8. Consider a resolution authorizing the City Manager or her designee to enter into an agreement with Cigna for the City’s employee medical and dental insurance benefits effective October 1, 2025

[8. Consider a resolution authorizing the City Manager or her designee to enter into an agreement with Cigna for the City’s employee medical and dental insurance benefits effective October 1, 2025]

ITEM NUMBER 8.

CONSIDER A RESOLUTION AUTHORIZING THE CITY MANAGER OR HER DESIGNEE TO ENTER INTO AN AGREEMENT WITH CIGNA FOR THE CITY'S EMPLOYEE MEDICAL AND DENTAL INSURANCE BENEFITS, EFFECTIVE OCTOBER 1ST, 2025.

GIVE YOU HUMAN RESOURCES DIRECTOR, STEPHANIE AYERS. GOOD EVENING.

>> GOOD EVENING, MAYOR AND COUNCIL. WE'RE HERE TONIGHT TO TALK TO YOU ABOUT THE RENEWAL OF THE 2025-2026 FISCAL YEAR EMPLOYEE BENEFIT PLANS.

I HAVE OUR CONSULTANT HERE WITH HUB ANDREW WEIGER, WHO'S GOING TO PRESENT THE RENEWAL TO YOU, AND THEN WE'LL BE HERE TO ANSWER QUESTIONS THAT YOU HAVE AFTER THAT.

>> GOOD EVENING, MAYOR COUNCIL.

>> GOOD EVENING.

>> MY NAME IS ANDREW WEIGER.

I'M A SENIOR ACCOUNT EXECUTIVE OF HUB INTERNATIONAL.

LIKE STEPHANIE ALLUDED TO, WE ARE GOING TO BE DISCUSSING THE 2025-2026 BENEFIT RECOMMENDATIONS THAT GO INTO EFFECT OCTOBER 1ST.

DURING THE PRESENTATION, I'LL GIVE SOME HISTORICAL CONTEXT OF WHAT OCCURRED LAST YEAR WHEN I MET WITH YOU ALL LAST.

WE'LL LOOK AT THE RENEWAL AND THEN TALK ABOUT THE RECOMMENDATIONS FOR NEXT YEAR.

THE FIRST SLIDE THAT WE'RE GOING TO BE LOOKING AT IS JUST GIVING YOU A BENEFITS OVERVIEW OF THE CURRENT PLAN YEAR RIGHT NOW.

AS WE MAY MENTION OF, THAT THE CITY IS CURRENTLY CONTRACTED WITH CIGNA FOR MEDICAL INSURANCE.

THE INSURANCE ANNIVERSARY DATE IS OCTOBER 1ST, SO THAT IS UPCOMING VERY SOON.

YOU MAY REMEMBER LAST YEAR WHEN WE MET, THE CITY HAD CONDUCTED AN RP PROCESS REQUEST FOR PROPOSAL FOR BOTH MEDICAL AND DENTAL INSURANCE.

THE CITY WAS PRIOR CONTRACT WITH ETNA, THAT WOULD HAVE IN PLACE ABOUT FIVE YEARS.

PRIOR TO THAT, THE CITY WAS WITH CIGNA, BUT WENT THROUGH THAT PROCUREMENT PROCESS LAST YEAR, MOVED TO CIGNA WITH A 3.8% DECREASE IN MEDICAL PREMIUM.

REALLY POSITIVE OUTCOME LAST YEAR FOR THE CITY OF BEDFORD.

PART OF THEIR BEST AND FINAL OFFER LAST YEAR WAS THAT THEY PROVIDED THE CITY A RATE CAP, MEANING THAT THE HIGHEST INCREASE THAT THEY COULD PROVIDE THE CITY IN TERMS OF PREMIUM SPEND WAS A 12% INCREASE.

THAT'S REGARDLESS OF PLAN EXPERIENCE.

WHEN WE MET WITH STAFF AT OUR STRATEGY MEETING, LOOKING AT THE UTILIZATION, THE CLAIMS DATA, WE HAD RECOMMENDED TO BUDGET A 12% INCREASE FOR THIS UPCOMING FISCAL YEAR.

THE CITY'S CURRENT LOSS RATIO LOOKING AT PLAN PERFORMANCE.

THAT'S JUST TAKING THE TOTAL CLAIMS DIVIDED BY THE PREMIUM THAT YOU'RE PAYING CIGNA TODAY IS RUNNING AT A 92% LOSS RATIO.

THE TARGET LOSS RATIO UNDER A FULLY INSURED CONTRACT IS ABOUT 80-85%.

THEY PUT ABOUT A 15% MARGIN IN THERE FOR THEIR TAXES.

BEING ABOVE 85% AT THAT 92% MARK, WE WERE ANTICIPATING AN INCREASE OF PREMIUMS THIS YEAR.

NOW, LOOKING AT THIS NEXT SLIDE ON PAGE 3, YOU CAN SEE THIS IS THE CLAIMS FIRST PREMIUM REPORT BROKEN DOWN BY MONTH. WE SHOW THE MONTH.

WE SHOW HOW MANY SUBSCRIBERS ARE ENROLLED IN THE PLAN.

THOSE ARE YOUR ACTIVE EMPLOYEES, OR PRE 65 RETIREES.

[00:30:02]

WE HAVE THE MEDICAL PAY CLAIMS, PRESCRIPTION DRUG CLAIMS, TOTAL PAY CLAIMS, THEN THE PREMIUM THAT YOU'RE PAYING TO CIGNA ON A MONTHLY BASIS, AS WELL AS A LOSS RATIO.

AGAIN, THAT LOSS RATIO IN THE BOTTOM RIGHT HAND SIDE OF THE PAGE IS 92%.

IT'S IMPORTANT TO NOTE THAT THIS CHARTS A LITTLE MISLEADING BECAUSE THIS REPORT DOES NOT INCLUDE RUNOUT CLAIMS WITH ETNA.

WHAT I MEAN BY THAT IS WHEN THE CITY WAS CONTRACTED WITH ETNA, CLAIMS THAT WERE INCURRED IN AUGUST, SEPTEMBER OF LAST YEAR, THERE'S A DELAY.

IT USUALLY TAKES ABOUT 60-90 DAYS TO PROCESS A CLAIM.

THOSE RUNOUT CLAIMS ARE NOT CAPTURED IN THIS CIGNA REPORT.

IF I WAS TO CAPTURE ETNA RUNOUT CLAIMS IN THE REPORT, THAT LOSS RATIO IS ACTUALLY SITTING CLOSER TO 100% FOR THE CURRENT PLAN YEAR.

KNOWING THAT INFORMATION, WE WERE FULLY ANTICIPATING THAT CIGNA WAS GOING TO BE PRESENTING A 12% INCREASE TO PREMIUMS THIS YEAR.

I WOULD ALSO MENTION IF THAT RATE CAP WAS NOT IN PLACE, CIGNA WAS LOOKING AT ABOUT A 30% INCREASE OF PREMIUM.

THAT RATE CAP WAS A NICE SELLING POINT OF THEIR OFFER LAST YEAR.

LOOKING AT THE CURRENT AND RENEWAL BENEFITS FOR THE EMPLOYEES AND PRE 65 RETIREES FOR THE UPCOMING PLAN YEAR, WE'RE NOT RECOMMENDING ANY CHANGES EXCEPT FOR THE HSA PLAN.

THAT'S THE HIGH DEDUCTIBLE HEALTH PLAN.

THAT'S THAT FIRST GREEN COLUMN.

YOU CAN SEE IN RED THAT THE EMPLOYEE'S DEDUCTIBLES FOR INDIVIDUAL IS INCREASING TO $3,300.

IS THAT $3,200 TODAY? FOR FAMILY, IT'S GOING UP TO $6,600 AT $6,400 DAY.

THAT'S DUE TO IRS REGULATIONS, SO THAT HAS TO BE CHANGED THIS YEAR.

BUT THERE ARE NO OTHER BENEFIT DESIGN CHANGES WE'RE RECOMMENDING THIS YEAR.

WE DID A COMPREHENSIVE REVIEW OF BENCHMARKING WITH LIKE CITIES IN THE AREA, AND THE BENEFITS ARE ACTUALLY VERY COMPETITIVE TO LIKE ENTITIES, SO THAT'S VERY POSITIVE TO SEE.

WHEN WE LOOK AT THE PREMIUM RATES FOR THE MEDICAL RENEWAL THAT CIGNA PRESENTED.

WHAT YOU CAN SEE HERE ON THE TOP OF LEFT, YOU'LL SEE MEDICAL BENEFITS, AND YOU WORK DOWN IN THE GREEN.

IT SAYS FINANCIALS. YOU'LL SEE EMPLOYEE ONLY, EMPLOYEE SPOUSE, CHILDREN, AND FAMILY.

YOU WORK YOUR WAY TO THE RIGHT.

YOU CAN SEE HOW MANY EMPLOYEES ARE ENROLLED IN EACH PLAN.

FOR THE HIGH HEALTH PLAN, THERE'S 126 EMPLOYEES ENROLLED FOR THE OAPIN PLAN.

THAT'S A CO-PAY PLAN.

THERE'S 156 EMPLOYEES, 282 TOTAL SUBSCRIBERS ENROLL IN THE PLAN.

IN COLUMNS 1 AND 2, LISTED AT THE TOP, YOU CAN SEE THAT THAT IS THE TOTAL MEDICAL RATES, THE TOTAL ANNUALIZED COST FOR MEDICAL INSURANCE FOR THE CITY OF BEDFORD W CIGNA, FOR THE CURRENT YEAR IS SITTING AT $3.5 MILLION.

IN COLUMNS 3 AND 4, THIS IS THEIR RENEWAL THAT THEY PRESENTED THIS YEAR.

IT'S COMING AT A 11.8% INCREASE.

A LITTLE BIT LESS THAN THAT 12%, THE REASON WAS BECAUSE OF THOSE BENEFIT DESIGN CHANGE TO THE HEALTH PLAN.

AGAIN, THAT WAS IN LINE WITH WHAT WE WERE BUDGETING.

AS I MENTIONED BEFORE, WITHOUT THAT RATE CAP, THE CITY WOULD BE FACING A MUCH LARGER INCREASE.

>> WE DID NOT RECOMMEND AN RFP THIS YEAR.

THE REASON BEING IS IF THE CITY WAS TO ISSUE AN RP, THAT RATE CAP WOULD HAVE BEEN REMOVED, AND IT WOULD HAVE BEEN SUBJECT TO THAT 30% INCREASE.

ANOTHER THING I NOTE ON THIS PAGE AT THE VERY BOTTOM RIGHT-HAND SIDE, PART OF THEIR BEST AND FINAL OFFER THAT CIGNA PROVIDED WAS A $25,000 WELLNESS FUND, SO THE CITY CAN USE THAT FOR WELLNESS ACTIVITIES, EVENTS.

WE HAVE A WELLNESS CONSULTANT THAT WE WORK WITH STAFF WITH TO UTILIZE THOSE FUNDS.

AS WELL AS A $10,000 COMMUNICATION FUND, AS WELL.

SO THE $35,000 IN FUNDS THAT ARE PROVIDED TO THE CITY OF BEDFORD FOR NEXT PLANER, WHICH MATCHES WHAT'S CURRENTLY IN FORCE FOR THE CURRENT YEAR.

WHAT WE'RE SHOWING ON THIS NEXT SLIDE IS THE CURRENT CONTRIBUTION MAKEUP.

WHAT YOU'LL SEE HERE ON THE TOP IS THE YUTAL HEALTH PLAN, AND THE BOTTOM CHART IS THE CO-PAY PLAN.

I THINK THE THING YOU WANT TO FOCUS ON THE MOST HERE IS LOOKING AT THE VERY RIGHT-HAND SIDE OF THE PAGE, YOU'LL SEE THE EMPLOYEE COST.

