Aug 10, 2023 City Council Special Meeting

SO, WELL, GOOD MORNING.

[1. Call to Order]

[00:00:04]

WE'RE TWO MINUTES AHEAD OF SCHEDULE ALREADY FROM OUR NORMAL FIVE MINUTES LATE.

SO, CST TOM.

SO, SECOND DAY OF BUDGET WORKSHOP.

I'VE ASKED COUNCILMAN CRAFT TO OPEN US UP HERE IN PRAYER, AND THEN WE'LL CALL IT.

WELL, I'LL GO AHEAD AND CALL US TO ORDER NOW AND THEN WE'LL HAND IT OVER TO MISS LAURA AND SHE'LL, SHE'LL DRIVE AGAIN.

YEAH. ALL RIGHT.

LET'S PRAY. DEAR HEAVENLY FATHER, LORD, WE COME TO YOU RIGHT NOW JUST TO SAY THANK YOU FOR YOUR GRACE.

AND. AND THANK YOU FOR EVERYTHING YOU DO FOR US.

WE PRAY FOR TODAY AND THROUGHOUT THIS BUDGET PROCESS THAT YOU JUST GUIDE US WITH, WITH YOUR WISDOM AND DISCERNMENT AND KNOW THAT WHATEVER DECISIONS ARE MADE ARE IN THE BEST INTEREST OF THE CITIZENS OF AMARILLO AND DONE BY YOU, LORD.

WE THANK YOU FOR EVERYTHING YOU BLESS US WITH.

WE THANK YOU FOR EVERYONE IN THIS ROOM.

WE THANK YOU FOR THE CITIZENS THAT WE HAVE THE PLEASURE TO SERVE.

AND WE PRAY FOR A GREAT DAY AND A GREAT WEEK AND A GREAT YEAR.

LORD, IT'S IN JESUS'S NAME.

WE PRAY. AMEN.

AMEN. APPRECIATE THAT.

COUNCILMAN. GOOD MORNING.

[2. City Council Budget Workshop]

GOOD MORNING. ARE YOU READY TO ROLL OVER THERE? ABSOLUTELY. ARE YOU GUYS READY FOR ANOTHER FUN DAY? I THINK WE ARE ALL THE WAY TILL ABOUT 1:30.

OKAY, WE WILL DO THAT.

SO JUST WANTED TO QUICKLY REMIND YOU ALL KIND OF WHAT WE'RE HOPING TO ACHIEVE TODAY.

SO WE ARE STARTING OUT WITH OUR DRAINAGE GROUP HERE AND WE'RE ALSO GOING TO TOUCH BASE ON SOLID WASTE, SOME FOLLOW UPS.

THEN WE'RE GOING TO QUICKLY GO INTO STREETS TRAFFIC IF WE HAVE TIME.

CP AND PUBLIC WORKS AND FLEET AND THEN WE'RE GOING TO PAUSE AT 10 A.M.

AND BRING IN ADC AND I BELIEVE SOME OF THEIR BOARD MEMBERS ARE GOING TO BE COMING IN ABOUT THAT TIME.

AND THEN ONCE THAT WRAPS UP, WE'LL FINISH ANY OF THAT AND TRY TO GET AIRPORT IN BEFORE 130.

SO Y'ALL HANG ON.

WE'VE GOT A PROBABLY A FAST AND FURIOUS DAY, BUT WE'RE HERE TO ANSWER ANY QUESTIONS.

AND WITH THAT, I WILL HAND IT OVER TO ALAN.

AND WE JUST WANTED TO FOLLOW BACK UP ON SOME OF THE INFORMATION THAT YOU ALL REQUESTED RELATED TO OUR DRAINAGE UTILITY SYSTEM.

IF THERE WERE SOME CAPITAL PROJECTS THAT WE COULD ADDRESS BY DOING MAYBE A DEBT ISSUANCE.

SO WE'VE GOT A COUPLE OF OPTIONS AND I'LL JUST HAND IT OVER TO ALAN AND THEY'VE GOT SOME HANDOUTS AT YOUR PLACE THERE THAT I THINK ARE GOING TO BE REALLY IMPORTANT.

AND STEPHANIE, I THINK I HAD EMAILED THEM TO YOU.

IF YOU GET A CHANCE AT SOME POINT TO PULL THEM UP.

OKAY. MICAH, DO YOU HAVE AN EXTRA SET OF THE HANDOUTS? OKAY FOR STEPHANIE, PLEASE.

SO LAURA MENTIONED WE PUT A COUPLE OF HANDOUTS IN FRONT OF YOU.

ONE OF THEM IS JUST A SINGLE PAGE.

WANTED TO PROVIDE IT. IT JUST SHOWS A COMPARISON OF DRAINAGE UTILITY FEES FOR THE CURRENT FISCAL YEAR FOR AMARILLO AND THEN SOME OF THE OTHER CITIES THAT ARE EITHER OUR PARTNERS IN THE PANHANDLE, IN LUBBOCK OR CITIES THAT ARE A SIMILAR SIZE.

AND WE JUST PROVIDED THIS SO THAT YOU CAN KIND OF SEE SIDE BY SIDE HOW OUR CURRENT DRAINAGE UTILITY FEE COMPARES TO OTHER CITIES THAT ARE TYPICAL TO US.

SOME OF THEM STRUCTURE THEIR FEES A LITTLE BIT DIFFERENT.

AND SO WE HAD TO ADJUST THE NUMBERS TO MAKE IT WHERE WE'RE COMPARING APPLES TO APPLES, SIMILAR SIZED LOT, SIMILAR SIZE COMMERCIAL PROPERTIES, BUT THAT'S WHAT THIS REPRESENTS.

THE OTHER HANDOUT IS THE FOUR SCENARIOS THAT WE WENT AND RAN TO EFFECTIVELY LOOK AT WHAT DIFFERENT PROJECTS WE PROPOSE OR COULD DO WITH VARIOUS DEBT ISSUANCES.

THE FIRST SCENARIO IS WHAT WE BROUGHT TO YOU TWO WEEKS AGO, WHICH IS THE 5% RATE INCREASE FOR JUST COST OF DOING BUSINESS AND FUNDING $3.2 MILLION OF CIPS WITH CASH, AND THAT WAS THE $800,000 DRAINAGE ANY AND THE OTHER ONE WAS THE GEORGIA STREET CONSTRUCTION UNDERNEATH.

THAT'S JUST A GRAPH THAT SHOWS YOU WHAT THE CURRENT VERSUS PROPOSED DRAINAGE UTILITY FEE WOULD BE FOR THE THREE TIERS OF RESIDENTIAL AND THEN FOR COMMERCIAL FOR EVERY 2800FT² OF IMPERVIOUS SURFACE.

SO THAT'S A SCENARIO.

YOU'VE ALREADY SEEN THE PAGE BEHIND THAT.

I THINK LAURA COULD PROBABLY EXPLAIN IT A LOT BETTER THAN I COULD.

YES, I WILL ABSOLUTELY DO THAT.

SO THE PAGE BEHIND THIS, THIS IS THESE ARE JUST KIND OF OUR CASH FLOWS TO MAKE SURE THAT WE'RE MEETING OUR TARGETED RESERVES.

THIS, AGAIN, IS THE ORIGINAL PROJECTION THAT WE WENT OVER AND IT'S IN THE FRONT OF YOUR BUDGET BOOK.

GIVE ME A SECOND AND I'LL FIND IT HERE.

BUT IT'S IT'S JUST A DUPLICATE.

SORRY. OF PAGE 43 IN YOUR BUDGET BOOK.

SO THAT'S WHAT THIS ONE IS HERE.

AND SO WHAT IT BASICALLY SHOWS IS THIS IS WITH A 5% RATE INCREASE, WITH CASH FUNDED CAPITAL ONLY OF 3.2 MILLION AND THEN EXISTING DEBT SERVICE PAYMENTS.

AND THAT WE ARE WE ARE RIGHT AT OUR CALCULATED TARGET RESERVES.

AND SO WE ARE KIND OF USING THIS PAGE TO COMPARE BACK AND FORTH AS WE WALK THROUGH THESE DIFFERENT SCENARIOS.

SO I'LL PASS IT BACK TO ALAN NOW.

THANKS. AND SO BEFORE WE MOVE ON TO THE OTHER SCENARIOS, I JUST KIND OF WANTED TO TOUCH ON THAT, THAT THAT'S WHAT WE BROUGHT YOU BEFORE.

[00:05:04]

SO I MET WITH OR I SHOULD SAY PUBLIC WORKS STAFF, MET WITH CP AND INPUT FROM FLOYD AS WELL.

AND THE INPUT THAT YOU ALL GAVE US TWO WEEKS AGO TO IDENTIFY PROJECTS THAT ACCOMPLISH A NUMBER OF THINGS REALLY HAVE AN IMMEDIATE IMPACT FOR FLOOD PLAIN FLOOD PRONE AREAS, PROJECTS THAT ARE IDENTIFIED IN EITHER AN EXISTING MASTER PLAN OR AS AN EXISTING CIP PROJECTS KIND OF THE ABILITY TO FUND IT IN THE SCENARIO WE'RE GIVING. SO FOR EXAMPLE, IF IF A SCENARIO WE HAVE SAY, IS GOING TO GENERATE $8 MILLION IN IN DEBT REVENUE, WELL, WE DON'T NECESSARILY WANT TO PROPOSE AN $8 MILLION PROJECT.

AND IT'S ALL GONE IN ONE THING.

AND SO KIND OF LOOKING AT WHERE CAN WE GET THE MOST BANG FOR THE BUCK AND THEN THE BALANCE OF GROWTH VERSUS EXISTING INFRASTRUCTURE THAT WE TALKED ABOUT A FEW WEEKS AGO.

SO I KIND OF WANT YOU TO UNDERSTAND HOW WE PRIORITIZE THE PROJECTS THAT WE'RE PROPOSING TO YOU HERE TODAY.

SO MOVING INTO SCENARIO TWO, THIS IS STILL A 5% RATE INCREASE, BUT DROPPING DOWN THE CASH FUNDED CIP TO 2.2 MILLION AND THEN ISSUING DEBT IN $13.3 MILLION, WHICH WOULD TAKE $1 MILLION A YEAR TO FUND.

SO THERE WE STILL KEEP THE DRAINAGE AND I WE HAD TO DECREASE THE COST OF THE CASH FUNDED PROJECTS.

AND SO YOU SEE TWO THERE, ONE THAT'S KIND OF RELATED TO GROWTH 34TH AND GRAND CHANNEL.

AND THEN THE OTHER ONE THAT'S RELATED TO A LARGE COMPLAINT THAT WE GOT DURING THE RECENT RAINS, WHICH WAS THE COLTER AND HILLSIDE INLETS.

WE SAW A LOT OF STANDING WATER DURING STORM EVENTS AT THE INTERSECTION OF COLTER AND HILLSIDE.

NOW 30 MINUTES OR AN HOUR AFTER THE RAIN THAT WOULD GO AWAY.

BUT IT CAUSES A SIGNIFICANT HAZARD FOR THE DRIVING PUBLIC.

AND SO WE FEEL LIKE WITH A RELATIVELY SMALL PROJECT THERE, WE COULD HELP ALLEVIATE SOME OF THAT.

SO CASH FUNDED IS THE PROJECTS IN GREEN AND THEN THE REMAINING PROJECTS ON THERE, WHICH KIND OF ARE THAT BLUE GRAY COLOR.

THOSE THOSE WOULD BE THE ONES THAT WE WOULD PROPOSE TO FUND THROUGH DEBT.

AND SO YOU HAVE COLTER AND HILLSIDE INLETS.

I APOLOGIZE. THAT'S A THAT SHOULDN'T BE ON THERE BECAUSE THAT'S A DUPLICATE.

BUT THE ONES BELOW THAT PLAYA SEVEN PUMP STATION, WHICH IS IN THE EXISTING CIP, GEORGIA STREET CONSTRUCTION, WHICH IS NEEDED TO BE ABLE TO CONSTRUCT THE ARTERIAL ALL THE WAY FROM BURKE SOUTH TO THE LOOP LAMAR STREET AT 45TH.

THAT'S A PROJECT I WANT YOU TO BE AWARE OF.

THAT'S ON THE SOUTH SIDE OF BENNETT LAKE.

THAT IS AN AREA THAT HAS AN EXTREMELY HIGH AMOUNT OF WATER RESCUES.

IT DOESN'T IMPACT A LONG STRETCH OF ARTERIAL STREET, BUT WHEN IT DOES FLOOD, IT GETS RELATIVELY DEEP.

AND SO SOME IMPROVEMENTS THERE COULD SIGNIFICANTLY DECREASE THE AMOUNT OF WATER RESCUES THAT OUR EMERGENCY SERVICES HAVE TO RESPOND TO.

AND THE LAST ONE IS SOMETHING THAT WAS TALKED ABOUT AT COUNCIL LAST WEEK, A LAURENCE LAKE PUMP STATION THAT WOULD BE CONSTRUCTION OF A NEW PUMP STATION IN FORCE MAINE, TO DISCHARGE STORMWATER FROM LAWRENCE LAKE TO META PARK.

SO THAT WOULD BE ASSOCIATED WITH THE PURCHASE THAT YOU ALL RECENTLY APPROVED AT 2600.

LINDA DRIVE I KNOW I'M GOING KIND OF FAST AND SO PLEASE, IF YOU HAVE QUESTIONS ABOUT SPECIFIC PROJECTS, I KIND OF LIVE THIS EVERY DAY AND SO I KNOW SOMETIMES I MAY TALK LIKE, OH, EVERYBODY SHOULD KNOW THESE THINGS, SO JUST STOP ME, ASK QUESTIONS.

AND AT THE BOTTOM, JUST TO KIND OF AN EXAMPLE OF OF WHAT THAT DRAINAGE UTILITY FEE WOULD BE.

SO I WANTED TO WEIGH IN THERE.

THAT'S THE EXACT SAME REVENUE AS AS SCENARIO ONE.

THE REVENUE ISN'T ANY DIFFERENT FROM SCENARIO ONE TO SCENARIO TWO.

BOTH ARE A 5% ON THE EXISTING AND THAT'S THE ONE MAYOR WHERE WE'RE USING EXISTING REVENUES IN THAT PROPOSAL TO FUND THE DEBT.

SO IT'S JUST LOWERING THE AMOUNT OF CASH FUNDED CAPITAL AND IT'S SHIFTING THAT OVER INTO DEBT SERVICE INSTEAD.

SO YOU CAN GET THIS, YOU KNOW, $13 MILLION IN PROJECTS.

YEAH. AND KYLE POINTED OUT TO ME THE KOLTER AND HILLSIDE INLETS THAT ISN'T A TYPO.

THAT'S HALF OF THAT BEING FUNDED THROUGH CASH AND HALF OF IT BEING FUNDED THROUGH DEBT.

SO I APOLOGIZE FOR THAT. THAT ISN'T A TYPO, WHICH I GUESS IS A GOOD THING, BUT JUST LOOKING AT THAT, I WAS LIKE, NO, THAT DOESN'T MAKE SENSE.

PLEASE. SO I GOT.

SO ON THE WHEN WE'RE TALKING ABOUT MOVING STORMWATER FROM LAWRENCE LAKE TO MANY PARK, THAT'S GOING TO ALLOW US TO PUMP WHEN IT'S RAINING.

NO THAT WOULDN'T NECESSARILY ALLOW US TO PUMP WHEN IT'S RAINING.

ANY TYPE OF FORCE MAIN SYSTEM RELIES ON GRAVITY STORMWATER DOWNSTREAM.

SO IN THIS SPECIFIC EXAMPLE, THE WATER WOULD GO TO BELL AND I-40, WHERE IT WOULD ENTER A GRAVITY STORM SEWER.

WE DON'T PUMP DURING THAT TIME BECAUSE IT WOULD OVERWHELM THAT SYSTEM THAT'S TRYING TO WORK AT I-40.

SO IT WOULD STILL PAUSE DURING IT WOULD STILL STOP PUMPING DURING RAIN EVENTS.

ONCE THAT RAIN IS DISSIPATED FROM THE SYSTEM, THEN WE WOULD TURN THE PUMPS RIGHT BACK ON.

WHAT'S THAT? USUALLY ANYWHERE FROM 30 MINUTES FOR A SMALL RAIN TO AN HOUR, HOUR AND A HALF FOR THE WATER TO DISSIPATE OUT OF THE GRAVITY SYSTEM.

SO WHEN YOU'RE TALKING ABOUT THE TERMS OF LIKE WE'VE SEEN RECENTLY WHERE WE'RE PUMPING FOR WEEKS AND MONTHS, IT'S A SMALL IMPACT ON THE AMOUNT OF WATER PUMP TO TURN IT OFF DURING A RAIN EVENT. SO I'LL ADD IN THERE THAT WOULD OPERATE JUST LIKE WE OPERATED THE STOCK PUMP UNDER THE CURRENT FLOODING SITUATION.

[00:10:01]

SO YOU CAN PUT IN THE THE NEW PUMP WITHOUT EXCAVATING OR WOULD IT BE BETTER TO EXCAVATE IT FIRST OR.

YES, THAT PUMP CAN GO IN WITHOUT AN EXCAVATION.

IT IS ACTUALLY MORE PROBABLY A MORE EFFICIENT PROJECT IF WE COMBINE THEM.

EFFICIENCY WOULD BE SEEN IF WE COMBINE THOSE TWO.

OKAY. WHAT I KNOW WE'VE KIND OF HIT ON THIS, BUT WHAT'S THE PRICE OF THAT NEW PUMP THAT'S LIKE BECAUSE YOU'RE LOOKING AT GETTING A PUMP.

THAT'S WHAT, TEN PUMPS? TEN, FIVE A MINUTE, IS THAT RIGHT? BUT WHAT'S THE PRICE ON THAT? WELL. OH, YEAH.

THANK YOU. SO, I MEAN THAT WELL, THAT 4.75 IS IS THE PRICE OF THE PROJECT.

WHAT'S THE PUMP? AND I GET THE INFRASTRUCTURE IN ORDER FOR THIS PUMP TO WORK.

JUST LIKE WE'VE GOT TEMPORARY FOR TEXDOT.

I GET THAT. WHAT'S THE PRICE OF THE PUMP? SO THAT.

SO SAY WE TOOK QUOTES ON BASICALLY THOSE TRAILER MOUNTED PUMP VERY SIMILAR TO THE TO THAT TO WHAT THE TEX DOT PUMP THAT WAS SITTING THERE.

THAT'S A 25 TO $30,000 PIECE OF EQUIPMENT SITTING THERE WHEN THAT IS INSTALLED IN A PERMANENT VENUE.

AND AND THE REST OF THE APPURTENANCES THAT GO WITH A PERMANENT INSTALLATION, IT'S IT'S EVEN HIGHER.

BUT IN GENERAL, THEN THOSE THINGS CAN BE EXCHANGED AND WE CAN WORK ON IT.

IT'S A MAINTENANCE READY.

AND SO, YOU KNOW, I WOULD SAY IN THE GRAND SCHEME OF THINGS, THERE'S $100,000 PIECE OF EQUIPMENT SITTING THERE IN A IN A PERMANENT INSTALLATION.

AND TO BE CLEAR, WE PAID.

NOW, GRANTED, I GET THE PIPING AND THE HOSE AND THAT TYPE DEAL CAME WITH IT.

BUT WE ARE PAYING 100 A MONTH.

IS THAT WHAT IT WAS FOR THE TEXAS DOT? NO, FOR THE 200. FOR THE RENTAL.

IT WAS A LITTLE OVER 200,000 A MONTH.

200,000 A MONTH. AND WE USED IT.

WE THEY HAD IT FOR A MONTH AND THEN WE KEPT IT FOR A MONTH TO GET IT AS LOW AS WE COULD.

AND WE'RE LOOKING AT MAYBE 50 GRAND FOR AN ACTUAL PUMP TO PURCHASE AGAIN, WITHOUT THE PIPE, WITHOUT THE INFRASTRUCTURE.

I GET THAT. BUT YEAH, AND THAT TYPE OF PUMP, TOO IS IMPORTANT TO UNDERSTAND, JUST LIKE WE SAW WITH THIS ONE, WHERE IT'S SITTING ON THE SURFACE CAN ONLY TAKE THE LAKE DOWN SO FAR.

YEAH. OKAY.

OKAY. THANK YOU.

GOOD QUESTIONS. ANY OTHERS ON THIS KIND OF THIS SCENARIO AND THOSE PROJECTS? AND YOU'RE GOING TO SEE I'LL TRY NOT TO GO BACK OVER PROJECTS AGAIN AS THAT LIST GETS LONGER AS WE GO INTO OTHER SCENARIOS.

SO IF WE WANT TO MOVE INTO SCENARIO THREE, ABSOLUTELY, PLEASE LOOK AT LAURA'S SHEET AND HOW THAT CHANGES.

LAURA, YOU WANT TO GO OVER? YEAH, ABSOLUTELY.

SO THE NEXT PAGE HERE, IT'S JUST THE SAME AS WHAT WE'VE BEEN GOING OVER.

SO THE DIFFERENCE BECOMES YOUR, YOUR REVENUE IS STILL THE SAME, BUT YOU'RE NOW RECEIVING BOND PROCEEDS OF A LITTLE OVER $13 MILLION.

AND THEN AS YOU COME DOWN THE LIST UNDER THE EXPENDITURES, NOW WE'RE LOOKING AT CAPITAL OF ABOUT 15.5 MILLION AND ALSO YOUR PRINCIPAL AND INTEREST PAYMENTS HAVE GONE UP ON YOUR DEBT RELATED TO THE DEBT ISSUANCE.

BUT AS YOU COME DOWN TO THE VERY BOTTOM, YOU CAN SEE WE'RE STILL WITHIN TARGETED RESERVES AND YOU'LL SEE THOSE NUMBERS CHANGE IN EVERY SCENARIO.

ARE THESE 30 YEAR OR 20 YEAR BOND ISSUES? IT WOULD BE A 20 YEAR BOND ISSUANCE.

YEP. ALL RIGHT.

THANKS. I APPRECIATE IT FULLY.

I GET AHEAD OF MYSELF SOMETIMES.

SO SCENARIO THREE WOULD BE EFFECTIVELY TO KEEP THE $3.2 MILLION CASH CIP AND STILL DO A $13.3 MILLION DEBT ISSUANCE.

THIS WOULD REQUIRE A 18% DRAINAGE UTILITY FEE RATE INCREASE.

THE PROJECT THAT THIS EFFECTIVELY GETS US.

THE ONLY THING ADDED HERE IS PROJECT PLANNING AND DESIGN FOR LAWRENCE LAKE EXCAVATION AND THEN BANK STABILIZATION ALONG THE WEST SIDE OF LAWRENCE LAKE.

THE REASON THAT'S CALLED OUT IS SEVEN A IS JUST BECAUSE IT'S ONLY A PORTION OF WHAT WOULD BE THOSE PROJECTS EXCAVATION BEING WHAT COUNCILMAN SIMPSON YOU HAD ASKED ABOUT ON THAT PROPERTY AT LINDA DRIVE, THE BANK STABILIZATION.

THAT WAS AN EXISTING PROJECT THAT WAS FUNDED $1 MILLION.

I CAN'T REMEMBER WHAT YEAR.

CIP ALTHOUGH I THINK AT THIS POINT THE ESTIMATED COST TO DO THIS WOULD BE SIGNIFICANTLY HIGHER IF YOU'VE DRIVEN ALONG WESTERN PLAZA DRIVE OR THAT DAY WE HAD TO CLEAN UP.

THERE'S A CONCRETE SLOPE THERE.

IT'S PRETTY SIGNIFICANTLY ERODED UNDERNEATH THAT.

A LOT OF CONCRETE PANELS ARE STARTING TO FALL AND SLOUGH OFF.

IT HAS A PRETTY SERIOUS IMPACT ON WESTERN PLAZA DRIVE.

COULD AT SOME POINT ACTUALLY CAUSE THAT ROAD TO WASH OUT.

AND SO THE VISION WITH THIS BANK STABILIZATION WOULD BE TO REMOVE THAT CONCRETE SLOPE AND REPLACE IT WITH GABION MATTRESSES.

WHAT THAT IS, THOSE ARE THE ROCK FILLED MATTRESSES THAT YOU SEE, I THINK, ALONG THE WEST SIDE OF LAWRENCE LAKE.

THEY KIND OF MAKE A MORE VERTICAL FACE.

IT WOULD GAIN US A LITTLE BIT OF VOLUME, BUT MORE IMPORTANTLY, IT'S JUST A MUCH MORE STABLE SLOPE THERE THAT REQUIRES A LOT LESS MAINTENANCE THAN A CONCRETE SLOPE THAT BANK STABILIZATION HAS TO OCCUR BEFORE THE ROAD REPAIR CAN BE DONE.

OKAY. SO IF YOU WANT TO TALK ABOUT THE IMPACT THERE.

[00:15:01]

SO AGAIN, THIS IS ASSUMING 18% RATE INCREASE TO FUND A MILLION IN DEBT SERVICE, AND THAT'S THE TRADE OFF THERE TO BE ABLE TO FUND IT OUT OF RATES ONLY.

SO AS YOU COME UP THERE ON THE THIRD COLUMN ON THE FAR RIGHT, YOUR OPERATING INCOME NOW GOES UP TO A LITTLE OVER 10 MILLION.

YOUR BOND PROCEEDS WILL REMAIN A LITTLE OVER 13 MILLION.

THEN DOWN BELOW THIS TIME, YOU'RE GETTING ABOUT 16.5 MILLION IN CAPITAL BECAUSE WE'RE NOT USING THAT MILLION OF CASH FUNDED CAPITAL TO PAY FOR DEBT SERVICE.

NOW WE'RE RUNNING IT THROUGH RATE INCREASE INSTEAD.

SO IT PRODUCES 16 AND ONE HALF MILLION OF CAPITAL AND THEN YOUR PRINCIPAL AND INTEREST PAYMENTS HAVE RISEN TO ACCOMMODATE THAT DEBT ISSUANCE AS WELL.

COMING DOWN TO THE BOTTOM, YOU'LL SEE WE'RE WITHIN THE TARGETED RESERVES.

THE OTHER THING I WANTED TO NOTE IN THIS SCENARIO, AS WE BUILT IT OUT WITH THIS 18% RATE INCREASE, WHAT WE'RE PREDICTING THAT WILL TRANSLATE TO IN FUTURE YEARS IS STILL ABOUT TWO AND ONE HALF TO 2.7 MILLION IN CASH FUNDED CAPITAL GOING FORWARD.

THANKS. THEN THE LAST SCENARIO WE HAVE FOR YOU.

SO THIS PROJECT LIST IS EFFECTIVELY EVERY PROJECT WE IDENTIFIED AS A HIGH PRIORITY.

IT'S NOT EVERY PROJECT THAT'S IDENTIFIED IN A MASTER PLAN.

IF YOU ALL EVER WANTED TO SEE THAT, I'D BE HAPPY TO TO SHARE THAT.

OR I KNOW MR. MILLER OR MR. HARTMAN WOULD TOO. BUT IT'S EVERYONE THAT WE IDENTIFIED AS A PRIORITY.

AND SO THAT WOULD REQUIRE A $42.8 MILLION DEBT ISSUANCE, WHICH WOULD REQUIRE A 47.1% RATE INCREASE.

THE PROJECTS THAT GET ADDED HERE BEYOND WHAT YOU'VE SEEN ALREADY STARTS ABOUT HALFWAY DOWN THE PAGE WITH FULTON AND BELL.

15 INCH STORM SEWER.

THAT'S AN INTERSECTION THAT'S SIMILAR TO COLTER, AND HILLSIDE SEES A LOT OF STANDING WATER DURING RAIN EVENTS.

IT DOES GO AWAY ONCE THE RAIN STOPS, BUT IT CAUSES A LOT OF ISSUES FOR THE DRIVING PUBLIC AND ISSUES OF CARS BEING FLOODED OUT.

THAT WOULD EFFECTIVELY BE UPSIZING AN EXISTING STORM SEWER MAIN IN FULTON AND ADDING SOME INLETS TO HELP GET THE WATER IN THE STORM SEWER FASTER AT THAT INTERSECTION AND REDUCE THE DEPTH OF STANDING WATER.

THE NEXT ONE IS A VERY SIMILAR PROJECT.

OLSEN AND EMIL STORRS ESSER.

THE INTERSECTION OF WESTERN AND OLSEN IS ANOTHER AREA THAT GETS A LOT OF STANDING WATER DURING STORM EVENTS.

THIS ONE, THOUGH, IS A LITTLE BIT OF A LARGER, A LARGER PROJECT THAT GOES A LITTLE BIT FURTHER INTO THE NEIGHBORHOOD TO THE WEST, WHERE WE HAVE A LOT OF COMPLAINTS ABOUT WATER THAT GETS ABOVE THE TOP OF CURB DURING MINOR RAIN EVENTS.

IT GETS INTO PEOPLE'S GARAGES.

SO IT WOULD BE NOT ONLY UPSIZING STORM SEWER AND INLETS IN THE INTERSECTION OF OLSEN AND WESTERN, BUT ACTUALLY EXTENDING A STORM SEWER LINE INTO THE NEIGHBORHOOD.

WE'D HAVE TO EXACTLY IDENTIFY HOW FAR THAT IS, BUT TO TRY TO ADD SOME INLETS IN THE NEIGHBORHOOD AND DECREASE THE AMOUNT OF WATER THAT'S IN THE GUTTER, GETTING OVER THE TOP OF THE CURB AND INTO PEOPLE'S HOMES, I SHOULD SAY GARAGES.

THE NEXT PROJECT IS THAT LAWRENCE LAKE WEST SLOPE REPAIR.

SO WHERE WE HAD THE DESIGN PREVIOUSLY, THIS IS TO ACTUALLY CONSTRUCT THE REPAIR OF THAT.

THE NEXT PROJECT STORM SURGE FROM FARMERS TO I 27.

THIS IS THE FIRST PHASE OF A PROJECT THAT WOULD HELP US ALLEVIATE FLOODING ON THE WEST SIDE OF I 27.

BUT TO GET THERE, WE HAVE TO INSTALL A STORM SEWER IN FARMERS FROM THE INTERSECTION OF FARMERS IN WESTERN ALL THE WAY BACK TO I 27.

THIS WOULD ALSO, THOUGH, HELP OUT WITH SOME KIND OF LOCALIZED FLOODING IN THAT NEIGHBORHOOD.

CAMP LANE IS AN AREA WHERE WE GET A LOT OF COMPLAINTS BECAUSE THERE'S CURB AND GUTTER THAT ENDS AND IT GOES TO A DITCH AREA.

AND SO IF WE WERE ABLE TO INSTALL SOME STORM SEWER AND DRAINAGE INLETS IN THAT NEIGHBORHOOD, IT WOULD HELP WITH SOME FLOODING COMPLAINTS THAT WE GET WHERE WATER GETS IN PEOPLE'S GARAGES AND IN THEIR YARDS THERE AS WELL.

BUT IT'S THE FIRST PHASE OF A BIGGER PROJECT THAT WOULD CROSS I 27 WITH THE STORM SEWER LINE.

THE NEXT THREE PROJECTS ARE ALL RELATED TO DREDGING DREDGING OF LAKES IS SOMETHING THAT REALLY SHOULD BE A RECURRING CIP PROJECT.

WE SAW AT MCDONALD LAKE TWO YEARS AGO WHEN WE HAD TO REPLACE THE INLET OR INTAKE PIPE FOR THAT PUMP BECAUSE IT WASN'T FUNCTIONING ANYMORE.

WE COULD NOT FIND THE INTAKE STRUCTURE.

DRAINAGE UTILITY CREWS DUG DOWN PROBABLY ANYWHERE BETWEEN 3 TO 6FT OF MATERIAL OF SEDIMENT THAT HAD FILLED IN ABOVE THAT INTAKE STRUCTURE JUST FROM, YOU KNOW, DIRT AND DEBRIS THAT COMES IN FROM RAINS.

AND SO YOU LOSE CAPACITY IN YOUR LAKES OVER TIME.

THIS WOULD JUST BE A PROJECT TO HELP REMOVE THAT SEDIMENT, INCREASE THE CAPACITY OF THESE LAKES BACK TO WHAT THEY SHOULD BE.

THE NEXT PROJECT. LAWRENCE LAKE EXCAVATION.

THAT'S THE ONE THAT WE HAD TALKED ABOUT FOR 2600.

LINDA DRIVE TO EXCAVATE THAT PROPERTY AND INCREASE THE STORAGE CAPACITY OF LAWRENCE LAKE.

AND THEN THE LAST ONE, DRAINAGE CHANNEL FROM 58TH TO MCCARTY LAKE, JUST TO THE EAST OF NET PLEX.

THERE'S SOME APARTMENT BUILDINGS THERE.

THERE'S A DRAINAGE CHANNEL THAT RUNS IN BETWEEN THE NET PLEX BALL FIELDS OR WHERE THEY USED TO BE BALL FIELDS IN THE APARTMENT COMPLEX.

[00:20:02]

A LOT OF TIMES WATER BACKS OUT INTO 58TH, WHICH AGAIN CAUSES A BIG PROBLEM ON AN ARTERIAL WHEN YOU HAVE STANDING WATER.

AND SO THIS WOULD BE TO NOT ONLY IMPROVE THE DRAINAGE CHANNEL THERE, BUT EXCAVATE A PORTION OF MCCARTY LAKE TO ALLOW ALL THAT WATER TO GET OUT OF 58 FASTER DURING RAIN EVENTS. ANY QUESTIONS ABOUT THOSE NEW PROJECTS I WENT OVER BEFORE WE MOVE ON, IT'S A LOT ON THE DREDGING IS THE FOR THE PRICE ON THOSE IS THE REASON IT'S SO HIGH IS BECAUSE THEY NEED IT SO BADLY.

LIKE YOU SAID, THIS WAS A MAINTENANCE ISSUE IS REALLY WHAT IT IS.

IT IS. AND I THINK IT'S A LITTLE BIT OF TWO THINGS.

IT'S BECAUSE THEY NEED IT SO BADLY.

SO THERE IS A LOT OF MATERIAL THAT WOULD NEED TO BE REMOVED.

THE OTHER THING IS THE PROCESS YOU HAVE TO BRING IN.

TYPICALLY IT'S A BARGE OR SOMETHING LIKE THAT.

REMOVE THE MATERIAL, SET IT ASIDE SO THE WATER CAN DRAIN OUT OF IT AND THEN HAUL IT, WHICH WE ALL KNOW, HAULING MATERIALS, EXTREMELY EXPENSIVE PROCESS.

SO SO IF THIS WAS PUT ON, YOU SAID LIKE A CFP PROJECT, LIKE ON A NORMAL BASIS, WOULD WE SEE A REDUCTION IN THIS OR ARE WE LOOKING AT IT'S ABOUT THE SAME.

NO, I THINK YOU WOULD SEE A REDUCTION IN IT JUST BECAUSE THE AMOUNT OF MATERIAL BEING MOVED WOULD BE LESS.

THERE'S GOING TO BE SOME COSTS THAT ARE JUST LIKE ANY PROJECT.

REGARDLESS, THEY'RE KIND OF THE SAME.

BUT I THINK IF YOU GOT THIS ON A MORE REGULAR PROCESS, A GOOD EXAMPLE I THINK OF JUST PERSONALLY A PARK.

I WENT THERE WITH MY KIDS THIS PAST SATURDAY MORNING AND I LOOKED OUT AND SAW DUCKS STANDING IN THE MIDDLE OF MEADOW PARK.

AND WHEN YOU LOOK AT IT, YOU'RE LIKE, OH, THAT'S PROBABLY 3 OR 4FT DEEP.

NO, IT WAS PROBABLY ABOUT THAT DEEP.

YEAH. SO BUT IF IT WAS ON A MORE REGULAR PROCESS, I THINK IT WOULD BE QUITE A BIT CHEAPER.

THANK YOU. I'M GOING TO ASK YOU A QUESTION I'M SURE IS IMPOSSIBLE.

SO JUST GIVE ME A BALLPARK THE BEST YOU CAN.

THESE PROJECTS ON ON SCENARIO, FOR HOW LONG WOULD IT TAKE TO GET THROUGH ALL OF THESE PROJECTS? IT SEEMS LIKE THIS IS.

THERE'S MORE THAN A YEAR OR TWO.

YES. YEAH, DEFINITELY MORE THAN A YEAR.

TYPICALLY, YOU KNOW, THE STANDARD IS THAT WHEN YOU ISSUE THE DEBT, YOU COMPLETE THE PROJECT, HAVE MAJORITY OF THE FUNDS EXPENDED WITHIN A THREE YEAR WINDOW.

SO WE WOULD BREAK THIS UP INTO TWO.

TWO DEBT ISSUANCES AT MINIMUM, BECAUSE YOU HAVE THE DREDGING IS SOMETHING THAT CAN GO CONCURRENT WITH WITH THE FIRST SET OF PROJECTS.

SO THE ENGINEERING AND DESIGN, THAT'S WHY WE WOULD HAVE THE PLANNING AND DESIGN SET SEPARATE IT OUT UP THERE THAT YOU, YOU GET THAT PLANNING AND DESIGN GOING AND THEN YOU ISSUE THAT DEBT TIMELY RELATED TO THE PROJECT BEING READY TO GO.

SO AT LEAST SPLITTING IT INTO TWO THAT WINDOW.

I WOULD SAY THAT TWO RENDITIONS OF THAT WE CAN DO THAT.

A SIX YEAR WINDOW I THINK GETS ALL OF THESE COMPLETED.

SO ANOTHER THING, AND WE WOULD USE EXTERNAL CONSULTANTS ON MOST OF THESE.

SO I MIGHT ADD, IN THERE.

SO WE COULD AS WELL KIND OF PHASE OUT LIKE THE DEBT ISSUANCES OVER TIME AS NEEDED.

WE COULD EITHER ISSUE IT ALL UP FRONT OR WE COULD DO IT KIND OF STAGGERED OVER TIME, WHICH THEN ALSO MEANS WE COULD STAGGER RATE INCREASES IF WE WANTED, OR WE COULD CAPTURE THE RATE INCREASE AND DO SOME OTHER SMALL PROJECTS AND THEN ISSUE THE DEBT OVER TIME, OVER MAYBE A SERIES OF THREE YEARS OR SOMETHING.

AND SO WHERE IT'S MORE ALIGNED WITH THE TIMING OF THE COMPLETION OF THESE PROJECTS.

AND I WAS JUST GOING TO ADD THE KIND OF THE PLUS SIDE TO MULTI YEARS.

WE'RE GOING TO CONTINUE TO GO AFTER GRANTS.

BUT HAVING DEDICATED FUNDING AND DESIGNING PROJECTS, THAT MAKES YOU MORE COMPETITIVE IN THE GRANT APPLICATION PROCESS TO TRY AND MAYBE DO A BIGGER PROJECT OR JUST HELP OFFSET SOME OF THOSE COSTS.

THAT'S A GREAT POINT BECAUSE THEN IF WE DON'T HAVE DEBT SERVICE MAYBE ALL UPFRONT IN THE INITIAL YEAR, THAT BRINGS A LOT OF FLEXIBILITY ON SOME CASH FUNDED PROJECTS THAT WE COULD MATCH SOME PROJECTS OR SOME GRANT FUNDING WITH.

ANOTHER MAYBE BALLPARK, WHICH IS LET'S JUST SAY, FOR EXAMPLE, WE'RE JUST GOING TO WE'RE GOING TO HAVE TO PAY FOR ALL THESE ON SCENARIO FOUR THROUGH CASH. JUST WE'RE NOT GOING TO ISSUE DEBT.

NO TIME FRAME ON HOW LONG IF WE'RE OPERATING UNDER CASH TO PAY FOR THESE THINGS, HOW LONG WOULD IT TAKE TO BE ABLE TO GET.

YEAH. 42 DIVIDED BY 3.3 PLUS EVERY YEAR THAT GOES BY.

THESE PROJECTS COST MORE.

I'M GLAD YOU ALL CAN DO MATH IN YOUR HEAD.

YEP. YEAH. ASSUMING THAT NOTHING ELSE POPS UP IN BETWEEN NOW AND THEN.

OKAY. SO WE NEED TO TALK A LITTLE BIT ON ON ON A DIRECTION THAT WE MIGHT WANT TO TAKE.

THAT'LL GET US GOING DOWN A COUPLE DIFFERENT ROADS.

YOU'VE DONE A GREAT JOB OF PRESENTING SOME DIFFERENT SCENARIOS.

I KNOW IT WAS FAST. I KNOW IT'S A LOT.

BUT I THINK OVERALL WHAT YOU'RE PRESENTING ARE WHAT WE'RE GOING TO ACCEPT IS YOUR EXPERTISE IN POINTING OUT THE MOST NEEDED PROJECTS AND WHERE YOU

[00:25:02]

SO SO I WOULD BELIEVE THAT YOU AND KYLE AND YOUR TEAM ARE LOOKING AHEAD TO, WELL, IF WE GET TO HERE ON 58TH AND THAT LETS US GET THERE ON GEORGIA LATER AND SO NOW WE HAVE LESS DISTANCE TO GO LATER.

SO, UM, WE AS A COUNCIL NEED TO SOMEWHAT DECIDE, YOU KNOW, A 5% INCREASE OR A 10% INCREASE WOULD PUT US ON THE PATH OF, WELL, LET'S MAKE SMALL MARGINAL INCREASES AND LET'S PLAN ON DOING THEM EVERY YEAR.

LET'S GIVE YOU GUYS WHAT YOU CAN GET TO FOR THE NEXT YEAR.

LET'S TAKE GOOD CARE OF OUR OUR CUSTOMERS, BUT THEN LET'S TAKE A PATH OF YOU KNOW, WE KNOW WE'RE WE'RE MOVING THIS THIS DRAINAGE FEE UP EVERY YEAR.

EVERY YEAR WE'RE GOING TO TALK ABOUT IT.

THE OTHER PATH WOULD BE, YOU KNOW, WE'RE AT $3 AND LUBBOCK'S AT 12 AND I'M NOT LOOKING AT THE PAGE, SO WHATEVER THAT ACTUALLY IS.

UM, SO IF WE MOVE IT, YOU KNOW, TO 450, THAT'S $1.50 AND THAT'S GOING TO IMPACT THIS HOUSE THIS MUCH OR THIS COMMERCIAL PROPERTY, WE WOULD RATHER GET A BETTER LOOK AT THAT SO WE COULD SEE WHAT WE'RE DOING TO LIKE, SAY, A TYPICAL RETAILER.

BUT THAT WOULD BE A DIFFERENT PATH FOR US TO SAY, OKAY, LET'S SET YOU GUYS UP WITH A FIVE YEAR LOOK AND LET'S PUT ENOUGH INTO THIS TO WHERE WE'RE NOT COMING BACK FOR A DRAINAGE INCREASE NEXT YEAR WOULD BE OUR INTENTION.

WE'VE HAD THE WORST EVENT THAT ANYBODY SEEN SINCE LIKE 1981.

SO NOW WE KNOW HOW BAD IT CAN BE.

WE OBVIOUSLY HAVE THE OPPORTUNITY TO CAPITALIZE ON, OKAY, SOMEBODY ELSE DIDN'T FIX IT FOR US.

DO WE WANT TO FIX IT FOR THE NEXT MAYOR AND COUNCIL? AND DO WE WANT TO SET SOMEBODY UP FIVE, TEN YEARS FROM NOW WHERE THEY HAVE SOME REVOLVING ROLLOVER AND RECURRING CAPITAL, CASH FUNDED CAPITAL WHERE THEY CAN ACTUALLY GET TO SOME THINGS? SO I WOULD ASK FOR A SHORT DISCUSSION JUST WITH COUNCIL, WHICH WHICH ROAD.

IF YOU HAD TO GET ON ONE OR THE OTHER, WOULD YOU RATHER BE ON? YOU KNOW, LET'S PLAN ON DOING A 10% INCREASE EVERY YEAR OVER THE NEXT FIVE YEARS OR, OR LET'S DO A 50% INCREASE RIGHT NOW AND JUST BITE THE BULLET AND KNOW THIS IS WHAT IT'S GOING TO TAKE TO ACTUALLY FIX THIS PROBLEM.

SO. WE CAN SAY, LOOK, WE'RE RESPONSIBLE TO HAVE A PLAN IN PLACE THAT FUNCTIONS AND.

WHETHER WE WANT TO PAY FOR IT OR NOT.

HERE'S WHAT IT'S GOING TO COST TO DO IT.

SO I'LL LEAVE THAT OUT HERE ON THE TABLE FOR A MINUTE.

MAYOR, IF I MIGHT INTERJECT FOR JUST A SECOND, SINCE WE ARE BROADCASTING JUST BECAUSE PERCENTAGES, THE PERCENTAGES ARE BIG.

AND SO I WANT TO MAYBE PUT THAT AS A FRAME OF REFERENCE.

AND YOU I THINK YOU KIND OF TOUCHED ON IT A LITTLE BIT.

BUT ON THIS FINAL SCENARIO, WHICH WAS I THINK 47.1% RATE INCREASE, WHAT THAT TRANSLATES TO FOR A TYPICAL RESIDENT IS THEY WOULD GO FROM $3.36 A MONTH TO $4.94 A MONTH, SO JUST UNDER $5.

AND SO AS THE PERCENTAGE SOUNDS REALLY BIG, WE WANT TO MAKE SURE THAT THAT KIND OF IS A FRAME OF REFERENCE.

AND THAT ALSO TRANSLATES TO THE COMMERCIAL RATE THAT WOULD BE CHARGED.

TELL US WHAT THAT COMMERCIAL RATE LOOKS.

LET'S GIVE A LET'S GIVE AN AVERAGE.

SO LET'S SAY YOU HAVE A LET'S SAY YOU HAVE A 5000 SQUARE FOOT BUILDING AND IT SITS ON A HALF AN ACRE.

IS THIS BASED ON THE PER SQUARE FOOT IMPERVIOUS COVER? YES. YES, THAT'S CORRECT.

SO WE'RE ACTUALLY JUST CRUNCHING THE NUMBERS.

WE'RE GOING TO SAY WE HAVE 20,000FT² OF PARKING LOT AND IMPERVIOUS COVER ON A ON AN AVERAGE RETAIL.

SO IF I'M DOING THE MATH RIGHT AROUND $35 A MONTH.

SO YEAH, ABOUT $35 A MONTH WOULD BE THE WOULD IF WE DIDN'T TOUCH IT AT ALL.

WHAT'S MY BILL RIGHT NOW IS THAT $20 A MONTH IS THAT, YOU KNOW, ROUGHLY 47% LESS.

RIGHT. YEAH.

23. $24.

YEAH. 23. 24 TO $35.

SO IF I'M RUNNING AN ESTABLISHMENT HERE IN TOWN AND LET'S JUST TAKE THIS ADDRESS, LET'S JUST TAKE ONE OF OUR LOWER LEVEL.

LET'S SAY THAT I HAVE A COMMERCIAL BUSINESS SOMEWHERE AROUND FULTON AND BELL, AND SO I'M GOING TO REALIZE A $2 MILLION PROPERTY IMPROVEMENT SOMEWHERE OVER THERE THAT WOULD HELP ME AND MY CUSTOMERS AND PATRONS, YOU KNOW, IN AN EVENT.

AND I'M GOING TO GO FROM PAYING, SAY, $23 A MONTH TO $35 A MONTH, ARE THOSE NUMBERS BETTER TO CLARIFY LIKE THE RECORD? YEAH, I THINK THAT THAT MAKES MORE SENSE TO.

YEAH. TO A BUSINESS OWNER OR AND THEN TO OUR RESIDENTIAL CUSTOMERS GOING FROM ABOUT 336 $3.36 PER MONTH TO JUST UNDER

[00:30:03]

LET'S SAY THAT I'M A LARGE CHURCH.

LET'S SAY THAT I SIT ON, I DON'T KNOW, FIVE ACRES OF OF WELL, AND I DON'T EVEN KNOW HOW MANY ACRES OF PARKING.

LET'S SAY I HAVE TWO ACRES OF PARKING, 97,000FT².

WHAT DOES THAT RUN ME WITH? THE WITH THE INCREASE.

I MEAN, DID YOU SAY, LET'S SAY 90,000FT² OF IMPERVIOUS COVER IS WHAT MY BILL IS? IT'S ABOUT 158, $159.

AND THE AND THAT'S THE INCREASED RATE.

THAT'S THE INCREASED RATE.

YEP. AND THAT'S MY TOTAL BILL PER MONTH.

AND WHAT WOULD MY BILL HAVE BEEN? A LITTLE OVER 100.

AROUND 95, 95, SO AROUND $50 A MONTH.

IF I IF I HAVE, LET'S SAY, A 10,000 MEMBER CHURCH.

OKAY, SO BACK TO COUNCIL.

REALLY APPRECIATE THAT MR..

WHAT WHICH WHICH ROAD IF WE HAD TO TAKE ONE AND I'M NOT SAYING WE DO BUT BUT IT WOULD BE SMART TO AT LEAST GET A DIRECTION FOR HOW WE WANT TO PLAN.

CAN I ASK ONE MORE QUESTION? OKAY. BEFORE WE GET TO THE.

YES, SIR. KIND OF.

AND MAYBE THIS WOULD BE FOR STAFF.

SO KIND OF WALK ME THROUGH.

OKAY, PROS AND CONS OF DOING 5%, 10% A YEAR OVER LONGER TERM OR YOU KNOW, AND THE PROS AND CONS OF 47% AT ONE TIME BECAUSE I CAN THINK OF ONE REAL BIG CON TO DOING 47% AT ONE TIME, I'M PAYING YOU A WHOLE LOT MORE MONEY THAT I REALLY DON'T WANT TO PAY YOU.

AND IT'S ALL COMING AT ONCE.

SO, I MEAN, BUT FROM THE PROJECT STANDPOINT, WHAT ARE THE PROS AND CONS OF DOING 5 TO 10% A YEAR VERSUS ARE THERE ANY SIGNIFICANT PROS THAT YOU WOULD SAY, MAN, WE ARE GOING TO GET SO MUCH MORE OUT OF THIS, IT'S GOING TO BE SO MUCH MORE BENEFIT IF WE DO THE INCREASE AT ONE TIME.

SO I'LL START YOU CAN DO THE FINANCIAL SIDE FROM A FROM A PROJECT MANAGEMENT SIDE, THE 5% A YEAR LIKE THE PROJECT PLANNING AND DESIGN PROJECT ON LAWRENCE LAKE EXCAVATION, THEN THAT 5% OR THAT INCREMENTAL INCREASE THAT YOU PLAN EACH YEAR, IT HAS TO GO THE NEXT YEAR FOR THE PROJECT TO GO.

AND THEN YOU HAVE A DELAY BETWEEN PLANNING AND DESIGN AND CONSTRUCTION.

SO THE PROJECT'S PLANNING DESIGN GOES AND THEN YOU HAVE TO WAIT TILL YOU GET THE FUNDING FOR THE PROJECT TO BID AND AWARD THE PROJECT.

SO THERE'S A TIME DELAY BETWEEN PLANNING AND DESIGN THAT IF YOU WENT THE MASTER, THE BIG ONE THAT'S A PRO, YOU GET TO GO DESIGN IT, GO BID IT AND GO MOVE FORWARD AS TIMELY AS YOU CAN.

SO THE PROJECT MANAGEMENT ITSELF IS MORE CONNECTED AND MORE CONSISTENT IN THE BIG ISSUANCE IN THE IN THE EACH YEAR.

WE DID THAT OVER LIKE A TEN YEAR WINDOW IN UTILITIES WHERE WE HAD THIS ONGOING RATE INCREASE.

AND IT IT WORKS.

YOU CAN WORK THIS EITHER WAY COUNCIL MEMBER IT.

BUT THE BUT CONSISTENCY IN YOUR PROJECT YOU WILL SEE MORE RESULTS QUICKER WITH THE BIG ISSUANCE AND ABLE TO TO MOVE FORWARD THAT WAY. OTHER THINGS YOU'LL GET BID EFFICIENCIES ON ON THIS AS WE GO THROUGH.

WHEN YOU HAVE A FIVE YEAR TEN YEAR WINDOW OF 5%, YOU WILL SEE INFLATION LIMIT WHAT YOU'RE ABLE TO ACCOMPLISH BECAUSE YOU CAN GO AHEAD AND GET THESE DESIGNED AND AWARDED. SO INFLATIONARY COMPONENTS IS A IS A BIG PART OF WHY YOU WOULD WANT TO MOVE FORWARD WITH A LARGE ONE VERSUS A SMALL ONE.

THERE'S THERE IT IS MORE PALATABLE TO THE PUBLIC, TYPICALLY WITH THE SMALLER INCREASES INCREMENTAL AND THEY GET TO SEE THE CORRELATION OF THE PROJECT WITH WITH THAT SUCCESS.

HOWEVER, THEY ALSO SEE THE GAPS IN TIME.

ANYTHING YOU'D ADD TO THAT? FOR TWO YEARS FROM NOW. OH, YEAH.

YOU TRANSITION IN OUR WORLD.

WE TRANSITION IN COUNCIL.

I FORGOT ABOUT THAT ONE.

YOU DO HAVE IN OUR WORLD WHERE ALL OF YOU ARE UP FOR ELECTION EVERY TWO YEARS.

THERE IS THAT OPPORTUNITY FOR TRANSITION LIKE WE JUST EXPERIENCED.

AND I THINK TO CHIME IN ON THAT, YOU KNOW, YOU CAN WE CAN SUGGEST A PLAN AND YOU ALL CAN SAY, YEAH, THAT LET'S SAY THAT FIVE YEAR PLAN SOUNDS GREAT.

BUT TO THAT POINT IT TAKES MULTIPLE COUNCILS BUYING INTO THAT EXACT SAME VISION IN ORDER TO KEEP THAT PLAN IN PLACE.

THE OTHER THING IS, FROM A FINANCIAL STANDPOINT, IF YOU ARE LOOKING TO DO MAYBE A DEBT ISSUANCE ALL AT ONCE, YOU'RE LOCKING IN AN INTEREST RATE.

AND I KNOW INTEREST RATES HAVE BEEN A LITTLE VOLATILE THE LAST COUPLE OF YEARS, WE'RE STILL ABLE TO ACHIEVE A PRETTY GOOD INTEREST RATE AT THIS POINT IN TIME. AND SO YOU'RE LOCKING IN SOME CERTAINTY THERE.

NOW YOU'RE GAMBLING BECAUSE, YOU KNOW, INTEREST RATES COULD GO DOWN AT SOME POINT.

HANG ON. YEAH, BECAUSE I WAS REPRIMANDED HERE A COUPLE OF YEARS AGO FOR USING THE WORD GAMBLE.

[00:35:03]

I'M OVER IT. NO. OKAY.

YEAH, YEAH, YEAH.

