[4.3. Center City Tax Increment Reinvestment Zone (TIRZ) #1 History and Upcoming Process to Update the TIRZ #1 Project and Finance Plan and the Downtown Amarillo Strategic Action Plan]

MR. FREEMAN. YES, SIR. SO HERE TODAY, JUST TO GIVE A BRIEF HISTORICAL BACKGROUND ON TIERS NUMBER ONE, AND ALSO GET CITY COUNCIL'S AWARENESS AND INPUT INTO THE UPCOMING PLAN UPDATE PROCESS FOR OUR FINAL FINANCE AND PROJECT PLAN, AS WELL AS OUR STRATEGIC ACTION ACTION PLAN THAT TIERS, NUMBER ONE BOARD IS CURRENTLY PURSUING.

SO JUST A LITTLE BACKGROUND ON TIERS OR TAX INCREMENT FUNDS.

TIPPS. THEY ARE USED AS AN ECONOMIC DEVELOPMENT TOOL TO CAPTURE TAX REVENUE WITHIN A CERTAIN GEOGRAPHIC BOUNDARY IN ORDER TO REINVEST INTO THAT AREA AND SPUR GROWTH. BASICALLY ANYTHING WE CAN DO TO INVEST IN THAT ZONE OVER TIME IS AN INVESTMENT, LIKE A, LIKE A SAVINGS ACCOUNT WOULD BE YOU CAN'T REALLY TOUCH IT.

FOR CITYWIDE SERVICES, IT HAS TO BE SPENT WITHIN THAT ZONE AND CONTINUE TO GROW UNTIL ULTIMATELY THE ZONE TERMINATES.

AND THEN ALL THE TAXING ENTITIES THAT PARTICIPATE ARE ABLE TO BENEFIT FROM THAT GROWTH AND INVESTMENT THAT TAKES PLACE.

WE DO HAVE A TEN MEMBER BOARD. IT'S MADE UP OF THREE FROM THE CITY AND THREE FROM POTTER COUNTY AND THEN ONE FROM EACH OTHER ATTACKS AGAINST.

AND THEN WE HAVE TWO CURRENTLY IN POTTER COUNTY AND ONE IN RANDALL COUNTY.

THIS ONE TODAY WE ARE TALKING ABOUT IS THE CENTER CITY TAX INCREMENT REINVESTMENT ZONE.

THAT WAS ESTABLISHED IN 2006 BOARD DECISIONS MADE BY THE ZONE.

THEY DO COME TO CITY COUNCIL FOR FINAL APPROVAL.

AND THEN TEARS HAS AUTHORITY FOUND IN TWO SECTIONS OF THE CODE, CHAPTER 11, THE TAX CODE.

AND THEN THEY ALSO CAN UTILIZE CHAPTER THREE, 80 AGREEMENTS FOUND IN THE TEXAS LOCAL GOVERNMENT CODE.

SO AS I MENTIONED, IT'S A SPECIAL FUND CALLED THE TAX INCREMENT FUND THAT YOU BASICALLY INVEST INTO IT.

IT CAN BE USED FOR INFRASTRUCTURE. IT CAN BE USED FOR ECONOMIC DEVELOPMENT.

BUT IT ALL HAS TO TAKE PLACE WITHIN THAT ZONE, AND THEN IT BUILDS UPON ITSELF OVER TIME.

TYPICALLY IN AREAS THAT ARE EITHER SLOW, DILAPIDATED, NOT GROWING LIKE THE REST OF THE CITY, OR IT MIGHT BE A NEW GREENFIELD DEVELOPMENT THAT JUST IS LACKING IN INFRASTRUCTURE OR THE OR THE TOOLS NEEDED TO, TO GET THAT PROJECT OFF THE GROUND. IT IS NOT AN ADDITIONAL TAX OR FEE.

IT IS REALLY A DEFERRAL OF THE TAX THAT WOULD USUALLY COME TO THE GENERAL FUND AND INVEST IT INTO THAT ZONE.

THIS IS JUST A GRAPHIC REPRESENTING HOW IT WORKS.

THE BLUE DOWN AT THE BOTTOM IS THE BASE ASSESSED VALUE.

ONCE YOU LOCK IN FOR DOWNTOWN IN PARTICULAR, IT WAS 2006.

SO ANY TAX BASE IN 2006 WAS YOUR BASE VALUE. ALL THE TAXING ENTITIES THAT PARTICIPATE CONTINUED TO RECEIVE THAT BASE VALUE AS IT GROWS.

YOU SEE IN YELLOW IS THE INCREMENTAL ASSESSED VALUE.

THAT IS WHAT IS CAPTURED BY THE ZONE AND INVESTED AND CONTINUES TO GROW OVER TIME.

AND THEN IN THIS EXAMPLE, IT GOES THROUGH 30 YEARS TERMINATES AND THEN ORANGE.

YOU'VE GOT THAT POST PROJECT ASSESSED VALUE. SO ALL OF IT GOES BACK TO THE TAXING ENTITIES ONCE IT'S GROWN FULLY OVER THAT 30 YEAR TERM.

IN THIS EXAMPLE, THIS IS JUST A DOLLAR AMOUNT EXAMPLE THAT SHOWS AN EXAMPLE PROJECT.

SAY YOU HAVE A PROPERTY VALUE OF 202,000 CREATES 4600 REVENUE.

THAT'S THE CURRENT BASE BASE VALUE IN THIS EXAMPLE.

STILL CONTRIBUTING $4,600 SPREAD OUT ACROSS THE TAXING ENTITIES.

YOU HAVE A MAJOR INVESTMENT GROWS TO 404.5 MILLION.

THAT'S COLLECTING 102,000. BUT IN THIS EXAMPLE THE SCHOOL DISTRICT DOESN'T PARTICIPATE.

