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[ CITY OF BAYTOWN NOTICE OF MEETING BAYTOWN FINANCE COMMITTEE THURSDAY, JULY 24, 2025 4:00 P.M. BAYTOWN CONFERENCE ROOM, CITY HALL 2401 MARKET STREET, BAYTOWN, TEXAS 77520 AGENDA CALL TO ORDER AND ANNOUNCEMENT OF QUORUM ]
UH, I'LL CALL THE ORDER OF THIS MEETING, UH, THE BAY TIME FINANCE COMMITTEE.IT'S 4 0 4 BAY TIME CONFERENCE ROOM AT CITY HALL.
UH, FIRST ITEM ON THE AGENDA IS CITIZEN COMMENTS, BUT WE HAVE ON, OKAY, WE'VE GOT ITEM
[a. Consider the approval of minutes of the Baytown Finance Committee Meeting held June 12, 2025.]
TWO A CONSIDERED THE APPROVAL OF MINUTES OF THE BAYTOWN FINANCE COMMITTEE MEETING ON JUNE 12TH, 2025.SECOND, DID YOU HAVE A COMMENT? WELL, OKAY.
ALRIGHT, WILL WE HAVE A MOTION? A SECOND? ALL IN FAVOR, PLEASE SAY AYE.
OPPOSED? ALRIGHT, THE MOTION CARRIES.
[a. Discuss General Obligation Bonds.]
A DISCUSSIONS.WE'LL DISCUSS GENERAL OBLIGATION BONDS.
SO, UM, COMMITTEE MEMBERS, WHEN WE PUT THIS ON, WHEN WE SCHEDULED THIS MEETING, WHEN THE DRAFT PRESENTATION WAS AT 180 MILLION PLUS, AND Y'ALL HAD ASKED TO BRING THIS BACK, IF ANYTHING WAS OVER 150 MILLION, WELL, TECHNICALLY IT'S STILL OVER 150.
THE REC THE PROPOSED RECOMMENDATION IS OVER 150 MILLION AT 151 MILLION AND SOME CHANGE AT THIS POINT.
SO IT'S STILL TECHNICALLY IS OVER, AND THAT IS THE REASON TO BRING IT BACK.
'CAUSE THE COMMITTEE WANTED TO DECIDE IF Y'ALL WANTED TO EXCEED THAT THRESHOLD.
IN ADDITION TO THAT, UH, WE HAVE, UH, MEMBERS OF THE, UH, CITIZEN COMMITTEE THAT WOULD LIKE TO, UH, PROBABLY TALK TO Y'ALL A LITTLE BIT AND ALSO LOOK FOR, UH, EXPLANATIONS FROM OUR FINANCIAL ADVISOR AND LEGAL TEAM, UH, FOR SOME OF THE NUMBERS, BUT ALSO BE VERY HELPFUL, UH, FOR THE ENTIRE COMMITTEE, THE CITIZENS AND, AND EVERYBODY INVOLVED WITH THIS PROCESS AS WELL.
AND SO WE'RE TRYING TO USE, UH, TWO BIRDS ONE STONE RIGHT NOW TO ACTUALLY GO OVER QUITE A FEW THINGS.
AND WITH THAT, I WILL TURN IT OVER TO THERESA IF SHE HAS ANYTHING ELSE TO, NO, I THINK SHE HAS NOTHING ELSE, SIR.
UM, I CAN TELL YOU AND THE MEMBERS THAT ARE HERE, THAT WHEN WE STARTED THIS ENTIRE PROCESS, WE DIDN'T LIMIT OURSELVES TO ONE 50.
WE, WE, WE TOOK AN APPROACH TO LOOK AT ALL THE PROJECTS, UM, VALIDATE THEM BY UNDERSTANDING THE DETAILS.
AND WE TWEAKED SOME COSTS, WE TWEAKED SOME SCOPE ALONG THE WAY, YOU KNOW, THAT INSTEAD OF FOUR MEETINGS, WE TOOK 10.
AND SO WE TOOK A VERY THOROUGH LOOK AT ALL THE PROJECTS IN FAIRNESS TO EACH PROJECT INSTEAD OF TRYING TO, WELL, IF WE AGREE WITH THAT ONE, WE ONLY HAVE THIS MUCH LEFT AND WE DON'T HAVE THIS MUCH LEFT.
SO ONCE WE DID THAT, WE ENDED UP WITH, WITH A, UM, A LIST OF OVER $183,000 THAT THE COMMITTEE, 183 MILLION THAT THE COMMITTEE SAID, THESE ARE ALL WORTHWHILE PROJECTS TO LOOK AT.
UM, THE NEXT TIME WE MET, THAT NUMBER TWEAKED DOWN A LITTLE BIT BECAUSE, UH, THERE WAS SOME SCOPE CHANGES ON DEFI AND STERLING, AND THEN THE LANTERN PARK PROJECT CAME OUT BECAUSE OF OTHER FUNDING.
AND SO WE GOT DOWN TO ABOUT THE 1 73 MARK.
WHEN WE MET AT OUR LAST MEETING, UH, WE STILL HAD SOME QUESTIONS ABOUT A COUPLE OF PROJECTS.
UM, AND THE BIGGEST ONE WAS THE NATURE CENTER PROJECT AT 14 MILLION.
AND WE, WE VERY EASILY DECIDED THAT THAT ONE WAS STILL IN TOO MUCH FLUX.
THE, THE, THE FOLKS WEREN'T AGREEING, CONSULTANTS, PARKS FOLKS.
AND, AND WE, WE PULLED THAT ONE ASIDE AND THEN WE, WE TOOK OFF THE STERLING AND DFE PROJECTS AS WELL.
THEY WERE LOWER ON THE CITY'S PRIORITY, BUT BEING MAJOR EAST WEST THOROUGH AFFAIRS IN THAT PART OF TOWN, WE THOUGHT, WELL, LET'S GET A JUMP ON THOSE AND GET THOSE INCLUDED.
BUT PAVING CONDITION INDEX NUMBER SAID THEY STILL HAVE A LITTLE MORE LIFE IN 'EM, RIGHT? AND IF WE WERE TRYING TO GET TO THE ONE 50 TARGET, THEN THOSE THREE PROJECTS LET US GET THERE.
TECHNICALLY WE ARE OVER ONE 50 AND, AND SO IT, WE WOULD HAVE TO CUT SOME OTHER, YOU KNOW, SIGNIFICANT MILLIONS OF DOLLARS TO GET BELOW ONE 50.
AND, AND WE LEFT IT AT THE 1 51 MARK.
SO FOR ME, UH, FROM THE VERY BEGINNING, UM, THIRD MEETING WE HAD, THE PRESENTATION GAVE US A $150 MILLION, UH, AMOUNT THAT WOULD NOT TRIGGER A TAX RATE INCREASE.
WE'RE ALL CLEAR THAT IT'S STILL A TAX INCREASE.
UM, WE'RE AT THE 1 51, AND I'M NOT CONCERNED ABOUT THAT.
I'M JUST STILL WANTING TO GET THAT LAST CONFIRMATION THAT THE ONE 50 MILLION WAS A GOOD NUMBER BECAUSE THAT, THAT IS CONDITIONAL ON OUR RECOMMENDATION THAT WE'RE NOT TRIGGERING A, A TAX RATE INCREASE.
AND SO WE HAVEN'T HAD THE CONVERSATION IN DETAIL SINCE THE THIRD MEETING IN THIS WHOLE PROCESS.
AND, AND I KNOW THERE'S A LOT OF TIME HAS PASSED AND, AND MAYBE SOME NEW INFORMATION HAS BEEN LOOKED AT.
I KNOW THERE WERE QUESTIONS, MIKE CAN SPEAK TO THAT
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ON THE, THE, THE, UH, ANALYSIS ON ON, ON THE, ON THE GROWTH THAT WE WOULD SEE 9% VERSUS 6% AND ALL THAT.AND WE DID HAVE SOME PRELIMINARY CONVERSATION ON THOSE TWO NUMBERS.
SO ANYWAY, I'M JUST HERE TO JUST CONFIRM, UH, FROM THE CITIZEN'S STANDPOINT THAT THE, UH, THAT ONE 50 MILLION ISH NUMBER IS STILL, UH, UNDER THE, UH, TRIGGERING A TAX RATE.
SO, UM, WITH THAT, WE'LL GET TO THAT WITH, UM, OUR FINANCIAL ADVISOR AT SOME POINT.
BUT, UM, WITH RIGHT NOW, WE'RE GONNA LET, UM, OUR BOND COUNCIL SPEAK ABOUT THE PROPOSITION BECAUSE EVEN IF WE, UM, DO NOT, UH, INCREASE THE TAX RATE, HOW THE BOND PROPOSITION IS LISTED MAY IMPACT, UM, WELL, YOU JUST NEED TO BE AWARE OF WHAT YOU KNOW, WHAT IT WILL LOOK LIKE.
AND SO YOU CAN, UM, ELABORATE ON THAT.
JONATHAN FROZE WITH BRACEWELL.
WE SERVE AS Y'ALL'S, UH, BOND COUNCIL.
UH, WE TOOK A LOOK AT THE PRELIMINARY LIST OF PROJECTS THAT THE, UH, THAT THE BOND COMMITTEE SENT OVER AND, AND TALK THROUGH FROM A STATE LAW STANDPOINT HOW YOU MIGHT WANT TO, UM, ALLOCATE THOSE, UH, AMONG THE VARIOUS PROPOSITIONS.
AND JUST AS A REFRESHER FOR EVERYBODY, THE WAY THAT IT WORKS UNDER STATE LAW IS EACH PROPOSITION HAS TO RELATE TO A SINGLE SPECIFIC PURPOSE.
AND THAT SINGLE SPECIFIC PURPOSE CAN BE MULTIPLE PROJECTS, BUT FOR A SINGLE PURPOSE.
UH, SO AS WE GO THROUGH THIS, UNDERSTAND THAT THAT'S WHERE WE'RE COMING FROM AS WE LOOK AT THIS, ARE WHAT ARE LEGAL PURPOSES THAT WE'RE ALLOWED TO KIND OF BREAK INTO THE PROJECTS.
UM, THE, THE FIRST PROPOSITION, SO YOU, YOU HAD TWO SETS OF STREET PROJECTS LISTED IN THE RECOMMENDATION.
ONE WAS A MAJOR THOROUGHFARES APPROACH, AND THE OTHER WAS MORE OF A NEIGHBORHOOD STREETS APPROACH.
AND SO WHAT WE WERE RECOMMENDING IS LOOKING AT A PROPOSITION THAT WOULD BREAK IT INTO TWO SEPARATE PROPOSITIONS, KIND OF AS YOU HAD SUGGESTED.
ONE THAT WOULD BE ON THE MAJOR THOROUGHFARES, ONE THAT WOULD BE ON THE NEIGHBORHOOD STREETS.
AND THIS IS, THIS IS WHAT THE LANGUAGE WOULD LOOK LIKE AS OF RIGHT NOW.
AGAIN, WE CAN TWEAK IT A LITTLE BIT, BUT THIS IS GENERALLY, SO IT'S FOR THE PURPOSE OF PROVIDING FUNDS FOR THE DESIGN CONSTRUCTION ACQUISITION IMPROVEMENT AND EQUIPMENT OF MAJOR THOROUGHFARES, INCLUDING SIDEWALK STREET LIGHTING TRAFFIC SIGNALS AND RELATED STORM DRAINAGE IMPROVEMENTS, AND THE ACQUISITION OF EASEMENTS AND RIGHTS OF WAY IN CONNECTION THEREWITH.
SO THAT'S HOW THE MAJOR THOROUGHFARES PROPOSITION, UH, WOULD LOOK.
UH, WE WOULD OBVIOUSLY WANT TO LOOK AT IF THERE WERE OTHER, UH, UTILITIES IN ADDITION TO STORM DRAINAGE, WE COULD LOOK AT THAT AND WE COULD CHANGE THAT TO UTILITIES.
UM, SO, BUT THAT'S GENERALLY THE STRUCTURE THAT WE'D BE LOOKING AT, AT THE MAJOR THOROUGH AFFAIRS LANGUAGE.
THE, UM, NEIGHBORHOOD STREETS, AGAIN, VERY SIMILAR, UH, IN, IN ITS PRESENTATION.
