Mar 27, 2026 City Council Special Meeting

ALL RIGHT. NOTHING ON YOUR END, SIR? YES, SIR. OKAY.

[Call to Order]

[00:00:04]

THIS FRIDAY, MARCH 27TH AT 2:00 P.M. WE'RE GOING TO GO AHEAD AND OPEN UP THE MEETING BY TAKING PUBLIC COMMENT.

DO I HAVE ANYONE HERE TODAY THAT WOULD LIKE TO OFFER PUBLIC COMMENT? OKAY. I DON'T SEE ANYONE HERE. SO WE'LL CLOSE PUBLIC COMMENT.

[2.1. Consider Filing of City of Amarillo Annual Comprehensive Financial Report. This item is to review and consider receipt of the City of Amarillo Annual Comprehensive Financial Report for the fiscal year ended September 30, 2025, filed in accordance with Section 103.003, Texas Local Government Code. (Katrina Owens, Interim Chief Financial Officer)]

WE HAVE CLA CLIFTON LARSON ALLEN OUR AUDIT COMPANY HERE.

AND THAT IS SCOTT KRCHNAK. AND SO SCOTT, WE'VE GOT YOU UP, WE CAN SEE YOU ON THE SCREEN.

I KNOW YOU CAN'T SEE US, BUT YOU CAN HEAR US FINE? I CAN HEAR YOU JUST FINE. YES. WELL, TODAY IS KIND OF A WORKING MEETING WITH THE ONE ITEM.

AND SO WE'RE ALREADY ROLLING PRETTY GOOD. AND IF WE CAN, WE JUST WANTED TO HAND IT OVER TO YOU AND LET YOU TAKE.

WE'VE GOT SOME COUNCIL MEMBERS HERE THAT THAT HAVE NOT SEEN THE DOCUMENT.

SO I GUESS LET ME BACK UP.

WE ARE MISSING COUNCILMAN PRESCOTT HE'S BLESSED AND FAVORED TODAY TO WELCOME HIS GRANDSON INTO THE WORLD.

AND SO HE WILL BE. OKAY. HE'LL BE GETTING A HIS FIRST GRANDSON HERE TODAY.

SO HE IS AT THE HOSPITAL WITH HIS DAUGHTER, I BELIEVE.

SO HE WON'T BE HERE. BUT THEN COUNCILMAN PRESCOTT AND MYSELF SIT ON THE AUDIT COMMITTEE AND WE MET WITH YOU GUYS.

WAS IT LAST THURSDAY? AND SO WE SAW A DRAFT OF WHAT YOU PRESENTED, BUT NOT THIS DRAFT.

AND SO THE OTHER COUNCIL MEMBERS GOT YOUR EMAIL LAST NIGHT, BUT REALLY HAVEN'T SEEN THE HARD COPY UNTIL TODAY.

SO WHAT.

AND HIT THE HIGHLIGHTS.

WHAT YOUR WHAT YOU WERE DOING, WHAT YOU DID. AND THEN I WOULD LOVE IT IF COUNCIL HAS ANY QUESTIONS.

WE CAN LET THEM ASK YOU QUESTIONS OR WE HAVE OUR FINANCE OFFICERS HERE, FINANCE STAFF.

SO MRS. OWENS COULD ANSWER ANY QUESTIONS AS WELL.

SO IF WE CAN, WE'RE GOING TO HAND THE MEETING OVER TO YOU FOR A MINUTE, SIR. MAYOR, BEFORE I BEFORE WE DO THAT, I JUST. COUNCILMAN WORK ON STAFF'S PART AS WELL AS OUR AUDITING FIRM.

BUT MY UNDERSTANDING IS, I MEAN, THE REASON WE'RE HERE TODAY IS THE LAW REQUIRES US TO FILE THIS ACFR WITHIN 180 DAYS OF THE CLOSING OF THE FISCAL YEAR, WHICH IS THAT DEADLINE IS COMING UP.

AND SO IF THAT'S IF THAT'S CORRECT, I THINK THAT'S WHY WE'RE HERE.

I'M COMFORTABLE MOVING FORWARD TO WITH THE FILING OF THE DRAFT.

THAT SAID, AS YOU SAID, WE JUST RECEIVED THIS YESTERDAY AND IT'S LONG [LAUGHTER].

IT'S A 342 PAGES. I THINK IT'S AN IMPORTANT REPORT.

AND SO WHAT I WHAT I WANT TO FILING OF THE DRAFT TO MEET THE DEADLINE I THINK IS GREAT.

I DON'T THINK IT MAKES SENSE FOR US TO TRY TO HAVE SOME TYPE OF FULL DISCUSSION ABOUT THIS WITHOUT TIME TO REVIEW IT.

AND I GUESS ALSO TIME TO REVIEW A FINAL VERSION OF IT.

AND I GUESS THAT WOULD BE ON THE MEETING OF THE 14TH.

AND AGAIN, I'M ALSO AWARE THAT SOME MEMBERS OF COUNCIL HAVE HAD CONVERSATIONS WITH THE AUDITOR.

OTHERS HAVE NOT. I THINK IT'S IMPORTANT TO HAVE EVERYONE TO KIND OF HAVE AN OPPORTUNITY TO REVIEW THE REPORT AND ASK THOSE QUESTIONS.

SO WE'RE ALL CAUGHT UP AT THE SAME SPEED, BECAUSE I THINK JUST BECAUSE OF THE WAY IT WORKS WITH THE AUDIT COMMITTEE YOU KNOW, A COUPLE OF YOU ARE KIND OF AHEAD OF THE THREE OF US.

AND THEN ALSO JUST GIVEN THAT THIS IS A SPECIAL FRIDAY AFTERNOON MEETING WHERE MOST PEOPLE ARE DOING OTHER THINGS.

THERE'S LIMITED PUBLIC VISIBILITY. I THINK HAVING A ROBUST DISCUSSION AT A REGULAR MEETING PROVIDES KIND OF A MUCH HIGHER LEVEL OF TRANSPARENCY.

AND THEN IN ADDITION COUNCILMAN PRESCOTT HAS OTHER ISSUES TODAY.

NOT HERE. YOU KNOW, IF WE'RE GOING TO GO IN DEEP, I THINK IT'S GOOD FOR ALL OF US HERE.

SO I APPLAUD THE, YOU KNOW, I SUPPORT THE FILING OF THE DRAFT TO MEET THE REQUIREMENT.

BUT, YOU KNOW, I WOULD HOPE THAT WE WOULD JUST HOLD OFF ON REALLY DIGGING IN THE DETAILED DISCUSSIONS UNTIL WE HAVE A CHANCE TO REVIEW IT, ASK OUR QUESTIONS, AND THEN WE'RE ALL KIND OF UP TO SPEED ON IT.

SO I JUST WANTED TO GET CLARITY ON WHAT OUR MISSION WAS TODAY.

WELL, I THINK WE I THINK THAT'S GREAT. COUNCILMAN SIMPSON. SO LET'S GO BACK AND KIND OF RETRACK WHAT WE HAD HOPED WE WOULD HAVE.

AND SO LET ME, LET ME START BY GIVING SOMEWHAT OF AN EXPLANATION AND YOU COULD MS. KATRINA, YOU COULD LEND TO THIS. WE HIRED A NEW AUDIT COMPANY THIS LAST YEAR.

SO THIS IS HIS FIRST YEAR WITH US, WHICH THERE'S PROS AND CONS TO THAT.

THE PRO TO THAT IS WE'VE GOT A FRESH SET OF EYES.

[00:05:01]

WE HAVE AN EXPERT HERE AS A SENIOR THAT THAT CAN SPEAK TO MANY THINGS FROM HIS FIRM AS TO WHAT'S NORMAL AND WHAT WHAT'S NOT.

SO I THINK IN, IN HIRING CLA AND THEN ALSO YOU TRANSITIONED TO A NEW ACCOUNTING SOFTWARE.

AND SO WE KNOW THAT YOU'VE HAD SOME STRUGGLES.

I THINK THE PUBLIC HAS HEARD THAT, THAT NOT EVERYTHING MIGRATED OVER.

AND SO WHAT WE WOULD HAVE LIKED IS WE WOULD HAVE LOVED TO HAVE HAD THIS DRAFT TWO, THREE WEEKS AGO, AND THEN WE COULD HAVE HAD SOME OF THESE DISCUSSIONS, AND THEN WE COULD HAVE ALL SAT DOWN AND HAD A ROBUST DISCUSSION WITH MR. KRCHNAK AT THAT TIME. NOW, WHAT I WOULD SAY IS, IS WE'RE ABLE TO DO THAT ON APRIL 14TH.

AND I AGREE WITH MY COUNCILMAN OVER HERE. WE WANT EVERYBODY TO COME PREPARED.

WE WANT EVERYBODY TO BE ABLE TO SPEAK TO THINGS.

WE WANT TO TAKE THE TIME IT'S GOING TO TAKE IN THAT REGULAR MEETING.

BUT WE'VE ALSO SCHEDULED A SPECIAL MEETING HERE TODAY.

WE HAVE HIM HERE WITH US. WE'VE GOT THE DOCUMENT, AND I FIND IT A VERY GOOD USE OF TIME TO ALLOW HIM TO WALK US THROUGH IT, GIVE US AN OVERVIEW, ALLOW US, AS COUNCIL, TO MAYBE BRING UP SOME QUESTIONS AND SOME THINGS THAT WE'RE STILL LEARNING AND TRYING TO FIGURE OUT.

WHAT DOES THIS MEAN WHEN IT SAYS RESTRICTED OR UNRESTRICTED? WHERE IS THIS HELD? WHERE IS THAT IN THE DOCUMENT? CAN WE SEE THIS? DID YOU DO THAT? THAT WAY AS YOU GUYS REACH OUT TO MR. KRCHNAK IN THE FUTURE OR NEXT WEEK OR WHATEVER, AS YOU'RE REVIEWING YOUR DOCUMENTS, THANK YOU.

I'LL SEE YOU OVER THERE. THEN YOU GUYS ARE LISTENING AND, AND THE OTHER THING THAT I WANT TO MAKE SURE WE DON'T FORGET, COUNCILMAN SIMPSON. EVEN THOUGH I GET TO SIT ON THE AUDIT COMMITTEE, IT'S, IT'S THE GENERAL PUBLIC THAT WE WANT THEM TO BE ABLE TO UNDERSTAND WHAT THE AUDIT PROCEDURE IS, UNDERSTAND WHAT THE AUDIT DOCUMENT IS.

IF THEY GO AND LOOK AT THIS ONLINE, THEY ENJOY ENGAGING.

THEY WANT TO LISTEN. WE HAVE PEOPLE THAT THAT NOT ONLY ARE, YOU KNOW, HERE REGULAR, BUT, BUT THEY WATCH ONLINE.

AND SO I JUST THINK, YOU KNOW, WE'VE ALL TAKEN THE TIME TO BE HERE TODAY.

SO I WOULD LIKE TO TAKE AN HOUR TO TWO HOURS AND GO THROUGH THIS.

I DON'T WANT TO SIT DOWN WITH OUR PUBLIC BEING NOTICED THAT WE'RE DOING SOMETHING HERE AND GIVE THE NOT ILLUSION, BUT GIVE, GIVE THE, YOU KNOW, INSINUATION THAT WE JUST GRABBED SOMETHING AND PUT IT ON THE SHELF.

WE'RE EXPLAINING IT VERY WELL THAT WE'RE JUST GOING TO RECEDE IT HERE AND FILE IT IN THE CITY SECRETARY'S OFFICE.

BUT WITH SCOTT ON THE LINE HERE, I THINK IT'D BE GREAT TO AT LEAST LET HIM, YOU KNOW, TAKE US THROUGH IT.

AND I KNOW I LEARNED A GREAT DEAL IN THE AUDIT COMMITTEE.

JUST IN, YOU KNOW, THE TWO HOURS THAT WE HAD TOGETHER AND I WOULD LIKE TO ALLOW OUR OTHER COUNCIL MEMBERS TO, TO REALLY HEAR AND LISTEN AND LEARN AS MUCH, GLEAN AS MUCH HERE TODAY AS POSSIBLE.