HANG ON. I WANT TO.

I WANT TO ASK. YES, I WANT TO MAKE SURE I'M GOOD.

YEAH. NOW INTEREST RATES GO UP, AND I DIDN'T LOCK IN MY INTEREST RATE.

THAT'S A GAMBLE.

YEAH. RIGHT. THAT'S CORRECT.

BECAUSE I'M GOING TO PAY FOR THAT, AND I DON'T HAVE AN OPTION TO LOCK IT IN LOWER ANYMORE.

BUT IF I LOCK IN A FIVE YEAR LOOK AND INTEREST RATES COME DOWN, I CAN ALWAYS REFUND THAT, RIGHT? YOU'RE EXACTLY RIGHT. THAT'S WHERE I WAS HEADING NEXT.

SO WE WERE ALWAYS LOOKING FOR THOSE OPPORTUNITIES.

IF INTEREST RATES START COMING DOWN TO TO REFUND AND TO SAVE DOLLARS THAT WE CAN PUT BACK INTO THE FUND THAT COULD POSSIBLY GO INTO ADDITIONAL PROJECTS.

SO, YES, YOU'RE EXACTLY RIGHT.

AND THANK YOU FOR CLARIFYING.

WE DON'T GAMBLE AROUND HERE.

NO, I LIKE THE FACT THAT WE CAN JUST POINT THAT OUT, BECAUSE WHAT YOU'RE SAYING IS, IS IS CORRECT.

WHAT THEY CAN HEAR, THOUGH, CAN BE INCORRECT.

AND SO JUST TAKING A MOMENT TO TO HIT THAT RIGHT, THAT NAIL RIGHT ON THE HEAD OF IF WE LOCK IN NOW AN INTEREST RATES DOUBLE THEN THEN WE LOOK REALLY SMART YOU KNOW LONG TERM PROTECTED BUT IF WE LOCK IN RIGHT NOW AND INTEREST RATES COME BACK DOWN, SAY 50%, IT DIDN'T HURT US AT ALL.

WE DIDN'T SPEND $1 THAT WE DIDN'T HAVE TO.

AND REFUNDING THAT RIGHT.

OR DOES IT COST A REFUND? WELL, THERE'S A SMALL COST, BUT WE ALWAYS ARE ACHIEVING A LONG TERM SAVINGS.

AND SO AND THOSE ARE STRUCTURED IN A WAY THEY'RE NOT QUITE LIKE YOUR HOME MORTGAGE WHERE YOU CAN REFINANCE AT ANY TIME.

BUT THERE'S THERE'S PERIODS OF TIME WHERE YOU CAN LOOK AT THAT, AND WE'RE ALWAYS TAKING ADVANTAGE OF THAT.

BUT AGAIN, WITH OUR HIGH BOND RATINGS, WE'RE STILL IN A FAVORABLE POSITION AT THIS POINT IN TIME TO GET A GOOD INTEREST RATE.

SO I WANT TO PIGGYBACK ON THAT INTEREST RATE DISCUSSION.

SO THERE IS A NEW STATEWIDE PROGRAM THAT KOLLER ARE INTEGRAL PART OF, AND THAT IS THE STATE FLOOD PLANNING GROUP.

IT WAS CREATED THREE YEARS AGO.

THIS IS UNDER THE TEXAS WATER DEVELOPMENT BOARD.

AND SO REGION ONE, I WAS A CHAIRMAN, NOW KYLE'S CHAIRMAN, AND THIS IS A REGIONAL FLOOD PLANNING GROUP THAT'S PART OF THE STATE FLOOD PLANNING GROUP.

THAT IS THE VEHICLE THAT THE FEDERAL FUNDS AND THE STATE FUNDS ARE NOW GOING TO BE MADE AVAILABLE TO LOCAL GOVERNMENT ENTITIES FOR PROJECTS.

SO IT'S IN IT'S JUST IN CREATION.

WE JUST APPROVED THE FIRST REGIONAL FLOOD PLAN AND WE'RE KYLE'S LEADING IT ON THE SECOND FLOOD PLAN.

BUT WHAT THAT DOES IS THAT OPENS THE DOOR FOR SOME OF THESE TO BE PLACED IN THERE.

THAT INTEREST RATE THAT LAURA IS TALKING ABOUT, YOU TAKE WE'VE DONE THIS.

WE PARTICIPATED IN THE STATE WATER PLAN PROJECTS OVER THE LAST 15 YEARS TO THE TUNE OF ALMOST $200 MILLION.

BUT SOME OF THE EXAMPLES OF WHAT WE WERE ABLE TO ACCOMPLISH WITH INVOLVING IN THE STATE WATER PLAN AND THIS STATE FLOOD PLAN IS MIMICKED RIGHT AFTER THAT.

THE ARMY PROJECT THAT'S CURRENTLY GOING ON.

YOU LAYER YOUR BOND RATING ON TOP OF THE STATE'S BOND RATING, AND THAT PROJECT CAME IN AT 0% INTEREST WITH THAT SUBSIDY.

SO SOME OF THESE PROJECTS CAN GO INTO THAT.

THIS IS A NEW AVENUE TO FUND AND YOU SEE THAT.

SO WHILE INTEREST RATES HAVE GONE UP, THERE ARE AVENUES TO LOOK AT THESE.

NOW THAT TAKES TIME.

THAT'S WHY I THINK THE 5 TO 6 YEAR WINDOW ON SOME OF THESE BECAUSE WE COULD IDENTIFY SOME OF THOSE PUT IN THOSE APPLICATIONS.

YOU'LL HEAR THE TERM IN TEXAS WATER DEVELOPMENT BOARD LANGUAGE REVOLVING FUNDS, AND THAT'S WHERE THEY ISSUE THEY AWARD PROJECTS TO ENTITIES, BUT THE PAYMENTS BACK TO THOSE GO INTO SUBSEQUENT AWARDS.

THAT'S THE REVOLVING PART.

SO WHEN THE FEDERAL GOVERNMENT PUTS IN A COUPLE OF BILLION DOLLARS INTO THE STATE OF TEXAS, THEY PUT IT INTO A REVOLVING FUND.

IT JUST CONTINUES TO FUND INFRASTRUCTURE WITHIN THE STATE OF TEXAS.

AND THAT'S HOW WE WERE ABLE TO DO THAT.

WE DID THE POTTER COUNTY FIELD IN 2009.

WE DID THAT HIGH SERVICE PUMP STATION.

BEFORE THAT, WE DID THE PIPELINE THAT PROVIDED THAT WATER TO ALL OF THE CITIZENS.

WITH THAT, WE DID THAT SEWER LINE DOWN GEORGIA TO FINISH THAT LIFT STATION WITH THOSE REVOLVING FUNDS.

THIS IS AN OPPORTUNITY THAT IS NOW GOING TO EXIST THAT DIDN'T EXIST PRIOR TO NOW.

THAT WOULD ALSO BE ANOTHER ADVANTAGE OF DOING IT ALL AT ONCE, SUCH THAT WE COULD BUNDLE THESE AND PUT SOME OF THOSE IN.

I'M NOT GUARANTEEING SUCCESS.

IT'S LIKE THE GRANT PROGRAM, BUT I WOULD HOPE THAT THE HISTORICAL TRACK OF 200 MILLION SUCCESS IN WATER AND THE LEADERSHIP OF US BEING INVOLVED I THINK IS GOING TO LEAD US.

I WILL SAY THAT IN REGION ONE OUT OF THE TOP 25, WE HAD FIVE WE HAD FIVE PROJECTS IN THE TOP 25IN THE STATE.

SO I WOULD JUST SAY THAT THERE'S OPPORTUNITIES THERE, ONE OF WHICH.

IS OURS, WHICH IS TANKER, WHICH IS THAT'S WHY TANKER IS NOT ON THIS LIST, BECAUSE WE BELIEVE THAT WE'RE GOING TO HAVE SUCCESS THROUGH THAT.

[00:40:03]

SO THAT WAS JUST SO YOU'RE AWARE OF THAT FUNDING AND THAT FINANCIAL.

BUT WHEN YOU BORROW THROUGH THOSE STATE REVOLVING FUNDS, YOU LAYER YOUR BOND RATING ON TOP OF THE STATE TO GET A SUBSIDIZED LOWER INTEREST.

OKAY. SO WE WE DID A GOOD JOB FROM YOUR SIDE OF KIND OF LISTING ALL THE PROS.

I KNOW COUNCILMAN SIMPSON SAID PROS AND CONS.

SO LIKE THE CONS OF THIS ARE.

FROM YOUR SIDE.

I MEAN, I KNOW WHAT IT IS FROM COUNCIL IN THE WAY OF LIKE, OKAY, WE'VE GOT TO GO TO OUR CUSTOMER AND TELL THEM, HEY, IT COSTS MONEY FOR US TO ACTUALLY DO THIS JOB, RIGHT? SO WHAT WHAT IS WHAT ARE THE CONS ON YOUR SIDE? THERE IT IS THE CHALLENGE OF GETTING THE PROJECTS DONE TIMELY.

WHEN YOU HAVE A PROJECT OF THIS MAGNITUDE, THAT IS A CHALLENGE.

I THINK WE'RE UP TO THAT CHALLENGE, BUT THAT DOES COME WITH THE FOLLOW UP SCRUTINY OF DURING, DURING DESIGN AND PLANNING AND DESIGN. THERE DOES GET A WINDOW WHERE THE PUBLIC GETS FRUSTRATED THAT WE'RE NOT MOVING QUICKLY.

OKAY. THAT'S THE BIGGEST ONE.

THE OTHER ONE IS THAT YOU IMPACT MULTIPLE NEIGHBORHOODS AT THE SAME TIME.

SO THERE'S A COMMUNICATION COMPONENT AND THERE'S PUBLIC ENGAGEMENT COMPONENT THAT IS MUCH MORE CHALLENGING THAN ONE PROJECT AT A TIME.

I THINK YOU SAW WITH WHAT WE WERE DOING WITH COMMUNICATIONS, WE'RE IMPROVING IN THAT AREA EVERY DAY, BUT THAT YOU IMPACT YOUR COMMUNITY.

YOU WILL HAVE SOCIAL MEDIA SAY, AND THERE'S CONES ALL OVER THE CITY WHEN WE DO MULTIPLE PROJECTS AT THE SAME TIME.

ANY OTHER ONE. SO I WOULD ALSO SAY I THINK SOMETHING THAT WE ALL HEARD DURING THE RECENT FLOOD EVENT IS, YOU KNOW, WE'RE PAYING THIS MONTHLY FEE AND, YOU KNOW, WE'RE STILL FLOODING, YOU KNOW, OR WE'RE STILL IMPACTED OR MY NEIGHBORHOOD IS WORSE THAN OTHERS.

AND THAT'S, I THINK, GOING TO CONTINUE TO A CERTAIN EXTENT BECAUSE THIS DOESN'T NECESSARILY TOUCH EVERY SQUARE INCH OF DRAINAGE PROBLEMS IN AMARILLO.

AND SO OUR CITIZENS WOULD BE PAYING THIS INCREASED AMOUNT.

AND SO I DO THINK THAT THERE COULD BE, YOU KNOW, SOME CONCERN, SOME FRUSTRATION THAT COME ALONG WITH IT.

WHY ARE THESE PROJECTS BEING ADDRESSED? BUT MY AREA IS NOT SOME OF THAT KIND OF STUFF BECAUSE FLOYD OR ALLEN EITHER WAY.

SO WITH THESE ESTIMATES, I GET IT.

IT'S AN ESTIMATE, RIGHT? WELL, OBVIOUSLY, WE HAVE NO I'M NOT GONNA SAY WE HAVE NO IDEA, BUT THIS IS A GUESS.

WHAT DO WE HAVE BUILT IN HERE? I MEAN, WHAT ARE WE LOOKING AT PROJECT WISE? HOW MUCH IS YOUR CONTINGENCY? ABOUT 13. OKAY.

SO A COUPLE OF THINGS.

SO, YOU KNOW, WE LOOKED AT BOTH.

THERE'S TWO THINGS IN CONTINGENCY AND AND WE'VE LEARNED A LOT THROUGH OUR PREVIOUS BOND ISSUANCES.

THAT CONTINGENCY ON DESIGN AND CONTINGENCY ON CONSTRUCTION HAVE BEEN VASTLY DIFFERENT SINCE CONTINGENCY ON DESIGN HAS BEEN RELATIVELY PREDICTABLE.

IN GENERAL, WE'RE WE'RE WE'RE TALKING ABOUT 13 TO 18% FOR A DESIGN CONTRACT IF WE'RE GOING EXTERNAL DESIGN ON PROJECTS.

SO JUST IN GENERAL, THAT'S THAT'S BUILT IN.

AND THEN CONSTRUCTION HAS GOSH, HAS REALLY JUST BEEN A CRAPSHOOT.

YOU KNOW, I HAVE HAD PROJECTS THAT HAVE SEEN 30 TO 32% COST INCREASES ACROSS THE BOARD.

WE'RE STARTING TO SEE THAT RELAX JUST A LITTLE BIT.

AND SO I HOPE THAT THAT'S A I HOPE THAT THAT'S A CONTINUING TREND.

WHEN WE LOOKED AT THESE PROJECTS, THOUGH, FOR FOR THIS ESTIMATION, WE BROUGHT THEM TO CURRENT DOLLARS IS EFFECTIVELY WHAT WE DID.

WHAT WOULD IT COST US TO BUILD THESE PROJECTS TODAY? WE DIDN'T BUILD IN A SIX OR AN EIGHT OR A TEN YEAR CONTINGENCY WINDOW INFLATING THESE CONSTRUCTION DOLLARS.

AND AND I CAN, YOU KNOW, WE COULD BE DIRECTED TO DO SO.

BUT THAT'S NOT WHAT THESE NUMBERS REPRESENT.

SO THIS IS TODAY IF WE STARTED THESE PROJECTS TODAY, THAT'S WHAT THESE DOLLARS ARE WITHIN.

I MEAN, THERE'S GOT TO BE SOME THERE'S SOME CONTINGENCY, BUT WE DIDN'T DO AN INFLATIONARY FACTOR.

THERE'S CONTINGENCY IN THE PROJECT.

LIKE MAYBE I MISSED A VALVE OR I, YOU KNOW, NEED A LITTLE EXTRA PIPE.

THERE'S THERE'S, YOU KNOW, THERE'S CONTINGENCY IN THE PROJECT.

BUT WE DID NOT PUT AN INFLATIONARY VALUE FOR TIME.

OKAY. OKAY.

THANK YOU. BUT WHEN I SEE SO GOING BACK TO THE 5 TO 10 YEAR PLAN, I SEE THE CONS THAT I HAVE HEARD TODAY IS YOU COULD SAVINGS COULD

[00:45:01]

SOME OF THE THINGS YOU'RE TALKING ABOUT VOLATILITY WITH FUTURE COUNCILS.

IT WOULD TAKE US LONGER TO GET THINGS.

IF DIFFERENT COUNCILS HAD DIFFERENT APPROACHES, COST COULD GO UP AND INTEREST RATES COULD GO UP.

I DON'T USE THE G WORD. I USE EDUCATED GUESSING.

THAT'S WHAT MY KEYWORDS ARE.

I MEAN, WE CAN EDUCATE, YOU KNOW, I DON'T KNOW.

YOU COULD YOU COULD YOU COULD EDUCATE A GUEST RIGHT NOW THAT WELL, I DON'T KNOW WHETHER INTEREST RATES WILL GO UP OR DOWN.

I MEAN THEY'VE JUST GONE UP RECENTLY.

AND I AGREE WITH THE MAYOR, YOU COULD DO A REFINANCE.

BUT BUT ANY OTHER CONS YOU SEE OF TAKING A LONGER SHORT TERM STRATEGY? I MEAN. WELL YEAH, 11I KNOW OF IS STAFF TURNOVER.

OKAY. SO THE LEADERSHIP.

BUT THERE'S SOLID LEADERSHIP THAT CAN CARRY THIS FORWARD, THIS PLAN AND THAT THAT IMPACTS THIS PRIORITY LIST.

WHEN LEADERSHIP CHANGES IN ALL OF OUR DEPARTMENTS, THAT IMPACTS THIS PRIORITY LIST BECAUSE THEY HAVE YOU KNOW, SOMETIMES YOU BRING IT FROM BELOW AND YOU HAVE THAT INSTITUTIONAL KNOWLEDGE OF WHAT THEY WERE FACING OUT THERE.

SOMETIMES YOU BRING SOMEBODY FROM THE OUTSIDE, SO IT JUST HAS A DIFFERENT VIEW OF THIS PRIORITY AND THAT'S THE TRANSITION AND COUNCIL AS WELL.

WHAT IS THAT PRIORITY? AND THIS LIST CHANGE.

THERE'LL BE THE QUESTION WHY ARE WE DOING THAT PROJECT? BUT TRANSITION AND STAFF CREATES A CHALLENGE AND CONTINUITY IN PROJECT MANAGEMENT.

I THINK THIS WOULD BE A GOOD TIME TO LET YOU ALL KNOW ABOUT SOME PERSONNEL CHANGES WE HAVE GOING ON.

WHEN FLOYD REFERENCES LACK OF CONTINUITY OF STAFF AND SOMETHING THAT WOULD BE IMPORTANT TO CAPITALIZE ON PEOPLE WHEN WE HAVE THEM.

WE'RE I'VE BEEN WORKING ON ALAN NOTIFIED US AT THE START OF THE MONTH THAT HE WAS GOING TO BE TAKEN.

I DIDN'T TALK TO YOU ABOUT THIS.

I APOLOGIZE RIGHT NOW.

BUT IT'S IT'S GOING TO HAVE TO BE DISCUSSED AT SOME POINT.

TALK TO US AT THE START OF THE MONTH ABOUT MOVING TAKING A PRIVATE SECTOR OPPORTUNITY ENGINEERING HERE IN THE CITY OF AMARILLO.

ALAN'S BIG DEAL. I MEAN, HE'S A REALLY, REALLY GOOD ENGINEER.

SO I TOOK A NUMBER OF DAYS AND A NUMBER OF RUNS AT AND FLOYD DID AS WELL TO TO BUT, BUT IT'S JUST A GOOD MOVE FOR HIS FAMILY AND A GOOD MOVE FOR HIS FUTURE.

BUT HE WILL HE WILL BE GONE FROM THE CITY OR GONE FROM THE ORGANIZATION AS OF AUGUST I'M SORRY, SEPTEMBER 1ST.

SO, I MEAN, SUCH A GOOD ENGINEER.

YOU KNOW, HE'S GOT A GREAT, YOU KNOW, PEDIGREE, GREAT ENGINEERING PEDIGREE, OKLAHOMA STATE AND NAVY SEABEE COMMANDER, YOU KNOW, A LOT A LOT OF REALLY COOL LEADERSHIP ROLES IN THE NAVY.

AND HE'S BEEN WITH US SINCE 2016, 2021 AS ASSISTANT DIRECTOR AND THEN OBVIOUSLY EARLIER THIS YEAR, INTERIM DIRECTOR.

SO THAT'S GOING TO BE A BIG LOSS FOR US.

WE'LL REPLACE HIM WITH WITH WITH AN EXCELLENT PERSON LIKE WE DO.

NO, NO, NO. NO OFFENSE TO ALAN AND BUT I WANTED YOU ALL TO BE AWARE OF THAT.

YEAH, THAT WAS IT.

NO, NOT AT ALL. I WOULD WANT TO ADD.

ADD SOMETHING TO THAT ALSO. YEAH.

NO, NONE OF THE NONE OF THE NEW NEWLY ELECTED COUNCIL MEMBERS ARE FEELING LIKE THIS IS ANYTHING THAT WE'VE DONE.

WE HOPE THAT IT'S THE OPPOSITE.

LIKE, WE REALLY WOULD LIKE TO TALK YOU INTO RECONSIDERING, YOU KNOW, I MEAN, IT'S NEVER TOO LATE TO STAY NOW.

THE OTHER THE OTHER FIRM IS GOING TO BE REALLY DISAPPOINTED.

BUT WHAT YOU'VE DEALT WITH, WHAT YOU'VE BEEN DEALING WITH, I MEAN, IT TAKES A LONG TIME TO TURN THIS BIG OF A SHIP.

BUT MAN, WE'RE TURNING IT ONE DEGREE AT A TIME.

AND AND SO THIS IS TWOFOLD FOR ME.

ONE, I REALLY DON'T WANT TO LOSE YOU, YOU KNOW, AND WE'D LOVE TO KEEP YOU.

AND AND IF THERE'S SOMETHING THAT CAN BE CHANGED THAT COULD MAKE THAT HAPPEN, WE WOULD DEFINITELY LOOK AT THAT.

I'M NOT PUTTING YOU ON THE SPOT HERE TODAY TO TELL ME WHY YOU'RE NOT GOING TO STAY.

BUT WE ALSO WOULD NEVER, AS AN ORGANIZATION, WANT TO LIMIT YOU FROM GOING WHERE YOU WANT TO GO.

AND SO IF THAT'S A MOVE UP AND A MOVE IN A BETTER DIRECTION FOR YOU, YOUR FAMILY OR YOUR CAREER CHOICE, THEN WE SUPPORT THAT.

HOWEVER, IT PROBABLY COMES BACK TO COUNCILMAN SIMPSON'S QUESTION OF WHY MAKE A BIG JUMP NOW? WHY MOVE THIS NOW? WELL, I HAVE MY LEAD OVER HERE.

WHO HAS THE MOST INSTITUTIONAL KNOWLEDGE OF ANYONE THAT I'VE BEEN ABLE TO WORK WITH TELLING ME THAT, YOU KNOW, MAYBE AS SOON AS TWO YEARS, MAYBE HE'LL HANG OUT 3 OR 4. WE DON'T REALLY KNOW.

I NEED TO CAPITALIZE ON WHAT I HAVE BEFORE WE HAVE TO SPEND MORE TIME EDUCATING AND DEVELOPING THOSE KEY ROLES. AND SO, LIKE JUST SAYING IT OUT LOUD, WE NEED YOU.

WE NEED YOU TO STAY.

THINGS ARE CHANGING.

[00:50:01]

BUT IF YOU GO, MAN, WE WE UNDERSTAND AND WE WANT WHAT'S BEST FOR YOU.

AND THEN WE'LL LOOK REAL HARD AT FINDING THE NEXT GUY.

BUT AS WE PLAN FOR A FIVE YEAR OUTLOOK, I ONLY HAVE, LET'S SAY, AT LEAST TWO YEARS, RIGHT.

I CAN I SAY AT LEAST TWO YEARS WITH YOU, FLOYD.

OKAY. SO I ONLY HAVE AT LEAST THREE YEARS WITH FLOYD.

SO THREE YEARS IS WHAT HE'S COMMITTED TO HERE TODAY AS WE LIVE STREAM.

SO, YOU KNOW, PLEASE CONTINUE TO THINK THROUGH THIS DECISION AS AS YOU MOVE TOWARDS THAT AND THEN WE'RE GOING TO SUPPORT YOU WHATEVER'S BEST FOR YOU. BUT BUT JUST KNOW IT'S A IT'S A BIG LOSS FOR US.

I APPRECIATE YOU SAYING THAT. AND I WON'T JUST SIT HERE SILENTLY AND AND NOT RESPOND IF THERE WAS SOMETHING THAT HAD HAPPENED THAT WAS DRIVING ME AWAY FROM THE ORGANIZATION, YOU WOULD KNOW ABOUT IT.

I TALKED TO FLOYD AND JARED BOTH ABOUT THAT.

I'M NOT GOING TO JUST.

NO, I'M. I'M FINE.

I'M LEAVING. EVERYTHING'S OKAY, BUT I'M LEAVING.

THAT'S NOT THE CASE AT ALL.

IN FACT, I'VE BEEN EXTREMELY BLESSED TO WORK WITH ALL OF YOU FOR A SHORT AMOUNT OF TIME, BUT ESPECIALLY WITH FLOYD AND JARED FOR THE TIME THAT I HAVE.

THERE'S NOTHING THAT'S HAPPENED.

THIS IS JUST AN OPPORTUNITY FOR MYSELF AND MY FAMILY THAT THAT I NEED TO TAKE.

LIKE I SAID, IF THERE WAS AN ISSUE, YOU WOULD KNOW.

I'M NOT THE KIND OF MAN TO JUST GO AWAY AND NOT SAY ANYTHING.

YOU WOULD HEAR ABOUT IT.

AND ABSOLUTELY, IF YOU WANT TO MEET SOME TIME AND TALK JUST IN GENERAL ABOUT ANYTHING, MY EXPERIENCES HERE AND MY TIME HERE, LESSONS I'VE LEARNED, I'D BE MORE THAN HAPPY TO DO THAT. NO PROBLEM AT ALL.

YEAH. YOU'RE NOT LEAVING AMARILLO? NO, NOT AT ALL. NO.

AND THAT'S WHAT IS MOST IMPORTANT TO ME RIGHT NOW IS TO STAY IN AMARILLO.

I HAVE A FAMILY HERE.

I HAVE ROOTS HERE. AND SO THAT'S MY PRIORITY IS STAYING IN AMARILLO AND I'LL STILL BE A CIVIL ENGINEER CONTRIBUTING TO THE GROWTH AND AND PROSPERITY OF THIS COMMUNITY.

FOR THE BORDER. YOU'RE STUCK.

ABSOLUTELY. WELL, WE APPRECIATE THE CANDID CONVERSATION HERE.

AND I KNOW IT'S A PUBLIC MEETING AND THIS IS A GOOD WAY TO JUST DO BUSINESS.

AND SO IT'S ALL OUT THERE AND THEY'RE HEARING IT.

AND YOU'RE YOU'RE HEARING WHERE WE'RE AT AS WELL.

AND WE APPRECIATE ALL YOU'VE DONE.

WE REALLY APPRECIATE ALL THAT YOU'RE GOING TO DO ALL THE WAY UP UNTIL THAT THAT MOVE.

SO AND WE CAN SEE THAT IT'S IT'S KIND OF IT'S EVIDENT HERE THAT YOU YOU KNOW WHAT YOU'RE TALKING ABOUT AND YOU'VE GOT IT LAID OUT PRETTY CLEAR FOR US.

SO LET ME LET ME REDIRECT OUR CONVERSATION BACK TO WE GOT A COUPLE DIFFERENT ROADS TO GET ON.

LET ME JUST HIT A FEW QUESTIONS THAT THAT WE COULD GET OUT OF THE WAY BEFORE WE WE PICK A ROAD.

UM, WE DID TALK ABOUT HOW MUCH CONTINGENCY I MEAN FOR ME $3.4 MILLION SOUNDS LIKE A LOT TO DREDGE A LAKE.

HOW MANY CUBIC YARDS ARE COMING OUT OF THAT LAKE? IT ROUGHLY. I DON'T HAVE THOSE NUMBERS OFF THE TOP OF MY HEAD.

I COULD GET THEM PRETTY QUICKLY, THOUGH, BECAUSE I JUST DID A FAIRLY ROUGH CALCULATION OF OF DEPTH AND SURFACE AREA.

WHILE HE'S DOING THAT WITH THOSE CONTINGENCIES, IF THOSE WERE TO MANIFEST THROUGH THE BID PROCESS AND WE WERE TO SEE THOSE EFFICIENCIES, THEN WE WOULD PULL UP PRIORITY JOBS AND DO THEM THAT QUALIFY UNDER THE DEBT ISSUES.

SO YOU WOULD GET MORE WORK DONE IS WHAT WE WOULD THAT'S WHAT WE WOULD PROPOSE IN THE DEBT ISSUANCE WHILE HE'S LOOKING.

THEN YOU HAVE BUILT IN PAVEMENT, PAVEMENT REPAIRS, CONCRETE, CURB AND GUTTER.

THESE ARE THESE ARE TURNKEY BIDS, RIGHT, ON THESE PROJECTS? YES. NOW, PART OF THAT GEORGIA STREET IS THAT PART THAT'S FUNDED WITH THE PREVIOUS BOND.

NOTHING THAT YOU'RE PROPOSING HERE IS GOING TO LEAD US INTO ANOTHER CONVERSATION OF, OH, WELL, NOW WE NEED TO GO FACTOR PAVEMENT REPAIRS AT FULTON AND BELL.

THAT'S THAT'S INCLUDED IN HERE.

THAT'S CORRECT. THAT WOULD BE INCLUDED.

SO SO IT'S A FULL PROJECT WHERE YOU YOU DIG DOWN, PUT IN WHAT YOU NEED TO BUILD UP AND RESTORE YOUR SURFACE.

IT'S A COMPLETE PROJECT.

AND JUST SO YOU I KIND OF COME UP WITH THE NUMBERS AS LAWRENCE LIKE AN EXAMPLE IT'S BETWEEN 300 AND 350,000YD³ OF MATERIAL THAT COULD BE REMOVED FROM THERE, JUST BASED ON THE AMOUNT OF SILTING IN THAT WE'VE SEEN AT OTHER LAKES.

ABOUT FIVE FOOT OF SILT OVER THE AREA OF THAT LAKE IS WHAT THAT IS, 350,000.

UM, TAG ON TO THAT REAL QUICK.

YEAH. AND THEN I'LL COME BACK TO I WANT TO GO OVER SOME MAINTENANCE COSTS.

SO AND MAYBE MY IGNORANCE HERE, BUT I MEAN I LOOK AT LAWRENCE AND WHAT A BIG DEAL THAT IS, JUST THE DEPTH AND THAT TYPE OF DEAL.

AND I KNOW WE'RE LOOKING AT SIDE EXCAVATION THAT, THAT KIND OF THING.

BUT DREDGING THEN WE LOOK AT METAL PART I'M LIKE, THAT'S NOT EVEN ON THE SAME SCALE, BUT WE'RE LOOKING AT $600,000 DIFFERENCE.

IS THAT RIGHT? SIR, I THINK YOU'RE LOOKING AT.

SO THE EXCAVATION VERSUS DREDGING ARE TWO DIFFERENT PROJECTS.

THE. NO. YEAH, I'M SORRY.

YEAH, JUST DREDGING.

YEAH, JUST DREDGING. WE'RE ESTIMATING THAT THOSE ARE ABOUT THE SAME BECAUSE IT REALLY THE DEPTH OF THE LAKE AS FAR AS, YOU KNOW, 60FT IN THE GROUND REALLY ISN'T THE FACTOR, IT'S THE AMOUNT OF MATERIAL. AND I ESTIMATED THAT IT WAS ABOUT THE SAME AMOUNT OF MATERIAL THAT NEEDS TO BE REMOVED FROM ALL THESE DIFFERENT AREAS.

OKAY. OKAY. SO TELL ME IF MY IF MY MATH IS BAD.

SO YOU GAVE ME 350,000YD³ AT 3.4 MILLION.

[00:55:06]

TIMES SAY 20 TO GET A TANDEM LOAD.

RIGHT? SO THAT'S $194 A LOAD OUT.

THAT'S ABOUT AND THAT WOULD INCLUDE ALL OF MY EQUIPMENT, EXCAVATION LOAD UP HAUL.

AND THEN DOES THIS MATERIAL HAVE VALUE? IT DOES POTENTIALLY.

I THINK WHERE IT HAS A SIGNIFICANT AMOUNT OF VALUE COULD POTENTIALLY BE AT THE LANDFILL.

THAT'S JUST ONE THING OFF THE TOP OF MY HEAD.

WE'D HAVE TO HAVE SOMEBODY, YOU KNOW, TAKE THAT TO A LAB AND ANALYZE IT AND SEE IF IF IT'S A CLAY MATERIAL.

MAYBE NOT, BUT IT POTENTIALLY COULD.

AND THAT'S NOT FACTORED IN.

ANY VALUE THAT THE MATERIAL HAS IS NOT BUILDING MATERIAL.

BUT IF YOU WERE LINING THE BOTTOM.

YEAH. CLAY LINER OR IF YOU'RE LINING THE BOTTOM OF A POND OR A RETAINING POND OR WHATEVER.

YEAH. ARE YOU LOOKING TO DO WASTEWATER WORK? WELL, $200 A LOAD DOESN'T SOUND AS CRAZY AS 3.4 MILLION, YOU KNOW? SO WHEN YOU REALLY GET THE CUBIC VOLUME, I THINK IT MAKES MORE SENSE.

YEAH. AND I LOOKED AT A NUMBER OF CITIES THAT HAD DONE RECENTLY.

DREDGING PROJECTS WITHIN THE PAST FEW YEARS, WENT THROUGH THEIR BUDGETS, LOOKED AT WHAT THAT WAS, LOOKED AT, THE VOLUME OF MATERIAL REMOVED.

AND SO THIS IS COMING FROM REAL WORLD PROJECTS THAT WERE CONSTRUCTED IN THE STATE OR PROJECTS THAT WERE COMPLETED IN THE STATE OF TEXAS.

WELL, I NOTICED THEY ALL KIND OF MATCH.

SO LIKE YOU'RE ANTICIPATING GETTING THAT MUCH OUT OF ALL OF THEM OR YOU'RE JUST COVERING YOUR BASES? A LITTLE BIT OF BOTH.

I THINK ALL THE LAKES, ESPECIALLY MCDONALD AND MCDONALD, THOMPSON AND META PARK, I DO EXPECT THAT THEY WOULD ALL HAVE ABOUT THE SAME AMOUNT OF MATERIAL COMING OUT OF THEM.

OKAY. ONE THING THAT WE DO NEED TO ADDRESS HERE BEFORE WE WE CAN HOPEFULLY GET BACK TO A REALLY PRODUCTIVE CONVERSATION OR DISCUSSION. YOU KNOW, WE'VE COLLECTED $55 MILLION, LET'S SAY, SINCE WE'VE PUT THIS IN, WHAT'S THE ACTUAL AMOUNT SO THAT I DON'T MISSPEAK.

YOU CAN CORRECT ME ON THAT ONE.

BUT LET'S SAY IT'S 55 MILLION.

WE COULD HAVE PUT, SAY, 20 MILLION INTO MARTIN ROAD, 20 PLUS IF WE COULD GET THAT NUMBER FOR THE RECORD SO THAT WE KNOW HOW MUCH DO WE SPEND ANNUALLY ON SWEEPING AND GETTING TO MAINTENANCE.

LIKE WHAT I'M WHAT I'M TRYING TO ESTABLISH HERE IS WE'VE BEEN COLLECTING THIS FEE FOR A WHILE.

I'M PROPOSING TO INCREASE IT A SUBSTANTIAL AMOUNT AND I NEED TO KNOW THAT WE'VE SPENT ALL THE MONEY WELL, AND IF WE HAVEN'T, WE NEED TO ACKNOWLEDGE IT.

AND THEN IF WE HAVE, WE NEED WE NEED TO BE ABLE TO SHOW OUR PUBLIC THAT BECAUSE THE PUBLIC NEEDS TO KNOW THAT THAT EVERY DOLLAR THAT'S GOING INTO THIS FUND FROM HERE FORWARD IS GOING TO GO HIT THESE PROJECTS AND THAT THAT WE CAN.

WE CAN TAKE THAT TRUST FACTOR OUT HERE.

AND THAT'S ONE OF THE BIG ISSUES THAT WE HAVE HERE.

I DON'T KNOW THAT I'VE HAD ANYBODY CALL ME AND SAY, I CAN'T BELIEVE YOU CHARGED ME $2.50.

WHAT I HAVE HAD PEOPLE CALL ME AND SAY IS, IS WELL, I DON'T SEE THAT THAT MONEY'S GOING WHERE YOU'RE SAYING, I THINK YOU'RE USING IT ON OTHER THINGS OR WELL, THAT'S JUST A TAX.

WELL, I AGREE WITH YOU.

I MEAN, I KNOW IT'S A FEE, BUT.

BUT IF I DON'T CHARGE THIS FEE, THEN ULTIMATELY IT ENDS UP IN MY GENERAL FUND AND THAT IS GOING TO GET PAID AND RESOURCED THROUGH A TAX.

AND SO, YOU KNOW, COUNCIL'S PREVIOUS SAW SOME WISDOM AND PULLING THIS OUT AND ENTERPRISING IT.

BUT THEN WE I WOULD LIKE TO GO BACK A LITTLE WAYS HERE GET THOSE NUMBERS OUT AND THEN IF WE HAVE THOSE ACTUAL REPORTS, LET'S PUBLICIZE THAT SO THAT PEOPLE CAN SEE HOW MUCH ARE WE SPENDING ANNUALLY, YOU KNOW, OUT OF THIS FUND.

AND THEN WHERE DID ALL THE MONEY GO THAT WAY? WE'VE GOT A NET ZERO BALANCE AS WE MOVE FORWARD.

YES, MA'AM. SO WE ACTUALLY HAVE A ONE PAGE INFOGRAPHIC THAT WAS PUT TOGETHER BY OUR ENGAGEMENT AND INNOVATION TEAM. AND IF YOU'LL BEAR WITH ME, I'LL EMAIL IT TO STEPHANIE REAL QUICK AND SHE CAN PULL IT UP FOR YOU GUYS.

WE CAN GET Y'ALL A COPY OF THIS AS WELL.

AND WHAT IT SHOWS IS THAT SINCE 2012 AND WE JUST WENT THROUGH THE END OF LAST YEAR BECAUSE THIS YEAR IS STILL MOVING AND NOT COMPLETED YET.

SO THERE HAS BEEN A TOTAL OF 57 AND ONE HALF MILLION COLLECTED IN DRAINAGE SINCE 2012, SINCE WE ESTABLISHED THIS UTILITY.

AND SO WE COLLECT ABOUT 5.6 ANNUALLY.

SO SINCE 2012, JUST UNDER 30 MILLION OF THAT WAS SPENT ON OPERATIONS.

AND SO IT LOOKS LIKE PER THE CURRENT YEAR'S BUDGET, IT LOOKS LIKE RIGHT NOW WE'RE SPENDING APPROXIMATELY $1 MILLION A YEAR ON WHAT THEY'RE SAYING IS ENVIRONMENTAL MAINTENANCE.

AND SO A LOT OF THAT IS LIKE THE STREET SWEEPING.

AND I'LL LET ALLAN GO INTO THAT IF YOU WANT.

SO THE REST OF IT.

SO JUST SHY OF $28 MILLION IS BEEN SPENT ON CAPITAL PROJECTS AND OR ARE EARMARKED TO CONTINUE SPENDING ON CAPITAL PROJECTS.

[01:00:01]

IT TALKS ABOUT SOME OF THE LARGE PROJECTS THAT HAVE BEEN COMPLETED WITH THESE DOLLARS AND SOME THAT ARE ONGOING ONES.

AND SO WE CAN GET YOU GUYS I'LL GET YOU GUYS ALL A COPY OF THIS, BUT IF YOU WANT TO REFER TO PAGE 589 IN YOUR BOOK, THAT IS WHERE IT KIND OF TALKS THROUGH SOME OF THE SERVICES THAT ARE PROVIDED ANNUALLY THROUGH THIS FUND.

AND THAT'S WHERE IT'S KIND OF APPROXIMATELY $1 MILLION IS FOR THE STREET SWEEPING TO IMPROVE THE DRAINAGE SYSTEM TO ENSURE IT'S DRAINING PROPERLY.

SO ALAN, YOU WANT TO JUMP IN AND ADD ANYTHING ON THAT? YES, MA'AM. SO THE PAGE JUST BEFORE THAT, 588 SHOWS THAT APPROXIMATELY OF OUR BUDGET THAT WE'RE PROPOSING THIS YEAR, $3.3 MILLION IS DRAINAGE INFRASTRUCTURE AND MAINTENANCE.

THAT'S INSPECTION OF INLETS, INSPECTION OF STORMWATER PIPE, ENSURING THAT THERE AREN'T OBSTRUCTIONS THAT ARE PREVENTING THAT INTERSECTION FROM DRAINING OR THAT THAT STORM SEWER FROM CARRYING WHAT IT NEEDS TO.

IT ALSO INCLUDES ALL THE SMALL PROJECTS.

I KIND OF TALKED TWO WEEKS AGO ABOUT THE VOLUMETRIC MIXER THAT OUR CREWS WOULD USE FOR CONCRETE, ITS REPLACEMENT OF ALLEY GUTTERS THAT ARE CRACKED AND DETERIORATING, CURB AND GUTTER THAT HAS FAILED, PUTTING IN NEW VALLEY GUTTERS WHERE WE SEE AREAS THAT ARE MAYBE LOW SPOTS WHERE WATER IS PONDING TO GET THAT WATER MOVING.

OTHER THINGS THAT WE DO, PIPE REPLACEMENT I MENTIONED A COUPLE OF YEARS AGO, WE DID A REPLACEMENT OF THE INLET STRUCTURE AT MCDONALD LAKE.

THAT WAS ALL DONE USING A LITTLE BIT OF THE CIP, THE DRAINAGE ANY FUNDS, BUT ALSO THE PERSONNEL THAT ARE THERE, THE EQUIPMENT THAT'S THERE DIGGING THAT IS ALL COMING OUT OF THIS OPERATIONAL BUDGET TO DO THOSE PROJECTS IN HOUSE.

AND YOU SAW PROBABLY RECENTLY WHEN WE TURNED OFF THE PUMP AT PLAYA SEVEN, THAT WAS GOING TO MCDONALD LAKE.

MCDONALD LAKE WAS KIND OF SLOWLY GOING DOWN SINCE WE'VE STOPPED PUMPING PLANT SEVEN, IT'S GOING DOWN FAST AND THAT'S ALL THANKS TO THESE GUYS.

AND I DID A DISSERVICE. I DIDN'T INTRODUCE OUR DRAINAGE UTILITY SUPERINTENDENT WHEN WE STARTED JAMES SACHER.

THAT'S ALL BECAUSE OF HIM AND HIS STAFF WHO WERE ABLE TO BUILD THAT IN HOUSE THAT WE CAN RUN THAT MCDONALD LAKE PUMP AND GET THAT THAT PUMP BACK DOWN.

SO THAT'S THE TYPE OF STUFF THAT THAT'S FUNDING.

I HAVE A QUESTION.

WELL, I'M LOOKING AT THIS SHEET.

I SEE LIKE LAMAR AND 45TH, 2.5 MILLION FULTON.

AND MALE. 2 MILLION.

THE QUESTION I HAVE WHENEVER YOU GET A RAIN WHERE YOU'RE FLAT.

ALBUQUERQUE, PHENIX.

THOSE INTERSECTIONS ARE GOING TO FLOOD ANYWAY.

AND AS YOU ALL STATED A WHILE AGO, IN 30 MINUTES TO AN HOUR, HOUR AND A HALF, THEY'RE CLEAR.

NOW IS THAT MONEY WELL SPENT.

TO GO AHEAD AND TRY TO FIX SOMETHING THAT I DON'T CARE IF YOU HAVE A ONE INCH RAIN AND YOU PUT IN A BIG OLD PIPE.

THAT PIPE IS ONLY GOING TO TAKE SO MUCH WATER AT A TIME.

I DON'T THINK YOU'LL EVER GET RID.

OF THE FLOODING OF INTERSECTIONS, ESPECIALLY WHEN YOU LIVE IN OUR PART OF THE COUNTRY.

SO MY QUESTION IS, IF YOU TOOK SOME OF THESE PROJECTS OUT, WOULD WE HAVE MONEY BETTER SPENT ELSEWHERE? I THINK THAT'S A GREAT QUESTION.

AND YOU'RE RIGHT, SOMETHING WE ALWAYS POINT OUT TO PEOPLE, YOU KNOW, WHEN WE DO PROJECTS LIKE THIS, REGARDLESS OF HOW BIG AN INLET YOU PUT IN, REGARDLESS OF HOW BIG YOUR PIPE IS OR HOW DEEP YOU DIG THAT LAKE, THERE IS SOME RAIN THAT'S COMING THAT'S GOING TO GET YOU.

WHERE WE FOCUSED ON FOR THE INTERSECTIONS WAS THE AREAS WHERE WE SEE THE MOST COMPLAINTS, THE MOST WATER RESCUES, NOT LOOKING AT AREAS WHERE, YEAH, IT GETS UP TO THE TOP OF THE CURB. BUT BELL AND FULTON IS FULTON'S INTERSECTION WHERE IT LITERALLY CAN GET TWO, THREE, FOUR FEET DEEP AT TIMES.

46TH AND LAMAR, VERY SIMILAR.

IT GETS EXTREMELY DEEP.

AND SO REALLY IT BECOMES LESS OF A NUISANCE, MORE OF A AND I HESITATE TO GET INTO LIFE SAFETY OR PUBLIC SAFETY, BECAUSE THAT'S NOT MY REALM.

I'M NOT A FIREFIGHTER. I'M NOT A POLICE OFFICER.

BUT AREAS WHERE, YOU KNOW, IT COULD BE AN ISSUE OF IT BEING DEEP ENOUGH THAT THERE'S A POTENTIAL FOR SOMEONE TO DRIVE INTO IT AND DROWN.

NOT JUST IT'S A NUISANCE, BUT IT GOES AWAY.

BUT ABSOLUTELY THAT IT IS IF IT'S SOMETHING THAT WASN'T A PRIORITY, THAT MONEY COULD BE SPENT ON ANOTHER PROJECT.

I WAS JUST WONDERING, YOU KNOW.

WITH HER.

IT DEPARTMENT BEING ABLE TO DO THE THINGS THEY CAN DO.

IF WE JUST DON'T NEED TO EDUCATE PEOPLE.

MAYBE YOU NEED TO THINK ABOUT SOMETHING BEFORE YOU TURN AROUND.

[01:05:01]

AND WHAT WE'RE TRYING TO DO, IT APPEARS TO ME, IS THAT WE'RE TRYING TO MAKE THIS A DUMMY PROOF.

OKAY. AND.

I JUST THINK SOME OF THESE BIGGER PROJECTS, LIKE I CAN BUY INTO THE DREDGING OF THE LAKES A LOT BETTER THAN I CAN INTERSECTIONS.

I MEAN, TO ME NOW, THAT'S JUST MY OPINION.

A ONE THING TO THE MAYOR'S POINT.

SO WHEN WE GO BACK AND LOOK AT THE FLOODING, WHAT PROJECTS HAVE WE HAVE WE PAID FOR WITH THE DRAINAGE FEE SO FAR THAT HELP BECAUSE NOBODY EVERYBODY LIKES TO REPORT WHEN THE PLANE CRASHES, BUT NOBODY REPORTS WHEN IT LANDED SAFELY.

AND I DO THINK WE HAD SOME PLANES THAT LANDED SAFELY IN THAT BECAUSE OF INVESTMENT.

I GUESS MARTIN ROAD IS ONE OF THOSE THAT WE REALLY HAD NO PROBLEMS IN THAT AREA.

ARE THERE ANY OTHER THINGS THAT WE FUNDED WITH THAT THAT YOU FELT LIKE HELPED SIGNIFICANTLY IN THE FLOODING THAT COULD HAVE BEEN WORSE HAD WE NOT PAID FOR THOSE PROJECTS THROUGH THE DRAINAGE FEE? OH, MOST DEFINITELY.

THE EXCAVATION AT PLAYA SEVEN INCREASED THE CAPACITY OF THAT LAKE THAT SUCH THAT THERE WAS A SIGNIFICANT.

REDUCTION IN WHAT THAT WATER WOULD HAVE RISEN TO HAD THAT EXCAVATION NOT OCCURRED AT THE SAME BREATH THAT WAS PART OF THE GETTING THE WATER ACROSS SWANSEA.

AND WHAT MOTIVATED THAT PROJECT? AT ONE POINT WHEN KYLE AND I FIRST BECAME IN LEADERSHIP ROLES OF IT WAS THAT THAT WATER WAS GOING OVER SWANSEA.

SO YOU HAVE SEEN SIGNIFICANT IMPROVEMENTS, THE SAME THING.

WE HAD A PROJECT DOWN ON SOUTH LOOP AT CITY VIEW WHERE THAT WATER WAS BROUGHT UNDER.

WE HAD A PROJECT THAT BROUGHT WATER UNDER OSAGE.

THOSE PROJECTS WERE ALL THE RESULT OF THE OLD APPROACH TO SUBDIVISIONS WHERE THE CITY WAS PAYING FOR THOSE PARTS OF THE INFRASTRUCTURE.

BUT THOSE GREAT JUST GO BACK IN TIME.

IT WAS SOMEWHERE ON WILSON STREET OVER IN TRADE WINDS SUCH THAT BEFORE THAT PIPELINE WAS PUT UNDER OSAGE, HALF A BLOCK OF PAVING FLOATED AWAY BECAUSE OF THE RAIN.

SO WE'VE SEEN SIGNIFICANT APPLICATION OF THESE FUNDS WHERE THEY DO GOOD, VERY SIMILAR TO WHAT YOU SEE ON THIS SHEET.

THESE AS ALAN SAID, THESE INTERSECTIONS ARE PROBABLY THE WORST OF THE WORST.

BUT THERE WILL BE OTHERS.

BUT THERE'S BEEN INVESTMENT.

GO BACK TO THE OPERATIONS.

PAGE 589.

THOSE FUNDS SPENT ON CURB AND GUTTER CLEANING AND MAINTENANCE AND SWEEPING.

WHILE WE SAW TREMENDOUS VOLUMES OF DEBRIS AND TRASH IN THE LAKES FROM THE FLOODING EVENT, IT WOULD HAVE BEEN TENFOLD IF THOSE OPERATIONS HADN'T HADN'T BEEN IN OPERATION.

SO IT'S HARD TO QUANTIFY THAT WE HAD SUCCESS IN FRONT OF EACH AND EVERYBODY'S HOUSE SWEEPING AND HAVING THIS.

BUT THOSE OPERATIONS GO CITY WIDE AND THEY HAVE A POSITIVE IMPACT FOR EVERYBODY PAYING THEIR THEIR THE FEE FOR DRAINAGE.

JUST THE INSPECTION AND VIDEO PIECE UP THERE THAT IDENTIFIES THOSE POINT REPAIRS BEFORE A CAR FALLS IN THEM.

THIS IS A TREMENDOUSLY EFFECTIVE PROGRAM THAT GETS NO RECOGNITION.

AND THAT'S PARTLY ON ME.

OKAY. AND BUT YOU SEE, WE'RE ENHANCING THAT.

SO I HOPE THAT GAVE YOU AT LEAST A BRIEF LIST OF OTHERS BESIDES MARTIN ROAD.

THOSE THREE PROJECTS, ONE AT OSAGE, ONE AT SOUTH LOOP, ONE ON THE WEST LOOP.

THOSE ARE TREMENDOUS INVESTMENTS FOR PROTECTION OF OUR PUBLIC.

I'D LIKE TO ADD ONE TO THAT. THAT REALLY DOES HAVE A KEY PROTECTION POINT.

IS THE THIRD AVENUE UNDERPASS JUST HERE EAST OF DOWNTOWN WHERE WE HAVE A PUMP STATION THERE THAT WHEN WATER COMES IN THERE, IT PUMPS IT OUT.

THOSE PUMPS WERE I THINK THE DATE ON THOSE PLATES WAS THE 1960S.

JUST IN THIS PAST YEAR, WE REPLACED BASICALLY THE ENTIRE PLUMBING AND ALL THE PUMPS IN THAT PUMP STATION.

AND SO WHILE WE STILL WHEN IT RAINS, YOU STILL SEE SOME STANDING WATER THERE.

AND WE MAY HAVE TO CLOSE IT DOWN TEMPORARILY.

THOSE PUMPS TURN ON AND DRAIN THAT FAST.

WHEREAS BEFORE, WHEN THOSE PUMPS WEREN'T WORKING, WE HAD TO CLOSE THE INTERSECTION, BRING IN A PORTABLE PUMP, PUMP IT UP THE HILL AND KEEP THAT CLOSED FOR FOR A TIME, DAYS AT TIMES, DAYS. AND WE HAVE A CURRENT PROJECT THAT HAS A POSITIVE IMPACT ON BOTH 10TH AND THIRD UNDERPASS, THAT ONE IN DESIGN AND SHOULD BE BID OUT SOMETIME. ANY IDEA? SO WE'VE GOT A I'VE GOT A PROFESSIONAL SERVICES AGREEMENT WE'RE BIDDING RELATIVE TO.

COORDINATION WITH OTHER PROJECTS.

SO QUICKLY, QUICKLY, IS THERE A LIST SOMEWHERE? BECAUSE THE ONE THING I MEAN, WHILE THIS THIS IS, YOU KNOW, A GOOD SUMMARY, I THINK IT JUST MAKES IT LOOK LIKE I'VE GOT ALL THIS MONEY.

[01:10:06]

I DON'T KNOW IF THERE'S A COMPLETE LIST SOMEWHERE OR SOMETHING THAT WOULD BE AVAILABLE BECAUSE I JUST THINK THIS IS SOMETHING THAT PEOPLE ARE JUST NOT FULLY AWARE OF.

WE'LL GET WE AT THE SAME TIME, I THINK WE DEVELOPED A MASTER PROJECT LIST AND WE'LL GET THAT OUT TO YOU AND THEN WE'LL GET WITH COMMUNICATIONS AND GET HOW WE PRESENT IT THE SAME WAY.

OKAY. JUST A COUPLE OTHER QUESTIONS.

SO SOME SENSORS AND ALERTS MOVING FORWARD ON THESE PUMPS AND SOME OF THIS THAT YOU'RE BUILDING IN, YOU HAVE A BETTER PLAN AND AN OPERATIONAL MONITORING MOVING FORWARD? ABSOLUTELY. SO OUR STAFF IS GOING AROUND INSTALLING LIGHTS ON OUR PUMP STATIONS RIGHT NOW.

I THINK THE LIGHTS ARE INSTALLED.

WE HAVE AN ELECTRICIAN THAT'S A PRIVATE ELECTRICIAN THAT'S GOING AROUND AND CONNECTING THEM ALL.

SO THAT'S SOMETHING THAT'LL JUST ALLOW THE PUBLIC TO BE ABLE TO TO BE OUR EYES AND EARS.

NOW, WE OBVIOUSLY GO OUT AND LOOK AT THESE THINGS, BUT THERE'S 200,000 PEOPLE OUT THERE THAT CAN CAN MONITOR THAT FOR US AND HELP US OUT.

SO THAT'S ONE THAT'S A BIG FORCE MULTIPLIER.

ANOTHER THING WE HAVE, WE UTILIZE A SCADA THAT'S SUPERVISORY CONTROL AND DATA ACQUISITION PROGRAM CALLED HIGH TIDE.

YOU CAN PROBABLY SPEAK TO EXACTLY WHICH PUMP STATIONS THAT'S INSTALLED ON, BUT THAT ALLOWS US TO REMOTELY MONITOR WHEN THE MOTOR OR PUMP IS RUNNING VERSUS WHEN IT'S NOT.

WE DON'T HAVE THAT INSTALLED AT AT EVERY PUMP STATION, BUT IT'S DEFINITELY A PROJECT THAT WE COULD CONSIDER.

