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I NOW CALL TO ORDER THE CITY COUNCIL SPECIAL MEETING ON TUESDAY, APRIL 15TH, 2025 IN THE BAYTOWN FIRE TRAINING PILLS, ROOM B AT 7 0 22 BAYWAY DRIVE, BAYTOWN, TEXAS.
AN ANNOUNCEMENT OF FORM AT 3:45 PM WE'RE GONNA OPEN UP WITH
[1. CITIZEN COMMENTS Notice is hereby given that in accordance with the Texas Open Meetings Act, Texas Government Code, Chapter 551, prohibits the City Council 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 City Council Session.]
CITIZEN COMMENT.WE HAVE A FEW PEOPLE TO SPEAK FOR CITIZEN COMMENT.
THE PURPOSE OF CITIZEN COMMENT IS TO GIVE ALL INTERESTED CITIZENS THE RIGHT TO EXPRESS THEIR VIEWS.
EVERYONE DESIRING TO SPEAK SHOULD HAVE THEIR, SHOULD HAVE EITHER SIGNED THE APPROPRIATE LIST OF THE FOUR YEAR OR EMAIL THE CITY CLERK PRIOR TO THE PRO POSTED TIME OF THIS MEETING.
EACH CITIZEN SHALL GIVE HIS OR HER NAME AND ADDRESS AN ORDER TO PROVIDE A PROPER RECORD OF THESE COMMENTS.
THE RULES ALLOW EACH PERSON ONE MINUTE TO SPEAK.
A CITIZEN MAY PASS HIS OR HER TIME TO ANOTHER PERSON WHO HAS REQUESTED TO ADDRESS COUNSEL.
HOWEVER, NO CITIZEN'S REMARKS SHALL BE SHALL EXCEED.
EITHER THE ONE MINUTE OR THE THREE MINUTE LIMIT MAY BE EXTENDED BY A MAJORITY OF VOTE OF COUNSEL.
I ENCOURAGE EVERYONE TO BE AS BRIEF AND TO THE POINT AS POSSIBLE.
PLEASE, TO KEEP IN MIND, COUNSEL CANNOT DISCUSS OR DELIBERATE ON ITEMS FOR WHICH PUBLIC NOTICE HAS NOT BEEN GIVEN ON THIS AGENDA, AGENDA.
AND WE HAVE A ONE PERSON, MR. DON IKE, PLEASE STATE YOUR ADDRESS.
MY ADDRESS, 14 ONLY WOOD ROAD.
UH, FROM WHAT I UNDERSTAND, THE MAIN THING TOPIC AT THIS MEETING IS GONNA BE FINANCE.
AND I THINK BEFORE Y'ALL SPEND A PENNY, EVERYBODY OUGHT TO GET TOGETHER AND YOU SET YOUR PRIORITIES STRAIGHT.
'CAUSE SOME PRIORITIES HAVE TO BE NUMBER ONE.
AND IN MY OPINION, THAT WOULD BE PEOPLE'S HEALTH AND SAFETY.
SOME PRIORITIES OUGHT TO BE NUMBER TWO.
I THINK THAT OUGHT TO BE IS IT LEGAL OR ILLEGAL? WHAT YOU'RE DOING.
BECAUSE FROM WHAT I'VE SEEN OF THE CITY FOR THE LAST THREE YEARS, HEALTH AND SAFETY DOESN'T COME ANYWHERE NEAR THE TOP.
AND STATE LAW, IF IT'S CONVENIENT, YOU'LL FOLLOW IT.
IF IT'S NOT, WHO CARES? WELL, LEMME TELL YOU THE CITIZENS CARE AND WE NOTICE IT AND WE CARE MORE ABOUT IT WHEN WE TALK ABOUT IT AND WE SEE WHAT WE CONSIDER NOT REAL BRIGHT THINGS DONE.
UH, THAT'S, I JUST SAY YOU GOTTA SPEND MONEY WHERE IT'S NEEDED.
NOT, I MEAN, YEAH, IT'S NICE TO, LET'S BUILD US A STAIRWAY TO HEAVEN EVEN THOUGH WE'VE NEVER DONE IT.
WE DON'T KNOW ANYTHING ABOUT IT.
OKAY, MS. YEAH, I APPRECIATE YOUR TIME, BUT THAT WAS YOUR ONE MINUTE.
THANK YOU FOR YOUR COMMENT THERE BEING NO ONE ELSE DESIRING TO SPEAK.
THIS CONCLUDES THE CITIZEN'S COMMENT PORTION OF THE AGENDA ONTO AGENDA ITEM TWO, A
[a. Discussion of City Policy Topics: Preliminary Budget for Fiscal Year 2026 Updates on City Projects City Operational Reporting]
DISCUSS DISCUSSION OF CITY POLICY TOPICS, PRELIMINARY BUDGET FOR FISCAL YEAR 2026, UPDATES ON CITY PROJECTS AND CITY OPERATIONAL REPORTING.SO GOOD AFTERNOON, MAYOR AND COUNCIL.
UM, OVERALL TODAY, UH, THOSE THREE TOPICS ARE KIND OF SUMMARIZED AS, UH, THE TALKING POINTS THAT WE WILL GO OVER ARE THE GEO BOND, UH, FOR 2025 OR 2026.
SERVICE DELIVERY CHANGES, BOTH IN 25 AND 26.
AND THEN, UH, ADDITIONAL DIRECTION ON THE TAX RATE, UH, AS WE BUILD OUT THE BUDGET FOR FY 26.
NOW, THE INTENT, THIS IS SCHEDULED FOR A TWO DAY, UH, MEETING.
UH, WE ALSO HAVE, UH, A POSSIBLE PROJECT UPDATE THAT WE WOULD GO OVER, UM, AS PART OF ALL THIS, BUT WE THINK THAT WE CAN MOVE THAT TO THE NEXT COUNCIL MEETING INSTEAD OF HAVING A MEETING TOMORROW.
IF WE CAN GET THROUGH EVERYTHING TODAY, IF Y'ALL ARE OKAY WITH THAT, WE'LL TRY TO, WE'LL TRY TO KNOCK THIS OUT TODAY IF EVERYBODY'S OKAY WITH THAT AND NOT HAVE A MEETING TOMORROW AS WELL.
I DIDN'T FEEL ANYBODY WOULD FIGHT ME ON THAT.
UM, BUT IF THIS DOES TAKE LONGER THAN EXPECTED, THEN WE HAVE THE OPPORTUNITY TO MEET TOMORROW AS WELL.
SO WE, WE ARE SCHEDULED FOR TWO DAYS.
UH, SHOULD THIS, UH, TAKE A LITTLE BIT OF EXTRA TIME.
SO, UH, TO KICK OFF WITH THE GEO BOND, THERE ARE A FEW THINGS THAT WE NEED TO, UM, UNDERSTAND TO ACTUALLY HAVE A GOOD DISCUSSION AROUND THIS.
FIRST, WE NEED TO UNDERSTAND OUR HISTORICAL PHILOSOPHY WHEN IT COMES TO DEBT.
UH, WE NEED TO LOOK AT WHERE WE ARE NOW.
UH, WE NEED TO ACTUALLY MAKE A DECISION AND THEN COUNSEL WILL UNDERSTAND THE NEXT STEPS, UH, AROUND ALL OF THIS.
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HOW WE GOT HERE, UM, OVER THE PAST FEW YEARS, UH, OR FOR THE PAST DECADE PLUS MAYBE, UH, THE CITY OF BAYTOWN HAS USED, UH, CERTIFICATES OF OBLIGATION FOR ALL OF OUR DEBT PRACTICES.AND UPON MY ARRIVAL, UM, THERE WAS A LOT OF CONVERSATION AROUND SHOULD WE MOVE AND DO WE NEED TO MOVE, UH, FOR GEO BONDS ONLY, GENERAL OBLIGATION BONDS ONLY AS THE WAY TO DO THAT.
A LOT OF THAT DRIVING FORCE WAS PHILOSOPHICAL, UH, STANCES FROM SOME OF THE CITY COUNCIL MEMBERS RECOMMENDATIONS FROM THE FINANCE COMMITTEE AND THEN ALSO FUTURE PLANNING AROUND WHAT THE STATE WAS DOING.
RIGHT? AND IT'S LIKE, OKAY, DO WE NEED TO GO AHEAD AND GET IN FRONT OF WHAT'S HAPPENING IN, UH, WITH THE STATE SO THAT WE ARE ARE NOT GONNA BE, UH, HAMSTRUNG WHEN THE STATE ACTUALLY SAYS YOU CAN'T USE COS ANYMORE, UH, FOR OUR DEBT INSTRUMENT.
AND SO IN 2024, WE MADE THE DECISION THAT WE WILL START USING GENERAL OBLIGATION BONDS AS THE PRIMARY, UH, ASPECT FOR DEBT.
AND WHEN WE MADE THAT DECISION, WE SAID, OKAY, WE STILL HAVE TO FINALIZE SOME OF OUR DEBT PIECES, UH, WITH COS, WHICH WILL BE PRIMARILY WATER AND SEWER WILL BE DRIVEN WITH, UH, COS AND, UM, THAT AGREES WITH WHAT THE STATE IS TRYING TO WORK ON AS WELL.
AND THERE WILL BE ONE MORE CO THAT WILL BE ISSUED IN 2020 IN FISCAL YEAR 25.
AND THEN WE WOULD PLAN ON OUR FIRST GENERAL OBLIGATION BOND BEING IN NOVEMBER OF 25, WHICH IS FISCAL YEAR 26.
THAT WAS THE OVERALL PLAN, UH, FOR WHERE WE ARE NOW.
AND THEN ONE, ONCE WE GOT TO THE RETREAT IN FEBRUARY, WE THEN HAD CONVERSATIONS, UM, AROUND THE OVERALL DEBT OF WHAT OUR CIP PIECE LOOKED LIKE, AND THAT THAT WAS, THAT WE HAVE TO ADDRESS ROUGHLY $500 MILLION IN INFRASTRUCTURE OVER THE NEXT, YOU KNOW, 10, 15 YEARS.
UM, AND THEN WE LOOKED AT DIFFERENT SCENARIOS AND WHAT DOES THAT LOOK LIKE? AND WE WERE LIKE, HEY, THIS IS ALL PLAYING OUT.
LET'S GIVE DIRECTION, UH, CREATE THE BOND COMMITTEE.
AND WE ENDED UP BEING AT, HEY, WE'RE GONNA HAVE, LET'S SELECT ROUGHLY 200 MILLION, UM, SORRY, MY A DD IS GOING, UH, LET'S GET OUR 200 MILLION.
AND THEN THE BOND COMMITTEE WILL HELP PUSH THAT DOWN TO MAYBE A HUNDRED TO 150 MILLION.
AND THEN WE WILL MAKE A, A FINAL RECOMMENDATION ON THAT BEFORE WE CALL FOR THE VOTE IN NOVEMBER.
AND WE FELT OKAY WITH THAT AROUND JANUARY, FEBRUARY OF THIS YEAR.
AND THEN A LOT OF DIFFERENT PARAMETERS STARTED COMING INTO PLAY, A LOT OF CONVERSATIONS CAME INTO PLAY, AND THEN IT WAS LIKE, OKAY, WE'VE NOW CREATED A BOND COMMITTEE.
UM, DO WE ALSO NEED TO HAVE A FOLLOW-UP DISCUSSION ON IF WE ACTUALLY NEED TO HAVE THIS GO BOND IN 25 OR, UH, NOVEMBER OF 25? AND SO THAT IS CURRENTLY WHERE WE ARE NOW.
SO THOSE CONVERSATIONS HAVE LED US TO THIS POINT OF UNDERSTANDING WHAT WE NEED TO LOOK AT WHEN IT COMES TO CONSIDERATIONS ON IF WE STAY THE COURSE FOR FY HAVING THE BOND ELECTION THIS YEAR, NOVEMBER OF 2025, OR IF WE MOVE IT TO THE, UH, BOND YEAR NOVEMBER OF 2026.
AND SO IF WE STAY WITH BOND YEAR, IF WE STAY WITH, UH, NOVEMBER, 2025 AS THE, AS THE BOND ISSUANCE, WE HAVE TO LOOK AT THE RISK THAT'S ASSOCIATED WITH THAT, BOTH ON THE YES AND THE NO.
AND THE BIG BIGGEST RISK THAT YOU HAVE IN FRONT OF YOU RIGHT NOW IS GOING TO BE THAT WE HAVE THE CCPD AND THE FIRE CONTROL BOARDS ARE UP FOR RENEWAL, UM, AT, IN NOVEMBER OF 25 THIS YEAR AS WELL.
AND SOME OF THE COMMENTS THAT I'VE RECEIVED IS, HEY, THAT'S NOT A BIG DEAL.
UM, THE CITIZENS REALLY, UH, GET BEHIND THOSE, THOSE THOSE GO THOSE PAST.
WELL, THAT'S NOT NECESSARILY THE CASE.
THE, THE LAST PD ONE DID THE CCPD ONE DID FAIL.
UH, THERE WAS A CHANGE WITH THAT WHERE IT WENT TO.
I THINK THEY WERE TRYING TO EXTEND THE TERMS ON THAT.
AND I DON'T THINK THAT'S WHAT THE CITIZENS, UH, APPRECIATED WAS THE LONGER TERM OF CCPD.
AND SO IT CAME BACK, UH, SHORTLY AFTER, AND IT DID PASS, UM, BACK WITH THIS, THIS THE STANDARD RENEWAL, UH, TIMEFRAME THAT IT HAD BEFORE.
UM, BOTH OF THOSE ROUGHLY HOLD ABOUT $5 MILLION IN COST, UH, OR EXPENSE THAT, UH, BOTH PD AND FIRE USED FOR OPERATIONS.
IF THOSE TWO DO FAIL, UM, SHOULD THE
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BALLOT PIECE, UH, BE SOMETHING THAT IS CONTENDING WITH 'CAUSE BY LAW, HOW EVERYTHING WILL BE WRITTEN, EVERYTHING WILL BE LOOKED AT AS A TAX RATE INCREASE EVEN THOUGH BOTH CCPD AND FIRE CONTROL ARE ALREADY THERE.HOW IT TECHNICALLY WORKS IS THAT SINCE THEY WILL EXPIRE, THEY WILL NO LONGER BE THERE.
AND THEN IF IT'S VOTED BACK, YOU'RE VOTING BACK A TAX RATE INCREASE EVEN THOUGH IT'S THE STATUS QUO OF WHAT IT WAS BEFORE.
AND THE, THE, THE PIECE OF THAT IS WHAT DO YOU DO WITH THE $5 MILLION OF EXPENSES THAT ARE IN THERE? DO WE NOT MOVE FORWARD WITH THOSE OR DOES THE GENERAL FUND HAVE TO RECOVER THOSE? SO THAT'S ONE EXPENSE ITEM THAT WE HAVE TO CONSIDER.
UM, IF WE PUT THE PROJECTS ON AND THE CITY AND IT DOESN'T PASS, UH, CURRENTLY THE STATE LAW SAYS IF IT DOES NOT PASS, YOU ARE NOT ABLE TO USE DEBT, UM, COS OR OTHER TAX NOTES FOR THREE YEARS ON THOSE PROJECTS THAT ARE IDENTIFIED IN THE BOND LIST.
OKAY? UH, THERE'S CURRENT LEGISLATION IN THE STATE RIGHT NOW THAT'S GONNA CHANGE THAT THREE YEAR TARGET TO FIVE YEARS.
UM, IT IS LIKELY TO PASS, IT HAS ALREADY PASSED THE SENATE AT THIS POINT.
IT'S IN THE HOUSE NOW AND IT IS EXPECTED TO PASS.
SO THAT THREE TO FIVE YEARS IS WHAT THE CURRENT LEGISLATION IS, AND FIVE YEARS IS MOST LIKELY WHAT IT'S GONNA BE BY THE, UH, END OF NEXT MONTH.
UM, AND THE OTHER PIECE IS THAT WE WILL STILL MOVE FORWARD WITH FIRE STATION TWO AS PART OF THE CO ISSUANCE IN THE SPRING SUMMER OF THIS YEAR, UH, IN AN EFFORT TO KEEP THAT GOING, UM, AND NOT, NOT BE IN A RISK FACTOR WITH THE BOND ISSUANCE ITSELF.
IF WE SAY NO, UH, THE, THE BOND COMMITTEE THAT WAS CREATED WOULD HAVE MORE TIME.
THEY WOULD STILL BE, THEY WOULD STILL BE AT PLAY AND THEY CAN STILL BE UTILIZED FOR MORE EDUCATION, MORE OUTREACH AND HAVE A, A PROBABLY ABOUT A YEAR OR SO TO REALLY TALK TO THE CITIZENS ABOUT ALL THE BOMB PROJECTS, DO A LITTLE BIT MORE EDUCATION WITH THE COMMUNITY AND, AND REALLY MOVE FORWARD WITH WHAT THEIR CHARGE CURRENTLY IS ANYWAYS, IF WE ALSO SAY NO, THE CITY'S GEO BOND WOULD BE ON THE GOOSE CREEK CONSOLIDATED ISD GEO BOND IN 2026.
THEY WERE GOING TO DO THAT THIS YEAR.
AND THEN THEY HEARD THE CITY WAS GONNA DO A GEO BOND IN 2025 AND THEY PUSHED THEIRS UNTIL 2026.
SO OURS WOULD BE ON THE SAME TIMEFRAME WITH GOOSE CREEK.
IF YOU ALSO SAY NO, WE DO NEED TO LOOK AT SOME OF THE THINGS THAT ARE ON THE GO BOND THAT MAY NEED TO BE PUSHED FORWARD WITH THE CO OR THE FIRE STATION, UM, THAT PUBLIC WORKS COULD ADDRESS WITH SOME OF THE STREETS AND SOME OF THE DRAINAGE THAT POSSIBLY NEEDS TO BE ADDRESSED IN 2026.
AND BEFORE WE JUMP INTO A LITTLE BIT OF QUESTIONS, I WANT TO LOOK AT ONE MORE SLIDE THAT HAS TO DO WITH GOOSE CREEK OR WITH THE SCHOOL BO SCHOOL BOND ELECTION RESULTS IN TEXAS.
WHAT'S INTERESTING TO SEE HERE IS THAT PRE COVID PASSAGE RATE WAS ABOVE 70% FOR ALL BONDS IN THE STATE OF TEXAS.
SO THIS IS SCHOOL BOND ELECTION RESULTS ONLY.
OKAY? UH, THIS HAS NOTHING TO DO WITH MUNICIPAL BONDS.
AND THEN, UH, IN MAY OR IN NOVEMBER OF 2020, THINGS SHIFTED A LITTLE BIT.
UM, AND THE, I WAS JUST ABOUT TO DRAW RUN
UM, MAY PASSAGE RATES STAYED FAIRLY NORMALIZED COMPARED TO THE OTHER ONES PRE COVID.
THE NOVEMBER PASSAGE RATES DROPPED SIGNIFICANTLY.
UM, I'M NOT GONNA SPECULATE ON WHAT WAS HAPPENING AT THE TIME.
UH, I WILL TELL YOU THAT THE NUMBERS, THE PROPOSITIONS, UH, THAT WERE PUT FORWARD INCREASED A LOT.
UH, AS YOU CAN SEE THAT UP HERE, THE PROPOSITIONS ACTUALLY INCREASED QUITE A BIT.
UH, BUT THIS IS A CONSIDERATION POINT THAT WE HAVE TO LOOK AT WHEN IT COMES TO UNDERSTANDING IF OUR BOND WAS GOING TO BE PUT, UM, WITH THE SCHOOL BOARD'S BOND IN 2026.
AND SO SOME OF THE THINGS THAT I WANTED TO GO OVER WITH YOU IS SOME OF Y'ALL FAVORITE STUFF WHEN WE ASK Y'ALL QUESTIONS, RIGHT? AND SO, YEAH, I'M, I I WOULD, ONE, YOU HAVE THE SAME THING FOR MUNICIPALITY BONDS.
I DO NOT HAVE THIS, THIS WAS PAID FOR BY THE SCHOOL AND WAS SHARED WITH ME.
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SOMEBODY TO PROVIDE THIS FOR US, WE CAN PAY SOMEBODY.BUT I'M TRYING TO CONSERVE RESOURCES RIGHT NOW.
I WAS JUST WONDERING IF MUNICIPALITY BONDS COULD BE THAT PATTERN WE HAVE.
BUT THIS IS THE STATE OF TEXAS ALSO ALL YEAH.
THIS IS A TREND FOR ALL SCHOOL DISTRICTS FOR THE STATE OF TEXAS.
I WAS WANTING TO KNOW ALL MUNICIPALITIES THERE FROM OURS.
SO MY FIRST QUESTION TO YOU'ALL IS WHAT ARE THE KEY INFRASTRUCTURE NEEDS IDENTIFIED, UM, IN THE CURRENT BOND AND THE POINT THE, THE CURRENT LIST IS BEING PASSED OUT? UM, THE, THE POINT OF UNDERSTANDING THE LIST IS NOT TO DEBATE THE PROJECTS THAT ARE ON THE LIST.
OKAY? YOU HAVE STAFF RANKINGS IN THE TOP LEFT CORNER FROM ONE DOWN TO THE SECOND PAGE THAT GOES TO A TOTAL OF, UH, OH, IT'S DOUBLE DUPLICATED.
WELL, THE FRONT PAGE ON ONE SIDE ONLY MATTERS BECAUSE WE WERE ONLY SHOOTING AT DOING A HUNDRED MILLION ANYWAYS.
UM, AND SO YOU CAN SEE THAT THE FIRST FOUR PROJECTS MAKE UP A HUNDRED MILLION DOLLARS, JUST FOUR PROJECTS MAKE UP A HUNDRED MILLION.
AND, UM, MOST OF THOSE ARE JUST STREETS.
IF THAT, UH, ALL OF THAT IS JUST STREETS, IF WE WERE TO JUST MOVE FORWARD WITH A HUNDRED MILLION.
AND SO, BUT THAT'S NOT THE POINT OF THE ACTUAL PIECE, RIGHT? IT'S JUST TO UNDERSTAND THE PRIORITY PROJECTS THAT WE HAVE IN PLAY.
UM, NOW THAT I'M LOOKING AT THIS, YES, THIS IS CORRECT, UM, AND JUST UNDERSTAND WHERE WE'RE AT AND I'LL JUST GIVE A MINUTE TO PERUSE THAT AND THEN I'LL ASK ANOTHER QUESTION.
I ACTUALLY AM, SO MY FIRST QUESTION TO Y'ALL, 'CAUSE I, I WOULD LIKE TO HEAR WHAT'S, WHAT'S Y'ALL ARE HEARING IS WHAT FEEDBACK HAS BEEN RECEIVED SO FAR FROM THE COMMUNITY ON THE POTENTIAL BOND? WELL, I'LL START.
UM, MOST PEOPLE WERE GLAD TO KNOW THAT WE WERE, THAT I'VE SPOKEN TO AT DIFFERENT PLACES, WE'RE GLAD TO KNOW THAT WE WERE GOING TO GO OUT FOR, UM, A GEO.
THEY LIKED THE TRANSPARENCY OF IT.
THEY LIKED THE FACT THAT THE CITIZENS, UH, HAD THE SAY SO.
HOWEVER, I HAVE NOT MET ONE PERSON YET.
EVEN THE ONES THAT ARE IN FAVOR THAT THINK IT'S GOING TO PASS, EVERYONE I'VE SPOKEN TO HAS SAID, YOU KNOW, IT'S GONNA FAIL.
AND NO RHYME OR REASON, JUST THAT WAS THE SENTIMENT.
WE HAVE TWO AS FAR AS THE CIP COMMITTEE WHEN WE VISITED ABOUT THAT, AND, AND I'VE HEARD BASICALLY THE SAME THING.
I, I'VE HEARD IT WITH A LITTLE BIT OF A TWIST.
IT'S KIND OF LIKE IF WE BRING FORWARD A REASONABLE BOND PROPOSAL FOR NEEDS ONLY, IT'S, IT'S GONNA BE QUESTIONABLE, BUT PROBABLY COULD PASS.
THIS, THIS IS NOT THE LATEST LIST THAT WE TALKED ABOUT IN CIP, SO I'M A LITTLE DISCOURAGED THAT THAT'S MY DATED LIST.
THAT'S THE LAST ONE I SENT Y'ALL.
I DON'T, THAT'S THE LAST ONE THAT'S BEEN SENT TO COUNSEL.
I DON'T KNOW IF I KNOW YOU AND FRANK AND ALL THEM ARE WORKING ON SOMETHING.
YEAH, WE, IN OUR COMMITTEE, WE TALKED ABOUT IT AND REARRANGED QUITE A FEW OF THESE.
SO, AND I'VE HEARD THE SAME THING THAT IF WE COME OUT WITH A LOT OF WANTS, IT'S GONNA DIE.
BUT IF WE COME OUT WITH HARD NEEDS, I THINK THE GENERAL PUBLIC WOULD SAY, OKAY, THOSE ARE HARD NEEDS.
THOSE ARE THE THINGS WE NEED OR WANT AS WELL.
BUT THAT I, IT'S GONNA BE A TOUGH SELL.
THAT'S WHY THE CIP COMMITTEE AND WE DISCUSSED THAT WE WANTED TO KEEP IT AS TIGHT AS WE COULD AND STRICTLY NEEDS ANYTHING OTHER THAN AN ABSOLUTE NEED.
IF IT GOES ON THERE, WE MIGHT AS WELL JUST SHOOT IT OURSELVES, RIGHT? SO THAT'S, THAT'S THE POSITION THAT WE'VE HAD.
AND TO MR. LU'S POINT, COUNSEL, I'M SORRY, UH, TO MR. LUSHER'S POINT, THE, THIS LIST IS NOT TO BE THE THING THAT'S GONNA BE VOTED ON, IT'S JUST THE UNDERSTANDING OF WHAT PROJECTS ARE.
SO, SO, UM, MIGHT HAVE BEEN IN LINE AS WELL, BUT WHEN I WAS ASKED, AS LONG AS YOU GO OUT WITH WHAT IS NEEDED, AND I'M LIKE, WELL, THAT COULD BE SUBJECTIVE, JUST LIKE THE WANTS.
UM, WILL, WILL YOU WANT TO VOTE ON WEST BAYTOWN DRAINAGE? WEST BAYTOWN DOESN'T NEED ANY MORE IMPROVEMENT.
WOULD YOU WANT TO IMPROVE DRAINAGE AND DE BE NOW I DON'T LIVE THERE.
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SO, UM, FOR THE MOST PART, I THINK OUR CITIZENS, BY HAVING THE INPUT, I WOULD HOPE THAT THEY DO THEIR HOMEWORK AND REALLY LOOK AT THE DIFFERENT PROJECTS INSTEAD OF, YOU KNOW, BRINGING IN BIAS.BECAUSE THIS IS THE FIRST TIME THAT WE'RE DOING A GEO IN A VERY, VERY LONG TIME.
SO WE ARE PUTTING OUR TRUST IN THEM JUST AS WE HOPE THEY HAVE TRUST IN US.
AND SO WHAT I FEEL IS THAT WE, AS FAR AS THE BOND COMMITTEE SHOULD ADD THE IMPACT TO THE ENTIRE CITY AT ANY OF THE PROJECTS THAT COME UP.
NOT JUST THE IMPACT TO A CERTAIN NEIGHBORHOOD OR A ROAD OR WHATEVER.
WHAT IS THAT GONNA TO DO TO THE CITY AND HOW WILL MORE PROJECTS BE ABLE TO, TO COME OUT OF WHATEVER IMPROVEMENT WE'RE DOING? AND SO, AND, AND I THINK THAT'S WHAT THE MESSAGE I'VE BEEN CONVEYING.
