[00:00:01]
>> THE TIME IS NOW SIX O'CLOCK.
[CALL TO ORDER/GENERAL COMMENTS]
WE'LL GO AHEAD AND CALL THIS WORK SESSION OF THE BEDFORD CITY COUNCIL TO ORDER.I'D LIKE TO WELCOME EVERYBODY, THOSE IN THE AUDIENCE, AND THOSE WHO WILL BE TUNING IN A LITTLE BIT LATER, I GUESS.
[WORK SESSION]
WITH THAT, WE HAVE RECEIVE AND DISCUSS THE FISCAL YEAR 2025/2026 PROPOSED BUDGET.I'LL GIVE YOU ASSISTANT CITY MANAGER KAREN BIGGS. GOOD EVENING.
>> THIS IS TURNED ON. THANK YOU.
[LAUGHTER] GOOD EVENING, MAYOR AND COUNCIL.
BEFORE WE GET STARTED WITH OUR OFFICIAL PRESENTATION, I JUST WANTED TO SAY, THANK YOU, HONESTLY TO YOU ALL.
I THINK FROM THE MINUTE OUR CITY MANAGER HIT PUBLISH, AND SENT YOU GUYS THE LINK, THE QUESTIONS STARTED POURING IN.
I JUST WANTED TO SAY THANK YOU SO MUCH. [LAUGHTER]
>> I HAD THAT DRAFTED IMMEDIATELY WAITING.
>> BUT NO, THANK YOU SO MUCH FOR TAKING THE TIME TO REVIEW THIS DOCUMENT.
THIS DOCUMENT TOOK A LOT OF TIME AND EFFORT TO PUT TOGETHER.
I JUST WANTED TO SAY THANK YOU.
THANK YOU FOR TAKING THE TIME TO READ IT AND REVIEW IT AND SEND US YOUR QUESTIONS.
THERE WERE SOME VERY HARD AND CHALLENGING QUESTIONS, AND I TRULY APPRECIATE YOU TAKING THE TIME. THANK YOU SO MUCH.
>> THANKS STAFF. SOME OF THEM, IT WAS MORE NUANCED QUESTIONS.
THERE WASN'T CLEAR BLACK AND WHITE ANSWER, AND I KNEW THERE WAS A LOT OF RESEARCH INVOLVED IN IT.
IT TOOK A LOT OF PEOPLE TO GET THESE ANSWERS.
I JUST WANTED TO SAY, APPRECIATE EVERYBODY AND YOUR FINANCE TEAM, EVERYBODY ALL THE WORK INVOLVED FOR GETTING THAT TO US.
THANK YOU ALL FOR YOUR HARD WORK ON.
>> ABSOLUTELY. THEN, SECOND OF ALL, I JUST WANT TO THANK THE FOLKS THAT ARE HERE WITH US TONIGHT.
WE WOULD NOT BE HERE TONIGHT IF IT WASN'T FOR THE INCREDIBLE TEAM THAT WE HAVE HERE AT THE CITY OF BEDFORD.
WHEN I TELL YOU THAT YOU HAVE AMAZING FOLKS LEADING THE CITY OF BEDFORD, YOU HAVE AMAZING FOLKS LEADING THE CITY OF BEDFORD.
WE KNEW GOING INTO THIS BUDGET SEASON, IT WAS GOING TO BE VERY CHALLENGING.
THESE FOLKS ROSE TO THAT CHALLENGE.
WE KNEW WITH SALES TAX FLATTENING, WE KNEW WITH WHAT THE REAPPRAISAL PLAN WAS, IT WAS GOING TO BE HARD.
WE TOLD THEM IT WAS GOING TO BE HARD.
THEN WHEN I REACHED OUT IN JULY, AND I CHALLENGED THEM AGAIN, THESE FOLKS ROSE TO THAT CHALLENGE.
WHEN I TELL YOU THAT YOU HAVE AMAZING AND INCREDIBLE LEADERS, YOU HAVE AMAZING AND INCREDIBLE LEADERS.
I'M GETTING CHOKED UP. I'M GOING TO STOP.
BUT I JUST WANT TO SAY, THANK YOU SO MUCH TO EVERYONE IN THE BACK OF THIS ROOM.
FOR EVERYTHING THAT THEY HAVE DONE TO MAKE THIS BUDGET A SUCCESS.
WE WOULD NOT BE HERE TONIGHT IF IT WASN'T FOR EVERYBODY, ESPECIALLY THIS LADY RIGHT HERE.
SHE IS INCREDIBLE. I'M GOING TO STOP, AND WE'RE GOING TO MOVE ON.
>> GET TO THE NUMBERS. MOVING ON.
[LAUGHTER] THIS IS JUST OUR ANNUAL BUDGET PROCESS.
LIKE I SAID, WE KNEW THIS WAS GOING TO BE A CHALLENGING YEAR FOR US.
WHEN ANDREA AND I SAT DOWN WITH EMPLOYEES BACK IN JUNE, WE SET THE TONE FOR WHAT THIS BUDGET SEASON WAS GOING TO LOOK LIKE, AND WE KNEW WE HAD CHALLENGES AHEAD.
WE KNEW SALES TAX WAS FLATTENING.
WE HAD TALKED LAST SUMMER ABOUT THE TAD REAPPRAISAL PLAN AND WHAT CHALLENGES THAT MEANT FOR THE CITY OF BEDFORD.
WE PRETTY MUCH STARTED IN MARCH WITH OUR DIRECTORS.
LAST YEAR, WE DID A NEW CONCEPT WITH TARGET BASED BUDGETING, WHERE WE GIVE OUR DIRECTORS.
THIS IS YOUR BASE BUDGET, WHICH IS THIS YEAR'S BUDGET MINUS EVERYTHING THAT YOU HAVE NO CONTROL OVER, WHICH IS YOUR PERSONNEL BUDGETING, YOUR UTILITIES, THINGS THAT YOU REALLY CAN'T CONTROL, AND THIS IS THE NUMBER THAT YOU NEED TO MEET.
YOU CAN ONLY GO OVER THAT NUMBER IF IT IS A CONTRACTUAL OBLIGATION INCREASE.
THEN ANYTHING OVER THAT, THEY HAD TO DO A SUPPLEMENTAL REQUEST, WHICH IS WHY SOME OF THOSE SUPPLEMENTALS THAT YOU MAY SEE ARE LIKE $5,000, $7,000, BECAUSE WE WANT TO BE VERY RESPONSIBLE WITH OUR TAXPAYER DOLLARS AND ONLY INCREASE THOSE WITH YOUR PERMISSION.
WE ARE IN THE PROPOSED BUDGET THAT WE HAVE SUBMITTED TO YOU.
SOME OF THE STRATEGIES AND ASSUMPTIONS THAT GO INTO THE BUDGET IS WORKING WITH YOUR GOALS AND STRATEGIC PLAN.
WE WANT TO FUND EXISTING SERVICE LEVELS, AND WE REALLY WANTED TO FOCUS ON EMPLOYEE RETENTION AND RECRUITMENT.
NOW, I KNOW THAT WE MET EARLIER THIS YEAR TO REDEFINE WHAT OUR STRATEGIC GOALS WERE OR WHAT YOUR STRATEGIC GOALS WERE.
SINCE WE HAVEN'T FINALIZED THAT PLAN.
WHAT'S IN HERE IS WHAT THEY WERE BACK IN 2021.
WE WANTED TO WAIT UNTIL YOUR STRATEGIC PLAN WAS FINALIZED BEFORE WE MADE CHANGES IN THE BUDGET.
THAT'S WHY THESE HAVE NOT CHANGED.
I JUST WANTED TO CLARIFY THAT.
THIS IS WHAT'S REALLY IMPORTANT AND WHAT'S IN OUR BUDGET THIS YEAR.
WE DID A 3% FOR ALL EMPLOYEES.
WE DID A PUBLIC SAFETY STEP PLAN.
[00:05:01]
WHAT'S INTERESTING WITH OUR PUBLIC SAFETY STEP PLAN IS WE WORKED WITH BOTH CHIEFS.BOTH CHIEFS REALLY WANTED TO ADJUST THEIR STEP PLAN THIS YEAR TO BE COMPETITIVE IN THE MARKET.
OUR POLICE CHIEF REALLY WANTED TO CREATE AND PULL OUT HIS POLICE RECRUITS AND PUT THEM IN A STEP ALL BY THEMSELVES.
RIGHT NOW, THEY WERE IN THE SAME STEP AS A POLICE OFFICER.
BUT THEY'RE NOT REALLY IN THE POLICE OFFICER, THEY'RE IN THE ACADEMY.
HE WANTED TO CREATE A RECRUIT STEP.
OUR POLICE OFFICERS HAD A NINE STEP.
IF THEY WERE IN STEP 7, THEY HAD TO WAIT TWO YEARS BEFORE THEY COULD MOVE TO STEP 9.
HE ACTUALLY WANTED TO COMPRESS IT TO SIX.
WE COULDN'T GET THERE THIS YEAR, SO WE COMPRESSED IT TO SEVEN.
THEN HOPEFULLY NEXT YEAR, I CAN GET HIM TO SIX.
THAT MAKES HIM A LITTLE BIT MORE COMPETITIVE IN THE MARKET WHEN COMPARED TO OUR BENCHMARK CITIES.
NOW, OUR FIRE CHIEF THE SAME THING, WE HAD FIRE STEPS AT SEVEN.
HE WANTED TO GET IT DOWN TO FOUR, COULDN'T DO THAT THIS YEAR, BUT I GOT HIM DOWN TO FIVE.
HE ALSO WANTED TO PULL OUT OUR MEDICAL OPERATIONS OFFICER RIGHT NOW.
THEY'RE IN THE SAME STEP AS I BELIEVE OUR FIRE ENGINEER.
THANK YOU, ANDA. YOU'RE FABULOUS.
THEY'RE IN THE SAME STEP AS OUR FIRE ENGINEER, AND WE WEREN'T ABLE TO MAKE THAT WORK THIS YEAR BECAUSE THERE'S A TRICKLE DOWN EFFECT TO EVERYBODY IN THE STEPS AFTER THAT.
WE'RE HOPING NEXT YEAR WE CAN MAKE THAT CHANGE THAT WE WERE ABLE TO TAKE CARE OF OUR FIRE FIGHTERS THIS YEAR, AND THEN WE CAN TAKE CARE OF THE OTHER STEPS NEXT YEAR.
THE NEXT ONE IS THE TMRS COLA, THE COST OF LIVING.
WE HAD TMRS COME AND TALK TO YOU GUYS A COUPLE OF WEEKS AGO.
THIS IS SOMETHING THAT THE EMPLOYEES HAVE BEEN ASKING ABOUT SINCE OUR PRIOR CITY MANAGER WAS HERE.
TMRS WAS IMPLEMENTED IN 2009, AND AT THE TIME, BEDFORD WASN'T ABLE TO IMPLEMENT THE COLA.
JUST WASN'T FEASIBLE FINANCIALLY.
THE EMPLOYEES WERE TALKING TO THE PRIOR CITY MANAGER ABOUT IMPLEMENTING THE COLA, AND AT THE TIME, THE ONLY OPTION WAS THE RETROACTIVE COLA.
WHAT THAT MEANT IS IT GOES BACK TO 2009 WHEN THAT FIRST EMPLOYEE RETIRED.
WENT ALL THE WAY BACK TO THAT VERY FIRST RETIREE, AND IT HAD A COMPOUNDING EFFECT $2-$3 MILLION EVERY YEAR, WHICH IS WHY IT JUST WASN'T FINANCIALLY FEASIBLE.
WE WERE ABLE TO PUT INTO THE BUDGET THIS YEAR THAT 30% NON RETROACTIVE TMRS COLA, WHICH MEANS THAT IT GOES INTO EFFECT JANUARY 1, 2026, AND IT'S A MINIMAL IMPACT TO OUR BUDGET.
IT AFFECTS EVERYONE GOING FORWARD.
>> WHEN YOU SAY MINIMAL, WHAT IS MINIMAL?
>> ON THE GENERAL FUND, IT'S ABOUT $400,000.
THERE IS AN IMPACT TO OTHER FUNDS AS WELL.
>> BASED ON WHERE THE EMPLOYEE IS FUNDED FROM.
>> THIS WILL BE AN ONGOING COST THEN TO OUR GENERAL FUND?
>> YOU'RE WELCOME. THEN THE OTHER THINGS THAT, JUST LIKE IN YOUR OWN HOUSEHOLD BUDGET, INFLATIONARY COSTS, TO UTILITIES, THINGS LIKE THAT.
WE HAD SOME CHALLENGES THIS YEAR WITH HEALTH INSURANCE.
LAST YEAR, WE DID GO OUT TO BID BECAUSE AETNA WAS COMING IN WITH A PRETTY HIGH INCREASE.
CIGNA CAME IN, AND WE ACTUALLY EXPERIENCED A DECREASE, AND PART OF THAT DECREASE WAS THEY NEGOTIATED A 12% CAP BASED ON IF WE HAD A LOSS RATIO FOR THIS YEAR, AND THEY DID TAKE ADVANTAGE OF THAT 12% CAP.
OUR LOSS RATIO, LAST I CHECKED WAS ABOUT 98%, AND THEY LIKE TO BE ABOUT 75-80, AND SO THEY'RE TAKING ADVANTAGE OF THAT 12% CAP THIS YEAR.
AS WE WERE WORKING THROUGH THE NUMBERS, WE ARE RECOMMENDING TO PASS ON AN INCREASE TO OUR EMPLOYEES, WHICH IS THE FIRST TIME THAT THE CITY HAS DONE THAT IN SEVEN YEARS.
I WILL TELL YOU THAT WAS A HARD RECOMMENDATION.
I PULLED DOWN EVERY EMPLOYEE'S HOURLY RATE, AND I PULLED DOWN THE 3%, AND I CALCULATED WHAT THAT WOULD BE, AND THEN I CALCULATED WHAT THE INCREASE IN INSURANCE WOULD BE, AND I WAS TRYING TO FIGURE OUT WHAT THAT WOULD BE TO A MONTHLY IMPACT TO OUR EMPLOYEES, AND THEN I REALIZED I CAN'T FIGURE THAT OUT UNLESS I PULL WHAT THEIR INSURANCE IS, AND IF THE CALCULATION GOT TOO COMPLICATED.
THAT'S A HARD THING TO DO, BUT WE WERE TRYING TO MAKE IT WORK FOR AS MANY EMPLOYEES, THE LEAST IMPACT AS POSSIBLE.
ON OUR PROPERTY AND WORKERS' COMP, SO JUST A LITTLE TIDBIT ON HOW THAT WORKS.
WE ARE EXPERIENCE A SMALL INCREASE ON PROPERTY IN WORKERS' COMP.
WORKERS' COMP LOOKS BACK THREE YEARS.
THAT'S WHY WE HAD TWO YEARS AGO,
[00:10:01]
A PRETTY HIGH WORKERS COMP RATE INCREASE OR A LOSS RATIO YEAR.WE'LL HAVE ONE MORE YEAR WITH THAT.
WE'LL PROBABLY HAVE A PRETTY HEAVY YEAR NEXT YEAR, AND THEN THAT WILL ROLL OFF.
I'M HOPING IN ONE MORE YEAR WE'LL HAVE TO GO ANOTHER ONE YEAR WITH SOME ROUGH WORKERS' COMP RATES, AND THEN THE NEXT YEAR, IT SHOULD LOOK BETTER.
PROPERTY INSURANCE IS LOOKING PRETTY GOOD.
WE'RE TRENDING VERY GOOD THIS YEAR.
THEY LOOK BACK THREE TO FOUR YEARS, AND THEY USE THE LESSER OF THE TWO.
AGAIN, I'M HOPING THE NEXT COUPLE OF YEARS, WE'LL SEE WORKERS' COMP AND PROPERTY INSURANCE START TO TREND IN THE MORE DOWNWARD.
THEN WE'LL TALK LATER ON IN THE PRESENTATION ABOUT SOME CONSOLIDATION OF FUNDS.
THAT'S SOMETHING WE'VE BEEN TALKING ABOUT FOR A COUPLE OF YEARS JUST TO GET THOSE FUNDS IN A BETTER SPOT AS FAR AS THE GOVERNMENTAL ACCOUNTING STANDARD BOARD RECOMMENDATIONS.
ANY OTHER QUESTIONS BEFORE? YES SIR.
>> I'M SURE YOU'LL GET TO IT LATER, BUT MY QUESTION IS ON THE COLA AND THE INCREASE FOR THE EMPLOYEES ON THE INSURANCE.
WILL WE HAVE EMPLOYEES THAT THE INCREASE WILL BE MORE THAN THEIR INCREASE ON THEIR COLA?
>> I DIDN'T ANALYZE IT QUITE TO THAT LEVEL HONESTLY.
I'M SURE SOME WILL, TO BE HONEST, BECAUSE I DIDN'T LOOK AT IT TO THAT GRANULAR. I REALLY DID TRY.
THEN I REALIZED IN ORDER FOR ME TO DO THAT, I WOULD HAVE TO LOOK AT EACH INDIVIDUAL EMPLOYEE SPECIFICALLY TO KNOW WHAT THAT IS.
WHAT I'M HOPING, BECAUSE WE LOOKED AT EACH TIER, EITHER IN THE COPAY PLAN OR THE HIGH DEDUCTIBLE PLAN TO FIGURE OUT WHERE THAT IS.
WHAT I'M HOPING IS THAT WITH HR, WE CAN WORK WITH OUR EMPLOYEES TO GO SO YOU'RE IN THE COPAY PLAN RIGHT NOW.
HAVE YOU LOOKED AT THE HIGH DEDUCTIBLE PLAN BECAUSE EACH SITUATION IS DIFFERENT.
I'M HOPING WE CAN WORK WITH OUR EMPLOYEES TO EDUCATE THEM ON THE HIGH DEDUCTIBLE PLAN AND MAYBE HELP THEM WITH THAT.
>> YES. I DID FORGET THERE WAS SOME STATS ON THE TMRS COLA THAT I WAS GOING TO TELL YOU ABOUT, AND I COMPLETELY SPACED.
I'M SO SORRY. INTERESTING THING ABOUT THE COLA WE COMPARE OURSELVES TO 12 OTHER CITIES IN OUR AREA.
WE ARE ONE OF THREE THAT DO NOT CURRENTLY HAVE A COLA.
>> WHICH ARE THE OTHER THREE, OR THE OTHER TWO.
>> THE OTHER TWO IS COLLEYVILLE AND HURST.
THEN THE OTHER THING THAT I PULLED TODAY IS, SO OUT OF OUR 316 CURRENTLY FULL TIME EMPLOYED FOLKS, WE HAVE 60 THAT HAVE BEEN HERE 5-10.
WE HAVE 19 THAT HAVE BEEN HERE 10-15 YEARS.
WE HAVE 32 THAT HAVE BEEN HERE 15-20.
WE HAVE 48 THAT HAVE BEEN HERE OVER 20 YEARS.
WHAT THAT TELLS ME IS WE HAVE VERY LOYAL EMPLOYEES.
BUT WHAT THAT ALSO TELLS ME IS THAT WE NEED TO REALLY FOCUS ON THAT 0-5 YEARS.
WE REALLY NEED TO WORK ON THAT 0-5 YEARS AND FIGURE OUT HOW TO RETAIN THOSE AND GET THEM PAST THAT FIVE YEAR MARK.
THAT'S SOMETHING THAT HONESTLY, THE FIRE CHIEF HAS BEEN TALKING TO ME FOR A WHILE.
HE'S LIKE, I NEED TO GET THEM PAST THAT FIVE YEAR MARK. HOW DO I GET THEM THERE? I FEEL THIS COLA IS ONE OF THOSE OPTIONS. THEY'RE LOOKING AT THAT.
HOW DO WE REMAIN COMPETITIVE WITH OUR NEIGHBORING COMMUNITIES? I FEEL ADJUSTING THE STEPS, AND THEN I ALSO FEEL LIKE THIS TMRS COLA IS IMPORTANT TO BE COMPETITIVE IN THE MARKET.
>> KAREN, SO DO SOME CITIES PAY 100% TMRS COLA?
>> SOME CITIES SURROUNDING US DO PAY 70?
>> WE HAVE 1, 2, 3, 4, 5, 6, 7.
THERE ARE SEVEN CITIES THAT DO THE 70%.
THERE ARE TWO CITIES THAT DO 50, AND THERE'S ANOTHER CITY THAT DOES THE 30.
>> FUTURE PLANS ARE TO EDGE THAT UP.
IT'S JUST TO ME, BUT I THINK 30% OF 3% IS REALLY LOUSY.
IF I COULD FUND A 50% OR IF I COULD FUND A 70%, I WOULD BE STANDING BEFORE YOU RECOMMENDING THAT.
>> BUT IN THE FUTURE, MIGHT WE WORK TOWARDS THAT?
>> THE PROBLEM WITH THAT, ANY CHANGE WE MAKE TO TMRS GOING FORWARD IS RETROACTIVE.
>> UNLESS THE STATE DOES SOMETHING.
ANY CHANGE WE MAKE AFTER THIS YEAR WILL BE A RETROACTIVE CHANGE.
THE STATE LEGISLATURE COULD DECIDE TO DO ANOTHER THING LIKE THIS AGAIN. WE DON'T KNOW.
[00:15:03]
>> I KNOW. IT'S A ONE TIME SHOT.
WE DIDN'T EVEN CONSIDER THE 70.
WE BARELY COULD DO THE 30. I KNOW.
>> ANY OTHER QUESTIONS? I KNOW. I'M SORRY.
I TRIED TO SMILE WHY I SAID IT.
THIS IS JUST OUR SALES TAX HISTORY.
WE'VE BEEN TALKING ABOUT SALES TAX FOR A WHILE, AND IT'S BEEN FLATTENING.
I DID WANT TO POINT OUT SOMETHING IN CASE IT DIDN'T CATCH YOUR EYE.
IF YOU LOOK AT APRIL AND MAY, IT LOOKS A LITTLE WEIRD.
IN APRIL, WE HAD A VERY ODD SALES TAX ADJUSTMENT THAT HIT OUR BOOKS, AND IT REALLY CONCERNED US BECAUSE ALL OF A SUDDEN WE HAVE A -32% WHEN COMPARED TO THE PRIOR YEAR.
WE REACHED OUT TO THE STATE COMPTROLLER, QUESTIONED IT.
SO WE'RE WAITING TO SEE EXACTLY WHAT THAT ADJUSTMENT WAS.
SOMETIMES WHAT YOU CAN DO WITH THE COMPTROLLER IS IF IT TRULY WAS A REFUND TO ANOTHER CITY, SO SOMETIMES IF A BUSINESS MOVES FROM ONE CITY TO ANOTHER, BUT THEY NEVER UPDATED THEIR RECORDS WITH THE COMPTROLLER, THE CITY CAN REQUEST THAT AND THEN YOU CAN DO A PAYBACK PERIOD.
SO IT DOESN'T NECESSARILY HIT YOUR BOOKS ALL AT ONCE.
WE'RE WORKING WITH THE COMPTROLLER, WE'RE WAITING ON THAT PAPERWORK BECAUSE I WOULD RATHER DO A PAYBACK PERIOD SO THAT I PAY WHATEVER THAT AMOUNT IS OVER 12 MONTHS VERSUS PAYING IT ALL AT ONCE, SO I DON'T HIT MY BOOKS FOR $400,000.
THAT'S WHY IT LOOKS A LITTLE WONKY OVER THOSE TWO MONTHS.
BUT YEAR TO DATE, WE'RE SITTING AT ABOUT 2.5% OVER THE PRIOR YEAR.
WE'RE SEEING SALES TAX FLATTEN.
TO BE PRETTY CONSERVATIVE, WE DID A 2% FOR THE REMAINDER OF THE YEAR, AND THEN FOR 25/26, WE DID 2% OVER OUR YEAR END PROJECTION.
SO WE DID VERY, VERY CONSERVATIVE FOR SALES TAX.
>> MOST CITIES ARE SEEING A FLAT LINE.
>> WE ARE, AND IN FACT, SOME CITIES ARE SEEING DECREASES IN SALES TAX.
>> EXACTLY. I WANT TO MAKE SURE WE MAKE NOTE OF THAT, THAT THIS IS JUST A SYMPTOM OF ECONOMIC CONDITIONS AT THE MOMENT, AND WE'RE NOT IMMUNE.
MANY OTHER CITIES ARE WORSE OFF THAN WE ARE.
>> CORRECT. THIS IS JUST ANOTHER CHART JUST TO ILLUSTRATE SALES TAX.
HERE'S WHERE WE START TALKING ABOUT OUR TAXABLE VALUE.
