Aug 10, 2024 City Council on 2024-08-10 9:00 AM (BUDGET WORKSHOP)

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MEETING OF THE DENTON CITY COUNCIL. THIS IS TODAY'S SATURDAY, AUGUST 10TH, 2024. IT

[A. Receive a report, hold a discussion, and give staff direction regarding the Fiscal Year 2024-25 City Manager’s Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. [Estimated Presentation/Discussion Time: 4 hours]]

RECEIVE REPORT, WHOLE DISCUSSION. GIVE STAFF DIRECTION REGARDING THE FISCAL YEAR 2024 2025. CITY MANAGER'S PROPOSED BUDGET, CAPITAL IMPROVEMENT PROGRAM AND FIVE YEAR FISCAL FORECAST. DOCTOR WILLIAMS. CHIEF FINANCIAL OFFICER I'M HERE TODAY TO PRESENT THE CITY MANAGER'S PROPOSED BUDGET FOR THE FISCAL YEAR 20 2425. SO AS WE GO THROUGH THE MORNING, WE'LL BE TALKING ABOUT AN OVERVIEW OF THE BUDGET, AN ECONOMIC OVERVIEW, GENERAL FUND, ENTERPRISE SPECIAL REVENUE COMMUNITY PARTNERSHIP GRANTS, INTERNAL SERVICE A LITTLE BIT ON THE BOND PROGRAM AND THE IMPACT FEES. AND THEN THE CAPITAL IMPROVEMENT PROGRAM, WHICH YOU SAW EARLIER IN THE SUMMER. SPEAKING OF EARLIER IN THE SUMMER, HERE'S WHERE WE ARE RIGHT NOW. WE ARE IN AUGUST 10TH. WE ARE AT THE BUDGET WORKSHOP. WE WILL MEET AGAIN ON AUGUST 20TH, AND THEN SEPTEMBER 10TH AND ADOPT THE BUDGET, THE TAX RATE AND THE CAPITAL IMPROVEMENT PLAN ON SEPTEMBER THE 17TH. AS A REMINDER, WHEN WE GO THROUGH THAT CAPITAL IMPROVEMENT PLAN, WHEN YOU DO ADOPT FOR THIS YEAR, YOU ARE ONLY ADOPTING FOR THE 2425 YEAR. THIS IS A GRAPHIC THAT YOU'VE SEEN MANY, MANY TIMES BY NOW. SO I WILL TRY TO GO QUICKLY THROUGH THINGS THAT WE'VE ALREADY GONE THROUGH. STOP ME AT ANY POINT. IF YOU HAVE QUESTIONS. THIS IS THE PROCESS THAT THE CITY GOES THROUGH TO CREATE THE BUDGET. SO WE KICK OFF IN JANUARY, FEBRUARY TIME FRAME. THEN WE GO THROUGH AN INTERNAL PROCESS OF SUBMISSIONS AND CITY MANAGER MEETINGS. WE HOLD MEETINGS WITH THE PUB. WE COME TO YOU FOR YOUR REVIEW AND THEN WE HOLD THIS BUDGET WORKSHOP. WE THEN HOLD THE PUBLIC HEARINGS THROUGHOUT SEPTEMBER AND ADOPT ON THE 17TH. THE BUDGET IS EFFECTIVE OCTOBER FIRST OF 2024. OKAY, SO AS A REMINDER AND WE'VE TALKED ABOUT THIS BEFORE, THE ADOPTED BUDGET IS THE LEGAL INSTRUMENT THROUGH WHICH THE CITY MAY COLLECT AND LEVY TAXES. STATE LAW REQUIRES THAT WE ADOPT A BUDGET BY SEPTEMBER THE 30TH FOR THE START DATE OF OCTOBER ONE. WE MUST ADOPT A BALANCED BUDGET. THIS MEANS THAT OUR OPERATING REVENUES AND OTHER FUNDING SOURCES MUST BE EQUAL TO OUR EXPENDITURES. THE CITY WIDE BUDGET, INCLUDING THE CAPITAL IMPROVEMENT PLAN, IS $2.35 BILLION FOR 20 2425. THAT'S AN INCREASE OVER THE PRIOR YEAR OF 20.26%. AND I'LL ASK THAT YOU KEEP THAT NUMBER IN MIND AS WE GO THROUGH THE NEXT SEVERAL SLIDES. GOVERNMENTAL ACCOUNTING RULES DETERMINE WHERE REVENUE NEEDS TO GO AS FAR AS THE FUNDS, AND THAT THEN DETERMINES WHERE REVENUES CAN BE SPENT. SO AS WE JUST TALKED ABOUT OUR TOTAL RESOURCES PLUS OUR REVENUE EQUAL OUR EXPENDITURE AND GOVERNMENTAL ACCOUNTING DICTATES HOW WE CAN USE THOSE FUNDS BASED ON FUND TYPE. SO OUR MAJOR FUNDS WILL GO THROUGH. THEN WE'LL TALK ABOUT SPECIAL REVENUE AND INTERNAL SERVICE. ANY QUESTIONS SO FAR? ANY QUESTIONS. THANK YOU. OKAY.

SO THAT NUMBER THAT I JUST ASKED YOU TO KEEP IN MIND, I ASKED THAT BECAUSE OF THIS NUMBER. SO INFLATION HAS BEEN A CHALLENGE. AND ANYBODY IN THE MARKET THIS PAST WEEK IT'S BEEN A CHALLENGE.

SO WHAT ARE WE SEEING IN THE ECONOMY AND HOW IS THAT GOING TO INFORM OUR DECISIONS AS WE MOVE FORWARD WITH THIS BUDGET. SO SINCE THE START OF THE PANDEMIC, WE'VE SEEN AN INCREASE IN INFLATION OF ABOUT 21.01%. NOW, WE DID SEE A LITTLE BIT OF RELIEF. WE DID COME OFF THAT A BIT AT 0.1%. SO THAT WAS WHEN WE CAME DOWN FOR JUNE. BUT THAT WAS THE FIRST TIME THAT WE HAD SEEN A DECREASE IN NEARLY THREE YEARS. SO WE'RE SEEING SOME CHANGES IN THE ECONOMY THAT ARE TALKING TO US AND TELLING US THAT THIS IS CONSTRUCTION. YOU'LL HEAR IN THE NEWS LOTS OF DIFFERENT IDEAS ABOUT WHAT HAPPENS NEXT. BUT OVERALL, WHAT WE'RE SEEING IS THAT WHAT HAPPENS NEXT IS STILL UP IN THE AIR. SO THE FEDS HAVE INCREASED THE INTEREST RATES FOR THE PAST SEVERAL YEARS. THE CURRENT RATE IS STILL AT 5.33%. THE FED MET ON JULY THE 31ST AND DID NOT DECREASE INTEREST RATES. AND THEY HAVE IN FACT BEEN A LITTLE BIT DOVISH AS TO WHETHER OR NOT

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GOING FROM NEGATIVE TO POSITIVE RATES. WE ALSO SEE THIS BECOMES A BIT OF A SELF-FULFILLING PROPHECY. THE MORE THAT WE SEE FEAR THROUGHOUT THE ECONOMY, THE MORE CONSTRICTION THAT WE SEE THE YIELD IS STILL INVERTED. AND IF WE SEE SOME CHANGES IN SEPTEMBER, I THINK IT'S ANTICIPATED AS OF THIS MORNING THAT THAT WOULDN'T BE MORE THAN 25 BASIS POINTS. SO IT WILL HELP. BUT WE'RE STILL GOING TO GO THROUGH A PERIOD OF UNCERTAINTY UNTIL WE GET TO THE OTHER SIDE OF THIS. AND THERE'S REALLY NO WAY FOR US TO KNOW WHAT THAT TIME FRAME IS. IS IT 18 MONTHS? IS IT 24 MONTHS? IS IT 36 MONTHS? AND THIS IS A FEDERAL ELECTION YEAR, AND WE HAVE TWO CANDIDATES WITH VERY DIFFERENT VIEWS ON TAXATION, WITH VERY DIFFERENT VIEWS ON SUPPORT FOR SOCIAL SERVICES. SO THAT ELECTION IS GOING TO MAKE A BIG DIFFERENCE IN HOW WE TALK ABOUT NEXT YEAR WHEN WE GET TO THAT POINT. ANY QUESTIONS? I DO, I'LL ASK YOU. YOU'VE TOUCHED ON IT A COUPLE OF TIMES, BUT CAN YOU GIVE A WORKING DEFINITION OF CONSTRICTION? CONSTRICTION IN THE ECONOMY IS WHERE WE START TO SEE THE FLOW OF MONEY BECOMING LESS AND LESS AVAILABLE. SO WHAT WE'RE SEEING RIGHT NOW IS THAT WHILE WE STILL HAVE CASH, OF COURSE IN THE ECONOMY, THINGS START TO GET HARDER AS FAR AS BEING ABLE TO ACCESS THAT MONEY AND THE LIQUIDITY OF THAT MONEY.

DOES THAT MAKE SENSE? CERTAINLY. AND THEN BASIS POINTS, YOU SAID 25 BASIS POINTS FOR THE AVERAGE JOE. WHAT ARE YOU REFERRING TO THERE A BASIS POINT IS 1/100 OF A PERCENT OKAY. THANK YOU. AND THAT'S THAT'S RELATED TO THE INTEREST RATE CORRECT. YES. THE FED FUNDS RATE. SO I REFERRED TO IT HERE AS INTEREST RATE. IT IS ACTUALLY THE FED FUND RATE WHICH IS THE TARGET RATE SET BY THE FED FOR THE OVERNIGHT RATE. SO THE OVERNIGHT RATE IS WHAT OCCURS IN YOUR BANK AT THE END OF THE DAY. AND HOW THAT RATE CHANGES AS FAR AS WHAT YOU CAN EARN ON OVERNIGHT MONEY. THANK YOU. YOU'RE WELCOME. OKAY SO WE'RE GOING TO SHIFT FOCUS A LITTLE BIT TO THIS BUDGET. AS WE GO THROUGH THE PRESENTATION. I DO ASK THAT WE KEEP IN MIND WHAT WE COULD BE LOOKING AT GOING FORWARD. AND I CAN'T STRESS ENOUGH THAT THIS BUDGET BEING PROPOSED TO YOU TODAY BY OUR CITY MANAGER IS FISCALLY SOUND. THIS IS WHAT WE CAN AFFORD TO DO WITH THE ASSUMPTIONS THAT WE'VE MADE. SO MOVING ON FUND BALANCE TARGETS. SO GASB 54 DICTATES THAT WE MUST HAVE A FUND BALANCE TARGET FOR THE GENERAL FUND WE DO, AND OURS FOLLOWS BEST PRACTICE FROM GFOA. WE HAVE A 20% TARGET WITH A 5% RESILIENCY RESERVE. THE FUND BALANCE TARGETS ARE IN PLACE FOR TIMES OF ECONOMIC DISTRESS. UNUSUAL CIRCUMSTANCES, LARGE LEGAL SETTLEMENTS, THINGS THAT YOU

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THEY CHARGE FOR THE SERVICES THAT THEY PROVIDE AS OPPOSED TO THE GENERAL FUND, WHICH IS PRIMARILY FUNDED WITH SALES TAX AND PROPERTY TAX. IN OUR PROPRIETARY FUNDS, WE HAVE A MINIMUM OF 8% ENDING WORKING CAPITAL, WORKING CAPITAL IS THE DIFFERENCE BETWEEN YOUR CURRENT ASSETS AND YOUR CURRENT LIABILITIES. SO WHEN YOU LOOK AT THE BALANCE SHEET, THIS DOES NOT INCLUDE THINGS LIKE OPEB AND PENSION OBLIGATIONS. THIS IS TRULY OUR CURRENT OR NEAR TERM ASSETS AND OUR CURRENT OR NEAR TERM LIABILITIES. IF A FUND FALLS BELOW THE POLICY. OUR POLICY DOES REQUIRE A FIVE YEAR PLAN TO REPLENISH BALANCES. OPERATING RESERVES MINIMIZE FLUCTUATION IN RATES DUE TO UNFORESEEN EITHER REVENUE AND EXPENSE VARIATIONS OR EMERGENCIES. RIGHT NOW, ALL OF OUR PROPRIETARY FUNDS ARE MEETING POLICY, WITH THE EXCEPTION OF THE ELECTRIC FUND. IN THIS BUDGET, WE ALSO TOOK INTO CONSIDERATION POPULATION GROWTH. WE'VE TALKED ABOUT THIS A LITTLE BIT. WE ARE BLESSED THAT WE ARE EXPERIENCING GROWTH IN THE CITY OF DENTON. WE'RE EXCITED ABOUT IT. WE'RE SEEING AN INCREASE. WE THINK IN 24, 25, ABOUT 2.9%, AND WE ANTICIPATE THAT'S GOING TO GOING TO CONTINUE TO INCREASE IN 25, 26 AT ABOUT 2.85%. THIS GIVES US AN OPPORTUNITY IN OUR FINANCIAL FORECASTING TO LOOK FORWARD AND ANTICIPATE WHERE ADDITIONAL REVENUES MAY BECOME AVAILABLE TO THE CITY. CITIES THAT ARE NOT GROWING DO NOT HAVE THAT OPPORTUNITY, SALES TAX FOR 2425 IS ESTIMATED TO COME IN ABOUT 5.26% OVER THE COLLECTIONS ESTIMATE FOR 2324. AND WE SEE AN AVERAGE GROWTH RATE IN THE CITY OF DENTON AT ABOUT 7%. AND THAT'S REALLY WHEN I'VE TALKED ABOUT WE'RE REVERTING TO THE MEAN THAT THAT'S OUR MEAN IS ABOUT THAT 7% ASSESSED VALUATIONS. SO WE RECEIVED THE ASSESSED VALUATIONS AT THE END OF JULY, THE TOTAL CERTIFIED APPRAISED VALUE FOR THE CITY OF DENTON IS 21.2 BILLION. THAT'S A 10.16% INCREASE OVER THE PRIOR YEAR. THAT DOES NOT INCLUDE THE TERS, INCLUDING THE TERS. WE GET TO 11%. THE 2526 AND FUTURE ASSUMES A REDUCED MO RATE TO CORRESPOND WITH AV INCREASES. WELL, I THINK THAT WE WILL CONTINUE TO SEE AV INCREASES INTO THE NEXT SEVERAL YEARS. THOSE INCREASES WILL DECREASE IF THAT MAKES SENSE. OUR INCREASES WILL DECREASE, AND AS WE TALK THROUGH SOME MORE OF THE PRESENTATION, WE'LL HAVE AN OPPORTUNITY TO LOOK AT WHAT THAT LOOKS LIKE AND WHERE WE'VE SEEN THOSE SPIKES AND WHERE WE'RE NOW SEEING REVERSION TO THE MEAN ALL THE WAY AROUND. WE ANTICIPATE COLLECTIONS AT 99.5%. AND THIS PROPOSED BUDGET FROM OUR CITY MANAGER PROPOSES A TAX RATE OF 0.585420 PER $100 OF ASSESSED VALUATION. THIS BUDGET TAKES INTO ACCOUNT OUR COMMITMENT TO BE AN EMPLOYER OF CHOICE. THERE ARE PROPOSED INCREASES FOR OUR COLA AND FOR A PROPOSED MERIT OF 2.5% CITYWIDE. THE COST FOR THOSE INCREASES ARE LISTED HERE. CITYWIDE, THE COLA IS ABOUT 3.4 MILLION, AND TO THE GENERAL FUND ALONE, THAT'S ABOUT 1.2 MILLION FOR THE MERIT. IT'S ABOUT 2.5 MILLION CITYWIDE AND 700,000 TO THE GENERAL FUND CIVIL SERVICE INCREASES ARE SET BY CONTRACT, AND IT'S MARKET PLUS 5%. AND THEN THE CITY TOOK A LOOK THIS YEAR AT OUR MEDICAL, FUND AND HR DID QUITE A BIT OF WORK TO LOOK AT THE PLANS THAT WE OFFER TO OUR EMPLOYEES. OVERALL, WE HAVE A 10% INCREASE IN MEDICAL COST.

THE EMPLOYER IS BEARING THAT COST. HOWEVER, IN SEVERAL WEEKS, WHEN EMPLOYEES RECEIVE INFORMATION ABOUT CHANGES IN PLANS, SOME OF THE EMPLOYEES MAY CHOOSE A PLAN THAT IS EITHER A LITTLE BIT MORE OR LESS THAN WHAT THEY CURRENTLY HAVE. AND WE'VE GONE THROUGH AND REALLY LOOKED AT THAT STRUCTURE IN THE EQUITY OF IT. SO HR WILL PROVIDE THAT INFORMATION WHEN IT'S AVAILABLE IN A COUPLE OF WEEKS. BUT THE ACTUAL COST OF JUST MEDICAL THAT THE CITY DID COVER.

BUT EMPLOYEES MAY SEE CHANGES BECAUSE PLAN CHANGES HAVE OCCURRED IN TOTAL. THAT INCREASE

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SO WHEN I USE THE TERM CITYWIDE, I'M REFERRING TO ALL OF THE CITY'S OPERATING FUNDS. WHEN WE CLARIFY TO JUST THE GENERAL FUN, WE'RE TALKING ABOUT JUST THE DEPARTMENTS THAT REST WITHIN THE GENERAL FUND, ADMINISTRATIVE SERVICES, POLICE, FIRE FOLKS THAT ARE FUNDED BY PROPERTY AND SALES TAX, BUT CITYWIDE INCLUDES WATER, WASTEWATER, SOLID WASTE, ETC. ANY REPRESENTATIVE FROM DISTRICT THREE. WOULD YOU SAY YOU'RE CLOSE TO THE CONSENSUS VIEW IN TERMS OF YOUR OUTLOOK? IT STRIKES ME AS I'M NOT A, INTENSE STUDENT OF THIS. AND YOU ARE. BUT IT STRIKES ME THAT YOU'RE MAYBE MORE BEARISH THAN THE CONSENSUS ON THE OUTLOOK. DO YOU THINK THAT'S FAIR? DEPENDS ON WHO WHO THE OUTLOOK COMES FROM. RIGHT. THE OUTLOOK HAS BEEN CHANGING HOURLY. SO IT DEPENDS ON WHERE ARE YOU GETTING YOUR OUTLOOK. IS YOUR OUTLOOK COMING FROM THE WALL STREET JOURNAL AND THOSE ANALYSTS. OR IS YOUR OUTLOOK COMING FROM, ANALYSTS LOOKING DIRECTLY AT THE MARKET? IS IT COMING FROM FOLKS THAT ARE AT THE DESK AT THE TRADING DESK? SO I, I THINK IT DEPENDS. IT CERTAINLY DOES, I MEAN, YOU KNOW, EVEN IF SO, EVEN IF THE CONSENSUS OF, YOU KNOW, WHATEVER THE CONSENSUS IS, IS FOR MORE LIKE SOFT LANDING, THERE'S NOTHING WRONG WITH PLANNING FOR THE WORST. AND THEN MAYBE HAVING A PLAN FOR WHAT? TO DO IF YOU GET SURPRISES ON THE UPSIDE, TOO. SO I'M. I'M JUST. IT'S JUST A QUESTION. YES. IT DOESN'T NECESSARILY SAY SPEND IT BEFORE YOU KNOW YOU HAVE IT, YOU KNOW. RIGHT. SO YES. THANK YOU. ABSOLUTELY. AND BECAUSE WE ARE STEWARDS OF PUBLIC TRUST AND PUBLIC FUNDS, I THINK THAT WHEN WE LEAN ON THE SIDE OF MORE CONSERVATIVE, UNTIL WE SEE WHAT HAS HAPPENED, WE END UP IN A BETTER POSITION IN THE LONG RUN.

