[00:00:21]
IT'S 11:30 AM ON THURSDAY, SEPTEMBER 16TH.
UM, WE HAVE A QUORUM FOR THE BAYTOWN FINANCE COMMITTEE.
[a. Consider the approval of minutes for the Finance Committee meeting held June 17, 2021.]
A IS CONSIDERED THE APPROVAL OF MINUTES FOR THE FINANCE COMMITTEE MEETING HELD JUNE 17TH, 2021.ANY DISCUSSIONS ABOUT THE MINUTES? ALL IN FAVOR, PLEASE SAY AYE.
[a. Consider approving a Debt Policy for the City of Baytown concerning the financing of capital investment in the City's infrastructure.]
ITEM TWO A, CONSIDERING A DEBT POLICY FOR CITY OF BAYTOWN CONCERNING THE FINANCING OF CAPITAL INVESTMENT IN THE CITY'S INFRASTRUCTURE.SO VICTOR, YOU WANNA KIND OF TAKE US THROUGH THIS? YEAH, SO WILL, SO I SENT OUT A, AN EARLY DRAFT OF A PROPOSED
I HAD SOME FEEDBACK FROM, FROM HEATHER, UH, SUBSEQUENT TO PUTTING THAT TOGETHER AND I ALLOWED A COUPLE OF AMENDMENTS, WHICH YOU'LL WRITE NEXT.
YOU, SO, SO WHAT DID THEY OBVIOUSLY START WITH? WHAT THE, THE PURPOSE OF IT IS.
UM, IT'S ALWAYS IN THE CONTEXT OF THE, UH, THE LOSS, UH, AS IT RELATES TO THE ISSUE ISSUANCE BY MUNICIPALITIES.
SO EVERYTHING WE DO IS TO SIT WITHIN THAT FRAMEWORK.
FIRST OF ALL, START WITH THAT, UM, USEFULLY BROUGHT UP A POINT ABOUT, WELL WHAT ABOUT REVIEWING THIS POLICY? AND THAT'S RIGHT.
WE SHOULD WE REVIEW THE INVESTMENT POLICY EVERY YEAR AND WE'LL BE GETTING THAT IN THE NEXT NEXT.
SO I JUST ADDED THAT IN EACH YEAR.
SHALLOW WRITTEN REVOLUTION, UM,
SO MY, MY THOUGHT AROUND THAT WAS LIKE KIND OF HOW THE CHARTER REVIEW COMMITTEE IS TRIGGERED ON THEIR CALENDAR LIKE EVERY THREE YEARS TO REMIND US, HEY, DO YOU WANT TO HAVE A CHARTER REVIEW COMMITTEE? I KIND OF JUST WANTED SOME LANGUAGE IN THERE THAT WOULD TRIGGER STAFF ANNUALLY TO BRING THIS UP FOR COUNCIL OR US TO REVIEW BECAUSE I'M KIND OF THINKING OF THIS BEYOND US, RIGHT? FOR FUTURE COUNCILS AND I, I DIDN'T WANT THIS TO JUST LIKE GET APPROVED AND THEN SIT ON A SHELF AND NO ONE EVEN KNOW IT EVER EXISTS.
SO IT'S, IT'S, IT'S GOOD PRACTICE ACTUALLY TO DO THAT.
UM, SO ANYWAY THAT I'VE ADDED THAT AND THEN I'VE ALSO ADDED A REFERENCE TO THIS TO FINANCE SUBCOMMITTEE SAY THAT THE COUNCIL MADE WITH FERRET JUST TO GIVE THEM THE OPPORTUNITY TO SAY, HEY YOU NEXT THEN, UM, WHICH WHERE? GO ON.
TO REFERENCE TO THE TYPES OF DEBT INSTRUMENTS THAT ARE AVAILABLE TO MUNICIPALITIES.
I'VE GET INTO A LOT OF DETAIL FROM EACH OF THOSE.
I DIDN'T THINK YOUR POLICY NEEDED TO, UH, WENT ABOUT THE GREAT DETAIL, BUT WHAT I DID DO WAS, UH, REFERENCE WHAT IT CAN BE USED FOR AND RATHER THEN AS YOU'LL SEE, UH, AN EX, WELL IT'S THE ACTUAL LEGAL DEFINITION OF CAPITAL ASSET IS THAT'S WHAT SAYS YOU CAN BORROW MONEY TO UH, TO DO AS TO BUY LAND, IMPROVE LAND, OTHER THINGS, ASSETS.
IT REFERENCES, BELIEVE IT OR NOT, DOES WORKS FROM THE COUNTRY.
AND THAT'S BECAUSE THERE ARE SOME, I THINK THIS IS WHERE THINGS ARE HUNDRED YEARS OLD BY THE, THE CITY OF THE COUNTRY AND THEY CAN GET BOUGHT, SOLD.
SO REFERENCES THE FACT TO DO THAT.
AND THEN IT REFERENCES INFRASTRUCTURE SPECIFICALLY.
SO THAT'S WHERE THAT CAME FROM.
IS THIS WHERE LIKE THE TABLE WOULD BE INSERTED? UM, UM, WELL, UM, THIS, WHICH I, I DUNNO IF I GOT THE CHANCE CHARGE.
THIS WAS A TABLE THAT I THINK NICK HAD PUT TOGETHER FOR, AND WE TALKED ABOUT THIS, THE LAST FINANCE COMMITTEE
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WHEN WE WERE LOOKING AT THE WHOLE ISSUE OF DEBT AND THIS, IT'S A HELPFUL, SO WHAT ARE THE THINGS THAT YOU CAN DO? YOU CAN HAVE A GENERAL OBLIGATION BOND BY ELECTION.UM, YOU CAN ISSUE CERTIFICATES OF OBLIGATION ISSUE, REVENUE, THE BOARD DEVELOPMENT, BOARD LOAN, THAT'S JUST REFERENCE TO ANOTHER TYPE OF, UH, OF INSTRUMENT.
AND THEN THE LEFT HAND SIDE HERE IDENTIFIED WHERE THE MONEY WILL COME FROM, FINANCE THOSE AND ALSO REFERENCES PARTICULAR TYPE PROJECT.
AND THAT JUST IS A STARTING POINT I THINK ABOUT WHAT YOU WERE TALKING ABOUT HAVING A TABLE FORM PAY, WHAT TYPE OF DEBT CAN WE, CAN WE ISSUE? WHAT WOULD YOU ISSUE IT FOR? WHERE WOULD IT BE A CERTIFICATE OF, WOULD BE A GU GOING OR COULD YOU DO SOMETHING ELSE? SO THAT WAS, THIS IS A FIRST CALL.
I THINK THE QUESTION IS, IS THIS, IF YOU REFINE THIS AND GOT IT TO WHAT YOU WANTED IT TO LOOK LIKE, WOULD THIS BE MORE OF A TOOL TO USE OR SOMETHING ACTUALLY IN THE POLICY? I THINK MAYBE AN APPENDIX TO THE POLICY BECAUSE I THINK IT'S IMPORTANT FOR FUTURE COUNCIL MEMBERS TO HAVE ACCESS TO THIS BECAUSE THIS STUFF IS SO DIFFICULT TO UNDERSTAND AND WE'RE JUST NORMAL PEOPLE WHO DON'T DO THIS ALL THE TIME.
AND SO I REALLY WANT THIS TO BE LIKE PLAIN ENGLISH LAY PERSON.
I DON'T CARE WHAT WALK OF LIFE YOU COME FROM, IF YOU GOT ELECTED AND YOU HAVE TO MAKE THESE BIG FINANCING DECISIONS, I COULD KIND OF LOOK AT THIS AND GET SOME KIND OF BASIC GRASP.
SO A TOOL, YEAH, MUCH LIKE YOU HAVE YOUR MUD AND PIT POLICY RIGHT NOW YOU CAN, YOU CAN APPROVE A MUD OR A PIT OR ANYTHING THE COUNCIL WANTS TO, BUT YOU HAVE A TOOL, A TEMPLATE THAT YOU SAY, HEY, THESE ARE THE GENERALLY THE CONDITIONS WHEN WE, WE DO THIS.
SO I LIKE POLICIES THAT LEAVE FUTURE COUNCILS A BACK DOOR IN EXTRAORDINARY CIRCUMSTANCES THAT WE POSSIBLY CAN'T FORESEE RIGHT NOW.