IT'S LIKE, DON'T PUT ANY OF YOUR BIASES IN THERE.
UM, AND THINK ABOUT THE CITY AS A WHOLE AND HOW WE'RE MOVING TO IMPROVE.
AND, UM, AT LEAST THAT'S THE MESSAGE I'VE BEEN SENDING AND THE FEEDBACK THAT I'VE BEEN GETTING.
IT'S LIKE, I DON'T LIVE IN THOSE NEIGHBORHOODS.
WHAT ARE YOU GONNA DO FOR MINE? SO COUNCILMAN GRIFFITH, UH, SOME OF THE FEEDBACK I'VE BEEN GETTING, SOME SIMILAR, BUT, UM, REALLY PEOPLE ASKING FOR A TRANSPARENT PROCESS, UM, TO GIVE THE, THIS BOND THE BEST CHANCE TO SURVIVE.
IT NEEDS TO BE AS TRANSPARENT AS POSSIBLE.
UM, SOME PEOPLE HAVE SOME CONCERNS WITH SOME OF THE QUOTE UNQUOTE VANITY PROJECTS THAT'S BEEN LAID OUT.
YOU KNOW, YOU KNOW, HAVE WE, YOU KNOW, SPENT MONEY IN THE WRONG PLACE IN THE PAST AND THAT MIGHT AFFECT THE BOND.
UM, UH, AGAIN, I, I DON'T LIKE TO USE KNEES VERSUS ONCE, UM, BUT I LIKE TO USE WORDS, PRIORITIZE, UH, THAT COMES TO MIND.
SO ARE WE PRIORITIZING, UM, WHAT, WHAT WE NEED? WHAT, WHAT IS IN DIRE NEED OF FIXING WHAT'S IN DIRE NEED OF BEING RECUPERATED, RIGHT? SO WE'RE TALKING ABOUT STREET, SOME OF THOSE PROJECTS THAT, THAT ARE, YOU KNOW, PAST LIFE INFRASTRUCTURE NEEDS.
SO THAT'S KIND OF THE FEEDBACK I'M, I'M GETTING AND THE CONCERNS ABOUT THE BOND COUNCIL.
IT'S ANY DIFFERENT THAN WHAT'S ALREADY BEEN SAID.
I MEAN, YEAH, IT'S, IT'S, PEOPLE WANTED TO BE FOCUSED ON INFRASTRUCTURE NEEDS.
THAT'S, THAT'S BASICALLY WHAT I'VE BEEN HEARING.
WELL, I WILL SAY THIS, UM, WHEN, WHEN IT COMES DOWN TO TRANSPARENCY, THE BOND CO, YOU PUT A BOND COMMITTEE TOGETHER TO BRING CITIZENS IN SO THEY'LL KNOW AND THEY CAN DECIDE WHAT MORE TRANSPARENCY CAN YOU ASK FOR, RIGHT? AS FAR AS EDUCATING, I WOULD SAY THAT THAT NOT ONLY FALLS UPON US, BUT UPON STAFF AND THE BOND COMMITTEE ASK QUESTIONS.
AND I WOULD EVEN ENCOURAGE THE BOND COMMITTEE IF WE DECIDE TO GO OUT FOR A BOND OR WHEN WE DECIDE, DECIDE TO GO OUT FOR A BOND, TO GO OUT AND TAKE A LOOK AT SOME OF THESE MOBILITY INFRASTRUCTURE PROJECTS SO THAT THEY COULD SEE THAT IT WOULD BE A NEED, EVEN THOUGH IT MAY NOT BE IN YOUR NEIGHBORHOOD, IN YOUR DISTRICT, BUT HOW IT'S GOING TO AFFECT YOUR NEIGHBORS.
UM, I'M A LITTLE CONCERNED FROM WHAT I'VE BEEN HEARING, UM, SINCE JANUARY WHEN I'VE STARTED TALKING TO INDIVIDUALS TO ECHO WHAT ALL OF YOU HAVE SAID.
SOME PEOPLE ARE LIKE, WELL, IF IT'S NOT GOING TO BE THIS ROAD IN MY COMMUNITY, I'M NOT GONNA VOTE FOR IT.
AND I THINK THAT'S UNFORTUNATE FOR THE REST OF OUR COMMUNITY.
UM, WE SHOULD BE LOOKING OUT FOR EACH OTHER AND NOT JUST THE ROADS THAT WE MAY TRAVEL, BUT THINK ABOUT THE ROAD YOUR CHILD MAY TRAVEL, GOING TO VISIT A FRIEND.
THINK ABOUT THE ROAD THAT THE BUS MAY TRAVEL TO GET THE KIDS TO AND FROM SCHOOL IN WHATEVER DISTRICT IT, IT, IT MAY BE IN.
UM, AS FAR AS I'M CONCERNED, THINKING ALONG THOSE LINES, I THINK THE BOND COMMITTEE WOULD NEED AS MUCH TIME AS POSSIBLE TO REALLY CONSIDER EVERYTHING.
AND WE ALLOW THEM TO PICK AND CHOOSE WHAT'S ON THERE.
WE MAY HAVE OUR PRIORITIES HERE, BUT IN THE END THEY'RE VOTING ON IT, TALKING ABOUT TRANSPARENCY AND PRIORITIES.
ALLOW THEM TO PRIORITIZE THIS.
BUT I BELIEVE WE SHOULD GIVE THEM AS MUCH TIME AS POSSIBLE SO THAT THEY CAN DO THEIR DUE DILIGENCE.
AND THE BOND COMMITTEE IS GOING TO BE THE ONE RESPONSIBLE FOR GETTING THE SUPPORT.
I'M NOT GONNA SAY BUY-IN, I'M GONNA SAY THE SUPPORT FROM THEIR FRIENDS, OUR FRIENDS AND OUR NEIGHBORS.
UM, THAT BEING SAID, DO WE, DO WE REALLY THINK
[00:25:04]
NOVEMBER AND NOVEMBER ELECTION WOULD BE ENOUGH TIME TO ALLOW THEM TO DO THEIR DUE DILIGENCE? YES, MA'AM.SINCE THE QUESTION WAS, UH, WHAT WE'VE BEEN HEARING WHEN WE'RE OUT AND ABOUT, I, I DID WANT TO BRING UP SOMETHING ELSE THAT WAS ON ONE OF THE SLIDES THAT MR. REYNOLDS TALKED ABOUT, UH, THE CCPD AND THE, UM, THE FIRE BEING ON THIS BOND.
SO THAT WAS BROUGHT TO MY ATTENTION, UM, PROBABLY IN FEBRUARY.
I DIDN'T KNOW A LOT ABOUT THAT OR UNDERSTAND HOW IT, IT WOULD SHOW UP ON AT FOR A VOTE.
AND SO I ACTUALLY CALLED, UM, TWO FORMER COUNCIL MEMBERS AND, YOU KNOW, WAS TALKING ABOUT HOW I'M GETTING CONCERNS FROM CITIZENS ABOUT THE CCPD FAILING IF, IF THERE'S, UM, IF THIS BOND FAILS, JUST 'CAUSE THEY'RE ON THERE TOGETHER.
AND JUST TO PUT THIS IN A PERSPECTIVE, 'CAUSE YOU'RE ASKING WHAT THE COMMUNITY SAYS, I WOULD ASSUME, AND I KNOW THAT'S NOT ALWAYS A GOOD THING TO DO, BUT I WOULD ASSUME THAT FORMER COUNCIL MEMBERS WOULD PROBABLY, UM, HAVE MORE OF A HISTORICAL KNOWLEDGE AND ALSO, UH, BE MORE INVESTED IN, IN SOME OF THE, UM, RESEARCH WHEN IT COMES TO BONDS.
BOTH OF THESE COUNCIL MEMBERS SAID, OH, CCPD HAS NEVER FAILED.
IT'S NOT GONNA HAPPEN THIS TIME.
AND THEN, UM, I ACTUALLY DID COME IN AND TALK TO STAFF AND FOUND OUT THAT FROM MY UNDERSTANDING, CTP D'S ACTUALLY FAILED TWICE.
AND I, I HAVEN'T GONE TO LOOK IT UP MYSELF, BUT THE ONLY REASON I'M MENTIONING THAT, I DON'T THINK THAT'S THE BIG DRIVER IN THE CONVERSATION AT ALL.
I, I DON'T THINK THAT'S, UM, THE MOST IMPORTANT THING HERE, BUT I THINK IT JUST GOES ALONG WITH THE CONVERSATION OF, UM, ALLOWING OUR CITIZENS TO GO AHEAD AND MAKE THIS, UM, THIS DECISION EMPOWERING THE COMMITTEE TO DO THEIR DUE DILIGENCE.
ALL THESE THINGS ARE IMPORTANT, BUT I THINK WE NEED TO BE VERY, VERY COGNIZANT OF THE FACT THAT THERE HAVE BEEN LOTS OF BONDS THAT HAVE BEEN FAILING ALL AROUND.
AND WE JUST WANNA BE CAREFUL WITH THAT.
CCC, CCPD AND FIRE CONTROL ARE SALES TAX ISSUES AND WE NEED TO MAKE THAT REAL CLEAR.
IF WE LOSE, IF THEY GOES GO AWAY, THAT THAT DIFFERENTIAL COULD BE ABSORBED BY ANOTHER SALES TAXING ENTITY.
SO, SO WE NEED TO KEEP THAT WELL IN MIND THAT, THAT THIS IS SALES TAX.
WHEN WE TALK ABOUT FIRE CONTROL AND CCPD AND CCPD FAILED ONE TIME.
IT WAS, IT WAS VOTED IN ON A FIVE YEAR TERM.
THE CITY PROMISED THE CITIZENS IT WOULD BE A FIVE YEAR TERM.
AND AFTER THE FIRST FIVE YEAR TERM, THE CITY SAID, WELL, LET'S DO 10.
'CAUSE THE CITIZEN'S RESPONSE BACK, THE TRANSPARENCY, TRANSPARENCY ISSUE WAS YOU TOLD US YOU WOULD ALWAYS COME BACK EVERY FIVE YEARS.
WE WAITED THE TIME PERIOD, BROUGHT IT BACK UP FOR FIVE YEARS, IT PASSED OVERWHELMINGLY.
SO AGAIN, IT GOES BACK TO THE GO BOND.
IF WHATEVER WE DECIDE TO DO OR WHATEVER WE DECIDE TO PUSH FORWARD, WE'VE GOTTA STICK TO IT.
WE'VE GOTTA MAKE IT HAPPEN IN THE TIMEFRAME THAT WE'VE TALKED ABOUT SO THAT THE NEXT GO BOND, THE CITIZENS WILL GO, THEY DID WHAT THEY SAID THEY WERE GONNA DO AND THEY DID IT IN THE TIMEFRAME THEY SAID THEY WERE GONNA DO, AND WE'RE GONNA VOTE ANOTHER ONE IN.
THAT'S WHAT THE CITIZENS WANT IS CONSISTENCY FROM US.
AND, AND I THINK THAT'S, BUT I KNOW A LOT OF PEOPLE TRY TO TIE THE SALES TAX ISSUES TO THE PROPERTY TAXES CLAIM.
SO I DON'T, I'M NOT AS UNCOMFORTABLE WITH THE TWO SALES TAX TAXING ISSUES PASSING.
UM, I THINK EVERYBODY SEES THE BENEFIT OF THOSE.
IT IT'S JUST ON THE GO BOND FROM, AGAIN, FROM WHAT I'M UNDER UNDERSTANDING IT'S INFRASTRUCTURE IF IT'S NEEDED.
INFRASTRUCTURE CITIZENS ARE PRETTY POSITIVE ANYTHING OTHER THAN NEEDED INFRASTRUCTURE.
AND, AND I THINK THAT'S WHERE WE HAVE TO BE VERY CAUTIOUS ABOUT WHAT WE SELECT OR WHAT WE APPROVE GOING FORWARD WITH THE BOND COMMITTEE.
IT COULD BE, THE ISSUE WAS, IT'S NOT MY STREET, BUT IT IMPACTS YOU, WHETHER IT'S YOUR STREET OR NOT, UM, TYPE THING.
SO, UH, AND KEEP IT AS TIGHT AS WE CAN I SAY TIGHT, YOU KNOW, A HUNDRED MILLION, 50 MILLION.
IF WE GO OUT FOR TWO, $300 MILLION BOND, IT'S, IT'S NOT GONNA HAPPEN.
UM, WE ALREADY HAVE OUR BOND COMMITTEE MEMBERS MM-HMM
SO HAVE THEY BEEN ASKED THIS QUESTION? NO.
AND HAVE THEY BEEN, THIS IS ALL WITH COUNSEL RIGHT NOW.
WHEN WOULD WE GET TO THAT POINT WHERE THEY ALSO PROVIDE INPUT ON WHETHER, WE'LL DISCUSS THAT AT THE END OF THIS CONVERSATION.
THE, THE OTHER POINT OF FEEDBACK THAT I'VE GOTTEN WAS NOT, THEY DON'T WANT TO FEEL AS IF THIS IS BEING RUSHED.
I KEEP HEARING THAT, MAN, DON'T, DON'T SHOVE IT DOWN OUR THROAT.
LET US TAKE TIME TO ABSORB ALL OF THIS.
I ASK THEM, WHAT DO YOU CONSIDER RU, HOW WOULD YOU DEFINE BEING RUSHED?
[00:30:02]
IF WE HAVE FOUR OR FIVE MONTHS AND WE DON'T HAVE THAT MUCH OPPORTUNITY TO GIVE INPUT, LET, LET, LET, LET'S THINK ABOUT IT FOR A MINUTE.LET'S SAY WE SAY WE'RE GONNA GO FOR A BOND COMMITTEE, OR WE'RE GOING, WE'RE GONNA GO OFF FOR A GEO BOND, WE START MEETING IN MAY, END OF MAY, LET'S HURRICANE SEASON.
WHAT HAPPENS IF WE GET A HURRICANE OR SOME
THAT WAS ONE OF THE EXAMPLES GIVEN TO ME, AND IT KIND OF MADE SENSE.
I HADN'T THOUGHT ALONG THOSE LINES, BUT HEARING ABOUT IT, I WAS LIKE, I CAN UNDERSTAND THAT.
SO THE OTHER ISSUE THAT I'VE HEARD WAS TIME.
THEY WANT TO HAVE TIME TO ABSORB IT, AND I LIKE THE IDEA OF GIVING MORE TIME SO THAT THEY CAN BE FULLY EDUCATED.
CAN YOU, UM, JASON, CAN YOU REMIND US ON THE TIMELINE, SHOULD WE GO THE BOND THIS YEAR? RIGHT.
THE, SO THE TIMELINE WILL BE A, UM, UH, THE BOND COMMITTEE WILL DO, UM, A REVIEW AND TAKE THEIR SELECTIONS.
UM, TECH, IT WAS SUPPOSED TO START IN MARCH, BUT KNOWING, NO KNOWING THIS WAS COMING, IT'S BEEN DELAYED, BUT IT WAS MARCH THROUGH JULY I BELIEVE.
AND THEN CALL THE BOND IN, UM, AUGUST TO GET READY FOR THE ELECTION.
I BELIEVE THAT'S THE TIMELINE.
WE, WE HAVE A SLIDE WE'LL GO OVER IN A MINUTE, BUT, UM, SO THE DEADLINE IS AUGUST TO BE PUT ONTO THE NOVEMBER ELECTION.
I, I DON'T HAVE THE SLIDE IN FRONT OF ME RIGHT NOW, BUT IT'LL BE ON THE SLIDE.
IS THERE MORE OF A COST IF WE PUT IT IN 2026? OR DO WE HAVE OTHER THINGS THAT, THAT'S A GREAT QUESTION.
MY NEXT QUESTION IS, WHAT ARE THE FINANCIAL IMPLICATIONS FOR VERSUS 25 OR 2026? SO THERE, THERE ARE QUITE A FEW THINGS EVERYBODY SEE MM-HMM
THE, THE BIGGEST THING IS OUR TAX RATE.
CAN Y'ALL SEE THAT? THAT FORM? MM-HMM
SO THE TAX RATE IS BROKEN DOWN INTO TWO DIFFERENT CATEGORIES.
MAINTENANCE AND OPERATIONS AND YOUR DEBT RATE.
R I'M GONNA KEEP IT VERY SIMPLE.
I'M GONNA SAY IT'S 50 AND IT'S 20.
BUT THAT'S JUST FOR EASY MATH APPEAR.
IF YOU DON'T ISSUE THE DEBT LIKE YOU'RE PLANNING, WHAT'S GONNA HAPPEN IS, LET'S, LET'S SAY THAT THE TAX RATE STAYS EXACTLY THE SAME.
WHEN YOU MOVE INTO THE FOLLOWING YEAR, YOU'RE GONNA HAVE LESS DEBT ALL OF A SUDDEN.
AND SO LET'S SAY THAT THE M AND O GOES TO 60, OKAY? THE TAX RATE IS GONNA, OR THE DEBT PORTION IS AUTOMATICALLY GOING TO DECREASE TO 10.
SO THE THING THAT HAPPENS HERE IS IT LOOKS LIKE WE HAVE A WINDFALL OF CASH ALL OF A SUDDEN, RIGHT? IT'S GONNA LOOK LIKE A WINDFALL THAT THAT IS, THAT IS IN PLAY FOR THE TAX OR FOR THE MAINTENANCE AND OPERATION PORTION OF OUR, OUR CASH, RIGHT? AND SO FOR A 10 CENTS DIFFERENCE, IT'S GONNA LOOK LIKE WE, UM, HAVE AN EXTRA $20 MILLION ALL OF A SUDDEN IN THIS SCENARIO.
OKAY? BUT WE DON'T, RIGHT? BECAUSE WHAT WE WANT, WE DON'T WANNA SPEND THAT EXTRA CASH THAT WE HAVE, SO IT NEEDS TO BE PUT IN RESERVE.
BUT THEN YOU HAVE DIFFERENT CONVERSATIONS WITH THE WHOLE ORGANIZATION, THE CITY SAYING, HEY, THERE'S NO REASON TO KEEP THAT EXTRA CASH AT THIS POINT, GO DOWN TO 60 CENTS.
THAT'S THE CONVERSATION THAT'S GONNA COME TO YOU.
BECAUSE IF THAT 10, THAT 10 EXTRA CENTS DOESN'T HAVE ANYTHING ATTACHED TO IT, RIGHT? IF THERE'S NO EXPENDITURE ATTACHED TO IT, YOU DON'T HAVE ANYWHERE TO PUT IT, RIGHT? SO IT LOOKS LIKE FLUFF TO CITIZENS, IT LOOKS LIKE FLUFF TO PEOPLE.
AND SO YOU WOULD THEORETICALLY SAY, HEY, JUST REDUCE THIS DOWN TO 60 CENTS SO THAT, THAT OVERALL, THIS DOESN'T REALLY CHANGE.
YOUR MAINTENANCE AND OPERATION STAYS AT 50 AND YOUR DEBT RATE JUST DECREASES.
THEORETICALLY, THAT'S WHAT THAT WOULD LOOK LIKE.
BUT WHEN IT'S TIME TO ISSUE THE NEXT DEBT, WHEN YOU, SORRY, RYAN, WHEN YOU ISSUE THE NEXT DEBT, WHEN YOU POST THE DEBT PIECE, THAT 10 CENTS IS GONNA GO FROM 10 CENTS TO 20 CENTS.
AND SO IT LOOKS LIKE A 10 CENTS TAX INCREASE, UH, FOR THE PEOPLE TO VOTE ON THAT BOND.
AND SO THAT WHEN YOU'RE VOTING ON
[00:35:01]
THAT, YOU HAVE THIS GIANT FLUCTUATION THAT PEOPLE ARE GONNA BE VOTING ON.AND WHEN YOU DO DEBT, YOU WANT TO TRY TO KEEP IT AS STABLE AS POSSIBLE, UH, SO THAT IT DOESN'T LOOK LIKE LARGE FLUCTUATIONS IN A TAX RATE TO THE PEOPLE.
AND SO IT'S JUST, IT'S A FINANCIAL IMPLICATION THAT YOU HAVE TO UNDERSTAND WHAT THINGS LOOK LIKE.
THAT'S ONE I THE OTHER FINANCIAL IMPLICATIONS THAT WE HAVE TO BE, THAT WE HAVE TO BE CAREFUL WITH IS IF THE BOND FAILS EITHER YEAR, IT DOESN'T MATTER.
IF IT FAILS, THEN EVERYTHING ON THAT LIST HAS TO BE CASH FUNDED.
EVERYTHING ON THAT LIST HAS TO BE CASH FUNDED OR IGNORED FOR FIVE YEARS.
AND THE ONLY ONE THAT'S ON THAT LIST THAT YOU CAN'T IGNORE IS GARTH BECAUSE WE'VE ALREADY MADE A FINANCIAL COMMITMENT TO TECH STOCK THAT THAT HAS TO, THAT HA THAT HAS TO BE PAID.
UM, AND BECAUSE THEY'VE ALREADY STARTED THAT, AND SO WHATEVER GARTH'S MATCHES ON THERE, WE HAVE TO HAVE THE CASH IN HAND TO DO THAT.
AND SO THAT'S A FINANCIAL IMPLICATION REGARDLESS OF WHICH YEAR IT IS THAT WE HAVE TO BE PREPARED TO PULL OUT OF THE RESERVES TO PAY THAT, SHOULD THE BOND NOT PASS, UM, WHAT IS IT? 35 MILLION? 35 MILLION.
SO AT A MINIMUM YOU NEED $35 MILLION TO COVER THE GARTH PROJECT.
UM, AND JASON, IF I MAY, THERE'S ALSO A POSSIBILITY OF RESTRICTED FUNDS NOW FROM YES MA'AM.
SO THAT COULD ALSO IMPACT US GOING AFTER ANY ADDITIONAL MUDDIES THAT'S CORRECT FOR MATCHING FUNDS.
SO THERE ARE ARE NUMEROUS BILLS IN PLAY RIGHT NOW.
A LOT OF, WE GET STREET FUNDING FROM HARRIS COUNTY PRECINCT TOO.
IF HARRIS COUNTY PRECINCT, IF THAT BILL PASSES, WE NO LONGER GET THAT TOLL MONEY THAT'S GOING TO HARRIS COUNTY.
THAT GOES STRICTLY TO IT GOES DIRECTLY TO, UH, THE CITY OF HOUSTON AND REDUCES THE FLOW OF CASH THAT WE HAVE COMING INTO US AS SOMETHING ELSE IN PLAY THAT WE NEED TO BE AWARE OF, THAT WE WILL HAVE TO CASH FUND FOR SOME OF THESE, THESE BOND PROJECTS.
ISSUING COSTS ARE SOMETHING TO CONSIDER FOR 2025.
WE CURRENTLY HAVE A GOOD RESERVE SHOULD THINGS GO SOUR.
UM, IF WE, UH, DEPENDING ON HOW WE LOOK AT THE, UH, THE BUDGET FOR FY 26, IF, IF THE RESERVE WERE TO GO DOWN, IF THE RESERVE WERE TO GO DOWN, OUR ISSUING COSTS FROM THIS YEAR WOULD BE DIFFERENT FOR THE FOLLOWING YEAR BECAUSE WE WOULD MOST LIKELY HAVE A CREDIT RATING DECREASE.
AND THE CREDIT RATING DECREASE INCREASES YOUR INTEREST RATE THAT YOU HAVE TO BE AWARE OF.
UM, IN, IN ADDITION TO THE INTEREST RATE, THERE ARE ISSUING COSTS THAT, THAT ARE PAID TO, UM, THE BOND COUNCIL.
AND IF YOU HAVE A LOWER CREDIT RATING, YOU AUTOMATICALLY HAVE A HIRING ISSUING COST THAT GOES WITH THAT FINANCIAL ISSUANCE AS WELL.
UM, DOES CCPD AND FIRE CONTROL, I KNOW HOW Y'ALL FEEL, I THINK WE'VE ALREADY TALKED ABOUT THAT.
I'M NOT GONNA TALK ABOUT THAT.
BUT YOU DO NEED TO CONSIDER IF SOMETHING WERE TO FAIL ON THAT SIDE, YOU NEED TO HAVE THE 5 MILLION READY, UH, FOR, FOR THIS TO GO INTO THE GENERAL FUND OR NOT HAVE THOSE EXPENDITURES.
WHAT DO WE USE THOSE FUNDS FOR? UH, THEY ARE SPECIFIC PROGRAMS THAT ARE LAID OUT INSIDE THOSE MAYOR, I DON'T KNOW EXACTLY WHAT ALL THOSE ARE OFF THE TOP OF MY HEAD RIGHT NOW.
UM, IF THE CHIEFS WANT TO TALK ABOUT 'EM, WE CAN, THEY CAN TRY TO ANSWER 'EM OFF THE TOP OF THEIR HEADS.
I DON'T WANNA PUT YOU ON THE SPOT THOUGH.
YOU JUST ASKING ABOUT FIRE CONTROL.
IF YOU WANNA TALK ABOUT CCPD, YOU CAN TELL ALL ABOUT CCPD.
SO IT'S FOR FIRE ENGINES AND AMBULANCES PRIMARILY.
UH, WE DO OCCASIONALLY WORK ON HIGH WATER VEHICLES AND OTHER THINGS, AND THEN THERE'S SOME OTHER CAPITAL ITEMS THAT WE PURCHASE, BUT PRIMARILY IT'S A REPLACEMENT CYCLE SO THAT WE DON'T HAVE TO GO TO COUNCIL, THE GENERAL FUND FOR A MILLION DOLLAR HITS EACH YEAR FOR THOSE PARTIES.
AND HOW OFTEN ARE WE NEEDING TO REPLACE THOSE VEHICLES? WE BUY AN AMBULANCE PRETTY MUCH EVERY YEAR.
AND THEN, UH, A FIRE TRUCK IS PROBABLY EVERY TWO YEARS TO THREE YEARS AND IT JUST DEPENDS.
AND THEY'RE THREE YEAR WAIT ON THE AMBULANCE.
THE FIRE TRUCKS ARE FIRE IN THE AMBULANCE.
IT'S TAKEN THAT LONG WHEN YOU ORDER ONE TO GET ONE.
AND THE PD, WELL, ONE OTHER QUESTION FOR THEM.
HOW MANY FIRE TRUCKS, WELL, HOW MANY VEHICLES ARE WE NEEDING RIGHT NOW TODAY? I'M SORRY, SAY AGAIN? HOW MANY VEHICLES ARE WE NEEDING RIGHT NOW TODAY? SO OUR CYCLE'S BEEN WORKING
[00:40:01]
PRETTY GOOD.UM, WE, WE'VE BEEN ABLE TO, UH, OVER THE LAST FEW YEARS, UM, GET IT TO WHERE WE GOT OUT RECURRING COSTS WITHIN FIRE CONTROLS TO JUST BUY CAPITAL, THINGS LIKE THE, THE, UM, THE TRUCKS.
AND SO OUR CYCLE'S GOING PRETTY GOOD.
UM, WE DO NEED FUTURE TRUCKS IN AND OUT A LITTLE BIT TO MAKE SURE THAT THE FUNDS ARE GONNA BE THERE, BUT, UH, IN THE LAST I THINK PROBABLY FIVE YEARS, WE'VE PURCHASED AN AMBULANCE EVERY SINGLE YEAR.
AND WHEN WE BUY ONE, THE OLDEST ONE, THE OLDEST, THAT ONE GOES IN THE RESERVES AND THE OLDEST RESERVE AMBULANCE AND GETS AUCTIONED OFF.
BUT RIGHT NOW WE'RE DOING PRETTY GOOD, BUT JUST USING THAT, THAT'S THE REPLACEMENT PLAN.
