Mar 10, 2026 City Council Special Meeting

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CITY MANAGER, HOW ARE YOU DOING OVER THERE? I AM GOOD, THANK YOU. GOOD, GOOD. TODAY IS THE 10TH DAY OF MARCH. WE'RE SITTING AT THE AMARILLO CITY HALL COUNCIL CHAMBER. WE'RE

[1. This item is a pre-budget planning workshop for the City Council and senior staff to discuss and review financial conditions, service levels, capital needs, and policy priorities in preparation for the development of the City of Amarillo budget for fiscal year 2026/2027. The City Council may discuss numerous broad topics such as public safety, infrastructure, development, community services, parks and recreation, water resources, public works, finance, council pillars, strategic plans, legislative agendas, policies and procedures, and other matters related to future budgeting and long-term financial planning. The discussion is intended to provide direction and general consensus on priorities to be used in the preparation of a future proposed budget; no proposed budget will be presented, considered, adopted, or voted on at this workshop, and no final decision or vote on the budget will occur.]

MAYOR, MEMBERS OF COUNCIL, I APPRECIATE YOUR ATTENDANCE TODAY. I KNOW THIS IS EARLIER THAN NORMAL FOR A COUNCIL MEETING, BUT I... I APPRECIATE YOU ALL BEING HERE TODAY. SO WE CAN COVER SOME A LOT OF BUDGET GROUND AND PREPARATION FOR THE BUDGET PROCESS THIS SUMMER. ALSO IN THE ROOM TODAY, OF COURSE, WE HAVE OUR CITY MANAGEMENT TEAM, BUT ALSO BEHIND ME, WE HAVE A LOT OF OUR EXPERTS IN OUR DEPARTMENTS. DEPARTMENT HEADS ARE HERE TODAY.

EVENTUALLY, WHEN WE GET DOWN TO THE COST RECOVERY SECTION, WE WILL COVER SPECIFIC DEPARTMENT RECOMMENDATIONS OR SUGGESTIONS OR IDEAS FOR POSSIBLE COST RECOVERY OPPORTUNITIES. AND I WILL TRY MY BEST TO POWER THROUGH THOSE ON MY OWN, BUT AS YOU HAVE QUESTIONS, THINGS THAT I CAN'T ANSWER, I'M GOING TO QUICKLY DEFER TO THE EXPERT. AND SO THEY ARE HERE TO HELP US WITH THAT. SO WITH THIS, I THINK YOU'LL RECALL BACK ON FEBRUARY 12TH, I GAVE YOU ALL THIS REPORT, 23 PAGES FOR THE PRE-BUDGET WORKSHOP. I SENT IT BACK OUT AGAIN FRIDAY. MY GOAL TODAY IS TO KIND OF GO IN ORDER OF THAT. THOSE ARE THE TOPICS WE WILL COVER TODAY.

IN TODAY'S PRESENTATION. SO LOOKING AT, LOOKING AT, OF COURSE, I SEND THESE SLIDES OUT TO YOU ON FRIDAY AS WELL, SO I KNOW YOU GUYS HAD A LOT OF THINGS TO LOOK OVER BEFORE TODAY'S COUNCIL MEETING, SO HOPEFULLY YOU HAD A CHANCE TO GLANCE OVER THE SLIDES, BUT HOPEFULLY YOU HAD A CHANCE TO GLANCE OVER THE REPORT BEFORE THIS. MY INTENT TODAY, I'M NOT GOING TO REGURGITATE EVERYTHING IN THIS REPORT HERE. I THINK I'M JUST GOING TO TRY TO POWER THROUGH IT AND TRY TO GET TO THE HIGHLIGHTS. I HAVE A NUMBER OF SLIDES TODAY. I'M GOING TO DO SOME TALKING, BUT MY GOAL IS TO, AT CERTAIN POINTS IN TIME, STOP AND GET YOUR DIRECTION.

ONE OF THE THINGS I AM ASKING FOR TODAY, AS YOU LOOK AT SOME OF THESE TOPICS HERE, IS DIRECTION, TANGIBLE, SPECIFIC DIRECTION, SO THAT WE KNOW AS STAFF WHERE YOU WANT US TO GO, WHAT YOU WANT US TO DO AS WE PREPARE FOR THE BUDGET PROCESS THIS SUMMER. SO THAT'S WHAT I'LL BE ASKING TODAY. NOW, OBVIOUSLY, I'M NEVER... I'M NOT GOING TO FORCE YOU, I'M NOT TRYING TO FORCE YOU TO GIVE ME A DECISION, SO IF YOU NEED TIME, YOU NEED ADDITIONAL TIME, WE CAN COME BACK IN A COUPLE WEEKS OR FOUR WEEKS, AND WE CAN DO THAT ON SOME OF THESE TOPICS HERE.

BUT I THINK, I KNOW YOU GUYS HAVE HAD A MONTH OR SO TO WORK ON THIS, I KNOW MANY OF US HAVE TALKED ONE-ON-ONE ON ABOUT MANY OF THESE TOPICS HERE, BUT WHETHER IT'S VADER, WHETHER IT'S COST RECOVERY, WHETHER IT'S PRESENTATION THIS SUMMER, SO MANY OF Y'ALL HAVE BEEN TALKING ABOUT THIS FOR ABOUT SIX MONTHS OR SO. SO I'M HOPING TODAY WE MIGHT BE ABLE TO COVER A LOT OF GROUND AND GET SOME GOOD DIRECTION FOR STAFF AND MYSELF.

ON THE AGENDA TODAY, A FEW OF THE TOPICS WE'RE GOING TO COVER, AGAIN, FOLLOWING ALONG WITH MY REPORT. I'LL BE, AGAIN, DISCUSSING ABOUT OUR NEW CHIEF FINANCIAL OFFICER. THEN WE'RE GOING TO WORK OUR WAY BACKWARD IN TIME. WE'RE GOING TO GO FORWARD TO FISCAL YEAR 27-28, TWO YEARS FROM NOW. I'M GOING TO GIVE A LITTLE BIT OF CONVERSATION, A LITTLE BIT OF VISION WHEN IT COMES TO THAT BUDGET PROCESS. THAT ASSUMES A NEW CFO IN PLACE AND HER HAVING HAD ABOUT A YEAR UNDER HER BELT.

WE'RE THEN GOING TO BACK UP A FEW MONTHS AND GO TO NOVEMBER, AND WE'LL LOOK AT A POSSIBLE VOTER-APPROVED TAX RATE ELECTION, OR WHAT I LIKE TO CALL A VADER, AND WE'LL BE DISCUSSING THAT.

THAT HAS BEEN A TOPIC THAT SEVERAL OF YOU HAVE TALKED ABOUT WITH ME. THAT'S SOMETHING WE EVEN TALKED ABOUT IN LAST YEAR'S BUDGET CYCLE, AS WE LOOKED AT THE CONSTRAINTS THAT WE'RE UP AGAINST AS A CITY. WHILE TRYING TO PROVIDE SERVICES TO OUR TAXPAYERS AND OUR PATRONS OF OUR COMMUNITY. WE WILL THEN BACK UP EVEN MORE TO THE BUDGET PRESENTATION THIS SUMMER. AS YOU KNOW, UNDER STATE LAW, WE WILL PRESENT TO YOU ALL A BUDGET AROUND JULY, AUGUST OR SO.

BUT MY GOAL FOR TODAY IS TO GET SOME GUIDANCE FROM YOU ALL AS TO WHAT YOU WOULD LIKE US, HOW YOU WOULD LIKE THAT TO BE PRESENTED TO YOU, WHETHER IT'S CERTAIN TYPES OF REPORTS, DATA, INFORMATION, EVEN SPECIFIC, LIKE ACTUALS, PERCENTAGES, FORECASTS, THOSE KIND OF THINGS. MY GOAL TODAY, AND WE HAVE PEOPLE HERE TAKING NOTES TODAY, IS TO GET FROM YOU ALL SOME DIRECTION.

THAT HOW YOU WOULD LIKE TO SEE THE BUDGET PROCESS WORK THIS SUMMER. NOW, WITH ALL THAT BEING SAID, AND I'LL TALK ABOUT THIS IN A MOMENT HERE, WE HAVE A NEW CFO COMING ON BOARD. AND SHE'LL BE TAKING LOTS OF NOTES. THERE'LL BE A LOT OF LESSONS LEARNED THIS SUMMER.

HER GOAL IS TO USE THIS YEAR AS A BRIDGE YEAR TO GET US INTO A NEW BUDGET CYCLE NEXT YEAR, A NEW BUDGET PROCESS. AND I'LL TALK ABOUT THAT LATER ON IN THE SLIDES AS WELL. THEN WE'LL CLOSE TODAY. THE MAJORITY OF MY SLIDES, ABOUT OVER HALF THE SLIDES, ARE ON COST RECOVERY OPPORTUNITIES.

SO THE FIRST, WELL, THE MIDDLE THREE TOPICS THERE ARE ABOUT PROPERTY TAXES PRIMARILY, AND BUDGET. AND THEN THE LAST ONE IS NON-PROPERTY TAX, LOOKING AT... OTHER REVENUE STREAMS TO HELP SUBSIDIZE OR DIMINISH THE NEED FOR PROPERTY TAXES. THAT IS COST RECOVERY OPPORTUNITIES.

ONE OF THE THINGS, THIS COMES BACK TO THE FAMOUS GOLF BALL DISCUSSION. AND SO,

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IT'S ANOTHER BIG TRIP, SO SHE'S EITHER GOING TO WATCH, SHE'S EITHER WATCHING RIGHT NOW, OR SHE SAID SHE WOULD WATCH THE RECORDING AFTERWARDS.

SO SHE CAN START GETTING HER MIND READY TO GO FOR THE BUDGET PROCESS THIS SUMMER. SOME OF THE THINGS THAT I'VE ASKED HER TO BE PREPARED FOR, AND SOME THINGS THAT I'LL BE SITTING DOWN WITH HER. MORE, SOME OF HER IMMEDIATE TASKS, IMMEDIATE RESPONSIBILITIES, STARTING IN APRIL, WHEN SHE GETS HERE, IS, OF COURSE, THE BUDGET. SHE'LL BE LEADING THAT PROCESS. AS A CFO, I DO EXPECT THE CFO TO BE THE POINT PERSON FOR BUDGET PREPARATION AND BUDGET PROCESS. THAT ALLOWS ME TO CONTINUE TO DO MY SERVICES TO THE COUNCIL AS CITY MANAGER, AND SHE IS BUSY BEHIND THE SCENES, WORKING ON BUDGET, GETTING ALL OF THE... ALL THE WORK DONE WITH DEPARTMENTS AND WITH ALL THE NUMBERS TOGETHER.

PARALLEL TO ALL THIS, SHE'LL BE WORKING ON, OR MAYBE TOWARDS THE END OF THE BUDGET PROCESS, WORKING ON COMPLETING OUR WORKDAY TRANSITION. WE'VE BEEN DOING THAT FOR A FEW YEARS AS WE'VE TAKEN IT IN STAGES. AND SO THERE'S A LOT OF WORK TO BE DONE TO FINALIZE THE WORKDAY FINANCIAL SYSTEM TRANSITION. SHE'LL BE WORKING ON THAT. AND, OF COURSE, AS ALWAYS, ONE OF THE KEY FINANCES, ONE OF THE BACKBONES OF THE CITY, IT CONNECTS, IT TOUCHES EVERY DEPARTMENT.

AND SO COORDINATION IS CRITICAL. SO SHE'LL BE MAKING CONNECTIONS, FORMING RELATIONSHIPS, GETTING TO KNOW DEPARTMENT HEADS. AND SO SHE WILL HAVE A FULL PLATE ON HER, SHE'LL HAVE A FULL PLATE, BASICALLY. SO WITH THIS, I WOULD LIKE TO JUST GO AHEAD AND ASK ON HER BEHALF, THIS WOULD BE A BIG LEARNING CURVE FOR HER THIS SUMMER. I MEAN, OBVIOUSLY, IF I COULD HAVE BROUGHT HER HERE SOONER, I WOULD HAVE.

SHE'S GOT A LOT, SHE'S GOT A LOT TO LEARN IN A SHORT AMOUNT OF TIME. SO AS MUCH GRACE AND FLEXIBILITY THE COUNSELOR CAN GIVE HER.

THAT WOULD BE MUCH APPRECIATED, AS I WILL BE GIVING TO HER AS WELL. SHE COMES TO A GREAT TEAM. WE HAVE A GREAT TEAM OF STAFF HERE, FROM THE CMO TO THE FINANCE DEPARTMENT TO THE STAFF IN THE DEPARTMENTS, AND SO THEY WILL DO A GREAT JOB OF HELPING HER. BUT, AGAIN, SHE HAS A VERY CRITICAL ROLE THAT SHE'S TAKING ON, THAT SHE HAS TO SHOULDER HERSELF.

BUT WE WILL BE RIGHT THERE TO HELP HER AS MUCH AS WE CAN ALONG THE WAY. SO WE'LL BE EXCITED TO HAVE HER HERE, AND SHE HAS A LOT TO LEARN, AND I KNOW SHE'S MORE THAN CAPABLE OF DOING THAT. SO WE HAVE A GOOD PERSON COMING TO WORK FOR US. IN ADDITION TO THAT, LOOKING TO THE FUTURE, AGAIN, THIS GOES INTO THE NEXT SLIDE HERE IN A MOMENT. ONE OF MY GOALS FOR HER IS TO BE THINKING ABOUT THE NEXT YEAR'S BUDGET CYCLE.

OBVIOUSLY, RIGHT NOW, WE'RE IN MARCH, GOING INTO APRIL.

WE'RE NOT IN THE FINAL HOUR, OBVIOUSLY, BUT AT THE SAME TIME, WE'RE A LITTLE LATE TO. MY GOAL FOR A FUTURE PROCESS FOR BUDGET. MY VISION, MY GOAL FOR OUR BUDGET PROCESS IS TO GET US OUT OF THE SUMMER.

COMPRESSED PERIOD, AND MORE INTO A JANUARY TO SEPTEMBER TIMELINE. OBVIOUSLY, AUDIT TAKES PRIORITY DURING JANUARY THROUGH MARCH. THAT IS HIGH PRIORITY. WE HAVE TO GET THAT DONE, ESPECIALLY UNDER S.B. 1851. WE HAVE 180 DAYS TO GET AUDITS DONE. AND SO THAT HAS TO BE THE PRIORITY.

BUT PARALLEL TO ALL THAT, I WOULD LIKE FOR HER AND HER TEAM TO BE LOOKING AT A CALENDAR, A NEW TYPE OF CALENDAR THAN WHAT WE HAVE RIGHT NOW. THAT BRINGS COUNCIL MORE INVOLVED IN THE BUDGET PROCESS. AND I'LL TALK ABOUT THAT MORE SHORTLY.

ALL RIGHT, MOVING ON TO OUR NEXT TOPIC HERE, WHICH IS THAT VERY THING. SO MY VISION, AGAIN, MY GOAL FOR THE CFO IS TO LOOK AT DEVELOPING A NEW CALENDAR FOR THE BUDGET PROCESS, STARTING IN 27-28 CYCLES. SO NOT THIS SUMMER, BUT THE NEXT SUMMER. SO SHE'LL BE, AS SHE GOES THROUGH THIS BUDGET PROCESS THIS YEAR, I'M SURE SHE'LL BRING SOME GREAT IDEAS WITH HER, SOME DIFFERENT WAYS OF DOING THINGS. BUT A LOT OF THIS IS GOING TO COME FROM TALKING TO YOU ALL, GETTING TO KNOW YOUR PREFERENCES, GETTING TO KNOW WHAT YOU ALL LIKE TO SEE DONE. AND TALKING TO MYSELF AS MANAGER AND STAFF AND GETTING SOME DIRECTION, GETTING SOME IDEAS. SO THAT COME NEXT YEAR. SHE CAN COME WITH A DIFFERENT WAY OF DOING THINGS OR DIFFERENT VISION ABOUT DOING OUR BUDGET PROCESS.

AND THEN THE KEY POINT HERE THAT I LIKE TO SEE MORE OF IS MORE COUNCIL ENGAGEMENT, MORE CITY MANAGEMENT ENGAGEMENT ALONG THE WAY. SO THAT WAY, COME SUMMERTIME, WHEN YOU ALL ARE GIVEN THE BUDGET, AGAIN, THIS IS MY VISION, MY GOAL, WHEN THE COUNCIL IS GIVEN THE BUDGET COME SUMMERTIME, STARTING NEXT YEAR, YOU WILL HAVE ALREADY HAD A FEW TOUCH POINTS

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DOING ALL THE LITTLE THINGS IN ORDER TO KEEP THIS BOAT ROWING AND KEEP THIS BOAT GOING FORWARD. BUT WITH THIS, IT WOULD BE NICE TO GET COUNCIL ENGAGEMENT ALONG THE PROCESS, ALONG THE WAY. SO TO DO THIS, AGAIN, I SEE THIS SUMMER AS BEING MORE OF A BRIDGE YEAR. SHE WILL BE COMING IN, AGAIN, A BIG LEARNING CURVE, A LOT TO LEARN IN THE PROCESS. SHE HAS TO LEARN TEXAS STATE LAW.

SHE HAS TO LEARN OUR PROCESS.

WE STILL HAVE A FAIRLY NEW TEAM. THEY'RE DOING A GREAT JOB. THAN FINANCE, BUT STILL, MANY OF THEM ARE LESS THAN FIVE YEARS OF EXPERIENCE. AND SO YOU WOULDN'T KNOW THAT BY LOOKING AT THEM, BUT BOY, THEY WORK HARD AND THEY'RE DOING THE BEST THEY CAN TO BRIDGE THAT CURVE AS FAST AS THEY CAN. SO AGAIN, THIS YEAR, THIS SUMMER, SHE'LL BE BRINGING IDEAS, BUT WE'LL GET THROUGH THE SUMMER YEAR, BUT THEN LOOKING AT IDEAS TO HOW TO REDESIGN OUR BUDGET PROCESS STARTING NEXT YEAR.

ALL RIGHT. SO MOVING ON TO MY THIRD TOPIC TODAY. WE'LL HAVE A FEW SLIDES HERE.

DURING THE LAST BUDGET CYCLE, THE CITY COUNCIL, WE DISCUSSED SOME OF THE CONSTRAINTS THAT WE EXPERIENCED. AND THERE WERE CERTAIN GOALS THAT COUNCIL WOULD HAVE LIKED TO HAVE SEEN. THERE WERE CERTAIN GOALS THAT STAFF WOULD HAVE LIKED TO HAVE SEEN.

BUT OBVIOUSLY, MONEY WAS A PROBLEM. WE DIDN'T HAVE THE BUDGET ROOM TO GET EVERYTHING DONE. AS PART OF THAT PROCESS, THE COUNCIL DID DISCUSS THE VOTER-APPROVED TAX RATE ELECTION, WHICH IS A VADER. AND SO THAT WAS DISCUSSED, AND COUNCIL, AS I RECALL, THEY DID DIRECT THAT. WE WOULD HAVE A CONVERSATION EARLY THIS CALENDAR YEAR IN PREPARATION FOR THE SUMMER, SO THAT WE CAN MAKE SOME DECISIONS ON ARE WE GOING TO DO THIS OR NOT. SO I HAVE A FEW SLIDES HERE TO TALK ABOUT EVADER, AND THEN AT THE END OF THESE SLIDES, I'D LIKE TO THEN HELP FACILITATE A CONVERSATION AMONG YOU TO KIND OF GET SOME DIRECTION AS TO WHAT YOU WOULD LIKE TO DO.

WHEN IT COMES TO A VOTER-APPROVED TAX RATE ELECTION. A LITTLE BIT OF CONTEXT. S.B. 2, 2019, TEXAS TRUTH IN TAXATION LAW. A NUMBER OF THINGS CAME OUT OF THAT LEGISLATION, BUT THE MAIN THING THAT IMPACTS US TODAY IS THE VOTER APPROVAL.

TAX RATE CAPS ANNUAL PROPERTY TAX SO THAT IT CANNOT GROW BEYOND 3.5%. THAT'S ON THE M&O, MAINTENANCE AND OPERATIONS SIDE. NOW, IT IS NOT A SIMPLE, CLEAR-CUT 3.5%. IF YOU LOOK AT THE TRUTH IN TAXATION FORM, IT'S ALMOST 90 LINES OF CALCULATIONS THAT THE COMPTROLLER AND THEM EXPECT YOU TO COMPLETE. SO THERE ARE CERTAIN EXCEPTIONS THAT THEY APPLY TO THAT. THERE ARE CERTAIN, I MEAN, THIS IS LIKE, WHEN YOU DO YOUR TAXES, THERE ARE DEDUCTIBLES. THERE'S DIFFERENT THINGS, DEDUCTIONS, THERE ARE THINGS THERE THAT YOU DO THAT IMPACT THAT.

BUT OVERALL, FOR SIMPLISTIC PURPOSES, 3.5% IS THE FIGURE THEY GAVE US TO WORK WITH. ANY RATE ABOVE THAT MUST GO TO THE VOTERS FOR APPROVAL. SO LET'S SAY THAT THE COUNCIL ONE YEAR SAYS, YOU KNOW WHAT, I'VE SEEN OUR EXPENSES, I'VE SEEN OUR GOALS, THE COUNCIL HAS A VISION FOR THE CITY, AND WE DON'T HAVE ENOUGH MONEY.

WE NEED 5%. 3.5 IS NOT GOING TO GET IT DONE.

BETWEEN WHAT WE WANT TO DO FOR PUBLIC SAFETY OR STREETS OR RECREATION, IT ALL ADDS UP.

AND I NEED MORE MONEY. WELL, AGAIN, YOU CAN DO 3.5%, BUT IF YOU WANT TO GO TO 5, THAT EXTRA 1.5 HAS TO GO TO THE VOTERS IN NOVEMBER FOR AN ELECTION. THEY HAVE TO GIVE YOU PERMISSION TO GO BEYOND 3.5% FOR THE M&O. NOT INS, BUT M&O. NOW, WITH THAT... THE PROPOSITION GOES IN NOVEMBER, CITIZENS REVIEW IT, THEY DECIDE WHETHER THEY'D LIKE TO APPROVE IT OR NOT. IF THEY APPROVE IT, YOU THEN HAVE THE INCREASED PROPERTY TAX VALUE GOING FORWARD, THAT IS YOUR NEW BASE GOING FORWARD.

IF IT FAILS, YOU GO BACK DOWN TO THE 3.5 VOTER APPROVED TAX RATE POINT. SO YOU FALL BACK TO THAT POINT. THAT IS THE CONTEXT OF THE TRUTH IN TAXATION LAW. WHY DOES THIS MATTER TO US TODAY? WHY DOES SB2 MATTER? WELL... AS I THINK, ALL INDUSTRIES, ALL BUSINESSES, ALL HOMES, EVERYONE WITH A BUDGET UNDERSTANDS. TODAY, PARTICULARLY DURING TIMES OF WAR, DURING TIMES OF ECONOMIC INSTABILITY, DURING TIMES OF POLITICAL SHIFTING BACK AND FORTH, DIFFERENT PRESIDENT, DIFFERENT PRESIDENT, COSTS CHANGE, INFLATION OCCURS. BUSINESS DOES NOT, COST FOR BUSINESS CHANGES YEAR, IF NOT MONTH TO MONTH. I MEAN IT. I DRIVE A DIESEL TRUCK. I'M NOW PAYING ALMOST $1.50 NOW THAN I WAS A WEEK AGO IN GAS.

AND SO WE CAN SEE HOW THINGS CHANGE QUICKLY.

UNFORTUNATELY, SO WITH US, SB2 CAPS OUR ABILITY TO RAISE REVENUE. NOTHING CAPS

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OUR COSTS ARE NOT LIMITED TO THE REVENUE CAP THAT WE HAVE.

SO PART OF THAT, WE HOPE AND PRAY, AND WE DO THE BEST WE CAN.

THROUGH OTHER PROGRAMS, TO TRY TO ENCOURAGE SALES TAX, TO TRY TO ENCOURAGE GROWTH AND SO FORTH. BUT THOSE THINGS, AS YOU KNOW, YOU CANNOT SET A SALES TAX. AT A HIGHER RATE THAN YOU WANT TO.

WE'RE ALREADY MAXED OUT. YOU CANNOT CONTROL CERTAIN ELEMENTS. PROPERTY TAX IS THE ONLY THING THAT YOU HAVE A DIRECT CONTROL OVER. SO IF SALES TAX IS FLATTENED OUT, IF OTHER REVENUE STREAMS ARE FLATTENED OUT, AND IF PROPERTY TAX IS CAPPED AT 3.5%, AND YOUR EXPENSES GO UP 5%, 10%, 20%, WHATEVER IT IS, YOU'RE LOOKING AT EITHER CUTTING TO MAINTAIN OTHER SERVICES OR DOING LESS.

THAT IS THE SIMPLE TRUTH OF IT. SO PART OF THE PROBLEM WE HAVE WITH THIS IS, AS WE HAVE COME INTO, AS CITIES AND TEXAS ARE SEEING MORE AND MORE, IS IT IS BECOMING HARDER AND HARDER TO JUST MAINTAIN EXISTING SERVICES. IT IS HARD TO KEEP EXISTING STAFF. IT IS HARD TO CONTINUE TO PROVIDE THE SAME SERVICE.

CONTRACTOR PRICES GO UP.

CONSULTANTS GO UP. CONSUMABLES GO UP. SOFTWARE IS REALLY GOING UP. SO THAT'S ONE THING WE'RE SEEING IN IT. RICH HAS TOLD ME HERE RECENTLY THAT WE HAVE SOME RENEWALS THAT ARE 50% INCREASES NEXT YEAR. WE'RE SCRAMBLING TO FIGURE OUT HOW WE'RE GOING TO DO THAT. AND IN TODAY'S IT WORLD, IT IS NOW BECOMING ALMOST A NEW BACKBONE FOR ENTITIES. IF YOU DO NOT HAVE A STRONG BACKBONE IN IT, YOUR BODY'S GOING TO FAIL.

THERE'S A LOT OF HACKERS, A LOT OF DANGERS OUT THERE, SO WE HAVE GOT TO STAY ON THE CUTTING EDGE WHEN IT COMES TO IT. OTHERWISE, WE COULD BE COMPROMISED AND OUR OPERATIONS COULD FALL FLAT. SO WITH THIS, THE ONE MECHANISM WE HAVE AVAILABLE TO US, GIVEN YOU ARE CAPPED AT 3.5% FOR M&O, THE ONE MECHANISM YOU HAVE IS VOTER-APPROVED TAX RATE. ELECTION IS WHAT YOU HAVE. AND WE WILL BE COVERING THAT MORE IN THE NEXT SLIDES HERE. SOME MORE WHY DOES THIS MATTER.

LOOKING AT THIS, AS YOU ALL KNOW, YOU GOT INTO OFFICE WITH THE GOAL OF SERVING THE PUBLIC. I THINK ALL OF US HERE TODAY, FROM THOSE WHO ARE COUNSELED TO THOSE WHO ARE STAFFED, WE ARE HERE TO SERVE THE PEOPLE. WE ARE HERE TO BETTER THEIR LIVES. WE ARE HERE TO PROVIDE THE FOUNDATION SO THAT OUR COMMUNITY CAN GROW, CAN THRIVE, AND BE THE BEST THAT THEY CAN.

THAT IS WHY WE'RE HERE. NO ONE IS HERE TODAY TO MAKE THINGS WORSE. NO ONE IS HERE TODAY TO SEE OUR COMMUNITY FAIL. SO WITH THIS, WE UNDERSTAND THAT CITIZENS HAVE EXPECTATIONS OF US. THEY EXPECT CERTAIN THINGS FROM THE CITY. AS THEY DO THE COUNTY, THE STATE, THE SCHOOLS AND SO FORTH, WE HAVE A ROLE IN THEIR LIFE.

WHETHER THEY REALIZE IT OR NOT, WHETHER THEY APPRECIATE IT OR NOT, WE HAVE A ROLE TO PLAY.

AND WITH THAT, AS YOU KNOW WITH CITIZENS, THEY EXPECT THE BEST. THEY EXPECT THINGS IMMEDIATE. THEY EXPECT THINGS TO BE TO THE HIGHEST QUALITY. THEY EXPECT PROFESSIONALISM, RESPECT, INTEGRITY. THOSE THINGS, UNFORTUNATELY, IN TODAY'S ECONOMY, ARE NOT CHEAP. THOSE THINGS ARE NOT EASY TO COME BY. THOSE THINGS COME WITH EXPENSE, WITH THAT. SO AS WE CONTINUE TO SEE EXPENSES RISE AT RATES THAT ARE NOT SUBJECT TO THE SAME CAPS THAT WE HAVE, AS WE CONTINUE TO TRY TO MAINTAIN SERVICES, LET ALONE GROW SERVICES, I KNOW ONE THING THAT WE WISH TO DO IS TO MAKE THINGS EVEN BETTER, TO BE ABLE TO RESPOND FASTER, TO DO MORE, TO BE MORE ON POINT. AS WE TRY TO DO THESE THINGS AS SALES TAX, I MEAN, SALES TAX IS GROWING, WHICH IS GREAT, BUT IT'S NOT GROWING AS FAST AS WE WANT IT TO. AS OTHER FEES ARE EITHER STAGNANT OR FLAT, OR HAVE NOT BEEN UPDATED IN YEARS AND YEARS, AND WE'LL TALK ABOUT THAT IN COST RECOVERY A LITTLE BIT LATER, AS THOSE THINGS ARE STAGNANT, OUR ONLY OPPORTUNITY AVAILABLE TO US IS PROPERTY TAX.

BUT AGAIN, THAT IS CAPPED. SO THAT IS ONE OF THE CONSTRAINTS WE ARE EXPERIENCING. SO, A FEW TANGIBLE... IMPACTS THIS HAS GIVEN TO US. I KNOW PEOPLE WANT TO KNOW, OKAY, GRAYSON, TELL ME HOW, OKAY, YOU SAY WE'RE CONSTRAINED, HOW? I GOT A FEW ON YOUR SCREEN, I GOT A FEW MORE TO TELL YOU TODAY. FIRST OFF, AS THE COUNCIL KNOWS, LAST YEAR, GIVEN OUR REQUIREMENT FOR A BALANCED BUDGET,

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SO WHAT THAT REQUIRES US TO DO IS THAT IN THE OTHER NON-POLICE DEPARTMENTS, OTHER GENERAL FUND DEPARTMENTS, WE HAVE TO, AS THE YEAR GOES ON, FIND SAVINGS TO TRY TO BRING THAT NUMBER WITHIN BUDGET. SOMETIMES WE SUCCEED AND SOMETIMES WE DON'T.

BECAUSE, AGAIN, WE'RE TRYING TO MAINTAIN SERVICES FOR OUR COMMUNITY. LAST YEAR, THE COUNCIL, I KNOW THERE WERE SOME GOALS, SOME VISION FOR WHAT RAISE IS TO GIVE PUBLIC SAFETY, AND WE WERE UNABLE TO ACHIEVE THAT LAST YEAR. WE HAD GOALS FOR WHAT TO GIVE FOR OUR COMPENSATION STUDY FOR THE NON-PUBLIC SAFETY EMPLOYEES. WE WERE UNABLE TO ACHIEVE ALL THAT LAST YEAR.

WE HAVE GOALS FOR OUR IT DEPARTMENT. AS I SAID BEFORE, WE ARE FALLING BEHIND IN IT. SOFTWARE IS INCREASING. I THINK RICH HAS TOLD MANY OF YOU, WE CANNOT DO CERTAIN THINGS THAT WE NEED TO DO TODAY BECAUSE WE WERE UNABLE TO... FORWARD WHAT NEEDED TO BE DONE IN THE IT BUDGET.

WE'VE HAD TO CLOSE FACILITIES, WHETHER IT'S PARKS, WHETHER IT'S PARK RESTROOMS, OR WHETHER IT'S POOLS, BECAUSE WE'VE BEEN UNABLE TO MAINTAIN THOSE SERVICES WITH OUR REVENUE STREAM. OUR CIPS MOSTLY DEPEND ON THE FACT THAT WE HAVE INTEREST EACH YEAR. WE'RE UNABLE TO EVEN PLAN ON THERE BEING REVENUE STREAMS TO FUND CIPS. WE HAVE TO RELY ON THE HOPE AND PRAYER THAT INTEREST RATES WILL ALLOW US TO HAVE CIPS. WE HAVE TO NOW, AS WE WILL SEE LATER TODAY, WE HAVE TO NOW RELY UPON COS TO FUND STREETS. BECAUSE WE CAN NO LONGER MAINTAIN STREETS AT THE LEVEL WE NEED TO USING OUR OPERATING FUNDS.