IT WOULD JUST BE SET UP FOR NEIGHBORHOOD STREETS.
SO AS YOU'RE LOOKING AT THE INDIVIDUAL PROPOSITIONS, SO ARE THERE ANY QUESTIONS JUST KIND OF HOW WE WOULD PRESENT THE STREET PROPOSITIONS THAT'S INTENDED TO CAPTURE ALL OF THE TYPES OF PROJECTS THAT YOU GUYS HAD LISTED BY INCLUDING THE SIDEWALKS, UTILITIES, DIFFERENT THINGS ALONG THOSE LINES THAT WERE INCLUDED IN THEM? I HAVE A QUESTION ABOUT, UM, JUST HOW WE WORD THESE, RIGHT? BECAUSE IF IT WERE TO FAIL, WE CAN'T, UM, WE CAN'T USE COS TO FUND THESE PROJECTS FOR, I DUNNO IF IT'S THREE OR FIVE, IS THAT THREE YEARS RIGHT NOW? BUT THEY'RE BE CHANGED RIGHT NOW, BUT THERE'S, THERE COULD BE CHANGED TO IT'S, SO BECAUSE WE DON'T LIST SPECIFIC PROJECTS IN THE PROPOSITION, UM, IF IT WERE TO FAIL, CAN WE NOT USE COS FOR ANY NEIGHBORHOOD STREETS OR FOR
SO IF PROPOSITION A WERE TO FAIL, IT'S SET UP FOR MAJOR THOROUGH AFFAIRS.
UH, AND IT'S ALL MAJOR THOROUGH FAIRS THE WAY THAT IT'S CURRENTLY SET UP.
SO IF IT FAILED ON YOUR MAJOR THOROUGH AFFAIRS, YOU WOULD BE FROZEN OUT FOR FIVE YEAR, THREE YEARS.
NEW LAW PASSES FIVE YEARS, AND ON THE NEIGHBORHOOD STREET ONE SEPARATELY, IF THAT WERE TO FAIL, THEN YOU WOULD BE FROZEN OUT FOR THE WHATEVER THE FREEZE PERIOD IS UNDER CURRENT LAW, UH, AS IT RELATES TO THAT.
SO ANOTHER APPROACH THAT WE COULD DO, I MEAN THIS IS A, THIS IS KIND OF UP TO YOU GUYS IF THAT'S WHAT YOU WANNA DO, IS THAT WE CAN ADD, WE CAN SAY TO WIT OR SPECIFICALLY THE FOLLOWING PROJECTS AND WE CAN LAY OUT THOSE PROJECTS AND THEN YOU WOULD BE JUST PROHIBITED FROM USING COS IN THE FUTURE IF YOU HAD A FAILED ELECTION FOR THOSE PROJECTS FOR THROAT.
NOW THE, THIS IS WHAT YOU HAVE TO WEIGH WHEN YOU'RE LOOKING AT THAT, IT ALSO REDUCES YOUR FLEXIBILITY BECAUSE THEN YOU'VE LIMITED YOURSELF TO USING THE PROCEEDS FOR THOSE PARTICULAR PROJECTS THAT ARE LISTED.
AND IF YOU HAVE ANY LEFTOVER PROCEEDS OR SOMETHING HAPPENS AND YOU NEED TO MAKE AN ADJUSTMENT, UH, IN THE PROJECTS BECAUSE OF COST OVERRUNS OR SOMETHING ALONG THOSE LINES, THEN YOU'VE CREATED A LITTLE BIT OF INFLEXIBILITY IN WHAT YOU CAN DO.
AGAIN, THAT'S JUST, THAT'S FOR Y'ALL TO WEIGH AS A POLICY DECISION ON IF IT'S MORE IMPORTANT.
I MEAN, IF YOU'RE PRETTY CONFIDENT THAT YOU'RE GONNA BE ABLE TO GET THESE, THESE PROPOSITIONS PASSED, THEN MAYBE YOU TAKE A MORE, UH, A MORE AGGRESSIVE, BROADER APPROACH TO IT.
UM, AND IF YOU, IF YOU HAVE CONCERNS ABOUT IT, THEN MAYBE YOU TAKE A, A MORE NARROW APPROACH.
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I'M SORRY.SO I KNOW YOU CAN'T, UH, GO FIND OTHER FUNDING, BUT YOU CAN COME BACK AND MODIFY THIS AND GO BACK FOR A GEO BOND ELECTION.
YOU COULD GO BACK OUT FOR ANOTHER BOND ELECTION.
SO YOU, YOU, YOU MAY, IT MAY, SOMETHING MAY FAIL, YOU CAN GO FIGURE OUT WHAT THE PROBLEM WAS, TWEAK THAT AND GO OUT FOR ANOTHER GEO BOND ELECTION.
TO GET THE WORD DONE RIGHT? YES, SIR.
SO YOU'RE NOT LIMITED ON THREE TO FIVE YEARS ON THAT PART.
NOW I WILL SAY THERE ARE TWO BILLS THAT HAVE BEEN, WELL, LIKE FIVE BILLS ACTUALLY THAT HAVE BEEN PROPOSED TO KEEP YOU FROM HAVING A NEW ELECTION AFTER YOU'VE HAD A FAILED ELECTION FOR FIVE YEARS.
SO CURRENTLY THERE ARE TWO BILLS THAT ARE IN THE LEGISLATURE.
NOW, WHETHER THOSE BILLS MOVE, LIKE THAT'S HORRIBLE PUBLIC POLICY.
ONE OF THE, ONE OF THE THINGS THAT I THINK FOR CONSIDERATION ON LANGUAGE IS, YOU KNOW, MAKING IT, MAKING IT GENERAL AND VAGUE IS GOOD FOR FLEXIBILITY, BUT IT'S BAD FOR ESTABLISHING CONFIDENCE THAT YOU'RE GONNA DO WHAT YOU'RE GONNA DO.
THAT WAS GONNA, I WAS GONNA ASK Y'ALL THE CITIZENS, I THINK FOR THE CITIZENS, IF WE SAY, IF WE KEEP IT VAGUE AND SAY MAJOR THOROUGH AFFAIRS AND HALFWAY THROUGH THIS WE PIVOT TO ANOTHER THOROUGHFARE THAT Y'ALL DIDN'T DISCUSS, I DON'T THINK THE PIVOT SHOULD, SHOULD EVEN BE CONSIDERED, RIGHT? I THINK THERE NEEDS TO BE SOME LANGUAGE TO ALLOW FOR THE FACT, LET'S SAY THERE'S A, A PROJECT THAT'S DEPENDENT ON GRANT FUNDS AND THE GRANT FUNDS DON'T MATERIALIZE AND YOU CAN'T USE THE BOND MONEY FOR THAT PROJECT.
YOU CAN DO IT ON ANOTHER LIKE PROJECT, RIGHT? HOW DO YOU PROVIDE THAT FLEXIBILITY? BECAUSE I KNOW IN PREVIOUS BONDS, SCHOOL DISTRICTS, FOR INSTANCE, AND EVEN EVEN THE CITY BOND IN OH SEVEN, YOU KNOW, IT, IT'S NOT TO, IT'S NOT TO THE DOLLAR, RIGHT? YOU'RE, YOU'RE GONNA HAVE MONEY AND YOU'RE GONNA HAVE OTHER, OTHER NEEDS AND YOU CAN USE 'EM FOR LIKE PROJECTS.
SO, SO ONE THING I WOULD SAY IS, UH, A WAY A LOT OF PEOPLE DEAL WITH THAT ISSUE IS NOT IN THE PROPOSITION LANGUAGE ITSELF.
THEY DEAL WITH IT IN THE MATERIALS THAT THEY PUT OUT ON THE ELECTION.
SO WE SAY THE MATERIALS WILL BE VERY SPECIFIC THAT, THAT WE KNOW.
IT'S, IT'S WHEN PEOPLE ARE VOTING, YOU KNOW, IS KNOWING THEY'RE GONNA GET WHAT THEY'RE VOTING FOR, RIGHT? THAT'S WHERE THE LANGUAGE IS VAGUE.
THERE'S A LITTLE DOUBT, BUT, BUT I, BUT I WOULD SAY YOUR, YOUR PROPOSITION, RIGHT? SO THE PROPOSITION LAYS OUT THE GENERAL FRAMEWORK, BUT YOUR MATERIALS THAT YOU'RE PUTTING OUT IS KIND OF THE CITY SAYING THIS IS WHAT WE INTEND TO DO, RIGHT? AND, AND YOU, YOU HAVE TO THINK VERY CAREFULLY IF YOU'RE EVER GOING TO REALLY DEVIATE MUCH FROM WHAT YOU'VE TOLD THE CITIZENS THAT YOU'RE GONNA DO INSIDE OF THOSE MATERIALS.
SO PART OF GILBERT, PART OF THAT THAT Y'ALL TALKED ABOUT, Y'ALL WERE THE BOND COMMITTEE WAS VERY SPECIFIC ON MAKING SURE THAT THE MONEY WAS SPENT ONLY ON THE PROJECTS DISCUSSED.
AND THAT HAS BEEN CLEAR FROM THE WHOLE CONVERSATION, RIGHT? I AGREE WITH Y'ALL.
ONE LITTLE CLARIFICATION NOT ONLY ON THAT, BUT FOR THAT, FOR THAT, YES.
SO YOU CAN USE IT FOR OTHER THINGS AS LONG AS WHAT WE SAID IS GONNA GET DONE IS GONNA GET DONE FIRST, RIGHT? BUT THE, THE, THE, I'M GONNA USE THE WORD CATCHALL FOR THE COMMITTEE WAS THAT THERE WAS A COMMITTEE THAT OVERSAW THE ISSUANCES TO ENSURE THAT WAY.
IF IT WAS KEPT GENERAL LIKE THIS, THE COMMITTEE MADE THE RECOMMENDATION TO THE FINANCE COMMITTEE THAT WE ARE GONNA, SO LIKE, I'M JUST GONNA USE PROPOSITION A RIGHT NOW ONLY, AND IT'S $86 MILLION.
YOU WOULDN'T ISSUE ALL $86 MILLION RIGHT THERE THAT FIRST YEAR.
YOU MAY DO 86 MILLION OVER FIVE YEARS.
YOU ONLY ISSUE 20 MILLION THE FIRST YEAR.
AND THE BOND COMMITTEE MADE A RECOMMENDATION, HEY, YES, WE, WE WANT TO ISSUE THIS 20 MILLION.
YOU MAKE THAT RECOMMENDATION TO THE FINANCE COMMITTEE.
THE FINANCE COMMITTEE MAKES THAT RECOMMENDATION TO THE CITY COUNCIL.
THAT WAY THERE'S THREE DIFFERENT BODIES HAVE ASSURED THAT THAT MONEY'S ONLY BEING USED FOR THOSE PROJECTS.
AND IF YOU KEEP IT GENERAL IN NATURE, IT GIVES YOU THAT FLEXIBILITY SHOULD THAT THAT BOND OR THAT GRANT NOT COME IN.
UM, AND THAT WAY EVERYBODY'S STILL BEING HELD ACCOUNTABLE.
BUT I FULLY UNDERSTAND THE SIDE OF BEING STRICT AND NARROW OF FOCUS FOR THE DEBT.
IT'S JUST WHAT HAPPENS IF THE GRANT DOESN'T COME? WELL, IF THE GRANT DOESN'T COME, YOU JUST DON'T ISSUE THAT DEBT FORWARD IF YOU'RE, IF YOU'RE NARROW, YOU JUST DON'T ISSUE THE DEBT UNTIL YOU GET THE GRANT.
REALLY, REALLY THE ISSUE YOU LOOK AT IS, IS REMAINING FUNDS, RIGHT? 'CAUSE WE, WE WOULD EXPECT THAT, UH, WE WOULD HAVE SOME, SOME REMAINING FUNDS AND, AND CAN YOU USE THOSE FUNDS FOR SIMILAR PRO? IF IF YOU'RE DOING, UH, 2.5 MILLION OF SIDEWALK WORK AND YOU'RE, AND YOU GET IT DONE AT 2.2, WE SHOULD BE ABLE TO DO MORE SIDEWALK WORK, RIGHT? IT, IT'S JUST MORE SIDEWALK WORK, RIGHT? AND WE DIDN'T SPECIFY WHAT SIDEWALKS WE'RE DOING, WE'RE JUST DOING SIDEWALKS.
