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AN ANNOUNCEMENT OF QUORUM[ CITY OF BAYTOWN NOTICE OF MEETING CITY COUNCIL WORK SESSION THURSDAY, AUGUST 13, 2026 4:00 P.M. COUNCIL CHAMBER, CITY HALL 2401 MARKET STREET, BAYTOWN, TEXAS 77520 AGENDA CALL TO ORDER AND ANNOUNCEMENT OF QUORUM ]
AT 4:01 PM WE'RE GONNA START[1. CITIZEN COMMENTS Notice is hereby given that in accordance with the Texas Open Meetings Act, Texas Government Code, Chapter 551, prohibits the City Council from discussing, deliberating, or considering, subjects for which public notice has not been given on the agenda. Issues that cannot be referred to the administration for action may be placed on the agenda of a future City Council Session.]
OFF WITH CITIZEN COMMENT.I EXPLAINED TO HER THAT SHE ONLY USED THREE MINUTES, BUT SHE HAD THESE PEOPLE, SO THEY'RE NOT GONNA BE ABLE TO GIVE HER TIME.
WE DO WHAT WE WHAT IF THEY ASK FOR AN EXTENSION OF PEN? OKAY.
WE HAVE SEVERAL PEOPLE SIGNED UP TO SPEAK FOR CITIZEN COMMENT.
WE'RE GONNA START OFF WITH A MR. WHITE RYAN SHEPP OF THE BAYTOWN LITTLE THEATER.
AND THE PURPOSE OF CITIZEN COMMENT IS TO GIVE ALL INTERESTED CITIZENS THE RIGHT TO EXPRESS THEIR VIEWS.
EVERYONE DESIRING TO SPEAK SHOULD EITHER HAVE SIGNED THE APPROPRIATE LIST IN THE FOUR YEAR OR EMAIL THE CITY CLERK PRIOR TO THE POSTER TIME OF THIS MEETING.
EACH CITIZEN SHALL GIVE HIS OR HER NAME AND ADDRESS IN ORDER TO PROVIDE A PROPER RECORD OF THESE COMMENTS.
THE RULES ALLOW EACH PERSON ONE MINUTE TO SPEAK.
A CITIZEN MAY PASS HIS OR HER TIME TO ANOTHER PERSON WHO HAS REQUESTED TO ADDRESS COUNSEL.
HOWEVER, NO CITIZEN'S REMARKS SHALL EXCEED THREE MINUTES IN TOTAL.
EITHER THE ONE MINUTE OR THE THREE MINUTE LIMIT MAY BE EXTENDED BY MAJORITY VOTE OF COUNSEL.
I ENCOURAGE EVERYONE TO BE AS BRIEF AND TO THE POINT AS POSSIBLE.
PLEASE KEEP IN MIND COUNSEL CANNOT DISCUSS OR DELIBERATE ON ITEMS FOR WHICH PUBLIC NOTICE HAS NOT BEEN GIVEN ON THIS AGENDA.
SO WE'RE GONNA START OFF WITH MR. RYAN.
IS IT SHEP SHEPPEY? SHEPPEY? UH, PLEASE STATE YOUR ADDRESS.
UH, MY ADDRESS IS SECOND EAST TEXAS AVENUE, BAYTOWN 7 7 5 2 0.
UM, MY NAME IS RYAN SHEEY AND I'M WITH BAYTOWN LITTLE THEATER.
UH, WE HAVE FOUR OF US SPEAKING, SO I'D LIKE TO REQUEST 10 MINUTES TOTAL BETWEEN THE FOUR SPEAKERS.
10 MINUTES TOTAL BETWEEN THE FOUR.
WE, YOU CAN REQUEST TIME FOR YOURSELF.
AND THEN OTHER PERSONS, IF THEY NEED MORE TIME, THEY CAN REQUEST TIME ALSO, ADDITIONALLY.
SO ARE YOU ASKING FOR MORE TIME FOR YOURSELF? I WOULD JUST LIKE TO GET A TOTAL OF TWO MINUTES FOR MY TIME PLEASE.
I'M GONNA NEED A MOTION TO GIVE HIM AN EXTRA MINUTE OF TIME.
ALL IN FAVOR? ANY OPPOSED? MOTION CARRIES.
GOOD AFTERNOON, HONORABLE MAYOR AND COUNCIL MEMBERS.
THANK YOU FOR TAKING THIS OPPORTUNITY TO SPEAK TO US.
MY NAME IS RYAN SHEPPEY AND I'M HERE TO KICK OFF THE CONVERSATION ABOUT THE, THE MAR MUSTANG MARTHA MOVIE PROJECT, WHICH IS INSPIRED BY TRUE EVENTS THAT HAPPENED HERE IN BAYTOWN.
I AM RESPECTIVELY ASKING, UM, FOR ALL QUESTIONS TO BE HELD TILL AFTER, UM, SOME OF US HAVE SPOKEN, UH, DUE TO THE TIME LIMIT.
UH, BUT AGAIN, REALLY APPRECIATE YOUR TIME.
I AM A BAYTOWN RESIDENT AND I'VE PROUDLY BEEN INVOLVED WITH BAYTOWN LITTLE THEATER FOR THE PAST 10 YEARS.
AND I'M CURRENTLY SERVING AS PRESIDENT FOR THIS WONDERFUL ORGANIZATION.
I'VE HAD THE PLEASURE IN MEETING JENNY WALDO OVER A YEAR AGO, WHERE WE PERFORMED A STAGED READING OF MUSTANG MARTHA USING OUR LOCAL TALENT AND SUPPORT BY MULTIPLE LOCAL BUSINESSES.
THE STAGED READING RECEIVED VERY POSITIVE FEEDBACK FROM THE AUDIENCE WITH MANY OF THEM BEING AROUND DURING THE TIME MUSTANG MARTHA TAKES PLACE.
SINCE THEN, BAYTOWN LITTLE THEATER AND MYSELF HAVE CONTINUED TO SUPPORT THIS PRODUCTION AS IT IS AN INCREDIBLE STORY OF SOMEONE FROM OUR CITY AND COMMUNITY, AND IS AN EXCELLENT OPPORTUNITY FOR LOCALS TO BE INVOLVED ON SCREEN AND BEHIND THE SCENES.
UH, NOT TO MENTION HAVING ANOTHER FILM IN BAYTOWN, JUST LIKE JOHN WAYNE'S HELLFIGHTERS AND ROBOCOP WOULD BE AMAZING.
UH, I WILL NOW PASS THINGS OFF TO ALFRED WHO CAN SPEAK ON THE NEW STATE AND HOUSTON INCENTIVES FOR THE FILM INDUSTRY AND ECONOMIC BENEFITS TO CITIES LIKE BAYTOWN.
SO NOW WE HAVE MR. ALFRED CES.
IF YOU WOULD PLEASE STATE YOUR ADDRESS FOR RECORD.
I'M, UH, MY ADDRESS IS 1-809-HARVARD HOUSTON, TEXAS 7 7 0 0 8.
UH, MY NAME IS ALFRED CERVANTES.
I'M THE FILM COMMISSIONER OF THE HOUSTON FILM COMMISSION, UH, RIGHT DOWN THE STREET.
UM, I AM HERE TO SPEAK ON BEHALF OF GINNY WALDO AS A, UH, ESTABLISHED FILMMAKER IN OUR COMMUNITY.
UH, SHE'S MAKING THIS MOVIE, UH, MUSTANG MARTHA, AND WANTS TO MAKE IT IN BAYTOWN, TEXAS.
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WORK EVERY DAY TO PROMOTE HOUSTON, THE GREATER HOUSTON AREA AS A PRODUCTION DESTINATION FOR FILM AND TELEVISION.AND, UH, BAYTOWN IS CERTAINLY WITHIN OUR PURVIEW.
WE ARE LOCATED IN DOWNTOWN HOUSTON AND WE COVER A 60 MILE RADIUS.
SO WE'RE HAPPY TO INCLUDE ALL THE COMMUNITIES AROUND HOUSTON MARKETING AND THE PROMOTING THEM AS A PRODUCTION DESTINATION TO BRING ECONOMIC BENEFIT IN THE WAY OF FILM AND TV PRODUCTION.
UH, JENNY, I'VE KNOWN JENNY FOR MANY, MANY YEARS.
SHE'S MADE A FEATURE FILM IN HOUSTON.
SHE'S A FILM PROFESSOR AT, UH, HOUSTON CITY COLLEGE, AND SHE'S AN ESTABLISHED FILMMAKER.
SO, UH, I'M HERE TO SPEAK ON HER BEHALF.
BUT WE ALSO, IN THE PAST, UH, YEAR AND A HALF, ESTABLISHED A NEW INCENTIVE PROGRAM FOR NARRATIVE FEATURE FILMMAKING, WHICH IS WHAT THIS PROJECT IS.
AND SO WE, UH, AT THE HOUSTON FILM COMMISSION ARE OFFERING PRODUCERS 10% OF WHAT THEY SPEND WITHIN A 60 MILE RADIUS, HIRING LOCAL PEOPLE, LOCAL CAST, LOCAL CREW, LOCAL VENDORS.
WE ARE OFFERING 10% BACK TO PRODUCERS WITH A CAP BACK PER PROJECT OF A HUNDRED THOUSAND BACK PER PROJECT.
AND SO WE HAVE ENOUGH FUNDS FOR FOUR FEATURE FILMS PER YEAR.
UH, WE'VE HAD FOUR FEATURE FILMS GO THROUGH THIS PROGRAM IN THE LAST YEAR AND A HALF.
AND, UH, I, UH, AGAIN, I'M HERE TO SAY THAT WE ARE ALSO HERE TO HELP JENNY MAKE HER FILM.
UH, AND, AND, AND HER WISH IS TO MAKE IT HERE IN BAYTOWN.
AND SO WE HAVE THIS NEW OFFERING, BUT ALSO ON THE STATE LEVEL, THERE ARE NEW INCENTIVES, UH, UP TO 31% BACK FROM THE STATE OF TEXAS OF WHAT A PRODUCER SPENDS IN THE STATE ON TEXAS, RESIDENTS, TEXAS CAST TEXAS CREW, TEXAS VENDORS.
AND SO THAT'S A NEW, UH, INITIATIVE THAT BECAME EFFECTIVE LAST SEPTEMBER 1ST.
AND SO, UH, THERE ARE TWO, UH, STATE LEVEL INITIATIVE, UH, INCENTIVE PROGRAM, AND A NEW LOCAL, UH, INCENTIVE PROGRAM THAT WE HAVE FOR NARRATIVE FEATURE FILMMAKERS.
AND THAT WOULD APPLY FOR THIS PROJECT AS WELL.
SO I'M HERE AGAIN, JUST TO SPEAK ON BEHALF OF JENNY AS AN ESTABLISHED FILMMAKER AND SAY THAT ANY SUPPORT YOU CAN GIVE HER PROJECT IS, IS, UH, GREATLY APPRECIATED.
31 0 9 REBA DRIVE, HOUSTON, TEXAS 7 7 0 1 9.
I'M A FILM PRODUCER ORIGINALLY FROM LA I HAD THE FORTUNE OPPORTUNITY TO MOVE TO HOUSTON AND I ESTABLISHED A PRODUCTION COMPANY OUT OF HOUSTON WHERE I'VE WORKED FOR THE LAST 25 YEARS WITH MY TEAM ON, WITH EVERY MAJOR FILM STUDIO.
WE'VE WORKED FOR HBO WARNER BROTHERS, NETFLIX, SONY PICTURES, MGM, YOU NAME IT, WE'VE DONE IT.
UH, WE'VE WORKED ON SCORES OF FILMS AND ACTUALLY PRODUCED A LOT OF FILMS OUT OF TEXAS.
OUR LATEST MANDATE IS TO REALLY FOCUS ON CURATING TEXAS FILM.
AND SO THERE'S A, A PUSH FOR TELLING TALES TOLD BY TEXANS.
SO YOU CAN IMAGINE NOT ONLY WE'VE KNOWN JENNY FOR YEARS, BUT WE'RE REALLY, UH, SUPPORTIVE OF THE IDEAL OF DOING MUSTANG MARTHA PUTTING A FOCUS ON BAYTOWN AND TELLING THIS MUCH NEEDED STORY.
SO WE'RE THE PRODUCTION HOUSE THAT IS GONNA SIT OVER IT, KIND OF OVERSEE AND MAKE SURE THE PRODUCTION'S DONE RIGHT.
WE'RE HELPING HER WITH STEWARDSHIP ON FINANCING, FIGURING THAT OUT, AND HELPING HER PACKAGE THE FILM.
SO I'M HERE TO ENDORSE HER, HER BOTH HER PERSONALLY AND PROFESSIONALLY.
AND CERTAINLY IF YOU HAVE QUESTIONS FOR ME LATER, I'M AVAILABLE FOR THAT.
AND YOU HAVE TIME GIVEN TO YOU FROM TRACY SATTERWHITE SATTER, ELVA TREVINO, AND EMILY SHIPE.
SO THIS IS GONNA GIVE YOU 1, 2, 3, 4.
SO YOU'RE JUST GONNA NEED ONE EXTRA MINUTE WITH THAT.
'CAUSE WE CAN ONLY HAVE A MAXIMUM OF THREE RIGHTS, SO WE JUST NEED TO MAKE SURE WE THAT'S RIGHT.
GIVE TWO ADDITIONAL, THAT'S JUST SO WE NEED, YOU'RE ABSOLUTELY CORRECT.
THANK YOU FOR YOUR MATH SKILLS.
NO, I HAD TO COUNT ON MY FINGERS.
UM, SO A MOTION TO PROVIDE HER AN ADDITIONAL TWO MINUTES.
ANY OPPOSED? MOTION CARRIES THAT YOU HAVE.
PLEASE STATE, YOU ALREADY STATED YOUR ADDRESS.
UH, IT IS 8 0 3 TYLER RUN IN SUGARLAND.
UM, SO HONORABLE MAYOR, COUNCIL MEMBERS, THANK YOU SO MUCH FOR YOUR TIME.
AGAIN, MY NAME IS JENNY WALDO.
I'M A HOUSTON BASED PRODUCER, WRITER, DIRECTOR.
UH, I HAVE OVER 25 YEARS OF EXPERIENCE AND FOR THE LAST 10 YEARS I'VE ALSO BEEN TEACHING FILM AT HOUSTON CITY COLLEGE, FORMERLY COMMUNITY COLLEGE.
AND I JUST WANNA THANK, UH, RYAN, ALFRED, MATT, AND EVERYBODY WHO CAME OUT TO SUPPORT THIS PROJECT.
SO WHAT IS EVERYBODY TALKING ABOUT? WHAT IS MUSTANG? MARTHA? UM, FOR THOSE OF YOU WHO ARE, REMEMBER, IT IS A FICTIONALIZED RETELLING.
UH, FOR THOSE OF YOU WHO DON'T KNOW, IT'S 1994 BAYTOWN.
THE FRED HARTMAN BRIDGE IS UNDER CONSTRUCTION NEARBY.
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ROCKETS ARE ON THEIR WAY TO GET THEIR FIRST EVER NBA CHAMPIONSHIP STATEWIDE.THE GOVERNOR IS ANN RICHARDS SEEKING REELECTION RUNNING AGAINST THIS NEWCOMER NAMED GEORGE W. BUSH.
SHE IS STRUGGLING TO KEEP HER AUTO BODY SHOP ALIVE.
SHE'S FACING CHALLENGES THAT MANY SMALL BUSINESS OWNERS CAN RELATE TO.
SHE'S ALSO THE ONLY FEMALE AUTO BODY SHOP OWNER IN THE AREA.
SHE'S A WOMAN IN HER FORTIES WITH A, SHE'S A SINGLE MOTHER OF AN ANGSTY TEENAGE SON.
AND SHE ALSO HAS THIS QUIRKY HABIT OF TAKING OLD JUNK AND TURNING IT INTO COLORFUL FLOWER POTS.
SO SHE TAKES THIS OLD MUSTANG, SHE TURNS IT INTO A HOT PINK FLOWER PLANTER, PUTS IT OUTSIDE HER SHOP AS A LANDMARK, AND SPARKS THIS COMMUNITY-WIDE DEBATE OVER WHETHER IT'S A CAR SHAPED FLOWER PLANTER OR A VIOLATION OF THE NEW JUNK CAR ORDINANCE.
THIS IS KIND OF THE STARTING PREMISE OF MUSTANG MARTHA.
AND IT, THE MOVIE GOES BEYOND THE LEGAL FIGHT AND IT BECOMES A MORE PERSONAL STORY.
MARTHA'S, UH, PERSONAL LIFE FALLS APART.
HER TROUBLED SON ENDS UP VANDALIZING THE MUSTANG, AND THE COMMUNITY RALLIES TOGETHER TO HELP SUPPORT MARTHA, HER SON, EVEN HELPING TO REBUILD THE MUSTANG THAT EVERYBODY'S BEEN FIGHTING OVER.
AND IT'S REALLY A STORY ABOUT COMMUNITY AND NEIGHBORS HELPING NEIGHBORS EVEN IF THEY DISAGREE.
I'VE BEEN RESEARCHING THIS PROJECT SINCE 2018 AND I FELL IN LOVE WITH BAYTOWN.
ITS COLORFUL CHARACTERS, ITS CINEMATIC LANDSCAPE.
AND I PUT THAT ALL TOGETHER IN MY AWARD-WINNING SCRIPT.
THAT IS A FEEL GOOD, RELATABLE STORY WITH BROAD APPEAL AND AUTHENTIC REGIONAL STORYTELLING.
AND SO I'M EXCITED, UH, TO GET YOU THE CITY COUNCIL'S SUPPORT, WHICH IS WHY WE'RE HERE TODAY.
WE'VE BEEN WORKING WITH LOCAL ORGANIZATIONS ALREADY, AND, UH, WE ARE HERE TO, UM, WITH THE INCENTIVES.
THE PROJECT WILL CREATE LOCAL HIRING OPPORTUNITIES, WORKFORCE DEVELOPMENT.
BAYTOWN IS A NEW FILM FRIENDLY DESTINATION, SO WE WILL HELP CREATE THAT WORKFORCE AND THAT PIPELINE.
UM, WE DO HAVE A $2 MILLION BUDGET, WHICH THERE'S AN ECONOMIC IMPACT THAT'S BEEN PROVEN, WHICH IS WHY WE HAVE THESE NEW STATE AND CITY INCENTIVES THAT CAN BE A THREE TO ONE, UH, ECONOMIC IMPACT.
SO THAT WOULD BRING $6 MILLION INVESTED INTO BAYTOWN, BUT WE ARE NOT EXPECTING THOSE, THAT $2 MILLION BUDGET TO COME FROM BAYTOWN.
WE HAVE THE SUPPORT OF SIX FOOT STUDIOS AND OTHER PARTNERS, AND WE ARE SEEKING THE CITY COUNCIL'S OFFICIAL ENDORSEMENT AND HELP IN REACHING OTHER PARTNERS TO SECURE FINANCING AND RESOURCES TO BRING THIS PROJECT TO LIFE.
UH, WE, UH, WANT TO KNOW, I WANT TO TALK TO YOU ALL ABOUT HOW CAN WE BEST IMPACT BAYTOWN IN CREATING THIS NEW WORKFORCE AND ECONOMY.
AND THE CITY COUNCIL A FEW YEARS AGO SUPPORTED A DOCUMENTARY ON THE BRUNSON, UH, THEATER AND MUSTANG.
MARTHA WILL ALSO PROVIDE PROMOTIONAL MATERIAL AND SHINE A POSITIVE LIGHT ON BAYTOWN THAT WILL LIVE LONG AFTER THE FILM PREMIERES.
AND SO WE ARE ASKING FOR A SIMILAR $50,000 CONTRIBUTION.
MUSTANG MARTHA IS A CELEBRATION OF BAYTOWN AND I LOOK FORWARD TO WORKING WITH YOU ALL TOGETHER TO MAKE THIS PROJECT HAPPEN.
IT'S A LOT OF FUN TO MAKE MOVIES
AND SO I THANK YOU FOR YOUR TIME AND I'M HAPPY TO ANSWER ANY QUESTIONS.
SO CITIZEN COMMENT, WHEN WE HAVE CITIZEN COMMENT, WE, IF IT'S NOT ON THE AGENDA, WE'RE NOT ALLOWED TO HAVE INTERACTION OKAY.
BUT I DO THANK YOU FOR YOUR TIME.
EVERYONE HAS TAKEN TIME TO HEAR WHAT YOU'VE SAID AND FROM WHAT I UNDERSTAND, YOU'VE SENT AN EMAIL OUT TO EVERYONE.
SO THE PRESENTATION, UM, THAT, UH, GOES ALONG WITH THIS TALK HAS BEEN EMAILED OUT TO EVERYBODY.
EVERYBODY SHOULD HAVE A DOCUMENT THAT IS KIND OF A ONE SHEET OVER OF OVERVIEW.