SO FOR C CCP D WE'RE ALLOWED CAPITAL AND ALSO FUND, UH, CRIME PREVENTION AND REDUCTION PROGRAMS. CAPITAL ITEMS THAT WE PURCHASE ARE MARKED VEHICLES AS WELL AS SOME OF OUR UNMARKED VEHICLES.
ALL OF THE POLICE DEPARTMENT'S MARKED VEHICLES ARE COMING OUT OF THE CCPD AT THIS TIME.
UH, FOR A WHILE WE WERE ABLE TO ORDER ABOUT 20 TO 22 VEHICLES AT A TIME OF EVERY SERIES, WHICH MEANT THAT EVERY FIVE, FIVE YEARS OUR FLEET WAS ON TRACK TO BE REPLACED.
WE'RE NOT ABLE TO DO THAT ANYMORE BECAUSE WE'VE HAD SHIFT COSTS ACPD, WHICH MEANS NOW WE'RE DOWN TO LAST TIME IT WAS 16 VEHICLES THAT WE'VE ORDERED, AND NOW WE'RE LOOKING AT PROBABLY ABOUT 12 MARKED VEHICLES IN ADDITION TO REPLACING A VERY FLEET OF UNMARK VEHICLES.
UH, SOME OF THOSE HAD NOT BEEN, UH, BEEN REPLACED WELL OVER THE, UH, THE LIFESPAN OF THOSE VEHICLES.
AND OUR, UH, UH, TECHNOLOGIES THAT ARE BEING FUNDED OUT OF THERE INCLUDE THINGS LIKE, UH, FUNDING OUR DIGITAL FORENSICS.
UH, DIGITAL FORENSICS IS THE NEW DNA FOR PROSECUTION.
AS SOON AS WE GET A CASE THAT WE TAKE TO THE DA'S OFFICE AND WE ARE PRESENTING A MURDER CASE OR AGGRAVATED ASSAULT, THE VERY FIRST THING THAT THEY'RE ASKING FOR IS NOT, DO YOU HAVE DNA EVIDENCE? DO YOU HAVE DIGITAL FORENSIC EVIDENCE? DO YOU HAVE CELL PHONE,
SO WE HAVE OUR OWN STANDALONE, UH, DFU DIGITAL FORENSIC UNIT AND, UH, WE HAVE VERY NICE SPARE DAY ROOM, WHICH PROTECTS ALL THE TECHNOLOGIES IN IT SO THAT IT CAN BE IMPACTED FROM OUTSIDE, UH, TRANSMISSIONS.
UM, AND IT'S ALSO ENHANCED INFORMATION SYSTEMS AXON, WHICH IS OUR BODY-WORN CAMERAS, OUR CAMERAS INSIDE THE VEHICLES, WHICH ARE ALL PART OF, UH, UH, OUR RACIAL PROFILING LAWS THAT WE'RE REQUIRED TO HAVE.
NOW IT'S ALL FUNDED THROUGH THERE AND THERE'S AN ENHANCED INFORMATION SHARING SYSTEM INVOLVED WITH ALL OF THESE ELEMENTS, INCLUDING AXON.
AND AXON HAS EVIDENCE.COM, WHICH HAS UNLIMITED CLOUD-BASED STORAGE THAT WE CAN PUT ALL OF OUR DIGITAL EVIDENCE, ALL OF OUR PRINTED EVIDENCE INSIDE THAT, UH, CLOUD.
AND IT ALSO ALLOWS US TO SHARE IT VIA A LINK WITH OTHER AGENCIES THAT WERE WORKING IN, UH, CONGRESS ON WITH, UH, JOINT INVESTIGATIONS.
BUT WE CAN ALSO SEND IT TO DISTRICT ATTORNEY'S OFFICE DEPENDING ON, UH, HARRIS COUNTY OR, UH, CHAMBERS COUNTY, AND THEY CAN BEGIN TO REVIEW THE EVIDENCE IMMEDIATELY.
UH, IT ALSO INCLUDES, UH, OUR, OUR A LPR.
UH, THE, THE FLOCK SYSTEM IS ALSO IN THERE.
UH, TASERS ARE PART OF THE AXON PROGRAM TOO.
SO ALL THOSE THINGS ARE IN THERE, BUT THERE'S MULTIPLE SOFTWARE SYSTEMS FOR OUR DIGITAL FORENSICS UNIT, AND THAT'S IMPORTANT TO US AND THE CITIZENS, NOT JUST BECAUSE WE'RE ABLE TO DO IT ON OUR OWN, BUT THAT'S WHAT HELPS US GET PROSECUTIONS AND KEEP BAD GUYS IN JAIL.
CAN I ANSWER YOUR QUESTION ON FINANCIAL IMPLICATIONS OR DO I NEED TO, IS THERE SOMETHING ELSE I MISSED? YOU ANSWERED MY QUESTION.
UM, THE, THE NEXT THING, ARE THERE OTHER QUESTIONS ON FINANCES? ARE THERE SPECIFIC RISK THAT GIVE YOU PAUSE OR CONFIDENCE, UM, WITH EITHER 2025 OR 2026? I KNOW WE'VE TALKED ABOUT SOME OF THEM ALREADY.
I, I THINK FOR ME IT'S, UM, THE FACT THAT WE'VE, WE'VE ALREADY LOST A MONTH AND A HALF PRETTY MUCH IN OUR BOND COMMITTEE TO REALLY GET INTO WHAT THE BOND ITEMS ARE OR THE PROJECTED PRIORITY PROJECTS.
AND SO I DON'T KNOW IF THAT MONTH AND A HALF WILL MAKE A DIFFERENCE OR WHEN WE DECIDE TO, TO MAKE A DECISION, BUT THAT'S, IF WE REALLY WANT THAT TARGETED OUTREACH AND UNDERSTANDING FROM OUR, OUR BOND COMMITTEE, A MONTH IS A LONG TIME TO GET ACCLIMATED TO THESE PROJECTS.
AND I DID HAND OUT THE TIMELINE, UM, I MISSPOKE ON THAT.
THE PUBLIC OUTREACH GOES ALL THE WAY UNTIL NOVEMBER.
[00:45:01]
THE CALL DATE IS STILL AUGUST, BUT THE OUTREACH FOR THE BOND COMMITTEE IS ACTIVE UNTIL NOVEMBER.IT DOES NOT NEGATE YOUR THOUGHT.
I'M SORRY, I'M JUST TRYING TO YEAH.
IDENTIFY WHAT A, WHAT I HANDED OUT.
I WOULD SAY THE ITEM THAT GIVES ME THE MOST PAUSE IS WHAT YOU'VE ALREADY WRITTEN ON THE BOARD THERE.
I I, I DON'T WANT TO BE IN THE SAME CYCLE AS THE SCHOOL DISTRICT.
ARE WE, HAS THE SCHOOL DISTRICT MADE A DECISION AND VOTED THAT THEY WOULD NOT, OR, OR THEY JUST SUGGESTED THAT THEY'RE THINKING ABOUT NOT GOING OUT FOR A BOND? UM, I DON'T WANT TO SPEAK FOR THE SCHOOL DISTRICT MAYOR.
I WILL TELL YOU THE CONVERSATIONS THAT I'VE HAD WITH THE SCHOOL DISTRICT ADMINISTRATION IS THAT THEY DELIBERATELY DELAYED THEIRS KNOWING THAT WE WERE HAVING OUR ELECTION IN 2025.
THEY, THE FINAL DECISION HASN'T BEEN MADE.
I, AGAIN, I DON'T WANNA SPEAK FOR THEM.
BUT IT'S MY UNDERSTANDING THAT THEY HAVE PUSHED THEIR BOND UNTIL 2026 AT THIS POINT.
LIKE THEY, IT'S, IT'S HALTED UNTIL 2026.
SO THAT'S THEIR FINAL DECISION.
I, AGAIN, WE DON'T KNOW, I DON'T WANNA SPEAK FOR THEM, BUT THAT'S MY UNDERSTANDING.
WHAT ABOUT LEE COLLEGE? DID THEY PLAN ON GOING OUT FOR ONE? DO WE KNOW? I DO NOT KNOW.
DO YOU HAVE THAT WRITTEN ON THE BOARD? WAS THAT ALREADY THERE? DID G-C-C-I-C-I WROTE THAT YES.
COMES BECAUSE I JUST, I KNEW THIS WAS A RISK FACTOR, SO I JUST WANTED
OH NO, YOU WROTE IT AND THEN I, I JUST WAS, I WAS WONDERING IF YOU WERE GONNA SAY SOMETHING ELSE ABOUT IT.
NO, I JUST KNOW IT'S A RISK FACTOR.
SO IT MAY BE TO OUR ADVANTAGE TO MAYBE REACH OUT TO BOTH OF THOSE ENTITIES AND ASK THEM THE QUESTION, IF WE DON'T GO OUT FOR HOURS, DO THEY PLAN ON GOING OUT FOR THEIRS? AND IF WE DO, IS THAT GOING? IS OUR DECISION GOING TO DETERMINE WHAT THEIR DECISION IS GOING TO BE? UM, FROM MY POINT OF VIEW, I WOULD SAY THAT WE NEED TO MAKE A DECISION TODAY IS APRIL 14TH.
AND I WOULD, IF WE SAY YES, I WOULD PROBABLY GET THE BOND COMMITTEE MEETING NEXT WEEK TO START MAKING DECISIONS, UM, IN HOPES THAT THEY CAN START MAKING A RECOMMENDATION TO THE COUNCIL IN MAY.
AND THEN THEY CAN START DOING THEIR PUBLIC OUTREACH IN MAY.
IF WE WAIT TO GO TALK TO PEOPLE THE FIRST TIME THAT WE'D BE ABLE TO MAKE A DECISION, UH, WOULD PROBABLY BE JUNE.
AND WE'RE ALREADY BEHIND A MONTH.
WE, BECAUSE ON HERE IT SAYS MARCH, I WOULD SAY WE'RE BEHIND PROBABLY TWO WEEKS, TWO AND A HALF, THREE WEEKS.
I WOULDN'T SAY WE'RE TOO FAR BEHIND.
WE DIDN'T DO OUR SELECTION OF THE BOND COMMITTEE UNTIL MARCH, WHICH WAS RIGHT ON WHERE WE THOUGHT WE WOULD BE AT THE MIDDLE PART OF MARCH, WHICH I BELIEVE IS WHERE WE THOUGHT WE WOULD BE.
I'M GOING FROM MEMORY, SO I'M NOT, IF I'M SAYING IT WRONG, IT'S NOT INTENTIONAL.
YEAH, I I THINK THAT, UM, G-C-C-I-S-D, YOU ASKED WHAT GAVE US PAUSE.
SO FOR ME, I THINK THAT THEY ALREADY ARE AN ISSUE FOR US IN THIS COMMUNITY.
AND WHAT I MEAN BY THAT IS I, I ACTUALLY THINK THAT THEIR BOND, AND I ALREADY SAID THIS WHEN WE WERE AT OUR RETREAT, I THINK THAT THEIR BOND FAILING PREVIOUSLY IS ALREADY IMPACTING US.
UM, I AGREE WITH NOT RUSHING, BUT I ALSO AGREE WITH NOT BEING ON THE SAME BOND.
I, BUT I PERSONALLY DON'T THINK ASKING ANYONE TO APPROVE A BOND RIGHT NOW IS, IS GOING TO BE, I DON'T CARE HOW MUCH WE SLIM IT DOWN.
I I AM SUPPORTIVE OF THE BOND.
I'M SUPPORTIVE OF GOING THE GO ROUTE VERSUS THE CO ROUTE.
I DON'T, I DON'T WANT IT TO COME OUT ANY OTHER WAY.
BUT I ALSO DO THINK IT'S IMPORTANT THAT I SAY OUT LOUD THAT I HOPE I'M WRONG, BUT I DO NOT THINK A BOND IS GONNA PASS THIS YEAR OR NEXT YEAR.
I THINK THAT, UM, FOR A LOT OF VOTERS EVEN DOING THEIR HOMEWORK, WE'RE STILL ASKING FOR MONEY.
AND I, I KNOW THAT WE ALL HAVE LOTS OF RESEARCH AND, AND WE UNDERSTAND THAT THE THINGS ARE GONNA, THE STREETS AND ALL THIS ARE GONNA HAVE TO BE PAID FOR ONE WAY OR THE OTHER.
BUT, UM, PART OF THIS IS ASKING PEOPLE TO APPROVE, ASKING TO USE MONEY AND GO INTO DEBT ONE WAY OR THE OTHER.
SO, UM, I JUST, I, THE PAUSE IS, I THINK THAT IT'S HARD RIGHT NOW TO ASK ANY CITIZEN TO APPROVE THE USE OF MONEY WHETHER WE HAVE TO OR NEED TO OR, SO I, I JUST THINK IT'S GONNA BE CHALLENGING.
UM, I WAS TRYING TO WORK IT OUT WHILE I WAS TALK, WHILE I WAS TALKING OUT LOUD TO Y'ALL.
LIKE I, I KIND OF THINK THIS YEAR IS BETTER JUST TO GO AHEAD AND GET IT GOING.
UM, BUT THEN MORE TIME, BUT THEN, LIKE, IF, IF FOR ME, THE, IF GOOSE CREEK WAS NOT ON NEXT YEAR'S BOND, THE ANSWER WOULD BE VERY, VERY EASY.
IT WOULD BE JUST WAIT TILL NEXT YEAR.
UM, SO IF WE REALLY THINK THAT GOOSE CREEK NEXT YEAR IS OUR ONE HANGUP, I WOULD ARGUE THAT I THINK GOOSE CREEK'S FAILED BOND IS ALREADY A HANGUP THIS YEAR.
[00:50:02]
I AGREE WITH COUNCILMAN POWELL THAT I REALLY DON'T WANNA BE ON THE SAME BALLOT AS THE, AS ANOTHER TAXING ENTITY BOND ELECTION.IT'S, IT'S DIFFICULT ENOUGH FOR ME TO UNDERSTAND THAT THE ISSUE OF THE TAX DEBT RATIO VERSUS M AND O AND I'VE GOT A DEGREE IN THAT STUFF.
SO IT'S ALMOST, YEAH, IT GETS REALLY COMPLICATED VERY QUICKLY.
SO IF WE DELAY, WE'RE GONNA HAVE MASSIVE RESERVES THAT PEOPLE ARE GONNA GO, WELL, WHY AREN'T YOU KEEPING MY TAX RATES? WE HAVE MASSIVE RESERVES.
IT'S KIND OF, 'CAUSE WE STILL HAVE TO PAY FOR THINGS THAT AREN'T IN THE DEBT RATIO.
IT, IT REALLY STARTS TO LOOK BAD.
AND, AND I'LL JUST GO BACK TO MY PUSH AND I'LL KEEP PUSHING.
WE JUST NEED TO KEEP IT AS TIGHT AS WE CAN AND GO FORWARD WITH AN JUST AN ABSOLUTE NEED BASIS ONLY.
AND I THINK OUR CITIZENS WILL SEE THAT, LIKE LAURA WAS SAYING, AND I DON'T THINK IT'LL BE, WELL, IT'S NOT MY STREET.
IT'S KIND OF LIKE, WELL IT'S, IT'S A STREET THAT'S USED THROUGHOUT.
SO, UM, THE MOBILITY ISSUES OTHER THAN TRASH COLLECTIONS, THAT'S WHAT I HEAR ABOUT THE MOST IS STREETS NEED TO BE REPAIRED MM-HMM
BUT HERE'S YOUR OPPORTUNITY TO APPROVE 50, $75 MILLION IN STREET REPAIRS SO WE CAN KEEP MOVING FORWARD.
AGAIN, WE JUST HAVE TO KEEP IT TIGHT IF WE GET PUT ANY FLUFF IN THERE OR DRAGGING IT OUT, I THINK IT'S JUST, YOU KNOW, A CALCULATION FOR DISASTER.
UM, I DO NOT WANNA BE ON THE STATE DISTRICT EITHER.
UM, UH, I THINK WE'VE COME THIS FAR, WE'VE GOTTEN, UM, INSIGHT FROM THOSE THAT ARE HELPING US PUT TOGETHER, UH, THIS BOND PACKAGE.
AND SO IT, WE ARE LAYING IT IN THE HANDS OF THE BOND COMMITTEE.
UM, THEY WILL BE THE ONES ENTRUSTED TO GO THROUGH THE PROJECTS, DO THE OUTREACH, AND HOPE THAT IT DOESN'T TURN INTO THIS, I'M GONNA CAMPAIGN AGAINST THE BOND TYPE OF THING BECAUSE WE CHOSE THEM FOR A REASON.
AND THAT'S TO BE MINDFUL OF THE PROJECTS THAT, YOU KNOW, WE'RE PRIORITIZING IRON OUT WHICH ONES THEY FEEL NEED TO GO THROUGH OR NOT GO THROUGH.
AND IT WILL BE UP TO THEM, IT, IT'S GONNA BE IN THEIR HEADS.
UM, AND SO THAT'S, THAT'S THEIR PURPOSE.
AND SO, UM, AM I COMFORTABLE DOING IT THIS YEAR? NO, BUT ULTIMATELY IT'S, IT'S GONNA BE UP TO THEM TO HELP PUSH IT THROUGH.
SO WHY WOULD YOU NOT BE COMFORTABLE THIS YEAR? I, I JUST STILL FEEL A LITTLE, YOU KNOW, IT'S A LITTLE RUSHED.
UM, BUT UH, AT THE SAME TIME, I DON'T WANT IT NEXT YEAR AND I DON'T WANT, I DON'T WANT TO PROLONG IT.
UM, AND SO WE, THE ONLY RULE ANSWER WOULD BE TO DO IT THIS YEAR.
DO YOU, AND WHAT ASPECT DO YOU FEEL IS BEING RUSHED? WELL, I, I FEEL THAT BECAUSE OF THE FEEDBACK AND, AND WHAT'S BEEN HAPPENING, UM, WAS A COMMENT, UM, THERE, THERE'S A SENSE OF THE CITY DOESN'T NEED TO GO OUT FOR DEBT.
UM, BUT, BUT AT THE SAME TIME, WE ARE BEING LOOKED AT EVERY DOLLAR WE SPEND ANYWAY.
SO, UM, I, I JUST THINK THAT WE JUST NEED TO FORWARD AND WITH SARAH, I HOPE TO BE VERY PLEASANTLY SURPRISED, UM, ON THE OUTCOME OF THIS GEO.
AND THAT'S ALL WE REALLY CAN DO IS PUT IT IN THEIR HANDS.
UM, GIVE THEM AS MUCH INFORMATION AS POSSIBLE, UM, AS THEY GO OUT AND NAVIGATE THROUGHOUT THE COMMUNITY TO EDUCATE THE DIFFERENT, UM, COMMUNITY STAKEHOLDERS AND, AND THEN LAY OUT OUR CARDS AND LET THEM PLAY OUT.
THE OTHER RISK FACTOR THAT, THAT I WOULD BRING TO YOUR ATTENTION IS THE FACT THAT THE GARTH ROAD PROJECT IS ON THERE AND THE 35 MILLION THAT IS NECESSARY FOR THAT.
JUST AS A NOTE, THAT'S OUR RESERVE, THAT'S OUR RESERVE BALANCE AS ACCORDING TO THE BUDGET.
AND SO IF WE HAVE 35 MILLION THAT HAS TO BE ADDRESSED, UM, WE DON'T EVEN HAVE THE RESERVES TO PAY THAT 35 MILLION SHOULD THE BOND FAIL.
UM, LET'S SAY THE COMMITTEE, THE BOND COMMITTEE, UH, DECIDES DUE TO THE RISK AND THE FACT WE WOULDN'T HAVE THE RESERVE TO PAY THE C COMMITTED MM-HMM
UM, MONEY, THEY DECIDED TO REMOVE GARTH ROAD BECAUSE AS A COUNCIL
[00:55:01]
WE'RE COMMITTED TO GOING FOR A GEO NACIO.WHAT POSITION WOULD THAT PUT THE CITY IN? BECAUSE OBVIOUSLY THE CITIZENS AS WE KNOW, WANT GARTH ROAD FIXED.
SO THEN WHAT WOULD WE DO AS A CITY? FANTASTIC QUESTION.
YOU ARE CURRENTLY ARE NOT COMMITTED TO ONLY DOING A A GO INSTEAD OF A CO.
WE ARE PHILOSOPHICALLY ALIGNED THAT WE ARE DOING A GO INSTEAD OF A CO.
UM, I WOULD SAY THAT YOU HAVE COUNCIL MEMBERS UP HERE WHO PROBABLY STILL PUSH BACK IF WE WENT THROUGH A CO PROCESS VERSUS A GEO PROCESS.
AND SO YOU HAVE AN INTERNAL PIECE THAT YOU HAVE TO CONSIDER WITH THAT.
BUT LEGALLY YOU'RE NOT OBLIGATED TO JUST GO FOR A GEO RIGHT NOW.
STATE COULD CHANGE THAT NEXT MONTH AND THEN WE WOULD ONLY HAVE THE GEO PROCESS TO GO FORWARD.
SO JUST TO MAKE SURE THAT I UNDERSTAND YOU AND REPEAT IT OUT LOUD, UM, IF WE DECIDED TO KEEP THE GARDEN ROAD CONSTRUCTION, THE BOND COMMITTEE ON THERE AND IT FAILED, THERE IS STILL AN OPTION RIGHT NOW FOR COUNSEL IF IT WERE NEED BE FOR US TO APPROVE COS THAT'S CORRECT.
AND OR THE BOND NOT IF IT FAILED.
IF YOU TAKE IT ALL OR BOND COMMITTEE KNOWING THE RISK, KNOWING WE DON'T HAVE THE RESERVES REMOVES IT FROM THERE BECAUSE IT'S SUCH A IMPORTANT PROJECT.
WELL IT'S IS NOT NECESSARILY THAT THEY WILL REMOVE IT, THEY'RE GONNA CHOOSE WHAT'S GONNA BE ON THERE.
WE DON'T HAVE TIP FUNDING LINED UP FOR CD E.
SO THAT'S NOT A B IT IS NOT LIKELY THAT IT WILL GO IN 26 IN ANY EVENT.
WE'RE WORKING ON, WE ARE WORKING ON GARTH ROAD A AND B RIGHT NOW.
WE WOULDN'T EVEN, THAT'S SUPPOSED TO GO UP TO BID IN MAY AND AWARDED THIS SUMMER.
SO THAT'S, I TEND TO, SO THAT'S ALREADY IN A BUDGET.
I TEND TO ARCH, IS THAT WHAT YOU'RE SAYING? YES MA'AM.
THAT'S ALREADY, UH, 2025 BUDGET.
SO I THINK JAY MENTIONED THAT, UM, WE'RE GONNA PUT SOME EXTRA FUNDS ON THE FY 25 CO.
PART OF THAT IS TO TRY TO BRIDGE THE, THE FUNDING GAP WE HAVE FOR UH, GARTH A AND B, BUT THAT WOULD'VE TO BE FOR CIP MR. LESTER LAST I HEARD THAT WAS STILL ON THERE.
SO IT IS, BUT WE'RE TALKING ABOUT A FIVE YEAR, UM, PLAN.
SO WHAT I'M SAYING IS CD AND E IS NOT GONNA GO IN 26, BUT IT COULD GO WITHIN THE 28.
WE DON'T NEED THAT 22,000,026.
RIGHT, BUT YOU WOULD NEED IT WITHIN FIVE YEARS IF WITHIN FIVE YEARS.
BUT YOU COULDN'T BREW UE DEBT AGAIN FOR FIVE YEARS IF IT FELLS.
RIGHT? THAT'S THE DEPENDING ON LEGISLATION.
IT MOST LIKELY GONNA BE FIVE, RIGHT? YES.
SO, AND I WAS GOING TO BRING UP THAT THE TIP FUNDING'S NOT GUARANTEED RIGHT NOW FOR CD.
SO WHEN WOULD YOU SAY WE WOULD NEED THAT AT REALISTICALLY, AT REALISTICALLY 27 OR POSSIBLY 28, WHICH IS WHY WE'D STILL ISSUE IT RIGHT NOW.
SO I APPRECIATE YOU SHARING ALL THAT, BUT TO ME IT WAS KIND OF OBSOLETE TO THE CONVERSATION BECAUSE NO MATTER WHAT GUARD ROAD CONSTRUCTION, CCB E WOULD STILL BE IMPACTED CORRECTLY.
IF IT WAS ON OR OFF THE BOX BECAUSE IT WOULD BE WITHIN THREE YEARS.
BUT THERE, THERE WAS DISCUSSION ABOUT, UH, USING CASH, NEEDING CASH NEXT YEAR HE WAS CASH NEXT YEAR HE'S SAYING FOR 26, I JUST WANTED LET YOU KNOW CE IS NOT GONNA GO IN 26.
THE CONCEPT IS STILL THE, THE RISK CONCEPT IS STILL THERE.
THE CASH ON 26 IS PROBABLY DELAYED TO 27 OR 2018.
BUT EITHER, I DON'T THINK IN 27 OR 28 WE'D HAVE $35 MILLION JUST OUT.
HOW ABOUT A POSITIVE? IS THERE ANYTHING IN HERE THAT WE TALK ABOUT THAT'S CON THAT GIVES YOU CONFIDENCE IN THE, IN, IN THE BOND PROCESS? I, I WOULD SAY THE ONLY THING THAT GIVES ME CONFIDENCE IS EDUCATE EDUCATION, EDUCATION AND INFORMATION EDUCATE.
ALLOW THE CITIZENS TO BE EDUCATED AND ALLOW THEM ACCESS TO STYLE.
THE BOND COMMITTEE TO ASK QUESTIONS.
IF I WOULD BE IN SUPPORT, IF THEY WANT TO GO OUT AND TAKE A LOOK AT IT.
IF THEY WANT TO ASK WHAT GOES INTO THE PROCESS OF EVALUATING THE ROAD, GIVE THEM THEIR INFORMATION SO THAT THEY CAN GO BACK AND DISSEMINATE IT TO THE RESIDENTS WHO ARE GONNA BE VOTING AND TALK ABOUT TRANSPARENCY AND PRIORITY.
THEY'RE GONNA BE THE ONES PUTTING THIS LIST TOGETHER, EDUCATE THEM SO THAT THEY CAN MAKE THE BEST DECISION POSSIBLE.
THAT'S, THAT'S THE DETERMINANT, THAT'S THE INDEPENDENT VARIABLE ON OUR END THAT WE CAN CONTROL IS EDUCATING THEM.
[01:00:03]
SO ONE THING THAT GIVES ME CONFIDENCE IS, UH, I KNOW THE CONCERN ON NOT HAVING ENOUGH TIME.UM, I, I WOULD SAY BY AND LARGE, MOST BOND COMMITTEES ONLY OPERATE FOR A FEW MONTHS.
IT'S, IT'S VERY SHORT-LIVED PROCESS ANYWAYS, FOR ALMOST ALL BOND COMMITTEES 'CAUSE THEY MEET PRETTY REGULARLY.
AND BY AND LARGE, BY AND LARGE, I KNOW THE CIP COMMITTEE HAS AN UPDATED LIST, BUT IT'S FOUR PROJECTS, FOUR TO FIVE PROJECTS.
IF WE STICK WITH THE A HUNDRED MILLION, UH, PIECE THAT THEY WOULD BE EDUCATING THE COMMUNITY ON.
THAT'S, THAT BRINGS ME CONFIDENCE IS THAT WITH VERY FEW PROJECTS TO TALK ABOUT, IT'S A LITTLE BIT EASIER TO GO OUT AND REALLY TALK ABOUT THOSE SPECIFIC THINGS AND SHOW THAT THEY'RE, THEY'RE REALLY GEARED TOWARDS, UH, TOWARDS LARGE SCALE, UM, A MOBILITY.
