[00:00:01]
I GET Y'ALL'S ATTENTION? WE'RE GONNA GO AND GET STARTED.IT'S FOUR 30 AND, UH, WANNA BE RESPECTFUL OF YOUR TIME.
SO WELCOME TO THE, UH, CITIZENS BOND ADVISORY COMMITTEE, UH, OUR MAY 6TH MEETING.
I WANT TO THANK YOU FOR TAKING ADVANTAGE OF ME NOT BEING HERE LAST TUESDAY AND, UH, AND ASKING ME TO BE CHAIR OF THIS COMMITTEE.
SO I DO, I DO APPRECIATE THAT VERY MUCH.
I'VE DONE THIS A COUPLE TIMES, SO HOPEFULLY I'LL, I'LL BE ABLE TO, TO, TO LEAD THIS ONE IN A WAY THAT WILL, UH, HAVE A SUCCESSFUL OUTCOME, WHATEVER THAT MIGHT BE.
SO, I, I HAD A CHANCE, UH, SINCE WE'VE HAD A COUPLE OF MEETINGS ALREADY AND WE'VE HAD A LOT OF INFORMATION GIVEN TO US, AND THERE'S ALREADY AN AGENDA FOR TODAY, AND WE'RE GONNA GET A LOT OF GREAT INFORMATION, UH, ON WHAT THIS WILL LOOK LIKE, PACKAGED UP AND DOWN THE ROAD AND ALL THAT.
UH, I DID HAVE SOME CONVERSATIONS WITH CITY MANAGEMENT, AND I JUST WANNA SHARE WITH YOU THAT, FIRST OF ALL, DON'T BE SURPRISED WE'RE NOT WRAPPING UP IN, IN ONE MORE MEETING AFTER TODAY.
I KNOW THERE WERE FOUR MEETINGS ORIGINALLY SCHEDULED, RIGHT? MM-HMM
AND SO WE'RE, WE'RE NOT WRAPPING UP THAT, THAT SOON.
I JUST WANNA SHARE WITH YOU THAT I THINK WHAT'S VERY IMPORTANT IS THAT EVERYONE KNOWS, COME ON, EVERYONE KNOWS THAT THE VALUE OF THIS COMMITTEE IS GONNA BE BASED ON HOW MUCH TIME AND EFFORT THIS COMMITTEE PUTS INTO THE PROCESS.
AND WHAT THAT'S GONNA REQUIRE IS A LITTLE BIT MORE OF YOUR TIME, MAYBE THAN WHAT YOU THOUGHT.
AND WHAT'S MORE IMPORTANT FOR THE COMMUNITY ONCE WE GET TO, TO THE END, WHATEVER IT IS, AND EVEN CITY COUNCIL, IS THAT THEY KNOW THAT EVERY ONE OF US LOOKED AT EVERY SINGLE POTENTIAL PROJECT AND UNDERSTOOD THE VALUE OF THE PROJECT AND THE NEGATIVE OF THE PROJECT IF IT DIDN'T HAPPEN.
AND YET, WE'RE GONNA HAVE TO MAKE DECISIONS ON A RECOMMENDATION THAT IT IS GONNA BE SOME NEGATIVES BECAUSE WE CAN'T DO EVERYTHING, AND WE KNOW THERE'S A LOT OF NEED.
SO WE'RE GONNA TALK MORE ABOUT THAT PROCESS LATER.
UH, TODAY, I'M GOING TO JUST LOOK AT THE, UH, THE ITEMS WE HAVE ON OUR AGENDA.
[1. DISCUSSIONS]
SO I'M GONNA SAY THAT I'M TALKING ABOUT ITEM A RIGHT NOW.WE'RE NOT GONNA TAKE ANY POSSIBLE ACTION TODAY ON ANY OF THE ITEMS. OKAY? WE'RE GONNA BE DISCUSSING HOW WE'RE GONNA TAKE ACTION LATER ON AFTER WE'VE REVIEWED A LOT OF THIS.
BEFORE WE MOVE FORWARD, I THINK WE MIGHT HAVE A NEW MEMBER THAT HASN'T BEEN HERE YET.
KEN, IS THIS YOUR FIRST MEETING? YES.
KEN MARTIN, INTRODUCE YOURSELF AND A LITTLE BIT ABOUT, A LITTLE, JUST A QUICK BACKGROUND ON YOU.
I GREW UP IN BAYTOWN AND LIVED BAYTOWN MOST OF MY LIFE.
BEEN INVOLVED IN A LOT OF DIFFERENT ACTIVITIES.
I SPENT TWO TERMS ON THE OSE CREEK SCHOOL BOARD BACK ABOUT 10 YEARS AGO, AND HAVE TRIED TO BE ACTIVE IN THE COMMUNITY THROUGHOUT.
ANYONE ELSE HERE FOR THE FIRST TIME? EVERYONE ELSE IS, WHAT DISTRICT IS HERE? UH, WHAT DISTRICT YOU'RE, YOU'RE IN? UH, THREE LAKEWOOD.
THREE IS THAT THREE? DISTRICT THREE.
SO IT'S GOOD TO KNOW WHAT DISTRICT WE'RE FROM, JUST TO KNOW WE HAVE GOOD REPRESENTATION.
BUT WHAT I WANNA REMIND EVERYBODY IS WE MOVE FORWARD THROUGH THIS PROCESS.
WE'RE NOT HERE TO REPRESENT A DISTRICT.
WE'RE HERE TO REPRESENT THE CITY OF BAYTOWN.
OKAY? WE'RE NOT FIGHTING FOR OUR DISTRICTS, WE'RE NOT FIGHTING FOR OUR COUNCIL MEMBERS WHO APPOINTED US.
WE'RE FIGHTING FOR THE CITY OF BAYTOWN.
SO AS WE MOVE FORWARD, COUNCIL DISTRICTS ARE, ARE FINE FOR DISTRICT ACKNOWLEDGING, YOU KNOW, WHAT, YOU KNOW, WHERE, WHERE YOU LIVE AND ALL THAT.
BUT WE'RE NOT HERE TO FIGHT FOR DISTRICTS.
THAT'S NOT WHAT THIS IS GONNA BE ABOUT.
SO IF YOU GET A COUNCIL MEMBER THAT'S FORCING YOU OR PUSHING YOU ON SOMETHING, LET ME KNOW.
I'D BE GLAD TO HAVE A VISIT WITH THEM.
I KNOW EVERY ONE OF THEM WILL HAVE A VISIT, AND WE'LL TALK ABOUT WHAT'S BEST FOR THE CITY OF BAYTOWN.
I CAN TELL YOU THAT IN 2007, THE LAST TIME THERE WAS A GENERAL OBLIGATION BOND THAT WAS PUT OUT BY THE CITY OF BAYTOWN.
THERE WAS $30 MILLION IN THAT BOND FOR STREETS, AND NOT ONE SINGLE DOLLAR WENT TO DISTRICT FOUR.
WHO, WHO IN HERE IS FROM DISTRICT FOUR? OKAY.
YOU KNOW WHY? THEY DIDN'T HAVE THE WORST STREETS IN TOWN, RIGHT? THEY DIDN'T HAVE THE WORST STREETS IN TOWN.
THEY WERE DIVIDING UP THE MONEY EQUALLY AMONG DISTRICTS.
WE HAVE THE CITY OF BAYTOWN THAT HAS NEEDS.
AND SO WE'RE GONNA LOOK AT THIS AS, AS A CITY AS A WHOLE, NOT CARVED UP INTO DISTRICTS.
YOU'RE ONLY HERE BECAUSE EACH COUNCIL MEMBER GOT AN OPPORTUNITY TO APPOINT PEOPLE TO THIS BOARD.
BUT WE'RE NOT HERE FOR THE COUNCIL MEMBERS.
OKAY? WE'RE HERE FOR THE CITY OF BAYTOWN.
WE'LL TALK A LITTLE BIT MORE ABOUT THAT LATER AS WE GO THROUGH THE PROCESS.
SO I THINK, UH, DAVE ROGERS IS HERE TODAY.
YOU PROBABLY SAW MATT HOLLIS LAST TIME.
SO, UH, WE GOT AN IMPROVEMENT.
WE, WE'VE GOT THE MANAGING EDITOR, WE GOT THE MANAGING EDITOR INSTEAD OF THE ASSISTANT MANAGING EDITOR.
WE LIKE MATT, BUT WE GOT DAVE TODAY.
SO, UH, IF HE'S NOT SURE WHO YOU ARE, HE'LL LOOK.
HE MAY LOOK AT YOUR NAME TAG, GET YOUR NAME RIGHT, YOU KNOW, SO WHEN HE QUOTES YOU, YOU KNOW, HE'LL BE ACCURATE, RIGHT? ALL RIGHT.
SO I'M GOING TO TURN IT OVER NOW TO WHOEVER IS GONNA BE TALKING ABOUT THE NEXT ITEM, BOND PROGRAM, ADVOCACY, AND EDUCATION.
AND JUST TAKE IT, TAKE IT FROM THERE.
[00:05:01]
DOING WELL TODAY.UH, WE SERVE AS BOND COUNCIL TO THE CITY.
UH, AND I'M HERE TODAY TO TALK TO YOU ABOUT A NUMBER OF THE ITEMS ON THE AGENDA.
SO, MR. SANTANA, IF IT'S OKAY, I MAY JUMP AROUND A LITTLE BIT THERE.
UM, TRY TO PUT TOGETHER A PRESENTATION IN A MANNER THAT WOULD REALLY HELP YOU UNDERSTAND THE PROCESS THAT WE'RE GOING THROUGH AND KIND OF HOW THE BOND ISSUANCE PROCESS WORKS AS WELL.
SO, HOPEFULLY IT BRINGS TOGETHER SOME OF THE THINGS THAT YOU'VE TALKED ABOUT AT YOUR PRIOR COUPLE OF MEETINGS.
SO, THE FIRST ITEM ON THE, THE FIRST SLIDE HERE, LET'S SEE, THERE WE GO.
SO, UM, POLITICAL SUBDIVISIONS TYPICALLY FINANCE MAJOR PUBLIC IMPROVEMENTS THROUGH THE ISSUANCE OF BONDS.
SO BONDS ARE USED TO FINANCE CAPITAL PROJECTS.
SO THAT'S IMPORTANT TO, IMPORTANT TO REMEMBER.
WHAT WE'RE TALKING ABOUT IS THINGS THAT ARE CAPITAL IN NATURE.
SOME EXAMPLE OF THE TYPES OF CAPITAL PROJECTS THAT WE DO ARE CONSTRUCTION OF STREET SIDEWALKS, DRAINAGE IMPROVEMENTS, POLICE AND FIRE STATIONS, PARKS AND RECREATIONAL FACILITIES.
AND I BROKE 'EM UP IN THAT WAY.
JUST SO THAT YOU CAN, AS, AS WE GO THROUGH THIS, WE'RE GONNA TALK ABOUT THE TYPES OF CATEGORIES THAT WE LOOK AT WHEN YOU'RE ISSUING DEBT AND HAVING PROPOSITIONS.
AND THOSE ARE EXAMPLES OF SOME OF THE CATEGORIES THAT WE'LL SEE AS WE TALK ABOUT THIS GOING ON.
SO WHY DO GOVERNMENTAL UH, ISSUERS ISSUE BONDS FOR CAPITAL PROJECTS? FIRST, YOU'RE LOOKING AT AN ASSET, ASSET AND LIABILITY MATCH.
SO YOU'RE FINANCING CAPITAL INTENSIVE INFRASTRUCTURE ASSETS OVER TIME.
AND SO YOU'RE PAYING FOR THOSE LONG LIVE ASSETS OVER TIME.
THERE'S A SHARED LIABILITY PHILOSOPHY.
SO IF YOU ISSUE A 30 OR 50 YEAR ASSET, YOU'RE GONNA HAVE PEOPLE BENEFITING FROM THAT FOR OVER 30 TO 50 YEARS.
SO DURING THAT TIMEFRAME, YOU'RE HAVING PEOPLE PAY FOR IT AS IT'S USED.
SO THAT'S ANOTHER REASON WHY PEOPLE DO IT.
UM, YOU CAN ACCELERATE PROJECT TIMELINES, PAY AS YOU GO, PROCESSES CAN BE REALLY DIFFICULT.
YOU HAVE TO SET ASIDE A LOT OF FUNDS OVER TIME BEFORE YOU CAN UNDERTAKE A PROJECT.
YOU CAN ACCELERATE THAT PROJECT THROUGH THE ISSUANCE OF BONDS.
SO THAT'S ANOTHER REASON THERE.
ALSO, THERE ARE A LOT OF LIMITATIONS UNDER STATE LAW ON THE AMOUNT OF MAINTENANCE AND OPERATIONS FUNDS THAT YOU CAN RAISE AT THIS POINT.
THEY'VE REALLY COMPRESSED THE ABILITY OF THE CITY TO RAISE MAINTENANCE AND OBLIGATION TAX REVENUES.
SO THAT'S ANOTHER REASON WHY A LOT OF YOUR CAPITAL PROJECTS, UM, ARE, ARE NOT DONE ON A PAYGO BASIS RIGHT NOW.
THERE'S ALSO A VERY LOW COST OF FUNDS, TYPICALLY FOR MUNICIPAL BONDS.
WE USUALLY STRUCTURE THEM SO THEY CAN BE ISSUED ON A TAX EXEMPT BASIS.
SO THAT LOWERS THE COST OF BORROWING.
AND THERE ARE ALSO LESS COSTLY THAN LEASE STRUCTURES.
SO THE OTHER WAY PEOPLE MAY OFTEN DO CAPITAL PROJECTS IS THROUGH A CAPITAL LEASE.
USUALLY YOU HAVE EMBEDDED INTEREST RATES THAT ARE HIGHER IN THOSE PROCESSES, AND SO IT'S A LITTLE BIT MORE EXPENSIVE AND THAT GETS PAID FOR ON THE M AND O SIDE OF YOUR, UH, OF YOUR TAXES.
SO WHAT'S THE GENERAL OBLIGATION BOND PROCESS? WE'LL KIND OF WALK THROUGH THIS AND YOU CAN GO BACK TO THIS SLIDE.
IT'S A, IT'S A REALLY USEFUL SLIDE.
SO WE START OFF WITH A PLANNING AND COMMUNITY INVOLVEMENT STAGE, AND I'LL GO OVER EACH OF THESE AS WE GO THROUGH THIS.
THEN YOU HAVE THE OPTION OF THE ADOPTION OF AN ORDINANCE CALLING THE BOND ELECTION.
SO RIGHT NOW WE'RE IN THIS PLANNING AND COMMUNITY INVOLVEMENT STAGE.
WE'LL NEXT GO TO THE, UH, THE CALLING THE BOND ELECTION.
AND THAT'S SOMETHING THAT COUNCIL HAS DONE.
AFTER THAT, THERE'S AN EXTENSIVE PROCESS OF NOTICES THAT HAVE TO GO ALONG BEFORE YOU HAVE THE ELECTION.
SO YOU'LL PUBLISH NOTICE, YOU'LL POST NOTICE, YOU'LL HAVE A LOT OF THINGS THAT SHOW UP ON WEBSITES, A LOT OF TRANSPARENCY THAT'S ADDED THERE.
THEN YOU'LL HAVE THE VOTE FOR THE BONDS.
AFTER THE BONDS ARE VOTED, WE'VE THEN GOTTA GO BACK TO COUNCIL.
EACH TIME YOU ISSUE DEBT, ALL THE BONDS WILL NOT BE ISSUED AT ONE TIME.
YOU GO BACK TO COUNCIL EACH TIME THEY HAVE TO APPROVE THE ISSUANCE OF BONDS EACH TIME THAT YOU DO IT.
ONCE THE BONDS ARE APPROVED, I WILL THEN TAKE WHATEVER PROCEDURES THE COUNSEL'S ADOPTED TO THE ATTORNEY GENERAL'S OFFICE.
WE'LL GO THROUGH THE ATTORNEY GENERAL'S OFFICE.
THEY'LL REVIEW THE PROCEDURES, THEY'LL REVIEW WHAT COUNCIL HAS DONE AND APPROVE THE ISSUANCE OF BONDS.
THEN WE'LL ISSUE THE BONDS AND START FUNDING THE CAPITAL IMPROVEMENTS.
SO THAT'S THE GENERAL PROCESS.
IF YOU EVER WANNA LOOK BACK AT THAT.
THIS IS A REALLY GOOD, REALLY GOOD SLIDE SO THAT YOU CAN SEE HOW THAT PROCESS WORKS.
SO THE FIRST STEP, AGAIN, THIS IS WHERE WE ARE RIGHT NOW, IS PLANNING AND COMMUNITY INVOLVEMENT.
THE CITY HAS CONDUCTED A NEEDS ASSESSMENT AND THEY'VE DONE THEIR CAPITAL IMPROVEMENT PLANNING.
AND THAT'S A LOT OF THE MATERIALS THAT YOU'RE GONNA BE SEEING OVER THIS FOUR OR FIVE WEEK PERIOD THAT YOU'RE TALKING ABOUT IT.
AND THEY'RE SOLICITING YOUR INPUT AND THE INPUT OF THE BOND COMMITTEE.
AND WE'RE ALSO GONNA TALK ABOUT SOME OF THE FINANCIAL ANALYSIS ASSOCIATED WITH HOW MUCH DEBT THE CITY CAN OFFER.