THAT'S WHY I WOULD ALSO RECOMMEND HEARING THAT WE ALSO SAY, UH, THAT CAPITAL ASSETS ARE DEFINED AS HAVING BLAH BLAH BLAH.
YEAH, I LIKE THE DEFINITION OF CAPITAL ASSETS BECAUSE AGAIN, THOSE ARE SOME TERMINOLOGY.
WHAT DOES THAT MEAN? RIGHT? UM, BUT JUST LOOKING KIND OF AT THIS TABLE, LIKE AT A GLANCE, THERE'S NOTHING THAT I WOULD EVER DO A GO FOR 'CAUSE THERE'S NOT AN X MARKS NEXT TO IT.
SO LIKE I, I GUESS I DON'T UNDERSTAND WHY DOESN'T ANY, ISN'T ANYTHING APPLICABLE TO A GO.
SO, AND THIS WAS, SO THIS WAS BUILT BASED, BASED ON THE NEW STATE LAW THAT CAME OUT AT OKAY, WHAT WOULD WE BE ALLOWED TO DO? COS FOR WHAT, WHAT DOES THE STATE REQUIRE COS FOR? UM, AND THERE ARE A FEW PROJECTS NOW THAT WE WOULD HAVE TO DO AS GO ELECTION FOR NEW CITY HALL, BUT YOU CANNOT DO A CO FOR.
UM, SO IT WAS REALLY TRYING TO LOOK AT THAT AND WE LEFT A SECOND COLUMN BLANK BECAUSE WE DIDN'T WANNA MAKE ANY AS ASSUMPTIONS ON.
OKAY, SO THE GEO, IT'S NOT THAT WE CAN'T USE IT, THIS IS WHERE YOU HAVE YOUR PHONE.
THE GEO'S ONLY REQUIRED IF IT'S NOT SOMETHING ON THIS RIGHT HERE.
BUT WE THOUGHT, WELL THERE MIGHT BE ONE OF THESE ROWS WHERE COUNCIL WOULD SAY, YOU KNOW WHAT, THE STATE DOESN'T REQUIRE US TO DO A GEO ELECTION, BUT THAT'S A CATEGORY THAT WE FEEL LIKE REALLY NEEDS TO GO TO THE FOCUS.
SO WE WE'RE SUPPOSED TO FILL IN THE SECOND COLUMN.
I GIVES YOU KIND OF A CLEAN LIST TO LOOK AT.
IF, IF THERE WERE SOME WHERE YOU SAID, YOU KNOW WHAT THAT UNLESS THERE'S SOME CRAZY REASON LIKE RICK SAID, YOU KNOW, THAT THERE COULD ALWAYS BE A REASON.
BUT GENERALLY IF WE'RE DOING A, WHATEVER IT IS, UM, WE'D REALLY LIKE TO RECOMMEND GEO ELECTIONS.
I I WOULD REALLY DEFINE THAT MORE ALONG THE LINES OF A COMMUNITY A MINUTE.
FOR EXAMPLE, REC CENTER, UH, GOLF COURSE, THOSE KIND OF THINGS.
I UM, I THINK WE SHOULD MAYBE COME UP WITH WHAT SHOULD BE IN THE SECOND COLUMN SO WHEN IT'S PRESENTED TO COUNCIL AND LET THEM KNOW THIS IS OUR RECOMMENDATION BUT THE PURPOSE OF THE DISCUSSION IS FOR Y'ALL TO REVIEW THIS AND IF WE WANNA MAKE CHANGES TO THE SECOND COLUMN, THEN COUNSEL CAN, BUT HERE'S WHAT US THREE THINK SHOULD BE IN THE SECOND COLUMN AND GOING BACK TO REVIEWING IT ON A YEARLY BASIS.
IF, IF WE DO REVIEW IT ON A YEARLY BASIS AND WE MAY DECIDE LET'S MOVE THIS FROM HERE AND PUT IT BACK OVER HERE 'CAUSE WE DON'T THINK THAT IT, WE HAVE THAT OPTION.
SO I, YEAH, I THINK IT'S GONNA WORK BECAUSE COUNCIL MEMBERS WILL CHANGE AND
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SO WILL THEIR PHILOSOPHIES.ON HOW TO FINANCE CITY IMPROVEMENTS.
SO ONE DIFFERENCE TOO, YOU KNOW, ONE THING THAT I THINK WE'VE KIND OF ALL SAID AND YOU ALL HAVE SAID WE NEED TO GET A LITTLE BETTER AT IS, IS LONGER TERM PLANNING OF, OF DEBT AND SIGNIFICANT CAPITAL PROJECTS.
AND SO SOME OF THAT WILL HELP COUNSEL WITH THIS POLICY AS WELL BECAUSE IT'S NOT LIKE YOU COME BACK EVERY YEAR AND SAY, WELL WHAT DEBT ARE WE GONNA ISSUE? WHERE ARE GOING TO, WHERE ARE WE GONNA ISSUE IT FOR? IF YOU CAN LOOK OUT LIKE FIVE YEARS AND SAY HERE'S GENERALLY HOW MUCH DEBT WE COULD HAVE AVAILABLE AND ASSUMING WE WANT TO USE ALL THAT OR MORE OR LESS, HOW DO WE WANT TO KIND OF SPLIT THAT OUT BY PROJECT, YOU KNOW, THESE ARE THE LIST OF PROJECTS WE WANT GO TO THE VOTERS.
THESE ARE THE ONES WE'RE OKAY DOING COS FOR.
SO JUST TO KIND OF HELP Y'ALL SORT OF LOOK THROUGH LIKE A REALISTIC EXAMPLE, UM, I ON THIS SHEET RIGHT HERE, UH, AND THIS IS NOT ALL ENCOMPASS JUST FOR YOU KIND OF LOOK THROUGH IT, KIND FEEL OUT A LITTLE BIT.
UM, IS THE NEXT FIVE YEARS AFTER THE, AFTER FY 22, 5 YEARS AFTER THAT CAPITAL PROJECTS THAT ARE NOT UTILITY PROJECTS, UM, THAT WE DON'T HAVE A CURRENT FINANCING SOURCE FOR.
IT COULD, COULD BE DEBT FUNDED, UM, OR PROBABLY ALMOST WON'T NEED TO BE DEBT FUNDED TO MAKE THEM HAPPEN.
UM, JUST SO YOU CAN KIND OF GET A FEEL FOR THE, THE TYPES OF PROJECTS THAT WE'LL BE LOOKING AT AND THAT MIGHT HELP JUST SEEING THAT REALITY OF IS THERE SOME REAL PROJECTS, HOW WOULD THAT FIT INTO THE POLICY? HOW WOULD THE POLICY MAKE SENSE BASED ON THE POLICY? WHAT'S SW DEAD? UH, STORMWATER.
AND AND THOSE ONES, UM, THINGS LIKE STORMWATER AND WATER AND SEWER, THAT'S WHERE THAT POLICY GUIDANCE IS ALSO HELPFUL TO STAFF BECAUSE THOSE ARE ONES WHERE YOU CAN ISSUE COS AND USE THE REVENUE FROM STORMWATER FUND OR WATER SEW FUND BUT YOU'RE STILL USING A CO.
SO IT'S STILL BACKED BY PROPERTY TAXES EVEN THOUGH THE FUNDING SOURCE IS NOT PROPERTY TAXES.
SO SCENARIO WAS THE MAJOR CENTER HOTEL.
SO THOSE ARE ONES WHERE WE, WE'LL NEED TO KIND OF GET INTO THOSE DISCUSSIONS AND FIGURE OUT THE BEST WAY TO ON THOSE.
UM, I'M TRYING TO REMEMBER VICTOR, HOW IS THAT KIND OF DESCRIBED IN THE POLICY? I GUESS WE HAVE THE CITY SHALL UTILIZE TAX SUPPORTED COS CLIENTS ONLY THOSE CAPITAL IMPROVEMENTS AND
UH, I MEAN TO ME THOSE STATEMENTS ARE KIND OF LIKE NO-BRAINER, THAT'S HOW WE SHOULD DO IT ANYWAY.
TO ME THE SUBJECTIVENESS OF HOW WE DO IT IS HERE, RIGHT? AND CHANGES BASED ON WHAT COUNCIL YOU HAVE.
YOU MAY HAVE AN EXTREMELY FISCALLY CONSERVATIVE COUNCIL THAT SAYS EVERY SINGLE ONE OF THESE SHOULD GO TO THE VOTERS BUT YOU HAVE A VERY ACTIVE LEGISLATURE TOO THAT MAY MAKE THOSE THEY WANT TO MAKE THOSE DECISIONS FOR.
