Dec 12, 2024 BAYTOWN FINANCE COMMITTEE

I

[00:00:01]

SHE'S LIKE, STOP THERE, BE A QUIZ.

YOU HAVE TO NAME EVERYBODY IN THIS ROOM.

I CAN NAME.

I DIDN'T SEE HIM.

I WAS LIKE, WHATEVER.

[ CITY OF BAYTOWN3 NOTICE OF MEETING BAYTOWN FINANCE COMMITTEE THURSDAY, DECEMBER 12, 2024 4:00 P.M. BAYTOWN CONFERENCE ROOM, CITY HALL 2401 MARKET STREET, BAYTOWN, TEXAS 77520 AGENDA CALL TO ORDER AND ANNOUNCEMENT OF QUORUM ]

Y'ALL READY? OKAY.

IT IS FOUR OH TWO.

I WILL CALL THE MEETING TO ORDER.

WE DO HAVE A QUORUM.

WE ARE IN, UH, BAYTOWN CONFERENCE ROOM AT CITY HALL.

UH, NOW ORDER HIDE.

SCOTT, SIT PAPER.

OUR FIRST ITEM, OUR FIRST ITEM IS NUMBER TWO.

CITIZEN COMMENTS.

[2. CITIZEN COMMENTS Notice is hereby given that in accordance with the Texas Open Meetings Act, Texas Government Code, Chapter 551, prohibits the Baytown Finance Committee from discussing, deliberating, or considering, subjects for which public notice has not been given on the agenda. Issues that cannot be referred to the administration for action may be placed on the agenda of a future Baytown Finance Committee Session.]

THAT'S OKAY.

THAT'S OKAY.

WE JUST FELT NUMBER ONE HAD TOO MUCH PRIORITY FOR ALL THESE YEARS WHEN WE WERE STARTING WITH NUMBER TWO.

AND THAT'S OKAY.

I GOT A COMMENT ON THIS.

KEEP GOING.

ALRIGHT, NUMBER THREE,

[a. Consider the approval of minutes of the Finance Committee Meeting held August 22, 2024.]

CONSIDER THE APPROVAL OF MINUTES OF THE FINANCE COMMITTEE MEETING HELD AUGUST 22ND, 2024.

IF Y'ALL DON'T HAVE ANY COMMENTS, I SECOND.

ALL RIGHT.

MOTION A SECOND.

ALL IN FAVOR, PLEASE SAY AYE.

AYE.

AYE.

CARRIE, FOR A

[a. Discuss the City of Baytown purchasing policy.]

OKAY.

SO, UM, IF YOU RECALL, UM, THE MAYOR MENTIONED ABOUT HAVING A PURCHASING POLICY THAT WAS BAYTOWN FIRST.

AND SO I SENT OUT THE POLICY, I DON'T KNOW IF YOU HAD TIME TO READ IT OR NOT, BUT, UM, I WANTED YOU TO SEE IT BECAUSE THIS WAS ONE OF OUR NEWEST POLICIES SINCE WE HAD A CHANGE IN, UH, ADMINISTRATION AND FINANCE.

UM, AND THEN JUST TALK ABOUT OUR LIMITATIONS IN TRYING TO DO BAYTOWN FIRST.

AND SO THE FIRST THING IS I CAN GO TO , IS THAT OUR CURRENT POLICY IS BEST, UH, BASED ON THE BEST VALUE APPROACH.

SO WE, UM, LOOK AT THE QUALITY OF GOODS AND SERVICES, THE COST, PAST PERFORMANCE, AVAILABILITY, YOU KNOW, WHETHER THEY CAN DO THE JOB OR NOT, AND THEIR REPUTATION.

UM, IN ORDER TO, BASED ON THE LOCAL GOVERNMENT CODE, WE HAVE LIMITATIONS ON WHAT WE CAN DO WITH THIS.

SO IF WE CHANGE TO LOWEST BIDDER, IF WE, WE WOULD HAVE TO CHANGE OUR POLICY TO LOWEST BIDDER.

AND EVEN IF WE DID THAT, WE STILL WOULD BE LIMITED ON JUST GIVING THE, UM, BID TO A LOCAL VENDOR.

AND THAT'S BECAUSE THERE ARE RESTRICTIONS.

SO LIKE IF YOU HAVE A UNSEALED BID, YOU CAN, YOU HAVE TO HAVE IN WRITING THAT IS BEST FOR THE CITY.

THERE IS SOME, UM, ECONOMIC ADVANTAGE TO GIVING IT TO THEM.

THEY'RE GONNA INCREASE TAX REVENUE, SOME THINGS ABOUT EMPLOYMENT, UM, BASED ON A LOCAL GOVERNMENT CODE.

AND IF IT'S UNSEALED, THERE'S A 3%, UH, GAP.

BUT THEN IF YOU DO A SEALED BID, IT IS A 5% GAP.

AND YOU ALSO STILL HAVE TO HAVE IN WRITING THAT IS BEST FOR THE CITY THAT THEY'RE GONNA BRING IN ECONOMIC DEVELOPMENT, THEY'RE GOING TO INCREASE EMPLOYMENT, THINGS OF THAT NATURE, UM, IN ORDER TO JUST GIVE IT TO A LOCAL BID.

AND SO WHAT WE ARE TRYING TO DO IS ACCOMMODATE, OR JUST PRESENT IT TO YOU.

AND, UM, AND ALSO I NEED TO MENTION THAT THERE IS A PROF, UH, PROFESSIONAL, UH, SERVICES LIMITATION WHERE WE CANNOT DO THAT AT ALL FOR THOSE BECAUSE YOU ARE REQUIRED, REQUIRED TO DO IT BASED ON QUALIFICATIONS BECAUSE OF THE NATURE OF THE JOB.

SO WE ARE VERY LIMITED IN BEING ABLE TO DO THIS.

THERE ARE ALSO LIMITATIONS IN RELATION TO CONSTRUCTION SERVICES AND WHEN YOU'RE PURCHASING, UH, CERTAIN TANGIBLE GOODS OVER, UH, 500,000.

AND SO WE WOULD HAVE TO REDO OUR POLICY TO TRY TO CATER TO ALL THOSE DIFFERENT SCENARIOS.

SO I JUST WANTED TO PRESENT THAT THAT IS NOT AS SIMPLE, UM, AS REQUESTED.

AND THEN WE JUST NEED TO TALK IT THROUGH.

WE WERE TRYING TO, UM, COME UP WITH AN OPTION OF MAYBE RIGHT NOW WE DO THE BEST VALUE APPROACH OF GIVING, UM, A CERTAIN PERCENTAGE OF POINTS TO THE LOCAL BIDDER SO THAT THEY HAVE, UM, A LITTLE MORE, UM, THEY HAVE A GREATER CHANCE BASED ON ALL THE OTHER CRITERIA OF MAYBE POTENTIALLY GETTING THE BID.

IF THAT'S AN OPTION, AND THAT'S WHAT THESE TWO OPTIONS ARE, IS WE CAN ALLOCATE ADDITIONAL POINTS FOR A LOCAL BIDDER IN THE EVALUATION PROCESS, WHICH RIGHT NOW WE EVALUATE ALL THINGS I MENTIONED PREVIOUSLY, OR WE CAN UPDATE IT TO THE LOWEST BIDDER.

BUT THEN WE'RE STILL LIMITED ON WHAT WE'RE ABLE TO DO WITH THAT OPTION BECAUSE THERE ARE REALLY SOME STRICT GUIDELINES IN THE TEXAS LOCAL GOVERNMENT ELSE.

YEAH.

UNLIKE THE POINT SYSTEM.

BUT THAT STILL MAY LIKE, SO IF THEY'RE TWO POINTS AWAY FROM A BIG COMPANY, THAT CAN PRETTY MUCH DO IT ALL.

TO ME, THAT KIND OF MAKES IT LOOK BAD

[00:05:01]

UM, AND, UM, I DEFINITELY AM ONE OF THE ONES THAT ASK TO SEE HOW WE CAN BENEFIT FROM OUR SMALL BUSINESSES.

UH, MAYBE IF IT'S DEPENDING ON SIZE OF PROJECTS, IF THAT'S SOMETHING WE CAN ENTERTAIN OR IF LET'S SAY WE'RE OPENING IT UP AND PART OF THE POINT SYSTEM THAT GOES TO EVERYBODY AND NOT JUST THE LOCAL BIDDER.