WE HAD THESE CONVERSATIONS IN WICHITA FALLS OVER THE LAST SEVERAL YEARS, AS WE'VE SEEN ALL OF THIS CHANGE HAPPEN AND REMAINED VERY CONSERVATIVE AS WE WENT THROUGH THIS PROCESS. THAT WAS A CHOICE THAT THAT CITY COUNCIL MADE AT THE TIME. BUT WE HAD THESE SAME CONVERSATIONS, AND I THINK THAT COMING FORWARD TO YOU AND SAYING, HEY, THIS IS THIS IS WHERE WE'RE AT WITH WHAT WE KNOW TODAY AND WHAT WE KNOW TODAY IS THAT TOMORROW COULD BE DIFFERENT. BUT THIS IS THIS IS WHAT WE KNOW TODAY. ALL RIGHT. ANY OTHER QUESTIONS? I JUST DO WANT TO IN REFERENCE TO THE LAST SLIDE, I DO WANT TO POINT. I THINK THE NUMBER WAS SEVEN ISH PERCENT ACTUAL INFLATION OR, TWO. SO WE'RE TALKING ABOUT A COST OF LIVING ADJUSTMENT ROUND NUMBERS 5.5. BUT ACTUAL INFLATION IS AROUND SEVEN. IS THAT ACCURATE NOT ACCURATE YEAR OVER YEAR INFLATION. RIGHT NOW IS ABOUT THREE AND A HALF OKAY. HOWEVER INFLATION COMPOUNDS. SO WE WENT THROUGH THIS PROCESS LAST YEAR AND DID A COMPENSATION STUDY BECAUSE Y'ALL PUT THE FOCUS ON BEING AN EMPLOYER OF CHOICE, AND YOU MADE THOSE ADVANCEMENTS. SO THIS KEEPS US RELATIVE TO MARKET. IT'S STILL NOT WHERE WE'D LOVE TO BE IN AN IDEAL WORLD, BUT IT DOES KEEP US RELATIVE. AND I, YOU KNOW, WILL MENTION WE, AS MOST CITIES, HAVE TROUBLE WITH RECRUITING. THAT'S GOING TO CONTINUE. AND THE COMPETITION HAS GOTTEN VERY, INTENSE FOR OTHER CITIES TO, YOU KNOW, CONTACT FOLKS AND SEE WHAT THEY'RE INTERESTED IN. SO ESPECIALLY HERE IN THE METROPLEX, I THINK IT'S IMPORTANT THAT WE STAY COMPETITIVE. AND MAYOR WE OUR HR DEPARTMENT DID LOOK AT COST OF LIVING IN OUR AREA. AND DENTON COUNTY IS 7.69% THIS LAST YEAR. COST OF LIVING. OKAY YEAH. OKAY SO WHAT DO YOU IS THAT THE SAME NUMBERS 3.5. YOU SAID IS THAT JUST NATIONAL VERSUS. THAT'S INFLATION. THAT'S WHERE INFLATION IS RIGHT NOW. AND THEN COST OF LIVING AND THEN COST OF LIVING IS CALCULATED BASED OFF OF THE COST TO LIVE IN DENTON. SO IT'S WHAT HAVE WE SEEN AS INFLATIONARY FACTORS IN DENTON. OKAY SO OUR HOUSING COST MAY BE INCHING OUT WITH THE NATIONAL AVERAGES. BUT WHEN WE ESTABLISH COST OF LIVING WE'RE LOOKING AT THE YEAR AS A WHOLE. AND THEN WHEN WE'RE TALKING ABOUT INFLATION WE'RE TALKING ABOUT THE RATES COMING OUT OF THE FEDERAL GOVERNMENT MONTHLY. OKAY. GOT IT. AND IF I'M EVALUATING BOTH OF THOSE NUMBERS, DO THOSE ARE THEY EMBEDDED IN EACH OTHER. ARE THEY TO BE CONSIDERED LIKE DO THEY

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SO WHAT NATIONWIDE HAVE WE SEEN IN THE COST OF OIL AND SERVICES AND GOODS. AND HOUSING. WHEN WE LOOK AT THE COST OF LIVING FOR DENTON, WE'RE LOOKING AT THOSE THINGS AS WELL. BUT WE'RE LOOKING AT THEM AT A DIFFERENT POINT IN TIME. OKAY. GOT IT. OKAY. ANY OTHER QUESTIONS? THANK YOU. THANK YOU. OKAY. WE'RE MOVING REALLY QUICK. KILL WE MIGHT, WE MIGHT BEAT OUR FOUR HOURS. LET'S GET IT. I DON'T KNOW, I DON'T KNOW THAT THESE HEELS CAN DO FOUR HOURS. YEAH YOU'RE RIGHT. OKAY, WE'RE GOING TO MOVE ON TO THE GENERAL FUND. THIS GIVES YOU A GRAPHIC VIEW OF THE REVENUE SOURCES IN THE GENERAL FUND. AS I'VE MENTIONED, SEVERAL TIMES, THE BIGGEST REVENUE SOURCES IN THE GENERAL FUND ARE PROPERTY TAX AND SALES TAX. THE CURRENT PROPERTY TAX RATE, JUST FOR REFERENCE IN THE CURRENT YEAR, IS 0.560682 AND SALES TAX IN DENTON COMBINED WITH STATE TAX IS ABOUT 8.25%. AND THAT STANDARD THROUGHOUT THE STATE OF TEXAS. LOOKING AT TOTAL PROPERTY TAX REVENUE, AS I MENTIONED, THE CERTIFIED VALUATION LESS THE TERS IS ABOUT 10.16%. AND WE ASSUME COLLECTIONS AT 99.5%. WHAT I'VE SHOWN HERE ARE THE TOTAL COLLECTIONS FROM 20 2021 TO THE ANTICIPATED PRELIMINARY COLLECTIONS FOR 2425. SO OF NOTE HERE AND YOU'RE GOING TO SEE THIS THROUGHOUT THE INFORMATION THAT I WILL SHARE WITH YOU IS THAT 22, 23 AND 2324 WE SAW SPIKES PRIOR TO THOSE YEARS WE WERE RUNNING A MUCH MORE, I GUESS YOU COULD CALL IT STABLE INCREASE. AND NOW WE'RE SEEING THAT WE'RE STARTING TO COME BACK TO THAT. WE HAVE HAD QUITE A BIT OF CHANGE IN, IN THE CITY OF DENTON, WHICH HAS BEEN GREAT. SO AGAIN, THAT THAT'S GROWTH. THAT'S HELPFUL. BUT FOR THE YEARS GOING FORWARD, WE'RE GOING TO SEE US GETTING BACK TO WHERE WE'VE HISTORICALLY BEEN. SO THIS IS A GRAPHIC THAT SHOWS YOU THE CERTIFIED ASSESSED VALUE AND THE PERCENT CHANGE THERE. SO THIS 21.24 BILLION THAT I MENTIONED BEFORE. AND THE 10.16% SHOWN HERE FOR 2425. AGAIN, YOU CAN SEE SPIKE YEARS. SO WHEN YOU'RE LOOKING AT YOUR CERTIFIED ASSESSED VALUE, THEY'RE SAYING WHAT WAS YOUR VALUE ON JANUARY 1ST? HERE'S YOUR CERTIFICATION, SO YOU SEE YOUR SPIKE YEARS RIGHT THERE. AND THEN CHANGE IN ASSESSED VALUE. SO AS I MENTIONED, WE'VE SEEN A LOT OF GROWTH. AND THIS CHART REALLY ILLUSTRATES THAT GROWTH. SO WHEN WE'RE LOOKING AT THE NEW VALUE SO YOU HAVE THE NEW VALUE HERE ON THE LEFT. THEN THE CHANGE IN NEW VALUE AND THE PERCENT CHANGE ON THE FAR RIGHT. YOU CAN SEE THAT WE'VE HAD SIGNIFICANT INCREASES FROM WHERE WE HAVE HISTORICALLY RUN. SO HISTORICALLY WE WERE AT THAT 3.86 TO 4.615 24. AND NOW WE'RE IN THE BILLIONS. SO WE'VE HAD A BIG JUMP IN NEW VALUE ADDED TO OUR TAX ROLL. AND FOR CLARIFICATION, NEW VALUE ADDED TO THE TAX ROLL IS VALUE FOR THE PROPERTY THAT WAS NOT ASSESSED IN THE PRIOR YEAR. SO YOU BUILT SOMETHING NEW. THAT IS YOUR CHANGE IN NEW VALUE. WE'VE SEEN THIS ONE SEVERAL TIMES NOW, BUT JUST AS A REMINDER, SENATE BILL TWO WAS THE PROPERTY TAX REFORM AND TRANSPARENCY ACT. IT PASSED IN 2019, IN THE STATE OF TEXAS AND BECAME EFFECTIVE ON JANUARY 1ST OF 2020. IT CHANGED THE TERMINOLOGY THAT WE USE WHEN WE DISCUSS THE PROPERTY TAX RATE. WE NOW HAVE A NO NEW REVENUE RATE, WHICH IS ESSENTIALLY THE RATE THAT KEEPS OUR REVENUE AT THE SAME RATE AS IT WAS IN THE PRIOR YEAR. LESS NEW VALUE ADDED TO THE PROPERTY TAX ROLL AND THEN WE HAVE THE VOTER APPROVAL RATE, WHICH IS LIMITING THE OPERATIONS AND MAINTENANCE PORTION OF THE TAX RATE INCREASE TO 3.5% OVER THE PRIOR YEAR, LESS NEW PROPERTY ADDED TO THE TAX ROLL. SO THIS IS WHERE WE

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BUT WE CAN I MEAN, AT SOME POINT IN THIS TOTALITY OF DISCUSSION, I WOULD LOVE TO LOVE TO SEE HOW THOSE ARE, BECAUSE, YOU KNOW, IT'S NOT FAIR TO COMPARE OUR $155,000 OR 155,000 PERSON BUDGET TO A BUDGET OF 130,000 OR SOMETHING LIKE THAT, BECAUSE WE HAVE 20,000 MORE PEOPLE TO SERVICE. AND THAT THOSE JUST HAVE CONCOMITANT OBLIGATIONS, YOU KNOW, THAT JUST THEY JUST IT JUST SCALES WITH THE POPULATION. SO IT YOU KNOW, SOMETHING THAT SEEMS REALLY EXCESSIVE WHEN YOU NORMALIZE IT TO THE NUMBER OF PEOPLE, SEEMS LESS EXCESSIVE. SO I WOULD LOVE TO SEE THAT IN, IN FUTURE EFFORTS. SURE. THANK YOU. ALL RIGHT. ANY OTHER QUESTIONS? I DO HAVE, A REQUEST. IF WE COULD GET THE I. I'M ALWAYS ENCOURAGED BY OUR SALES TAX. AND SO IF WE COULD GET, LIKE, THE PAST, I'D SAY FOUR YEARS OR SO RAMPING UPHAT JUST THE PERCENTAGE, RIGHT. JUST A PERCENTAGE VERSUS THE AD VALOREM PERCENTAGE, BECAUSE THAT THAT TO ME IS, IS NOT SO PROPERTY TAX, BUT THAT, THAT TO ME IS, IS A IS A GOOD COMPARISON. SO I'D JUST LIKE TO SEE THE LAST FOUR YEARS, LET'S SAY OR THREE YEARS, WHATEVER MAKES SENSE, SALES TAX AND PROPERTY TAX PERCENT ONLY JUST SIDE BY SIDE. OKAY YEAH. SO WE'RE WE'RE ABOUT TO SHIFT INTO THE CONVERSATION ON SALES TAX, BUT I DON'T HAVE THEM LISTED SIDE BY SIDE. SO WE CAN DEFINITELY DO THAT. YEAH. AND THEN ALSO, IF WHATEVER YOU CAN PROVIDE FROM A YOU MAKE THE STATEMENT ABOUT GETTING BACK TO LEVELING OUT ON HISTORICAL VALUES, THAT SORT OF THING. I, I HAVE SOME QUESTIONS AROUND THAT BECAUSE I, WE'RE IN A UNIQUE SITUATION WHERE WE'LL HAVE NEW HOUSING BUILT, BUT THAT I BELIEVE THERE'S A TREND AND IT'S NOT UPTICK HERE YET, BUT I THINK IT'S COMING ON TEAR DOWN REBUILD. RIGHT. BECAUSE YOU'RE NOT GOING TO HAVE THREE QUARTER ACRE LOTS EVER AGAIN. THAT THAT IS HISTORY. AND SO BUT WE HAVE A SIGNIFICANT AMOUNT OF THAT HOUSING STOCK HERE IN DENTON WITH NEW PEOPLE COMING TO DENTON. I JUST WANT TO UNDERSTAND THAT METHODOLOGY THAT THEY'RE USING IN THE OUT YEARS TO KIND OF UNDERSTAND THOSE TRENDS, BECAUSE I THINK THAT'S I JUST WANT TO AND IT GOES I GUESS THAT GOES TO MY NEXT, MY NEXT, REQUEST AS WELL. CAN YOU REDUCE IN THE WRITING SOME KIND OF PROFILE OF WHAT MOVES THE

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REPRESENTATIVE FROM DISTRICT THREE. YEAH. JUST TO MAKE A POINT TO MAYBE FRAME FUTURE DISCUSSIONS. IT'S YOU KNOW, AS YOU'RE LOOKING AT WHICH TYPES OF ACTIVITIES, YOU KNOW, WOULD DRIVE INCREMENTAL PROPERTY TAX, YOU GOT TO ALSO ASSUME THAT SOME OF THEM DRIVE INCREMENTAL COSTS TO SERVE. YES. IT'S NOT LIKE YOU MAKE MONEY. YOU KNOW, GROWTH DOESN'T ALWAYS MAKE MONEY. YOU JUST YOU GROW THE REVENUE AND THE EXPENDITURES. ABSOLUTELY. YOU KNOW, SOME SOME THINGS I MEAN INDUSTRY LESS SO. RIGHT SO POINT FOR FUTURE CONSIDERATION. THANK YOU. GOOD. OKAY THANK YOU FOR THAT DISCUSSION, OKAY. SO AS WE MOVE OFF OF PROPERTY TAX, THE LAST SLIDE THAT I HAVE HERE IS APPROXIMATION OF THE IMPACT OF THESE CHANGES IN OUR TAX RATE. THE AVERAGE IMPACT PER MONTH WILL BE ABOUT $24.25. WHAT WE'RE SHOWING HERE IS IN FISCAL YEAR 2324, WHICH IS THE YEAR WE'RE CURRENTLY IN THE AVERAGE RESIDENTIAL VALUE WAS ABOUT 344,000. OUR TAX RATE WAS THAT 0.56 THAT WE JUST TALKED ABOUT. AND SO THE TAX BILL WAS ABOUT 1900 TOTAL. THE AVERAGE RESIDENTIAL VALUE HAS INCREASED. SO EVERY TIME THAT THAT CERTIFIED VALUE INCREASES, THE AVERAGE RESIDENTIAL VALUE INCREASES. WE SEE AN INCREASE NOW TO ABOUT 379,000. THE TAX RATE THAT IS BEING PROPOSED IS THE 0.585420, WHICH BRINGS THE TAX BILL UP TO ABOUT 2200. AND THIS IS ANNUALIZED. THAT ANNUAL CHANGE IS ABOUT $291. THE VALUE FROM JUST THE INCREASE FROM JUST THE VALUATION INCREASE IS ABOUT 203 OF THAT. AND THE RATE INCREASE IMPACT FROM THE CITY OF DENTON IS ABOUT 88. SO WHEN WE LOOK AT WHERE WE'RE AT TO WHERE OTHER CITIES IN THE METROPLEX

[00:35:06]

AND THEN THIS SUMS UP WHAT WE ARE LOOKING AT WITH AVERAGE TAX BILL. THAT'S YOUR BLUE BARS. AND THEN THE CPI. SO THAT'S WHAT WE'VE TALKED AT LENGTH ABOUT THAT INFLATION WE'RE SEEING. AND THEN THE AVERAGE TAX BILL PERCENT CHANGE. SO AS WE ARE MAKING THESE CHANGES WE'RE ALSO SEEING THE CHANGES IN THE AVERAGE TAX BILL. WE'RE SEEING THAT CPI COMPOUNDED COMING IN AT THAT 20 ISH PERCENT. SO THIS IS JUST A GRAPHICAL VIEW OF THE DATA WE'VE TALKED ABOUT PUT TOGETHER INTO ONE. OKAY. WE WILL MOVE ON TO SALES TAX. I DO WANT TO GO BACK. YEP. CAN WE GO BACK TO THE BAR GRAPH THERE. GENERAL FUND ASSUMPTIONS. PROPERTY. ONE MORE. YES. SO YOU SAID THE YELLOW IS IF WE IS WHERE WE ARE. IF TODAY IT'S THE PROPOSED RATE IN THIS BUDGET OKAY. THE GREEN IS WHERE WE ARE TODAY. GOT IT. AND THEN YOU HAVE GO AHEAD. I JUST WANT TO POINT OUT WE SHOW THIS GRAPH EVERY YEAR. BUT SOMETHING TO KEEP IN MIND IS LIKE WHEN WE'RE COMPARING OURSELVES TO LEWISVILLE AND MCKINNEY, THEIR THE DEBT SERVICE PART PORTION OF THEIR TAX RATE IS SUBSTANTIALLY LOWER THAN OURS. LEWISVILLE THE LAST TIME I CHECKED WAS ABOUT $0.11, COMPARED TO OUR $0.34, SO THERE IS WHILE THERE'S A PORTION OF THAT TAX RATE THAT WE DO CONTROL, THAT FUNDS THE GENERAL FUND THAT YOU CAN SEE EARLIER, WE ARE PROPOSING TO REDUCE IT.

THE OTHER PORTION IS THAT DEBT SERVICE PORTION, WHICH THE INCREASES FOR NEXT YEAR ARE DUE TO THE 23 BOND PROGRAM, WHICH VOTERS VOTED ON. WE TOLD THEM THERE WAS GOING TO BE AN INCREASE AND THEY VOTED, SO WE'RE TRYING TO MAINTAIN THAT, JUST KEEPING UP WITH OUR DEBT SERVICE, BUT ALSO BEING RESPONSIBLE ON THE O&M SIDE TO REDUCE IT WHEN WE ARE SEEING THE INCREASES IN THE AV VALUES. THANK YOU. AND THAT'S A GREAT POINT BECAUSE IT REMINDS ME OF SOMETHING. OKAY TRADITIONALLY, I SAY TRADITIONALLY IT'S BEEN ONE YEAR THIS YEAR. ALSO, I'D LIKE TO SAY I'D LIKE TO ASK FOR THERE'S A PRINT OUT OF, THAT THE I THINK THE APPRAISAL DISTRICT GIVES US OR WHOEVER ACCOUNTS FOR IT HAS A LIST OF THE PROPERTIES THAT ARE TAX EXEMPT. AND THAT BOTTOM LINE NUMBER. RIGHT. AND SO IF I COULD GET THAT AGAIN, THAT'D BE GREAT BECAUSE THAT'S THAT'S BECAUSE YEAH, THIS IS NOTEWORTHY TO ME FOR A NUMBER OF REASONS THAT THAT'S VERY HELPFUL. THANK YOU. THE OTHER THING IS MCKINNEY HAS ABOUT 50,000 MORE PEOPLE THAN US. AND SO I JUST WANT TO KEEP THAT IN MIND THAT IT'S NOT YOU KNOW, I I'LL LEAVE IT THERE. THERE ARE AROUND 200,000 PEOPLE. REPRESENTATIVE FROM DISTRICT FOUR. THANK YOU. ASSISTANT CITY MANAGER. 11 $0.11 VERSUS $0.30. LEWISVILLE. MAKING THAT COMPARISON THAT YOU WERE. TELL ME WHY THAT IS. IS THAT BECAUSE DENTON IS A FULL SERVICE CITY AND HAS A LOT OF NON NON TAXABLE PROPERTY. JUST GIVE ME GIVE ME KIND OF A AN ELEVATOR TALK ABOUT WHY THAT IS A COUPLE OF DIFFERENT THINGS. SO THE $0.11 FOR LEWISVILLE. THE $0.34 FOR THE GENERAL FUND. AND DENTON.

THAT'S ONLY GENERAL GOVERNMENT THAT DOESN'T INCLUDE THE UTILITIES. SO THAT'S A THAT'S PAID THROUGH THROUGH RATES. FOR US WE HAVE A LOT OF INFRASTRUCTURE NEEDS. WE'VE YOU SEE IT WITH THE ROADS. WE'VE HAD SEVERAL BOND PROGRAMS RECENTLY. SO WE'RE STILL PAYING FOR THE 2014, THE 2019 BOND PROGRAM, OBVIOUSLY BRINGING ON THE 23 BOND PROGRAM GOING FORWARD. ALL OF THAT IS TAKEN INTO ACCOUNT WHEN WE'RE LOOKING AT THE DEBT SERVICE RATE. SO WE HAVE A LOT OF INTERESTING WE HAVE THE GROWTH, BUT AT THE SAME TIME, WE HAVE A VERY, OLDER CORE THAT WE'RE STILL TRYING TO MAINTAIN AND REPLACE INFRASTRUCTURE. OKAY AND TO THAT EXAMPLE, LEWISVILLE

[00:40:04]

BUT WHEN YOU VOTE ON A BOND ISSUE, IT'S NOT A GUARANTEE THAT ALL THOSE THINGS WILL HAPPEN. IT IS YOU'RE MAKING BEST FAITH EFFORTS TO ACHIEVE THOSE THINGS. WELL, THE CITY OF DENTON WENT A STEP FURTHER AND EXECUTED ON THOSE THINGS. EVEN THOUGH WE DIDN'T HAVE MONEY FOR THEY WERE THEY WEREN'T PROPERLY SCOPED OR ENVIRONMENT CHANGED, ETC. AND SO WE HAD TO GO BACK AND GET MORE MONEY TO COMPLETE WHAT WE COMMITTED VERSUS WALKING AWAY FROM IT SAYING, HEY, WE RAN OUT OF MONEY, SORRY, WE'LL GET IT THE NEXT TIME WE WENT AND DID DID THE RIGHT THING TO TRY TO GO BACK AND BACKFILL AND THAT THAT THEN PUT US BEHIND A LITTLE BIT. BUT I'LL LET YOU FIX THAT. SURE.