IT'S NOT JUST HAY A STREET OVER IN THIS SECTION OF BAYTOWN.
THESE ARE LARGE SCALE PROJECTS BY THE WAY, THAT ARE, UH, BY AND LARGE THAT REALLY IMPACT A, A GOOD PORTION OF THE CITY.
AND SO I THINK THERE, THERE'S A, UM, HOW THE CIP COMMITTEE HAS LOOKED AT IT AND PRIORITIZE STUFF.
I THINK I HAVE A LOT OF CONFIDENCE THAT THE BOND COMMITTEE WOULD BE ABLE TO EDUCATE THE COMMUNITY BASED ON WHAT THE CIP COMMITTEE DID.
I HAVE CONFIDENCE IN THE FACT THAT THE PEOPLE THAT WE APPOINTED, THERE'S BEEN TWO OR THREE THAT WEREN'T EVEN MY APPOINTEES THAT I KNOW ARE VERY EXCITED TO DIVE INTO THIS.
SO I HAVE CONFIDENCE THAT THEY'LL DO A GOOD JOB.
AND, UM, I HAVE CONFIDENCE THAT THIS IS WHAT OUR COMMUNITY AS A WHOLE WANTED.
I'M GONNA SKIP A QUESTION AND THEN GO TO, UM, WHAT MESSAGE DOES IT SEND TO OUR COMMUNITY IF WE DO MOVE FORWARD WITH THE 25 BOND? AND IF WE DON'T IN 25 LIFE? WELL, IF WE DO, WE'VE BEEN TALKING ABOUT IT SINCE JANUARY, SO THAT GIVES US, UM, CONSISTENCY IN THE MESSAGE.
IF WE DON'T, THEN SO THE MESSAGE THAT WE DON'T TRUST THEM OR THAT WE'RE TRYING TO CHANGE IT UP OR ELSE IN THERE, I THINK WE DON'T FOLLOW THROUGH WITH, WE GET STARTED AND I THINK IT'LL, UH,
AND I WOULD LIKE TO ADD THAT, UM, I FEEL THE COUNCIL'S BEEN PRETTY GOOD ABOUT, Y'ALL HAVE BEEN TALKING ABOUT THIS SINCE PROBABLY MARCH OF 24.
IF I REALLY THINK BACK, THE SPECIFIC PROJECTS HAVEN'T BEEN OUTLINED, BUT THERE WAS LIKE A COMMITMENT FROM THE COUNCIL TO THE LIKE, HEY, SINCE 20, EARLY 20, MID 24, THAT THIS IS THE WAY THAT WE WANT TO GO TO BUILD MORE TRUST AND TRANSPARENCY IN THE COMMUNITY.
SO I THINK IF WE LOOK BACK, WE CAN REALLY GO, UH, INTO A PART OF 24 WHERE Y'ALL HAVE BEEN VERY VOCAL ABOUT THIS IS WHAT WE'RE GONNA DO GOING FORWARD.
AND I DO WANNA SAY PUBLICLY THAT I WAS GOING FOR ONES AGAINST THE GO AND MY CO HERE CHANGED MY MIND MM-HMM
SO, UM, I THINK THIS WILL PUT IT IN THEIR HANDS AND, AND HOPEFULLY CONTINUE.
SO, AND THE ONLY THING, IT'S NOT THAT I DIDN'T WANT THE INPUT.
I THINK WHAT I WAS AFRAID WAS FOR IT TO BE TURNED DOWN AND THEN POTENTIALLY HALFWAY FIVE YEARS.
SO THAT WAS FINALLY PUSHED BACK AND HESITANT ABOUT.
ONE FINAL QUESTION, I'LL POP UP HERE FOR YOU.
SO BASED ON WHAT WE DISCUSSED, YOU BELIEVE THE CITY'S IN A SUCCESSFUL POSITION, UM, TO PURSUE THE BOND IN 2025? WE HAVE A PROCESS IN PLACE TO OUTLINED, AND AS I MENTIONED EARLIER, WE HAVE SOMEONE THAT IS WORKING WITH US SPECIFICALLY ON THE BOND AND THE PROCESS.
AND SO I FEEL THAT WE SHOULD BE IN GOOD SHAPE TO MOVE FORWARD.
UM, I SUCCESSFULLY, TO ME
SO, UM, I'M JUST GONNA TAKE FACE VALUE THAT WE HAVE ALL THE PARTS IN PLACE TO YEAH, I THINK WE'RE IN A PLACE TO SUCCESSFULLY GO THROUGH THE PROCESS AND YOU'LL HAVE TO SEE, OBVIOUSLY THE CITIZENS WILL BE ABLE TO VOTE, UM, WHETHER OR NOT IT PASSES OR FAILS.
[01:05:01]
I BELIEVE WE'LL BE SUCCESSFUL IN THE PROCESS EITHER WAY.WELL, UM, I'M ASKING FOR DIRECTION.
SO MY LAST QUESTION IS, DO SUPPORT DIRECTING STAFF TO MOVE AHEAD WITH THE JAIL BOND PROCESS NOVEMBER, 2025? YOU YES.
THERE IS DINNER IN THE OTHER ROOM IF YOU WANNA GRAB SOMETHING TO EAT OR, SORRY, I KNOW THAT'S YOUR THING.
I'M JUST, THAT WAS THE SCHEDULED THING.
THAT WAS A SCHEDULED, OH, ACTUALLY, I'M SORRY.
I, I'M SORRY MAYOR JUMPED AHEAD OF MYSELF.
I CAN WAIT UNTIL
IT'S OUR COMMITMENT TO YOU THAT WE HAVE A PLAN.
SO BASED ON THIS ACTION, WE HAVE A TEAM IN PLACE THAT'S GONNA CONTINUE TO MOVE FORWARD STARTING TOMORROW TO, UH, TO MOVE THIS FORWARD.
UH, THE TEAM INCLUDES OUR CONSULTANTS IN HALF.
WE WILL NEED TO GO BACK TO HALF AND TELL 'EM TO CONTINUE THEIR WORK.
AND SO FRANK AND BRENT WILL HAVE THE DIRECTION THEN TO GO BACK TO HALF AND SAY, HELP US.
WE, WE WANT TO GET THIS ACROSS THE FINISH LINE.
AND SO THEY WILL CONTINUE TO HELP US.
SO THAT'LL BE PART OF THE DIRECTION.
OF COURSE, THE BOND COMMITTEE WORK WILL CONTINUE AND THE BOND COMMITTEE WORK, IN ADDITION TO JUST STAFF WORK IS SIMPLY TO EDUCATE.
AND WE'VE TALKED ABOUT THIS AT THE RETREAT.
AND WE WILL CONTINUE TO BE THE STRUM THE CITY AND ALL OF ALL OF OUR ARMS AND LEGS AND MOUTHPIECES AND, AND FEELERS OUT THERE WILL BE ABLE TO EDUCATE ONLY.
AND THE PUBLIC AFFAIRS TEAM WILL BE ABLE TO HELP YOU CREATE THE MATERIAL FOR THAT EDUCATION PIECE.
WE WILL BE ABLE TO EDUCATE THE PUBLIC.
YOU WILL BE ABLE TO MAKE PRESENTATIONS.
THE BOND COMMITTEE WILL BE ABLE TO MAKE PRESENTATIONS WITH POWERPOINT TEMPLATES THAT WE GIVE YOU AND GRAPHICS THAT WE GIVE YOU.
WE ACTUALLY ALREADY HAVE THE WEBPAGES READY TO GO.
ALL WE HAVE TO DO IS GET THOSE PROJECTS ON THERE AND WE WILL HAVE WEBPAGE FOR THAT TRANSPARENCY PIECE.
SO WE WILL HAVE ALL THE PIECES FOR YOU AND THE BOND COMMITTEE.
AND THEN IT'S A MATTER OF EDUCATING AND, AND MAKING SURE THAT THE PUBLIC KNOWS WHERE THEY CAN GO TO GET THEIR ANSWERS.
AND, UH, ONE IDEA IS IMPLEMENTING A SPEAKER'S BUREAU THAT IS A COLLECTION OF PEOPLE THAT WE CAN CALL UPON OR THE COMMUNITY CAN CALL UPON TO ANSWER QUESTIONS AND MAKE PRESENTATIONS.
WE KNOW THAT NOT EVERYBODY IS CAPABLE OF MAKING THOSE PRESENTATIONS.
UH, WE KNOW THERE ARE PEOPLE WHO SHOULD BE MAKING THOSE PRESENTATIONS.
SO IF A, IF A SERVICE ORGANIZATION SAYS, HEY, I NEED SOMEONE TO COME SPEAK TO OUR ROTARY ABOUT THIS, THIS BOND, WE SHOULD HAVE A COLLECTION OF PEOPLE THAT WOULD BE CALLED UPON TO DO THAT.
AND SO WE'LL BE LOOKING TO YOU AND THE BOND COMMITTEE TO FIND OUT WHO THOSE PEOPLE ARE.
SO WE, WE'VE GOT THE PLAN, IT'S READY TO GO.
AND IT'S JUST A MATTER OF REITERATING THE FACT THAT WE WILL BE ABLE TO DO AS MUCH EDUCATION AS POSSIBLE.
AND THEN IT'S ON TO OUR ADVOCATES IN THE COMMUNITY WHO CAN REALLY HELP US REPEAT THAT STORY AND ADVOCATE FOR US IN THE FUTURE.
AND JUST MAYOR AND COUNCIL, JUST SO Y'ALL KNOW, WE ALSO HAD THE NEXT SLIDE IF NO, JUST SO YOU KNOW, WE DIDN'T KNOW WHICH WAY THIS WAS GONNA GO.
UM, SO
IF IT WAS YES OR IF IT WAS NO.
SO AS I TALKED ABOUT BEFORE, MAYOR, WE HAVE THIS BREAK BUILT IN.
WE WILL GO AHEAD AND RECESS FOR WHAT, 20 MINUTES? 20 MINUTES.
A NUMBER TWO UPDATE ON CITY PROJECTS.
IS THAT NOT WHAT WE'RE DOING? NO, WE, ABOUT WHAT ARE YOU TALKING ABOUT? I'M OFF THE BUDGET SECTION.
I'M SAVING MONEY RIGHT IN LEFT
SO WE ARE GONNA KICK OFF, UM, UH, THE CONVERSATION ABOUT THE BUDGET, BUT BEFORE WE JUMP INTO KIND OF WHERE WE'RE GOING IN THIS NEXT YEAR, WE WANNA MAKE SURE WE KIND OF STOP AND TAKE A LOOK BACK AT WHAT WE'VE DONE OVER THE PAST YEAR OR SO.
SO, UM, AS A REMINDER, UH, YEAH.
SO AS A REMINDER, GOING INTO THE FY 25 BUDGET, WHICH IS OUR CURRENT BUDGET STARTED BACK IN OCTOBER, WE WENT THROUGH AND WE HIGHLIGHTED SOME SERVICE DELIVERY CHANGES THAT WE MADE.
AND SO I WANNA RUN BACK THROUGH THOSE JUST TO REFRESH YOUR MEMORY, BECAUSE SOME OF THOSE DIDN'T NECESSARILY HAVE A HUGE PUBLIC IMPACT.
SOME OF 'EM DID, SOME OF 'EM DIDN'T.
BUT THE THING I WANT YOU TO KEEP IN MIND IS THERE'S SO MUCH OF THIS THAT IT HAS AN IMPACT INTERNALLY.
[01:10:01]
OUR ORGANIZATION.IT HAS AN IMPACT ON OUR STAFF.
WE HAVE A LOT OF VERY DEDICATED STAFF WHO LOVE WHAT THEY DO WANT TO DO, GREAT JOBS, WANT TO GIVE EVERYTHING WE POSSIBLY CAN TO THE COMMUNITY.
AND SO WHEN WE HAVE TO START SCALING BACK, THAT DOES AFFECT OUR EMPLOYEES.
UM, AND, AND WHAT THEY FEEL THEY CAN OFFER TO THE COMMUNITY.
SO, SO JUST RUNNING BACK THROUGH THE, SO FIRST OF ALL, WITHIN THE HEALTH DEPARTMENT, A COUPLE OF THE THINGS WE DID WAS, UH, WE DISCONTINUED THE COMMUNITY CLEANUP EVENTS RUN THROUGH THE HEALTH DEPARTMENT.
WE ELIMINATED THE FULL-TIME VETERINARIAN POSITION AND WE ELIMINATED ONE OF OUR CLEAN TEAM CREWS OVER AT THE LIBRARY.
WE REDUCED SOME OF OUR SERVICE HOURS AND WE DISCONTINUED OUR HOME BOUND SERVICE WITHIN PARKS AND REC.
WE RESTRUCTURED A LOT OF THOSE PROGRAMS AND EVENTS, NOTABLY, UM, OFFERING FEWER COMMUNITY EVENTS AND THEN REDUCING THOSE LARGE SCALE EVENTS FROM MULTI-DAY DOWN TO ONE DAY.
ADDITIONALLY, THERE WERE A NUMBER OF OTHER CHANGES TO PROGRAMMING AND, AND THAT SORT OF THING.
WITHIN PLANNING AND DEVELOPMENT SERVICES, WE REDUCED THE SUBSTANDARD DEMOLITION BUDGET, SO KIND OF REDUCING THE NUMBER OF THOSE DEMOLITIONS THAT WE COULD DO ON AN ANNUAL BASIS WITHIN PUBLIC AFFAIRS.
WE RESTRUCTURED THE NEIGHBORHOOD GRANT PROGRAM, KIND OF ALIGNING THE HOT AND THE BIG GRANT PROGRAMS, UM, IN COMING UP WITH WHAT WE NOW CALL THE CATALYST FUND.
WE ALSO REMOVED THE PUBLIC ART FROM THE GENERAL FUND AND THEN, UH, WE, UH, NO LONGER HAVE OUR FEDERAL LOBBYIST.
AND THEN WITHIN PUBLIC WORKS, UM, WE ELIMINATED ONE OF OUR SIDEWALK CREWS AND THEN WE ALSO MADE SOME CHANGES, UH, TO THE SANITATION BUDGET.
WE TRANSFERRED GENERAL FUNDS OVER INTO THE SANITATION FUND, MADE SOME CHANGES OVER WITH OUR SANITATION OPERATIONS, UM, TO REDUCE THAT FUNDING.
SO, SO THOSE ARE A COUPLE OF THINGS THAT WE'VE HAD DONE IMPLEMENTED THIS YEAR, OUR CURRENT BUDGET YEAR.
UH, LOOKING TO SEE THOSE SAVINGS AS WE MOVE ON THROUGH THE YEAR.
AND, UM, I'M GONNA HAND IT BACK OVER TO JAY AND HE'S GONNA TALK ABOUT SOME OF THE THINGS THAT WE'VE ALREADY PROPOSED FOR THE FY 26 BUDGET AND THEN, UH, LEAD US THROUGH THE REST OF THAT CONVERSATION.
SO, MAYOR AND COUNCIL, UM, AS CAROL MENTIONED, YOU KNOW, FY 25 WAS A, A PRETTY LARGE UNDERTAKING FOR THE ORGANIZATION TO REDUCE, UM, TO REDUCE ROUGHLY THE OPERATING COST BY $5 MILLION AT THE SAME TIME.
UM, IN 24, WE SAVED AN ADDITIONAL 3 MILLION TO ADDRESS SOME UNEXPECTED COSTS THAT POPPED UP IN, IN THE ACTUAL OPERATING YEAR OF 20, UH, FY 24.
AND REALLY ASKING THE STAFF TO FIND $8 MILLION THAT YEAR WAS, UH, A PRETTY LARGE, PRETTY LARGE UNDERTAKING.
AND, UM, WITH THE, WITH THE KNOWLEDGE THAT WE WERE ALSO JUST RESETTING THE BUDGET AND HOW WE OPERATE FOR, UH, FUTURE YEARS TO COME, THAT WAS KIND OF THE OVERALL KICKOFF OF WITH THAT.
AND SO, AS WE RECENTLY TALKED, UH, AT THE RETREAT, UM, WE HAD ROUGHLY, UH, PROPOSED A LITTLE OVER 3 MILLION IN BUDGET REDUCTIONS FOR FY 26.
AND WE ARE REITERATING WHAT WE HAVE FOUND, UM, AT THAT RETREAT THAT WE ARE STILL BRINGING, UH, OVER $3 MILLION IN BUDGET REDUCTIONS FOR FY 26.
UM, AND I'M GOING TO, I'M NOT GONNA GO THROUGH ALL OF THOSE THINGS.
WE TALKED ABOUT THEM AT THE RETREAT YOU WERE HANDED.
UM, YOU WERE HANDED THE, UH, FISCAL YEAR REVIEW AT THE LAST COUNCIL MEETING, UM, TO GO OVER THOSE.
SOME, SOME, THE HIGHLIGHT THAT, UH, AREN'T, THAT I WON'T GO INTO SUPER DEPTH ON WAS, UM, GETTING AHEAD AGAIN, LIKE WE DID WITH THE GEO BOND, WE WANTED TO GET AHEAD WITH SOME OF THE REDUCTIONS THAT WE KNEW WERE COMING FROM THE STATE.
UH, SO WE STOPPED ANY STATE FUNDED LOBBYING AS WELL.
WE DID FEDERAL LOBBYING THE YEAR BEFORE.
WE DID STATE LOBBYING, UH, FOR FY 26 IS ACTUALLY ALREADY ACTIVE, ACTIVE IN FY 25 AS WELL.
WE JUST PREEMPTIVELY WENT AHEAD AND, AND CUT THAT.
WE HAD A REDUCTION IN OUR ON-CALL, UH, CONTRACTING SERVICES FOR TRAFFIC ENGINEERING.
UH, SO WE WILL SEE LONGER WAIT TIMES WITH SOME OF OUR SIGNALING, UM, UH, ISSUES THAT ARE BEING REPORTED ALONG WITH ELIMINATING THE TRAFFIC CALMING PROGRAM THAT'S BEEN AT PLAY, UM, FOR THE CITY FOR A LITTLE BIT.
AND SO THERE ARE FOUR THINGS THOUGH THAT I REALLY WANT TO HIGHLIGHT.
AND THEY, THEY REALLY BREAK DOWN
[01:15:01]
INTO TWO SEPARATE CATEGORIES, OUR LONG-TERM IMAGE AND OUR OPERATIONS.AND WHEN I START WITH THE LONG-TERM IMAGE, THE, THE BIGGEST ONE THAT STANDS OUT FROM THE DIRECTION, UM, THAT WE HAVE DISCUSSED THAT COUNSEL ASKED TO FURTHER EXPLORE, UH, WAS THE T DOT MOWING CONTRACT.
AND TDOT, UM, HAS AN AGREEMENT WITH THE CITY WHERE THEY WILL REIMBURSE UP TO FOUR MOWS, ROUGHLY FOUR MOWING, UM, PIECES, FOUR AREAS ALONG THREE 30 DECKER AND 1 46.
AND, UH, THOSE FOUR TIMES THAT ARE, THAT ARE MOWED CAN BE REIMBURSED.
AND I, I DON'T REMEMBER EXACTLY, BUT I THINK IT'S, YOU CAN BE REIMBURSED UP TO $55,000.
HOWEVER, UH, THE, THE DIRECTION IN THE PAST WAS TO KEEP A, AN UPDATED MOWING CAPACITY, UH, ALONG THOSE SAME CORRIDORS AND RENEGOTIATING THOSE CONTRACTS WITH TXDOT, WE FORESEE A SAVINGS OF ROUGHLY $500,000.
AM I MISSTATING THAT AMOUNT? I BELIEVE IT WAS, RIGHT.
IT'S, IT'S A, IT'S A BUNCH OF DIFFERENT MOVING PARTS THOUGH, SO, OKAY.
UM, I THINK HOW IT'S WORKING OUT, IT'S ROUGHLY $500,000.
I DON'T WANNA MISQUOTE Y'ALL, BUT IT'S SUBSTANTIAL.
UM, UM, UH, BUT THERE ARE A TON OF MOVING PIECES THAT GO WITH IT.
AND SO I BELIEVE PART OF THAT MOWING PIECE WAS ALSO LITTER PICKUP.
IF, IF I'M REMEMBERING CORRECTLY AS WELL, CLIFF AND, UH, PARKS, PARKS REALLY HANDLED A LOT OF THIS WITH CONTRACTORS ON MOWING AND LITTER ADJUSTMENT.
AND WHEN IT COMES DOWN TO THE IMAGE, THE TALKING ABOUT THE IMAGE OF BAYTOWN, THERE WAS MONEY PUT FORWARD, UH, IN PAST BUDGETS TO INCREASE OUR LOOK OR TO BETTER THE LOOK OF BAYTOWN.
AND THAT HAS A LOT TO DO WITH CODE ENFORCEMENT, LITTER PICKUP, OR LITTER ABATEMENT.
UM, KEEPING THE GRASS MODE IN AREAS.
AND SO THIS IS SOMETHING THAT WE DO NEED TO UNDERSTAND WILL COME INTO PLAY BECAUSE THERE WILL BE A INCREASED CALLS ON TAKING CARE OF HIGH GRASS.
'CAUSE THE TEXT DOT STANDARD IS, THEY'RE GONNA CUT IT ONCE EVERY THREE MONTHS AND IT COULD BE UP TO THREE FEET TALL IN BETWEEN THE MOS.
AND, UM, SO THAT'LL BE ALMOST THE ENTIRETY OF THREE 30.
THE OTHER PIECE THAT GOES WITH THE IMAGE IS GONNA BE THE DEMOLITION PROJECT.
AND SO THE DEMOLITION PROGRAM THAT PLANNING AND DEVELOPMENT SERVICE OFFERS, OFFERS HAS BEEN REDUCED OVER THE PAST TWO YEARS FROM ROUGHLY 500,000.
AND THE PROPOSED AMOUNT FOR FY 26 IS 50,000.
AND SO THIS REDUCTION, I BELIEVE IS 150,000 THAT THIS ONE WILL BE REDUCED.
UM, AND SO WHAT THAT MEANS IS THAT THERE WILL BE, UM, A, A SLOWDOWN IN THE PROCESS OF RE OF ADDRESSING BLIGHT WITHIN THE CITY OF BAYTOWN.
IF I'M REMEMBERING THE DATA CORRECTLY, I, I BELIEVE MARTIN HAD TOLD ME AT ONE POINT THEY WERE DOING 40 TO 60 HOMES A YEAR AT THE HEIGHT OF, AM I IN THE BALLPARK HERE, 40 HOMES? NO, UP TO ABOUT 70.
SO IT WAS LOW, UM, 40 TO 70 HOMES A YEAR WITH THE $500,000, UM, THAT WAS BUDGETED BEFORE STRUCTURE STRUCTURES, JUST, YEAH.
AND SO THEY WERE, THEY WERE GOING, UH, HOT AND HEAVY.
UH, AFTER DEMOLITION AND ADDRESSING THE BLIGHT WITHIN THE COMMUNITY WITH 50,000, I WOULD SAY WE WOULD BE SUBSTANTIALLY LESS, I WOULD SAY WE START COUNTING ON ONE HAND, MAYBE AT HIGH POINTS, MAYBE TWO, BUT I WOULD SAY MOST LIKELY ON ONE HAND, UH, YEAH, ROUGHLY FIVE, UM, THAT WE WOULD BE, BE ABLE TO ADDRESS.
UM, THIS WOULD SUBSTANTIALLY SLOW DOWN SOME OPERATIONS WITHIN THE ORGANIZATION BECAUSE THE, THE WORK THAT'S NECESSARY, THE ADMINISTRATIVE WORK NECESSARY THAT GOES WITH DEMOLITION WILL PROVIDE OPPORTUNITIES, UH, FOR, UM, EFFICIENCY OR JUST COST SAVINGS, UH, THROUGH MULTIPLE DEPARTMENTS.
AND THAT COULD BE LEGAL DEPARTMENT, THAT COULD BE THE COURTS, IT COULD BE JUST A, UH, A MULTITUDE OF DEPARTMENTS WITHIN THE ORGANIZATION.
BUT THE, THE HIGH RISK POINT THAT WE HAVE TO BE AWARE OF IS WHAT HAPPENS WITH THE IMAGE OF BAYTOWN.
UM, THE, THE NEXT THING IS GONNA BE AROUND OPERATIONS AND, UM, OPERATIONS.
[01:20:02]
I'M GONNA PRIMARILY FOCUS ON THE POLICE AND FIRE ASPECT OF THE ORGANIZATION WHEN IT COMES DOWN TO WHAT OPERATIONS LOOK LIKE, YOU WILL SEE, YOU WILL SEE A GRAPH THAT REPRESENTS WHAT I'M TALKING ABOUT.UH, WHEN WE TALK ABOUT THE TAX RATE, AND IT'S NOT, IT'S NOT PERTINENT TO BRING IT UP HERE AT THIS POINT.
UM, BUT WHEN YOU HAVE POLICE AND FIRE, THEY HAVE, THEY HAVE SOMETHING DIFFERENT THAN THE REST OF THE DEPARTMENTS DO, UH, IN THAT THEY HAVE THE CCPD AND THE FIRE CONTROL THAT HELP SUPPORT THEIR OPERATIONS.
OKAY? SO WHEN PUSH COMES TO SHOVE AND THEY HAVE HARD ISSUES TO ADDRESS, THOSE TWO FUNDS ARE ABLE TO SUPPORT THEM IN TOUGH TIMES.
AND THERE'S A, THERE'S A GIVE AND TAKE THAT THEY CAN LOOK AT THINGS.
THEY STILL HAVE TO PRIORITIZE THINGS.
I'M NOT SAYING IT'S JUST SOME EASY OUT RIGHT? IT'S NOT AN EASY OUT FOR THEM.
THEY STILL HAVE TO PRIORITIZE, UH, OPERATIONS THAT ARE GOING ON, BUT THEY DO HAVE THE OPPORTUNITY TO, TO FALL BACK ON THOSE TWO FUNDS IF WE WERE TO MAKE ANY OTHER CHANGES IN POLICE AND FIRE.
WHEN IT COMES DOWN TO BUDGET REDUCTIONS, AT THIS POINT, WE ARE LOOKING AT PERSONNEL PERIOD.
THERE, THERE'S NO IFS, ANDS, OR BUTS.
IF WE ARE LOOKING TO DECREASE FROM FIRE AND POLICE, I WOULD SAY BY AND LARGE, UM, THAT RINGS ACROSS THE ORGANIZATION.
I DON'T, I'M NOT TO MY DEPARTMENT HEADS IN HERE, I'M NOT TRYING TO EXCLUDE YOU.
Y'ALL SEEN THE NUMBERS, Y'ALL LOOK AT WHERE THINGS ARE.
WE ALL RUN A VERY LEAN OPERATION AND THAT WILL BE VERY EVIDENT WHEN YOU LOOK AT, UM, A, A CHART HERE IN, IN, IN A FEW SLIDES, WHICH BRINGS US TO A PIVOTAL POINT THAT WE HAVE TO UNDERSTAND WHERE, WHERE WE ARE AT AS AN ORGANIZATION.
UM, CAROL MENTIONED THAT, UM, IT'S IMPACTFUL ON THE ORGANIZATION AND IT IS, UM, YOU HAVE MADE VERY LARGE JUMPS HERE AND UM, A LOT OF IT IS NOT REALLY IMPACTING THE COMMUNITY AS BY AND LARGE, BY AND LARGE, IT IS NOT IMPACTING THE COMMUNITY.
IF WE CONTINUE DOWN THE SAME PATH THAT WE HAVE BEEN CONTINUING DOWN, WE AS A GROUP WILL BE MAKING SUBSTANTIAL CHANGES TO HOW WE OPERATE.
