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MORNING ON AUGUST 8TH, 2026, I'LL CALL THIS MEETING OF THE DENTON CITY COUNCIL TO ORDER.
IT IS OUR BUDGET WORKSHOP. WE HAVE TWO WORK SESSIONS. ONE IS ABOUT ETHICS TRAINING AND THEN
[A. ID 26-1162 Receive training and hold a discussion regarding the City of Denton Code of Ordinances Chapter 2, Article XI (Ethics). [Estimated Presentation/Discussion Time: 30 minutes]]
THE OTHER IS TO GO OVER THE BUDGET. SO WE'LL GO ON TO OUR FIRST AGENDA ITEM, WHICH IS ID 26-1162 AND THE TIME IS 830. RECEIVE TRAINING. HOLD A DISCUSSION REGARDING THE CITY OF DENTON CODE OF ORDINANCE ORDINANCES, CHAPTER TWO ARTICLES 11. ETHICS.>> MAYOR AND COUNCIL, MADISON ROSHA, DENTON CITY AUDITOR. I'M ALSO THE STAFF LIAISON TO THE BOARD OF ETHICS. SO THAT'S WHY I'M HERE TODAY TO PRESENT YOU WITH YOUR ANNUAL REQUIRED ETHICS ORDINANCE TRAINING AS WE GO THROUGH THIS. IF YOU HAVE QUESTIONS, PLEASE STOP ME, BUT I'M GOING TO TRY TO BLAST US ON THROUGH BECAUSE I KNOW WE GOT A LONG DAY TODAY. SO, SO TODAY WE'LL BE COVERING ONE. THE ETHICAL EXPECTATIONS LAID OUT BY THE CITY'S ETHICS ORDINANCE, THE ORDINANCE TWO, THE ORDINANCES, MANDATES AND PROHIBITIONS OR ESSENTIALLY WHAT IT REQUIRES. THREE HOW CITY OFFICIALS SUBJECT TO THE ORDINANCE, INCLUDING THE CITY COUNCIL, CAN REQUEST CLARIFICATION ON ITS APPLICATION. AND FOR A QUICK OVERVIEW OF WHAT HAPPENS IF AN ETHICS COMPLAINT IS SUBMITTED AGAINST YOU AS A CITY OFFICIAL.
SO I'M GOING TO DIVE RIGHT IN TO BEGIN. THE CITY OF ETHICS ORDINANCE WAS ADOPTED IN 2018 AND WAS MOST RECENTLY AMENDED IN 2025. THE ETHICS CODE IS INTENDED TO FOSTER AN ENVIRONMENT OF INTEGRITY FOR THOSE THAT SERVE THE CITY OF DENTON AND ITS RESIDENTS BY ENSURING THAT DECISION MAKERS PROVIDE RESPONSIBLE STEWARDSHIP OF CITY RESOURCES AND ASSETS, AND PROVIDING BEHAVIORAL GUIDELINES AND REQUIREMENTS. THE KEY GOAL OF THE ETHICS ORDINANCE IS TO FURTHER THE PUBLIC'S TRUST IN THOSE WHO GOVERN THEIR COMMUNITY. MORE SPECIFICALLY, THE ETHICS ORDINANCE OUTLINES SIX ASPIRATIONAL EXPECTATIONS.
THESE EXPECTATIONS CANNOT BE USED AS THE BASIS OF AN ETHICS COMPLAINT, BUT THEY ARE INTENDED TO GUIDE CITY OFFICIALS IN CARRYING OUT THEIR DUTIES. THEY INCLUDE CONDUCTING YOURSELF IN A MANNER THAT FOSTERS PUBLIC TRUST, PERFORMING YOUR DUTIES WITH PERSONAL AND ORGANIZATIONAL INTEGRITY, AVOIDING BEHAVIOR THAT MIGHT CALL YOUR MOTIVES INTO QUESTION AND ERODE PUBLIC CONFIDENCE. PLACING THE INTERESTS AND CONCERNS OF RESIDENTS ABOVE YOUR OWN. VALUING HONESTY, TRUSTWORTHINESS, DILIGENCE, OBJECTIVITY, FAIRNESS, DUE PROCESS, EFFICIENCY AND PRUDENCE, AND BALANCING TRANSPARENCY WITH THE DUTY TO PROTECT PERSONAL PRIVACY AND PRESERVE ANY CONFIDENTIAL INFORMATION THAT YOU'VE BEEN ENTRUSTED WITH. WHILE THE REST OF THIS TRAINING WILL FOCUS ON SPECIFIC BEHAVIORS THAT CITY OFFICIALS MUST COMPLY WITH, THIS IS THE MOST IMPORTANT SECTION OF THE ETHICS ORDINANCE. IF YOU EVER FIND YOURSELF QUESTIONING IF A SPECIFIC ACTION OR INACTION MIGHT BE ETHICAL, FIRST, ASK YOURSELF IF IT WOULD ALIGN WITH THESE EXPECTATIONS. IT IS IMPORTANT TO REALIZE THAT THESE EXPECTATIONS ARE NOT ONLY FOCUSED ON THE WAY THINGS ARE, BUT ALSO ON HOW THEY APPEAR. CITY OFFICIAL HAS A POSITION OF PRIVILEGE WITHIN THEIR COMMUNITY, AND THEY MUST THAT THEY MUST RESPECT. SERVING YOUR COMMUNITY AS A CITY OFFICIAL IS AN HONOR THAT REQUIRES INTEGRITY AND DEDICATION. AND GENERAL, YOU CAN THINK ABOUT AN ETHICS CODE AS A STOPLIGHT AND SOME INSTANCES. THE CODE CLEARLY PROHIBITS SPECIFIC BEHAVIOR OR CREATES A RED LIGHT. HOWEVER, IN OTHER AREAS, THE CODE CREATES BROADER PROHIBITIONS OR YELLOW LIGHTS. YELLOW LIGHTS COMMUNICATE THAT A CITY OFFICIAL SHOULD THOUGHTFULLY AND CAUTIOUSLY CONSIDER IF THE ACTION OR INACTION IS ETHICAL BASED ON THE CITY'S EXPECTATIONS. AS THEY PROCEED. THROUGHOUT THIS PRESENTATION, I'LL BE CALLING OUT WHICH PARTS OF THE CODE ARE RED LIGHTS VERSUS YELLOW LIGHTS TO HELP PROVIDE GUIDANCE. NOW THAT WE'VE COVERED THE BASICS OF THE CITY'S ETHICAL EXPECTATIONS AND GENERAL GUIDANCE, I'M GOING TO DIVE INTO MORE SPECIFICS. SO ETHICS ORDINANCE INCLUDES THREE MANDATES AND NINE PROHIBITIONS THAT COVER DIFFERENT ACTIONS OR BEHAVIORS THAT CITY OFFICIALS MAY TAKE. BUT THERE IS MORE DETAIL AVAILABLE IN THE ETHICS ORDINANCE. IF YOU HAVE ADDITIONAL QUESTIONS AND YOU CAN ALWAYS REACH OUT TO ME AS WELL, BEGINNING WITH THE MANDATES, THE ETHICS ORDINANCE REQUIRES THAT CITY OFFICIALS DISCLOSE CERTAIN BUSINESS RELATIONSHIPS IF THEY HAVE A PENDING MATTER, SPECIFICALLY, IF A BUSINESS ENTITY WITH A PENDING MATTER IS OWNED BY A CITY OFFICIALS PARTNER, THE CITY OFFICIAL MUST DISCLOSE THIS RELATIONSHIP TO THE CITY SECRETARY AND CITY AUDITOR. AT LEAST ONE BUSINESS DAY BEFORE THE MEETING, WHERE THE PENDING MATTER WILL BE DELIBERATED. ALL DISCLOSURES WILL BE PROVIDED TO THE RELEVANT BODY BEFORE THE DELIBERATIONS AND AND THIS DISCLOSURE REQUIREMENT IS A YELLOW LIGHT IN THE CODE, AS EVEN THOUGH CITY OFFICIALS ARE ALLOWED TO DELIBERATE ON THESE MATTERS BY THE ETHICS ORDINANCE, IT CALLS OUT THAT THERE MAY BE A RISK THAT THIS TYPE OF BUSINESS INTEREST MAY RECEIVE UNFAIR TREATMENT FROM RELATED CITY OFFICIALS, OR COULD COULD BE PERCEIVED THAT WAY. IN ADDITION, IT REQUIRES THAT CITY OFFICIALS COMPLY WITH ANY FINANCIAL DISCLOSURES REQUIRED BY TEXAS STATE LAW AND THAT CITY OFFICIALS REPORT ANY PERSONS THAT THEY KNOW HAVE VIOLATED THE CITY'S ETHICS ORDINANCE. THESE MANDATES ARE RED LIGHTS, AND NOT REPORTING A KNOWN VIOLATION IS ITSELF CONSIDERED TO BE A VIOLATION OF THE ORDINANCE. ANY QUESTIONS ON THESE? I KNOW THE THE BUSINESS
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DISCLOSURE ONE IS A LITTLE COMPLICATED TO UNDERSTAND SOMETIMES, BUT. YEAH.>> ANY QUESTIONS? >> GREAT. ALL RIGHT. ON TO THE PROHIBITION. THE PROHIBITIONS.
SO FIRST, THE BIG ONE CONFLICT OF INTERESTS. TO BEGIN, IT'S IMPORTANT TO NOTE THAT CONFLICTS OF INTEREST ARE A NATURAL PART OF BEING A MEMBER OF A COMMUNITY. THE ETHICS ORDINANCE DOES NOT PROHIBIT A CITY OFFICIAL FROM HAVING CONFLICTS OF INTEREST, BUT INSTEAD REQUIRES THAT CITY OFFICIALS BE TRANSPARENT WHEN A CONFLICT OF INTEREST ARISES AND TAKE STEPS TO ENSURE THAT THEIR THEIR CONFLICT OF INTEREST DOES NOT INAPPROPRIATE INFLUENCE THE BUSINESS OF THE CITY. THE CITY'S ETHICS ORDINANCE WAS RECENTLY AMENDED TO DEFINE CONFLICT OF INTEREST AS A SITUATION IN WHICH PERSONAL AND OR FINANCIAL CONSIDERATIONS ACTUALLY HAVE INFLUENCED OR COMPROMISED, OR ARE REASONABLY CERTAIN TO INFLUENCE OR COMPROMISE THE JUDGMENT OR ACTIONS OF A CITY OFFICIAL WHEN ACTING IN THEIR OFFICIAL CAPACITY. CONFLICTS OF INTEREST ARISE WHEN CITY OFFICIALS IN THEIR OFFICIAL CAPACITY ACT, OR FAIL TO ACT IN WAYS THAT THEY KNOW OR SHOULD KNOW, ARE LIKELY TO IMPACT THE PERSONAL OR FINANCIAL INTERESTS OF THE FOLLOWING IN A WAY THAT'S NOT SHARED WITH A SUBSTANTIAL SEGMENT OF THE CITY'S POPULATION. SO THERE ARE THREE KEY PIECES TO THIS PROHIBITION.
ONE, WHEN A CONFLICT ARISES, TWO KIND OF WHO CREATES THAT CONFLICT OR WHEN, AND THEN THREE, WHAT CREATES A CONFLICT OF INTEREST. SO FIRST, THE ETHICS ORDINANCE OUTLINES THAT A CONFLICT OF INTEREST ARISES WHEN A CITY OFFICIAL IS ACTING IN THEIR OFFICIAL CAPACITY OR WHEN THEY'RE DELIBERATING. SO DELIBERATIONS INCLUDE DISCUSSIONS AT THE DAIS, VOTING AS A MEMBER OF THE CITY COUNCIL OR BOARD OF COMMISSION PRESENTATIONS AS A MEMBER OF THE AUDIENCE BEFORE THE CITY BOARD, CITY COUNCIL OR A BOARD OR COMMISSION, AND THEN CONVERSING OR CORRESPONDING WITH OTHER CITY OFFICIALS OR CITY STAFF. SO CITY OFFICIALS EXIST TO DELIBERATE. SO THIS IS A GREEN LIGHT, RIGHT? THIS IS WHAT YOU SHOULD BE DOING AS A CITY OFFICIAL. HOWEVER, YOU SHOULD BE AWARE THAT DELIBERATIONS ARE WHEN CONFLICTS OF INTEREST CAN ARISE. SO IF YOU ARE TAKING ONE OF THESE ACTIONS, YOU NEED TO DETERMINE IF WHO AND WHO. IF THE WHO AND WHAT ELEMENTS OF A CONFLICT OF INTEREST ARE MET BEFORE PROCEEDING. SO SECOND, THE ETHICS ORDINANCE OUTLINES THAT A CONFLICT OF INTEREST ARISES WHEN A CITY OFFICIAL DELIBERATES AN ACTION OR INACTION THAT MAY IMPACT CERTAIN ORGANIZATIONS, PEOPLE, OR PROPERTY. SPECIFICALLY, A CONFLICT OF INTEREST MAY ARISE IF THE ACTION OR INACTION INVOLVES A BUSINESS ENTITY THAT YOU, AS A CITY OFFICIAL, OWN AT LEAST FIVE 5% VOTING SHARES OR STOCK IN, OR AT LEAST $600 OF THE FAIR MARKET VALUE, OR RECEIVE $600 IN INCOME, OR SERVE AS A DIRECTOR, OFFICER, OR POLICYMAKER UNLESS YOU'RE APPOINTED BY THE CITY COUNCIL OR HAVE RECEIVED, SOLICITED OR ACCEPTED AN OFFER OF EMPLOYMENT OR BUSINESS OPPORTUNITY IN THE PAST 12 MONTHS, OR IT'S A PERSON THAT YOU HAVE, JUST A PERSON THAT YOU'VE SOLICITED, RECEIVED, OR ACCEPTED AN OFFER OF EMPLOYMENT FROM, OR IT'S REAL PROPERTY THAT YOU OWN AT LEAST $600 OF THE FAIR MARKET VALUE OF, OR A NONPROFIT CORPORATION OR UNINCORPORATED ASSOCIATION THAT YOU SERVE ON THE BOARD OR COMMITTEE OF. AS IF YOU HAVE A RELATIVE THAT HAS ONE OF THESE INTERESTS, YOU ARE ALSO CONSIDERED TO HAVE THAT INTEREST AS WELL. AND RELATIVE IS DEFINED FAIRLY BROADLY TO THE THIRD DEGREE. PLEASE ASK ME IF YOU HAVE QUESTIONS. AND THEN IF YOU KNOW YOU WILL BE DELIBERATING AN ACTION OR INACTION THAT IMPACTS ONE OF THESE INTERESTS. THIS IS A YELLOW LIGHT, AND IT'S RECOMMENDED THAT YOU REQUEST AN ADVISORY OPINION FROM THE BOARD OF ETHICS BEFORE PROCEEDING.
THEN, THIRD, THE ETHICS ORDINANCE STATES THAT A CONFLICT OF INTEREST ONLY ARISES IF YOU ARE DELIBERATING AN ACTION OR INACTION THAT YOU KNOW OR SHOULD KNOW WILL AFFECT ONE OF THOSE GROUPS OF PEOPLE OR BUSINESS INTERESTS IN A WAY THAT'S NOT SHARED WITH A SUBSTANTIAL SEGMENT OF THE CITY'S POPULATION. SO THIS IS KIND OF THE BROADEST DEFINITION OF THE THREE PIECES. I'M GOING TO TRY TO PROVIDE EXAMPLES TO ILLUSTRATE THE SPECTRUM. SO ON ONE END, WHERE THERE'S CLEARLY A CONFLICT OF INTEREST, A CITY OFFICIAL VOTES TO APPROVE A CONTRACT BETWEEN THE CITY AND THEIR EMPLOYER. SO IN THAT EXAMPLE, CITY OFFICIALS DELIBERATING BY VOTING AND THE ACTION OF APPROVING THE CONTRACT WILL SIGNIFICANTLY IMPACT THE FINANCIAL INTERESTS OF THE CITY OFFICIALS EMPLOYER, SOMEONE THEY RECEIVE MORE THAN $600 FROM IN A WAY THAT'S NOT SHARED WITH A SUBSTANTIAL SEGMENT OF THE CITY'S POPULATION. ON THE OTHER END, WHERE THERE'S CLEARLY NOT A CONFLICT OF INTEREST, A CITY OFFICIAL VOTES TO APPROVE AN INCREASE TO THE CITY'S PROPERTY TAX RATE, WHILE THE CITY OFFICIAL IS DELIBERATING BY VOTING. IN THIS EXAMPLE, IT'S. AND IT IS LIKELY TO IMPACT THE FINANCIAL INTERESTS OF THE CITY OFFICIAL, ESPECIALLY IF THEY OWN REAL PROPERTY IN THE CITY.
PROPERTY TAX RATES APPLY TO ALL PROPERTIES IN THE CITY, SO THE IMPACT IS SHARED WITH A SUBSTANTIAL SEGMENT OF THE CITY'S POPULATION. SO ANY QUESTIONS ABOUT I KNOW THAT WAS A LOT ABOUT CONFLICT OF INTEREST. ANY QUESTIONS ABOUT THAT. GREAT. SO FURTHER, IT'S A
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VIOLATION OF THE ORDINANCE FOR A CITY OFFICIAL TO REPRESENT A PERSON, GROUP OR ENTITY BEFORE A CITY BOARD OR COMMISSION FOR COMPENSATION. SO YOU CAN'T GO TO THE ETHICS BOARD AND REPRESENT SOMEBODY IF YOU'RE BEING PAID TO DO THAT. AND THEN AND ALSO FORMER CITY OFFICIALS.SO THAT'S A YEAR AFTER YOU'VE LEFT THE CITY COUNCIL ARE PROHIBITED FROM PERFORMING COMPENSATED WORK ON A CITY CONTRACT OR ARRANGEMENT THAT THEY SUBSTANTIALLY PARTICIPATED IN THE NEGOTIATION AWARD OR ADMINISTRATIVE ADMINISTRATION OF THE CONTRACT, UNLESS
PARTICIPATION WAS LIMITED TO DELIBERATION. >> WITH LIMITED DELIBERATION.
>> ALL RIGHT. NEXT, THE ETHICS ORDINANCE PROHIBITS A CITY OFFICIAL OR THEIR RELATIVE FROM ACCEPTING ANY GIFT THAT MIGHT REASONABLY INFLUENCE A CITY OFFICIAL IN DISCHARGING THEIR OFFICIAL DUTIES. THIS IS A GENERAL PROHIBITION THAT ACTS AS A YELLOW LIGHT FOR CITY OFFICIALS, AND I'M NOT GOING TO GO OVER IT. BUT I DO WANT TO MENTION THERE ARE SIMILAR PROHIBITIONS IN THE TEXAS STATE CODE THAT YOU'RE NOT ALLOWED TO ACCEPT GIFTS. THE ORDINANCE DOES ALSO INCLUDE GIFT RELATED RED LIGHTS. SO SPECIFICALLY, A CITY OFFICIAL CANNOT ACCEPT A GIFT VALUED MORE THAN $50 OR MULTIPLE GIFTS, WITH A TOTAL VALUE OF MORE THAN $200. IN GENERAL, GIFT IS CONSIDERED TO BE ANYTHING OF MONETARY VALUE, SUCH AS CASH, PROPERTY SERVICES, MEALS, ENTERTAINMENT OR TRAVEL RELATED EXPENSES. IF A GIFT IS ACCEPTED, THE CITY OFFICIAL MAY REMEDY THE VIOLATION BY PROMPTLY DONATING IT OR REIMBURSING THE GIFT GIVER THE ACTUAL OR FAIR MARKET VALUE OF THE GIFT. IF A GIFT IS ACCEPTED, THE CITY OFFICIAL MUST DISCLOSE THE ACCEPTANCE AND THE REMEDY BY FILING A DISCLOSURE WITH THE CITY AUDITOR, WHICH IS ME. THE ORDINANCE DOES ALLOW CERTAIN EXCEPTIONS TO THE GIFTS PROHIBITION, MEANING THAT THESE ARE GREEN LIGHTS AND THOSE INCLUDE LAWFUL CAMPAIGN CONTRIBUTIONS, EXPENSES RELATED TO A CITY OFFICIALS TRAVEL TO A CONFERENCE OR TRAINING EVENT THAT'S CONNECTED TO CITY BUSINESS EXPENSES, RELATED TO APPEARANCES AT NONPROFIT OR COMMUNITY EVENTS RELATED TO CITY BUSINESS, COMPLIMENTARY ATTENDANCE AT FUNDRAISING EVENTS OR HOSPITALITY FUNCTIONS, COMPLIMENTARY OR PROMOTIONAL COPIES OF TRADE PUBLICATIONS OR CLOTHING ITEMS OR GIFTS THAT ARE DUE TO A PERSONAL, FAMILIAL, OR PROFESSIONAL RELATIONSHIP. REGARDLESS OF THE CITY OFFICIAL CITY RELATED DUTIES. ANY ITEMS THAT FALL UNDER ONE OF THESE EXCEPTIONS DO NOT NEED TO BE DISCLOSED. HOWEVER, CITY OFFICIAL CAN DO SO IF THEY WISH ANY GIFTS QUESTIONS. GREAT.
NEXT IS PROHIBITION OF THE ORDINANCE. FOR A CITY OFFICIAL TO MISUSE THE INFLUENCE OR INFORMATION GAINED TO. DUE TO THEIR OFFICIAL CITY POSITION. SO SPECIFICALLY, A CITY OFFICIAL MAY NOT USE THEIR INFLUENCE TO SECURE SPECIAL PRIVILEGES OR TREATMENT FOR A PERSON, GROUP OR BUSINESS ORGANIZATION BEYOND WHAT IS NORMALLY AVAILABLE, OR TO IMPLY THAT THEY CAN DO SUCH THINGS. WHILE THIS IS A SPECIFIC PROHIBITION, IT'S A YELLOW LIGHT, AS IT IS NOT MEANT TO PROHIBIT A CITY OFFICIAL FROM PROVIDING INDIVIDUALS, GROUPS OR BUSINESSES WITH INFORMATION ON HOW CITY PROCESSES WORK SO THAT THEY CAN MORE EASILY ACCESS NORMALLY AVAILABLE SERVICES. FOR THAT REASON, CITY OFFICIALS SHOULD PROCEED CAUTIOUSLY AND THOUGHTFULLY WHEN TRYING TO HELP THE PUBLIC WITH SPECIFIC CONCERNS.
SPECIFIC. SPECIFICALLY, CITY OFFICIALS SHOULD BE CAUTIOUS WHEN STATING WHAT THEY CAN DO TO ADDRESS A CONCERN THAT'S RAISED TO THEM. FURTHER, A CITY OFFICIAL MAY NOT STATE OR IMPLY THAT THEY'RE ACTING AS A REPRESENTATIVE OF THE CITY UNLESS THEY HAVE BEEN AUTHORIZED TO DO SO BY THE CITY COUNCIL, AND IT IS A VIOLATION OF THE ORDINANCE FOR A CITY OFFICIAL, EITHER CURRENT OR FORMER, TO USE CONFIDENTIAL INFORMATION GAINED THROUGH OFFICIAL CAPACITY TO ADVANCE THE PERSONAL OR PRIVATE FINANCIAL INTERESTS OF THEMSELVES OR ANYONE ELSE. THESE ARE RED LIGHTS, AS THERE'S NO INSTANCE WHERE MISREPRESENTING YOURSELF AS AN AUTHORIZED CITY REPRESENTATIVE OR USING CONFIDENTIAL INFORMATION FOR PERSONAL OR PRIVATE INTERESTS WOULD BE ETHICAL. UNDER THE CODE.
QUESTIONS ABOUT THIS SECTION. LAST OF THE PROHIBITIONS. WE'RE NOT DONE, THOUGH IT IS A VIOLATION OF THE ORDINANCE FOR A CITY OFFICIAL TO ABUSE THE CITY'S RESOURCES, OR THE POWER OR PRIVILEGES GRANTED BY THEIR OFFICIAL POSITION POSITION, SPECIFICALLY, A CITY OFFICIAL SHOULD NOT USE, REQUEST OR ALLOW THE USE OF CITY RESOURCES SUCH AS FACILITIES, PERSONNEL, EQUIPMENT, SOFTWARE OR STAFF TIME FOR PRIVATE PURPOSES, INCLUDING POLITICAL, EXCEPT TO THE EXTENT THAT THOSE ARE AVAILABLE TO OTHER RESIDENTS. WHILE THIS IS A SPECIFIC PROHIBITION, IT ALSO. IT'S ALSO A YELLOW LIGHT AS IT DOES NOT CLEARLY DEFINE THRESHOLDS AND.
THERE ARE INSTANCES WHERE CITY OFFICIAL CAN ETHICALLY USE CITY RESOURCES, RIGHT? LIKE IF YOU RENT A CITY FACILITY AND PAY THE CORRECT PRICE, ON THE OTHER HAND, IT'S A VIOLATION OF THE
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ORDINANCE FOR A CITY OFFICIAL TO HARASS OR DISCRIMINATE AGAINST A PERSON BASED ON THEIR ETHNICITY, RACE, GENDER, GENDER IDENTITY, SEXUAL ORIENTATION, MARITAL OR PARENTAL STATUS, OR RELIGION. IT'S ALSO A VIOLATION TO INTERFERE WITH ANY CITY RELATED CRIMINAL OR ADMINISTRATIVE INVESTIGATION, INCLUDING PERSUADING OR COERCING SOMEONE ELSE TO WITHHOLD THEIR COOPERATION. THESE ARE RED LIGHTS, AS THERE'S NO INSTANCE WHERE HARASSMENT, DISCRIMINATION OR INTERFERING WITH AN INVESTIGATION WOULD BE CONSIDERED ETHICAL UNDER THE CODE. SO THAT'S THE END OF THE PROHIBITIONS. ANY QUESTIONS SO FAR? ALL RIGHT. NOW WE'RE GOING TO TALK ABOUT KIND OF A FEW MORE PROCESS BASED THINGS ABOUT THE CODE. SO IF YOU EVER COME UPON A SITUATION WHERE YOU NEED ADDITIONAL GUIDANCE ABOUT THE ETHICS ORDINANCE, YOU HAVE A COUPLE OPTIONS. FIRST, IF YOU NEED JUST KIND OF DIRECTION, HELPING TO FIND A SECTION OF THE ORDINANCE THAT'S RELATED TO A PARTICULAR ISSUE OR AN ANSWER ABOUT HOW TO DISCLOSE, SUBMIT DISCLOSURES OR COMPLAINTS, YOU CAN REACH OUT TO ME, THE CITY AUDITOR. I CAN HELP YOU KIND OF WITH THE PROCESS PIECES. SECOND, IF YOU HAVE A PERSONAL ATTORNEY, THEY MAY BE ABLE TO PROVIDE YOU WITH AN INTERPRETATION OF THE ETHICS ORDINANCE SO THAT YOU TO HELP YOU DECIDE IF YOU NEED TO RECUSE YOURSELF OR NOT. AND AGAIN, GIVEN SITUATION. AND FINALLY, YOU CAN REQUEST THAT THE BOARD OF ETHICS ISSUE AN ADVISORY OPINION, WHICH IS INTENDED TO ANSWER A QUESTION ABOUT COMPLIANCE WITH THE ETHICS ORDINANCE IN A PARTICULAR SITUATION. THE BIGGEST ADVANTAGE OF AN ADVISORY OPINION IS THAT A CITY OFFICIAL CAN USE IT AS AN AFFIRMATIVE DEFENSE TO A SUBMITTED ETHICS COMPLAINT IF THEY RELIED UPON IT IN GOOD FAITH TO RECEIVE AN ADVISORY OPINION, A CITY OFFICIAL MUST SUBMIT THE REQUEST IN WRITING TO THE CITY AUDITOR. RIGHT NOW, YOU CAN JUST SEND ME AN EMAIL THAT INCLUDES RELEVANT DETAILS OF THE SITUATION IN QUESTION. I THEN COMMUNICATE THE REQUEST TO THE BOARD OF ETHICS CHAIR, WHO ASSIGNS IT TO A PANEL OF THREE BOARD OF ETHICS MEMBERS FOR REVIEW, AND THE PANEL HAS 30 DAYS TO ISSUE THE ADVISORY OPINION ONCE THE REQUEST IS RECEIVED. ANY QUESTIONS ABOUT ADVISORY OPINIONS? COOL. WE'RE ALMOST DONE, Y'ALL. FINALLY, THE BOARD OF ETHICS IS PRIMARY FUNCTION IS TO PROCESS ETHICS COMPLAINTS. THERE ARE FOUR PHASES OF THE ETHICS COMPLAINT PROCESS THAT I'LL BRIEFLY RUN THROUGH, AND THERE'S ADDITIONAL INFORMATION ABOUT THESE. AND ON THE BOARD OF ETHICS CITY WEB PAGE. OR YOU CAN REQUEST HAVE QUESTIONS DIRECTED TO ME. SO FIRST, INITIATION. DURING THIS PERIOD, AN INDIVIDUAL SUBMITS AN ETHICS COMPLAINT USING THE PRESCRIBED FORM TO THE CITY AUDITOR. THIS COMPLAINT FORM SHOULD BE ACCOMPANIED BY ANY EVIDENCE SUCH AS IMAGES, VIDEOS, OR DOCUMENTATION THAT THE COMPLAINANT HAS TO SUPPORT THEIR ALLEGATIONS. EXCUSE ME. IT MUST BE SWORN TO IN FRONT OF A NOTARY. THE CITY AUDITOR THEN DETERMINES IF THE ETHICS COMPLAINT IS ADMINISTRATIVELY COMPLETE. BASICALLY, DID THEY FILL OUT THE FORM CORRECTLY BUT DOES NOT MAKE ANY JUDGMENT ON THE COMPLAINTS MERITS? IF A COMPLAINT IS ACCEPTED, IT'S FORWARDED TO THE COMPLAINANT, RESPONDENT AND THE BOARD OF ETHICS CHAIR, WHO THEN ASSIGNS IT TO A PRELIMINARY ASSESSMENT PANEL. DURING THE PRELIMINARY ASSESSMENT PHASE, A PANEL OF THREE BOARD OF ETHICS MEMBERS REVIEWS THE SUBMITTED ETHICS COMPLAINT AND DETERMINES IF IT IS ACTIONABLE OR BASELESS. A COMPLAINT IS ACTIONABLE IF, ON ITS FACE, THE BEHAVIORS ALLEGED IN THE COMPLAINT WOULD CONSTITUTE A VIOLATION OF THE ORDINANCE. THE PANEL MAY ALSO RECOMMEND THAT A HEARING BE HELD TO DETERMINE IF A COMPLAINT IS FRIVOLOUS, INSTEAD OF DETERMINING IF IT'S ACTIONABLE OR BASELESS, AND BASICALLY, THEIR JOB AT THAT POINT IS TO LOOK AT JUST WHAT'S IN THE COMPLAINT, NOT LOOK AT IF THERE'S SUFFICIENT EVIDENCE, BUT JUST IF WHAT IS ALLEGED WOULD BE A VIOLATION. DO DO, DO. IF THEY. THE OUTCOME OF THE PRELIMINARY ASSESSMENT IS COMMUNICATED TO THE COMPLAINANT AND THE RESPONDENT BY THE CITY AUDITOR, AND THEN THE COMPLAINT.IF THE COMPLAINT IS DETERMINED TO BE BASELESS OR WOULD NOT BE A VIOLATION, EVEN IF WHAT WAS TRUE IS ALLEGED, IF WHAT WAS ALLEGED IS TRUE, THE PROCESS STOPS. BUT IF IT'S FOUND TO BE ACTIONABLE, THEY PROCEED TO A HEARING. SO DURING THE HEARING PHASE, THE BOARD OF ETHICS SCHEDULES AN EVIDENTIARY HEARING AND MAY REQUEST ADDITIONAL DOCUMENTARY EVIDENCE OR ISSUE SUBPOENAS TO REQUIRE INDIVIDUALS TO TESTIFY, THE COMPLAINANT MUST ATTEND AND VERIFY AND TESTIFY AT THIS HEARING, AND MAY ALSO PRESENT ANY ADDITIONAL EVIDENCE THAT THEY'VE GATHERED. IN ADDITION, THE RESPONDENT OR THE CITY OFFICIAL MAY PROVIDE TESTIMONY AND EVIDENCE FOR THE BOARD'S CONSIDERATION. BOTH THE COMPLAINANT AND RESPONDENT HAVE A RIGHT TO BE REPRESENTED BY LEGAL COUNSEL AT THE EVIDENTIARY HEARING, AND BASED ON THE HEARING, THE BOARD WILL DETERMINE IF A VIOLATION OF THE ORDINANCE HAS OCCURRED AND IF SO, THEY MAY ISSUE A SANCTION. ONCE THE BOARD HAS DECIDED ON AN ETHICS COMPLAINT. THE COMPLAINANT AND RESPONDENT BOTH HAVE FIVE BUSINESS DAYS TO SUBMIT ANY NEW EVIDENCE AND REQUEST A RECONSIDERATION IN WRITING WITH THE CITY AUDITOR. IF A RECONSIDERATION REQUEST IS
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RECEIVED, THE BOARD OF ETHICS CHAIR REVIEWS IT AND UNILATERALLY DETERMINES IF A NEW HEARING IS WARRANTED BASED ON THE ADDITIONAL EVIDENCE. SO THAT'S THE VERY BRIEF VERSIONOF ETHICS COMPLAINT PROCESS. QUESTIONS. >> QUESTIONS? YES.
COUNCILMEMBER JESTER SUBMITTED. >> THANK YOU VERY MUCH. THANK YOU. WHEN DOES THE SUBMITTED
COMPLAINT BECOME PUBLIC? >> WHEN IT'S PLACED ON AN AGENDA FOR THE PRELIMINARY
ASSESSMENT. SO SO. >> LIKE UNDER THE BOARD OF ETHICS ASSIGNED PRELIMINARY
PANEL AT THAT POINT. >> YEAH. SO WE BASICALLY WE GO DOWN THROUGH HERE. ONCE IT GETS ASSIGNED, AT SOME POINT, AN AGENDA IS POSTED BASICALLY FROM THIS BOX TO THIS BOX. AND
THAT'S WHEN IT BECOMES PUBLIC. >> OKAY. JUST CURIOUS. THANK YOU SO MUCH. YEP.
>> YES. COUNCILMEMBER HOLLAND. >> YOU MENTIONED THAT THE COMPLAINANT CAN BE A RESPONDENT, I GUESS CAN BE REPRESENTED BY LEGAL COUNSEL. THAT'S CORRECT. CAN IT BE CAN THAT PERSON BE
REPRESENTED BY A NON ATTORNEY? NO. >> THAT WAS A CHANGE WE MADE
RECENTLY. I THINK IN 2025. >> ANYTHING ELSE? >> OKAY.
>> OKAY. WE'RE ALMOST DONE Y'ALL. SO IF DURING THE EVIDENTIARY HEARING, THE BOARD OF ETHICS FINDS THAT A VIOLATION OF THE ORDINANCE HAS OCCURRED, THEY CAN ISSUE ONE OF FOUR SANCTIONS BASED ON THE CITY OFFICIALS PERCEIVED INTENT AND THE SERIOUSNESS OF THE VIOLATION. THIS DECISION PROCESS IS GENERALLY ILLUSTRATED IN THIS MATRIX ON THE SLIDE. AND IF THE SANCTION IS IMPOSED, THE CITY OFFICIAL WILL BE NOTIFIED, FORMALLY NOTIFIED WITHIN TEN DAYS BY THE CITY AUDITOR. CONGRATULATIONS, YOU'VE DONE IT. NOW. NOW YOU
HAVE TO SIGN MY FORM. >> 9:00 TO ACCEPT THE. >> ETHICS ORDINANCE TRAINING ON
BEHALF OF. >> I MEAN, IF YOU IF YOU HAVE OTHER QUESTIONS, PLEASE, PLEASE
ASK THEM. BUT ALSO SIGN MY FORM. >> AND I'VE GOT I BROUGHT MY ANNUAL.
>> EXCELLENT, EXCELLENT. I DON'T KNOW WHO I'M HANDING IT OVER TO, I GUESS.
>> OKAY. >> ARE THE MAYOR REALLY. >> YEAH. IS THAT IT.
>> THAT'S ALL. >> I'VE GOT. OKAY. ON. >> YES.
[B. ID 26-0559 Receive a report, hold a discussion, and give staff direction regarding the Fiscal Year 2026-27 City Manager’s Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. [Estimated Presentation/Discussion Time: 5 hours]]
>> WORK SESSION ONE. >> A ALL RIGHT. >> ALL RIGHT. WE'LL GO AHEAD AND CALL AS WE'RE SIGNING THE FORM COMING AROUND WORK SESSION ONE B WHICH IS RECEIVE REPORT HOLD DISCUSSION AND GIVE STAFF DIRECTION REGARDING THE FISCAL YEAR 2020 627 CITY MANAGER'S PROPOSED BUDGET CAPITAL IMPROVEMENT PROGRAM AND FIVE YEAR FINANCIAL FORECAST.
>> ALL RIGHT. GOOD MORNING, MAYOR AND COUNCIL. AMY CATHOLIC CHIEF STRATEGIC OFFICER AND I'M PLEASED TO PRESENT THE PROPOSED FISCAL YEAR 2026 2027 BUDGET TO YOU TODAY. SO HERE'S A LOOK AT TODAY'S WORKSHOP. WE'RE GOING TO BEGIN IN A MOMENT WITH OPENING COMMENTS FROM OUR INTERIM CITY MANAGER, CASSEY OGDEN, FOLLOWED BY AN OVERVIEW OF THIS YEAR'S BUDGET PROCESS.
WE'RE ALSO GOING TO WALK THROUGH THE MAJOR FUNDS, STARTING WITH THE GENERAL FUND, THEN ENTERPRISE FUNDS, INTERNAL SERVICES FUNDS, SPECIAL REVENUE FUNDS, AND THEN OUR CAPITAL IMPROVEMENT PROGRAM. FROM THERE, WE'RE GOING TO MOVE INTO COUNCIL DISCUSSIONS AND FUNDING DIRECTION, AND THEN WE'LL CLOSE OUT BY OUTLINING THE NEXT STEPS IN THE BUDGET PROCESS. SO YOU'VE ALREADY SEEN EVIDENCE OF IT. WE'RE GOING TO BE LOGISTICALLY MOVING PEOPLE IN AND OUT OF THE ROOM TODAY. BASED ON THE TOPIC BEING FUNDED. SO THE DIFFERENT FUNDS BEING DISCUSSED. JUST TO MAKE SURE THAT WE HAVE ALL THE RIGHT PEOPLE IN THE ROOM TO ANSWER YOUR QUESTIONS. I KNOW I CAN'T DO IT ALL, I CAN'T POSSIBLY KNOW EVERY ASPECT OF A OVER $2 BILLION BUDGET. SO I'M GOING TO THANK EVERYONE IN ADVANCE FOR BEING IN THE ROOM TO JOIN US.
AND WITH THAT, I WILL TURN IT OVER TO OUR INTERIM CITY MANAGER.
>> THANKS, AMY. GOOD MORNING COUNCIL. I'M PLEASED TO BRING YOU A BALANCED BUDGET FOR FY
[00:25:04]
2627. THIS BUDGET WAS BUILT VERY INTENTIONALLY. MY NUMBER ONE PRIORITY FOR THIS NEXT YEAR'S BUDGET WAS FOCUSING ON INVESTING IN OUR STAFF AND OUR EMPLOYEES, WHILE ALSO MAINTAINING THE SERVICE LEVELS FOR RESIDENTS AND PLANNING FOR GROWTH, AND WHILE ALSO STABILIZING OUR LONG TERM FINANCIAL HEALTH. WE HAVE HAD A VERY CHALLENGING ECONOMIC ENVIRONMENT THE LAST SEVERAL YEARS. WE'VE HAD RISING COSTS, HIGHER SERVICE DEMANDS, BUT WE ALSO WANT TO MAKE SURE THAT WE ARE INCORPORATING COUNCIL'S PRIORITIES INTO THIS BUDGET. WE APPROACH THE BUDGET WITH A BUSINESS NOT AS USUAL MINDSET. THAT WAS OUR OUR TAGLINE FOR THIS YEAR'S BUDGET. WE'VE ASKED EVERYONE TO QUESTION ALL OF THE HISTORICAL WAYS OF DOING THINGS, LOOKING FOR EFFICIENCIES, FINDING SMARTER WAYS TO DELIVER SERVICES, FINDING MORE EFFICIENT WAYS, BUT ALSO MAINTAINING SERVICE LEVELS THAT OUR COMMUNITY EXPECTS. SO SOME OF THE AREAS THAT WE'RE FOCUSING ON ARE PLANNING FOR THE FUTURE FINANCIAL SUSTAINABILITY, ORGANIZATIONAL CULTURE, INVESTING IN OUR EMPLOYEES AND MAINTAINING A COMPETITIVE WORKFORCE, ALIGNING STAFFING AND RESOURCES WITH SERVICE DELIVERY, AND SUPPORTING A SUSTAINABLE OUTCOME FOR OUR POLICE MEET AND CONFER CONTRACTS. SO YOU'LL SEE IN THE BUDGET FOR COMPENSATION, ONE OF THE MOST IMPORTANT THINGS THAT WE FOCUSED ON WAS INVESTING IN OUR EMPLOYEES. UNFORTUNATELY, THIS PAST YEAR, WE WERE NOT ABLE TO GIVE ANY KIND OF MERIT OR COLA ADJUSTMENTS FOR OUR EMPLOYEES. AND THAT MEANS NOTHING FOR OUR POLICE AND FIRE PUBLIC SAFETY. THAT'S CRITICAL TO OUR TO OUR SERVICE DELIVERY. SO WE WERE ABLE TO FOCUS ON THAT. THIS IN THIS BUDGET, YOU'LL SEE WE WERE ABLE TO WE'RE PROPOSING A TWO AND A HALF MERIT INCREASE FOR GENERAL GOVERNMENT EMPLOYEES, ALONG WITH THE COST OF LIVING ADJUSTMENT THAT'S SCHEDULED FOR THE SPRING. SO $1,000 FOR FULL TIME AND 500 FOR PART TIME. WE WANT TO MAKE SURE THAT WE'RE RECRUITING AND RETAINING TALENT, ESPECIALLY GIVEN THE COMPETITIVE MARKETPLACE THAT WE'RE IN. SO WE HAVE DIFFERENT WE HAVE SOME PLACEHOLDERS FOR THE POLICE MEET AND CONFER PROCESS. WE'RE STILL IN NEGOTIATIONS, SO WE HAVE PLACEHOLDERS BUILT INTO THIS BUDGET AS WELL AS WE ARE. WE WILL HAVE THE FIRE ASSOCIATION AGREEMENT NEXT YEAR. SO WE'RE TRYING TO PROACTIVELY PLAN FOR WHAT THAT LOOKS LIKE. SO WE DO HAVE A 3% BASE PAY ADJUSTMENT FOR FIRE, INCLUDING STEP INCREASES. AND THE COLA. WE'RE TRYING TO MAKE SURE THAT WE ARE STARTING THE PROCESS OF CASH FUNDING SOME VEHICLE REPLACEMENTS, PUTTING ASIDE MONEY FOR CAPITAL MAINTENANCE, WHICH HAS HISTORICALLY BEEN JUST EITHER WE JUST HAVEN'T DONE IT. AND SO TRYING TO MAKE SURE THAT WE'RE REDUCING OUR BORROWING, REDUCING OUR RELIANCE ON DEBT WHILE CONTINUING TO MAINTAIN ONGOING OPERATIONAL NEEDS. WE ARE TRYING TO MAKE SURE THAT WE ARE. WE ARE MAINTAINING FINANCIAL DISCIPLINE. THAT WAS VERY IMPORTANT TO ME GOING INTO THIS BUDGET. WE WANT WE ARE BUDGETING FOR 98% OF OUR STAFFING LEVEL, WHICH MEANS WE'RE NOT GOING TO BE WE'RE NOT PROPOSING A MANAGE VACANCY PROGRAM IN THIS BUDGET, BUT WE ARE BUDGETING FOR NATURAL TURNOVER THAT WE'VE SEEN HISTORICALLY. SO WE ALSO HAD OUR DIRECTORS BE PART OF A BUDGET TASK FORCE TO IDENTIFY REDUCTIONS THAT YOU'LL SEE IN THIS BUDGET. THEY LOOKED AT ALL DIFFERENT AREAS OF THEIR BUDGETS AND NOT EVEN THEIR OWN BUDGETS. THEY LOOKED AT EACH OTHER'S BUDGETS AND CAME TOGETHER AND MADE RECOMMENDATIONS FOR REDUCTIONS THAT WE'VE BUILT INTO THIS BUDGET. I DON'T WANT TO STEAL HIS THUNDER, BUT WE ARE PROPOSING A SIGNIFICANT TAX RATE DECREASE, WHICH WAS ONLY POSSIBLE BECAUSE OF THE NEW BUSINESS, PERSONAL PROPERTY COMING ON THE TAX ROLLS, WHICH CREATES A LOT OF VOLATILITY. SO I WANT TO MAKE SURE THAT EVERYONE UNDERSTANDS THIS IS WE DO NOT FEEL LIKE THIS IS SUSTAINABLE. THIS TAX RATE DECREASE BECAUSE THE BPP WILL DEPRECIATE REALLY QUICKLY. IT WILL LIKELY END UP WITH RATE INCREASES NEEDED IN THE FUTURE. HOWEVER, BECAUSE OF THE THE TRUTH IN TAXATION CALCULATION THAT WE HAVE TO GO THROUGH, WE ARE REDUCING THE TAX RATE THIS YEAR. AND SO I JUST WANTED TO SET THE STAGE FOR ALL OF THE THINGS THAT YOU'LL SEE IN THIS BUDGET, AND I APPRECIATE EVERYONE'S HARD WORK. IT HAS BEEN ESPECIALLY WITH THE TAX RATE CALCULATION. IT'S BEEN AN INTERESTING PROCESS THIS YEAR, BUT WE ARE I'M EXCITED FOR THE[00:30:05]
THINGS THAT WE HAVE GOING ON, AND I'M VERY APPRECIATIVE OF COUNCIL BEING SUPPORTIVE OFINVESTING IN OUR EMPLOYEES. SO THANK YOU. >> THANK YOU.
>> YES. COUNCIL MEMBER JESTER. >> NOT A QUESTION, BUT I THINK HOPEFULLY, I THINK I SPEAK FOR EVERYONE WHEN I SAY THANK YOU. I FOUND THE SPECIFICALLY THE INTRODUCTORY PORTION OF THIS LAYING OUT AND EXPLAINING THE DIFFERENT FUNDS, EXPLAINING WHERE IT COMES FROM, WHAT CAN HAPPEN TO IT. IT WAS VERY READABLE. AND ALSO GOING INTO THIS SPECIFIC FUND, SHOWING THE COMPARABLES FROM PRIOR YEARS EXPECTATIONS, AND THEN ALSO JUST SHOWING US THE DIFFERENCE JUST MADE IT SO MUCH EASIER TO DIGEST. SO I JUST WANTED TO, BEFORE WE EVEN START IT, SAY HOW IMPRESSED I WAS WITH THE BACKUP MATERIALS. I CAN'T IMAGINE THE AMOUNT OF HOURS THAT WAS PUT INTO IT, BUT IT REALLY, REALLY HELPS SOMEONE LIKE ME THAT'S NOT, YOU KNOW, USED TO THESE KINDS OF BUDGETS IN MY PRIVATE LIFE, COMPREHEND AND TRY TO MAKE THE BEST DECISIONS WE CAN. SO JUST TO START BY SAYING THANK YOU TO EVERYONE AND THAT IT IS VERY
MUCH APPRECIATED. AND I THINK TOP NOTCH. THANK YOU. >> COUNCILMEMBER HOLLAND.
>> THANK YOU. EXCELLENT PRESENTATION. THANK YOU. THE THE NO MANAGED VACANCY IS THAT IS THAT THE RESULT OF THE MANAGED VACANCY FROM LAST YEAR AND POSSIBLY PART OF THE
PRECEDING YEAR? >> YES. THAT'S CORRECT. WE ARE CURRENTLY WE WHEN WE HAD THE FINANCIAL DISCUSSION, I BELIEVE IT WAS IN MAY OF 25 WHEN WE FELT LIKE WE WERE GOING TO BE THE. THE NET INCOME WAS GOING TO BE NEGATIVE AND GENERAL FUND. WE IMPLEMENTED A MANAGED VACANCY PROGRAM WITHIN GENERAL FUND AND THE OTHER FUNDS, AND WE HELD SOME OF THE VACANCIES AND WOULD NOT ALLOW FOR THOSE POSITIONS TO BE FILLED. AND SO THAT WE'RE PROPOSING TO ELIMINATE THAT GOING FORWARD, WE'RE GOING TO BE ABLE TO FILL OUR POSITIONS THAT ARE
CURRENTLY VACANT. >> SO I'M PRESUMING THAT WE ALLOWED THE THE, THE. PERSONNEL TO DROP DOWN TO A LEVEL THAT YOU FOUND MANAGEABLE. AND IT AND IT WAS MANAGEABLE AND IT
STUCK THERE. >> YEAH. UNFORTUNATELY, A LOT OF VACANCIES HAVE BEEN IN POLICE RIGHT NOW, NOT BECAUSE WE'RE MAKING THEM KEEP THE VACANCIES, BUT BECAUSE WE'VE HAD SOME ISSUES WITH, WITH THE, WITH FILLING OUR POSITION WITH OUR OFFICER POSITIONS. SO OUTSIDE OF POLICE, WE HAD A LOT OF VACANCIES IN THE OTHER DEPARTMENTS AND GENERAL FUND.
SO WE'VE WE HAD WE HAD VACANCIES IN EVERY SINGLE DEPARTMENT. THERE WAS NOT ONE
DEPARTMENT THAT DIDN'T HAVE POSITIONS THAT THEY HAD TO HOLD. >> TO MY KNOWLEDGE, THIS IS THE FIRST ANNOUNCEMENT OF A TAX RATE DECREASE. AM I AM I RIGHT? YES, SIR. WILL THAT WILL THAT
GO OUT INTO THE GREATER WORLD AS I SPEAK? >> YES.
>> OKAY. THANK YOU. I APPRECIATE THE REPORT. >> YES. COUNCIL MEMBER RUMOHR.
>> I JUST WANTED TO SAY THANK YOU FOR PRIORITIZING STAFF SALARIES. I KNOW IT'S NOT A BASE PAY INCREASE FOR FOR MOST STAFF, BUT IN MY REAL JOB, WHERE MY ACTUAL SALARY JOB, I'M SUBJECT TO SIMILAR THINGS WHERE SOMETIMES A FEW YEARS WE WON'T GET ANY KIND OF PAY INCREASE.