AND KIND OF AS I GET READY TO TRANSITION AWAY FROM THE CITY, I WOULD JUST SAY HERE, I THINK THOSE TYPES OF THINGS ARE BENEFICIAL AND WE SHOULD PUT SOME OF OUR INNER RESOURCES JUST TOWARDS ENHANCING THAT.

AND I'M NOT SAYING WE HAVEN'T FOR ANY REASON.

I JUST THINK IT'S SOMETHING WE HAVE THAT'S WORKING.

WE SHOULD FOCUS ON EXPANDING IT A LITTLE BIT OVER THE NEXT FEW YEARS.

IN ADDITION TO THAT, WHEN WE UPGRADED THE SCADA SYSTEM FOR OUR WATER AND SEWER SYSTEM, WE HAVE A MODULE AVAILABLE ALREADY IN THE COMMUNICATION COMPONENT FOR THIS TO TO WORK IN COORDINATION WITH.

SO AS THEY DEVELOP THIS AT EACH SITE, WE ALREADY HAVE A COMMUNICATION MODULE AVAILABLE SUCH THAT IT CAN GO TO AN OPERATOR OR MANAGEMENT LEADERSHIP OF THE TEAM. HOWEVER THAT COMMUNICATION.

NEEDS TO BE DONE.

SO THAT IS AVAILABLE ALREADY WITHIN THE MODULE THAT WE BOUGHT OUT OF UTILITY.

FLOYD, WHAT WOULD YOU GUESS IS THE FIVE YEAR CIP TOTAL FOR DRAINAGE IN MILLIONS? IF ON YOUR FIVE YEAR CIP HOW MUCH IS DRAINAGE? HOW MANY PROJECTS IN FIVE YEARS? WE'RE BASICALLY PLANNING ON THAT 3.2.

SO IT'S. YES.

SO. OKAY.

ALL RIGHT. SO THAT'S LET ME SEE IF I CAN ASK THAT QUESTION IN A DIFFERENT WAY.

IF YOU IF YOU DIDN'T HAVE A CFP THAT WAS DIRECTED BY YOUR CURRENT BUDGET FUNDING, WHAT WOULD YOU HAVE IN THERE IN A FIVE YEAR OUTLOOK? AND HERE'S WHERE I'M GOING WITH THIS.

LOOKING AT THE MOST EXPENSIVE OR THE GREATEST INCREASE HERE WE GO TO ROUGHLY $12 MILLION IN A PROPOSED REVENUE.

AM I CORRECT IN THAT? ALLEN NO, I THINK THE MOST EXPENSIVE ONE WAS THE AND MAYBE I MISUNDERSTANDING YOU IS THE ONE WHERE WE ACTUALLY ISSUE $42.8 MILLION IN DEBT.

BUT MAYBE I MISUNDERSTOOD YOUR QUESTION.

I'M JUST LOOKING AT NOT THE DEBT ISSUE.

I'M LOOKING AT THE OPERATING INCOME, THEIR AD REVENUES, 12.2 MILLION.

YES. THAT'S SO WHAT I'M WHAT I'M SAYING IS, IS IF WE'VE BEEN AVERAGING 5.6 MILLION IN INCOME OR REVENUES EVERY YEAR OVER THE LAST TEN YEARS, WHAT WE'VE DONE IS WE'VE INCREMENTALLY WORKED IT UP TO ABOUT SEVEN.

AND NOW WE'RE SAYING, WELL, WE WANT TO GO TO EIGHT.

BUT THIS SCENARIO SAYS, WELL, LET'S GO TO 12.

AND SO IF I SAY OVER THE LAST TEN YEARS, WE'VE WE'VE SPENT 30 OF OUR $57 MILLION ON ON PROJECTS AND THESE ARE ROUND NUMBERS.

I KNOW THEY'RE NOT THEY'RE NOT ACCURATE, BUT WE COULD BE SPENDING ROUGHLY TWO AND A HALF TO $3 MILLION A YEAR IN MAINTAINING EVERYTHING THAT WE NEED TO AND RUNNING THIS ENTERPRISE.

SO ON A 12 MILLION OUTLOOK, DO I HAVE $9 MILLION EVERY YEAR THAT I CAN GET TO PROJECTS WITH THAT NEW FEE? NO, I DON'T BELIEVE SO, BECAUSE IF YOU LOOK AT THE OPERATING BUDGET AND STEP IN HERE.

ABSOLUTELY. BECAUSE WHAT IT'S DOING IS IT'S IT'S PUTTING ALL OF THAT ADDITIONAL INCOME TOWARDS DEBT SERVICE PAYMENTS GOING FORWARD SO IT DOESN'T GO TOWARDS OPERATIONS AND IT DOESN'T GO TOWARDS ONGOING CASH FUNDED PROJECTS.

IT'S GOING TO PAY ONGOING DEBT SERVICE FOR A 20 YEAR PERIOD.

DOES THAT ANSWER YOUR QUESTION OR DID I? WELL, NO, IT DOES.

BUT THEN I'M SAYING IF WE INCREASE REVENUES TO 12 MILLION, THESE ARE ROUND NUMBERS ONCE AGAIN, AND WE'RE GOING TO SPEND 3 MILLION IN OPERATING COSTS.

THESE ARE AVERAGES. YEAH.

HOW MUCH IS MY DEBT SERVICE IF WE ISSUED WHAT'S THE TOTAL DEBT TO GET TO ALL OF THESE? 40. 42.8 MILLION.

42 MILLION ON A 20 YEAR LOOK.

WHAT DOES THAT COST ME EVERY YEAR? ABOUT 3.2 MILLION A YEAR.

SO I'VE GOT AROUND $6 MILLION THERE LEFT.

[01:15:01]

SO LET'S SAY IT'S CLOSER TO FOUR.

SO LET'S TAKE A MILLION OFF.

WE'RE 5 MILLION LEFT.

YES. AND SO YOU HAVE ONGOING DEBT SERVICE IN THAT SCENARIO OF FIVE AND A HALF A YEAR BECAUSE YOU ALREADY HAVE EXISTING OUTSTANDING DEBT.

RIGHT. BUT I THOUGHT IT WAS ONLY 850 IN THE BUDGET BOOK WAS MY DEBT SERVICE.

NO. 850,000? NO. SO IN YOUR DEBT SERVICE IS, HANG ON.

LET ME GET TO THAT PAGE REAL QUICK.

IT IS OH, IT'S 850 IS FOR THE INTEREST AND THEN IT'S 1.4 MILLION FOR PRINCIPAL.

OKAY. SO WE'RE SPENDING $2.5 MILLION APPROXIMATELY.

AND THEN PLUS WHAT WE WOULD BORROW.

EXACTLY. SO YOU'RE SAYING MY CASH FUNDED CAPITAL WOULD WOULD LAND AT WHAT, WITH THE $12 MILLION? HANG ON JUST A SECOND. I'M SORRY.

LET ME GET MY CALCULATOR UP.

AND I'M JUST LOOKING FORWARD IN THE WAY OF TRYING TO MAKE SURE THAT.

IN THIS FEE INCREASE WE'RE LOOKING AT, OKAY, THIS WILL GET US $40 MILLION, BUT IT'LL ALSO GET US THIS MUCH MOVING FORWARD TO WHERE IF WE DON'T NEED 3 MILLION IN CASH FUNDED CAPITAL, LET'S SAY WE'RE COMFORTABLE AT TWO, THAT MILLION DOLLARS IS A $13 MILLION BORROWING POWER EVERY YEAR.

IT GETS YOU TO ABOUT 2.9 MILLION IN ONGOING CASH FUNDED CAPITAL.

GREAT. WHAT'S YOUR COMFORT? IF YOU WERE LEAVING AND YOU HAD TO LEAVE IT IN THE HANDS OF SOMEBODY ELSE, DO THEY NEED 1,000,005 CASH FUNDED CAPITAL MINIMUM? DO THEY NEED 2 MILLION? THE 2 MILLION GOAL HAS BEEN WHERE THEY CAN ADDRESS THOSE CONCERNS PUMPS, INLETS, THOSE THINGS THAT POP UP AND, YOU KNOW, A COLLAPSED SEWER STORM DRAIN HERE AND THERE.

THAT'S WHAT THEY NEED.

THEY NEED THAT 800,000, A MILLION E&I FOR THOSE THOSE URGENT NEEDS.

AND THEN YOU WILL ALWAYS HAVE $1 MILLION PROJECT THAT RISES TO A HIGH PRIORITY FOR WHATEVER REASON, WHETHER THAT'S COORDINATION WITH ANOTHER PROJECT, COORDINATION WITH, YOU KNOW, THE COORDINATION WITH OTHER PROJECTS, STREET PROJECTS AND THOSE THINGS.

IT TAKES ABOUT A MILLION IN AVERAGE DEPENDING ON WHAT'S OCCURRING THROUGH THAT YEAR.

AS YOU AND IF YOU IF WE CAN FIND A WAY TO ENHANCE STREET FUNDING, IT'LL ACTUALLY ENHANCE THAT MILLION DOLLAR NEED OF COORDINATION.

OKAY. SO I WOULD SAY TO COORDINATE PROJECTS AND MAKE SURE THAT WE DON'T HAVE A STREET GOING IN, THAT THE DRAINAGE ISN'T RIGHT ON THAT MILLION NEEDED.

AS YOU ENHANCE STREET FUNDING, YOU'LL NEED MORE.

SO I'M LOOKING AT THIS IN THE WAY OF LIKE AM I BUILDING A BUDGET FOR FUTURE COUNCILS AND STAFF TO HAVE $13 MILLION WORTH OF BORROWING POWER BUILT INTO THIS INCREASE SO THAT ONCE WE FIX OUR OUR MAJORITY OF OUR PROBLEMS, WE'RE NEVER GOING TO GET TO ALL OF IT.

OBVIOUSLY, THE DRAINAGE FEES, NOT JUST GOING TO GO AWAY AFTER WE FIX IT LIKE LIKE WE'RE ON THIS PATH.

BUT DO WE HAVE A PLAN HERE? COULD WE HAVE A PLAN HERE WHERE YOU GUYS ARE LOOKING AT WHAT CASH FUNDED CAPITAL IS GETTING TO WHAT WE NEED? WE'RE DOING A GOOD JOB. WE'RE MAINTAINING, YOU KNOW, SERVICE AND FACILITIES AND ASSETS.

BUT THEN ALSO, HEY, WE HAVE THIS OTHER ISSUE OR WE'VE GROWN.

NOW WE HAVE A WHOLE NOTHER PLAYA THAT NOW SOMEBODY HAS DESIGNED CORRECTLY AND SHOWN A MODEL THAT WORKS BECAUSE KYLE IS IS RIGID ON THAT.

BUT HOWEVER, WE WANT TO PUMP THAT PLAYA ALSO.

AND SO THIS IS GOING TO SOUND WRONG, BUT REALLY AS A CITY WE KIND OF NEED TO MAKE A DECISION.

SHOULD WE SHUT DRAINAGE DOWN AND JUST GET OUT OF THE DRAINAGE, YOU KNOW, ALTOGETHER? OR DO WE HAVE A RESPONSIBILITY AS A CITY TO OUR COMMUNITY TO MANAGE OUR OWN DRAINAGE? WELL, I WOULD SAY WE DO.

AND SO BECAUSE WE HAVE A RESPONSIBILITY, WE NOW HAVE AN ENTERPRISE.

BUT WE STARTED THIS ENTERPRISE, IN MY OPINION, AT ABOUT 50% OF WHAT IT ACTUALLY SHOULD HAVE COSTED US.

SO I'VE BEEN PAYING HALF WHAT I SHOULD HAVE FOR THE LAST TEN YEARS.

NOW I FEEL LIKE I'M PAYING MORE THAN I SHOULD BECAUSE NOBODY EXPLAINED IT TO ME AND NOBODY TOLD ME WHAT DRAINAGE ACTUALLY WOULD DO.

BUT THAT'S OKAY.

NOW I'M HERE AND I'M LEARNING AND I UNDERSTAND.

AND SO IF WE'RE GOING TO BE IN THE BUSINESS OF DOING BUSINESS WITH OUR CUSTOMERS, WE NEED TO DO A GOOD JOB AND WE NEED TO BE ABLE TO CHARGE AN AMOUNT THAT WE CAN DO A GOOD JOB WITH. I'VE NEVER HAD A CUSTOMER THAT I WENT TO AND SAID, WELL, YOU KNOW, I GAVE YOU A DISCOUNT WHEN THEY WERE DISSATISFIED WITH THE QUALITY OF OUR WORK.

I'VE NEVER BEEN ABLE TO SAY, YEAH, THE PAINT JOB DOESN'T LOOK GOOD, BUT YOU KNOW, I ONLY CHARGED YOU LIKE TWO GRAND.

THEY DIDN'T CARE.

THEY IT WAS $2,000 TO THEM AND IT COST THEM MONEY.

AND SO THEY WANTED THAT QUALITY SERVICE.

AND SO, YOU KNOW, WHAT I LEARNED WAS, HEY, I CAN'T DO CHEAP PAINT JOBS BECAUSE PEOPLE DON'T CARE THAT THEY'RE CHEAP.

YOU KNOW, I NEED TO CHARGE AN ADEQUATE AMOUNT TO DO THAT.

AND THEN IN THIS, I ALSO NEED TO BE FAIR SO YOU CAN SEE WHERE YOUR MONEY WENT.

[01:20:04]

SO WITH THIS I'M PUTTING US BACK TO THERE'S A FORK IN THE ROAD, YOU KNOW, I DON'T KNOW THAT WE WOULD EVER SAY, HEY, WE DON'T NEED A DRAINAGE UTILITY.

I THINK WE'RE ALL SMART ENOUGH TO AGREE THAT WE NEED TO HANDLE THIS PROBLEM AS BEST WE CAN UP TO A CERTAIN EVENT.

AND THEN WE ALSO NEED TO COMMUNICATE THAT WE CAN'T HANDLE EVERY EVENT AND WE'RE NOT GOING TO SWEEP EVERY STREET ACROSS THE TOWN.

BUT WE DO HAVE AN OVERALL IMPROVEMENT IN WHAT WE'RE DOING AND WE CAN HANDLE THE MAJORITY OF THE EVENTS MOVING FORWARD.

AND SO WE'VE LEARNED A LOT.

I'VE LEARNED A GREAT DEAL THROUGH THIS FLOODING.

ARE WE A COUNCIL THAT WOULD LIKE TO INCREMENTALLY GROW 5% EVERY YEAR, 10% EVERY YEAR? LET'S JUST CONSTANTLY MOVE THE NEEDLE.

OR ARE WE A COUNCIL THAT SAYS, LOOK, LET'S GET THIS THING DONE, LET'S PUT THE MONEY IN THERE THAT WE'RE GOING TO NEED AND LET'S DEVELOP A PROGRAM FOR THE FUTURE.

MAYOR AND COUNCILS THAT COME AFTER US WHERE THEY HAVE WHAT THEY NEED TO WORK WITH.

IS THIS THE TIME WHERE WE SAY SOMETHING? I JUST THOUGHT IT WAS A GOOD TIME FOR ME TO STOP TALKING.

I'M JUST GOING TO FILL THE SILENCE WITH SOMETHING.

I WILL TELL YOU, I MEAN, WHILE IN A PERFECT WORLD, I'D LIKE TO SAY, BOY, IT'D BE PERFECT JUST TO GET ALL THIS AT ONE TIME.

GET IT DONE. WE KNOW WE'RE GOING TO GET IT DONE.

YOU KNOW, I THINK SLOW, GRADUAL INCREASES IS A BETTER WAY JUST BECAUSE I JUST THINK IT'S SO MUCH OF A STICKER SHOCK TO DO THAT.

AND ALSO, I THINK BY DOING SLOWER IT IT HOLDS US ACCOUNTABLE.

THAT IS, IF WE RAISE IT 5 TO 10% THIS YEAR, WHATEVER IT MAY BE, YOU KNOW, NEXT YEAR WE MAY BE LOOKING AT, HEY, TO CONTINUE DOING PROJECTS, THERE'S ANOTHER INCREASE. WE'RE GOING TO HAVE TO REPORT BACK TO THE PUBLIC AND WE SHOULD BE REPORTING BACK TO THE PUBLIC, BECAUSE WHAT THEY'RE DOING IS THEY'RE MAKING AN INVESTMENT.

NOW WE'RE SAYING YOU GOT TO MAKE THIS INVESTMENT.

AND I THINK WE'VE GOT TO MAKE SURE THAT WE HAVE INDICATED PROPERLY.

HERE'S WHAT YOU'VE GOTTEN BACK OUT OF THAT INVESTMENT TO BE ABLE TO THEN HAVE THE WHEREWITHAL TO SAY, OKAY, AND MAYBE ANOTHER INCREMENT.

THE DOWNSIDES, I DON'T SEE ANY OF THESE DOWNSIDES THAT WE CAN REALLY CONTROL OTHER THAN MAYBE THE SAVINGS MISSED.

I MEAN, WE DON'T KNOW WHAT'S GOING TO HAPPEN WITH FUTURE COUNCILS COST, YOU KNOW, THAT THAT TYPE OF STUFF.

BUT I DON'T KNOW.

I THINK I WOULD JUST BE MORE COMFORTABLE WITH SOMETHING SLOW AND METHODICAL AND THAT WE'RE REPORTING BACK TO THE COMMUNITY TO SAY, JUST LIKE YOU DID TODAY.

I THINK I LEARNED A LOT OF NEW PROJECTS.

I DIDN'T KNOW ABOUT THE THIRD STREET UNDERPASS TO SAY, HEY, WE'RE HERE'S HERE'S WHERE YOUR INVESTMENT IS GOING AND HERE'S WHERE THE BENEFIT IS OUT OF IT.

SO JUST MY THOUGHTS.

I THINK THOSE ARE GOOD THOUGHTS.

AND AND I THINK THERE'S SOME WISDOM ON BOTH SIDES AND THERE'S DEFINITELY PROS AND CONS ON BOTH SIDES, YOU KNOW, SO.

ANY OTHER THOUGHTS ON THAT? WELL, MY COMMENT WOULD BE AND I DON'T KNOW, I'M JUST THROWING THIS OUT THERE TO JUST TO DISCUSS.

RIGHT. IS IS $1.58 STICKER SHOCK BECAUSE THAT'S WHAT WE'RE LOOKING AT FOR A 47% INCREASE.

IS THAT CORRECT? DOLLAR 58 A MONTH.

BUT YET THAT PUTS US IN A POSITION AS A MUNICIPALITY OR A CITY TO GET THE THINGS DONE THAT WE NEED DONE CORRECT, OR AT LEAST PUTS US ON THE PATH TO DO IT AND IS TO MAYOR'S POINT PUTS THE CITY IN A GOOD POSITION OR PUTS A THE COMING MAYOR AND THE COMING COUNCIL IN A GOOD POSITION IN THE DEPARTMENT IN A GOOD POSITION TO LEVERAGE THE INCOME WE'VE GOT COMING IN TO DO FUTURE PROJECTS IF NEEDED. BUT IF WE DON'T NEED THEM, I MEAN, WE'VE GOT THAT THAT DEBT LEVERAGE, RIGHT, BECAUSE WE'RE GOING TO HAVE THE CASH COMING IN.

BUT IF WE DON'T NEED THEM, WE CAN JUST CONTINUE TO MAINTAIN AND DO IT BY CASH.

I MEAN, SO THAT WOULD BE MY POINT IS IT PUTS US IN A GOOD POSITION TO DO IT.

I DON'T NECESSARILY NOT NECESSARILY SAY NO, NO.

BUT THE OTHER SIDE OF THAT IS, YOU KNOW, WE DO IT.

IT'S $1.58.

IT HURTS A LITTLE BIT, YOU KNOW, DOLLAR 58 A MONTH.

BUT IT PUTS US IN A WAY, BETTER POSITION TO TAKE CARE OF THE THINGS THAT NEED TO BE TAKEN CARE OF.

SO WE HAVE ISSUES, RIGHT? WE'VE IDENTIFIED THOSE THROUGHOUT THE FLOOD.

AND I THINK MOVING FORWARD IS WE NEED TO DO WHAT'S BEST FOR, YOU KNOW, THE CITY OF AMARILLO AND IN THE FUTURE.

YOU KNOW, MY OPINION IS KIND OF.

IT DOES LOOK LIKE A STICKER SHOCK, IN MY OPINION.

47.1 RATE INCREASE.

BUT WHEN YOU LOOK AT THE NUMBERS, I MEAN, WHAT ARE WE SETTING FOR THE FUTURE OF THE CITY, YOU KNOW, LONG WHEN WE'RE GONE? YOU KNOW, MY QUESTION, ALAN, IS ON THIS LIST.

ARE THESE IN ANY CERTAIN ORDER OF PRIORITY?

[01:25:04]

GENERALLY, THE ONES AT THE TOP WERE THE ONES THAT WERE ON PREVIOUS SCENARIOS.

AND SO THOSE ARE A LITTLE BIT MORE OF A PRIORITY.

YOU SEE OVER THERE THE COLUMN, THAT'S THE DEPARTMENT RANK.

I PROBABLY SHOULD HAVE EVEN TAKEN THAT OFF BECAUSE IT'S A LITTLE BIT MISLEADING WHAT THAT IS.

THAT REALLY IS HOW IT IMPACTS SPECIFICALLY JUST THE DRAINAGE UTILITY DEPARTMENT AND THEIR ABILITY TO TO, YOU KNOW, THIS WILL HAVE A BIGGER OPERATIONAL IMPACT.

THAT DOESN'T NECESSARILY MEAN IT'S THE BIGGEST PRIORITY.

UM, BUT YEAH, I THINK THEY GENERALLY ARE IN PRIORITY ORDER TO VERY LONG WAY TO SAY YES I APPRECIATE THAT.

SORRY ABOUT THAT. NO, YOU'RE FINE MAN.

UM, SO I MEAN, ME PERSONALLY, I'D BE LEANING ON THAT LAST SCENARIO.

I MEAN, I JUST LOOK AT THE BENEFITS OF IT AND HOW MUCH OF AN IMPROVEMENT WILL BE TO THE COMMUNITY NOT ONLY NOW, BUT MOVING FORWARD, YOU KNOW, IN FUTURE YEARS.

UM. THAT'S MY OPINION.

SO WHEN YOU GET INTO. I WANT TO THINK ABOUT IT.

OKAY. I WOULD ADD ONE OTHER THING IS, YOU KNOW.

I MEAN, AND I KNOW WE'RE THINKING LONGER TERM AND TRYING TO FIGURE OUT HOW WE'RE GOING TO APPROACH THINGS, AT LEAST FOR THE TWO YEARS.

I MEAN, WE WILL YOU KNOW, WE WILL HAVE ANOTHER BITE AT THIS APPLE A YEAR FROM NOW AT LEAST THIS COUNCIL WOULD.

AND, YOU KNOW, AGAIN, AT THAT POINT, IF WE'VE DONE WHAT WE'VE DONE AND WE'VE PROVEN GOOD STEWARDS OF OF THE, YOU KNOW, THE RESOURCES THAT WE'VE BEEN GIVEN, I MEAN, MAYBE THERE WOULD BE A CHANCE TO CATCH UP EVEN MORE THE SECOND TIME AROUND ON THIS.

RIGHT? I CERTAINLY I MEAN, LISTEN, IN THE IDEAL WORLD, I WOULD SAY, MAN, LET'S LET'S LET'S I TOTALLY BELIEVE IN THE INVESTMENT.

BUT I'M JUST TRYING TO THINK ABOUT KIND OF WHERE WE ARE WITH THE PUBLIC ON THIS ISSUE AND DRAINAGE FEES.

AND I THINK WE'VE DONE A LOT OF GOOD THINGS.

I THINK THEY'RE NOT TOTALLY AWARE OF IT.

AND THEN JUST JUST REALLY, YOU KNOW, EMPHASIZING NO MATTER WHAT THE INCREASE IS IN THIS YEAR, THAT WE'RE, YOU KNOW, THAT WE'RE DOING THINGS THAT ARE GETTING THEM ACCOMPLISHED AND MAKING SURE THAT PEOPLE ARE AWARE OF THESE PROJECTS AND WHAT WE'RE DOING AND THAT WE REPORT AS BEST AS THEY DON'T WANT TO HEAR IT.

YOU HAVE WE DO REPORT THAT WHEN THE PLANES LANDED SAFELY, BECAUSE THAT'S WHAT THIS INVESTMENT HAS ALLOWED US TO DO IN A LOT OF CASES.

SO WE'VE GOT A FEW CITIZENS IN THE AUDIENCE, NOT MANY.

OBVIOUSLY, THERE'S OPPORTUNITY TO TO GET UP AND SPEAK.

IF ANYBODY WANTED TO TO, YOU KNOW, WEIGH IN ON THIS.

WE'RE NOT TRYING TO MAKE A DECISION HERE TODAY.

BUT WHAT WE ARE TRYING TO GET ONTO A PATH FORWARD AND I THINK WE'RE DOING A GOOD JOB OF JUST LAYING OUT TWO DIFFERENT ROADS, TWO DIFFERENT METHODS THAT ARE STILL BOTH GOOD ROADS. SO YOUR DEPARTMENT IS NOT SITTING HERE LOOKING AT A COUNCIL THAT SAYS, WELL, I JUST THINK WE SHOULD STAY FLAT.

AND, YOU KNOW, LET'S NOT LET'S NOT BORROW ANY MONEY.

LET'S NOT SPEND ANY MONEY. LET'S JUST GO STREET SWEEP STREETS AND HOPE IT NEVER RAINS AGAIN.

THAT'S NOT WHERE WE ARE.

UM, LET ME GIVE MY OPINION BRIEFLY AND AND JUST LEAVE IT AT THAT BECAUSE WE WE'VE GOT.

A COUPLE OF WEEKS TO COME BACK AND WE CAN RELOOK AT THIS AND WE'VE GOT A COUPLE MORE WEEKS BEFORE WE'VE GOT TO GET COMFORTABLE WITH THIS.

WE KNOW THROUGH PREVIOUS BUDGET WORKSHOPS THAT WHEN WE HAVE GOOD IN-DEPTH CONVERSATIONS LIKE THESE ABOUT TOPICS THAT HIT OUR PUBLIC, WE NORMALLY RECEIVE SOME EMAILS OR SOME SOME MESSAGES.

AND SO I WOULD THINK THAT IF WE WERE HAVING THIS MUCH OF A CONVERSATION WITH SUCH A HIGH MARKUP OF 50% INCREASE BEING THROWN OUT THERE WHERE WE'RE NOT TRYING TO SHADE THESE NUMBERS, WE DON'T HAVE A PRESENTATION HERE.

I HAVEN'T WALKED YOU DOWN A ROAD THAT I WANT YOU TO GO DOWN.

I MEAN, YEAH, I GET THAT IT'S ONLY $1.50 MORE A MONTH FOR MY HOUSE.

RIGHT? BUT I ALSO GET THAT IT'S A 50% INCREASE.

AND I WANT TO KNOW IF YOU'RE CHARGING ME FOR SOMETHING, WHAT SHOULD MY EXPECTATIONS BE? I THINK ON THE POLITICAL SIDE OF BEING YOUR ELECTED REPRESENTATIVES, I FEEL LIKE IF I RAISE IT 5% OR 50%, I PROBABLY GET THE SAME FEEL PUSHBACK.

EITHER WAY, I DON'T FEEL LIKE THIS IS A MONETARY OR A NOMINAL VALUE ISSUE.

I FEEL LIKE THIS IS A PRINCIPAL ISSUE.

PRINCIPALLY, I DON'T LIKE THE FACT THAT YOU'RE CHARGING ME TO DO A JOB THAT I'D LIKE YOU TO DO CHARGING ME THROUGH MY TAXES.

WELL, I JUST DON'T PHILOSOPHICALLY UNDERSTAND THAT I'M CHARGING YOU EITHER WAY.

AND WE ALL GET THE BENEFIT OF THIS, AND WE SEE THAT WHEN WE DON'T WHEN WE HAVE A FLOODING EVENT LIKE WE'VE HAD NOW, WE NEED TO GIVE THEM THE BENEFIT OF THIS.

AND I FOR ONE, WOULD RATHER HAVE A PLAN THAT THAT TAKES ON THE FULL BURDEN AND THE FULL COST ALL AT ONCE.

AND I'LL USE ANOTHER TERM THAT PROBABLY IS GOING TO COME BACK.

I FEEL NICKEL AND DIMED.

I JUST I'M NOT AN INCREMENT GUY REALLY.

[01:30:03]

I JUST DON'T LIKE THE CONSTANT 5% AND THERE ARE TIMES THAT YOU HAVE TO DO THAT, ESPECIALLY WHEN YOU'RE TALKING ABOUT PERSONNEL SERVICES AND THINGS THAT ARE MORE SERVICE ORIENTED. IN THIS ONE, THIS IS VERY CONSTRUCTION BASED.

YOU KNOW, LET'S JUST DEAL WITH WHAT THE COSTS ARE AND THEN LET'S MOVE FORWARD.

THIS IS MY OPINION.

I PROBABLY AM MORE ON THAT SIDE.

HOWEVER, I'M NOT GOING TO GET MY FEELINGS HURT IF IF WE COMMUNICATE, HEY, IN ORDER TO DO THIS JOB, WE'RE GOING TO RAISE THIS, SAY, 10%, BUT YOU SHOULD EXPECT ANOTHER INCREASE.

AND WE'RE WE'RE ONLY RAISING IT TEN.

WE REALLY NEEDED TO RAISE IT 50, IN MY OPINION.

AND SO I CAN GET ON BOARD WITH WITH WHICHEVER WAY THE TEAM WANTS TO GO.

AND I BELIEVE STAFF COULD AS WELL BECAUSE BECAUSE PLANNING IS IS SOMETHING THAT'S IMPORTANT.

SO NEITHER IS WRONG.

BUT BUT YOU SHOULD HAVE A BIAS ON WHICH ONE YOU THINK IS PROBABLY MORE RIGHT.

AND I DEFINITELY UNDERSTAND WHERE YOU'RE COMING FROM.

AND I SEE SOME WISDOM IN THAT AS WELL.

HOW MUCH THE ANSWER TO THE QUESTION I HEARD YOU SAY COUNCILMAN WAS HOW MUCH CAN WE LEARN OVER THE NEXT YEAR BEFORE WE BEFORE WE GO FASTER? AND SO GOING SLOWER HELPS US TO KNOW, OH, WELL, I'M GLAD WE DIDN'T GO TOO FAST BECAUSE THEN WE WOULD HAVE MISSED OUT ON THESE OTHER OPPORTUNITIES.

WE DIDN'T KNOW ENOUGH.

LOOKING AT WHAT I HAVE RIGHT HERE WITH FLOYD AND WITH STAFF, I'M NOT AS CONCERNED.

I HAVE A PRETTY BIG COMFORT LEVEL THAT HE'S NOT GOING TO LEARN MUCH MORE IN THE NEXT YEAR AS TO LIKE, WOULD THIS HAVE CHANGED THE SIZE OF THE PUMP OR THE SIZE OF A CHANNEL, OR WOULD YOU HAVE REPRIORITIZED A PROJECT? I DON'T THINK THAT'S THE QUESTION I'M REALLY TRYING TO GET ANSWERED, BUT IT IS A GOOD QUESTION TO ASK.

SO DO I HAVE SOMEBODY WHO'S WANTING TO SAY SOMETHING? SIR, IF YOU DON'T MIND, IF YOU STEP OVER TO THE MICROPHONE, I DON'T CARE.

I JUST WANT TO BE SURE YOU GET THAT MICROPHONE JUST REAL CLOSE UP THERE SO WE CAN HEAR YOU GOT A SONG FOR Y'ALL THIS MORNING.

NOW. HEY, BEFORE YOU.

I KNOW HOW TO TURN THEM ON BEFORE YOU SAY ANYTHING.

YES, SIR. I KNOW YOU DON'T MIND BEING CRITICAL OF CERTAIN THINGS IN THE BUDGET, AND YOU'RE HERE OF YOUR OWN VOLITION.

NO ONE'S ASKING YOU TO BE HERE.

RIGHT THERE, JAMES. NO ONE'S FORCING ME TO BE HERE.

I'M HERE UNDER MY OWN.

WAKING UP REALLY EARLY, HAVING MY SMOOTHIE WAY BEFORE I USUALLY DO AND MAKING IT DOWN HERE.

HEY, I CAN APPRECIATE THIS CONVERSATION.

I WAS HERE WHEN THIS DRAINAGE STUFF STARTED WATCHING THIS GO INTO EFFECT.

THERE WAS A BIG AN ELECTION, YOU KNOW, AND IT GOT PUT ON THE BALLOT.

AND PEOPLE SAW THAT EVEN AT THAT TIME, A GENTLEMAN NAMED BILL SUMMERFORD PUT INTO THE THING, HEY, WE'RE AGAINST THIS.

YOU KNOW, WE DON'T WANT THIS TO GO ON BECAUSE IT'S THAT FEE THAT GOES INTO THE ENTERPRISE OPERATION THAT WE LOSE VOTER APPROVAL OVER BECAUSE YOU AS A COUNCIL CAN START MOVING IT WHICHEVER WAY YOU WANT.

THE $3.23 OR WHATEVER IT MOVED UP TO, IT WAS 2.56 AND IT MOVED UP A DOLLAR.

AND I REALIZED THAT'S I'M GETTING OFF IN THE WEEDS.

LET ME JUST CUT TO THE CHASE.

WHAT YOU'RE ASKING ON THOSE TWO THINGS THAT I'M HEARING.

LET'S GET ALL THE MONEY AT ONCE AND LET'S GET READY TO MAKE THESE PROJECTS HAPPEN.

SIMILAR THING HAPPENED IN OUR BOND ELECTION WITH THE STREETS.

LET'S GET ALL THAT MONEY.

BUT WE DIDN'T GO BECAUSE OF THAT.

WE DIDN'T GO GET ALL THAT MONEY AT ONCE.

WE WAITED AND I DON'T KNOW THAT THE MONEY GOT ANY CHEAPER.

AM I RIGHT, FLOYD? SO THE ACTUAL DEBT ISSUANCES GOT CHEAPER.

WE SAVED A LOT ON INTEREST RATES BY STAGGERING IT.

BUT I CAN'T SPEAK TO THE CONSTRUCTION SIDE OF IT.

SO BUT AND WE DID TELL CITIZENS INFLATION DURING THAT PERIOD.

YEAH, BUT WE DID TELL CITIZENS WE WERE GOING TO STAGGER THOSE DEBT ISSUANCES AS NEEDED.

SO.. SO IF WE'VE WE'VE GOT THAT INTEREST RATE BOOGALOO GOING ON, WHICH COULD GO DOWN IN OUR FAVOR AND IT COULD GO UP IN OUR DISFAVOR.

IF IT WENT UP, IT WOULDN'T, IT WOULD IT WOULDN'T HURT US IF WE LOCKED IT IN RIGHT NOW.

IF WE DO THESE 5% INCREMENTS OR, YOU KNOW, 5 OR 10.

THE CITIZENS SPEAKING AS ONE.

THAT'S GOING TO BE A LITTLE MORE COMFORTABLE.

BUT WHAT WE'VE WHAT YOU'VE GOT TO CONSIDER DOING IS SELLING THIS.

MOST PEOPLE DON'T KNOW THIS PAGE RIGHT HERE.

AND I DO I WATCH THIS WHEN I MAKE COMMENTS ON ANYTHING THAT I DO.

HEY, HANG ON A MINUTE, AT 45TH AND WESTERN, IT'S GOING TO GO DON'T DRIVE THERE RIGHT NOW.

AND THE FLOOD'S GOING TO GO DOWN, YOU KNOW, NOW THIS LAST ONE.

[01:35:01]

I JUST, I HATE GETTING ALL THE MONEY AT ONCE BECAUSE THAT GOES ON THE BILL FOR EVERYBODY.

IF YOU CAN SELL IT, YEAH, I DON'T KNOW THAT YOU EVEN HAVE TO SELL IT.

YOU CAN JUST APPROVE IT. SEE, THAT'S THE PROBLEM.

YOU DON'T HAVE TO GO FOR A VOTE OF APPROVAL ON THAT.

SO I DON'T KNOW WHAT THE REST OF THE PUBLIC CAN'T SPEAK FOR EVERYBODY, BUT WE MAYBE GO HALF.

YEAH. AND MAYBE MAYBE IT'S NOT AN EITHER OR.

MAYBE IT'S BOTH. MAYBE WHAT I'M LAYING OUT HERE IS, IS JUST TWO PATHWAYS IN A GOOD DIRECTION.

AND THERE'S A THERE'S A MIDDLE GROUND RIGHT THERE THAT WE NEED TO LOOK FOR.

SO THANK YOU FOR LETTING ME.

YES, SIR. APPRECIATE YOU.

AND WE ARE GOING SLOW.

SO LIKE WE'RE DRAGGING THIS BUDGET OUT JUST AS LONG AS ANYBODY HAS EVER THOUGHT POSSIBLE.

AND THIS IS WHY.

AND WE'RE GOING TO COME BACK. SO I WOULD LOVE TO HAVE FURTHER DISCUSSION ON THIS HERE.

I KNOW WE'VE GOT A LITTLE TIME BEFORE OUR TEN.

HOW ARE WE DOING IF WE WANT TO KEEP TALKING ON THIS, MISS LAURA.

SO YEAH, WE'VE GOT ABOUT 20 MINUTES BEFORE 10:00.

WE ARE GOING MAYBE A LITTLE SLOWER THAN ANTICIPATED, BUT THAT'S PERFECTLY FINE.

WE CAN WE CAN WORK THROUGH THIS.

ONE THING I DID WANT TO NOTE REAL QUICK AND I APOLOGIZE FOR THIS.

ON THE HANDOUT HERE, IF YOU GO TO THE 18% SCENARIO, I THINK WE HAD PUT IN THE WRONG INCREASED RATES. AND SO JUST WANTED YOU ALL TO NOTE THOSE ON HERE.

ALL THE OTHER ONES ARE IN GOOD SHAPE.

IT'S JUST THE 18% ONE IF YOU'LL TURN TO THAT PAGE.

SO A SMALL RESIDENTIAL WOULD GO FROM 229 TO TO 270 PER MONTH.

A TYPICAL RESIDENTIAL AND THE COMMERCIAL PER 2800FT² WOULD GO FROM 336 PER MONTH TO 396 PER MONTH. AND THEN FINALLY THAT LARGE RESIDENTIAL WOULD GO FROM 508 PER MONTH TO 599 PER MONTH.

AND I APOLOGIZE ON THAT.

JUST TYPO ON MY PART.

SO YEAH, I APPRECIATE YOU CORRECTING THAT.

WHEN'S THE LAST TIME WE RAISED THE DRAINAGE FEE? WE ACTUALLY DID THIS YEAR.

SO YEAH, WE. WE RAISED IT.

I'M LOOKING OVER AT FLOYD FOR 3%.

WE HAD A DEBT ISSUE.

OH, I'M SORRY. YEAH.

THEN WE DID A 5% RATE INCREASE.

SO PART OF IT WAS FOR INFLATIONARY INCREASES AND THEN THE REST WAS TO DO A $5 MILLION DEBT ISSUANCE.

AND DURING THE COURSE OF THIS DRAINAGE FEE IS INCREASED BY AN ANNUAL OR HOW MANY TIMES HAVE WE INCREASED IT? SO COURSE OF THE LAST WE WE DID IT FIVE YEARS IN A ROW.

THAT WAS A PLANNED THAT WAS PLANNED IN CONJUNCTION WITH A FIVE YEAR CAPITAL IMPROVEMENT PLAN.

THERE WERE FIVE 4% RATE INCREASES AND I'LL HAVE TO LOOK BACK AT THE YEAR IT STARTED, BUT THAT WAS COMPLETED I THINK TWO YEARS AGO.

THE FIVE YEARS OF THE 4% INCREASES PRIOR TO THAT, I DON'T KNOW THAT WE HAD ANY SINCE 2012 .

WHEN THEY CREATED IT.

THERE WAS A COMMITMENT NOT TO RAISE IT AT ALL FOR THE FIRST FIVE YEARS.

YES. AND THEN WE.

SORRY. WELL, I WAS JUST GOING TO SAY THE NOT THE PREVIOUS COUNCIL, BUT THE COUNCIL PRIOR TO THAT WITH WITH MAYOR HARPOLE AS MAYOR IN 2015, THEY MADE A PLAN TO START A THE FIVE YEAR, FIVE YEARS OF 5% INCREASES IN 2016.

WHEN IT CAME TIME TO DO THE 2016 BUDGET, THEY DEFERRED THAT INCREASE TO THE FOLLOWING YEAR.

SO THEN IT WAS THE FALL OF 2017 WHEN THEY STARTED THE FIVE YEARS OF 5%, THEY WENT THROUGH THAT AND THEN EVERYTHING SINCE THEN HAS BEEN PROJECT OR INFLATION SPECIFIC.

DISCUSSION. I THINK COUNCILMAN SIMPSON I THINK WHAT YOU WERE SAYING, BECAUSE HE'S A MASTER AT COMMUNICATION, OBVIOUSLY WHERE HE COMES FROM, LIKE HE'S SO GOOD AND HE, AND HE REMINDS US ALL THAT THAT'S WHAT WE NEED.

AND I THINK TO MR. SCHENCK COMMENTS IS TO SHOW THE PUBLIC.

LIKE LIKE MR. SCHENCK SAID, NOBODY PROBABLY KNOWS ABOUT THIS.

RIGHT. IT'S OUT THERE.

BUT I DON'T KNOW HOW GOOD OF A JOB WE'VE DONE TO GET IT OUT THERE, BUT IT'S OUT THERE FOR THE PEOPLE THAT WANT TO SEE IT, BUT MOST PEOPLE DON'T WANT TO SEE IT.

RIGHT. I MEAN, IT'S THEY JUST DON'T.

RIGHT. BUT THEY WILL, YOU KNOW, COMPLAIN, YOU KNOW, WHEN IT GOES UP OR WHATEVER.

BUT, YOU KNOW, TO YOUR POINT, THE COUNCILMAN SIMPSON'S POINT, I THINK WHAT WHAT HE'S SAYING, TOO, IS THEY NEED TO SEE WHAT THIS IS, WHERE THIS MONEY'S GOING.

AND I DON'T THINK WE'VE ALL RECEIVED COMMENTS OF AFTER THE FLOOD, OBVIOUSLY, OF WHERE'S THIS DRAINAGE FEE GOING? I'LL SEE ANYTHING.

I HAVEN'T SEEN ANYTHING, YOU KNOW.

YOU KNOW, AND IT GOES BACK TO COMMUNICATION, I THINK.

[01:40:04]

WE'RE NOT WE'RE NOT COMMUNICATING WHAT'S GOING ON.

WE'RE NOT WE ALL KNOW.

RIGHT. I MEAN, I KNOW A LOT MORE NOW THAN I DID EIGHT MONTHS AGO.

I'LL PROMISE YOU THAT.

I WAS ONE OF THOSE CITIZENS THAT THOUGHT I JUST IT JUST WORKS, RIGHT.

SO I THINK, YOU KNOW, TO COUNCILMAN SIMPSON'S POINT, IS THAT MAYBE THE THE INCREMENTAL IS, LIKE YOU SAID, WE GET ANOTHER BITE AT THIS APPLE IN A YEAR IS TO SAY, HEY, LET'S SEE HOW GOOD OF A JOB WE CAN DO TO COMMUNICATE ONE, TO GET TO THROW ALL THIS OUT THERE TO SAY, HEY, THIS IS WHAT WE'VE DONE AND THESE ARE THE VICTORIES WE'VE HAD. THE PLANES LANDING TENDS TO BE, YOU KNOW, LOVE HIS ANALOGY, BOTH THESE GUYS.

UH, THAT'S A GREAT ANALOGY.

I MEAN, WE LOOK AT THE FLOOD AND THINK, GOD, WHAT A FAIL MAN.

THE CITY IS DOING TERRIBLE JOB.

IT'S JUST FLOODED. YOU KNOW, PUMPS AREN'T WORKING, YOU KNOW, BLAH, BLAH, BLAH, BLAH, BLAH.

HOWEVER, THERE WERE A LOT OF GOOD THINGS AND I DON'T KNOW, I THINK WE MISSED AN OPPORTUNITY.

AND AGAIN, LES TELLS US ALL THE TIME, TIME IS OF THE ESSENCE.

IF WE DO NOT REPORT ON THE THINGS THAT ARE GOOD, WE MISS THE OPPORTUNITY.

WE CAN'T GO BACK AND SAY, LOOK HOW GOOD OF A JOB WE DID.

PEOPLE, PEOPLE JUST DON'T CARE.

I MEAN, YOU KNOW, UNLESS IT'S AT THE TIME GOING, HEY, WE PUT ALL THIS MONEY IN MARTIN ROAD, LOOK HOW WELL IT'S WORKING.

BUT WE DIDN'T WE DIDN'T CAPITALIZE ON THAT.

AND I DON'T THINK WE'RE DOING A GREAT JOB.

I THINK THIS COUNCIL IS REALLY TRYING.

AND AGAIN. LES FROM USERNAME A LOT, BUT BUT HE'S THE ONE THAT ALWAYS POINTS IT OUT AND SAY, HEY, WE GOT TO GET THIS OUT.

HE'S TALKING TO THE COMMUNICATIONS SAYING, HEY, WE'VE GOT TO REPORT ON THIS TODAY, NOT NEXT WEEK, NOT WHATEVER.

UM, SO I THINK TO MR. SCHANKE'S POINT TWO IS TO GET BUY IN.

YOU KNOW, EITHER IT'S LIKE WE ASK, YOU KNOW, THE, THE CITIZENS, HEY, TRUST US, WE'RE A NEW COUNCIL.

YOU KNOW, IF YOU GIVE US THIS MONEY, WE'RE GOING TO DIRECT THAT THIS IS DONE.

YOU'RE GOING TO SEE THE PROJECTS OR, YOU KNOW, WAIT AND YOU CAN SEE WHAT THESE GUYS ARE DOING AND SHOW THAT THESE FUNDS ARE BEING PROPERLY USED SO THAT YOU YOU CAN GET THE BUY IN TO SAY, YOU KNOW WHAT, I'M OKAY WITH ANOTHER $0.50 OR I'M OKAY WITH ANOTHER SET, WHATEVER IT IS TO SAY, YOU KNOW WHAT, I'M OKAY WITH THAT.

YOU KNOW, I SEE WHAT'S GOING ON.

I SEE THE PROJECTS THAT THESE GUYS ARE DOING, WHETHER IT IMPACTS ME, WHETHER IT'S MY NEIGHBORHOOD OR NOT, MY NEIGHBORHOOD, I AT LEAST SEE THAT IT'S BEING DONE AND IT'S GOING TO BE A BENEFIT TO THE CITY.

YOU KNOW, UM, JUST TO SAY ALL THAT, I THINK THAT THOSE ARE THE TWO.

AND LIKE I SAID, THERE MIGHT BE MORE THAN TWO ROADS.

LIKE MAYOR SAID, YOU KNOW, WE'RE LOOKING AT TWO.

THERE'S PROBABLY A LOT MORE THAN THAT.

YOU KNOW, MAYBE WE TAKE A LITTLE BIT BIGGER CHUNK NOW AND THEN SPREAD IT OUT OR WHEN WE SPREAD IT OUT AND TAKE A BIG ANOTHER BITE AT THE APPLE IN A YEAR, I DON'T KNOW.

BUT I THINK THERE'S A LOT TO LOOK AT AND IT'S A MATTER OF TRUST AND THAT THE COMMUNITY SEES THAT, YOU KNOW, HEY, MY DOLLARS ARE AT WORK.

YOU KNOW, I THINK THAT'S THE BIGGEST THING WITH TAXPAYERS OR A FEE, WHATEVER YOU WANT TO CALL IT.

I THINK THEY'VE JUST GOT TO SEE THAT IT'S WORKING.

YOU KNOW, WE'RE AND WE'RE MAKING PROGRESS AND WE'RE DOING THINGS.

SO. OKAY.

NO, I APPRECIATE THAT INPUT.

I THINK YES, I THINK THERE'S THAT OPPORTUNITY FOR US TO STAFF TO PROVIDE THAT.

AND WE'RE WE CAN DEFINITELY MOVE FORWARD IN THAT.

MY QUESTION TO YOU ALL IS, DOES DO YOU NEED MORE INFORMATION? DO YOU NEED FROM US BESIDES THAT COMPONENT? WHAT DO YOU NEED FOR US TO HELP YOU THINK ABOUT IT TILL THE NEXT TIME TO TO MAKE A DECISION? WHAT MORE INFORMATION CAN WE PROVIDE FOR YOU AND HOW CAN WE HELP YOU GET TO WHERE WE CAN DECIDE WHICH ONE OF THESE PATHS YOU WOULD LIKE? CORRECT? YEAH. NO, FOR FOR ME, I FEEL LIKE YOU'VE DONE A REALLY GOOD JOB OF LAYING IT OUT.

I HAVE A REALLY GOOD UNDERSTANDING THROUGH THE EVENT WE'VE GONE THROUGH THAT I WOULDN'T HAVE NORMALLY HAD THE PAST HOUR, HOUR AND A HALF.

YOU HAVE JUST EXPERIENCED TYPICAL CAPITAL PLANNING.

I MEAN, WHETHER IT'S STREETS, WATER, THIS IS JUST EXACTLY WHAT THIS TEAM DOES IN THE PLANNING COMPONENT, TRYING TO FEEL THE POLITICAL SIDE OF WHAT LEVEL DO WE PROPOSE THINGS, WHO'S PAYING FOR WHAT.

THIS IS JUST A TYPICAL DISCUSSION IN CAPITAL PLANNING.

FROM THAT PERSPECTIVE, WE DO TAKE YOUR POINT ON THE COMMUNICATION COMPONENT AND APPRECIATE THAT INPUT.

AGAIN, I THINK IT'S JUST ABOUT CONSUMING THIS AND HAVING A DISCUSSION AND MAYBE NEXT TIME WE GET TOGETHER WE CAN DEFINE BETTER WHICH ONE WE'D LIKE TO SEE MOVE FORWARD.

OKAY. IS THAT WHERE WE'RE AT? IT'S WHERE IT'S WHERE I WOULD BE.

DOES ANYBODY HAVE ANY OTHER DIRECTION FOR STAFF THAT YOU WANT THEM TO GO AND GET ANY ADDITIONAL INFORMATION? ARE YOU OKAY? I JUST WANT TO DO MY HOMEWORK, THAT'S ALL.

I WANT TO DO ONE THING.

IF YOU HAVE JUST A LIST OF THE YEARS AND THE RATE INCREASES FOR EACH YEAR, ABSOLUTELY.

THAT WOULD BE SOMETHING I THINK I'D LIKE TO SEE JUST WHAT OUR HISTORY ON THE RATE INCREASE.

YEAH, WE'LL PROVIDE THAT AND WE'LL GET A COMPREHENSIVE LIST OF PROJECTS.

THOSE TWO WOULD BE HELPFUL.

[01:45:01]

WE HAD WE RAN A COUPLE OTHER SCENARIOS RELATED TO SOLID WASTE RATE INCREASES.

IF YOU WANT US JUST TO QUICKLY MAYBE EXPLAIN THAT TO YOU ALL.

OTHERWISE, IF YOU ALL WANTED TO TAKE A QUICK BREAK, WE'RE PRETTY MUCH READY TO START EDC.

SO WHATEVER YOU WANT TO DO, WHAT DO YOU SEE? YOU GUYS ARE HERE. WE'LL DO A EDC, THEN WE'LL COME BACK.

YOU HAVE A COUPLE OF OTHER ONES YOU NEED TO CATCH.

WE'VE GOT SOLID WASTE STREETS, TRAFFIC AND POSSIBLY PUBLIC WORKS AND FLEET WITH WITH ALAN AND HIS TEAM.

SO EDC IS GOING TO BE A PRETTY GOOD TOPIC TO GO INTO, I THINK.

SO LET'S TAKE A TEN MINUTE BREAK.

LET'S COME BACK AT TEN AND THEN WE'LL GO THROUGH THERE AND THEN WE'LL JUMP BACK IN WITH YOU.

WE'LL JUST WORK THROUGH LUNCH, KIND OF EAT AS WE GO AND MAKE THE MOST OF OUR TIME HERE UP UNTIL LIKE 130, 145, TEN MINUTE RECESS, GUYS.

THANK YOU. YOU'LL TAKE OVER HERE FOR A MINUTE.

OKAY. CAN YOU HEAR ME? YES. ALL RIGHT.

MAYOR AND COUNCIL, THANKS FOR THE OPPORTUNITY TO BE HERE THIS MORNING.

I'M GOING TO DO THIS A LITTLE BIT DIFFERENTLY THAN MOST OF THE BUDGET PRESENTATIONS.

I'M GOING TO KIND OF DO AN AEDC ORIENTATION, AND THAT'S HANDED EACH OF Y'ALL A BOOK THAT HAS SOME STUFF IN IT.

AND I WILL SAY THAT AFTER PASSING OUT THE BOOKS, ONE OF Y'ALL ARE KIND OF NEAT FREAK LIKE ME, AND IT'S NOT ANY OF YOU FOR DOWN HERE.

SO JOSH, I APPRECIATE YOUR LITTLE NEAT AREA WHEN I HANDED OUT YOUR BOOK ANYWAY.

YEAH. OH, OKAY.

I GOT YOU, DON. OKAY.

ANYWAY, I APPRECIATE THE COUNCIL FOR BEING HERE AND WANTING TO LOOK INTO THIS PROCESS AND CERTAINLY HOPE THAT I CAN GIVE SOME GREAT INFORMATION TO Y'ALL, SOME HISTORY AND BACKGROUND OF THE ORGANIZATION, AND I WOULD LOVE TO DO THIS CONVERSATIONAL STYLE.

SO IF YOU HAVE A QUESTION RIGHT IN THE MIDDLE, JUST, YOU KNOW, HOLLER AT ME AND AND LET'S DO THAT.

BEFORE I GET STARTED, THOUGH, I DO WANT TO INTRODUCE THE FIVE MEMBERS OF THE AEDC BOARD.

THEY'RE ALL HERE THIS MORNING, SO I APPRECIATE THEM TAKING THEIR TIME OUT, JUST LIKE YOU ALL ARE, TAKING YOUR TIME OUT.

AND SO I WANT TO INTRODUCE TO MY RIGHT HERE IS ANDREW HALL.

HE'S OUR CHAIR.

TO HIS IMMEDIATE RIGHT IS LLOYD BROWN.

HE'S A PAST CHAIR. HE'S OUR LONGEST SERVING BOARD MEMBER.

THIS IS HIS LAST YEAR OF TWO.