TOTALLY AGREE WITH YOU. THIS IS NOT GOING TO SUBSTITUTE THAT CONVERSATION ON THE 14TH.

STILL WANT TO HAVE THE FULL CONVERSATION ON THE 14TH.

BUT LET'S LEARN EVERYTHING WE CAN HERE TODAY.

OKAY. WELL, I'VE GOT IF WE'RE GOING TO LOOK AT THAT AND IF WE'RE, IF WE'RE GOING TO TAKE A VOTE ON IT TO, TO FILE IT AGAIN, NOT APPROVE IT. I'VE GOT A, I'VE GOT ABOUT AN HOUR AND THEN I'M GOING TO, I'M GOING TO, I'VE GOT ANOTHER CONFLICT THAT I'VE GOT TO ATTEND TO AFTER THAT SO. OKAY. IF YOU KNOW, IF WE NEED TO, I MEAN, THAT WOULD STILL LEAVE A QUORUM. I DON'T KNOW HOW WE WANT TO HANDLE THAT, BUT.

CAN GET IT FILED IF CONVERSATIONS ARE EXTENDED.

SO WE DON'T WANT TO DELAY YOU FROM YOUR OTHER OBLIGATIONS, BUT APPRECIATE YOU BEING HERE FOR THE TIME THAT YOU HAVE ALLOWED.

AND WHO KNOWS, WE MAY WE MAY HAVE A MORE BRIEF DISCUSSION THAN WHAT WE THINK.

OKAY, THANK YOU. YES, SIR THANK YOU. SO, MR. KRCHNAK, IF WE CAN HAND IT OVER TO YOU, WE'LL LET YOU RUN WITH IT.

OKAY. THANK YOU, MAYOR STANLEY AND I DID WANT TO OFFER MY CONTACT INFORMATION TO ALL OF THE COUNCIL MEMBERS. I KNOW MAYOR STANLEY, YOU HAVE THAT WHICH INCLUDES MY CELL PHONE NUMBER, DIRECT LINE HERE AT THE OFFICE AS WELL AS EMAIL. SO I KNOW THIS DOCUMENT WAS JUST RECEIVED LAST NIGHT IN PDF FORM, AND A PRINTED VERSION WAS JUST SUPPLIED TODAY. AND OBVIOUSLY IT'S A LARGE DOCUMENT.

THERE WAS NOT SUFFICIENT TIME TO GO THROUGH THE DOCUMENT AND FORMULATE QUESTIONS.

BUT AS YOU'RE GOING THROUGH THIS DRAFT DOCUMENT AND YOU HAVE ANY QUESTIONS THAT YOU WANT TO ASK OF ME, I'M JUST OFFERING THAT. IF MAYOR STANLEY COULD SHARE MY CONTACT INFORMATION WITH THE

[00:10:03]

THAT'S GREATLY APPRECIATED. I'VE SHARED IT WITH THE COUNCIL BUT CAN GLADLY SEND IT AGAIN IF ANYBODY NEEDS IT.

OKAY. AND AGAIN, THIS IS A DRAFT OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE PERIOD OCTOBER 1ST, 2024 THROUGH SEPTEMBER 30TH, 2025. KEY WORD THERE.

IT IS A DRAFT AND YOU CAN PROBABLY SEE, AS NOTED THROUGHOUT THE DOCUMENT, A WATERMARK STAMP THAT SAYS DRAFT SUBJECT TO CHANGES. SO THIS IS A DOCUMENT THAT COULD HAVE SOME CHANGES.

THOSE CHANGES COULD COME AS A RESULT OF CITY COUNCIL QUESTIONS.

WE LOOKED INTO THIS FURTHER AND WE MAY HAVE TO REGROUP SOMETHING OR THE AMOUNTS COULD CHANGE.

SO KEEP IN MIND THIS IS A DOCUMENT THAT IS OPEN TO ANY CHANGES THE CITY COUNCIL MAY HAVE IF THOSE CHANGES ARE WARRANTED, IF YOU WILL.

AND JUST A LITTLE REPORT ON THE AUDIT ITSELF.

AS MAYOR STANLEY MENTIONED, THIS IS THE FIRST YEAR FOR CLIFTON LARSON ALLEN, COMMONLY REFERRED TO AS CLA TO PERFORM THE AUDIT. AND AGAIN, I THINK THE CITY OF AMARILLO FOR THE OPPORTUNITY TO SERVE AS YOUR INDEPENDENT AUDITORS.

AND AGAIN, THIS IS A DRAFT. WE WOULD HAVE HOPED THAT AT THIS POINT IT WOULD BE A FINAL SIGNED DOCUMENT FROM CLA TO THE CITY. THAT'S WHAT WE ARE AIMING FOR IN FUTURE YEARS.

THIS BEING THE FIRST YEAR, THERE IS A LEARNING CURVE FROM CLA LEARNING THE CITY OF AMARILLO.

BUT I THINK THE BIGGEST PART OF THIS BEING A DRAFT AT THIS STAGE, AS OPPOSED TO A FINAL, WAS THE CITY WENT THROUGH A MAJOR ERP CONVERSION OR SOFTWARE CONVERSION THIS YEAR, WHICH TOOK A LOT OF TIME.

AND KATRINA, IF YOU'RE THERE, YOU COULD PROBABLY INTERJECT ON THIS TO FULLY UNDERSTAND THE VARIOUS TYPES OF REPORTS AND GROUPINGS THAT COME OUT OF THAT SYSTEM AS THEY RELATE TO A TRIAL BALANCE AND REPORTS AND GROUPINGS TO TIE INTO THIS ANNUAL COMPREHENSIVE FINANCIAL REPORT.

KATRINA, DO YOU HAVE ANY FURTHER COMMENTS ON THAT? THAT WAS THE MAJOR REASON FOR THE THIS BEING A DRAFT AS OPPOSED TO A FINAL DOCUMENT AT THIS POINT. YES. I WILL ADD THAT WHEN YOU HAVE A NEW SYSTEM AND IT'S A FANTASTIC SYSTEM, THERE ARE A LOT OF CANNED REPORTS THAT DON'T ACTUALLY GIVE YOU WHAT YOU WANT.

THANKFULLY, WE HAD HIRED CONSULTANTS TO HELP US BUILD REPORTS, SO WE WERE ACTUALLY ABLE TO EXPEDITE THE NEEDS FOR THE AUDITOR, BUT MANY OF THE ITEMS NEEDED HAD TO BE PROGRAMED AND WRITTEN TO HANDLE THE NEEDS FOR THE AUDIT.

AND I, THANK YOU KATRINA. AND I DID WANT TO ADD AT THIS POINT.

I WANT TO THANK KATRINA AND THE ENTIRE FINANCE DEPARTMENT, AS WELL AS THE [INAUDIBLE] IN THE INTERNAL AUDIT DEPARTMENT FOR THEIR COMMITMENT TO THIS AUDIT, TO GET IT TO WHERE WE ARE RIGHT NOW.

I KNOW IT'S COUNTLESS HOURS, OVERTIME, HOURS THAT HAVE BEEN INVESTED NOT ONLY BY CITY STAFF, BUT AS WELL AS THE CLA STAFF. SO I JUST WANT TO COMMEND THE CITY OF AMARILLO AS A WHOLE, THE THE STAFF, FOR THE LEVEL OF EFFORT THEY PUT FORTH TO GET THIS DOCUMENT TO THIS STAGE WHERE WE ARE TODAY.

AND ANOTHER THING I DID WANT TO MENTION. WHEN THE FINAL DOCUMENT IS ISSUED, THERE WILL BE A SIGNED THE INDEPENDENT AUDITOR'S REPORT. IN THAT DOCUMENT WITH CLIFTON LARSON ALLEN SIGNATURE ON IT, IT WILL BE ON CLA LETTERHEAD. AND THAT INDEPENDENT AUDITORS REPORT WILL, WE WILL

[00:15:04]

SO THAT IS FORTHCOMING WITH THE FINAL SIGNED DOCUMENT THAT YOU WILL RECEIVE AN UNMODIFIED OR CLEAN OPINION ON THESE FINANCIAL STATEMENTS.

AND AGAIN, THIS IS A VERY LARGE DOCUMENT, PROBABLY A GOOD PLACE TO START COUNCIL MEMBERS, AS YOU'RE GOING THROUGH THIS DOCUMENT, TO REVIEW AND FORMULATE QUESTIONS IS TO REALLY START AT THE TABLE OF CONTENTS.

AND THAT COULD STEER YOU TO SECTIONS OF THIS DOCUMENT WHERE YOU MAY WANT TO BEGIN.

AND IT IS BROKEN DOWN BETWEEN YOUR BASIC FINANCIAL STATEMENTS, WHICH INCLUDE THE STATEMENT OF NET POSITION AND THE STATEMENT OF ACTIVITIES, WHICH REPRESENT THE FULL ACCRUAL BASIS OF ACCOUNTING FOR THE CITY OF AMARILLO.

BEHIND THAT ARE YOUR FUND FINANCIAL STATEMENTS, YOUR WHICH INCLUDES GOVERNMENTAL FUNDS, WHICH ARE ACCOUNTED FOR ON A MODIFIED ACCRUAL BASIS OF ACCOUNTING, AS WELL AS YOUR ENTERPRISE FUNDS, WHICH ARE ON THE FULL ACCRUAL BASIS OF ACCOUNTING. THIS DOCUMENT ALSO INCLUDES COMPONENT UNITS OF THE CITY OF AMARILLO, SUCH AS THE AMARILLO HOSPITAL DISTRICT, THE AMARILLO ECONOMIC DEVELOPMENT CORPORATION, AND SO FORTH.

DUE TO ACCOUNTING STANDARDS AND PRINCIPLES AND GOVERNANCE STRUCTURE AND SO FORTH, IT HAS BEEN DETERMINED THAT THOSE COMPONENT UNITS SHOULD ARE PART OF THE REPORTING ENTITY OF THE CITY OF AMARILLO.

SO THOSE ARE INCLUDED IN HERE. AND CLIFTON LARSON ALLEN NOT ONLY AUDITED THE CITY OF AMARILLO. WE ALSO AUDITED THE COMPONENT UNITS AS WELL.

AND THERE IS A PAGE IN HERE THAT HAS A LISTING OF THE COMPONENT UNITS.

THOSE COMPONENT UNITS WERE AUDITED BY CLIFTON LARSON ALLEN WITH SEPARATE FINANCIAL STATEMENTS TO BE ISSUED. WITH THE EXCEPTION OF A COUPLE OF THOSE.

I'M TRYING TO GET TO THE ACTUAL PAGE OF THAT.

IF YOU COULD BEAR WITH ME, THE COMPONENT UNITS ACTUALLY BEGIN ON PAGE 42.

AND THERE WILL BE SEPARATELY ISSUED FINANCIAL STATEMENTS FOR THE AMARILLO HOSPITAL DISTRICT ECONOMIC DEVELOPMENT CORP. THE [INAUDIBLE] EVENT'S VENUE DISTRICT.

ONE THING THAT'S ON HERE IS THAT AMARILLO CONVENTION AND VISITORS BUREAU.

THERE WAS A CHANGE EFFECTIVE OCTOBER 1ST, 2024, WHERE THE CITY OF AMARILLO NO LONGER SERVES AS THE FISCAL AGENT FOR THAT ORGANIZATION.

THAT IS WHY YOU SEE BUREAUS IN THAT COLUMN. THE HOUSING FINANCE CORPORATION AND HEALTH FACILITIES CORPORATION TO SMALLER ENTITIES. THOSE WILL NOT HAVE SEPARATELY SUED AUDITED FINANCIAL STATEMENTS.

BUT THE LOCAL GOVERNMENT CORPORATION WILL ALSO HAVE A SET OF SEPARATELY ISSUED FINANCIAL STATEMENTS.