AND SO EVEN THOUGH A LUMP SUM IS NOT A BASE INCREASE, IT'S STILL SOMETHING. AND I'M HOPEFUL LOOKING IN FUTURE YEARS THAT WE'LL BE ABLE TO START DOING ACTUAL BASE INCREASES EVENTUALLY. BUT I REALLY APPRECIATE THE EFFORT THIS YEAR TO NOT ALLOW ANOTHER YEAR TO GO BY WITH NOTHING, WHICH IS BASICALLY A PAY CUT FOR FOLKS. SO I REALLY APPRECIATE THAT AND
THAT WILL BE A PRIORITY FOR ME MOVING FORWARD. >> THANKS. AND I THINK IT'S IMPORTANT TO NOTE NOT ONLY THAT WE DID NOT GIVE PAY INCREASES, BUT WE ALSO HAD INCREASES IN HEALTH INSURANCE, WHICH WAS ESSENTIALLY A PAY CUT FOR ALL OF OUR EMPLOYEES. SO THIS THIS PROPOSED BUDGET, YOU'LL SEE THAT THE PROPOSAL IS FOR THE CITY TO ABSORB THE INCREASES IN HEALTH INSURANCE, WHICH IS IMPORTANT FOR EMPLOYEES WHO HAVE ALREADY SEEN REDUCTIONS IN THEIR SALARIES. AND THE PROPOSAL IS FOR THIS YEAR. SO IN SEPTEMBER, TO PROVIDE A COST OF LIVING ADJUSTMENT. SO A ONE TIME LUMP SUM TO EMPLOYEES AND THEN NEXT YEAR PROVIDE A MERIT INCREASE, WHICH IS A A BASE PAY INCREASE ALONG WITH THE COST OF LIVING ADJUSTMENT.
>> SO JUST ONE QUESTION BEFORE YOU TURN OFF YOUR MIC JUST SO THAT I'M CLEAR, NORMALLY WE BUDGETED 100% OF SALARY. IN OTHER WORDS, WHEN WE'RE TALKING ABOUT THE MANAGE VACANCIES VERSUS WHAT WE'RE BUDGETING THIS TIME, WE'VE NORMALLY ASSUMED 100% WITH NO TURNOVER, BASICALLY. BUT THIS YEAR WE'RE GOING TO ASSUME SOME TURNOVER BASED ON WHAT WE NORMALLY SEE.
I'M ASSUMING. >> IN PREVIOUS YEARS WE WE DID BUDGET FOR WHAT WE CALLED
[00:35:01]
SALARY SAVINGS. AFTER GOING THROUGH THE MANAGE VACANCY PROGRAM, WE FELT LIKE IT WAS NOT AS TRANSPARENT AS IT SHOULD HAVE BEEN. IT WAS MORE DIFFICULT TO UNDERSTAND. SO I THINK AMY AND HER TEAM CAME UP WITH BUDGETING AT 98%, BECAUSE IT'S A LITTLE EASIER TO EXPLAIN, AND WE'RE NOT BUDGETING FOR A FLAT DOLLAR AMOUNT AS A PERCENTAGE OF ALL OF THE THE SALARIES BASED ON THE WHAT WE'VE SEEN IN THE PAST AS NATURAL TURNOVER AND POSITIONS.>> AND IS THAT 98% CITYWIDE, OR IS IT EACH DEPARTMENT ASSUMED 98%.
>> IT'S ACROSS THE GENERAL FUND. >> OKAY. THANK YOU. >> MAYOR PRO TEM.
>> I JUST WANTED TO CLARIFY SOMETHING. AFTER COUNCIL MEMBER HOLLAND ASKED IT, THE MANAGED VACANCIES. IT'S NOT THAT WE'RE CUTTING THOSE POSITIONS, IT'S THAT WE'RE FILLING THOSE
POSITIONS. CORRECT? >> CORRECT. >> OKAY. I JUST WANTED TO MAKE
SURE. THANK YOU. >> ALL RIGHT. YEAH. AND FIRST OF ALL, THANK YOU FOR I ECHO THE SENTIMENTS OF MY MY COLLEAGUES, BUT I ALSO KNOW THE TREMENDOUS CHALLENGE IT HAS BEEN WITH STATUTORY REQUIREMENTS FOR NO NEW REVENUE TAX RATE CALCULATION. AND WITH THE NEW BUSINESS, PERSONAL PROPERTY THAT'S COMING ONLINE, WHICH WE'LL TALK ABOUT A LITTLE BIT MORE IN DETAIL HERE. IT HAS BEEN A CHALLENGE MOVING FORWARD, AND I REALLY APPRECIATE YOU SHARING WITH THE PUBLIC THAT WE NEED TO MANAGE EXPECTATIONS REGARDING THAT. AND I THINK WE'LL DO THAT MORE SPECIFICALLY AS AS WE MOVE FORWARD. AS FAR AS QUESTIONS, HOW WOULD YOU ALL LIKE TO HANDLE THIS? I MEAN, ARE THERE SORT OF NATURAL BREAKS IN THE PRESENTATION? I MEAN, TO WHERE WE CAN SORT OF ASK QUESTIONS COLLECTIVELY OR, I MEAN, I DON'T WANT TO JUST ALL OF A SUDDEN JUST PEPPER YOU WITH QUESTIONS FROM EVERYBODY. SO I MIGHT JUST LEAN ON YOU TO HELP US KIND OF FIND THOSE BREAKS WHERE WE CAN DO THAT TO MAKE IT MORE EFFICIENT FOR YOU.
>> WE'RE WELCOME TO QUESTIONS AT ANY POINT, BUT THERE IS A BREAK BETWEEN THE SETS OF FUNDS,
AND THAT WOULD BE THE PERFECT TIME TO. >> ASK THOSE QUESTIONS.
>> THAT'D BE WONDERFUL. ALL RIGHT. OKAY. ANY OTHER COMMENTS OR QUESTIONS BEFORE WE DIVE IN?
OKAY. THANK YOU. >> ALL RIGHT. SO NEXT WE'LL LOOK AT THE ANNUAL PLANNING CALENDAR. YOU'VE SEEN THIS A COUPLE OF TIMES BEFORE. BUT JUST TO REITERATE, THIS PROCESS DOES START IN FEBRUARY OF EACH YEAR WITH A KICKOFF, AND THEN DEPARTMENTS WORK UNTIL APRIL 1ST TO SUBMIT THEIR BUDGETS FROM THERE FOR THE MONTH OF APRIL THROUGH JUNE. WE ARE HAVING EXTENSIVE REVIEW MEETINGS, BOTH WITH THE BUDGET TEAM AND CITY MANAGEMENT. WE THEN START ENGAGING WITH COUNCIL AND WITH PB IN JULY. WE RECEIVED THIS YEAR OUR CERTIFIED VALUES ON JULY THE 24TH. SO WAS THAT JUST A WEEK AGO? AND THEN TODAY IS OUR AUGUST MILESTONE. WE THEN MOVE IN TO OUR PUBLIC HEARING IN ON SEPTEMBER 15TH AND THEN ADOPTION ON SEPTEMBER THE 22ND. BEFORE WE BEGIN A NEW YEAR ON OCTOBER THE 1ST. SO AS WE MOVE FURTHER INTO THE BUDGET, IT'S IMPORTANT TO JUST TAKE A MOMENT TO TALK ABOUT THE ENVIRONMENT THAT WE'RE WORKING WITHIN. WE DISCUSSED THIS RATHER EXTENSIVELY AT THE JULY 14TH WORK SESSION, SO I'LL JUST KEEP IT VERY BRIEF. TODAY WE ARE ENTERING A FISCAL YEAR WITH SEVERAL CHALLENGES AND OPPORTUNITIES THAT INFLUENCE OUR FINANCIAL OUTLOOK. ON THE OPPORTUNITY SIDE, WE'RE SEEING HEALTHY SALES, TAX COLLECTIONS, UNEMPLOYMENT THAT IS RELATIVELY AVERAGE AND STABLE. AND THEN WE HAVE A STRONG DEVELOPMENT THAT INDICATES CONTINUED GROWTH IN BOTH THE RESIDENTIAL AND COMMERCIAL SECTORS. HOWEVER, WE ARE SEEING SOME CHALLENGES. ONE OF THOSE IS INFLATION AND HOW IT'S IMPACTING THE COST OF ESSENTIAL SUPPLIES ACROSS THE ORGANIZATION. AS CASSEY MENTIONED, THERE IS A HIGHLY COMPETITIVE LABOR MARKET IN THIS REGION. AND THEN I KNOW WE COVERED THIS QUITE EXTENSIVELY LAST TIME TOO, JUST TALKING ABOUT THE CONSTRAINTS THAT WE HAVE IN TERMS OF OUR REVENUES. WHY THIS MATTERS IS JUST, YOU KNOW, AS WE AS WE GROW AND AS GROWTH BRINGS IN MORE RESIDENTS, MORE BUSINESSES, IT MEANS WE HAVE MORE CALLS FOR SERVICE. WE HAVE A GREATER DEMAND PLACED ON OUR INFRASTRUCTURE. AND THEN WITH THAT, WE ALSO HAVE RISING COMMUNITY EXPECTATIONS. REVENUES DON'T ALWAYS KEEP PACE WITH THOSE EXPECTATIONS, AND SOME OF OUR REVENUE SOURCES ARE MORE VOLATILE THAN OTHERS.
THAT'S WHY THE DECISIONS THAT WE MAKE AROUND OUR BUDGET NEED TO BE DISCIPLINED. THEY NEED TO BE STRATEGIC, AND THEY NEED TO BE FOCUSED ON LONG TERM OUTCOMES. SO I THINK CASSEY DID A GREAT JOB ON THIS ONE. I'M NOT GOING TO GO INTO ANY ANY DETAIL ON THIS ONE. HER MESSAGE
[00:40:01]
WAS CLEAR. WE'RE TO STAY FOCUSED, STAY EFFICIENT AND STAY FOCUSED ON PRIORITIES. SO WITH THAT, WE'RE GOING TO BE MOVING IN TO THE GENERAL FUND. AND I THINK I HAVEN'T TAKEN A ROLL CALL, BUT I THINK WE'VE GOT ALL OF OUR DIRECTORS IN THE ROOM. IF NOT, THEY'LL HAVE A MOMENT TO JOIN US. SO THE GENERAL FUND IS OUR MAIN OPERATING FUND, AND IT SUPPORTS THE SERVICES THAT OUR COMMUNITY EXPERIENCE DAY TO DAY. IT'S ALSO WHERE SOME OF OUR MORE SENSITIVE PRESSURES SHOW UP, BECAUSE IT DEPENDS HEAVILY ON REVENUE SOURCES THAT GROW MORE SLOWLY THAN THE DEMAND FOR SERVICES. LATER IN THE SESSION, WE'RE GOING TO WALK THROUGH THE PROPERTY TAX AND SALES TAX REVENUES IN DETAIL AND TALK ABOUT WHAT IS DRIVING OUR NUMBERS IN 2027. ALL RIGHT. SO THIS SLIDE, WHICH I WILL SAY HAS BEEN UPDATED. THIS IS ONE OF THE SO THE REASON THAT YOU GOT THE PACKET THAT YOU GOT THIS YEAR IS WE HAVE A BRAND NEW BUDGET SOFTWARE THAT PUTS TOGETHER THAT BOOK FOR YOU. SO I'M GLAD THAT YOU LIKE THAT THIS CHART HAPPENED TO BE THE ONLY ONE IN THAT BOOK THAT IS NOT AUTOMATICALLY UPDATED. SO WE DID NEED TO GO BACK AND MAKE A QUICK CORRECTION ON THIS ONE. SO THIS DOES SHOW OUR REVENUE SOURCE MAKEUP FOR THE GENERAL FUND. AND THE, YOU KNOW, TAKE AWAY FROM THIS ONE IS THAT WE DO HAVE A DIVERSE REVENUE BASE, BUT THERE ARE SOME UNIQUE CONSIDERATIONS WITH EACH OF THESE. SO PROPERTY TAX IS THE LARGEST CONTRIBUTOR AT 35%. AND THAT'S FOLLOWED BY OUR SALES TAX AT 2,029%. AND THEN WE HAVE ROI, WHICH COMES IN AT ROUGHLY 19%. AND THAT INCLUDES THE RETURN ON INVESTMENT FROM OUR UTILITIES AND COST ALLOCATIONS FROM OTHER FUNDS TO COVER THE COST OF SERVICES THAT THE GENERAL FUND DEPARTMENTS PROVIDE TO THEM, FEES, PERMITS, AND INTERGOVERNMENTAL MAKES UP ABOUT 11%. AND IN THIS CASE, INTERGOVERNMENTAL MEANS THOSE REVENUES THAT WE GET FROM ENTITIES SUCH AS DISD COUNTY, LITTLE ELM, FOR WHOM WE PROVIDE DISPATCH SERVICES TO. AND THEN FINALLY, WE HAVE FRANCHISE FEES THAT COME IN AT 5%. IT'S ALSO IMPORTANT TO NOTE THAT WE TAKE $16.3 MILLION OFF THE TOP OF THAT, AND THAT GOES DIRECTLY TOFUNDING STREETS. >> REAL QUICK QUESTION ON THAT. YOU SAID ON THE ROI AND COST OF SERVICE. YES. SO THE THE TRANSFERS ARE PART OF THAT FIGURE. THAT'S NOT JUST CORRECT.
OKAY. ALL RIGHT. >> THAT IS CORRECT. >> OKAY. NEXT WE'LL MOVE ON TO THE PROPERTY TAX OVERVIEW. SO OBVIOUSLY THIS IS THOUGHT TO BE ONE OF THE MOST STABLE AND PREDICTABLE REVENUE SOURCES THAT WE HAVE. HOWEVER, WE NOW SEE THAT THERE IS MORE VOLATILITY AND POTENTIAL FOR VOLATILITY COMING INTO OUR PROPERTY TAX RATE. THE CITY CERTIFIED ASSESSED VALUE INCREASED SIGNIFICANTLY THIS YEAR, RISING FROM 22.7 BILLION TO 26.7 BILLION, AND THAT'S 18% OVER LAST YEAR. THAT DOES INCLUDE 1.9 BILLION IN NEW VALUE ADDED TO THE TAX ROLL, WHICH IS A BIG CONTRIBUTOR TO THE OVERALL INCREASE. WE ALSO SEE THE IMPACT OF BUSINESS PERSONAL PROPERTY, OR BPP, WHICH MAKES UP NEARLY 1.3 MILLION OF THAT NEW VALUE. WHILE IT DOES PLAY AN IMPORTANT ROLE IN THE INCREASE THAT WE'RE SEEING AND THE RESULTING TAX RATE, IT DOES DEPRECIATE QUICKLY. AND THAT'S SOMETHING THAT WE'RE GOING TO HAVE TO KEEP IN MIND GOING FORWARD. SO THAT MEANS THAT THAT SHORT TERM BOOST DOESN'T NECESSARILY TRANSLATE INTO LONG TERM STABILITY. AND WE ARE GOING TO TALK ABOUT THIS A LOT THIS MORNING. WE ARE ASSUMING A 98.5% COLLECTION RATE, WHICH
DOES FOLLOW HISTORICAL TREND. >> REAL QUICK QUESTION OF CLARIFICATION THEN I'LL COME.
SO ON THE NEW WHERE IT SAYS NEW VALUE ADDED, IT'S 1.9, THEN BPP 1.2. MY UNDERSTANDING IS THAT A LOT OF THAT INCREASE FROM 22.7 TO 26.7 WAS ABOUT 3 BILLION IN BPP VALUE FROM A CERTAIN ENTITY.
CORRECT. AND SO IS THAT REALLY WHAT THOSE NUMBERS REPRESENT. AND YOU'LL PROBABLY GO INTO THE CATEGORIZATION OF OLD VALUE VERSUS NEW VALUE. BUT SO THAT 1.9 AND 1.2, THOSE ARE SEPARATE NUMBERS. SO TOGETHER THEY'RE ABOUT THREE. THEY'RE ABOUT THREE.
>> 1.9 IS OUR NEW VALUE OF THAT 1.9. 1.3 IS ATTRIBUTED TO BPP. >> OKAY. ALL RIGHT. THANK YOU.
VERY VERY GOOD. APPRECIATE THAT CLARIFICATION, COUNCILMEMBER RUMOHR.
[00:45:01]
>> THANK YOU. MY QUESTION WAS I'M GOING TO HAVE QUESTIONS ABOUT SOME OF THE REVENUE SIDE OF GENERAL FUND. WOULD YOU WANT ME TO WAIT UNTIL WE'RE AT THE END OF THE REVENUE FOR GENERAL FUND OR KIND OF HIT THOSE AS WE GO THROUGH THEM? LIKE RIGHT NOW WE'RE ON PROPERTY TAX. I HAVE SOME A COUPLE QUESTIONS ON THAT ONE. I CAN WAIT TILL END OF REVENUE. I CAN ASK NOW.
>> WELL, I GUESS IF WE WAIT TILL THE END, THEN WE GOT TO POP BACK. AND SO YEAH, LET'S JUST IF YOU GOT THEM HERE, DO YOU, DO YOU THINK THE NEXT SLIDE WHICH IS GOING TO TALK
ABOUT OUR TAX RATE AND IMPACT OF BUSINESS, THOSE SORT OF. >> I SAY LET'S GET THROUGH PROPERTY TAX. AND THEN WE CAN BEFORE WE MOVE TO SALES TAX OKAY OKAY.
>> OKAY. >> GOOD. >> THANK YOU.
>> OKAY. >> SO THAT'S GOOD. >> ALL RIGHT. SO NEXT I WANT TO TALK A LITTLE BIT ABOUT THE TERMS THAT WE USE WHEN DISCUSSING THE TAX RATE. THIS INCLUDES A NO NEW REVENUE RATE AND THEN THE VOTER APPROVAL RATE. SO THE NO NEW REVENUE RATE IS THE RATE THAT IS NEEDED TO GENERATE ABOUT THE SAME AMOUNT OF REVENUE AS THE PRIOR YEAR. AFTER ADJUSTING FOR NEW VALUES AND PROPERTIES WITH TAX CEILINGS, IT'S ESSENTIALLY A WAY OF MEASURING THE TRUE CHANGE IN THE TAX BURDEN FOR EXISTING TAXPAYERS. THEN WE HAVE THE VOTER APPROVAL RATE, WHICH ALLOWS O AND M PORTION OF THE TAX RATE TO GROW BY UP TO THE STATE CAP OF 3.5% OVER THE PRIOR YEAR. AGAIN, THAT IS EXCLUDING NEW VALUE AND ANY TAX CEILING ADJUSTMENTS. IF THE CITY ADOPTS A RATE ABOVE THIS LEVEL, IT WOULD TYPICALLY TRIGGER AN ELECTION. WE ALSO BREAK THAT OUT INTO INTEREST IN SINKING, WHICH IS DEBT SERVICE, WHICH PAYS FOR VOTER APPROVED DEBT, AND THEN O AND M RATE, WHICH FUNDS THE DAY TO DAY OPERATIONS OF THE CITY. SO IT'S JUST, AGAIN, WANTING TO ESTABLISH AN UNDERSTANDING AROUND THOSE TWO PHRASES AS WE MOVE INTO DISCUSSION. NEXT AROUND THE IMPACT OF BPP. SO THIS SLIDE IS REALLY MEANT TO OVERALL ILLUSTRATE HOW BPP AFFECTS THE TAX ROLL AND THE TAX RATE. THAT'S AN IMPORTANT STORY FOR US TO TELL THIS YEAR, BECAUSE THE BPP PLAYED A MAJOR ROLE IN HOW THE NUMBERS ALL CAME TOGETHER. WE'RE SHOWING TWO SCENARIOS HERE. ONE IS THE NEW BPP VALUE INCLUDED AND THEN ONE WITHOUT. SO THAT IS THAT FULL 3 MILLION FACTORING THAT IN WHICH IT OBVIOUSLY IS A PART OF OUR TAX RATE CALCULATION. AND THEN WHAT IT WOULD MEAN IF THAT PARCEL IF THAT PROPERTY DID NOT EXIST AND WHAT THAT IMPACT IS. SO ITS EXISTENCE EQUATES TO ABOUT $5 MILLION MORE IN REVENUES. IT RESULTS IN A DECREASE IN THE AVERAGE TAX BILL VERSUS AN INCREASE IN THE AVERAGE TAX BILL. ANY QUESTIONS ON THIS SLIDE.
>> IS THIS. >> IS THIS THE LAST ONE ON PROPERTY.
>> I BELIEVE WE HAVE ONE. >> MORE ONE MORE TO TAKE. ANY QUESTIONS ON THAT.
>> YEAH OKAY. OKAY. SO JUST IN TALKING ABOUT WHY THE BPP MATTERS AND CONTINUING THAT CONVERSATION, WE DO NEED TO TREAT BPP DIFFERENTLY THAN OTHER TYPES OF VALUES AND IN HOW WE PROJECT AND WHAT WE'RE LOOKING FORWARD TO. SO WHEN BPP SPIKES, ESPECIALLY WHEN IT COMES FROM A LARGE FACILITY OR FROM EQUIPMENT, IT DOES PUSH DOWN THAT NO, NO NEW REVENUE RATE. AS YOU'VE SEEN ON PAPER, IT LOOKS GREAT. IT'S A LOWER TAX RATE, HIGHER VALUES, AND WHAT WOULD APPEAR TO BE A STABLE REVENUE PICTURE. BUT IT DOES DECLINE IN VALUE MUCH FASTER THAN, SAY, A HOME OR A COMMERCIAL BUILDING. EQUIPMENT DEPRECIATES EVERY YEAR. AND IN SOME CASES, MAJOR AMOUNTS OF VALUE CAN DISAPPEAR OVERNIGHT. WHEN THAT HAPPENS, THE TAX RATE THAT LOOKS SUSTAINABLE ONE YEAR CAN BE STRETCHED THE NEXT. SO WHILE BPP, I'M GOING TO CONTINUE TO JUST MESS THOSE LETTERS UP. SO WHILE IT HELPS TODAY, IT IS NOT THE KIND OF LONG TERM VALUE THAT WE CAN COUNT ON TO MAINTAIN A LOWER RATE YEAR AFTER YEAR. IT'S A BOOST, BUT IT IS CERTAINLY NOT A GUARANTEE. AND OUR FINANCIAL PLANNING GOING FORWARD NEEDS TO RECOGNIZE THE DIFFERENCES. SO WE AREN'T OVERRELIANT ON A REVENUE SOURCE THAT CAN SHIFT
VERY QUICKLY. ONE MORE SLIDE. >> SURE. >> NO WORRIES. ALL RIGHT. SO WITH THE PROPOSED TAX RATE, THE AVERAGE RESIDENTIAL BILL WILL DECREASE BY ABOUT. SORRY WRONG
[00:50:03]
SLIDE. TWO MORE SLIDES TO GO. SO WE ARE LOOKING AT A TOTAL TAX RATE FOR 2027 OF 0.548485.WHICH IS A DECREASE FROM LAST YEAR AND INCLUDES 0.316344 IN O AND M AND 0.232141 IN DEBT SERVICE. I KNOW THAT'S A LOT OF NUMBERS I JUST THREW OUT THERE, AND IT REPRESENTS A NEARLY 8% REDUCTION IN THE RATE. THIS TABLE DOES SHOW THE MULTI YEAR HISTORY OF OUR TAX BASE. YOU CAN SEE THAT VALUES HAVE GROWN QUICKLY SINCE 2021, INCREASING FROM 13.6 BILLION TO 26.7 BILLION THIS YEAR. WELL THAT'S SIGNIFICANT. OUR REVENUES ARE STILL LIMITED BY STATE LAW, AND SERVICE DEMANDS AGAIN CONTINUE TO GROW, OFTEN AT A FASTER PACE THAN OUR REVENUES. AND AS WE DISCUSSED EARLIER, A PORTION OF THAT VALUE, THE BPP, IS NOT GUARANTEED TO STAY AT THE CURRENT LEVELS. ALL RIGHT. NOW WE'RE GOING TO TAKE A QUICK LOOK AT THE IMPACT OF PROPERTY TAX ON ON THE AVERAGE HOMEOWNERS TAX BILL, IT WOULD DECREASE BASED ON THE PROPOSED TAX RATE BY ABOUT $203 ANNUALLY, OR $16.91 A MONTH FOR THE AVERAGE HOUSEHOLD, WHICH IS VALUED AT 382 $383,000. VALUE GREW ABOUT 7% LAST YEAR AND AGAIN NEARLY 18% THIS YEAR. THE QUESTION GOING FORWARD REALLY IS HOW QUICKLY THOSE INCREASES STABILIZE AND HOW RELIABLY THEY SUPPORT OUR ONGOING OPERATIONS. SO BEFORE I MOVE ON TO SALES TAX.
>> OKAY, COUNCILMEMBER RUMOHR. >> THANK YOU. ON SLIDE NINE. THE JUMP FROM OUR FY 26 ESTIMATE FOR SALE FOR PROPERTY TAX, THE JUMP FROM FY 26 TO THE PROJECTED FY 27, IT LOOKS LIKE IT'S ABOUT 9.6 MILLION IN A REVENUE INCREASE. I'M CURIOUS. I KNOW THAT MOST OF THAT IS NEW VALUE, 68.4% OF THAT NEW VALUE IS BPP BASED ON THE NEW VALUE ADDED THERE ON THE RIGHT. SO I'M JUST TRYING TO GET A DOLLAR AMOUNT OF THE 9.6 MILLION INCREASE IN PROPERTY TAX. WHAT DOLLAR AMOUNT ROUGHLY IS THAT OF BPP VERSUS HOW MUCH OF THAT IS INCREASE IN REAL PROPERTY? I'M ESTIMATING LIKE A 3 MILLION INCREASE IN REAL PROPERTY AND 6.6 MILLION IN BPP. AND THAT TOTAL 9.6 MILLION INCREASE. SORRY TO MAKE YOU DO MATH ON THIS.
>> OH, NO. I'M LOOKING AT SETH BECAUSE HE'S BECOME OUR PROPERTY TAX GURU. OKAY, SURE.
>> JUST SO I KNOW, KIND OF IN THAT 9.6 MILLION JUMP, HOW MUCH OF THAT IS LIKE SORT OF A STABLE INCREASE VERSUS THE SORT OF VOLATILE BPP? AND THAT'S REALLY MY PRIMARY QUESTION ON THIS SLIDE. IF WE WANT TO MOVE AROUND THE DAIS WELL SOMEBODY DOES MATH. I'M WILLING TO PASS IT OFF AS SOMEBODY DOING MATH OVER HERE. SO UNTIL THE MATH IS READY I'M HAPPY TO WAIT. YEAH.
>> WELL AND AND AND I MAY ADD MAYBE AN INQUIRY TO THAT BECAUSE I KNOW, AS YOU POINTED OUT, THE THE PROJECTION IS ABOUT A $10 MILLION INCREASE. YEAH. ABOUT A $10 MILLION INCREASE IN PROPERTY TAX COLLECTION. IF WE HAVE A $3 BILLION ADDITIONAL VALUE, LET'S JUST SET IT ASIDE $3 BILLION TIMES OUR TAX RATE. EVEN IF WE DID A 50 CENT TAX RATE, THAT'S ABOUT 15. SO I'M TRYING TO FIGURE OUT I KNOW SOME OF IT IS SPLIT BETWEEN THE O AND M AND THE DEBT SERVICE. SO I'M JUST TRYING TO FIGURE OUT. BUT THAT MAY BE TOO COMPLICATED FOR THIS
DISCUSSION. >> RIGHT. AND WE DID CALCULATE HERE ABOUT FIVE 5 MILLION OF IT IS ATTRIBUTED TO THAT PROPERTY EXISTING REGARDLESS OF NEW VALUE OR EXISTING VALUE.
>> 5 MILLION IS IS IS ATTRIBUTED TO WHAT? I'M SORRY I DIDN'T CATCH.
>> UP TO THAT VALUE. WHETHER WE CONSIDER IT NEW OR EXISTING. SO IN THIS SCENARIO WHERE WE HAVE WHAT OUR VALUE IS VERSUS WHAT IT WOULD BE WITHOUT THAT PROPERTY, IT'S A $5 MILLION
DIFFERENCE. >> OKAY. $5 MILLION IN ACTUAL REVENUE. YES. YEAH. THAT'S WHERE I'M SORT OF CONFUSED BECAUSE $3 BILLION, $3 BILLION TIMES JUST IN GENERAL, THAT'S
[00:55:03]
WHAT I'M SAYING. THERE'S MORE PROBABLY SOPHISTICATED CALCULATIONS THAN ALLOCATIONS.BUT IF YOU JUST HAD A THREE, IF YOU HAD A $3 BILLION ASSET WITH OUR TAX RATE OF OF, LET'S JUST SAY FOR MATH PURPOSES, $0.50 OR $0.60, THAT'S WHAT IT IS NOW, $0.60. WELL, THAT'S $18 MILLION.
SO THAT'S WHERE I'M A LITTLE CONFUSED. SO IF $3 BILLION SHOWS UP ON THE TAX ROLL, WHETHER IT'S NEW VALUE OR OLD VALUE, NOW, SOME OF IT IN THIS CALCULATION, A LOT OF IT'S THAT'S PROBABLY WHAT A LOT OF IT'S GETTING REBATED BACK TO. I SAY REBATED, IT'S GOING TO THE BENEFIT OF THE THE PROPERTY OWNERS BECAUSE OF THE LOWER TAX RATE. SO THAT'S AND THAT'S WHAT I REALLY WANTED TO POINT OUT IS THAT WE ARE HAVING AN EXTREMELY SIGNIFICANT AMOUNT OF ADDITIONAL REVENUE BECAUSE OF THE CALCULATION THAT THE STATE REQUIRES, IT DROPS THAT RATE DOWN TO, I THINK THE NO NEW REVENUE WAS $0.51. AND THEN THEY COME BACK TO THE 54. SO A
LOT OF THAT MONEY IS GOING BACK TO. >> SO IF WE'RE JUST USING ROUGH NUMBERS, ABOUT $15 MILLION, TEN OF IT GETS REBATED BACK TO PROPERTY TAX PAYERS, AND THEN 5
MILLION IS THE INCREASE IN GENERAL FUND. >> OKAY, FANTASTIC. THAT ANSWERS MY QUESTION. THANK YOU. I THINK THAT ARE WE STILL DOING THE MATH?
>> IT'S TAKING A WHILE TO LOAD, BUT OKAY. >> NO THAT'S COOL. YES.
COUNCILMEMBER HOLLAND SORRY. THANK YOU, THANK. >> YOU, THANK YOU. COULD YOU GO TO THE SLIDE THAT SHOWS THE THE 382 AVERAGE VALUE HOUSE? MAYBE THE NEXT SLIDE PLEASE.
>> THE NEXT SLIDE IS SALES TAX. >> THAT ONE. THAT ONE. I'M SORRY. I CAN'T BELIEVE I'M GOING TO SAY THIS. AND I'M GOING TO FEEL RIDICULOUS SAYING THIS. I'M VERY VERY IMPRESSED.
AT 7.88% DECREASE. WHAT SCARES ME ABOUT THAT IS THE RICOCHET EFFECT THAT THAT MIGHT HAVE NEXT BUDGET YEAR. YOU KNOW YOU GUYS WERE GREAT IN IN 2627 AND NOW YOU'RE, YOU KNOW, AND THEN IT DOES WHATEVER IT DID LAST YEAR, FOR EXAMPLE, THAT THAT THAT'S A SUBSTANTIAL, IT SEEMS TO ME TO FOR THAT TO BE A FAIRLY SUBSTANTIAL DECREASE. YOU DON'T NEED TO COMMENT ABOUT THAT. YOU KNOW, THERE'S, THERE'S NOTHING TO SAY. IT'S THE DUMBEST THING I COULD HAVE
POSSIBLY SAID. I'M SORRY. >> NO, ACTUALLY THE COUNCIL MEMBER HOLLAND YOU WERE SPOT ON.
AND THAT'S THE CHALLENGE HERE WITH THIS KIND OF I MEAN, THIS IS A THIS IS GOING TO BE HAPPENING ALL OVER THE STATE BECAUSE OF DATA CENTERS AND THEIR BUSINESS, PERSONAL PROPERTY. AND THIS IS HAS MADE IT VERY CHALLENGING. SO YOU'RE ABSOLUTELY RIGHT THAT COME NEXT YEAR AS THESE DEPRECIATE AND SO FORTH AND SO ON, IT, WE'RE NOT GOING TO NECESSARILY SEE THIS THE WHOLE TIME. SO THAT THAT WAS A VERY ASTUTE OBSERVATION. WELL, I APPRECIATE THAT.
>> I'M NOT SURE. STUPID MAYBE, BUT NOT. BUT BUT I APPRECIATE YOUR POINTING THAT OUT THAT THAT, THAT THESE BUSINESSES THAT ARE SOMETIMES PERCEIVED AS, AS VILLAINS IN OUR COMMUNITY, MAN, THEY'RE, THEY'RE, THEY'RE CARRYING THEIR, THEIR, THEIR CARRYING THEIR WEIGHT AND, AND
HELPING ROW THE ROW THE BOAT. >> WELL. >> IN CERTAIN, IN, IN THIS PARTICULAR EXAMPLE, IN THIS PARTICULAR YEAR. YES, BUT IT'S BECAUSE OF THE, THE STATE TAX LEGISLATIVE PROCEDURES THAT REALLY HAVE CREATED THIS, WHICH IS GOOD FOR THE TAXPAYER. AND IT PROVIDES A LITTLE ADDITIONAL REVENUE. BUT NEXT YEAR, AS YOU POINTED OUT, AS THESE THINGS BEGIN TO DEPRECIATE AND AS SOME OF THIS NEW VALUE IS CONSIDERED OLD VALUE, NEXT YEAR, IT'S GOING TO REALLY BE A SEESAW EFFECT THAT WE'VE GOT TO REALLY TRY TO MAKE SURE WE MANAGE.
>> THIS WILL MAKE THE NEWSPAPER AS HOLLAND BOOZE TAX DECREASE. THAT'S WHAT.
>> NO, I DON'T THINK SO. OKAY. ALL RIGHT. WE'LL MOVE FORWARD UNTIL WE GET TO. YEAH. AND THAT'S FINE. YEAH YOU BET. ANY OTHER QUESTIONS ON THIS? NO. OKAY.
>> WELL WHICH DIRECTION IT I JUST GO THERE. ALL RIGHT. SO I JUST SLIDE 15 SALES TAX. SO THIS IS THE GENERAL FUND SECOND LARGEST SOURCE SOURCE OF REVENUE. AND IN FACT ONE OF THE MOST VOLATILE. WHEN THE ECONOMY IS STRONG WE FEEL IT. WHEN THERE'S A
>> LOW DOWN. WE FEEL THAT JUST AS QUICKLY. WE DID DO A CORRECTION ON THIS SLIDE AS WELL. THERE ARE FIVE SLIDES WE CORRECTED. JUST GOING TO SAY THAT UP FRONT. SO THIS IS ONE OF THEM. YES. YES. I JUST WANTED TO CLARIFY WE ABOUT THE 6.62% INCREASE. THAT IS COMPARING THE 2026 YEAR END ESTIMATE TO THE 2025 ACTUALS. SO WE ARE SEEING AN ESTIMATED
[01:00:10]
6.62% INCREASE IN THE CURRENT YEAR. SO THAT THAT IS A HEALTHY INCREASE. AND I WOULD SAY A TESTAMENT TO A STABLE ECONOMY. BUT AGAIN, WE DO NEED TO REMEMBER THAT THIS IS A REVENUE SOURCE THAT CAN BE VOLATILE. IT REACTS TO CONSUMER HABITS, SHOPPING TRENDS, ECONOMIC CONDITIONS. THERE ARE ALL TYPES OF THINGS THAT WILL IMPACT THIS. ONE OF THE MOST SIGNIFICANT WE SAW SHIFTS WE SAW WAS DURING COVID, AND IT'S A GREAT EXAMPLE OF HOW QUICKLY PATTERNS CAN MOVE. SO LOOKING BACK AT THAT POINT IN TIME, WE SAW 15 AND 17% INCREASES IN OUR SALES TAX.WE DID SEE THAT DECLINE. THEN AGAIN IN 2024. AND SINCE THAT POINT IN TIME, IT HAS BEEN STEADILY INCREASING. WE ARE ASSUMING A 5% AVERAGE GROWTH AS WE MOVE INTO 2027 AND FORWARD.
SO GIVEN THE RANGE OF INCREASES THAT WE'VE SEEN OVER THE LAST SEVERAL YEARS, AGAIN RANGING FROM A HIGH OF 17% TO JUST OVER 2% IN 2024, 5% IS A MODERATE ASSUMPTION. IT'S NOT OVERLY
OPTIMISTIC, AND IT'S ALSO NOT OVERLY CONSERVATIVE. YES. >> ONE QUESTION I HAVE ON THAT IS IT MY UNDERSTANDING THAT THE SALES TAX FIGURE REPRESENTS EVEN THE SALES TAX THAT IS RECEIVED FROM UTILITIES? I MEAN, BECAUSE CERTAIN CERTAIN UTILITY, CERTAIN UTILITIES, I THINK CHARGE SALES TAX, ELECTRICITY DOESN'T MEASURE RESIDENTIAL. YEAH. AND SO THIS IS ALL INCLUSIVE. OKAY. SO IT'S SOMEBODY IF THEY COULD CLARIFY FOR ME, BECAUSE I KNOW ON DATA CENTER ELECTRICAL GENERATION AND SALES, I THINK THERE'S CURRENTLY A THEY'RE EXEMPT FROM SALES TAXES. DO WE KNOW. I'M HEARING THINGS, YOU KNOW, LEGISLATIVELY THAT, OH, THEY MIGHT EXEMPT THAT. BUT ARE THEY EXEMPT? NOW, IF THERE'S ELECTRICITY THAT'S BEING PRODUCED OR SOLD TO DATA CENTERS, THAT THEY ARE EXEMPT FROM THE SALES TAX PORTION OF
THAT REVENUE? >> YEAH. MATT HAMILTON CHIEF FINANCIAL OFFICER SO THE STATE DOES PROVIDE AN EXEMPTION FOR FOR DATA CENTERS IN THE REMITTANCE OF SALES TAX. AND SO THERE'S A COUPLE DIFFERENT AREAS OF SALES TAX SPECIFIC TO, YOU KNOW, ELECTRIC PURCHASE. IF THE DATA CENTER QUALIFIED UNDER THE STATE'S EXEMPTION PROGRAM, THEY COULD RECEIVE AN EXEMPTION CERTIFICATE WHEREBY THEY WOULD NOT HAVE TO REMIT SALES TAX. SO IN ADDITION TO THE ELECTRIC PURCHASE, THEY ALSO, DEPENDING ON WHAT TYPE OF DATA CENTER IT IS AND WHAT THEY'RE PURCHASING, EQUIPMENT, OTHER THINGS THAT THEY'RE THAT THEY'RE PURCHASING MAY ALSO BE EXEMPT FROM, FROM SALES TAX AS WELL. ON THE OTHER SIDE. YOU KNOW, ANYTHING THAT THEY. SELL, FOR EXAMPLE, LIKE MAYBE SPARE ASSETS THAT THEY DISPOSE OF, THEY POTENTIALLY WOULD COLLECT SALES TAX FROM WHATEVER ENTITY IS PURCHASING THEIR ASSETS, AND THEY WOULD HAVE TO REMIT THAT TO THE STATE.
WE HAVEN'T SEEN THAT VERY OFTEN. AND IT'S JUST BEEN A REAL SMALL ONE OFF. INSTANCES. SO YES, BY AND LARGE, THEY DO RECEIVE SIGNIFICANT SALES TAX EXEMPTIONS FROM THE STATE.
>> IT AND YOU SAID THEY HAVE TO FILL OUT. THEY CAN GET A CERTIFICATE. THEY HAVE TO QUALIFY FOR CERTIFICATE. DO YOU KNOW IF EITHER ONE OR BOTH OF THE ONES THAT WE HAVE NOW
QUALIFY FOR THAT SALES TAX EXEMPTION. >> THE LARGEST OF THE TWO DATA CENTERS DID QUALIFY. OKAY. AND I BELIEVE THAT THEY QUALIFIED ABOUT A YEAR AGO. THE SMALLER OF THE TWO DATA CENTERS, I DON'T KNOW THE STATUS OF THAT. I WOULD NEED TO LOOK AND SEE IF
THEY. ALL APPLIED FOR IT. >> THANK YOU, COUNCILMEMBER HOLLAND.
>> DO YOU POSSIBLY KNOW THE THE SPIRIT, THE INTENTION OF OF ALLOWING SUCH AN EXEMPTION? I IT SEEMS IT JUST SEEMS ODD FOR A FOR PROFIT BUSINESS TO NOT TO NOT PAY SALES TAX.
[01:05:01]
>> YEAH. I, AND I DON'T WANT TO SPEAK FOR THE STATE. MY ASSUMPTION WOULD BE THAT A NUMBER OF YEARS AGO, THE IDEA WAS THAT THE STATE OF TEXAS WANTED TO ATTRACT DATA CENTERS AND AND BUSINESSES TO TEXAS. I THINK THAT THAT WAS PROBABLY VERY EFFECTIVE. AND NOW WE ARE IN A POSITION WHERE WE HAVE A LOT OF DATA CENTERS AND A LOT OF RELATED BUSINESSES BEING BUILT. AND I THINK NOW IT'S A MOVEMENT TOWARD POTENTIALLY SLOWING THAT DOWN.
>> DO YOU DO YOU KNOW, IF THERE'S A SUNDOWN CLAUSE ON THAT, WHERE THAT WILL WILL THAT
WILL TERMINATE AT SOME POINT? >> THERE IS NOT THAT I'M AWARE OF IN THE CURRENT EXEMPTIONS, ALTHOUGH I BELIEVE THAT THERE IS DISCUSSION AT THE STATE LEVEL GOING INTO THIS NEW
LEGISLATIVE SESSION TO LOOK AT MAKING CHANGES. >> SEEMS LIKE A TREMENDOUS SOURCE OF OF TAX REVENUE THAT'S GOING UNTAPPED. THANK YOU. THANK YOU, MAYOR.
>> MAYOR PRO TEM. >> I DON'T KNOW IF YOU CAN ANSWER THIS QUESTION BECAUSE IT'S PROBABLY VERY UNFAIR. AND SO IGNORE IT IF YOU CAN'T. IS THERE ANY IDEA OF HOW MUCH SALES TAX REVENUE THAT WOULD BE THAT WE'RE NOT COLLECTING BECAUSE WE CAN'T?
>> I DON'T HAVE THAT FIGURE OFF THE TOP OF MY HEAD. THAT'S PROBABLY SOMETHING THAT WE
COULD ESTIMATE. OKAY. YEAH. >> OKAY. >> THE THE LATEST INFORMATION I SAW STATEWIDE IS THAT THE SALES TAX EXEMPTION ADDS UP TO ABOUT $2 BILLION A YEAR RIGHT NOW STATEWIDE, WITH ALL THE DIFFERENT DATA CENTERS IS, IS THE LAST THING I READ OR APPROXIMATELY THAT. SO, OKAY. ANY OTHER QUESTIONS COMMENTS? OKAY. I THINK WE'RE GETTING
SOME CALCULATIONS READY. SURE. GO AHEAD. >> WELL, I WANT TO APPRECIATE, AMY FOR ANSWERING A LOT OF SORT OF A QUESTION I HAD ON THIS SLIDE ABOUT I KIND OF ESTIMATED LIKE 2% GROWTH, 3% GROWTH. AND THEN I WAS A LITTLE CONFUSED ON IF THAT WAS CONSERVATIVE OR NOT.
ARE THERE SPECIFIC PROJECTS WE FORESEE COMING ONLINE IN THE COMING YEAR THAT WOULD BE BOOSTING THIS? BECAUSE I KNOW WE ARE GROWING A LOT. WE'VE GOT THE JOBS AND THINGS.
>> COMING ALONG. THAT WAS THE ONE I WAS GOING TO SAY IS H-E-B, I THINK WILL BE A BIG BOOST FOR
US. >> SO THAT'S THAT'S PROBABLY WHAT'S GIVEN US SOME OF THE
MOST OPTIMISM ON THE SALES TAX. YES. OKAY. >> I HAVE BORROWED A LAPTOP WITH CALCULATIONS. OKAY. SO LOOKING AT THAT $10 MILLION IN IN CHANGE 1.4 IS FROM FROZEN VALUES. NEW VALUES ARE 3.922, O&M RATE IS 4.79 FOR A TOTAL CHANGE OF 10.1 MILLION. AND THEN WHEN WE LOOK AT THE DEBT SIDE, WE HAVE FROZEN NEW AND INS RATE, ADDING UP TO A $4.2
MILLION CHANGE. OKAY. >> CAN YOU TAKE THAT ONE MORE TIME?
>> OR LIKE MY ORIGINAL QUESTION WAS TRYING TO UNDERSTAND HOW MUCH OF THE 10 MILLION IS BPP?
>> WE'LL DO SOME MORE MATH. >> FOR YOU. OKAY? OKAY. >> THANK YOU. YEAH. COULD YOU GO AHEAD? COULD WE GO AHEAD AND REPEAT THOSE NUMBERS? OR IF YOU COULD JUST MAYBE SOMEBODY COULD JUST. WE'RE GOING TO PUT THAT ON A WHITE PAPER OR EMAIL AND JUST SEND IT OUT TO US. YEAH,
YEAH. THANK YOU MAYOR. >> I WAS JUST GOING TO COMMENT. I'M SORRY ABOUT MEMBER RUMORS.
COMMENT. CITY OF DENTON AND ENTITIES THAT THAT CONTRIBUTE TO CITY OF DENTON HAVE NEVER BEEN MORE CONCENTRATED IN BRINGING ECONOMIC DEVELOPMENT. DISCOVER DENTON, FOR EXAMPLE.
WE'VE NEVER HAD THIS THIS MUCH FOCUS ON BRINGING ECONOMIC DEVELOPMENT TO THE CITY. AND I THINK IT'S I THINK THOSE EFFORTS ARE WE'RE SEEING WE'RE SEEING THEM PAY OFF GOOD, GOOD
FOR GOOD FOR THOSE. GOOD FOR THOSE GROUPS. >> THANK YOU, COUNCIL MEMBER.
OKAY. WE'LL GET THOSE NUMBERS BACK TO YOU AND THEN WE'LL GO AHEAD AND MOVE FORWARD. ANY
OTHER QUESTIONS ON THE SALES TAX? OKAY. >> ALL RIGHT. SO WE'RE GOING TO MOVE ON TO ROI. IT IS A NO. AS WE DISCUSSED BEFORE, IT IS CAN BE AT TIMES ONE OF THE MOST MISUNDERSTOOD PARTS OF OUR REVENUE PICTURE. SO I WANT TO TAKE A MOMENT JUST TO WALK THROUGH THAT. IT DOES REPRESENT A PAYMENT IN LIEU OF TAXES FOR THE CITY'S UTILITIES, WHICH IS WATER, WASTEWATER AND ELECTRIC, BECAUSE THOSE UTILITIES DON'T PAY PROPERTY TAXES. THE CITY
[01:10:05]
OWNS THE INFRASTRUCTURE, THE LAND AND THE FACILITIES, AND THEY ARE TAX EXEMPT. SO ROI BALANCES THAT OUT. THE ROI FOR 2027 IS BUDGETED AT $21.5 MILLION AND IS CALCULATED BASED ON GROSS REVENUES WE'RE PROJECTING, OR INCLUDING 3% FOR WATER AND WASTEWATER, AND THEN 6% FOR ELECTRIC. THE ACTUAL AMOUNT THAT IS TRANSFERRED TO THE GENERAL FUND CAN CHANGE DEPENDING ON THE ACTUAL REVENUES, WHICH AGAIN, ARE DEPENDENT ON WEATHER CONDITIONS PRIMARILY, FOR EXAMPLE, A HOT SUMMER CAN INCREASE THAT REVENUE, BUT A COOLER SEASON OR SHIFTING CONSUMPTION PATTERNS CAN LOWER THAT REVENUE. ELECTRIC IS ALSO SUBJECT TO CHANGES THAT ARE MADE BY THE PUC, SO YOU'LL SEE THAT DIP IN 2024, AND THAT IS WHEN THE PUC CHANGED THE COST RATE AND THEY REDUCED THE UTILITIES REVENUES DRAMATICALLY, WHICH THEN LED TO LOWER ROI GOING TO THE GENERAL FUND. THE CITY THEN IMPLEMENTED THE TRANSMISSION COST RECOVERY FACTOR TO MITIGATE THIS CHANGE. IT IS A MAJOR CONTRIBUTOR TO THE GENERAL FUND, BUT IT'S ALSO TIED DIRECTLY TO THE UTILITY'S REVENUE. SO LIKE THE SALES TAX, IT CAN BE VOLATILE DEPENDINGPRIMARILY ON WEATHER CONDITIONS. >> OKAY, JUST ONE THING TO POINT OUT. SO BUT THIS NUMBER IN THE BUDGET IS CALCULATED BY THE FORECASTED BUDGET OF UTILITIES. LIKE IF ELECTRIC IS HALF A HALF $1 BILLION, WE'RE USING THAT TO HELP US ESTIMATE WHAT OUR ROI IS. BUT IF SOMEHOW IN THE UTILITIES, THERE'S A IF YOU MISS IT, I MEAN, IF IT'S EITHER WEATHER OR IT'S JUST SOMETHING THAT JUST DIDN'T MATERIALIZE, THEN IT CAN HAVE A DRAMATIC IMPACT BECAUSE I BELIEVE I THINK IF I RECALL CORRECTLY, THERE WAS AN ADJUSTMENT HERE OF ABOUT $1 MILLION BASED UPON, YOU KNOW, TRYING TO UNDERSTAND THE POTENTIAL, THE ELECTRIC FORECAST, I GUESS, AND I DON'T NEED TO KNOW THE ANSWER NOW, BUT I'D BE CURIOUS AS TO THAT MILLION DOLLAR, YOU KNOW, MODIFICATION IS BASED UPON HOW MUCH ELECTRICITY LOAD OR REVENUE DON'T NEED. THE SPECIFIC NUMBER IS BEING EITHER. HOW MUCH DOES IT TAKE TO GENERATE $1 MILLION WORTH OF ROI FROM FROM ELECTRIC? I DON'T NEED THAT NOW, BUT I JUST BE INTERESTED TO KNOW BECAUSE THAT'LL SHOW WHAT THE DIFFERENCE IN THE FORECAST WAS FROM THE ORIGINAL BUDGET TO TO THE CURRENT BUDGET. SO NO, THIS IS THIS IS VERY CRITICAL. AND I KNOW LAST YEAR, I MEAN, WE DON'T SHOW THE ACTUAL BUDGETED AMOUNTS FOR 25, 26, BUT IT WAS MUCH LARGER THAN THIS. I BELIEVE, IF I REMEMBER CORRECTLY, IS IN THE 30
MILLIONS OR SOMETHING. >> WE'VE MADE ADJUSTMENTS. >> YES. SO IT JUST BECAUSE THAT CAN BE A BIG HOLE IN THE BUDGET, IF IF THESE THINGS SOMEHOW REALLY MISS THE MARK. BUT JUST TO AGAIN SUMMARIZE, WE BUDGET THIS OFF OF THE FORECASTED UTILITY BUDGETS AND THEREFORE THAT THAT MAKES US SUSCEPTIBLE SOMETIMES TO THESE DIFFERENT MODIFICATIONS. CORRECT. OKAY.