YOU GET YOU GET TO DO TWO, THREE YEAR TERMS AND THIS IS HIS SIXTH YEAR ON OUR BOARD.

AND SO WE APPRECIATE LLOYD HE'S OUR SENIOR MEMBER OF OUR BOARD AND THEN BEHIND I HAVE SCOTT BENTLEY.

HE'S OUR PAST IMMEDIATE PAST CHAIR.

AND THEN I HAVE HELEN BURTON AND THEN ALSO OUR VICE CHAIR, ADRIAN MEANDER.

SO APPRECIATE THEM BEING HERE THIS MORNING.

SO THE AEDC WAS FORMED IN 1990 AND IT'S GOVERNED BY TWO BASICALLY TWO STATUTES IN THE TEXAS GOVERNMENT CODE.

THOSE ARE CHAPTERS 501 AND 504, AND THAT'S IN TAB ONE OF YOUR BOOK THERE.

AND I'M SORRY THAT IT'S A LITTLE CRAMMED.

AND THE FIRST, ONCE YOU GET THROUGH ABOUT THE FIRST TEN PAGES, THEN IT'S EASIER TO TURN THE PAGES.

SO BUT THE AEDC WAS FORMED IN 1989 AS A RESULT OF A VOTE BY THE TAXPAYERS TO ALLOW A HALF CENT OF THE SALES TAX COLLECTED TO BE USED FOR ECONOMIC DEVELOPMENT.

AND I APPRECIATE THE HISTORY.

I THINK COUNCIL MEMBER SIMPSON POINTED OUT THAT ALSO DURING THAT VOTE A HALF CENT, IT WENT FROM SEVEN AND A 7:45 AND A QUARTER AND A HALF CENT OF THAT IS USED FOR PROPERTY TAX TO LOWER THE VALUE ON PROPERTY TAX.

THIS WAS A LAW PASSED IN 1989 TEXAS LEGISLATURE TO ALLOW SMALL CITIES AND COMMUNITIES LESS THAN 250,000.

IF YOU WERE LESS THAN 250 IN 1989, YOU'RE GRANDFATHERED IN TO BE ABLE TO COLLECT THAT TAX.

AND IT REALLY GAVE US THE ABILITY MID-SIZED CITIES AND SMALL COMMUNITIES GAVE US THE ABILITY TO COMPETE WITH THE LARGE METRO AREAS DALLAS, FORT WORTH, HOUSTON, AUSTIN, YOU KNOW, EL PASO, AMARILLO WAS THE THIRD CITY TO ADOPT THE SALES TAX.

ABILENE ACTUALLY WROTE A LOT OF THE SALES TAX LEGISLATION.

SO THEY WERE THE FIRST CITY.

I NEVER HAVE BEEN ABLE TO FIND OUT WHO THE SECOND CITY IS.

I'VE ALWAYS BEEN TOLD THAT WE WERE THE THIRD CITY, BUT I WOULD I WOULD SAY THAT IS ONE OF THE BIGGEST REASONS THAT WE WERE ABLE TO DIVERSIFY THE ECONOMY.

THAT, ALONG WITH OUR CITY LEADERS IN 1990 AFTER THE TAX WAS PASSED TO.

TO KNOW NOT ONLY, YOU KNOW, WE WANT TO EMBRACE OUR OIL AND GAS AND OUR AG HERITAGE, BUT ALSO TO DIVERSIFY OUR ECONOMY.

AND IT CERTAINLY HAS HELPED IN DIVERSIFYING OUR ECONOMY.

[01:50:01]

SO WE'RE NOT A DEPARTMENT OF THE CITY.

WE'RE A 500 AND 1C6 CORPORATION.

BUT IN THAT TEXAS GOVERNMENT CODE, THERE ARE SOME THINGS THAT ARE OUTLINED THAT THE CITY COUNCIL HAS TO DO ON AN ANNUAL BASIS FOR OUR BOARD TO EXIST AND FOR AEDC TO EXIST.

AND SO THAT CITY COUNCIL OVERSIGHT, ONE OF THOSE THINGS IS YOU ALL SELECT OUR BOARD.

THAT'S HAPPENED FROM THE VERY BEGINNING AND I'M GOING TO TALK ABOUT THAT A LITTLE BIT.

I'VE GOT THE ARTICLES OF INCORPORATION IN THE BYLAWS IN THERE.

BUT, YOU KNOW, ONE OF THE MAIN FUNCTION IS FOR YOU ALL TO SELECT OUR BOARD AND THEN YOU HAVE TO APPROVE OUR BUDGET, WHICH IS WHY WE'RE HERE TODAY.

AND THEN YOU ALSO HAVE TO APPROVE ANY PROJECT MONIES THAT ARE EXPENDED.

SO WHEN WE BRING A PROJECT WE DID THAT I THINK A COUPLE OF WEEKS AGO AND Y'ALL HAD TO GIVE THAT APPROVAL.

AND THEN THE BOARD HAS OVERSIGHT AS WELL.

THERE'S SOME INSTRUCTIONS IN THERE WHAT THE BOARD HAS TO DO.

THE BOARD HAS IS TASKED WITH APPROVING A BUDGET, APPROVING PROJECTS AND HIRING AND ALL THE ASSOCIATED DUTIES OF HIRING AND FIRING OF A AN EXECUTIVE.

BUT ALSO INCLUDED IN THOSE POLICIES ARE THE TYPES OF NGOS.

SO THERE'S TWO TYPES OF NGOS.

THERE'S TYPE A AND TYPE B.

THE FIRST ONE WAS IN 1989.

THAT'S TYPE A, THAT'S WHAT WE ARE.

IN 1994, THEN FORMER BEFORE HE WAS GOVERNOR BUSH GOT THE CITY OF ARLINGTON TO CREATE WHAT WAS CALLED THE TAP TAX, AND IT ACTUALLY ALLOWED FOR VENUES.

AND SO THE BALLPARK AT ARLINGTON WAS THE VERY FIRST PROJECT WITH THE TYPE B MONEY.

TYPICALLY, THOSE ARE RESERVED FOR SMALLER COMMUNITIES THAT WANT TO HELP WITH PARKS AND THOSE KIND OF THINGS.

BUT WE HAVE WE HAVE REMAINED A TYPE A WHICH DICTATES WHAT TYPE OF HOW THE MONEY CAN BE SPENT.

IT CAN ONLY BE SPENT ON PRIMARY JOBS.

AND A DEFINITION OF A PRIMARY JOB IS 51% OF THE GOODS OR SERVICES THAT ARE PRODUCED HAVE TO BE EXPORTED OUT OF THE FIVE COUNTY MSA AREA AND OUR FIVE COUNTY MSA IS POTTER, RANDALL OLDHAM, CARSON AND ARMSTRONG COUNTIES.

SO ANY PROJECT THAT WE DO HAS TO BE USED ON THOSE KIND OF PROJECTS.

AND THERE ARE CERTAIN NAICS CODES, SO SOME PRIMARY JOBS THAT ARE EXPORTED ARE NOT ELIGIBLE.

ONE OF THOSE BEING, YOU KNOW, WE'RE A REGIONAL HUB FOR HEALTH CARE.

HEALTH CARE IS NOT IS ONE OF THOSE THINGS THAT YOU CANNOT USE TYPE A OR B MONEY ON IS IS ANY TYPE OF HEALTH CARE PROJECT.

AND SO EVEN THOUGH THAT, YOU KNOW, SERVICE IS BEING EXPORTED, I WOULD VENTURE TO SAY THAT CLOSE TO HALF OF OUR TWO HOSPITALS, HALF OF THOSE FOLKS ARE COMING FROM OUTSIDE OF THAT AREA.

BUT IT'S JUST ONE OF THOSE THINGS.

AND IT ALSO IN THE IN THE STATUTE, IT ALSO GIVES EDC THE AUTHORITY TO ISSUE DEBT.

WE DO HAVE I THINK WE HAVE TWO NOTES.

AND THEN IT ALSO LIMITS THE ONE THING THAT YOU CAN SPEND MONEY ON AS A PERCENTAGE.

YOU CAN SPEND 10% OF YOUR TAX REVENUE ON MARKETING.

AND SO WE'VE NEVER APPROACHED THAT, AND I'LL TALK ABOUT THAT LATER ON THERE.

BUT THAT'S IT'S INTERESTING.

BUT THAT'S ONE NUMBER THAT IS IN THE STATUTE THAT SAYS YOU CAN SPEND NO MORE THAN 10% OF YOUR MONEY ON MARKETING EFFORTS.

SO IN TAB TWO, IT TALKS ABOUT ARTICLES OF INCORPORATION.

INCORPORATION. THE EDC WAS THE ARTICLES WERE FILED ON MARCH 5TH, 1990.

IN ACCORDANCE WITH THE CHAPTER 501 AND 501 504 TEXAS GOVERNMENT CODE.

IT'S INTERESTING TO LOOK AT THOSE ORIGINAL ARTICLES AND LOOK AT SEE WHO SOME OF OUR CITY LEADERS THAT ARE STILL INVOLVED WERE, OR FIVE OF THOSE ORIGINAL MEMBERS OF THAT BOARD.

IT'S REALLY NEAT TO LOOK BACK AT HISTORY AND SEE, YOU KNOW, 32 YEARS LATER, SOME OF THOSE FOLKS ARE STILL INVOLVED IN OUR COMMUNITY AND WE'RE VERY THANKFUL THAT THEY'RE INVOLVED IN OUR COMMUNITY. THE BYLAWS ARE IN TAB NUMBER THREE.

IT JUST TALKS ABOUT BOARD OFFICE POSITIONS.

YOU HAVE TO HAVE A YOU HAVE TO HAVE A CHAIR AND YOU HAVE TO HAVE A VICE CHAIR.

AND THEN YOU ALSO HAVE TO HAVE A SECRETARY THAT'S, YOU KNOW, OBVIOUSLY YOU HAVE TO HAVE A SECRETARY OF A 501.

C SIX. THE COMPTROLLER.

THE SECRETARY OF STATE DICTATES THAT.

BUT ONE OF THOSE THINGS IN THE BYLAWS IS THAT WE'RE AUDITED ANNUALLY BECAUSE WE'RE OUR OWN CORPORATION.

PART OF THE BYLAWS IS THAT WE HAVE TO HAVE AN INDEPENDENT AUDIT AND WE HAVE DONE THAT FOR THE LAST 30 PLUS YEARS.

ALSO, IN THOSE BYLAWS, IT DICTATES THAT THE CITY WILL BE OUR FISCAL AGENT.

THAT DOESN'T MEAN THAT WE'RE CITY EMPLOYEES.

WE DO PAY THE CITY A FEE EVERY MONTH FOR THEM TO KEEP OUR BOOKS.

[01:55:04]

IT'S A PASS THROUGH. PLUS, I THINK RIGHT NOW WE'RE PAYING CLOSE TO 33 OR $3400 A MONTH FOR THE CITY TO ADMINISTER OUR PAYROLL.

AND RETIREMENT.

ON TOP OF WHAT THE PAST THREE MONEY IS.

AND THEN AND THEN ALSO IN THE BYLAWS, IT SAYS WE HAVE TO GET A BUDGET APPROVED EVERY YEAR.

ANYBODY HAVE ANY QUESTIONS SO FAR? ON ONE THROUGH THREE BEFORE I GET GOING? OKAY. ALL RIGHT.

AND THEN WITH BEING AN INDEPENDENT ORGANIZATION, WE THOUGHT IT WAS IMPORTANT TO HAVE OUR A SET OF POLICIES AND PROCEDURES.

AND SO THAT'S WHAT'S IN TAB FOUR.

IT TALKS ABOUT OUR MISSIONS AND VALUE STATEMENTS.

IT TALKS ABOUT OUR HR POLICIES AND PROCEDURES.

AND FOR THE MOST PART, WE FOLLOW, YOU KNOW, A LOT OF WHAT THE CITY'S POLICIES AND PROCEDURES ARE.

BUT WE HAVE SOME THERE'S SOME CAVEATS IN THERE THAT ARE NOT OURS, THAT ARE NOT THEIRS THAT WE HAVE INDEPENDENTLY.

AND THEN IT ALSO TALKS ABOUT OUR TRAVEL EXPENDITURE POLICY.

WE DO A FAIR AMOUNT OF TRAVELING AND WE CERTAINLY WANT TO BE TRANSPARENT IN THE WAY THAT WE DO THAT TRAVELING.

AND SO WE HAVE TRAVEL, TRAVEL, EXPENDITURE FORMS. I SIGN OFF ON ALL OF STAFF TRAVEL EXCEPT MY OWN CHAIR, VICE CHAIR HAS TO SIGN OFF ON MY TRAVEL.

THAT'S A WAY TO CHECK AND BALANCE THAT.

I'M NOT SIGNING MY OWN TRAVEL VOW AND MONTHLY EXPENDITURES BECAUSE YOU NEED A SYSTEM OF CHECKS AND BALANCES.

AND SO THE CHAIR AND VICE CHAIR SIGN CHAIR OR VICE CHAIR SIGN OFF ON THOSE EXPENDITURES.

AND NUMBER FIVE IS ONE OF THE THINGS THAT I'M PROBABLY MOST PROUD OF.

AND WE GET A LOT OF QUESTIONS ASKED ABOUT THIS.

THIS MODEL, THIS PIECE OF THIS DOCUMENT RIGHT HERE IS PROBABLY GONE OUT TO 100 DIFFERENT EGOS IN THE STATE OR ECONOMIC DEVELOPMENT ORGANIZATIONS.

HATS OFF TO ANDREW FREEMAN FOR HELPING DRAFT THAT.

THIS WAS THIS PROCESS WAS GOING ON WHEN I GOT HERE IN APRIL OF 2019.

WE WERE IN THE IN IN SORT OF THE END OF GETTING IT ALL DRAFTED AND GOING THROUGH THE APPROVAL PROCESS.

IT IS A GREAT DOCUMENT.

IT OUTLINES WHAT INCENTIVES MAY BE OFFERED.

IT'S NOT A GUARANTEE OF INCENTIVE, BUT IT'S A GUARANTEE.

IT IS A KIND OF A GUIDELINE.

IT TALKS ABOUT THE MINIMUMS AND MAXIMUMS OF INCENTIVES THAT WILL BE OFFERED.

THE FIRST 12 OR 15 PAGES IS THE CITY'S INCENTIVE GUIDELINES.

IT TALKS ABOUT TAX ABATEMENT, SOME OTHER THINGS THAT THAT ARE OFFERED WITH TIERS AND AND THEN I BELIEVE ON PAGE 13, THE AMARILLO EDDY C'S GUIDELINES TALKS ABOUT AND IT TALKS ABOUT INCENTIVES, JOB CREATION, INCENTIVES, LAND.

WE DO HAVE AN INTEREST REBATE PROGRAM FOR COMPANIES THAT DON'T QUALIFY FOR, YOU KNOW, A JOB INCENTIVE CREATION.

WE'VE USED A COUPLE OF THOSE IN THE PAST.

IT'S BEEN A LONG TIME SINCE WE USED THAT.

WE HAVE NOT USED THAT SINCE I'VE BEEN HERE, BUT IT HAS BEEN USED IN THE PAST AND SO REALLY WELL WRITTEN GUIDELINES.

WE ARE IN THE PROCESS OUR.

GROUP HAS VISITED WITH ANDREW, AND WE KNOW THAT WE NEED TO REVISE THESE AND WE PROBABLY NEED TO BRING UP THE THE NUMBER OF THE MINIMUM NEEDS TO BE BROUGHT UP WHERE IT'S HARDER TO QUALIFY FOR THESE INCENTIVES.

AND NOT THAT WE DON'T WANT TO GIVE INCENTIVES, BUT, YOU KNOW, INFLATION, WE JUST NEED TO INCREASE THE NUMBER PROBABLY AT LEAST IN THE IN THE CAPITAL EXPENDITURE RANGE OF WHAT THEY HAVE TO SPEND TO GET CERTAIN INCENTIVES.

I KNOW THAT WE'RE LOOKING AT THAT AND HOPING TO BRING THAT OUT AS SOON AS WE GET THROUGH THE BUDGET PROCESS.

I WOULD IMAGINE THAT WE WILL BRING THIS BEFORE COUNCIL TO GET THESE TWO DOCUMENTS APPROVED.

ISN'T THAT THE PLAN, ANDREW? OKAY. IN TAB NUMBER SIX, THIS IS AN IMPORTANT PART OF WHAT WHAT WE'VE DONE FOR 32 YEARS.

THIS IS AN AMAZING DOCUMENT.

WHEN I GOT HERE IN 2019, THIS THING WAS STARTED.

WE HAVE UPDATED THAT AND NOW WE KEEP THIS UP TO DATE.

YOU CAN GO THROUGH HERE AND THIS HAS EVERY SINGLE COMPANY THAT WE'VE EVER INCENTIVIZED.

IT'S AN AMAZING READ.

THERE'S 130 COMPANIES THAT WE'VE HELPED OVER THE LAST 32 YEARS.

IT'S AN IT'S AN AMAZING HISTORY OF WHAT WE'VE DONE OVER $3 BILLION IN CAPITAL EXPENDITURE OUT OF THOSE 130 PROJECTS.

SOME OF THE BIG ONES EVERYBODY KNOWS, YOU KNOW, OUR BIGGEST IS BELL HELICOPTER, BUT WE'VE HELPED MWI, ANIMAL HEALTH, GRI, THAT'S OUR BIG TOWER MANUFACTURER.

AND IF YOU EVER WANT THE OPPORTUNITY TO GO THROUGH THAT AND AND WE CAN CERTAINLY SET THAT UP, IT'S AN AMAZING WHAT THEY DO AND BUILDING THOSE TOWERS AND SEEING THOSE, SEEING A SIX INCH FLAT METAL PLATE BEING BENT TO GROUND, THAT'S PRETTY IMPRESSIVE TO WATCH THAT METAL ROLLER.

[02:00:07]

KEITH, THAT WAS THE FIRST ONE AND OUR BUSINESS PARK BACK IN 99, BUT WE'VE HELPED SOME SMALLER ONES PANHANDLE PURE WATER.

THAT'S A PROJECT THAT WE DID A COUPLE OF YEARS AGO.

THEY EMPLOY 35.

THEY TOOK A BUILDING IN THE NORTH HEIGHTS PART OF TOWN THAT HADN'T BEEN USED IN SEVERAL YEARS AND PUT SEVERAL MILLION DOLLARS IN THAT REFURBISHING THAT BUILDING.

AND NOW THEY'RE EMPLOYING 35.

IT'S GOT QUITE A BIT OF TECHNOLOGY IN THAT BUILDING AND THEY'VE MADE THAT BUILDING STAND OUT THERE.

AND THEN ALSO THIS LAST YEAR, OUR TWO OF OUR BIGGEST PROJECTS THAT WE DID IN OUR HISTORY AND DOUBLED REALLY ACTUALLY TRIPLED THE AMOUNT OF CAPITAL EXPENDITURE THAT WE'D EVER DONE. AND THAT WAS PRODUCERS OWN BEEF AND CVMR YOU KNOW, YOU'D LIKE TO KEEP THOSE BILLION DOLLAR PROJECTS A LITTLE SPACED OUT.

WE ACTUALLY BROUGHT THOSE TO COUNCIL IN OCTOBER ON THE EXACT SAME COUNCIL MEETING.

SO INCREDIBLE THAT PEOPLE WANT TO INVEST IN AMARILLO AND WE LOVE THE FACT THAT THEY WANT TO DO THAT.

THIS IS A GREAT PLACE.

I WILL TELL YOU, SINCE I'VE BEEN HERE, I'VE BEEN IN THE PANHANDLE FOR 43 YEARS, BUT I'M HERE IN AMARILLO AND I DON'T WANT TO LIVE ANYWHERE ELSE.

AND I KNOW I GET PAID TO SAY THAT, BUT I MEAN THAT.

AND IF YOU'VE EVER HEARD ME ON A PROSPECT VISIT, YOU KNOW THAT I HAVE A PASSION FOR AMARILLO AND WHAT IT IS, THIS IS A WE WE HAVE AN EASY JOB BECAUSE THIS IS SUCH A GREAT PRODUCT TO SELL HERE IN AMARILLO.

AND OBVIOUSLY, WE KNOW WE HAVE SOME CHALLENGES HERE.

BUT WE WE JUST HAVE THAT GREAT MENTALITY AND, YOU KNOW, OF STEPPING UP TO THE PLATE, THE FIVE OF YOU ALL STEPPING UP TO THE PLATE AND MAKE $10 A MEETING.

I MEAN, YOU'RE NOT DOING IT FOR THE TEN BUCKS.

AND I'M SURE IT'S LESS THAN THAT WITH TAXES.

AND SO IT'S JUST THAT WEST TEXAS MENTALITY AND THAT PANHANDLE SPIRIT.

I KNEW ABOUT THAT. BUT WHEN I GOT HERE, YOU LIVE IT EVERY DAY AND IT'S IMPORTANT.

AND I THINK THAT'S WHY WE'VE BEEN SUCCESSFUL.

HEY, KEVIN. YES, SIR? I MEAN, DO Y'ALL DO Y'ALL KEEP ANY TYPE METRICS ON LIKE, THIS IS GREAT.

AMAZING. SO DO Y'ALL KEEP METRICS ON THE ECONOMIC IMPACT? THAT'S CORRECT. AND I CAN TALK TO THAT IF YOU WANT TO DO THAT.

NOW, I CAN DO THAT. NO, NO, NO, NO, I CAN.

I MEAN, IT'S NOT IN Y'ALL'S IT'S NOT IN Y'ALL'S BOOK.

I HAVE THAT AND I CAN CERTAINLY GET THAT TO YOU.

YOU DON'T? NO, IT'S FINE.

I MEAN, I WAS JUST CURIOUS IF IT WAS KEPT.

SO IT'S THERE IF WE.

YES. AND WE STARTED THAT.

THAT WAS ONE OF OUR BOARD'S DIRECTIONS WHEN I GOT HERE IS TO KEEP AN ECONOMIC IMPACT.

AND SO WE STARTED IT.

WE WERE GOING TO DO KIND OF A TEN YEAR ROLLING, BUT WHEN WE STARTED IT, IT'S NOW EVOLVED INTO 12 YEAR BECAUSE WE JUST DIDN'T ROLL OFF THE BOTTOM, YOU KNOW? AND SO THAT'S SOMETHING I CERTAINLY HAVE AND WE CAN CERTAINLY SHOW THAT TO YOU AT ANY TIME OR I CAN SEND IT TO YOU.

OKAY. BUT IT'S REALLY NEAT.

AND WHAT IT WHAT IT DO, IT DOES IT ALSO KEEPS TRACK OF WHEN THAT IS GOING TO IF IT HAS AN ABATEMENT, IT'LL SHOW WHEN THAT ROLLS OFF THE ABATEMENT, WHAT IT'S ON THE TAX ROLLS FOR.

IT'S A PRETTY EXTENSIVE DOCUMENT.

SO HATS OFF TO STAFF FOR HELPING CREATE THAT.

SO AND I DO HAVE FOUR MEMBERS OF THE TEAM HERE TODAY.

LET ME INTRODUCE THEM. THAT'S A GOOD A GOOD TIE IN.

I HAVE DOUG NELSON.

HE'S OUR SENIOR VICE PRESIDENT, DOES A LOT OF FINANCIAL SERVICES.

AND THEN IT'S A GOOD TIME TO SEGUE INTO AND WE'LL TALK ABOUT IN A LITTLE BIT.

BUT DOUG IS A 0.65 FTE FOR THE AEDC IN HOUSE.

WE BROUGHT IT OVER ABOUT 12 YEARS AGO FROM PANHANDLE REGIONAL PLANNING COMMISSION.

WE HAVE THE 504, THAT'S THE SBA, SMALL BUSINESS ADMINISTRATION 504 LOAN PROGRAM.

AND SO WE HAVE 1.35 EMPLOYEES OUT OF OUR NINE EMPLOYEES THAT ARE TPDC AND WE GET A DIRECT REIMBURSEMENT ON THEIR COST.

BUT WE THOUGHT IT WAS A GREAT WAY TO YOU KNOW, YOU HAVE SOME SMALL BUSINESSES THAT WE MAY NOT BE ABLE TO HELP WITH BECAUSE THEY'RE NOT A PRIMARY JOB.

THIS ALLOWS. ALLOWS THEM TO FOR US TO HELP.

AND SO TPDC, THAT'S THE TEXAS PANHANDLE REGIONAL DEVELOPMENT CORPORATION.

IT'S BEEN AROUND FOR A LONG TIME.

MOST OF THE LARGER CITIES HAVE 501 504 PROGRAMS. LUBBOCK HAS ONE.

THERE'S THIS CAPROCK FINANCE.

ABILENE HAS ONE.

MOST EVERY EVERY CITY THAT'S OVER 100,000 HAS HAS A 504 PROGRAM IN THEIR COMMUNITY.

AND IT'S RUN THROUGH A DIFFERENT VARIOUS DIFFERENT ORGANIZATIONS.

HOW'S THAT? YOU HAVE LIKE A STRATEGIC PLAN OR ANYTHING THAT YOU'LL FOLLOW.

WE DO. WE FOLLOW.

WE ARE IN THE IN THE ONE THAT WAS DONE, I THINK, RIGHT BEFORE I GOT HERE.

IT'S THE IMPACT WATSON.

IT'S THE ELAINE.

AMARILLO. ELAINE. AMARILLO.

YEAH. I'M SORRY. THAT WAS HAPPENING RIGHT AS I GOT IT HAPPENED.

ACTUALLY GOT APPROVED RIGHT BEFORE I GOT HERE.

THE ELAINE AMARILLO. SO IT'S THE, THE COMPREHENSIVE PLAN THAT WE DID BACK IN 2018 AND 2019.

WHAT'S THAT? THE REST OF THE TEAM? YES. OH, YEAH. SORRY.

[02:05:02]

MICHAEL KITTEN.

HE'S OUR VICE PRESIDENT.

HE DOES ALL OF OUR PROJECT DEVELOPMENT.

AND THEN TWO FOLKS THAT WORK FOR MICHAEL DIRECTLY.

PAUL SIMPSON DOES OUR BUSINESS RETENTION AND EXPANSION DEVELOPMENT, AND THEN HOLLY SHANKLE DOES ALL OF OUR NEW PROJECT DEVELOPMENT.

SO THEY'VE BEEN BUSY.

PAUL AND HOLLY HAVE BEEN WITH US TWO YEARS AND THEY HAVE NOT SEEN A SLOW PERIOD, WHICH I HOPE THAT WE DON'T GET TO SEE A SLOW PERIOD.

AND SO THEY HAVE DRUNK FROM A FIRE HOSE FOR THE WHOLE A LITTLE OVER TWO YEARS THAT THEY'VE BEEN HERE AND VERY APPRECIATIVE OF THEM.

NEITHER ONE OF THEM HAD ECONOMIC DEVELOPMENT EXPERIENCE, BUT THEY'VE JUMPED IN AND AND I WOULD PUT THEM UP AGAINST ANYBODY IN THE STATE AT WHAT THEY DO.

MICHAEL DOUG'S BEEN WITH THE AEDC FOR SINCE 2011.

MICHAEL I BROUGHT ON TO STAFF ABOUT A MONTH AFTER I CAME.

I KNEW THAT I WANTED TO ADD HIM.

HE WAS THE DEAN OF TECHNICAL EDUCATION AT AMARILLO COLLEGE, BUT BEFORE THAT HAD BEEN WITH THE HEREFORD EDC AND WANTED TO TO BRING HIS EXPERTISE ON.

AND AS YOU CAN SEE, WE'VE BEEN QUITE SUCCESSFUL MOVING ON AND KIND OF OUR PROJECT HISTORY PART OF THAT PROJECT IS AT THE BACK, AT THE AT THE AT THE LAST PART OF THAT PROJECT IS OUR W-T ENTERPRISE CHALLENGE.

IT TALKS ABOUT ALL OF THE HISTORY.

THIS LAST YEAR WAS OUR 27TH WAS THE 27TH YEAR THAT EDC HAD PARTICIPATED WITH WEST TEXAS A&M TO OFFER THE WEST TEXAS ENTERPRISE CHALLENGE. AND SOME REALLY AWESOME COMPANIES HAVE COME OUT OF THAT ALTERA ENGINEERING THAT THEY HAVE HAD AN AMAZING RUN.

THEY I THINK THEY WON PROBABLY ABOUT 5 OR 6 YEARS AGO, BUT THEY'VE BEEN ON THE INC 5000 LIST AS ONE OF THE FIVE 5000 FASTEST GROWING COMPANIES IN THE UNITED STATES.

THEY'VE BEEN ON IT THREE TIMES.

THAT MEANS THEIR YEAR OVER YEAR GROWTH HAD TO INCREASE ENOUGH IN THOSE THREE YEARS TO BE INCLUDED.

SO WE'VE ALSO HAD SOME HUGE SUCCESSES IN WAYPOINT ADVISORY SERVICES.

IF YOU KNOW BARRY LIBBY LANE, THAT PUT AMARILLO ON THE MAP AND THE LEATHER GOODS, THAT'S A GREAT PROJECT THAT CAME OUT OF THERE.

BUT SOME OF THE SMALLER ONES YOU MAY OR MAY NOT KNOW AND THAT HAVE BEEN TOUCHED.

SKIP'S MIX.

THEY THEY DO BLOODY MARY MIX THAT COMPANY WON A COUPLE OF YEARS AGO AND THEN THERE'S FAITH CRATE THAT'S SORT OF IT'S A MONTHLY SUBSCRIPTION SERVICE THAT'S FAITH BASED AND YOU'RE A MEMBER OF THIS AND YOU GET A I KNOW FOLKS GET CLOTHES IN THE MAIL EVERY MONTH FROM SOME OF THE MAIL ORDERS.

THIS IS A FAITH BASED THING FOR KIDS THAT THEY GET CHRISTIAN ACTIVITIES EVERY MONTH.

AND THIS THAT THAT ENTERPRISE AWARD HAS HELPED HER GET A NATIONAL FOLLOWING.

AND THEN THERE WAS ALSO SKIP SALSA, NO RELATIONSHIP TO SKIP'S MIX, WHICH IS VERY INTERESTING.

THEY WERE AWARDED IN THE SAME YEAR AND NO CONNECTION.

IN FACT, THEY DIDN'T EVEN KNOW EACH OTHER BEFORE THE BEFORE THE PROCESS.

AND SO ANOTHER ONE, SHE'S BEEN ABLE TO GET HER PRODUCT INTO UNITED AND WALMART AND HAS, YOU KNOW, PUT HER SALSA ON THE NAME AND A NAME WITH THAT ON A NATIONAL AND REGIONAL LEVEL.

SO IN TAB NUMBER SEVEN, I JUST WANT TO TALK ABOUT JUST KIND OF THIS LAST YEAR'S IMPACT.

EVERY JANUARY OR FEBRUARY, AEDC STARTED THIS.

THIS NEXT YEAR WILL BE OUR FIFTH STATE OF THE ECONOMY.

I DON'T KNOW IF ANY OF YOU ALL HAVE HAD THE OPPORTUNITY TO ATTEND.

I KNOW MAYOR STANLEY HAS HAD THE OPPORTUNITY TO ATTEND OUR STATE OF THE ECONOMY AND WE JUST KIND OF GO OVER.

IT'S OUR OPPORTUNITY TO TALK ABOUT WHAT AEDC DOES AND KIND OF DO A YEAR END REVIEW AND THEN KIND OF LAUNCH SOME THINGS THAT, YOU KNOW, MAY BE CUTTING EDGE AND I'LL TALK ABOUT THOSE IN A MINUTE.

BUT IN 2022, YOU CAN SEE WE DID TEN PROJECTS.

THIS PAST YEAR, WE ANNOUNCED OVER 3000 NEW JOBS, 2.3 BILLION IN NEW CAPITAL EXPENDITURE ANNOUNCED THIS LAST YEAR. MOST OF THAT IN THAT ONE DAY COUNCIL MEETING IN OCTOBER, $345 MILLION IN NEW ANNUAL PAYROLL ANNOUNCED AND THEN FIVE OVER $500 MILLION IN NEW ANNUAL ECONOMIC ACTIVITY AND IMPACT.

WE USE AN INDEPENDENT COMPANY TO DO OUR IMPACT STUDIES.

WE USE A COMPANY CALLED IMPACT DATA.

THEY'RE OUT OF AUSTIN AND THEY DO THESE STUDIES BECAUSE WE WANT AN INDEPENDENT SOURCE THAT TELLS US WHAT THAT ECONOMIC IMPACT IS GOING TO BE.

AND THEN ALSO IN THAT IS SOME OF THE THINGS THAT WE DO FOR TALENT RECRUITMENT.

WE OBVIOUSLY KNOW THAT WE HAVE A LOW UNEMPLOYMENT AND THAT'S GREAT FOR OUR CITIZENS, BUT SOMETIMES CHALLENGING OR NOT, SOMETIMES IT HAS BEEN CHALLENGING THE LAST THREE YEARS FOR

[02:10:06]

WE KNOW THAT WE NEED TO HELP RECRUIT TALENT.

WE'VE DONE SEVERAL THINGS TO HELP MITIGATE THAT.

WE'VE DONE SOME WORKFORCE GRANT MATCHES WITH THE FIVE SCHOOL DISTRICTS WHERE WE LEVERAGE SOME AEDC FUNDS, I THINK PROBABLY ALMOST CLOSE TO A HALF $1 MILLION OVER THE LAST FOUR YEARS THAT WE GOT A MATCHING GRANT FROM TEXAS WORKFORCE COMMISSION.

SO WE'VE BEEN ABLE TO LEVERAGE ABOUT 450,000 WITH THEIR 450,000.

AND WE WE GAVE THAT TO THE FIVE SCHOOL DISTRICTS THAT TOUCH AMARILLO, THAT'S HIGHLAND PARK BUSHLAND, CANYON RIVER ROAD, AND OF COURSE, AMARILLO ISD.

THAT HAS MADE A TREMENDOUS IMPACT IN A LOT OF THEIR CAREER AND TECHNICAL EDUCATION PROGRAMS. THAT'S WHERE THE MONEY WENT.

ALMOST EVERY ONE OF THOSE EXCEPT FOR AMARILLO HAS USED THAT TO TRAIN ON WELDING.

THAT'S THAT'S YOU KNOW, WE GET THAT A LOT IN WHAT WE DO WITH WELDING.

THAT'S A BIG SKILL. THAT'S WE HAVE A LOT OF WELDERS, BUT WE NEED MORE.

AND SO AND THEN ALSO MACHINING.

AND SO OBVIOUSLY, YOU KNOW, AMARILLO ISD IS A SHINING STAR WITH WHAT THEY DID WITH AMTECH AND IT'S RECEIVED NATIONAL AWARDS THIS PAST YEAR OR THE PAST TWO YEARS THAT IT'S BEEN IN PLAY.

AND WE'RE VERY THANKFUL FOR THE RELATIONSHIPS THAT WE HAVE WITH ALL FIVE OF THOSE SCHOOL DISTRICTS.

AND THEN ALSO WE LAUNCHED IN THIS A COUPLE OF YEARS AGO, OUR TAKE ROOT IN AMARILLO.

AND WHAT THAT IS, IS A SITE REALLY GEARED AT GETTING TALENT FROM OUTSIDE.

WE KNOW WE'VE GOT TO WORK ON OUR HIGH SCHOOL KIDS AND GET THEM A SKILL.

AND NOT EVERYBODY'S GEARED FOR COLLEGE.

WE UNDERSTAND THAT AND WE CERTAINLY DON'T WANT TO CHEAT THOSE KIDS OUT OF GOING TO THAT FOUR YEAR EXPERIENCE.

BUT WE ALSO KNOW THAT THERE'S A LOT OF KIDS THAT DON'T WANT TO GO TO A FOUR YEAR SCHOOL.

THEY CAN GO AND GET A CERTIFICATE AND MAKE AS MUCH AS A COLLEGE GRADUATE IN ONE YEAR WITH A LOT OF THESE JOBS THAT WE'VE CREATED.

AND THEN ALSO THAT TAKE ROOT SITE IS ALSO TO HELP GET SOME OF OUR LATE 20S AND EARLY 30S KIDS THAT HAVE MOVED OFF TO THE METROPLEX BECAUSE THEY WANTED TO LIVE THAT DREAM OF LIVING IN A BIG CITY AND NOW THEY'VE STARTED FAMILIES.

I KNOW THAT ANDREW'S ONE OF THOSE EXAMPLES THAT HAS COME BACK AND MY SON, 25 YEARS ARE GETTING READY TO BE 25 AND NEVER LIVED IN AMARILLO.

HE GRADUATED FROM PLAINVIEW HIGH AND WENT TO ARKANSAS AND SAID HE'S NEVER COME BACK TO TEXAS.

AND HE HE HAPPENED TO BE IN TOWN AND BIG CHAMBER BARBECUE.

AND HE ACTUALLY GOT ASKED TO JUDGE BARBECUE.

THAT'S, YOU KNOW, KIND OF A TREAT IF YOU HOPEFULLY GET THE OPPORTUNITY TO DO THAT, IF YOU LIKE BARBECUE.

BUT ANYWAY, HE WAS SITTING THERE WITH SOMEBODY FROM PANTEX AND THEY YOU KNOW, I'M SELLING AMARILLO EVERY DAY.

AND, YOU KNOW, I'D LOVE TO HAVE HIM HERE.

AND ANYWAY, MEG OWENS FROM PANTEX SOLD BLAINE ON AMARILLO AND HE GOES, YOU KNOW, DAD, I THINK I MIGHT WANT TO LOOK AT AMARILLO.

ANYWAY, MOVED INTO AN APARTMENT ABOUT SIX WEEKS AGO AND HAS BEEN WORKING FOR BEN E.

KEITH FOR ABOUT THREE MONTHS AND LOVES IT, LOVES IT HERE IN AMARILLO.

AND SO THAT'S WHAT WE'VE GOT TO GET MORE OF, GET MORE OF OUR KIDS TO MOVE BACK AND START FAMILIES HERE.

SO. ALSO IN THAT ANNUAL REPORT, THERE IS SOME INFORMATION ON THE WP ENTERPRISE OVER WHAT THEY'VE DONE THE THE LAST 12 YEARS AND WHAT THAT PROGRAM LOOKS LIKE.

THEY HAD 408 FULL TIMES 408 EMPLOYEES IN THIS LAST ROUND OF WINNERS.

THERE WERE FIVE WINNERS, 80 PLUS MILLION IN REVENUE.

BUT WHEN YOU LOOK AT THE ANNUALIZED TOTAL OVER THE LAST 12 YEARS, $401 MILLION IN IN W-2 PAYROLL THAT THEY'VE CREATED OVER THAT 12 YEAR PERIOD, ABOUT A $1.5 BILLION IN TOTAL REVENUE.

AND IN 2021, WE KIND OF WHEN WE WERE ASKED TO PUT THE PROGRAM ON HOLD FOR A COUPLE OF YEARS AND THEN ASKED TO REVIVE THAT PROGRAM, WE WANTED SOME ASSURANCES IN THAT PROGRAM WHEN WE REVIVED THAT TO HAVE SOME TO MAKE THIS PROGRAM MORE IN LINE WITH WHAT OUR REQUIREMENTS WAS, YOU HAD TO HAVE ALL OF THE WINNERS.

THE PAST TWO YEARS HAVE HAD TO BE PRIMARY EMPLOYERS.

THEY'RE NOT. THEY HAVE TO BE THEY HAVE TO HAVE BEEN IN BUSINESS.

THEY HAD TO HAVE HAD AT LEAST, I BELIEVE, $25,000 IN REVENUE THE PREVIOUS YEAR.

AND THEN, LIKE I SAID, THEY HAD TO FIT THE MODEL.

BUT ONE OF THE THINGS THAT WE DID FOR US TO NOT HAVE TO TO BE THE ONLY PERSON THAT'S MONITORING THAT IS WE SET UP RELATIONSHIPS WITH FIVE OF OUR LOCAL BANKS, AND THE FIVE LOCAL BANKS ARE PARTNERING WITH THOSE ENTERPRISE CHALLENGE WINNERS.

THEY'RE THE ONES THAT RELEASES THE FUND AFTER THEY'VE PROVEN THAT THEY'VE SPENT THE MONEY.

AND SO THERE ARE SOME CHECKS AND BALANCES IN THAT PROGRAM THAT WE IMPLEMENTED A COUPLE OF YEARS AGO.

IN FACT, WE'VE GOT TWO BANKS THAT ARE NOT ON THE LIST OF PARTNERS THAT WANT TO THAT WANT TO GET INVOLVED BECAUSE THEY SEE THE BENEFIT OF BEING INVOLVED WITH

[02:15:06]

IN TAB EIGHT JUST A LITTLE BIT.

WE OWN PROPERTIES AT SIX LOCATIONS.

I KNOW THAT'S A SMALLER MAP AND I'M SORRY I DON'T HAVE SLIDES FOR THE CROWD, BUT WE OWN SIX PIECES OF PROPERTY.

ACROSS. IF YOU'LL TURN TO THAT SECOND PAGE, YOU CAN SEE BLUE.

YOU KNOW, THAT'S OUR PREMIER BUSINESS PARK THAT WE STARTED.

BENNY KEITH WAS OUR FIRST TENANT IN 99.

WE'VE GOT ABOUT A LITTLE OVER 100 ACRES LEFT IN THAT PARK.

ONE ONE SPOT THAT WE HAVE.

OUR BIGGEST SPOT THERE IS 75 ACRES.

THAT'S PROBABLY OUR MOST VALUABLE PIECE OF PROPERTY THAT WE HAVE OUT OF THE SIX LOCATIONS, THAT'S 75 ACRES OF RAIL SERVED PROPERTY WHERE THE RAIL SPUR IS ALREADY THERE. THERE WOULD BE NO COST TO GET A RAIL SPUR IN.

AND SO WE'VE BEEN WE'VE HAD A WE HAD A PROJECT THAT WE ANNOUNCED A COUPLE OF YEARS AGO TO GO INTO THAT PROJECT AS SOON AS CITY COUNCIL GAVE THAT APPROVAL ON THAT PROJECT, THE COMPANY SOLD THE NEXT DAY.

AND SO AND THEN THAT THE COMPANY THAT BOUGHT THEM CHOSE NOT TO COME TO AMARILLO.

AND SO THAT PIECE OF PROPERTY IS AVAILABLE.

SO, YOU KNOW, I TALKED TO YOU ABOUT ALL THE SUCCESSES.

SOMETIMES YOU SOMETIMES YOU HAVE THOSE DISAPPOINTMENTS WHERE YOU GO THROUGH THAT PROCESS WITH A PROJECT AND AND, YOU KNOW, THEY DON'T END UP LOCATING IN AMARILLO.

AND THAT WAS DISAPPOINTING.

BUT WE'VE HAD A LOT MORE WINS THAN THOSE DISAPPOINTMENTS.

AND, YOU KNOW, YOU KIND OF CELEBRATE THE WINS AND, YOU KNOW, YOU TALK ABOUT THE LOSSES, BUT YOU CERTAINLY WANT TO CELEBRATE THE WINS.

YOU CAN GO THROUGH.

WE HAVE CENTERPORT. EAST THAT'S A PIECE OF PROPERTY THAT WE BOUGHT FROM DUANE ZORTMAN.

THAT'S 1300 ACRES.

THAT'S IN YELLOW UP THERE.

WE HAVE TWO ANNOUNCED PROJECTS IN THERE.

WE HAVE PROJECT PLANT THAT YOU GUYS APPROVED LAST COUNCIL MEETING THAT WE CAME TO THAT'S GOING TO PROVIDE IT'S GOING TO BE A HALF $1 BILLION PROJECT.

THE NUMBER TWO THERE IN THE YELLOW, THAT'S KVMR. THAT'S THE THAT'S OUR HUGE PROJECT AND WE'VE HAD SOME MOVEMENT ON THAT.

WE ANTICIPATE THEM TO HOPEFULLY START MOVING DIRT REALLY QUICKLY.

THEY'VE CLOSED ON THAT PROPERTY.

AND SO THEIR COUNTDOWN WHEN WE WHEN WE BRING AN INCENTIVE AGREEMENT TO YOU ALL, IT HAS A COUNTDOWN IN THERE OF WHEN THEY HAVE TO START OR WE GET THAT LAND REVERTED BACK TO US.

WE CERTAINLY DON'T WANT TO HAVE A PROJECT ANNOUNCE AND THEN AND THEN CLOSE AND THEN NOT HAVE ANY ASSURANCES THAT WE'RE THAT THEY'RE GOING TO JUST SIT ON THAT PROPERTY.

WE BUILD THOSE ASSURANCES INTO THOSE INCENTIVE AGREEMENTS.

AND SO THAT'S A LITTLE OVER $1.2 BILLION IN ECONOMIC GROWTH THAT WE ANTICIPATE.

THAT'S 1000 JOBS AT AROUND $100,000 A JOB.

SO $100 MILLION PAYROLL EVERY YEAR.

THE NEXT PAGE IS SOME AIRPORT PROPERTY THAT WE OWN.

WE OWN ABOUT 6617 ACRES OUT THERE.

WE'VE GOT 546 OF THAT AVAILABLE.

THE ONLY ANNOUNCED PROJECT THAT WE HAVE IS ALBERS AEROSPACE.

WE OWN 44.8 ACRES ON THE RUNWAY OR I'M SORRY, 48, A LITTLE OVER 48 ACRES ON THE RUNWAY.

WE BELL CAME TO US WHEN WE WERE LOOKING AT THIS PROJECT.

THEY THEY ANTICIPATE SOME GROWTH WITH THE ANNOUNCEMENT OF THE V 280.

AND SO WE GAVE ALBERS 30 ACRES INSTEAD OF 40 THAT THEY WERE ASKING.

AND WE'VE SAVED 18 ACRES.

THAT HAS RUNWAY ACCESS FOR BELL EXPANSION AT A LATER DATE.

AND THEN YOU CAN SEE THE OTHER ROUGHLY 500 ACRES THERE.

THAT'S ACROSS AIRPORT BOULEVARD, SOME OF THAT EAST PULLMAN, SOME OF IT WEST OF PULLMAN.

THAT NEXT SLIDE SHOWS A PIECE OF PROPERTY THAT WE BOUGHT JUST SOON AFTER I CAME IN APRIL OF 2019.

THIS IS 195 ACRE PARK THAT IS IN RANDALL COUNTY.

THIS IS THE ONLY PIECE OF DIRT THAT WE OWN IN RANDALL COUNTY.

I WILL TELL YOU THAT RANDALL COUNTY COMMISSIONERS WERE HAPPY THAT WE HAD NOW HAVE LAND IN RANDALL COUNTY.

IT WAS IT'S ALL PREVIOUSLY BEEN IN POTTER COUNTY.

AND SO ONE OF OUR NEWEST PROJECTS THAT HAS OPENED AND IS IN BUSINESS, I KNOW MAYOR STANLEY WAS AT THEIR GRAND OPENING WAS CACIQUE FOODS.

THEY'RE THE LARGEST MAKER OF LATIN CHEESE.

THEY WERE LOCATED IN SOUTHERN CALIFORNIA, MONROVIA, CALIFORNIA.

AND THEIR GOAL WAS TO LEAVE CALIFORNIA FOR THE REASONS THAT YOU LEAVE CALIFORNIA ARE THE MOST NOTABLE REASONS THAT YOU LEAVE CALIFORNIA.

AND THAT WAS THEIR REASONING.

BUT ALSO TO COME A LITTLE BIT MORE CENTRALLY LOCATED.

AMARILLO YOU KNOW, OUR MONIKER IS THAT WE'RE IN THE MIDDLE OF EVERYWHERE.

YOU KNOW, I WE'RE WE'RE WITHIN 500 MILES OF 17 MILLION PEOPLE.

[02:20:05]

AND SO WE'RE PRIMED TO A PRIME LOCATION FOR MANUFACTURING AND DISTRIBUTION.

AND SO THEY'RE IN SEVEN OUT OF TEN GROCERY STORES WITH THEIR MOVE TO AMARILLO.

THEY WANT TO BE IN TEN OUT OF TEN GROCERY STORES.

THEY'RE ALREADY THE LARGEST MAKER OF LATIN CHEESE AND THEY WANT TO BE EVEN BIGGER.

SO SOLELY OWNED COMPANY BY THE DE CARDENAS FAMILY.

AND SO THEY'VE BEEN A JOY TO WORK WITH.

THE NUMBER TWO SPOT, GOOGLE MAP, HADN'T UPDATED THE PICTURE, BUT THIS IS AUSTIN HOSE'S EXPANSION.

THEY'VE BEEN ON THE CANYON E-WAY, I KNOW, FOR AT LEAST 40 YEARS PROBABLY.

I KNOW COUNCIL MEMBER SCHERLEN HAD AN INTIMATE EXPERIENCE WITH AUSTIN HOSE FOR 38 YEARS.

I THINK IT'S 30. 30 OVER 35 YEARS ISN'T THAT, CORRECT? YEAH, 38.5.

OKAY. SO I DON'T REMEMBER WHEN AUSTIN HOSE WAS FOUNDED.

DO YOU REMEMBER THAT TIME? 1966. SO AND SO THAT'S THAT'S A LONG LEGACY.

THEY BOUGHT ONE OF THEIR LARGE COMPETITORS AND THEY WANT TO BE A NATIONALLY KNOWN BRAND IN THE HYDRAULIC HOSE MANUFACTURER.

THEY HAVE SEVERAL LOCATIONS, BUT AMARILLO IS THEIR HOME AND THEY WANT TO MAKE THAT A DISTRIBUTION HUB.

SO THEY'RE BUILDING A 158,000 150,000 SQUARE FOOT NEW DISTRIBUTION FACILITY ON 20 ACRES THAT AEDC HAD. SO THAT'S ON THE NORTH END, THAT'S ON THE FARMERS SIDE OF OF THE SOUTH GEORGIA BUSINESS PARK.

THAT'S AN INCREDIBLE, YOU KNOW, LEGACY TO BE ABLE TO BUILD THAT BUSINESS AND AND BUILD IT INTO A NATIONAL BRAND.

AND THERE ARE SEVERAL STORIES LIKE THAT HERE IN AMARILLO WHERE PEOPLE HAVE HAVE TURNED A SMALL BUSINESS INTO A LARGE BUSINESS.

AND THEN WE OWN 171 OR 163 ACRES ON THE NORTH LOOP.

THIS IS A PIECE OF LAND THAT'S ON ON NORTHEASTERN STREET AND THE NORTH SIDE OF LOOP 335.

WE WANTED THIS. THIS WAS A VALUE BUY AND HAS OPPORTUNITY.

IT'S GOING TO TAKE SOME MONEY TO DEVELOP THIS LAND JUST BECAUSE I THINK SEWER IS ACROSS THE STREET AND THEN WATER IS ABOUT TWO MILES AWAY OR IT'S OPPOSITE.

I GET THOSE MIXED UP.

BUT ONE OF THEM IS REAL CLOSE AND THE OTHER ONE IS GOING TO TAKE SOME A WHILE TO GET THERE.

IF WE HAVE THE RIGHT PRODUCT AND IT'S WORTH THAT MONEY TO SPEND THAT INFRASTRUCTURE MONEY TO GET THAT TO THAT PROPERTY.

THAT NEXT PROJECT.

WE BOUGHT THAT IN 2020.

THAT IS POINT WEST, WHAT WE CALL OUR POINT WEST DEVELOPMENT.

IT'S 37 ACRES IN THE POINT WEST DEVELOPMENT.

WE'RE JUST WEST OF THE TEXAS TECH MEDICAL COMPLEX.

WE BOUGHT THIS PIECE TO KIND OF CAPITALIZE ON THE FACT THAT WE BOUGHT THE TEXAS TECH VET SCHOOL.

THAT'S ONE OF AEDC'S FLAGSHIP PROJECTS.

WE ANNOUNCED THAT PROJECT IN 20 WELL, IT STARTED IN 2017 AND THEN KIND OF GOT THE DEAL.

AND THEN WE GOT WENT THROUGH THE LEGISLATURE AND WHAT A WIN FOR AMARILLO TO GET THAT AND WEST TEXAS TO GET THAT VET SCHOOL STARTED.

THERE WAS OBVIOUSLY A LOT OF OPPOSITION FROM FOLKS FROM ANOTHER STATE UNIVERSITY THAT DIDN'T WANT TO VET ANOTHER VET SCHOOL.

AND WHAT A BIG WIN.

AND THAT'S HATS OFF TO PREVIOUS COUNCILS AND AND ALSO TO OUR STATE LEGISLATURES, LEGISLATORS IN THIS AREA, AND NOT JUST THE ONES IN AMARILLO, BUT ONES I KNOW SENATOR CHARLES PERRY AND LUBBOCK HAD A LOT OF INFLUENCE.

AND SO HATS OFF TO THOSE FOLKS FOR GETTING THAT.

AND THAT WAS A HUGE WIN FOR WEST TEXAS AND IT'S GOING TO CONTINUE TO BE.

BUT WE WANTED TO BUY SOME LAND OUT THERE TO CAPITALIZE ON THE PROXIMITY OF THAT LAND TO THE VET SCHOOL.

THAT LAST PAGE IN THERE KIND OF TALKS ABOUT OUR ACREAGE THAT WE HAVE.

IT'S KIND OF BROKEN DOWN INTO THE SECTIONS THAT BRAD HAS.

THAT'S WHAT THE PROPERTY ID NUMBER ALSO IN THOSE SIX LOCATIONS OF PROPERTY, WE ALSO OWN THREE BUILDINGS.

THOSE THREE BUILDINGS, WE OWN A SMALL OFFICE BUILDING AT THE CORNER OF TILT ROTOR AND AMARILLO BOULEVARD.

I MEAN, NOT AMARILLO, AIRPORT BOULEVARD, EXCUSE ME.

WE COLLECT RENT ON THAT.

I THINK THAT'S ABOUT $3,500 A MONTH THAT WE COLLECT FROM BELLE.

THAT DOES NOT HAVE ANY STIPULATION IN THERE THAT BELLE WILL GET THAT BUILDING AT THE END.

IT'S A CONTINUOUS RENT.

AND THEN ALSO MWI.

WE OWN THE BUILDING WHERE MWI IS, AND THAT IS RIGHT WHEN YOU GO INTO CENTREPORT OFF OF THE LOOP, THAT'S THE FIRST BUILDING THAT YOU SEE RIGHT ACROSS FROM COCA-COLA. AND SO WE COLLECT ABOUT $45,000 A MONTH IN RENT FROM MWI.

AND THEN ALSO, AS WE TALK ABOUT IN BUDGET, ONE OF THE THINGS THAT MWI DID, WE ACTUALLY PAY THEIR LIABILITY INSURANCE ON THAT BUILDING AND THEN THEY PASS THAT

[02:25:03]

SO THAT'S A PASS THROUGH THERE.