WE ARE NO LONGER AT THE POINT OF, HEY, CAN WE FIND FLUFF? CAN WE FIND ANY KIND OF JUST, UH, EXTRA, EXTRA TIDBIT OF FAT THAT THAT'S THERE? AT THIS POINT, WE ARE LOOKING AT POSITIONS AND PROGRAMS IF WE START REDUCING THE BUDGET MUCH FURTHER THAN IT IS AT THIS POINT.
UM, IN THIS BUDGET FOR FY 26, THERE ARE EIGHT POSITIONS THAT WILL BE ELIMINATED.
UH, THE EIGHT POSITIONS BY AND LARGE ARE VACANT.
UH, YOU HAVE ONE THAT IS CURRENTLY FILLED.
WE'RE NOT GONNA GET INTO THE DETAILS OF THOSE.
THAT'S NOT APPROPRIATE TO TALK ABOUT ALL THAT AT THIS TIME.
UH, BUT KNOW THAT THERE IS AN IMPACT TO THE ACTUAL POSITIONS WHEN WE ARE, UM, LOOKING AT PROPOSED OR WHAT THE PROPOSED BUDGET IS FOR FY 26.
SO WHEN WE LOOK AT THAT, WE DO NEED SOME DIRECTION WITH THE SERVICE DELIVERY CHANGES THAT ARE THERE, UM, AND REALLY SEE WHAT YOUR FEELINGS ARE, WHAT YOUR PHILOSOPHY STANDS TO.
AND THIS WILL DIRECTLY TIE INTO, UM, OUR NEXT CONVERSATION THAT GOES WITH THE TAX RATE.
SO WE'RE GONNA HANDLE THIS FIRST, BUT WE CAN ALWAYS COME BACK TO THIS IF WE NEED TO COME BACK TO THIS AFTER WE TALK ABOUT THE TAX RATE.
BUT I AM GONNA ASK SOME QUESTIONS AND JUST KIND OF GET YOUR THOUGHTS JUST LIKE WE DID WITH THE, UH, THE GO BOND.
AND SO THE FIRST QUESTION WOULD BE WHAT STANDS OUT TO YOU? UH, WITH THE BUDGET PREVIEW THAT I BY NO WAY WILL BE SUPPORTIVE OF CUTTING ANY POSITION.
AND I WOULD LIKE TO KNOW WHICH ONES THEY ARE SPECIFICALLY THAT ARE NOT FILLED RIGHT NOW AND WHY YOU THINK THE CITY CAN RUN WITHOUT THEM.
THE DRAMATIC CHANGE TO OUR DEMOLITIONS.
WHAT'S THAT? THE, A DRAMATIC CHANGE TO OUR DEMOLITIONS.
OH YEAH, I'M SORRY BECAUSE I, WHEN YOU SAID THAT I, I WANTED TO KNOW WHERE MOST OF THE DEMOLITIONS WERE, WERE DONE.
THE 40 TO 60 OR WHATEVER THE NUMBER IS BECAUSE I DO WORRY ABOUT, UM, SPECIFIC DISTRICTS BEING
[01:25:01]
IMPACTED MORE FROM THE BUDGET VERSUS OTHERS.I KNOW WHEN YOU WERE TALKING ABOUT THE T SPOT, THERE WAS THREE 30 I 10, UM, YOU KNOW, THAT COULD SEE SOME BIG CHANGES, VERY VISIBLE CHANGES WITH THE AMOUNT OF GRASS, THREE FOOT HIGH, THAT SORT OF THING.
UM, SO ARE ONE PART OF TOWN GOING TO BE IMPACTED MUCH MORE? SO WHETHER IT'S THE I 10 AREA AS FAR AS GRASS VERSUS DEMOLITION IN THE, IN THE OLDER PART OF TOWN.
I THINK FOR ME, UM, WHEN IT COMES TO DEMOLITION, WHAT KIND OF POLICIES CAN WE PUT TO PUT MORE OF THE ONUS ON THE PROPERTY OWNERS BECAUSE THEY'RE NOT BEING RESPONSIVE, WHICH IS WHY WE HAVE TO DEMOLISH MM-HMM
AND WHAT DO WE DO TO PUT IT BACK ON THOSE PROPERTY OWNERS IF THEY'RE ABSENT, IF THEY JUST ARE NONRESPONSIVE, ARE RESPONSIVE, BUT THEY DON'T HAVE THE MONEY TO TEAR DOWN.
SO I'D KIND OF LIKE TO SEE THAT.
AND THEN OF COURSE, WHAT CAN WE DO TO PUT IT BACK ON THEM, WHETHER IT'S UM, HIGHER FINES OR, I DON'T KNOW, I DUNNO THOSE ANSWERS, BUT THAT'S ONE THING.
UM, AND I KNOW PROBABLY ONE OF THE BIGGEST QUESTIONS THAT I GET IN TERMS OF MOWING IS IN THEIR WORKS A DOUBLE STANDARD WHEN IT COMES TO, WE WANT HOMES TO HAVE NICELY MANURED LAWNS.
LAWNS, BUT OUR HIGHWAYS AND MAYBE SOME COMMERCIAL CORRIDORS THAT ARE NOT REGULARLY MOW.
AND HOW CAN WE ENFORCE EVERYDAY CITIZENS TO MAKE SURE THAT THEIR NEIGHBORHOODS ARE NICE AND NEAT WHEN ALL THE OTHERS OR NOT? AND, UM, BUT COULD WE PERHAPS, UM, 'CAUSE I I, AND I DON'T REMEMBER WHICH ONE'S AT THE TOP OF MY HEAD, BUT WHEN IT COMES TO THE HIGHWAYS, UM, COULD WE ENACT MAYBE WALLFLOWERS WHERE WE MAY NOT NEED TO MOW ALL THE TIME? AND WOULD THAT PUT US IN A DANGEROUS SITUATION WHERE PEOPLE ARE WANTING TO STOP AND TAKE PICTURES ALL THE TIME BECAUSE THERE'S ALL THESE PRETTY WALK HOURS.
BUT THINKING OFF THE TOP OF THAT, ONE THING I'D LIKE TO ADD THAT I FELT TO PUT ON THE PREVIOUS THING THAT WE HAVE NOT, THAT WE NEED TO ALSO BE MINDFUL OF IS THAT, UM, FROM THE RETREAT WE HAD LOOKED AT, WE HAD EXPLORED THE HARRIS COUNTY TRANSPORTATION SYSTEM TRANSIT SYSTEM, UM, BY AND LARGE, I WOULD SAY THAT IS NOT A PATH FORWARD THAT WE NEED TO EXPLORE AT THIS POINT.
AND SO THERE WILL BE AN ASK ON DO YOU WANT THAT EXPENSE MOVED TO THE MDD, UH, OR DO YOU WANNA KEEP IT IN THE GENERAL FUND? SO THAT IS ONE THING THAT WE DO NEED TO CONSIDER TODAY.
UM, IN ADDITION TO THAT, THE TEAM HAS BEEN WORKING ON REDEFINING STANDARDS WITHIN THE ORGANIZATION, UH, WHEN THAT COMES DOWN TO JANITORIAL, WHEN IT COMES DOWN TO MOWING FACILITIES, MOWING THE PARKS, UH, AND STANDARDIZING ALL OF THAT.
UM, BECAUSE WE ARE SEEING SUBSTANTIAL SAVINGS, UM, JUST ON REDOING THAT, CLIFF HAS HAD SOME GREAT IDEAS, JAMIE, AND HAS BEEN WORKING WITH ALL THE DIRECTORS ON REDEFINING A PROCESS FOR WHAT THAT LOOKS LIKE.
UM, I'M NOT TRYING TO EXCLUDE ANYBODY IF I'M FORGETTING YOU.
IT'S NOT INTENTIONAL, I'M SORRY.
UM, AND THEN WE ALSO NEED TO REMEMBER THAT WE WILL BE ADDING A $250,000 MOWING CONTRACT TO THE FY 26 PIECE THAT HAS TO BE ACCOUNTED TOWARD, UM, UH, FOR, FOR MOWING.
AND SO WE DO NEED TO REMEMBER THOSE THINGS AS WE MOVE INTO THIS BUDGET.
SO WE'RE GONNA BE ADDING TWO 50, BUT WE'RE GONNA BE SAVING 500.
SO THE ORIGINAL INTENT THAT WHEN WE HAD SPOKEN WAS THAT WE, THAT STAFF WOULD, THAT STAFF WOULD PROPOSE UP TO $3 MILLION IN SAVINGS.
AND THEN AT THE RETREAT WE TRIED TO IDENTIFY AN ADDITIONAL MILLION TO LOOK AT A FOUR, UH, $4 MILLION REDUCTION, WHICH IS ROUGHLY A 3% REDUCTION IN THE BUDGET.
UH, THAT MILLION WAS IDENTIFIED WITH THE DEMOLITION THAT, UH, THE HARRIS COUNTY TRANSIT, UM, AND REDEFINING, UM, SOME OF THE PROGRAMS THAT WE HAD.
AND RIGHT NOW THAT 400,000 FROM HARRIS COUNTY TRANSIT HAS GONE AWAY.
UH, BUT WE ARE ROUGHLY AROUND ROUGHLY AROUND 3.5 AT THIS POINT.
AND SO, BUT WE NEED TO REMEMBER THAT WE WILL ADD TWO 50 BACK FOR MOWING, WHICH WOULD BE A SAVING A NET SAVINGS OF ROUGHLY 3.2 MILLION IF WE CHOOSE TO MOW IT.
[01:30:02]
IF YOU STAY STICK WITH, YEAH, IF WE CHOOSE TO MOW IT, IF WE TAKE MR. LESTER'S APPROACH AND JUST GRADE IT, UM, I DON'T KNOW HOW SOON WE NEED TO MOW IT AFTER THAT POINT.SO IF YOU DO A DO OR OFF, WE TOO QUICK
UH, I WOULD SAY WHAT STANDS OUT TO ME IS JUST, UM, THAT THESE CUTS ARE UNSUSTAINABLE EVERY YEAR.
UM, I MEAN, I THINK LOOKING AT THE, YOU KNOW, THE REVIEW FROM LAST YEAR AND THEN WHAT WE'RE LOOKING AT THIS YEAR, YOU CAN TELL IT'S GETTING, IT GETS A LITTLE MORE PAINFUL EACH YEAR.
UM, AND SO IT, YEAH, IT'S, IT'S UNSUSTAINABLE.
UM, AND SO, I MEAN, I THINK WE'LL GET THERE.
IT'S PROBABLY GONNA BE TAX RATE.
UM, BUT UM, YEAH, I MEAN THAT'S WHAT STANDS OUT.
OBVIOUSLY WE HAVE TO DECIDE HOW WE'RE GONNA ADDRESS THESE THINGS.
WE'VE ONLY GOT SO FAR, UM, INFLATION IS A REAL THING, RIGHT? SO STAYING LEVEL FOREVER, IT'S JUST, I MEAN, I WOULD LOVE TO, BUT IT'S NOT REALISTIC.
HOW MUCH IS THIS AS A RESULT OF INFLATION? UH, THERE'S MULTIPLE FACTORS AT PLAY, MAYOR, UM, THAT I, I WOULDN'T BE, I WOULDN'T BE COMFORTABLE ANSWERING HOW MUCH OF IT IS JUST INFLATION.
I, I, IT DEFINITELY PLAYS A FACTOR.
UH, BUT THERE YOU HAVE INFLATION.
IF THE TAX RATE YOU HAVE, WE GIVE RAISES.
BUT I'M SAYING, I'M ASKING WHAT, WHAT PERCENTAGE WOULD YOU GIVE THAT'S, WOULD YOU, UH, WOULD INFLATION ACCOUNT FOR THIS? UH, I'D HAVE TO TO GIVE YOU LIKE AN ACCURATE, NOT ACCURATE, JUST ROUNDABOUT, BUT I WOULD JUST GO OFF WHAT THE, WHAT THE FEDERAL INFLATION RATE IS, WHICH IS ANYWHERE FROM, YOU KNOW, THREE TO 7% DEPENDING ON WHICH, WHICH DATA POINT YOU'RE LOOKING AT AND WHICH, UH, WHICH CATEGORY YOU'RE LOOKING AT ON THINGS.
SO, UM, I I DON'T WANNA SPECULATE MAYOR, AND I DON'T WANNA GIVE YOU ALL WRONG INFORMATION.
UH, I, I I BELIEVE IT'S THREE TO 7% OF JUST OVERALL COST GO INTO MM-HMM
THAT, BUT OUR BIGGEST DRIVER IS EMPLOYEE COST.
AND UH, THE INFLATION FACTOR IS GONNA BE OUR COST OF LIVING ALLOWANCE THAT IS FACTORED IN, WHICH IS ROUGHLY 4%.
AND, AND THAT IS, THAT IS BY AND LARGE 90 SOMETHING PERCENT OF THE OVERALL COST OF, AND THAT'S WHY I WAS ASKING THE QUESTION, UH, SO THAT THE IS ALL ABOUT CITIZENS UNDERSTANDING WHY WE'RE HAVING THESE DISCUSSIONS.
AND I WANT THEM TO UNDERSTAND THAT IT'S NOT BECAUSE OF MISSPENDING ON OUR PART.
THESE ARE SOME THINGS WE CAN'T CONTROL.
UH, YEAH, IT'S, UH, IT IS JUST THE COST OF LIVING INCREASES FOR THE EMPLOYEES AND FOR, SO BAY TOWN'S PHILOSOPHY IS TO REMAIN COMPETITIVE WITH THE HIRING FORCE AND TO PAY A VERY GOOD WAGE TO HAVE, MAKE SURE WE HAVE THE BEST EMPLOYEES HERE.
AND THAT PHILOSOPHY PUTS US IN A BRACKET PROBABLY ABOVE, BUT I WOULD ARGUE WITH ANYBODY HERE AND ANYBODY IN THE COMMUNITY THAT IS WORTH THE DOLLARS THAT YOU SPEND TO MAKE SURE THAT YOU HAVE THE QUALITY EMPLOYEES THAT YOU NEED HERE.
I WILL TAKE THAT PAUSE AND ASK, UH, WHAT ARE SOME POTENTIAL CALLS YOU, YOU'LL RECEIVE WITH THESE CHANGES? HOW COME THE SIDE OF THE ROAD CAN BE THREE FOOT TALL, BUT NOT THE GRASS IN MY YARD? THAT'S A GOOD QUESTION.
IT'S STATE, WHICH IS WHAT I KNOW MY RESPONSE HAS BEEN.
T THAT'S NOT WELL RECEIVED RECALL.
UM, AND I THINK GOING BACK TO TAKE A, YOU KNOW, IT WOULD BE TIED TO WHAT OUR TAX RATES ARE GOING TO BE.
SO THOSE WOULD BE THE CALLS THAT WE ALSO RECEIVE.
LIKE IF WE CHOOSE TO STAY STAGNANT OR GO ASCENT ABOVE WHAT THE NO REVENUE IS AND THAT THOSE ARE THE CALLS THAT WILL GIVE YOU RAISING THE TAXES.
SO I KNOW SOME OF THE ONES I'VE GOTTEN CONCERNING STRUCTURES, PARTICULARLY BUSINESSES AND SOME OLDER PART OR STRUCTURES IN SOME OLDER PART OF TOWNS THAT USED TO BE BUSINESS.
WHY ARE THEY NOT, WHY ARE YOU ALL NOT MAKING THEM DO SOMETHING ABOUT THIS PROPERTY? MM-HMM
AND I'M HAVING A, I'M GETTING CITATIONS FOR MINOR THINGS COMPARED TO WHAT THIS BUILDING LOOKS LIKE AND IT'S BEING RAN THROUGH GRAFFITI EVERYWHERE AS THE PROPERTY IS A MESS.
WHY ARE THEY ALLOWED TO DO THAT? BUT I HAVE TO LIVE BY THE CODE.
[01:35:01]
YOU WERE, WHEN THE OLD, UM, THE ORIGINAL SANCTION IN THE HOSPITAL WAS PULLED UP AND THE KID FELL AND HURT THEMSELVES MM-HMMAND, YOU KNOW, THAT, UM, LED TO THINGS MOVING A LITTLE BIT QUICKER AND GETTING DEMOED.
I'VE HAD A GENTLEMAN SHOW UP TO TWO OF THE LISTENING TOURS THAT HAVE BROUGHT UP DEMOLITION OF A VERY SPECIFIC BUILDING IN DISTRICT TWO, UM, THAT HE HAS CONCERN.
SO I, I MEAN THAT'S GONNA BE, THAT'S GONNA CONTINUE TO BE CALLS, BUT I DON'T KNOW THAT USING THAT SPECIFIC EXAMPLE THAT THAT BUILDING'S BEEN THERE WHEN WE WERE ABLE TO DEMO 60 VERSUS IF WE GET RID OF THE WHOLE BUDGET.
SO, UM, I DON'T KNOW THAT I'LL HAVE AN INCREASE IN CALLS DISTRICT TWO AND I'M SURE THERE'S OTHER, YOU KNOW, DISTRICT ONE AND THREE MAYBE, BUT, UM, DISTRICT TWO HAS DONE A LOT OF, A LOT OF VOTING THAT NEED DEMOED AND IT SEEMS TO COME UP FREQUENTLY, BUT I DON'T, I DON'T THINK KEEPING THAT UNDER BUDGET CAUSED THAT PROBLEM.
I CAN SEE GETTING A LOT MORE CALLS AS FAR AS TRAFFIC.
UM, THERE'S, THERE'S SOME PROBLEM, HISTORICAL PROBLEM INTERSECTIONS THAT I'M PROBABLY ALWAYS GETTING CALLS ABOUT.
THINK ABOUT THOMPSON ROAD AND, AND DECKER AND, UM, A LOT OF QUESTIONS ABOUT STREET, UH, SIGNALS.
SO, UM, ALSO THE STREET CALMING PROGRAM ALWAYS GET CALLS ABOUT SPEEDERS AND, YOU KNOW, UM, AND THAT IS THOSE NEIGHBORHOODS.
SO THAT'S SOMETHING THAT I DID SEE INCREASING THOSE TYPE OF CALLS.
CAN YOU EXPLAIN TO ME WHAT, HOW WOULD, UM, TRAFFIC CALLS INCREASE WITH THIS TIED TO THIS BUDGET? UM, JUST FOR EXAMPLE, YOU GOT, I WENT TO A EAST POINT, UM, HOA MEETING AND THEY WERE TALKING ABOUT THE ISSUES IN THEIR NEIGHBORHOOD, PEOPLE'S FEEDING THROUGH THEIR NEIGHBORHOOD AND USING THAT NEIGHBORHOOD AS A THOROUGH FAIR 'CAUSE OF US, THE CONSTRUCTION ON VILLE AND GAR ROAD, AND THEN ALSO, YOU KNOW, TALKING ALONG CORRIDOR, GOING THROUGH PEOPLE HERE IN RUSH HOUR TIMES USING, UH, LAKEWOOD AS BUREAU AFFAIRS AND ISSUES WITH THAT.
SO, UM, I COULD SEE THAT AND BEING AN ISSUE AS WELL, AS WELL AS WE HAVE WAREHOUSES ALONG THOMPSON ROAD DURING PEAK HOURS, YOU KNOW, IF THERE'S ISSUES WITH THOSE LIGHTS, UM, THAT COULD CAUSE SOME TRAFFIC ISSUES.
SO, AND, AND THESE ARE HISTOR, THESE ARE BASED ON HISTORICAL MATTER FACTS, JUST, JUST ON THEY CAN, AND I THINK THAT THE TRAFFIC CALMING, I THINK, UM, THAT SYSTEM DOESN'T REALLY WORK FOR MAJOR THERAPIST BECAUSE YOU CAN'T JUST GO SPEAK THERE.
UM, I WOULD SEE THIS INCREASE IN NEIGHBORHOODS.
YEAH, THAT'S EXACTLY, THERE'S NOT A MAIN ARTERY THAT PEOPLE HAVE TO TRAVEL TO.
QUESTION ON THE, UH, CCPD AND FIRE CONTROL BUDGETS TALK ABOUT SPECIAL FUNDS TO COVER OPERATIONAL EXPENSES.
WHAT DOES THAT INCUR? SO I'M CONCERNED ABOUT USING OPERATIONAL EXPENSES.
UH, WHAT I MEAN BY THAT IS REPLACING LIKE FIRE CONTROL, REPLACING THE FIRE TRUCKS AND CAPITAL EQUIPMENT, EQUIPMENT, STUFF LIKE THAT.
THAT'S MY OPINION IS WHAT IT SHOULD BE USED FOR.
UM, YOU KNOW, BECAUSE WE JUST A FEW YEARS AGO WE SHIFTED PERSONNEL OUT OF RIGHT.
SO EVERYTHING, I DIDN'T SEE THAT SHIFT BACK.
EVERYTHING THAT'S, I, SO BASICALLY I DON'T WANNA MISCHARACTERIZE IT.
IT'S MOST, IT'S ALMOST, I BELIEVE ALL OF IT IS ASSETS AND TO CHIEF'S POINT ON LIKE THERE'S SOME SOFTWARE.
SO THAT'S WHY I'M SAYING MOST, LIKE SOME SOFTWARES IN THERE.
BUT BY AND LARGE IT'S ALL CAPITAL, UH, ASSETS.
TYPICALLY ONE TIME TYPE EXPENSES AND NOT RIGHT CURR.
AND THEN I AGREE WITH MY COLLEAGUE, I'D LIKE TO JUST FOR REFERENCE, KNOW WHAT POSITIONS ARE VACANT ARE GONNA BE ELIMINATED, UNDERSTOOD.
AND, AND WHAT THOSE POSITIONS WOULD COVER.
BECAUSE IT MAY BE STUFF THAT I AGREE WITH, IT MAY BE SET THAT I DON'T AGREE WITH, SO WITHOUT KNOWING THE POSITION.
UH, WHAT CONCERNS OR HOPES DO YOU HAVE ABOUT MOVING THIS FORWARD? I'LL START IF Y'ALL DON'T MIND.
UM, SOME OF THE HOPES THAT I HAVE HERE, I THINK A POSITIVE THAT'S COME OUT OF THIS, UM, IF I CLIFF, IF I HEARD YOU CORRECTLY, UM, MOVING THE TDOT THING HAS GIVEN THE PARKS TEAM THE ABILITY TO NOT MOW TXDOT, BUT GIVEN THEM THE ABILITY TO MOW OUR PARKS AND FOCUS ON STUFF THAT
[01:40:01]
IS BAY TOWNS.AND SO I THINK THERE'S A LITTLE BIT MORE PRIDE THAT CAN COME OUT OF, OUT OF SOME OF THAT.
UM, AND IT GIVES THEM A SENSE THAT THEY'RE JUST NOT TAKING CARE OF SOME THAT CONTRACTORS JUST AREN'T MOWING THE PARKS THAT THEY TAKE A LOT OF PRIDE IN.
RIGHT? AND SO I THINK THAT'S A, THAT'S A GOOD HOPE AND JUST A LITTLE BIT OF POSITIVE VIBE THAT COMES THROUGH WITH THIS.
UM, IN ADDITION TO THIS, UH, IN ADDITION TO THAT, THERE'S JUST A CHANCE TO DO LESS, RIGHT? LIKE SOME OF THIS YES, IT'S, IT'S, IT'S A STRUGGLE FOR THE ORGANIZATION, BUT IT'S ALSO JUST NOT TRYING TO, TO DO MEDIOCRE AT SO MANY THINGS.
WE CAN REALLY START FOCUSING ON THINGS THAT WE DO WELL AND, AND JUST THOSE THINGS.
SO JUST TRYING TO BRING A LITTLE POSITIVE VIBE TO THE CONVERSATION CONCERNS AND HOPES ARE TOGETHER.
SO I DON'T WANNA RUIN THE POSITIVE VIBE, BUT SOMETHING MR. POWELL SAID EARLIER, UM, ONE OF MY CONCERNS IS DEFINITELY THIS NOT BEING SUSTAINABLE.
UM, FINISHING MY THIRD YEAR HERE AND EVERY YEAR IT'S CUT, CUT, CUT SLASH SLASH SLASH, UM, AND I THINK WHAT HE SAID IS IT'S NOT SUSTAINABLE.
I MEAN, I DON'T, I DON'T, I NO LONGER, MY CONCERN IS I DON'T, I DON'T SEE THE FIVE YEAR PLAN.
I DON'T SEE WHERE WE'RE COMING TO A HALT, YOU KNOW, GOING BACK TO THAT CHART WHERE LINES ARE COLLIDING AT, I DON'T HAVE A LOT OF FAITH RIGHT NOW IN SEEING IT IN IT MM-HMM
BECAUSE NOW WE'RE BUDGET NUMBER THREE THAT I'VE BEEN ABLE TO BE PART OF IT.
MY HOPE IS THAT STAFF LED BY YOU WOULD START TO SHOW ME WHERE THIS TURNS TO MORE OF A POSITIVE MOOD WITH, WITH US SUPPORTING IT.
BUT RIGHT NOW I DON'T, I DON'T SEE THAT.
DID YOU, DID YOU, YOU SHOW US A CHART WHEN THOSE LINES WOULD CROSS? I DID WHAT YOU, DO YOU REMEMBER WHAT YEAR THAT WAS? THAT STARTED IN 2020, I THINK IT WAS FEBRUARY, MARCH OF 23 WHEN IT WOULD START TO OH, WHEN IT STARTED GOING UP? YEAH.
UM, I BELIEVE IT WAS 2020, MAYBE 2019.
NO, I'M ASKING WHEN IT WAS ACTUALLY GONNA CROSS.
AND THEN WE MAY START SEEING A CHANGE.
NO, WE'VE BEEN MAKING CHANGES TO AVOID THE CROSS.
SO IT WAS GONNA CROSS IN 25 MM-HMM
AND THEN WE STARTED MAKING MODERATE CHANGES THAT KIND OF KEPT IT JUST BEFORE CROSSING.
SO TO MRS. GRAHAM'S POINT, IT'S THE PARALLEL LINES ARE VERY NARROW AT THIS POINT.
AND BEFORE Y'ALL HAD A $10 MILLION GAP, UM, AND WITH THE $10 MILLION GAP, IT'S JUST, IT'S SHRUNK TO THIS POINT.
AND WE'LL, WE'LL GO THROUGH THAT WITH THE TAX RATE CONVERSATION A LITTLE BIT IN DEPTH.
ANY MORE HOPES? I WOULD HOPE THAT WE'RE COMING OUT TO ECHO WHAT YOU SAID FROM A DIFFERENT PERSPECTIVE.
WE'RE GONNA SEE A BRIGHTER FUTURE VERY SOON AND SOONER RATHER THAN LATER.
AND WHEN I'M SAYING SOONER, I'M HOPING THIS WITHIN THE NEXT YEAR OR TWO, WE CAN START SEEING WHERE WE'RE NOT SAYING THAT, HEY, ANY MORE CUTS THAT MAY AFFECT POLICE AND FIRE.
AND, UM, HOPEFULLY WE CAN GET BACK TO THE POINT TO WHERE WE CAN START PEOPLE DRIVING THROUGH OUR CITY ON SPUR THREE 30 AND 1 46 CAN TAKE PRIDE IN NOT SEEING THREE FOOT GRASS.
I MEAN, UM, THAT'S NOT SOMETHING I'M GONNA BE PROUD OF AND THAT'S NOT SOMETHING I SEE IN OTHER CITIES.
AND I WOULD HOPE WE COULD GET BACK TO THE POINT WHERE OUR CITY LOOKS NICE AND WE COULD HAVE A SENSE OF PRIDE WHEN WE HAVE VISITORS COMING IN AND OUT.