ALL RIGHT. THANK YOU. >> OKAY. SO WE'RE GOING TO MAKE THE SHIFT INTO EXPENDITURES.
THIS SLIDE IS A REMINDER OF HOW MANY OF OUR ESSENTIAL SERVICES ARE SUPPORTED BY THE GENERAL FUND. INCLUDES PUBLIC SAFETY NEIGHBORHOOD SERVICES AS WELL AS ADMINISTRATIVE SERVICES. IT ALSO INCLUDES NON-DEPARTMENTAL. SO THAT IS FUNDING THINGS THAT ARE CITYWIDE AND DON'T BELONG TO A SINGLE DEPARTMENT WITHIN THE FUND. AND THE FUND SUPPORTS ABOUT 1000 FTE AND THE SERVICES RESIDENTS INTERACT WITH EVERY DAY. NEXT IS COMPENSATION. AND I KNOW THAT CASSEY COVERED THIS IN SIGNIFICANT DETAIL. BUT JUST TO REITERATE, FOR GENERAL GOVERNMENT, IT DOES INCLUDE AN UP TO 2.5% MERIT INCREASE AND A ONE TIME COLA FOR CIVIL SERVICE, INCLUDING POLICE AND FIRE. IT WOULD INCLUDE STEP INCREASES FOR FIRE. IT IS A 3% INCREASE TO BASE. AND THEN WE HAVE FUNDS SET ASIDE FOR POLICE MEET AND CONFER. WE ARE ALSO ABSORBING THE 4.93 OR NEARLY 5% INCREASE IN INSURANCE COSTS THIS YEAR, AND THEN PROVIDING A SUBSIDY TO OFFSET INCREASES THAT ARE RETIREES WHO ARE ON OUR HEALTH INSURANCE WOULD OTHERWISE EXPERIENCE. WE'RE CONTINUING THE ALTERNATIVE WORK SCHEDULE PILOT INTO THIS NEXT YEAR. IT IS HIGHLY VALUED BY OUR
[01:15:06]
EMPLOYEES, AND WE'LL BE BRINGING YOU AN UPDATE ON THAT AT THE CLOSE OF THE ONE YEAR PILOT OF THAT PROGRAM. TO THE RIGHT, YOU SEE SOME OF THE RESULTS OF OUR 2024 BIENNIAL EMPLOYEE SURVEY AND WILL BE CONDUCTING THAT SURVEY AGAIN THIS FALL. SO WE'LL SEE KIND OF WHAT WHAT CHANGES HAVE OCCURRED OVER THE LAST TWO YEARS. SO WE'RE GOING TO START NOW WITH HIGHLIGHTING SOME OF OUR DEPARTMENTS THAT ARE WITHIN THE GENERAL FUND. WE'LL START WITH COMMUNITY SERVICES. IT PLAYS A CRITICAL ROLE FOR RESIDENTS WHO ARE FACING HOUSING CHALLENGES, ECONOMIC HARDSHIPS OR CRISIS RELATED TO MENTAL HEALTH. THIS DEPARTMENT IS ALSO RESPONSIBLE FOR OVERSEEING PROPERTY CODE MAINTENANCE. IN 2027. THEY ARE FOCUSED ON PREVENTING AND RESOLVING HOMELESSNESS, INCREASING HOUSING AFFORDABILITY, IMPROVING MENTAL HEALTH CRISIS RESPONSE, PREPARING FOR THE UPCOMING CONSOLIDATED PLAN AND THEN ENSURING NEIGHBORHOOD QUALITY AND SAFETY. THIS DEPARTMENT HAS 25 FTE, SO THEIR BUDGET REMAINS REMAIN STABLE. IT IS SLIGHTLY LOWER THAN LAST YEAR. ONE OF THOSE DIFFERENCES IS IN PERSONNEL SERVICES. THAT IS JUST DUE TO A VACANCY, THEN A FILL AT A LOWER RATE. A RECLASS OF THAT POSITION THAT RESULTED IN THAT CHANGE. AND WE HAD A QUESTION AROUND THAT. ONE OF THE THINGS THAT YOU ARE GOING TO SEE ON EVERY SLIDE IN THIS PRESENTATION IS EITHER THE DEPARTMENT NOW HAS NOTHING BUDGETED IN 2027 FOR THEIR TRANSFER OUT, OR IT IS A GREATLY REDUCED NUMBER. THAT IS, THE REDUCTION IS BECAUSE OF A. CONSOLIDATION OF TRANSFERS FOR TECH SERVICES TO NON-DEPARTMENTAL. SO YOU'LL SEE THAT INCREASE THEN WHEN WE GET TO NON-DEPARTMENTAL. BUT JUST KNOW THAT WHEN YOU'RE SEEING THESE REDUCED OR ZEROED OUT TRANSFERS OUT ON THESE DEPARTMENT SLIDES, IT IS PRIMARILY BECAUSE OF THE TRANSFER TO TECH SERVICES. LOOKING AGAIN AT COMMUNITY SERVICES, THEY HAVE A BROAD PORTFOLIO. AND AGAIN, WHILE THEIR BUDGET IS SMALLER THAN SOME OF THE OTHER DEPARTMENTS, THEIR WORK DOES TOUCH SOME OF THE MORE VULNERABLE MEMBERS OF OUR COMMUNITY, AND IT CONTINUES TO SUPPORT THOSE SERVICES IN A BALANCED WAY. WITH THIS PROPOSED BUDGET. WE'RE GOING TO MOVE ON TO OUR COMMUNITY SERVICES PROGRAM FUNDING. SO ON THE NEXT TWO SLIDES, IT SHOWS THE CITY'S INVESTMENT IN ORGANIZATIONS THAT SUPPORT COMMUNITY HEALTH, STABILITY AND SAFETY, PROVIDING SERVICES RANGING FROM SHELTERING TO ADVOCACY FOR MENTAL HEALTH SUPPORT TO FAMILY ASSISTANCE. ALL FUNDING DECISIONS WERE REVIEWED BY THE COMMUNITY SERVICES ADVISORY COMMITTEE, WHO EVALUATES THE NEEDS AND ALIGNS THOSE WITH CAPACITY AND COMMUNITY INPUT. THAT THEN CONTINUES ON TO THIS NEXT SLIDE, WHERE YOU SEE THERE IS A TOTAL AWARD IN THE HUMAN SERVICES CATEGORY OF 586,000, WITH 415,000 OF THAT COMING FROM THE GENERAL FUND. AND THE BALANCE OF THAT AWARD THEN COMES FROM HUD DOLLARS. HOMELESSNESS INITIATIVES ARE COVERED ENTIRELY BY THE GENERAL FUND AND INCLUDES CONTRIBUTIONS TO OUR DAILY BREAD AND UNITED WAY. THOSE CONTRIBUTIONS TOTAL $608,000 FOR A TOTAL IN PROGRAM FUNDING OF $1.2 MILLION, WITH A LITTLE OVER A MILLION OF THAT COMING FROM THE GENERAL FUND.>> I HAVE A QUESTION ON THAT. ON THE PREVIOUS SLIDE, WHERE YOU SHOW THE ACTUAL DOLLAR AMOUNTS FOR THE EXPENDITURES, THE MISCELLANEOUS. IS THAT WHERE THIS NUMBER IS COMING IN? I MEAN, THE MISCELLANEOUS OF 1.4 MILLION IS THAT I GUESS MY QUESTION IS THESE FUNDS THAT YOU SHOW COMMUNITY SERVICE PROGRAM FUNDING THAT MONEY, IS THAT IN THIS BUDGET OR IS THAT
A SEPARATE PLACE? >> WE'VE. JESSE IS SAYING THAT IS IN THAT NUMBER.
>> GOOD MORNING, MAYOR AND COUNCIL. JESSE KENT, DIRECTOR OF COMMUNITY SERVICES. THAT'S CORRECT. THE THE COUNCIL INITIATIVES ARE INCLUDED IN THAT MISCELLANEOUS DOLLAR
AMOUNT. >> ALL RIGHT. THANK YOU. YES. COUNCIL MEMBER HOLLAND. YES.
>> TO THE NEXT SLIDE, PLEASE. SHOWING CASA. >> YES, SIR.
>> 40 WHAT. YOU KNOW, IN THE OVERALL SCHEME OF THINGS, THAT'S NOT A GREAT DEAL OF MONEY. BUT HOW WHERE DOES THAT COME FROM. THEIR VOLUNTEERS. HOW HOW DOES THAT HOW DO WE GET
[01:20:07]
THERE. >> IT IS FOR THOSE CLIENT SERVICES. SO THEY DO A LOT OF VOLUNTEERS. BUT THE ORGANIZATION ALSO HAS ADMINISTRATIVE COSTS TO TO ADMINISTER PROGRAMING, TO ADMINISTER THE VOLUNTEERS, TO DO BACKGROUND CHECKS TO LOTS OF
DIFFERENT COSTS THAT ARE KIND OF CALCULATED INTO THAT. >> IS THERE A CASA OFFICE.
>> I THINK THEY ALSO SERVE BENTON. >> YEAH. YEAH.
>> OKAY. YEAH. OKAY. THANK YOU. >> YEAH. GO AHEAD. >> I HOPE IT'S ALL RIGHT. I'M JUST MAKING A COMMENT IN THE COMING UP WITH THE AMOUNTS FOR THESE AWARDS, I LOOKED AS I WAS PREPARING FOR TODAY AND THE COMMITTEE MEETING IS NOT, YOU KNOW, VIDEOED AND AVAILABLE.
AND THERE WERE ALSO NOT MINUTES AVAILABLE TO TRY TO DRILL DOWN INTO, FOR EXAMPLE, WHY SPAN WENT FROM OVER 25,000 TO 0 AND TRYING TO SEE THE REASONING BEHIND IT. I WOULD JUST SAY IN THE FUTURE, IF THERE WAS A WAY TO POSSIBLY PRIORITIZE HAVING THE MINUTES, IT MIGHT BE HELPFUL SO THAT WE'RE NOT SPENDING TIME ON INDIVIDUAL PROGRAMS SO MUCH HERE DURING THIS SESSION. SO I HOPE THIS IS AN APPROPRIATE TIME TO MAYBE MENTION THAT JUST AS WE TRY TO DO OUR DUE DILIGENCE AND COME READY, BECAUSE WHEN WE GET WHEN WE GET INTO THOSE, I THINK WE ALL HAVE LOTS OF QUESTIONS. WE ALL WANT THE BEST FOR ALL OF THESE ORGANIZATIONS, AND IT WOULD HELP TO KNOW WHAT THE DISCUSSION WAS AND THE COMMUNITY PARTNERSHIP COMMITTEE
AND, AND THE REASONING BEHIND THAT. SO THANK YOU. >> COUNCILMEMBER, IF I MAY. SO
FOR SPAN, IT'S THAT THEY HADN'T SUBMITTED AN APPLICATION. >> ALL RIGHT. ANY OTHER
QUESTIONS? OKAY. THANK YOU JESSE. THANK YOU. >> ALL RIGHT. SO NEXT WE'LL LOOK AT DEVELOPMENT SERVICES, WHICH IS RESPONSIBLE FOR MANAGING DENTON'S GROWTH.
EVERYTHING FROM LAND USE TO ZONING, BUILDING SAFETY, DEVELOPMENT STANDARDS AND TRANSPORTATION. THEY'RE PRIORITIES FOR 2027 ARE STREAMLINING THE DEVELOPMENT PROCESS, IMPLEMENTING VISION ZERO, OVERSEEING SIGNIFICANT DEVELOPMENT PROJECTS.
DEVELOPMENT SERVICES HAS A TOTAL OF 83 FTE, WHICH REALLY DOES REFLECT THE SCALE OF THE WORK NEEDED TO MANAGE THE STRONG DEVELOPMENT PIPELINE WE'RE SEEING OVER THE LAST SEVERAL YEARS, EXCLUDING CHANGES IN THE TRANSFER OUT, THEIR BUDGET DOES REMAIN FAIRLY FLAT. SO NOW WE'LL LOOK AT THE LIBRARY. IT CONTINUES TO PLAY AN ESSENTIAL ROLE IN THE QUALITY OF LIFE THAT OUR COMMUNITY EXPERIENCES. ITS PRIORITIES FOR THIS NEXT YEAR ARE ADVANCING MAJOR FACILITY AND TECHNOLOGY IMPROVEMENTS, PREPARING FOR THE SOUTH BRANCH LIBRARY BOND PROJECT. THEY'RE GOING TO BE UPDATING WORKFLOWS AND COMMUNICATION TO IMPROVE CONSISTENCY. AND THEN THEY ARE EXPANDING DIGITAL ACCESS, INCLUDING EXPLORING ONLINE LIBRARY CARD APPLICATIONS AND RENEWALS. THE LIBRARY HAS 51.5 FTE. AGAIN, EXCLUDING THOSE TRANSFERS, THE LIBRARY'S BUDGET DOES REMAIN FAIRLY FLAT. WHILE SERVICE LEVELS REMAIN FULLY SUPPORTED. AND I BELIEVE THERE WAS A QUESTION ABOUT WHERE THEY HAVE THEIR SUBSCRIPTIONS AND WHERE THEY HAVE THEIR BOOKS. SUBSCRIPTIONS WOULD BE SEEN IN THE OPERATIONS LINE, AND THEN THE PURCHASE OF BOOKS WOULD BE SEEN IN THE FIXED ASSET LINE, WHERE YOU HAVE A BUDGET OF $407,000. NEXT, WE'LL LOOK AT PARKS AND RECREATION. THEY'RE RESPONSIBLE FOR PARKS, NATURAL SPACES, RECREATION PROGRAMS, FACILITIES, TRAILS, SPECIAL EVENTS, AND SO MUCH MORE. THEIR PRIORITIES FOR 2027 INCLUDE IMPLEMENTING AN ASSET MANAGEMENT SYSTEM. YOU'LL SEE THAT IN SEVERAL OF OUR DEPARTMENTS AS WE GO THROUGH THE PRESENTATION TODAY, COMPLETING THEIR CURRENT PARK PROJECTS, ESPECIALLY THOSE THAT HAVE TIME SENSITIVE DEADLINES.
AND THEN THEY ARE PREPARING FOR REACCREDITATION THROUGH CAPRA THIS NEXT YEAR. THEY HAVE 108 FTE. WE DID SEE SOME MODERATE INCREASES IN THEIR BUDGET, AND IT DID REFLECT INFLATIONARY PRESSURES THAT THEY ARE FACING AND DELIVERING THEIR PROGRAMING AND SERVICES. NEXT UP, WE HAVE ANIMAL SERVICES, WHICH HAS SEEN AN INCREASING DEMAND AND RISING COSTS RELATED TO CARE, MEDICAL SERVICES AND SHELTER MANAGEMENT, ANIMAL SERVICES PRIORITIES FOR 2027 INCLUDE OVERSEEING THEIR
[01:25:08]
INTAKE DIVERSION PROGRAM, ESPECIALLY AS THE ANIMAL SHELTER IS BEING REMODELED AND THEN STRENGTHENING THEIR PARTNERSHIPS TO IMPROVE VETERINARY CAPACITY. THE ANIMAL SERVICES DEPARTMENT HAS 29.5 FTE. THEIR BUDGET IS INCREASING SIGNIFICANTLY TO ABOUT $5.85 MILLION, AND AGAIN, THIS IS DUE TO THE HIGHER COSTS FOR ANIMAL CARE AND INCREASED SERVICE LEVELS. BECAUSE OF THIS, I'M GOING TO TURN THE PRESENTATION OVER TO THE ANIMAL SERVICES DIRECTOR, NIKKI, AND SHE IS GOING TO SPEAK TO YOU ABOUT SOME OF THOSE PRESSURES THATTHEY ARE FACING. >> GOOD MORNING, MAYOR, COUNCIL NIKKI, DIRECTOR OF ANIMAL SERVICES. I WANT TO APPRECIATE THE TIME AND THANK YOU TO AMY FOR HELPING US PUT THIS TOGETHER. SO FOLLOWING THE 2023 INTERNAL AUDIT, THE 2024 AUDIT AND REVIEWS BY EXTERNAL CONSULTANTS AND AT THE DIRECTION OF COUNCIL ANIMAL SERVICES, IMPLEMENTED SEVERAL OPERATIONAL CHANGES. AND JUST THE WAY WE DO BUSINESS IN GENERAL, THAT HAS LED TO A HIGHER EXPECTED LEVEL OF SERVICE. PROVIDED THESE CHANGES IN POLICIES AND PROCEDURES, AND THE WAY OF OPERATING IN GENERAL HAS SIGNIFICANTLY IMPACTED THE COST OF DOING BUSINESS. SO I WANTED TO SHARE A LITTLE BIT OF JUST HOW WE GOT THERE, KIND OF THE EVOLUTION AND THE PRICE ESCALATIONS. AND WE ARE CURRENTLY EXCEEDING OUR BUDGET FOR FISCAL YEAR 26 IN SEVERAL AREAS. SO JUST A SUMMARY, A LITTLE BIT OF THE OPERATIONAL CHANGES HERE. AUDIT RECOMMENDATIONS. SO THE 2024 AUDIT FOLLOW UP IDENTIFIED THE NEED FOR 33 SHELTER FEES TO SUPPORT THE ENHANCED CARE MODEL. TO MEET THIS REQUIREMENT, ANIMAL SERVICES WAS UTILIZING TEMPORARY SERVICES, CONTRACTED LABOR FROM OUR DAILY BREAD AND THE READY TO WORK PROGRAM. WE DID NOT HAVE THAT ALLOCATED IN THE 26 BUDGET, AND PROJECTIONS FOR FISCAL YEAR 27 IS AT $215,000. SO THAT'S THAT'S A SIGNIFICANT INCREASE THERE. LET'S SEE, IN OCTOBER OF 24, WE CREATED AND BEGAN IMPLEMENTING THE NEW RESPONSIBLE EUTHANASIA POLICY THAT HAD A SIGNIFICANT CHANGE ON THE WAY WE OPERATE. THAT POLICY WAS ADOPTED BY COUNCIL IN MAY OF 2025, AND HAS BEEN A MAJOR CONTRIBUTOR TO MAINTAINING OUR 90 PLUS LIVE RELEASE RATE, BUT IT HAS ALSO LED TO A LONGER LENGTH OF STAY FOR ANIMALS. WE'RE UP FROM 17 DAYS TO 27 DAYS ON AVERAGE, AND A HIGHER DAILY IN-HOUSE COUNT, UP FROM 205 TO 300 PLUS ANIMALS A DAY IN OUR CARE. SO ESSENTIALLY, WE'RE PROVIDING A HIGHER LEVEL OF CARE FOR OUR ANIMALS AND FOR LONGER, WHICH MEANS MORE FOOD, MORE TREATMENT, MORE MEDICATIONS, MORE VACCINATIONS ON A DAILY BASIS.
SO THAT HAS SIGNIFICANTLY LED TO A HIGHER INCREASED COST AS WELL. ENRICHMENT AND WELLNESS.
SO ENSURING WE PROVIDE A HIGH LEVEL OF QUALITY CARE FOR ANIMALS HAS BEEN OUR CHARGE FROM COUNCIL AND OUR COMMUNITY. IN FISCAL YEAR 25. FOLLOWING THE AUDIT, ANIMAL SERVICES ADDED A BEHAVIOR ENRICHMENT AND PLACEMENT COORDINATOR TO STAFF. OUR BEHAVIORISTS HAS WORKED TO CREATE DAILY ENRICHMENT AND WELLNESS PROGRAMS TO ENSURE ANIMALS ARE MAINTAINING THEIR WELL-BEING. THE BEHAVIORS ALSO IMPLEMENTS A BEHAVIOR MODIFICATION PROGRAM AND BEHAVIOR INTERVENTION PROGRAMS TO PROMOTE ADOPTABLE BEHAVIORS. AS ANIMALS STAY LONGER IN THE SHELTER, THEY SEE A DECLINE IN THEIR BEHAVIOR. AND SO WE HAVE A VERY ROBUST ENRICHMENT PROGRAM WHICH ALLOWS US TO HAVE MORE SUCCESSFUL PLACEMENTS. WE HAVE OUR 100 PLUS CLUB AND WE'VE SEEN A GREAT SUCCESS RATE IN PLACEMENT THERE. SO WE DO NOT EXPERIENCE THAT SAME DECLINE THAT A LOT OF SHELTERS DO, BECAUSE WE HAVE OUR ENRICHMENT PROGRAM. ALSO, FOLLOWING OUR RECOMMENDATIONS, WE REDEVELOPED OUR VOLUNTEER AND FOSTER PROGRAMS. THOSE ARE VERY ROBUST. NOW WE'VE GONE FROM AN AVERAGE OF ABOUT, I THINK OUR GREATEST LAST IN DECEMBER OF 24. OUR HIGHEST NUMBER OF VOLUNTEER HOURS IS AROUND 450. WE JUST BROKE OVER 1000 HOURS FOR JUNE FOR VOLUNTEERS. SO WE HAVE ESSENTIALLY DOUBLED OUR OUR PROGRAM. BUT OUR FOSTER PROGRAMS, OUR VOLUNTEER PROGRAMS, BEHAVIOR PROGRAMS, ALL OF THOSE REQUIRE SUPPLY COSTS TO MAINTAIN THEM. AND SO THAT HAS DRIVEN UP OUR COSTS AS WELL. AND LASTLY, OUR GREATEST INCREASE IN COSTS HAS COME FROM OUR MEDICAL CARE, OUR TREATMENT AND CARE FOR OUR ANIMALS. PREVIOUSLY, MEDICAL CONDITIONS THAT WERE COMPLEX OR UNABLE TO BE TREATED IN HOUSE ARE TOO EXPENSIVE TO TREAT WITH OUTSIDE SERVICES. THOSE ANIMALS DIDN'T RECEIVE THE CARE THEIR EUTHANIZED FOLLOWING DIRECTION FROM COUNCIL. WE HAVE WORKED TO ENSURE THAT TREATMENT IS PROVIDED TO EVERY ANIMAL IN OUR CARE CASES THAT CAN'T BE TREATED IN-HOUSE WITH OUR VETERINARY CARE IN-HOUSE, OR IF IT'S TOO SPECIALIZED, WE DO OUTSOURCE THAT, AND WE WORK WITH PARTNERS TO MAKE SURE THAT THE ANIMALS RECEIVE THE CARE THEY NEED AND THEN ARE PLACED. ADDITIONALLY, WE'VE EXPANDED THE DIAGNOSTICS WE RUN IN-HOUSE
[01:30:02]
AND THE MEDICATIONS THAT WE PURCHASE TO TREAT. I'LL GIVE YOU AN EXAMPLE. FIP IS A FELINE INFECTIOUS PERITONITIS. IT'S A VIRAL DISEASE. IT WAS PREVIOUSLY NOT TREATED. AND IT IS A VERY EXPENSIVE TO TREAT, HAS A HIGH MORTALITY RATE. BUT NOW WE DO TEST AND TREAT FOR THAT. SO NOT ONLY DO WE BUY THE TESTING MATERIALS FOR THAT, BUT THEN THE TREATMENT FOR IT AND THE TREATMENT FOR THAT IS 84 DAYS. IT'S A 12 WEEK TREATMENT PROGRAM. SO WE'RE KEEPING THAT ANIMAL IN-HOUSE, PROVIDING THAT TREATMENT. BUT WE HAVE HAD A GREAT SUCCESS RATE. AND THEN THOSE ANIMALS GET PLACED. SO THAT HAS AN EXPANDED COST AS WELL. RSVP, OUR CONTRACTED VETERINARY SERVICE HAS SEEN A LARGE INCREASE IN SPENDING AS WELL. THAT'S KIND OF TWOFOLD.ONE, WE UPDATED OUR CONTRACT WITH THEM THAT THE PRICES HAD NOT INCREASED OVER THE LAST FIVE YEARS. SO THEY DID INCREASE THEIR PRICES, WHICH HIT OUR OUR EXPENDITURES THERE.
SO INCREASE THEM A LOT. BUT THEN ALSO WE INCREASED OUR OUTSIDE CONTRACTED SERVICES THROUGH RSVP. SO LIKE WORKING WITH DENTON COUNTY ANIMAL ER, WE PASS THROUGH THE COST THROUGH RSVP SO THAT WE CAN PROVIDE THOSE OUTSIDE SERVICES. SO ALL OF THOSE HAVE GREATLY EXPANDED OUR COST FOR OUR CONTRACT SERVICES THROUGH RSVP. SO THE TO SUMMARIZE, OUR CURRENT LEVEL OF SERVICE HAS LED TO A SUSTAINED RELEASE RATE ABOVE 90%, WHICH IS A GOAL OF OURS AND A GOAL OF THE COUNCIL IN THE COMMUNITY. IT HAS INCREASED OUR LENGTH OF STAY FOR SHELTER ANIMALS, BUT WE HAVE A HIGHLY. A HIGHER DAILY COUNT OF ANIMALS IN THE SHELTER AND INCREASED MEDICAL CARE AND SUPPLY COSTS. ALL OF THAT'S REFLECTED IN THE OUR BUDGET THAT IS EXCEEDING OUR FISCAL YEAR 26 ALLOCATION. WE HAVE TRIED TO EMPLOY SOME MITIGATION EFFORTS. WE DID ESTABLISH A PREQUALIFIED VETERINARY SERVICE PROVIDER TO REMOVE THE PASS THROUGH COSTS, AND SOMETIMES WE GET DISCOUNTS WHEN WORKING DIRECTLY WITH THOSE PROVIDERS.
AND WE HAVE ONGOING EXPENDITURE REVIEW MEETINGS WITH FINANCE AND PROJECTION MODELING. WE TRIED TO CUT WHERE WE WERE ABLE. HOWEVER, CURRENT EXPENDITURES HAVE NOT BEEN ABLE TO BE SIGNIFICANTLY REDUCED TO ALIGN WITH THE FISCAL YEAR 26 GENERAL FUND ALLOCATION. AND THE BOTTOM LINE KIND OF TAKEAWAY FOR COUNCIL IS THAT AT THE CURRENT SERVICE LEVELS, WE CANNOT SUSTAIN THEM WITH THE FISCAL YEAR 26 ALLOCATION, WHICH IS WHY YOU SEE A SIGNIFICANT INCREASE IN OUR REQUEST FOR FISCAL YEAR 27. AND WITH THAT, I'LL ANSWER ANY QUESTIONS OR
TURN IT BACK OVER TO AMY. >> I'VE GOT A COUPLE QUESTIONS. IF SOMEBODY DOESN'T. ANY QUESTIONS. SO I KNOW THAT WE'RE GOING TO EMBARK ON THE EXPANSION HERE SOON. YES, SIR.
AND I THINK YOU MENTIONED THAT THE DAILY COUNT HAS GONE FROM 205 TO 300 IN OUR CURRENT FACILITY. WHAT IS THE ANTICIPATED CAPACITY ONCE THE ADDITION GETS COMPLETED? WHAT
ARE WE EXPECTING? >> IT'LL BE RELATIVELY THE SAME. IT'LL CHANGE IN A LITTLE BIT OF FUNCTION AS FAR AS OUR ISOLATION AREAS WILL BE BIGGER, BUT BUT THE CAPACITY WILL STAY
RELATIVELY THE SAME. >> OKAY. AND SO THEN LOOKING AT YOUR WHERE IT TALKS ABOUT THE SPECIFIC COSTS ON THE VETERINARY SERVICES AND SO FORTH HERE. SO IN 26, THERE WAS A BUDGET AMOUNT OF BASICALLY 1.1 MILLION FOR FY 26 BUDGET. AND THE PROJECTED END OF THAT IS 2 MILLION, 2.1 MILLION. SO THAT I'M ASSUMING IF THERE'S EITHER CAPACITY FROM SAVING SOME OTHER PARTS OF THE CURRENT BUDGET, THAT THAT'S JUST COMING TO THE BOTTOM LINE. AND IF WE HAVE SAVINGS SOMEWHERE ELSE. OKAY. SO I MEAN, THAT'S, THAT'S HUGE. IT IS, IT'S THAT'S HUGE.
OKAY. ALL RIGHT. AND DO YOU ANTICIPATE WITH THE, SO WHEN YOU SAY THAT THE CAPACITY IS NOT REALLY GOING TO INCREASE WITH THE EXPANSION, THEN THESE COSTS SHOULD LEVEL OUT. WE'RE SEEING WE'RE GETTING UP TO WHERE THEY NEED TO BE DEPENDING ON IF WE. BUT IF THE CERTAINLY IF THE THE NUMBER OF ANIMALS THAT WE CARE FOR INCREASES, THAT'S OKAY.
>> YES, WE WOULD HOPE SO. WE WOULD HOPE THAT IT WOULD KIND OF LEVEL OFF ONCE WE GET. THIS IS OUR EXPECTED LEVEL OF CARE. THIS IS WHAT WE'RE PROVIDING. HOWEVER, WE CAN'T CONTROL WHAT'S GOING TO COME THROUGH OUR DOOR. AND WE'RE ALSO COMPETING WITH THE INCREASED COSTS FOR GOODS AND SERVICES. SO NOT ONLY ARE WE TREATING MORE, BUT OUR COSTS FOR REGULAR SURGICAL SUPPLIES, MEDICAL SUPPLIES, THEY'RE THEY'RE GOING UP AS WELL WITH THE COST OF
GOODS AND SERVICES. SO. >> WELL, AND I DO EXPECT WE'LL HAVE ADDITIONAL PERSONNEL REQUESTS AS WE MOVE INTO THE NEW SHELTER. AND BECAUSE I MEAN, THAT WAS ONE OF THE THINGS FROM THE AUDIT IS THAT WE DO NOT HAVE THE CORRECT NUMBER OF STAFFING JUST FOR THE ANIMALS THAT WE HAVE NOW. NIKKI HAS TRIED TO MITIGATE THAT THROUGH THE USE OF TEMPORARY SERVICES,
[01:35:02]
BUT I DO EXPECT TO HAVE ADDITIONAL PERSONNEL REQUESTS IN THE FUTURE.>> OKAY. YES, COUNCILMEMBER. >> MAYOR, I'VE BEEN TO THE TO THE TO THE SHELTER. IT'S SPOTLESS. IT'S IT'S SO WELL RUN. I APPRECIATE YOU GUYS TAKING CARE OF MY FRIENDS.
>> YEAH. THANK YOU. I HAVE FANTASTIC STAFF. THEY DO A GREAT JOB.
>> THANK YOU. OKAY. ANY OTHER QUESTIONS? AT LEAST AT THIS STAGE? AND JUST TO GIVE YOU A HEADS UP, AFTER WE AFTER WE'RE FINISHED WITH THE ANIMAL SERVICES PRESENTATION, WE'RE GOING TO JUST TAKE A QUICK 5 TO 8 MINUTE BREAK SO WE CAN GO INTO POLICE AND FIRE AND WE'LL TAKE A BREAK AT THAT POINT. SO ANY QUESTIONS FOR NIKKI? OKAY. THANK YOU VERY MUCH. APPRECIATE
IT. THANK YOU FOR THE INFORMATION. >> YOU WANT TO TAKE A.
>> BREAK HERE? YEAH. OKAY. YES. IF WE WRAP THAT UP. SURE. YOU BET. OKAY.WELCOME, EVERYBODY, BO THIS MEETING OF THE CITY COUNCIL ON SATURDAY, AUGUST THE 8TH, 2026. IT IS 1014. WE'RE IN OUR BUDGET WORKSHOP THIS MORNING. AND SO WE WILL CONTINUE WITH THE PRESENTATION.
THANK YOU VERY MUCH. >> CONTINUING WITH THE FIRE DEPARTMENT, WHICH CONTINUES TO DELIVER HIGH QUALITY EMERGENCY RESPONSE, MEDICAL CARE, FIRE SUPPRESSION, HAZMAT MANAGEMENT AND COMMUNITY RISK REDUCTION SERVICES. THEIR PRIORITIES FOR THIS NEXT YEAR ARE COMPLETING THE CONSTRUCTION AND OPENING OF FIRE STATIONS FIVE AND SIX, PUBLISHING THEIR NEW FIVE YEAR STRATEGIC PLAN. THEY'LL BE CONDUCTING A STAFFING ANALYSIS TO MATCH THEIR RESOURCES WITH CALL VOLUME AND ANTICIPATED GROWTH. AND THEN AS WE MENTIONED EARLIER, WE WILL BE PROVIDING STEP INCREASES AND A 3% BASE PAY INCREASE IN OUR FIRE DEPARTMENT IN ORDER TO STAY COMPETITIVE AND PREPARE FOR THEIR NEXT MEET AND CONFER NEGOTIATIONS. FIRE HAS 237 FTE.
THEIR BUDGET REFLECTS INCREASES IN PERSONNEL COSTS, MEDICAL SUPPLIES AND EQUIPMENT THAT IS NEEDED TO OUTFIT NEW FIRE VEHICLE. YOU'LL SEE THAT IN THAT REMAINING. THE REMAINING DOLLARS IN THAT TRANSFERS OUT LINE ITEM THAT WILL PAY FOR THE OUTFITTING OF THE VEHICLE.
THERE ARE SOME EXTERNAL FACTORS IMPACTING THEIR BUDGET THIS YEAR. THAT IS THE EXPIRATION OF THE SAFER GRANT, WHICH PROVIDED AS MUCH AS $2.5 MILLION TOWARDS PERSONNEL COSTS IN PRIOR YEARS.
AND THEN WE'VE ALSO SEEN A REDUCTION IN THE TAX REIMBURSEMENT FROM THE STATE OF ABOUT $1 MILLION. SO WE HAVE ADJUSTED THEIR BUDGET IN ORDER TO ACCOMMODATE THESE REDUCTIONS
IN REIMBURSEMENTS AND GRANT DOLLARS. >> YES, MAYOR PRO TEM.
>> I JUST HAD TWO QUESTIONS. AND ONE IS INFORMATIVE ON MY END THAT I NEED HELP BEING REMINDED OF THEIR UNION GOALS AS FAR AS. BASE PAY INCREASE TO THEIR SALARY. WHAT IS IT? IT'S
IT'S LIKE 5% COMPARED TO THE REGION. >> AND HAVE CHIEF HEDGES COME
UP AND SPEAK TO YOU ON THAT. >> CONTAGIOUS FIRE CHIEF? >> YEAH. IN THE CONTRACT THERE'S A PAY PHILOSOPHY. IT'S ACTUALLY 13 COMPARATOR CITIES THAT BOTH THE ASSOCIATION AND CITY MANAGERS AGREED UPON TO SURVEY ANNUALLY. AND THEY TAKE THAT AND CALCULATE AN AVERAGE MARKET. AND THEN THE GOAL IS MARKET PLUS 5% TO KEEP EVERYBODY COMPETITIVE.
>> OUT OF CURIOSITY, DO YOU KNOW WHAT THE DOLLAR AMOUNT WOULD BE INSTEAD OF 3% FOR IT
TO BE THREE AND A HALF OR OR FOUR? >> I THINK WE DO HAVE THAT
NUMBER. >> OKAY. >> CHRISTINE TAYLOR, ASSISTANT CITY MANAGER WE DID CALCULATE THAT BECAUSE ORIGINALLY WHEN YOU SAW THE FORECAST ON JULY 14TH, WE HAD A 2% FOR ALL CITY EMPLOYEES. SO WHEN WE GOT THE TAX RATE NUMBERS, WE STARTED LOOKING AT WHAT WE COULD ADJUST FOR COMPENSATION. AND SO THE 1% INCREASE FOR FIRE IS AROUND 300,000. BUT THAT'S A COUPLE DIFFERENT THINGS. THAT'S A CAVEAT OF US STARTING IN JANUARY. SO IT'S JANUARY THROUGH THE END OF THE FISCAL YEAR. SO INCREASING THAT
ADDITIONAL 1% TRANSLATED TO ROUGHLY $300,000. >> HALF PERCENT, THEN 150, 150.
>> YES. AND THAT'S JUST THE PRORATED THE JANUARY TO SEPTEMBER COST. IT'S NOT A FULL
YEAR COST. >> JUST WANT US TO KEEP THAT IN MIND. SURE. OKAY. IT'S NOT AS
MUCH AS I THOUGHT IT WOULD BE. YEAH. >> ON THE REIMBURSEMENTS OF THE SAFER GRANT AND REDUCED BE REIMBURSEMENT. WHAT DID THAT AMOUNT TO LAST YEAR? I MEAN,
[01:40:06]
WHAT DID WE GET? IN OTHER WORDS, WHAT ARE WE LOSING? WHAT ARE WE HAVING TO MAKE UP?>> I KNOW IN THE CURRENT YEAR, THE SAFER IS ABOUT 300,000. I'LL HAVE TO PULL THOSE NUMBERS TOGETHER. I PULLED PERSONNEL COSTS, BUT ONLY FOR THIS NEXT YEAR. OTHERWISE, I WOULD HAVE HAD THAT HISTORY RIGHT IN FRONT OF ME. BUT WE CAN WE CAN GET THAT NUMBER ABOUT TWO YEARS,
2.5. OKAY. DID YOU JUST. >> THE CONTEXT OF THE LAST SAFER GRANT? SO WE'VE APPLIED NUMEROUS DIFFERENT TIMES AND SUCCESS WAS A THREE YEAR PERFORMANCE PROGRAM. SO, YOU KNOW, AT THE END OF 36 MONTHS, THE CITY HAS TO TAKE THAT FULL COST OF THAT EMPLOYEE AS WELL.
THE LAST WAS ACTUAL FOR STATION NINE FOR THE 12 PERSONNEL. SO THAT'S PROBABLY BEEN OUR BIGGEST SAFER IN THE PAST 10 TO 12 YEARS. SO THAT WAS ORIGINALLY I THINK AROUND 2.2 TO 2.1 MILLION ANNUALLY, THAT THE GOVERNMENT WAS REIMBURSING THE CITY FOR 100% OF THREE
YEARS. >> OKAY. AND IS THAT ARE THOSE GRANTS STILL AVAILABLE OR I MEAN, DO THEY ROLL OFF OR ARE YOU ONLY ELIGIBLE? SO MANY, YOU KNOW, SO MUCH TIME AFTER YOU'VE
HAD ONE. >> THEY ARE AVAILABLE ANNUALLY SINCE COVID, THE GOVERNMENT ACTUALLY MOVED TO A NON REIMBURSEMENT FROM THE ENTITY. SO IT'S 100% COST COVERAGE BY THE GOVERNMENT. AND THEN 36, 37 MONTH IS WHENEVER THE CITY ACTUALLY TOOK IT UPON THEMSELVES. THEY HAVE WENT BACK TO THE ORIGINAL, WHICH IS THE 6535 SPLIT AS WELL. SO IN THE FUTURE ON STATION TEN, WE MAY BE LOOKING AT APPLYING FOR ANOTHER ONE AS WELL.
>> OKAY, GOOD. ALL RIGHT. THANKS. >> ALL RIGHT. SO NEXT WE'LL MOVE ON TO THE POLICE DEPARTMENT, WHICH DOES REMAIN ONE OF THE LARGEST COMPONENTS IN TERMS OF EXPENDITURES FOR THE GENERAL FUND. THE POLICE DEPARTMENT CONTINUES TO FOCUS ON RECRUITMENT AND RETENTION, ESPECIALLY AFTER A TIME OF HIGHER THAN NORMAL VACANCIES.
THEIR PRIORITIES GOING INTO THIS NEXT YEAR INCLUDE RECRUITING AND RETENTION OF POLICE OFFICERS. COMPLETING THAT MEETING FOR MEET AND CONFER NEGOTIATION, WHICH WILL ACTUALLY IS INTENDED TO BE COMPLETE IN SEPTEMBER. AND THEN THEY ARE CONTINUING TO FOCUS ON THE USE OF TECHNOLOGY TO IMPROVE EFFICIENCY, IMPROVE SAFETY AND RESPONSIVENESS.
POLICE DEPARTMENT HAS 335 FTE. AT FIRST GLANCE, THEIR BUDGET DOES LOOK FAIRLY FLAT, BUT THERE IS A SIGNIFICANT INCREASE IN PERSONNEL COSTS. THIS IS DUE TO CHANGES IN COMPENSATION FOR NON CIVIL SERVICE. WE TALKED ABOUT THAT 2% INCREASE INSURANCE COSTS COVERAGE ALSO TALKED ABOUT EARLIER IN TODAY'S PRESENTATION. WE DO HAVE STEP INCREASES FOR OUR CIVIL SERVICE EMPLOYEES BUILT INTO THAT INCREASE. WE RIGHTSIZED OVERTIME FOR THE DEPARTMENT. WE ARE BUDGETING APPROPRIATELY FOR INCENTIVES AND ASSIGNMENT PAY. SO WE DID SEE AN INCREASE FOR THOSE TWO ITEMS WITHIN THE PERSONNEL SERVICES. AND THEN WE HAVE SET ASIDE DOLLARS AS PART OF THAT MEET AND CONFER NEGOTIATION PROCESS THAT WE ARE GOING THROUGH.
>> ON, ON THAT. WHERE IS THAT IN THIS? I MEAN, THERE'S BEEN SOME PLACEHOLDER, I THINK IS WHAT IT WAS TERMED, IS THAT IN THE PERSONNEL SERVICES BUDGET, IS THAT WHERE THAT IS? YES, SIR.
OKAY. AND HOW MANY HOW MANY NEW POSITIONS, WHETHER THEY BE OFFICERS OR IS BUILT INTO THAT
NEW PROPOSED. DO WE KNOW. >> THERE ARE NO NEW POSITIONS? >> THERE'S NO NEW POSITIONS.
HOW MANY VACANCIES DO THEY HAVE? OH. >> I HAVE A NUMBER IN MIND, BUT
I WOULD LOVE FOR CHIEF SOLACE TO CONFIRM THAT. >> GOOD MORNING, MAYOR COUNCIL.
TONY SALAS. ENERGY POLICE. SO CURRENTLY THE POLICE DEPARTMENT IS BY ORDINANCE ALLOWED 220 FTE FOR SWORN AND 115 FOR NON-SWORN PROFESSIONAL STAFF MEMBERS. SO RIGHT NOW, CURRENTLY, WE'RE AT
PROBABLY ABOUT 24 VACANCIES OF SWORN PERSONNEL. >> AND SWORN TRANSLATES INTO PATROL OFFICERS OR SWORN OFFICERS THAT ARE COMMISSIONED BY THE STATE. HELP ME
UNDERSTAND. YES, YES. >> SO SWORN IS JUST BASICALLY ANYBODY. ANY OFFICER HAS ARREST
AUTHORITY. OKAY. YES. >> YES. THE BUDGET INCLUDES ALL OF THOSE BEING FILLED. SO
THAT'S WHY YOU'RE SEEING THE. >> YEAH, WE'RE 100%. ALLOTTED FOR EVERY VACANCY.
>> OKAY. WELL, THAT'S I GUESS THAT WAS THE POINT OF MY QUESTION. SO IN PERSONNEL SERVICES, THAT'S ACCOUNTING, THAT'S FILLING THESE VACANCIES THAT YOU'RE DESCRIBING. CORRECT.
[01:45:01]
YOU JUST DESCRIBED. IS THAT CORRECT? >> YES. THE CURRENT BUDGET RIGHT NOW HAS FUNDING FOR A VACANCY IN BOTH NON NON-SWORN PROFESSIONAL STAFF AND SWORN.
>> OKAY. AND I GUESS DO YOU KNOW OR SOMEBODY CAN SHARE BECAUSE I KNOW MAYOR PRO TEM TALKED ABOUT WHAT'S A 1% INCREASE. YOU KNOW, LIKE HOW MUCH WOULD THAT BE FOR FIRE? DO WE KNOW WHAT WOULD BE IF YOU HAD A 1% INCREASE FOR POLICE IN ADDITION TO WHAT IS THAT 1%
INCREMENT TRANSLATE INTO AS TO DOLLARS? >> IT'S APPROXIMATELY THE SAME.
WHEN WE LOOKED AT BRINGING POLICE UP TO MARKET THAT WE DO THEIR MARKET SURVEY, AS CHIEF HEDGES TALKED ABOUT, THEY HAD IN THEIR LOWER RANKS, THE RECRUIT AND THE OFFICER WERE MORE THAN 4% AWAY FROM MARKET. SO THE INITIAL NUMBER TO BRING THEM UP TO MARKET IS ABOUT A MILLION. AND THEN WE'RE LOOKING AT AROUND 300,000 FOR EVERY PERCENT INCREASE ABOVE MARKET.
>> OKAY. >> AND WE'RE STILL IN ACTIVE NEGOTIATIONS.
>> I UNDERSTAND THAT, YES. UNDERSTAND? YEAH. OKAY. COUNCIL MEMBER HOLLAND.
>> CHIEF, DO YOU ANTICIPATE FILLING THOSE 24? WAS IT 24? 24. 24 VACANCIES IN FISCAL YEAR 27.
>> NOT ALL OF THEM. JUST BECAUSE OF THE WAY OUR ACADEMY IS STAGGERED RIGHT NOW. WHAT WE'RE DOING IS WE TAKING A LOOK AT OUR PIPELINE COMING IN. SO WE'RE CHANGE WE'RE ENHANCING OUR RECRUITING STRATEGIES WITH SOFTWARE AND THE WAY WE ARE ACTUALLY REACHING OUT TO CANDIDATES AND THE WAY WE'RE PROCESSING THEM AND RETURN OUR ACADEMY AS WELL. WE'RE INCREASING THE NUMBER OF ACADEMIES THAT WE'RE TRAINING EACH YEAR FROM 2 TO 3. SO AS THEY STAGGER IN WITHIN THE BUDGET YEAR, WE DON'T HAVE THE CAPACITY TO FILL THEM ALL IN ONE BUDGET YEAR. SO I'M MY GOAL IS WITHIN TWO YEARS WILL BE FILL THOSE 24 VACANCIES.
>> SO BY FISCAL YEAR 28 YOU WOULD YOU WOULD THINK. >> SO THAT.
>> IS OUR GOAL. OKAY. VERY VERY GOOD. THANK YOU. >> SO QUESTION JUST FROM A BUDGET PROCESS PERSPECTIVE, AND I THINK THIS IS WHERE AT LEAST I HAD SOME OBSERVATIONS WHEN WE TALK ABOUT VACANCIES AND THE LIKE. SO WHAT I'M UNDERSTANDING IS THE 20 SOMETHING VACANCIES, 24 VACANCIES ARE ACCOUNTED FOR IN THIS BUDGET. BUT I THINK, ACCORDING TO COUNCIL MEMBER HOLLAND'S QUESTION, THAT YOU MAY ONLY FILL 10 OR 15 OR PROBABLY NOT ALL OF THEM. SO WHERE DOES THAT ADDITIONAL MONEY THAT'S BUDGETED FOR? I MEAN, IF, IF IF THAT'S THE CASE, I'M JUST CURIOUS. THIS IS JUST SORT OF A PROCESS QUESTION. SO IF WE KNOW WE'RE ONLY GOING TO FILL, LET'S SAY 15. AND SO YOU'VE BUDGETED FOR 20 SOMETHING. WHAT DO WE WHAT DO WE DO WITH THAT. THOSE ADDITIONAL DOLLARS. I MEAN, BECAUSE THEY'RE NOT GOING TO IF THEY'RE NOT GOING TO BE ALLOCATED, WHERE DO THEY, WHERE DO THEY GO?
>> WELL, THEY ARE ALLOCATED, THEY'RE ALLOCATED TO THE POLICE BUDGET. BUT IF THEY'RE NOT SPENT, THAT'S WHERE WHEN YOU SEE THE THE ROLL UP OF GENERAL FUND, THAT FIVE YEAR PROFORMA ON THE 26 YEAR END ESTIMATE, THAT'S WHY YOU'RE WHY YOU'RE SEEING PERSONNEL SERVICES. THE THE LARGE DECREASE FROM BUDGET TO ESTIMATE IS THAT'S IF WE'RE BUDGETING FOR ALL OF THEM.
HOWEVER, THEY'RE NOT ALL GOING TO BE FILLED. WE'LL SEE A DECREASE IN THE TOTAL AMOUNT IN
PERSONNEL SERVICES EXPENSE. >> SO IT'S IT'S A. >> BUT I DO WANT TO REMIND COUNCIL WE MADE A COMMITMENT, I THINK IN 2019, THERE WAS A STAFFING STUDY DONE FOR POLICE TO INCREASE THE AMOUNT OF OFFICERS, FIVE YEAR, FIVE A YEAR FOR FIVE YEARS. AND SO THAT IS SOME OF THE CHALLENGE NOW THAT WE'RE DEALING WITH, IS WE'VE INCREASED THOSE POLICE OFFICERS. HOWEVER, WE CAN'T WE'RE HAVING A HARD TIME FILLING AND RETAINING THOSE OFFICERS. SO THAT'S WHY CHIEF SOLACE IS LOOKING AT A DIFFERENT RECRUITMENT STRATEGY, INCREASING THE NUMBER OF ACADEMIES, BECAUSE WE DO NOT WANT TO HAVE 24 VACANCIES.
THAT'S THAT'S NOT IDEAL FOR US. WE WANT TO MAKE SURE THAT THOSE POSITIONS ARE FILLED. WE KNOW
THAT THEY'RE NEEDED. SO JUST WANTED TO ADD THAT. >> OKAY. YES. COUNCIL MEMBER
HOLLAND AND THEN MAYOR. >> CHIEF, DO YOU ONLY USE YOUR OWN ACADEMY?
>> YES, SIR. >> OKAY. >> YEAH. WE WANT WE WANT TO
MAINTAIN IT IN-HOUSE TO CONTROL THE QUALITY OF TRAINING. >> I JUST WANTED TO SEE IF YOU USED IF YOU CONTRACTED OUT TO COLLEGE OR SOMETHING LIKE THAT. NOT ANYMORE.