AND THEN, UH, LIKE I SAID, I'D LIKE TO TALK TO EVERYBODY AND SET UP MEETINGS ABOUT HOW WE CAN BEST WORK WITH YOUR AREAS OF TOWN.
AND, UH, SO I WILL BE FOLLOWING UP WITH MORE INFORMATION AS WELL.
I THINK THAT IS EVERYONE WHO WAS SIGNED UP TO SPEAK THERE BEING NO ONE ELSE DESIRING TO SPEAK.
THIS WILL CONCLUDE THE CITIZEN COMMENT PORTION OF THE AGENDA.
NOW WE ARE ON TO TWO A DISCUSSIONS.
DISCUSS THE CITY OF BAYTOWN FISCAL YEAR 20 26, 20 27.
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PROPOSED BUDGET.SO MR. REYNOLDS, YOU CAN GO AHEAD AND OPEN IT UP AND THEN WE WILL BRING MS. JUNE STANKY UP.
WE'RE GONNA SPEAK FOR AN HOUR.
MAYOR, DO YOU WANT, YOU'RE JUST 40 MINUTES.
WE'RE GONNA, SO YOU'RE NOT JUST GONNA DO AN INTRODUCTION, STARTING IT.
I'M GONNA SAY HELLO AND START RIGHT INTO THE PRESENTATION.
MS. STAWSKI AND MS. STAWSKI, YOU'RE GOING TO HAVE YOUR FULL THREE MINUTES AND IF YOU DON'T MIND REMINDING US OF YOUR ADDRESS.
I'M AT 46 0 1 DRIFTWOOD DRIVE, BAYTOWN, TEXAS 7 7 5 2 1.
UM, I AM VERY CONCERNED ABOUT THE, UM, BUS BUDGET, NOT EVEN HAVING ITS OWN LINE ITEM.
UM, LAST YEAR IT WAS CUT FROM 400,000 DOWN TO 250,000.
UM, IT'S THE, IT'S GROUPED IN WITH OTHER PROFESSIONAL SERVICES WHOSE, UM, BUDGET WENT FROM 1,160,000 TO 1,260,000.
AND I WOULD JUST LOVE TO SEE THAT EXTRA A HUNDRED THOUSAND DOLLARS THAT WAS PUT IN THERE TO GO TO IMPROVE THE SCHEDULES OF THE BUSES BECAUSE THEY CUT OUT WEEKEND SCHEDULES, THEY CUT OUT THE EARLY MORNING SCHEDULES, THEY CUT OUT MY DISTRICT THREE SCHEDULES, AND I WOULD LOVE TO SEE THAT ALL GO BACK INTO EFFECT.
UM, YOU'VE GOT THE NEW ACTIVITY CENTER COMING IN, WHICH SHOULD HAVE BUS SERVICED GOING TO AND FROM IT.
AND, UH, THE, IT IT IS JUST REALLY IMPORTANT THAT YOU TAKE CARE OF THE UNDERPRIVILEGED HERE IN BAYTOWN AND GIVE THEM A WAY TO GET AROUND.
UM, AND AGAIN, IN THE SAME LINE ITEM, THERE'S UM, STILL $200,000, UH, FOR, UH, PROJECT VECTOR, WHICH WE'VE ALREADY GIVEN 5 MILLION TO HAVE THEM DESIGN PROJECTS THAT WAY.
SO, UM, I JUST THINK THAT THERE'S A LITTLE BIT OF A SLUSH FUND IN THIS 1,260,000 AND I'D LIKE TO SEE IT RE REDIRECTED TO HAVE BETTER BUS SERVICE IN BAYTOWN.
THAT'S ABOUT ALL I GOT TO SAY FOR THAT ONE.
WHAT'S UP MAN? I'M DOING FANTASTIC.
[a. Discuss the City of Baytown Fiscal Year 2026-2027 Proposed Budget.]
AND COUNCIL AND CITIZENS.THANK Y'ALL FEW THAT ARE HERE.
UM, WE'RE GONNA HAVE FUN TODAY.
Y'ALL WANNA TALK ABOUT NUMBERS.
Y'ALL KNOW I LOVE NUMBERS, BUT I'M ACTUALLY NOT GONNA TALK ABOUT NUMBERS.
I'M GONNA JUST GIVE AN INTRODUCTION AND TALK ABOUT OUR FOUNDATIONS FOR SUCCESS.
AND THIS IS GONNA BE THE KICKOFF FOR OUR BUDGET PIECE.
AND, UH, THE TEAM IS GONNA PRESENT FOR APPROXIMATELY 35 TO 40 MINUTES.
UM, GO THROUGH A BUNCH OF DIFFERENT PIECES.
WE MAY GO A LITTLE BIT LONG DEPENDING ON IF THERE'S QUESTIONS, UH, ALONG THE WAY.
BUT OVERALL WE WANT TO OPEN THIS UP, HAVE AN ENGAGING DISCUSSION, AND, UM, REALLY GET FEEDBACK FROM Y'ALL.
AND IF, HOPEFULLY IF THERE ARE PIECES THAT THE CITIZENS WANT TO, UH, TO HEAR ABOUT, WE CAN TALK ABOUT 'EM AT THE NEXT, UH, BUDGET MEETING THAT WE HAVE.
SO WITH THAT IN FRONT OF YOU ON THE SCREEN IS THIS BUDGET IS BUILT OFF, UM, OUR ORGANIZATIONAL PRIORITIES AND OUR CORE VALUES.
AND THEN IN AN EFFORT TO DO THAT, WE HAVE THREE TOOLS THAT WE ARE USING, UH, TO HELP COMMUNICATE WITH THE COUNCIL, COMMUNICATE WITH THE STAFF, AND COMMUNICATE WITH THE CITIZENS.
UH, THAT COMMUNICATION PIECE IS THE IAP TWO SPECTRUM, RIGHT? WE'VE DONE THIS AT OUR RETREAT.
WE'VE TALKED ABOUT IT AT SOME OF THE OTHER WORK SESSIONS.
AND FOR A MAJORITY OF THIS, WE'RE GOING TO INFORM YOU ON WHAT THE BUDGET IS.
AT THE SAME TIME AS WE DIVE INTO, UH, OTHER PIECES OF THIS, WE WANT TO, UM, UM, COLLABORATE WITH YOU AND, AND, AND INVOLVE YOU IN THIS PROCESS AND FIGURE OUT WHAT YOU ARE SEEING THAT YOU LIKE, WHAT YOU DON'T LIKE BECAUSE YOU LIKE THE CITIZENS AND LIKE STAFF ARE PART OF THE THREE LEGGED STOOL.
AND THAT THREE LEGGED STOOL, IT TAKES ALL THREE OF US TO BE BALANCED AND TO BE ABLE TO PUSH A VIABLE BUDGET FOR THE, OR FOR THE COMMUNITY AND FOR US TO BE PROSPEROUS.
AND THEN AS WE GO THROUGH THIS, AS Y'ALL HAVE SEEN THE BUDGET FORMULA NUMEROUS TIMES, UH, UH, THAT BUDGET FORMULA HELPS IDENTIFY DIFFERENT AREAS THAT WILL HAVE POLICY DISCUSSIONS AROUND.
[00:20:01]
I'M GONNA TURN THIS OVER TO, UH, THERESA MCKENZIE AND, UH, LET HER DEEP DIVE INTO THE NUMBERS WITH Y'ALL FOR A LITTLE BIT.UH, GOOD EVENING, MAYOR AND COUNCIL.
UM, AS YOU KNOW, UM, WE ARE HERE TO ANSWER ANY QUESTIONS YOU HAVE ABOUT THE BUDGET.
BUT BEFORE WE DO THAT, I WANNA PROVIDE AN OVERVIEW OF WHAT'S INCLUDED IN THE BUDGET AND ALSO TALK TOUCH BASE ON THE DOCUMENT YOU HAVE BEFORE YOU, BECAUSE THERE HAVE BEEN CHANGES MADE SINCE YOU RECEIVED THE BUDGET, UM, AT THE LAST COUNCIL MEETING.
SO WE WILL START WITH, UH, THE BEGINNING FUND BALANCE.
WE'LL, UH, TALK ABOUT THE PROPERTY TAX RATE.
WE'LL HAVE A SLIGHT DISCUSSION ABOUT RATES AND FEES TRANSFERS.
UM, ALSO OTHER BUDGET CHANGES THAT HAVE BEEN MADE IN SUPPLEMENTALS AND TRANSFERS OUT AND THE ENDING FUND BALANCE.
SO WE'LL START WITH THE, UH, BEGINNING FUND BALANCE, WHICH IS 110 DAYS.
WE PLAN TO SPEND DOWN THAT FUND BALANCE BY $4.6 MILLION, WHICH WILL HAVE US ENDING WITH 92 DAYS OF OPERATING.
THAT IS AT 18 DAY, UH, 18 DAYS OF RESERVE.
UM, AS YOU KNOW, OUR CURRENT PROPERTY TAX RATE IS 0.69803.
UM, RECENTLY YOU RECEIVED AN EMAIL FROM THE CITY MANAGER THAT OUR NO NEW REVENUE RATE CALCULATION, UM, IS 0.68517.
UM, THIS BUDGET WE'RE PROPOSING 0.6 9 8 1 8 0 3 AS YOU KNOW.
BUT THE REASON THE NO NEW REVENUE RATE IS IMPORTANT IS BECAUSE WE ARE REACHING THE THRESHOLD OF WHEN WE WILL NEED TO RENEGOTIATE THE UM, IDA AGREEMENT WITH EXXON.
SO WE NEED TO BE MINDFUL OF THAT.
UM, NEXT, THIS IS, UH, A GRAPH SHOWING OUR TAX RATE.
AND AS YOU CAN SEE THAT, UH, BLUE LINE IS A STEADY DECLINE AS A RESULT OF ADOPTING THE NO NEW REVENUE RATE EACH YEAR.
UM, THE YELLOW LINE, AS YOU'VE SEEN BEFORE, IS THE, UH, REPRESENTS THE IDAS, WHICH ARE RELATIVELY FLAT.
UM, THE LIGHT BLUE LINE REPRESENTS OUR POVERTY TAX RATE, WHICH IS SHOWING A SLIGHT INCREASE.
AND THE, UM, ORANGE LINE OR RED LINE IS, UH, ILLUSTRATED AS OUR SALES TAX, WHICH IS ALSO SHOWING A SLIGHT INCREASE.
UM, NEXT, THIS IS OUR ANNUAL DEBT SERVICE.
UM, THE REASON THIS IS IMPORTANT, THIS GRAPH IS BECAUSE THIS IS A DEBT SERVICE THAT WE PAY WITH OUR AVALOR TAX.
AS YOU CAN SEE, THE TREND FOR THESE DEBT PAYMENTS ARE FALLING OFF.
AND INITIALLY, INITIALLY, THIS IS A GREAT IDEA.
IT'S A GREAT THING BECAUSE WE'LL RECEIVE MORE M AND O REVENUE, RIGHT? BUT WHEN WE NEED TO REISSUE DEBT, IT CAN CAUSE PROBLEMS BECAUSE THAT PORTION OF THAT DEBT SERVICE WILL BE LOST.
AND SO WE WOULD HAVE TO MAKE UP THE FUNDS THAT ARE LOST WHEN WE ISSUE DEBT BECAUSE THAT RATE WILL SHIFT.
AND SO YOU WOULD BE FORCED WITH THREE DIFFICULT DECISIONS, AND THOSE DECISIONS WOULD BE TO ASK STAFF TO GO BACK AND MAKE ADDITIONAL CUTS.
OR YOU WOULD HAVE TO INCREASE THE TAX RATE OR ADOPT A POLICY OF PAY AS YOU GO, WHICH WOULD REQUIRE STAFF TO GO BACK AND PRIOR PRIORITIZE PROJECTS AND FURTHER DEFER, UM, MAINTENANCE AND REPAIRS AND CAPITAL ITEM NEEDS.
AND WITH THAT, I WILL BE PASSING IT ON TO THE CITY MANAGER.
WE'RE TRYING TO HAVE FUN, MAYOR AND COUNSEL.
DO I NEED TO DANCE AGAIN? I KNOW Y'ALL LOVED THAT LAST TIME.
OKAY, WE'RE GONNA BE SERIOUS TODAY.
ALRIGHT, SO, UM, I, THIS GUY
I AM GOING TO, I'M GOING TO BACKTRACK A LITTLE BIT ON, UH, WE'RE STILL TALKING ABOUT THE TAX RATE UNDER THE BUDGET FORMULA, OKAY? BUT I'M GONNA GO THROUGH A FEW SLIDES OF REVENUE AND THEN BREAKING DOWN THE TAX RATE.
AND WHEN YOU LOOK AT THE TAX RATE, ALSO THINK ABOUT THE FUTURE TAX RATE, NOT JUST FY 27, BUT FY 28.
AND THE THING THAT I WANT TO HIGHLIGHT HERE WITH THE REVENUE IS THAT THE MAJORITY OF THE REVENUE THAT COMES IN FOR THE GENERAL FUND, THIS IS FIVE YEARS OF DATA BASED ON THE PROPERTY TAX, UH, RATE AND THE TRANSITION THAT THIS BODY HAS TAKEN TO, TO WORK WITH THE NO NEW REVENUE RATE.
UM, IF YOU LOOK AT THE BUDGET, JUST IF YOU'RE CHECKING ME, 'CAUSE I KNOW YOUR BUDGETS ARE UP ON THE SCREEN RIGHT NOW, YOUR BUDGET SAYS 28 MILLION FOR PROPERTY TAX.
IT'S 27.7 OR ROUGHLY WHAT YOU SEE ON HERE.
AND THEN, UH, WE HAVE A MILLION DOLLARS EVERY YEAR THAT WE COLLECT IN LIKE A DELINQUENT TAX.
OKAY? SO THAT MILLION DOLLARS IS ADDED BACK ON TOP OF THIS.
BUT I DON'T WANT TO CONVOLUTE ALL THAT RIGHT NOW.
THESE ARE THE ACTUAL, THESE ARE THE ACTUAL NUMBERS.
THESE ARE THE AUDITED NUMBERS.
[00:25:01]
OF 26.'CAUSE WE HAVEN'T AUDITED 26 YET THAT HAVE COME BACK FOR WHAT WE BRING IN WITH OUR PROPERTY TAX RATE.
SO OUR PROPERTY TAX RATE SINCE 2020, OR OUR PROPERTY TAX REVENUE SINCE 2023, HAS BEEN 24.3 MILLION, 27.5 MILLION, 27.5 MILLION, 27.5 MILLION, AND 27.7 MILLION.
IT IS, IT IS STALE, LIKE ABSOLUTELY STALE.
THE IDA AND PILOTS, WHICH IS THE BIGGEST REVENUE SOURCE FOR THE CITY, IT HAS INCREASED $3 MILLION OVER THOSE FIVE YEARS BECAUSE BAYTOWN IS STRUCTURAL STRUCTURALLY DIFFERENT WHEN IT COMES TO OUR TAX RATE.
THE NO NEW REVENUE RATE REALLY IMPACTS THE REVENUE THAT COMES IN TO THE CITY OF BAYTOWN.
I KNOW THAT Y'ALL ARE AWARE OF THIS.
WE'VE TALKED ABOUT THIS FOR YEARS NOW.
I I'M SAYING IT AGAIN FOR THE CITIZENS BECAUSE REPETITION IS KEY WHEN WE'RE TALKING ABOUT SOME HARD TOPICS.
OKAY? AS THE IDAS HAVE BEEN GROWING IN VALUE, THAT SAME TAX RATE HAS BEEN DECREASING.
SO IT LOWERS THE AMOUNT OF MONEY THAT'S COMING IN OFF OF THE IDAS AND THE TWO TWELVES.
BUT THE, THE HOMEOWNERS HAVE BEEN PICKING UP THE, THE, THE DIFFERENT BURDEN.
BUT YOU MAY NOT USE, YOU MAY SAY WHY OR HOW DO YOU EXPLAIN THAT WHEN THAT LOOKS ALL, IT LOOKS ALL STAGNANT HERE, AND I'LL GET TO THAT IN JUST A SECOND.
THE SALES TAX, WHAT YOU HAVE IN FRONT OF YOU IS SALES TAX AND FRANCHISE FEES.
IT'S GROWN, RIGHT? I MEAN, IT'S TWO, $3 MILLION MAYBE.
IT, IT'S, IT'S PRETTY STEADY AS WELL.
I WILL TELL YOU THAT WE HAVE SEEN AN INCREASE WITH SALES TAX OVER THE YEARS, BUT WE'VE ALSO SEEN A VERY LARGE DECREASE WITH FRANCHISE FEES.
AS Y'ALL ARE AWARE, THE STATE HAS MADE CHANGES WHERE CABLE FRANCHISE FEES ARE, HAVE DECLINED.
UH, TELEPHONE FRANCHISE FEES HAVE DECLINED.
AND SO THE MONEY THAT COMES IN FROM FRANCHISE FEES HAS GONE FROM $5 MILLION.
I, I THINK TO LIKE $2.7 MILLION.
AND SALES TAX HAS BEEN THE ONLY PIECE THAT HAS CAUGHT UP WITH THAT AND, AND HELPED COVER THAT DELTA.
THE INTERESTING THING ABOUT THAT IS THAT WHEN SEN MARKETPLACE OPENS THIS YEAR, WE'RE ALL HUMANS.
WE ALL SHOP AT THE BRIGHT AND SHINY THAT WILL BE THE BRIGHT AND SHINY.
AND WHEN WE SHOP AT THE BRIGHT AND SHINY AT SANTO MARKETPLACE, THEY HAVE A TAX ABATEMENT AGREEMENT FOR 13 YEARS.
SO ANY MONEY BEING SPENT, SAN JATO MARKETPLACE WILL NOT ADD TO THE SALES TAX HERE.
OKAY? AND I SAY THAT NOT AS A, TO TALK ABOUT WHAT'S HAPPENED IN THE PAST.
I DON'T SAY THAT THAT'S NOT WHAT THAT'S FOR.
IT'S JUST TO GIVE AWARENESS ON WHERE WE ARE GOING WITH THE REVENUE THAT NEEDS TO BE GENERATED, UH, BEYOND THIS YEAR.
AND SO WHEN YOU LOOK AT THE REVENUE, YOU CAN SEE THAT IT IS GROWING.
IT'S GROWN $9 MILLION FROM 2023 TO 2025.
THIS IS, THIS IS ROUGHLY 90% OF ALL THE REVENUE THAT WE, UM, THAT WE BRING IN.
NOW THAT'S $9 MILLION OVER OVER FIVE YEARS.
OUR PERSONNEL COST, AND, AND WE'LL TALK ABOUT THAT IN A LITTLE BIT ABOUT EXPENSES.
REMEMBER NINE YEAR, 9 MILLION OVER 10 YEAR OR FIVE YEARS FROM 23 TO 24, OUR PERSONNEL COST ROSE 5.8 MILLION.
FROM 24 TO 25, IT ROSE 4.6 MILLION.
FROM 25 TO 26, IT ROSE 2.6 MILLION OR 2.7 MILLION.
AND FROM 26 TO 27, IT IS PROJECTED TO GROW FOUR POINT SOMETHING MILLION.
SO THAT ALSO PLAYS INTO SOME OF THE ACTIVITIES THAT WE HAVE A GROUP AND THE DIRECTORS AND, AND, AND Y'ALL HAVE BEEN INVOLVED IN OVER WORKING ON THIS BUDGET OVER THE PAST FEW YEARS.
BUT I GO BACK TO HOW THE CITIZENS, IF I, IF I BRING BACK THIS CHART, HOW THE CITIZENS PICKED UP MORE OF A BURDEN, RIGHT? THEY'RE THAT THEY'RE THAT MIDDLE LINE, THE PURPLE LINE THAT SHADED OUT.
HOW HAVE THEY PICKED UP MORE OF THE BURDEN? WELL, IT COMES DOWN TO DEBT.
WHILE OUR, WHEN YOU LOOK AT THE MAINTENANCE AND OPERATION OF THE CITY, IF YOU REMEMBER 2023, OUR TAX RATE WAS 75 CENTS.
IN 2024, OUR TAX RATE WAS 72 CENTS.
AND 2025, OUR TAX RATE WAS 70 CENTS.
AND THEN WE WENT TO 69 8 0 3 AND WE'RE PROPOSING 6 9 8 0 3.
SO WE'VE SEEN A DECLINE WITH THE TAX RATE.
BUT AS YOU MOVE WITH ALL OF THIS, THE MAINTENANCE AND OPERATION, WHICH WHAT IT TAKES TO RUN THE CITY EACH AND EVERY YEAR HAS AVERAGED TO ROUGHLY 68% OF THE TAX RATE DEBT OVER THE YEARS.
IT HAS FLUCTUATED AND IT'S GONE DOWN
[00:30:01]
ULTIMATELY FROM 23 TO 27 HERE, BUT IT HAS ALSO AVERAGED AT 32% OF THE TAX RATE.THAT'S WHERE THAT DELTA IS STILL COMING IN.
