOU THROUGH THAT AND ANSWER YOUR QUESTIONS AND PAINT THE PICTURE ON THAT. AGAIN, IN ADVANCE, I APPRECIATE THE MAYOR PRO TEM, DEPUTY MAYOR PRO TEM FOR GOING DOWN, I APPRECIATE THE WORK THAT YOU'VE DONE THROUGHOUT THIS LEGISLATIVE SESSION AND WHAT WE HAVE TO DO. I PROMISE THIS ONLY TIME I'LL BE ON MY SOAPBOX TONIGHT. I'M GOING TO GET OFF OF IT IS THAT UNFORTUNATELY, OUR LAWMAKERS IN AUSTIN, THEY PASS THESE BILLS WITHOUT TALKING TO A SINGLE CFO, CITY MANAGER, MAYOR, COUNCIL MEMBER. THEY PASSED LAWS WITH NO CONCERN OR IMPACT THAT'S GOING TO HAVE ON THE MUNICIPALITIES. THEN THEY SET UP THESE COMMITTEE MEETINGS WITH 24 HOUR NOTICE WHERE WE'RE SCRAMBLING AND DROPPING EVERYTHING TO BE ABLE TO ARTICULATE WHAT THE IMPACT IS GOING TO BE. THAT'S WHY I APPRECIATE THE FACT THAT YOU'LL DROPPED EVERYTHING AND ARE WILLING TO GO DOWN AND TESTIFY BECAUSE WE HAVE TO LET IT BE KNOWN THE IMPACTS THAT ARE ASSOCIATED WITH THESE BILLS. EVERYBODY CAN GET BEHIND THE CONCEPTS OF LOWER TAX BILLS AND EVERYTHING ELSE LIKE THAT, THAT'S GREAT, BUT YOU HAVE TO TAKE THE PROPER LOOK TO FIGURE OUT WHAT'S GOING TO BE THE IMPACTS. THESE IMPACTS OF THESE BILLS ARE GOING TO BE DETRIMENTAL TO THE TOWN OF FLOWER MOUND. WITH THAT, NOW I'LL JUST PAINT THIS BEAUTIFUL ROSY PICTURE FOR YOU ALL. WE'RE GOING TO TURN OVER TO JOHN AND HE'S GOING TO GET INTO THE LITTLE OF THE WAGON A LITTLE BIT MORE DETAILS OF SOME OF THE THINGS I PROVIDED AN OVERVIEW. THEN MAYOR IS GOING TO COME UP AND GO THROUGH THE PRESENTATION AND AS WE GO THROUGH IT, WE HAVE A COMPLIMENT OF OUR DIRECTORS AND STAFF HERE TO ANSWER ANY TECHNICAL QUESTIONS YOU HAVE ABOUT ANY COMPONENT OF THE BUDGET. WITH THAT, I'LL TURN IT OVER TO YOU, JOHN. >> THANK YOU, JAMES. MAYOR AND COUNCIL, I LIKE TO REUSE FINANCIAL PRESENTATIONS, AND THE REASON WHY IS BECAUSE FINANCES REALLY SHOULDN'T CHANGE THAT MUCH OVER TIME. THIS PRESENTATION IS SOMETHING THAT YOU'VE ACTUALLY SEEN. WE DID IT IN OUR STRATEGIC PLANNING RETREAT, AND I'M GOING TO TAKE IT FROM A DIFFERENT APPROACH THAT I SPOKE TO YOU THAT NIGHT AND THE DIFFERENT APPROACH THAT I SPOKE WITH OUR STAFF WHEN I FIRST PRESENTED IT TO OUR LEADERSHIP TEAM. I WANT TO WALK YOU THROUGH SOMETHING IN THE WAYS THAT I'M RECEIVING THIS YEAR'S BUDGET AND OF OUR FUTURE OUTLOOK. AS MY JOB AS THE CFO IS TO LOOK FORWARD AND TO PROVIDE YOU WAYS TO NAVIGATE YOUR SHIP UP AROUND THINGS THAT ARE COMING AND TO BE AS AGILE AS POSSIBLE AND REACTIVE SO THAT WE CAN KEEP PROVIDING THE SAME LEVEL OF QUALITY SERVICES THAT WE DO. WHY DO WE DO THIS? FINANCIAL STABILITY AND OPERATIONAL SOUNDNESS, INTER RETREATS THIS YEAR ROSE TO THE TOP AND ONE OF THE BIGGEST PRIORITIES FOR OUR COUNCIL. WHY THIS IS SO IMPORTANT IS BECAUSE SUSTAINABILITY IS NOW COMING IN QUESTION, AND IT'S NEVER BEEN MORE IMPORTANT THAN NOW FOR US TO STABLE FINANCIAL MODELS THAT PROVIDE US A PATH FOR LONG TERM SUCCESS. WITH THOSE STRONG FINANCIAL CONTROLS, AS SOON AS WE STARTED SEEING THESE REVENUES DECREASE, WHICH WAS NOT MUCH TIME. I CAN TELL YOU MY OUTLOOK FROM 1ST JULY TO THE END OF JULY RAPIDLY CHANGED BECAUSE WE SAW THINGS HAPPENING THAT HAD NEVER HAPPENED BEFORE IN THE HISTORY OF THE TOWN, AND I'VE GOT DATA TRACKING INFORMATION ALL THE WAY BACK TO 1986. I FOLLOW A LONG LINE OF STRONG FINANCIAL PROFESSIONALS IN THE TOWN OF FLOWER MOUND WHO HAVE BEEN KEEPING TRACK AND LOOKING AT THIS INFORMATION ON AN ANNUAL BASIS. IT'S PROBABLY THE BEST DATASET I'VE EVER SEEN WHEN IT COMES TO THESE THINGS. THIS IS ALL PART OF OUR STREET PLANNING, AND SO THAT FINANCIAL CONTROL, STRONG FINANCIAL CONTROLS, AND THAT BEING PUT FORWARD IS THE MOST IMPORTANT THING MOVING FORWARD OR REALLY SPOKE TO WHERE WE'RE GOING AND WHAT WE'RE DOING. AS I SAID, YOU'VE SEEN THIS BEFORE. WE SAW THIS IN THE BOND ELECTION. THIS WAS THE SAME THING. OUR STRATEGY HAS NOT CHANGED. IF ANYTHING, THIS STRATEGY HAS JUST PAID OFF, AND I'LL TELL YOU WHY. WITH SB2, WHICH WAS A THREE A HALF PERCENT REVENUE CAP ON PROPERTY TAXES IS WITHIN OUR OPERATING FUNDS, IT'S IMMEDIATELY STARTED PUTTING PRESSURE SINCE 2019, PUT PRESSURE ON THE GENERAL FUNDS. WELL, THAT CAUSED US TO MOVE THINGS THAT WE WOULD NORMALLY CASH FUND OF THE GENERAL FUND TO OUR SALES TAX FUNDS. YOU AND TOWN FLIER AMOUNT HAVE HELD NUMEROUS SPECIAL ELECTIONS, AND YOU HAVE HELD WITH THEM FOR YOUR SALES TAX FUNDS SO THAT YOU CAN FUND THINGS LIKE STREETS, PARKS, POLICE, AND FIRE. YOU DEDICATE SALES TAX TO THOSE SO THAT YOU ARE NOT SO DEPENDENT ON PROPERTY TAX, AND THAT IS A LONG TERM GOOD FINANCIAL CONTROL TO HAVE BECAUSE AS YOU SHOULDN'T DEPEND ON ONE REVENUE SOURCE. I'LL TALK A LITTLE BIT ABOUT REVENUE DIVERSIFICATION A LITTLE BIT LATER. BUT WE STARTED MOVING THOSE CAPITAL THINGS. AS WE STARTED APPROACHING THESE LONG TERM CAPITAL PLANNING IDEAS, I SAID DEBT, MAYBE HOW WE NEED TO GO BECAUSE WE'RE GOING TO NEED THOSE SALES TAX FUNDS FOR OPERATIONS. AS I TOLD YOU, WE WOULD NEED THEM, [00:25:02] THIS YEAR, WE NEEDED THEM. WE NEEDED $5 MILLION AND THE GENERAL FUND WOULD HAVE BEEN SHORT BY THAT $5 MILLION IF WE WOULDN'T HAVE MOVED THOSE THINGS OVER TO THE I&S. I WANT TO MAKE IT VERY CLEAR. NOTHING ABOUT THE GO PROGRAM PUT US IN THIS SITUATION. THE GO PROGRAM ACTUALLY GAVE US THE FLEXIBILITY TO BE ABLE TO SHIFT SOME OF THAT SPENDING OVER TO THE SALES TAX FUNDS WHILE STILL BEING ABLE TO PROVIDE ALL THOSE THINGS THAT WE DID WITH THE BOND ELECTION. THIS BOND ELECTION OR NOT, THIS ACTUALLY PROVIDED US FUNDING AND THIS STRATEGY HELPED US SO THAT WE COULD BE AGILE AND MOVE OUT OF THE WAY OF THIS UPCOMING THING. I'M GOING TO LAY OUT EXACTLY WHAT HAPPENS. SALES TAX HAS BEEN FLAT OR STAGNANT FOR THE FIRST TIME IN 28 YEARS. AS I SAID, DATASETS HERE RUN ALONG. I CAN PULL MONTHLY DATA ALL THE WAY BACK 28 PLUS YEARS, AND THIS IS WHAT I CAN SEE. THIS IS THE FIRST TIME WE'VE HAD PROBABLY SALES STAGNANT SALES TAX GROWTH YEAR OVER YEAR, IN 20 YEARS. THAT'S PRETTY UNPRECEDENTED FOR US. FOR AN ECONOMY THAT INFLATES AND HAS GROWN SIGNIFICANTLY, IT'S A GOOD INDICATOR THAT THERE IS SOMETHING ECONOMICALLY HAPPENING AND IT'S CAUSING A CHANGE IN HOW PEOPLE CONSUME THINGS. THAT HAS AN IMPACT ON US. AS A RESULT, WE SAW A LEVELING OF SALES TAX, IT STILL WENT UP 2% FROM LAST YEAR, BUT MONTH BY MONTH, IT IS JUST WAVERING UP AND DOWN. I CAN'T GIVE YOU A FIRM FORECAST THAT IS GOING TO INCREASE. IF YOU FACTOR IN FOR THINGS LIKE INFLATION, WE HAVE SHRUNK. INFLATION SHOWS THAT WE'RE ACTUALLY SHRINKING A LITTLE BIT. THIS ISN'T A RESULT OF ANYTHING THE TOWN DOES, PEOPLE ARE MAKING DIFFERENT DECISIONS. INFLATION HAS HIT EVERYONE HARD. FAMILY MEMBERS, PEOPLE LIKE ANYONE IN THEIR HOMES, IT IS REALLY COST THEM MONEY. THEY'RE MAKING DIFFERENT SPENDING DECISIONS. THAT IS LIKE WE ALL HAVE TO DO, AND THAT'S WHAT WE'RE GOING TO BE DOING, AND THAT'S WHAT YOU'RE GOING TO SEE THROUGHOUT THIS PRESENTATION. THE OTHER THING THAT HIT US IS OVER THE PAST TWO YEARS, FROM OUR CERTIFIED TOTALS FROM TWO YEARS AGO, WE DROPPED 10% IN PROPERTY EVALUATION. THIS NEVER OCCURRED. NEVER HAPPENED, HAVE WE EVER SEEN SOMETHING DECREASE. PART OF THIS IS BECAUSE A BACKLOG OF HOMESTEAD EXEMPTIONS AT ANY CAN. THAT'S PART OF THIS. THAT SHRINK. THE OTHER PART IS A FAILED IMPLEMENTATION OF THE HOMESTEAD EXEMPTION THAT WE INCREASED LAST YEAR. THEY MISSED THAT AND THAT ALSO AFFECT OUR CERTIFIED TOTAL NUMBERS. THEN WE'VE ALSO JUST SEEN HOUSING PRICES WERE OVER INFLATED. THAT'S A BAD THING TO SAY IS DURING COVID, WE SAW LOW INTEREST RINGS BEING GIVEN OUT AND PEOPLE WERE MAKING SPENDING DECISIONS. THEY WERE COMPETING WITH CASH BUYERS AND SO HOME PRICES GOT OVER INFLATED. WHAT WE'RE SEEING NOW IS THAT RESIDENTIAL HOMES ARE NOT SELLING FOR WHAT THEY WERE A COUPLE OF YEARS AGO, AND THAT'S OKAY. HONESTLY, IT'S A NORMAL PART OF THE MARKET, AND IT'S SOMETHING WE SHOULD FUNCTION. THE THE BIGGEST PROBLEM IS THESE ARE OUR TWO PRIMARY REVENUE SOURCES. TAXES IS THE WAY THE GOVERNMENTS FUND THEMSELVES, AND THIS IS HITTING US HARD. I SHOWED YOU THIS SLIDE WHENEVER WE WERE TALKING ABOUT THE BOND ELECTION. BUT THIS IS HOW I EXPLAINED WHY I THOUGHT THAT WE'RE GOING TO KEEP SEEING INCREASING CAPACITY IN OUR I&S FUNDS WAS BECAUSE AS VALUES INCREASED, THE TAX RATE DECREASE. NOW AS I SAID, HAVE NEVER SEEN VALUES DECREASE THAT MUCH EVER BEFORE. THAT'S THE INVERSE OF THE SEESAW. AS TAX VALUES DECREASED, THAT TAX RATE TO MAINTAIN THE SAME AMOUNT OF REVENUE. LUCKILY, WE DIDN'T HAVE SUCH A SHORTFALL THAT OUR NO NEW REVENUE RATE WAS HIGHER THAN OUR CURRENT TAX RATE, BUT WE WERE IN A WINDOW OF PLAY AND 2.5% ACTUALLY WOULD NOT HAVE BEEN FEASIBLE THIS YEAR. OVERALL, THE MOST WE COULD GET IS 1.7 MILLION DOLLAR AT 3.5%. WHEN THEY SAY 2.5%, WE'RE TALKING $1.2 MILLION. AS JAMES SAID, IT'S ABOUT $4 MILLION, IS JUST INFLATIONARY COSTS YEAR OVER YEAR. THAT'S MARKETS AND MERITS AND BEING ABLE TO PAY OUR PEOPLE IN NDPS NON DISCRETIONARY PACKAGES. A BIG PART OF THAT IS SUBSCRIPTION PACKAGES FOR SOFTWARES. THE BIGGER THINGS OF WHY THESE THINGS ARE PROBABLY GOING TO KEEP HAPPENING. THERE IS ECONOMIC UNCERTAINTY RIGHT NOW. UNTIL THOSE THINGS, TARIFFS, ALL THOSE THINGS PLAY OUT. WE ARE LIKELY IN A PLACE WHERE ECONOMIC AND CONSUMER SENTIMENT IS NOT ON THE FIRMS FOUNDATION, AND THAT DOES TAKE A BIT TO CHANGE. IN REALITY, THIS IS ACTUALLY ONE OF THE FEW THINGS THAT PROBABLY COULD CHANGE AND AFFECT OUR NEXT YEAR'S BUDGET. IF WE SAW A COMPLETE SHIFT IN HOW PEOPLE ARE CONSUMING THEIR GOODS, IF THEY INCREASED HOW MUCH THEY WERE CONSUMING, MAM A HIGH RATE HERE IN THE TOWN OF FLOWER MOUND, THIS COULD ACTUALLY OFFSET SOME THINGS THAT WE ARE HAPPENING. LOW HOME SALES. HOMES ARE SELLING, THERE'S ABOUT 70, 80 HOMES IN FLOWER MOUND FOR SALE RIGHT NOW. WE HAVE 20,000 PLUS ROOFTOPS. YOU'RE NOT EVEN HITTING HALF A PERCENT WHEN IT COMES TO HOME SALES. ONE OF THE BIG THINGS THAT CITIES ACTUALLY BENEFIT FROM IS THOSE HOME SALES YEAR OVER YEAR IS, AS PROPERTY TURNS, USUALLY THEY APPRECIATE IN VALUES. WHAT ARE WE ACTUALLY SEEING RIGHT NOW? WE'RE SEEING HOMES THAT PEOPLE PAY TOO MUCH FOR, SELLING FOR LESS. THAT'S ABSOLUTELY WHAT'S SEEING A DROP IN VALUE. [00:30:04] WE ALSO SAW THAT MANY OF OUR RESIDENTS RECEIVED NOTICES THAT THEIR EXEMPTIONS WERE DECREASING. WE GOT A LOT OF CONCERNED PHONE CALLS ABOUT THAT. ONE OF THE REASONS THAT WAS HAPPENING WAS BECAUSE THEIR EXEMPTIONS WERE DECREASING BECAUSE THEY'RE BASED ON THEIR HOMES VALUE. IT SAYS THEIR HOMES VALUES DECREASE, THEIR EXEMPTIONS DECREASED. OVERALL WE'RE SEEING LESS THAN 1% NEW GROWTH, AND THAT'S NOT GOING TO CHANGE BECAUSE THAT WOULD HAVE TO CHANGE BY DECEMBER 31ST OF THIS YEAR FOR IT TO AFFECT NEXT YEAR, FISCAL YEAR 2020 SEVENS BUDGET. IN REALITY, THIS IS PROBABLY A TWO YEAR LOW AND WE'RE GOING TO PICK BACK UP. THE TOWN COUNCIL AND PAST TOWN COUNCILS HAVE SET US UP TO GROW. THE WEST SIDE WILL EVENTUALLY TAKE OFF. WE WILL SEE DEVELOPMENT DOWN IN LAKESIDE, WE WILL SEE THE THINGS HAPPENING AND OCCURRING THAT WILL ADD TO OUR PROPERTY TAX BASE. WE'RE JUST GOING THROUGH A LOW WHICH OUR ECONOMY EXPERIENCES EVERY NOW AND THEN. PART OF THIS IS JUST WEATHERING THE STORM AND TAKING ADVANTAGE OF THAT OPPORTUNITY. HERE'S OUR LARGEST COST DRIVERS. IT'S PERSONNEL, INFLATION, AND MAINTENANCE. I ACTUALLY DID THIS PROPORTIONATELY FOR A REASON. PERSONNEL, YOU WOULD THINK WOULD BE SUCH A BIG ONE BECAUSE THE LARGEST PART OF OUR GENERAL FUND IS PEOPLE. WHAT REALLY GETS US IS MAINTENANCE. THE COST OF ASSETS TO MAINTAIN AND REPLACE THEM OVER TIME, IT'S INFLATIONARY. THE COST OF GOODS FOR CAPITAL COSTS SUCH AS CONCRETE, WOOD, PIPING, ALL OF THOSE THINGS, THOSE THINGS INFLATE FASTER. THE MAINTENANCE, REPAIR, AND REPLACEMENT OF CAPITAL INFRASTRUCTURE IS ONE OF THE LARGEST EXPENSES. WHEN WE TALK ABOUT SPENDING CAPS, THAT'S WHAT THEY DON'T UNDERSTAND IS THAT THE VALUE OF THINGS TO REPLACE THEM IN THE FUTURE, EVEN IF YOU'RE NOT GROWING, YOU'RE REPLACING THAT INFRASTRUCTURE FOR THE PEOPLE WHO LIVE THERE. THEY AREN'T FACTORING THOSE THINGS IN. INFLATION SEEMS TO BE SOMETHING THEY'RE CONSIDERING WITH SPENDING CAPS. THE INFLATION ON THE COST OF CONCRETE WAS NOWHERE NEAR THE OF THE COST OF GROCERIES AND THINGS LIKE THAT. IF THEY USE THAT SAME NUMBER, IT'S NOT GOING TO ACCOUNT FOR IT. IN REALITY, WE'RE JUST GOING TO HAVE TO CHOOSE TO DO LESS AND INFRASTRUCTURE WILL BASICALLY PAY FOR IT AND NOT BE ABLE TO REPLACE IT AS QUICKLY. THESE ARE THE NEAR TERM IMPACTS THAT WE'RE FACING WITH THIS YEAR'S BUDGET. WE REALLOCATED EXPENSES TO THE SALES TAX FUNDS IN THE TUNE OF $5 MILLION. THERE ARE NO NEW PERSONNEL EXCEPT THE ONE PERSON IN THE UTILITY FUND, WHICH IS GOING TO BENEFIT A LOT OF OUR PROGRAMS AND HELP US TRACK OUR ASSETS BETTER SO THAT WE CAN MAINTAIN THEM BETTER. WE DID FUND NPS AND MARKETS AND MERITS BECAUSE PEOPLE ARE HOW WE PROVIDE SERVICES. IT'S AS SIMPLE AS THAT, AND WHEN WE LOSE SOMEONE THAT'S BEEN HERE FOR 10 YEARS, THEIR REPLACEMENT, IT'S GOING TO TAKE THEM FIVE YEARS TO GET BACK TO THE SPEED THAT THE OTHER PERSON WAS. YOU WANT YOUR PEOPLE TO STAY WHERE THEY ARE. WE'VE MADE A CHOICE TO BE AT 65% OF MARKET WHEN IT COMES TO COMPENSATION. IF WE KEEP THAT UP, WE WILL BE ABLE TO MAINTAIN AND BE COMPETITIVE WHEN IT COMES TO RECRUITING PEOPLE AND MAINTAINING ANY OF THE STAFF THAT WE CURRENTLY HAVE. >> THIS IS THE CLIFF PICTURE THAT HAS REALLY NOT CHANGED THAT MUCH SINCE I SHOWED THIS. THE BIG THING THAT I DIDN'T FACTOR IN WHEN I BUILT THIS CHARTS, IT WAS ABOUT TWO YEARS AGO WAS THAT I DIDN'T KNOW THE ECONOMY WOULD TAKE A HIT. NO ONE HAD PREDICTED THAT WE'D BE IN A LOW RIGHT NOW OR ANYTHING ELSE LIKE THIS. THERE'S ALL THESE DOOM SYERS, BUT I DIDN'T REALLY SEE THIS, BUT THIS IS THE POINT THEY WE'RE REACHING. THERE'S AN INFLECTION POINT WHERE OPERATING EXPENSES ARE GOING TO GROW FASTER THAN OPERATING REVENUES BECAUSE IN REALITY, 3.5% ISN'T ENOUGH EVEN BECAUSE IT'S 3.5% OF 40% OF OUR REVENUE. WHEN EVERYONE SAYS YOU GET 3.5%, IT'S NOT EVEN HALF OF OUR REVENUE. REALITY, WE DON'T HAVE MUCH CHOICE ON A LOT OF OTHER ONES. BUT I WILL TELL YOU WHAT WILL HAPPEN IS THE ONES THAT WE DO HAVE CHOICES ON, WE'RE GOING TO BE LOOKING AT EVALUATING. I SAID, OPERATIONAL COSTS ARE GOING TO CONTINUE TO INCREASE, AND IF IT'S FASTER THAN REVENUE, THIS WILL LEAD US TO LIKELY MAKING DECISIONS ABOUT EITHER WHAT SERVICE LEVELS WE PROVIDE, WHAT SPINNY DECISIONS WE'RE GOING TO MAKE IN THE FUTURE, AND IF WE NEED TO GO OUT AND ASK THE VOTERS FOR MORE MONEY. LET ME TELL YOU WHAT'S COMING AND I'M GOING TO PAINT IT WITH A DIFFERENT PICTURE THAN I HAVE SO FAR. WHAT WE ARE GOING TO HAVE IS AN OPPORTUNITY THAT FEW CITIES EVER DO AND THEY DON'T TAKE CARE OF AND THEY DON'T DO IT VERY OFTEN FOR GOOD REASONS, BUT WE ARE GOING TO EVALUATE OUR SERVICES AND ASK THE QUESTION SHOULD WE DO THEM? GOVERNMENTS RARELY DO THIS. THE REASON WHY IS BECAUSE MOST OF THE TIME WE ASSUME THAT YOU WANT THE SAME SERVICES YEAR OVER YEAR. WHEN WE MOVE FORWARD, YOU'LL HAVE A FIRM UNDERSTANDING OF WHAT SERVICES WE PROVIDE AT WHAT COST AND GET TO MAKE THE