>> THAT IS AN OPTION. BUT SINCE WE HAVE SUCH GREAT ACADEMY HERE. I WANT TO MAKE SURE THAT
OFFICERS RECEIVE THE BEST TRAINING. >> YEAH I AGREE, THANK YOU.
>> MAYOR PRO TEM. >> A STATEMENT AND THEN A QUESTION. I GUESS NOW'S NOT THE RIGHT OPPORTUNITY TO EXPLAIN IT. BUT YOU AND I HAD HAD SPOKEN PRIVATELY ABOUT THE COMPLEXITY OF HIRING JUST ONE NEW POLICE OFFICER AND HOW LONG THAT PROCESS TAKES, AND I THINK IT WOULD BE GOOD FOR ALL OF US TO GET ON THAT SAME PAGE. IT WAS IT WAS MIND BLOWING TO ME. WITH THAT BEING SAID, I THINK I'M NOT FOLLOWING YOUR YOUR POINT THAT I NEED HELP UNDERSTANDING A LITTLE BIT MORE BECAUSE I HEAR YOU THAT WE NEED TO FILL THOSE VACANCIES. OF COURSE, I THINK WHERE I'M STUCK THEN IS IF WE ACTIVELY KNOW WE'RE NOT GOING TO FILL THEM, WHY ARE WE
[01:50:06]
BUDGETING FOR ALL OF THEM? >> I'M HAPPY TO TALK ABOUT THAT. IT'S PART OF OUR PART OF OUR BUDGET PROCESS. I HAVE TO BUDGET FOR THE POSITIONS I IF COUNCIL GIVES ME DIRECTION TO REDUCE THE AMOUNT THAT WE'RE BUDGETING FOR, I'M HAPPY TO DO THAT. I DON'T KNOW YOU SAID. 15 THAT YOU CAN FILL. SORRY. HOW MANY OUT OF THE ACADEMIES DO YOU THINK THAT YOU.
>> CAN FILL RIGHT NOW? CURRENTLY WE RUN AN ACADEMY ABOUT 2425 THAT INCLUDES A REGIONAL ACADEMY. SO HOW MANY HOW MANY OFFICERS WE CAN ACTUALLY PUT IN OUR ACADEMY, SINCE WE RUN, INCLUDE OTHER AGENCIES IN THAT ACADEMY, THEN WE CAN'T TAILOR THE TRAINING SPECIFICALLY TO DENTON, BY THE WAY, WE DO STUFF HERE. SO THEN WE HAVE TO. AFTER THE ACADEMY, WE HAVE TO SET BASICALLY AN IN-HOUSE MINIATURE ACADEMY FOR HOW WE PROCESS STUFF HERE. SO THAT BRINGS AN ADDITIONAL FOUR WEEKS OF TRAINING. SO IN TOTAL, THERE'S AN ESTIMATE OF ABOUT 46 WEEKS THAT IT TAKES TO TRAIN A BRAND NEW OFFICER WALKING OFF THE STREET INTO ACADEMY AND THROUGH THE PROCESS. SO IN ORDER TO DO THAT, IT'S VERY COMPLEX. SO JUST BECAUSE I FILL A VACANCY DOESN'T MEAN THAT THE OFFICER'S DEPLOYABLE RIGHT NOW. SO THERE IS A DIFFERENCE BETWEEN A VACANCY AND THEN A ROSTER OPENING. SO A ROSTER OPENING IS REALLY WHAT IS ACCOUNTS FOR VACANCY. AND THE OFFICER THAT'S STILL IN TRAINING AT SOME STAGE. SO SOME OFFICERS MAKE IT OUT OF TRAINING A LITTLE FASTER THAN OTHERS BASED ON THEIR EXPERIENCE AND THEIR, THEIR APPLICATION OF THE LAW AND THEIR UNDERSTANDING OF THE LAW.
AND SOME SOME OF THEM DON'T. SOME OF THEM HAVE THE EXTENSIVE, EXTENSIVE, MORE TRAINING TO GET THEM THROUGH. AND THEN SOME OF THEM DON'T MAKE IT TO TRAINING AT ALL. BECAUSE LIKE I SAID, WE'RE NOT GOING TO LOWER OUR STANDARDS IN ORDER TO PROVIDE THE EXCELLENT SERVICE OUR
COMMUNITY EXPECTS. >> OKAY. >> YEAH. YES. COUNCILMEMBER
RUMOHR. >> I THINK I DO LIKE THE IDEA OF GOING AHEAD. AND EVERY YEAR BUDGETING AS THOUGH WE'RE GOING TO FILL ALL THOSE VACANCIES. BUT I WANT TO COME BACK TO THE MAYOR'S QUESTION. SO IF WE KNOW THAT THE VACANCIES AREN'T GOING TO BE FILLED AND THERE'S GOING TO BE THAT SORT OF SAVINGS, DOES THAT STAY IN THE POLICE BUDGET? DOES IT GO BACK TO GENERAL FUND? DOES IT END UP SUPPLEMENTING OVER COST OVERRUNS ELSEWHERE? DOES IT GO INTO THE FUND BALANCE? WHERE DOES THAT GO IF WE DON'T FILL SOME OF THOSE VACANCIES?
>> SO IN IN PREVIOUS YEARS, WHAT'S HAPPENED IS OUR OVERTIME HAS BEEN HIGHER THAN WHAT WE BUDGETED FOR. AND A LOT OF THAT IS SUPPLEMENTING THE OVERTIME. BECAUSE IF YOU DON'T HAVE THE OFFICERS, THE EXISTING OFFICERS ARE WORKING OVERTIME. AND SO THAT HAS HISTORICALLY BEEN THE PRACTICE. AS AMY SAID, WE'RE TRYING TO RIGHT SIZE OVERTIME. I'M I'M HOPEFUL THAT WE'VE GOT IT MORE TUNED IN TO WHAT WE NEED. BUT AT THE END OF THE DAY, I WANT TO MAKE SURE THAT THE POLICE DEPARTMENT HAS EVERYTHING THAT THEY NEED TO BE SUCCESSFUL. AND I DON'T WANT US TO GET IN A HABIT OF NOT BUDGETING FOR THE POSITIONS. AND I WANT THE CHIEF TO HAVE THE FLEXIBILITY TO TO FILL THOSE POSITIONS WHEN HE NEEDS THEM VERSUS THE BUDGET NOT
BEING THERE AND NOT BEING AVAILABLE FOR HIM TO FILL. >> RIGHT. LAST THING I WANT TO DO IS RUN INTO A SITUATION WHERE I HAVE A PRIME IDEAL CANDIDATE THAT I CAN HIRE, BUT I DON'T HAVE THE BUDGET SET UP FOR, FOR THAT HIRE. SO, AND TO CASSY'S POINT, IT IS, YOU KNOW, AS A POLICE DEPARTMENT, PUBLIC SAFETY, WE GET TASKED WITH A MULTITUDE OF THINGS OF UNEXPECTED EVENTS THAT POP UP. FOR INSTANCE, THERE'S, YOU KNOW, WHEN YOU HAVE PROTESTS ON THE SQUARE, WE HAVE TO PROVIDE SECURITY. THOSE AREN'T ALWAYS IN ADVANCE. NOTICE THOSE ARE, HEY, THERE'S SOMETHING GOING ON. HAVE TO DEPLOY OFFICERS THERE SO THAT OVERTIME HAS TO COME FROM SOMEWHERE. SO THERE'S A LOT OF UNEXPECTED OVERTIME THAT'S REQUIRED FOR THE POLICE DEPARTMENT. AND IT'S VERY VOLATILE BASED ON WHAT SOCIETY IS PRIORITIZING OR WHAT THEY'RE OBJECTING TO AND WHAT WE'RE DEALING WITH IN THE CITY. SO THAT'S THAT'S THE CAVEAT TO THIS IS YOU TRY TO YOU TRY TO, ON THE SIDE OF CAUTION, KIND OF OVER BUDGET A LITTLE BIT SO YOU CAN PROVIDE SOME CUSHION BECAUSE LAST THING WE WANT TO DO IS PUT THE CITY IN A PREDICAMENT TO WHERE WE'RE EXCEEDING OUR BUDGET BASED ON THE REQUIREMENTS OF SOCIETY.
>> OKAY. YES. COUNCIL MEMBER PERRY. >> THANK YOU. SO IN THE SPIRIT OF THIS QUESTION, CONTINUING ON, LIKE WITH THE 26 ADOPTED, $5.17 MILLION OF TRANSFERS OUT, CAN
YOU EXPLAIN IS THAT INTERDEPARTMENTAL TRANSFERS? >> SURE.
>> SO YES. >> SO OUR INNER TRANSFERS ARE HAS TO DO WITH OUR TECHNOLOGY.
SO AS CASSEY SAID, WE ARE LEVERAGING TECHNOLOGY. WE HAVE A HUGE TECHNOLOGY CONTRACT THAT HAS TO DO WITH THAT. SO THIS YEAR WHAT WE DID, WE REMOVED IT FROM OUR OPERATING BUDGET AND JUST LEFT IT IN TECHNOLOGY BUDGET WHERE IT'S ACTUALLY GOING TO BE TRANSFERRED EVENTUALLY. SO JUST TO STREAMLINE STUFF, WE WENT AHEAD AND MOVED THERE AHEAD OF THE
>> THANK YOU. >> AND THIS IS MORE OF A PROCESS QUESTION BECAUSE I'M SURE IT'S CHALLENGING. WE'RE IN THE MIDDLE OF THE BUDGET PROCESS, BUT YOU'RE ALSO IN THE MIDDLE OF MEETING CONFER. SO IF DEPENDING ON HOW THOSE DISCUSSIONS GO, THEN IF THERE'S CHANGES, THEN THAT HAPPENS THROUGH EITHER IF WE HAVEN'T ADOPTED IT, JUST MAKE IT OR IF WE HAVE, THEN MAYBE SOME TYPE OF BUDGET AMENDMENT OR SOMETHING LIKE THAT. OKAY. JUST WANT TO UNDERSTAND THE PROCESS OF THAT BECAUSE YEAH. ANY OTHER QUESTIONS ON THIS? THANK YOU
[01:55:09]
CHIEF. >> THANK YOU. >> YOU BET.
>> ALL RIGHT. SO NEXT WE'RE GOING TO MOVE ON TO ECONOMIC DEVELOPMENT, WHICH PLAYS A MAJOR ROLE IN ATTRACTING NEW BUSINESSES, SUPPORTING EXISTING ONES, AND THEN STRENGTHENING DENTON'S IDENTITY. SO THEIR FOCUS AND PRIORITIES IN 2027 INCLUDE CREATING PROGRAMING THAT SUPPORTS SMALL BUSINESSES ACROSS DENTON, BUILDING DENTON'S TECH ECOSYSTEM THROUGH STARTUP SUPPORT, AND THEN MAINTAINING CAPACITY TO MANAGE BUSINESS RECRUITMENT AND WORKFORCE INITIATIVES. ECONOMIC DEVELOPMENT IS A SMALLER DEPARTMENT WITH A 6.7 5FT. THE BUDGET INCLUDES INCLUDES INCREASES TO PERSONNEL DUE TO A POSITION BEING REALLOCATED TO THE DEPARTMENT DURING THE CURRENT YEAR. THERE'S ALSO AN INCREASE IN OPERATIONS, PRIMARILY RELATED TO INCENTIVES. ONE OF THE HIGHLIGHTS WE'VE NOTED HERE IS THAT WE HAVE INCLUDED $1 MILLION. IT IS CURRENTLY PROGRAMED INTO NON-DEPARTMENTAL. THAT'S A PLACEHOLDER FOR RIGHT NOW. LATER IN TODAY'S PRESENTATION, WE'LL TALK ABOUT HOW WE CAN UTILIZE THAT MILLION DOLLARS, GET DIRECTION FROM COUNCIL ON HOW YOU WOULD LIKE TO GO FORWARD WITH THAT PROPOSED INVESTMENT IN ECONOMIC DEVELOPMENT. THIS IS THE LAST SLIDE FOR THE GENERAL FUND. WE HAVE COMBINED IT TO ADMINISTRATIVE SERVICES.
THERE'S A FEW OTHERS THROWN IN THE MIX, BUT ADMINISTRATIVE SERVICES ARE PREDOMINANTLY THOSE INTERNAL FACING DEPARTMENTS THAT REALLY KEEP THE ORGANIZATION RUNNING DAY TO DAY. ALL TOGETHER. THIS INCLUDES 128 FTES IN THE GENERAL FUND. THE OFFICE OF STRATEGY, BUDGET AND PERFORMANCE, WHICH IS MY TEAM, WAS CREATED DURING THE CURRENT.
DURING THE CURRENT YEAR, WE WILL HAVE A BUDGET ESTABLISHED IN 2027. I KNOW WE HAD A QUESTION ABOUT THE REDUCTION IN FINANCE. THE MAJORITY OF THE STAFF REALLOCATED TO THE OFFICE OF STRATEGY, BUDGET AND PERFORMANCE SBP, BECAUSE THAT'S A REALLY LONG NAME, DID COME FROM FINANCE. IN CREATING THAT TEAM. OVERALL, THOUGH, THERE IS NO CHANGE IN OVERALL FTES AS A RESULT. NEXT UP, AND I KNOW THERE ARE PROBABLY A LOT OF QUESTIONS AROUND NON-DEPARTMENTAL. THERE WAS A CORRECTION TO THIS SLIDE I WHEN I WAS LOOKING AT THE DETAILS, I ALSO SAW THAT WE NEEDED TO MAKE A CORRECTION THERE. THERE'S STILL A SIGNIFICANT VARIANCE FROM THE 2027 OR 2026 TO THE 2027 NUMBER. THIS DOES REFLECT THAT TRANSFER OF FUNDS TO TECHNOLOGY SERVICES BEING FULLY ALLOCATED TO NON-DEPARTMENTAL. THAT IS APPROXIMATELY $15 MILLION THAT WERE PREVIOUSLY ACROSS ALL DEPARTMENTS WITHIN THE GENERAL FUND. WE ALSO HAVE A PLACEHOLDER FOR SOME OF THOSE HIGH LEVEL BUDGET DECISIONS WE'RE GOING TO WALK YOU THROUGH LATER IN TODAY'S PRESENTATION. THAT INCLUDES $1 MILLION FOR ECONOMIC DEVELOPMENT. IT ALSO INCLUDES $1.4 MILLION TO CASH FUND, EQUIPMENT REPLACEMENT AND CAPITAL MAINTENANCE. AND THEN, YOU KNOW, YEAH, DID SOME HOMEWORK. IF Y'ALL HAVE ANY QUESTIONS ON THOSE TRANSFERS
OUT. BUT THAT IS WHAT IS INCLUDED IN NON-DEPARTMENTAL. >> OKAY. YES. COUNCIL MEMBER
RUMOHR. >> I'M STARTING TO PIECE TOGETHER THE TRANSFERS AND THE TECHNOLOGY SERVICES AND HOW THAT'S IN EVERY DEPARTMENT BUDGET THAT WE'VE SEEN. CAN SOMEONE EXPLAIN TO ME BROADLY THE PROCESS THAT THIS MONEY IS TRAVELING THROUGH? LIKE, WHAT WAS IT DOING BEFORE? IT SOUNDS LIKE IT WAS GOING TO THE DEPARTMENTS AND THEN TRAVELING BACK OUT TO TECHNOLOGY. SO NOW IS IT JUST GOING STRAIGHT INTO HERE AND WHERE'S THAT MONEY
COMING FROM? LIKE JUST THE PATHWAY OF. >> GOING BACK OUT TO TECH SERVICES ONLY NOT GOING THROUGH THE DEPARTMENT FIRST, IT'S GOING THROUGH NON-DEPARTMENTAL AND THEN TO TECH SERVICES AND THE OTHER FUNDS, THE INTERNAL SERVICE FUNDS.
>> OKAY, SO THIS IS GENERAL FUND PIE CHART MONEY GOING INTO A BIG FUND AND THEN GETTING SENT TO ADMINISTRATIVE SERVICES OR SORRY, NO. NON-DEPARTMENTAL NON-DEPARTMENTAL. OH, IT'S JUST
NOT BEING ALLOCATED. >> IT'S NOT BEING ALLOCATED TO THE INDIVIDUAL DEPARTMENTS.
IT'S COMING FROM NON-DEPARTMENTAL INTO THE OTHER FUNDS. SO BASICALLY TECHNOLOGY
SERVICES. >> OKAY. SO WE'VE BASICALLY ELIMINATED A STEP RIGHT FOR EACH DEPARTMENT. OKAY. I THINK I'VE GOT IT. THANK YOU. YEAH. QUESTIONS.
>> YES. COUNCILMEMBER. CHESTER. >> BACK ON THE ECONOMIC DEVELOPMENT SLIDE. THE INCREASE
IN PERSONNEL SERVICES. ARE WE ANTICIPATING ADDING AN EMPLOYEE. >> WE ADDED ONE DURING THE
[02:00:05]
CURRENT YEAR. I BELIEVE THAT EMPLOYEE WAS MOVED OVER FROM EITHER FROM. I'D HAVE TO LOOK AT CITY MANAGER'S OFFICE. IT WAS MOVED FROM CITY MANAGER'S OFFICE OVER TO ECONOMICDEVELOPMENT TO PROVIDE THEM SOME ADDITIONAL SUPPORT. >> SO THAT EXPLAINS THE
INCREASE FROM THE 26 TO 27. THANK YOU. >> IT WASN'T A NEW POSITION. WE REALLOCATED AN EXISTING POSITION OVER TO ECONOMIC DEVELOPMENT. I JUST WANT TO BE
CLEAR. THANK YOU. >> OKAY. >> ALL RIGHT. SO NOW WE'RE TO THE GENERAL FUND PERFORMA. YOU MIGHT FIND AN EXTRA LARGE HANDOUT WITHIN YOUR PRESENTATION. MIGHT MAKE THIS ONE A LITTLE BIT EASIER FOR YOU TO LOOK AT. SO WE'VE NOW PROVIDED ON AN 11 BY 17. BUT IT SHOWS A MULTIPLE YEARS OF THE GENERAL FUND AND HELPS US UNDERSTAND NOT JUST THIS YEAR'S BUDGET, BUT HOW OUR DECISIONS TODAY PLAY OUT AND IMPACT THE NEXT SEVERAL YEARS. THE PERFORMANCE STARTS WITH THE BEGINNING FUND BALANCE AND THEN WALKS THROUGH ALL MAJOR REVENUE CATEGORIES, FOLLOWED BY ALL OF THE EXPENDITURE CATEGORIES. THE 2027 BUDGET IS BALANCED WITH REVENUES AND EXPENDITURES OF JUST OVER $233 MILLION. THE RESERVE DOES MEET OUR 20% TARGET AS BUDGETED, AND THEN OVER THE NEXT FEW YEARS, WE ARE PROJECTING THE BALANCE TO GROW SLOWLY BUT STEADILY, REACHING ABOUT 23% BY 2031. THIS DOES SHOW A HEALTHY TRAJECTORY AND SHOWS THAT THE STEPS THAT WE HAVE TAKEN OVER THE LAST FEW YEARS ARE HELPING TO STABILIZE THE FUND IN THE LONG TERM, BUT WE DO NEED TO, AGAIN, BE MINDFUL GOING FORWARD OF HOW BPP WILL AFFECT OUR REVENUES AND MAKE SURE THAT WE ARE MODELING THAT IN, PARTICULARLY AS WE WORK THROUGH WHAT DEPRECIATION OF THOSE DOLLARS
LOOKS LIKE. >> JUST A QUESTION. OH, I'M SORRY, DID YOU GO AHEAD,
COUNCILMEMBER. >> HOW ARE REMODELING THE BPP IN THE FUTURE PROJECTIONS
CURRENTLY? >> SO RIGHT NOW WE ARE USING A PROJECTION OF 3% IN THERE, JUST OVERALL GROWTH OF 3%, BECAUSE WE ARE GOING TO SEE GROWTH CONTINUE IN IN THE CITY IN TERMS OF NEW COMMERCIAL AND NEW RESIDENTIAL DEVELOPMENT. BUT AGAIN, THAT IS SOMETHING THAT WE'LL NEED TO TAKE A CLOSER LOOK AT AND SEE HOW WE NEED TO ADJUST THAT MODELING. BUT AT
THIS POINT, IT IS AT 3%. >> DO WE HAVE A GOOD IDEA ON WHAT TO EXPECT ON THE DEPRECIATION? ARE WE GOING TO HAVE TO JUST LEARN THAT AS WE GO?
>> BASICALLY NOT YET. WE'RE GOING TO WORK WITH THE APPRAISAL DISTRICT TO SEE IF THEY CAN HELP US WITH MODELING WHAT THAT DEPRECIATION WILL LOOK LIKE OVER THE NEXT SEVERAL
YEARS, BUT WE DON'T HAVE THAT AT THIS POINT. >> OKAY. SO ONCE WE GET THAT, THIS WILL PROBABLY LOOK POTENTIALLY VERY DIFFERENT. YES, DEPENDING ON. OKAY. THANK YOU.
>> SORT OF TO ADD TO THAT, WHEN I WAS DOING MY HOMEWORK FOR THE BUDGET, I LOOKED UP WHAT SOME BUSINESS PERSONAL PROPERTY WAS FOR ONE OF THE DATA CENTERS. THAT WAS A, ANOTHER TYPE OF MANUFACTURER OR COMPUTING IS CRYPTO. AND THEIR BPP WENT DOWN SUBSTANTIALLY FROM YEAR TO YEAR.
SO THAT'S GOING TO BE SOMETHING. BUT ALSO THEY THEY RENEW IT. YOU KNOW, THEY PULL THOSE THINGS OUT AND THEY PUT NEW ONES IN. SO IT'S REALLY THIS IS GOING TO BE KIND OF A LEARN AS WE GO AND REALLY TRY TO DO THE BEST THAT WE CAN. AND THAT TOWARDS THAT QUESTION. I APPRECIATE THAT QUESTION. BECAUSE IF WE'RE IF WE'RE PROJECTING A 3% INCREASE, JUST AS AN ASSUMPTION, WELL, THE BPP FOR THAT PARTICULAR ENTITY IS ABOUT A 10TH OF OUR CERTIFIED VALUE. I MEAN, IT'S I MEAN, IT'S CLOSE TO 3 BILLION. AND THAT MEANS OUR CERTIFIED WITH THAT IN THERE IS 2.6. SO IT'S MORE THAN 10% OF OUR VALUATION. SO IF IT EVEN GOES DOWN. 10% OR 15%, THAT REALLY CAN CREATE A HUGE GAP THAT COULD ABSORB ALL OF THAT 3% INCREASE. SO I JUST REALLY, YOU KNOW, MOVING FORWARD, JUST AS WE REALLY TRY TO CRUNCH THAT OUT. AND THERE WAS ANOTHER, OH, YES, MY QUESTION WAS ON THE, THE LAST SLIDE, THE ADMINISTRATIVE SERVICES AND OTHERS WHERE WE HAD THE FI PROPOSED AT 52 MILLION. WHERE IS IT MUST BE SPLIT OUT AMONGST A COUPLE OF FUNDS HERE IN THE IN THE EXPENSES, I MEAN CATEGORIES AND EXPENSES BECAUSE I SEE INTER FUND TRANSFERS. THAT TOTALS 24 MILLION. IS IT UNDER OPERATIONS THAT SOME OF THAT. I MEAN WHERE IS THAT COMING IN TO THE EXPENSE LINES.
[02:05:04]
>> ALL OF THOSE ALL OF THOSE DEPARTMENTS THAT YOU'RE SEEING IN ADMINISTRATIVE SERVICES ARE INCLUDED IN THE GENERAL FUND SUMMARY. THEY'RE JUST SPLIT OUT BETWEEN THE TOTAL EXPENDITURES.
SO EACH DEPARTMENT IS GOING TO HAVE PERSONNEL, MATERIALS AND SUPPLIES, INSURANCE OPERATIONS.
>> EACH ONE OF THESE. >> EACH ONE OF THESE DEPARTMENTS WILL HAVE THOSE CATEGORIES. OKAY. AND THEN ALL, I BELIEVE THE INTERFUND TRANSFER TRANSFERS ARE INCLUDED
IN THE NON-DEPARTMENTAL. >> THAT IS CORRECT. PARTICULARLY FOR TECH.
>> YES. NON-DEPARTMENTAL. WHICH IS WHICH UNDER WHICH CATEGORY. >> IS THE NON-DEPARTMENTAL BUDGET OF $32 MILLION DOES INCLUDE WHAT YOU'RE SEEING IN THE $24 MILLION ON THE GENERAL
FUND PERFORMA. OKAY. OF INTERFUND TRANSFERS. >> OKAY. ALL RIGHT. OKAY. THANK
YOU. >> OKAY. >> ALL RIGHT. NEXT WE'RE GOING TO MOVE TO THE GENERAL FUND, CASH FUNDED SPONSORSHIPS AND IN-KIND. THIS SLIDE ■SHOWS RECOMMENDATIONS FROM THE COMMUNITY PARTNERSHIP COMMITTEE RELATED TO THOSE SPONSORSHIPS, IN-KIND SUPPORT PROVIDED BY THE GENERAL FUND. WE CONTINUE THOSE RECOMMENDATIONS ON THIS SLIDE.
OVERALL, THE COMMITTEE IS RECOMMENDING $350,000 COMBINED SUPPORT IN 2027. THAT INCLUDES 15,000 IN CONTINGENCY. SO THAT THAT GIVES THAT COMMITTEE FLEXIBILITY THROUGHOUT THE YEAR TO RESPOND TO ANY NEW OPPORTUNITIES OR IF ANY ADDITIONAL NEEDS ARISE.
>> YES. COUNCIL MEMBER PERRY AND MAYOR PRO TEM. >> THANK YOU. AND THIS WILL BE CORRECT ME IF I'M WRONG, AN ITEM THAT COMES BEFORE THE WHOLE COUNCIL, RIGHT IN A SEPARATE PRESENTATION TO GO OVER HOW FUNDS OR IS THAT A COMPLETELY SEPARATE LINE ITEM?
THIS IS GOING TO GET SEPARATED. >> NO, THIS IS THIS IS THIS IS IT. WE'RE WE DIDN'T INCLUDE A SEPARATE PRESENTATION, BUT IF YOU WANT TO DISCUSS, THIS WOULD BE THE TIME TO DO IT BASED ON.
OKAY, WE'LL TAKE, WE'LL TAKE ANY FEEDBACK FROM THE BUDGET WORKSHOP AND WE WILL ROLL THAT
INTO BUDGET ADOPTION IN SEPTEMBER. >> OKAY. THEN I'M WONDERING THEN HOT FUNDS IS NOT LISTED HERE IN TERMS OF THE RECOMMENDATIONS FROM CPC THAT WERE JUST MADE. I'M WONDERING WHEN THAT'S GOING TO COME BEFORE COUNCIL AS A WHOLE.
>> YEAH, I THINK THAT'S WHAT THIS IS, IS. IF I'M. >> GOOD MORNING. THIS IS THE GENERAL FUND PORTION ONLY. SO THIS IS THE CASH, THE $150,000 IN CASH SPONSORSHIP THAT WE HAVE IN THE GENERAL FUND AND THEN THE IN-KIND. SO YOU'RE CORRECT. THERE WILL BE A CONVERSATION LATER IN THE PRESENTATION WHEN WE GET TO SPECIAL REVENUE FUNDS THAT HAS THE HOT. BUT WE WANTED TO PULL OUT BECAUSE THIS IS WHERE VARIOUS ORGANIZATIONS RECEIVE CASH FUNDING. SO GIVING THE COUNCIL THE OPPORTUNITY TO LOOK AT THE COMMUNITY PARTNERSHIP RECOMMENDATION ON CASH AND IN-KIND, WHICH DIRECTLY AFFECTS THE GENERAL FUND.
>> I JUST WANTED TO MAKE SURE THAT WE WERE GOING TO HAVE BOTH. >> THANK YOU. OKAY. THANK YOU.
YEAH. I APPRECIATE YOU BRINGING THAT UP. SO THEN IN THAT FUTURE PRESENTATION TODAY, IT'S GOING TO SHOW HOW MUCH HOT FUNDS IS IN THERE, HOW MUCH WE RAISED, AND THEN ALL THE DIFFERENT
ALLOCATIONS FROM THE CPC SUBCOMMITTEE RECOMMENDATIONS. >> IT'S LISTED ON SLIDE 64 AND
65. >> OKAY. >> YES, BUT THIS IS THE OPPORTUNITY, IF YOU'RE WANTING TO REALLOCATE, ASK QUESTIONS AS FAR AS WHAT'S RECOMMENDED IN CASH, DOLLARS OR IN KIND TO SUPPORT THE ORGANIZATIONS THAT REQUESTED FUNDING.
>> OKAY. ALL RIGHT. THANK YOU. ANY QUESTIONS ON THAT? ON THE CASH PORTION? YES. COUNCIL
MEMBER. JESTER. >> SO IF SOMEONE COULD SPEAK TO SPECIFICALLY. SO I SEE THAT THE FOR EXAMPLE, THE DENTON PARKS FOUNDATION, JUNETEENTH SCORED A SMALL AMOUNT HIGHER THAN THE DENTON BLACK CHAMBER OF COMMERCE BLUES FESTIVAL. THEY WERE AWARDED THE SAME AMOUNT LAST YEAR. THE BLUES FESTIVAL ASKED FOR MORE MONEY THAN JUNETEENTH. THE PARKS FOUNDATION, JUNETEENTH, AND THEN THE IN-KIND AND RECOMMENDED CASH SPONSORSHIP.
WE'VE GOT THE DENTON PARKS FOUNDATION JUNETEENTH RECEIVING 22,500, WERE IN THE DENTON BLACK CHAMBER OF COMMERCE BLUES FESTIVAL RECEIVED 15,000. I WAS JUST WONDERING IF SOMEONE COULD.
THAT JUST SEEMS. I WAS CURIOUS AS TO THAT DECISION. IF SOMEONE COULD SPEAK TO IT.
>> WE CAN. I CAN GIVE A QUICK OVERVIEW. SO APPLICATIONS ARE TURNED IN AND THEY'RE PROVIDED A SCORING RUBRIC BASED ON THEIR APPLICATION. WHAT'S THEIR ECONOMIC IMPACT? HOW ARE THEY MARKETING THE EVENT. SEVERAL CATEGORIES. THEN THEIR APPLICATION IS EVALUATED INDEPENDENTLY BY A TEAM OF EVALUATIONS AND THAT LENDED TO THE SCORE. AND THEN THERE WAS A
[02:10:05]
FUNDING FORMULA ON HOW THOSE DOLLARS WERE ALLOCATED. SO THE DOLLARS WERE ALLOCATED BASED ONHOW THEY SCORED IN THEIR APPLICATIONS. >> IT JUST SEEMS WITH THE FORECAST VERSUS THE GRANT DOESN'T SEEM TO CORRESPOND WITH THE SCORING IS WHAT I'M SAYING.
>> MATT'S GOING TO PULL UP WHAT OUR FUNDING FORMULA WAS FOR THE CASH SPONSORSHIP.
>> THANK YOU. >> YEAH. >> SO JUST TO PROVIDE KIND OF AN OVERVIEW ON ON THE SCORING AND THE SCORING INTERPRETATION. SO ANY ORGANIZATION THAT SCORED BETWEEN 90 AND 100 POINTS WAS FUNDED AT 100%, 75 TO 89 POINTS, 70%, 60 TO 74 POINTS AT 50%, AND ANY APPLICANT SCORING BELOW 60 POINTS WAS NOT RECOMMENDED FOR FUNDING. THE FUNDING PERCENTAGES WAS BASED ON THEIR REQUEST, NOT WHAT THEY HAD RECEIVED IN THE PRIOR YEAR. SO EVEN THOUGH THESE TWO ORGANIZATIONS DID SCORE WITHIN THE SAME SCORING LEVEL AT 50% FUNDING, THE REASON THAT THE THE SECOND ORGANIZATION WAS RECOMMENDED FOR MORE IS BECAUSE THEY HAD REQUESTED MORE IN THE APPLICATION, AND THAT'S WHAT THE SCORING WAS BASED ON. SO IN THE CURRENT YEAR, THEY HAD REQUESTED $10,000 AND WERE FUNDED AT 50%. AND SO THE RECOMMENDATION WAS AT THAT 5000. THE OTHER ORGANIZATION DID NOT REQUEST 10,000. THEY REQUESTED LESS AND WERE FUNDED AT 50%. SO THAT'S JUST HOW THE RECOMMENDATION NUMBERS WERE,
WERE BASED ON WHAT THEY HAD APPLIED FOR. >> AND WHICH WHICH DEPARTMENT
SCORES THE APPLICATIONS. >> SO THIS PROCESS IS LED BY OUR GRANTS DIVISION. HOWEVER, A NUMBER OF STAFF MEMBERS FROM A VARIETY OF DEPARTMENTS WERE SELECTED AS EVALUATORS. AND SO ONCE THE APPLICATIONS WERE RECEIVED BY THE CITY, THESE EVALUATORS REVIEWED THE APPLICATIONS. THERE WAS TWO EVALUATORS FOR EACH APPLICATION, BOTH FOR HOT AND FOR SPONSORSHIP, WHO INDEPENDENTLY SCORED THEM BASED ON THE RUBRIC THAT WAS DEVELOPED BY THE COMMUNITY PARTNERSHIP COMMITTEE. AND THEN WHAT IS REFLECTED HERE AS A SCORE IS THE AVERAGE OF
THOSE TWO EVALUATORS SCORES. >> WELL, I'M I'M SURE I'M NOT THE ONLY ONE THAT WAS REACHED OUT TO BY MULTIPLE ORGANIZATIONS. FEELING UNHAPPY WITH THE CURRENT SETUP, AS WELL AS THE SCORING, WHICH I MEAN, I WISH WE COULD JUST FUND EVERYONE WHAT WHAT WE NEED. I KNOW WE WE CAN'T, BUT I THINK THAT IT WOULD BE HELPFUL IF WE COULD MAYBE RESEND THAT OUT AND THEN MAYBE AT SOME POINT HAVE A SHORT WORK SESSION, KIND OF WALKING THROUGH IT SO THAT THOSE OF US THAT ARE NOT ON THE COMMITTEE THAT CAME UP WITH THE SCORING RUBRICS OR APPROVED, IT CAN BETTER EXPLAIN IT TO OUR CONSTITUENTS AND OUR. AWESOME ORGANIZATIONS AS WE TRY TO EXPLAIN HOW THESE DECISIONS ARE MADE. BECAUSE WHEN WE'RE NOT IN THAT, IN THOSE MEETINGS AREN'T RECORDED AND ABLE TO BE WATCHED, I THINK MORE INFORMATION THE BETTER, ESPECIALLY WHEN WE'RE HAVING TO MAKE TOUGH DECISIONS AS FAR AS WHO GETS WHAT. AND, YOU KNOW, THERE'S LOTS OF. REAL GENUINE. DISAPPOINTMENT. AND WE DON'T WANT OUR THESE ORGANIZATIONS TO FEEL THAT WE'RE BEING UNFAIR. SO I THINK AT SOME POINT THAT WOULD BE MAYBE GOOD TO HAVE A WHOLE COUNCIL DISCUSSION JUST SO THAT WE ALL CAN UNDERSTAND IT, GIVE INPUT FOR FUTURE YEARS, AND
EXPLAIN IT TO PEOPLE. SORRY. GO AHEAD. >> COUNCIL MEMBER HOLLAND.
>> I WOULD LIKE EVERYONE TO BE AWARE OF THE BROCHURE PUT OUT BY THE TEXAS COMPTROLLER'S
OFFICE, THE HOTEL, THE HOT FUND TWO STEP. SORRY. >> I'M SORRY. THIS ONE SPECIFICALLY IS NOT HOT FUNDS JUST TO JUST TO MAKE SURE THAT WE'RE CLEAR. AND I DO AGREE
WITH YOU. I'M SORRY. I APOLOGIZE FOR INTERRUPTING. >> I THINK THAT'S A VALUABLE A VALUABLE TOOL THAT EXPLAINS THAT EXPLAINS THIS CONCISELY. AND ANYWAY, EVERYBODY WANTS
MORE MONEY, I GET THAT. THANK YOU. MAYOR. >> MAYOR PRO TEM.
>> I DID JUST WANT TO VOICE A CONCERN ABOUT THE ONE SPECIFIC. THING ON HERE, WHICH WAS THE
[02:15:04]
4TH OF JULY FIREWORKS, BECAUSE IT LOOKS LIKE FUNDING DROPPED DOWN TO 15,000 THIS YEAR. AND I KNOW THAT THERE HAS BEEN. I MEAN, IT WAS IN THE PAPER THIS YEAR, I THINK, AND MAYBE IT WASN'T, BUT I KNOW THAT THEY HAD TO RAISE ADDITIONAL MONEY. THIS IS ONE OF THE, I WOULD SAY, MOST IMPORTANT THINGS THAT HAPPENS IN THE COMMUNITY EACH YEAR THAT PEOPLE ATTEND. AND I DON'T WANT TO SET THEM UP TO FAIL. AND SO I WOULD LIKE TO TALK ABOUT, AND I DON'T KNOW IF NOW'S THE RIGHT TIME MAKING SURE THAT THEY GET MORE ASSISTANCE THIS YEAR. I DON'TLIKE THAT. IT'S DROPPED DOWN TO 15,000. >> OKAY. YES. COUNCILMEMBER
RUMOHR. >> I JUST WANTED TO SECOND WHAT COUNCIL MEMBER JESTER SAID ABOUT HAVING A BIT OF A DEEP DIVE FOR THOSE OF US WHO AREN'T ON THE COMMITTEE, BECAUSE I'VE ALSO HAD TROUBLE ADDRESSING FOLKS CONCERNS BECAUSE I DON'T SIT IN THOSE. SO I'M NOT AS FAMILIAR WITH THE MATRIX, AND ALSO SOMETHING I'M KIND OF CURIOUS ABOUT. LOOKING FORWARD FOR THIS COMMITTEE. THE COMMUNITY COMMUNITY PARTNERSHIP COMMITTEE IS IS TAKING A LOOK AT THE MATRIX, THE SCORING MATRIX, AND SEEING IF THERE'S ANY ADJUSTMENTS WE CAN MAKE. TO BE HONEST WITH YOU, IF I WAS ONE OF THESE ORGANIZATIONS, I WOULD BE REALLY TEMPTED TO ASK FOR WAY MORE THAN I ACTUALLY NEED SO THAT I CAN GET MY ACTUAL TARGET NUMBER. AND SO FIGURING OUT A WAY TO CHANGE THAT MATRIX WHERE PEOPLE ARE GETTING WHAT THEY ACTUALLY NEED, AND THEY'RE NOT LIKE PROVIDING STRANGE NUMBERS TO TRY TO GET WHAT THEY ACTUALLY NEED, BASICALLY. BECAUSE IF THEY, IF I KNOW I'M GOING TO GET 50% EVERY TIME I'M GOING TO DOUBLE
MY ASKING PRICE, BASICALLY. THANK YOU. >> YES. COUNCILMEMBER FERRY.
>> I'VE ALSO RECEIVED A LOT OF EMAILS AS WELL. COUNCIL MEMBER JESTER. I ALSO THINK IT'S WORTH NOTING WHEN WE TALK ABOUT CERTAIN AGENCIES THAT ARE CONSISTENT PARTNERS IN A LOT OF THESE EVENTS, BUT ARE NOT HAVING TO MAYBE FINANCIALLY CONTRIBUTE ON THE FRONT END TO THOSE EVENTS, BUT LIKE WHAT THAT REQUIRES ON THEIR BACK END FOR STAFFING TO HAVE THEIR BUILDING OPEN. YOU KNOW, THERE ARE NUMEROUS EMAILS THAT I'VE RECEIVED FROM AGENCIES THAT ARE LIKE, YOU KNOW, WE SUPPORT ALL THESE EVENTS, BUT WE DON'T GET FUNDING FOR IT. THEY GET THE FUNDING FOR IT. SO IT'S STILL A COST TO US. SO THEN AGAIN, TO YOUR POINT, WHY NOT ASK FOR THIS AMOUNT TO HIT THE MATRIX PERCENTAGE YOU NEED? SO I THINK THAT THERE IS A CONVERSATION ABOUT EQUITY THAT CAN BE HAD IN THE APPLICATION PROCESS TO MAKE THIS FEEL MORE LIKE A SUPPORTIVE SYSTEM. YEAH, I HEAR THAT. AND I ALSO ECHO THE KIWANIS WAS ONE THAT WE TALKED ABOUT IN CPC. I THINK ONE OF THE MAIN ISSUES IS I DON'T REMEMBER, AND I'M CHECKING BECAUSE I'M LOOKING AT MY 11 BY 17 SPREADSHEET. KIWANIS, I DON'T BELIEVE REQUESTED ANY IN-KIND THE YEAR PRIOR. THEREFORE, IT DIDN'T COME FORWARD TO HAVE ANY ADDITIONAL.
AND WE RECOMMENDED 10,000 GOING TO IN-KIND. BUT I'M WONDERING FOR THIS EVENT, SPECIFICALLY 4TH OF JULY FIREWORKS, WHAT AMOUNT OF IN-KIND WOULD. WHAT IS THE THRESHOLD WHERE IT WOULD BE THAT WE ACTUALLY BE GIVING THEM TOO MUCH IN-KIND MONEY? HOW MUCH WOULD THEY NEED?
>> I DON'T KNOW EXACTLY HOW MUCH THEY WILL NEED, BUT YOU'RE CORRECT. ON THEIR APPLICATION FOR 27, THEY DIDN'T INDICATE THAT THEY WOULD NEED IN-KIND. WE DON'T KNOW WHETHER THAT'S ACCURATE OR NOT. BUT YOU COUNCIL DOES STILL HAVE THE CONTINGENCY DOLLAR AMOUNTS IN BOTH THOSE CATEGORIES IN-KIND AND CASH THAT CAN BE ALLOCATED TO THE EVENTS. BUT WE DO
BELIEVE THEY'LL NEED IN-KIND OKAY. >> BECAUSE THEN WE'RE ALSO BECAUSE WE RECOMMENDED ADDING 5000 IN THE CPC MEETING, WE'RE DOWN TO 5650 LEFT IN
CONTINGENCY TO PUT ANYWHERE. OKAY. >> YES. CORRECT. ON CASH AND
THEN 10,000 FOR IN-KIND. THANK YOU. >> SO JUST FOR CLARIFICATION, WE'RE WE'RE CURRENTLY TALKING ABOUT THE COMMUNITY PARTNERSHIP GENERAL FUND, CASH SPONSORSHIP AND IN-KIND. SO THAT'S THAT'S SEPARATE FROM THE FUNDS. HOWEVER, THERE'S, THERE'S A SCORE FOR THIS AND THERE'S A SCORE FOR THE FUND. AND IT'S THE SAME MATRIX. IT'S A DIFFERENT SCORING SYSTEM. OKAY. WELL, I WOULD HIGHLY RECOMMEND THAT WE COME BACK AND HAVE A WORK SESSION, JUST ABOUT REVIEWING THAT, TAKING A LOOK AT IT AT THE FULL COUNCIL LEVEL, BECAUSE I THINK THAT'S WHERE A LOT OF THIS IS. THERE'S A LOT OF MISUNDERSTANDING ABOUT HOW IT'S DONE, WHAT IT'S SO SO BASED UPON THE SCORING PROCESS HERE, I THOUGHT I HEARD YOU SAY THAT IF THEY'RE IN A CERTAIN SCORING AMOUNT, IT'S 50%. GOING BACK TO THOSE EXAMPLES OF THE PARKS FOUNDATION, JUNETEENTH AND THEN BLACK CHAMBER OF COMMERCE BLUES FESTIVAL, SO IS THAT RECOMMENDED IN-KIND SUPPORT ALSO, THAT'S HOW IT'S SCORED. SO THEY HAVE TO ASK FOR
[02:20:04]
CASH AND IN-KIND. AND THEN YOU'RE TAKING 50% OF THAT. IF IF IT'S WITHIN THIS SCORINGRUBRICS. IS THAT. >> SO THE THE SCORING IS BASED ON THE THE JUST THE SPONSORSHIP APPLICATION, THE IN-KIND AMOUNTS THAT YOU SEE HERE ARE AMOUNTS BASED ON THE IN-KIND THAT THE CITY PROVIDED TO THE EVENTS IN THE PRIOR YEAR TO ESTIMATE THE AMOUNT OF IN-KIND THAT THE ORGANIZATION WOULD NEED. SO IT IS NOT A STRAIGHT PERCENTAGE OF WHAT THEY
REQUESTED. >> OKAY, SO THAT'S REALLY WHERE THE DISPARITY IS. AND THIS, I MEAN, IN THE IN THE TWO THAT COUNCIL MEMBER JESTER BROUGHT UP, OF COURSE, THE RECOMMENDED CASH SPONSORSHIP, AS YOU SAID, REPRESENTS 50%. I MEAN, 10,000, 5000, 5000, 2500. AND THEN THE RECOMMENDED IN KIND. AND WHAT, WHAT I THOUGHT I HEARD YOU SAY WAS THAT'S PRIMARILY DERIVED FROM WHAT WAS REQUESTED LAST YEAR. AND WHAT THEY NEEDED IS THAT IS THAT IS THAT MY
UNDERSTANDING OR IT'S, THAT'S PART OF THE, THE FACTOR. >> YEAH. THE AMOUNT OF THE RECOMMENDATION IS BASED ON WHAT THEY REQUESTED FOR, FOR NEXT YEAR.
>> FOR NEXT YEAR. OKAY. IN THE, IN THE, IN THE IN KIND. OH, SORRY. NO. YEAH. I'M TALKING ABOUT THE IN-KIND. SO IT'S THE 20,000 AND THE 10,000 FOR THOSE TWO SPECIFICALLY. SO LAST YEAR AT THE PARKS FOUNDATION, JUNETEENTH SPENT ABOUT $20,000 OF IN-KIND THROUGH DIFFERENT, YOU KNOW, POLICE SUPPORT, MAYBE FIRE OR TRAFFIC CONTROL AND THOSE KINDS OF THINGS.
>> YES. >> THAT'S CORRECT. AND SO THEN FOR THE BLUES FESTIVAL, THAT
WAS REPRESENTS SORT OF THE COST. THAT YEAR FOR THE IN-KIND. >> CORRECT.
>> OKAY. YES. >> OKAY. AND SO WHAT WE'VE ALSO PROVIDED HERE, BECAUSE THERE ARE A COUPLE DIFFERENT COMPONENTS, IS THE TOTAL THERE ON THE VERY RIGHT HAND SIDE OF WHAT THE ORGANIZATIONS WOULD RECEIVE BETWEEN BOTH SPONSORSHIP AND IN-KIND. RIGHT,
RIGHT. >> OKAY. SO SAFE TO SAY IN THE RECOMMENDED IN-KIND SUPPORT COLUMN, THOSE REPRESENT PRIMARILY WHAT WAS USED LAST YEAR AND IN-KIND SUPPORT. IF THERE'S A DASH, IT MEANS THERE WAS NO IN-KIND SUPPORT PROVIDED LAST YEAR. AND SO THAT'S WHY IT
CAME FORWARD TO THIS YEAR. ZERO. IS THAT RIGHT? >> THE ONLY.
>> THE ONLY PIECE THAT MIGHT BE A LITTLE DIFFERENT OF THAT. THAT'S IF THEY'RE CHECKED IN THEIR APPLICATION THAT THEY WOULD BE NEEDING IN-KIND SUPPORT IN. 27. OKAY. SO THEN
WE USE THEIR ACTUAL FROM THE PRIOR YEAR. >> SO THEY DIDN'T HAVE ANY FROM
THE PRIOR YEAR. >> THEY COULD HAVE HAD LIKE ON THE KIWANIS ONE. THEY DEFINITELY PROBABLY HAD IN-KIND SUPPORT, BUT INDICATED FOR THEIR 27 APPLICATION THAT THEY WEREN'T GOING TO, THAT THEY DIDN'T APPLY FOR IT. OKAY. SO THAT IS TRUE FOR ALMOST ALL OF THEM. WE THINK THE KIWANIS, THAT MAY HAVE BEEN AN APPLICATION ERROR WHEN THEY
SUBMITTED. >> OKAY. ALL RIGHT. >> OKAY, FANTASTIC. WELL THAT'S HELPFUL. THAT'S A HELPFUL CONVERSATION. YES. COUNCIL MEMBER PERRY.
>> I HAVE ONE MORE QUESTION. SORRY. ON IN BECAUSE WE'RE ON IN-KIND. I KNOW SOME APPLICATIONS. I DON'T KNOW HOW MANY ASKED FOR AN INCREASE IN IN-KIND SUPPORT. I'M WONDERING HOW MANY OF THEM ARE REFLECTED IN THE. 27 RECOMMENDATION. BECAUSE IN THE MATRIX THAT I HAVE FROM THE CPC MEETING, WE NEVER WE DIDN'T GET TO SEE THEIR 26 IN-KIND. AGAIN, I UNDERSTAND THAT WE COPIED AND PASTED FOR THE ONES THAT DIDN'T ASK FOR AN INCREASE, HOW MANY
ASKED FOR AN INCREASE DO YOU KNOW? >> THOSE. THEY DON'T REQUEST A DOLLAR AMOUNT FOR IN-KIND. THEY JUST INDICATE ON THEIR APPLICATION THEY NEED IT. AND THEN THE SPECIAL EVENT TEAM WORKS WITH THEM TO DETERMINE, BASED ON YOUR ATTENDANCE, HOW MANY OFFICERS YOU'RE GOING TO HAVE. IF OFFICERS ARE REQUIRED BECAUSE THERE WILL BE ALCOHOL, WHAT DUMPSTERS. SO THE CITY DETERMINES THOSE IN-KIND DOLLAR AMOUNTS.
>> OKAY. I'M THINKING OF LIKE NORTH TEXAS RODEO. I KNOW I SAID A SPECIFIC AMOUNT FOR IN-KIND, BUT THAT DOESN'T MEAN THAT THAT'S A CORRECT NUMBER BECAUSE YOU WOULD NEED TO SIT
DOWN AND ESTIMATE THAT WITH THEM. RIGHT. >> TRUE IT UP. CORRECT. AND THEN SOME ORGANIZATIONS LIKE THE RODEO IS ONE EXAMPLE WHERE THEY MAY DECIDE TO NOT UTILIZE OUR EMS SERVICES AND USE A THIRD PARTY. SO IT'S JUST THEY'RE BASED ON THE INDIVIDUAL EVENT, WHAT WHAT SUPPORT THEY NEED. AND THEN WE COME UP WITH WHAT, WHAT THAT SUPPORT DOLLARS LOOK LIKE, HOW MANY OFFICERS ARE GOING TO NEED, HOW MANY DUMPSTERS, HOW MUCH PARK
SUPPORT. SO THOSE ARE INDIVIDUAL PER EVENT. >> THANK YOU FOR THE
CLARIFICATION. >> SO I BELIEVE IT WAS LAST YEAR'S CORRECT ME IF I'M WRONG.