THE WE'RE THE, YOU KNOW, A THIRD PARTY INSURED.

WE PASS THAT MONEY THROUGH SO THAT PREMIUM IS IS SOME REASON WHY SOME OF OUR INSURANCE EXPENSE HAS GONE UP.

BUT THAT'S PASSED THROUGH MONEY.

WE GET THAT AS REVENUE.

AND THEN ALSO WE CURRENTLY OWN THE PACIFIC CHEESE BUILDING IN THEIR AGREEMENT.

THEY'VE GOT A COUPLE MORE YEARS TO FULFILL THEIR AGREEMENT AND THEN THEY'LL OWN THAT BUILDING, THAT OWNERSHIP WILL TRANSFER FROM US TO THEM.

ANY QUESTIONS ON ON OUR PROPERTIES AND BUILDINGS.

IN TAB NUMBER NINE.

WE'RE KIND OF DOWN TO THE NUMBER PART NOW.

SO I TALKED ABOUT THE TPRDC FUNCTION AS PART OF OUR AUDIT.

TPRDC DOES DO AN INDEPENDENT AUDIT ON THEIR OWN.

THEY HAVE A SEPARATE AUDITOR THAT THEN THAT AUDITS THE TPRDC BOOKS AND THEY DO A DIRECT REIMBURSEMENT TO AEDC FOR THEIR EXPENSES.

THAT'S ABOUT 240,000 THIS YEAR OR THIS.

THIS ON THE AUDIT WAS ABOUT $240,000 THAT THEY DIRECT REIMBURSED US.

THAT'S PART OF OUR BUDGET, BUT WE SEE THAT AS REVENUE.

AND SO I WANT TO DIRECT SOME OF YOUR ATTENTION IN THIS AUDIT.

IF YOU'LL GO TO PAGE 18 OF THE AUDIT.

THIS KIND OF TALKS ABOUT OUR CURRENT 22 AND 21 COMPARABLE YEARS.

THE MAIN FOCUS, THOUGH, THAT I WANT TO FOCUS ON IS ON PAGE 22 AND 23.

THAT'S OUR REVENUES AND EXPENSES.

THAT'S OUR REVENUES THIS PAST YEAR WERE UP $2 MILLION OVER LAST YEAR.

OBVIOUSLY WE'RE SALES TAX FUNDED, BUT WE DO HAVE SOME REVENUES THAT COME IN THE FORM OF RENT INTEREST INCOME.

OBVIOUSLY, THAT'S GOING TO KEEP THAT'S GOING TO BE A GOOD AMOUNT OF OF MONEY THE NEXT COUPLE OF YEARS.

I WOULD ANTICIPATE THAT WE'LL HAVE A DECENT AMOUNT OF INTEREST INCOME THAT WILL COME UP.

OUR OPERATING EXPENSES FOR 22 WERE UP ABOUT $200,000.

ONE OF THE MAIN REASONS THAT WAS IN DEPRECIATION AND AMORTIZATION AND I'M GOING TO HAND THIS OFF TO LAURA TO EXPLAIN.

WE HAD A GOVERNMENTAL ACCOUNTING STANDARDS.

THEY CHANGED THE RULE THIS PAST YEAR ON HOW YOU FIGURE AN OFFICE LEASE AND HOW YOU FIGURE A FUTURE OFFICE LEASE.

AND SO IT DOUBLE EXPENSED US IN ONE YEAR AND THAT'S JUST PART OF THE GATSBY..

YEAH. SO LAURA, I'LL LET YOU EXPLAIN.

I'LL JUST VERY HIGH LEVEL ON THIS.

SO YES, IT WAS A CHANGE IN OUR GOVERNMENTAL ACCOUNTING STANDARDS RELATED TO FINANCIAL STATEMENTS.

AND WHAT IT REQUIRES IS IF, IF IN THEIR CASE, THEY HAVE A LONG TERM LEASE SIGNED FOR THEIR OFFICE SPACE.

AND SO BASICALLY YOU HAVE TO BOOK IT AND THEN YOU HAVE TO AMORTIZE IT OVER THE LEASE.

AND SO YOU'RE SEEING SOME AMORTIZATION NOW ON THE EXPENSE SIDE OF THIS FINANCIAL STATEMENT THAT YOU HADN'T HISTORICALLY.

AND THEN WE ALSO HAVE TO BOOK SOME INTEREST EXPENSE.

AND IT'S BASICALLY A TIME VALUE OF MONEY CALCULATION RELATED TO THAT LEASE.

SO ONE OF THE MANY THINGS THAT BRINGS JOB SECURITY FOR MATT AND I, AS THOSE STANDARDS CAN CONTINUE TO CHANGE, THE CITY ALSO EXPERIENCED THAT AS WELL WITH ANY LEASE THAT WE WERE DOING.

AND JUST GOING FORWARD, AND I DON'T KNOW IF IT WILL HIT AEDC OR NOT, BUT ALSO IF YOU OWN SOFTWARE AS LIKE A SUBSCRIPTION STARTING THIS NEXT YEAR, IT'S GOING TO DO THE SAME THING.

SO YOU'RE GOING TO HAVE IT ON THERE AND YOU'RE GOING TO HAVE TO BASICALLY AS AN ASSET THAT'S AMORTIZED OVER TIME AND TAKING SOME INTEREST AS WELL.

SO. NOT REALLY A CASH EXPENDITURE AT ALL IN ANY SHAPE OR FORM.

IT WAS JUST A CHANGE IN HOW WE HAD TO BOOK THOSE.

THANK YOU, LAURA, BUT IF YOU CAN, YOU CAN SEE IN OUR OPERATING FUND AND I DO WANT TO EXPLAIN THAT OUT OF OUR REVENUE, OUT OF THE SALES TAX REVENUE, WE DO SPLIT THE SALES TAX INTO TWO DIFFERENT FUNDS.

WE HAVE AN OPERATING FUND AND OUR PROJECT FUND, 12% OF OUR OPERATING 12% OF THE SALES TAX MONEY GOES INTO THE OPERATING FUND AND 88% GOES INTO THE PROJECT FUND. THIS PAST YEAR, THOUGH, WE OPERATED THE ON THE OPERATIONAL SIDE, WE WERE AT LESS THAN 10%.

THAT'S WHAT OUR OPERATING COST, AND SO THAT'S GREAT FOR AN ORGANIZATION TO BE ABLE TO OPERATE AT LESS THAN 10% IN OPERATING COST.

PROJECT EXPENSE WENT UP ABOUT $1 MILLION, 22 VERSUS 21.

YOU KNOW THAT HAS TO DO WITH INCREASED ACTIVITY AND INCENTIVES THAT WE HAVE GIVEN TO COMPANIES.

SO THAT'S WHY THE EXTRA MONEY AND INCENTIVES.

THE GREAT THING ABOUT THIS ORGANIZATION, WE HAD A NET POSITION GAIN FROM 21 TO 22.

[02:30:02]

WE WERE ABLE TO ADD $11 MILLION INTO THE AEDC FUND BALANCE FROM THE PREVIOUS YEAR.

IN 2021, WE ADDED $9.5 MILLION.

OVER THE LAST TWO YEARS, WE'VE BEEN ABLE TO ADD $20 MILLION INTO OUR FUND BALANCE TO HELP WITH FUTURE PROJECTS.

ON PAGE 80 AND 84.

I THINK THAT THOSE ARE THE LAST FEW PAGES.

I KNOW THAT COUNCIL MEMBER SIMPSON HAD ASKED FOR A HISTORICAL SOME HISTORY OF THE ORGANIZATION.

SO THE AUDIT DOES A PRETTY GOOD JOB OF PROVIDING THE LAST FIVE YEARS ON A HISTORICAL FOCUS.

SO ON PAGE 82, YOU CAN SEE OVER THE LAST FIVE YEARS THAT SALES TAX HAS GONE UP 29%.

THAT'S ON A YEAR OVER YEAR BASIS FROM FROM 2018 TO 2022.

THAT'S AN INCREDIBLE INCREASE I KNOW THIS YEAR WE'VE BEEN A LITTLE THE NUMBER HAS NOT INCREASED THAT MUCH, AND I KNOW OBVIOUSLY THIS MONTH WE'VE HAD A LITTLE BLIP ON THE YOU KNOW, ON THE SCREEN.

I THINK IT IS A BLIP.

MY GUESS IS THAT YOU'LL FIND OUT THERE'S SOME KIND OF BIG AUDIT WITH ONE OF OUR BIG CHAIN STORES THAT CAUSED THAT BIG DECREASE, BUT HOPEFULLY THAT WILL FLATTEN OUT, AND WE'LL GET BACK TO WHERE WE'RE GROWING AS AN ECONOMY, BUT ANYWAY, SALES TAX UP, COLLECTION UP 29% OVER THAT PERIOD, AND THEN ON PAGE 84, THE REVENUES AND EXPENSES ARE UP HISTORICALLY BY JUST A SMALL MARGIN OVER THAT SAME FIVE YEAR PERIOD. SO OUR OPERATING COSTS HAVE NOT INCREASED AT THAT 29% MARGIN.

THEY'VE ONLY INCREASED AT A SMALL MARGIN, AND THAT'S BECAUSE WE WANT TO BE GOOD STEWARDS.

I THINK THE BOARD HAS DONE A GREAT JOB BEFORE I GOT HERE, AND OBVIOUSLY AS THE AS THE AS THE LEADER OF THE ORGANIZATION, I THINK IT'S IMPORTANT TO BE GOOD STEWARDS OF THE MONEY, OBVIOUSLY ON AN OPERATING COST, AND SO CERTAINLY WOULD ANSWER ANY QUESTIONS ABOUT LAST YEAR'S FINANCES BEFORE WE JUMP INTO THE BUDGET PRESENTATION.

WHAT IS SO I'M LOOKING AT TOTAL EXPENSES FOR 19 AND 20.

THEY SIGNIFICANTLY JUMP UP FROM WHERE WE WERE IN 18 AND THEY GO BACK TO NORMAL.

WHAT WAS HAPPENING IN I CAN EXPLAIN THAT.

THAT IS SO WE DID WE REDID THE BELL CONTRACT TO BOOK THAT A DIFFERENT WAY.

IT'S THE SAME.

WE'VE GAINED THAT BACK.

WE I DON'T KNOW IF YOU WANT TO EXPLAIN THAT, LAURA, I CAN GET DOUG TO COME UP AND EXPLAIN THE BELL.

THAT WAS HIS BIG PROJECT.

YEAH. SO I THINK IT WOULD BE BETTER.

LET'S LET DOUG GIVE THE BECAUSE THAT IS A SIGNIFICANT AMOUNT, AND THEN IT LOWERED BACK DOWN.

IT WAS A ONE TIME HIT TO THE FINANCIALS.

SO I CAN GIVE YOU BASICALLY THE BELL CONTRACT.

WE HAD DONE SEVEN PHASES OF CONSTRUCTION WITH THEM, AND OVER TIME WHEN THAT.

PROJECT WAS ORIGINALLY DONE.

THEY DID NOT CONTEMPLATE THE EXIT STRATEGY ASSOCIATED WITH THE PROJECT, AND SO THE STRUCTURE OF THE PROJECT WAS THAT THEY WERE GOING TO ACHIEVE OWNERSHIP OF IT AFTER A 20 YEAR PERFORMANCE PERIOD.

WELL, BECAUSE OF THE WAY THE ORIGINAL DEAL WAS DONE, WE HAD TO COME BACK AND RESTRUCTURE IT.

WE DID OWN THE PROPERTY AND THE BUILDINGS, AND WHEN WE RESTRUCTURED IT, WE MADE IT TO WHERE WE WERE HOLDING A DEED OF TRUST AND A NOTE.

SO WE TURNED IT IN TO THE FACT THAT WE'RE A LENDER INSTEAD OF THE OWNER, SO THAT AT THE END OF EACH 20 YEAR PHASE ON THESE SEVEN PHASES, THEY WOULD OWN THE PROPERTY AND THE BUILDING AND GO ABOUT THEIR MERRY WAY.

UNFORTUNATELY, ORIGINALLY WHEN IT WAS STRUCTURED, THEY DIDN'T LOOK AT THE EXIT OF IT, SO WE HAD TO RESTRUCTURE THAT.

DOES THAT MAKE SENSE TO YOU? SO WE BASICALLY HAD TO PURCHASE THE PROPERTY.

I MEAN, SO WELL.

SO ORIGINALLY WE DID PURCHASE THAT PROPERTY, AND THEN WE BUILT SEVEN PHASES OF CONSTRUCTION ON THAT PROPERTY, BUT THAT

[02:35:07]

SO WE HAD TO RESTRUCTURE IT SO THAT WE COULD DO WHAT THE AGREEMENT CONTEMPLATED AND WHICH WAS THEM OWNING IT AT THE END OF EACH PHASES, 20 YEAR PERFORMANCE, PERIOD.

OKAY. ALL RIGHT. THANKS.

SO, DOUG, THAT WAS BASICALLY A BALANCE SHEET TRANSACTION WHERE WE HAD AN ASSET CREATED AN EXPENSE, WHICH IS WHAT CAUSED THE DROP IN INCREASED OUR EXPENSES.

THAT'S CORRECT, AND OUR WE WENT FROM A OWNER OF PROPERTY TO A FINANCIER OF THE PROPERTY.

SO AND IT SHOWS A BASICALLY ON THE BALANCE SHEET A RECEIVABLE, AND THAT'S HOW THE BALANCE SHEET WORKED OUT, BUT TO MAKE THAT RECEIVABLE THERE, WE HAD TO SHOW AN EXPENSE AND A REDUCTION OF AN ASSET.

THAT'S EXACTLY RIGHT.

SO OUR BALANCE SHEET CARRIED ALL THAT PROPERTY AND ALL THOSE BUILDINGS AS AN ASSET ON OUR BALANCE SHEET, AND WHAT WE DID WAS WE CONVERTED THAT TO A RECEIVABLE BASICALLY, AND SO IT DID IMPACT OUR BALANCE SHEET, BUT THERE WAS DIDN'T IMPACT CASH.

YEAH, IT DID NOT IMPACT ANY CASH.

OKAY. SO WE CHANGED SOMETHING.

YOU JUST HAD TO RECOGNIZE THAT IN THE FINANCIALS.

THAT'S CORRECT, AND IT JUST SWITCHED IT BASICALLY FROM AN ASSET TO A RECEIVABLE.

THANKS, LLOYD.

I GET TOO DEEP IN THE MINUTIA.

ANYTHING ELSE? READY TO MOVE ON TO [INAUDIBLE].

I DO HAVE ONE OTHER QUESTION, BUT MAYBE.

OH, I'M SORRY. GO AHEAD.

ANYBODY ELSE HAVE A QUESTION? GO AHEAD. LOOKING BACK, HOW MUCH? HOW MUCH DO WE HAVE SET ASIDE? OUR CAPABILITY ON THE BIG PROJECT.

LET'S SAY, FOR EXAMPLE, WE HAD SOMETHING THAT CAME IN AND SAID, WOW, THIS IS GREAT.

YOU KNOW IT'S GOING TO GOING TO BE A BIG INVESTMENT, BUT BUT WE THINK IT'S GOING TO REALLY WORK.

WHERE DO WE STAND ON THE FLEXIBILITY IF WE HAD SOMETHING REALLY GREAT, REQUIRED A LARGE INVESTMENT, BUT WE REALLY FELT LIKE THAT WE WERE GOING TO GET SOMETHING MAJOR OUT OF IT.

YEAH, ABSOLUTELY. YOU WANT TO BE ABLE TO, AS AN ORGANIZATION THAT'S BEEN THIS SUCCESSFUL, YOU WANT TO STILL HAVE ROOM FOR THAT BIG PROJECT THAT WE HAVE, AND SO CURRENTLY WE HAVE CLOSE TO $60 MILLION IN THE BANK IN CASH THAT'S EARNING INTEREST AND SO LIKE I SAID, WITH PAYING ALL OUR DEBT SERVICE, WE PAID OUR INCENTIVES LAST YEAR, WE ADDED $11 MILLION TO THE BOTTOM LINE, AND SO WITH THAT INCREASE AND WE'VE GOT CASH FLOW PROJECTIONS OVER THE NEXT FIVE YEARS, THAT SHOWS US STILL PUTTING SOME MONEY TO THE BOTTOM LINE OVER THAT.

WE KNOW WE'VE GOT SOME BIG PROJECTS THAT WE'RE GOING TO HAVE TO PAY ON, BUT BUT YOU KNOW, WITH I THINK WE'RE PROJECTING SALES TAX TO STAY FLAT IN OUR IN THAT IN THAT PROJECTION IT'S JUST A PROJECTION BUT STILL ADDING MONEY TO THAT BOTTOM LINE AND PAYING WE'LL HAVE WE'LL HAVE SOME DEBT SERVICE ROLL OFF OVER THE NEXT EIGHT YEARS. WE'LL HAVE SOME DEBT SERVICE ROLL OFF, AND SO THAT WILL GIVE US YOU KNOW, THAT FREES UP ABOUT 4 OR $5 MILLION TO A YEAR, AND SO WE CERTAINLY WANT TO BE READY FOR THAT.

IF SOME MAJOR BIG PROJECT COMES.

WE CERTAINLY WANT TO BE READY FOR THAT, AND WE ARE; WE'RE POSITIONED WELL FOR THAT.

DOES THAT ANSWER YOUR QUESTION? CAN WE CAN WE DRILL DOWN ON THAT BEFORE WE GET INTO BUDGET? YES, SIR. IF I'M READING THROUGH IT CORRECTLY, 171 MILLION.

I DO HAVE LET'S SEE HERE I'VE GOT THIS IS FROM MAY FINANCIALS.

SO WE GET WE GET OUR FINANCIALS THAT WE PRESENT TO THE BOARD AS OF MAY.

THIS IS MAY 31ST.

THIS IS NOT IN YOUR PACKET, AND I'M SORRY, I CAN GET THIS TO YOU.

AS OF MAY 31ST, OUR FUTURE COMMITMENTS ARE $160 MILLION, AND SO WE HAVE CLOSE TO 60 MILLION.

SO RIGHT NOW YOU HAVE $100 MILLION THAT YOU.

THAT YOU'VE GOT TO KEEP COLLECTING YOUR SAY THAT AGAIN JUST BECAUSE I THINK WE'RE WE'RE LOOKING AT BORROWING POTENTIAL.

THAT'S CORRECT. OR FUNDING POTENTIAL.

YOU JUST GAVE US CURRENT COMMITMENTS WITH 100 MILLION.

SO 160 MILLION IS THE FUTURE COMMITMENT NUMBER, BUT WE HAVE 60 MILLION CASH IN THE BANK.

OKAY. SO YOU HAVE 160, NOT 171.

NOW IT'S ONE 159.387.

THAT'S AS OF MAY, AND I WOULD ANTICIPATE THAT NUMBER TO KEEP GOING DOWN EVERY MONTH.

OKAY. DO YOU HAVE ANY CURRENT DEBT?

[02:40:03]

I CAN GIVE YOU THAT, AND I WAS GOING TO SAY, IF YOU IF YOU TURN IN THAT TAB, NINE TO PAGE 80, IT SHOWS YOU THERE ARE TWO OUTSTANDING DEBT ISSUANCES AND THE PRINCIPAL AND INTEREST PAYMENTS REQUIRED THROUGH 2030, ONE OF THEM ROLLS OFF, IT LOOKS LIKE, IN 2027 AND COMBINED BETWEEN THE TWO. IT'S ABOUT 35.5 MILLION.

SO IT OUTLINES IT PERFECTLY THERE FOR YOU TO SEE AS THOSE PAYMENTS ARE MADE, AND BOTH OF THOSE ARE ASSOCIATED WITH BELL HELICOPTER.

COUNCILMAN SIMPSON. DOES THAT ANSWER YOUR QUESTION? YES. YEAH. OKAY.

ANYBODY ELSE GOT ANY QUESTIONS BEFORE WE MOVE ON? ALL GOOD. OKAY, SIR.

SO IN THIS 2024 OR 2023-2024 BUDGET, YOU'VE GOT SOME COMPARISON YEARS.

THIS IS OUR BUDGET THAT WAS APPROVED IN LAST YEAR OR 22 AND 23.

SIDE BY SIDE WITH WHAT WE'RE PROPOSING FOR 2023 AND 24.

IT'S AN OVERALL DECREASE OF AROUND $65,000 OR 1.5%, AND I DO HAVE COPIES OF THIS BUDGET FOR THE PUBLIC, IF SOMEBODY WOULD LIKE THAT. I KNEW MR. SCHENCK WOULD FOR SURE LIKE A COPY OF THAT.

SO I BROUGHT HIM ITS COLOR, TOO.

CAN I ASK YOU REAL QUICK? IS THIS THE SAME ONE THAT YOU ALL PRESENTED? THIS IS THIS HAS NOT CHANGED.

THIS IS THE THIS IS THE EXACT SAME BUDGET AS THAT WE WERE GOING TO PRESENT LAST WEEK.

SO IT HADN'T CHANGED. I JUST WANTED TO BRING COPIES, AND SO YOU SEE AN OVERALL DECREASE OF $65,000.

OUR OPERATING EXPENSES ARE BUDGETED TO INCREASE JUST AROUND $22,000 FOR FOR THIS NEXT THEN FROM 23 OUR PAYROLL EXPENSES, WE'RE PROJECTING THOSE PAYROLL EXPENSES TO STAY THE SAME, AND THE REASON IS WE BUDGETED A 4% COST OF LIVING ADJUSTMENT IN THERE, BUT WE DID COMBINE I DID COMBINE A POSITION THIS PAST YEAR.

WE HAD A MARKETING PERSON AND A WORKFORCE PERSON LEAVE IN THE LAST 18 MONTHS AND THOUGHT ABOUT HIRING BACK TWO PEOPLE, BUT I WENT TO THE BOARD AND REALLY KIND OF WANTED TO COMBINE THAT POSITION.

IF I FOUND THAT RIGHT PERSON THAT COULD DO BOTH THOSE JOBS AND WE FOUND THAT PERSON, KAYLA HARPER CAME AND JOINED OUR TEAM ABOUT FIVE MONTHS AGO. SHE HAS A STRONG MARKETING BACKGROUND AND WE ARE TEACHING HER THE WORKFORCE SIDE.

SHE'S DONE SOME A LOT OF EXTENSIVE MEETINGS WITH OUR PARTNER OVER AT WORKFORCE COMMISSION OR OVER AT WORKFORCE SOLUTIONS OF THE PANHANDLE, TRENT MORRIS AND HIS STAFF, [INAUDIBLE] FLORES.

THEY HAVE BEEN INCREDIBLE TO WORK WITH HER.

WE'RE GOING TO SEND HER ON SOME TO GET SOME WORKFORCE TRAINING BECAUSE WE KNOW THAT'S IMPORTANT, BUT I WANTED TO COMBINE THAT POSITION BECAUSE WE DO WANT TO BE GOOD STEWARDS OF THE MONEY, AND SO WITH THAT BEING ABLE TO COMBINE THAT POSITION, WE WERE ABLE TO STAY FLAT IN THE BUDGET THIS YEAR EVEN AND EVEN PROVIDING A 4% RAISE FOR EMPLOYEES. OBVIOUSLY OUR INSURANCE IS OUR BIGGEST EXPENSE THAT WE HAVE IN OUR OPERATING BIGGEST INCREASE.

A LOT OF THAT HAD TO DO WITH OUR LIABILITY CYBER INSURANCE, OUR DIRECTORS AND OPERATING WE HAVE TO HAVE D&O INSURANCE.

OBVIOUSLY, THOSE THINGS HAVE GONE UP, BUT ONE OF THOSE WAS THE MWI INSURANCE.

THAT'S A PASS THROUGH, BUT WE RECEIVED THAT AS REVENUE.

OUR MARKETING BUDGET STAYED THE SAME.

IT'S $800,000 OBVIOUSLY THAT WAS ONE OF THE THINGS THAT I TALKED ABOUT EARLY ON IS THE STATUTE SAYS THAT YOU SPELLS OUT THAT YOU CAN SPEND UP TO 10%.

THAT WOULD BE 2.5 MILLION.

I THINK THAT WOULD BE A WASTE OF MONEY TO SPEND 2.5 MILLION.

WE'VE BEEN VERY SUCCESSFUL AT THIS 750 OR $800,000 RANGE, SAME AS LAST YEAR.

AND THAT DOES INCLUDE OUR TRAVEL.

WHEN WE TRAVEL FOR MARKETING PURPOSES AND WHEN WE'RE GONE TO SITE SELECTOR SHOWS, THAT DOES INCLUDE TRAVEL, WHICH YOU DON'T HAVE TO INCLUDE IN THAT 10%, BUT WE INCLUDE IT IN THE 800,000, AND THIS YEAR WE'RE GOING TO BE UNDER THAT.

WE HAVE NOT SPENT THE WHOLE $800,000 ON MARKETING.

WE JUST HAVE THAT THERE JUST IN CASE.

THERE'S SOME THINGS THAT WE WANT TO DO.

WE'RE GOING THROUGH A LOGO REDESIGN.

WE FELT FOR THE PAST FEW YEARS THAT THE LOGO KIND OF LIMITS US AND A LOT OF PEOPLE DON'T KNOW WHAT THE LOGO IS.

IT'S A PINWHEEL, BUT I MEAN, THAT'S WHAT I'VE CALLED IT SINCE I'VE SEEN IT SIX YEARS AGO BEFORE I GOT TO AMARILLO BECAUSE I KNEW SEE THE LOGOS AND REALLY THAT LOGO KIND OF OUTLINES OUR WIND TURBINE KIND OF HISTORY, AND THEN IT ALSO INSIDE THAT WIND TURBINE BLADE IS THE BELL

[02:45:06]

SO WE'RE GOING WITH SOMETHING A LITTLE BIT MORE REDESIGN.

WE'VE GOT A LOCAL COMPANY WORKING ON THAT FOR US, AND SO THAT'S PART OF THAT MARKETING EXPENSE IN OUR PROJECT FUND THAT'S ON OUR OPERATING EXPENSE, ON OUR PROJECT FUND EXPENSES, WE'RE BUDGETING THOSE TO DECREASE BY 75,000 OUR PROJECT FUND EXPENSES, THOSE INCLUDE PROJECT IMPROVEMENTS.

THAT'S SCHEDULED TO BE 500,000 THIS YEAR, AND WE BUILT THAT IN.

THAT'S BEEN BUILT INTO OUR BUDGETS FOR SEVERAL YEARS.

OBVIOUSLY WE USE THAT IS IF WE WANT TO DO A WATER LINE TO LET'S SAY THAT 171 ACRES, WE DON'T HAVE A PROSPECT IN THERE, BUT WE WANT TO GO AHEAD AND PUT SOME INFRASTRUCTURE IN.

IT GAVE US THE ABILITY TO SPEND UP TO 500 OR UP TO WHATEVER THE BUDGET WAS ON THOSE IMPROVEMENTS WITHOUT HAVING TO COME TO OUR BOARD OR TO COUNCIL FOR A LINE ITEM TO PRESENT IN A IN A MEETING AND ASK FOR $237,000 TO RUN A WATER LINE UNDER LUKE 335. IT ALLOWED US THE ABILITY TO USE THOSE FOR IMPROVEMENTS ON LAND THAT WE OWN, AND THEN WE ALSO HAVE SOME PARTNER AGREEMENTS IN THERE.

WE HAVE THE CHAMBER.

WE'VE CONTRIBUTED HISTORICALLY TO THE CHAMBER OVER THE SEVERAL YEARS.

I MEAN, AS FAR BACK AS I KNOW, I DON'T KNOW THE HISTORY OF THAT.

I JUST KNOW THAT WE'VE HISTORICALLY BEEN A PARTNER TO THE CHAMBER PORTS, TO PLAINS.

WE I WILL TELL YOU THAT WE ARE THE ONLY CITY IN THE PORTS TO PLAINS REGION WHERE THE AEDC PAYS THE PORTS TO PLAINS DUES.

IT'S TYPICALLY PAID OUT OF THE CITY BUDGET.

WE TOOK THAT OVER THE AS MUCH AS I CAN TELL, I THINK WE TOOK THAT OVER ABOUT MAYBE SAY 12 OR 13 YEARS AGO.

WE TOOK THAT OVER FROM THE CITY AND HAVE PAID THOSE PORTION OF PLAINS DUES THIS PAST YEAR.

PORTS TO PLAINS HAD A HAD SOME SIGNIFICANT WINS.

THEY GOT THE I 27 DESIGNATION FROM ALL THE WAY FROM LAREDO ALL THE WAY UP TO CLAYTON, NEW MEXICO.

SEVERAL MONEY SEVERAL MONIES THAT WERE CONTRIBUTED ARE GOING TO BE CONTRIBUTED TO THROUGH TXDOT TO THE AMARILLO AREA TO HELP WITH THE LOOP CONSTRUCTION, AND YOU KNOW, OBVIOUSLY THE BIG CROSSOVER AT HOLLYWOOD ROAD AND LOOP 335 AND SOME OTHER TXDOT PROJECTS THAT ARE COMING.

PORTS TO PLAINS HELPED NEGOTIATE THAT THROUGH THE LEGISLATURE, THROUGH THEIR LOBBYING EFFORTS AND THEN ALSO SOME VARIOUS STATE ASSOCIATIONS THAT WERE PART OF AND THEN OBVIOUSLY THE ENTERPRISE CHALLENGE IS IN THERE AT 580,000.

THAT'S WHAT WE FUNDED OVER THE PAST SEVERAL YEARS, IS THE 500,000.

AT ONE TIME IT WAS 600,000, AND WE'VE LOWERED THAT DOWN AND ASK ENTERPRISE CENTER TO LOWER THEIR EXPENSE COSTS BECAUSE 500,000 GOES TO THE RECIPIENTS, AND THEN WE WERE PAYING $100,000 TO WT TO ADMINISTER THE PROGRAM AND WE ASKED THEM TO CUT SOME EXPENSES, AND THAT NUMBER HAS GONE DOWN TO 80,000. SO WE ASKED THEM TO CUT SOME EXPENSES.

SO OVERALL, THAT GRAND TOTAL IS 4,164,340.

THAT'S THE BUDGET THAT THE BOARD APPROVED BACK IN JULY, THAT AT A BOARD MEETING. SO CERTAINLY WOULD TAKE ANY QUESTIONS AS IT RELATES TO THE BUDGET.

OKAY. APPRECIATE THE OVERVIEW AND A LITTLE HISTORY LESSON THERE.

I THINK IT'S BEEN TIME WELL SPENT FOR US AND I DO APPRECIATE BEING HAVING THE ABILITY TO TELL ABOUT THE HISTORY BECAUSE WE DON'T GET THAT.

WE DON'T GET THIS PLATFORM TO ALWAYS TELL ABOUT THE HISTORY.

SO I APPRECIATE THAT IT'S BEING RECORDED AND HOPEFULLY SOME CITIZENS KNOW MORE ABOUT OUR HISTORY AND IF THEY HAVE QUESTIONS, THEY CERTAINLY CAN REACH OUT TO ME.

OKAY. THANK YOU.

SO WE'LL OPEN IT UP FOR QUESTIONS FOR MR. CARTER HERE, COUNCIL.

SO AS I UNDERSTAND IT, [INAUDIBLE] THE CITY HANDLES THEIR [INAUDIBLE].

YES, THAT IS CORRECT.

IS IT POSSIBLE THAT DO YOU KEEP RECORDS OF THEM IN THE SAME SYSTEM? DO YOU KEEP RECORDS FOR? SO WE KEEP THE RECORDS.

DO WE KEEP IT IN THE SAME SYSTEM AS THE CITY? YES, THAT'S CORRECT. SO IS IT POSSIBLE FOR US TO GET A LIKE THE REPORT THAT WE GET FOR ALL THE DEPARTMENTS, FOR THE CITY, IS IT POSSIBLE FOR US TO GET A COPY OF THAT FOR AEDC? SO EXPLAIN TO ME WHAT WHICH REPORT ARE YOU TALKING ABOUT? THIS BUDGET REPORT AND THE BUDGETING FOR ALL THESE DEPARTMENTS? YES WE GET WE GET BECAUSE IN HERE WE HAVE SOME LIKE I'M ASSUMING FY 22-23 IS BUDGET CORRECT?

[02:50:06]

THAT'S CORRECT, SIR. LIKE THIS REPORT DOESN'T REALLY HAVE ANY ACTUALS TO LOOK AT TO SAY, OKAY, HERE'S WHAT THE BUDGET WAS LAST YEAR AND THIS YEAR.

WHAT WERE THE ACTUAL SPENT? WE CAN OH, I'M SORRY AND SO BUT THIS FORMAT THAT WE'RE USED TO WORKING WITH ALL THE DEPARTMENTS, IF IT'S EASY TO PRINT OUT, IT WOULD JUST BE HELPFUL.

WELL, AND THAT'S A GREAT CLARIFICATION FOR ME AS WELL.

SO WE USE THE SAME FINANCIAL SYSTEM TO RECORD ALL OF THEIR ACTUAL EXPENDITURES.

WE DO NOT THEY DON'T USE OUR BUDGETING SOFTWARE.

WE TASK THEM WITH DOING THEIR OWN BUDGETING BECAUSE THEY TAKE IT TO THEIR OWN BOARD.

SO WE DO NOT HAVE THEM INSIDE THE SAME BUDGET SOFTWARE THAT PRODUCED THIS BOOK THAT'S IN FRONT OF YOU, BUT WE COULD IT MIGHT TAKE SOME WORK, BUT WE CAN CERTAINLY PIECE IT TOGETHER AND GET YOU SOMETHING THAT'S A LITTLE CLOSER TO THE SAME FORMAT THAT'S HERE.

SO IF THAT WOULD HELP.

COUNCIL MEMBER SIMPSON WE CAN ACTUALLY, IF YOU WANT US TO ON A MONTHLY BASIS, WHEN WE PRESENT THE FINANCIALS TO OUR BOARD, WE CAN JUST HAVE A LIST THAT SENDS THAT OUT TO A MAILING LIST THAT SENDS OUR FINANCIALS OUT TO YOU ALL, AND IT HAS, IT HAS PREVIOUS YEAR AND IT ALSO HAS AGAINST BUDGET.

WE CERTAINLY CAN SEND THAT TO YOU AS WE PRESENT THAT TO THE BOARD.

THAT'S NOT A NOT A PROBLEM.

WELL, I THINK THE ADVANTAGE TO IT TO ME IN THE BUDGETING AND EVEN HAVE AND I DON'T KNOW HOW MUCH HOW FAR ARE YOU BACK YOU GO MAYBE IT'S JUST YEAR COMPARED TO YEAR BUT JUST LIKE THAT WHEN WHEN I SAW THE INCREASE THAT ONE YEAR, THE MORE PERSPECTIVE YOU GET, THE MORE IT JUST SAYS, WELL, THAT'S A QUESTION I WANT TO ASK TO GET AN UNDERSTANDING OF WHY.

ABSOLUTELY. YES, SIR, AND SO WITH THIS, I DON'T YOU KNOW, WITH THE PRESENTATION HERE, I DON'T REALLY HAVE A WHOLE LOT OF HISTORY TO GO BACK AND SAY, WOW, WHY IS THIS LIKE THIS OR THIS NUMBER? AND I DON'T KNOW.

I DON'T KNOW TO ASK THE QUESTION, HEY, IF YOU ONLY SPENT 500,000 LAST YEAR, WHY ARE WE SPENDING 800,000 THIS YEAR? THAT'S CORRECT. YES, SIR. SO I DON'T KNOW IF IT CAN BE DONE WITH EASE.

I THINK IT WOULD BE FOR ME AS MUCH HISTORY AS YOU CAN GET TO BE ABLE TO DO THAT.

IT JUST IT HELPS ME KNOW THE QUESTIONS TO ASK.

YEAH, ABSOLUTELY. YES, SIR.

SO IF THAT'S SOMETHING THAT CAN BE DONE WITHOUT A WHOLE LOT OF EFFORT, THEN THAT WOULD BE GREAT, BUT I MEAN, IF YOU LOOK AT HOW THE CITY'S BUDGET PREPARED, AS CLOSE AS YOU COULD GET TO THAT, BUT I WOULD LIKE TO SEE SOME ACTUAL SPENDING JUST TO KIND OF COMPARE IT TO THE BUDGET COMPARED TO WHAT WE'RE REQUESTING AND THAT KIND OF THING, JUST SO THAT IT HELPS ME KNOW, AND SO OBVIOUSLY IN THE AUDIT IT HAS BUT IT'S A YEAR IT'S A YEAR PASS.

I CAN TELL YOU WHERE WE ARE TO BUDGET RIGHT NOW THIS YEAR WE'RE 67% OF THE YEAR IS THROUGH WE'RE AT ABOUT 56% OF THAT EXPENSE.

SO WE'RE AT 67% OF THE YEAR AND WE'RE 56% OF THE BUDGET SPENDING WISE RIGHT NOW.

YEAH, AND IT'S NOT IT'S NOT THAT I'M DIGGING TO SAY, WELL, I'M GOING TO FIND SOMETHING.

NO, ABSOLUTELY. I'M DIGGING BECAUSE I WANT TO I WANT TO LEARN MORE ABOUT IT, AND I THINK DURING THESE BUDGET HEARINGS, WHICH WE SPENT A LOT OF TIME ON, BUT I THINK IT'S BEEN A REALLY GOOD WAY TO GET US UP TO SPEED ON A LOT OF THINGS BY LOOKING AT SOME OF THAT DETAIL IN THE BUDGET AND ASKING A QUESTION EVERY NOW AND THEN TO EARN OUR $10 A MEETING.

YEAH. I CAN LET YOU SEE A COPY OF THAT FORMAT.

IF THIS FORMAT LOOKS FOR YOU AND IT DOES ONLY COMPARE THE TWO YEARS, I MEAN, THE YEAR THAT YOU'RE IN AND THE PREVIOUS YEAR, BUT WE CERTAINLY CAN COORDINATE WITH THE COUNTY TO SEE IF WE CAN PUT SOMETHING TOGETHER.

I THINK WE CAN ACTUALLY THINKING THROUGH IT AND MATT REMINDED ME, WE DO HAVE WE CAN PULL IN THEIR ACTUALS INTO OUR BUDGET SOFTWARE, AND I THINK WITH A LITTLE COMBINED EFFORT, WE COULD PROBABLY EVEN PRODUCE THIS SAME REPORT, IF YOU WILL.

GIVE US JUST A LITTLE BIT OF TIME.

I THINK WE COULD GET SOMETHING TURNED AROUND FOR YOU GUYS ON THAT.

GREAT. JUST BECAUSE AS WE LOOK AT A BUDGET, IT'S APPLES TO APPLES.

SO WE'RE LOOKING AT THE SAME INFORMATION FROM ALL THESE CITY DEPARTMENTS, AND I THINK IT SHOULD BE EASIER IF WE HAVE THAT.

WE'LL GET THAT ON OUR LIST TO GET TURNED AROUND FOR YOU GUYS AND WE'LL RUN IT PAST KEVIN AND HIS TEAM TO MAKE SURE THAT WE'RE ALL ON THE SAME PAGE WITH IT.

OKAY. I HAVE A COUPLE OF QUESTIONS.

YES, SIR. FOR INSTANCE, LIKE THIS.

80,000 FOR CHAMBER OF COMMERCE? YES, SIR. WHAT ARE WE GETTING FOR THAT 80 OR WHAT IS HAPPENING? I MEAN, THEY ARE A BUSINESS ORGANIZATION.

THAT'S CORRECT. YES, SIR. MEMBERSHIP DUES, AND I DON'T UNDERSTAND WHY.

A TAX BASE.

WOULD BE GIVING $80,000.

I JUST NEED A LITTLE UNDERSTANDING.

YEAH. SO I DON'T KNOW THE COMPLETE HISTORY OF THIS.

I'M JUST I AM I KNOW A LITTLE BIT OF THE HISTORY OF HOW IT STARTED.

I DO KNOW THAT IF YOU LOOKED OVER THE WEST TEXAS AREA BECAUSE MY PREVIOUS JOB, I WAS INVOLVED IN A LOT OF REGIONAL I MEAN, NOT CITY ECONOMIC DEVELOPMENT ORGANIZATIONS AND CITY BUDGETS.

I WOULD SAY THAT THE MAJORITY OF THE CITY BUDGETS IN WEST TEXAS HAVE A FEE FOR SERVICE FOR YOUR CHAMBER OF COMMERCE

[02:55:04]

I DON'T BELIEVE THE CITY HAS THAT IN THEIR IN YOU ALL'S BUDGET, BUT ALSO I DO KNOW HISTORICALLY HAPPENED SEVERAL YEARS AGO.

IT WAS A WAY FOR BECAUSE OF THE PRIMARY JOB REQUIREMENT THAT THE AEDC MAY HAVE STARTED THAT TO HELP WITH SMALL BUSINESS, BECAUSE WE'RE NOT WE DON'T HAVE THE ABILITY TO HELP A SMALL BUSINESS AND SO IT WAS A WAY TO HELP SMALL BUSINESSES OUT WITH THAT ASSOCIATION.

I'M JUST THAT IS JUST A PURE SPECULATION.

I DO NOT HAVE THE HISTORY AND THERE'S NOT ANYBODY AT THE ORGANIZATION THAT HAS A HISTORY THAT HAPPENED BEFORE DOUG GOT THERE IN 2011.

SO IT'S JUST A SPECULATION BECAUSE THERE ARE A LOT OF OF CITIES.

I KNOW THE CITY THAT WHERE I LIVED PREVIOUSLY IN PLAINVIEW FOR 29 YEARS.

THEY PAY THEIR CHAMBER $65,000 A YEAR AS A FEE FOR SERVICE FOR WHAT THEY'RE DOING.

SO, BUT WE DON'T HAVE AN AGREEMENT.

I'M SORRY. OKAY.

SO WE REALLY DON'T KNOW WHERE THIS 80,000 REALLY GOES.

WE DO KNOW THAT I MEAN, NOT NOT LINE ITEM.

WE DON'T KNOW EXACTLY WHERE IT GOES.

WE JUST KNOW THAT IT GOES TO HELP WITH THEIR SERVICES.

OKAY. IS THERE ANY WAY WE COULD ASK THEM WHERE THEY WOULD SPEND OR WHERE? I MEAN, I'M LOOKING AT NO, ABSOLUTELY.

I'M LOOKING AT THE TAXPAYERS AND I GOT TO ANSWER SOME QUESTIONS.

YEAH. ANOTHER THING, COUNCILMAN, I THINK ON THAT ONE, JASON HARRISON WOULD BE ONE THAT WE COULD BRING IN AND LET HIM ADDRESS US, AND THEN THAT WAY WE WOULD HEAR IT FROM HIM ON WHAT IS YOUR RETURN ON THAT INVESTMENT? AND IF, IF WE WEREN'T TO HAVE THAT IN, IN YOUR BUDGET FROM THE AEDC, WHAT DOES THAT DO TO HIM? LIKE WHAT ARE THEY? ARE THEY SALESMEN IS KIND OF WHAT I'D WANT TO KNOW.

ARE THEY DOWN IN AUSTIN OR ARE THEY LOBBYING FOR AMARILLO? DO THEY HAVE ANY METRICS THAT THEY CAN TRACK WHERE THEY CAN SHOW, HEY, WE'VE BROUGHT THESE BUSINESSES HERE, WE FACILITATE THESE BUSINESSES, WHATEVER THAT IS, AND THEN IF THEY CAN'T, OBVIOUSLY, THEN THEN THAT'S A MEMBERSHIP FEE THAT GOES TOWARDS AN OVERALL, AND WE WOULD SEE THAT PERHAPS MAYBE AS A CITY ROLE THAT WOULDN'T BE THE DIRECTIVE, BUT I WOULD DEFINITELY LOVE TO HAVE JASON BE ABLE TO, TO SPEAK TO THAT BECAUSE BECAUSE I'M NOT WE SHOULDN'T BE ASKING YOU TO SPEAK TO THAT NECESSARILY AS A LINE ITEM.

ABSOLUTELY. I'LL VISIT WITH JASON.

ANOTHER THING HERE.

WE HAD THE PORTS TO PLAINS.

IS THAT AN INCREASE OVER LAST YEAR'S.

IT IS OF ABOUT 11,000 BECAUSE I ANTICIPATE TYPICALLY THEY REDO THE DUES STAY FLAT FOR TEN YEARS AND IT'S BASED ON POPULATION.

I WOULD ANTICIPATE THAT THE NEW INVOICE WILL HAVE THE NEW CENSUS ON THERE.

I THINK THE AMOUNT PER CITIZEN IT'S BASED ON AMOUNT PER CENT PER CITIZEN.

I WOULD ANTICIPATE THAT IT WAS 114,000 LAST YEAR.

I'M ANTICIPATING A SMALL INCREASE JUST BECAUSE THE CENSUS WE WENT UP ARE WE GETTING $125,000 WORTH OF SERVICES? I WOULD SAY YES.

I'VE GOT SOME OF THE SOME OF THE THINGS THAT I'VE GOT.

I HAD THEM HAVE THEM SEND ME A ONE SHEETER.

THEY CONDUCTED A FEASIBILITY STUDY.

I WILL SAY THAT I DO HAVE TO GIVE THANKS TO OUR TEXAS DELEGATION IN THE STATE AND NOT IN THE STATE, ALSO THE STATE, BUT ALSO AT THE FEDERAL LEVEL.

SENATOR CRUZ AND SENATOR CORNYN GOT ON THIS, GOT ON BOARD TO HELP WITH THAT I 27 DESIGNATION.

THAT'S HUGE. THAT'S WHAT WE'VE BEEN SHOOTING FOR.

I MEAN I TEASE OUR FRIENDS IN LUBBOCK THAT THEY HAVE AN INTERSTATE AND THEY ALWAYS SAY THEY HAVE MILE MARKER ONE, BUT I SAY, WHERE DOES IT END UP? IT ENDS UP IN AMARILLO.

SO I KIND OF GIVE THEM A HARD TIME, BUT THAT'S BEEN A LONG ROAD.

THAT INTERSTATE WAS BUILT IN THE 80S.

WE'VE BEEN WORKING ON THIS DESIGNATION FOR THAT LONG PORTS TO PLAINS HAS BEEN AROUND, AND SO SOME OF THE THINGS THAT THEY HELPED THIS PAST YEAR THROUGH LEGISLATURE, THROUGH LOBBYING EFFORTS THAT PROJECTS FOR THIS LAST YEAR, $370 MILLION ARE GOING TO THE AMARILLO DISTRICT OF TXDOT THE FY 24 DRAFT SHOWS THAT NUMBER IS $683.8 MILLION.

IT'S GOING TO GO TO THE AMARILLO AREA FOR TXDOT PROJECTS, AND THIS ORGANIZATION IS FIGHTING ON OUR BEHALF TO INCREASE THOSE DOLLARS.

I DON'T KNOW WHAT THOSE DOLLARS WOULD HAVE BEEN HAD HAD PORTS TO PLAINS NOT BEEN INVOLVED.

THAT WAS MY QUESTION IS I MEAN, I GUESS THERE'S NO WAY OF KNOWING WHAT THAT NUMBER WOULD BE, AND HAVE WE HAD WE NOT HAD THAT EFFORT DOWN THERE? CORRECT. I MEAN, THAT WAS THAT WAS ONE OF MY QUESTIONS.

HERE FOR BUSINESS PARK INFRASTRUCTURE.

[03:00:03]

DOES THAT REALLY NEED TO BE IN YOUR BUDGET? BECAUSE THAT WOULD BE SOMETHING TO ME THAT YOU WOULD INCLUDE WITH A PROJECT.

YES, SIR. WE DO INCLUDE SO THE ONES THAT ARE PROJECT SPECIFIC.

SO YOU GO DOWN TO LET'S SAY LET'S TAKE THE [INAUDIBLE] PROJECT.

THAT'S OUR RECENT ONE THAT WE SPENT SOME MONEY ON.

WE SPENT SOME MONEY ON INFRASTRUCTURE THERE.

NOW, OBVIOUSLY, WE GOT TWO AND A HALF, 2.4 MILLION FROM THE ECONOMIC DEVELOPMENT ADMINISTRATION TO HELP WITH THAT, BUT PART OF THAT IS WE SPENT SOME INFRASTRUCTURE MONEY ON WE'RE GOING TO PAY FOR PART OF THE 2016 BOND ELECTION WITH SOUTH GEORGIA EXPANSION.

WE'RE GOING TO PAY FOR THE I THINK WE'RE GOING TO PAY FOR 6 OR 800FT OF THAT BECAUSE THE CITY DIDN'T THE CITY IT WASN'T THE WHOLE ALL OF GEORGIA, AND WE WANT TO CONNECT FARMERS TO THE LOOP, AND SO WE'RE GOING TO PAY FOR THAT.

WE'VE ATTACHED IT TO THAT, BUT THAT IS JUST THE ABILITY TO IF WE HAVE THIS 171 PIECE, THAT 163 ACRES THAT WE HAVE OVER THERE, IF WE WANT TO DO SOME INFRASTRUCTURE IMPROVEMENTS WITHOUT NAMING A PROJECT WE DON'T HAVE A PROJECT IN THERE.

IF WE WANTED TO MAKE THAT MORE ATTRACTIVE, IT JUST GAVE US THE ABILITY TO DO THAT.

OBVIOUSLY WE CAN COME TO Y'ALL AND ASK FOR THAT MONEY.

IT WAS JUST IT'S HISTORICALLY BEEN DONE THAT WAY.

IT DOESN'T MEAN YOU GOT TO DO IT THAT WAY EVERY YEAR, AND IT DOESN'T MEAN THAT IT HAS TO BE IN THE BUDGET.

WT ENTERPRISE.

YES, SIR. EXPLAIN THAT ONE TO ME.

OKAY, SO THIS PAST YEAR WAS THE 27TH YEAR.

WE'VE BEEN DOING IT FOR 29 YEARS.

WT ASKED FOR A TWO YEAR HIATUS ON THAT, AND SO THAT PROGRAM HAS BEEN MODELED ALL OVER THE STATE.

WE'VE HAD I KNOW I'VE HAD SEVERAL PEOPLE CALL ME BEFORE I GOT TO AMARILLO WHEN I WAS IN THE REGIONAL ROLE.

HEY, WHO HAS A MODEL LIKE THIS? AND SO WE TURN THEM ON TO THE WEST TEXAS ENTERPRISE CHALLENGE, AND SO IT'S HAD A LONG HISTORY I GAVE YOU SOME FACTS AND FIGURES FROM THAT.

IT WAS JUST A WAY FOR US TO HELP SMALLER COMPANIES.

IT HAD SOME CHALLENGES EARLY ON, AND WE'VE OVER THE PAST FEW YEARS HAVE REVAMPED THAT PROGRAM TO MAKE IT ALIGN WITH OUR MISSION WHERE THEY HAVE TO BE IN IN BUSINESS.

IT CAN'T BE A START UP.

THEY HAD TO SIGN UP WITH ONE OF THOSE FIVE PARTNER BANKS THAT WE HAVE, AND THEN ALSO THEY HAD TO FIT THAT PRIMARY JOB ROLE WHERE THEY ARE PROVIDING THAT SERVICE WHERE 51% OF THEIR GOODS AND SERVICES HAVE TO BE EXPORTED OUTSIDE OF OUR AREA AND SO IT'S PART OF BEING A COMMUNITY AND PART OF WAY FOR US TO BE INVOLVED WITH WEST TEXAS A&M FOR THAT, I THINK.

LLOYD, DO YOU HAVE SOME COMMENTS? SO I CAN GIVE YOU A BACKGROUND BECAUSE A COMPANY I WAS INVOLVED WITH IN 2001, WE WON.

WE'RE ONE OF THE WINNERS OF THE AEDC CHALLENGE.

SO I'VE HAD A LONG, INTIMATE RELATIONSHIP WITH IT AND I'M ALSO A MENTOR AND A COACH AT THE ENTERPRISE CENTER TODAY, AND SO WHAT IT DOES, IT WAS CREATED ORIGINALLY TO BE A SOURCE OF CAPITAL AND ORIGINALLY THE HIGHEST THE AWARD COULD BE WAS $50,000.

I DON'T KNOW WHAT YEAR THAT IT WENT TO.

100, BUT I'M GOING TO ESTIMATE IT WAS AROUND 2015 TO 2018, AND THAT'S THE MAXIMUM THAT CAN BE AWARDED TO A COMPANY.

SO WHAT HAPPENS IS THESE ARE SMALL BUSINESSES THAT HAVE A PRODUCT OR SERVICE THAT'S EXPORTED OUTSIDE OF THE COMMUNITY.

THEY TO WIN AN AWARD, THEY HAVE TO GO THROUGH A PROCESS, AND IT'S A VERY DEEP PROCESS TO UNDERSTAND WHAT THEIR BUDGET IS. THEY AND THEY HAVE MULTIPLE WORKSHOPS.

SO BASICALLY IT'S AN ENTREPRENEUR TRAINING CENTER AND HELPING BUSINESSES BECOME BETTER, AND IT GIVES THEM MOST OF THOSE COMPANIES A SOURCE OF CAPITAL FROM A BANK.

THEY DON'T HAVE THE FINANCIAL WHEREWITHAL TO GO BUY A PIECE OF EQUIPMENT THAT HELPS THEM LEVERAGE THEIR BUSINESS AND GROW THEIR BUSINESS, OR THEY DON'T HAVE THE ABILITY TO RECRUIT A CERTAIN TYPE OF TALENT.

SO WHAT THEY'RE GOING TO SPEND THAT MONEY ON IS DESIGNATED IN THAT PLAN, AND SO THAT'S WHAT THE ENTERPRISE CHALLENGE IS, IS TO HELP GROW OUR OWN SMALL LOCAL BUSINESSES TO BECOME SOMETHING REALLY DYNAMIC.

ONE OF THE [INAUDIBLE] IS A PREVIOUS WINNER.

YOU CAN GO THROUGH THERE'S MULTIPLE NAMES OF COMPANIES THAT WERE WINNERS WITHIN THIS PROCESS, BUT THE PROCESS WAS QUITE FRANKLY FLAWED, AND DOUG CAN TALK ABOUT THAT BECAUSE THERE WAS NOT A REAL GOOD.

WAY TO ACCOUNT THAT THEY WERE SPENDING THE MONEY THAT THEY WAY THEY THE WAY THEY THEY SHOULD, AND SO I GIVE KEVIN AND HIS TEAM CREDIT.

[03:05:09]

THERE ARE BUSINESSES THAT DON'T EXIST TODAY THAT WERE PART OF THAT PROCESS.

THERE ARE PEOPLE THAT HAVE MOVED OUT OF TOWN.

SO IT'S A RELATIVELY LOW RISK.