SO THAT WAS PRETTY, PRETTY, UH, GENERIC.
WHEN YOU CALL OUT A STREET LIKE LOBIT AND IT'S FROM A TO B AND YOU COMPLETE THAT STREET AND YOU HAVE HALF A MILLION DOLLARS LEFT OVER, CAN YOU DO ANOTHER STREET REPAIR PROJECT? MAYBE THAT WAS ON THE LIST THAT, THAT GOT PULLED OFF BECAUSE OF FUNDING.
IF YOU'VE LISTED SPECIFIC PROJECTS YOU WERE GOING AND WITH THE INTENT TO KIND OF LIMIT
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THE PROJECTS SO THAT YOU COULD ISSUE COS FOR OTHER PURPOSES IF IT FAILED, THAT KIND OF STUFF, YOU WERE LIMITED TO THOSE PROJECTS.SO WHAT, WHAT DID YOU DO WITH THAT EXTRA FUNDS? WELL, YOU, I MEAN, YOU DON'T, YOU DON'T ISSUE IT, RIGHT? SO YOU DON'T IT NO, IT'S BEEN ISSUED.
SO YOU USE IT ON ISSUE, THE PROJECTS DONE, YOU USE IT ON PROJECTS THAT CAN BE USED FOR.
AND IF YOU HAVE FUNDS THAT ARE REMAINING AFTER THAT, THAT YOU ARE PROHIBITED FROM USING, THEN YOU USE IT TO DEFEASE THE DEBT OR PAY DEBT ER TO PAY DEBT SERVICE OR DE FEES THE DEBT.
I MEAN, IF YOU'VE LIMITED YOURSELF MOST OF THESE, AND THE LIMITING WOULD BE BECAUSE OF THIS LANGUAGE.
BECAUSE OF THE LANGUAGE AND THE PROPOSITION.
SO THE LANGUAGE AND THE PRO PROPOSITION, I THINK WE'D WANNA DO THAT LIMITING LANGUAGE.
I MEAN, I, I THINK WE WANT TO BE CLEAR ENOUGH FOR VOTERS TO UNDERSTAND WHAT THEY'RE VOTING FOR, BUT NOT SO LIMITING THAT YOU HAVE A HALF A MILLION LEFT OVER AND ALL YOU CAN DO IS PAY DOWN THE DEBT.
SO THOSE ARE, THOSE ARE THE STREETS.
THAT'S, THAT'S THE GENERAL, AND, AND AGAIN, WE, WE WILL LET YOU GUYS TALK MORE ABOUT IT, BUT THAT'S, THAT, THAT'S THE GENERAL VIEW ON THE STREETS.
THE, THE NEXT CATEGORY THAT Y'ALL TALKED ABOUT, UM, WERE DRAINAGE IMPROVEMENTS.
SO THIS IS A GENERAL DRAINAGE IMPROVEMENT PROPOSITION.
VERY GENERAL, IT WOULD ALLOW YOU TO DO ANY TYPE OF DRAINAGE, UM, IMPROVEMENTS.
AGAIN, DRAINAGE GENERALLY NOT THAT CONTROVERSIAL MOST OF THE TIME.
SO THAT'S WHY WE KIND OF DRAFTED THIS AS A, AS A MORE GENERAL DRAINAGE PROPOSITION.
BUT THAT'S, THAT'S WHAT THE LANGUAGE WOULD LOOK LIKE.
UM, THE ONE AFTER THAT, OKAY, SO THIS WAS SOMETHING IN THE RECOMMENDATIONS THAT CAME.
WE CAN'T DO A GENERAL FACILITIES PROPOSITION.
SO THE AG WON'T ALLOW US TO DO THAT.
WE HAVE TO BREAK OUT THE FACILITIES BY WHAT THEIR UNDERLYING PURPOSE IS.
SO IN THIS CASE, AND THIS WAS BEFORE, I THINK Y'ALL MAY HAVE HAD SOME MORE DISCUSSION ABOUT, ABOUT THIS, UM, WE BROKE OUT THE FIRE FACILITIES AND THEN WE BROKE OUT THE, UM, THE, THE NATURE CENTER AND ARBORETUM GARDENS FACILITIES.
SO THE FIRE FACILITIES, LET'S TALK ABOUT THAT FIRST, RIGHT? SO THIS IS FOR PROPERTY ACQUISITION DESIGN.
SO IN ORDER TO DO THAT, WE HAVE TO HAVE A PROPOSITION THAT ACTUALLY TAKES INTO ACCOUNT CONSTRUCTION.
'CAUSE YOUR AUTHORITY TO ISSUE DEBT IS CONSTRUCTION AND THE DESIGN AND PROPERTY ACQUISITION AS PART OF THAT.
SO THAT'S WHY IT WILL SAY CONSTRUCTION AS PART OF THE PROPOSITION.
UM, WE'VE AGAIN WRITTEN THIS BROADLY FOR FIRE DEPARTMENT FACILITIES.
IF IT IS TRULY ONLY FOR A SINGLE FIRE DEPARTMENT FACILITY, UH, WE MIGHT RECOMMEND NARROWING THAT PROPOSITION TO GIVE YOU SOME ADDITIONAL FLEXIBILITY AS IT RELATES.
UH, I MEAN TO, FOR, FOR NON VOTED DEBT IF IT WERE TO FAIL.
UM, BUT THAT'S, THAT'S BEEN STRUCTURED AS A GENERAL FIRE DEPARTMENT PROPOSITION, UH, AS IT'S CURRENTLY WRITTEN AND IT'S BROKEN OUT SEPARATELY BECAUSE IT HAS TO BE, BE BROKEN OUT SEPARATELY 'CAUSE IT'S A SEPARATE PURPOSE FOR STATE LAW PURPOSES.
THEN ON THE NATURE CENTER AND ARBORETUM, UM, SO THERE WERE TWO PIECES TO THE NATURE CENTER AND ARBORETUM IN WHAT YOU GUYS HAD PROPOSED.
THERE WAS THE ACTUAL FACILITIES PIECE, WHICH I THINK WAS 14 MILLION.
AND THEN THERE WAS ANOTHER PIECE THAT WERE THE SURROUNDING PARTS TO IT.
SO, OR COULD HAVE BEEN VICE VERSA, UH, BUT IT WAS $27 MILLION TOTAL.
SO WHAT WE DID IS WE COULD HAVE PUT ALL OF THAT IN THE PARKS PROPOSITION.
SO THAT'S ONE PLACE WHERE YOU COULD HAVE PUT IT ALL, OR WE COULD DO IT AS A SEPARATE FACILITY, JUST KIND OF THE, ALL OF THE MATERIALS AS IT RELATES TO THE ARBORETUM AND GARDENS.
AND SO THAT'S THE APPROACH THAT WE KIND OF TOOK IN THE INITIAL DRAFT OF THESE PROPOSITIONS WAS TAKING THAT PROJECT, BOTH THE FACILITIES AND THE GARDENS PIECES, UM, AND, AND, AND SURROUNDING PIECES AND PUTTING IT IN A SINGLE PROPOSITION AS A SINGLE FACILITY.
FULL CLARIFICATION, FROM WHEN YOU'VE GOT THAT INFORMATION, THERE'S ONLY ONE PROJECT AND IT'S THE WETLAND CENTER EDUCATION FACILITY.
AND SO THAT IS A BUILDING PROJECT.
THERE ARE NO OTHER PERIPHERAL BAYTOWN NATURE CENTER COMPONENTS TO THAT.
UM, AND THERE ARE ONLY ARBORETUM COMPONENT ARE ARRE ARE GARDENS? NO, NO FACILITIES.
AND PROGRAMS. SO IT, IT'S THE SAME ULTIMATE, SAME THING.
SAME ULTIMATE QUESTION THOUGH FOR, FOR THE CITY IS WOULD YOU PREFER TO HAVE THAT AS PART OF A PARK PROPOSITION OR DO YOU WANT TO HAVE THAT AS A SEPARATE, SEPARATE PROPOSITION? UM, AND SO THAT'S WHAT WAY WE'VE STRUCTURED IT HERE IS AS A SEPARATE, SEPARATE PROPOSITION.
UM, YOU WANNA SCROLL DOWN A LITTLE BIT MORE? WE'LL LOOK AT THE, ALRIGHT, SO THIS IS THE PARKS AND RECREATIONAL FACILITIES.
SO THIS IS THE PARKS PROPOSITION.
WE COULD DO SOMETHING BROAD THAT'S ALL PARKS AND RECREATIONAL FACILITIES.
UM, SO THIS IS CONSIDERED A BROAD PARKS AND RECS PROPOSITION, ALTHOUGH IT NAMES SPECIFIC PARKS THAT ARE THERE.
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INCLUDING THE FOLLOWING PARKS.AND I THOUGHT BECAUSE OF THE WAY, AND THIS IS, I MEAN FEEDBACK ON THIS, I THOUGHT BECAUSE OF THE WAY THAT THE RECOMMENDATION, RECOMMENDATION WAS STATED, THAT THE NAMES OF THE INDIVIDUAL PARKS WAS PROBABLY IMPORTANT TO THE COMMITTEE MEMBERS WHO WERE MAKING THAT RECOMMENDATION.
SO THAT'S WHY IT'S GOT THE INCLUDING LANGUAGE WITH THOSE PARKS RECOMMENDED.
NOW, ONCE YOU FINISH THOSE PARKS PROJECTS, ANYTIME WE USE INCLUDING COMMA INPUT OR COMMA INCLUDING AND PUT EVERYTHING IN THERE, YOU HAVE TO SPEND FUNDS ON ALL OF THOSE PROJECTS, RIGHT? THE, THE CITY WOULD BE OBLIGATED AT THAT POINT.
IF THERE'S MONEY LEFT OVER, YOU'RE ALLOWED TO DO OTHER THINGS.
IF YOU'VE SPENT MONEY ON THOSE PROJECTS, YOU'RE ALLOWED TO DO OTHER THINGS.
BUT AS SOON AS WE PUT IT IN THE PROPOSITION, YOU HAVE TO SPEND MONEY ON THOSE PROJECTS.
SO, UM, LET'S SAY ONE OF THE PROJECTS NEEDS MORE MONEY AND YOU CAN'T GET TO ONE OF THEM BECAUSE YOU SPENT THOSE FUNDS ON ANOTHER ONE.
SO SOMETHING HAPPENS, THERE'S BIG CHANGE ORDER IN, UM, THINK, AND LORETTA USES UP MONEY THAT WAS MEANT FOR UNI THAT OR, UM, THE WAYNE SPORTS GRAY CENTER.
SO IT DOESN'T MEAN YOU, IT DOESN'T MEAN YOU HAVE TO FINISH THE PROJECTS.
IT MEANS YOU HAVE TO SPEND SOME FUNDS ON EACH OF THE PROJECTS FROM A LEGAL STANDPOINT.
UM, IT'S, IT'S SPENDING SOME FUNDS ON IT.
SO MAYBE YOU DID CONSTRUCTION, MAYBE YOU DID DESIGN AND ACT PROPERTY ACQUISITION ASSOCIATED WITH AN EXPANSION OF ONE OF THE FACILITIES.
THEN YOU WOULD'VE SPENT MONEY ON THAT PROJECT AND YOU COULD, YOU COULD MAKE REALLOCATION AS YOU NEEDED TO AMONG THE, AMONG THE PROJECTS.
UM, SO AGAIN, I MAY BE OVERREADING THE RECOMMENDATIONS, BUT I SAW THAT OTHER FACILITY BROKEN OUT, UM, FOR THE WETLANDS.
AND SO THAT'S WHY I PUT IT IN A DIFFERENT PROPOSITION.
I THOUGHT MAYBE THERE MAY HAVE BEEN MORE CONTROVERSY ABOUT THAT THAN OVER SOME OTHERS.
I DON'T KNOW ONE WAY OR THE OTHER IF IT IS OR NOT.
THE REASON FOR BREAKING IT OUT WAS IF THAT WAS SOMETHING THAT MIGHT GET GARNER NO VOTES, THEN YOU'VE GOT IT IN A SEPARATE PROPOSITION AND YOU, YOU'RE NOT PUTTING A GENERAL PARKS PROPOSITION AT RISK.
