[00:00:02] GOOD. 8:05. [1. Call to Order] SO ON CST, WHO IS IT THAT SAID CST WAS THAT YOU DID NOT CENTRAL STANDARD TIME? SO 8:05 WOULD ACTUALLY BE A LITTLE EARLIER TO BE CENTRAL STANDARD TIME UNTIL COLE AND THEN WE STRUGGLE TO EVER START AT 8 O'CLOCK. SO HOW WELL DO THESE PICK UP? LIKE DO YOU HAVE TO BE RIGHT ON IT OR CAN WE BE A LITTLE FURTHER AWAY? YOU HAVE TO BE ABOUT RIGHT THERE. OKAY. WELL, WE'D LIKE TO THANK THE MEMBERS OF THE COMMUNITY FOR COMING TO OUR BUDGET WORKSHOP. WE ANTICIPATE TO GET A LOT OF WORK DONE THROUGH THIS BUDGET WORKSHOP. BUT THEN IF WE DON'T FINISH, THAT'S OKAY. WE'LL HAVE A COUNCIL MEETING NEXT WEEK, AND THEN THE WEEK AFTER THAT WE'LL COME BACK AND WE'LL HAVE ANOTHER BUDGET WORKSHOP WITH COUNCIL AND WE'LL JUST CONTINUE TO WORK THROUGH THIS ONE DEPARTMENT AT A TIME, GOING THROUGH IT, MAKING SURE THAT WE'VE GOT ALL THE INFORMATION TO MAKE GOOD DECISIONS SO THAT AS WE WORK FORWARD THROUGHOUT OUR, YOU KNOW, OUR NEXT YEAR, WE CAN REFLECT BACK ON ALL THE HARD WORK THAT WE PUT IN HERE. SO WE APPRECIATE MEMBERS OF THE COMMUNITY FOR BEING HERE THIS MORNING AND HOPE YOU GUYS WILL ENGAGE WITH US. AND THEN WE ARE GOING TO WE'RE GOING TO ASK GOOD QUESTIONS. WE'RE GOING TO LISTEN, WE'RE GOING TO LEARN, AND THEN WE WON'T MAKE DECISIONS HERE TODAY. SO ANYTHING THAT'S SAID HERE TODAY IS JUST, YOU KNOW, FURTHER EVALUATION. AND THEN WE WILL HAVE ALL OF OUR DECISIONS MADE, WE BELIEVE FIRST WEEK IN SEPTEMBER, SOMEWHERE IN THERE, SO THAT STAFF HAS AN ADEQUATE AMOUNT OF TIME TO MAKE ANY LAST MINUTE CHANGES BEFORE WE MEET OUR DUE DATE. SO I WOULD LIKE TO OPEN US UP WITH PRAYER HERE REAL QUICK AND THEN I'LL PROBABLY JUST TURN THE MEETING OVER TO MISS LAURA AND LET HER KIND OF DRIVE FOR A MINUTE. SO IF YOU GUYS WOULD PRAY WITH ME. FATHER GOD, WE THANK YOU FOR A GREAT DAY. WE THANK YOU FOR THE ABILITY TO JUST COME IN HERE AND SIT AT EASE AND ENJOY THE CIVICS OF THIS AND HOW WE GET TO VOLUNTEER AND WORK FOR OUR COMMUNITY. WE THANK YOU FOR THE PEOPLE THAT YOU'VE GOT IN THIS ROOM AND ALL THE TALENT, ALL THE KNOWLEDGE AND THE WISDOM THAT'S HERE. WE PRAY FOR STRENGTH, COURAGE, WISDOM AND DISCERNMENT AS WE GO THROUGH THIS BUDGET BOOK, I ASK FOR JUST GRACE AND MERCY FROM YOU ON THIS AS WE'RE ALL JUST TRYING TO DO THE BEST WE CAN WITH WHAT WE HAVE. WE WOULD ASK THAT YOU WOULD GUIDE OUR CONVERSATIONS, THAT ANYTHING THAT WE WOULD SAY WOULD WASH AWAY LIKE WATER AND ANYTHING THAT'S TRUTH AND IN LINE WITH YOUR WORD WOULD BE SOMETHING THAT RESONATES. AND SO WE ASK THAT YOU'D HAVE YOUR HAND ON THIS MEETING, YOU'D BLESS OUR CONVERSATION, YOU'D GIVE US ENERGY TODAY TO STAY FOCUSED AND TO WORK AS UNTO YOU THROUGHOUT THIS BUDGET PROCESS. IT'S IN JESUS NAME THAT WE PRAY. AMEN. AMEN. OKAY, MISS LAURA, IT'S YOU. ALL RIGHT. GOOD MORNING, MAYOR AND COUNCIL. A COUPLE OF QUICK THINGS, JUST AS A REMINDER. SO WE ARE BROADCASTING THIS BUDGET REVIEW SESSION. SO AS WE'RE HERE IN THIS ROOM, EVERYTHING IS BEING LIVE BROADCASTED. SO THOSE THAT ARE WATCHING REMOTELY CAN HEAR. MAKE SURE THAT YOU'RE KIND OF USING THE MICS AS MUCH AS POSSIBLE. IF WE LOSE POWER ON THEM, WE WILL GET THEM SWAPPED OUT. I THINK AT LUNCH TIME WE'LL SWAP THEM OUT AS WELL. SO WE HAVE A VERY TENTATIVE SCHEDULE OF THINGS TO COVER TODAY. WE WANTED TO START OFF, I THINK JUST GOING STRAIGHT INTO EXECUTIVE SESSION. THERE WAS A SESSION POSTED. IF YOU'RE GOOD WITH THAT MAYOR, WE'LL HAVE BRIAN. WE CAN HAVE BRIAN READ US IN HERE IN JUST A SECOND. AND THEN AFTER THAT, WE'RE GOING TO COVER PROBABLY ONE DEPARTMENT AND THEN TALK PROPERTY TAXES. SO WE HAVE FINAL NUMBERS AND A LOT OF INFORMATION TO GO OVER RELATED TO PROPERTY TAXES. AND SO THAT'S KIND OF HOW WE'RE GOING TO KICK OFF THE MORNING, IF THAT WORKS OUT OKAY WITH YOU GUYS, I'LL FOLLOW YOUR LEAD. OKAY, PERFECT. SO WITH THAT, DO YOU WANT TO GO AHEAD AND HAVE BRIAN READ US IF YOU WOULD? [2. Executive Session] YEAH, OKAY. BRIAN, DO YOU MIND READING US IN? NOT AT ALL. PURSUANT TO THE TEXAS OPEN MEETINGS ACT CLOSED SESSION, THE AMARILLO CITY COUNCIL WAS ANNOUNCED ON AUGUST THE 9TH AT 8:08 P.M. UNDER THE FOLLOWING AUTHORITY SECTION 551.07 TO DISCUSS THE PURCHASE EXCHANGE, LEASE, SALE OR VALUE OF REAL PROPERTY. THAT PUBLIC DISCUSSION WOULD NOT BE IN THE BEST INTERESTS OF THE CITY. OKAY, WE'LL BE BACK SHORTLY. OKAY. OKAY, SO WE ARE BACK FROM EXECUTIVE SESSION AND I BELIEVE. [00:05:01] OH, THAT IS MY CHERRY GLAZE. THANK YOU, MR. CITY MANAGER. THAT'S A VERY IMPORTANT THING. SABOTAGING. I LOVE IT. DONUT STOP, CHERRY GLAZE. I DON'T THINK YOU CAN GO WRONG. MISS LAURA IF YOU'LL TAKE US BACK IN AND YOU'RE DRIVING HERE FOR A MINUTE. OKAY, SOUNDS GREAT. SO WE ARE GOING TO START TODAY COVERING THE CIVIC CENTER BUDGET. [3. City Council Budget Workshop] SO I THINK WE HAVE FOLKS HERE, IF YOU WANT TO JUST COME SIT UP THIS WAY AND WE MIGHT GET FLOYD. DO YOU MIND SHARING YOUR MICROPHONE WITH. THERE WE GO. THANK YOU. YEAH. IT WON'T PICK UP ON THE BROADCASTING. YEAH. OKAY, SO IN YOUR BOOKS, IF YOU'LL TURN TO PAGE 357, THAT'S GOING TO START US OFF. OKAY. SO 357 IS KIND OF THE START OF OUR LEISURE SERVICES SECTION AND THIS IS OUR CIVIC CENTER FUNDS. AND AS WE'VE TALKED ABOUT THE LAST COUPLE OF WEEKS, CIVIC CENTER DOES CREATE REVENUE. THEY DO OPERATE AT A NET OPERATING LOSS ANNUALLY. AND SO THE NET LOSS IS SUBSIDIZED WITH HOTEL OCCUPANCY TAX DOLLARS. SO ONLY THOSE TAX DOLLARS THAT ARE SPENT BY PEOPLE STAYING IN OUR LOCAL HOTELS. SO THE HOTEL OCCUPANCY TAX DOLLARS FIRST GO TO PAY DEBT SERVICE FOR HODGETOWN DEBT SERVICE FOR THE PARKING GARAGE. THEN IT GOES TO A PORTION, GOES TO THE CONVENTION AND VISITORS BUREAU TO PROMOTE TOURISM IN OUR COMMUNITY. A PORTION OF IT GOES TO COVER THE NET OPERATING LOSS AT THE CIVIC CENTER AND THEN ANY REMAINING AMOUNTS, IF THERE ARE ANY, GOES TOWARDS ANY KIND OF REPAIRS OR CAPITAL IMPROVEMENTS AT THE CIVIC CENTER. SO I WILL I THINK I'LL LET BO MAYBE HIT A COUPLE OF HIGH POINTS AND THEN OR IF WE COULD ACTUALLY JUST REAL BRIEFLY TALK ABOUT THE OVERALL SUBSIDY THAT WE'RE ANTICIPATING. SO AFTER AND THEN I'LL KIND OF LET BO KIND OF WALK US THROUGH SOME OF THIS AS WELL. SO WHEN WE LOOK AT OUR PROJECTIONS FOR THE CURRENT YEAR, KIND OF WHAT HAS BEEN SPENT UP TO THIS POINT, WHAT WERE PROJECTED TO SPEND FOR THE REST OF THE YEAR, AND THEN THE ANTICIPATED REVENUES THAT WE'VE ALREADY COLLECTED AND WE WILL COLLECT THROUGH THE END OF THE YEAR. WHAT WE'RE LOOKING AT RIGHT NOW FOR THE CIVIC CENTER IN TOTAL WOULD BE A NET OPERATING LOSS OF ABOUT 1.7 MILLION IN THE CURRENT YEAR. WE NORMALLY KIND OF LIVE IN THE RANGE OF ABOUT A MILLION AND A HALF TO $2 MILLION DOLLARS IN THAT NET OPERATING LOSS ANNUALLY. OBVIOUSLY THE COVID YEAR AND THE YEAR COMING OUT OF IT, IT WAS MUCH CLOSER OR ACTUALLY I THINK IT WAS A LITTLE ABOVE THAT $2 MILLION DOLLAR MARK. AND BUT SO THIS YEAR WE ARE RIGHT IN THAT RANGE. NOW THERE ARE SOME CONTINUED GROWTH THAT WE'RE SEEING IN EXPENDITURES. WE HAVE LOST SOME KEY SHOWS, I THINK, INTO THE NEXT YEAR. AND WHAT WE ARE ANTICIPATING AS THE BUDGET SITS HERE IN YOUR BOOK, WHAT WE'RE LOOKING AT IS THAT NET LOSS INTO NEXT