PROCESS THAT IS NOW GOTTEN REALLY MUCH BETTER BECAUSE THERE IS THE FIDUCIARY STANDPOINT WITH OUR BANKING PARTNERS.

THE OTHER THING THAT'S REALLY YOU NEED TO KNOW IS.

NOT ALL THE MONEY IS AWARDED EVERY YEAR JUST BECAUSE THERE'S 500,000 IN THE BUDGET.

IF THERE'S NOT ENOUGH COMPANIES THAT QUALIFY AND THERE'S A GROUP, A BOARD OF BUSINESS OWNERS AND BANKERS THAT ACTUALLY VET THE COMPANIES IN THIS PROCESS THAT CAN THEY HAVE TO CONVINCE THEM TO AWARD THEM THE AMOUNTS THAT THEY THAT THEY WIN.

SO I GUESS TWO YEARS AGO, IT WAS 375 WAS ALL THAT WAS SPENT 399, ACTUALLY.

399 AND SO IT'S THERE'S SOME REAL GOOD BOUNDARIES AROUND HOW MUCH OF THAT MONEY IS INVESTED, AND THEN THE OTHER THING, AT ONE POINT, THE AEDC WAS BEARING A PRETTY HIGH AMOUNT OF THE OPERATING BURDEN FOR THE CENTER, MORE THAN ITS FAIR SHARE, AND KEVIN AND HIS TEAM AND DOUG REALLY DROVE HARD TO UNDERSTAND WHAT THOSE EXPENSES WERE, AND I HAVE TO SAY, BRIAN EVENSON THAT IS THE MANAGER THERE NOW HAS DONE A PHENOMENAL JOB OF CREATING A RELATIONSHIP WITH THE AEDC AND HAVING THE KIND OF CLARITY AND TRANSPARENCY THAT'S NEEDED BETWEEN OUR ORGANIZATIONS WORKING TOGETHER, AND I WOULD SAY ALSO COUNCIL MEMBER SCHERLEN THAT LET'S JUST SAY A RECIPIENT RECEIVES $100,000.

THEY HAVE TO SIGN A PROMISSORY NOTE.

THEY HAVE TO WORK THAT OFF.

IF THEY DON'T FULFILL THEIR DEAL, THEY HAVE TO PAY THAT MONEY BACK AS IT GOES AND I WILL TELL YOU, WE'VE HAD TO DO THAT TWICE SINCE I'VE BEEN HERE.

WE'VE HAD TO TAKE A VEHICLE BACK THAT WAS PURCHASED, AND THAT'S NOT AN EASY DEAL TO DO, AND YOU FEEL TERRIBLE ABOUT THAT, BUT YOU KNOW THAT BUSINESS MADE THAT COMMITMENT TO FULFILL THAT OBLIGATION, AND THEY DIDN'T, AND SO WE HAD TO MAKE GOOD ON THAT FOR THE CITIZENS.

SO WE ARE OUT THERE PROTECTING.

THEY HAVE TO SIGN A PROMISSORY NOTE.

IT'S NOT JUST A GIFT.

THEY HAVE TO MEET CERTAIN STANDARDS, AND OBVIOUSLY NOW WITH THE BANKS BEING INVOLVED, THAT HAS MADE A HUGE DIFFERENCE THAT THOSE BANKS WANT TO BE INVOLVED AND HAVE THAT BANKING RELATIONSHIP WITH THEM.

THANK YOU. IN THIS ENTERPRISE SYSTEM, ARE THERE OTHER PLAYERS GIVING MONEY TO THE ENTERPRISE SYSTEM? IT'S JUST US.

SO, LOOKING AT IT FROM A TAXPAYER'S STANDPOINT.

WE'RE INVESTING.

WE'RE FOOTING THE BILL.

I GUESS YOU WOULD SAY.

IS THAT TRUE? OR THESE COMPANIES.

WELL YOU'RE INVESTING IN THAT COMPANY JUST LIKE YOU WOULD JUST LIKE LAST COUNCIL MEETING I BROUGHT AND WE DID A JOB CREATION INCENTIVE FOR FOR FOR PLANT, IT'S THE SAME TYPE.

IT'S JUST ON A SMALLER SCALE FOR A SMALLER BUSINESS THAT ACTUALLY IS PROVIDING THE SAME SERVICE.

THEY'RE PROVIDING A PRIMARY JOB NOT THEY'RE NOT A RETAIL BUSINESS.

THEY FIT. THEY FIT THE MODEL WITH THIS 501 AND 504 STATUTES, THEY HAVE TO MEET THESE CERTAIN NAICS CODES, THE NORTH AMERICAN INDUSTRIAL CLASSIFICATION SYSTEM.

THERE'S CERTAIN CODES THAT'S IN LIKE PAGE 2 OR 3 OF THAT FIRST TAB.

THEY HAVE TO FIT THAT MODEL, AND SO IT JUST IS A IT'S ON A SMALLER BASIS THAN IT WOULD BE FOR US TO COME IF THAT COMPANY CAME TO US, THEN WE WOULD COME TO YOU ALL AND DO THAT.

I WILL TELL YOU, THE JUDGING IS INDEPENDENT.

WE DON'T WE'RE NOT WE'VE NEVER BEEN ONE OF THE JUDGES.

OUR GROUP'S NEVER BEEN ONE OF THE JUDGES.

IT'S ALL I THINK THERE'S A REQUIREMENT THAT ONE OF THEM HAS TO BE A BANKER.

ONE OF THEM HAS TO BE HAS TO BE A FORMER WINNER, BECAUSE THAT'S PART OF GIVING BACK FOR BEING A WINNER.

YOU HAVE TO JUDGE AND THAT'S PART OF GIVING BACK, AND SO AND I WOULD FROM THE STANDPOINT OF COST EXPENSE, WEST TEXAS A&M PROVIDES THE FACILITY.

THEY PROVIDE THE COACHES.

SO THE ONCE A COMPANY WINS, THEY ALSO HAVE TO PARTICIPATE IN COACHING.

[03:10:06]

WHEN THEY COMPENSATE, THEY THEY FOOT THE BILL AS WELL.

ACTUALLY, THERE IS ANOTHER BIG PLAYER INVOLVED, WEST TEXAS A&M.

THAT'S CORRECT. DO WE KNOW HOW MUCH THEY PUT INTO THIS BY CHANCE? I'M SURE I'M ASKING A QUESTION.

YOU ALL DON'T HAVE ANY IDEA.

ALL I CAN SAY IS IN THE AWARDS, THEY'VE NOT PARTICIPATED AT ALL.

OKAY, BUT THEY DO PROVIDE SERVICES WITH TAX MONEY THEY'RE PROVIDING SERVICE OR PROVIDING A BUILDING AND THOSE KIND OF THINGS, BUT I DON'T KNOW WHAT THAT NUMBER IS.

I MIGHT BE ABLE TO GET THAT NUMBER IF THAT'S SOMETHING THAT YOU'D LIKE.

I THINK I PRETTY WELL PROBABLY KNOW IT'S A GOOD BIG NUMBER.

YEAH, IT'S PROBABLY A LOT MORE THAN WHAT WE'RE INVESTING IN.

WELL, ESPECIALLY VERSUS THE 80,000 THAT WE'RE INVESTING IN WT.

YEAH. ONE MORE. WELL, I THINK I ACTUALLY GOT TWO MORE QUESTIONS.

OKAY. IS THAT OKAY? HEY, CAN I ASK WHILE WE'RE ON ENTERPRISE CHALLENGE, IS IT OKAY IF I JUST ASK A QUESTION ON THAT AND THEN WE CAN.

SO YOU AWARDED FIVE COMPANIES LAST YEAR.

HOW MANY DID YOU HAVE THAT WERE IN THE PROGRAM LAST YEAR? DO YOU REMEMBER? OH, LET'S SEE HOW MANY COMPANIES LIKE APPLIED FOR IT, YOU MEAN? IT WAS SOMEWHERE IN THE CLOSE TO 20 RANGE, I BELIEVE.

DON'T QUOTE ME ON THAT, BUT I'M JUST I THINK THAT COMES TO MIND AS THEY'RE TRYING TO COMPETE FOR THIS.

THEY'RE GETTING COACHING ON HOW TO COMPETE, HOW TO DO THAT, HOW TO DO THAT, AND THEN SO SO THERE'S A BENEFIT NOT JUST JUST THESE FIVE COMPANIES, BUT THESE OTHER 15 AND THE ONLY REASON I ACTUALLY WENT TO THE GRADUATION OR THE AWARD CEREMONY LAST YEAR AND I KNOW THAT THE FAMILY THAT OWNS THIS AKTR WITH [INAUDIBLE] AND I THINK IT WAS THEM OR MAYBE ONE OF THE OTHERS THAT SAID THIS WOULD HAVE BEEN A BENEFIT TO ME EVEN IF WE DIDN'T GET THE $100,000, AND I HEARD THAT.

SO I THINK WE MEASURE THROUGH THE GRANT MONEY, BUT I THINK AN UNINTENDED BUT GOOD BENEFIT OF THIS IS THERE MAY BE A LOT OF BUSINESSES OUT THERE THAT DID NOT RECEIVE THIS GRANT MONEY, BUT THROUGH THE COACHING SERVICES THAT WERE PROVIDED THROUGH THIS PROGRAM AND W.T.

ARE PROBABLY CONTRIBUTING TO THE ECONOMY.

WE'RE JUST NOT TRACKING IT BECAUSE THEY WERE NOT NECESSARILY ON THE WINNERS LIST BECAUSE THEY DO GO THROUGH AN ORIENTATION AND THEN THEY'RE SELECTED TO BE A SEMIFINALIST AND THEN A FINALIST. THAT'S CORRECT.

YES, SIR. I WOULD ADD TO THAT COUNCILMAN THAT.

THEY END UP DOING PEER TO PEER COACHING AND THEY CREATE A NETWORK THAT IS VERY POWERFUL AND EVEN SOME NON WINNERS JOIN THAT NETWORK BECAUSE.

AS BEING A BUSINESS OWNER, IT'S LONELY, AND THAT'S THE OTHER KEY THING THAT HAPPENS WITHIN THE ENTERPRISE CHALLENGE IS REALLY A KICK STARTER FOR OUR ECONOMY IN MULTIPLE WAYS, BUT IT DOES ALSO PROVIDE THE RESOURCE FOR THESE BUSINESSES TO LEARN BEST PRACTICES AND THEN TO CONTINUE TO GROW.

THANK YOU. THANK YOU, TOM.

[INAUDIBLE] TO GO NEXT IS I KNOW LAST YEAR Y'ALL GAVE SOME BONUSES THAT WERE GIVEN.

IS THAT IN A CONTRACT SOMEWHERE OR IS THAT JUST HOW IS THAT HANDLED? OKAY. SO I DO RECEIVE A BONUS.

IT IS PART OF A CONTRACTUAL, A CONTRACT THAT I HAVE WITH AEDC.

I'M THE ONLY ONE. I'M THE ONLY ONE WITH AN EMPLOYMENT CONTRACT, AND THEN HISTORICALLY, AS FAR BACK AS WE CAN GO, THERE HAVE BEEN BONUSES GIVEN TO STAFF AS WE'VE PERFORMED AND SO THAT IS ON A CASE BY CASE BASIS AND A YEAR BY YEAR BASIS.

WHEN WE'RE SUCCESSFUL, THOSE MAY GO UP AND WHEN THERE AND WHEN IT'S NOT AS SUCCESSFUL, THEY MAY NOT BE THE SAME AS THEY WERE THE YEAR BEFORE.

I MEAN, THAT'S THE WAY MOST.

THAT'S CORRECT. YES, SIR.

THE ONLY QUESTION I HAVE ABOUT THAT IS I HAVE MANAGERS HERE WITHIN THE CITY.

THEY ARE HANDLING.

A HALF BILLION DOLLAR BUDGET, AND WE'RE NOT ABLE TO GIVE THEM ANYTHING, AND I JUST WONDER.

WE'RE STILL TALKING.

I KNOW YOU CAN LEGALLY DO IT.

I HAVE NO QUESTION THERE.

YES, SIR, AND IT'S A LEGAL PROCESS.

I JUST WONDER IF WE'RE NOT LOOKING AT IT.

FROM TWO VIEWPOINTS.

I MEAN, I WHEN IT COMES TO TAXPAYER MONEY, I MEAN, IF IT'S IN YOUR CONTRACT, IT'S IN YOUR CONTRACT.

YES, SIR, AND DID WE HAVE ANY APPROVAL OF THAT OR DID THAT COME TO COUNCIL? NOT NOT THE SPECIFIC BONUSES, BUT IT IS INCLUDED IN THE PAYROLL AMOUNT.

[03:15:04]

SO THAT BUDGETED NUMBER DOES HAVE SOME DISCRETIONARY FUNDS THAT CAN BE USED FOR A BONUS PAYOUT.

I WILL TELL YOU THAT IT IS INDUSTRY STANDARD.

YOU CAN THERE'S A SALARY SURVEY OUT ON OUR STATE ASSOCIATION, TEXAS ECONOMIC DEVELOPMENT COUNCIL.

I WOULD SAY 80% OF THE EDOS IN THE STATE DO PROVIDE BONUSES TO THEIR STAFF.

SO THAT'S AN 80% NUMBER BECAUSE IT'S AN INDUSTRY STANDARD.

I DON'T KNOW WHAT THAT NUMBER IS NATIONWIDE.

I HAVEN'T SEEN IEDC, WHICH IS THE INTERNATIONAL ECONOMIC DEVELOPMENT.

I DO HAVE A SALARY SURVEY THAT WAS DONE FOR ONE OF OUR ONE OF MY COLLEAGUES THAT DOES IT HAS THE, IT HAS AN AVERAGE, IT HAS THE COMMUNITY ON THERE THAT COMMISSIONED THE SURVEY.

WE ARE BELOW AVERAGE ON I WOULD SAY EIGHT OUT OF NINE OF OUR SALARIES.

WE'RE BELOW AVERAGE IN THAT, AND WE HAVE A BIGGER BUDGET THAN MOST OF THE ONES THAT ARE ON THAT SALARY SURVEY, BUT THATTHAT'S THE EXPLANATION.

YES, SIR. OKAY.

I MEAN, I CERTAINLY UNDERSTAND YOUR I SEE YOUR POINT.

I MEAN, I DO SEE THAT SIDE OF IT, AND I'M LOOKING AT THIS FROM A VIEWPOINT OF OUR EMPLOYEE STAFF IS BASICALLY, I THINK THREE OF YOUR EMPLOYEES HAVE HIGHER PAY OR THEY'RE IN THE TOP TEN OF MY CITY STAFF WOULD FALL IN THAT WAY.

I THINK I WOULD SAY I WOULD SAY MYSELF INCLUDED IN THAT AND THE TOP TWO EMPLOYEES THAT THERE WOULD I MEAN, I DON'T KNOW WHAT CITY EMPLOYEES MAKE, BUT I WOULD SAY THAT WE PROBABLY ARE IN THE TOP AT LEAST 10%.

I WOULD SAY THAT OF THOSE THREE PEOPLE.

I JUST WANT THAT OUT THERE.

ABSOLUTELY. YES, SIR.

I'M NOT DEMEANING YOU, BUT.

OH, NO, I'M NOT TAKING I'M NOT TAKING IT THAT WAY.

NO, I'M JUST ASKING.

I THINK IT'S I MEAN OUR SALARIES ARE OPEN TO THE PUBLIC IF SOMEBODY WANTS TO KNOW THOSE.

I MEAN, IT'S A TRANSPARENT IT'S OPEN RECORDS, AND I THINK SINCE I'VE BEEN HERE, WE'VE WANTED TO BE TRANSPARENT ABOUT WHAT WE'RE DOING, AND SO I CERTAINLY DON'T HAVE ANY PROBLEM WITH ANSWERING ANY QUESTIONS BECAUSE I THINK IT'S IMPORTANT FOR US TO BE TRANSPARENT.

WE'RE TAKING TAXPAYER MONEY AND WE HAVE A JUDICIOUS RESPONSIBILITY TO LET THE TAXPAYER KNOW WHAT'S GOING ON.

OKAY, AND JUST TO HIGHLIGHT ON THAT, I MEAN, WE AS THE BOARD, THAT IS SOMETHING THAT THE COUNCIL ASKS US TO DO IS WHEN SALARY NEGOTIATIONS COME UP, WE'RE VERY CONSCIOUS OF WHERE WE LINE UP WITH OTHER CITIES.

WE DON'T WANT TO WE DON'T WANT TO BE THE OUTLIER.

WE WANT TO BE THE MAKE SURE WE ARE STEWARDS OF THE TAXPAYER MONEY WHEN WE WERE NEGOTIATING KEVIN'S SALARY OR ANYTHING LIKE THAT.

SO WE WENT THROUGH THAT PROCESS A COUPLE OF YEARS AGO AND THERE ARE THINGS WE GOT THAT WE DIDN'T THINK WERE RIGHT, AND THEN THERE WERE THINGS WE ADDED TO MAKE IT FOLLOWING THAT STANDARD OF WHAT DOING AND REALLY WHAT TO ME, THIS TEAM THAT'S BEEN CREATED IS, IS PROBABLY ONE OF THE BEST IN THE TEXAS BASED ON WHAT'S HAPPENED AND YOU KNOW, WE THINK WE'RE GETTING EVERY DOLLAR OUT OF THEM AS WE ARE WITH WHAT THEY'RE DOING.

SO WE'RE VERY YOU KNOW, WE CUT SOME THINGS, BUT WE ADD SOME THINGS, BUT WE'RE VERY AWARE OF WHAT PROTECTING THE TAXPAYERS DOLLARS WHEN WE GO THROUGH THESE CONTRACTS. OKAY.

THANK YOU, ANDREW.

ONE LAST QUESTION. CAN YOU BELIEVE KEEP ASKING.

I'M FINE. I'M ALREADY THROUGH.

I GOT WATER. I MAY NEED TO STOP FOR A BREAK IN A MINUTE, BUT, IS THERE WOULD WE BE BETTER OFF GOING TO A TYPE B, AEDC? I WILL TELL YOU.

I'LL GIVE YOU THAT ANSWER.

THAT QUESTION GOT ASKED TO ME WHEN I INTERVIEWED.

I CAN REMEMBER WHO ASKED ME THAT QUESTION AND IT WAS BRIAN HEINRICH.

HE WAS ON THE HIRING COMMITTEE, AND HERE'S MY DEAL.

I DID THIS ON A REGIONAL BASIS.

SO 55 COMMUNITIES, I KNEW EXACTLY WHAT WAS GOING ON IN THOSE 55 COMMUNITIES.

IN MY PREVIOUS JOB, I WAS IN PLAIN VIEW, BUT PART OF THE HIGH GROUND OF TEXAS, WE HAD 55 EDOS AS MEMBERS, SIX OF THOSE LARGE THAT'S MIDLAND, ODESSA, ABILENE, SAN ANGELO AT THE TIME, AND AMARILLO AND LUBBOCK AND THEN 47 OR 48 SMALL ONES.

I WILL TELL YOU, THERE'S 800 EDOS IN THE STATE, 260 OR 70 ROUGHLY ARE TYPE A'S AND THE OTHERS ARE TYPE B'S.

SO ANYWAY, LONG STORY SHORT, THE QUESTION WAS ASKING ME AND IT WAS ONE OF THOSE DEALS WHERE IF IT WAS RIGHT FOR ME TO ANSWER IT THE WAY BECAUSE THIS IS THE WAY I FEEL IT HELPED ME GET THE JOB OR IT DIDN'T HELP ME GET THE JOB.

I WAS GOING TO ANSWER IT THE WAY I BELIEVE A CITY THIS LARGE NEEDS TO BE A TYPE A CORPORATION, AND THE REASON WHY IS THAT YOU ARE TASKED.

[03:20:06]

AS FAR AS IN JOB CREATION, WHEN YOU'RE A TYPE B CORPORATION, YOU CAN USE THAT MONEY FOR COMMUNITY DEVELOPMENT.

THERE IS NOTHING WRONG WITH DEVELOPING YOUR COMMUNITY, BUT WHEN YOU'RE TAKING MONEY THAT WAS INTENDED TO CREATE JOBS AND YOU'RE USING THEM AND YOUR PARKS AND YOU'RE USING THEM FOR OTHER THINGS THAT ARE NOT INTENDED BY THE FIRST SECTION OF THE LAW, I THINK THAT YOU DO A DETRIMENT TO YOUR TO YOUR CITY BY NOT USING THE MONEY AS IT WAS INTENDED, TO CREATE JOBS, AND SO THERE ARE SOME LARGER CITIES.

MOST OF THOSE LARGER CITIES HAVE BOTH.

SO YOU TAKE FRISCO, YOU TAKE MCKINNEY, THEY HAVE A TYPE A AND THEY HAVE A TYPE B, WE DID NOT WE VOTED IN A TYPE A BACK IN 1989. THERE WASN'T THE TYPE B AT THAT TIME.

A LOT OF THESE COMMUNITIES THOSE NEWER BIG COMMUNITIES LIKE MCKINNEY AND FRISCO THEY YOU KNOW, THEY WERE A THOUSAND PEOPLE IN 1990 SO THEY CREATED THE TYPE A AND TYPE B.

NOW, THERE ARE WAYS FOR TYPE A CORPORATIONS TO DO TYPE B PROJECTS.

YOU HAVE TO GO TO A VOTE WITH THAT, AND SO IF THE RIGHT PROJECT CAME ALONG, THEN YOU COULD USE TYPE B MONEY.

I WILL TELL YOU, SOME CITIES HAVE DONE THAT AND IT HAS BEEN DETRIMENTAL DETRIMENTAL TO WHAT THEY'RE DOING AS FAR AS DEVELOPMENT.

THANK YOU. IS IT OKAY IF I SHARE JUST AN EXPERIENCE AS WELL? AND I THINK SOMETHING THAT WOULD BE ON THE DIFFERENCE BETWEEN THE TYPE A AND THE TYPE B, IF YOU LOOK AT THE INVESTMENTS THAT AND THE AMOUNT OF REAL ESTATE THAT HAS BEEN BUILT IN OUR COMMUNITY.

THROUGH THE INVESTMENT IN THESE COMPANIES AND WE DO ABATEMENTS.

YOU'RE HEAVILY INVOLVED IN THE ABATEMENT PROCESS AS WELL AS THE AEDC, WORKING WITH THE CITY, AND THE BEAUTIFUL PART ABOUT THOSE INVESTMENTS IS AS THEY ROLL OFF, THIS CREATES LONG TERM TAX BASIS FOR THAT FUNDS OUR SCHOOLS AND FUNDS OUR COMMUNITY AND THAT'S WHERE AN INVESTMENT IN A PUBLIC.

PROPERTY OR ACTION THAT DOES NOT CREATE A LONG TERM TAXABLE BASE.

NOW, IF THAT INVESTMENT IS IN SOMETHING THAT CREATES REVENUE FOR THE CITY OR CREATES.

GENERATES OPPORTUNITY IN THE CITY, THEN I THINK THAT'S A GREAT DISCUSSION TO HAVE AND TO CONVINCE OUR CITIZENS THAT WOULD BE A WORTHY INVESTMENT BECAUSE IT IS SOMETHING THAT PROVIDES A LONG TERM RETURN AND IT'S SOMETHING THAT YOU CAN PROVE, BUT THAT'S THE DIFFERENCE. I BELIEVE THAT AN A AND A B AND THE BENEFIT WE CAN GO IN HERE AND LOOK AT THE TAX BASE THAT HAS BEEN BUILT BY THE FUNDS THAT HAVE BEEN DEPLOYED BY THE AEDC AND WE'RE RECEIVING THOSE OVER EVERY YEAR UNTIL THOSE THOSE PROPERTIES HAVE NO VALUE.

KEVIN, WE BROUGHT THIS UP IN A PREVIOUS MEETING, SO I'M JUST CURIOUS IF ANYTHING HAS COME UP OF IT.

SO WE HAVE 160 MILLION IN FUTURE OBLIGATIONS? THAT'S CORRECT. YES, SIR.

ABOUT 30 MILLION IN DEBT.

33 MILLION IN DEBT.

THAT'S PART OF THOSE FUTURE COMMITMENTS, TOO, THOUGH.

OH, THAT'S PART OF IT.

SO IT'S A TOTAL 160.

THAT'S CORRECT. TOTAL 160.

OKAY. HAVE WE LOOKED AT ANY MORE ON WHERE THAT THRESHOLD IS TO WHERE WE'RE LIKE, WHOA, WE GOT TO WE GOT TO BE CAREFUL TO MAYOR'S POINT BEFORE OF IF THE IDEAL BIG ONE COMES IN AND WE NEED SOME MONEY.

LIKE, DO WE KNOW WHERE WE ARE ON THAT THRESHOLD FINANCIALLY? BASICALLY DEBT TO INCOME RATIO.

I MEAN, WHERE ARE WE? I MEAN, CAN LIKE, WHERE ARE WE ON THAT SPECTRUM? SO ON THE YOU KNOW, OF COURSE, DEBT TO INCOME, YOU'RE PROBABLY AT 1 TO 6 RIGHT NOW.

IF WE'RE COLLECTING 25 AND WE'VE GOT $150 MILLION, IF YOU WANT TO GO TO DEBT, IF YOU WANT TO GO DEBT TO YOU KNOW WHAT WE HAVE IN THE BANK, YOU'RE PROBABLY AT TWO AND ONE HALF TO ONE, AND SO NOT TOO BAD OF RATIOS THERE.

CERTAINLY WE WOULD WANT TO BE CAUTIOUS IF THAT NUMBER GOT OVER 250 OR 300 MILLION.

WE CERTAINLY WANT TO BE CAUTIOUS UNLESS THAT SALES TAX IS DOUBLED.

WE'D CERTAINLY I DON'T KNOW THAT WE'VE EVER PUT THAT NUMBER TOGETHER.

I THINK WE'VE JUST LOOKED AT THAT ON A CASE BY CASE BASIS, BUT WE'VE JUST NOT EVER WE'VE BEEN LUCKY ENOUGH TO NOT EVER BE THERE.

I MEAN, IS THAT SOMETHING, IN YOUR OPINION, THAT MAYBE WE NEED TO LOOK AT TO SAY, HEY, WE GOT TO KNOW SO THAT WE GOT TO KNOW SO WE KNOW, RIGHT.

SO THAT IF SOMETHING DOES COME IN THAT COMES INTO A FACTOR OF.

I THINK THAT WOULD YEAH, I THINK THAT OBVIOUSLY IF YOU ALL TELL US, HEY, HERE, WE DON'T WANT TO BE OVER THIS NUMBER, THAT'S THE DIRECTION THAT WE'RE GOING TO TAKE.

[03:25:05]

WE'VE GOT TO TAKE DIRECTION FROM THE BOARD AND FROM YOU ALL AS WELL ON WHAT THAT NUMBER LOOKS LIKE IF YOU ALL DON'T WANT TO GO OVER I MEAN, I DON'T KNOW, JUST USING 10 TO 1.

IF YOU DON'T WANT TO GO OVER A 10 TO 1 DEBT TO REVENUE, DEBT TO INCOME, I MEAN THAT'D BE THE $250 MILLION NUMBER IF YOU DIDN'T WANT TO GO OVER THAT OR IF IT'S 12 TO 1 OR 8 TO 1 OR WHATEVER, I THINK WE WOULD NEED SOME DIRECTION AS TO WHAT THAT NUMBER WOULD BE OBVIOUSLY THAT'S WOULD BE AN INTERPRETATION NUMBER AS TO WHERE YOU FEEL COMFORTABLE VERSUS WHERE COUNCIL MEMBER SIMPSON OR SCHERLEN MAY FEEL DIFFERENTLY.

I THINK WE JUST HAVE TO ALL AGREE ON WHAT THAT NUMBER IS AND WE'D CERTAINLY TAKE THAT DIRECTION.

SO DO YOU ALL HAVE A FINANCE WHO'S WHO'S THE FINANCE GUY, ANYBODY.

WE HAVE SOMEBODY ON STAFF.

I MEAN, DOUG HAS DONE THAT FOR YEARS, BUT THE CITY HANDLES OUR FINANCIAL PIECE AND SO WE CALL ON THEM AND I'LL THROW THAT OUT THERE.

I'VE TALKED TO MAYOR STANLEY THAT NUMBER IS $3,000 A MONTH.

THAT'S A PRETTY DADGUM GOOD BARGAIN FOR US THAT NUMBER PROBABLY NEEDS TO GET BIGGER BECAUSE OF THE SERVICE THAT THEY PROVIDE.

I MEAN, THEY DO A TREMENDOUS JOB, MATT AND NICOLE, THAT ARE OVER KIND OF IN THE CORNER OVER THERE.

THEY DO A TREMENDOUS JOB FOR US, AND SO WE'RE VERY APPRECIATIVE, AND SO WE DON'T HAVE TO HAVE EVEN THOUGH DOUG HAS THAT BACKGROUND, THAT'S NOT WHAT HE DOES ON A DAILY BASIS, AND JUST TO HIGHLIGHT THAT, YOU KNOW.

WE MIGHT NOT HAVE A STANDARD PROCEDURE ON THAT, BUT IT IS SOMETHING WE TALK ABOUT EVERY MEETING OF WHERE WE ARE.

[INAUDIBLE] FOR THIS PROJECT OR THAT.

I MEAN, WHERE ARE WE LOOKING AT THE FUTURE? WE'RE ALWAYS TALKING ABOUT THE LAND ISSUES THAT EVERYTHING THAT COMES UP, WE JUST DON'T HAVE A FORMALIZED POLICY, WHICH WE WOULD DEFINITELY WELCOME, BUT WE'RE BASED ON OUR EXPERIENCES AS FINANCE AND WE'RE ALL BUSINESS OWNERS.

I HAVE AN MBA IN ACCOUNTING AND FINANCE, SO WE GET THAT ASPECT OF IT AND WE'RE.

WHAT WE'RE ALWAYS LOOKING AT IS WHEN WE GET IF WE GOT THE BIG ONE, OR IS IT IF YOU GOT.

LIKE WHAT WE'VE HAD THE PAST YEAR.

THREE LARGE ONES DOESN'T NEED TO BE JUST THE BIG ONE EITHER.

SO AND THAT WOULD BE MY CONCERN IS THAT WE COULD GET OVERLY AGGRESSIVE BECAUSE IT'S A GOOD THING WE'RE GOING TO BRING THESE PEOPLE IN.

THESE TWO SMALL ONES, WHATEVER, AND THEN IT PUTS US IN A POSITION WHERE WE'RE LIKE, WHOA, THIS WAS A GREAT THING, AND WE WENT OUT AND GOT THESE BUSINESSES TO COME HERE.

BUT NOW WE'VE HAMSTRUNG OURSELVES TO.

YEAH, AND I WOULD SAY WHAT THIS TEAM HAS DONE IS NOW CREATED A POSITION THAT AEDC IS NOW IN A POSITION TO BE MORE SELECTIVE AND IT'S WITH WHAT THEY'VE DONE THAT NOW WE ARE ABLE TO NOT ONLY ARE WE CAN WE TURN PEOPLE DOWN NOW, WHICH IN THE PAST WE WOULD NEVER DO THAT, BUT WE'RE NOW IN A POSITION WHERE AMARILLO IS ON THE MAP AND WE ARE SOUGHT AFTER FOR WHAT THIS TEAM HAS DONE, AND I THINK THAT GOES BACK TO WHAT ANDREW AND OUR TEAM ARE GOING TO WORK ON IS TIGHTENING UP THOSE INCENTIVE GUIDELINES BECAUSE Y'ALL'S DIRECTION WE'VE TALKED ABOUT IT.

LET'S TIGHTEN UP THE THRESHOLDS THAT PEOPLE HAVE GOT TO MAKE TO GET INCENTIVES BECAUSE WE'RE ON THE MAP.

I MEAN, JUST JUST TO ANDREW'S POINT, SO I WOULD SPEAK TO AS I CAME ON TO THE COUNCIL, MY FIRST VOTE WAS FOR THE TEXAS TECH VET SCHOOL, AND THAT WAS A MONSTER COMMITMENT FOR OUR COMMUNITY TO MAKE THAT HAPPEN, AND THE IT REALLY WAS STRETCHING OUR CAPABILITIES.

IF YOU GO BACK AND LOOK AT THE ANNUAL INCOME THAT WE HAD, IT WAS 9 MILLION, ALMOST 9 MILLION LESS THAN WHAT IT IS TODAY.

IT WAS IT WAS A BIG COMMITMENT, AND SO THAT CONVERSATION WAS VERY DYNAMIC, PART OF THAT INCENTIVE.

THE SECOND THING WAS, AND TODAY, NOW WE'RE EARNING INVESTMENT INCOME, A REALLY NICE INVESTMENT INCOME THAT FOR A LONG TIME IT WAS LESS THAN HALF A PERCENT AND NOW IT'S SOME OF THEM ARE APPROACHING 5%.

AND SO WHEN DO YOU DEPLOY CASH AND WHEN DO YOU USE DEBT? BECAUSE NOW THE SAME THING HAPPENED.

OUR DEBT WAS VERY, VERY LOW COST.

IT WAS BASICALLY FREE MONEY, AND SO THERE'S A LOT MORE DYNAMICS IN THE ENVIRONMENT AND THE COST OF CAPITAL THAT WE HAVE TODAY THAT GOING DOWN THE PATH THAT YOU'RE ASKING, I THINK IS IS VERY GOOD WISDOM, AND I THINK THAT WOULD BE VERY BENEFICIAL.

WE APPRECIATE THAT YOU GUYS SEE IT THAT WAY AND THAT YOU'RE EQUALLY CONCERNED, AND THAT GIVES US COMFORT IN KNOWING THAT YOU ARE WORKING THROUGH THAT ON A A MEETING BY MEETING BASIS. IT'S NOT SOMETHING WHERE WE JUST HADN'T LOOKED AT IT IN A COUPLE OF YEARS AND OUR SALES FORCE IS OUTSELLING OUR PRODUCTION FORCE AND SO WE HAVE OTHER FACTORS

[03:30:02]

SO IT IS A PROSPERITY GROWTH THAT YOU GUYS ARE LOOKING AT.

WE'RE LOOKING AT IT THE SAME WAY.

IT WOULD BE NICE TO GET A RECOMMENDATION FROM FROM YOUR BOARD AND FROM YOU GUYS ON A DEBT TO REVENUE RATIO, I THINK IS THE RIGHT WAY TO SAY THAT.

SO IF THAT'S A 10 TO 1, 12 TO 1, WHAT IS THAT RECOMMENDED FROM YOU GUYS? AND THEN WE'D LOVE TO PARTICIPATE BACK.

AND HEY, THAT'S KIND OF WHAT WE WERE THINKING OR WOW, THAT'S AGGRESSIVE, YOU KNOW? SO IF YOU COULD BRING THAT TO US.

KEVIN IT SURE SOUNDS LIKE YOU WANT TO MAKE A RECOMMENDATION OR YOU HAVE SOME COMFORT IN, IN MAYBE WHAT YOUR FISCAL AGENT FEE IS.

I THINK FROM OUR SIDE OF THE BOARD, WE'RE WORKING REALLY HARD, EVEN $10,000 AT A TIME TO MAKE SURE THAT WE'RE [INAUDIBLE] EVERYTHING THAT WE CAN WHERE WE CAN, AND SO, YEAH, IF THAT IF THAT NUMBER CAN GO FROM $3,000 A MONTH TO WHAT SOUNDS LIKE FOR THE HE ENTITIES THAT YOU'RE RUNNING I MEAN COULD EASILY BE DOUBLE THAT IF YOU WERE TO, TO OUTSOURCE IT, AND SO I THINK ABSOLUTELY IF THAT'S SOMETHING THAT YOUR BOARD WOULD RECOMMEND, WE WOULD WE WOULD OBVIOUSLY ENTERTAIN THAT.

WE'RE NOT ASKING FOR THAT.

I THINK WE WE'VE BEEN WORKING WITH YOU.

WE'RE COMFORTABLE TO STAY THERE AS A COUNCIL, I'M NOT SURE WHERE STAFF WOULD DIRECT, BUT THAT'S SOMETHING THAT YOU GUYS CAN LOOK AT AND IT PROBABLY HONESTLY DOESN'T HIT YOUR BUDGET THAT HARD, BUT IT STILL IS TRYING TO APPROPRIATE A FAIRNESS ON IF WE'RE WILLING TO CHARGE OUR CUSTOMER A LITTLE BIT MORE ARE WE ALSO WILLING TO BILL OUR OUR OTHER ENTITIES A LITTLE BIT MORE? AND SO IS EVERYTHING FAIR OR ARE WE ALWAYS JUST GOING TO OUR PROPERTY TAX AND JUST.

CONSTANTLY TRYING TO RAISE THOSE TAXES.

SO THE INCENTIVE AGREEMENTS THAT I MOST FAVOR.

I'M PROBABLY 100% WITH LLOYD ON THIS ONE THAT I SEE IT IN THE WAY OF IT'S CYCLICAL, AND SO IF WE CAN DRAW IN WITH WITH, LET'S SAY, ISSUING SOME DEBT FOR INCENTIVES, MAYBE IT'S A CONVEYANCE OF LAND OR MAYBE IT'S SOME INFRASTRUCTURE OR WHATEVER, IF WE CAN TURN THAT INTO A $500 MILLION PROPERTY THAT DIDN'T EXIST BEFORE.

THE ISSUE THAT I'VE HAD IS, IS WE KICK THAT OUT TEN YEARS AND THAT CAN BE DIFFICULT FOR US TO SAY, WELL, WE CAN LIVE ON SALES TAX AS A HEAVY BURDEN HERE WITHOUT DEPENDING ON OUR PROPERTY TAXES AS MUCH.

IT MAKES MORE SENSE IF WE ARE GOING TO BE MORE SELECTIVE.

LET'S SAY THAT WE WERE LOOKING FIVE YEARS FOR AN ABATEMENT, 100% ABATEMENT FOR ANY ENTITY THAT QUALIFIED TO INCENTIVIZE THEM TEN YEARS, BUT THEN TO DROP 10% EVERY YEAR.

THAT BRINGS THAT THE ABILITY TO BRING THAT ON TO THE TAX ROLLS IN IN YEAR TWO, AND THAT'S WHAT WE DID WITH THAT LAST PROJECT, AND I KNOW THAT YOU ALL APPRECIATE THAT BECAUSE EACH ONE OF YOU ALL CAME UP AND SAID, I APPRECIATE YOU STRUCTURING IT THAT WAY.

SO I THINK WE'RE GOING TO LOOK AT MORE OF THOSE THAT WAY.

I APPRECIATE IT AND THINK THAT'S THE RIGHT WAY TO GO IN.

WE WANT TO BE SELECTIVE, BUT THEN AT THE SAME TIME, WE'RE NOT TRYING TO JUST BE SELECTIVE TO WHICH COMPANIES WE'RE TRYING TO ATTRACT.

WE ARE DOING THAT, BUT WE ALSO WANT TO BE A LITTLE SHREWD IN THE WAY IN WHICH WE STILL INCENTIVIZE THESE COMPANIES SO THAT IT DOES COMPETE WITH OTHER CITIES ACROSS THE STATE OF TEXAS.

SO SO I DON'T WANT TO COMPETE LESS.

I JUST WANT TO I JUST WANT TO BE A LITTLE SMARTER IN THE WAY IN WHICH I'M BRINGING THOSE PROPERTIES ONTO MY TAX ROLLS SO THAT WHAT I HEAR FROM OUR MANAGEMENT ASSISTANT CITY MANAGERS, WHICH IS HOW ARE WE GOING TO MAKE IT NEXT YEAR? HOW ARE WE GOING TO HOW ARE WE GOING TO FIX THESE ROADS? YOU KNOW, NOW YOU GOT ALL THESE PEOPLE DRIVING ON THEM, GREAT JOB.

HOW ARE WE GOING TO FIX THEM? YOU KNOW, WE DON'T HAVE A BUDGET FOR THIS.

SO THESE ARE THE THINGS THAT WE NEED, THAT COOPERATIVE UNDERSTANDING WHERE YOU GUYS CAN CAN HELP TWEAK SOME OF THOSE INCENTIVE GUIDELINES.

RAISING THE MINIMUMS IS ANOTHER ONE THAT I THINK IS GOOD.

WHEN WE WERE TALKING ABOUT THE $500,000 BUDGET ITEM, TO ME, THAT'S NOT AN ITEM THAT EVER COMES OUT OF YOUR BUDGET.

IT JUST GIVES YOU SOMETHING THAT'S A LINE ITEM THAT YOU COULD TAP INTO, OR MAYBE YOU DON'T HAVE TO.

SO I'D WANT TO KNOW WHAT'S THE ROI IF YOU HAD THAT $500,000 IN YOUR BORROWING CAPABILITY? LIKE HOW MUCH? WHAT DOES THAT REALLY AFFECT IN YOUR TOTAL BUDGET? IF WE IF WE WERE TO REMOVE THE 500,000, WELL, I MEAN, AS A COUNCIL, IT SOUNDS GOOD FOR US TO BE ABLE TO SAY, HEY, WE EVEN ASKED OUR AEDC TO TAKE $500,000 OFF, 12%.

SO DID THAT HELP US? ONE, DOES IT HURT YOU IN ANY WAY? BECAUSE I DON'T HAVE ANY PROBLEM WITH HAVING OUR STAFF COME AND ASK US ON ANY ITEM OVER $50,000 LIKE YOU WANT TO GO PUT IN A WATER MAIN, LIKE YOU GOT TO

[03:35:08]

HOWEVER, I'M NOT TRYING TO TAKE ANY MONEY OUT OF YOUR BUDGET.

ALL I DID WAS JUST SHIFT IT OVER TO ANOTHER LINE ITEM.

SO, REALLY, ALL WE'RE TALKING ABOUT THERE IS JUST KEEPING EVERYTHING THAT'S CAPITAL OR IMPROVEMENT IN EACH AND EVERY PROJECT RATHER THAN HAVING A FUND FOR IT THAT ALLOWS YOU NOW THAT WOULD BE DIFFERENT IF YOU WERE PRESENTING MAINTENANCE.

SO IF YOU HAD $100,000 WORTH OF MOWING AND WEED EATING AND ICE MELT EVERY YEAR, I WOULD WANT TO KEEP THAT IN YOUR GIVEN BUDGET.

I DON'T TO TRY TO MONITOR THAT, BUT THEN ON A CAPITAL EXPENDITURE I THINK I DO I THINK WE WOULD FEEL BETTER ABOUT THAT IN KIND OF OUR STEWARDSHIP OF YOUR DIRECTIVES.

YEAH, ABSOLUTELY. I WOULDN'T HAVE ANY PROBLEM.

I MEAN, OBVIOUSLY I CAN'T SPEAK FOR THE BOARD, BUT I'M CERTAINLY I'M SURE THAT THEY WOULD TAKE THAT UP.

I MEAN LIKE I SAID, CAN'T SPEAK FOR THEM, BUT.

I THINK IT'S JUST IT'S ALWAYS BEEN IT'S ONE OF THOSE THINGS THAT'S ALWAYS BEEN IN THERE AND CERTAINLY CAN BE ATTACHED TO A PROJECT.

THAT'S WHAT WE DO, BUT IF WE HAVE LET'S SAY WE WANT TO DEVELOP THAT 163 ACRES, WE'LL JUST COME AND ASK AND HEY, THIS IS WHAT WE'RE GOING TO DO.

WE'RE GOING TO DO SOME INFRASTRUCTURE TO HELP THAT PIECE OF PROPERTY AND PROBABLY HAVE SOME SOME ANCILLARY BENEFIT TO THAT SECTION OF TOWN.

SO THAT WOULD THAT WOULD HELP WITH WHAT Y'ALL ARE DOING AS WELL.

SO I SEE NO PROBLEM BRINGING THAT AN ITEM TO Y'ALL COUNCIL.

THAT WAY Y'ALL CAN SEE ME MORE OFTEN.

THE COMMUNICATION PIECE.

ALSO, WE DO ENJOY SEEING YOU, BUT THE COMMUNICATION PIECE ALSO HELPS IN THE WAY OF IF FOR SOME REASON WE WERE GOING TO GO FIX A POTHOLE OR FIX A ROAD, YOU'RE NOT RUNNING OUT THERE ON A WATER LINE THAT WE DIDN'T KNOW ABOUT, AND HERE WE ARE DIGGING UP A ROAD THAT WE JUST REPAIRED.

SO I AM ALWAYS LEARNING AND BEING EDUCATED.

SO I APPRECIATE STAFF FOR LOOKING OUT FOR ME.

THE WAY IN WHICH WE CHARGE THE AEDC FOR THE ADMINISTRATIVE AND FINANCIAL IS THE SAME ALLOCATION PLAN THAT WE USE ON ALL OUR GRANTS DEPARTMENTS AND OUR PIDS SO COULD CAUSE AN ISSUE IF IT'S NOT STRAIGHT ACROSS THE BOARD.

SO LET ME BACK AWAY FROM THAT JUST A LITTLE BIT.

I'M HEARING YOU AND WHAT I'M TRYING TO DO, WHICH IS MAKE SURE MY REVENUES ARE CORRECT.

I DON'T KNOW THAT I CAN TREAT YOU OR SHOULD TREAT YOU ANY DIFFERENT THAN ANY OTHER ENTITY.

SO LET'S GET STAFF INVOLVED IN THAT.

MAYBE LET OUR STAFF SPEAK WITH YOU LATER AND YOU COULD DEFINITELY DO IT A DIFFERENT WAY.

I'VE SEEN IT IN OTHER COMMUNITIES WHERE THEY DO SORT OF LIKE WHAT I WAS TALKING ABOUT WITH THE CHAMBER WHERE YOU DO A FEE FOR SERVICE AND YOU JUST MAKE IT A FLAT AMOUNT, OKAY? AND SO THEN YOU COULD JUST DO IT BY THE YEAR.

I MEAN, INSTEAD OF US PAYING IT MONTHLY, YOU JUST PAY IT BY THE YEAR AND JUST MAKE IT A FLAT FEE AND MAKE IT A FEE FOR SERVICE, AND THAT WAY YOU'RE NOT AND THEN YOU'RE NOT DIFFERENTIATING BECAUSE WE WOULD BE SORT OF A SEPARATE IT WOULD BE A SEPARATE AGREEMENT.

THAT'S NOT LIKE THOSE OTHER ENTITIES WHERE THEY WOULDN'T BE TIED TO THAT PERCENTAGE, AND ALONG THAT LINE, BECAUSE WE HAVE VARIOUS AGREEMENTS FOR FISCAL AGENT SERVICES. BUT WE HAVE DONE SOMETHING SIMILAR, I THINK, TO WHAT KEVIN'S SPEAKING TO WITH MAYBE ANOTHER ENTITY THAT HAS LIKE A CPI GROWTH FACTOR INVOLVED WITH IT OR SOMETHING, OR AFTER A PERIOD OF TIME IT COULD BE RELOOKED AT OR RENEGOTIATED.

SO SOMETHING TO THINK ABOUT, BUT KEVIN AND I CAN CERTAINLY DISCUSS AND MAYBE YOU GUYS JUST LOOK AT WHAT'S THE RIGHT OPTION AND MECHANISM THERE, AND THEN IF YOUR BOARD LIKES IT, THEN WE'RE GOOD WITH IT, AND THEN NOT TO STOP THE QUESTIONS, WE CAN STILL CONTINUE, BUT ONCE AGAIN, I THINK THAT'S MY LIST, AND I JUST WANT TO SAY I APPRECIATE THIS DIALOG AND LIKE I SAID, WE'RE LEARNING, AND SO A LITTLE HERE, A LITTLE THERE ADDS UP A LONG WAYS, AND OUR OVERALL CONCERN IS SUSTAINABILITY. I THINK IT IS BECAUSE YOU'VE DONE SUCH A JOB IN THE LAST TWO YEARS REALLY, AND I KNOW IT'S PROBABLY BEEN FIVE YEARS OF SEEDING AND WORKING FOR US TO SEE THE LAST TWO YEARS, BUT BASED ON THAT, WE'RE GOOD BUSINESS PEOPLE TOO.

SO WE'RE A LITTLE CONCERNED, LIKE, ARE YOU OUTPACING US? AND THAT'S A GOOD CONCERN TO HAVE AND WE LIKE THAT YOU'RE CREATING THAT PROBLEM.

WE WANT TO MAKE SURE THAT YOU CONTINUE TO DO THIS, BUT THAT WE'RE GOING TO KEEP UP.

SO ANOTHER QUESTION, SIR.

YEAH. KIND OF LOOKING TO THE FUTURE, LLOYD, I THINK YOU'RE ROLLING OFF THE BOARD AT THE END OF THIS YEAR AND I WOULD BE INTERESTED IN HEARING FROM MAYBE BOTH YOU AND ANDREW.

WHAT ARE THE TOP THREE THINGS AS WE LOOK FOR YOUR REPLACEMENT? WHAT ARE THE TOP THREE THINGS THAT THIS COUNCIL SHOULD BE LOOKING FOR WHEN WE'RE LOOKING TO REPLACE YOU? YOU'RE IRREPLACEABLE. I KNOW, BUT JUST WHAT A GREAT QUESTION I WOULD SAY KIND OF PEOPLE THAT EITHER THEY HAVE A STRONG FINANCIAL BACKGROUND, STRONG THEY'VE BUILT COMPANIES.

[03:40:05]

EVERY DEAL IS DIFFERENT.

SO YOU'VE GOT TO HAVE THERE'S LOTS OF DIFFERENT PLAYERS IN THIS.

SO HOW DO YOU HAVE THOSE PEOPLE THAT CAN THINK? UPPER LEVEL LONG TERM PICTURES, BUT ALSO SOLVE THOSE THOSE.

THOSE ISSUES THAT COME UP RIGHT THEN AND THEN JUST THAT HAVE THAT AREN'T THAT ARE WILLING TO ASK THE HARD QUESTIONS AS WELL.

SO OUR JOB IS TO MAKE SURE THE TEAM'S DOING A GOOD JOB, BUT SOMETIMES WE HAVE TO ASK THE QUESTIONS OF LIKE, IS THIS WHAT'S PART OF OUR MISSION? SO JUST THE PEOPLE IN THE COMMUNITY THAT LOVE THIS PLACE, WE WANT TO GROW IT.

WE WANT OUR I WANT MY KIDS TO COME BACK.

WHAT CAN I DO LONG TERM TO MAKE SURE THEY HAVE A CHOICE TO NOW THEY DON'T WANT TO LEAVE, BUT THEY HAVE A CHOICE TO THAT THERE ARE JOBS.

THERE ARE INDUSTRIES THAT EXCITE THEM AND THAT'S OUR JOB IS TO DIVERSIFY THIS PLACE SO THAT PEOPLE AT LEAST SAY, WELL, I CAN, I KNOW I CAN.

I CAN LIVE HERE AND I'LL BE VERY HAPPY HERE.

SO THAT'S KIND OF MY TAKE ON JUST PEOPLE THAT ARE REALLY LOVE THIS COMMUNITY BUT KNOW HOW TO THINK DIFFERENTLY.

WE HAVE I HAVE A REAL ESTATE BACKGROUND, SO THAT HELPS.

LLOYD'S BUILT THIS GREAT COMPANY AND SEEING THE CHALLENGES AND THE GREAT THINGS THAT WE MESH TOGETHER, IT CREATES A GREAT BOARD TO HELP SUPPORT THE TEAM THAT'S BEEN CREATED.

I THINK A PERSON THAT IS COLLABORATIVE IN SPIRIT AND THAT LOOKS FOR.

SOLUTIONS TO THE CHALLENGES THAT WE HAVE IN OUR COMMUNITY.

THAT IS REALLY FOCUSED ON BEING.

THAT WE'RE ONE COMMUNITY.

WE'RE NOT ENTITIES BATTLING EACH OTHER I WANT TO SAY ONE OF THE GREATEST TRANSITIONS SINCE KEVIN CAME ON VERSUS THE WAY THAT THE AEDC WAS MANAGED BEFORE IS THE COLLABORATIVE NATURE BETWEEN THE CITY OF AMARILLO AND THE AEDC.

IT'S NOT. IT WAS COMBATIVE AT ONE POINT, AND I BELIEVE THAT'S ALSO BASED ON THE BOARD.

THE WAY THAT IT'S COME TOGETHER.

SO WE'RE THAT WOULD THE HEART OF COLLABORATION PROBLEM SOLVING AND.

I WOULD HAVING SOMEBODY THAT HAS CONTINUITY ON THE BOARD, THE WAY THE TERMS ROLL OFF, SOMEBODY THAT'S WILLING TO PUT IN SIX YEARS, I THINK WOULD BE IMPORTANT AS WELL, BECAUSE HAVING THE CONTINUITY OF LEARNING, IT'S AS YOU CAN SEE, IT'S DYNAMIC.

IT PALES IN COMPARISON TO WHAT YOU GUYS ARE DRINKING RIGHT NOW AND HAVING TO LEARN, BUT IT IS IT IS VERY, VERY SIGNIFICANT, AND SO THAT WOULD BE THE NATURE OF THE PERSON.

JUST TO JUST TO COMMENT ON THAT, BUT I WILL SAY, THIS IS MY FOURTH YEAR.

I THINK WE HAVEN'T GOT TO HAVE THIS CONVERSATION IN THIS SETTING BEFORE.

SO I REALLY VALUE THIS AND IT ALLOWS US TO GET TOGETHER, AND WE HAVEN'T HAD WE HAVEN'T GOTTEN TO DO THIS SINCE I'VE BEEN HERE.

SO JUST THANK YOU ALL FOR ALLOWING US TO COME HERE AND WE WORK IT OUT TOGETHER.

YEAH, ABSOLUTELY. YEAH.

OKAY, I'VE GOT A QUESTION FOR YOUR MARKETING BUDGET.

YOU SAID Y'ALL REALLY DON'T USE IT.

YOU CAN GO UP TO TWO AND ONE HALF PERCENT, RIGHT? WHICH IS QUITE A BIT.

IS THAT RIGHT? SAY THAT AGAIN WE CAN GO UP TO 10%, SO WE COULD GO TO 2.4 MILLION, BUT I THINK THAT I MEAN, WE WANT TO I MEAN, WE WANT TO BE GOOD STEWARDS OF THE MONEY, AND SO THAT'S TRADITIONALLY THAT'S BEFORE I GOT HERE, WE WERE BEING GOOD STEWARDS OF THE MONEY AND WE WANT TO CONTINUE THAT IN THERE.

WE DON'T WANT TO USE ALL 2.5 MILLION BECAUSE I CAN SHOW YOU SOME BUDGETS BECAUSE I'VE GOT THEM PULLED FROM SOME OF OUR OTHER CITIES THAT BUDGET, THE WHOLE 10% AND TRAVEL ON TOP OF THAT, AND WE TRY TO BE WE WANT TO BE GOOD STEWARDS BECAUSE THAT'S THE RIGHT THING TO DO.