SO THEY STILL GET ALL THAT GROWTH OF 44,000. BUT THEN YOU SEE THE BREAKDOWN OF THAT ADDITIONAL 55 SPREAD OUT BY POTTER COUNTY.

AMARILLO AND AMARILLO COLLEGE AND TIDEWATER DISTRICT. THAT WOULD BE WHAT'S REINVESTED INTO THE ZONE TO CONTINUE TO SPUR THAT DEVELOPMENT.

BACKGROUND. TEXAS. THIS IS A VERY POPULAR TOOL.

THERE'S 477 ACTIVE AS OF 2023, AND THAT'S IN 205 CITIES ACROSS THE STATE.

THERE'S A COMBINED ACREAGE OF 521,000 ACRES. AVERAGE SIZE IS ABOUT 1100.

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THAT'S PRETTY COMPARABLE TO THE ZONES THAT WE HAVE HERE IN AMARILLO, BUT THEY DO RANGE IN SIZE.

WE FOUND ONE EXAMPLE OF A ONE ACRE ZONE. I'M NOT SURE WHAT THEY USE THAT FOR, BUT THERE'S ONE ACRE UP TO THE BIGGEST I FOUND WAS 15000 ACRES OF TEMPLE.

SO THERE'S QUITE A WIDE RANGE DEPENDING ON THE NEEDS OF THE VARIOUS CITIES INVOLVED.

THESE ARE JUST SOME OF THE PROJECTS THAT YOU MIGHT SEE FOCUSED IN THE ZONES.

PUBLIC PROJECTS. THE, THE TOP THREE WERE WATER, SEWER DRAINAGE, ROAD WORK AND THEN FOLLOWED BY ECONOMIC DEVELOPMENT, BUT IT COVERS A WIDE RANGE DEPENDING ON HOW YOU BUILD OUT THE PLAN AND WHAT THE GOALS AND OBJECTIVES ARE OR WHAT YOU WILL ULTIMATELY HAVE FOR QUALIFYING PROJECTS.

THIS IS THE TYPE OF PROPERTY THAT YOU SEE IN THESE ZONES.

YOU'VE GOT SOME THAT ARE COMBINED. SIMILAR TO OUR DOWNTOWN ZONE.

SOME ARE INDUSTRIAL COMMERCIAL. ONLY SOME ARE RESIDENTIAL.

BUT THE MAJORITY ARE MIXED. THESE ARE THE FUND BALANCES.

AS YOU CAN SEE, JUST FOR A LITTLE HISTORY BACK IN 2223, AS FAR AS THE GROWTH THAT THEY'VE SEEN OVER THE LAST FEW YEARS IN THOSE ZONES.

AND I JUST WANT TO GET INTO A LITTLE BIT OF THE HISTORY OF DOWNTOWN AND WHY WE'RE HERE TODAY TALKING ABOUT WHY IS IT TIME TO UPDATE IT AND GET MORE INPUT.

SO HISTORICALLY, THE DOWNTOWN STRATEGIC ACTION PLAN WAS THE FIRST PLANNING PROCESS FOR DOWNTOWN STARTED IN THE FALL OF 2006.

THAT WAS THE EXACT SAME YEAR THAT THE TIERS WAS ESTABLISHED, MAINLY BECAUSE HE WANTED TO LOCK IN THE VALUE IN 2006, BUT THIS PLAN WAS NOT ACTUALLY FINISHED UNTIL 2008.

SO IT WAS A MULTI YEAR PROCESS. FIVE PUBLIC MEETINGS AVERAGE ABOUT 45 TO 70 AT EACH MEETING.

IT DID INCLUDE A CITIZEN DOWNTOWN DEVELOPMENT COMMITTEE OF 21 MEMBERS THAT HELPED OVERSEE THAT PROCESS AND INCLUDED CITIZENS CENTER, CITY REPRESENTATIVES, ELECTED OFFICIALS, A MIX OF FOLKS THAT ARE INTERESTED IN WORKING ON THIS COMMITTEE.

THERE WAS A CONSULTANT HIRED TO HELP FACILITATE THE PROCESS, GET ALL THE BACKGROUND RESEARCH, MARKET STUDIES, CONDITIONS, ANALYSIS, AND ULTIMATELY DRAFTED THE PLAN, WHICH WAS BROUGHT FOR ADOPTION IN 2008.

SO AT THE TIME, GROWTH IN DOWNTOWN WAS VERY LIMITED COMPARED TO CITYWIDE VALUES FROM 85 TO 2006.

IT WAS 2.95 IN DOWNTOWN OF GROWTH, COMPARED TO 102% ACROSS THE CITY.

2000 AND 2006 YOU SAW THAT AT 2.11 COMPARED TO 14.7.

SO IT FELL BEHIND IN COMPARATIVE TO THE ENTIRE CITY'S GROWTH.

THE PLAN RESEARCHED WORKFORCE, RESIDENTIAL, HOSPITALITY MARKETS AND DEVELOPED THE GOALS, WHICH INCLUDE SPECIFIC GOALS FOR HOUSING, HOTELS, OFFICE, COMMERCIAL RESTAURANTS. FAMILY FRIENDLY VENUES, WHICH INCLUDE IDEAS LIKE CINEMA, THE BALLPARK, HIGHER EDUCATION, URBAN DESIGN STANDARDS, AND THEN HISTORIC BUILDING REHABILITATION AMONGST OTHERS.

THESE ARE FURTHER DEFINED AS YOU GO THROUGH THE PLANNING DOCUMENT AND GEOGRAPHIC ZONES WITHIN DOWNTOWN.

YOU GOT A WAREHOUSE DISTRICT, YOU HAVE THE BANKING AND FINANCE DISTRICT, GOVERNMENT DISTRICT.

SO THEY WOULD HAVE SPECIFIC GOALS AND OBJECTIVES INCLUDED.