DECISION THAT SHOULD WE CONTINUE THAT AND HOW THAT AFFECTS SPENDING? AS I SAID, THIS IS A UNIQUE OPPORTUNITY AND I'M HAVING DEPARTMENT HEADS, I'M HAVING MANAGERS. I'M HAVING PEOPLE COME OUT OF THE WORLD, WORK WITH NEW IDEAS AND NEW CREATIVE WAYS THAT WE CAN DO THESE THINGS. AGAIN, THEY DO THIS DURING THE BUDGET PROCESS, BUT WE'RE HAVING DIFFERENT FUNDAMENTAL CONVERSATIONS RIGHT NOW BECAUSE WHENEVER HARD TIMES COME, IT MAKES PEOPLE THINK A LITTLE DIFFERENTLY. [00:35:02] JUST LIKE IN YOUR HOUSEHOLD, YOU'RE MAKING DIFFERENT DECISIONS. WE'RE TRYING TO MAKE THOSE SAME DECISIONS AND TIE THEIR BELTING WEIGHT SO WE CAN, BUT ALSO JUST RETHINK HOW WE DO THINGS, INNOVATE, FIND BETTER WAYS TO PROVIDE SERVICES OR ASK THE QUESTION, SHOULD WE BE PROVIDING THESE SERVICES? OVER THESE WORK SESSIONS, WE WILL PROVIDE AN IN DEPTH LOOK AT OF OUR EXPENSES, OUR PROGRAMS, AND OUR SERVICES, AND REALLY ASK WHAT VALUE THEY BRING AND SHOULD WE CONTINUE OFFERING THEM? THE NEXT THING THAT WE'RE GOING TO DO IS WE'RE GOING TO HIT OUR REVENUE SOURCES. WE NEED TO DIVERSIFY AND WE NEED TO DECREASE RESIDENTIAL PROPERTY TAX DEPENDENCE. WE ARE A CITY WHO IS 70 TO 80% RESIDENTIALLY DEPENDENT, MEANING THAT MOST OF OUR PROPERTY TAXES COMES FROM RESIDENTIAL PROPERTY TAX BASE. COUNCIL IS TAKING AN ACTION AND TO REALLY LOOK AT AND TRY TO GROW THOSE COMMERCIAL SECTORS BECAUSE THAT WILL INCREASE OUR SALES TAX. THAT WILL INCREASE NUMEROUS OTHER THINGS, WHICH IN THE LONG TERM IS THE BETTER PLAY. THAT'S HOW CITIES, OTHER THAN ARE ABLE TO LOWER THEIR TAX RATES MORE IS BECAUSE THEY HAVE ALTERNATIVE SOURCES, AND PROPERTY TAX ISN'T THE LARGEST REVENUE SOURCE. WE'LL ALSO BE EVALUATING OUR CHARGES FOR SERVICE, MAKING SURE THAT WE ARE CHARGING THE FULL COST OF THOSE SERVICES. WE'LL BE LOOKING AT USER FEES AND MAKING SURE THAT WE'RE RECOUPING FULL 100% COSTS IN THOSE. WE'LL BE ACTIVELY LOOKING IN ECONOMIC DEVELOPMENT TO INCREASE SALES TAX AND BRING FORWARD PROJECTS THAT WE KNOW WILL INCREASE OUR SALES TAX BASE. WE'VE ALREADY BEEN DOING THAT, AND YOU'VE SEEN MANY DISCUSSIONS OF SUCH, BUT IT'S BEEN A BIG FOCUS AND IT'S SOMETHING THAT WE'RE GOING TO KEEP FOCUS ON BECAUSE AS WE DIVERSIFY, THIS WILL HELP US. AND SALES TAX PLAYS A KEY PART IN ALL OF THAT. INCREASE IN COMMERCIAL PROPERTY TAX BASE. RESIDENTIAL PLAYS A KEY PART OF THIS, BUT BEING INTENTIONAL ABOUT WHAT COMMERCIAL YOU BRING IN, THE PRICE PER SQUARE FOOT, THE VALUE IT BRINGS, AND THEN THE SALES TAX BASE THAT THAT WOULD BRING, AND THEN THE THINGS THAT IT BRINGS TO OUR COMMUNITY, THAT'S IMPORTANT BECAUSE FLOWER MOUND IS NOT THE ONLY ONE THAT SHOPS IN FLOWER MOUND. WE HAVE NORTH LAKE, ARGYLE, DOUBLE OK, EVERYONE ELSE AROUND YOU. IF YOU BRING A NICE THING, THEY'LL COME. THAT'S GOING TO BE VERY, VERY IMPORTANT BECAUSE WE HAVE SUCH A LARGE FOOTPRINT. WE HAVE A LOT OF AREAS THAT COULD COME HERE AND CHOOSE THIS IS THE PLACE TO SHOP. WHAT ELSE CAN HELP? AS I SAY COMMERCIAL DEVELOPMENTS, NEW HOMES, AND AS I SAID, WE HAVE NEW HOMES ON THE HORIZON, IT'S JUST GOING TO BE 2-3 YEARS BEFORE WE START FEELING THE IMPACT OF THAT ON PROPERTY VALUES. EXISTING HOME SALES. THIS IS NOT SOMETHING WE HAVE CONTROL OF, BUT I WILL TELL YOU IF YOU START SEEING HOUSES START FLYING UP FOR SALE AND OFF THE SHELF AND WE SEE A HUGE TURN IN OUR HOUSING MARKET AND EXISTING VALUES, YOU WILL SEE SOME OF THESE PROBLEMS GO AWAY. FOR THAT TO HAPPEN, REALISTICALLY, THE FED NEEDS TO DROP THE RATES, AND THAT NEEDS TO HAPPEN TO BASICALLY LOWER THE INTEREST RATES AND THE OVERALL LENDING RATE IN THE MORTGAGE RATE BECAUSE MANY PEOPLE LOCKED IN TWO, 3.5% INTEREST RATES A COUPLE OF YEARS AGO, AND THEY'RE NOT GOING TO SELL FOR AN EIGHT PLUS PERCENT INTEREST RATE. THAT DOESN'T MAKE ANY FINANCIAL SENSE. THEY'RE ON GOING TO DO THAT IF THEY HAVE TO. EXISTING HOME SALES WILL HELP US. HOME WAS ABLE TO PROVIDE ME A GOOD LOOK AT WHAT RESIDENTIAL REMODELS AND THOSE PERMITS HAVE? WE'VE ACTUALLY STAYED STEADY OVER THE PAST 6-7 YEARS. WE'VE HAD A STEADY LEVEL OF PEOPLE STILL REMODELING, INVESTING IN THEIR HOMES AND DOING THOSE THINGS. IT HASN'T MOVED UP OR DOWN, IT'S AROUND 70-80 HOMES AND THINGS LIKE THAT, VERY SIMILAR TO THE AMOUNT OF NEW HOMES YOU SEE SELLING OR EXISTING HOME SALES. WE STILL SEE THAT SAME SMALL LEVEL. WHAT WOULD INCREASE THAT SUBSTANTIALLY, AGAIN, IS MORTGAGE RATES, INTEREST RATE, LENDING RATES. ALL OF THOSE THINGS THINGS WOULD HELP US. PEOPLE COMING TO FLY AROUND TO SHOP TO EAT AT OUR RESTAURANTS, TO DO THINGS HERE. THOSE THINGS HELP OUR SALES TAX BASE AND THEY BRING IN MORE BUSINESSES AND MORE MONEY AND THAT AGAIN, HELPS US TO NOT RELY SO MUCH ON PROPERTY TAX. AGAIN, COUNCIL, I'M GOING TO GIVE YOU THIS IS PROBABLY ONE OF THE MORE CHALLENGING BUDGETS WE'VE BEEN ON, BUT IT PRESENTS A UNIQUE OPPORTUNITY TO EVALUATE SERVICES TO MAKE A DECISION THAT FEW DO. I READ A BOOK THAT I THREW ACROSS THE ROOM. THIS YEAR, IT WAS CALLED FIXING THE MUNICIPAL FINANCE CRISIS, AND I THREW ACROSS THE ROOM BECAUSE I DIDN'T LIKE THE SOLUTION AT THE END OF IT. BUT IT WAS WRITTEN BY A FINANCE PROFESSIONAL OUT IN CALIFORNIA AND HE WROTE THIS AFTER 20 PLUS YEARS EXPERIENCE AND HE LAID OUT EVERYTHING THAT I SEE WRONG IN OUR INDUSTRY AND THINGS THAT GO WRONG IN FINANCE IN HIS SIMPLEST ANSWER AT THE END, AND THIS IS WHY IT GETS SO MAD AS HE SAYS, HE SAYS, IF YOU WANT IT TO COST LESS, DON'T DO IT. THAT SEEMS A LITTLE ABSURD, BUT AT THE SAME TIME IT'S THAT SIMPLE IT ULTIMATELY COMES DOWN TO THAT. DO WE VALUE THE SERVICE? DO WE WANT TO CONTINUE IT AND ARE WE OKAY WITH THE PRICE? THAT'S WHAT HE WAS REALLY GETTING TO. HE WAS MAKING A MUCH MORE CONSERVATIVE THING THAT WE SHOULD ONLY DO POLICE SERVICES, BUT THERE'S A REASON I THREW THE BOOK ACROSS ROOM, BUT HE PRESENTED A GOOD POINT. IS REALITY, WE NEED TO LOOK AND EVALUATE OUR SERVICES AND IT'S GOOD TO DO IT EVERY SO MANY YEARS, AND THIS IS GOING TO FORCE US TO DO IT AND IT'S A GREAT OPPORTUNITY AND OUR STAFF IS RISING TO THE OCCASION TO DO IT. [00:40:04] THAT GIVES YOU A BROAD PHILOSOPHICAL LOOK AT WHERE WE'RE AT WHAT WE'RE DOING AND WHERE WE'RE GOING. COUNCIL L, I HOPE YOU DON'T SEE THIS IS JUST A DOM AND GLOOM BUDGET. THIS IS OUR OPPORTUNITY TO REALLY EVALUATE THIS AND LOOK AND TAKE A STEP FORWARD MORE CONFIDENTLY THAN PROBABLY YOU EVER HAVE BEFORE BECAUSE YOU'RE GOING TO FUNDAMENTALLY KNOW WHAT THINGS ARE IN YOUR BUDGET, WHAT SERVICES YOU PROVIDE AND WHAT THEY COST YOUR RESIDENTS. I'M GOING TO SORT OVER MEG SHE'S GOING TO DIG INTO NUMBERS. WE'RE GOING TO GIVE YOU THE NORMAL FINANCIAL PRESENTATION THAT WE DO EACH YEAR, AND IF YOU NEED ANYTHING, WE'LL BE HERE. >> GOOD EVENING, MARY AND COUNCIL. YES. I LIKE JAMES VIEW. THIS HAS BEEN THE HARDEST BUDGET AND YET THE EASIEST BUDGET. I WOULD BE REMISS IF I DON'T THANK ALL OF THE DEPARTMENTS THAT PUT IN THEIR WORK, THAT RESPOND TO MY COUNTLESS E-MAILS, TEXTS, QUESTIONS, AS I'M GOING THROUGH THEIR INFORMATION TO CONSOLIDATE IT TOGETHER. THIS PROCESS IS ABSOLUTELY A TEAM EFFORT BY ALL OF OUR DEPARTMENTS. THEY ARE SUBJECT MATTER EXPERTS IN HOW TO RUN THEIR OPERATIONS AND SO I AM EXCITED, WE'RE ACTUALLY GOING TO GET THE CHANCE TO SHOWCASE THAT AS WELL, FOR YOU, FOR OUR PUBLIC. AS WE GO THROUGH THIS, WE'LL ANSWER QUESTIONS, I'LL ANSWER QUESTIONS YOU MAY HAVE, I MAY TOSS IT BACK TO OUR DEPARTMENTS TO COME BACK AND ANSWER BECAUSE THEY ARE MORE INTIMATELY FAMILIAR WITH THE INFORMATION THAT THEY'RE PRESENTING FOR US. WITH THAT. JAMES TOUCHED ON THIS, THE BUDGET IS A POLICY DOCUMENT. WHERE YOU ARE WILLING TO SPEND YOUR DOLLARS IS WHERE YOU ARE PUTTING PRIORITY AND HOW WE DELIVER THOSE SERVICES. FOR ANY OF THE PUBLIC THAT MAY BE WATCHING AND MAY NOT UNDERSTAND THAT. IT'S NOT JUST NUMBERS. IT IS TRULY WHAT IT TAKES, THE RESOURCES REQUIRED TO EXECUTE THE POLICIES THAT COUNCIL HAS IDENTIFIED. THAT'S WHY IT IS SUCH AN IMPORTANT DOCUMENT AND WHY SO MUCH GOES INTO IT. IT'S AN OPERATIONAL PLAN. IT IS A BLUE FRONT PRINT. YES, AT THE END OF THE DAY, IT IS THE NUMBERS IN SENSE AND HOW DOES IT BALANCE. BUT IT DOES ALLOW US TO LOOK AT THOSE SERVICES, TO SEE WHAT WE'RE FUNDING BECAUSE AGAIN, WHAT WE'RE FUNDING IS WHAT WE PRIORITIZE. PHASES OF THE BUDGET CYCLE. IT REALLY DOES NEVER END. IT'S JUST REALLY NEVER GOING TO END NEXT YEAR IS WHAT IT WILL FEEL LIKE. BUT IT DOES START WITH THE POLICY DIRECTION. THOSE STRATEGIC RETREATS THAT YOU AS COUNSEL HOLD TO HELP STAFF UNDERSTAND WHAT DO YOU WANT TO SEE COME THROUGH IN THE BUDGET AND THROUGH SERVICES THAT ARE ADDED AND ENHANCED? TAKING THAT POLICY DIRECTION, THEN IT KICKS IT OVER TO STAFF TO DO THE BUDGET DEVELOPMENT. THAT IS A GOOD PORTION OF THE YEAR. IS THAT DEVELOPMENT IN THAT POLICY DIRECTION. THEN WE COME TO WHERE WE'RE AT NOW, WHICH IS THE ADOPTION, AND THEN POST ADOPTION, IT'S STARTING BACK OVER. WHAT ARE THE ACTION PLANS TO FULFILL THE POLICY THAT YOU HAVE JUST APPROVED? WHAT ARE THOSE RESULTS? WHAT ELSE CAN WE LEARN FROM OUR CITIZENS? IS THAT THE INFORMS HOW DO WE SHIFT THE POLICY INTO THE NEXT YEAR? OUR BUDGET IS SPLIT INTO TWO DIFFERENT PARTS, THE OPERATING BUDGET, WHICH IS THE BULK OF WHAT WE HAVE FOR YOU AND THE BULK OF WHAT GETS CONSIDERED DURING THIS PART OF THE PROCESS. THAT IS THE SALARIES, IT IS THE SERVICES, THE CONTRACTS, THE MAINTENANCE, ALL OF THAT. THEN WE DO HAVE OUR CIP, WHICH IS A FIVE YEAR PLAN. THIS TIME, FOR THE FIRST TIME THIS YEAR, OUR BUDGET DOCUMENT ACTUALLY HAS GREATER DETAIL ON ALL FIVE YEARS OF THE PROPOSED PROJECTS. I DO WANT TO GIVE SOME BIG PROPS THERE TO OUR CIP TEAM AND WHAT THEY'VE PUT TOGETHER WITH OUR TOOLS TO HELP WITH INFORMING THAT. BUT WITH THAT DOES COME SOME FLUCTUATION IN SOME OF THE NUMBERS. CAPITAL PROJECT SPENDING DOES BALLOON, IF YOU WILL, OUR BUDGET AUTHORITY, AS COUNCIL IS AWARE, YOU HAVE AUTHORIZATION TO ADOPT ONE YEAR OF BUDGET, YOU CAN'T COMMIT FUTURE COUNCILS TO SPENDING. THAT FORCES US INTO A LITTLE BIT OF A SHELL GAME, IF YOU WILL, BECAUSE CIP CAPITAL PROJECTS RARELY WILL FALL WITHIN THE BOUNDS OF A SINGLE FISCAL YEAR. MANY OF THEM TAKE TWO, THREE, FIVE YEARS TO COMPLETE. BECAUSE WE NEED YOU TO REAUTHORIZE THAT AUTHORITY, [00:45:02] WE WILL ALWAYS HAVE VERY HIGH CAPITAL BUDGET NUMBERS BECAUSE WE'RE AUTHORIZING THE EXPENSE OF THE ENTIRETY OF THE REMAINING PROJECT BUDGET, AND IT WILL ROLL OVER FOR SEVERAL YEARS. THERE IS SOME ES AND FLOWS WHEN IT COMES TO CAPITAL BUDGET SPENDING. THIS IS A CHANGE THAT WE STARTED LAST YEAR, SO JUST REMINDING YOU, IT LOOKS LARGE, AND IN SOME PLACES, IT LOOKS LIKE WE'RE NOT BALANCED. THAT'S BECAUSE IT'S HAVING TO DO WITH THOSE EXPENDITURES THAT WERE FUNDED IN AN INITIAL YEAR AND ARE STILL ROLLING THROUGH AS WE COMPLETE THOSE PROJECTS. OUT OF THE OPERATING BUDGET, THOUGH, WE HAVE OUR BASE BUDGET, WHICH IS THE TARGET NUMBERS, IT'S WHAT'S BEEN APPROVED IN PRIOR YEARS, IT'S THE PERSONNEL AND SALARY EXPENSES. WE HAVE THE NON DISCRETIONARY PACKAGES. THIS IS REALLY A MEASURE OF INFLATION. THIS IS HOW THE COSTS ARE INCREASING. IF YOUR CABLE PROVIDER, NO ONE ELSE CABLE ANYMORE, BUT YOUR INTERNET PROVIDER HAS AN INCREASE YEAR OVER YEAR. THAT WOULD BE WHAT WE WOULD CONSIDER A NON DISCRETIONARY. WE STILL NEED THAT SERVICE, THAT SERVICE COST IS GOING UP. MANY CONTRACTS HAVE BUILT IN A PERCENT INCREASE THAT WILL INCLUDE EVERY YEAR. THAT'S WHAT WE'RE SEEING IN NON DISCRETIONARY, IT'S INFLATION. IT'S THE COST OF DOING BUSINESS GOING UP TO PROVIDE THOSE SAME LEVEL OF SERVICES. THEN WE HAVE OUR DECISION PACKAGES. THESE ARE ENHANCEMENTS, OUR SERVICE ADS, NEW PROGRAMS, NEW EQUIPMENT, AS JAMES HAS ALREADY MENTIONED, THERE ARE VERY FEW IN THIS YEAR'S BUDGET. JUST LOOKING AT SOME OF THE COMPARISONS. THIS IS ACF DATA. WE'RE LOOKING RIGHT NOW A YEAR IN REAR AS WE'RE LOOKING AT IT. FLOWER MOUND. THESE ARE OUR BASE IDENTIFIED BENCHMARK CITIES. WE'RE PRETTY MUCH RIGHT IN THE MIDDLE WHEN IT COMES TO POPULATION. WHEN WE LOOK AT TAX RATE, AGAIN, THIS IS PRIOR ADOPTED, NOT NECESSARILY WHAT THEY'RE CONSIDERING AT MEETINGS LIKE THIS ONE DURING THIS TIME OF YEAR. WE'RE DOWN IN THAT BOTTOM THIRD WITH OUR TOTAL TAX RATE, THAT'S PER $100 EVALUATION. WHEN WE LOOK AT CITIZEN SERVED PER FTE, AGAIN, WE'RE IN THAT SAME POINT. RIGHT NOW, BASED ON OUR POPULATION FROM THE 2024 AFR, AND FROM THE BUDGET DOCUMENTS ON ADOPTED FTES, WE'RE RIGHT AT ABOUT 108. I LIKE THIS CHART BECAUSE IT SHOWS WE'RE NOT SITTING HERE BOLSTERING UP FTES. WAY IN EXCESS OF HOW OUR POPULATION GROWTH IS SHOWING. YOU CAN SEE THERE'S THAT POINT WHERE THE FTE COUNT OR THE POPULATION IS DOWN, BUT FTES MAY NOT QUITE CAUGHT UP. THERE IS SOME WHERE WE'RE GOING TO HAVE TO DO SOME STAFFING AS GROWTH IS HAPPENING AND WE CAN EXPECT THAT TO HAPPEN. WE DO SOMETIMES HAVE TO STAFF IN ADVANCE OF SOME OF THAT GROWTH ACTUALLY BEING REALIZED. YOU CAN EXPECT AS WE HAVE DEVELOPMENT COMING IN THE NEXT FEW YEARS, THAT THAT MAY BE SOME THINGS THAT WE NEED TO WORK THROUGH AND CONSIDER. THAT MAY SPIKE IN THE NEXT IMMEDIATE FEW YEARS, WHICH WOULD BE EXPECTED AND THEN WOULD CATCH BACK UP AS THE POPULATION ACTUALLY MOVES FORWARD. LOOKING AT OUR FINANCIAL OVERVIEW, I WILL REMIND YOU, YES. THIS LOOKS VERY MUCH LIKE WE'RE GOING IN THE HOLE, AND WE ARE NOT. YOU SEE THAT NET DIFFERENCE COLUMN. WE'VE CALLED OUT FOR THE MOST PART, OUR PRIMARY OPERATING FUNDS, GENERAL FUND, YOU CAN SEE THERE REVENUES ARE IN EXCESS OF EXPENDITURES AND THERE ARE SOME ONE TIME EXPENDITURES IN THAT DOLLARS AS WELL SO WE HAVE A VERY BALANCED GENERAL FUND BUDGET AS WE'VE PROPOSED AND PRESENTED IT TO YOU. DEBT SERVICE FUND. I WILL CAVEAT THAT. WE'LL TOUCH BACK TO THAT IN A LITTLE BIT BECAUSE THAT IS SOMETHING AS WE LOOK AT THE NUMBERS, WE REALIZE WE NEED TO ADDRESS, AND THAT WILL BE SOMETHING WE'LL BE ASKING COUNCIL FOR SOME MINOR CHANGES. UTILITY FUND LOOKS GOOD, STORM WATER FUND, AND THEN YOU GET INTO THE SPECIAL REVENUE FUNDS. WE'RE SEEING THAT NET DIFFERENCE THAT IS NEGATIVE, THAT IS USE OF FUND BALANCE. IT'S MONIES THAT ARE IN THE BANK. MONIES THAT WERE COMMITTED TO PROJECTS, BUT AGAIN, MAY NOT HAVE BEEN SPENT WHEN THEY WERE RAISED OR OTHER FUND BALANCE. THESE ARE ALL APPROPRIATE USES, SPECIAL REVENUE FUNDS, OFTENTIMES ARE ALSO REGULATED BY LEGISLATION ON WHAT WE CAN USE THOSE FUNDS FOR. SOMETIMES WE'RE LETTING THE FUNDS BUILD UP AND THEN WE'RE DOING A LARGER PURCHASE, THINGS LIKE THAT. INTERNAL SERVICE FUNDS, THAT'S GOING TO INCLUDE OUR VEHICLE REPLACEMENT. THAT'S PART OF WHERE YOU'RE SEEING THAT USE OF FUND BALANCE, AGAIN, PLANNED AND EXPECTED. THEN CAPITAL PROJECT FUNDS, WE ABSOLUTELY WOULD EXPECT TO SEE THOSE USE OF FUND BALANCES, USE OF PRIOR REVENUES TO CONTINUE FUNDING THE BUDGET AUTHORITY FOR THIS YEAR. BUT YOU CAN SEE EVEN AT THE END OF THE DAY, [00:50:02] WE'RE STILL ESTIMATING AN ENDING FUND BALANCE ACROSS ALL OF OUR FUNDS OVER $155 MILLION. APPROPRIATE USES. THE ONE THING, AND WE'VE TALKED ABOUT THIS BEFORE. THE ONE THING YOU DON'T EVER WANT TO HAVE IS TO HAVE YOUR ONGOING EXPENDITURES BE OVER AND ABOVE YOUR ONGOING REVENUES, AND NONE OF