WHEN YOU LOOK AT TAXABLE VALUE THIS YEAR TO TAXABLE VALUE OF LAST YEAR, IT IS FAIRLY FLAT.
THIS IS JUST ANOTHER ILLUSTRATION.
WHEN YOU COMPARE OUR TAXABLE VALUE OF THIS YEAR TO LAST YEAR, IT WAS A 0.6% GROWTH COMPARED TO THE PRIOR YEAR, WHICH IS PRACTICALLY FLAT.
THE ONE THING THAT WE DID HAVE HELPED US OUT A LITTLE BIT WAS WE HAD ABOUT 10.5 MILLION IN NEW CONSTRUCTION.
THE INTERESTING THING, AND I DON'T HAVE THAT NUMBER IN FRONT OF ME, WAS WE DID HAVE RESIDENTIAL APPRAISALS DECREASED.
WHAT WE FOUND WAS RESIDENTIAL APPRAISALS, EVEN THOUGH THEY WERE NOT REAPPRAISED, A LOT OF PEOPLE WENT AND DISPUTED THEIR VALUE.
SO THAT'S WHY WE SAW SUCH A DECREASE IN RESIDENTIAL APPRAISALS, WHICH YOU CAN ACTUALLY SEE, BY THE AVERAGE MARKET VALUE, IT WENT DOWN COMPARED TO THE PRIOR YEAR.
>> THE REAPPRAISAL PLAN FROM TAD, ALONG WITH THOSE WHO WENT AHEAD AND PROTESTED THEIR VALUES ARE REASON WHY WE'RE SEEING THAT 0.6% INCREASE IN GROWTH.
>> CORRECT. RESIDENTIAL APPRAISALS DECREASED, COMMERCIAL VALUES INCREASED, AND I WANT TO SAY, BUSINESS PERSONAL PROPERTY ALSO DECREASED.
HERE'S WHERE WE GET INTO THE REALLY FUN CONVERSATION.
THIS IS OUR TAX RATE LAST YEAR WAS 0.495726.
THE NO NEW REVENUE TAX RATE, WHICH IS, IF YOU HAD A PROPERTY ON THE TAX RATE LAST YEAR COMPARED TO THE SAME PROPERTY ON THE TAX RATE THIS YEAR, WHICH WE JUST TALKED ABOUT, A LOT OF THEM DECREASED.
TO BRING IN THE SAME AMOUNT OF REVENUE THIS YEAR, WHICH IS WHY IT'S 0.5068.
THAT TAX RATE INCREASE WOULD BRING IN THE SAME AMOUNT OF REVENUE AS IT DID LAST YEAR.
THEN THE VOTER APPROVAL RATE, WHICH IS THE HIGHEST TAX RATE POSSIBLE WITHOUT GOING TO THE VOTERS, IS THAT 0.52612.
WHICH IS WHAT WE'RE PROPOSING IN THE PROPOSED BUDGET.
I WILL BE VERY, VERY HONEST WITH YOU, THAT'S HARD.
THAT'S A THREE CENT TAX INCREASE.
THAT'S HARD TO STAND BEFORE YOU AND RECOMMEND,
[00:20:04]
AND I KNOW THAT'S HARD FOR Y'ALL.IT WAS HARD FOR US TO PUT TOGETHER, AND I KNOW IT'S CHALLENGING, BUT WE'RE IN A UNIQUE POSITION TO BE ABLE TO FUND QUITE A FEW THINGS WITH THAT.
I'LL BE HONEST, I DID PULL SOME NEIGHBORING CITIES, AND WE'RE NOT THE ONLY ONES.
WE ARE NOT THE ONLY ONES DOING THE VOTER APPROVAL RATE.
>> WITH THIS NO NEW REVENUE RATE, COULD YOU TALK A LITTLE BIT ABOUT HOW, I MEAN VERY HIGH LEVEL 'CAUSE I KNOW THERE'S A BIG METRIC IN THERE AND HOW YOU GET TO THAT NUMBER? COULD YOU TALK A LITTLE BIT HOW WE GET THERE? JUST FOR CLEVLIN, NO NEW REVENUE RATE IS TO BASICALLY COLLECT THE SAME AMOUNT OF PROPERTY TAXES AS DID LAST YEAR.
>> CORRECT. SAME PROPERTY THAT EXISTED LAST YEAR, THEY EXIST THIS YEAR. SAME AMOUNT.
BASICALLY, THE DIFFERENCE BETWEEN THE TWO IS ANY NEW GROWTH, ANY NEW PROPERTIES, SO THAT 10 MILLION THAT WE TALKED ABOUT.
PLUS, YOU ALSO GET TO TAKE ADVANTAGE OF SB 2 THAT ALLOWS YOU THAT 3.5% GROWTH.
I WANTED TO BRING THIS UP HERE.
THIS IS THE TAX CODE AND THE PROPERTY TAX CALCULATION.
THIS IS THE PROPERTY TAX CALCULATION.
IT'S AN 82 LINE WORKSHEET THAT WE GET FROM THE COMPTROLLER.
WE WORK WITH THE TARRANT APPRAISAL DISTRICT AND THE TARRANT TAX OFFICE TO CALCULATE THAT.
THERE'S A LOT OF THINGS THAT GO IN.
BEDFORD ALSO HAS A QUARTER CENT SALES TAX THAT GOES INTO THE REDUCTION OF THE PROPERTY TAX RATE CALCULATION.
THERE'S A LOT THAT GOES INTO THAT.
BUT THE NO NEW REVENUE RATE, TO YOUR POINT, MAYOR, IS SAME PROPERTY LAST YEAR, EXIST THIS YEAR, SAME REVENUE.
>> HOW MUCH REVENUE DO YOU GET FROM NEW CONSTRUCTION?
>> THE REVENUE, I DON'T HAVE IT BROKEN OUT TO THAT.
BUT I CAN TELL YOU, THE NEW CONSTRUCTION VALUE WAS A LITTLE OVER 10 MILLION.
WE COULD ROUGHLY CALCULATE THAT IF WE DID THE TAX RATE TIMES WHATEVER THAT IS.
>> NORMALLY, AND I WANT TO SAY IN YEARS PRIOR, THE NO NEW REVENUE TAX RATE, IF WE WEREN'T IN THIS BIZARRE WORLD THAT WE'RE IN CURRENTLY, WOULD BE LOWER THAN OUR CURRENT TAX RATE.
>> BECAUSE I BELIEVE THAT'S HOW IT'S BEEN IN THE PAST.
>> WE'RE IN UNCHARTED TERRITORY.
>> EVEN IF WE WANT THE SAME REVENUE, WE'D HAVE TO RAISE THE TAX RATE JUST TO KEEP THIS EXACTLY PERFECT.
>> AND I HAVE AN INTERESTING SLIDE THAT I'LL GET TO IN JUST A SECOND.
IT'S GOING TO ACTUALLY SHOW YOU THE HISTORY OF OUR TAX RATE.
I KNOW. YOU'RE VERY EXCITED ABOUT IT. SO EXCITED.
>> THAT'S A VERY NOMINAL NUMBER.
TO COUNCIL MEMBER GAGLIARDI'S POINT, WHAT WE'VE SEEN IN MANY BUDGET CYCLES IS THAT WE'VE NEVER SEEN IT TO THIS DEGREE WHERE THE NO NEW REVENUE RATE IS MORE THAN OUR CURRENT RATE, AND ALL DUE TO THESE TADS.
>> THAT'S ALL DUE TO THE DECREASE IN RESIDENTIAL VALUE.
>> THE FROZEN VALUES AND THE DECREASES DO PROTESTS.
>> TO BE HONEST, WE'LL PROBABLY BE IN THE SAME POSITION NEXT YEAR.
WE WILL PROBABLY BE IN THE SAME POSITION NEXT YEAR, WHERE WE WILL HAVE TO PROBABLY INCREASE THE TAX RATE NEXT YEAR, AND THEN WHEN THEY REAPPRAISE EVERYTHING IN '27, WE'LL PROBABLY HAVE TO DECREASE IT BECAUSE ALL OF A SUDDEN WE'LL HAVE THIS INCREASE IN VALUE, AND THEN WE'RE GOING TO HAVE TO LOWER THE TAX RATE TO BRING IN THE SAME REVENUE.
IT'S GOING TO BE THIS SEESAW GAME UNTIL THEY ACTUALLY APPRAISE THE PROPERTY EVERY YEAR.
>> BUT DON'T WE HAVE QUITE A BIT OF NEW CONSTRUCTION COMING IN NEXT YEAR.
>> AND THAT'S APPRAISED THAT THE NEW CONSTRUCTION RATE, SO THAT WOULD BE INCREASE RIGHT THERE.
>> YES. THE MINUTE THAT HITS THE TAX ROLLS, THAT GOES ON.
BUT THEN, THE NEXT YEAR, IT'S FROZEN.
WE'VE GOT 42 HOMES, 53, AND THOSE HOMES ARE VALUED AT BASELINE 900,000, BASELINE 700,000.
SO THOSE HOMES, WHEN THEY HIT THE TAX ROLLS, WILL BE INCREDIBLE FOR US.
>> THIS RATE RIGHT NOW, IT'S THE LARGEST INCREASE FROM A PRECEDING YEAR IN THE PAST FIVE, SIX YEARS.
YOU CAN SEE THE HISTORY OF OUR TAX RATE.
YOU CAN SEE FOR THE PAST THREE YEARS, WE HAVE KEPT OUR TAX RATE FLAT.
WE LOWERED IT IN '23 FROM 0.552 TO 0.495.
YOUR QUESTION ABOUT THE INCREASE, WE DID INCREASE IT PRETTY SUBSTANTIALLY FROM 18-19, ABOUT $0.4.
[00:25:02]
SO THAT WAS PROBABLY THE BIGGEST INCREASE.BUT IF YOU LOOK AT EVEN LAST YEAR, WE COULD HAVE INCREASED IT TO THE VOTER APPROVAL RATE AND WE DIDN'T.
IN EIGHT YEARS, THIS IS THE HIGHEST TAX RATE.
>> IN EIGHT YEARS. A LOT OF THOSE PROTESTS ARE PEOPLE WHO EVERY YEAR, THE VALUE OF THE HOUSE GETS MAXED OUT AT THAT 10%.
THAT'S WHAT THEY'RE PROTESTING.
>> BASICALLY OVER APPRAISED TO BEGIN WITH, ISN'T IT?
>> WELL, I CAN'T ARGUE THAT BECAUSE, AGAIN, A YEAR AGO, HOMES WERE SELLING OFF THE MARKET AND PEOPLE PAYING CASH $30,000 OVER ASKING.
SO IT'S HARD TO ARGUE, IF YOUR APPRAISAL IS 400,000, BUT YOU'RE SELLING IT FOR 440.
WELL, WHAT'S YOUR PROPERTY ACTUALLY APPRAISED FOR? IT'S HARD TO ARGUE. SO I DON'T KNOW THE ANSWER TO THAT.
>> BUT THIS YEAR THEY DID ARGUE WHEN THEY WERE SUCCESSFUL.
BUT WAS IT ACCURATE OR WERE THEY JUST? I DON'T KNOW THE ANSWER TO THAT.
BUT I THINK THIS TELLS A STORY.
I MEAN, IT TELLS A REALLY GOOD STORY.
WE'VE KEPT THE TAX RATE FLAT FOR THREE YEARS.
WE COULD HAVE INCREASED IT LAST YEAR, WE DIDN'T.
THIS IS LOWER THAN IT WAS IN 22.
IT'S LOWER THAN IT WAS WHEN WE ISSUED THAT $70 MILLION BOND.
THE ONE THING THAT I WANT TO POINT OUT TOO, IS WE HAVE DONE SO MUCH OVER THE LAST 3-4 YEARS.
WE'VE DONE CENTRAL FIRE STATION.
WE'VE DONE STATION 3, STATION 2.
WE HAVE DONE SO MUCH OVER THE LAST THREE YEARS.
AGAIN, I'M GOING TO GET EMOTIONAL, Y'ALL.
>> SHE'S TIRED OF HER QUESTIONS.
>> IT'S BEEN A LONG WEEK. I DID HAVE A QUESTION FOR WHEN WE'RE LOOKING AT THE HISTORY.
SO CLEARLY, WHEN YOU'RE LOOKING AT THE HISTORY, OBVIOUSLY, THE NO NEW REVENUE RATE IS SUBSTANTIALLY LESS THAN THE VOTER APPROVAL RATE OR THE ADOPTED RATE.
REAL QUICK QUESTION, THOUGH. FOR 2023., NO NEW REVENUE RATE WAS $0.50, AND THE VOTER APPROVAL RATE SAID IT'S 49, IS THAT CORRECT?
>> SO THE VOTER APPROVAL RATE WAS LESS THAN WHAT THE NO NEW REVENUE RATE WAS?
WE HAD A BIG DEBT ROLLOFF IN THAT YEAR.
>> THANK YOU, BRADY. I WAS TRYING TO REMEMBER THAT CALCULATION.
>> LOOKING AT THIS TAX RATE HERE, PROBABLY EVERY YEAR AS WELL, SO $0.01 ON THE TAX RATE IS ABOUT HOW MUCH IN VALUATION?
>> IN VALUATION OR IN DOLLARS?
THAT WOULD STRICTLY COME OFF OF THE GENERAL FUND.
WE'D HAVE TO KEEP THE INTEREST OR THE INS RATE THE SAME BECAUSE THAT HAS TO PAY OUR DEBT.
IT STRICTLY COME OUT OF THE GENERAL FUND.
>> WHENEVER WE'RE TALKING ABOUT THESE RATES HERE, IT HAS TO DO WITH THE GENERAL FUND.
>> WHENEVER WE'RE LOOKING AT MOVING THE TAX RATE OR ANYTHING TO THAT SORT, IT ALL AFFECTS JUST THE GENERAL FUND.
>> CORRECT. ANY OTHER QUESTIONS? THIS IS A REALLY GOOD SLIDE TOO.
BECAUSE OF WHAT WE PUT IN YOUR PROPOSED BUDGET IS THAT VOTER APPROVAL RATE, ALL THE COMPARISONS THAT WE'VE GIVEN YOU IS ON THAT.
I JUST WANTED TO SHOW YOU THE COMPARISON IF YOU COMPARE LAST YEAR'S TAX RATE TO THIS YEAR'S TAX RATE, WHAT THAT IMPACT WOULD BE.
SO IT'S $88 A YEAR ON THE AVERAGE HOMEOWNER OR $7 A MONTH.
IF YOU HAVE A NEWER SENIOR, SO SOMEONE THAT TURNED 65 AND GOT THAT TAX FREEZE, IT'S $73 A YEAR OR $6 A MONTH.
ACTUALLY, COUNCIL MEMBER FARCO ASKED A QUESTION RIGHT BEFORE THE MEETING.
IF SOMEONE HAS ALREADY BEEN OVER 65 AND THEY HAVE THEIR TAXES FROZEN, AND THEY'RE AT THAT CEILING, THE TAX RATE HAS NO IMPACT ON THEM.
THEY'RE FROZEN AT THAT CEILING.
THANK YOU TO BRADY. HE'S A GENIUS.
AND HE EXPLAINED THAT. THEY PAY THAT DOLLAR AMOUNT.
THE TAX RATE HAS NO IMPACT ON WHAT THEY PAY.
>> COUNCIL MEMBER DONOVAN BRANDON. I CAN SEE.
>> DOESN'T WORK. AS THE POPULATION AGES, IS THAT CALCULATED INTO ALL THIS?
>> THE INCREASING NUMBERS OF PEOPLE WHO LIVE HERE AND LOVE THEIR HOMES, AND LOVE THEIR CITY.
[00:30:02]
IT'S HARD FOR US TO ANTICIPATE WHAT THAT'S GOING TO LOOK LIKE NEXT YEAR OR THE YEAR AFTER.WE KNOW WHAT IT LOOKS LIKE THIS YEAR, AND THAT'S REALLY ALL WE KNOW.
>> IT REALLY DOESN'T MATTER FOR THIS YEAR SINCE EVERYONE'S PROPERTY TAXES WERE FROZEN ANYWAYS, AND PROBABLY AGAIN NEXT YEAR.
HOW MANY WERE ADDED THIS PAST YEAR?
>> CAN YOU PULL UP THAT APPRAISAL COMPARISON?
>> IS IT PROBABLY ABOUT A FEW HUNDRED?
>> IT WASN'T TOO MANY. WE DID HAVE SOME ADDED.
SHE'LL GET IT FOR US. WE'LL GET THAT FOR YOU.
THIS IS JUST TO SHOW YOU WE BREAK IT DOWN, OF HOW YOUR TAX DOLLARS ARE BROKEN OUT ON THE AVERAGE HOME VALUE.
YOU CAN SEE THAT ABOUT $40 A MONTH WOULD GO TO PD, ABOUT $32 GOES TO FIRE, AND THEN EVERYTHING ELSE IS PRETTY ANCILLARY.
THE MAJORITY GOES TO PUBLIC SAFETY ON A MONTHLY BASIS.
WE JUST BREAK IT DOWN FOR YOU SO THAT YOU CAN SEE BASED ON YOUR FUNDS, WHERE YOUR FUNDS ARE GOING, BASED ON REVENUE AND EXPENDITURES.
THAT WERE ADDED? WE HAD 179 THAT WERE ADDED THIS YEAR. THANK YOU.
THIS GIST GOES TO SHOW YOUR REVENUE OVER EXPENDITURES.
ONE OF THE THINGS THAT WE TALK ABOUT, WHENEVER YOUR EXPENDITURES EXCEED YOUR REVENUE, WE ALWAYS WANT TO MAKE SURE THAT'S FOR ONE TIME EXPENDITURES.
WE'LL GET INTO THOSE AS WE GO THROUGH EACH INDIVIDUAL FUND LATER ON IN THE PRESENTATION, BECAUSE WE ALWAYS WANT TO MAKE SURE THAT OUR REVENUES ARE ENOUGH TO COVER OUR EXPENDITURES.
IF YOU SEE A NEGATIVE, IT'S GOING TO BE FOR SOME ONE TIME EXPENSES, AND WE'LL GO THROUGH THOSE AND WE GO THROUGH THE INDIVIDUAL FUNDS.
THIS IS JUST ANOTHER GRAPH TO SHOW YOU WHAT MAKES UP THE MAJORITY OF YOUR BUDGET.
IT'S MORE OF A REVENUE COMPARISON YEAR OVER YEAR.
AGAIN, YOU CAN SEE WHERE WE ARE WITH SALES TAX IS FLATTENING WHEN YOU LOOK OVER YEAR OVER YEAR.
AGAIN, OUR PERSONNEL MAKE UP THE MAJORITY OF OUR BUDGET, WHEN YOU LOOK OVER ALL OF OUR FUNDS.
WATER PURCHASE MAKES UP A CONSIDERABLE AMOUNT.
>> AGAIN EXPENDITURES FUND BY FUND.
I'M SKIPPING OVER SOME JUST BECAUSE THEY'RE PRETTY MUCH SELF EXPLANATORY.
BUT BEFORE I TURN IT OVER TO BRADY TO TALK MORE SOME OF OUR BIGGER FUNDS, DO YOU HAVE ANY QUESTIONS ABOUT OUR TAX RATE OR TAXABLE VALUE OR ANYTHING LIKE THAT?
>> HAVE WE CALCULATED HOW MUCH.
GIVEN THAT $0.01 IS ABOUT $603,000 IN ADDITIONAL REVENUE, HOW MUCH IS BEING GENERATED WE'RE ALMOST AT A THREE CENT RAISE ON THE TAX RATES YOU FIGURE WHAT'S THAT NUMBER OF HOW MUCH ADDITIONAL REVENUE IS BEING BROUGHT IN?
>> YES. FROM THE NO NEW REVENUE RATE.
>> 1.29 MILLION. IS THAT TOTAL CROSS BOTH? TOTAL PROPERTY TAXES.
>> TOTAL PROPERTY TAXES, 1.3 MILLION.
>> OUTSIDE THE PART FUNDING DEBT, IT IS PRIMARILY FOR PERSONNEL EXPENSES.
THE FEW ONGOING THAT YOU'LL SEE IN YOUR GENERAL FUND SLIDE WITH THE SUPPLEMENTAL PACKAGES, THE MAJORITY OF IT IS PERSONNEL RELATED.
>> WE WROTE WE WERE SUPPOSED TO WRITE OUR CONGRESSMAN LAST WEEK.
I BELIEVE OUR CITY MANAGER PROVIDED US WITH SOME NUMBERS.
COULD YOU GO OVER THOSE NUMBERS CAUSE I THINK THEY'RE VERY IMPORTANT? [LAUGHTER] WELL, THESE NUMBERS WERE STOLEN. BUT THEY WERE REALLY GOOD.
THEY POINTED OUT THE INFLATION RATE AND WHERE WE WERE AND WHY WE NEEDED THEM NOT TO MESS WITH THE CITIES, BASICALLY.
>> WELL, AND I THINK JUST IN GENERAL WHAT HE'S TRYING TO DO IS RIGHT NOW, WE HAVE A 3.5%, WHICH IS THE DIFFERENCE BETWEEN THE NONE REVENUE AND THE VOTER APPROVAL RATE.
WHAT HE'S TRYING TO DO IS LOWER THAT TO 2.5% IS WHAT IS BEING CURRENTLY PROPOSED IN THE SPECIAL SESSION.
IF YOU THINK ABOUT JUST IN GENERAL, WHAT WE'RE TALKING ABOUT, I'LL USE POLICE AND FIRE AS AN EXAMPLE.
TYPICALLY, THE DISTANCE BETWEEN THEIR STEPS IS ABOUT 3%.
WELL, IF HE LOWERS THAT TO 2.5%, THAT RIGHT THERE, WE CAN'T FUND A STEP INCREASE FOR POLICE AND FIRE, JUST THAT ALONE.
[00:35:03]
THEN IF YOU THINK ABOUT JUST THE INFLATIONARY RATES THAT WE'VE EXPERIENCED OVER THE LAST SEVERAL YEARS, 04, 5 I THINK IT WAS 9% ONE YEAR.WHAT'S HAPPENING AT THE STATE LEVEL IS REALLY CHALLENGING FOR CITIES, IN PARTICULAR, BECAUSE IT'S CHALLENGING FOR US TO BE ABLE TO FUND INFLATIONARY INCREASES THAT YOU'RE EXPERIENCING IN YOUR OWN PERSONNEL BUDGET, EVEN WITH THE 3.5%, AND NOW HE'S WANTING TO LOWER IT TO 2.5%.
THAT'S WHY WE REACHED OUT TO YOU TO GET YOUR SUPPORT.
UNFORTUNATELY, IT DID PASS THAT LOCAL GOVERNMENT COMMITTEE, 4:1.
THAT DOESN'T MEAN IT'S GOING TO PASS ALTOGETHER, BUT THAT IT DID PASS THE SENATE AND LOCAL GOVERNMENT COMMITTEE.
>> IT'S AN AMENDMENT THAT IT WAS FOR [INAUDIBLE].
THEY DID DO A CARVE OUT FOR PUBLIC SAFETY.
I DON'T KNOW HOW IN THE WORLD YOU'RE GOING TO CALCULATE YOUR TAX RATE AND CARVE OUT PUBLIC SAFETY BUT THEY DID.
>> BECAUSE THEY DON'T HAVE TO DO IT.
THEY LEFT IT TO US TO FIGURE OUT.
>> 1.3 MILLION IS THE INCREASE IN REVENUE, BUT WALK ME THROUGH THE MATH.
IF $0.01 IS 603,000, AND WE'RE GOING UP 0.019, SHOULDN'T IT BE MORE LIKE 1.2 MILLION?
>> IF $0.01 IS ABOUT 603,000, WE'RE RAISING IT FROM THE NO NEW REVENUE RATE TO THE VOTER APPROVAL RATE.
THAT'S THE GENERAL FUND AND THE DEBT FUND.
REALLY FOR THE GENERAL FUND, IT'S GOING TO BE THAT $0.02.
I'VE GOT TO DO THAT MATH IN MY HEAD REAL QUICK.
>> WHEN WE'RE TALKING GENERAL FUND, THAT NUMBER IS A LITTLE BIT DIFFERENT?
>> YOU DID THE MATH. [LAUGHTER] YES.
>> THAT'S WHY I WANT TO MAKE SURE THAT'S WHERE I'M AT.
>> I JUST WANT TO BE FOCUSED ON THAT GENERAL FUND BECAUSE THAT'S THE PERTINENT CONVERSATION HERE WHEN WE TALKS TAX RATE.
>> WE'RE LOOKING THAT $0.02 RIGHT THERE IS GENERAL FUND, SO IT'D BE 1.2.