YEAR IS GROWING BY ALMOST $1 MILLION DOLLARS. SO WE ARE GOING TO BE CLOSER TO ABOUT A $2.7 MILLION DOLLAR NET OPERATING LOSS OVER AT THE CIVIC CENTER. AND WE ARE SQUEEZING EVERY LAST BIT OUT OF THE AVAILABLE HOTEL OCCUPANCY TAXES THAT WE'RE ANTICIPATING TO COLLECT NEXT YEAR. THE PIECE THAT COMES TO THE CITY FOR THAT TO COVER THAT SUBSIDY, IT LOOKS LIKE WE'RE GOING TO SQUEEZE EVERY SINGLE LAST PIECE OF IT. THERE WILL NOT BE ANYTHING LEFT TO COVER CAPITAL OR REPAIRS OVER AT THE CIVIC CENTER. FORTUNATELY, WE DO HAVE ONE LARGE PROJECT THAT IS BUDGETED AT, I THINK IT WAS $615,000 AND I'LL LET BO KIND OF GO OVER THAT. BUT WE ARE ANTICIPATING HAVING THE VENUE DISTRICT, THE AMARILLO, POTTER EVENTS VENUE DISTRICT, THEY COLLECT A SEPARATE 2% HOTEL OCCUPANCY TAX THAT DOES NOT COME TO THE CITY. IT ONLY CAN SUPPORT ITEMS OVER AT THE CIVIC CENTER AND ITEMS OUT AT THE TRI STATE FAIRGROUNDS GROUNDS RELATED TO THE AMARILLO NATIONAL CENTER THAT WAS VOTED ON IN THE LATE 90S BY OUR CITIZENS TO ADD THE 2% HOTEL OCCUPANCY TAX AND TO ADD THESE TWO PROJECTS TO THE NORTH END OF THE CIVIC CENTER AND THE AMARILLO NATIONAL CENTER OUT AT THE TRI STATE FAIRGROUNDS. BECAUSE OF THAT, THAT RESTRICTED 2% HOTEL OCCUPANCY TAX DOLLARS CAN GO TO PORTIONS OF IT, GO TO FUND PROJECTS OUT AT THE TRI STATE FAIRGROUNDS AND OVER AT THE CIVIC CENTER. [00:10:02] SO BO HAS PROPOSED A CAPITAL PROJECT. AND IF YOU ALL WANT, YOU CAN FLIP IN YOUR BOOKS BACK TO PAGE. IF YOU'LL GO TO PAGE 829 IN YOUR BOOK. SO BACK IN THE CAPITAL SECTION. YOU'LL SEE THERE IS ONE PROJECT RIGHT ON THE MIDDLE OF YOUR PAGE UNDER THERE'S A CIVIC CENTER SECTION AND THERE IS A PROJECT FOR $615,000 FOR HOCKEY FOOTBALL IMPROVEMENTS. AND AGAIN, THAT IS ANTICIPATED TO BE FUNDED BY THE VENUE DISTRICT. WE'LL BE TAKING THAT TO THEIR BOARD LATER THIS MONTH. AND THEN ONCE THEY APPROVE THAT BUDGET, IT'LL COME BACK TO YOU ALL TO APPROVE AND IT WILL GO TO POTTER COUNTY COMMISSIONERS TO APPROVE AS WELL. SO, BO, DO YOU WANT TO GIVE US MAYBE A LITTLE INSIGHT TO THAT PROJECT AND THEN WE CAN GO BACK AND KIND OF TALK ABOUT OPERATIONS AS WELL? YOU BET THAT THAT PROJECT'S BEEN ON THE BOOKS FOR A NUMBER OF YEARS. IT WAS SET UP SO THAT WE COULD EVENTUALLY FUND SOME NEW HOCKEY DASHER WALL SYSTEM FOR THE COLISEUM AND ALSO REPLACE FOOTBALL TURF OR ANYTHING ELSE RELATED TO SPORTS THAT'S NEEDED. OUR COLISEUM FLOOR HAS LASTED FOR ABOUT 28 YEARS WITH HIS CURRENT ICE BRINE SYSTEM AND SO ON. AND THAT PROJECT IS CURRENTLY ON THE BOOKS TO REPLACE. AND ALL THREE OF THOSE PROJECTS KIND OF ARE MARRIED TOGETHER AND ARE ANTICIPATED FOR THIS NEXT SUMMER. OF COURSE, FOR US TO LOOK AT A PROJECT OF THAT SCOPE AND MAGNITUDE TAKING UP A VERY IMPORTANT SPACE IN OUR FACILITY. YOU'VE GOT TO PLAN THAT FAR ENOUGH AHEAD OF TIME THAT NOT ONLY CAN YOU GET A GOOD BUDGETED NUMBER FOR THAT, BUT YOU'RE NOT ADVERSELY AFFECTING THE BUSINESS ACTIVITY THAT COULD GO ON IN THAT SPACE. SO WE DO HAVE DATES HELD FOR NEXT SUMMER, SUMMER OF 2024, IN WHICH THAT PROJECT IS ANTICIPATED TO TAKE PLACE. OKAY. SO WITH THAT, SORRY TO HAVE YOU FLIPPING BACK AND FORTH IN YOUR BOOKS, BUT BACK ON PAGE 357 WALKS YOU THROUGH. WE HAVE DIFFERENT AREAS. THERE ARE BUSINESS UNITS FOR THE CIVIC CENTER BASED ON KIND OF HOW THEIR OPERATIONS ARE STRUCTURED. WE DO HAVE A NEW ONE THIS YEAR BECAUSE AS YOU KNOW, WE HAVE CONSTRUCTED THE NEW SANTA FE PAVILION AND WE ARE GEARING UP FOR THERE'S ALREADY ACTIVITY THAT GOING ON IN THAT AREA, BUT GEARING UP FOR MORE ACTIVITY THIS YEAR. AND SO THE OTHER ITEM YOU ALL PROBABLY WANT TO FLIP BACK AND FORTH WITH, DO YOU ALL STILL HAVE HOPEFULLY YOUR HANDOUT FROM A COUPLE OF WEEKS AGO THAT HAD THE SUPPLEMENTAL REQUESTS? HOPEFULLY YOU HAVE THAT TUCKED INTO YOUR BOOK SOMEWHERE. BO CAN ALSO KIND OF WALK YOU THROUGH. THERE'S A FEW ITEMS THAT WERE REQUESTED RELATED TO CIVIC CENTER, AND AGAIN, THIS WAS JUST KIND OF AS RECOMMENDED TO BALANCE A BUDGET. DID YOU FIND IT? OKAY, SO IF YOU START ON PAGE TWO OF SEVEN OF THAT REPORT, KIND OF IN THE MIDDLE, THERE STARTS YOUR CIVIC CENTER. THERE'S SEVERAL ITEMS KIND OF REPLACING, YOU KNOW, TABLE SKIRTS, USHER VESTS, VARIOUS THINGS. AS CITY MANAGEMENT REVIEWED THIS, WE RECOMMENDED JUST LEAVING WHAT WAS REQUESTED IN OTHER THAN CUTTING BACK ON A COUPLE OF ADULT CHANGING STATIONS IN SOME RESTROOMS AND JUST KIND OF SEEING HOW THOSE PROJECTS PROGRESS. AND AGAIN, THIS WAS JUST AS A RECOMMENDATION TO BALANCE THE OVERALL BUDGET FOR THE CITY. SO IF YOU HAVE QUESTIONS ON ANY OF THOSE ITEMS, I'M SURE BO COULD CERTAINLY TALK THROUGH THOSE WITH YOU GUYS AS WELL. THERE'S A FEW ITEMS MAYBE FOR THE PAVILION THAT BO MAY WANT TO COVER AS WELL ON THAT. AND THEN BO, ANYTHING OF IMPORTANCE KIND OF THAT YOU'RE SEEING THIS PLANNING FOR THIS UPCOMING YEAR OR. WELL, TYPICALLY OUR SUPPLEMENTAL NON PERSONNEL REQUEST THAT WE DO ARE TYPICALLY ITEMS THAT ARE NEEDING REPLACEMENT OR THEY COULD BE NEW PURCHASES OF A PRODUCT OR AN ITEM THAT BENEFITS OUR STAFF IN BEING ABLE TO PERFORM THE FUNCTIONS THAT WE HAVE TO AT THE CIVIC CENTER. TYPICALLY, OUR SUPPLEMENTAL REQUEST WILL RANGE ANYWHERE FROM THIS IS A LOW END NUMBER HERE OF THE $89,000, THAT'S WHAT I'VE GOT ON MY LIST, THE $89,000 FIGURE UP TO ABOUT $130,000. THAT'S TYPICAL REQUEST ANNUALLY, WITH AS MANY PEOPLE AS WE HAVE RUN THROUGH OUR FACILITIES AND USE OUR EQUIPMENT AND USE OUR SERVICES YEAR IN AND YEAR OUT STUFF WEARS OUT. [00:15:04] WE JUST HAVE TO REPLACE IT OR UPGRADE IT OR UPDATE IT OR TRY TO ENHANCE THE SERVICE THAT WE CAN OFFER. THAT'S WHAT OUR SUPPLEMENTAL REQUEST IS DOING. QUESTIONS FROM COUNCIL? YEAH. IS THERE SOMEWHERE IN THE BUDGET WHERE THIS HOT TAX ALLOCATION FOR THE CIVIC CENTER IS LISTED OUT? SO I THINK ON HERE. WHAT? LET'S SEE HERE. OKAY, SO THERE IS A PIECE HERE ON PAGE 357. YOU'RE SEEING A PORTION OF IT THERE. THE PIECE THAT'S NOT INCLUDED ON THAT IS THE CITY HAS AN OVERALL ADMIN FEE THAT IS CHARGED TO THE CIVIC CENTER, AND THAT AGAIN WORKS. I THINK WE'VE TALKED THROUGH THIS ABOUT AS WE CHARGE OUT TO THE VARIOUS ENTERPRISE FUNDS AND INTERNAL SERVICE FUNDS AND ESPECIALLY THE GRANT FUNDS, WE CHARGE ADMIN FEES AND THAT'S FOR EVERYTHING FROM DOING THE ACCOUNTING WORK, PAYROLL WORK, HR WORK, PURCHASING, ALL THOSE THINGS. ALSO A BIG PORTION OF ADDITIONAL COSTS THAT WE PUT IN AND IT IS BILLED OUT AS IT'S INCURRED, IS RELATED TO FACILITIES DOING WORK OVER AT THE CIVIC CENTER. AND SO WE COME THROUGH KIND OF WE ESTIMATE IT BASED ON PRIOR YEARS EXPERIENCES AND BUT WE DON'T CHARGE IT OUT UNTIL IT ACTUALLY OCCURS. AND SO THAT IS THE THE BIGGEST PIECE THAT YOU'RE SEEING ON PAGE 357 IS THE TRUE NET LOSS. BUT THEN THERE'S ADMIN FEES THAT WILL BE ALLOCATED BASED ON ACTUAL SPEND. WELL, I GUESS WHAT TWO THINGS I THINK WOULD BE HELPFUL TIME. OKAY. MAYBE JUST THE LAST FIVE YEARS, WHAT OUR TREND YOU KNOW WHAT OUR FORECAST IS? AND THEN ALSO, IS THERE ANYWHERE IN THE BUDGET THAT HAS I KNOW WE HAVE A THING WHERE IT SAYS HOW MUCH IS THERE SOMEWHERE WHERE IT JUST LISTS OUT, OKAY, HERE'S HOW MUCH TAX GOES TO CIVIC CENTER AND HERE'S HOW MUCH TO DEBT SERVICE, HERE'S HOW MUCH TO CVB. I