OUR FUNDS HAD THAT CIRCUMSTANCE HAPPENING. >> YOU CAN SEE HERE THIS IS THE GENERAL FUND BUDGET EXPENDITURES VERSUS REVENUES AND ONE TIME. YOU CAN SEE THERE'S A PRETTY GOOD CHUNK OF ONE TIME EXPENDITURES ON THAT BAR. I DO ACTUALLY PROMISE THERE IS A ONE TIME REVENUE SITTING ON THERE, TOO. IT IS JUST SO SMALL IN PROPORTION THAT IT JUST LOOKS LIKE THE ENDING LINE. THIS IS LOOKING AT OUR OPERATIONS, SO THIS DOES NOT INC CAPITAL REVENUES. YOU CAN SEE THAT WHEN WE LOOK OVERALL, THIS IS UTILITY FUNDS. THIS IS INCLUDING ALL THE SALES TAX FUNDS, ALL OF THAT. YOU SEE 22% FOR PROPERTY TAX, 13% FOR SALES TAX. MISCELLANEOUS REVENUE HAS INTEREST INCOME IN OUR GOVERN RENAL REVENUE, THINGS LIKE THAT. I NOTE, FINES AND FEES OFTENTIMES GET A LOT OF SCRUTINY, 1% OF OUR BUDGET. WE ARE CLEARLY NOT USING FINES AND FEES AS A BUDGET BALANCING MEASURE, BUT WE DO ANTICIPATE WE WILL HAVE REVENUE FROM THOSE CATEGORIES, AND SO WE HAVE THAT IN THERE. THEN WHEN WE LOOK AT EXPENDITURES BY CATEGORY. AGAIN, FOCUSED ON OPERATIONS, YOU CAN SEE 32% PERSONNEL. AGAIN, THIS IS BECAUSE IT IS ALL FUNDS, BECAUSE IF YOU LOOK ABOUT HALF A QUARTER OF THIS BUDGET IS THE CONTRACTUAL SERVICES AND THEN OUR WHOLESALE WATER, AND THEN ANOTHER 27% FOR CAPITAL OUTLAY. AGAIN, THAT'S BECAUSE WE HAVE PROJECTS IN PARK DEVELOPMENT FUND IN OUR STREET MAINTENANCE THAT ARE STILL BEING FUNDED OUT OF THOSE SALES TAX, BUT THEY ARE CAPITAL PROJECTS AND THIS DOES ALSO INCLUDE UTILITY DEBT. WHEN WE LOOK AT OUR FINANCIAL GOALS, OUR BENCHMARK TO SEE HOW ARE WE DOING KNOWS FOR THIS YEAR, WE ACTUALLY DO HAVE A RED FLAG, AND WE BROUGHT UP THAT WE HAD THAT DEBT SERVICE FUND THAT WE NEED TO RESOLVE AND SO WE ARE PROPOSING THAT WE'LL INCREASE A LITTLE BIT MORE OF THE TRANSFER FROM OUR FIRE DISTRICT FUND FOR THE DEBT THAT'S SPECIFICALLY RELATED TO OUR FIRE STATIONS TO MAKE THAT BALANCE UP AND GET US BACK IN COMPLIANCE WITH OUR FINANCIAL POLICIES. WE STARTED THIS VIEW LAST YEAR, LOOKING AT SERVICE LEVELS. AGAIN, ON THAT SAME PREMISE, PROVIDED COUNCIL IS COMFORTABLE WITH THE SERVICE LEVELS WE HAVE, AND OF COURSE, WE WILL START THE DEEP DIVE FOR NEXT YEAR TO DO A MUCH CLOSER LOOK AT THESE. THAT'S 65.7% OF THIS BUDGET THAT'S BEEN PRESENTED TO YOU. THAT'S OUR BASE BUDGET PLUS OUR NDP, SO OUR INFLATIONARY FACTOR, AND THEN PRIOR AUTHORIZED CAPITAL PROJECTS. OUR DECISION PACKAGES THIS YEAR ACROSS ALL FUNDS IN OUR OPERATION SECTION IS 0.2% OF THIS YEAR'S BUDGET, AND THE NEW CAPITAL PROJECTS IS 34%. THE SPIKE THERE IS VERY MUCH RELATED TO THE BOND APPROVED. VOTERS APPROVE THAT. THE PLAN IS TO MOVE FORWARD WITH THOSE PROJECTS, HENCE THE NEW CAPITAL SPENDING THAT IS EXPECTED IN THIS YEAR'S BUDGET. BUT AS STAFF IS BUILDING OUR BUDGET DOCUMENT, WE DO WANT TO KEEP THAT STRATEGIC FOCUS. WHAT ARE THE FOCUS AREAS THAT COUNSEL HAS IDENTIFIED HAVE CONVEYED TO STAFF? THAT IS THE VIEW AND THE LENS WITH WHICH WE WANT TO PREPARE RECOMMEND DECISION PACKAGES. ALL OF THAT SHOULD BE UNDER FULFILLING COUNSEL'S POLICY OBJECTIVES AND SO WE DO HAVE INCLUDING OUR MARKET MERIT PACKAGES FOR COMPENSATION. WE HAVE 4.96 MILLION IN DECISION PACKAGES. A GOOD PORTION OF THAT GOES TO PUBLIC SAFETY, PARKS AND RECREATION, INFRASTRUCTURE, ECONOMIC DEVELOPMENT, ENVIRONMENT AND COUNTRY FEEL, AND COMMUNITY ENGAGEMENT ARE THE AREAS WITH WHICH OUR DECISION PACKAGES FALL FOR THIS YEAR'S PROPOSED BUDGET. WE DID MENTION 100. I'M SORRY. YES? >> JAMES SAID THAT WE HAD LESS THAN 1 MILLION IN DECISION PACKAGES. WHAT'S THE DIFFERENCE HERE? >> FOUR MILLION FOR COMPENSATION. >> THIS COMPENSATION IS A DECISION PACKAGE THAT IS THAT IN? >> IT'S NOT CALLED OUT IN THE PROPOSED BUDGET BOOK, BUT I WILL HAVE IT BROKEN DOWN IN AS WE CONTINUE THROUGH THE SLIDES. >> OKAY. THANK YOU. >> NEW CAPITAL PROJECTS FACILITIES. [00:55:01] THAT'S GOING TO INCLUDE THE PERFORMING ARTS CENTER IN THE TURS, PARKS AND TRAILS WITH A GOOD PORTION OF THAT COMING THEN FROM THE BONDS, STREETS, AGAIN, WITH THE BONDS. THEN WE HAVE WATER, WASTEWATER, SIGNALS, AND THEN STATER PROPOSED PROJECTS. HERE IS THAT 4 MILLION, AGAIN, JUST LIKE LAST YEAR, MAKING SURE OUR PEOPLE ARE ADEQUATELY COMPENSATED. THIS IS WHERE WE FIND THAT FINANCIAL STABILITY AND OPERATIONAL SOUNDNESS BECAUSE THERE IS A COST TO TRAIN PEOPLE IF PEOPLE CHOOSE TO LEAVE. AND SO FINDING THAT BALANCE WITH OUR COMPENSATION PACKAGES SO A 3% MERIT, THE COMPENSATION STUDY WITH HR TO REMAIN WITHIN THAT POLICY TARGET OF 65% OF MARKET. OUR FTE SUMMARY. I DO WANT TO MAKE A NOTE. ERRORS HAPPEN, ESPECIALLY WHEN YOU'RE EDITING A BUDGET DOCUMENT. I WILL TELL I READ BOOKS, I HAVE A FULL EDITING TEAM AND I CAN STILL FIND ERRORS. BUT TO JUST COME FORWARD, IT DOESN'T AFFECT WHAT IS PROPOSED FOR THIS COMING YEAR. BUT IN THE COLUMN, PARTICULARLY FOR THIS YEAR'S BUDGET, WE DID FIND AN ERROR. WE HAD HAD ONE POSITION MISTAKENLY DUPLICATED, AND THEN PUBLIC WORKS HAD ACTUALLY COMBINED TWO POSITIONS, SO WE SHOULD HAVE BEEN NET DOWN. FROM WHAT WAS ADOPTED FOR LAST YEAR. YOU WILL SEE NOW ON THE ONLINE BUDGET BOOK, IT WILL LIST THE FY24 AT 728 POSITIONS, AND THEN WE ARE PROPOSING TO ADD ONE BACK WITH THIS BUDGET. IF YOU SEE THAT AND SEE THAT IT'S DIFFERENT, IT IS BECAUSE HR WAS KIND ENOUGH TO POINT US OUT THAT WE HAD OVERLOOKED AND TO GET THAT FIXED. SO, BUT WE ARE PROPOSING 729 FULL TIME EQUIVALENTS. YOU CAN SEE THE BREAKDOWN. IT'S PRETTY MUCH THE SAME. THIS IS OUR ONLY NEW PROPOSED POSITION. YOU'LL NOTICE ALSO, WE DID CORRECT THE TITLE AS IT WILL BE POSTED AND APPROVED AFTER HR SALARY SURVEY. AN ASSET MANAGEMENT ANALYST, THIS WILL BE IN PUBLIC WORKS TO WORK WITH OUR ASSET TEAM, TO IMPROVE OUR CAPITAL FUNCTIONING, IMPROVE TRACKING. THAT'S $98,000. WHEN WE GET TO PUBLIC SAFETY, WE'VE GOT TWO DECISION PACKAGES BEING RECOMMENDED. THESE ARE FUNDED BY CRIME TAX SO THESE ARE NOT GENERAL FUND PROJECTS. THEY ARE PRIMARILY ONE TIME ITEMS, BUT IT IS AN AES MULTI KEY RADIO ENCRYPTION SYSTEM FOR POLICE, AND THEN A WIRELINE CONNECTION, WHICH IS FOR OUR DISPATCHERS BACK TO DENTON COUNTY. PARKS AND RECREATION. WE HAVE INDEPENDENCE FEST, AND THEN WE HAVE SOME PROFESSIONAL DEVELOPMENT AND TRAINING. WE HAVE A LOT OF BIG THINGS COMING WITH PARKS AND RECREATION, WE WANT TO MAKE SURE OUR STAFF IS ADEQUATELY PREPARED TO MANAGE THOSE. THAT IS THERE. I WILL MAKE A KEY, WE ARE RECOMMENDING TO REMOVE THE INDEPENDENCE FEST. IT WAS BEING PROPOSED FROM THE PARKS FB SALES TAX. WE INADVERTENTLY OMITTED A STEP AND WE HAVE NOT BROUGHT IT TO THE PARKS BOARD SO THAT STAFF WOULD PROPOSE IS THAT WE REMOVE IT FOR NOW.IF IT IS STILL SOMETHING THAT COUNCIL WISHES, WE CAN HAVE OUR PARKS TEAM RUN THROUGH THE STEPS TO MAKE SURE THE BOARD IS ADEQUATELY APPRISED OF THE REQUEST, CAN MAKE THE RECOMMENDATION, AND THEN WE CAN DO A BUDGET AMENDMENT. >> IS THAT NECESSARY? >> UNFORTUNATELY, YES, BECAUSE OF STATE GUIDELINES WITH HOW THOSE FUNDS WORK. ECONOMIC DEVELOPMENT. THEY HAVE REQUESTED A BUDGET. THIS WILL COME OUT OF HOTEL MOTEL OCCUPANCY TAX TO HELP US PROMOTE THE TOWN. BRING IN VISITORS, BRING IN TOURISM DOLLARS, SALES TAX DOLLARS BUT ALSO HOPEFULLY ENCOURAGE BUSINESSES TO COME MAKE FLOWER MOUND THEIR HOME AS WELL AND WORK ON DIVERSIFYING THAT BASE THROUGH THAT STRATEGY. AGAIN, THIS WILL COME FROM HOTEL OCCUPANCY TAX, THAT IS NOT A GENERAL FUND DECISION PACKAGE, BUT IT WILL GIVE THAT ECONOMIC DEVELOP SOME FLEXIBILITY AND SOME ABILITY TO PUT SOME MARKETING PROMOTIONAL MATERIAL IN NATIONAL MAGAZINES. TREE REBATE PROGRAM. THIS IS FROM THE TREE PRESERVATION FUND, AND IS TO ADDRESS THE COUNCIL REQUESTION INITIATIVE TO PROVIDE REBATE OPTIONS FOR RESIDENTS THAT WILL PLANT NATIVE TREES AND INCREASE OUR TREE CANOPY. IN COMMUNITY ENGAGEMENT, WE ARE PROPOSING A CAPITAL PROJECT TRACKING SOFTWARE. THIS WILL HELP OUR CIP TEAM NOTIFY RESIDENTS. IF CAPITAL PROJECTS HAPPEN TO BE IN THEIR NEIGHBORHOOD, THEY'LL BE ABLE TO SUBSCRIBE TO UPDATES AND STEPS AND PROCESSES BE ABLE TO BE PROMOTED MORE EASILY WITH OUR CIP TEAM AS PROJECTS PROGRESS, AND THEN POLICE WILL GET THEIR OWN DEDICATED WEBSITE UNDER THE CIVIC PLUS UMBRELLA WORKING WITH COMMUNICATIONS. [01:00:03] ANY QUESTIONS ON THE DECISION PACKAGES THAT ARE RECOMMENDED FOR FUNDING? >> YEAH, IF YOU WANT TO GET INTO THAT NOW. >> CERTAINLY? >> CHIEF. THE ENCRYPTION ITEM. I GUESS I WAS UNDER THE IMPRESSION THAT IF YOU HAD A POLICE SCANNER, YOU COULD LISTEN TO POLICE RADIOS, BUT WE HAVE ENCRYPTION TODAY AND WE'RE GOING TO GET A MORE ENHANCED ENCRYPTION UNDER THIS. WHAT'S THE'S HAPPENING? ARE PEOPLE LISTENING IN? IS THAT CAUSING THIS? >> THE NUMBER ONE THING IS CONFIDENTIALITY FOR CITIZENS. SO POLICE TALK ABOUT ALL YOUR PERSONALLY IDENTIFYING INFORMATION. WE TALK ABOUT INJURIES AND MEDICAL. WE READ OFF YOUR DRIVER'S LICENSE. SOMETIMES WE ASK FOR SOCIAL SECURITY CARDS. ALL THAT HAPPENS IN ROUTINE BUSINESS FOR POLICE. USUALLY WHEN YOU'RE DEALING WITH THE POLICE, YOU REALLY DON'T WANT ANYBODY TO KNOW ANY OF THE DETAILS, BUT IN ORDER FOR US TO DO OUR JOB, WE HAVE TO REALLY GET INTO ALL THAT CONFIDENTIAL STUFF AND SO WE'RE GOING TO SAY IT OVER THE RADIO. IT'S REALLY TO PROTECT THEM FOR THAT. >> WE'RE DEALING WITH PII. >> RIGHT TO ENCRYPT IT. >> WHAT'S THE ISSUE WITH THE CURRENT LEVEL OF ENCRYPTION? >> IT'S 16 BIT ENCRYPTION. IT IS LISTED AS BASICALLY WORTHLESS. YOU CAN CRACK IT WITH A LAPTOP AND NO SPECIAL EQUIPMENT IN LESS THAN 11 MINUTES. ONE OF THE OTHER REASONS WE WANT IT, BESIDES THE OFFICER SAFETY IS THAT ALL OUR AREA AGENCIES ARE GOING TO THIS 256 BIT ENCRYPTION, SO WE CAN NO LONGER HEAR THE RADIOS. WE CAN NO LONGER TALK TO THEM ON THE RADIO. WHEN LOUISVILLE WENT TO 256, WE CAN'T TALK TO THEM. I SEE SO IT'S INTEROPERABILITY THING. >> THANK YOU, CHIEF. >> DID YOU WANT TO ASK ON THE OTHER ONE? >> WIRE LINE? I THINK I'M PRETTY COMFORTABLE WITH THAT. DID YOU HAVE ANY QUESTIONS ABOUT THE WIRE LINE? >> NO, I'M OKAY. >> ALL RIGHT. THANK YOU. >> THANK YOU. I DID WANT TO ASK YOU A QUESTION ABOUT THE INDEPENDENCE FEST. YES. IS THAT'S ABOUT 150 OF THAT 157? >> WAS 150,000 IT WAS A ONE TIME TO ENHANCE SPECIFICALLY THE 2026 BECAUSE IT WOULD BE THE 250 IN AND I HAD AT THAT WAS WAS ON MY HEAD TODAY. >>IS GOING TO BE CORRECTED SO IT SHOWS AS COMING FROM 4B? >> IT WAS RECOMMENDED AND INCLUDED IN 4B, SO WE NEED TO REMOVE IT UNTIL IT CAN GO THROUGH THE STEPS TO GO THROUGH THE BOARD APPROVAL TO HAVE IT RECOMMENDED. >> WOULD THAT QUALIFY TO COME OUT OF THE HOT HOTEL? >> NO. EVEN THOUGH THAT COULD BE CONSTRUED AS AN EVENT TO BRING HEADS AND BEDS MARKETING. >> GENERALLY SPEAKING, I WOULD SAY INDEPENDENCE FEST ARE USUALLY VIEWED AS BEING FOR THE RESIDENTS OF THE COMMUNITY. MOST PEOPLE DON'T GO HOP TO OTHER. >> IF WE KNOW WE HAVE LOTS OF VISITORS COMING FROM OUTSIDE OF FLY. >> IT ALSO IS PARTIALLY FIREWORKS AND THAT HAS STRICTLY BEEN LISTED AS NOT BEING ELIGIBLE FOR HOT. >> SPECIFICALLY WHAT I WOULD SAY IS THAT THE FALL FESTIVAL IS ELIGIBLE FOR IT TAX AND WE SPECIFICALLY SET IT UP THAT WAY BECAUSE IT'S OVER MULTIPLE DAYS. IF INDEPENDENCE FIX WAS MORE THAN ONE DAY, WE COULD USE HOT TAXES ON IT. THAT'S THE DIFFERENCE. IS THAT FALL FESTIVAL IS CONTEMPLATED OVER MULTIPLE DAYS, WHICH MAKES IT ELIGIBLE FOR THE HOT TAXES. >> WE CAN HAVE MULTIPLE INDEPENDENCE FEST ACTIVITIES. > >THANK YOU FOR ANSWERING THAT I APPRECIATE IT. >> ANYTHING ELSE UNFUNDED? >> UNFUNDED? >> UNFUNDED. >>I HAD A QUESTION ABOUT ONE OF THE NON DISCRETIONARY. CHECK. I'M NOT TRYING TO SURPRISE YOU HERE, BUT THIS IS THERE'S INCREASED FUNDING FOR NEW PARK PROPERTY AND IT TALKS ABOUT TWO NEW PARKS AND IT JUST DIDN'T SAY WHICH PARKS THEY WERE. I WAS CURIOUS IF YOU COULD PROVIDE THAT DETAIL. >> I KNOW PETER'S COLONY PARK MEMORIAL PARK. THAT'S TO HELP WITH ALL THE MAINTENANCE, MOWING, ELECTRICITY, UTILITIES, COSTS, ALL THAT FOR THAT PARK. THEN THE OTHER ONE, I'M TRYING TO REMEMBER WHICH ONE THAT WAS, I SAID 2? >> TWO NEW PARKS. >> YES. IT'S THE RIVERWALK PROPERTY THAT WE GOT. WE HAVE TO MOW THAT 3.5 ACRES, SO THERE'S A COST ASSOCIATED WITH THAT. >> THANK YOU. THAT'S THE DETAIL I WAS LOOKING FOR. APPRECIATE IT. I DIDN'T HAVE ANYTHING ELSE. >> I'M GOOD. >> THERE AREN'T VERY MANY DECISION PACKAGES TO. >> NO, IT'S HARD BECAUSE THE FORMAT OF THE BUDGET, THE WRITTEN ONE THAT I USUALLY HAVE 7,000 STICKY NOTES ON, IT'S DIFFERENT THIS YEAR AND THEN WE DIDN'T REALLY HAVE THE NITTY GRITTY, SO I COULDN'T DO ALL MY STICKY NOTES. I GUESS I SAVED ON STICKY NOTES. >> YES, AS WE ALLUDED, BECAUSE OF THE CHALLENGES OF THE SCARCE RESOURCES WE HAD TO DEAL WITH THIS YEAR, [01:05:05] QUITE A BIT GOT LEFT ON THE CUTTING ROOM FLOOR. THAT IS NOT TO SAY THAT THE NEED IS NOT THERE. SEVERAL OF THESE, WE WILL HAVE TO FIGURE OUT A WAY TO HOW DO WE ADDRESS THAT SERVICE? HOW DO WE DO THIS MOVING FORWARD? BY NO MEANS, IS STAFF LOOKING AT THIS AND GOING, THESE ARE JUST WISHES, THESE ARE NICE TO HAVE. SEVERAL OF THEM, YES, WE CAN OPERATE, WE CAN DELIVER SERVICES. WE WILL CONTINUE TO BE AS EFFICIENT AS WE POSSIBLY CAN. BUT AGAIN, THAT DOES NOT MEAN THAT IN THE NEXT YEAR, NEXT TWO YEARS, THAT THESE ITEMS, YOU WON'T BE SEEING THEM AGAIN AND WE WILL BE HAVING CONVERSATIONS OVER HOW DO WE FUND THEM. THIS LIST IS BY DEPARTMENT. YOU CAN SEE POLICE, WE HAVE ABOUT 1.2 MILLION THAT THEY HAVE REQUESTED THAT AT THIS POINT, BASED ON OUR UNDERSTANDING OF YOUR POLICY DIRECTIVES AND WHERE JAMES FELT COMFORTABLE PUTTING THE PROPOSED BUDGET, WE DO NOT HAVE RECOMMENDED FOR FUNDING. SOME OF OUR LISTS, I WAS ABLE TO GET WITH THE DEPARTMENTS, AND WE GOT INTO THAT LAST MINUTE TIMING OF THINGS THAT I DO HAVE A PRETTY GOOD FEELING ON THEIR PRIORITY ORDER. OTHERWISE, THEY ARE ALSO HERE TO ASK QUESTIONS. >> ABOUT THE UNFUNDED LIST? >> ON THE UNFUNDED. THIS IS POLICE'S LIST. THIS IS IN PRIORITY ORDER, GENERALLY SPEAKING, AT LEAST THE TOP FIVE OR SIX ITEMS. BUT MOTORCYCLE OFFICERS, WHICH INCLUDES THE ENTIRE OUTFIT, PLUS TWO FTE, RECRUITING AND PERSONNEL, WITH VEHICLE, SOFTWARE, ET CETERA. AND SO HAPPY I CAN GO THROUGH EVERY ONE. WE CAN JUST ASK QUESTIONS AS YOU HAVE THEM ON THE ONES THAT WE UNFORTUNATELY WEREN'T ABLE TO RECOMMEND. WHAT WAS. >> I WAS JUST INTERESTED IN HEARING ABOUT THE MOTORCYCLE OFFICERS AND THE IMPORTANCE. >> BACK ON THAT. CAN WE GET THE MOTORCYCLES INSTEAD OF SOME OF THE CAPITAL REPLACEMENT VEHICLE REPLACEMENTS, BUT TAKE CURRENT OFFICERS AND ASSIGN THEM TO THAT. >> WE COULD WHAT WE WERE HOPING IS WE HAVE FEWER TRAFFIC OFFICERS THAN WE DID 25 YEARS AGO. IN 25 YEARS AGO, WE HAD EIGHT MOTORCYCLES. OVER THE YEARS, THROUGH ATTRITION AND HAVING TO MEET OTHER NEEDS LIKE IN PATROL, THEY'VE REDUCED THE TRAFFIC SECTION. IDEALLY, WE WOULD HAVE FTES ADDED WITH IT. WE CAN ADD JUST BUY MOTORCYCLES AND USE CURRENT PERSONNEL. IT WILL STILL BE AN IMPROVEMENT AND WON'T BE AS MUCH OF AN IMPROVEMENT. BUT MOTORCYCLE OFFICERS ARE JUST MUCH MORE AGILE AND ABLE TO DO TRAFFIC. >> BESIDES CUTTING THE COST ON THAT, HOW DOES THAT HELP SAFETY WISE? WHAT'S THE IMPACT? >> WE CAN DO MORE ENFORCEMENT. WE CAN BE IN MORE PLACES, MAKING MORE TRAFFIC