I WASN'T ON COUNCIL AT THE TIME, BUT WE WENT FROM A I MEAN, THERE WAS A BUDGET REDUCTION FROM THE IN-KIND THAT WE ALLOCATED IN THE GENERAL FUND. AND I THINK IT WENT FROM I
THINK IT WAS AT 450 TO 200 OR 250 OR SOMETHING LIKE THAT. >> YOU'RE CORRECT. LAST YEAR'S
[02:25:05]
BUDGET REDUCTIONS WENT REDUCED IT FROM $400,000 WORTH OF IN-KIND SUPPORT TO $200,000WORTH OF IN-KIND SUPPORT. >> OKAY. >> AND SO THAT CERTAINLY HAD AN
IMPACT ON DETERMINING CLEARLY, RIGHT? >> BECAUSE THEY COULD HAVE USED THAT FOR PARK RENTAL FEES SUPPORT. SO CERTAINLY THAT WE DID REDUCE THAT SUPPORT IN THE
PRIOR FISCAL YEAR BY ABOUT HALF. >> OKAY. >> SO THAT, I MEAN, AT SOME POINT, IF COUNCIL WANTED TO HAVE A DISCUSSION ABOUT, OKAY, WELL.
>> INCREASING IT. >> OR THEN EITHER THIS IS THE TIME TO HAVE IT OR SOME OTHER TIME. SO IF IT WERE REDUCED BACK THEN BECAUSE OF A BUDGET ISSUE, CAN THINGS BE CHANGED BECAUSE OF MAYBE CHANGING CIRCUMSTANCES, UNDERSTANDING THAT THERE'S A LOT OF UNCERTAINTY MOVING FORWARD. BUT OKAY, I JUST WANTED TO POINT THAT OUT, THAT THERE, YOU KNOW, WE'RE LOOKING AT THESE NUMBERS AND THE 200,000 IS THAT LIMIT, BUT THAT WAS CHANGED.
>> FROM 400. >> FROM 400,000 TO 200,000. OKAY. ALL RIGHT.
>> AND THEN ANY CONVERSATION ON REALLOCATING, NOW'S THE TIME. THE CASH.
>> WELL, I MEAN, I'LL JUST THROW IT OUT THERE. DOES COUNCIL HAVE ANY APPETITE TO LOOKING AT ADJUSTING THAT IN-KIND ALLOCATION FROM THE $200,000, JUST OVERALL BUDGET TO ANYTHING DIFFERENT? AND IF SO, GREAT. IF NOT, THAT'S OKAY TOO. WE'LL WORK WITHIN. WE'LL
WORK WITHIN WHAT WE HAVE. COUNCIL MEMBER RUMOHR. >> I WONDER IF THERE'S ANY POTENTIAL TO INCREASE IT GENERALLY LIKE MAYBE 50KA YEAR AND SLOWLY WORK IT BACK UP IN SOME WAY. SO IT'S NOT A BIG JUMP. I WONDER IF THERE'S ANY OPPORTUNITY FOR THAT TO FIND 50
SOMEWHERE ELSE AND SHIFT IT. >> OKAY. ALL RIGHT. COUNCIL MEMBER JESTER.
>> ALSO, I THINK OBVIOUSLY WE HAVE TO DISCUSS WHERE IT COMES FROM. SURE.
>> OF COURSE. YEP. AND GO AHEAD. I'M SORRY. >> I DO WANT TO I DO WANT TO POINT OUT WE HAVE WE'LL HAVE A DISCUSSION LATER ON, BUT THERE IS ABOUT $800,000 SET ASIDE FOR COUNCIL CONTINGENCY OR COUNCIL PRIORITY ITEMS. SO IF WE COULD ADD THAT TO THE LIST AS ONE OF
THE POTENTIAL FUNDING OPPORTUNITIES. >> ALL RIGHT, LET'S MAKE A NOTE OF THAT. AND SO THAT WOULD PROBABLY BE A MORE APPROPRIATE PLACE TO DISCUSS THIS, BECAUSE THEN IT'S GETTING DOWN TO THE FINAL KIND OF ANALYSIS. OKAY, GREAT. ALL RIGHT. ANY OTHER QUESTIONS ON THIS PARTICULAR SLIDE OF THE COMMUNITY PARTNERSHIP COMMITTEE, GIVEN THAT WE MAY HAVE A CONVERSATION ABOUT FUNDING ALLOCATIONS, IF THAT'S THE CASE, THEN WE MIGHT HAVE TO REVISIT SOME OF THESE ALLOCATIONS IN THAT REGARD. OKAY, GREAT. ALL RIGHT. THANK
YOU. >> ALL RIGHT. NEXT WE'RE GOING TO MOVE TO THE ENTERPRISE FUNDS, WHICH INCLUDES WATER, WASTEWATER DRAINAGE, SOLID WASTE, ELECTRIC. AND THEN WE'LL ALSO BE COVERING THE AIRPORT IN THIS SECTION TOO. SO WE'LL HOLD FOR A MOMENT FOR EVERYONE TO
SWITCH OUT. >> OKAY. OH, WOW. THANK YOU ALL FOR COMING.
>> 20 MINUTES. DO YOU THINK? >> SURE. WE CAN TAKE AWELCOME ES MEETING OF THE DENTON CITY COUNCIL. AUGUST THE 8TH. ON SATURDAY. THIS IS OUR BUDGET WORKSHOP. IT IS 1123. AND WE
WILL RESUME OUR PRESENTATION. >> THANK YOU MAYOR. >> AS YOU MAY RECALL FROM OUR JULY 14TH WORK SESSION, ENTERPRISE FUNDS OPERATE MORE LIKE A BUSINESS. THEY'RE FUNDED PRIMARILY THROUGH RATES PAID BY CUSTOMERS AND DESIGNED TO BE SELF-SUSTAINING. THEY DON'T RELY ON PROPERTY TAX OR SALES TAX REVENUES. I'M GOING TO WALK YOU THROUGH EACH UTILITY INDIVIDUALLY IN THE NEXT SLIDES, INCLUDING RATE CHANGES, MAJOR CAPITAL PROJECTS AND OPERATIONAL CHALLENGES. SO WE'RE GOING TO START WITH THE WATER FUND. THIS SUPPORTS THE DELIVERY OF SAFE DRINKING WATER BY SOURCING, TREATING, TESTING AND DISTRIBUTING IT THROUGH THE CITY'S WATER SYSTEM. WE ARE PROPOSING A 3% RATE INCREASE FOR THE WATER FUND TO SUPPORT GROWTH AND ADDRESS THE NEEDS OF AGING INFRASTRUCTURE. WE'RE ALSO ASSUMING THAT WE WILL RECEIVE WIFIA FUNDS, WHICH HELP SUPPORT LARGE INFRASTRUCTURE PROJECTS, AND DO SO AT A LOWER INTEREST RATE. WITH THAT, WE ARE ANTICIPATING REPAYMENT TO START FOR THOSE FUNDS IN 2032.
THIS YEAR'S BUDGET HIGHLIGHTS, ALONG WITH PRIORITIES, A HEAVY FOCUS ON RESILIENCY AND MODERNIZATION THAT LEADS TO LONG TERM RELIABILITY, ESPECIALLY AS DENTON CONTINUES TO GROW. THIS INCLUDES INTEGRATING AN ASSET MANAGEMENT SYSTEM. I KNOW I MENTIONED THAT
[02:30:05]
EARLIER FOR ONE OF OUR OTHER DEPARTMENTS, I BELIEVE IT WAS PARKS, BUT THIS WILL HELP THE UTILITY PRIORITIZE REPAIRS, MANAGE RISKS, AND PLAN REPLACEMENTS MORE EFFICIENTLY.WHILE PRIORITIES INCLUDE THE COMPLETION OF THE LEAD AND COPPER RULE INVENTORY, THAT INVENTORY IS ACTUALLY NOW COMPLETE, AND THE DEPARTMENT IS FOCUSED ON ADDRESSING FINDINGS OF THAT INVENTORY. THE WATER FUND HAS APPROXIMATELY 116 FTE. OVERALL, THE FUND IS STABLE BUT REQUIRES ONGOING INVESTMENT IN OUR INFRASTRUCTURE. THIS BUDGET DOES REFLECT A BALANCE BETWEEN MAINTAINING AFFORDABILITY AND ENSURING, AGAIN, THAT WE'RE PREPARED FOR FUTURE GROWTH AND THAT WE ARE ADDRESSING INFRASTRUCTURE NEEDS. SO HERE IS A LOOK AT THE PROFORMA FOR THE WATER FUND. IT'S A FIVE YEAR LOOK AHEAD AT REVENUES, EXPENDITURES, RESERVES AND PLANNED CAPITAL INVESTMENTS. YOU'LL RECALL FROM OUR MEETING JUST THIS PAST TUESDAY THAT THERE IS A SIGNIFICANT CAPITAL INVESTMENT OVER THE NEXT FIVE YEARS. AND THAT IS REFLECTED IN THIS PERFORMANCE AS WELL. WE ARE PROJECTING MODERATE INCREASES EACH YEAR GOING FORWARD, WITH FUND BALANCE TARGETS BEING MET IN EACH OF THOSE YEARS.
>> ANY QUESTIONS? YES. COUNCIL MEMBER RUMOHR. >> YOU SAID THAT THE REPAYMENTS
WOULD BEGIN 2032. CORRECT. >> THAT IS CORRECT. >> SO ON THE DEBT SERVICE TRANSFERS, THIS ONLY GOES TO FY 2031. WOULD WE ANTICIPATE A SIGNIFICANT SPIKE IN THAT NUMBER AFTER WE START DOING WITH PAYMENTS. OR DO WE HAVE ANY IDEA OF HOW MUCH THAT MIGHT
BE. >> GOING TO HAVE MATT HAMILTON COME UP AND ADDRESS THAT FOR
YOU? >> NO LUNCH FOR YOU? >> YEAH, THE SHORT ANSWER IS YES. THE DEBT SERVICE PAYMENTS WILL INCREASE SIGNIFICANTLY. ONE OF THE BIG BENEFITS TO WIFIA IS THE DEFERRAL OF PAYMENTS UNTIL THE CONSTRUCTION OF THE PLANTS ARE COMPLETE, WHICH ALLOWS TIME FOR THE DEVELOPMENT THAT THEY'RE BEING BUILT FOR TO BE BUILT. AND THEN YOU WOULD HAVE THAT EXPANSION OF, OF THE UTILITY RATE BASE. SO I DON'T HAVE THE NUMBER OFF THE TOP OF MY HEAD OF WHAT THAT DEBT SERVICE WOULD LOOK LIKE IN 2032. BUT IT WOULD INCREASE.
>> OKAY. WELL, I DO APPRECIATE THAT WE'RE AT LEAST MEETING MINIMUM FUND BALANCE ACROSS THE BOARD. SO WHEN WE HIT THAT POINT, HOPEFULLY WE'LL BE IN A LITTLE BIT BETTER POSITION.
>> YEAH. EXCUSE ME. WHAT'S WHAT'S REALLY IMPORTANT IS THOSE RATE INCREASES EACH YEAR IN ORDER TO EFFECTIVELY BUILD UP ENOUGH TO THEN SUPPORT THAT, THAT PAYMENT THAT'S GOING TO START BECOMING DUE IN 2032 WITH THE COMPLETION OF THE PLANTS. IF WE DID NOT INCREASE RATES INCREMENTALLY EACH YEAR, IT WOULD BE A CONSIDERABLE RATE INCREASE. AS WE APPROACH 20, 32.
>> 20% OR SOMETHING IT LOOKS LIKE OR MORE. YEAH. ALL RIGHT. THANK YOU.
>> JUST GOT A COUPLE QUESTIONS, I BELIEVE, AND WE TALKED ABOUT THIS EARLIER ABOUT THE AUTOMATED WATER METERS THAT WERE EXPENDING FUNDS FOR AUTOMATED WATER METERS. IS THAT IS THAT CORRECT? AND ALSO, WILL THOSE WATER METERS. AND THE REASON I ASK THIS IS, YOU KNOW, YOU HEAR OCCASIONALLY WHERE PEOPLE HAVE WATER LEAKS AND THEY'RE UNDERGROUND AND I MEAN, THOUSANDS OF GALLONS OF WATER, IF NOT HUNDREDS OF THOUSANDS OF GALLONS OF WATER. AND SO WITH THESE NEW METERS, WILL WE HAVE THE OPPORTUNITY TO EITHER ALERT SOMEONE TO THAT SITUATION? I MEAN, SO IF WE'RE GOING TO EXPEND THOSE FUNDS, I WOULD HOPE THAT WE'D HAVE BUILT INTO THAT AN OPPORTUNITY TO ALERT EITHER THE CUSTOMERS, BECAUSE I KNOW IN SOME OTHER MEAN, THEY'RE NOT, YOU KNOW, ATMOS WILL COME OUT AND CHECK YOUR METER RIGHT AWAY IF THERE BECAUSE THEY'RE MONITORING THE USAGE AND COMPARING IT. SO IS THAT SOMETHING CAPABILITY
THEY'LL HAVE. >> BASED ON MY EXPERIENCE WITH THE WATER UTILITY AND AM I. YES.
BUT I'M GOING TO HAVE STEVEN COME UP AND SHARE A LITTLE BIT MORE WITH YOU ABOUT THAT
PROJECT. >> GOOD MORNING, STEVEN. GENERAL MANAGER, WATER UTILITIES AND STREET OPERATIONS. THE SHORT ANSWER IS YES. THE AUTOMATED METERING SYSTEM ACTUALLY HAS A CUSTOMER PORTAL WHERE OUR CUSTOMERS CAN SIGN UP FOR ALERTS. THEY CAN ALSO MANAGE THEIR BILL TO. SO IF THEY WANTED TO SAY, I ONLY WANT TO SPEND X DOLLARS ON MY WATER BILL PER MONTH, IT WILL SEND THEM ALERTS SO THEY CAN GO IN THERE AND SET UP ALL THOSE TRIGGERS, BUT IT MONITORS THEIR USE DYNAMICALLY. IT CAN, THROUGH ITS ANALYTICS,
[02:35:04]
DETERMINE WHETHER OR NOT THERE'S A LEAK ON SITE AND NOTIFY THEM IN THE MOMENT ANDNOT A MONTH OR TWO AFTERWARD. >> OKAY. AND WHEN DO YOU ANTICIPATE FULL IMPLEMENTATION
OF OF THOSE, AT LEAST ALONG THE RESIDENTIAL SECTOR? >> TWO YEARS. AND WE JUST BEGUN.
SO TWO, TWO YEAR IMPLEMENTATION. SO WE JUST STARTED, WE'RE STARTING THIS YEAR WITH THE FIRST PHASE, AND WE'RE HOPING TO HAVE EVERYTHING ROLLED OUT IN TWO YEARS.
>> OKAY. COUNCIL MEMBER HOLLAND. >> WILL THAT AFTER THE NEW METER IS PUT IN, WILL THERE BE ANY DIFFERENCE FROM THE STREET OR WILL IT WILL IT FILL IN THE SAME, THE SAME.
>> SAME HOLE? YEAH. AND PART OF PART OF THE AND YOU MAY RECALL WE ALSO APPLIED FOR THAT GRANT THROUGH THE TEXAS WATER DEVELOPMENT BOARD TO HELP. AND. AND PART OF THOSE MONIES WILL BE USED TO UPGRADE THE METER PITS. SO THE ACTUAL BOX OR THE, THE CAN THAT THE METERS SIT IN.
UPGRADED JUST TO MAKE IT MORE BECAUSE WE HAVE SOME OLDER CONCRETE ONES THAT ARE THAT ARE NEEDING TO BE REPLACED. AND SO THEY'LL BE UPGRADED. THEY'LL JUST BE.
>> I SEE. EXCELLENT. THANK YOU. >> AND THAT APPLIES TO BOTH COMMERCIAL AND RESIDENTIAL.
THIS PROGRAM. WE'RE CHANGING OUT ALL OF THEM. YES, SIR. OKAY. NO MATTER THE SIZE THREE
QUARTER INCH WHATEVER. >> THAT'S RIGHT. WE'RE STARTING WITH RESIDENTIAL. BUT. BUT THE
TWO YEAR WINDOW INCLUDES BOTH RESIDENTIAL AND COMMERCIAL. >> OKAY. AND IF IF POSSIBLE, NOT TODAY OR EVEN IN THIS BUDGET CYCLE. I'D BE CURIOUS IN THE I GUESS IT'D BE THE CAPITAL IMPROVEMENTS, THE CAPITAL PLAN. WHAT'S THE COST WHEN YOU KNOW, BECAUSE WE'RE LOOKING AT SOME DEVELOPMENTS, WE'RE EXTENDING WATER AND SEWER LINES OUT BEYOND THE CITY LIMITS. I'D JUST LIKE TO GET AN IDEA OF SOMETIMES WHAT THOSE COSTS WERE RELATIVELY RELATIVE TO THE CURRENT BUDGET. SO JUST WHENEVER IT'S I DON'T I DON'T NEED I JUST WANT TO HAD YOU UP
THERE, I THOUGHT I'D ASK. THANK YOU. >> APPRECIATE IT.
>> THANK YOU. MAYOR. YES. COUNCIL MEMBER PERRY. >> THANK YOU. SO JUST SO I UNDERSTAND, I'M WONDERING. IT LOOKS AS IF ONE OF THE BIGGEST STRESSORS IS THE AMOUNT OF DEBT
WE HAVE. CORRECT? >> YEAH, I WOULD SAY THAT. >> RIGHT. LIKE OVER 700 MILLION ACROSS THE PROJECTION. OKAY. AND I'M WONDERING IF YOU COULD EXPLAIN REAL QUICK THE SHIFT FROM THE ESTIMATE OF 2526 TO 2627 IN WHERE ARE YOU? WHERE ARE YOU? IS THE 2 MILLION. CAN YOU JUST EXPLAIN THE 2 MILLION INCREASE IN PERSONNEL SERVICES? FIRST AND FOREMOST, PLEASE.
FROM 11 MILLION TO 13 MILLION. 11.1 TO 13.3. >> YEAH. SO SO THE ESTIMATE WOULD INCLUDE ANY ANY SAVINGS IN A REDUCED RELIANCE ON OVERTIME. ANY VACANCIES THAT HAVE OCCURRED DURING THE FISCAL YEAR. SO THAT WOULD REFLECT ANY SALARY SAVINGS BASED ON THAT.
PRIMARILY IT WOULD BE AS WITH GENERAL FUND IT WOULD BE VACANCIES WHERE WE HAVE EXPERIENCED SALARY SAVINGS. I BELIEVE YOU'VE HAD SOME REORGANIZATIONS AS WELL. THAT
WOULD ALSO CHANGE THAT PERSONNEL SPEND. >> OKAY. I THINK THAT'S MY ONLY
QUESTION FOR RIGHT NOW. THANKS. >> ANY OTHER QUESTIONS FOR WATER FUND BUDGET? OKAY.
>> ALL RIGHT. NEXT WE'LL TURN TO WASTEWATER, WHICH MANAGES THE ENTIRE SYSTEM FOR CONVEYING, TREATING AND RECYCLING WASTEWATER CORRECTION ON THIS SLIDE, BUT CERTAINLY ALIGNS WITH THE PRESENTATION THAT YOU'VE HAD THIS PAST WEEK. AND I BELIEVE MAYBE TWO WEEKS BEFORE THAT. IT IS STILL 9%. SO THAT DOES NOW SHOW 9% ON THIS SLIDE AS WELL AS ON THE PROFORMA. THIS AGAIN SUPPORTS GROWTH AS WELL AS THE MAINTENANCE OF AGING INFRASTRUCTURE. AGAIN, WE ARE ANTICIPATING WITH THE FUNDS TO SUPPORT WASTEWATER PROJECTS AS WELL AS STATE FUNDING THROUGH THE T W, D B CLEAN WATER PROGRAM. WASTEWATER HAS 74 FTE AND IS MOVING FORWARD WITH SEVERAL SIGNIFICANT CAPITAL PROJECTS. YOU MAY RECALL THIS INCLUDES PECAN CREEK, CLEAR CREEK AND HICKORY CREEK. HERE IS THE FUNDS PROFORMA AGAIN, IT SHOWS THAT THE FUND REMAINS WITHIN RESERVE BALANCE TARGETS. RATE INCREASES ARE PLANNED TO AVOID LARGE SPIKES IN THE FUTURE. SO JUST REALLY EVENING OUT THOSE RATE INCREASES IN ORDER TO MEET TODAY'S NEEDS. PREPARE FOR THOSE WITH THE FUNDS REPAYMENTS THAT START IN
THE OUT YEARS AND AGAIN, JUST WORKING TO AVOID RATE SHOCK. >> ANY QUESTIONS? YES. COUNCIL
MEMBER RUMOHR. >> JUST HAD ONE QUESTION FROM THE HIGHLIGHTS ON SLIDE 38.
THERE'S A FEASIBILITY STUDY TO EXPLORE THE VIABILITY OF A RIVERWALK USING REUSE SYSTEM.
WHERE WOULD THAT BE? >> I'M GOING TO WELCOME STEVE AND GET BACK UP TO TALK TO YOU
[02:40:04]
ABOUT THAT ONE. >> GOOD AFTERNOON. CAN YOU RESTATE THE QUESTION? SO I
ANSWER, SURE. >> I'M JUST REALLY ASKING WHERE THIS PROPOSED RIVERWALK WOULD
BE IN TERMS OF THIS FEASIBILITY STUDY. >> THE FEASIBILITY STUDY IS TO EVALUATE WHETHER OR NOT WE COULD TAKE OUR TREATED WATER FROM THE CONCRETE WASTEWATER TREATMENT FACILITY, PUMP IT UP TO THE NORTH LAKES AREA, AND USE THE EXISTING CHANNEL SYSTEM TO BRING THE WATER BACK DOWN THROUGH THE CITY AND CREATE AN WELL, MORE OF A WETLANDS TYPE OF AN ENVIRONMENT. AND WE CAN WE CAN LEVERAGE THAT WATER MORE EFFECTIVELY FOR OUR WATER SUPPLY. SO THIS IS THE VERY BEGINNING PHASES OF IT. WE ARE. AND SO WE'RE EVALUATING THE
FEASIBILITY OF THAT. >> OKAY. SO THE LOCATION'S A PRETTY BROAD LOCATION IT SOUNDS
LIKE. OKAY. THANK YOU. >> YES. COUNCIL MEMBER PERRY. >> I'M WONDERING FROM LAST YEAR TO THIS YEAR, I THINK IT WAS LIKE 99 FULL TIME EMPLOYEES TO 74. SO THAT'S A 25 EMPLOYEE SHIFT. I BELIEVE THOSE SHIFTED TO OTHER DEPARTMENTS. AND I GUESS I'M WONDERING, IN THE BUDGET, IN THE ACTUAL NUMBERS THAT ARE CRUNCHED, I'M WONDERING HOW THAT SHIFT WASN'T AS DYNAMIC, AND I'M WONDERING IF THAT'S ALL JUST BEING ALLOCATED TO DEBT RECOVERY.
>> SO THEY WERE MOVED TO THE DRAINAGE FUND, WHICH STILL DOES FALL UNDER STEPHEN'S PURVIEW.
SO YOU WILL SEE THAT IN A FEW SLIDES THAT THEY HAVE FTE IS NOW ASSIGNED UNDER THAT FUND.
AND THEN WHAT IS THE NET. LET ME SEE WHAT THE NEXT PART OF YOUR QUESTION IS.
>> BY GETTING 25 EMPLOYEES OFF THE ROLL PAYROLL FOR WATER FUND. I'M WONDERING IN PERSONNEL
SERVICES HOW THAT SHIFT DOESN'T REFLECT THAT. >> I SEE WHAT YOU'RE ASKING NOW.
LET US LOOK INTO THAT. I MEAN, WE WE DO HAVE OUR MERIT INCREASES OF WASTEWATER. I'M
SORRY. RIGHT. >> OH, DID I SAY. YES. YES. WHAT DID YOU SAY? I'M SORRY.
>> COME ON UP. >> YES! WE'RE ON WASTEWATER. >> SO OUR BUDGET MANAGER. YEAH.
THE POSITION CHANGE WAS OUT OF THE WASTEWATER FUND, NOT THE WATER FUND.
>> RIGHT. SO. MAYBE I'M MISUNDERSTANDING. I'M SO SORRY. WASTEWATER HAS 74 FULL TIME FTES. IT HAD 99 LAST YEAR. SO MY QUESTION IS IN PERSONNEL SERVICES WE WENT FROM 6.6 AT THE END OF THIS YEAR TO UP TO 8 MILLION. AND I'M WONDERING HOW THAT SHIFT WENT UP INSTEAD OF DOWN LOSING 25 EMPLOYEES. AND IF ANY OF THAT FUNDING IS BEING USED FOR DEBT SERVICE TRANSFERS
TO PAY OFF DEBT. >> COUNCIL MEMBER PERRY, IF YOU LOOK AT BUDGET TO BUDGET, SO 26 BUDGET IS 8.4 MILLION AND PROPOSED BUDGET IS 8 MILLION. THAT'S WHERE ALL OF THE POSITIONS ARE BUDGETED. SO THAT DECREASE WOULD BE SOME OF THE DRAINAGE POSITIONS LEAVING THE FUND. SO I JUST WANT TO CLARIFY, WE IF YOU LOOK AT ACTUALS TO ESTIMATE, YOU'RE GOING TO SEE AN INCREASE THAT'S LIKELY DUE TO OVERTIME AND OTHER THINGS. BUT THE BUDGET TO BUDGET IS REALLY WHERE YOU'RE SEEING ALL THE ALL OF THE POSITIONS BUDGETED 100%. SO IF THERE WERE.
BUT IF THE POSITIONS ARE LEAVING THE FUND, THAT'S WHERE YOU'RE GOING TO SEE THEM.
>> SO YOU HAVE THE 8.4 IN THE CURRENT YEAR BUDGET AND THEN MOVING TO 8.0 IN THE PROPOSED BUDGET. SO THAT WOULD BE REFLECTING THE MOVEMENT OF THOSE POSITIONS OVER TO THE DRAINAGE FUND. BUT THEN IT IS ALSO OFFSET BY THE MERIT, BY CHANGES IN THAT NATURE THAT ARE BUILT INTO THOSE NUMBERS, INCREASES IN INSURANCE, CHANGES IN OVERTIME. THAT'S ALL REFLECTED IN THERE, SO THAT YOU HAVE A NET DECREASE OF ABOUT $450,000 FOR PERSONNEL.
>> AND IF YOU WANT US TO PROVIDE A MORE DETAILED BREAKOUT, WE CAN DO THAT OF PERSONNEL FOR THIS FUND. SO YOU CAN SEE THE YEAR OVER YEAR CHANGES. WE'RE HAPPY TO DO THAT.
>> SURE. I APPRECIATE THAT, BECAUSE THE DEBT SERVICE TRANSFER IS INCREASING BY $7 MILLION OVER ONE YEAR. SO THAT'S MY CONCERN IS WHERE DID WE MAKE UP THOSE COSTS. BUT YOU'RE SAYING $400,000 FOR THOSE 25 FTES IS HOW THAT'S EXPLAINED.
>> THAT'S THAT'S A PIECE OF IT. BUT THEN WE ALSO. >> HAD RATE INCREASES TO
SALARIES. >> RATE, CORRECT? >> OKAY. THANKS.
>> ALL RIGHT. ANY OTHER QUESTIONS? OKAY. >> NEXT WE'RE GOING TO LOOK AT THE DRAINAGE FUND. SO THIS IS WHERE WE FUND OUR STORMWATER INFRASTRUCTURE MANAGEMENT. WE ARE PROPOSING A 5% INCREASE ON THE DRAINAGE FUND, WHICH IS GOING TO SUPPORT CRITICAL
[02:45:05]
STORMWATER PROJECTS. AND AGAIN, HELP KEEP PACE WITH SYSTEM MAINTENANCE. THIS WILL ACTUALLY BE THE FIRST INCREASE PROPOSED FOR THIS RATE SINCE IT WAS ADOPTED IN 2002. IT IS EXPECTED TO GENERATE APPROXIMATELY $371,000 IN REVENUE FOR 2027. HERE'S WHAT YOU'LL SEE. THOSE STAFFING CHANGES. SO THE FIRST PIECE IS THAT WE DID MOVE POSITIONS OVER SO TO THE DRAINAGE FUND, BUT WE ALSO MOVE POSITIONS OUT OF THE DRAINAGE FUNDS. THERE'S A LOT OF MOVEMENTS HERE. SO WE MOVED EIGHT POSITIONS OUT OF THE DRAINAGE FUND TO THE ENVIRONMENTAL SERVICES FUND. AND THOSE ARE THE WATERSHED POSITIONS THAT HAVE MOVED TO ENVIRONMENTAL SERVICES AND SUSTAINABILITY. BUT THEN WE ALSO ADDED A POSITION TO THE DRAINAGE FUND WITH A MOVEMENT FROM THE ENGINEERING FUND. SO THERE ARE A FEW MOVING PIECES IN THIS FUND IN THE CURRENT YEAR THAT WILL MAKE UP FOR SOME OF THOSE VARIANCES THAT YOU'LL SEE ON THE NEXT SLIDE. SO THIS NEXT SLIDE IS THE PROFORMA FOR THE DRAINAGE FUND. THE DRAINAGE FUND MAINTAINS A BALANCE OF $1 MILLION. ANYTHING IN EXCESS OF THAT IS THEN USED TO PAY FOR CAPITAL INVESTMENTS WITHIN THAT FUND OR FOR THE DRAINAGE. ANY QUESTIONS ON THAT?>> YES. COUNCIL MEMBER RUMOHR. >> ON THE SLIDE 40, IT SAYS THAT ONE OF THE PRIORITIES WILL BE A PECAN CREEK STORMWATER MASTER PLAN. AND MY QUESTION WAS, I KNOW SOUTH RIDGE IN MY DISTRICT HAS SOME FLOODING ISSUES. WOULD THAT HELP WITH THOSE FLOODING ISSUES AT ALL OR
IS IT NOT RELATED. >> TO HAVE STEPHEN GAY JOIN US AGAIN?
>> THE SOUTH RIDGE IS WITHIN THE SAME PECAN CREEK BASIN, SO IT WILL BE STUDIED AS PART OF THE THE THE STUDY. SO SO ANY IDENTIFY AREAS OF IMPROVEMENT INFRASTRUCTURE NEEDS THINGS LIKE THAT. AND THEN FROM FROM THE THE DRAINAGE STUDY, WE WILL BUILD A CAPITAL PLAN TO ADDRESS
SOME OF THOSE CHALLENGES. >> OKAY. THANK YOU SO MUCH. >> DON'T GO FAR.
>> SORRY. WE WERE OVER THERE TALKING WASTEWATER. >> OKAY. ANY OTHER QUESTIONS?
>> THE DRAINAGE FUND. OKAY. THANK YOU. ALL RIGHT. SO NEXT WE ARE GOING TO LOOK AT THE ELECTRIC UTILITY, LOOKING AT THE ELECTRIC FUND. THIS INCLUDES A 3% INCREASE TO THE BASE RATE THAT WHEN YOU ACCOUNT FOR OTHER ADJUSTMENTS, IS EFFECTIVELY A RATE CHANGE TO CUSTOMERS. IF CLOSER TO 1.5%. ELECTRIC ALSO MANAGES THE E, C A AND T, C, R F, SO THE ENERGY COST ADJUSTMENT AND TRANSMISSION COST RECOVERY FACTOR. THESE ARE TWO PASS THROUGH CHARGES THAT ARE REVIEWED QUARTERLY. WHILE WE ARE. JUST NOW MENTIONING, AND I APOLOGIZE, I DON'T KNOW WHY THIS IS THE FIRST TIME THIS THIS HAS COME UP, BUT IT IS INDICATED ON THIS SLIDE THAT VACANCIES ARE ADJUSTED TO THE BOTTOM OF THE PAY BAND. THAT WAS TRUE FOR ALL VACANCIES ACROSS THE ORGANIZATION. SORRY WE DID NOT MENTION THAT EARLIER, BUT THAT IS THE CASE AGAIN FOR ALL FUNDS WHERE THERE WERE VACANCIES, INSTEAD OF BUDGETING THEM AT MIDPOINT, WE'RE BUDGETING THEM AT THE LOWER END. ONE OF THE CHANGES THIS YEAR THAT DME IS MAKING IS CREATING A NEW ELECTRIC PLANNING AND INSPECTIONS DIVISION. THEY ARE DOING SO WITH EXISTING PERSONNEL, BUT THIS WILL HELP THEM TO BETTER ALIGN FUNDING WITH OPERATIONAL RESPONSIBILITIES. ELECTRIC HAS 189 FTE. THIS YEAR'S PRIORITIES INCLUDE COMPLETING THE UNDERWOOD SUBSTATION CONSTRUCTION, IMPLEMENTING THE STATE WILDFIRE MITIGATION POLE INSPECTION REQUIREMENTS, ADVANCING THE INTEGRATED RESOURCE PLAN, FINALIZING THE RENEWABLE ENERGY POLICY, AND THEN SECURING ERCOT APPROVAL TO RESOLVE TRANSMISSION OVERLOADS. SO HERE IS THE PROFORMA FOR THE ELECTRIC FUND. AGAIN, THERE ARE MODERATE INCREASES FOR THE NEXT FIVE YEARS. THE FUND IS EXPECTED TO REACH ITS FUND
BALANCE TARGETS BY 2031. >> ANY QUESTIONS? YES. COUNCIL MEMBER RUMOHR.
>> THIS IS JUST FOR INFORMATION FOR LATER. I, I GET QUESTIONS ABOUT THIS OCCASIONALLY IN TERMS OF WHERE DOES DO ALL THE TRANSFERS FROM ELECTRIC GO. SO I'D BE CURIOUS WHEN I, WHEN I LOOKED THROUGH THE OTHER INTERNAL FUNDS, I COULD ACCOUNT FOR MAYBE 12 MILLION OF THE 23
[02:50:02]
MILLION BEING TRANSFERRED OUT OF ELECTRIC. SO AT SOME POINT, I'D BE CURIOUS TO SEE SORT OF WHERE THAT 23 MILLION GOES, WHAT DEPARTMENTS AND HOW MUCH. THANK YOU.>> I DO HAVE THAT BREAKDOWN AVAILABLE. >> YOU HAVE IT ALREADY. I DO
OWE. >> SOMETIMES IT WORKS. >> OUT OKAY. OKAY.
>> I HAD A LOT OF BACKUP MATERIAL. SO WE HAVE A $3 MILLION TRANSFER TO CAPITAL PROJECTS. THAT'S FOR CASH FUNDING, VEHICLE REPLACEMENTS. ANOTHER 500,000 AGAIN FOR CAPITAL, WE HAVE ADMINISTRATIVE TRANSFERS. KEEPING IN MIND THAT THAT THEN COVERS THE COST OF SERVICES THAT ARE PROVIDED BY THE FUNDS OR THE DEPARTMENTS THAT THOSE DOLLARS ARE BEING TRANSFERRED TO. SO 5.5 TO THE GENERAL FUND, WE HAVE 1.3 GOING TO MATERIALS MANAGEMENT, WHICH IS OUR WAREHOUSE AND PROCUREMENT TECH SERVICES FOR FIVE ENGINEERING LITTLE UNDER A MILLION RISK EXPENSE, 10,000 CUSTOMER SERVICE, 4.4 MILLION. THAT'S PROBABLY THAT IS THEIR LARGEST TRANSFER OUT THEN FOR SUPPORT PROVIDED BY FACILITIES, ABOUT 760,000 SUPPORT PROVIDED BY ENVIRONMENTAL SERVICES AND SUSTAINABILITY AT ABOUT 260,000, AND THEN FOR STREET IMPROVEMENT
AT 1.2 MILLION. >> OKAY. THANK YOU. >> A COUPLE QUESTIONS. WHAT THE 3% RATE? OF COURSE, I SEE 3% EFFECTIVE 1.8. I'M STILL TRYING TO WRAP MY HEAD AROUND THAT, BUT A 3% BASE RATE INCREASE TRANSLATES INTO WHAT AMOUNT OF REVENUE, WHAT AMOUNT.
ADDITIONAL CASH. >> LOOKS LIKE ABOUT FOUR, 4.5 MILLION. YEAH.
>> SO A PERCENT IS ABOUT 1.3 MILLION. IS THAT RIGHT? OR A LITTLE MORE THAN THAT. THREE
AND A HALF. YEAH, A LITTLE OVER ONE. >> TONY, POINT TO THE GENERAL MANAGER. YES THAT'S CORRECT. I JUST REMEMBER IN THE ASSUMPTIONS THERE'S A 3% GROWTH AS WELL. THAT ALSO KIND OF ADDS TO TO GET TO HER NUMBER. THAT'S ABOUT 1%, ABOUT $1 MILLION. BUT THEN YOU ADD ABOUT A 3% GROWTH THAT WE'RE ASSUMING IN BASE RATES.
>> OKAY. >> YEAH. SO HER NUMBER OF FOUR AND A HALF IS, IS PRETTY
ACCURATE. >> OKAY. WELL, I'VE GOT YOU, TONY, BECAUSE THE. THE, THE 3%, I THINK, CORRECT ME IF I'M WRONG, HAS BEEN PRIMARILY TO GET US TO A FUND BALANCE LEVEL THAT WE FEEL MORE COMFORTABLE WITH. IS THAT PART OF THAT RATIONALE?
>> SO, SO THE FUND BALANCE POLICY THAT WE HAVE IS 46% OF BUDGETED EXPENSES. THAT WAS SET AFTER WINTER STORM URI, THE ACTUAL DOLLAR FIGURE THAT WAS DISCUSSED AT THAT TIME BY THE COUNCIL, BASED ON THE AMOUNT OF EXPENSES THAT WE HAD DURING URI, WAS THE $200 MILLION, RIGHT. SO $200 MILLION HAS REALLY KIND OF BEEN THE TARGET. NOW THAT $200 MILLION, AGAIN, WAS FROM 2021.
CERTAINLY THERE'S BEEN A WHOLE LOT OF INFLATIONARY PRESSURES AND AND OTHER POTENTIAL NEEDS AS WELL, BASED ON THE CHANGES IN THE ERCOT MARKET. EVALUATING THAT POLICY IS SOMETHING THAT WE'RE GOING THROUGH WITH WITH THE FINANCE DEPARTMENT, CITY MANAGER'S OFFICE AS WELL.
>> OKAY. AND I DON'T KNOW IF IT'D BE FOR FOR THIS BUDGET YEAR, BUT I'D LIKE TO HAVE SOME CONVERSATION ABOUT THAT BECAUSE I KNOW IT WAS SET BACK OFF OF A REALLY CATASTROPHIC EVENT. AND YOU KNOW WHAT THE RATIONALE WAS FOR THAT MOVING FORWARD. DO WE WANT TO IS THAT THE TARGET WE STILL WANT TO MAINTAIN? IS THAT TARGET BASED UPON THE PROJECTED OR IS IT BASED ON ACTUALS? BECAUSE I KNOW SOMETIMES THE EXPENSES ON THE ESTIMATE FOR THE ELECTRIC FUND COME IN LESS THAN WHAT IS BUDGETED. AND SO I THINK IT'D BE GOOD TO HAVE A CONVERSATION ABOUT, YOU KNOW, REVISIT IT DOESN'T MEAN NECESSARILY CHANGE IT OR DON'T CHANGE IT. BUT I THINK, YOU KNOW, I THINK THAT'S DRIVING SOME OF THIS. AND IF IT'S SOMETHING THAT WE CAN LOOK AT AND FEEL COMFORTABLE WITH, I MEAN, CERTAINLY ONE WANT TO MAINTAIN THAT TO WHERE WE, WE GIVE THE CITIZENS THE BEST ABILITY TO COVER THINGS THAT HAPPEN. BUT I THINK THAT'D BE A
CONVERSATION WORTH HAVING. >> AND THAT WAS THE RATIONALE FROM THE COUNCIL AT THE TIME TO SET IT AS A PERCENTAGE OF BUDGET EXPENSES VERSUS A HARD DOLLAR AMOUNT.
>> SURE, SURE. OKAY. YES. COUNCIL MEMBER HOLLAND. >> THANK YOU. FOLLOWING ON THE MAYOR'S QUESTION, WHAT WILL THE AVERAGE, THE THREE AND A HALF OR ONE AND A HALF? WHAT WILL
THAT LOOK LIKE ON THE AVERAGE CUSTOMER'S UTILITY BILL? >> DO YOU HAVE THAT IN A FEW
SLIDES. >> I SEE THANK YOU. >> COUNCILMEMBER MORE.
>> I JUST WANTED TO SUPPORT WHAT YOU WERE SAYING ABOUT LOOKING, YOU KNOW, REVISITING IT JUST TO SEE BECAUSE I'M SURE THE RISKS HAVE CHANGED, THE ENVIRONMENT HAS CHANGED AND ALL OF THAT IN TERMS BECAUSE THIS IS REALLY JUST RISK PREVENTION, THIS, THIS FUND BALANCE. SO I DEFINITELY SUPPORT VISITING THAT AND KIND OF SEEING WHAT IT LOOKS LIKE TODAY.
>> YES. MAYOR PRO TEM. >> THE REVENUE, THE PRELIMINARY BUDGET FOR THE REVENUE 500
[02:55:04]
MILLION. WHAT WHAT DID THAT ORIGINALLY START OFF AT? BECAUSE THAT'S A DIFFERENTNUMBER NOW. CORRECT. >> I THINK TONY BROUGHT SOME OLDER MATERIALS.
>> I LEFT THE ONE MATERIAL OVER THERE, BUT I THINK ON ON THE 21ST IT WAS ABOUT 511 MILLION.
SO IT'S BEEN ABOUT $11 MILLION DIFFERENCE BASED ON WHAT WE ORIGINALLY PRESENTED AND WHAT YOU'RE SEEING NOW TODAY, THERE HAS BEEN AN ADJUSTMENT THERE TO PURCHASE POWER.
>> YEAH. >> STATEMENT ON THAT, I APPRECIATE THAT. I APPRECIATE BEING A LITTLE BIT MORE CONSERVATIVE WITH THOSE ESTIMATES. I KNOW LAST TIME WE ALL TALKED ABOUT IT PUBLICLY, ONE OF THE THINGS THAT YOU HAD MENTIONED WAS WE'RE ALWAYS GOING TO DO OUR BEST TO ESTIMATE AND IT'S GOING TO FLUCTUATE. YOU KNOW, IT'S A IT'S A HARD TARGET. I'M WONDERING IF, IF YOU HAVE ANY MORE INFORMATION THAT YOU CAN PROVIDE ON OPTIMISM LEVELS THAT YOU HAVE ON THAT NUMBER FOR THIS UPCOMING YEAR. I KNOW
THAT'S A TOTALLY UNFAIR QUESTION. >> I APPRECIATE THAT, AND I THINK YOUR JOB IS A LOT HARDER THAN MINE, COUNCILMEMBER. YEAH, I THINK WE'RE VERY CONFIDENT IN THESE NUMBERS. CERTAINLY, YOU KNOW, ALONG WITH THE CITY MANAGER'S OFFICE, THIS IS WHAT WE'RE PROPOSING. YOU KNOW, REMEMBER THESE A LOT OF THESE NUMBERS WERE ACTUALLY DEVELOPED BACK IN MARCH. AND SO EVEN SINCE MARCH, THERE'S BEEN A LOT OF MOVEMENT YEAR TO YEAR.
THERE'S A LOT OF MOVEMENT. NEXT YEAR WHEN WE'RE BACK HERE IN FRONT OF YOU, NUMBERS WILL LOOK DIFFERENT, RIGHT? AND THERE'S STILL A LOT OF CHANGES GOING ON IN THE ELECTRIC MARKET THAT THAT ARE DRIVING A LOT OF DIFFERENT CHANGES, UNFORTUNATELY, OR FORTUNATELY, THESE ARE BIG NUMBERS. AND, AND EVEN A 1% SHIFT CHANGES A LOT OF THINGS. AND SO, BUT WE'RE AS CONFIDENT TODAY IN THESE NUMBERS AS WE CAN POSSIBLY BE. AND GLAD TO RECOMMEND THIS
BUDGET. >> YES. COUNCILMEMBER FAIRY. >> JUST WANTING TO MAKE SURE I'M UNDERSTANDING THIS. RIGHT. SO I SEE THE ACTUALS FOR 2425 FOR PURCHASED POWER, 77.8 MILLION. I'M SEEING WHAT COUNCIL APPROVED OR WHAT WE BUDGETED FOR, 287.7 MILLION FOR 2526. THE ESTIMATE IS THE ACTUALS, RIGHT. SO AM I. AM I INCORRECT IN SAYING LIKE, WHAT
WE'RE ACTUALLY SEEING IS. >> 125.6 COUNCILMEMBER THAT NUMBER IS STILL AN ESTIMATE.
AND UNLIKE SOME OF THE OTHER FUNDS THAT WE HAVE, THIS PARTICULAR FUND, THE MAJORITY OF THE REVENUES AND EXPENSES ACTUALLY HAPPEN IN THE SUMMER. AND SO THERE'S STILL A POTENTIAL BIG SHIFT THAT CAN HAPPEN FOR THE REMAINING PART OF AUGUST AND EVEN INTO SEPTEMBER, BECAUSE THAT'S LITERALLY THE THE HOTTEST PART OF THE YEAR WHERE WE SEE THE MAJORITY OF OUR EXPENSES, LARGEST EXPENSES BEING PURCHASE POWER.
>> I'M JUST YEAH, I IT'S LIKE A 57% DIFFERENCE. SO I HEAR YOU. I GUESS I'M JUST WONDERING WHEN WE WHAT, WHEN WE HAVE MONEY LEFT OVER RIGHT. LET'S SAY IT COMES IN AT 200 MILLION. WHAT'S THE 87 MILLION GOING TO WHERE DOES THAT WHERE DOES THAT MONEY GO INTO THE FUND BALANCE
DIRECTLY? DOES IT GO PARTLY TO WHERE DOES IT GO? >> YEAH. SO SO IF IF THE EXPENSES DON'T MATERIALIZE, THERE IS NO REVENUE. AND SO THERE WOULDN'T BE AN EXCESS.
AND SO WHAT WE'RE PROJECTING FOR THE CURRENT YEAR IS ACTUALLY WE'LL HAVE A NET
INCOME LOSS OF $2.3 MILLION. >> HEARD. YES. OKAY. OKAY. >> SO AND WHEN THE ESTIMATE, OF COURSE, THEY ALL OF THE PRESENTATIONS WE HAVE HAVE THIS TWO, 220 2526 ESTIMATE COLUMN AT WHAT, WHAT IS THE BASELINE? YOU TOOK SOME ACTUAL NUMBER AND THEN ESTIMATE IT WAS THAT LAST MONTH? WAS IT WHEN WHEN WAS THE BASE NUMBER UNLESS WE'RE ON ELECTRIC. SO WHAT WHAT IS THE BASE NUMBER THAT YOU USE AS AN ACTUAL TO BUILD THE ESTIMATE. WHEN IS THAT USUALLY DONE.
>> SO USUALLY FOR THE FOR THE UTILITIES WE START THAT IN JANUARY. AND SO WE'RE CERTAINLY LOOKING AT WHERE THE PRIOR YEAR ENDED. WE'RE ALSO SOMETIMES LOOKING AS FAR AS BACK TEN YEARS, RIGHT. THERE'S SOME AVERAGES THAT WE LOOK AT LIKE FOR EXAMPLE, HERE, THE $77 MILLION THAT YOU'RE SEEING IN ACTUALS FOR 24, 25. IF YOU LOOK AT A TEN YEAR HISTORY, THAT TEN YEAR HISTORY IS CLOSER TO 108 MILLION, RIGHT? AND THERE'S A LOT OF VARIATION THAT HAPPENS YEAR TO YEAR. AGAIN, THE BIGGEST DRIVER HERE IS PURCHASE POWER AND WEATHER HAS A HUGE IMPACT. SO AGAIN WE LOOK AT AN ASSORTMENT OF EXPENSES. BUT IN JANUARY YOU'RE PROBABLY LOOKING AT EXPENSES JUST FOR THAT FIRST QUARTER OF THE YEAR. AND YOU'RE ALSO LOOKING AT THE PREVIOUS YEARS TO SEE KIND OF TO COME UP WITH A, YOU KNOW, WITH AN EDUCATED GUESS AS TO WHAT THAT
NUMBER WILL BE GOING FORWARD. >> OKAY. SO GO AHEAD, MADAM CITY MANAGER.
>> WELL, I WAS GOING TO SAY FOR FOR PERSONNEL, WE'RE UPDATING IT FOR EVERY PAY PERIOD. SO
[03:00:03]
EVERY TIME WE HAVE AN ACTUAL PAY PERIOD, WE'RE UPDATING THAT THAT ESTIMATE AS WE GET CLOSER.SO I THINK THESE THE PERSONNEL ESTIMATES THAT YOU'RE SEEING ARE AS OF THE END OF JULY, IS,
IS WHEN THEY WERE, THEY WERE UPDATED. >> OKAY. SO AND MAYBE THIS, THESE FUNDS, UTILITY FUNDS ARE A LITTLE DIFFERENT. I WOULD, I WOULD ASK IN THE FUTURE, BECAUSE I KNOW YOU COULD TELL ME PROBABLY TOMORROW THAT, HEY, AS OF JUNE THE 30TH, THIS IS HOW MUCH WE'VE PAID FOR PURCHASE POWER. I DON'T KNOW WHAT THE LAG IS FOR INVOICING FROM ERCOT AND SO FORTH AND SO ON, BUT I WOULD, I WOULD I WOULD LIKE TO IF THESE ARE ESTIMATES BASED UPON JANUARY NUMBERS, THAT'S A PRETTY I DON'T WANT TO SAY I THINK WE CAN HAVE MORE ACCURATE NUMBERS IN THE. MOVING FORWARD. DO YOU SEE WHAT I'M SAYING? I MEAN, WHAT I THOUGHT I HEARD YOU SAY WAS WE SORT OF CALCULATE THIS NUMBER STARTING IN JANUARY, BUT
ARE YOU USING ACTUAL NUMBERS UP TO WHAT DATE. >> YEAH. SO SO AS WE'RE GOING THROUGH THE PROCESS AND THE FIRST ITERATION OF THIS FORECAST REALLY KIND OF COMES OUT IN MARCH, APRIL TIME FRAME, WE DO ANOTHER KIND OF SANITY CHECK OF NUMBERS BASED ON THAT POINT IN TIME. NOW THAT JUST SAID, SO JUNE NUMBERS FOR THE ENTIRE CITY ARE COMING OUT SHORTLY. AND OBVIOUSLY WE'VE HAD THEM FOR A WHILE. AND WE LOOK AT IT, I CAN TELL YOU FOR FOR DME, AS OF JUNE, WE'RE LOOKING AT ABOUT $8 MILLION LOSS AT THAT POINT IN TIME. BUT AGAIN, YOU STILL HAVE JULY, AUGUST AND SEPTEMBER THAT WILL ADJUST THAT NUMBER AS WELL,
RIGHT? >> YEAH. OKAY. AND JUST FOR FUTURE REFERENCE, AND I DON'T KNOW, I DON'T THINK IT'S REALLY FOR THIS BUDGET DISCUSSION, BUT I KNOW LAST YEAR WHEN THE PRESENTATION WAS MADE ABOUT IN THE SUMMER ABOUT RENEWABLE ENERGY AND RENEWABLE ENERGY CREDITS AND HOW WE HANDLE THOSE. AND WHAT I KNOW YOU'RE SMILING. I'M SORRY. I'M SORRY, BUT I MEAN, IT WAS THAT, YOU KNOW, THE THE COMMENT WAS, WELL, ARE WE LEAVING SOME MONEY ON THE TABLE? NOT BECAUSE OF HOW WE PROCESSING THOSE. SO I WOULD LIKE TO HAVE A COMPREHENSIVE CONVERSATION. I THINK IT'S COMING IN ONE OF YOUR IN A FUTURE YES.