AND THEN LASTLY, THE DOCUMENT, YOU'LL FIND ECONOMIC DEVELOPMENT STRATEGIES. THAT'S STAFFING, LONG TERM COMMITTEE FOCUS, PUBLIC IMPROVEMENT DISTRICTS, PUBLIC PRIVATE PARTNERSHIPS.

SOME OF THOSE INITIATIVES LIKE THE TIERS THAT IS ADOPTED WITHIN SIX.

SO THIS ISN'T GOING TO BE THE FIRST TIME THAT WE'VE UPDATED THE PLAN. WE DID TAKE A SHOT AT IT BACK IN 2018 AND 2019 THROUGH AN INTERNAL PROCESS.

NO CONSULTANT WAS HIRED AT THAT TIME. WE HAD A COMMITTEE MADE UP 11 MEMBERS THAT TIME AROUND.

IT WAS JUST BASICALLY A CITY COUNCIL MEMBER. THEN WE HAD TWO REPRESENTATIVES FROM ALL THE VARIOUS BOARDS THAT KIND OF TOUCHED DOWNTOWN.

THERE WAS A TIERS NUMBER ONE, DOWNTOWN, AMARILLO, IN THE PLANNING AND ZONING OR DOWNTOWN DESIGN REVIEW BOARD IN CENTER CITY THAT ALL PARTICIPATED. IT WAS BASICALLY A KIND OF A PROGRESS REVIEW OF HOW THINGS WERE GOING SO FAR AND REFRESH THE GOALS AND OBJECTIVES.

SO THROUGHOUT THE DOCUMENT, WE UPDATED THE MAPS, THE DATA, THE MARKET DATA, AND THEN ALSO CAPTURE THE KEY ACCOMPLISHMENTS.

AND THEN REALLY WHAT REMAINED FOR THE GOALS AND, AND ALSO REFINED IT A LITTLE BIT MORE, BUT GROWTH INCREASED FROM THAT TIME.

DID SEE 70% COMPARED TO THE CITY OVERALL, 63% FROM THAT 2006 TO 2019.

SO YOU CAN SEE STARTING TO PERFORM AT A HIGHER LEVEL.

COMPARATIVELY, SOME OF THE REFINE GOALS STILL HAD DIVERSIFIED RESTAURANT RETAIL INCLUDED ONE DOWNTOWN GROCERY STORE. THAT ONE'S STILL OUTSTANDING. RELOCATING THE BUS SERVICES AT THE TIME THAT HADN'T TAKEN PLACE.

THAT'S ALL WE CAN CHECK OFF THE LIST NOW. WAYFINDING PROGRAM WAS DISCUSSED.

WE'VE HAD SOME WORK DONE ON THAT CIVIC CENTER COMPLEX RENOVATION, REHABILITATE THE SANTA FE DEPOT CAMPUS, AND THEN CREATING URBAN DESIGN DEVELOPMENT STANDARDS FOR EACH ZONE.

THAT'S SOMETHING WE STILL HAVE KIND OF OUTSTANDING BECAUSE NOT NOT ALL THE DOWNTOWN STANDARDS MAYBE FIT IN EACH DISTRICT.

SO IF THERE'S AN ABILITY TO, TO MAKE CERTAIN CONCESSIONS AND CHANGES DEPENDING ON THE MAKEUP OF THAT ZONE.

AND THEN WE ALSO, AT THE SAME TIME AS UPDATING THE STRATEGIC ACTION PLAN, WE LOOKED AT THE URBAN DESIGN STANDARDS AND MADE SOME IMPROVEMENTS ON REQUIRING THE

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WALKWAY IMPROVEMENTS, THE STREETLIGHTS, SIDEWALKS, TREES FOR NEW PARKING LOT PROJECTS.

THEY DID NOT REQUIRE PEDESTRIAN LIGHTS. SO THAT WAS AN IMPORTANT CHANGE.

WE MADE AN EXCEPTION PROCESS FOR THE LIGHT POLE REQUIREMENTS TO ALLOW DIFFERENT OPTIONS.

WE HAVE A FEW DIFFERENT COLORED LIGHTS NOW AND A DIFFERENT STYLE LIGHT FOR ONE PARTICULAR BUSINESS DELINEATION MATERIALS FOR INTERSECTIONS.

AND THEN WE ADDED SKYWALKS TO BE MORE FLEXIBLE WHERE THOSE WOULD BE ALLOWED THROUGHOUT DOWNTOWN.

SO AS I MENTIONED, THE TEARS WAS GREAT UNTIL SIX.

WE STARTED WITH THE BASE VALUE OF 139 MILLION.

WE HAD BASICALLY FULL PARTICIPATION FROM EVERYONE EXCEPT THE THE SCHOOL DISTRICT.

IT WAS EXTENDED IN 2022 TO ADD 20 YEARS TO THE THE PLAN.

SO NOW IT EXPIRES IN 2056. BUT THE DIFFERENCE IS THAT IT DROPS DOWN TO 50% TAX RATE ON PARTICIPATION INSTEAD OF THE CURRENT 100%.

SO I'LL TOUCH ON MORE ON THAT AND WHAT THE IMPACT WILL HAVE ON THE SLIDES.

AND THEN IN 2025, WE HAVE GROWN TO 327 MILLION, OR AN INCREASE OF 187 MILLION FROM THAT ORIGINAL BASE VALUE.

SO IT IS PERFORMING, PERFORMING VERY WELL. AND THEN, AS I MENTIONED, THE TIER ONE GOALS AND THE PROGRESS SO FAR, THESE WERE THE ADOPTED GOALS IN THE FINANCE PROJECT PLAN FOR THE TIERS, HOTEL DEVELOPMENT, URBAN RESIDENTIAL OFFICE, COMMERCIAL RETAIL BALLPARK.

WE'RE MAKING GOOD PROGRESS ON HOTEL DEVELOPMENT.