MEAN, IS THERE A NUMBER TO KIND OF LOOK TO SEE JUST HOW THAT TAX IS DISTRIBUTED? BECAUSE I KNOW I'M SURE IT'S PROBABLY IN THE BUDGET INDIVIDUALLY. IT IS INDIVIDUALLY. LET ME GET YOU ALL AT A BREAK. I WILL PRINT OFF A REPORT THAT CAN KIND OF SHOW YOU THE BREAKDOWN OF THAT. WOULD THAT HELP? YES. OKAY. WHAT WE'RE SEEING IS, YOU KNOW, YOUR DEBT SERVICE IS CONSISTENT. WE KNOW WHAT THAT'S GOING TO BE. BUT THE CIVIC CENTER IS THE AREA WHERE WE'RE SEEING WE'RE HAVING TO PAY FOR MORE INCREASED COST. IF IT'S OUTPACING THE INCREASE IN HOT TAX THAT SOMEONE ELSE IS HAVING TO DO WITH LESS, WHICH I GUESS IS GENERALLY THE CVB. REPAIRS OVER AT THE CIVIC CENTER. WE HAVE KEPT THE ALLOCATION TO THE CVB THE SAME AS WHAT WE HAVE FOR HISTORICALLY. SO CVB HISTORICALLY AND STILL AT THIS POINT IS GETTING ESSENTIALLY HALF OF THE HOT TAX THAT'S COMING TO THE CITY IS ALLOCATED, HALF OF IT GOES. OKAY, SO THERE'S 7% THAT'S COLLECTED IN TOTAL HOT TAXES. OF THAT 3% GOES TO FUND CVB'S OPERATING BUDGET FOR TOURISM EFFORTS. HALF A PERCENT. SO THE OTHER PART OF THE THREE AND ONE HALF OF THE HALF, THE HALF A PERCENT GOES AS THE CVB CAN USE THAT TO INCENTIVIZE EVENTS THAT ARE COMING HERE IN AMARILLO TO HELP THEM CHOOSE AMARILLO AS THEIR AS THEIR SPOT FOR THEIR TOURIST EFFORTS. SO THAT COULD BE, YOU KNOW, IF THEY'RE STAYING HERE AND THEY NEED TO TAKE A BUS RIDE TO AND FROM THE FACILITY, THEY MAY PAY FOR SOME OF THAT STUFF. SO ALL OF THAT WE HAVE KEPT THAT HISTORICALLY THE SAME AMOUNT. THE ONLY DIFFERENCE RELATED TO CVB IS ONCE WE STARTED ISSUING DEBT TO PAY FOR HODGETOWN AND FOR THE PARKING GARAGE, THEY AGREED TO PAY A PORTION OF WHAT WE WERE FUNDING THEM FOR OPERATIONS TO HELP WITH THE DEBT SERVICE. SO IT KIND OF RAMPED UP OVER THE YEARS AND NOW IT'S AT A FLAT 1.1 MILLION GOING FORWARD. YES. FOR SOME REASON, MY MIC, I THINK, IS NOT WORKING. OH. SO IF YOU WANT TO ONE MORE QUESTION. SURE. WELL, I'LL REPEAT YOUR QUESTION. HOW MANY OPEN POSITIONS DO YOU CURRENTLY HAVE? FOR THE FIRST TIME. PARDON ME. AND THE FIRST TIME IN THE LAST FOUR YEARS, WE ARE ACTUALLY FULLY STAFFED WITH 36 FULL TIME EMPLOYEES AND NINE PART TIME. [00:20:08] AND MY SECOND QUESTION IS, I SEE REVENUES ARE FLAT. SO WE'RE SAYING WE'RE GETTING ABOUT 2.8 MILLION THIS YEAR. BUT MY QUESTION IS WE WERE ABLE TO OPERATE CURRENT REVENUE WITH ABOUT $1.9 MILLION PERSONNEL. WE GOT THE JOB DONE, BUT NOW WE'RE ABOUT $450,000. WE'RE ABOUT $450,000 MORE. MY QUESTION IS, IF REVENUE IS FLAT, WHY DO WE HAVE TO HAVE ADDITIONAL EXPENDITURES ON THE PERSONNEL SERVICES SIDE? THE EXPLANATION FOR THAT COUNCILMAN IS THE FACT THAT WE HAD RAN SO LONG WITH A DEFICIT IN THE NUMBER OF EMPLOYEES WE HAD AND WE WERE HAVING TO SUPPLEMENT STAFFING WITH TEMP LABOR THROUGHOUT JUST TO KEEP THE PLACE CLEAN, GET SET UPS DONE, TEAR DOWNS AND SO ON. I DID APPROACH CITY MANAGEMENT A WHILE BACK STATING THAT WE WERE NOT GETTING ANY APPLICATIONS WHATSOEVER FOR THE MULTITUDE OF OPEN POSITIONS WE HAD, MAINLY IN OUR LOWER LEVEL STAFFING LIKE OUR BUILDING ATTENDANTS. AND I WAS TASKED WITH REACHING OUT TO OTHER FACILITIES LIKE OURS AND DOING A WAGE STUDY TO FIND OUT WHERE WE WERE AT IN RELATION TO OTHER FACILITIES, AND WE WERE GROSSLY UNDERPAYING OUR EMPLOYEES. I WAS ALLOWED TO RAISE THOSE HOURLY RATES UP SLIGHTLY THAT WOULD HOPEFULLY ENCOURAGE APPLICANTS TO COME IN AND FILL OUT APPLICATIONS TO WORK AT OUR FACILITY. I BELIEVE THOSE WAGE RANGES AVERAGED AROUND $2 AN HOUR AND IT MADE ALL THE DIFFERENCE IN THE WORLD FROM GOING TO RECEIVING NO APPLICATIONS FOR OPEN POSITIONS TO NOW RECEIVING MULTITUDES THAT WE COULD ENCOURAGE FOLKS TO APPLY. WE WERE ABLE TO FILL THESE POSITIONS AND RIGHT NOW WE'RE IN THE LOWER 25 PERCENTILE OF OUR INDUSTRY STANDARDS FOR PAY. BUT STILL, IT PUT US IN A COMPETITIVE NATURE TO WHERE WE COULD FILL THESE POSITIONS. ON THE FLIP SIDE OF THAT COIN, I WAS TASKED WITH TRYING TO RAISE OUR REVENUE PROJECTIONS IN WHICH THAT WOULD COVER THAT ADDITIONAL COST AND PERSONNEL. SOME OF THE STEPS THAT I'VE TAKEN IN THAT CASE WE APPLIED AND ACROSS THE BOARD 5% RENTAL RATE INCREASE ON ALL OF OUR SPACE, EVEN TO OUR NONPROFIT PARTNERS, OUR ARTS GROUPS. WE ALSO HAVE INCREASED OUR FACILITY FEES ON TICKETED EVENTS TO WHERE WE'RE BRINGING IN MORE BOX OFFICE REVENUE. THOSE FACILITY FEES ARE APPLIED TO EVERYONE THAT BUYS A TICKET. WELL, AND THEN WHEN DID WE ADD THOSE RAISES? NOW, THOSE RAISES WERE DONE PROBABLY WITHIN THE LAST FIVE MONTHS. OKAY. WELL, AND THEN I GUESS IT'S SAFE TO SO SOME OF THE WAYS WE'RE KEEPING THE REVENUE FLAT IS INCREASES. CORRECT. I GUESS IT'S SAFE TO SAY IT LOOKS LIKE WE'RE PROBABLY GOING TO HAVE FEWER EVENTS NEXT YEAR THAN WE DID THIS YEAR. I MEAN, HOPEFULLY NOT. BUT IF THE TREND IS WE'RE PROBABLY HAVING FEWER EVENTS. WE DON'T ANTICIPATE IT. THEY ALWAYS, ALWAYS EVERY YEAR WHEN I PRODUCE MY BUDGET, I USUALLY KIND OF GO FLAT WITH THE NUMBERS THAT WE HAD LAST YEAR BECAUSE WE'RE JUST SUCH A VOLATILE, EVER CHANGING TYPE OF INDUSTRY. YOU NEVER KNOW WHEN YOU'RE GOING TO GET NEW BUSINESS IN. YOU NEVER KNOW WHEN SOMEBODY IS GOING TO LAY OUT A YEAR OR DECIDE TO DO SOMETHING DIFFERENT AS OPPOSED TO THAT. SURE. BUT I GUESS THE THING IS, THE TREND PROBABLY HAS BEEN FOR A VARIETY OF REASONS. CORRECT. THE EVENTS ARE GOING DOWN FOR WHATEVER REASON. WELL, AGAIN, I JUST WANTED TO ASK ABOUT THAT BECAUSE IT'S AND NOT SAYING THAT WE'RE NOT DOING GREAT THINGS OR, YOU KNOW, OPERATING MORE EFFICIENTLY OR WHATEVER, BUT I'M JUST TRYING TO RECONCILE IN MY MIND WHY DOES IT COST US HALF $1 MILLION MORE TO MAKE THE SAME MONEY? RIGHT. ARE THERE WAYS TO YOU KNOW, BECAUSE WE'RE TRYING TO LOOK AT ANY DEPARTMENT WE CAN ABOUT HOW TO BE MORE EFFICIENTLY AND TO BE ABLE TO DO THAT. SO IT'S KIND OF SAID, WELL, I'M YOU KNOW, I'M INVESTING HALF $1 MILLION DOLLARS, BUT MY REVENUE IS FLAT. IT'S NOT. AND I UNDERSTAND WE HAVE THE ISSUE WITH YOU KNOW, BUT I WOULD THINK PART OF THOSE RAISES ARE IN THIS YEAR'S SPEND. IN OTHER WORDS, IF IT WAS 5 OR 6 MONTHS AGO AND THEN I GUESS SOMEWHERE IN HERE, WE'VE BEEN PAYING FOR CONTRACT SERVICES, LABOR TO BE ABLE TO DO THE CLEANING WHEN WE COULDN'T HAVE EMPLOYEES. YES. [00:25:01] AND SO THAT WOULD BE SHOWING UP ON THAT CONTRACTUAL SERVICES LINE. YES. AND SO I THINK WHAT YOU'RE SEEING IN THE REVISED ESTIMATE IS UNDER STAFFING FOR THE MAJORITY OF THE FIRST PART OF THE YEAR, WHICH IS CREATING ALL OF THOSE SAVINGS. AND THEN SO AND THEN APPLYING THOSE PAY CHANGES IN THE LATTER PART OF THE YEAR GOING FORWARD AND INTO NEXT YEAR. WELL, ONE THING I WOULD JUST AND THEN I'LL YIELD. BUT CONTRACTUAL SERVICES IS STAYING ACTUALLY, IT'S GOING UP. I MEAN, I WOULD JUST BE THINKING THAT IF WE USED A LOT OF CONTRACTUAL SERVICES, NOW WE'RE GOING TO EMPLOYEES THAT CONTRACTUAL SERVICES MAY BE SOMETHING THAT WOULD BE GOING DOWN IN EXPENSE. IF WE'RE NOT HAVING TO PAY THAT AGAIN, UNLESS WE'RE ADDING SOMETHING IN THERE THAT'S NEW OR DIFFERENT. THAT'S ALL I'VE GOT. I AGREE WITH COUNCILMAN.WE HAVE PAYSCALE AND YOUR FULL CREW. I DON'T KNOW WHY CONTRACTUAL SERVICES WOULDN'T BE WAY DOWN TO HALF, AT LEAST HALF OF WHAT YOU'RE ASKING FOR THERE BECAUSE