THAT'S WHY LOOKING LONGER, LOOKING OUT LIKE FIVE YEARS IS, IS HELPFUL.
UM, HAVING TO MAKE THOSE DECISIONS EVERY YEAR.
SOME WATER STUFF OR UTILITY STUFF THAT COMES UP AND WE'VE KIND OF EVEN AS A STAFF HAVE SAID WE'RE GONNA LOOK FOR EVERY DEBT SOURCE WE CAN BESIDES COS ON UTILITY PROJECTS.
IF IT COMES DOWN TO IT AND THAT'S THE ONE WE REALLY NEED TO USE, THEN WE'LL BRING THAT TO Y'ALL.
BUT WE'RE LOOKING AT OTHER AVENUES TO DO THAT FIRST.
BUT FOR THE GENERAL OBLIGATION STUFF, I THINK LOOKING OUT LIKE A FIVE YEAR WINDOW YEAH YEAR WINDOW IS HELPFUL.
UM, AND THAT CAN ALSO BE BASED ON WE'VE GOT STRATEGIC PLAN THAT A FIVE YEAR WINDOW.
IT'S KIND OF NICE TO TIE THOSE THINGS, TIE THINGS TOGETHER.
UM, AND THE TIMING OF ALL THIS IS, IS REALLY HELPFUL BECAUSE THE DEBT AVAILABILITY WE HAVE, WE KIND OF LEND ITSELF TO NEEDING TO MAKE SOME NEW DECISIONS HERE IN THE FAIRLY NEAR FUTURE.
SO IT KIND OF MAKES THIS POLICY MORE PRACTICAL.
WELL DO Y'ALL WANNA GO AHEAD AND DISCUSS THE TABLE NOW OR KEEP GOING THROUGH THE POLICY? THE POLICY.
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YEAH.AND I REALLY, THERE'S NOT A LOT ELSE TO DWELL ON, UM, IN THE POLICY.
AND ARGUABLY IT IS JUST A STATEMENT OF FIRST OF ALL WHAT YOU'RE ALLOWED TO DO IN THE CONTEXT OF STATE STUDY YET.
AND SECONDLY, WHAT IS YOUR YOURSELF, UM, RESOURCE.
SO YEAH, IT'S KIND OF LIKE COMMON SENSE BUT IT'S JUST WORTH A STATEMENT.
I MEAN THINGS, BUT FOR INSTANCE, TO MAKE THE POINT THAT NO, WE WILL NOT USE THE ISSUANCE OF DEBT TO MANIPULATE THE TAX RATE.
IT SAYS IN CATEGORICALLY YOU'LL NOT DO THAT.
UM, YOU'LL NOT BORROW MONEY FOR OPERATING, UM, EXPENSES CAN ONLY BE FOR CAPITAL ASSETS.
YOU'RE NOT GOING TO BORROW MONEY AGAINST SOMETHING FOR LONGER.
AND IT'S USEFUL FINANCE OUR TRUCKS OVER A LONG PERIOD OF TIME, BUT NEVERTHELESS WE NO, WE ARE NOT GONNA DO THAT.
WE'RE NOT GONNA BUY A, YOU KNOW, TRUCK AND YEAR.
THINGS LIKE THAT DO NEED TO BE STATED.
AND ALSO ONE OF THE UM, UNDER DEBT MANAGEMENT, THAT LAST POINT, UM, I JUST FLAG UP WHEN WE LOOK AT HOW WE ARE ISSUING DEBT, THAT WE WILL TAKE ACCOUNT OF OVERALL AFFORDABILITY, UM, WHAT OUR DEBT RATIO ARE IN TERMS OF UM, CAPITAL, WHETHER TAXABLE VALUE OR WHATEVER.
SO IT'S JUST REFERENCING THAT.
SO WHEN WE PRESENT SOMETHING, PEOPLE WILL TELL YOU OUR DEBT CAPITAL WILL GO FROM THIS TO THAT AND THEN YOU CAN TAKE A VIEW.
SO WE REVIEW THIS ON A YEARLY BASIS AND LET'S SAY SOMETHING HAPPENS TO WHERE I'M, I'M GOING BACK TO THE TERM OF NOT BORROWING FOR OPERATING COSTS.
WE HAVE A, UM, WHAT IS IT? WE HAVE SO MUCH PUT BACK FOR FUND RESERVES, FUND RESERVE SITTING AT HOW MUCH RIGHT NOW? THREE MONTHS.
SO LET'S SAY SOMETHING HAPPENS TO WHERE WE DO NEED TO DO SOMETHING FOR OPERATING COSTS.
WE COME BACK AND REVIEW THIS, CAN WE REVIEW, WILL WE BE ABLE TO REVIEW THIS AT ANY TIME TO SAY THAT THIS DOESN'T COVER FUND BALANCE, FUND BALANCES ARE ARE BEING, UH, RESERVED.
SO YOU CAN USE THOSE IN THAT CONTEXT.
IT'S NOT, THAT'S NOT BORROWING.
YEAH, BUT I'M SAYING IF WE USE THE FUND BALANCE STUFF YES.
WORST CASE SCENARIO, LET'S SAY IT'S DEPLETED.
YEAH, THERE'S, THERE'S, I'M SAYING THE STATE ALLOWS SHORT TERM AN ISSUE ON THAT.
UM, ESPECIALLY DURING A DISASTER SITUATION.
I DON'T HAVE THE LONG TERM OBVIOUSLY, BUT THERE THERE'S VERY SHORT TERM NOTES ISSUE I THINK DURING DISASTER SITUATIONS IF IT CAME DOWN TO THAT.
BUT WE HAVE HEALTHY ENOUGH GROUPS.
YOU WOULD NEVER GET TO THAT FOR, IS THERE AN EMERGENCY OR DISASTER SCENARIO COVERED BY THIS PLACE? YES.
SPEAKING OF RESERVES, I FEEL LIKE, YOU KNOW, 120 DAYS IS MORE THAN ADEQUATE AND I THINK IT'S ABOVE WHAT OUR AUDITORS EVEN FIND EXCEPTIONAL.
RIGHT? IT'S USUALLY 90 AND I KNOW THIS YEAR WE, WE WANTED TO DO IT FOR OUR CREDIT RATINGS AND ALL THAT, BUT I DON'T WANT US TO GET IN THE HABIT OF JUST BANKING, STOCKING AWAY MONEY IF WE DON'T NEED IT, I'D RATHER USE IT.
AND SO SHOULD THERE BE SOMETHING IN THERE ABOUT RESERVES WHERE OUR POLICY IS, WE DON'T GO ABOVE 120 DAYS THAT IF WE HAVE THE MONEY, WE DON'T SOCK IT AWAY.
WE, WE SPEND IT ON CAPITAL PROJECTS.
SO THIS, THIS IS EXACTLY THE STRATEGY I'VE USED IN, IN THE CITY IS IN UTAH FOR FOR EXAMPLE IT USED TO BE AN 18% FROM BALANCE LIMIT, IT WENT UP TO 25% LATER.
SO WHAT CITIES DO AFTER THAT IS THEY HIT THAT CEILING AND THEN THEY PUT MONEY INTO CAPITAL PROJECTS.
SO SHOULD WE PUT THAT IN THE POLICY THAT THERE'S A CEILING AND ONCE WE HIT IT, STAFF IS DIRECTED TO USE THEM FOR THESE? THAT'S A GREAT IDEA.
I WOULDN'T THAT SURE PUT IT IN THIS.
YOU HAVE A FUN BALANCE POLICY.
BUT MAYBE WE WILL LOOK AT THAT NEXT TIME.
I DIDN'T EVEN KNOW WE HAD A FUND BALANCE POLICY.
WELL YOU SEE THE THING IS WE SAY IT, WE SAY WE DO AND UM, WE TALK TO YOU ABOUT IT AND YOU, IT'S REFERENCED IN THE BUDGET, IT'S WHERE IT'S REFERENCED AND ONE OF THE THINGS THAT I WANT TO DO ANYWAY, FILL OUT ALL THESE DIFFERENT POLICIES WE ALL PLACE.