>> CITY MANAGER'S OFFICE NOW TO SCHEDULE THAT AND AND THAT THE ISSUE OF THE IRP AND THEN RENEWABLE RESOURCE PLAN, ALL THAT WILL BE COMING BACK TO THE COUNCIL HERE IN THE NEXT FEW
MONTHS. >> OKAY. IF. I HOPE THAT PART OF THAT IS IF WE CAN IDENTIFY AT LEAST WITH SOME KIND OF GOOD ESTIMATE, IF WE'RE PAYING MORE FOR OUR ELECTRICITY BASED UPON OUR BRAND OF 100% RENEWABLE, OR WE'RE STILL GETTING THAT LOW COST AS WE DID WHEN WE WHEN WE STARTED IT BACK IN 2018, WHEN WE IMPLEMENTED TO SEE TO MAKE SURE THAT ARE WE LEAVING ANYTHING ON THE TABLE THAT WE DON'T HAVE TO THAT DOESN'T AFFECT THAT BRAND? OR IF WE ARE PAYING A LITTLE BIT MORE, HOW MUCH IS THAT SO THAT THE COMMUNITY CAN DECIDE, OKAY, IS THIS IS THIS WORTH IT? SO I JUST WOULD REALLY APPRECIATE A COMPREHENSIVE CONVERSATION THAT REGARD. YES, SIR. THANK YOU VERY MUCH. ALL RIGHT. ANY OTHER QUESTIONS FOR THE ELECTRIC. WE DO HAVE A CLOSED SESSION SCHEDULED AT THE END OF THE BUDGET PRESENTATION. AND I DO HAVE SOME QUESTIONS THAT PROBABLY WOULD BE MORE APPROPRIATE FOR CLOSED SESSION.
SO WE COULD EITHER DO THAT NOW OR WE COULD WAIT. YOU ALL JUST WANT TO WAIT TILL WE GET TO THE BUDGET PRESENTATION OR DO YOU WANT TO I IF WE DO CLOSED SESSION NOW WE GOT TO KICK EVERYBODY OUT AND BRING EVERYBODY BACK IN. SO I THINK WE'RE GETTING CLOSE TO WRAPPING THIS UP ANYWAY. SO LET'S JUST GO AHEAD AND I'LL JUST WE'LL HOLD THE CLOSED SESSION TILL
THE END OF THE MEETING. OKAY. ALL RIGHT. THANK YOU. >> ALL RIGHT. SO NEXT WE'RE GOING TO LOOK AT SOLID WASTE, WHICH PROVIDES FUNDING FOR RELIABLE WASTE COLLECTION, RECYCLING AND DISPOSAL SERVICES. SOLID WASTE FUND ASSUMES NO RATE INCREASE FOR FISCAL YEAR 2027, EVEN THOUGH SERVICE DEMANDS CONTINUE TO RISE. THIS IS POSSIBLE BECAUSE OF CAREFUL FINANCIAL PLANNING AND EFFICIENCIES WITHIN THAT DEPARTMENT'S OPERATIONS. ONE OPERATIONAL CHANGE THIS YEAR IS THAT SPECIAL WASTE RECYCLING PERMIT FEES WILL MOVE FROM THE WATER WASTEWATER ORDINANCE TO SOLID WASTE. THIS REALIGNMENT ENSURES THAT THE FEES ARE PLACED IN THE CORRECT FUND BASED ON THE SERVICE BEING PROVIDED. THERE ARE SEVERAL MAJOR HIGHLIGHTS FOR THE SOLID WASTE FUND. THEY HAVE $1 MILLION SET ASIDE FOR LAND ACQUISITION FOR THE TRANSFER STATION. THEY ARE CASH FUNDING VEHICLES TO REDUCE FUTURE DEBT ISSUANCES, AND THEN UP TO A MILLION IN NEW REVENUES IS IS ANTICIPATED FOR LANDFILL NATURAL GAS SALES. ALSO INCLUDED IN THIS. WHILE WE DID NOT ENTERTAIN SUPPLEMENTAL REQUESTS, FOR THE MOST PART AS PART OF THIS BUDGET CYCLE AND REALITY, SOLID WASTE WILL NEED TO ADD SEVEN FTE JUST TO MAINTAIN THEIR CURRENT LEVEL OF SERVICE, AND THAT IS BECAUSE OF GROWTH DEMANDS IN BOTH THE RESIDENTIAL AND COMMERCIAL COLLECTIONS. SOLID WASTE HAS 137 FTE, WITH THOSE SEVEN ADDED. THEY ARE FOCUSED ON LONG TERM PLANNING, INCLUDING ROUTE
[03:05:04]
MODELING, ORGANICS EXPANSION, THAT TRANSFER STATION DEVELOPMENT THAT I MENTIONED, AND THEN NEGOTIATING FUTURE RECYCLING PROCESSING CONTRACTS. SO HERE IS A LOOK AT THE PRO FORMA FOR SOLID WASTE. YOU'LL NOTICE A SIGNIFICANT USE OF RESERVES IN FISCAL YEAR 2027 OF ABOUT $8.26 MILLION. THIS IS INTENTIONAL AND IT IS PLANNED. THEY ARE AGAIN USING CASH FUNDING FOR VEHICLES SUPPORTING LAND ACQUISITION, AND THEN THOSE MAJOR INFRASTRUCTURE INVESTMENTS USING RESERVES THIS WAY IS GOING TO HELP THEM TO AVOID SPIKES IN RATES IN THE FUTURE, KEEP THEIR DEBT SERVICE MANAGEABLE. AND EVEN WITH THE USE OF RESERVE, THE FUND REMAINS WITHIN POLICY TARGETS FOR BALANCE REQUIREMENTS. THEY CONTINUE TO HAVE A STRONG FINANCIAL FOUNDATION WITH MINIMAL INCREASES INCLUDED IN THE NEXT FEW YEARS.>> YES. COUNCIL MEMBER RUMOHR. SORRY. >> WAY TO GO. SOLID WASTE. I HAVE JUST ONE QUESTION. IN MOST OF THE PRO FORMAS WE SEE BASE RATE INCREASE OR RATE INCREASE ON THIS ONE. IT LOOKS LIKE THAT LINE IS BEING CALLED REVENUE SUFFICIENCY REQUIREMENT. DOES
THIS WORK DIFFERENTLY OR ARE WE JUST USING DIFFERENT WORDS HERE? >> I THOUGHT THAT WAS SUCH AN INTERESTING QUESTION BECAUSE WE LOOK AT THAT LINE AND WE KNOW THE NUMBERS. AND I WILL SAY, DON'T NECESSARILY PAY ATTENTION TO THE WORDS. BUT IN REALITY, I WOULD SAY THAT THIS IS THE BETTER PHRASING BECAUSE EVEN ON THE OTHERS WHERE WE SAY WE NEED A 3% INCREASE, WE NEED A 9%, A 5%, WHATEVER THAT NUMBER MAY BE. THAT DOESN'T NECESSARILY MEAN THAT EVERY RATE FOR THAT FUND OR, YOU KNOW, FOR THAT SERVICE GOES UP THAT EXACT PERCENT. BECAUSE IN REALITY, WE MAY LOOK AT OUR MODELING AND SEE THAT WE ARE UNDER RECOVERY OR OVER RECOVERING, AND WE MAY NEED TO JUST CHANGE ONE CUSTOMER CLASS. SO I ACTUALLY PREFER THE WAY THAT THIS IS STATED. SO I LIKE THAT YOU ASKED THAT QUESTION BECAUSE HONESTLY WE JUST LOOKED AT THE PERCENTAGE INCREASES AND
NOT THE WORDINGS THAT WORDING THAT WE WERE USING. >> OKAY.
>> THANK YOU. >> OKAY. >> OKAY.
>> ALL RIGHT. SO THIS ANSWERS THE QUESTION ABOUT THAT IMPACT. THIS GIVES A SNAPSHOT ON WHAT THOSE PROPOSED UTILITY RATE CHANGES TRANSLATE INTO IN TERMS OF MONTHLY UTILITY BILLS. THE OVERALL CHANGE TO THE AVERAGE RESIDENTIAL CUSTOMER WILL BE $8.15 PER MONTH. THAT IS FACTORING IN TWO PARTS FROM SOLID WASTE, ONE TRASH, ONE RECYCLING 1000 KILOWATT HOURS FOR RESIDENTIAL, 9000 GALLONS OF WATER, 6000 GALLONS WASTEWATER, AND 1500FT■!S FOR DRAINAGE. THE TYPICAL WELL, I WON'T CALL THIS A TYPICAL COMMERCIAL BILL. IN ALL HONESTY, THIS IS A SMALL BUSINESS. SO WHEN WE'RE LOOKING AT THE IMPACT ON A SMALL BUSINESS, IT WOULD BE $12.34 PER MONTH INCREASE IN WHAT THEY WOULD EXPERIENCE WITH THESE RATE
INCREASES. ANY QUESTIONS HERE. >> ANY QUESTIONS. >> NO.
>> ALL RIGHT. >> ALL RIGHT. SO NEXT WE'RE GOING TO LOOK AT THE AIRPORT FUND WHICH PROVIDES AVIATION SERVICES FOR DENTON AND THE BROADER REGION. THE AIRPORT FUND ASSUMES NO INCREASES IN FEES. THE BUDGET ALSO INCLUDES $100,000 IN REVENUE FUNDED RUNWAY SWEEPER. SO THIS PURCHASE WILL DIRECTLY IMPROVE SAFETY AND OPERATIONS OF THE AIRFIELD. THE AIRPORT HAS SEVEN FTE, AND THEIR PRIORITIES FOR THIS NEXT YEAR INCLUDE ENSURING REVENUE SUFFICIENCY AND OPERATIONAL RELIABILITY, OVERSEEING THE TAXI LANE RECONSTRUCTION AND THEN UPDATING AIRPORT REGULATIONS. HERE IS A LOOK AT THEIR PROFORMA. THE AIRPORT, I WILL SAY NOW, NOW REMAINS FINANCIALLY STABLE, SUPPORTED BY A STEADY OPERATING REVENUE PLAN. CAPITAL INVESTMENTS. YOU'LL SEE THAT THIS FUNDS BALANCE REMAINS HEALTHY AND COVERS ITS MAJOR EXPENSES SUCH AS THE AIRFIELD IMPROVEMENTS.
DOING GREAT. THIS WAS A FUND THAT, IF YOU REMEMBER A FEW YEARS AGO, WAS NOT SELF SELF-SUSTAINING, AND NOW IT IS. SO WE WANT TO POINT THAT OUT. ALL RIGHT. SO WE'RE GOING TO DO A ROOM SWITCH. WE ARE GOING TO BE COVERING THE INTERNAL SERVICES FUNDS NEXT. SO WE'LL
GIVE EVERYONE THE OPPORTUNITY. OH. OKAY. >> WHAT ARE WE DOING.
>> OKAY. DO YOU HAVE A SLIDE 50 IN YOUR BOOK THAT IS. >> YES.
>> IT IS THAT OKAY? I'M AFRAID WE HAVE MISSED CUSTOMER SERVICE. I KNOW THAT YOU HEARD ABOUT THEM BEFORE. SO LET ME JUST TALK TO YOU ABOUT A LITTLE BIT ABOUT CUSTOMER SERVICE. IS IT?
[03:10:01]
I'M SO USED TO THEM PRESENTING THEM WITH THE UTILITIES. OKAY. IT'S FINE, IT'S FINE. ALL RIGHT.NOW WE'RE GOING TO SWITCH. I'M GOING TO GET SOME WATER. I'M SO USED TO PRESENTING THEM WITH
UTILITIES. I'M LIKE, OH MY GOSH, WE HAVE LEFT THEM OUT. OKAY. >> WHO'S PRESENTING?
>> SO WE'LL HAVE THE INTERNAL SERVICES FUNDS INCLUDING CUSTOMER SERVICE COME INTO THE
ROOM. >> OH WELL I SHOULD YEAH. I WANT.
>> TO GET AROUND SO BAD. OKAY. IT'S THERE'S TOO MUCH. >> YOU JUST BRING ME ONE. YEAH.
>> JUST ONE. I WANT TO SHOW. RIGHT. RIGHT. RIGHT NOW. >> IT'S FINE.
SO ZERO. DO I HAVE TO WRITE IT? THE ITEM WAS PRESENTED IN THIS. REALLY GOOD STUFF.
YEAH. >> ALL RIGHT, ALL RIGHT. THANK YOU. SO NEXT WE'LL TURN TO THE INTERNAL SERVICES FUND. SO BEFORE WE MOVE ON TO THE INDIVIDUAL DEPARTMENTS THAT WILL BE HIGHLIGHTING AS PART OF THIS OVERVIEW. JUST A REMINDER, THESE DEPARTMENTS ARE FUNDED PRIMARILY BASED ON COST ALLOCATIONS TO THE DEPARTMENTS THAT THEY SUPPORT. AND NOW HERE IS CUSTOMER SERVICE. SO WE'LL START WITH CUSTOMER SERVICE WHICH OPERATES UNDER DME AND IS RESPONSIBLE FOR DENTON 311 UTILITY BILLING, PAYMENT PROCESSING AND THEN COORDINATING RESPONSES ACROSS DEPARTMENTS THROUGH 311 TO ASSIST WITH RESIDENT INQUIRIES.
CUSTOMER SERVICE HAS 55.5 FTES. A KEY HIGHLIGHT THIS YEAR IS THE IMPLEMENTATION OF A FEE THAT HELPS RECOVER COSTS ASSOCIATED WITH ACCEPTING CREDIT AND DEBIT CARD PAYMENTS.
OH, THAT'S ACTUALLY IT. ANY QUESTIONS FOR CUSTOMER SERVICE? >> YES. COUNCIL MEMBER RUMOHR.
>> THAT FEE THAT YOU JUST MENTIONED, THAT REPRESENTS ROUGHLY HOW MUCH IN, I GUESS,
BUDGET SAVINGS. >> THAT IS THE REDUCTION THAT YOU SEE IN OPERATIONS THAT IS WITHIN THAT CATEGORY. I KNOW EARLY ESTIMATES WERE ABOUT $2 MILLION. THAT WOULD BE OFFSET
ABOUT WITH ANY OTHER CHANGES IN THE OPERATIONS CATEGORY. >> OKAY. SO ROUGHLY 2 MILLION.
YES. FOR THAT. OKAY. THANK YOU. >> YES. COUNCILMEMBER HOLLAND. >> I WONDER IF YOU IF YOU KNOW OF ANY FEEDBACK FROM THE ANNOUNCEMENT OF THE CREDIT CARD FEE.
>> I'LL HAVE TONY SHARE ANY INFORMATION HE MAY HAVE ON THAT. >> TONY DME GENERAL MANAGER I THINK SOME OF THE FEEDBACK THAT WE'VE GOTTEN IS REALLY, HOW CAN I AVOID THIS CHARGE? AND SO WE'RE TRYING TO EDUCATE OUR CUSTOMERS ON HOW, HOW THEY CAN TAKE ADVANTAGE OF OTHER FORMS OF PAYMENT THAT THAT DON'T INVOLVE CREDIT CARDS. BUT WE'VE ALSO HEARD SOME, YOU KNOW, SOME CONCERNS, SOME COMPLAINTS ABOUT THE FACT THAT NOW THEY'RE GOING TO HAVE TO PICK UP THIS COST.
BUT JUST AS A REMINDER, THIS COST HAS BEEN THERE AND IT'S BEEN PASSED ON TO ALL OTHER RATEPAYERS THROUGH OUR THROUGH OUR NORMAL RATES AND CHARGES THAT WE THAT WE CHARGE AT ALL
THE UTILITIES. >> I EXPECTED SOME FEEDBACK. AND PEOPLE WHO ARE UNHAPPY WITH
[03:15:02]
IT ARE GOING TO BE THE ONES THAT THAT THAT THAT CALL. BUT I THINK THIS IS A PROPER MOVE.THANK YOU. >> ANY OTHER QUESTIONS HERE? OH, YES, COUNCILMAN PERRY.
>> SO THE WAY TO AVOID THAT FEE IS TO BE IN PERSON AND PAY. IS THAT CORRECT OR. OKAY, CASH.
CAN YOU EXPLAIN THE COST AVOIDANCE OPPORTUNITY? >> YEAH. SO ABSOLUTELY. I THINK IF YOU COME IN PERSON, WE CAN CHARGE THAT. I THINK NORMALLY WHAT WE'RE TRYING TO DRIVE FOLKS TO IS AUTOMATIC BANK DRAFTS. THOSE ARE JUST NORMAL. ACH, THAT'S A WAY TO ALSO TO AVOID THAT. YES SIR. AND THERE'S OBVIOUSLY ALWAYS THE THE CASH OPPORTUNITY. AND WE OFFER A VARIETY OF DIFFERENT WAYS THAT YOU CAN MAKE THAT PAYMENT IN PERSON AT THE KIOSK
AS WELL. >> ANYBODY ELSE? OKAY. ALL RIGHT.
>> ALL RIGHT. NEXT WE'LL MOVE ON TO THE HEALTH AND HEALTH FUND, WHICH MANAGES MEDICAL, DENTAL, VISION, LIFE, DISABILITY AND RELATED INSURANCE COSTS FOR BOTH OUR EMPLOYEES AND OUR RETIREES. MAJOR HIGHLIGHT THIS YEAR IS A NEARLY 5% INCREASE IN THE EMPLOYER CONTRIBUTION, WHICH THE CITY IS ABSORBING SO THAT EMPLOYEES DO NOT HAVE TO PAY HIGHER PREMIUMS. WE ARE ALSO SUBSIDIZING THE BENEFIT FOR RETIREES, SO THEY TOO DO NOT BEAR THE FULL COST OF THE THE INCREASE, REVENUES AND EXPENDITURES INCREASED FROM FOUR 43.9 MILLION TO 46.6 MILLION, DRIVEN MAINLY BY CHANGES IN MEDICAL INSURANCE
EXPENSES. >> ANY QUESTIONS? YES. COUNCIL MEMBER RUMOHR.
>> CAN YOU HELP ME UNDERSTAND THE SORT OF THE PATHWAY OF WHERE THE MONEY TRAVELS THAT ULTIMATELY RESULTS IN THE 43 PROPOSING 46 MILLION FOR EMPLOYEE INSURANCE? DOES IT TRAVEL THROUGH THE DEPARTMENTS? IT GOES INTO GENERAL FUND AND THEN INTO THIS FUND? LIKE
WHAT'S THAT PATHWAY? DOES THAT MAKE SENSE? WHAT I'M ASKING? >> IT TRAVELS THROUGH THE DEPARTMENTS. THEY HAVE LINE ITEM BUDGETS FOR INSURANCE, AND IT TRAVELS FROM THOSE BUDGETS
INTO THE FUND. >> OKAY. AND THEN THEIR PRO FORMAS, IT WOULD PROBABLY SHOW
UP AS ONE OF THE INTER FUND TRANSFERS. >> IT WOULD BE UNDER PERSONNEL
PERSONNEL. >> OKAY. THANK YOU. >> OKAY.
>> ALL RIGHT. >> THIS SLIDE COVERS FACILITY MANAGEMENT, WHICH IS THE TEAM RESPONSIBLE FOR MAINTAINING AND REPAIRING CITY FACILITIES. A COUPLE OF HIGHLIGHTS WE WANT TO NOTE IS THAT THE DEPARTMENT THIS IS THE ONLY OTHER EXCEPTION TO THE NO NEW POSITIONS. THIS DEPARTMENT IS ADDING ONE NEW HVAC TECHNICIAN, BUT THAT IS BEING OFFSET BY A REDUCTION IN CONTRACTUAL SERVICES. THEY FEEL THAT THEY CAN BRING THAT SERVICE IN-HOUSE AND PROVIDE BETTER FOR THE DEPARTMENTS. WE'RE REDUCING SPENDING ON THE CITYWIDE CONTRACT FOR JANITORIAL SERVICES AND LOOKING TO INCREASE EFFICIENCIES AROUND THAT SERVICE. AND THEN YOU HAD HEARD EARLIER ABOUT THE $1.4 MILLION GOING TOWARDS CAPITAL MAINTENANCE. IT IS ANTICIPATED THAT THAT WILL COME THROUGH THIS FUND IN ORDER TO CASH FUND MAINTENANCE NEEDS. FACILITIES MANAGEMENT HAS 24 FTE, AND THEIR WORK DIRECTLY AFFECTS HOW WELL OUR BUILDINGS FUNCTION ON A DAY TO DAY BASIS. ANY QUESTIONS HERE?
>> YES. COUNCILMEMBER HOLLAND. >> DOES DOES THE CITY NOT DO I RECALL A CONTRACT WITH A LOCAL
VENDOR TO PROVIDE HVAC SERVICES? >> I'M GOING TO HAVE TOM KRAMER COME UP AND ANSWER YOUR
QUESTION. >> GOOD AFTERNOON. TOM GRIMMER, DIRECTOR OF FACILITIES MANAGEMENT AND FLEET SERVICES. SIR, TO ANSWER YOUR QUESTION, YES, WE DO HAVE A LOCAL VENDOR THAT PROVIDES CONTRACTUAL SERVICES FOR THE CITY OF DENTON. FOR HVAC. HOWEVER, THEIR HOURLY RATE IS 3 TO 4 TIMES HIGHER THAN AN HOURLY RATE WE CAN PROVIDE IN-HOUSE. AND WE'RE ALSO AT THE MERCY OF THEIR SCHEDULING OFTENTIMES. SO THIS IN-HOUSE FTE WOULD SUPPORT THAT IMMEDIATE SERVICE, NEED PREVENTATIVE MAINTENANCE AND THE THINGS THAT ARE COSTING US MORE GOING OUTSIDE AND CONTRACTUAL SERVICES. HOWEVER, WE WILL STILL MAINTAIN THAT CONTRACT FOR LARGER ITEMS OR IF THERE'S ADDITIONAL WORK THAT'S OUTSIDE OF OUR SCOPE.
>> THAT ALL MAKES PERFECT SENSE, AND I'D LIKE TO SEE, IF POSSIBLE, I'D LIKE TO SEE THIS
EXPANDED TO REDUCE THAT. >> YES, SIR. >> THANK YOU. OF COURSE.
>> ANY OTHER QUESTIONS? NO. THANK YOU. >> ALL RIGHT. SO NEXT WE'LL LOOK AT FLEET SERVICES RESPONSIBLE FOR MAINTAINING AND REPAIRING ALL CITY OWNED VEHICLES. THIS YEAR'S BUDGET ANTICIPATES HIGHER FUEL COSTS AS MORE DEPARTMENTS SHIFT FULLY TO CITY FUELING STATIONS, REDUCING RELIANCE ON OUTDOOR VENDORS. FLEET IS ALSO CONTINUING TOWARDS CASH FUNDING VEHICLES. AGAIN, YOU SEE THE OTHER 700,000 OF THAT 1.4 MILLION ANTICIPATED TO BE ALLOCATED TO THIS FUND IN ORDER TO CASH FUND VEHICLE
[03:20:02]
REPLACEMENTS. FLEET SERVICES HAS 31 FTE, EACH PLAYING A ROLE IN KEEPING OUR FLEET MOVING.ANY QUESTIONS THERE? >> REAL QUICK, WHERE IT SAYS IN THE HIGHLIGHTS WORKS TOWARDS ALL VEHICLES USING CITY GAS STATIONS AND DECREASING THE USE OF EXTERNAL FUEL FUEL STATIONS.
HOW MANY CITY GAS STATIONS DO WE HAVE RIGHT NOW? >> I DON'T WANT TO GUESS.
>> HI. SO WE HAD TWO FUEL STATIONS, AND THEN THIS YEAR WE JUST BROUGHT ON A THIRD FUEL STATION AT FIRE STATION SEVEN. AND THAT IS PER AN AUDIT RECOMMENDATION THAT WE'VE IMPLEMENTED AND WILL ALSO REDUCE THE FUEL CARD USAGE FOR RETAIL GAS STATIONS BY BRINGING
THAT STATION ONLINE. >> SO WHAT'S THE POLICY. SO IF SOMEBODY'S OUT DRIVING AROUND THEY NEED GAS. ARE THEY ARE THEY MANDATED TO GO TO A CITY FUEL STATION OR WHAT'S THE HOW DO YOU MAKE THE DECISION ON THAT VERSUS A COMMERCIAL GAS STATION?
>> OF COURSE. SO THERE'S AN APPLICATION PROCESS. IF YOU BELIEVE YOUR OPERATION NEEDS SUPPORT FROM RETAIL FUEL STATIONS, THAT APPLICATION GOES THROUGH FACILITIES, FLEET SERVICES AND THE PROCUREMENT TEAM TO LOOK AT THE ACTUAL NEED. IF YOU'RE OUTSIDE OF A CERTAIN SERVICE AREA OR FOR PUBLIC SAFETY, WHERE THEIR PATROL AREAS ARE NOT NEAR A LOCATION.
SO WE'VE GREATLY REDUCED THE NEED FOR FUEL CARDS BY OPENING FIRE STATION SEVEN FUELING ISLAND, AND THEN IT IS ASSESSED AT EACH INDIVIDUAL NEED. IF WE'RE GOING TO MOVE TO A WEX
CARD. >> APPRECIATE THE INFORMATION. OF COURSE. WONDERFUL. ALL RIGHT.
THANK YOU. THANK YOU. ANY OTHER QUESTIONS? >> ALL RIGHT. SO NEXT WE'RE GOING TO MOVE TO THE TECHNOLOGY SERVICES. IT SUPPORTS SOFTWARE HARDWARE NETWORK SECURITY, COMMUNICATION PLATFORMS AND MORE. THE DEPARTMENT, AMONG MANY THINGS, MANAGES ROUGHLY 1600 SUPPORT TICKETS PER MONTH, ALL WHILE MAINTAINING A 98% SATISFACTION RATE FROM THE EMPLOYEES THAT THEY ARE SUPPORTING. THIS YEAR'S REVENUE INCREASES INCLUDE TOWER LEASE PAYMENTS, FIBER LEASES, AND AN ADJUSTMENT TO INVESTMENT INCOME TRANSFERS IN ALSO INCREASE TO SUPPORT EXPANDING TECHNOLOGY INFRASTRUCTURE ACROSS THE ORGANIZATION. ON THE EXPENDITURE SIDE, THE DEPARTMENT CONTINUES SIGNIFICANT INVESTMENTS IN OPERATIONS, INCLUDING SOFTWARE PLATFORMS AND CORE SYSTEMS ACROSS THE CITY.
>> YES, COUNCILMEMBER. COUNCILMEMBER. >> THANK YOU. WHERE DOES SECURITY FALL INTO EXPENDITURES? WHAT IS THAT UNDER AS FAR AS I MEAN, THAT'S JUST TERRIFYING
THESE DAYS. AS FAR AS WHICH TYPE OF SECURITY FACILITIES OR. >> I'M SORRY ABOUT THAT.
MICHAEL DEEGAN CHIEF TECHNOLOGY OFFICER GOOD AFTERNOON, COUNCIL AND MAYOR. IT DEPENDS ON WHAT SECURITY YOU'RE TALKING ABOUT. IS IT PHYSICAL, ON PREMISE SECURITY OR JUST DATA SECURITY?
>> DATA SECURITY. >> YEAH. THAT FALLS UNDERNEATH MY ORGANIZATION. I HAVE A ISO POLE FOUNTAIN. AND THEN WE HE SETS POLICY AND REQUIREMENTS FOR INFRASTRUCTURE APPLICATIONS.
WE DO THE REVIEW OF ALL THE APPLICATIONS, MAKE SURE IT MEETS ALL THE, THE GUIDELINES
THAT WE NEED TO AND ESTABLISHES WHAT OUR RISK PROFILE IS. >> SO THAT IS ACCOUNTED FOR UNDER PERSONNEL THEN. YES, ACTUALLY. ABSOLUTELY. AS FAR AS ANY, ARE THERE ANY OUTSIDE CONSULTANTS THAT ARE USED AS FAR AS TESTING VULNERABILITIES, ETC. IS THAT DONE INTERNALLY?
>> THAT'S DONE INTERNALLY. BUT WE ALSO DO LOOK, WE HAVE ACCESS TO LIKE INFOTECH, PRESIDIO AND SOME OTHER OUTSIDE VENDORS THAT WE MAY CALL ON FOR ADVICE. HOW DO WE ARCHITECT SOMETHING? HOW DO WE MAKE SURE THAT WE HAVE SOMETHING THAT'S BUTTONED DOWN AND, YOU KNOW, AND SECURE? SO
WE DO UTILIZE OUTSIDE CONTRACTORS FOR SPECIFICS. >> THANK YOU. I JUST WANT TO CONGRATULATE YOU ON THE SATISFACTION SCORE, WHICH IS JUST ALMOST UNHEARD OF AS FAR AS THE 98% SATISFACTION, AND JUST WHAT CONFIDENCE THAT GIVES THE PEOPLE OF DENTON THAT THIS VERY IMPORTANT FUNCTION OF OUR CITY IS IN GOOD HANDS. I MEAN, YOU JUST HEAR ABOUT CITIES AND STATES AND HOSPITALS AND SCHOOL DISTRICTS THAT ARE VULNERABLE, AND THAT JUST SPEAKS TO HOW WELL THIS IS BEING RUN. AND SO I JUST ALSO WANT TO EXPRESS MY GRATITUDE.
>> THANK YOU VERY MUCH. I'LL MAKE SURE THAT THE TEAM HEARS THAT. THEY WOULD APPRECIATE
THAT. >> THANK YOU. >> THANK YOU.
>> AMY. I KIND OF HAD THIS QUESTION ACROSS ALL OF THE INTERNAL FUNDS. I NOTICED ON A LOT OF THEM, THERE WAS A EITHER INVESTMENT INCOME THAT DIDN'T EXIST BEFORE OR PRETTY BIG INCREASES IN IT. WHAT'S THE CAUSE OF THAT? OR WHERE IS THAT MONEY COMING FROM?
>> YES, I WILL TELL YOU, AS I LOOKED BACK THROUGH THE PRIOR FIVE YEARS OF HISTORY WITH THESE FUNDS, WE WERE NOT CONSISTENTLY BUDGETING FOR THIS PARTICULAR ITEM. WE WERE
[03:25:01]
CERTAINLY RECEIVING THE INVESTMENT INCOME. WE JUST WERE NOT BUDGETING FOR IT. SO THIS IS THIS IS BUDGETING APPROPRIATELY FOR THAT REVENUE SOURCE.>> AND IS THIS INVESTMENT KIND OF COMING OFF OF OUR LIKE, WHAT IS IT, 900 MILLION? IS IT
COMING FROM THAT 900 MILLION IN INVESTMENTS OR SOMEWHERE ELSE? >> IT'S THE PERCENT OF RETURN ON BASED ON THE AVAILABLE CASH BALANCE WITHIN THAT PARTICULAR FUND.
>> OKAY. I THINK THAT MAKES SENSE. YEAH. OKAY. ALL RIGHT. THANK YOU.
>> OKAY. NEXT WE'RE GOING TO LOOK AT RISK AND SAFETY, WHICH MANAGES THE CITY'S INSURANCE PROGRAM CLAIMS AND WORKPLACE SAFETY INITIATIVES AND REGULATORY COMPLIANCE. THIS YEAR DOES INCLUDE SOME STAFFING ADJUSTMENTS. A DOT COORDINATOR TRAINER WAS MOVED FROM HUMAN RESOURCES. SO FROM THE GENERAL FUND TO THIS PARTICULAR FUND, IN ORDER TO BETTER ALIGN RESPONSIBILITIES THAT RESULT IN A TOTAL OF NINE FTE FOR THIS PARTICULAR FUND, REVENUE RISES SLIGHTLY DUE TO INCREASED TRANSFERS IN CLAIMS REIMBURSEMENTS, AND THEN
EXPENDITURES ALSO INCREASED LARGELY AROUND INSURANCE COSTS. >> ANY QUESTIONS? SAYING NONE.
>> OKAY. NEXT WE'LL LOOK AT THE ENVIRONMENTAL SERVICES FUND. ENVIRONMENTAL SERVICES PLAYS A CRITICAL ROLE IN SAFEGUARDING DENTON'S NATURAL RESOURCES AND ENVIRONMENTAL HEALTH. THOUGH NOT SHOWN HERE, THEY DO OVERSEE THE CITY'S MUNICIPAL LAB AND LEAD SUSTAINABILITY INITIATIVES THAT SUPPORT AND STRENGTHEN DENTON'S ENVIRONMENT. FOR FY 2027, THE WATERSHED PROTECTION HAS BEEN MOVED UNDER ENVIRONMENTAL SERVICES AND SUSTAINABILITY FROM DRAINAGE THAT ADDED EIGHT FTE. SO THE DEPARTMENT WITHIN THIS FUND NOW HAS A TOTAL OF 40 FTE. THIS CHANGE IS REFLECTED IN BOTH THE REVENUES AND THE EXPENDITURES SHOWN HERE. THERE'S ALSO FUNDING FOR CAPITAL ITEMS IN THE FIXED ASSET LINE. THAT INCLUDES EQUIPMENT FOR THE MUNICIPAL LAB AND FOR MONITORING WATER QUALITY, ALONG WITH PROJECTS TO IMPROVE WATER QUALITY THROUGH WATERSHED PROTECTION. BEST PRACTICES. ANY QUESTIONS FOR THIS FUND?
>> JUST REMIND ME. I KNOW IT TRANSFERS OUT ARE TRANSFERS INTERFUND TRANSFERS. THAT'S JUST FROM OTHER THAT WOULD BE OTHER DEPARTMENTS COMING IN AND OKAY. THANK YOU. ANY OKAY.
>> ALL RIGHT. SO NEXT WE'LL LOOK AT ENGINEERING SERVICES. THIS IS THE TEAM RESPONSIBLE FOR DESIGNING CAPITAL PROJECTS, MANAGING CONSTRUCTION AND PERFORMING INSPECTIONS OF BOTH PUBLIC INFRASTRUCTURE AND PRIVATE DEVELOPMENT. IT FUNDS BOTH CAPITAL PROJECTS AND ASPECTS OF THE DEVELOPMENT SERVICES DEPARTMENT. THERE ARE 53 FTE. WE DID HAVE ONE POSITION MOVED FROM THIS FUND TO THE DRAINAGE FUND, AGAIN TO BETTER ALIGN RESPONSIBILITIES WITH STORMWATER OPERATIONS. ON THE REVENUE SIDE, YOU'LL NOTICE INCREASES IN OPERATING REVENUES AND DEVELOPMENT REVIEW FEES. THIS JUST REFLECTS ONGOING DEVELOPMENT ACTIVITIES ACROSS DENTON. SOME OF THE DEVELOPMENT RELATED FEES DECREASE, BUT OVERALL WE STILL HAVE A A POSITIVE REVENUE STREAM INTO THIS FUND. EXPENDITURES ARE RISING MODESTLY. THESE ARE DRIVEN BY HIGHER OPERATIONAL NEEDS WHILE PROJECTS CONTINUE TO MOVE EFFICIENTLY THROUGH
DESIGN, PERMITTING AND THE CONSTRUCTION PHASE. >> ALL RIGHT. ANY QUESTIONS?
SEEING NONE. >> NEXT WE HAVE MATERIALS MANAGEMENT. THAT IS A DIVISION OF FINANCE AND IT IS FUNDED THROUGH THIS FUND. IT HANDLES PROCUREMENT, WAREHOUSING, INVENTORY AND DISTRIBUTION TO ENSURE DEPARTMENTS HAVE WHAT THEY NEED TO DO THEIR WORK EACH DAY. ONE OF THE HIGHLIGHTS HERE THAT WE CERTAINLY WANTED TO POINT OUT IS THIS DEPARTMENT'S ACHIEVEMENT OF THE 2026 EXCELLENCE IN PROCUREMENT AWARD THAT SHOWS THAT THEY HAVE STRONG PRACTICES IN HIGH STANDARDS. AND SO THAT'S ALWAYS SOMETHING THAT WE WANT TO HIGHLIGHT WITH OUR DEPARTMENT'S MATERIAL MANAGEMENT HAS 23 FTE OPERATIONAL COSTS, A FAIRLY CONSISTENT YEAR OVER YEAR. THE LARGEST EXPENDITURE LINE REMAINS INVENTORY, WHICH IS EXPECTED GIVEN THIS DEPARTMENT'S RESPONSIBILITIES. ANY QUESTIONS? ALL RIGHT. SO WE'RE GOING TO DO ANOTHER TRANSITION. WE'RE GOING TO GIVE DEPARTMENTS THE OPPORTUNITY TO COME IN AS WE MOVE INTO THE SPECIAL REVENUE FUNDS.
[03:30:27]
>> ALL RIGHT. SO MOVING ON TO THE SPECIAL REVENUE FUNDS. THE SPECIAL REVENUE FUNDS HAVE DEDICATED REVENUE SOURCES THAT MUST BE USED FOR A SPECIFIC PURPOSE. EVERYTHING FROM TOURISM TO TREE PRESERVATION TO IMPACT FEES AND SUSTAINABILITY FUNDS. THE CITY MANAGES 20 SPECIAL REVENUE FUNDS. THEY'RE ALL SHOWN HERE. WE'RE GOING TO HIGHLIGHT SOME OF THOSE OVER THE NEXT FEW SLIDES. SO FIRST UP IS THE TOURIST CONVENTION FUND. IT'S DRIVEN PRIMARILY BY THE HOTEL OCCUPANCY TAX, WHICH LEVIES 7% ON ROOM RENTALS. APPLICATIONS FOR FUNDING INCREASED BY 24% THIS YEAR, SHOWING STRONG DEMAND FOR TOURISM RELATED SUPPORT. 2027 INCLUDES A PLANNED USE OF $428,000 IN RESERVE, LEAVING AN ESTIMATED FUND BALANCE OF JUST UNDER 500,000 AT YEAR END. WE OUTLINED THE SCORING RUBRIC RUBRICS HERE AS A GUIDELINE ON HOW DECISIONS WERE MADE WITHIN THIS FUND. WE'RE GOING TO BE SHARING THE ALLOCATION RECOMMENDATION AS WE MOVE INTO THE NEXT COUPLE OF SLIDES. SO THIS SHOWS THE BREAKDOWN OF SPECIFIC RECOMMENDATIONS FOR 2027 FUNDING. AGAIN BASED ON THE ESTABLISHED SCORING CRITERIA. IT HIGHLIGHTS EACH GROUP, THEIR SCORE, THEIR PRIOR FUNDING AND THEIR 2027 REQUESTED FUNDING PERCENTAGE INCREASE, AND THEN THE RECOMMENDED ALLOCATION. IT CONTINUES ON TO THE NEXT SLIDE WHERE WE SEE THAT BREAKDOWN. YOU'LL ALSO AGAIN NOTICE THE RECOMMENDATION FOR CONTINGENCY FUNDING TO PROVIDE SOME FLEXIBILITY FOR EMERGING NEEDS AND OPPORTUNITIES THAT MAY OCCUR DURING THE YEAR. IN TOTAL, THE RECOMMENDED BUDGET IS
APPROXIMATELY $3.7 MILLION IN FUNDING. >> COUNCIL MEMBER JESTER.
>> THANK YOU. THANK YOU SO MUCH. IT'S SO WONDERFUL THAT WE HAVE THE ABILITY TO CONTRIBUTE TO THESE GROUPS. I DID HAVE A QUESTION ON SLIDE 65. SO JUST ONE MORE. THE GREATER DENTON ARTS COUNCIL PUBLIC ART. IT DOESN'T SEEM AS IF THEY MADE A FUNDING REQUEST, AND YET THEY WERE RECOMMENDED 77,560. AND THEN MY NEXT QUESTION IS IF THIS IS FOR PUBLIC ART, HOW DOES THIS DIFFER FROM THE FUND FOR OUR CITY BOARD FOR PUBLIC ART AND HOW THAT'S FUNDED?
>> I'M GOING TO HAVE MATT HAMILTON REJOIN. >> I APPRECIATE IT. THANK YOU
SO MUCH. >> MATT HAMILTON CHIEF FINANCIAL OFFICER IN 2013, COUNCIL ESTABLISHED AN ORDINANCE THAT DIRECTS 2.4% OF TOTAL REVENUE TO PUBLIC ART.
AND SO THAT AMOUNT IS 2.4% OF THE TOTAL HOT REVENUE ANTICIPATED FOR NEXT PROGRAM YEAR. SO THERE IS NOT AN APPLICATION SPECIFIC FOR PUBLIC ART. IT IS AUTOMATICALLY
PROVIDED BY THE ORDINANCE. >> THANK YOU. I DID NOT KNOW THAT. SO I REALLY APPRECIATE THAT. AND THEN IS THAT COME UP WITH RECOMMENDATIONS. AND THEN OUR CITY PUBLIC ART BOARD THEN APPROVE THAT. I'M JUST JUST WONDERING WHAT THE RELATIONSHIP IS BETWEEN THOSE.
AND IF WE FUND BOTH OF THEM OR ONE'S AN ADVISORY CAPACITY FOR THIS DONATION.
>> GOOD AFTERNOON, CHRISTINE TAYLOR. SO THE GREATER DENTON ARTS COUNCIL DOES SUBMIT AN OPERATING BUDGET REQUEST TO RUN THE COMMUNITY ART PROGRAMS THAT THEY RUN OUT OF THE FACILITY THAT THE CITY OWNS AND THE PUBLIC ART COMMITTEE. RIGHT NOW, THE PROJECTS THAT THEY'RE OVERSEEING ARE THE PROJECTS RELATED TO THE BOND PROGRAM, WHERE MONEY WAS SET ASIDE FOR ANY VERTICAL CONSTRUCTION PROJECT. AND THEN KRISTI OGDEN, THE EXECUTIVE DIRECTOR, ALSO
SITS ON THAT PUBLIC ART COMMITTEE. >> SO THE PUBLIC ART AND
[03:35:02]
FORGIVE ME FOR TAKING JUST A MINUTE TO UNDERSTAND THIS. THE PUBLIC ART CITY ORGANIZATION THAT DEALS WITH OUTSIDE WHERE EVERYONE CAN SEE VERSUS GREATER ARTS COUNCIL PUBLIC ART THAT HAS TO DO WITH THEIR SHOWINGS INSIDE THE BUILDING. IS THAT FAIR?>> CORRECT. THE OPERATIONS OF RUNNING GDAC. SO WHEN THEY HAVE THE EXHIBITS AND RUN THE VARIOUS PROGRAMING OUT OF THE ARTS COUNCIL BUILDING, THAT'S WHAT ONE OF HER APPLICATIONS IS FOR. AND THEN THE SECOND PIECE IS ANY PUBLIC ART, THAT 2.4% THAT MATT SPOKE ABOUT. SO WE HAVE ART BEING HANDLED BY THE CITY AND BY GREATER ARTS COUNCIL THAT ARE BEING FUNDED
EITHER THROUGH BOND FUNDS OR THE FUNDS. >> AND THE ORDINANCE THAT GOES SPECIFICALLY TO GREATER DENTON ARTS COUNCIL, OR THAT'S DISCRETIONARY AS FAR AS WHERE
IT GOES TOWARDS PUBLIC ART. >> I THINK IT'S DISCRETIONARY BECAUSE WE USED TO BEFORE KRISTI WAS IN THAT POSITION, WE WOULD RETAIN A PORTION OF IT. AND THAT'S HOW LIKE THE TRAFFIC ART BOXES WERE FUNDED. SO ONCE SHE CAME ONLINE AND STARTED DOING MORE WITH THAT BUILDING,
WE'VE SHIFTED THAT ART FUNDING TO GO TO GDAC. >> OKAY. THANK YOU.
>> REAL QUICK QUESTION. UNDER FUNDING REQUESTS, IT HAS PERCENTAGES. WHAT IS THAT A PERCENTAGE OF. I WAS TRYING TO DO THE MATH AND I WAS GETTING A LITTLE CONFUSED. YES.
>> SO IT IS A PERCENTAGE OF WHAT THE ORGANIZATION RECEIVED IN 2026. SO THIS IS DIFFERENT THAN THAN THE SPONSORSHIP FUND. SO WITH THE HOT FUNDS. STAFF PROVIDED THE COMMUNITY PARTNERSHIP COMMITTEE WITH TWO FUNDING RECOMMENDATIONS. THE FIRST FUNDING SCENARIO LOOKED AT FUNDING THE ORGANIZATIONS AT THE SAME LEVEL AS WE FUNDED IN THE PRIOR YEAR. AND THE SECOND FUNDING RECOMMENDATION UTILIZED THE SCORING RUBRIC TO ASSIGN PERCENTAGES, AND THOSE PERCENTAGES WERE THEN APPLIED TO WHAT THEY RECEIVED LAST YEAR BASED ON HOW THEY SCORED IN THEIR APPLICATIONS. WHAT IS REFLECTED HERE IS THAT SECOND SCENARIO, WHICH WAS THE RECOMMENDATION OF CPC, TO UTILIZE THE SCORING RUBRIC AND THE SCORING, AND THEN APPLY THE
PERCENTAGES TO WHAT THEY RECEIVED IN 2026. >> OKAY. SO JUST AS AN EXAMPLE, NORTH TEXAS STATE FAIR ASSOCIATION, LAST YEAR, THEY GOT 417,200. THEY REQUESTED 490.
AND THEY THE RECOMMENDATION IS 417 200, WHICH WAS THE SAME AS 2026. SO WHAT IS THE 17%? WHAT
DOES THAT REPRESENT? >> YES. GREAT QUESTION. SORRY. THAT 17% REPRESENTS WHAT THE ORGANIZATION REQUESTED ABOVE, WHAT THEY HAD RECEIVED IN FISCAL YEAR 26 IN THE CURRENT.
>> YEAR, THE INCREASE FROM LAST. >> YEAR, THAT IS THE INCREASE FROM LAST YEAR THAT THE ORGANIZATION REQUESTED. IN TOTAL, I BELIEVE THAT THE AMOUNT WAS ABOUT 2,023% OVER WHAT WAS RECEIVED LAST YEAR IN REQUESTS TO KIND OF SET THE STAGE, THE ANTICIPATED INCREASE IN REVENUE YEAR OVER YEAR IS ABOUT 2%. SO ALTHOUGH THE ORGANIZATION'S REQUESTED QUITE A BIT MORE THAN THEY HAD IN THE PRIOR YEAR, WHAT WE'RE ABLE TO FUND IS ESSENTIALLY WHAT WE
WERE ABLE TO FUND LAST YEAR. >> ON SOME OF THEM. YEAH. BECAUSE WHEN I'M LOOKING AT GREATER DENTON ARTS COUNCIL, THEY WERE AT 160 LAST YEAR. THEY ASKED FOR 300. THIS YEAR I'M GOING TO ASK FOR, YOU KNOW, YOU CAN'T GET WHAT YOU DON'T ASK FOR. BUT THEN IT WAS 128, WHICH WAS A, YOU KNOW, THAT'S ABOUT A. 20 ABOUT A 20% DECREASE. SO WHEN I MOVE DOWN TO THE BOTTOM OF THIS WHERE IT HAS THE TOTALS, SO WHAT I'M HEARING YOU SAY IS LAST YEAR WE APPROVED BASICALLY ALMOST 4,000,003.908613. IS THAT RIGHT. YEAH.
>> YES. >> OKAY. >> THAT'S CORRECT. AND I DO JUST WANT TO QUICKLY NOTE THAT ON THIS SLIDE HERE WHERE IT SHOWS THE FUNDING FORMULA, WHAT ISN'T SHOWN, BUT THAT I'LL LET YOU KNOW, IS THAT IF A SCORE WAS BETWEEN 90 AND 100 POINTS, IT WAS FUNDED AT 100%, 75 TO 89 POINTS. IT WAS FUNDED AT 80%, 60 TO 74 POINTS. IT WAS FUNDED AT 60%. AND ANYTHING BELOW 60 POINTS WAS FUNDED AT 40%. AND THOSE PERCENTAGES, AGAIN, WERE
OF WHAT THEY RECEIVED IN IN THE CURRENT FISCAL YEAR. OKAY. >> AND THAT WAS CREATED. THIS
[03:40:04]
FORMULA FUNDING RUBRIC WAS CREATED. >> HOW SO? STAFF PUT TOGETHER THE SCORING RUBRIC AT THE DIRECTION OF THE COMMUNITY PARTNERSHIP COMMITTEE. THAT SCORING RUBRIC WAS BROUGHT TO THE COMMUNITY PARTNERSHIP COMMITTEE FOR REVIEW AND DISCUSSION. THE RUBRIC AND FORMULA FUNDING THAT YOU SEE HERE WAS THE FINAL RESULT OF THOSE DISCUSSIONS, AND THAT'S WHAT WAS USED IN SCORING THE APPLICATIONS.
>> DEFINITELY, WE NEED TO INCLUDE THIS TOGETHER WITH THE IN-KIND CASH SPONSORSHIP, BECAUSE WHAT I'M WHAT I'M HEARING YOU SAY, CORRECT ME IF I'M WRONG, IS THAT THESE THESE FORMULAS WERE CREATED AT A SUBCOMMITTEE LEVEL. FAIR ENOUGH. BUT WERE THEY EVER APPROVED AT A COUNCIL LEVEL? I DON'T I DON'T REMEMBER, I DON'T REMEMBER THAT OCCURRING. SO I THINK IT'S CRITICAL THAT WE LOOK AT THAT BECAUSE IT'S JUST CRITICAL WE LOOK AT THAT.