THAT'S WHAT'S BEING DEDUCTED OUT OF EMPLOYEE'S PAYCHECK.

SO IF THERE'S AN EMPLOYEE ONLY ENROLLED IN THE HYDUCT HEALTH PLAN, IT'S AT NO COST TO THE MEMBER.

SO $0, YOU'LL SEE FOR EMPLOYEE PLUS SPOUSE, $220 FOR THE HYDUCT HEALTH PLAN, 154, $350, AND YOU'LL SEE THE COST FOR THE CO-PAY PLAN LISTED BELOW.

IN THE VERY BOTTOM PART OF THIS PAGE, YOU'LL SEE THAT WHERE IT SAYS TOTAL CONTRIBUTIONS.

YOU'LL SEE THERE'S 282 TOTAL EMPLOYEES, AND THEN WHAT'S THE TOTAL MEDICAL COSTS? A $3.6 MILLION. AS YOU MAY REMEMBER, I SAID 3.5 ORIGINALLY, BUT IT'S HIGHER BECAUSE THE CITY DOES PROVIDE HSA CONTRIBUTIONS TO STAFF.

THE CITY IS FUNDING 86.7% OF TOTAL HEALTHCARE SPEND.

OUR BENCHMARKS DAY ON OUR BOOK OF BUSINESS IS ABOUT 84%.

SO YOU'RE A LITTLE BIT ABOVE BENCHMARK DAY, WHICH IS POSITIVE TO SEE.

NOW, IF YOU LOOK ON THE NEXT SLIDE, WHAT WE'RE SHOWING HERE ARE THE PROPOSED CONTRIBUTIONS, AND SOMETHING I WOULD NOTE ON THIS PAGE IS THAT THE CITY HAS NOT PASSED A PREMIUM INCREASE ONTO EMPLOYEES.

IT'S BEEN OVER SEVEN YEARS.

IF YOU GO TO A LOT OF YOUR OTHER CITIES IN THE AREA, THEY'RE INCREASING PREMIUMS ANNUALLY.

SO WHAT THAT'S TELLING US IS THAT THE CITY HAS HAD

[00:35:02]

VERY POSITIVE RENEWALS THE LAST SEVEN YEARS, VERY FAVORABLE RESULTS.

I'M TALKING WITH STAFF, THIS YEAR, THERE IS GOING TO BE A COST INCREASE PASSED OFF IN TWO EMPLOYEES.

SO, LOOKING AT THAT TOP RIGHT-HAND COLUMN AGAIN, YOU WILL SEE WHAT THE MONTHLY DIFFERENCES THAT THE EMPLOYEE WILL BE FACING.

SO AS I MENTIONED BEFORE, TODAY, THAT HSA PLAN IS AT A $0 COST FOR 2024 2025, 2025, 2026, THAT COST WILL INCREASE TO $20 A MONTH.

AND THEN YOU'LL SEE $30 FOR SPOUSE CHILDREN FAMILY.

THEN YOU'LL SEE THE CO-PAY PLAN IS SET AT $40, 44, 60, AND 90.

SO THERE IS SOME COST SHIFTING BACK ONTO THE EMPLOYEES.

THAT'S PRETTY COMMON TO SEE WITH OTHER CITIES THAT I'M WORKING WITH TODAY, THAT THERE ARE SOME COST SHARE PASSED OFF.

NOW, WITH THAT CHANGE, YOU'LL LOOK AT THE BOTTOM CHART AGAIN, WHERE IT SAYS THE TOTAL CONTRIBUTIONS, ALL PLANS AT THE BOTTOM, YOU'LL GO TO THE CITY CONTRIBUTION PERCENTAGE.

YOU'RE 84.6%, SO STILL VERY MUCH IN LINE WITH MARKET NORMS, EVEN WITH THE INCREASE TO PREMIUMS FOR EMPLOYEES THIS YEAR.

SO FINALLY, JUST LOOKING AT OUR BENEFIT RECOMMENDATIONS, YOU'LL SEE THAT WE'RE RECOMMENDING TO RENEW WITH CIGNA FOR THE 25 2026 PLAN YEAR, THE TOTAL INCREASE TO COST IS OVER $413,000.

PART OF THEIR BEST AND FINAL OFFER, AGAIN, IS THE WELLNESS FUNDS, THE COMMUNICATION FUNDS.

THERE IS A PATIENT ADVOCACY SERVICE THROUGH CIGNA ONE GUIDE, WHICH IS CURRENTLY IN FORCE TODAY.

AND THERE'S ALSO AN EMPLOYEE SYSTEMS PROGRAM THAT IS OFFERED TO HELP WITH MENTAL HEALTH RESOURCES FOR EMPLOYEES.

TOP OF THAT, THE CITY IS ACTUALLY IMPLEMENTING A NEW BENEFIT FOR EMPLOYEES HERE CALLED THE HUB CALL CENTER.

IT'S ANOTHER PATIENT ADVOCACY HOTLINE.

SO IF EMPLOYEES HAVE QUESTIONS OVER BILLING, THEIR EOBS, SCHEDULING, AND APPOINTMENTS, WE CAN HELP EMPLOYEES WITH THOSE ISSUES.

THE COST FOR THIS SERVICE IS SET AT $1 PER EMPLOYEE PER MONTH.

THE CITY IS GOING TO BE UTILIZING THE CIGNA COMMUNICATION FUNDS OF $10,000 TO HELP PAY FOR THAT CALL CENTER.

SO THERE'S NO COST TO THE CITY BECAUSE CIGNA IS ESSENTIALLY PAYING FOR THAT.

YOU'LL SEE OTHER LINES OF COVERAGE THAT ARE ALSO OFFERED DENTAL VISION, LIFE DISABILITY, EMPLOYEES PROGRAM.

THESE WILL ALL BE RENEWING NEXT YEAR WITH NO CHANGES.

WE DID NOT HAVE TO DO AN RP ON ANY OF THESE OTHER LINES.

BUT I WILL SAY NOW THAT THE RATE CAP FOR NEXT YEAR IS GOING TO BE OFF THE TABLE, WE MAY BE EVALUATING AN RP FOR 26 27.

SO, LOOKING DOWN THE ROAD, THERE MAY BE AN RP IN THE FUTURE.

BUT OVERALL, SPEAKING WITH STAFF, THE MOVE FROM ETNA TO CIGNA HAS BEEN VERY POSITIVE, LIMITED DISRUPTION PART OF THAT.

SO I THINK STAFF HAS BEEN VERY HAPPY WITH THAT CHANGE THIS YEAR.

SO THESE ARE OTHER RENEWING POLICIES.

THE CITY ALSO OFFERS A FLEXIBLE SPENDING ACCOUNT, AS WELL AS HSA ADMINISTRATION THROUGH OPTUM, THOSE AUTOMATICALLY RENEW.

THAT'S ALL I HAVE. I'D BE HAPPY TO ANSWER ANY QUESTIONS YOU.

>> VERY GOOD. THANK YOU FOR THAT.

SO FIRST OF ALL, I THINK THE SWITCH TO YOUR POINT.

THAT WAS A GOOD MOVE ON OUR PART, AND BETTER MOVE IS CAPPING IT AT THAT 20%, BECAUSE FROM WHAT IT LOOKS LIKE, HAVING A LOSS RATIO THAT HIGH, THAT WOULD HAVE RISEN EXPONENTIALLY AT BIT MORE.

THAT BEING SAID, THIS CAP ONLY LASTS A YEAR.

>> YES, SIR.

>> SO WE ANTICIPATE NEXT YEAR, PROBABLY HAVING TO DO FORBID [OVERLAPPING].

>> POSSIBLY AN RP. OF COURSE, WE LOOK AT THE UTILIZATION.

SO WE MEET WITH STAFF THROUGHOUT THE YEAR, WE'RE TRACKING UTILIZATION.

IF WE SEE A TREND WHERE UTILIZATION IS NOT LOOKING FAVORABLE, WE WILL START THAT PROCUREMENT PROCESS EARLY.

DO THE RP WORK WITH STAFF, AND THEN COME AND PRESENT OUR FINDINGS TO YOU ALL.

BUT AGAIN, LOOKING AT THE UTILIZATION, THERE WAS ONE MONTH THAT WAS ABOUT A 211% LOSS RATIO.

EVERYTHING ELSE LOOK PRETTY STRONG THROUGH THE YEAR.

SO WE'RE HOPING THAT THAT WAS JUST A ONE-OFF AND THINGS WILL IMPROVE.

>> IMPROVE THERE ON.

I THINK THAT'S WHAT EVERYONE'S HOPING.

SO WE CAN GO OUT AND HOPEFULLY REDUCE THOSE RATES.

>> RIGHT.

>> VERY GOOD. QUESTIONS OVER PLANS PRESENTED.

YES. MY PRO TEM DAWKINS.

>> THANKS, MR. MYER. SO WITH THE WELLNESS FUNDS, HAVE WE'VE HAD THESE BEFORE?

>> YES, THEY'RE CURRENTLY IN FORCE TODAY IN PRIOR YEARS, THEY'VE BEEN FORCED AS WELL.

SO IT'S A USER TO LOSE IT, SO WE HAVE TO USE THOSE FUNDS BY PLAN U ENDS.

SO THEY DO NOT ROLL OVER EVERY YEAR.

SO WE'VE BEEN WORKING WITH STAFF TO TRY AND MAXIMIZE THOSE FUNDS.

I KNOW WE'VE HAD HEALTH FAIRS BEFORE WE'VE BEEN LOSING SOME OF THE FUNDS FOR THAT.

SO WE DO HAVE A PLAN IN PLACE TO USE THAT.

>> I THINK THAT WAS MY NEXT QUESTION OF, WHAT THINGS HAVE WE DONE FOR THE FUNDS? IF THERE'S SOME INCENTIVES.

WELL, MY EMPLOYER HAS HEALTHY POINTS, SO THEY ENCOURAGE EMPLOYEES TO WORK OUT AND THINGS LIKE THAT.

AND SO WE GET IN A DRAWING IF YOU CAN DEMONSTRATE THAT.

AND SO I DIDN'T KNOW IF THE CITY HAD SOMETHING SIMILAR USING THESE WELLNESS FUNDS.

>> YOU SURE IF YOU WANT TO SPEAK ON THAT?

>> SO RIGHT NOW,

[00:40:01]

WE'RE SCHEDULING A COMPANY TO COME OUT AND DO BIOMETRIC SCREENINGS.

CAUSE AND THAT INFORMATION WILL BE SENT TO CIGNA AS WELL, AND THAT WILL HELP US PINPOINT PEOPLE THAT HAVE ISSUES THAT NEED TO BE ADDRESSED, AND THEY CAN REACH OUT TO HIM AND HELP WITH THAT.

LIKE HE SAID, WE'VE DONE THE HEALTH FARE.

WE ARE LOOKING INTO A WELLNESS PROGRAM, BUT HONESTLY, $25,000 DOESN'T GO THAT FAR.

SO WE HAVE TO BE REALLY CAREFUL WITH WHAT WE USE IT FOR.

BUT WE ARE LOOKING INTO THINGS LIKE THAT THAT AREN'T REAL EXPENSIVE THAT WE CAN DO.

I KNOW, THE COMMUNICATION FUNDS THAT WE HAVE, WE'RE USING THOSE THIS YEAR TO HELP MAIL OUT POSTCARDS TO THE HOMES SO THAT REACHES SPOUSES, AND THEY'RE GETTING INFORMATION ON OUR GENERAL SESSION SO THAT THEY CAN COME AND, YOU KNOW, BE MORE EDUCATED ON THAT.