SO THAT YOU, EVERYTHING PULLED TOGETHER, MAYBE THERE SHOULD
[00:20:01]
BE LIKE A WELCOME PACKET FOR FINANCE COMMITTEE MEMBERS AND IT HAS JUST A FOLDER WITH THESE DIFFERENT POLICIES AND THINGS FOR EVERY NEW MEMBER THAT COMES ON, EVERY NEW COUNCIL MEMBER AND THE JUST GONNA SIT COUNCIL.BUT DO WE HAVE TO HAVE SIX MONTHS? 'CAUSE ZERO RIGHT THERE IS SAME WAY.
I'D RATHER KNOCK SOME OF THESE PROJECTS OUT THAN JUST CONTINUE TO SAVE SIX MONTHS.
YOU SAID SIX MONTHS HUNDRED FOUR.
NO, I'M SORRY THAT'S FOUR MONTHS.
I'M THINKING SIX OR 20 PART, PART OF IT CURRENTLY TOO IS AGAIN, STILL, STILL COMING OUT OF THE PANDEMIC.
THERE WAS A, THERE WAS STILL KIND OF A CAUTION OF LET'S, LET'S BE AS CAUTIOUS AS WE CAN AT LEAST FOR ONE MORE YEAR.
MAKE SURE WE KIND OF GET THROUGH THINGS IN ARE GOOD PLACE.
UM, ALSO MAKING SURE THAT, YOU KNOW, WE ARE WORKING WITH Y'ALL ON A CIP AND THE FIVE YEAR PROJECTS AND AS IT'S KIND OF LINING UP WITH POTENTIAL DEBT ISSUANCE, YOU KNOW, THAT'S PART OF A STRATEGY THAT YOU CAN USE MOVING FORWARD NOW IS OKAY, MAYBE, YOU KNOW, MAYBE THERE'S PROJECTS WE WANT DO AND WE'RE 5 MILLION SHORT.
ONE OF THE OPTIONS WOULD BE TO USE SOME OF THAT FUND BALANCE HERE MOVING INTO FY 23.
SO LOOK AT IT MORE AS IT, IT'S GIVEN COUNCIL SOME FLEXIBILITY MOVING FORWARD.
UM, BUT I WOULD SAY WE WANTED, YOU OUGHT TO LOOK AT THAT POLICY ANYWAY BECAUSE RIGHT NOW IT'S I THINK 60 TO 90 DAYS.
UM, AND, AND WORKING WITH THE RATING AGENCIES, I THINK CLOSER TO A HUNDRED DAYS IS PROBABLY MORE REALISTIC.
120 PROBABLY IS TOO HIGH BUT, UM, 60 90 IS ALSO PROBABLY TOO FAR.
SO SOMEWHERE IN BETWEEN THERE'S A DI DISCUSSION WE NEED TO HAVE ON THAT.
I LIKE YOUR IDEA OF CAPPING IT.
UM, BUT I, I'M KIND OF ON THAT IN THAT CAMP THAT I THINK 120 DAYS IS, IS A GOOD PLACE FOR YOU TO CAP IT.
BUT THIS IS PART OF THE DEBT, THE RESERVE POLICY, NOT THIS ONE.
I THINK WE SHOULD DEFINITELY LOOK AT THAT.
IT CAN ALWAYS BE CHANGED IF OUR ENVIRONMENT CHANGES AND WE WANNA REMOVE THE CEILING.
BUT I THINK FOR NOW WE'RE SO HEALTHY.
I DON'T WHEN STAFF'S PREPARING THE BUDGET, THERE SHOULDN'T BE ANY GUESSWORK.
LIKE OKAY, WE HAVE ENOUGH IN RESERVES, WHERE CAN WE SPEND THIS MONEY? IT GIVES YOU REALLY CLEAR DIRECTION I THINK.
IS THERE ANYTHING WE'RE MISSING OUTTA HERE, YOU GUYS? UM, I MEAN I UNDERSTAND IT WAS, WE'RE TRYING TO KEEP IT REAL HIGH LEVEL.
UM, I WOULD LIKE TO SEE A LITTLE LESS HIGH LEVEL, A LITTLE MORE DETAIL MAYBE LISTING OUT, THIS IS A GO WITH THE A DEFINITION, THIS IS A CO AND THEN IT MAY LIST THE USE IS THE POLICY.
RIGHT? JUST TO JUST TO THIS DEFINITION.
THIS IS WHAT THESE ARE, I MEAN THE SAME THING WE DID WITH THE, ALRIGHT, WE, WE REFERENCED THE CAPITAL ASSET, BUT WHAT IS IT? AND I THINK IF WE'RE GONNA REFERENCE GOS AND COS AND REVENUE BONDS, JUST A DEFINITION, DEFINITION OF EACH OF KIND OF HOW IT'S, HOW WE'RE GONNA USE IT WITHIN THE CITY WOULD HELP ANYONE READING THE POLICY.
I, I, I THINK THINK THAT DO THROUGH THAT, THAT'S WHAT THIS IS TRYING TO DO IS CAPTURE THE THE VARIOUS TYPES OF FINANCING INSTRUMENTS AND RELATE THEM BACK TO THE TYPES OF FIRST OF ALL TYPES OF PROJECTS AND WHERE THE FUNDS COME FROM.
I WOULDN'T WANT TO, YOU DON'T HAVE TO DUPLICATE THE TABLE IN TEXT, BUT MAYBE LIKE, HEY, THE GO IS, IT'S GOTTA GO TO THE VOTE.
YOU KNOW, IT'S A VOTER APPROVED, JUST SOME, YOU KNOW, AND IT USES PROPERTY TAXES.
LIKE I SAID, AN APPENDIX IS A GREAT IDEA.
THE TABLE IN THE LEGISLATION, SAME THING.
WE DO WITH THE CAPITAL ASSETS.
YEAH, BECAUSE I THINK, I MEAN THE BIG THING'S GONNA BE THAT COLUMN ON THE TABLE, LIKE THE STATEMENT OF USING GOS OR COS FOR LONG-TERM ASSETS, WHICH HAVE BEEN DETERMINED TO BE ESSENTIAL TO THE MAINTENANCE OR DEVELOPMENT OF THE CITY.
WELL YOU'RE GONNA HAVE DIFFERENT OPINIONS ON WHAT'S ESSENTIAL.
AND, AND DR AND AND THAT'S OBVIOUSLY GOES TO MAKE THAT CALL
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AND THE CONTEXT OF AN OVERALL POLICY, THAT'S YOUR YOUR CHOICE.THAT'S WHY THIS IS JUST A TOOL.
AND I WOULD SAY IN TERMS OF THE, THAT STRUCTURE THAT KIND OF TALKS ABOUT THE, THE LENGTH OF THE, IT ALSO I PUT IN THERE THINGS LIKE NOT DOING BALLOON PAYMENTS, NOT UM, TAKING, UH, NOT WE CAPITAL FIRST COUPLE OF YEARS BECAUSE THAT'S HOW LONG IT TAKES TO GET IT ACTUALLY OPERATE.
BUT WE GENERALLY NOT DO THAT AND WE WOULD NOT BACK IN DEBT, YOU KNOW, PUSH, PUSH OFF TO THE, AND THEN THE OTHER ONE I REFERENCE IN HERE.
'CAUSE HOPEFULLY WE CAN DO THAT IN A FEW MONTHS.
AND THIS JUST REFERENCES THAT AND SAYS YOU, WE ACTUALLY HAVE TO BE, I HAVE TO BE ABLE TO PROVE, SAVE MONEY BY DOING IT.
AND IF, IF WE'RE THEN THIS IS THE THRESHOLD BETTER THAN PERCENT REFINANCE SOME CEOS, THEN IT TALKS ABOUT THE PROCESS.
YOU ABLE TO GO THROUGH A COMPETITOR PROCESS.
BUT WE MAY USUALLY NEGOTIATE AT ONE.
AND THEN THE LAST COUPLE OF POINTS JUST WE'LL USE, WE'LL USE RATING AGENCIES, REFERENCE AND OBLIGATIONS IN TERMS OF, SO THAT'S, THAT'S REALLY ALL THAT SAYS.
YEAH, ME, IT'S GONNA BE ANYTHING ELSE ON THE POLICY, NOT THE TABLE THAT YOU WOULD ADD OR WANNA SEE? I THINK THE DEFINITIONS ARE GOOD DEFINITIONS.
ON THE TABLE, WHAT ARE Y'ALL'S INITIAL THOUGHTS, AT LEAST ON HOW IT LOOKS RIGHT NOW? IS IT CLEAR? I THINK IT IS.