WE HAVE TO NOW DEPEND ON THE INS TO MAINTAIN STREETS. AND LET'S JUST MAINTAIN STREETS. WE HAVE TO ALSO SUBSIDIZE OUR GENERAL FUND WITH OUR ENTERPRISE FUNDS, WATER, SEWER, DRAINAGE.

WITHOUT THOSE FUNDS, GENERAL FUND WILL NOT FLOAT. ALL THESE THINGS ARE EXAMPLES OF HOW OUR REVENUE AND GENERAL FUND IS NOT KEEPING UP. OUR COSTS ARE OUTPACING OUR REVENUE. SO WITH THIS, ONE OF THE THINGS THAT WE CAN ALWAYS LOOK AT IS, I KNOW THERE'S THOSE EUPHEMISMS ABOUT TIGHTENING OUR BELT, CUTTING COSTS, DOING MORE WITH LESS. I APPRECIATE EUPHEMISMS, BUT I'M TIRED OF EUPHEMISMS. I NEED TANGIBLE DIRECTION FROM PEOPLE. I NEED TO KNOW WHAT IT IS THAT WE CAN LIVE WITHOUT AS A COMMUNITY. WHAT CAN WE DO WITHOUT? WHAT ARE WE WILLING TO LET GO? WHAT ARE WE WILLING TO CUT? BECAUSE UNTIL I CAN RECEIVE GUIDANCE FROM CITIZENS, FROM COUNCIL, FROM ANYONE, FROM ANYONE WHO KNOWS THESE THINGS, UNTIL I CAN RECEIVE GUIDANCE ON WHAT TO CUT, THEN I'M LEFT TO THE INEVITABLE CONCLUSION THAT WE DON'T HAVE A COST OR EXPENSE ISSUE, I HAVE A REVENUE ISSUE. AND THAT'S WHAT WE NEED TO TRY TO ADDRESS. SO, WITH THIS...

ONE OF OUR RECOMMENDATIONS, I KNOW, GOING BACK TO THE VADER, WE'LL BE TALKING ABOUT COST RECOVERY ITEMS, OPPORTUNITIES LATER TODAY, BUT LOOKING AT PROPERTY TAX.

ONE OF OUR OPTIONS AVAILABLE TO US TODAY THAT WE CAN LOOK AT TO ADDRESS PROPERTY TAX IS A VOTER-APPROVED TAX RATE ELECTION. OR A VADER. AGAIN, AS I SAID BEFORE, WE'RE CAPPED AT 3.5%. THE CITIZENS WOULD HAVE TO GIVE US MORE THAN THAT IN ORDER TO GO BEYOND THAT.

AND SO... AGAIN, AS WE'VE TALKED, MANY OF US HAVE TALKED ONE-ON-ONE DURING THE LAST SIX MONTHS OR SO. I KNOW MANY OF YOU ARE FAMILIAR WITH WHAT VADRS ARE. WE HAVE TALKED ABOUT WAYS OF WHAT WOULD MAKE THE MOST SENSE TO TAKE TO THE TAXPAYERS WHEN IT COMES TO A VADR. SO WITH THIS, MY RECOMMENDATION TO YOU TODAY, IF WE WERE TO PURSUE A VADR, IS TO MAKE IT ABOUT PUBLIC SAFETY.

I'LL EXPLAIN WHY GOING ON HERE. OF COURSE, WE TALKED ABOUT SOME OF THE HOLES WE HAVE IN THE BUDGET. WE TALKED ABOUT SOME OF THE COMPENSATION LIMITATIONS WE HAVE AND SO FORTH. WE DISCUSSED THAT. I KNOW PEOPLE MAY ASK TODAY, WHAT DID A 3.5% GIVE US LAST YEAR? SO, GRAYSON, HOW DO YOU ALREADY KNOW TODAY THAT YOU NEED A VADER THIS SUMMER? WHY DO I ALREADY KNOW THAT? WELL, LAST YEAR I HAD STAFF RUN ME THE NUMBERS. AND SO. LAST YEAR, 3.5% GAVE US $2 MILLION, THEREABOUTS. THE POLICE OVERTIME ALONE IS OVER $2 MILLION. COMPENSATION, IT, ALL THESE THINGS, YOU START ADDING THEM ALL UP, AND WE GREATLY EXCEED $2 MILLION OUT OF THE GATE.

THAT'S WHY I KNOW A VADER WILL BE NEEDED THIS SUMMER, IF WE WISH TO FUND EVERYTHING. AGAIN, I DON'T KNOW IF YOU'VE HEARD OF THE VADER, I'M ALWAYS SAYING THAT IF OUR GOAL IS TO FUND ALL THE GOALS. I'M NOT SAYING WE HAVE TO DO ALL THOSE GOALS, AND I'M NOT SAYING TO WHAT LEVEL OF VADER WE NEED TO PURSUE. ALL I KNOW IS THAT.

GIVEN THE PREVIOUS DISCUSSIONS,

[00:25:01]

THOSE ARE ALL OF OUR PUBLIC SAFETY DEPARTMENTS. THAT IS A SIGNIFICANT PART OF OUR GENERAL FUND, A SIGNIFICANT PART OF IT. MOST OF THE EMPLOYEES ARE IN THOSE AREAS. MOST OF OUR FUNDS GO TO THOSE AREAS. A LOT OF OUR IT NEEDS ARE IN THOSE AREAS. THOSE ARE VERY, VERY COSTLY, BUT VERY NEEDED DEPARTMENTS THAT WE HAVE THERE.

WITH THIS, MY RATIONALE, I THINK THIS ALIGNS WITH THE COUNCIL'S STRATEGIC PILLARS, FINANCIAL RESPONSIBILITY AND PUBLIC SAFETY. I BELIEVE THIS ADDRESSES SOME OF THE CORE SERVICES THAT MANY OF OUR RESIDENTS PRIORITIZE, THAT WE HEAR A LOT ABOUT. AND AS I SAID BEFORE, THIS RELIEVES BUDGET PRESSURE ACROSS THE GENERAL FUND FOR OTHER DEPARTMENTS. A FEW ADVANTAGES AND SOME CHALLENGES TO A VADER. AGAIN, I'M NOT TELLING YOU YOU NEED TO DO A VADER TODAY. I'M NOT DOING THAT. I'M JUST HERE TO RELAY WHAT VADERS ARE AND THE SITUATION THAT WE'RE UP AGAINST, BASED OFF WHAT I'VE SEEN AND WHAT I KNOW. SO, A FEW ADVANTAGES TO DOING A VADER.

AGAIN, AS I SAID, IT RELIEVES ONGOING PRESSURE ACROSS THE GENERAL FUND. IT ALLOWS US TO PROPERLY BUDGET WHERE THINGS SHOULD BE AT, SO OTHER DEPARTMENTS DON'T HAVE TO COME IN UNDER TO MAKE CERTAIN THINGS HAPPEN.

IT ALIGNS WITH YOUR STRATEGIC PILLARS. I BELIEVE, BASED OFF OF HISTORY WITH VOTER TURNOUT WHEN IT COMES TO BOND ELECTIONS, AND SOME OF THE CAUTION, THE COUNT THAT CITIZENS HAVE HAD TOWARDS TAX INCREASES, I THINK THIS WOULD BEST ALIGN WITH VOTER INTEREST FOR A POTENTIAL TAX INCREASE, IF THEY SO WISHED. I THINK THIS ALSO LEVERAGES OUR ASSOCIATIONS, POLICE AND FIRE.

I'LL BE OPEN AND BLUNT ABOUT THAT. I, AS STAFF, AND YOU, TO A CERTAIN DEGREE, ARE LIMITED AS TO WHAT YOU CAN DO FOR AN ELECTION. I CANNOT GO OUT THERE AND SAY, VOTE YES OR VOTE NO. I HAVE TO BE NEUTRAL. SO I CANNOT CHAMPION OR CAMPAIGN ANY TYPE OF ELECTION, WHETHER IT'S A BOND OR A TAX INCREASE. I CANNOT DO THAT. ASSOCIATIONS CAN. AND THEY HAVE BECOME MORE ACTIVE IN RECENT YEARS, WHICH IS THEIR RIGHT. SO THERE'S AN OPPORTUNITY HERE TO PARTNER WITH EXISTING ASSOCIATIONS, IF THEY SO CHOOSE TO PARTICIPATE TO DO THAT. AND AGAIN, THIS ADDRESSES A SUBSTANTIAL PORTION OF OUR GENERAL FUND. SOME CHALLENGES. THE MECHANICS OF THIS. WE WOULD NEED TO PREPARE TWO BUDGETS. YOU HAVE TO HAVE... THE POTENTIAL VADER BUDGET THAT THE CITIZENS GIVE YOU IN NOVEMBER, BUT YOU HAVE TO THEN HAVE THE FALLBACK BUDGET.

IN CASE THAT DOES NOT WORK OUT, THE 3.5% BUDGET THERE. SO WE HAVE TO PREPARE THIS SUMMER TWO BUDGETS TO PRESENT TO YOU ALL THIS SUMMER.

AGAIN, AS I SAID BEFORE, OUR ABILITY TO ADVOCATE IS LIMITED. I CANNOT ADVOCATE FOR OR AGAINST A TAX INCREASE OR AN ELECTION OF ANY KIND.

YOU, TO A CERTAIN DEGREE, POSSIBLY CAN. WE CAN DISCUSS THAT. BUT EVEN YOU HAVE SOME LIMITATIONS. BUT WE AS A CITY CANNOT DO THAT, SO THERE'S A CHALLENGE WITH THAT. WE HAVE TO BASICALLY PRESENT THE FACTS AND THEN HOPE FOR A CHAMPION TO RISE UP AMONG THE COMMUNITY TO THEN CHAMPION THIS.

ELECTIONS OCCUR IN NOVEMBER.

WE HAVE TO THEN GET THROUGH TWO MONTHS OF NOT KNOWING IF IT'S GOING TO HAPPEN OR NOT. OUR FISCAL YEAR STARTS OCTOBER 1ST. SO WE HAVE TO BASICALLY ASSUME OCTOBER 1ST UNDER 3.5%, NOVEMBER 3.5%, AND THEN IT GETS APPROVED, THEN WE CAN THEN GO UP FROM THERE. SO THERE'S SOME UNKNOWN THERE FOR TWO OF THE MONTHS. VOTERS HAVE HISTORICALLY BEEN CAUTIOUS ON TAX INCREASES. SO AS WE SEE ELECTIONS IN PRIOR YEARS FOR BONDS, THOSE TEND TO BE VOTED DOWN ACROSS THE REGION, INCLUDING AMARILLO. SO THAT'S ONE THING YOU MUST BEAR IN MIND IF YOU WERE TO PURSUE A VADER. YOU HAVE TO UNDERSTAND YOUR CITIZENS AND WHETHER YOU THINK THEY WOULD DO THIS AND FOR WHAT PURPOSE.

WHAT WOULD THEY BE WILLING TO GO TO THE BALLOT AND SAY YES TO? AND WITH ALL THIS, VADERS REQUIRE A SIGNIFICANT AMOUNT OF PLANNING AND CAREFUL EXECUTION.

AS I SAID BEFORE, LOGISTICALLY, WE HAVE TO PREPARE TWO BUDGETS. IF WE DO PUBLIC SAFETY, WE HAVE TO THEN COORDINATE A LOT OF DEPARTMENTS. WE HAVE TO GET A LOT OF COUNCIL INPUT. I NEED TO THEN KNOW FROM YOU, I'M NOT SAYING TODAY, BUT IF WE WERE TO PURSUE THIS, I WOULD NEED TO KNOW FROM YOU ALL. WHAT.

YOUR PARAMETERS, LIKE, SAY, STAFF, DON'T GO BEYOND FIVE CENTS, OR DON'T GO BEYOND, OR WHATEVER IT IS.

WE'LL NEED TO TALK ABOUT THOSE THINGS. THERE'S A LOT OF COORDINATION TO BE DONE. AND AGAIN, I REMIND YOU ALL, I HAVE A NEW CFO COMING ON BOARD. AND SO THERE'S SOME CHALLENGES WE HAVE WITH THAT.

SO WITH THIS, THIS IS MY FINAL SLIDE ON THE VADER. I'LL BE SEEKING SOME DIRECTION FROM THE COUNCIL TODAY.

AGAIN, I'M NOT ASKING YOU TODAY TO TELL ME SINCE... OR THOSE

[00:30:04]

WE WILL THEN GO THROUGH THE BUDGET CYCLE, WE'LL PREPARE ONE BUDGET, AND WE'LL GO FROM THERE WITHIN OUR CURRENT CONSTRAINTS UNDER REVENUE AND LAW. IF THERE IS AN INTEREST IN PURSUING A VADER, I WOULD THEN ASK, DO YOU AGREE WITH A PUBLIC SAFETY DIRECTION, OR WOULD YOU LIKE TO SEE A DIFFERENT DIRECTION? IF YOU PURSUE THE PUBLIC SAFETY DIRECTION, I WOULD THEN TURN THIS TO MY DEPUTY CITY MANAGER, ANDREW FREEMAN, TO WORK WITH HIS STAFF. HE OVERSEES THE PUBLIC SAFETY DEPARTMENTS TO THEN COORDINATE. WHAT ARE WE GOING TO REQUEST OF THE CITIZENS THIS UPCOMING NOVEMBER. AND WITH THIS, IF YOU WERE TO APPROVE THIS, IF YOU WERE TO DO A VADER, IF YOU WERE TO SAY YES TO A VADER, WE WOULD THEN GET TO WORK DESIGNING TWO PARALLEL BUDGETS, AS I SAID BEFORE. WE WILL THEN HAVE TO WORK OUR CALENDARS AROUND THAT TO FIGURE OUT HOW THAT WORKS. WE'LL THEN HAVE TO PROBABLY HAVE SOME TOUCH POINTS WITH COUNCIL BETWEEN NOW AND JULY, KIND OF GET SOME DIRECTION FROM COUNCIL ABOUT PARTICULAR VADER POINTS. AND THEN WE'LL HAVE TO HAVE CLEAR CONTINGENCY PLANS AS STAFF, AS COUNCIL, AS BUDGET ON IF IT FAILS OR IF IT SUCCEEDS. AND SO WITH THAT, I'M GOING TO PAUSE FOR A SECOND HERE. I'D LIKE TO GET YOUR FEEDBACK ON WHAT YOU THINK ABOUT A VADER, ANSWER YOUR QUESTIONS TO THE BEST OF MY ABILITY AS I CAN. AND HOPEFULLY GET SOME DIRECTION TODAY ON WHETHER TO PURSUE A VADER OR NOT. SO I'LL BE QUIET HERE AND TAKE SOME NOTES.

WELL, GRAYSON, I APPRECIATE THE EFFORT THAT YOU DID ON GIVING US THIS INFORMATION PRIOR TO THIS MEETING SO THAT WE COULD REVIEW IT. I THINK THIS IS A GREAT STEP FORWARD FOR US AS COUNCIL AND ALSO AS A CITY, BECAUSE... IT OUTLINES THE PROBLEMS, THE ISSUES WE'RE FACING, BUT IT ALSO GIVES US A CHANCE, I THINK, TO TAKE IT ONE STEP FURTHER.

WHEN I READ THROUGH THIS THING, WHAT YOU ASK STAFF TO DO, YOU'RE GETTING CLOSE TO DOING ZERO-BASED BUDGETING.

BECAUSE THEY HAD TO GO BACK AND THEY HAD TO LOOK AT THEIR BUDGETS AND THEY HAD TO SEE WHERE THEY COULD EITHER INCREASE FEES, MAKE CUTS, AND DO THAT TYPE OF THING. SO I THINK THAT EXERCISE WAS VERY IMPORTANT. ONE THING I'VE FOUND OUT AS I'VE TRAVELED AROUND THIS CITY AND TALKED TO DIFFERENT GROUPS, IT'S NOT THAT. PEOPLE IN AMARILLO ARE OPPOSED TO A TAX INCREASE. NOBODY LIKES A TAX INCREASE AT ALL, NONE OF US. THEY WANT A SAY IN WHAT THAT IS. SO WHEN WE DO FEES ON A UTILITY BILL, OR WE JUST MAKE AN INCREASE IN TAXES, EVEN THOUGH THEY KNOW BY LAW WE CAN DO THE 3.5%, THEY FEEL THAT THEY'VE BEEN SIDESTEPPED AS THE PEOPLE WHO PAY THE BILLS. AND I THINK AS WE TALK ABOUT THIS PERSONALLY, I LIKE THE IDEA. WE'RE GIVING THEM ENOUGH TIME ON THE FRONT END. HERE WE ARE IN MARCH, IN SOMETHING THAT WE'RE GOING TO WALK THROUGH. I THINK IT GIVES US ENOUGH TIME TO PREPARE THE PUBLIC FOR WHAT IT IS WE'RE LOOKING AT.

HOPEFULLY, AS WE TALK ABOUT THE PUBLIC SAFETY END OF THIS, THAT WE'RE NOT JUST TALKING ABOUT SALARY INCREASES AND BENEFITS. IT'S ALL-ENCOMPASSING FOR THE THINGS THAT WE TRULY NEED AS A CITY, WHETHER IT'S THE ANIMAL WELFARE AND MANAGEMENT, AS WELL AS OUR COMMUNICATIONS DEPARTMENT, THAT THEY ARE GETTING THINGS THAT THEY ACTUALLY NEED, AS OPPOSED TO JUST SALARY INCREASES. SO I THINK THAT'S AN IMPORTANT THING. I THINK WE'RE HEADED IN THE RIGHT STEP. I THINK THE PUBLIC HAS TO HAVE THE SAY IN WHETHER OR NOT THEY'RE WILLING TO PAY THOSE EXTRA TAXES FOR THE SERVICES THAT THEY WANT FROM OUR CITY. AND LEGISLATION OBVIOUSLY AGREES WITH YOU.

THAT'S WHY THE VADER OPTION HAS BEEN MADE AVAILABLE. IT REQUIRES VOTER APPROVAL, SO THEY WOULD AGREE WITH YOU, YES. HEY, GRAYSON, AND MAYBE COMING UP WE'LL DISCUSS THIS, BUT DO WE HAVE, OR IS IT EVEN DOABLE TO...

FIND THE COST PER HOUSEHOLD.

WHEN WE LOOK AT A BUDGET THAT IT REQUIRES TO RUN OUR CITY FROM TOP TO BOTTOM, STREETS, EVERYTHING, DO WE HAVE AN AVERAGE COST PER HOUSEHOLD? WE CAN DEVELOP THAT.

I'M SURE WE CAN. OKAY, SO WE COULD SEE, YOU KNOW, WHAT? BASED ON PREVIOUS NUMBERS. I KNOW WE HAVE HOUSING STARTS AND WE HAVE THAT KIND OF THING. SO WE WILL SHOW A LITTLE BIT OF GROWTH, BUT WITH GROWTH, THERE'S ADDITIONAL. SERVICES REQUIRED, I MEAN, FROM EVERYTHING. SO EACH ADDITIONAL HOME, THAT'S GREAT THAT WE PROVIDE ADDITIONAL REVENUE, BUT I WOULD LOVE TO

[00:35:02]

FOR ME, BEFORE WE CAN GET TO THE VADER, THERE'S A COUPLE OF QUESTIONS THAT I WOULD WANT TO HAVE ANSWERED. ONE IS, I THINK WE NEED TO LOOK AT ALL THE OPTIONS THAT ARE ON THE TABLE, INCLUDING THIS. I THINK IT WOULD BE, I DON'T THINK IT WOULD BE GOOD LEADERSHIP IF WE'RE NOT LOOKING AT ALL THE OPTIONS THAT ARE AVAILABLE TO US. SO, FIRST OF ALL, I THINK THIS AND... WHATEVER OTHER OPTIONS ARE AVAILABLE. I THINK WE SHOULD, I SHOULD, AS A COUNCIL, I WOULD HOPE WE WOULD CONSIDER THESE AND NOT JUST SAY ABSOLUTELY NOT, WE CAN'T DO IT, LOOKING AT ALL THE OPTIONS THAT ARE AVAILABLE, EITHER FOR NOW OR FOR IN THE FUTURE. BECAUSE I AGREE WITH YOU THAT THESE, YOU KNOW, WE COULD SOLVE THIS PROBLEM IF THE STATE WOULD JUST LET US KEEP ALL OF OUR SALES TAX INSTEAD OF SENDING 75% OF OUR SALES TAX TO AUSTIN.

THAT WOULD SOLVE OUR PROBLEM IMMEDIATELY, BUT THEY WON'T DO THAT.

THEY'RE TAKING OUR MONEY DOWN TO AUSTIN AND USING IT. I DON'T KNOW WHETHER WE GET OUR MONEY'S WORTH OUT OF THAT, BUT THE STATE TAKES 75% OF OUR SALES TAX. BUT A COUPLE OF THINGS, AND YOU'RE GOING TO GO OVER ONE OF THESE TODAY, BUT WHAT I'VE GOT TO HAVE A GOOD UNDERSTANDING OF, A COUPLE OF THINGS THAT YOU COULD ANSWER. AND THEN ONE THING THAT WE'VE GOT TO ANSWER AS A COUNCIL. ONE IS, WHAT IS OUR COST RECOVERY? I MEAN, HOW MUCH COULD WE MITIGATE A VADER BASED ON COST RECOVERY? AND YOU'RE GOING TO GO OVER THIS TODAY. THE OTHER THING THAT I THINK WE'VE GOT TO BE ABLE TO ANSWER, AND IT'S NOW AND IT'S IN THE FUTURE, WHAT CAN WE LOOK AT AT SAVINGS? I MEAN, OKAY, WE'RE LOOKING AT, YOU KNOW, RAISING FEES TO PAY FOR CERTAIN THINGS, BUT WHAT OTHER AREAS OF SAVINGS DO WE HAVE? THAT, AGAIN, MITIGATES THE AMOUNT OF EVADER THAT WE WOULD NEED? SO TO ME, IT WOULD BE, YOU KNOW, WHAT ARE THE SAVINGS? BECAUSE THE AMOUNT OF THE DEBATER NEEDS TO BE COMING IN AFTER COST RECOVERY AND SAVINGS. I THINK WE'RE GOING TO HEAR ABOUT COST RECOVERY TODAY, BUT WHAT ARE WE LOOKING AT TO BE ABLE TO MITIGATE THAT ON THE SAVINGS SIDE? WHAT ARE WE BEING ABLE TO DO? I HOPE IN THE BUDGET THIS YEAR WE'RE GOING TO LOOK AT OVERTIME AND BEING ABLE TO TAKE A LOOK AT THAT BECAUSE I THINK OVERTIME, AND AGAIN, I'VE GOT A BETTER UNDERSTANDING OF HOW WE HAVE TO PAY OVERTIME IN CERTAIN BUDGETS WHEN WE'RE HAVING TO COVER 24-7, 365.

BUT OVERTIME IS SOMEWHAT OF A CONTROLLABLE EXPENSE.

SO, YOU KNOW, THAT WOULD BE PART OF IT. I THINK WHAT WE HAVE TO ANSWER AS A COUNCIL IS.

WHAT ARE WE WILLING TO LET GO? WHAT ARE, YOU KNOW, TO ME, CORE SERVICES ARE THINGS THAT WE CAN'T LET GO. CITIES CAN'T RUN WITHOUT STREETS OR SEWER LINES OR PUBLIC SAFETY.

BUT I THINK WE'RE GOING TO HAVE TO BEGIN TO ANSWER THE QUESTIONS, WHAT ARE THINGS THAT, YOU KNOW, THAT WE CAN'T LET GO OF? OR DO WE WANT TO LET GO OF? TO BE ABLE TO CONTINUE TO DO THIS? OR, BECAUSE I THINK IT'S GOING TO BE A CONTINUED QUESTION.

THAT WE'RE GOING TO HAVE TO FACE THE CHALLENGES OF, YOU KNOW, IS THERE ANYTHING THAT WE WANT TO LET GO OF, OR WE CAN LET GO OF, OR DO WE WANT TO CONTINUE DOING ALL THE THINGS? AND SO I THINK THERE'S TWO BUCKETS. I THINK. THERE'S THOSE THINGS THAT AS A CITY WE HAVE TO BE ABLE TO PROVIDE, NOBODY ELSE WILL PROVIDE THEM, AND YOU CAN'T HAVE A CITY WITHOUT IT. AND THEN WHAT ARE OTHER THINGS, AND WHERE DO THOSE THINGS LIE? CAN I ASK YOU, I MEAN, I LOVE THE OPEN DISCUSSION.

CAN I ASK, LIKE, WHAT WOULD THOSE THINGS BE? BECAUSE I LOOK AT THE CITY, I'M THINKING, OKAY, SO WHAT CAN WE DO WITH THAT? WHAT CATEGORY OF THINGS WOULD YOU BE, WOULD BE IN THERE? GREAT QUESTION. DON, I'LL ASK YOU. I MEAN, IF YOU WERE LOOKING AT THINGS THAT WE HAVE TO HAVE AS A CITY, THAT NO ONE ELSE PROVIDES, WHAT WOULD THOSE BE? I MEAN, THAT'S A GREAT QUESTION. I MEAN, I LOOK AT OUR BUDGET. I DON'T SEE ANYTHING IN THERE, THAT'S JUST FAT. THAT WE'RE LIKE, WELL, THIS IS GREAT THAT WE HAVE. I

[00:40:01]

I'M NOT COMING AT YOU. I MEAN, I'M TRULY CURIOUS.

WITH OUR CORE FUNCTIONS, THE BARE NECESSITIES, FOR SURE, BUT WHAT IS IN THERE? I MEAN, I DON'T KNOW IF THIS IS JUST AN OPEN DISCUSSION, DOES IT? I THINK IT'S A GREAT QUESTION FOR ALL OF US TO ANSWER THAT, IS TO BE ABLE TO SAY, WHAT ARE THE REASONS. IS THERE ANYTHING? BECAUSE I THINK IT'S, AND TO ME, THE QUESTIONS YOU'VE GOT TO ASK ARE, WHAT ARE THINGS THAT WE HAVE TO ABSOLUTELY HAVE? YEP, AS A MUNICIPALITY, THAT WE CAN'T FUNCTION WITHOUT THEM, CAN'T FUNCTION STREETS IMPROVING STREETS, WE CAN'T FUNCTION WITHOUT THAT, PUBLIC SAFETY, WE CAN'T FUNCTION, YOU KNOW, WITHOUT THAT. AND AND YEAH, YOU KNOW, THOSE TYPES OF THINGS, AND YOU KNOW WHAT ARE SOME THINGS THAT THAT OTHERS ARE PROVIDING THAT? BECAUSE I THINK THIS QUESTION IS, WHAT DO WE ABSOLUTELY HAVE? AND WHAT IS IT THAT NOBODY ELSE IS GOING TO PROVIDE UNLESS WE DO. THOSE ARE THE TWO QUESTIONS. AND MAYBE WE LOOK AT THE BUDGET AND WE SAY, NO, EVERYTHING IN THERE IS JUST LIKE THAT. AND IT'S QUESTIONS THAT MUNICIPALITIES ARE HAVING TO ASK THEMSELVES, NOT ONLY HERE ACROSS THE STATE, BUT ACROSS THE COUNTRY. I THINK WHEN WE LOOK AT WHAT ARE THE CRITICALITIES OF THE CITY, IT'S IMPORTANT.

WHAT DID WE NEED 75 YEARS AGO? WHAT DID WE NEED 80 YEARS AGO? I MEAN, IT'S CLEAN WATER, IT'S FIRE, IT'S POLICE FORCE. I MEAN, WHAT ARE THE BASICS OF MASLOW'S HIERARCHY THAT WE NEED AS A SOCIETY AND AS THE HUMAN CONDITION TO LIVE? AND THEN WHAT IS ABOVE THAT? THAT IS, I MEAN, IT GOES BACK TO JUST THE BASIC, FUNDAMENTAL TASKS THAT WE NEED.

SO THERE IS FAT. THERE ARE THINGS THAT ARE NOT CRITICAL TO THE HUMAN CONDITION FOR THE CITY TO OPERATE. AND THAT'S HOW YOU HAVE TO TAKE A HARD LOOK AT IT.

OKAY. WHAT ARE THOSE? WHAT ARE THOSE? I MEAN, WE KEEP SAYING IT, BUT WHAT'S THERE THAT WE'RE SAYING IS FAT? I MEAN, ARE PARKS FAT? I MEAN, IS PARKS AND RECS LIKE WE DON'T? AT THE END OF THE DAY, WHAT ARE THE PRIORITIES FOR THE TIPS HOUSEHOLD TO OPERATE? ELECTRICITY, WATER, SEWER, FIRE, POLICE. YEAH.

NO, I GET IT. I MEAN, DO WE NEED TENNIS? DO WE NEED GOLF? I MEAN, I'M NOT SAYING, GET RID OF TENNIS. I'M NOT SAYING, GET RID OF GOLF COURSES. I'M NOT SAYING ANY OF THAT. BUT I'M SAYING IT IS VERY SIMPLY DEFINED. WHAT ARE THE CRITICALITIES THAT HAVE TO BE PROVIDED FOR THE CITIZENS TO LIVE. AND THEN YOU BREAK IT DOWN BY TIERS TO MOVE FORWARD FROM THAT POINT. AND THEN WE DECIDE. I GUESS THAT'S THE QUESTION. RIGHT. GRAYSON PROPOSED IS, WHAT IS IN THERE THAT WE'RE WILLING TO GIVE UP? IF THERE'S NOT ENOUGH MONEY TO PROVIDE, I MEAN, BACK TO WHAT LES SAID, WHAT IS THERE THAT WE CAN GIVE UP? I MEAN, YOU KNOW, WOULD IT BE A TERRIBLE CITY? WE DON'T HAVE ANY QUALITY OF LIFE. ABSOLUTELY. IT WOULD BE HORRIBLE. YEAH. SO, BUT WHAT YOU'RE SAYING IS TECHNICALLY, I GUESS WHAT LES WAS SAYING, THAT THAT'S FAT. I MEAN, WE DON'T HAVE TO HAVE THOSE TO LIVE. I MEAN, NO CITIZEN HAS TO HAVE THOSE THINGS TO LIVE.

WHEN YOU HAVE TO MAKE THE HARD DECISIONS.

RIGHT. AND WE. WE GET TO CELEBRATE THE WINS, BUT WE HAVE TO MAKE THE HARD DECISIONS UP HERE.

LIKE YOU'RE SAYING, IN A HOUSEHOLD, IF SOMEBODY LOSES THEIR JOB, WHAT THINGS GO BY THE WAYSIDE? YEAH, YOU'RE NOT GOING TO DINNER. YOU'RE NOT DOING A LOT OF DIFFERENT THINGS. YOU HAVE TO TIGHTEN YOUR BUDGET. AND SO THAT IS, I THINK THAT'S WHAT YOU'RE SAYING. WHAT ARE THE CRITICAL COMPONENTS? I JUST WANT TO SAY, GRAYSON, THANK YOU FOR BRINGING THIS DISCUSSION TO COUNCIL EARLY, IDENTIFYING THIS. YOU KNOW, YOU'VE DEFINED OUR RESPONSIBILITY TO DEFINE THE PRIORITIES AND WHERE WE'RE GOING TO GO. I THINK IT'S CRITICAL, WHICHEVER DIRECTION THIS VADER GOES, THAT IT IS COMMUNICATED VERY CLEARLY TO THE CITIZENS.

THE CITIZENS HAVE THE RIGHT TO INTERACT. AND IT'S CRITICAL THAT YOUR STAFF AND ALL OF THE DEPARTMENTS ARE ALIGNED WITH THIS INITIATIVE TO FIND THESE DOLLARS. I MEAN, WHAT ARE WE GOING TO DO AS A CITY? HOW LONG HAS IT BEEN SINCE WE'VE ACTUALLY APPROVED MONIES? AS A COMMUNITY, YOU KNOW FOR FOR INITIATIVES. NOW, I'M NOT SAYING, I KNOW PEOPLE OUT THERE ARE GOING TO SAY, OH, DAVID'S SAYING THAT, THAT WE'RE ONLY GOING TO DO WATER AND SEWER AND POLICE, AND YOU KNOW THOSE THINGS. I'M NOT SAYING THAT AT ALL, BUT I THINK THAT WE DIVE IN AND WE REALLY TAKE A LOOK AT IT AND I APPRECIATE THE FORWARD THINKING. IT'S EASY TO LOOK IN THE REARVIEW MIRROR AND SEE WHERE WE'VE BEEN, BUT THIS IS, THIS IS A MOVE FORWARD, THAT WE'RE ALL ALIGNED. AND AS WE COMMUNICATE THIS AND THE COST OF WHAT IT TAKES TO RUN A CITY AND HOW WE'RE BEING HAMPERED BY AUSTIN, IT'S A GREAT DISCUSSION, AND I THANK YOU FOR PUTTING THIS OUT.