WE SHOULDN'T HAVE ANY MORE CONTRACTUAL SERVICE. WE'VE GOT A FULL CREW. YES AND NO. IT'S NOT A ONE FOR ONE TYPE EXCHANGE AS FAR AS CONTRACTUAL SERVICES WHEN YOU'RE TALKING ABOUT TEMP SERVICES. WE USE A LOT OF TEMP SERVICES EACH YEAR. SOME OF THOSE ARE RELATED TO SPECIFIC TICKETED EVENTS, AND MANY OF THOSE COSTS ARE RECOUPED THROUGH SETTLEMENT WITH THOSE EVENTS AND THEY'RE NOT HITTING OUR BUDGET. THE ONES THAT WOULD TYPICALLY HIT THIS BUDGET WILL BE THOSE IN WHICH WE HAVE TO SUPPLEMENT OUR STAFF TO DO NORMAL TURNS IN BUSINESS. IN WHICH WE WOULD HAVE TO USE SOME TEMP LABOR. BUT YES, THAT WOULD REDUCE TO A CERTAIN DEGREE THERE WITH US BEING FULLY STAFFED. THE WAY I WOULD SEE THIS IS EITHER WE COULD DO AWAY WITH LESS STAFF AND GO BACK TO THE WAY YOU WERE DOING IT OR CUT CONTRACTUAL SERVICE THAT WE DON'T NEED BOTH. I DON'T SEE EITHER WE HIRE PEOPLE TO DO A JOB OR WE USE PART TIME PEOPLE, WHICH BY USING PART TIME, THE CITY COMES WAY AHEAD AT THE END OF THE DAY BECAUSE WE DON'T HAVE TO SUPPLY ALL THE BENEFITS THAT GO WITH THAT. NOW SO I WOULD THINK THAT IF WE RELOOKED AT THIS, THAT WE MIGHT LOOK AT IT IN A DIFFERENT WAY. THAT'S THE ONLY THING I'M GOING TO ASK YOU TO DO. JUST LOOK AT IT. OKAY. I'M THROUGH. LET ME ASK, BO ARE YOU DESCRIBING TO ME AN EVENT THAT LET'S SAY YOU HAVE TWO, FOUR, MAYBE EVEN TEN STAFF POSITIONS FULL, BUT YOU NEED 50 PEOPLE. AND SO THOSE CONTRACTUAL SERVICES PROVIDE THE OTHER 40 IN ADDITION TO THE TEN. SO IT'S NOT IN LIEU OF THE TEN, IT'S IN ADDITION TO. CORRECT. AND IF I MIGHT EXPLAIN TO THE HOURLY RATES THAT WE'RE BEING CHARGED BY, THE TEMP SERVICES NOW HAS EXCEEDED THE HOURLY RATES IN WHICH WE PAY OUR EMPLOYEES. SO TO TAKE A REGULAR FULL TIME STAFF PERSON OFF THE PAYROLL, YOU MIGHT BE SAVING A LITTLE BIT ON THE HEALTH INSURANCE AND THOSE OTHER CHARGES. BUT YOU'RE PAYING MORE NOW FOR A TEMP THAT HAS LITTLE TO NO EXPERIENCE IN OUR BUILDING WITH WHAT WE DO. THEY DON'T UNDERSTAND THE INS AND OUTS AND WHAT THEY HAVE TO DO WHEN THEY COME ON SHIFT. WHEREAS WITH FULL TIME PEOPLE, THEY ARE FULLY TRAINED AND FULLY UNDERSTANDING AS TO WHAT NEEDS TO BE DONE NEXT, WHAT OUR PROCEDURES ARE. SO IS IT AS DIFFERENT AS LIKE MAYBE STAFFING A STORE THAT YOU HAVE LIKE, SAY, RETAIL VERSUS HOSTING AN EVENT LIKE YOU'RE SAYING YOUR EVENT HEAVY, SO YOU RAMP UP STAFF AND THEN YOU RAMP THEM BACK DOWN, YOU KNOW, JUST TO TAKE CARE OF THAT EVENT. WHEN YOU DO A BROADWAY SHOW, TYPICALLY A LABOR CALL WILL BE 40 TO 50 PEOPLE FOR THAT LABOR CALL. NOW, ALL OF THE CHARGES BASED ON THAT SHOW FOR BOTH PRODUCTION, LABOR, PART TIME PRODUCTION, LABOR AND TEMP LABOR THAT YOU WOULD USE TO LOAD THAT SHOW IN AND LOAD THAT SHOW OUT THAT GETS CHARGED TO THAT SHOW. [00:30:01] THE SHOW IS PAYING THOSE FEES. THAT'S NOT HITTING OUR BUDGET. IT'S WHEN WE HAVE TO SAY, AS AN EXAMPLE, THE WRCA EACH YEAR. TYPICALLY THE PERSONNEL THAT WE HAVE TO PROVIDE FOR PRODUCTION AND CERTAIN ASPECTS OF THE WRCA GET CHARGED TO THE WRCA FOR THE SETTLEMENT FOR THAT. BUT THERE'S JUST SUCH AN EXTREMELY LARGE INFLUX OF PEOPLE OVER THAT 4 TO 5 DAYS OF THE RODEO THAT OUR REGULAR STAFF CANNOT KEEP UP WITH THE NORMAL DUTIES AND THEN CLEAN ON A REGULAR BASIS IN BETWEEN THOSE EVENTS TO HAVE IT PREPARED FROM DAY TO DAY TO DAY. SO THOSE ARE SOME OF THOSE EXPENSES THAT WE TAKE ON. OKAY. I APPRECIATE THAT. I GOT A FEW QUESTIONS FOR YOU. CAN YOU GIVE ME THE PROJECTED REVENUES ON THE PAVILION FOR THIS NEXT YEAR? I BELIEVE THAT I'VE GOT THAT DOWN. I JUST DIDN'T SEE THE REVENUES. I SEE WHAT I'M LOOKING AT IN THE FORM OF BUDGET, BUT I'M LOOKING FOR A SEPARATE REVENUE ITEM. 367. HERE. I WOULD LIKE TO SAY THAT THIS IS A VERY LOW EXPECTATION WITH US NOT HAVING HAD EXPERIENCE WITH THE OUTDOOR VENUE LIKE THIS BEFORE. I WAS A LITTLE CONSERVATIVE, BUT I PROJECT, I BELIEVE, 18 EVENTS IN WHICH WE'RE BRINGING IN $61,200 OF REVENUE. THERE WILL BE SOME EXPENSE THERE AS FAR AS JANITORIAL AND OPERATING, PROFESSIONAL SERVICES. WE ARE FINDING OUT THAT THAT 60,000 SQUARE FOOT SPACE DOES TAKE SOME MANPOWER TO CLEAN UP. OKAY. YEAH, I THINK MAYBE I WAS SEEING THAT 61 AND THEN OUR 43. I JUST WASN'T, I GUESS, EXPECTING THAT LOW OF A PROJECTED REVENUE ON, ON THE DEMAND THAT WE HAVE FOR THAT OUT THERE. SO YOU'RE TELLING ME THAT'S PRETTY CONSERVATIVE. I THINK IT'S VERY CONSERVATIVE. TELL ME HOW COMFORTABLE YOU WOULD BE MOVING TO MIDDLE OF THE ROAD PROJECTION OR COULD YOU PROJECT A COUPLE HUNDRED THOUSAND DOLLARS OVER THERE? COULD YOU PROJECT $100,000 OVER THERE? WHAT ARE WE LOOKING AT? I WOULD EASILY SAY PROBABLY BETWEEN 100 TO 150. OKAY. AND THEN LET ME GO BACK TO THREE. AND OF COURSE WE DID NOT ADD ANY PERSONNEL REQUESTS. RIGHT. FOR THE ADDITIONAL SPACE, WHICH IS A BLOCK AWAY. RIGHT. IT DOESN'T SOUND LIKE FAR, BUT NOW WE'RE COVERING 500,000 PLUS SQUARE FEET OF FACILITIES. WITH HOW MANY PEOPLE TOTAL? STILL 36 PEOPLE. 36 TOTAL. 36, I MIGHT CLARIFY, IS ABOUT 18 BUILDING ATTENDANCE STAFF. OKAY. THE ONES THAT DO ALL THE SET UPS AND CLEAN UP. UNDERSTOOD. HOW LONG ON THAT $615,000 PROJECT IN THE CIVIC CENTER FLOOR. HOW LONG WILL THAT TAKE? IT'S ALL ANTICIPATED TO BE DONE WITHIN A SHORT PERIOD OF TIME NEXT SUMMER. DO YOU I MEAN, YOU'RE SAYING 6 TO 8 WEEKS TURNKEY. DO YOU KNOW? PROBABLY EIGHT WEEKS. EIGHT WEEKS. OKAY. SO SHUT DOWN IN THERE FOR EIGHT WEEKS. BUT YOU'VE GOT THAT TIME TO LOGISTICALLY IN BETWEEN SEASONS AND EVENTS. IT LOOKS LIKE IT WILL HIT AFTER OUR TWO JEHOVAH WITNESS CONVENTIONS NEXT SUMMER THAT COME EVERY YEAR. OKAY. WHICH THIS LAST SUMMER WAS THE FIRST SUMMER THEY'VE BEEN THERE SINCE BEFORE COVID. IN ADDITION, WE'RE WORKING VERY DILIGENTLY ON BRINGING IN ANOTHER FOOTBALL TEAM THAT WILL PLAY DURING THE SUMMER. SO, OKAY. YES, MA'AM. YOU HAD SOMETHING? SO A COUPLE OF THINGS I WANTED TO POINT OUT. SORRY. AND I'M KIND OF CIRCLING THIS BACK TO WHAT WE WERE TALKING ABOUT JUST PREVIOUSLY, I THINK WITH COUNCIL MEMBER SIMPSON. IF YOU LOOK ON PAGE 363, I WANTED TO POINT OUT SOMETHING JUST REAL QUICK. THIS IS HIS CIVIC CENTER OPERATIONS. THIS IS WHERE THE BULK OF THE DOLLARS ARE BEING SPENT OPERATIONALLY. A COUPLE THINGS I WANTED TO SHOW. IF YOU LOOK AT THE UP TOWARDS THE TOP OF PAGE 363, LOOK AT THE ELECTRICITY LINE ITEM. IT'S 53,150. THAT NUMBER IS HAS BEEN GROWING TREMENDOUSLY. THAT'S DRIVING COSTS UP. AND THAT'S JUST FOR THE FACT THAT ELECTRICITY RATES ARE CONTINUING TO RISE. AND WE ANTICIPATE THEY WILL CONTINUE TO RISE INTO NEXT YEAR. AND AS FUEL INCREASES, I THINK WE'VE TALKED ABOUT THIS A LITTLE BIT, THERE'S A FUEL FACTOR AND THAT DRIVES UP THOSE ELECTRICITY COSTS AS WELL. THE OTHER THING THAT WE ARE TALKING ABOUT ON THE TEMPORARY LABOR, IF YOU GO DOWN TO THE PROFESSIONAL LINE ITEM UNDER CONTRACTUAL SERVICES, THAT $62,000, DO YOU ALL SEE THAT? OKAY. LOOK AT THE 2021 ACTUAL DO YOU SEE THE 330,000? [00:35:03] I THINK THAT'S WHERE HE WAS SUPPLEMENTING STAFFING SHORTAGES A LOT AND THAT WOULD HAVE BEEN LAST YEAR. OKAY. SO SOME OF THAT FLOWED INTO THE NEW YEAR. AND YOU'LL SEE UNDER THE 2022 REVISED ESTIMATE, HE'S GOT IT FLAT WITH BUDGET AT 125. I THINK HE'S ESTIMATING MAYBE A LITTLE BIT LOW. I