>> ANY OTHER QUESTIONS ON TAX RATE? I THINK WE'RE GOOD.
>> ABSOLUTELY. LET ME PULL UP BRADY'S SLIDE.
I WENT TOO FAR. I KNOW. I'M ADVANCING IT FOR YOU.
>> FIRST UP IS THE GENERAL FUND.
THAT IS GOING TO BE THE MOST FLEXIBLE FUND THAT WE HAVE.
YOU CAN SPEND THAT MONEY ON THE MOST AVAILABLE THINGS.
IT'S ALSO THE FUND THAT'S NORMALLY GOING TO PROVIDE ALL THE FUNDING FOR THINGS YOU TYPICALLY THINK A CITY DOES, POLICE, FIRE, PARKS, LIBRARY.
THAT'S ALL GOING TO COME OUT OF THE GENERAL FUND.
THIS JUST SHOWS OUR GENERAL FUND REVENUES AND EXPENDITURES YEAR OVER YEAR.
IN GENERAL, YOU WANT TO SEE THAT BLUE LINE REVENUES BEING ABOVE EXPENDITURES.
YOU'LL NOTICE IT HASN'T BEEN THE CASE THE LAST COUPLE OF YEARS.
THAT'S BECAUSE WE'VE BEEN CASH FUNDING, SOME ONE TIME PROJECTS THE LAST TWO YEARS.
OUR FUND BALANCE WAS A LITTLE BIT ABOVE WHAT OUR MINIMUM GOOD POLICY VALUE IS.
WE WANTED TO USE THAT MONEY TO TAKE CARE OF SOME ONE TIME ISSUES THAT HAVE BEEN OUTSTANDING.
TAKE A LOOK AT WHERE THE MONEY COMES FROM.
MOST OF OR ABOUT HALF OF THE REVENUE COMES IN FROM PROPERTY TAX.
THAT'S REALLY THE ONLY REVENUE SOURCE WE HAVE DIRECT CONTROL OVER, AND WE DON'T EVEN REALLY HAVE DIRECT CONTROL OVER IT BASED ON STATE REGULATION.
SALES TAX, FRANCHISE TAX, CHARGES FOR SERVICES.
WE'RE REALLY AT THE WILL OF THE MARKET IN THOSE.
WE'RE GUESSING THOSE REVENUE NUMBERS, WHILE THE PROPERTY TAX NUMBERS ARE SOMETHING WE'RE MORE CERTAIN OF.
OUR EXPENDITURES AS KAREN MENTIONED, MOST OF OUR MONEY GOES TO POLICE AND FIRE.
ABOUT THREE FOURTHS OF THE MONEY GOES TO THINGS YOU SEE OUTSIDE ON A DAY TO DAY BASIS.
YOUR LIBRARY, YOUR PARKS AND REC, YOUR STREETS.
THEN ABOUT A QUARTER OF IT IS SUPPORTING THOSE PEOPLE, MAKING SURE THAT THEY'RE BEING PUT IN THE PLACE WHERE THEY CAN SUCCEED AND FOCUS ON THEIR DAY TO DAY JOBS AS OPPOSED TO MUCH OF THE ADMINISTRATIVE THINGS AROUND IT.
YOU MAY NOTICE IT'S AT 50.4, WHICH IS MORE THAN REVENUE OF 495.
OUR ONE TIME EXPENDITURES WERE 828,000.
IF YOU TAKE THAT OUT, WE'RE ABOUT $1,000 WITHIN BEING A PERFECTLY BALANCED BUDGET.
WE WANT OUR ONGOING REVENUES TO BE EQUAL TO OUR ONGOING EXPENDITURES.
[00:40:03]
IT'S ABOUT AS TIGHT AS IT POSSIBLY COULD BE THIS.WE'RE GOING UP TO THE VOTER APPROVAL RATE.
WE CAN'T GO HIGHER WITHOUT AN ELECTION.
THIS IS THE OVERALL CONTEXT OF THE GENERAL FUND BUDGET WE'RE LOOKING AT.
IF WE ARE ABLE TO LOWER OUR PROPERTY TAX RATE, IT'S GOING TO HAVE A ONE TO ONE CONNECTION ON SOMETHING WE CAN'T PAY FOR GOING FORWARD.
ANY REVENUE REDUCTION IS GOING TO HAVE TO HAVE AN EXPENDITURE REDUCTION IN ORDER TO HAVE THAT BALANCED BUDGET THAT WE WANT TO BE ABLE TO COMMIT TO GOING FORWARD.
I WANT TO START OFF BY SOME OF THE GENERAL FUND DECREASES WE WERE ABLE TO DO.
GOING IN, WE KNEW PROPERTY TAX RATE VALUE WAS GOING TO BE FLAT.
IN ORDER TO GET ANY NEW REVENUE, WE'RE GOING TO HAVE TO HAVE A PROPERTY TAX INCREASE.
THAT'S A VERY DIFFICULT THING.
AS THE DIRECTORS, WE WANTED TO ALSO MAKE SOME DIFFICULT DECISIONS IN OUR OWN DEPARTMENTS.
WE WANT TO MAKE SURE WE WERE ABLE TO CONTINUE THE SAME LEVEL OF SERVICE THAT WE'VE BEEN PROVIDING, BUT WE WANT TO REALLY DIG DEEP INTO OUR BUDGETS TO MAKE SURE THAT WE WERE BEING THE MOST EFFICIENT WE COULD WITH OUR FUNDS.
DOES OFF SUPPLIES NEED TO BE AT THAT LEVEL? ARE WE REALLY GOING TO BUY THAT MUCH PAPER? MAYBE. WE DON'T PRINT AS OFTEN.
DO WE NEED TO GO TO THAT OUT OF STATE TRAINING THAT ALSO HAS OUT OF STATE TRAVEL, OR MAYBE WE CAN FIND SOMETHING IN DFW THAT'S A LITTLE BIT CHEAPER, AND WE STILL PROVIDE US A GOOD TRAINING LEVEL.
WE WENT THROUGH LINE ITEM BY LINE ITEM, AND THE DIRECTORS DID A GREAT JOB OF FINDING PLACES WHERE THEY COULD BE MORE EFFICIENT WITH THEIR FUNDS.
WE HAVE FIVE MAIN SPENDING CATEGORIES.
IT'S GOING TO BE SUPPLY, MAINTENANCE, CONTRACTUAL SERVICES, PERSONNEL UTILITIES.
PERSONNEL, WE LOOK AT THAT IN A SEPARATE PROCESS.UTILITIES, THEY DON'T REALLY HAVE CONTROL OVER.
ANYTHING THAT WE ACTUALLY HAD CONTROL OVER, WE FOUND AN OVERALL DECREASE IN THE GENERAL FUND BECAUSE WE WANTED TO MAKE SURE THAT WE WERE BEING AS RESPONSIBLE AS WE COULD WITH TAXPAYER MONEY.
>> I APPRECIATE YOU GUYS GOING THROUGH THAT AND REALLY JUST TIGHTENING THE BELT THERE AND FIGURING OUT, WHAT CAN WE CUT? I'M GLAD THAT WE WENT THROUGH SUPPLIES, MAINTENANCE, THE CONTRACT SERVICES AND SAID, AND PRESENTING THAT TO US, BECAUSE, HONESTLY, I DON'T THINK I REMEMBER A BUDGET CYCLE WHERE WE ACTUALLY HAD ALL COME UP AND TELL US WHAT YOU CUT?
>> THAT IS GOOD. I'M GOOD TO HEAR THAT.
>> EVERY DOLLAR COUNTED BECAUSE WE GOT WITHIN $1,000 OF IT BEING BALANCED.
WITHOUT THIS, WE COULD NOT HAVE PRESENTED TO YOU A BALANCED BUDGET.
>> THERE ARE THREE SLIDES ON THE OVERALL GENERAL FUND REALLY INCREASES, THINGS WE WERE ABLE TO FUND THIS YEAR THAT WE WEREN'T ABLE TO FUND IN YEARS PAST.
THIS FIRST SLIDE IS GOING TO FOCUS ON THE PERSONNEL.
OF OUR 1.7 MILLION THAT WE HAVE AN INCREASED COSTS, OR INCREASED THINGS WE'RE ABLE TO FUND THIS COMING YEAR.
YOU'RE SEEING 1.35 RIGHT IN FRONT OF YOU.
THAT'S THE VAST MAJORITY OF INCREASES ARE GOING STRAIGHT TO OUR PEOPLE. THAT WAS OUR PRIORITY.
THAT'S WHY WE REDUCED SUPPLIES AND CONTRACTUAL SERVICE AND MAINTENANCE BECAUSE WE KNEW THAT WE WANTED TO TAKE CARE OF OUR PEOPLE IN THIS BUDGET.
MOST OF THAT'S GOING TO THE PUBLIC SAFETY SET PLAN, WHICH ALSO INCORPORATES THE COLA FOR OUR POLICE AND FIREFIGHTERS.
THE NEXT LARGEST CHUNK IS GOING TO BE, THE LARGEST IS OUR TRS, WHICH IS CLOSE TO 500 GRAND.
THEN THE REST IS GOING TO BE THE 3% COST OF LIVING ADJUSTMENT.
WE NORMALLY LOOK AT HR STUDIES COMPARING POSITIONS ACROSS CLASSES AND MAKING SURE THAT EVERYONE IS BEING PAID APPROPRIATELY AND EQUITABLY TO THE OTHER PEOPLE IN CLASSES.
ANY CUTS THAT WE WOULD POTENTIALLY TRY TO MAKE THIS IS WHERE THE MONEY IS.
>> VERY GOOD. WHEN WE'RE LOOKING AT THIS, I'M LOOKING AT ADDING EVERYTHING UP GOING UP, TOO, SO THAT IS WHY WE HAD TO CUT THE 211,000 IS TO MAKE IT BECAUSE OF THESE RIGHT HERE.
>> YOU'RE GOING THROUGH IT AND YOU'RE SUBTRACTING THE 1.2 MILLION, THAT'S WHERE THAT COMES IN AT.
IF ANY CUTS ARE GOING TO BE MADE OR ANYTHING OF THAT SORT IS COMING OUT OF THIS OR ANYTHING THAT IS AN ONGOING EXPENSE FOR THE CITY.
>> OUR PRIMARY FOCUS IS GOING TO BE ON THESE ONGOING AMOUNTS.
THAT'S WHAT GOES INTO MAKING SURE WE HAVE A BALANCED BUDGET.
THE ONE TIMES, WE DO HAVE SOME EXCESS FUND BALANCE, SO WE'RE ABLE TO FUND THOSE, BUT ONGOING IS WHAT WE'RE CONCERNED ABOUT BECAUSE WE HAVE TO MAKE SURE WE HAVE ENOUGH MONEY TO PAY THAT NEXT YEAR AND THE YEAR AFTER AND THE YEAR AFTER THAT.
>> REAL QUICK. FOR THE PUBLIC SAFETY STEP PLAN, 3% NON-SWORN COST OF LIVING ADJUSTMENTS, THE COLA.
THIS IS OBVIOUSLY OUR COST OF LIVING ADJUSTMENTS FOR OUR CURRENT EMPLOYEES.
>> WHAT'S THE TOTAL ON ALL THAT? JUST SO PEOPLE GET AN IDEA OF THE AMOUNT.
BECAUSE USUALLY EVERY YEAR, WHEN IT COMES TO BUDGET, THE MAJORITY OF THAT INCREASE IS THE COST OF LIVING ADJUSTMENTS FOR OUR EMPLOYEES, THE DOLLAR AMOUNTS.
WHAT IS THAT DOLLAR AMOUNT FOR THE STEP PLAN AND THE 3%?
[00:45:02]
>> EIGHT HUNDRED AND TWENTY. THAT RIGHT THERE, SO THOSE WHO ARE FOLLOWING ALONG WHEN WE TALK ABOUT A CENT ON THE TAX RATE, THAT'S OVER A CENT RIGHT THERE.
JUST TO GIVE OUR EMPLOYEES THE COST OF LIVING ADJUSTMENTS THAT THEY DESERVE EVERY YEAR.
I JUST WANT TO MAKE THAT CLEAR TO EVERYBODY.
>> THIS TYPE OF A BUDGET, ARE WE STILL MAINTAINING THE 20% RESERVE?
>> THAT'S FOR UPCOMING EXPENSES BASED ON WHAT, THE THREE MONTH, OR HOW DOES THAT WORK THE RESERVE?
>> THAT'S HOW MUCH MONEY WE HAVE AVAILABLE BASED ON OUR EXPENDITURES FOR THE COMING YEAR?
>> BUT WE'RE STILL GOOD ON THAT AT THE 20%?
>> YES. I WOULD NEVER PRESENT A BUDGET THAT WE WERE GOING BELOW POLICY.
>> WOULD YOU SAY $1000. THAT'S PRETTY CLOSE.
>> IT'S PRETTY CLOSE. THANK YOU.
>> NEXT UP, WE'RE JUST GOING TO WALK THROUGH A FEW REFUNDS.
WE HAVE THESE SETUP AND FUND ORDER.
I'M NOT GOING TO TALK ABOUT EACH AND EVERY ONE OF THEM, BUT I CAN PROVIDE SOME HIGHLIGHTS AS YOU DIGEST THIS AND IF YOU HAVE ANY FURTHER QUESTIONS, WE CERTAINLY HAVE ALL THE DIRECTORS HERE AND THEY'D LOVE TO WEIGH IN, I'M SURE.
I'D LIKE TO POINT OUT THE MANAGED SECURITY SERVICES.
RIGHT NOW, WE'RE NOT ABLE TO MONITOR FIREWALL 247.
THIS WOULD LET US DO THAT AT A FAIRLY REASONABLE PRICE TO PROVIDE A LOT MORE PROTECTION.
THE WORLD'S INCREASINGLY ON COMPUTERS, AND WE WANT TO MAKE SURE THAT WE'RE PROTECTING OUR INFORMATION.
ALSO, I WANT TO HIGHLIGHT THE NEW NEIGHBORHOOD SERVICE OFFICER.
THAT'S GOING TO BE OUR ONLY NEW EMPLOYEE IN THE BUDGET.
WE KNOW THIS IS A PRIORITY OF YOURS IS CODE ENFORCEMENT AND MAKING SURE THAT OUR NEIGHBORHOODS ARE BEING TAKEN CARE OF.
I THINK THAT WOULD GO A LONG WAY AND BE ABLE TO HELP IMPROVE THAT SERVICE LEVEL.
A LOT OF THE POLICE ITEMS. THOSE ARE GOING TO BE ITEMS THAT ARE GOING TO HELP FUND THINGS ALREADY IN PLACE, BUT THESE ARE INCREASES OR EXTENSIONS, MAKING SURE THAT THEY'RE ABLE TO CONTINUE DOING THE WONDERFUL WORK THAT THEY DO IN THE POLICE DEPARTMENT.
NEXT UP, WE HAVE A COUPLE OF BIG FIRE PURCHASES, BUT THOSE ARE GOING TO BE ONE TIME, SO THAT DOESN'T REALLY FACTOR INTO OUR ONGOING RATE DISCUSSION.
THE STRIKER EMS IS GOING TO BE OUR BIGGEST TICKET ITEM.
THIS IS TO HELP REPLACE AND KEEP UP TO DATE A LOT OF THE PARAMEDIC EQUIPMENT THAT THEY USE ON A DAY TO DAY BASIS.
THIS IS A LEASE PROGRAM WHERE WE GET THE EQUIPMENT FOR A DOLLAR AT THE END OF IT.
I NORMALLY DON'T LOVE A LEASE PROGRAM, BUT WE REALLY DUG INTO THIS OVER THE LAST COUPLE OF YEARS, AND I THINK IT'S THE MOST COST EFFECTIVE METHOD TO MAKE SURE THAT THEY ARE ABLE TO HAVE THOSE LIFE LIFE SAVING SUPPLIES WITH THEM AT ALL TIMES.
IF WE DON'T FUND AT THIS LEVEL, IT'S BEEN GOING UP EVERY YEAR, AND THEN WE JUST HAVE TO GO OUT AND PURCHASE ALL OF THIS, WHICH WOULD JUST BE A VERY LARGE SUM.
WE THINK THIS IS GOING TO BE THE MOST RESPONSIBLE WAY TO CONTINUE TO MAKE SURE THAT EQUIPMENT'S BEING KEPT UP TO DATE.
A FEW OF THESE ITEMS ARE JUST COSTS THAT HAVE BEEN GOING UP.
COST MORE TO KEEP OUR CURRENT SERVICE LEVELS.
WE JUST WANT TO ADJUST THE BUDGET TO MAKE SURE THAT WE'RE APPROPRIATELY PLANNING FOR THAT.
THAT WOULD BE HVAC MAINTENANCE WOULD BE AN EXAMPLE OF THAT.
THEN WE'RE INCREASING SENIOR FIELD TRIPS, WHICH IS ALWAYS FUN.
THOSE ARE THE THREE MAIN CHANGE SLIDES, BUT IF YOU HAVE ANY SPECIFIC QUESTIONS, HAPPY TO DIG INTO ANY OF THESE.
>> SINCE WE'RE ALREADY ON IT, THESE ARE THE SUPPLEMENTALS THAT ARE REQUESTED.
THIS IS JUST INCLUDING JUST THE GENERAL FUND CHANGES.
>> WHEN IT COMES TO OTHER THINGS LIKE THAT WERE INCLUDED, THOSE ARE COMING OUT OF DIFFERENT FUNDS.
SENIOR FIELD TRIPS, THOSE ARE COMING OUT OF GENERAL FUNDS.
>> THAT'S GOING TO BE THE LONG-SHORT OF IT ON THE GENERAL FUND.
THOUGH, HAPPY TO ANSWER ANY MORE QUESTIONS, OR WE CAN MOVE ON.
>> ANY QUESTIONS ON? WE'RE MOVING ALONG.
>> NEXT UP, WE HAVE OUR LONG RANGE FORECAST.
EACH DECISION YOU MAKE TODAY IS GOING TO HAVE A LONG LASTING EFFECT YEAR AFTER YEAR.
IF WE GIVE EMPLOYEES AN INCREASE THIS YEAR, THEY'RE GOING TO HAVE THAT SAME INCREASE NEXT YEAR.
WE WANT TO MAKE SURE THAT YOU SEE THE IMPACT OF YOUR DECISIONS ON A DAY TO DAY OR ON A YEAR TO YEAR BASIS.
THIS IS SHOWING WHAT WE NEED TO HAPPEN IN ORDER TO KEEP A BALANCED BUDGET OVER THE NEXT FIVE YEARS.
WE DID HAVE TO MAKE A FEW, NOT OVERLY AGGRESSIVE REVENUE PREDICTIONS, BUT WE WOULD NEED THE ECONOMY TO CONTINUE TO MOVE FORWARD AND BE ABLE TO CONTINUE TO BE ABLE TO INCREASE THAT REVENUE IN ORDER TO DEAL WITH ANY INFLATION AND ANY COST OF LIVING ADJUSTMENTS GOING FORWARD.
BUT WE'RE ABLE TO MAINTAIN WHAT WE'VE BEEN DOING THE LAST COUPLE OF YEARS.
WE ARE STILL GOING TO BE IN A GOOD BALANCED POSITION GOING FORWARD.
[00:50:05]
>> NEXT UP IS THE DEBT SERVICE FUND.
THIS IS WHERE WE GET ALL THE MONEY TO ACTUALLY DO CAPITAL PROJECTS IN THE CITY.
SO STREETS, PARKS, FIRE STATION, POLICE STATION.
WE'RE GOING TO BE FUNDING MOST OF THIS OUT OF DEBT ISSUANCES.
WE DO HAVE THE LIST OF ALL THE DEBT ISSUANCES AND PAYMENTS COMING UP.
IT'S A LITTLE LESS THAN LAST YEAR, BUT LAST YEAR, WE USED SOME FUND BALANCE.
THAT RATE ACTUALLY DID END UP INCREASING BECAUSE WE AREN'T ABLE TO USE THAT FUND BALANCE AGAIN.
WE WANT TO BE ABLE TO MAKE SURE WE'RE PAYING WHAT WE OWE.
AS YOU CAN SEE IN THIS, THE DARK BLUE IS THE GENERAL FUND PROPERTY TAX-BASED DEBT SERVICE.
WE ARE PAYING ABOUT THE SAME LEVEL GOING FORWARD FOR THE NEXT SEVERAL YEARS.
IN ORDER TO BE ABLE TO AFFORD ANY NEW CAPITAL PROJECTS, WE'RE GOING TO HAVE TO SEE PROPERTY TAX GROWTH.
THERE'S A GOOD CHANCE IN TWO YEARS, WHENEVER THEY FINALLY REAPPRAISE THE PROPERTIES AND THEY GO UP A FAIR AMOUNT, THAT'S THE GROWTH THAT WE CAN NEED TO BE ABLE TO MAYBE ALSO LOWER OUR RATE AND FUND SOME OF THESE CAPITAL PROJECTS THAT ARE OUTSTANDING.
MOVING ON TO OUR ENTERPRISE FUNDS, UNLESS ANYONE HAS ANY QUESTIONS.
ENTERPRISE FUNDS ARE THE FUNDS WE TREAT LIKE A BUSINESS.
>> [BACKGROUND] BY 2031, I ASSUME THAT TAX RATE WILL HAVE TO GO UP.
>> THIS IS ASSUMING 3.5% GROWTH YEAR AFTER YEAR.
>> EACH YEAR. EACH YEAR FROM 26 UP TO 31, YOU'D HAVE TO HAVE 3% INCREASE IN YOUR TAX RATE.
THIS COULD BE A FLAT TAX RATE, BUT TAXABLE VALUES HAVE TO AVERAGE 3.5% EACH YEAR.
>> ENTERPRISE FUNDS. THESE ARE LIKE BUSINESSES THAT DON'T EARN A PROFIT.
THEY ARE MEANT TO PERFECTLY PAY FOR THEMSELVES AND ONLY CHARGE THE MINIMUM RATE REQUIRED TO PAY FOR THE EXPENSES THAT ARE NEEDED TO OPERATE THAT SYSTEM.
THIS IS GOING TO BE STORMWATER, WATER, WASTEWATER.
ALSO, WE DO HAVE NEWGEN, OUR RATE CONSULTANTS WITH US HERE.
I'M GOING TO TURN IT OVER TO THEM IN THE NEXT COUPLE MINUTES, BUT WE WANT TO DO A HIGH-LEVEL OVERVIEW FIRST BEFORE WE GET INTO THE RATES.
I THINK THEY'RE GOING TO DO A GOOD JOB OF JUST PROVIDING COMPARISONS IN A FAIRLY QUICK MANNER.
WATER AND SEWER FUND, ALL THE REVENUE IS COMING FROM THE UTILITY BILL.
WE DON'T REALLY HAVE ANY OTHER OUTSIDE SOURCES FOR THIS.
IT'S CAN BE WATER CHARGES GOING TO SEWER CHARGES.
IF YOU LOOK AT THE EXPENDITURES, WE DON'T REALLY CONTROL MOST OF THIS.
SEWER TREATMENT AND WATER PURCHASE, THAT'S 62% OF THE BUDGET.
DEBT SERVICE, THAT'S ALL THE PIPES WE HAVE IN THE GROUND.
OF THE BUDGET, 15% OF IT, WE REALLY HAVE CONTROL OVER 10% OF THAT'S PEOPLE.
SO 5% OF OUR TOTAL WATER AND SEWER BUDGET IS NOT PEOPLE.
WE DON'T REALLY HAVE A LOT OF WIGGLE ROOM WHENEVER WE'RE CONSIDERING CHANGES TO OUR WATER AND SEWER FUND, IF WE WANT TO BE ABLE TO KEEP OPERATING AND KEEP MAKING SURE OUR CITIZENS HAVE WATER WHENEVER THEY TURN THE TAPS.
WE DID HAVE SOME CHANGES IN COST.
THEY GET THE SAME COST-OF-LIVING ADJUSTMENT AS EVERYONE ELSE.
IT DOESN'T COST QUITE AS MUCH BECAUSE THERE'S FEWER PEOPLE IN THAT FUND.
BUT YOU CAN SEE THE BIG DRIVER IS $4.8 MILLION IN WATER CHARGES.
SOME OF THAT IS THE RATE INCREASE.
SOME OF THAT IS LAST YEAR, OUR USAGE REALLY SPIKED AS A CITY, AND WE BUDGETED FOR THIS CURRENT YEAR THAT WOULD GO BACK TO NORMAL, KIND OF WHAT WE SAW IN THE PAST.
BUT PEOPLE JUST KEPT USING A LOT MORE WATER.
WE ARE BUDGETING LIKE PEOPLE ARE GOING TO BE USING MORE WATER NEXT YEAR.