I MEAN, YOU GO DOWN AND THIS IS WHAT WE'RE GONNA DO AND THIS IS WHAT WE'RE NOT GONNA DO.
I DON'T THINK YOU CAN GET ANY SIMPLER THAN THAT.
AND THEN I LIKE THE PROJECT EXAMPLES IN THE BACK ON THE SECOND PAGE.
I'M SORRY, THE, UM, THE LAST ONE WHERE IT SAYS AN ARGUMENT COULD BE MADE THAT SOME OF THESE FACILITIES WOULD BE INCLUDED IN THE LIST ABOVE.
CAN YOU KIND OF EXPAND ON THAT A LITTLE BIT? SO YEAH, AND THAT'S, AND THERE'S, THERE'S THREE CATEGORIES THAT ARE PROBABLY NOT TOTALLY CLEAR.
AND I, I, SO THE QUESTION IS, DO WE TRY AND MAKE IT CLEAR IN THIS TABLE OR DO WE MAKE SURE THAT THERE'S A NOTE THAT IT'S GONNA HAVE TO BE A DISCUSSION ONCE THAT THAT ISSUANCE COMES UP, COUNSEL.
SO LIKE FOR INSTANCE, A WETLAND CENTER, SOMEONE MAY ARGUE, WELL THAT IS A PARK PROJECT THAT THAT SHOULD COUNT THAT YOU SHOULD BE ABLE TO DO, HAVE TO TAKE THAT TO, UM, IN REGARDS TO THE STATE LAW.
OTHERS MAY ARGUE THAT'S A, AND THAT'S KIND OF, I LOOKED AT IT FROM A MORE CONSERVATIVE STANDPOINT.
IT'S A NEW BUILDING THAT'S NOT PUBLIC SAFETY.
IT'S NOT A LARGE SEWER BUILDING.
UM, SO TO ME, IF YOU'RE BEING CONSERVATIVE, THAT SHOULD GO TO AT IT FROM THE CONSERVATIVE STANDPOINT.
BUT YOU PROBABLY COULD INTERPRET IT AND SAY, WELL NO, WE CAN USE COS FOR THAT UP FOR UP FOR DEBATE.
DO Y'ALL THINK WE SHOULD GET THAT GRANULAR IN OUR RECOMMENDATIONS OR LEAVE IT OPEN-ENDED? I THINK WE SHOULD LEAVE IT OPEN-ENDED THAT WAY IT'S UP FOR DISCUSSION.
MAKE A NOTE THAT THIS COULD GO FOR THIS OR THIS AND HAVE A DISCUSSION ON IT.
[00:30:05]
I THINK LEAVING IT, YOU CAN LEAVE IT OPEN-ENDED.I MEAN THESE ARE REALLY JUST EXAMPLES BECAUSE WE'RE GETTING INTO THE EXAMPLES THAT MAY OR MAY NOT COME UP.
SO I, I DON'T KNOW THAT WE NEED TO, WE'RE NOT GOING TO BE ABLE TO ADDRESS EVERY POSSIBLE EXAMPLE THAT WE MAY DECIDE TO.
SO YEAH, I THINK LEAVING THIS STATEMENT THERE BECAUSE WE'LL HAVE THE DISCUSS, I MEAN EACH PROJECT DISCUSSED AT THE TIME IT COMES UP, RIGHT? YEAH.
YOU KNOW, ANOTHER EXAMPLE OF WOULD IT FIT OR WOULD IT NOT? SO LET'S SAY YOU ALL SAW ONE OF THE OPTIONS FOR CITY HALL WAS LIKE A EXPANSION CITY HALL.
WELL IT'S A PRETTY SIGNIFICANT EXPANSION.
I THINK TECHNICALLY YOU COULD CONSIDER THAT AN IMPROVEMENT TO THE BUILDING.
SO STATE LAW YOU'RE PROBABLY COVERED, BUT FROM A POLICY STANDPOINT, YOU ALL MAY THINK THAT'S A PRETTY SIGNIFICANT ENHANCEMENT TO CITY HALL, YOU KNOW, THAT REALLY NEEDS TO GO TO THE FOCUS.
SO THERE ARE SOME OF THOSE THAT WE'LL JUST HAVE TO TALK ABOUT WHEN, WHEN IT COMES TO THAT TIME AND KIND OF MAKE THAT DECISION.
UM, YOU KNOW, THE, THE OTHER ONES.
SO GENERALLY, YOU KNOW, WE'VE SAID, HEY, IF THE PROJECT IS GRANT FUNDED AND WE'RE, WE'RE DOING OUR MATCHING, THAT THAT SHOULD BE A CO BECAUSE TAKES THE VOTERS NOW YOU'RE, YOU'RE RISKING LOSING ALL THAT MONEY.
YEAH, LET'S SAY IT'S RUSSELL PARK.
LET'S SAY THE COUNTY GIVES US 10 MILLION AND WE NEED TO COVER 10 MILLION ON OUR SIDE.
IS THAT THE TYPE OF PROJECT YOU WOULD STILL WANT TO GO TO THE VOTER OR WE SHOULD DO A A CO COURSE? THOSE ARE PROBABLY THE, THE TRICKIER ONES WHEN THEY COME UP, UH, TO MAKE DECISIONS ON EVERYTHING ELSE I THINK WILL FIT.
WHAT WE HAVE A BOND INITIATIVE AND IT HAS VARIOUS PROJECTS IN IT AND SOME OF THEM WOULD OTHERWISE
SO $8 MILLION TO DO SOME VARIOUS PROJECTS.
WELL THAT GOES, WHAT WE'RE TALKING ABOUT IS GOING BACK TO WHAT YOU HAVE ON COUNSEL AND WHAT THEIR OPINIONS ARE AT THAT TIME.
LEAVE IT UP FOR DISCUSSION AND LET THEM FIGURE IT OUT.
I MEAN, LIKE I SAID, THIS IS GONNA COME TO REALITY FOR Y'ALL.
UM, AND ONCE THOSE DECISIONS ARE MADE THAT WILL, THAT WILL CARRY YOU, YOU KNOW, PROBABLY FOUR OR FIVE YEARS IN TERMS OF MAJOR DEBT DISCUSSION.
SO I GUESS I WAS HOPING TO KIND OF BETTER DEFINE WHAT THIS COUNCIL THINKS IS A WANT VERSUS A NEED.
BUT IT SOUNDS LIKE Y'ALL THINK THAT THAT MAY PAINT US INTO A CORNER TOO MUCH AND THEN WE SHOULD JUST DISCUSS EVERYTHING.
YEAH, THERE'S NOT REALLY A LINE FOR AN AMENITY, RIGHT? LIKE, I MEAN YOU MENTIONED AN AMENITY WOULD PROBABLY BE A GEO, BUT JUST AN AMENITY DOESN'T REALLY FALL INTO ANY OF THESE.
SO I DON'T KNOW HOW TO THAT INTO HERE.
'CAUSE IT COULD BE, THIS IS WHY I REALLY WANT YOU JUST, I WANT THE COUNSEL TO UTILIZE THIS TO HELP THEM HAVE THOSE DISCUSSIONS, NOT MAKE THE DECISIONS FOR HIM.
I MEAN THIS IS PUTTING TO DO THAT, THIS IS PUTTING A BALL BACK IN OUR COURT AND THAT'S WHAT WE ULTIMATELY WANT IS FOR US TO SIT DOWN AND SAY, HEY, THIS IS THE DIRECTION WE THINK WE SHOULD GO AHEAD WHEN IT COMES TO A CO OR CO AND WE'RE GONNA STAND BY WITH DECISION.
WE'RE GIVING YOU ALL DIRECTION.
AT THAT POINT, I DON'T HAVE AN ISSUE WITH DISCUSSING IT.
IF IT'S THAT IMPORTANT THAT WE NEED TO HAVE A DISCUSSION ON IT AND IT'S GOING TO, IT IS WHAT IT IS.
SIT DOWN, DISCUSS IT AND WHATEVER MAJORITY OF COUNCIL DECIDES, THAT'S WHAT WE GO WITH.
BUT IF WE HAVE SOME DEFINITE THINGS DOWN HERE WHERE WE PAY OURSELVES UP TO A CORNER, UM, WE MAY BE SETTING OURSELVES UP A FAILURE.
THE ONLY THING ABOUT THIS TABLE, IT IS VERY OPEN-ENDED.