SO THIS IS THE BIG FIRST STAGE THAT GOES INTO MAKING A RECOMMENDATION TO COUNCIL AS TO WHAT PROJECTS TO UNDERTAKE THE NEXT STEP IN THE PROCESS OF THE ADOPTION OF THE ORDER CALLING THE BOND ELECTION.
SO AGAIN, AFTER, AFTER THAT COMMUNITY INPUT, THE GOVERNING BODY OF THE ISSUER, IN THIS CASE, THE CITY HAS TO VOTE TO APPROVE AN ORDER CALLING THE ELECTION.
ELECTED OFFICIALS MUST VOTE AT A PUBLIC MEETING ON IT HAS TO BE APPROVED BY MATURITY VOTE OF THE GOVERNING BODY.
UM, AND THE ELECTION ORDERS CONTENTS ARE, ARE REGULATED BY STATUTE.
[00:10:02]
AFTER THAT WE HAVE BALLOT LANGUAGE.SO THE BALLOT LANGUAGE IS GONNA BE EMBEDDED IN THAT ELECTION ORDINANCE THAT WE'RE TALKING ABOUT.
THERE ARE RULES THAT GO ALONG WITH HOW THE STATUTE, HOW THE, UH, PROPOSITION HAS TO BE STRUCTURED.
SO THE LANGUAGE OF THE BALLOT IS THE BALLOT PROPOSITION.
THE BALLOT PROPOSITION HAS TO HAVE A PLAIN LANGUAGE DESCRIPTION OF THE SINGLE SPECIFIC PURPOSES FOR WHICH THE DEBT IS TO BE AUTHORIZED.
SO YOU HAVE TO HAVE AT LEAST ONE BOND PROPOSITION FOR EACH CATEGORY OF PROJECTS.
SO IT'S NOT A SINGLE PROPOSITION FOR A SINGLE STREET.
YOU CAN HAVE ALL OF YOUR STREETS IN A SINGLE PROPOSITION, OR YOU CAN HAVE ALL OF YOUR DRAINAGE IN A SINGLE PROPOSITION, OR YOU CAN HAVE ALL OF YOUR PARKS IN A SINGLE PROPOSITION.
YOU CAN ALSO BREAK 'EM UP BETWEEN THOSE IF YOU WANTED TO, BUT YOU CAN'T DO PARKS AND DRAINAGE IN THE SAME PROPOSITION.
AND YOU CAN'T DO PARKS AND STREETS IN THE SAME PROPOSITION.
YOU HAVE TO BREAK THEM UP BY THAT USE AND PRESENT 'EM TO THE VOTERS SO THAT THEY CAN SEE THEM.
FOR MANY OF YOU WHO'VE DEALT WITH SCHOOL DISTRICTS, I KNOW WE'VE GOT A COUPLE OF FOLKS HERE WHO'VE DEALT WITH SCHOOL DISTRICTS BEFORE.
THEY PUT A LOT OF THEIR PROPOSITIONS IN A SINGLE PROPOSITION, AND YOU VOTE ON THE ENTIRE PACKAGE.
IN A CITY CONTEXT, IT'S MUCH MORE RESTRICTIVE AND YOU HAVE TO VOTE ON SINGLE SPECIFIC PURPOSES EACH TIME.
SO AS WE GO THROUGH THIS PROCESS, THAT'S SOMETHING THAT'LL BE IMPORTANT AS YOU'RE, AS YOU'RE LOOKING AT WHAT'S RECOMMENDED COUNCIL.
SO THIS IS AN EXAMPLE OF WHAT A PROPOSITION LOOKS LIKE.
I KNOW YOU GUYS HAVE ALL SEEN THIS ON THE BALLOT BEFORE, BUT THIS IS WHAT A BALLOT PROPOSITION LOOKS LIKE.
UM, THE OTHER THING THAT WE HAVE TO DO IS THAT STATE LAW NOW REQUIRES THAT WE DO A VOTER INFORMATION DOCUMENT FOR EACH PROPOSITION.
AND THIS VOTER INFORMATION DOCUMENT'S GONNA HAVE A LOT OF INFORMATION IN IT.
IT'S GONNA HAVE THE BALLOT LANGUAGE, IT'S GONNA HAVE INFORMATION REGARDING THE DEBT OBLIGATIONS.
SO THE BONDS THAT ARE, THAT ARE LOOKED AT IN THAT PROPOSITION THAT SHOWS THE PRINCIPAL AMOUNT, THE ESTIMATED PRINCIPLE AND INTEREST REQUIRED TO PAY, UH, PAY DEBT SERVICE ON THE BONDS CAN HAVE INFORMATION REGARDING ALL THE OUTSTANDING DEBT OF THE CITY, THE PRINCIPAL AMOUNT, INTEREST PRINCIPLE AND INTEREST, AS WELL AS THE TAX RATE IMPACT OF ISSUING THE DEBT.
SO WE'RE GONNA HAVE ALL THAT INFORMATION FOR EACH PROPOSITION, AND IT'S GONNA BE BROKEN OUT FOR EACH PROPOSITION.
AND WE'LL ALSO HAVE A SAMPLE SAMPLE AMORTIZATION SCHEDULE THAT SHOWS HOW THE CITY WOULD BE INTENDING TO ISSUE THAT DEBT AND WHAT THAT WOULD LOOK LIKE.
SO EACH PROPOSITION THAT THE CITY DOES IS GONNA HAVE A DOCUMENT LIKE THIS THAT'S ASSOCIATED WITH IT.
THAT WILL BE ON THE CITY'S WEBSITE.
IT'LL ALSO BE POSTED AT THE POLLING PLACE.
SO WHEN YOU GUYS GO TO THE POLLING PLACE, ANYTIME YOU'RE VOTING ON DEBT, YOU'LL SEE A BIG BINDER THAT'S ON THE TABLE WHERE YOU SIGN IN, THAT'S GOT ALL OF THESE EDIT.
SO IF YOU EVER WANTED TO LOOK AT IT WHEN YOU'RE VOTED, IT'S ALL POSTED THERE, BUT IT'S ALSO AVAILABLE ON THE WEBSITE SO THAT YOU'LL HAVE IT, UH, HAVE IT THERE AS WELL.
OKAY, SO FINANCIAL STRUCTURING CONSIDERATIONS.
SO AFTER YOU'VE HAD A SUCCESSFUL ELECTION, THAT'S NOT THE END OF IT.
YOU'LL TAKE A LOOK AT WHAT PROJECTS HAVE PASSED AND THEN WORK WITH, WITH THE CITY AND BOND COUNCIL AND YOUR FINANCIAL ADVISOR TO LOOK AT HOW TO BEST STRUCTURE BRINGING THOSE TO MARKET.
YOU'VE TALKED ABOUT WHAT YOU THINK THE TAX RATE IMPACT WILL BE, AND THAT'S BASED ON HOW YOU THINK YOU'LL GO ABOUT DOING THIS.
AND SO BEFORE EACH ISSUANCE, THERE'S A WHOLE OTHER PROCESS THAT GOES ON WHERE WE'RE LOOKING AT WHAT THE MARKET LOOKS LIKE, HOW MUCH THE CITY CAN AFFORD, WHAT PROJECTS THEY HAVE THEIR TAX REQUIREMENTS ON.
YOU'VE GOTTA HAVE AN EXPECTATION THAT YOU'RE GONNA BE ABLE TO SPEND THOSE PROCEEDS WITHIN THREE YEARS WHEN YOU ISSUE.
SO A LOT OF THINGS ON HOW YOU TIME THE PROJECTS AND EVERYTHING WHEN THEY COME UP.
SO THAT'S THE STEP AFTER THE BONDS HAVE BEEN PASSED AS PART OF THOSE, AGAIN, WE TALKED ABOUT IT.
WHY IS THE TIME LIMIT ON THE ISSUANCE SPENDING MOST TIME FOR THE DIFFERENT FOR THE CITY THAN IT IS FOR THE SCHOOL DISTRICT? IT'S NOT, UH, THE TIME LIMIT, THE REASONABLE EXPECT.
IT'S A REASONABLE EXPECTATIONS TEST.
UH, AND IT'S THE SAME, UH, NOW YOU DON'T ALWAYS HIT THOSE, THOSE EXPECTATIONS, RIGHT? YOU CAN HAVE A HURRICANE HARVEY COME IN, YOU CAN HAVE A PANDEMIC.
YOU CAN HAVE THOSE TYPES OF THINGS WHICH ADJUST YOUR TIMEFRAME.
YOU CAN HAVE SOMETHING THAT DISRUPTS THE SUPPLY CHAIN SO THAT YOU CAN'T DO IT A FIRE, WHATEVER IT IS.
THERE CAN BE A LOT OF REASONS WHY THOSE EXPECTATIONS AREN'T MET, BUT THAT'S, THAT'S THE EXPECTATION WHEN YOU'RE, WHEN YOU'RE ISSUING THAT DEBT.
SO AGAIN, THOSE ARE THE THINGS THAT I JUST TALKED ABOUT.
THOSE ARE THE CONSIDERATIONS THAT WE'RE TAKING INTO ACCOUNT WHEN YOU'RE LOOKING AT EACH ISSUANCE AGAIN.
BUT THE EXPECTATION IS NOT THAT YOU'RE GONNA ISSUE ALL THE DEBT THAT'S APPROVED RIGHT AFTER IT'S APPROVED.
THERE'S GONNA BE A TIMEFRAME WHERE YOU'RE ROLLING THAT IN.
'CAUSE YOU CAN'T DO ALL THOSE PROJECTS ALL AT ONCE.
YOU, IT TAKES SOME TIME TO DO IT.
SO AS WE'RE LOOKING AT KIND OF THE PROCESS THAT WE'RE GOING THROUGH, UM, WE'RE DOING THE PLANNING PROCESS RIGHT NOW THAT'S KIND OF IN THIS EARLY PHASE.
IN AUGUST, WE'LL CALL THE ELECTION, THERE'LL BE A NOTICE PERIOD IN KIND OF THE INFORMATION PROCESS THAT GOES OUT TO THE VOTERS.
THAT'LL HAPPEN IN SEPTEMBER AND OCTOBER.
AND THEN, THEN EARLY VOTING STARTS IN, UH, LATE OCTOBER AND THE ELECTION HAPPENS IN NOVEMBER.
SO THAT'S JUST THE BASICS OF KIND OF WHERE WE ARE, WHAT THE, WHAT
[00:15:01]
THE ISSUANCE PROCESS IS.I'M HAPPY TO ANSWER ANY QUESTIONS BEFORE WE GO ON TO ADVOCACY AND EDUCATION.
THE, UH, WHAT ARE THE CHANCES OF, LET'S SEE, IT SAYS THAT THE GOVERNING BODY HAS TO VOTE ON IT AFTER IT'S VOTER APPROVED.
WHAT ARE THE CHANCES OF THEM NOT APPROVING IT? Y YOU KNOW, IT DEPENDS ON WHAT COUNTS.
MOST OF, I I'LL SAY MY EXPERIENCE HAS BEEN THAT MOST OF THE TIME IF YOU'VE GOT A VOTER APPROVED PROJECTS AND THE VOTERS HAVE SAID, THIS IS IMPORTANT, THE COUNCIL WILL GO FORWARD WITH ISSUING DEBT KIND OF ON THE PLAN THAT YOU'VE LOOKED AT.
NOW, IF YOU HAVE BIG CHANGES IN THE COMMUNITY OR THERE'S BEEN A NATURAL DISASTER OR SOMETHING ELSE THAT'S KIND OF CHANGED EXPECTATIONS, YOU MAY SEE AN ADJUSTMENT AND HOW MUCH IS ISSUED IN THE PROCESS.
OR THERE'S BEEN A BIG MARKET UPSET WHERE THERE'S HUGE RECESSION OR THERE'S SOMETHING ELSE THAT'S GOING ON.
SO THERE'S, THERE'S ALWAYS A CHANCE THAT THERE'LL BE SOME ADJUSTMENT BASED ON THAT, OR TIMELINES MAY SLIDE BASED ON THE MARKET ENVIRONMENT.
BUT GENERALLY SPEAKING, WHAT I'VE SEEN IS WHEN IT'S BEEN APPROVED BY THE VOTERS, THE COUNCIL WILL THEN COME BACK AND KIND OF TAKE THAT AS THE WILL OF THE VOTERS ON, ON WHERE YOU'RE HEADED.
SO JOHN, CAN I JUST CLARIFY YOUR, YOUR, MAYBE YOUR QUESTION WAS AROUND, CAN COUNCIL CHANGE THEIR MIND ON WHAT THE VOTERS APPROVED TO DO? THAT'S CORRECT.
AND WHAT ARE THE CHANCES OF THAT ACTUALLY HAPPENING? YEAH, SO, SO, SO TYPICALLY WHAT'S HAPPENED, AND I KNOW IT'S BEEN A LONG TIME SINCE THE LAST CITY BOND, GEO BOND ELECTION IS THERE, THERE WILL BE A COMMITTEE THAT FORMS AFTER THE ELECTION IS OVER, AND IF IT'S SUCCESSFUL, THERE'LL BE A COMMITTEE SIMILAR TO THIS THAT WILL ASSIST THE CITY IN MEETING THOSE OBLIGATIONS, NOT FORCING THEM, RIGHT? BUT WORKING ALONG WITH THEM.
BECAUSE AS MENTIONED BEFORE, UH, THERE WAS, THERE WAS A PRIOR BOND WHERE RIGHT OUTTA THE BOX, UH, OSE CREEK, CISD PASSED A HUGE BOND.
AND THEN HURRICANES KATRINA AND RITA HIT.
SO THERE WAS A LOT OF ADJUSTING AND, AND CHANGES THAT HAD TO HAPPEN.
BIDS WERE COMING IN REAL HIGH 'CAUSE THERE WAS A LOT OF WORK EVERYWHERE.
AND SO THE CITIZENS GROUP CAN HELP, YOU KNOW, COMMUNICATE ALL THAT, UH, PACKAGE IT UP TO, TO CITY COUNCIL.
AND, AND, AND WHEN THEY'RE MAKING THOSE DECISIONS, CITIZENS KNOW THAT CITIZENS HAVE BEEN INVOLVED.
AND MR. SANTANA, IF I CAN ADD ON THAT, BECAUSE I DIDN'T, I DIDN'T REALIZE THAT WAS THE PRECISE YEAH, I THINK THE PRECISE QUESTION THAT, THAT WAS THERE.
SO WHEN YOU VOTED THESE PROJECTS, LIKE WHEN THE PROJECTS ARE ON THERE AND WE SEE WHAT THE PROPOSITIONS LOOK LIKE, THERE'S SOMETHING CALLED A CONTRACT WITH THE VOTERS THAT COMES ALONG WITH THAT PROPOSITION.
AND WHAT'S LAID OUT IN THE ELECTION ORDER.
AND IN THAT PROPOSITION IS THE, IS WHAT HAS TO BE DONE WITH THOSE BOND PROCEEDS, RIGHT? SO THOSE ARE, YOU HAVE TO STAY WITHIN THAT CATEGORY OF PROJECTS.
AND IF THERE ARE PROJECTS THAT ARE NAMED IN THE PROPOSITION, THEN UNLESS THERE'S A SIGNIFICANT CHANGE IN CIRCUMSTANCES, YOU ARE, YOU, YOU, THE, THE COUNCIL IS OBLIGATED TO SPEND THE FUNDS ON THOSE PURPOSES.
DOES THAT, DOES THAT MAKE SENSE? SURE.
SO WE'LL JUMP TO THE NEXT, UNLESS THERE'S ANOTHER QUESTION, WE'LL JUMP TO THE NEXT PART.
I'M HAPPY TO ANSWER ANY QUESTIONS ALONG THE WAY.
SO THE NEXT PART OF THIS IS WHAT HAPPENS AFTER YOU CALL.
SO THERE, THERE ARE DIFFERENT RULES BEFORE YOU CALL AN ELECTION AND AFTER YOU CALL AN ELECTION.
SO BEFORE WE CALL AN ELECTION, WE'RE IN A PROCESS WHERE WE'RE GATHERING INFORMATION, TALKING TO THE PUBLIC ABOUT PROS AND CONS OF DIFFERENT PROJECTS, HOW THINGS ARE GOING ALONG, UM, AND, AND DETERMINING WHAT IT IS THAT'S GOING TO BE IN THE ELECTION ORDER RIGHT AFTER THE ELECTION IS CALLED.
THERE ARE SOME REALLY STRINGENT RULES THAT APPLY TO THE CITY AND WHAT THEY'RE ALLOWED TO DO FROM AN ADVOCACY STANDPOINT, RIGHT? SO AFTER AN ELECTION IS CALLED AN OFFICER AND EMPLOYEE OF A POLITICAL SUBDIVISION CANNOT SPEND OR AUTHORIZE SPENDING PUBLIC FUNDS FOR POLITICAL ADVERTISING.
UM, NOW WHAT, WE'LL GO TO THE NEXT SLIDE.
SO WHAT IS POLITICAL ADVERTISING? SO IT'S A COMMUNICATION, ADVOCATING AN OUTCOME.
SO ARE YOU SUPPORTING OR OPPOSING A BALLOT MEASURE IF YOU'RE LOOKING FOR A PARTICULAR OUTCOME, THAT WOULD BE CONSIDERED ADVOCACY.