STILL NEED THE ROOM COUNTS, BUT WE DEFINITELY HAVE THE INVESTMENT NUMBERS.

KEEPING IN MIND THAT THE INVESTMENT NUMBERS WERE ESTABLISHED IN 2006, AND THINGS ARE A LOT MORE EXPENSIVE NOW, THAT MADE US MEET THAT TARGET A LOT SOONER. WE'RE STILL VERY SHORT ON URBAN RESIDENTIAL, SO THAT'S A KEY PRIORITY STILL.

AND WE'LL BE EVALUATED THROUGH THIS PLANNING PROCESS.

AND THEN WE'VE GOT OFFICE COMMERCIAL AND RETAIL THAT ARE STILL OUTSTANDING GOALS.

THESE ARE THE CURRENT LONG TERM COMMITMENTS. SO HERE'S NUMBER ONE.

GETTING ESTABLISHED DID FOCUS A LOT ON JUST TRYING TO GET DEALS MADE AND GET CONSTRUCTION STARTED SO WE CAN GROW THAT TAX BASE.

SO YOU'VE GOT QUITE A FEW OF OUR REBATE AGREEMENTS STILL LISTED.

THESE ARE THE PROJECTIONS AT THE TIME OF THIS PRESENTATION, WHICH WAS LAST FALL OF THE REMAINING PAYMENTS FOR THOSE ZONES.

SO IT WAS ABOUT 5.7 MILLION LEFT IN REBATE PAYMENTS.

THERE'S ALSO DEBT PAYMENTS THAT WENT FOR STREETSCAPE PROJECTS AROUND THE PARK COUNTY COURTHOUSE AND THROUGHOUT THE DOWNTOWN AREA AS LONG AS AS WELL AS THE PARKING GARAGE AND THE HOTEL TO THE TUNE OF ABOUT 2.4 MILLION. AND THEN HISTORICALLY, THERE'S ALWAYS BEEN ANNUAL FUNDING THAT GO TOWARD COMMUNITY PROJECTS, WHICH ARE USUALLY THE STREETSCAPE GRANTS THAT HELP SUPPORT THE CENTER CITY FACADE GRANT PROGRAM AS WELL.

PLUGGED INTO THEIR BUDGET. THIS IS JUST AN AERIAL OVERVIEW FROM BACK IN 2006 THAT HAD A FEW STARS TO, TO JUST SHOW WHERE DEVELOPMENT HAS OCCURRED. WE'VE GOT THE, OF COURSE, COTTAGE TOWN, CITY HALL, PARK COUNTY HAPPY STATE BANK TO THEM. QUITE A FEW THAT TOOK PLACE AS NEW DEVELOPMENT.

WE'VE ALSO HAD RENOVATIONS LIKE THE CAMPUS. WE'VE HAD POLK STREET IMPROVEMENTS WITH BARFIELD AND THE FISKE HOTEL.

JUST AS EXAMPLES OF HOW THINGS HAVE CHANGED. THIS IS THE LATEST AERIAL 2025.

SO YOU CAN SEE THE DIFFERENCES. ONE THING TO POINT OUT, AND I'LL TOUCH ON HERE A SECOND, IS IT'S IT'S FAIRLY CONTAINED TO THE CORE OF THE DOWNTOWN. SO ONCE I SHOW YOU A MAP HERE, YOU'LL SEE THERE'S STILL QUITE A BIT OF TERRITORY THAT HASN'T BEEN TOUCHED.

THE MAIN PROGRESS WE'VE SEEN IS IN THIS CORE AREA.

AND THEN ALSO OUR KIND OF RETIREMENT RELIGIOUS CHURCH DISTRICT IS WHERE YOU'VE SEEN THE MOST OF THE INVESTMENT OCCURRING.

SO THIS SLIDE HERE IS AN OLDER MAP OF WALKWAY IMPROVEMENTS FOCUSING IN ON THE GREEN.

AND THE YELLOW IS THE, THE NEW STANDARDS. THE BLUE IS BASICALLY WE ADD SOME WALKWAY IMPROVEMENTS THAT SORT OF EMBED CODE, BUT THEY WERE DEVELOPED IN THE PAST. THE GREEN AND THE YELLOW REALLY HIGHLIGHTS WHERE THE INVESTMENTS TAKING PLACE.

WITH NEW DEVELOPMENT, WE'RE INVESTING IN FACADE AND STREETSCAPE IMPROVEMENTS.

SO EVERYTHING IN WHITE AND GRAY IS STILL YET TO BE TOUCHED.

SO THAT'S, THAT'S AREAS THAT CAN BE IMPROVED EITHER WITH INFRASTRUCTURE, NEW BUILDINGS, REHABILITATION, THOSE SORTS OF PROJECTS. AS FAR AS THE ENTITY PARTICIPATION, SO WE ARE CURRENTLY AT 100%.

THIS IS THE PROJECTION OUT TO 2036 OF WHAT THAT TAX VALUE COMING INTO THE BUDGET EQUALS.

WHEN YOU COMBINE ALL THOSE TAX RATES, YOU CAN SEE WE'RE GROWING FROM CURRENTLY WE'RE BRINGING ABOUT 2.3 MILLION IN REVENUE.

GROWING AT 2036 WILL BE ABOUT 4%. AND THEN YOU CAN SEE THE VARIOUS TAX ENTITIES IN THEIR SHARE OF IT IN 2025.

I DID LOOK, THE CITY OF AMARILLO CONTRIBUTION WAS ABOUT A QUARTER OF A PERCENT OF OUR GENERAL FUND REVENUE.

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AND THEN KOLLER COUNTY IS ABOUT 1.52% OF GENERAL FUND REVENUE.

SO IT'S A IT'S A SMALL FRACTION OF THE OVERALL BUDGET FOR OUR OUR TWO, TWO LARGEST ENTITIES THAT PARTICIPATE.