LIKE IF YOU LOOK AT THE LIST OF POTENTIAL PROJECTS, I COULD PROBABLY GO THROUGH THERE AND ALMOST A HUNDRED PERCENT OF 'EM COULD FIT INTO THE CATEGORY CO WANTED TO.
SO IN THAT REGARD, IT DOESN'T GIVE US A LOT OF, A LOT OF DIRECTION.
UM, YEAH, AND I KIND OF LENDS ME BACK TO THE POLICY
[00:35:01]
A LITTLE BIT.I KIND OF WONDER HOOKING AGAIN, LIKE YOU SAID, YOU NEED TO LOOK FOR FUTURE COUNCILS AND FUTURE CITY STAFFS.
I THINK WHERE WE WANT TO REALLY MAKE SURE IN THE FUTURE IS THAT YOU ALL ARE GETTING GOOD INFORMATION ON FUTURE DEBT ISSUANCES AS SOON AS POSSIBLE.
AND WHERE IT'S NOT, HEY, UM, WE NEED TO ISSUE, YOU KNOW, AND IT'S KIND OF IN THE POLICY, WE CAN'T DO THAT NOW, BUT WE REALLY NEED TO ISSUE $20 MILLION NEXT YEAR.
SO LET'S GO AHEAD AND MAKE SOME DECISIONS, UM, DOING WHAT WE'RE ABOUT TO DO.
OR WE LOOK FOR FIVE YEARS, YOU KNOW, AT THAT POINT IT DOESN'T MATTER WHAT'S WHAT'S IN THE POLICY BECAUSE COUNSEL, THE SEVEN OF YOU ARE WORKING TOGETHER TO SAY, OKAY, THESE ARE THE THINGS WE'D LIKE TO DO, UH, THAT WE'D LIKE TO USE DEBT FOR AND THIS IS WHAT WE WANT TO GO TO THE LAWYERS FOR.
THIS IS WHAT WE'RE
THAT'S, THAT'S THE BIGGER THING IS MAKING SURE THAT YOU ALL ARE HAVING ENOUGH TIME TO THINK BIG PICTURE.
AND THAT YOU'RE NOT GONNA PUT INTO A COURT THAT'S, THAT'S A LITTLE BIT OF, OF WHAT HAPPENED.
LET'S JUST SAY THE VOTERS DECIDE THEY DON'T LIKE ANYONE ON COUNSELING.
THEY'RE IN THE ELECTION, EVERY ELECTION TERM FOR THREE YEARS.
THE POLICY IS GOING TO HELP WHAT I'M THINKING, GIVE SOME DIRECTION TO NEW COUNCIL MEMBERS TO WHERE STAFF ISN'T JUST GOING ALL DOING WHAT THEY WANNA DO.
UM, I CAN TELL YOU THIS, BEING ON FINANCE COMMITTEE, IT TOOK ME A YEAR TO KIND OF GRASP EVERYTHING AT THAT POINT.
AND SOUNDS LIKE WE'VE ALL GONE THROUGH THAT.
NOT KNOWING, LESSEN THE LEARNING CURVE.
COULD LIST SOME SPECIFIC AMENITY TYPE PROJECTS.
IF YOU WANTED THOSE SPELLED OUT, YOU CERTAINLY COULD SPELL THOSE OUT.
IT COULD BE BASED SOMEWHAT ON WHAT WE ALL KNOW ON OUR HORIZON.
SO LET'S SAY FOR EXAMPLE, WE DECIDE THIS FIRST BOX NEEDS TO BE CHECKED, SELF-SUPPORTED NON-PROPERTY TAX REVENUE COUNCIL THINKS THEY SHOULD GO TO THE VOTERS.
LET'S JUST SAY WE DECIDE THAT SHOULD BE CHECKED.
SO WITH THE CONVERSATION FROM Y'ALL GO SOMETHING LIKE THIS, UM, WE HAVE AN OPPORTUNITY TO BUILD A HOTEL CONVENTION CENTER WHERE IT'S SELF-SUPPORTED, UM, BY POLICY.
Y'ALL WOULD LIKE US TO TAKE THIS DEBT TO THE VOTERS.
WE'D LIKE TO DISCUSS WITH YOU POSSIBLE ALTERNATIVES WHERE WE COULD DO COS IS THAT HOW THE CONVERSATION WOULD GO? SO Y'ALL WOULD TELL US UPFRONT, HEY, Y'ALL HAVE DECIDED ALREADY THAT THIS TYPE OF PROJECT WOULD GO TO VOTERS.
WE HAVE SOME ALTERNATIVES WE WANT YOU TO THINK ABOUT.
WELL ULTIMATELY I THINK AS, AS VICTOR, LET'S SAY WE STARTED OVER AGAIN WITH THE HOTEL PROJECT.
AS VICTOR'S WORKING WITH THE WHOLE FINANCE TEAM ON HOW WE'RE GONNA FUND THE PROJECT, HE'S GONNA TELL 'EM RIGHT AWAY, HEY COUNCIL SAYS WE'RE GONNA HAVE TO GO TO THE VOTERS EVEN IF IT'S SELF-SUPPORTED DEBT.
SO GUYS, EITHER WE NEED A DIFFERENT MECHANISM OR WE'RE GONNA HAVE TO GO TO COUNCIL AND HAVE THAT QUESTION CONVERSATION.
NOW, MOST OF WHAT WOULD FALL IN THAT CATEGORY IS GONNA BE LIKE UTILITY TYPE PROJECTS.
BUT THAT THE HOTEL, THAT IS A GOOD EXAMPLE.
WELL, DO Y'ALL HAVE ANY SUGGESTIONS ON WHERE YOU WOULD PUT AN X WHAT YOU WOULD WANT TO SEND TO THE VOTERS? I'LL BE HONEST WITH YOU.
I WANT TO TAKE TIME TO YOU WANT SOME TIME TO DIGEST IT? YEAH, ME TOO.
SO IDEALLY I WOULD LIKE FOR THEM TO PRESENT A COMPLETED RECOMMENDATION TO COUNCIL.
UM, SO WE CAN EITHER GET BACK TOGETHER WITH OUR SUGGESTIONS OR Y'ALL CAN JUST FEED 'EM TO VICTOR.
HOW, HOW SOON DO YOU WANNA PRESENT WITH COUNSEL? WELL, UM, I'D LOVE TO COMPLETE IT THIS YEAR.
BECAUSE I KNOW THAT THEY WANNA START TALKING ABOUT A BOND PROJECT AND IT'S CRITICAL WE KIND OF GET THIS IN PLACE AND ADOPTED BEFORE THESE CONVERSATIONS HAPPEN.
SO, UM, REMEMBER YOU HAVE ONE MEETING TO NOVEMBER OR ONE MEETING, WHAT'S THE TIMEFRAME ON THOSE DISCUSSIONS IF WE NEED TO START DISCUSSING, CAN WE WORK BACKWARDS AND WE YEAR TIMEFRAME? ARE WE AGAIN, SHORTER AND SHORTER? BECAUSE, SO IF YOU WERE LOOKING AT A BOND ELECTION, THAT WOULD BE NEXT NOVEMBER, YOU WOULD HAVE TO HAVE QUALIFY
[00:40:01]
READY BY NEXT AUGUST.YOU WOULD NEED A BOND COMMITTEE UP AND EARLY.
SO REALLY MIND GET NOT THE RETREAT RETREAT IN DECEMBER.
THAT PROBABLY IS ONE OF THE, SHOULD BE DISCUSSED THERE OF TIME BECAUSE WE'LL BE RUNNING FOR A DAY AND A HALF.
SO PRESENT A COMPLETED RECOMMENDATION TO COUNCIL AFTER THE RETREAT.
DOESN'T LEAVE US MUCH TIME TO ADOPT IT AFTER THAT.
WELL, YEAH, IT, IT'D BE CLEANER TO HAVE ADOPTED AND THEN HAVE THAT TOOL TO USE DURING THE DISCUSSION AT THE RETREAT.
RETREAT DISCUSSION AT THE RETREAT.
WAIT, YOU, YOU'VE GOT YOUR POLICY IN PLACE.
YOU GUYS, YOU GUYS HAD FIVE MORE MEETINGS LEFT THIS YEAR, SO, UH, I THINK THERE'S TIME TO IT.
YOU COULD SHOOT FOR THE LAST MEETING IN OCTOBER.
LET'S TAKE TWO WEEKS TO LOOK AT IT THOUGH.