I JUST WANTED TO POINT OUT THAT BECAUSE THIS IS A COMPREHENSIVE DOCUMENT AND IT INCLUDES COMPONENT UNITS OF THE CITY OF AMARILLO IN ADDITION TO THE CITY ITSELF.

AND THEN THE NOTES TO THE FINANCIAL STATEMENTS THAT ACTUALLY BEGIN ON PAGE 45.

THERE. THESE NOTES PROVIDE MUCH MORE DETAIL OF CERTAIN OF THE LINE ITEMS WITHIN THE BASIC FINANCIAL

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ONE OF THOSE IS NOTE 3 YOUR DEPOSITS AND INVESTMENTS.

THAT BEGINS ON PAGE 63. AND THIS IS A DISCUSSION OF THE DEPOSITS AND INVESTMENTS AND CULMINATES ON PAGE 65 WITH A TABLE TO SHOW A SUMMARY OF INVESTMENT SECURITIES OF THE CITY OF SEPTEMBER 30TH, 2025. AND I WAS HAD A MEETING WITH A MAYOR STANLEY ACTUALLY PRIOR TO THIS MEETING.

AND ONE OF THE THINGS WE DISCUSSED IS HE HAD AN INVESTMENT PORTFOLIO LISTING AS OF SEPTEMBER 30TH, 2025, WHICH SHOWED A CERTAIN DOLLAR AMOUNT. AND THERE WAS A QUESTION FROM HIM, WHICH IS A VERY GOOD QUESTION ON HOW THAT STATEMENT CAN BE RECONCILED TO THE VARIOUS AMOUNTS THAT ARE IN THE ANNUAL COMPREHENSIVE FINANCIAL REPORT. THAT MAY BE A HOMEWORK ASSIGNMENT BETWEEN KATRINA AND HER GROUP AND CLIFTON LARSON ALLEN TO BRIDGE THAT GAP FOR YOU MAYOR STANLEY.

BUT IF YOU WOULD LIKE FOR US TO TAKE ON THAT ENDEAVOR, JUST LET US KNOW.

SO SCOTT, I APPRECIATE THAT. AND WE'LL JUST WE'LL PAUSE HERE FOR A QUICK STOP.

LET ME MAKE SURE YOU'RE. OKAY IT BRINGS YOU TO THE PLACE OF ACTUALS IT. IT PUTS THINGS IN DIFFERENT CATEGORIES.

IT HELPS YOU UNDERSTAND SOME THINGS. SO WHEN WE GET DIFFERENT YOU GUYS ARE FAMILIAR, YOU GET THE QUARTERLY INVESTMENT OR HOLDINGS REPORT.

THEY SEND YOU THAT EVERY QUARTER TO SHOW YOU THESE ARE ALL THE CDRS, THESE ARE THE FIDELITIES.

THIS IS YOUR CASH AND CASH EQUIVALENTS. YOU GUYS SHOULD BE REVIEWING THAT EVERY QUARTER TO KIND OF SEE THE FINANCIAL HEALTH OF THE CITY.

AND THAT'S WHERE THOSE MONIES ARE HELD. NOT ONLY THE MONIES THAT I THINK WE'RE BORROWING, BUT THEN THE MONIES THAT WE HAVE SET ASIDE FOR CASH TO GO AND DO CIP, RIGHT? JUMP IN ANYTIME. KATRINA. BUT IN THAT I WANTED TO MAKE SURE THAT, THAT I'M UNDERSTANDING THAT QUARTERLY INVESTMENT REPORT CORRECTLY SO THAT WE CAN GET THAT BROKEN DOWN. SO WE CAN SEE HERE'S HOW MUCH WE HAVE COMMITTED, HERE'S HOW MUCH WE HAVE RESTRICTED LIKE A BOND THAT'S RESTRICTED TO SEWER AND WATER.

AND THEN HERE'S HOW MUCH WE HAVE THAT'S UNRESTRICTED JUST IN CASH SO THAT WE COULD GET A SECONDARY LOOK, NOT JUST A BUDGET ONCE A YEAR, BUT A SECONDARY LOOK THAT MATCHES THE ACFR SO THAT AT THE END OF THE YEAR 25, WE KNOW HOW MUCH CASH DID WE HAVE THAT THAT WE NEEDED FOR RESERVES.

BUT THEN HOW MUCH CASH DID WE HAVE THAT EXCEEDED RESERVES THAT WE COULD APPLY TO CIP, AND THAT'S GOING TO BE AN IMPORTANT COMPONENT AS WE WORK THROUGH THE CIP CLOSEOUT PROJECTS, BECAUSE THEY SHOULD RECONCILE AS YOU CLOSE OUT THOSE PROJECTS, IF YOU DIDN'T SPEND THE MONEY, YOU'RE GOING TO SEE IT SITTING OVER THERE AND PERHAPS A CDR OR CERTIFICATE OF DEPOSIT, A FIDELITY.

MS. OWENS, DO YOU HAVE ANYTHING TO ADD TO THAT? I WILL SAY ON. I TOLD YOU LAST WEEK DURING THE AUDIT COMMITTEE THAT YOUR 9/30/25 PRESENTATION THAT WAS PRESENTED TO YOU EARLIER DID CHANGE FOR THE ACFR. THERE WAS SOME INTEREST THAT WAS IN ACCRUED INTEREST.

WE ORIGINALLY HAD IT ON THAT REPORT AT COST AND THE AUDITORS WANTED THAT AT MARKET.

SO WE INCREASED THAT REPORT BY $2 MILLION PLUS.

SO IT WILL TIE TO AN UPDATED QUARTERLY REPORT ONCE I GET TIME.

SO AND SO MAKE SURE THAT THAT WE'RE HEARING. RIGHT STATEMENT, AND WE JUST TOOK IT FROM ACCRUED INTEREST AND PUT IT UP INTO INVESTMENTS.

OKAY THAT'S A GREAT EXAMPLE. SO CLA MIGHT HAVE BROUGHT THAT TO YOU.

RIGHT. IN COMPARING THE TWO DIFFERENT BALANCES.

AND SO THEN YOU GUYS GO BACK AND YOU LOOK AND YOU GO, OH YEAH, THAT'S CORRECT.

BUT WE HAD IT IN THE WRONG BUCKET. RIGHT. AND SO YOU'VE NOW RECOGNIZED IT OVER IN THE IN THE RIGHT BUCKET.

RIGHT. AND WE WILL FOLLOW THAT PRACTICE GOING FORWARD.

THAT'S GREAT. NOW HOW DOES COUNCIL, YOU KNOW, TREAT THAT IN, IN LIKE WHEN YOU BRING THAT BACK TO COUNCIL?

[00:25:06]

AND SO IN YOUR INCOME SIDE, IT WAS ALREADY REPRESENTED AND REPORTED TO YOU.

OKAY, SO THE TOTAL REVENUES IS INCOME RECOGNIZED.

RIGHT WHAT? ANYTHING YOU WANT TO ADD TO ANY OF THAT? OR I'M GOING TO STEP BACK OUT OF THE WAY AND LET YOU KEEP RUNNING THROUGH THIS.

I WOULD JUST WANT TO ADD MAYOR STANLEY. IF, IF YOU WOULD STILL WANT TO SEE SOME TYPE OF RECONCILIATION BETWEEN THE INVESTMENT HOLDINGS REPORT, TO SEE HOW THAT REPORT TIES TO THE AMOUNTS THAT ARE PRESENTED IN THE ACFR, JUST LET US KNOW WHEN.

WE WILL WORK WITH KATRINA TO COME UP WITH A RECONCILIATION FOR YOU THAT IF YOU STILL DESIRE TO SEE THAT.

YES, SIR. I THINK THAT MS. OWENS HAS BEEN FAMILIAR WITH THIS REPORT AND I'VE REQUESTED THE BREAKDOWN.

SO AT ONE POINT WE HAD DEBT RESERVES AND WE HAD ITEMIZED THE DEBT RESERVES.

THE NEED OF THE AMOUNT OF MONEY WE HELD OFF TO THE SIDE IN ORDER TO MEET THOSE MINIMUM DEBT RESERVES.

IT WAS ROUGHLY $23.8 MILLION AT THAT TIME. WE NOW HAVE, I GUESS WHAT WOULD IT BE PAGE? I DON'T KNOW WHAT PAGE WOULD IT BE THERE SCOTT? THAT ITEMIZED THOSE DEBT RESERVES? IT SHOWS ROUGHLY FLIP OVER TO PAGE 68.

SO REVENUE BOND RESERVE WATER AND SEWER SYSTEM.

AM I CORRECT IN IN MY UNDERSTANDING THAT THE ONLY BOND THAT REQUIRES A DEBT RESERVE WOULD BE A WATER AND SEWER BOND NOW? WELL, I WILL ACTUALLY DEFER THAT QUESTION TO MS. OWENS. I'M GOING TO HAVE TO MAKE SURE, BECAUSE I'M JUST GOING TO HAVE TO DOUBLE CHECK TO MAKE SURE THAT THAT'S CORRECT.

OKAY, SO WE COULD DOUBLE CHECK THAT WITH STEVEN ADAMS. YES. I'M SURE. AND SO HE, HE WAS THE ONE THAT THAT HAD EDUCATED ME ON THAT.

I THINK THE LAWS HAD CHANGED A LITTLE BIT, BUT WE HAD RESTRICTED IN THAT REPORT.

SO YOUR QUARTERLY INVESTMENT REPORT HAD RESTRICTED AND IDENTIFIED $23.8 MILLION AT THAT POINT IN TIME AND SAID, THAT'S NOT MONEY THAT WE CAN UTILIZE AS A CITY TO GO AND FIX ANYTHING OR TAKE CARE OF ANYTHING.

WE HAVE TO HOLD THAT UNTIL THESE THESE BONDS ARE PAID OFF BECAUSE THAT'S THE LEGAL REQUIREMENT.

HE HAD COME BACK AND SAID, WELL, NO, THAT'S NOT TRUE.

IT'S ACTUALLY $4.3 MILLION. AND SO ON PAGE 68 RIGHT HERE.

IF YOU LOOK THERE, IT'LL COME DOWN AND I JUST WANT CLA'S CONFIRMATION THAT I'M READING THIS CORRECT REVENUE BOND RESERVE.

THAT'S HOW MUCH WE SHOULD HAVE THAT WE NEED TO RESTRICT AND NOT APPROPRIATE OUT OF THAT FUND.

CORRECT? THAT'S, THAT'S CORRECT IS KIND OF THE PARAGRAPH ABOVE THE TABLE.

I'M JUST READING FROM IT AS REQUIRED BY BOND INDENTURES.

AND THEN IT GOES INTO THAT LANGUAGE THERE. AND FOR THE WATER AND SEWER SYSTEM AS REQUIRED BY BOND INDENTURES, THERE'S A REVENUE BOND RESERVE OF $4,304,568 AT SEPTEMBER 30TH, 2025. SO WHAT I WOULD ASK MS. OWENS IF YOU WOULD, ON BEHALF OF COUNCIL, GET US A END OF YEAR 9/30/25 ITEMIZED INVESTMENT HOLDINGS REPORT. SO IF YOU LOOK BACK AT THAT REPORT, IT ROUGHLY HELD $585 MILLION IN IT. AND SO YOU'VE DONE A GOOD JOB OF GOING THROUGH AND YOU ITEMIZED.

WELL, THESE ARE THE BORROWED MONIES THAT ARE RESTRICTED. SO THEY'RE BONDED. YOU HAVE TO SPEND THEM ON THOSE PROJECTS.

AND THEN YOU'VE GOT MINIMUM RESERVES THAT YOU HAVE TO HAVE.

AND THEN WE HAD HAD A FEW OTHER THINGS IN THERE.

IF WE COULD HAVE CLA VALIDATE, VERIFY THAT WE'RE LOOKING AT ALL THAT CORRECT.

COUNCIL WOULD LIKE TO SEE THAT THAT QUARTERLY INVESTMENT REPORT IDENTIFY ALL CASH, CASH EQUIVALENTS THAT ARE UNRESTRICTED AT THE END OF THAT YEAR.