BUT THE IMPORTANT PART IS SEEING HOW THAT'S GOING TO GROW BASED ON THIS INVESTMENT, THAT'S GOING TO ALLOW THEM TO HAVE BASICALLY A WINDFALL WHEN THE ZONE TERMINATES AND MAY, MAY OR MAY NOT HAVE BEEN THERE. IF THIS THIS ZONE WASN'T THERE TO ENCOURAGE THAT DEVELOPMENT TO TAKE PLACE.

SO WHEN WE LOOK AT 2037, THIS IS WHERE WE START THE NEW 20 YEAR CLOCK AT 50% PARTICIPATION.

YOU'RE BASICALLY CUTTING IT IN HALF. SO THE CITY IS GOING TO BE BROUGHT BACK DOWN TO ABOUT 687,000 IN 2037.

THE COUNTY OF A MILLION AMARILLO COLLEGE OF 382.

AND THEN OF COURSE, KNOWING THAT THAT IS THE EXACT SAME AMOUNT THAT WILL COME TO THE GENERAL FUND OF EACH ENTITY STARTING THAT YEAR.

SO THE CITY WILL GET 687,000 VIEWS ON ANY GENERAL FUND PURPOSES.

AND THEN IT CONTINUES TO GROW EACH YEAR. THESE ARE JUST BASED ON SOME CONSERVATIVE PROJECTIONS.

THROUGH 2046, THE CITY'S PORTION GROWS TO A MILLION.

AND THEN BY 2056, 1.5 MILLION COUNTING 2.3. SO IT'S BASICALLY GROWING BACK TO HOW WE WOULD END IN 2036.

IT JUST TAKES US 20 YEARS TO GROW BACK TO THAT LEVEL.

AND THEN IN 2057, WHEN IT'S ALL SAID AND DONE, THE ZONE EXPIRES.

THIS IS GOING TO BE THE RESULTS. SO YOU'LL START GROWING THAT IN 2037, UP TO 1.6 MILLION BY 2057. AND THEN YOU GET TO DOUBLE THAT BECAUSE YOU'LL START TO CAPTURE THE OTHER HALF OF THE SHARE.

SO SAME AMARILLO IN 2057. WE'LL START TO BRING IN 3.2 MILLION IN ADDITIONAL REVENUE COMBINED FROM THE RESULT OF THAT.

POTTER COUNTY 4.8 MILLION. AMARILLO COLLEGE 1.8 MILLION.

SO IT'S THAT LONG TERM LOOK AND INVESTMENT TO SEE THAT TAX REVENUE GROW.

AS FAR AS THE UPCOMING PLANNING PROCESS. THE TOURISM BOARD HAS MET A COUPLE OF TIMES AND GIVEN DIRECTION TO STAFF TO ISSUE AN RFP AND RFQ PROCESS TO SELECT CONSULTANTS.

THAT WOULD HELP UPDATE NOT ONLY THE FINANCE PROJECT PLAN, BUT ALONG WITH THE STRATEGIC ACTION PLAN THAT MAY BE COMBINED.

THEY MAY BE SEPARATE DOCUMENTS. WE WORK WITH THE CONSULTANT TO SEE WHAT FITS THE BEST COMPARED TO WHEN WE FIRST DID THIS, WE KIND OF TOOK THEM PARALLEL TO EACH OTHER, BUT ONE HAD TO ADOPT BEFORE THE OTHER, SO THEY COULDN'T BE REALLY COMBINED.

KNOWING THAT WE STILL HAVE 320, 57, IT MIGHT MAKE SENSE TO KEEP THEM COMBINED BECAUSE AFTER THAT THEN YOU COULD JUST HAVE A STANDALONE DOWNTOWN PLAN.

BUT UP UNTIL THAT POINT, THEY'RE GOING TO WORK IN TANDEM TOGETHER.

SO THE DETAILS ARE GOING TO BE FURTHER REFINED WITH THE CHOSEN CONSULTANT, BUT WE DO ANTICIPATE ABOUT 12 TO 14 MONTHS PROCESS, MAINLY BECAUSE OF THE PUBLIC ENGAGEMENT PROCESS.

AND THEN THE FULL CONSIDERATION THROUGH TIERS, NUMBER ONE, POTTER COUNTY AND CITY COUNCIL BEFORE IT'S FULLY ADOPTED.

SO WE'RE HERE TODAY JUST TO GET ANY FEEDBACK COUNCIL MIGHT HAVE WITH THE PROCESS.

AND THEN AS WELL AS IF THERE'S ANY THOUGHTS THAT YOU ALL MIGHT HAVE ON HOW WE WANT TO MAKE UP THE COMMITTEE OR MAKE RECOMMENDATIONS TO THE TIERS BOARD ON HOW THAT'S HANDLED THIS SUMMER. RIGHT. DISCUSSION ON TIERS ONE. COUNCIL.

WOULD YOU NOT WANT THAT COMMITTEE TO BE MADE UP? I MEAN, DO YOU WANT TO KEEP IT FROM BEING THE TIER BOARD MEMBERS IT SHOULD BE.

IT COULD BE THE TIERS. BOARD. IT COULD BE A MIXTURE OF CITY BOARDS.

IT COULD HAVE CITY COUNCIL CITIZENS. IT JUST DEPENDS ON HOW, HOW WE WANT TO STRUCTURE IT.

SO HOW DO WE WANT IT? TIERS IS GOING TO FUND THE CONSULTANT TO PAY FOR IT.

BUT ULTIMATELY COUNCIL'S GOT TO APPROVE THAT CONSULTANT AND OF COURSE ULTIMATELY APPROVE WHATEVER THEY MEANT.