AGAIN, WE CAN ALWAYS, WE CAN ALWAYS MAKE THESE TIGHTER TO AVOID THE MORE GENERAL NATURE OF THEM, BUT YOU LOSE YOUR FLEXIBILITY.
SO THAT, THAT'S, THAT'S ALWAYS THE BALANCE THAT YOU'RE WORKING ON IS, IS TRYING TO DETERMINE THAT.
THE, THE OTHER THING I DID WANNA BRING UP IS THERE WAS A BILL THAT WAS PASSED DURING THIS LAST LEGISLATIVE SESSION, SB 10 25, UM, SB 10 25 MODIFIED A PROVISION OF THE ELECTION CODE THAT DEALS WITH, UH, PROPOSITIONS FOR MEASURES.
OUR BELIEF IS THAT THAT PROP, THAT BILL DID NOT MODIFY BOND PROPOSITION LANGUAGE.
WE HAVE SUBMITTED A BRIEF TO THE AGS OFFICE EXPLAINING OUR REASONING AND WHY WE BELIEVE IT DOES NOT MODIFY BOND PROPOSITION LANGUAGE.
AND WE FEEL VERY STRONGLY THAT OUR POSITION IS CORRECT.
HOWEVER, BECAUSE THE AG HAS NEVER APPLIED THIS PARTICULAR PROVISION TO BOND ELECTIONS.
HOWEVER, THEY SAID THEY'RE RECONSIDERING THEIR POSITION, WHICH IS WHY WE SUBMITTED THE BRIEFING ON IT.
SO IF THE AG WERE TO RECONSIDER, AND THEY'RE SUPPOSED TO GET BACK TO US BY AUGUST 1ST, UM, ON ON THEIR, THEIR REASONING ON THAT, IF, IF THEY REJECT THE APPROACH THAT WE'VE SUGGESTED AND THAT THEY HAVE HISTORICALLY TAKEN, UM, THEN WE WOULD HAVE SOME LANGUAGE THAT WE WOULD HAVE TO ADD TO THIS PROPOSITION.
SO AT THE TOP OF THE PROPOSITION BEFORE WE GET TO THE ISSUANCE, THERE WOULD BE LANGUAGE ADDED THAT IN ALL CAPS THAT SAYS THIS IS A TAX INCREASE.
SO THAT WOULD BE AT THE VERY, VERY TOP RIGHT UNDER CITY OF BAYTOWN PROPOSITION F IT WOULD SAY THIS IS A TAX INCREASE AS A SEPARATE LINE.
AND THEN YOU WOULD GO INTO THE PRO PROPOSITION.
THE PROPOSITION WOULD NO LONGER BE IN ALL CAPS.
IT WOULD HAVE TO BE IN MIXED CASE THAT THIS IS A TAX INCREASE WOULD BE IN ALL CAPS.
THE REST OF IT WOULD BE IN MIXED CASE.
AND THEN WE'D HAVE TO ADD LANGUAGE THAT WOULD SAY SOMETHING ALONG THE LINES OF LEVYING OF ATTACKS AT A RATE NOT TO EXCEED THE MAXIMUM AMOUNT ALLOWED BY LAW.
SO RIGHT HERE WHERE IT SAYS LEVYING OF ATTACKS SUFFICIENT TO PAY THE PRINCIPAL OF AN INTEREST ON THE BONDS, WHICH IS THE LANGUAGE THAT'S IN STATUTE RIGHT NOW, WOULD BE THE LEVY OF ATTACKS AT A RATE NOT TO EXCEED THE MAXIMUM TAX RATE ALLOWED BY LAW SUFFICIENT TO PAY.
SO THOSE WOULD BE MODIFICATIONS THAT WE WOULD PROBABLY COME BACK TO YOU IF, IF THE AG TAKES THAT POSITION.
AGAIN, WE STRONGLY BELIEVE THAT, UM, NOTWITHSTANDING WHAT THE LEGISLATURE THOUGHT IT DID, IT MODIFIED THE WRONG SECTION OF THE CODE.
AND THAT'S FOR ALL PROPOSITIONS.
THAT WOULD BE ALL PROPOSITIONS.
BUT I WANTED TO GIVE Y'ALL THAT HEADS UP BECAUSE THAT COULD BE A, A LAST MINUTE CHANGE THAT WE HAVE TO MAKE.
MOST LIKELY TO BE A LAST MINUTE CHANGE.
SO DIRECTION FROM Y'ALL IS, DO Y'ALL WANT TO BE SPECIFIC, GENERAL, IT DOES TAKE TIME FOR THEM TO LIKE PUT IT TOGETHER.
IF, IF I COULD JUST ADD, I BELIEVE THAT, THAT THE
[00:25:01]
COMMITTEE THAT GOES OUT AND AND TALKS FOR THE NEXT FEW MONTHS WITH THE PUBLIC CAN CLEARLY COMMUNICATE THE SCOPE OF EACH ONE OF THESE PROJECTS.AND ONCE THAT'S DONE, THAT'S WHAT EVERYONE IS EXPECTING THEIR VOTING FOR.
AND IF THEY VOTE FOR IT AND IT'S SUCCESSFUL, THEN THE, THE WAY THAT'LL BE SUCCESSFUL IS IF WE DO EVERYTHING WE SAY WE WERE GONNA DO.
AND ONCE THAT HAPPENS, THEN WE'RE NOT CONCERNED ABOUT LANGUAGE IN THE FUTURE BECAUSE THERE'S, THERE'S A RECORD, THERE'S A TRACK RECORD.
UH, I WOULD HAVE TO GO BACK AND LOOK AT THE 2007 BOND PROPOSITION LANGUAGE.
I, I BELIEVE THERE WERE SOME SPECIFICS WHEN PIRATES BAY WAS GONNA BE BUILT.
IT WAS PIRATES BAY BEING AN AQUATICS FACILITY.
IT WASN'T LIKE IT'S GONNA BE SOME WATER PARK.
TWO FIRE STATIONS WERE BEING CONSTRUCTED.
UM, AND WE DID THE SAME THING.
WE COMMUNICATED TO THE CITIZENS, THIS IS EXACTLY WHAT YOU'RE VOTING FOR.
UM, THE ONE THING WE HAVE A LITTLE BIT DIFFERENT IN THIS CASE, FRANK, IS, IS ARE THE STREETS AND THE $20 MILLION, YOU KNOW, TO GET RECONSTRUCTED.
LAST TIME IT WAS JUST THE WORST STREETS IN TOWN UP TO $30 MILLION AND THEY WERE WHAT THEY WERE, RIGHT? YEAH.
SO, UM, I FEEL AS A CITIZEN, I'LL LET THE OTHER FOLKS, OTHER FOLKS WEIGH IN THAT, UH, I BELIEVE WE CAN COMMUNICATE, EDUCATE, UH, THE, THE CITIZENS ON WHAT THEY WOULD BE VOTING FOR.
AND WITH THE FOLLOW UP CONSTRUCTION CITIZENS BOND ADVISORY COMMITTEE DOING EXACTLY WHAT JASON JUST SAID, IF A PROJECT RUNS INTO TROUBLE, THERE ARE NO, THERE'S NO MORE BOND MONEY.
YOU CAN'T GO GET MORE BOND MONEY.
YOU JUST, YOU HAVE WHAT YOU HAVE, WHICH IS WHY SOME OF THESE ESTIMATES ARE, ARE, ARE, HAVE A LOT OF CONTINGENCY ON 'EM BECAUSE YOU CAN'T GO BACK AND, AND I THINK THE CITIZENS GROUP WOULD BE ABLE TO SIT DOWN AND, AND DISCUSS WHAT HAPPENED.
WHY, UH, AND IF IT'S A REASONABLE THING OR, OR A HURRICANE HITS AND THERE'S NO COMPETITION FOR CONSTRUCTION PROJECTS, WHICH HAS HAPPENED IN THE PAST, UH, YOU MAY HAVE TO MOVE FORWARD WITH A PROJECT OVER ITS, UH, ITS STATED BUDGET KNOWING THAT YOU CAN MAKE IT UP SOMEWHERE ELSE.
SO, YOU KNOW, I I I THINK THE MAIN THING HERE IS HOW YOU FEEL ABOUT PUTTING THIS FORWARD TO THE PUBLIC SPECIFIC ENOUGH TO, TO, TO, TO SAY THIS IS WHAT WE'RE GONNA DO, BUT GENERAL ENOUGH TO ALLOW YOU SOME I I DON'T KNOW MUCH ABOUT, I MEAN EVERY BOND PROGRAM I'VE BEEN INVOLVED WITH, THERE'S ALWAYS BEEN MONEY LEFT OVER BECAUSE INTEREST EARNED ON THE MONEY THAT YOU BROUGHT IN.
RIGHT? AND SO YOU WOULD EXPECT YOU'RE GONNA HAVE EXTRA MONEY MORE THAN JUST WHAT YOU, WHAT YOU WENT OUT, YOU KNOW, 150 MILLION.
UM, SO THERE NEEDS TO BE, IN MY OPINION, SOME LANGUAGE THAT'S GENERAL ENOUGH TO ALLOW YOU TO DO WHAT YOU SAID YOU WERE GONNA DO AND CONTINUE DOING WHAT, WHAT YOU WERE DOING FOR THE BENEFIT OF THAT MONEY.
NOW COUNSEL, UH, CAN, CAN DECIDE THAT WHATEVER DOLLAR'S LEFT OVER JUST TO PAY DOWN THE DEBT, THAT'S NOT BAD EITHER.
I WOULD RATHER JUST PAY DOWN THE DEBT AND, AND, AND I CAN TELL YOU THAT THAT TYPICALLY, THAT THAT DOESN'T REALLY AFFECT A WHOLE LOT FROM A TAX RATE STANDPOINT OR ANYTHING.
'CAUSE IT'S, IT'S A LITTLE BIT OF MONEY ON MILLIONS AND MILLIONS AND MILLIONS OF DOLLARS, RIGHT? RIGHT.
SO YOU GET MORE BANG FOR THE BUCK IF YOU CAN TAKE THAT MILLION OR $2 AND GO DO MORE WORK THAN, THAN TO PAY DOWN A MILLION DOLLARS ON A HUNDRED, YOU KNOW, MILLION DOLLAR DEBT.
SO THAT, THAT'S THE OTHER THING.
YOU, YOU'VE BEEN, YOU'VE BEEN AUTHORIZED TO USE IT.
YOU JUST HAVE TO HAVE ENOUGH FLEXIBILITY TO USE IT FOR WHAT YOU SAID YOU WERE GONNA DO.
AND THOSE, THOSE ARE THE THINGS THAT'S WHAT'S DIFFICULT ABOUT THIS PART HERE.
AND I, I'LL, YOU KNOW, BE HONEST WITH YOU, I'VE SAID THIS BEFORE, BUT IF THIS WAS LIKE WE JUST DID THIS SIX YEARS AGO, WE'RE DOING IT AGAIN.
WE WOULDN'T HAVE A LOT OF CONSIDERATION ABOUT THE LANGUAGE, WOULD WE? YEAH.
YOU KNOW, RIGHT NOW WE JUST GOTTA MAKE SURE WE CAN GET THIS PASSED AND, AND WHAT'S GONNA HELP DO THAT.
I I WOULD FOCUS MORE ON GETTING IT PASSED THAN THE FLEXIBILITY OF WHATEVER THE CONCERNS ARE.
CAN I ADD TO GILBERT ON THAT? SO LET ME MAKE A GENERAL COMMENT.
DON'T ANYBODY IN THIS ROOM TAKE THIS WRONG.
EXCEPT, EXCEPT FOR THE CONSULTANTS.
THERE'S NOT A SINGLE ONE OF YOU IN THIS ROOM THAT HAS EVER DONE A A, A BOND.
NOT A SINGLE ONE OF YOU HAVE GONE THROUGH A BOND.
GILBERT HAVE DONE SEVEN IN EVERY ONE OF THOSE PAST BECAUSE OF THE DEATH PATHOLOGY THAT HE'S DISCUSSING.
AND THE ONES THAT THEY DIDN'T DO THAT, PARTICULARLY THE SCHOOL BOARD THAT THEY FAILED.
SO LISTEN TO THE EXPERIENCE OF GETTING A BOND PASSED.
THEY ALL HAD A PACK AND THEY ALL HAD A OVERSIGHT COMMITTEE.