ESPECIALLY IF WE'RE LOOKING AT BRINGING AMENITIES HERE OR THINGS HERE WHERE PEOPLE WILL WANT TO COME AND VISIT OUR CITY.
I, PART OF WHAT WE TALK ABOUT AS, AS THE DIRECTOR TEAM IS THAT WE ARE HALFWAY OUT OF THE WOODS.
I SEE THE LIGHT, I SEE THAT WE ARE ON OUR WAY OUT.
UM, THERE ARE, THERE HAVE DECISIONS BEEN MADE BY EVERYBODY, ALMOST EVERYBODY IN THIS ROOM THAT ARE PUTTING US IN THE RIGHT DIRECTION.
THE SKY IS NOT FALLING ON BAYTOWN.
WE DON'T, IT'S NOT A DOOMSDAY SCENARIO, IT'S JUST DIFFERENT THAN HOW WE'VE ALWAYS OPERATED.
WE ALWAYS HAD THIS VERY LARGE BUDGET GAP AND WE HAD SUBSTANTIAL RESOURCES TO, TO LOOK AFTER.
PART OF THAT IS UNDERSTANDING THAT WE, THAT A DIFFERENT GOVERNMENTAL ENTITY WAS
[01:45:01]
DOING THE TAX RATE DIFFERENTLY, WHICH GAVE US A FALSE SENSE OF ADDITIONAL MONEY THAT WE IDENTIFIED IN A PREVIOUS BUDGET.AND ONCE WE ACCEPTED THAT THERE WAS A FAULT THERE BY THAT ORGANIZATION, WE HAD TO MAKE A CHOICE ON RAISING THE TAX RATE OR KEEPING IT STABLE JUST TO KEEP A NORMAL PATH.
AND WE CHOSE JUST TO STAY STABLE, WHICH HURT US A LITTLE BIT.
IT HURT A LITTLE BIT MORE, UM, THAN IT SHOULD HAVE.
BUT WHAT IT DID IS SET US UP THAT WE NOW HAVE WHAT OUR BASELINE IS AND WE CAN GROW FROM THERE.
Y'ALL HAVE ALREADY MADE DECISIONS, WHICH I WILL TALK ABOUT IN THE TAX RATE PIECE THAT ARE GOING TO REDUCE SOME OF THAT, UM, THAT DOWNWARD TRAJECTORY ON REVENUE.
AND, UM, WE ALSO HAVE MORE THINGS COMING IN THE CHAMBERS COUNTY THAT ARE GOING TO BE BENEFICIAL.
THE SAN JACINTO MARKETPLACE IS COMING ONLINE.
THE SALES TAX THAT'S GONNA COME FROM THAT IS GONNA BE BENEFICIAL TO THE CITY WHEN THAT THAT, UH, AGREEMENT, UH, IS OVER.
AND SO YOU HAVE A VERY BRIGHT FUTURE IN THE CITY OF BAYTOWN.
WE ARE JUST EXPERIENCING WHAT MOST CITIES GO THROUGH EVERY SINGLE YEAR.
BAYTOWN HAS BEEN VERY FORTUNATE NOT TO HAVE TO DEAL WITH THIS, BUT THIS IS SOMETHING THAT MOST CITIES AROUND THE, THE NATION AND DEFINITELY IN THE STATE HAVE TO DEAL WITH ON A, ON A ANNUAL BASIS.
UH, WHAT MESSAGE DO YOU BELIEVE THIS SENDS TO THE COMMUNITY WITH THE, THE, THE FY 26 BUDGET? THAT WE'RE BEING PHYSICALLY, PHYSICALLY RESPONSIBLE THAT, UM, WE HAVE LISTENED TO THEM, ESPECIALLY WHEN IT COMES TO THE TAX RATE.
WE'VE LISTENED TO THEM FOR WHAT, SIX, SEVEN YEARS NOW.
AND HOPEFULLY THEY WILL UNDERSTAND THAT THIS IS A RESULT OF THAT AND THAT EVERYTHING YOU JUST SAID, WE'RE GONNA BE BETTER FOR IT.
AND WE'RE FORTUNATE NOT TO BE GOING THROUGH THIS EVERY YEAR, AS YOU SAID, SOME CITIES ARE, RIGHT.
AND WE TOOK THAT OPPORTUNITY TO STEP BACK, BE ANALYZED, REVIEW BEFORE MOVING FORWARD IN A MORE POSITIVE DIRECTION.
AND IT, IT'S OKAY TO HIT PAUSE AND BE ABOUT IT.
I THINK I WOULD JUST WANT THE COMMUNITY TO KNOW THAT WE'VE, I MEAN, WE'VE TRIED TO BE PROACTIVE IN, I MEAN, THERE'S, THERE'S GONNA BE
I MEAN, THOSE ARE, I AGREE WITH YOU.
BOTH OF THOSE THINGS ARE REALISTIC AND WE'RE WE'RE THERE ALREADY.
I MEAN THAT, THAT WE'RE ON A, YOU KNOW, ON A PATH TO ALREADY BE THERE BEFORE, IT'S JUST A HUGE SHOCK TO THE SYSTEM.
UM, AND SO THAT'S THE MESSAGE I WOULD HOPE THE COMMUNITY HERE IS WE'VE TRIED TO BE PROACTIVE.
UM, SOME OTHER COMMITTEES ARE REALLY GONNA BE IN A WORLD OF HURT, UM, WHEN THOSE THINGS COME DOWN.
AND UH, I HOPE WE'RE GONNA BE OUT IN FRONT OF THAT.
UM, I KNOW IT HASN'T BEEN EASY.
I APPRECIATE ALL THE WORK BY THE DIRECTORS THESE LAST FEW YEARS.
UM, PROBABLY HAVEN'T BEEN HAPPY WITH SOME OF US, BUT I DO APPRECIATE THE THE WORK THEY PUT IN TO GET US HERE.
AND UH, UH, JUST TAKE A MINUTE TO APPLAUD THEM FOR WORKING WITH THE TEAMS AND KEEPING THE MORALE UP WITH THEIR, WITH THEIR DEPARTMENTS BECAUSE UM, YOU KNOW, IT'S A LOT AND I KNOW IT IS AND ALL I CAN DO IS SAY THANKS.
TURN OVER THOSE LOCKS, HUH? YEAH,
UM, THE FINAL QUESTION HERE IS, ARE YOU COMFORTABLE WITH STAFF PREPARING THE FY 26 BUDGET BASED ON THIS PREVIEW DRAFT BUDGET? YES.
DO YOU, ARE Y'ALL WANTING THE TRANSPORTATION TO BE PAID OUT OF MDD? YES.
WHEN ARE WE GONNA TALK ABOUT THESE POSITIONS? THAT WILL BE PART OF THE BUDGET CONVERSATION, UH, WHEN WE KICK THAT UP IN JUNE.
SO WE WILL GET EVERYTHING TO Y'ALL AHEAD OF TIME.
YOU WON'T HAVE TO JUST BE SPUR OF THE MOMENT.
I'LL GET EVERYTHING AHEAD OF TIME SO Y'ALL CAN HAVE CONVERSATIONS ABOUT IT.
THIS TO ME, IT'S IN LINE OF WHAT WE'VE TALKED ABOUT
[01:50:01]
THE LAST COUPLE YEARS, SO LET'S, LET'S GET TO THE DETAILS.SO JUMPING INTO, UH, WHAT IS CURRENTLY THE LAST PLANNED CONVERSATION, UM, IF Y'ALL HAVE MORE HAPPY TO, TO BE HERE OR WE CAN COME BACK TOMORROW.
UM, THE TAX RATE, THE TAX RATE IS ONE OF OUR LARGEST DRIVERS.
AND WHAT WE'LL LOOK AT RIGHT NOW IS THE HISTORICAL PHILOSOPHY THAT'S AROUND THE TAX RATE, UH, AN OPERATIONAL UPDATE AND THEN, UH, ULTIMATELY END WITH DIRECTION ON THE TAX RATE BUILDING, UM, THE FY 26 BUDGET.
AND SO WHEN WE LOOK AT, UM, THE HISTORICAL PHILOSOPHY ON THE TAX RATE, WE WANT TO START OFF WITH THE FORMULA.
MAYOR, I KNOW THAT YOU HAVE NOT, UH, BEEN PART OF THIS CONVERSATION WITH THE BUDGET FORMER, WE DID GO THROUGH A LITTLE BIT AT THE RETREAT AND SO I'M NOT GONNA DWELL ON IT WITH EVERYBODY HERE.
I'M NOT GONNA GO BACK AND DO THE WHOLE THE PIECE WITH IT, BUT IT IS SOMETHING THAT WE WANT TO STICK WITH.
WE THINK IT'S, UM, WE THINK IT'S A VERY VITAL TOOL TO HELP LIKE RESONATE WITH PEOPLE ON HOW THE BUDGET OPERATES AND JUST POSSIBLY HELP US DECISION MAKING PROCESS.
UH, BUT WHEN IT COMES DOWN TO THE OVERALL PHILOSOPHY OF THE, THE TAX RATE WE LOOK AT IT IS THE LARGEST DRIVER.
UM, THE TAX RATE IS NUMBER TWO UP THERE REALLY.
AND, UM, IT IS THE LARGEST DRIVER OF OUR VALUE OR OUR, OUR REVENUE THAT WE GET FOR THE CITY.
AND SO THAT'S WHY WE DWELL ON IT SO MUCH BECAUSE IT IS VERY PERTINENT TO BUILDING OUR OVERALL BUDGET AND REALLY THE KICKOFF POINT TO OUR BUDGET FORMULA.
AND SO WHEN WE LOOK BACK, UH, HISTORICALLY SPEAKING AT THE COUNCIL'S PHILOSOPHY ON THE TAX RATE, Y'ALL STAYED, UH, WE AS THE CITY OF BAYTOWN STAYED AT A FAIRLY HIGHER TAX RATE COMPARED TO THE REST OF THE REGION.
UM, I BELIEVE AT ONE POINT WE WERE AT 83 CENTS, MAYBE HIGHER IN THE PAST.
UM, BUT WE WERE AROUND THE 80 CENTS MARK AND THERE WAS A SHIFT IN THE MINDSET WITH THE CITY OF BAYTOWN TO START LOOKING AT HOW DO WE START REDUCING THAT TAX RATE.
AND WHEN WE STARTED REDUCING THAT TAX RATE, IT WAS A PRETTY DRASTIC DOWNSHIFT IN THE TAX RATE.
AND SO, YOU KNOW, EACH CENT THAT YOU START, YOU'RE TALKING, YOU START TALKING A MILLION PLUS DOLLARS WITH EACH CENT THAT YOU START REDUCING THAT.
SO IF YOU GO FROM 83 WHERE WE WERE TO 70, NOW WE'RE TALKING ABOUT $13 MILLION IN REVENUE THAT HAS BEEN PULLED AWAY FROM THE, UM, THE COFFERS, UH, FOR OPERATIONS WITHIN THE CITY OF BAYTOWN.
AND UH, IN MY TENURE HERE, THERE HAS BEEN A, A, UM, A COMMITTED SHIFT TO STICK TO ALL BUDGETS WILL BE BUILT FIRST AND FOREMOST ON THE NO NEW REVENUE TAX RATE.
DOESN'T MEAN THAT WE HAVE TO STICK TO IT, IT'S JUST BUILD THE BUDGET OFF OF A NO NEW REVENUE TAX RATE, BUT WE WILL MOST LIKELY STAY WITH THE NO NEW REVENUE TAX RATE.
THAT'S BEEN LIKE THE, JUST THE WORKING PHILOSOPHY OF THE CITY COUNCIL IN MY TENURE HERE.
AND SO WHAT WE DO IS, WHAT I KIND OF WANT TO TALK, AND I'M GONNA GET UP AND I'M GONNA POINT AT GRAPHS AND UM, UM, I MAY DRAW JUST 'CAUSE I LIKE TO DRAW.
BUT, UM, THE FIRST THING I WANNA LOOK AT IS THE REVENUE.
AND WHEN YOU LOOK AT THE REVENUE FOR THE CITY OF BAYTOWN, THE TOP BAR IS OUR IDAS.
OKAY? THAT'S ALL OF OUR IDA A PAYMENTS.
THE BLUE LINE HERE, IF I GET THE COLORS WRONG ON CODE LINE.
SO THE BLUE LINE IS, UH, PROPERTY TAX, THAT'S OUR RESIDENTIAL AND COMMERCIAL BUILDINGS.
THIS ORANGE LINE IS OUR SALES TAX AND THE BOTTOM LINE IS OUR FRANCHISE FEES.
THERE'S ONLY ONE LINE UP THERE THAT'S INCREASING THE PROPERTY TAX, PROPERTY TAX, PROPERTY TAX.
THERE'S ONLY ONE LINE UP THERE INCREASING AND THAT'S PROPERTY TAX.
AND SO EVEN WITH PROPERTY TAX INCREASING, WE ALSO NEED TO REMEMBER THAT WE HAVE BEEN DECREASING OUR TAX RATE THE ENTIRE TIME AND BY POLICY, BY THE STATE THAT NO NEW REVENUE IS A NO NEW REVENUE, RIGHT? IT IS NOT A TAX RATE INCREASE.
SO AS WE, YOU MAY SEE THE BLUE LINE GOING UP, BUT YOUR TAXES HAVE NOT BEEN INCREASING BASED ON WHAT THE STATE IS SAYING ON THEIR, ON THEIR FORMULA BECAUSE WE HAVE BEEN ADOPTING THE NO NEW REVENUE RATE.
SO ON THE OTHER, ON THE OTHER PART OF THE GRAPH, YOU WILL SEE
[01:55:01]
WHAT PROPERTY TAX IS GROWING BY.SO THIS BLUE LINE, THIS IS THE PERCENTAGE THAT THAT BLUE LINE IS GROWING OR ACTUALLY THE BLUE LINE AND THE IVA LINE TOGETHER, RIGHT? THEY WORK IN TANDEM.
UH, THAT IS WHAT THEY HAVE BEEN GROWING.
UH, SO YOU SEE FROM 2020 TO 2021, THAT'S THE 6% BUMP THAT YOU SEE OVER THERE.
AND THEN IN 2022, FROM 21 TO 22, IT WAS A 3.5.
FROM 23 IT WAS 2.59, AND THEN 24 A 2.38% INCREASE.
WHAT THAT MEANS, WHAT YOU'RE SEEING UP THERE FOR OUR REVENUE IS OUR REVENUE IS ONLY GROWING 2.38% A YEAR WITH PROPERTY TAX BECAUSE FRANCHISE FEES ARE DECREASING, SALES TAX IS FLAT OR DECREASING, AND THEN OUR IDAS ARE DECREASING.
OUR IDAS ARE DECREASING BECAUSE EACH TIME THAT WE DECREASE THE TAX RATES, IT'S AUTOMATICALLY DRIVING DOWN THE IDA A PAYMENTS 'CAUSE THEY ARE DIRECTLY, UH, IN SYNC WITH WHAT OUR TAX RATE IS.
SO AS WE CONTINUE TO DECREASE OUR TAX RATE, WE ARE CONTINUING TO LOSE MORE MONEY IN OUR IDAS SIGNIFICANT MONEY.
WE'RE WE'RE TALKING SIGNIFICANT MONEY AT THIS POINT THAT THAT'S BEEN GOING DOWN FROM THE IDAS GOING DOWN, WHICH MEANS THAT OUR RESIDENTIAL AND OUR AND OUR COMMERCIAL BUILDINGS ARE PICKING UP MORE OF THE BURDEN AT THIS POINT.
AND THE NEW VALUE THAT YOU ARE SEEING IN THAT BLUE LINE IS, IS ACTUALLY NEW PROPERTIES PUT IN PLACE ON THE CITY BECAUSE BY THE FORM, HOW THE FORMULA WORKS FOR THE NO NEW REVENUE THAT PEOPLE ARE NOT PAYING ANY MORE THAN THEY DID THE PREVIOUS YEAR, UH, ON THEIR TAXES.
SO THAT GROWTH IS ONLY NEW VALUE BEING PUT ON THE GROUND.
THAT 2.38% GROWTH RELATE, UH, UH, EQUALS APPROXIMATELY TWO TO $3 MILLION EACH YEAR.
AND THE GOOD NEWS IS, AND WHEN I MENTIONED ON THE ON THE LAST CONVERSATION, Y'ALL HAVE MADE DECISIONS THAT WILL ASSIST IN MORE GROWTH BECAUSE ONE FACTOR THAT WE SEE HERE WAS THE HOMESTEAD EXEMPTION BEING PUT IN PLACE.
FROM PREVIOUS CONVERSATIONS, THE COUNCIL FEELS WE HAVE MET A VERY GOOD POINT WHERE THE HOMESTEAD EXEMPTIONS MAY HIT, IT MAY MAXIMIZE FOR A MAJORITY OF THE HOMES IN, UH, IN BAYTOWN.
AND IT MAY BE PRUDENT TO HIT A PAUSE RIGHT NOW FOR THE HOMESTEAD EXEMPTION.
THAT HOMESTEAD EXEMPTION E EQUATES TO ADDITIONAL AN ADDITIONAL $1.2 MILLION IN REVENUE FOR THE CITY OF BAYTOWN, WHICH WILL NOT, WHICH NOT HAVE AN ADVERSE EFFECT ON OUR, OUR REVENUE GENERATION.
IT WILL COME INTO PLAY INTO THE, INTO THE PROPERTY TAX CALCULATION, INTO THE NO NEW REVENUE RATE.
I DON'T WANT TO MISLEAD ANYBODY, IT WILL COME INTO PLAY, BUT IT GIVES US THE ABILITY TO HAVE A, A LITTLE EXTRA CHANCE OF GROWTH WHEN IT COMES TO THE REVENUE CREATION AT THIS POINT.
UM, AS I MOVE ON INTO THE NEXT PART OF THE FORMULA, UM, THAT YOU'RE FINE, I'M NOT GONNA TALK ABOUT THIS.
THIS IS OUR SALES TAX, UM, AND OTHER PIECES, THOSE ARE THE FEES THAT WE CHARGE.
IT'S, IT'S NOMINAL WHEN IT COMES DOWN TO IT.
UM, BUT ONE THING I WOULD LIKE TO FOCUS ON IS OUR REVENUE TRANSFERS.
CAN WE GO BACK TO THE OTHER CHART? YEP.
WHY WOULD YOU SAY THE SALES TAX HAS FLATLINED? BECAUSE IT HAS, I MEAN IT'S, IT'S WHAT, WHAT WHAT, I MEAN THERE'S, THERE'S MODERATE GROWTH THERE, BUT IT'S, IT'S LESS THAN A PERCENT.
BUT WHY FROM 2020 TO 2021, I FIGURED IT MAY HAVE GONE DOWN EXTREMELY CONSIDERING HOW PEOPLE ARE BUYING.
IS IT BECAUSE WE DON'T HAVE RETAIL HERE ENOUGH RETAIL HERE? UH, I WOULD SAY THAT WE HAVE MAXED OUT RETAIL HERE, UH, BY AND LARGE, RIGHT? UM, WHEN YOU LOOK AT THE LEAKAGE REPORTS AND OUR, OUR, UM, OUR DATA, WE HAVE ROOM TO GROW WITH MAYBE FURNITURE STORES.
WE HAVE ROOM TO GROW WITH MAYBE SOME CLOTHING OPTIONS THAT AREN'T PRESENT THAT WILL BE CAPTURED WITH, UM, SAN MARKETPLACE COMING IN.
BUT BY AND LARGE, RETAIL AS A WHOLE IS PRETTY TAPPED OUT FOR THE REGION WITH US AND MONT BELLEVUE.
SO THE, THE, THE RETAIL OPTIONS THAT ARE HERE IS WHAT IS WHAT'S SUPPORTED.
SO I WOULD SAY WE'RE, WE'RE PRETTY AT OUR CAP RIGHT NOW ON WHERE WE LOOK AT SALES TAX.
SO WHEN WE'RE LOOKING AT CCPD AND FIRE CONTROL SAYING THAT, THAT'S SALE TAX, RIGHT? THAT IS THERE'S, FOR THE FORESEEABLE FUTURE, IF IT PASSES,
[02:00:01]
IT'S PROBABLY NOT GOING TO GROW VERY MUCH.THEIR GROWTH IS, IS THE SAME AS THIS LINE RIGHT HERE.
AND SO THAT COULD AFFECT THE EQUIPMENT THAT THEY ARE NEEDED.
UM, RIGHT NOW, I WOULD SAY THEY'RE, 'CAUSE I WOULD SAY THAT EQUIPMENT'S GONNA KEEP GOING UP, WHICH MEANS IT'S GONNA COST MORE, BUT WE MAY NOT PARTICULARLY BE ABLE TO GENERATE THE REVENUE TO KEEP PURCHASE OF IT TO SOME EXTENT.
I KNOW, I KNOW CHIEF DOBSON HAS TALKED ABOUT MAKING FUTURE VEHICLES OUT OF EGGS, BUT ONCE THOSE STARTED GOING UP, HE HAD TO SWITCH THAT PLAN AS WELL.
WE CAN LAUGH, WE CAN LAUGH AT THIS STUFF.
I'M NOT, I'M NOT MAKING THAT, I'M TRYING WHAT YOU'RE SAYING, BUT YES, YOU'RE, TO AN EXTENT, YOU ARE, YOU ARE CORRECT.
IT'S, UM, THOSE RISING COSTS, UM, ARE NOT KEEPING UP WITH WHAT OUR SALES TAX IS.
AND WHEN YOU LOOK AT THE COST OF EVEN A POLICE VEHICLE OR JUST A STANDARD, UH, POLICE OFFICER, UH, PATROL VEHICLE, THEY HAVE GONE UP SUBSTANTIALLY.
AND DEPENDING ON WHAT HAPPENS WITH THE TARIFFS, THAT COULD BE VERY FAR IMPACTED, UH, WITH OUR VEHICLES, UM, AND OUR, OUR AMBULANCES AND, UH, FIRE ENGINES, UM, HAVE GONE UP SUBSTANTIALLY.
UH, JUST RECENTLY THEY'VE GONE UP.
THAT'S WHY WE'RE SEEING TWO TO THREE YEAR WEIGHTS AT THIS POINT.
AND, AND YOU BROUGHT SOMETHING ELSE BEFORE, BROUGHT SOMETHING ELSE UP BEFORE, AT LEAST IN OUR CONVERSATIONS WITH MY DISTRICT AND THE FACT THAT THERE ARE SOME DECISIONS THAT WE MADE THAT ARE POSSIBLY INJURING EASY GROWTH, WHICH IS OUR, UM, UM, STORAGE OR, UM, WAREHOUSES, WAREHOUSING, UM, BECAUSE THE NEED IS GOING TO BE THERE, OBVIOUSLY WE'RE, WE'RE IN LOGISTICS RIGHT NOW.
WE ALL THE GAS AND LOGISTICS AND THE FACT THAT WE'VE CURVED OUR, UM, OUR WAREHOUSE GROWTH, UM, HAS ALSO STIFLED OUR INCOME, OUR REVENUE
RIGHT? IT DOES HAVE AN IMPACT ON MM-HMM
SO, UM, THE OTHER FACTOR THAT WE HAVE TO CONSIDER WHEN WE LOOK AT, UM, OUR BUDGET IS WHAT WE TRANSFER IN FROM OTHER FUNDS TO REVENUE, UH, TO SUPPORT THE GENERAL FUND.
SO THIS IS WHAT OUR TRANSFERS CURRENTLY LOOK LIKE.
SO TO BE ABLE TO HAVE A BALANCED BUDGET.
IN THE PAST WHEN WE HAD THAT $10 MILLION GAP, WE WEREN'T TRANSFERRING VERY MUCH TO, UM, THE GENERAL FUND FROM OTHER FUNDS.
WE HAD A FEW PIECES WITH WATER SEWER, WE HAD SOME MDB AND SOME TURS MONEY THAT WAS TRANSFERRED IN FROM OTHER FUNDS.
I THINK THE AQUATICS TRANSFERRED SOMETHING IN, UM, BUT BY AND LARGE IT WAS PRETTY STANDARDIZED AND IT WAS BELOW $3 MILLION.
SO IN 23, THERE WAS A SHIFT WHEN THE COUNCIL STARTED GOING TOWARDS THE NO NEW REVENUE RATE AND THERE WAS A DRASTIC DROP IN REDUCTION, UM, FROM THE PROPERTY TAX THAT WAS NOT BUILT IN BEFORE.
THE ONLY WAY TO BALANCE THAT BUDGET WAS TO USE TRANSFERS FROM OTHER FUNDS.
AND SO FOR THE, FOR THE BUDGET THAT WE ADOPTED FOR FY 25, WE ARE OVER $9 MILLION THAT HAD TO BE TRANSFERRED IN FROM OTHER FUNDS TO BE ABLE TO SUPPORT THIS OPERATION.
AND, UH, LAST YEAR WE HAD TO TRANSFER, I BELIEVE SIX IN.
AND, UH, THE POINT BEING IS AS WE GO INTO FY 26, THOSE FUNDS ARE DEPLETED NOW.
SO THOSE FUNDS THAT WE PULLED FROM ARE NO LONGER THERE.
UH, THEY, THE MONEY HAS BEEN WITHDRAWN.
UH, WE MAY FIND A MILLION HERE, A MILLION THERE, BUT I MEAN, WE'RE, WE'RE REALLY JUST, IT'S NOT THERE TO, TO BE UTILIZED IN THE FUTURE.
AND SO WE HAVE A, A BIT OF A CONUNDRUM IN FRONT OF US, RIGHT? BECAUSE WE DO HAVE A, A, AN EXPENSE BUILT INTO, UH, THE CITY.
AND WHEN I LOOK AT THE FORMULA, WE LOOK AT, NO, YOU'RE, YOU'RE FINE.
IF I MOVE DOWN THE FORMULA INTO OPERATIONS, THIS IS WHAT OPERATIONS, THIS IS JUST OPERATIONAL COST
[02:05:01]
FROM 2020, UH, OR EXCUSE ME, THE ACTUALS FROM 2021 INTO 2025.THE CAVEAT THAT I'M ASKING YOU TO LOOK AT THIS WITH IS 2025 IS A BUDGET NUMBER.
SO THAT BLUE THAT IS HIGHER THAN EVERYTHING ELSE IS A BUDGET NUMBER.
OKAY? AND BECAUSE IT'S A BUDGET NUMBER, IT'S AUTOMATICALLY GONNA BE HIGHER THAN THE ACTUALS FROM THE PREVIOUS YEAR.
SO TAKE THE BUDGET NUMBER WITH A GRAIN OF SALT, BECAUSE IT WILL BE LOWER ONCE THE ACTUAL IS THERE, OR ONCE THE ACTUAL, ONCE WE FINISH THIS YEAR.
SO THERE ARE A FEW THINGS TO LOOK AT WHEN IT COMES TO, WHEN IT COMES TO THIS.
AND YOU MAY SAY, HEY, WHAT IN THE WORLD IS GOING? THE FIRST THING THAT YOU NEED TO UNDERSTAND IS THIS IS JUST OPERATIONAL COST.
THIS IS JUST OPERATIONAL COST.
THIS IS WHAT IT COSTS TO RUN THE OPERATIONS IN THE DEPARTMENT.
WHAT I TOLD YOU WITH POLICE AND FIRE, IT'S LESS THAN 3 MILLION TO RUN BOTH POLICE AND FIRE ON ACTUAL OPERATIONS.
OKAY? YOU'LL SEE ON THE NEXT SLIDE, ALMOST ALL OF THEIR COSTS OF JUST PERSONNEL COSTS.
YOU'LL THEN SAY, HEY, WHAT'S UP? PUBLIC WORKS.
WHAT'S GOING ON? RIGHT? INFRASTRUCTURE, IT'S INFRASTRUCTURE, IT'S PROGRAMS THAT WERE PUT IN PLACE BY COUNCIL.