SO WE WANTED THAT BUY IN AND, AND FEEDBACK. BUT I THINK ULTIMATELY THERE'S A NUMBER OF WAYS THAT WE COULD GET A SUCCESSFUL COMMITTEE TO WORK WITH.

IS THAT HAVE THEY GOTTEN TO THE POINT WHERE THEY TALK ABOUT THE CONFLICTS OF INTEREST THAT CAN POSSIBLY ARISE, WHETHER YOU'RE ON A TIERS BOARD OR YOU'RE ON THIS NEW COMMITTEE? OH, YES. YEAH. WE'VE HAD THAT CONFLICT OF INTEREST SESSION A COUPLE OF TIMES WITH THE TEARS BOARD AND THE SECONDARY FORUM.

SO THEY'RE THEY'RE AWARE OF THAT WHEN IT COMES TO VOTING ON PROJECTS AND MAKING SURE THEY ABSTAIN AND ARE INVOLVED IN THE VOTE.

SO IS, IS THE COMMITTEE GOING TO BE REPORTING TO THE TIERS BOARD ITSELF, OR IS THIS SOMETHING COMPLETELY SEPARATE? NOT REALLY THE REPORTS. ANYONE IT'S JUST PART OF THE PLANNING PROCESS TO TO PROVIDE FEEDBACK AND DIRECTION TO THE PLAN THAT ULTIMATELY THE TIERS BOARD IS GOING TO HAVE TO VOTE ON IT. SO THEY'VE GOT TO BRING THOSE RECOMMENDATIONS TO THE TEARS TEARS BOARD, BUT THEY DON'T.

IT'S NOT LIKE THEY REALLY HAVE AUTHORITY TO TO SAY YAY OR NAY TO THE PLAN PROCESS.

JUST HELP TO GUIDE IT, PARTICIPATE IN THE PUBLIC MEETINGS, PROVIDE FEEDBACK BASED ON THEIR LEVEL OF EXPERTISE IN DOWNTOWN DEVELOPMENT.

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DO ANY OF OUR OTHER BOARDS HAVE COMMITTEES THAT REPORT TO THEM? OR AT LEAST THEY DIDN'T REPORT, BUT AT LEAST GIVE THEM IDEAS? WELL, THE NEIGHBORHOOD PLANS EACH ENDED UP HAVING A COMMITTEE.

WE KIND OF SELF-SELECTED THEM AS WE STARTED WITH THE BARRIO, EAST RIDGE, NORTH HEIGHTS AND SAN JACINTO.

WE HAD KIND OF A KICKOFF MEETING AND BASED ON THE THE FOLKS THAT CAME, WE KIND OF GAUGE THEIR INTEREST AND THEY, THEY BASICALLY SELF-SELECTED THE COMMITTEE THAT HELPED US WORK ON IT AND THEN ULTIMATELY DEVELOPED FROM THERE TO BECOME A FULL RECOGNIZED NEIGHBORHOOD ASSOCIATION.

THANK YOU. ANDREW. WHAT'S THE BENEFIT OF FORMING COMMITTEE VERSUS LETTING ONE BOARD JUST HANDLE IT ALL? SOUNDS LIKE THE COMMITTEE'S BEEN ANSWERING THOSE GUYS ANYWAY. SO IT COULD BE.

IT COULD BE EITHER WAY. ONLY IF YOU THINK THERE'S MAYBE A VOICE THAT'S NOT ON THE BOARD BASED ON THEIR MAKEUP.

BUT I THINK NOW WE'VE GOT A PRETTY GOOD MIX ON THE BOARD WITH THE LATEST UPDATES FROM THE CITY AND THE COUNTY AS A WHOLE.

SO I THINK WE'VE GOT PRETTY GOOD COVERAGE THERE.

BUT IF A COUNCIL MEMBER WANTS TO BE ON IT, SINCE IT ULTIMATELY COMES TO CITY COUNCIL, THAT'S THAT'S SOMETHING TO CONSIDER AS WELL.

OKAY. THANK YOU. DID THE BOARD HAVE ANY RECOMMENDATION? I MEAN, DO THEY WANT TO DO IT OR WOULD THEY PREFER US ASSIGN PEOPLE MAYBE WITH SOME EXPERTISE IN THIS AREA? THAT COULD BE. I DON'T KNOW IF THEY HAVE A PREFERENCE AT THIS POINT. I THINK THEY WERE GOING TO WAIT TILL WE GOT A CONSULTANT ON BOARD TO KIND OF FURTHER EVALUATE WHAT THEIR RECOMMENDATIONS WERE, BUT I THINK THEY'D BE HAPPY TO TO LEAD IT AND BE INVOLVED.

AND THE PURPOSE OF THE COMMITTEE WOULD BE TO GIVE DIRECTION TO THE CONSULTANT OR, OR FEEDBACK OR ITS BASIC FEEDBACK AND BEING INVOLVED IN ALL THE PUBLIC MEETINGS THAT WE'LL HAVE AND JUST GIVE INPUT. JUST HAVING A SOUNDING BOARD THAT THEY CAN MEET ON A REGULAR BASIS, MAYBE A LITTLE BIT MORE INVESTED THAN JUST THE GENERAL PUBLIC THAT MAY COME TO 1 OR 2 MEETINGS.

THEY'RE THERE FROM THE START OF THE PROCESS TO THE END TO HELP DIGEST EVERYTHING AND MAKE SURE WE COME TO A GOOD RECOMMENDATION FOR THE FINAL PLAN.

OF COURSE, IT'S JUST STAFF TRYING TO DIGEST IT ALL.

IT'S A GOOD SOUND BOARD TO MAKE SURE WE'RE ALL HEARING SIMILAR THEMES AND RECOMMENDATIONS.

RIGHT. AND THEN ONE QUESTION I HAVE BACK IN THE PRESENTATION.