IT'S IMPORTANT FOR Y'ALL TO SEE THAT ANY OF THE EXTRA MONEY THAT'S COMING IN IS COVERING DEBT SERVICE.
IT'S NOT COVERING MAINTENANCE AND OPERATIONS FROM THE PROPERTY TAX PERSPECTIVE.
OKAY? AND SO WHILE THERE IS SOME GROWTH HERE ON THE TOTAL REVENUE, IT'S ROUGHLY $2 MILLION IN PROPERTY TAXES.
SO OVER FIVE YEARS WE'VE GROWN $2 MILLION IN PROPERTY TAX REVENUE.
IT, IT'S, IT'S NOT A SUSTAINABLE FORMULA ON TOP OF THAT, UM, I, I'M, I'M GONNA JUMP BACK AND FORTH OR I'M WILLING TO JUMP BACK AND FORTH BECAUSE I'M GONNA LIKE TALK ABOUT, UH, THE DEBT OR THE, UH, TAX RATE FOR 26 AND 27, BUT ALSO HOW IT PLAYS A FACTOR GOING FORWARD.
OKAY? SO THIS IS THE TAX RATE FOR 2026 THAT'S ADOPTED.
THAT'S CURRENTLY WHAT WE ARE OPERATING IN.
IT TAKES 42 4 6 4 TO RUN THE CITY DAY IN AND DAY OUT IN 2027, IT APPEARS THAT WE HAVE A HIGHER TAX RATE TO RUN THE CITY, BUT YOU SAW THAT THE REVENUE IS STILL REL RELATIVELY THE SAME.
AND IF YOU REMEMBER THE, THE DEBT CHART, IT HAS DROPPED OFF.
IT DOESN'T LOOK LIKE IT HERE, BUT IT HAS DROPPED OFF IN 27.
UM, AND SO THAT BECAUSE IT'S DROPPED OFF, THE DEBT RATE HAS DROPPED DOWN.
OKAY? NOW, THE INTERESTING FACT HERE, WHEN WE START PLANNING FOR THE FUTURE, THE MAINTENANCE AND OPERATION PIECE, WHEN WE, THIS IS WHAT I'M TELLING YOU, I'M JUMPING BACK AND FORTH.
YOU SEE HOW THIS IS 42 4 6 4, THAT'S THE ADOPTED TAX RATE FOR THIS CURRENT YEAR.
WHEN YOU LOOK AT THE VOTER APPROVAL RATE, REMEMBER NO NEW REVENUE RATE IS THE, IS THE NO TAX INCREASE, RIGHT? AND THEN YOU HAVE THE UPPER END OF VOTER APPROVAL RATE, WHICH IS 3.5% THAT THE TAX RATE CAN GROW EACH YEAR BEFORE IT GOES OUT FOR VOTER APPROVAL, RIGHT? THOSE ARE, THOSE ARE OUR LEFT AND RIGHT BOUNDARIES TO WORK IN.
OKAY? SO NO NEW REVENUE IS SUPPOSED TO BE THE LOWER PORTION.
OUR CURRENT TAX RATE, THE STATE'S CALCULATIONS, WE DO NOT CONTROL THOSE.
AND SO THAT SAME 42 4 6 4 THAT YOU SAW BEFORE IS THE 45 57 IN THAT CHART.
WHAT HAPPENS IS THAT THEY SEE THAT MORE VALUE CAME IN AFTER THE CERTIFIED APPRAISAL ROLLS ARE DONE.
AND SO WHEN THEY PUT IN THE CALCULATIONS THAT 4 2, 4 6 4 AUTOMATICALLY TRANSFERRED TO 45 5 7, AND THEN THAT'S WHAT THE ONE, OR THAT'S WHAT THE 3.5% CAN GROW OFF OF.
AND SO IF I DO THE 45 5 7 TIMES 3.5% THAT WE CAN GROW, THAT TAKES MY VOTER APPROVAL RATE TO 41 9 7 6.
OKAY? WHICH IS LOWER THAN THE NO NEW REVENUE RATE OF OUR CURRENT YEAR, RIGHT? IN ADDITION TO THAT, THIS IS WHERE THE DEBT IS VERY IMPORTANT.
WHEN WE GO INTO THE FOLLOWING YEAR, AS THE DEBT ROLLS OFF ON, ON 2028 THAT YOU SEE UP HERE, THIS 15.5 MILLION, THAT 25 9 9 1, IF DEBT IS NOT ISSUED, WILL BRING DOWN THAT 25 9 9 1 TO ROUGHLY 29 9 1, MAYBE 21 9 9 1.
THAT'S A GUESS, THAT'S AN ESTIMATE.
BUT THAT'S A ROUNDABOUT WHERE IT WILL COME IN AT.
WHAT THAT MEANS IS THAT THE VOTER APPROVAL RATE FOR THIS WOULD BE 61 CENTS, MAYBE 62 CENTS.
SO WE WOULD TAKE ALMOST A EIGHT TO 10 CENTS HIT ON THE TAX RATE IF NO DEBT IS ISSUED IN 2028.
THAT'S JUST IMPORTANT WHEN WE'RE LOOKING AT WHAT THE TAX RATE IS ON KEEPING IT STEADY, MODIFYING IT, WORKING WITH IT.
THAT'S JUST, THAT'S WHY IT'S IMPORTANT FOR ALL OF US TO WORK TOGETHER ON WHAT THAT IS.
THIS WILL BE A TOPIC THAT WE COVER IN THE RETREAT THAT WE HAVE AN EXTENSIVE CONVERSATION ON.
IT IS NOT MEANT TO DECIDE TODAY, IT'S JUST AN EDUCATIONAL PIECE FOR Y'ALL AND FOR THE CITIZENS AND, AND FOR THE TEAM AS WE LOOK AT THIS AND WHY IT'S IMPORTANT THAT WE HAVE IN-DEPTH DISCUSSIONS ON HOW DEBT PLAYS A ROLE IN THIS AS WELL.
I WILL PAUSE BEFORE I KINDA MOVE ON, BUT THAT I, AND I'M NOT ADVOCATING TO ISSUE DEBT.
I'M NOT ADVOCATING TO ISSUE DEBT.
I'M JUST SAYING THOSE ARE THE PARAMETERS.
[00:35:02]
COUNSEL, I'M SORRY TO INTERRUPT, BUT IF I MAY, OUR RULES OF PROCEDURE STATE THAT THE CITY ATTORNEY OR ASSISTANT CITY ATTORNEY MUST ATTEND MEETINGS UNLESS EXCUSED AND, UH, MATTERS COME UP THAT NEEDS MY IMMEDIATE ATTENTION, I WOULD ASK TO BE EXCUSED FROM THE WORK SESSION.UH, I WILL BE AVAILABLE IN MY OFFICE IF ANYTHING COMES UP.
I AM HERE, UH, NEARBY IF YOU ALL NEED ME.
MAY I BE EXCUSED FROM THE WORK SESSION TODAY? THAT'S FINE.
DO WE MAKE A MOTION OR NO, SIR? JUST MAKING SURE.
SCOTT, DO YOU WANNA DANCE ON THE WAY OUT? I MEAN, OH, WE SHOULD MAKE 'EM DANCE.
GONNA DO? NO, THEN YOU'RE NOT EXCUSED.
UM, I KI IT'S ALSO INTERESTING, RIGHT? BECAUSE IN THIS SCENARIO THAT YOU SEE RIGHT IN FRONT OF YOU, OUR, OUR ACTUAL VOTER APPROVAL RATE IS 67 9 6 7.
OUR VOTER APPROVAL RATE AS, AS, UH, TERESA SAID IS 68 5 1 7.
THE ONLY REASON THAT WE WERE ABLE TO GO UP TO 74 IS BECAUSE WE'VE BEEN GOOD BOYS AND GIRLS ACCORDING TO THE STATE BY DOING THE NO NEW REVENUE RATE.
AND THEY ALLOW US AN INCREMENT.
AND BECAUSE WE HAVEN'T GONE ABOVE THE, THE NO NEW REVENUE RATE OVER THE PAST, UH, FIVE OR SIX YEARS, WE HAVE AN INCREMENT BUILT IN AND IT GIVES ALMOST, UM, 6 CENTS THAT CAN BE ADDED TO, OR 7 CENTS THAT CAN BE ADDED TO THIS TO TAKE US UP TO 74 CENTS.
THAT'S WHERE THE, THE TECHNICALITY OF WHERE THE VOTER APPROVAL RATE AT 74 CENTS IS.
BUT IF WE DID NOT HAVE THAT INCREMENT, AND I WILL TELL YOU WE WILL NOT HAVE THAT INCREMENT IN THREE YEARS, WE WILL NOT BECAUSE, UH, ONE, THE PROPOSAL IS TO USE ONE SENSE OF THAT INCREMENT, UH, AND THIS GO AROUND.
BUT AS THE DEBT ROLLS OFF TO EVEN KEEP IT UP, TO KEEP IT UP, WE WILL HAVE TO USE THE INCREMENT UNLESS DEBT'S ISSUED.
SO IF DEBT'S NOT ISSUED, THE INCREMENT WILL BE USED WITHIN TWO TO THREE YEARS.
AND THEN YOU WILL, YOU'LL HAVE TO, YOU WILL HAVE A LOW CALCULATION LIKE THIS.
AND RE THE FUNNY PART ABOUT THAT IS THE NO NEW REVENUE RATE IS 68 5 1 7 AND THE VOTER APPROVAL RATE IS 67 9 6 7 ON THIS CALCULATION.
AND SO THAT'S BACKWARDS TO HOW THE STATE WANTS IT BECAUSE THE VOTER APPROVAL RATE SHOULD BE A HIGHER PIECE.
WE BY LAW WOULD HAVE TO, WE WOULD BE LEGALLY OBLIGATED TO GO WITH THE 67 9 6 7 OR THE CITIZENS WOULD, WE WOULD HAVE TO HAVE AN ELECTION ON THE TAX RATE AT THAT POINT.
WE WOULD HAVE TO CHOOSE THE LOWER, WHICH IS THE VOTER APPROVAL RATE, WHICH IS JUST ODD MATHEMATICALLY.
ANY QUESTIONS OR COMMENTS? UM, I HAVE A QUESTION FOR THE SAKE OF, UH, CITIZENS THAT MAY GO BACK AND WATCH THIS LATER.
WHAT ARE THE WAYS WE CAN ISSUE DEBT? UM, WE COULD DO A GENERAL OBLIGATION BOND.
UH, WE CAN DO A, A CERTIFICATE OBLIGATION AND WE HAVE REVENUE BONDS AND A FEW OTHER JUST SMALL PIECES.
BUT THE, THOSE ARE THE MAIN THREE THAT THE, THE CITY WOULD USE.
AND WHAT'S THE DIFFERENCE BETWEEN THE THREE? SO A GENERAL OBLIGATION BOND THAT'S GONNA BE LIKE WE HAD, UM, LAST NOVEMBER WHERE THE CITIZENS GO AND VOTE ON, UH, ITEMS THAT ARE PICKED BY THE CITIZENS AND COUNCIL.
UH, THE CERTIFICATES OF OBLIGATION, THE WAY THAT THEY WOULD BE USED IS THAT THEY WOULD ALSO HAVE PUBLIC NOTICE THAT IT'S HAPPENING AND THEN COUNCIL WOULD VOTE, BUT THEY WOULD NOT GO OUT FOR AN ELECTION.
BUT TYPICALLY FOR THE CITY COUNCIL, THEY HAVE BEEN USED ON STREETS AND DRAINAGE AND FACILITIES.
UM, AND THERE ARE FURTHER RESTRICTIONS BY THE STATE AT THIS POINT WHERE YOU, IT'S ONLY CERTAIN FACILITIES YOU CAN EVEN USE THEM ON, UH, BY AND LARGE WOULD BE STREETS AND DRAINAGE FOR THE CITY.
UM, IF YOU HAVE SOMETHING LIKE, LET'S JUST USE THE, THE UTILITY BILLING, WE HAVE REVENUE THAT COMES IN FROM UTILITY BILLING, WE COULD ISSUE A REVENUE BOND FOR THAT, UH, WATER SEWER, UH, PROJECTS TO SUPPORT IT.
UM, SOMETHING MS. TERESA SAID THAT I WANT TO CLARIFY.
UM, IF WE GO BELOW THE NO NEW REVENUE RATE THAT TRIGGERS A, IF WE GO BELOW 68 CENTS YES, SIR.
THAT TRIGGERS A, IT, IT DOES NOT TRIGGER, IT GIVES THE ABILITY FOR EXXON TO RENEGOTIATE THEIR TERMS, WHICH THEN MOST LIKELY WOULD BECAUSE AT BELOW 68 CENTS, THEY DO NOT GET THE VALUE THAT THEY, UM, THEY START LOSING MONEY, UH, ON THE TAX RATE BECAUSE THEY WOULD BE PAYING MORE.
AND I, AND AND I APPRECIATE YOU CLARIFYING THAT 'CAUSE I WANT TO MAKE TO THIS COUNCIL AND, AND THOSE WATCHING, UM, AWARE THAT, YOU KNOW, WHAT EXXON IS GIVEN FOR, UH, OUR EC IT, IT, IT'S, IT'S TIED TO OUR TAX RATE.
[00:40:01]
THIS ONE AS FAR AS RENEGOTIATING IT, WE WE'RE MARRIED TO THE TAX RATE.IF, UM, IS, IS THERE, IS THERE ANY IDA THAT WE WOULD HAVE TO NEGOTIATE IF WE WENT DOWN YES.
UH, THE CHEVRON NOW, AND I BELIEVE THE LONE STAR ONE THAT WE'RE WORKING ON AT THIS POINT, UH, THE TWO TWELVES.
YEAH, THEY'RE TWO TWELVES INSTEAD OF IDAS, BUT YES, SIR.
AND THE, THE, BUT THERE, I, I DO WANNA CLARIFY.
IT'S A LITTLE NUANCE AND I I UNDERSTAND WHY YOU'RE SAYING IT.
I'M NOT TRYING TO DEBATE WHY YOU'RE SAYING IT.
I'M TRYING TO GIVE A LITTLE NUANCE OF THE TWO 12, UM, IS BUILT AS A LONG TERM STRATEGY FOR THE CITY TO ENSURE THAT WE HAVE THOSE LARGE ENTITIES INVESTING HERE FOR LONGER PERIODS OF TIME.
AND, UM, IF, IF I GO BACK TO THE OTHER CHART OF WHAT'S ALL, WHAT'S ALL IS PAID TO THE CITY RIGHT NOW THAT HAS SECURED A LONG-TERM FUTURE FOR, UH, 20 PLUS MILLION DOLLARS FOR EXXON FOR THE NEXT 35 YEARS.
AND THAT WAS THE STRATEGIC DECISION FOR BOTH PARTIES SO THAT WE KNEW WE HAD A STEADY INCOME STREAM BECAUSE THE, THE STATE IS LOOKING TO TAKE AWAY THE ETJ AND IF THE STATE TOOK AWAY THE ETJ, ALL OF THOSE WENT AWAY.
AND THAT WAS THE STRATEGIC DECISION WITH THE TWO 12, UH, TRANSITIONS.
IT'S JUST THAT, IT'S, IT'S, IT'S A LITTLE NUANCE, BUT I'M NOT TRYING TO DEBATE WHAT, WHAT YOU'RE TRYING TO PUT OUT THERE.
BUT TO ANSWER YOUR QUESTION, YES.
AND I, THIS IS SOMETHING THAT I, I WANT TO CLARIFY FOR THE CITIZENS OUT THERE IS, YOU KNOW, YOU KNOW, IT IS NOT A GIFT FROM EXXON.
YOU KNOW, THESE IDAS, UM, ARE TIED TO OUR TAX RATE.
SO THE DECISIONS WE MAKE, THE, THE MONEY WE GET IN FOR, YOU KNOW, AN
SO IT'S SOMETHING I WANTED TO, TO CLARIFY TO MAKE YES, SIR.
ABUNDANTLY CLEAR FOR THOSE MOVING FORWARD.
THANK YOU FOR CLARIFYING THAT.
ARE IDAS ALSO TIED TO JOBS AND THE, THE DEPENDABILITY OF A COMPANY STAYING HERE IN OUR COMMUNITY? UH, OUR INTENT WHEN STAFF IS NEGOTIATING THESE TO PRESENT 'EM TO COUNSEL IS FOR THAT PURPOSE.
AND, YOU KNOW, TO CLARIFY THAT MEANS, YOU KNOW, WE'VE, UH, WORKED WITH THEM TO HAVE SO MANY JOBS HERE AND, UH, YOU KNOW, EMPLOYEES THAT ARE FULL-TIME VERSUS JUST PART-TIME AND STUFF.
SO ALL OF THAT IS INCLUDED IN THE IDAS TWO TWELVES, WHICHEVER ONES WE NEED RIGHT.
TO WORK ON JUST FOR THE CITIZENS, BECAUSE I KNOW THAT Y'ALL HEAR IT AND, UM, YOU'LL HEAR IT A LOT AND WE'VE TALKED ABOUT IT, UH, QUITE A BIT.
THE, THE IDAS ARE IMPORTANT FOR BAYTOWN BECAUSE WHEN THEY'RE NEGOTIATED FOR LONG-TERM STABILITY OF THESE, UH, INDUSTRY PEOPLE OR INDUSTRY PARTNERS AND THE JOBS THAT COME WITH THEM, AND THEN THE, UM, SUPPORTING ELEMENTS THAT COME WITH THEM WHEN THEY'RE PUT ON THE GROUND, UM, WE DON'T OFFER THEM ANYTHING AT ALL.
AND SO CITIZENS PAY A TAX, RIGHT? A PROPERTY TAX AND THEY GET WATER OR THEY GET, UH, STREETS, THEY GET, UH, POLICE, THEY GET FIRE, THEY GET THE UNDERGROUND INFRASTRUCTURE FOR DRAINAGE.
THEY, THEY GET THESE AMENITIES THAT, UM, THAT ARE COME WITH THE PROPERTY TAX.
WE DON'T OFFER ANY OF THAT TO ANY OF THESE.
THEY PAY 66 CENTS OF, OR 66% OF THE TAX RATE TO BE A GOOD PARTNER.
THEY DON'T GET ANYTHING FROM US.
WE DON'T SEND POLICE AND FIRE THERE.
WE DON'T SEND ANYTHING TO HELP WITH DRAINAGE ON THEIR PROPERTY.
WE DON'T SEND ANYTHING TO HELP THEM WITH THE CITY SERVICES THAT WE HAVE.
IT'S, IT'S, IT'S, IT'S A PARTNERSHIP WITH THE CITY SO THAT WE HAVE LONG-TERM, UH, STABILITY WITH OUR FINANCES AND SAYING, HEY, WE'RE NOT GONNA BE PART OF THE CITY AND, UM, WE AREN'T GONNA BOTHER YOU, BUT HERE'S 66% OF THE TAX RATE THAT WE OWE.
ANYONE ELSE COMMENT PART PART OF THAT CALCULATION IS, IS 66% OF THE TAX RATE, BUT IT'S ALSO IN A NEGOTIATED VALUE.
SO THAT'S SET VALUE AS FAR AS CITIZENS SOMETIMES MISS THE FACT THAT, OKAY, OUR, OUR TAX RATE MAY GO DOWN, BUT MY PROPERTY VALUE GOES UP, SO I'M PAYING THE SAME AMOUNT EVERY YEAR.
SO THAT'S, THAT'S WHAT I'VE HEARD ON A NUMBER OF OCCASIONS.
AND, AND WHAT I'VE TRIED TO REALLY MAKE FOLKS UNDERSTAND THAT WHEN WE LOWER THE TAX RATE, WE'RE, WE'RE THE TIPPING POINT WITH THE TAX RATE.
[00:45:01]
WE LOWER THE RATE INDUSTRY PLAYS 66% OF THAT, BUT THEIR VALUE DOES NOT INCREASE 'CAUSE IT'S A ALREADY NEGOTIATED VALUE.SO THEY GET A SIGNIFICANT BENEFIT WHERE OUR CITIZENS, THE RATE GOES DOWN, BUT THE VALUE GOES UP.
SO THEY GOTTA UNDERSTAND THAT THAT'S WHY, YOU KNOW, I HAD TO COMMENT THAT, YOU KNOW, I PROMOTE, KEEP THE TAX RATE LEVEL OR EVEN BUMP IT A LITTLE BIT BECAUSE THE ONES THAT ARE REALLY GETTING THE BIGGEST BENEFIT OF A REDUCED TAX RATE IS OUR INDUSTRY.
AND I'M NOT ANTI-INDUSTRY BY ANY MEANS, BUT THEY GET THE ABILITY TO NEGOTIATE THAT VALUE WHERE OUR CITIZENS DON'T.
SO OUR CITIZENS, AGAIN, THEY MAKE UP THE DIFFERENCE.