AND THEN WE'RE ALSO PINPOINTING THE DIFFERENCE BETWEEN GOING TO AN EMERGENCY ROOM VERSUS A CLINIC VERSUS YOUR PRIMARY CARE PHYSICIAN TO TRY AND GET PEOPLE TO GO TO OR EMPLOYEES TO GO TO THE LESS EXPENSIVE CARE FACILITIES.

SO THAT'S WHAT WE HAVE GOING SO FAR.

>> THANK YOU SO MUCH.

>> VERY GOOD. ANY OTHER ADDITIONAL QUESTIONS COUNSEL RECEIVES?

>> THANK YOU, MAYOR. SO THE DOLLAR PER EMPLOYEE MONTH ON THE HUB IS WHETHER OR NOT THEY USE IT? IS THAT CHARGED NO MATTER WHAT?

>> THAT'S CORRECT. YES, SIR.

>> SO WHETHER OR NOT THEY CALL IN AND USE THAT BENEFIT, IT'S STILL CHARGED?

>> YES.

>> ANY ADDITIONAL QUESTIONS? DOESN'T LOOK LIKE IT. ALL RIGHT. THANK YOU SO MUCH.

>> THANK YOU. APPRECIATE.

>> NEXT UP ON THE AGENDA, ITEM NUMBER 9.

>> CALL A PUBLIC HEARING ON THE OH, SORRY, RESOLUTION.

SORRY. I WAS READY TO MOVE RIGHT ALONG. SORRY ABOUT THAT.

[LAUGHTER] SO I WANT TO ENTERTAIN A MOTION BY COUNCILMAN GEARY.

MOVES TO APPROVE SECOND.

SECOND BY COUNCIL MEMBER SEBO.

LET'S GO AND VOTE. I FELT LIKE WE DIDN'T HAVE MUCH OF AN OPTION, SO.

[LAUGHTER] THERE IT IS. ALL RIGHT.

ALL RIGHT, SO THAT PASSES AGAIN, NIMOUSLY.

THANK YOU, COUNSEL. THANK YOU, STAFF. NOW, WE WILL MOVE ON.

[9. Call a public hearing on the proposed FY 2025-2026 budget to be held on September 9, 2025 at 6:00 p.m. in the City Hall Council Chambers.]

ITEM NUMBER NINE. CALL A PUBLIC HEARING ON THE PROPOSED FISCAL YEAR 2025, 2026 BUDGET TO BE HELD ON SEPTEMBER 9, 2025, AT 6:00 P.M.

IN THE CITY HALL COUNCIL CHAMBERS HERE.

GIVE YOU FINANCE DIRECTOR BRADY OLSON.

>> MAY AND COUNSEL. THERE ARE MANY NOTICES THAT WE MUST PUBLISH TO LET OUR CITIZENS KNOW THAT A BUDGET IS GOING TO HAPPEN.

SO WE WOULD LIKE YOUR AUTHORITY TO DO THAT.

WE'RE PROPOSING SEPTEMBER 9, NORMAL MEETING FOR THE PUBLIC HEARING ON OUR BUDGET.

>> ITEM NUMBER 10.

[LAUGHTER] MAKE A MOTION. ALL RIGHT.

SO WE HAVE MOVED TO APPROVE BY COUNCIL MEMBER FARCO.

A SECOND BY PRO TEM DAWKINS.

LET'S GO AHEAD AND VOTE ON THIS ONE.

AND THAT PASSES UNANIMOUSLY.

THANK YOU, COUNSEL, FOR THAT ONE. ITEM NUMBER 10.

CONSIDER A PROPOSED TAX RATE AND SET THE PUBLIC HEARING ON THE PROPOSED TAX RATE IF REQUIRED.

GIVE YOU FINANCE DIRECTOR OF BRADY OLSON.

>> THANK YOU, MARY COUNSEL.

WE ARE ALSO PROPOSING A TAX RATE TO PAY FOR THAT BUDGET.

RIGHT NOW, YOU ARE AUTHORIZING THE MAXIMUM TAX RATE THAT YOU CAN CONSIDER AT THAT MEETING ON THE NINTH.

YOU'RE NOT ADOPTING THIS TAX RATE.

YOU'RE NOT DOING ANYTHING BESIDES LETTING THE PUBLIC KNOW.

THIS IS THE MAXIMUM NUMBER THAT YOU'RE GOING TO CONSIDER.

AND WE ARE PROPOSING THE VOTER APPROVAL RATE, WHICH IS THE RATE NEEDED TO FUND OUR BUDGET.

>> SO NOW WE HAVE SOME QUESTIONS I'VE BEEN BROUGHT UP DUE TO THAT.

I KNOW THERE'S BEEN SOME DISCUSSIONS BY FROM FELLOW COUNCIL MEMBERS ABOUT THE TIMER'S NON-RETROACTIVE COLA.

CAN WE TALK ABOUT THAT? SO THAT WE'RE TUNING IN AND DID NOT TUNE IN, WHAT THAT IS.

WHAT DOES THAT ENTAIL? WHAT IS THAT BENEFIT THAT WE'RE SEEKING TO INCLUDE IN THIS BUDGET?

>> SURE. RIGHT NOW, WHENEVER A CITY A BEDFORD EMPLOYEE RETIRES, THEY GET AN AMOUNT SET ON THAT DATE, AND THEY GET THE EXACT SAME AMOUNT EVERY MONTH.

GOING FORWARD. IF INFLATION GOES UP 10%, THEY STILL GET THE SAME AMOUNT.

UNDER THE PROPOSED 30% COLA PLAN, WE WOULD GET A 30% OF INFLATION INCREASE EACH MONTH.

SO IF INFLATION GOES UP 10%, THE EMPLOYEE WOULD GET A 3% INCREASE IN THEIR RETIREMENT BENEFITS.

THEN THAT GOES YEAR AFTER YEAR.

THAT'S THE MOST AFFORDABLE OPTION THAT WAS ON THE TABLE IN ORDER TO GIVE OUR EMPLOYEES AND RETIREES ANY BENEFIT AND HEDGE OF PROTECTION AGAINST INFLATION IN THE FUTURE.

THERE IS A 50% OPTION ON THE TABLE,

[00:45:01]

WHICH WOULD ALLOW 50% OF INFLATION TO BE ADDED TO AN EMPLOYEE'S BENEFIT.

THAT'S GOING TO COST US ABOUT $263,000 ANNUALLY.

THIS WOULD JUST BE A SIMILAR COST EVERY YEAR GOING FORWARD TO MAKE SURE THAT WE WERE TAKING CARE OF OUR EMPLOYEES.

>> IS THE 263,000, YOU SAID?

>> YES.

>> THAT WOULD BE IN ADDITION TO THE ALREADY.

>> WAS JUST A HAIR UNDER 500,000?

>> YEAH.

>> YES.

>> SO THE 497. SO THAT'S IN ADDITION TO TOTAL COMBINED OF ABOUT 700. THE CHANGE.

>> 760.

>> 760. YEAH. REAL QUICK, THOUGH, HOW DID WE COME UPON THIS 263,000?

>> THERE ARE OPTIONS THAT WE COULD USE TO MAKE IT WORK THIS NEXT YEAR.

THE STRIKER, EMS EQUIPMENT REPLACEMENT THAT WE'RE MOVING FORWARD WITH, FIRE.

WE DO HAVE SOME UNSPENT BOND PROCEEDS THAT WE COULD USE TO FUND THE FIRST YEAR OF THAT, AND THAT WOULD GIVE US A YEAR TO FIND A MORE PERMANENT SOLUTION IN ORDER TO PAY FOR THOSE COSTS.

THERE'S ALSO SOME PROPOSED REDUCTIONS IN FIRE OVERTIME THAT WE COULD CONSIDER TO ALSO MAKE UP THAT DIFFERENCE.

>> SO WE'RE CONSIDERING REDUCTIONS IN OVERTIME JUST TO ACCOMMODATE THIS REQUEST.

AND WHY IS IT PERTINENT THAT WE HAVE THIS REQUEST?

>> THIS IS THE LAST YEAR THAT WE CAN DO THIS AFFORDABLE OPTION WITH TMRS. THE STATE PASSED A LAW THAT EXTENDED A THREE-YEAR WINDOW THAT WINDOW CLOSES ON DECEMBER 31.

SO IF WE DO WANT TO GIVE THIS OPTION TO OUR EMPLOYEES, THIS IS THE LAST TIME WE CAN DO IT.

OTHERWISE, WE HAVE TO GO FOR A MORE EXPENSIVE OPTION, WHICH WOULD LIKELY REQUIRE GOING TO A TAX RATE INCREASE.

>> GOT YOU. LOOKING AT THIS.

THIS, WE HAD OUR BUDGET HEARING, OBVIOUSLY, FIVE DAYS AGO, WHERE WE ASKED NUMEROUS QUESTIONS, WENT THROUGH THE WHOLE GAMBIT HERE.

WITH THAT, BECAUSE OF THE TARAN APPRAISAL DISTRICT FINANCE PLAN OF FREEZING EVERYBODY'S PROPERTY VALUES.

JUST FOR RECORD, WE SAW BASICALLY ZERO GROWTH IN REVENUE.

SO DUE TO THAT, THAT HAD US HAVE TO RAISE THE RATE, AT LEAST $0.01, JUST TO HAVE A NO NEW REVENUE RATE SO WE CAN CONTINUE KEEPING THE LIGHTS ON, PROVIDING THE SERVICES THAT WE PROVIDE.

GOING FORWARD, THEN WE ALSO HAVE IN THIS BUDGET, COST OF LIVING ADJUSTMENTS FOR CURRENT EMPLOYEES, 3% PLUS THE STEP PLAN FOR EMERGENCY SERVICES, FIRE, POLICE, AND SO FORTH.

THAT RATE THERE IS AN ADDITIONAL BY MY CALCULATIONS, AND CORRECT ME IF I'M WRONG.

I KNOW YOUR MATH IS GOOD. ABOUT ANOTHER CENT AND ONE AND ONE-TENTH CENT.

>>THAT'S ABOUT RIGHT.

>> ABOUT RIGHT, SOMEWHERE AROUND THERE.

SO $0.02.

AND THEN WITH THIS ADDITIONAL COST, THIS IS THE OTHER CENT PIECE, ROUGHLY,.

>> ROUGHLY.

>> IS THIS PIECE?

>> YES

>> I'LL BE FRANK. AFTER OUR BUDGET HEARING, AFTER LOOKING THROUGH ALL OF THIS, I HAVE CONCERNS.

IT'S A ROUGH YEAR.

I DON'T GOING INTO THE VOTERS.

I DON'T LIKE GO TO VOTERS AND SAYING, HEY, WE'RE RAISING YOUR TAXES THREE CENTS WHEN IN PREVIOUS YEARS, WE HAVE KEPT IT STABLE.

FOR MANY YEARS, OR WE'VE REDUCED IT IN THE PAST.

I HATE THAT WE WERE PUT IN THIS POSITION I CAN SWALLOW GOING TO THE NO NEW REVENUE RATE BECAUSE WE HAVE TO PROVIDE SERVICES WE'RE NOT CUTTING ANYTHING.

WE'RE MOVING FORWARD WE'RE DOING EVERYTHING THAT WE NEED TO DO.

WHEN IT COMES TO GIVING RAISES TO OUR EMPLOYEES, THAT RATE THERE? ABSOLUTELY. OUR EMPLOYEES WORK HARD EVERY SINGLE DAY ON BEHALF OF THE RESIDENTS THEY DESERVE A RAISE.

EVERYONE DESERVES A RAISE.

THAT RATE THERE IS EASY TO EXPLAIN BUT GOING TO ANOTHER CENT FOR THIS AND COMMITTING NOW IT'S UP TO 760,000 IF WE DO A 50% NON RETROACTIVE COLA, THAT'S GOING TO BE IN PERPETUITY, CORRECT? GOING FORWARD IN OUR BUDGET, AROUND 760,000.