ABSOLUTELY. I THINK WE ARE ALSO MAKING A MISTAKE HERE BECAUSE

[00:45:02]

SO WHEN WE'RE LOOKING AT WHAT WE NEED AS A CITY, I CALL IT NEEDS PLUS, RIGHT? NEEDS VERSUS WANTS. THERE ARE THINGS I WOULD LOVE TO HAVE IN THE CITY, AND I KNOW I COULDN'T GET ANYBODY TO AGREE TO VOTE FOR THEM. SO THOSE GO OFF THE TABLE. WE HAVE TO LOOK AT OUR BASIC STRUCTURE OF THINGS, TOO, ON HOW WE OPERATE. YOU KNOW, WE'RE TRYING TO COME UP WITH ANSWERS. INNOVATION NEVER CAME FROM GOVERNMENT, EXCEPT I CAN ONLY THINK OF TWO THINGS, MAYBE THE RAILROAD AND SPACE, WHAT WE'VE DONE THERE.

GOVERNMENT CAME UP, BUT THEY DIDN'T HAVE THE ANSWERS. THEY FUELED IT AND ASKED FOR INNOVATION. AND I DON'T THINK WE RELY ON THE PEOPLE THAT WE HAVE IN OUR COMMUNITY. WE HAVE EXPERTS IN ALL THESE THINGS, WHETHER IT'S ROAD CONSTRUCTION, WATER MAINTENANCE, WASTEWATER. ALL OF THOSE THINGS, WE HAVE PEOPLE HERE IN TOWN THAT WE CAN RELY ON. I GO BACK TO LOOKING AT THE COMMITTEES, WHY WE DO ALL THOSE APPOINTMENTS IN ONE PLACE.

THAT'S AN INTEGRAL PART TO WHAT WE DO AS A CITY AND HOW WE MAKE DECISIONS UP HERE IN THE DAIS. DO WE HAVE THE RIGHT PEOPLE ON THOSE COMMITTEES THAT ARE LOOKING AT THE THINGS THAT WE NEED IN OUR CITY? BECAUSE YOU GET THE RIGHT BUSINESS PEOPLE ON THERE. THAT HAVE THAT RIGHT ATTITUDE THAT THIS IS WHAT WE WANT TO DO AND THIS IS WHERE WE WANT TO MOVE OUR CITY, THAT MAKES IT EASIER FOR OUR JOB. SO I REALLY THINK THAT WE HAVE TO STEP BACK A LITTLE BIT. AND INSTEAD OF TRYING TO FIND ALL THE ANSWERS OURSELVES, RELY ON WHAT EXPERTS WE HAVE OUT THERE. AND WE HAVE SOME TIME, RIGHT? AS WE LOOK AT THE VADER, IT'S GOING TO DEAL WITH PUBLIC SAFETY. I THINK YOU LISTED ABOUT SIX.

SIX AREAS THAT ARE THERE. ARE ALL OF THOSE AREAS NECESSARY FOR THE CITY? IS THERE SOMETHING WE CAN DO WITHOUT? IS THERE SOMETHING WE NEED TO ADD TO THAT? I DON'T HAVE THE ANSWER FOR THAT, RIGHT? SO I REALLY THINK THAT GETTING OUR CITIZENS MORE INVOLVED IN THIS PROCESS THAN JUST THE FIVE OF US TRYING TO MAKE DECISIONS, WHAT WE THINK IS IMPORTANT. I THINK WE ALL AGREE, AND I THINK THE PEOPLE OUT HERE IN THE AUDIENCE AND ALSO THOSE WATCHING, WOULD AGREE ON WHAT THE BASICS ARE THAT WE NEED AS A CITY. I DON'T THINK ANYBODY DISAGREES WITH THAT. AS FAR AS WATER AND WASTEWATER, OUR INFRASTRUCTURE, PUBLIC SAFETY, I THINK WE ALL AGREE ON THOSE THINGS. IT'S THE OTHER THINGS, IT'S THE PLUS, THAT I THINK THAT WE HAVE TO START LOOKING AT. AND IF IT MEANS WE NEED TO CUT THINGS, AND DID PEOPLE TELL US IN SINCERITY? WE CAN LIVE WITHOUT THIS, THEN WE HAVE TO TAKE A SERIOUS LOOK AT IT.

ARE YOU GOING TO ASK HIM WHAT THE PLUSES ARE, COUNCILMEMBER TIPS? YOU'VE ASKED THIS SIDE OF THE DAIS.

YEAH, NO, IT'S THE RIGHT SIDE. WE'RE GOOD. I WOULD SAY, GOING BACK TO IT, I JUST THINK THE COST RECOVERY, I'M LOOKING FORWARD TO THAT. BUT THE OTHER THING THAT I THINK, IT'S LIKE, BEFORE WE GO ASK FOR MORE MONEY, WHAT ARE WE CURRENTLY DOING? SO THE COST RECOVERY, I LIKE, BUT WHAT ABOUT ON THE SAVINGS SIDE AND BEING ABLE TO LOOK AT THAT? THAT WOULD BE SOMETHING THAT I THINK WOULD BE BENEFICIAL FOR US TO KNOW.

WHAT HAVE WE REALLY LOOKED AT? BECAUSE IT'S, AND I THINK IT'S A QUESTION WE'RE GOING TO HAVE TO CONTINUE TO HAVE TO ANSWER. I MEAN, EVEN IF WE HAVE A VADER THIS ONE YEAR, YOU KNOW, IF WE DON'T HAVE IT IN THE FUTURE, WE'RE GOING TO HAVE TO FIGURE OUT WHERE ARE THE SAVINGS IN THE FUTURE. AND THAT IS MY QUESTION FOR COUNSEL, YES.

YES, AND SO, BUT I WOULD ALSO SAY CHALLENGING EVERYONE, WHERE CAN WE FIGURE OUT, BECAUSE... WHEN YOU'RE FORCED, YOU KNOW, WHEN YOU DON'T HAVE THE MONEY TO SPEND, WHETHER IT'S A HOUSEHOLD OR A BUSINESS, YOU HAVE TO FIGURE IT OUT, YOU KNOW, AND WHAT I'M SAYING IS, YOU KNOW, IF WHAT ARE THINGS? AND SOMETIMES YOU FIGURE OUT, WELL, WHEN I. WHEN I HAVE NO OTHER CHOICE BUT DOING IT, I FIGURE OUT HOW TO DO THINGS THAT MAY BE OTHERWISE THAT I, YOU KNOW, WOULD NOT HAVE, YOU KNOW.

FIGURED OUT THAT, WOW, I REALLY COULD DO THAT. SO I JUST THINK THAT'S THE OTHER THING IS, YOU KNOW, THE COST RECOVERY, I THINK IS GOOD TO SAY, LOOK, WE'VE LOOKED AT, YOU KNOW, THE VADER COULD BE LOWER, BECAUSE WE'VE LOOKED AT COST RECOVERY. AND BEING ABLE TO, YOU KNOW, TO DO THAT. BUT, AGAIN, WHAT IS ON THE SAVINGS SIDE THAT WE COULD SAY, YOU KNOW WHAT, HERE ARE SOME THINGS THAT WE'VE FIGURED OUT HOW TO DO MORE EFFICIENTLY. HERE ARE THINGS THAT WE'VE FIGURED OUT HOW TO BE ABLE TO HAVE A SAVINGS ON THAT.

TO BE ABLE TO BE EFFECTIVE. SO THAT WOULD BE, AND I AGREE, I THINK IT GOES BOTH WAYS. I THINK WE NEED

[00:50:03]

PROCESSING FEES YOU HAVE ON YOUR BUDGET. LATER TODAY FROM MUNICIPAL COURT. INTERNAL AUDIT HAS DONE THINGS IN ORDER TO FREE UP MONEY. GOLF IS AN EXCELLENT EXAMPLE. WE'LL TALK ABOUT THAT LATER TODAY. GOLF HAS DONE AN OUTSTANDING JOB THE LAST SEVERAL YEARS OF BECOMING MORE AND MORE EFFICIENT. AND WHAT THEY DO IS TRY TO COST RECOVER. AND THEN SB2 HAS NATURALLY FORCED US AS STAFF TO CONSTRAIN OURSELVES YEAR AFTER YEAR AFTER YEAR. SO IT IS WORKING LIKE THAT. ONE THING I'LL SAY IS THAT IF YOU'D LIKE TO, IF WE WERE TO PAUSE THIS, THEN WE COULD COME BACK TO THE END AFTER COST RECOVERY. BECAUSE COST RECOVERY, DEPENDING ON WHAT THINGS YOU NOD YOUR HEAD TOWARDS THAT YOU ACCEPT, THERE COULD BE SOME SIGNIFICANT REVENUE GENERATED THROUGH THOSE FEES. AND YOU CAN THEN DECIDE, AT THE END OF THIS CONVERSATION, YOU KNOW WHAT, LET'S TRY THAT THIS YEAR.

LET'S GET OUR FEES, LET'S GET OUR OTHER NON-PROPERTY TAX REVENUES LINED UP, SEE WHAT THAT DOES THIS SUMMER, AND THEN DECIDE FOR THE NEXT YEAR IF THAT'S STILL NOT ENOUGH. SO AGAIN, I'M NOT TELLING YOU YOU HAVE TO DO A VADR THIS YEAR. THE COUNCIL WANTED TO TALK ABOUT IT, SO WE WANTED TO TALK ABOUT IT. BUT COST RECOVERY, GIVEN THE NUMBERS I HAVE SEEN AND SOME NUMBERS I PUT IN THE REPORT, AGAIN, WE NEED TO VET THOSE THROUGH AND CLEAN AND SCRUB THEM. REALLY GOOD.

BUT THERE COULD BE SOME SIGNIFICANT MONEY THERE, EVEN A MILLION OR $2. EASILY, THAT COULD HAPPEN. SO YOU COULD SEE HOW THAT SHAKES OUT THE SUMMER AND THEN DECIDE THAT WASN'T ENOUGH, EITHER. WE FIXED OUR FEES. SALES TAX IS WHAT IT IS. WE'VE MAXED OUT OUR M&O FOR THREE AND A HALF. YOU CAN THEN DECIDE THEN, COME AUGUST, SEPTEMBER, THAT THAT STILL WASN'T ENOUGH. NEXT COUNCIL, NEXT CITY, NEW YEAR, WE SHOULD LOOK AT A VADER. SO YOU COULD REVISIT THIS AT THE END OF THIS DAY TODAY AND DECIDE YES OR NO.

AFTER YOU LOOK AT COST RECOVERY THINGS, IS WHAT I'M TRYING TO SAY. SO IF I COULD, I'LL JUMP IN HERE. SO CONVERSATION TODAY IS ESTABLISHED, THAT'S A GOOD WORD, ON ASSUMPTION THAT WE KNOW WHAT WE KNOW, RIGHT? WE KNOW OUR ACTUALS, WE KNOW OUR EXPENDITURES, WE KNOW OUR REVENUES. I DO WATCH THE REVENUES PRETTY CLOSELY. I LOVE THE FACT THAT WE'RE TRENDING HIGH ON SALES TAX. SALES TAX CONTINUES TO COME IN AHEAD OF BUDGET. I HAVEN'T BEEN PRESENTED WITH THE ACTUALS, SO MY FAVORITE FIVE WORDS, HOW DO WE KNOW THAT, RIGHT? SO, LIKE, YOU STARTED THE CONVERSATION WITH $2 MILLION SHORTFALL.

WITH POTENTIALS IN THE POLICE DEPARTMENT BASED ON OVERTIME. SO WE HAVE SCHEDULED BUDGETED POSITIONS THAT ARE UNFILLED. SO WE HAVE THOSE. EXPENDITURE BUDGETS THAT WE'RE NOT EXPENSING, THEY'RE OFFSETTING THE OVERTIME BY HOW MUCH. WE HAVE NOW A REALLY GOOD PRACTICE OF KEEPING DEPARTMENTS IN LINE WITH DEPARTMENTS. I DON'T LIKE THINKING THAT, YOU KNOW, DEPARTMENT X IS WORKING REALLY HARD TO COME IN UNDER BUDGET, JUST SO WHATEVER THEIR FUND BALANCE IS IS TAKEN AND GIVEN TO DEPARTMENT Y. THAT DIDN'T NECESSARILY. CARE TO MANAGE OVERTIME OR WHATNOT, RIGHT? NOW, POLICE IS THE ONE, WELL, ONE OF TWO, WHERE I THINK WE GET TO SAY THAT'S NOT NECESSARILY A SCIENCE THAT CAN BE PRACTICED.

I MEAN, IT COSTS WHAT IT COSTS TO RUN A POLICE DEPARTMENT, RIGHT? SO MANY DIFFERENT FACTORS. ONE GENTLEMAN MAKES A MISTAKE OVER THERE. ONE LADY MAKES A MISTAKE OVER THERE.

YOU'RE TALKING TENS OF MILLIONS OF DOLLARS OF POTENTIAL LIABILITY TO THE CITY. SO, ALL THAT BEING SAID, DO WE DO, AND IF NOT, SHOULD WE COUNSEL, LOOK AT A MID-YEAR BUDGET REVIEW AND GET AN ACTUALS? AND THEN WHY ARE WE, AS A COUNSEL, ASKED TO LOOK FORWARD 6 MONTHS, 12 MONTHS, 18 MONTHS WITHOUT BEING GIVEN ACTUALS WITHIN THE RECENT 30 DAYS? SO LIKE, IF WE ASK YOU TODAY, ARE YOU OVER BUDGET, I THINK THE ANSWER IS NO.

CORRECT. OKAY, SO NOBODY IS COMING IN HERE TODAY SAYING WE'RE WAY OVER BUDGET, RIGHT? YEAH,

[00:55:02]

BEING ABLE TO DO A BUDGET AMENDMENT, REAPPROPRIATE THAT MONEY BY THE APPROPRIATIONS COMMITTEE UP HERE SO THAT YOU GUYS CAN PUSH THAT OUT AND GET TO THOSE NEXT PROJECTS. SO EFFICIENCIES MATTER IN THAT WE COULD TAKE CARE OF QUITE A FEW THINGS IF WE DID A MID-YEAR BUDGET WITH A MID-YEAR BUDGET AMENDMENT. WHAT? WHAT I WOULD ASK FOR, THOUGH, IS HARD AND FAST ACTUALS, AND SO DOES OUR DEPARTMENTS, I BELIEVE THEY DO. I MEAN, I THINK OUR DEPARTMENT HEADS DO A REALLY GOOD JOB OF MANAGING THEIR OWN BUDGET.

WHERE I THINK WE'RE LOSING THAT IS WHEN WE'RE TRYING TO BRING IT ALL TOGETHER. AND MAYBE WE JUST LIMIT IT FOR THE FIRST STEP. AND, YOU KNOW, ALL YOU'RE TALKING ABOUT HERE, AS FAR AS A VADER IS GENERAL FUND, RIGHT? SO ALL WE'RE LOOKING AT IS JUST GENERAL FUND DEPARTMENTS.

CORRECT. PROPERTY TAX DEPARTMENTS, YES. YEAH, WE'D BE HAPPY TO BRING YOU GUYS AT THE NEXT MEETING, OR SO OUR ACTUALS AS OF DATE, SO WE COULD BRING THAT TO YOU ALL IF YOU LIKE. OKAY. I THINK THAT WOULD BE GREAT BECAUSE I THINK THOSE ACTUALS ARE REALLY WHERE I'M HOPING.

OUR NEW CFO IS GOING TO BE PRETTY STRONG IN TRACKING THOSE AND HAVING THOSE. AND THEN ARE WE THROUGH WITH ALL OF THE SOFTWARE ISSUES THAT WE CONSTANTLY HAVE HAD TO POINT TO? TO SAY, WELL, WE DON'T KNOW, BECAUSE WE'RE TRANSITIONING, WE'RE MIGRATING DATA, WE'RE HAVING TO HAND-ENTER THESE NUMBERS.

THERE'S SO MANY THINGS I CAN IMAGINE IF I'M TRYING TO RUN A DEPARTMENT, AND I'M RESPONSIBLE FOR THE CARE OF 300 MEN. MEN AND WOMEN THAT ARE PROVIDING PUBLIC SAFETY RUNNING INTO A BURNING BUILDING. AND, LIKE, I'M TRYING TO GET THEM EQUIPMENT, AND I'M TRYING TO DO ALL THESE THINGS, AND WHAT I'M ASKING FOR ARE ACTUALS FROM, YOU KNOW, UPSTREAM, AND I CAN'T GET THEM BECAUSE, WELL, WE'RE HAVING TO GO. GO BACK AND WE'RE HAVING TO, LIKE, COMPUTE, AND WE CAN ONLY GIVE YOU A ONE YEAR LOOK BACK. SO WHAT'S THE STATUS ON THAT ISSUE? IT IS INCOMPLETE. THAT'S ONE OF THE THINGS I SAID IN MY EARLIER SLIDE. ONE OF MY IMMEDIATE GOALS FOR THE NEW CFO IS TO DEFINE A CLOSEOUT PLAN FOR THE WORKDAY TRANSITION. SO THAT'S ONE OF THE THINGS I HAVE FOR LOLA ON HER PLATE TO WORK ON OVER THE NEXT TIME PERIOD IS TO WORK TOWARDS. WHAT DO WE NEED TO DO TO CLOSE OUT THAT PROJECT AND WHAT'S THE TIMELINE FOR THAT? SUPER THANKFUL THAT YOU HAVE HIRED VERY WELL. I THINK ONE OF THE THINGS THAT WE WILL SEE LOOKING BACK, AND IT MAY TAKE FIVE YEARS TO SEE SOME OF THE BENEFITS AND THE STRENGTH THAT YOU'VE DONE IN YOUR JOB.

OF PUTTING GOOD PEOPLE IN GOOD PLACES. AND SO I THINK YOU'VE HIRED VERY WELL. I'M EXCITED ABOUT HER. I HOPE SHE RUNS, YOU KNOW, 84 MILES AN HOUR BAREFOOT BECAUSE, LIKE, SHE'S GOT A LONG WAY TO GO QUICKLY. SO I THINK SHE CAN DO IT. DO IT. BUT ALL OF THIS STUFF THAT WE'RE TALKING ABOUT, WE CAN'T PUT COUNSEL ON THE FAST TRACK HERE. AND THEN THROW ALL THE CARGO ON THE TRAIN AT THE LAST DEPOT. AND SO WE'VE GOT TO GET COUNSEL, THESE FACTUAL INFORMATION, SO THAT WE CAN ADEQUATELY, ACCURATELY HELP TO STEER THE SHIP. SO ONE OTHER THING THAT WE WILL NEED.WE NOT ONLY HAVE THE ABILITY TO LOOK AT GROWTH IN OUR BUILDING SAFETY DEPARTMENT, WE HAVE NEW PROJECTS THAT ARE SCHEDULED, UNDER CONSTRUCTION THAT ARE COMING ON THE TAX ROLLS. WE HAVE EXISTING PROJECTS THAT JUST GOT ON THE TAX ROLLS. SO WE DON'T NECESSARILY, WHEN WE COME IN AND WE TALK ABOUT. WE'VE GOT TO RAISE OUR REVENUES, WE NEED TO GO OUT THERE AND WE NEED TO INCREASE PROPERTY TAXES. WE DON'T NECESSARILY DO THAT. THE SAME EFFORT OF WORK IN SAYING, OKAY, HERE'S THE TENS OF MILLIONS OF DOLLARS WORTH OF VALUED PROPERTY THAT'S COMING ON.

HERE'S THE ADDITIONAL INCREASES THAT WE'LL HAVE. WHAT WE'VE

[01:00:01]

LIKE, A YEAR LATER, HEY, THOSE REVENUES ARE GOING TO BE HIGHER. CAME IN A LITTLE HIGHER THAN WHAT WE THOUGHT.

SO WHAT WE HAVE SEEN IS AN UNDER-PROJECTION OF SALES TAX, CONSERVATIVE, AND THEN A LACK OF CONSIDERATION FOR GROWTH, NOT ONLY SALES TAX. GROWTH, BUT USER GROWTH, ADDITIONAL WATER USERS, ALL OF THE COMPONENTS THAT FUNCTION IN THE SYSTEM. SO CAN WE DO A BETTER JOB OF MAYBE TRACKING THAT, PROJECTING TO THAT, SO THAT WHEN WE DO GO TO THE VOTER WITH THIS VERY IMPORTANT QUESTION, IF WE DO, WE HAVE THE MOST UP-TO-DATE, COMPREHENSIVE DATA? YEAH, PRATT IS RESPONSIBLE FOR CALCULATING THOSE FIGURES, AND SO WE DO MAKE ESTIMATES BASED ON WHAT OUR... BEST JUDGMENT. AND SO WE TRY TO WORK WITH THEM, BUT, BUT.

BUT UNFORTUNATELY THAT ALL TEXAS CITIES ARE UP AGAINST.

APPRAISAL DISTRICTS DO NOT GIVE THEIR DATA UNTIL AUGUST. SO SO WE AS YOU, AND WHEN YOU FIRST GIVEN THE BUDGET, WE GIVE YOU ALL OUR BEST GUESS.

BASED BASED ON THE VERY THING THAT YOU SAID, BASED OFF WHAT WE SEE AS GROWTH, BASED OFF, IT'S ALWAYS, IT'S ALWAYS LOOKING AT TODAY BACKWARDS, VALUATIONS ARE NOT FORWARD, THEY LOOK AT TODAY BACKWARDS.

AND SO SO WE CAN GIVE YOU GUYS A REASONABLE IDEA, BUT WE WILL NOT HAVE NUMBERS UNTIL PRACTICE. BUT WE CAN DEFINITELY GIVE YOU GUYS, AGAIN, PART OF THE GOAL TODAY IS TO HELP IDENTIFY. WHAT DO YOU ALL NEED TO KNOW TO DECIDE IF YOU WANT TO PURSUE A VEDA OR NOT. SO YES, WE CAN PURSUE, WE CAN GET YOU GUYS ACTUALS FOR YEAR TO DATE, AND WE CAN ALSO GIVE YOU GUYS KIND OF A POLICY FROM PLANNING DEPARTMENT, AN IDEA AS TO WHAT WE KNOW IS IN THE COOKER RIGHT NOW FOR PROPERTY TAX GROWTH. IF YOU GUYS FEEL THAT WOULD HELP YOU IN MAKING YOUR DECISION. I THINK SO, AND I THINK WHAT I'M DESCRIBING HERE WOULD JUST BE MAYBE NAMED OR LABELED LIKE A GROWTH RATE, AND SO WE SHOULD BE TRACKING WHAT OUR GROWTH RATE IS THROUGH OUR BUILDING SAFETY DEPARTMENT AND BE ABLE TO SEE WHAT THOSE PROJECTS ARE THAT ARE IN THE PIPELINE. BECAUSE YOU ARE LOOKING FORWARD AS MUCH AS WE'VE ASKED YOU TO. I LOVE THE FACT THAT YOU'RE CONSIDERING NOT ONLY 2627, BUT 2728. AND SO YOU'VE GOT PROJECTS THAT ARE IN THE PIPELINE OVER THERE, THAT ARE EXPENSIVE, PROJECTS THAT ARE COMING ONLINE. WE'VE GOT A HUGE GROWTH COMPONENT TO THE CITY OF AMARILLO. AND WE HAVE ENTITIES OUT THERE THAT SOME WE PAY, LIKE PRATT, WE PAY THEM TO DO THAT JOB, BUT OTHERS THAT ARE IN THE COMMUNITY THAT CAN HELP.

SO LET ME SPEAK TO, MAYBE.

REAL QUICK, IF I COULD, ANDREW, DO YOU HAVE ANY CLARIFYING QUESTIONS ON THAT YOU NEED TO ASK? WELL, I WAS JUST GOING TO MENTION, BRAD, IT'S LIKE A JANUARY 1 SNAPSHOT. SO ANYTHING GOING UNDERWAY, RIGHT, WE CAN'T FACTOR IN UNTIL NEXT YEAR, AND IT WILL BE HALFWAY UNDER CONSTRUCTION, HALFWAY VALUED. SO YOU'RE REALLY TALKING PROBABLY TWO YEARS OUT IF YOU'RE LOOKING AT BUILDING SAFETY PERMITS? SO I THINK WE LOOK AT BUILDING SAFETY SO WE CAN PROJECT TO THAT 27-28. THANK YOU. ONE THING THAT I WOULD, YES, SIR? IF WE'VE AGREED THAT WE THINK ACTUALS WOULD BE A GOOD THING TO HAVE, CAN WE BE IN AGREEMENT? IS THAT? I WOULD AGREE, BUT NOT ONLY ACTUALS, AND THIS IS GOING TO GO BACK TO OUR BUDGET, BUT FORECASTS.

SO ACTUALS ARE GOOD, AND REALLY, I DON'T KNOW, I MEAN, BUT MAYBE SIX MONTHS IN, THE ACTUALS WILL REALLY MEAN SOMETHING. BUT TO ME, THE OTHER PART IS NOT ONLY THE ACTUALS, BUT THEN...

FORECASTING OUT FOR THE REST OF THE YEAR AND UPDATE, YOU KNOW, SAYING HERE, BECAUSE I THINK THAT'S GOING TO BE IMPORTANT ACROSS THE BOARD, BUT ESPECIALLY ON THE BUDGET.

WITH KNOWN EXPENSES, BECAUSE I KNOW THERE'S SOME DEPARTMENTS THAT WE KNOW ARE VERY EXPENSE HEAVY TOWARDS THE BACK END. SO I'D SAY ANY ACTUALS THAT WE HAVE, SOMETIMES IT DOESN'T GIVE A PERFECT PICTURE OF ACTUALS VERSUS BUDGET. WE THINK, MAN, THEY'RE ON TREND.

THEY'RE WAY AHEAD. BUT WHEN WE KNOW THAT THERE'S SOME KNOWN EXPENSES COMING AT THE END OF THE YEAR, WHICH WE KNOW, THERE'S A FEW DEPARTMENTS THAT ARE VERY HEAVY, I WOULD SAY IN THAT, IF WE DO THIS, THAT WE NEED TO FACTOR IN THE KNOWN EXPENSES THAT WE KNOW ARE COMING UP. BECAUSE I THINK A SNAPSHOT SOMETIMES IS VERY MISLEADING. SURE. AND AGAIN, AS I WILL CAVEAT WHEN IT COMES TO FORECAST, THE FORECAST IS NOT THE NEW BUDGET FOR THIS YEAR. SO I HAVE TO ALWAYS CAUTION COUNCIL THAT I'VE HAD PREVIOUS COUNCILS IN THE PAST, WHENEVER I GIVE THEM A FORECASTED NUMBER FOR, LET'S SAY, LINE ITEM X, WE FORECAST TO BE. $90,000 AT THE END OF THE YEAR, BUT I SPENT $100,000. THE BUDGET WAS $105,000. COUNCIL, YOU SAID $90,000. COUNCIL, MY BUDGET WAS $105,000. WE THOUGHT $90,000, BUT IT CAME AT $100,000. WE STILL CAME WITHIN BUDGET. SO, REMEMBER, FORECASTS ARE NOT THE NEW BUDGET. WE UNDERSTAND THAT, AND I THINK IT'S A GOOD FAITH ON BOTH OUR ENDS. I MEAN, YOU TRUST US TO MANAGE THAT INFORMATION AS WELL.

COUNCILMAN, DID YOU HAVE ANYTHING ELSE BEFORE I MOVE ON? GO AHEAD.

REAL QUICK. YES, SIR. WHY,

[01:05:02]

OKAY, SO WE'RE GOING TO WAIT UNTIL AFTER THE AUDIT, RIGHT, AND THEN WE'LL GET INTO KIND OF BUDGET SEASON. AND THEN, YOU KNOW, THE ISSUE HAS BEEN ANTIQUATED SYSTEMS, FAT FINGERS, AND MANUAL ENTRIES. LACK OF COMMUNICATION. SO THESE ARE ALL THE THINGS THAT YOU'RE ADDRESSING. THESE ARE ALL THE THINGS THAT YOU'RE PUTTING, YOU KNOW, SEPARATING AND PUTTING IN COMPONENTS. AND SO I'M JUST ASKING, ARE WE THERE YET? LIKE, I THINK WE HOPE TO BE. I WOULD LIKE TO KNOW WHY WE, ACTUALS ARE NOT A NEW PHENOMENA. AND IF IT IS A SOFTWARE ISSUE. WHY HAVE WE NOT DONE THIS IN PREVIOUS DECADES? WE PROVIDE ACTUALS DURING THE BUDGET PROCESS. WE DO. WE'VE JUST NOT, SINCE I'VE BEEN HERE, WE'VE NOT HAD COUNCIL ASK FOR ACTUALS EARLIER IN THE BUDGET PROCESS. SO, YEAH, WE CAN GIVE YOU ALL A MONTHLY SNAPSHOT IF YOU WANT.

IF THE COUNCIL WOULD LIKE TO HAVE IT, WE CAN GIVE YOU A MONTHLY SNAPSHOT, MONTH TO MONTH OR QUARTERLY OR SO FORTH. SAYING, HEY, THIS IS WHERE EVERY BUDGET'S AT. WE CAN DO THAT FOR YOU ALL. I JUST HAVE NOT BEEN HAD THAT ASKED OF ME. WELL, AND I'M NOT POINTING FINGERS AT CURRENT STAFF OR ANYONE. I'M JUST CURIOUS, AS A CITY, WHY WE'VE NOT EVER... I MEAN, THIS ISN'T A NEW ACCOUNTING PHENOMENA. I MEAN, WE'VE BEEN HERE FOR A LONG TIME. AS A CITY, THIS GROUP IS, I MEAN, COMES AND GOES. AND I'M JUST CURIOUS, HISTORICALLY, WHY THE CITY HAS NOT DONE THAT FROM PREVIOUS COUNCILS. AND I GUESS THE ANSWER IS THAT PREVIOUS COUNCILS HAVE NOT ASKED FOR THAT. I COULDN'T ANSWER THAT QUESTION. WELL, I THINK HISTORICALLY, WITH THE BUDGET PROCESS, WE'D USUALLY GET JANUARY, FEBRUARY ACTUALS, AND THEN WE HAVE TO START OUR BUDGET. SO WE HAVE THOSE ACTUALS, AND THEN WE ESTIMATE OR FORECAST THROUGH THE REST OF THE YEAR. BUT WE CAN, OF COURSE, GET ACTUALS AS WE GO. BUT TO BUILD THE BUDGET, BUDGET, YOU GOT TO START SOMEWHERE, SO JUST DEFINITELY START WITH ACTUALS THROUGH A SET AMOUNT PROJECTED FORWARD. LET ME POINT TO ONE THING, THOUGH, COUNCILMAN, THAT'LL HELP YOU.

WE UPDATED OUR FINANCIAL POLICY AND WE UPDATED IT VERY WELL.

SO, PREVIOUS FINANCIAL POLICY ALLOWED FOR A, YOU KNOW, ENTITIES OR DEPARTMENTS WITHIN THE GENERAL FUND TO PASS COSTS AND SHARE COSTS BACK AND FORTH. AND SO THE TENDENCY FOR STAFF WAS TO LOOK AT THE TOTAL FUND AND SAY, WELL, WE'RE WITHIN BUDGET. AND WE'LL JUST MOVE THIS TO FROM, YOU KNOW, THIS DEPARTMENT OVER TO THERE TO COVER. NOW WE'VE RESTRICTED THAT, SO IT'S DEPARTMENT BY DEPARTMENT, YOU KNOW? SO YOU'RE GETTING A MUCH CLOSER LOOK WHERE THOSE DEPARTMENTS ACTUALLY CAN RUN THEIR ACTUALS.

I THINK TWO THINGS. ONE, FINANCIAL POLICY, THE OTHER THING, FUND BALANCE. SO YOU'VE GOT TO KEEP IN MIND, IF YOU'RE RUNNING A DEPARTMENT AND YOU START REPORTING THOSE ACTUALS, YOUR FUND BALANCE BECOMES MORE APPEALING TO COUNCIL TO GO AND PULL MONEY OUT OF.

BECAUSE IT LOOKS LIKE, WELL, THERE'S GOING TO BE A BALANCE THERE. WE'RE GOING TO NEED THAT. LET'S USE THAT MONEY. AND SO I'D SAY HISTORICALLY, THE TENDENCY, JUST HUMAN NATURE, NOT ANY ONE PERSON, BUT IS TO RESERVE THOSE. WHAT IF I NEED IT? YOU KNOW, I MEAN, YOU'RE RESPONSIBLE TO RUN THAT DEPARTMENT. SO YOU WAIT UNTIL YOU GET TO THE END OF THE YEAR AND THEN, YOU KNOW, REPORT. AND AND QUITE HONESTLY, LIKE, IF COUNCIL DOESN'T ASK, WE DON'T TELL, YOU KNOW, SO IT TAKES A MINUTE TO GET ON COUNCIL AND LEARN IT, FIGURE IT ALL OUT. SO I THINK THAT PUTTING IN A MID-YEAR LOOK COUNCIL WOULD BE VERY, VERY HELPFUL. SO I'M NOT SAYING, DO IT MONTHLY. WE DON'T WANT TO PUT ANOTHER BURDEN OF PAPERWORK ON THE EFFICIENCIES WE'VE ALREADY GAINED. BUT A MID-YEAR LOOK WOULD BE TWICE WHAT WE'RE CURRENTLY DOING. WE'RE ONLY LOOKING AT IT ONE YEAR, AND EVEN THEN WE'RE HAVING TO LOOK BACK WITH, YOU KNOW, ESTIMATIONS. STILL DIDN'T HAVE, WE DID NOT HAVE ACTUALS IN OUR LAST BUDGET WORKSHOP.