PULLED UP ACTUALS THROUGH TODAY. WE'RE AT ABOUT $128,000, SO I THINK THAT'S GOING TO BE HIGHER. AND THEN HE LEFT IT FLAT FOR 125 NEXT YEAR. BUT THAT'S THE LINE ITEM THAT'S FLUCTUATING IS HE'S SHORT ON STAFFING AND YOU CAN REALLY SEE THE TREND FROM LAST YEAR AND THEN IT DROPPING DOWN AS HE'S BEEN FILLING THOSE POSITIONS. SO I THINK HOPEFULLY THAT KIND OF SHOWS YOU WHERE THOSE DOLLARS ARE TRENDING THROUGH. AND THEN THE OTHER BIG PIECE ON THAT PAGE 363, IF YOU GO DOWN TO OTHER CHARGES UNDER THE INSURANCE AND BONDS LINE ITEM, THAT'S THE INSURANCE EXPENSE. YOU SEE THAT? $200,000 MORE? YES, THAT'S CORRECT. IT'S BIG. SO THAT'S THE CHALLENGE, I THINK, FROM THE EXPENSE SIDE. SO IF I COULD, I GAVE YOU ALL A HANDOUT. DID YOU ALL JUST GET A PIECE OF PAPER THAT CAME BY? IF YOU WANT TO PULL THAT OUT REAL QUICK? AND DID WE HAVE ANY EXTRA COPIES? DO YOU MIND HANDING BO ONE, PLEASE? THAT WOULD BE GREAT. SO AND I STARTED I KIND OF WENT BACKWARDS. SO I STARTED WITH OUR PROJECTIONS FOR NEXT YEAR AND THEN BELOW IT OUR PROJECTIONS FOR THE CURRENT YEAR. SO THESE ARE OUR ESTIMATED HOT COLLECTIONS. SO HOTEL OCCUPANCY TAX COLLECTIONS, WE'RE ESTIMATING JUST UNDER 9.3 MILLION IN HOTEL OCCUPANCY TAX COLLECTIONS NEXT YEAR. OF THAT, WE'RE ESTIMATING. QUICK QUESTION, IS THERE ANY WAY WE CAN PUT THIS ON THE SCREEN SO PEOPLE IN THE AUDIENCE CAN SEE THIS AS WELL? BECAUSE I THINK IT JUST GIVES YOU A LITTLE BIT MORE DETAIL ON THAT. STEPHANIE. I DON'T WANT TO HOLD YOU UP, BUT GO AHEAD AND THEN MAYBE. YEAH. GIVE ME JUST A SECOND. LET ME. SO. COUNCILMAN. I APPRECIATE YOU GETTING THAT UP THERE. THAT'LL HELP US. DO YOU WANT TO WAIT UNTIL THAT'S UP THERE? BECAUSE I HAVE ANOTHER ITEM I COULD ASK YOU REAL QUICK. YEAH. GO RIGHT AHEAD AND WE'LL CIRCLE RIGHT BACK TO THIS. THANK YOU. OKAY. LET ME. ANYTHING. AND WE'RE GOING THROUGH THIS NOT ONLY FOR THE AUDIENCE HERE, BUT FOR THOSE AT HOME BUT AS MUCH AS WE CAN SHOW ON THE SCREEN, I THINK THAT WOULD HELP OTHERS SEE WHAT WE'RE SEEING IS LET ME GO BACK TO ONE THING REAL QUICK. THAT'S KIND OF AN OVERVIEW THAT WILL HELP US. SO I'VE TAKEN A FEW TEXTS OF JUST PEOPLE FOLLOWING ALONG IN THEIR BUDGET BOOK. SO WE HAD SAID A LOSS OF 1.7 MILLION. IF YOU GO TO 357, WHAT YOU HAVE IS YOU HAVE YOUR TOTAL EXPENSES UP HERE AT $5 MILLION. YOU HAVE BELOW THAT 2.86 TOTAL DEPARTMENTAL REVENUES. AM I CORRECT IN UNDERSTANDING THAT 2.86 IS EVERYTHING THAT'S COMING IN THROUGH THE PAVILION PROJECTION, CIVIC CENTER, ALL OF IT, GLOBE NEWS, EVERYTHING THAT 2.8 GROSS REVENUES? YES, THAT IS CORRECT. AND THEN TOTAL COVERED THROUGH GENERAL REVENUES IS THE QUESTION I'M GETTING OF WHERE DOES THAT 2.1 MILLION COME FROM? SO THAT 2.1 MILLION IS IN BY GENERAL REVENUES. THE HOTEL OCCUPANCY TAX COLLECTIONS ARE CONSIDERED PART OF OUR GENERAL REVENUES THAT IS BEING COVERED BY. SO IT'S JUST THE FORMULA OF TAKING THE 2.866 MINUS THE $5,044,000 THERE ON THAT PAGE. SO THAT'S THE NET AMOUNT. NOW, I KNOW I'M GOING OVER WITH YOU GUYS HERE IN JUST A SECOND. IT'S UP ON THE SCREEN AS WELL. THERE'S AN ADDITIONAL AMOUNT AND THAT'S THE ADMIN PIECE AS WELL. WE HAVE NOT HISTORICALLY CHARGED A DIRECT LINE IN THERE BECAUSE IT'S A GENERAL FUND CHARGE TO A GENERAL FUND CHARGE. BUT BECAUSE THE CIVIC CENTER WE HAVE HISTORICALLY COVERED ANY NET LOSS, ANY OF THEIR EXPENSES EITHER HAVE TO COME FROM THEIR GENERAL OPERATING MONEY OR FROM HOTEL OCCUPANCY TAXES. IF WE DON'T CHARGE ANY KIND OF AN ADMIN FEE FOR THE WORK THAT'S DONE BY OUR FACILITIES DEPARTMENT OVER THERE, THE WORK DONE BY OUR ACCOUNTING DEPARTMENT, OUR PURCHASING DEPARTMENT, PAYROLL, HR, ALL THOSE THINGS, THEN THOSE COSTS THAT THE CITY IS INCURRING, IT WOULD ESSENTIALLY ALMOST BE COVERED THROUGH PROPERTY TAXES OR SALES TAXES. SO WE ADD ON AN AMOUNT TO HIS EXPENSES HERE THAT ARE THOSE ADMIN FEES. AND THAT'S WHAT BRINGS YOU UP IF YOU LOOK ON YOUR SCREEN OR IF YOU WANT TO LOOK ON YOUR HANDOUTS HERE, IF YOU LOOK DOWN TO THE LINE THAT SAYS CIVIC CENTER SUBSIDY FOR FISCAL YEAR 23-24, WE'RE SHOWING JUST BELOW 2.7 MILLION. THE DIFFERENCE BETWEEN THAT AND WHAT'S ON YOUR PAGE 357 IS THOSE ADMIN FEES AND THOSE ANTICIPATED FACILITIES COST THAT WILL BE CHARGED OVER THERE. AND AGAIN, I THINK IT'S A LITTLE HARD BECAUSE YOU'RE NOT SEEING A LINE ITEM IN THERE. [00:40:02] AND THE REASON FOR THAT IS BECAUSE CIVIC CENTER'S PART OF GENERAL FUND AND ALL THE COSTS ARE CONTAINED INSIDE THE GENERAL FUND. THAT IS SOMETHING WE COULD CHANGE AND SHOW LIKE A BUDGETED LINE ITEM FOR THAT GOING FORWARD. WE JUST HISTORICALLY HAVE ESTIMATED WHAT IT WILL BE IN THE TRUE IT UP AS THE ACTUAL COSTS COME IN. SO WHAT YOU'RE SAYING IS FROM THE LOSS THAT YOU'RE PROJECTING, A 1.7 MILLION TO THE 2.17? YES. THAT DIFFERENCE IS THE AMOUNT THAT YOU'RE ABLE TO BILL TO FOR ADMIN. YES. IT'S JUST NOT BEING REFLECTED HERE. SO. THAT'S CORRECT. AND I KNOW IT'S STATED DIFFERENTLY. SO LIKE WE DON'T NECESSARILY HAVE A TOTAL REVENUE LINE. WE HAVE A REQUESTED BUDGET LINE, YOU KNOW. SO LIKE. I THINK THAT PART IS A LITTLE CONFUSING. I CAN GET THAT I THINK WHAT THEY'RE DOING, SOME OF THE CITIZENS THAT ARE FOLLOWING ALONG, THEY'RE TAKING 2.8 MINUS 2.1 AND TRYING TO NET THAT OUT AS THE TOTAL LOSS. WHAT YOU'RE SAYING IS. SO WE'RE GOING TO COVER THE 2.1 WITH HOTEL OCCUPANCY TAXES, AND THEN WE'RE GOING TO ALSO RECOUP FROM HOTEL OCCUPANCY TAXES ANY CHARGES THAT FACILITIES INCURS DOING WORK OVER AT THE CIVIC CENTER NEXT YEAR AND THE ALSO THE OVERALL ADMIN FEES. SO. SO THE TOTAL IS THE 2.7, NOT THE 2.1. SO YOU'RE ACTUALLY TAKING 2.7 OUT OF HOT TAX. YES. PUTTING IT ALL OVER TO CIVIC CENTER. YES. AND YOUR LINE ITEM 2.1 ON THIS PARTICULAR BUDGET. YES. BUT THEN YOU'VE TRUED IT UP IN THE OVERALL BUDGET BECAUSE IT'S ALL GENERAL FUND. THAT IS CORRECT. THAT IS CORRECT. ALL RIGHT. SO THAT PART HOPEFULLY IS A LITTLE BIT BETTER FOR ANYONE WHO'S TRYING TO UNDERSTAND THE MATH ON THAT. SO THE 2.7 CIVIC CENTER SUBSIDY, GIVE US THAT NOW ON YOUR HOT SUMMARY. YES. AND IF YOU WOULD, EXPLAIN A LITTLE BIT MORE ON THE 7% TOTAL. SO TOTAL OF ALL OF THE 7% IS $9.3 MILLION DOLLARS PROJECTED? YES. THAT IS CORRECT. AND THEN THE FIRST THING THAT WE TAKE OUT IS THERE IS AN AGREEMENT WITH THE CONVENTION HOTEL THAT THE HOT TAXES ARE REBATED FOR 20 YEARS BACK TO THEM. SO WE'RE STILL WITHIN THAT 20 YEAR TIME PERIOD. AND I'M LOOKING AT ANDREW, BUT I THINK THE CONSTRAINT IS IT'S 20 YEARS OR UP TO THE VALUE OF THE PROPERTY. I THINK WE'VE DONE ROUGH MATH AND OR UP TO THE CONSTRUCTION VALUE OF THE PROPERTY. YEAH. AND I THINK WE'RE UNLESS HOT COMPLETELY CHANGES, I THINK WE'RE GOING TO PROBABLY GO THE FULL 20 YEARS ANTICIPATED. SO THAT IS WHAT WE'RE ANTICIPATING WILL BE REBATED BACK. SO YOU'LL SEE THAT $929,000. SO THOSE OUT HERE UP ON THE SCREEN, WE'RE UP AT THE TOP, WE'RE ON THE SECOND LINE OF NUMBERS. SO THE FIRST THING THAT GOES BACK IS THE REBATE. THEN WE TAKE 3% OUT OF THE 7% AND ALLOCATE IT TO CVB AND THEN A 0.5% OF THE 7% GOES TO THIS ACTIVITY FUND. THEN THE DEBT SERVICE IS COVERED BY THAT'S THE CITY'S PORTION OF THE DEBT SERVICE. AND THAT'S A WHOLE OTHER CALCULATION BECAUSE THE WAY THAT WORKS IS WE TAKE THE