AND, AND THAT'S NOT FAIR TO THE AVERAGE PROPERTY AVERAGE RESIDENTIAL PROPERTY OWNER THAT, YOU KNOW, SO THAT'S, THAT'S BEEN MY POSITION FOR THE LAST COUPLE YEARS, IS WE NEED TO HOLD THE TAX RATE STEADY.
SO ENTRY CONTINUES TO PAY MM-HMM
THE SIGNIFICANT PORTION OF THE VALUE BECAUSE AGAIN, THE RATE GOES DOWN, THEIR, THEIR VALUE STAYS THE SAME, SO THEY ACTUALLY PAY LESS WHERE OUR CITIZENS ARE PAYING EQUAL OR MORE.
'CAUSE THE VALUE GOES UP AND MM-HMM
WHEN LOOKING AT OUR BUDGET, THAT'S SO COMPLICATED FOR OUR COMMUNITY, YOU KNOW, I THINK WE'RE BLESSED THAT WE EVEN HAVE THE ABILITY TO NEGOTIATE THE IDAS AND THE TWO TWELVES BECAUSE THERE'S A LOT OF COMMUNITIES IN OUR AREA THAT, THAT DON'T HAVE THAT THEY'RE, THEY'RE NOT FOUNDED IN AN AREA THAT STARTED WITH THESE BIG INDUSTRIES AND THAT HAVE DECIDED THROUGH NEGOTIATIONS TO STAY HERE.
BUT ONE OF THE THINGS THAT I THINK IS MISSING FOR THE CITIZENS WHEN WE DO THIS, UM, Y'ALL DO A GREAT JOB AS STAFF PUTTING OUT ALL THE NUMBERS AND YOU KNOW, WE, WE HAVE THE BENEFIT OF, OF PUTTING IN A LOT OF SERVICE HOURS AND, AND DIVING DEEP INTO THIS ALMOST LIKE A, A MATH CLASS, BUT SOMETIMES I THINK IT JUST NEEDS TO BE VERY BLACK AND WHITE T CHART STYLE.
UM, IF THE TAX RATE'S HERE, THIS IS WHAT THE CITIZENS WILL GET.
YOU KNOW, YOU USED TO USE GLOWS AND GROWS, RIGHT? THIS IS THE PRO FOR YOU.
IF WE STAY AT NO NEW REVENUE AS A CITIZEN, AS A HOMEOWNER, THIS IS, THIS IS, THIS IS THE NEGATIVE, THE CON, THIS IS THE PRO AND THE CON.
AND THEN IF WE GO UP A PENNY OR ANOTHER ONE, SO THESE NUMBERS ARE GREAT AND WE HAVE A GRASP OF THAT.
AND I'M NOT SAYING THAT CITIZENS DON'T, BUT SOMETIMES THEY JUST, THEY, THEY NEED TO SEE WHAT IS THE IMPACT TO MY POCKETBOOK.
SO, OKAY, WE LOWER THE TAX RATE, WE CAN RENEGOTIATE IDAS, I'M THROWING HYPOTHETICALS OUT THERE, YOU RENEGOTIATE THAT.
AND THEN WE FIND OUT THAT AN INDUSTRY CAN, YOU KNOW, PAY LESS MONEY TO THE TAX RATE.
POSSIBLY MOVE ON DOWN I 10 BECAUSE WE'VE SEEN THAT HAPPEN ABOUT AN HOUR TO TWO HOURS AWAY.
THEY'RE NOT EATING LUNCH HERE, THEY'RE NOT GOING TO THE URGENT CARES HERE.
WE ALREADY HAVE A PROBLEM WITH SOME PEOPLE WHO WORK HERE AND AREN'T LIVING HERE.
SO FOR ME, I WISH SOME OF THE SLIDES FOR THE CITIZENS WOULD JUST BE, IF WE KEEP THE NO NEW REVENUE, HERE'S WHAT HAPPENS.
HERE'S WHAT HAPPENS AT BAD IN YOUR POCKETBOOK.
IF WE GO UP A PENNY, GOOD, BAD, AND JUST KEEP IT LIKE THAT.
AND IF THEY WANNA DIVE IN, LIKE SOME PEOPLE DO INTO THE BUDGET BOOK AND, AND LOOK AT IT, THEN THEY CAN, BECAUSE AT THE END OF THE DAY, YOU KNOW, THIS IS MY, MY FOURTH TIME TO GET UP HERE AND DISCUSS THIS IN DETAIL.
BUT AT THE END OF THE DAY, I THINK ALL WE ARE REALLY LOOKING FOR IS WHAT IS GOOD.
NOT ONLY, YOU KNOW, TODAY, BUT ALSO TOMORROW AND NEXT YEAR AND THE NEXT YEAR FOR THE CITIZENS' POCKETBOOK.
BECAUSE, BECAUSE WE ALL DO LIVE HERE AND IT IMPACTS US AND OUR FAMILY.
WELL, ONE ADDITIONAL COMMENT, I'LL TAHOE AND MY COLLEAGUE OVER THE LAST COUPLE YEARS, WE'VE LOST THE SUBSIDIES BECAUSE WE'VE REDUCED THE TAX RATE, THEREFORE OUR REVENUE WENT DOWN, THE INDUSTRIAL REVENUE WENT DOWN.
AND SO WE ADJUSTED THE BUDGETS BY ELIMINATING SUBSIDIES.
SO AGAIN, BY LOWERING THE TAX RATE, EVERYBODY'S HAPPY ABOUT THAT, BUT THEY ACTUALLY, THE AVERAGE CITIZEN LOST MORE MONEY BECAUSE WE REDUCED THE SUBSIDIES OR ELIMINATED MOST OF THEM.
RIGHT? SO, SO WE, AND AGAIN, IT'S HARD TO EXPLAIN THAT IS IN THE BUDGET, BUT THAT'S THE EFFECT THAT, OKAY, WE LOWERED YOUR TAX RATE.
SO YOU SAVE, AND I'M JUST USING CRAZY NUMBERS, YOU SAVE $40 A YEAR IN YOUR TAXES, BUT WE ELIMINATED $20 A MONTH IN SUBSIDIES.
SO YOU ACTUALLY ARE SPENDING $200 MORE MM-HMM
BECAUSE THE SUBSIDIES ARE GONE.
SO IT WOULD'VE BEEN BETTER TO HOLD THE TAX RATE A LITTLE HIGHER OR STEADY.
YEAH, IT'S GONNA COST ME AN EXTRA 40 BUCKS A YEAR, BUT I'M GAINING 200 IN SUBSIDIES.
THAT'S WHAT WE NEED TO START FOCUSING ON.
AS MY COLLEAGUE POINTED OUT, WE NEED TO START LOOKING AT, IT MAY LOOK BAD, IT MAY SOUND BAD, BUT HERE'S THE REAL MATH ON A DAY-TO-DAY INDIVIDUAL BASIS THAT IT'S ACTUALLY BETTER TO DO IT THIS WAY THAN TO JUST SIMPLY
[00:50:01]
LOWER THE TAX RATE.'CAUSE, BECAUSE AGAIN, INDUSTRY'S THE ONE THAT'S GETTING THE BIGGEST CUT, IF YOU WILL.
UM, AND AGAIN, I'M NOT
I THINK WE HAVE GREAT INDUSTRY HERE, UM, BUT THEY, THEY'RE THE ONES GETTING THE BIGGEST BENEFIT OF THE TAX RATE REDUCTION.
SO WITH THAT, MAYOR, I APPRECIATE IT.
WHEN YOU TALK ABOUT HEADLINES, UM, YOU KNOW, IT, IT, IT'S ALWAYS GOOD POLITICIAN IF YOU VOTE, IT WAS LIKE CITY OF BAYTOWN LOWERED TAXES, BUT RIGHT UNDER THAT.
BUT NOW NEXT YEAR YOU'RE GONNA SPEND 200 EXTRA DOLLARS ON BLAH, BLAH, BLAH, BLAH, BLAH.
NOBODY WANTS TO BE INVOLVED OR VOTE.
AND, YOU KNOW, I'M USING, I'M EXAGGERATING.
HYPOTHETICALS, YOU KNOW, UM, COUNCIL VOTED TO GO, NO NEW REVENUE OR COUNCIL VOTED TO UP THE TAX RATE, BUT WE'RE SAVING YOU MONEY WITH BLAH, BLAH, BLAH, BLAH, BLAH.
WE DON'T GET TO CONTROL THOSE HEADLINES.
BUT IT'S IMPORTANT THAT THE CITIZENS UNDERSTAND WHAT THE TRUE IMPACT IS IN THEIR, IN THEIR POCKET.
CAN YOU SPEAK TO SOME OF THE SUBSIDIES THAT WE, UM, THAT WERE NOT, UH, YEAH.
THE BIGGEST, THAT, THAT ARE NO LONGER THERE? YES, SIR.
UM, ONE I DO WANNA HIGHLIGHT ONE THAT IS NOT TALKED ABOUT ANYMORE, BUT THE HOMESTEAD EXEMPTION FOR SENIORS THAT Y'ALL WORKED VERY HARD MM-HMM
UH, TO THE POINT WHERE FOR THE AVERAGE HOMEOWNER, UH, THE AVERAGE SENIOR WITH THE AVERAGE HOME HOMEOWNER VALUE, IT'S BASICALLY TAX FREE FROM THE CITY'S PERSPECTIVE.
UH, AND THAT WAS INTENTIONAL FROM Y'ALL'S POINT OF VIEW.
THAT IS A VERY LARGE SUBSIDY, UH, FOR THE SENIORS IN THE, IN THE CITY.
UH, BUT WE WERE HELPING, UH, WITH THE WATER BILLS, WE WERE HELPING WITH, UH, TRASH COLLECTION.
UM, I WOULD TELL YOU THAT BRANCH PICKUP IS A SUBSIDY THAT'S STILL THERE, UM, THAT IS NOT OFFERED, UH, THROUGH MOST CITIES, UH, AROUND THE AREA.
THOSE ARE THE ONLY ONES I CAN THINK OF RIGHT NOW, BUT YEAH, BUT I, I, WE TALKED ABOUT THOSE ARE THE BIGGEST ONES.
THE WATER AND TRASH ARE THE BIGGEST.
AND THAT'S WHY I ASKED BECAUSE I WAS HOPING YOU WOULD SAY WATER AND TRASH, BUT THAT'S GOING BACK TO WHAT COUNCIL MEMBER GRAHAM SAID.
UM, THESE, THESE ARE THINGS THAT ARE NOT TALKED ABOUT.
UM, IT'S MY OPINION THAT WE CAN CONTROL THE NARRATIVE BY PUTTING THIS INFORMATION OUT THERE.
WE'VE DONE SOME GOOD THINGS HERE, UM, SINCE LAURA AND I WERE ELECTED BACK IN 2016.
NOT TO SAY OTHER COUNCILS WEREN'T, BUT THAT'S ACTUALLY WHEN IT STARTED.
AND YOU CAN SEE HOW OUR TAX RATE HAS GONE DOWN, BUT WE WERE ALWAYS BEING TOLD BY SOME STAFF MEMBERS, WHERE YOU GOING TO STOP BECAUSE YOU'RE GONNA HAVE TO START CUTTING SOME THINGS.
AND THAT'S NOT A MESSAGE THAT WE WERE PUTTING OUT THERE TO THE INDIVIDUALS.
I LIKE WHAT YOU SAID, YOU HAVE A HUB, UH, UM, HEADLINE, BUT WE'RE NOT READING SUBTITLES OR LOOKING AT FOOTNOTES.
UM, AND PIGGYBACKING OFF OF WHAT YOU SAID, IT REMINDS ME OF GIVING MY KIDS MEDICINE.
IT MAY SMELL BAD, IT MAY TASTE BAD, BUT IN THE END, WHAT'S IT GONNA DO? IT'S GONNA MAKE YOU BETTER AND IT'S GONNA MAKE YOU FEEL GOOD.
UM, SO MAYBE THERE'S SOME OPPORTUNITIES WHERE I CAN SEE SOME OPPORTUNITIES WHERE WE CAN GET AHEAD OF THIS NOW AND START INFORMING OUR CITIZENS THROUGH THE WAY.
HOWEVER, PUBLIC AFFAIRS SAYS WE, UM, ARE THE MOST EFFECTIVE WAYS OF REACHING THEM AND LETTING, LETTING THEM KNOW THESE THINGS.
I THINK THE WATER BILL THAT AFFECTS EVERYONE TRASH IS GOING TO AFFECT EVERYONE.
AND IF WE CAN START PUTTING SOME OF THESE THINGS OUT, I LIKE YOUR IDEA OF SAYING PROS AND CONS AT EACH RATE.
WHAT DO YOU WANT US TO DO? KEEP IT SIMPLE.
UM, IF WE CAN DO THAT, I THINK, I THINK THAT WOULD BE A GREAT THING.
ONE OF THE OTHER SUBSIDIES WE LOST WAS, UM, PAYING CREDIT CARD FEES.
WE DO HAVE THE CHECK ONE THOUGH.
IT'S FREELY CHECKS IT'S FREE OR CASH.
I'M GONNA TURN IT BACK OVER TO THERESA, BUT WHILE SHE COMES UP, I WILL TRY TO TALK TO A REPORTER, UH, FOR THOSE HEADLINES.
UH, I WOULD LIKE TO REFER BACK, UH, TO THE ENDING FUND BALANCE OF 92 DAYS.
I JUST WANNA HIGHLIGHT OR TALK ABOUT THE CHANGE IN THE FUND.
BALANCE WAS DUE TO SEVERAL FACTORS, ONE OF THEM BEING THE PROPERTY TAX CALCULATION.
WE ADJUSTED THE REVENUE FROM 30 MILLION TO 28 MILLION BASED ON THE ESTIMATED VALUES, UH, IN THE CALCULATION.
AND DUE TO THIS CHANGE, WE DECIDED TO TAKE ANOTHER LOOK OR REVIEW AT THE FY 26 ESTIMATED AND 27 PROPOSED REVENUES.
UM, AND AS A RESULT, WE MADE SOME, UH, REDUCTIONS IN THAT AREA.
THE ORIGINAL DATA THAT WE PULLED
[00:55:01]
WAS BASED ON MARCH DATA, WHICH WAS MID MID-YEAR.SO WE PULLED DATA UP UNTIL JULY, WHICH CREATED A NET EFFECT OF 3.5 MILLION REDUCTION IN FY 26 ESTIMATES AND 496,000 FOR FY 27.
UM, THE NEXT, UH, WE HAVE FEE CHANGES.
THIS IS A REMINDER THAT WE HAVE FEE CHANGES COMING UP.
UH, PLANNING DEVELOPMENT WILL BE IN EFFECT, UH, JANUARY 1ST.
AS YOU KNOW, HEALTH WAS APPROVED THIS YEAR IN FY 20, IN APRIL OF 26.
WE WON'T SEE THE FULL, UH, IMPACT OF THOSE, UH, CHANGES UNTIL NEXT YEAR.
THIS IS JUST A REMINDER THAT THAT'S COMING UP.
UM, WE HAVE MOVED 3.48 MILLION FROM AN AUTO TRUST AND AGENCY FUND.
IT WAS AN OLD FUND THAT HAD BEEN SET UP PREVIOUSLY IN PRIOR YEARS.
UM, WE TRANSFERRED, UH, AND IT WAS FOR, UM, EMERGENCY SERVICE REGARDING CEDAR PORT NAVIGATION.
UM, SO WE DECIDED BASED ON, UH, THE FACT THAT IT WAS FOR EMERGENCY SERVICES, THAT IT WAS TO FUND FIRE OPERATIONS.
SO WE MOVED IT TO GENERAL FUND.
UM, THAT ANNUAL AMOUNT IS ABOUT 1.4 MILLION, UH, EACH YEAR.
UM, WE ARE ALSO TRANSFERRING GOING FORWARD.
BEFORE I MOVE ON, GOING FORWARD, WE ARE GONNA DEPOSIT THOSE FUNDS INTO GENERAL FUND.
UM, THERE IS A WATER TRANSFER FROM WATER AND SEWER, MDD, TURS B AND HOT.
AND ALL OF THOSE REPRESENT, UH, COSTS FOR, UH, ADMINISTRATION SERVICES.
UM, WE ARE GONNA TOUCH BRIEFLY ON POLICIES WE BROUGHT TO YOU IN THE LAST YEAR, UH, PERSONNEL AND CHANGES IN THE GENERAL FUND BUDGET.
UM, OVER THE LAST YEAR, WE'VE BEEN REALLY BUSY PRESENTING POLICIES TO YOU THAT HAVE BEEN IMPLEMENTED.
AS YOU CAN SEE, THIS IS AN EXHAUSTIVE LIST.
UM, AND THEY WILL HAVE POTENTIAL, UH, FINANCIAL IMPACTS THAT WE WILL BE MONITORING IN THE NEXT YEAR.
UM, IN ADDITION, WE HAVE OTHER POLICIES THAT WE PLAN TO BRING TO YOU.
UM, JUST TO NAME A FEW WOULD BE THE DATA CENTERS, GAS STATION, UH, CITY DEPARTMENT FEES, DETENTION, RETENTION PONDS, UM, THINGS OF THOSE NATURE.
UM, NEXT, DURING THE BUDGET PROCESS, THE DEPARTMENTS REQUESTED 29 GENERAL FUND POSITIONS.
UM, AT A DIRECTOR'S RETREAT, THE DIRECTOR'S MET TO PRIORITIZE, UH, POSITIONS, TALK ABOUT ORGANIZATIONAL NEEDS AND OPERATIONAL IMPACTS.
UM, AS A RESULT, WE HAVE ONE RECOMMENDED GENERAL FUND, UH, POSITION IN THIS BUDGET.
WHAT, WHAT POSITION IS THAT? UM, THAT POSITION IS THE E-BUSINESS SPECIALIST POSITION FOR IT.
THE INTENT MAYOR AND COUNCIL WITH THE POSITION IS THAT THE CITY USES A LOT OF SOFTWARE AS PART OF OUR, UH, GROWING EFFORT TO CREATE AS MUCH EFFICIENCY IN THE ORGANIZATION.
THE BUSINESS SPECIALISTS WOULD LOOK AT THE SOFTWARE THAT'S USED BY THE CITY AND FIND WHERE WAYS WHERE WE CAN, UM, AGGREGATE SOME OF THE SOFTWARE SYSTEMS, UH, OR STOP USING SOME OF THE SYSTEMS AND BETTER CONTROL THE COSTS THAT ARE WITH THE OVERWHELMING AMOUNT OF SYSTEMS THAT YOU HAVE.
IF YOU GO TO YOUR BUDGET BOOK, UM, IN THE ITS DEPARTMENT, YOU WILL SEE TWO PAGES OF SOFTWARE SYSTEMS THAT ARE UTILIZED BY THE CITY.
THEY LOOK AT ANY NEW, THE COST OF NEW SOFTWARE THAT MAY BE NEEDED.
IT THE CITY, HMM, I DIDN'T HEAR YOU.
CAN THEY LOOK AT THE COST ALSO FOR ADDING NEW SOFTWARE THAT THE CITY? CORRECT.
BECAUSE I, I CAN NAME ONE, WHICH WE'VE TALKED ABOUT A LOT, WHICH IS UPGRADING OUR MICROSOFT.
YOU HAVE THE HARD COPY THAT WAS PRESENTED TO YOU LAST MONTH.
UH, THAT WE HAVEN'T CHANGED IT.
WE JUST PUT 'EM ON THE SCREEN FOR YOU.
I NOT HERE, HAVEN'T GOTTEN THAT'S FAIR.
UH, YOU CAN DEFINITELY GET ONE.
WE'LL GET AFTER WE, AFTER WE ADOPT IT, MR. LESTER, WE'LL GET YOU A COPY.
SO TRY THAT WAS, I WANT, AFTER YOU VOTE FOR, YOU HAVE TO VOTE FOR IT FIRST BEFORE YOU CAN SEE IT.
THAT WAS A COORDINATED EFFORT.
'CAUSE I KNOW LIKE WE HAD, YOU KNOW, YOU HAD A LOT OF ISSUES TRYING TO INTEGRATE JUST TO GO TO THE A CH TOOK LIKE ALMOST A MONTH BECAUSE OF THE SOFTWARE ISSUES, BECAUSE THERE'RE JUST ONE SOFTWARE.
DIDN'T SPEAK TO ANOTHER SOFTWARE, WHICH DIDN'T SPEAK TO THIS SOFTWARE.
AND IT WAS JUST, WE'RE TRYING TO MAKE IT EASY FOR THE MM-HMM
AND, AND SO THIS, THAT IS SOMETHING THAT WE WANNA, CAN HELP OUT AND GET PROCESSES DONE QUICKER.
UM, OTHER, UH, BUDGET ADJUSTMENTS WORTH MENTIONING IS WE HAD A SHIFT OF CITYWIDE AND MULTI-DEPARTMENTAL
[01:00:01]
CONTRACTS.WE MOVED THEM FROM THE FINANCE DEPARTMENT TO THE GENERAL FUND OVERHEAD DIVISION.