SO IF WE HAVE X, Y, Z BIG COMPANY BIDDING ON A PROJECT AND THEY PUT IT AS PART OF THEIR BIDS THAT HEY, WE'RE GOING TO DO LIKE A CERTAIN AMOUNT OF BUSINESS WITH X, Y, Z COMPANY THAT IS LOCAL, UM, IF THEY GET ADDITIONAL POINTS THERE.

UM, AND SO I I, I DON'T KNOW IF THAT'S SOMETHING THAT CAN HAPPEN, BUT I DO WANNA BE WARY, AND AGAIN, I'M THE ONE THAT KIND OF PUSHED FOR THIS, BUT I I, I'M WARY OF SOME BIG COMPANY COMING BACK AND SAY, WELL, JUST BECAUSE THEY'RE LOCAL, THEY GOT THOSE ADDITIONAL POINTS AND THEY GOT THE JOB.

SO YEAH.

OPEN TO OTHER COMMENTS AND THOUGHTS.

I LIKE THE IDEA BEHIND THE BEST VALUE APPROACH.

UM, YOU KNOW, I, I DON'T LIKE THE IDEA OF TRYING TO GO WITH THE LOWEST BIDDER.

'CAUSE SOMETIMES YOU MAY BE MISSING OUT ON, YOU KNOW, PEOPLE BID SO LOW THAT THEY DON'T, YOU KNOW, CONSIDER THOSE OUTSIDE, UM, VARIABLES THAT WILL COME IN THE CONSTRUCTION JOB.

AND SO I, I PREFER I'M LEAVING FORCE WHAT Y'ALL, Y'ALL ARE SUGGESTING WITH THE BEST VALUE APPROACH TO, TO GET THE BEST VALUE FOR CITY'S DOLLAR.

AND THAT'S WHAT WE ALREADY FOLLOW.

MM-HMM .

YES.

THAT'S, THAT'S WHAT WE YEAH.

BUT DO Y'ALL WANNA SET UP POINTS, ADDITIONAL POINTS FOR LOCAL BIDDERS? YES.

I WOULD PREFER NOT TO.

UH, I JUST, I MEAN THAT'S, IT'S NO LONGER THE BEST VALUE IF YOU ASK ME.

I MEAN, IN MY OPINION I UNDERSTAND GIVEN, I MEAN IF YOU WANT TO GIVE 'EM POINTS, BUT, UM, THERE'S NO VALUE IN THAT.

UH, OBVIOUSLY I WANT TO USE, I MEAN, I THINK WE ALL DO AND WE ALL WANT TO USE LOCAL COMPANIES.

HOWEVER, WE CONTINUE TO TIGHTEN THE, THE PURSE STRINGS MM-HMM .

UM, AND TO GO WITH SOMEONE WHO POTENTIALLY COSTS MORE JUST BECAUSE THEY'RE HERE, I DON'T KNOW THAT I'M COMFORTABLE DOING THAT.

I MEAN, WE COULD SAY IF EVERYTHING'S EQUAL RIGHT.

TO A OUTSIDE COMPANY VERSUS A INTERNAL, LOCAL BUSINESS, THAT THE PREFERENCE GOES TO THE LOCAL BUSINESS POTENTIALLY BECAUSE THEY'RE EQUAL.

RIGHT? IF THEY'RE EQUAL, YES.

YES.

ABSOLUTELY.

WE CAN DEFINITELY MAKE SURE THAT'S IN THERE.

'CAUSE THAT MAKES SENSE.

RIGHT.

UM, BUT AS FAR AS ANY OTHER GUIDANCE THAT YOU GUYS WOULD LIKE US TO INCORPORATE IN THERE, UM, I'M NOT REALLY SURE WHERE YOU GUYS ARE LEANING.

IS THIS FOR BOTH, UM, INTERNAL CITY PURCHASES VERSUS DEVELOPERS COMING IN OR PROJECTS COMING IN? WHAT ARE WE LOOKING AT? THIS IS FOR US BUYING, THIS IS FOR US, FOR US CITY PURCHASING.

YES.

IT'S GONNA BE, DEVELOPERS ARE GONNA PURCHASE WHEREVER THEY YEAH.

WHEREVER THEY GET THE BETTER VALUE.

YEAH.

I WOULD BE OPPOSED TO THE POINTS, BUT I DON'T KNOW, JUST, JUST FOR LOCATION.

BUT I DON'T, I DON'T, WE NEED TO GIVE DIRECTION ON THAT.

I, I AM FOR THE POINTS.

AND I THINK THAT SHOULD BE A DETERMINER TOO.

IF IF IT COMES DOWN, IF THEY'RE EQUAL EQUAL, THEN I WOULD LIKE TO SEE LOCAL BUSINESSES GET THAT BID.

SO THAT'S WHERE I STAND WITH THAT.

YEAH.

UM, I KIND OF SEE YOUR POINT, UM, IN TERMS OF IT, IT NEGATING THE, THE BEST VALUE BY ADDING THESE ADDITIONAL PARAMETERS.

UH, AT THE SAME TIME WE HAVE HAD SMALL BUSINESSES, LIKE WE'RE HERE, THEY NEVER USE US, BUT I, I THINK MAYBE WE DO A BETTER OUTREACH, UM, TO THOSE BUSINESSES.

UM, AND WE TALKED ABOUT THIS BEFORE, MAKING SURE THEY'RE ON THE BUYBOARD, MAKING SURE THEY'RE ON THE LIST WHEN PROJECTS COME UP AND STUFF LIKE THAT.

SO, UM, I DUNNO HOW MUCH MORE ROBUST WE CAN DO OR WE CAN BE ON, ON THOSE EFFORTS, BUT, UM, WE COULD ALWAYS TRY IT.

RIGHT.

THE POINT SYSTEM AND ALWAYS AMEND SHOULD THERE BE ANY ISSUES OR ANYTHING COMES UP.

I THINK THE THING IS THAT WE AT LEAST TRY TO INCLUDE

[00:10:01]

UM, AND WE MAY NOT GET ANY THAT CAN COMPETE ON SOME OF THESE PROJECTS.

UM, THAT, THAT COULD BE SOMETHING THAT HAPPENS, BUT WE WON'T KNOW UNTIL WE TRY.

AND SO I WOULD AT LEAST LIKE TO TRY, EVEN IF IT'S ON SOME SORT OF LIKE, UM, TRIAL BASIS JUST TO SEE HOW MUCH INTEREST WE GET OUT OF OUR SMALL BUSINESS.

SO IF WE DO THE ADDITIONAL POINTS, THEN IT'S NOT NECESSARILY APPLES TO APPLES ANYMORE.

SO, UM, SO IF YOU DO THE ADDITIONAL POINTS, WE'RE ALREADY GIVING THEM MORE THAN THE OTHER BUSINESS.

RIGHT.

SO I JUST WANNA MAKE SURE WE'RE CLEAR ABOUT THAT.

IT'S NOT GONNA BE APPLES TO APPLES BECAUSE NOW IF IT IS EQUAL, WE ALREADY KNOW THEY'RE GONNA GET IT ANYWAY BECAUSE THEY HAVE ADDITIONAL POINTS.

SO IT'S THE SAME THOUGHT PROCESS TECHNICALLY.

SO I'LL STILL, I MEAN WE CAN ADD THAT.

THAT'S FINE.

UM, AND THEN WE CAN JUST COME UP WITH, ARE YOU COMFORTABLE WITH FIVE POINTS, 10 POINTS, UM, A RANGE BASED ON THE CRITERIA OF WHAT WE'RE LOOKING FOR? ARE YOU LEAVING THAT UP TO THE DEPARTMENTS? I WOULD LEAVE THAT UP TO THE DEPARTMENTS.

MY OPINION, I'D BE VERY CAREFUL WITH THAT JUST BECAUSE YOU GET INTO A LITTLE BIT OF THE POLITICS AT THAT POINT.

SO LET'S SAY DEPARTMENT HEAD X HAS A LOT OF MEETINGS WITH A CERTAIN VENDOR AND WHEN DEPARTMENT HEAD X BUILDS THE RFP, THEY, THEY KNOW 'CAUSE MOST SCORING MM-HMM .

IS RELATIVELY CLOSE.

Y'ALL PLEASE SPEAK UP.

Y'ALL DO MOST OF THE SCORING , IT'S RELATIVELY CLOSE.