THAT WAY WE WOULD KNOW, ARE WE HOLDING MORE MONEY IN RESERVE THAN WHAT WE SHOULD BE? BECAUSE THAT REPRESENTS MORE PROJECTS WE COULD GO GET TO.

I UNDERSTAND AND IT'S TO BE WORKED. I JUST HADN'T HAD TIME TO GET TO IT.

I KNOW IT, I KNOW IT, AND I KNOW THIS WILL TAKE A LITTLE BIT MORE WORK.

AND SO LET'S TAKE IT ONE AT A TIME. BUT I WOULD LIKE FOR COUNCIL UNLESS, COUNCILMAN.

[00:30:05]

SO IF THEY ARE IN EXCESS, THOSE SHOULD BE MOVED AUTOMATICALLY, CORRECT? WELL, YOUR RESERVES VERSUS CASH. CASH IS. RIGHT WHEN WE COME BACK FOR CIP DISCUSSIONS, HAVE DISCUSSIONS OF WHAT YOU WOULD LIKE TO DO WITH THAT.

OKAY. BUT I GUESS WHAT I'M ASKING IS, ARE THOSE NOT AUTOMATICALLY MOVED ONCE THEY GO ABOVE THE MINIMUM RESERVE? IT JUST STAYS WHERE IT'S WHERE IT'S AT, IT JUST STAYS IN CASH.

IT JUST STAYS IN. UNTIL. IN THE FUND ONCE A YEAR. RIGHT. AND WE JUST TELL YOU WHAT AND THEN ONCE A YEAR YOU COME TO US AND SAY, HEY, RESERVES ARE $4.3 MILLION.

WE'VE GOT $5 MILLION IN HERE. WE'VE GOT $700,000.

RIGHT. WE NEED TO MOVE TO CIP. AND IT JUST STAYS THERE.

AND THEN WE START EXECUTING CAPITAL PROJECTS AND ALL OF THAT.

AND THEN IT GOES TO CASH AND YOU START SPENDING IT. OKAY, SO WHAT ARE YOU ASKING FOR? SO COUNCILMAN, LET ME LET ME MAKE SURE WE'RE EXPLAINING IT WELL.

YOU ASKED A REALLY INTELLIGENT QUESTION, BUT IT DOESN'T WORK THE WAY THAT WE HAVE TO WORK.

SO NOTHING CAN BE AUTOMATICALLY MOVED, RIGHT? NOTHING GETS MOVED UNLESS YOU APPROPRIATE IT.

AND THAT HAPPENS WITH YOUR VOTE. AND SO STAFF DOES A GOOD JOB OF IDENTIFYING THE FUNDING.

IDENTIFYING THE NEED, BRINGING THE NEED TO COUNCIL.

AND THEN THAT MONEY CAN'T MATCH UP TO THAT NEED WITHOUT YOUR APPROPRIATION.

RIGHT WELL, I SHOULDN'T SAY ONCE A YEAR. YOU CAN ONLY DO THAT ANNUALLY.

YOU CAN COME BACK TO IT AND AMEND IT AS MANY TIMES AS WE WOULD CALL A MEETING. BUT SO IN US IDENTIFYING EXCESS RESERVES, WHICH WE DID IN THE LAST COUNCIL MEETING, WE BROUGHT IN ROUGHLY $19 MILLION MORE THAN WE HAD ANTICIPATED.

AND SO YOU IDENTIFIED AFTER YOU NETTED OUT SOME OVERAGES, SOME COST OVERRUNS, $13.5 MILLION, $14 MILLION. THOSE MONIES DON'T AUTOMATICALLY ADJUST.

THEY DON'T AUTOMATICALLY MOVE. THERE'S NO SUCH THING AS A REBALANCING.

THERE IS AN APPROPRIATIONS, THOUGH, AND THAT'S THE STEP THAT I WANT TO MAKE SURE WE'RE DOING HERE.

IF WE DON'T KNOW THAT THE EXCESS RESERVE EXISTS, THEN WE CAN'T APPROPRIATE IT.

AND IT'S NOT BEING BALANCED AT THE END OF THE YEAR WITH A LOOK BACK.

IT'S ONLY BEING BALANCED AT THE END OF THE YEAR WITH THE BUDGET.

AM I SAYING THAT RIGHT, MRS. OWENS? I NEED MORE INFORMATION OF WHAT IT IS YOU'RE SAYING.

[LAUGHTER]. SURE. I THINK WHAT COUNCIL MEMBER TIPPS IS SAYING, IF I'M UNDERSTANDING, IS WE WILL, AS PART OF THE AUTOMATIC PROCESS, THE BUDGET WE WILL BRING BACK, WE WILL DO THE REBALANCING PROCESS AS PART OF THE BUDGET PROCESS. AND IF THERE IS INDEED EXCESS RESERVE IN ANY OF THE FUNDS THAT WILL BE BROUGHT BACK TO THE COUNCIL FOR APPROPRIATION IN THE NEXT FISCAL YEAR.

SO YEAH, THAT PROCESS IS PART OF OUR AUTOMATIC PROCESS.

IT'S NOT AN AUTOMATIC LIKE THERE'S A SOFTWARE THING.

RIGHT. BUT YEAH, I THINK WHAT YOU'RE SAYING IS THAT WE'VE ALREADY GOT A PROCESS ALREADY ESTABLISHED IN OUR, IN OUR CALENDAR YEAR THAT THIS SUMMER WE WILL REBALANCE FOLLOWING THIS AUDIT AND BRING BACK TO YOU ALL THE EXCESS FOR ANY ONE OF THOSE FUNDS TO BE IDENTIFIED OR APPROPRIATED FOR RESERVE FOR THE NEXT FISCAL YEAR.

AND WHAT I'M ASKING FOR, LET ME SIMPLIFY IT. I'M ASKING FOR A SIMPLE DOUBLE CHECK.

IT'S AN EASY RECONCILIATION OF ACCOUNTS. IT'S LIKE ME BRINGING YOU A REPORT ON YOUR JOB, BUT THEN ALSO SHOWING YOU YOUR BALANCE IN YOUR CHECKBOOK.

RIGHT? SO I MEAN, THOUGH, I HAVE THE REPORT HERE IN THE FORM OF THE BUDGET AND WILL, WE RAN THIS, WE RAN THAT. THIS RECONCILIATION PROCESS WORKS WITH THESE QUARTERLY INVESTMENTS BECAUSE THOSE HOLDINGS REPRESENT ALL THE MONIES HELD WITHIN THE COA.

RIGHT AT 9/30/25. SO IF YOU'RE HOLDING $585 MILLION AND YOU RUN EVERYTHING AND YOU LOOK BACK AND YOU GO, WELL, TECHNICALLY, WE SHOULD ONLY BE INCLUDING OUR RESERVES HOLDING $550 MILLION.

WELL, THEN YOU'VE IDENTIFIED $35 MILLION OF EXCESS RESERVES AND HOLDINGS.

NOW, HOW DO WE GET THERE? WELL, WE HAVE INTEREST EARNINGS THAT COME BACK SOMETIMES MORE BENEFICIAL THAN WHAT WE CALCULATED.

WE HAVE REVENUES THAT ARE OVER. OR WE GO TO MAYBE NEAL'S PROJECT OF THE CIP, THE WORK IN PROGRESS.

SO IF WE HAVE A PROJECT THAT WE CLOSED OUT BECAUSE WE COULDN'T GET A RIGHT-OF-WAY, COULDN'T GET AN EASEMENT, WELL, THAT MONEY WAS APPROPRIATED AND HELD OVER THERE IN THAT HOLDINGS REPORT, BUT THEN IT JUST FLOATS UNTIL IT COMES BACK TO YOU.

SO THIS GIVES US A GOOD CHECK AND BALANCE. AND LAST YEAR IT WAS CREATED FOR THE 9/30/24.

AND SO WE WILL UPDATE IT FOR 9/30/25 AND WE WILL GET IT TO YOU.

YES THANK YOU. AND I HAVE THE, THE REPORT THAT YOU HAVE THAT'S SEMI COMPLETE ON THE 9/30/25.

[00:35:04]

THAT'S GREAT. AND THEN YOU'LL RECONCILE THAT WITH THE ACFR AND CLA COULD REVIEW THAT.

YES WE CAN LEARN THROUGH THAT TOGETHER. ABSOLUTELY. THAT'S FANTASTIC. SO TO BE CLEAR.

YES. THIS IS ALREADY HAPPENING. ONCE A YEAR WE'RE TAKING THE EXCESS RESERVES.

YOU'RE COMING TO US SAYING THIS IS HOW MUCH WE HAVE.

WE'RE REAPPROPRIATING. YES.

YOU'RE ASKING FOR A SECOND LOOK ALONG THE WAY IN THE QUARTERLY REPORTS JUST TO SEE WHERE WE ARE IN THE QUARTER? WELL, LET ME LET ME DISAGREE. LET ME DISAGREE.

THIS IS NOT CURRENTLY HAPPENING. SO WHAT YOU'RE SAYING COUNCILMAN, IS THAT ONCE A YEAR WE GET A BUDGET AND WE HAVE AN ITEMIZED BUDGET AND WE TAKE ALL OF OUR REVENUES, LESS EXPENDITURES, WE IDENTIFY THE EXCESS OVER AND ABOVE THE MINIMUM RESERVES, AND WE APPROPRIATE THAT TO A CAPITAL PROJECT.

RIGHT WITH OUR MINIMUM RESERVES, BECAUSE THE FIRST TIME WE DID THAT WAS 9/30/24, AND WE IDENTIFIED SEVERAL OUTSTANDING BALANCES THAT WE'VE NEVER GONE BACK AND COMPLETED. AND THEN IN 9/30/25, WE HAVE THAT SAME LOOKBACK.

SO I'M ASKING IT TO BE DONE AS A DOUBLE CHECK.

IT'S NOT SOMETHING THAT WE ARE CURRENTLY FAMILIAR WITH.

NOW WE WILL HAVE TO ONLY DO THAT DOUBLE CHECK PIECE, THE RECONCILIATION PIECE.

IT CAN ONLY BE DONE ONCE A YEAR BECAUSE OF LIKE.

SURE NUMBERS. GREAT. WELL, I'M NOT ASKING FOR IT TO BE, LIKE MONTHLY OR ANYTHING LIKE THAT.

SURE YOU KNOW, SAYING IN A WAY THAT'S NOT EASY TO FOLLOW OR THAT YOU COULD MORE GREATLY CLARIFY? NO, I THINK. I THINK KATRINA AND CLA BOTH KNOW EXACTLY WHAT YOU'RE LOOKING FOR.

AND SHE CAN PUT THAT RECONCILIATION TOGETHER.

AND THEN CLA WILL LOOK AT THAT AND SEE IF WE AGREE THAT THAT ACTUALLY DOES IN FACT RECONCILE BACK TO THE ACFR. AND THEN THAT CAN BE PRESENTED TO YOU AND COUNCIL.

REAL GOOD. WELL, LET ME BACK UP HERE AND, AND HAND IT BACK OVER TO YOU, SCOTT, IF YOU WANT TO KEEP GOING.

ON THE OTHER AREAS. OKAY 7 CAPITAL ASSETS THAT BEGINS ON PAGE 70 OF YOUR ACFR.

AND THIS SHOWS THE CAPITAL ASSET ACTIVITY BEGINNING OF YEAR ADDITIONS, DELETIONS AND BALANCES AT THE END OF THE YEAR FOR THE MAJOR CAPITAL ASSET CATEGORIES, THAT BEING LAND, CAPITAL, RIGHT-OF-WAY, EASEMENTS, CAPITAL PROJECTS IN PROCESS OR CIP.

AND THEN THE ITEMS THAT ARE ACTUALLY BEING DEPRECIATED.

INFRASTRUCTURE, BUILDINGS, IMPROVEMENTS AND SO FORTH.