UM, AND THOSE REPRESENTED ITEMS LIKE LAWN MAINTENANCE, JANITORIAL UNIFORMS, THINGS THAT ARE CITYWIDE, AND IT EQUATES TO, UH, 694,000.
SO THAT IS NOW IN GENERAL FUND OVERHEAD.
IN ADDITION, UH, IF YOU RECALL COUNSEL GAVE DIRECTION, UH, REGARDING THE HOMELESS INTERVENTION PROGRAM THAT YOU WANTED, THAT SEPARATED OUT WHERE WE COULD TRACK THOSE COSTS.
SO WE MOVE THAT $580,000 INTO GENERAL FUND OVERHEAD WHERE WE CAN DO A BETTER JOB OF, UH, MONITORING THAT AND REPORTING THINGS OUT TO YOU.
UM, WE ALSO ADDED A DEMOLITION, UH, INTO THE GENERAL FUND OVERHEAD BUDGET.
WE INCREASED IT FROM 50,000 TO 250, JUST SO YOU KNOW.
AND THEN THE LAST ONE, MAJOR ADJUSTMENT IS JUST TO SHIFT IN THE IT BUDGET FROM CAPITAL OUTLAY TO COMPUTER MAINTENANCE, UM, FOR THEIR ANNUAL SOFTWARE CONTRACTS.
UM, THAT AMOUNT IS AROUND 2 MILLION.
WHEN YOU LOOK AT THEIR BUDGET, YOU WILL SEE A NEGATIVE IN CAPITAL OUTLAY AND YOU WILL SEE A POSITIVE IN MAINTENANCE.
AND THAT'S WHERE THAT $2 MILLION CHANGE IS FROM.
I WANTED TO GO BACK TO THE DEMOLITION FROM THE 50,000 TO THE 250,000 MM-HMM
UM, WHAT WAS THE THOUGHT PROCESS BEHIND THAT? WAS IT BECAUSE OF GO AHEAD.
UH, GOOD EVENING MAYOR COUNCIL.
AS, AS YOU REMEMBER IN THE PAST, THE DEMOLITION BUDGET WAS MUCH, MUCH HIGHER.
400,000 PLUS REDUCING IT, UM, WAS A TACTIC TO KEEP OUR COSTS LOW.
WHAT WE FOUND IS THE NEED HAS NOT GONE AWAY.
UH, I DID A TOUR, IN FACT THE OTHER DAY OF, UH, SUBSTANDARD BUILDINGS.
UH, THE LIST WE HAVE RIGHT NOW FOR WAITING TO BE DEMOED ORDERED IS ABOUT 10 PROPERTIES.
UH, THREE ARE COMMERCIAL, SEVEN ARE RESIDENTIAL.
AND THE ESTIMATED COST, AGAIN, IT'S ESTIMATED IS AROUND 250.
SO Y'ALL LOOKED AT THE NEED AND DECIDED WE NEEDED TO GO BACK.
UNFORTUNATELY, THE NEED HAS GOT NOT GONE AWAY.
WE'VE CONTINUED TO GO TO PUT PROPERTIES THROUGH THE SUBSTANDARD PROCESS.
WITH THE HOPES THAT OWNERS WOULD ABATE THEMSELVES, THAT WOULD TAKE CARE OF THEMSELVES.
BUT THAT IS NOT HAPPENING IN A LOT OF DISTRICTS.
UH, AND THE NEED IS PRETTY GREAT.
SO I GOT A QUICK QUESTION ON THAT.
HOW MANY COMPANIES ARE WE EMPLOYING TO DO THE ABATEMENT? WE, WE DO A CONTRACT FOR ONE COMPANY TO DO THAT, BUT COMMERCIAL HAVE TO BE BID EVERY SINGLE TIME BECAUSE A LOT OF TIMES THERE'S ISSUES LIKE ASBESTOS AND STUFF MM-HMM
SO THE, UH, COMMERCIALS GET BID OUT EVERY SINGLE TIME.
SO IT COULD BE DIFFERENT COMPANIES COULD BE THE SAME COMPANY.
SO, SO IS MOST OF THAT BACKLOG RESIDENTIAL? SEVEN OF THE 10 ARE RESIDENTIAL, THREE ARE COMMERCIAL.
COULD WE JUST BRING IN A FEW MORE COMPANIES TO GO AHEAD AND GET THAT DONE? IF IT'S GONNA BE AROUND THE SAME PRICE? UH, I, I DON'T WANNA SPEAK TO HOW THEY RUN THE RFP PROCESS AND BID IT OUT, BUT IT, IT HAS TO BE BID OUT.
SO A LOT OF TIMES IT'S MORE EFFICIENT TO DO ONE BID THAN TO BID THEM OUT SEPARATELY.
AND YOU MIGHT GET BETTER PRICING IF YOU USE AN AGGREGATE, BUT I'M NOT AN EXPERT ON THE COST PART.
I I'M JUST ASKING, SORRY, GO AHEAD.
I'M ASKING IF WE, IF WE, WHEN WE BID IT OUT, IF WE COULD CHOOSE THREE, IF THEY WILL, IF THEY CAN AGREE AT THE SAME PRICE AND GO AHEAD AND GET THAT BACKLOG OUT.
'CAUSE THAT'S GONNA HELP BEAUTIFY OUR CITY, ABATING SOME OF THESE PROPERTIES.
I'LL TAKE THAT BACK TO PLANNING AND TO PROCUREMENT AND THEY CAN FIGURE OUT THE MOST EFFICIENT WAY TO DO IT.
UM, I REMEMBER, UM, WHEN I WAS AT CDAC, THE, UM, WHOEVER GOT THE CONTRACT TO DO IT DID IT AT A DISCOUNT BECAUSE THEY DID LIKE A NUMBER, I THINK IN BULK, BULK.
I DON'T REMEMBER IT WAS FIVE OR 10, UM, TO QUALIFY IT FOR GETTING A REDUCED RATE ON THE DEMOLITION MM-HMM
SO THAT COULD BE A FACTOR AS WELL.
NOW, IF WE CAN GET THREE TO DO BULK, DEPENDING ON HOW MANY WE HAVE, AND DO IT THE SAME RATE, THEN THAT WOULD BE GREAT.
I'LL DIRECT MARTIN TO TALK TO PROCUREMENT TO SEE WHAT THE BEST DEAL IS.
UM, AND I KNOW WE'VE BEEN DOING THIS FOR A LONG TIME AND DOING THE DEMOLITIONS ON THESE, ON THESE, UM, PROPERTIES, HAVE WE EVER BEEN ABLE TO RECAPTURE OR, UH, LIENS OR, OR, YOU KNOW, THE, THE COST THAT WE'VE, WE'VE DONE TO, TO DO THIS ON THESE PROPERTIES.
I KNOW SOME OF THEM END UP FALLING INTO A LONG-TERM LIEN AND WE END UP SELLING THE PROPERTY AFTER A CERTAIN AMOUNT OF TIME, BUT HAVE WE EVER BEEN ABLE TO RECAPTURE WITHOUT HAVING TO SELL? THERE MAY BE INSTANCES WHERE IT'S BEEN RECAPTURED, BUT OVERALL THE TREND IS THE LIENS ARE NOT RECAPTURED AT THAT TIME.
A LOT OF TIMES THEY GO TO FORECLOSURE OR TAX ABATEMENT, AND THAT'S, THAT'S FIRST ON THE LIST.
[01:05:01]
THANK YOU.UH, NEXT I WANNA GET, WE HAVE TRANSFERS, TRANSFERS OUT OF 8.1 MILLION.
UM, A PORTION OF THAT, THE GREATEST PORTION IS OUR, UH, TRANSFER TO CAPITAL REPLACEMENT.
THESE ARE SUPPLEMENTALS THAT WERE, UH, APPROVED IN THE BUDGET, WHICH IS 4.3 MILLION.
WE'RE ALSO TRANSFERRING A MILLION TO THE MEDICAL, UH, BENEFITS FUND.
WE'RE TRYING TO REPAY THAT FUND BACK FOR THE TRANSFER THAT THEY MADE TO THE GENERAL FUND OF 3 MILLION IN THE PREVIOUS YEARS.
UM, WE ALSO HAVE TRANSFERS TO OUR INTERNAL SERVICE FUNDS, FLEET AND WAREHOUSE, AND THEN TWO OF OUR, UM, SPECIAL FUNDS SPECIAL REVENUE FUND.
UM, IN REGARDS TO OUR SUPPLEMENTALS, WE HAD 30, UH, SUPPLEMENTAL REQUESTS IN THE GENERAL FUND.
UH, 74% OF WHICH WERE FOR DEFERRED MAINTENANCE OR REPAIR PAYERS, OR ITEMS THAT NEEDED TO BE REPLACED.
UM, THAT EQUATES TO 3.6 MILLION.
THE OTHER NEW ITEMS THAT WERE REQUESTED EQUATES TO 1.3 MILLION, WHICH WERE, UH, 14 ITEMS. ANOTHER BREAKDOWN OF OUR SUPPLEMENTALS THAT ARE BEING, UH, RECOMMENDED FOR APPROVAL REPRESENTS FOR 1.4 MILLION FOR PUBLIC SAFETY AND HOMELESS INTERVENTION, UH, POLICE VEHICLES.
WE ARE, UH, FUNDING 500,000 FIRE, 346,000 IN THE HOMELESS INTERVENTION, AS I MENTIONED PREVIOUSLY, IS 580,000.
UM, THE REMAINING 3.5 IS TO SUPPORT OTHER CITY OPERATIONS.
THIS IS THE, UH, END OF THE GENERAL FUND PORTION.
WE ALSO HAVE THE, UM, GENERAL FUND SUMMARY THAT YOU CAN SEE WHERE IT'S CHANGED FROM A HUNDRED, FROM 94 DAYS FROM WHEN YOU RECEIVED IT LAST TO 92 DAYS, AND THE CHANGES IN THE REVENUE THAT YOU ALSO HAVE IN YOUR MEMO.
SO MAYOR AND COUNSEL, JUST WE'RE TAKING A QUICK PAUSE, UM, TO LOOK AT THE ACTUAL, THIS IS THE FORMULA IN ACTION.
AND YOU CAN SEE, UM, FROM 25 TO 27, AND WE TALKED ABOUT THIS AT THE LAST, UH, WORK SESSION, THE TRANSFER ENDS WERE IMPORTANT AND WE WANTED TO HIGHLIGHT.
AND SO IF YOU SEE RIGHT HERE, UH, ON JUST ABOVE THE TOTAL REVENUE LINE, IF WE TOOK AWAY THE 7 MILLION THAT WE TRANSFERRED IN IN 2025, THE TOTAL REVENUE WOULD BE 141 MILLION IN 2026.
IF WE TOOK THE 3 MILLION THAT WAS TRANSFERRED IN, UM, THE TOTAL REVENUE WOULD BE, UH, 1 42.
AND IN 2027, IF WE TOOK AWAY THE SIX OR THE, UH, UH, 4 MILLION THAT WAS TRANSFERRED IN, UH, FOR 27, OUR REVENUE WOULD BE AT 1 45.
SO THE IMPORTANT THING HERE IS THAT THE REVENUE WOULD STILL COVER OPERATIONS, UH, TOTAL OPERATIONS, BUT AS YOU GET TO 2027, TOTAL REVENUE IS GONNA BE 1 45 AND OPERATING EXPENSES ARE GONNA BE 1 44 9.
AND, UH, DO WE DO A HECK OF A JOB COMING IN BELOW ON WHAT WE BUDGET? YES.
AND I APPLAUD THE TEAM FOR THAT.
THAT IS WHAT'S BEEN ABLE TO HELP US, UH, BUILD THAT RESERVE UP TO THE 90 DAYS, UH, TOWARD COUNCIL'S TARGET.
BUT IT'S JUST, IT'S IMPERATIVE TO SHOW HOW ALL THE FORMULA WORKING TOGETHER, AS WE'VE TALKED ABOUT OVER THE YEARS, IT'S A MATH PROBLEM.
AND WE'RE STARTING TO NARROW THAT MARGIN QUITE A BIT AT THIS POINT.
AND THE ONLY WAY THAT WE HAVE BEEN ABLE TO STAY AFLOAT IS TO TRANSFER INS FROM OTHER FUNDS.
OKAY? THERE ARE NO OTHER FUNDS TO TRANSFER IN GOING INTO NEXT YEAR.
AND, UM, SO COME NEXT YEAR, IT WILL BE COMPLETELY BASED OFF THE REVENUE THAT IS BROUGHT IN FROM PROPERTY TAXES, IDAS, AND SALES TAX, PLUS THESE, THESE FEES THAT COME IN THERE, THERE ARE LEGITIMATELY ZERO FUNDS TO TRANSFER IN FROM NEXT YEAR.
UM, SO THAT WILL BE THE COME TO JESUS CONVERSATION THAT ALL OF US HAVE TO HAVE.
AND, UM, FOR US, IF YOU REMEMBER, THE PERSONNEL SERVICES HAVE GROWN OVER THE YEARS.
I TOLD YOU 25 TO 26 WAS ONLY 2 MILLION, BUT WE'RE HAVING A $4 MILLION JUMP FROM 26 TO 27, AND THE BUILT IN CONTRACTS FOR 28 IS GONNA BE FOUR AND A HALF MILLION.
AND SO WE, WE KNOW THAT WE'RE GONNA HAVE TO FIND FOUR AND A HALF MILLION FOR THE, FOR, FOR 2028 ALREADY.
AND WHAT THAT MEANS FOR ALL OF US THROUGH HERE, WHY IT'S IMPERATIVE THAT WE GO AHEAD
[01:10:01]
AND SPEND DOWN THE RESERVE FROM 110 TO 92 FOR THE SERVICE OR FOR THE, UH, CAPITAL REPLACEMENT PIECES, IS BECAUSE WE ALREADY KNOW THAT GOING INTO 2028 AS IT STANDS RIGHT NOW, DOESN'T FOR UNLESS COUNSEL MAKE CHANGES IN THE FUTURE, IT'S GONNA BE A FLAT BUDGET FOR 2028 JUST TO, TO KEEP THINGS GOING.AND IF IT'S GONNA BE A FLAT BUDGET FOR 2028, UH, ALONG WITH OTHER CONSIDERATIONS, LET'S GO AHEAD AND REPLACE, UH, PROVIDE THE RESOURCES FOR OUR EMPLOYEES THAT THEY NEED TO DO THEIR JOB EFFECTIVELY.
WE'VE ALREADY BEEN VERY LEAN OVER THE PAST FEW YEARS WHILE WE'VE BEEN MAKING CHANGES, AND SO WE HAVE NOT ADDRESSED THE MAINTENANCE ITEMS. THAT'S WHY THERESA HIGHLIGHTED THAT OF THE 30 REQUEST, 74% ARE DEFERRED MAINTENANCE ITEMS THAT HAVE JUST BEEN PUSHED AND PUSHED AND PUSHED MM-HMM
AND SO IT'S, IT'S IMPERATIVE THAT WE, UH, GET THOSE THINGS REPLACED RIGHT NOW, UH, AND WORKING WITH CCPD AND FIRE CONTROL AND THEIR BUDGETS, AND THEY'RE BUILDING THEIR PIECES THAT CAN FURTHER SUPPORT THEIR, THEIR, UH, UH, VEHICLE REPLACEMENTS AS THEY GO FORWARD.
AND SO ALL OF US ARE WORKING IN TANDEM TO TRY TO GET THAT, BUT THIS IS JUST THE CONSOLIDATION OF THAT BUDGET FORMULA IN ACTION.
WITH THAT, WE'RE GONNA PAUSE FOR ANY AND ALL QUESTIONS THAT YOU HAVE FOR THE GENERAL FUND WHEN IT COMES TO PERSONNEL SERVICES.
YOU MENTIONED CONTRACTS A COUPLE OF TIMES.
WHAT CONTRACTS, FOR THE SAKE OF, WE HAVE TWO EMPLOYEE GROUPS THAT ARE, UH, UNDER CONTRACT, MAYOR MM-HMM
UM, THE POLICE, UH, THE POLICE AND FIRE REPUBLIC SAFETY ELEMENTS.
SO WHAT ARE YOU SAYING WHEN YOU SAY PERSONNEL SERVICES? JUST ELABORATE ON THAT A LITTLE BIT.
UM, SO, UH, BOTH THE POLICE ASSOCIATION AND THE FIRE UNION NEGOTIATE WITH ADMINISTRATION AND THE CITY COUNCIL, UH, FOR CONTRACTS EVERY THREE TO FIVE YEARS.
UH, RIGHT NOW WE ARE VERY FORTUNATE TO HAVE A VERY GOOD RELATIONSHIP WITH BOTH, WITH BOTH PARTIES.
AND WE ROUGHLY NEGOTIATE THREE TO FIVE YEAR TERMS, UH, FOR BOTH PARTIES, BOTH POLICE ASSOCIATION AND THE FIRE UNION.
UM, WE HAVE, UM, THREE YEARS BUILT IN FOR, UH, COST OF LIVING INCREASES FOR THEIR SALARIES.
THAT WAS 4% THE FIRST YEAR, 4.25% THE NEXT YEAR, AND 4.5% THE THIRD YEAR.
UM, AND WITH THAT, THAT BECOMES THE STREAMLINE, UH, WHERE ALL OF US WORK TOGETHER.
WHAT THEY'RE ADVOCATING FOR IS THEN PASSED DOWN FOR THE REST OF THE EMPLOYEES BY AND LARGE, UH, WHEN IT COMES TO, UM, PARITY ON SALARY.
AND THAT COST OF LIVING IS PASSED DOWN TO THE REST OF THE EMPLOYEES.
SO THAT BUILDS IN BASICALLY A COST OF LIVING INCREASE FOR ALL THE EMPLOYEES.
AND THAT'S WHERE WE KNOW WHAT THE COSTS ARE GONNA BE ON THE PERSONNEL COSTS, UH, GROWING OF THE SALARIES.
I JUST, I'M GONNA MAKE A COMMENT ON THE, THE RESERVE OR THE OPERATING RESERVES OR WHATEVER.
YOU KNOW, A FEW YEARS AGO WE WERE ENDING 120, 140 DAYS AT THE END OF THE YEAR WITH TARGET OF 90, AND I PUSHED STAFF PRETTY HARD TO STOP THAT.
AND THAT WAS SOME OF THE, THE TAX REDUCTIONS THAT WE BUILT IN TO LURE THAT.
AND, AND I JUST WANT TO COMMEND STAFF THAT OVER THE LAST TWO OR THREE YEARS, WE'VE STILL BEEN COMING IN ABOVE WHAT WE'VE PROJECTED OR WHAT WE SET THE STANDARD AT.
BUT, YOU KNOW, COMING IN AT 110 DAYS WHEN WE'RE, WHEN WE'RE TARGETING 90, IS A LOT BETTER THAN COMING IN AT 145 DAYS WHEN WE TARGET 90.
SO, BUT THAT SAID, AS JAY JUST SAID,
AND SO WE HAVE TO BE CONSCIOUS OF THAT, THAT, AGAIN, WE'VE REACHED THAT TIPPING POINT WITH OUR BUDGETS, OUR TAX RATE, OUR BUDGETS, OUR DAYS OF RESERVE.
AT THE END OF THE YEAR, WE'VE TIGHTENED UP, WHICH WHAT THE CITIZENS SAID THEY WANTED US TO DO, STAFF HAS DONE THAT.
WE'VE GIVEN THEM THE, THE POLICY GUIDANCE TO MAKE SURE IT HAPPENS.
WE'RE THERE, BUT NOW THE BELT'S TIGHT, SO WE CAN'T JUST RELAX NOW.
NOW THE TOUGH DECISIONS START GETTING MADE.
'CAUSE YOU AND I HAD A LOT OF CONVERSATIONS ABOUT THAT, BUT I KNOW ONE OF THE TIMES THAT WE HAD A LOT OF, UM, UH, DAYS, UH, WERE AROUND COVID MM-HMM
AND, YOU KNOW, WE DIDN'T, WE DIDN'T UTILIZE WHAT WE INITIALLY THOUGHT, WHICH LANDED US IN EXTRA DAYS.
SO A LOT OF PEOPLE FELT LIKE, YOU KNOW, WE HAVE ALL THIS MONEY.
AND IT WAS REALLY JUST SOMETHING THAT WE DIDN'T AN WELL, WE ANTICIPATED TO USE THAT MUCH, AND THEN WE DIDN'T.
AND SO IT, IT WAS NO, NO FAULT OF OUR FINANCE TEAM OR, OR ANYONE ON THERE.
THAT'S JUST THE WAY IT WORKED OUT.
UM, SO, UH, THAT'S JUST ONE EXAMPLE.
[01:15:01]
KNOW, AS FAR AS THE OTHERS, I THINK WE'RE ON THE RIGHT TRACK.AND, YOU KNOW, 92 FOR ME STILL FEELS A LITTLE, YOU KNOW, TIGHT.
BUT I, I THINK IT'S BETTER THAN WHAT WE COULD BE.
SO, MAYOR AND COUNSEL, IF YOU DON'T MIND, I WILL POINT OUT ONE MORE THING.