SO FROM 1985 TO 2006, PROPERTY VALUES IN THE DOWNTOWN AREA, THAT KIND OF MIRROR THE TEARS INCREASED BY HOW MUCH? LESS THAN 3%. SO THE VALUE OF PROPERTY IN DOWNTOWN AT THAT POINT WAS INCREASING LESS THAN 3% DURING THAT ENTIRE, THAT ENTIRE 31 YEAR PERIOD.

YEAH, THEY HAD MANY YEARS WHERE IT WAS DECLINING. AND AND MEANWHILE, THE PROPERTY IN THE BALANCE OF THE CITY WAS INCREASING AT 103%.

YES, SIR. SO THE CITY WAS PAYING, I MEAN, OUTSIDE OF THE AREA WAS PAYING MORE THAN ITS FAIR SHARE OF PROPERTY TAXES, I GUESS, WHEN IT RELATES TO DOWNTOWN, BECAUSE EVEN THOUGH WE HAVE I MEAN, WE STILL HAD TO REPLACE SEWER AND OTHER THINGS DOWNTOWN, BUT THERE WAS NO INCREASE OVER THAT TIME. CORRECT.

WE WERE ABLE TO DO THAT. AND THEN SO REALLY, DURING THAT PERIOD OF TIME OUTSIDE OF DOWNTOWN, BECAUSE IT WAS GENERATING MORE MONEY, WAS HAVING TO SUBSIDIZE DOWNTOWN BECAUSE IT WASN'T ABLE TO GENERATE ENOUGH PROPERTY TAX TO EVEN KEEP UP WITH INFLATION DURING THAT PERIOD OF TIME. AND THEN SINCE THEN, IT'S ACTUALLY OUTPERFORMED THAT.

AND REALIZING THAT THE INCREMENT OF THAT DOES GOES TO HELP THAT, BUT IT'S INVESTING IN THAT.

AND AT THE END OF THIS, THE CITY WILL GET ABOUT $3 MILLION A YEAR.

YOU SAID THAT IF WE HAD STAYED ON THAT THAT THAT 2% PROJECTION, I MEAN, IF NOTHING HAD EVER HAPPENED OR IMPROVEMENTS WOULD BE MADE, WE WOULD HAVE I MEAN, WE WOULDN'T BE GETTING ANY IMPROVEMENT, RIGHT? AND THE SCHOOL DISTRICT IS GETTING INVOLVED IN OPEN SPACE AT DAY ONE SCHOOL DISTRICTS.

I'M ASSUMING THAT DOWNTOWN, THEY CONTINUED AT A 2%, WHICH I GUESS THEY HAD DONE THAT FOR 31 YEARS.

I GUESS IT WOULD HAVE CONTINUED. I MEAN, THAT'S I GUESS THAT'S WHY YOU DO THINGS LIKE THIS, TO MAKE SURE THAT IT'S PAYING ITS FAIR SHARE AND THE VALUES ARE, ARE BEING ABLE TO DO THAT. THANK YOU. COUNCILMAN, YOU GOT ANYTHING? NO. OKAY. JUST ONE QUICK LOOK. SO A LOT OF TIMES TEARS ARE CREATED TO EFFECTIVELY HELP WITH THE BLOOD. OKAY. SO YOU'RE CAPTURING ALL THOSE AND YOU'RE KEEPING THEM RIGHT THERE.

DESCRIBE TO ME QUICKLY, LIKE, WHEN DO THESE GO AWAY? IF IF EVER. RIGHT. SO LIKE WHAT, WHAT OUR CITIZENS ARE SEEING WHEN WE EXTENDED THE TEARS, WHEN WE CUT IT IN HALF.

AND SO DO YOU GRADUATE OUT OF THIS PROGRAM? WHEN DOES THE MONEY GO BACK? WHEN WHAT'S THE STANDARD FOR SHOWING LIKE WE'VE WE'VE EFFECTIVELY TAKEN CARE OF THE BLIGHT.

WE'RE NOW HELPING HERE. WHAT DO YOU GUYS TYPICALLY SEE.

ACROSS THE STATE OF TEXAS. I THINK FROM MY EXPERIENCE YOU DO SEE THOSE 3030 YEAR ZONES.

SO THAT'S PRETTY TYPICAL AS TO WHY THEY PROBABLY CHOSE THAT LENGTH OF TERM TO GIVE ENOUGH TIME TO SEE THAT INVESTMENT AND GROWTH.

[01:00:04]

BUT IT'S NOT UNHEARD OF TO SEE 40, 50 4050 YEARS.

THAT'S WHY COUNCIL AT THE TIME DETERMINED IT WAS WORTH AT LEAST EXTENDING IT OUT AT HALF THE VALUE BECAUSE WE WE TOUCHED A LOT OF THE DOWNTOWN AREA, BUT THERE'S STILL POCKETS THROUGHOUT THAT ARE STILL LACKING IN GROWTH AND INVESTMENT THAT MIGHT BENEFIT FROM MORE INFRASTRUCTURE.

AND THEN SOMETHING WE WANT TO TALK ABOUT IN THIS PLANNING PROCESS IS WHY WE LOOKED AT A LOT OF INCENTIVES TO JUST INVEST IN NEW PROPERTY OR REHABILITATE PROPERTIES WHEN WE HAVEN'T REALLY CONSIDERED AS INFRASTRUCTURE OR INVESTING IN PARKS.

AND MAYBE IT'S THE SANTA FE DEPOT OR SOME OF THOSE THAT HAVE SAT OUT THERE AND NOT SEEING THE LEVEL OF INVESTMENT THAT'S NEEDED TO, TO REALLY MOVE IT FORWARD. SO THERE MAY BE PARTICULAR PUBLIC INFRASTRUCTURE PROJECTS THAT WE HAVEN'T BEEN ABLE TO CONSIDER THE PAST BECAUSE OF THE AGREEMENTS.