ADVOCACY CAN BE WRITTEN, IT CAN BE SPOKEN, IT CAN COME UP IN ANY NUMBER OF WAYS.
SO WHAT THE RULE, WHAT THE, WHAT THE STATE LAW IS, IS THAT AFTER AN ELECTION IS CALLED, YOU CANNOT, THE CITY CANNOT USE PUBLIC FUNDS TO ADVOCATE FOR THE PASSAGE OF THE ELECTION.
NOW THEY ARE ALLOWED TO DO SOME THINGS, UM, ON THE NEXT, ON THE NEXT PAGE.
UM, OKAY, SO SPENDING PUBLIC FUNDS, WE'LL GO BACK BEFORE I TALK ABOUT THAT.
SO, SPENDING PUBLIC FUNDS IS MORE THAN JUST SPENDING PUBLIC MONEY.
IT'S USE OF EMPLOYEES, IT'S USE OF CITY RESOURCES.
AGAIN, THAT'S, YOU CANNOT USE THOSE TO ADVOCATE FOR THE PASSAGE OF THE BOND.
NOW, WHAT YOU CAN DO, AND I DON'T, I DON'T HAVE A SLIDE ON THIS, BUT WHAT YOU CAN DO AND WHAT YOU ARE ALLOWED TO DO IS TO SPEND MONEY, UM, ON FACT SHEETS, RIGHT? TO TALK ABOUT WHAT THE FACTS ARE RELATED TO THE BONDS, TO EXPLAIN WHAT THE PROJECTS ARE, TO EXPLAIN WHAT THE TAX RATE IMPACT IS, TO TALK ABOUT THOSE TYPES OF THINGS.
SO IT'S VERY CLEAR UNDER TEXAS LAW THAT THAT'S WHAT
[00:20:01]
THE, WHAT THE CITY CAN DO.SO THEY CAN DO A NUMBER OF PIECES TALKING ABOUT, AGAIN, THIS IS WHAT THIS PROPOSITION DOES, THIS IS WHY THIS PROPOSITION IS BEING PROPOSED.
HERE'S WHAT THE TAX RATE IMPACT IS ASSOCIATED WITH THAT, RIGHT? SO THOSE ARE ALL THINGS THAT THE CITY IS ALLOWED TO DO.
IN ADDITION CITY OFFICERS, EMPLOYEES ON THEIR OWN TIME AND USING THEIR OWN RESOURCES.
AGAIN, THEY CAN'T USE CITY RESOURCES FOR THIS, BUT ON THEIR OWN TIME AND OWN RESOURCES, THEY CAN CAMPAIGN FOR THE PASSAGE OF THE BOND.
UM, SO IT'S AN IMPORTANT DISTINCTION THAT ONCE THE ELECTION IS CALLED AFTER THE CITY IS CALLED THE ELECTION ORDER, THEY'RE SUBJECT TO THESE RESTRICTIONS ON, UH, ON HOW YOU DO THIS.
SO LET'S GO TO THE NEXT SLIDE.
SO WE'LL TALK, TALK ABOUT KIND OF THE GROUPS THAT ARE INVOLVED IN THE, UH, IN THE ELECTION PROCESS AND WHAT THEIR, WHAT THEIR ROLES ARE.
SO THE FIRST, YOU'VE GOT THE CITIZEN BOND ADVISORY COMMITTEE, THAT'S THIS GROUP.
YOU'VE GOT THE CITY, AND THEN OFTEN THEY'RE POLITICAL ACTION COMMITTEES.
AND WE'LL TALK ABOUT, WE'LL TALK ABOUT THOSE BRIEFLY AFTER THIS.
SO THE CITIZENS BOND ADVISORY COMMITTEE, YOU GUYS ARE AN AD HOC COMMITTEE THAT'S CREATED BY THE CITY.
YOU'RE COMMUNITY LEADERS INVITED BY THE CITY TO PARTICIPATE IN THE EVALUATION OF THE PROJECT AND GATHERING COMMUNITY INPUT IN THE PRE-BOND PROCESS.
Y'ALL RECEIVE INFORMATION FROM THE CITY, YOU INTERFACE WITH YOUR COMMUNITIES, BRING INFORMATION BACK TO THE CITY, HELP DEVELOP THE PROJECTS IN THE BOND PROPOSITION, AND THEN ULTIMATELY MAKE A RECOMMENDATION TO COUNCIL.
SO THAT'S KIND OF Y'ALL'S ROLE AS THIS, AS THIS COMMITTEE.
THE CITY, AND THIS INCLUDES CITY MANAGEMENT, CITY EMPLOYEES, AND THE COUNCIL.
SO THEY'VE CONDUCTED THEIR NEED NEEDS ASSESSMENT, THEY'VE DONE CAPITAL IMPROVEMENT PLANNING, THEY'VE CONTINUE TO WORK ON FINANCIAL PLANNING.
AND THEN PRIOR TO CALLING THE ELECTION, THEY'RE WORKING WITH YOU GUYS TO SOLICIT INPUT.
AND WITH THE INFORMATION AND RECOMMENDATIONS, THEY, THEY'LL CALL THE BOND ELECTION.
AND THEN AFTER THE ELECTION IS CALLED, LIKE WE TALKED ABOUT, THAT THEY CAN PROVIDE FACTUAL INFORMATION ABOUT THE ELECTION AND THE PROPOSED BONDS, BUT THEY CAN'T ADVOCATE FOR IT.
THE LAST GROUP THERE CAN BE POLITICAL ACTION COMMITTEES.
SO THOSE ARE PRIVATELY FUNDED CAMPAIGN COMMITTEES.
THEY ARE NOT AFFILIATED WITH THE CITY.
THEY'RE DISTINCT FROM THE BOND COMMITTEE.
THIS COMMITTEE, AND HERE, THE ADVISORY COMMITTEE, THOUGH, YOU CAN HAVE OVERLAP OF MEMBERSHIP IN THOSE.
UH, THEY'RE CREATED BY COMMUNITY MEMBERS, OFTEN CHAMBERS OF COMMERCE THAT ARE INTERESTED IN SUPPORTING ELECTIONS.
AND THEY'RE GENERALLY ACTIVE WANTS THAT ELECTION'S BEEN CALLED.
THEY CAN RAISE FUNDS ON BEHALF OF THE ELECTION.
THEY CAN CULTIVATE GRASSROOTS SUPPORT.
BUT BECAUSE THE CITY, THE PAC'S NOT AFFILIATED WITH THE CITY, IT DOES NOT COORDINATE ITS ACTIVITIES WITH THE CITY RIGHT THERE.
THERE'S NOT A COORDINATION THERE.
IT'S JUST GOTTA BE AN INDEPENDENT ORGANIZATION, SEPARATE AND APART FROM THE CITY.
UM, AND SO THEY CAN USE PUBLICLY AVAILABLE INFORMATION ABOUT A BOND ELECTION, BUT THE CITY, THERE'S, THERE CAN'T BE COORDINATION BETWEEN THE CITY AND THE PAC.
SO IF THERE IS A PAC CREATED, IT'S GOTTA OPERATE ON ITS OWN.
IT'S GOTTA BE INDEPENDENT FROM THE CITY.
SO PAC ARE NOT ALWAYS NECESSARILY PROB THEY CAN BE FINE.
AND SAME RULES THERE, RIGHT? A COMPACT, IF THERE IS ONE, IT HAS TO BE INDEPENDENT FROM THE CITY OR, UH, USE OF CITY FUNDS AS WELL.
SO JUST LIKE YOU SAID, THERE COULD BE AN OVERLAP OF MEMBERSHIP WITH LIKE THE CDA, THIS COMMITTEE AND A PAC MM-HMM
DOES THAT ALSO APPLY TO LIKE CITY EMPLOYEES? YES.
SO IF THEY'RE OPERATING ON THEIR OWN TIME WITH THEIR OWN RESOURCES, THEY HAVE THE ABILITY TO WORK, UH, WORK ON BEHALF OF, OF THE, UH, THE BONDS.
BUT AGAIN, IT HAS TO BE ON THEIR OWN TIME AND THEIR OWN RESOURCES.
AND THAT'S A, THAT'S A REAL CRITICAL COMPONENT.
IF YOU'RE AT CITY FACILITIES DOING THAT TYPE OF THING, IT'S, YOU'RE, YOU'RE LIMITED IN WHAT YOU CAN DO.
OTHER QUESTIONS ON, ON THOSE POINTS? OKAY.
SO JUST SOME OF THE CONSIDERATIONS THAT GO ON.
UM, AND, AND POSSIBLE LIMITATIONS.
SO PART OF, PART OF THE THING YOU'LL HAVE TO THINK ABOUT AS YOU'RE SETTING UP YOUR BOND PROPOSITIONS ARE WHAT ARE THE CONSEQUENCES OF A PARTICULAR CONSTRUCTION OF BOND PROPOSITIONS THAT YOU PUT TOGETHER? CITIES, AGAIN, ARE A LITTLE BIT DIFFERENT FROM SCHOOL DISTRICTS 'CAUSE YOU ALSO HAVE THE ABILITY TO ISSUE UNBOLTED DEBT FROM TIME TO TIME.
IF YOU HAVE A FAILED BOND ELECTION, THEN THE CITY IS PROHIBITED FROM ISSUING NON VOTED DEBT FOR THE SAME PURPOSES AS THE FAILED PROPOSITION FOR THREE YEARS AFTER THE FAILED BOND PROPOSITION.
SO IF YOU SAY WE'RE GONNA WORK ON CENTER STREET, AND YOU, THAT'S THE, YOU HAVE A BOND PROPOSITION, IT'S X MILLION DOLLARS FOR THIS PORTION OF THIS STREET AND THAT PROPOSITION WERE TO FAIL, THEN YOU WOULD BE FROZEN OUT FOR THREE YEARS ON ISSUING NON VOTED DEBT FOR THAT SPECIFIC PROJECT THAT'S LISTED.
IF YOU HAVE A REALLY BROAD PROPOSITION THAT'S ALL STREETS AND IT FAILS, THEN YOU HAVE A BROADER FREEZE
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ON WHAT YOU CAN DO WITH NON VOTED DEBT AFTERWARDS.SO YOU GOTTA BE CAREFUL AS YOU THINK ABOUT THAT, ON HOW BROAD YOU WANT TO BE AND, AND HOW YOU WANT TO CLASSIFY THOSE PROJECTS.
SO THAT'S JUST SOMETHING TO THINK ABOUT.
THERE IS LEGISLATION, UM, SEVERAL PIECES OF LEGISLATION IN THIS SESSION THAT WOULD INCREASE THAT FREEZE PERIOD TO FIVE YEARS.
POTENTIALLY THE CITY UNDER CURRENT LAW, IF YOU HAD A FAILED ELECTION, COULD GO BACK TO THE VOTERS AND HAVE A NEW ELECTION AS SOON AS THE NEXT ELECTION CYCLE.
UM, BUT THERE ARE SEVERAL PIECES OF PROPOSED LEGISLATION THAT WOULD LIMIT HOW QUICKLY YOU COULD GO BACK TO THE VOTERS.
THERE'S SOME THAT SAY TWO YEARS, SOME THAT SAY FIVE YEARS, UH, BEFORE YOU COULD GO BACK ON THE SAME PROJECT.
SO IT WOULD BE, IT WOULD LOOK VERY MUCH LIKE THIS FREEZE FOR GOING BACK FOR A NEW BOND ELECTION.
SO IN, IN THE EVENT THAT THIS BOND WAS TO FAIL, THERE'S A FREEZE, LIKE YOU SAID, RIGHT? IS THERE A WAY THAT IT CAN BE WORDED TO WHERE IT'S NOT SPECIFICALLY STATED JUST FOR STREET OR IT IT COULD STILL COME BACK UP AGAIN BECAUSE LIKE I SPOKE TO SEVERAL PEOPLE AND THEY WERE CONCERNED BEING THAT THE STATE OF THE ECONOMY RIGHT NOW AND THE WAY THE MARKET'S GOING, THAT THEY'RE SKEPTICAL ABOUT VOTING FOR A BOND RIGHT NOW.
SO IS THERE A WAY THAT COULD BE WORRIED TO WHERE IT COULD STILL COME UP AS, UM, A NON VOTED DEBT? YEAH, SO WHAT YOU COULD, SO THERE, THERE, THERE ARE A NUMBER OF WAYS YOU CAN LOOK AT IT.
UM, I'VE SEEN ISSUERS THAT HAVE TAKEN A, THEY'VE SAID THE FOLLOWING STREET AND ROAD PROJECTS AND LISTED SPECIFIC WANDS, UM, AND BROKEN THEM UP INTO SEPARATE PROPOSITIONS AS, AS YOU'VE DONE THAT.
SO THAT'S ONE PROCESS THAT PEOPLE HAVE GONE THROUGH IN ORDER TO GIVE VOTERS A LITTLE BIT MORE, UM, OPPORTUNITY TO VOTE MORE INDIVIDUALISTICALLY ON THOSE.
UM, THERE ARE CHALLENGES THAT GO ALONG WITH THAT TOO, THOUGH, RIGHT? ON THE FLIP SIDE, SO YOU, YOU LOOK AT IT ARE, ARE THERE ANY EQUITY ISSUES THAT GO ALONG WITH BREAKING UP THE PROPOSITIONS LIKE THAT? IF YOU BREAK THEM UP IN THAT WAY AND ONE FAILS, CAN YOU REALLY LIVE, AND MAYBE IT'S ONE OF THE LESS POPULAR ONES THAT YOU'VE BROKEN OUT AND PUT IN ITS OWN PROPOSITION AND IT FAILS.
CAN YOU REALLY LIVE WITHOUT THAT PARTICULAR PROJECT FOR THREE TO FIVE YEARS? SO THERE ARE A LOT OF CONSIDERATIONS LIKE THAT, THAT GO, IT'S A LITTLE BIT MORE ART THAN SCIENCE, UM, AS, AS, UH, AS YOU LOOK AT THAT.
UM, AND SO THAT'S, THAT'S ONE OF THE, THAT'S ONE OF THE CHALLENGES IS HOW, WHAT'S THE BEST WAY TO PRESENT IT TO THE VOTERS? IS IT BETTER TO PACKAGE EVERYTHING IN A SINGLE PROPOSITION AND GO OUT AND GO AFTER IT, OR TO CREATE A LITTLE BIT OF, UM, OF, OF, OF OPPORTUNITY TO LOOK AT INDIVIDUAL PROJECTS? JOHN? YES, SIR.
I KNOW THAT, UH, LAST MEETING THEY KIND OF TALKED ABOUT THAT BALANCE BETWEEN FLEXIBILITY AND TRANSPARENCY.
AND PREVIOUSLY WE HAD TALKED ABOUT A FEW OTHER CITIES AND HOW THEY BOARDED THEIR BOND INITIATIVES AND, UM, I BELIEVE WE HAD, UH, DISCUSSED THAT WE COULD ACTUALLY GO TO THE AG TO GET, UM, I GUESS AN ADVANCED CLEARANCE OR AN UNDERSTANDING OF HOW THEY WOULD INTERPRET, UH, THE BOND VERBIAGE TO APPLY IF IT FAILS OR, OR PASSES, CORRECT.
SO THERE, IT'S, IT'S NOT UNUSUAL FOR US TO, AS YOU'VE COME UP WITH VARIOUS PROPOSITIONS OR A SUITE OF PROPOSITIONS THAT YOU WANT TO LOOK AT TO GO TALK TO THE AG IN ADVANCE OF CALLING THE ELECTION, UH, AND TO KIND OF WALK THROUGH THOSE PROPOSITIONS WITH THEM TO MAKE SURE ONE, THAT THEY'RE COMFORTABLE, THAT THE WAY WE'VE STRUCTURED THEM FITS WITHIN THE SINGLE SPECIFIC PURPOSE REQUIREMENT.
AND TWO, TO TALK ABOUT, HEY, THIS IS WHERE WE SEE THE LIMITS ON THESE.
IF THIS ONE WERE TO FAIL, THAT THIS IS WHAT WE WOULDN'T BE ABLE TO COME BACK WITH AND TALK ABOUT.
SO WE OFTEN DO HAVE THOSE DISCUSSIONS WITH EAG BEFORE THE PROPOSITIONS ARE APPROVED, UM, TO, TO GET A LITTLE BIT MORE CLARITY ON THAT AND GET COMFORT FOR COUNCIL ON, ON, UH, ON WHERE WE'RE GOING.
SO JUST, YOU KNOW, SINCE WE'RE TALKING ON THE SIDE BOND ELECTION FAILS, I HATE THAT WE'VE TAKEN THIS MUCH TIME ON THE FAILURE OF A BOND ELECTION, BUT IT IS A RISK THAT WE HAVE THAT WE DIDN'T HAVE IN THE PAST.
AND SO I THINK ALL THE, THE STRATEGY ON, ON HOW YOU WORD IT AND ALL THAT'S VERY IMPORTANT.
BUT BACK TO JOSEPH'S COMMENT, YOU KNOW, UM, WHAT WE HAVE TO BE ABLE TO DO AS A COMMITTEE IS RESPOND TO THAT PERSON THAT'S ASKING YOU OR, OR TELLING YOU THE ECONOMY.
THIS IS NOT A BOND ELECTION FOR THE ECONOMY TODAY.
IT'S A BOND ELECTION FOR SIX YEARS.