ANNUAL DEBT SERVICE ON THE THREE OUTSTANDING DEBT ISSUANCES, TWO FOR THE MPEV, ONE FOR THE PARKING GARAGE, AND WE TAKE 1.1 OUT OF IT BECAUSE 1.1 IS FUNDED BY CVB OUT OF THEIR 3.584 NUMBER. THEY'RE GOING TO PAY BACK TO THE CITY 1.1 FOR DEBT SERVICE. SO WHEN WE CALCULATE THE CITY'S DEBT SERVICE PIECE. WE TAKE THE TOTAL DEBT SERVICE MINUS CVBS PORTION, MINUS 350,000 COMING FROM THE MPEV LEASE, MINUS 250,000 COMING FROM LGC FROM THE PARKING GARAGE ACTIVITY, AND THAT NETS THE 1.8 MILLION. OKAY IF LGC WAS TO HAVE A SALE OF THAT RETAIL SPACE OVER THERE, IS THAT FACTORED IN THIS NUMBER? NO, IT IS NOT, THAT COULD CHANGE. SO THAT AMOUNT WOULD CHANGE. THAT IS CORRECT. HYPOTHETICALLY, WHAT WOULD THAT CHANGE? SO HYPOTHETICALLY, I BELIEVE I CAN PULL IT UP. BUT I THINK WHAT THE ORIGINAL DOWNTOWN PRO FORMA HAD PROJECTED WAS THAT LGC WOULD BE CONTRIBUTING CLOSER TO, I THINK IT WAS ABOUT $450,000 ANNUALLY AND IT WAS TO BE STAIR STEPPED UP. BUT THIS IS THE BUDGET YEAR. THEY WERE SUPPOSED TO BE AT THAT AMOUNT, SO THEY'VE BEEN BEHIND FOR A COUPLE OF YEARS. WE COULD ALWAYS CERTAINLY REQUEST THAT THEY PAY MORE THAN THAT 450,000. BUT I WOULD THINK AT A MINIMUM WE WOULD WANT TO GET THAT UP AND THAT WOULD BE THAT WOULD SHAVE 200,000 OFF OF THAT 1.8 MILLION THAT WE'RE SHOWING RIGHT THERE. [00:45:01] SO YOU WOULD ADD ANOTHER $200,000. YES. TO THIS? YEAH. OR BACK THAT DOWN TO 1.6 OR TAKE IT OFF. YEAH, EXACTLY. WHICH ONE YOU'RE HOWEVER, YOU'RE DOING THE MATH. YES. AND THAT THAT HELPS THAT BOTTOM LINE. SO THEN THE NEXT PIECE IS THEN THAT CIVIC CENTER SUBSIDY. WE'VE BEEN TALKING ABOUT THAT 2.7. AND THEN YOU'LL SEE NET AVAILABLE FOR SIP AS A NEGATIVE NUMBER. AND THAT'S WHERE WE HAVE DISCUSSED THROUGH HOW WE'RE GOING TO COVER PORTIONS OF THAT. WE'VE GOT SOME WE ALSO HAVE A FULLY BUDGETED FOR THE ENTIRE YEAR AT FULL STAFF. I HOPE THAT IS ACHIEVABLE. I'M LOOKING AT BO AND IT'S NOT THAT I DOUBT HIS LEADERSHIP SKILLS, BUT THAT WITH 36 POSITIONS IT'S HARD TO KEEP THEM FULLY STAFFED FOR AN ENTIRE YEAR. ANY SAVINGS WE ACHIEVE WILL BACK OFF THAT NUMBER. WE ALSO ARE GOING TO BE SEEKING OTHER REVENUE SOURCES TO TRY TO BRING THAT TO A FULL ZERO. SO WE DO NOT ANTICIPATE, BUT WE DO NOT ANTICIPATE ANYTHING BEING AVAILABLE FOR CAPITAL FROM CITIES HOT COLLECTIONS. OKAY. ON THE PERCENTAGES, YES. 9.3 MINUS THE HOT REBATE REALLY LEAVES YOU COLLECTING 8.3. ESSENTIALLY, YES. YOU TAKE THAT AND YOU DO YOUR PERCENTAGES BASED ON THAT FOR CVB OR DO YOU DO THE SO YOU DON'T DO THE PERCENTAGES ON 9.3? NO, WE DO IT NET OF THE REBATES BECAUSE WE JUST BASICALLY SAY THAT DOESN'T FLOW INTO THE CALCULATION BECAUSE NOBODY EVER GETS THAT MONEY. SO YOU'RE AT 8.3. THAT'S WHERE YOUR 50%. SO THEY GET SO 50% GOES TO CVB AND THE ACTIVITY FUND PORTION LINE. SO IF YOU ADD THOSE TWO LINE ITEMS TOGETHER, THAT'S THE TOTAL OF 4.1 OR WHATEVER. YEAH. HALF OF THE EIGHT THREE? THAT IS CORRECT. OKAY. AND THEN YOUR ARE YOU SHOWING US THAT THE THE DEBT SERVICE AND THE THE THE PROJECTED SUBSIDY IN 2324 IS WITHIN BUDGET? YES. AND THAT LEAVES US $334,000 FOR CIP. THAT ACTUALLY IS 334,000 THAT WE ARE GOING TO MISSING. YES. THAT WE WILL BE WORKING TO CLOSE THAT GAP THIS YEAR. AND WE FEEL CERTAIN WE CAN DO THAT. AND AS YOU JUST MENTIONED, IF THERE'S ANY CAPABILITY OF THE LGC TO ACHIEVE THAT FULL DEBT SERVICE PAYMENT THAT WAS ANTICIPATED, THAT ALMOST BALANCES IT OUT. SO YOU ALMOST WOULD HAVE A BALANCED BUDGET IF YOU HAD THE LGC, IF IT WERE ABLE TO TO HYPOTHETICALLY PERFORM IN A SALE OR A TRANSACTION. AND THEN IF YOU TOOK 150 TO $200,000 WORTH OF REVENUES OFF OF THE PAVILION. YES. THAT WE'VE SPENT, YOU KNOW, THEN WE'RE FULLY BALANCED. OKAY. YES. YEAH, THAT'S MY THOSE ARE MINE. THANK YOU. YES. AND THEN I WON'T GO OVER IT, BUT IT WORKS THE EXACT SAME WAY DOWN BELOW. WE DID HAVE 900,000. THAT'S THE CURRENT YEAR THAT THAT SECOND SET OF NUMBERS THERE IS THE CURRENT YEAR PROJECTIONS. AND YOU'LL SEE THAT WE'RE A LITTLE OFF OF WHAT WE HAD ANTICIPATED. BUT WE THINK THAT THAT IS WE WILL SETTLE THAT EITHER FROM THE CAPITAL STANDPOINT BECAUSE WE HAVE AN EXISTING SOME EXISTING GRANT DOLLARS IN CAPITAL OR WE WILL HAVE SOME HOPEFULLY EITHER SOME ADDITIONAL REVENUES. WE WE WE WE PROJECT THOSE CONSERVATIVELY AS WE DO ON EXPENSES. SO WE THINK WE CAN DEFINITELY CLOSE THAT $200,000 GAP IN THE CURRENT YEAR AS WELL. BUT AS YOU CAN SEE, I THINK BOTTOM LINE, WHAT I WANTED TO SHOW ON THIS IS STEPHANIE, CAN YOU SCROLL UP JUST A LITTLE BIT FOR ME? NOPE. THE OTHER WAY. THERE WE GO. SO YOU'LL SEE RIGHT THERE. WE HAD 900,000 IN CAPITAL FOR THIS YEAR THAT WE WILL BE ABLE THAT WE'RE COVERING. AND THEN IF YOU'LL SCROLL BACK UP, STEPHANIE, WE DON'T HAVE ANY CAPITAL. ACTUALLY. WE'RE TRYING TO CLOSE A GAP PRIOR TO EVEN HAVING ANY CAPITAL FUNDING OUT OF HOTEL OCCUPANCY TAXES. AND AGAIN, THE BIGGEST PIECE OF THAT THAT'S DRIVING IT IS THAT GROWING CIVIC CENTER SUBSIDY. AS COSTS CONTINUE TO RISE, AS REVENUES ARE PROJECTED TO STAY FLAT. I DO KNOW THAT THERE'S BEEN AT LEAST 1 OR 2 SHOWS THAT ARE NOT COMING BACK THIS NEXT YEAR. AND SO I'M NO BOWS ALREADY GOT PLANS HOPEFULLY ON HOW TO REPLACE THAT. BUT I THINK FLAT IS I THINK OUR OPTIMISTIC OUR CVB DOES A GOOD JOB OF TRACKING ECONOMIC IMPACT. DO WE HAVE AN ECONOMIC IMPACT STUDY ON CIVIC CENTER ALONE LIKE LET'S SAY, CIVIC CENTER PAVILION? WHAT'S THE ECONOMIC IMPACT VERSUS THE AMOUNT OF MONEY THAT WE'RE SUBSIDIZING THIS? SO ARE WE ARE WE ARE WE GETTING $5 MILLION IN HOTEL STAYS AND RESTAURANTS AND ETCETERA, YOU KNOW, FOR THIS AMOUNT OF MONEY? SO I THINK WE DEFINITELY ARE GETTING WE A LOT OF OUR HOTEL OCCUPANCY TAX COLLECTIONS ARE FROM EVENTS THAT ARE AT THE CIVIC CENTER. [00:50:05] THERE'S ALSO A CERTAIN AMOUNT OF SALES TAX THAT'S GENERATED IN OUR COMMUNITY RELATED TO THESE EVENTS THAT ARE GOING ON AT THE CIVIC CENTER. IF YOU GUYS WILL GIVE US A LITTLE TIME, WE WILL REGROUP WITH CVB ON THAT. WE'LL GET YOU SOME INFORMATION I CERTAINLY WANT TO GET Y'ALL. I'M HEARING WE WANT TO GET SOME TREND INFORMATION MAYBE OVER THE LAST 5 TO 10 YEARS AND THEN WE WANT TO GET THAT ECONOMIC IMPACT INFORMATION TO YOU ALL AS WELL. SO I'VE GOT BOTH OF THOSE ON OUR TO DO LIST TO FOLLOW UP WITH YOU GUYS AT A FUTURE POINT. GOOD BOW. I'M JUST LOOKING AT LIKE WE'RE LOOKING AT REVENUES, RIGHT? I MEAN, ANY WAY WE CAN GET THIS UP. SO I'M LOOKING AT THE CONCESSIONS. YES, SIR. ON WHAT WE BROUGHT IN AND THEN WHAT'S BUDGETED IN THAT TYPE OF DEAL. SO IT LOOKS LIKE, YOU KNOW, I GUESS THIS YEAR PRETTY WELL WE DID PRETTY WELL. WE'VE DONE EXTREMELY WELL THIS YEAR WITH OUR CONCESSIONS. THE CONTRACTUAL BASIS HAS A FLOOR OF 400,000 DUE TO OUR FACILITY ON OUR PORTION OF CONCESSIONS. AND AS OF ABOUT A MONTH AGO, WE WERE ALREADY AT $504,000 OF CONCESSION REVENUE WITH THREE MONTHS TO GO KIND OF A SLOWER THREE MONTHS, BUT STILL. OKAY. SO I SAW THAT THE SPORTS SIDE OF IT WAS A BIG CHUNK. YES, RIGHT. THEY SPENT A LOT MORE MONEY. UM, SO I SAY THE BUDGETED FOR 2022 WAS 67,000. UM, SO WHICH WAS CONSIDERED OVER DOUBLE WHAT WAS ACTUALLY BUDGETED. RIGHT. YEAH. BUT I SEE. AND IS THERE A REASON FOR THAT SPIKE? BECAUSE I SEE IN 2023 WE'RE BACK