SO FOR THE 2014 BOND PROGRAM, BECAUSE WE DIDN'T EXECUTE AS QUICKLY AS WE SHOULD HAVE, THE COST WENT UP. AND SO THE PROJECTS CHANGED AND WE HAD TO COME BACK TO COUNCIL SEVERAL TIMES AND ASK FOR MORE MONEY TO DO SOME OF THE BASIC PROJECTS THAT WE HAD ALREADY COMMITTED TO, SO WHEN YOU EXTEND THE LIFE OF THAT BOND PROGRAM, IT JUST BECOMES MORE EXPENSIVE OVER TIME, WHICH IS WHY WE WERE VERY SPECIFIC IN 2019 BOND PROGRAM OF TRYING TO SHORTEN THAT LENGTH, BUT ALSO LOOK AT MORE, THE COMPLETE STREET APPROACH. SO LOOKING AT EVERYTHING WHILE WE'RE THERE NOW, WE DIDN'T PREDICT COVID HAPPENING IN 2020 AND CHANGING THAT THAT COST, BUT LIKE WE TALKED ABOUT IN THE 23 BOND PROGRAM, WE TRIED VERY INTENTIONALLY TO BUILD IN A LOT OF CONTINGENCY AND LOOK AT THE WHAT WE WERE PREDICTING FOR INFLATION. I MEAN, BUT YOU'VE ALREADY SEEN IT IN 2019. WE'VE ALREADY HAD TO ASK FOR MORE ADDITIONAL FUNDING TO COMPLETE THE STREETS. AND, YOU KNOW, DEPENDING ON WHAT HAPPENS IN THE MARKETPLACE, IT COULD BE THE SAME FOR 2023. OKAY. YEAH REPRESENTATIVE DISTRICT SIX. THANK YOU. COUNCILPERSON JESTER, AM I ALSO CORRECT THAT ONE FACTOR THAT PLAYS INTO OUR RATES IS THE FACT THAT, SAY, LEWISVILLE DOESN'T HAVE AS MUCH, UNTAXABLE LAND OR TAX EXEMPT LAND. I MEAN, WE DO HAVE AN UNUSUAL AMOUNT. WHEN YOU LOOK AT THE STATE SCHOOL, FEMA, YOU AND TX, AND THEY CONTINUE TO ACQUIRE MORE PROPERTY AS NEEDED, THAT THEN TAKES IT OFF OF OUR TAX ROLLS. SO OUR ABILITY TO COLLECT, PERIOD, HAS TO BE INCREASED IN ORDER TO MAINTAIN OUR SERVICES AND PROVIDE INFRASTRUCTURE. IS THAT FAIR TO SAY? YOU'RE ABSOLUTELY CORRECT. I MEAN, WE'VE NEVER DONE A SIDE BY SIDE COMPARISON OF THE AMOUNT, BUT JUST KNOWING WHAT WE KNOW ABOUT DENTON, THAT'S ABSOLUTELY CORRECT. ALL RIGHT. REPRESENTATIVE DISTRICT FIVE. AND TWO. WHAT WERE THOSE COMPARABLE CITIES, THAT YOU WERE TALKING ABOUT WITH A MUCH LOWER DEBT SERVICE THAN WE HAVE LEWISVILLE AND MISSED THOSE OTHERS, I KNOW CARROLLTON. AND I BELIEVE MCKINNEY AS WELL, SO THOSE LOWER TIER CITIES THAT YOU SEE ON THE, ON THE FAR RIGHT, THEY DON'T THEY HAVEN'T HAD THE INFRASTRUCTURE CHALLENGES. THEY HAVEN'T HAD THE DEBT. AND SO IT'S JUST IT'S NOT ALWAYS AN APPLES TO APPLES COMPARISON. AS MUCH AS WE TRY TO MAKE IT ONE. THANK YOU. REPRESENTATIVE DISTRICT TWO. THANK YOU. THE THIS THIS HAS COME UP IN THE NON TAXABLE PROPERTIES AND THE AMOUNT OF THAT WE HAVE AND THEIR IMPACT HAS COME UP IN EVERY BUDGET DISCUSSION I'VE BEEN INVOLVED WITH. BUT I DON'T KNOW THAT WE'VE INCLUDED METRICS AND GRAPHICS FOR THAT IS THERE IS THERE. I MEAN YOU KNOW, WE KNOW HOW MUCH, LAND LOUIS, BILL AND CARROLLTON AND ON THE THESE OTHER SEMI COMPARABLES HAVE, THAT ARE IN THAT ARE TAXABLE NONTAXABLE THAT'S ON THEIR BOOKS JUST LIKE IT'S ON OUR BOOKS. CAN CAN WE GET IT DOESN'T HAVE TO BE A SUPER DETAILED ASSESSMENT, BUT CAN WE GET THAT NUMBER SO THAT WHEN WE MAKE THIS ARGUMENT WE CAN SHOW TO THE PUBLIC, YEAH, IT REALLY IS X PERCENT OR Y PERCENT OR WHATEVER YOU KNOW, THIS IS THE THIS IS THE BACK PRESSURE AGAINST US SO THAT WE HAVE SOMETHING TO PROVIDE FOR OUR DISCUSSION AND TO THE PUBLIC.

SURE. ABSOLUTELY. WE CAN PROVIDE THAT. ALL RIGHT. THANK REPRESENTATIVE FROM DISTRICT FOUR. THANK YOU. THERE AND I AND I DON'T KNOW THE NAME I USED TO KNOW THE NAME. THERE IS A

[00:45:04]

YEAH COLLECTIONS. CORRECT. THANK YOU. REPRESENTATIVE FROM DISTRICT THREE. I THINK THIS MAY HAVE BEEN WHAT YOU ALREADY ASKED FOR. SO I'M JUST CHECKING. BUT IT'S WHAT I, WHAT I WOULD LIKE TO SEE IS THIS SAME SLIDE. BUT PREFERABLY MEDIAN. BUT I THINK THAT'S HARD TO GET. I'LL TAKE I'LL TAKE AVERAGE TOTAL CITY PROPERTY TAX BILL FOR THE SAME SET. WHERE DO WE STACK UP VERSUS FOR SLIDE 21 FOR JUST THE CITY RATES. CITY RATE. YEP. THANKS OKAY. THANK YOU. THANK YOU. CAN I GET BACK ON TRACK WITH WHERE WE WERE OKAY. SALES TAX. SO AS I MENTIONED WE'RE ESTIMATING A 5.26% INCREASE OVER THE CURRENT YEAR'S ESTIMATE, IN THE LAST COUPLE OF YEARS WE SAW REVENUE COLLECTION FROM SALES TAX IN THE GENERAL FUND AT 55.9 MILLION 22, 23, 23, 24. WE'RE ESTIMATING 57.5 MILLION. AND IN 24, 25, WE ARE ESTIMATING 60.8. I THINK THAT'S WHERE WE WERE. OKAY SO OF NOTE HERE IS JUST AGAIN, WE'RE SEEING THAT SAME TREND THAT WE'VE BEEN TALKING ABOUT AS TO WHEN THINGS SPIKED. WE'RE SEEING COLLECTIONS AT ABOUT 48 MILLION OR SO. AND THEN WE SPIKE AND CONTINUE UP. AND SOME OF THAT WAS THAT FEDERAL FUNDING THAT WENT INTO THE ECONOMY FOR THINGS LIKE ASSISTANCE WITH HOUSING, SO JUST TO KEEP IN MIND, ALL OF OUR REVENUE SOURCES ARE SHOWING US THE SAME TREND. ONTO THE GENERAL FUND. SO THIS IS A LOOK AT THE REVENUE ANTICIPATED FOR THE FIVE YEAR FORECAST FOR THE GENERAL FUND, THE FIRST COLUMN THERE IS THE 2324 BUDGET. AND THEN WE HAVE THE 2425 PROPOSED, AND THEN OUR PROJECTED YEARS FOLLOW ON FROM THERE, THIS PROPOSED GENERAL FUND BUDGET IS ABOUT 10% OVER THE PRIOR YEAR'S BUDGET. WE'VE SEEN INCREASES, THROUGHOUT SOME OF OUR REVENUES. WE'RE GOING TO SEE THAT INCREASE IN PROPERTY TAX, INCREASE IN SALES TAX, WE HAVE SEEN SOME DECLINES IN, PERMITTING AND THINGS LIKE THAT. THAT HAS TO DO WITH THE TIMING OF CONSTRUCTION. YOU PULL A PERMIT LONG BEFORE YOU OPEN YOUR DOORS. SO ANY QUESTIONS HERE? ANY QUESTIONS? OKAY. OKAY AND THIS IS THAT SAME LOOK AT THE GENERAL FUND EXPENDITURES OVER FIVE YEARS. AGAIN, WE HAVE THE SAME COLUMNS. WHAT YOU'LL NOTICE AT THE BOTTOM OF THIS

[00:50:01]

AND THEN HERE WE'VE LISTED THE CHANGE IN FUND BALANCE, OF COURSE, ASSUMING THAT EVERYTHING FIVE YEARS DOWN THE LINE HAPPENS AS WE THINK IT WILL TODAY. IT'S THE LAST FIVE YEARS HAS TOLD US IT'S REALLY NOT POSSIBLE. OKAY. SO TO SUMMARIZE SOME OF THE THINGS WE'VE ALREADY TALKED ABOUT IN THE GENERAL FUND, WE ARE PROPOSING A 3% COLA, A PROPOSED 2.5% MERIT INCREASE.

THAT IS POSSIBLE FOR EMPLOYEES AN O AND M REDUCTION ON THE TAX RATE OF $0.02, A TOTAL TAX RATE OF 0.585420 PER $100 OF ASSESSED VALUATION. WE HAVE INCLUDED BASELINE REQUESTS OF 1.2 MILLION AND SUPPLEMENTALS OF 5.1. WE'RE FOCUSING ON PUBLIC SAFETY AND CONTINUATION OF BEING AN EMPLOYER OF CHOICE. PROPOSED BUDGET AT A TWO CENT REDUCTION INCLUDES THE SUPPLEMENTALS ON THE FOLLOWING SLIDES. SO WE'RE GOING TO START TALKING NOW ABOUT THOSE SUPPLEMENTALS. THIS SLIDE STARTS THE LIST OF THE PROPOSED SUPPLEMENTALS THAT ARE BEING RECOMMENDED FOR FUNDING HERE. AS WE DISCUSSED, WE ON THE SECOND LINE SEE OUR COLA AND A POSSIBLE 2.5% MERIT. THE LINE ABOVE IS THE SALARY EQUITY ADJUSTMENTS. IF YOU'LL RECALL, LAST YEAR, ONE OF THE THINGS THAT WAS TALKED ABOUT DURING THE COMPENSATION STUDY, I BELIEVE, IS THAT WE NEEDED TO MAINTAIN EQUITY. AND WE HAD SOME PLACES WE REALLY NEEDED TO LOOK AT IN FUTURE YEARS. AND SO THAT FUNDS WHAT WE'VE ANTICIPATED THAT NEED WILL BE GOING INTO 24, 25. AND THEN WE HAVE FUNDING FOR POLICE, WE HAVE FUNDING FOR A K9 SERGEANT, TWO K9 OFFICERS, TWO POLICE OFFICERS, A POLICE QUARTERMASTER, A PUBLIC SAFETY DISPATCHER, AND A CIVILIAN WARRANT CLERK. CONTINUING THE LIST, WE HAVE A REQUEST FROM FIRE THAT IS BEING RECOMMENDED. THE FOR TWO FIREFIGHTERS AND THE RECLASSIFICATIONS NEEDED FOR ENGINES, NINE FOR ENGINE NINE AND LADDER TRUCK THREE. IN ANIMAL SERVICES, WE HAVE TWO RECOMMENDATIONS TWO ANIMAL CARE TECHNICIANS AND A BEHAVIOR AND ENRICHMENT PLACEMENT COORDINATOR IN DEVELOPMENT SERVICES. WE HAVE A RECOMMENDATION FOR RISK BASED INSPECTION PROGRAM AT 115,000 AND A SMALL AREA PLAN IMPLEMENTATION IN PARKS AND REC, A SEASONAL SPECIAL EVENTS COORDINATOR AND PARKS PLANNER, AND IN LEGAL AND ATTORNEY. SO HERE AT THE END OF THE SLIDE, YOU SEE THAT WE HAVE HIGHLIGHTED SEVERAL OF THESE, SO IN THE DEVELOPMENT SERVICES RISK BASED INSPECTION PROGRAM, THE POSITION SALARY IS RECOVERED BY PROGRAM REVENUES IN THE LET'S SEE, IN PARKS WE HAVE COVERAGE FOR EVENT REVENUES. AND IN PARKS AND REC WE ALSO HAVE, A PORTION OF THE SALARY THAT'S INCLUDED IN PROJECT BUDGETS. SO WHAT WHAT WE ARE SEEING HERE IS THE DIFFERENCE BETWEEN WHAT THE CITY MANAGER IS RECOMMENDING. SO THAT'S THIS IS THE FULL COST. AND THEN THIS IS THE NET COST IF THAT MAKES SENSE. SO IF THERE ARE PROGRAM REVENUES THAT WE'RE OFFSETTING IT, WE'RE SHOWING THAT HERE, OF NOTE, REVENUES IN THE GENERAL FUND ARE SHARED, BUT IN PARTICULAR TO THESE ITEMS, IF YOU LOOKED AT IT THAT WAY, THIS IS WHAT IT WOULD BE. OKAY. REPRESENTATIVE DISTRICT SIX. HI COUNCILPERSON JESTER, A QUESTION ON THE, HR ON THE LAST SLIDE. WHEN WE'RE TALKING ABOUT SALARY EQUITY ADJUSTMENTS, IS THAT, FOR EXAMPLE, UPON REVIEW, IT SEEMED THAT THERE WERE PEOPLE DOING THE SAME JOB BUT WITH DIFFERENT SALARIES, EVEN THOUGH THEY HAD BEEN HERE, THE CERTAIN, YOU KNOW, A CERTAIN LEVEL OF SENIORITY WAS SIMILAR. IS THAT JUST BALANCING THAT OUT OR I JUST, I HADN'T SEEN THAT BEFORE.

WHAT DOES THAT MEAN? IT'S MAINTAINING THE BENCHMARKS THAT HR HAS SET AS TO WHERE SALARIES NEED TO BE BASED ON POSITION CLASSIFICATION. AND MEGAN MAY WANT TO ADD ADDITIONAL DETAIL.

JUST KIND OF A GLOBAL. YEAH LEVELING. IS THAT FAIR? IT IS. OKAY THANK YOU. THAT WAS THE ONLY ONE THAT I WAS JUST WANTING TO KNOW. NO WORRIES. MEGAN GILBREATH, DIRECTOR OF HUMAN RESOURCES. SO LAST YEAR WHEN WE DID THE COMPENSATION STUDY, THAT WAS THE FIRST TIME THAT A

[00:55:01]

AND SO WE CONTINUE TO EVALUATE THIS WITH THE WITH THE GOAL OF TOUCHING THE ENTIRE ORGANIZATION OVER THREE YEARS. RIGHT. THE ORGANIZATION IS MADE UP OF PEOPLE. AND SO THAT'S WHAT'S MOST IMPORTANT. THANK YOU THANK YOU THANK YOU. REPRESENTATIVE DISTRICT TWO. SO IN THE IN THE BUDGET FOR THE 2.5% MERIT, YOU KNOW, ARE WE BUDGETING AS IF THE ENTIRE STAFF IS GETTING THE 2.5% MERIT? WE BUDGET IN TOTAL. HOWEVER, THERE'S A PROCESS THAT HR HAS IN PLACE DUE TO THE EVALUATIONS THAT WILL BE COMPLETED THAT WILL DETERMINE EACH INDIVIDUAL EMPLOYEES PERCENT. SO WE BUDGET ON AVERAGE FOR 2.5% AND HR, WORKS WITH FINANCE TO SHOW KIND OF PREVIOUS HOW THAT HAS AVERAGED OUT OVER THE LAST COUPLE OF YEARS WHEN THERE IS A MERIT INCREASE. AND THAT'S KIND OF HOW WE HOW WE EVALUATE IN A HYPOTHETICAL, IT MIGHT BE 80% OF STAFF THAT GET A MEAN OF 2.5% KIND OF THING, WHEREAS THE ACTUAL NUMBER PER PERSON WILL VARY RIGHT A LITTLE BIT. OKAY SO IF WE ANTICIPATE SO LET ME COME BACK TO THAT EXACT POINT. DO WE DO WE HAVE AN ESTIMATE FOR THE PERCENTAGE OF STAFF THAT WE ANTICIPATE GETTING SOME LEVEL OF MERIT THAT AVERAGES OUT TO 2.5? MEGAN, DO YOU HAVE THAT INFORMATION? IS IT 80%, 60%, 90%? SO YES, IT WOULD BE ROUGHLY ABOUT 80%, I WOULD SAY. I MEAN, THE LARGE PORTION OF OUR ORGANIZATION, WHAT WE DO WHEN WE DO PERFORMANCE EVALUATIONS, IT'S A FOUR TIER STRUCTURE. SO THE FIRST TWO WHAT ONE WOULD BE UNSATISFACTORY PERFORMANCE. AND THEN THERE'S NEED IMPROVEMENT. THOSE TWO DON'T RECEIVE ANY MERIT INCREASE OBVIOUSLY BECAUSE THEY'RE NOT MEETING EXPECTATIONS. THEN ONCE YOU GET TO THAT THIRD TIER IT'S MEETS EXPECTATIONS. IT'S A 2% ADJUSTMENT. AND THEN 2.5 IS EXCEEDS EXPECTATIONS. I WOULD SAY 75 TO 80% OF OUR ORGANIZATION FALLS ABOVE THE MIDDLE CUTOFF, AND WOULD EXPECT TO SEE SOME FORM OF INCREASE. OKAY AND I'LL GIVE YOU CONTEXT FOR THESE. AND I'VE ASKED THAT QUESTION IF WE IF WE EXPECT, THE DOMINANT YOU KNOW, AMOUNT OF OUR, OUR OF OUR STAFF TO, TO NO PUN INTENDED MERIT A MERIT. THEN IS IT WHAT WHAT IS THE ADVANTAGE OF NOT JUST HAVING A COLA OF 5.5 OR IF THAT EXTRA 10% BECOMES AN ONEROUS BURDEN, JUST SAY 5% OF COLA, YOU KNOW, WHAT'S THE WHAT'S THE OVER UNDER? WHAT'S THE ADVANTAGE OF. BECAUSE ALL OF THESE ARE ABOVE WHAT WAS IT 7.69 ACTUAL COST OF LIVING IN DENTON COUNTY. SO WE'RE 222.7 UNDER.

WHAT'S THE ACTUAL MERIT OF HAVING HALF OF THE COST OF LIVING AND THEN SORT OF INCENTIVIZING TO. IT'S JUST THAT THOUGH, IT'S RECOGNIZING YOUR GOOD PERFORMERS. I MEAN, YOU WANT TO MAKE SURE THAT YOU'RE INCENTIVIZING THOSE THAT ARE PERFORMING WELL, ENCOURAGING THOSE THAT ARE, YOU KNOW, AT LEAST MEETING EXPECTATIONS TO DO A LITTLE BIT BETTER. AND THEN, YOU KNOW, DRAWING A LITTLE BIT OF ATTENTION TO THOSE THAT AREN'T THAT ARE UNDERPERFORMING AND ADDRESSING THOSE CONCERNS APPROPRIATELY. SO YOU DON'T WANT TO JUST GIVE IT TO EVERYBODY, BECAUSE THEN YOU'VE GOT THOSE THAT ARE PERFORMING REALLY HIGH THAT ARE NOT BEING RECOGNIZED FOR THEIR PERFORMANCE. AND THE LAST COUPLE OF YEARS, WE HAVE NOT HAD THE OPPORTUNITY TO DO MERIT. WE'VE ONLY DONE COLA. SO THIS IS A LITTLE BIT OF A SHIFT TO, I THINK WE DID A 1.5% LAST YEAR, I BELIEVE. SO, BUT THE TWO YEARS BEFORE THAT THERE WAS ONLY A COST OF LIVING ADJUSTMENT.

THERE WERE NO MERIT INCREASES. OKAY. ANY OTHER QUESTIONS? WELL, I DID HAVE ONE MORE. IF YOU WOULDN'T MIND, MR. MAYOR, I APOLOGIZE. GO AHEAD. ON THE, I KNOW THAT IN THE IN THE BACKUP MATERIAL FOR THE ANIMAL TECH, POSITIONS. I THINK THAT'S THE NEXT SLIDE, OR THE PREVIOUS ONE, THAT WE HAD SUCH A DEMAND ON THE SHELTER THAT WE'RE SORT OF. WE NEED THOSE ADDITIONAL POSITIONS.