FOR THE NEXT SIX YEARS OF IMPROVING THE CITY OF BAYTOWN, WE'LL HAVE ANOTHER PRESIDENT WITHIN THAT PERIOD OF TIME, RIGHT? SO ANYONE WHO'S CONCERNED ABOUT THE ECONOMY TODAY, THEY HAVE A RIGHT TO BE CONCERNED.
AND I THINK THE CITY HAS DONE A GREAT JOB OVER THE LAST SEVERAL YEARS IN BRINGING THE OVERALL TAX RATE DOWN IN THIS, IN THIS CITY.
UH, IT'S, IT'S, IT'S BEEN PHENOMENAL.
UH, IT'S NEVER BEEN DONE LIKE THAT BEFORE.
WE'VE GOTTA BE ABLE TO EXPLAIN TO FOLKS WHEN THEY HAVE THAT CONCERN.
[00:30:01]
WORRY, BUT IT'S TO EXPLAIN HERE WE ARE TODAY THAT THIS IS A SIX YEAR PROCESS.AND, AND THEN YOU WILL KNOW, YOU'LL HAVE ALL THE AMMUNITION TO SAY, WE'RE WE'RE GONNA DO THIS AND WE'RE GONNA DO THIS, AND THIS IS GONNA IMPROVE OUR COMMUNITY, WHICH IS GONNA IMPROVE OUR ECONOMY.
THERE, THERE'S COLLATERAL BENEFIT TO A LOT OF THINGS THAT, THAT ARE ON THESE, ON THESE PROJECT LISTS THAT WE HAVE TO BE ABLE TO EXPLAIN TO FOLKS.
THAT'S WHY I WANT US TO NOT JUST KNOW WE'RE REPAIRING A STREET.
I WANT US TO KNOW WHAT'S GONNA BE GOOD ABOUT IT.
NOT THAT YOU JUST DON'T TEAR YOUR CAR UP, BUT WHAT'S GONNA BE GOOD ABOUT IT.
SO ALL THESE THINGS THAT, THAT YOU BROUGHT UP AND WE'RE TALKING ABOUT HERE ON THE TAIL END OF ALL THE EFFORT WE'RE GONNA MAKE TO GET TO THAT POINT.
MR. SANTO, THE OTHER THING I WOULD ADD, AND, AND JOE WILL SPEAK TO THIS IN A MINUTE, IS AGAIN, THESE BONDS AREN'T GONNA ALL BE ISSUED RIGHT AWAY, RIGHT? THIS IS A LONG TERM PROCESS THAT YOU'RE LOOKING AT AND JOE WILL TALK ABOUT HOW THEY LOOK AT STRUCTURING IT SO THAT YOU'RE ADDRESSING THOSE TYPES OF CONCERNS AND HOW YOU'RE STRUCTURING THE DEBT AND, AND KIND OF BRINGING IT TO MARKET AS WELL.
SO WE CAN JUMP TO THE NEXT, THE NEXT SLIDE HERE.
I, I WONDER IF YOU HAVE ANY DATA THAT BACKS UP, UH, CITIES LIKE THEM THAT ARE OUR SIZE AND DEMOGRAPHIC ON KIND OF THE LANGUAGE OF WHAT'S MORE LIKELY TO PASS? BECAUSE YOU CAN'T COMPARE LIKE THE CITY OF HOUSTON TO, LIKE THE CITY OF BAYTOWN WHEN IT COMES TO, OR CAN YOU? SO, I, I DON'T, I DON'T REALLY HAVE ANY DATA OFF HAND AND JOE, I DON'T KNOW THAT WE CAN, WE CAN GET ANY, BUT I, I KNOW THAT, UM, CITY BOND PROPOSITIONS HAVE A PRETTY HIGH PASSAGE RATE JUST KIND OF ALL THE WAY THROUGH THE PROCESS BECAUSE THE TYPES OF THINGS THAT YOU'RE VOTING ON FOR CITY PROPOSITIONS ARE KIND OF INFRASTRUCTURE NEEDS AS, AS YOU'RE RELATED TO 'EM.
I WOULD SAY THAT THE DIFFERENCE, LIKE SCHOOL DISTRICTS SINCE, SO SCHOOL DISTRICTS RECENTLY HAD A CHANGE WHERE THEY HAVE TO BREAK OUT CERTAIN THINGS AS INDIVIDUAL PROJECTS BEFORE THESE, AGAIN, LIKE I SAID EARLIER, HAD EVERYTHING ALL IN ONE.
NOW THEY BREAK OUT THINGS LIKE STADIUMS AND MORATORIUMS, AND WE'RE FINDING THAT THOSE HAVE VERY LOW PASSAGE RATES FOR STADIUMS AND AUDITORIUMS. BUT WHEN YOU'RE LOOKING AT KIND OF THE BLOCKING AND TACKLING INFRASTRUCTURE OF STREETS AND DRAINAGE AND THAT TYPE OF THINGS, THEY HAVE, THEY HAVE PRETTY HIGH P PRETTY HIGH PASSAGE RATES.
AND I JUST WANT, I KNOW MIKE'S JUMPING, GO BACK TO YOUR, JUST NOT GO BACK, BACK TO THE BALLOT LANGUAGE.
WE HAVE A COUPLE OF THESE, YOU KNOW, YOU, I, WE HAVE A COUPLE OF THESE, LIKE THE, THE RESURFACING THE STREETS LIST, A WHOLE BUNCH OF DIFFERENT STREETS THAT'S NOT GONNA BE IN THE BALLOT LANGUAGE.
IT'LL BE RESURFACED ON STREETS, I'M SURE.
GENERICALLY WHAT'S TO KEEP 'EM FROM CHANGING THE STREETS ONCE THAT PASSES IS SOURCE.
SO MIKE, I WOULD SAY IT BACK TO YOUR INITIAL POINT.
WE MAY STRUCTURE THE PROPOSITION SO THAT IT INCLUDES THE STREETS IN THE, IN THE PROPOSITION.
I MEAN, THAT'S SOMETHING WE'LL HAVE TO DISCUSS KIND OF AS A GROUP.
UM, THAT'S ONE OF THE CHANGES YOU'VE SEEN RECENTLY.
I MEAN, THERE'S SOME TEXAS COUNTIES THAT I'VE WORKED WITH THAT THEY'LL HAVE CATEGORIES OF STREETS THAT THEY MAY LAY OUT IN SEPARATE PROPOSITIONS AND MAY LIST CERTAIN THINGS OUT.
SO YOU CAN DO SOMETHING VERY GENERAL.
SO LET'S, LET'S LOOK AT THIS ONE WHERE WE TALK ABOUT DESIGN, CONSTRUCTION ACQUISITION EQUIPMENT OF DRAINAGE IMPROVEMENTS.
SO THIS IS ONE FROM AN ACTUAL CITY THAT RECENTLY DID A BOND ISSUANCE AND IT WAS FOR DRAINAGE IMPROVEMENTS AND IT WAS VERY BROAD.
UM, YOU COULD DO ONE OF THESE THAT SAYS FOR STREETS, YOU KNOW, FOR STREETS AND ROADS, AND IT COULD LOOK ALMOST EXACTLY LIKE THIS AND JUST BE FOR STREETS AND ROADS.
YOU COULD DO THAT AND THAT WOULD ALLOW YOU TO DO BASICALLY ANY STREET AND ROAD THAT'S IN THE CITY IF THAT'S WHAT YOU WERE, IF THAT'S WHAT YOU WERE GONNA DO.
UM, BUT YOU CAN ALSO STRUCTURE THE PROPOSITIONS DIFFERENTLY.
AND YOU CAN ALSO, I MEAN, JUST THE OTHER THING TO KEEP IN MIND IS THAT DEPENDING ON HOW IT'S STRUCTURED AND WHAT THE CONTRACT WITH THE VOTERS LOOKS LIKE, IF YOU, IF YOU PRESENT INFORMATION TO THE VOTERS AND SAY, WE'RE GONNA DO X, Y, AND Z AND THAT'S FORMALLY ADOPTED BY COUNCIL, THEN, THEN YOU'RE MORE RESTRICTED IN, IN WHAT YOU CAN DO.
I THINK, I THINK LANGUAGE ON THE BALLOT IS A LEGAL ISSUE.
I THINK MAYBE SOME OF THE CONCERN IS IF IT'S NOT SPECIFIC ON THE BALLOT, THEN IT MAY NOT GET DONE.
I THINK THAT'S, YOU KNOW, THE VOTERS ALREADY KNOW WHAT THEY'RE GONNA DO WHEN THEY GET TO THE VOTING BOOTH.
THEY'RE NOT GONNA READ THE BALLOT LANGUAGE.
THEY'RE GONNA GO BASED ON WHAT THEY HAVE BEEN TOLD AND COMMUNICATED AND EDUCATED ON, UH, STARTING WITH US AND THE WORK WE'RE DOING.
CITY COUNCIL'S GONNA RECEIVE A LIST OF, OF PROJECTS THEY'RE GONNA APPROVE TO RECOMMEND GOING OUT FOR A GEO BOND.
IT'S DOCUMENTED, IT'S WRITTEN, IT'S THERE, AND, AND IT WILL HAPPEN.
THEY'LL BE HELD ACCOUNTABLE TO THAT.
SO YOU CAN'T WRITE EVERY SINGLE STREET IN, IN THE BALLOT LANGUAGE, BUT YOU NEED TO BE, THE LEGAL SIDE OF IT IS ENOUGH TO BE CLAR TO CLARIFY WHAT YOU'RE DOING, NOT SO MUCH TO, TO RESTRICT YOURSELF A HUNDRED PERCENT.
SO, SO WE GOT TWO DIFFERENT REASONS FOR
[00:35:01]
BALLOT LANGUAGE.THAT'S, THAT'S ABSOLUTELY TRUE.
YOU'VE GOTTA HAVE THAT BALANCE.
YOU'VE GOTTA HAVE SOME FLEXIBILITY IN ORDER TO ADDRESS, ADDRESS THOSE NEEDS.
THOSE, I THINK A LOT OF THE CONCERN IS DOING WHAT, YOU KNOW, BUT AGAIN, THAT'S WHY YOU'RE DOING THIS PROCESS.
YOU'RE TELLING THE PUBLIC, LIKE, COUNSEL HAS YOU WORKING ON THIS PROCESS BECAUSE THEY WANT A TRANSPARENT, RIGHT, THOUGHTFUL PROCESS THAT LAYS OUT WHAT, WHAT IT'S BEING RECOMMENDED THAT THEY DO.
AND TO, TO YOUR POINT, YES MA'AM, AREN'T WE GONNA DO THAT LATER ON DOWN THE ROAD AFTER WE GO THROUGH THE RANKING TO DO THE BALLOT DAMAGE? I, I DON'T KNOW HOW THAT, I DON'T KNOW HOW SPECIFICALLY THAT'S GONNA WORK.
I THINK THERE, THERE MAY BE RECOMMENDATIONS AND THEN OFTEN IT GETS TURNED OVER KIND OF TO LEGAL AND ADMINISTRATION TO WORK THROUGH THOSE PARTICULAR ISSUES.
'CAUSE THAT GETS TO BE VERY TECHNICAL AND OFTEN GETS VERY TECHNICAL AND DEALING WITH THE AG ON HOW THAT'S DONE.
SO IT'S TAKING THE RECOMMENDATIONS KIND OF FROM THIS GROUP AND UNDERSTANDING TO MR. SANTANA'S POINT EARLIER, UNDERSTANDING WHAT THE RECOMMENDATION IS AND THEN HOW WE STRUCTURE IT TO ENSURE THAT THAT RECOMMENDATION GETS REFLECTED.
OKAY, SO I THINK WE'RE GOING HERE AND THAT'S WHERE JOE JOE PICKS UP.
UH, JOE MORROW WITH HILLTOP SECURITIES, WE SERVE THE CITY AS MUNICIPAL ADVISOR, WHICH MEANS WE HELP AND MANAGE THE DEBT PORTFOLIO OF EXISTING DEBT AND ALSO GOING OUT FOR NEW DEBT.
SO THE QUESTION WHERE, WHERE, WHAT I WAS TASKED WITH IS, YOU KNOW, WHAT ARE SOME PARAMETERS OF WHAT THIS MIGHT COST US, UH, BASED ON VARIOUS LEVELS.
SO SETTING A TAX RATE IS A FAIRLY EASY PROCESS BECAUSE EACH FALL, WHEN THE CITY GOES INTO, UH, THEIR BUDGET SESSION, THE APPRAISAL DISTRICT IS GOING TO SEND THEM A CERTIFIED BALLOT, RIGHT? THAT SAYS OF THE ENTIRE CITY, WHAT'S IN HARRIS COUNTY, WHAT'S IN CHAMBERS COUNTY.
YOU ADD IT TOGETHER, THAT'S YOUR VALUE THAT YOU'RE GOING TO USE PER A HUNDRED DOLLARS TO SET YOUR TAX RATE.
THE NEXT THING THAT YOU HAVE IS YOUR DEBT SERVICE.
THAT'S A FIXED AMOUNT, RIGHT? SO YOU MAKE A DIVISION OF THAT.
YOU HAVE A COLLECTION RATE THAT YOU APPLY AND THERE'S YOUR TAX RATE.
IT'S HOW DO WE GET TO THOSE TWO BIG NUMBERS, THE BIG NUMBERS BEING THE ASSESSED VALUE, AND THE SECOND ONE BEING WHAT IS OUR DEBT SERVICE FOR THAT YEAR? SO THOSE ARE THE TWO ITEMS THAT REALLY DRIVE IT.
SO THERE'S NOT MUCH THE CITY CAN DO TO CONTROL, UH, THE VALUE.
THEY CAN PROVIDE INCENTIVES, UH, FOR PEOPLE TO COME.
WE WANT TO LOCATE HERE, WE WANT TO LIVE HERE.
YOU HAVE, UH, RESIDENTIAL COMMUNITIES THAT ARE GROWING, YOU KNOW, EAST HARRIS COUNTY IS GROWING.
UM, BUT THE VALUE COMES IN FROM, UH, HARRIS COUNTY IN CHAMBERS COUNTY.
Y'ALL PROBABLY HAVE GOTTEN YOUR NOTICE.
IF YOU'RE A HOMEOWNER IN THE MAIL, THIS IS YOUR VALUE.
YOU HAVE THIS AMOUNT OF TIME TO FILE AND YOU CAN PROTEST YOUR VALUE.
SO THAT'S WHERE WE ARE RIGHT NOW IN THIS PROCESS, RIGHT? THEY'RE GONNA CERTIFY THIS.
HARRIS COUNTY'S HUGE, RIGHT? THE COUNTY IS ABSOLUTELY HUGE AND IT TAKES A FEW WEEKS MORE SO USUALLY BY ABOUT MIDGUT IS WHEN THE CITY GETS THAT VALUE.
UH, BUT THAT'S ONE OF THE KEY DRIVERS.
WHAT WE DO WHEN WE'RE LOOKING AT, UH, WHAT IS OUR TAX IMPACT GONNA DO? AND WHAT I DID FOR THE ANALYSIS THAT I RAN IS YOU HAVE SOME TAX INCREMENT REINVESTMENT ZONES, RIGHT? SO THERE'S A VALUE THAT AS IT GROWS, UH, THAT MONEY IS REINVESTED INTO THAT SPECIFIC AREA.
SO WE TAKE THAT INCREMENT VALUE OUT, WE SAY THAT'S NOT GONNA APPLY TO OUR DEBT.
ONE OF THE THINGS THAT I ALSO LOOKED AT, YOU'VE HAD TREMENDOUS GROWTH HERE, UH, OVER THE LAST FIVE YEARS.
IT DOESN'T GO LINEAR LIKE THAT BECAUSE LIFE ISN'T LINEAR.
BUT WHAT IT HAS DONE, YOU'VE HAD, UH, ONE YEAR WHERE IT JUMPED AND IT WAS UP 16% ANOTHER YEAR IT WAS DOWN SOMEWHERE AROUND 3%, YOU KNOW, SEVEN, EIGHT.
BUT THAT AVERAGE IS ABOUT 9.35%.
AND I TOOK, UH, YOUR VALUES BY CATEGORY.
WE HAVE ABOUT 20 OR SO CATEGORIES AND SUBCATEGORIES THAT THE APPRAISAL DISTRICTS PUT YOUR VALUE IN.
THINK RESIDENTIAL, MULTI-FAMILY, COMMERCIAL, INDUSTRIAL, AND, AND THERE'S SPLITS OFF THAT RAW LAND.
UH, SO WE PUT ALL OF THAT, UH, I PUT ALL OF THAT
[00:40:01]
TOGETHER.I LOOKED AT, UH, WHAT KIND OF TREND ANALYSIS WE HAD GOING ON AND, UH, PROJECTED OUT ANOTHER SIX YEARS OF VALUE, RIGHT? AND ODDLY ENOUGH, WHEN I TOOK OUT SOME OF THE ANOMALIES, GUESS WHAT WE WERE LIKE RIGHT AT THAT, UH, 9% GROWTH RATE.