SECONDLY, YOU NEED TO FIT, JUST SO WE'RE CLEAR, THE WETLAND CENTER WAS OFF OF OUR RECOMMENDATION.
WE TOTALLY PULLED THE WETLAND CENTER 'CAUSE THERE WAS 20 SOMETHING MILLION DOLLARS THAT INCLUDED A BUILDING, THE NATURE CENTER, I'M SORRY, THE NATURE CENTER THAT INCLUDED A BUILDING THAT THE PARK DEPARTMENT DIDN'T REALLY ASK FOR
[00:30:01]
AND THEN THEY COULDN'T COME BACK.SO WE LOWERED THAT, THAT WAS $10 MILLION THAT BROUGHT IT DOWN TO 14 MILLION.
AND THEN IN THAT CONVERSATION, WE COULDN'T GET SPECIFIC THINGS ABOUT WHAT THAT 14 MILLION WAS ACTUALLY GONNA FEEL.
SO THE COMMITTEE JUST SAID, IT'S TOO FLUID.
WE DON'T HAVE TIME TO, HES US OVER.
SO THE WETLAND CENTER WAS IN, IT'S BEEN MY EXPERIENCE,
SO THE PARKS, YOU SHOULD BE SPECIFIC ABOUT, YOU'RE GONNA DO THIS, THIS, AND THIS IN THE PARK.
I THINK THAT'S EASY TO PROMOTE IN A PAC COMMITTEE.
THE WETLAND CENTER SHOULD BE SEPARATE.
IT'S GOT A LOT OF SUPPORT IN TOWN AND I THINK THAT CAN BE EASILY SUPPORTED.
THE OTHER ISSUES CAN KIND OF BE, CAN KIND OF BE JUMPED IN.
OKAY? AS LONG AS THERE'S AN OVERSIGHT COMMITTEE AND WE'RE VERY SPECIFIC.
IF WE GO OUT IN THE ASPHALTING, THERE WAS SAT HIM WITH THE MONEY IN THE ASPHALTING WAS 20, WE'RE GONNA DO 20 MILLION ASPHALT.
AND THIS SAYS WE'RE GONNA DO THIS STREET, THIS STREET, THIS STREET, THIS STREET AND THIS STREET.
WELL, YOU BETTER DO THIS STREET, THIS STREET, THIS STREET AND THIS STREET AND THEN GO IN THERE AND START STUFF.
'CAUSE THAT'S WHAT WE'RE GONNA BE TELLING THE PUBLIC, RIGHT? WE'RE GONNA SAY WE'RE DOING THIS STREET, THIS STREET AND THIS STREET.
THEN YOU GO IN THERE AND SWITCH ALL THAT AROUND.
NOW YOU'VE TOTALLY LOST YOUR TRANSPARENCY AND YOUR TRUST FACTOR, AND THAT'S GONNA BE AN ISSUE.
SO YOU HAVE TO DO WHAT THE, THE LANGUAGE CAN BE MERGED, BUT WE HAVE TO PROMOTE SINGLE POINT BULLET ITEMS. AND, AND THOSE DISCUSSIONS TOOK EVERY CIVIC GROUP, EVERY CHURCH GROUP, EVERY COMMUNITY GROUP THAT WE CAN AND GET OUT THERE AND, AND YOU HAVE A PRETTY GOOD CHANCE.
BUT THE PARKS THINGS AND THE FIRE STATION SHOULD BE SPECIFIC TO THE WHAT THEY'RE GONNA DO.
OKAY? UH, I SUSPECT YOU'LL GET A LOT OF SPORTS FROM THE FIRE STATION.
THE FIREFIGHTERS WILL BE OUT THERE SUPPORTING YOU ON THAT.
UM, AND, BUT THE REST OF THE STUFF CAN BE FAIRLY GENERAL SO THAT YOU HAVE SOME FLEXIBILITY, UH, IN THAT MONEY.
UH, AND THAT'S HOW THE SCHOOLS HAS ALWAYS DONE THEIR BONDS.
AND WE'VE ALWAYS HAD MONEY LEFT OVER IN THOSE BONDS.
UM, AND TYPICALLY WHAT WE DID THEN IS WE SENT WHATEVER THE RUNNING MONEY WAS BACK TO THE SCHOOL BOARD AND SAID, OKAY, WE'RE DONE
OKAY? BUT YOU'RE ALLOWED THAT YOU'RE ALLOWED TO DO THE, THE BOND OVERSIGHT COMMITTEE DURING THAT COURSE.
THERE WAS TWO OR THREE TIMES THAT WE WOULD HAVE INSTANCE WITHIN THE DISTRICT, I'M TALKING SAY THEY WOULD COME AND SAY, HEY, CAN WE DO THIS? AND THE DEAL? AND THE POT COMMITTEE SAYS NO, BECAUSE THAT'S NOT WHAT WE TOLD THE COMMUNITY WE'RE GONNA DO.
AND THEN WE ACTUALLY HAD A LAWYER WHO SAYS, WELL, YOUR GENERIC LANGUAGE LET YOU SAY THAT.
I SAID, THAT WASN'T WHAT WE WENT OUT IN PUBLIC AND TOLD THE COMMUNITY WHAT WE WERE GOING TO DO.
AND ONCE WE DO THAT, THEN YOU'RE OKAY.
IF YOU EVER HAVE ANY HOPE WE GET ANOTHER BOND PASSED PARK SALE, THEY OUGHT TO BE SEPARATED.
THE WETLAND CENTER OUGHT TO BE SEPARATED.
THE REST OF 'EM YOU CAN KIND OF COMBINE.
Y'ALL HAVE ANY COMMENTS? IN MY OPINION? THANK YOU.
I I'M JUST GONNA SAY THAT I THINK NT WAS GONNA SAY SOMETHING.
I WAS JUST GONNA, I WAS GONNA DEFINITELY REITERATE THAT WE NEED TO DO WHAT WE, PEOPLE THAT I'VE HEARD FROM WANT US TO DO WHAT WE'RE, WHAT WE SAY WE'RE GONNA DO.
SO I DEFINITELY REITERATE THAT.
UM, AND I THINK THAT MR. BEARD IS CORRECT AS FAR AS PARKS, THOSE DO SELL A BOND.
UM, SO I'M JUST REITERATING WHAT THEY SAID.
AND I, AND I TOLD YOU WHEN WE MET, UH, WHEN I GAVE YOU AN UPDATE SEVERAL WEEKS AGO, THAT THE DEFINITION OF BEAD CHANGED AS WE WENT THROUGH THE, THROUGH THE MEETINGS BECAUSE EVERYONE HAS A DIFFERENT DEFINITION OF NEEDS.
RIGHT? AND I THINK WE CAN HAVE THAT SAME EFFECT ON FOLKS THAT WE TALK TO, UH, WHEN THEY GO, MAN, WE DON'T, WE DON'T NEED, THIS IS ANOTHER WETLAND CENTER, WHATEVER, AND LOOK AT, BUT, BUT THEN YOU PRESENT THE EDUCATIONAL COMPONENT TO THAT, RIGHT? AND IF PEOPLE UNDERSTOOD WHAT REALLY HAPPENED AT, AT THE WETLAND CENTER AND WHAT COULD REALLY HAPPEN WITH THIS NEW ONE, RIGHT? UM, I THINK EACH ONE OF THOSE, THE WAY YOU'VE LAID 'EM OUT, UM, SO I THINK WE GET SUPPORT FOR EVERY SINGLE ONE LISTING THE THREE PARKS.
THE WAY IT, THE WAY IT WORKED OUT IS THE UNI DODGE PARK ADDS SOMETHING THAT BAYTOWN CURRENTLY DOESN'T HAVE IN, IN THE WAY OF, OF FOOTBALL.
THE WAYNE GRAY SPORTS COMPLEX ALLOWS US TO KEEP 67% OF THE CANCEL TOURNAMENTS THAT WE HAVE EVERY YEAR BECAUSE IT RAINED ONE DAY THAT WEEK.
AND IF YOU DRIVE BY THERE ON A WEEKEND, YOU SEE WHAT PARKING'S LIKE.
AND THEN GO NORTH OF TOWN, NORTH OF I 10, BUT THE CITY DOESN'T HAVE A PARK.
AND LOOK AT THE POTENTIAL WITH THE GINA LORETA RUSSELL PARK.
AND ONCE WE CAN SHOW THAT TO THE COMMUNITY ALL ACROSS THE CITY FROM THE SOUTH END, THE MIDDLE TO, TO THE
[00:35:01]
NORTH.AND WE DIDN'T STRATEGICALLY DO THAT, BY THE WAY.
RIGHT? THAT'S JUST THE WAY IT WORKED OUT.
UH, AND LOOK AT WHAT WE GET ON THE NORTH SIDE OF TOWN, UH, FROM THE STANDPOINT OF A, A REGIONAL FACILITY, ANOTHER JENKINS PARK TYPE FACILITY ON THE NORTH SIDE OF, OF I 10, UH, THAT ALSO WILL BRING IN FOLKS TO BAYTOWN, RIGHT? AND THE PARTNERSHIP WITH HARRIS COUNTY AND THE FAMILY ESTATE.
I MEAN THAT, THAT'S A WIN-WIN FOR EVERYBODY.
SO IF, IF WE WERE TO BE ABLE TO SIT DOWN AND TALK TO YOU ABOUT EVERY ONE OF THESE, EVEN REPLACING A STREET, WE'D GET YOU EXCITED ABOUT IT.
AND YOU WOULD REALIZE IT'S NEEDED.
YOU KNOW, WE'RE NOT BUILDING NEW, WE'RE NOT ADDING NEW THINGS.
WE'RE, WE'RE, WE'RE LOOKING AT MOBILITY AND SAFETY.
WE'RE, WE'RE WIDENING STREETS.
CEDAR BY LYNCHBURG, FOR INSTANCE, WHICH IS A HUGE, UH, PARTNERSHIP WITH HARRIS COUNTY.
UM, EVERYBODY THAT LIVES ON THE STREET THAT'S BAD KNOWS IT.
IF IT GETS FIXED, IT'S BETTER.
RIGHT? AND YOU CAN GO THROUGH EACH ONE OF THESE AND, AND SEE THAT IT WILL IMPROVE THE CITY OF BAYTOWN.
AND THAT'S SIMPLY WHAT WE'RE DOING.
IT'S INFRASTRUCTURE, RIGHT? RIGHT.
AND PARKS ARE PART OF OUR AMENITIES, BUT THEY'RE ALSO PART OF OUR INFRASTRUCTURE.
WE HAD SEVERAL ON OUR COMMITTEES, AND I, I GO TO A PARK TWO OR THREE TIMES A WEEK, YOU KNOW.
UM, SO ANYWAY, WE, WE FELT, WE FELT VERY GOOD ABOUT THIS, THIS RECOMMENDATION ON THE SPECIFIC PROJECTS.
AND IF YOU WERE TO LIST EACH ONE OF 'EM, IT WOULDN'T BOTHER ME ONE BIT.
BECAUSE I KNOW WE CAN GET IT DONE.
IT MIGHT BE BENEFICIAL TO YOU GUYS TO HAVE STAFF SUPPLY YOU UNDER EACH OF THESE PROPOSITIONS OFF OF THE LIST.
I, I DON'T KNOW WHAT LIST YOU'RE GOING BY, BUT OFF THE LIST THAT WE FINISH AND SEE THOSE ITEMS ARE KIND OF NUMBERED TO TELL YOU, OKAY, THIS PROPOSITION IS THIS, THIS, THIS, AND THIS.
SO YOU CAN LOOK AT THE DOLLAR AMOUNT AND KNOW, IT DOESN'T HAVE TO BE IN A PROPOSITION, BUT YOU CAN KNOW WHAT IT IS.
I MEAN, THE STREETS IS A BIG NUMBER, BUT THAT'S, IT'S GARTH AND CEDAR.
I MEAN, THERE'S A LOT IN THERE.
AT LEAST I'M GONNA WANT THAT IF I'M GONNA TALK ABOUT IT.
YOU KNOW, IT'LL, IT'LL, IT'LL BE THAT WAY.
AND WHAT WE GAVE YOU WAS, WAS A WORKSHEET, RIGHT? MM-HMM
I THINK WHAT JASON PASSED ON WAS A WORKSHEET.