DOWN TO 30. SO WHAT WAS THE REASON FOR THAT HUGE SPIKE? PART OF THAT WAS THE LOSS OF THE FOOTBALL TEAM. OKAY. WE DID NOT HAVE FOOTBALL THIS YEAR. OKAY, GOTCHA. BUT LIKE I SAID, WE'RE WE'RE WORKING WITH ANOTHER LEAGUE RIGHT NOW ON BRINGING IN A NEW FOOTBALL TEAM FOR NEXT SUMMER. OKAY. SO THAT'S WHY WE'RE BUDGETING LESS. I MEAN, CONSIDERABLY LESS. OKAY. BUT OVERALL, I MEAN, WE'RE STILL UP FROM 219 TO 303. YES. SO, OKAY. NOW THAT THAT DOES INCLUDE THE PAVILION, RIGHT. THE EXTRA CONCESSIONS IN THE PAVILION THAT. YES. OKAY. BECAUSE LIKE I SAID, YOU KNOW, WE TALKED ABOUT THE TRAILER AND THAT TYPE OF DEAL. SO HOPEFULLY IT'S A BIG HIT AND HOPEFULLY WE'VE GOT INCREASED CONCESSIONS OUT THERE AS WELL. OKAY. SO THAT WAS MY MAIN DEAL. I WAS CURIOUS ABOUT THE SPORTS SIDE OF IT AND ON WHERE WHY THE SPIKE AND BUT YET. WELL, SO WE BUDGETED 28 OR 28 AND 21, BUT THEN WE WERE AT 67 AND 22. THAT'S JUST AN ANOMALY BECAUSE OF THE THE FOOTBALL. THAT'S WHAT IT WAS. FOOTBALL REALLY BRINGS IN A LOT OF. OKAY. OKAY. RESPECT. EVEN THOUGH THERE'S FEWER GAMES. BUT. GOTCHA. OKAY. LARGER CROWDS. YEAH, THAT WAS MY QUESTION. THANK YOU. YEAH, BUT JUST MY ONLY QUESTION IS ON YOUR TRAVEL. CAN YOU KIND OF EXPLAIN WHAT THE TRAVEL IS FOR? AND BECAUSE I'M LOOKING AT IT, IT'S SHOWING, YOU KNOW, YOU ONLY SPENT 4 OR 5000 AND THEN LAST YEAR WAS 10,000. AND THEN BUT WE'RE STILL ASKING FOR $20,000 IN TRAVEL. THE 20,000 IS A GENERAL AMOUNT UTILIZED FOR NORMAL TRAVEL IN A YEAR'S TIME THAT WILL COVER ONE PERSON. GENERALLY, THE GM MAKING IT TO THE ANNUAL CONVENTION INDUSTRY CONVENTION THAT'S HELD IN DIFFERENT CITIES. THAT'S TYPICALLY GOING TO BE AROUND $5,000. THERE'S OTHER TRAINING OPPORTUNITIES SENDING OTHER STAFF MEMBERS TO VARIOUS REGIONAL AND NATIONAL TRAINING OPPORTUNITIES AS WELL. SO 20,000 IS THE TYPICAL DOLLAR AMOUNT. SINCE COVID, WE'VE REALLY KIND OF CUT BACK ON THAT. PART OF THAT WAS FORCED BECAUSE SOME OF THESE ACTIVITIES WERE NOT WERE NOT OCCURRING IN PERSON. SOME OF THAT JUST HAS BEEN OUR STAFFING LEVEL AT THE TIME. NOT BEING ABLE TO RELEASE SOMEBODY TO GO TO SOME OF THESE CONVENTIONS. SO THAT'S WHY I TRIMMED IT BACK TO ANTICIPATED 10,000 AND THEN MOVING IT BACK TO THE NORMAL DOLLAR AMOUNT. OKAY FOR THIS NEXT BUDGET YEAR AS FAR AS REQUEST DOES NOT MEAN THAT WE WILL FULFILL EACH ONE OF THOSE OPPORTUNITIES. RIGHT? THAT'S ALL I'VE GOT. I DO HAVE JUST SO I'M DOING THE MATH RIGHT. SO I SEE IN THE 2324, THE CIVIC CENTER SUBSIDY IS FORECAST TO BE 2 MILLION 657, 458. THAT'S ABOUT 917. I MEAN, IT'S CLOSE TO I MEAN, IT'S $917,000 MORE TO SUBSIDIZE THE CIVIC CENTER NEXT YEAR THAN THIS YEAR IS WHAT WE'RE LOOKING AT. [00:55:07] WHEN I LOOK AT THE BUDGET AND IT'S FAIRLY CLOSE, I CAN WHEN I LOOK AT DECREASED, WHEN I LOOK AT INCREASED EXPENSES. SO WE'RE GOING TO INCREASE OUR EXPENSES $818,000. THE REVENUE'S COMING DOWN SLIGHTLY THAT ROUGHLY THAT DIFFERENCE MAKES ABOUT 826 SO THERE'S ABOUT $90,000, BUT IT'S IN THE BALLPARK OF IT. BUT I'M JUST TRYING TO FIGURE WHAT'S DRIVING. SO I SEE $450,000 OF THAT DIFFERENCE. OF THAT 917 IS PERSONNEL. YOU SAID ABOUT 200. HOW MUCH OF IT IS JUST KIND OF RUN ME THE MAJOR AREAS THAT ARE COSTING US $900,000 MORE TO OPERATE THE CIVIC CENTER NEXT YEAR THAN THIS YEAR? YEAH. AND SO I THINK IF YOU GO THAT PAGE 363 SHOWED A LOT OF IT. YOU KNOW, WE HAD 215 ABOUT FOR ELECTRICITY. WE HAD $200,000 IN PROPERTY INSURANCE INCREASE. AND THEN GIVE ME JUST A SECOND. LET ME LOOK AT ONE THING. TYPICALLY IT'S GOING TO BE UTILITIES AND I.T. AND INSURANCE. SO COUNCILMAN, YOU'RE GETTING AROUND $500,000. AND WE'RE TRYING TO FIND THE OTHER FOUR. YEAH, WELL, I SEE 450 IN PERSONNEL. AND THEN, YOU KNOW, WE MENTIONED. WELL, IT'S NOT THAT I'M. YEAH, I'M JUST TRYING TO GET THAT 50 IN ELECTRICITY. I'M JUST TRYING TO KIND OF GET A BALLPARK OF WHERE THE OTHER ADDITIONAL EXPENSE IS. IT'S LIKE INSURANCE AND BONDS. WELL, THAT'S ANOTHER 200 THERE. SO THAT GETS US UP 456, 50, ABOUT 700. I MEAN, IT'S PRETTY. YEAH. IF YOU GO LIKE PAGE 365, THERE'S ANOTHER $70,000 INCREASE IN ELECTRICITY IN THAT AREA. ALL OF THE PAVILION OBVIOUSLY IS ESSENTIALLY NEW FOR NEXT YEAR. AND THEN. I'M JUST KIND OF SCANNING THROUGH THE PAGES HERE. THERE IS. THERE'S ANOTHER $42,000 IN INSURANCE INCREASE OVER THE GLOBE NEWS CENTER. THAT WOULD BE THE SAME THING FOR INSURANCE. AND THEN WE'RE ANTICIPATING THE ADMIN AND FACILITY COSTS GOING FROM 389 TO 449. SO THAT'S ABOUT, WHAT, $60,000 OR SO, ANOTHER 60,000 THERE. SO I THINK THE REST OF IT'S KIND OF PIECEMEALING IT, BUT I THINK YOUR BIGGEST PIECES THAT ARE DRIVING IT ARE CERTAINLY THE UTILITIES AND THAT INSURANCE AND THEN PERSONNEL BEING FILLED. AND WHAT WE'RE LOSING OUT OF THAT IS CAPITAL THE MILLION DOLLARS TO MAKE CAPITAL IMPROVEMENTS. SO THAT'S TO START WITH. BUT IF THIS TREND CONTINUES WE'RE GOING TO HAVE TOUGH DECISIONS TO MAKE ON THE OPERATIONS OF THE CIVIC CENTER. IT WOULD SEEM TO ME. I MEAN, THERE'S WE HAVE CERTAIN AMOUNT OF OBLIGATIONS THAT WE HAVE TO PAY ON DEBT SERVICE AND, YOU KNOW, OTHER TYPES OF THINGS. WE WANT TO FUND THE CVB AT AN ADEQUATE LEVEL BECAUSE WE'RE NOT GOING TO INCREASE THE HOT TAX WITHOUT THAT. BUT I JUST THINK IT'S, YOU KNOW, I MEAN, IF IT GOES UP ANOTHER MILLION NEXT YEAR OR THE YEAR AFTER THAT, I MEAN, IT'S AND I GUESS I SYMPATHIZE. YOU HAVE AN IMPOSSIBLE JOB. THANK YOU. AS MOST YOU KNOW. BUT FROM OUR PERSPECTIVE, IT'S JUST LIKE, YOU KNOW, WE'VE GOT TO PUT THE PIECES OF THIS PUZZLE TOGETHER. AND AS WE'VE ASKED OTHER DEPARTMENTS, I THINK THE CHALLENGE IS LET'S ABSOLUTELY GO BACK AND LOOK. I MEAN, WE DON'T WANT TO, YOU KNOW, CUT OFF OUR NOSE TO SPITE OUR FACE. BUT I THINK THE CHALLENGE IS THAT WE FACE IS AND PARTICULARLY FOR YOU, I MEAN, WE'RE LUCKY THAT WE DO HAVE THAT HOT TAX. BUT LOOKING IF THERE'S SOME THINGS THAT WE CAN START SAVING NOW THAT WE CAN SAY, WOW, THERE'S SOME SAVINGS IN THE BUDGET, NOT FOR NEXT YEAR, BUT MULTIPLE YEARS WITHOUT DRASTICALLY HAVING TO SHUT THE THING DOWN OR CUT SERVICES. BUT I THINK ANYTHING THAT WE CAN GO BACK AND LOOK AT AND SAY, YOU KNOW, I NEVER THOUGHT WE COULD DO THIS, BUT MAYBE WE CAN FIGURE OUT A WAY TO DO THIS, BECAUSE I THINK THAT'S JUST, YOU KNOW, THE CHALLENGE THAT WE FACE, YOU KNOW, AND YOUR DEPARTMENT IS YOU'RE FACING, YOU KNOW, AND THERE'S REALLY. YOU CAN CONTROL PERSONNEL COSTS. I MEAN, YOU CAN'T CONTROL INSURANCE COSTS. YOU CAN'T NECESSARILY CONTROL ELECTRICITY COSTS IN A SUBSTANTIAL MANNER. SO I THINK IT'S JUST SOMETHING I WOULD SAY LET'S LET'S KIND OF LOOK AT IT AND SEE IF THERE ARE SOME WAYS WHERE WE COULD BE MORE EFFICIENT ON THE PERSONNEL SIDE, BECAUSE I THINK THAT'S THE ONLY WAY THAT WE CAN MAYBE CLOSE THE GAP A LITTLE BIT. SO THAT'S MY THOUGHT. AND TYPICALLY AS I WRITE MY BUDGETS EACH YEAR. LIKE I SAID, I TYPICALLY TRY TO BUDGET FLAT BACK TO LAST YEAR. WE DON'T KNOW WHAT NEW EVENTS WE'RE GOING TO BRING IN. WE DON'T KNOW WHAT EVENTS WE MAY LOSE. WE DON'T KNOW MANY DIFFERENT ASPECTS, BUT TYPICALLY WE TRY TO SAVE AT LEAST 3% ON AVERAGE OF WHAT WE HAVE BUDGETED. [01:00:04] SO. I NEVER ANTICIPATE THAT WE WILL USE THE FULL AMOUNT BUDGETED IN EXPENSE. RIGHT. SO