AND WHAT I WOULD HATE IS LIKE THIS PROJECT GETS ONE THROUGH 10 FOR LOCAL, THIS PROJECT GETS ONE THROUGH FIVE.

THIS PROJECT GETS WHATEVER YOU HAVE TO BE SAID.

AND, UM, I WOULDN'T WANNA PUT THAT ON A DEPARTMENT HEAD.

I WOULD WANT THAT TO BE KIND OF ESTABLISHED HERE SO THAT IT'S NOT PUTTING YOU OR ANYBODY ELSE IN A WEIRD SITUATION OF LIKE, HEY, , YEAH.

MAKE THIS ONE A LITTLE BIT HIGHER FOR LOCAL 'CAUSE WE'RE GONNA GET THIS ONE.

OR YEAH, A COUNCIL MEMBER CALLS ONE OF THE DIRECTORS AND SAID, HEY, THIS BUSINESS IS GOING TO REALLY NEEDS THIS, THIS GIG.

UM, 'CAUSE WE DO GET A LOT OF CALLS FROM CITIZENS THAT, HEY, I'M A LOCAL BUSINESS OWNER AND I SHOULD BE A PART OF THIS.

AND WE JUST, I, I'M TRYING TO PROTECT THE EMPLOYEES AT THIS POINT.

SO MAKE SURE THAT WE'RE STILL MORE POINTS FOR QUALIFICATIONS AND YES, ABSOLUTELY SMALL.

YEAH.

RIGHT.

I WOULD AGREE.

YEAH.

I MEAN THE ISSUE WE'VE GOTTA, 'CAUSE YOU, AT FIRST WE SAID IF ALL YOU KNOW EVERYTHING'S EQUAL, WE'LL GIVE PREFERENCE TO LOCAL.

WELL THAT WOULD JUST MEAN IF IT'S ALL EQUAL BASED ON OUR CURRENT SCORING SYSTEM, WE'RE GONNA GO LOCAL.

BUT WHAT YOU'RE SAYING NOW, IF YOU WANNA ADD POINTS FOR BEING LOCAL, THAT'S SOMEONE WHO TODAY WOULDN'T, YOU KNOW, EVEN IF IT'S NOT EQUAL, BUT THEY'RE CLOSE, BEING LOCAL COULD PUSH THEM OVER.

MM-HMM .

SO IT'S, THERE'S TWO DIFFERENT THINGS.

ADD POINTS ON THE FRONT END BASICALLY, OR JUST USE IT AS A TIE BREAKER.

AND THEN WE NEED TO DETERMINE CITY OF BAYTOWN, CITY OF BAYTOWN, ETJ REGION, WHAT'S LOCAL? GOOSE CREEK, IST SCHOOL DISTRICT BOUNDARIES, I MEAN, WHAT'S, WHAT'S LOCAL? AND THEN THERE'S A LOT OF MONEY INVOLVED HEADQUARTERED HERE, AN OFFICE HERE.

MM-HMM.

HMM.

SOMEONE HAS A PO BOX HERE, SOMEBODY THAT WORKS FROM HOME HERE.

CORRECT.

IT'S GONNA GET MESSY.

I THINK IT'S EASIER TO JUST NOT DO IT.

THERE HAVE BEEN EXAMPLES THAT HAVE INCORPORATED, YOU KNOW, A LOCAL OFFICE OR PROXIMITY OF, UM, YOU KNOW, WITHIN X AMOUNT OF MILES OR TIME DEPENDING ON THE SPECIFIC SERVICE, YOU KNOW, IF, UM, AND THAT'S PART OF A LARGER CATEGORY.

SO DEPENDING ON THE SPECIFIC SERVICE, IF WE NEED TO HAVE SUPPLIES AVAILABLE, YOU KNOW, WITHIN 30 MINUTES TIME, YOU KNOW, THAT KIND OF LENDS ITSELF TO CONSIDERATION OF THE OVERALL RESPONSIVENESS.

SO, UM, THERE ARE TIMES WHEN YOU CAN BUILD IT IN WHEN IT ACTUALLY DOES MAKE SENSE, UM, AS A PART OF THE PROJECT.

NOT SIMPLY AS, YOU KNOW, PICKING A BAYTOWN VENDOR, BUT IT MAKES SENSE DUE TO THE NATURE OF THE WORK.

SO THAT'S, I'VE SEEN THAT A COUPLE TIMES IN, IN WHAT WE'VE DONE HERE ALREADY.

IT'S A GOOD CONVERSATION.

YEAH.

SO IT'S NOT AS, AS WE ORIGINALLY

[00:15:02]

YEAH.

I MEAN THAT'S A GOOD POINT, BRENT.

IF IT'S, IF IT'S SOMETHING WE NEED A RESPONSE TIME, BUT ALMOST FEEL LIKE THAT SHOULD BE INCLUDED IN SOME OTHER, SOME OTHER ITEM ALREADY IS JUST EXACTLY THE QUALITY OF SERVICE AVAIL AVAILABILITY.

SO YOU'RE GONNA YEAH.

AVAILABILITY, LIKE YOU'RE GONNA, LOCAL'S GONNA HAVE A HIGHER SCORE ON AVAILABILITY ALREADY, YOU KNOW, SOMETHING SIMILAR, BUT NOT EXACTLY IS, YOU KNOW, EXPERIENCE IN BAYTOWN, UM, HAS PERFORM PERFORMED.

AND SO THERE'S, THERE'S THOSE THINGS, BUT TO YOUR POINT, IT'S ALWAYS INCLUDED KIND OF IN A, IN A LARGER CATEGORY WE HAVE THOSE YEAH, THAT'S KIND OF WHAT I WAS INCLUDED.

YOU KNOW, THERE'S LIKE EXPERIENCE AND THEN EXPERIENCE WITH THIS INDIVIDUAL.

YEAH.

OKAY.

IF YOU WANNA MAKE A CHANGE, YOU HAVE TO PROVIDE SOME DIRECTION.

YEAH.

SO THAT I CAN DRAFT SOMETHING UP.

SO I DID NOT GET TO READ THROUGH THIS, THERESA.

NO, THAT'S FINE.

SO LET ME HAVE SOME TIME TO DO THIS AND MAYBE SEE IF THERE'S SOME BENCHMARKS OUT THERE OKAY.

THAT WE CAN LOOK AT.

UM, BUT Y'ALL GAVE SOME INTERESTING THOUGHTS TO THIS, SO I APPRECIATE THAT.

OKAY.

I DON'T KNOW HOW YOU FEEL RIGHT NOW.

I'M LEANING TOWARDS A POINT SYSTEM THAT DOES INCENTIVIZE THOSE WHO ARE QUARTER TO LIVE HERE IN THE CITY.

AND SO, BUT AGAIN, I AGREE WITH YOU MAYBE WANT TO GO, GO OVER AND KIND OF, YOU KNOW, SET A, UH, FIND A BENCHMARK AND, AND UM, COME UP WITH SOMETHING CLEAR AND OBJECTIVE THAT, THAT WE COULD LOOK AT.

SO, OKAY.

OKAY.

THANK YOU.

[b. Discuss the City of Baytown Investment Policy in accordance with the Public Funds Investment Act, Section 2256.005 (e).]

OKAY.

SO THIS IS JUST ONE OF OUR YEARLY, UH, HOUSEKEEPING ITEMS. WE'RE BRINGING IT TO YOU A LITTLE EARLY.

WE DIDN'T CHANGE ANYTHING IN OUR INVESTMENT POLICY THIS YEAR.

UM, BUT WE'RE BRINGING IT TO YOU EARLY.

'CAUSE WE HAVE TO DO IT EVERY YEAR BECAUSE WE ARE NOW BEING TOLD THAT WE HAVE TO TAKE IT TO ALL THE BOARDS.

SO WE WANT TO MAKE SURE THAT WE'RE ABLE TO DO THAT, UM, TIMELY.

SO WE'RE BRINGING IT TO THE FINANCE COMMITTEE FIRST, WE'LL BRING IT TO COUNCIL AND THEN WE'LL TAKE IT TO THE BOARD.

SO MAKE SURE WE'RE, UM, CHECKING ALL THE BOXES.

BUT THIS YEAR WE DIDN'T CHANGE ANYTHING IN INVESTMENT POLICY AS THE SAME ONE FROM LAST YEAR.