SO YOU SAW ALL THE INFORMATION, IT WASN'T JUST THE FINAL LIST AND 151 MILLION, RIGHT? THAT'S WHAT THE CONSULTANTS WILL PROVIDE YOU.
IN THE END, WE WANTED YOU TO SEE, WE STARTED WITH, IT WAS OVER $300 MILLION WORTH OF POTENTIAL PROJECTS OF THE 28.
THAT WASN'T GETTING RID OF PROJECTS, THAT WAS JUST CHANGING SOME OF THE ESTIMATES, RIGHT? SO THE MAX WE COULD LOOK AT WAS 2 84.
AND OF THAT 2 84, WE, WE WERE GOOD WITH 1 73 OF IT, RIGHT? BUT THEN THE 1 73 GOT CUT AND TO, TO GET US TO WHERE WE ARE TODAY.
SO WANTED YOU TO SEE, WE, WE CONSIDERED AND DIDN'T RECOMMEND SOME, WE JUST CUT LIKE BAYWAY DRIVE.
IT'S JUST TOO BIG OF A PROJECT FOR NOW.
AND YOU KNOW, IT DIDN'T MAKE SENSE AND IT'S, IT'S A VALID PROJECT, BUT NOT, NOT TODAY.
SO WE DIDN'T, WE DIDN'T EVEN CONSIDER THAT ONE.
SO WE LISTED THOSE SO YOU COULD SEE THE THOUGHT PROCESS WE WENT THROUGH.
WE DIDN'T JUST RANK 'EM ALL AND THE BOTTOM FELL OUT.
WE, WE WOULD WENT THROUGH EVERY SINGLE PROJECT AND BY BREAKING 'EM UP IN THESE CATEGORIES.
AND I THINK WHAT YOU'VE DONE IS VERY CLOSE TO WHAT, AND, AND WE, YOU KNOW, WE CALLED IT PROPOSITIONS, BUT WE WEREN'T THE EXPERTS TRYING TO GO, WE WERE JUST TRYING TO BREAK IT FOR OURSELVES, RIGHT? SO WE COULD UNDERSTAND WHAT WE WERE LOOKING AT IN EACH GROUP OF PROJECTS INSTEAD OF JUST 28 ON A LIST.
SO I THINK WHAT YOU HAVE, JUST PULLING THE FIRE STATION OUT FROM THE WETLAND CENTER IS REALLY THE ONLY CHANGE TO THE WAY WE GROUPED THEM UP.
'CAUSE THOROUGHFARES TOGETHER, STREETS AND DRAINAGE ARE TOGETHER.
UH, AND THEN, UH, NO STREETS ARE, AND SIDEWALKS ARE TOGETHER.
AND THEN WE JUST HAD THE FIRE STATION AND THE WETLANDS CENTER TOGETHER BECAUSE WE LOOKED AT THOSE AS BUILDINGS TOGETHER.
BUT, UH, IF YOU GOTTA SEPARATE THE BUILDINGS, THEN THAT'S JUST ONE EXTRA PROPOSITION.
SO I THINK WHAT, WHAT YOU'VE LAID OUT IS VERY CLOSE TO, TO WHAT WE, HOW WE GROUPED THEM, I THINK, WHICH IS UP TO Y'ALL.
RIGHT? I CAN TELL YOU THAT WE WE'RE, WE'RE READY TO GO.
I WILL TELL YOU, ASSUMING THAT THE INFORMATION WE GOT ABOUT TAX RATES IS CORRECT 'CAUSE I STILL HAVEN'T HEARD THAT INJURY YET.
ABOUT TO GO OVER MY, OKAY, IF IT'S UNDER, THAT'S NOT GONNA RAISE TAXES.
AND, AND I'LL TELL YOU, I PROBABLY HAD 50 PEOPLE TALK TO ME ABOUT THE BOND IN THE LAST FIVE WEEKS.
I HAD 10 AT CHURCH THE OTHER DAY.
AND MY COMMENTS, WELL WAIT TILL COUNCIL DECIDES WHAT THEY'RE ACTUALLY GONNA PUT ON BALLOT BUSINESS.
WE, WE ARE VERY CLEAR BY THE WAY, I HOPE YOU RECALL WE HAD THIS CONFIRMATION NO TAX RATE INCREASE TO STILL A TAX INCREASE.
ANYTIME YOU ISSUE MORE DEBT, IT'S A TAX INCREASE.
RIGHT? SO WE'RE, WE'RE, WE'VE BEEN VERY CLEAR ON THAT.
WE'RE, WE'RE, WE KNOW THAT IT'S A TAX INCREASE.
SO PUTTING IT ON THERE IS WHAT WE'RE GONNA BE TELLING PEOPLE ANYWAY.
IT'S JUST BECAUSE WE'RE ISSUING MORE DEBT, BUT IT'S NOT GONNA RAISE YOUR TAX RATE.
YOU'RE JUST GONNA PAY TAXES LONGER.
THAT THAT'S WHAT IT'S GONNA BE.
YOU'RE GONNA PAY FOR A LONGER PERIOD OF TIME BECAUSE WE'RE NOT RE YOU KNOW, RELIEVING DEBT, WE'RE ADDING MORE DEBT TO KEEP IT STEADY.
SO, UH, I I LOOK AT IT LIKE YOU BUY A HOUSE, IT'S
[00:40:01]
A 30 YEAR MORTGAGE, 15 YEARS INTO IT, YOU NEED A ROOF.20 YEARS INTO IT, YOU HOUSE VALUE'S GONE UP.
YOU, YOU GO GET A HOME IMPROVEMENT LOAN, YOU, YOU OR A SECOND MORTGAGE OR WHATEVER IT IS.
AND, AND YOU STILL HAVE AN ASSET THAT YOU'VE GOTTA TAKE CARE OF AND IT STILL HAS VALUE AND IT'S GROWING IN VALUE AND YOU, BUT YOU GOTTA TAKE ON MORE DEBT AND YOUR MONTHLY PAYMENT STAYS THE SAME, RIGHT? RIGHT.
I APPRECIATE Y'ALL FEEDBACK AND, AND JUST REITERATING THE FACT THAT, YOU KNOW, THESE ARE NEEDS BECAUSE I THINK WHAT WE HEAR A LOT IS THAT, WELL, WE NEED MORE NEEDS VERSUS ONCE.
AND I'M LIKE, THESE ARE NOT ONCE.
AND I THINK THAT'S THE BIGGEST CHATTER RIGHT NOW IS THAT, YOU KNOW, WELL WE'RE DOING A WHOLE BUNCH OF ONCE, NO, THESE ARE NOT ONCE, BUT EVERYONE'S DEFINITION OF NEEDS AND WANTS ARE DIFFERENT ALSO.
AND I HAVE BEEN SAYING THAT TILL I'M BLUE IN THE FACE, WE HAD TO CALIBRATE OURSELVES AS WELL.
RIGHT? I MEAN WE ALL HAD DIFFERENT OPINIONS ON NEEDS AND WANTS.
AND, AND I, YOU KNOW, JUST SAY YEAH, THAT LANGUAGE NEEDS, WANTS.
AND I THINK THE QUESTION TO ASK IS WHAT IS THE PRIORITIES, RIGHT? WHAT NEEDS TO BE DONE IMMEDIATELY? AND I GUESS THE QUESTION I WANT WITH THAT SAID TO ASK YOU GUYS, DO YOU FEEL WHAT YOU PRESENT, WHAT YOU WANNA PRESENT TO US, UM, MEET THAT RIGHT NOW, PRIORITIES THAT NEED TO GET DONE.
'CAUSE I COULD SAY LIKE, YOU KNOW, YOU KNOW, IS MY ROOF A PRIORITY ON MY HOUSE OR DO I NEED A BRAND NEW ORT, RIGHT? SO THE QUESTION IS, IS IT, YOU KNOW, IT'S MORE OBJECTIVE IS, IS IS DOES THIS REALLY MEET THE PRIORITIES? ALL, ALL THESE PROJECTS IS A GOOD START.
SO, SO COUNCILMAN WHAT I'LL TELL YOU IS WE STARTED WITH A LIST OF CAPITAL, CAPITAL PROJECTS THAT THE CITY HAD IN, IN PRIORITY MODE.
WE WERE TOLD THEY ALIGNED WITH THE CITY'S MISSION, UH, THE CITY'S VISION, THE CITY'S PRIORITIES.
SO WE WE'RE NOT SETTING PRIORITIES, WE ARE WORKING WITH THE PRIORITIES WE WERE GIVEN BY THE CITY'S STAFF.
AND AMONG THOSE PRIORITIES, THEY HAD 28 PROJECTS.
AND OBVIOUSLY SOMETHING HAD TO BE 28, SOMETHING HAD TO BE 20 SOMETHING HAD TO BE ONE.
AND WE DIDN'T JUST TAKE THE FIRST 15 AND SAY, WELL, THOSE MUST BE THE MOST IMPORTANT BECAUSE THAT DIDN'T TOUCH ALL THE NEEDS OF THE CITY.
UH, YOU COULD SPEND EVERY DOLLAR YOU CAN COME UP WITH ON ROADS, WE ALL KNOW THAT AND TAKE CARE OF ROADS.
BUT THEN YOU'RE NOT TAKING CARE OF SOME OF THE OTHER NEEDS LIKE FLOODING, UH, ISSUES, YOU KNOW, THROUGH OUR CITY.
UH, YOU'RE NOT TAKING CARE OF, OF SIDEWALK IMPROVEMENTS, WHICH, WHICH ARE REQUIRED FOR A DA COMPLIANCE, RIGHT? SO I BELIEVE IF YOU LOOK AT THE RANKING THAT THE CITY PUT, THE CITY STAFF PUT ON THESE PROJECTS, AND WHILE WE ULTIMATELY ENDED UP WITH THIS WHY WE TOOK DFI AND STERLING OFF THE LIST, ALL THEY'RE VALID PROJECTS AND YOU WANT TO KEEP THOSE THOROUGHFARES, YOU KNOW, IN, IN GOOD SHAPE.
THEY WERE RANKED 20 AND 21 ON THE CITY'S LIST.
SO WE USE THAT AS TO DETERMINE THE PRIORITIES OF WHAT WAS NEEDED.
UH, AND WE ALSO I THINK, AGREED THAT YOU'VE GOT PRIORITIES IN DIFFERENT AREAS, RIGHT? THERE'S, THERE'S ROADS, THERE'S, THERE'S UH, UM, THOROUGHFARES, THERE'S NEIGHBORHOOD STREETS, THERE'S SIDEWALKS, THERE'S DRAINAGE, THERE'S UM, FACILITIES, YOU KNOW, THERE'S NEEDS IN, IN ALL, ALL ACROSS THE CITY.
AND SO YOU TOUCH THE MOST IMPORTANT NEEDS IN EACH OF THOSE AREAS.
SOME OF 'EM MAY SAY WE NEED MORE ROADS FIXED THAN WE NEED A NEW WEAPONS CENTER.
THAT THAT'S, UH, THAT'S AN OPINION, RIGHT? UH, WHAT WE TOOK WAS THE LIST OF PROJECTS WE HAD AND WE JUST COMPARED 'EM AGAINST EACH OTHER.
WE BROKE THEM INTO CATEGORIES TO TRY TO MEET THE NEEDS ACROSS THE CITY AS OPPOSED TO JUST DUMPING ALL INTO, INTO THE STREETS, WHICH YOU COULD DO.
AND IT'D BE, IT'D BE VALID, RIGHT? WE HAVE MORE NEEDS ON STREETS THAN WE HAVE PROBABLY ANYTHING ELSE, UH, AND NOT ENOUGH MONEY TO DO IT.
BUT THEN YOU'RE NOT TAKING CARE OF THE REST OF YOUR, OF YOUR CITY.
SO THAT'S KIND OF THE APPROACH WE TOOK.
THANK YOU FOR CALL Y'ALL FOR TIME.
IF WE NEEDED A NEW TRANSPORTATION AND YOU COULDN'T AFFORD A ROOF AND A CORVETTE, THEN YOU BUY THE ROOF, KEEP YOUR HOUSE DRY AND GO BUY A A A HONDA.
THINK ABOUT, YEAH, YOU'RE TAKING GOOD CARE OF PRIORITIES WITH, WITH THE MEANS YOU HAVE, RIGHT? THAT'S WHAT YOU GOTTA DO.
I APPRECIATE ALL Y'ALL'S FEEDBACK.