>> IT WOULD BE AROUND THAT AREA.

>> DO YOU EVEN KNOW HOW MUCH THAT'S GOING TO REALLY AFFECT THE RETIREES? IT'S INDEPENDENT BASED ON [OVERLAPPING]

>> IT'S BASED ON HOW MUCH THEY'RE IN THE SYSTEM.

>> HOW MUCH THEY ARE IN THE SYSTEM.

IT CAME AT A WRONG TIME.

IT REALLY DID IN MY MIND.

IT CAME AT A REALLY BAD TIME GOING FORWARD.

LOOKING AT THAT 760,000, I HAVE ISSUES WITH THIS.

ONLY FOR THE FACT THAT WE NOW HAVE FOUND MONEY, 263,000 IN ORDER TO ACCOMMODATE THE 50%,

[00:50:06]

WHEREAS BEFORE IT WAS 30%.

STILL PRETTY LOUSY, AS SOME COUNCIL MEMBERS UP HERE HAS MENTIONED, BUT NOW WE'RE INCREASING IT EVEN MORE, AND WE FOUND THE MONEY.

I DON'T KNOW HOW I GO TO THE RESIDENTS AND TELL THEM THIS WHEN WE HAD THE ABILITY TO MAYBE SCALE IT BACK, THE TAX RATE, SCALE IT BACK A LITTLE BIT.

BUT NOW WE'RE GOING TO THE VOTER APPROVAL RATE.

BY PRINCIPLE, I HAVE ISSUES WITH THAT. I DO.

I HAVE ISSUES WITH GOING TO THE VOTER APPROVAL RATE MERELY BECAUSE OF THAT.

I KNOW IT'S A TOUGH SITUATION, BUT AGAIN, WE JUST FOUND MORE MONEY.

I CAN THINK OF, QUITE FRANKLY, MORE THINGS TO DO WITH $760,000 THAT WOULD DIRECTLY, AND I MEAN, DIRECTLY BENEFIT OUR RESIDENTS.

WE COULD PUT SIGN ON BONUSES FOR POLICE OFFICERS, FILLING THE AVERAGE VACANCY OF ABOUT SEVEN VACANCIES THAT WE HAVE IN OUR POLICE DEPARTMENT.

WE COULD DO INCENTIVES FOR PUBLIC WORKS, WHICH IS ONLY AT HALF FILLED RIGHT NOW FOR WATER, SEWER.

WE COULD INCREASE PAY FOR OUR FIRE AND POLICE TO MAKE IT MORE COMPETITIVE.

WE COULD ALLOCATE MORE FOR NEIGHBORHOOD SERVICES AND ABATEMENTS, CLEANING UP OUR CITY.

WHAT ABOUT LOWERING YMCA COSTS FOR CITY RESIDENTS AND SENIOR DISCOUNTS.

ALLOCATING MORE ECONOMIC DEVELOPMENT WITHIN OUR SHOPPING CENTERS, ALLOCATING MORE MONEY TO THAT SO WE CAN CLEAN UP OUR SHOPPING CENTERS AND OFFER MORE INCENTIVES TO THOSE OWNERS.

WHAT ABOUT THAT NEW AMBULANCE THAT NEEDS TO BE PURCHASED NEXT YEAR BECAUSE WE'VE ALREADY REMOUNTED IT TWICE ALREADY.

WHAT ABOUT SIDEWALK REPAIRS? THERE'S A LIST GOES ON AND ON.

THERE'S A LOT THAT COULD BE USED WITH THAT MONEY THAT WOULD DIRECTLY BENEFIT THE RESIDENTS.

IT'S HARD FOR ME TO STAND UP HERE AND GO TO THE VOTERS AND SAY, WE'RE RAISING YOUR RATE THREE CENTS TO ACCOMMODATE THAT.

I DON'T KNOW HOW I HAVEN'T TALKED TO ANYBODY UP HERE.

IT'S PROBABLY A SHOCK TO STAFF.

IT'S PROBABLY A SHOCK TO MY FELLOW COUNCIL MEMBERS UP HERE.

WITH THAT IS WHERE I STAND RIGHT NOW, IT IS HARD FOR ME TO ACCEPT A THREE CENT INCREASE AT THIS GIVEN TIME. COUNCILMEMBER FARCO.

>> THANK YOU, MR. MAYOR. I WAS THE ONE WHO ASKED STAFF TO GO BACK AND LOOK AT THIS.

OUR MOST PRECIOUS ASSET AT THIS CITY ARE OUR EMPLOYEES.

WE NEED TO TAKE CARE OF THEM, NOT ONLY THE ONES WE HAVE NOW, BUT THE ONES THAT ARE GOING TO RETIRE IN THE FUTURE.

THIS WAS A ONE SHOT OPPORTUNITY THAT WE DIDN'T HAVE TO GO BACK AND PAY THIS COLA RETROACTIVE, AND IT WAS THE CHEAPEST WAY TO TAKE CARE OF SOME EMPLOYEES NOW TO MAKE US A MORE OPPORTUNITY FOR EMPLOYEES TO COME IN TO GIVE CONTINUOUS BENEFITS WITH THAT.

WE WERE TALKING ABOUT BUYING A STREET SWEEPER AND THINGS LIKE THAT TO CLEAN UP OUR CITY.

OUR EMPLOYEES CLEAN UP OUR CITY THEY TAKE CARE OF US, THEY DO THE THINGS THEY NEED TO DO.

WE HAVE NOT TAKEN CARE OF THEM IN THE PAST AND YOU ALWAYS TALK ABOUT WHAT PAST COUNCILS HAVEN'T DONE.

THIS COUNCIL HAS THE OPPORTUNITY TO CORRECT SOMETHING.

THE ONLY REASON I DID WAS LAST THURSDAY NIGHT AFTER OUR MEETING, COUNCILWOMAN SABOL HAD SAID SOMETHING THAT, 30%, THAT'S NOTHING AND I WAS LIKE, IT GOT ME ALL NIGHT.

I WAS THINKING, WHAT DO WE NEED TO DO? CAN WE MAKE THAT HAPPEN? YOU KNOW WHAT? I DON'T LIKE TAX INCREASES, BUT WHEN IT COMES TO TAKING CARE OF OUR EMPLOYEES AND MAKING SURE THAT WE'RE COMPETITIVE IN THIS MARKET TO GET THE BEST EMPLOYEES, BECAUSE OUR EMPLOYEES DO MORE WITH LESS THAN ANY OTHER CITY.

YOU KNOW WHAT? SOME PEOPLE CAN DO WITHOUT SIDEWALKS.

SOME PEOPLE CAN DO WITH THINGS.

WE CANNOT DO WITHOUT GOOD EMPLOYEES, AND I WAS THE ONE THAT ASKED STAFF TO LOOK AT THAT.

>> COUNCIL DONOVAN BRANDON.

>> THANK YOU, MR. MAYOR. THIS IS COMPLICATED, AND WHEN I RAN, I SAID, I WILL SUPPORT POLICE AND FIRE.

I DIDN'T SAY I WOULD SUPPORT SIDEWALKS, ALTHOUGH I THINK THAT'S GREAT.

I WANT TO DO THE BEST BY OUR EMPLOYEES TO ATTRACT AND RETAIN.

WHEN YOU HAVE FREQUENT EMPLOYEE TURNOVER,

[00:55:05]

THAT'S NOT WITHOUT COST.

THERE'S COST ASSOCIATED WITH HIRING AND TRAINING AND RIGHT NOW, I THINK WE HAVE SUCH A GREAT STUFF.

I'VE BEEN WATCHING, AND I THINK WE'VE BEEN HEADED IN THE RIGHT DIRECTION, AND I WANT TO RETAIN THE PEOPLE WE HAVE.

I DO THINK AND I'M STRUGGLING WITH THIS BECAUSE IT'S NOT SO BLACK AND WHITE THERE'S AREAS OF GRAY.

I THINK THERE IS A DIRECT BENEFIT TO THE RESIDENTS OF OUR CITY TO RETAIN THE WONDERFUL STAFF WE HAVE.

I DO THINK YOU RAISE TAXES TO PAY FOR THINGS YOU VALUE.

I'M NOT SAYING ANYONE DOESN'T VALUE WE ALL VALUE OUR POLICE OR FIRE, OUR EMPLOYEES WHO WORK IN THIS BUILDING BUT IT'S REALLY IMPORTANT TO KEEP THE BEST.

I KNOW IN THE PAST THAT WE HAD TROUBLE RETAINING THE PEOPLE WE HAD.

I THINK IT'S IMPORTANT FOR US TO INVEST IN OUR EMPLOYEES THE BEST WE CAN AND I KNOW THERE ARE PEOPLE WHO LOOK AT JOBS AND LOOK AT BENEFITS AND THIS IS A BENEFIT WE CAN GIVE TO OUR EMPLOYEES.

BUT AGAIN, I THINK EVERYONE HERE HAS THE SAME GOAL IT'S JUST HOW DO WE GET TO THAT SAME GOAL. THANK YOU.

>> GOOD. COUNCILMEMBER GAGLIARDI.

>> HELLO. CAN YOU HEAR ME? THANK YOU, MAYOR KOGAN.

IT IS AN UNFORTUNATE CIRCUMSTANCE NOBODY WANTS TO RAISE TAXES.

I GOT ON COUNCIL BACK IN 2020, AND EVERY DAY PEOPLE COME INTO THE STORE AND THEY TELL ME HOW GREAT THE CITY'S RUNNING AND OPERATING.

WE'VE TAKEN LEAPS AND BOUNDS IN THE SHORT 5.5 YEARS? IN SOME DECISIONS THAT WERE MADE BACK IN THE EARLY TO MID 2000S, WHERE THAT THEN PREVENTED ADOPTING TAX RATES THAT WERE NECESSARY TO MAINTAIN A CITY THAT EVERYBODY WANTS TO LIVE IN, A DESIRABLE CITY.

WE ALL PICKED BEDFORD BECAUSE IT'S A BEAUTIFUL CITY.

ONE OF THE WAYS AND WE'RE ALSO THIS IS GOING TO BE ON A TANGENT, AND I APOLOGIZE, BUT WE'RE IN A UNIQUE SITUATION BECAUSE WE'RE BETWEEN TWO VERY LARGE CITIES.

WE'RE NOT INNER CITY BUT PEOPLE ARE GOING TO FRISCO AND THEY'RE GOING TO MCKINNEY, AND THEY PUT ALL THESE THINGS WE'RE IN A UNIQUE SITUATION WHERE WE'RE BUILT OUT, AND WE HAVE TO HAVE THE BEST STAFF POSSIBLE TO HELP US WITH THAT.

OVER MY TIME ON COUNCIL, I HAVE SEEN SOME OF THE BEST STAFF COME IN.

THIS IS STAFF AND NOT SAYING STAFF THAT WE'VE HAD PREVIOUS, EVERYBODY'S GREAT, BUT WE'VE PULLED IN A LOT OF TOP LEVEL PEOPLE THAT ARE HELPING POSITION US AND DO THINGS THAT WE NEVER THOUGHT WERE POSSIBLE.

WE'RE GOING TO GET A NEW CENTRAL FIRE STATION.

A LOT OF GREAT THINGS.

MY FEAR IS THAT IF WE'RE TOO SAD, I DON'T WANT TO USE THE WORD SHORT SIGHTED.

IF WE HALT SOME OF THE PROGRESS, I JUST DON'T WANT TO SEE STUMBLE LIKE WE DID OVER A DECADE AGO.

I DON'T WANT TO SEE US HAVING TO CLOSE FACILITIES.