SO, I MEAN... YOU HAD ACTUALS FOR PRIOR YEARS. WELL, NO, THE CURRENT YEAR THAT WE WERE IN, WE DIDN'T HAVE AN ACTUAL.

YEAH, BECAUSE, YEAH, SO WE HAD, I THINK WE HAD, AS OF A CERTAIN DATE, LIKE, PROBABLY, WAS IT APRIL 1ST? MAYBE MARCH 1ST. WE HAD AT THAT POINT, BECAUSE WE PROVIDE YOU RECONCILED, BECAUSE AGAIN, AS ANDREW SAID, BUDGETS, WE HAVE TO, WHEN WE PREPARE A BUDGET, YOU HAVE TO EVENTUALLY PUT A BOOKMARK IN THE PROCESS, AND THEN YOU HAVE TO START THE BUDGET CALCULATIONS.

OTHERWISE, YOU NEVER GET IT DONE. SO WE... EVERY CITY DOES THIS. YOU DECIDE, OKAY, WE'RE GOING TO GET ACTUALS THROUGH MARCH 1ST, APRIL 1ST.

NOW WE'RE GOING TO START A BUDGET PROCESS TO FIGURE IT OUT. NOW, IF WE CAN UPDATE IT ALONG THE WAY, WE CAN, BUT WE HAVE TO GET THE BUDGET STARTED AT SOME POINT. I THINK OUR GOAL WITH WORKDAY AND OUR BUDGET SOFTWARE IS THAT THOSE...

THOSE DATA SETS ARE SUPPOSED TO SYNC UP SO WE CAN MORE QUICKLY UPDATE THE ACTUALS.

IN THE PAST, WE DIDN'T HAVE THAT CAPABILITY.

FOR THE SAKE OF TIME, COUNCIL, WHAT WE CAN DO IS, YES, WE CAN BRING YOU GUYS BACK ACTUALS, AS RECONCILED ACTUALS THAT WE HAVE TO DATE, AND SO WE CAN BRING THAT BACK

[01:10:01]

BUT IF YOU'D LIKE, WE CAN CONTINUE ON TO OTHER TOPICS TODAY. BECAUSE WE DO HAVE A SIGNIFICANT AMOUNT OF COST RECOVERY THINGS TO COVER AS WELL. SURE. SO BEFORE WE DO THAT, LET ME MAKE MY NEXT TWO POINTS HERE. SO ON THE BALLOT PROPOSAL, I LOVE BUSINESS BECAUSE BUSINESS CAN BE VERY, YOU KNOW, TAKE IT OR GIVE IT. SO, IF YOU GIVE AN OFFER, YOU MAY ALSO BE EXPECTED TO TAKE IT. SO IF YOU'RE IN A PARTNERSHIP WITH SOMEBODY AND... YOU KNOW, THIS IS WHAT I SAY, THE COMPANY'S WORTH. WELL, THEN MY BUSINESS PARTNER CAN ALSO MAKE ME TAKE THAT OFFER. AND SO I THINK WITH, YOU KNOW, STAFF SAYING YOU'RE GIVING US, YOU KNOW, THE POSITION OF TAKE THIS TO THE VOTER. YOU KNOW, WE'RE ALL SAYING THE VOTER'S VOICE MATTERS THE MOST.

I THINK IT'S WONDERFUL THAT THE VOTERS, EVEN THOUGH, YOU KNOW, THERE'S MINIMAL TRUST.

IN OUR SOCIETY RIGHT NOW, THE VOTERS TRUST US TO WORK WITHIN THE EXISTING BUDGET, AND WE MANAGE, WE HELP TO MANAGE THAT BUDGET. WE DON'T GO OVER THAT BUDGET, RIGHT? AND SO WHEN WE WANT TO GO OVER THAT BUDGET, WE HAVE THE OPTION TO GO TO THE VOTER AND ASK THEM, DO YOU WANT ME TO GO OVER YOUR BUDGET? WELL, THE WAY WE REPRESENT THAT, AND WE HAVE IN THE PAST, IN ONE WAY THAT REALLY BOTHERED ME WHEN I WAS A COUNCILMAN FIRST ELECTED WAS WE ASKED THE POLICE AND FIRE TO CARRY THE WATER. AND SO WE KIND OF PUT THEM ON THE CHOPPING BLOCK, BUT WE DIDN'T AS AN ENTITY PUT ANYTHING ELSE ON THE CHOPPING BLOCK. SO WE'RE BEING ASKED TO COME UP VERY DIRECTLY, WHAT ARE YOU GOING TO CUT? WHAT DO YOU WANT TO LOSE? THESE ARE THE HARD DECISIONS.

WE'VE GOT TO MAKE THE HARD DECISIONS.

WHAT DOES IT LOOK LIKE IF YOU PUT A BALLOT PROPOSAL WITH CERTAIN PROGRAMS THAT YOU ASK YOUR VOTER? DO YOU WANT TO LOSE THIS PROGRAM? SO, YOU KNOW, I'LL PICK ON ONE JUST BECAUSE I REALLY LIKE HIM AND HE DOES A GREAT JOB, BUT, YOU KNOW, POOLS, INSPECTION OF POOLS. SO, YOU KNOW, I MEAN, WE'RE GOING TO TALK ABOUT A BUDGET OF.

HERE'S HOW MUCH IT COSTS TO INSPECT ALL THESE POOLS.

HERE'S HOW MUCH MORE WE NEED TO CHARGE TO GO AND INSPECT THESE POOLS. I MEAN, HAVE WE EVER HAD A... A LOSS OF LIFE DUE TO, YOU KNOW, A CHLORINE ISSUE IN A POOL? I DON'T KNOW. BUT, I MEAN, THAT WOULD BE SOMETHING YOU COULD ASK YOUR VOTER. DO WE WANT TO SPEND YOUR MONEY IN POOL INSPECTIONS? OR IS THAT SOMETHING THAT'S BEING, YOU KNOW, REQUIRED BY THE STATE? MAYBE. MAYBE THERE'S A MINIMUM, YOU KNOW, STANDARD THAT WE HAVE TO.

BUT THEN YOU LOOK AT A LOT OF THE DEPARTMENTS THAT ARE GRANT FUNDED. AND ALL OF THE EDUCATION THAT GOES THROUGH THAT. LIKE, IF WE START SHOWING PROGRAMS THAT WE'RE PAYING FOR OUT OF THE GENERAL FUND, AND THEN WE SHOW PROGRAMS THAT PAY FOR THEMSELVES, THIS PIE GETS WAY SMALLER AND WAY EASIER FOR YOUR PUBLIC TO DIGEST.

BECAUSE THEY THINK WE PAY FOR EVERYTHING OUT OF THEIR TAXES. THEY DON'T REALIZE THAT COMMUNITY DEVELOPMENT IS 100% FUNDED BY GRANT FUNDS. SO I WOULD ASK, AS WE WALK THROUGH THIS CONVERSATION, IF WE ARE GOING TO PUT SOMETHING ON THE BALLOT, YOU KNOW, HERE'S YOUR 5%, YOUR 5 CENTS THAT WE'RE ASKING FOR, FOR OUR LOCAL HEROES TO DO THEIR JOB. HERE ARE THE 5 PROGRAMS THAT WE'RE ASKING YOU TO TELL US IF YOU WANT TO REMOVE. BECAUSE IT IS OUR BUDGET. AND I THINK THAT LEADERSHIP, YOU KNOW, IF YOU SAY YOU'RE WILLING TO MAKE THE HARD DECISIONS, I MEAN, THAT'S A HARD ONE. ARE YOU WILLING TO ACTUALLY GO AND ASK THEM? SO IF WE DID THAT, WOULD WE RESTRICT COUNCIL'S USE OF COS? SO IF WE'RE GOING TO GO TO THE VOTER, WE'RE GOING TO SAY, LOOK, WE NEED 5% BECAUSE WE'VE DONE A GOOD JOB OF MAKING SURE WE MAPPED OUT ALL THE YEAR. ARE WE GOING TO TURN AROUND SIX MONTHS LATER AND THEN HAVE COUNCIL LOOK AT AN OPTION OF, WELL, WE ALSO NEED TO BORROW $12 MILLION HERE FOR THAT. WE ALSO NEED TO BORROW $10 MILLION FOR THAT. BECAUSE THEN WHAT WE'VE DONE IS WE'VE MISREPRESENTED TO OUR VOTER.

WHAT OUR ACTUALLY NEED WAS.

AND SO WOULD WE AS A COUNCIL, AND PERHAPS A POLICY, RESTRICT THOSE COS TO, LIKE, STRICTLY EMERGENCY USE, WHERE, YOU KNOW, THE POLICE DEPARTMENT HAS TO BURN DOWN BEFORE YOU WOULD GO AND BORROW THAT MONEY? AND ARE WE THEN GOING TO HOLD OURSELVES ACCOUNTABLE THROUGH THOSE 12 MONTHS OF, HEY, WE GOT ALL WE GOT. WE GOT TO MAKE IT WORK, YOU KNOW. SO.

I KNOW EMERGENCIES AND THE WHAT-IFS CAN COME IN THERE, BUT AS A STIPULATION OF SELF-ACCOUNTABILITY, COUNSEL, THIS IS YOUR QUESTION, YOU'VE FORECASTED, YOU'VE SPOKEN TO YOUR VOTERS, HEY, HERE'S HOW WE'RE GOING TO GET TO STREETS. WE'RE GOING TO TRY TO BORROW $12 MILLION EVERY YEAR IN ORDER TO GO AND GET THOSE ADDITIONAL STREETS ON TOP OF OUR STREET FUND. SO THEY HAVE CONSISTENCY, SO THEY KNOW THAT THEY CAN PLAN TWO YEARS OUT. WE'VE BEEN WILLING TO TAKE THAT HIT. SOME OF OUR VOTERS DON'T LIKE THAT.

BUT IT IS US MANAGING WITHIN WHAT THEY'VE GIVEN US.

WE ONLY HAVE SO MUCH MONEY, AND THIS IS SOMETHING THAT WE CAN DO. NOW, UNPOPULAR OR NOT, IT'S BENEFITED THE CITY GREATLY IN HOW WE'RE PLANNING. SO IF WE WANT TO REMOVE THAT AND GO

[01:15:01]

SO IF YOU WANT TO CONTINUE ON WITH YOUR PROGRAM, THANK YOU.

ABSOLUTELY. SO AT THIS POINT HERE, MIKE, WHAT I HAVE SO FAR IS. WE WILL BRING BACK TO YOU ALL ACTUALS, AND AT A FUTURE COUNCIL MEETING, WE'LL BRING BACK TO YOU SOME GROWTH PROJECTIONS.

AND SO FOR THAT, WE CAN DO THAT. ALL RIGHT, COUNCIL, I'D RECOMMEND IT IS ALMOST 1030. WE'RE HALFWAY THROUGH OUR SESSION HERE. I RECOMMEND WE TAKE A SHORT BREAK SO WE CAN FRESHEN UP AND GET READY TO COME BACK. SO, YES.

ARE YOU GOOD TO GO AHEAD AND WE'LL KICK IT BACK OFF? ALL RIGHT, BACK IN SESSION. THANK YOU. ALL RIGHT, WHERE'S MY SLIDE? GET BACK TO THE RIGHT SLIDE HERE. YES, OKAY. ALL RIGHT, NEXT TOPIC I HAVE FOR THE COUNCIL IS TO DISCUSS THE SUMMER. SO WE'VE ALREADY KIND OF DISCUSSED A FEW OF THESE THINGS HERE. I THINK WE HAVE A FEW GENERAL IDEAS FROM THE COUNCIL ABOUT A FEW THINGS WE CAN BRING BACK TO YOU, BUT ONE OF MY GOALS FOR TODAY IS TO KIND OF GET SOME GUIDANCE ON WHAT WOULD COUNCIL LIKE TO SEE PRESENTED THIS SUMMER.

SO HOW WOULD YOU LIKE THE BUDGET TO BE PRESENTED TO YOU, WHETHER IT'S HOW MANY DAYS DO I BUDGET FOR THE INITIAL WORKSHOP, THREE DAYS, FIVE DAYS, BECAUSE EVEN THAT PLAYS, THAT HELPS STAFF KNOW. OKAY, I'VE GOT ONE DAY TO GET THIS DONE, OR I'VE GOT FIVE DAYS TO GET THIS DONE. SO THOSE KIND OF THINGS. WHAT KIND OF REPORTS, FORMS, DATA, THOSE KIND OF THINGS WE CAN BE WORKING ON.

WHAT KIND OF COLUMNS, WHAT KIND OF PERCENTAGES, FORECASTING VALUES, THOSE KIND OF THINGS. SO ANYTHING YOU DON'T WANT TALKED ABOUT, ANYTHING, GRAYSON, DON'T EVEN THINK ABOUT BRINGING THAT TO US. OR, GRAYSON, WE'D LIKE TO KIND OF SEE A DIRECTION TOWARD THIS. SO THIS IS JUST ONE SLIDE HERE. SO MY REQUEST TODAY IS TO KIND OF GET SOME GUIDANCE FROM THE COUNCIL AS TO FLOW, AS TO ORDER THE PRESENTATION THIS SUMMER. THESE ARE THINGS THAT I'M GOING TO HAND OFF TO LOLA WHEN SHE GETS HERE, BUT IT WILL HELP LOLA AND HER TEAM HELP BUILD THE PRESENTATION FOR THIS SUMMER.

TO KIND OF KNOW FROM YOU ALL WHAT WOULD YOU LIKE TO HAVE IN FRONT OF YOU, IN WHAT ORDER, AND SO FORTH.

SO WITH THAT, I WILL AGAIN STOP AND KIND OF GET SOME FEEDBACK FROM YOU ALL. AND AGAIN, YOU DON'T HAVE TO, NECESSARILY... ALL AGREE ON SOMETHING, NECESSARILY, BUT JUST KIND OF GETTING INPUT FROM EVERYONE TO KIND OF KNOW WHAT YOU'D LIKE TO SEE. WELL, I MEAN, I THINK WE HAD A GOOD DISCUSSION OF THIS LAST YEAR.

SO DO WE HAVE ALL THE NOTES FROM LAST YEAR? WE HAVE LOTS OF NOTES. WELL, I THINK LAST YEAR WE REALLY LINED THAT OUT FOR WHAT WE WANTED TO SEE. I THINK ACTUALS WAS THE BIGGEST THING, AND I KNOW COME BUDGET TIME.

THERE'S SOME NUMBERS WE DON'T KNOW, RIGHT? LIKE YOU JUST SAID, WE'RE FORECASTING. BUT WE WANT THE MOST CURRENT NUMBERS. AND THEN I THINK ONE THING WE WANT IS THE VARIANCE FROM LAST YEAR. ACTUAL BUDGET WHERE THEY WERE TO WHERE THEY ARE THIS YEAR. I'M TRYING TO THINK, WHAT OTHER COLUMNS DID WE REQUEST? CIP? AS FAR AS THE PROJECTS? SO ONE THING THAT'S BEEN VERY DIFFICULT TO TRACK, AND I THINK YOU'VE DONE A GOOD JOB OF HEADING UP A COMMITTEE WITH STAFF, WHICH IS GOING BACKWARDS AND CLEANING UP THE CIP PROJECTS BY BRINGING THEM FORWARD, CLOSING THEM OUT. BUT THEN WHERE WE REALLY ENDED UP IS THAT EXERCISE IS BRINGING US TO A PLACE TO WHERE COUNCIL IS WAITING ON A, LIKE WE'LL CALL IT A CIP UPDATE, SO WE CAN ACCUMULATE ALL OF THOSE PROJECTS THAT WERE.

COMPLETED, YOU KNOW, WHAT WAS THE BUDGET AMOUNT OR APPROPRIATED AMOUNT VERSUS WHAT WAS THE ACTUAL, AND THEN THAT MONEY THAT'S LEFT THERE. IF THERE'S A POTENTIAL, OR LIKE, IF WE HAD A PROJECT THAT DIDN'T MAKE, THE REAPPROPRIATION OF THAT. AND SO HOPEFULLY WE COULD DO THAT TWICE A YEAR, MID-YEAR AS WELL AS BUDGET, BUT CIP ACTUALS WOULD BE VERY IMPORTANT. ON TOP OF THAT, WHAT I WOULD SAY IS THAT QUARTERLY INVESTMENT EARNINGS OR HOLDINGS REPORT THAT SAYS, HERE'S WHERE ALL THE MONEY SITS. HERE'S ALL YOUR CASH, HERE'S ALL YOUR CDS, YOUR TREASURIES, YOUR NOTES, EVERYTHING LIKE THAT, BECAUSE WE WANT TO BE ABLE TO SEE THAT INTEREST GROWTH.

AND SO BEING ABLE TO TRACK THAT INTEREST EARNINGS EVERY YEAR AND NOT KIND OF LET THAT GET WASHED AWAY IN THE OVERALL BUDGET WOULD BE VERY HELPFUL. BECAUSE A MILLION DOLLARS' WORTH OF INTEREST EARNINGS IS VERY EASILY POTENTIAL IN THE WAY IN WHICH WE'RE REPORTING THAT.

THOSE WOULD BE THE TWO THAT I'M KEYING IN ON, ON TOP OF WHAT DON WOULD SAY WOULD BE TO GO BACK AND LOOK AT THE REST OF THE NOTES. I REMEMBER TRENDING WAS A BIG DEAL, YOU KNOW, BEING ABLE TO SEE WHAT THE TRENDS LOOK LIKE.

[01:20:01]

BUT THE FIRST TWO YEARS, WE WERE TAKING IN MORE DOLLARS, BUT THE TAX RATE WENT DOWN. I THINK JUST A REMINDER OF HOW THOSE THINGS WORK.

VALUATIONS, YES. YEAH, AND PARTICULARLY, AND AGAIN, YOU KNOW, THERE'S NO LIMIT ON THE INS SIDE. YOU KNOW, AND THE M&O SIDE. AND THEN JUST A QUICK LOOK AT ALL OF OUR DEBT STATUS.

IN OTHER WORDS, WHERE ARE WE ON, WHAT DEBT HAVE WE ISSUED THAT WE'RE STILL PAYING ON? WHEN DOES THAT ROLL OFF? AGAIN, THAT'S SOMETHING THAT I'D LIKE TO BE ABLE TO TAKE A LOOK AT. I DO WANT TO, AND I THINK I EMAILED A COPY OF THIS TO, AND I'LL PASS A COPY DOWN FOR EVERYBODY TO TAKE A LOOK AT. BUT.

TO THE MAYOR'S POINT, BECAUSE WE'VE TALKED ABOUT THIS A COUPLE OF TIMES, I HAVE SOMETHING THAT I JUST WANTED TO SHARE. IT'S SOMETHING THAT WOULD BE A FORMAT, IF WE COULD GET IT WORKED INTO OUR BUDGET, AND THIS WOULD BE WHAT I FIND SOMETIMES IS.

WHILE THERE'S A 800-PAGE BUDGET, THAT'S NOT FOR US TO LIVE ON. PAGE 289 OF LOOKING AT HOW MANY PENCILS ARE SPENT, OR OFFICE SUPPLIES. WHAT I WOULD LIKE TO SEE IS SOMETHING THAT PROVIDES US A GOOD GENERAL OVERVIEW OF THE VARIOUS BUDGETS. AND SO THIS ONE HERE WOULD JUST BE, AND THESE ARE NOT ACTUAL NUMBERS, BUT JUST TO SHOW YOU WHAT I THINK WOULD BE MOST BENEFICIAL. I KNOW FOR ME, I DON'T KNOW FOR COUNCIL, BUT THIS WOULD JUST BE A GENERAL FUND SUMMARY. BUT I WOULD LIKE TO SEE THIS FOR AIRPORT, FOR PARKS AND RECREATION, FOR THE OTHER DEPARTMENTS, WHICH IS... AND IT TAKES, AND THE TOP AREA IS REVENUE.

SO THIS TAKES FY23, FY24. IT HAS FY25 BUDGET. AND THEN, TO YOUR POINT, THIS WOULD BE THE FORECAST. SO THIS WOULD BE.

AT WHATEVER POINT, IT MAY BE SEVEN MONTHS OF ACTUAL, FIVE MONTHS OF FORECAST. AND THEN WHAT YOU'RE LOOKING AT, THE BUDGET. TO ME, THE MOST IMPORTANT PART OF THIS IS THE LAST THREE COLUMNS, WHICH IS LOOKING AT A PERCENTAGE DIFFERENCE.

BACK TO THAT TREND OF BEING ABLE TO SAY, OKAY, PROPERTY TAX, WE WERE UP 4.92, UP 7.53, 6.53. DOES THAT CAUSE US ANY CONCERN? WAIT A MINUTE, LET'S GO DOWN TO TRANSIT. WE WERE DOWN 11%.

NOW WE'VE BEEN UP, AND THESE ARE NOT ACTUAL NUMBERS, BY THE WAY, BUT 15% OR 14%. WHY IS THAT? TO ME, IT JUST ALLOWS YOU, AT A SNAPSHOT, TO REALLY BE ABLE TO TAKE A QUICK LOOK AT WHAT ARE THE TRENDS ON. YOU KNOW THE SPENDING IN THESE AREAS. BECAUSE I THINK IT JUST ALLOWS YOU TO VERY QUICKLY BE ABLE TO SAY, OH, HERE, TO ASK QUESTIONS, PRETTY QUICKLY, SO QUICKLY, JUST AS A POINT OF ORDER.

WE'VE GOT A DOCUMENT HERE THAT'S BEING SHARED ONLINE AND WE'VE GOT A HANDOUT TO MAKE SURE WE WE RECORD IT CORRECTLY IN THE MINUTES. AND FOR EVERYBODY TO HEAR. THIS IS AN EXAMPLE OR A DRAFT OF THE TEMPLATE THAT COUNCILMAN SIMPSON'S PRESENTING. THESE NUMBERS ARE NOT REFERENCED TO EXISTING ACTUALS OR PROJECTIONS. SO THESE NUMBERS ARE JUST EXAMPLES. I JUST TRIED TO PUT SOME NUMBERS IN. I STARTED TO PUT IN THE ACTUALS, BUT THEN I HAVE A LIFE, SO IT WOULD HAVE TAKEN ME ABOUT 10 YEARS TO DO THAT. THE OTHER AREA, SO REVENUE IS AN AREA. I WOULD LIKE TO SEE EXPENSES BY DEPARTMENT. SO JUST A LINE ITEM THAT SAYS QUICKLY, I CAN SAY ALL THE DEPARTMENTS THAT ARE IN THE GENERAL FUND. AND THEN EXPENSES BY CATEGORY. SO THIS WOULD BE, OKAY, ALL TOGETHER, WHAT ARE THE PERSONAL SERVICES, OVERTIME PAY, THIS WOULD BE FOR EVERYTHING THAT FALLS UNDER THE GENERAL FUND. AND THEN THE LAST TWO ARE EMPLOYEE

[01:25:01]

CORRECT. I'D JUST LIKE TO KIND OF LINE THIS OUT TO BE ABLE TO BETTER TRACK THIS AS AN ORGANIZATION, DEPENDING ON, YOU KNOW, WHICH ONE IT IS. AND THEN THE OTHER THING THAT I THINK WOULD BE BENEFICIAL IS JUST WHERE ARE WE ON FULL-TIME EQUIVALENTS? SO FTES, WHICH IS BASICALLY, YOU KNOW, SOME OF THEM MAY BE PART-TIME, SOME OF THEM MAY BE FULL-TIME, BUT ULTIMATELY YOU'RE ADDING THEM UP, YOU KNOW, DIVIDING THEM BY 40 TO DETERMINE THE FTES THAT WE CAN SEE. SEE THE TRENDS ON THAT.

SO DON'T KNOW IF THE SYSTEM WILL ALLOW US TO DO THAT BY THE TIME WE GET ON THIS YEAR'S BUDGET, BUT BOY, THIS WOULD BE, I THINK IT WOULD BE REALLY BENEFICIAL.

WHAT WE WOULD NEED TO DO IF COUNCIL WERE TO KIND OF AGREE IN SPIRIT TO THIS KIND OF FORMAT, WHAT I WANT TO DO IS WE HAVE A THIRD PARTY THAT DESIGNS OUR REPORTING OUT OF OUR SOFTWARE. THAT WAY, THE SOFTWARE, IT'S A BUNCH OF DATA. YOU HAVE TO DESIGN REPORTS THAT I WANT, THIS REPORT THAT HAS THESE COLUMNS FROM THESE LOCATIONS, AND THEN IT PRINTS OUT THAT WAY. SO WE WOULD NEED TO ENGAGE WITH OUR THIRD PARTY RIGHT AWAY AND HAVE THEM START PREPARING SOME KIND OF REPORTING MECHANISM TO DO THIS. OTHERWISE, WE'D HAVE TO LOOK AT EXCEL. AND MY PREFERENCE WOULD BE SOMETHING THAT THE SOFTWARE CAN PRODUCE THAT WOULD PULL FROM THE SOFTWARE TO DO SOMETHING LIKE THIS. I'D RATHER NOT HAVE EXCEL. I'D RATHER HAVE, TO ME... A NUMBER IN EXCEL REALLY DOESN'T MEAN ANYTHING.

THE NUMBER IN THE SYSTEM IS WHAT MATTERS, THE BUDGETING SYSTEM. SO IF WE COULD LOOK AT THAT. YEAH, AND AGAIN, I'D HAVE TO GIVE A STAFF, I BELIEVE THIS IS POSSIBLE WITH OUR THIRD PARTY, BUT LET ME CONFIRM WITH THEM THAT I CAN HEAD THAT DIRECTION.

IF COUNCIL WOULD AGREE IN SPIRIT TO THESE KIND OF COLUMNS, THIS KIND OF CATEGORY TYPE APPROACH.

RICH, IS THIS DOABLE WITH THESE COLUMNS? YEAH, IT SHOULD BE DOABLE.

WITHIN THE SYSTEM? WITHIN OUR SOFTWARE? YEAH, ONCE THEY GET TO THE POINT THAT THEY'RE SEEING... ACTUALS AND THAT REPORTING IS DONE. THIS IS JUST ANOTHER FORM OF REPORT.

SO IT WOULD BE SOMETHING WE'D PARTNER WITH OUR WORKDAY CONSULTANT TO DO. SO RICH, CAN THIS TIE BACK TO THE ACCOUNT BALANCES? SO, LIKE, THE ONE THING THAT I'M HEARING COUNCILMAN SIMPSON BRING BACK UP AGAIN IS THAT.

IN PREVIOUS YEARS, THE BUDGET WAS NEVER TIED TO THE ACTUAL ACCOUNT BALANCE, MEANING IT WAS A... A PRODUCT THAT HAD TO BE PRODUCED MANUALLY, IT WASN'T EXPORTED INTO THAT.

SO IF WE CREATE THIS SYSTEM RIGHT HERE ON A TEMPLATE, CAN WE EXPORT DIRECTLY FROM OUR ACCOUNT BALANCES INTO THESE? TO REFLECT THE TOTALS? I'D LOOK TO KATRINA JUST FROM A PROCESS STANDPOINT, WHAT THEY HAVE ALREADY TO ANSWER THAT, BECAUSE I'M GOING TO TELL YOU, YES, ANYTHING IS POSSIBLE. OKAY. I THINK ONE OTHER THING THAT IS ABSOLUTELY CRUCIAL IN THIS, AND WE TALKED ABOUT IT BEFORE, BUT I MEAN, THE ACTUALS ARE THE ACTUALS.

WE'LL HAVE THOSE. BUT TO ME, THE MOST IMPORTANT COLUMN IS THE FORECAST, BECAUSE TO ME, FORECASTING AS ACCURATELY AS POSSIBLE MAKES... IT'S GOING TO BE CRUCIAL TO BE ABLE TO HAVE A FORECAST, BECAUSE IF YOU DON'T REALLY HAVE A FORECAST, THAT'S THAT'S CORRECT. THE PERCENTAGES REALLY DON'T MEAN ANYTHING. SO, YOU KNOW, JUST MAKING SURE, BECAUSE I THINK WE KIND OF HAVE NAVIGATED FOR THAT OVER THE LAST COUPLE YEARS. BUT I THINK MAKING SURE THAT THE FORECAST, I THINK WOULD BE, WOULD BE THE MOST IMPORTANT PART OF THAT. AND MAKING SURE THAT FORECAST IS AS ACCURATE AS POSSIBLE. IT MAY START OUT AT 7 PLUS 5. WE MAY COME BACK AND LOOK AT THE BUDGET AGAIN. IT'S 8 PLUS 4, KIND OF CONTINUING TO GO THROUGH THAT. AND THEN THE OTHER THING IS, AND I DON'T KNOW HOW TO MAYBE PUT THIS, BUT I FELT LIKE OUR MOST PRODUCTIVE DISCUSSIONS ON LAST YEAR'S BUDGET WAS KIND OF TOWARDS THE LAST DAY. WHEN WE KIND OF LOOKED AT THE BIG ITEMS. I DON'T KNOW IF YOU REMEMBER THAT, BUT TO ME, THE MORE THAT WE CAN STAY AT A HIGHER LEVEL. UH, AND LOOKING, SO WE WERE LOOKING AT, OKAY, HERE'S, HERE'S THE GAP THAT WE HAVE TO TO FILL ON THE BUDGET. HERE WERE SOME OF THE BIG ITEMS, THE MORE THAT WE CAN KIND OF STAY ON THOSE LARGER ITEMS, I THINK WOULD BE MORE BENEFICIAL. SO THERE'S SOMETHING THAT JUST SAYS, AND AGAIN, I DON'T KNOW WHEN WE GO INTO THIS BUDGET. IF WE SAID HERE ARE THE 15 ITEMS THAT ARE HAVING A SIGNIFICANT IMPACT ON THE BUDGET BECAUSE THEY'RE NEW ITEMS. THIS YEAR. THERE'S SOMETHING THAT WE CHANGED AND WE HAD, UH, YOU KNOW, WE HAD POSITIVES AND NEGATIVES, I MEAN, OBVIOUSLY IF THERE'S REVENUE THAT WE WENT IN AND ADJUST. THAT WOULD BE BENEFICIAL AS WELL. AND THEN, JUST FOR FORMAT, I WOULD THROW ONE OTHER IDEA OUT, IS, WOULD IT BE BENEFICIAL TO LOOK AT OUR REVENUES FIRST? ABSOLUTELY. IN OTHER WORDS, BEFORE WE EVEN START EXPENSES, I MEAN, THE REVENUES ARE, YOUR EXPENSES ARE GOING TO BE DETERMINED BY THE...

BY THE AMOUNT OF REVENUE. AND IF YOU DON'T HAVE YOUR REVENUE CORRECTLY, WELL, THEN YOU'VE GOT TO GO IN AND BE ABLE TO DO THAT. SO

[01:30:01]

YOU KNOW? OR WHETHER WE'RE GOING TO HAVE TO GET MORE OUT OF EXPENSES TO BE ABLE TO DO THAT. SO THOSE ARE JUST SOME OF THE THINGS I WANT TO BRING UP. VERY GOOD INPUT, SO I I REALLY APPRECIATE THIS.

WANT TO MAKE SURE COUNCIL HAS AN OPPORTUNITY LOOKING AT THIS. WHAT WE ARE DOING IS DIRECTING STAFF TO IMPLEMENT THIS BASED ON THIS TEMPLATE. AND AND IT'S PRETTY, UH, I'D SAY EXHAUSTED, LIKE, I THINK YOU'VE CAUGHT ALL OF THE LINE ITEMS AND DONE A PRETTY GOOD JOB. SO I'M NOT SAYING THERE'S ANYTHING MISSING, BUT IF YOU HAD SOMETHING IN ADDITION TO. SO, AS AN EXAMPLE, ONCE AGAIN, TO KIND OF GO BACK TO THE CIP, WHAT WOULD BE GREAT IS TO SEE CIP LINE ITEMS IN ALL APPROPRIATIONS OF CIP, $250 MILLION OF PROJECTS THAT ARE SITTING THERE, THANK YOU. CIP RIGHT ON THIS SUMMARY. WILL WE WE CAPITALIZE FIFTY MILLION? UH...