UM, I GUESS TO ANSWER THE QUESTION, I'M, I'M OKAY WITH LEAVING 'EM, UM, UH, GENERAL IN NATURE.
UM, I THINK LIKE THEY SAID, DICK, YOU KNOW, WHEN WE GO OUT WITH THE INFO, WE'RE GONNA, WE'RE GONNA HAVE, HAVE THE, THE SET OF PROJECTS THERE.
AND SO, BUT THAT'S WITH THE UNDERSTANDING THAT THE, THERE WILL BE A FUTURE ADDITIONAL CBAC COMMITTEE THAT'S DOING OVERSIGHT WITH STAFF.
YES, THAT'S REPORTING TO THE FINANCE COMMITTEE AND THE CIP COMMITTEE AS WELL.
OKAY? YES, I'M OKAY WITH THAT.
MY KNEE JERK WAS NARROW APPROACH, BUT AFTER HEARING THE CAVEATS, I THINK A BROAD APPROACH, Y'ALL SAY Y'ALL CAN SELL IT.
SO WITH THAT, UM, WE'LL GET TO THE TAX IMPACTS.
WE HAVE JOE MORROW HERE, HE TOP AND HE'LL DISCUSS
[00:45:04]
NO TAX RATE INCREASE SHOW, IS THAT WHAT YOU'RE SAYING? YEAH, NO TAX.WELL, I GUESS THERE IS 'CAUSE WE'RE SELLING DEBT, RIGHT? IF WE DIDN'T, WE'D DROP.
THIS IS WHAT WE PRESENTED WHEN WE FIRST MET WITH THE FINANCE COMMITTEE.
THAT'S BEEN MODIFIED SOMEWHAT.
WHAT I DID IS ONE, THE INTEREST RATE FOR 150 MILLION 151 AND CHANGE WENT UP TO 5%.
GOT WITH FRANK AND THERESA AND I SAT DOWN AND KIND OF WENT THROUGH THE PROJECT LIST AND WE TALKED ABOUT WHAT IS OUR USEFUL LIFE AND WHAT CAN WE DO LIKE PARK PROJECTS AND, AND DOING THE MAJORITY OF WORK THERE AT, UH, THE SPORTS COMPLEX, WELL, THAT CAN BE 30 YEAR DEBT.
SO DRAINAGE PROJECTS, YOU KNOW, ONCE YOU, ONCE YOU GET THOSE THINGS DONE, WHETHER IT'S GRADING OR A, A BERM OR WHATEVER IT IS, IT'S THERE, UH, 30 YEARS.
SO THE SAME THING WITH LAND, SAME THING WITH A NEW BUILDING THAT A 30 YEAR LIFE, JUST LIKE IT WAS A NEW HOUSE AND YOU'RE BUYING A, A A 30 YEAR MORTGAGE.
OTHER PROJECTS, UH, AREN'T THAT, YOU KNOW, THEY'RE, THEY'RE 20 YEARS.
UH, I THINK I RAN ONE AT, UH, 10 YEARS, WHICH WAS PURCHASE OF LAND, WHICH COULD HAVE GONE LONGER, BUT IT WAS, UH, FIRE STATION DESIGN AND I SAID, NOPE, WE'RE GONNA, AND THAT GOES BACK TO WHAT THE TEXAS WATER DEVELOPMENT BOARD HAS US DO WHEN WE DO PLANNING, PLANNING AND DESIGN MONEY BEFORE WE HAD CONSTRUCTION.
SO I JUST FOLLOWED THAT AS A RULE OF THUMB.
WE CAN CHANGE THAT, WE CAN REVIEW ALL OF THESE, BUT THAT WAS THE APPROACH THAT I TOOK FOR THIS RUN IS RAISE THE INTEREST RATE, SEE WHAT WE CAN DO WITH, UH, UH, WHAT WE REALLY THINK THE USEFUL LIFE OF OUR PROJECTS ARE.
I THINK WE ONLY REALLY NEED TO LOOK AT ONE OF THESE, WHICH WOULD BE THE ONE THAT HAD THE 6% GROWTH.
YOU WANT ME TO TURN THE LIGHT OFF SO IT'S EASIER TO SEE? YES, THAT GREEN UP ON TOP THERE? YEAH, IT'S SMALL.
HERE'S OUR COLUMN WITH OUR ASSESSED VALUE.
WE'VE GOT, UH, FOR THE, STARTING THE FISCAL YEAR END OF 2025, WHICH IS, IS WHAT WE'RE IN RIGHT NOW, THAT'S THE CERTIFIED VALUE FOR 2026.
WE TOOK OUR ESTIMATE, PRELIMINARY ESTIMATE OF VALUE THAT WE GOT, UH, FROM THE APPRAISAL DISTRICT IN MAY, AND THEN WE GREW IT BY 6% OUT TO 2031.
AND, UH, THAT'S, UH, THAT'S WHERE WE CA THAT THIS COLUMN IS YOUR EXISTING DEBT PAID WITH AVALOR TAXES.
OKAY? THIS COLUMN IS, UH, THE CERTIFICATES OF OBLIGATION THAT WE'RE ABOUT TO SELL IN THE NEXT THREE, FOUR WEEKS.
AND THAT'S 17 AND A HALF MILLION.
THAT WILL BE ON THE, UH, AVALOR TAX RATE.
WHAT I DID WITH THIS, BECAUSE I WAS THINKING ABOUT THIS COLUMN RIGHT HERE, RIGHT? YOU SEE THE RED UP THERE, UH, 0.26353, THAT'S OUR TAX RATE RIGHT NOW.
SO WHAT I WANTED TO DO IS, UH, KEEP THAT TAX RATE AS WE'RE GOING INTO THE VOTERS APPROXIMATELY THE SAME.
SO THAT RUNS OUT AT ABOUT 2 6 2 2 9.
ONCE WE GET CERTIFIED VALUE IN A WEEK, 10 DAYS, TWO WEEKS, WHATEVER IT IS, HARRIS COUNTY'S THE LAST ONE TO REPORT.
I THINK THERESA SAID CHAMBERS COUNTY IS ALREADY IN, BUT WE'RE REALLY WAITING ON, UH, HARRIS COUNTY TO FINISH UP THEIRS.
UM, THEN WE'LL BE ABLE TO GO AND CORRECT THIS MOUNT AMOUNT AND REALLY DIAL THIS IN SO THAT WHEN WE GO INTO THE MARKET IN A FEW WEEKS, I'LL BE ABLE TO KNOW WHAT THAT NUMBER NEEDS TO BE TO PRODUCE THE TAX RATE THAT WE'RE LOOKING FOR AND UH, AND HIT IT DOWN, TIGHTEN THE SCREWS ON THAT, AND WE'LL HAVE OUR TAX RATE AT APPROXIMATELY THE SAME THAT WE HAD THIS YEAR.
AFTER THAT YOU CAN SEE, YOU KNOW, WE DROPPED DOWN TO ABOUT 24, 22 AND A HALF.
WE GO UP, UH, A LITTLE BIT THERE, BUT THAT'S BECAUSE THE MAJORITY OF OUR BONDS ARE GONNA BE SOLD IN THESE FIRST THREE YEARS, RIGHT? WE'RE COMING DOWN HERE AND THIS IS GONNA BE FOUR AND A HALF MILLION AND FOUR AND A HALF MILLION, SO 9 MILLION.
SO, YOU KNOW, WE'RE SELLING ABOUT 141 MILLION IN DEBT IN THESE FIRST THREE YEARS AND WE'RE STILL DROPPING OUR TAX RATE.
UM, JUST FOR CURIOSITY SEEKERS, THIS 26 CENTS HERE,
[00:50:01]
IF I WERE TO SEE HOW MUCH DEBT WE COULD DO AND KEEP THAT 26 CENTS DOWN THROUGH OUR LAST ISSUE HERE, UH, THAT WOULD BE 183,450,000.I DID A LITTLE BIT OF, UH, MODIFICATION TO THAT IS THAT, UH, I ONLY DID 20 YEARS, RIGHT? I KEPT THE 5%, BUT I SAID, AH, WE'RE JUST GONNA DO 20 YEARS.
'CAUSE THIS IS JUST, YOU KNOW, WE WE'RE JUST, UH, LOOKING FOR A, AN APPROXIMATE AMOUNT OF WHAT WOULD THE MAXIMUM BE, BUT THAT'S WHERE IT FELT.
SO IF WE WOULD'VE DONE, IF I WOULD'VE RUN IT OUT LIKE THIS, UH, WE WOULD'VE BEEN, YOU KNOW, A LITTLE BIT HIGHER, BUT I DON'T KNOW THE PROJECTS THAT WOULD BE ADDED.
SO ANYWAY, THAT'S WHAT I DID JUST TO GET, UH, AN AMOUNT SO THAT Y'ALL WOULD KNOW, UH, WHAT IF WE WANTED TO KEEP OUR TAX RATE AT 26.3, HOW MUCH COULD WE ISSUE? UH, THAT'S IT.
SO AT 151 MILLION IN WHATEVER ODD NUMBER IT WAS, UM, YOU'RE REALLY GONNA BE LOOKING AT, UH, A TAX DECREASE.
UH, SO WE'LL NEED TO BE THINKING ABOUT THAT BECAUSE MY GUESS WOULD BE IS YOU MORE DEBT, YOU'RE GONNA BE ISSUING MORE DEBT, YOU'RE GONNA GO BACK TO THE VOTER SOMEWHERE AROUND HERE, RIGHT? YOU'RE GONNA GET THIS LAST TRANCHE DONE AND THEN WE'RE GONNA BE BACK.
UM, AND, AND THIS COULD SLIDE A LITTLE BIT, RIGHT? I MEAN, WE'RE, WE'RE, WE'RE DOING BEST EFFORTS HERE, BEST INFORMATION THAT WE HAVE TODAY.
BUT, UM, THAT'S, THAT'S WHERE WE ARE.
UH, DOES ANYBODY HAVE ANY, ANY QUESTIONS? AND IT OBVIOUSLY LOOKS BETTER IF I DO NINE PER THAT 9% GROWTH.
JOE, CAN I ASK A QUESTION? YES.
JUST FOR CLARITY PURPOSES, FOR PEOPLE ONLINE AND, UM, THE 26TH IS JUST THE DEBT PORTION OF THE TAX RATE.
IT DOES NOT IMPACT THE MAINTENANCE AND OPERATION PORTION OF THE TAX RATE.
AND SO WHEN YOU SAY THE DEBT RATE DOESN'T DECREASE, IT DOESN'T LOOK AT THE ENTIRE DEBT RATE OF THE 70 CENTS, WHICH WE CURRENTLY HAVE.
IT'S JUST STRICTLY LOOKING AT THE DEBT PORTION OF THE TAX RATE.
AND SO FOR THE COUNCIL AND FOR THE FINANCE COMMITTEE, THAT IS AN EXTRA PIECE THAT YOU HAVE TO LOOK AT.
YOU HAVE A NUANCE THAT YOU HAVE TO LOOK AT WITH THE M AND O, UM, BECAUSE IF YOU, YOU KNOW, THOSE TWO PIECES WORK TOGETHER.
AND SO IF YOU GO NO NEW REVENUE RATE, UM, AND IT'S A, A GOOD YEAR, IT'S A 9% YEAR, INSTEAD OF A 6% YEAR, YOU COULD DROP THE M AND O HEAVILY.
AND IF YOU'RE STAYING AT THE 26 AGAIN, AND YOU STILL WANT TO BE AT 70 CENTS OR BELOW 70 CENTS, THEN UM, IT COULD FORCE THE M AND O TO BE, IT, IT COULD FORCE THE M AND O TO TAKE A HIT, OR MAYBE I'M SAYING IT BACKWARDS.
IF THE, IF WE HAD A WORSE OFF YEAR, IT COULD FORCE THE M AND O TO HAVE A LOWER OR A, UH, A LOWER AMOUNT COMING IN, UH, BECAUSE THE, THE DEBT RATE IS GOING TO, THE DEBT RATE IS GOING TO STAY CONSTANT TO BE ABLE TO PAY THE DEBT SERVICE NO MATTER WHAT.
AND SO WE JUST HAVE TO BE, M AND L IS GONNA FLUCTUATE.