PEOPLE ARE MOVING HERE BECAUSE OF HOW BEAUTIFUL IT IS AND THE SERVICES WE PROVIDE AND I'D LIKE TO CONTINUE TO DO SO.

HOPEFULLY, WHEN THE HOUSES GET REAPPRAISED, THERE CAN BE READJUSTMENTS TO WHERE THAT RATE WOULD GO BACK DOWN.

IT'S LIKE WE'RE FOLLOWING WE'RE JUST IN A VERY UNFORTUNATE SPOT IN THE CYCLE OF THINGS.

THERE'S ALWAYS GOING TO BE THINGS WE CAN DO WHEN I GOT ON COUNCIL BACK IN 2020 YOU WERE THERE TOO.

IF YOU WOULD HAVE SAID WE DID WE PUT SHADE STRUCTURES OVER, THAT WOULD HAVE BEEN INSANE.

HALF THE STUFF WE'VE DONE IS INCREDIBLE.

I WANT TO SEE THAT MOMENTUM CARRY FORWARD.

I WANT TO SAY WITH THE BUDGET THAT WAS PRESENTED TO US,

[01:00:03]

IT WAS INCREDIBLY PROFESSIONAL THEY WENT OVER IT WITH THE FINE TOOTH COMB TRYING TO ALTHOUGH THEY DID FIND A SPARE 200 AND SOMETHING THOUSAND BUT IT'S A CREATIVE TEAM WE HAVE.

BUT I DON'T WANT TO BREAK THAT MOMENTUM BECAUSE IF WE LOOK ON THE SENIORITY ON EMPLOYEES, WE HAVE A LOT OF VERY LONG TERM EMPLOYEES, BUT WE'RE MISSING A BIG CHUNK.

THAT'S BECAUSE OF THAT TURNOVER THAT'S BEEN AFFECTING US.

IF YOU'RE SHOPPING FOR A JOB, ONE OF THE THINGS YOU LOOK AT IS WHAT'S MY RETIREMENT GO TO LOOK LIKE? YOU LOOK WHO HAS A MATCH? WHO DOES THIS OR THAT? WHEN YOU'RE IN THAT POSITION.

I WANT TO KEEP BRINGING IN THE BEST WE CAN.

>> THANK YOU. MAYOR. APPRECIATE THOSE COMMENTS.

I THINK WE ALL CAN AGREE THAT WE DO HAVE EXCEPTIONAL EMPLOYEES HERE IN THE CITY, AND I CAN SAY THAT FOR SURE AND THEY DID.

THEY PRESENTED US A BUDGET THAT THEY TRIED TO MAX OUT AND GET AS MUCH AS POSSIBLE.

NONE OF WAS PRESENTED INITIALLY, WHEN THE TALKS WERE AROUND, THEY DIDN'T THINK THAT THIS COOL WAS GOING TO HAPPEN, RETROACTIVE THAT WE COULD FIT IT IN THERE.

BUT THEY MADE CUTS AROUND 211,000.

WE'VE NOW FOUND MORE MONEY TO BE ABLE TO ACCOMMODATE THE 50 RETROACTIVE COAL, AND I GUESS THAT'S AN ISSUE BECAUSE I'M LOOKING AT ALL THE OTHER THINGS THAT WE COULD BE SPENDING ON FOR OUR RESIDENTS, AND ALL THE THINGS THAT I MENTIONED TO GET OUR POLICE DEPARTMENT BACK IN TO MAKE SURE THAT WE ARE FULLY STAFFED, MAKING SURE THAT WE HAVE INCENTIVES IN PLACE, OR WHAT ABOUT RETENTION PAY FOR EMPLOYEES THAT WASN'T DISCUSSED EITHER.

THERE'S OTHER CREATIVE METHODS TO DO THAT.

TO POINT OUT, WE HAVE GREAT EMPLOYEES, BUT THEY WERE HERE BEFORE.

WE HAD THIS RETROACTIVE COLA OR POSSIBLE RETROACTIVE COLA IN THE BUDGET.

FOR ME, IT'S HARD GOING FORWARD WITH THREE CENTS.

IF THIS WERE A NORMAL YEAR WHERE WE HAD ABOUT 3.5% INCREASE IN GROWTH, WE WOULD BE ABLE TO ABSORB THAT COST, KEEP THE TAX RATE THE SAME, AND BE ABLE TO GET ALL THESE THINGS THAT ARE OFFERED.

UNFORTUNATELY, WE WERE PUT IN A TERRIBLE SITUATION AND THAT IS UNFORTUNATE.

THE OTHER UNFORTUNATE THING IS THAT THIS HAD A TIME LIMIT ON IT.

IT WAS BAD TIMING, BAD TIMING ON TAD, BAD TIMING ALL AROUND.

TO ME, IT JUST IT'S HARD TO GO FOR THREE CENTS, GOING FORWARD BECAUSE WITH THAT AND SO I HAVE A FEW COUNCIL MEMBERS TO SPEAK FIRST, COUNCILMEMBER SABOL.

>> BRADY, DID YOU PULL THAT EXTRA MONEY TO GET TO THE 50%? DID YOU PULL IT OUT OF THE SUPPLEMENTALS?

>> NO, WE HAVE UNSPENT BOND PROCEEDS THAT CAN ONLY BE SPENT ON PUBLIC SAFETY EQUIPMENT INSIDE PUBLIC SAFETY VEHICLES.

THE STRYKER CONTRACT, THE FIRST YEAR OF IT, IT IS PUBLIC SAFETY EQUIPMENT IN PUBLIC SAFETY VEHICLES.

IT'D BE A ONE TIME SHOT TO FILL THE GAP IN THIS YEAR.

THEN WE'D HAVE ANOTHER YEAR TO FIGURE IT OUT, HOPE TAD READJUST THEIR REAPPRAISAL PLAN SO THEY CAN ACTUALLY REAPPRAISE PROPERTY NEXT YEAR, AND WE'D BE ABLE TO ABSORB THAT GOING FORWARD.

BUT YEAH, IT IS A VERY, VERY BRACKETED PIECE OF MONEY.

IDEALLY, WE'RE PAYING FOR THIS FROM OPERATING REVENUES FOR THIS OPERATING EXPENSE GOING FORWARD.

WE'LL HAVE TO DO THAT AT SOME POINT, BUT THIS WOULD BE THE ONLY OPTION TO MOVE FORWARD THE 50% IF THAT'S WHAT COUNCIL DESIRED.

BUT THE REASON THAT WAS NOT IN THE PROPOSED BUDGET IS BECAUSE IT'S NOT A RECURRING FUNDING SOURCE.

>> WHAT'S THE DIFFERENCE PER MONTH? LIKE, IF I'M PAYING, I'M TRYING TO GET TO THE DOLLAR AMOUNT.

I'M PAYING SO MUCH A MONTH IF MY HOUSE IS AN AVERAGE PRICED HOUSE.

HOW MUCH IS THAT RIGHT NOW COMPARED TO IF WE GO TO THE THREE [INAUDIBLE]

>> EACH PENNY INCREASE IS ABOUT $32 ON THE AVERAGE PRICE HOME A YEAR.

THE TOTAL THREE PENNIES, I THINK, WAS ABOUT $90 IN THAT RANGE A YEAR.

>> OKAY. IT'D BE DIVIDED BY SIX.

>> SIX TO $7.07 A MONTH, YES, TO PAY FOR THE FULL THREE PENNIES.

>> OKAY. I GET WHAT THE MAYOR IS SAYING, BUT MY PROBLEM IS, I AM ON SOCIAL SECURITY.

I'M GLAD TO GET THAT LITTLE COST OF LIVING.

WHEN WE RETIRE, WE USED TO DIDN'T LIVE SO LONG.

[01:05:03]

BUT WHEN YOU CAN LIVE TO LIKE 80 OR 90 YEARS OLD, AND YOU'RE STILL GOING, YOU NEED THAT LITTLE COST OF LIVING IN THAT THE EMPLOYEES DON'T GET SOCIAL SECURITY TO FALL BACK ON.

IN FACT, I TALKED TO SOME PEOPLE WITH SOME RETIREMENTS, AND MY HUSBAND HAD A RETIREMENT.

BUT AGAIN, HIS WAS FROZEN.

WHEN HE RETIRED, WHAT, 10 YEARS AGO, THAT'S WHAT IT REMAINED ALL THE TIME.

WITH SOCIAL SECURITY, WE GOT SOCIAL SECURITY, BUT THEN WE GET THE COST OF LIVING EVERY TIME, AND THAT KEEPS YOU GOING.

IT DOES KEEP YOU GOING, AND IT MAY BE JUST 3% A YEAR, BUT IT DOES KEEP YOU GOING.

IN THAT THEY THEY DON'T HAVE ANY OTHER REFERENCE OR ANY OTHER WAY TO EARN MONEY AFTER RETIREMENT, I THINK WE HAVE TO GIVE THEM AS MUCH AS WE CAN, AND I'M WITH MR. FARCO ON THE 50%, ONLY BECAUSE OUR EMPLOYEES ARE IMPORTANT.

I DON'T EVEN THINK THEY'RE AWARE OF HOW IMPORTANT IT IS.

I WASN'T AWARE WHEN I WAS 30 YEARS OLD HOW IMPORTANT THAT WAS.

FOR ME, IT'S JUST SOMETHING THAT I'M HELPING THEM WITH THEIR FUTURE.

I THINK WE OWE THAT TO THEM BECAUSE WE EXPECT A LOT OF GOOD WORK OUT OF THEM THROUGHOUT THEIR CAREER.

THAT'S MY OPINION. THANK YOU.

>> THANK YOU SO MUCH. COUNCILWOMAN MAYOR PRO TEM DAWKINS.

>> THANKS, MR. MAYOR. I UNFORTUNATELY, DON'T HAVE THE BENEFIT OF HAVING ATTENDED THE BUDGET WORK SESSION, SO I DON'T KNOW, MAYOR, IF YOUR FEELING IS THAT WE SHOULD BE GOING FOR THE NO NEW REVENUE RATE.

>> NO, NOT AT ALL.

>> I GUESS I NEED CLARITY ON [OVERLAPPING].

>> MINE IS NOT GOING TO NEW REVENUE RATE BECAUSE THAT NEGATES ANY RAISES FOR OUR EMPLOYEES.

I THINK EVERYONE CAN AGREE, EVERYBODY DESERVES A RAISE.

ESPECIALLY FOR THE STEP PLAN AND THAT THING.

FOR ME, IT'S NOT THAT IT'S TO ENCOMPASS THAT, SOME OF THE SUPPLEMENTAL REQUESTS AS WELL.

THE ONGOING COSTS WITH THE SUPPLEMENTAL REQUEST.

MY BIGGEST WAS THAT I FEEL LIKE WE TRIED TO MAKE THIS BUDGET.

WE TRIED TO FIT THIS IN HERE AS BEST WE COULD.

THEN WHAT'S ALSO GOTTEN ME CONCERNED IS THAT WE CUT 211 AT FIRST TO MAKE IT FIT.

WE THEN CUT AN ADDITIONAL 270 NOW, POSSIBLY TO ALSO MAKE THE 50% RETROACTIVE FIT.

THAT PRECEDENCE MAKES ME UNEASY TO GO TO THE VOTERS AND SAY, WELL, LOOK AT WHAT WE DID, WE WERE ABLE TO CUT THIS AND WE WERE ABLE TO CUT THIS JUST TO MAKE THIS FIT.

BUT WHAT ABOUT THE RESIDENTS WHO ARE GOING TO SEE MORE INCREASE? LET'S BE REAL HERE.

THIS PLAN IS NOT GOING AWAY NEXT YEAR, EITHER.