UH, THERESA DID MENTION IT IN THE FORMULA AND THE MAINTENANCE LINE ITEM.
DO YOU SEE THE 26, UH, BUDGET GO FROM 7 MILLION TO 9.9 MILLION? AND YOU MAY BE LIKE, WHY IN THE WORLD DID YOU INCREASE 2.8 MILLION? THAT WAS THE ITS TRANSFER.
THAT WAS TYPICALLY BELOW THE LINE DOWN HERE IN THE CAPITAL OUTLET, UH, CAPITAL OUTLAY.
UM, THE AUDITORS, UH, FORCED US TO PUT THAT UP HERE IN, IN A ABOVE THE LINE EXPENSE.
AND SO THEORETICALLY THAT 2.9 MILLION SHOULD GO ACROSS THE BOARD HERE.
SO IF, IF YOU'RE LOOKING AT IT, UH, APPLES TO APPLES.
AND SO, UM, ONE OTHER THING THAT I WOULD LIKE TO HIGHLIGHT IS YOU SEE THAT WE BUDGETED TO SPEND 20 MILLION, WE'RE PROJECTED TO SPEND ROUGHLY 16.6 MILLION.
UM, THAT'S WHERE THOSE EXTRA DAYS COME IN, UH, FOR THE BUDGET.
UH, ONE THING I WOULD LIKE TO HIGHLIGHT IS WE'RE GETTING SUED LESS.
UM, SO THAT'S A MILLION DOLLARS THAT'S NOT BEING SPENT.
SO, UM, SCOTT'S HAPPY ABOUT THAT.
I'M SURE Y'ALL ARE HAPPY ABOUT THAT.
AND, UM, AND SO THAT'S WHERE SOME OF THESE THINGS COME INTO PLAY.
BUT IN THE PAST, THIS IS WHERE THE COUNCIL MADE A DECISION TO LOOK AT WHERE WE CAN SAVE MONEY.
BECAUSE MR. LESTER, TO YOUR POINT, THIS IS WHAT COUNCIL NOTICED IN THE PAST, THAT WE'D ALWAYS HAVE THE GAP IN THE SERVICES, UH, FROM THE BUDGET TO THE ACTUAL, AND THERE WOULD ALWAYS BE A VERY BIG DELTA.
AND SO FROM COUNCIL'S POINT OF VIEW AND, AND TO SPEAK TO THE CITIZENS, THIS WAS PART OF THE REQUEST OF WHERE CAN WE SAVE MONEY? BECAUSE WHY IS THERE SUCH A LARGE DELTA EACH TIME? YES, MA'AM.
SO I HAVE A QUESTION ON THE, THE CONTRACT SPENDING.
UM, OUT OF THE GENERAL FUND BUDGET AND, UM, WE HAVE SOME RED LINED ITEMS. SO ARE THOSE, ARE THOSE JUST PENDING OR BECAUSE THERE'S NO DOLLARS ATTACHED TO IT? WE'RE GONNA SPEAK TO THAT ACTUALLY IN A SECOND.
THAT'S UNDER, IT'S GONNA COME UP HERE AND TALK TO YOU ABOUT CONTRACTS.
I'M ASSUMING IT'S, IT, IS IT TS YEAH.
I THINK, AND ONE OF OUR CITIZENS WILL BE VERY HAPPY TO HEAR WHAT WE'RE DOING WITH THAT, SO.
ALRIGHT, MAYOR COUNSEL, I'M GONNA TURN THIS BACK OVER, UH, TO THERESA.
SHE'S GONNA GO THROUGH THE WATER SEWER FUND WITH Y'ALL.
WE HAVE OUR WATER AND SEWER FUND BEGINNING BALANCE AT 103 DAYS.
UM, WE ARE GONNA TALK ABOUT, UH, ANY RATE CHANGES, AS YOU KNOW, UM, WITH THE WATER AND SEWER, UH, WE DON'T HAVE ANY TRANSFERS IN.
AND WE'LL TOUCH, UH, PERSONNEL AND MENTION SOME OF THE TRANSFERS OUT.
AND THEN THE ENDING FUND BALANCE AT 107 DAYS.
SO, AS YOU KNOW, UM, THE FEE CHANGES THAT WE HAVE PROPOSED IN THE BUDGET FOR WATER SEW WILL BE EFFECTIVE OCTOBER ONE.
UM, THE RATE, UH, CHANGE IS BASED ON THE, UH, RATE STUDY THAT WAS CONDUCTED WITH OUR CONSULTANT, UH, WHICH IS THE SAME FROM THE PRIOR YEAR, IS A COMBINED RATE, UH, INCREASE OF 7.9%.
UH, 4.5 IS WATER AND 12.4 IS, UH, SEWER.
AND WE WILL BE BRINGING THIS TO YOU, UH, DURING THE BUDGET PROCESS BEFORE YOU ADOPT A BUDGET.
UM, THIS IS AN EXAMPLE OF A RESIDENCE BILL AT 5,000 GALLONS.
UM, THE DIFFERENCE BETWEEN THE CURRENT AND PROPOSED RATE IS JUST UNDER $9 A MONTH.
AND SO WE'RE JUST SHOWING THIS AS AN EXAMPLE BECAUSE WE KIND OF WALKED THROUGH THIS WHEN WE, UM, PRESENTED THE RATE STUDY OR RATE INCREASE TO YOU AT THE WORK SESSION.
UM, AS FAR AS PERSONNEL, UM, THERE WERE THREE POSITIONS REQUESTED IN WATER AND SEWER DURING THE BUDGET PROCESS.
AND WE'RE RECOMMENDING ALL THREE FOR APPROVAL, UH, AT MIDYEAR.
SO THAT ALLOWS THE NEW PUBLIC WORKS DIRECTOR TIME TO REALLY, REALLY FURTHER EVALUATE THE, UH, DEPARTMENT NEEDS.
UM, AS FAR AS TRANSFERS OUT, WE'RE TRANSFERRING 20 POINT, UM, 7 MILLION OUT, 16 MILLION OF THAT IS FOR OUR ANNUAL DEBT SERVICE PAYMENTS FOR WATER AND SEWER.
UM, WE HAVE A 3 MILLION TRANSFER FOR WATER AND SEWER, CIP AND THEN THERE'S A MILLION, AS WE MENTIONED PREVIOUSLY IN THE GENERAL FUND, THE MILLION DOLLARS THAT WE'RE TRANSFERRING INTO GENERAL FUND FOR ADMINISTRATIVE COSTS.
AND THEN THE OTHER TWO TRANSFERS ARE FOR OUR INTERNAL SERVICE FUND.
UM, AS FAR AS SUPPLEMENTALS, WE HAD 26 UH, REQUESTS DURING THE BUDGET PROCESS AND 62% OF THOSE WERE FOR DEFERRED MAINTENANCE REPAIRS
[01:20:01]
OR REPLACEMENTS.UM, THE FULL TOTAL IS $2.6 MILLION OF WHICH 1.6 IS THE DEFERRED MAINTENANCE PORTION, AND THEN A MILLION FOR THE NEW INITIATIVES AND FOR WATER SEWER.
AND WE DID YOU GET THE SUMMARY? WE ALSO HAVE THE SUMMARY CHANGE HERE, UM, FOR YOUR REVIEW MM-HMM
WILL ANY OF THE THREE REQUESTED POSITIONS UNDER WATER, SEWER BE UTILIZED ALSO TO DO ALL THE CHANGE OUTS OF THE NEW, UM, METERS? OR HAVE THEY ALREADY ALL BEEN CHANGED OUT? NO, FOR THE NU METERS, WE, UM, ARE USING RESCO OKAY.
TO CONTRACT INSTALL OUR METERS FOR US, JUST CONTRACTED OUT.
WHEN IS THAT GONNA START? UM, THEY'RE STARTING ACTUALLY THIS MONTH.
ANYONE ELSE? I JUST HAVE A COMMENT AND WE'RE GONNA CHANGE OUT ALL OF RESIDENTIAL METERS.
UM, I'M GOING TO ASK THAT EVERY TIME.
IN THE PAST IT'S LIKE, YEAH, WE GOT 'EM ALL EXCEPT SO WE'RE GONNA GET 'EM ALL.
SO, MR. LESTER, YOU WEREN'T HERE.
I I DON'T KNOW IF YOU WERE HERE, WERE YOU HERE WHEN WE TALKED ABOUT THE STICKER SHOCK ONCE WE CHANGED OUT? SO UNFORTUNATELY I MISSED TWO COUNCIL SESSIONS.
YEAH, I, I KNOW YOU ARE OFF IN YOUR BAYTOWN HOLLYWOOD
AND SO THERE MAY BE SOME INITIAL, UM, STICKER SHOCK, BUT THAT ALSO MAY TELL FOLKS THAT, HEY, YOU HAVE A LEAK.
UM, AND WE HAVE A LOT OF FOLKS RIGHT NOW UNDER THE PLIP PROGRAM THAT ARE CHOOSING TO PAY A FEE RATHER THAN CHANGE OUT.
SO I AM ASSUMING THOSE ARE GONNA HAVE THE HIGH BILLS AND HOPEFULLY INSTEAD OF JUST PAYING THE $25 EXTRA AMOUNT, THEY'LL ACTUALLY GET THEIR, THEIR LINES FIXED.
SO, YEAH, I'M WAITING TO SEE FROM ONE OF THEM.
SO IF THERE'S NO QUESTIONS ON THE WATER AND SEWER, I'M GONNA PASS IT TO, UM, THE DIRECTOR OF PUBLIC WORKS TO TALK ABOUT THE CFP.
AND REMEMBER, MAYOR AND COUNSEL, THIS IS HER FIRST TIME PRESENTING THE BUDGET, SO PLEASE BE AS HARD AS YOU CAN ON HER, WHAT SHE'S DOING,
WELL, THAT'S WHY YOU, THAT'S WHY YOU HIRED ME, JEFF.
TELL US WHAT I'M TALKING ABOUT.
SO, UH, I, GOOD EVENING EVERYBODY.
IT'S TRULY, TRULY MY HONOR TO BE HERE TONIGHT TO JOIN THE TEAM, TO BE PART OF THIS AND TO GET TO TALK ABOUT CAPITAL IMPROVEMENTS, WHICH IS SOMETHING THAT I AM ACTUALLY VERY EXCITED ABOUT.
UM, WE HAVE HAD TWO BRIEFINGS, UH, SINCE I STARTED WITH, UH, CIP, UM, FINANCE COMMITTEE AND ALSO, UH, I BELIEVE WITH THE FINANCE COMMITTEE.
AND SO, UH, WHAT WE'RE PRESENTING TONIGHT IS A LITTLE BIT MORE HIGH LEVEL THAN WE WENT THROUGH WITH THOSE TWO, UH, SUBCOMMITTEES.
UH, BUT WE DEFINITELY WANTED TO WALK THROUGH THIS WITH YOU, UH, LAY OUT WHAT THE CAPITAL IMPROVEMENT PLAN IS AND, AND REALLY TALK ABOUT WHAT IT IS.
UH, REAL QUICK GONNA OVERVIEW.
WE'RE GONNA WALK THROUGH THE CIP CATEGORIES, THAT WE DIVIDE THE CIP INTO OUR CAPITAL INVESTMENTS.
UH, WE'RE GONNA GIVE YOU A QUICK STATUS ON OUR ONGOING PROJECTS.
WE'RE GONNA TALK ABOUT OUR FY 27 RECOMMENDED PROJECTS, OUR PROPOSED PROJECTS, OUR FY 27 IDENTIFIED FUNDING NEEDS.
AND THEN, UH, FINISH UP WITH WHAT IS SHOWN IN FY 28 TO 31, WHICH WE ARE NOT ASKING FOR FUNDING FOR THAT FOR THIS YEAR.
SO IF WE JUMP INTO THIS, UM, WHAT ARE OUR CAPITAL IMPROVEMENT, UH, CATEGORIES? AND A LITTLE BIT OF THIS IS FOR THE PUBLIC AS MUCH I KNOW THAT YOU KNOW WHAT THEY ARE.
UH, BUT WHEN WE TALK ABOUT THIS, WHAT ARE THEY? THEY'RE OUR FACILITIES.
THEY'RE THOSE BUILDINGS THAT OUR STAFF WORK IN ON A DAILY BASIS.
THOSE BUILDINGS AND THOSE FACILITIES THAT WELCOME OUR PUBLIC, UH, TO ACCESS CITY SERVICES, WHETHER IT'S CITY HALL, UH, WHETHER IT'S SOME OF OUR COMMUNITY CENTERS, THOSE ARE THE FACILITIES THAT ARE IN THE CAPITAL IMPROVEMENT PLAN.
OUR FIRE STATIONS, OUR PUBLIC SAFETY CENTER, UH, THINGS OF THAT NATURE.
OUR PARKS AND RECREATION, UH, THOSE AREAS WHERE WE WELCOME OUR, OUR COMMUNITY TO GET AND CONNECT WITH THE OUTDOORS, UH, THAT SUPPORT OUR ORGANIZED INDIVIDUAL AND EVEN COMPETITIVE SPORTS.
UH, AS WE DO ALL THAT TRANSPORTATION, THAT SKELETON, THAT FRAMEWORK THAT ALLOWS MOBILITY AROUND BAYTOWN, THAT'S INTERCONNECTED WITH THAT REGIONAL TRANSPORTATION, UH, THAT SUPPORTS ALL THOSE THINGS.
AND NOT JUST IN VEHICLES AND BUSES.
IT IS ACTUALLY ON BIKES, ON FEET AND ON, UH, TWO AND, UH, UH, FEWER WHEELS.
UH, WHENEVER WE'RE GETTING AROUND ON THAT.
[01:25:01]
UH, DRAINAGE IS ACTUALLY MY TECHNICAL SPECIALTY FROM MY CIVIL ENGINEERING DEGREE.UH, BAYTOWN IS, IS, IS A INTERESTING CHALLENGE.
IT IS VERY, VERY LOW IN ELEVATION, VERY FLAT AND TALLY INFLUENCED.
AND ALL THOSE WORK AGAINST OUR DRAINAGE SYSTEMS, UH, BEING, UM, YOU KNOW, CHALLENGING WITH THE INTENSE RAINFALL EVENTS THAT WE GET.
AND THEN WE MOVE INTO THE, THAT INFRASTRUCTURE THAT IS HIDDEN, THAT'S UNSEEN UNTHOUGHT OF UNTIL IT DOESN'T WORK.
OUR WASTEWATER SYSTEMS AND OUR WATER SYSTEMS, MOST EVERYTHING IS UNDER THE GROUND EXCEPT THE TREATMENT PLANTS.
BUT THE PIPES AND THE LIFT STATIONS, UH, AND THE, THE TREATMENT FACILITIES THAT SERVICE US ON A DAILY BASIS, MAKE SURE THAT YOU DON'T HAVE TO THINK ABOUT IT, YOU JUST TURN ON THE FAUCET AND IT WORKS.
BUT ALL OF THOSE ARE, ARE VERY IMPORTANT INVESTMENTS THAT WE MAKE, UH, TO MAKE SURE THAT THE FOUNDATION OF BAYTOWN AND FOR BAY TOWNIANS SERVES WHAT THEY NEED.
AND JAY LEFT, BUT HE TOLD ME I HAD 35 TO 40 MINUTES INSTEAD OF THE WHOLE, YOU KNOW, 35 TO 40 THAT WE'RE SUPPOSED TO DO.
UH, SO, UM, OUR ONGOING PROJECTS, AND I'VE GIVEN YOU THREE DIFFERENT, UH, ATTACHMENTS THAT ARE AT YOUR TABLE.
AND THEY ARE LINE ITEM BY LINE ITEM, THE INDIVIDUAL PROJECTS.
ATTACHMENT ONE GOES THROUGH, UH, THE PROJECTS THAT ARE CURRENTLY FUNDED THAT ARE IN PROCESS OF DEVELOPMENT, UM, LISTED AS ATTACHMENT ONE THERE FOR YOU.
AND IT, IT INCLUDES 36 PROJECTS THAT ARE IN WHAT WE CONSIDER ACTIVE STATUS.
THEY'RE EITHER IN, IN ACTIVE DESIGN, THEY'RE CURRENTLY BIDDING FOR CONSTRUCTION, OR THEY'RE IN ACTIVE CONSTRUCTION AND MOVING TOWARDS CLOSEOUT.
UH, YOU CAN SEE THE BREAKOUT OF THOSE PROJECTS.
UH, WE GAVE YOU A STATUS AS OF THE END OF LAST MONTH, UH, IN THE TABLE THAT THAT'S GIVEN THERE.
AND THE OVERALL BUDGET OF THE PHASE THAT YOU'VE APPROVED IS IN THAT TABLE AS WELL.
AND SO WE WANTED YOU TO HAVE THOSE OF THAT.
WE ALSO HAVE 35 THAT HAVE NOT MOVED INTO DESIGNER CONSTRUCTION YET.
'CAUSE WE'RE WORKING ON THE SCOPES AND THE PLANNING AND MAKING SURE THAT WE CAN DELIVER THOSE IN A RELIABLE WAY, UM, THROUGH THE PLANNING EFFORTS THAT ARE GOING ON RIGHT NOW.
AND THOSE ARE DESIGNATED WITH PLANNING IN THAT SAME TABLE, UH, THAT WAS PROVIDED TO YOU.
UH, AND SO, UM, I DO HAVE, UH, UM, RAFAEL EASY HERE WITH ME TODAY.
SO IF YOU'VE GOT SPECIFIC QUESTIONS ON SPECIFIC PROJECTS, WE CAN CERTAINLY GET WITH YOU AFTER THE FACT AND, AND ADDRESS THOSE AND ANSWER THOSE FOR YOU.
SO THE BIG NEED OF WHAT WE'RE HERE TO TALK ABOUT TODAY, WHAT ARE OUR FY 27 PROPOSED PROJECTS.
UM, SO I'M, I'M BREAKING THIS DOWN IN A COUPLE DIFFERENT WAYS.
WE GAVE YOU AN ATTACHMENT TO A PROJECT BY PROJECT LIST DIVIDED BY THE TYPE OF FACILITY.
UM, AND IN THAT THERE IS AN ACTUAL BUDGET.
UM, AND I ACCIDENTALLY CUT OFF THE BUDGET LINE UP HERE THAT SHOULD SAY BUDGET AND SAY WHERE THE FUNDING'S COMING FROM.
UH, WE'LL REPRINT THAT AND RESEND IT OVER TO YOU.
UM, BUT, UH, THE, UH, THE, WHAT WE WANTED TO DO IN THIS IS WE WANTED TO HAVE FOR YOU, WHAT IS THE PROJECT WHERE, YOU KNOW, WHAT IS IT GOING TO DELIVER? HOW MUCH IS IT GOING TO COST TO DELIVER THAT? AND THEN WHEN WE GO BEYOND THAT, UM, WHERE DO WE THINK THE FUNDING'S GOING TO COME FROM? AND SO WHEN WE LOOK AT THIS, UM, IN, IN THE SAME ORDER THAT WE LOOKED AT 'EM EARLIER, UM, WE'VE GOT FACILITIES LAID OUT THAT'S ABOUT THREE AND A HALF MILLION DOLLARS.
WE'VE GOT ABOUT $2.7 MILLION, UH, DEDICATED TOWARDS PARK FACILITIES TO IMPROVE TRAILS.
THE BAYTOWN NATURE CENTER, THE BAYLAND MARINA, UH, AND, AND, AND RECREATIONAL FACILITIES AROUND TOWN.
11.7 MILLION TOWARDS TRANSPORTATION AND MOBILITY.
UM, THAT IS, UH, MODERNIZING TRAFFIC SIGNALS, SIDEWALKS AND PEDESTRIAN CROSSINGS EXPANDING OUR, UM, A DA ACCESSIBILITY INVESTING IN NEIGHBORHOOD STREETS AND ROADWAYS.
UH, WE HAVE SEVEN, 7.4, UM, IN DRAINAGE INFRASTRUCTURE.
UM, AND THAT IS, UH, TOWARDS THE DANINA PROJECT THAT HAS BEEN ON THE, THE LIST FOR A WHILE.
UM, AND THEN, THEN THE REAL BIG MONEY, 56 MILLION IN OUR WATER INFRASTRUCTURE, UM, OUR, EXCUSE ME, OUR WASTEWATER INFRASTRUCTURE, 18 MILLION IN THE COLLECTION SYSTEM, 37 MILLION IN THE TREATMENT SYSTEM.
UH, THESE ARE NECESSARY UPGRADES TO HELP BRING US INTO COMPLIANCE WITH, UM, STATE AND FEDERAL LAWS WITH REGARDS TO THE CLEAN WATER ACT.
UM, AND THE, AND THEY'RE THE BEGINNING OF, YOU KNOW, 15 YEARS OF PROJECTS THAT WILL BE COMING FORWARD IN THAT REGARD.