THAT'S ONE OF THE BIG DRIVERS IN THAT 4.8 MILLION.
SINCE WE BILL ALL OF IT, IT'S GOING TO BE A CORRESPONDING REVENUE INCREASE.
BUT THIS IS MONEY. WE'RE NOT GOING TO SPEND IT IF PEOPLE DON'T USE WATER.
WE'RE ONLY SPENDING MONEY FOR WHAT WE GET.
THAT COULD COME IN LOWER OR IT COULD COME IN HIGHER.
IT JUST REALLY DEPENDS IF IT'S A DRY YEAR, WET YEAR, PEOPLE'S HABITS CHANGE.
THESE NEXT TWO ARE JUST RATE SLIDES.
I WANT TO MAKE SURE IT MADE THE OFFICIAL BUDGET PRESENTATION, BUT NEWGEN IS ABOUT TO COME UP AND GIVE SOME MORE DETAILS ON THESE.
>> GOOD EVENING, MARY, COUNSEL.
CHRIS SECRET WITH NEWGEN, PLEASURE TO BE WITH YOU AGAIN THIS EVENING.
I'M DOING MY GREAT TOUR OF THE DFW METROPLEX.
THIS TIME OF YEAR, LIKE I DO EVERY YEAR.
I'M TELLING EVERYBODY, COSTS ARE GOING UP, RATES ARE GOING UP, JUST AS YOU'VE ALREADY SEEN.
AGAIN, A LOT OF WHAT I'M GOING TO GO THROUGH TONIGHT WE'VE TALKED ABOUT BEFORE, BUT I WILL REMIND YOU AGAIN, JUST AS BRADY SAID,
[00:55:02]
WE ARE LOOKING AT THE ENTERPRISE FUND AS A BUSINESS.AS WE LOOK AT THAT BUSINESS, WE NEED TO LOOK AT SEVERAL THINGS HERE.
NUMBER 1, REVENUE SUFFICIENCY.
WE HAVE TO MAKE SURE WE'RE GENERATING SUFFICIENT REVENUE.
WE LOOK AT A METRIC CALLED DEBT SERVICE COVERAGE.
YOU HAVE MADE PROMISES TO YOUR BONDHOLDERS.
WE WANT TO MAKE SURE WE CAN MEET THOSE PROMISES.
WE HAVE TO MAKE SURE THAT OUR RATES ARE SET, SO WE CAN PAY OUR DEBT.
FINALLY, WE LOOK AT OUR RESERVE POSITION.
YOU STRIVE TO MAINTAIN A 90 DAYS CASH ON HAND POSITION.
YOU'RE IN A GOOD POSITION RIGHT NOW.
WE WANT TO KEEP YOU IN THAT GOOD POSITION.
AS WE HAVE ESTABLISHED THE RATE PLAN THIS YEAR, A COUPLE OF THINGS THAT WE'VE DONE.
ALL OF THE INCREASES ASSOCIATED WITH TRA, WE ARE PASSING THROUGH IN THE VOLUMETRIC COMPONENT OF THE RATE.
YOUR RATES TO YOUR CUSTOMERS HAVE TWO COMPONENTS.
ALL OF THE TRA COST IS PASSED THROUGH IN THE VARIABLE CHARGE.
CUSTOMERS THEY USE MORE PAY MORE.
JUST AS BRADY SAID, "IF CUSTOMERS DON'T USE THAT WATER, THEY WON'T HAVE TO PAY FOR IT." AGAIN, WE'VE TIED THAT TOGETHER, TRYING TO SEND THAT PRICE SIGNAL TO CUSTOMERS.
BUT AS WE GO THROUGH, AGAIN, KEY DRIVERS, OF COURSE, TRA EXPENSES.
THAT'S ONE OF THE KEY DRIVERS.
I WENT AND LOOKED AT TRAS BUDGET TODAY, WHY ARE THEIR COSTS GOING UP? I BELIEVE THERE'S ABOUT SIX NEW EMPLOYEES ON THE WATER SYSTEM THAT THEY'RE LOOKING AT.
THEIR INSURANCE COST IS GOING UP.
THE COST OF RAW WATER FROM TARRANT REGIONAL WATER DISTRICT, WHICH IS PASSED THROUGH TO TRA, GETS PASSED THROUGH TO YOU.
ULTIMATELY, THAT IS DRIVING THEIR BUDGET.
BUT THE BIG KEY DRIVER THAT I NOTICED IN THEIR BUDGET, THEY HAVE OVER 91 OR ALMOST $91 MILLION IN CAPITAL INVESTMENT.
PLANNED ON THE WATER SYSTEM NEXT YEAR.
YOU'RE PAYING YOUR PRO RATA SHARE OF THAT.
AGAIN, THAT'S WHY YOU'RE SEEING THESE INCREASES AT THESE LEVELS.
TRA PROVIDES THESE PROJECTIONS.
WE'RE NOT HOPEFULLY GOING TO SEE COST INCREASES AT THIS LEVEL IN THE FUTURE, BUT THERE WILL BE CONTINUED INCREASES AS WE GO FORWARD.
THIS IS A REFLECTION OF WHAT WE SEE ALL OVER THE UNITED STATES.
WE NEED MORE INVESTMENT IN INFRASTRUCTURE.
I'M SURE YOU'VE SEEN IN THE NEWS, YOU SEE ALL OF THESE RATINGS THAT COME OUT ABOUT OUR INFRASTRUCTURE.
WE HAVE NOT ADEQUATELY, AS A COUNTRY, INVESTED IN OUR INFRASTRUCTURE.
THAT'S WHY YOU SEE THE COST INCREASES THAT YOU'RE SEEING NOW.
WE REALLY ARE PLAYING CATCH-UP WHEN WE THINK ABOUT OUR WATER WASTEWATER SYSTEMS. AGAIN, TRA IS A KEY DRIVER AS WE LOOK AT THE RATE PLAN GOING INTO NEXT YEAR.
>> WOULD YOU SAY THE MAJORITY OF THAT INCREASE IS COVERING THE 91 MILLION INFRASTRUCTURE INCREASE?
>> YES, SIR. WERE WE TO DO NOTHING? IF WE WERE TO HOLD RATES CONSTANT, YET WE EXPERIENCED THE COST INCREASES THAT WE'RE PROJECTING, THAT'S WHAT WE'RE LOOKING AT HERE.
WE'RE EFFECTIVELY TESTING OUR CURRENT RATES.
THAT TOP CHART, WHAT WE LOOK AT THERE IS THE SUFFICIENCY OF THE REVENUE STREAM.
THE VERTICAL BAR, THAT'S YOUR COST, THE HORIZONTAL LINE, THAT'S YOUR RATE REVENUE UNDER CURRENT RATES.
ANYTIME THE BAR GOES ABOVE THE LINE, OUR COST IS GREATER THAN OUR REVENUES.
THAT'S WHAT YOU'RE SEEING THERE IF WE HELD RATES CONSTANT.
BOTTOM LEFT-HAND CORNER, WE'RE LOOKING AT OUR RESERVES.
LIKE I SAID, RIGHT NOW, YOU'RE IN A GOOD RESERVE POSITION.
YOU SEE THE NUMBERS THERE TO THE LEFT, WE CALCULATE THAT YOU'RE AT ABOUT 117 DAYS' RESERVES RIGHT NOW.
WE WANT TO KEEP YOU IN A GOOD RESERVE POSITION.
WITHOUT A RATE INCREASE, WE WOULD HAVE TO DRAW DOWN RESERVES.
WE WOULD COME BELOW THAT 90-DAY LEVEL, SO WE DON'T WANT TO DO THAT.
FINALLY, IN THE BOTTOM RIGHT-HAND CORNER, WE LOOK AT DEBT SERVICE COVERAGE.
IF WE DID NOT INCREASE RATES, WE WOULD NOT BE IN A POSITION TO EFFECTIVELY MEET OUR OBLIGATIONS TO OUR BONDHOLDERS.
AGAIN, ALL OF THIS POINTS DO WE NEED TO INCREASE RATES GOING FORWARD.
AS WE LOOK AT DESIGNING RATES GOING INTO NEXT YEAR, WE ARE PROPOSING FOR YOU A COUPLE OF DIFFERENT CHANGES.
ON THE WATER VOLUMETRIC SIDE, AGAIN, TWO-PART RATE, FIXED CHARGE, VARIABLE CHARGE.
ON THE WATER VOLUMETRIC SIDE, YOU HAVE A TIERED STRUCTURE THAT APPLIES TO YOUR RESIDENTIAL AND YOUR IRRIGATION CUSTOMERS.
WHAT I MEAN BY THAT, IT'S AN INCLINING BLOCK RATE OR A CONSERVATION-BASED RATE.
THE UNIT PRICE INCREASES AT DIFFERENT TIER LEVELS AS YOU USE MORE WATER, AND I'M GOING TO SHOW YOU WHAT THIS LOOKS LIKE IN JUST A SECOND.
BUT THAT UNIT PRICE INCREASE RIGHT NOW IS JUST 15% BETWEEN THE TIERS.
WE'RE PROPOSING THAT YOU INCREASE THAT UNIT PRICE DIFFERENTIAL TO 25%.
WHAT THAT DOES IS PUSHES MORE REVENUE RECOVERY TO THOSE HIGHER TIERS.
THOSE THEY USE MORE PAY MORE, AND WE WANT TO SEND THAT CONSERVATION SIGNAL TO OUR CUSTOMERS.
IF THEY USE WATER WISELY, THEY CAN REDUCE COSTS LONG-TERM BECAUSE, AGAIN,
[01:00:01]
WE CAN PULL DOWN SOME OF THOSE COST INCREASES FROM TRA.I'LL POINT THIS OUT AGAIN WHEN WE GET TO THE RATE SCHEDULES, BUT THAT'S THE FIRST RECOMMENDATION IS TO BASICALLY INCREASE THE SLOPE OF THAT CONSERVATION SIGNAL THAT WE'RE SENDING TO CUSTOMERS.
THE SECOND RECOMMENDATION WE HAVE FOR YOU IS ON YOUR SENIOR RATES.
AS WE'VE ADJUSTED RATES OVER TIME, WE'VE LOST A CONE, A SOLID CONNECTION BETWEEN THE RESIDENTIAL RATE AND THE SENIOR RATE.
WHEN YOU LOOK AT THE MINIMUM BILL, THE SENIOR MINIMUM BILL IS SLIGHTLY OVER 90% OF THE RESIDENTIAL BILL, WHEN YOU'RE LOOKING AT THAT MINIMUM CHARGE.
WHAT WE WANT TO DO IS TIE THOSE TOGETHER AND SAY THAT THE SENIOR MINIMUM BILL WILL BE 90% OF THE REGULAR RESIDENTIAL FIXED CHARGE BILL.
I'LL POINT THIS OUT WHEN WE GET TO THE ACTUAL RATE SCHEDULES.
BUT WHAT THIS DOES IS JUST PROVIDES A BENCHMARK.
WE MAKE SURE THAT WE'RE MAINTAINING THAT DISCOUNT.
AS WE GO UP ON THE RATE FOR OUR RESIDENTIAL CUSTOMERS, WE ARE STILL MAINTAINING THE RELATIONSHIP AND THE APPROPRIATE DISCOUNT FOR OUR SENIOR CUSTOMERS.
THAT'S THE SECOND RECOMMENDATION WE HAVE FOR YOU WHEN WE LOOK AT THE RATE SCHEDULES.
ON THE COMMERCIAL SIDE, WE'RE RECOMMENDING THAT YOU SET THEIR RATE.
THEY ARE NOT ON A TIERED STRUCTURE.
THEY ARE ON A FLAT VOLUMETRIC RATE STRUCTURE, WHICH MAKES SENSE FOR OUR COMMERCIAL CUSTOMERS BECAUSE WE DON'T WANT TO PENALIZE CUSTOMERS THAT MAY BE USING WATER IN THE PRODUCTION OF ECONOMIC ACTIVITY.
THEY ARE ON A FLAT, UNIFORM VOLUMETRIC RATE.
WE'RE RECOMMENDING THAT YOU SET THAT VOLUMETRIC RATE, AND YOU TIE IT TO THE SECOND-TIER RESIDENTIAL RATE.
AGAIN, JUST PROVIDING SOME SOLID STRUCTURE UNDER OUR RATE DESIGN, AS WE MAKE CHANGES GOING FORWARD, WE CAN MAINTAIN THE CONSISTENCY IN THESE RATE DESIGN STRUCTURES GOING FORWARD.
FINALLY, OUR FOURTH RECOMMENDATION IS TO COME IN, AND WHEN WE LOOK AT YOUR FIXED CHARGE ON THE COMMERCIAL SIDE, IT ESCALATES BASED ON THE SIZE OF THE METER.
THE CONCEPT HERE IS, AS THE METER GOES UP, AS THE METER IS LARGER, IT CAN DEMAND MORE WATER.
AS IT CAN DEMAND MORE WATER, YOU AS THE CITY, HAVE TO BE POSITIONED TO PROVIDE CAPACITY.
YOU HAVE TO PROVIDE INFRASTRUCTURE.
YOUR INFRASTRUCTURE HAS TO BE IN PLACE TO FULLY SERVE THAT CUSTOMER.
AS THAT METER SIZE GOES UP, YOUR COST GOES UP.
WE WANT TO TIE THIS TOGETHER AND MAKE SURE WE'RE SENDING AN APPROPRIATE SIGNAL TO THOSE LARGER METERS.
IF YOU HAVE A LARGER METER, YOU CAUSE OUR COST TO GO UP, WE WANT TO MAKE SURE YOU'RE PAYING MORE THAN JUST THE AVERAGE CUSTOMER.
AGAIN, I WILL POINT OUT ALL OF THESE AS WE GET INTO THE RATE SCHEDULES HERE IN JUST A SECOND SO YOU CAN TIE THESE BACK TO NUMBERS.
BUT AS WE LOOK AT THAT RATE PLAN GOING FORWARD, YOU CAN SEE WE ARE RECOMMENDING ABOUT A 12.4% OVERALL REVENUE INCREASE WITHIN THE WATER AND WASTEWATER FUND GOING INTO NEXT YEAR.
WITH THIS RATE INCREASE, WE ARE IN A SLIGHTLY REVENUE-INSUFFICIENT POSITION, VERY SLIGHT. YOU SEE THAT THERE.
THE REVENUE REQUIREMENT, OUR COSTS 33.94 WITH RATE REVENUE OF 33.24, BUT OUR RESERVE POSITION IS STILL GOOD.
WE'D BE PULLING DOWN OUR RESERVES VERY SLIGHTLY.
BUT WE'RE STILL MAINTAINING A DAY'S CASH ON HAND POSITION OF 108 DAYS, AND WE'RE ABLE TO MEET OUR DEBT SERVICE OBLIGATIONS.
THIS BALANCES YOUR NEEDS WHILE WE ALSO BALANCE AFFORDABILITY TO OUR CUSTOMERS.
BUT ULTIMATELY, WHAT DOES THIS MEAN TO A CUSTOMER? WE START WITH A SUMMER BILL HERE.
THIS IS ASSUMING 11,100 GALLONS OF WATER USE, 05,900 GALLONS OF WASTEWATER USE.
WASTEWATER IS BILLED ON A WINTER AVERAGE.
THAT'S WHY YOU SEE A LOWER VALUE THERE.
BUT ULTIMATELY, THAT BILL RIGHT NOW FOR 11,100 GALLONS OF WATER IN THE SUMMER, 123.65.
THAT'S THE WATER AND WASTEWATER BILL AT THE MOMENT.
WITH OUR RECOMMENDED RATE PLAN, WE WOULD TAKE THAT WATER AND WASTEWATER BILL TO JUST UNDER $135 A MONTH, 134.48, $6.59 OF THAT INCREASE IS ON THE WATER SIDE, 4.24 ON THE WASTEWATER SIDE.
BUT LET ME BRING YOU DOWN BELOW.
AGAIN, THIS IS A $10.83 MONTHLY INCREASE ON A SUMMER BILL.
AS YOU BREAK THAT DOWN, $9.37 OF THAT INCREASE IS DUE TO THE PASS-THROUGH FROM TRA.
AGAIN, THERE IS A SLIGHT INCREASE DUE TO CITY COSTS, BUT THE BULK OF THIS INCREASE REALLY IS DRIVEN FROM YOUR WHOLESALE COST INCREASE THAT WE TALKED ABOUT EARLIER.
>> MAKE IT. JUST POINTING THAT OUT AGAIN AND SUMMARIZING FOR THE RECORD AS THE WATCH POINT POINTING OUT.
AS YOU'RE AVERAGING OUT FOR A SUMMER BILL, IT'S $10.83 INCREASE.
THE CITY'S PORTION IS $1 OF THAT, BASICALLY.
>> LESS THAN $1.50 THAT'S FROM THE CITY.
[01:05:01]
>> WHEN YOU LOOK AT THE WINTER BILL, AGAIN, HERE WE'RE USING 5,900 GALLONS FOR A WINTER BILL, $8.13.
IT WOULD BE THE MONTHLY INCREASE ON A WINTER LEVEL BILL, $6.67 OF THAT 8.13 IS DUE TO THAT PASS THROUGH THE WHOLESALE COST INCREASE.
I SHOW YOU THESE CHARTS EVERY YEAR, AND I'M PRETTY SURE I SAY THE SAME THING EVERY YEAR.
WHEN WE LOOK AT OTHER COMMUNITIES, THIS IS NOT AN APPLES-TO-APPLES COMPARISON.
LIKE I SAID, EVERY COMMUNITY IS GOING THROUGH THIS SAME EXERCISE RIGHT NOW.
WHAT I'M LOOKING AT HERE IS YOUR PROPOSED FUTURE BILL AGAINST EVERYBODY ELSE'S BILL TODAY.
I GUARANTEE IF WE RERUN THIS CHART IN OCTOBER OR JANUARY OF NEXT YEAR, IT WILL LOOK DIFFERENT BECAUSE JUST AS YOU ARE EXPERIENCING INCREASES FROM YOUR WHOLESALE PROVIDER, OTHER CITIES ARE DOING THE SAME AS WELL, BECAUSE THEY HAVE THE SAME WHOLESALE PROVIDER.
WHAT YOU SEE HERE IS A COMPARISON IN THE MINIMUM BILL.
THIS IS THE BASE MINIMUM BILL, NO VOLUMES INCLUDED IN THAT MINIMUM BILL FOR YOU, AS THE CITY OF BEDFORD.
RIGHT NOW, 38.47 IS THAT MINIMUM BILL.
WE WOULD PROPOSE IN OUR RATE PLAN TO TAKE THAT TO 39.93.
AGAIN, YOU DON'T REALLY MOVE IN THIS COMPARISON AT THE MINIMUM BILL LEVEL.
BUT AGAIN, THAT DOES NOT INCLUDE ANY VOLUMES OF USE IN THAT BILL.
AS WE START TO LOOK AT AND ADD IN VOLUMES, THIS IS THAT SUMMER COMPARISON.
THIS IS THAT SUMMER BILL, 11,100 GALLONS.
RIGHT NOW, 123.65 IS THAT BILL.
OUR PROPOSED RATE PLAN TAKES THAT TO 134.48.
I WILL POINT OUT ON THIS LIST THAT EULESS, NORTH RICHLAND HILLS, COLLEYVILLE, KELLER, GRAPEVINE, ARE ALL TRA CUSTOMERS.
THEY ARE EXPERIENCING THE SAME COST INCREASES YOU ARE.
LIKELY, WE WILL PROBABLY SEE SOME MOVEMENT IN THIS CHART GOING FORWARD.
BUT AGAIN, THIS IS THE SUMMER CHART, 11,100 GALLONS OF WATER, THAT BILL GOING 123.65-134.
>> THE ONLY CUSTOMER OF TRA THAT IS LOWER THAN OURS IS COLLEYVILLE.
>> THEY ARE ALSO DIFFERENT IN TERMS OF THEIR TAX BASE, THEIR CUSTOMER BASE.
>> AGAIN, NOT APPLES TO APPLES, BUT JUST AGAIN, JUST POINTING IT OUT THAT THE ONLY TWO OTHERS LOWER THAN OURS IS GRAPEVINE AND COLLEYVILLE.
>> ALL THE OTHER ONES ARE EXPERIENCING THE SAME THINGS WE ARE.
>> THANK YOU. ON THAT WINTER BILL, 05,900 GALLONS, AGAIN, YOU'RE HIGHER HERE, BUT THAT REALLY IS DUE TO YOUR RATE STRUCTURE.
SOME COMMUNITIES PUSH MORE REVENUE RECOVERY INTO THAT VOLUMETRIC RATE.
THEY'VE HAD AN INCLINING BLOCK RATE FOR LONGER, AND THEY'VE PUSHED REVENUE RECOVERY TO THOSE UPPER TIERS.
WE ARE IN THE PROCESS WITH YOU OF COMING IN.
WE'VE ESTABLISHED THE INCLINING BLOCK RATE.
WE WOULD INCREASE THE INCLINE OF THAT RATE.
BUT AS WE DO THAT, WE HAVE TO LOOK AT THE STABILITY OF THE REVENUE STREAM AS WELL.
WE WANT TO BALANCE WHERE WE'RE GETTING OUR MONEY BETWEEN THE FIXED CHARGE AND THE VARIABLE CHARGE.
IF PEOPLE DECIDE NOT TO USE ANY WATER, WE STILL HAVE BILLS TO PAY, SO WE STILL HAVE NEED FOR REVENUE IN THAT FIXED CHARGE COMPONENT.
BUT THAT'S WHY THIS CHART LOOKS DIFFERENT ON THE WINTER SIDE VERSUS THE SUMMER SIDE.
IT'S BECAUSE OF HOW WE'VE STRUCTURED THE STABILITY OF THE REVENUE STREAM.
IT IS SOMETHING WE MONITOR, IT IS SOMETHING WE WATCH, BECAUSE WE DO WANT TO BALANCE THE IMPACT ON CUSTOMERS.
WHILE YOU AS THE CITY, WE BALANCE THE FINANCIAL STABILITY OF THE UTILITY, AS WELL.
BUT AGAIN, HERE ON THE WINTER BILL SIDE, 95.88 GOING TO 104, YOUR 104 IS YOUR FUTURE BILL.
WE WILL SEE CHANGES TO THIS CHART HERE IN THE COMING MONTHS.
FINALLY, FOR YOU, I HAVE THE COMMERCIAL COMPARISON.
HERE, YOUR AVERAGE COMMERCIAL CUSTOMER, IF WE LOOK AT THE ENTIRE COMMERCIAL CLASS, DIVIDE BY THE CONNECTIONS, 38,500 GALLONS OF WATER.
THAT BILL RIGHT NOW, WATER WASTE WATER FOR THAT AMOUNT OF USE 413.08 GOING TO 514.64.
THIS IS A MORE SIGNIFICANT INCREASE.
THE REASON FOR THAT IS THAT SECOND RATE DESIGN CHANGE THAT I RECOMMENDED, WHERE WE COME IN AND WE TIE THE COMMERCIAL RATE TO THE SECOND TIER RESIDENTIAL RATE.
AGAIN, COMING IN AND SOLIDIFYING THE PHILOSOPHY OF OUR RATE STRUCTURE, MAINTAINING THE RELATIONSHIP BETWEEN CUSTOMERS GOING FORWARD.
BUT THAT'S WHY YOU SEE THE INCREASE YOU SEE HERE.
>> OF THE TRA CUSTOMERS, ARE ALL OF THEM ON TIERED PRICING?
>> OFF THE TOP OF MY HEAD, THIS IS ALL SUBJECT TO CHECK, I DO NOT BELIEVE GRAPEVINE IS ON TIERED PRICING RIGHT NOW.
[01:10:04]
EVERYBODY ELSE I BELIEVE THEY ARE.>> OF COURSE GRAPEVINE IS IN A CATEGORY OF THEIR OWN.
>> IN THEIR OWN IN A LOT OF INSTANCES.
BUT FROM WHAT YOU UNDERSTAND, ALL OF THE OTHERS ARE ON TIERED STRUCTURE.
>> I BELIEVE SO. I WILL DOUBLE CHECK. I AND LET YOU KNOW THAT.
>> BUT LET'S TALK ABOUT SOME OF THOSE RATE SCHEDULES JUST RIGHT QUICK.
AGAIN, FIXED CHARGE AT THE TOP, VARIABLE CHARGE AT THE BOTTOM.
THIS IS THAT RESIDENTIAL RATE SCHEDULE.
FOUR TIER STRUCTURE, 0-15 IS YOUR FIRST TIER.
AS YOU USE MORE WATER, YOU PAY MORE.