YOU ALL WANT TO GET BACK TOGETHER AGAIN? OKAY.
CAN WE ALSO GET A COPY OF THE RESERVE POLICY? WHAT'S IT CALLED? THE FUND BALANCE POLICY.
YEAH, WE'LL TAKE A LOOK AT THAT AND BRING IT BACK TO THE NEXT MEETING.
ARE THERE ANY OTHER FINANCIAL POLICIES OTHER THAN MAKING THE DEBT POLICY AND THE FUND BALANCE ON THE, YOUR INVESTMENT STRATEGY, WHICH IS GOING TO THE NEXT MEETING AFTER.
SO DO YOU WANT TO GET BACK TOGETHER AGAIN? I THINK THEY SAID TWO WEEKS.
HOW'S YOUR WORK SCHEDULE IN TWO WEEKS? WE CAN GET IT.
THAT'S HUNTING SEASON AND I DON'T HUNT BEFORE COUNCIL MEETING.
TMLI SAY TML IS THAT WEEK FROM THIRD THROUGH THE SAY THURSDAY, FRIDAY THE FIRST WEEK OF OCTOBER? YEAH.
WHY NOT? WE CAN, I'M AVAILABLE THE 12TH, 13TH AND 14TH.
AT 14TH AT THE COUNCIL MEETING.
TUESDAY, WEDNESDAY AND THURSDAY.
Y'ALL WANNA MEET AT FOUR 30 ON THE 14TH BEFORE COUNCIL.
HOPEFULLY WE'RE IN PRETTY MUCH AGREEMENT AND WAY IT WON'T TAKE THAT LONG THAT I CAN MAKE IT BACK, DO YOU THINK? SURE.
I'M, I MEAN I'M, IT WAS THE PRIOR TWO WEEKS.
I KNOW IT'S THURSDAY, THE EARLIEST JUST THE 14TH.
IT JUST TO BE VERY BANAL, BORING LOGISTICS OF WHERE WE'RE GONNA HAVE.
MAYBE A LITTLE BIT MOREY IF YOU'RE OKAY WITH THAT.
AND THEN THE ACTION ITEM FOR US IS WE COME BACK WITH WHICH BOXES SHOULD BE CHECKED OR IF YOU WANT ANOTHER BOX, IF THERE'S A BOX FOR WHATEVER IT'S CALLED, PROBABLY THINGS.
THE THINGS LIKE GOLF COURSES AND BATTLE THAT WE, THOSE TYPES OF THINGS.
THE, BECAUSE THE OTHER THING I'M THINKING IS WE HAVE THIS COLUMN OF RECOMMENDED BY COUNCIL POLICY, BUT THEN, I MEAN IF YOU'RE JUST GONNA COME DOWN, FIND THE, THE WHATEVER PROJECT YOU'RE LOOKING AT AND KIND OF GO, GO ACROSS AND SEE WHAT'S, WHAT DEBT SOURCES ARE AVAILABLE REALLY GEOS ON ALL OF THESE, RIGHT? WE COULD, WE COULD RECOMMEND IT, BUT THEN IT'S SO AVAILABLE AS WELL.
I MEAN WE COULD GO, WE, WE, WE MAY NOT SAY ALL ROAD PROJECTS MUST GO TO A GO, BUT IT'S DEFINITELY AN OPTION.
SO WE COULD, WE COULD BUNDLE A BUNCH OF ROADWAY PROJECTS TOGETHER AND I MEAN AND THAT'S, THAT'S
[00:45:01]
RIGHT.YOU COULD TAKE THE DECISION THAT, YOU KNOW, OKAY, YOU COULD DO CEOS FOR 90% OF THIS, BUT THE 10% YOU COULDN'T.
SO PUT IT ALL TOGETHER AND BOOK TO BOARD WITH ALL OF THEM.
RIGHT? SO IT MAY NOT, I MEAN EACH PROJECT MAY NOT BE, THIS IS A GEO, THIS IS A GEO, BUT TOGETHER.
SO I, I DON'T KNOW IF THERE NEEDS TO BE AN, AN ADDITIONAL COLUMN OR WE, BECAUSE IF WE'RE JUST LOOKING AT, THESE ARE YOUR FUNDING, THESE ARE YOUR OPTIONS FOR FUNDING MECHANISMS AND REALLY A GOS ON ALL OF THEM.
YEAH, KIND OF HOW I, HOW WE NEEDED TO ENVISIONED IT WAS THE, THE THREE COLUMNS ARE OPTIONS.
AND THAT SECOND COLUMN IS MORE FROM A STAFF STANDPOINT.
HEY, HERE'S, HERE'S WHAT COUNCIL DESIRES FOR THESE PROJECTS.
SO LIKE I SAID, AGAIN, IT MAY BE, MAY BE THAT YOU CHECK PARKER TRAIL, BUT WE COME TO YOU AND ARE LIKE, HEY, HERE'S THE ACTUAL PARK TRAIL PROJECT AND BECAUSE IT'S A RECOMMENDATION AND Y'ALL ARE LIKE, WELL IT DOESN'T NECESSARILY NEED TO GO TO THE MOTORS, BUT THE, THESE STAFF HAS HAVE BROUGHT TO, COULD YOU CREATE SOME ADDITIONAL CATEGORIES, NOT ONLY COMMUNITY AMENITIES BUT OTHER CIRCUMSTANCES WHEN YOU THINK THAT A GEO WOULD BE WILLING BE A LEVEL OF INVESTMENT COULD BE A LEVEL OF, UH, CITIZEN INTEREST.
UM, WHEN THINGS ARE, UM, VERY CONTROVERSIAL OR VERY FORCED SENSITIVE, IT COULD BE SOMETHING LIKE THAT WHERE YOU DIDN'T ISSUE A CO FOR SOMETHING LIKE THAT BECAUSE OF THE POLITICAL REALITIES.
HOW WOULD YOU DEFINE THAT FOR THIS CHART THOUGH? WELL, THE, THE GOLF COURSE WAS ACTUALLY VOTED DOWN AND WE'RE HAVING PEOPLE BRING IT BACK UP AGAIN.
I WOULD MOST DEFINITELY SAY IF IT WAS VOTED DOWN, THAT WAS SOMETHING THAT TO BE VOTED ON AGAIN, IT NEEDS TO BE VOTED ON AGAIN RATHER THAN WE JUST TURN AROUND AND SAY, WELL WE'RE GONNA DO IT BECAUSE WE WANT TO DO THIS.
BECAUSE WE WOULDN'T, WE COULD OBVIOUSLY SAY, WELL THIS IS A PARK PROJECT, YOU KNOW, OR SOMETHING.
IF WE SUICIDE, THE COUNCILS WOULD, THE COUNCILS AT THAT TIME WOULD KNOW WITH THE HOT BUTTON ISSUES ARE GOLF COURSE IS GONNA BE ONE FOR US.
BATTLESHIP, WE ALL RECEIVED THAT EMAIL ON THE BATTLESHIP WANTING US TO TAKE A STAND ON IT I'S GONNA BE ANOTHER ONE.
WHAT WOULD Y'ALL CALL THIS BOX? THAT BOX NOT CONTROVERSIAL OR HOT BUTTON.
WHAT WOULD YOU CALL THAT CATEGORY? UM, CALL IT POLITICAL SUICIDE.
HE IS, UM, I WOULD SAY, UM, HE IS, LET'S TAKE PROJECTS OF, OF HIGH COMMUNITY INTEREST.
SOMETHING ALONG THAT LINE, SOMETHING LIKE THAT.
AND THEN A BOX WITH A PRICE TAG.
LIKE IF IT GOES ABOVE THIS THRESHOLD, IT WOULD TRIGGER MAYBE A GO.
WE AT LEAST THE DEPARTMENT DISCUSSION ON IT.
GARTH ROAD IS GONNA COST US WHAT, 30 MILLION, 38 MILLION TOTAL PAY FIRST TWO BASIS.
UH, 45 MILLION FOR THE FIRST TWO BASIS.
AND I MEAN, FROM END TO END IT'S SEVEN AND THE, UH, PUBLIC SAFETY WILL THE 60 66.
66 REMEMBER, BUT YEAH, BUT I'M JUST THINKING WHAT WOULD, IN MY MIND, WHAT WOULD I WANT TO HAVE A DISCUSSION ON AND WHAT PRICE THRESHOLDS ARE REALLY DIFFICULT BECAUSE AGAIN, MY, MY STANCE HAS ALWAYS BEEN YOU, YOU DON'T TAKE ANYTHING TO A VOTE WHERE YOU CANNOT AFFORD A NOTE.