THAT'S WHY WE DON'T HAVE ANY WRITE-UPS OR ANYTHING IN THERE.

I DO REMEMBER THAT, UM, LAURA HAD ASKED HOW THE BROKER DEALERS WERE CHOSEN AND TYPICALLY, UM, I WAS TOLD THEY TAKE THOSE FROM A, UM, THOSE, UM, UM, DEALERS THAT HAVE A LARGE INVENTORY OF INVESTMENTS TO CHOOSE FROM.

IT'S BASED ON REPUTATION RESPONSIVENESS.

AND THOSE, UM, ONES THAT HAVE LARGER INVENTORIES ALSO, UH, ENSURE THAT WE HAVE THE MINORITY AND WOMEN VETERANS AND THOSE ITEMS, UH, THOSE, UM, COVERED.

AND SO THAT'S HOW THEY'RE CHOSEN.

BUT WE DIDN'T MAKE ANY CHANGES THIS YEAR.

IT HAS BEEN REVIEWED AND WE'LL, UM, RECEIVE FOR REVIEW, UM, TO GET CERTIFIED AGAIN ONCE WE TAKE IT TO ALL THE BOARDS.

SO WE USUALLY, WE BRING IT IN JANUARY, FEBRUARY, BUT WE'RE TRYING TO BRING IT A LITTLE EARLY SO WE CAN MAKE SURE WE TAKE IT OFF THE BOARD.

OKAY.

SOUNDS GOOD.

ANY QUESTIONS? IT LOOKS GOOD.

NO CHANGES.

SOUNDS GOOD.

OKAY.

FOUR C IS DISCUSSED

[c. Discuss Bond Issuance.]

SO, UM, LET'S, UH, YEAR, YOU KNOW, WE HAD, UH, IN THE FINANCE COMMITTEE, WE HAVE DIRECTION THAT FOR FUTURE DEBT FOR GENERAL FUND THAT YOU WOULD LIKE TO SEE GENERAL OBLIGATION, UH, BONDS ISSUED RATHER THAN CERTIFICATES OF OBLIGATION.

SO, UH, WE'VE TAKEN THAT DIRECTION AND WE'RE STARTING TO PLAN FOR, UH, A GEO BOND, UH, REFERENDUM NEXT, UH, NOVEMBER OF 25.

SO, UM, WE ALSO HIRED A CONSULTANT TO HELP US THROUGH THAT PROCESS AND, UH, THAT'S HALF AN ASSOCIATES AND, UH, HAVE LONG WIND HERE TODAY TO HELP, UH, WITH HALF TO HELP EXPLAIN THE PROCESS.

WE, WE PRESENTED, UM, THIS, UH, SIMILAR PRESENTATION TO THE CIP COMMITTEE, SO THEY'RE AWARE OF THE PROCESS AND WANT DO THE SAME THING FOR FINANCIAL.

I'LL LET, UM, LONG GO THROUGH THE PRESENTATION, THEN WE CAN

[00:20:01]

CAN I JUST ADD THAT WE ALSO HAVE, UM, JONATHAN FRA, OUR BOND COUNSEL AND JAMAL FINANCIAL ADVISOR HERE TO ALSO ASSIST WITH QUESTIONS IF WE HAVE ANY.

OKAY.

ALRIGHT.

THANK YOU FOR YOUR TIME.

THIS SHORT PRESENTATION WOULD WANT A BRIEF OVERVIEW OF THE PROCESS.

UM, MY NAME IS LONG WIN, SO WE'RE GONNA DO A QUICK INTRODUCTION TALK ABOUT THE GEO BOND PROCESS, UH, WHAT WE ANTICIPATE AS A SCHEDULE LEADING UP TO THE NOVEMBER, 2025 ELECTION.

UH, THE COMPONENTS OF THIS PARTICULAR BOND, UM, THE PUBLIC OUTREACH PROCESS, BOND CAPACITY, AND THEN ACTUAL BOND REFERENDUM, UM, BALLOT.

UH, FEEL FREE TO JUMP IN ANYTIME, UH, COUNSEL, FINANCIAL ADVISOR, I'D SAY, IF I'M WRONG, YOU GUYS HAVE SOMETHING TO ADD, JUST FEEL FREE TO JUMP IN.

ALRIGHT, SO GENERAL OBLIGATION BOND, UH, TAXES, A MUNICIPAL BOND BACKED BY THE, UM, AVALOR TAX.

SO YOU'RE, YOU'RE DOING THIS BOND AND, AND, UM, TELLING YOUR BOND HOLDERS YOU'LL PAY BACK THROUGH YOUR, YOUR TAX.

UM, AND THIS IS USED TO, UH, UH, FUND PUBLIC INFRASTRUCTURE PROJECTS.

UM, THE PURPOSE AND IMPACTS OF GL BONDS, IT ALLOWS FOR FUNDING OF LARGE SCALE PROJECTS, LONG-TERM CAPITAL INVESTMENTS THAT BENEFIT THE COMMUNITY, UM, OVER THE FULL, UH, LIVES OF THAT ASSET.

UM, IT ALSO MAKES THE FINANCE SIDE MORE MANAGEABLE, ESPECIALLY ON THESE LARGEST PROJECTS.

UM, THIS ALSO ENSURES THAT FUTURE RESIDENTS WHO BENEFIT FROM IMPROVEMENTS WILL ALSO CONTRIBUTE TO THE COST AS THEY'RE, THEY'RE PAYING THEIR TAXES.

UM, THE ISSUANCE OF GO BONDS, UH, MAY ALSO ACCELERATE LARGER PROJECTS, UH, RATHER THAN PAY AS YOU GO MODEL, UM, VOTER APPROVAL.

SO THIS, THE BOND DOES HAVE TO BE APPROVED BY THE MAJORITY OF ELIGIBLE VOTERS.

UM, IF THE BOND DOESN'T PASS, THERE ARE SOME IMPLICATIONS.

ANY PROJECTS THAT WERE IDENTIFIED ON THAT, THAT BALLOT, UM, THE CITY CAN'T GO OUT AND GET LIKE A CO FOR A THREE YEAR PERIOD.

UM, I THINK THAT'S JUST SAYING TO THE VOTERS, THESE ARE THE PROJECTS IF IT GETS TURNED DOWN.

SO THAT MAY CAUSE PROJECT DELAYS AND OF COURSE SOME COMMUNITY IMPACTS.

WELL, CAN I ADD A COUPLE OF ITEMS THERE? THERE IS LEGISLATION THAT'S ALREADY BEEN INTRODUCED AT THE LEGISLATURE THIS YEAR THAT IT WOULD EXTEND THAT FREEZE OUT TIMELINE AFTER A FAILED ELECTION TO FIVE YEARS.

AND THERE'S ALSO LEGISLATION THAT'S BEEN FILED THAT IF YOU HAD A FAILED BOND ELECTION, YOU COULD NOT GO OUT FOR A NEW BOND ELECTION ON THAT PROJECT FOR FIVE YEARS.

OH WOW.

SO THAT SUCKS.

BOTH OF THOSE PIECES OF LEGISLATION HAVE BEEN FILED.

THAT'S NOT TO SAY THAT THEY'RE GONNA MOVE, BUT JUST WANTED TO LET YOU KNOW THAT THOSE WERE OUT THERE.

OKAY.

ALRIGHT.

SO THE PROCESS, UM, FIRST THING I DO IS IDENTIFY PROJECTS.

THAT'S WHERE WE'RE REALLY HELPING, UH, THE ENGINEERING STAFF.

WE ACTUALLY HAVE OUR FIRST MEETING NEXT, NEXT WEEK.

UH, WE'RE COMBING THROUGH YOUR MASTER PLANS, YOUR EXISTING NEEDS, AND WHAT WE HOPE TO POPULATE IS A LIST OF PROJECTS WITH SOME HIGH LEVEL COSTS GOING INTO YOUR, UH, JANUARY.

SO THE, THE NEXT MEETINGS, UM, THE NEXT THING WILL BE WORKING WITH YOUR FINANCIAL ADVISOR DETERMINING A BOND CAPACITY.

UH, I HAVE A SLIDE ON, ON ALL THE THINGS THAT MAY IMPACT THE BOND CAPACITY, BUT YOU'RE REALLY WORKING WITH, UM, THIS COMMITTEE AND, AND COUNCIL AND, AND GETTING THAT BOND CAPACITY.