SO THAT'S WHAT I USED IS, UH, THAT, NOW THINK ABOUT THIS BECAUSE THAT MAKES A HUGE DIFFERENCE FOR COUNCIL IN WHAT, IN WHAT THEY'RE GONNA DO IN TERMS OF IMPLEMENTING THEIR BOND PROGRAMS. VALUE IS ALWAYS SUBJECT TO CHANGE, RIGHT? BECAUSE WHAT DO, WHAT DO BIG, UH, INDUSTRIAL CUSTOMERS DO? THEY'VE GOT TEAMS OF LAWYERS THAT ARE GONNA FILE PROTEST EVERY YEAR NO MATTER WHAT.
THAT'S JUST PART OF BUSINESS FOR THEM.
AND THAT HAPPENS, AND THAT CAN DELAY THINGS.
THEY'LL STILL HAVE TO PAY TAXES, BUT MAYBE SOMETHING SETTLED A YEAR OR TWO LATER AND YOU KNOW, YOU GOTTA GIVE IT BACK.
SO WE HAVE TO MAKE, UH, ADJUSTMENTS FOR THAT.
UH, THERE'S ALL KINDS OF THINGS THAT CAN, UH, IMPACT THE VALUE.
AND THE POINT IS, UH, FROM DAY TO DAY, THAT VALUE IS CHANGING, RIGHT? AS DIFFERENT THINGS COME IN, UM, UH, YOU KNOW, ON THE TAX ROLLS, UM, FROM OUR ANALYSIS, AGAIN, I ASSUME SOMETHING RIGHT AROUND THAT NINE, UH, PERCENT PLUS, UH, RATE, AND WE RAN IT OUT FOR SIX YEARS.
NOW, DEBT, HERE'S OUR OTHER BIG NUMBER, UH, EXISTING DEBT STRUCTURE, RIGHT? AND WHAT I'M LOOKING AT HERE IS WHAT IS THE DEBT THAT YOU HAVE? UH, NOT THAT JUST HAS A PLEDGE OF TAXES, BUT YOU ACTUALLY USE TAXES TO PAY, RIGHT? THE CITY, UH, USES SOME CERTIFICATES OF OBLIGATION, WHICH HAS A TAX PLEDGE, AND THEY USE IT TO DO WATER AND SEWER, WATER AND SEWER REVENUES PAYS IT.
IT'S A GOOD WAY FOR THE CITY TO GET, UH, THE BEST INTEREST RATE, NOT HAVE TO MESS WITH THE RESERVE FUND AND UH, UH, BUILD THE INFRASTRUCTURE THAT YOU NEED ON THE WATER AND SEWER SIDE.
A LOT OF CITIES DO THIS, UM, NEW DEBT STRUCTURE, OKAY? WHAT WE'RE LOOKING AT HERE, WHETHER IT'S A HUNDRED MILLION OR 300 MILLION, HOW ARE WE GONNA STRUCTURE THAT DEBT? WE COULD DO A DECLINING STRUCTURE, A LEVEL STRUCTURE, WE CAN CHANGE THE TERM, RIGHT? WE CAN DO 10 YEAR DEBT.
TENURE DEBT IS HARD, BUT SOME PEOPLE DO IT.
UH, 15, 20 YEAR DEBT IS THE AVERAGE.
ONE OF THE THINGS THAT WE'LL BE LOOKING AT IS WHAT PROJECTS DO YOU HAVE? WHAT ARE YOU GONNA BE, UH, BUILDING? IF YOU'RE GONNA BE BUILDING, YOU KNOW, A FIRE STATION OR SOMETHING ALONG THOSE LINES, I'D BE INCLINED TO SAY, LET'S DO THAT 30 YEARS.
IT'S A BUILDING, IT'S GONNA BE IN SERVICE FOR MORE THAN 30 YEARS.
UM, JUST LIKE A MORTGAGE, RIGHT? WHEN YOU GO IN TO DO A MORTGAGE, IT DOESN'T MATTER IF YOUR HOME, HOME IS, YOU KNOW, LIKE WHEN I GOT MINE, IT WAS BUILT IN 83.
WE STILL PUT A 30 YEAR MORTGAGE ON IT.
UM, BUT THAT'S SOMETHING THAT WE'RE GONNA LOOK AT IS THE TERM AND THE PROJECTS.
FOR RIGHT NOW, EVERYTHING IS 20 YEARS AND LEVEL DEBT.
OKAY? WE'RE GONNA HAVE A FIXED RATE, RIGHT? WE'RE NOT GONNA, UH, DO ANY KIND OF A VARIABLE RATE BOND WHEN WE SELL IT, WE'RE GONNA LOCK IN OUR RATE.
IT'S NOT GONNA CHANGE, UH, INTEREST RATES.
WE'LL, WE'LL LOOK AT A, I'VE GOT A GRAPH HERE, UH, TO SHOW YOU OF WHAT'S HAPPENED TO THE INTEREST RATES HERE, UH, IN THE LAST, UH, SIX WEEKS OR SO, KIND OF SURPRISING.
BUT, UH, ONE OF THE THINGS WITH INTEREST RATES THAT WE GET, WE PUT AN OPTION IN, RIGHT? WE ALWAYS BUILD IN AN OPTION TO PREPAY OUR DEBT.
THE MARKET WILL LET US DO 10 YEARS.
RIGHT NOW WE'RE DOING NINE YEARS.
SOMETIMES WE CAN GET AWAY WITH EIGHT YEARS OF AN OPTION TO PREPAY, RIGHT? WITHOUT HAVING TO PAY AN ADDITIONAL INTEREST RATE TO GET THAT OPTION.
WHAT THAT ALLOWS US TO DO IS REFINANCE THAT DEBT IF WE NEED TO, OR, UH, YOU KNOW, IF YOU HAD SOME REASON THAT YOU WANTED TO PREPAY SOME DEBT, LIKE YOU HAD A LOT MORE MONEY THAN YOU THOUGHT FOR SOME REASON, YOU CAN EXERCISE THAT OPTION TO, UH, REDUCE YOUR DEBT SERVICE.
FOR OUR ANALYSIS, AGAIN, WE DID 20 YEAR LEVEL DEBT WITH A FIXED RATE AND, UH, I ASSUMED A NINE YEAR CALL OPTION.
YOU HAD A QUESTION OVER HERE? OH, I DO.
WHO HAD A QUESTION? UM, I FORGOT.
YEAH, WE, WE'VE GOT SOME TIME.
WE'LL, WE'LL, I'M SURE TOUCH ON THE GENERAL TOPIC.
SO, UH, THIS IS A GRAPH OF WHAT, UH, UH, YOUR
[00:45:01]
AV GROWTH WOULD, WOULD BE FROM HERE, 2025 OVER, THIS IS HISTORICAL, RIGHT? AND THEN WHEN WE APPLIED THE 9% GROWTH RATE, THIS IS WHAT, WHAT WE LOOKED AT.NOW, AGAIN, THIS IS COMPLETELY LINEAR, RIGHT? I CAN DRAW RIGHT THROUGH THE CENTER OF THAT, EVERY ONE OF THEM, AND IT WOULD, UH, BE A SLOPED LINE.
THAT WOULDN'T CHANGE, THAT'S NOT LIFE.
THAT'S SOMETHING THAT THE COUNCIL IS GONNA HAVE TO DEAL WITH.
UH, YOU KNOW, LIKE I SAID, MAYBE IT'S UP, WE DO A BIGGER BOND ISSUE THAT YEAR.
MAYBE THERE'S A LOT OF THINGS THAT IMPACT HOW BIG OUR BOND ISSUE IS GONNA BE BECAUSE, YOU KNOW, MAYBE IT'S A PROJECT THAT, UH, IS A LARGER PROJECT, RIGHT? MAYBE IT'S A COUPLE SMALLER ONES, BUT ONE'S GONNA BE SLOWER.
THAT'S SOMETHING, HOW WE BRING IT TO MARKET, UM, IS DEPENDENT UPON A LOT OF TIMES WHAT PROJECTS WE'RE DOING AND WHAT THOSE CASH FLOW NEEDS ARE.
I ASSUMED FOR SIMPLE PURPOSES, IF WE WERE GONNA DO A HUNDRED MILLION, WE DO IT OVER FIVE YEARS AT 20 MILLION A POP, RIGHT? AGAIN, THAT'S NOT REALITY, BUT THAT GETS US IN WHERE WE CAN SAY, YOU KNOW, GENERALLY WHAT ARE WE LOOKING AT HERE? CAN WE DO THIS? UM, QUESTION.
THIS CHART, THIS IS THE REVENUE, RIGHT? WROTE TAX REVENUE.
THIS IS, THIS IS NOT TAX REVENUE, THIS IS TAX VALUE, RIGHT? WE WOULD APPLY A TAX RATE AGAINST THIS RIGHT HERE.
WE'D BE UP ABOVE 10 BILLION, RIGHT? OKAY.
CURRENTLY VALUE COMMERCIAL AND RESIDENTIAL HOMES.
OKAY? I GUESS I'M HAVING A HARD TIME UNDERSTANDING.
I MEAN, THERE'S A DIRECT, DIRECT RELATIONSHIP BETWEEN THAT VALUE.
THE TAX RATE GOES TO THIS VALUE AND THAT'S WHAT BRINGS IN THE REVENUE FOR THE CITY.
ANYTHING ELSE BEFORE I JUMP TO THE NEXT SLIDE? HERE WE GO.
THIS IS YOUR, THE CITY'S EXISTING DEBT THAT IS PAID WITH ADVIL TAXES.
OKAY? UH, LOOK AT THIS NATURAL DECLINE THAT WE HAVE ALL THE WAY OUT, UH, TO 2029.
WE'RE DROPPING AND THEN WE HOLD STEADY.
THAT'S, THAT'S A LAYUP, RIGHT? WE'VE GOT OUR DEBT SERVICE GIVING US CAPACITY THAT WE CAN UTILIZE WITHOUT HAVING A TAX IMPACT, RIGHT? 'CAUSE IT'S, IT'S JUST, IT'S THERE WAITING FOR US TO, UH, ADD ADDITIONAL DEBT.
WHEN WE GET OUT HERE, THAT PRESENTS A LITTLE BIT OF AN ISSUE AND THAT'S WHERE OUR TAX IMPACT COMES IN.
AND IN A SLIDE OR TWO, WE'LL GET THERE AND YOU'LL SEE.
AND THAT IS WHY, UH, UH, REMEMBER THIS SECTION RIGHT IN HERE WHERE WE GET FLAT, WE DON'T HAVE THE DECLINES.
UH, DOES ANYBODY HAVE ANY QUESTIONS ON THE EXISTING DEBT? REALLY? I JUST WANTED Y'ALL TO SEE, UH, YOU KNOW, THAT WE HAVE THE DECLINE.
SO THAT SLIDE JUST SHOWS THAT THE DEBT THAT THE CITY HAS IS FALLING OFF.
A GOOD TIME TO COME IN WITH NEEDS.
SO AS THE GROWTH WILL CONTINUE TO GROW, RIGHT? YEAH.
SO THE CITY'S IN GOOD FINANCIAL POSITIONS.
YOU'VE GOT TWO THINGS GOING FOR YOU THAT WILL PROVIDE CAPACITY, DECLINING DEBT STRUCTURE, AND THE EXPECTATION OF AN INCREASE IN, UH, YOUR VALUE, RIGHT? BECAUSE WITH, YOU KNOW, YOU, YOU SEE IT MORE THAN I DO, BUT EAST HARRIS COUNTY IS GROWING AND, UH, AND THAT GROWTH SHOULD CONTINUE.
SO ANYTHING ELSE READY TO TALK ABOUT YIELDS? SO THIS, ACCORDING TO THIS, WE'RE CURRENTLY AROUND 14 MILLION IN DEBT.
IS THAT WHAT IT SAYS? UM, THAT'S, THAT'S RIGHT.
UM, I DON'T YOU MEAN AN ANNUAL PAYMENT? I DON'T HAVE THAT, UH, EXHIBIT, YEAH.
ANNUAL PAYMENT, RIGHT? ANNUAL PAYMENT IS ABOUT, IS JUST NORTH OF 14 MILLION.
I THINK WE'VE, WE'VE BUDGETED FOR THIS YEAR AROUND 15 MILLION WITH, UH, UH, PLANNED ISSUANCE FOR THIS YEAR.
SO THE ACTUAL DEBT IS PROBABLY MORE ON THE 200 MILLION, 300 MILLION RANGE.
IF OUR PAYMENTS ARE ABOUT 14TH, 180 6, I BELIEVE.
WHEN YOU LOOK AT ALL OF YOUR GROSS DEBT AND, UH, THERE, I DIDN'T BRING THE CASH FLOW PAGE AND I DON'T THINK THAT I WOUND UP GETTING THAT SENT TO YOU.
UH, BEFORE I CAN SEND IT TO GILBERT TO SEND OUT TO THE COMMITTEE.
WHEN, WHEN, WHEN WE LOOK AT GROSS DEBT, EVERYTHING
[00:50:01]
WITH, UM, THAT WE PAY WITH UTILITY REVENUE AT AS WELL.TOO MUCH INFORMATION IN SMALL WRITING.
UM, GROSS DEBT, THE CITY HAS ABOUT 220 MILLION, BUT A LOT OF THAT, APPROXIMATELY HALF OF THAT IS GONNA BE UTILITY DEBT SERVICE AND, UH, NOT PAID WITH TAXES.
AND SOME THAT'S PAID WITH SALES TAXES, RIGHT? SOME PARK DEBT THAT'S PAID THAT WAY.
SO, UM, I'LL GET YOU THAT SPLIT OUT.
UH, WE HAVE, AND I JUST DON'T HAVE IT IN MY POCKET HERE.
I APOLOGIZE FOR THAT YIELD CURVE ANALYSIS.
OKAY? UM, THIS RED ONE IS Y'ALL'S, THIS IS BASED ON CREDIT SPREADS.
OKAY? THIS IS INVESTMENT GRADE BAA, THIS IS AN A, THIS IS AA, THAT'S WHAT Y'ALL ARE.
AND THIS IS AAA, BUT REMEMBER I MENTIONED YOU'VE GOT A CALL OPTION AND WE PUT A CALL OPTION IN THERE AND I ASSUMED A NINE YEAR CALL OPTION.
WELL, SO WHAT, WHAT DOES THAT MEAN? THAT'S HOW WE MANAGE YOUR DEBT PORTFOLIO, RIGHT? BECAUSE WHEN WE SELL BONDS, IF WE HAD SOMETHING THAT MATURED IN 2050, WE SLIDE UP, UH, NINE YEARS LATER, AND GUESS WHAT? JUST BECAUSE OF THE SHAPE OF THE YIELD CURVE, WE HAVE MOVED THAT UP SO THAT WE SHOULD HAVE A LOWER YIELD AND THE POSSIBILITY TO REFINANCE THAT AND SAVE MONEY.
SO THAT'S PART OF THE ONGOING MAINTENANCE PRO PROGRAM THAT WE REVIEW.
THE CITY CURRENTLY HAS SOME CALLABLE DEBT, BUT YOU'LL SEE ON THE NEXT SLIDE WE'VE HAD A SPIKE.
AND THE OTHER THING IS THINK ABOUT, UH, YOU KNOW, EIGHT YEARS AGO OR NINE YEARS AGO FROM NOW, RATES WERE LOW.
WE WERE SELLING THINGS WITH, YOU KNOW, 3% COUPONS, THINGS LIKE THAT.
UH, IT'S A DIFFERENT, UH, YOU KNOW, WE GO THROUGH EBBS AND FLOWS, RIGHT? WITH THE ECONOMY AND INTEREST RATES, BUT, UH, THE YIELD CURVE AND ITS SHAPE CAN BE A NATURAL WAY FOR US TO SAVE MONEY, UH, UH, BY REFINANCING OVER TIME.
AND NOW, DOES ANYBODY HAVE ANY QUESTIONS ON THE YIELD CURVE? WE'RE GOOD.
WE, UH, THIS IS A 20 YEAR HISTORY, RIGHT? OF GENERAL OBLIGATION INTEREST RATES TAKEN, A WEEKLY DATA POINT, OKAY? AND, UH, THIS IS JUST A BASKET OF HIGHLY TRADED, UH, BONDS LIKE CITY OF NEW YORK AND CALIFORNIA, STATE OF TEXAS, THEY WIND UP BEING IN THERE.
BONDS THAT ARE VERY LIQUID, THAT HAVE, UH, A LOT OF DEBT OUTSTANDING AND LIQUID BEING THEY'RE TRADED, RIGHT? THEY'RE ACTIVELY TRADED.
AND, UH, ALL OF A SUDDEN WE, UM, WE START GETTING SCARED BECAUSE, UH, WE'RE TALKING ABOUT TARIFFS AND, AND RATES HAVE JUMPED WAY UP HERE.
THE MARKET PANICS, RIGHT? THE MARKET PANICS, AND WE HAVE BIG THESE BIG SPIKES UP.
AND THEN GUESS WHAT? WE DRIFT DOWN, WE DRIFT DOWN, WE DRIFT DOWN HERE.
WE HAD A LITTLE BIT MORE OF A, A, A KIND OF A DOUBLE SPIKE, AND THEN WE DRIFTED AWAY DOWN.
WE'RE GONNA DRIFT DOWN OFF OF THIS, RIGHT? UM, THIS DRIFT DOWN OCCURRED FROM, UH, OVER A TWO, THREE YEAR PERIOD, YOU KNOW, SO, UH, WHILE RATES ARE HIGH NOW, THAT'S NOT GONNA BE THE CASE, I DON'T THINK IN, YOU KNOW, TWO YEARS OR SO WHEN WE'RE READY TO BEGIN, UH, ISSUING THE FIRST PIECE OR, UH, EVEN A, A YEAR, UH, IT IS GONNA BE A DIFFERENT MARKETPLACE.