STOPS, CONTACTING MORE SPEEDERS AND RED LIGHT RUNNERS, ESPECIALLY BECAUSE IT'S JUST SO MUCH EASIER TO WORK THOSE VIOLATIONS ON A MOTORCYCLE. WHEN YOU CAN JUST POP THE CURB AND SIT THERE AT THE INTERSECTION, YOU CAN GO IN ANY DIRECTION INSTANTLY. >> THAT'S WAY DOWN ON THE LIST THOUGH. YOU HAVE THAT PRETTY FAR DOWN ON THE LIST. >> MOTORCYCLES? >> YEAH. >> IF YOU'RE TALKING ABOUT HOW IT'S PRESENTED ON THE DIGITAL BUDGET BOOK, THAT IS NOT A PRIORITY ORDER. THE POWERPOINT DOES HAVE POLICES RANKING OF THEIR PERSONAL REQUESTS, BUT IT IS NOT RANKED OVERALL BETWEEN ALL THE DEPARTMENT. IT'S JUST A STRAIGHT LIST BY DEPARTMENT ORDER. >> BUT THIS IS PRIORITY. >> THIS ONE FOR PD IS PRIORITY. I SAID, I DON'T HAVE THAT FOR EVERY DEPARTMENT, BUT PD IS. YES. >> CHIEF WANTS TO MOVE FORWARD WITH A COUPLE OF MOTORCYCLE VEHICLES AND THEN MAYBE TRANSITION SOME, PLEASE CAN WE DO THAT UNDER THE CURRENT BUDGET? DO WE NEED TO PUT SOMETHING IN THE BUDGET TO FACILITATE THAT? >> LET ME CONFIRM IF DO WE WANT TO ADD DOLLARS OR. >> YOU'RE LOOKING AT ME AND I'M LOOKING BACK AT YOU. >> I'M LOOKING AT JOHN. >> I WOULD THINK IT WOULD BE IN LIEU OF A REPLACEMENT VEHICLE OR SOMETHING TO THAT. >> NO. WE DON'T HAVE TO ADD ANYTHING IF IT'S IS A SEPARATE FUND, AND TWO POLICE MOTORCYCLES FULLY OUTFITTED COMPARED TO A TAHOE FULLY OUTFITTED IT IS CLOSE ENOUGH. >> I THINK WE CAN DO IT A COUPLE OF TIMES, BUT THEN WE START GETTING WHEN IT RAINS THERE GOING TO BE THE MOTORCYCLE. IT SNOWS WHEN IT'S 110 TO BE ON IT. WE CAN'T TAKE ALL OUR EXTRA CARS AWAY FROM. >> NO, I UNDERSTAND. BUT WE DID GET AN E MAIL JUST A WEEK AGO FROM A RESIDENT IN NORTH SHORE SAYING, CAN YOU PLEASE BRING OUT SOMEONE ON A MOTORCYCLE TO DO SOMETHING ABOUT ALL THE DANGEROUS DRIVING HAPPENING IN OUR NEIGHBORHOOD? IT'S A PROGRAM THAT I'D LIKE TO SEE. I KNOW YOU'RE INTERESTED IN IT. I'M INTERESTED IN AND I'D LIKE TO SEE IT GO FORWARD. >> ME TOO. >> WHILE WE GET THE SALES TAX UP SO THAT WE CAN FUND THE TWO FTES. >> YES. WHAT WOULD HAPPEN IS WE WOULD SWAP ONE OF [01:10:01] THE CURRENT PATROL VEHICLES BEING PROPOSED IN FOR TWO MOTORCYCLES. >> CHIEF'S DISCRETION, IN MY OPINION. >> WE'LL MAKE ASSIGNMENTS AS WE NEED TO, SO WE HAVE EVERYTHING WHERE IT'S SUPPOSED TO BE. ANY OTHER QUESTIONS ON THE POLICE? >> THAT'S THE MAIN THING. >> BEFORE WE LEAVE THE ITEM, I JUST WANT TO VERIFY, ARE WE RECEIVING DIRECTION TO EXPLORE THAT TO BRING TWO MOTORCYCLES IN LIEU OF THE TAHOE WITHOUT THE PERSONNEL? >> ARE YOU ALL GOOD WITH THAT? REST OF THE COUNCIL. >> I'M GOOD WITH THAT. >> YES. INVESTIGATING WHAT THAT WOULD MEAN, YES. >> WHAT WE WOULD DO IS WE WOULD BRING THAT FORWARD AND WHAT I JUST WANT TO MAKE SURE AND I WAS CHECKING WITH JOHN ON THAT IS JUST I WANT TO CONFER WITH THE CHIEF JUST TO MAKE SURE FOR THE REASONS HE JUST STATED, I DON'T WANT TO TRY TO MAKE THE SWITCH OF THOSE AND IT PUTS US IN AN OPERATIONAL BOND SO WE CAN VET THAT AND JUST MAKE SURE THAT IF WE DO MOVE FORWARD HOW WE'RE GOING TO COVER IN THOSE SCENARIOS THAT THE CHIEF LAID OUT. >> JUST TO REITERATE WITH DISCRETION OF THE CHIEF. >> UNDERSTOOD. ANY OTHER QUESTIONS ON THE POLICE FUNDED ITEMS? FIRE, THIS ONE IS NOT A PRIORITY ORDER. THIS IS JUST A GENERAL LIST, BUT THEY DID HAVE A REQUEST FOR EMERGENCY MEDICAL SPECIALIST, A VEHICLE, TRAINING, AND THEN AN AMBULANCE ASSIGNMENT PAY. ANY QUESTIONS FOR CHIEF HENLEY BEFORE WE MOVE ON TO OTHER DEPARTMENTS? >> DURING CAPITOL, I'LL HAVE A FEW QUESTIONS. THAT'S IN THAT SECTION. >> YES. SO 425 IN UNFUNDED REQUESTS FOR FIRE. PUBLIC WORKS, THIS IS THE GENERAL FUND SIDE/SALES TAX, BUT IT'S THE STREETS FUNCTION. THEY HAD SOME VARIOUS PIECES OF EQUIPMENT, A WORK TRUCK, A TRAILER, FLAT BUD SIGN CUTTER. THEN IF YOU REMEMBER LAST YEAR, THEY HAD REQUESTED TWO CREWS, FOR TOTAL, WE HAD MOVED FORWARD WITH TWO. THEY ARE BACK THIS YEAR ASKING FOR THAT OTHER HALF THAT WE WEREN'T UNABLE TO FUND LAST YEAR, AND THEN A SIGNAL SYSTEMS OPERATOR FOR ONE FTE. AGAIN, NOT PRIORITY ORDER, JUST A LIST. >> I THINK THESE OF ALL THE UNFUNDED ITEMS, THE STREETS ONES WERE THE ONES THAT SEEMED THE MOST WORTHY TO ME. IF THE SALES TAX COMES IN A LITTLE BIT AHEAD LIKE IT DID THIS PAST YEAR, IS THERE A CHANCE FOR US TO DO A BUDGET AMENDMENT AND PULL SOME OF THESE THINGS IN? >> ABSOLUTELY. YES. >> BECAUSE WE'RE HAVING A BACKUP ON ORDERS, BECAUSE WE DON'T HAVE THESE THINGS, IS THAT CORRECT, WHAT I WAS READING? >>MATT, COME IN. I HAVE ANOTHER QUESTION FOR YOU. >> OH, MATT'S HIDING BACK. I'LL LET MATT ANSWER. >> AS BRIAN COMES UP AND HE CAN SPECIFICALLY ANSWER THAT. TYPICALLY, WHERE WE HAVE THE MOST LAG TIME ON EQUIPMENT IS FIRE EQUIPMENT, AND THOSE LAG TIMES ARE ALMOST TWO YEARS OUT PLUS, AND SO BRIAN CAN SPEAK MORE SPECIFICALLY, BUT WHERE YOU'RE GOING TO SEE THE MOST IS USUALLY WHEN IT COMES TO FIRE EQUIPMENT, HAVING THE MOST LEAD TIME IN ORDER TO GET IT. >> SPECIFICALLY, I GUESS. >> NO, I WAS JUST WONDERING THE REQUEST THAT YOU HAVE. IS THIS BECAUSE I THOUGHT I WAS READING THAT THERE'S A LOT OF BACKUP ORDERS THAT HAVE TO BE DONE IN THE COMMUNITY BECAUSE WE DON'T HAVE THESE TYPE OF ITEMS. >> SPECIFIC TO MAYBE THE SIGN CUTTER, I GUESS THAT MAKES THE PROCESS A LITTLE MORE EFFICIENT SO YOU CAN CREATE THE SIGNS. ISN'T THERE A LANE STRIPING? IS IT A TRAILER OR SOMETHING? >> A BITAMINE TRAILER? >> THAT'S WHAT THAT IS. >> THE ONE THAT HELPS WITH THE LANE. >> THAT WOULD BASICALLY ALLOW US TO NOT RELY ON OUTSIDE CONTRACTORS AS MUCH? >> THE LONGER WHITE STRIPES THAT YOU SEE, TYPICALLY, THOSE WILL STILL BE OUT TO CONTRACT. WHAT THIS ONE DOES IS HELPS US GET OUT OF THE ROAD FASTER WHEN WE PUT THE REFLECTIVE BUTTONS DOWN. RIGHT NOW IT'S A HAND HELD PROCESS. THIS ONE IS MUCH FASTER. >> THAT'S GOT SOME UPSIDE. >> WHAT'S THE SIGNAL SYSTEMS OPERATOR? >> WHEN YOU'VE COME DOWN TO THE SERVICE CENTER AND YOU'VE SEEN THE VIDEO ROOM, THE PERSON THAT SITS IN THERE RIGHT NOW IS OUR ONE AND ONLY SYSTEM SIGNAL SYSTEMS OPERATOR. THEY PROGRAM THE EQUIPMENT THAT GOES OUT TO THE FIELD. THEY DO THE INVENTORY FOR THE SIGNALS, THEY DO TRAFFIC COUNTS FOR ME. THEY DO A LOT OF THE INVENTORY AND THEN PUSHING THINGS OUT. >> AS WELL AS MONITORING LIVE THE TRAFFIC SYSTEM. RIGHT NOW IT'S ONE PERSON. SO THE SYSTEM IS MONITORED, 40 HOURS A WEEK. HAVING THAT SECOND OPERATOR, YOU WOULD BE ABLE TO MONITOR IT A MUCH LONGER TIME. IF THINGS HAPPEN IF THERE'S ACCIDENTS AT INTERSECTIONS, THOSE THINGS CAN BE ADDRESSED IN REAL TIME IF SOMEBODY IS THERE OPERATING IN THE SYSTEM. NOW, WE'VE GOT CODY SMITH SITTING RIGHT BEHIND YOU, AND HE HAD SOME QUESTIONS ABOUT SIDEWALKS. I KNOW WE HAVE SOME FUNDING IN THE BUDGET FOR SIDEWALKS. MATT, YOU HAVE AGENDA ITEM EVERY YEAR TO TALK ABOUT SIDEWALK PRIORITIES. [01:15:03] WE ALSO JUST DID A BIG PARKS AND TRAILS MASTER PLAN. WE IDENTIFIED SOME OF THE TRAILS. I THINK THE ONES THAT HE MENTIONED ARE ACTUALLY ON THAT AS HIGH PRIORITY ITEMS. CAN YOU TALK ABOUT THE BUDGET FOR SIDEWALKS AND HOW SOME OF THAT GETS SPENT IN THE NEXT YEAR. >> I'LL GIVE THEM MY CARD BEFORE YOU LEAVE SO MAKE SURE YOU CAN REACH OUT DIRECTLY TO ME, AND WE'LL TALK THROUGH THAT AND HOW TO GET SOME MORE INFORMATION ON IT. BUT THERE'S MULTIPLE DIFFERENT WAYS THAT THESE PROJECTS CAN HAPPEN. ONE OF THEM IS OUR SIDEWALK GAP PROJECT THOSE ARE IDENTIFIED AND PRIORITIZED TO THE TRANSPORTATION COMMISSION. WE HAVE FUNDING IN OUR CIP THAT HELPS US FULFILL THESE GAPS. THEN ALSO, WE HAVE, AS YOU MENTIONED, THERE WAS A BOND PACKAGE THAT PASSED FOR SOME PARKS PROJECTS AND TRAILS ALONG SOME OF THE CORRIDORS THAT WAS ACTUALLY REFERENCED EARLIER. I'LL GIVE HIM MY CARD AND THEN HE CAN REACH OUT DIRECTLY AND WE'LL GO THROUGH AND SHOW HIM WHAT WE'RE DOING AND IF WE CAN HELP HIM OR HE CAN GIVE US SOME MORE INFORMATION, THAT'LL BE GREAT. >> I'LL JUST ADD THAT I BELIEVE AN EIGHTH OF OUR SALES TAX, A QUARTER CENT GOES DIRECTLY TO STREETS AND SIDEWALKS. THAT'S HOW WE FUND THAT PROGRAM WITH SALES TAX? THE SIDEWALK LINK. >> THE GAP IS A GENERAL FUND. >> GENERAL FUND? >> DECISION PACKAGE. >> WELL STILL GOING TO MAKE THE PLUG FOR SHOPPING. >> IS STREETS SOME? >> [INAUDIBLE] STREETS. >> [INAUDIBLE] STREETS. >> IT IS SALES TAX. GOOD. SHOP LOCAL AND PUT MONEY INTO OUR SALES TAX COFFERS THAT WE CAN USE TO FUND THOSE SIDEWALK LINKS. THAT WAS ALL I WANTED TO SAY. >> PERFECT. >> THANKS, MATT. >> PARKS AND RECREATION. WE AGAIN, NOT PRIORITIZE JUST A LIST, ART CENTER MANAGER, CONTRACT COMPLIANCE TECHNICIAN, IRRIGATION CREW, TREE CREW, AND A SENIOR CENTER PROGRAM COORDINATOR. ANY QUESTIONS ON ANY OF THESE ITEMS? >> CHECK. DO YOU MIND MENTIONING BECAUSE IT SAID THAT THE ART CENTER MANAGER WAS NEEDED BEFORE THE ART CENTER COMES ONLINE. WE'RE A COUPLE OF YEARS AWAY, BUT CAN YOU TALK ABOUT WHY WE NEED THAT ROLE FILLED AHEAD OF TIME AND WHEN IT WOULD BE APPROPRIATE TO HAVE THAT PERSON DIRECTING THAT PROJECT. IT'S A PRETTY IMPORTANT PROJECT. >> ABSOLUTELY. YOUR $50 MILLION PROJECT. OUR THOUGHT WAS TO GET SOMEONE THAT'S IN THAT FIELD, HAS THAT EXPERIENCE, THAT KNOWLEDGE, KNOWS THE INS AND OUTS OF THESE CENTERS AND TO HAVE THEM COME IN, PROBABLY IT WOULD HAVE BEEN MID YEAR, IT WOULDN'T BE THIS FULL AMOUNT THAT IT SHOWS IN THERE. WE PUT THAT AT THE MIDPOINT OF THE SALARY RANGE IS HOW WE DID BUDGET IT FOR THAT ONE. BUT WE WOULD WANT THAT PERSON TO COME IN DURING THE DESIGN BECAUSE THAT IS REALLY AN IMPORTANT TIME BECAUSE ONCE YOU ALREADY GOT YOUR DESIGN AND IF THEY JUST COME IN WHEN WE START CONSTRUCTION, SOME THINGS MAY NOT BE ABLE TO CHANGE OR THEY MIGHT GO, I WOULD HAVE BEEN HERE TO TELL YOU THIS OR THAT. THAT'S WHAT OUR THINKING WAS TO TRY TO GET THEM DURING THAT PROCESS. >> CAN YOU FIND ANOTHER JILL OUT THERE? >> YES, DEFINITELY. WE'VE GOT ONE IN MIND IF WE CAN STEAL AWAY. >> THIS SEEMS LIKE A PRETTY IMPORTANT ROLE. WE'RE GOING TO WANT TO TRY TO FIND A PLACE TO GET THAT DONE. >> MAYBE NOT IN THIS BUDGET, BUT CERTAINLY AS SOON AS POSSIBLE. >> THANK YOU. >> CHUCK KNOWING THAT IT'S NOT GOING TO BE IN THIS BUDGET, AND WE'LL BE PROCEEDING WITH THE DESIGN PHASE PRETTY QUICKLY. WE NEED TO HAVE SOME IDEAS ON PROGRAMMING, SO WE KNOW HOW TO DESIGN THE BUILDING TO MEET THE PROGRAMMING GOALS. >> THAT TOO. >> WHAT'S A PLAN FOR HOW TO DO THAT? >> ONE THING THAT WE COULD LOOK AT IF WE CAN'T DO THIS IS MAYBE WE CAN CONTRACT SOMEONE THAT HAS THAT EXPERTISE. I WAS GOING TO SEE DOES THE DESIGNER HAVE THAT EXPERTISE WHEN WE HAD THE CACRE MODEL? THEY WERE VERY ADAPT. >> A LOT OF FOLKS THAT WE INTERVIEWED IN THE ONE THAT WE'RE LOOKING TO GO WITH, THEY CERTAINLY HAVE A LOT OF EXPERIENCE IN THIS AREA. THEY USE SUBS THAT ARE HAVE EXPERIENCED IN CERTAIN AREAS OF THE DIFFERENT THINGS THAT YOU WOULD SEE IN A PERFORMING ARTS CENTER. >> DID YOU ALSO HAVE PLANS TO HAVE COMMUNITY INPUT, MAYBE A BOARD OR COMMISSION LIKE? >> THERE'S DEFINITELY GOING TO BE SOME COMMUNITY INPUT INVOLVED IN THIS PROCESS MOSTLY AT THE BEGINNING. >> YOU KNOW THE TIMING FOR THAT ABOUT ESTIMATE LIKE 12 MONTHS AWAY? >> I THINK WE'RE NEGOTIATING RIGHT NOW WITH THE ARCHITECT AND HOPEFULLY THAT'LL BE COMING TO YOU GUYS SOON FOR APPROVAL. I THINK IT'S VERY CLOSE, BRIAN, WHAT DO YOU THINK? HOW FAR OFF ARE WE? >> THE NEXT STEP WOULD BE THE DESIGN APPROVAL, THAT WOULD COME FORWARD AND THEN IN THERE WILL BE SCOPE OF SERVICES. SO THAT IF YOU LOOK THROUGH THAT WHEN THAT AGENDA ITEM COMES, THAT WE'LL PROVIDE SOME INFORMATION ABOUT THOSE STEPS. THEN ANY QUESTIONS THAT YOU HAVE WOULD GO TO CHUCK OR BRIAN AND THEY COULD ANSWER ON PROCESS OR SPECIFIC QUESTIONS. >> I THINK YOU'LL BE SEEING THAT PRETTY SOON. >> I THINK BASED ON SOME OTHER TRS DISCUSSIONS, THERE MAY BE AN OPPORTUNITY TO FUND PERSONNEL NEEDED WITHIN TRS PROJECTS FROM TRS FUNDS. IS THAT A POSSIBILITY FOR THIS 187,000 POSITION POSSIBLY? >> YOU'RE GOING TO HAVE TO LOOK AT. >> MAYBE MARY OUR CONSULTANT FROM P3 CAN HELP US, [01:20:02] BUT THAT MIGHT BE A NICE OPPORTUNITY TO YOUR POINT AND GET THAT GOING A LITTLE BIT FASTER WITHOUT. >> THAT'S A GREAT IDEA, IF THAT'S POSSIBLE. MAYBE A DECISION PACKAGE FOR SOME MICROPHONES. >> WE'RE WORKING ON THAT ACTUALLY. WE'RE GOING TO GET THAT TAKEN CARE OF HERE IN THE NEXT COUPLE OF MONTHS. WE'RE GOING TO REPLACE EVERYTHING IN HERE. OVERALL, TO SPEAK TO YOUR POINT, DEPUTY MAYOR PRO TEM, LET'S JUST SAY THAT IT WAS A STANDARD BUDGET YEAR. WE HAD THE FLEXIBILITY. IF WE BROUGHT THIS PERSON ON, THEY WOULD NOT START ON OCTOBER 1. IT'D BE SOMETHING THAT WE BRING ON TOWARDS THE END OF THE FISCAL YEAR. FROM A TIMING ASPECT, I'M JUST GOING TO GO AHEAD AND FORETELL IF WE FIND OUT THAT WE CAN'T NECESSARILY LEVERAGE THE TRS AND SPEED UP THE PROCESS, THIS WILL DEFINITELY BE A NEXT YEAR'S BUDGET. WE TRY TO FIND A WAY TO FUND IT, AND WE WOULD BRING THAT INDIVIDUAL ON LIKE RIGHT AWAY. BECAUSE OF THE TIMING, IF WE'RE TARGETING A SPRING OF 28 OPENING, WE NEED TO MAKE SURE THAT INDIVIDUALS ON BOARD SOON ENOUGH TO BE ABLE TO PROVIDE THAT CRITICAL INPUT THAT'S ASSOCIATED WITH THAT. WE MEET WEEKLY WITH P3 WHO HELPS US ADMINISTRATE OUR TRS, WE'LL HAVE THAT CONVERSATION TO JUST SEE HOW WE UTILIZE THOSE FUNDS AND IF WE CAN LEVERAGE THEM TO MOVE FORWARD. IF THAT'S SOMETHING THAT YOU DESIRE, WE CAN HAVE REGULAR CONVERSATIONS AND SEE IF THERE ARE SOME OPPORTUNITIES DURING THE COURSE OF THE FISCAL YEAR THAT WE COULD BRING THIS INDIVIDUAL ON, MAYBE TOWARDS THE END AND KEEP THAT TIME FRAME ON IT. THAT'S WHAT I WAS GOING TO SAY, THIS IS ONE THAT'S GOING TO SHOW UP NEXT YEAR AND WE GOT TO FIND A WAY TO FUND. >> MAYBE THIS IS MORE FOR COUNCIL, BUT ON THE PROGRAM COORDINATOR FOR THE SENIOR CENTER, I'M HOPING THAT AS PART OF OUR RATE STUDY, IF THE SENIOR CENTER NEEDS MORE ACTIVITIES, THEN HOPEFULLY THE RATES CAN BE MODIFIED TO JUST BRING THAT HIGHER LEVEL OF SERVICE IF THAT'S WHAT NEEDS IT. I'M HOPING THAT DURING THAT RATE STUDY, WE CAN FIGURE OUT IF THERE'S A WAY TO MAKE THAT HAPPEN TOO VIA A LITTLE BIT OF A MODIFICATION TO THOSE FEES. >> I WILL ALSO NOTE THAT THE NUMBER WE HAD FOR THE ART CENTER MANAGER AND THE ONLINE BOOK IS ACTUALLY A LITTLE TOO HIGH. IT'S NOT EVEN QUITE AS MUCH AS WAS THERE. THERE WAS SOME BENEFITS THAT WERE OVERESTIMATED IN THAT NUMBER. >> LIBRARY, 173,000. AGAIN, THIS IS JUST A LIST. THIS IS NOT A PRIORITY ORDER. BUT IF WE HAVE QUESTIONS HERE, I KNOW RACHEL IS HERE AND CAN HELP ANSWER ANYTHING YOU MIGHT HAVE. >> I DON'T HAVE ANY QUESTIONS ON THIS SIDE, BUT ON THE REVENUE SIDE, THERE MIGHT BE SOME OPPORTUNITIES WE CAN DISCUSS LATER ON. >> YES. >> YES, REVENUE WE WILL COME. ANYTHING WE DO NOW, WE WOULDN'T HAVE A WAY TO REALLY DO A GOOD ESTIMATE FOR BUDGET. WE WOULD RECOMMEND HOLDING THAT CONVERSATION AS WE DO OUR DEEPER DIVE LOOK INTO EVERYTHING, SO IT CAN BE INCORPORATED IN THE 26 BUDGET. >> WE'VE GOT A WORK SESSION FOR THAT. LIBRARY SPECIFICALLY. >> YES. LIBRARY IS A PUBLIC BASING WILL BE ONE OF THE WORK SESSION ITEMS. >> THEN WE HAVE OUR SUPPORT DEPARTMENTS. YOU'LL NOTICE WE'RE NOT REALLY CALLING THESE OUT INDIVIDUALLY BY DEPARTMENTS BECAUSE THE REALITY IS THESE ARE ALL A