UM, DETERMINE ONCE WE DO THAT, WE'LL, WE CAN TAKE OUR LIST OF PROJECTS AND FIT IT TO THAT CAPACITY.

SO WE HAVE A FUNNEL LIST OF PROJECTS AND ONCE THAT HAPPENS, REALLY THE PUBLIC OUTREACH PROCESS STARTS.

SO INCLUDE A BOND COMMITTEE, INCLUDE, UH, SOME TOWN HALL MEETINGS, THINGS LIKE THAT.

UM, BETWEEN THEN AND, AND ACTUALLY CALLING THE ELECTION, YOUR YOUR BOND COUNSEL, YOUR FA FINANCIAL ADVISOR WILL WORK WITH, WITH Y'ALL TO DRAFT THE, THE BOND PROPOSITION AND THE VOTER, UH, REQUIREMENT AND DOCUMENTS.

ALL THAT WILL BE DRAFTED IN BETWEEN, UM, AUGUST NEXT YEAR, YOU NEED TO CALL THAT ELECTION.

UM, AND THEN THE BOND REFERENDUM WILL GO ONTO THE BALLOT IN NOVEMBER AND THEN, UH, BOND SELL AND CLOSING AND THE FUNDS WILL BE AVAILABLE FOR THE PROJECTS.

SO WHAT DOES THAT LOOK LIKE FOR MEETING OUR NOVEMBER, 2025 BOND DEADLINE? SO RIGHT NOW WE'RE WORKING WITH, UH, CITY STAFF AND, AND US TO IDENTIFY PROJECTS.

WE HOPE TO HAVE A PRELIMINARY PROJECT LIST BY JANUARY.

UM, DURING TO MARCH YOU'RE WORKING WITH YOUR FINANCIAL ADVISOR, YOUR COUNCIL, TO GET THAT BOND CAPACITY, UM, DETERMINED.

UH, AND THEN FROM THERE WE'RE GOING TO THE PUBLIC OUTREACH PROCESS, UM, FROM, FROM MARCH START UNTIL THE ELECTION.

AND THEN, UM, THE ELECTION HAS TO BE CALLED IN AUGUST, 2025.

AND THEN NOVEMBER WILL BE, UM, THE ELECTION AND THEN AFTER THAT THREE TO SIX MONTH PERIOD WHERE YOU'RE CLOSING, SELLING THOSE BONDS, IF THOSE FUNDS ARE GONNA BE COMING AVAILABLE.

[00:25:01]

DRAINAGE.

UH, SO THESE PROJECTS ARE REALLY THE STORM SEWER, THE CHANNEL PROJECTS, THESE ARE FLOOD MITIGATION TYPE PROJECTS, UM, UH, MOBILITY, WHICH ARE, UH, THE TARGET, UH, MOBILITY ISSUES, TRAFFIC ISSUES, UH, ANY TRAFFIC SAFETY ISSUES AND THEN PARKS, UH, WHICH ARE YOUR RECREATIONAL AREAS.

UM, IT COULD BE IMPROVE EXISTING PARK, BUT BUILDING A NEW PARK, WE'RE STILL WORKING THOSE THINGS OUT.

A QUESTION ON THAT.

OH, GO AHEAD FRANK.

WELL, I WAS JUST GONNA CLARIFY THAT.

SO I ORIGINALLY SAID THAT IT'S JUST GENERAL FUND.

UH, WE DO HAVE DRAINAGE INCLUDED IN THERE BECAUSE WE UM, WE HAVE A SEPARATE DRAINAGE FUND, BUT THE DRAINAGE FUND HAS ALREADY ISSUED ITS MAXIMUM AMOUNT OF DEBT.

SO IF WE WANT TO DO ANY OTHER DRAINAGE PROJECT, IT REALLY NEEDS TO COME FROM GENERAL FUND.

SO THAT, THAT'S WHY WE HAVE DRAINAGE IN THERE AS WELL.

AND THEN I WILL ADD THAT COUNSEL WILL MOST LIKELY BE CONTACTED FROM THE FIRE UNION TO ASK IF YOU CAN ADDRESS THEIR FACILITIES, UM, THEIR REGULAR MAINTENANCE SO THAT IT'S NOT UP TO CASH FLOW TO ADDRESS THEIR MAINTENANCE.

SO YOU MAY HAVE FACILITIES AT SOME POINT ADDED TO THIS, AND THIS IS AS IF YESTERDAY.

OKAY.

IT'S NOT THAT OF YESTERDAY.

SO YEAH.

UM, TO, TO ADD THIS TO THE LIST, WHICH COULD, UM, PUT ADDITIONAL MONIES IN OR TO PUT ONTO THE BOTTOM.

NOW WE DO HAVE NOW A MAINTENANCE PLAN, RIGHT? DIDN'T WE GO THROUGH AND ADD A WHOLE MAINTENANCE FACILITIES? YEAH.

FACILITY MAINTENANCE PLAN.

YEAH.

WE DID A CONDITION ASSESSMENT OF ALL THE FACILITIES AND WE'RE WORKING ON, UH, CORRECTING THINGS IDENTIFIED IN THE CONDITION ASSESSMENT.

IS THERE A SCHEDULE WITH THAT ALREADY? AND WHERE DO THESE I DON'T, I DON'T HAVE A SCHEDULE TO COMPLETE ALL THE WORK.

IT'S DEPENDING ON THE FUNDING PER YEAR.

SO WE HAVE A, AND WE ARE TRYING TO FOCUS INITIALLY ON, UH, MEETING DEFICIENCIES FIRST, BUT YOU HAVE SOME STATIONS THAT HAVE IDENTIFIED, LIKE UPDATING THE KITCHENS, UPDATING THE BATHROOMS, UPDATING.

WE HAVE FRANK AND ASIM HAVE SOME OF THOSE OVER.

SO, AND SOME OF THOSE BATHROOM UPDATES HAVE BEEN ADDING A WOMEN'S BATHROOM TOO.

SO WE DO ADDRESS THINGS THROUGH OUR REGULAR OPERATIONS, OPERATIONAL BUDGET FACILITY.

UH, MY QUESTION WAS, WHEN WE GO HAVE THE ELECTION, CAN ITEMS BE COMBINED ON A SINGLE ITEM? OR LIKE, WOULD THESE BE THREE SEPARATE BALLOT ITEMS OR? YEAH, YEAH.

SO THE, UH, THE ANSWER TO THAT IS FOR A CITY IT'S DIFFERENT THAN A SCHOOL DISTRICT.

SO FOR A SCHOOL DISTRICT, YOU CAN PUT IT ALL TOGETHER IN A SINGLE PROPOSITION, UNLESS THERE ARE VERY SPECIFIC THINGS THAT ARE OUTSIDE FOR, YOU HAVE TO HAVE A SINGLE SPECIFIC PURPOSE FOR A CITY.

SO THAT MEANS YOU CAN PUT DRAINAGE PROJECTS TOGETHER, YOU CAN PUT PARKS TOGETHER, YOU CAN PUT MOBILITY TOGETHER, BUT YOU COULDN'T DO MOBILITY AND PARKS IN THE SAME ITEM.

SO YOU COULD DO PUBLIC SAFETY ALTOGETHER IF YOU WERE TO DO PUBLIC SAFETY, BUT YOU COULDN'T ADD CITY HALL ON TOP OF THAT.

SO IT'S, IT'S, YOU CAN HAVE MULTIPLE PROJECTS WITHIN THE SAME CATEGORY, BUT YOU HAVE TO BREAK THEM OUT BY CATEGORY.

OKAY.

BUT IF I SAID THE CATEGORY IS INFRASTRUCTURE COULD DRAINAGE AND MOBILITY? NO.

OKAY.

NO, NO, NO.

THEY HAVE TO BE LIKE, YEAH, THEY HAVE TO BE ALIKE.

AND THE OTHER, THE OTHER THING YOU'LL LOOK AT AS YOU'RE LOOKING THROUGH THIS, IF YOU WANNA LOOK AT IT AND SAY, WE'RE WILLING TO PUT AT RISK CERTAIN PROJECTS, LIKE WE'RE WILLING TO RISK HAVING A, AN ELECTION ON THIS AND MAYBE CLOSING OUT FOR THREE YEARS.