WE'RE MORE THAN LIKELY GOING TO HAVE TO RAISE TAXES AGAIN NEXT YEAR TO DO THIS.

>> REALLY, IT'S JUST THE THOUGHT OF TRYING TO MAKE SURE THAT OUR BUDGET SO CAN ARTICULATE A VALUE PROPOSITION THAT WILL BE DELIVERED TO RESIDENTS.

>> THAT'S RIGHT. THAT'S PERFECT.

>> BRADY, SINCE WE WERE ABLE TO FIND THINGS FROM LIKE A ONE TIME COST FOR THE STRYKER, ARE THERE ANY OTHER OPPORTUNITIES WITH BONDS FOR EQUIPMENT THAT WE CAN LOOK INTO?

>> YES. WHENEVER WE PRESENTED THE CAPITAL PORTION OF OUR BUDGET.

I WAS TOWARDS THE LATER SLIDES.

MOST OF THOSE ARE ACTUALLY BEING FUNDED OUT OF UNSPENT BOND PROCEEDS.

WE DID, WHENEVER THE DEPARTMENTS MADE CAPITAL REQUESTS, SOME OF THE PHASE NEX BONDS, WE WERE ABLE TO FUND SOME ITEMS AT THE YMCA COMPLEX. YES, WE HAVE [OVERLAPPING].

>> SO YOU'VE EXHAUSTED ALL THE OPPORTUNITIES THEN?

>> YES.

>> I GUESS MY POSITION IS REALLY MAKING SURE I UNDERSTAND WHERE YOU'RE SAYING, MR. DEMER IS MAKING SURE THAT WE CAN CLEARLY ARTICULATE, IF WE'RE GOING TO RAISE TAXES, THIS IS THE BENEFIT THAT OUR TAXPAYERS ARE GOING TO GET.

AS IT STANDS TODAY, WE'RE GOING TO MAKE SURE THAT WE HAVE THE STEP PLANS FOR OUR EMPLOYEES, PUBLIC SAFETY EMPLOYEES, AND WE HAVE A RETENTION APPARATUS IN TERMS OF OUR EMPLOYEES RETIREMENT.

>> CORRECT. NOW THAT THAT PRICE TAG IS 760,000, COULD WE NOT RAISE PAY FOR OUR POLICE? COULD WE NOT RAISE PAY A LITTLE BIT FOR OUR FIRE DEPARTMENT, THE SEP PLANS? THERE'S THAT ASPECT OF IT, TOO, IS THAT WE'RE CHOOSING TO TAKE ALL THIS MONEY, PUT IT IN THIS PARTICULAR POT, WHEREAS THERE'S ADDITIONAL THINGS THAT THIS CITY NEEDS OR THINGS THAT COULD BE DIRECTLY BENEFITED TO THE RESIDENTS.

[01:10:01]

AGAIN, WE HAVE VACANCIES THAT ARE NOT BEING FILLED.

IN THE LAST EIGHT YEARS, OUR POLICE DEPARTMENT HAD ONE MONTH WHERE THEY HAVE BEEN FULLY STAFFED.

ONE MONTH. NOW, WE'VE MOVED THAT GOAL POST ON THEM, AND WE'VE REDUCED OPEN POSITIONS THROUGHOUT THE YEARS, TO THE POINT NOW WHERE IT'S AT 80, BUT WE STILL ARE HAVING ISSUES, WHERE AS WE HAVE NOT BEEN FULLY STAFFED, IT IS CONSTANTLY AT A 6-7 VACANT POSITION RATE.

THAT'S PUBLIC SAFETY.

THAT IS THE SAFETY OF OUR RESIDENTS.

THAT'S HARD FOR ME TO ACCEPT, IS THAT WE HAVE OTHER THINGS AND OTHER NEEDS AND OTHER AREAS THAT WILL DIRECTLY BENEFIT THE RESIDENTS.

I JUST THREW OUT ALSO REDUCING COSTS FOR THE YMCA, BECAUSE IT SEEMS THAT'S A PROHIBITIVE COST.

NOW WE ALREADY DO GIVE DISCOUNTS.

AGAIN, THERE'S A LOT THAT COULD BE DONE WITH 760,000.

IT'S HARD TO GO TO THE VOTERS WITH THAT.

>> CAN I ADD TWO POINTS OF CLARITY ON THE TAX RATE?

[10. Consider a proposed tax rate and set the public hearing on the proposed tax rate, if required.]

>> GO AHEAD.

>> THE FIRST IS THE SAD REALITY THAT TAD HAS FORCED MANY OF THE CITIES AND TERRAN COUNTY INTO.

IN THE YEARS THEY DON'T REAPPRAISE, THE ONLY WAY TO GET ADDITIONAL MONEY FOR RAISES IS GOING TO BE TO RAISE THE TAX RATE.

THEN THEY WILL FINALLY RE APPRAISE EITHER NEXT YEAR OR THE YEAR AFTER.

VALUES WILL SKYROCKET AND THEN WE'LL LOWER THE TAX RATE.

THEY'VE CREATED A NEW ROLLER COASTER, WHERE THE TAX RATE'S GOING TO GO UP FOR A YEAR OR TWO, IT'S GOING TO GO DOWN.

IT'S GOING TO GO UP, IT'S GOING TO GO DOWN.

THE TAX RATE DECISION YOU ARE MAKING TODAY, OR YOU'RE NOT EVEN MAKING IT TODAY.

BUT WHENEVER YOU DO MAKE IT, IT'S NOT PERMANENT.

IT'S THE TAX RATE FOR NEXT YEAR.

YOU OR FUTURE COUNCILS WILL HAVE THE OPTION TO SET THE TAX RATE THE FOLLOWING YEAR, WHATEVER YOU SO DESIRE.

THEN THE SECOND POINT IS, TODAY'S ITEM IS NOT SETTING A TAX RATE.

IT IS ONLY SETTING THE MAXIMUM TAX RATE YOU CAN CONSIDER AT THE PUBLIC HEARING.

YOU DON'T HAVE TO MAKE ANY DECISIONS TODAY ON WHAT YOU WANT THE TAX RATE TO BE.

YOU JUST NEED TO GIVE YOURSELF THE CEILING ON WHAT YOU CAN CONSIDER AT THAT TIME.

>> YES, MAYOR PRO TEM DAWKINS.

>> MR. MAYOR, GIVEN THAT WE'RE GIVEN THE OPPORTUNITY TO HEAR FROM OUR VOTERS AND WE REPORT TO THEM.

I KNOW WE WANT TO BE GOOD STEWARDS OF FUNDS AND TRY TO CREATE A PLAN.

BUT BEFORE I WAS ON COUNCIL, I WAS ONE OF THE FEW PEOPLE THAT WOULD COME AND TALK ABOUT THE BUDGET.

I THINK THAT'S WHAT WE NEED TO DO IS JUST MAKE SURE THAT EVERY VOTER KNOWS THEY CAN COME AND TALK WHAT'S IMPORTANT TO THEM SO WE MAKE THE DECISION AT THE WILL OF THE VOTERS.

>> COUNCILMAN STEVES.

>> THANK YOU, MAYOR. LAST WEEK, DURING OUR DISCUSSION ABOUT THE BUDGET, YOU WERE STRESSING HOW TIGHT THIS YEAR'S BUDGET IS.

YOU GOT DOWN TO $1,000 OR SO.

>> YES.

>> SO IT'S VERY TIGHT, AND THAT'S AT 30% ON THERE.

THEY ALSO EXPLAINED HOW IMPORTANT THAT STRYKER AMBULANCE EQUIPMENT IS, HOW VITAL IT IS FOR THE CITY.

NOW, THAT CHANGED IN ONE WEEK.

THAT STILL IS A VITAL PIECE OF EQUIPMENT, IS IT NOT?

>> WE WOULD BE ENTERING INTO THAT LEASE AND GETTING THEM THAT EQUIPMENT.

WE WOULD JUST BE PAYING THE FIRST YEAR OF IT FROM A ONE TIME UNSPENT BOND PROCEED.

WE WOULD BE STILL BE ENTERING INTO THIS AGREEMENT WITH STRYKER, STILL GETTING THEM THAT EQUIPMENT.

BUT INSTEAD OF A MORE SUSTAINABLE APPROACH THIS FIRST YEAR, WE'RE GOING TO USE THE ONE TIME MONEY, AND THEN WE'RE GOING TO HAVE A YEAR TO BRAINSTORM NEW IDEAS ON HOW WE'RE GOING [OVERLAPPING].

>> YOU SAID HOPE THAT NEXT YEAR, YOU SAID HOPE.

>> WE HAVE SOME SMART PEOPLE HERE.

>> I AGREE. VERY SMART. BUT HOPE ISN'T.

>> WE SPENT HALF A YEAR GETTING TO THIS POINT WHERE WE THOUGHT THERE WAS A 0% CHANCE, WE'D BE ABLE TO EVEN PRESENT A 30% COOL TO YOU.

BUT WE SPEND HOURS AND HOURS PUTTING OUR MINDS TOGETHER TO GET IT TO THAT POINT WITH ANOTHER YEAR, I BELIEVE IN OUR ABILITY TO KEEP IT GOING FORWARD.

>> THAT'S WITHOUT DIPPING INTO THE RESERVE FUND?

>> YES, IT WOULD BE WITH HAVING A BALANCED BUDGET GOING FORWARD.

>> THANK YOU, MAYOR. THANK YOU AGAIN.

>> MAY I JUMP IN, PLEASE.

>> YES.

>> I JUST I FEEL LIKE I NEED TO SET THE RECORD STRAIGHT ON SOME OF THIS.

PLEASE KNOW THAT WE ANALYZED UPSIDE DOWN INSIDE OUT THESE NUMBERS FOR MONTHS.

WHAT WAS PRESENTED TO YOU WAS A STAFF RECOMMENDED BUDGET, THAT WAS A BALANCED BUDGET.

AGAIN, LOOKING AT THOSE FUNDS THAT WERE MOST APPROPRIATE TO BE PAID FOR CERTAIN THINGS, AND THAT'S A COMPLICATION THAT'S OFTEN NOT UNDERSTOOD WHEN WE'RE LOOKING AT CERTAIN THINGS THAT AGAIN, THIS MONEY CAN ONLY BE USED A CERTAIN WAY, THIS CAN ONLY BE USED A CERTAIN WAY.

WE'RE JUGGLING THAT. BUT JUST KNOW THAT, WHEN WE ARE ASKED TO, CAN YOU FIND A WAY? WE LOOK AT THAT AND THAT'S WHAT WAS DONE.

AGAIN, WE PRESENTED WHAT STAFF FELT COMFORTABLE WITH, AND WE DID THAT.

BUT WHEN WE'RE ASKED TO LOOK AT THINGS AND SEE IF WE CAN'T MAKE THINGS WORK,

[01:15:03]

IT COULD BE AT THE WILL OF COUNSEL, WE'RE GOING TO DO THAT.

PLEASE KNOW, I JUST DON'T WANT YOU TO THINK THAT WE HAVE FUDGED NUMBERS OR FLUFF THINGS TO MAKE THIS LOOK SO THAT WE HAVE $260,000.

IT CAN JUST BE SCOOTED AROUND HERE AND THERE.

IT WAS A INTENSE LOOK AT THINGS WHERE STACK CAME UP TO GET TO THAT NUMBER.

I JUST WANT TO SET THE RECORD STRAIGHT ON THAT.

BUT ALSO, 30, 50, 70, WHEREVER WE LAND, THAT IS PART OF THE PACKAGE.

THAT IS PART OF THE INCENTIVE PACKAGE TO ATTRACT POLICE OFFICERS.

IT'S PART OF THE RETIREMENT PACKAGE TO RETAIN AND KEEP THEM, TOO.