AND THEN THERE'S ACCUMULATED DEPRECIATION FOR THE ITEMS THAT ARE BEING DEPRECIATED.

AND THIS TABLE ACTUALLY GOES ON FOR TWO PAGES, AND IT'S BROKEN DOWN BETWEEN YOUR GOVERNMENTAL ACTIVITIES AS WELL AS YOUR BUSINESS TYPE ACTIVITIES WHICH COMPRISE YOUR ENTERPRISE FUNDS.

WATER AND SEWER AND DRAINAGE UTILITY AS WELL AS AIRPORT.

SO IT'S BROKEN DOWN BETWEEN THOSE FOUR PARTS OF THE CITY OF AMARILLO AND THE. JUST WANTED TO POINT OUT TO COUNCIL THAT WHEN YOU LOOK AT THE CIP CAPITAL PROJECTS IN PROCESS, A LOT OF TIMES I REFER TO THAT AS CONSTRUCTION IN PROGRESS.

WHAT THESE BALANCES ARE GOING TO REPRESENT IS FOR ONGOING PROJECTS AT THIS POINT IN TIME.

THAT IS THE AMOUNT OF EXPENDITURES THAT HAVE BEEN INCURRED ON THOSE ONGOING PROJECTS THAT HAVE NOT BEEN PLACED INTO SERVICE AND MOVED INTO THEIR VARIOUS LINE-ITEM CATEGORIES, SUCH AS INFRASTRUCTURE AND SO FORTH. THOSE ARE ONLY EXPENDITURES THAT HAVE BEEN INCURRED THAT HAVE NOT BEEN MOVED INTO THEIR RESPECTIVE

[00:40:05]

THIS ONLY REPRESENTS ACTUAL EXPENDITURES INCURRED THAT ARE SITTING IN A CONSTRUCTION IN PROGRESS.

I JUST WANT TO POINT THAT OUT TO CITY COUNCIL.

AS YOU'RE LOOKING THROUGH THIS DOCUMENT AND MAYBE HONING IN ON THIS NOTE 7 THAT BEGINS ON PAGE 70.

QUESTIONS COUNCIL, MAYOR STANLEY ON THIS ACTUAL NOTE TO THE FINANCIAL STATEMENTS? QUESTIONS COUNCIL? NO. SO LET'S, LET'S BREAK IT DOWN ONCE AGAIN, SPEAKING ACCOUNTING IS A LITTLE DIFFERENT.

SO IF YOU LOOK AT THE TABLE BALANCES OFF TO THE FAR RIGHT, THOSE ARE ONGOING PROJECTS.

CAN I SAY IT THAT WAY? YES ONGOING PROJECTS FOR WHICH. THAT HAVE BALANCES FOR WHICH EXPENDITURES HAVE BEEN INCURRED.

CAPITAL ASSET CATEGORY, SUCH AS INFRASTRUCTURE AND SO FORTH.

SO COUNCIL I WAS JUST GOING TO SAY SO. AND AGAIN, THAT DOES NOT REFLECT REMAINING BALANCES FOR ONGOING PROJECTS TO BE SPENT. THIS JUST REPRESENTS ACTUAL EXPENDITURES INCURRED TO DATE AS OF SEPTEMBER 30TH, 2025. SO COUNCIL, IF YOU'RE IF YOU'RE HEARING HIM SAY YOU'VE GOT PROJECTS THAT ARE CLOSED OUT.

THEY'VE BEEN DELETED, RIGHT? SO THOSE ARE YOUR CLOSED PROJECTS.

THAT MEANS THEY'RE MOVING THEM OVER TO CAPITAL SO THEY CAN DEPRECIATE THEM.

THEY'RE CAPITALIZED. RIGHT? BUT THEN YOU HAVE ONGOING WORK IN PROGRESS BALANCE.

THAT'S JUST THE AMOUNT THAT'S BEEN SPENT TO DATE AS OF THAT DATE, NOT EVEN TWO DAYS.

SO IT GETS A LITTLE MORE CONFUSING. IT DOESN'T REPRESENT THE AMOUNT BUDGETED OR ALLOCATED.

RIGHT? SO IF WE APPROPRIATED $1 MILLION FOR A PROJECT, PROJECT X AND YOU'D SPENT $100,000, THAT $100,000 IS GOING TO SHOW UP OVER HERE. IT'S AN ONGOING PROJECT.

YOU STILL HAVE $900,000 LEFT THERE. NOW, WHEN YOU CLOSE OUT THAT PROJECT, THIS IS THE TRACKING MECHANISM THAT WE ALL WANT AND NEED IN YOUR CIP WORK PRODUCT.

NEAL. SO LET'S SAY WE SPENT $700,000 ON THAT $1,000,000 AND WE CLOSED THE PROJECT OUT.

WE'VE NOW IDENTIFIED A $300 MILLION OR, I'M SORRY, A $300,000 NET SAVINGS.

THAT'S WHERE YOU CAN'T SEE THAT ON THIS REPORT.

IT'S NOT AS EASY AS JUST LOOKING AT IT AND GOING, OH, HERE'S WHAT I STARTED WITH.

HERE'S WHAT I'VE GOT LEFT. THESE ARE ACTUAL COSTS THAT ARE BACKED UP BY RECEIPTS, AND THEN THEY'VE BEEN TESTED.

SO CLA HAS GONE IN AND PULLED SEVERAL OF YOUR PROJECTS AND TESTED TO SEE.

AND I THINK EVEN SOME OF THOSE CAME BACK AS A JOURNAL ENTRY.

RIGHT? AND YOU GUYS HAD TO GO BACK AND GET MORE INVOICES.

SURE. FOR THEM TO, TO BE SATISFIED. SO IN WHAT NEAL, IS DOING, GENTLEMEN, IT'S DIFFERENT THAN WHAT SCOTT DID HERE.

AND SO THIS IS REALLY GOOD FOR US TO BE ABLE TO SEE WHAT WE'VE CLOSED OUT EVERY YEAR, BUT WE'RE GOING TO HAVE TO GET THE CIP WORK PRODUCT LIST TO COMPARE THOSE PROJECTS TO SEE WHICH ONES NEAL CAN SAY THIS IS A CLOSED PROJECT.

HERE'S HOW MUCH MONEY IS REMAINING THAT WAS APPROPRIATED BY, SAY, THIS COUNCIL OR A PREVIOUS COUNCIL.

THOSE ARE THE AMOUNTS OF MONEY THAT SHOULD BE COMING BACK TO THE COUNCIL IN THAT THAT RECONCILIATION.

THOSE ARE THE MONIES THAT ARE HELD IN THAT QUARTERLY INVESTMENT REPORT.

SO I THINK THAT THIS IS A REALLY GOOD WAY FOR US TO SEE THIS.

SO EVERYBODY UNDERSTANDS THE, THE TERMINOLOGY OF DELETION VERSUS WORK IN PROGRESS, I THINK.

OKAY, SCOTT, THANK YOU. AND THANK YOU MAYOR. AND ONE THING I DID WANT TO POINT OUT THAT MAY BE BENEFICIAL WHEN LOOKING AT NOTE 7 IN THE TABLES ON PAGES 70 AND 71, THERE IS ALSO ANOTHER TABLE THAT'S ON PAGE 100 OF THIS DOCUMENT. THAT SHOWS IT'S A TABLE AT THE VERY TOP OF THAT FIVE COLUMNS HERE. PROJECT, AUTHORIZATIONS, EXPECTED OUTSIDE FUNDING SOURCES,

[00:45:02]

THIS DOESN'T TIE TO THIS SCHEDULE. THAT'S ON PAGE 70 IN ANY FORM OR FASHION.

BUT I BELIEVE NEAL. AND NEAL, YOU CAN CORRECT ME IF I'M WRONG.

THERE SHOULD BE A DETAIL THAT YOU MAY HAVE OF THE CITY'S REMAINING COMMITTED THAT WAS USED TO PREPARE THIS TABLE THAT'S ON PAGE 100 THAT MAY BE OF INTEREST TO CITY COUNCIL.

WE DO HAVE THE COMMITMENT DETAIL AND WE CAN PROVIDE THAT IF NEEDED.

AND I GUESS AFTER THAT NOTE, I'M JUST KIND OF POINTING OUT SIGNIFICANT NOTES TO THE FINANCIALS THAT HAVE SOME VERY GOOD DETAILED INFORMATION IN THOSE.

I'M TRYING TO GET TO THE NEXT NOTE THAT I WANTED TO POINT OUT.

THAT ACTUALLY IS NOTE 13 IT'S A VERY LENGTHY NOTE. THAT NOTE BEGINS ON PAGE 103.

AND THIS IS A VERY DETAILED DISCUSSION AND PRESENTATION OF THE CITY'S LONG-TERM OBLIGATIONS.

I JUST WANTED TO POINT THAT INFORMATION OUT TO CITY COUNCIL THAT THAT'S WHERE YOU CAN FIND THE LONG-TERM OBLIGATION OR DEBT OF THE CITY. THAT NOTE ACTUALLY, JUST KIND OF THUMBING THROUGH THE PRINTED COPY I HAVE HERE.

THAT NOTE ACTUALLY. GOES ON FROM PAGE 103 THROUGH PAGE 122. IT'S A VERY DETAILED NOTE OF THE CITY OF AMARILLO'S LONG-TERM OBLIGATIONS. I JUST WANTED TO POINT THAT OUT TO CITY COUNCIL.

QUESTIONS COUNCIL. SO DEBT SCHEDULE IS ON PAGE 120.

WOULD THAT BE THE SUMMARY THAT WE WOULD LOOK AT FOR THE TOTAL DEBT SCHEDULE OF THE CITY? I WOULD DO 122. 122. YES. OKAY. IF YOU'RE TAKING NOTES.

QUESTIONS ON THE DEBT SCHEDULE, GENTLEMEN? NO, SCOTT, I WOULD JUST ASK YOU, WHY DO YOU WHY ARE YOU MAKING A.

WHY ARE YOU POINTING THIS OUT? IS IT WAS THERE A A FINDING OR ANYTHING IN HERE? OR ARE YOU JUST POINTING THIS OUT TO JUST SAY, I JUST WANTED TO POINT THAT OUT. IS THAT SHOULD BE VERY USEFUL OR BENEFICIAL INFORMATION FOR A CITY COUNCIL TO LOOK AT AS THEY ARE REVIEWING THIS DOCUMENT.

THAT WAS THE ONLY REASON I POINTED OUT IT'S A SIGNIFICANT NOTE TO THE FINANCIAL STATEMENTS.

AND I'D ALSO LIKE TO ADD TO THAT. SO YOUR INVESTMENTS, YOUR FIXED ASSETS, YOUR DEBT, YOUR CASH ARE ALL HIGH-RISK AREAS IN EVERY AUDIT.

AND SO THEY'RE GOING TO BE DISCUSSED AT ANY AUDIT COMMITTEE, ANY PRESENTATION.

GREAT, THANK YOU. AND THOSE REALLY ARE THE MAIN ITEMS IN YOUR BASIC FINANCIAL STATEMENTS. AND THEN BEGINNING ON PAGE 156, YOU GET INTO REQUIRED SUPPLEMENTARY INFORMATION. AND THEN STARTING IN SUPPLEMENTARY INFORMATION.

THAT JUST GIVES A LOT MORE DETAIL OF SOME OF THE AMOUNTS THAT ARE IN THE BASIC FINANCIAL STATEMENTS.

I REALLY DID NOT WANT TO SPEND TIME ON THOSE.

I JUST WANTED TO POINT OUT WHERE THOSE CAN BE FOUND.

SO LET ME, LET ME ASK, IS THIS A GOOD SUMMARY OF ACTUALS? IS THIS WHEN WE WERE GOING THROUGH ACTUALS THIS IS GOING TO BE A REALLY GOOD ONE RIGHT? YES. IT ABSOLUTELY IS.

WE'D BE ABLE TO LOOK AT DIFFERENT DEPARTMENTS AND BREAK DOWN OR AT LEAST FUNDS.