AS I TALKED ABOUT THAT 25% UNIT RATE INCREASE, THAT'S WHAT YOU SEE BETWEEN GOING FROM CURRENT TO 2026.
THOSE UNIT RATES ARE GOING TO GO UP A LITTLE BIT MORE AS YOU GET TO THOSE HIGHER TIERS.
THERE'S THAT FIRST TIER YOU SEE GOING 534-586, THAT TOP TIER, 50,000 GALLONS AND ABOVE, GOING 812-1,145.
YOU ONLY HAVE 0.9% OF THE VOLUMES IN THE CITY THAT FALL AT THAT LEVEL.
BUT IF YOU'RE ONE OF THE ONES THAT USES ABOVE 50,000 GALLONS OF WATER, YOU WILL SEE A FAIRLY SUBSTANTIAL INCREASE AT THAT TIER LEVEL.
THAT'S THE FIRST CHANGE THAT WE'RE RECOMMENDING THERE.
ON THE SENIOR SIDE, AGAIN, HERE, THE 90% IS THAT MINIMUM CHARGE THAT WE'RE TALKING ABOUT, $20.12 THAT'S 90% OF THE 22.36 THAT WE'RE RECOMMENDING ON THE RESIDENTIAL SIDE.
THAT'S WHEN WE'RE TALKING ABOUT THAT 90% OR IT'S A 10% DISCOUNT FOR OUR SENIOR CUSTOMERS.
IT'S THAT $20.12 THAT WE'RE TALKING ABOUT THERE.
ON OUR COMMERCIAL SIDE, AGAIN, WE DO NOT HAVE A TIERED RATE ON THE COMMERCIAL SIDE.
WE DO NOT WANT TO PENALIZE COMMERCIAL CUSTOMERS FOR USING WATER IN PRODUCING ECONOMIC ACTIVITY.
BUT YOU SEE HERE RIGHT NOW, $5.34 IS THEIR VOLUMETRIC RATE.
WE'RE RECOMMENDED TO TAKE THAT TO $7.33, THE VOLUMETRIC RATE HERE, WHICH WOULD THEN TIE BACK TO THE SECOND-TIER RESIDENTIAL RATE.
AGAIN, THEY'RE NOT ON A TIERED RATE, BUT THEY ARE PAYING A HIGHER UNIT PRICE.
WHEREAS DEPENDING UPON HOW YOUR RESIDENTS USE WATER, THEY COULD BE HIGHER, THEY COULD BE LOWER THAN THAT $7.33.
THEN FINALLY, WE HAVE YOUR APARTMENT RATE, SAME THING, SAME STRUCTURE AS COMMERCIAL THERE.
BUT THEN WE HAVE YOUR IRRIGATION RATE.
YOUR IRRIGATION RATE, AGAIN, THIS IS WHERE WE APPLY THAT 25% UNIT RATE DIFFERENTIAL.
WE WANT TO ENCOURAGE CONSERVATION, ESPECIALLY FROM OUR IRRIGATION CUSTOMERS.
ON THE SEWER SIDE, SAME RATE STRUCTURE, JUST GOING UP ON THAT STRUCTURE.
AGAIN, YOU SEE THAT THE VOLUMETRIC INCREASE IS A LITTLE BIT MORE THAN THE MINIMUM BILL INCREASE, REALLY PUTTING THAT TRA COST THERE IN THE VOLUMETRIC CHARGE.
THAT'S THE SEWER RESIDENTIAL SEWER SENIOR, SAME THING, 90% ON THE FIXED CHARGE TO SOLIDIFY THAT 10% DISCOUNT.
THEN WE HAVE YOUR COMMERCIAL STRUCTURE AS WELL.
WHAT QUESTIONS CAN I ANSWER FOR YOU THIS EVENING?
>> YES. COUNCIL MEMBER STEVES.
>> THANK YOU, MAYOR. LAST YEAR, REFRESH MY MEMORY.
WE WENT WITH YOUR RECOMMENDATIONS, IS THAT CORRECT?
>> DID WE CHANGE THEM HALFWAY INTO THE YEAR OR?
>> THERE WAS A ORDINANCE CHANGE.
ULTIMATELY, WHEN WE LOOKED AT HOW THE CONSERVATION RATE ENDED UP BEING APPLIED, THE CONSERVATION RATE ENDED UP BEING APPLIED ACROSS ALL CLASSES.
YOU MADE A CHANGE MID YEAR TO NOT APPLY THE CONSERVATION OR THE TIERED STRUCTURES TO COMMERCIAL.
AGAIN, THE REASON FOR THAT IS WHEN WE LOOK AT THAT COMMERCIAL CLASS, LIKE I SAID, COMMERCIAL CUSTOMERS MAY USE WATER IN PRODUCING ECONOMIC ACTIVITY.
WE DON'T WANT TO PENALIZE A COMMERCIAL BUSINESS FOR USING WATER IF THAT'S PART OF THEIR BUSINESS.
THAT'S WHY I BELIEVE IT WAS ABOUT MID YEAR, YOU CAME IN AND REVERTED COMMERCIAL BACK TO JUST THAT UNIFORM FLAT RATE STRUCTURE.
>> THANK YOU. DOESN'T LOOK LIKE WE HAVE ANY ADDITIONAL QUESTIONS. APPRECIATE IT, THANK YOU SO MUCH
>> THANK YOU FOR YOUR TIME THIS EVENING. APPRECIATE IT.
>> WE'RE THROUGH THE TWO BIGGEST FUNDS.
THAT'S EXCITING. NEXT UP IS THE WATER UTILITY REPAIR FUND.
WE HAVEN'T HAD A SLIDE FOR THIS IN YEARS PAST, BUT WE THOUGHT WE START SHOWING ONE.
THE REASON WE HAVEN'T HAD A SLIDE IS BECAUSE WE NORMALLY DO MID YEAR BUDGET AMENDMENTS, WHENEVER PROJECTS COME UP TO PAY OUT OF THIS FUND.
BUT WE DO HAVE A FUND BALANCE OF $4 MILLION.
WE'RE EXPECTING TRANSFERS IN OF A MILLION TO CONTINUE TO MAKE SURE THAT WE HAVE THOSE RESERVES IN ORDER TO
[01:15:01]
ADDRESS LARGE WATER PROJECTS, WHENEVER WE NEED TO.NEXT STEP IS THE STORMWATER FUND.
WE'RE NOT PROPOSING ANY CHANGES TO IT.
IT ALL COMES FROM THE $5 STORMWATER CHARGE OR A 450 FOR SENIORS.
MOST OF THIS IS GOING TOWARDS CAPITAL PROJECTS.
OUR FUND BALANCE IS PRETTY HEALTHY THERE, ABOUT 3.3 MILLION.
WE'RE JUST CONTINUING TO KEEP OUR MAINTENANCE ONGOING WHILE WE CONSIDER FUTURE PROJECTS.
THESE ARE THE RATES FOR THE STORMWATER.
THAT'S THE END OF THE ENTERPRISE FUNDS.
ANY QUESTIONS ON ANYTHING YOU'VE HEARD SO FAR?
>> ANY QUESTIONS, COUNCIL MEMBERS?
>> I'M TURNING BACK TO KAREN FOR THE SPECIAL REVENUE FUNDS.
>> [LAUGHTER] THIS IS THE 4B FUND, WHICH WE MADE A CHANGE THIS YEAR.
WE'VE HAD SOME CONFLICT SCHEDULING ISSUES WITH THE 4B BOARD OVER THE LAST COUPLE OF YEARS WHERE WE'VE MET WITH COUNCIL AND THEN PRESENTED TO THE 4B BOARD, WHICH WAS A LITTLE BACKWARDS OVER THE LAST TWO YEARS.
WE PRESENTED TO THE 4B BOARD BACK IN JUNE, AND THEY BLESSED THIS BUDGET, WHICH WE ARE PRESENTING TO YOU THIS EVENING.
THERE'S A SLIGHT CHANGE COMPARED TO WHAT WE PRESENTED TO THEM.
REALLY THE MAIN THING IS IS THE PROJECTED BEGINNING FUND BALANCE IS A LITTLE BIT DIFFERENT THAN WHAT WE PRESENTED TO THE 4B BOARD BACK THEN.
ALSO, THE 4B BOARD DID ALSO APPROVE US MAKING A MID YEAR PURCHASE OF A DUMP BED TRUCK.
I HOPE I GOT THAT RIGHT AND AN ASPHALT DRAG BOX.
IT WAS A REQUEST THAT WAS ACTUALLY GOING TO BE IN THE PROPOSED BUDGET, BUT THEY GAVE US THEIR BLESSING TO PURCHASE THAT THIS YEAR.
THE FUNDS LOOKING REALLY HEALTHY.
WE'RE WELL WITHIN, IF YOU'LL NOTICE ON THAT LEFT HAND SIDE ONGOING REVENUES ARE WELL OVER ONGOING EXPENDITURES.
THE ENDING FUND BALANCE BEFORE WE FACTOR IN CAPITAL EXPENDITURES IS A LITTLE OVER EIGHT MILLION.
WHEN WE PULL IN THOSE CAPITAL ITEMS, WHICH ARE OVER ON YOUR LEFT HAND OR RIGHT HAND SIDE OF YOUR SCREEN, THE FUND BALANCE IS A LITTLE OVER FIVE MILLION.
COUNCIL MEMBER STEVES, YOU ASKED ABOUT FUND BALANCE REQUIREMENTS IN THE GENERAL FUND.
THIS FUND ALSO HAS A FUND BALANCE REQUIREMENT, WHICH IS ABOUT ONE TIMES THEIR DEBT SERVICE REQUIREMENT, WHICH IS A LITTLE OVER 600,000.
THIS FUND IS WELL WITHIN THAT REQUIREMENT.
WE HAVE FOUR ONE-TIME ITEMS IN THIS FUND, GREGORY EDITION, WHICH IS 2.8 MILLION, THE SIDEWALK CONDITION SURVEY, WHICH IS ABOUT 60,000.
THE PCI PROJECT, OR PAVEMENT CONDITION INDEX, WHICH IS 55,000 AND A TRAFFIC CAMERA DISPLAY FOR 22,000.
THERE WAS A QUESTION ASKED ABOUT WHEN WAS THE LAST TIME THE CITY DID A SIDEWALK CONDITION SURVEY.
WE'VE NEVER DONE ONE. THIS WILL BE THE FIRST TIME THE CITY HAS DONE ONE OF THOSE.
THEN THE LAST TIME THAT WE DID A PAVEMENT CONDITION INDEX WAS IN 2022.
SO IT'S TIME TO DO THAT AGAIN.
IT'S RECOMMENDED EVERY FIVE YEARS.
WE WILL DO ONE, AND IT WILL HELP DETERMINE OUR CIP STARTING IN 2027.
THIS IS FUNDED THROUGH HOTEL OCCUPANCY TAX.
AGAIN, THIS FUND IS PRIMARILY HOTEL OCCUPANCY TAX.
WE HAVE ONE ONE- TIME EXPENDITURE IN HERE OF $10,000.
WE DID MAKE SOME CHANGES LAST YEAR.
WE MOVED SOME FUNDS INTO THIS.
WE DID THE FOURTH FEST, JUST BECAUSE WE ARE THE ONLY CITY IN THE AREA THAT HAS THE FOURTH FEST ON 4 JULY.
WE ARE DRAWING PEOPLE TO OUR COMMUNITY, SO IT QUALIFIES AS AN EXPENSE THAT WE'RE BRINGING PEOPLE IN.
ONE OF THE THINGS THAT'S IN HERE IS A ROY SAVAGE COMMUNITY MURAL.
THAT IS THE ONE TIME EXPENSE, BY THE WAY.
WE HAVE A CONCEPT DRAWING TO GIVE YOU AN IDEA OF WHAT THAT MIGHT LOOK LIKE.
THAT'S GOING TO GO ON THE INSIDE OF ROY SAVAGE.
THIS IDEA STARTED IN EARLY 2024, LATE 2023 WITH OUR PRIOR CULTURAL ARTS SUPERVISOR MANAGER.
I CAN'T REMEMBER WHAT HER TITLE WAS.
SHE SELECTED THIS ARTIST, MOLLY KEEN.
SHE HAS A HISTORY OF DOING COMMUNITY MURALS.
THE IDEA IS, SHE HAS CREATED THIS DESIGN.
SHE'LL PREP THE PROPERTY, PROVIDE THE PAINT, AND THE COMMUNITY WILL HELP HER PAINT IT.
THEN WHEN IT'S ALL SAID AND DONE, SHE WILL FINISH THE DESIGN, CLEAN UP THE EDGES, SEAL IT, AND THAT WILL BE INSIDE ROY SAVAGE POOL.
[01:20:01]
THAT'S THE COMMUNITY MURAL THAT WILL BE INSIDE THAT.THAT'S THE $10,000 THAT'S IN HER BUDGET, THE ONE TIME EXPENSE.
>> YES. THERE IS SOMETHING ELSE THAT'S IN THERE.
IT'S $10,000 AS WELL, AND IT SAYS PARK SCULPTURE.
WE DO HAVE A WEBSITE, IF YOU WANT ME TO BRING THAT UP TO GIVE YOU AN IDEA OF WHAT THAT MIGHT LOOK LIKE.
WE HAVE AN ARTIST CHOSEN. LET'S SEE.
HE HAS A LONG HISTORY OF WORKING WITH COMMUNITIES.
THE PARK HAS NOT BEEN CHOSEN NOR HAS THE SCULPTURE ITSELF.
DANIELLE MET THIS ARTIST AT A FORT WORTH COMMUNITY ART OR A FORT WORTH ART SHOW, REALLY ENJOYED VISITING WITH HIM, REALLY HAD A CONNECTION WITH HIM.
WE PUT THAT IN THE BUDGET, BUT AGAIN, THE PARK HAS NOT BEEN CHOSEN, NOR HAS THIS SCULPTURE.
I'D BE HAPPY TO BRING UP THAT WEBSITE IF YOU WANT TO SEE WHAT SCULPTURES HE PROVIDES.
>> THIS WOULD BE AN ADDITIONAL ONE TIME COST.
>> WE KEPT THAT IN HER BUDGET AS A ROTATING THING.
WE MAY NOT SPEND THE FULL $10,000 ON THE SCULPTURE.
HE'S GOT A VARIETY OF THINGS THAT HE OFFERS THAT HE DOES, DIFFERENT PLACES.
DIFFERENT THINGS WILL WORK, DIFFERENT PARKS, JUST DEPENDS ON THE PARK THAT IS CHOSEN.
I THINK WE'LL HAVE A REALLY GOOD OPPORTUNITY TO COME TO COUNCIL WITH SOME IDEAS, AND THE PERFECT LOCATION WILL BE WORK WITH COUNCIL TO FIGURE OUT WHERE THAT WILL GO.
I THINK WE HAVE A REALLY GOOD OPPORTUNITY HERE.
BUT AGAIN, SCULPTURE IS NOT CHOSEN AND PARK IS NOT CHOSEN.
>> VERY GOOD. MOVING FORWARD WITH THIS FOR THIS LINE ITEM WITH SCULPTURES.
THIS WILL BE GOING TO, WE'LL BE ABLE TO TAKE A LOOK AT WHERE IS THE BEST LOCATION FOR THE PARK AND GO THROUGH SOME SCULPTURES.
>> CAPTURE ALL THAT INFORMATION.
>> I JUST WANTED TO GIVE YOU AN EXAMPLE SINCE THAT WAS IN HER BUDGET AS A LINE ITEM.
THOUGHT IT WAS MILLIONS OF DOLLARS.
>> [LAUGHTER] YOU'RE LIKE, WHOA.
>> COUNCILMAN GAGLIARDI, WE SPARE NO EXPENSE IN THE CITY.
>> NOW, I WILL SAY DANIELLE, DID HAVE A ROTATING SCULPTURE WALK IN THIS BUDGET AS WELL, BUT WE DID PULL IT AFTER WE DID OUR PRESENTATION TO YOU A COUPLE OF WEEKS AGO ABOUT THE IDEA OF WHAT WE WANT TO DO AT OBS.
SHE HAS THIS BEAUTIFUL IDEA OF DOING A ROTATING SCULPTURE AT THE BACK OF OBS AROUND THAT U SHAPED.
BUT WE WANT TO WAIT UNTIL WE'RE DONE DOING RENOVATIONS AND THINGS LIKE THAT BEFORE WE DO THAT.
WE PULLED THAT FROM THE BUDGET AND IN PROBABLY A YEAR OR SO WHEN WE PUT THAT BUDGET BACK TOGETHER, YOU'LL SEE THAT COME FORWARD. WE PULLED THAT FOR YOU.
>> THESE ARE OUR MINOR FUNDS, THE PEG FUND, THAT CAN ONLY BE USED ON CERTAIN THINGS THAT MOLLY AND HER TEAM CAN USE FOR ONLY CERTAIN THINGS, VERY RESTRICTED.
THE ECONOMIC DEVELOPMENT FUND, THAT IS PRIMARILY FUNDED THROUGH A TRANSFER FROM THE GENERAL FUND.
AGAIN, IT'S PRIMARILY USED FOR DEVELOPMENT ACTIVITY, THINGS LIKE THAT.
COURT FUNDS IS DIFFERENT THIS YEAR.
MID YEAR WAS EFFECTIVE IN MAY WHERE WE COMBINED THE COURT TECHNOLOGY AND THE COURT SECURITY FUND IN ONE.
AGAIN, VERY RESTRICTED ON WHAT THOSE FUNDS CAN BE USED FOR.
PUBLIC SAFETY FUNDS, SAME THING.
BEAUTIFICATION FUND IS FUNDED BY A DONATION FROM REPUBLIC, AND THAT'S WHAT OUR BEAUTIFICATION BOARD USES FOR THEIR COMMUNITY PROJECTS AND THINGS LIKE THAT.
THE TREE PRESERVATION FUND IS A FAIRLY NEW FUND, BEEN AROUND FOR ABOUT A YEAR OR SO.
RIGHT NOW THERE'S NO EXPENSES IN THERE.
IT'S JUST REVENUE BUDGETED, AND IT'S BASED ON WHEN DEVELOPMENT PROJECTS AND THINGS LIKE THAT.
THEN THE TIF FUND, OBVIOUSLY, IS A PORTION OF THAT PROPERTY TAX FOR THE TARIFFS AND WHEN STUFF LIKE THAT COMES IN.
>> WHEN WE'RE LOOKING AT THE TREE PRESERVATION FUNDS, SO WE'RE BUDGETING OUT OF THAT.
WE REALLY DON'T KNOW WHAT THAT'S GOING TO BE, WE'RE JUST GUESSING.
>> WE'RE JUST BUDGETING REVENUE.
JUST NO EXPENDITURES, JUST REVENUE.
ANY QUESTIONS ON OUR MINOR FUNDS? THESE ARE NEW THIS YEAR.
ONE OF THE THINGS AS WE'VE BEEN TALKING ABOUT OUR FUND STRUCTURE OVER THE YEARS IS WE'VE BEEN TALKING ABOUT REDUCING, CONSOLIDATING, BEEN WORKING WITH OUR AUDITORS, THINGS LIKE THAT.
AS PART OF THAT CONVERSATION, WE'VE BEEN LOOKING AT OUR FUND STRUCTURE.
WE CREATED AS PART OF THE BUDGET PROCESS,
[01:25:01]
AND ALSO MOVING INTO OUR NEW FINANCIAL SOFTWARE IS INTERNAL SERVICE FUNDS.BASICALLY, AN INTERNAL SERVICE FUNDS ARE, I'LL USE FACILITY MAINTENANCE AS AN EXAMPLE.
CURRENTLY OR PREVIOUSLY, WE HAD A FACILITY MAINTENANCE FUND THAT ROLLED INTO THE GENERAL FUND AS PART OF OUR ANNUAL FINANCIAL REPORT.
WELL, THE FACILITY MAINTENANCE FUND ALSO DOES WORK ON THE PUBLIC WORKS BUILDING.
WELL, THE PUBLIC WORKS BUILDING HOUSES UTILITY EMPLOYEES.
REALLY, IT'S AN INTERNAL SERVICE FUND BECAUSE IT PROVIDES SERVICES TO INTERNAL DEPARTMENTS.
IT'S AN INTERNAL SERVICE FUND.
SAME THING WITH OUR EQUIPMENT REPLACEMENT FUND.
IT WORKS FOR ALL CITY DEPARTMENTS, SAME WITH THE COMPUTER REPLACEMENT FUND.
WE LOOKED AT ALL OF OUR FUNDS, THE LIBRARY MAINTENANCE FUNDS.
WE CONSOLIDATED THAT INTO ONE FUND, INTERNAL SERVICE TO MAKE OUR FUND STRUCTURE A LITTLE BIT MORE GASBY RECOMMENDATIONS AND YOU'LL SEE THAT NOW AS A SEPARATE COLUMN IN OUR ANNUAL FINANCIAL REPORT, NOT FOR 24, 25, BUT 25, 26.
THAT'S WHY THESE ARE NEW AND DIFFERENT.
SHE JUST GOT STARING AT ME AND SMILING.
>> I THINK YOU'RE EXCITED BECAUSE YOU GET TO GET RID OF SOME FUNDS.
>> I DO. ACTUALLY. IT'S VERY EXCITING.
>> COMBINE THEM INTO ONE, IT'S GOOD.
>> I JUST WANT TO MAKE SURE THAT WE'RE NOT TAKING ANY FUNDS AWAY FROM THE LIBRARY.
>> NO, MA'AM. CORRECT. YES, SO WHAT YOU'LL SEE ON THE ANNUAL FINANCIAL REPORT, ALL OF THESE FUNDS WHERE WE CONSOLIDATED AQUATICS OR THE LIBRARY.
AT THE VERY VERY BOTTOM, YOU'LL SEE COMMITTED FUNDS FOR THE LIBRARY OR COMMITTED FOR AQUATICS OR SOMETHING LIKE THAT.
THOSE FUNDS ARE NOT BEING TAKEN AWAY FROM THE LIBRARY.
>> YOU'RE WELCOME. THIS IS MORE OF JUST A SUMMARY OF WHAT ALL WE DID SO THAT WE HAVE A CLEAR PICTURE OF WHAT WE CONSOLIDATED, WHY WE CONSOLIDATED THINGS LIKE THAT.
ANY QUESTIONS? I CAN NERD OUT ON GASBY 54, AMY, IF YOU NEED ME TO.
WE HAVE SOME CAPITAL PROJECTS THIS YEAR THAT WE'RE FUNDING.
ACTUALLY, LET ME GRAB A PIECE OF PAPER REAL QUICK SO I CAN BE.
WE HAVE FOUR PUBLIC WORKS PROJECTS THAT WE'RE FUNDING THIS YEAR.
BROWN TRAIL, WE'VE BEEN TALKING ABOUT THAT FOR A LITTLE BIT.
THAT WAS PART OF OUR BOND PROJECT THAT WE SUBMITTED TO TARRANT COUNTY IN 2021.
THIS IS JUST PUTTING IT ON OUR CIP. IT'S THERE.
WE SEE IT AND WE ISSUED BONDS FOR THIS PROJECT BACK IN 2024.
THAT IS ALSO PART OF THAT 4B PROJECT.
WE'VE HAD THAT ON OUR 4B BUDGET FOR A COUPLE OF YEARS IN DESIGN.
WE'RE FINALLY GETTING READY TO BID THAT PROJECT.
IT WAS IN THE 24, 25 4B BUDGET, BUT SINCE WE WEREN'T BIDDING IT YET, WE'VE ROLLED IT INTO 25, 26, BUT WE ALSO WANTED IT ON OUR CIP LIST FOR THIS YEAR.
WATERLINE REPLACEMENT, AND THEN A DRAINAGE IMPROVEMENT PROJECT.
THEN WE HAVE SOME PARKS AND FACILITY PROJECTS.
WE'RE GOING TO DO SOME ROOF GUTTERS AND DOWNSPOUTS AT THE PARK PAVILION GENERATIONS PARK, AND I'M GOING TO TRY NOT TO RUIN THE PRONOUNCEMENT OF THE REST OF THESE PIECES OF EQUIPMENT.
WE HAVE A BUNKER AND FIELD RAKE, A SCAG TIGER CAT TURN MOWER, A SCAG TURF STORM SPREADER SPRAYER.
DURING OUR ARPA CONVERSATION, WE REPLACED HALF OF THE LIBRARY HVAC UNITS.
WELL, WE WANTED TO GET START REPLACING THE OTHER EIGHT IN A ROTATING BASIS.
THIS IS REPLACING TWO OF THE REMAINING EIGHT SO THAT WE'LL SLOWLY START REPLACING THE REMAINING SIX ON A SCHEDULE.