I, I BELIEVE, LIKE THE SIDEWALK PROGRAM WAS ADDED IN 23 OR SOME PROGRAM WAS ADDED IN 23.
THE BIG JUMP FOR FY 25 THAT YOU SEE IN THE BLUE, THAT'S BECAUSE WE, WHEN WE TALKED ABOUT ADOPTING THE FY 25 BUDGET, IF Y'ALL REMEMBER THE, UH, CIP PERSONNEL WERE PAID FOR IN DEBT, WE DID NOT AGREE WITH HOW THAT FINANCIALLY WAS SET UP.
SO WE MOVED THAT COST INTO AN ACTUAL OPERATING COST.
THAT IS WHAT THAT BIG JUMP IS FOR FY 25.
THAT IS SOMETHING THAT HAS ALWAYS BEEN THERE, BUT IT WAS BEING PAID FOR IN DEBT.
AND WE DID NOT BELIEVE THAT OPERATING THROUGH DEBT WAS THE BEST WAY TO HAVE THAT, UH, OPERATING BECAUSE WE DIDN'T KNOW WHAT THE GO WAS GONNA LOOK LIKE, AND WE DIDN'T KNOW WHAT THE FUTURE WOULD LOOK LIKE WITH KEEPING THOSE PERSONNEL.
AND SO WE MOVED IT INTO THE GENERAL FUND.
EVERY, EVERY JUMP ON HERE CAN BE EXPLAINED, OKAY? ITS, THIS IS JUST BECAUSE KEVIN LIKES EQUIPMENT AND HE KEEPS BUYING STUFF
I THINK THIS ONE'S VERY SELF-EXPLANATORY.
THERE ARE MANDATES THAT, THAT COME UP THAT WE HAVE TO ADDRESS.
AND THIS IS JUST KEEPING UP WITH THE DIGITAL, THE DIGITAL FOOTPRINT OR FINGERPRINT THAT WE HAVE, UM, AND MAKING SURE WE'RE SUPPORTING OUR OPERATIONS.
I WILL TELL YOU, YOU HAVE A VERY GOOD DIRECTOR OVER THERE THAT KEEPS US AS TIGHT AS POSSIBLE.
YOU'RE LIKE, WHAT'S GOING ON IN FINANCE? WHY IS IT GROWING SO MUCH? THAT'S CENTRALIZING ALL, ALL THE, UH, OPERATIONS.
SO THOSE COSTS WERE MOVED FROM OTHER DEPARTMENTS INTO FINANCE, OKAY? AND SO WE WILL SEE SAVINGS THERE AS WE CONTINUE TO STANDARDIZE OUR CONTRACTS, REDUCE OUR CONTRACTS, THE JANITORIAL, THE BOEING THAT WE TALKED ABOUT.
YOU WILL SEE A REDUCTION HERE BECAUSE THE POINT IS TO TRY TO FIND WAYS THAT THIS CAN BE, UH, STREAMLINED AND HAVE A, A, A BETTER EFFICIENT OPERATION.
SOME OF THIS, I, I DON'T HAVE GREAT TALKING POINTS FOR YOU AND WHAT HAPPENED IN 23, UM, UH, WE'LL HAVE TO COME BACK TO YOU, BUT THAT'S JUST A GLIMPSE OF WHAT THE OPERATIONAL ASPECTS LOOK LIKE.
UM, THEY'RE ALL RELATIVELY FLAT.
THERE'S NOT, THERE'S NOT A LOT OF DIFFERENT JUST FLUFF IN THE OPERATIONS WHEN YOU LOOK AT IT.
THE NEXT ONE MIGHT BE A LITTLE SHOCKING.
THE ONLY GROWTH THAT YOU REALLY SEE ON THERE ARE THE COLA GROWTHS THAT ARE, THAT THEY LOOK PRETTY STANDARDIZED THROUGHOUT.
YOU WILL SEE A BUMP HERE IN POLICE FY 23.
THIS IS WHEN YOU MOVE CCPD FROM, UH, THE PERSONNEL WENT FROM CCPD INTO POLICE, UH, INTO POLICE'S BUDGET.
UM, FIRE, I BELIEVE THIS HAS TO DO WITH, I DON'T FULLY REMEMBER THE FY 23 JUMP, BUT I WANNA SAY BOTH POLICE AND FIRE.
YOU HAVE LARGE JUMPS BECAUSE THEY HAD LARGE VACANCIES IN THEIR OPERATIONS.
AND THE, UH, THE RECRUITMENT HAS INCREASED DRAMATICALLY WHERE WE ARE IN LOW PERCENTAGES OF VACANCY RATES WITH BOTH POLICE AND FIRE.
AND THAT'S LED TO SOME OF THE INCREASES THAT YOU SEE ON THE PERSONNEL COSTS UP THERE.
UM, PUBLIC WORKS IS, LOOKS LIKE THE ONLY OUTLIER HERE.
THE OUTLIER THAT YOU HAVE IS AGAIN, THE MOVEMENT
[02:10:01]
OF CIP PERSONNEL FROM THE DEBT ISSUANCE INTO GENERAL FUND OPERATIONS.THAT'S WHAT THAT, THAT DRAMATIC CHANGE IS ON THE PERSONNEL COST.
IS THIS, THIS IS JUST, UH, FULL-TIME.
THIS IS JUST EMPLOYEES SITTING FULL-TIME EMPLOYEES.
WELL, I, IT'S, WELL, THE ONLY I'M ASKING, IT'S THE ONLY BIG, LIKE PERSONNEL CHANGE I CAN THINK OF THAT WAS RECENT, WAS LIKE THE, UH, WATER PARK BECOMING CONTRACTED.
SO, I MEAN, BUT I GUESS I WOULD, BUT THAT WAS OUT OF AQUAS.
SO MY QUESTION IS THIS, WHEN WE HAD THE VACANCIES, I WOULD ASSUME THAT MORE WOULD'VE BEEN SPENT IN POLICE AND FIRE WITH OVERTIME, AND NOW I WOULD'VE, SO THIS INCLUDES OVERTIME COST? YEAH, BUT THAT'S WHAT I'M SAYING.
I WOULD'VE EXPECTED SINCE POSITIONS WERE FILLED AND YOU NOT PAYING OVERTIME, THAT COSTS SHOULD HAVE DROPPED SOME.
SO RIGHT HERE IN THESE TWO YEAH, PERSONNEL WAS PAID OUTTA CCPD.
SO IT'S, IT'S NOT A APPLES TO APPLES COMPARED TO, OKAY, I GOT YOU.
SO THESE THREE YEARS ARE APPLES TO APPLES AT THIS POINT.
AND YOU CAN SEE THAT'S WHY THE, UH, I THINK IT'S A GRAY BAR IN THE MIDDLE OR LIKE BLUE, WHATEVER THIS IS.
THE OVERTIME, UH, PRESSURE THAT YOU SEE IN THE MIDDLE AND THE YELLOW, THAT'S OVERTIME.
SO YOU DIDN'T HAVE, YOU DIDN'T HAVE AS MUCH OVERTIME IN 2023.
I THOUGHT THEY WERE DEALING WITH VACANCIES FROM BEFORE.
THEY WERE, THEY DID HAVE VACANCIES THERE.
BUT I WILL TELL YOU, I THINK JOHN, WAS THAT YOUR FIRST YEAR? IT WAS, YEAH.
SO WE, JOHN WAS CRACKING A WHIP OVER THERE.
AND PART OF THOSE SAVINGS, UH, WITH OVERTIME WE WERE ABLE TO ABSORB, UH, WITH OUR PERSONNEL VACANCY SAVINGS.
AND I WAS JUST GONNA ADD TOO, WE DID MOVE COUPLE POSITIONS OUT OF FIRE CONTROL I THINK PROBABLY THREE YEARS AGO.
BUT I WOULD SAY ALSO WHEN WE DO HIRE, AT LEAST KNOW US.
IF THEY'RE NOT, THEY DON'T HAVE CERTAIN CERTIFICATIONS, WE HIRE THEM.
SO WE'RE PAYING THEM, THEY'RE STILL NOT OUT ON A TRUCK BECAUSE NOW WE GOTTA GO GET 'EM CERTIFIED, FIRE CERTIFIED, GET THEM THROUGH CREDENTIALING AND ALL THAT.
SO SOMETIMES NOW YOU'RE PAYING THEM SO YOU'RE NOT HAVING THAT SAVINGS AND THEY STILL CAN'T ALLOW TO FILL SEATS.
SO YOU STILL COVERED OVERTIME.
AND THEN IN 2023, WHERE YOU SEE JUMPS BY AND LARGE ALMOST ON ALL THE DEPARTMENTS, 2023 WAS, I WAS HIRED RIGHT AT THE TAIL END OF THE 23 ADOPTION OF THE BUDGET.
UM, AND AUGUST OF, OR JULY OR AUGUST OF, OF 22.
AND THAT'S WHEN I FIRST MET MR. LESTER, UM, ON Y'ALL, THE COUNCIL HAD ADOPTED 40 NEW POSITIONS FOR THAT BUDGET YEAR.
UM, AND THAT I, I STILL REMEMBER MIKE'S WORDS OR VOICE IN MY HEAD ON ADDING 40 POSITIONS.
AND THAT'S WHERE YOU COULD SEE SOME OF THAT INCREASE IN 23 FOR THE MAJORITY OF, OF, UH, ACROSS THE BOARD ANYWAYS.
YEAH, YOU COULD EVEN SEE AN ADMIN.
WELL, THAT, UH, THAT'S PAYING A PREVIOUS CITY MANAGER, UM, HIS GO AWAY CHECK.
SO THOSE 40 POSITIONS THAT WERE ADDED, HOW MANY OF 'EM ARE STILL HERE OUT OF THOSE 40? UH, OVER THE PAST TWO YEARS, WE'VE REDUCED THE POSITIONS BY 2025.
SO ABOUT HALF, A LITTLE OVER HALF 20 MAYBE.
12 LAST YEAR AND EIGHT THIS BUDGET.
SO THERE'S, OUT OF THIS 40, ONLY HALF LASTED A YEAR TO TWO YEARS, AND THEN THEY WERE BACK.
THEY JUST HAVEN'T BEEN FILLED.
WE ONLY DID 12 FOR THIS PART YEAR.
WE'RE PROPOSING EIGHT, RIGHT? THAT'D BE 20.
THAT'S WHAT I'M TALKING ABOUT.
THEY'RE NECESSARILY, THAT'S NOT 20 OF THOSE FOUR.
IT'S NOT 20 OF THOSE 40 ACROSS THE ORGANIZATION.
BUT MARY, YOUR QUESTION WAS, OUT OF THOSE 40, HOW, OUT OF THOSE 40, HOW MANY ARE STILL ACTIVE? I DUNNO THAT MAYOR, I DUNNO.
WE HAVE LIST, IF THEY WEREN'T NEEDED, WHAT KIND OF PRESSURE WITH THE NEW LATERAL PROGRAM THAT PUBLIC SAFETY, UM, HAS, WHERE, UM, AS A BENEFIT YOU'RE BRINGING IN PEOPLE AS A MODEL, SO THEY'RE NOT LIKE HAVING TRAINING RECOUP ALL THOSE TRAINING HOURS, ET CETERA.
HAS THAT SAVED ANY MONEY FOR US? BECAUSE I KNOW THAT WAS LIKE A BIG DEAL, UM, KIND OF LIKE, UM,
[02:15:01]
A SELLING POINT FOR FOLKS COMING IN THAT, HEY, I'M NOT GONNA HAVE TO START AT THE BARN FOR THE, FOR, FOR THE POLICE DEPARTMENT.THE PRIMARY BENEFIT OF THAT IS THE TIME THAT IT TAKES TO HIRE SOMEBODY TO ACTUALLY PUT THEM IN SERVICE ON THE ROAD AND GETTING THEM OUT.
UM, CONFER THE ASSOCIATION, NEGOTIATE WITH PREVIOUS ADMINISTRATION, UH, SIGN ON BONUSES AND CREDIT FOR LATER YEARS OF SERVICE.
UH, SO I WOULD SAY THAT AS FAR AS ANY COST SAVINGS ON PERSONNEL, UH, NO, BUT IT, IT PUT US IN A POSITION TO BE ABLE TO FILL THOSE VACANCIES QUALIFIED APPLICANTS THAT WE DID NOT HAVE TO INVEST IN THE TRAINING AND THEIR EDUCATION, AND TO BE ABLE TO PUT THEM IN SERVICE SOONER SO THAT WE COULD, AGAIN, BE SERVING THE COMMUNITY, BE OUT IN OUR NEIGHBORHOODS, IN OUR SHOPPING ON THE STREETS.
THESE ARE ACTUAL DATA POINTS OF REVENUE COLLECTED.
SO YOU CAN SEE TOTAL REVENUE THAT'S BEEN COLLECTED.
WHERE THIS IS IMPORTANT TO LOOK AT IS THIS IS REVENUE THAT'S BEEN COLLECTED, UM, THROUGH PROPERTY TAX, THROUGH WHATEVER THE CASE MAY BE.
AND THEN THIS IS THE TRANSFER LINE THAT WE SAW ON THE PREVIOUS GRAPH BEFORE.
SO YOU CAN SEE THE TRANSFERS, UM, FROM INTERNAL PIECES TO MEET THE OVERALL REVENUE PIECES FOR THE ORGANIZATION.
YOU CAN ALSO SEE WHERE THE PERCENTAGES COME FROM FOR THE, UH, GROWTH OF THE PROPERTY TAXES, UM, AND WHAT THAT LOOKS LIKE YEAR OVER YEAR.
NOW, DOWN HERE AT THE BOTTOM ON TOTAL EXPENSES, IT'S A LITTLE MISLEADING, RIGHT? AND THIS IS WHERE WE HAVE TO BE CAREFUL AND BE VERY OPEN WITH THE CONVERSATIONS BECAUSE IT LOOKS LIKE WHAT IN THE WORLD IS GOING ON WITH A JUMP FROM ONE 11 TO 1 35.
SO IN 2023, YOU ALSO, OR 2022, YOU TRANSFERRED ALMOST $18 MILLION FROM RESERVES TO GO TO THE CIP POND.
SO THAT'S CALCULATED IN THERE.
YOU REPEATED THAT IN 20, IN 2023.
SO WE TRANSFERRED OUT 26,000,001 YEAR.
WE TRANSFERRED OUT 27 MILLION THE NEXT YEAR, UH, TO REDUCE THE OVERALL DEBT ISSUANCES THAT WERE GOING TO, THAT WERE GOING TO BE, UH, OR TO REDUCE THE DEBT ISSUANCES.
AND SO THAT ELEVATED SOME OF THE OVERALL BUDGET EXPENSES.
WHAT'S IMPORTANT TO LOOK AT IS ACTUAL THE OPERATING EXPENSES.
AND YOU CAN SEE WHAT THE OPERATING EXPENSES LOOK LIKE YEAR OVER YEAR OVER YEAR.
AND SO THEN YOU'LL ASK YOURSELF, WHY THE BIG JUMP IN OPERATING EXPENSES FROM 1 0 6 TO ONE 20 FROM FY 22 TO FY 23? THAT'S PERSONNEL.
THAT'S THE CCPD, THAT'S THE FIRE CONTROL THAT CAME IN.
UM, THE PERSONNEL THAT CAME IN, YOU ALSO HAD LARGE VACANCIES THAT WERE FILLED IN FY 23, UM, AND YOU HAD 40 POSITIONS THAT WERE ADDED FROM 22 TO 23.
AND SO IT WAS A, A VERY SIGNIFICANT JUMP IN THE PERSONNEL COST.
AND THEN YOU LOOK AT WHAT THE OVERALL END WAS FOR, UH, 24 AT 1 27, AND THEN YOU LOOK AT, HERE'S WHAT THE BUDGET WAS ADOPTED FOR FY 25, THE OVERALL OPERATING BUDGET FOR FY 25 WAS 1 36, WHICH TO THE PEOPLE THAT ARE ASKING, ARE YOU, ARE YOU MAKING MORE THAN YOU SPEND? SO THE BUDGETED AMOUNT FOR OPERATING EXPENSES WAS 1 38 FOR REVENUE.
AND THE TOTAL OPERATING EXPENSE THAT WAS ADOPTED WAS 1 36.
SO WE WERE MAKING MORE THAN WE WERE SPENDING.
UM, AND RIGHT NOW YOU WILL SEE THAT WE'VE COLLECTED 84% OR 83% OF ALL OF OUR REVENUE.
AND FOR THOSE THAT DON'T KNOW, ALMOST ALL OF OUR REVENUE, OVER 80% OF OUR REVENUE IS COLLECTED BY JANUARY.
SO JANUARY, ALMOST ALL OF OUR REVENUE FOR THE ENTIRE YEAR IS COLLECTED, AND WE BASICALLY RUN ON THE RESERVE CASH COME OCTOBER
THAT'S WHY THE RESERVES IS VERY IMPORTANT.
YOU, YOU RUN ON ALMOST RESERVE CASH THROUGH OCTOBER THROUGH, UH, DECEMBER.
AND OUR EXPENSES RIGHT NOW ARE AT 47%.
I WOULD ARGUE THAT IT'S ROUGHLY AT 49%, UH, BECAUSE THIS DOES, THE INCOME STATEMENTS DO NOT ACCOUNT FOR ENCUMBERED MONEY.
SO MONEY THAT IS ALREADY IN CONTRACT THAT IS GONNA BE SPENT, IT DOESN'T ACCOUNT FOR THAT.
THIS IS AFTER MONEY THAT'S GONE OUT THE DOOR.
SO THE POINT OF SHOWING THIS IS THAT AS WE'VE WORKED ON THE BUDGET THROUGHOUT THE YEAR, AND WE ARE AT 49% OF OUR EXPENSES, WE ARE SPENDING EXACTLY WHAT WE BUDGETED AT THIS POINT, RIGHT? WE ARE WHERE
[02:20:01]
WE NEED TO BE BECAUSE WE FEEL VERY CONFIDENT THAT WE GOT TO, UH, A VERY LEANN OPERATIONAL GOVERNMENT.NOW, UM, THE ISSUE IN FRONT OF US IS REALLY A REVENUE PROBLEM, RIGHT? IT'S, YOU KNOW, ANYBODY CAN MAKE THE ARGUMENT IT'S AN EXPENSE PROBLEM.
WELL, THE EXPENSES ARE WHAT WAS SET PREVIOUSLY AND WE'VE BEEN OPERATING ON THAT.
WE HAVE BEEN ALSO REDUCING THAT.
WE HAVE A REVENUE ISSUE IN FRONT OF US AT THIS POINT.
AND I'M GONNA STOP AND GO TO SOME QUESTIONS.
YES, BUT I'M GONNA, WE DON'T NEED TO SHOW THE QUESTIONS UP HERE.
I HAVE DIFFERENT QUESTIONS THAT I'M GONNA ASK.
UM, YEAH, LET'S PAUSE FROM HERE AND I'M GONNA GO TO WATER SUIT REAL QUICK, IF YOU DON'T MIND.
I HAVE NOTHING FOR YOU TO LOOK AT BECAUSE THIS WAS FRANK AND THERESA JUST THOUGHT I COULD HAVE SOMETHING EXTRA TO TALK ABOUT.
UM, AS OF YESTERDAY, UM, FILL THE VOID, UH, FILL THE VOID.
NO, IN, IN ALL SERIOUSNESS, UM, WE WERE WORKING ON OUR WATER SEWER DEBT, UM, UH, DEBT ISSUANCE FOR THE BA EAST EXPANSION.
AND IN THAT, IN THE MEANTIME OF WORKING ON THAT DEBT ISSUANCE, UH, FRANK HAS BEEN WORKING WITH THE CITY OF HOUSTON TO DO A CONTRACT RENEGOTIATION.
RIGHT? I THINK WE HAD TO EXTEND OUR CONTRACT TO MEET OUR DEBT ISSUANCE CAPACITY, UH, TO MAKE SURE THAT BOTH OF 'EM ALIGNED.
AM AM I SAYING THAT CORRECTLY? THAT'S CORRECT.
UM, BUT YOU'RE GONNA TALK ABOUT THE TERMS OF THE CONTRACT.
I'M NOT GONNA TALK ABOUT THE TERMS OF THE CONTRACT RIGHT NOW.
THOSE, THOSE ARE MY FINAL LINES.
SO PART OF THE NUANCE, AND THIS IS JUST TO GIVE Y'ALL A HEADS UP, OKAY? IT'S TO GIVE YOU A HEADS UP FOR FURTHER DECISION MAKING PROCESS.
THAT'S, WE MOVE DOWN THE NUANCE OF THE CONTRACT IS A TAKE OR PAY SCENARIO WITH THE CITY OF HOUSTON, WHICH WE'VE ALWAYS BEEN TRYING TO AVOID.
AND FRANK IS STILL TRYING TO AVOID THAT.
RIGHT? IS THAT THE PROPER TERM TAKE OR PAY? IT IS, BUT I HAVE, YEAH, THERE'S A LOT OF, THERE'S A LOT THERE, RIGHT? THE BOTTOM LINE THAT CAME FROM THE FINANCIAL ADVISOR IS THAT WITH THE NEW TERMS OF THE POSSIBLE CONTRACT, THAT WE HAVE TO HAVE A DEBT COVENANT FOR THE BA EAST EXPANSION OF ROUGHLY $3 MILLION.
THERE ARE SEVERAL WAYS TO GET THERE, BUT $3 MILLION FOR A DEBT COVENANT MEANS THAT YOU HAVE TO HAVE $3 MILLION.
IT IS PUT INTO A SAVINGS ACCOUNT AND IT CANNOT BE TOUCHED.
OKAY? AND THE WAY TO GET THERE IS UTILITY RATES, THE GENERAL FUND SUBSIDIZING, OR THE WATER AND SEWER RESERVE.
THOSE ARE JUST THREE SIMPLE WAYS TO GET THERE.
THEY ARE WORKING THROUGH ALL THE CALCULATIONS RIGHT NOW.
UM, BUT KNOW THAT'S, THAT'S ON THE TABLE BY AND LARGE, IT WOULD, IT WOULD LOOK AS IF WATER AND SEWER RESERVES NEEDS TO, WE NEED TO TAP INTO THE RESERVES TO DO THAT.
I THINK THE WATER RATE INCREASES WOULD NOT BE SOMETHING THAT THE COUNCIL WOULD WANT TO LOOK AT RIGHT NOW FOR THE UTILITY RATES, UM, BECAUSE THAT DOES NOT EVEN FACTOR INTO JUST NORMAL UTILITY RATE INCREASES THAT WE HAVE TO GO.
AND IT DOESN'T FACTOR INTO THE SS SSO UH, CALCULATIONS THAT HAVE TO BE ADDRESSED.
THIS IS IN ADDITION TO, SO I, I, I THINK THE BEST OPTION AT THIS POINT IS GOING TO USE WATER TO RESERVES.
BUT FRANK AND, AND TERESA ARE WORKING ALL THAT OUT, AND WE WILL BRING THAT TO YOU, UM, IN THE FUTURE AS WE START OUR BUDGET CONVERSATIONS.
BUT I NEED TO BRING THAT TO YOUR AWARENESS NOW SO THAT WE CAN, YOU CAN HAVE ALL THE DATA NECESSARY TO GIVE PRELIMINARY DIRECTION ON HOW TO BUILD THE FY 26 BUDGET.
HOW MUCH DO WE HAVE IN WATER SEWER RESERVE? GOOD QUESTION THERE.
UH, I CAN'T, I DON'T, BUT I SAY WHAT HAS, CAN WE FIND OUT WHAT HAS BEEN USED FOR BEFORE? ARE YOU LOOKING AT BAWA OR WATER? SEWER? UH, I WAS LOOKING AT, YES.
SO WATER, SEWER, THE BUDGETED ENDING WORKING CAPITAL IS 9.4 MILLION.
[02:25:01]
AND BWA IS 14 MILLION.I GUESS THE QUESTION OUT OF THAT WILL BE RESERVE SOLUTION THAT BE SUSTAIN.
GUESS THAT'S SOMETHING YOU'LL HAVE TO DECIDE AS YOU MOVE FORWARD, RIGHT? THAT'S THE MOST SUSTAINABLE SOLUTION.
BUT THIS IS A ONE TIME WHAT SOUNDS LIKE, RIGHT? IT ONE TIME IT'S, IT'S A ONE TIME 3 MILLION THAT HAS TO BE DEPOSITED INTO THE COVENANT.
UM, BE, UH, THE DEBT COVENANT FOR, IS IT A 20 YEAR TERM OR 30 YEAR TERM, OR IS THIS ONE WELL, I JUST WANTED TO POINT OUT THAT THIS CONVERSATION IS ABOUT A, THAT IS FOR A BALL.
RIGHT? SO IF BALL RAISE, GREAT, THAT MEANS THE CITY WILL HAVE TO TAKE ON THOSE SAME RATES.
YOU'RE EITHER GONNA, UM, TAKE ON THE LOAD OF PAYING FOR THOSE RATES OR WE, AND HISTORICALLY WE'VE ABSORBED, RIGHT? MM-HMM
THE, THE CONCEPT IS STILL THE SAME.
LIKE, THERE ARE A LOT OF NUANCES THAT GO INTO THIS.
THIS IS, UM, WE WERE NOT PREPARED TO TALK ABOUT THIS.
THIS IS JUST GIVE YOU AWARENESS.
THIS WAS SUCH A LATE, THIS WAS LIKE A YESTERDAY AFTERNOON THING FOR ME.
I KNOW FRANK AND THEM, FRANK AND THERESA HAVE BEEN WORKING SINCE FRIDAY, BUT THIS WAS A YESTERDAY, YESTERDAY AFTERNOON THING FOR ME, MY INTENTION IS TO JUST BRING AWARENESS FOR YOU BECAUSE THERE ARE DECISION POINTS THAT YOU NEED TO MAKE, UM, WITH THE TAX RATE.
AND YOU JUST NEED TO KNOW EVERYTHING THAT YOU NEED TO KNOW TO MAKE THE BEST DECISION THAT YOU CAN.
I, I DON'T WANT TO HAVE YOU MAKE A DECISION AND THEN COME BACK NEXT WEEK AND BE LIKE, HEY, GUESS WHAT? YOU ALSO NEED TO FIND $3 MILLION, WHICH I DON'T KNOW IF WE NEED TO.
IT'S JUST, IT, IT'S, IT'S WORKING RIGHT NOW.
IT'S A WORKING UNDERSTANDING THAT THERE COULD BE THE POSSIBILITY THAT WE ABSORBED THE COST FOR BALL.
WELL, THANK YOU FOR LETTING US KNOW TODAY.
SO, UM, WITH THAT SAID, UM, WE'LL TALK ABOUT ACTUAL DIRECTION ON THE TAX RATE.
I THINK WE'RE COMING TO AN END HERE.
BUT, UH, YOU'VE SEEN YOU'VE SEEN A FIVE YEAR TREND, UH, ON OUR REVENUE, OUR, OUR PERSONNEL COSTS AND, UM, OUR, OUR INCOME AND EXPENSES AND THE GAP THAT MAY OR MAY NOT BE THERE.
UM, YOU'VE ALSO SEEN THAT WE ARE RELYING ON OTHER FUNDS, UH, TO HELP US MANAGE, UM, OUR CURRENT, UH, BUDGET SITUATION.
AND THE FIRST QUESTION THAT I WOULD ASK YOU IS, UM, WHAT, UM, ARE YOUR KEY TAKEAWAYS OR WHAT QUESTIONS DO YOU HAVE ON THE TRENDS? AND IT'S NOT GONNA BE ON THE BOARD.
I JUST, THESE ARE DIFFERENT QUESTIONS.