FUNCTION OF SUPPORTING THE PUBLIC FACING DEPARTMENTS. AS THEY GROW, THERE'S OTHER ADMINISTRATIVE NEEDS IN THE BACK END THAT WOULD GROW AS WELL. YOU CAN SEE THAT'S WHERE WE'RE COMING FROM HERE. TOWN MANAGER HAD REQUESTED SOME INNOVATION GRANTS, SO WE COULD LOOK FOR PROCESS IMPROVEMENT OPPORTUNITIES, STRATEGIC SERVICES MANAGER, FINANCIAL SERVICES HAD THREE DIFFERENT PERSONNEL THAT THEY'RE REQUESTING. PLUS AN OFFICE REMODEL THAT WOULD BE NECESSARY IF THE PAYROLL SUPERVISOR AND THE PURCHASING BUYER WERE APPROVED. THEN WE MOVE ON TO ADMINISTRATIVE SERVICES. AS A REMINDER, THIS INCLUDES HR FUNCTION, IT INCLUDES IT FUNCTION, INCLUDES FACILITIES. THESE ARE THINGS, AGAIN, NOT IN PRIORITY ORDER, JUST A LIST, BUT THEY ARE THINGS AS ALL THESE REQUESTS ARE, THAT THEY'RE NOT GOING TO GO AWAY JUST BECAUSE WE COULDN'T FUND THEM THIS YEAR, THOSE WILL BE THINGS WE'LL BE WORKING THROUGH. THEN COMMUNICATIONS. THIS IS HER PRIORITY ORDER. AN ASSISTANT DIRECTOR AS OUR FIRST, A 311 SYSTEM THAT WOULD WORK WITH OUR FRONT DESK TEAM, AND OUR CUSTOMER SERVICE TEAM, AND THEN SOME FUNDING FOR ADDITIONAL CONFERENCES. ANY QUESTIONS ON ANY OF THESE REQUESTS? >> THEN WE MOVE INTO BACK TO PUBLIC WORKS, BUT THE UTILITY OPERATION SIDE. EVEN THAT SIDE OF THE FENCE THIS YEAR HAS VERY LITTLE BEING RECOMMENDED IN THE PROPOSED BUDGET. AGAIN, THEY HAD SOME ADDITIONAL REQUESTS FOR AN ADDITIONAL INSPECTOR, SOME ADDITIONAL TRUCKS, MAINTENANCE WORKERS, PLANT OPERATORS. THEN IN THE STORMWATER FUND, DRAINAGE STUDY, DRAINAGE CREW, SOME OF THAT, WE DO HAVE THE 200,000 FOR CROSS TIMBERS INCLUDED. IN THE NUMBERS THAT ARE IN THE PROPOSED BUDGET. [01:25:02] WE WILL BE RECOMMENDING WE HAD NOT UPDATED THE STORMWATER REVENUE AS THE TIME WE WERE PUTTING THE BUDGET TOGETHER, BUT WE STILL HAD DISCUSSIONS TO BE HELD ON WHAT YOUR DIRECTION WAS GOING TO BE ON THE FEES. WE WOULD BE RECOMMENDING THAT WE UPDATE THAT NUMBER IN THE BUDGET BEFORE WE GO TO ADOPTION. >> LET'S DRILL DOWN ON THAT SINCE THAT'S A HOT ITEM. THE DRAINAGE STUDYING CREW DIDN'T MAKE THE BUDGET, BUT SINCE THEN WE HAVE ADJUSTED THE STORMWATER RATES OR WE WILL BE ADJUSTING THE STORMWATER RATES. IS THERE A WAY CAN WE PUT IN A DECISION PACKAGE THAT SAYS THE NEW REVENUES THAT WE'RE GENERATING WILL BE USED SOLELY FOR DRAINAGE ANALYSIS AND IMPROVEMENTS IN THE CROSS TIMBERS. >> I THINK THIS IS A UNIQUE CHALLENGE WITH THIS, AND I'VE HAD THIS CONVERSATION WHEN WE MET WITH THE STAKEHOLDERS, MAYBE ABOUT A MONTH OR SO AGO, IS THAT IT'S ALMOST A GAME OF SEMANTICS WHEN YOU TALK ABOUT STUDY. YOU HAVE STUDY THE NOUN, WHICH IS THIS THING VERSUS STUDY THE VERB AND I WAS TALKING WITH TIFFANY ABOUT THIS, THAT WHAT THE $0.50 ON THE RATE DOES IS GENERATED ABOUT $250,000 MORE REVENUE. WHAT WE CAN USE AS FOR A MYRIAD OF APPROACHES THAT WE CAN TAKE. WE MIGHT GO IN THERE AND START WORKING TO JUST FIGURE OUT WE NEED TO PUT THOSE ACTIVITIES TOWARDS ENHANCED MAINTENANCE AND BRINGING IN CONTRACTORS, CLEAR OUT CULVERTS, AND THINGS OF THAT NATURE. ALSO, WHAT WE CAN DO IS THAT WE CAN STUDY TO FIGURE OUT HOW WE APPROACH IT. I WANT TO DRAW A DISTINCTION BETWEEN THE DRAINAGE STUDY IN THERE AND THE CREW. THEY ALMOST GO HAND IN HAND IN THE SENSE THAT THAT STUDY CONTEMPLATED CREATING THE WORK THAT THE CREW WOULD DO. WE DON'T DO THE CREW, WE DON'T NECESSARILY NEED TO DO THAT STUDY. THAT DOESN'T MEAN WE'RE NOT GOING TO STUDY THE AREA IF THAT MAKES SENSE. IN ESSENCE, WHEN DALE DOES HIS PRESENTATION, YOU'LL SEE IN THAT CIP WHERE THOSE FUNDS ARE GOING. YES, WHEN WE GO DOWN IN THAT CROSS TIMBERS AREA AND THOSE THREE DRAINAGE BASINS, WE WILL DO SOME ANALYSIS, BUT WHAT WE ULTIMATELY WANT TO DO IS WHAT'S THE MAXIMUM IMPACT OF DOLLARS THAT WE CAN PUT OUT THERE? HAVE ONE DRAINAGE RIGHT AWAY CREW, THEY'LL BE OUT THERE, BUT AGAIN, WE MIGHT ULTIMATELY DETERMINE THAT WE CAN USE THESE FUNDS TO SUPPLEMENT THE ACTUAL WORK OUT THERE, OR IT CAN GO TO SOME LEVEL OF ANALYSIS THAT HELPS A SET OF FUTURE WORK THAT'S OUT THERE. REALLY, WE WANT TO GET OUT THERE AND PUT OUR EYES ON IT AND FIGURE OUT WHAT THE NEXT STEP IS. THAT WAS A LONG WINDED WAY INTO SAYING, YES, IT'S A "STUDY", BUT IT'S NOT NECESSARILY THE SAME THING THAT YOU SAW IN THE ORIGINAL DECISION. >> I THINK I APPRECIATE THAT THE STUDY IN THE TERMS OF GENERATING CAPITAL PROJECTS IS NOT WHAT WE'RE AFTER. WE ALREADY HAVE OUR CAPITAL PROJECTS IDENTIFIED, BUT WHAT WE NEED IS SOME ANALYSIS OF WHERE THE LABOR SHOULD GO THAT MAYBE THE RESIDENTS CAN GET AHOLD OF AND SAY, I CAN SEE THAT THIS AREA NEEDS THE ATTENTION, THEY'RE GOING TO GET THE ATTENTION RATHER THAN JUST HAPHAZARD OR JUST HAVE NO EXPECTATIONS. >> EXACTLY. THAT'S PART OF THE WORK THAT BLAKE'S BEEN DOING IN THE WORK THAT HE'S MAKING WITH THOSE GROUPS IS HE TAKES NOTES, HE'S NOT TAINTING THINGS AND HE HAS SOME INFORMATION CAPTURED. THAT'S GOING TO INFORM WHAT WE'RE DOING A LITTLE BIT, AND THEN WE CAN USE THOSE FUNDS TO SUPPLEMENT THE WORK THAT HE'S DOING. AGAIN. REALLY IT'S JUST THE FLEXIBILITY OF JUST WHAT IS THE MAXIMUM IMPACT THAT WE WANT TO DO? BECAUSE THE LAST THING WE WANT TO DO IS STUDY AND WE DON'T HAVE AN OPERATIONAL NEEDS TO FOLLOW UP WITH IT. THAT'S WHAT MY BIGGEST CONCERN IS. A STUDY MEANS NOTHING IF YOU CAN'T FOLLOW UP AND EXECUTE AND ACTUALLY DO ANYTHING. I THINK IT'S REALLY JUST A MATTER OF THEM JUST GETTING TOGETHER, TAKING BLAKE'S DATA, SEE WHAT ADDITIONAL DATA WE NEED, BUT WHAT WE WANT TO ACCOMPLISH, AND I THINK WHAT THE FOLKS ARE ASKING FOR IS SOMETHING HAPPENING, SOMETHING MOVING OUT THERE. >> THAT'S REALLY WHAT OUR FOCUS IS GOING TO BE. >> I'LL JUST SAY THIS FOR COUNSEL, I WOULD MAKE ME FEEL BETTER IF THERE WAS AN ARTIFACT IN THIS BUDGET THAT BASICALLY MADE SURE THAT THESE FUNDS WERE BEING ALLOCATED FOR THAT PURPOSE, NOT JUST A LINE ITEM THAT COULD ESSENTIALLY BE MAYBE USED SOMEWHERE ELSE, BUT IF THEY HAD IT HASN'T HAVE TO BE A DECISION PACKAGE, BUT SOMETHING THAT SAYS, THESE FUNDS ARE ALLOCATED FOR THIS PURPOSE, AND THEN WE CAN GO BACK WHEN WE DO THE AUDIT AND SAY, THESE FUNDS WERE USED FOR THIS PURPOSE AND THE RESIDENTS WHO ARE CONCERNED ABOUT DRAINAGE KNOW THAT THAT WAS SPENT THE WAY THEY [OVERLAPPING] >> WE'VE DONE THAT, MAYBE I JUST NEED TO HAVE BELL DOES HIS PRESENTATION, YOU WILL SEE THAT WHEN HE GIVES HIS INTERVIEW. >> THANK YOU. I'M GOING TO NOT, I'M JUST MAKING SURE. >> THAT IS ALL THE NET NEEDS LIST. IT DID OCCUR TO ME, COUNSEL MCITI. I DON'T BELIEVE THE CAPITOL CIP INVOLVES ANY OF THE VEHICLES. IF YOU DID HAVE QUESTIONS ABOUT THE FIRE VEHICLES, I WOULD RECOMMEND WE PROBABLY TOUCH ON THOSE RIGHT THIS MINUTE BECAUSE DALE WOULD NOT HAVE THOSE SINCE THOSE ARE BERTH. IF YOU'D LIKE ME I HAVE CHIEF FINLEY COME UP. >> YEAH, CHIEF FINLEY, COME ON UP, PLEASE. >> PUT YOU ON THE SPOT. CIP. >> CHIEF, TELL ME ABOUT THIS BOAT. >> WELL, IN FULL DISCLOSURE, I CAN'T EVEN SWIM. FOR ME, I'M NOT A BOAT GUY. THAT'S SWIFT WATER AND STATIC WATER HAVE NOT BEEN A DISCIPLINE THAT I EXCELLED IN. WE'LL LEAVE IT AT THAT. TO GET THE BOAT THROUGH ME WAS A MONUMENTAL CHORE. [01:30:02] FOR FOUR YEARS, I'VE SAID, NO, WE'RE GOING TO LET IT RIDE, SO TO SPEAK. WE DID SOME THINGS WHEN I FIRST GOT HERE AND WE TOOK IT OUT OF THE WATER AND WE PUT IT IN THE STATION, SO THE MAINTENANCE ON IT SLOWED WAY DOWN. HOWEVER, THE BIGGEST IMPACT OF THAT BOAT WAS FOR GRAPEVINE LAST YEAR LAST OCTOBER. THEY HAD A HUGE MARINA FIRE. THEIR BOAT WAS DOWN, OUR BOAT PUT IT OUT, IS ABOUT $1 MILLION IN DAMAGE. WE DO PROTECT 13 MILES OF SHORELINE. IN THAT, YOU GOT POINT NOBLE. YOU HAVE ME DEER PATH AND SOME OTHERS ALONG THERE AND A HUGE INTERFACE, WIND URBAN INTERFACE THAT WE NEED ACCESS TO. WE ALSO HAVE A TWO MARINAS WITH ONE OF THE MARINAS HOUSING PROBABLY OH GOODNESS, 3400 SLIPS. I WOULD ESTIMATE THE VALUE OF THE BOATS IN THAT MARINA AT PROBABLY 50-$60 MILLION WORTH OF BOATS THAT WE WOULD PROTECT, AS WELL AS THE HOMES AGAIN ALONG THOSE SHORELINES AND THAT INTERFACE. WE ALSO USE THAT BOAT QUITE A BIT FOR UNFORTUNATELY, WATER RESCUES, WATER CRAFT FIRES ON THE LAKE THEMSELVES, AND THEN DROWNING AND NEAR DROWNING INCIDENTS, WHICH WE'VE HAD TO USE THAT MORE THAN I WOULD LIKE TO ADMIT TO BECAUSE THAT IS A COMMON THING OUT THERE. PROBLEM WITH OUR BOAT NOW IS MULTIFACETED. ONE, IT'S WAY TOO SMALL TO DO BODY AND PULL A BODY FROM THE LAKE AND TO PERFORM ANY TYPE OF LIFESAVING INTERVENTIONS BECAUSE THERE'S NOT ENOUGH SPACE TO DO THAT. NUMBER 2, AGAIN, TOO SMALL, THE FIRE PUMP ON THAT BOAT, YOU WOULD WANT WHEN WE TAKE WATER AND WE USE THE WATER FROM THE LAKE, PUMP IT OUT, PUSH IT OUT AT A GOOD PSI.WELL, WITH THIS BOAT, IT WASN'T REALLY IN DESIGN FOR THAT. THE NAZLE REACTION, HERE'S THE FIRE. THE NAZLE REACTION JUST PUSHES THE BOAT. WE NEED A BOAT THAT REALLY CAN HANDLE THE MULTI MILLION DOLLAR HOMES THAT ARE OUT THERE AND SOMETHING BIG ENOUGH AND HAVE A PLATFORM WHERE WE CAN PULL A PERSON UP AND ACTIVE RESUSCITATE IF WE NEED TO OR DO WHATEVER WE NEED TO DO. THEY REALLY OVER FOUR YEARS OF LOOKING AT THAT THING, WE PUMP SOME MONEY INTO IT, WE TRY TO STRING ALONG. IT HAS BEEN UP SINCE I'VE BEEN HERE, AND I THINK IT'S 20, 22-YEARS-OLD OR SOMETHING LIKE THAT. IT'S TIME, AND SO THAT'S WHY IT MADE IT TO THE VR. THE POLICE BOAT, THAT DOESN'T ALLOW THEM TO PULL UP SOME. >> IT DOESN'T HAVE A PUMP ON IT. THAT'S MAINLY FOR ENFORCEMENT. WE'LL DON'T DO THAT. >> NICE STUFF. >> ANY OTHER QUESTIONS? THANK YOU. >> WE WILL MOVE ON. JUST WANTED TO SHOW THIS IS THE OUTCOME ON THE COMMUNITY SUPPORT FOR THIS YEAR. WE DID HAVE A COUPLE OF NEW APPLICATIONS FROM ORGANIZATIONS. AS A NOTE, MUCH LIKE WE DID LAST YEAR, SOME OF OUR ARTS ORGANIZATIONS HAD REQUESTED ADDITIONAL FUNDING. STAFF IS RECOMMENDING MUCH LIKE WE DID LAST YEAR THAT SOME OF THOSE INCREASES WE WOULD RECOMMEND APPROVING AS LONG AS THE ORGANIZATION IS WILLING TO DO SOME EXTRA PARTNERSHIP WITH THE LIBRARY OR WITH EVENTS SO THAT THAT MONEY COMES WITH SOME ADDITIONAL VALUE TO OUR TOWN RESIDENTS. YOU CAN SEE HERE, YOU'VE GOT IN THE CULTURAL ARTS ORGANIZATIONS, EVERYONE THAT ASKED FOR MONEY. WE'VE GIVEN THE LEAST SOME AT A MINIMUM, WHAT WE HAD GIVEN THEM THE PRIOR YEAR. AS A REMINDER THAT THE PROCESS HAD CHANGED AND WE DO HAVE A STAFF COMMITTEE THAT LOOKS AT THESE REQUESTS AND WHY THEIR RATIONALE FOR ANY INCREASED REQUESTS, AND THEN THIS IS OUR RECOMMENDED FUNDING. THIS AMOUNT IS INCLUDED IN THE PROPOSED BUDGET. THIS IS HERE. IF YOU HAVE ANY QUESTIONS, YOU'RE HAPPY TO ANSWER THEM. I WILL MAKE THE SIDE NOTE ON WINNING THE FIGHT. IT IS NOT THAT THEY'RE NOT GETTING MONEY. IT'S THAT AT THE TIME THAT THE APPLICATIONS WERE DUE, THE STAKEHOLDER GROUP WAS STILL MEETING THE TASK FORCE, AND SO WE'RE EXPECTING SOMETHING WILL COME FROM THAT, BUT THE FUNDING SOURCE WOULD NOT BE GENERAL FUND AT THAT POINT. IT WOULD MOST LIKELY BE FROM OUR OPIOID FUNDS. THAT'S WHY THEY'RE NOT ON THE LIST. IT'S NOT THAT THEY HAVE BEEN FORGOTTEN OR THEY'RE NOT BEING ADDRESSED, BUT WE WANTED TO GET THAT TASK FORCE TIME TO VET OUT WHAT THAT WOULD LOOK LIKE. >> LAST YEAR, WE INCREASED THE SPAN BUDGET SIGNIFICANTLY. THEY CAME BACK, THEY DID THAT ADJUSTMENT AFTERWARDS. [01:35:04] >> IT WAS A TWO PART, IF YOU RECALL. PART OF IT WAS JUST STRAIGHT ON THEIR TRANSPORTATION PIECE, AND THEN THE PART THAT WAS INCLUDED WITH THIS SIDE WAS THAT EXTRA FUNDING FOR VETERANS. THEY DID NOT RE REQUEST IT. IT WAS NOT PART OF THEIR APPLICATION, AND IT HASN'T BEEN FORGIVE ME IF I SPEAK MISSPEAKS BECAUSE I'M REACHING INTO THE RECESSES B MEMORY. THEY'VE NOT REQUESTED A LOT OF REIMBURSEMENTS ON IT, EITHER. IT HASN'T BEEN UTILIZED SOLELY ON THAT VETERAN SIDE? THEIR STANDARD ONE THEY'VE BEEN USING, BUT THAT WAS ALL THAT THEY HAD INCLUDED IN THEIR REQUEST. THE OTHER PIECE OF THAT INCREASE WAS THROUGH THE PARK SIDE WITH THEIR CONTRACTUAL FUNDING. >> WHY DID WE DROP 12,000-10,000 WITH THEM? >> BECAUSE THEY DIDN'T ASK FOR THAT VETERANS FUNDING, I THINK. >> THAT IS THE DIFFERENCE. >> YES. ANY OTHER QUESTIONS ON THIS? >> DID PETTY PLACE ASK FOR MORE PETTY PLACE PLACE? THEY UPED THERE SIGNIFICANTLY. >> WE THEM 10,000, YES. >> DOES THAT REFLECT AN INCREASE IN THE NUMBER OF FLOWER MOUND RESIDENTS USING THAT SERVICE? >> YES. THOSE PETTY PLACE THE CHILDREN'S ADVOCACY CENTER. THOSE WERE ALL BASED MORE ON PER CAPITAL NUMBERS, AND EVEN AT THE INCREASED AMOUNT THEY WERE REQUESTING, IT STILL IS VASTLY UNDER THE SERVICES BEING PROVIDED TO FLOWER MOUND RESIDENTS. WE ACCEPTED THOSE INCREASES. THEY HAD VERY GOOD DATA JUSTIFICATION FOR THEM, AND SO STAFF RECOMMENDED SUPPORTING THAT. >> IF SOMEONE WANTED TO LOOK AT THE NITTY-GRITTY AND ALL THE DETAILS ON THE WEBSITE, OUR WEBSITE. >> I DON'T KNOW THAT WE HAVE THOSE ON THERE, OBVIOUSLY THROUGH AN OPEN RECORDS REQUEST. I CAN LOOK AND SEE WHAT OUR OTHER OPTIONS CAN BE IN THE FUTURE. >> I'VE HAD SOME RESIDENTS JUST ASK ME TO ENSURE THAT THIS REFLECTS THE FACT THAT FLOWER MOUND RESIDENTS ARE BENEFITING FROM THE SERVICES. THERE'S NOT A STRAIGHT FORMULA, RATHER IT'S DISCRETIONARY. >> LIKE I SAID, THE ONES THAT ARE MORE CONTRACTUAL FOR SERVICE BASE. I'M THE CHILDREN'S ADVOCACY, I KNOW FOR SURE, TRYING TO LOOK AT THE NUMBERS. JP, IF YOU WANT TO JUMP IN AND HELP ME TOO. I KNOW PETTY PLACE. >> I CAN JUMP IN, FOR EXAMPLE, ON THE CHILDREN'S ADVOCACY CENTER. WHAT THEY DO IS THEY BASICALLY WILL BILL YOU A YEAR IN ARREARS. IT'S BASED ON, I BELIEVE THAT ONE IS FRACTION OR A CERTAIN PERCENTAGE OF ACTUAL SERVICES GIVEN TO FLOWER MOUND RESIDENTS. I WOULD SAY IS ON THIS LIST, AS MAY REFERENCED EARLIER, THEY PROVIDE US WITH SOME OF THE BEST INFORMATION. PETTY PLACE IS ANOTHER ONE THAT PROVIDES REALLY GOOD INFORMATION. YOU CAN IMAGINE FOR SOME OF THESE GROUPS, IT MAY BE HARD TO TRACK SOME OF THESE THINGS DEPENDING ON WHAT THEIR SERVICE IS. FOR EXAMPLE, SOME OF OUR CULTURAL ARTS ORGANIZATIONS, THEY WILL PUT ON THAT APPLICATION, HOW MANY FLOWER MOUND RESIDENTS ARE ATTENDING, BUT THAT'S ONLY IF THEY HAVE THE ABILITY TO UNDERSTAND IF IT IS THOSE FLOWER MOUND RESIDENTS. WE REQUIRE THAT. AGAIN, I THINK MEG REITERATED IT. WHEN THE CULTURAL ARTS ORGANIZATIONS, FOR EXAMPLE, ARE ASKING FOR MORE, THAT'S WHEN WE'RE ASKING TO DO MORE THINGS IN FLOWER MOUND. THEY'LL BE DIFFERENT ON EACH GROUP, BUT IF YOU WANTED SOME MORE INFORMATION, IF YOU LET US KNOW THE GROUP, WE CAN GET THAT TO YOU. >> I THINK IT'S NICE JUST FOR TRANSPARENCY AND GOVERNMENT FOR FOLKS TO BE ABLE TO SEE WHERE SOME OF THE TAX DOLLARS ARE GOING TO SUPPORT RESIDENTS, OF COURSE. THEN THE OTHER QUESTION I HAD TOO WAS THE TRUE UP, BECAUSE THIS IS THE BUDGETED AMOUNT. I WOULDN'T EXPECT THAT IT WOULD BE EXACTLY THIS AMOUNT. WHERE COULD WE FIND THAT ON THE WEBSITE? >> THIS ONE ACTUALLY IT GENERALLY IS THE AMOUNT. ALL OF THESE ARE GENERALLY REIMBURSEMENT BASED, SO THERE'S SOME THERE, BUT THERE'S VERY FEW THAT DON'T THROUGH THIS PROCESS THE FULL AMOUNT OF THE GRANT THAT DIDN'T USE THE VETERANS FUNDS THAT WERE EARMARKED. >> SOME OF THAT MAY NOT, BUT MOST OFTEN, IT'S PRETTY MUCH THE FULL AMOUNT. THANK YOU, BUT OTHERWISE, IT IS A