AND 30 MILLION IN WATER INFRASTRUCTURE, ABOUT 24 MILLION IN OUR DISTRIBUTION SYSTEM, AND ABOUT 6 MILLION IN OUR TREATMENT SYSTEM.
UH, AND YOU CAN SEE THE BREAKOUT HERE OF WHERE THE, THE MONEY'S GOING, UH, BY FACILITIES.
UH, BUT WHAT I REALLY, UH, WHAT YOU'RE GONNA BE ASKING ME IS WHERE IS THE MONEY GONNA BE COMING FROM? AND SO WHEN WE, WE STEP FORWARD AND LOOK AT THIS, UH, WE KNOW THAT WE HAVE ABOUT,
[01:30:01]
UH, 9.4 MILLION, UH, FROM THE FY 26 GENERAL OBLIGATIONS THAT WERE VOTER APPROVED THAT GOES DIRECTLY INTO THOSE TRANSPORTATION PROJECTS.UH, WE HAVE ABOUT, UM, 500,000 PLUS OR MINUS THAT GOES, UH, TO PARKS FROM THE THE PARKS SPECIAL FUND.
UH, WE HAVE ALREADY IDENTIFIED ABOUT SEVEN AND A HALF MILLION DOLLARS FROM PROJECTS THAT HAVE BEEN COMPLETED, BUT STILL HAVE MONEY LEFT IN THE BUDGET THAT WE CAN REALLOCATE FORWARD, UH, TO, TO COVER SOME OF THE EXPENSES.
AND I'M GONNA SKIP THE UNFUNDED FOR A SECOND.
AND WE HAVE ABOUT 84 MILLION IN WATER AND WASTEWATER PROJECTS, UH, THAT ARE PROPOSED IN THAT LIST.
AND WE ARE RECOMMENDING A WATER AND WASTEWATER, UH, CO TO SUPPORT THOSE PROJECTS.
I'M GONNA JUMP BACK TO THE UNFUNDED REAL QUICK BECAUSE WE HAVE IDENTIFIED A TOTAL OF ABOUT 16 AND A HALF MILLION DOLLARS THAT WE BELIEVE THAT WE'RE GONNA BE ABLE TO REALLOCATE OUT OF PROJECTS THAT ARE COMPLETE OR ARE COMPLETING, UM, OR WERE CANCELED FOR ANOTHER REASON THAT WE CAN REALLOCATE TOWARDS THESE PROJECTS.
AND THAT IS ALMOST THE 9.7 THAT'S UNFUNDED, BUT IT'S JUST A LITTLE BIT LESS THAN THAT.
AND AS WE CONTINUE TO, UH, SHARPEN OUR PENCIL AND DIG THROUGH THAT, WE BELIEVE THAT WE WILL, WE WILL MOST LIKELY BE ABLE TO FIND THE REMAINDER OF THAT 9.7 THROUGH REALLOCATION, UH, TO COVER THAT.
UH, BUT IT, WE DO NOT HAVE THAT, THAT REALLOCATION TO COVER THE, UH, WATER AND WASTEWATER NEEDS THAT ARE LISTED OTHER THAN THE FEW THAT ARE SHOWN IN THE TABLE TWO THAT WAS PROVIDED TO YOU.
I'LL GO AHEAD AND JUMP FORWARD TO THE 28 TO 31 NEEDS.
I'M NOT GONNA GO INTO A LOT OF DETAIL ON THESE, BUT I WILL, I WILL SAY THAT WHEN WE LOOK AT THE 28 TO 31 NEEDS, THEY ARE ALSO PROVIDED TO YOU PROJECT BY PROJECT IN ATTACHMENT THREE WITH A BUDGET IF WE HAVE IT.
UM, IN SOME CASES WE HAVE A NEED THAT'S BEEN PROVIDED BY OUR SISTER DEPARTMENTS, UM, BUT THAT WE HAVE NOT YET BEEN ABLE TO IDENTIFY WHAT THE COST OF THAT MIGHT BE.
SO YOU MAY SEE SOME OF THOSE AS TVD, BUT IT'S ABOUT $320 MILLION, UM, OF FUTURE NEED THAT HAS BEEN IDENTIFIED OVER FISCAL YEARS.
28 TO 31, WHICH, UH, WILL BE COME INTO MORE FOCUS AS WE MOVE INTO FUTURE YEAR CIPS.
UM, IT'S DISTRIBUTED THROUGHOUT ALL OF THE, UH, CAPITAL PROJECTS, UM, THE CATEGORIES, UH, SOMETIMES THE NEED IS MORE CAPACITY.
UH, YOU SEE JOHN, JOHN MARTIN THERE, IT, IT NEEDS IT, YOU KNOW, IT NEEDS TO BE WIDENED AND NEEDS, UH, TO IMPROVE THE DRAINAGE ON IT.
AND SOMETIMES IT'S IN OUR FACILITIES.
UH, WE HAVE A WHOLE LIST OF FIRE STATIONS, UH, THAT HAVE BEEN PUT ON UP FOR RENOVATION.
I KNOW THAT FIRE CHIEF HAS BEEN VERY, VERY, UH, UM, POSITIVELY, UH, VOCAL IN THE NEEDS THAT, UH, WE NEED TO SUPPORT HIS TEAM AS THEY SUPPORT OUR RESIDENTS OUT THERE.
UH, AND SO AS WE LOOK AT THIS ACROSS THE BOARD, UM, FOR FY 27, UH, WE'VE GOT 46 PROJECTS PROPOSED, NEEDING ABOUT 111 AND A HALF MILLION DOLLARS, UH, TO MAKE THAT, UH, HAPPEN.
WE'VE GOT MORE THAN 72, MORE THAN 70 PROJECTS, UH, IN FY 8 28 TO 31, UM, WITH A BEGINNING COST TAG OF $320 MILLION.
AND WHEN WE LOOK AT THAT, WE RECOGNIZE THAT, UM, THESE, THESE PROJECTS, UM, ARE GONNA PRIORITIZE QUALITY OF LIFE, UM, IN BAYTOWN, BUT THEY'RE GONNA DO IT THROUGH THE INFRASTRUCTURE THAT SUPPORTS US FROM UNDERNEATH WATER WASTEWATER MOBILITY DRAINAGE IN OUR PUBLIC FACILITIES.
THAT'S HOW WE SUPPORT IANS IN HOW THEY, THEY LIVE THEIR LIVES DAILY.
AND SO WITH THAT, I AM AVAILABLE FOR YOU TO, UH, PEPPER ME WITH REALLY HARD QUESTIONS.
SO I THINK LIKE ON ON ONE PARTICULAR UNFUNDED, WHICH WE KNOW WE'VE BEEN TALKING A LOT ABOUT WITH THE DONNA AREA, UM, BUT THAT, THAT DOESN'T MEAN THAT WE CAN STILL DO GRANTS OR APPLY FOR GRANTS AND ALL OF THAT TO TRY TO GET THOSE FUNDED, RIGHT? BECAUSE I THINK WE HAVE TWO, THE BAYLAND AND DENA THAT ARE CURRENTLY CORRECT.
WE'RE LOOKING AT UNFUNDED FOR 27.
SO WE ARE VERY ACTIVELY LOOKING AT GRANT OPPORTUNITIES.
UH, IN FACT WE HAVE ONE THAT WE'RE LOOKING TO SEE IF DANNY BENEFITS RIGHT NOW, UM, THAT JUST CAME OUT FROM SEX WATER DEVELOPMENT BOARD, THAT THEY SPECIFICALLY SAY BETWEEN TWO AND A HALF AND $10 MILLION IS THE RANGE FOR EACH INDIVIDUAL PROJECT THEY WOULD FUND.
AND THAT'S ONE THAT DANNY BE HAD, WOULD POSSIBLY FIT WELL, YEAH.
'CAUSE I KNOW THE GLO IS ALREADY RAMPING UP TO SEE, YOU KNOW, WHAT ELSE THEY CAN FUND.
AND WE'VE ALREADY SEEN SOME APPROVALS COME THROUGH HCAC ALREADY, SO I WANNA MAKE SURE THAT WE KEEP AN EYE ON THOSE.
[01:35:01]
GOOD JOB OF KEEPING US ALERTED TO WHAT'S COMING OUT.I I WILL ALSO SAY THAT THE, THE, UM, THE CHANNEL, THE MARINA, UM, ITEM THAT YOU SEE MM-HMM
IS REALLY NOT THE FULL AMOUNT THAT THE, THE MARINA NEEDS.
IT'S THE MINIMUM AMOUNT THAT WE NEED TO CONNECT, UM, TO THE CHANNEL, UM, AS, AS A DELAYED DREDGING WAS DONE.
WE NEED THE FULL DREDGING, WHICH IS A MUCH BIGGER PROJECT MM-HMM
UH, TO GET BACK IN THE LIST AS WELL.
UM, AND I KNOW WE'VE, WE'VE BEEN THROUGH THE PROPOSED BEFORE, BUT NOT, I MEAN THIS IS NOT URGENT FOR ME RIGHT NOW, BUT IF WE CAN GET A DESCRIPTION OF THE PROJECTS FOR THE FUTURE NEEDS, UH, BECAUSE BEFORE WE KNOW IT, WE'RE GONNA BE WORKING ON 28 ALREADY,
SO, UM, I DON'T KNOW IF THERE'S A DESCRIPTION OF THE DIFFERENT PROJECTS, ESPECIALLY AS IT, YOU KNOW, FOR LIKE THE PARKS, WHAT ARE WE DOING WITH SOME OF THESE PROJECTS, YOU KNOW, THE IMPACT AND ALL OF THAT.
UM, SO WE WILL BE WORKING WITH FINANCE TO BUILD OUT THE BOOK THAT HAS THE INDIVIDUAL PROJECT DETAILS THAT, THAT YOU'RE, THAT YOU'RE USED TO SEEING.
UM, THAT HAS THE FULL DESCRIPTION, UM, AS WELL AS THE FUNDING SOURCES AND ALL THAT.
NO, I, I DON'T HAVE ANY OTHER QUESTIONS.
I THINK THIS IS WELL LAID OUT.
I KNOW THE CIP COMMITTEE HAS BEEN WORKING HARD, UM, AND I APPRECIATE, I KNOW I LOOKED AT YOU 'CAUSE YOU WERE ON THE CIP BEFORE, SO
I DON'T, I DON'T HAVE ANY OTHER QUESTIONS, SO I APPRECIATE YOU.
AGAIN, THANK YOU AND THANK MY COLLEAGUES ON CIP FOR COMING UP WITH THIS YEAR'S BUDGET.
I THINK, UM, IT REALLY TACKLES A LOT OF ISSUES THAT NEED TO BE TACKLED AS FAR AS DRAINAGE AND, AND THOSE AND, AND THINGS THAT ARE OVERDUE AND THAT HAVE TO BE DONE, UM, MOVING FORWARD.
THIS UNFUNDED, THIS KIND OF KEEPING AN EYE ON THINGS MOVING FORWARD IS, UH, YOU KNOW, THERE'S BEEN A CALL FOR THE BAYWAY CORRIDOR TO BE LOOKED AT AND MOBILITY AS FAR AS SIDEWALKS THERE.
I LIKE TO SEE WAYS WE COULD SHARPEN THAT PROVERBIAL PENCIL, UM, LOOK INTO GRANTS AND, AND REALLY FIGURING OUT WAYS WE COULD START MOVING FUNDING TOWARDS THAT, THAT CORRIDOR.
UM, AND GETTING AT LEAST SOME COMPONENTS ADDED FOR MOBILITY OVERALL.
UM, UH, I KNOW WE TALKED ABOUT NOT JUST LOOKING ABOUT FUNDING, BUT ALSO BANDWIDTH.
SO ALSO ASKING THOSE QUESTIONS TO MAKE SURE NOT ONLY THAT IT'S FUNDED THAT, BUT WE HAVE THE BANDWIDTH NECESSARY, NECESSARY TO, UH, TO GET THOSE JOBS DONE.
SO I'M LOOKING FORWARD TO HAVING THOSE DISCUSSIONS MOVING FORWARD.
BUT OVERALL, YOU KNOW, I, I DON'T WANNA OVER TALK 'CAUSE WHAT WE TALKED ABOUT ON, ON CIP, SO, BUT, UH, SO I I WILL TELL YOU THAT, UH, ONE OF THE THINGS THAT IZZY AND HIS TEAM, THEY ARE, THEY ARE CURRENTLY AT, AT THEIR LIMIT, IF NOT A LITTLE BEYOND.
AND THAT'S WHY WE'VE BEEN USING SOME OUTSIDE, UM, PROJECT MANAGEMENT TO HELP AUGMENT SO THAT WE CAN KEEP THINGS MOVING FORWARD.
UM, WE, WE DON'T WANNA STAFF TO THE, THE HILLTOPS, WE WANNA STAFF TO THE VALLEYS AND, AND USE THAT AUGMENTATION TO, TO MAKE UP THE DIFFERENCES.
UM, THAT WAY WE'RE, WE'RE, WE'RE STAYING CONSISTENTLY BUSY ALL THE TIME, BUT WE'RE NOT OVERBURDENED WHEN THOSE EXTRA THINGS COME IN.
THERE'S A METRIC THERE, RIGHT.
WITH, WITH FUNDING AND PERSONNEL.
SO I THINK Y'ALL BALANCE THAT WELL.
SO LOOKING FORWARD TO LOOKING AT BOTH OF THOSE WHEN WE'RE, WE'RE WE'RE MAKING DECISIONS ABOUT FUTURE CIP PROJECTS.
I HAVE ONE MORE QUICK THING, BUT I KNOW MR. FRANCO WANTS TO I WAS GONNA SAY CONCRETE, YOU DON'T KNOW WHAT HE'S GONNA TALK ABOUT.
I WAS A C HAD BINGO FOR CONCRETE.
NO, I APPRECIATE YOU SAYING THAT ABOUT THE, YOU GETTING OUT ON BRICK STREET, SO ABOUT PROJECT MANAGEMENT AND ALL THAT OTHER STUFF BECAUSE I MEAN, IT, IT, IT IS, THERE'S SOME PROJECTS YOU'RE GOING, YOU, YOU, YOU HAVE A FOUR OR FIVE YEAR PROJECT WHERE YOU'RE GONNA NEED A PROJECT MANAGER THERE FULL TIME AND SOMETIMES YOU NEED 'EM FOR A COUPLE MONTHS.
SO IT, IT HELPS OUT BY, BY SUPPLEMENTING SOME OF THOSE SERVICES TO THOSE GUYS.
AND IT ALLOWS US NOT TO HAVE TO WORRY ABOUT, YOU KNOW, HEY, WHAT ARE WE GONNA DO WITH THIS GUY? YOU KNOW, WE, WE DON'T WANNA LAY HIM OFF.
SO I APPRECIATE THAT, THAT THAT'S, THAT'S AN AVENUE YOU'RE LOOKING AT.
'CAUSE THAT DOES HELP US OUT AND HELPS US REDUCE SOME OF THE COSTS THAT WE HAVE TO, PLUS PUT SOME OTHER EYES THAT WE MIGHT, THAT YOU NEED.
'CAUSE SOMETIMES YOU'RE JUST OVERSTAFFED AND WE DON'T WANT TO, THAT'S WHERE WE, MISTAKES CAN HAPPEN AND THE COST OVERRUNS HAPPEN WHEN SOMEONE'S JUST NOT ABLE TO PUT THEIR EYES ON IT.
SO I APPRECIATE YOU LOOKING AT THAT AND LOOKING AT OTHER AVENUES TO TRY TO MAKE SURE THAT THESE THINGS ARE GETTING DONE.
UM, AND THIS IS AGAIN FOR A FUTURE.
UM, SO WHEN WE STARTED LOOKING AT THE MARKET STREET CORRIDOR, UM, WE TAPPED INTO BAYWAY TO DO THAT ONE.
YOU KNOW, IT'S TAKEN ABOUT 10 YEARS, BUT YOU KNOW, WE'RE GETTING THERE ON MARKET STREET AND I HOPE IT DOESN'T TAKE AS LONG WITH BAYWAY, BUT ONE OF THE OTHER CORRIDORS THAT
[01:40:01]
WE WANTED TO LOOK AT WHEN I WAS WORKING WITH SHARON IS THE PELLY AREA BECAUSE WHEN WE KICKED OFF MARKET, I WANTED TO INCLUDE PELI, BUT THEY SAID NO, LET'S TAKE IT ONE BITE AT A TIME, WHICH I UNDERSTOOD.UM, BUT I KNOW PELI HAD, UM, A LOT OF EMPTY, UH, STOREFRONTS AND, YOU KNOW, I I THINK I'D LIKE TO, TO SEE WHAT WE CAN DO TO REVITALIZE THAT AREA.
UM, AND THAT'S ONE OF THE THINGS THAT, UH, YOU KNOW, BRENT, WHO, UM, I REPORT UP THROUGH ALSO HAS ECONOMIC DEVELOPMENT.
SO WE HAVE A LOT OF OF JOINT CONVERSATIONS MM-HMM
ON HOW THE INFRASTRUCTURE SUPPORTS DEVELOPMENT.
DOES THE DEVELOPMENT SUPPORT INFRASTRUCTURE AS THE INFRASTRUCTURE SORT DEVELOPMENT, YEAH.
'CAUSE IT IS THAT ON THE A RIZ AS WELL? PLI? I DON'T REMEMBER.
IT'S PEL ON A RIZ THE REINVESTMENT ZONE.
UM, I, I APPRECIATE THE WORK AND THE EFFORT AND, AND I WANT TO KEEP PUSHING HARD ON THE AREA DRAINAGE.
I KNOW THAT'S PART OF THE JOINT PROJECT WITH HARRIS COUNTY AND, AND WE'RE STALLING THEM OFF 'CAUSE WE'RE NOT FUNDING.
AND IT'S KIND OF LIKE THE LAST HEAVY RAIN THAT WE HAD.
I MEAN, THAT, THAT WAS REALLY JUST A GULLY WASHER.
I HAD HOUSES FLOOD IN MY DISTRICT AGAIN.
I MEAN, WE DON'T EVEN HAVE TO WAIT FOR HURRICANES, FOR HOUSES TO, TO GET WATER IN THEIR DRIVEWAYS AND IN THEIR GARAGES.
WE, WE HAVE GOT TO KEEP CONCENTRATING ON THE DRAINAGE.
AND MY DISTRICT, LAURA'S DISTRICT AND SARAH'S DISTRICT, WE'RE AT THE BOTTOM END OF THE PIPE.
AND, AND WE, WE KEEP GETTING FLOODED OUT AND I APPRECIATE EVERY PROJECT THAT'S ON HERE.
BUT AFTER THESE HEAVY RAINS AND I GET CALLS FROM OUR, OUR CONSTITUENTS AND NEIGHBORS GOING, I HAD WATER IN MY GARAGE AGAIN, OR I HAD WATER ON MY DRIVEWAY AGAIN.
YOU KNOW, WHEN Y'ALL GONNA DO SOMETHING ABOUT THE DITCHES AND WATER'S OVERFLOWING, YOU KNOW, WE TALK ABOUT QUALITY OF LIFE ALL THE TIME, BUT YOU KNOW, EVERY TIME THE, WHEN THERE'S THUNDER AND LIGHTING OUT THERE, YOU HAVE PEOPLE THAT ARE WORRIED.
THERE'S, IS MY HOUSE GONNA FLOOD TODAY? WE'VE GOTTA GET AWAY FROM THAT.
UM, I LIKE THAT IN THE FUTURE 28 31, WE'RE LOOKING AT STATION FOUR, THE CONSTRUCTION SIDE OF THAT.
I THINK IT'S THE NEXT OLDEST STATION NEXT TO ONE.
SO, AND ONE'S ON THE LIST TO START DOING ACQUISITION.
I THINK THAT'S A GOOD THING AS WELL.
OUR, OUR, BASICALLY THE FIRE EQUIPMENT HAS OUTGROWN THE HOUSES WE KEEP 'EM IN MM-HMM
UH, SO THAT'S, THAT'S IMPORTANT.
UM, AS I GET OLDER, IT'S MORE AND MORE IMPORTANT TO MAKE SURE THERE'S EMS UNITS IN THERE TOO.
UM, BUT I, I THINK Y'ALL ARE DOING A GOOD JOB AS FAR AS KEEPING A, A STRONG EYE ON IT.
BUT I'M GONNA KEEP PUSHING THE DRAINAGE ISSUES.
UM, YOU KNOW, WE JUST DID THE TEXAS AVENUE STUFF AND, AND THAT AREA TO HELP THAT, AS YOU INDICATED, WE'RE VERY LOW AND WE'RE VERY FLAT AND, AND THERE'S JUST NOT A LOT OF PLACES FOR THAT WATER TO GO IF WE DON'T HAVE STRONG INFRASTRUCTURE IN PLACE.
AND, AND I'M JUST GONNA KEEP PUSHING THAT HARD.
SO I APPRECIATE Y'ALL'S EFFORTS.