THEN THE AC UNIT ON THE NEW RENAMED CITY HALL NEEDS TO BE REPLACED, AND WE'RE GOING TO BE USING ARPA INTEREST, WHICH I BELIEVE IS SITTING AT ABOUT 700 AND SOMETHING THOUSAND.
ANY QUESTIONS ON OUR CIP PLAN FOR THE YEAR?
[01:30:04]
>> YOU ARE DOING A FACILITIES EVALUATION.
IS THAT COMPLETE AND IS THAT WHERE YOU'RE GETTING SOME OF THIS?
>> YES, AND NO. ONE OF THE THINGS WE'RE WORKING ON, AND WE'RE STILL GETTING THERE.
I ACTUALLY JUST HAD A CONVERSATION WITH MARK EARLIER TODAY IS WE HAVE BEEN VERY REACTIONARY IN NATURE.
WE JUST HAVE AND WE WANT TO BE VERY PROACTIVE.
WHAT HIS TEAM IS DOING IS REALLY WORKING ON WHAT ARE THE FACILITY PROJECTS THAT HAVE BEEN GIVING US THE MOST GRIEF, WHICH WE HAVE TACKLED A LOT OF THOSE WITH OUR ARPA FUNDS, BUT WE WANT TO PLAN MOVING FORWARD.
WHAT ARE WE DOING WORK ORDERS ON REPEATEDLY? WHAT HAVE WE BEEN BAND ADING THAT WE'VE JUST BEEN BAND AIDING FOR A LONG TIME SO THAT WE CAN REALLY TRULY START BUILDING A FACILITY CIP. WE'RE GETTING THERE.
IT'S JUST TAKING US A LITTLE BIT MORE TIME.
RECENTLY YOU APPROVED THAT NEW WORK ORDER SYSTEM FOR US, AND I THINK THAT'S GOING TO HELP US BUILD THAT BECAUSE WE DON'T REALLY HAVE A GOOD SYSTEM IN PLACE PRIOR TO THAT.
I THINK WE'RE GOING TO GET THERE.
IT'S JUST GOING TO TAKE US A LITTLE TIME.
>> IT WON'T BE AN ACTUAL REPORT SAYING, WE'RE GOING TO DO THIS IN FIVE YEARS, THIS SIX YEARS, BUT IT'S JUST GOING TO BE AN EVALUATION OF THE AIR CONDITIONERS ARE SHOT AT THE ANNEX.
WE GOT TO DO THAT BECAUSE IT'S REALLY HIGH ON THE LIST OF PROBLEMS.
>> I WOULD LOVE TO PRODUCE A REPORT.
I JUST DON'T KNOW WHAT THAT LOOKS LIKE.
IT MAY JUST BE A LIST OF THIS AC UNIT HAS BEEN GIVING US TROUBLE.
WE NEED TO REPLACE IT, OR IT COULD BE A REPORT.
I DON'T KNOW WHAT THAT LOOKS LIKE JUST YET.
>> WE DID HAVE SOME ITEMS THAT WERE REQUESTED THAT WE WERE UNABLE TO FUND THIS YEAR.
LEVI, OUR IT DIRECTOR, GAVE US TWO OPTIONS FOR THE MANAGED SECURITY THAT WAS ABLE TO MONITOR OUR FIREWALL.
HE KNEW OUR BUDGET WAS GOING TO BE TIGHT, SO HE GAVE US THIS OPTION OR A LESSER EXPENSIVE OPTION.
THIS ONE'S A LITTLE BIT NICER AND BETTER OPTION, BUT HE KNEW IT WAS GOING TO BE TIGHT, SO HE GAVE US THE LESSER OPTION IN THE EVENT.
WE COULDN'T FUND THIS ONE, SO THAT'S WHY THIS ONE'S ON THIS LIST.
WE JUST COULDN'T DO THIS ONE, SO WE FUNDED THE OTHER ONE.
OUR PURCHASING MANAGER WOULD ABSOLUTELY LOVE THIS PURCHASING SOFTWARE, BUT I TOLD HER IT JUST WASN'T GOING TO HAPPEN.
WE HAVE OTHER MECHANISMS IN PLACE.
I WILL TELL YOU, ANDREA HAS A GOAL.
I DON'T KNOW IF YOU SAW IT ON THE CITY MANAGER'S PAGE IN THE BUDGET OF HER GOALS FOR THIS UPCOMING YEAR.
BUT SHE HAS CHALLENGED US TO DO THE TEXAS TRANSPARENCY STARS, WHICH THERE ARE VARIOUS DIFFERENT LEVELS, AND ONE OF THEM IS A PROCUREMENT STAR, WHICH THERE ARE CERTAIN REQUIREMENTS THAT WE HAVE TO MEET ON OUR WEBSITE TO MEET THAT.
IT WAS FUNNY WHEN I MENTIONED IT TO ANGIE, SHE SENT ME A LINK TO THIS, AND SHE WAS, "THIS WOULD REALLY HELP ACHIEVE THAT." I'M LIKE, "SORRY, BUT I THINK WE'LL BE OKAY WITHOUT IT." SOMETIMES WE JUST CAN'T AFFORD IT RIGHT NOW.
IT MAY BE SOMETHING WE LOOK AT NEXT YEAR DEPENDING UPON WHAT THE BUDGET LOOKS LIKE.
THE FIRE OPERATIONS WEARING LINE APPAREL HONESTLY IT WAS ONE OF THOSE THINGS AS I LOOKED AT HISTORICAL SPEND.
I DIDN'T THINK WE COULD AFFORD THE 25 GRAND, AND BASED ON HISTORICAL SPEND, I JUST COULDN'T JUSTIFY IT.
THE SAME THING WITH THE KEY MANAGEMENT SYSTEM, I FELT LIKE IT WAS A LITTLE BIT TOO EXPENSIVE, AND THEY'RE GOING TO LOOK AT SOME OTHER OPTIONS.
THE FORKLIFT IS ONE OF THOSE ONES THAT WE PROBABLY COULD FUND OUT OF THE VEHICLE REPLACEMENT.
BUT I FELT LIKE IT WAS ONE OF THOSE ONES WE COULD ALSO JUST SET ASIDE AND MAYBE LOOK AT AGAIN NEXT YEAR.
THE BOTTOM ONE WAS HONESTLY JUST STICKER SHOCK FOR ME.
I FELT LIKE IT WAS ONE OF THOSE ONES THAT WE JUST DON'T TAKE OUT ENOUGH, AND THAT'S A REALLY BIG TICKET ITEM.
I WANTED TO PAUSE ON THAT FIRST MAGE.
>> THANK YOU. THESE ARE JUST SOME ITEMS THAT WE JUST EVALUATED, AND WE DON'T NEED THEM NECESSARILY RIGHT NOW. IT'S A FUTURE NEED.
FOR EXAMPLE, THE TEXPRESS COURIER SERVICE FOR THE LIBRARY.
WE DON'T KNOW WHAT THE STATE'S GOING TO DO WITH A PARTICULAR GRANT.
MARIA, I'M PROBABLY GOING TO GET IT WRONG.
BUT IF THIS GOES AWAY, THEN WE MAY BE COMING FORWARD WITH THIS SERVICE.
BUT IF THE GRANT STAYS IN PLACE, THEN WE DON'T NEED THIS.
THAT'S WHY WE DIDN'T FUND IT BECAUSE WE MAY NOT NEED IT.
ALL IS JUST GOING TO DEPEND ON WHAT THIS PARTICULAR STATE AGENCY DOES TO US.
THE ROTATING SCULPTURE WALK WE ALREADY TALKED ABOUT.
THERE'S JUST SOME THINGS THAT ARE STILL IN PLAY.
I DID TALK TO CHIEF ABOUT THE AMBULANCE, AND I TOLD HIM, WE'RE GOING TO REMOUNT ONE THIS YEAR.
[01:35:01]
WE MAY LOOK AT REPLACING THAT ONE NEXT YEAR.WE JUST COULDN'T AFFORD TO DO THAT THIS YEAR.
WE COULDN'T AFFORD TO DO BOTH. ANY QUESTIONS? MY LAST SLIDE OF THE EVENING IS JUST TO TALK ABOUT WHAT WE DO NEXT.
WHAT WE DO NEXT IS, WE'LL DO THE CERTIFIED ROLL.
WE'LL ACCEPT THE CERTIFIED COLLECTION RATE, WE'LL DO THE RECORD VOTE AND WE'LL SET THE PUBLIC HEARINGS.
THEN AFTER THAT ON SEPTEMBER 9, WE'LL HOLD PUBLIC HEARINGS, AND WE WILL APPROVE THE BUDGET ORDINANCE AND THE TAX RATE.
>> VERY GOOD. THAT'S EVERYTHING.
FIRST OF ALL, I KNOW THAT WAS A LOT.
YOU'VE HAD YOU IN FINANCE, AND A LOT OF PEOPLE IN HERE, CRUNCHING NUMBERS ALL WEEK HAVE HAD A ROUGH WEEK GOING THROUGH ALL THIS, MEETING OUR REQUESTS.
I JUST WANT TO SAY ON BEHALF OF US AND THE RESIDENTS, THANK YOU ALL FOR YOUR HARD WORK AND GETTING US THE INFORMATION TIMELY AND DOING EVERYTHING YOU CAN IN THIS BUDGET TO ACCOMMODATE.
WE KNEW IT WAS GOING TO BE TOUGH GOING IN HERE.
WE KNEW IT WAS GOING TO BE TOUGH.
I WOULD LIKE TO MENTION THAT THERE ARE A FEW PEOPLE ON TAD, OUR OWN RESIDENT, AND TRUSTEE, MR. FRED CAMPOS BEING ONE WHO IS AGAINST THIS FREEZE THAT HE IS FIGHTING TIRELESSLY AGAINST.
IT'S UNFORTUNATE THAT THIS IS THE PENALTIES THAT WE HAVE THAT IS FORCING US TO RAISE TAXES, WHERE OTHER YEARS PRIOR, WE HAVE BEEN STEADY IN OUR TAX RATE AND FOR THE FIRST TIME IN A COUPLE OF YEARS, WE ACTUALLY HIT IT WHERE WE HELD THE TAX RATE STAY FOR THREE YEARS IN A ROW.
IT'S UNFORTUNATE TIMES BUT I KNOW YOU GUYS HAVE MET THE CHALLENGE.
WE HAVE THE TEAM TO MEET THAT CHALLENGE, AND I JUST WANT TO SAY HOW GRATEFUL I AM TO YOU GUYS FOR DOING THAT.
>> COUNSEL, WITH THAT, WE HAVE A HUGE BUDGET IN FRONT OF US.
I DO HAVE QUESTIONS AND I WOULD LIKE TO GO OVER.
JUST A FEW THINGS REGARDING SOME OF THE FUNDS, SOME OF THE SPENDING.
LET'S SEE. WHERE DO I START? LET'S START FOR THE FUND.
>> DO YOU WANT TO GO SLIDES OR BUDGET BOOK?
>> I'M GOING WITH BUDGET BOOK. FUND SUMMARIES FOR THE GENERAL FUND.
LOOKING AT THE GENERAL FUND, I'M LOOKING AT OUR ENDING FUND BALANCES.
IN 2023, WE HAD ENDING FUND BALANCE IN THE GENERAL FUND OF ABOUT 11,000,720.
PROJECTED FOR THIS YEAR WE'RE AT 19,000,091.
CAN WE EXPLAIN WHY THAT IS INCREASED?
>> YES. THAT IS ALL DUE TO THE PROPERTY SALE AT CAMPUS WEST.
>> WELL, ANY OF THAT AND ANY SAVINGS THAT WE'VE HAD OR ANY ADDITIONAL REVENUE OR ANY SAVINGS IN STAFF EXPENDING AND THINGS LIKE THAT.
IT COULD BE A COMPILATION OF A LOT OF THINGS.
BUT WE DID HAVE THAT PROPERTY SALE THAT DID HIT THIS SUMMER.
>> JUST THAT ONE. THAT WASN'T THE RESIDENTIAL PORTION, EITHER, CORRECT?
>> BOTH HAVE SOLD. HOW THAT SIX, ABOUT FOUR MILLION OF THAT IS CONTRIBUTING TO THAT.
WILL WE SEE THIS TYPE OF INCREASE NEXT YEAR?
>> WHAT'S GOING TO BE DIFFERENT NEXT YEAR? OBVIOUSLY WE WON'T HAVE THE REVENUE FROM THAT.
WE'RE GOING TO BE DOING SOMETHING WITH THAT REVENUE WHICH THAT'S JUST GOING TO BE SITTING IN THE FUND, CORRECT?
TO COUNCIL MEMBER STEVE'S POINT, OUR BUDGET IS ABOUT FLAT.
YOU'RE GOING TO SEE REVENUES AND EXPENDITURES, AND THAT'S GOING TO BE ABOUT ZERO.
YOU'RE NOT GOING TO SEE ANY ADDITIONAL FUNDS GOING INTO FUND BALANCE.
YOU'RE NOT GOING TO SEE THAT FUND BALANCE GROW.
IN FACT, WE'RE DIPPING INTO FUND BALANCE TO UTILIZE SOME OF THAT ONE TIME MONIES.
IN FACT, YOU'RE PROBABLY GOING TO SEE IT GO DOWN, AND IN FACT, YOU DO SEE IT DROP A LITTLE BIT.
IF YOU SEE YOUR FUND BALANCE PROJECTED FROM 25-26, IT GOES FROM 19-18.
BECAUSE WE'RE USING ABOUT ABOUT 830,000 FOR ONE TIME EXPENDITURES.
>> OTHER THAN THE LAND SALE, WE HAVE INTEREST, IT'S PRETTY MUCH CONTRIBUTING TO INTEREST AND EVERYTHING ELSE.
>> WITH THAT, LET ME LOOK AT OUR PERSONNEL CHANGES.
PERSONNEL CHANGES, WE HAVE A FEW OF THOSE.
MY NEED TO HELP ME WITH SOME OF THIS.
WE'RE RECLASSIFYING HUMAN RESOURCE ANALYST TO HUMAN RESOURCE MANAGER. YOU'VE REASON FOR THAT?
>> THAT WAS A MID-YEAR CHANGE.
IT WAS A PROMOTION AND SO WE JUST WERE CLEANING UP THE PERSONNEL SUMMARY IN THE BUDGET.
[01:40:05]
>> RECLASSIFIED ACCOUNTING MANAGER TO CONTROLLER.
>> THAT IS ACTUALLY ONE OF THE ITEMS THAT IS IN AS A SUPPLEMENTAL INCREASE, AND THAT'S PRETTY MUCH INDUSTRY STANDARD.
WE ARE PROBABLY ONE OF THE ONLY CITIES THAT DOESN'T HAVE A CONTROLLER, AND SO THAT'S ONE OF THE ITEMS THAT'S BEFORE YOU TO APPROVE.
HOW ABOUT POLICE? WERE CLASSIFIED TWO PART-TIME SCHOOL OFFICERS?
>> THAT IS ACTUALLY AN ERROR ON MY PART.
I HAD MOVED TWO POLICE OFFICER FTES DOWN TO THE SROS.
I GUESS IT'S NOT AN ERROR NECESSARILY BECAUSE WE DID HAVE SOME POLICE OR SOME SROS AT THE ELEMENTARY SCHOOLS, BUT WE DIDN'T NECESSARILY HAVE SRO POSITIONS, SO THEY WERE JUST OCCUPYING POLICE OFFICER FTES, SO I WAS JUST FIXING THE PERSONNEL SUMMARY.
>> NO. I WAS JUST CORRECTING MY ERROR.
AS THE POLICE CHIEF POINTED OUT, I WAS LIKE, WAIT A MINUTE.
I HAVE MORE POLICE OFFICERS THAN WHAT YOU HAVE LISTED.
I FIXED IT FOR YOU, POLICE CHIEF.
>> GOOD. WHAT I HAVE OF POLICE OFFICERS, WE HAVE FTES OF 80.96.
>> THAT IS NOT CHANGING. NO. I JUST FIXED MY ERROR FOR HIM SO HE WOULD BE HAPPY..
>> VERY GOOD. THAT'S WHAT I HAD WITH PERSON.
ANYBODY HAVE QUESTIONS OVER PERSONNEL CHANGES? LET'S GO TO SOME DEPARTMENTS HERE.
I NOTICED IN CITY MANAGER'S BUDGET, THAT'S A SIGNIFICANT INCREASE OF 431,000. WHAT'S THAT DUE TO?
>> KAREN, YOU WANT ME TO START?
>> THE MAJORITY OF THAT IS DUE TO THE FACT THAT WE INCORPORATED THE ECONOMIC DEVELOPMENT POSITION WITHIN THE CITY MANAGER'S OFFICE.
THAT'S BEEN PULLED IN, AS WELL AS ALL THE TRAINING, ETC., MEMBERSHIPS AND THINGS LIKE THAT.
THAT WAS A LARGE PIECE OF THAT.
>> I SAW SOME CONTRACT SERVICES, MOWING AND LANDSCAPING.
THAT'S THE ECONOMIC DEVELOPMENT FUND IS NOW UNDER THE CITY MANAGER'S BUDGET.
>> GOT YOU. THAT'S WHY WE'RE SEEING THAT.
THEN WOODLAND PARTNERS DEMOLITION.
>> THAT'S ALSO ECONOMIC DEVELOPMENT FUND.
THAT'S THE DEMOLITION FOR THE TWO STORY.
[OVERLAPPING] I WANTED TO DOUBLE CHECK THAT.
THANK YOU FOR CLARIFYING THAT ONE.
>> YOU GOT A DECREASE OF 1.1 MILLION.
>> LAST YEAR, WE HAD THAT ONE TIME TRANSFER FROM FOR NON-DEPARTMENTAL INTO THE VEHICLE REPLACEMENT FUND OF 1.5 MILLION.
IT ALWAYS THROWS OFF BECAUSE BRADY'S BUDGET HAS THE NON-DEPARTMENTAL, SO IT LOOKS LIKE HE'S EITHER INCREASING OR DECREASING.
>> ALWAYS HUGE SWINGS EVERY YEAR.
ANYBODY WHO'S LOOKING AT IT. I WANT TO MAKE SURE WE HAVE.
>> IT'S BECAUSE IT'S THE NON-DEPARTMENTAL..
>> LET'S LOOK AT THE FIRE DEPARTMENT HERE.
I'M LOOKING AT OUR FIRE DEPARTMENT, AND WE'RE LOOKING AT SOME OF THIS.
I'M NOTICING THE DISTURBING TREND.
OUR OVERTIME SEEMS TO BE INCREASING EXPONENTIALLY.
DO WE HAVE FULL TIME? DO YOU HAVE ANY VACANCIES IN THE FIRE DEPARTMENT RIGHT NOW?
>> THAT IS ONE OF THE THINGS THAT CHIEF AND I HAVE BEEN WORKING ON.
ARE YOU LOOKING AT ACTUALS OR BUDGET OR BOTH?
>> IF YOU'RE LOOKING AT THE BUDGET FOR PREVIOUS YEARS, YOU GO FROM 700,000 ROUGHLY 2023.
>> I WILL TELL YOU IN THE PAST, OVERTIME IN THE FIRE DEPARTMENT WAS NOT BUDGETED APPROPRIATELY.
>> WHEN YOU SAY PAST, HOW FAR BACK?
>> BEFORE I GOT HERE, SO OVER THE LAST THREE YEARS.
WE HAVE BEEN SLOWLY BUILDING THAT OVERTIME BUDGET TO GET WHERE IT NEEDS TO BE.
THE WAY THEIR TIME IS, THEY HAVE OVERTIME ALREADY BUILT INTO THEIR SCHEDULE PRIOR THAT WAS NOT CALCULATED CORRECTLY INTO THEIR OVERTIME BUDGET.
THAT WAS THE FIRST CHANGE WE MADE.
THEN WE STARTED LOOKING AT THEIR TRUE OVERTIME COST.
[01:45:01]
SO THEN WE MADE ANOTHER CHANGE.WE'VE BEEN SLOWLY GETTING THAT TO WHERE IT NEEDS TO BE.
NOW, WHAT HAPPENED THIS YEAR, AND THE FIRE CHIEF MAY HAVE TO CORRECT ME IF I'M WRONG.
WHAT HAPPENED THIS YEAR, THOUGH, IS WHEN THEY HAVE PEOPLE OUT OR THEY HAVE TO MAINTAIN MINIMUM STAFFING.
WELL, WHEN TOWARD TO DO THAT, YOU'VE GOT TO HAVE PEOPLE THAT MAY HAVE TO STAY OVER AFTER THEIR SHIFT, WHICH CAUSES OVERTIME.
IF YOU'VE GOT PEOPLE OUT ON LEAVE OR OUT ON VACATION OR OUT ON SICK LEAVE, THAT CREATES AN OVERTIME SITUATION.
UNFORTUNATELY, THIS YEAR WAS AN ANOMALY.
[LAUGHTER] [BACKGROUND] DO YOU WANT TO COME TALK? HE CAN MAYBE ELABORATE A LITTLE BIT MORE ON WHAT THAT SITUATION LOOKED LIKE.
>> GOOD EVENING. THE START OF THE YEAR WE HAD SIX VACANCIES FOR AMOUNT OF TIME THAT TOOK TO GO THROUGH WHOLE RECRUITMENT.
SO WE HAD MORE VACANCIES THAN WE NORMALLY HAVE.
SINCE THEN, WE FILLED UP, RIGHT NOW, I THINK WE HAD A FULLER ONE VACANCY.
MAYBE POTENTIALLY ONE, AND WE'VE FILLED A LITTLE QUICKER, AND THAT WAS A CHALLENGE WE HAD A LITTLE BIT.
I'M NOT SURE IF YOU'RE SEEING THE TOTAL NUMBER, THAT MAY INCLUDE DEPLOYMENTS, BUT IT'S INCLUDING DEPLOYMENTS, THOSE ARE ALL FULLY REIMBURSED THROUGH THE STATE OR WHO ARE THE RESPONSIBLE PARTY, SOMETIMES IT'S FEDERAL, SOMETIMES THE STATE.
>> YOU'RE TALKING ABOUT THE SWIFT DEPLOYMENTS.
>> WE SEND PEOPLE OUT ON DEPLOYMENTS.
WE'VE EXPANDED THE CAPABILITY OF OUR TEAM.
WE'VE GOT A FEW EXTRA PEOPLE THAT ARE ON THE TASK FORCE TEAMS. WE'VE GOT FIVE PEOPLE OUT RIGHT NOW WENT BACK THEY CAME BACK FROM KERRVILLE.
THEY'RE BACK DOWN THERE AGAIN, AND PROBABLY GOING TO BE ABOUT ABOUT A 15-DAY DEPLOYMENT, SOME 14-DAY EMPLOYMENT.
>> WHEN THEY'RE OUT, DOES THAT CAUSE A BURDEN TO YOUR DEPARTMENT IN FILLING THOSE POSITIONS, LEADING TO MORE OVERTIME?
>> WE'RE REIMBURSED FOR THE OVERTIME.
THE COST PERSPECTIVE. [OVERLAPPING]
>> THEY'RE REIMBURSED, AND THEN WE ARE ALSO REIMBURSED.
>> WE ARE REIMBURSED AT THE COST TO THE CITY.
IF SOMEONE IS DOWN THERE ON STRAIGHT TIME, WE'RE REIMBURSED FOR THE STRAIGHT TIME.
IF IT CAUSES OVERTIME, WE REIMBURSED AT THE OVERTIME RATE.
THE IMPACT IS SOMETIMES PEOPLE ARE WORKING MORE OVERTIME HERE, BUT WE ARE REIMBURSED FOR THE OVERTIME COSTS.
IT'S NOT LIKE WE PAY THEM STRAIGHT TIME, AND WE SUFFER THE OVERTIME.
THEY PAY FOR WHAT THE ACTUAL COST OF THE PERSONNEL DOWN THERE IS.
VACANCIES GET US AND INJURIES GET US.
AT THE END OF THE DAY, INJURIES ARE HARD.
WE'VE HAD A FEW PEOPLE WITH SOME INJURIES.
THAT'S NORMALLY THE BIGGEST VARIABLE.
WITH VACATION AND DIFFERENT THINGS, THAT IS JUST BACK FILL.
WE HAVE 17 GUARANTEED SPOTS A DAY WE HAVE TO FILL.
THERE'S FOUR SPOTS WE HAVE A LITTLE BIT OF ROOM WITH EVERY DAY.
BUT FOR PEOPLE TO GET OFF, THERE'S ONLY FOUR SPOTS FOR PEOPLE TO GET OFF.
IF SOMEONE IS SICK OR HURT OR WANTS VACATION OR IS USING THEIR TIME, THAT'S WHAT NORMALLY FILLS THAT.