BUT, UH, THAT'S, UH, WE SEE THIS IN THE MARKETS QUITE FREQUENTLY THAT WE HAVE, UH, SPIKE UP AND THEN A DRIFT DOWN.
YOU KNOW, THIS BEING AN ANOMALY HERE.
BUT, UH, IF WE WERE TO LOOK AT OUR AVERAGE RATE, LOOK HOW HIGH WE ARE HERE, AND OUR AVERAGE RATE IS PROBABLY SOMEWHERE RIGHT IN HERE, YOU KNOW, WITH THREE 50 OR SO, AND WE'RE UP ABOVE 5%, WE'RE NOT GONNA STAY THERE FOR LONG.
THINGS WILL CHANGE AND, AND WE'LL, UH, REVERT BACK TO THE AVERAGE.
UM, SO I, I JUST, I REALLY WANTED Y'ALL TO SEE, YOU KNOW, THE IMPACT NOW BECAUSE THE, THE QUESTION HAD COME UP OF, YOU KNOW, WELL, PEOPLE ARE WORRIED ABOUT THE ECONOMY RIGHT NOW.
[00:55:01]
SUN'S GONNA COME UP TOMORROW AND THINGS ARE GONNA BE DIFFERENT AND THEY'RE GONNA IMPROVE.SO, UH, SO HERE WE GO, UH, I TOLD JOEL ABOUT MY MAIN ASSUMPTIONS, RIGHT TERM.
I JUST DIVIDED EVENLY AGAINST EACH OF THESE AMOUNTS, RIGHT? SO THIS WAS 20 MILLION, 30 MILLION, UH, 50 MILLION.
AND THIS ONE WAS LIKE, UH, 65.
I THINK I HAD ONE 70 MILLION IN THERE TOO.
BUT SAME AMOUNT OF GROWTH INTEREST RATE THAT I USED WAS FOUR 50.
IF WE WERE SELLING RIGHT NOW TODAY, WE'D PROBABLY BE SOMEWHERE AROUND A 4 25, MAYBE A FOUR 30.
UH, CITY OF SUGAR LAND DOWN THE WAY, SOLD ABOUT THREE WEEKS AGO.
OKAY, ON 50 MILLION, RIGHT? 20 YEAR DEBT.
THEY'RE, THEY'RE A NATURAL AAA.
Y'ALL ARE A DOUBLE A, RIGHT? YOU'RE A DOUBLE A ONE, AS I REMEMBER.
UM, WE USED A FOUR 50, RIGHT? UH, WE THINK YOU'RE GONNA BE LOWER THAN THAT.
BUT TO BE CONSERVATIVE, THIS IS WHAT WE DID.
A HUNDRED MILLION, NO INCREASE, PROJECTED FOR FIVE INSURANCES, 150 MILLION, NO INCREASE.
PROJECTED 250 MILLION, ONE PENNY.
AND GUESS WHAT? THAT HAPPENED LATE IN THE GAME, RIGHT? REMEMBER WHERE I SHOWED YOU WE'RE DECLINING AND THEN WE GO FLAT? FLAT, THAT'S WHERE WE CAUGHT THE PENNY WHEN WE WENT FLAT AND WE WERE HITTING OUR LAST TWO BOND ISSUANCES, ONE PENNY ON THE TAX RATE INCREASE PER A HUNDRED, PER, PER HUNDRED.
IF YOU, IF THE TAX RATE WAS 10 CENTS, IT WOULD GO TO 11.
AND I CAN CONVERT THAT FOR YOU AS TO WHAT THAT WOULD MEAN, UH, UH, FOR A HOUSE, UH, OR, OR SOMETHING LIKE THAT, YOU KNOW? UM, SO THAT'S GOOD INFORMATION.
BUT, UH, THE, THE THING I WANTED, WANTED TO POINT OUT HERE, AS YOU GO HERE, 80 MILLION, THAT ADDITIONAL 80 MILLION, LOOK AT THAT, ANOTHER FIVE AND A HALF PENNIES ON TAX RATE.
AND THAT'S BECAUSE WE HIT THAT FLAT POINT, RIGHT? WE'RE NO LONGER DECLINING.
NOW THIS, I THINK I CAN MAKE THAT ONE PENNY GO AWAY.
IF EVERYTHING ELSE HOLDS, YOU KNOW, IF OUR VALUE HOLDS, I CAN MAKE THAT ONE PENNY GO AWAY, BECAUSE WHY? WE'RE GONNA HAVE SOME PROJECTS THAT WE CAN EXTEND.
MAYBE WE'LL DO 'EM 25, MAYBE IT'LL BE A BUILDING.
THE OTHER THING, UH, I MEANT TO POINT THIS OUT TO YOU ON THE YIELD CURVE.
TEND TO GET FLAT OUT ON THE LONG END, RIGHT? SO YOU DON'T PAY A WHOLE LOT MORE IN INTEREST RATE.
THE PROBLEM THAT THERE IS OR ISSUE IS THE BALANCE BETWEEN A LONGER TERM AND THE TOTAL AMOUNT OF INTEREST THAT YOU PAY, RIGHT? BUT THAT'S WHERE THE VALUE OF THE CALL IS.
THAT'S WHY WE PUT THAT EMBEDDED OPTION IN SO WE CAN PAY IT OFF.
AND, UH, YEAH, SO YOU HEAR HOW WE GET SO FLAT OUT AT THE END, BUT REMEMBER, WE'RE PUSHING UP EVERY YEAR THAT GOES BY AND MOVING DOWN THE YIELD CURVE.
AND AS RATES FALL, WE CATCH IT AT A GOOD TIME.
LONG TERM DOESN'T HELP US RIGHT NOW WHEN WE'RE IN THIS ROOM.
WHAT IT DOES IS HELP THE PEOPLE IN THE ROOM 10 YEARS FROM NOW THINKING ABOUT THE NEXT BOND ELECTION, UM, BACK TO HERE.
SO, YOU KNOW, I THINK, YOU KNOW, YOU'RE SOMEWHERE, UH, AROUND 250 MILLION, I THINK WE CAN WORK THAT DOWN TO PROBABLY, UH, BE A NO INCREASE.
IT'S GONNA GET TOUGHER TO DO 330 MILLION WITH NO INCREASE.
YOU'RE GONNA HAVE TO, WE CAN LOOK AT IT ONCE WE HAVE A PROJECT LIST AND KIND OF MAKE SOME DETERMINATIONS, TALKS WITH TAX COUNSEL, BUT THAT'S A HEAVY LIFT GIVEN WHAT WE KNOW AND WHAT WE THINK ARE FAIRLY CONSERVATIVE ASSUMPTIONS AT THIS POINT.
IF YOU HAVE ANY QUESTIONS ON THAT, I WOULD, YOU KNOW, I'M, I'M HERE TO TALK AS, AS YOU'VE HEARD, I, I WILL TALK.
THANK YOU FOR THAT CHART, BECAUSE IT'S VERY HELPFUL TO KIND OF KNOW WHERE YOU CAN LOOK AT THE PROJECTS AND, AND BY MANY WISE, WHAT THE TAX RATE'S GONNA AFFECT.
SO I THANK YOU FOR DOING THAT.
DOES ANYBODY HAVE ANY OTHER QUESTION FOR ME? USUALLY PEOPLE'S I'S, ARE CROSSED ABOUT RIGHT NOW.
YOUR BRAIN'S A LITTLE SCRAMBLED, AND SO IT TAKES A LITTLE WHILE TO
[01:00:01]
PROCESS ALL THIS.YOU'VE, YOU'VE GOTTEN A LOT OF INFORMATION IN 60 MINUTES AND, UH, UH, AND THANK Y'ALL FOR THE DEDICATION YOU'RE DOING.
JUST FROM THE SIDE, YOU MAY NOT HAVE THESE FIGURES, BUT IN PAST BOND ELECTIONS, WHEN YOU'VE MADE THESE PROJECTIONS, HAVE THEY CLOSELY FOLLOWED PRETTY MUCH AS FAR AS THE TAX INCREASES? YEAH.
YOU KNOW, UH, UH, JONATHAN MENTIONED A CONTRACT WITH, WITH VOTERS, RIGHT? MM-HMM
I CAN TELL YOU, UH, RIGHT NOW, WE'VE ALWAYS BEEN ABLE TO, TO MEET THAT.
ONE OF THE REASONS IS WE DO CONSERVATIVE ASSUMPTIONS.
LIKE A FOUR 50 RATE IS WHAT, UH, WHEN I FIRST STARTED IN THIS BUSINESS, SOME 30 PLUS YEARS AGO, WE WERE DOING ABOVE 5%, RIGHT? WE HAVEN'T BEEN SELLING BONDS ABOVE 5% FOR, UH, INVESTMENT GRADE CREDITS IN A LONG, LONG TIME.
SO DOESN'T MEAN THAT COULDN'T HAPPEN AGAIN, BUT, UH, I THINK THIS IS PRETTY CONSERVATIVE.
SO BARBARA, THIS GOES BACK TO THE CONVERSATION.
THE QUESTION THAT JOHN ASKED AND TO, UH, UH, GILBERT WAS TALKING ABOUT.
SO, AND JONATHAN MENTIONED AS WELL, IF, IF THIS BOND COMMITTEE SAYS, HEY, WE WANT TO GO UP TO 200 MILLION BECAUSE THERE'S NO TAX INCREASE PROPOSED WITH THAT, AND THEN IT HAS TO GO BACK TO COUNCIL EACH TIME THAT THEY ISSUE ANY DEBT, THE ADVISORY COMMITTEE THAT IS HELPING RECOMMEND TO THE CITY COUNCIL WILL THEN SAY, HEY, THESE PROJECTS STAY WITHIN A NO TAX RATE INCREASE.
IT'S TIME TO CALL THE BOND FOR THESE PROJECTS AND STAY WITHIN A NO TAX RATE INCREASE.
SO THAT'S HOW THIS COMMITTEE STAYS INVOLVED WITH ENSURING THAT YOU'RE MEETING THE INTENT OF, UH, WHAT THE FINANCIAL ADVISOR AND EVERYBODY'S PUTTING TOGETHER HERE TO SAY, WE ARE PROPOSING THESE PROJECTS AT THIS TIME TO STAY WITHIN THIS STRUCTURE SO THERE'S NO TAX RATE INCREASE.
THIS LEMME TELL YOU FOLKS, THIS RIGHT HERE, YOU DON'T SEE THIS HAPPEN.
KEN CAN TELL YOU EVERY TIME THERE WAS A GOOSE CREEK BOND CALL, THEY WERE FORECASTING A LOT OF INCREASE IN YOUR TAX RATE ON THE INTEREST IN SINKING PART OF YOUR TAX RATE.
YOU DON'T SEE THIS VERY OFTEN WHERE YOU HAVE CAPACITY BUILT IN.
AND I'M NOT GONNA TALK LOT ABOUT THIS RIGHT NOW 'CAUSE WE'RE GONNA BE FACED WITH THIS DOWN THE ROAD, NO INCREASE PROJECTED IN THE TAX RATE, BUT WE'RE GOING TO BE FACED WITH THIS IS A TAX INCREASE TO THE TAXPAYERS, OKAY? BECAUSE IF WE WEREN'T ISSUING THIS DEBT, THE CITY COULD LOWER THE TAX RATE.
SO, BUT THE VOTERS ARE GONNA VOTE ON THIS.
AND SO EVEN THOUGH THERE'S NO TAX RATE INCREASE, AND WE'RE CHALLENGED THAT THIS IS A TAX INCREASE.
'CAUSE IF WE WEREN'T DOING IT, THE TAX RATE WOULD GO DOWN, THE VOTERS ARE GONNA GET, HAVE A SAY SO ON THAT, RIGHT? BUT WHAT'S GONNA BE A WHOLE LOT EASIER FOR US IS THAT THERE WILL NOT BE AN INCREASE IN THE TAX RATE, RIGHT? WE'RE NOT GOING UP 5 CENTS, 10 CENTS, 15 CENTS.
AND I'VE SEEN THOSE PROJECTIONS AND, YOU KNOW, THEY, THEY DO A VERY GOOD JOB OF BEING CONSERVATIVE ON ALL THESE PROJECTIONS.
THAT'S, THAT'S WHAT THEY'RE SUPPOSED TO DO.
UH, THEY SHOULDN'T BE COMING IN HERE AND TRYING TO SQUEEZE IN SO WE CAN SELL IT.
THAT'S, THAT'S NOT WHAT WE WANT.
WE WANNA MAKE SURE THE NUMBERS ARE CONSERVATIVE, THEY'RE THE EXPERTS, YOU KNOW, WE, WE, WE CAN HAVE QUESTIONS.
THEY'RE THE ONES THAT KNOW WHAT'S GOING ON.
SO I WANT TO, I WANT TO JUST THANK THE PRESENTERS THAT WE HAD TODAY BECAUSE ALL OF THIS INFORMATION IS IMPORTANT FOR US TO KNOW WHAT'S GONNA HAPPEN ON THE BACK END.
EVERY ONE OF THESE PRESENTATIONS STARTED WITH A BOX, RIGHT? A BOX THAT WAS EITHER THE TOP OF THE SCREEN OR THE LEFT SIDE OF THE SCREEN WE'RE THAT FIRST BOX.
WE'RE THE FIRST BOX IN ALL THIS.
EVERYTHING THAT HAPPENS FROM THAT FIRST BOX ON IS AFTER WE'RE FINISHED, IS AFTER WE MAKE A RECOMMENDATION TO CITY COUNCIL.
BUT IT'S IMPORTANT FOR US TO KNOW WHAT HAPPENS AFTER WE FINISH.
AND SO WHAT I WANNA STRESS IS WHAT I SAID AT THE BEGINNING OF THE MEETING IS THAT FIRST BOX IS GONNA DETERMINE WHETHER THIS IS SUCCESSFUL OR NOT.
THE, THE WORK WE PUT INTO UNDERSTANDING EVERY ONE OF THESE PROJECTS, YOU KNOW, JUST BECAUSE WE'VE GOT, YOU KNOW, TWO 50 AND, AND, AND ONLY OPINION, WE THINK WE CAN SELL IT.
I THINK WHAT WE WANT TO END UP WITH, UM, WHEN WE COMPLETE OUR OUR WORK IS A RECOMMENDATION THAT HAS SOME OPTIONS WITH IT.
WE DON'T WANT TO GIVE CITY COUNCIL, HERE'S THE LIST.
WE TIE THEIR HANDS, YOU KNOW, THEY'RE MAKING THE DECISION.
THEY'RE THE ONES THAT HAVE THE AUTHORITY TO MAKE THAT DECISION.
WE DON'T, ALL WE HAVE THE OPPORTUNITY TO DO IS MAKE A RECOMMENDATION, BUT IT'S GONNA BE A RECOMMENDATION BASED ON ALL THE HARD WORK WE
[01:05:01]
PUT INTO COMING UP WITH WHAT THAT LIST IS AND THE DOLLAR VALUES FOR EVERYTHING I MENTIONED AT THE BEGINNING THAT, THAT, UM, ROAD RECONSTRUCTION CAN BE SIMPLE, RIGHT? IT CAN, IT CAN BE, HEY, WE WE'RE GONNA SPEND $5 MILLION TO FIX THE STREET.THE CONSTRUCTION'S NOT EASY TO LIVE WITH, RIGHT? YOU CAN'T GO TEARING UP EVERY STREET IN BAYTOWN AND DO 'EM ALL AT ONCE.
THERE HAS TO BE A SCHEDULE, THERE HAS TO BE A, A PLAN, LOGISTICAL PLAN TO HOW YOU'RE GONNA GO INTO DIFFERENT PARTS OF, OF THE CITY AND START TEARING UP ROADS.
AND THAT'S A VERY IMPORTANT PART OF WHAT THE CITY WILL DO IN ALL THIS LOGISTICAL SCHEDULING, RIGHT? FOR US, IT'S TO UNDERSTAND THAT THIS ROAD, I THINK I'VE SHARED THIS, THIS ANALYSIS WITH SOMEBODY, UM, BACK IN, UH, 2007, THE LAST JOE BOND.
PICK A, PICK A STREET IN AN OLD NEIGHBORHOOD IN TOWN.
JUST PICK ONE STREET OUT OF 10 OR 12 THAT ARE IN THAT NEIGHBORHOOD.
WHEN THE CITY RECONSTRUCTED THAT STREET, I CAN TELL YOU WE HAVE PICTURES SIX MONTHS LATER, PEOPLE'S YARDS WERE BEING KEPT UP.
THEY WEREN'T PARKING THEIR CARS IN THE FRONT YARD.
THAT WAS BEFORE THE ORDINANCE.
THEY WEREN'T, THEY TOOK PRIDE IN THEIR STREET AND THEN YOU GO ONE STREET OVER THAT STILL LOOKED LIKE IT WAS ALL BEAT UP AND THE YARDS LOOKED THE SAME, RIGHT? THEY WERE JUST ALL BEAT UP.
THERE'S A LOT OF COLLATERAL VALUE TO IMPROVING STREETS.