PLEASE KNOW THAT THE WAY WE LOOK AT IT, AND I KNOW THAT IN TALKING TO OUR DIRECTORS, THOSE ARE INCENTIVES TO BRING PEOPLE ON.

WE SEE THAT AS THAT.

IT'S SOMETHING THAT WILL HELP US PULL PEOPLE IN, CONTINUE TO PULL IN THOSE GOOD FOLKS, AND KEEP THEM HERE.

WHILE IT'S NOT A CASH INCENTIVE OR DIRECT PAY, IS IT'S PART OF THE WHOLE PACKAGE.

THAT'S WHAT BROUGHT US HERE TODAY WITH A 30% EVEN WAS THAT OUR PEOPLE HAVE BEEN ASKING FOR THAT, OUR DIRECTORS HAVE BEEN ASKING FOR THAT,AND SO IT IS PART OF THE PACKAGE.

I THINK, FUNDAMENTALLY, MAYBE WE JUST SEE IT DIFFERENTLY, BUT TO ME, THIS IS A DIFFERENT FORM OF A SIGN ON BONUS OR A RETENTION BONUS OR THINGS LIKE THAT.

THAT'S WHERE THAT'S COME FROM.

BUT AGAIN, PLEASE KNOW THAT WHEN WE ARE ASKED TO LOOK AT THINGS, WE DO IT VERY THOROUGHLY, BUT THERE IS NO FREE, AGAIN, WE WERE DOWN TO $100.

I EVEN LOOKED THIS WEEK AND SAID, HEY, WES, I THINK WE CUT A LITTLE MUCH KNOWING STAFF, AND WE'RE GOING TO MAKE THAT WORK.

WE DID PRESENT AS LEAN AS WE POSSIBLY COULD.

BUT AGAIN, WE'RE DEALING WITH ITEMS, AND WE'RE GETTING CREATIVE AND LOOKING AT WAYS TO COVER COSTS, AND THAT'S WHAT WE DID.

I CREDIT THE ABILITY OF BEING ABLE TO EVEN BRING THIS AS AN OPTION BY THE ABSOLUTE CREATIVITY AND THE EXPERTISE OF OUR FINANCE STAFF.

I'M HERE FOR QUESTIONS.

>> GOOD. ANY ADDITIONAL QUESTIONS?

>> JUST ONE MORE COMS.

>> YES. COUNCILMAN FARCO.

>> RUNNING A COMPANY, USUALLY, THE PEOPLE LIKE WE DO, GO TO OUR EMPLOYEES AND SAY, WE'RE GOING TO DO THIS.

IT'S HARD FOR THE EMPLOYEE TO COME TO US AND SAY THEY WISH WE WOULD DO A 50% OR 70% CALLER.

WHEN WE LEFT OUR MEETING, LIKE I SAID, IT WAS JUST TO ME, SO ABYSMAL THAT WE WEREN'T GOING TO TAKE CARE OF THE LONGEVITY OF OUR EMPLOYEES NOW AND THE FUTURE ONES THAT CAME ON.

STAFF DIDN'T COME TO ME AND ASK.

AFTER COUNCILWOMAN SABLES COMMENT THE OTHER NIGHT, I WAS RIGHT.

SHE WAS RIGHT, 50%.

IT WAS ABYSMAL, AND IT'S 50% OF WHATEVER CALLER RAISE IS OUT THERE.

IF IT'S A 3%, IT'S ONLY A 1.5% AT THAT RATE.

AS A MEMBER OF THIS BOARD.

>> I APPROACHED THEM.

I SAID, IS THERE ANY CREATIVE WAY? EVEN MY PROPOSAL TO THEM WAS, COULD WE TAKE THIS ONE TIME AT OF FUND BALANCE BECAUSE IT'S WORTH IT BECAUSE WE DON'T KNOW WHAT'S GOING TO HAPPEN IN THE FUTURE WITH THE STATE, AND THIS.

THIS WAS SOMETHING THAT WE'VE FALLEN UPON.

YES, AND THERE IS NO GREAT TIME FOR ANYTHING.

WE ARE IN A STATE OF THAT, BUT WHAT I'M PROUD ABOUT IS OUR STAFF MADE IT WORK, AND NEXT YEAR, THEY'LL MAKE IT WORK AGAIN, AND WE'LL FIGURE IT OUT.

MAYBE WE WON'T HAVE EXTRA DOODADS NEXT YEAR IN THE BUDGET, BUT WE'LL HAVE EXTRA STAFF TO TAKE CARE OF THIS.

I RESPECT IT. I'M WITH YOU.

I WANT TO BE CONSERVATIVE TOO, BUT I DON'T WANT TO BE CONSERVATIVE AT THE COST OF FUTURE EMPLOYEES AND THE EMPLOYEES WE HAVE NOW.

PLEASE, DON'T THINK BY ANY MEANS THAT STAFF THOUGHT THIS UP.

AS A BUSINESS OWNER, I UNDERSTAND THE FACT THAT HOLDING GOOD STAFF AND BEING ABLE TO BE PROUD BECAUSE IT'S A FAMILY AT MY ATMOSPHERE TOO.

IT'S A FAMILY TO TAKE CARE OF THEM IN THE FUTURE.

I JUST THOUGHT THIS WAS MINIMAL TO TAKE CARE OF RIGHT NOW.

WE COULD DO THIS AT A TIME IN LIFE.

IT'S A TIME THAT IT'S TOUGH, BUT IT'S A TIME THAT WE HAVE AN OPPORTUNITY TO TAKE CARE OF WHAT WAS WRONGED IN THE PAST.

THAT'S IT ON THAT FROM ME.

>> OBVIOUSLY, IT'S A LOT TO IMPACT HERE BECAUSE THERE'S A LOT OF DECISIONS THAT HAVE TO BE MADE, AND LET'S BE HONEST, THEY WERE FORCED UPON US UNWILLINGLY.

IF THIS WERE A NORMAL YEAR, THIS CONVERSATION WOULDN'T BE HAPPENING.

WE'D BE HOME BY NOW PROBABLY.

[01:20:02]

>> YES. WE WOULD.

>> YOU WOULD BE. [LAUGHTER] LIKE I SAID, IT'S VERY DIFFICULT.

THERE'S NO DOUBT WE HAVE SOME OF THE BEST EMPLOYEES HERE IN THE CITY.

I KNOW THAT THEY WORKED VERY HARD TO GET THIS DONE, PRESENTING US WITH THIS BUDGET, BUT IT OCCURRED TO ME THAT WHEN WE'RE LOOKING THROUGH IT, THIS TOOK PRECEDENCE AND AGAIN, FINDING ADDITIONAL MONEY TO INCREASE IT AND COMMITTING 760,000 EVERY YEAR NOW.

IF WE APPROVED, WE'D GO FORWARD WITH THIS, IT'S HARD TO SWALLOW AND THEN PUTTING IT ON THE RESIDENTS IN ADDITION TO TWO OTHER CENTS ON THE TAX RATE, WHEREAS WE COULD USE IT FOR OTHER THINGS THAT'S GOING TO DIRECTLY BENEFIT THE RESIDENTS, AND THEY CAN SEE IT TANGIBLE.

THAT'S ALL I'LL SAY ON THIS. WITH THIS, WE'RE GOING TO GO AHEAD IN.

>> ONE QUESTION REAL QUICK.

>> SURE.

>> THANK YOU, MAYOR. WHAT'S THE TOTAL OPERATING BUDGET FOR THE CITY? WE'RE TALKING ABOUT $750,000.

HOW MUCH IS OUR LITTLE SMALL TOWN WE CALL HOME? IF ANYONE IS STILL WATCHING AT HOME.

[NOISE]

>> IT'S ABOUT 104, I THINK.

>> A HUNDRED AND FOUR MILLION.

>> A HUNDRED AND FOUR MILLION DOLLARS.

THAT'S A LOT OF MONEY.

PERCENTAGE WISE, THAT'S WHAT?

>> LESS THAN 1%.

>> THANK YOU.

>> WITH THAT, WE HAVE TO GO AHEAD AND SET A RATE FOR THIS HERE, A MAXIMUM RATE. COUNCILMEMBER SABOL.

>> I'D LIKE TO MAKE A MOTION TO CONSIDER A TAX RATE OF, LET'S SEE, 0.526212 PER $100 ASSESSED VALUATION TO BE VOTED ON THE SEPTEMBER 9TH, 2025 AGENDA, AND SCHEDULE A PUBLIC HEARING TO DISCUSS THE TAX RATE ON TUESDAY, SEPTEMBER 9TH, 2025 AT 6:00 PM AT BEDFORD CITY HALL.

>> I HAVE A MOVE FOR THAT TAX RATE BY COUNCILMEMBER SABOL.

I HAVE A SECOND BY COUNCILMEMBER FARCO. LET'S GO AHEAD AND VOTE.

THAT PASSES WITH SIX VOTES.

THANK YOU, COUNCIL. THANK YOU, STAFF.

MOVING ON, WE HAVE CITY MANAGER AND COUNCILMEMBER REPORTS.

[11. Mayor/Council Member Reports]

I HAVE NOTHING ON MY END TO REPORT, BUT I DO KNOW THAT WE HAVE SCHOOL STARTING TOMORROW.

SCHOOL STARTS TOMORROW, HARD TO BELIEVE.

AS CITY COUNCIL, I KNOW ASKED COUNCILMEMBER GAGLIARDI TO GIVE US ASSIGNMENTS AND ALL OF THAT.

>> YES, SIR.

>> BE IN CHARGE OF GETTING US OUT THERE INTO ELEMENTARY SCHOOLS.

>> YES, SIR. WELL, I'LL JUST GO DOWN THE DAIS, IF YOU DON'T MIND.

MAYOR PRO TEM DAWKINS WILL BE AT STONEGATES ELEMENTARY.

COUNCILWOMAN JOY DONOVAN BRANDON WILL BE AT BEDFORD HEIGHTS ELEMENTARY.

>> GO BULLDOGS.

[LAUGHTER] COUNCILWOMAN SABOL WILL BE AT SHADY BROOK ELEMENTARY.

>> I'LL PICK YOU UP AT 7:00.

[LAUGHTER]

>> THANK YOU. COUNCILMAN STEVES WILL BE AT SPRING GARDEN.

MAYOR COGAN WILL BE AT THE MEADOW CREEK.

COUNCILMAN FARCO, WILL BE AT BELL MANOR WITH FELLOW NOLAN GRADUATE, MRS. PROSHATANO.

I WILL BE AT SHADY BROOK ELEMENTARY UNLESS COUNCILMAN SABOL FORGETS TO COME GET ME.

[LAUGHTER] NOW, BECAUSE THEN I'LL STAY ALL DAY.

A BIG THANK YOU TO STAFF.

NOW, I WILL SAY. DAN BEING AN EDUCATOR HAD AN ISSUE WITH THIS.

>> I DID.

>> BUT GOLLY, IT IS A BAG OF FUN.

THESE KIDS ARE GOING TO GO AND START SCHOOL IN STYLE WITH BOUNCY BALLS.

MY WIFE'S GOING TO LOVE THAT.

ALL KINDS OF FUN THINGS.

LOOK AT THAT. WELCOME BACK TO SCHOOL KIDS, AND THANK YOU, COUNCIL FOR, LOOK AT THAT.

THERE IT IS, BEDFORD BLUE.

>> I HAVE A FEELING IT'S GOING TO BE OUR LAST YEAR DOING THIS.

>> NO.

>> THEY'RE NOT GO TO INVITE US BACK.

>> [LAUGHTER] IT'S A FUN TIME.

[01:25:01]

>> IT'S GOING TO TO BE A GOOD TIME.

DO YOU HAVE A TIME FOR US WHERE WE NEED TO BE?