THE JUSTIFICATION WAS WE'RE JUST NOT SERVICING THE ANIMALS AT THE APPROPRIATE LEVELS. ONE OF THOSE COMPONENTS, THAT OF THE ANIMAL SERVICE THAT THE CITY PROVIDES IS, IS THE ANIMAL CARE OFFICERS

[01:00:01]

REPRESENTATIVE DISTRICT ONE. THESE SALARIES ARE THEY INCLUDE ALL THE BENEFITS, ADDITIONAL BENEFITS. OR IS THIS JUST THAT WE'RE LOOKING AT HERE? I BELIEVE ALL THE BENEFITS ARE INCLUDED IN THESE COSTS. SO IT'S FULLY LOADED. ALSO, THE K-9 OFFICER POLICE LOOKING AT K-9 OFFICER, THEY NEED TWO K-9 OFFICERS. AS ONE OF THOSE OFFICERS, THE ACTUAL K-9 OR, AND K-9 GET BENEFITS OR DO WE I MEAN, HOW DOES THAT WORK? WE HAVE A K-9. THIS IS A K-9. HAVE BENEFITS.

CHIEF ROBLEDO, HAPPY TO ANSWER THAT QUESTION. HOW DOES ALL OF THAT? I MEAN, IT'S A LEGITIMATE QUESTION. THERE'S A LOT OF MONEY RIGHT THERE. JESSICA ROBLEDO, INTERIM POLICE CHIEF. GOOD QUESTION. THE K-9 OFFICERS WILL HOUSE AND WILL TRAIN WITH THE K-9. SO WE HAVE TO PURCHASE THE K-9. YES, MA'AM. AND THEN WITH THAT COMES ALL KINDS OF COSTS. THE COLLARS, THE TRAINING. THEY WILL ALL BE HOUSED AT THE SOUTH SUBSTATION. AND, I COULD GO ON AND ON, BUT. YEAH, WHAT ELSE CAN I. WELL, I MEAN, YOU KNOW, THAT'S THAT THAT WAS JUST, A CURIOSITY QUESTION BECAUSE I SEE HERE BELOW THAT, YOU KNOW, YOU NEED TO ADDITIONAL YOU'RE ASKING FOR TWO, ADDITIONAL OFFICERS AND THEN, YOU KNOW, YOU GOT YOUR QUARTERMASTER AND PUBLIC SAFETY DISPATCHERS, ALL OF THAT. I KNOW ALL COMES TOGETHER. YES, MA'AM. BUT I WAS JUST CURIOUS ABOUT K-9 OFFICER IS ONE OF THOSE OFFICERS THE K-9 OR BOTH OF THOSE? YOU KNOW, POSITIONS IS A TOTAL OF FIVE. TOTAL OF FIVE. YOU'VE GOT THE SERGEANT. YOU'VE GOT TWO K-9 OFFICERS. OKAY AND IN THE PATROL OFFICERS OKAY. THE TWO OFFICERS ARE GOING TO BE PATROL OFFICERS. SO THE CANINES ARE LIVING WITH THE OFFICER? YES MA'AM. AND THEY TAKE HOME THAT'S THEIR PIT. THAT'S THEIR THAT'S THEIR PARTNER. THAT'S THEIR PARTNER.

YES, MA'AM. PARTNER BUT WHEN WE PURCHASE THE CANINES, WHAT'S THE PURCHASE COST? WE'RE ESTIMATING 20,000 PER. PER CANINE. OH OKAY. YES, MA'AM. AND WITH THAT COMES, A SLAB THAT WE'RE GOING TO HAVE TO POUR WHATEVER OFFICER INTERVIEWS FOR THIS POSITION. WE HAVE TO GO OUT TO THEIR HOME. WE HAVE TO POUR SLAB. WE, WE HAVE TO MAKE SURE THEY, THEY HAVE THE RIGHT CONTAINMENT. IT INCLUDES VET BILLS. IT INCLUDES TRAINING. IT INCLUDES BALLISTIC, HARNESS AND EVERYTHING THAT THE CANINES BECAUSE SOMETIMES WE HAVE SUSPECTS THAT WILL TRY TO HARM OUR CANINES. OUR CANINES ARE CONSIDERED OFFICERS AS WELL, BUT THEY'RE NOT TAKING THE POSITION OF THAT. THE TWO OFFICERS I KNOW. SO SO DO WE. DO WE HAVE ANY CANINES RIGHT NOW IN OUR DEPARTMENT? NO MA'AM. THE LAST, OUR K9 RETIRED MARCH OF 2022, AND THEY WERE IN SERVICE FOR FIVE YEARS, AND THEY DID A TREMENDOUS AMOUNT OF WORK FOR US, I WASN'T HERE, BUT I HAD THE PRIVILEGE OF KNOWING THAT THEY WERE ABLE TO COMMUNICATE AND CONNECT WITH THE COMMUNITY. THEY DID OVER 100 PRESENTATIONS IN THE COMMUNITY AND WHAT THAT DOES IS THAT BONDS AT SCHOOLS, IT SHOWS CHILDREN THAT MAY BE IN A BAD SITUATION THAT, HEY, THE POLICE CAN ENGAGE WITH YOU. AND WE HAVE A CANINE PARTNER AND A LOT OF THE TIMES THAT BRIDGES A GAP WITH THEM, IT ALSO ESTABLISHES PARTNERSHIPS WITH OUTSIDE AGENCIES BECAUSE RIGHT NOW, OUR WAITING, TIME WHEN WE REQUEST A K-9 FROM ANOTHER AGENCY IS LIKE AN HOUR OR LONGER. AND, OF COURSE, THEY HAVE THEIR OWN NEEDS AS WELL.

[01:05:06]

[01:10:05]

JUST SO I'M CURIOUS, JUST SO I KNOW I'M CURIOUS IN THE FUTURE, HOW MANY MORE CIVILIAN POSITIONS WOULD YOU ANTICIPATE NEEDING IN ORDER TO BECOME FULLY STAFFED? WE ARE IN THE PROCESS OF WORKING WITH HR TO EVALUATE THE ADMINISTRATIVE STAFF NEEDS, SO WE'RE ACTUALLY IN DISCUSSIONS IN THAT RIGHT NOW. OKAY THANK YOU MA'AM. YES, SIR. THANK YOU. MAYOR ALL RIGHT. AND YOU DON'T HAVE TO SPEAK TO IT NOW. JUST COULD SOMEONE FOLLOW UP WITH ME WITH RESPECT TO THE ANIMAL SERVICES SIDE OF THINGS, I KNOW WE'RE TALKING TO THE COUNTY RECOUP, AND I JUST WANT TO UNDERSTAND IF WE'VE IF WE'VE NEGOTIATED IN A HIGHER RATE ET CETERA. ET CETERA. BUT I MEAN, NOT NOW. JUST. OKAY. YES, WE CAN FOLLOW UP. OKAY. RETURNING TO OUR PRESENTATION, THE NEXT SLIDE, THIS SLIDE IS SHOWING THE CITY COUNCIL REQUESTS THAT ARE INCLUDED IN THIS BUDGET. WE HAVE THE INCREASE TO CASH SPONSORSHIPS, THE PILOT PROGRAM FOR HYDRATION STATIONS, TWO POLICE E-BIKES AND RESTROOM SIGNAGE AND PRODUCTS. OKAY. ANY QUESTIONS? OKAY REPRESENTATIVE DISTRICT THREE. YEAH. IT'S, IT'S MORE TICKING AND TYING THAN I CAN DO IN MY HEAD, BUT, HAVE HAVE YOU OR HAS STAFF TAKEN THE, THE PRIORITIES LIST THAT WE DEVELOPED COLLECTIVELY, MOSTLY CITY LED OR, YOU KNOW, STAFF LED AND JUST COMPARED THIS TO THE BUDGET TO SAY HOW MUCH OF THIS IS FUNDED, HOW MUCH OF THIS IS NOT FUNDED. YOU KNOW, WHAT CAME OUT OF OUR OF OUR RETREAT, WE HAVE DONE THAT, I THINK THE A COUPLE OF THINGS IS THE TIMING OF SOME OF THE PRIORITIES. SO, FOR INSTANCE, I'M TALKING ABOUT THE TREE CODE. WE WERE REALLY TRYING TO FOCUS ON COMPLETING THE CURRENT SMALL AREA PLAN. BEFORE WE STARTED THE TREE CODE. SO WE MAY BE COMING BACK IN THE NEXT BUDGET ASKING FOR ADDITIONAL MONEY FOR THAT. BUT A LOT OF IT IS TIMING. I KNOW THAT WE'RE GOING TO TALK ABOUT, OUR RESOURCES DEDICATED TO HOMELESSNESS, WE DON'T HAVE ANYTHING IN THIS BUDGET, BUT THAT'S GOING TO COME AT A LATER DATE. SO WE HAVE WE HAVE TRIED TO EVALUATE THOSE PRIORITIES AND MAKE SURE THAT WE'RE IN ALIGNMENT WITH OUR BUDGET REQUESTS. IS THAT A POSSIBLE FOLLOW UP? I MEAN, JUST, YOU KNOW, HERE'S THE LIST. AND THEN IN THE CURRENT BUDGET PLAN, YOU KNOW, FUTURE OR WE COULD DO WE JUST DROPPED IT, YOU KNOW, MAYBE THERE'S NOTHING. LET'S HOPE. OKAY. OKAY. SO I'M GOING TO CIRCLE US BACK FOR A MINUTE TO PROPERTY TAXES. SO THIS IS LOOKING AT WHERE WE ARE RIGHT NOW. WE'VE HAD THIS DISCUSSION A BIT ABOUT THE CHANGES IN THE TAX BILL. THEN WE'RE GOING TO LOOK AT IF THIS COUNCIL CHOSE TO INCREASE THE PROPERTY TAX RATE BY A HALF A CENT, WHAT WOULD THAT LOOK LIKE? AND BY $0.01, WHAT WOULD THAT LOOK LIKE. SO THE TOTAL REVENUE THAT WOULD BE COLLECTED ON HALF A CENT IS 964,000, AND ON $0.01 IS 1.9 MILLION. I WANT TO BE CLEAR, HOWEVER, WHILE WE'RE SHOWING THIS, THIS IS NOT THE RECOMMENDATION. THE RECOMMENDATION IS THE .585420.

SO IN THE EVENT THAT THE COUNCIL CHOSE TO DO A HALF CENT INCREASE, ONE OF THE OPTIONS MIGHT BE LOOKING AT FUNDING THREE POLICE OFFICERS AND THEIR VEHICLES. THAT WOULD TOTAL ABOUT $898,000 ON THE GENERAL FUND. AGAIN NOT BEING RECOMMENDED JUST FOR ILLUSTRATIVE PURPOSES, SO THAT YOU HAVE AN IDEA OF IF YOU WERE TO CHANGE THE RATE WHERE YOU WOULD LAND. WITH $0.01 YOU COULD DO THAT. THE ITEMS LISTED HERE. SO SOME OF THESE ARE THE SUPPLEMENTALS THAT DIDN'T MAKE

[01:15:01]

ANYTHING ELSE ON THE GENERAL FUND BEFORE WE MOVE OVER INTO THE ENTERPRISE FUNDS. THE UTILITIES REPRESENTATIVE FROM DISTRICT TWO. FOR NOT NOT THE NOT THE HALF CENT AND $0.01. LET ME MAKE SURE I UNDERSTAND THAT ALL THE RECOMMENDED OR ALL THE INCLUDED STAFFING POSITIONS ACROSS THE VARIOUS DEPARTMENTS WERE, THAT THE BUDGETS FOR THOSE WERE FULLY EQUIPPED. SO FOR THE ANIMAL TECH, WHATEVER ANIMAL TECH FOR THE FIRE CARS AND EVERYTHING, EVERY ALL THE EQUIPMENT NEEDS UNIFORM NEEDS HARD HATS, STEEL TOED SHOES, BELTS, EVERYTHING IS BUDGETED ALONG WITH THEIR THEIR SALARY REQUEST. OKAY. ALL RIGHT. THANK YOU. THANK YOU, MR. MAYOR. ANY OTHER QUESTIONS? REPRESENTATIVE FROM DISTRICT THREE. AND THEN ONE. YEAH. I DON'T KNOW IF WE'RE GOING TO NECESSARILY MAKE THESE CALLS TODAY. I MEAN, I'M NOT SURE, BUT IF THERE IS ANOTHER STEP LIKE HEARING THE FOLLOW UPS THAT WE'VE ASKED FOR TODAY BEFORE. YES. DECISIONS. YES. WE HAVE ANOTHER MEETING TO FOLLOW UP ON TODAY. GREAT. YEAH. I THINK IT WOULD BE HELPFUL AS WE EVALUATE, YOU KNOW, ANY INCREMENTS TO THE PROPOSAL TO SEE THEM IN TERMS OF DOLLARS ON THE AVERAGE TAX BILL, BECAUSE IF YOU HAVE $1,000 HOUSE, YOU'LL PAY A PENNY, RIGHT? BUT NOBODY'S GOT $1,000 HOUSE, RIGHT. THANKS REPRESENTATIVE. DISTRICT ONE I KNOW I'VE SAID IN THESE BUDGET MEETINGS FOR THE LAST, THIS IS MY FOURTH YEAR, AND I UNDERSTOOD THAT WE WERE GOING TO TRY TO, EMPLOY FIVE ADDITIONAL OFFICERS PER YEAR. YOU ALL REMEMBER HEARING THAT AND SO NOW I'M LOOKING HERE AND IN RIGHT NOW IT SEEMS LIKE IT'S THE NUMBER IS THREE. WHAT AM I WHAT AM I MISSING HERE? THERE ARE FIVE LISTED THERE. THERE'S FIVE. THERE ARE FIVE. OKAY. IT'S JUST BROKEN OUT HERE. YES SERGEANT. TWO OFFICERS, TWO CANINE OFFICERS. AND THEN ALSO A TWO ADDITIONAL OFFICERS. OKAY. ALL RIGHT. THERE IS FIVE. AND THAT CAME FROM A STUDY THAT WAS DONE, I BELIEVE, IN 2019. AND WE COMMITTED TO DOING FIVE OFFICERS PER YEAR. SO WE'RE SUCCESSFUL IN GETTING ALL OF THOSE NEXT YEAR. WE CAN ANTICIPATE AN ADDITIONAL FIVE. WILL THEY BE, YOU KNOW, PATROL OR ARE WE STILL KIND OF LOOKING AT THESE SPECIFIED AREAS IN OUR LAW ENFORCEMENT? I THINK IT'LL BE EVALUATED OVER THIS NEXT YEAR. AND THEN DEPENDING ON, YOU KNOW, OPERATIONS, THEY'LL THEY'LL MAKE A RECOMMENDATION FOR WHICH SARAH HENSLEY, CITY MANAGER I JUST HAD TO DO THAT. THAT THE RECOMMENDATION CAME FROM THE STUDY THE MATRIX STUDY. AND SO WE'RE AT THE AT THIS END, I JUST MET WITH THE TWO ASSOCIATION REPS FROM THE POLICE DEPARTMENT YESTERDAY, AND WE'RE GOING TO START AGAIN, BACK INTO A DISCUSSIONS ABOUT THE NEXT FIVE YEARS. AND WHERE WE GO WITH THE POLICE. SO, THIS IS SORT OF TO THE END OF IT, BUT THEN WE PROBABLY HAVE SOMETHING ELSE COMING FORWARD OVER THE NEXT FIVE YEARS, SO THAT'LL BE GOOD.

THANK YOU. ALL RIGHT. ANY OTHER QUESTIONS? ALL RIGHT. I'M SORRY. OH. REPRESENTATIVE TO SIX. HI, COUNCILPERSON JESTER. SORRY, I WAS OUT FOR JUST A MOMENT, ON THE HYDRATION STATIONS, HOW MANY AND WHERE ARE THEY BEING PROPOSED? I'M GOING TO TURN THAT ONE OVER TO PARKS. GARY IS ON HIS WAY UP. THANK YOU. SO MUCH. YOU'RE WELCOME. THANK YOU. I APPRECIATE IT. YEAH. RIGHT NOW WE'RE. THERE'S THREE WITH A LITTLE WIGGLE ROOM PENDING ON COSTS, THAT WE'VE PLANNED, AND WE PROBABLY WOULD PUT THOSE IN THE MOST HEAVILY TRAFFICKED AREAS PENDING APPROVAL, SO PROBABLY QUAKERTOWN, SOME OF OUR HEAVIER PARKS. AND FORGIVE ME, I WAS NOT ON COUNCIL WHEN THIS WAS INITIALLY, BROUGHT UP THESE STATIONS, ARE THEY SIMILAR TO WHAT WE HAVE IN THE HALLWAY AS FAR AS PEOPLE CAN FILL UP THEIR BOTTLES? IS THAT WHAT WE'RE TALKING ABOUT? SO THESE ARE THE PARK STRUCTURES. THEY'RE TYPICALLY GREEN, WATER FOUNTAIN, AND THE ONES THAT WERE ADDING, WE WOULD SWAP OUT THE OLD ONES. THEY ADD A BOTTLE FILLER IN THE PARK SYSTEM AS WELL AS A DOG BOWL. AND THEN ADA ACCESSIBILIT. OKAY. WE YEAH. SO WE HAD ORIGINALLY PROPOSED, ONE IN THE PARK AND ONE ON A BUILDING. SO INTERNAL EXTERNAL, AND THEN IF WE HAVE EXTRA, WE COULD DO ANOTHER ONE IN A PARKS IN ANOTHER PARK SYSTEM. SO IS IT SIMILAR TO WHAT THERE IS AT THE

[01:20:04]

ALL RIGHT. YES. REPRESENTATIVE FROM DISTRICT FIVE, I COULD ABSOLUTELY BE WRONG HERE, BUT WHEN WE ORIGINALLY TALKED ABOUT THIS, I ALSO ENVISIONED THAT ONE OF THESE WOULD GO KIND OF IN THE AREA NEAR OUR DAILY BREAD. IS THAT OUTSIDE THE LINES? I DON'T RECALL THAT. I THINK THE INITIAL DISCUSSION WAS TRY LET'S PILOT IT, YEAH. AND IT WOULD BE AREA THAT THE CITY OWNS CURRENTLY.

AND WE DID TALK ABOUT QUAKERTOWN PARK. SPECIFICALLY, AND THEN WE WOULD BRING BACK THE DATA BASED ON USAGE AND MAINTENANCE COSTS AND, ANY ANYTHING ELSE BEFORE ROLLING IT OUT IN A LARGER THAT MIGHT BE RIPE FOR A FUTURE IF THESE IF THESE WORK WELL. CORRECT. OKAY THANK YOU. THANKS, KARA. OKAY. AND JUST TO MAKE SURE WE HAVE A, YOU KNOW, TO MAKE SURE WE HAVE A CLEAR, CLEAR RECORD, THIS WOULD BE THESE AREN'T IN THE IN THE CITY MANAGER'S PROPOSED BUDGET. THIS WOULD BE AN INCREASE. RIGHT. THIS WOULD THE GENERAL FUND COUNCIL SUPPLEMENTAL REQUESTS.

ARE THOSE IN OR OUT THERE IN THERE CURRENTLY IN WHAT IS FUNDED, OBVIOUSLY THAT'S A COUNCIL DECISION TO MAKE. THAT'S WHY WE'RE HERE, BUT THEY ARE CURRENTLY INCLUDED IN THE PROPOSED BUDGET. AND SO WHAT ABOUT THE LAST SLIDE YOU HAD THE $0.01 INCREASE, THOSE IN OR OUT.

THOSE ARE NOT INCLUDED. THOSE ARE NOT RECOMMENDED. THOSE ARE JUST OPTIONS FOR YOU TO LOOK AT.

IT'S AN OPPORTUNITY TO SEE WHAT WOULD BE POSSIBLE. BUT THE PROPOSED BUDGET IS NOT RECOMMENDING AN INCREASE TO THE TAX RATE FOR THOSE ITEMS. SO HOW DO YOU WANT ME TO SUBMIT WHAT I WOULD PROPOSE, HOW TO BETTER SPEND THAT 183,000? WHAT'S THAT PROCESS? YES. JUST TELL US TODAY WE'LL TAKE YOUR FEEDBACK, WE HAVE SEVERAL MORE MEETINGS BEFORE WE ARE SEEKING ADOPTION OF THE BUDGET. SO, THE EARLIER WE CAN GET YOUR FEEDBACK, THE BETTER. OKAY. SO I'LL GET THAT TO YOU. I'LL LOOK AT THESE. I THOUGHT THOSE WERE OUT BECAUSE IT SAYS, SUPPLEMENTAL AND. OKAY SO YEAH, I'LL PUT FORWARD, BECAUSE, YEAH, THERE'S SOME FIRST RESPONDER STUFF THAT I'D LIKE TO PRIORITIZE OR ADVOCATE. WE PRIORITIZE. OKAY OKAY. AND I'M GOING TO TAKE A REAL QUICK BREAK AND TURN OVER TO OUR BUDGET MANAGER, MATT HAMILTON. HI. GOOD MORNING. MAYOR, CITY COUNCIL MATT HAMILTON, BUDGET MANAGER, HERE TO PRESENT OR START THE ENTERPRISE OVERVIEW.