ANYONE ELSE? ANYTHING ELSE? MAYOR AND COUNCILOR? UH, I JUST WANNA HIGHLIGHT, UH, ONE OF THE CHANGES THIS YEAR, UH, AS CAROL WAS PRESENTING THIS, UH, BRENT AND CAROL AND THE TEAM HAVE DONE A HECK OF A JOB WORKING WITH THE CIP COMMITTEE AND THE FINANCE COMMITTEE FOR A NEW PROCESS FLOW.
AND THAT'S THE REALLOCATION OF FUNDS.
AND THAT'S IMPORTANT FOR Y'ALL TO KNOW, BUT ALSO FOR THE CITIZENS TO KNOW IN THE PAST THERE WAS NOT A VERY CLEAR AVENUE OF HOW THAT WAS DONE.
UM, IN FACT, I WOULD SAY THAT COUNCIL WAS PROBABLY NOT EVEN AWARE THAT MILLIONS OF DOLLARS WAS BEING TRANSFERRED, UH, FROM ONE PROCESS TO THE NEXT.
AND, UM, WAS IT GOING TO A PROJECT THAT COUNCIL DIDN'T EVEN GIVE A BLESSING ON IN THE PAST? RIGHT.
AND, UH, PART OF THEIR NEW PROCESS THAT THEY PUT IN PLACE IS BRINGING IT TO Y'ALL DURING THE BUDGET PROCESS.
SO THERE'S NO REALLOCATION OF ANY MONEY UNTIL Y'ALL BLESS THAT OFF INTO THE BUDGET, THE ADOPTED BUDGET.
AND SO THAT MONEY IS JUST FILTERED OVER AND THEN PRESENTED TO THE CIP COMMITTEE AND THE FINANCE COMMITTEE THROUGHOUT THE YEAR.
SO EVERYBODY'S INVOLVED IN THE PROCESS AND I JUST WANNA HIGHLIGHT THAT.
THAT'S A GOOD TRANSPARENCY PIECE.
THAT IS ALL WE HAVE FOR THE CIP AND I WILL HAND IT BACK TO THERE.
UM, I JUST HAVE ONE FINAL COMMENT BEFORE, UH, JAMIE COMES UP TO TALK ABOUT THE MULTI-YEAR CONTRACTS.
UM, IT'S JUST A REMINDER THAT THE SANITATION FEES WILL GO UP TO THE MAX OF 3.9% THIS YEAR.
UM, THE CONTRACT IS UP IN DECEMBER OF 27.
SO THE PLAN IS TO START, UM, WORKING ON THE NEW CONTRACT IN JANUARY OF 2027.
AND ALSO THE UPDATE CHANGES THAT YOU HAVE IN YOUR MEMO.
UH, THE BUDGET HAS BEEN UPDATED ON THE WEBSITE WITH THOSE CHANGES FOR THE CITIZENS.
[01:45:07]
OKAY.UH, THAT PAGE THAT LAURA HAD KIND OF PULLED OUT IS IN YOUR MEMO AND IT SAYS DRAFT ON IT.
AND THE TITLE IS MULTI-YEAR CONTRACT SPENDING APPROVAL.
UH, THIS REPRESENTS NOT A SPENDING CHANGE BUT A PROCESS CHANGE.
UH, THIS YEAR WE'VE BEEN WORKING VERY HARD WITH A CIT TEAM THAT'S A CONTINUOUS IMPROVEMENT TEAM TO LOOK AT HOW CONTRACTS MAKE THEIR WHOLE WAY THROUGH THE LIFE CYCLE FROM THE TIME WE PROCURE SOMETHING AND TELL MONEY CAN BE UNTIL IT'S APPROVED BY COUNCIL AND THEN WE CAN ACTUALLY SPEND THE MONEY.
AND IT HAS BEEN, UH, IT'S BEEN A BEAR AND, UH, WE HAVE MILES YET TO GO BEFORE WE SLEEP.
AND ONE OF THE REASONS IT'S SO COMPLEX IS IT INVOLVES NOT ONLY THE DEPARTMENT THAT'S PROCURING THE ITEM AND GETTING THE CONTRACT IN LINE AND THE VENDORS, BUT IT REALLY, THE HEAVY PLAYERS ON OUR END ARE LEGAL, THE CITY CLERK'S, OFFICE AND FINANCE.
SO THERE ARE SO MANY HANDS, UH, IN THIS POT, SO MANY COOKS, UH, IN THE KITCHEN AND IT'S A PRETTY CROOKED PATH.
SO AS WE WORK TO STRAIGHTEN IT OUT, ONE THING THAT'S, IT'S PRETTY MINOR, UH, EFFICIENCY THAT WE FOUND WAS THERE ARE MANY CONTRACTS THAT WE DO AS A CITY THAT ARE TRULY MULTI-YEAR.
AND THE DIFFERENCE BETWEEN A MULTI-YEAR CONTRACT AND A CONTRACT THAT CAN BE RENEWED ANNUALLY, UH, IS SIGNIFICANT HERE.
'CAUSE HERE WE'RE ONLY TALKING ABOUT MULTI-YEAR CONTRACTS WHERE THE ORIGINAL TERMS ARE THREE YEARS OR FIVE YEARS, AND THEN SOMETIMES THEY CAN EVEN RENEW.
BUT, BUT WE'RE REALLY TALKING ABOUT THAT ORIGINAL TERM SPANNING MULTIPLE YEARS.
IN THE PAST, THOSE WOULD COME TO YOU EVERY SINGLE YEAR, UH, FOR SPENDING APPROVAL OR FOR RE-APPROVAL, AND THEY STILL WILL COME TO YOU.
YOU STILL, THAT PART DOESN'T CHANGE.
BUT INSTEAD OF IT SHOWING UP GENERALLY ON THE CONSENT AGENDA, YOU KNOW, AT DIFFERENT TIMES THROUGHOUT THE YEAR, WE'VE TRIED TO AGGREGATE THE LIST AND SAY, WHEN WE APPROVE THE BUDGET, WE WOULD APPROVE THE SPENDING, THE, UM, OF THE CONTRACTS THAT YOU HAVE ALREADY APPROVED IN THE PAST.
SO WHEN YOU LOOK AT THAT LIST, IT'LL HAVE, UH, THE DEPARTMENT THAT'S, UH, SIGNIFICANT.
IT'LL HAVE THE VENDOR NAME, IT'LL ALSO HAVE THE ORDINANCE NUMBER.
THESE WILL HAVE ALREADY BEEN APPROVED BY ORDINANCE, THE CONTRACT, THE WHOLE, YOU'VE ALREADY SEEN IT ONCE.
UH, AND THIS JUST ALLOCATES THE SPENDING OR ALLOWS THE SPENDING FOR THAT FISCAL YEAR FOR YOU GUYS, NO BIG DEAL.
RIGHT? GENERALLY THEY SHOWED UP ON THE CONSENT AGENDA.
HOWEVER, WE WERE RUNNING EACH OF THESE ALL THE WAY THROUGH THE GAUNTLET FROM START TO FINISH WITH LEGAL REVIEW, PUTTING IT ON THE AGENDA, HAVING IT GET APPROVED BY, BY 10 DIFFERENT PEOPLE.
UH, AND IT ESSENTIALLY, BECAUSE THE CONTRACT WAS ALREADY IN PLACE, THERE WAS A LOT OF REDUNDANCY AND THERE ARE SO MANY TOUCH POINTS TO CONTRACTS IT OR FROM ANY ITEM THAT GOES ON THE AGENDA.
SO MANY PAIRS OF EYES AND HANDS ARE LOOKING AT IT.
THERE'S ONLY 19 ON THESE LISTS.
SO IT'S NOT A HUGE EFFICIENCY, BUT IT'S A GOOD START TO US.
UH, THAT MEANS FOR ESPECIALLY THE DEPARTMENTS THAT ARE ON THERE A LOT, HR AND ITS WILL NOT HAVE TO GO THROUGH THE ENTIRE PROCESS STEP BY STEP BY STEP BY STEP BY STEP, BY STEP BY STEP.
UH, WE HAVE PROCESS MAPS THAT STRETCH ON, UH, FOR METERS AND YOU GUYS ARE STILL ULTIMATELY APPROVING 'EM.
IT'S JUST YOU'RE APPROVING THEM WITH THE BUDGET INSTEAD OF AT DIFFERENT COUNCIL MEETINGS AS THEY COME UP THE RED, THEY'RE NOT RED LINED, UH, THEY JUST HAVEN'T HAPPENED YET.
UH, THIS IS A DRAFT AND IT'S A LOOK INTO THE FUTURE.
SO ONE OF THOSE ITEMS, UH, IS ACTUALLY ON THE AGENDA TONIGHT, UH, FOR APPROVAL.
SO I DIDN'T HAVE THE ORDINANCE NUMBER, I DIDN'T HAVE THAT INFORMATION.
UH, AND THE OTHER ONE SHOULD COME BACK THE SECOND MEETING IN AUGUST SO THAT BY THE TIME YOU APPROVE THE BUDGET, THIS LIST WOULD BE UPDATED TO REFLECT ALL THOSE THAT ARE ALREADY IN PLACE.
AND IT HOPEFULLY, FINGERS CROSSED, UH, WILL BE A BIG BIGGER EFFICIENCY ON OUR END OF SAVINGS OF TIME AND SOFT COST.
SO QUESTIONS? I HAVE A QUESTION.
BUT WHERE IN THIS IS THIS LIST GOING TO BE? SO I CAN TURN TO A PAGE AND SAY HERE'S THE 19.
SO I CAN KNOW THAT THIS IS WHAT I'M, IT'S GONNA BE AN APPENDIX IN THE BACK OF THE BOOK, AN APPENDIX.
THEY CAN'T DECIDE IF I WANNA CALL IT APP APPENDIX, ORUM LIKE LIST IN HERE SO WE KNOW.
AND TONIGHT IT'S JUST THAT DR.
I WANT, BECAUSE I WAS GONNA TALK ABOUT IT.
I WANTED YOU TO SEE WHAT I WAS TALKING ABOUT.
SO IT'S MARKED AS DRAFT, BUT IT'LL BE AN OFFICIAL APPENDIX TO THE BUDGET.
I, I JUST DIDN'T WANT TO HAVE TO SEARCH FOR EACH AND EVERY ONE OF THESE LINE ITEMS IN A LINE ITEM INSIDE SOMEBODY'S DEPARTMENT IN A BUDGET.
THE LINE ITEM IS, I'LL FIND IT.
AND THE LINE ITEM IS ON THE CHART JUST BECAUSE WE DO WANNA MAKE SURE THAT WE WERE RESPONSIBLE AND BUDGETED FOR IT AS, AS THE DEPARTMENTS WERE PREPARING THEIR BUDGET.
IT'S NOT NEW MONEY, IT'S NOT DIFFERENT MONEY, IT'S JUST THE, THE EXPENDITURE APPROVAL.
UHHUH, MAYOR AND COUNSEL, THIS IS ALSO IMPORTANT.
IF Y'ALL REMEMBER A CITIZEN DID COME AND TALK TO US ABOUT WHY THE CONTRACTS AREN'T LISTED INTO THE BUDGET.
THIS WILL LIST THE CONTRACTS THAT ARE MULTI-YEAR AND BEING APPROVED.
[01:50:01]
THE OTHER ONES ARE NOT LISTED BECAUSE AS JAMIE JUST SAID, THEY AREN'T APPROVED UNTIL YOU APPROVE THEM.SO WE CAN'T PUT 'EM IN THE BUDGET BECAUSE IF WE PUT 'EM IN THE BUDGET, THEN WE'RE ASSUMING THAT THEY'RE APPROVED.
WE HAVE TO GO THROUGH THE PROCESS AND APPROVE EACH ONE, BUT THE ONES, UH, TO THAT INDIVIDUAL'S POINT WHERE WE CAN HIGHLIGHT 'EM, WE WILL HIGHLIGHT 'EM.
AND IT'S ALSO AN EFFICIENCY THAT WE FOUND AS WELL.
SCOTT HAS HIS HAND RAISED MAYOR AND COUNSEL.
I JUST WANTED TO, UM, ALSO, UH, POINT OUT FOR THOSE OF YOU WHO ARE PARTICULARLY CONCERNED WITH PROCUREMENT ISSUES, UM, THEY WEREN'T, WE WORKED, I KNOW THEY WEREN'T
THAT'S ONE OF THE REASONS YOU ONLY SEE 19 OF THEM ON THIS LIST.
THERE ARE LOTS OF HOOPS THAT WE HAVE TO GO THROUGH IN ORDER TO HAVE A MULTI-YEAR CONTRACT.
AND WE DISCUSSED HOW THAT PROCESS TAKES PLACE TO MAKE SURE THAT WE ARE ABSOLUTELY COMPLIANT.
MAYOR AND COUNCIL, I HAVE ONE FINAL THING.
UM, UH, I DO WANT TO ADDRESS, UH, THE SHIFT THAT WAS MADE EARLIER THIS YEAR WHEN, UH, JAMIE WAS MADE AN ASSISTANT CITY MANAGER, AND WE HAVE THREE ASSISTANT CITY MANAGERS.
UM, PART OF THAT SHIFT I WAS TALKING TO Y'ALL AND TO THE CITIZEN ABOUT WAS REFOCUSING.
AND, AND CAROL MENTIONED HOW HER AND BRAND ARE STRATEGICALLY WORKING ON HOW ECONOMIC DEVELOPMENT IS SUPPORTING OR THE INFRASTRUCTURE SUPPORTING ECONOMIC DEVELOPMENT.
BUT ONE OF THE OTHER THINGS THAT THEY'RE DOING IS WORKING ON OUR IDAS AND OUR TWO TWELVES AND BUILDING REVENUE THROUGH THAT PROCESS.
IT WAS SOMETHING THAT WAS NEGLECTED FOR YEARS.
UM, I WOULD SAY PROBABLY SINCE FOR DECADES PLUS.
AND THERE WAS NOT ENOUGH ATTENTION PAID TO IT.
AND ONE OF THE THINGS THAT, AND THIS IS JUST ONE EXAMPLE.
WE HAVE OVER 100 IDAS, OVER 100 OF THEM.
THEY, THEY HAVE FOUND 300 MORE ACCOUNTS THAT THEY HAVE TO WORK WITH.
THIS IS 180 A, AND THIS IS WITH AIR PRODUCTS LLC.
AND THEY PAY US $918,000 A YEAR.
AND THROUGH WHAT BRAND AND HIS TEAM ARE WORKING ON RIGHT NOW, THAT REVISED PIECE TO ENSURE THAT THE APPRAISAL VALUE IS RIGHT, THAT 918 IS NOW BEING MODIFIED TO $1,103,000.
SO THEY FOUND $200,000 JUST ON ONE IDA THAT HAS TO BE CORRECTED FOR INVOICING.
AND SO IT'S IMPORTANT TO KNOW THE, THE CHANGES THAT WE'RE MAKING ARE, ARE, ARE BEING DONE INTENTIONALLY IN AN EFFORT TO FIND THE, THE MOST VALUABLE REVENUE SOURCE THAT WE HAVE, WHICH IS OUR IDA IN TWO TWELVES, AND FINDING OUT WHERE THEY ARE OR NOT MEETING THE PIECES.
AND ULTIMATELY WHAT WE FOUND IS THIS IS ACTUALLY A CHAMBERS COUNTY APPRAISAL DISTRICT PROBLEM AND NOT A CITY PROBLEM.
IT'S A CITY PROBLEM FROM US NOT WATCHING IT LIKE WE WERE IN THE PAST.
BUT IT'S SOMETHING THAT WE'RE DOING, UH, UH, DILIGENTLY.
NOW I JUST WANNA MAKE IT VERY APPARENT THAT THAT CHANGE WAS MEANT TO BRING IN MORE REVENUE.
AND THIS 1 98 IS BRINGING IN 200,000 EXTRA DOLLARS A YEAR.
HOW LIKELY ARE WE TO GET THAT THAT ADDED AMOUNT? THIS IS THE ACTUAL INVOICE GOING OUT TO THE INDIVIDUAL.
AND WHAT I'M, WHAT I'M ASKING IS IF THEY SAY THEY WANNA DISPUTE THAT THEY CANNOT, THEY CANNOT.
THIS IS TO, BASED ON THE, THE, UH, THE VALUES THAT WE HAVE FOUND HAVE BEEN WRONG.
THE OTHER 300 IS GONNA BE THE LEGAL CHALLENGE THAT WE WERE WORKING ON THAT HAVE TO DEAL WITH INVENTORY.
THIS IS TO MR. LESTER'S POINT EARLIER.
THIS IS TO DO WITH THE, UH, BASE VALUES AND THE, UH, CONTRACT AGREEMENTS.
AND SO THOSE BASE VALUES THAT ARE, THAT ARE NEGOTIATED ONLY GROW MM-HMM
AND SO THEY NEED TO BE PAYING WHAT'S BASED ON THE BASE VALUE.
SO THIS IS NOT ONE OF THE ONES THAT WE, THAT WAS FOUND NOT OF THE EXTRA 300? NO SIR.
NOT THE, THIS IS A LONGSTANDING IDA THAT WE HAVE.
BUT I JUST WANNA HIGHLIGHT THE WORK THAT THEY ARE DOING TO TRY TO HELP BRING MORE REVENUE TO, TO THE CITY.
ANYTHING ELSE? THAT IS ALL WE, UM, TO ACCIDENT COUNSELING.
WELL, BEFORE WE CLOSE IT OUT, MAYOR, BUT, UM, IF, IF Y'ALL ARE GOING TO
[01:55:01]
CLOSE THIS OUT, REMEMBER WE HAVE ANOTHER WORK SESSION AT THE NEXT COUNCIL MEETING, IF WE CAN DECIDE ON A TIME THAT WE'D WANNA START, BECAUSE WE AREN'T GONNA PRESENT ANYTHING DIFFERENT AT THIS POINT, OR WE DON'T PLAN TO PRESENT ANYTHING DIFFERENT.SO Y'ALL WOULD'VE TO DECIDE WHAT TIME Y'ALL WANNA MEET OR HOW MANY QUESTIONS MR. LESTER WANTS TO ASK US, OR, OR NO, I HAVE TO
UM, SO HE NEEDS TWO DAYS, IN OTHER WORDS.
SO I KNOW MR. LESTER LIKES TO REVIEW IT THOROUGHLY AND HE HASN'T HAD THAT OPPORTUNITY MM-HMM
AND SO IF EVERYBODY IS OKAY WITH IT, I'D LIKE TO START AT FOUR AND TO GIVE HIM THAT OPPORTUNITY TO, 'CAUSE I KNOW HE ALWAYS HAS A LOT OF QUESTIONS.
UM, BUT I'M OPEN TO WHATEVER TIME EVERYBODY WANTS.
WE'RE FINISHING THIS, UH, 30 MINUTES AHEAD.
WE GOT 30 MINUTES BEFORE THE NEXT MEETING, AND I'M GONNA STICK TO WHAT I RECOMMENDED THE LAST TIME.
INDIVIDUALS, PEOPLE DO WANNA SHOW UP.
I ATTENDED A FEW EVENTS TODAY WHERE PEOPLE WERE ASKING QUESTIONS THAT PEOPLE HAVE BEEN ASKING QUESTIONS.
WHY ARE WE STARTED AT FOUR O'CLOCK WHEN THEY WOULD LIKE TO BE HERE? SO I'M GONNA RECOMMEND THAT WE START AT FIVE.
AND THEN, LIKE I SAID, THERE ARE PEOPLE WHO NEED TO PICK THEIR KIDS UP FROM SCHOOL.
MY DAUGHTER WAS ONE OF THEM AND I HAD TO MAKE ARRANGEMENTS TODAY BECAUSE SOME OF THESE SCHOOLS DON'T GET OUT UNTIL AFTER FOUR.
WHAT DAY IS IT ON? IT'S THE 30, 27TH.
YEAH, THE FOURTH THURSDAY OF THE MONTH.
SO I NEED, UH, ANYONE ELSE LIKE TO RECOMMEND A TIME? I'LL HAVE MY ANSWERS, QUESTIONS ANSWERED BEFORE THAT MEETING, SO, OKAY.
IF WE RUN INTO SIX 30, THEN WE RUN INTO SIX 30.
I NEED A MOTION, A MOTION THAT WE START THE NEXT MEETING AT 5:00 PM SECOND WORK SESSION.
AND COUNSEL, IF YOU GET, UH, ALSO IN THAT MOTION, UH, NOTE THAT IT WILL BE AMENDING RESOLUTION 3 1 1 1, UH, SO THAT IN THAT RESOLUTION WE HAD ALREADY PREVIOUSLY, UH, IDENTIFIED THE START TIME AS 4:00 PM OKAY.
WE, WE, WE AMEND RESOLUTION 3, 1 1 1.
TO START THE NEXT WORK SESSION ON AUGUST 27TH AT 5:00 PM SECOND.
HAVING EXHAUSTED EVERYTHING ON THIS AGENDA, I NOW ADJOURN THIS MEETING AT 5:59 PM WE WILL START COUNSEL AT SIX 30.