>> WE SHOULD REPORT TO CAMPUSES AROUND 7:15 IN THE MORNING.

THEN THE KIDS WILL BE ROLLING UP.

I TYPICALLY, I'VE BEEN GOING THE PAST SEVERAL YEARS TO SHADY BROOK, BECAUSE MY WIFE IS, AS YOU ALL KNOW, THE GIFTED AND TALENTED EDUCATOR ON THAT CAMPUS. IT'S A LOT OF FUN.

YOU GET TO MEET A LOT OF THE PARENTS AND THEY HAVE SOME COFFEE AND THERE'S USUALLY DOUGHNUTS. IT'S A GOOD TIME.

THEN YOU GET TO SEE THE KIDS MARCHING DOWN.

IT'S A GOOD TIME. I LOOK FORWARD TO, AND I THINK YOU'RE ALL GOING TO ENJOY IT, AND TAKE LOTS OF PICTURES.

>> VERY GOOD.

>> THERE YOU GO.

>> APPRECIATE IT. DO YOU'VE ANYTHING FOR SENIOR ADVISORY SINCE I HAVE YOU ON HERE?

>> WELL, THANK YOU SO MUCH. YES, WE MET THIS LAST WEEK.

BOARD MEMBER BECKY FARRELL HAS BEEN PUTTING TOGETHER A SURVEY TO TRY AND REACH OUT TO THE SENIORS OF THE CITY, SO WE CAN GET THEIR OPINIONS ON WHAT WE CAN DO BETTER, WHAT MAYBE THEIR NEEDS ARE.

WE'RE GOING TO CONTINUE WORKING WITH THAT.

CHAIRMAN GINA DAY BROUGHT FORWARD A POSSIBLY WORKING TOGETHER WITH THE ANIMAL SHELTER, COUNCILMAN FARCO, MAYBE TO DO A FOSTERING PROGRAM FOR MAYBE OLDER ANIMALS AND JUST SO SENIORS CAN HAVE COMPANIONS TOO AND WHATNOT.

WE'LL BE WORKING CLOSELY WITH STAFF ON THAT, AND WE'LL BE MEETING NEXT MONTH.

AGAIN, IT'S GOING TO BE A GOOD TIME.

>> VERY GOOD. THANK YOU SO MUCH.

ANIMAL SHELTER ADVISORY BOARD.

[12. Report on most recent meeting of the following Boards]

>> THANK YOU, MR. MAYOR. WE MET YESTERDAY MORNING.

JUST LET YOU KNOW, WE'VE GOT A COUPLE OF THINGS COMING UP.

AUGUST 23RD, WE HAVE A CLEARED SHELTER EVENT AT OUR SHELTER.

BE LOOKING FORWARD AND I GUESS IT'S OCTOBER.

THE PD AND FIREHOUSE OPEN HOUSES, THEY'LL HAVE THE ADOPTION TRAILER OUT THERE.

BUT I JUST WANT TO LET YOU KNOW THAT OUR OUR ANIMAL SHELTER STAFF HAS DONE SUCH A GREAT JOB THAT WE HAD A BIG EVENT WHERE THEY GOT AN AWARD FOR THEIR ZERO KILL SHELTER, WHICH IS AWESOME.

BUT ALSO, YEAR-TO-DATE, LAST YEAR, WE HAD 350 CALLS INTO OUR SHELTER.

THIS YEAR, WE'VE HAD 1,290 CALLS INTO OUR SHELTER.

IF ANYBODY WANTS TO HELP VOLUNTEER AND ANSWER SOME PHONES AND HELP OUT OUR STAFF UP THERE, WE WOULD LOVE IT.

ALSO, BE PREPARED, COMING UP FOR THE HOLIDAYS, WE'LL HAVE A WISH TREE FOR KITTY LITTER AND ALL THE THINGS THAT ANIMALS NEED.

THANK YOU, AND WE APPRECIATE ALL THE WORK THAT THE ANIMAL STAFF DOES FOR US.

>> VERY GOOD. BEAUTIFICATION ADVISORY BOARD.

>> THANKS, MR. MAYOR. BEFORE I GET INTO BEAUTIFICATION, I DID WANT TO HIGHLIGHT, AS MAYOR PRO TEM, THE MAYOR DID ASK ME TO ATTEND THE MAYORS' COUNCIL FOR JULY.

JUST AN OVERVIEW OF THE MAYORS' COUNCIL.

IT'S WHERE ALL THE MAYORS FROM TARRANT COUNTY GET TOGETHER.

THE PRIMARY FOCUS IS TO DISCUSS THE DISTRIBUTION OF COMMUNITY BLOCK DEVELOPMENT GRANT FUNDS.

MR. MAYOR TALKED ABOUT THE LAST MEETING, THERE WAS SOME CHALLENGES OR THOUGHTS THAT THE COUNCIL MIGHT BE DISSOLVED BECAUSE THOSE FUNDS WERE NOT ALLOCATED IN OUR FEDERAL BUDGET.

BASED ON THE CONVERSATION, THE HOUSE AND SENATE BUDGET HAS RESTORED THOSE FUNDS FOR NOW.

WE HAVE NOT HAD FEDERALLY A VOTE.

THEY'VE HAVE BEEN A RECESS.

BUT WITH THE CONVERSATIONS, THE BUDGET HAS BEEN RESTORED, WHICH WILL KEEP THIS GROUP GOING.

SOME OF THE ACTIONS THIS GROUP DID TAKE WERE OUR 911 SERVICES, FLORIDA COUNTY.

THERE'S A BUILDING THAT HANDLES THE STAFF AND THE TECHNOLOGY.

WHEN YOU CALL 911, IT CAN DO THE GPS AND ALL THE TECHNOLOGY TO MAKE SURE YOU GET EMERGENCY SERVICES TO YOUR LOCATION.

THE MAYORS' COUNCIL HAS A SEAT ON THAT PARTICULAR BOARD TO VOTE ON THEIR BUDGET.

WE DID VOTE FOR THAT BUDGET FOR THE 2026 YEAR.

ALSO, THERE WERE SOME BYLAW CHANGES TO JUST CODIFY WHAT THE MAYORS' COUNCIL DOES.

THAT WAS ACHIEVED AT THE LAST MEETING.

THEY WANT TO REPORT THAT OUT ON BEHALF OF THE MAYOR.

MOVING ON TO BEAUTIFICATION.

OUR NEXT OPPORTUNITY IS SEEING ALL THE WINNING PROPERTIES.

THE FIRST PROPERTY IS GOING TO BE AT 8:30, AND THAT WAS THE SMART YARD.

AT NINE O'CLOCK, WE'RE GOING TO CHICK-FIL-A.

WE'RE GOING TO START ON THE SOUTH SIDE, GO UP BEDFORD ROAD TO CHICK-FIL-A,

[01:30:01]

AND THEN GO TO THE LAW FIRM.

THEN WE'RE GOING TO GO TO NORTH BEDFORD TO THE HOLIDAY PROPERTY.

THEN OUR NEXT MEETING IS NEXT MONDAY.

>> VERY GOOD. THANKS AGAIN FOR FILLING IN FOR THE MAYORS' COUNCIL.

YOU'RE MORE THAN WELCOME TO ATTEND ANY OTHER ONES IF YOU'D LIKE.

THAT'S TRUE ANYBODY HERE ON THIS COUNCIL.

IF YOU WANT TO KNOW, I'LL LET YOU KNOW, AND YOU CAN COME ATTEND.

>> THANKS, MR. MAYOR.

>> VERY GOOD. LIBRARY ADVISORY BOARD.

>> I'M GOING TO LEARN ONE OF THESE DAYS.

THANK YOU, MR. MAYOR. WE HAVE NOT MET.

THE LIBRARY ADVISORY BOARD HAS NOT MET FOR A WHILE, AND OUR MEETING IS NEXT WEEK, SO I DON'T HAVE A REPORT ON THAT, BUT I WOULD LIKE TO GIVE A REPORT ON THE CONVOCATION, IF I MAY.

>> SURE.

>> I WAS LUCKY ENOUGH TO GET TO ATTEND THE HEB ISD CONVOCATION, WHICH IT'S MY SECOND YEAR TO DO IT, AND I THOROUGHLY ENJOY IT.

IT IS JUST UPLIFTING TO SEE WHAT OUR SCHOOL DISTRICT DOES.

THIS YEAR, THEY FOCUSED A WHOLE LOT ON THE MUSIC PROGRAMS, WHICH ARE JUST OUTSTANDING IN OUR SCHOOL DISTRICT.

INCLUDING, I MIGHT HAVE MENTIONED BEFORE, LD BELL'S BAND IS GOING TO GO TO THE MACY'S THANKSGIVING DAY PARADE.

WHAT I DID NOT KNOW UNTIL LAST WEEK IS THEY ARE THE ONLY BAND IN THE STATE OF TEXAS THAT IS GOING.

WE NEED TO BE EXTRA PROUD, AND IF THEY COME A CALLING AND NEED SOME HELP FROM YOU, I HOPE EVERYONE WILL SUPPORT LD BELL'S BAND.

THE MUSIC THAT FROM ELEMENTARY SCHOOL TO HIGH SCHOOL, IT WAS WONDERFUL.

WELL, WE ENDED WITH TEACHERS SINGING AND DANCING ON STAGE, BUT ONE OF THE HIGHLIGHTS WAS HIGH SCHOOL GIRL SINGING DEFYING GRAVITY WITH THE FOG.

I JUST WAS SO PROUD THAT SHE'S IN OUR DISTRICT, AND IS THAT TALENTED.

THEN I ALSO WANTED TO SAY, CONGRATULATIONS TO DR. HARRINGTON WHO WAS VOTED TEXAS' MOST OUTSTANDING SUPERINTENDENT OF THE YEAR BY THE PTAS OF THE STATE.

WOW. AREN'T WE LUCKY? GOOD LUCK TO ALL THE KIDS WHO ARE STARTING SCHOOL TOMORROW AND THE TEACHERS.

>> YES. LET'S NOT FORGET THEM AS WELL.

GOOD JOB. PARKS AND RECREATION.

>> WE DIDN'T MEET THIS MONTH, SO NO REPORT THIS MONTH.

>> NO REPORT. VERY GOOD.

MOVING ALONG, CITY MANAGER STAFF REPORTS.

>> GOOD EVENING, MAYOR. I DON'T HAVE ANYTHING TONIGHT. THANK YOU.

>> WE DO HAVE AN EXECUTIVE SESSIONS,

[EXECUTIVE SESSION]

SO WE'RE GOING TO CONVENE IN CONSULTATION WITH THE ATTORNEY FOR SECTION 551.071. WE'LL BE BACK.

I WON'T WANT TO SAY IN A MOMENT, BUT WE WILL BE BACK.

WE ARE NOW BACK FROM EXECUTIVE.

SEEING THAT, THERE WAS NO ACTION THAT NEEDED TO BE TAKEN.

I THINK WE ARE AT THE END OF OUR AGENDA.

>> MAYOR COGAN, I WOULD LIKE TO MAKE A MOTION TO ADJOURN.

>> MOVE TO ADJOURN?

>> YES. MOVE TO ADJOURN.

>> I WOULD LIKE TO MOVE TO ADJOURN.

>> MOVE TO ADJOURN.

>> CAN I GET A SECOND?

>> COUNCILMEMBER GAGLIARDI.

DO I HAVE A SECOND? COUNCILMEMBER DONOVAN BRANDON.

ALL IN FAVOR, SAY AYE.

AYE. MOTION PASSES.

WE ADJOURNED AT 7:49.

THANK YOU ALL VERY MUCH. [BACKGROUND]

* This transcript was compiled from uncorrected Closed Captioning.

Aug 12, 2025 City Council

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