NOW THAT WE SENT PEOPLE TO PARAMEDIC SCHOOL.
PARAMEDIC SCHOOL WILL CAUSE A LITTLE BIT OF OVERTIME OCCASIONS.
WE TAKE AN EMPLOYEE AND WE SEND THEM OFF TO PARAMEDIC SCHOOL, AND WHILE THEY'RE GONE, BUT, OCCASIONALLY IT COMES UP WHERE, HEY, WE'VE GOT TO BACKFILL THAT SPOT.
IT DOESN'T HAPPEN EVERY SHIFT, BUT IT HAPPENS SOMETIMES.
WE HAD A COUPLE OF PEOPLE IN PARAMEDIC SCHOOL THIS LAST YEAR.
REALLY IT'S CHALLENGING, BUT EVERY TIME WE'VE HAD SOME PRETTY GOOD RAISES OVER THE LAST FEW YEARS, WE HAD A 7% YEAR AND A 5% YEAR.
THAT HAS TO BE REFLECTED ULTIMATELY IN THE COST OF OVERTIME BECAUSE THAT NOW IS A HIGHER REIMBURSEMENT RATE AND ALL THAT.
WE AREN'T DOING ANYTHING DIFFERENT.
WE'RE NOT DOING ANYTHING PARTICULARLY SPECIAL.
WE HAD A BRIEF PERIOD EARLIER IN THE YEAR WHERE WE DID FILL SOME OVERTIME, WHERE IN THE PAST, WE'VE DONE SOME WHAT WE CALL TAP.
WHILE WE GOT ALL OF OUR PEOPLE THROUGH A CERTIFICATION PROCESS TO BE ELIGIBLE TO WORK OUT A CLASS.
ONE OF THE PROBLEMS THAT I HAD WITH THE WAY THE FIRE DEPARTMENT WAS DEALING WITH VACANCIES AND RANKS IS WE WERE EVERY DAY TAPPING PEOPLE UP, SO A FIREFIGHTER WORKING AS AN ENGINEER, AS AN ENGINEER WORKING AS A CAPTAIN.
BUT WE HAD NO PROCESS IN THE FIRE DEPARTMENT TO EVALUATE AND QUALIFY THOSE PEOPLE FOR THOSE SEATS.
SO WE MADE A COMMITMENT TO DO THAT, SO IT TOOK A FEW MONTHS THIS YEAR.
EARLIER IN THE YEAR, WE DID USE OVERTIME A COUPLE OF TIMES WHEN WE COULD HAVE USED TAP.
THAT PROBABLY GOT US OFF ON THE WRONG FOOT AT THE START OF THE YEAR.
WE TALKED ABOUT IT GOING THERE, SAID, WE'RE GOING TO HAVE IT, WE'RE GOING TO DO THIS.
BUT THE BIGGEST ISSUE FOR ME IS, I WAS UNCOMFORTABLE WITH PUTTING SOMEONE IN A CAPTAIN SEAT THAT WE HAVEN'T GIVEN THE EDUCATION, TRAINING, AND VERIFIED THEIR COMPETENCY TO SIT IN THAT SEAT.
WE'VE GOTTEN OVER THAT HURDLE.
TRAINING TEAM GOT THAT SQUARED AWAY.
[01:50:01]
WE'VE GOT PEOPLE NOW THAT ARE CERTIFIED AND QUALIFIED.WHEN THEY TAP UP, WHICH IS CHEAPER THAN BACK FILLING OVERTIME.
>> IF ANYTHING GOES WRONG, SAY, WE'VE AT LEAST TRAINED THIS PERSON, AND THERE'S STANDARDS NOW, HOW MANY YEARS ON A FULL TASK BOOK COMPLETED AND ALL THESE TYPE OF THINGS.
THAT EARLY IN THE YEAR, I THINK THAT DID PROBABLY AFFECT US.
WE'VE MANAGED IT THE BEST WE CAN SINCE THEN, BUT THERE'S BEEN NOTHING DIFFERENT.
IT'S JUST WE'VE HAD SOME PAY INCREASES.
WE HAD SIX VACANCIES AT THE START OF THE YEAR ALONG WITH TWO PEOPLE IN PARA MEXICO.
AT ONE TIME WE HAD EIGHT WE WERE SHORT EIGHT PEOPLE, AND WE WERE PAYING A LOT OF OVERTIME OUT.
SO WE ARE FULLY STAFFED NOW, WE'VE GOT [OVERLAPPING].
>> WE'RE ON A DIFFERENT FOOT HERE ON THIS.
WE ARE FULLY STAFFED GOING INTO THIS NEW BUDGET CYCLE UNLIKE LAST YEAR.
THAT SHOULD BE DIFFERENT. WHEN IT COMES TO TRAININGS, SO YOUR TYPICAL FIRE, EMS, HOW MUCH TRAINING HOURS DO THEY NEED TO DO EVERY YEAR JUST TO MAINTAIN THEIR CERTIFICATIONS? [OVERLAPPING]
>> THEY BE TRAINED CHIEF UP FOR EXACT ANSWER, BUT THE GENERAL ANSWER IS TWO HOURS PER SHIFT PER FIREFIGHTER.
IT'S QUITE A BIT. YOU SHOULD AVERAGE ABOUT TWO HOURS A DAY ON YOUR WORKING DAYS..
>> SOME OF IT'S IN HOUSE. ACTUALLY, MAJORITY IT'S IN-HOUSE.
WE HAVE, THROUGH NFTA, WE DO A LOT OF TRAINING OUT AT THE TOWER OUT AT THE COLLEGE.
THAT PART, WE HAVE A TRAINING BUDGET THAT DOES A GREAT JOB OF ANY OUTSIDE TRAINING THAT HANDLES THAT, AND THE MAJORITY OF THAT IS, EVEN IF WE COVER THE CLASS, WE DON'T NORMALLY COVER BACKFILL UNLESS IT'S A REQUIREMENT FOR THE POSITION YOU'RE IN.
MOST OF THE TIME PEOPLE ARE USING THEIR OWN TIME.
WE'RE JUST PAYING FOR THE CLASS.
>> VERY GOOD. I APPRECIATE IT.
I KNOW WE'RE WORKING HARD ON THIS.
THIS TAKES ME BACK SEVEN YEARS AGO WHEN MY FIRST BUDGET, WE WERE LOOKING AT THESE NUMBERS, AND IT'S ALWAYS BEEN ONE OF THESE ISSUES AND ONE OF THE THINGS TO THE BUDGET WHERE WE NEED TO GRAPPLE WITH.
I'M GLAD WE'RE TAKING MEASURES GOING FORWARD TO TRY AND DO THAT BECAUSE IT ALWAYS PUTS A STRAIN ON THESE BUDGETS ON OUR FINANCES.
>> WE'RE TRYING TO DO A BETTER JOB OF ISOLATING IT AND THE CHALLENGE THAT WE HAD THAT ME AND KAREN AROUND THIS LAST SEVERAL MONTHS IS, I CAME UP WITH MY NUMBERS OVER I THOUGHT WE WERE BLEEDING.
SHE HAD HER NUMBERS AND HAD A THIRD PERSON HAVE THEIR NUMBERS, AND WE ALL SAT DOWN AND SAID, HOW DO WE ALL HAVE DIFFERENT NUMBERS? I THINK WE'VE FIGURED IT OUT, BUT I CAN TELL YOU THE BIGGEST ISSUE WAS THE TAP DIFFERENCE THIS YEAR AND SIX VACANCIES PLUS TWO IN PARAMEDIC SCHOOL.
WE'VE BEEN ABSOLUTELY BACK TO NORMAL FOR THE LAST FOUR MONTHS.
BUT THE FIRST SIX MONTHS OF THE YEAR, WE ABSOLUTELY JUST WE SPENT THE WHOLE THING.
>> I DON'T HAVE A QUESTION, BUT I HAVE A STATEMENT.
I JUST WANT TO SAY, CHIEF, THANKS.
I SEE YOUR RESPONSE TIME FOR A RESIDENTS LESS THAN SIX MINUTES.
IT'S GREAT AS A RESIDENT KNOWING THAT HELP IS JUST FIVE MINUTES AWAY, SO WE REALLY APPRECIATE WHAT YOU'RE DOING. THANK YOU GUYS.
>> VERY GOOD. THANK YOU SO MUCH.
QUESTIONS FOR DEPARTMENTS, AND ANY OPERATING BUDGETS, ANYTHING OF THAT SORT.
SINCE I DON'T HAVE A BOOK, I'M NOT FLIPPING PAGES HERE.
PROPOSED SUPPLEMENTAL REQUESTS.
LOOKING AT THESE, WHICH ONES ARE NOT IN THE GENERAL FUND BUDGET, COMING OUT ANOTHER LOCATION? I'M LOOKING AT PUBLIC WORKS, ALL OF THAT.
>> THAT'S WHERE THESE INDIVIDUAL SLIDES COME INTO PLAY?
>> THAT'S WHERE WE TALK ABOUT PUBLIC WORKS HAD NO SUPPLEMENTALS, OTHER THAN THE WORK ORDER SOFTWARE THAT YOU APPROVED.
THE WAY THAT ITEM CAME INTO PLAY, HALF OF IT WAS BEING IMPLEMENTED THIS YEAR, SO WE MOVED HALF OF THAT INTO THIS, AND THEN THEY HAD SOME CAPITAL PROJECTS.
THEN THE STORMWATER FUND HAD THE STREET SWEEPER, SO THAT'S BEING OUT OF FUND 504.
THEN WE HAD ONE TIME ITEMS BEING PAID OUT OF THE TOURISM FUND.
BUT MOST OF THE SUPPLEMENTALS ARE GENERAL FUND.
>> OH, WE DID HAVE. THANK YOU, ANDA.
WE DO HAVE SOME VEHICLES BEING FUNDED OUT OF THE VEHICLE REPLACEMENT FUND.
AGAIN, WE'RE TRYING TO GET INTO A VEHICLE REPLACEMENT PROGRAM, AND SO WE'RE REPLACING FOUR VEHICLES THIS YEAR.
WE'VE GOT SOME ESTIMATES ON WHAT IT WOULD COST TO TRADE THOSE VEHICLES IN, AND THEN WE HAVE SOME ESTIMATED COSTS ON WHAT IT WOULD COST TO UPFIT THOSE VEHICLES AS WELL
[01:55:01]
AS TO WHAT THE NEW LEASE COST WOULD BE.THAT'S IN THE VEHICLE REPLACEMENT FUND.
>> LOOKING AT THE PUBLIC WORKS.
LET'S START THERE. STREET SWEEPER, 269.
TALK ME THROUGH THE DECISION HERE.
>> CORRECT. THAT IS ONE OF THOSE ONES THAT WE CURRENTLY RENT.
THE IDEA IS TO SAVE THAT RENTAL COST BECAUSE THE STREET SWEEPER HAS A LONGER LIFESPAN.
INSTEAD OF SPENDING THAT MONEY RENTING THAT EVERY YEAR, WE CAN USE THIS.
I THINK IT HAS A 10 TO, WHAT DOES THAT LIFESPAN HAVE? DO YOU REMEMBER? LET ME GET TO THAT BUDGET. I'M SO SORRY.
>> WE'RE BUDGETING RIGHT NOW OUT OF THAT FOR STREET SWEEPING SERVICES ABOUT 60,000?
BASICALLY, TO MAKE THAT UP, JUST TO BREAK EVEN, IT'S GOING TO TAKE ABOUT 4.5 YEARS.
>> I THINK THIS THING HAS A 10 YEAR LIFESPAN OR SOMETHING.
>> I BELIEVE WE ALSO WOULD DO MORE IF WE HAD SOMETHING.
>> WE'RE VERY LEAN AND WHEN WE RENT THAT.
AGAIN, WE WOULD LIKE TO DO MORE THAN WE'RE DOING CURRENTLY.
WHILE THAT'S THE NUMBER RIGHT NOW, IF WE DID IT AS OFTEN AS WE WOULD LIKE, THAT WOULD GO UP.
>> HOW OFTEN DO WE DO IT RIGHT NOW?
>> ONCE A QUARTER, I THINK FOUR TIMES A YEAR.
>> [OVERLAPPING] I THINK IT IS FOUR TIMES.
>> [OVERLAPPING] ARE YOU COMING UP, JEFF?
>> I SAID WE COULD ONLY DO IT ONCE A YEAR, THAT'S ALL WE COULD AFFORD.
>> [LAUGHTER] I DO REMEMBER THAT BUDGET.
>> [LAUGHTER] FOUR SEEMS A LOT TO ME.
>> [INAUDIBLE] THAT WE CAN ONLY DO STREET SWEEPING ONCE A YEAR. I KNOW.
>> CORRECT. BASED ON THE REQUIREMENTS OF OUR MUNICIPAL SEPARATE STORM SEWER LICENSING, WE HAVE TO DO IT FOUR TIMES A YEAR.
THAT'S WHAT WE'VE BEEN DOING FOR THE RENTAL COST.
HAVING ONE WOULD ENABLE US TO DO BEFORE AND AFTER SPECIAL EVENTS.
IT WOULD HELP WITH WINTER WEATHER CLEANUP WHEN WE HAVE TO SALT AND SAND THE ROADS.
IT HELPS WE ALSO HAVE TO CLEAN THAT UP BY THE PERMIT.
IT WOULD ALSO ALLOW US WHEN WE HAVE PIPE BREAKS AND SUCH, TO BE ABLE TO CLEAN THE ROADS EASIER THAN JUST HAVING TO SCRAPE THEM WITH THE BACKOS.
>> DO WE KNOW THE WARRANTY ON THAT THAT WE'RE LOOKING AT?
>> I DON'T KNOW IF WE'VE GOTTEN IN THOSE DETAILS IN THE PRICING, BUT YEAH, WE DEFINITELY WOULD BE LOOKING AT WARRANTY.
THE ONE WE RECENTLY HAD FOR THE LAST MONTH, IF YOU'VE SEEN THE BIG WHITE THING DRIVING AROUND, THAT WAS VERY SIMILAR, IF NOT THE EXACT SAME MODEL AS WE WOULD BE LOOKING AT BUYING.
WE WERE ABLE TO RENT WHAT WE WANT TO PURCHASE AND BE ABLE TO TRY IT OUT, AND EVERYTHING'S SEEMED TO GO SMOOTHLY.
>> MY CONCERN IS MAKING SURE WE HAVE WARRANTY BECAUSE OBVIOUSLY, THAT'S A HUGE COST, 269,000, AND THEN, IT'S GOING TO TAKE AWHILE TO OBVIOUSLY BREAK EVEN, JUST THERE, BUT THEN YOU HAVE ONGOING MAINTENANCE BECAUSE THINGS ARE GOING TO BREAK.
I WANT TO MAKE SURE WE'RE COVERED IN WARRANTY SO THAT WE CAN
MAXIMIZE THAT 10 YEAR LIFE SPAN GOING FORWARD. >> [INAUDIBLE]
>> YOU MIND COMING UP TO THE MIC?
>> YES. I APOLOGIZE [INAUDIBLE] YOU ALL WE'RE TALKING ABOUT IT.
WARRANTY ON THIS MACHINE IS TWO YEARS OR 2,000 HOURS.
ON TOP OF THAT, WE OFFER A FIVE YEAR WARRANTY ON THE CONTAINER AND CHAT.
>> THERE ARE VARIOUS OPTIONS WE HAVEN'T GOTTEN INTO COMPLETELY YET.
>> TWO YEARS MIGHT BE A LITTLE ESPECIALLY WHEN AGAIN, IT'S TAKEN US 4.5 YEARS JUST TO BREAK EVEN ON IT FROM WHAT WE CURRENTLY BUDGET.
>> [INAUDIBLE] >> CORRECT. IF WE GET TO USE IT MORE FREQUENTLY, THAT IS DEFINITELY A BENEFIT.
DOES THIS TAKE ANY SPECIALIZED TRAINING CERTIFICATIONS TO DRIVE THIS THING?
>> NO, THAT WAS ONE OF THE SELECTION CRITERIA FOR THIS PARTICULAR UNIT.
>> WE HAVE PEOPLE WHO ARE GOING TO TO BE ABLE TO DO THAT?
>> YEAH. THE IDEA, IT WOULD BE PART OF A EXISTING FTE THAT WOULD DO THIS.
THAT WOULD BE A PART TIME GIG A COUPLE OF TIMES A WEEK FOR THAT PERSON IN OUR STORMWATER CREW.
>> WE'RE GOING TO USE A COUPLE OF TIMES A WEEK.
>> YES, A COUPLE OF TIMES A WEEK FOR SOME PORTION. WE'RE NOT GOING TO GET.
>> [OVERLAPPING] I NOW UNDERSTAND. JUST TO GET PORTION.
VERY GOOD.. THANK YOU SO MUCH ON THAT.
THAT WAS A LOT OF MY MAIN ONE.
I JUST WANT TO MAKE SURE THAT WE ARE DOING OUR DUE DILIGENCE, WE'RE MAKING BIG EQUIPMENT PURCHASES LIKE THAT.
I THINK THAT'S SOMETHING THAT'S GOING TO PROBABLY BENEFIT US IN THE LONG RUN.
IT'S AN ASSET THAT WE WILL BE ABLE TO, WHEN THE TIME COMES, SELL, IF NEED BE SO WE'RE NOT CAUGHT IN THIS CYCLE OF JUST PAYING FOR CONTRACT SERVICE, WHICH INEVITABLY WILL INCREASE AS WELL.
THANK YOU. LET'S GO INTO SOME OF THESE OTHER ONES.
[02:00:03]
>> MAYOR, I ALSO WANTED TO TELL YOU THAT THERE IS FUND BALANCE IN THE STORMWATER FUND TO COVER THIS EXPENSE.
>> WELL. IT'S OUT OF THE STORMWATER, AND WE HAVE QUITE A HEALTHY FUND THERE.
>> OKAY. THAT'S WHAT I THINK I REMEMBER.
LOOKING AT POLICE HERE FOR THE SUPPLEMENTAL REQUEST.
GOING BACK A FEW YEARS, AT LEAST LAST YEAR, MAYBE PERHAPS A YEAR PRIOR, THERE'S BEEN A REQUEST FOR LICENSE PLATE READER.
IS THERE A REASON WHY WE'RE PUSHING THAT OFF MULTIPLE YEARS AND WHAT THE DECISION WAS FOR THAT? I SAY THAT ONLY FOR THE FACT THAT WE HAVE ONE LINE ITEMS TOTALING.
>> I'LL LET YOU HANDLE THIS ONE.
>> I'LL LET YOU HANDLE THIS ONE. >> OKAY.
>> WE HAVE ONE LINE ITEMS TOTALING FOR THE SUPPLEMENTAL REQUEST THAT TOTAL THAT AMOUNT, AND IT IS ONLY 19,000. I KNOW IT'S ONGOING.
BUT WHAT IS THE THINKING OF NOT USING THE LICENSE PLATE READER? I'M NOT EVEN SURE WHAT WE'RE TALKING ABOUT HERE, BUT IT SEEMED IMPORTANT WHEN I SAW IT IN THE SUPPLEMENTALS AND THEN GIVING PRECEDENCE TO HONOR GUARD UNIFORM REPLACEMENT AND HONOR GUARD SIDEARMS.
>> HONOR GUARD ITEMS ARE ONE TIME PURCHASES, OBVIOUSLY THAT WE CAN GET PAST.
THESE LICENSE PLATE READERS ARE ACTUALLY INTEGRATED INTO OUR FLEET VEHICLE CAMERA SYSTEMS, WHICH IS A CONTRACT THAT WE'RE ACTUALLY GOING TO BE RENEWING NEXT YEAR.
LOOKING AT THAT FUTURE AND UTILIZING THAT CONTRACT RENEWAL TO THEN IMPLEMENT THAT INTO THAT FULL ON [INAUDIBLE] BODY CAMERA SYSTEM AND STAFF.
>> THAT'S THE REASON FOR WHY WE ARE PUSHING IT OFF.
THERE'S NO REASON, OH, SORRY, CHIEF, YOU CAN'T GET IT THIS YEAR, MAYBE NEXT YEAR.
WE ARE PLANNING ON IT FOR NEXT FISCAL YEAR?
>> THAT IS GOOD TO KNOW. THANK YOU FOR THE CLARIFICATION.
IT'S NOT ON SUPPLEMENTAL. I WANT TO HAVE ANY ADDITIONAL SUPPLEMENTAL QUESTIONS.
I NEED DEVELOPMENT UP HERE FOR A SECOND. DON'T WORRY, WES.
I SEE THIS. WELL, IT ACTUALLY IS PART OF THE SUPPLEMENT.
WE'LL START HERE. REQUESTING NEW NEIGHBORHOOD SERVICES OFFICER.
>> RIGHT NOW, WE HAVE FIVE NEIGHBORHOOD SERVICE?
>> WE HAVE FIVE OFFICERS AND ONE SUPERVISOR.
>> OKAY. I'M ASSUMING THAT BASED ON THIS REQUEST, THEY ARE INUNDATED.
>> WHAT WE'RE HAVING, AND IF YOU RECALL, WHEN WE DID OUR CODE ENFORCEMENT UPDATE A COUPLE OF MONTHS AGO, WE'RE TRYING TO MAINTAIN THAT SEVEN-DAY TURNAROUND ON REINSPECTING CODE VIOLATIONS, AND THAT'S BECOMING CHALLENGING FOR US UNDER OUR CURRENT STAFFING, ALONG WITH DOING THE MULTI-FAMILY INSPECTIONS AND THE SHORT-TERM RENTAL INSPECTIONS AND THE LONG-TERM RENTAL INSPECTIONS.
OUR GOAL HERE IS BY REQUESTING THIS POSITION, WE WERE ABLE TO REALLY FOCUS ONE SENIOR OFFICER ON FOCUSING ON THE MULTIFAMILY AND HOUSING INSPECTIONS TO FREE UP SOME OF THOSE OTHER RE-INSPECTIONS SO WE CAN MAINTAIN THAT SEVEN-DAY TURNAROUND.
>> GOT YOU. THAT COST OF THE 70,000.
WELL, LET ME STILL HAVE YOU IN A SECOND SINCE WE'RE TALKING ABOUT ALL THIS.
THAT'S GOING TO HELP GET TO THE SEVEN DAYS.
>> THAT'S GOING TO HELP US KEEP THAT, YES.
>> IN ADDITION, I KNOW THAT WE'RE IN THE PROCESS ALSO OF REWRITING SOME ORDINANCES FOR SHOPPING CENTERS.
>> DO YOU FEEL THAT THIS PERSON WOULD ALSO HELP IN THAT REGARD AS WELL?
>> IT'S A COMBINATION, ABSOLUTELY.
BECAUSE WE ARE LOOKING AT PRESENTING ADDITIONAL ORDINANCES THAT WE WILL BE REQUIRED TO ENFORCE, IT'S JUST MORE WORK ULTIMATELY THAT DIVISION AND THAT DEPARTMENT'S GOING TO BE DOING.
PART OF YOUR BUDGET, I ALSO SEE IN HERE.
I THINK IT'S AROUND 40,000 TO 6 STONES.
WE HAVE AGREEMENT WITH 6 STONES RIGHT NOW THAT AUTOMATICALLY, PART OF THAT AGREEMENT IS WE GIVE 25,000 FOR ADMINISTRATIVE COST, AND THEN WHEN THEY DO THEIR BLITZ, THEY DO IT TWO TIMES A YEAR.
ANY HOMES THAT THEY DO WORK ON IN THE CITY OF BEDFORD,
[02:05:03]
WE PROVIDE A REIMBURSEMENT COST TO THAT.>> THAT'S JUST A REIMBURSEMENT COST FOR THEM TO WORK ON SOME HOMES IN BEDFORD?
>> IT'S THEIR EXPENSE COST FOR THOSE HOMES, AND THERE'S ALSO THE WAY THE CURRENT AGREEMENTS SET UP, WE ALSO REIMBURSE VOLUNTEER HOURS.
IT'S A REIMBURSEMENT FOR THEM AS WELL.
>> ARE WE USING ALL THAT 40,000 EVERY TIME MANUALLY?
>> WE HAVE NOT HISTORICALLY USED ALL OF THAT.
MORE THAN HALF OF THAT GOES TO ADMIN COST.
I WOULD SAY PROBABLY ON AVERAGE SINCE I'VE BEEN HERE, WE'VE PROBABLY UTILIZED, I'M GOING TO ESTIMATE MAYBE ADDITIONAL 10 TO 12,000 OR SO.
WE ARE LOOKING AT OTHER WAYS TO UTILIZE THAT MONEY BECAUSE 6 STONES IS LIMITED ON WHAT THEY CAN DO WITH THAT BLITZ.