BECAUSE I THINK WE NEED TO MAYBE MAKE SOME ADJUSTMENTS OR FIGURE SOMETHING OUT. I MEAN, I UNDERSTAND THERE'S CERTAINLY LEGAL IMPLICATIONS AND THINGS LIKE THAT. I THINK THERE JUST NEEDS TO BE VERY COMPREHENSIVE CONVERSATION. SO TO TIE INTO OUR LAST ONE, SO WHEN WE SAW THE CASH SPONSORSHIP WITH IN-KIND AND CASH GOING TO SOME OF THESE SAME ORGANIZATIONS, SO THE RECOMMENDATIONS FROM THE TOURIST AND CONVENTION FUND, THAT'S THIS. THEN IF WE ADD TOGETHER THE CASH AND SPONSORSHIP THAT GETS THEIR TOTAL ALLOCATION. OR IS THIS IN IS THAT IS THAT RIGHT? OKAY. SO IT WOULD BE NICE IN THE FUTURE IF, UNLESS I'M MISSING IT, LET ME MAKE SURE I DIDN'T MISS IT TO WHERE I COULD LOOK AT THE BLACK FILM FESTIVAL. AND THEY'RE GETTING A RECOMMENDATION OF 80,000, BUT THAT'S ON THAT'S THAT DOESN'T INCLUDE THE WHATEVER IT WAS, 15,000. IT'D BE NICE TO KNOW WHAT THE TOTALS WERE. COMBINING BOTH OF THOSE FOR THESE ORGANIZATIONS BECAUSE THEY'RE TWO SEPARATE THINGS. YES.
COUNCIL MEMBER. >> I JUST I JUST WANT TO SAY THANK YOU. I THINK THAT'S A VERY GOOD SUGGESTION. AND I THINK THAT BECAUSE THIS IS SO IMPORTANT AS WELL AS SOMETHING I THINK ALL OF THE CONSTITUENTS ARE VERY INTERESTED IN THAT, HAVING SOME KIND OF COUNCIL LEVEL DISCUSSION BEFORE IT'S BROUGHT AND PROPOSED AS PART OF THE BUDGET, WHERE WE CAN LOOK AT THE IN-KIND VERSUS THE CASH VERSUS THE FUNDS. I MEAN, NOT THAT WE WANT TO TAKE AWAY WHAT THAT COMMITTEE DOES. THAT COMMITTEE ACTUALLY HEARS ALL OF THE PRESENTATIONS AND TAKES ALL THAT INTO CONSIDERATION. HOWEVER, IT SEEMS NOW AT THIS POINT TO BE LATE IN THE GAME FOR ME TO SAY, I THINK THE TEXAS VETERANS MUSEUM SHOULD HAVE A HIGHER PERCENTAGE, THE HOLIDAY TREE LIGHTING, I THINK, SHOULD HAVE SHOULD HAVE BEEN GIVEN MORE AS WELL AS THE FAIR.
AND THEN I ALSO WOULD LIKE TO SEE PUBLIC ART REALLY GOING TO ART THAT'S THAT'S IN PUBLIC AND OUT IN OUR COMMUNITY. I THINK THAT'S SOMETHING THAT WE DON'T HAVE A NOT ENOUGH OF, WHETHER THAT BE MURALS BY DAN BLACK, WHETHER THAT BE OUT LIKE WE HAVE AT THE TRAFFIC CIRCLE, THE PIECE THAT WE HAVE THERE. I THINK THAT REALLY ADDS SOMETHING TO OUR COMMUNITY. SO I THINK THAT'S A VERY GOOD SUGGESTION. AND I WOULD LIKE TO PUT IN MY MY VOTE THERE, EVEN THOUGH IT TAKES MORE TIME. BUT I JUST, YOU KNOW, I DON'T WANT TO UPSET THE APPLE CART AT THIS POINT, BUT AT THE SAME TIME, DON'T FEEL COMFORTABLE WITH, WITH SOME OF THESE ALLOCATIONS.
THANK YOU FOR. >> NO, I THINK IN CITY MANAGER AND I WERE HAVING AN OFFLINE.
JUST TALKING ABOUT THE DIRECTION THAT YOU WOULD LIKE, AT LEAST ON THE CASH, SPONSORSHIPS AND ALL THAT, BUT IT SOUNDS LIKE THESE ARE SORT OF INTEGRATED CONVERSATIONS. SO ARE YOU OKAY IF ON THE 18TH, I BELIEVE YOU SAID YOU COULD HAVE A WORK SESSION ON THE 18TH WHERE WE COULD MAYBE BRING BACK THIS COMPREHENSIVE LOOK, AND THAT WAY WE CAN GIVE YOU SPECIFIC DIRECTION ON THESE TYPE OF DIFFERENCES, EVEN FOR THIS BUDGET CYCLE. UNDERSTAND, COUNCILMEMBER JESTER, THAT I IT MAY BE A LITTLE LATE IN THE GAME, BUT I THINK IT'S I THINK IT'S IMPORTANT THAT WE REALLY, REALLY DO THIS NOW. AND I JUST WANT TO MAKE SURE I UNDERSTAND.
THESE RECOMMENDATIONS WERE PRIMARILY THE APPLICATION OF THE FORMULA TO PRIMARILY. IS THAT RIGHT? I MEAN, IT'S NOT. I GUESS THERE COULD BE SOME VARIATIONS MADE AT THE CPC SUBCOMMITTEE. THEY COULD MAKE SOME RECOMMENDATIONS TO ADD OR SUBTRACT OR DO SOME OF THOSE THINGS. BUT ARE THESE PRIMARILY THE APPLICATION OF THAT FORMULA THAT. AND THAT'S HOW WE SORT OF
GET MOST OF THESE NUMBERS. >> YES. SO ALL THE SCORING RUBRIC DOES IS JUST PROVIDE THE GUIDELINES FOR THE STAFF EVALUATORS TO SCORE WITHIN SEVEN DIFFERENT CATEGORIES. THE INFORMATION THAT WE RECEIVE FROM ORGANIZATIONS, THAT INFORMATION IS THEN PROVIDED TO
[03:45:01]
THE COMMUNITY PARTNERSHIP COMMITTEE FOR CONSIDERATION. BUT EITHER THE COMMUNITY PARTNERSHIP COMMITTEE OR THE COUNCIL MAY REALLOCATE ANY OF THE FUNDING OR THE CONTINGENCY FUNDING AS AS YOU DEEM APPROPRIATE. SO IT IS ONLY A RECOMMENDATION, YOU KNOW, BASEDON THAT SCORING RUBRIC. SURE. >> AND I DIDN'T SEE AND I THINK I KNOW THE ANSWER TO THE QUESTION, BUT I DIDN'T SEE THE CONVENTION CENTER OR RILEY EITHER IN WHAT THEY'RE GENERATING IN HOT FUNDS OR WHAT WE'RE PAYING. I THINK IT'S BECAUSE WE JUST GIVE THEM THAT AMOUNT. BUT I THINK IN THE FUTURE, I'D AT LEAST LIKE TO JUST. IS IT I DIDN'T SEE IT ON HERE. DISCOVER DENTON. I DON'T THINK THAT'S THAT'S SOMETHING TOTALLY DIFFERENT OR OH, THERE IT IS RIGHT THERE. IT'S IT'S A SEPARATE ONE. OKAY. GOTCHA. ALL RIGHT. THERE IT IS. OKAY. I
SHOULD HAVE TURNED THE SLIDE. I WOULD HAVE SEEN IT. OKAY. YES. >> IT WOULD ALSO BE HELPFUL TO SEE WHAT THE STRAIGHT UP IF WE WENT BY THE RUBRICS, WHAT IT LOOKED LIKE VERSUS WHAT THE COMMITTEE RECOMMENDED FOR US TO ALSO TAKE, OF COURSE, THE TIME THAT THE COMMITTEE SPENT INTO CONSIDERATION AS WELL AS OUR OWN INPUT, IF POSSIBLE. SURE. THANK YOU.
>> YEAH, YEAH. I THINK THIS HAS GENERATED A LOT OF CHATTER AMONG THE COMMUNITY. SO THIS WOULD BE GOOD, I THINK, TO REALLY TRY TO GET A GOOD HANDLE ON IT. AND I THINK WE HAVE TIME.
I THINK FROM A BUDGET PERSPECTIVE WE HAVE TIME. IS THAT RIGHT?
>> I'M HAPPY TO BRING BACK THE DISCUSSION. I THINK WE CAN PRESENT THE SAME INFORMATION THAT CPC SAW A COUPLE OF WEEKS AGO, WHICH IS WHAT YOU'RE SEEING NOW. BUT WE CAN HAVE THE MORE COMPREHENSIVE DISCUSSION REGARDING ALL OF THE FUNDING, THE APPLICATION, THE FUNDING, THE SCORING, AND SHOW THE IN-KIND, THE SPONSORSHIP AND THE HOT FUNDS ALL TOGETHER.
>> YEAH, YEAH, I THINK THAT'D BE HELPFUL. YES. COUNCIL MEMBER RUMOHR.
>> I JUST WANTED TO ADD THAT, THAT ALL OF THESE EVENTS AND THESE ORGANIZATIONS ARE EFFECTIVELY THE IDENTITY OF DENTON, THE HEARTBEAT OF DENTON. SO I APPRECIATE THAT WE'RE GOING TO TAKE A LITTLE BIT MORE TIME TO THINK VERY CAREFULLY ABOUT THIS FUNDING, BECAUSE IT
IS OUR IDENTITY WE'RE TALKING ABOUT. SO THANK YOU. >> FOR THAT. YOU BET. ALL RIGHT.
ANY OTHER COMMENTS OR QUESTIONS ON ON THIS. ALL RIGHT. THANK YOU. APPRECIATE THAT. THAT WAS ABOUT A 60 YARD PUNT RIGHT THERE. YOU KNOW WE'RE DOWN RIGHT AT THE ONE YARD LINE. I'M
JUST KIDDING. >> ALL RIGHT. SO NEXT WE'RE GOING TO LOOK AT THE TREE PRESERVATION FUND WHICH SUPPORTS TREE PLANTING AND CANOPY ENHANCEMENTS. LOOKING AT SOME OF OUR ACTUALS AND SOME OF OUR DATA FROM 2025, WE PLANTED 389 TREES, PROVIDED 900 TREES THROUGH KEEP DENTON BEAUTIFUL AND HAD A CANOPY COVERAGE OF 23%. SO I KNOW IN LOOKING AT THIS, IT APPEARS THAT REVENUES AND EXPENDITURES HAVE REDUCED SIGNIFICANTLY. BUT WHEN WE LOOK BACK AT HISTORICAL DATA FOR THIS PARTICULAR FUND, IT DOES VARY WILDLY, WIDELY FROM, I SAID WILDLY BUT WIDELY, EITHER ONE YOU WANT TO GO WITH FROM A HIGH IN 2024 OF 1.1 MILLION TO A LOW IN 2025 OF 214,000. THIS PROPOSED BUDGET DOES CONTINUE TO SUPPORT PROGRAMS THAT STRENGTHEN DENTON'S URBAN FORESTRY AND ENVIRONMENTAL RESILIENCE. ANY QUESTIONS ON
THAT FUND? >> ANY QUESTIONS? OKAY. OKAY. >> SO NEXT WE'RE GOING TO LOOK AT THE CATALYST FUND. AND IT IS ONE OF THE CITY'S TOOLS FOR SUPPORTING ECONOMIC DEVELOPMENT PROJECTS, INCENTIVES, AND PROGRAMS THAT HELP BUSINESSES GROW AND EXPAND. IN DENTON, THERE ARE. SOME SHIFTS THIS YEAR, THE GENERAL FUND TRANSFER IS NOT INCLUDED FOR FISCAL YEAR 2027 AS PROPOSED. BUT DO REMEMBER EARLIER THAT WE TALKED ABOUT THAT $1 MILLION AND WHERE WE WANT TO ALLOCATE THAT $1 MILLION SPECIFIC TO ECONOMIC DEVELOPMENT. THERE WAS A SLIGHT TYPO, I THINK, A MISSING DIGIT ON THIS SLIDE. SO IT IS IN FACT, IT IS IN FACT, REVENUES OF 3,525,000. AS YOU SEE HERE. EXPENDITURES THOUGH, CATEGORIZE TWO DIFFERENT WAYS. OVERALL, INCREASED SUPPORT TO ECONOMIC DEVELOPMENT INCENTIVES AND GRANTS. YES.
>> WHAT ACCOUNTS FOR THE DOUBLING OF THE OPERATIONS INCREASE? DO WE DO WE KNOW.
>> THOSE ARE AND I PRINTED THIS ONE LAST NIGHT. >> I MEAN I'M EXCITED ABOUT IT,
DON'T GET ME WRONG. BUT YES, I'M. >> HAPPY TO COME UP. BUT IT IS
STILL PART OF THE INCENTIVES. >> AND PROGRAM OPERATIONS. OKAY. >> YES. SO THIS YEAR WE INCREASED THE AMOUNT OF CHAPTER THREE GRANTS THAT WE CITY COUNCIL APPROVED. AND SO WE USE
[03:50:01]
THE CATALYST FUND TO FUND SOME OF THE EXPANSION GRANTS, HEADQUARTERS GRANTS AND ENTREPRENEURSHIP GRANTS AND JOB BASED GRANTS. AND SO NOVARTIS, FOR EXAMPLE, WE HAVE TO BUDGET THEIR REMEDIATION GRANT THAT CITY COUNCIL APPROVED. AND THEN I BELIEVE ENGINE TECH IS BUDGETED FOR THEIR JOB BASE GRANT AS WELL. AND THERE'S ANOTHER ONE I HAD ON MY COMPUTER. I CAN GRAB IT. SO THAT'S WHERE THE OPERATIONS INCREASE HAS COME FROM.>> AND PLEASE FORGIVE ME, I'M JUST TRYING TO FOLLOW. SO THE OPERATIONS FROM THE 144 TO THE 525, THAT'S NOT PERSONNEL EXPENSES. SO I THINK CORRECT. WE'VE GOT DIFFERENT DEFINITIONS OF OPERATIONS. SO WOULD YOU PLEASE TELL ME ONE MORE TIME WHAT ENCOMPASSES OPERATIONS.
AND THANK YOU. >> YES. SO THERE ARE INCENTIVE EXPENDITURES. SO IT'S JUST FOR CHAPTER THREE GRANTS. AT THE MOMENT IT IS I WHEN YOU SAID OPERATIONS, I KIND OF GOT CONFUSED BECAUSE IT'S NOT FOR THE STAFF OPERATIONS. IT'S JUST SPECIFICALLY FOR THOSE CHAPTER
THREE GRANTS. >> OKAY. THANK YOU. AND I JUST YEAH, THAT THAT WORD I WAS KEEN ON THAT VERSUS THE INCENTIVE GRANTS AND WASN'T UNDERSTANDING THE DISTINCTION. SO I UNDERSTAND NOW, AND I VERY MUCH APPRECIATE YOU ANSWERING THE QUESTION. THANK YOU.
>> I WOULD PROBABLY SAY MOVING FORWARD, WE PROBABLY GET THAT A LITTLE BIT MORE DESCRIPTIVE
INSTEAD OF OPERATIONS. THANK YOU. YEAH. >> THAT WAS ME. I GET IT NOW.
THANK YOU. >> ANY OTHER QUESTIONS ON THE CATALYST FUND. SEEING NONE.
>> OKAY. SO NEXT WE'LL LOOK AT THE SUSTAINABILITY FUND, WHICH CONTINUES TO INVEST IN ENVIRONMENTALLY FOCUSED PROGRAMS THAT ALIGN WITH THE CITY'S LONG TERM SUSTAINABILITY GOALS. AGAIN, WITHOUT A TRANSFER FROM THE GENERAL FUND IN 2027. THIS BUDGET DOES RELY HEAVILY ON THE USE OF RESERVES TO SUPPORT PLANNED PROGRAM SPENDING EXPENDITURES, STAY FOCUSED ON HIGH IMPACT SUSTAINABILITY PROGRAMS THAT HELP BOTH THE COMMUNITY AND THE ORGANIZATION ADOPT CLEANER, MORE EFFICIENT PRACTICES. THE HIGHLIGHT SHOWN HERE OFFER A SNAPSHOT INTO WHAT SOME OF THOSE PROGRAMS ARE. THE FUND DOES REMAIN ALIGNED WITH THE SUSTAINABILITY FRAMEWORK ADVISORY COMMITTEE'S WORK PLAN AND CONTINUES STRONG, COMMUNITY
FOCUSED INVESTMENTS. >> YES. COUNCIL MEMBER RUMOHR. >> THANK YOU. JUST QUICK CLARIFICATION BECAUSE I DON'T THINK I HAVE EASY ACCESS TO THIS LEVEL OF DETAIL. DOES THE SUSTAINABILITY BUDGET HAVE FUND HAVE ITS OWN RESERVES? NO. OR ARE THOSE RESERVES COMING FROM
SOMEWHERE ELSE? >> IT IS ITS OWN RESERVES AND THEY ARE USING SOME OF THOSE
RESERVES THIS NEXT YEAR. >> OKAY. >> THANK YOU.
>> SO IT HAS ITS OWN FUND BALANCE. YES THAT'S CORRECT. >> IT CURRENTLY DOESN'T HAVE A FUND BALANCE TARGET, WHICH IS BUT IT DOES HAVE ITS OWN FUND BALANCE. RIGHT.
>> OKAY. ALL RIGHT. >> OKAY. >> NEXT WE'RE GOING TO LOOK AT THE STREET IMPROVEMENT FUND, WHICH IS RESPONSIBLE FOR MAINTAINING OUR ROADWAYS AND PAVEMENT NETWORK. IT IS ONE OF THE CITY'S LARGEST AND MOST VISIBLE VISIBLE INFRASTRUCTURE PROGRAMS, EVERYTHING TO FROM MILLING AND OVERLAY SURFACE TREATMENTS, AS WELL AS ADA COMPLIANT SIDEWALK PROJECTS. THIS FUND SUPPORTS 40 FTES. THEY PERFORM FIELD WORK AND SUPPORT MAINTENANCE OPERATIONS, THE MOST SIGNIFICANT SOURCE OF REVENUE, AND I KNOW I MENTIONED THIS EARLIER, WAS THE $16.3 MILLION IN FRANCHISE FEES THAT IS PASSED THROUGH THE GENERAL FUND AND THEN MOVED TO THE STREET FUND. HOWEVER, UNLIKE 2026, 2027 DOES NOT INCLUDE A $2.5 MILLION TRANSFER FROM THE GENERAL FUND. SO YOU'LL SEE ON THIS SLIDE SOME OF THE MAJOR PROJECTS THAT ARE FUNDED FOR 2027. THESE REFLECT SOME OF THE MOST SIGNIFICANT EXPECTATIONS OF OUR RESIDENTS. AS YOU MAY RECALL, STREETS AND SIDEWALKS WAS ONE WAS THE TOP PRIORITY FOR OUR COMMUNITY AND THIS YEAR'S COMMUNITY SURVEY, AND WHERE THEY WANTED TO MAKE SURE THAT WE WERE FOCUSING OUR RESOURCES. ANY QUESTIONS ON THIS FUND? OKAY. NEXT WE'RE GOING TO MOVE ON TO THE ROADWAY, WATER AND WASTEWATER IMPACT FEES FUNDS. THESE COLLECT REVENUES FROM NEW DEVELOPMENT TO HELP PAY FOR INFRASTRUCTURE THAT IS NEEDED BECAUSE OF THE GROWTH OF THAT NEW DEVELOPMENT. THEY'RE AN IMPORTANT TOOL THAT HELPS US EXPAND THE SYSTEM WITHOUT PLACING THE BURDEN ENTIRELY ON OUR EXISTING CUSTOMERS. ROADWAY IMPACT FEES AND REVENUES AND EXPENDITURES REMAIN FLAT AT $5 MILLION FOR THE WATER AND WASTEWATER FEE.
REVENUES ARE EXPECTED TO INCREASE SLIGHTLY AS DEVELOPMENT CONTINUES AND EXPENDITURES RISE TO SUPPORT MAJOR CAPITAL PROJECTS. YOU MAY RECALL THAT WE TALKED ABOUT THIS AS WELL IN TUESDAY'S MEETING AND OUR USE OF IMPACT FEES TOWARDS DEBT AND DEBT
[03:55:05]
SERVICE. WHAT I JUST WANT TO SAY IS KEEP IN MIND WITH THESE FEES, THAT THEY CAN FLUCTUATE YEAR TO YEAR BASED ON DEVELOPMENT ACTIVITY HAPPENING IN DENTON. ANY QUESTIONS ONIMPACT FEES? >> YES. COUNCILMEMBER RUMOHR. >> CAN WE GET A REMINDER ON WHEN WE RECEIVE IMPACT FEES OR BASICALLY, AT WHAT POINT ARE THEY ASSESSED? AT WHAT POINT IN THE DEVELOPMENT PROCESS? I MADE SURE CHARLIE WAS IN HERE BEFORE I ASKED THIS QUESTION.
>> CHARLIE IS GOING TO BE JOINING US NOW. >> YEAH. GOOD AFTERNOON.
>> MAYOR AND CITY COUNCIL. CHARLIE ROSENTHAL, DIRECTOR OF DEVELOPMENT SERVICES. SO WE
COLLECT IMPACT FEES AT BUILDING PERMIT. >> BUILDING PERMIT.
>> AT THE BUILDING PERMIT. WHEN THE BUILDING PERMITS ARE ISSUED, THEY HAVE TO PAY BEFORE WE
ISSUE A PERMIT. >> OKAY. >> THANK YOU.
>> ANY OTHER QUESTIONS ON IMPACT FEES? >> ALL RIGHT. SO WE'RE GOING TO DO ANOTHER CHANGE OUT REALLY QUICKLY. WE HAVE ANOTHER GROUP OF DIRECTORS AND DEPARTMENT REPRESENTATIVES THAT WILL COME INTO THE ROOM. AND THEN WE'RE GOING TO TALK ABOUT THE CAPITAL IMPROVEMENT PROGRAM. AND THAT IS GOING TO BE PRESENTED BY MATT HAMILTON, OUR CFO.
OKAY. WELL. DON'T WAIT ON CITY MANAGER. A LOT IN HERE. IT'S ALL.
>> YEAH. GO AHEAD. OKAY. >> GOOD AFTERNOON AGAIN. MATT HAMILTON, CHIEF FINANCIAL OFFICER HERE TODAY TO TALK A LITTLE BIT ABOUT THE CAPITAL IMPROVEMENT PROGRAM AND SPECIFICALLY AS A FOLLOW UP TO THE COUNCIL WORK SESSION THAT WE HAD ON JULY 14TH, WHERE COUNCIL PROVIDED DIRECTION TO EVALUATE POTENTIALLY EXTENDING THE 2023 BOND PROGRAM. SO THIS IS AN OVERVIEW OF THE 2023 BOND ISSUANCE TIMELINE. THIS IS THE CURRENT TIMELINE THAT THE CITY HAS BEEN OPERATING UNDER. AND SO WE ARE CURRENTLY ABOUT HALFWAY THROUGH WHAT WAS A SIX YEAR OR IS A SIX YEAR PROGRAM. WHAT I'LL POINT OUT IS THAT IN FISCAL YEAR 2627, WHICH WE'RE CURRENTLY BUDGETING FOR, THE CURRENT BOND ISSUANCE TIMELINE, HAS 69.9 MILLION ANTICIPATED TO BE ISSUED, FOLLOWED BY 51,000,048.4 MILLION TO CLOSE OUT THE PROGRAM. SO IN TOTAL, THE PROGRAM IS 291.3 MILLION. AS WE TOOK A LOOK AT VARIOUS OPTIONS AVAILABLE TO EXTEND THE
[04:00:12]
PROGRAM AND WHAT EXACTLY THAT WOULD LOOK LIKE IN TERMS OF EFFICIENCIES IN BRINGING THESE PROJECTS FORWARD. WHAT WE'VE DONE IS WE'VE ADDED AN ADDITIONAL FOUR YEARS TO THE BOND ISSUANCE TIMELINE, AND I'LL WALK THROUGH SOME OF THE CHANGES HERE. SO WHAT WE'RE PROPOSING ON THE LAST SLIDE. I HAD MENTIONED THE 69.9 MILLION WE ARE PROPOSING IN 26. 27 IS 5.8 MILLION. SO REDUCING IT FAIRLY SUBSTANTIALLY FOR NEXT FISCAL YEAR. BUT INCLUDED IN THAT IS 250,000 FOR THE ACTIVE ADULT CENTER, 250,000 FOR THE SOUTH BRANCH LIBRARY. AND REALLY WHAT THOSE DOLLARS ARE FOR IS TO START WORK ON SITE EVALUATIONS, PREPARING SOME DETAILED COST ESTIMATES, AND ALSO PRODUCING SOME CONCEPT DESIGNS AS IT RELATES TO POTENTIALLY CO-LOCATING THOSE PROJECTS AND EXACTLY WHAT THE PROJECTED SAVINGS WOULD WOULD LOOK LIKE. ADDITIONALLY, FOR PROPOSITION C, WE HAD MOVED OUT THE WATER PARK TO THE END OF THE BOND PROGRAM IN PROPOSITION E AFFORDABLE HOUSING. WE JUST SPREAD OUT THE DOLLARS A LITTLE MORE. SO $300,000 PROPOSED FOR NEXT FISCAL YEAR JUST TO GET THE PROGRAM UP AND RUNNING. AND THEN FROM THAT POINT FORWARD, RAMPING UP FROM 2 MILLION TO 4 MILLION EACH YEAR. AND THEN I MENTIONED THE ACTIVE ADULT CENTER AND SOUTH BRANCH LIBRARY PROPOSITIONS F AND G. WHAT WE WOULD DO IS PLAN TO DO THAT PRELIMINARY SITE WORK AND CONCEPT DESIGNS. AND THEN IN FISCAL YEAR 2728, ISSUE THE DOLLARS THAT ARE NEEDED TO CREATE THE DESIGN DOCUMENTS.AND THEN STARTING IN FISCAL YEAR 2930, ACTUAL CONSTRUCTION ON THOSE PROJECTS. SO WHAT WE'RE TRYING TO DO HERE IS KIND OF TAKE EACH PROJECT ONE AT A TIME TO REALLY SMOOTH OUT JUST FROM A FINANCIAL PERSPECTIVE, THE IMPACT ON THE TAX RATES. AND SO WE FEEL THAT THIS POTENTIAL TIMELINE ACCOMPLISHES THAT. AND SO IN TERMS OF THE IMPACT ON THE ON THE DEBT RATE, AS WE LOOK AT THIS EXTENDED TIMELINE, THIS IS A VERY SIMILAR SLIDE TO WHAT WE HAD SHOWN ON ON JULY 14TH. THERE, THE TABLE ON THE LEFT SHOWS THE VARIOUS PROPOSITIONS, THE TOTAL THAT WE HAVE, OR THE TOTAL FOR THE PROGRAM AND THE AMOUNT THAT IS STILL REMAINING UNISSUED, AS WELL AS THE PERCENT THAT WAS IN SUPPORT BY VOTERS ON THE RIGHT HAND SIDE IS OUR TAX RATE ESTIMATES. AND SO THE LAST TIME WE REVIEWED THIS, THERE WAS. WE DIDN'T HAVE ALL THE DATA ASSOCIATED WITH THE BPP AND WHAT THOSE FINAL APPRAISAL NUMBERS LOOK LIKE. AND SO WHAT YOU'LL SEE IN THE FORECAST, BOTH FOR EXTENDING THE PROGRAM AND NOT EXTENDING THE PROGRAM, IS A REDUCTION IN THOSE PROPOSED RATES. SO AS WE LOOK AT THE TABLE ON THE RIGHT AND THOSE NUMBERS THAT ARE THERE IN, I GUESS, KIND OF AN AN ORANGE BROWN TAN COLOR FOR IF WE DO NOT EXTEND THE PROGRAM, THE TAX RATE FOR 2027 REMAINS THE SAME THAT THAT $0.23, 0.23214, THERE'S NOTHING REALLY THAT WE CAN DO AT THIS POINT TO AFFECT THE TAX RATE NEXT YEAR, BECAUSE THE DEBT SERVICE ASSOCIATED WITH BOND ISSUANCE OCCURS IN THE IN THE FOLLOWING YEAR. SO ESSENTIALLY, ANYTHING THAT WE PLAN TO DO IN THE BUDGET PROCESS FOR 2027 IS GOING TO START HITTING THE RATE IN 2028. SO BY EXTENDING THE TIMELINE, THOSE IMPACTS ARE GOING TO START TO OCCUR IN 2028. OKAY. SO IF THERE WERE TO BE NO EXTENSION TO THE BOND PROGRAM, ESSENTIALLY THAT 69.9 MILLION THAT I HAD NOTED PREVIOUSLY FOR FOR 27 WILL HIT THE TAX RATE IN 28, AND IT WILL INCREASE THE TAX RATE BY $0.02. SO IT WILL GO FROM THE 0.23 THAT WE'RE PROPOSING IN 27 TO THE .25 THAT WOULD OCCUR IN 28. AND THEN FROM THERE IT WOULD INCREASE TO 0.261 AND THEN TO 2.67. SO IF THE TIMELINE WERE TO STAY THE SAME, WE ANTICIPATE THAT WE
[04:05:06]
WOULD SEE A 2 TO 3 CENT INCREASE OVER THE NEXT NEXT FEW YEARS. IF WE MOVED FORWARD WITH THE EXTENDED TIMELINE. ESSENTIALLY WHAT IT WILL DO IS HOLD THE INS RATE AT APPROXIMATELY 23.5 CENTS THROUGH 2030. AND SO AS YOU CAN SEE THERE, THE TAX RATE WOULD MOVE FROM .23 2 TO 2 THREE 4 TO 2, THREE SEVEN, AND THEN FLATTEN OUT AT ABOUT TWO THREE, TWO, THREE SEVEN. SO WHAT THIS MEANS IS THAT THE DIFFERENCE BETWEEN EXTENDING AND NOT EXTENDING THE TIMELINE IS ABOUT 1.8 CENTS IN 2028, 2.3 CENTS IN 2029, AND 2.9 CENTS IN 2030. SO FROM A PURELY TAX RATE PERSPECTIVE, THERE IS VALUE IN EXTENDING IN EXTENDING THETIMELINE. >> OKAY. QUESTIONS? COMMENTS? I'VE GOT A COUPLE, BUT COUNCIL
MEMBER RUMOHR. >> I'LL JUST SHARE THAT. WHAT'S CAUSING ME TO STRUGGLE A LITTLE BIT WITH THESE NUMBERS AT THIS POINT IS THE BPP SITUATION, BECAUSE THE FACT THAT IT'S DRIVING DOWN THE TAX RATE MAKES ME NOT WANT TO EXTEND, BUT THERE'S STILL THAT RISK. AND I'M HAVING TROUBLE ALSO NOT KNOWING HOW IT'S GOING TO DEVALUE. IT'S KIND OF MAKING ME STRUGGLE A LITTLE BIT WITH THIS DECISION POINT. NOW COMPARED TO BEFORE WHERE, YOU KNOW, THERE WASN'T THE BPP SPIKE AND THE DOWNWARD TAX RATE, THE CALCULUS FEELS A LITTLE BIT DIFFERENT. I WILL SAY THAT FOR THAT BOTTOM BULLET ABOUT THE 1.8 CENTS, 2.3, 2.9 FOR MY HOME, WHICH IS A LITTLE BELOW, I THINK, THE MEDIAN OR AVERAGE HOME VALUE IN DENTON, THAT THE FIRST INCREASE REPRESENTS ABOUT $65 AT THE END OF THE YEAR. SO 541 PER MONTH. AND THEN THE NEXT INCREASE OF 2.3 CENTS WOULD BE AN ADDITIONAL 84 ANNUALLY, WHICH IS SEVEN PER MONTH FOR MY HOUSE ANYWAY. AND THEN THAT FINAL INCREASE OF 2.9 CENTS WOULD REPRESENT AN ADDITIONAL 95 ANNUAL, WHICH IS ABOUT $8 PER MONTH BASED ON MY HOME VALUE. SO JUST SOMETHING. BUT I JUST WANTED TO SHARE. I'M KIND OF STRUGGLING WITH THE MATH AT THIS POINT BECAUSE OF THE BPP
SITUATION. >> ONE THING I WOULD JUST NOTE IN RESPONSE TO THAT IS THE BPP IS GOING TO LOWER BOTH THE NO EXTENSION TIMELINE AS WELL AS THE EXTENSION TIMELINE REALLY PROPORTIONALLY. AND SO IF YOU THINK ABOUT, YOU KNOW, JUST AS YOU THINK ABOUT WHICH WAY TO GO, THE WITHOUT THE BPP, YOU COULD THINK ABOUT THIS BEING $0.27 GOING TO $0.28 ON NOT EXTENDING.
AND THEN ON THE EXTENSION, IT WOULD LEVEL OUT, YOU KNOW, AT $0.25 OR, YOU KNOW, WHATEVER THAT PROPORTIONAL INCREASE IS. SO EVEN IF THERE WERE TO BE A CHANGE IN THE BPP, IT WOULD IT WOULD FALL SOMEWHERE, YOU KNOW, PROPORTIONALLY WITHIN THESE TWO, THESE TWO COLUMNS. YEAH.
>> OKAY. YES. COUNCILMAN PERRY THANKS. >> YEAH. I THINK ANOTHER CONCERN I HAVE TO TAG ON TO THAT IS BY PUSHING THESE OUT FURTHER AND FURTHER. WE ALSO HAVE TO BE HONEST WITH OURSELVES THAT COSTS CONTINUE TO GO UP, COSTS OF GOODS, COST TO BUILD THINGS, COST TO BUY LAND. AND MY WORRY IS THE MORE WE PUSH THIS OUT, THE LESS THE LESS FAR THIS MONEY GOES. YOU KNOW, THE SHORTER WE END UP BEING ON A PROJECT. I KNOW WE HAVEN'T GIVEN DIRECTION ON THE LIBRARY AND THE SENIOR CENTER JUST YET. AND THEN THAT BRINGS ME TO MY NEXT CONCERN, WHICH IS I'M WONDERING WHY AFFORDABLE HOUSING IS PUSHED OUT OVER FIVE FROM THREE YEARS. I UNDERSTAND WHY MONEY IS BEING SHUFFLED THAT WAY. I THINK THAT WAS EXPLAINED REALLY WELL. BECAUSE I DON'T THINK WE'VE DEFINED WHAT WE WANT TO USE THE MONEY FOR, AND THE THE LANGUAGE IS VAGUE. SO IF IT WERE TO AGAIN ACQUIRE PROPERTY, IF THE FIRST ISSUANCE IS ONLY $3,300,000, WE'RE KIND OF IN A IN A PICKLE, RIGHT? IF WE'RE TRYING TO BUY
LAND FOR PER SE. DOES THAT MAKE SENSE? >> GOOD AFTERNOON. SO FOR THE AFFORDABLE HOUSING BOND PROGRAM, WE HAVE A KIND OF AN ONSET DATE LATER THIS YEAR TO DISCUSS IN DETAIL WHAT STAFF'S PLANS ARE FOR THE AFFORDABLE HOUSING BOND PROGRAM. WHAT WE'RE LOOKING AT RIGHT NOW IS THAT $300,000 FOR A DESIGN PATTERN BOOK IN THIS FIRST YEAR TO HELP DEVELOP MISSING MIDDLE INFILL HOUSING, AND THEN THE CREATION OF A CLT OVER THE PRECEDING YEARS. BUT PART OF IT IS JUST STAFF CAPACITY TO BE ABLE TO EXPEND THOSE FUNDS. THERE'S NO GREAT
[04:10:01]
WAY TO SPEND $5 MILLION IN A YEAR THAT IS NOT SUBSIDIZING LARGE MULTIFAMILY DEVELOPMENT.AND THAT'S NOT SOMETHING THAT WE'VE HEARD A LARGE INTEREST IN SUPPORTING FROM COUNCIL OR THE
COMMUNITY AT THIS POINT. >> SO. YEAH, I MEAN, I, I'M HAVING A HARD TIME EXPENDING ANY OF THE 15 MILLION WHEN WE DON'T EVEN HAVE ANY KIND OF PROGRAMS, WE DON'T HAVE ANY GUIDELINES ON WHAT WE REALLY WANT TO SPEND THAT ON. I MEAN, AFFORDABLE HOUSING IS OBVIOUSLY A BIG AND YOU'RE SAYING WE'RE COMING YOU'RE COMING BACK LATER ON THIS YEAR. SO THE COUNCIL CAN DISCUSS SOME FACTORS AND SOME PRIORITIES AND THINGS SUCH AS THAT. IS THAT CORRECT?
>> YES, SIR. AND WHAT STAFF IS KIND OF BASED OUR PRELIMINARY PLANS ON ARE COUNCIL'S APPROVED AFFORDABLE HOUSING STRATEGIC TOOLKIT THAT IDENTIFIED A PRODUCTION GOAL FOR MULTIFAMILY, WHICH WE'VE EXCEEDED IN GREAT DEAL, RIGHT. AND A PRODUCTION GOAL FOR AFFORDABLE HOME OWNERSHIP OPPORTUNITIES, WHICH STAFF HAS AS A AS A COMMUNITY OF AFFORDABLE HOUSING DEVELOPERS, WE'VE MADE NO PROGRESS ON COUNCIL'S GOALS TOWARDS. SO WE'RE FOCUSED ON TRYING TO ACHIEVE COUNCIL'S GOALS FOR AFFORDABLE HOME OWNERSHIP.
>> WELL, AND I THINK TOO, IN THIS REGARD, DEPENDING ON HOW WE EXPEND THESE FUNDS, THAT CAN EITHER BE SOMEWHAT SOMEWHAT SUSTAINABLE OR WE JUST SAY WE'RE GIVING THIS MONEY AND WHEN IT'S DONE, IT'S DONE. AND SO THAT'S, THAT'S SOMETHING I THINK WE NEED TO TALK ABOUT. SO I'M, I'M GOOD WITH THAT. I UNDERSTAND WHAT YOU'RE SAYING ABOUT WHAT ARE WE DOING? WE GOT THIS MONEY. WE'RE NOT SPENDING IT, BUT WE DON'T REALLY WE HAVEN'T MADE ANY DECISIONS ON HOW TO SPEND IT. SO I'M GLAD THAT THAT'S COMING FORWARD. AS FAR AS THE EXTENSION OF THE TIMELINE, I'M IN FAVOR OF THAT. I UNDERSTAND ABOUT THE POTENTIAL COST INCREASES, BUT WE STILL HAVE SOME MAJOR DISCUSSIONS ABOUT THE LIBRARY AND ABOUT THE ACTIVE ADULT CENTER AND THE BPP. UNDERSTAND WILL IT WON'T CHANGE IT. IT CHANGES IT PROPORTIONALLY. BUT WE DON'T KNOW EXACTLY HOW THAT'S GOING TO. I MEAN, IF ALL OF A SUDDEN IT DROPS 34. TO ME, THIS JUST BUYS US MORE FLEXIBILITY. WHEREAS NEXT YEAR, IF WE WANT TO MOVE IT UP, WE CAN DO THAT. I MEAN, INSTEAD OF EXTENDING IT FORWARD, WE CAN SAY, WELL, LET'S JUST START IT THIS YEAR. BUT THOSE ARE MY THOUGHTS. JUST FLEXIBILITY. UNCERTAINTY WITH THE BPP.
CERTAINLY NOT KNOWING EXACTLY HOW WE'RE GOING TO DO THE ACTIVE ADULT CENTER, WHETHER IT'S GOING TO BE CO-LOCATED OR WHETHER IT'S GOING TO BE LOCATED SOMEWHERE ELSE, OR WHETHER IT'S GOING TO BE AT THE SAME PLACE WHERE WE COUNCIL HASN'T REALLY GIVEN ANY DIRECTION ON THAT. SO I'D HATE TO. ANYWAY, THOSE ARE THOSE ARE MY THOUGHTS. I DON'T HAVE ANY PROBLEM WITH EXTENDING IT, AT LEAST ON THIS SNAPSHOT. THAT DOESN'T MEAN THAT WE CAN'T COME BACK MY UNDERSTANDING AND MODIFY THAT IF IF CIRCUMSTANCES CHANGE AND DATA PROVES SOME OTHER DIRECTION IS MORE PRODUCTIVE THAN WE CAN DO THAT. OKAY, YES.
>> I CAN ALIGN WITH EVERYTHING YOU JUST SAID. I HAD THE SAME THOUGHT OF. YOU KNOW WHAT IF WE START OFF WITH THE EXTENDED VERSION AND THEN SOMETHING CHANGES, WE SEE WHAT BPP DOES AND THEN WE CAN MAKE A DIFFERENT DECISION NEXT TIME. MY, MY ONE QUESTION WAS, DO WE ACTUALLY REALLY HAVE A CHOICE ON A COMPRESSED TIMELINE FOR ACTIVE ADULT CENTER LIBRARY? BECAUSE WE HAVEN'T MADE THAT DECISION YET. IS THAT A QUESTION? MAYBE. LIKE, REALISTICALLY, COULD WE EVEN DO THE, THE COMPRESSED OR THE INITIALLY PLANNED TIMELINE,
GIVEN THAT WE DON'T REALLY KNOW WHAT WE'RE DOING YET? FOR SURE. >> YEAH. SO GOOD AFTERNOON.
GARCIA, DIRECTOR OF CAPITAL PROJECTS. I'M GOING TO CLICK BACK A COUPLE SLIDES HERE. SO ESSENTIALLY WHAT THIS WOULD LOOK LIKE IS IF WE SOLD ALL THE FUNDING IN FY 2627, WE WOULD START OUR DESIGN PROCESS FOR EITHER ONE OF THOSE FACILITIES THAT YOU JUST SAID, THE ACTIVE ADULT OR SOUTH BRANCH LIBRARY OR A JOINT FACILITY. WE WOULD LOOK AT PROBABLY 15 TO 18 MONTHS FOR DESIGN AND PERMITTING TO GET INTO CONSTRUCTION. SO HIGH LIKELIHOOD WE WOULD BE SELLING DEBT TO START CONSTRUCTION IN FY 2728. WE ARE WORKING CLOSELY WITH FINANCE TO MORE CASH FUND THESE PROJECTS TO ALIGN A LITTLE CLOSER WITH OUR BUDGET CYCLE. SO WE'RE NOT SELLING THE DEBT BEFORE WE NEED IT. SO LIKELY WITH JUST THE FIRST TIMELINE, IT WOULD BE EXTENDED ONE YEAR. IN THE PROPOSED SCENARIO, I DID WANT TO POINT OUT. SO WE DO KIND OF HAVE THAT GAP YEAR IN 2829 THAT WE'RE ANTICIPATING FINISHING DESIGN.
SO DEPENDING UPON WHEN WE ACTUALLY START OR GET DIRECTION FROM COUNCIL FOR CONCEPTS OF SITE EVALUATION, WHICH IS REALLY WHAT THAT KIND OF QUARTER OF $1 MILLION FOR IS IN THIS NEXT COMING YEAR, THAT WOULD ALLOW US TO THEN PROGRESS INTO THE DESIGN PHASE AND THEN READJUST THE CONSTRUCTION BASED OFF OF HAVING OUR SUMMER ON BOARD AND LOOKING MORE AT A
CASH FLOW OF THOSE PROJECTS. >> OKAY. I THINK THAT EXPLAINS. THANK YOU.
>> OKAY. >> ANY QUESTIONS? COMMENTS? DID DID WE GIVE DIRECTION? I KNOW WE TALKED ABOUT EXTENDING IT BASED UPON THE SAVING OF A $0.01 ON THE DEBT RATE SIDE,
[04:15:06]
BUT THAT WAS BEFORE ANY OF THESE OTHER CONDITIONS WITH THE BP. SO IS THAT STILL THE COUNCIL'S DIRECTION IS TO EXTEND IT FOR NOW AND THEN IF THINGS CHANGE, WE CAN ALWAYS REVISIT IT, IS THAT I JUST WANT TO MAKE SURE THAT STAFF HAS THE DIRECTION THEY NEED. SO OKAY, ANYBODY HAVE AN OBJECTION TO IT? NO OBJECTION. ANYBODY HAVE AN OBJECTION? OKAY, OKAY. I JUSTWANT TO GIVE PEOPLE A CHANCE TO, TO TO. >> SPEAK IN FAVOR.
>> OKAY. ALL RIGHT. OKAY. ALL RIGHT. THEN YOU HAVE YOUR DIRECTION ON THAT. OKAY. THANK YOU. AND AGAIN, WE CAN CHANGE IN MIDSTREAM IF WE NEED TO. SO THAT'S THE GREAT THING ABOUT
FLEXIBILITY. JUST A FEW MORE SLIDES. >> JUST A LITTLE BIT FURTHER.
>> AND THEN A COUPLE OF CLOSED SESSIONS FURTHER. >> ALL RIGHT. WE'RE ROUNDING A CORNER. SO WE'RE GOING TO SHIFT GEARS TO COUNCIL FOCUSED DISCUSSIONS ON THE REMAINING GENERAL FUND ALLOCATION. WE HAVE 796 320 AVAILABLE IN THE GENERAL FUND AS A PLACEHOLDER FOR COUNCIL PRIORITIES. THIS IS AN AMOUNT YOU CAN ALLOCATE TOWARDS NEW INITIATIVES WITHOUT IMPACTING THE OVERALL BALANCE OF THE GENERAL FUND, BECAUSE AGAIN, IT'S ALREADY BAKED INTO THE NUMBERS. THIS SLIDE OUTLINES COUNCIL ACTION ITEMS, TWO MINUTE PITCH PROPOSALS THAT WERE FLAGGED FOR DISCUSSION IN THIS YEAR'S BUDGET PROCESS THAT YOU MAY WANT TO INCLUDE. EACH ONE OF THESE HAS AN ANNUAL COST ASSOCIATED WITH IT, AND EACH OF THESE ALSO REPRESENTS ONGOING COSTS TO THE GENERAL FUND. SO I'M GOING TO TURN THIS OVER TO YOU FOR DISCUSSION ON WHAT YOU
WOULD LIKE TO SEE INCLUDED. >> OKAY. SO LET ME MAKE SURE LET ME MAKE SURE I UNDERSTAND THIS. SO THIS 2762288. THAT'S JUST THE ALL THESE ADDED UP. IS THAT RIGHT? THE 2 MILLION.
SORRY. YES. SORRY. SORRY SORRY SORRY. YES. 2.75. >> THAT IS WHAT THOSE ITEMS
HAVE TOTALED UP TO. THE AVAILABLE AMOUNT IS 7.963 20. >> OUT OF THAT 72.757 OKAY.
COUNCIL MEMBER, JUST. >> JUST A CLARIFICATION QUESTION. THERE HAVE BEEN TIMES TODAY THAT WE HAVE TABLED SOME THINGS SAYING THAT THERE MAY BE SOME MONIES. IS THIS IT? SO ANYTHING ELSE AS FAR AS THE IN-KIND DONATIONS OR CASH DONATE? SO I JUST WANTED TO MAKE SURE THAT WHEN WE DISCUSS IT, WE'RE DISCUSSING EVERYTHING THAT WE INTENDED TO DISCUSS. SO THAT'S CORRECT. OKAY. THANK YOU. WE CAN PROCEED. I JUST WANT TO CLARIFY.
>> YES. COUNCIL MEMBER RUMOHR. >> BEFORE WE KEEP GOING, I ALSO WANTED TO CLARIFY. SO WE'RE TALKING 101. WELL, I KNOW WE'RE 1320 OF THAT IS COMING FROM. BUT FOR THE OTHER 800,000, BECAUSE WE DO HAVE TWO ONGOING. WELL, I MEAN, THERE'S REALLY THREE ONGOING COSTS HERE. I KIND OF WANT TO UNDERSTAND WHERE THIS 800,000 IS COMING FROM, BECAUSE I'VE SAID PREVIOUSLY, I HESITATE THAT ANY SPIKE CAUSED BY BP IS NOT FUNDING ONGOING COSTS LIKE POSITION. SO I JUST WANT TO UNDERSTAND WHERE THE 800,000 IS COMING FROM.
>> AND YOU CAN CORRECT ME IF I'M WRONG, BUT I THINK IT'S THE NEW VALUE. SO IT'S IT'S IT'S
THE BPP ESSENTIALLY. >> IT IS BPP BASICALLY. YES. OKAY. THAT MAKES JUST AS A REMINDER, BPP CAN GO LIKE IF THIS FACILITY GOES AWAY, THAT VALUE GOES AWAY. SO IF IT GOES AWAY AND WE'RE FUNDING SALARIES WITH THAT, THAT MAKES ME A LITTLE BIT NERVOUS.
>> SO I WANT TO MAKE SURE WHAT I JUST HEARD. THAT THERE'S $800,000 HERE. AND IS THAT COMING OUT OF THE. IT'S BEING FUNDED FROM, QUOTE UNQUOTE, THE NEW VALUE, WHICH NEW VALUE IS THE 1.9 PLUS? I THINK IT WAS 1.2 WAS BPP AND THEN 700,000 WAS OR 700 MILLION WAS THE MADE UP THE DIFFERENCE? YEAH. FROM THE VERY FIRST SLIDE. YES. OKAY. SO IF IT'S IF IT'S 700 MILLION NEW VALUE THAT IS NOT BPP OKAY. RIGHT. SOMEBODY DO THE MATH FOR ME. $0.62 ON 700 MILLION. WHAT IS THAT. IS THAT $400,000 $400,000. OKAY. SO THAT'S MONEY. THAT IS IS ONGOING. ALL RIGHT.