SEPARATE LINE WITHIN THE BUDGET, BUT YOU'D HAVE TO DIG INTO THE FINANCIALS. THERE'S NOT READILY AVAILABLE. WE CAN LOOK AND SEE HOW WE MIGHT BETTER PROVIDE THAT INFORMATION IN THE FUTURE. THANK YOU. >> ENABLING MOBILITY, I SAW THAT'S A NEW ONE. THAT WAS A NEW REQUEST. THEY REQUESTED 10,000, BUT WE'RE ONLY GIVING THEM 3,000 HEALTH SERVICES ALSO IS NEW. THEY GOT 9,000 THAT THEY'RE REQUESTING, AND THEY STILL GOT THEIR 9,000. IS THERE ANY WAY TO BRING THE ENABLING MOBILITY? I'M FAMILIAR WITH THEM. THEY HAVE PHYSICAL DISABILITIES AND THEY USE OUR TRAILS. YES A LOT. [01:40:01] IS THERE ANY FLEXIBILITY ON THAT? >> WELL, IT'S AT COUNCIL DISCRETION, BUT IT WOULD INCREASE THE EXPENDITURE NUMBER THAT'S IN THE GENERAL FUND. NOW, AS YOU RECALL FROM EARLIER. THERE IS SOME PLAY IN THOSE NUMBERS IF YOU DID WANT TO INCREASE IT. I WILL SAY THE STAFF'S FEELING WAS WE LOVED THE REQUEST FROM ENABLING MOVEMENT. WE HAVE A LOT OF EXCITEMENT OVER WHERE THAT COMES IN THE FUTURE. WE BASED ON WHAT THEIR REQUEST WAS, WE WANTED MORE DATA TO APPROVE HOW IT WAS BENEFITING FLOWER MOUND RESIDENTS AND SO IT STARTED AS A, LET'S GIVE THIS INITIAL INVESTMENT AND THEN LET'S SEE WHAT THEY BRING US BACK NEXT YEAR. >> THAT MAKES SENSE. HOW DO YOU ALL FEEL ABOUT THAT? I THINK THAT'S REASONABLE. THAT'S THE FIRST TIME REQUEST. I'M FAMILIAR WITH THEM. >> WE WERE PULLING UP THEIR WEBSITE. WE LOVED TO SEE WHAT THEY WERE PULLING TOGETHER. WE'RE VERY EXCITED OVER WHAT THAT BRINGS TO FLOWER MOUND. >> THEY'LL USE OUR PARKS AND, OUR TRAILS WITH THEIR SPECIAL MOBILITY DEVICES. >> YES. IT ABSOLUTELY WAS ONE THAT WE WERE EXCITED TO SEE, BUT WE WANTED TO BE JUDICIOUS WITH HOW WE WERE DOLING OUT AND WE FIGURED WE WOULD START. THEN SEE WHAT THEY BRING US NEXT YEAR AND WHERE THEY'VE GOT A LITTLE BIT MORE TIME BECAUSE IT'S ALSO BECAUSE THEY'RE SO NEW SO WE WANTED TO GIVE THEM SOME TIME TO GET THE DATA TO JUSTIFY SOME OF THOSE HIGHER REQUEST AMOUNTS. >> MOVING ON TO THE FUN NITTY GRITTY STANDARD PROCEDURAL THINGS. AS A REMINDER, THIS IS THE 2025 PROPOSED TAX RATE. THIS IS WHAT IS RECOMMENDED FOR NUMBERS IN THE BUDGET. NOW, AS YOU RECALL, YOUR TAX RATE AND MAXIMUM NOT TO EXCEED NOTICE IS THE CURRENT YEAR TAX RATE OF 0.387278. THAT IS WHAT IS BEING PUBLISHED IN THE NOTICES. BUT THE BUDGET WAS BUILT ON 0.387277 PER $100 VALUATION. AGAIN, FOR THOSE WHO MAY NOT BE AWARE, FOR OUR LISTENING AUDIENCE, FLOWER MOUND DOES NOT CONTROL WHAT YOUR APPRAISAL VALUES ARE, WHAT YOUR PROPERTY VALUE IS. THAT IS DONE THROUGH THE RESPECTIVE APPRAISAL DISTRICT, WHETHER YOU LIVE IN DENTON COUNTY OR TARRANT COUNTY. THINGS UNDER COUNCIL CONTROL THIS YEAR, YOU DID VOTE TO INCREASE THE HOMESTEAD EXEMPTION FROM 15-20%, THAT IS THE STATE MAXIMUM ALLOWED. WE ARE GIVING AS LARGE OF A BREAK AS WE CAN GIVE TO OUR RESIDENTS HOMESTEADS WITH THIS BUDGET. OUR OVER 65 DISABLED EXEMPTION REMAINS AT 1:50, AND SO THAT'S OFF THE TOP OF THEIR VALUE AND THEN THEIR HOMESTEAD AS WELL. THEN THE TWO SPLITS IN THE TAX RATE, THE M&O WITH MAINTENANCE AND OPERATIONS. THAT'S WHAT'S FUNDING OUR OPERATION. THAT'S OUR GENERAL FUND AMOUNT, AND THEN INTEREST AND SINKING TAX RATE, THAT IS WHAT IS COMMITTED TO PAYING FOR THE ANNUAL DEBT SERVICE FOR NEXT YEAR. TEXAS LEGISLATURE DOES REQUIRE US TO DO A CALCULATION EACH YEAR CALLED THE NO NEW REVENUE TAX RATE, AND THAT IS A VERY LONG COMPLICATED CALCULATION THAT BASICALLY IS TRYING TO MAKE AN ORANGES OR APPLES TO APPLES COMPARISON OF THE TAX RATE. WHAT WOULD BE THE TAX RATE REQUIRED TO RAISE THE SAME AMOUNT OF REVENUE ON PROPERTIES THAT WERE IN THE TAX YEAR IN THE PRIOR YEAR AND THE CURRENT YEAR? THIS YEAR, THE NO NEW REVENUE TAX RATE IS 0.372129 PER $100 VALUATION. SV2 DOES ALLOW US TO CAPTURE UP TO 3.5% INCREASE IN OUR PROPERTY TAX REVENUE FOR OPERATIONS. SHOULD WE HAVE ADOPTED A MAXIMUM TAX RATE OVER THIS RATE OF THE 0.388067 PER $100, WE WOULD HAVE TO HAVE AN ELECTION. BUT AS COUNSEL SET THE MAXIMUM TAX RATE, THEY WOULD CONSIDER BELOW THIS AMOUNT. IT IS JUST THE STANDARD PUBLIC HEARING AND ADOPTION STEPS THAT WE WILL CONDUCT ON SEPTEMBER 15. LOOKING HERE, YOU CAN SEE OUT OF OUR PROPERTY TAX REVENUE, HOW IT BREAKS DOWN. THE GOLD BAR AT THE TOP IS THE INS, THE DEBT REVENUE. THAT'S PAYING AGAIN EACH YEAR'S ANNUAL DEBT DEBT SERVICE PAYMENTS. THEN THE BLUE BELOW IT IS OUR MAINTENANCE AND OPERATIONS AND OUR SRS PROPERTY TAX REVENUE THERE. THIS IS JUST TO HELP EDUCATE AND HELP PEOPLE UNDERSTAND. THIS IS NOT A MEDIAN OR AN AVERAGE TAXABLE VALUE. THIS IS AN ACTUAL EXAMPLE PROPERTY. WE LOOKED BACK STARTING IN 2017 AT WHAT ITS ASSESSED VALUATION WAS. THEN WE'VE WATCHED HOW THAT PROPERTY HAS CHANGED ON THEIR ASSESSED VALUATION YEAR OVER YEAR. OUR EXAMPLE PROPERTY THIS YEAR IS VALUED AT $465,000. AT THE PROPOSED TAX RATE, THE TAX BILL WOULD BE JUST OVER $1,800. [01:45:02] WHEN YOU FACTOR IN THE HOMESTEAD, THAT DOES DROP THE BILL BY $360. IF THAT PARTICULAR PROPERTY OWNER IS ALSO OVER 65 OR OTHERWISE DISABLED, THEIR PROPERTY BILL WOULD ACTUALLY BE $825 LESS. FOR THAT PROPERTY, BASED ON THE ANNUAL COST OF 1,441, THAT COMES DOWN TO A MONTHLY COST OF 120. I AM SURE IF YOU ADD IT UP, ANY TELEVISION, STREAMING SERVICES, WHATNOT, YOU MAY BE SPENDING MORE THAN THAT A MONTH. I CAN PROMISE AT THE DAILY RATE. I DON'T KNOW THAT STARBUCKS, WE USED TO BE ABLE TO SAY IT'S A STARBUCKS COFFEE, AND I THINK THIS IS EVEN LESS NOW THAN STARBUCKS. YOU CAN GO TO HTO AND GET A TEA FOR THE COST OF ALL OF THE TOWN SERVICES. THIS IS LOOKING AT GENERAL FUND ALLOCATIONS PLUS THE DEBT SERVICE BECAUSE THAT'S WHAT'S FUNDED WITH THE TAX RATE. WE HAVE A DEAL. UNDER $3 A MONTH FOR THE LIBRARY, AS MANY BOOKS AS YOU CAN CHECK OUT, OR AS MANY TIMES AS YOU CAN GO VISIT TO GO STUDY IN A STUDY ROOM OR SPEND SOME TIME ON THE COMPUTER OR GO VISIT OUR AMAZING CREATION LAB. POLICE AND FIRE, ABOUT HALF OF THAT ALLOCATION JUST UNDER HALF. THE PEACE OF MIND TO KNOW THAT WHEN YOU CALL 911, THEY'RE GOING TO BE AVAILABLE TO RESPOND. THEN ALL OF THE OTHER SERVICES THAT IT TAKES TO KEEP THE TOWN RUNNING. FINANCE AND MUNICIPAL COURT, PUBLIC WORKS, OR ADMINISTRATIVE SUPPORT, SO HR, IT, ALL OF THESE PIECES THAT GO INTO KEEPING TOWN OPERATIONS GOING. SO 395 A DAY AND ALL OF THOSE MUNICIPAL SERVICES AVAILABLE TO YOU. BEFORE I TURN IT OVER TO CAPITAL AND CIP, JUST AS A REMINDER THE NEXT STEPS, WE WILL HAVE THE PUBLIC HEARING ON THE BUDGET. WE WILL HAVE THE PUBLIC HEARING ON THE TAX RATE, AND THEN WE WILL HAVE ALL OF OUR VARIOUS BUDGET ADOPTIONS AND THE TAX RATE ADOPTION THAT WILL ALL BE AT THE MEETING ON SEPTEMBER 15. ANY OTHER QUESTIONS OVER THE OPERATING BUDGET, ANYTHING THAT WE'VE PRESENTED FAR THIS EVENING? THAT IS IT FOR ME. ACTUALLY, I THINK ARE WE TURNING OVER CHRIS NEXT? CAP. THEN I WILL TURN IT OVER TO BRIAN DALE, THEIR TEAM TO GO OVER CIP. >> GOOD EVENING, COUNSEL. I'LL GIVE YOU AN OVERVIEW OF THE PROPOSED PROJECTS AND FUNDING FOR THIS UPCOMING FISCAL YEAR. IF YOU HAVE ANY QUESTIONS BY ALL MEANS, LET ME KNOW I'M GOING THROUGH THE PRESENTATION. JUMPING RIGHT IN, GETTING INTO STREET RECONSTRUCTION. WE HAVE FIVE PROJECTS SLATED FOR NEXT YEAR. THE ROADWAY PORTIONS WILL BE FUNDED THROUGH THE STREET RECONSTRUCTION BONDS. IF YOU LOOK HERE, YOU'LL SEE THAT WE HAVE A SMALLER AMOUNT FOR PROSPECT DRIVE PANEL REPLACEMENT. THAT PARTICULAR PROJECT, WE EVALUATED IT. IT'S A CARRYOVER FROM LAST YEAR. WE DECIDED THAT IT DOES NEED A FULL RECONSTRUCTION, SO WE ADDED A LITTLE BIT OF MONEY TO IT. THAT'S WHAT WE'LL BE DOING WITH THAT. NOW, LOOKING AT THE WATER AND SEWER, EVERY SINGLE ONE OF THESE PROJECTS HAS EITHER WATER OR SEWER OR BOTH, SO WE'LL ALWAYS LOOK TO CAPTURE ANY DEFICIENCIES AND CORRECT THEM WHEN WE HAVE THESE RECONSTRUCTION PROJECTS. WE WANT TO GIVE YOU AN ENTIRE PICTURE OF OUR APPROACH HERE. ANY WATER AND SEWER THAT WE DO AS PART OF THESE PROJECTS WILL BE FUNDED THROUGH UTILITY DEBT. >> I DON'T MEAN TO PUT YOU ON THE SPOT, BUT I HAVE TO GO TO AUSTIN TOMORROW AND WHAT HAS HAPPENED ON THAT LAST SLIDE. WHAT WOULD THIS HAVE COST US FIVE YEARS AGO? >> FIVE YEARS AGO, I MEAN, WATER MATERIALS HAVE REALLY INCREASED. THERE WAS A POINT IN TIME WHERE THEY WERE INCREASING LIKE 5% A MONTH. I WOULD SAY FOR WATER, EASILY, 50% MORE THAN MAYBE WHAT IT COST BACK THEN, WASTEWATER, PROBABLY CLOSE, BUT A LITTLE LESS STREET RECONSTRUCTION, PROBABLY LESS OF AN INCREASE THAN THE OTHER TWO. >> FIFTY PERCENT OR? >> FIFTY PERCENT WATER. JUST SHOOTING FROM THE HIP HERE. 50% WATER, 40% WASTEWATER AND MAYBE LIKE 20%, 25% STREET RECON. >> I HAD A DEVELOPER TELL ME THE OTHER DAY THAT [01:50:02] THE MATERIALS COSTS HAVE DOUBLED IN THE LAST FIVE YEARS. >> WELL, IT'S HARD TO KEEP UP. YOU KNOW, IT'S A MOVING TARGET. >> THANK YOU. I APPRECIATE IT. >> HERE'S A MAP SHOWING WHERE THESE PROJECTS ARE LOCATED AROUND TOWN. AS YOU CAN SEE MARCUS CURT AND PROSPECT DRIVE, THEY'RE ALL CLUSTERED UP TOGETHER, AS YOU CAN SEE ON THE LEFT THERE, ZOOM IN. WE'LL LOOK TO ACCOMPLISH THAT PROJECT JUST AS ONE PROJECT, DO DESIGN AND CONSTRUCTION ALTOGETHER. MOVING ON TO SIGNALS. ALL THESE PROJECTS WILL BE FUNDED THROUGH THE GENERAL CAPITAL PROJECTS FUND. HERE'S A MAP SHOWING WHERE THESE DIFFERENT PROJECTS ARE LOCATED FOR FLOW MOUNT ROAD AT QUELL RUN, WE'LL BE DOING ALL NEW SIGNALS THERE. WE'LL BE DOING A RECONSTRUCTION AT FM 1171 AT LUTHER FOR THOSE SIGNALS, MAKING SOME PEDESTRIAN IMPROVEMENTS AT MCCAMEY CREEK AT OLD SETTLERS, AND THEN ADDING A FLASHING BEACON AT ELEMENTARY DUE TO THE SCHOOL BOUNDARY CHANGES WITH THE CLOSURE OF GARDEN RIDGE ELEMENTARY. WE'LL PUT THE BEACONS THERE AT THE CROSSWALK AT VALE AND FOREST VISTA. I DO HAVE SOME SIGNALS SHOWN HERE ON THE WEST SIDE OF TOWN THAT WILL BE DONE WITH DEVELOPMENTS OR THAT WE ANTICIPATE BE DONE WITH DEVELOPMENTS. ADDING A NEW SIGNAL THERE AT 1171 AND THE FUTURE FIRST RANCH BYPASS ROAD, AND THEN ADDING A FOURTH LEG THERE ON THE EAST SIDE AT 377 AND CANYON FALLS DRIVE. I'LL GET INTO, LIKE I SAID, DEVELOP HERE IN A LITTLE BIT. HERE ARE THE PARKS PROJECTS THAT WE HAVE FOR THIS UPCOMING YEAR. THE FUNDING SOURCES VARY, AS YOU CAN SEE, RECENTLY APPROVED PARK SPAWNS WILL BE USED FOR WHAT YOU SEE ON THAT UPPER HALF THERE. THEN WE'LL USE DEDICATED SALES TAX FOR THE REST FOR TROTTER PARK IMPROVEMENTS. A PORTION OF THAT WILL BE PAID THROUGH PARK DEVELOPMENT FUNDS. >> WE'VE GOT SOME FEEDBACK ON HIDDEN VALLEY PARK THAT IT NEEDS A LITTLE BIT OF ATTENTION. IS THAT INCLUDED IN OUR MAYBE NOT THE NEXT YEAR, BUT IS THAT PART OF OUR PLAN MOVING FORWARD, I DIDN'T SEE IT ON THE LIST? >> SOME OF THE FEEDBACK WE GOT FOR THAT PARK WAS DIDN'T HAVE A PARK SIGN, WHICH WE DID INSTALL ONE AT THE END OF JULY. THAT WAS SOMETHING. WE OVERLOOKED THAT, SO WE WERE ABLE TO GET THAT DONE UTILIZING OUR PARK AMENITY PROJECT FUND THAT WE HAVE THROUGH 4B. WE HAVE SOME MONEY IN THERE TO BE ABLE TO USE FOR THAT. THEY DO HAVE THEIR PARK SIGN IN THERE NOW. I THINK SOMETHING ELSE THAT WAS ASKED FOR MIGHT HAVE BEEN A SMALL GAZEBO OR PAVILION. MY SUGGESTION TO THE NEIGHBORHOOD IS WE'RE GOING TO DO A NEW UPDATE TO OUR PARKS AND RECREATION MASTER PLAN, THAT'S THE BEST TIME TO HEAR FROM THE DIFFERENT NEIGHBORHOODS ABOUT WHAT THEY'D LIKE TO SEE AS FAR AS IMPROVEMENTS GO IN THEIR PARK. THEN WE'LL PUT RECOMMENDATIONS IN THAT MASTER PLAN ONCE IT GETS APPROVED BY YOU GUYS, AND THEN WE'LL BE ABLE TO BUILD THE FIVE YEAR CIP OUT AND THAT COULD BE A FUTURE IMPROVEMENT THAT WE WOULD DO. >> THANK YOU. >> I APPRECIATE >> HERE WE HAVE ANOTHER MAP SHOWING WHERE ALL THE PARKS PROJECTS ARE LOCATED AROUND TOWN. MOVING ON TO WATER PROJECTS. JUST KEEP IN MIND, THIS LIST EXCLUDES RECONSTRUCTION, AND THEN WATER PROJECTS THAT WE WOULD BE DOING WITH DEVELOPMENTS. BUT ALL THESE PROJECTS WOULD BE PAID WITH UTILITY DEBT. AS YOU CAN SEE, THERE ARE SOME PROJECTS LOCATED ON THE WEST SIDE OF TOWN AND SOME OF THOSE ALL OF THOSE ACTUALLY WOULD BE ELIGIBLE. FOR WASTEWATER, WE HAVE A COUPLE WASTEWATER TREATMENT PLANT PROJECTS SCHEDULED FOR THIS YEAR. WE HAVE THE PTA IMPROVEMENT, WHICH WE'LL BE GOING TO CONSTRUCTION, THAT'S ALREADY BEEN DESIGNED OR IN DESIGN, AND THEN WE HAVE TREATMENT PLANT, BLOWER BUILDING NUMBER TWO REHABILITATION, WE'LL START THE DESIGN ON THAT. BOTH THESE PROJECTS WILL BE PAID FOR THROUGH UTILITY DEBT. AT ANOTHER MAP SHOW WE KNOW WHERE THESE PROJECTS ARE AROUND TOWN. WHAT YOU SEE IN THE GREEN THERE IS THE WASTEWATER, THE REST WATER PROJECTS. IF I'M GOING THROUGH THIS TOO QUICK, JUST BY ALL MEANS, LET ME KNOW. STORMWATER. WE HAVE TWO PROJECTS LISTED HERE THIS YEAR, THE FIF STUDIES. [01:55:03] NOW, THIS IS SOME FLOODPLAIN MAPPING, AND THERE IS AN OPPORTUNITY FOR MATCHING GRANT WITH THIS, WE'RE CERTAINLY GOING TO PURSUE THAT. THEN THE CROSS TIMBERS DRAINAGE IMPROVEMENTS PROJECT THAT WAS TALKED ABOUT EARLIER. THEN ON HERE'S JUST A MAP OF THE AREA THAT WE'RE LOOKING AT AS FAR AS HOW WE APPROACH IT. AS JAMES MENTIONED, THE STUDY WAS REALLY GOING TO GO HAND IN HAND WITH THE DRAINAGE CREW. I SPOKE TO BLAKE ABOUT THIS PROJECT IN DETAIL, AND HE CERTAINLY HAS SOME IDEAS AS TO HOW BEST TO ATTACK THE PROBLEMS OUT THERE, STARTING WITH COVERTS AT THE STREET CROSSINGS. BUT ONCE WE GET THE FUNDING, WE'LL DIVE IN DEEPER AND REALLY FIGURE OUT WHAT OUR BEST APPROACH IS. >> THIS IS IN ADDITION TO THE INCASE THE 50 CENT INCREASE IN THE UTILITY RATE. >> THE 50 CENT IS FUNDING. >> THIS IS THE FUND? >> CORRECT. >> CAN YOU JUST SET EXPECTATIONS FOR THE RESIDENTS THAT ARE FOLLOWING THIS? HOW WILL THEY GET MORE INFORMATION WHEN SHOULD THEY SEE SOMETHING HAPPENING? >> ONCE THE NEW FISCAL YEAR KICKS OFF, IT'S CERTAINLY GOING TO BE A PRIORITY FOR US. >> THAT'S OCTOBER 1, IS THAT? >> BLAKE WILL REMAIN THE MAIN POINT OF CONTACT FOR ALL THINGS DRAINAGE IN TOWN. >> THANKS. >> MOVING ON TO FACILITIES PROJECTS. THE FUNDING SOURCES VARY AS SHOWN. THE FIRE STATIONS WILL BE FUNDED THROUGH FACILITY DEBT. FIRE STATION NUMBER 6, SPECIFICALLY IS TIRZ ELIGIBLE PERFORMING ARTS CENTER WILL BE FUNDED THROUGH TIRZ 1, POLICE STATION THROUGH THE PRIME DISTRICT, AND THEN STREET MAINTENANCE DEDICATED SALES TAX FOR A PORTION OF THE SERVICE CENTER IMPROVEMENTS. IF YOU RECALL, THAT WAS ALSO LISTED ON THE WATER PROJECTS. THAT WOULD BE THE MAIN SOURCE OF FUNDING THAT BEING UTILITY DEBT. EVERY YEAR, WE DO HAVE RECURRING PROJECTS. HERE IS THE LIST OF THIS YEARS. IT'S THE SAME EVERY YEAR, PRETTY MUCH WITH THE EXCEPTION OF THE STREET ASSESSMENT STUDY, WHICH IS DONE EVERY FEW YEARS. WE DO HAVE THE SIDEWALK LINKS HERE. THERE WAS A YOUNG GENTLEMAN HERE EARLIER, ASKING ABOUT ADDING NEW SIDEWALKS HERE ALONG 2499, AND SO THAT WOULD BE THE PROJECT THAT WOULD TAKE CARE OF THAT. BUT FUNDING SOURCES VARY AGAIN FOR STREET PROJECTS, WE'D BE LOOKING AT GENERAL CAPITAL PROJECT FUND, STREET RECONSTRUCTION PARKS, USING DEDICATED SALES TAX, AND THEN USING THE UTILITY FUND FOR ALL WATER AND WASTEWATER. AS YOU CAN SEE, THESE ARE ALL CASH FUNDED PROJECTS. NOW MOVING ON TO OUR DEVELOPMENT PROJECTS. OF COURSE, AS YOU KNOW, THESE ARE PARTNERSHIPS