ANDREW AND I HAVE STARTED THOSE CONVERSATIONS AS TO WHAT THAT'S GOING TO LOOK LIKE.
>> CHANGING THAT LINE ITEM A BIT TO SEE WHAT THAT LOOKS LIKE GOING FORWARD.
>> IT REALLY DEPENDS ON WHAT THEIR APPLICATION LOAD LOOKS LIKE.
I WOULD SAY, AGAIN, ON AVERAGE,
THEY'RE USUALLY DOING FOUR TO FIVE A YEAR. WOULD YOU? >> [INAUDIBLE]
>> FOUR TO FIVE [INAUDIBLE]. EIGHT TO 10.
>> EIGHT TO 10 HOMES A YEAR. [INAUDIBLE]
>> YOU THINK PERHAPS YOU SEE NEED ELSEWHERE THAT YOU COULD TAKE CARE OF LIKE THAT AS OPPOSED TO WAITING FOR 6 STONES TO GET IT IN THE SCHEDULE?
6 STONES IS LIMITED ON WHAT THEY CAN DO.
TYPICALLY, THEY HAVE A ROLE, THEY DON'T GO INSIDE THE HOUSE, OR SOME THINGS ARE ABOVE THEIR CAPABILITIES.
BASED ON EXPERIENCE IN MANAGING THESE PROGRAMS IN OTHER CITIES, I THINK THERE ARE OTHER OPTIONS THAT WE CAN LOOK AT TO COMBINE WITH 6 STONES.
>> DO YOU HAVE ENOUGH BUDGET AND LEGAL FEES AND THAT SORT OF STUFF IN YOUR BUDGET?
>> FOR INSTANCE, IF WE HAVE A SITUATION LIKE WE DID A FEW YEARS AGO WITH GUPTA.
>> LEGAL FEES DO NOT COME OUT OF THE DEVELOPMENT DEPARTMENT BUDGET.
THAT'S A SEPARATE LINE ITEM SOMEWHERE.
>> SURE. YOU'RE ASKING A QUESTION ABOVE MY PAY GRADE ON THAT ONE SO I'M GOING TO DEFER TO SOMEONE.
>> YOU'RE TRYING TO GET AT THE ACTUAL CLEANUP PIECE, NOT JUST THE LEGAL FEE.
>> I'M SORRY, ABATEMENT COSTS.
>> I SHOULD KNOW THIS NUMBER OFF THE TOP OF MY HEAD, BUT WE ARE ROUGHLY 60,000, I BELIEVE IS WHAT WE HAVE IN ABATEMENT COST.
WE USUALLY SPEND JUST ABOUT EVERY PENNY OF THOSE.
>> AT THIS TIME, AND YOU DON'T REALLY KNOW HOW TO ESTIMATE THAT AS FAR AS FURTHER BUDGET.
THAT'S MORE THAN $60,000 WORTH OF ABATEMENT TO DO RIGHT NOW.
>> WELL, WE'VE GOT TO GO THROUGH THE CODE ENFORCEMENT PROCESS BEFORE WE CAN ACTUALLY ABATE, SO WE CAN MAKE SURE THAT WE EITHER FILE THE LIENS OR WE GET REIMBURSED FOR THOSE FROM THE PROPERTY OWNER.
SO FAR SINCE I'VE BEEN HERE, I DON'T BELIEVE WE'VE GONE OVER THAT 60,000, BUT AS WE GET MORE PROACTIVE IN CODE ENFORCEMENT, WE DO SPEND MORE MONEY EACH YEAR.
>> CAN I JUMP IN AS WELL? I THINK THAT OUR TEAM HAS DONE A GREAT JOB IN TRYING TO PRIORITIZE WITH THOSE DOLLARS, KNOWING WHERE THAT BUDGET IS, AND RECOGNIZING SUMMER MONTHS ARE HARDER THAN OTHERS, BUT AT THE SAME TIME, PLEASE KNOW, IT'S IMPOSSIBLE TO KNOW WHEN WE CAN COME ACROSS ANOTHER, I HATE TO SAY IT, BUT GUPTA PROJECT, IT IS WHAT IT IS.
BUT IF SOMETHING LIKE THAT WERE TO HAPPEN, I THINK EVERYONE ON STAFF KNOWS THAT THERE ARE NO SKIMPING ON THOSE THINGS.
WE FIND THE FUNDS, AND WE WILL ADDRESS IT AS WE NEED TO.
IF WE HAVE TO COME TO YOU ALL FOR HELP ON SOMETHING THAT'S SIGNIFICANT, IN A DETRIMENT, WE WILL ALWAYS DO THAT.
IT IS A REALLY HARD THING TO GAUGE.
>> YES, DON'T DO UNDER BUDGET.
I THINK A LOT OF PEOPLE, THIS WILL BE ONE OF THE FIRST TIMES IN A WHILE IN THIS BUDGET THAT WE ARE ADDING AN FT, AND I'M ALWAYS VERY HESITANT ABOUT IT, ONLY BECAUSE IT PUTS SO MUCH STRAIN ON OUR FINANCES.
[02:10:01]
WHICH WE ARE, WHICH IS AGING AND AGING INFRASTRUCTURE, WE'RE BUILT OUT.I READ SOMEWHERE THAT IF CITIES DO NOT INVEST IN CODE COMPLIANCE, CODE ENFORCEMENT, IT BRINGS DOWN VALUES FOR THE ENTIRE CITY.
WHICH, AGAIN, YOU'RE GOING TO SEE FOR PROPERTY VALUES AND EVERYTHING ELSE.
THAT'S THE ONLY WAY TO KEEP THE CITY LOOKING GOOD, KEEP IT ATTRACTIVE, KEEPING OUR SHOPPING CENTERS, GOOD FOR NEW BUSINESSES TO COME IN TO ADD TO THE SALES TAX BASE, AND KEEPING OUR PROPERTY VALUES INCREASED.
AGAIN, I ALWAYS LIKE TO COMPARE GRAPEVINE HAS HOW MANY?
>> EVE CLARK HAS FOUR, IF I'M NOT MISTAKEN.
>> OH, IT MAY BE TWO. MAYBE I'M GETTING MY CITIES CONFUSED, IT MAY BE TWO.
>> GREAT BIN ONLY HAS TWO CO COMPLIANCE OFFICERS.
THEY'RE ONLY JUST A FEW YEARS YOUNGER THAN US.
IF THEY'RE NOT CAREFUL, THEY WILL HAVE ISSUES, TOO.
I THINK THIS IS DEFINITELY NEEDED.
I DO HAVE A QUESTION ON THE COST, THOUGH.
I KNOW THAT THIS IS NOW TIME FOR KAREN.
A APPRECIATE. THANK YOU REST FOR YOUR TIME.
KAREN, WHEN WE'RE LOOKING AT THESE POSITIONS.
I WAS SHOCKED THAT THERE WASN'T MORE, I DON'T KNOW WHY, SO THIS IS INCLUDED WITH EVERYTHING, SALARY BENEFITS, IT'S ALL. IT'S JUST 70,000?
>> YES. THEY WORKED WITH HR TO COME UP WITH THAT CALCULATION.
YES. TYPICALLY, WHEN WE BUDGET A NEW POSITION, WE GO WITH THE LOWEST TIER, USUALLY EMPLOYEE ONLY.
USUALLY IT'S THE HIGH DEDUCTIBLE PLAN, THINGS LIKE THAT.
WHEN THE POSITION IS HIRED, THAT EMPLOYEE MAY CHOOSE EMPLOYEE FAMILY, SO IT MAY COME IN HIGHER THAN WHAT WE'RE BUDGETING.
BUT USUALLY WE DO HIGH DEDUCTIBLE EMPLOYEE ONLY WHEN WE'RE LOOKING AT BENEFITS.
>> I JUST WANT TO SEE WHERE WE GET THAT NUMBER.
>> TYPICALLY, THAT'S WHAT WE DO.
>> VERY GOOD. I DO HAVE A QUESTION FOR YOU ALL.
IT WAS MENTIONED PREVIOUSLY AT OUR LAST CITY COUNCIL MEETING WHEN WE TALKED ABOUT THE RETROACTIVE, NON RETROACTIVE COLA, THAT THERE'S DIFFERENT FUNDING MECHANISMS FOR THIS.
>> WHAT WHAT ARE THEY, AND WHAT DOES THAT LOOK LIKE?
>> WE DID, BRADY HAD AN IDEA BEFORE WE KNEW WHAT WE COULD DO WITH THIS BUDGET.
THE IDEA WAS WE COULD HAVE SOLD DEBT TO FUND THE RETROACTIVE OR THE NON RETROACTIVE COLA.
NOW, WE DIDN'T BRING THAT OPTION FORWARD TO YOU TONIGHT BECAUSE WE DIDN'T NEED TO WITH THE OPTION OF BEING ABLE TO FUND IT WITH THE PROPERTY TAX RATE.
WE DIDN'T HAVE THAT IN OUR PRESENTATION THIS EVENING.
BUT THAT WAS AN OPTION AT THE TIME, BECAUSE WE JUST DIDN'T KNOW WHAT THIS WAS GOING TO LOOK BASED ON OUR CERTIFIED ROLE AND BASED ON WHAT OUR TAX RATE CALCULATION WAS GOING TO LOOK LIKE.
BUT THAT WAS AN OPTION THAT WE WERE CONSIDERING BECAUSE WE KNEW HOW IMPORTANT THE TMRS COLA WAS TO THE EMPLOYEES.
WE WERE THINKING OF WAYS WE COULD FUND THAT IF THE TAX RATE COULDN'T SUPPORT IT.
WE WERE TRYING TO FIGURE OUT A WAY THAT WE COULD COME TO YOU WITH AN IDEA TO FUND THAT COLA IN THE EVENT THE TAX RATE COULDN'T SUPPORT IT.
>> I GUESS MY QUESTION IS, WHY WOULD WE NOT DO THAT AND FREE UP MORE REVENUE IN THE GENERAL FUND?
>> SINCE IT'S CLOSE TO $500,000.
>> SURE, WITH WHERE INTEREST RATES ARE RIGHT NOW, IT'S GOING TO COST MORE FOR THE DEBT THAN IT WOULD FROM OUR OPERATING BUDGET AT THE MOMENT.
IT'S GOING TO COST US A LITTLE UNDER 500,000, IT WOULD COST US A LITTLE BIT MORE THAN 500,000 PER YEAR FROM THE DEBT FUND.
IT'S GOING TO BE IT'S THE SAME PENNIES.
IT'S JUST WHETHER THEY'RE INS PENNIES OR IF THEY'RE VOTER APPROVAL RATE MAINTENANCE PENNIES.
SINCE WE WERE ABLE TO FUND IT UNDER OUR PROPOSED VOTER APPROVAL RATE, WE THOUGHT WE'D KEEP IT THERE.
THEN WHENEVER INTEREST RATES ARE GOING TO, THEY'RE PROBABLY GOING TO DECLINE IN THE NEXT YEAR OR TWO, THAT MAY BE A GOOD OPPORTUNITY TO REFUND SOME OF THE DEBT WHENEVER THE RATES ARE LOWER.
WE MAY HAVE A LITTLE BIT MORE FLEXIBILITY IN FUTURE YEARS IF WE ISSUE DEBT FOR THIS.
IT WOULD JUST BE A LITTLE BIT PREMATURE RIGHT NOW.
>> I JUST WANTED TO CHECK WITH THAT AND UNDERSTAND WHAT'S GOING ON.
EITHER WAY, THOUGH, IT WOULDN'T MAKE REALLY THAT MUCH FINANCIAL IMPACT BECAUSE IT'S GOING TO INS INSTEAD OF [OVERLAPPING].
>> THE SAME PENNIES ON THE TAX RATE.
>> GOT IT. THANK YOU SO MUCH ON THAT.
I'M WAITING ON SOMETHING TO CLEAR UP HERE.
LET'S TALK PARKS AND RICK. I WAS GOING TO LET YOU OFF THAT EASY, MARK.
>> HE JUST THOUGHT HE WAS GETTING THAT EASY.
YOU JUST THOUGHT YOU'RE GETTING OUT OF IT.
>> MARK, DO YOU MIND COMING UP TO THE PODIUM?
>> OH, YOU EVEN HAVE TO COME UP.
OH. I'M GOING TO SIT BACK DOWN.
[02:15:01]
[LAUGHTER]>> I DON'T HAVE CHRISTMAS TREES.
>> WE'RE NOT TALKING CHRISTMAS AND CHRISTMAS TREES.
>> I'M HAPPY TO TALK CHRISTMAS TREES IF YOU'D LIKE.
>> VERY GOOD. IN YOUR SUPPLEMENTALS YOU ARE ASKING FOR A FEW A FEW THINGS TRIPS.
WHAT IS THAT GOING TO GET US FOR SENIOR TRIPS?
>> THAT WILL GET US MULTIPLE TRIPS.
THE MOST IMPORTANT ONE WILL BE THE CASINO, THE TRIP TO THE CASINOS.
>> THAT IS THE MOST IMPORTANT ONE.
>> THAT IS TO THE SENIORS RIGHT NOW.
THAT IS PRIMARILY WHY WE MOVE THIS ONE FORWARD OR TRYING TO MOVE IT FORWARD.
BUT IT ALSO OPENS UP OPPORTUNITIES TO TAKE BIGGER GROUPS TO RANGERS GAMES, WHERE RIGHT NOW, I THINK WE USE PDS 15 PASSENGER BAND.
IN THE SPRINGTIME, WE LIKE TO GO TO THE ARBORETUM, KIMBALL ART MUSEUMS, AND THINGS LIKE THAT.
WE'RE TRYING TO EXPAND WITH THIS REQUEST, THE ABILITY TO TAKE MORE PEOPLE TO TRIPS.
TRIPS ARE A STAPLE IN A SENIOR CENTER.
IN THIS ONE THING THAT WE HAVE NOT BEEN ABLE TO DO, EXCEPT WITH THE KINDNESS OF SOME OF OUR RESIDENTS TO GET US TO A CASINO EARLIER THIS YEAR.
>> WE'LL HAVE IT BUDGETED THIS YEAR GO.
>> WE WILL HAVE IT BUDGETED HOPEFULLY ONGOING.
>> VERY GOOD. OUT OF THE TOURISM FUND, WE HAVE A FEW THINGS IN THERE AS WELL FOR SUPPLEMENTAL REQUESTS.
>> ALSO HAVE HUNTER HERE TODAY, TOO.
[LAUGHTER] YOU'RE GOING TO GO TO TOURISM WITH TOURISM.
>> I MIGHT. BUT SO WE ARE TALKING ADDING FOR OUR HOLIDAY SHOW, SOME ENHANCEMENTS.
THAT'S JUST GOING TO BE ONE TIME JUST FOR HOLIDAY FOR THE TREE LIGHTING, CORRECT?
>> CORRECT. IF YOU'RE TALKING ABOUT?
>> YES. [LAUGHTER] NEXT, THE OUTDOOR CONCERT.
HOW MANY CONCERTS ARE WE GETTING WITH THIS?
>> THAT'S GOING TO BE A TOTAL OF EIGHT; CORRECT? YES, A TOTAL OF EIGHT, WE'RE ADDING FOUR.
>> TOTAL OF SIX? WE'RE HAVING FOUR.
>> WE ARE HAVING FOUR. RIGHT NOW WE HAVE TWO, WE'RE GOING TO BE HAVING FOUR MORE.
>> WE THOUGHT ABOUT WE GOING TO FRONT LOAD THEM IN A CERTAIN MONTH OR WE PUT THEM OUT THROUGHOUT.
>> WE HAVE IN SPRING AND FALL.
THESE ARE MOVING TO FALL, I BELIEVE.
>> ONE IN THE SPRING. THEN WE'RE MOVING TO THE FALL.
WHEN IT COMES TO OUR CULTURAL ARTS PROGRAM?
>> IS THAT THAT'S ALL FUNDED OUT OF TOURISM?
>> CAN YOU TALK A LITTLE BIT ABOUT ME ABOUT WHAT ALL IS ENCOMPASSING IN THAT? WHAT ALL DUTIES AND I'M LOOKING AT YOUR BUDGET, IT DOESN'T HAVE THAT MUCH IN IT.
WE GOT THE ROY SAVAGE POOL MURAL.
IS THERE ANY OTHER THERE'S NO OTHER LINE ITEMS FOR CULTURAL?
IF YOU WANT TO LOOK AT WHAT THEY'RE DOING?
>> I'M JUST CURIOUS WHAT OUR CULTURAL ARTS MANAGER.
WHAT IS THE PLAN FOR THE YEAR? WHAT ARE WE GOING TO BE FOCUSING ON WHEN IT COMES TO CULTURE BEDFORD.
>> I THINK THE PRIMARY THING IS WITH OBS.
OBVIOUSLY, WE ARE, AS I THINK WE'VE DONE A COUPLE OF PRESENTATIONS NOW.
I THINK WE'RE TRYING TO FIND A LITTLE BIT OF AN IDENTITY IN THAT AREA.
A BIG PART OF IT IS GOING TO BE THE OBS FACTOR AND WHAT WE CAN DO WITH THAT BUILDING.
AS FAR AS A LOT OF THIS IS COMMUNITY BASED ART PROJECTS AND THINGS LIKE THAT, WE DO WANT TO BRING IN MORE PROGRAMMING.
WE CAN USE OBS RIGHT NOW FOR PROGRAMMING.
THAT'S OUR GOAL RIGHT NOW IN THE SHORT TERM.
>> BY PROGRAMMING, ARE YOU TALKING CLASSES?
>> SHE'S OFFERED SEVERAL OF THEM UP TO THIS POINT.
>> ONE OF THE OTHER THINGS THAT THE CULTURAL ARTS TEAM DOES IS THEY DO ALL OF OUR CULTURAL EVENTS. HOLY FEST.
>> ART OF THE PARK CONCERT SERIES.
THAT'S THE OTHER THING THAT THEY DO OTHER THAN THE ART PROJECTS AND THE CLASSES AND ALL OF THOSE.
>> VERY GOOD. I JUST CURIOUS ABOUT WHERE THOSE FUNDS ARE GOING, WHAT THE DIFFERENT PROJECTS ARE THAT WE HAVE GOING ON, BECAUSE I DON'T THINK WE'RE BEING AS FORTHRIGHT IN TO WHAT OUR CULTURAL ARTS PROGRAM ENTAILS. COUNCIL MEMBER DONOVAN BRANDON.
[02:20:04]
>> I DON'T KNOW IF THIS IS THE RIGHT TIME, BUT I WANT TO MAKE SURE THAT WE ARE AWARE THAT NEXT YEAR IS THE 250TH ANNIVERSARY OF OUR NATION.
FOURTH OF JULY MAY BE OUT OF THIS WORLD.
>> YES, WE ARE AWARE THAT IT IS 250 YEARS, AND WE ARE READY FOR THAT.
WE'RE ASSUMING THERE WILL BE MORE FOLKS OUT THERE.
>> VERY GOOD. YES. CUSTOMERS SABLE.
>> MARK, ARE YOU IN CHARGE OF THE MEDIANS AND ON THE STREETS, AND THE TREES AND ALL THAT?
>> YOU'VE GOT A BUDGET HERE OF, LIKE, IT LOOKS LIKE 19,000 COMPARED TO 38,000 LAST YEAR FOR BOTANICALS AND AGRICULTURE, I ASSUME THAT'S WHAT THAT'S FOR.
>> WHAT BUDGET ARE YOU LOOKING AT RIGHT NOW?
>> SOME OF THE MEDIANS ARE PRETTY TRASHY.
>> IS THAT GOING TO BE CLEANED UP THIS YEAR? DO WE HAVE ENOUGH MONEY TO DO THAT?
>> I DON'T THINK THAT PIECE THAT YOU'RE TALKING ABOUT THERE IS ADDRESSING CLEANING UP THAT.
WE HAVE MANY MILES OF MEDIANS.
IT IS A TOPIC OF CONVERSATION INTERNALLY, JUST BECAUSE I DON'T KNOW WHAT YOU'RE SEEING IN THE MEDIANS, BUT WE HAVE A LOT OF BEDFORD PAIR.
A LOT OF THEM ARE REALLY IN TROUBLE. HALF OF THEM ARE SICK.
WE'RE ACTUALLY WORKING RIGHT NOW WITH THE BEAUTIFICATION BOARD TO ADDRESS SOME OF THOSE WITH THE FUNDS THAT THEY HAVE AVAILABLE TO THEM.
WE WANT TO PUT SOME NEW TREES IN THERE.
WE'RE WORKING WITH THEM ON THAT.
WE'RE ADDRESSING THE ONES THAT WE CAN, BUT WE'RE NOT GOING TO GO IN AND WE DON'T HAVE A PLAN NECESSARILY TO ADDRESS THOSE.
>> THE ENTRANCE PLAN, SO WHEN IS THAT TO TAKE PLACE, AND IS THIS IN THAT BUDGET?
>> IT IS NOT. THAT PLAN IS OUT THERE.
WE'RE OBVIOUSLY WORKING WITH TEXT DOT THROUGH THE GREEN RIBBON GRANT RIGHT NOW WITH HARDWOOD 121.
THAT IS CURRENTLY, I THINK, ABOUT TO BE CLOSED ON THE PROPOSAL. THEY'VE LET THAT.
ONCE THAT IS CLOSE, WE'LL START WORKING WITH TEXT DOT AND WESTWOOD TO GET THAT PROJECT GOING.
THAT IS THE ONLY PROJECT RIGHT NOW THAT WE HAVE THAT WAS ADDRESSED IN THE WESTWOOD PLAN.
>> IF THAT TAKES PLACE, IT WOULD BE NICE TO HAVE THE CITY LOOK BETTER ALL OVER.
NOT HAVE THE DEAD BEDFORD PAIRS ALONG HARDWOOD AND JUST TO POLISH IT UP A BIT. THANK YOU.
>> WELL, WE GOT MARK UP HERE OR ANYTHING ELSE? YOU'VE DONE GIRL ON YOUR FREE TODAY.
>> I HAVE ONE LAST COMMENT, NOT A QUESTION.
WHEN I'M LOOKING AT THE BUDGET, THIS IS IN DEVELOPMENT.
BECAUSE WE ARE ADDING AN ADDITIONAL NEIGHBORHOOD SERVICES OFFICER, SHOULDN'T OUR TARGETS WHEN WE'RE TALKING FOR ABATEMENTS AND EVERYTHING ELSE, I THINK WE HAVE ABATEMENTS AT, LET ME SEE HERE, 2,000.
SINCE WE'RE ADDING SOMEBODY ELSE, SHOULD WE NOT INCREASE THAT SINCE LAST YEAR?
>> PROBABLY WHAT WE'LL WORK WITH IS WHEN WE DO THE ADOPTED BUDGET.
THESE WILL PROBABLY GET UPDATED.
THIS IS JUST PROPOSED. [OVERLAPPING]
>> PROPOSED. I WAS JUST FIGURING SINCE WE'RE PROPOSING TO ADD A NEW NEIGHBORHOOD SERVICE OFFICER, WE SHOULD PROBABLY TARGET THAT AND INCREASE THAT OBVIOUSLY FOR THEIR WORKLOAD.
WE'LL WORK WITH WEST ON THAT ONE.
>> COUNCIL, ANY ADDITIONAL QUESTIONS OVER SUPPLEMENTALS, DIFFERENT DEPARTMENTS, FUNDS, FUN STUFF.
I THINK THAT IS IT. VERY GOOD.
THANK YOU SO MUCH FOR ANSWERING ALL THE QUESTIONS AND GETTING ALL THIS TOGETHER.
OUR NEXT MEETING IS AUGUST 12 TO ACCEPT THAT AND THEN ADOPT THE BUDGET ON SEPTEMBER 9.
>> YES. YOUR PACKET WENT OUT THIS EVENING WITH EVERYTHING IN THERE FOR THE AUGUST 12 MEETING.
THANK YOU SO MUCH FOR YOUR TIME AND YOUR CHALLENGING QUESTIONS.
>> THANK YOU SO MUCH. WITH THAT, I KNOW WE ALL DON'T WANT TO SIT HERE ALL NIGHT.
>> DO WE HAVE TO DO THAT EVEN IF IT'S THE WORK SESSION?
>> I'D LIKE TO MOTION TO ADJOURN, PLEASE.
>> WE HAVE A MOTION TO ADJOURN FROM GAMER SECOND.
[02:25:02]
ALL FAVOR, SAY AYE.AYE. WE'RE ADJOURNED AT 8:25. THANK YOU, ALL VERY MUCH.
* This transcript was compiled from uncorrected Closed Captioning.