[00:50:04]

QUESTIONS GUYS? OR WE'LL KEEP MOVING. AND THEN ONE FINAL THING I DID WANT TO POINT OUT IT'S NOT PART OF THIS DOCUMENT THAT IS. BEING DISCUSSED TODAY.

THERE IS A SECOND PART OF THE AUDIT OF THE CITY OF AMARILLO.

IT IS COMMONLY REFERRED TO AS YOUR SINGLE AUDIT, OR AN AUDIT OF YOUR FEDERAL AND STATE GRANT PROGRAMS THAT ACTUALLY IS ISSUED IN A SEPARATE DOCUMENT, AND THE SINGLE AUDIT IS ONGOING AS WE SPEAK. OKAY. IT IS NOT IT'S NOT TO THE POINT WHERE THERE IS A DRAFT DOCUMENT, SUCH AS THE DRAFT OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT, AND THAT DOCUMENT IS ALWAYS PRESENTED SEPARATE FROM THE ACFR JUST WANT TO GIVE CITY COUNCIL A STATUS UPDATE ON WHERE THE SINGLE AUDIT STANDS.

OKAY. REALLY GOOD. QUICK QUESTION BACK ON 158, JUST SO I CAN MAKE SURE I'M SEEING THIS RIGHT.

IF WE JUST LOOK AT ON 158, IF YOU GO DOWN TO EXPENDITURES ON POLICE PROTECTION, WE LOOK AT AN ORIGINAL AMOUNT OF $65 MILLION.

THEN WE GO TO A FINAL AMOUNT OF $66,000,000. THOSE ARE OUR BUDGETED.

THEN WHEN YOU COME OVER TO YOUR ACTUAL AMOUNT OF $71 MILLION, THEN IT KICKS IT OVER TO AN ACTUAL ON BUDGETARY BASIS.

WHAT IS THE DIFFERENCE ON THOSE TWO? ONE SAYS $71 MILLION, THEN ONE SAYS $71,100,000.

I'M GOING TO HAVE TO GO REVIEW THAT TABLE JUST TO MAKE SURE.

OKAY. WELL, NOT TO DELAY TIME HERE THEN, IF I JUST HAD ANY SPECIFIC QUESTIONS IS GOING THROUGH IT.

IT OKAY IF I REACH OUT TO YOU, MS. KATRINA? YOU'RE ALL YOURS. YOU'RE STILL DRIVING. WELL, THOSE ACTUALLY ARE THE MAIN HIGHLIGHTS THAT I WANTED TO POINT OUT IN THE ACFR AT THE VERY END OF THIS DOCUMENT, THERE ARE STATISTICAL TABLES, A LOT OF VERY GOOD INFORMATION IN THERE, BUT I DID WANT TO POINT OUT THAT THE STATISTICAL TABLES ARE NOT AUDITED IN, THEY'RE CLEARLY MARKED AT THE TOP OF THE HEADING OF EACH OF THOSE PAGES AS UNAUDITED.

AND I WANT TO ADD BEGINS ON PAGE 287 OF THIS DOCUMENT. I WANT TO ADD THAT THAT IS STANDARD FOR EVERY AUDIT THAT THE STATS ARE REVIEWED, BUT NOT AUDITED BY AN AUDIT FIRM. THAT IS CORRECT.

THANK YOU, KATRINA. UNFAMILIAR WITH THAT. SO STATS, YOUR STATISTICS ARE WHAT? IT COULD BE ANYTHING. IT COULD TELL YOU HOW MANY WATER PIPES, SMALL WATER CUSTOMERS, LARGE WATER CUSTOMERS CAN TELL YOU AVERAGE OF HOMES AVERAGE PROPERTY TAXES. IT'S HISTORICAL DATA. IT JUST REALLY VARIES IN TOPICS, BUT IT'S FANTASTIC INFORMATION.

DEMOGRAPHIC INFO? YES AND MAYOR STANLEY, SINCE THE CITY OF AMARILLO ANNUALLY SUBMITS THIS DOCUMENT TO THE GFOA, THE GOVERNMENT FINANCE OFFICERS ASSOCIATION, FOR HOPEFUL RECEIPT OF THEIR CERTIFICATE OF EXCELLENCE IN FINANCIAL REPORTING. THE STATISTICAL SECTION OF AN ACFR IS A REQUIRED PART OF THE ACFR. SO IN SUBMITTING THIS DOCUMENT TO THE GFOA, THAT IS A REQUIRED SECTION OF THIS DOCUMENT.

OKAY, I UNDERSTAND THAT. COUNCIL ANY QUESTIONS ON SCOTT'S OVERVIEW? NOPE? ALL GOOD? COUNCILMAN SIMPSON YOU OKAY FOR A LITTLE BIT OR YOU NEED TO? WELL I'VE GOT ABOUT THREE MINUTES BEFORE I NEED TO LEAVE, BUT I DO HAVE A COUPLE OF QUESTIONS.

YES, SIR.

[00:55:02]

DID YOU FIND ANYTHING THAT CONCERNS YOU? CONCERNING AS, AS FAR AS I, I'D SAY THE ANSWER TO THAT IS NO. THE, THE ONLY THING CONCERNING AND IT'S NOT REALLY A CONCERN WAS JUST AS THE CITY OF AMARILLO FINANCE DEPARTMENT WORKED THROUGH USING THIS NEW ERP SYSTEM OR SOFTWARE SYSTEM AND GETTING TO LEARN THAT BETTER.

AND AS KATRINA SAID, IT'S A GREAT SYSTEM, BUT THERE IS A LOT OF LEARNING INVOLVED IN UNDERSTANDING THAT SYSTEM AND KNOWING WHAT THAT SYSTEM IS CAPABLE OF DOING.

IT'S NOTHING OF CONCERN. I JUST WANTED TO POINT THAT OUT AGAIN.

THAT BRAND NEW SYSTEM AND LEARNING CURVE, WHICH AGAIN, IN LARGE PART LED TO THIS DOCUMENT BEING IN DRAFT FORM RIGHT NOW INSTEAD OF THE FINAL VERSION.

OKAY. OTHER, OTHER THAN THAT, THERE IS NOTHING CONCERNING.

THAT OKAY. AS IT STANDS NOW, IS THIS A CLEAN AUDIT WITH NO MATERIAL ISSUES? YES. WE WILL RENDER AN UNMODIFIED OPINION OR A CLEAN OPINION THAT THESE FINANCIAL STATEMENTS ARE MATERIALLY CORRECT. I THINK WE MAY POTENTIALLY, WE HAVEN'T GOT THAT DOCUMENT DRAFTED UP YET, BUT INCLUDE A WRITTEN COMMENT ABOUT A TIMELY AND ACCURATE RECONCILIATION IN REPORTING OF CAPITAL ASSETS, WHICH INCLUDES CONSTRUCTION AND PROGRESS.

OKAY. AS, AS A RECOMMENDATION TO THE CITY OF AMARILLO.

WERE THERE ANY DISAGREEMENTS WITH MANAGEMENT IN THE REPORT? THERE WERE NOT. WERE THERE ANY SIGNIFICANT ADJUSTMENTS THAT YOU HAD TO MAKE IN THE NUMBERS? WELL, I GUESS ADJUSTMENTS WERE MADE AS WE WENT THROUGH THE AUDIT AND KATRINA MENTIONED ONE.

BUT AS WE WORK TOGETHER THROUGH THE AUDIT AND SOME THINGS JUST HAD TO BE RECLASSIFIED OR REGROUPED, BUT NO SIGNIFICANT AUDIT ADJUSTMENTS THAT WE FOUND.

OKAY NO FRAUD OR IRREGULARITIES THAT WE BECAME AWARE OF.

THAT DOES NOT MEAN SOME OF THOSE COULD EXIST THAT WEREN'T DETECTED BY US, BUT THERE WERE NONE THAT WERE BROUGHT TO OUR ATTENTION NOR DETECTED BY CLA. AND IF YOU WERE SITTING IN OUR SEAT, IS THERE ANYTHING THAT WE NEED TO DIG INTO FURTHER? NO, I BELIEVE JUST THE LEVEL OF DETAIL THAT I'VE, I'VE SEEN TODAY AT THIS MEETING AND WITH THE MEETINGS WITH MAYOR STANLEY AND THE AUDIT COMMITTEE.

JUST COMMEND YOU ALL FOR THE LEVEL OF DETAIL THAT YOU ALL AND REVIEW THAT YOU PUT INTO CITIES OF FINANCIAL REPORTS AND SO FORTH.

AND IT'S VERY COMMENDABLE. SO JUST TO BE CLEAR, MAKE SURE NO FINDINGS RED FLAGS, NOTHING THAT SHOULD CONCERN US FROM A FINANCIAL INTEGRITY STANDPOINT? THAT IS CORRECT. OKAY, THANK YOU.

COUNCILMAN SIMPSON YOU GOT ANYTHING ELSE? MAN, WE GREATLY APPRECIATE YOU HANGING OUT I PUT A CAVEAT? THERE'S NO FINDINGS ON THE FINANCIAL.

WE DO HAVE THREE FINDINGS ON SINGLE AUDIT THAT WILL BE COMING OUT THAT WE KNOW OF, BECAUSE THAT'S STILL IN PROCESS.

THOSE ARE ALL PROCESS FINDINGS. YES. THERE ARE NOT ANY MONETARY FINDINGS INVOLVED IN THAT.

THANK YOU. YES. AND THANK YOU FOR BRINGING THAT UP, KATRINA.

AND AGAIN, THAT IS SEPARATE AND APART FROM THE FINANCIAL STATEMENT AUDIT.

[01:00:07]

THAT'S A GOOD POINT. YES SO THANK YOU ON THAT.

AND I NEED TO REVISIT. THANK YOU COUNCILMAN SIMPSON.

YOU HAD SAID A LETTER THAT WOULD INCLUDE EITHER A RECOMMENDATION OR AN OBSERVATION.

GIVE ME THE TERMINOLOGY AGAIN ON THAT. WELL, IT WILL BE IT COULD POSSIBLY BE JUST A VERBAL DISCUSSION ON A MORE TIMELY AND ACCURATE RECONCILIATION OF CAPITAL ASSETS AND CONSTRUCTION IN PROGRESS THAT MAY BE BENEFICIAL TO CITY COUNCIL MEMBERS IF THEY DESIRE THAT TYPE OF INFORMATION.

AND IT'S MY UNDERSTANDING THAT SIGNIFICANT CHANGES IN THAT PROCESS HAVE ALREADY BEEN IMPLEMENTED AND MR. PATH, IF YOU WANT TO EXPAND ON THAT AND MAYBE TALK ABOUT THE CHANGES THAT HAVE ALREADY CURRENTLY BEEN IMPLEMENTED IN REGARDS TO CAPITAL ASSETS AND CONSTRUCTION PROGRESS THAT MAY BE BENEFICIAL FOR OUR CITY COUNCIL.

I'D BE HAPPY TO YES. SCOTT AND I HAD A CHANCE TO DISCUSS THIS HERE.

IT WAS IT WAS ABOUT A WEEK OR SO AGO. AND YES, ONE OF THE THINGS THAT WE'VE IMPLEMENTED OVER THE LAST SEVERAL MONTHS IS OUR CIP COMMITTEE. AND SO WE'RE REALLY ENCOURAGING STRONGER, MORE TIMELY COMMUNICATION, WORKING THROUGH OUR CAPITAL LIST OF PROJECTS, LOOKING AT WORKING THROUGH THE HISTORY OF THOSE IDENTIFYING ONES THAT HAVE BEEN COMPLETED, WE CAN CLOSE OUT, BRING BACK TO YOU ALL FUNDS WORKING BACKWARDS AS BEST WE CAN.

SO YES, THAT'S IN PROGRESS. AND SO WE DO HOPE THAT BY THIS DEFINITELY THIS TIME NEXT YEAR, IF NOT, HOPEFULLY WAY SOONER THAN THAT, WE'LL HAVE A PROCESS TO WHERE THIS RECOMMENDATION WILL NO LONGER BE NECESSARY NEXT YEAR.