VERY GOOD POINT, BECAUSE I LIVE IN THE, I LIVE IN THE DEBT SIDE OF THINGS AND DON'T ALWAYS THINK THAT YOU GOTTA OPERATE THE CITY TOO.
THAT'S, THAT'S THE JOB YOU HAVE TO PAY FOR THAT ROOF IN THAT CORVETTE.
ANY QUESTIONS ON THIS? NO FURTHER QUESTIONS.
I'D LEFT THIS BREAKDOWN, SO THANK YOU.
YEAH, I GUESS THE ONLY, UM, VARIABLES OF WHAT COULD CHANGE, OBVIOUSLY WE'RE, WE'RE PROJECTING GROWTH BEST WE CAN, THAT CAN CHANGE, I GUESS INTEREST RATE COULD USED FIVE I GUESS FOR ALL OF THIS.
AND RATES COULD GO UP OR DOWN IN, IN, YEAH.
I USED 4 35 FOR THIS BECAUSE WE'RE SO CLOSE TO BEING INTO THE MARKET.
UH, BUT, UH, UH, THAT'S ABOUT RIGHT WHERE WE'RE GONNA BE AND THEN 5% FOR THE REST.
AND WE HAVEN'T SEEN RATES THAT HIGH IN A WHILE, BUT THAT DOESN'T MEAN THAT WE WON'T, THEY DROP OVER NEXT FIVE YEARS.
CAN I ASK A QUESTION? YES, SIR.
SO IN FIVE YEARS, UH, VOTERS APPROVE THIS.
FIVE YEARS LATER WE'RE, WE'RE DONE.
UH, WHERE WOULD YOU SEE THAT THE CITY STANDS ON BEING ABLE TO GO OUT FOR ANOTHER GEO BOND? LIKE I WOULD, I WOULD CERTAINLY THINK IF, IF WE'RE
[00:55:01]
ISSUING 141 MILLION IN THE FIRST THREE YEARS, THAT WE ARE THINKING RIGHT HERE, UM, THAT WE'RE GETTING A COMMITTEE TOGETHER AGAIN.SO THIS IS 20, 26, 27, 28, 29.
BY 2030, WE'RE LOOKING AT, AT 29, 20, 29, 20 30.
WE'RE LOOKING AT GOING OUT AGAIN.
BECAUSE ONCE YOU'RE DOWN HERE, UH, THIS IS LIKE, UM, I THINK I DID 5 MILLION A YEAR FOR, UH, UH, ASPHALT OVERLAY, RIGHT? I THINK THAT WAS OR 4 MILLION, 4 MILLION IN THE YEAR.
AND THEN THE OTHER ONE WAS SOMETHING VERY SIMILAR, THAT IT WAS JUST, YOU KNOW, DIVIDED OUT AN EVEN AMOUNT.
SO, YOU KNOW, THE MAJORITY OF YOUR PROJECTS ARE UNDERWAY.
UH, WE, WHAT WE TALKED ABOUT WAS THE SCHEDULE WAS THE KIND OF THE BEST CASE ON EACH ONE.
SO FOR HIM TO DO HIS PROJECTIONS, I ASSUME, YOU KNOW, WELLS AS SOONEST WE COULD DO EACH PROJECT.
UM, PROJECTS COULD BE DELAYED IF YOU WANT TO SPREAD OUT THE DEBT, YOU KNOW THAT THAT'S A STRATEGIC, UH, MOVE ON THE FINANCE SIDE, RIGHT? WE SHOULD GET EVERYTHING DONE IN THE, IN THE TIMEFRAME, YOU KNOW, AND YOU CAN, YOU CAN EQUALLY SPACE IT OUT OR AS BEST YOU CAN TO, TO MANAGE THAT, THE INCREASE OR THE HITS THAT YOU HAVE.
BUT, BUT THE GOAL WOULD BE THAT, YOU KNOW, THIS IS ONGOING NEED THE CITY HAS WITH INFRASTRUCTURE IN FIVE OR SIX YEARS.
THERE'S, THERE'S STILL MORE ROADS THAT NEED TO BE FIXED.
THERE'S STILL MORE DRAINAGE ISSUES ON THE CITY'S MASTER DRAINAGE PLAN.
UH, THERE'S THE NEW FIRE STATION THAT NEEDS TO BE CONSTRUCTED, NOT JUST DESIGNED AND, AND UH, AND LAND FOR IT.
SO, YOU KNOW, THAT'S, THAT'S THE GOOD PART IS KNOWING THAT IF YOU CAN LAY THE GROUNDWORK FOR THIS TO CONTINUE EVERY FIVE, SIX YEAR CYCLE, THAT'S WHAT FOLKS GET USED TO AND IT JUST BECOMES WHAT WE NEED TO DO.
AND IN THE PAST I CAN TELL YOU THAT EVERY, EVERY BOND WE, MIKE CAN TELL YOU WE, WE'VE NEVER HAD A BOND THAT DIDN'T HAVE A TAX RATE INCREASE RATE INCREASE, LIKE SIGNIFICANT RATE INCREASE.
WE'VE BUILT UP CAPACITY SOMEHOW.
AND THAT'S, THAT'S THE STRATEGY WE'VE TALKED ABOUT IS MOVING TO JUST GEOS AND IT'S A CYCLE, RIGHT? WE, WE PROVE THAT WE CAN GET THESE DONE OVER THE NEXT FIVE YEARS.
WE STICK TO THE PLAN AND THEN WE, YOU KNOW, WE SEE WHAT'S NEXT UP, WHAT'S ON THAT.
AND IT HELPS, IT HELPS PUBLIC WORKS.
UM, BECAUSE I MEAN, WE, WE CAN CHANGE, COUNCIL PRIORITIES CAN CHANGE, BUT AT LEAST THEY KNOW FOR THE NEXT FIVE YEARS HERE'S THE STRATEGY AND THEY CAN GO EXECUTE THAT WITHOUT PRIORITIES SHIFTING AROUND.
WHAT GIVES US THE CAPACITY IS THIS RIGHT HERE, YOUR EXISTING DEBT, SEE WE'RE 14 MILLION, 13, 12, 10, 9.
THAT FALL OFF IS WHAT GIVES YOU CAPACITY.
AND, AND WHAT WE WERE, WHAT WE WANNA DO AND HAVE, HAVE MADE THE STRIDES TO DO IS TO KEEP THAT, YOU KNOW, WE'RE GOING UP AS WE'RE SELLING THE DEBT, BUT ONCE WE CROSS THAT CREST OF OUR LAST ISSUE, WE ARE COMING DOWN SO THAT WE'RE NOT, WE'RE NOT CAUSING FUTURE COUNCILS.
UH, A PROBLEM WITH COMING BACK TO THE MARKET.
WHEN YOU SAY CONSTANT AT 26, THEORETICALLY.
YOU CAN PLAN MUCH BETTER WHEN YOU STAY CONSTANT INSTEAD OF THE UPS AND DOWNS EVEN IN TAX RATES.
ANYTHING ELSE THERESA? OKAY, SO JUST DIRECTION.
ONE, ARE YOU OVER, ARE YOU OKAY GOING OVER ONE 50? 'CAUSE THAT WAS Y'ALL'S LAST DIRECTION WAS 1 51.
NO, I TRYING TO PUSH YOU, I'M TRYING TO PUSH YOU.
THE OTHER DIRECTION THAT WE RECEIVED IS WHAT JONATHAN HAD SET UP.
THE GENERAL IDEA OF WHAT JONATHAN HAD SET UP, UH, FOR PRO FOR THE STREETS AND THE THOROUGH AFFAIRS IS FAIRLY GENERAL, BUT FOR THE OTHER ONES BY LAW THAT ARE ARE MORE SPECIFIC, THAT'S HOW THEY'RE SET UP AND SEPARATING THE FIRE STATION FROM THE PARKS AS WELL.
JUST MAKING SURE THAT WE'RE CAPTURING EVERYTHING.
YOU GOOD? AND Y'ALL WANTED MORE SPECIFICITY ON THE FIRE STATION THOUGH.
LET'S, WE'LL SPECIFICALLY REFERENCE THAT ONE THAT WE'RE DOING.
IT IS ONE SPECIFIC FIRE STATION, RIGHT? I MEAN THERE'S NO LET'S DO THAT.
SO KEEP THE FIRE STATION SPECIFIC, RIGHT? FIRE STATION NUMBER FOUR.
CAN WE GO BACK TO THE LANGUAGE I'D LIKE ACQUISITION AND PLANNING, BUT IT'S, IT'S JUST A PLANNING ACQUISITION AND PLANNING FIRE STATION NUMBER FOUR.
SO, SO WE'LL CHANGE THAT TO FIRE STATION NUMBER FOUR.
[01:00:03]
OKAY.YEAH, I THINK THAT'S THE LAST OLD FIRE STATION IN THE CITY, RIGHT? FOUR.
MY ONLY QUESTION THERE, 'CAUSE WE'VE TALKED ABOUT HAVING THE FLEXIBILITY EVERYWHERE ELSE.
IF WE HAD FUNDS LEFT OVER THERE, IF WE LEFT IT AS IS AND HAD ONES LEFT OVER, COULD WE MAKE NEEDED REPAIRS TO OTHER STATIONS? IF, WELL, WHAT WE COULD DO, SO ONE, ONE WAY WE COULD DO IT IS WE COULD DO, AND WE COULD SAY TWO FIRE STATIONS INCLUDING FIRE STATION NUMBER FOUR.
SO THAT WOULD BE ONE THING THAT WE COULD DO.
AND THEN YOU WOULD BE OBLIGATING YOURSELF TO DO SOMETHING FOR FIRE STATION FOUR FIRST.
THE BENEFIT OF THAT IS YOU'VE GOT FIRE STATION FOUR IN THE PROPOSITION.
THE RISK ASSOCIATED WITH THAT IS THAT IT GENERALLY TAKES YOUR FIRE STATION FACILITIES OUT IF, IF THAT ONE WERE TO FAIL FROM, FROM, FROM COS.
BUT THAT'S JUST, THAT'S THE BALANCE.
THE INCLUDING GIVES YOU THE FLEXIBILITY.
IF IF WE JUST NAME THE, NAME IT ON A, ON ITS OWN, THEN YOU LOSE SOME OF THAT FLEXIBILITY.
SOME OF WHAT WILL GET PEOPLE TO VOTE IS, LIKE I SAID, THE AREA THAT THE PROJECT IS IN.
IF THEY KNOW IT'S THE FIRE STATION THAT SUPPORTS THEIR SIDE OF TOWN OH YEAH.
THEY'RE, THEY'RE, THEY'RE GONNA BE IN FAVOR OF A, YOU KNOW, SMALL, NO FEMALE FACILITIES, NO ROOM FOR EQUIPMENT, FIRE TRUCKS DON'T FIT ANY MORE STATION.
SORT OF HAPPENING TO D UH, STATION TWO.
THAT'S WHY I SAID I THINK FOUR IS THE LAST ONE.
SO THAT'S, THAT'S MY ONLY QUESTION IS WHAT WOULD WE WANT TO DO ON THE, I MEAN WE CAN GO WITH THE, INCLUDING STATION FOUR.
THAT WAY IF THERE'S ANY ADDITIONAL FUNDS, I'M, WE HAVE REPAIRS NEEDED AT OTHER STATIONS, WE DEFINITELY HAVE REPAIRS.
THAT'S WHAT I, I RECALL SEEING, AGAIN, MY GUT SAYS SPECIFIC, BUT THEN YOU KNOW, YOU WANT ROD FOR ALL FIRE STATIONS IF YOU HAVE MONEY LEFT OVER.
SO LET'S DO INCLUDING LIKE WE DID WITH THE BARS, INCLUDING YEAH.
AND WE SEPARATED THE, THIS ONE IS INCORRECT.
I THINK IT'S ONLY 13 MILLION FOR THE WETLAND CENTER HERE.
IT'LL BE REWRITTEN, IT'LL BE REWRITTEN, IT'LL BE SPECIFIC WETLANDS.
AND THEN THE OTHER PARKS ARE SEPARATE AS WELL, INCLUDING THE, THE OTHER PARKS.
IS THAT ALL THE DIRECTION YOU NEEDED FROM, THAT'S ALL WE NEED RIGHT NOW.
WELL THEN WE'VE ADDRESSED ALL POSTED AGENDA ITEMS. THIS MEETING IS NOW ADJOURNED.