THAT WE DO WITH DEVELOPERS WHEN THEY COME INTO TOWN AND BUILD. STARTING WITH BRICKVEW, WE HAVE SOME STREETS AND WATER PROJECTS. MOST OF THESE ARE FUNDED BY THE DEVELOPER UPFRONT, AND THEN THEY'LL BE REIMBURSED WITH TOURS AS TIME GOES ON. THE ONLY EXCEPTIONS BEING DENTON CREEK BOULEVARD AND THE DENTON CREEK WATER REUSE WATER LINES. THOSE PARTICULAR PROJECTS, THEY'RE GOING TO BE DOING THAT WORK ON BEHALF OF THE TOWN. NOW, SPECIFICALLY, THIS IS WORK BEING DONE IN FRONT OF THE FUTURE FIRE STATION NUMBER 6, WHICH IS ADJACENT TO BROOK VIEW. THAT'S WHY THEY'RE GOING TO DO IT BECAUSE THEY'RE ALREADY GOING TO BE THERE DOING THE SAME EXACT WORK. BUT AGAIN, THOSE PROJECTS AS WELL ARE TIRZ ELIGIBLE. ONE THING I WILL NOTE ABOUT THE REUSE WATER LINES, THAT THERE ARE POTENTIAL GRANT OPPORTUNITIES FOR THOSE WATER LINES THAT WILL LOOK TO PURSUE PRIVATE GRANTS AND POTENTIALLY PUBLIC GRANTS AS WELL. >> MOVING ON TO CANYON FALLS. WE HAVE, AGAIN, MORE STREETS AND WATER PROJECTS THAT WILL BE DONE WITH VILLAGE THREE. WE'LL USE INTER LOCAL FUNDS FOR DENTON CREEK BOULEVARD, AND THEN THE REST WE'LL PAY THROUGH STREETS DEBT AND UTILITY DEBT. OF COURSE, WHAT WE CONTRIBUTE TO THESE PROJECTS WOULD BE TIRZ ELIGIBLE. THEN FIRST RANCH. THESE ALL BE BROOKVIEW, FUNDED INITIALLY BY THE DEVELOPER AND THEN REIMBURSE THROUGH TOURS WITH THE EXCEPTION BEING THE $12 MILLION AND INTERCAL FUNDS FOR THE BYPASS ROAD. [02:00:08] HERE'S A MAP SHOWING WHERE THESE DEVELOPMENTS ARE LOCATED ON THE WEST SIDE OF TOWN. HERE IS THE LAST SLIDE, SUMMARY OF COSTS BY CATEGORY. OF COURSE, SOME OF THESE NUMBERS INCLUDE MONEY THAT'S BEING FUNDED BY THE DEVELOPERS THAT ARE WORKING HERE IN TOWN, AND THEN OF COURSE, IT ALSO INCLUDES MONEY THAT THE COUNTY IS GOING TO BE CONTRIBUTING THROUGH INTER LOCAL AGREEMENTS. THAT CONCLUDES THE PRESENTATION, SO IF YOU HAVE ANY MORE QUESTIONS. >> CAN YOU GIVE US A LITTLE BIT OF AN OVERVIEW OF WHAT ARE SOME OF THE ACTIVITIES THAT WE'RE DOING TO EXTEND LIFE OF ROADS, WATER, AND HOW WE'RE TRYING TO BE MORE CRITICAL OF THE PROJECTS THAT WE CHOOSE? >> I GUESS A LOT OF THE STREET MAINTENANCE ACTIVITIES THAT WE'VE TALKED ABOUT WITH THE BOND ELECTION THAT WE HAD RECENTLY ABOUT STREET MAINTENANCE AND UTILIZING HAVING ADDITIONAL DOLLARS TO DO THAT. I DON'T KNOW IF YOU'VE SEEN IT, WE RECENTLY STARTED BEING MORE AGGRESSIVE ON SOME JOINT CEILING PROJECTS, YOU MAY HAVE SEEN THAT AROUND TOWN. I GUESS MORE ASSET MANAGEMENT RELATED, WHICH HELPS EXTEND THE LIFE OF OUR CURRENT FACILITIES. WHEN WE'RE TALKING ABOUT PROJECTS THAT HAVE REACHED A CONDITION THAT MAINTENANCE WON'T HELP THEM. THAT'S WHEN WE START LOOKING AT THEM AS A PRIORITY BASED ON THEIR CONDITION SCORE. WHEN WE GO OUT EVERY TWO OR THREE YEARS AND WE LOOK AT A CONDITION ASSESSMENT OF ALL OF OUR ROADS IN TOWN, THE LOWEST SCORES GENERALLY GET THE PRIORITY OR THE MOST CRITICAL ROADS THAT ARE IN NEED OF RECONSTRUCTION. THAT'S HOW WE CHOOSE THEM, BUT I GUESS YOUR QUESTION SPECIFICALLY TO, HOW DO WE INCREASE THE LIFESPAN OF THEM IS WE'RE DOING INCREASED MAINTENANCE. ALSO SAY THE ASSET ASSET MANAGEMENT ANALYSTS THAT WE'RE LOOKING TO APPROVE THROUGH THIS BUDGET WILL ACTUALLY HELP THAT PROCESS AS WELL AS DIVING IN MORE DEEP INTO THE DETAILS AND THE DATA TO MAKE SURE THAT ALL THE DECISIONS WE'RE MAKING ARE PURELY DATA DRIVEN. LOOKING AT THE RISK AND THE CONDITION FOR ALL THOSE PROJECTS TO HELP US MAKE THOSE DECISIONS AND ENSURE THAT THE MONEY THAT WE'RE SPENDING IS BEING SPENT IN THE PROPER PLACE THAT MAKES THE MOST IMPACT. >> THE ASSET MANAGERS, NOT JUST ROADS, IT'S VEHICLES, IT'S STOP LIGHTS. >> ANYTHING PUBLIC WORKS RELATED, I WOULD SAY IT'S MORE CAPITAL EXPENDITURES THROUGH PUBLIC WORK. YOUR ASSETS, STREETS WATER LINES, SEWER LINES, VALVES, ANYTHING RELATED TO THAT, NOT NECESSARILY, I THINK, VEHICLES. >> PERFECT. THANK YOU. >> LET ME GET IT PULLED BACK UP. I THINK IT OCCIDENTAL. WE WILL TURN IT OVER TO CHRIS SECKERT WITH NUGENT, AND SO HE WILL BE GIVING US AN OVERVIEW ON THE PROPOSED WATER WASTE WATER AND DRAINAGE STUDY. >> THANK YOU VERY MUCH. GOOD EVENING, MAYOR COUNSEL, CHRIS SECKERT WITH NUGENT. PLEASURE TO BE WITH YOU AGAIN THIS EVENING. WE'LL RUN THROUGH THIS QUICKLY, BUT HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE FOR ME THIS EVENING. AS WE TALK THROUGH WATER AND WASTEWATER RATES, I AM RECOMMENDING A 5.25% OVERALL INCREASE IN WATER AND WASTEWATER RATES. THIS IS CONSISTENT WITH WHAT WE DISCUSSED LAST YEAR. AGAIN, NO CHANGES FROM THE SAME RECOMMENDATIONS THAT WE DISCUSSED LAST YEAR. AS WE STRUCTURE THOSE RATES, WHAT WE'RE LOOKING TO DO IS THREE THINGS. WE WANT TO MAKE SURE THAT WE HAVE A SUFFICIENT REVENUE STREAM. AGAIN, THE UTILITY SYSTEM IS A SELF SUPPORTING FUND. WE DO NOT RECEIVE SUPPORT FROM ADVALORM TAX, WE DO NOT RECEIVE SALES TAX, WE RUN IT LIKE A BUSINESS. THIS IS A SELF SUPPORTING FUNDS, SO WE WANT TO BE SUFFICIENT. WE WANT TO MAINTAIN THAT MINIMUM RESERVE BALANCE. THE OTHER ITEM WE WANT TO DO IS MAKE SURE WE'RE MEETING OUR DEBT SERVICE COVERAGE REQUIREMENTS. WE WANT TO MAKE SURE WE CAN MEET OUR PROMISES THAT WE'VE MADE TO BONDHOLDERS. WE WANT TO MAINTAIN A LOW CREDIT RISK, OBVIOUSLY, WE STILL HAVE IMPROVEMENTS THAT WE ARE MAKING AND WE'LL CONTINUE TO MAKE. WE WILL CONTINUE TO RELY ON DEBT AS WE NEED TO BY MAINTAINING THAT LOW CREDIT RISK, WE MAINTAIN A HIGHER CREDIT RATING AND KEEP OUR INTEREST COST LOW LONG TERM. WITH THAT, LOOKING BACK, YOU'VE SEEN THIS CHART BEFORE. THIS IS THE HISTORICAL BILLS HERE IN THE TOWN FROM 2014 ALL THE WAY TO 2025. [02:05:03] IF YOU AVERAGE THIS OUT OVER THE PERIOD, ABOUT 3.18% HAS BEEN THE AVERAGE ANNUAL INCREASE OVER THIS PERIOD. AS WE LOOK AT HOW OUR COST HAS CHANGED. WHAT WE'VE DONE HERE IS WE'VE TAKEN THAT BILL AND WE'VE BROKEN IT INTO FOUR BUCKETS. OPERATIONS AND MAINTENANCE EXPENSE, PERSONNEL EXPENSE, WHOLESALE, AS WELL AS DEBT AND CAPITAL. THE LARGEST COMPONENT OF THE BILL REALLY IS THAT WHOLESALE PIECE AND THE DEBT CAPITAL PIECE. AGAIN, THOSE ARE THE KEY DRIVERS FOR UTILITY EXPENDITURES AND KEY DRIVERS OF RATES ULTIMATELY. AS WE LOOK YEAR OVER YEAR, WE ARE ANTICIPATING ABOUT A 6% OVERALL INCREASE IN EXPENDITURES. THE LARGEST COMPONENT OF THAT IS WHOLESALE. A 36% OF THIS INCREASE COMES FROM YOUR WHOLESALE PROVIDERS. I'VE GOT ANOTHER SLIDE ON THAT HERE IN JUST A SECOND. AGAIN, MORE CHARTS YOU'VE SEEN BEFORE JUST REMINDING YOU WHAT IS THE BREAKDOWN? HOW DO YOUR EXPENDITURES BREAK DOWN OVER THE ENTIRE FUND? ON THE WATER SIDE? AGAIN, WHAT YOU'RE LOOKING AT HERE IS THAT AVERAGE FROM 2014 ALL THE WAY THROUGH 2016? WE'RE AVERAGING ALL THOSE YEARS TOGETHER. WHOLESALE AT THIS POINT IS ACTUALLY A LITTLE HIGHER THAN 59%. SKIRTING CLOSER TO ABOUT 62, 63% ON THE WATER SIDE NOW. OVER TIME, IT'S BEEN ABOUT 60% ON THE WATER SIDE. AGAIN, YOU HAVE YOUR OWN WASTEWATER TREATMENT PLANT. YOU DO ALSO PAY FOR SOME WASTEWATER TREATMENT, SO YOUR WHOLESALE COST ON THE WASTEWATER SIDE IS LOWER AS A PERCENTAGE. BUT THAT'S WHY YOU SEE THE DEBT CAPITAL PIECE HIGHER ON THE WASTEWATER SIDE. ULTIMATELY, AS I SAID, CAPITAL FUNDING. THAT IS A KEY DRIVER OF RATES GOING FORWARD. IT HAS BEEN A KEY DRIVER OF RATES. YOU JUST SAW THE PROJECTS THAT GO INTO THIS, AND YOU SEE, OF COURSE, THE FUNDING ASSOCIATED WITH THAT. WHOLESALE EXPENSES. I MENTIONED THIS EARLIER, WHAT WE'RE SEEING ON THE WATER SIDE IS ABOUT A 4% YEAR OVER YEAR INCREASE IN YOUR WHOLESALE WATER EXPENSE. LIKE I SAID, THAT'S ABOUT 63% OF THE WATER FUND. ON THE WASTEWATER SIDE, IT IS A LARGER OVERALL PERCENT INCREASE, ABOUT 15%. AGAIN, THE DOLLARS ARE SMALLER, THAT REPRESENTS ONLY ABOUT 6% OF THAT FUND RIGHT NOW. BUT WE ARE SEEING, ESPECIALLY FROM TRA RIGHT NOW ACROSS THE BOARD, SOME FAIRLY SIGNIFICANT INCREASES, ALL DRIVEN BY CAPITAL. IF MY MEMORY IS CORRECT, TRAS CAPITAL PLAN IS ABOUT $91,000,000 NEXT YEAR. SO RATHER SIZABLE DOLLAR INCREASES. I DO HAVE TWO SCENARIOS FOR YOU TONIGHT, BUT I DO WANT TO CLARIFY THIS. MY RECOMMENDATION DOES NOT CHANGE FOR 2026. MY RECOMMENDATION GOING INTO NEXT YEAR IS THE SAME 5.25% UNDER SCENARIO ONE AND SCENARIO TWO. BUT WHY DO I HAVE TWO SCENARIOS FOR YOU? AS WE HAVE LOOKED AT THE FUND, WE ARE BEGINNING TO SEE SOME IMBALANCE BETWEEN WATER RATES AND WASTEWATER RATES COMPARED TO COST. WE COME IN, WE PERIODICALLY LOOK AT THIS AND SEE IS WATER PAY FOR WATER, IS WASTEWATER PAY FOR WASTEWATER. WE ARE STARTING TO SEE SOME IMBALANCE THERE, PARTICULARLY AS WE LOOK FORWARD. AS WE PROJECT THOSE EXPENSES OUT INTO THE FUTURE, WE ARE ANTICIPATING WASTEWATER WILL COST MORE THAN WATER, ULTIMATELY, AS WE LOOK AT THAT REVENUE STREAM. OPTION 1, I'VE GIVEN YOU AN OPTION WHERE YOU WOULD MAKE THE SAME INCREASES TO WATER AND WASTEWATER EACH YEAR. OPTION 2 INCREASES THE INCREASES, IF YOU WILL, TO WASTEWATER, AND PULLS DOWN ON THOSE WATER INCREASES A LITTLE BIT. THAT'S THE DIFFERENCE BETWEEN SCENARIO ONE AND SCENARIO TWO. THAT'S FOR THE FUTURE. THAT IS NOT WHAT I'M PROPOSING FOR THIS YEAR. THIS IS ALL BASED ON PROJECTIONS. AGAIN, WE WOULD CONTINUE TO LOOK AT THIS, IF THIS DOES COME TO PASS, AS WE ANTICIPATE, WE'D BE SEEKING DIRECTION FROM YOU ON HOW TO APPROACH THIS. REALLY, TONIGHT, WE'RE JUST LOOKING AT 20:26 AND THAT 5.25%. ALL OF THIS SCENARIO ANALYSIS REALLY IS INFORMING THE FUTURE. WITH THAT, AGAIN, SCENARIO ONE, 5.25%, IS THE PROPOSAL FOR 2026. YOU SEE GOING FORWARD, IF WE MADE THE SAME ADJUSTMENTS TO WATER AND SEWER, 6.7%, HOPEFULLY DROPPING THAT BACK TO 66.45% IN 2030. AGAIN, WE'RE TESTING THIS PLAN AGAINST THOSE THREE METRICS, REVENUE SUFFICIENCY FUND BALANCE, AND DEBT SERVICE COVERAGE. AGAIN, WE PROPOSE THAT WE WOULD CONTINUE TO EVALUATE THIS ANNUALLY, WHILE I'M SHOWING YOU THESE PROJECTIONS, HOPEFULLY WE CAN COME IN BETTER THAN WHAT YOU SEE HERE. BUT ULTIMATELY WHAT MATTERS? WHAT IS THE IMPACT TO CUSTOMERS? RIGHT NOW, THE AVERAGE CUSTOMER IN THE TOWN, 15,000 GALLONS OF WATER, 08,000 GALLONS OF WASTEWATER. AGAIN, 15,000 GALLONS OF WATER IS A SIZABLE AMOUNT OF WATER. [02:10:01] A TYPICAL SINGLE FAMILY HOME WITHIN THE STATE OF TEXAS AND EVEN MORE BROADLY, USES ABOUT 5,000 GALLONS A MONTH. YOU HAVE SOME VERY HIGH WATER USERS IN THE TOWN. AGAIN, PROBABLY NOT A SURPRISE TO YOU, BUT YOU DO HAVE SOME HIGH USERS HERE. NOW, THAT 15,000 GALLONS OF WATER, 08,000 GALLONS OF WASTEWATER, THAT TOTAL BILLS 174.43. WITH OUR PROPOSED INCREASE OF 5.25%, THAT WOULD TAKE THAT BILL TO 18353. THAT IS A $9.10 CENT MONTHLY INCREASE FOR THAT LEVEL OF USE. IF YOU USE LESS, THE BILL WOULD BE LESS. IF YOU USE MORE, THE BILL WOULD BE MORE. BREAKING THAT DOWN FOR YOU JUST A LITTLE BIT HERE. I WENT AND LOOKED AT THIS ON A PER UNIT BASIS. THAT'S A $0.41 PER THOUSAND GALLON INCREASE ON WATER, A 37 CENT PER THOUSAND GALLON INCREASE ON WASTEWATER. THE BEVERAGE MARKETING CORPORATION CURRENTLY PRICES A GALLON OF BOTTLED WATER AT $1.44. THIS IS A $0.41 PER THOUSAND GALLON INCREASE FOR WATER, JUST A DATA POINT THERE. STILL A VERY ECONOMICAL SERVICE EVEN WITH THIS INCREASE. SCENARIO TWO, IF WE LOOKED AT SEPARATE INCREASES BETWEEN WATER AND WASTEWATER, OBVIOUSLY, YOU SEE THE WATER INCREASE COMING DOWN THERE, 6.05%, THAT WASTEWATER INCREASE BEING A LITTLE HIGHER, 8% THERE FOR THOSE THREE YEARS 27 THROUGH 29. AGAIN, THIS WILL BE RE EVALUATED, BUT BASED ON OUR PROJECTIONS RIGHT NOW, WE ARE ANTICIPATING THAT WE NEED TO GET BACK IN BALANCE BETWEEN THESE TWO SERVICES. AGAIN, SAME IMPACT HERE, $9.10 A MONTH GOING INTO 26. YOU SEE THIS ACTUALLY DOES PULL DOWN THAT BILL A LITTLE BIT LONGER TERM, EVEN WITH THOSE HIGHER WASTEWATER INCREASES, AND REALLY THAT'S DRIVEN BY THE FACT THAT WE'RE USING 8,000 GALLONS OF WASTEWATER HERE. I'VE SHOWN YOU THESE CHARTS BEFORE. I'VE SAID THE EXACT SAME THING BEFORE. ANYTIME WE'RE LOOKING AT OUR COMPARISON COMMUNITIES. THIS IS NOT AN APPLES TO APPLES COMPARISON. EVERY COMMUNITY IS DIFFERENT. I WILL ALSO TELL YOU I'VE BEEN WITH CITIES ON THIS LIST OVER THE PAST TWO WEEKS. THEY ARE ALSO LOOKING AT RATE INCREASES. JUST AS YOU EXPERIENCE INCREASES IN YOUR WHOLESALE COST, OTHER COMMUNITIES ARE EXPERIENCING THOSE SAME INCREASES IN WHOLESALE COST. THERE ARE COMMUNITIES ABOVE YOU ON THIS LIST, THEY HAVE ALREADY ANNOUNCED INCREASES. THERE ARE COMMUNITIES BELOW YOU ON THIS LIST THAT HAVE ALREADY ANNOUNCED INCREASES. PLEASE NOTE WHEN I SHOW YOUR PROPOSED BILL, I'M COMPARING YOUR PROPOSED BILL WITH EVERYBODY ELSE'S BILL TODAY. WE COULD GET TO OCTOBER. THIS COULD LOOK BASICALLY THE SAME AT THAT POINT. BUT AGAIN, 174.43 FOR 15,000 GALLONS WATER, 08,000 GALLONS WASTEWATER GOING TO 183.53 WITH THAT 5.25% INCREASE. ANY QUESTIONS I CAN ANSWER FOR YOU AT THIS POINT ON WATER AND WASTEWATER BEFORE WE MOVE TO DRAINAGE? >> I'M JUST TRYING TO DECIDE HOW I'M GOING TO RECONCILE THIS INFORMATION WITH THE IDEA THAT THE LEGISLATURE MIGHT SAY, SORRY, YOU CAN'T SPEND ANY MORE MONEY, YOU'RE DONE. YOU CAN SPEND WHAT YOU SPENT LAST YEAR, BUT INFLATION. I'M LIKE, WELL, THIS IS MORE THAN TYPICAL INFLATION. HOW ARE WE GOING TO PAY FOR THAT IF THEY ACT? >> YOU DON'T. >> WHAT DO WE SAY, SORRY, PEOPLE NO WATER? >> NO. YOU LIKELY WOULD HAVE TO SELL YOUR UTILITY. IF YOU CAN'T PROVIDE THIS SERVICE, AND THERE'S NO WAY THAT YOU CAN PAY FOR IT AND THERE'S NO LEGAL WAY THAT WE CAN DO IT, WE WOULD BE UNDER AN OBLIGATION TO SELL THE UTILITY IF WE CANNOT DO THESE THINGS. IF WE CAN'T PURCHASE WATER, THEN WE CAN'T PROVIDE WATER. IT'S A CHICKEN EGG CONVERSATION BY THAT TIME. >> IF I CAN, WHEN YOU THINK ABOUT UTILITIES, YOU DON'T SET THE SERVICE LEVEL. THE STATE SETS THE SERVICE LEVEL. THE REGULATORY REQUIREMENTS ARE SET BY THE TCEQ. WHEN YOU THINK ABOUT UTILITIES, YOU HAVE MILLIONS OF DOLLARS IN SPENDING. YOU GET INTO A SITUATION WHERE YOU NEED TO SPEND $10 MILLION ON A WASTEWATER PLANT, BUT THERE'S AN EXPENDITURE CAP THAT SAYS YOU CAN'T SPEND THAT. AT THAT POINT TO MEET THE REGULATORY REQUIREMENTS, YOU CAN'T. YOU PHYSICALLY CANNOT DO IT. THE ONLY OTHER OPTION AT THAT POINT, HONESTLY, IS TO DIVEST OF THE UTILITY AND SELL TO A PRIVATE PROVIDER OR ANOTHER PROVIDER THAT DOES NOT HAVE THOSE SAME EXPENDITURE CAPS. >> IT SOUNDS LIKE A SETUP TO ME TO BE BLUNT. NOT YOU. >> I'M NOT GOING TO EDITORIALIZE ABOUT THE LEG. >> I DON'T EXPECT YOU TO. I SAID IT, YOU DIDN'T. [02:15:01] >> JUST TO ADD TO THAT BE A MONOPOLY, WE WOULDN'T HAVE ANY CHOICE OF WHO WOULD GET WATER FROM? >> THAT'S CORRECT. AGAIN, I KNOW WE'RE NOT DISCUSSING SENATE BILL OR HOUSE BILL 73 RIGHT NOW, BUT IT ALSO DOESN'T APPLY TO YOUR WHOLESALE PROVIDERS. THEY ARE NOT SUBJECT TO THE SAME REQUIREMENTS UNDER THAT BILL. YOU COULD BE IN A SITUATION WHERE YOUR WHOLESALE PROVIDER HAS TO MAKE SUBSTANTIAL CAPITAL IMPROVEMENTS. THEY GO UP ON COST. YOU'RE NOW IN A SITUATION WHERE YOU CANNOT PASS THAT THROUGH WITHOUT GOING TO VOTERS. IF THE VOTERS DID NOT APPROVE IT, YOU ARE NOW IN A SITUATION WHERE YOU'RE EFFECTIVELY VIOLATING YOUR CONTRACT. >> IT'S A TOUGH POSITION TO BE IN. >> THANK YOU. CAN YOU COME TO AUSTIN TOMORROW TOO? [LAUGHTER] >> I WILL DO MY BEST TO EQUIP