AND SO BECAUSE WE, OUR GOAL IS TO BE ABLE TO BRING TO THE COUNCIL MORE TIMELY INFORMATION.

I KNOW, LIKE EVEN TALKING TO DONNY AND JENNY, ONE OF THE TASKS I HAVE FOR THEM IS WHEN THE COUNCIL GIVES A CIP EACH YEAR WE GET THEM SPENT. PART OF THE PROBLEM WE'VE HAD IN YEARS PAST WAS THE CIP LIST WOULD ACCRUE AND ACCRUE AND ACCRUE.

AND SO AS COUNCILS CHANGE, AS PRIORITIES CHANGE.

COUNCILS WOULD DIRECT FUNDS MOVE SOMEWHERE, STAFF DIRECT FUNDS MOVE SOMEWHERE.

AND SO NOW WITH CURRENT COUNCIL DIRECTION, WITH MY DIRECTION, WE'RE CLEANING IT ALL UP.

IT'S MUCH MORE STREAMLINED, MUCH MORE, MUCH MORE DIRECT.

AND SO THAT'S JUST AN ONGOING PROCESS. IT'S A, AS YOU ALL KNOW, WE GOT LOTS OF OTHER PRIMARY JOBS.

AND SO THIS IS ONE OF THE THINGS THAT THE COMMITTEE HAS BEEN WORKING ON AS, AS A FOCUS, BUT AT THE SAME TIME AS TIME ALLOWS.

YEAH, THAT'S DEFINITELY WELL IN MOTION. AND I KNOW, TALK TO SCOTT ABOUT THIS AND WE FEEL GOOD ABOUT THE DIRECTION WE'RE TAKING THAT, THAT YOU WILL, AGAIN, I DON'T HAVE A TIME FRAME, TIMELINE FOR YOU, FOR YOU JUST YET, BUT WE HOPE TO BRING TO YOU ALL A MUCH MORE ROBUST PROCESS OF INFORMATION ABOUT CIPS AND THE LIST AND SO FORTH.

SO. THANK YOU, MR. CITY MANAGER. AND I THINK JUST TO REITERATE, MAKE SURE WE'RE, I THINK WE'RE SAYING THE EXACT SAME THING SCOTT.

YOU'RE SAYING THAT YOU'RE GOING TO PUT IT IN YOUR LETTER FORM.

AND IT'LL COME FROM CLA THAT WE NEEDED TO HAVE DONE THESE THINGS IN A MORE TIMELY AND ACCURATE FASHION.

SO WHAT WE'VE DONE NOW IS MR. HOOPER HAS CHANGED LOTS OF PROTOCOLS.

AND MOVING FORWARD, WE HAVE A MUCH GREATER HANDLE ON HOW WE'RE DOING THIS.

BUT NEAL, WHO YOU'VE WORKED CLOSELY WITH, I BELIEVE YOU KNOW THAT THAT WORK IN PROGRESS AND THOSE CLOSE CIP REPORTING FORM THAT WORK PRODUCT IS FINISHED AND COMPLETE. IS THAT CORRECT, SIR? OKAY. SO SCOTT, I THINK IF WITH YOUR RECOMMENDATION AND WHAT WE'VE ALREADY DONE, WE'LL BE ABLE TO GET THAT CLOSED OUT WORK PRODUCT FROM NEAL. AND THEN IF COUNCIL HAS ANY FURTHER NEED, WHERE SOMETHING DOESN'T MATCH WHAT YOU'VE AUDITED, THEN YOU WOULD BE ABLE TO SEE SPECIFICALLY AND HELP US WALK THROUGH THAT IF WE WEREN'T INTERPRETING IT CORRECTLY.

AND SO COUNCIL I WOULD JUST. YEAH. I WOULD JUST SAY ON THE CIPS, WE'VE ASKED FOR IT AS A BODY.

STAFF IS STILL COMPLETING THIS. THEY NEEDED TO GET THROUGH THE AUDIT.

WE SHOULD EXPECT IT WITHIN A WEEK TO TWO WEEKS.

IS THAT CORRECT? YOU'RE GOING TO GET THE CONSTRUCTION IN PROGRESS OR CAPITAL PROJECTS WORK IN PROGRESS.

HOWEVER YOU WANT TO SHOW IT. IT'LL SHOW EVERY PROJECT NUMBER.

IT'LL GIVE YOU A NAME AND A DESCRIPTION LOCATION.

IT'LL GIVE YOU AN APPROPRIATE AMOUNT THAT WAS ALLOCATED BY COUNCIL.

[01:05:03]

IT'LL SHOW YOU IF IT'S OVER BUDGET NEALS FORM RUNS THAT AS A TOTAL.

SO AT THE BOTTOM OF ALL THAT YOU CAN SEE, DO YOU AS COUNCIL HAVE ANY MONIES REMAINING THAT NEED TO BE APPROPRIATED TO FUTURE PROJECTS, OR DID ALL THE PROJECTS GET COMPLETED THAT WE SAID WE WERE GOING TO DO? YOU'RE GOING TO SEE SOME PROJECTS THAT NO LONGER HAVE A COST BENEFIT ANALYSIS.

SO THE PROJECT WAS, LET'S SAY, IDENTIFIED IN 2020 AND THE PROJECT COST WAS HALF OR A FOURTH OF WHAT IT WOULD COST US TODAY.

AND SO THOSE MONIES THAT WERE APPROPRIATED FOR THAT NEED TO COME BACK.

YOU'VE HEARD STAFF SAY THAT SEVERAL TIMES. THEY NEED TO BRING THAT BACK TO COUNCIL, SO THAT YOU CAN APPROPRIATE THAT IN THE RIGHT WAY TO GO TO THE NEXT PROJECT.

NOW, THE ONLY DISCREPANCY THERE IS SOMEWHERE ALONG THE WAY, STAFF HAD DIRECTED SOME OF THOSE MONIES INADVERTENTLY TO GO TO OTHER PROJECTS.

SO THERE ARE TRANSFERS. AND I JUST WANT TO ASK IN THOSE TRANSFERS, THOSE HAVE BEEN IDENTIFIED AND YOU GUYS HAVE TRACKED THEM AND CLA SEEN THEM, RIGHT? I THINK THAT'S. DON IF YOU CAN SPEAK TO THAT.

I THINK THAT'S STILL IN PROGRESS BEING IDENTIFIED I BELIEVE.

STILL IN PROGRESS. I MEAN, WE'RE IDENTIFYING THE TRANSFERS THAT WE WOULD HAVE NOW. WE HAVEN'T GONE BACK TO LIKE 24, 23, 22 AND LOOKED AT THOSE IN DETAIL BECAUSE THAT WAS AN ACCEPTED PRACTICE.

OKAY. SO THE ACCEPTED PRACTICE BACK IN 21, LET'S SAY WAS IF PROJECT X WAS AWARDED $1 MILLION FOR AN APPROPRIATIONS.

AND THEN THE PROJECT DIDN'T GO FOR WHATEVER REASON.

LET'S SAY IT'S A RIGHT-OF-WAY. COULDN'T GET IT. STAFF WOULD GO AND, AND UTILIZE THAT MILLION DOLLARS ON A DIFFERENT PROJECT WITHOUT BRINGING IT BACK TO COUNCIL? ON A DIFFERENT PROJECT THAT HAD ALREADY PROBABLY BEEN BROUGHT TO COUNCIL ON A CIP LIST THAT WAS APPROVED BUT DIDN'T HAVE ENOUGH FUNDING IN THAT PROJECT TO COMPLETE IT.

SO STAFF PROBABLY TOLD COUNCIL WHERE THE MONEY WAS COMING FROM IN THE FORM OF A YOUR MINUTES AND IT WOULD HAVE BEEN VOTED ON BY COUNCIL WHEN THEY AWARDED THE PROJECT. SURE. YEAH. SO THOSE MONIES CAN BE TRACKED.

THEY WOULD. HAVE BEEN IDENTIFIED SOMEWHERE IN THERE SO.

AND EVEN AT THE END OF THE DAY, WE STILL HAVE ALL THE APPROPRIATED AMOUNTS AND ALL OF THE EXPENDITURES RECONCILED.

SO EVEN IF WE DIDN'T KNOW EXACTLY WHERE THE MONEY HAD BEEN TRANSFERRED, YOU WOULD KNOW IF YOU HAD ANY MONIES REMAINING.

AND I THINK THAT'S THE ONLY THING WE'RE REPRESENTING HERE AS COUNCIL IS, WE HAVE AN INTEREST IN GETTING EVERY DOLLAR THAT WE'VE BEEN ENTRUSTED WITH INTO THE COMMUNITY AND MAKE SURE IT'S NOT SITTING ON THE SIDELINE.

KEY TO THAT IS IDENTIFYING THOSE MONIES SO THAT YOU GUYS CAN CONTINUE TO BRING THINGS ON THE AGENDA THAT WE CAN, WE CAN PUSH FORWARD. AND I KNOW YOU ALL ARE DOING A GOOD JOB OF THAT.

SO I LOOK FORWARD TO GETTING THE CIP WORK PRODUCT FROM NEAL.

AND THEN CLA'S ENGAGEMENT IN IT AS WELL. THAT'S, THAT'S ALL I HAVE ON THAT.

SCOTT DID YOU HAVE ANYTHING FURTHER ON CIP? NO, THAT IS EVERYTHING I WANTED TO DISCUSS WITH THE CITY COUNCIL ON THE CIP AND REALLY EVERYTHING I WANTED TO DISCUSS WITH CITY COUNCIL IS IN REGARDS TO THE AUDIT ITSELF, SOME OF THE KEY HIGHLIGHTS WITHIN THE ACFR ITSELF I HAVE PRESENTED ALREADY.

AND AGAIN, IF ANY QUESTIONS COME UP, COME UP DURING THE DETAILED REVIEW BY CITY COUNCIL OF THIS DRAFT DOCUMENT.

AGAIN, I INVITE YOU ALL TO, IF YOU DEEM IT NECESSARY, PLEASE CONTACT ME AT ANY TIME.

I'D BE HAPPY TO ANSWER THE QUESTIONS OR LOOK INTO THE QUESTIONS TO GET AN ANSWER IN THE FUTURE ON THOSE QUESTIONS. REALLY GOOD.

I KNOW I JUST HAVE TWO QUESTIONS LEFT ON MY LIST, BUT I WANT TO WAIT AND SEE IF ANYBODY HAS ANYTHING ELSE BEFORE WE MOVE ON.

SO I HEARD YOU MENTION BY NAME THE HOUSING CORPORATION AND THE HEALTH FACILITIES CORPORATION.

SO I THINK THOSE HAVE THE SAME ACRONYM, AHFC IN YOUR REPORT THAT YOU GAVE, IT SHOWED BORROWED MONIES AND AN ORIGINAL ISSUED AMOUNT. WHAT I WANT TO MAKE SURE OF IS THAT THE COA DOESN'T HAVE ANY OBLIGATION TO PAY THOSE MONIES, OR THAT THEY'VE ALREADY BEEN PAID. SO CAN, MS. KATRINA CAN YOU SPEAK TO THAT ARE THOSE? $120,000 SOME ODD. THEY'RE NOT MATERIAL. AND STEVE OR SORRY, SCOTT.

IT'S THE CONDUIT FOOTNOTE. I DON'T KNOW WHICH ONE THAT IS.

CAN YOU DESCRIBE IT?

[01:10:08]

I CAN'T REMEMBER OFF THE TOP OF MY HEAD THE DETAILS ON THE HEALTH FACILITIES, BUT THE $10 MILLION IS ALREADY PAID AND DONE.

SO DECADES AGO. DECADES AGO WAS STAFFED BY THE COUNCIL. THEY WERE NOMINATED.

THEY WERE ACCOUNTABLE. BUT THAT HAS ALL SINCE GONE.

I NOTICED IT POPPED UP BECAUSE IT'S REQUIRED TO BE LISTED.