SO STARTING WITH THE AIRPORT FUND, THERE'S NO MAJOR CHANGES, SOMETHING THAT WE'VE SEEN OVER THE LAST FEW YEARS THAT HAS CONTINUED AND WE ANTICIPATE TO CONTINUE INTO FISCAL YEAR 2025,

[01:25:02]

NO QUESTIONS PLEASE. I KNEW I KNEW HE WAS LISTENING. SO THIS IS INFORMATION THAT YOU ALL HAVE ALREADY SEEN. SO WE'RE PROJECTING GROWTH IN THE ELECTRIC FUND AT 7.53% ON THOSE RETAIL SALES. THE REVENUE PROJECTIONS INCLUDE A 1.5% BASE RATE INCREASE. EFFECTIVE THE 1ST OF OCTOBER. THE ELECTRIC FUND IS AS THE AIRPORT FUND IS COMPLETING A COST OF SERVICE STUDY, THEY ANTICIPATE IT WILL BE COMPLETED DURING THE 2425 FISCAL YEAR, SO WE WILL BE RETURNING TO YOU WITH THOSE COST OF SERVICE STUDIES. AS WE MOVE THROUGH NEXT YEAR. ONE THING I WANT TO POINT OUT HERE THAT HAS CHANGED IS THAT, TONY AND STAFF HAVE HAD A CHANCE TO REALLY LOOK AT WHAT THEY WOULD LIKE TO REQUEST IN THEIR PERSONNEL, AND THEY'VE ACTUALLY REDUCED THIS NUMBER TO ABOUT 1.8 MILLION AND NINE FTES AND NO VEHICLES. SO WHEN WE COME BACK, AS I MENTIONED, WE HAVE A FOLLOW UP MEETING. WE WILL UPDATE ALL OF DMS INFORMATION AT THAT TIME TO FOLLOW UP WITH YOU ALL. SO HAD THINGS REMAINED AS THEY ARE, THIS IS THE POSITION SUMMARY. SO THIS WAS WITH THEIR ORIGINAL REQUEST OF 16.5 POSITIONS. WE WENT FROM 188 TO 200.5, AND THIS WAS THE LOWEST OF THOSE ORIGINAL REQUESTS. AND THAT LIST WILL BE UPDATED WHEN WE COME BACK TO SEE YOU AGAIN WITH THE NINE THAT TONY IS REQUESTING. SO AS WE MOVE FORWARD IN OUR FORECAST FOR THE ELECTRIC FUND, THE ELECTRIC FUND HAS UNIQUE CHALLENGES THATD ELECTRIC HAS SIGNIFICANT COSTS.

SO AS THE WEATHER PATTERNS CHANGE, WE SEE CHANGES IN THINGS LIKE THE EXPENSE THAT THEY NEED FOR PURCHASE POWER. SO WHAT YOU'LL SEE IN THIS, FORECAST IS THAT IN 2023, THEY HAD A REALLY INTENSE YEAR. SO PURCHASE POWER CAME IN AT 194 MILLION THAT YEAR. WE ARE FORECASTING CONVERSELY FOR THIS YEAR, THAT WE'RE GOING TO GO WITH I'M SORRY. YEAH. 2023. THEY CAME IN AT 194 IN 24 WHERE WE'RE SITTING NOW, WE'RE ABOUT 116. AND THEN WE'RE PROPOSING AGAIN THE 181 GOING INTO NEXT FISCAL YEAR. SO WE ARE WORKING VERY CLOSELY WITH TONY AND HIS TEAM AS WE WATCH THE WEATHER CHANGE AND THE NEEDS CHANGE FOR THE ELECTRIC FUND. THE ELECTRIC FUND IS ALSO, AS I MENTIONED EARLIER, THE ONLY FUND THAT WAS FALLING BELOW ITS FUND BALANCE TARGETS BECAUSE OF THOSE CHANGES IN COSTS. WE'RE SEEING LOTS OF ADDITIONAL PRESSURE ON THIS FUND. AS YOU'LL RECALL, WE DID ISSUE 31.5 MILLION FOR PURCHASE POWER THIS YEAR. SO WITH THAT ISSUANCE, THEY ARE GOING TO HAVE AN INCREASE IN THEIR DEBT SERVICE GOING FORWARD, IT'S ABOUT $7 MILLION A YEAR. AND TONY HAS TAKEN SOME PRETTY SIGNIFICANT STEPS OVER THIS YEAR WITH Y'ALL'S SUPPORT

[01:30:01]

REPRESENTATIVE FROM DISTRICT FOUR. SO THANK YOU. IS THE $0.89, INCREASE. IS THAT IS THAT BASED MORE OR LESS ON THAT THOUSAND 2000 SQUARE FOOT HOME, YES, SIR. OKAY. IT'S BASED ON 1000 KILOWATT HOURS, WHICH EQUATES TO, YOU KNOW, ABOUT A THOUSAND 2000 SQUARE FOOT HOME.

GOT IT. GOT IT. THANK YOU SO MUCH. OKAY OKAY. SO WE WILL MOVE ON NOW TO SOLID WASTE AND LET'S LET'S TAKE A QUICK BREAK. AND. BUT BEFORE WE DO, I WANT TO GIVE YOU MY, MY THOUGHTS ON, SO THAT YOU CAN CAPTURE THEM. MY REQUEST TO CHANGE WOULD BE TO OF THE. SO IF YOU'RE LOOKING AT THE LET ME GET THERE. IF YOU'RE LOOKING AT THE GENERAL FUND COUNCIL SUPPLEMENTAL REQUEST SLIDE, I WOULD I WOULD ADVOCATE FOR THE E-BIKES 3000 $32,500. THEN I WOULD NOT FUND, THE REMAINDER OF THOSE. I WOULD THEN PIVOT TO THE, GENERAL FUND, ONE SLIDE AND FUND THE DETENTION CENTER SUPERVISOR. AND FOR THE RECORD AND FOR PEOPLE TO UNDERSTAND THAT ARE WATCHING THIS, WE IF YOU'VE SEEN IN THE NEWS, WE'VE HAD SOME STRUGGLES IN THE CITY JAIL AND IT IS EXTREME URGENCY THAT WE ADDRESS THOSE ISSUES. ANYTIME YOU HAVE AND IT'S NOT NEWS, IT WAS NEWS. ANYTIME YOU HAVE ONE OF YOUR EMPLOYEES ARRESTED, THAT'S A PRIORITY. AND TO I CAN'T SEE FUNDING ANYTHING WITHOUT ADDRESSING THAT PRIORIT. AND SO I WANT TO BE CLEAR ON THE RECORD THAT THAT'S IMPORTANT TO ME TO SUPERSEDE ANY OF THE OTHER THINGS COUNCILS PUT FORWARD BECAUSE OF WHEN THESE ARE PUT FORWARD. THAT WASN'T AN ISSUE. AND NOW IT IS. AND SO, SAFETY IS A IS A PARAMOUNT CONCERN FOR ME AND THESE OTHER THINGS CAN BE MANAGED. PEOPLE CAN'T MANAGE THEIR OWN SECURITY THAT THAT IS THAT SQUARE CORE RESPONSIBILITY OF THIS BODY. AND SO I'M GOING TO ADVOCATE THAT, THAT TAKE A PRECEDENT OVER THOSE OTHER THINGS THAT LEAVES MY MATH, $13,000 UNALLOCATED AND THAT

[01:35:01]

[01:40:04]

WE HAVE A EMS BATTALION CHIEF EMS CAPTAIN THAT WORKS 8 TO 5. OBVIOUSLY, WE RUN AROUND THE CLOCK. SO ANYTHING AFTER HOURS, EQUIPMENT, MAINTENANCE BREAKDOWN, ISSUANCE OF NARCOTICS OR THINGS OF THAT NATURE, THEY HAVE TO COME IN OFF DUTY. WE HAVE TO SEND THE OTHER DUTIES TO PEOPLE AS WELL. WE DID SUBMIT A GRANT OR SAFER GRANT FOR THREE EMS LIEUTENANTS. WE JUST FOUND OUT WE DID NOT GET THAT FUNDED. SO THIS WAS KIND OF A BACKUP PLAN. INSTEAD OF GETTING THREE, JUST ASKING FOR ONE FOR THIS UPCOMING BUDGET YEAR TO JUST START THE PROGRAM. SO THE INTENT BEHIND THAT WOULD BE A SHIFT BASE 24 HOURS A DAY. THAT WOULD BE THE EMS LIAISON WITH ALL OUR EIGHT AMBULANCES. AND OF COURSE, EVERY FIRE TRUCK CARRIES MEDICAL GEAR ALSO SO THEY CAN RESPOND, THIS PERSON WOULD ACTUALLY RESPOND TO EMERGENCY CALLS SUCH AS MVAS WITH EXTRICATIONS ANY OF THE TYPE OF SPECIALTY CALLS. THE OTHER THING IS THAT PERSON WOULD ACTUALLY BE THE INCIDENT SAFETY OFFICER. WE DO NOT CURRENTLY HAVE THESE IN THE FIRE DEPARTMENT. NFPA BEST STANDARD PRACTICES IS EACH TYPE OF STRUCTURE, FIRE OR HIGH HAZARD EVENT. YOU ACTUALLY ASSIGN ONE PERSON TO MONITOR CONDITIONS. SO THIS PERSON WOULD FILL THAT ROLE. AND THE LAST THING IS ALSO COMMUNITY PARAMEDIC PROGRAM. SO THIS IS SOMETHING THAT WE'RE LOOKING AT. THESE PROGRAMS ACTUALLY FOCUS ON HOW USERS OF 911 MORE HOUSED. SO THEY HAVE SUCCESSFUL PROGRAMS IN PLANO.

WE'VE KIND OF LOOKED AT THE MIRROR AND SEEING WHAT THEY LOOK LIKE, AND THIS WOULD ACTUALLY WORK WITH THE LOCAL HOSPITALS, IDENTIFY THOSE PEOPLE, GO TO THEIR HOUSES AND PROVIDE SUCH SERVICES AS EVEN LIKE PRESCRIPTIONS, BECAUSE RIGHT NOW WE'RE HAVING PEOPLE CALL 911 BECAUSE THEY RUN OUT OF PRESCRIPTIONS. SO REALLY KIND OF JUST A HOLISTIC LOOK ON HOW CAN WE REDUCE CALLS FOR SERVICE, SENDING AMBULANCES AND FIRE TRUCKS OUT THERE FOR NON-EMERGENT CALLS? EXCUSE ME. ONE THING I WOULD LIKE TO OPPORTUNITY KIND OF TALKING ABOUT POPULATION EARLIER. SO ONE THING I WANT TO POINT OUT THAT DIDN'T FIRE DEPARTMENT DOES COVER THE 155,000. IN THE CITY OF DENTON POPULATION. BUT WHAT YOU DON'T CONSIDER IS THE UNIVERSITIES. SO THE UNIVERSITIES HAVE POLICE DEPARTMENTS. EACH ONE HAS THEIR OWN POLICE DEPARTMENT. THEN FIRE PROVIDES FIRE AND EMS FOR ALL THOSE COLLEGE STUDENTS AS WELL.

SO REALLY WE ARE SERVING A POPULATION OF OVER 200,000 ANNUALLY AS WELL. ARE WE LARGE ENOUGH IN SIZE WHERE WE NEED A COMMUNITY PARAMEDIC PROGRAM? I THINK WE'RE BEYOND THAT.

HONESTLY. WE SHOULD PROBABLY HEAD ONE YEARS YEARS AGO AS WELL, SO THAT'S WHAT WE'RE TRYING TO LOOK ON. HOW CAN WE GET INTO THE PROGRAM REALLY? ONE EMS LIEUTENANT, WOULD IT BE ABLE TO SPEND A YEAR BUILDING THE PROGRAM? WE'VE ALREADY HAD, SEVERAL DIFFERENT MEETINGS WITH LOCAL HOSPITALS. ONE IS VERY SUPPORTIVE TO THE POINT THAT WE'RE WILLING TO SUPPORT FINANCIALLY. WE HAVEN'T REALLY WORKED THAT OUT AS WELL. SO THIS POSITION COULD POSSIBLY BE PARTIALLY FUNDED BY THE HOSPITALS, MAYBE NOT URGENT, BUT IN A FUTURE FRAUD REPORT, CAN YOU PUT SOMETHING IN THE FRAUD REPORT ABOUT WHAT THE PARAMETERS OF A PROGRAM WOULD BE JUST FOR GENERAL KNOWLEDGE? YES. AND LAST THING, MAYOR, SO WE DON'T HAVE SOMEONE WHO'S WORKING ROUND THE CLOCK THAT THAT HANDLES THESE TYPE OF SITUATIONS. SO IF SOMETHING HAPPENS IN THE MIDDLE OF THE NIGHT, YOU WAKE UP THE BATTALION CHIEF AND THEY GO OUT AND THEY TAKE CARE OF THAT. AND THE SECOND QUESTION BASED OFF OF THAT IS SO DOES THAT THEN ADD A COST OF INCREASED OVERTIME FOR THOSE FOLKS WHO HAVE TO GO IN NORMALLY OFF DUTY, WHEN WE HAVE INSTANCES EITHER OR. SO A BATTALION CHIEF CAN ADDRESS THAT, OR WE WOULD HAVE TO SEND IN OUR REGULAR 8 TO 5 PEOPLE OVERTIME TO MANAGE THAT. OR THE THIRD THING IS WE HAVE TO PULL AN ENGINE OR AMBULANCE OUT OF THE DISTRICT TO COME TO WHERE WE STORE THE EMS SUPPLIES, EQUIPMENT, VARIOUS THINGS OF THAT NATURE. SO WE'RE ACTUALLY MOVING FROM THE RESPONSE DISTRICT ALSO. SO THIS IS ALL ABOUT KIND OF CREATING EFFICIENCIES WITH LESS FTES HONESTLY. SO ULTIMATE GOAL IS TO EVENTUALLY HAVE THREE FULL TIME SHIFT BASED EMS LIEUTENANTS WHERE THEY'RE KIND OF MANAGING THAT SHIFT ON ALL EMS ASPECTS. OKAY. THANK YOU, CHIEF MAYOR. THANK YOU FOR ALLOWING ME TO

[01:45:01]

LOOKING OUT AT THEIR FIVE YEAR, HERE ARE THEIR RESOURCES AND THEIR EXPENDITURES. SO WE'RE RUNNING PRETTY LEVEL. WE'VE GOT THAT 1.5% INCREASE ALREADY PROGRAMED IN. WE'RE GOING TO TALK ABOUT THE RATES IN PARTICULAR IN JUST A MOMENT. AND BRIAN IS HERE TO ANSWER ADDITIONAL QUESTIONS. THEIR THEIR BASELINE INCREASES WERE ABOUT 116 TO 98. WE HAVE THEM ALL LISTED HERE WITH BASELINE. BUT THAT INCLUDES THEIR SUPPLEMENTAL AT 121 FIVE AS WELL. AND PRIMARILY THEIR BASELINE INCREASES WERE DUE TO CONTRACTS HERE. WHAT I'LL POINT OUT ON THE FIVE YEAR IS LOOKING AS WE PROJECT FORWARD, WE HAVE THE 1.5% THIS YEAR. AND THEN THREE, FOUR AND A HALF, FOUR AND FIVE MOVING THROUGH THE NEXT SEVERAL YEARS. AND WHAT I'M GOING TO DO HERE. SO THIS IS THE DETAIL OF HOW THE RATES BREAK OUT WITH THE 1.5% INCREASE. SO I'M NOT GOING TO READ ALL OF THESE, FOR THE SAKE OF TIME. IF YOU HAVE QUESTIONS, FEEL FREE TO ASK THEM. I'LL LEAVE THIS UP FOR A COUPLE MORE SECONDS, BUT THIS IS JUST WHAT THE RATE IS NOW TO THE ONE AND A HALF. THERE ARE SOME CHANGES WITH THE ROLL OFF JUST TO RECOVER THE COST OF THE SERVICE, SO DO YOU HAVE ANY QUESTIONS ABOUT THIS? YES. REPRESENTATIVE FROM DISTRICT ONE. ARE THESE AMOUNTS FOR THE CONTAINERS THAT WE ALREADY HAVE, OR ARE THESE AMOUNTS FOR THE CONTAINERS OF THE NEW PEOPLE THAT ARE GOING TO BE GETTING NEW CONTAINERS? THIS WOULD BE AN INCREASE IN THE RATE FOR EVERYTHING THAT'S OUT THERE, RIGHT NOW BY THE AMOUNT LISTED HERE. EXCUSE ME. THANK YOU. YOU'RE WELCOME. ANY OTHER QUESTIONS? ADDITIONAL RATES ARE LISTED HERE. THEY DO HAVE SOME CHANGES HERE. THE 1.5% IS TO THOSE RESIDENTIAL RATES THAT WE HAD LISTED. AND TO THEIR COMMERCIAL TRASH. BUT THEIR COST OF SERVICE DID RECOMMEND SOME ADDITIONAL CHANGES. SO THOSE ARE ALL LISTED HERE. AND HERE. WE'RE BACK TO THE ONE AND A HALF. SO WHAT DOES THAT LOOK LIKE ON THE BILL. THE 1.5% INCREASE ON THE 95 GALLON TRASH AND 95 GALLON RECYCLING WILL BE ABOUT $0.38 TO THE CUSTOMER PER MONTH. AND HERE I HAVE A SLIDE THAT GIVES YOU AN IDEA OF THOSE RATES SUMMARIZED. SO RESIDENTIAL AND COMMERCIAL. THE ONE AND A HALF ROLL OFF RATES. THESE ARE THE CHANGES COMPACTOR RATES, LANDFILL RATES AND COMMERCIAL TRASH. SO WHAT DOES THAT 1.5% THEN DO TO US. WHEN WE LOOK AT OUR NEIGHBORS. SO THESE ARE ALL MUNICIPAL COLLECTORS. IT CAN GET VERY DIFFICULT TO TRY TO GET APPLES TO APPLES COMPARISONS. WHEN WE PULL IN THE PRIVATE COMPANIES. BUT THESE CITIES ARE MUNICIPAL COLLECTORS, AND SO WHAT YOU CAN SEE HERE, THE LIGHT BLUE IS WHERE DENTON IS, RIGHT NOW. THE GREEN IS WHERE WE WOULD BE WITH THIS PROPOSED BUDGET AND THESE CHANGES. AND YOU CAN SEE THAT STILL PUTS US MIDDLE OF THE PACK DOESN'T CHANGE WHERE WE LINE OUT WITH SOME OF OUR OTHER CITIES. ANY SOLID WASTE QUESTIONS. ANY QUESTIONS FOR STAFF SEEING NONE I DO HAVE A COUPLE OF THINGS. BRIAN, IF YOU COULD SPEAK TO PUT

[01:50:07]

SO, YOU KNOW, OVERALL, IT'S SEVERAL MILLION DOLLARS A YEAR INTO THE, THE, THE, THE FUND.

BUT IT DOES HELP US ENSURE FINANCIAL VITALITY THROUGHOUT THE YEAR. AND THEN CAN YOU HELP WITH THE, CAN YOU HELP ME UNDERSTAND THE STATUS OF THE LEWISVILLE SOLID WASTE SHUT DOWN? ARE THEY ARE FULL SHUT DOWN? ARE THEY FACING WHAT ARE THEY? THERE ARE ACTUALLY TWO, LANDFILLS OVER IN THE LOUISVILLE AREA. CAMELOT, WHICH IS ACTUALLY RUN BY THE CITY OF FARMERS BRANCH AND OPERATED BY REPUBLIC WASTE. THE SECOND ONE, WHICH WE CALL, WHICH WE OFTEN TALK ABOUT BEING IN LEWISVILLE, IS WHAT'S CALLED THE DFW LANDFILL. THAT IS AN OLD WASTE MANAGEMENT FACILITY OVER THE PAST FEW YEARS, THEY'VE BEEN INTERNALIZING A LOT OF WASTE, WORKING TOWARDS FINAL CLOSURE, THEY'RE TAKING IN A LITTLE BIT OF WASTE, BUT IT'S SELF HAULED MATERIAL BY CONTRACTS THAT THEY HAVE WITH OTHER CITIES. SO THERE IS NO WASTE THAT WE'RE AWARE OF THAT'S GOING TO THE DFW LANDFILL, CAMELOT IS TAKING A LOT OF IT. BUT WE'VE PROBABLY, YOU KNOW, SINCE THAT THEY, THE DFW LANDFILL HAS STARTED CLOSING, WE'VE SEEN A SIGNIFICANT INCREASE IN THE VOLUME AND THE TRAFFIC THAT HAS ACTUALLY COME INTO THE CITY OF DENTON. SO I WOULD SAY, YOU KNOW, PROBABLY, YOU KNOW, ANYWHERE FROM ABOUT 15 TO 20% INCREASE JUST BECAUSE OF THAT CLOSURE. OKAY. GREAT. AND IF I MAY JUST GIVE CREDIT WHERE CREDIT'S DUE, I THINK IT'S FANTASTIC. WHAT WHAT'S GOING ON OUT THERE? I WOULD ENCOURAGE, THIS IS THE CITY MANAGER'S OFFICE. NOTE THAT WE SEND, DTV OR SOME OF THOSE FEATURES. WE DO OUT THERE TO THE RECYCLING CENTER, BECAUSE, I MEAN, YOU CAN'T BEAT IT. IT'S YOU PULL IN, THEY CHECK YOUR ID, TELL YOU WHERE TO PUT STUFF. I HAD A GAS CAN WITH OLD GAS, AND THEY'RE LIKE, BRING IT IN, AND SO JUST REALLY EDUCATING THE PUBLIC ON THE RESOURCE WE HAVE BATTERIES, FOAM BOXES, YOU KNOW, RECENTLY I HAD A, NORMALLY, IF I BUY, LIKE, A ON A RARE OCCASION, I BUY, LIKE A 40 INCH TV, I CAN THAT BOX WILL FIT IN MY NEIGHBOR'S RECYCLE BIN. SO I JUST PUT IT IN THERE SO THAT THE SO THAT THEY THINK THEY GOT A NEW TV IF THEY WANT TO BREAK IN. BUT IN THIS INSTANCE, IT WAS BIGGER THAN THAT. AND SO I HAD TO TAKE IT OUT THERE. SO IT WAS GREAT. IT WORKS OUT FANTASTIC, AND MY NEIGHBORS APPRECIATED IT, BUT BUT BETWEEN THAT AND JUST THE OTHER SERVICES YOU PROVIDE, JUST I MEAN, AND I HAD TO DUMP A MATTER OF FACT, THE OLD TV AND I HAD GOT TO DRIVE AROUND AT THAT LEVEL. YOU JUST YOU SET IT UP THERE AND THEN THEY PUSH IT OVER. CORRECT? YEAH. I MEAN, JUST PHENOMENAL WORK GOING ON OUT THERE. AND SO I TRULY WANT TO HIGHLIGHT THE RESOURCE AND WHAT WE'RE DOING THERE, NOT TO MENTION THE RESOURCE CENTER REUSE CENTER OR WHATEVER IT'S CALLED TO GO BUY STUFF. BUT REALLY THAT TURNKEY OPERATION OF DROPPING STUFF OFF OF WHAT DO I DO AT GAS? WHAT DO I DO WITH BATTERIES? JUST IT REALLY IS A USER FRIENDLY OUT THERE. SO SOME KIND OF VIDEO FEATURE I THINK WOULD SERVE OUR COMMUNITY WELL. THANK YOU. MAYOR YEAH.