THAT'S GREAT.

SO I'VE TALKED BEFORE.

I THINK EARLY ON WE TALKED ABOUT LIKE WHEN YOU BRING PEOPLE IN AMARILLO LOOK AT IT DRIVING IN, YOU'RE KIND OF LIKE SOMETIMES IT'S NOT ALWAYS THE GREATEST ROUTE FROM THE AIRPORT IN, AND JUST BECAUSE I DON'T KNOW ON THE ADVERTISING AS FAR AS LIKE A GATEWAY TO AMARILLO, IS THAT SOMETHING THAT YOU GUYS COULD PARTICIPATE IN ON THE MARKETING SIDE? I THINK THAT THERE'S PROBABLY A POSSIBLE WAY THAT YOU COULD DO THAT.

WE'D HAVE TO LOOK AT IT, BUT I THINK I MEAN, YOU CAN CERTAINLY.

COULD PROBABLY MAKE THAT INTO A MARKETING PIECE BECAUSE IT IS IMPORTANT AS A GATEWAY INTO OUR CITY.

[03:45:05]

I THINK THERE'S A GREAT NEED FOR IT AND I THINK THE CITIZENS WOULD LOVE IT JUST FOR PRIDE OF AMARILLO WHEN WE DO BRING PEOPLE IN, I MEAN, WHEN WE DO USE NOW, WHEN IT COMES TO YOU GUYS, I WOULD SAY YOU ALL'S PART IN IT MAYBE BEING WHEN YOU DO BRING PEOPLE IN.

ABSOLUTELY. I THINK IT IS IMPORTANT YEAH.

THAT WOULD BE BUT THAT YOU KNOW IF THAT'S SOMETHING THAT THE BOARD COULD KICK AROUND AND KIND OF SEE SEE IF WE CAN GET CREATIVE AND MAYBE SEE IF WE COULD DO SOMETHING LIKE THAT.

YEAH, EXACTLY RIGHT.

OKAY. YOU GOT ANYTHING? [INAUDIBLE].

SO JUST SO I'M ON THE SAME PAGE, SO THEY'RE GOING TO BRING SOMETHING BACK TO US WITH ALL OUR RECOMMENDATIONS AND THEN WE'LL GO FROM THERE.

OR IS THIS SO THIS IS THE PROCESS.

THAT'S A GREAT QUESTION. SO THIS IS THE PROCESS.

THE BOARD HAS APPROVED A BUDGET.

SO WE CAN PRESENT THAT BUDGET, OBVIOUSLY, OR YOU ALL CAN MAKE RECOMMENDATIONS TO THE BOARD TO GO BACK AND MAKE CHANGES TO THAT BUDGET.

WE HAVE TO CALL A SPECIAL MEETING FOR THAT BECAUSE IT HAS TO BE POSTED AND THEN WE HAVE TO PUT THAT BACK ON A AGENDA BECAUSE IT'S ON TUESDAY'S AGENDA.

WE WOULD HAVE TO PUT IT ON AN AGENDA FOR CITY COUNCIL AT A LATER DATE.

WITH THOSE RECOMMENDATIONS, AND THEN IF THERE'S A DISCREPANCY IN THOSE RECOMMENDATIONS AND WHAT YOU ALL SEE AND YOU ALL DON'T LIKE THAT, YOU ALL VOTE THAT DOWN, THEN IT HAS TO GO BACK TO THE BOARD WITH A SPECIAL MEETING WITH A THREE DAY POSTING.

IT'S NOT SOMETHING THAT YOU IT'S NOT LIKE ANOTHER DEPARTMENT WHERE YOU CAN JUST SAY, HEY, YOU NEED TO CUT THIS, THIS AND THIS AND THIS.

SO LET'S ASK IF YOU ALL WANT TO.

LLOYD IF YOU'VE GOT ANY, LET ME ASK STAFF TO HELP US ON THE TIMING AND THEN LET ME COME BACK TO THE THINGS THAT I HEARD THAT I WOULD LIKE TO HAVE BROUGHT BACK.

SO GO AHEAD. SO JUST A POINT OF MATTER ON THIS, AND COUNCIL MAY ALREADY REALIZE THIS, BUT THE ACTION THAT WAS TAKEN AT THE LAST COUNCIL MEETING RELATED TO THE AEDC'S BUDGET WAS TO TABLE IT, WHICH AUTOMATICALLY BRINGS IT BACK TO THE NEXT COUNCIL MEETING.

SO THAT'S WHY IT'S COMING UP AGAIN ON TUESDAY'S MEETING.

I'M LOOKING AT BRYAN AND STEPHANIE TO MAKE SURE I'M SAYING THIS CORRECTLY SO IT WILL BE POSTED ON THE AGENDA FOR TUESDAY'S MEETING.

COUNCIL COULD TAKE ACTION AT THAT TIME.

THEY COULD TABLE IT AGAIN, WHICH WOULD AUTOMATICALLY PUSH IT TO THE NEXT MEETING.

OR THEY COULD SAY, WE WANT TO TABLE IT FOR A FUTURE MEETING.

I'M LOOKING AT STEPHANIE HERE.

SHE CAN HELP ME WITH THE LANGUAGE.

YES, YOU CAN TABLE IT, WHICH WOULD BRING IT BACK TO THE NEXT REGULAR MEETING.

YOU COULD PUSH TO A FUTURE MEETING, BRING IT BACK WHENEVER YOU WANT TO, OR YOU COULD APPROVE IT.

THE ONE THAT WILL BE ON THE AGENDA FOR TUESDAY WILL BE THE ONE THAT THE BOARD HAS APPROVED AT THIS TIME, AND THEN AS JUST A REMINDER, SO OUR LAST MEETING, SCHEDULED MEETING IN AUGUST IS THIS COMING TUESDAY, WHICH IS THE 15TH.

WE HAD REARRANGED AUGUST KIND OF IN PREPARATION OF BUDGET.

SO THEN THE NEXT MEETING WILL BE ON SEPTEMBER 12TH, THEN WE'LL HAVE ONE ON THE 19TH AND THEN WE'LL HAVE ONE THE FOLLOWING TUESDAY, WHICH I'M LOOKING RIGHT NOW, 25TH, MAYBE THE 26TH. SO BUT WE DO HAVE TO HAVE AN APPROVAL BY CITY COUNCIL OF AEDC'S BUDGET BEFORE SEPTEMBER 30TH.

SO THERE'S TECHNICALLY FOUR MORE MEETINGS TO ACT UPON, BUT WE NEED TIME TO TAKE IT BACK TO THE DATES AGAIN.

OKAY. YEAH, AUGUST 15TH AND THEN SEPTEMBER 12TH, SEPTEMBER 19TH AND SEPTEMBER 26TH.

SEPTEMBER 19TH IS ESSENTIALLY A SPECIAL MEETING THAT WE HAVE CALLED TO DO THE SECOND AND FINAL READINGS ON THE CITY'S BUDGET AND PROPERTY TAX RATE AND TO RATIFY THE TAX ROLLS, BUT IT IS A MEETING.

SO AS IT RELATES TO BUDGET, WE'RE NOT NECESSARILY TALKING ABOUT GUIDELINES OR INCENTIVES.

SO HOPEFULLY YOU'VE HEARD US CLEARLY ON KIND OF WHAT WE'RE LOOKING FOR.

INFRASTRUCTURE TOWARDS GROWTH IS ALWAYS A GREAT COLLABORATION WHERE WE CAN OVERLAY SOME STUFF TOGETHER.

WE LIKE THAT THE 10% REDUCTION IN ABATEMENT.

YOU'VE HEARD US SAY THAT, THAT'S A GOOD DIRECTION FOR US.

I THINK IF WE ARE LOOKING BUDGET, I WOULD ASK COUNCIL, DO YOU FEEL LIKE IT'S WORTH NOT VOTING ON IT THIS TUESDAY AND ALLOWING THEM TO BRING IT BACK IN SEPTEMBER FOR TWO MAIN ITEMS THAT I HEARD.

ONE IS A REMOVAL OF THE $500,000 BUDGET ITEM.

THAT'S FOR POTENTIAL CAPEX OR CIP.

THE OTHER ONE WOULD BE THE ENTERPRISE CHALLENGE WE DIDN'T USE THE 500.

DOES IT HELP US TO NOT EARMARK 500?

[03:50:01]

OKAY. ANYBODY ELSE? I'D RATHER WAIT. OKAY.

SO JUST ONE MORE TIME, MAKE SURE THE ENTERPRISE CHALLENGE IS SOMETHING WE WANT THEM TO LOOK AT AS POSSIBLY REDUCING OR ELIMINATING.

WHAT I HEARD WAS THAT SO LIKE AND I DIDN'T HEAR ELIMINATING.

SO I THINK WE DID ASK LIKE, WHAT DOES THAT DO? I FELT LIKE WE HAD A PRETTY GOOD DISCUSSION ON SOME OF THE RETURNS THAT WE'RE GETTING ON THAT.

SO I'M NOT IN A POSITION WHERE I WOULD ASK YOU TO BRING BACK AN ELIMINATION OF THE ENTERPRISE CHALLENGE.

DOES COUNCIL AS A WHOLE FEEL LIKE THAT'S SOMETHING THAT YOU GUYS WANT TO TOTALLY MOVE THAT MONEY OUT OF BECAUSE IF NOT, THEN THEN I WOULD ASK FOR YOU GUYS TO BRING US BACK A RECOMMENDED NUMBER.

NOW YOU CAN BRING BACK THE NUMBER OF 500 OR 580 AGAIN, IF IT'S STILL YOUR RECOMMENDATION, WE WANT TO HEAR IT.

IT'S NOT GOING TO HIT YOUR OTHER SIDE OF YOUR LEDGER VERY HARD.

WHAT IT REALLY COMES DOWN TO IS, DID WE JUST DESIGN OUR BUDGET THAT ACTUALLY FITS OUR NEEDS, WHICH IS A LOT LIKE WHAT I FEEL LIKE THIS CIP LINE ITEM IS DOING AS WELL.

YEAH, WELL, I MEAN, I'D LIKE TO HEAR, I THINK EVALUATE IT.

COME BACK TO US IF YOU THINK IT'S AND TELL US WHAT YOU THINK IT WE SHOULD HAVE AND YOU SHOULD HAVE IN THE BUDGET FOR IT AND THEN WE CAN HEAR THEIR EXPLANATIONS AND REASON.

DO YOU WANT US TO WORK OUT THE FISCAL AGENT FEE BEFORE THEN AND PRESENT THAT AS WELL? IF WE CAN GET THAT WORKED OUT, IF LAURA AND I CAN GET SOMETHING WORKED OUT, THAT WOULD PROBABLY BE A LITTLE BIT OF AN INCREASE ON THAT ON THE OPERATION SIDE IF WE IF WE WENT TO, LET'S SAY $75,000 A YEAR OR WHATEVER, IT WOULD ADD TO THAT SIDE.

SO THAT WOULD BE A LINE ITEM SIDE, THERE WOULD BE AN INCREASE TO THAT.

I THINK IT'S GOOD TO LOOK AT THAT, BUT THEN I THINK IT'S GOOD TO WEIGH THAT AGAINST LIKE, HOW ARE WE TREATING THE REST OF OUR CUSTOMERS? OKAY. YEAH, AND WHAT SETS YOU APART? SO. YES, SIR.

DID I MISS ANYTHING ON MY NOTE TAKING OF WHAT YOU GUYS HEARD? WAS THERE ANYTHING ELSE THAT YOU HEARD THAT WAS BUDGET RELATED THAT YOU WOULD LIKE TO WORK ON KNOWING THAT YOU GOT A FEW WEEKS? I THINK THE ONE THING THAT I HEARD IS AND THIS IS FROM COUNCILMAN SIMPSON IS OUR BUDGET HAS BEEN THE SAME. WHAT PERCENTAGE OF THAT EVERY YEAR HAVE WE USED? AND IF WE HAVEN'T HIT 100% OR WE'RE AT 75%, WHY DON'T WE BUDGET FOR WHAT WE'VE WHAT HISTORICALLY HAS BEEN THAT NUMBER? SO I THINK THAT'S ONE OF THE THINGS I TOOK AWAY IS, LET'S SEE, LET'S JUST HAVE A PLACEHOLDER.

IF WE'RE SPENDING IT AND WE KNOW WHAT WE'RE GOING TO BE SPENDING IT ON, LET'S LOOK AT THAT, AND SO THAT'S WHAT I HEARD.

THAT IS ONE OF OUR CHARGES, AND I THINK WE CAN HELP WITH THAT AS WELL TO BRING SOME INFORMATION BACK IN A MORE SIMILAR FORMAT TO WHAT WE'VE PRESENTED TO YOU ALL ON THE CITY'S BUDGET.

SO I THINK WE CAN WORK THROUGH THAT FOR THE FUTURE MEETING AS WELL, AND I CAN, WE'VE BEEN WORKING WITH COUNCIL MEMBER TIPPS ON GATEWAYS, SO WE HAVE SOME ESTIMATED COSTS, SO I COULD PROVIDE THAT TO YOU ALL TO BRAINSTORM AS YOU ALL SEE IF IT'S SOMETHING YOU ALL CAN EVEN PARTICIPATE IN AND JUST SOMETHING TO CONSIDER.

I THINK WE WOULD PROBABLY WANT TO CONSIDER THAT LIKE A MARKETING PROJECT AND PROBABLY BRING THAT TO YOU ALL, LIKE WE WOULD SAY AN INFRASTRUCTURE OR SOMETHING.

OKAY. SO I KNOW WE'RE ALREADY 12:15.

DO YOU HAVE EVERYTHING YOU NEED FROM US? I THINK WE HAVE WHAT WE NEED FROM YOU GUYS.

YES, SIR. OKAY.

ONCE AGAIN, REALLY APPRECIATE YOUR TIME HERE TODAY.

I DO KNOW THAT THERE'S A BOX LUNCH BACK HERE FOR STAFF AND COUNCIL, I BELIEVE.

WE'RE ONLY GOING TO TAKE ABOUT A 15 MINUTE BREAK.

WE'RE GOING TO BE DONE BY.

I'M GOING TO SAY 1:45.

WE'RE REALLY SAYING 1:30 IS OUR HARD STOP.

SO MAYBE SOMEWHERE IN THERE.

SO IF YOU'RE NOT LEAVING TO GRAB LUNCH, YOU'LL JUST HAVE A LATER LUNCH.

WE'RE NOT STAYING TILL FIVE AND APOLOGIZE.

WE DON'T WE DON'T HAVE ENOUGH TO FEED EVERYBODY IN THE ROOM, BUT, BUT WE ARE GOING TO TAKE A 15 MINUTE BREAK.

DID YOU HAVE SOMETHING ELSE, COUNCILMEN? NO, THANK YOU.

HEY, THANK YOU. APPRECIATE THAT.

APPRECIATE YOU GUYS.

I APPRECIATE WHAT YOU ALL DO REAL QUICK BEFORE ALWAYS HOLLER AT ME IF YOU HAVE QUESTIONS.

[03:55:03]

WHAT DO YOU WANT TO HIT NEXT SO WE'LL KNOW WHO TO TEE UP? PERFECT. I WAS THINKING WE COULD TALK QUICKLY ABOUT SOLID WASTE.

JUST AN UPDATE ON KIND OF THE PROPOSED FEES ON THAT, AND THEN WE COULD GO STRAIGHT INTO STREETS IF THAT'S OKAY.

SO IF WE'LL JUST START WITH THOSE TWO AND SEE HOW QUICKLY WE CAN GET THROUGH THINGS.

WE ARE OUT EARLY AT LIKE 1:30.

SO GRAB YOUR LUNCH, COME BACK 15 MINUTES.

THANK YOU. OKAY.

I THINK WE GOT EVERYBODY HEADING BACK HERE.

WE NEED FLOYD AND A FEW OTHERS, BUT WE'RE GOING TO GO AHEAD AND CALL OURSELVES BACK IN.

IT'S WHAT IS IT, 12:35 OR SO 12:39 SO WE ARE GOING TO GO AHEAD AND START WINDING DOWN THIS CONVERSATION OR THE NEXT CONVERSATION AT 1:30.

WE NEED TO BE OUT OF HERE.

COUNCILMAN. SIMPSON. IF YOU LEFT AT 1:40, THAT GETS YOU WHERE YOU'RE GOING.

OKAY. ALL RIGHT.

SO THANK YOU GUYS FOR BEING HERE.

ARE WE ON TO STREETS? SOLID WASTE. SOLID WASTE? YEP.

SO WE HAVE ALLEN AND HIS TEAM HERE.

WE HAD TWO ITEMS WE WANTED TO FOLLOW UP, I THINK, WITH YOU ALL ON.

ONE WAS LOOKING AT MAYBE A DIFFERENT WAY TO STRUCTURE THE PROPOSED RATE INCREASES THAT WOULD STILL ACHIEVE THE SAME BUDGET RESULTS THAT WE WERE LOOKING FOR AND THE OTHER ONE IS RELATED TO IF WE POTENTIALLY WERE TO TRANSITION OUT OF COMMERCIAL OPERATIONS ALTOGETHER, KIND OF WHAT THAT WOULD LOOK LIKE. SO I'LL HAND IT OVER TO ALAN AND I'LL PROBABLY INTERJECT A LITTLE BIT, BUT AND WE CAN KIND OF GO BACK AND FORTH ON THIS.

GO AHEAD, ALAN. THANKS.

SO WHAT WE HAD PROPOSED WAS TO FUND A 13 YEAR DUMPSTER REPLACEMENT CYCLE REQUIRED ABOUT A $1.4 MILLION REVENUE INCREASE AND WE HAD PROPOSED THAT ABOUT A 9.5% INCREASE TO THE RESIDENTIAL RATE PLUS AN ADDITIONAL 5% JUST FOR GROWTH, BUT THE 9.5% WAS WHAT WAS NEEDED FOR THE DUMPSTER REPLACEMENT PROGRAM, AND SO WE WENT AND LOOKED AT WHAT KIND OF RATE INCREASE IT WOULD TAKE IN COMMERCIAL COLLECTION TO GENERATE THAT SAME $1.4 MILLION AND CAME UP WITH APPROXIMATELY 30% RATE INCREASE IN COMMERCIAL COLLECTION TO GENERATE 1.4 MILLION.

SO IF YOU WANT TO TURN TO PAGE 17, THAT WAS KIND OF THE PROPOSED FEE CHANGES THAT WE HAD ORIGINALLY BROUGHT FORWARD, AND THEN ALAN'S JUST KIND OF TALKING YOU THROUGH SOME OTHER OPTIONS THAT WE COULD LOOK AT.

IT'D BE ABOUT 30% INCREASE IN COMMERCIAL TO GENERATE THE SAME AMOUNT OF REVENUE PLUS 5%.

THAT INCLUDES THE 5% FOR GROWTH.

THAT IS CORRECT. SO WHAT? SORRY, I JUST TOOK A BITE.

WHAT THAT WOULD GET YOU THEN WOULD STILL BE A 5% INCREASE ON YOUR RESIDENTIAL RATE FOR INFLATION COSTS AND SOME OF THOSE ITEMS , AND THEN ON THE COMMERCIAL SIDE, IT'S THE 5% PLUS THE AMOUNT NEEDED TO FULLY FUND THE DUMPSTER REPLACEMENT PROGRAM, AND IT WOULD COME IN AS A TOTAL INCREASE TO COMMERCIAL OF JUST UNDER 30%.

SO WE RAN ONE OTHER SCENARIO.

IF YOU LET'S SAY WE DIDN'T WANT TO DO ANY KIND OF A 5% INCREASE ON THE COMMERCIAL SIDE I'M SORRY, ON THE RESIDENTIAL SIDE, BUT INSTEAD BUILD THAT IN OVER ON COMMERCIAL, YOU'RE LOOKING CLOSER TO ABOUT 43% ON THE COMMERCIAL SIDE AND THEN NO CHANGE ON RESIDENTIAL.

DIDN'T WE DETERMINE OUR COMMERCIAL SIDE WAS CONSIDERABLY CHEAPER? THEN. SOMEBODY ELSE.

WE DIDN'T DETERMINE WHAT THE DIFFERENCE IS.

I STILL DON'T HAVE NUMBERS FOR OTHER COMMERCIAL WASTE HAULERS, BUT WE DO KNOW THAT WE ARE LESS BECAUSE WE'VE BEEN TOLD THAT BY SOME OF OUR CUSTOMERS.

OKAY. SO DO WE HAVE ANY IDEA ABOUT HOW MUCH LESS? I CAN'T SAY NO.

I THINK THAT 25 TO 30% INCREASE, THAT WOULD BE STICKER SHOCK TO SOME PEOPLE AND WE WOULD LOSE SOME CUSTOMERS.

I DON'T KNOW THAT IT WOULDN'T STILL HAVE US BEING COMPETITIVE WITH OTHER VENDORS, BUT NOT KNOWING EXACTLY WHAT THOSE RATES ARE.

I CAN'T SAY FOR CERTAIN.

OKAY. THE LAST SCENARIO WE HAD LOOKED AT, TOO, AND I THINK WE TALKED ABOUT IT TWO WEEKS AGO, BUT WAS WHAT WOULD IT TAKE AS FAR AS A TIPPING FEE INCREASE AT THE LANDFILL TO GENERATE THE SAME $1.4 MILLION? AND THAT'S ABOUT A 50% INCREASE IN THE TIPPING FEE, WHICH THAT WOULD BE THAT WOULD HAVE A MAJOR IMPACT ON THE AMOUNT OF TRAFFIC WE SEE AT THE LANDFILL.

I THINK WE'D SEE QUITE A FEW COMMERCIAL WASTE HAULERS START TAKING THEIR BUSINESS TO REPUBLIC'S LANDFILL IN CANYON.

IF YOU TURN THE PAGE TO PAGE 18, YOU'LL SEE THAT TIPPING FEE, AND AGAIN, WE HAVE JUST A 5% INCREASE PROPOSED ON THAT

[04:00:03]

OKAY. SO I THINK I KIND OF BROUGHT THIS ONE UP JUST IN THE WAY OF LOOKING AT ALL OPTIONS.

SO LET ME. JUST SEE WHAT THE APPETITE IS FOR ANYBODY THE QUESTION WAS RAISED, DO WE DO WE WANT TO REMAIN IN THE COMMERCIAL TRASH BUSINESS WITH ALL OF ITS POTENTIAL ISSUES? AND WOULD WE DO BETTER IF WE FOCUSED ON RESIDENTIAL AND JUST PROVIDED THAT SERVICE AND THEN MAYBE INCREASED OUR LANDFILL FEE? SOME SOLD THE EQUIPMENT ALL OF THOSE EMPLOYEES ARE SOUGHT AFTER.

SO IT'S NOT AN ISSUE OF WELL WE'D HAVE TO REDUCE OUR STAFF.

I MEAN WE NEED THEM IN OTHER AREAS, I'M SURE, AND THEN IF ANYBODY DID MAKE A MOVE, I THINK FOR THE MOST PART THEY'RE WORKING FOR MAYBE A LITTLE BIT LESS FOR US BECAUSE WE HAVE SOME OTHER THINGS THAT WE CAN PROVIDE YOU HAVE SOME HOLIDAYS AND SOME LOWER STRESS, HOPEFULLY THAN YOU WOULD ON A COMMERCIAL HAULER.

SO, I MEAN, WE'RE JUST THROWING ALL OPTIONS OUT THERE.

I'M NOT SAYING ANY OF IT'S A GOOD A GOOD OPTION OR A GOOD DIRECTION, BUT IT'S A CONVERSATION WORTH HAVING.

NOW, IF WE STAY IN THE COMMERCIAL TRASH BUSINESS, THEN WE HAVE MORE OPPORTUNITIES TO BALANCE THE BUDGET ACROSS.

SO MAYBE WE DON'T JUST PUT A HOW MUCH IS THE INCREASE ON THE RESIDENTIAL ONLY FOR THE TRASH CAN REPLACEMENT THE 1.4 MILLION? YEAH, THAT WAS 9.5% RATE INCREASE TO FUND THE DUMPSTER REPLACEMENT PROGRAM IN RESIDENTIAL COLLECTION.

OKAY. SO I DO LIKE THE FACT THAT WE ARE SAYING, HEY, WE WANT TO DO A BETTER JOB, LET'S GET YOU BETTER TRASH CANS.

I HAVE A REALLY HARD TIME WITH SAYING IN ORDER TO DO THAT, I NEED TO CHARGE YOU MORE AFTER I'VE DONE SUCH A DIFFICULT JOB IN THE PREVIOUS YEAR.

SO MY PERFORMANCE IN THE PREVIOUS YEAR IS NOT IDEAL FOR US TO GO TO THOSE CUSTOMERS AND SAY WE NEED WE NEED TO RAISE YOUR RATE AGAIN AND WE WOULD HAVE A VERY SHORT TOLERANCE I THINK, FOR OUR CUSTOMERS ON CONTINUAL LIKE MISHAPS OR ISSUES.

SO LIKE I WOULD THINK WE WOULD WANT TO BE ON TOP OF OUR GAME, ESPECIALLY WITH ANOTHER RATE INCREASE THAT PUTS ALL OF IT ON RESIDENTIAL.

NOW IF WE GO TIPPING FEE, COMMERCIAL RESIDENTIAL, WHICH IN MY MIND IF YOU KEEP COMMERCIAL, YOU HAVE ROOM TO INCREASE, YOU OBVIOUSLY ARE LOWER.

SO I WOULD RATHER TAKE THE BURDEN OFF OF MY RESIDENTIAL RAISE MY PRICES AS MUCH AS I FELT LIKE I COULD ON THE COMMERCIAL SIDE, POTENTIALLY WE'RE GOING TO HAVE THE NEXT ASK WILL BE, WELL, NOW WE HAVE COMMERCIAL STUFF.

WELL, SURE, SURE.

GLAD WE'VE GOT THAT INCREASE ALREADY BRINGING IN ADDITIONAL INCOME ON THAT, AND THEN THE TIPPING FEE THING DO YOU GUYS HAVE ANY RECOMMENDATIONS IN HOW TO BALANCE THAT ACROSS THE BOARD? I THINK THAT BALANCING IS NOT A BAD IDEA.

I THINK THERE STILL WOULD NEED TO BE SOME AMOUNT OF INCREASE IN RESIDENTIAL COLLECTION ABOVE JUST THE 5% FOR GROWTH.

NOW, IT DOESN'T NECESSARILY HAVE TO BE ANOTHER NINE AND A HALF.

I THINK WE COULD GO BACK AND LOOK AT, OKAY, WHAT DOES A LITTLE BIT IN TIPPING FEE, A LITTLE BIT IN COMMERCIAL AND A LITTLE BIT IN RESIDENTIAL ABOVE THE 5% FOR GROWTH? I DON'T THINK THAT'S A BAD IDEA PERSONALLY, BUT WHY ARE WE LOOKING AT JUST A ARE YOU LOOKING AT A 5% ADDITIONAL IN COMMERCIAL OTHER THAN WHAT'S ALREADY PROPOSED? NO. SO WE PROPOSE 5% JUST TO ACCOUNT FOR GROWTH.

COST OF DOING BUSINESS IS MORE FUEL COSTS OR MORE.

WHY NOT? WHY DON'T WE CAPTURE MORE? WELL, THAT'S WHAT WE'RE TALKING ABOUT HERE IS DOING SOME MORE THAN THAT.

THAT'S WHAT HIS QUESTION WAS, ALAN, IN ADDITION TO THE 5%.

YES. PROPOSED HERE, LOOKING AT SPREADING THE 10%, THE 9% OF RESIDENTIAL INTO THE OTHER TWO AREAS.

HEY, ALAN, REDUCING IT, NOT ELIMINATING IT, BUT REDUCING IT FOR RESIDENTIAL, ADDING IT WILL BE ABOVE 5%.

IT'LL GET IT IN A RANGE OF 8 TO 10% PROBABLY.

THAT'S CORRECT, AND THEN PROBABLY THE SAME THING OVER ON THE TIP AND FEES AND THEN WE CAN GET SOME KIND OF BALANCED PROPOSAL AND GET THAT TO YOU AS SOON AS WE CAN GET IT TO YOU.

OKAY. ALAN, I THINK THAT ONE OF THE THINGS THE MAYOR AND MAYOR PARDON ME FOR FEELING LIKE I MIGHT NEED TO TRANSLATE, BUT I THINK ONE OF THE THINGS THE MAYOR IS ASKING IS, CAN WE PROPORTIONALLY DO MORE OF THAT ADDITIONAL INCREASE ON THE COMMERCIAL SIDE THAN ON THE RESIDENTIAL SIDE, PUSHING TOWARDS ONLY THAT MINIMAL INCREASE ON THE ON THE RESIDENTIAL SIDE, NOT TO PUSH THE COST OVER TO THE COMMERCIAL, BUT TO BALANCE OUT OR TO COME SOME DISTANCE TO NARROWING THE GAP BETWEEN US AND OTHER COMMERCIAL HAULERS SO THAT THEY'RE THEY DON'T FEEL DIS-ENFRANCHIZED AND WE'RE REDUCING THE IMPACT ON THE RESIDENTIAL CUSTOMER.

OKAY. IS THAT ACCURATE? SO PROPORTIONALLY DO MORE OF THAT ON THE COMMERCIAL SIDE THAN ON THE RESIDENTIAL SIDE.

[04:05:02]

SO IN THE LANDFIELD, IS THERE A WELL, I WAS GOING TO CALL A TIPPING POINT ON THE TIPPING FEE, BUT THAT WOULD BE A BAD BUT MY POINT IS, I MEAN, THE MORE THAT WE CAN AND I DON'T KNOW THE ECONOMICS OF THIS, SO YOU'LL HAVE TO HELP ME WITH THIS, BUT I'M JUST THINKING THE MORE WE CAN GET OUT OF THE TIPPING FEE, OBVIOUSLY, THE MORE REVENUE THAT WE'VE GOT.

THERE'S ALSO A BALANCE IN IF SOME PEOPLE ARE NOT USING IT, IT JUST SAVES US LONG TERM ON LANDFILL COSTS AND LANDFILL USAGE AND DELAYS MAY BE A CERTAIN NUMBER OF YEARS OF HAVING TO EXPAND THE LANDFILL IS IS RAISING THE RATES NOT ONLY TO GET THE REVENUE BUT TO LESSEN LANDFILL USAGE, SOME POTENTIALLY WITHOUT LOSING A WHOLE LOT OF THE REVENUE.

IS THAT A BAD STRATEGY, A MEDIOCRE STRATEGY, A GREAT STRATEGY OR NO? I DON'T THINK IT'S A BAD STRATEGY, BUT IT IS A BALANCING ACT BECAUSE IF YOU DRIVE IT TOO FAR, YOU GET NO TRAFFIC OR A SIGNIFICANT REDUCTION AND YOU CAN'T EVEN DO THE BASELINE OF OPERATING YOUR LANDFILL.

WE'VE SEEN OVER THE PAST YEAR, I THINK A LITTLE BIT OF A DECREASE IN IN WHAT WE GENERATED IN TIPPING FEES.

I AM NOT AN ANALYST TO BE ABLE TO EVALUATE WHY OR WHAT THAT IS IF WE THINK THAT PEOPLE ARE GOING TO THE LANDFILL OR JUST THERE'S JUST LESS WASTE BEING GENERATED, I FIND THAT HARD TO BELIEVE, BUT NO, I DON'T THINK IT'S A BAD STRATEGY AT ALL, BUT IT IS A BALANCING ACT.

YEAH. THANK YOU. NO, I MEAN, AS FAR AS THE DIRECTION WE'RE GOING, I WOULD MUCH RATHER NOT SEE THE BIG OF AN INCREASE ON THE ON THE RESIDENTIAL SIDE FOR THOSE.

BACK TO THE POINT ON THE TIPPING FEE.

I MEAN, THIS IS A PRETTY WILD IDEA OR THOUGHT, BUT LIKE IF WE INCREASE THOSE FEES SUBSTANTIALLY, I MEAN, WHAT ARE THE ODDS OF WE RUN INTO AN ISSUE WITH MORE ILLEGAL DUMPING AND THINGS OF THAT MATTER? IT'S POSSIBLE.

I DON'T THINK THA A SMALL INCREASE ON THE TIPPING FEE, THOUGH, IS GOING TO BE THE DIFFERENCE.

IF SOMEBODY WAS WAS DOING IT ALREADY, THEY'RE GOING TO CONTINUE DOING IT, AND SOMEBODY WHO IS DOING THINGS THE RIGHT WAY, THEY'RE NOT GOING TO DECIDE TO ALL OF A SUDDEN JUST START BREAKING THE LAW AND ILLEGALLY DUMPING BASED ON A FEW DOLLARS PER TON TIPPING FEE.

OKAY. I WAS JUST CURIOUS.

GOOD QUESTION, THOUGH, BECAUSE ANYTHING WE DO THAT DRIVES UP ILLEGAL DUMPING IS OBVIOUSLY BAD.

ONE THING I WANTED TO ADD IN IS AS WE WERE LOOKING AT THE FEE INCREASES, THE KIND OF UNKNOWN FACTOR THAT WE CAN'T FULLY PREDICT IS WHAT WOULD HAPPEN ON THE COMMERCIAL SIDE, BECAUSE COMMERCIAL SIDE DOES HAVE A CHOICE.

I MEAN, TIPPING FEE AS WELL.

ACTUALLY, BOTH OF THOSE PEOPLE HAVE CHOICES, AND SO AS THE FEE GOES UP, THAT COULD CAUSE PEOPLE TO MAKE ANOTHER CHOICE, AND SO THAT'S JUST SOMETHING TO KIND OF KEEP IN MIND AS WE'RE TRYING TO BALANCE ALLOCATIONS ACROSS THE THREE DIFFERENT CATEGORIES, I GUESS.

WELL, I THINK THE WAY TO DO THAT, I MEAN, IT'S JUST GOING TO TAKE A PHONE CALL RIGHT, TO THE OTHER CARRIERS, FIND OUT WHAT THEY CHARGE FOR COMMERCIAL, AND LET'S JUST LET'S KEEP US. WELL, AND THAT'S WHAT'S BEEN DONE.

WE'VE MADE THOSE PHONE CALLS BEFORE AND COULD NOT GET THAT INFORMATION.

WHY? JUST DIDN'T WANT--WE'RE THEIR COMPETITORS COMPETITORS WITH THEM.

YEAH DON'T TELL THEM YOU'RE FROM THE CITY.

[CHUCKLING] OH, FAIR ENOUGH.

SORRY. I'M JUST SAYING.

THANK YOU. COUNCIL MEMBER TIPPS AND HE'S OFFERING TO MAKE THOSE PHONE CALLS FOR US.

SO, NO, WE HAVE A BUILDER ON BOARD.

I MEAN, WE'VE GOT BUSINESS OWNERS.

I UNDERSTAND, [INAUDIBLE] COMMERCIAL TRASH PICKUP.

I MEAN, IT'S A POTENTIAL CUSTOMER.

I MEAN, THAT'S YOU KNOW, THERE'S A SIGNIFICANT HISTORY OF THEM WATCHING OUR RATES AND ADJUSTING RELATED TO THAT, AND THERE'S A LEVEL WHERE WE'RE FAIRLY CLOSE TO THAT POINT, THE TIPPING POINT, IF YOU WILL, WHERE IT TRANSITIONS.

THERE'S FACTORS RELATED TO ALL OF THAT.

THE TIPPING FEE OUT AT THE LANDFILL THAT'S IMPACTED ON THE PRIVATE SIDE BY FUEL COST, FUEL HIGHER.

IT'S A LITTLE FARTHER IN THE CANYON THAN IT IS TO OURS, AND SO THAT'S AN IMPACT.

THAT'S THEIR DECISION, AND THAT'S SOMETHING THAT'S THAT THEY ALL WEIGH IN THEIR RATE SETTING PROCESS.

WE KIND OF SET THE MARKET, IF YOU WILL, ON ON THE COMMERCIAL AND THEN ALL OF THEIR FACTORS ARE THEN ADDED ON TO THAT FOR THEM, AND I FEEL LIKE THAT THERE IS A POINT WHERE WE RAISE OUR RATES, THEY JUST ADJUST IN RELATION TO THAT, AND THEN IT HITS A POINT WHERE THEIR CUSTOMERS IMPACT THEIR BUSINESS, BRINGS THAT BACK DOWN.

MAYBE I MISUNDERSTOOD, BUT I THOUGHT WE WERE KIND OF GROSSLY UNDERCHARGING.

IS THAT NOT CORRECT? I DON'T KNOW ABOUT GROSSLY. WE ARE UNDER CHARGING JUST FROM WHAT WE'RE TOLD.

SO WE'VE GOT SOME ROOM TO MOVE PROBABLY WITHOUT LOSING CUSTOMERS? I THINK. SO IF SOMEBODY'S TOP CRITERIA IS COST, WE'RE THE CHOICE ON COMMERCIAL BECAUSE WE ARE CHARGING LESS THAN THE TYPICAL.

[04:10:02]

I THINK THEY'RE REALLY GOOD. SO DO YOU MIND GOING OVER THOSE? NO, ABSOLUTELY. SO WE RAN SOME ESTIMATES JUST BASED ON THE NUMBER OF PERSONNEL THAT ARE CURRENTLY ASSIGNED TO COMMERCIAL AND THE NUMBER OF PIECES OF EQUIPMENT, AND SO RIGHT NOW, THAT'S A NET REVENUE IN COMMERCIAL OF $3.8 MILLION.

SO EXPENSES ARE WELL, THE REVENUE IS 6.7 MILLION.

SO THEN EXPENSES ARE WHAT'S THAT ABOUT 2.9? YEAH. SO THE NET IMPACT ON YOUR GENERAL FUND WOULD BE ABOUT 3.8 MILLION, RIGHT.

SO THE OFFSET OF THAT IS, IS BASICALLY WE HAVE THE ANSWER IN FRONT OF US.

DID YOU SAY 3.8 MILLION? YES, SIR. THAT'S MY NET.

THAT'S YOUR NET. SO PULLING REVENUE OFF AND THE EXPENSES ASSOCIATED WITH THAT PROGRAM OFF.

SO WHAT'S THE WHAT'S THE GROSS PROFIT OFF OF THAT? DID YOU RUN THAT? THAT IS THE 3.8 OR THERE'S A DIFFERENT NUMBER.

OKAY. SO BASICALLY, IF WE'RE WORKING FROM THAT NUMBER, WE WOULD NEED TO INCREASE TIPPING FEES AND INCREASE RESIDENTIAL IN ORDER TO GET US BACK TO A NET ZERO, WHICH IS COUNTERPRODUCTIVE.

SO HOPEFULLY WITHIN.

YES, MA'AM. SORRY, AND I JUST WANTED TO MAKE SURE WE WERE ALL KIND OF ON THE SAME PAGE, AND I THINK WE NEED TO BE CAREFUL OF.

I THINK YOU'RE RIGHT ON THAT.

IT APPEARS TO BE GROSS PROFIT, BUT THAT'S ACTUALLY COVERING OTHER THINGS THAT ARE NOT BEING DIRECTLY CHARGED INTO THOSE PROGRAMS, BUT SOME OF THOSE THINGS THAT ARE BEING CHARGED IN WOULD NOT NECESSARILY GO AWAY IF WE WERE TO TAKE OFF THE COMMERCIAL SIDE OF THOSE SERVICES, THINGS LIKE FRANCHISE FEES.

SO WE'RE NOT PAYING FRANCHISE FEES INTO GENERAL FUND BECAUSE SOLID WASTE LIVES INSIDE THE GENERAL FUND.

THEY'RE ALSO NOT PAYING ANY OR I'M SORRY, A PAYMENT IN LIEU OF PROPERTY TAX.

THEY'RE NOT PAYING THAT.

SO THERE'S THEY'RE NOT PAYING AN ADMIN FEE IN THERE, AND SO THERE'S SOME THINGS THAT IT'S TRULY IF THEY WERE PULLED OUT, THERE WOULD BE ADDITIONAL COSTS THAT WENT ON IT, BUT THOSE COSTS, THOSE OTHER COSTS DON'T REALLY NECESSARILY GO AWAY.

I GUESS, AS AS YOU REMOVE A SERVICE LIKE THIS.

SO I APPRECIATE THE CLARIFICATION.

ONE, I UNDERSTAND THERE'S SOME ADDITIONAL OVERHEAD FIXED COSTS THAT MAY REALLY NOT GO AWAY, BUT YOU LOSE THAT REVENUE AND YOU'RE ABLE TO ALLOCATE TO THAT DEPARTMENT OR THAT LEG OF YOUR DEPARTMENT. ALSO, I DON'T KNOW THAT I'M SAYING ENTERPRISE.

I'M NOT EXCLUDING IT, BUT I'M JUST SAYING I THINK THIS THING CAN STILL LIVE IN THE GENERAL FUND.

EVEN IF YOU DIDN'T HAVE COMMERCIAL AS AS A PART OF IT, BUT EITHER WAY, IT DOESN'T LOOK TO BE A REAL PRODUCTIVE CONVERSATION, TO LOOK AT NOT HAVING THE COMMERCIAL SIDE, AND IF WE DO INCREASE OUR COSTS, WE'RE GOING TO FIND OUT HOW GOOD OF A JOB ARE WE DOING FOR OUR CUSTOMERS BECAUSE IF WE'VE RAISED OUR RATES A LITTLE BIT TO BE MORE COMPETITIVE WITH THE STANDARD THAT HELPS US WITHIN OUR GENERAL FUND FOR OUR OTHER ASSOCIATED COSTS, BUT ALSO I MEAN, IF THERE'S A TOLERANCE OF A LESSER SERVICE BASED ON A SAVINGS, YOU'RE NOT GOING TO SEE THAT, AND THEN WE WOULD BE ABLE TO EVALUATE OUR PERFORMANCE AND IMPROVE PERFORMANCE.

I BELIEVE WE'RE NOT NECESSARILY LOOKING AT THE NEED OF THE DUMPSTER REPLACEMENT, PUTTING THAT OFF.

THAT IS SOMETHING THAT WE COULD DO.

SO I WOULD ASK COUNCIL LOOKING COMPREHENSIVELY OR CUMULATIVELY AT THE OVERALL FEES THAT WE'RE TALKING ABOUT AND EVERYTHING THAT WE'RE TAKING ON.

IS THIS THE RIGHT TIME OR IS NEXT YEAR A BETTER TIME? AND DO WE HAVE A GOOD-SIZED SAVINGS ON THIS POTENTIAL INCREASE IF WE CHOSE NOT TO DO IT? WHAT'S THE MAGNITUDE OF URGENCY FOR THESE DUMPSTERS? WELL, I THINK YOU SEE THAT IN THE COMPLAINTS THAT WE RECEIVE, AND I KNOW YOU ALL SEE SOME OF THEM IS THE COMPLAINTS ABOUT DAMAGED LIDS, BOTTOMS FALLING OUT, PINS THAT ARE BROKEN.

IT'S BEYOND JUST COSMETIC ISSUES.

IT'S TO THE POINT OF SITUATIONS THAT REALLY PREVENT THE DUMPSTER FROM BEING EMPTIED OR WHEN IT IS EMPTY, TRASH FALLS OUT THE BOTTOM OF IT.

UNFORTUNATELY, IMPLEMENTING IT THIS YEAR DOESN'T FIX THE PROBLEM.

THIS YEAR. IF YOU GET ON A 13 YEAR REPLACEMENT CYCLE, IT'S 13 YEARS BEFORE YOU SEE THE FULL BENEFIT OF THE PROGRAM, BUT DELAYING IT A YEAR IS ANOTHER YEAR THAT IT DOESN'T GET BETTER AND IN FACT WOULD GET WORSE.

OKAY. [INAUDIBLE].

THAT'S RIGHT. YEP.

YEAH. JUST BASED ON HOW MANY WE CAN BUY A YEAR WITH WHAT THEY COST NOW AND 18,000 DUMPSTERS IN THE FIELD.

IT'S 29 YEARS.

WELL, I LIKE THE FACT THAT WE.

WE DEFINITELY ARE LOOKING AT IT IN THE WAY OF WE'RE GOING TO FIX THE PROBLEMS, I BELIEVE, AND PROPOSE THE AMOUNTS THAT ARE NEEDED TO ACTUALLY FIX THE PROBLEM, AND THEN WE'RE JUST TRYING TO BACK INTO THESE DEALS AND BALANCE THEM.

[04:15:02]

I'D LOVE TO SEE THOSE NUMBERS COME BACK.

I THINK THERE'S A TOLERANCE THAT THE LANDFILL WOULD LOVE TO SEE WHAT WHAT YOU FEEL FAIRLY CONSERVATIVELY IS FAIR TREATMENT ACROSS THE BOARD AND THEN ON THE RESIDENTIAL SIDE, I WOULD JUST LIKE TO SEE THE REMAINING AMOUNT SO WE COULD SEE THAT.

YEAH, ABSOLUTELY.

GO AHEAD. NO, I AGREE.

I THINK THE DUMPSTER REPLACEMENT DEAL IS A BIG DEAL.

I THINK, AGAIN, FORWARD FACING TOWARDS THE THAT'S WHAT THEY SEE EVERY DAY.

LIKE YOU SAID, BIG SOURCE OF COMPLAINTS.

SO IF THAT'S SOMETHING WE CAN GET IN FRONT OF, I THINK THAT'S A THAT'S A GOOD THING.

YEAH. DO WE DO ANYTHING TO MARKET OR RECRUIT OR GET MARKET SHARE FROM OUR COMMERCIAL COMPETITORS IN THE MARKETPLACE? OR IS IT JUST IF SOMEBODY CALLS US UP, WE'LL DO IT? OR HOW DOES THAT WORK? IT REALLY IS.

IF SOMEONE CALLS US UP, WE'LL DO IT.

WE DON'T ADVERTISE THE COMMERCIAL COLLECTION SERVICE.

I THINK THERE'S WE SEE SOME BUSINESSES IN TOWN AND I WON'T NAME ANY BECAUSE I JUST DON'T WANT TO MAKE A MISTAKE, BUT THERE ARE SOME THAT JUST HAVE MULTIPLE LOCATIONS AND THEY JUST USE US FOR EVERY SOURCE BECAUSE IT'S FOR EVERY SITE, BECAUSE IT'S EASIER TO DEAL WITH ONE VENDOR THAN ANOTHER, BUT NO, WE ARE NOT ACTIVELY OUT MARKETING OUR COMMERCIAL COLLECTION PROGRAM, AND I DID THE SAME THING I DID WITH DRAINAGE UTILITY, AND I EVEN TOLD THEM I WOULDN'T DO IT.

I DID NOT INTRODUCE OUR SOLID WASTE SUPERINTENDENT RICKY RIVERA.

I'M JUST TERRIBLE.

I'M JUST THE WORST LEADER EVER.

SO I APOLOGIZE FOR THAT, BUT RICKY HAS BEEN THE SOLID WASTE SUPERINTENDENT FOR JUST OVER A YEAR NOW FOR THAT, HE WAS THE ASSISTANT SUPERINTENDENT OVER DISPOSAL, AND SO I JUST WANT YOU ALL TO KNOW WHO HE IS BECAUSE YOU'RE GOING TO SEE HIM MOVING FORWARD.

SO I APOLOGIZE, MR. RIVERA. YEAH.

NO, NO APOLOGIES NECESSARY.

WE REALIZE YOU'RE AN ENGINEER.

LIKE IT'S NORMAL. NO, I'M KIDDING.

I'M KIDDING. THAT IS EXTREMELY FAIR.

THAT IS VERY FAIR, AND YOU WONDER WHY HE'S LEAVING [INAUDIBLE] LAST MEETING, TOO.

JUST KIDDING. SO, OKAY, WHAT OTHER QUESTIONS FROM COUNCIL BEFORE WE HAND IT BACK TO MISS LAURA? WE GET THOSE NUMBERS BACK FROM YOU, WE'LL MAKE A DECISION.

BE READY TO GO. SOUNDS GOOD.

OKAY. OKAY.

LET'S GO TO STREETS NEXT.

SO IN YOUR BOOKS, IF YOU'LL TURN, LET'S SEE HERE TO PAGE.

OH, SORRY. HANG ON.

THOUGHT I HAD IT. WHILE SHE'S LOOKING.

I WILL TAKE THIS OPPORTUNITY BEFORE I FORGET TO INTRODUCE CHRIS MITCHELL, OUR STREET SUPERINTENDENT.

CHRIS IS A LONG TIME CITY EMPLOYEE AND WE ARE VERY, VERY LUCKY TO HAVE HIM.

HE IS AN EXPERT IN HIS FIELD AND WE'RE ON PAGE 473.

SO WITH THAT, I WILL LET EITHER CHRIS OR ALAN GO THROUGH MAYBE JUST A COUPLE OF HIGHLIGHTS ON THIS.

I DON'T KNOW. OH, YES, WE DID HAVE A SUPPLEMENTAL REQUEST ON THIS.

IF YOU LOOK BACK ON YOUR SUPPLEMENTAL REQUEST SHEET, TURN TO PAGE FOUR OF SEVEN AND YOU WILL SEE THAT THERE WERE A COUPLE OF SUPPLEMENTAL REQUESTS ADDED IN FOR ADDITIONAL MATERIALS TO BE PURCHASED, AND WE'RE LOOKING AT TO HELP BALANCE THE ENTIRE GENERAL FUND BUDGET.

WE SCALED BACK JUST A PORTION OF ONE OF THEM.

SO IT LOOKS LIKE IT WOULD BE INCREASING JUST ABOUT 800,000, AND SO MIGHT HAVE ALAN OR CHRIS GO OVER INFORMATION RELATED TO THAT, THOSE ADDITIONAL MATERIALS THAT ARE NEEDED.

YEAH. THANKS, LAURA. SO THERE'S TWO SUPPLEMENTAL REQUESTS FOR THE MATERIAL COST INCREASES, WHICH TRULY IS JUST THAT WE'VE SEEN INCREASES IN THE COST OF OIL OVER THE PAST FEW YEARS. CHRIS, DO YOU WANT TO SPEAK A LITTLE BIT ABOUT EXACTLY WHAT PROGRAM AREAS THESE MATERIALS ARE USED IN? THESE MATERIALS WOULD BE BASED IN OUR MAINTENANCE OPERATIONS.

WHEN WE GO OUT AND WE PATCH A POTHOLE, FIX AN UNPAVED ALLEY, JUST THE MATERIALS THAT WE HAVE TO PURCHASE TO BE ABLE TO DO THAT.

SO COULD YOU, ALAN OR CHRIS, COULD YOU ALL BRIEFLY KIND OF TALK ABOUT MAYBE WHAT IS THE ANNUAL AMOUNTS GOING THROUGH HERE UTILIZE FOR WHAT ARE YOU ALL'S KIND OF BIG PROGRAMS THAT YOU PROVIDE ON AN ANNUAL BASIS JUST FOR COUNCIL'S UNDERSTANDING VERSUS LIKE SOME OF THE CAPITAL FUNDING THAT WE PUT OVER FOR MAYBE THE OVERLAY PROGRAM OR SOMETHING LIKE THAT, IF YOU ALL COULD KIND OF HELP THEM WITH SOME DISTINCTION ON THAT.

YEAH, ABSOLUTELY. SO THE PROGRAMS AND WE'LL JUST GO THROUGH THE BUDGET NARRATIVE PAVEMENT PRESERVATION PROGRAM IS REALLY THE ANNUAL SEAL COATING AS WELL AS CRACK SEALING AND ALLEY SEALING.

[04:20:01]

IT'S NOT ABOUT REPAIRING ANYTHING.

IT LITERALLY IS JUST GETTING THE MOST POSSIBLE LIFE OUT OF THE PAVEMENT THAT WE HAVE.

THE NEXT ONE IS THE PAVEMENT MAINTENANCE AND REPAIR.

THAT REALLY IS WHERE YOU GET INTO POTHOLE REPAIRS, WHICH IS TYPICALLY ANYTHING THAT'S ABOUT THREE FOOT BY THREE FOOT OR SMALLER.

WE CONSIDER THAT A POTHOLE.

THE NEXT LEVEL UP IS A MINOR REPAIR.

THAT'S SOMETHING THAT'S AROUND TEN FEET BY 15FT SOMETHING BIGGER THAN A POTHOLE, BUT IT'S NOT A SIGNIFICANT PROJECT.

WE CALL THAT A MINOR REPAIR, KIND OF LIKE A PATCH, AND THEN THE NEXT IS THE MAJOR REPAIRS THAT'S ANYTHING LARGER THAN THE MINOR REPAIR YOU MAY SEE IN THAT PROGRAM.

THE STREET DEPARTMENT WORKING TO TEAR OUT AN ENTIRE BLOCK'S WORTH OF AN ALLEY OR A VERY LONG SEGMENT OF A STREET THAT ACTUALLY NEEDS TO BE RECONSTRUCTED.

THEY'RE ABLE TO DO THAT IN-HOUSE.

THEY HAVE CREWS THAT PERFORM THAT WORK TWO YEARS AGO.

I LIKE TO TALK ABOUT EFFICIENCIES.

TWO YEARS AGO, CHRIS IDENTIFIED SOME SAVINGS AND WAS ABLE TO PURCHASE A SMALL LAY DOWN PAVING MACHINE SO SIMILAR TO WHAT YOU SEE ON HIGHWAY PROJECTS, BUT A LOT NARROWER, AND SO THEY'RE ABLE TO DO A LOT OF PAVING ON THEIR OWN IN NARROW AREAS LIKE AN ALLEY, INSTEAD OF TRYING TO DO IT BY HAND, WHICH IS VERY SLOW.

IT'S VERY INEFFICIENT.

IT DOESN'T RESULT IN A VERY GOOD SURFACE.

NO MATTER HOW GOOD YOU ARE AT IT.

YOU JUST CAN'T DO IT AS WELL AS A PAVING MACHINE, AND SO THEY'VE PUT THAT TO WORK AND ARE ABLE TO BE MUCH MORE EFFICIENT WITH THOSE MINOR AND ESPECIALLY THE MAJOR REPAIRS.

THE NEXT ONE IS WINTER WEATHER OPERATIONS.

THAT'S ONE THAT IF WE SPEND $0 OUT OF THAT IN A YEAR, I'M VERY HAPPY ABOUT.

THAT'S SALTING AND SANDING OF INTERSECTIONS AND OVERPASSES.

WORST CASE SCENARIO IS WHEN THEY HAVE TO GO INTO PLOW MODE.

A LOT OF QUESTIONS COME UP AND I'M KIND OF GLAD TO GET AN OPPORTUNITY TO TALK ABOUT IT.

NOW. WE WANT TO AVOID PLOWING AS MUCH AS POSSIBLE BECAUSE THE BEST REMEDY TO GET RID OF SNOW IN THE TEXAS PANHANDLE IS LET THE SUN COME OUT AND MELT IT AWAY.