CIP MEANING CONSTRUCTION IN PROGRESS, NOT CAPITAL IMPROVEMENT PROJECT, BUT HERE'S YOUR CIP CONSTRUCTION IN PROGRESS. TWO HUNDRED MILLION DOLLARS.

MOVING FORWARD, YOU, YOU'D BE ABLE TO TRACK THAT NUMBER A LITTLE BIT BETTER.

RIGHT NOW. WE'RE HAVING A HARDER TIME, YOU KNOW, WE WE ISSUE THE MONEY IN IT.

IT SITS FOR A COUPLE YEARS.

CUMULATIVE, UH... THE OTHER THING WOULD BE IF WE COULD DEFINE OTHER REVENUE, THAT'S ONE OTHER AREA THAT WE CAN GET LOST. SO LET'S SAY WE HAD A LAWSUIT, SETTLEMENT AND PROCEEDS THAT CAME IN FROM THERE. CAN WE TRACK THOSE REVENUES THERE SO THAT WE CAN MAKE SURE WE'RE ADEQUATELY ACCOUNTING FOR ALL THE REVENUES? AND SO SOMETIMES WHEN IT JUST SAYS OTHER, WE DON'T KNOW, YOU KNOW, DID WE SELL A PROPERTY? SO, WELL, WE SOLD THAT BUILDING, MILLION-DOLLAR VALUE.

ABSOLUTELY. AND REMEMBER, OF COURSE, AS I MEAN, THE BUDGET IS VERY BIG. AND SO WHEN YOU GET THE BUDGET. ANY TIME THAT YOU HAVE A QUESTION LIKE THAT, LIKE YOU SEE AN UNKNOWN, WHAT'S THE INFORMATION HERE, PLEASE ASK AND WE WILL GET YOU THE INFORMATION. I THINK THE OTHER BENEFIT OF HAVING THIS, AGAIN, AS EARLY AS WE POSSIBLY CAN.

IN THIS FORMAT, IT ALLOWS US TO HAVE A LITTLE BIT OF TIME TO BE ABLE TO LOOK AT IT AND BE ABLE TO FORMULATE THOSE QUESTIONS.

OR IT MAY BE SOMETHING THAT'S JUST LIKE, I CAN GET AN ANSWER TO PRETTY QUICKLY. BUT I THINK THE MORE THAT WE KIND OF STAY.

AT THE HIGHER LEVEL AND THEN DIG DOWN IF WE NEED TO, I THINK IT'S JUST GOING TO ALLOW US TO BE A LOT MORE EFFICIENT IN BEING ABLE TO MAKE THE BEST USE OF OUR TIME. WHEN WE'RE REVIEWING THE BUDGET.

ABSOLUTELY. THIS IS ALL VERY GOOD INPUT. I THINK THIS WILL REALLY GIVE LOLA AND HER TEAM SOME GOOD GUIDING PARAMETERS TO WORK WITH. AND SO, UNLESS COUNCIL HAS ANY OTHER IDEAS, WE CAN MOVE ON TO COST RECOVERY. WE HAVE ONE MORE HOUR LEFT BEFORE LUNCH.

UNLESS THERE'S MORE INPUT FOR THE BUDGET THIS SUMMER.

VERY GOOD. THANK YOU ALL. ALL RIGHT. OUR LAST TOPIC WE HAVE TODAY FOR OUR FINAL HOUR, AGAIN, JUST FOR OUR TIMELINE. TODAY, AGAIN, WE ROUGHLY BUDGETED AN HOUR FOR LUNCH FOR YOU ALL, FOR THE COUNCIL. THEN WE HAVE EXECUTIVE SESSION BEGINNING AT 1 O'CLOCK, WITH, OF COURSE, REGULAR AT 3 O'CLOCK. ALL RIGHT. MY FINAL SET OF SLIDES, WHICH IS HALF THE SLIDES STILL, ARE COST RECOVERY. AS YOU RECALL, LAST YEAR, CITY COUNCIL DISCUSSED, OKAY, GRAYSON, WE'VE BEEN TALKING ABOUT PROPERTY TAX, WE'VE BEEN TALKING ABOUT SALES TAX, WE'VE BEEN TALKING ABOUT UTILITY REVENUE. HOW ABOUT OUR OTHER REVENUES, THE OTHER THINGS THAT HELP MAKE UP THE BUDGET? AND SO HOW ABOUT, HOW ARE THOSE DOING? ARE THOSE KEEPING UP? ARE THOSE APPROPRIATE? OR ARE OUR TAXPAYERS SUBSIDIZING SERVICES THAT THEY MAY NOT NECESSARILY BE USING INSTEAD OF OTHER PEOPLE ARE USING? SO... AGAIN, THE THOUGHT WAS THE GOLF BALL IDEA. SO WITH THIS, I TASKED STAFF OVER THE LAST SEVERAL MONTHS WITH GOING BACK TO THE BUDGETS. AND LOOKING AT ALL THEIR PROGRAMS, ALL THEIR EXPENSES, EVERYTHING THEY'VE GOT, AND IDENTIFYING THINGS THAT WHAT ARE SERVICES WE'RE PROVIDING THAT HAVE A REVENUE TOWARD THAT. AGAIN, AN EXAMPLE LIKE PERMITTING. YOU GO IN TO GET A PERMIT, THERE'S AN EXPENSE FOR THAT.

DOES THAT PERMIT COVER THE COST, OR ARE TAXPAYERS SUBSIDIZING THAT PERMIT FOR THAT DEVELOPER? THOSE KIND OF THINGS. THAT'S THE KIND OF THINGS WE'RE LOOKING AT.

AND SO WITH THIS, AGAIN, THE WHOLE POINT OF ALL OF THIS CONVERSATION NOW IS TO BE LOOKING AT NON-PROPERTY TAX REVENUES, THINGS THAT RIGHT NOW THE PROPERTY TAX AND SALES TAX ARE HAVING TO MAKE UP GROUND FOR.

SO, AGAIN, THE A LOT OF THE PROCESS HERE WITH THIS WAS WE WERE LOOKING AT, AGAIN, COST RECOVERY, NOT COST CUTTING. AGAIN, THAT'S OUR EARLIER CONVERSATION, WHICH I THINK, AS A COUNCIL SAW, IT'S A VERY CHALLENGING TOPIC TO TACKLE. SO WHAT IT IS THAT

[01:35:01]

SO WE WERE SEEING, AGAIN, EXAMPLES OF WHERE. WHERE FEES HAVE BEEN OUTPACED BY COST AS INFLATION OCCURS, AS PRICES IN BUSINESS HAS INCREASED, OUR FEES HAVE NOT KEPT UP. I MEAN, THERE ARE SEVERAL EXAMPLES OF FEES THAT HAVE NOT BEEN CHANGED IN 20 YEARS. I GUARANTEE YOU COSTS HAVE CHANGED IN 20 YEARS.

AND SO THERE'S EXAMPLES OF THAT. WE'RE LOOKING AT ALIGNING OUR PRACTICE WITH BEST PRACTICES. WHAT ARE OUR PEER CITIES DOING? WHAT'S THE INDUSTRY DOING? HOW DOES OUR FEE COMPARE TO THOSE? TO THOSE STANDARDS. LOOKING AT LEGAL CONSTRAINTS, THERE ARE SOME FEES THAT YOU CANNOT TOUCH. FOR EXAMPLE, VITAL STATISTICS OF BIRTH AND DEATH CERTIFICATES, YOU CANNOT INCREASE THAT FEE.

STATE SETS THAT RATE. SO IF YOU TAKE A LOSS THERE, THE STATE SAYS, TOUGH. WE DON'T CARE.

JUST BE BLUNT LIKE THAT. AND SO THAT'S SOME THINGS THAT WE HAVE TO DEAL WITH IN SOME OF OUR FEES. WE ALSO HAVE TO CONSIDER PUBLIC AND POLITICAL SENSITIVITIES. THERE'S ONE THING, LIKE EXAMPLE, WE'LL GET TO ENVIRONMENTAL HEALTH, THE DAYCARE FEE. LEGISLATORS HAVE SAID, YOU KNOW WHAT, WE'RE GOING TO HELP, WE'RE GOING TO ENCOURAGE LOCAL GOVERNMENTS, AND I SAY, ENCOURAGE, YOU KNOW, THE STATE ALWAYS FORCES YOU.

THEY SAY, YOU KNOW, YOU WILL SUBSIDIZE THIS AREA HERE. AND SO THERE ARE SOME THINGS THAT POLITICALLY AND SOCIALLY IN OUR COMMUNITY THAT THE CITIZENS JUST, YOU KNOW WHAT, PUT IT ON MY TAX ROLL INSTEAD. I DON'T WANT TO HAVE A FEE TOWARDS THAT. SO WE HAVE TO BEAR THOSE THINGS IN MIND. SO WITH THIS, AS STAFF ARE LOOKING AT THIS, WE BROUGHT TO YOU ALL CONCEPTS. WE DID NOT SIT DOWN AND WORK OUT EVERY LOGISTICAL FACTOR HERE. WE DON'T WANT TO DO THAT UNTIL COUNCIL SAYS, GOOD IDEA, FLESH IT OUT, OR BAD IDEA. SO WITH THIS, THE NEXT SEVERAL SLIDES HERE WE'RE GOING TO BE HAVING, YOU'RE GOING TO BE GETTING SOME CONCEPTS.

SOME STAFF DID A LITTLE MORE HOMEWORK, BUT OVERALL I TASKED STAFF, DON'T FIGURE OUT THE EXACT RECOUP AMOUNT OF MONEY. BECAUSE, AGAIN, THAT'S TO COME. LET'S GIVE ME SOME CONCEPTS HERE. LET'S DO SOME PROS AND CONS. DO A LITTLE BIT OF ANALYSIS. THEN ONCE I GET INTEREST FROM THE COUNCIL, THEN WE'LL GO TO WORK DOING THOSE THINGS.

THE SCOPE HERE, GENERAL FUND.

SO I DID NOT LOOK, I DID ASK EVERY DEPARTMENT TO LOOK AT THEIR BUDGETS, BUT THE FOCUS TODAY IS GENERAL FUNDS, PROPERTY TAX. THAT'S MY FOCUS TODAY. AND SO WHILE EVERY DEPARTMENT DID PARTICIPATE FOR SAKE OF TIME, I AM NOT GOING TO BE COVERING AIRPORT, COMMUNITY DEVELOPMENT, PUBLIC HEALTH, OR WIC. THOSE ONES, THEY HAVE THEIR OWN REVENUE STREAMS. LIKE AIRPORT, THEY'RE ALREADY COST RECOVERING. THE OTHER THREE, THEY HAVE FEDERAL FUNDS. WHILE A COUPLE OF THEM DO HAVE SOME GENERAL FUND ASSISTANCE, THERE IS RECENT COUNCIL DIRECTION BEHIND THOSE THAT I DIDN'T TACKLE TODAY. SO AGAIN, MY FOCUS TODAY IS GENERAL FUND ITEMS, GENERAL FUND DEPARTMENTS, PROPERTY TAX DEPARTMENTS, WHERE PROPERTY TAX IS MAKING THE DIFFERENCE, WHERE FEES ARE FALLING SHORT.

SO, GETTING INTO THE DEPARTMENTS. WE'RE GOING ALPHABETICAL. ANIMAL MANAGEMENT AND WELFARE. AS YOU LOOK AT THEIR BUDGET OVERALL, FULL COST RECOVERY IS NOT FEASIBLE. I THINK IT'S AROUND $4 MILLION EXPENSE, AROUND $100,000 TO $200,000 REVENUE. I CANNOT BRING TO YOU A REALISTIC OPTION TODAY TO MAKE UP $4 MILLION. AND YOU'RE GOING TO SEE THAT THROUGH A LOT OF THE DEPARTMENTS TODAY. SO, AGAIN, I ASKED THEM, OKAY, LOOK WITHIN YOUR BUDGET. WHAT ARE CERTAIN THINGS YOU'RE DOING THAT HAVE A REVENUE ASSOCIATED WITH IT, WHERE THE REVENUE IS NOT KEEPING PACE WITH THE EXPENSE? SO THEY'VE GOT SPECIFIC GRANULAR LIKE THAT. AGAIN, WHILE I MAY NOT BE ABLE TO MAKE UP ALL THE GROUND, WHAT ARE SOME THINGS THAT I CAN AT LEAST HAVE SMALL VICTORIES AND MAKE UP GROUND IN THOSE AREAS? THEY GIVE US FOUR OPTIONS HERE, GOOD OPTIONS. ONE IS OUR DAILY SHELTER CARE FEE. RIGHT NOW, IT'S COSTING US ABOUT $13 TO SHELTER AND CARE FOR AN ANIMAL. WE'RE CHARGING $5. WHICH MEANS TAXPAYERS ARE MAKING THE DIFFERENCE FOR THE OTHER 10. SO WITH THIS, WE'VE NOT RAISED OUR FEES IN OVER A DECADE, SO ONE OF THE OPTIONS WE HAVE HERE IS TO INCREASE OUR SHELTER CARE FEE FROM $5 TO $15 PER DAY IN ORDER TO REFLECT ACTUAL COSTS THAT WE'RE SEEING IN THE SHELTER FOR CARRYING THESE ANIMALS.

ADULT ANIMAL SURRENDER FEE, THE RECOMMENDATION HERE IS TO INCREASE FROM $25 TO $50.

AGAIN, VERY SIMILAR TO THE LAST ONE. OUR COSTS ARE EXCEEDING OUR ABILITY IN ORDER TO BRING IN THESE SURRENDERED ANIMALS.

SO WHEN A PERSON DROPS OFF AN ANIMAL, THERE SHOULD BE A HIGHER EXPENSE VERSUS THE TAXPAYERS MAKING THE DIFFERENCE FOR THAT. OPTION THREE, ADOPTION FEES. THIS IS ACTUALLY AN INTERESTING ONE. WE CURRENTLY HAVE AN ORDINANCE THAT SAYS $50 FOR CANINES AND $30 FOR FELINES, BUT BACK IN 2020, I'M GUESSING FOR COVID, I'M NOT SURE IF IT WAS COUNCIL OR STAFF, OR WHATEVER IT WAS, BOARD, WE DISCRETIONARILY

[01:40:01]

THIS IS ACTUALLY GOING BACK TO THE ORDINANCE VALUE. AND LAST ON, OPTION FOUR, REPEAT IMPOUNDMENT POLICY. SO WE DO HAVE, UNFORTUNATELY, SOME CITIZENS WHO DO NOT MANAGE THEIR ANIMAL AS WELL AS OTHERS DO, AND THEIR ANIMALS GET OUT REPEATEDLY. AND SO... PART OF THE THOUGHT HERE IS IN ORDER TO TRY TO INCENTIVIZE OR ENCOURAGE THEM TO TAKE A LITTLE MORE RESPONSIBILITY WITH THEIR PET, THE FEE DOUBLES. AND THEN YOU HAVE TO THEN SPAY AND NEUTER THE ANIMAL. BECAUSE, AS YOU ALL KNOW, A LOOSE ANIMAL IS POSSIBLY A PROCREATING ANIMAL, WHICH ADDS TO THE ISSUE THERE. SO THOSE ARE THE FOUR OPTIONS HERE. I WOULD RECOMMEND ALL FOUR OF THESE. IS WHAT I'D RECOMMEND. NOW, THERE'S SOME DEPARTMENTS THAT I WILL SAY THAT I RECOMMEND SOME, NOT ALL. THIS IS ONE AREA THAT I'D RECOMMEND ALL FOUR. SO WE CAN EITHER COME BACK TO THIS, OR, IF I GET NODS, AFFIRMATIVE, WE CAN DO THAT.

BUT OTHERWISE, IF THERE'S A WILLINGNESS WITH COUNCIL, I WOULD RECOMMEND ALL FOUR, AND I CAN SEND STAFF AND WORK ON THESE FOR THE BUDGET. ANY COMMENTS OR THOUGHTS FOR ANIMAL MANAGEMENT AND WELFARE? I DON'T THINK I'D HAVE ANY PROBLEM WITH ANY OF THESE, BUT. I THERE'S A COUPLE THAT I CAN SEE WHERE I'D PROBABLY LIKE TO GET A LITTLE BIT OF FEEDBACK FROM OUR ANIMAL WELFARE MANAGEMENT BOARD.

YEAH, JUST TO KIND OF RUN THIS BY THEM. YES, I LET ME APOLOGIZE, JEREMY. I SHOULD SAY ME FOR ALL THESE THINGS. MY GOAL WOULD BE THAT I WOULD, I WOULD HAVE TO MEAN. EVERY ONE OF THESE THINGS IS GOING TO INVOLVE CERTAIN LEVELS OF COMMUNICATION, INPUT, BOARD INPUT, EDUCATION OF THE PUBLIC. SO YEAH, THESE ARE NOT LIKE WE'RE GONNA START TOMORROW, THESE THINGS, I WOULD ASK STAFF TO, BETWEEN NOW AND OCTOBER 1ST, TO GET THE APPROPRIATE PROCESS PER THAT FEE STARTED, WHETHER IT'S A NOTICE OR WHATEVER'S REQUIRED FOR THAT. YES, WE WOULD BE DOING THAT. OKAY, YEAH.

BECAUSE A COUPLE OF THESE, AND AGAIN, I'M SURE EVERY ONE OF THESE, WE COULD HAVE EXCEPTIONS.

WE'RE GOING TO HAVE TO MAKE SOME TOUGH DECISIONS ON THIS. BUT ON THE MOUF OR MANAGEMENT BOARD, PEOPLE WOULD PROBABLY WONDER, WELL, ARE PEOPLE LESS LIKELY TO SURRENDER THEIR PET OR SURRENDER? IF THERE'S A COST TO IT, IF WE INCREASE THE COST? ADOPTION FEES, WOULD THAT MITIGATE ADOPTION? NOT SAYING THAT WE SHOULDN'T DO THESE, BUT I'D JUST LIKE TO KIND OF RUN THAT THROUGH AND KIND OF SEE WHAT THE FEEDBACK IS FROM THERE. AND THAT'S THE REALITY.

FOR EVERY FEE YOU LOOK AT, YOU'RE GOING TO HAVE PUSHBACK. SO, AGAIN, THIS WAS AN EXERCISE THAT COUNCIL REQUESTED. I THINK THE COUNCIL KNEW THAT EVERY FEE YOU INCREASE, YOU'RE GOING TO HAVE PUSHBACK. THERE'S ALWAYS A PRO AND A CON TO THAT.

BUT I THINK THE MENTALITY WAS, LOOK AT IT SIMPLY. WHAT IS NOT CASH FLOWING RIGHT NOW? AND LET'S LOOK AT THOSE. GRAYSON, I THINK THIS IS ABSOLUTELY WHERE WE NEED TO BE AS A CITY. I MEAN, IF IT'S $13 A DAY TO TAKE CARE OF THEM, WHY ARE WE ONLY CHARGING $5? THERE'S A LOT OF PEOPLE IN THE CITY THAT DON'T HAVE DOGS AND CATS. WHY ARE WE SUPPLEMENTING THAT FEE? IT NEEDS TO COVER THE COST. FANTASTIC JOB, AND I WOULD SUPPORT ALL OF THESE, BUT WITH A ROLLOUT WITH THE COMMITTEES AND DIFFERENT FOLKS.

BUT IF IT IS THIS COST, THEN WE NEED TO CHARGE IT.

ABSOLUTELY. HEY, GRAYSON, WHERE DID YOU COME UP WITH THESE FEES? I MEAN, I'M JUST CURIOUS, LIKE, OPTION TWO INCREASED FROM 25 TO 50. WHY DID WHAT YOU SAID? THESE ARE LOOKING AT PEER PRACTICES AS WELL. SO I KNOW WHEN VICTORIA, WHEN DIRECTOR MEDLEY WAS HERE, SHE GAVE ME KIND OF A TABLE OF OTHER CITIES AND SO FORTH. I THINK THIS IS ONE OF THEM, BUT SHE LOOKED AT OTHER CITIES AND LOOKED AT THEIR FEES. AND, AGAIN, SHE LOOKED AT, THEY DID SOME, AGAIN, I DIDN'T ASK STAFF TO ACTUALLY SIT DOWN, OKAY, FIGURE OUT. WELL, SALLY CHARGES $13 AN HOUR, BUT THEY GAVE THE BEST OVERALL GUESS. AGAIN, DIRECTORS, THEY UNDERSTAND THEIR BUDGETS.

AND SO THESE FEES WERE BASED OFF OF THAT IN-HOUSE KNOWLEDGE OF WHAT'S IT COST TO ME, WHAT'S THE PEER PRACTICE, AND SO FORTH. BUT, AGAIN, IF YOU WANT TO DO A DIFFERENT FEE, AGAIN, THE RECOMMENDATION IS THIS, BUT IF THE COUNCIL WANTS TO SAY, YOU KNOW WHAT, $30.

INSTEAD, AGAIN, WE HAD TO JUST GIVE YOU SOMETHING.

SURE. OKAY. AND THEN THE DAILY SHELTER CARE FEE, I GUESS THAT WAS BASED ON.

SOME TYPE OF COST. YEAH, THAT WAS AN EASIER ONE FOR THEM TO CALCULATE, YES. OKAY, THANK YOU. I'M GOOD WITH THESE FEES.

I THINK AS WE LOOK ACROSS THE CITY, BECAUSE YOU'RE GOING TO GO THROUGH EACH OF THESE AREAS, AT THIS POINT, THOSE WHO ARE, WHETHER IT'S GOLF, TENNIS, THE SWIMMING POOLS, WHATEVER, THOSE ARE THE PEOPLE THAT ARE USING THOSE FACILITIES.

CORRECT. I KNOW I PLAYED GOLF, I PLAYED TENNIS, I NEVER LOOKED AT THE FEE THAT I WAS PAYING BECAUSE I WANTED TO GO PLAY. AND IT WAS STILL CHEAPER THAN GOING TO JOIN A PRIVATE CLUB. SO THE CITY STILL IS OFFERING THAT QUALITY OF LIFE SERVICE.

BUT I THINK THESE FEES ARE IN LINE. AND I DON'T THINK THEY'RE JUST NUMBERS THAT HAVE BEEN THROWN TOGETHER.

TO APPEASE US, BUT I THINK THAT

[01:45:01]

AND THAT WAY WE HAVE MORE TIME TO THINK ABOUT THIS. AGAIN, AS PART OF THE RESOLUTION, THERE'S GOING TO BE A ROLLOUT PROCESS, A STUDY PROCESS, AND SO THAT WAY THERE'S SOME ACTION TIED TO THIS. AND YOU HAVE SOME MORE TIME TO THINK ABOUT THIS AS WELL. SO WITH THIS, I WILL MOVE ON TO THE NEXT ONE. I WILL PLAN TO TENDERLY MOVE ALL FOUR OPTIONS FORWARD TO THAT RESOLUTION.

AND, GRAYSON, I GUESS WHEN THAT RESOLUTION COMES OUT, I GUESS IT'S MAYBE A NO-BRAINER, BUT I GUESS YOU WILL SHOW US FROM PREVIOUS NUMBERS THE DOLLAR AMOUNT OF IMPACT THAT THAT WOULD HAVE TO THE BUDGET. WE DON'T NEED TO NOW, BUT WHEN THAT RESOLUTION COMES FORWARD, JUST BASING IT ON PREVIOUS NUMBERS. WHAT I WOULD SAY... LOGISTICALLY, I WOULD LIKE TO BRING THE RESOLUTION TO YOU, LIKE THE NEXT MEETING OR SO. I WON'T HAVE THE NUMBERS THEN, BUT THEN I WOULD. THEN, AS PART OF THE BUDGET PROCESS, WE WOULD THEN BRING THEM BACK TO YOU. BECAUSE, AGAIN, YOU'RE NOT LOCKED IN AT THE RESOLUTION THERE. YOU COULD ALWAYS IN THE BUDGET SAY, YOU KNOW WHAT, GRAYSON, NOW THAT I'VE SEEN THE NUMBER ON THE ADULT ANIMAL SURRENDER FEE, IT'S JUST NOT WORTH IT. AND SO WE'RE GOING TO HAVE TOO MUCH PUSHBACK.

IT'S JUST NOT WORTH IT KIND OF THING. SCRATCH IT FROM THE BUDGET, KIND OF A THING. SO I WOULD PREFER TO, AS ONE UNIFIED PROCESS, BRING BACK TO YOU. THE NUMBERS DURING THE BUDGET PROCESS ITSELF. THAT'S FINE. I JUST THINK THE NUMBERS ARE IMPORTANT. YES, ABSOLUTELY.

ALL RIGHT. CITY MARSHAL.

AGAIN, FULL COLLEGE RECOVERY IS NOT FEASIBLE. SO THEIR FOCUS WAS ON THE ABATEMENT FEE, THE ABATEMENT WORK THEY DO. AS YOU KNOW, CITY MARSHAL, THEY GO OUT THERE, THEY LOOK AT NUISANCES, FROM TALL GRASS TO DANGEROUS STRUCTURES TO THOSE KIND OF THINGS. THERE IS AN ADMINISTRATIVE FEE TO THAT. WE DO HAVE, BY LAW, WE HAVE TO REQUIRE TO DO CERTIFIED MALES. THERE'S DATA ENTRY. THERE'S CONTRACTOR COORDINATION. THERE'S CONTRACTOR EXPENSES. THERE'S LIEN PREPARATION. AND ON THE OCCASION, WE HAVE TO ISSUE WARRANTS. AND SO THERE ARE LEGITIMATE COSTS TIED TO DOING ABATEMENT. RIGHT NOW, THE TAXPAYERS ARE HAVING TO MAKE THAT UP FOR THOSE WHO ARE HAVING TO BE ABATED. AND SO WITH THIS, JACOB AND HIS TEAM, THEY LOOKED AT. WE HAVE NOT RAISED OUR FEE SINCE MARCH 2012. SO THE $75 ADMINISTRATIVE FEE HAS NOT CHANGED IN OVER, WHAT, 13 OR SO YEARS, 14 YEARS NOW. SO WITH THIS, LOOKING AT PEER CITIES, THEY RANGE FROM 125 TO 250 ADMINISTRATIVE FEE. THE RECOMMENDATION HERE FROM STAFF IS TO GO FROM 75 TO 125 IN FISCAL YEAR 26-27, AND THEN TO 115, 27, 28, A FAVES APPROACH THERE. AGAIN, YOU'RE NOT ON THE HIGH END, BUT YOU'RE DOING MORE TO COVER THE COST. SO THAT THOSE WHO ARE HAVING TO BE ABATED ARE COVERING THEIR COSTS, AND NOT THOSE WHO ARE ACTUALLY DOING A GOOD JOB OF MAINTAINING THEIR PROPERTY.

SO. AND I WOULD RECOMMEND THAT APPROACH. AND HE ALSO RECOMMENDED AN AUTOMATIC 3% INCREASE IN OUR ORDINANCE. WE HAVE A FEW OTHER PERMITS, LIKE BUILDING SAFETY. AS COSTS DO GO UP, WE WENT AHEAD AND PUT IN PLACE AN AUTOMATIC ADJUSTMENT. THAT WAY WE DON'T HAVE TO COME BACK EVERY YEAR AND COUNCIL HAS TO WAIT EVERY YEAR. WE HAVE A NATURAL INFLATION BUILT INTO THE ORDINANCE THERE. SO MY RECOMMENDATION WOULD BE THE PHASED APPROACH, 75 TO 125 NEXT YEAR TO 150 THE FOLLOWING YEAR, WITH A 3% AUTOMATIC ANNUAL ADJUSTMENT THEREAFTER. ANY CONCERNS WITH THAT? ALL RIGHT.

NOW, CIVIC CENTER, THIS IS A BIT OF EXCEPTION HERE. I PUT IT IN HERE BECAUSE I KNOW I'VE HAD SOME CONVERSATION WITH SOME COUNCIL MEMBERS ABOUT THIS TOPIC. I KNOW COUNCIL WOULD AT SOME POINT LIKE TO DISCUSS COST RECOVERY HERE.

SO, AGAIN, ALL DEPARTMENTS DID THIS EXERCISE. THIS IS NOT A GENERAL FUND DEPARTMENT. THIS IS FUNDED THROUGH THEIR OWN REVENUES AND THROUGH HOT AND OTHER FUNDS LIKE THAT. STAFF DO REVIEW FEES AND SO FORTH. BUT, COUNCIL, MY REQUEST, GIVEN IT IS 1113 TODAY, MY REQUEST, I KNOW THIS IS A CHALLENGING, COMPLICATED TOPIC TO DISCUSS.

THERE'S BEEN A LOT OF POLITICAL DISCUSSION, A LOT OF OTHER DISCUSSION WITH THIS ONE HERE. IF THE COUNCIL WOULD WISH TO DISCUSS COST RECOVERY, I WOULD RECOMMEND WE NOT DO THAT TODAY, BUT WE WOULD SET THAT ASIDE AS ITS OWN STANDALONE TOPIC.

ENVIRONMENTAL HEALTH. THERE ARE TWO SLIDES HERE. SO THERE ARE A NUMBER OF OPTIONS HERE THAT ENVIRONMENTAL HEALTH HAS COME UP WITH. THIS IS ACTUALLY A DEPARTMENT WHERE I FEEL THAT COST RECOVERY AS A DEPARTMENT MAY BE ACHIEVABLE IN THE NEAR FUTURE. AND SO THEY CURRENTLY HAVE A $2.3 MILLION BUDGET. THEY ARE AT $1.8 MILLION REVENUE. IT'S A $500,000 SUBSIDY FROM GENERAL FUND. AND SO THEY'VE IDENTIFIED

[01:50:01]

AGAIN, THIS IS AN OPTION THE COUNCIL CAN CONSIDER. IT'S NOT ONE THAT I'M RECOMMENDING TODAY. AND SO, BUT IF YOU SO WISH, YOU COULD FUND THE VECTOR FEE THROUGH A FEE ON THE UTILITY BILL. AGAIN, BASED OFF COUNCIL DISCUSSION BEFORE, I AM NOT RECOMMENDING THIS ONE TODAY UNLESS COUNCIL SAYS OTHERWISE. OPTION THREE, TATTOO AND BODY PIERCING INSPECTION PROGRAM. ONE OF THE NEHA CORE PROGRAMS IS TO DO INSPECTION SERVICES FOR TATTOO AND BODY PIERCING.

WE HAVE STAFF FIELDS THAT THEY CAN TAKE THIS ON WITHOUT ADDITIONAL STAFFING.

TO DO THIS PROGRAM HERE, SO THERE'S REVENUE THAT COULD BE HAD FROM THIS ONE HERE. I'M ACTUALLY NOT RECOMMENDING THIS ONE TODAY. AND SO, I APPRECIATE STAFF WILLINGNESS TO PURSUE MORE REVENUE STREAMS, BUT I'M ALWAYS A LITTLE CAUTIOUS ABOUT ADDING MORE WORK WITHOUT ADDING ADDITIONAL STAFF. AND SO THAT'S ONE THAT I WOULD HAVE SOME CAUTION WITH. NEXT SLIDE, THREE MORE OPTIONS.

RECREATIONAL WATER PROGRAM FOR POOLS AND SPAS. IT IS CURRENTLY RECOVERING 50% OF ITS COST TO DO THIS PROGRAM. SO, THE RECOMMENDATION HERE IS TO DOUBLE THE PERMIT FEE FROM $500 TO $1,000 SO THAT THE TAXPAYERS ARE NOT MAKING UP THE DIFFERENCE.

FOR INSPECTION SERVICES ON POOLS AND SPA SERVICES.

THERE IS AN OPTION FOR PHASING IF COUNCIL SO WISHED. I WOULD BE RECOMMENDING THE FULL COST RECOVERY ROUTE AT THIS TIME.

OPTION FIVE IS A GROUP DAYCARE PROGRAM. IT IS ONLY RECOVERING 34% OF ITS COSTS. THIS IS ONE, LIKE I SAID BEFORE, THAT LEGISLATION HAS STEPPED IN TO KIND OF PUT SOME CAUTION TOWARDS US. I WOULD NOT RECOMMEND FULL COST RECOVERY IN THIS PROGRAM HERE, BASED OFF LEGISLATIVE ACTION THAT'S BEEN TAKING PLACE IN AUSTIN. BUT I WOULD MAYBE PERHAPS A MODEST FEE INCREASE, MAYBE 10% TO 15%. AGAIN, JUST TRYING TO, IN GOOD FAITH, RECOUP SOME OF THE COSTS THAT IT TAKES TO PROVIDE THE SERVICE. AND LASTLY, THIS IS ONE WE'VE ALREADY TAKEN ACTION ON WITH COUNCIL. THE PUBLIC HEALTH DISTRICT COST-SHARING, AS YOU KNOW, WE DO SERVICE RANDALL COUNTY, POTTER COUNTY, CITY OF CANYON, LAKE TANGLEWOOD, A FEW OTHER AREAS THERE, BUT CURRENTLY, THE CITY OF AMARILLO TAXPAYERS ARE PAYING ALL THE COST, NOT THE OTHER INDIVIDUALS. SO WITH THIS PROGRAM, ANTHONY AND CASEY AND THEIR TEAM HAVE DONE A GREAT JOB OF GOING TO THESE BOARDS. AND THEY HAVE AGREED TENTATIVELY TO COME TO COME TO TERMS WITH US. IN ORDER THAT THEY CAN PAY THEIR FAIR SHARE OF THE COST ON ON A PRO RATA BASIS, BASED OFF THEIR POPULATIONS WITH THAT. SO WITH THIS, LOOKING AT BOTH SLIDES, MY RECOMMENDATION WOULD BE OPTION ONE, WHICH IS AN EASY ONE, IT MAKES TOTAL SENSE.