YOU'RE HEDGING YOUR BETS. I GET IT. I UNDERSTAND. [LAUGHTER] YEAH, I UNDERSTAND THAT. BUT I'M JUST SAYING, I GUESS WE'RE AT THE POINT WHERE, AGAIN, ANYTHING THAT WE CAN GO BACK AND LOOK AT AND JUST SAY, LET'S TAKE A DOUBLE OR TRIPLE LOOK AT IT. HOW CAN WE YOU KNOW, ARE THERE ANY WAYS THAT WE CAN BE ABLE TO LOOK AT THAT? BECAUSE I THINK SOME OF THAT WILL INVOLVE REDUCING SOME OF THE REPLACEMENT STUFF THAT WE PURCHASE AND THINGS OF THAT NATURE. WE TAKE A LOOK AT THAT EACH AND EVERY YEAR AND TRY TO BE REALISTIC WITH THE DECISIONS WE MAKE. SO THANK YOU. OKAY, BO, I THINK WE GOT YOU. ANYTHING? ANYTHING ELSE, GUYS? APPRECIATE YOU BEING HERE, SIR. YOU BET. THANK YOU. THANK YOU. WE'LL LOOK FOR THOSE ADDITIONAL TRENDS. AND ANOTHER PIECE OF INFORMATION FROM YOU HERE EMAILED, I'M SURE, LATER THIS WEEK. YEAH, WE CAN CERTAINLY DO THAT. AND THEN WE CAN KEEP THIS DISCUSSION. AS YOU CAN SEE, WE'VE GOT OUR WORK CUT OUT FOR US. SO I THINK THIS WILL NEED TO BE A CONTINUED CONVERSATION WITH COUNCIL ON HOW WE'RE EVOLVING. I THINK WE'RE WE'RE HITTING A CHALLENGING POINT IN THE ROAD, AND SO WE'RE GOING TO NEED Y'ALL'S GUIDANCE. AND JUST WE WANT TO BE VERY TRANSPARENT WITH YOU ALL WITH WHAT WE'RE SEEING. AND SO WE'LL JUST CONTINUE GETTING INFORMATION YOUR WAY AND UPDATING YOU AS WE PROGRESS. AND HOPEFULLY MAYBE THAT PAVILION WILL JUST TAKE OFF AND, YOU KNOW, PRETTY MUCH REVENUE THE WHOLE ENTIRE FACILITY. THAT'D BE FANTASTIC. LET ME JUST SAY, I THINK FROM THIS COUNCIL YOU HAVE A COMMITMENT THAT WE'LL WORK WITH YOU ALL YEAR LONG, AND ALL OPTIONS ARE ON THE TABLE. SO LIKE WHAT WE'RE GOING TO WORK THROUGH THIS AND CONTINUE TO TO LOOK AT IT. IT WON'T JUST BE A ONE LOOK AND THEN TAKE IT UP NEXT YEAR. SO WE'LL GLADLY PARTNER ON IT. SO THANK YOU FOR YOUR TIME. THANK YOU. THANK YOU. GREAT. DO WE HAVE A COUPLE OPTIONS FOR WHAT WE WOULD MOVE INTO NEXT? WE ABSOLUTELY HAVE OPTIONS. SO ONE THING THAT I WAS HOPING WE COULD MAYBE COVER AND SO WAS GOING TO SEE IF MAYBE YOU ALL WANTED TO TAKE A QUICK BREAK BECAUSE WE NEED WE NEED TO COVER PROPERTY TAXES. AND SO IT'S GOING TO TAKE JUST IT'S GOING TO TAKE SOME TIME. AND YOU MIGHT GRAB SOME COFFEE AND CLEAR YOUR HEADS A LITTLE BIT SO WE CAN CRUNCH SOME NUMBERS TOGETHER. OTHERWISE, IF YOU WOULD PREFER WE I MEAN, WE COULD ALWAYS DO A COUPLE OTHER DEPARTMENT BUDGETS. IT'S UP TO YOU. TELL US WHAT WHAT ALL DO YOU HAVE UP FOR TODAY THAT YOU WOULD BE HOPEFUL WE GET THROUGH? HERE'S MY VERY TENTATIVE SCHEDULE SO I WAS HOPING TO COVER, YOU KNOW, EXECUTIVE SESSION, CIVIC CENTER, PROPERTY TAXES. I WANT TO TALK A LITTLE BIT ABOUT THE TMRS COLA INFORMATION ALONG WITH PROPERTY TAXES. THEN WE'RE HOPING TO WE'RE WANTING TO GIVE AN UPDATE ON LIBRARY. I'M ALSO HOPING THEN ENVIRONMENTAL HEALTH BUILDING SAFETY, CITY MARSHAL, MAYOR AND COUNCIL, CITY MANAGER, CITY ATTORNEY, ENGAGEMENT AND INNOVATION. AND IF WE COULD SQUEEZE MUNICIPAL COURT IN THERE SOMEWHERE, THAT WOULD BE FANTASTIC TOO. ALL TODAY, IF POSSIBLE. NOT SURE IF THAT'S REALISTIC. JUST IT DEPENDS ON HOW FAST OR SLOW WE GO ON SOME OF THESE ITEMS. WHERE DO WE THINK? WHAT? WHERE DO YOU THINK? I THINK WE COULD DO LUNCH DEPENDING ON HOW QUICKLY WE GO THROUGH PROPERTY TAXES AND COLA, WE WE COULD POSSIBLY EVEN SQUEEZE LIBRARY IN RIGHT BEFORE LUNCH AND BREAK ABOUT AT THAT POINT, I'M BEING VERY OPTIMISTIC, BUT I THINK THAT COULD BE GOOD. OKAY. SO THEN WE'RE SHOOTING AFTER LUNCH FOR ENVIRONMENTAL HEALTH, CITY MARSHAL, BUILDING SAFETY, THINGS OF THAT NATURE. AND THEN WHAT DO YOU HAVE SCHEDULED FOR TOMORROW? SO TOMORROW WE ARE LOOKING TO MAYBE START THE DAY WITH SOME ITEMS. THIS IS BEING VERY OPTIMISTIC. ABSOLUTELY. ABSOLUTELY. KIND OF STARTING OFF WITH DRAINAGE, KIND OF GIVING SOME UPDATES ON SOME QUESTIONS YOU ALL HAD ASKED FROM THE LAST ROUND ALONG WITH SOLID WASTE. SO JUST SOME INFORMATION ON BOTH OF THOSE. STREETS, TRAFFIC AND THEN WE ARE SCHEDULED TO HAVE THE AEDC GROUP COME IN AT 10 A.M. TOMORROW MORNING. AND THEN I KNOW WE HAVE A, I THINK A HARD STOP AROUND TWO ISH, I THINK, TOMORROW. AND SO I WAS ALSO HOPING TO SQUEEZE IN AIRPORT AS WELL. AND THEN ANY OF THESE MAYBE THAT WE CAN'T I'VE ALSO GOT WE'VE GOT EVERY DEPARTMENT ON STANDBY. SO IF WE'RE MOVING FASTER THAN WHAT THIS SCHEDULE ALLOWS, WE WILL JUST BE BRINGING DEPARTMENTS IN TO COVER BECAUSE WE STILL HAVE SEVERAL OTHERS THAT WE NEED TO COVER. IF WE COULD, JUST TO MAKE SURE WE'RE UTILIZING EVERYBODY'S TIME EFFICIENTLY, I THINK MAYOR'S BUDGET, YOU KNOW, THIRD FLOOR ADMIN BUDGET, THOSE WE COULD PUSH. OKAY. SURE. IF WE NEEDED TO. OKAY. WE CAN FOCUS ON THE DEPARTMENTS THAT WE'RE REALLY UTILIZING OUT HERE. SO THE COURT AS WELL, I THINK WE COULD PUSH. [01:05:05] OKAY. I KNOW THAT ONE'S GOING TO GO PRETTY QUICK, SO I WOULD BE GREAT IF YOU WANT TO WORK THAT ONE IN WITH OUR JUDGE IF WE NEEDED TO. AND THAT ONE'S ON OUR MUNICIPAL COURT CLERK SIDE. SO IT'S WE'VE ALREADY TALKED WITH THE JUDGE AND THIS WOULD BE DONNA KNIGHT. SO IT'S JUST KIND OF THE ADMINISTRATION SIDE. IT WOULD GO VERY QUICKLY. AND I KNOW SHE'S GOING TO BE OUT TEACHING SOME CONFERENCES, I THINK ON SOME FUTURE DATES WE HAD TALKED ABOUT. SO WE WERE HOPING MAYBE WE COULD SQUEEZE HER IN. SO IF WE NEED TO TRY TO SQUEEZE THAT ONE IN, I DEFINITELY WANT TO PRIORITIZE EDC AND FLOYD. IT LOOKS LIKE FLOYD HAS QUITE A BIT OF THINGS IN DRAINAGE, STREETS, YOU KNOW. SOLID WASTE TRAFFIC. WE'VE EVEN GOT SOME MORE OF FLOYD'S GROUPS IF WE WANTED TO, KIND OF. YEAH, WE HAVE SOME INFORMATION ON WATER AND SEWER WE WERE WANTING TO SHARE WITH YOU GUYS AND A FEW OTHER THINGS. IT'S A LOT. SO. SO LET'S DO THIS IF WE CAN. WHAT DO YOU PROJECT ON PROPERTY TAX? CAN YOU DO THAT IN AN HOUR? YES, DEPENDING ON QUESTIONS. BUT I WANT TO IT'S YEAH. SO PROBABLY NOT. WE'LL SAY AN HOUR TO AN HOUR AND A HALF, SO. OKAY. 10:05 RIGHT HERE. LET'S TAKE A TEN MINUTE BREAK. LET'S COME BACK HERE AT 10:15. LET'S HIT THIS THING HARD TILL AROUND 11:45. PERFECT. WE HAVE SOME BOX LUNCHES HERE. ARE WE TRYING TO FEED EVERYONE? DO WE KNOW WHAT WE HAVE BRINGING IN OR HAVE A LIMITED NUMBER ENOUGH TO COVER? STEPHANIE I'M LOOKING AT YOU. OKAY. SO WE WOULD ONLY TAKE AROUND A 15, 20 MINUTE BREAK AND THEN WE'RE GOING TO TRY TO EAT AND TALK AT THE SAME TIME. KEEP OURSELVES MOVING FAST. WE'RE GOING TO PUSH HARD TILL FIVE TODAY, CORRECT? YES. OKAY. AS LATE AS YOU ALL WANT TO STAY. I THINK BY 5:00, 4:30, WE'LL BE ABOUT THERE. MAYBE BRAIN DEAD MORNING. OKAY, LET'S GET THROUGH HIS FIRST. IF WE NEED TO PUSH EDC BACK TO 11 OR WHATEVER, THAT'D BE FINE, JUST BASED ON WHAT YOU NEED. AND THEN LET'S HIT ALL OF OUR OTHER DEPARTMENTS THAT WE REALLY NEED TO FOCUS ON BEFORE WE KIND OF HIT CITY HALL. OKAY. SURE. AND THEN WE'LL SEE IF WE GET TO IT TOMORROW. THAT'S GREAT. AND IF WE DON'T, THEN WE'LL COME BACK AFTER THAT ONE TWO WEEKS FROM NOW TO DO THE REST OF ADMIN. OKAY. AND THEN WE DO HAVE SOME GRANT FUNDS TO COVER PROBABLY IN A COUPLE OF WEEKS AND SOME OTHER ITEMS, SO I LIKE IT. WELL, TEN MINUTE BREAK IF YOU GUYS WILL BE BACK IN HERE 10:15 WE'LL BE ROLLING AT THAT TIME. * This transcript was compiled from uncorrected Closed Captioning.