REPRESENTATIVE FROM DISTRICT 423. THANK YOU. I WONDER IF. SOLID WASTE RATES FROM COMMUNITIES THAT USE A PRIVATE FOR A FOR PROFIT COLLECTOR ARE AVAILABLE. THEY ARE, AND WE CAN PROVIDE THAT INFORMATION TO YOU. BUT AGAIN, THE WAY THEY DETERMINE THEIR RATES AS WELL AS THE APPLES TO APPLES COMPARISON, THE SERVICE LEVEL, THAT'S GIVEN IT DOES GREATLY AFFECT WHAT IS

[01:55:03]

AND THAT WAS OUR GOAL FOR 2030. SO AS WE GET MORE AND MORE ON, YOU KNOW, WE HAVE THE SMALL AMOUNT OF STUFF BEING SENT TO THE LANDFILL SO THAT EXTENDS THE LIFE OF THE LANDFILL. BUT AGAIN, CONVERSELY WE'RE FIXED COSTS. SO WE'VE GOT A GOT A GOT TO BALANCE ALL THAT TOGETHER. SO YOU KNOW IT'S A IT'S A VERY COMPLEX PROBLEM TRYING TO COME DOWN TO THE BOTTOM DOLLAR AND CENT THAT ALL SAID, YOU KNOW WE'RE STILL MAINTAINING ABOUT A 45 TO 50 YEAR LIFE IN THE CURRENTLY PERMITTED CAPACITY AT THE CITY OF DENTON LANDFILL. SO WE'RE SORT OF THE UNICORN OUT THERE IN THE NORTH TEXAS AREA, WHERE WE'RE, WE'VE GOT EXISTING CAPACITY AS THE AS A THE AREA CONTINUES TO GROW, WE CONTINUE TO WORK WITH BOTH THE RESIDENTIAL AND BUSINESS COMMUNITIES TO MINIMIZE THE AMOUNT OF MATERIAL THAT'S, THAT'S USED IN THIS, THAT THAT'S BEING DISPOSED OF HERE AND DIVERTING AS MUCH MATERIAL AS POSSIBLE. AND LASTLY, CAN YOU ADDRESS SORT OF THE PIGGYBACK OF MY QUESTION WITH COUNCILOR HOLLAND'S QUESTION AND THAT IS DO WE HAVE QUOTE UNQUOTE COMPETITION FROM OTHER, REFUSE PROVIDERS THAT THEN THEIR WASTE COMES TO US, YOU KNOW, SO ARE THERE PEOPLE IN OUR SERVICE AREA THAT ARE PROVIDING REFUSE SERVICES, BUT THEN ULTIMATELY WE CONTRACT AND TAKE THE REFUSE. THE SHORT ANSWER IS YES, BUT AGAIN, YOU KNOW, YOU'VE GOT TWO DIFFERENT TYPES OF PRIVATE HAULERS. YOU'VE GOT THE PRIVATE HAULER THAT JUST OWNS THE GUY IN THE TRUCK. AND NOWHERE TO TAKE IT. AND THEN YOU'VE GOT THE COMPANY THAT HAS THE GUY IN THE TRUCK AND THEY OWN LANDFILL CAPACITY. THE PEOPLE WITH THE GUY IN THE TRUCK AND THE LANDFILL CAPACITY. WE SEE VERY FEW OF THOSE TRUCKS THAT COME ACROSS OUR SCALES. OKAY. THE PEOPLE THAT ARE COMING TO US THAT ARE THIRD PARTY HAULERS, THOSE ARE THE PEOPLE THAT ARE OUT PROVIDING SERVICE NOT ONLY IN OTHER CITIES, BUT ALSO THE COUNTY AREAS THAT DON'T HAVE ANY SORT OF SERVICE YET, JUST CONTRACT ONE ON ONE. THEY BRING THAT MATERIAL TO US, AND IT'S EITHER US OR TAZEWELL UP IN, WHITE SETTLEMENT OR TAKING IT

[02:00:03]

THEY'RE DRIVING AS FAR AS GAINESVILLE, KRUM DECATUR COMING UP BECAUSE THEY HAVE AN ETHIC AND AN ETHOS THAT ACTUALLY THEY WANT TO PROMOTE, YOU KNOW, RECYCLE, RECYCLING AND DIVERSION. SO WE'RE HAPPY TO TAKE THAT MATERIAL. NOW, OUR HOUSEHOLD HAZARDOUS WASTE PROGRAM, UNFORTUNATELY, IS FOR CITY OF DENTON RESIDENTS ONLY. SO THINGS LIKE GAS, PAINTS, CLEANERS. IF YOUR CITY DIDN'T RESIDENT, YOU KNOW, BRING YOUR, YOUR, WATER BILL OR YOUR UTILITY BILL WITH YOU AND WE'D BE GLAD TO PROVIDE THAT SERVICE. I THANK YOU. AND A SECOND QUESTION, IF I MAY, JUST, THE PART I DON'T REMEMBER IF IT CAME UP AS PART OF THE STRATEGY OR, OR OTHERWIS, BUT, THE PLAN TO DO GAS CAPTURE AND BENEFICIAL REUSE. YES. IS THAT ON TRACK? THAT IT IS AND IS THAT FUNDED? WE HAVE A LITTLE, ISSUE WITH THAT. THE FIRST GO ROUND ON ON THE BID AND THE PROPOSALS, CURRENTLY WE'VE, WE'VE COMPLETED, SHORTLIST INTERVIEWS WITH THE TOP THREE COMPANIES FOR THE REBID, WE'RE CHECKING, BACKGROUND. WE DO A COUPLE OF SITE TOURS. SO HOPEFULLY HERE BY THE END OF THIS YEAR, YOU'LL SEE A CONTRACT FOR US TO GO AND CONTRACT WITH THE COMPANY, ONCE WE GET ALL THE I'S DOTTED T'S CROSSED, THEY ESTIMATE ANYWHERE BETWEEN NINE MONTHS AND 18 MONTHS TO ACTUALLY GET THE PLANT BUILT. AND US ACTUALLY START, PUTTING GAS BACK INTO THE PIPELINE. AND IS THERE ANYTHING THAT NEEDS TO BE REFLECTED IN BUDGET TO START THAT? AND, YOU KNOW, OR THAT'S MONEY COMING TO US. IT'S TOTALLY REVENUE POSITIVE FOR US. IT'S NOT A IT'S NOT, WE WILL RECEIVE REVENUE. IT WILL NOT COST US ANYTHING. OKAY. AWESOME. THANK YOU. THANK YOU. ANYONE ELSE? REPRESENTATIVE DISTRICT ONE. I'M LOOKING AT THESE VARIOUS CARTS.

JUST CURIOUS ABOUT THE CARTS. AND I'M SEEING, ONE PAIR. YOU GET A REFUSE AND A RECYCLING CART, AND IT'S WHAT? SO WE GET WE HAVE THREE DIFFERENT COLORED CARTS. WE HAVE A BLUE CART, A GREEN CART, AND A BROWN CART. CORRECT IS THAT BROWN CART CONSIDERED A REFUSE CART? NO.

THAT IS A YARD WASTE CART. I DON'T SEE A YARD WASTE CART ON HERE. I DON'T SEE A YARD WASTE CART, THAT IS. SHOULD I BE SEEING THAT? NO, YOU SHOULDN'T, BECAUSE, YOU KNOW, ON A YARD WASTE CART, YOU'RE GOING TO PURCHASE THAT CART FROM THE CITY OF DENTON? WELL, THAT'S A PURCHASE WE GET. YEAH. YOU PAY $20, WE DELIVER THAT CART. OKAY. AND THAT MONTHLY. PARDON? IS THAT A MONTHLY? NO. NO, THAT THAT IS A ONE TIME COST. AND THEN THE YARD WASTE COLLECTION IS ACTUALLY ROLLED INTO THESE COST TO PROVIDE SOLID WASTE SERVICES. SO IF I NEED AN ADDITIONAL, YARD WASTE COST IS THAT GOING TO WHAT. HOW MUCH DOES AN ADDITIONAL YARD WASTE CART. YES, IT'S AN ADDITIONAL $20 OKAY. SO I MEAN WE WILL AND AGAIN WE'RE WE'RE WE'RE ACTUALLY TAKING A LOSS AT SELLING THEM FOR $20. BUT AT THE END OF THE DAY, WE MAKE UP THE ADDITIONAL FUND IN INCREASED IN EFFICIENCY BECAUSE WE'RE NOT HAVING TO PICK THEM UP. YOU KNOW, INVESTING THE TIME THAT THE RISK BECAUSE OF REPETITIVE MOTION, INJURIES. SO IT'S, YOU KNOW, WE FEEL COMFORTABLE IN SELLING THEM FOR $20. NOW, WE'RE NOT GOING TO SELL YOU 100 CARTS FOR $20.

THERE IS A LIMIT. YOU CAN GET FIVE OF THEM. AND THEN AT THAT POINT, YOU KNOW, YOU'RE YOU'RE YOUR LANDSCAPE. FOLKS SHOULD BE TAKING THAT TO THE LANDFILL OUTSIDE OF OUTSIDE OF PUTTING IT ON THE CURB FOR OUR FOLKS TO, TO PICK THEM UP. SO YOU KNOW, I'M ASKING ABOUT THIS BECAUSE I ACTUALLY HAVE FIVE CARTS, AND WE HAVE A LOT OF TREES. YOU DO? YES. SO I WAS JUST WONDERING, AM I PAYING $20 A MONTH FOR EACH ONE OF THOSE CARTS? BUT NOW THAT I FOUND OUT, I PURCHASED $100 WORTH OF CARTS, SO THAT WAS KIND OF A PERSONAL THING, BUT I JUST DIDN'T SEE IT HERE, BECAUSE WE'RE ACTUALLY. YOU KNOW, SENDING OUR. YEAH YES, WE'RE FOLLOWING THE SOLID WASTE AND

[02:05:03]

YEAH, AND? AND IN THAT BOX, THERE'S A LOT OF STYROFOAM. YES. RIGHT. CORRECT. AND I'M WONDERING IF THERE'S BEEN ANY PROGRESS IN THE DIVERSIFIER TO DENSIFIER. PARDON ME. DENSIFIER.

IT THE DENSIFIER I WROTE IT OUT, I THOUGHT I HAD IT DENSIFIER ANY PROGRESS IN THAT, PLEASE, I HAVE NOT SEEN THE CONTRACT FROM THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENT. WHO IS PROVIDING THE GRANT. BUT WE ANTICIPATED ANY DAY, ONCE WE GET THAT CONTRACT THAT SAYS, YES, YOU CAN SPEND THE DOLLARS, THEN WE CAN GO AHEAD AND GET THAT IN. BUT WE'RE CURRENTLY COLLECTING, YOU KNOW, LARGE STYROFOAM JUST IN ANTICIPATION OF RECEIVING THE MACHINE. EXCELLENT AGAIN, I LOOK FORWARD TO THAT ANNOUNCEMENT, DO NOT PUT IT IN YOUR BLUE BIN BECAUSE IT'LL BE, YOU KNOW, CANNOT MANAGE THAT. IF YOU'VE GOT THAT LARGE STYROFOAM, BRING IT TO OUR HOME CHEMICAL COLLECTION FACILITY WILL DIVERT IT THERE. THANK YOU. ANY OTHER QUESTIONS? I DO WANT TO POINT OUT JUST A COUPLE THINGS. IF YOU COULD, PLEASE, NEXT TIME WE SEE THIS CALL OUT, BECAUSE I THINK IT'S TO YOUR CREDIT, CALL OUT THE RETURN TO WORK PROGRAM. PEOPLE NUMBERS. RIGHT. CALL THAT OUT BECAUSE THAT THAT IS THAT'S CRITICALLY IMPORTANT TO OUR COMMUNITY. AND IT'S A GREAT THING YOU'RE DOING. SO I WANT TO I WANT TO MAKE SURE THAT'S NOTED, AND TO THE CITY MANAGER, SARAH, I WANT TO SAY, AS YOU LOOK INTO THE TUBING AND THE DELIVERY THING, IF THAT COST MAKES SENSE AND THAT USE CASE MAKES SENSE, THEN PLEASE CONSIDER THAT MAYBE FOR A MID-YEAR ADJUSTMENT, THAT SORT OF THING, AND THEN I AGAIN WANT TO GIVING CREDIT WHERE CREDIT'S DUE. HERE'S MY UNDERSTANDING, THE DRIVERS ROUTES WHEN WE'RE TALKING ABOUT AGAIN, SAFETY IS PARAMOUNT TO THE CITY OF DENTON. AND SO IT'S MY UNDERSTANDING THAT YOUR DRIVERS ROUTES ARE STAGGERED SO THAT IT'S THEY DON'T GET KIND OF IN THIS ROUTINE. RIGHT. SO THEY THEY GO DIFFERENT ROUTES, DIFFERENT WAYS AT DIFFERENT TIMES. CORRECT TO MAKE SURE THAT'S FRESH AND MUSCLE MEMORY DOESN'T KICK IN AND ALL THOSE THINGS. AND SO I THINK THAT'S REALLY IMPORTANT.

AND I DON'T KNOW THAT ENOUGH PEOPLE UNDERSTAND THE EFFORTS YOUR MANAGEMENT TEAM AND YOU'RE GOING THROUGH TO MAKE SURE YOU KEEP THOSE IN OUR COMMUNITY SAFE, SO I APPRECIATE THAT. AND I'LL JUST SAY THAT I, I LEARNED THAT AT THE ELEMENTARY SCHOOL BECAUSE Y'ALL ARE THE BEST THING GOING. I MEAN, KIDS LIKE TRASH TRUCKS, AND Y'ALL ARE ALWAYS THERE AND SO AND EDUCATING AND SHOWING THE ROUTES AND SHOWING THE COMPUTERS AND THAT SORT OF THING. SO WANT TO AGAIN, THANK YOU FOR THAT COMMUNITY SERVICE. THANK YOU FOR YOUR EFFORTS AND EFFORTS TO MAKE SURE YOU KEEP OUR COMMUNITY SAFE AND IN WAYS THAT WE, THE LAYPERSON, MAY NOT THINK ABOUT. BUT Y'ALL ARE, PROACTIVELY CONSIDERING THOSE THINGS. SO THANK YOU FOR THOSE. THANK YOU. AND I APPRECIATE Y'ALL. SUPPORT OF THE PROGRAM. YEAH. THANK YOU. ALL RIGHT. OKAY. SO FOR SEVERAL OF THE SECTIONS THAT WE HAVE LEFT, WE HAVE THE SAME TYPE OF PROCESS. YOU ALL HAVE SEEN THE MAJORITY OF THIS INFORMATION ALREADY, SO I'M GOING TO GO QUICKLY AND HAVE THE DIRECTORS ANSWER QUESTIONS.

IF YOU HAVE ANY OF THEM, SO GOING OVER THE WATER FUND, NO CHANGES SINCE YOU LAST SAW THIS INFORMATION. THERE'S SUPPLEMENTAL REQUESTS. TOTAL 957,000. WE'RE SEEING GROWTH IN RESIDENTIAL AND COMMERCIAL CUSTOMERS. AND ADDITIONALLY, LOOKING AT HOW WE WILL MANAGE THE HUNTER COLE DEVELOPMENT AND MUD GROWTH AS IT RELATES TO THE WATER INFRASTRUCTURE IN THE GROUND, RIGHT NOW, THEIR REQUEST INCLUDES, THEIR REQUEST FOR SALARIES. SO THEY HAD 15.5 FTES THAT MOVED TO ENVIRONMENTAL SERVICES IN 2014. AND THEY'RE ASKING FOR TWO. THEY'RE ASKING FOR NINE. EXCUSE ME. SO HERE'S WHAT THEY'RE ASKING FOR GOING INTO THIS YEAR. YOU'VE SEEN THI.

WE TALKED ABOUT IT. THE OPERATORS AT RAY ROBERTS AT LAKE LEWISVILLE, THE APPRENTICE AND

[02:10:03]

REPRESENTATIVE FROM DISTRICT TWO. STEVEN, DID WE GET, I KNOW YOU HAVE A RATIONALE FOR THE, THE STRATIFICATION THAT YOU'VE CHOSEN. WHAT DID WE GET TO SEE ANY OF THAT BACK UP AT ANY POINT? OR. I MEAN, WHAT WHAT'S LEADING YOU TO THESE PARTICULAR BIN SIZES AND THE AND THE RATES FOR THE DIFFERENT BIN SIZES? ARE YOU REFERRING TO THE ACTUAL THE TIERS, THE TIER RATES AND THE RATES FOR THOSE PARTICULAR GALLON BINS? OKAY. STEVEN GAYE DIRECTOR WATER UTILITIES BASICALLY WE START WITH OUR TIER ONE IS LIFE SUSTAINING. SO IT'S WHAT WE LOOK. WE LOOK AT OUR WINTER DEMANDS AND WE SEE WHAT A TYPICAL CUSTOMER USES. AND THAT'S OUR LOWEST BAND. SO THAT'S ALL INDOOR USE. AND THEN IT ESCALATES FROM THERE, WHICH WOULD WOULD INDICATE YOUR DISCRETIONARY AND OUTDOOR USE. AND THIS IS VERY CONSISTENT WITH THE INDUSTRY. YEAH. NO I JUST I'M NOT I'M NOT DISPUTING THAT. IT'S MORE OF AN EDUCATIONAL QUESTION. WHAT WHAT WHAT'S LEADING TO THOSE. SO IT AT SOME POINT IF YOU'VE GOT A LINK OR A URL OR SOME BACKUP MATERIALS, I'D I'D LOVE TO LEARN WHY THIS IS THE BEST PRACTICE SO THAT WE CAN CONVEY THAT BACK TO THE CITIZENS. I'D BE HAPPY TO SHARE. THANK YOU. APPRECIATE IT. ANY OTHER QUESTIONS? REPRESENTATIVE FROM DISTRICT FIVE? YEAH. SO, STEVEN, WHAT ARE YOU. WHAT HAVE YOU BEEN DOING TO FILL IN THE GAP OF AN ASSISTANT WORKING? ALL RIGHT, ALL RIGHTY. BOY, THIS THIS SATURDAY IS FUN, RIGHT? ARE YOU GUYS JUST BEEN DOING IT BY COMMITTEE? NO, NO, SIR, I'VE BEEN TAKING THE LEAD. JUST DOING EVERYTHING. I HAVE A LIMITED OPPORTUNITY TO DELEGATE. SO THE APPRENTICE PERSON. YES, SIR. IS THAT THAT'S THAT WOULDN'T BE THE EQUIVALENT OF AN INTERN, RIGHT? THAT'S AN ACTUAL. THAT'S A PERSON THAT'S WORKING ON BECOMING A WATER OPERATOR. YEAH. TO BUILD THAT PIPELINE FOR OPERATORS IN OUR COMMUNITY. SO WE'RE GOING TO BE WORKING WITH THE LOCAL SCHOOLS, THE ISD, TO IDENTIFY A CANDIDATE, BRING THEM IN AND TRAIN THEM AND GET THEM CERTIFIED AS AN OPERATOR BY TC.