EXISTENCE. IT IS THE HEALTH FACILITIES WE MEET ONCE A YEAR IN DECEMBER AND.

IT'S NOT A VERY LARGE COMPONENT UNIT. I JUST WANTED TO ALLEVIATE A CONCERN AND NOT HAVE SOMETHING ELSE TO LOOK AT.

AND SO THANK YOU FOR THAT. SURE AND THEN WE'LL MOVE FORWARD WITH GETTING THIS THING FILED.

I KNOW WE HAD HAD A DISCREPANCY ON OUR SEWER AND WATER NET STARTING POSITION.

SO I WANTED TO GET CLA WHILE THEY'RE HERE TO TELL ME, CAN YOU TAKE ME TO THAT SEWER AND WATER FUND, SIR, AND SHOW ME WHAT PAGE THAT'S ON? THE.

I'M TRYING TO. IT'S 219. OKAY. NOW REMEMBER, MAYOR THAT YOU'RE LOOKING AT THE BUDGETARY CASH FLOWS ON THE RESERVES OF WATER SEWER VERSUS ACTUALS ON THIS.

RIGHT. SO WHAT YOU'RE WHAT YOU'RE TELLING ME TO MAKE SURE EVERYBODY'S HEARING IT CLEARLY.

I WAS LOOKING AT BUDGET NUMBERS. ABSOLUTELY WHETHER WE REVENUE THE $110,000,000 OR NOT, THAT WAS BUDGETARY.

IT WAS A IT WAS A GOAL, RIGHT? WE COULD HAVE GOTTEN MORE OR LESS.

BUT WHAT YOU'RE GIVING ME RIGHT HERE ON PAGE 220 IS THE ACTUALS.

RIGHT. OKAY SO. CORRECT. OKAY. SO I WANT TO KNOW, CAN YOU TELL ME WHAT OUR END OF YEAR POSITIVE OR NEGATIVE WAS AT THE END OF THE YEAR FROM A CASH POSITION? SO TOTAL REVENUES LESS TOTAL EXPENDITURES. NOW I'M NOT I DON'T IT WOULDN'T HELP ME FOR MY UNDERSTANDING TO HAVE A DEPRECIATION THAT NEVER COMES OUT OF THE ACCOUNT. SO, SO WHAT I WOULD ASK FOR IS, IS DID THE ENTERPRISE MAKE MONEY OR LOSE MONEY DURING THAT YEAR? IT DID. SO FACTORING IN DEPRECIATION JUST ON THE STATEMENT, IT MADE $2.8 MILLION $17,700,000 IS DEPRECIATION.

SO IF YOU BACK THAT OUT YOU MADE $19,000,000.

OKAY. SO THE ENTERPRISE AND I KNOW GOVERNMENT DOESN'T ALWAYS WORK LIKE BUSINESS.

RIGHT? AND WE COME AT THIS WITH A BUSINESS MINDSET, BUT THIS ONE ACTUALLY DOES.

THIS IS A BUSINESS. RIGHT. AND SO THIS BUSINESS GROSSED $100 MILLION, $100 PLUS MILLION IN REVENUES AND IT EXPENDED ROUGHLY $80 MILLION. $81 MILLION IN EXPENDITURES.

BY THE TIME YOU ADD IN YOUR. I GUESS YOU LOST $2 MILLION IN INTEREST EARNINGS? WAS THERE AN ADJUSTMENT FOR THAT? I'D HAVE TO CHECK ON WHAT THAT IS.

YES, KATRINA AND I WILL GET TOGETHER AND.

I THINK THE REVENUE SHOULD BE IN BRACKETS IN THE EXPENSES.

I'M GOING TO END UP IN WAY TOO MANY ACCOUNTING DETAILS.

BUT NEGATIVES [LAUGHTER] ARE ACTUALLY A GOOD THING ON THAT AREA.

IN YOUR OPINION RIGHT NOW. YOU YOU'RE TELLING ME THIS THIS FUND, THIS ENTERPRISE PROFITED, RIGHT? HAD AN EXCESS OF $19 PLUS MILLION DOLLARS AT THE END OF THE YEAR.

RIGHT SO WE EXPECTED TO WALK INTO THE MONEY OR INTO THE YEAR.

WHAT'S THE WHAT'S OUR MINIMUM RESERVE IN SEWER AND WATER? DONNY, DO WE DO WE NEED $22 MILLION A YEAR? I DON'T HAVE THAT NUMBER WITH ME.

SO THE MINIMUM RESERVE THAT I REMEMBER LOOKING BACK AND SEEING I THOUGHT WAS SOMEWHERE AROUND $21,000,000 $22 MILLION A YEAR.

AND, AND THEN WE WOULD HAVE PUT THIS NUMBER ON TOP OF IT, RIGHT? THE $19 PLUS MILLION WOULD HAVE BEEN ON TOP OF THOSE RESERVES THAT YOU HOLD IN THAT ACCOUNT? YES WHEN WE VOTED THE BUDGET IN, WE REDUCED THAT DOWN TO $7 MILLION.

AND SO I WANT TO MAKE SURE THAT I'M NOT MISSING SOMETHING.

[01:15:04]

FROM A BUDGETARY STANDPOINT, IT WAS JUST REBALANCING.

BUT YOU DIDN'T LOSE MONEY IN ACTUAL. SO WE REBALANCED THE ENTERPRISE? RIGHT. BASED ON SOMETHING OUTSIDE OF THE ENTERPRISE? AND YOU'RE REBUDGETING MID-YEAR FOR 24 AND 25 AS YOU'RE ACCEPTING 25-26 BUDGET.

SO I GUESS WHAT I WOULD LIKE TO DO IS I'D LIKE TO LOOK BACK AND I'D LIKE TO GET A JUSTIFICATION FROM THE STAFF ON WHAT MONIES CAME OUT OF THIS ENTERPRISE TO REBALANCE. I DON'T. I DON'T KNOW THAT WE REBALANCE.

LIKE THAT'S PROBABLY NOT A TERM THAT'S EASILY DEFINED SO, SO WHAT I WOULD HEAR YOU SAYING IS THERE WERE ADDITIONAL EXPENDITURES SOMEWHERE THAT AREN'T REFLECTED ON THIS IN THIS FISCAL YEAR REPORT. WHAT, WHAT WERE THOSE EXPENDITURES? WHERE DID THE MONEY GO? WHY DID WE END UP HAVING TO START A BUDGET PROCESS AND A BUDGET CONVERSATION AT $7 MILLION INSTEAD OF THE $36,000,000? AND IT REALLY WOULDN'T EVEN BE THE $36,000,000 I KNOW YOU COULD GET ME THE ACTUALS NOW, BUT THAT WAS JUST A BUDGETARY NUMBER.

BUT THERE WAS A LOSS SOMEWHERE IN THERE THAT WE REPRESENTED ON PAPER WHEN WE WHEN WE PUSHED THE BUDGET FORWARD.

OTHERWISE WE WOULD HAVE THOSE MONIES IN RESERVES THAT COULD GO INTO CIP.

CORRECT? LET US LOOK AT IT. OKAY. BECAUSE I DON'T WANT TO SAY YES AND BE MISLED BECAUSE I NEED TO REVIEW WHAT THOSE DETAILS WERE. MR. PATH, I SAW YOU LIGHT UP.

DID YOU HAVE ANYTHING TO ADD? NO, I AGREE, I THINK WE NEED TO REGROUP AND I MEAN THE FOCUS HAS BEEN THE AUDIT, NOT THE BUDGET. AND SO LET ME LET ME GET KATRINA WORKING ON THAT.

AND WE CAN GET WE CAN GET SCOTT'S OPINION ON IT AS WELL.

AND WE CAN BE READY MORE FOR THAT FOR THE NEXT TIME.

AND I WOULD OFFER, I KNOW I BROUGHT THIS PREVIOUSLY JUST WITH THE SAME CONCERN, AND I WAS TOLD YOU NEED TO WAIT ON THE BUDGET.

THE BUDGET'S GOING TO SHOW THAT THE MONEY IS WHAT IT OR I'M SORRY.

YOU NEED TO WAIT ON THE AUDIT. THE AUDIT IS GOING TO SHOW THAT THE MONIES THAT WE BUDGETED ARE CORRECT.

AND SO RIGHT NOW I WOULD SAY THAT THAT DOESN'T ADD UP FOR ME.

SO I WOULD LIKE TO SIT DOWN WITH, WITH YOU GUYS AND, AND SEE IF YOU CAN SHOW ME WHAT THE ACTUAL STARTING POSITION SHOULD BE NOW WITH THESE ACTUALS IN THAT ENTERPRISE. AGAIN, THIS WASN'T SOMETHING THAT WE WERE LOOKING AT, SOMETHING YOU BROUGHT TO US. AND SO BUT WE CAN LOOK AT IT AND BRING IT BACK AT THE NEXT MEETING SO. GREAT. OKAY. SCOTT, YOU HAVE ANYTHING ELSE? AM I SEEING THAT CORRECTLY ON SEWER AND WATER? YOU SEE THAT IT PROFITED $2.8 MILLION PLUS THERE'S A DEPRECIATION ASPECT THERE THAT GOVERNMENTS GET TO ACKNOWLEDGE FOR SOME REASON.

BUT THERE'S NO ACTUAL DEDUCTION FOR THAT. YES.

I MEAN THAT DEPRECIATION EXPENSE IN ACCORDANCE WITH THE GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IT'S REQUIRED TO BE RECORDED AS AN EXPENSE OF THE WATER AND SEWER FUND. BUT KEEP IN MIND THAT IS A NON-CASH EXPENSE THAT DID NOT ACTUALLY REPRESENT MONIES OR DOLLARS EXPENDED DURING THE YEAR.

OKAY. SO THANK YOU MR. KRCHNAK ON THAT AND WE APPRECIATE THE PRESENTATION.

I KNOW WE'VE DRIFTED A LITTLE OVER OUR 3:00 OR 3:20.

STAFF DO Y'ALL HAVE ANYTHING ELSE TO ADD? I KNOW I'M READY TO SEE IF THESE GUYS WANT TO MOVE IT FORWARD ON A MOTION.

SCOTT, YOU DON'T HAVE ANYTHING ELSE, DO YOU? I HAVE NOTHING FURTHER TO ADD AT THIS POINT.

THANK YOU, MAYOR STANLEY. GREATLY APPRECIATE YOUR TIME.

WE WILL LET STAFF WORK THROUGH THESE ITEMS AND THEN MAY NOT NEED YOU IN PERSON HERE ON THE 14TH.

I KNOW WE HAD TALKED ABOUT BRINGING YOU HERE.

YOU WEREN'T ABLE TO GET HERE TODAY, SO YOU'RE WELCOME TO COME ON THE 14TH.

FOR THAT ACCEPTANCE OR APPROVAL OF THAT. BUT IF WE DON'T NEED IT, THEN WE'LL.

WE CAN DO THIS IN A TELECONFERENCE FORM AGAIN.

OKAY. THAT SOUNDS GREAT. COUNCIL? NOPE, I'M READY TO MAKE A MOTION.

OKAY. I DO WANT TO CLARIFY THE MOTION, AND I THINK WE'RE ALL GOOD WITH IT. IT'S A MOTION TO FILE IN THE CITY SECRETARY'S OFFICE.

YEAH. PERFECT. SO I MOVE TO FILE OF THE. MOVE TO FILE THE CITY OF AMARILLO ANNUAL COMPREHENSIVE FINANCIAL REPORT.

SECOND. I HAVE A MOTION AND A SECOND TO FILE THE ANNUAL COMPREHENSIVE FINANCIAL REPORT DRAFT IN THE CITY SECRETARY'S OFFICE.

ANY FURTHER DISCUSSION? ALL IN FAVOR, PLEASE SAY AYE.

AYE. ANY OPPOSED? MOTION PASSES. HEY, THANK YOU GUYS FOR BEING HERE TODAY.

[01:20:05]

HAVE A GREAT WEEKEND SIR.

* This transcript was compiled from uncorrected Closed Captioning.