I'D BE INTERESTED IN TO KNOW, UM, SOME OF THE CHANGES WE MADE LAST YEAR TO TRY TO MINIMIZE THE TRANSFERS.
AND NOW WE'RE HALFWAY THROUGH FISHER'S BUDGET.
LIKE HOW, HOW ARE WE LOOKING ON THOSE CHANGE LIKE SANITATION, YOU KNOW, LOOKING LIKE WE CLOSER TO BREAK EVEN THERE WITH THE, UH, THE CHANGES TO THE GREEN CENTER FEES AND THE, UH, THE ADDITIONAL FOR BRUSH PICKUP.
UM, THAT'S PROBABLY HARDER TO LOOK AT.
AQUATIC OF THIS BEING RIGHT HERE.
I WE'RE HALFWAY THROUGH THE BUDGET, BUT THERE SUMMER, SO ON THAT, BUT AS MUCH AS WE CAN, YOU KNOW, HOW, HOW ARE THOSE CHANGES PLAYING OUT? OKAY.
CREDIT CARD FEES AND EVERYTHING ELSE THAT WE, ARE THERE ANY TAKEAWAYS FROM THE DATA AT ALL? I WOULD NEED TO LOOK AT IT A LITTLE BIT MORE TO BE HONEST WITH YOU.
DO YOU NEED ME TO GO BACK AT ALL OR JUST CAN YOU SEND IT TO ME? I CAN SEND IT TO YOU.
I JUST, UM, I GUESS JUST HEARING YOU EXPLAIN IT AND TALKING ABOUT IT FOR 15, 20 MINUTES, I WANT TO TAKE A LOOK AT IT TO SEE WHAT QUESTIONS I WOULD HAVE.
I, THAT WAS A LOT OF INFORMATION.
[02:30:02]
THE, THE PIVOT POINT THAT WE'LL HAVE IN FRONT OF US MAYOR AT THIS POINT IS THAT I'M GONNA NEED DIRECTION ON HOW TO START, HOW TO KEEP PREPARING THE BUDGET.'CAUSE LIKE RIGHT NOW, THE DIRECTORS HAVE ALREADY TURNED IN THEIR BUDGETS FOR FY 26 MM-HMM
UM, AND THE, WE'RE SCHEDULED TO BE HERE TOMORROW ALREADY, RIGHT? THAT IS CORRECT.
SO I'M ASKING TO GET IT TO LOOK AT IT THROUGH TONIGHT.
UNDERSTAND, I MEAN, I'LL SEND IT TO ALL OF Y'ALL.
UM, WE, THE ULTIMATE, THE ULTIMATE ASK HERE JUST TO MAYBE IF THIS HELPS, OKAY.
THE ULTIMATE ASK HERE AT THE END OF THIS IS GONNA BE DIRECTION ON THE NO NEW REVENUE OR, UM, STAY AT NO NEW REVENUE OR MAYBE STAY WHERE WE ARE AT.
IF THAT HELPS ON WHERE WE'RE TRYING, WHERE I'M WORKING TO ON WITH THESE QUESTIONS AT THIS POINT.
UM, DOESN'T MEAN THAT I DON'T WANNA COME BACK TOMORROW, DOESN'T MEAN ANY OF THAT.
I'M JUST TRYING TO GIVE LIKE THAT'S WHAT WORKING TOWARDS.
UM, BUT HAPPY TO SEND ALL THIS TO EVERYBODY AND I'M NOT TRYING TO PUT ANYBODY ON THE SPOT.
IF WE DON'T FEEL COMFORTABLE, WE DON'T FEEL COMFORTABLE, WE CAN WORK THROUGH IT.
I'M JUST GIVING YOU THE CONTEXT FROM THE, HOW WE'VE SET THIS UP AND FOR THE CITIZENS AT HOME.
LIKE HOW IT'S SET UP IS LIKE WE START THIS WITH A RETREAT OR WITH GENERAL DIRECTION BASED ON PREVIOUS YEAR CONVERSATION.
THEN WE GO INTO THE JANUARY FEBRUARY RETREAT TO GET GENERAL DIRECTION.
THE, THE DIRECTORS BUILT THEIR BUDGET BASED ON THAT GENERAL DIRECTION FROM JANUARY OR FEB, FEBRUARY.
AND THEN WE KIND OF SOLIDIFY IF WE'RE STILL IN THE RIGHT REALM AT THIS SECONDARY RETREAT.
AND THEN THE DIRECTORS FINALIZE THE REST OF THEIR STUFF THROUGH APRIL AND EARLY MAY.
AND THEN WE START DEFINING, WE START ACTUALLY FINISHING THE BUDGET UP FOR COUNCIL PRESENTATION BY MID-MAY AT THIS POINT.
AND SO, UM, THAT WAY WE CAN START OUR CONVERSATION KICKS OFF KICKOFFS IN VERY EARLY JUNE WITH THE CITY COUNCIL.
JUST WORKING BACKWARDS SO EVERYBODY UNDERSTANDS THE FULL CONTEXT HERE.
UM, AND JUST WHERE IT WOULD POP INTO ANOTHER MEETING AT THIS POINT.
SO FROM WHAT WE COVERED TODAY, AND I KNOW EARLIER YOU MENTIONED THAT WE COULD EVENTUALLY JUST END TODAY, NOT ESTIMATE TOMORROW.
SO WHAT IS THEIR LEFT TO TALK ABOUT HER DIRECTION ON THE TAX RATE OKAY.
WHICH WE CAN DO TODAY MM-HMM
AND THEN NOT HAVE TO YES MA'AM.
SO, UM, FOR ME, BASED ON WHAT HAS HAPPENED IN YOUR PRIOR AND WHAT COULD HAVE HAPPENED WITH STATE LEGISLATION, AND I THINK, UH, COUNCIL MEMBER POWELL DID AN AMAZING SYNOPSIS WHEN WE WERE IN AUSTIN THAT, UM, WE ARE NOT ALLOWING THAT RATE REALLY, UH, DRIVE OUR TAX RATE AND WHEN IT COMES TO NO NEW REVENUE.
AND SO WE'RE NEVER GONNA CATCH UP IF WE CONTINUE TO STAY AT NO REVENUE.
UM, AND IT SEEMS LIKE WE'RE GONNA CONTINUE TO GO AND WHEN IT COMES TO THE STATE, AND SO I'M, I'M KIND OF NEED TO STAY WHERE WE'RE INSTEAD GOING BACK DOWN TO REVENUE MM-HMM
AND, BUT I, I WOULD LIKE TO, IT'S KIND OF HARD TO RIGHT NOW, UM, BECAUSE WE DON'T KNOW WHAT'S GONNA HAPPEN, RIGHT.
AND AS YOU MENTIONED EARLIER, WE, WE REALLY PREPARED FOR THIS POINT, RIGHT? AND WE'RE SITUATED JUST RIGHT.
AND SO IF WE DO STAY STANDING AND STAY WHERE WE'RE, INSTEAD OF GOING DOWN, YOU KNOW, REVENUE, I THINK IT WOULD, IT WOULD PUT US IN AN EVEN BETTER POSITION KNOWING THAT REALLY THE PROFESSOR IS GONNA BE VOTER APPROVAL RIGHT.
AND, UH, TO MAYOR TO YOUR QUESTION AND FOR THE REST OF Y'ALL AS WELL.
AND, AND PIGGYBACKING OFF, OFF THAT MS. ALVARADO, UM, IT'S VERY IMPORTANT TO NOTE THAT WHAT DIRECTION IS GIVEN TODAY IS NOT THE FINAL DIRECTION, RIGHT? RIGHT.
LIKE Y'ALL WILL STILL ULTIMATELY VOTE ON THE FINAL TAX RATE IF, IF THAT HELPS, LIKE MM-HMM
THIS IS A LOT TO CONSUME RIGHT NOW.
UM, BUT IF GENERAL DIRECTION IS TO CON CONTINUE WITH A OR B, THAT'S JUST GENERAL DIRECTION THAT WE, THAT WE WILL BUILD OFF OF.
UM, AND THEN YOU WILL HAVE THIS TONIGHT AND IF YOU NEED TO MAKE A DIFFERENT DECISION IN JUNE, YOU MAKE A DIFFERENT DECISION IN JUNE.
[02:35:01]
JUST TRYING TO SUMMARIZE ENOUGH AND AT A VERY HIGH LEVEL TO GET A, A GOOD UNDERSTANDING OF IF WE'RE ON THE RIGHT PATH OR NOT.AND, AND, AND I GUESS OVERALL, THE WAY I LOOK AT IT, WE WERE NOT ELECTED TO MAKE DECISIONS FOR THE STATE THEY WERE ELECTED TO DO.
WE'RE ELECTED TO MAKE DECISIONS BASED ON OUR CITY.
AND THAT'S WHY I'M LEANING TOWARDS STATE.
I DO RECOGNIZE THIS RESPECT FOR OUR CITY AT THIS MOMENT.
GO ON WHAT LAURA SAID, AND REMEMBER THE CAPITAL, I'D LIKE TO SEE NO NEW REVENUE CURRENT STAYING STAGNANT AND THEN BUILD IN AS WE, AS WE COACH OUR LEGISLATORS WHEN WE'RE THERE IS KIND LIKE BUILD IN THE, THE NO NEW REVENUE IS ACTUALLY WHATEVER THE PERCENTAGE OF INFLATION WAS.
'CAUSE THAT REALLY IS NO NEW REVENUE, RIGHT? KIND OF NO NEW REVENUE STAGNANT AT THE SAME TIME.
WELL, NO NEW REVENUE IS PROBABLY GONNA BE A REDUCTION.
THE SAME IS GONNA BE AN INCREASE.
BUT THEN IS THAT THE THREE OR 4% THAT WE'VE SEEN? SO YEAH, THE, I GUESS THE STATE BELOW THE NO NEW REVENUE, NO NEW REVENUE RATE WOULD MOST LIKELY BE 67 OR 68 CENTS.
THE VOTER APPROVAL RATE WOULD MOST LIKELY BE 72 TO 73 AND STAYING AT 70 CENTS WOULD MOST LIKELY FALL IN BETWEEN THOSE TWO.
I LIKE TO SEE WHAT THOSE NUMBERS ARE.
BECAUSE I CAN'T SEE US TAKING TO THE VOTERS, 'CAUSE THEY'RE VOTED DOWN OF COURSE, BUT IF WE CAN STAY IN SOMEWHERE IN THAT MIDDLE, 'CAUSE THAT ABSORBS SOME OF THAT INFLATION RATE THAT WE'RE HAVING TO DEAL WITH.
SO EVEN WITH PROFIT TAXES GOING UP, WE STILL, THERE'S A GAP THERE THAT WE'RE NOT GETTING BACK.
SO EVERY YEAR IT'S ACTUALLY THEY'RE GETTING LESS THAN THE NEW REVENUE, OUR EXPENDITURE COSTS.
SO I THINK THAT'S GONNA MAKE A BIG DIFFERENCE.
SO YOUR DIRECT QUESTION WAS YOU WANTED TO KNOW, WE WANTED TO EITHER STAY AT NO NEW REVENUE OR STAY STAGNANT.
THE, THE INPUT I'M RECEIVING RIGHT NOW IS THERE'S A MIX OF STAYING STAGNANT, BUT AT THE SAME TIME, BEFORE MAKING A FINAL DECISION AT THE BUDGET ADOPTION, I WOULD LIKE TO SEE WHAT NO NEW REVENUE RATE LOOKS LIKE.
VOTER APPROVAL RATE AND STAYING IN THE MIDDLE.
YEAH, THAT'S WHAT I'M HEARING.
SO IT SOUNDS LIKE WE WANT TO SEE SO FAR EVERYONE'S ASKING FOR IT ALL, ALL OPTIONS.
WE WON'T SEE THE NO REVENUE RATE UNTIL THE VOTE COMES THROUGH AT THE STATE LEVEL.
AND THAT COULD BE AROUND THE END OF MAY TIMEFRAME.
UH, JULY FOR THE ACTUAL TAX RATE, JULY IS THE EXTENT.
UM, I MEAN, LIKE I SAID EARLIER, I KNOW THAT THIS IS UNSUSTAINABLE.
UM, BUT I THINK FOR THIS YEAR WE NEED TO BE AT NO NEW REVENUE BECAUSE OF THE GO BOND.
I THINK IF WE GO ANYTHING ABOVE NO NEW REVENUE, IT HAS NO CHANCE OF PASSING.
NOW THAT'S GONNA BE A RISK QUESTION IS HOW DOES THIS EXPENSE RAISE TO RAISE TAXES, TO RAISE TAXES ON OUR OWN AND THEN GO OUT AND ASK FOR ADDITIONAL FUNDING FOR DEBT? IT'S, IT'S, UH, IT'S GONNA BE ENOUGH, BUT IF WE DO THAT, WE MAY FALL SHORT EVEN NOT GOING FOR THE CATCH 22.
AND LET'S SAY IT DOESN'T PASS AND WE DON'T RAISE IT AND WE FALL SHORT, WHAT ARE WE DOING? MM-HMM
WE'RE IN A BAD SITUATION AT THAT POINT THEN I MEAN, IT, IT'S A VALID POINT THAT MR. POWELL BRINGS UP, BUT, UM, I CAN SEE IT WORKING BOTH WAYS, SO MM-HMM
AND THAT WOULD ALL BE PART OF THE WHOLE EDUCATION FOR OUR, WE WOULD HAVE TO GEAR IT INTO THE EDUCATION BECAUSE WE WILL ADOPT THE TAX RATE, THE FIRST PORTION OF IT, PROBABLY IN LATE AUGUST AND THEN OFFICIALLY ADOPTED IN SEPTEMBER.
AND SO YOU WOULD'VE TWO FULL MONTHS BEFORE THE ELECTION IN NOVEMBER OF EITHER PEOPLE UNDERSTANDING WHY WE HAD TO DO IT OR ACCEPTING LIKE, HEY, GOOD CHOICE ON THE NO NEW REVENUE.
LIKE THAT'S WHAT YOU WOULD HAVE TO, THOSE ARE THE OPTIONS THAT YOU WOULD HAVE TO EDUCATE PEOPLE ON, ON WHAT'S HAPPENING BECAUSE THERE WOULD BE A GAP BETWEEN ADOPTION AND THE ACTUAL BOAT.
BUT THE OPTICS OF, WE'VE ALREADY SAID EDUCATION IS GONNA BE A BIG ASPECT OF THE GEO BOND.
WE'RE JUST ADDING, I MEAN, IF WE GO ANYWHERE OVER NO NEW REVENUE, YOU'RE ADDING MORE COMPLEXITY, MORE THINGS THAT YOU'RE SAYING WE'RE TRYING TO EXPLAIN TO EVERYONE.
IF YOU GO INTO IT SAYING, WE MAINTAIN NO NEW REVENUE BECAUSE WE'RE, YOU KNOW, PUTTING THIS BOND OUT THERE TO FUND INFRASTRUCTURE, YOU'RE NOT HAVING TO EDUCATE ON THE ENTIRE VOTER APPROVAL RATES AND THINGS OF THAT NATURE.
[02:40:01]
I JUST THINK IT, IT'S, TAKE THAT PART OUT OF THE EQUATION, STICK WITH NO NEW REVENUE, GET THROUGH THE GO BOND, AND IF WE WANT TO GO ABOVE OR EVEN DEVOTE OUR APPROVAL IN THE FUTURE, THEN YOU DO IT WHEN THAT'S THE ONLY THING ON THE, ON THE BALLOT TO KEEP THEM SEPARATE.WHAT WOULD WE FALL SHORT AT IF WE DID LOAN REVENUE? I DON'T KNOW YET, MAYOR.
I WOULD SAY THAT WE WOULD MOST LIKELY GROW BY, AT A, AT A MOST OF NO NEW REVENUE AT A MOST PROBABLY 3 MILLION, MAYBE THREE AND A HALF MILLION.
UM, AND SO THE DEPARTMENTS ARE ALREADY BUILDING A FLAT BUDGET.
UM, WHAT'S GONNA COME INTO PLAY IS, IS COLA FOR THE EMPLOYEES.
AND SO IF YOU HAVE A FLAT BUDGET, IF YOU HAVE A FLAT BUDGET THROUGHOUT, AND WE HAVE THE REDUCTION IN THE 3.2 TO $4 MILLION AT THE MOST, YOU COULD DO A THREE TO 4% COLA FOR THE EMPLOYEES AT THE MOST BASED ON THOSE SCENARIOS BECAUSE YOU WOULD HAVE A BIT OF A A DELTA AND THERE ARE GONNA BE, EVEN WITH THE FLAT BUDGET, THERE ARE GONNA BE THINGS THAT HAVE TO, UM, HAVE TO BE ADDRESSED LIKE THE POSSIBLE MOWING.
UM, OFF THE TOP OF MY HEAD THAT'S JUST OFF TRYING TO LIKE RUN THROUGH NUMBERS OFF THE TOP OF MY HEAD AND THE NUMBERS I'M SAYING, I KNOW FOR THE PEOPLE LISTENING ARE GONNA BE, HEY, THAT'S THREE MINUS AND, AND FOUR ON, AND IT'S GONNA SOUND LIKE THERE'S A NET POSITIVE IN THERE.
I'M JUST RUNNING OUTTA THE SCENARIOS IN MY HEAD.
I JUST THINK THAT YOU'RE, YOU'RE GONNA HAVE EVERY PERCENT INCREASE IN COLA IS $1 MILLION.
SO IF YOU DO A 3% COLA INCREASE FOR THE EMPLOYEES, THAT'S 3 MILLION THAT YOU'RE GONNA ADD TO THE BUDGET.
SO THE 3 MILLION COLA WOULD BE ABSORBED BY ANY NEW GROWTH OF THE REVENUE.
UM, SO THAT WOULDN'T LEAVE ROOM FOR ANYTHING ELSE.
SO YOUR, YOUR YOUR NOMINAL GAP THERE WOULD BE THE 3 MILLION, THREE AND A HALF MILLION THAT YOU SAVED AND THE THREE TO THREE AND A HALF MILLION SAVED IS, IS, IS HONESTLY IT'S, IT, IT'S A, IT'S A SMALLER AMOUNT FOR, FOR THE BUDGET AT THIS POINT.
NOW YOU'RE SAYING YOU'RE NOT PLANNING FOR THE FUTURE TO, TO SPREAD THAT GAP ANY FURTHER.
AND THE BIGGEST, THE, UM, BIGGEST PERSONNEL CALLS COME FROM POLICE AND FIRE, UM, PUBLIC WORKS.
ALL PERSONNEL COSTS ARE, ARE, ARE THE DRIVING FACTOR IN THE BUDGET.
WHEN YOU LOOK AT THE PERSONNEL COST AND YOU BREAK IT DOWN OF THE 102 MILLION OF PERSONNEL COST, I BELIEVE 67 MILLION OF THAT IS POLICE AND FIRE.
I MEAN, WE COULD END UP PLEASANTLY SURPRISED THAT THEY LISTENED TO THE MANY CITIES THAT WENT AND TALKED TO THEM AND SAID, OKAY, WE'LL TAKE IT.
I LOVE THE OPTIMISM TAX RATES.
I, I WOULD REALLY LIKE TO SEE US BE ABLE TO GIVE THOSE RAISES AND STILL HAVE A LITTLE ROOM, A LITTLE WIGGLE ROOM TO BE HONEST WITH YOU.
UM, ANYTHING CAN HAPPEN TO WHERE A ROCK COULD BE TURNED OVER, ALTHOUGH WE'VE ASKED TO NOT TURN OVER ANY MORE ROCKS, PEOPLE TURN OVER ROCK
HAVING THAT CUSHION IS NOT NECESSARILY A BAD THING.
IT'S, IT'S HELPFUL AS LARGE OF A CITY THAT WE HAVE AND AS LARGE OF A BUDGET THAT WE HAVE.
HAVING ANY KIND OF CUSHION IS EXTREMELY HELPFUL BECAUSE REMEMBER THERE ANY, ANY EXTRA NEEDS TO GO TOWARDS CAPITAL EXPENSES, WE HAVEN'T EVEN TALKED ABOUT CAPITAL EXPENSES.
SO LIKE THE OTHER 3 MILLION THAT YOU WOULD BE SAVING WOULD BE GOING TO CAPITAL STUFF AND THAT'S THE EQUIPMENT THAT THE EMPLOYEES NEED TO OPERATE TO DO WORK IN THE CITY OR JUST PAYING, PAYING DOWN DEBT PIECES THAT AREN'T BEING, UM, THAT WE'RE USING CASH INSTEAD OF GOING UP FOR DEBT.
AND THAT'S THE ONLY WAY TO DO THAT.
SO, UM, I WILL CUT TO THE CHASE I GUESS AND JUST ASK WHERE Y'ALL WOULD LIKE ME TO BUILD THE TAX RATE FOR THE FY 26 BUDGET AFTER HEARING THIS.
I'M, I'M, I'M ACTUALLY GONNA LEAN ABOVE THE NO NEW REVENUE.
[02:45:04]
OKAY, MR. LESSER.I'M, YEAH, I'M GONNA BE, LET'S STAY AT 70 CENTS.
I MEAN, BECAUSE FLAT GROWTH ON A, ON ADMISSIBLE BUDGET MEANS YOU DO LESS THAN YOU DID BEFORE MONEY BECAUSE THINGS COST MORE, UH, WITHOUT DOESN MEAN FOR INFLATION AND WE JUST, THERE WOULD BE NO MONIES.
SO WE HAVE STAFF, BUT THEY DON'T HAVE TO GO DO ANYTHING.
I MEAN THAT, THAT IT, AND THAT'S KIND OF WHERE WE PUT OURSELVES STRUGGLING WITH THAT.
SO YEAH, I'D HAVE TO SAY WHERE IT IS.
MRS. GRAHAM? WORDS RIGHT OUTTA MY MOUTH.
MS. ALVARADO STAY WHERE WE'RE WHAT'S THAT? STAY WHERE WE'RE JAMES.
WELL, WE'RE NOT DOING AN OFFICIAL VOTE.
YEAH, BASED BECAUSE IT'S SPLIT, I'M GONNA STAY AT NO NEW REVENUE, BUT I WILL BUILD A DIFFERENT MODEL, UH, FOR THE 70 CENTS, UM, TO STAY STAGNANT AT 70 CENTS.
BUT, UH, THE PREVIOUS DIRECTION THAT WAS GIVEN TO ME WAS NO NEW TO BUILD A BUDGET ON NO NEW REVENUE.
UM, A LOT OF THAT WAS DRIVEN BY THE BOND CONVERSATION ORIGINALLY AS WELL.
SO WE WILL BUILD IT AT NO NEW REVENUE, BUT WE WILL HAVE AN ALTERNATE PROPOSAL, UH, AROUND THE 70, STAYING AT 70 CENTS.
AND THEN WE WILL FURTHER DISCUSS THAT WHEN IT'S TIME TO ADOPT THE BUDGET.
I WILL SEND THIS INFORMATION OUT, UH, TO Y'ALL TONIGHT AS WELL.
I HAVE ONE ADDITIONAL QUESTION.
UM, 'CAUSE I, I KNOW WE PROBABLY GAVE DIRECTION, BUT I DON'T RECALL WHAT WERE, WHAT WAS WHAT, WHAT WAS THE DIRECTION FOR THE, UH, ENDING FUND BALANCE ABOVE 60 DAYS? JUST MOVED.
THE, THE ADOPTED BUDGET I BELIEVE IS 61.
BUT I BELIEVE WE'RE CURRENTLY STANDING AT 66 IF GIVE OR TAKE.
I THOUGHT WE INCREASED THAT DAY FROM 60.
I THINK THOUGHT WE JUST SAID INCREASE.
WE DIDN'T SAY IT MUST GO TO YOU SAID JUST INCREASE THE RESERVE.
IT NEEDS TO MOVE IN A POSITIVE DIRECTION, EVEN IF IT'S JUST BY A DAY.
SO IS THAT 66 NOW? IT'S AT 61 BY THE ADOPTED BUDGET.
UM, I BELIEVE CURRENTLY IT STANDS AT 66, BUT THAT'S NOT A AUDITED NUMBER THAT I CAN GIVE YOU'ALL.
SO I, SO WE NEED TO STAY OVER 61, JUST GROW OVER THE 61 MARK FROM LAST YEAR.
SO THE NEXT STEPS THAT WE HAVE AT THIS POINT ARE, UM, I WILL SEND YOU THE DATA FROM TODAY'S REPORT OF THE STAFF WILL CONTINUE MOVE MOVING FORWARD WITH THEIR BUDGETS AT A FLAT BUDGET FOR FY 26 ALONG WITH THE, UH, PROPOSED SAVINGS THAT HAVE BEEN PUT IN PLACE.
UM, WE WILL NOT BRING FORWARD A HOMESTEAD EXEMPTION AT THIS POINT THAT HAS BEEN PART OF OUR STANDARD BUDGET PROCESS.
WE ARE NOT PLANNING TO BRING THAT FORWARD.
UM, UH, WE WILL, ONCE THE BUDGET IS FINALIZED, WE WILL HAVE AN IN-DEPTH REVIEW OF ALL THE SERVICE DELIVERY CHANGES, UH, ALONG WITH THE POSITIONS.
UM, AND, UH, HAVE A FULL BUDGET DISCUSSION WITH THE COUNCIL, UH, TO GET READY FOR BUDGET ADOPTION FOR FY 26.
MAYOR AND COUNSEL, I APPRECIATE YOUR TIME.
THAT IS ALL I HAVE TO PRESENT AT THIS.
ARE THERE ANY FINAL QUESTIONS THAT YOU WOULD LIKE TO, FOR ME TO ADDRESS WE'RE NOT GONNA DO ON BASIN CITY PROJECTS? NO, SIR.
WE'LL SAY THAT FOR ANOTHER, ANOTHER.
WHAT? WE'LL SAY THAT FOR ANOTHER MEETING.
WE'RE GONNA DO IT ON, UH, MAY 8TH.
WE'RE NOT GONNA MEET TOMORROW.
WE DON'T NEED TO MEET TOMORROW.
UNLESS YOU WANNA, IF WE HAD ALL OF THESE ON HERE, WHY WOULDN'T WE GO AHEAD AND DO THAT? DID THOSE, I TALKED ABOUT SOME OF THAT, I TALKED ABOUT SOME OF THAT IN MY OPERATIONS, LIKE A CURRENT YEAR BUDGET THAT, SO LIKE OPERATIONS OR SOME OPERATING, UH, REPORTING OR SOME OF THE DATA THAT YOU LOOKED AT.
UM, IS THERE MORE SLIDES FOR THESE TWO? YES SIR.
SO WE, YOU'RE TELLING ME WE COVERED ALL OF THIS? YES, SIR.
SO WHAT ARE WE GONNA COVER ON THE EIGHTH? UH, VECTOR.
AND WE WE'RE GONNA COVER THAT TODAY.
WE WERE GOING TO POSSIBLY DO IT TODAY OR TOMORROW, BUT I DON'T SEE A NEED FOR IT RIGHT NOW.
IT'S, THERE'S, AS WE FOCUS ON THE BUDGET, WE CAN LOOK ON MAY 8TH AND HAVE A, THE PUBLIC CAN BE THERE AT A REGULAR COUNCIL MEETING TO DISCUSS VECTOR.
HOW DO Y'ALL FEEL ABOUT THAT? ABOUT MY CAR? WE WERE GONNA DISCUSS VECTOR, BUT WE CAN HOLD OFF UNTIL MAY THE EIGHTH.
[02:50:01]
THAT'S FINE.HAVING ADJOURN, HAVING EXHAUSTED EVERYTHING IN THIS MEETING, I ADJOURNED IT AT 7:03 PM.