OPTION FOUR, THE FULL COST RECOVERY. OPTION FIVE, A MODEST INCREASE. AND OPTION SIX, WE CONTINUE WITH THAT. BUT AT THIS POINT HERE, I AM NOT RECOMMENDING OPTION TWO OR THREE UNLESS COUNSEL DIRECTS OTHERWISE. SO, A COUPLE QUESTIONS ON, EH. CURRENTLY, TATTOOS NOT BEING INSPECTED.

TATTOO PARLOR. ANTHONY, IF YOU COULD, PLEASE COME FORWARD.

THIS WOULD BE AN ADDITIONAL PROGRAM THAT YOU GUYS WOULD BE RECOMMENDING? THAT'S CORRECT, MAYOR. IT'S CURRENTLY REGULATED BY THE TEXAS DEPARTMENT OF STATE HEALTH SERVICES, BUT THEY HAVE ONE INSPECTOR FROM DALLAS UP TO FAR NORTH AMARILLO. TATTOOED BODY PIERCING FACILITIES RARELY GET LOOKED AT. OKAY. A LOT OF LOCAL ENTITIES ARE HAVING THEIR OWN PROGRAM. TDLR AS WELL, RIGHT? I DON'T, MAYBE ON THE LICENSING SIDE, BUT NOT ON THE ACTUAL FACILITY SIDE.

OKAY. AND THEN DO YOU FEEL LIKE THIS IS PRETTY EXHAUSTIVE? YOU KNOW, LIKE, THIS IS A GOOD FIND IN HOW WE'RE UTILITY BILLING THOSE REVENUES, RIGHT? SO THE WAY YOU'RE TAKING THE OPTION ONE, I THINK, IS DEFINITELY IN LINE WITH BALANCING THE BUDGET.

BUT THEN DO YOU FEEL LIKE THIS IS PRETTY EXHAUSTIVE? YOU'VE LOOKED AT OTHER. AND THERE'S NO OTHER RECOMMENDATIONS OUT THERE AS IT PERTAINS TO, EH, AND THE WAY YOU GUYS BILL FOR YOUR SERVICES? WE'RE PRETTY LIMITED ON OUR FOOD AND HYGIENE PROGRAM. THAT'S 60%

[01:55:02]

ON THE RECREATIONAL WATER, IS THAT SOMETHING THAT'S MANDATED BY THE STATE? THE SWIMMING POOL AND SPA, IT IS A STATE LAW, YES. DOES THE STATE PROVIDE THAT SERVICE IN SOME FORM OR FASHION? THEY DON'T IN AREAS WITH LOCAL JURISDICTIONS. SO THEY ESSENTIALLY GIVE IT TO US. IF WE WERE TO GIVE IT AWAY BACK TO THE STATE, I'M NOT SURE IF THEY COULD PICK THAT UP.

AGAIN, THEY'RE VERY LIMITED IN STAFFING. DO YOU KNOW WHAT THE CURRENT EXPENSE IS ON THAT? ON THAT PROGRAM ENTIRELY? YES, SIR. I THINK YOU HAD IT SEPARATED OUT AT ONE TIME. I'M JUST CURIOUS.

AND THEN, IS THERE A POTENTIAL TO GO TO A RESPONSIVE PROTOCOL VERSUS A CALENDAR OR A PROACTIVE? SO YOU GUYS HAVE TO WORK THE ENTIRE LIST. SO NEW HOTEL COMES ONLINE. NEW RECREATION POOL, LET'S SAY, PUBLIC POOL, YOU GUYS ARE INSPECTING EVERYTHING. A LOT OF TIME EXPENSED FOR THAT. IS THERE A WAY TO MAKE THAT RESPONSIVE? SO YOU GUYS ALLOW FOR THE PUBLIC TO OPERATE WITH KIND OF GOOD BEHAVIOR, GOOD RESULTS, BUT AT THE POINT WHERE THERE'S A COMPLAINT OR AN INCIDENT, THEN IT BECOMES SOMETHING THAT YOU GUYS WOULD OVERSEE, AND WOULD THE STATE ALLOW THAT? I THINK ANYTHING'S POSSIBLE, BUT NOT ONE I WOULD ESSENTIALLY RECOMMEND. THAT PROGRAM HAS A LOT OF ENFORCEMENT ACTION THAT IT'S TAKEN IN THERE. WE OFTEN SEE WATER CHEMISTRY OUT OF BALANCE, ELECTRICAL HAZARDS, DROWNING HAZARDS. PULL PERMITS TYPICALLY GET SUSPENDED QUITE OFTEN. I THINK IF WE GO TO A RESPONSIVE POSITION, WE WOULD RESPOND ALL THE TIME.

WE WOULD ESSENTIALLY BE RUNNING A PROGRAM. AND YOU SEE THOSE, EVEN THOUGH THOSE ARE GOING THROUGH BUILDING SAFETY AND INSPECTIONS? ALL THE TIME.

OKAY. DO YOU HAVE SOME DATA, BECAUSE I THINK IT WOULD HELP FOR US TO BE ABLE TO ADDRESS THIS IN THE FUTURE. DO YOU HAVE SOME DATA ON INCIDENTS OR, YOU KNOW, LIKE, SO YOU HAVE A... I DON'T EVEN KNOW IF IT WOULD BE JUST A CHLORINE BURN OR WHATEVER.

WHERE THERE HAVE BEEN, BECAUSE I THINK THE FEEDBACK THAT I GET PROBABLY FROM MORE OF THE HOTELIERS AND SOME OF THOSE POOL OPERATORS IS THAT THEY'RE BEING REGULATED.

THEY'VE NEVER HAD AN INCIDENT.

WE REALLY DON'T NEED THIS LEVEL OF LOCAL REGULATION. THEY'RE ALREADY BEING REGULATED ENOUGH AS IT PERTAINS TO THEIR OTHER BUSINESS.

WELL, WE COULD PROBABLY COME UP WITH SOME SORT OF DATA. WE HAVE... VIOLATION DATA THAT I COULD PULL FAIRLY EASY TO SHOW THE NUMBER OF TIMES THE FACILITY HAS BEEN MARKED FOR A CERTAIN NUMBER OF VIOLATIONS. I THINK THAT WOULD BE HELPFUL, ESPECIALLY IF WE'RE LOOKING AT INCREASING THE BUDGET OR THE FEE TO PERFORM THAT REGULATION. WE NEED TO BE ABLE TO SHOW THE PUBLIC. SAFETY ASPECT, FOR SURE. I WILL ALSO TELL YOU THIS DUE TO STATE LAW CHANGES. SO A LOT OF HOTELS SERVE FOOD AS WELL, AND THEIR FOOD COSTS USED TO BE ONE OF THE HIGHER ONES.

BECAUSE IT WAS BASED UPON THE SIZE OF THE FACILITY DUE TO STATE LAW CHANGES, THAT HAS GONE DOWN TREMENDOUSLY. SO THEY THEY WILL SEE QUITE A BIT OF SAVINGS ON THE FOOD SIDE.

SO IF YOU INCREASE IT ON THE RECREATIONAL WATER SIDE, THEY WILL STILL BE A NET SAVINGS TO A FACILITY. OKAY.

DOES ANY OTHER MUNICIPALITY OPERATE WITHOUT BREAKING OUT THEIR REVENUES LIKE THIS? ARE THEY EVER...SOMEWHAT ENCAPSULATED AND GROUPED TOGETHER, AND THEN BILLED ACCORDINGLY IN A PERCENTAGE? OH, FOR A HOTEL? WELL, YOU DO A REALLY GOOD JOB OF BREAKING OUT FEE STRUCTURES FOR EACH INDEPENDENT THING YOU'RE LOOKING AT AND THEN BILLING THOSE. YOU DON'T HAVE ANY GLOBAL FEE, SO TO SPEAK, THAT YOU COULD PAY FOR AS AN ENTITY, WHERE IT WOULD JUST BE SIMPLER. I WOULD SAY ALL MY COLLEAGUES ACROSS THE STATE, IT'S ALL ENVIRONMENTAL HEALTH PROGRAMS ARE RAN THIS WAY. OKAY. PER PROGRAM. THANK YOU FOR LETTING ME DEVIATE ON THAT. APPRECIATE IT. QUICK QUESTION ON THE GREASE TRAP.

SO HOW DOES THAT, TELL ME THE BENEFIT, SO WE'RE NOT GENERATING ANY MORE. REVENUE OUT OF THIS? WE'RE JUST SHIFTING IT. WHAT'S THE ADVANTAGE OF DOING THAT? WELL, THEY GOT. NOW THE REVENUE IS GOING TO THE UTILITIES, BUT NOT THE GENERAL FUNDS.

THIS WOULD BE A NEW REVENUE STREAM IN THE GENERAL FUND.

OKAY, BUT IT'S, BUT IT'S NOT, IT'S NOT NETTING US. AS A TOTAL ORGANIZATION, TODAY'S FOCUS IS GENERAL FUND PROPERTY TAX BASE.

AND SO THAT TODAY'S EXERCISES ON THAT. SO, YEAH, IT WOULD BE A DEDUCT FROM UTILITIES, BUT AGAIN, THE FOCUS TODAY IS ABOUT TRYING TO ADDRESS THE PROPERTY TAX SUBSIDY. YEAH, AND

[02:00:02]

THANK YOU. THAT'S HOW IT'S EXPLAINED TO ME. SO WITH THIS, I'M SORRY, I STEPPED OUT FOR A MINUTE THERE. MY RECOMMENDATIONS WERE OPTIONS ONE. FOUR, A MODEST FIVE, AND SIX. AND THEN WAS THERE SOME DIRECTION, POSSIBLY ON THREE? MAYBE SOME MORE INFORMATION COMING BACK, OR DID THAT NOT GO ANYWHERE? I'M SORRY. NO, I THINK I'M GOOD ON THREE. I THINK YOU'RE NOT RECOMMENDING IT, SO WE JUST MOVE FORWARD. I ASKED FOR A LITTLE ADDITIONAL INFORMATION AS IT RELATES TO RECREATIONAL WATERS. VERY GOOD. SO ONE, FOUR, FIVE, AND SIX, WE'LL BRING BACK TO YOU ALL FOR A RESOLUTION.

WHY NOT? GRAYSON, WHY NOT TWO? YES. WHY NOT OPTION TWO? WELL, I'M MOSTLY JUST TAKING MY GUIDANCE BASED OFF THE LAST BUDGET WORKSHOP AND THE CONCERN COUNCIL HAD WITH PUTTING THINGS ON THE UTILITY BILL. IF I COULD SPEAK TO THAT REAL QUICK, I THINK JUST COLLEAGUE TO COLLEAGUE, I WANT TO CONTINUE TO STRESS THAT THE UTILITY BILL, THE WATER BILL, IS A DANGEROUS SLIPPERY SLOPE TO START PUTTING FEES ON. SO AS A... REGULATORY BODY, RIGHT, WE ADMINISTER ALL SORTS OF CORE SERVICES THAT ARE REGULATED BY THE STATE, SO WE CAN ONLY RAISE TAX THIS MUCH. WHEN WE PUT A FEE ON A UTILITY BILL, IT'S TOTALLY UNREGULATED, MEANING WE CAN SAY IT'S 50 CENTS YEAR ONE, BUT WE COULD TURN AROUND YEAR TWO AND RAISE IT TO $5. NOW, I'M NOT SAYING WE WOULD EVER DO THAT, BUT...

THAT IS WHAT THE APPEARANCE LOOKS LIKE, I'D SAY, TO OUR CONSTITUENTS IN GENERAL. AND SO, LIKE, THE STREET FEE WAS THE ONE WE WERE REALLY LOOKING AT. THE MOSQUITO OR THE VECTOR CONTROL IS PRETTY SMALL, AND I DO SEE A LOT OF BENEFIT IN THE VECTOR CONTROL AND HAVING THAT MAINTAINED. BUT I'M JUST LEERY UNTIL YOU GET TO YOUR LAST RESORT, WHERE THIS IS WHAT IT'S GOING TO TAKE TO RUN THE CITY. I HATE TO ALLOW FOR THE THOUGHT PROCESS THAT WE WOULD GO BACK TO A UTILITY FEE AND JUST PUT AN EXTRA FEE ON YOUR WATER BILL. AND IT REALLY IS SOMETHING THAT IS AN EASY TARGET FOR TAXPAYERS TO SHOOT AT, MYSELF INCLUDED. I WANT TO SEE ACCOUNTABILITY IN FINANCES. I WANT TO KNOW YOU DID EVERYTHING YOU COULD AND YOU RAN YOUR BUDGET SUPER TIGHT BEFORE YOU EVER. JUST FIND THE SOLUTION, WHICH IS, WELL, IF I CAN'T RAISE YOUR TAXES, I'LL JUST PUT A BILL. YOU KNOW, A FEE ON YOUR WATER BILL. AND THEN THERE IS THAT SINGLE MOM OF THREE OUT THERE. WHERE, YOU KNOW, AN EXTRA $10, $15 A MONTH BILL IS, I MEAN, THAT'S LUNCH FOR, YOU KNOW, ONE OF THOSE KIDS GOING TO SCHOOL. SO THAT'S WHERE WE'VE BEEN. DO WE WANT TO REDIRECT, OR ARE WE OKAY TO LOOK AT THAT AS THE VERY LAST OPTION? AND THE VECTOR PROGRAM COULD BE ONE THAT COUNCIL COULD CONSIDER DROPPING ENTIRELY ALTOGETHER. SO I'M NOT SURE WHAT THE REGULATIONS ARE WITH THAT, BUT IF YOU'RE LOOKING AT WAYS IN ORDER TO SAVE COST, YOU COULD SAY THAT COULD BE AN EASY ONE. $313,000 THAT THE CITY COULD NOT SPEND RIGHT THERE.

THIS WOULD BE ONE OF THOSE, LIKE THE LAST BROUGHT UP, IT'S NOT ONE OF THE CORE FUNCTIONS. SO THIS IS ONE THAT IS DROPPABLE. I MEAN... YOU THINK KEEPING PEOPLE SAFE FROM MOSQUITOES IS NOT A CORE FUNCTION? I'M SORRY, THAT WAS LES SIMPSON. NO, I DIDN'T SAY THAT. NOT DOG TIPS.

BUT AGAIN, I'M NOT SAYING WE SHOULD. I'M JUST SAYING THAT COULD BE AN EXAMPLE OF ONE YOU COULD DO. SO MOVING ALONG FOR FIRE, AGAIN, FULL COST RECOVERY IS NOT FEASIBLE, GIVEN THE NATURE OF WHAT THEY DO. SO LOOKING AT SOME TARGETED IDEAS, SO THE CHIEF AND HIS TEAM GAVE ME FOUR OPTIONS FOR THIS ONE HERE FOR YOU ALL TO CONSIDER. AN UPDATE TO THE FIRE MARSHAL'S INSPECTION AND PLAN REVIEW FEES. AGAIN, INTRODUCING A TIERED OR RISK-BASED CHARGES BASED OFF OF HIGHER RISK. AND SO, IF YOU HAVE A MORE HIGHER RISK OCCUPANCY, THEY SHOULD PROBABLY PAY MORE THAN THOSE WHO HAVE LOWER RISK. AND THEN ADD RE-INSPECTION FEES FOR THOSE WHO ARE CONTINUALLY HAVING TROUBLE GETTING THEM PASSED.

AND SO INSTEAD OF THE TAXPAYERS HAVING TO PAY TO SEND AN INSPECTOR BACK OVER AND OVER AGAIN, THE PERSON WHO IS NOT GETTING IT RIGHT WILL PAY THOSE FEES. OPTION TWO, THIRD-PARTY INSURANCE BILLING.

SO FOR, AND THIS IS FOR, I WANT TO STRESS EXTRAORDINARY COST.

THERE ARE SITUATIONS WE COME ACROSS THAT REQUIRE A CERTAIN LEVEL OF RESPONSE ABOVE NORMAL FOR FIRE AND FOR FIRE SERVICE. AND SO THERE ARE, WHETHER IT'S HAZMAT, WHETHER IT'S AN INSURED LOSS, AUTO COLLISION, THERE ARE CERTAIN THINGS THAT ARE A BIT BEYOND NORMAL. AND SO THE THOUGHT HERE WOULD BE TO PURSUE INSURANCE COMPANIES.

OR THE RESPONSIBLE PARTY TO HELP PAY THOSE COSTS. AND AGAIN, THIS WOULD BE AVOIDING BILLING ROUTINE CALLS. I KNOW WE'RE NOT GOING TO SEND A BILL

[02:05:02]

BUT THERE COMES A POINT OF RESPONSIBILITY AND ACCOUNTABILITY. IF YOUR SYSTEM CONTINUES TO GIVE FALSE ALARMS OVER AND OVER AGAIN, IT SHOULDN'T BE THE TAXPAYER'S RESPONSIBILITY TO COME EVERY TIME BECAUSE YOU WON'T FIX YOUR SYSTEM. AND SO THE ENCOURAGEMENT HERE IS TO ADD FEES SO THAT IT ENCOURAGES THOSE. IF YOU'RE NOT GOING TO FIX YOUR SYSTEM, THEN YOU'RE GOING TO PAY MORE EVERY TIME WE HAVE TO SHOW UP. FALSE ALARM. EVERY TIME THAT SQUIRREL RUNS ACROSS THERE, I'M SORRY, THE MILLION-DOLLAR FIRE TRUCK SHOULDN'T SHOW UP EVERY TIME.

OPTION FOUR, SPECIAL EVENT STANDBY CHARGES, FULL COST RECOVERY FOR OPTIONAL STANDBYS AT PRIVATE EVENTS OR HIGH-RISK OPERATIONS. SO THERE ARE TIMES WE ARE REQUESTED TO DO STANDBY SERVICES, AND IT SHOULDN'T NECESSARILY BE FREE.

AND SO IF WE ARE GOING TO PROVIDE STANDBY SERVICES, IT WOULD BE REASONABLE FOR THAT ENTITY, THAT PROGRAM, TO MAYBE COVER SOME OF THE COST.

TO HAVE A UNIT STANDING THERE FOR THAT. I DID THAT IN MY LAST COMMUNITY. WE HAD STANDBY SERVICE FOR AMBULANCES AND FIRE TRUCKS AND POLICE, AND SO WE DID THAT. THE TAXPAYERS SHOULDN'T NECESSARILY BE SUBSIDIZING A PRIVATE EVENT, SECURITY AND SO FORTH.

WITH THIS, AGAIN, AS THE COUNTRY'S CITIZEN ADDRESS, SOME OF THESE WOULD REQUIRE SOME CAREFUL...

EXPLANATION, EDUCATION, AND SO FORTH. AGAIN, WE'RE NOT JUST GOING TO THROW THE FEE OUT THERE AND LET IT SWIM.

WE'RE LOOKING AT A LOT OF EXPLANATION HERE, BUT I WOULD RECOMMEND ALL FOUR OPTIONS IN THIS SITUATION HERE.

I WOULD JUST LIKE TO SPEAK TO THE THIRD-PARTY INSURANCE BILLING. WE'VE BEEN INVOLVED IN SEVERAL INSTANCES WHERE THIS OCCURS, AND THAT CAN GET INTO $5, $6, $7 MILLION ON A BIG HAZMAT ISSUE.

FOR US NOT TO BE ABLE TO RECOVER THAT, THAT WOULD BE VERY DETRIMENTAL.

YES. AND I'M GUESSING THIRD-PARTY BILLING, THAT'S NOT SOMETHING WE'RE GOING TO PUT IN THE BUDGET.

THIRD-PARTY? I MEAN. I MEAN, WE DON'T KNOW WHETHER IT'S GOING TO HAPPEN OR NOT. THERE ARE POTENTIAL SERVICE PROVIDERS THAT WILL JUST TAKE A PERCENTAGE TO ACTUALLY DO THE BILLING FOR IT, VERSUS US HAVING TO HIRE STAFF AND BILL INSURANCE AGENCIES. SO THERE'S SOME OPTIONS OUT THERE.

BUT ARE YOU SAYING, LIKE, PUT A REVENUE FIGURE IN THE BUDGET FOR THAT? BECAUSE OF THE UNKNOWNNESS TO THAT? CORRECT. YEAH, YEAH.

WE COULD DO SOME REASONABLE HISTORICAL ANALYSIS TO SEE WHAT IT WOULD HAVE BEEN HAD WE HAD THIS IN THE PAST, AND MAYBE PUT A FIGURE TO THAT.

BUT THIS IS ONE WHERE IT MAY BE BEST TO LEAVE IT LOW AND SEE HOW HISTORY GOING FORWARD GIVES US ON THAT. AND IT MAY TAKE US MORE TIME THAN WE HAVE TO ACTUALLY GET THIS THING BUILT OUT AND FIGURED OUT AS WELL. THANK YOU. ALL RIGHT. INTERNAL AUDIT, AND THIS IS MORE OF AN FYI FOR THE COUNCIL, THIS DEPARTMENT DOES NOT PRODUCE REVENUE. IT IS STRICTLY A COST DEPARTMENT, BUT THEY HAVE BEEN BUSY TRYING TO FIND WAYS, AS COUNCILOR SIMPSON ADDRESSED, TO TRY TO FIND WAYS TO CUT COSTS. AND SO ONE THING THEY IMPLEMENTED ALREADY THIS YEAR, JUST FOR YOUR AWARENESS, IS. WE WERE PAYING FOR A THIRD-PARTY SERVICE TO DO HOT AUDITS, BUT WE HAVE TAKEN THAT OVER, AND WE'RE SAVING ABOUT $100,000 A YEAR TO DO THAT OURSELVES. AND SO...

AND NEIL GERBER AND HIS TEAM ARE DOING A GREAT JOB OF NOW WORKING WITH HOTELS.

AND FROM WHAT I'VE SEEN, BASED ON THE INFORMATION THAT'S BEEN GIVEN TO ME, OUR STAFF IS A BIT MORE FRIENDLIER THAN I THINK THE THIRD PARTIES WERE. SO THE HOTELIERS HAVE MORE ENJOYED WORKING WITH OUR STAFF.

WITH OUR STAFF, THEY SHOW UP, THEY GO ON SITE, THEY WORK AT ARRANGEMENTS AND SO FORTH.

THIS HAS BEEN A GOOD THING FOR US. SO THIS IS AN ALREADY IMPLEMENTED COST SAVINGS FOR THE CITY, JUST FOR YOUR AWARENESS. IT, AGAIN, THIS IS NOT A REVENUE-GENERATING DEPARTMENT, BUT THIS IS A CRITICAL COMPONENT OF OUR CITY. AND SO THERE ARE A FEW THINGS THEY'RE GOING TO BE DOING. AGAIN, THEY DO NOT PROVIDE FRONTLINE SERVICE TO THE CITIZENS. THEY ARE PURELY INWARD-FACING. THEY PROVIDE THE BACKBONE FOR ALL THE DEPARTMENTS TO OPERATE. WITH THIS, THEY'RE LOOKING AT TWO THINGS TO HELP KIND OF ADJUST HOW MONEY IS BEING ALLOCATED IN THE BUDGET. FIRST ONE IS IT IS LOOKING AT REEXAMINING THEIR FEE MODEL.

SO IT BUILDS DEPARTMENTS BASED OFF OF THEIR USAGE, BASED OFF OF THEIR HARDWARE, SOFTWARE, THE DEMAND, AND SO FORTH, LOOKING AT GENERAL FUND, UTILITY FUND, DRAINAGE FUND, SO THEY WANT TO MAKE SURE THAT'S PROPERLY ALIGNED, SO THAT NON-GENERAL FUND DEPARTMENTS ARE PAYING APPROPRIATE SHARE OF THE COST FOR IT, NOT BEING... HEAVILY BURDENED IN THE GENERAL FUNDS. THEY'RE WORKING ON THAT. THAT'S CURRENTLY IN WORKS FOR THEM.

[02:10:01]

ARE GOING TO BE REEVALUATING WHAT WE'RE BILLING THESE ENTITIES, THESE OTHER GOVERNMENT ENTITIES, TO MAKE SURE THAT THEY'RE COVERING THEIR PRO RATA SHARE OF THE COST. SO AGAIN, IT IS WORKING ON IDEAS TO HELP MAKE SURE THAT APPROPRIATE REVENUE FROM OTHER BUSINESSES ARE COMING IN FOR THAT RADIO PROGRAM. AS WELL AS WE'RE MAKING SURE THAT THE GENERAL FUND IS BEING BILLED FAIRLY VERSUS OTHER DEPARTMENTS. SO NO ACTION, I WOULD SAY, FOR COUNCIL. THIS IS ONE THAT I THINK AS MANAGER, I'VE ALREADY TASKED STAFF WITH DOING, BECAUSE IT JUST MAKES SENSE.

LIBRARY, AGAIN, FULL COST RECOVERY IS NOT FEASIBLE. SO, AGAIN, LOOKING AT TARGETED ADJUSTMENTS TO IMPROVE FAIRNESS AND COST RECOVERY, WHILE, AGAIN, PRESERVING ACCESS TO INDIVIDUALS. AND SO LIBRARY IS ONE OF THOSE QUALITY OF LIFE PROGRAMS THAT IS THERE FOR ALL INDIVIDUALS, OF ALL CAPABILITIES AND ALL ECONOMIC STATUSES. AND SO THAT IS ONE OF THE CHARTERS OF LIBRARIES ACROSS THE NATION. IT'S BEING OPEN AND AVAILABLE FOR ALL INDIVIDUALS, NO MATTER HOW MUCH MONEY YOU MAKE EVERY YEAR. SO WITH THIS, THEY DID IDENTIFY THREE THAT I BROUGHT FORWARD TO YOU. THEY IDENTIFIED A FEW OTHERS THAT THEY BROUGHT TO ME THAT I THINK I HAD IN MY REPORT THAT WERE A BIT MORE CHALLENGING. SO I BROUGHT THESE THREE TO YOU TODAY, AND I DO RECOMMEND ALL THREE HERE.

FIRST ONE IS, WHENEVER WE HAVE MATERIAL THAT'S DAMAGED, WE DO ASK THE PERSON TO PAY FOR THAT. IF YOU BORROWED A BOOK AND YOU DESTROYED THE BOOK, YOU SHOULD PAY FOR THAT BOOK. WHEN YOU HAVE A MORE NEWER BOOK, WE KIND OF KNOW WHAT THE VALUE OF THE BOOK IS.

BUT WE DO HAVE A LOT OF MATERIALS THAT HAVE BEEN THERE FOR A LONG TIME, SO WHAT IS THE VALUE? SO WE HAVE WHAT'S CALLED A DEFAULT REPLACEMENT PRICE, THAT IF WE DON'T KNOW WHAT THE VALUE IS, WE'LL CHARGE A DEFAULT PRICE.

THAT'S NOT CHANGED SINCE 2005.

SO THE THOUGHT HERE IS TO UPDATE THAT VALUE IN ORDER TO MAKE SURE THAT WE'RE KEEPING UP WITH THE CURRENT MARKET.

OPTION TWO IS COPYING AND MOBILE PRINTING CHARGES. I KNOW THESE ARE SMALL THINGS FOR THIS HERE, BUT AGAIN, WE TRY TO BRING TO YOU ALL THE DIFFERENT OPTIONS WE'RE WORKING ON AND RECOMMENDING. WE ARE INCREASING THE 20 CENTS PER PAGE. I THINK IT WAS LIKE 5 CENTS BEFORE, BUT THE ACTUAL COST IS, I'M SORRY, 15 CENTS BEFORE. ACTUAL COST IS LIKE 19 CENTS OR SO, SO WE'RE GOING TO LOOK AT DOING 20 CENTS PER PAGE.

AGAIN, WE'RE TRYING TO BEAR IN MIND THE CLIENTELE AND THEIR ABILITY TO PAY, BUT AT THE SAME TIME, COST RECOVERING THESE SERVICES HERE, SO A 5 CENT INCREASE PER PAGE FOR THAT. AND THEN, LASTLY, NON-RESIDENT CARD FEES.

LIBRARIES ARE OPEN TO ALL. AND SO EVEN INDIVIDUALS WHO ARE NOT LIVING IN AMARILLO, PAYING TAXES IN AMARILLO. SO WITH THIS, WE DO CHARGE NON-RESIDENTS A CARD FEE TO USE A LIBRARY. WE'VE NOT CHANGED IT IN A NUMBER OF YEARS. AND SO, DOING SOME MATH, STAFF CALCULATED THAT OUR LIBRARY, GIVEN CURRENT BUDGET, IT COSTS ABOUT $21.26 PER RESIDENT. OUR CURRENT NON-RESIDENT FEE IS $18 PER INDIVIDUAL AND $33 PER FAMILY.

SO THE PROPOSED INCREASE HERE IS TO $25 INDIVIDUAL, $45 PER FAMILY, TO MAKE SURE THAT NON-RESIDENTS ARE RECOVERING MORE FROM THEM, TO MAKE SURE WE'RE COVERING COSTS THERE.

WITH THIS, I RECOMMEND ALL THREE OPTIONS FOR THIS. IN FACT, OPTION TWO IS ALREADY IN THE WORKS TO THIS, UNLESS COUNCIL SAYS OTHERWISE, BUT I RECOMMEND ALL THREE OPTIONS. GRAYSON, I HAVE A QUESTION. YES. NON-RESIDENT CARD FEES, WHEN WERE THOSE LAST INCREASED? AMANDA, DO YOU KNOW THE ANSWER TO THAT? GOOD MORNING. IT WOULD HAVE BEEN PRIOR TO 2015.

OKAY. THANK YOU. VERY GOOD.

THANKS, AMANDA. MUNICIPAL COURT, ANOTHER FYI. MUNICIPAL COURT IS AN EXAMPLE OF A DEPARTMENT THAT EXCEEDS ITS COST OF REVENUE. NOW, YOU LOOK AT, IN THE GRAND SCHEME OF THINGS, MUNICIPAL COURT IS DIRECTLY TIED TO POLICE AND OTHER SERVICES, SO THAT REVENUE IS GOING TOWARDS COURT-RELATED EXPENSES.

BUT WITH THIS, WE'RE NOT LOOKING AT, THIS IS NOT A SITUATION WHERE WE'RE TRYING TO REALIGN REVENUES WITH COSTS, BUT AT THE SAME TIME, WHAT ARE THINGS WE CAN DO DIFFERENTLY OR BETTER? THE FIRST ONE IS ACTUALLY ON YOUR AGENDA TODAY, LATER THIS AFTERNOON AT 3 O'CLOCK. STAFF WENT TO WORK LOOKING AT OUR PROCESSING FEES AND IDENTIFIED THAT WE WERE BEING CHARGED 9% PROCESSING FEE FOR CREDIT CARDS. WE'VE RENEGOTIATED THAT TO LOWER THAN 3%. THAT IS NEARLY A $300,000 SAVINGS BASED OFF CURRENT USAGE OF CREDIT CARDS. ON TOP OF THAT, WE WOULD LIKE TO SUGGEST THAT GIVEN WE'RE DOWN TO NOW LOW THAN 3%, WE WOULD LIKE TO NOW RECOUP THAT 3% THROUGH A FEE TO THE USER OF THE CREDIT CARD.

BEFORE WE WERE EATING, THAT COST. SO OUR

[02:15:02]

LAST ONE HERE IS A STAFF HAVE ACTUALLY ALREADY IMPLEMENTED THIS, BUT THEY WANT TO MAKE YOU AWARE OF IT. THEY HAVE DONE A NEW DOCKET CALL FOR SELF-REPRESENTED DEFENDANTS.

BASICALLY, THIS IS MORE EFFICIENT. AND SO THERE'S A PROCESS THEY PUT IN PLACE.

THAT ALLOWS US TO, ALONG THE WAY, GET INVOLVED WITH THESE INDIVIDUALS AND THEN GET THINGS DECIDED EARLIER OR SMOOTHER IN THE PROCESS. SO THEN THERE'S SOME COST SAVINGS THROUGH BACK END. INSTEAD OF HAVING IT ALL HIT AT THE VERY END, WE'RE DOING IT ALONG THE WAY.

IT'S A LITTLE MORE EFFICIENT.