SO IT'S NOT JUST SIMPLY, WE'RE GONNA MAKE IT NOT BUMPY ANYMORE.
AND WHERE YOU DON'T BLOW YOUR TIRE OUT.
WHAT I, WHAT I WANT US TO UNDERSTAND IS THAT EVERY SINGLE PROJECT THAT WE, WE RECOMMEND TO CITY COUNCIL, WE HAVE THAT SAME LEVEL OF KNOWLEDGE AND CONFIDENCE THAT IT IS GONNA IMPROVE THE QUALITY OF LIFE FOR THE CITIZENS OF BAYTOWN.
AND IF WE DON'T BELIEVE IT, THEN WE'RE NOT GONNA GET ANYBODY ELSE TO BELIEVE US.
NOW, I CAN'T TELL YOU THAT I'VE LOOKED AT THESE PROJECTS, I DON'T HAVE ANY FEELINGS ON 'EM.
I DON'T KNOW WHY I WOULD TRY TO RANK SOMETHING THAT I DON'T UNDERSTAND YET.
AND SO I WOULD JUST ASK YOU TO DO THE SAME THING.
THE CITY HAS GIVEN US THIS LIST AND, AND I'M GONNA ASSUME THAT EVERYTHING ON THIS LIST BRINGS VALUE TO THE CITY OF BAYTOWN.
KEEP AN OPEN MIND ON EVERY PROJECT THAT'S ON THERE UNTIL YOU UNDERSTAND IN DETAIL WHAT THAT PROJECT'S ABOUT.
WHETHER IT'S A STREET, WHETHER IT'S, IT'S A DRAINAGE IMPROVEMENTS FOR AN ENTIRE AREA, UH, WHETHER IT'S IT'S A PARK UPGRADE, WHETHER IT'S A, A FIRE STATION, WHATEVER IT IS, JUST, JUST KEEP AN OPEN MIND ON THERE IS A NEED OR THAT PROJECT WOULDN'T BE ON THE LIST.
WE CAN GET TO THE END OF THE ROAD.
AND AT SOME POINT IT'D BE LIKE, WELL, IT'D BE NICE IF WE COULD DO THAT.
IT'S NEEDED, BUT IT WOULD BE NICE.
WE'RE GONNA FIND THOSE PROJECTS, WE'RE GONNA COME TO THAT CONCLUSION.
WE'RE GONNA REALIZE IT'S GREAT.
BUT THE REALITY OF IT IS WHEN YOU PUT IT, UM, ON EVERYTHING ELSE, IT'S, IT MAY NOT MAKE THE CUT, RIGHT? SO I'M JUST ASKING EVERYBODY AT THIS POINT TO KEEP AN OPEN MIND.
WE'VE GIVEN BEEN GIVEN A LOT OF INFORMATION.
THE FIRST COUPLE OF MEETINGS THIS SESSION WAS VERY INFORMATIONAL.
I CAN TELL ALREADY BY THE QUESTIONS THAT WERE ASKED TODAY THAT, THAT YOUR MIND IS THINKING ABOUT THIS AND WE NEED TO ASK THOSE QUESTIONS.
THE CONSULTANTS WILL HAVE AN ANSWER, AND IT SHOULD BE AN ANSWER THAT HELPS YOU UNDERSTAND.
SO YOU CAN EXPLAIN WHEN SOMEONE ASKS YOU AND YOU CAN EXPLAIN WITH CONFIDENCE WHEN SOMEONE ASKS YOU.
THAT'S WHAT WE'RE REALLY TRYING TO GET TO HERE.
WE HAVE A SMALLER GROUP THAN WHAT WE'VE HAD IN THE PAST, BUT THAT DOESN'T MEAN WE CAN'T DO A LOT OF WORK.
I'M GONNA RECOMMEND, UH, BEFORE OUR NEXT MEETING, I'M GONNA ASK THAT THEY GET TO SIT DOWN WITH THE CITY STAFF.
UH, AND WHAT I'D LIKE TO DO IS CONSIDER BREAKING THIS GROUP UP INTO TWO GROUPS.
AND I WOULD LIKE TO GIVE ONE GROUP MAYBE ALL THE STREET PROJECTS TO, TO, TO, TO GO THROUGH AND ASK QUESTIONS, BE PRESENTED TO, AND ASK THE OTHER GROUP TO LOOK AT BUILDINGS AND, AND THE, THE PARK SIDE AND, UH, ANYTHING ELSE, WHATEVER MAKES SENSE.
AND THEN WE CAN JUST SHARE WHAT WE'VE, WHAT WE'VE LEARNED.
I THINK WE GET MORE VALUE AND SMALLER GROUP SETTINGS WHERE WE CAN HAVE MEANINGFUL DIALOGUE.
THESE TYPE OF SETTINGS ARE GREAT FOR THE BIG QUESTIONS AND AND SO ON.
BUT WE CAN'T GET INTO THE DETAILS OF THIS SIZE OF GROUP.
WE'LL, WE'LL, WE'LL HAVE QUESTIONS THAT WE WON'T REALLY BE ABLE TO GET TO.
SO IF, IF WE TOOK, AND I'M JUST, YOU KNOW, IF WE JUST TOOK HALF THE GROUP AND, AND IF YOU HAVE AN INTEREST, SEND ME, SEND ME A NOTE.
HEY, I WANT, I WANNA BE ON THE STREET ONE OR I'LL BE IN THE PARKS ONE OR WHATEVER.
UH, WE'LL, WE WILL FIGURE OUT HOW TO DIVIDE THIS UP AND CONQUER A LITTLE BETTER AND THEN COME TOGETHER AND SHARE WHAT WE LEARNED.
YOU KNOW, I WOULD EXPECT THAT, YOU KNOW, JOSEPH GETS INTIMATE ABOUT SOMETHING AND HE GOES, MAN, LEMME TELL YOU ABOUT THIS PROJECT HERE.
AND MAYBE SOMEBODY ELSE DIDN'T HAVE THAT SAME IN DEPTH KNOWLEDGE, RIGHT? AND, AND I THINK EACH OF US WILL HAVE THE OPPORTUNITY TO GET EMOTIONAL AND CONNECTED TO THESE PROJECTS.
THEY WOULDN'T BE HERE IF THEY, IF THEY WEREN'T IMPORTANT, BUT WE KNOW THEY MAY NOT ALL MAKE THE CUT, RIGHT? IT, IT'S JUST THE WAY IT WORKS.
[01:10:01]
SO IS THAT THE STATE GILBERT, THAT WE'RE, WE'RE GOING TO GO AWAY WITH THE TURNING IN RANKING SHEETS NEXT MONDAY.WE'RE NOT GOING TO, WE'RE NOT GONNA TURN IN RANKING SHEETS NEXT MONDAY.
OKAY? I HAD A GOOD CONVERSATION.
DO YOU WANNA ADDRESS ALL THAT RIGHT NOW? I THINK WE SHOULD.
I, I HAD A GOOD CONVERSATION WITH, UH, WITH CITY MANAGER AND ASSISTANT CITY MANAGERS AND, YOU KNOW, FOR US TO RANK SOMETHING BEFORE WE TRULY UNDERSTAND WHAT IT'S ABOUT.
I DON'T SEE THE VALUE YOU'RE RANKING BASED ON WHAT YOU THINK IT'S, OR HOW MUCH MONEY IT IS OR WHAT PART OF TOWN IT'S IN.
I THINK WE NEED TO UNDERSTAND, UH, THESE PROJECTS, UM, TAKE ALL THIS OTHER STUFF OFF THE TABLE AND LET'S JUST LOOK AT THE MERIT OF THE PROJECT AND WHAT IT DOES FOR THE CITY OF BAYTOWN.
UM, I KNOW THERE WAS A SCHEDULE PUT TOGETHER WHERE WE'RE GONNA HAVE FOUR MEETINGS.
THIS IS THE THIRD, WE'RE NOT GONNA GET THERE WITH ONE MORE MEETING.
UM, THERE WAS A, THERE WAS A A, A BIG WINDOW BETWEEN, YOU KNOW, UH, EARLY JUNE AND AUGUST WHEN COUNSEL HAS TO CALL IT.
I THINK WE NEED TO TAKE THE APPROPRIATE TIME.
I THINK IF WE NEED A TOUR OF SOMETHING, IF WE NEED TO GO LOOK AT SOMETHING, PUT OUR EYES ON IT, I THINK WE NEED TO SCHEDULE THAT FOR A MEETING.
AND LET'S, LET'S GO TAKE A LOOK AT THE FACILITIES THAT, THAT ARE ON THIS LIST AND, AND BETTER UNDERSTAND WHAT THE NEED IS.
UM, WE, WE HAVE AN OPPORTUNITY RIGHT NOW TO DO SOMETHING THAT THAT HASN'T BEEN DONE IN THE CITY FOR 18 YEARS, AND I'M JUST TELLING YOU.
AND THAT'S TO GAIN THE TRUST OF OUR CITIZENS, GAIN THE TRUST OF OUR CITIZENS, RIGHT? YES.
I JUST WANT TO SAY, UM, I, I LIKE THAT WE'RE TAKING A LITTLE BIT LONGER BECAUSE WE'RE FACING ENOUGH FULL BATTLE, RIGHT? WITH WITH VOTERS.
UM, THEY'RE GONNA BE ASKING, HOW'S THIS GONNA IMPACT ME, RIGHT? AT THE END OF THE DAY, RIGHT? UM, AND THE MORE WE CAN TALK ABOUT WHAT, HOW THAT'S GONNA IMPACT AND THIS INFORMATION AT THE END OF THE DAY, LIKE THEY'RE GONNA, IT MATTERS HOW MUCH, IF THERE'S A KNOWING OR NO TAX RATE INCREASE, OR IF THERE IS.
UM, SO THIS IS EXTREMELY IMPORTANT AND I THINK, UM, I WOULD LIKE TO PERSONALLY SEE THE ROADS.
UM, EVEN IF IT DOESN'T AFFECT ME DIRECTLY, YOU KNOW, I WANT THE ROADS OF CITY OF ACON TO BE RIGHT IN A GOOD, IN A GOOD POSITION.
SO, UM, I I, I WOULD LIKE TO GO ON A RIDE ALONG AND WITH SOMEONE THAT KNOWS THE ROAD CONDITION AND CAN EXPLAIN TO ME THE NEED SO THAT WHEN I GET ASKED, UH, INFORMATION ON THAT, I CAN SPEAK ON IT.
I WANT TO, I, I'LL SHARE A LITTLE BIT AND I, AND I DON'T WANNA KEEP TALKING ABOUT THE PAST.
I KNOW I'M AN OLD GUY AND IT WAS 18 YEARS AGO, LIKE AS SOME OF YOU GUYS, UH, ANYWAY, BUT, BUT LET ME TELL YOU HOW WE HANDLED THE ROADS.
LAST TIME I SHARED THIS BEFORE THERE WAS $30 MILLION IN THE BOND FOR ROAD RECONSTRUCTION.
THIS IS A NEW ROADS, THIS IS EXISTING ROADS THAT NEED TO BE REPAIRED.
THERE'S A PAVEMENT CONDITION INDEX, RIGHT? THE CITY KNOWS THE CONDITION OF THE ENGINEERING ASSESSMENT OF EVERY ROAD IN THE CITY OF BAYTOWN.
AND LIKE I SAID EARLIER, IT SIMPLY WAS WHAT'S THE WORST AND WHAT DOES IT COST? AND GO DOWN THE LIST TILL YOU GOT THE 30 MILLION.
YOU CAN EXPLAIN THAT TO ANYBODY IN TOWN, RIGHT? IT'S PRETTY STRAIGHTFORWARD, WORST, ALL THE WAY DOWN TO WHAT WAS $30 MILLION WORTH OF ROAD WORK OVER THE, OVER THE PERIOD OF THE BOND, RIGHT? THAT'S PRETTY STRAIGHTFORWARD.
WE DID THE WORST STREETS IN BAYTOWN.
I DON'T KNOW WHERE THESE STREETS FALL ON THE PAVEMENT CONDITION INDEX.
I THINK THEY'RE, THEY'RE BAD AND I THINK THEY'RE, THEY'RE STRATEGICALLY, UH, IDENTIFIED AND ALL THOSE THINGS ARE IMPORTANT.
BUT IF THEY'RE NOT THE WORST AND IT'S NOT SIMPLY THE WORST TO A DOLLAR AMOUNT, THEN WE NEED TO KNOW WHY THE STREET'S ON THE LIST, RIGHT? SO I, I, I APPRECIATE YOU WANTING TO DIG IN AND KNOW A LITTLE BIT MORE.
UM, THIS IS GONNA COME DOWN TO, UH, MARGARET, EVERYBODY YOU TALKED TO BELIEVE IN WHAT YOU'RE SAYING AND THAT YOU KNOW WHAT YOU'RE TALKING ABOUT.
AND THAT'S THE SAME FOR EVERYBODY HERE, THAT YOU KNOW, YOU KNOW WHAT YOU'RE TALKING ABOUT.
YOU'VE SPENT ENOUGH TIME WITH THIS PROCESS AND LOOKING AT ENOUGH DETAILS TO SAY, I CAN BACK THIS PROJECT, RIGHT? I KNOW THE IMPACT.
I KNOW WHAT HAPPENS IF IT DOESN'T GET APPROVED, RIGHT? YOU'LL KNOW THE IMPACT.
WE'RE NOT, WE'RE NOT ALL GONNA GO MOVE AWAY AND ALL THAT KINDA STUFF, BUT IT'S GONNA IMPACT US NEGATIVELY IF SOME OF THESE THINGS DON'T GET DONE.
I THINK WHAT I'VE SEEN WITH THIS PRESENTATION HERE IS I THINK, I THINK SOME GUARDRAILS HAVE COME OFF.
I I THINK EARLY ON THERE WERE SOME IMPOSED GUARDRAILS MAYBE BY SOME FOLKS, YOU KNOW, THAT THERE WAS SOME DOLLAR LIMIT WE, WE WERE WORKING WITH AND, AND, AND WHEN THAT'S THE CASE, MAN, YOU CAN GET TO THAT REAL QUICK.
WE, WE COULD DO THAT PRETTY QUICKLY.
BUT, YOU KNOW, I BELIEVE WHAT WE WANT TO END UP WITH IS GIVEN CITY COUNCIL A RECOMMENDATION THAT WE ALL BELIEVE IN.
AND YOU KNOW, I MADE THE COMMENT THE OTHER DAY IS WE'RE NOT GONNA VOTE.
NOT EVERYBODY'S GONNA AGREE ON EVERYTHING, BUT WE'RE NOT GONNA VOTE.
WE'RE JUST GONNA HAVE TO AGREE BY CONSENSUS THAT
[01:15:01]
WE CAN, WE CAN SUPPORT THE PACKAGE THAT GETS PUT TOGETHER IN THE END, WHATEVER IT IS.YOU MAY NOT AGREE WITH SOMETHING ON THAT LIST WHOLEHEARTEDLY, BUT YOU CAN AGREE THAT OKAY, I CAN LIVE WITH IT, RIGHT? WE GOTTA LOOK AT THE BIGGER PICTURE HERE.
CAN YOU LIVE WITH MOST OF IT? AND IF YOU CAN, WE NEED TO AGREE.
ONE OF THE THINGS THAT HAPPENS WHEN YOU VOTE IS YOU NOW HAVE PEOPLE WHO DON'T SUPPORT WHATEVER GETS ON THE LIST.
AND, AND THE FOLKS WHO DIDN'T VOTE FOR THAT, THEY LOST ANYBODY HERE PARTICIPATE IN THE GOOSE CREEK CISD BOND, RECENT BOND OR TWO, WERE YOU ASKED TO VOTE, WERE YOU ASKED TO VOTE ON WHETHER SOMETHING WENT ON THERE? YES.
RIGHT? AND IT DIDN'T REALLY MEAN ANYTHING.
THEY DIDN'T, RIGHT? SO HERE AGAIN, WHAT WE NEED TO SHOW THE PUBLIC IS THAT WHAT WE'RE DOING MEANS SOMETHING THAT THAT'S, THAT'S IMPORTANT RIGHT THERE, JOHN.
WHEN YOU COME OUT OF THAT PROCESS AND IT REALLY DIDN'T MEAN ANYTHING AND YOU WERE THERE ALL THAT TIME, SPENT ALL THAT TIME AND EFFORT GOING THROUGH THINGS AND YOU BELIEVE THE COMMITTEE MEMBER BELIEVES IT DIDN'T MEAN ANYTHING, WHAT DO YOU THINK THE PUBLIC'S GONNA THINK? WE GOTTA KNOW THAT WHAT WE DID HERE MEANT SOMETHING.
AND IF WE DON'T THINK IT MEANS ANYTHING, THEN, THEN THE PUBLIC'S NOT GONNA BELIEVE US, RIGHT? SO THIS IS A SMALL GROUP.
KEITH'S BEEN ON THIS BEFORE, MIKE'S BEEN ON THIS BEFORE.
I KNOW, UH, YOU KNOW, KEN'S BEEN THROUGH A LOT OF THE, THE GOOSE CREEK SIDE.
WE'VE GOT SOME, UH, YOU KNOW, FORMER REGION HERE WHO HAS SEEN IT FROM THE ELECTED OFFICIAL SIDE, THE CITY COUNCIL SIDE, KEN FROM THE, FROM THE BOARD OF TRUSTEES SIDE, LEE COLLEGE REGENT SIDE.