WE CAN BE MORE SPECIFIC AND LEAD LIKE OTHER, YOU CAN HAVE CERTAIN ROADS THAT YOU'RE HAVING AN ELECTION ON RATHER THAN DOING A GENERAL ROAD PROPOSITION.

SO THERE'S SOME THINGS LIKE THAT THAT WE CAN TALK THROUGH AS YOU'RE GOING THROUGH IT.

AND YOU COULD EVEN BREAK 'EM OUT INTO MULTIPLE PROPOSITIONS IF YOU WANTED TO.

I'M NOT, I'M NOT SUGGESTING THAT, BUT I'M JUST SAYING YOU COULD.

UH, SO THOSE ARE THE TYPES OF CONVERSATIONS THAT WE WOULD HAVE WITH ADMINISTRATION TO HIM.

OKAY.

SO FOLLOW UP QUESTION ON THAT.

UM, THE GENERIC PROPOSITION LANGUAGE VERSUS THE SPECIFIC, UM, ROADWAYS, FOR EXAMPLE, IF YOU HAVE A BOND THAT SAYS, FOR THE DESIGN CONSTRUCTION AND ROADWAYS WITHIN THE CITY, IF THAT FAILS, ARE YOU PROHIBITED FROM ANY SORT OF BOND ISSUES FOR ANY SORT OF ROADWAYS? FOR COS YES, YOU WOULD BE FROZEN OUT ON ALL ROAD COS HOWEVER, IF WE SAID, UM, FOR THE PURPOSE OF MAIN STREET, SMITH STREET, UM, WHATEVER STREET AND IT FAILED, WE COULD DO ANYTHING ELSE EXCEPT FOR THOSE STREETS.

THAT'S CORRECT.

OKAY.

[00:30:02]

UM, IF YOU THINK YOU'VE GOT A LOT OF SUPPORT, YOU CAN GO AHEAD AND DO THE WHOLE, UH, DO THE WHOLE THING.

BUT IF YOU, IF YOU KNOW IT'S GONNA BE TIGHT, THEN THAT'S JUST ANOTHER FACTOR THAT YOU NEED TO TAKE INTO ACCOUNT.

THE OTHER THING TO THINK ABOUT, I MEAN THEY COULD DO AWAY WITH COS IN THE NEXT LEGISLATIVE SESSION TOO.

SO THAT MAY ALL BE OFF THE TABLE, UM, DEPENDING ON WHERE THINGS GO.

IF YOU DID, UM, KIND OF A, YOU KNOW, SMITH STREET, MAIN STREET, ET CETERA, AND OTHER AREAS AS NEEDED, THAT WOULD STILL LIMIT YOU TO YEAH, POTENTIALLY.

SO ONCE WE GOT INTO IT, I MEAN, SOMETHING THAT WE CAN DO, IF WE START EARLY ENOUGH ON THE PROCESS, WE CAN GO TO THE AG AND PRE-CLEAR YOUR, UH, YOUR PROPOSITIONS AND SAY, YOU KNOW, AND ASK THAT SPECIFIC QUESTION, THIS IS WHAT WE BELIEVE UNDER THESE CIRCUMSTANCES, THIS IS WHERE YOU WOULD BE LIMITED.

AND I WOULD RECOMMEND THAT LIKE IF WE'RE, IF WE'RE REALLY GETTING INTO THOSE TYPES OF THINGS, START EARLY ON PUTTING THE PROPOSITIONS TOGETHER WELL BEFORE THAT AUGUST DEADLINE, LET US PRE-CLEAR THOSE ITEMS WITH THE AGS OFFICE AND, AND KIND OF HAVE THOSE CONVERSATIONS TO THE EXTENT, EXTENT.

ONE LAST QUESTION, I PROMISE.

UM, ON DRAINAGE, FOR EXAMPLE, UM, FRANK MENTIONED THAT WE DO HAVE A DRAINAGE UTILITY, BUT WE'RE LOOKING AT THIS AS PART OF A, A GO THAT'S TAX FUNDED.

IF IT FAILED, UM, AND WE SOMEHOW RAISED MORE MONEY IN THE DRAINAGE FUND, WE COULD ISSUE REVENUE BONDS AT THAT POINT IF IT FAILED.

THAT'S RIGHT.

IT DOES NOT PREVENT YOU FROM DOING REVENUE BONDS.

QUICK NOTE, JUST FOR CLARIFICATION, BECAUSE FOR CLARITY, IF OTHER MEMBERS LISTEN TO THIS, TO THIS AUDIO OR WATCH THE VIDEO, THIS FINANCE COMMITTEE IS NOT DETERMINING CIP PROJECTS.

WE ARE TALKING CIP PROJECTS RIGHT NOW, JUST FOR THE UNDERSTANDING OF HOW IT IMPACTS FINANCIALLY OF THE ISSUANCE OF DEBT.

I'M JUST CLARIFYING FOR THE PEOPLE LISTENING ON WHY WE'RE TALKING.

VERY GOOD.

ALRIGHT, GOOD QUESTIONS.

UM, SO THE PUBLIC OUTREACH PROCESS, WHAT WE'VE SEEN, UM, THINGS THAT WE'RE SUCCESSFUL FOR OTHER ENTITIES HAVE GONE OUT IS A IS A WEBSITE, WHICH WOULD BE HOSTED ON ANY TIME WEBSITE.

UH, WHAT SUGARLAND DID WAS THEY HAD EVERY PROJECT WITH A EXHIBIT ON WHAT THE PROJECT LIMITS ARE AND A LITTLE, LITTLE SUMMARY ON WHAT THAT PROJECT IMPROVES.

UM, I THINK HAVING THESE THINGS INCREASES THE TRANSPARENCY TO THE VOTERS AND, AND JUST HELPS GET THAT, THAT, UM, ELECTION FOR THAT, UM, FOR THAT ELECTION.

AND THEN ADVOCATING FOR THE BOND.

UM, THERE, THERE IS, UH, THE OPPORTUNITY FOR THE CITY TO ENGAGE A BOND COMMITTEE, WHICH WOULD BE STAKEHOLDERS WHO CAN ADVOCATE ON THE CITY'S BEHALF.

UH, THESE ARE KEY STAKEHOLDERS IN THE CITY, OF COURSE WE WOULD WORK WITH THEM THROUGHOUT THE PROCESS OF IDENTIFYING PROJECTS, MAKE SURE THESE PROJECTS ARE SOMETHING THAT SUPPORTED BY THE COMMUNITY.

SO THAT'S SOMETHING THAT, THAT, UH, IS A TOOL.

AND OF COURSE, PUBLIC MEETINGS, TOWN HALL MEETINGS, UM, A FEW OF THOSE, UM, WILL HELP KIND OF SPREAD THE WORD OF THIS BOND.

UM, THERE ARE, UH, ADVOCATING LEGAL, UH, DO YOU WANNA TALK ABOUT THE ADVOCATING? YEAH.

SO THERE, ONCE YOU CALL A BOND ELECTION, THERE ARE LIMITATIONS ON WHAT TYPES OF INFORMATION YOU CAN PUT OUT.

YOU CANNOT ADVOCATE FOR OR AGAINST A MEASURE USING PUBLIC FUNDS.

ONCE YOU'VE CALLED A BOND ELECTION, YOU CAN PUT OUT INFORMATION ON IT WHEN THE ELECTION'S GONNA BE, WHAT THE TAX RATE IMPACT IS, WHAT THE PROJECTS ARE, THAT TYPE OF THINGS.

BUT NOTHING THAT WOULD SAY VOTE FOR THE BOND OR PUT SUCH A SPIN ON THINGS THAT YOU COULD ONLY VOTE FOR THE BOND.

SO THOSE ARE THE TYPES OF THINGS THAT PEOPLE WILL PUSH BACK ON.

SO AGAIN, ONCE THAT'S CALLED, THAT'S THERE, YOU CAN HAVE OUTSIDE PACS THAT SUPPORT IT.

DIFFERENT THINGS LIKE THAT, THAT, THAT ARE PEOPLE NOT AFFILIATED WITH THE CITY THAT ARE SUPPORTING IT, BUT AS IT RELATES TO THE CITY, THERE CANNOT BE AN EXPENDITURE OF PUBLIC FUNDS.

UH, ON, ON ADVOCACY.

CAN WE, UM, CLARIFY NOT AFFILIATED WITH THE CITY? BECAUSE A BOND COMMITTEE IS OR IS NOT AFFILIATED WITH THE CITY, YOU CANNOT NOT USE PUBLIC FUNDS.