SO WITH THIS, FOR THESE TWO THINGS, AGAIN, ITEM NUMBER TWO THERE IS ALREADY IMPLEMENTED. ITEM NUMBER ONE IS ON YOUR AGENDA TODAY, AND I RECOMMEND APPROVAL OF THAT LATER TODAY. OKAY.

ON THAT ONE, WE ALLOW OTHER PAYMENT OPTIONS? YES. SO WE'LL TAKE CHECKS OR MONEY ORDER OR WHATEVER? YES.

AND THEN CAN WE GO BACK TO LIBRARY REAL QUICK? DID YOU HAVE SOMETHING FURTHER ON THAT ONE? I JUST WANTED TO HAVE CLARIFICATION IF WE'RE MOVING FORWARD WITH THE THREE. I KNOW OPTION TWO IS ALREADY IN PLACE, BUT WHAT ABOUT OPTION ONE AND THREE? ARE WE MOVING FORWARD WITH THOSE? THAT WAS MY RECOMMENDATION. I DIDN'T HEAR OTHERWISE FROM COUNCIL. SO I'D BE MOVING FORWARD WITH OPTION ONE AND THREE, YES. OKAY. THANK YOU. ANY CONCERNS ON OPTION THREE, THE NON-RESIDENT CARD FEE? NO, NOT AT ALL. ALL RIGHT.

THANK YOU. VERY GOOD. PARKS AND RECREATION, I'M GOING TO BREAK THEM UP INTO A FEW DIFFERENT DIVISIONS.

GOLF, THIS IS A SUCCESS STORY, AND IT IS A SUCCESS STORY.

LOOKING AT THE HISTORY, THIS IS ACTUALLY, I ENJOYED LOOKING AT THIS ONE HERE BECAUSE IT BROUGHT ME MORE UP TO SPEED OF WHAT THE HISTORY OF GOLF HAS BEEN. YOU GO BACK TO ABOUT FIVE OR SIX YEARS AGO, THE GENERAL FUND SUBSIDY WAS $1.9 MILLION. THE COUNCIL AT THE TIME SAID, LET'S JUMP RATES UP. WHEN THEY DID THAT, IT WAS MORE OF A CLIFF CLIMB, AND TALKING TO STAFF, WE LOST GOLFERS. AND SO THEY EXITED FROM US. AND SO WE ENDED UP HAVING A HIGHER SUBSIDY THE NEXT YEAR, TO $1.9 MILLION. SO, SINCE THAT TIME, THE GOLF DIVISION, UNDER MICHAEL KSHUBA'S LEADERSHIP, HAS BEEN SYSTEMATICALLY INCREASING FEES, KEEPING UP WITH INFLATION COSTS, MOVING THE GOLF BALL PRICE UP, LOOKING AT THINGS THAT GETS US MORE TOWARDS COST RECOVERY, THINGS THAT THE GOLFERS COULD FIND PALATABLE. STEP BY STEP, BY STEP. SO WE HAVE GONE FROM $1.9 MILLION SUBSIDY TO $370,000 SUBSIDY, AND THE TREND SO FAR THIS YEAR THAT STAFF HAVE RELAYED TO ME IS WE'RE GOING TO BE EVEN LESS THAN THAT THIS YEAR IF TRENDS CONTINUE FOR THE REST OF FISCAL YEAR. SO...

WITH THIS, THEY'VE DONE THINGS, AGAIN, THEY'VE INCREMENTED FEES OVER TIME SO THAT THE GOLFER COMMUNITY CAN ABSORB THEM MORE EASILY. WITHOUT EXITING US AND VACATING US. THIS IS ONE OF THE THINGS WHERE WE HAVE TO BE SENSITIVE TO THE CLIENTELE. IF YOU INCREASE PRICES TOO MUCH, YOU LOSE THEM, AND YOUR SUBSIDY IS EVEN GREATER BECAUSE YOUR COSTS ARE STILL FIXED. YOU STILL HAVE TO HAVE CERTAIN COSTS TO EXIST. THEY'VE DONE THINGS LIKE NEW PROGRAMS LIKE HAPPY HOUR, EXPLORE THE FOUR.

THEY'VE BEEN REEXAMINING THEIR STAFFING. THEY'VE BEEN LOOKING AT KATE. IS THIS STAFF PERSON CORRECT OR IS THIS POSITION CORRECT? SO TALKING TO KASHUBA AND HIS TEAM, THEY'VE BEEN REEXAMINING THEIR STAFF STRUCTURE THERE, AND THEY'VE BEEN DOING TARGETED CAPITAL IMPROVEMENTS. I KNOW ONE OF THE THINGS WE LOOKED AT RECENTLY WAS PUMP STATIONS AND SO FORTH TO MAKE SURE THAT WE'RE DOING THINGS THAT FURTHER. THE GOAL OF THE GOLF COURSE. SO NOW, BECAUSE THE THING ABOUT GOLF COURSES, OF ALL THE THINGS THAT YOU DO AS A CITY, GOLF COURSE IS ONE THAT CAN BE AND IS A PRIVATE SECTOR IN OUR COMMUNITY. SO THIS IS ONE OF THE THINGS THAT COUNCILS, I'M SURE IN THE PAST, HAVE LOOKED AT, THAT. SHOULD WE OR SHOULD WE NOT BE IN THE BUSINESS OF DOING THIS? AND SO IF WE'RE GOING TO CONTINUE TO BE IN THE BUSINESS, WE SHOULD BE COST RECOVERY BECAUSE OTHERS ARE DOING THAT. AND SO, WITH THIS, OUR RECOMMENDATION IS NOT TO MAKE ANY ADDITIONAL CHANGES HERE TODAY, BUT TO ALLOW STAFF TO CONTINUE THEIR PROCESS OF MARCHING US TOWARDS COST RECOVERY STEP BY STEP. AND BASED OFF WHAT THE TRAJECTORY THEY'VE GIVEN US, IT DOES LOOK LIKE WE SHOULD HIT NEUTRALITY IN THE NEXT YEAR OR TWO OR SO.

SO, AGAIN, I CAN'T GIVE YOU, I DON'T HAVE A CRYSTAL BALL. I CANNOT TELL YOU WHAT IT WILL BE LIKE THIS UPCOMING FISCAL YEAR, BUT IT DOES. THE TREND IS THERE. WE HAVE BEEN SYSTEMATICALLY MARCHING TOWARDS COST RECOVERY. SO AT THIS POINT HERE, I WOULD NOT RECOMMEND A DEFINITIVE CHANGE FROM COUNCIL, BUT TO ALLOW STAFF AND TO EMPOWER STAFF TO CONTINUE TO MAKE THOSE CHANGES THAT THEY'VE BEEN DOING. YOU GOT IT. YOU'VE GOT ON HERE. CONTINUE STEADY APPROACH OF GRADUAL FEE ADJUSTMENTS. I MEAN, IS THAT, I MEAN, IT SEEMS PRETTY ARBITRARY. I MEAN, IS THAT JUST TO GET TO COST RECOVERY? YES. AGAIN, THAT'S FOLLOWING THE SAME PATTERN FROM 1.9 TO 3.70. SO THEY'VE BEEN DOING THAT EVERY YEAR, LOOKING AT COST, LOOKING AT PRICING FOR MERCHANDISE, LOOKING AT FOOD, LOOKING AT MEMBERSHIP FEES, WHAT'S THE MARKET DOING.

THEY'VE BEEN LOOKING AT THE WHOLE SPECTRUM, AND THEN THEY'VE BEEN INCREASING FEES. I THINK THE COUNCIL EVEN APPROVED A FEE INCREASE THIS LAST BUDGET CYCLE. SO THEY BRING

[02:20:01]

OUR MUNICIPAL GOLF COURSES ARE INCREDIBLE. THEY RANKED, YOU KNOW, TOP IN THE NATION. YOU KNOW, SO WHAT, WHERE ARE WE ON THAT? I MEAN, HOW DO WE COMPARE TO, I GUESS, THE PRIVATE COURSES, THE... I DON'T HAVE THE SPECIFIC NUMBERS, BUT I WOULD SAY WE ARE LOWER THAN A LOT OF OUR COMPETITORS. AGAIN, WE'VE GOT REALLY GREAT COURSES.

ONE OF THE THINGS THAT OBVIOUSLY COUNCIL APPROVED A FEE INCREASE AS A PART OF THE LAST BUDGET. THE CHALLENGE WITH GOLF, AND WITH A LOT OF OUR PROGRAMMING, IS WE WON'T SEE THAT UNTIL RIGHT ABOUT NOW. WE'LL START SEEING THOSE FEES TAKE EFFECT MARCH THROUGH THE END OF THE FISCAL YEAR.

BUT RIGHT NOW, THE TRENDS ARE... ARE VERY POSITIVE. WE'VE GONE UP 12,000 GOLFERS IN THE LAST TWO YEARS, WHICH IS A VERY POSITIVE THING.

AND THAT'S WHERE WE START TO SEE THAT REVENUE AND THAT COST RECOVERY INCREASE. SO AGAIN, WE'RE SEEING A CONTINUOUS GROWTH ON THE THE GOLF SIDE IN TERMS OF ATTENDANCE. WE'RE ALSO SEEING NOW THAT WE'RE ACTUALLY COVERING AND EXCEEDING THE COST ON THE GOLF COURSE IMPROVEMENT FUND. SO THAT'S ACTUALLY MONEY THAT WILL BE USED TO MAKE MORE IMPROVEMENTS IN THE GOLF COURSE AND CONTINUE TO MAKE IT BETTER. SO A LOT OF THIS IS DICTATED BY WEATHER. WE'VE BEEN PRETTY BLESSED THIS YEAR. SO I'M GUESSING WE HAD A WHOLE LOT MORE GOLFERS, RIGHT? BUT WE'VE SEEN A TREND. SO 18, 19, WE HAD 67,000 GOLFERS.

LAST YEAR, WE ENDED UP WITH 98,000. SO WE'VE SEEN A CONTINUAL TREND. AGAIN, GEORGE AND HIS STAFF HAVE DONE A REALLY GOOD JOB. WE SAW SIGNIFICANT INCREASES IN THOSE PRICES, AND WE DID SEE A PRETTY GOOD DIP IN GOLFERS. BUT WE'RE SEEING THAT CONSISTENT TREND UPWARD, WHICH IS WHAT WE WANT.

SLOW, STEADY GROWTH. SO YOU SAID, WE'RE LOWER. AS FAR AS YOU THINK THAT WE'RE LOWER, IS THERE HARM? IN TAKING A LITTLE BITE OF THIS AND GETTING US THERE. I MEAN, I KNOW GEORGE IS DOING A PHENOMENAL JOB, PROBABLY ONE OF THE BEST. BUT STILL, WHEN WE'RE TALKING ABOUT OTHER TAXPAYERS, SUBSIDIZING THE ONES WHO ARE ACTUALLY USING IT. WHY WOULD THE USERS NOT PAY? AGAIN, CLARIFICATION, OUR PLAN IS TO BRING TO YOU BACK A FEE INCREASE AS BUDGET CYCLES.

SO, AGAIN, WE DIDN'T BRING IT TO YOU TODAY, BUT STAFF WILL BE BRINGING BACK TO YOU THE NEXT STAGE OF THE INCREMENTAL INCREASES FOR THE NEXT BUDGET CYCLE.

THAT'S MY UNDERSTANDING, ISN'T IT, MICHAEL? YEP. SO WE WILL BE BRINGING BACK TO YOU A FEE INCREASE, BUT, AGAIN, IT'S PART OF OUR BUDGET PROCESS WE'VE BEEN DOING THERE.

OKAY. DID I HEAR CORRECTLY, $68,000 TO $93,000? YEAH, WELL, WE WERE AT 67,000 IN FISCAL YEAR 18-19, AND FISCAL YEAR 24-25, WE WERE AT 98,000. WITH THE INCREASES.

WITH THE IMPROVEMENTS. AND I THINK THAT'S ONE OF THE THINGS THAT WE'VE BEEN TRYING TO MANAGE IS CONTINUING THE GROWTH OF ROUNDS OF GOLF WHILE ALSO INCREASING THOSE FEES. I THINK THE BIGGEST CONCERN, IF YOU JUMP FEES TOO MUCH, THEN THE GOLF ROUNDS DROP, AND SO YOU END UP BACK WHERE YOU WERE. SO I THINK GEORGIA'S DONE A GOOD JOB OF KIND OF KEEPING THE GOLFERS HAPPY, CONTINUING TO MOVE TOWARDS COST RECOVERY, AND STILL INCREASING THOSE ROUNDS OF GOLF. YOU KNOW, THIS IS ONE OF THOSE TIMES WHEN YOU HAVE TO MAKE THE HARD DECISIONS, AND IF WE'RE DOING IT ACROSS THE BOARD AND WE'RE DOING COST RECOVERY, WE DON'T WANT TO MAKE MONEY ON IT. WE JUST WANT TO COVER THE COST. AND I DON'T KNOW WHY WE WOULD ALLOW ONE GROUP TO NOT RECOVER COST WHEN WE'RE REQUIRING EVERY OTHER GROUP TO RECOVER COST.

NO, I AGREE. AGAIN, WE'RE HEADING THERE. SO I THINK WE'RE GETTING TO THAT POINT VERY SOON.

BUT WE DON'T HAVE THE LUXURY OF TIME. WE HAVE SO MANY THINGS THAT THE CITY NEEDS. AND IT IS MY RECOMMENDATION THAT WE RECOVER THE COST IF WE'RE GOING TO DO IT. I MEAN, WE HAVEN'T TOUCHED IT SINCE 15. THE LIBRARY 05 ON SOMETHING. AND AS WE JUST GO BACK, THIS IS AN INCREDIBLE EXERCISE IN EFFICIENCY THAT WE NEED TO CONTINUE. AND IT IS MY RECOMMENDATION THAT WE WE COST RECOVER ALL THINGS. WE DON'T PICK WINNERS AND LOSERS IN COST RECOVERY. YEP, YEP. SO AS PART OF THE BUDGET PROCESS, WE CAN LOOK AT THAT. I KNOW THE STAFF IS GOING TO BRING, AGAIN, THE 370 WAS LAST YEAR'S SUBSIDY. WE DO PLAN TO HAVE A LOWER SUBSIDY THIS YEAR. AND SO MY GOAL WOULD BE WHEN YOU GET THE BUDGET THIS YEAR, WE WILL HAVE A FEE INCREASE ATTACHED TO THAT. AND WE CAN DEFINITELY TRY TO BRIDGE THAT EXTRA LITTLE GAP THERE TO GET TRIED TO THAT FULL COST RECOVERY, SO WE CAN WORK TOWARDS THAT. I WOULD SAY, I MEAN, I UNDERSTAND, BUT THIS IS A DEPARTMENT THAT'S DONE IT RIGHT. YOU KNOW, I DON'T KNOW IF I'D WANT TO BE MESSING WITH ANY ONE OF THE, I MEAN, I THINK WE'RE HEADING THERE.

BECAUSE, AGAIN, YOU KNOW, TO ME, THE KEY ON THIS, AND, OF COURSE, THIS IS THE LAST.

BUDGET THAT WILL HAVE A SHOT AT THIS COUNCIL WILL HAVE A SHOT AT, TO ME, THE MOST IMPORTANT INCREMENTAL ANNUAL FEE INCREASES. I I THINK I WOULD

[02:25:01]

SO I THINK I THINK THEY'VE DONE A GOOD JOB HERE. AND. BUT I WOULD SAY THESE OTHER FEES THAT WE'RE LOOKING AT, IT SHOULD BE SOMETHING THAT WE'RE LOOKING AT EVERY YEAR TO KEEP PACE WITH THE COST. BECAUSE IF NOT, WE'RE JUST GOING TO BE BACK IN THE SUBSIDY GAME AGAIN.

YEP, SO WE'LL DO. WE'LL BRING BACK TO THE COUNCIL THE FEE STRUCTURE FOR THE FEE, THE FEE ADJUSTMENT FOR THIS UPCOMING BUDGET CYCLE.

AND THEN AT THAT TIME, WE CAN SEE. DO WE BELIEVE THAT RECOMMENDED FEE INCREASE FOR THE STRATEGY WOULD BRIDGE THAT FINAL GAP? OR, IF NOT, IF COUNCIL WANTS TO TAKE THAT EXTRA STEP AND DISCUSS, WILL THAT CAUSE A DEFICIT BECAUSE PEOPLE LEAVE? OR DO WE THINK THAT THEY WON'T DO THAT? SO WE WILL WORK TOWARDS THAT.

TENNIS, AGAIN, WE HAVE BEEN MAKING CURRENT PROGRESS ON THAT. THE COUNCIL JUST RECENTLY APPROVED A NEW TENNIS INSTRUCTOR CONTRACT. WE ARE LEASING THIS OUT TO AN INDIVIDUAL. THIS CONTRACT, AS I UNDERSTAND FROM MICHAEL, THIS DOES A BETTER JOB OF DEFINING INCENTIVE BASE TO WHERE. THE MORE REVENUE SHE BRINGS TO US, THE GREATER THE INCENTIVE IT IS TO HER. AND SO WE'VE BEEN SEEING SOME GREAT TRENDS SO FAR THIS FISCAL YEAR ALREADY. SO WE DO BELIEVE THAT THIS DEPARTMENT, WITH ITS NEW CONTRACTOR, IS HEADING IN THE RIGHT DIRECTION FOR COST RECOVERY FOR THIS.

AND SO WITH THIS... I WOULD ONCE AGAIN RECOMMEND THAT WE ALLOW THE EXISTING PROCESS THAT COUNCIL RECENTLY APPROVED TO START PLAYING ITSELF OUT AS WE START HEADING TOWARDS COST RECOVERY IN TENNIS.

ATHLETICS, A FEW OTHER IDEAS THAT WE HAVE FOR PARKS AND RECREATION AND COST RECOVERY. A FEW THINGS HERE THAT I'M GOING TO LET COUNCIL DECIDE ON WHAT THEY WANT TO DO WITH.

ONE IS TO EXPAND FIELD AND FACILITY RENTALS, BROADEN THE ACCESS FOR ASSOCIATIONS AND LEAGUES TO ALL USE THAT, THE ASSETS.

TWO, DEVELOP NEW OR EXPANDED SPORTS OFFERINGS SO WE CAN LOOK AT OTHER RECREATIONAL THINGS WE CAN OFFER TO THE COMMUNITY AS A NEW REVENUE STREAM TO PROVIDE OUR CITIZENS.

AGAIN, USING EXISTING STAFF TO TRY TO MANAGE THAT AS BEST WE CAN.

OPTION THREE IS TO DISCONTINUE THE KIDS, INC.

PAYMENT OF $36,000 ANNUALLY.

WE CURRENTLY PROVIDE ALL THE WORK. IN ORDER TO MAINTAIN THOSE FIELDS, BUT WE ALSO, ON TOP OF THAT, SUBSIDIZE THEM $36,000, AND THEY'RE THE ONLY ENTITY THAT WE'RE GIVING REVENUE TO, LIKE THIS. AND SO THESE ARE ALL THREE OPTIONS FOR THE COUNCIL TO CONSIDER. THEY ALL COME WITH COMPLICATIONS. BASED OFF I KNOW FROM COUNCIL CONVERSATIONS, THEY'VE HAD ONE-ON-ONE. SO WITH THIS, I WOULD SEEK COUNCIL DIRECTION ON ANY OF THESE THREE OPTIONS.

I'LL JUMP OUT THERE. SO, OPTION THREE ON THE DISCONTINUING OF THE PAYMENT TO KIDS, INC., I KNOW WE HAD LOOKED AT THAT PREVIOUSLY. WE WERE STILL RELYING ON THEM TO PERFORM AND DO SOME THINGS THAT WAS BENEFITING US AS A CITY AND SOME OF THE STUFF THAT THEY WERE DOING. I BELIEVE OUR CONVERSATION WAS TO GET THE NEW KIDS, INC.

PROGRAM UP AND GOING, LET THEM BUILD THEIR FACILITIES. AND THEN REVISIT THAT. SO I WOULD JUST ASK NOT TO LOOK AT THAT IN THIS CURRENT YEAR. MAYBE YOU PUT THAT ON A 27-28. SURE. I WAS UNAWARE OF THAT INFORMATION, SO YES.

WELL, AND I THINK IT'S GOOD THAT YOU GUYS ARE LOOKING UNDERNEATH EVERY ROCK. ALSO, ONCE AGAIN, AS WE'RE GOING THROUGH ALL THESE, I THINK IT'S GOING TO BE REALLY IMPORTANT TO HAVE THOSE ACTUALS. SO THAT WE CAN SEE. ARE WE ALREADY AT COST? RECOVERY ON GOLF. WE MAY BE. WE DON'T KNOW. YOU KNOW, SO IF WE'RE NOT, THEN I DEFINITELY, IF WE'VE GOT A $3 INCREASE, MAYBE IT ONLY NEEDS TO BE $1.25. SO THOSE INCREMENTALS, LIKE IF WE CAN JUST CONTINUE TO GO BACK TO THOSE ACTUALS ONCE WE GET THERE. BUT THE OTHER EXPANDED SPORTS OFFERINGS AND SOME OF THOSE OTHER THINGS THAT ARE MORE CONCEPTUAL, I WOULDN'T WANT TO GIVE. KIND OF A BLANKET AGREEMENT OF MOVE FORWARD. I WOULD WANT TO HEAR MORE. SO IDENTIFY THOSE, BRING THEM TO US, LET US UNDERSTAND THE IMPACTS BEFORE WE PULL THAT LEVER. SO THIS POINT HERE, I THINK THAT COULD BE THE DIRECTION WE TAKE ON THAT ITEM HERE, BUT OTHERWISE, I WOULD NOT BRING THESE THREE FORWARD OTHERWISE. LASTLY, FOR PARKS AND RECREATION, SOME COST SAVINGS HERE THAT THEY GAVE TO ME, SO SOME COST REDUCTION OPPORTUNITIES OR SOME REALIGNMENT OPPORTUNITIES HERE, SOME NO-MOW HABITAT AREAS. AND SO WE HAVE A LARGE AREA OF LAND THAT WE MANAGE AS PARKS AND RECREATION, AND SO IT PROBABLY REQUIRES SOME ORDINANCE CHANGES, BUT WE CAN LOOK AT.

THANK YOU. IDENTIFYING AREAS THAT ARE OFF TO THEMSELVES, INSTEAD OF MOWING THEM EVERY FEW WEEKS, LETTING THEM GO BACK TO MORE OF A NATURAL HABITAT. THAT WOULD SAVE COSTS AND EXPENSE DOING THAT. TWO, AS THE COUNCIL IS AWARE, WE'VE BEEN WORKING WITH OUR SCHOOL PARTNERS TO TRY TO BETTER DEFINE AND BETTER CLARIFY OUR ROLE AND THE SCHOOL'S ROLE FOR MAINTENANCE

[02:30:01]

BECAUSE RIGHT NOW WE HAVE MANY AGREEMENTS FOR MANY PARKS.

EACH ONE HAS ITS OWN FLAVOR.

SO WE'D LIKE TO KIND OF KNOW WHAT IS OUR OVERALL RESPONSIBILITY, AND THAT CAN BETTER DEFINE OUR EXPENSES ON THAT. SO, NOT NECESSARILY AN ACTION FOR THAT TODAY. AND LASTLY, ONE YOU'RE ALREADY LOOKING AT, IT WILL BE ON YOUR AGENDA TODAY, THE AMARILLO ZOO LEASE. AGAIN, WE PREPARED THIS OVER A MONTH AGO, SO THANKFULLY IT HAPPENED TO COINCIDE. TODAY, YOU HAVE AN AGENDA ITEM TODAY TO OFFICIALLY LEASE THE AMARILLO ZOO TO A NONPROFIT, A PART OF THE WILD WEST WILDLIFE REHABILITATION CENTER. SO THAT IS ONE OF THOSE INCREMENTAL STEPS OF HEADING TOWARDS COST RECOVERY.

IT WON'T BE IMMEDIATE COST RECOVERY, AS YOU KNOW, IN THE BUDGET. YOU WILL SEE A STEP DOWN TO $50,000 A YEAR, BUT IN ABOUT FIVE OR SIX YEARS, ASSUMING ALL GOES WELL, THAT ITEM WILL BE GONE FROM THE BUDGET. I WOULD LIKE TO JUST GO BACK. CAN WE GO BACK TO THE SLIDE? I WOULD REALLY LIKE TO SEE THE SCHOOL PARK MAINTENANCE AGREEMENT IN PLACE WITHIN 90 DAYS IF WE CAN GET THAT DONE. I CANNOT PROMISE THAT BASED OFF INTERACTION WITH THE SCHOOL. WE'VE BEEN WORKING ON IT, AND SO THERE'S CHALLENGES WITH... GETTING SOME MEETINGS SCHEDULED, I GUESS.

WE'RE WORKING ON IT, THOUGH.

WE'RE HEADING IN A GOOD DIRECTION, BUT I CANNOT GUARANTEE YOU 90 DAYS BECAUSE I CAN'T CONTROL THE SCHOOL ON THAT.

BUT I HAVE ASKED STAFF, AND I'VE ALSO TALKED TO DR.

PARRISH. I'VE NOT TALKED TO THE CISD YET, BUT I'VE TALKED TO DR. PARRISH THAT IT IS MY GOAL, MY HOPE FOR MY, I'LL SAY, EXPECTATION THAT WE GET THIS THING DONE THIS YEAR. OKAY. CAN WE AT LEAST GET A COST OF WHAT THAT IS COSTING US? TO TAKE CARE OF SOMETHING YOU CAN WORK ON. MICHAEL YEAH, YEAH. WE ALREADY HAVE THOSE COSTS BECAUSE THAT'S OUR LANDSCAPE MAINTENANCE CONTRACT, SO WE COULD GET THOSE NUMBERS VERY QUICKLY. BUT WITH THIS, I MEAN, I, I HAVE NO TROUBLE, I HAVE NO PROBLEM TRYING TO PUSH TO SCHOOL. NOW THAT I HAVE FROM COUNCIL THAT YOU WANT THIS THING DONE IMMEDIATELY. I JUST FROM PAST EXPERIENCE, GIVEN THIS HAS BEEN A PROBLEM FOR DECADES. AND I'M TALKING TO MY PREDICE, TALKING TO MY STAFF FROM FROM OTHER PREDECESSORS. I THINK WE'VE ALREADY GONE FAR FURTHER, FAR FASTER THAN WE'VE MANAGED TO ACCOMPLISH IN YEARS PAST. I THINK GOOD LEADERSHIP RIGHT NOW FROM ASD AND OUR SIDE IS COMING TOGETHER TO GET THIS THING DONE. IT'S JUST WE'RE TRYING TO FINESSE THIS BECAUSE THEY ALSO HAVE A BUDGET THEY'RE TRYING TO MANAGE AS WELL.

BUT THE COST IS COMING TO US.

CORRECT.

BUT WE WILL NOT DROP THAT ITEM.

PLANNING, AGAIN, FULL COST RECOVERY, NOT REALLY REALISTIC. THANK YOU, MICHAEL. SO LOOK AT THIS, LOOKING AT SOME TARGETED FEE ALIGNMENTS FOR DIRECT COST. THEY'VE GIVEN ME A FEW IDEAS HERE. OVERALL, I DON'T HAVE FREE TODAY A FEE ADJUSTMENT YET. THEY WOULD LIKE TO DO A FULL COMPREHENSIVE FEE SCHEDULE REVIEW, LOOKING AT ALL THEIR FEES. THEY'VE ALREADY IDENTIFIED A FEW THAT ARE COST-RECOVERING, BASED OFF THERE ARE CERTAIN SERVICES THAT WE PROVIDE, DEVELOPERS AND EVERYONE ELSE THAT. WE FEEL THAT THE FEE IS COVERING COSTS, BUT THERE ARE SOME THAT WE CAN TELL ARE NOT. AND SO CODY AND HIS TEAM WOULD LIKE TO TAKE SOME TIME TO REVISIT OUR FEE SCHEDULE.

THIS IS SOMETHING YOU SHOULD DO EVERY FEW YEARS ANYWAYS, TO MAKE SURE THAT FEES ARE KEEPING UP WITH COSTS. AND SO I DON'T HAVE A NUMBER TO BRING TO YOU TODAY, BUT I WOULD SAY THAT I WOULD RECOMMEND THAT THE COUNCIL BE AUTHORIZED THAT WE DO PROCEED TOWARDS A FEE REVIEW SCHEDULE REVIEW. AND THEN WE'LL BRING BACK TO YOU FEE ADJUSTMENTS. IT WON'T BE A MASSIVE DOLLARS, I DON'T THINK, BUT IT WOULD BE SOMETHING, AGAIN, EVERY LITTLE BIT COUNTS, TRYING TO MAKE SURE THAT WE'RE PRECAUTIONARY COVERING ON USER SERVICES. SO, UNLESS COUNSEL SAYS OTHERWISE, WE WILL CONTINUE WITH THAT STUDY TOWARDS BRINGING BACK FEE ADJUSTMENTS. I MEAN, IT SHOULD BE EVERY YEAR, WE SHOULD BE LOOKING AT THIS, NOT... EVERY YEAR WE NEED TO BE LOOKING AT THESE FEES.

IT INCREASES IN OUR BUSINESSES, IT INCREASES IN OUR HOMES. WE SHOULD LOOK AT THIS EVERY YEAR. YEAH, ONE THING I WOULD SAY, SOME OF OUR FEES HAVE A BUILT-IN INFLATIONARY BUILDING.

LIKE I SAID EARLIER, FOR ONE OF THE FEES, 3%. AND THAT'S THE SAME THING WITH BUILDING AND SAFETY, SO HAVING AN AUTOMATIC FEE ADJUSTMENT IN THERE. SO I'D HAVE NO PROBLEM WITH DOING SOMETHING LIKE THAT. POLICE, AGAIN, FULL COST RECOVERY AS A DEPARTMENT IS UNREALISTIC, SO LOOKING AT SPECIFIC AREAS, THE SHOOTING RANGE. THE SHOOTING RANGE SERVES BOTH LAW ENFORCEMENT ENTITIES AS WELL AS PUBLIC, AND SO THE PUBLIC DO GO OUT THERE AND UTILIZE THE SHOOTING RANGE, WHICH IS GREAT.

WITH THIS, OUR RECOMMENDATION TO THE COUNCIL WOULD BE TO INITIATE A COST RECOVERY ON THE PUBLIC SIDE OF THE SPECTRUM. WE HAVE

[02:35:02]

BUT OUR RECOMMENDATION AT THIS POINT HERE IS TO TRY TO COST RECOVER ON THE PUBLIC SIDE OF THE USAGE FOR THE FACILITY. LET ME JUMP IN THERE REAL QUICK. GO AHEAD, COUNCILMAN. JUST ON THE SHOOTING COMPLEX, I'VE TALKED TO STAFF AT THE COMPLEX. IT'S ONE OF THE FEW PLACES IN THE CITY THAT WE DON'T CHARGE 18 AND YOUNGER TO GO OUT THERE AND USE, WHICH IS. I MEAN, THAT'S 33% OF THEIR POPULATION. IT IS A HUGE DRAW FOR INDIVIDUALS ON I-40 TO GO AND SHOOT AS THEY COME THROUGH, A LOT OF FOREIGN FOLKS, A LOT OF INTERNATIONAL TRAVELERS.

AND SO, BY ALL MEASURE, THE STAFF IS ASKING FOR IT TO BE ABLE TO INCREASE THE SERVICE OFFERING. I AGREE.

ON THE SHOOTING COMPLEX, COULD WE GET... AND I THINK WE COULD GET IT PRETTY EASY AS FAR AS THE WANTS AND THE NEEDS OUT THERE. DEFINITELY WOULD LIKE TO LOOK AT CHANGING THE RATES AND THE BILLABLES OUT THERE, BUT ALSO IMPROVING FACILITY.

AND SO THIS IS SOMETHING WHERE IF WE WANTED TO COMPETE WITH PRIVATE, BECAUSE THERE ARE PLENTY OF PRIVATE, LET'S LOOK AT UPGRADES OUT THERE AT THE SAME TIME, AND LET'S SEE IF WE CAN CALCULATE AN ROI ON THAT, ESPECIALLY IF WE CAN GO THROUGH SOME CIP MONIES AND BE ABLE TO FIND THAT AS A GOOD WAY FOR US TO NOT ONLY IMPROVE APD OPERATIONS, BUT ALSO FOR THE PUBLIC. YOU KNOW, CHIEF LOFTUS HAS A REALLY GOOD SKILL SET, AND HE'S CURRENTLY HEADING UP, I BELIEVE, MOST OF THAT BUDGET APPROACH. SO THIS COUNCIL DIRECTION NEEDED TO PROCEED WITH A DETAILED COST ANALYSIS, IS THAT ALL INTERNAL, OR DO YOU HAVE ANYBODY ELSE WORKING ON THAT? I WOULD LEAN TO STAFF TO HEAD THAT UP. OKAY, SO THAT WOULD BE CHIEF LOFTUS, RIGHT? I ASSUME. I MEAN, I WOULD DIRECT CHIEF HOVER, AND THEN CHIEF HOVER WOULD DIRECT THE STAFF FROM THERE. OKAY, BUT IT'S ALL GOING TO BE INTERNAL. I JUST WANTED TO MAKE SURE WE HOUSED THAT INSIDE OF THEMSELVES AND THAT THEY TAKE THE LEAD ON THAT, THAT WE WEREN'T RELYING ON MAYBE GENERAL METRICS OR THIRD PARTY. NO, YEAH, I DON'T THINK THEY WERE GOING TO DO THAT. OKAY. BUT NO, I THINK WHAT YOU SAID PRIOR TO THAT LAST ITEM THERE, I DO THINK THAT, YES, IMPROVEMENTS BECOME MORE REALISTIC ONCE WE START TO RECOVER ON THE PUBLIC SIDE.