[04:20:07]
SO IT'S ALMOST ABOUT HALF OF WHAT THAT REPRESENTS IS ONGOING. OKAY. I JUST, I JUST WANTED TO MAKE SURE BECAUSE I, I HEAR WHAT YOU'RE SAYING COUNCIL MEMBER MORE ABOUT WE DON'T WANT TO, BUT SOME OF THAT IS FUND IS IS AVAILABLE AT LEAST IT'S, IT'S GOING TO BE AN ONGOING FIGHT AND IT COULD DROP. I MEAN, ALL OF OUR ASSESSED VALUES COULD DROP. I MEAN, IT'S NOT JUST BPP. I MEAN, IT COULD BE. I MEAN THE VALUES I THINK WENT UP WITHOUT THE BPP MAYBE 2.75% OVER LAST YEAR IF I REMEMBER CORRECTLY. WELL, THAT'S IF YOU LOOK AT A GRAPH IT'S GOING THE WRONG DIRECTION. I MEAN SO NEXT YEAR IT MIGHT VERY WELL BE UNDER EVEN WITHOUT THE BPP. SO OKAY, THAT THAT THAT'S HELPFUL FOR ME TO UNDERSTAND EXACTLY WHAT'S GOING ON HERE. SO OPEN UP THE FLOOR FOR DISCUSSION. I'LL TELL YOU WHAT. LET'S DO THIS. WE TALKED EARLIER ABOUT THE COUNCIL SPONSORSHIP AND THE CASH FUNDING. AND I THINK THIS IS WHERE, MADAM CITY MANAGER, YOU SAID IF WE WANT TO GO FROM 200, WHICH IS WHAT WAS APPROVED LAST YEAR, IF WE WANTED TO INCREASE THAT, WHICH WOULD BE AN ONGOING EXPENSE, UNLESS, LIKE WE'RE DOING HERE, WE CHANGE THAT SOMEWHERE DOWN THE LINE. FOR WHATEVER REASON, THIS IS WHERE WE'D WANT TO DO IT. SO THAT 100,000, WHATEVER IT WOULD BE, WHATEVER COUNCIL DECIDED ON, IF ANYTHING WOULD BE COMING OUT OF THAT. 796 OKAY. ALL RIGHT. SO I JUST WANTED TO LAY THAT ALL OUT THERE ON THE TABLE SO THAT WE HAVE ALL THE DIFFERENT OPTIONS THAT ARE AVAILABLE. SO I OPEN IT UP. YES. COUNCILMEMBER RUMOHR. >> GIVEN THE 400 K IS THE WE'LL CALL IT THE STABLE VALUE, EVEN THOUGH IT'S TRULY NOT STABLE. AND YOU'RE CORRECT, IT MAY GO DOWN. THAT STABLE VALUE COULD DECREASE NEXT YEAR. I MEAN, MY OWN HOME VALUE IS KIND OF STARTING A DOWNWARD TREND. WHEN I ADDED UP THE ETHICS ORDINANCE, THE TWO LIEUTENANTS AND WOMAN'S CLUB BUILDING, I GOT 383.6 THOUSAND. AND SO THAT'S BELOW THE 400 K. SO LOOKING AT THAT, IT SEEMS LIKE WE HAVE WHAT WE NEED TO DO. THE ETHICS ORDINANCE, EMS AND BOTH EMS LIEUTENANTS. AND THEN OF COURSE
THE WOMAN'S CLUB IS FROM RENTAL REVENUE. >> SO I JUST WANT TO CLARIFY, WE DID REMOVE THE ETHICS ORDINANCE ITEM FROM THIS LIST BECAUSE WE GOT DIFFERENT DIRECTION FROM THE AGENDA COMMITTEE TO GO AHEAD AND PUT THAT IN THE INTERNAL AUDITORS BUDGET. SO IT'S ALREADY FUNDED IN THE INTERNAL AUDIT BUDGET. OKAY. RIGHT.
>> I HADN'T ACTUALLY LOOKED AT THE THE SLIDE ON THE SCREEN. SO IT SOUNDS LIKE WE HAVE THE MONEY FOR THE TWO EMS LIEUTENANTS IS WHAT I FEEL LIKE I'M HEARING. AND IT'S NOT COMING FROM THE MORE VOLATILE REVENUE SOURCE. THAT'S WHAT I FEEL LIKE I'M SAYING. YEAH.
>> OKAY. ALL RIGHT. OKAY. ANY THOUGHTS OR INPUT ON THAT OR ANYTHING? I MEAN, WE THIS IS YES, COUNCILMEMBER, I'M GOING TO GO HERE AND THEN COME BACK. OKAY. COUNCILMEMBER GESTURE NO, NO, I'M NOT LIKE AN INSECT. MY EYES DON'T GO IN DIFFERENT DIRECTIONS.
>> SO SORRY. >> EVEN THOUGH SOME PEOPLE CALL ME VARIOUS NAMES, BUT THAT'S.
>> ALL RIGHT. NO PROBABLY NOT. NO. JUST KIDDING. I'M TOTALLY KIDDING. SORRY. WE'VE ALL BEEN HERE AND I'VE HAD COFFEE AND DIET COKE, SO IT'S A GREAT DAY. SO. OKAY. THE TWO EMS LIEUTENANTS. I CAME UP WITH A 377,320 ETHICS ORDINANCES OUT, OBVIOUSLY, AS FAR AS WHAT IS LEFT OVER, I DON'T KNOW WHAT KIND OF IMPACT ON THE FIRE PENSION RACE COULD BE MADE THUS FAR. WHAT I WOULD JUST GIVE SOME DIRECTION THAT WE DO CREATE THESE TWO EMS LIEUTENANT POSITIONS WITH THE. BECAUSE I THINK THE 796,320. THAT IS ACTUAL UPDATED AMOUNT DIVIDED BY TWO IS 398,160. SO WHAT WE THINK IS GOING TO BE PERPETUAL IS ENOUGH TO COVER THESE CONTINUING OBLIGATIONS. AS FAR AS THESE TWO NEW POSITIONS. AND THEN AFTER THAT, I WOULD LIKE TO CONSIDER ADDING SOME MORE BACK INTO OUR SPONSORSHIPS, WHATEVER THAT MEANS. IF WE WANT TO COME UP WITH A SET AMOUNT AND THEN DISCUSS FURTHER AT ANOTHER COUNCIL MEETING, AS FAR AS WHERE THAT GOES, IF IT'S ACROSS THE BOARD A CERTAIN AMOUNT OR TO SPECIFIC ORGANIZATIONS, THAT'S A CONVERSATION FOR ANOTHER DAY. BUT AT LEAST AS FAR AS MY MY
INITIAL REACTION WOULD BE THOSE WOULD BE PRIORITIES FOR ME. >> OKAY, MAYOR PRO TEM.
[04:25:06]
>> YEAH, I'M WITH COUNCIL MEMBER JESTER ON THAT. LET'S FUND THOSE TWO POSITIONS. I'M BIASED ON THAT. AND, AND, AND I GUESS ON OUR NEXT COUNCIL MEETING, WE COULD HAVE A DISCUSSION ABOUT THOSE SPONSORSHIPS. I THINK IT'S REALLY IMPORTANT THAT WE SEE
WHAT WE CAN DO THERE. >> OKAY. YES. COUNCILMEMBER HOLLAND.
>> I. >> I CONCUR TWO TWO EMS LIEUTENANT POSITIONS AND, AND
SET THE THE DISCUSSION FOR THE SPONSORSHIP. >> OKAY. ANYBODY ELSE? ALL
RIGHT. >> I'LL JUST ADD MY VOICE TO CONTINUING TO TALK ABOUT SPONSORSHIPS BECAUSE THAT'S DIFFERENT THAN SALARIES. SO YEAH, SURE.
>> YEAH. YEAH. BECAUSE IT CAN, WE CAN CHANGE THAT. SO THAT THEN SO THAT WILL BE AT THE DISCUSSION NEXT TIME. SO FROM WHAT I'M HEARING, AT LEAST FOR NOW IN THE BUDGET COUNCIL WOULD LIKE TO ADD THE TWO EMS LIEUTENANTS. AND THEN IF DEPENDING ON THE CASH SPONSORSHIP AND ALL THAT, IF WE STILL THINK WE WE HAVE A LITTLE MONEY LEFT OVER WHICH $400,000, I MEAN, DEPENDING ON WHAT THE NEEDS ARE AND THE PRIORITIES. I'M PERSONALLY NOT TOO CONCERNED ABOUT THAT WITH BPP FUNDING, BECAUSE THEY'RE NOT GOING TO COME IN AND SLASH IT 60%. SO WE HAVE SOME TIME, BUT I'M CERTAINLY GOOD WITH GOING WITH THE CURRENT DIRECTION AND HAVING SOME LATER DISCUSSION. IS THAT SUFFICIENT DIRECTION FOR FOR YOU, AT LEAST AT THIS
POINT ON THOSE? >> I THINK SO I JUST WANT TO BE CLEAR ON WHERE WE'RE LANDING ON THE WOMEN'S BUILDING LEASE RENTAL REVENUE. I JUST DIDN'T HEAR ANYTHING ABOUT THAT. SO I
WANT TO MAKE SURE. >> I GUESS MY QUESTION ON THAT WOULD BE TIMING ON THINGS, BECAUSE I WHICH I KNOW MY PROPOSAL WAS TOO LATE TO REALLY INCLUDE IT IN THIS BUDGET WORKSHOP, BUT THE DISCUSSION OF A QUAKER TOWN MEMORIAL FUND, OBVIOUSLY, THAT DOESN'T EXIST YET. AND THAT WOULD BE WHERE I WOULD PROPOSE IT WOULD GO. SO I'M NOT SURE IF THERE'S A WAY TO HOLD THAT UNTIL WE HAVE THOSE DISCUSSIONS OR KIND OF WHAT ROUTES WE HAVE THERE.
>> YEAH, WE CAN WE CAN PLACE HOLD IT UNTIL THE DISCUSSION. AND THEN WE COULD EITHER, YOU KNOW, CREATE A SEPARATE FUND OR WE CAN PUT IT IN A SPECIFIC ACCOUNT.
>> OKAY, OKAY. >> YEAH. >> YES.
>> COUNCILMEMBER HALL, CITY MANAGER, I DON'T KNOW. I MEAN, I NEED SOME CLARIFICATION.
WOMEN'S BUILDING LEASE, RENTAL REVENUE. AND THAT'S A COST. >> IT'S MY UNDERSTANDING THAT IT WOULD BE TAKING THE REVENUE AND PUTTING IT INTO A SEPARATE ACCOUNT TO USE IT AT A LATER
DATE FOR A POTENTIALLY A MEMORIAL OF SOME KIND. YEAH. >> CITY MANAGER OGDEN IS CORRECT. WHEN WE DID THE LEASE ON MAY 5TH, WE'LL BE RECEIVING ANNUAL RENT FROM THE WOMEN'S CLUB, $1,320. SO WE NEED TO BUDGET FOR WHERE THE EXPENSE WOULD GO. AND OUR RECOMMENDATION WAS FOR COUNCIL TO DECIDE THAT DURING THE BUDGET PROCESS. SO THIS IS
WHERE YOU WOULD LIKE THAT RENTAL REVENUE TO GO ANNUALLY. >> OKAY. OKAY. THANK YOU.
>> YEAH. I THINK WHAT WE'RE HEARING IS THAT THERE HAS BEEN A TWO MINUTE PITCH MADE TO TALK ABOUT THAT. SO, I MEAN, IT CAN JUST SORT OF STAY THERE UNTIL WE MAKE A DECISION. IF IF WE MOVE FORWARD WITH IT, THEN WE HAVE AN ALLOCATION. IF WE DON'T, IT JUST GOES INTO THE GENERAL FUND. IS THAT CORRECT? THE FUND BALANCE? OKAY. ALL RIGHT. OKAY. ANYTHING ELSE ON THIS SLIDE?
OKAY. >> AND NEXT UP, WE TOLD YOU ABOUT THE $1 MILLION PLACEHOLDER FOR ECONOMIC DEVELOPMENT. THESE ARE OUR RECOMMENDATIONS ON HOW WE MOVE FORWARD WITH THAT. WE ALSO HAVE A LINE ITEM AROUND WHAT WE NEED TO BE DOING WITH OUR EXPIRING INCENTIVES. SO WE OPEN UP THIS FOR DISCUSSION ON DIRECTION FOR THAT MILLION DOLLARS.
>> OKAY. YES. COUNCIL MEMBER JESTER. >> HI. WHAT IS THE MAYOR'S
WORKFORCE AND EDUCATION TASK FORCE? >> YOU HAVEN'T HEARD ABOUT THAT? I'M JUST KIDDING YOU. I HEARD ABOUT IT ABOUT TWO DAYS AGO. SO GO AHEAD. YES.
>> SO THIS IS SOMETHING THAT WAS RECOMMENDED DURING OUR ECONOMIC DEVELOPMENT PARTNERSHIP BOARD RETREAT AS. AND WE LEARNED THAT OTHER CITIES. THIS IS SOMETHING THAT THEY'RE DOING TO PROMOTE WORK, PROVIDING OPPORTUNITIES FOR THEIR RESIDENTS. AND SO WE HEAR A LOT ABOUT HOMELESSNESS AND AFFORDABLE HOUSING HERE, BUT WE'RE NOT NECESSARILY TALKING ABOUT PROVIDING JOB OPPORTUNITIES FOR THOSE RESIDENTS. AND SO THIS TASK FORCE WOULD REALLY BRING TOGETHER A LOT OF OF EDUCATION PARTNERS, OF COURSE, AND OUR WORKFORCE PARTNERS TO REALLY JUST CARRY A DEEPER CONVERSATION. THE CITY OF PLANO HAS AN INTERNSHIP PROGRAM WHERE THE MAYOR, I THINK HE GETS TO PICK TWO INTERNS AND THEY PAY FOR THEIR INTERNSHIPS TO FOR A LOCAL EMPLOYER. AND THEN THE CITY OF FORT WORTH RECENTLY
[04:30:06]
CREATED A TASK FORCE TO WHERE MAYOR MADDIE PARKER IS FOCUSING ON UPSKILLING THEIR WORKFORCE, THE CITY OF SAN ANTONIO. A FEW YEARS AGO, THEY DESIGNATED A PORTION OF THEIR SALES TAX DOLLARS FOR WORKFORCE TRAINING. AND SO WE JUST THINK THIS IS A GOOD IDEA BECAUSE THIS WOULD REALLY PROMOTE CITY COUNCIL, HELP LOCAL GOVERNMENT LEADERS TO REALLY GET INVOLVED WITH WORKFORCE DEVELOPMENT. SO IF WE'RE TALKING ABOUT AFFORDABILITY OR HOMELESSNESS,THEN THIS WOULD BRING IT ALL TOGETHER. >> SO AND LET ME SAY, WHEN I SAW THAT, IT'S LIKE, IT DOESN'T NEED TO BE THAT IT CAN BE THE COUNCIL. I MEAN, I USED TO HAVE A MAYOR'S SUMMER INTERNSHIP PROGRAM AND SOMEHOW THAT GOT TRUNCATED. I DON'T CARE, THIS ISN'T ABOUT ME WANTING TO HAVE THE MAYOR'S NAME ON SOME PROGRAM. I THINK WHAT WE SAW YESTERDAY, I THINK IN THE THE CHAMBER ECONOMIC DEVELOPMENT BREAKFAST INVESTMENT BREAKFAST, TALKING ABOUT WORKFORCE COLLABORATION BETWEEN THE TWO UNIVERSITIES. AND NORTH TEXAS HAS AN INCUBATOR TO REALLY HELP FACILITATE THAT. SO THAT'S ALL THAT IS. WE CAN SAY THE COUNCIL WORKFORCE AND EDUCATION TASK FORCE. SO I THINK THAT'S ALL THAT IS.
>> I'M VERY FIRST OF ALL, I WANT TO SAY I'M VERY >> EXCITED TO SEE THE CERTIFIED SIGHTS PROGRAM MOVING FORWARD. THAT WAS SOMETHING THAT THE BOARD PUT, AS YOU KNOW, RIGHT UP TOP AS FAR AS WHAT WOULD BE HELPFUL FOR OUR CITY TO HAVE. SO I'M VERY HAPPY ABOUT THAT.
MARKETING AND RECRUITMENT PROGRAM ENHANCEMENT. I UNDERSTAND THERE'S ALWAYS MORE
THAT CAN BE DONE THERE. AS FAR AS THE CHRIS WATTS WORKFORCE. >> AND THAT'S RIGHT.
>> AND WOW IS IS THE IMPLEMENTATION, WHETHER THAT BE INTERNSHIPS OR EDUCATION, IS THAT SOMETHING THAT'S GOING TO BE DIRECTED BY THE ECONOMIC DEVELOPMENT PARTNERSHIP BOARD
OR CHRIS WATTS AS THE CHRIS. WATTS WORKFORCE AND EDUCATION. >> I THINK IT WOULD BE DIRECTED BY CITY COUNCIL, BUT MANY MEMBERS OF THE BOARD WOULD BE INCLUDED FOR SURE.
>> OKAY. AND THEN CAN YOU JUST TALK A LITTLE BIT ABOUT THE ACCELERATOR PROGRAM TO SUPPORT RETAIL, RESTAURANTS AND FILM? WHAT I WHAT I DON'T WANT TO GET INTO IS MAYBE WHAT WE'RE SEEING AS FAR AS DIFFERENT SPONSORSHIPS AND IN KIND OF LIKE, WHO GETS WHAT FAVORITISM, BLAH, BLAH, BLAH. CAN YOU JUST TALK A LITTLE BIT ABOUT WHAT THAT $60,000, HOW IT WOULD BE
ADMINISTERED, IF YOU DON'T MIND? >> SURE. WELL, WE HAD AN OPPORTUNITY TO APPLY THROUGH THE MAIN STREET PROGRAM EARLIER THIS YEAR THROUGH THE STATE FOR AN ACCELERATOR PROGRAM. AND SO IT WOULD REQUIRE A MATCHING FUND AS WELL TO SUPPORT IT. AND SO MAIN STREET SPECIALIZES IN JUST DOWNTOWN COMMERCE. SO THERE'S DIFFERENT ACCELERATOR PROGRAMS ACROSS THE STATE AND THE US. AND WE REALLY WANT TO FOCUS ON GROWING SOME OF OUR SMALL BUSINESSES, ESPECIALLY WITH OUR ARTISTS AND WHETHER THAT'S RETAIL OR FILM. WE WANT TO PARTNER WITH A VENDOR THAT SPECIALIZES IN THOSE, AND THEN IT WOULD PROBABLY BE A SIX WEEK PROGRAM OR SIX. IT COULD BE A SIX WEEK TO SIX MONTH PROGRAM, WHO KNOWS. BUT WE WOULD LOOK AT POTENTIALLY FACILITATING OR GETTING A FACILITY AND THEN PLACING THOSE VENDORS THERE SO THAT THEY CAN ACTUALLY GET REAL LIFE EXPERIENCE. AND SO THAT WOULD BE SPECIFICALLY FOR RESTAURANTS. AND THEN FOR FILM, WE COULD ALSO MAYBE LOOK AT ANOTHER VENUE THAT WOULD SUPPORT THOSE TYPES OF INDIVIDUALS THAT ARE IN THAT INDUSTRY. SO WE STILL NEED TO DO EXPLORE A LITTLE BIT, BUT WE KNOW $60,000 PROBABLY WILL GET US THERE TO IMPLEMENT A GOOD PROGRAM.
>> OKAY. I'M GOING TO SAY IN, IN MY OPINION, THAT'S KIND OF OUTSIDE OF WHAT I THINK IS THE BEST BANG FOR OUR BUCK AS FAR AS CREATING SOMETHING LIKE THIS NEW. I WOULD BE IN FAVOR OF THE CHRIS WATTS WORKFORCE EDUCATION TASK FORCE, CALLOUS FUNDS TRANSFER MARKETING, RECRUITMENT PROGRAM, ENHANCEMENT CERTIFIED SITES PROGRAM, AND I WOULD PUT THE REST TOWARDS THE CATALYST FUND TRANSFER. I THINK I THINK WE NEED A LOT MORE THAN 665,000 A YEAR. SO THAT THAT WOULD BE
MY INPUT. >> OKAY. THANK YOU. >> YES. COUNCIL MEMBER HOLLAND.
>> I'M. I'M NOT. I'M JUST NOT QUITE UNDERSTANDING THE ACCELERATOR PROGRAM FOR RETAIL
RESTAURANT. I'M JUST NOT. I JUST DON'T SEE THAT. >> FOR RESTAURANTS IN PARTICULAR, THEY HAVE A TON OF RAW MATERIAL COSTS. AND SO THERE'S CONTRACTORS IN THE U.S. THAT SPECIALIZE IN HELPING RESTAURANTS ONE ON ONE WHERE THEY'RE EVALUATING THE RAW MATERIALS, THEY'RE EVALUATING THEIR FINANCIAL STATEMENTS. AND SO WE WANT SOMEONE TO COME IN AND HELP THEM PUT ALL THE PIECES TOGETHER SO THAT THEY CAN BE SUCCESSFUL WITH POTENTIALLY OPENING A FOOD TRUCK OR POTENTIALLY OPENING A BRICK AND MORTAR. AND SO OUR HOPE IS THAT MAYBE WE COULD SUPPLY A FACILITY FOR RESTAURANTS TO RENT A LITTLE BOOTH, POTENTIALLY $200 A MONTH. THAT'S JUST AN ESTIMATE, BUT SOMETHING AFFORDABLE WHERE THEY COULD ACTUALLY GET THEIR START. THERE'S A LOT OF ENTREPRENEURS IN THE CITY OF DENTON, AND SO WE WANT TO BE ABLE TO SUPPORT THEIR DREAMS BECAUSE STARTUP COSTS FOR STARTUPS, IT'S VERY EXPENSIVE, RIGHT? SO THAT'S WHERE THE ACCELERATOR PROGRAM
[04:35:04]
WOULD HELP. >> OKAY. WALK ME THROUGH THE SPOT. IT'S $200 A MONTH. WHAT
WHAT DOES IT LOOK LIKE? HOW BIG IS IT? WHAT DOES IT LOOK LIKE? >> WE WOULD HAVE TO HELP WITH THE BUILD OUT. AND WE CAN LOOK AT GRANTS OR SPONSORSHIP FUNDING. AND SO I HAVE A BUILDING IN MIND. I DON'T WANT TO SAY IT OUT LOUD BECAUSE THE OWNERS MAY THEY'RE WORKING WITH US, BUT WE WOULD LOOK AT VACANT BUILDINGS TO ACTIVATE. AND THEN POTENTIALLY, IF IF THEY END UP LEASING THAT FACILITY OUT IN A YEAR OR TWO, WE'D LOOK AT ANOTHER FACILITY TO ACTIVATE.
SO SIMILAR TO LIKE A COMMUNITY MARKET. >> AND, AND THAT CAN BE HAD FOR
$200 A MONTH. >> WE'D HAVE TO RUN THE, THE FINANCIAL ANALYSIS. BUT THAT'S THE GOAL IS TO MAKE IT AFFORDABLE. I JUST USE AS AN EXAMPLE.
>> OKAY. COULD COULD YOU GO OVER CERTIFIED SITES, PLEASE? JUST GIVE ME A BETTER IDEA
ABOUT THAT, PLEASE. >> SO THIS CERTIFIED SITES PROGRAM WOULD ALLOW US TO WORK WITH PROPERTY OWNERS TO MAKE THEIR GREENFIELD SITES SHOVEL READY. AND SO WE'RE LOOKING AT FUNDING POTENTIALLY PHASE ONE ENVIRONMENTAL REPORTS THROUGH A INDIVIDUAL ENGINEERING FIRM, WHETHER THAT'S SOMETHING THAT THE CITY MANAGES OR AN OUTSIDE CONTRACTOR TO ASSIST. BECAUSE WHAT THAT DOES IS IT'S EASY FORS THAT ARE WANTING TO MOVE IN REALLY QUICKLY. PHASE ONE ENVIRONMENTAL REPORTS WILL HELP THEM BETTER UNDERSTAND WHAT THEY'RE GETTING THEMSELVES INTO FOR GREENFIELD SITE. AND SO IDEALLY, WE'D WANT TO DO LIKE A FULL PROGRAM. BUT I KNOW THAT WE DON'T NECESSARILY HAVE THE FUNDING TO BUILD OUT INFRASTRUCTURE FOR SITE, BUT
THE PHASE ONE ENVIRONMENTAL REPORT IS A GOOD START. >> OKAY.
>> AND THOSE RANGE PROBABLY 3 TO $10,000 FOR THOSE REPORTS. >> OKAY. THANK YOU.
>> THANK YOU, COUNCILMAN PERRY. >> THANK YOU. AND IN YOUR WORK SESSION THAT YOU GAVE A COUPLE WEEKS AGO, THE LAST TIME I SAW YOU HERE, FRIEND. CERTIFIED SITES. THE HOPE IS THAT BY MAKING THEM MORE SHOVEL READY, WE'RE MORE ADVANTAGEOUS IN TERMS OF ECONOMIC DEVELOPMENT.
WHEN PEOPLE WANT TO COME HERE, RIGHT. FOR SPECIFIC TYPES OF USES, ESPECIALLY.
>> YES, WE'RE ABLE TO AT LEAST INFLUENCE THAT PROPERTY OWNER TO RECRUIT OUR TARGETED INDUSTRIES, WHICH IS ADVANCED MANUFACTURING AND AVIATION AND ALL THOSE ONES.
>> LIKE TOP FIVE THAT YOU LISTED. YEAH. YES. THANK YOU. AND THEN THE ACCELERATOR PROGRAM, ESSENTIALLY WHAT YOU'RE SAYING IS YOU WANT TO BE ABLE TO BOOST THE OPPORTUNITY FOR MICRO ENTREPRENEURSHIP. YES, EXACTLY. THANKS. I WOULD LIKE TO MOVE FORWARD AS STATED.
THAT'S I GUESS IF WE'RE GIVING DIRECTION. THANK YOU. >> MAYOR PRO TEM.
>> I'M SORRY. I AGAIN NEED MORE CLARIFICATION ON WHAT WE'RE DOING WITH THE ACCELERATOR PROGRAM. I KNOW YOU'VE SAID IT LIKE FOUR TIMES NOW, BUT ARE WE USING THAT MONEY? FOR WHAT
SPECIFICALLY IS IT GOING TO? >> SURE. THAT'S A GREAT QUESTION. SO IDEALLY WE WOULD LOOK AT IMPLEMENTING A FACILITY. SO IT COULD BE POTENTIAL LEASEHOLD IMPROVEMENTS. MAYBE NOT THE FULL AMOUNT WE'RE LOOKING FOR. WE LOOK FOR SPONSORS I'M SURE. AND THEN WE WOULD ALSO LOOK AT FUNDING JUST A VENDOR SPACE FOR THOSE INDIVIDUALS. AND AND THEN THE THIRD COMPONENT WOULD ALSO BE HIRING A CONTRACTOR TO ASSIST WITH THE FACILITATION OF
TRAINING. >> I JUST WANTED TO MAKE SURE I HEARD THAT RIGHT. I THINK THAT'S A REALLY EXCITING IDEA. I THINK WE HAVE A LOT OF PEOPLE IN THE COMMUNITY THAT STRUGGLE WITH STARTING UP, BECAUSE THEY DON'T HAVE THE ABILITY TO OPEN UP A RESTAURANT. AND WE HAVE SOME GOOD FACILITIES IN TOWN WHERE WE COULD DO THAT. SO I'M INTERESTED IN HEARING MORE
ABOUT THAT, BUT I'M IN FAVOR OF ALL OF THIS. >> AWESOME. THANK YOU.
>> ANY OTHER YES, COUNCIL MEMBER, UNLESS YOU'RE GOING TO CALL IT THE CHRIS WATTS
WORKFORCE AND EDUCATION TASK FORCE. >> I THINK YOU JUST DID. THANK
YOU. THANK YOU. >> YEAH. >> I THOUGHT I HAD IS AS FAR AS INSTEAD OF OUR STAFF TAKING ON OPERATING ANOTHER FACILITY WITH ITS OWN INSURANCE STAFF TIME, ETC. I KNOW THAT OUR DENTON INDEPENDENT SCHOOL DISTRICT HAS THEIR OWN TECHNICAL COLLEGE.
THAT SUZANNE FROM THE CHESTNUT TREE IS NOW TEACHING WITH. UNT HAS A HOSPITALITY DEPARTMENT.
WE'VE GOT TWO WITH THEIR OWN CENTER FOR WOMEN ENTREPRENEURS, AND THEY PARTNER WITH STOKE THAT WE ALSO SUPPORT TO ENCOURAGE ENTREPRENEURS AND PUT ON DIFFERENT PROGRAMING FOR THAT. AGAIN, I'M JUST TRYING TO MAKE THE BEST USE OF OUR DOLLARS. I WOULD BE MORE INTERESTED PERSONALLY IN SOME KIND OF PARTNERING THAN CREATING SOMETHING ELSE FOR OUR ECONOMIC DEVELOPMENT. DEPARTMENT TO MANAGE. THAT'S MY CONCERN. I THINK WE'RE
UNDERSTAFFED. WE'RE NOT. >> JUST HIRED A NEW ECONOMIC DEVELOPMENT MANAGER, SO WE'RE GOOD TO GO. THERE'S A LOT OF MOMENTUM IN OUR DEPARTMENT. AND SO THIS IS SOMETHING THAT WE'VE BEEN ASKED PERSONALLY FOR MORE ASSISTANCE. KRISTIN PULIDO AND OUR TEAM, SHE'S OUR MANAGER.
[04:40:01]
SHE TALKS ONE ON ONE WITH OUR DOWNTOWN PROPERTY OWNERS ALL THE TIME AND BUSINESS OWNERS.AND SO WHEN THEY ASK FOR HELP, WE'RE LOGGING IT. AND SO THAT THIS IS WHERE THESE RECOMMENDATIONS ARE COMING FROM IS ACTUALLY FROM FEEDBACK FROM THOSE BUSINESS OWNERS.
>> OKAY, I HEAR YOU. AND YET WHAT I THINK IS MOST ECONOMICALLY VIABLE IS FOR US
TO PARTNER WITH A GROUP THAT ALREADY HAS A SPACE. >> YES, COUNCILMEMBER RUMOHR.
>> THIS MIGHT BE FOR FOR NEXT YEAR'S BUDGET, POTENTIALLY. BUT IF I HAD PREPARED A LITTLE MORE FOR THIS ONE OR CHATTED WITH YOU ALL OVER THE PAST YEAR, I COULD HAVE BROUGHT THIS SOONER.
BUT WHEN WE TALK ABOUT, YOU KNOW, SMALL BUSINESSES BEING ABLE TO GET STARTED AND WE TALK ABOUT THE OPPORTUNITY FOR RETAIL, RESTAURANTS, FILM ARTISTS, ALL OF THE SMALL LOCAL PEOPLE, A LOT OF TIMES THE, THE PEOPLE WHO ARE, YOU KNOW, MEGA DEVELOPERS, THEY'RE NOT REALLY NECESSARILY SUPER HONED IN ON WHAT OUR NEEDS ARE. AND, AND LIKE REALLY ADAPTIVE AND SCRAPPY. THAT'S GOING TO BE THE LOCAL PEOPLE. AND I'M AWARE THAT THERE ARE PROGRAMS TO TRAIN INCREMENTAL DEVELOPERS. SO BASICALLY LOCAL PEOPLE DOING SMALL SCALE DEVELOPMENTS WHERE THEY LIVE, THEY KNOW THE COMMUNITY. THERE WAS AN EXAMPLE OVER HERE ON MCKINNEY STREET. A HISTORIC BUILDING WAS TURNED INTO A COFFEE SHOP THAT SHARED WITH A BIKE SHOP THAT SHARED WITH A ART GALLERY, WHICH SHARED WITH A TATTOO PARLOR. ALL OF THOSE FOLKS ARE SHARING BILLS. IT'S ALLOWING THESE SMALL SCALE BUSINESSES TO MOVE IN. AND THAT WAS CREATED BY A LOCAL PERSON. THAT PROJECT WAS BUILT BY A LOCAL PERSON. SO MAYBE I'M LOOKING INTO THE FUTURE OVER THE NEXT YEAR, AND I CAN TALK WITH STAFF AND GIVE YOU MORE DETAIL ON THIS. BUT THERE ARE TRAINING PROGRAMS WHERE YOU'RE BASICALLY TRAINING LOCAL PEOPLE HOW TO DO THE DEVELOPMENT PROCESS, YOU KNOW, HOW TO DO FINANCING, ALL THAT IT TAKES TO DO A PROJECT SO THEY CAN START TO DO SOME OF THESE SMALLER PROJECTS THAT MAYBE CREATE A SMALLER, MORE AFFORDABLE SPACE FOR ARTISTS TO MOVE IN FOR MAYBE A SMALL BUSINESS. I KNOW WE KEEP TALKING ABOUT A FOOD COURT, MAYBE, YOU KNOW, JUST SOMETHING TO SORT OF TRAIN UP THESE FOLKS AND KEEP OUR WEALTH LOCAL AND NOT BE SENDING IT OUT OF THE CITY, BASICALLY. SO I GUESS
THAT'S A LONG TERM COMMENT FOR THIS TYPE OF THING. >> THAT'S REALLY HELPFUL BECAUSE THAT'S SOMETHING WE COULD INCORPORATE INTO THE ACCELERATOR PROGRAM IS LIKE, HOW DO YOU ACTUALLY GET INTO A BRICK AND MORTAR? SO THAT'S WONDERFUL. YEAH, THANKS.
>> ANYBODY ELSE? SO I WANT TO MAKE SURE. SO IT SOUNDS LIKE WE HAVE CONSENSUS FOR ALL EXCEPT COUNCIL MEMBER JESTER. YOU'RE NOT GIVING CONSENSUS FOR THE ACCELERATOR PROGRAM. IS THAT IS
THAT CORRECT? >> I'M GIVING CONSENSUS TO SOME KIND OF SUPPORT. HOWEVER, CREATING RENTING AN ADDITIONAL SPACE FOR THIS PROGRAM AT 60,000 A YEAR. I KNOW I'M NOT
IN FAVOR OF THAT. I DON'T THINK THAT'S. >> AND YOU'RE OKAY WITH THE
MAYOR'S WORKFORCE AND EDUCATION TASK FORCE. >> IF THAT'S WHAT YOU WANT TO
CALL IT. >> THAT'S WHAT IT'S CALLED. OKAY, GOOD. AND SO I GUESS ON THE TO HER COMMENT ABOUT THE 60,000 FOR RENTING A SPACE AND ALL THAT, DO THESE TYPE OF DECISIONS, WOULD THEY BE MADE AT, AT THE STAFF LEVEL, OR DO WE GET A REVIEW OF THE PROGRAM.
>> DEFINITELY GET A REVIEW. >> YES. I'M SORRY. >> YOU'LL GET A REVIEW FOR SURE.
>> OKAY. ALL RIGHT. SO WE'LL WE'LL BE ABLE TO HAVE A SAY IN IN THAT I GUESS IS WHAT YOU'RE SAYING. OKAY. ALL RIGHT. ANY OTHER QUESTIONS ON THIS? YES. COUNCILMEMBER HOLLAND.
>> FORGIVE ME AND I HOPE I'M NOT SHORTSIGHTED ON THIS. I THINK THE CERTIFIED SITES PROGRAM, THE ACCELERATOR PROGRAM. AND WITH ALL RESPECT, THE CHRIS WATTS WORKSHOP IS IS TOO IS TOO LITTLE TO AFFECT LOTS OF PEOPLE. I'M NOT GOING TO SUPPORT THOSE.
>> OKAY. ALL RIGHT. OKAY, SO LET'S SEE. WE HAVE I THINK WE HAVE FOR FOR ALL OF THOSE EXCEPT CONDITIONALLY THE ACCELERATOR PROGRAM. BUT THAT'S COMING BACK FOR REVIEW. IS THAT
CORRECT? YES. >> WE CAN DEFINITELY. >> DO THAT. OKAY. ALL RIGHT.
ANY OTHER QUESTIONS ON THAT. ALL RIGHT. THANK YOU. >> ALL RIGHT.
>> THANK YOU. DO YOU HAVE DIRECTION? >> I THINK SO, RIGHT. OKAY.
WE'LL LOOK AT THE FINANCE. >> OKAY. >> ALL RIGHT. SO YOU KNOW WHEN YOU'RE DOING A HALF MARATHON YOU HIT 13 AND THEY TELL YOU IT'S JUST AROUND THE CORNER.
YOU KNOW IT'S A LIE, RIGHT? NO, WE REALLY ARE. NOW JUST JUST WE'RE ROUNDING THE LAST CORNER.
WE REALLY ARE. >> WE STILL HAVE SOME CLOSED SESSIONS, SO MAKE SURE
EVERYBODY UNDERSTANDS THAT. >> FOR THE GENERAL POPULATION WE'RE ROUNDING, WE'RE ROUNDING THAT LAST CORNER. SO IN SUMMARY OUR BUDGET IS $2.2 BILLION FOR FISCAL YEAR 2027. FROM THE RESIDENT STANDPOINT, THE COMBINED IMPACT OF THE PROPOSED UTILITY RATE ADJUSTMENTS, AS WELL AS THE CHANGES TO PROPERTY TAX, IS AN OVERALL REDUCTION OF $105.20 A YEAR. ALL PUT TOGETHER. THAT INCLUDES UTILITY BILLS ANTICIPATED TO INCREASE TO $97.80 FOR THE ENTIRE YEAR, AND THEN A DECREASE OF $203 IN THE PROPERTY TAX BILL FOR THE AVERAGE HOME. THIS SLIDE ALSO
[04:45:06]
OUTLINES SOME OF THE ENGAGEMENT AND EDUCATIONAL OPPORTUNITIES WE'VE HAD WITH THIS YEAR'S BUDGET. HOPEFULLY YOU HAVE SEEN DUDE MAKE SENSE. I THINK IT'S A GREAT SERIES OF VIDEOS. I THINK MARKHAM DID AN EXCEPTIONAL JOB ON THAT AND OUR ACTOR IS EXTRAORDINARY. WE ALSO, WITH THAT, LAUNCHED AN ONLINE FORM SO WE COULD GET FEEDBACK AND QUESTIONS FROM THE COMMUNITY.WE'VE BEEN RESPONDING TO THAT. IT HASN'T GOTTEN A LOT OF USE, BUT THE USE THAT IT HAS THAT WE'VE BEEN RESPONSIVE TO THOSE INDIVIDUALS. WE'RE NEXT LAUNCHING A BUDGET SURVEY AND SIMULATOR. WE ARE HOSTING THAT A BIT DIFFERENTLY THIS YEAR USING SOME OF THE NEWER TECHNOLOGY WE HAVE, BUT THAT WILL LAUNCH VERY SOON. SO WE'LL BE ABLE TO GET FEEDBACK AGAIN ON PRIORITIES, ON WHERE THE COMMUNITY WANTS THOSE DOLLARS USED. AND I COULD SEE US IN THE FUTURE USING THAT EARLIER IN THE PROCESS. SO WE HAVE THAT AS AN INPUT GOING INTO BUDGET, BUT THIS WILL BE OUR FIRST YEAR TO USE THIS PARTICULAR TOOL IN THE PROCESS. NEXT STEPS. YOU'LL SEE US AGAIN ON AUGUST THE 18TH. WE'LL COME BACK WITH ANY FOLLOW UP ITEMS, DISCUSS ANY FEE CHANGES, AND THEN WE'LL ALSO BRING FORWARD THE INTENT TO SET THE TAX RATE. SEPTEMBER 15TH.
WE'LL HAVE A BUDGET AND TAX RATE HEARING AND THEN ADOPTION ON THE 22ND. TOLD YOU WE WERE NEAR THE END. SO AS WE WRAP UP TODAY, I WANT TO THANK EACH OF YOU FOR YOUR TIME, YOUR GUIDANCE THROUGHOUT THE PROCESS. I WANT TO THANK CITY MANAGEMENT, PARTICULARLY INTERIM CITY MANAGER CASSEY OGDEN, FOR HER UNDYING SUPPORT OF THIS ORGANIZATION AND DEDICATION TO HOW WE MOVE FORWARD NEXT YEAR AND BEYOND. I DO WANT TO POINT OUT AND THANK OUR INTERIM BUDGET MANAGER, SETH HARRELL. HE HAS DONE A FANTASTIC JOB AND KEPT ME SANE FOR THE MOST PART THROUGHOUT THE PROCESS, AS WELL AS THE REST OF OUR BUDGET TEAM, WHICH ARE DOWN THE HALL SOMEWHERE LISTENING TO THIS, ALL TAKING GREAT NOTES SO THAT WE CAN BRING YOU BACK MORE INFORMATION. AND THEN I'M GOING TO TURN IT OVER TO OUR INTERIM CITY MANAGER, CASSEY OGDEN.
>> YEAH, I JUST WANTED TO SAY THANK YOU, MAYOR AND COUNCIL. I APPRECIATE THE SUPPORT, ESPECIALLY WITH OUR STAFF. WITHOUT RECEIVING RAISES THIS YEAR, IT'S BEEN DIFFICULT TO RETRACT, ATTRACT AND RETAIN EMPLOYEES. SO I WANT TO SAY THANK YOU FOR YOUR SUPPORT AS WELL AS THANK YOU TO AMY AND HER TEAM AND SETH AS INTERIM BUDGET MANAGER, THE ENTIRE BUDGET TEAM. AND THANK YOU TO THE DIRECTORS FOR ALL OF THEIR HARD WORK. THIS IS YOU SEE THIS, BUT IT STARTS IN JANUARY, AND IT REALLY IS A FULL YEAR LONG PROCESS TO PULL ALL THIS INFORMATION TOGETHER. AND THEN THERE WERE MANY LATE NIGHTS CALCULATING THE TAX RATE WITH ALL THE CHANGES THAT HAPPENED THIS YEAR. SO I JUST APPRECIATE EVERYONE'S HARD WORK.
>> THANK YOU. YES. COUNCILMEMBER RUMOHR AND THEN MAYOR.
>> I ALSO WANTED TO SHARE. THANKS TO STAFF FOR BEING HERE ON A SATURDAY. I MEAN, I THINK HALF OF STAFF IS SITTING IN THE COUNCIL CHAMBERS RIGHT NOW WATCHING THIS. SO SHOUT OUT TO EVERYBODY IN THE CHAMBERS, EVERYONE THAT'S WATCHING, EVERYONE THAT WATCHES THIS LATER. I REALLY APPRECIATE THE WORK THAT EVERYBODY HAS PUT INTO THIS, TRYING TO CREATE A BALANCED BUDGET WITH THE CONSTRAINTS THAT YOU HAVE VERY WELL LAID OUT FOR US, AMY, THAT, YOU KNOW, THE REVENUES ARE KIND OF A CHALLENGE. DEMAND AND EXPECTATIONS ARE GOING UP. AND NOW WE HAVE THIS ADDITIONAL UNCERTAINTY WITH BP AND ALL OF THAT. SO I REALLY APPRECIATE STAFF'S WORK TRYING TO TO NAVIGATE ALL OF THIS. AMY, THANK YOU FOR THIS MARATHON OF A PRESENTATION. HOPEFULLY YOU GET TO REST THE REST OF THE DAY. I'VE NEVER STOOD UP FOR AS LONG AS YOU HAVE IN FRONT OF A ROOM OF PEOPLE. SO JUST WANTED TO SAY MY THANKS TO EVERYBODY FOR
YOUR HARD WORK. >> MAYOR PRO TEM. >> I'M GOING TO DO A COMPLIMENT SANDWICH. I THINK THAT'S WHAT THEY CALL IT. I DO WANT TO THANK YOU SO MUCH BECAUSE YOU'VE BEEN DOING THIS NOW FOR A FEW WEEKS. YOU'VE I'M NEW TO THIS, AND SO I'M JUST SO IMPRESSED WITH ALL THE INFORMATION YOU'RE ABLE TO KEEP IN YOUR BRAIN BECAUSE MINE HAS BEEN SPINNING SINCE I MET YOU WITH ALL OF THIS INFORMATION. AND IT IS SO HELPFUL. AND SO THANK YOU SO MUCH. IF YOU WOULDN'T MIND GOING BACK TO SLIDE 81 REAL QUICK, AND IT'S JUST TO ACKNOWLEDGE THAT ON ONE HAND, WE CAN BE PROUD OF THE FACT THAT THERE ARE A LOT OF PEOPLE THAT ARE GOING TO BE SAVING MONEY THIS YEAR. I DO JUST WANT TO NOTE, AND I KNOW WE ALL KNOW IT, THAT. THIS DOESN'T INCLUDE RENTERS. AND SO RENTERS ARE GOING TO SEE AN INCREASE THIS YEAR. AND I JUST WANT US TO BE MINDFUL OF THAT. YOU HAD BROUGHT UP MAYOR WANTING TO HAVE A DISCUSSION AT SOME POINT ABOUT, I THINK IT WAS WITH ELECTRIC RATES, WHETHER OR NOT OUR RESERVES OR WHERE THEY SHOULD BE. I'D LIKE TO HAVE THAT CONVERSATION SOONER RATHER THAN LATER, SO THAT WE CAN BE PROACTIVE MOVING FORWARD. AND SO AS SOON AS WE CAN HAVE THAT CONVERSATION, I THINK WOULD BE A POSITIVE. AND THE LAST THING I'LL SAY IS TO THE INTERIM CITY MANAGER. I THINK THIS IS THE FIRST CONVERSATION I HAD WITH YOU
[04:50:06]
WHEN I MET YOU, WAS ABOUT THE BUDGET, AND YOU'VE BEEN CONSISTENT FROM THE BEGINNING OF I MEAN, FIRST OFF, YOU INHERITED A LOT AND YOU HIT THE GROUND RUNNING AND YOU SAID FROM THE GET GO THAT YOUR PRIORITY WAS MAKING SURE THAT STAFF GOT RAISES THIS YEAR. SO YOU DESERVE A LOT OF CREDIT BECAUSE YOU ACCOMPLISHED THAT. AND I THINK GIVEN WHAT WE HAVE A VERY PROFESSIONAL AND VERY IMPRESSIVE BUDGET, WHEN WE FIRST MET, YOU'RE LIKE, WE'RE NOT GOING TO BE ABLE TO FUND TWO EMS LIEUTENANTS. AND WE DID. WE DID A LOT WITH WHAT WE HAVE RIGHT NOW. AND AND I KNOW IT'S YOUR TEAM THAT GETS A LOT OF CREDIT, BUT YOU SHOULD GET ALOT OF THAT CREDIT AS WELL. AND SO THANK YOU. >> COUNCILMEMBER HOLLAND.
>> THANK YOU. I WAS VERY IMPRESSED WITH THE WITH THE WAY YOU WERE TO COMPARTMENTALIZE THESE THINGS AND THEN KNOW WHERE THEY WERE. THAT WAS VERY IMPRESSIVE. AND YOU AND YOU MAINTAIN A SENSE OF HUMOR DOING IT. MADAM CITY MANAGER, I APPRECIATE YOUR LEADERSHIP ON THIS AND, AND THE ENTIRE TEAM. BUT BUT IT STARTS AT THE TOP. AND AND WE APPRECIATE THAT.
>> ANYBODY ELSE. WELL, THEN I'LL I'LL WRAP UP AT LEAST THIS OPEN SESSION. FIRST OF ALL, THANK YOU, KATHY, FOR YOUR LEADERSHIP IN THIS AND COMING, YOU KNOW, INHERITING, YOU KNOW, SOME SOME DIFFICULT CHALLENGES FROM THE YEAR BEFORE. AND CERTAINLY THANK YOU TO THE TEAM.
I MEAN, I'VE ALWAYS SAID THAT THE CITY OF DENTON EMPLOYEES THAT NO MATTER WHAT LEVEL, HAVE SUCH A STRONG COMMITMENT TO OUR COMMUNITY AND TO THE WORK THEY DO, AND THEY TAKE PRIDE IN THAT WORK, AND IT SHOWS IT'S SHOWN TODAY. IT'S SHOWN WITH YOU, AMY, PUTTING TOGETHER THIS PRESENTATION OF 100 AND SOMETHING, I DON'T KNOW, PAGES. AND I'VE JUST GOT TO SAY, FIRST OF ALL, CITY COUNCIL'S MAIN PRIORITY IS TO PASS A BUDGET BECAUSE THAT AFFECTS EVERYTHING.
I MEAN, IF WE DON'T DO OUR BEST AT THAT TOGETHER AS A TEAM WITH STAFF, WE REALLY CAN. WE CAN HURT THE COMMUNITY. AND I THINK TODAY WAS A WONDERFUL DISCUSSION. I THINK IT REALLY WE HIT SOME HARD ISSUES AND WE STILL HAVE A COUPLE OF ISSUES TO, TO TALK ABOUT, BUT I THINK IT WAS COMPREHENSIVE. I THINK WE LAID OUT THAT EVEN THOUGH THERE'S A TAX DECREASE COMING, THAT WE DON'T KNOW WHAT THE FUTURE HOLDS WITH SOME OF THESE UNPREDICTABLE REVENUES, AND WE'RE GOING TO CONTINUE TO DO OUR BEST TO MAKE SURE THAT WE MAKE IT AS AFFORDABLE FOR OUR COMMUNITY AS WE CAN. SO I'M VERY PROUD OF WHAT WE'RE ACCOMPLISHING TODAY AS A TEAM BECAUSE THAT'S WHAT WE ARE. WE ARE A TEAM TO DO THE BEST WORK WE CAN FOR THE COMMUNITY. AND CERTAINLY THANK YOU, ALL OF MY COLLEAGUES, FOR YOUR INPUT. INVALUABLE, INSTRUCTIVE, AND I THINK REALLY GOOD DIRECTION AND SHOWS DISCERNMENT AND WISDOM. SO WE'RE GOING TO MOVE ON TO
[1. Closed Meeting:]
OUR CLOSED SESSION NOW. SO THANK YOU EVERYBODY. THANK EVERYBODY IN THE WORK SESSION AND THE COUNCIL CHAMBERS, THEY'RE PROBABLY UP THERE SITTING IN OUR CHAIRS, YOU KNOW, DOING THOSE KINDS OF THINGS. SO AGAIN, Y'ALL ENJOY THE REST OF YOUR SATURDAY AND. RIGHT. AND THEN SO WHAT WE WILL DO NOW, THE CITY COUNCIL WILL NOW CONVENE IN A CLOSED MEETING AT 1:48 P.M. TO DELIBERATE THE CLOSED MEETING ITEMS AS SET FORTH ON THIS AGENDA, WHICH INCLUDE THE FOLLOWING A DELIBERATION REGARDING CERTAIN PUBLIC POWER UTILITIES.COMPETITIVE MATTERS UNDER TEXAS GOVERNMENT CODE SECTION 551.086 CONSULTATION WITH ATTORNEYS UNDER TEXAS GOVERNMENT CODE, SECTION 551.071. THIS WAS A PLACEHOLDER FOR WORK SESSION ITEM 26-0559 FOR US TO HAVE ANY QUESTIONS IF WE DO. AND THEN OUR SECOND CLOSED, CLOSED SESSION AGENDA ITEM IS ID 26-1256. CONSULTATION WITH ATTORNEYS UNDER TEXAS GOVERNMENT CODE SECTION 551.071. SO WE'LL GIVE
* This transcript was compiled from uncorrected Closed Captioning.