RIGHT? SO THAT'S THE KEY, THAT'S THE KEY POINTS THAT YOU CANNOT USE PUBLIC FUNDS SO A COMMITTEE MEMBER CAN ADVOCATE ON BEHALF OF RIGHT.

OR IF THEY, IF THEY HAD A PACK AND THEY, OR YEAH, IF THEY'RE A COMMITTEE MEMBER AND THEY'RE OUT THERE ON THEIR OWN AND THEY'RE TALKING ABOUT IT AND THEY'RE NOT USING PUBLIC FUNDS TO DO IT.

YEAH, ABSOLUTELY.

THEY CAN, THEY CAN TALK ABOUT IT.

AND SO WE, AS COUNCIL MEMBERS, ALL WE CAN DO IS SHOW THEM WHAT'S ON THE BOND.

AND LIKE, SO IT'S A, IT'S A LITTLE, IT'S A LITTLE TOUGH, RIGHT? BUT YOU ARE A CITIZEN, YOU DON'T LOSE YOUR FIRST AMENDMENT RIGHTS, RIGHT? YOU CAN NEVER USE PUBLIC FUNDS TO DO IT.

SO YOU COULDN'T USE YOUR CITY EMAIL ACCOUNT, YOU COULDN'T USE A CITY LAPTOP, YOU COULDN'T DO THAT TYPE OF STUFF TO SEND ANYTHING OUT.

BUT IF YOU'RE TALKING TO SOMEBODY AT THE GROCERY STORE, YOU CAN GIVE THEM YOUR, YOUR VIEWS ON IT.

IF YOU'RE GOING TO A KIWANIS CLUB, YOU CAN GIVE YOUR VIEWS ON THOSE TYPES OF THINGS.

UM, BUT IT'S, YOU CAN'T USE, IT'S, IT'S, IT'S

[00:35:01]

IT'S GOTTA BE ON YOUR OWN TIME WITH YOUR OWN MONEY.

THAT'S GOOD TO KNOW, KNOW.

THANK YOU.

UM, SO ABOUT BOND CAPACITY, UM, FOR HOME ROAD CITY OF TEXAS, UH, THE BOND, UH, THE MAXIMUM, UH, LIABLE RATE FOR DEBT SERVICE IS ONE HALF, UH, $1 50 CENTS PER A HUNDRED DOLLARS IN, UH, ASSESSED VALUE.

SO THAT WILL KIND OF LIMIT YOUR BOND CAPACITY OR WHAT YOU CAN GO OUT FOR.

UM, SO THERE ARE A LOT OF THINGS WILL, WILL DETERMINE YOUR BOND CAPACITY.

THE FIRST THING IS PROJECT NEEDS.

UH, ONCE WE COME UP WITH THIS LIST OF PROJECTS, UM, IT MAY BE LARGER OR SMALLER THAN, THAN ANTICIPATED.

SO THAT'S ONE THING.

UH, DEBT APPETITE.

UM, SO YOU KNOW, EVERY CITY HAS A CERTAIN AMOUNT OF DEBT APPETITE.

I'M SURE YOU FINANCIAL ADVISOR WILL, WILL COME HERE AND, AND TALK ABOUT IMPLICATIONS TO TAXES.

YOU GO FOR THIS AMOUNT, YOU KNOW, TAXES MAY GO UP BY THIS OR YOU GO BY THIS, BUT THAT'S SOMETHING THAT WILL BE, BE PART OF THE EQUATION.

UM, OF COURSE LEGAL AND FINANCIAL PLANNING.

YOU, YOU WANNA MAKE SURE THAT YOU'RE MEETING ALL OF THE LEGAL REQUIREMENTS, UM, CREDIT RATING OF THE CITY.

SO THE, THE BETTER THE CREDITOR RATING THE POTENTIAL FOR LARGER BOND.

'CAUSE YOU'RE NOT HAVING TO PAY BACK THOSE, THOSE LARGER INTEREST, UH, PAYMENTS, UH, THE TAX BASE AND THEN OF COURSE THE EXISTING DEBT, WHICH WILL FALL INTO THAT MAXIMUM ALLOWABLE RATE.

RIGHT? THE BOND REFER, REFER VALID, WE KIND OF TOUCHED ON IT, BUT THIS STATE LAW REQUIRES THAT EACH BOND PROPOSITION, UM, BEFORE A SINGLE SPECIFIC PURPOSE, A SINGLE, UH, SPECIFIC PURPOSE CAN BE INCLUDE MULTIPLE FACILITIES OR IMPROVEMENTS SERVING SUBSTANTIALLY THE SAME PURPOSE, UH, AND NECESSARY RELATED IMPROVEMENTS AND EQUIPMENT.

THE CITY WILL WORK WITH OUR BOND COUNSEL TO KIND OF DRAFT THESE, UM, VOTER INFORMATION REQUIREMENTS.

STATE LAW REQUIRES THAT THE PREPARATION OF A VOTER INFORMATION DOCUMENT THAT DISCLOSES THE INFORMATION OR, UH, REGARDING THE PROPOSED DEBT, UM, IN INCLUDING THE PRO PROPOSED, UM, AMORTIZATION SCHEDULE AND TAX IMPACTS WILL BE IN THERE ALSO.

UM, SO HERE'S A COUPLE EXAMPLES OF BONDS THAT, THAT WERE, UM, IN THIS PREVIOUS NOVEMBER ELECTION.

YOU SEE THE CITY OF SUGARLAND, HOW THEY, THEY, UM, SEPARATE THEIRS AND THE CITY OF BEL AIR THERE.

UM, BOTH OF THESE PASSED.

UM, SO IT'S JUST AN EXAMPLE THERE.

WE DON'T HAVE THE SAME SUCCESS RATE AS WE DO NOT OKAY.

UH, AS THE CITY, YEAH.

CITY'S PRETTY SUCCESSFUL.

OKAY.

THE SCHOOL DISTRICT IS NOT.

SO WHAT ARE THE NEXT IMMEDIATE STEPS? UM, REALLY THE NEXT STEP IS US GETTING THAT PROJECT LISTING OR WORKING WITH YOUR STAFF TO GET OVERALL PROJECT LIST.

UM, THAT LIST WILL PRESENT IT TO THE CIP COMMITTEE, TO THIS COMMITTEE TO COUNCIL.

UM, AND THEN YOU'RE REALLY WORKING WITH CITY STAFF, YOUR FINANCIAL ADVISOR, YOUR COUNCIL TO, TO GET THAT, THAT BOND CAPACITY.

AND THEN FROM THERE WE GO TO PUBLIC OUTREACH.

SO ANY, ANY FINAL QUESTIONS? I HAVE SOME FOR Y'ALL.

UM, THERE ARE QUITE A FEW ALONG, IF YOU DON'T MIND GOING BACK TO MAYBE ONE OF THE FIRST TIMELINE ONES.

SURE.

UH, OKAY.

SO RIGHT HERE IS FINE.

THE, THE FIRST QUESTION IS, AND THERESA AND I HAVE BEEN TALKING ABOUT THIS, AND IT, IT, IT INVOLVES FRANK'S PLANNING AND EVERYTHING ELSE.

AND, UH, THE OR AND OUR CURRENT, OUR FUTURE DEBT ISSUANCE, THE NEXT TWO DEBT ISSUANCES.

AND SO ONE OF THE THINGS THAT WE THOUGHT ABOUT WHEN WE FIRST SAW THIS BRIEF WAS HOW LONG IT TAKES AFTER THE REFERENDUM PASSES TO ACTUALLY GET THE MONEY.

AND SO, LIKE BEST CASE SCENARIO THAT WE'RE LOOKING AT AT THIS POINT IS GOING INTO 26, MID 26 TO GET THE MONEY.

AND IF IT'S THE WORST CASE SCENARIO, WE'RE ALMOST TALKING JUNE OF 26.

UM, AND SO THE INIT, THE NEXT DEBT THAT WE ARE DOING IS A CO BEFORE WE, OR AS WE'RE PREPARING FOR THIS GENERAL OBLIGATION, IF THAT IS SO FAR OUT, IS IT BETTER FOR THE CITY TO ADD A FEW MORE PROJECTS TO THIS NET CO, WHICH IS JUST FIRE STATION TWO AND I THINK ONE OTHER SMALL PROJECT RIGHT NOW, LIKE A TOTAL 11 MILLION OR 11 AND A HALF MILLION E-O-C-E-O-C, MAYBE THE EOC WAS INCLUDED.