YOU AS BEST I CAN. >> THIS IS VERY HELPFUL. THANK YOU. I APPRECIATE IT. >> MOVING ON TO STORMWATER. AGAIN, WE'VE TALKED A LOT ABOUT STORMWATER OVER THE LAST SEVERAL MONTHS. APPRECIATE YOUR PATIENCE WITH US AS WE'VE GONE THROUGH THIS ANALYSIS. AS I UNDERSTAND IT, WHERE THE COUNCIL HAS LANDED AT THIS POINT IS $6.50 FOR THE MONTHLY RESIDENTIAL STORMWATER FEE. RIGHT NOW THAT'S $6, THAT'S A 50 CENT INCREASE. WE ARE ALSO PROPOSING TO CHANGE THE METHOD OF BILLING, LOOKING AT IMPERVIOUS AREA FOR RESIDENTIAL CUSTOMERS. WE WILL TREAT ALL RESIDENTIAL CUSTOMERS THE SAME $6.50. WE WOULD CHARGE NON RESIDENTIAL CUSTOMERS BASED ON THEIR CALCULATED IMPERVIOUS AREA. THAT CALCULATED IMPERVIOUS AREA TO MAKE SURE WE MAINTAIN A RATIONAL NEXUS WITH WHAT WE'RE CHARGING FOR OUR RESIDENTIAL CUSTOMERS, WE WILL DEFINE AN EQUIVALENT RESIDENTIAL UNIT AS 5,285 SQUARE FEET OF IMPERVIOUS AREA. FOR EVERY 5,285 SQUARE FEET OF IMPERVIOUS AREA, YOU WOULD CHARGE A NON RESIDENTIAL CUSTOMER $6.50. OVERALL, RIGHT NOW, YOU'RE GENERATING ABOUT 2.4 MILLION UNDER THE CURRENT CHARGES. UNDER THIS PROPOSAL, WE'VE CALCULATED ABOUT $2.9 MILLION. THIS SUPPORTS THE CAPITAL FUNDING THAT YOU SAW EARLIER. WHAT IS THAT IMPACT? AGAIN, $0.50 I BELIEVE IT'S ABOUT 94% OF YOUR RESIDENTIAL CUSTOMERS. YOU HAVE A SMALL COMPONENT OF RESIDENTIAL CUSTOMERS THAT PAY LESS THAN $6 RIGHT NOW. WE WOULD PROPOSE TO TAKE EVERYBODY, ALL RESIDENTIAL CUSTOMERS TO $6.50. ON THE NON RESIDENTIAL SIDE. I HAVE A COUPLE OF COMPARISONS FOR YOU HERE. AGAIN, THIS IS ALL BASED ON THE SIZE, THE IMPERVIOUS AREA OF THE CUSTOMER, STARTING WITH A SMALL COMMERCIAL CUSTOMER. IN THIS CASE, IT'S A VETERINARIAN HERE IN TOWN, 43,000 SQUARE FEET. RIGHT NOW, THEY PAY 4,520. UNDER THIS PROPOSAL, THEY WOULD PAY 5,330. THAT'S AN $8.10 CENT MONTHLY INCREASE. HAVE A MEDIUM COMMERCIAL CUSTOMER, A FAST FOOD RESTAURANT. THEY CALCULATED OUT AT JUST ALMOST 44,000 SQUARE FEET OF IMPERVIOUS AREA. RIGHT NOW THEY'RE PAYING 6,160. UNDER THIS PROPOSAL, THEY WOULD ACTUALLY COME DOWN. THEY WOULD COME DOWN TO 5,395. THAT'S A $7.65 CENT DECREASE FOR THAT CUSTOMER. BUT AGAIN, THEIR IMPERVIOUS AREA IS FAIRLY COMPARABLE WITH THE SMALL COMMERCIAL CUSTOMER. AGAIN, WE'RE MAINTAINING THAT NEXUS. A LARGE COMMERCIAL CUSTOMER, A CHURCH, 127,000 ALMOST 128,000 SQUARE FEET, THEY PAY $78 AT THE MOMENT. THIS WOULD TAKE THEM TO 15,730. THIS IS A $79.30 CENT MONTHLY INCREASE. FINALLY, YOU HAVE A COMMERCIAL SUPERSTORE, 598,000 SQUARE FEET OF IMPERVIOUS AREA. THEY ALSO PAY $78 A MONTH. THIS WOULD TAKE THEM TO 73,645. AS WE LOOK AT THE SAME COMPARISONS, AGAIN, YOU'VE SEEN THESE BEFORE, TAKING MOST RESIDENTIAL CUSTOMERS THAT PAY $6 RIGHT NOW TO 650, YOU REALLY DON'T MOVE WITHIN THIS COMPARISON. THE MIDDLE RESIDENTIAL CLASS RIGHT NOW, THAT ONE TO FIVE ACRES, WE WOULD TREAT THEM THE SAME, $6.50 WOULD BRING THEM UP SLIGHTLY. THEN OUR LARGE OVER FIVE ACRE PROPERTIES THAT PAY $4.40 RIGHT NOW, TAKING THEM TO THE SAME BASICALLY PUTS THEM IN THE MIDDLE, $6.50 ON THIS CHART. AS WE LOOK AT OUR NON RESIDENTIAL CUSTOMERS, I WANTED TO PROVIDE THIS DATA. IF ANYBODY WANTS TO GO BACK AND RECALCULATE, THIS IS THE UNDERLYING DATA THAT GOES INTO THE NONRESIDENTIAL FACTORS. IF ANYBODY CAN'T SLEEP TONIGHT, HAVE SOME FUN. THERE'S THE DATA. SMALL COMMERCIAL CUSTOMER, VETERINARIAN, 43,000 SQUARE FEET, 8.2 ERUS, PAYING 45 20, THIS WOULD TAKE THEM TO 5,330. AGAIN, JUST BASICALLY BUMPING THEM TO THE MIDDLE OF THE CHART. FOR A MEDIUM COMMERCIAL CUSTOMER, 44,000 SQUARE FEET, 8.3 ERUS. [02:20:01] AGAIN, IN THIS CASE, THEY'RE 6,160, THIS WOULD MOVE THEM DOWN. THERE WOULD BE A DECREASE FOR THIS CUSTOMER DOWN TO 5,395. NOTE THAT THERE. THAT LARGE COMMERCIAL CUSTOMER, $78, RIGHT NOW, THE BOTTOM OF THE LIST WOULD TAKE THEM TO 157.30 24.2 ERUS. THEN FINALLY, OUR COMMERCIAL SUPERSTORE, RIGHT NOW, CHARGE $78 WOULD TAKE THEM TO 73,645. AGAIN, BASICALLY RIGHT IN THE MIDDLE OF THAT CHART. WITH THAT, OTHER QUESTIONS, I CAN ANSWER FOR YOU ON THE DRAINAGE SIDE OR BACK ON THE WATER WASTEWATER SIDE THIS EVENING. >> YOU'VE BEEN OUT HERE A LOT. >> I THINK AGAIN, I THANK YOU FOR YOUR PATIENCE. THANKS FOR ENTERTAINING ME FOR THESE LAST SEVERAL MONTHS. >> YEAH. AND YOU'RE STILL I HAD A MEDIUM RANGE COMPARED TO OUR NEIGHBORING CITIES. >> YES, MA'AM. THAT'S GOOD. >> YOU'LL HAVE ANY QUESTIONS? >> I HAVE ONE QUESTION ABOUT UTILITY BILLING. THERE WAS A NON DISCRETIONARY ITEM ABOUT MAILING, COST INCREASES, AND I BROUGHT THIS UP WITH JAMES AND JOHN WHEN WE MET. BUT IS THERE AN OPPORTUNITY HERE TO TRY AND HELP ENCOURAGE RESIDENTS TO START USING E DELIVERY? >> WE HAVE ACTIVELY BEEN DOING THAT. WE PUSH HEAVILY THAT WE HAVE ONLINE E BILLS. WE'RE GOING TO LOOK INTO THE LEGALITIES OF WHETHER WE CAN TURN EVERYBODY TO AN E BILL AND THEN HAVE THEM OPT BACK INTO MAILING BILLS. THAT WOULD BE AN OPTION. IT WOULD JUST BE A MAJOR CHANGE IN SERVICE. IF WE DID THAT, WE WOULD TRY TO INFORM PEOPLE MULTIPLE TIMES THAT, BUT WE NEED TO MAKE SURE THAT THAT IS A LEGALLY VIABLE OPTION. BUT THAT IS ANOTHER WAY THAT WE CAN LOOK AT IT AND THAT WOULD CUT DOWN SIGNIFICANTLY. MANY PEOPLE RECEIVE BOTH. THIS WOULD BE SOMETHING THAT WE COULD HEAVILY PUSH. THERE'S ALSO THE IDEA THAT YOU COULD CHARGE A FEE IF YOU WANTED YOUR BILL BILLED TO YOU. THERE'S A NUMBER OF IDEAS WE'RE DOING THAT COULD HELP DO THAT. >> THANK YOU, SIR. >> THANK YOU SO MUCH FOR YOUR TIME TO EVEN. >> AGAIN CHRIS, I WANT TO ASK YOU ONE SPECIFIC QUESTION. YOU RAN AN ANALYSIS BECAUSE WE STARTED TALKING ABOUT LEGISLATION. UNDER THIS CURRENT SOME OF THE BILLS THAT THEY'RE FILING, WHAT DOES OUR RATE LOOK LIKE UNDER THESE LIMITATIONS? THESE LIMITATIONS THAT ARE IN PLACE BY HOUSE BILL 73 OR HOUSE BILL 46. >> LET'S JUST START WITH HOUSE BILL 73. SO IF YOU LOOK AT THE FACTORS THAT ARE IN THE BILL RIGHT NOW, IT TAKES A STATEWIDE POPULATION CHANGE AND ADDS AN INFLATION CHANGE TO IT. THAT STATEWIDE POPULATION CHANGE IS LESS THAN 1.5% ACCORDING TO THE STATE DEMOGRAPHER. WHEN YOU TAKE THAT AND YOU ADD THE INFLATION CHANGE, I LOOKED AT IT EARLIER TODAY. IT'S ABOUT 3.6% WOULD BE THE OVERALL EXPENDITURE INCREASE YOU'D BE ALLOWED, 3.6%. THAT'S ALL YOU COULD DO YEAR OVER YEAR. AGAIN, WE'VE JUST TALKED ABOUT INCREASING WATER AND WASTEWATER RATES, 5.25%. THE MATH DOESN'T WORK AT THAT POINT. EVEN AS YOU LOOK AT THE 2.5% IN SENATE BILL 10, IT DOESN'T WORK. THE PROBLEM, ESPECIALLY WITH SENATE BILL, HOUSE BILL 73, IS IT IS APPLIED TO ALL EXPENDITURES, WHICH INCLUDES OPERATIONAL AND CAPITAL. IT DOES NOT EXCLUDE UTILITIES. UTILITIES ARE A WHOLLY DIFFERENT ENTITY. THEY'RE HANDLED IN A DIFFERENT FUND. IT IS A COMPLETELY DIFFERENT ASPECT OF GOVERNMENT, BUT THE BILL TREATS EVERYTHING THE SAME, AND THAT'S ESPECIALLY WHERE IT BECOMES PROBLEMATIC. >> AS AN EXAMPLE, FIRST RANCH, PUT INVESTING IN A WATER SYSTEM AND SEWER AND WOULD THAT DELAY THAT PROJECT? >> IF YOU COULD NOT ACCOMMODATE IT UNDER THAT EXPENDITURE CAP, THEN YES, IT WOULD FRANKLY MAKE IT IMPOSSIBLE. >> BUT AREN'T WE LAWFULLY INCREASE OBLIGATED TO DO THAT, TO PROVIDE THE INFRASTRUCTURE IN A PART OF TOWN WHERE GROWTH IS NECESSARY. >> WELL, AGAIN, IF YOU RUN THE UTILITY, YES, YOU HAVE A LEGAL OBLIGATION TO PROVIDE CONTINUOUS AND ADEQUATE SERVICE WITHIN YOUR SERVICE AREA WITH CONTINUOUS AND ADEQUATE SERVICE BEING DEFINED BY THE STATE. >> SOUNDS LIKE WE HAVE CONTRADICTING. >> IT'S A TRAP. WALL. IT'S A TRAP, OF COURSE, YOU'RE RIGHT. I. >> I'LL GO BACK TO SOMETHING THAT YOU SAID, MAYOR PRO TEM EARLIER, NEITHER ONE IS GOOD. AT WORST, THIS IS INTENTIONAL TO FORCE US TO DIVEST OUT OF OUR UTILITIES, [02:25:04] OR AT BEST, THEY DIDN'T EVEN COMPREHEND THIS AND ARE PUSHING THROUGH A LAW THAT THEY DON'T EVEN UNDERSTAND THE RAMIFICATIONS OF IT. NEITHER ONE IS GOOD. IT JUST SHOWS WHY WE HAVE TO GO DOWN THERE AND HAVE THESE CONVERSATIONS. I SINCERE HOPE THAT WE POINT THESE THINGS OUT, AND I'LL POINT AGAIN, THEY'RE PUTTING THESE THINGS TOGETHER WITHOUT TALKING TO ONE ELECTED OFFICIAL, ONE CITY MANAGER, NO CFOS, THEY'RE JUST PUTTING BILLS TOGETHER, NOT KNOWING THE RAMIFICATIONS OF THEM. FORTUNATELY, WE GOT TO SCRAMBLE WHEN UNDER 24 HOURS NOTICE TO GO EXPLAIN THE IMPACT ASSOCIATED WITH IT. I'M BACK OFF MY SOAPBOX, BUT THAT IS A CHALLENGE THAT WE HAVE WITH THESE LEGISLATION IS BEING PUSHED THROUGH. THEY'RE NOT ENGAGING US. THEY DON'T UNDERSTAND THE RAMIFICATIONS OF THE DECISIONS THAT THEY'RE PUTTING OUT THERE. >> JUST TO BE CLEAR, IT'S NOT OUR REPRESENTATIVE BECAUSE I SPOKE TO REPRESENTATIVE BUMGARNER TODAY, AND HE ASSURED ME THAT HE WAS NOT IN FAVOR OF THIS IN ANY WAY SHAPE OR FORM. HE'S NOT PROPOSED IT, HE'S NOT IN FAVOR OF IT. IT'S BEING DONE TO US BY OTHERS WHO DON'T EVEN KNOW US AND DON'T FRANKLY KNOW REALLY ABOUT THE MATH BECAUSE THE MATH DOESN'T WORK. AGAIN. >> THAT'S CORRECT. THE MATH DOES NOT WORK. THERE'S NO OTHER WAY AROUND IT. FRANKLY, WE COULD SIT HERE AND TRY AND FIX THE BILL. I DON'T KNOW THAT YOU CAN FIX THE BILL. WHEN YOU COME IN AND LOOK AT THE EXPENDITURE CAPS, IT ONLY EXCLUDES GO FUNDED PROJECTS. ESPECIALLY AS YOU THINK ABOUT UTILITIES, IF YOU GO AND PUT A WASTEWATER TREATMENT PLANT OUT TO THE VOTERS, IT'S NOT SEXY. PEOPLE DON'T WANT TO VOTE FOR A WASTEWATER TREATMENT PLANT. THEY NEED THEY DON'T WANT TO VOTE FOR IT. THEY WANT TO VOTE FOR PARKS AND THESE QUALITY OF LIFE ITEMS THAT THAT'S WHAT THEY WANT. THE TOWN HAS HISTORICALLY USED CO DEBT TO FUND UTILITIES, WHICH MAKES A LOT OF SENSE BECAUSE YOU'RE DEALING WITH WATER LINES AND WATER PLANTS AND THINGS LIKE THAT. THIS MAKES THAT PROBLEMATIC. YOU COULD NOT USE CO DEBT. YOU COULD NOT USE REVENUE BONDS, OTHER FUNDING SOURCES THAT ARE CRITICAL TO MAKE CITY GOVERNMENT WORK. >> CHRIS, I'VE GOT ONE LAST LOADED QUESTION FOR YOU. OUT IN WEST TEXAS, FOR SOME OF THE OTHER UTILITIES THAT HAVE BEEN PRIVATIZED, WHAT DO SOME OF THOSE RATES LOOK LIKE? >> THERE IS A DOCKET AT THE PUBLIC UTILITY COMMISSION RIGHT NOW, PUC STAFF HAS RECOMMENDED. NOW, THIS IS ONE DATA POINT. THIS IS NOT REPRESENTATIVE OF ALL PRIVATE PROVIDERS IN THE STATE, BUT THERE IS ONE UTILITY OUT IN THE MIDLAND ODESSA AREA. PUC STAFF JUST RECOMMENDED FOR THAT UTILITY. THIS CAME AS A RECOMMENDATION FROM THE STATE THAT A MINIMUM BILL FOR CUSTOMERS ON THIS SYSTEM, WATER AND WASTEWATER COMBINED BEFORE YOU TAKE A GALLON OF WATER OR PUT A GALLON OF WASTEWATER IN. THAT COMBINED MINIMUM BILL IS ALMOST $700 A MONTH. AGAIN, UNIQUE SITUATION, BUT IT IS A STANDALONE PRIVATE PROVIDER, AND WHAT THAT'S REFLECTING IS THE CAPITAL COST FOR THAT SYSTEM, BECAUSE THOSE ARE THE TYPES OF INVESTMENT THAT THAT SYSTEM NEEDS. WHEN WE GO TO THE STATE AND WE DO RATE MAKING AT THE PUBLIC UTILITY COMMISSION, IT IS COST BASED RATE MAKING. YOU LOOK AT O&M, YOU LOOK AT DEPRECIATION. YOU ALSO WITH A PRIVATE PROVIDER, YOU HAVE A PROFIT MOTIVE. THERE YOU'RE LOOKING AT A RETURN ON INVESTMENT. AS A CITY, YOU HAVE NO PROFIT MOTIVE. YOU SET A SERVICE LEVEL AND YOU RECOVER YOUR COST TO MEET THAT SERVICE LEVEL. YOU ARE A NOT FOR PROFIT ENTITY. THERE ARE SOME SIGNIFICANT DIFFERENCES THERE THAT IF YOU WERE TO GET INTO A SITUATION THAT YOU HAD TO DIVEST THAT YOU HAD TO PRIVATIZE, WE WOULD BE DRIVING COST UP FOR THAT PROFIT MOTIVE. >> WELL TO CHRIS'S POINT IN A FREE MARKET ECONOMY WHERE THERE'S COMPETITION, THEN EACH OF THE POTENTIAL PROVIDERS IS INCENTIVIZED TO KEEP THEIR COSTS LOW TO BE COMPETITIVE, BUT THIS WOULD BE A MONOPOLY TO YOUR POINT, THERE WOULD BE NO COMPETITION AND WHO CAN AFFORD A $700 WATER BILL? >> UTILITIES ARE A NATURAL MONOPOLY, AND THAT'S WHY WE TREAT THEM DIFFERENTLY BECAUSE THEY ARE A NATURAL MONOPOLY. THAT'S WHERE THE REGULATORY COMPACT COMES FROM. THAT'S WHY IT DOES MAKE SENSE FOR MUNICIPALITIES TO PROVIDE THAT SERVICE. IT IS WHOLLY UNIQUE AND DISTINCT. IT'S DIFFERENT. THAT'S WHY WE SEE ELECTRIC, NATURAL GAS, WATER, WASTEWATER PROVIDED BY PUBLIC ENTITIES. >> THANK YOU. >> ANY OTHER LOADED QUESTIONS? THANK YOU SO MUCH FOR YOUR TIME THIS EVENING. I APPRECIATE IT. >> THAT IS ALL THE PRESENTATIONS WE HAVE PREPARED FOR YOU TONIGHT, OF COURSE, [02:30:03] IF THERE'S ANY OTHER I DID JUST WANT TO GO OVER THE LIST OF THE THINGS WE DISCUSSED ABOUT THAT WE EXPECT TO SEE CHANGED BEFORE ADOPTION ON THE 15TH, AND I DO HAVE ONE MORE THAT I JUST DID FORGET TO BRING UP. THE ONE I HAD OVERLOOKED ON MY LIST, WE DID REALIZE THAT LAST YEAR WE HAD APPROVED A RECURRING BUDGET AMOUNT OF 700 THAT WAS FOR THE AXON TASERS IN THE CRIME DISTRICTS TAX. IN THE MIDST OF GETTING EVERYTHING IN THAT HAD GOTTEN DROPPED OUT, SO WE PROPOSE TO PUT THAT BACK IN JUST TO MAKE SURE THAT BUDGET FUNDING STAYS STABLE FOR THE POLICE DEPARTMENT. WE WILL BE REMOVING THE INDEPENDENCE FEST FUNDING TO BE CONSIDERED THROUGH A SEPARATE PROCESS AND PENDING APPROVAL OF THE PARKS F B BOARD, BRINGING THAT BACK AS A BUDGET AMENDMENT IF THAT IS AMENABLE TO THEM. WE WILL BE UPDATING THE STORMWATER REVENUE BASED ON THE 650 FEE DECISION THAT YOU GUYS ARE PROPOSING AND RECOMMENDING AT THIS POINT. THEN WE WILL BE INCREASING THE FIRE TRANSFER TO DEBT SERVICE. WE WILL CONFIRM THAT EXACT NUMBER FOR YOU BEFORE THE 15TH SO THAT YOU KNOW WHAT CHANGES WE WILL HAVE MADE IN THOSE NUMBERS BEFORE YOU MOVE TO ADOPTION. THE ONLY OTHER THING I RECALL US DISCUSSING AS A CHANGE IS NOT GOING TO HAVE A BUDGETARY IMPACT AT THIS POINT, BUT WE WILL WORK WITH POLICE ON SWAPPING A PURCHASE OF A TAHOE TO MOTORCYCLES INSTEAD. AT THE MOMENT, WE WILL NOT CHANGE ANY BUDGET FIGURES FOR THAT, THAT WILL BE HANDLED ON THE STAFF LEVEL. IF THERE ARE ANY ISSUES OR BUDGET AMENDMENTS THAT DO BECOME NECESSARY BECAUSE OF IT, THEY WILL BE BROUGHT BACK TO COUNCIL. IS THERE ANYTHING ELSE I AM MISSING THAT YOU REQUESTED OR YOU WERE EXPECTING TO SEE, BELIEVE WE ADDRESSED YOUR STORMWATER CONCERNS. CHRIS BRYAN, DO YOU HAVE ANYTHING MORE? BRYAN OUT FOR A WHILE. >> I HAD SEVERAL QUESTIONS, BUT THEY'VE ALL BEEN ASKED AND ANSWERED. SO I APPRECIATE THE THOROUGHNESS OF THE CONVERSATION AND FOR MY FELLOW COUNCIL MEMBERS FOR ASKING ALL THE QUESTIONS. THANK YOU. >> THEN THE NEXT STEPS FOR BUDGET PROCESS, NOTICES WE'RE GOING IN THE PAPER THIS WEEKEND. WE WILL HOLD THE PUBLIC HEARINGS AND THE BUDGET ADOPTION NIGHT WILL BE SEPTEMBER 15TH. IF YOU THINK OF ANYTHING ELSE BEYOND THAT, OF COURSE, FEEL FREE TO REACH OUT TO STAFF, AND WE WILL DO OUR BEST TO GET YOU ANSWERS AS QUICKLY AS POSSIBLE. THANK YOU. >> THANK YOU. >> WELL, I WANT TO THANK ALL THE STAFF THAT PUT THIS TOGETHER, ALL YOUR ENDLESS HOURS. I KNOW YOU ALL WORKED VERY HARD WITH THIS VERY TIGHT BUDGET THAT WE HAVE. YOU'RE GOING TO HAVE A LOT OF WORK THIS NEXT YEAR WITH ALL THESE BILLS. I WANT TO THANK JAMES FOR PULLING THIS TOGETHER AGAIN, STAFF, AND THEN COUNCIL FOR ALL THE HOURS THAT YOU PUT INTO LOOKING AT THIS BUDGET, AND THE BOOK WAS VERY THICK. THANK YOU FOR ALL THE DEPARTMENTS THAT CAME TONIGHT TO LISTEN TO THIS. IT IS NOW 8:33, AND WE ARE ADJOURNED FROM THIS WORK SESSION. GOOD NIGHT, FLOWER MOUND. * This transcript was compiled from uncorrected Closed Captioning.