I MEAN, JUST LIKE THE ELECTED OFFICIALS WE'RE GONNA PRESENT SOMETHING TO, THEY NEED TO KNOW WHAT WE DID.
THEY NEED TO KNOW EVERY HOUR WE SPENT LOOKING AT THIS STUFF.
AND WE DIDN'T JUST SAY, I DON'T LIKE THAT ONE.
WELL, YOU DIDN'T EVEN KNOW WHAT IT WAS, RIGHT? YOU CAN, YOU MAY NOT LIKE IT IN THE END, BUT AT LEAST KNOW WHAT YOU'RE NOT LIKING, RIGHT? SO I HOPE OUR NEXT MEETING, UH, IT'S GOING TO BE A LITTLE BIT MORE HANDS-ON.
I'M NOT AWARE OF ANY MORE BIG PICTURE STUFF WE GOTTA BE PRESENTED.
I THINK WE'LL COME IN MORE OF A WORK SESSION FOR US.
UH, WE'LL TRY TO GET THE INFORMATION OUT AS EARLY AS POSSIBLE TO YOU SO YOU HAVE SOMETHING TO LOOK AT BEFORE YOU GET HERE AND IT DOESN'T HIT YOU COLD.
YEAH, WE'RE GONNA TRY TO DO THAT.
AND, UH, YOU DON'T HAVE TO KNOW OR LET ME KNOW TODAY OR ANYONE KNOW WHAT, WHAT YOU WANT TO, WHAT PART YOU WANT TO LOOK AT.
EVERYBODY HAS AN INTEREST IN EVERYTHING AND WE'LL GET TO SEE EVERYTHING.
IT'S NOT LIKE IF YOU WEREN'T ON THE STREETS WHEN YOU'RE NOT GONNA KNOW ABOUT STREETS.
WE'RE, WE'RE, WE'RE GONNA CROSS, WE'RE GONNA CROSS THAT INFORMATION BACK AND FORTH, BUT I THINK, YOU KNOW, FIVE OR SIX PEOPLE HUDDLED UP AND ASKING QUESTIONS ABOUT SPECIFIC PROJECTS CAN, CAN GET A LOT MORE DETAIL ON 'EM THAN, YOU KNOW, 15 IN A LARGE ROOM.
SO WE'RE, WE'RE GONNA TRY TO GET INTO MORE OF A WORK SESSION MODE THE NEXT MEETING.
UH, AND, AND WHAT I'M GONNA TELL YOU ALSO, IF YOU MISS A MEETING, YOU WON'T GET, YOU WON'T BE BEHIND IF YOU MISS A MEETING, WE'LL, WE'LL GET YOU CAUGHT UP.
WE'LL GIVE YOU THE INFORMATION, WE'LL, WE'LL TELL YOU WHAT HAPPENED AND, UM, AND WE'LL GET SOME MILESTONE MEETINGS, YOU KNOW, ON THE CALENDAR SO YOU KNOW THAT, HEY, THIS IS WHERE WE'RE GONNA REALLY TRY TO BE PULLING THIS TOGETHER, DOING THE BEST YOU CAN TO BE THERE.
SO, UM, I, I'D LIKE TO ADD FROM WORKING WITH GILBERT ON FOUR BONDS YEAH.
ON THAT COMMITTEE AND THEN TWO THAT HE WASN'T ON.
IF, IF YOU DON'T BUY INTO THE PROCESS, THIS PROCESS, THEN YOU'RE NOT GONNA BUY INTO THE PROJECTS OR BUY INTO BEING ANSWERED TO ANYBODY IN THE COMMUNITY.
AND, AND WE ALL KNOW THERE'S NOBODY SITTING IN THIS ROOM MAKING NOTHING KNOW THAT WE'RE NOT GONNA HAVE SOME OPPOSITION TO A BOND.
WE KNOW THERE ARE PEOPLE IN THIS COMMUNITY, THEY DON'T CARE WHAT IT IS.
THEY'RE NOT GONNA SPEND ONE DAMN TIME.
BUT TYPICALLY THESE PROJECTS ARE THINGS THAT NEED NORTH ROAD.
IF YOU WANT TO CONTINUE TO LIVE WITH GARTH ROAD, DON'T OPEN THE BOND.
OKAY? SO THE PROCESS, YOU HAVE TO BUY INTO THE PROCESS.
AND, AND AT THE END OF THE DAY, THERE'S A CONSENSUS.
THE LAST BOND THAT WE DID IN THE CITY OF 17 YEARS AGO, THERE WERE A LOT OF ITEMS ON THERE THAT I VOTED AGAINST THEM IN COMMITTEE AND SOME OF 'EM GOT PASSED.
OKAY? UH, BUT I BOUGHT INTO SUPPORTING THEM BECAUSE OF THE PROCESS THAT WE TOOK TO GET TO THAT POINT.
UM, I WILL TELL YOU, GOOSE CREEK'S LAST BOND, I WAS ON THE BOND OVERSIGHT COMMITTEE.
OUR LAST MEETING WAS LAST WEEK, SUPPOSED TO BE FIVE YEARS.
IT WAS SIX YEARS, ALMOST SIX YEARS.
I'VE BEEN ON THE BOND OVERSIGHT COMMITTEE WITH THAT.
AND THERE WERE CHANGES IN THAT BOND AT THE END OF THE BOND BASED UPON CONSTRUCTION PRICES AND ALL KIND OF THINGS.
BUT, BUT THE, BUT THE, THE GENERAL CONTENT OF THAT BOND WAS COMPLETED AND IT WAS DONE.
AND WE ENDED UP TURNING OVER FOUR AND A HALF MILLION DOLLARS BACK TO THE BOARD THIS LAST WEEK IN BOND INTEREST SALES TO MAKE, DO SOME OTHER THINGS.
I, I FEEL LIKE PART OF THE REASON THE LAST TWO BONDS DIDN'T PASS WAS BECAUSE PEOPLE DIDN'T BUY INTO THE PROCESS.
IT, THE WAY THEY WERE PRESENTED, THE PRE-BOND MEETINGS AND THE WAY THEY WENT THROUGH IT, AND THERE WERE A LOT OF GUARD ROLLS PUT ON 'EM.
[01:20:01]
IT WAS, IT WAS A LOT OF WHAM BAM, WHAM, BAM, GOTTA DO THIS, GOTTA GET, AND THEY DIDN'T TAKE THE TIME TO GO THROUGH THE PROCESS IN ORDER TO GET A BOND OUT THE DOOR.AND THEY SAID BOTH OF 'EM FAILED.
BOTH OF 'EM FAILED IN THE PROCESS.
AND, AND I THINK THE WAY YOU ELIMINATE THAT, IF YOU DO EXACTLY WHAT GILBERT SUGGESTING IS, YOU TAKE THE TIME.
AND IF WE DON'T GET THERE, WE DON'T GET THERE.
BUT IF YOU, WELL, IF YOU DON'T TAKE THE TIME, THEN WE'RE NOT GONNA, YEAH.
AND WHILE I WANT TO DECLARE, I'M NOT CRITICIZING GOOSE CREEK'S, CISD I'M JUST USING IT AS A COMPARISON.
IF YOU'VE BEEN THERE, I, I WANT YOU TO FEEL THAT THIS IS NOT GONNA BE THE SAME WAY, OKAY? AND I'M GLAD YOU SIGNED UP FOR THIS 'CAUSE I THINK YOU EXPECTED IT NOT TO BE THE SAME WAY, RIGHT? OR ELSE YOU WOULDN'T HAVE SIGNED UP.
WHY, WHY WOULD YOU GO THROUGH THAT AGAIN IF IT WAS GONNA BE THE SAME THING? SO I'M NOT CRITICIZING GOOSE CREEK, YOU KNOW, THINGS EVOLVE.
UM, IT, IT'S JUST, IT'S THE WAY IT HAPPENS.
AND, AND AT SOME POINT IT'LL ALL GET PULLED BACK TO A DIFFERENT WAY OF DOING THINGS.
THAT, THAT AGAIN GAINS THE PUBLIC TRUST.
SO THAT'S WHAT WE'RE HERE FOR.
EVERY, THE PUBLIC'S GONNA HAVE TO TRUST EVERY ONE OF US.
YOU'RE HERE, YOU'RE HERE FOR A PURPOSE.
WELL, YOU SIGNED UP, RIGHT? YOU SIGNED UP.
AND SO IF, IF YOU WANT TO BE PART OF SOMETHING SUCCESSFUL, SOMETHING THAT YOU'LL BE PROUD OF, THEN WE GOTTA PUT SOME TIME INTO IT.
IF IT WERE EASY, WE COULD HAVE JUST COME IN RANKED, GAVE 'EM A NUMBER AND GONE HOME, RIGHT? NO BIG DEAL.
UH, I DON'T CARE IF IT RAISES THE TAX RATE OR NOT, WE OUGHT TO BE JUST AS, AS EXCITED ABOUT PRESENTING SOMETHING, UH, YOU KNOW, AND GETTING BEHIND IT EVEN IF IT DOESN'T RAISE A TAX RATE.
WE, WE GOT, WE GOTTA FIGHT FOR THIS.
SO, UH, I'M GONNA OFFER, I THINK, UH, WE'RE, WE'RE GONNA, WE'RE ABOUT OUT OF TIME.
I'M GONNA OFFER, UH, ANYBODY, I DON'T KNOW EVERYBODY AS WELL AS I DO SOME, IF YOU WOULD LIKE TO SIT DOWN AND VISIT WITH ME, I'D BE GLAD TO VISIT WITH YOU ANYTIME.
UH, AND I'LL MAKE SOME TIME TO, TO SIT DOWN AND, AND MAYBE TALK ABOUT SOME THINGS.
UH, IF YOU HAVE ANY QUESTIONS, UH, BRIA, I'D LIKE TO GET WITH YOU.
UH, UH, SO I CAN, YOU AND I CAN, CAN TALK A LITTLE BIT MORE.
UH, AND I'D BE GLAD TO VISIT WITH ANYBODY.
SO I I, I'M LOOKING FORWARD TO THIS RIDE.
IT, IT MAY MAY BE A DIFFERENT RIDE THE CITY WAS THINKING ABOUT, BUT, BUT WE'RE GONNA MAKE IT A GOOD RIDE AND, AND GET AND, AND PROVIDE A GOOD PRODUCT TO CITY COUNCIL.
SO I ASSUME SOMEBODY'S TAKING MINUTES NOW SINCE WE DECIDED THE LAST MEETING.
ARE WE GONNA SEE YOU IN THOSE MEETINGS SOON? I MEAN, WE'RE INTO GOING INTO THE THIRD MEETING.
HAVEN'T SEE ANYTHING ELSE, JUST WONDERING.
ANYBODY HAVE ANY FINAL QUESTIONS? ANY, ANY QUESTIONS OR COMMENTS FROM ANYONE? I WANNA THANK THE CITY STAFF THAT ARE HERE AND, UH, GILBERT, CAN WE GET CLARITY ON THE TAKEAWAYS FOR THE NEXT MEETING SINCE WE'RE, WE ARE RESTRUCTURING HOW WE WERE PLANNING ON DOING THINGS.
AND SO THE NEXT MEETING Y'ALL ARE GONNA GO INTO GROUPS.
Y'ALL WOULD LIKE SOME MORE PROJECT SYNOPSIS, UH, MORE DETAIL ON THOSE PROJECTS SO THAT WE CAN HAVE MORE, UH, MORE DETAILED DISCUSSIONS.
YEAH, AND I'LL GET WITH YOU IN DETAIL ON THAT.
I THINK, I THINK I WOULD LIKE THE NEXT MEETING TO BE MORE OF A WORKSHOP STYLE MEETING FOR THE MEMBERS AND WE'LL KNOW WHAT, WHAT SUPPORT WE NEED FROM STAFF.
DO YOU WANT TWO SEPARATE ROOMS? I'M JUST LOOKING AT LOGISTICS RIGHT NOW.
IF THERE'S ANOTHER ROOM THAT WE COULD USE, I THINK THAT WOULD HELP JUST FROM THE CONVERSATION SIDE.
BUT WE'RE NOT SO BIG THAT WE COULDN'T BE THERE IN HERE, SO COULD WE NOT DO THE RIDE ALONG NEXT WEEK? AND THAT WAY WE JUST GET, SO PART OF, PART OF THE JAMES, SERGIO AND I'M, I THE RIDEALONGS WILL BE PART OF THIS, PART OF THE, PART OF THE WHOLE CONVERSATION WITH GILBERT'S, UH, THAT WE HAD WAS THAT THE CITY IN THE RECENT HISTORY OR IN IN RECENT HISTORY HAS NOT HAD SOMEBODY, UM, THAT WANTS TO CHAIR LIKE GILBERT WOULD LIKE TO CHAIR.
AND THAT IS A FANTASTIC THING.
THAT'S A, THAT'S A VERY POSITIVE COMMENT.
THAT AND UM, HAS A LOT OF KNOWLEDGE AND WANTS TO DIVE IN AND HE WANTS TO BE VERY ENGAGED WITH THIS ENTIRE COMMITTEE AND HE WANTS TO SLOW WALK THIS, THIS COMMITTEE THROUGH UNDERSTANDING EVERYTHING.
WE JUST HAVE NOT HAD THE RECENT HISTORY OF CITIZENS WANTING THAT LEVEL OF INVOLVEMENT, UH, THAT ARE TAKING ON THE CHAIR.
AND WE ARE HAPPY TO BE LIKE, HERE IS THE SUPPORT ELEMENTS SPECIFICALLY TO GILBERT AND THE COMMITTEE AND OFFER OUR RESOURCES TO HIM AND HANDING OFF THE REINS TO HIM SO THAT HE CAN RUN THIS COMMITTEE, HOW HE SEES A SUCCESSFUL WAY FORWARD AND NOT HAVE STAFF GET IN THE WAY OF THAT.
AND LET'S JUST BE HERE AS A SUPPORT ELEMENT.
UH, AND WE, WE'LL BE DOING SOME, SOME TOURS OF, OF STREETS AND BUILDINGS OR WHATEVER.
THAT WOULD BE PART OF WHAT WE SCHEDULE ONCE, ONCE WE GET TO UNDERSTAND WHAT, WHAT THOSE PROJECT NEEDS ARE IN MORE DETAIL.
BUT I THINK FOR THE NEXT MEETING, I'D LIKE TO FOCUS OUR TIME ON JUST GETTING IN THE DETAILS OF
[01:25:01]
SOME OF THE PROJECTS MORE THAN JUST THE ONE LITTLE PARAGRAPH DESCRIPTION THAT, THAT WE COULD, WE HAD AND WE'LL, WE'LL TALK ABOUT THAT.SO IT'S SAFE TO SAY THAT IT WOULD BE REALLY LIKELY AFTER THE BOARD MEETING.
IT WON'T BE NEXT MEETINGS, RIGHT? THAT'S WHAT I'M SAYING.
ANY OTHER QUESTIONS OR COMMENTS? I DON'T KNOW.
CAN, CAN I ADD IN ON A POSITIVE NOTE? SO THIS WEEKEND THERE WERE BOND ELECTIONS FOR MAY, THERE WERE 19 CITIES THAT WENT OUT FOR GENERAL BOND ELECTIONS.
NOW FOUR OF THE FIVE THAT FAILED WERE FOR SPECIFIC BUILDINGS.
SO ONLY ONE THAT HAS STREETS AND DRAINAGE FAILED THIS PAST DAY.
SO GENERALLY, LIKE JONATHAN SAID, IF YOU'RE TALKING ABOUT STREETS, DRAINAGE, MOBILITY, THE, THE GENERAL PUBLIC IS USUALLY VERY FAVORABLE OF THOSE ITEMS. UM, SO IT'S JUST, I WANTED TO GIVE THAT, AND YOU WE'RE, WE'RE IN THE MIDST OF PRE-TERM TOUGH, UH, ECONOMIC CLIMATE NOW.
SO JUST, JUST WANT TO END IT ON A POSITIVE NOTE.
UH, DID, DID WE TALK ABOUT THE LENGTH OF THESE MEETINGS? NO, NO ONE TALKED ABOUT HOW, 'CAUSE I THINK INITIALLY ON THE SCHEDULE THEY WERE LIKE PRETTY LONG, BUT THE FIRST ONE SAID, THE SECOND ONE IS, UH, IS AN HOUR AND A HALF TOO LONG, FOUR 30 TO SIX? OR WOULD YOU LIKE ONE HOUR? WHAT WOULD THE COMMITTEE LIKE 4 36 4 30 TO SIX.
THAT'S ABOUT AS LONG AS WE'VE TAKEN TODAY AND I THINK IT'LL BECOME MORE WORK SHOPPING, RIGHT? YEAH.
THE NEXT, IT'S BEEN JUST PRESENTATIONS BUT US, WE WE'RE GONNA BE DISCUSSING AND WE SHOULD GET A LOT DONE IN THE NEXT MEETING.
A LOT, LOT OF IN-DEPTH WORK THE NEXT MEETING.
OKAY, WELL, WE'LL TARGET FOUR 30 TO SIX, WHICH IS ABOUT WHERE WE'RE AT RIGHT NOW.
SO UNLESS ANYONE HAS ANY OTHER COMMENTS OR QUESTIONS, WE'LL WE'LL BE ADJOURNED.