ONCE YOU PLOW IT, YOU WINDROW IT UP INTO A PILE.

NOW IT'S NOT GOING TO MELT.

SO NOW THE STREET DEPARTMENT HAS TO COME OUT WITH LOADERS AND DUMP TRUCKS, HAUL IT UP, LOADED UP AND HAUL IT AWAY.

IT'S A LOT MORE OF AN INTENSIVE OPERATION.

YOU PUT IT INTO THE CENTER, TURN LANES ON ARTERIAL STREETS.

SO NOW YOU'RE IMPACTING TRAFFIC.

ALSO CREATES A LOT OF QUESTIONS ABOUT WHY WE DON'T PLOW RESIDENTIAL STREETS.

THAT'S ONE THAT I WOULDN'T BE SHOCKED IF YOU GET AT SOME POINT IN YOUR CAREER WHEN WE GET A SNOW IN ARTERIALS, WE HAVE THE LUXURY OF THAT CENTER TURN LANE TO PLOW THE MATERIAL INTO. WE DON'T HAVE THAT IN A RESIDENTIAL STREET.

YOU CAN'T PUT IT IN THE MIDDLE OF THE ROAD BECAUSE THERE IS NOWHERE TO GO AND YOU CAN'T PUSH IT TO THE SIDE BECAUSE YOU'LL BLOCK EVERYBODY'S DRIVEWAY.

SO IF YOU EVER GET THE QUESTION ABOUT WHY WE DON'T PLOW RESIDENTIAL STREETS, IT'S BECAUSE NOBODY WOULD BE ABLE TO GET OUT OF THEIR GARAGE AND THEY'D ALL BE VERY MAD AT US ABOUT THAT, AND THEN LAST IS STREET STRUCTURE, MAINTENANCE REPAIR.

THAT'S A FAIRLY MINOR PROGRAM, BUT VERY IMPORTANT GUARDRAIL, ESPECIALLY.

WE HAVE A NUMBER OF AREAS IN TOWN THAT ARE PROTECTED WITH GUARDRAILS.

SOME OF THE BRIDGES THAT GO OVER EAST AND WEST AMARILLO CREEK, AS WELL AS SOME AREAS UP IN THE NORTHEAST PART OF TOWN WHERE THERE'S SOME CURVES AND THINGS LIKE THAT REQUIRE GUARDRAIL. THEY'RE ABLE TO REPAIR THAT AND REPLACE THAT GUARDRAIL IN-HOUSE.

HEY, ALAN, JUST REAL QUICK ON LOOKING AT THE SPEED BUMP THING, AND IT MAY BE A GOOD QUESTION IS CAN YOU KIND OF EXPLAIN THE PROCESS JUST REAL BRIEFLY? IF A CITIZEN CONTACTS US AND IT'S LIKE, HEY, CAN WE LOOK AT PUTTING SPEED BUMPS IN HERE? WHAT'S THAT LOOK LIKE? SURE. SO WHEN WE GET THAT REQUEST, WE SEND IT TO OUR TRAFFIC DEPARTMENT AND LET THE TRAFFIC ENGINEERS EVALUATE WHAT ARE WHAT ARE VEHICLES DOING IN THIS AREA? DOES IT REALLY MEET THE WARRANT OR THE NEED TO HAVE SPEED BUMPS INSTALLED? AND TYPICALLY THAT'S ALLEYS IS WHERE WE SEE THIS REQUEST THE MOST.

WE DO NOT CURRENTLY INSTALL SPEED BUMPS IN STREETS.

THERE ARE SOME NEIGHBORHOODS WHERE THEY MIGHT HAVE BEEN INSTALLED WHEN IT WAS DEVELOPED, ESPECIALLY AT CROSSWALKS, BUT PRIMARILY THIS IS FOR ALLEYS.

WE SEE IT A LOT IN PLACES WHERE THERE IS AN ALLEY THAT COMES OFF AN ARTERIAL STREET.

SO IT KIND OF MAKES A NICE SHORTCUT FOR PEOPLE TO CONVENIENTLY ZIP DOWN AND PEOPLE SOMETIMES GO TOO FAST TO THAT.

SO THE TRAFFIC DEPARTMENT WILL EVALUATE, DETERMINE IF IT'S WARRANTED.

IF IT IS, THEY WILL CONTACT THE STREET DEPARTMENT, WHO WILL WHO WILL SCHEDULE GOING OUT AND INSTALLING THOSE.

I APPRECIATE THAT. THANK YOU.

WHAT IS THE THRESHOLD ON PLOWING GENERALLY IF YOU GET X AMOUNT OR OVER? SO WE HAVE A WINTER WEATHER OPERATIONS PLAN AND I BELIEVE THE NUMBER IS FIVE INCHES AND CONTINUING TO FALL, BUT WE HAVE A BINDER THAT TELLS US NONE OF IT IS JUST REALLY MADE UP OFF THE TOP OF OUR HEAD.

IT'S ALL BASED ON CERTAIN THRESHOLDS.

THIS MUCH SNOW EXPECTED IN THIS MUCH TIME.

WE'RE GOING TO GO OUT AND START SALTING AND SANDING.

I BELIEVE THE FOR PLOWING.

IT'S FIVE INCHES AND MORE TO COME.

THANKS. GOOD QUESTION, AND GLAD I'D LOOKED THAT UP RECENTLY.

DO YOU HAVE QUESTIONS? JUST A COUPLE QUESTIONS.

OKAY, GREAT. SO STREET REPLACEMENT NOWHERE IN THIS $12,000 BUDGET.

CORRECT. YOU HAVE YOU HAVE REPAIR AND MAINTENANCE, BUT STREET REPLACEMENT.

RIGHT. THAT'S BUDGETED USUALLY THROUGH THE CAPITAL IMPROVEMENT PROGRAM CAPX, ALL CIP.

RIGHT. ALL SOMETHING THAT'S GOING TO BE DONE BY A CONTRACTOR IS THAT BEST PRACTICES TO NOT HAVE ANYTHING IN THERE OR DO OTHER CITIES GO AHEAD AND PUT AT LEAST $2 MILLION A

[04:25:01]

WE SEE A SIGNIFICANT AMOUNT OF TURNOVER.

THAT'S SOMETHING THAT PLAGUES US IN JUST OUR SEAL COAT PROGRAM EVERY YEAR IS IT'S NOT AN EXTREMELY EFFICIENT OPERATION BECAUSE EVERY YEAR WE'RE HAVING TO HIRE TEMPORARY HELP AND TRAIN NEW EMPLOYEES IN WHAT ANYONE WHO'S SEEN PAVING OPERATIONS, IT'S ALMOST LIKE WATCHING A SYMPHONY.

IT'S A VERY DELICATE BALANCE, AND IT'S NOT JUST SOMETHING YOU CAN THROW PEOPLE ON AND SAY GO DO IT AND THEY DO IT, AND SO I THINK BY HAVING THAT RESIDE FULLY IN CAPITAL IS THE MOST EFFICIENT AND COST EFFECTIVE WAY TO DO IT.

OKAY. I APPRECIATE THAT. SO I DO WANT TO CALL ATTENTION TO COUNCIL THAT WE UNDERSTAND LIKE WE HAVE NO MONIES ALLOCATED HERE THAT WE CAN RELY ON.

SO WE HAVE TO BE HEAVY ON THE CIP PART OF THAT AND PRIORITIZING THAT AND THEN WHEN WE DON'T PRIORITIZE THAT BECAUSE WE HAVE EMERGENCIES OR WE HAVE OTHER AGENDAS, LIKE IT'S EVEN MORE SIGNIFICANTLY IMPACTING THIS BECAUSE YOU DON'T EVEN HAVE THIS BUILT IN WHERE THEY HAVE A CERTAIN AMOUNT PER YEAR TO CONTRACT WITH.

WHAT WERE YOU GOING TO SAY, MAN? SO I WAS GOING TO ADD TO THAT POINT OF INFORMATION THAT WE HAVE HISTORICALLY HAD ABOUT 2.6 MILLION THAT WE'RE ALLOCATING ANNUALLY OVER INTO A CAPITAL PROGRAM, AND AGAIN, 2.6 MILLION.

IT'S A LOT OF MONEY, BUT WHEN IT COMES TO ESPECIALLY REDOING AN ENTIRE STREET, IT'S NOT VERY MUCH MONEY.

SO BUT I THINK HISTORICALLY, A LOT OF THOSE DOLLARS HAVE BEEN USED FOR LIKE THE OVERLAY PROGRAMS. I'M LOOKING AT KYLE AND HE'S NODDING.

SO THAT'S A GOOD THING, BUT IN JUST A SECOND, I WOULD LIKE US AFTER WE'VE GOT SOME QUESTIONS ANSWERED, I WOULD LIKE FOR US TO FLIP BACK TO THE CAPITAL SECTION OF THE BOOK AND KIND OF BRIEFLY TALK ABOUT IT IN CONJUNCTION WITH THIS CONVERSATION, BECAUSE WE HAVE A LITTLE BIT DIFFERENT PLAN POSSIBLY FOR THIS NEXT YEAR THAT WE WANT TO MAKE SURE WE'VE KIND OF BRIEFLY TALKED WITH YOU ALL ABOUT IT, BUT WE WANT TO TALK MAYBE A LITTLE BIT MORE AT THIS POINT WITH YOU ON IT.

MY ONLY OTHER QUESTION WOULD BE STAFFING YOU'VE GOT WAS IT 92 OR 94 POSITIONS? HOW MANY VACANCIES DO YOU HAVE? GO AHEAD. CURRENTLY WE HAVE 15 VACANT POSITIONS.

SO 15 OPEN POSITIONS, AND DO YOU NORMALLY KIND OF RUN THERE OR ARE YOU NOT USED TO BEING THIS LOW? WHEN WAS THE LAST TIME YOU WERE FULLY STAFFED? IT'S BEEN A FEW YEARS SINCE WE'VE BEEN FULLY STAFFED.

OKAY. SO LOOKING AT OUR OVERALL BUDGET, DOES YOUR BUDGET REFLECT THE FULL AMOUNT OF ALL STAFF POSITIONS, THE FULL 90? LET ME GET THAT RIGHT. IT DOES.

OKAY.

IDEALLY, YOU'D LOVE TO HAVE ALL OF THOSE POSITIONS IF WE'RE NOT FILLING THEM AND WE ARE TRYING TO WORK BUDGET TO WHERE WE PUSH AS MUCH MONEY INTO THOSE CIP PROJECTS.

IF WE LEAVE SOME MONEY HERE IN THIS BUDGET AND IT DOESN'T END UP OVER THERE, I THINK IT IMPACTS YOU MORE NEGATIVELY.

SO IN YOUR PARTICULAR POSITION, IF I WAS RECOMMENDING A BUDGET CUT TO STAFF AND YOU SAID, WELL, I CAN LOSE TEN OF THOSE BECAUSE I'LL NEVER FILL THEM, WHAT DO THOSE TEN EQUATE TO IN IN MY CAPX OR MY CIP? WELL, I CAN TALK TO YOU A LITTLE BIT TOO, ABOUT WITH THE UNFILLED POSITIONS THAT GETS USED.

WE TYPICALLY WORK A LOT OF OVERTIME IN THE SUMMERS, ESPECIALLY TIME PERIODS WHERE YOU WANT TO MAKE HAY WHILE THE SUN SHINES.

THAT'S YOUR PAVING SEASON.

SO HAVE MULTIPLE CREWS THAT START EARLIER IN THE MORNING AND WORK LATER INTO THE EVENING , AND SO WHEN YOU GO BACK AND LOOK AT PERSONAL SERVICE OVER THE PAST FEW YEARS, EVEN THOUGH THERE ARE VACANT POSITIONS WE'RE SPENDING, ALL OF THOSE FUNDS NOW MAY BE MORE EFFICIENT.

I'M NOT ARGUING AGAINST DOING SOMETHING ELSE WITH THAT MONEY.

I JUST WANT YOU TO UNDERSTAND THE MONEY IS SPENT DOING PAVING OPERATIONS, DOING REPAIRS, AND JUST IN A LITTLE BIT OF A DIFFERENT WAY THAN TAKING THOSE SAVINGS AND PUTTING THEM INTO CAPITAL PROJECTS.

AGAIN, NOT ARGUING AGAINST IT, JUST POINTING IT OUT.

YEAH, AND I'M NOT NECESSARILY IN FAVOR OF OF DOING MORE STREET REPLACEMENTS THAN I AM IN DOING MORE STREET REPAIR.

I MIGHT ACTUALLY BE MORE IN FAVOR OF PREVENTATIVE AND HAVING MORE MONIES ALLOCATED HERE SO THAT WE DON'T HAVE AS MUCH COST ON THE ON THE BACK END. SO IN YOUR OPINION, EITHER OF YOU, WOULD YOU RATHER SEE THIS BUDGET WRITTEN DIFFERENTLY? CAN YOU UTILIZE THAT MONEY SOMEWHERE ELSE OTHER THAN JUST LEAVING IT IN FUTURE UNFILLED POSITIONS, OR IS IT OKAY THE WAY IT SITS? OR FLOYD? I'M GOING TO WEIGH IN ON THAT ONE A LITTLE BIT.

SO ONE OF THE THINGS WE'VE BEEN DOING THROUGHOUT THE DEPARTMENTS RECENTLY IS ALLOWING THEM TO TAKE THESE UNFILLED POSITIONS AND RESTRUCTURE EXISTING POSITIONS FOR HOPEFULLY PAY INCREASES OR ADJUSTMENTS TO O DO THAT.

SO IN THIS BUDGET, THIS JUST PROPOSES THE SAME LEVEL OF THE SAME POSITIONS AS IT WAS THE PREVIOUS YEAR, AND I WOULD PREFER AT THIS YEAR TO SEE CHRIS HAVE THE OPPORTUNITY TO HAVE THAT RESOURCE FOR HIM TO LOOK AT REALLOCATION AND WHAT HE COULD DO TO MINIMIZE THAT TURNOVER AND ADJUST IN A PAY SCALE.

SO ALTHOUGH THE NUMBERS WOULD LOOK DIFFERENT, THE DOLLARS WOULD LOOK THE SAME, ONLY REALLOCATED HOPEFULLY TO LIKE WE'VE DONE.

[04:30:09]

SO WE CAN CAPTURE THAT IN THE FUTURE.

THIS YEAR IT'S ALLOCATED IN YOUR CASH FLOW, BUT WE CAN GO THROUGH A PROCESS AT THE END OF NEXT YEAR LOOKING AT THAT.

WELL AND AGAIN THAT IS HOW WE FUND CAPITAL PROJECTS WITH ON A CASH BASIS THESE ANY KIND OF VACANCY THAT WE HAVE IN THE GENERAL FUND, ANY KIND OF COST SAVINGS THAT WE HAVE IN THE GENERAL FUND, WE CAPTURE THOSE DOLLARS IN THE NEXT YEAR AND PUSH IT OUT INTO CAPITAL.

SO AGAIN, IT DOESN'T NECESSARILY GET DEDICATED TO STREETS IF IT CAME FROM STREETS, BUT IT'S PART OF THE OVERALL PRIORITIZATION PROCESS THAT THEN COMES TO YOU ALL, AND IN THIS CASE, WE'RE ACTUALLY PUTTING MORE MONEY TOWARDS STREETS THAN WE HAVE, I THINK HISTORICALLY BECAUSE WE'VE GOT SOME REALLY GREAT GRANT OPPORTUNITIES ALSO.

I THINK THAT'S GOOD, AND THEN I THINK FOR YOU, YOU MAY ALREADY BE DOING THIS, BUT IF NOT, IF YOU'RE GOING TO GO FOR A YEAR TRACKING HOW MANY MILES, HOW MANY SQUARE YARDS, HOW MANY LINEAR FEET, WHAT DID WE DO? AND THEN HOW MANY PEOPLE DID YOU DO THAT WITH? YOU KNOW, SO LIKE MY POSITIONS ARE 92, BUT I ACTUALLY WORKED WITH 80 BUT THE 80 I HAVE, I'VE PAID MORE BECAUSE HERE'S HOW MANY MORE POTHOLES WE FIXED IN 23 THAN WE DID IN 22, AND HERE'S HOW MANY MORE LINEAR FEET , AND SO PUTTING THE MONEY INTO THE HANDS OF THOSE EMPLOYEES THAT ARE EARNING IT, WE'RE ALL IN FAVOR OF THAT.

ANY OTHER QUESTIONS BEFORE WE GO TO CIP? JUST A QUICK ONE AND JUST FOR MY INFORMATION, BECAUSE YOU'RE GETTING ASKED QUESTIONS.

SO SEE AVERAGE DAYS TO REPAIR MAJOR ASPHALT FAILURE, BOTH STREETS AND LIKE 550 DAYS AND 375 DAYS.

WHAT IS THAT A FACTOR OF? BECAUSE IS THAT A BID PROCESS? IS THAT LIKE WHY IS THAT SO LONG? DO YOU WANT TO SPEAK TO THAT? CHRIS, I FEEL LIKE YOU'RE PROBABLY IN THE POSITION TO BEST SPEAK TO THAT, AND IT ISN'T A BID PROCESS.

THAT'S ALL DONE WITH CITY STAFF.

SO HE'LL TALK ABOUT THAT.

SO ON THE AVERAGE, [INAUDIBLE] ON THE AVERAGE DAYS TO PERFORM MAJOR REPAIR IN A STREET.

ONE OF THE REASONS WHY THAT IS SO HIGH IS WE GET VERY FEW SERVICE REQUESTS ON THOSE TYPES OF REPAIRS.

SO YOU DON'T HAVE WHEN WE DO ONE THE TIME PERIOD, WE DON'T HAVE A LOT TO COMPARE AGAINST AS WE DO WITH THE POTHOLE.

SO MOST OF THE MAJOR REPAIR THAT WE GET WILL BE PERFORMING THEM WITHOUT A SERVICE REQUEST , BUT IF YOU DO HAVE ONE LIKE A WESTERN THAT WE HAVE TO WAIT FOR A RECONSTRUCTION THAT TIME PERIOD TO WAIT FOR THAT PROJECT TO OCCUR.

THAT'S WHY THAT SECTION IS LIKE 600 DAYS.

THE MAJOR REPAIR FAILURE IN AN ALLEY.

CURRENTLY, WE HAVE QUITE A BACKLOG.

WE HAVE LIKE A TWO YEAR BACKLOG TO COME IN AND RECONSTRUCT AN ALLEY, AND SO THAT'S WHY YOU HAVE 400 DAYS ON THAT ONE TO BE ABLE TO RESPOND TO THAT SERVICE REQUEST.

SO THE STREET ONE IS KIND OF SKEWED JUST BECAUSE OF THE NUMBER OF REQUESTS THAT WE GET FOR THE MAJOR REPAIR.

THE ALLEY IS MORE.

BASED ON THE BACKLOG THAT WE HAVE.

YEAH, I WAS GOING TO MENTION HE TOUCHED ON THE BACKLOG OF THE ALLEY, SOMETHING THAT WE'LL TALK ABOUT A LITTLE BIT WHEN WE GET TO THE DISCUSSION.

ALLEYS ARE A MAJOR PROBLEM RIGHT NOW, AND SO IN 2017, THE CITY DID A STREET PAVEMENT ASSESSMENT DID NOT INCLUDE ALLEYS.

THIS YEAR WE'RE CURRENTLY GOING THROUGH A STREET AND ALLEY PAVEMENT ASSESSMENT.

WE RECOGNIZE THAT WE NEED TO EVALUATE THE CONDITION OF OUR ALLEYS BECAUSE WE'RE SEEING RELATIVELY NEW PAVEMENT IN A VERY BAD CONDITION AND SO BIGGER PICTURE PLAN, THE THOUGHT IS POTENTIALLY CHRIS'S RESOURCES WITH WHAT HE HAS IN THE STAFF HE HAS, FINDING A WAY TO TRY TO GET HIS TEAM FOCUSED ON ALLEYS, AN AREA WHERE THEY CAN WORK EFFICIENTLY AND THEN ALLOW MORE CONTRACT LABOR TO DO MAINTENANCE, NOT NECESSARILY REPAIR, BUT THE PRESERVATION, THE SEALCOAT, THE OVERLAY, THOSE TYPES OF PROJECTS OUT IN THE STREET, AN AREA WHERE A CONTRACTOR CAN BE EXTREMELY EFFICIENT, MUCH MORE SO THAN CITY STAFF.

SO WE RECOGNIZE THE PROBLEM IN THE ALLEY AND ARE KIND OF MAKING PLANS TO SLOWLY START SHIFTING CITY FOCUS THERE WITH MORE CONTRACTOR FOCUS IN THE STREETS.

OKAY. THANK YOU.

YES. OKAY. SO IF YOU'LL TURN IN YOUR BOOKS AND WE MAY BRING KYLE UP FOR A LITTLE BIT OF THIS AS WELL, BUT TURN TO PAGE 829, AND

[04:35:09]

UP AT THE TOP WE'VE GOT STREETS AND YOU CAN SEE THAT WE'RE PROPOSING A TOTAL OF ABOUT $18.1 MILLION IN STREET PROJECTS THIS UPCOMING YEAR, BUT OF THAT, WE'RE LOOKING TO CAPTURE ABOUT 8.4 IN GRANT FUNDING, BUT WE'VE GOT TO BE ABLE TO MAKE THOSE MATCHES.

SO PART OF IT, WE ARE PROPOSING TO COME FROM A MATCH OF GENERAL FUNDING, CASH FUNDING FOR IT, AND THAT'S ON THE SOUTHEAST 10TH AVENUE STREETSCAPE IMPROVEMENT PROJECT, AND THEN WE HAD DISCUSSED PREVIOUSLY ABOUT POTENTIALLY ISSUING SOME COS TO DO THE ALMOST $3 MILLION IN MATCHING FUND RELATED TO THE NORTHEAST 24TH RAILROAD OVERPASS PROJECT AND IF WE CAN COME UP WITH 3 MILLION, THEN WE'LL GET 8.4 MILLION.

SO, I MEAN, IT'S A GREAT USE OF OF THOSE DOLLARS, BUT I KNOW WE HAD KIND OF TALKED ABOUT A CO.

I ALSO WANT TO MENTION THAT WE DID TALK YESTERDAY A LITTLE BIT ABOUT THERE'S POTENTIALLY SOME PROPERTY TAX DOLLARS THAT MAY BE ON THE TABLE THAT ARE NOT BUILT IN ANYWHERE ON YOUR BUDGET, AND SO WE HAD TALKED ABOUT SOME OPTIONS ON THAT.

THAT COULD POTENTIALLY BE AN OPTION FOR FUNDING FOR CASH FUNDING A PROJECT LIKE THAT INSTEAD OF LOOKING AT SOME SORT OF A DEBT ISSUANCE.

SO THERE'S MULTIPLE TOOLS THAT YOU COULD USE, BUT THIS IS KIND OF HOW WE'VE PROPOSED IT HERE, AND THEN I DON'T KNOW IF YOU ALL WANT TO NOTE ANYTHING RELATED TO THESE STREET PROJECTS.

WE'VE GOT A CRUSHING RECYCLED ASPHALT PROJECT, AND LET'S SEE HERE AND THEN EQUIPMENT FOR ADDITIONAL HOT MIX LAYDOWN OPERATION THAT MAYBE I THINK THEY COULD EXPLAIN A LITTLE BIT MORE.

YEAH. I WANT TO DO ESPECIALLY TALK ABOUT THE CRUSHING RECYCLED ASPHALT.

SO ANYTIME THAT THE STREET DEPARTMENT GOES OUT AND DOES THESE MAJOR REPAIRS IN ALLEYS AND STREETS, WE AREN'T USING A MILLING MACHINE, AND SO WE'RE GETTING A LARGE CHUNK OF ASPHALT THAT STILL HAS VALUE TO US.

SO WE STOCKPILE IT. ONE OF TWO LOCATIONS, THE OLD CITY LANDFILL UP AT ECHO STREET IS ONE LOCATION AND THEN SOUTH HOLLYWOOD ROAD NEAR CITY VIEW, WE HAVE ANOTHER SITE, AND SO WHAT WE'RE PROPOSING HERE IS TO HAVE A CONTRACTOR COME IN CRUSH THIS MATERIAL.

FOR US, IT IS USED AS AN EXCELLENT MATERIAL FOR REPAIRING UNPAVED ALLEYS.

WE ACTUALLY EXPECT TO SEE A SAVINGS OVER THE MATERIAL WE TYPICALLY PURCHASE, WHICH IS A FLEXIBLE BASE MATERIAL.

IF I HAD THE CIP PRINT OUT IN FRONT OF ME, I CAN'T REMEMBER EXACTLY WHAT IT IS OFF THE TOP OF MY HEAD, BUT FOR THE AMOUNT OF MATERIAL THAT WE'LL BE GETTING, WE'LL SEE AN ACTUAL OVERALL SAVINGS BY USING THE CRUSHED ASPHALT, AND I ACTUALLY THINK IT'S A BETTER PRODUCT.

IT DOESN'T GET SLICK IN THE RAIN LIKE FLEX BASE DOES, AND WHEN IT GETS GOOD, GOOD HEAT ON IT IN THE SUMMERTIME, IT ACTUALLY CAN KIND OF SET UP A LITTLE BIT LIKE A HOT MIX SURFACE.

SO PRETTY EXCITED ABOUT THAT PROJECT.

DID YOU WERE YOU LOOKING THAT NUMBER UP, LAURA, WHAT THAT SAVINGS WAS? I DON'T KNOW THAT WE HAVE IT, BUT IT IS SAVINGS COMPARED TO WHAT WE'RE SEEING IN CURRENT FLEX BASED PRICES.

THE SECOND ONE, AND CHRIS MIGHT BE ABLE TO GIVE A LITTLE MORE INFORMATION ABOUT THIS THAN ME IS EQUIPMENT FOR AN ADDITIONAL HOT MIX LAYDOWN OPERATION.

SO AS WE SAW WITH BUYING THE SMALL PAVING MACHINE, WE'VE BEEN A LOT MORE EFFICIENT AT DOING LARGER REPAIR AREAS AND SO THE THOUGHT HERE WAS TO CREATE THE EQUIPMENT FOR AN ADDITIONAL CREW AND THEN COME BACK IN THE FUTURE TO TALK ABOUT THE EMPLOYEES, WHICH POTENTIALLY THAT MIGHT BE WHAT WE LOOK INTO FOR SOME OF THESE UNFILLED POSITIONS IS USING THOSE FOR THAT.

DO YOU WANT TO ELABORATE A LITTLE BIT MORE ON THAT? YES. CURRENTLY WE HAVE A TWO CREWS THAT GO OUT, ONE THAT TEARS OUT AND PREPS WORK IN THE STREETS AND ONE IN THE ALLEYS, BUT WE ONLY HAVE ONE LAYDOWN MACHINE CREW THAT WE HAVE TO SHARE BETWEEN THE TWO CREWS.

SO WHEN WE'RE LAYING AN ALLEY, WE'RE NOT ABLE TO LAY A REPAIR IN THE STREET.

THIS WOULD ALLOW US TO BE ABLE TO WORK AND DO THE MAJOR REPAIRS IN THE STREET AND THE ALLEY SIMULTANEOUSLY.

IN BOTH OF THESE THAT RESOURCE THERE IS TO ADDRESS THAT TIMEFRAME ON THOSE MAJOR REPAIRS.

KNOWING THAT ONE NEEDS TO HAVE SOME FORM OF IMPROVEMENT.

SO WE HAVE WE HAVE SEVEN MINUTES, WHICH REALLY MEANS WE HAVE MORE LIKE 15.

SO LET ME JUST GET US TALKING ABOUT LIKE MAYBE SOME CREATIVE SOME CREATIVE FINANCING OPTIONS, AND I KNOW THAT'S DANGEROUS TO SAY IT THAT WAY.

I PAUSED BECAUSE I THOUGHT I COULD COME UP WITH A BETTER WAY TO SAY IT, AND I COULDN'T.

[INAUDIBLE]. LET'S JUST SAY YES.

MODERN. WE HAVE SOME MODERN, ALL APPROVED WAYS.

[04:40:01]

0.398. THAT'S THE RATE TAX RATE, INCLUDING THE NINE PAGE CALCULATION THAT ALLOWS FOR THE 3.5%.

THAT IS CORRECT. THAT IS THE TOP END TAX RATE THAT YOU COULD USE, AND INSIDE OF THAT RATE, WE'RE GOING TO SAY WE FOUND $4.9 MILLION.

THAT'S NOT IN THIS BUDGET BOOK.

IT'S 3.9 IS NOT BUILT INTO THE BUDGET.

WE BUILT [INAUDIBLE]. YEP, EXACTLY.

SO NOT BEING SPENT IN THIS BUDGET BOOK IS 4.9 MILLION.

SO WE'RE BEING PRESENTED AND I JUST WANT TO GET A DISCUSSION OR NOT EVEN A DISCUSSION AS MUCH AS JUST LET'S START THINKING ABOUT AS WE COME BACK, WHAT I WOULD ANTICIPATE AND HOPE FROM THIS COUNCIL IS THAT YOU GUYS ARE GOING TO COME BACK AND SAY, WELL, I THINK THERE'S $2 MILLION OVER HERE THAT I'M GOING TO RECOMMEND AND EITHER RE REPOSITIONING OR CUTTING OR WHATEVER, AND SO HERE'S THE 7 MILLION AND THEN THESE ARE THE THINGS THAT I THINK IT REALLY NEEDS TO GO TO.

I'D LIKE TO GET TO THESE PROJECTS OR THIS STREET REPAIR OR WHATEVER.

SO AS YOU'RE PRESENTING A CO.

WHAT YOU HAD SAID.

IF YOU CAN TELL ME AGAIN.

A QUARTER OF A CENT.

IS THAT RIGHT? IS WHAT FUNDED HIS 3 MILLION, AND THAT WOULD MAKE SENSE.

I MEAN, ROUGHLY 13.3 MILLION FOR EVERY.

NO, THAT'S NOT RIGHT.

ARE YOU SAYING PERCENT IS ON A PROPERTY TAX RATE? WELL, YES.

DEBT SERVICE WHERE IT GETS CONFUSING NOT PERCENT.

I THINK WE SAID CENT.

SO A QUARTER OF A CENT RIGHT.

WAS WAS WHAT WAS NEEDED TO FUND THESE IN COS.

SO YOU'RE GETTING ABOUT A MILLION AND A HALF PER PENNY AND YOU NEED 225 FOR THIS DEBT ISSUANCE.

SO SORRY, I CAN'T DO MATH IN MY HEAD AND A HALF.

15 TENTHS OF A PENNY.

OKAY, SO.

15 TENTHS OF A PENNY FUNDS THE COS OR WE'RE JUST BEING PRESENTED WITH TWO DIFFERENT OPTIONS.

YOU KNOW ISSUE A CO AND RAISE YOUR TAX RATE ON TOP OF THE 3.5%.

RIGHT. WHICH WOULD BE IN ADDITION TO THE 0.398.

CORRECT. THAT IS CORRECT.

IT WOULD NOT HIT THIS FOR A YEAR EXACTLY.

YEP. IT WOULD HIT THE NEXT PROPERTY TAX RATE.

YOU'VE GOT THIS. OKAY, SO THAT'S HELPFUL, BUT THEN THE FUTURE COUNCIL, THEY ALREADY HAVE A TAX INCREASE THAT'S GOING TO GO AGAINST THEIR 3.5% WELL, NOT FUTURE COUNCIL BUT US.

IT WON'T FALL ON A 3.5% SIDE.

IT ROLLS ONTO THE DEBT.

THAT IS CORRECT. SO, YEP.

ALL RIGHT. SO THAT'S ALL VERY HELPFUL.

[SNEEZING] BLESS YOU.

OR THE OTHER SIDE IS GO SPEND THE $3 MILLION, RIGHT, JUST OUT OF CASH AND JUST GO GET TO ALL OF THOSE GRANTS WITH THOSE MATCHES.

NOW, I THINK WE'RE ALL IN FAVOR OF STREETS AND PROJECTS AND DEFINITELY TAKING FULL ADVANTAGE OF GRANT MATCHES.

SO DO WE HAVE ANY NEED TO TALK ABOUT TRYING TO WORK THAT IN THIS RATE TO WHERE YOU CAN KIND OF DO BOTH? IS THAT A POSSIBILITY? I'M NOT GOING TO BE THE ONE TO ANSWER THAT.

I KNOW IT'S OUT THERE, BUT I'M NOT.

SO IF I'M HEARING YOU, MAYOR, YOU WANT SOME COMBINATION OF CASH AND DEBT ISSUANCE TO MAXIMIZE THE ABILITY OF THAT FUND? IS THAT WHAT I'M HEARING? I'M JUST CURIOUS IF YOU SAID, WELL, YOU NEED TO ISSUE 15 TENTHS OF A PENNY, RIGHT.

SO THAT'S $0.15.

NO, 15 TENTHS OF ONE CENT.

YEAH, THAT'LL GET CONFUSING.

THAT'S LIKE GOING OUT FOUR DECIMAL PLACES.

YEAH, AND LET'S JUST SAY PHILOSOPHICALLY, WE DIDN'T WANT TO RAISE THE TAX RATE LIKE WE DON'T WANT TO BORROW MONEY ON OUR TAX PAYER IN ORDER TO GO DO THESE.

WE WANT TO WORK WITHIN THE CONFINES OF WHAT WE HAVE AS A VOTER APPROVED TAX RATE.

WELL, HOW DO I DO THAT WITHOUT BEING PINNED IN WHERE? WELL, THEN I JUST HAVE TO CASH FUND EVERY PROJECT.

IF YOU'RE AGAINST COS, WHICH TYPICALLY I THINK IF YOU HAVE THE CASH VERSUS BORROWING THE MONEY, CONSERVATIVE VALUES ARE LIKE, YOU KNOW WHAT, LET'S SPEND THE CASH THAT WE HAVE NOW.

LET'S NOT CONSTANTLY BORROW MONEY.

HOWEVER, SOMETIMES GOOD BUSINESS PRACTICES ARE TO LEVERAGE YOUR CASH FLOW, JUST LIKE WE'RE SEEING IN DRAINAGE.

DO I WANT TO GO DO $3 MILLION WORTH OF DRAINAGE OR DO I WANT TO GO DO $30 MILLION WORTH OF DRAINAGE? SO IN THIS SCENARIO, AND WHAT SKEWS IT A LITTLE BIT IS I DIDN'T I DIDN'T REMEMBER THAT IT DOESN'T HIT UNTIL THE FOLLOWING YEAR BUT LET'S JUST SAY IT'S A PRINCIPAL DECISION AND YOU WANTED TO INCORPORATE IT.

WOULD THAT MEAN YOU WOULD LOWER THIS? IN ORDER TO ADD THAT 15 TENTHS BACK INTO IT.

LOWER WHAT? THIS 398? NO. OKAY.

NO. SO HOW DO WE DO A COMBINATION THEN? OR IS THERE ANY SUCH THING? AND DID I THOROUGHLY CONFUSE ALL OF MY COUNSEL?

[04:45:01]

DO YOU ALL REMEMBER THIS SLIDE FROM YESTERDAY AND IT KIND OF SPLIT OUT YOUR OPERATING AND MAINTENANCE RATE AND YOUR INTEREST AND SINKING RATE? AND ON THAT VOTER APPROVAL TAX RATE, WE WERE LOOKING AT A LITTLE OVER $0.32 FOR OPERATIONS AND 7.75 CENTS ON THE INTEREST IN SINKING ON THE DEBT RATE.

SO IT WOULD BE THAT 7.75 NUMBER.

THAT WOULD GO UP TO SEVEN POINT, LET'S SEE HERE, NINE ZERO ESSENTIALLY RIGHT WITH NOT THIS YEAR, BUT IN THE NEXT YEAR IS ESSENTIALLY WHAT YOU'RE GOING TO BE LOOKING AT.

THAT RATE WILL LOOK DIFFERENT, THOUGH, BECAUSE YOUR APPRAISED VALUES WILL CHANGE, BUT LET'S JUST SAY EVERYTHING STAYS THE SAME.

IT WOULD GO UP TO ABOUT 7.9.

SO IF YOU REALLY WANTED TO KEEP FLAT FROM A FROM A TAX RATE STANDPOINT, YOU WOULD WANT TO BACK OFF A LITTLE BIT.

YOU COULD POTENTIALLY BACK OFF A LITTLE BIT ON THE O&M RATE.

SO BUT YOU COULD STILL GO AHEAD AND CAPTURE THE FULL AMOUNT.

IF I DID THAT, THOUGH, JUST TO WORK THE PROJECT OR THE PROBLEM OUT, DO I STILL HAVE THE 4.9 MILLION AND DID I STILL GET THE FULL AMOUNT OF THE CO? I DID. I GOT THE FULL AMOUNT OF THE COS.

YES, YOU WOULD FOR SURE, AND IF YOU LET'S SAY AND I WANT TO MAKE SURE I'M FOLLOWING YOU CORRECTLY, BUT IF YOU WANTED TO BALANCE THAT AND BACK OFF A LITTLE ON THE OPERATING AND MAINTENANCE SIDE, ESSENTIALLY YOU WOULD JUST BE CUTTING OUT FROM THE 4.9.

YOU JUST CUT IT DOWN BY 225,000.

DOES THAT MAKE SENSE? YES.

YEAH. SO WHAT I'M SAYING IN A VERY COMPLICATED WAY IS THAT IF WE AS COUNCIL COME TOGETHER AND WE SAY, LOOK, WE ARE GOING TO TAKE THE THREE AND A HALF PERCENT INCREASE ANNUALLY BECAUSE IF WE DON'T, THAT'S GOING TO FORCE US INTO TAKING A 13% INCREASE ALL AT ONCE, WHICH IS A LARGE TAX CONSEQUENCE ALL AT ONCE.

IT'D BE BETTER TO JUST KNOW, HEY, WE'VE LIMITED THIS, BUT WE'RE COUNTING ON THESE FUNDS AND WE'RE STEWARDING THAT MONEY WELL.

WHAT I THINK I WOULD LIKE TO NOT SAY IS, WELL, I'M TAKING THE 3.5% AND I'M GOING TO START ISSUING COS TO DO PROJECTS ON TOP OF THAT BECAUSE I HAVE GRANT FUNDING CAPABILITIES OR WHATEVER, AND SO A LOT LIKE MY $0.40 ON ON MY WATER BILL, I JUST DON'T LIKE THE PRINCIPAL THAT'S IN IT.

IF I HAVE THE CASH AND I'VE DONE A GOOD JOB OF WORKING THROUGH THIS.

HOWEVER, I DON'T NECESSARILY WANT TO BE A CASH ONLY ENTITY WHERE WE JUST NEVER LEVERAGE OUR BORROWING POWER.

SO AM I HELPING MY CASE HERE IN THE WAY OF WE WOULD WORK WITHIN OUR TOTAL RATE CALCULATION OF THE 3.5% INCREASE, BUT WE WOULD BACK DOWN WHATEVER THAT COST US OUT OF THAT 4.9 MILLION TO STILL ISSUE COS, BUT THEN WE'RE ISSUING A CO WITHIN OUR GIVEN TAX RATE.

THAT WOULD BE THE APPROVAL, AND WE AS COUNCIL ARE NOT ISSUING COS ON TOP OF THAT.

DOES IT DOES IT MATTER OR IS IT IS IT NOT, IS IT NOT CONSEQUENTIAL? AND DOES ANYBODY FOLLOW WHERE MY HEAD'S AT IN THAT? WE HAVE SIX MINUTES.

I DID WANT TO JUST SAY ON THAT 4.9, YOU'VE GOT A COUPLE OF OPTIONS LAURA HAD TOUCHED ON IT YESTERDAY WHEN WE WERE TALKING ABOUT COLA.

YOU CAN USE IT, AND STILL PRESERVE THE ABILITY TO IMPLEMENT COLA THE NEXT BUDGET.

NOT THIS BUDGET, BUT THE FOLLOWING YEAR'S BUDGET 2025 AND HAVE THE ABILITY AT THAT POINT TO GO TO THE 70% VERY LIKELY.

I DON'T WANT TO MAKE ANY GUARANTEES, AND THE WAY YOU DO THAT IS BY USING THAT 4.9 ON ONE TIME EXPENDITURES, NOT NECESSARILY WELL ON ONE TIME CAPITAL EXPENDITURES.

SO YOU CAN DO THAT.

YOU COULD ALSO THAT 4.9 IS ALSO ABOUT THE AMOUNT YOU WOULD NEED TO DO 50% THIS YEAR AND THEN YOU WOULD HAVE THE ABILITY TO INCREASE THAT NEXT YEAR TO GET TO 70.

SO YOU'VE GOT A NUMBER OF OPTIONS THERE ON HOW YOU GO.

I THINK BOTH OF THOSE OPTIONS ARE GOING TO ADDRESS YOUR RETIREES NEEDS.

ONE IS FASTER, BUT ONE WILL BE BIGGER.

SO I FOLLOW RIGHT WHERE YOU'RE GOING, MR. MILLER, AND I THINK I'M LOOKING AS WELL.

LIKE WE HAVE STREETS NEEDS.

WE NEED TO PLAN FOR GETTING THIS COLA BACK IN WHATEVER FORM OR FASHION.

WE'RE TRYING TO DO THAT, BUT THEN WE'RE ALSO GOING TO BE LOOKING AT POTENTIAL RAISES IN DIFFERENT DEPARTMENTS WHERE WE'RE NOT ABLE TO RETAIN OR WHERE WE KNOW WE'RE PAYING BELOW WHERE WE NEED.

WE HAVE A LOT AND I'M TRYING TO WORK WITHIN A FIXED REVENUE BUDGET.

I WAS CURIOUS IF THE CO MANIPULATION WITHIN THAT RATE FUNCTION, IT DOESN'T SOUND LIKE IT DOES.

IT GETS TREATED SEPARATE BECAUSE IT'S AN ISSUE.

NOW I WANT TO JUST TO MENTION, I THINK BASED ON THAT LOGIC, YOU WERE KIND OF FOLLOWING IF FOR INSTANCE, YOU SAID WE'RE GOING TO FOREGO, LET'S SAY, 225,000 BECAUSE WE'RE GOING TO BE

[04:50:04]

RIGHT? SO IF YOU FOREGO IT ON THE O&M SIDE OF THE RATE THIS YEAR, JUST REMEMBER THAT NOW SITS IN THAT UNUSED INCREMENT BUCKET THAT CAN BE CAPTURED, RECAPTURED AT SOME POINT OVER THE NEXT THREE YEARS AS WELL.

SO JUST KNOW YOU'RE GOING TO KEEP SEEING THAT AMOUNT, WHICH IS FINE.

IT'S JUST JUST KNOW IT'LL BE SITTING OUT THERE THAT IF IT IS NEEDED IN THE FUTURE.

OTHERWISE IF A FUTURE COUNCIL COMES ALONG, THERE WOULD BE THE POTENTIAL FOR THEM TO CAPTURE IT.

IT'S GOING TO BE FRACTIONAL AGAIN.

IT'S LIKE 0.15, SO 15/10 OF A PENNY.

SO BUT IT WOULD BE SITTING OUT THERE FOR THREE YEARS.

OKAY.

APPRECIATE YOU ALL LETTING ME WALK ALL THE WAY DOWN THAT ROAD.

LIKE, I'M NOT SURE THAT IT GOES ANYWHERE, BUT I NEEDED TO GO ALL THE WAY TO THE END OF IT TO SEE IF IT WAS A DEAD END.

OKAY SO BACK TO OUR CIP PART OF OUR STREETS AND KIND OF HOW WE'RE DOING THIS.

DO WE HAVE ANY OTHER OPTIONS IN THE FORM OF LIKE A HYBRID OF WHAT YOU'RE SAYING THAT YOU FEEL IS HEALTHY? OR WOULD YOU RATHER JUST RECOMMEND A CO OR A CASH? WELL THE RECOMMENDATION COMES WITH THE CASH AVAILABLE AS YOU SAID EARLIER, ANYTIME YOU HAVE THE CASH OPTION, THAT'S PROBABLY THE BETTER ROUTE TO GO ON BUT WHAT WE PROPOSED HERE WAS SO THAT BOTH GRANTS COULD PROCEED TIMELY.

SUCH THAT ONE IS CASH FUNDED AND ONE OF THOSE MATCHES IS DEBT FUNDED, AND THAT WAS TO MAKE SURE THAT WE PROCEEDED TIMELY ON THE PROJECTS THAT WAS THE PRIMARY CONSIDERATION ON THAT.

NOW REALIZE TOO, THAT WE ALSO HAVE IT'S WITHIN THIS BUDGET, LAURA, WHERE WE HAVE THE TRAINING FIELD AND THOSE.

YES, AND THOSE ARE ALL SET TO BE CASH FUNDED AS WELL.

YES. SO YOU'VE GOT OTHER GRANTS LIKE THE ONES THAT WE'RE TALKING ABOUT FOR THE FIRE TRAINING AND THE AND THE REGIONAL CRIME THAT ARE CASH FUNDED.

SO OUR PROPOSAL WAS THAT THE MOST LIKELY.

A PLACE TO ISSUE A DEBT WOULD BE ON A ROAD PROJECT, AND BECAUSE WE DIDN'T WANT A CHANCE OF DELAYING THOSE OTHERS IF THAT WENT FORWARD.

PLUS THE TIMEFRAME OF KNOWING ON THOSE IS A LITTLE LESS SOLID THAN THE ONES WE HAVE HERE.

SO THAT MADE THIS A PRIMARY DEBT CONSIDERATION, ALBEIT A SMALL ONE.

OKAY. YEAH, BECAUSE WE WON'T KNOW THE CRIME CENTER AND THE TRAINING FACILITY TILL END OF THE YEAR, AND THEN EVEN WHEN WILL WE GET THE FUNDING? MAYBE NEXT SUMMER.

SO IT'S PROBABLY GONNA BE A NEXT BUDGET PROJECT ANYWAY, BUT WE HAVE TO SHOW THAT WE HAVE THE MATCH.

OKAY, BUT THOSE HAVE A QUICK TURNAROUND IF THEY'RE APPROVED.

YEAH, THEY'RE SUPPOSED TO BE BUILT WITHIN A YEAR ONCE YOU GET THE FUNDING.

SO YEAH, VERY QUICK TURNAROUND.

THAT'S WHY THEY HAVE TO RESIDE IN THIS BUDGET IS BECAUSE IF THEY GET APPROVED, THERE'S A QUICK TURNAROUND AND IT DOESN'T REVOLVE AROUND OUR BUDGET.

YEAH, AND SO WE ESTIMATED THE BEST NUMBER WE CAN AT THIS POINT TO CAPTURE THOSE DOLLARS, AND IF IT COMES IN A LITTLE BIT DIFFERENT, WE WILL WORK QUICKLY TO FIGURE OUT HOW TO ADDRESS THAT. WE LOOKED AT IT AS A BUCKET OF MATCHING FUNDS AND WHERE WOULD BE THE MOST BENEFICIAL FOR THE CITIZENS TO ISSUE THE DEBT, BECAUSE THAT TIME FRAME OF ISSUING DEBT FOR THOSE TWO PROJECTS WOULD JUST KILL THEM.

IT WOULD JUST BE A NONSTARTER.

SO I THINK ALL IN ALL, IT'S PRETTY GOOD.

SO WE'VE GOT A FEW MINUTES TO GET OUT OF HERE AND WE PROBABLY NEED TO TALK ABOUT WHEN YOU ALL MIGHT BE ABLE TO MEET AGAIN.

I THINK IT'S GOOD. SO I GOT THE CALENDAR OPEN AND YOU AND I ARE HITTING IT RIGHT HERE.

SO, TODAY IS THE 10TH AND WE ARE LOOKING AT TUESDAY, THE 15TH COUNCIL MEETING.

THE FOLLOWING WEEK WE COULD LOOK AT RECONVENING, I WOULD SAY, WITH THE DEPARTMENTS AND THE BUDGETS THAT WE HAVE LEFT.

I THINK WE CAN GET THROUGH THAT WITHIN A DAY.

WOULD YOU SAY THAT PRETTY EASY? YES, BUT I THINK WE COULD GET THROUGH THE DEPARTMENTS AND THE BUDGET, BUT THEN GETTING FULL DIRECTION FROM YOU ALL ON WHERE YOU WANT TO GO.

WE MAY NEED A LITTLE MORE TIME.

WE I'M THINKING TWO DAYS GIVES US A DAY AND A HALF OF WORKING TO GET DONE THERE AND SO WE'RE EITHER LOOKING AT THE 22ND, 23RD OR THE FOLLOWING WEEK.

WE COULD LOOK AT THE EVEN THE 28TH, 29TH, 30TH, SOMEWHERE IN THERE.

SO IF WE WANTED TO GIVE ANYTHING INTO SEPTEMBER, THAT REALLY PUSHES US UP TO THAT 12TH DATE, THAT'S GOING TO BE REAL HARD TO GIVE YOU GUYS DIRECTION.

SO I WOULD SAY WE'RE EITHER 22ND, 23RD, 28TH, 29TH, 30TH.

WHAT ARE THE CONFLICTS AMONGST STAFF AND COUNCIL FOR THOSE OPTIONS? YOU'RE LEAVING ON THE 30TH.

WHAT DO YOU HAVE? YOU'RE GOOD ON THE 23RD AND 24TH.

[04:55:03]

THAT'D BE GREAT. WORK FOR YOU, TOM.

OKAY, SO THEN LET'S DO AGAIN KIND OF WHAT WE DID.

LET'S GO. LET ME LOOK HERE ON MINE.

YEAH. SO I JUST HAVE TO RESCHEDULE A FEW THINGS.

I THINK WE WOULD WE WANT TO DO.

SO 22ND NOT AVAILABLE FOR YOU.

CRAFT, ARE YOU WORKING? I JUST GOT TO MOVE A FEW.

I HAVE A BELL HELICOPTER ON THE 23RD THAT I'D NEED TO MOVE, AND THEN I'D HAVE PRPC BOARD MEETING THAT I'D MISS AGAIN.

PROBABLY COULD DO.

23RD, 24TH, 8 TO 5 ON THE 23RD.

EIGHT TO LUNCH.

HOPEFULLY IF WE COULD GET ALL OF OUR STUFF, BUT IF WE DIDN'T, WOULD WE BE WILLING TO COME BACK SINCE WE DON'T HAVE ANOTHER COUNCIL MEETING? YOU KNOW, COULD WE JUST COME BACK ON THAT FOLLOWING TUESDAY THE 29TH AS A FOLLOW UP? I WOULD I SURE WOULD HOPE WE COULD GET IT DONE.

YEAH THE 29TH THERE'S AN EARLY CONFLICT THAT DAY.

WE HAVE OUR HOSPITAL DISTRICT BOARD MEETING AND THEY'RE APPROVING A BUDGET THAT WILL COME TO YOU GUYS, BUT I THINK THEY'LL BE DONE AROUND 9:30.

[INAUDIBLE] YEAH, LET'S LES, I KNOW YOU GOT TO GO, SO LET'S DO THE 23RD, 24TH.

I'LL MOVE MY SCHEDULES AROUND IF STAFF WILL SEND OUT INVITES TO EVERYBODY.

UM, AND LET'S LET'S GO 8 TO 5 AGAIN ON THE 23RD.

PUSH HARD THE 23RD.

HOPEFULLY THE 24TH WILL BE A LIGHT DAY IF WE GET ALL THE WAY THROUGH IT, AND THEN REALLY WOULD WANT COUNCIL TO BRING BACK RECOMMENDATIONS OF, HEY, HERE'S WHAT I SAW WALKING THROUGH THIS. THIS IS THE MILLION DOLLARS THAT I THINK WE DON'T NEED OVER HERE, AND THIS IS WHERE I'D LIKE TO PUT IT, AND THEN REALLY GOOD DISCUSSION, DEBATE ON ALL THAT, AND WE'LL HAVE A GOOD COHESIVENESS TO SEND BACK TO LAURA AND LET HER PUT IT ALL BACK TOGETHER IN A COUPLE OF WEEKS AND WE'LL BE READY TO VOTE ON IT.

AGREED. FEES ARE ANOTHER THING FOR SURE.

YES. WANT TO GET ALL THE WAY THROUGH ALL THE FEE STRUCTURES AND KNOW WHERE WE'RE GOING.

CAN I REQUEST ONE PIECE OF INFORMATION? AS LONG AS IT DOESN'T REQUIRE MORE THAN AN HOUR TO PUT TOGETHER? SURE. [CHUCKLING] EVERYBODY HAS ASKED THIS QUESTION, BUT COULD WE GET A LIST OF BUDGETED POSITIONS OF VACANCIES BY DEPARTMENT? I THINK, BECAUSE EVERYBODY'S ASKING THE QUESTIONS AND WE KNOW INDIVIDUALLY, BUT I THINK IT WOULD BE JUST GOOD FOR US TO HAVE A SUMMARY OF ALL THE DEPARTMENTS, WHAT THEIR BUDGETED AND WHAT CURRENT VACANCIES ARE.

SURE, AND WE HAVE AN FTE REPORT, AND IF YOU ALL ARE GOOD, I'LL JUST HAND OUT A COPY OF IT THAT MAYBE YOU ALL CAN TAKE WITH YOU.

THAT MIGHT HELP A LITTLE BIT TOO, BUT YES, WE'LL WORK.

I THINK WE CAN GET THAT DONE FOR YOU.

SO I DO HAVE A CLARIFICATION FOR COUNCILMAN TIPPS, AND I CAN'T REMEMBER WHAT YOU SAID THAT WAS SO FAR OUT THERE EARLIER THAT YOU SAID IT.

OH, YOU WANTED TO CALL PRIVATELY TO OUR COMPETITORS.

THAT'S WHAT YOU SAID. THIS GOES HAND IN HAND WITH THAT.

COUNCILMAN TIPPS WOULD LIKE TO KNOW, IS HE BEING PAID $10 EVERY MEETING HE ATTENDS? OR IS IT JUST $10 TWICE A MONTH? VALID QUESTION. ONLY REGULAR MEETINGS.

I KNOW THAT'S A BUDGETARY ISSUE [INAUDIBLE] ARE OUT OF THE KINDNESS OF YOUR HEART.

SO THE MORE MEETINGS WE SCHEDULE FREE FOR US.

YEAH. YEAH. ANY OBJECTIONS TO.

TO BEING ADJOURNED? MR. CRAFT.

GO AHEAD, MOTION IT.

I MOVE TO ADJOURN THE MEETING.

NO OBJECTIONS.

I'LL SECOND. WE'RE ADJOURNED.

THANK YOU ALL. APPRECIATE EVERYBODY BEING HERE.

* This transcript was compiled from uncorrected Closed Captioning.