OKAY. AND THEN THEY'RE, YOU KNOW, THEY'LL HAVE A PATHWAY FOR A CAREER. OKAY AND YOU GUYS GOT, YOU GUYS WON AN AWARD A COUPLE WEEKS AGO, RIGHT? WHAT'S THAT? YOU GUYS WON AN AWARD A COUPLE WEEKS AGO, RIGHT? WELL MAYOR JOINED US IN, WHEN WAS THAT? ANAHEIM. WHERE WE WERE RECOGNIZED FOR THE PARTNERSHIP FOR SAFE DRINKING WATER. AND THAT'S A THAT'S A PROGRAM THAT'S SPONSORED BY THE AMERICAN WATER WORKS ASSOCIATION. AND IT'S ALL ABOUT OPTIMIZATION. SO WE RECEIVED THE DIRECTOR'S AWARD. MANY CONGRATULATIONS TO YOU. WELL DONE. THANK YOU, REPRESENTATIVE FROM DISTRICT SIX, COUNCILPERSON JESTER. HELLO HELLO, AM I CORRECT IN OUR CONVERSATIONS THAT SOME OF THESE POSITIONS THAT ARE BEING ASKED FOR ARE DUE TO THE LACK OF REDUNDANCY, SO THAT IF ONE PERSON IS OUT SICK OR, OR HAS SOME KIND OF FAMILY EMERGENCY, THERE'S NO ONE ELSE IN IN THAT POSITION THAT CAN THEN COME IN. AND SO YOU'RE COMING IN OR YOU KNOW, IS SOMEONE IS BEING TAKEN AWAY FROM ANOTHER POSITION COMPLETELY TO, TO FILL THAT.

THERE'S NO BACKUP. AND, AND HOW IMPORTANT THAT IS IN THESE FACILITIES IS THAT, IS THAT ALONG THE LINES THAT. YES, MA'AM. OF THE INTENT. THANK YOU. YEAH ALL RIGHT. ANY OTHER QUESTIONS I DO WANT TO ASK AND TO, FOR YOU TO HAVE KIND OF A HELP ME WITH AN ANSWER. YES, SIR. SO RESIDENTS WILL COME TO ME AND WHEN WE'RE TALKING ABOUT THE TWO DAY WATER RESTRICTION.

YES, SIR. THEY'LL SAY YOU'VE SET UP A FINANCIAL STRUCTURE SUCH THAT I PAY FOR THE WATER. I USE THE CITY AND THEN THEY USE THIS TERM MAKES MONEY. THAT'S NOT TRUE. I GET IT, BUT I'M JUST

[02:15:06]

YOU'VE SEEN THIS INFORMATION. THEY'RE PROJECTING GROWTH AT 3.4%, 4.1 FOR COMMERCIAL. THEY HAVE ONE SUPPLEMENTAL REQUEST. IT'S FOR WATER RECLAMATION TECHNICIAN. THEY ARE PROPOSING AN 11% INCREASE IN RATES FOR REVENUE SUFFICIENCY. THIS IS SOMETHING THAT THE COUNCIL TALKED ABOUT LAST YEAR. WE WENT UP 11% THIS YEAR. SO THIS IS A CONVERSATION THAT HAS BEEN ONGOING. WITH THE ONE ADDITION TO THEIR POSITIONS, THEY'LL HAVE 102 TOTAL FTE. AND THAT'S THAT WATER RECLAMATION TECHNICIAN. YOU HAVE SEEN THEIR PRO FORMA, BUT JUST TO POINT OUT, NOT A HUGE INCREASE IN SOME OF THEIR REVENUES OR EXPENSES, THEY'RE RUNNING PRETTY SOLID TO WHERE THEY HAVE BEEN AT ABOUT 40 MILLION IN BOTH RESOURCES. AND EXPENDITURES. DRAINAGE IS A PART OF WASTEWATER. IT'S PART OF THE FUND. SO I HAVE THEM HERE BRIEFLY. YOU'VE SEEN THIS. WE'VE TALKED ABOUT IT. THE POINT THAT I'D LIKE TO MAKE ABOUT DRAINAGE IS THAT WE'RE GOING TO BE DOING A COST OF SERVICE STUDY IN 24, 25, AND SO WE'LL BE COMING BACK AND TALKING TO YOU ABOUT THAT.

ONCE THAT STUDY IS COMPLETE, BUT THIS DIVISION HAS VERY, VERY LITTLE CHANGE. SO WHEN WE ROLL WASTEWATER AND DRAINAGE UP TOGETHER AT THE FUND LEVEL, WE'VE GOT A BEGINNING FUND BALANCE OF ABOUT 16.8. WE HAVE AN 11% INCREASE IN THE WASTEWATER RATES. WE HAVE NO CHANGE IN DRAINAGE. AND THEY ARE MEETING THEIR FUND BALANCE TARGETS. THIS IS THE LISTING OF THE WASTEWATER RATES AS THEY CHANGED. AGAIN, STEPHEN IS HERE FOR ANY DETAILED QUESTION ON THE RATES FOR WASTEWATER. SO THE TOTAL CHANGE IN WASTEWATER IS GOING TO BE ABOUT $4.10 PER MONTH FOR THE AVERAGE CUSTOMER. THAT'S A THREE QUARTER INCH METER. AND ABOUT 6000 GALLONS MONTHLY. SO MOVING ON TO SPECIAL REVENUE FUNDS. LET ME SEE IF THERE'S ANY QUESTIONS ON WASTEWATER. SORRY. ANY WASTEWATER QUESTIONS. SEEING NONE I HAVE ONE. HOPEFULLY IT DOESN'T CASCADE. SO, MY QUESTION IS HOW MUCH WATER DO WE LOSE IN SYSTEM. AND THEN TWO, HOW MUCH DO WE, AND PROBABLY MORE GERMANE TO THIS IS HOW MUCH BETTER SAID YOU EDUCATED ME ON HOW IT'S WASTEWATER IS MEASURED WHEN IT'S MEASURED. IF YOU CAN KIND OF SHARE THAT INFORMATION ON THAT, THAT FORMULA APPROACH TO THAT. OKAY SO WASTEWATER WE DON'T PHYSICALLY METER THE WASTEWATER FLOWS. WHAT WE DO IS WE LOOK AT THE WINTER DEMANDS WHICH ARE THE INSIDE USE. SO PEOPLE ARE TYPICALLY USING WATER IN THEIR HOMES DURING THE WINTER MONTHS. AND THAT'S AN AVERAGE OF THREE.

AND SO WE CAN TAKE THAT THOSE FLOW RATES AND WE CAN APPLY THAT THROUGHOUT THE YEAR BECAUSE

[02:20:04]

THAT'S THE REALLY HIGH LEVEL BRIEF ANSWER. THANK YOU. AND THEN DO YOU HAVE A FEEL FOR INLINE LEAKAGE METER LOSS, ETC. INDUSTRY STANDARD IS 10% OF YOUR PRODUCTION AND WE'RE ABOUT 8% IN LOSS. THAT'S OUR OUR UNACCOUNTED FOR WATER USE. SO THAT'S LIKE WATER LINE BREAKS AND, LEAKS IN THE SYSTEM, THINGS LIKE THAT. OKAY. AND THEN LASTLY, I DO WANT TO GIVE YOU AN OPPORTUNITY TO BRAG ON YOUR EMPLOYEES. BECAUSE THEY'RE REALLY GOOD AT PUTTING FIRE HYDRANTS TOGETHER. OH, YEA.

OH, WELL. OH YES. YES. WE HAD THE, THE, THE DENTON DIVAS COMPETED IN THE TEXAS AQUA CONFERENCE AND THEY ARE REGIONAL CHAMPIONS. SO THEY THEY BEAT ALL THE TEAMS IN TEXAS. AND WE TOOK THEM TO ANAHEIM WITH US. AND THEY PLACED SEVENTH NATIONALLY. WOW. OH YEAH. AND THAT'S, THAT'S ABIGAIL, WHO IS OUR OUR COORDINATION. SHE'S OUR COMPLIANCE COORDINATOR. AND, OH, GOD. ASHLEY MCGEE, WHO IS OUR ONE OF OUR ADMINS OVER AT THE RAY ROBERTS TREATMENT PLANT.

YEAH, IT'S GREAT. IT'S FANTASTIC. IT'S AMAZING TO SEE SO THANK YOU. THANK YOU. BY THE WAY, MAYOR, YOU'RE THE ONLY COWBOY HAT I SAW IN THE EXHIBIT HALL. YEAH. AND SO HE DID A SPO.

THANK YOU. OKAY OH, SORRY. YEAH. REPRESENTATIVE FROM DISTRICT ONE I JUST HAD. THANK YOU, STEVEN? YES, MA'AM. I HAD A QUESTION ABOUT THE WATER FUND POSITION SUMMARY, AND I SEE THAT WE HAVE SUSTAINABILITY THERE. AND, IT THE NUMBERS JUST GO AWAY. IS THAT ONE OF THE POSITIONS THAT'S GOING TO GO INTO THE ENVIRONMENTAL SERVICES? THAT RIGHT THERE? NO WATER FUND POSITION, A WATER, COUNCIL MEMBER THAT'S WE CREATED A SEPARATE FUND FOR ENVIRONMENTAL SERVICES AND SUSTAINABILITY LAST YEAR. OKAY, SO THOSE POSITIONS WERE JUST MOVED OVER INTO A SEPARATE FUND. THANK YOU. THAT'S THE ONLY QUESTION THAT I HAD. OKAY. ANYONE ELSE? REPRESENTATIVE FROM DISTRICT 55422. I'M LOOKING AT THE CHART OF THE AVERAGE BILLS. YEAH. AS COMPARED TO OUR OTHER OTHER CITIES, WHAT ARE WE DOING SO MUCH MORE RIGHT THAN THEM? I WAS JUST LOOKING AT THIS CHART. IT LOOKS LIKE WE'RE KILLING IT. I'M. WHAT'S WHAT'S DIFFERENT ABOUT US? IS IT BECAUSE WE'RE PULLING OFF OF TWO DIFFERENT LAKES? NO YOU KNOW, I'D HAVE TO DO A LITTLE BIT OF RESEARCH ON THAT TO GIVE YOU A WELL INFORMED ANSWER, BUT I CAN GET BACK TO YOU ON IT. NO, I DON'T, I'M IT WAS JUST IT WAS JUST CURIOUS. OKAY. AND JUST FOR ALL MY COLLEAGUES AT THE TABLE, I'M PUTTING SOME, SOME THINGS TOGETHER, AND I APPRECIATE THE CITY MANAGER FOR POINTING THIS OUT. ALTHOUGH WE ARE SEEING SEVERAL DEPARTMENTS RAISE RATES FOR THINGS, AND WE'RE ALSO SEEING THAT CORRESPOND WITH ASKING FOR MORE FTES, IT'S IMPORTANT TO, TO NOTE THAT THE YEARS PAST WHEN WE WERE NOT INCREASING RATES, WE ALSO WERE NOT HIRING A LOT. SO THAT'S, THAT GIVES ME A LITTLE BIT OF A COMFORT AS WE MOVE FORWARD TO THIS PROCESS TO KNOW WE'RE FINALLY INCREASING OUR STAFFING LEVELS SO WE CAN ACTUALLY MEET THE NEEDS OF THE RESIDENTS AS IN PAST YEARS, THAT ALSO HAS NOT NECESSARILY BEEN DONE. SO ALL RIGHT. THANK YOU. LET'S SEE. LET'S SEE. STEVEN DO THAT. DRINK MORE WATER IN MESQUITE. LET'S TAKE A LET'S LET'S TAKE A. IS THIS A GOOD PLACE TO TAKE A BREAK? IS THAT ALL RIGHT? YEAH LET'S TAKE A BREAK BECAUSE IT LOOKS LIKE IT GOES FOR A LITTLE BIT. SO AT 1137, WE'LL TAKE A BREAK, BE BACK AT 1245 AND PROBABLY 1145 45, 1145 THEN WE'RE DONE. YEAH. RIGHT 45 RIGHT. 1145 WE'LL BE BACK. AND WE CAN EAT IN HERE.

GOOD MORNING, AND WELCOME BACK TO THIS MEETING OF THE DENTON CITY COUNCIL. IT IS 1147. AND WE ARE TO THE PORTION THAT IS A SPECIAL RULE FUND REVIEW OVERVIEW. AND WE ARE. STAND BY.

I THOUGHT WE WERE. OH WE'RE HOLDING I JUST WANT TO SAY THANK YOU FOR THIS LUNCH AND ALL OF THE EFFORT OF THE ACTIVITY THAT GOES INTO MAKING THIS HAPPEN FOR US. IT'S VERY

[02:25:05]

THIS IS AN OVERVIEW OF THE STREET IMPROVEMENT FUND. PRIOR YEAR, WE HAD A USE OF RESERVES.

WE ARE ANTICIPATING A USE OF RESERVES AGAIN IN THE CURRENT YEAR. TOTAL BUDGET IS 20.5 MILLION AND RESOURCES AND EXPENDITURES FOR THE SUSTAINABILITY FRAMEWORK FUND.

WE ARE ANTICIPATING A TOTAL BUDGET OF 800,000 IN BOTH REVENUES AND EXPENDITURES. THIS FUND WAS ESTABLISHED BY ORDINANCE IN 2021. FOR THE CATALYST FUND, WE HAVE A BUDGET GOING INTO 2425 OF 1.1 MILLION. THIS FUND WAS ESTABLISHED BY ORDINANCE IN 2022 FOR THE DOWNTOWN TOURS. WE ANTICIPATE A BUDGET GOING INTO 2425 OF 978,000, IN BOTH REVENUES AND EXPENDITURES. THIS FUND IS FUNDED BASED ON PROPERTY TAXES, AND WE'VE LISTED HERE JUST FOR YOUR REVIEW, THE BASE VALUE TO THE VALUE TODAY, THE BASE VALUE BEING THE 79 AND THE VALUE TODAY, THE 230, THE US PARK TOURS. WE HAVE A BUDGET OF 1.3 MILLION IN REVENUES AND 3.5 MILLION IN EXPENDITURE. SO WE DO HAVE A USE OF RESERVES ANTICIPATED IN THIS FUND. IT HAD A BASE VALUE OF 1.19 AND HAS A 24 VALUE OF 413. THE COMMUNITY PARTNERSHIP GRANTS, OR HOT FUND, IS FUNDED WITH THE HOTEL OCCUPANCY TAX. WE HAVE THAT FUND BUDGETED GOING INTO 2425 AT 4 MILLION AND A TOTAL TOTAL REVENUES OF 4 MILLION. USE OF RESERVES BRINGING THE BALANCE TO 4.5. THIS IS A LIST OF THE PROPOSED ALLOCATIONS FROM THE COMMUNITY PARTNERSHIP COMMITTEE.

IT MATCHES TO THE BUDGET OF THE 4.5 MILLION, AND IS A 23.46% INCREASE TO COMMUNITY PARTNERS OVER THE CURRENT YEAR. MOVING TO OUR INTERNAL SERVICE FUNDS. THIS IS AN AGGREGATE LOOK AT OUR INTERNAL SERVICE FUNDS. WE HAVE SOME FUNDS THAT HAVE SOME CHANGES. MATERIALS MANAGEMENT IN PARTICULAR HAS INCREASED THEIR BUDGET. LOOKING AT SOME DELIVERIES FOR DME. AND WE'LL MOVE TO THE BOND PROGRAMS. THIS IS ALL INFORMATION YOU'VE ALREADY SEEN. SO AS YOU'RE AWARE WE'RE GOING TO ISSUE $18.9 MILLION IN 2425 TO COMPLETE THE 2019 BOND PROGRAM. WE HAVE 20 MILLION FOR ROADWAY, 18 MILLION FOR WATER AND 18 MILLION FOR WASTEWATER. FOR 2019. AND THAT WILL WRAP UP THAT PROGRAM. OOPS GOT A QUICK. THE 2023 BOND PROGRAM IN THE CURRENT YEAR WE ISSUED 53.1 MILLION. WE ANTICIPATE ISSUING 60.1 MILLION GOING INTO 2425. AND AGAIN, THESE ARE THE EXACT SAME SLIDES THAT WE HAD DISCUSSION ABOUT A COUPLE OF WEEKS AGO. WE HAVE ADDED SOME IMPACT FEE INFORMATION THAT WAS REQUESTED. THIS SLIDE IS A LOOK AT WHERE THE IMPACT FEES ARE AND WHERE THEY'RE ANTICIPATED TO BE. SO WE HAVE THE 2017 RATES LISTED HERE.

AND THEN THE 2022. OKAY. WE'LL MOVE INTO CAPITAL IMPROVEMENT. ANY ANY QUESTIONS ON THAT REPRESENTATIVE DISTRICT. YEAH. SORRY. SO IT'S A WAYS BACK, BUT, I WAS WAITING FOR THE OPPORTUNITY TO ASK ON STREETS WHEN WAS THE LAST TIME WE DID AN OCI MEASUREMENT? AND ARE WE ARE

[02:30:05]

IT DOES. IT DOES. SO WHAT WE DO WITHIN OUR ASSET MANAGEMENT SYSTEM, WE HAVE ASSUMPTIONS OF PARTICULAR MAINTENANCE TYPES. SO A RECONSTRUCTION FOR INSTANCE WILL RESET A ROAD TO 100. AND THEN WE HAVE DEGRADATION CURVES THAT WILL BASED ON THE TYPE OF PAVEMENT THE TYPE OF TRAFFIC, THE TYPE OF SOILS, IT WILL START TO DEGRADE OVER A PERIOD OF TIME. SO ON AVERAGE WE LOSE ABOUT TWO AND A HALF POINTS PER YEAR ON A STANDARD ROADWAY, AND SO WE'RE ALWAYS KIND OF KEEPING A RUNNING TOTAL OF THAT. AND THEN WHEN WE HAVE A FIRM COME IN AND DO A NEW UPDATED SYSTEM SCAN, WE TRUE UP ALL THOSE FIGURES AND RESET THOSE IN THE SYSTEM. SO IN THE PAST, WHEN WE'VE DONE THAT, TRUING, ARE WE STAYING TO THE 2 TO 3% DEGRADATION PER ANNUM, OR DO YOU REALLY SEE SOME ROADS JUST DROP, YOU SEE A LITTLE BIT, YOU SEE SOME ROADS THAT HAVE HELD UP BETTER THAN EXPECTED. YOU ALSO SEE OTHER ROADS THAT DETERIORATE FASTER THAN EXPECTED, THERE'S A NUMBER OF FACTORS WITH THAT. YOU KNOW, OBVIOUSLY YOU HAVE ENVIRONMENTAL FACTORS LIKE SOIL TYPES, GROUNDWATER. BUT YOU ALSO SEE A LOT OF CONSTRUCTION TRAFFIC. THE CITY'S, YOU KNOW, A GROWING COMMUNITY. AND THE MORE CONSTRUCTION TRAFFIC YOU HAVE ON THOSE ROADS, IT CAN CAUSE THEM TO DETERIORATE FASTER. AND SO WHEN WE PLAN MAINTENANCE, WHEN THE CAPITAL PROJECTS TEAM PLANS, CONSTRUCTION PROJECTS, THAT'S ALWAYS A FACTOR WE LOOK AT IS WHAT ARE THE CONSTRUCTION ENTRANCE AND EXITS AND ARE WE PLANNING FOR MAINTENANCE THERE? AND SOMETIMES YOU'LL SEE THOSE DEGRADATION CURVES. KIND OF SLIP WHENEVER YOU HAVE THAT TYPE OF IMPACT ON IT. I LOVE YOU. YOU'RE TELEPATHIC. YOU WENT RIGHT WHERE I WAS GOING TO GO IS WE'RE DOING ORDERS OF MAGNITUDE BETTER JOBS OF STAYING UP WITH THE STREET AND THE REPAIR CYCLE AND THE COMPLETE STREETS. AND, I MEAN, THAT'S A CLEAR PHILOSOPHY IN THE CITY OF DENTON AT ALL LEVELS. BUT WITH THAT COMES CERTAIN COSTS. AND THAT IS RUNNING ALL THESE CONSTRUCTION VEHICLES ON OUR BRAND NEW ROADS. AND THEN HOW DOES THAT AFFECT THE LIFETIME OF OUR BRAND NEW ROADS? SO I'LL BE REALLY INTERESTED IN GOING FORWARD, LIKE WHEN YOU DO THOSE ASSESSMENTS, HOW HOW THIS INCREASED SITE, FREQUENCY OF REPAIR IS, IS ACTUALLY MAYBE, YOU KNOW, WE NEED TO ADJUST OUR MODELS A LITTLE BIT. YEAH. AND I THINK ONE OF THE THINGS THAT WE DO THERE TO THAT POINT IS OUR FOCUS ON PREVENTATIVE MAINTENANCE IS MUCH, MUCH GREATER THAN IT'S EVER BEEN IN THE PAST. AND SO YOU SEE A LOT OF WORK HAPPENING ON ROADS THAT WE WOULD CLASSIFY AS GOOD OR MAYBE EVEN EXCELLENT. YOU'LL SEE CRACK SEALING, YOU'LL SEE SURFACE TREATMENTS. AND A LOT OF THAT IS TO PREP THESE ROADS AND PREVENT THAT DEGRADATION BEFORE IT HAPPENS. OKAY, I APPRECIATE THAT. YOU BET. AND MR. MY ACTUAL QUESTION IS REGARDING THE INSPECTION FEES. SO I DON'T KNOW WHO IT IS TO COVER THAT. IT SAYS IN THE IN THE FOOTNOTE, PUBLIC WORKS INSPECTION FEES ON PAGE 92 ARE NOT INCLUDED, BUT I KNOW THAT THERE'S A RENEWED INTEREST IN BEING, MORE, IN DEVELOPMENT SERVICES AND THE INSPECTION TEAM OF BEING MORE PROACTIVE AND LESS REACTIVE TO SOME OF THESE ISSUES. WHERE IS WHERE IS THAT EMPHASIS BEING PUT INTO THE BUDGET? SO TREVOR CRANE, DIRECTOR OF CAPITAL PROJECTS. SO COULD YOU REPEAT IT ONE MORE TIME? YEAH. IT'S COMPLEX. SO I KNOW ON ON SLIDE 92, WE HAD A FOOTNOTE THAT PUBLIC WORKS INSPECTION FEES ARE NOT INCLUDED IN THE DEVELOPMENT FEES. BUT I KNOW THAT THERE IS A LEADERSHIP EMPHASIS ON BEING MORE PROACTIVE ON INSPECTION AND LESS REACTIVE.