SO IF IT'S GONNA CAUSE HARM TO YOUR CITIZENS AND HELP SAFETY AND WELFARE CONCERNS BECAUSE YOU DON'T DO THE PROJECT EVEN THOUGH IT'S ABOVE A CERTAIN THRESHOLD, YOU CAN'T TAKE IT TO A GO.
WELL MAYBE LOOK AT THE PS THEN THIS COULD BE A, A HUGE LIFT STATION FOR EXAMPLE.
IT MAY EXCEED THAT THRESHOLD, BUT I UNDERSTAND.
SO WE DON'T, WOULDN'T IT STILL JUST BE A DISCUSSION? SO IT WOULD BE LIKE, HEY, THIS LIFT STATION GOES OVER THE THRESHOLD THAT Y'ALL RECOMMENDED, BUT WE DON'T RECOMMEND GOING TO GO.
SHOULD BE AT LEAST YOU CAN CONSIDER.
WHAT ABOUT LENGTH OF DEBT? IS THAT EVER, UM, A CONSIDERATION WHETHER WE WANT TO TAKE ON A DEBT THAT'S LIKE 20, 30, 50 YEARS LONG OR IS THERE, IS THERE LIKE A SET AMOUNT THAT IS USUALLY STANDARD WHEN Y'ALL ISSUE DEBTS? YES.
[00:50:01]
THAT IS REFERENCED IN THERE THAT I, I'VE SAID THAT WE, WE DON'T NORMALLY ISSUE BONDS BEYOND 25.OUR NORM IS 20, BUT IT'S ALWAYS RELATED TO, TO THE LENGTH OF THE ASSETS.
LIKE, SO WOULD IT BE HELPFUL TO HAVE A BOX THAT SAYS ANY DEBT ABOVE 25 YEARS WOULD REQUIRE A VOTER APPROVAL OR ABOVE 20? OR IS THAT WELL, YOUR POLICY LOOKING THROUGH 25, SO WE JUST WOULDN'T EVEN DO IT.
THE POLICY, WE WOULDN'T EVEN DO IT.
I, I THINK STATE LAW CAPS IT AT SOME NUMBER OUT.
SO THERE'S I THINK ENOUGH LIMITATIONS THERE.
AND IF IT SAYS 20 TO 25 AT 20, LET'S DISCUSS IT.
ANY DEBT ISSUE? YOU MEAN YOU ULTIMATE DISCUSS ALL GONNA SAY EVERYTHING.
IF IT, IF IT, IF IT IS GOING TO GO ABOVE 20, WE HAVE 20 TO 25 IN HERE.
RIGHT? IS THERE STATE LAW THAT, UH, REGULATES HOW LONG WE CAN ISSUE DEBT FOR? I I THOUGHT THERE WAS A NUMBER.
I DON'T REMEMBER EXACTLY HOW MANY YEARS IT IS, BUT BECAUSE IF IT IS THEN YOU KNOW IT, IT'S FINE.
UM, I WAS JUST THINKING LIKE PEOPLE MAY NOT WANT US TO BURDEN THEM FOR THE NEXT 50 YEARS FOR THE BATTLESHIP TEXAS OR SOMETHING, YOU KNOW, AND SO THEY MAY SAY, HEY, I LIKE THAT PROJECT BUT I DON'T WANT THIS DEBT FOR 50 YEARS.
BUT IF THE STATE ALREADY REGULATES HOW LONG WE CAN ISSUE DEBT FOR THEN IF COUNTY CANNABIS, THE PRIMARY REASON FOR IT, I THINKING OUT DEBT IS, IS OFTEN NOT DRIVEN BY CASH FLOW OR AFFORDABILITY, BUT BY THIS CONCEPT CALLED GENERATIONAL EQUITY.
AND, AND YOU GO BACK TO THE LIFE OF THE ASSET WHERE THE COUNCIL'S DECIDED, HEY, WE DON'T WANT TO LAY THE WOOD ON THE RESIDENTS, UH, HERE, WE WANT EVERYBODY TO HAVE HELP PAY FOR THAT OVER FOR A LONG PERIOD.
'CAUSE THIS IS A LONG TERM ASSET.
SO THAT WOULD BE YOUR MAIN MOTIVATION IS GENERATIONAL EQUITY.
WE HAVE TO PAY FOR SOMETHING THAT SOMEBODY'S GOING 70 YEARS IN THE FUTURE.
CAN WE JUST KIND OF REVIEW REAL QUICK? UM, WE'RE GONNA MEET IN TWO WEEKS.
Y'ALL GONNA ADD TWO BOXES, ONE FOR A DEBT AMOUNT AND ONE FOR PROJECTS OF HIGH COMMUNITY INTEREST.
THAT'S OUR, YEAH, WE'RE GONNA ADD DEFINITIONS AS LIKE AN APPENDIX TO THE POLICY AND THEN THE THREE OF US ARE GONNA COME TO THAT MEETING WITH WHAT BOXES WE WOULD CHECK IN.
THE SECOND COLUMN IS, YEAH, IF THERE, IF THERE'S ANY OTHER BOXES YOU WANT TO ADD OR IF YOU WANT TO GET SPECIFIC AT ALL ON ANY PARTICULAR PROJECTS THAT FIT INTO THAT HIGH COMMUNITY CATEGORY AS EXAMPLES.
I THINK BATTLESHIP ISN'T A GOOD EXAMPLE.
AND, AND DON'T WE HAVE SOMETHING IN HERE THAT SAID HISTORICAL TREASURE? WELL THAT'S A, THAT'S A, IT'S NOT ON THE TABLE.
TREASURE, CAN WE GET EMAIL TO US SO I CAN GOLF AND IT'S ON THE BATTLESHIP TEXT.
THE OTHER THING WE'LL DO, JUST, JUST SO Y'ALL HAVE IT NEXT TIME IS UM, UPDATE THIS SHEET.
WE HAD OUR, UM, FINANCIAL ADVISORS RUN THE DEBT BILL FY 26 MIGHT HELPFUL TO F 27.
SO, UM, BECAUSE THAT WOULD ULTIMATELY IS REALLY HOW IT WOULD WORK.
YOU WENT TO THE VOTERS IN NOVEMBER OF 22, THAT DEBT WOULDN'T REALLY BE ISSUED AND FACTORED INTO THE BUDGET UNTIL FFY 24.
SO AT THAT POINT YOU GOT 24, 25, LIKE A FOUR YEAR WINDOW KIND OF MAKES SENSE.
THAT WOULD FIT INTO THE NEXT IMAGINE BAY TOWN.
SO, UM, WE'LL, WE'LL FILL THAT BOX IN BEFORE NEXT TIME TOO, JUST SO OKAY.
YOU CAN SEE IT AND THE, UM, FUND BALANCE POLICY.
IF Y'ALL COULD MAYBE EMAIL THAT TO US AHEAD OF TIME SO WE CAN LOOK AT IT AND BE PREPARED TO DISCUSS IT AT THE
YEAH, JUST SAY IT'S, IT'S GET BACK IN UTAH.
I KNEW THESE CITIES, ESPECIALLY THESE SMALL CITIES,
[00:55:01]
ONE THIS, THAT WAS TOUGH.THERE WAS SOMETHING, THEY HAVE THIS HUMONGOUS COMMERCIAL CORRIDOR GOING THROUGH THE CITY OF ABOUT THOUSAND AND IT CONNECTED OBJECT TO THE SALT LAKE AREA AND IT HAD EVERYTHING YOU CAN IMAGINE A LOT IT, AND IT LAID ALL, IT LAID RIGHT IN THAT LITTLE SIGNAL.
AND THEY HAD THIS, YOU KNOW, OF COURSE THEY HAD THEIR 18.5% FUND DOWN.
IT'S JUST BECAUSE THEY'RE JUST CHECKING WHAT ARE THEY GONNA SPEND IT ON.
THEY WERE JUST GETTING ALL THIS POINT OF SALE SALES TAX FOR HERE.
THEY'RE JUST CHECKING IT, NOT SPENDING IT.
ANY FINAL THOUGHTS, COMMENTS, QUESTIONS WITH ALL ITEMS ON THE EXHIBIT HAVING BEEN ADDRESSED? UH, DURING THIS MEETING, IT 12.