I THINK THAT NOW THAT YOU HAVE A REVENUE STREAM COMING IN, INSTEAD OF TAX DOLLARS HAVING TO PAY FOR THOSE IMPROVEMENTS, AGAIN, SO MANY CIPS, SO MANY NEEDS, SO MANY IDEAS. BUT I THINK WHEN YOU HAVE A REVENUE STREAM COMING IN, THAT BECOMES MORE REALISTIC, I THINK. I WOULD AGREE. OKAY.

THANK YOU. PUBLIC WORKS. FIRST OFF, SOLID WASTE, NEXT STREET. SOLID WASTE, WHEN YOU LOOK AT COLLECTION AND LANDFILL AS A WHOLE, IT DOES.

NET POSITIVE BETWEEN THE TWO OF THEM, ADDED TOGETHER. BUT, AGAIN, I WENT AHEAD AND ASKED STAFF, OKAY, GO AHEAD AND DO THE EXERCISE OF LOOKING AT THE LANDFILL.

LANDFILL IS A NEGATIVE NET.

AND SO... IT DOES COST US MORE THAN THE REVENUE IN ORDER TO MANAGE THE LANDFILL.

WITH THIS, THERE'S A LOT OF CONSIDERATIONS TO BE HAD WITH THIS. WE DO HAVE COMPETITION IN THE AREA FOR LANDFILLS. WE WOULD RECOMMEND A MODEST 5% TO 10% LANDFILL TIPPING FEE INCREASE.

OUR CONCERN, BASED OFF OF CONVERSATIONS WITH VENDORS AND SO FORTH, IS THAT, GIVEN THE MARKET, IF WE BEGIN TO MEET OR EXCEED MARKET, WE WILL LOSE CUSTOMERS, WHICH THEN INCREASES THE DEFICIT.

AND SO OUR RECOMMENDATION HERE IS TO DO A 5% TO 10% LANDFILL TIPPING FEE INCREASE.

IN ORDER TO, AGAIN, MOVE TOWARDS COMPETITIVENESS WITH LOCALS. WITHOUT GIVING THE VENDORS TOO MANY GOOD OPTIONS TO CHOOSE FROM. AGAIN, I NEED THEM COMING TO MY LANDFILL, SPENDING MONEY THERE. I DON'T NEED THEM WEIGHING, WELL, IT'S ONLY A DOLLAR CHEAPER TO GO OVER HERE. IT'S ONLY A DOLLAR MORE TO GO OVER THERE.

IT'S CLOSER. I'LL GO THERE. SO IF I GET TOO CLOSE, YOU COULD SEE AN EXCESS OF VENDORS, AND THAT COULD BE VERY DETRIMENTAL TO LANDFILL.

SO THAT'S MY RECOGNITION FOR THAT. STREETS. AGAIN, AS WITH VECTOR FEE, YOU ASKED FOR ALL OPTIONS. I BROUGHT YOU ALL OPTIONS. I'M NOT RECOMMENDING THIS OPTION. BUT WITH THIS, AGAIN, THE OPTION HERE IS A STREET MAINTENANCE FEE ON THE UTILITY BILL. AGAIN, YOU DON'T HAVE TO DO THE ENTIRE DEPARTMENT.

YOU CAN DO TARGETS TOWARD, LIKE, PAVEMENT MARKINGS, SIGNAL AND SIGN MAINTENANCE, PAVEMENT REPAIRS, AND SO FORTH. BUT, AGAIN, GIVEN COUNCIL DISCUSSION ON THIS, I WILL NOT ADVANCE THIS ONE UNLESS COUNCIL CLEARLY TELLS ME TO DO THIS NEXT YEAR. HEARING NO OTHERWISE DIRECTION, I WILL ASSUME WE'RE NOT HEADING IN THAT DIRECTION. THANK YOU, SIR. TRANSIT. AS THE COUNCIL WAS AWARE THIS LAST YEAR, ONE GOOD THING, OUR POPULATION IS INCREASING.

THE BAD THING, IT COSTS US MORE MONEY NOW. WE HAVE BEEN RECLASSIFIED AS A LARGE URBANIZED AREA, SO WE LOST OVER $2.1 MILLION IN FEDERAL ASSISTANCE. THAT'S

[02:40:02]

WITH THIS, THREE OPTIONS THAT STAFF HAVE BROUGHT FORWARD TO US. AGAIN, YOU HAVE TO REMEMBER, TRANSIT SERVICES ARE VERY SPECIFIC CLIENTELE.

AND SO THIS IS NOT A CLIENTELE THAT WILL ALLOW US TO COST RECOVER. THAT'S JUST THE TRUTH OF THE MATTER WITH THAT. AND SO...

WITH THIS, OPTION ONE IS OBVIOUSLY WE'RE ALWAYS LOOKING OUT FOR MORE GRANTS. WE'RE TRYING TO LOOK OUT FOR MORE OPTIONS. THE STAFF SAID THERE ARE A FEW THINGS THAT WE'D LIKE TO TRY TO PURSUE TO SEE IF WE CAN'T RECOVER SOME OF THOSE COSTS THROUGH GRANT PROGRAMS. SO THAT'S ALWAYS AN ONGOING.

WE'RE ALWAYS LOOKING FOR GRANTS IN ALL DEPARTMENTS. WE'RE ALWAYS LOOKING FOR GRANTS. SO THIS IS ONE WE'D LIKE TO TRY TO PURSUE. OPTION TWO IS CAREFUL, FAIR ADJUSTMENTS. AS I SAID, TRYING TO BEAR IN MIND OUR CLIENTELE AND WHAT THEY CAN REASONABLY ABSORB. I DON'T... I DON'T BELIEVE WE CAN REALISTICALLY EXPECT $2.18 MILLION OF REVENUE FROM OUR CLIENTELE. SO WITH THIS, WE'VE BEEN LOOKING AT SOME REASONABLE, FAIR ADJUSTMENTS TO TRY TO HELP NARROW THAT GAP. AND LASTLY, OPTION THREE, TRANSIT ADVERTISING EXPANSION.

AS YOU GO TO SOME CITIES, YOU WILL SEE ADVERTISING ON THE SIDE OF THE BUS OR ON THEIR FACILITIES, AND SO FORTH. SO, ONE OPTION HERE. IS TO ALLOW MANAGED, IT WOULD HAVE TO BE SOME POLICY TIED TO THIS, BECAUSE IT IS STILL PUBLIC PROPERTY, BUT ALLOW FOR SOME EXTERNAL ADVERTISEMENT FOR A FEE, OBVIOUSLY, ON OUR FACILITIES, INCLUDING OUR BUSES.

BUT THAT HAD TO BE CAREFULLY VETTED OUT, CAREFULLY THOUGHT THROUGH, BECAUSE THERE ARE CERTAIN CHALLENGES, YOU KNOW, THAT COME WITH OPENING UP TO EVERYBODY. SO I JUST WANT TO SPEAK TO THAT BRIEFLY, AND I THINK OUR RIDER PARTICIPATION AND THE WAY IN WHICH WE COMPETE ACROSS THE STATE. STATE. SO DO NOT LOOK AT THIS BUCKET AS A BUCKET THAT WAS EMPTIED AND THEN IS NOT GOING TO BE FILLED BACK UP. YOU WILL MAKE DECISIONS, COUNSEL ON ELIMINATING SERVICES OR JUST PUSHING THE COST SHARE. AND THEN, AS A WHOLE, AS A GROWING COMMUNITY THAT STRUGGLES WITH AFFORDABLE HOUSING AND ALL SORTS OF ISSUES, YOU NEED TO BE ABLE TO PROVIDE THIS SERVICE. AND IT MAY NOT BE A TRUE CORE SERVICE, BUT IT IS A VITAL SERVICE. SO AS YOU LOOK AT THAT BUCKET, YOU NEED TO LOOK AT IT AS SO IT CAN GET BIGGER.

WHEN YOU GET QUALIFIED FOR ADDITIONAL GRANTS, SO, UH... OUR POPULATION GROWTH HAS PUSHED US UP INTO COMPETING WITH LARGER CITIES. AND SO THEY'RE WRITER. PARTICIPATION DEMANDS MORE DOLLARS, SO OURS WAS RESTRICTED. AS WE CONTINUE TO PUT PILOT PROGRAMS AND PARTNER WITH THE RPC, LOOK AROUND THE PANHANDLE AND BE INNOVATIVE, WHICH WE HAVE ALREADY DONE. UH... ARE WRITER? PARTICIPATION NUMBERS WILL CONTINUE TO LOOK BETTER AND BETTER, AND WE WILL SEE SOME ADDITIONAL GRANT FUNDING COMING NOW, THAT BEING SAID, YES, I UNDERSTAND IF YOU... YOU'VE GOT SOME INCREMENTAL THINGS, BUT MAYBE THE BEST IDEA TODAY WE'VE HEARD IS, YOU KNOW, COUNCILMAN TIPS FACE ON THE SIDE OF THAT. A CT IS, IT DRIVES DOWN. AND I DON'T KNOW. I MEAN, 25,000, YOU KNOW, MAYBE A GOOD STARTING POINT AND THEN PUT A 3% INCREASE ON THAT ANNUAL WITH A 10-YEAR CONTRACT. I MEAN, WE'RE WE'RE GOING IN THE RIGHT DIRECTION. SO I THINK YOU GUYS ARE WORKING.

WELL, I JUST WANT TO MAKE SURE WE LOOK AT TRANSIT AS A AS A PARTICULAR ITEM, IT'S NOT NECESSARILY LIKE WE CAN LOOK AT TENNIS, RIGHT? AND THERE, YOU SAID IT CORRECTLY.

EVERYONE APARTMENTS HAS BEEN UNIQUENESS THAT MAKES IT DIFFICULT WHEN IT COMES TO JUST BLANKET DECISIONS. AND SO THERE IS EVERY, WHILE THERE ARE CERTAIN CITIZENS IN OUR COMMUNITY THAT DON'T USE A CERTAIN SERVICE, THERE'S ALWAYS SOMEONE WHO DOES. AND SO WE HAVE A VERY DIVERSE COMMUNITY. WE SERVE ALL THE CITIZENS. AND SO JUST BECAUSE ONE PERSON THINKS I CAN DO WITHOUT SOMETHING, DOESN'T MEAN I CAN ACTUALLY DO WITHOUT THAT THING FOR SOMEONE ELSE. BUT I THINK YOU'RE EXACTLY RIGHT. TRANSIT HAS A VERY UNIQUENESS TO IT THAT WE HAVE TO BE VERY MINDFUL OF. SO I WOULD RECOMMEND ALL THREE OPTIONS IN THIS SITUATION.

UTILITIES, AGAIN, NOT A GENERAL FUND, BUT THEY DID PARTICIPATE IN THE EXERCISE AS WELL. AND SO THIS IS JUST SOME IDEAS.

AGAIN, THIS WON'T IMPACT THE GENERAL FUND, BUT GIVEN UTILITIES, IT'S SUCH A LARGE COMPONENT OF OUR BUDGET, AND GIVEN WE ARE GOING TO BE INCREASING OUR RATES FOR WASTEWATER TREATMENT PLANTS, IT'S ALWAYS GOOD FOR STAFF TO BE LOOKING AT. HOW DO WE INCREASE REVENUE FOR CIVIC USERS WHO USE CERTAIN SERVICES? SO WE CAN MAYBE... DIMINISH THAT RATE INCREASE WHEN THE WASTE OR TREATMENT PLANT COMES ONLINE. SO A FEW IDEAS THAT STAFF HAVE BROUGHT FORWARD TODAY IS THE INCREASED TAP ADMINISTRATION FEE TO COVER INSPECTION COSTS.

RIGHT NOW, BASED OFF STAFF REVIEW, THE UTILITY RATE PAYER IS PAYING TO SUBSIDIZE THE INSPECTION FEES FOR TAP FEES. CREATE INDUSTRIAL WASTE PERMIT FEE FOR SAMPLING, SITE VISITS AND COMPLIANCE MONITORING. SO, AGAIN, FOR INDUSTRIAL USERS TO ABSORB. RIGHT NOW, OUR RESIDENTIAL AND COMMERCIAL USERS ARE ABSORBING THE COST ABOVE WHAT OUR FEES ARE FOR DOING SITE SAMPLING AND COMPLIANCE FOR INDUSTRIAL WASTE PERMITS.

[02:45:01]

AND THE THINGS THAT ARE GOING ON. IN THE ENVIRONMENT. SO, WITH THIS, I WOULD RECOMMEND ALL FOUR OPTIONS FOR OUR UTILITIES SO THAT THEY CAN BETTER MANAGE THEIR REVENUE TO HELP US AS WE LOOK FORWARD TO OUR UTILITY RATE INCREASES INCREASING FOR THE WASTEWATER TREATMENT PLANT. WE'RE ALMOST TO THE END. VITAL STATISTICS.

THIS DEPARTMENT IS A SMALL SUBSIDY, $18,000 GAP IN THE BUDGET. AS I SAID EARLIER ON, THIS IS ONE AREA THAT STATE LAW SAYS THOU SHALL NOT TOUCH. THE BIRTH AND DEATH CERTIFICATE FEE. SO IF I HAVE A SUBSIDY THERE, I GET A SUBSIDY THERE. THAT'S JUST WHAT THE STATE HAS SAID.

THEY DON'T REALLY CARE ABOUT WHETHER WE CAN FLOAT.

THEY JUST LIKE GETTING ELECTED UP THERE.

AND SO WITH THIS COST RECOVERY OPTIONS, LOOKING AT NON-REFUNDABLE SEARCH FEES, WHEN A RECORD CANNOT BE LOCATED. AND SO RIGHT NOW, IF YOU COME IN AND YOU'RE REQUESTING A SEARCH AND YOU CAN'T FIND ANYTHING, YOU'RE NOT CHARGED.

BUT IT STILL COSTS US TO DO THAT SEARCH. AND SO, INSTEAD OF ONLY... POSITIVE SEARCHES GETTING CHARGED, ALL SEARCHES GETTING CHARGED.

THAT WAY, IF YOU REQUEST A SERVICE AND MANPOWER IS USED, THERE'S AN EXPENSE, THERE'S A FEE TIED TO THAT.

ENSURE CITY RECOUPS STATE FEES ASSOCIATED WITH SEARCHES. SO WE DO HAVE CERTAIN FEES WITH THE STATE THAT WE HAVE TO PAY. WE WANT TO ADD A FEE TO MAKE SURE THAT WE RECOUP THOSE COSTS FOR THOSE SEARCHES INSTEAD OF, AGAIN, THE TAXPAYER EATING THOSE COSTS. AND THEN COVER AND ACCELERATE CHARGES LIKE POSTAGE AND HANDLING. SO LOOKING AT OUR FEES AND MAKE SURE THAT THOSE FEES, WE APPLY A POSTAGE FEE TO COVER THOSE COSTS IF MAILING IS REQUIRED FOR THAT. SO, FOR ALL THREE THINGS, I DON'T KNOW IF WE WOULD FULLY COVER THE $18,000 COST, BUT I THINK THIS IS ONE WHERE WE COULD ONCE AGAIN GET TO FULL COST NEUTRALITY.

FOR THIS DIVISION, AND I RECOMMEND ALL THREE OPTIONS IN THIS SITUATION. SO I DEFINITELY WOULD NOT SPEAK FOR COUNCIL, BUT I WOULD SPEAK TO TRY TO. PERSUADE COUNCIL NOT TO TAKE THESE UP JUST BECAUSE THE $18,000 GAP IS THE SMALLEST THING THAT WE'RE LOOKING AT.

OUR TIME AND ENERGY IS GOING TO BE BETTER SPENT ON MUCH LARGER ITEMS. THIS, EVEN THOUGH IT IS A SMALL SUBSIDY, I JUST THINK IT GOES TO OUR CUSTOMER SERVICE PILLAR, AND YOU'RE JUST LOOKING AT ADDITIONAL TIME AND ENERGY SPENT WITH THESE ARE TAXPAYERS. THAT ARE ALREADY PAYING THEIR TAXES AND SO I THINK THEY'RE GOING TO LOOK AT THIS THE WRONG WAY. SO COUNCIL, CAN YOU GIVE DIRECTION, UH, GET A CONSENSUS ON WHETHER WE WANT TO MOVE FORWARD WITH THIS OR NOT AGAIN? WHERE DO YOU MAKE THE CHOICES? I MEAN, IT IS 18, BUT YOU DO 18 TIMES 10, DO 18 TIMES 20, I MEAN, AT WHAT POINT DO YOU DO YOU CHOOSE? SO IF WE'RE IN A COST RECOVERY THOUGHT PROCESS, THEN EVERYTHING SHOULD BE LOOKED AT. SO, IN FAVOR. SO, I MEAN, WHY DON'T WE JUST LET ME GET.

WHY WOULD WE NOT DO THAT HERE VERSUS WHAT WE'RE DOING IN OTHER PLACES? I THINK WE JUST DISCUSSED IT ON TRANSIT AND HOW WE DO PROVIDE CERTAIN SERVICES THROUGHOUT THE CITY. THAT ARE JUST INVOLVED IN A GENERAL FUND OFFSET. AND SO IT'S A SUBSIDY. IT'S NOT A AND WE'RE BEING MANDATED TO DO IT. SO, I MEAN, IT'S A STANDALONE. IT'S SEPARATE. YES, ROBERT.

CLARIFICATION, TOO. ANDREW, THANK YOU FOR THIS. THIS IS NOT JUST AMARILLO RESIDENTS USING THESE SERVICES. THESE ARE...

THESE ARE TEXANS, NEBRASKANS, NEW YORKERS, PEOPLE FROM OTHER COUNTRIES. SO THERE ARE SOME OF THESE FEES WILL BE RECOUPED FROM NON-AMARILLO TAXPAYING RESIDENTS THAT WE'RE CURRENTLY NOT RECOUPING. OKAY. DO YOU HAVE ANY IDEA HOW THE FEE STRUCTURE WOULD BE SET UP? WOULD IT BE JUST BASED ON TIME THAT IT TOOK FOR A SEARCH TO TAKE PLACE? ARE A LOT OF THESE SEARCHES AVAILABLE ONLINE? I MEAN, IS THAT, I MEAN, WHAT DOES THAT LOOK LIKE? IS JENNIFER HERE? STEPHANIE, DO YOU HAVE SOME? SO I CAN SPEAK TO THAT. THEY HAVE TO USE A SPECIFIC SYSTEM THAT THE STATE OF TEXAS PROVIDES, AND SO WHEN THEY DO A SEARCH IN THAT SYSTEM, IT'S COSTING.

IT COSTS, DOESN'T IT? THAT ANYONE ELSE. ACCESS THAT SYSTEM? IT DOES, YEAH. OH, SO IT'S NOT PUBLIC RECORD. NO, IT'S NOT SOMETHING YOU, IF YOU WANT YOUR BIRTH CERTIFICATE, YOU CAN'T GO OUT AND SEARCH FOR IT AND FIND DON TIP'S BIRTH CERTIFICATE. IF I WANT A PERMIT TO SEE IF A PERMIT HAS BEEN PULLED, THAT'S DIFFERENT.

THAT'S DIFFERENT, YES.

FOR VITAL STATISTICS, WE WERE JUST TALKING ABOUT SEARCH OF BIRTH CERTIFICATES AND DEATH CERTIFICATES. OKAY. THANK YOU

[02:50:01]

WE ARE TAKING INTO ACCOUNT THAT THERE ARE ITEMS THAT WE PERFORM THAT ARE NOT COST RECOVERY, VECTOR PROGRAM BEING ANOTHER ONE. IS THERE ANY, SO JUST TO MAKE SURE, WE'RE JUST CHARGING THE MINIMUMS IN THESE AREAS, OR MAXIMUMS? WE'RE NOT CHARGING AT ALL. NO, WE'RE CHARGING, LIKE FOR THE SEARCH FEE, WE CHARGE IF WE FIND SOMETHING, NOT IF WE DON'T FIND SOMETHING.

BUT WE STILL HAD TO PAY A FEE TO ACCESS AND LOOK FOR THAT.

BUT RIGHT NOW, WE'RE EATING THAT COST.

BUT THERE'S SOME OF THESE THINGS HERE, IN THE SECOND ITEM, AGAIN, WE'RE NOT CHARGING THAT ONE.

AND THEN THE THIRD ONE, THE CIVIC CHARGES, THIS IS MORE FOR POSTAGE AND HANDLING.

THAT'S ONE YOU COULD DROP OFF.

THAT WAS A LITTLE MORE OF AN ARBITRARY ONE, BUT THE FIRST TWO ARE A LITTLE MORE PRECISE BECAUSE THERE'S A FEE ASSOCIATED WITH THAT. THAT'D BE FINE. OKAY. BRING IT BACK.

DIRECTION FOR RIGHT NOW WOULD JUST BE TO BRING IT BACK, I THINK, LOOK A LITTLE FURTHER INTO IT ONCE WE GET CLOSER TO BUDGET. OKAY. VERY GOOD.

THANK YOU. ALL RIGHT, THAT WAS EVERYTHING. AND WE TACKLED THEM ALL AS WE WENT, SO I DON'T THINK I NEED ANY MORE GUIDANCE. THIS COUNCIL WANTS TO REVISIT ANYTHING, BUT I THINK WE HAVE COVERED EVERY DEPARTMENT. AND IT IS 1215, AND SO UNLESS THE COUNCIL HAS MORE.

WILL WE BE ABLE TO SEE WITH THE DIRECTION GIVEN TODAY, DO WE HAVE ANY IDEA WHAT THOSE DOLLARS, THE TOTAL SUM OF THOSE DOLLARS IS? YES, I'LL BE BRINGING IT BACK TO YOU IN THE BUDGET. AGAIN, MY NEXT STEP, I ASKED STAFF, WE DIDN'T GO INTO A FULL DEATH CALCULATION, AND SO MY GOAL, AS PART OF THE BUDGET PROCESS, NOT TO GET OUT OF LINE HERE WITH THE PROCESS, BUT STAY IN OUR CURRENT FORM TO BRING THOSE BACK TO YOU AS PART OF THE BUDGET, BUT WE CAN LINE ITEM THOSE FOR YOU ALL. SO, YOU KNOW, OKAY, WE DID THE MATH, WE LOOKED, WE DID THE ANALYSIS.

THIS IS WHAT THIS FEE, ANIMAL MANAGEMENT, VECTOR, WHATEVER, NOT VECTOR, BUT VITAL, WHATEVER IT IS. PRODUCES. AND SO I WOULD RECOMMEND COUNSELOR.

TIS BROUGHT THIS UP EARLIER. I WILL BRING THOSE NUMBERS BACK TO AS PART OF THE BUDGET PROCESS. THANK YOU ONE LAST THING KESHUBA, I LOVE WHAT YOU DO, I PROMISE YOU, I LOVE WHAT YOU DO FOR THE PARKS, SO THANK YOU.

IT ALWAYS SEEMS LIKE WE COME BACK AND FORTH ON THE GOLF DEAL, BUT I REALLY APPRECIATE WHAT YOU DO. I DO HAVE ONE, ONE MORE THING, UM, HOW MUCH EMPTY SPACE DO WE HAVE IN THIS BUILDING? ANDREW, CAN YOU SPEAK TO THAT? MAYBE, JERRY? JERRY PROBABLY KNOWS BETTER. IT'S AROUND $40,000? $50,000? $35,000. $35,000 WITH THE BASEMENT AND A COUPLE OTHER FLOORS. RIGHT. SO ARE WE LOOKING AT CONSOLIDATING SOME OF OUR OFFICE, CITY OFFICE SPACE, LIKE THE SIMS BUILDING, BRINGING EMPLOYEES OVER HERE AND CLOSING DOWN THAT OPERATION? WE'VE HAD LOTS OF DISCUSSION ON THAT.

AND SO, AGAIN, DEPARTMENTS ARE LOCATED WITH DEPARTMENTS THAT THEY INTERACT WITH. AND SO TO PULL ONE IS TO PULL FOUR. AND SO HE'S TRYING TO MANAGE, OKAY, CAN I FIT ALL FOUR OR ALL FIVE OR ALL SIX OVER HERE? SO ANGIE AND I HAVE HAD MANY CONVERSATIONS ABOUT THIS. IF I PULL THIS ONE, WHAT DOES THAT DO TO THE EFFICIENCY OF THAT DEPARTMENT? AND SO A LOT OF OUR DEPARTMENTS ARE LOCATED IN AREAS WHERE THEY CAN BE EFFICIENT WITH EACH OTHER. I GET IT.

WE'RE ALL DOWNTOWN, BUT AT THE SAME TIME, IT'S MORE EFFICIENT TO WALK ACROSS THE HALL THAN TO HAVE TO GO ACROSS TO THE DOWNTOWN AREA.

BUT AGAIN, THAT'S THE PROBLEM WE'RE UP AGAINST IS THERE'S NOT QUITE ENOUGH SQUARE FOOTAGE TO BRING ALL THAT NEED.

TO STAY TOGETHER, TOGETHER.

THE INITIAL GOAL WASN'T TO FILL THE SPACE UP IMMEDIATELY, IT WAS TO ALLOW FOR GROWTH POTENTIAL IN THE FUTURE. 10, 20 YEARS OUT. VERY GOOD. ANY OTHER QUESTIONS FROM COUNCIL? YEAH, I WAS GOING TO SAY, WE DID, ALONG THOSE SAME LINES, WE'VE TALKED ABOUT EDC. WE'VE TALKED ABOUT SOME OTHER ENTITIES THAT WE'RE PAYING RENT, THAT MAYBE WE BRING THEM IN-HOUSE. I MEAN, THOSE THINGS ARE BEING LOOKED AT. YES.

YEAH. I KNOW THERE'S A DIFFERENT OPINION AMONG COUNCIL ABOUT THAT ONE, BUT THAT IS ONE AREA THAT I'D LIKE TO LOOK INTO IS MAYBE ENCOURAGING THOSE PARTNERS TO COME JOIN US. OKAY. ONE OTHER THING, I KNOW WE TALKED ABOUT ANIMAL WELFARE MANAGEMENT, BUT AS I LOOK AT THESE DEPARTMENTS, I THINK PARKS AND REC WOULD BE THE ONLY OTHER DEPARTMENT THAT I SEE.

THAT WE HAVE AN ADVISORY BOARD TO US. I DON'T KNOW IF ANY OTHERS WOULD FALL UNDER THAT.

BUT JUST LIKE WITH ANIMAL WELFARE MANAGEMENT, I THINK WE SHOULD PRESENT WHAT WE'RE TALKING ABOUT TO THE PARKS AND RECREATION BOARD AS WELL, JUST TO GET THEIR INPUT, FEEDBACK.

THEY MAY THINK OF SOMETHING THAT WE'RE MISSING. I DON'T KNOW IF ANY OTHER OF THESE DEPARTMENTS HAVE AN ADVISORY BOARD, BUT IF THEY DO, I'D RUN THAT THROUGH THEM AS WELL.

LIKE I SAID EARLIER, YES, THE PLAN HERE, AGAIN, WE'RE NOT GOING TO START THE FEED. TOMORROW.

THE PLAN WOULD BE

[02:55:01]

I WOULD THEN TASK STAFF WITH STARTING THOSE PROCESSES BECAUSE I DON'T WANT TO WAIT UNTIL OCTOBER 1ST TO DO THAT. I WANT TO GET THEM MOVING SO THAT WHEN OCTOBER 1ST HITS, WE'RE IN FULL STRIDE. SO, QUESTION ON IMPLEMENTATION OF THE FEES. DO YOU HAVE THE INTENT TO IMPLEMENT ANY OF THESE ADDITIONAL FEE INCREASES PRIOR TO AUGUST 1ST? THERE WOULD BE, CASE BY CASE, POSSIBLY YES. AND SO IF WE DID IDENTIFY A CASE THE COUNCIL WANTED TO MOVE FORWARD ON PRIOR TO THAT, WOULD YOU DO THAT IN THE FORM OF A BUDGET AMENDMENT AND AMEND CURRENT BUDGET? YOU WOULD JUST DO THAT IN THE FORM OF A RESOLUTION? I MEAN, WE'LL BRING BACK TO YOU ONE BIG BUDGET AMENDMENT WHEN IT'S ALL DONE, BECAUSE BY THE TIME WE IMPLEMENT THESE FEES, AGAIN, GIVEN... THE REALISTIC REVENUE THEY'RE GOING TO PRODUCE, YOU'D BE MENDING A BUDGET FOR A FEW THOUSAND DOLLARS, AND THAT'S NOT GOOD USE OF YOUR TIME. OKAY. I WOULD REQUEST, THOUGH, SINCE WE HAVE ADVISORY BOARDS, I WOULD LIKE TO GET THERE. I WOULD LIKE TO RUN THOSE TWO THINGS THROUGH THEM BEFORE IT COMES BACK TO COUNCIL. OH, YES, YES.

AGAIN, YES, WE'RE GOING TO RUN THOSE DEPARTMENTS THAT HAVE BOARDS, THOSE IDEAS THROUGH THOSE BOARDS. AGAIN, WHEN I BRING A RESOLUTION TO THE COUNCIL, IT'S GOING TO STATE THERE THAT THIS IS GOING TO BE EXPLORED AND VETTED, NOT THAT IT'S GOING TO BE DONE. IT'S GIVEN ME MARCHING ORDERS THAT I KNOW OFFICIALLY THAT YOU'VE ALL VOTED ON BECAUSE TODAY YOU CAN'T VOTE. BUT MY GOAL WOULD BE TO BRING YOU AN ACTION ITEM TO WHERE, OKAY, GRAYSON, GO FORTH AND EXPLORE THESE, OR DO THESE, OR WHATEVER IT IS. AND THEN SOME OF THOSE WILL BE A NATURAL BRING BACK TO YOU ALL. GRAYSON, AND JUST ALL THE STAFF, THANK YOU.

THIS, TO ME, FEELS... REALLY HEALTHY. FEELS REALLY LIKE WE'VE DONE SPRING CLEANING, LIKE, REALLY GOT IN AND CLEANED THIS UP. AND I LOOK FORWARD TO IT MOVING FORWARD AS WE REALLY TIGHTEN DOWN WHERE THE MONIES ARE BEING LOST. THANK YOU. THANK YOU.

EVERYTHING GOES TO MY STAFF. I REALLY APPRECIATE IT. THEY DID ALL THE WORK HERE. I JUST PUT IT TOGETHER IN ONE REPORT. SO THEY DID ALL THE HARD WORK DOING THIS TODAY. SO I THANK MY ENTIRE TEAM FOR EVERYTHING THEY'VE DONE TO GET US TO THIS POINT.

WELL, THANK YOU. DEFINITELY HAVE A STRONG TEAM THAT SUPPORTS YOU, AND THIS IS GOOD LEADERSHIP IN SETTING US UP FOR SUCCESS AS WE MOVE FORWARD INTO THIS NEXT BUDGET CYCLE.

AND THEN I BELIEVE IT ALL COMES DOWN TO EXPECTATIONS. I THINK WE ARE COMMUNICATING VERY DIRECTLY WHAT WE ARE ASKING FOR, AND WE LOOK FORWARD TO LETTING YOU GUYS DELIVER ON THAT. SO THANK YOU FOR YOUR TIME TODAY. DO YOU HAVE ANYTHING FURTHER BEFORE WE ADJOURN? NO, SIR.

OKAY. I GREATLY APPRECIATE EVERYBODY BEING HERE. WE WON'T DELAY ANYONE ANY FURTHER. I DO SEE A COUPLE CITIZENS THAT ARE OUR TAXPAYERS OUT HERE THAT DON'T WORK FOR THE CITY, SO I'LL OFFER TO HANG BACK. IF YOU GUYS WANT TO OFFER ANY FEEDBACK ON YOUR THOUGHTS ON TODAY'S MEETING. AND THEN AT THAT COUNCIL, WE ARE ADJOURNED UNLESS YOU HAVE ANYTHING FURTHER. YOU'RE ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.