WHERE WHERE ARE WE INCLUDING THE BUDGET FOR ANY DESIRED, DIRECTION AND IMPROVING? INSPECTION? SURE. SO KIND OF TWO DIFFERENT THINGS THERE. SO WHEN WE TALK ABOUT INSPECTION FEES, THAT IS REALLY MAINLY FOCUSED ON OUR DEVELOPMENT. SO PART OF WHAT WE INSPECT FOR DEVELOPMENT IS

[02:35:04]

BUT, YOU KNOW, THAT'S A ANOTHER PART OF THAT IS TRAINING ON OUR INSPECTION, ON OUR INSPECTORS MAKING SURE THEY KNOW WHAT TO LOOK, LOOK FOR, AND TRYING TO CATCH THOSE THINGS WITH OUR CONTRACTORS WORKING THROUGH THAT KIND OF RELATIONSHIP WITH OUR CONTRACTORS SO THAT THEY SO THAT WE'RE CATCHING THINGS PRIOR TO THEM BEING PUT IN AND THEN HAVING TO TEAR THEM OUT. BUT THOSE WOULD BE IN THE CAPITAL PROJECTS BUDGETS. CORRECT. OKAY. ALL RIGHT. I APPRECIATE THAT.

THANK YOU. YES, SIR. ANY OTHER QUESTIONS. SEEING NONE. OKAY. SO LOOKING AT THE CAPITAL IMPROVEMENT PROGRAM FOR 2425, THE TOTAL FOR ENTERPRISE FUNDING BEING REQUESTED IS 319. WE CURRENTLY HAVE 314 APPROPRIATED, WHICH LEAVES A TOTAL OF 633 GOING INTO 2425 FOR ENTERPRISE FUNDS. THIS GIVES YOU A VISUAL OF THE FIVE YEAR ENTERPRISE COST BY FUND. SO WE HAVE ELECTRIC, WATER, WASTEWATER, SOLID WASTE AND AIRPORT. THIS IS THE OVERVIEW OF GENERAL GOVERNMENT THAT WE TALKED ABOUT A COUPLE OF WEEKS AGO. FOR 2425, THE NEW CAPITAL APPROPRIATIONS TOTAL 136.8 MILLION STAFF IS PROJECTING A GEO CO DEBT ISSUANCE OF 120.9 MILLION, A TRANSFER OF 7.2 MILLION FROM OPERATING 5 MILLION IN EXTERNAL FUNDING AND 3.6 MILLION FROM COST SHARING. REVIEWING THE ELECTRIC FUND, THERE HAVE BEEN NO CHANGES TO THE CAPITAL PROGRAM FOR THE ELECTRIC FUND SINCE YOU LAST REVIEWED IT, WE ARE ANTICIPATING NEW CAPITAL APPROPRIATIONS TO TOTAL 75.02 MILLION. WE'RE PROJECTING A CO DEBT ISSUANCE OF 69.82 MILLION, A TRANSFER OF 45,000 FROM OPERATING AND 5.15 MILLION FROM COST SHARING. THIS IS A SLIDE THAT LOOKS FAMILIAR TO YOU, I WILL DRAW YOUR EYE ONLY TO THE BOTTOM CORNER THERE WHERE WE HAVE OUR GRAPHIC THAT SHOWS WHAT OF. THIS AMOUNT WILL BE DEBT FUNDED, COST PARTICIPATION AND REVENUE FUNDED. MOVING ON TO THE WATER FUND FOR THE CAPITAL IMPROVEMENT PROGRAM, THERE HAVE BEEN NO CHANGES HERE AS WELL SINCE THE LAST TIME THAT YOU SAW THIS. THE NEW CAPITAL APPROPRIATIONS WILL TOTAL 130.4 MILLION. STAFF IS PROJECTING A CO OR REVENUE DEBT ISSUANCE OF 130 MILLION AND 431,000 IN VEHICLE REPLACEMENT FUNDING. THIS IS THE FIVE YEAR VIEW FOR THE WATER CAPITAL FUND AND THE LIST OF PROJECTS BY CATEGORY THAT THEY HAVE REQUESTED. AND HERE AT THE BOTTOM, YOU'LL SEE THE 130.4 MILLION THAT I JUST REFERENCED. MOVING ON. AND ANY QUESTIONS UP TO THIS POINT IN ANY OF THE CIP STUFF? OKAY, OKAY. MOVING ON TO WASTEWATER, THE 2425 NEW CAPITAL APPROPRIATIONS TOTAL 100.47 MILLION. WE'RE PROJECTING A CO REVENUE DEBT ISSUANCE OF 99.25 MILLION AND A TRANSFER OF 1.22 MILLION FROM OPERATING. THIS IS THE FIVE YEAR PROJECTION FOR WASTEWATER 2425, AGAIN AT 100.4 MILLION. AND THEN MOVING FORWAR, WE HAVE SOME INCREASES AS WE GO INTO FUTURE YEARS. MOVING ON TO SOLID WASTE AGAIN, NO CHANGES FROM WHAT YOU'VE PREVIOUSLY BEEN PRESENTED. YOUR NEW CAPITAL APPROPRIATIONS FOR 2425 WILL TOTAL 12.99 MILLION. WE ARE PROJECTING A DEBT ISSUANCE OF 11.12 MILLION AND A TRANSFER OF

[02:40:02]

AND THEN WE REALLY REDUCE AFTER THAT GOING FORWARD INTO FUTURE YEARS. FOR THE FLEET FUND, THE FIVE YEAR SUMMARY PROJECTS FOR 24, 25, $8.2 MILLION IN ISSUANCE, THAT IS ALL GOING TO BE DEBT FUNDED. CAPITAL. FOR THE FACILITIES FUND, IT'S 1.7 MILLION. AND THAT, AGAIN IS ALL DEBT FUNDED CAPITAL. THIS INCLUDES CHANGES FOR ADA UPGRADES, FACILITY CONDITION MAINTENANCE, A MUNICIPAL COURT RENOVATION AND SECURITY HARDWARE UPGRADES IN THE AIRPORT. WE DO HAVE A CHANGE FROM WHAT WE HAVE LISTED HERE. WE ARE ANTICIPATING THAT WE WILL POTENTIALLY NOT COMPLETE THIS INFRASTRUCTURE PROJECT AS IT'S LAID OUT HERE. SO WHEN WE REVIEW THAT AND COME BACK TO YOU AGAIN, WE MAY JUST BRING BACK THIS ONE SLIDE IN THAT, REVIEW BACK FOR TECHNOLOGY SERVICES, NO CHANGES. 4.7 MILLION FOR 2425. AND THAT WILL BE 100% DEBT FUNDED. STREETS, TRAFFIC AND DRAINAGE? NO CHANGES FROM WHAT YOU'VE SEEN PREVIOUSLY FOR 24, 25, 33.3 MILLION. THAT WILL BE A MIXTURE OF DEBT, FUNDING, REVENUE, FUNDING AND SOME EXTERNAL FUNDING. THIS IS A LIST OF THE PROJECTS THAT ARE BEING PROPOSED FOR 2425 FOR STREETS, TRAFFIC AND DRAINAGE.

MANY OF THESE WILL LOOK FAMILIAR TO YOU. THESE ARE IN MOST CASES. IN MANY CASES, CONTINUING PROJECTS, FOR PARKS AND RECREATION FOR 2425, THEY ARE ANTICIPATING A $2.6 MILLION CIP.

THE FUNDING FOR THEIR CIP IS A LITTLE BIT MORE DIVERSIFIED THAN SOME OF OUR OTHER FUNDS, AND I HAVE THAT DIVERSIFICATION LISTED HERE. AND THIS IS A LIST OF THE PROJECTS ANTICIPATED IN PARKS AND REC FOR THEIR CIP, AND WHAT THEY'VE REQUESTED IN 2425. IN ENVIRONMENTAL SERVICES, WE HAVE A PROPOSED ISSUANCE OF 2 MILLION IN DEBT AND 70,000 AVAILABLE IN REVENUE. THE PROJECT LIST INCLUDES GUN RANGE CLEANUP, TOTAL ORGANIC CARBON ANALYZER, AND ION SYSTEM. AND THAT BRINGS US TO SUMMARY. OKAY THANK YOU. I, JUST INFORMATION REQUESTS REGARDING THE FLEET COULD WE HAVE A CALL OUT TO. AND I'M NOT ADVOCATING. I'M JUST WONDERING, WANTING TO BE AT A BETTER ANSWER. QUESTIONS. RIGHT. SURE WHERE WE ARE FOR A NUMBER OF VEHICLES THAT ARE 100% ELECTRIC, HYBRID, JUST KIND OF IF WE CAN TRACK THAT, THAT THAT QUESTION COMES UP PERIODICALLY. SO JUST A TRACKING OF THAT OR JUST TO KNOW NOTHING, NOTHING. I DON'T THAT'S NOT, YOU KNOW, COST AND ALL THOSE OTHER THINGS ARE COMPELLING. BUT BUT I WANT TO UNDERSTAND WHERE WE ARE. AND THEN, SIMILARLY LEASE TO OWN PERCENTAGES BECAUSE AS WE'RE TALKING, I KNOW CITY MANAGER TALKED ABOUT POTENTIALLY LOOKING AT SOME LEASE OPTIONS AND THE VALUE THEREOF. AND SO IT JUST KIND OF BE GOOD TO HAVE SOME HISTORICAL DATA ON WHERE WE ARE TO ASSOCIATE WITH THE COST, AS WE CONSIDER THAT TRANSITION. THEN YOU TOUCHED ON IT. LASTLY, THE AIRPORT, I'D BE I'D BE CURIOUS IF STAFF HAS I KNOW THERE'S BEEN CONVERSATIONS ABOUT PARKING, NEEDS, AND THERE'S A STUDY GOING ON AND ALL THOSE THINGS. I WONDER IF THERE'S CONSIDERATION VALUE IN THAT AREA. I KNOW THEY DID A STUDY, BUT JUST WANT TO KNOW IF WE'VE CONSIDERED PARKING THERE. I KNOW WE HAVE TO DO THE CLEANUP, BUT IF WE CONSIDER PARKING AND MAYBE SOME SORT OF SHUTTLE SERVICE TO THE AIRPORT, SINCE, FIRE STATION NINE TOOK UP ALL OUR PARKING SPACES, NO, NO, BUT JUST FORWARD LOOKING AS THEY GET BUSIER, YOU KNOW, A LOT OF THOSE INSTITUTIONS ARE BIG, ARE GETTING GROWING. AND SO I KNOW WE'VE HAD THAT CONVERSATION. I JUST CAN'T RECALL, WHERE WE ARE ON THAT DISCUSSION. OH, PERFECT. I WASN'T SURE IF IT'S HERE WITH THE AIRPORT. YEAH, I THOUGHT I WASN'T SURE IF YOU LEFT OR. I MAY HAVE MISSED THE MIDDLE PART OF YOUR QUESTION, THOUGH, MAYOR.

[02:45:06]

SO WHEN THAT COMES BACK, JUST THAT PREVIEW, THAT WOULD BE THE QUESTION I'D HAVE IS DID WE CONSIDER IT FOR THESE NEEDS? AND THAT STUDY BECAUSE THE STUDY GOES BEYOND OBVIOUSLY BEYOND THE AIRPORT PROPER. DOES IT CAPTURE THAT AREA OR DOES IT JUST LOOK AT THE AIRPORT PROPER AND SAY, HERE'S SOME GAPS THAT YOU MAY WANT TO FILL ELSEWHERE. IT DOES CAPTURE THE SURROUNDING LAND.

AND IF THERE'S AN OPPORTUNITY THERE, IT WILL. IT WILL MENTION THAT AND POSSIBLY PROVIDE SOME RECOMMENDATIONS. ABSOLUTELY. OKAY. GREAT THANK YOU VERY MUCH. THAT'S ALL I HAD. AND THEN LASTLY, WHEN WE YOU TALKED ABOUT PARKS AND THE AQUATICS AND I KNOW THE CITY MANAGER TALKED ABOUT POTENTIALLY LOOKING AT FUNDING AND USE CASE AND MANAGEMENT FOR THE OUTDOOR WATER PARK. IS THAT RIGHT? THE NATATORIUM. OKAY. GOT IT. AND SO I'M ASSUMING AS THOSE CONVERSATIONS AND THINGS DEVELO, THOSE NUMBERS MAY CHANGE OR THOSE NEEDS MAY CHANGE. I WOULD JUST WANT US TO HAVE THAT TOP OF MIND AS WE'RE STRUCTURING BUDGET SO THAT WE'RE YOU KNOW, IF WE'RE NOT GOING TO KNOW FOR A WHILE AND IT MAKES SENSE TO INVEST, GREAT. IF WE'RE IF IT'S SOMETHING THAT DOESN'T MAKE SENSE TO INVEST IN UNTIL WE FIGURE OUT OUR NEXT STEPS, THEN THEN GREAT TO. YEAH. SO I JUST WANT TO MAKE SURE IT'S TOP OF MIND. SO CITY MANAGER YES. RIGHT NOW IT'S GOING TO BE A TEAM OF THE CITY WITH THE SCHOOL DISTRICT LOOKING AT DRAFTING AN ITEM FOR TO GO OUT TO LOOK AT, SOMEONE ELSE RUNNING AND OPERATING BOTH THE, THE WATER PARK AS WELL AS THE NATATORIUM, OUTSOURCING IT SO THAT WE WOULDN'T BE ABLE TO, KNOW ANYTHING TILL NEXT BUDGET YEAR. BUT THE GOAL IS TO HAVE A PLAN FOR THE 25, 26 YEAR. OKAY YEAH.

SO AS LONG AS THAT CONVERSATION INFORMS WHAT WE DO TO, YOU KNOW, BECAUSE I DON'T WANT TO TAKE GOOD MONEY AND PLACE IT, IN AN AREA THAT WE'RE NOT GOING TO, YOU KNOW, IT'S NOT BEST USE TO WHAT YOU KNOW, YOU KNOW, THAT YET. SO JUST LOOK FORWARD TO YOUR FEEDBACK ON THAT. SO THOSE ARE THE QUESTIONS I HAD. ANY OTHER QUESTIONS REPRESENTATIVE FROM DISTRICT TWO. COME ON.

THERE WE GO. YEAH. THANK YOU, MR. MAYOR, THE I NOTICED ON THE ON SLIDE 116, AND FOR PARKS AND REC, WE HAVE SORT OF AN ON AGAIN, OFF AGAIN PROJECTION OF LAND ACQUISITION, BUT WE ALL KNOW THAT THAT A COUPLE THINGS. ONE, LAND ACQUISITION IS AN ONGOING EFFORT. AND TWO, NOT EVERYTHING IS A 915, NINE, 16 SOURCE FUNDING. SO WHAT'S WHAT'S THE PLAN FOR? I KNOW THERE'S JUST NOTHING FOR THE NEXT YEAR. AND THEN IN 27, 28, THERE'S ANOTHER NOTHING, WHAT'S WHAT'S THE PLAN FOR. BECAUSE THERE'S ONGOING DEMAND FOR LAND ACQUISITION FOR THE VARIOUS PROGRAMS THAT IT SORT OF IS NEVER ENDING. SO HELP ME UNDERSTAND THE PLAN HERE. GARY PARK AND PARKS AND RECREATION. SO LAND ACQUISITION, WE STILL HAVE SOME MONEY LEFT OVER THAT WE WERE WORKING ON ACQUISITION OF LAND ON THE SOUTH SIDE OF DENTON. SO WE HAVE THAT FROM THE 2019 BOND PROGRAM. OKAY. SO WE'RE TRYING TO GET THAT WRAPPED UP, AND THEN FROM A LARGE PARCEL STANDPOINT, WE WOULD NEED A FUTURE BOND CONSIDERATION, AS PROPERTY COME, COMES UP AND WE PURCHASED A PIECE OF PROPERTY, LAST, LAST MEETING, WITH NINE, NINE, 15 FUNDING. SO IF SOMETHING COMES UP AND WE HAVE THE FUNDING IN THAT AREA, WILL WILL COME TO COUNCIL AND ADDRESS THAT AND DISCUSS THAT, WE'RE ALWAYS LOOKING FOR OPPORTUNITIES THAT MAY OPEN, A LOT OF OUR LAND ACQUISITION IS GOING THROUGH THE DEVELOPMENT PROCESS. SO WE, WE STILL GET LAND ACQUISITION

[02:50:02]

HISTORICALLY WE'VE ISSUED CODES FOR LAND ACQUISITION OUTSIDE OF THE BOND PROGRAMS. SO THAT'S OBVIOUSLY A COUNCIL DECISION, I THINK WE DID PURCHASE PROPERTY, LAST YEAR WE HAD REVENUE. WE USED REVENUE FUNDING FROM GENERAL FUND TO PURCHASE THE FIRE STATION PROPERTY, BECAUSE THAT WAS THAT CAME UP AS PART OF THE BUDGET DISCUSSION. BUT HISTORICALLY, IT'S BEEN SO IN A CIRCUMSTANCE LIKE THAT, IF I MIGHT, THAT WOULD BE THE PRINCIPAL AND THE DEBT SERVICE ON SOMETHING LIKE THAT WOULD COME OUT OF THE GENERAL FUND. IT WOULD COME OUT OF THE, THE DEBT SERVICE PORTION OF THE TAX RATE THAT THE DEBT SERVICE PART. BUT THE PRINCIPAL WOULD ALSO COME OUT OF THE DEBT SERVICE, THE PRINCIPAL AND INTEREST WOULD COME OUT OF THE DEBT SERVICE.

ALL RIGHT. THANK YOU FOR THE EDUCATION. I APPRECIATE IT, BOTH OF YOU. ANY OTHER QUESTIONS? OKAY OKAY. ON THE WRONG DIRECTION. I DON'T THINK THERE'S EVER ANY MORE? YEAH. NO, I WAS LIKE, I DON'T HAVE THOSE. RIGHT? BUT I GOT IT. YEAH, I WAS GOING THE WRONG WAY. THAT'S WHY YOU DIDN'T HAVE THOSE, RIGHT? RIGHT. THIS IS ABOUT ALL THAT I HAVE. SO JUST IN SUMMARY OF WHAT WE REVIEWED TODAY, WE WENT OVER A GENERAL OVERVIEW OF THE BUDGET. WE TALKED ABOUT THE ECONOMY, THE GENERAL FUND, ENTERPRISE, SPECIAL REVENUE, THE COMMUNITY PARTNERSHIP GRANTS, INTERNAL SERVICE FUNDS. THE BOND PROGRAMS AGAIN PROVIDED THE IMPACT FEE INFORMATION THAT HAD BEEN REQUESTED AND REVIEWED VERY QUICKLY. THE CAPITAL IMPROVEMENT FUND AS OR CAPITAL IMPROVEMENT PROGRAM, AS WE TALKED AT LENGTH ABOUT THAT JUST A COUPLE OF WEEKS AGO. SO NEXT STEPS WE WILL COME BACK AND PRESENT TO YOU AGAIN TO ANSWER YOUR QUESTIONS AND TO FOLLOW UP. WE HAVE A MEETING ON THE 20TH, SO WE'LL SEE YOU BACK AT THAT POINT IN TIME. ALSO ON THE 20TH, WE WILL BE LOOKING AT LET ME GET MY PAPER. SO I HAVE IT EXACTLY RIGHT. THE INTENTION TO SET A TAX RATE. SO BY STATE LAW THE LAW ASKS THAT THIS GROUP SET ITS INTENTION TO SET A TAX RATE. SO WE WILL GO THROUGH THAT PROCESS WHEN WE MEET ON THE 20TH. OKAY. ANY OTHER QUESTIONS FOR STAFF? SEEING NONE AT 1216. THAT CONCLUDES OUR MEETING. ALL RIGHT

* This transcript was compiled from uncorrected Closed Captioning.