OH YEAH.

THE EOC, SO LIKE I BUDGETED, UM, IN THE BUDGET IS 13 MILLION, 13 MONTHS.

JUST THE FIRE STATION TWO, JUST FIRE STATION TWO MAINLY IS THE, THE CRUX OF THE NEXT CO ISSUANCE.

BUT WOULD IT BE BETTER TO DO A LITTLE BIT HIGHER ISSUANCE SO THAT WE COULD POSSIBLY ADDRESS A FEW MORE PROJECTS SINCE THIS IS GONNA BE DELAYED?

[00:40:01]

AND SO DO, DO WE GO OUT FOR DEBT A LITTLE OR A LITTLE BIT MORE ON THIS NEXT CO IF WE HAVE MONEY, IF WE HAVE CAPACITY, UM, TO, TO DO THIS.

THAT'S JUST A QUESTION FOR Y'ALL.

AND IT'S NOT LOOKING AT PROJECTS, IT'S JUST ASKING WHAT ARE YOUR FEELINGS ON GOING OUT FOR MORE CASH OR MORE MONEY AT THIS POINT? I KNOW YOUR ANSWER ALREADY, THE OTHER TWO IN THE ROOM.

THE OTHER ANSWER I WOULD BE A YES, NICE.

UH, I DON'T FEEL COMFORTABLE GOING OUT.

OKAY.

ALRIGHT.

SO MOVING ON FROM THAT ONE.

UM, SO CAN I COME BACK LIKE, YES MA'AM, WHY WOULD YOU NOT BE COMFORTABLE? I DON'T WANT IT TO HAVE AN EFFECT ON THIS FONT IN THE LONG RUN.

HOW WOULD IT AFFECT IT? WELL, AND PEOPLE MIGHT FEEL LIKE WE'RE GOING OUT FOR TOO MUCH DEBT ON THE CO VERSUS THE GO.

YEAH, THAT'S IS UH RIGHT, THAT THE, THAT THAT, JUST IN MY PERSONAL OPINION.

OKAY.

HOW, HOW DOES THAT LOOK THERESA? IS THAT LIKE A VALID POINT? IS THAT I JUST ALSO WANNA UNDERSTAND THE PUBLIC BECAUSE AS A FOLLOW UP TO THE OTHER COMMENT, YES, WE ARE A CITY AND WE DON'T HAVE VERY MUCH, UH, HISTORY IN GOS, BUT THE SAME COMMUNITY MEMBERS THAT CONTINUE TO TURN DOWN THE SCHOOL BONDS WILL BE VOTING ON OUR BONDS.

AND SO IT IN ESSENCE, YES, THOSE ARE OURS, YOU KNOW, BECAUSE IT'S STILL OUR COMMUNITY MEMBERS THAT ARE VOTING AGAINST BONDS AND THE DISCUSSIONS I HEAR IS JUST BECAUSE IT'S A BOND AND WE DON'T WANT TAXES TO GO UP.

UM, THAT'S REALLY WHAT I HEAR FROM THE PUBLIC WHEN IT COMES TO, TO BONDS.

UM, SO WHAT, WHAT IS YOUR FEELING ON THIS BEING OUR FINANCIAL GURU ? I WOULD SAY FOR ME, I WOULD SAY IT'S A VALID POINT IF I WAS A CITIZEN HERE ONLY TO SAY THAT IF WE ARE GOING OUT FOR DEBT, JUST KEEPING IN MIND THE TIMELINE OF WHAT WE'RE DOING, WE ARE DOING A CO AFTER THE AUDIT IN MARCH, RIGHT? MM-HMM .

AND SO THEN WE'LL RECEIVE THOSE BOND FUNDS.

SO YOU'LL BE TALKING ABOUT A BOND, A CO BOND IN MARCH AND THEN YOU WOULD TURN AROUND AND VOTE ON ANOTHER LARGE BOND IN NOVEMBER.

AND SO THERE, I MEAN, EITHER WAY YOU PROBABLY, RIGHT NOW WE DO COS AND UM, CITIZENS, UM, HAVE SOME, YOU KNOW, WE HAVE SOME DISGRUNTLED CITIZENS.

I DON'T THINK YOU'RE GONNA BE ABLE TO PLEASE EVERYONE.

UM, BUT IT IS A VALID CONCERN, BUT I DON'T, I DON'T KNOW THAT, UM, THAT YOU SHOULDN'T CONSIDER IT IF YOU ARE PUTTING OTHER PROJECTS AT RISK BY NOT, UM, DOING IT NOW IF IT NEEDS TO, IF THESE PROJECTS NEED TO BE FUNDED AND NEEDS TO MOVE FORWARD.

I APPRECIATE WHAT YOU'RE SAYING.

UH, HOWEVER, YOU KNOW, SOME OF THE FEEDBACK I'VE GOTTEN ON BONDS IS, I MEAN IN RELATION TO THE SCHOOL DISTRICT IS THAT SOMETIMES, YOU KNOW, BONDS THAT GET TURNED OUT ARE ONES THAT ARE DEEMED, YOU KNOW, NOT NECESSARY AND MAINTENANCE IMPROVEMENTS COULD BE MADE.

SO I DON'T THINK IT'S, IT IS NECESSARILY A, AN ISSUE IF WE DON'T LIKE BONDS, BUT MORE OF A ISSUE IS IT'S JUST THE RIGHT BOND FOR THE RIGHT TIME.

YEAH.

SO, WELL THAT'S BASED ON PERSONAL OPINION SURE.

IN MY MIND.

BUT THIS WOULD BE THE SAME THING FOR FOREST CITY.

I MEAN IF I'M GONNA FIX STREET A, I LIVE IN STREET B, WHAT DO I CARE ABOUT? STREET A? SO IT IT WOULD, IT WOULD BE THE SAME THING.

AND SO I GUESS FOR ME IT WOULD JUST DEPEND ON WHAT PROJECTS, UM, BECAUSE I CERTAINLY DON'T WANNA PUT ONE IN JEOPARDY.

UM, AND SO IF THE CONSENSUS IS THAT WE'RE OKAY WITH WHATEVER'S ON THE CIP NOW AND WE'RE OKAY NOT ADDING ANY OTHERS, UM, THEN I'M OKAY WITH THAT.

BUT IF WE FEEL THAT THERE WOULD BE ONE IN JEOPARDY, THEN I WOULD BE OKAY ADDING IT TOO, THE CO.

OKAY.

AND JUST TO BE VERY CLEAR ON EXPECTATIONS AS WE CONTINUE TO WORK FORWARD OR THROUGH ALL THIS, WHEN WE DO THIS CO WHEN, AND I'M SPEAKING GENERAL FUND ONLY, OKAY.

WHEN WE DO THIS THIS NEXT CO FOR THE FIRE STATION AND POSSIBLY THE EOC, UM, IT IS OUR INTENT TO NO LONGER DO COS AT THAT POINT WE ARE ONLY WORKING

[00:45:01]

THAT'S, I'M MAKING SURE I'M UNDERSTANDING THAT FROM THIS COMMITTEE'S UNDERSTANDING THAT COS FOR GENERAL FUND ONLY GENERAL OBLIGATION BONDS ARE THE, THE, THE PATH FORWARD WITH DEBT.

THAT'S MY UNDERSTANDING.

YES.

MOVE THAT DIRECTION.

OKAY.

ALRIGHT.

UM, WITH THAT SAID, WE CURRENTLY ARE PREPARING FOR NOVEMBER.

I UM, DID Y'ALL WANT TO PUSH IT TO MAY OF THE FOLLOWING YEAR OF 26? OH MAY 25.

DID YOU HAVE AN ELECTION IN MAY? NOT YET.

OH, YOU WANT MAY OF 25? NO, NO, NO, NO, NO, NO, NO, NO WE ARE NOT.

THAT'S AT, I WAS, NO, NO.

SO JONATHAN PRESENTED A TIMELINE FOR MAY.

THE TIMELINES ARE SIMILAR.

YEAH, IT'D BE ROUGHLY THE SAME.

IF YOU WERE TO DO MAY 26TH, IT WOULD BE CHANGE ALL THESE TO 20.