THIS WAS PASSED IN. OH SIX. YES. AND SO IN OH EIGHT IT'S ENACTED.

AND AND IT'S A 30 YEAR PLAN, RIGHT? SO 2030 636 IF NO ACTION HAD BEEN TAKEN, BUT THEN IT'S BEEN EXTENDED, BUT WITH A REDUCTION. SO WHAT HAPPENS IF THOSE BOARD MEMBERS JUST DECIDE LIKE, WELL, AGAINST INCENTIVES IN THIS AREA? WE DON'T WANT TO APPROVE ANY PROJECTS. YOU KNOW, WE, WE DON'T, WE DON'T LIKE THE FACT THAT LIKE PEOPLE ARE COMING DOWNTOWN AND GETTING, YOU KNOW, INFRASTRUCTURE PAID FOR OR REIMBURSED OR ANYTHING LIKE THAT.

TELL ME WHAT HAPPENS TO THE MONEY THAT THAT IS LEGALLY HELD AND CONSTRAINED IN THAT TEARS.

IT WOULD STAY THERE GROWING INTEREST UNTIL THE DECISION WAS MADE ON WHAT TO SPEND IT ON.

SO THAT MONEY IS RESTRICTED. AND FOR THOSE AREAS IN, IN THOSE TYPES OF INCENTIVES, IT CAN'T COME BACK INTO THE GENERAL FUND TO PAY FOR POLICE AND FIRE. NO. NOW, IT POTENTIALLY COULD BE USED TO PAY FOR POLICE AND FIRE LIKE EXTRA PATROLS DOWNTOWN TO DO THAT AND SEE IF THAT'S ALLOWED. SO YOU MAY HAVE SOME CONSTRAINTS, BUT LIKE OVERALL, IF YOU HAVE A HEALTHY TEARS AND IT'S REVENUE AND IT'S GROWING, THOSE BOARD MEMBERS ARE BASICALLY DIRECTED PREVIOUS MODE FROM, YOU KNOW, OTHER REPRESENTATIVES THAT THOSE MONIES ARE CONSTRAINED WITHIN THAT AREA AND THEY'RE TO BE UTILIZED TO, TO PROMOTE GROWTH.

AND REALLY THE ULTIMATE GOAL BEING TO GROW THAT TAX BASE AS MUCH AS POSSIBLE BEFORE THE ZONE EXPIRES.

SO ALL THE TAX INCREASES CAN BENEFIT. YES. OKAY.

THANK YOU. ANY OTHER QUESTIONS FOR MISTER FREEMAN? APPRECIATE IT SIR. DON'T GO FAR. RIGHT. CORRECT.

THAT TAKES US TO ITEM 4.3. WE'RE NOW MOVING ON TO ITEM 4.4 OUR COMMUNITY INVESTMENT PROGRAM.

[4.4. Community Investment Program (CIP) Update — Recently Closed/Completed Projects and Status of Ongoing Projects ]

SO TO START THIS ONE OFF, AS YOU ALL KNOW, DONNIE OF COURSE, GAVE AN UPDATE BACK IN DECEMBER.

TOUCHED ON A LOT ABOUT THE IMPROVEMENTS THAT HAVE BEEN MADE TO THE CIP PROCESS, INCLUDING A NEW OVERSIGHT COMMITTEE, HOW PROJECTS ARE VETTED, HOW THEY'RE CLOSED OUT HOW THEY PROPOSE MOVING FORWARD.

ALSO TOUCHED ON THE FUNDING CONSTRAINTS AS FAR AS OUR FIVE YEAR PLUS PLAN OF NEEDED IMPROVEMENTS AND EVERYTHING.

WE TRY TO PRIORITIZE WHEN WE COME TO HAMLET ANNUALLY FOR A CIP PLAN TO BE CONSIDERED.

WITH THAT ONE YEAR FUNDING SOURCE, WHAT I WAS ASKED TO DO BY CITY MANAGER WAS TO TAKE A HIGH LEVEL LOOK AT ALL THE DATA AVAILABLE TO TRY AND DIGEST IT IN A WAY THAT WOULD GIVE YOU ALL THE BEST INFORMATION THAT THE CURRENT STATE OF AFFAIRS OF THE FUNDING LOOKING AT VARIOUS THINGS AS FAR AS THE 24, 25 THAT YOU'RE ABOUT TO HEAR OUR AUDIT PRESENTATION TODAY, ALL OUR PROJECTS FOR THAT FISCAL YEAR AND WHAT HAPPENED TO THE REMAINING FUNDS.

SO THOSE ARE AUDITED NUMBERS BASED ON OUR ANNUAL AUDIT.

I'VE ALSO LOOKED AT FISCAL YEAR 25 AND 26. AS FAR AS WHAT'S BEEN PROPOSED TO CLOSE OUT IS BASICALLY GOING THROUGH THE PROCESS.

SOME ARE CLOSED OUT, SOME ARE STILL BEING FINALIZED.

AND WHAT WOULD HAPPEN TO THOSE REMAINING FUNDS? AND THEN LOOKING AT FISCAL YEAR 2526, AS FAR AS ALL OUR ACTIVE CIP PROJECTS, AND ALSO GIVING AN UPDATE ON SOME OF THOSE THAT MAY BE READY TO CLOSE OUT. SO BASICALLY TAKING EVERYTHING DIGESTING INTO A WAY THAT TRIES TO MAKE SENSE OF SHOWING THE OVERALL NUMBERS, WHAT FUNDS ARE AVAILABLE, WHAT'S STILL OUTSTANDING, ALSO IDENTIFYING HOW MANY ARE CITY PROJECTS VERSUS DEVELOPER PROJECTS THAT WE DON'T EVEN REALLY HAVE MONEY FOR. WE JUST END UP TAKING AN ASSET SHOWING THOSE DIFFERENCES.

BECAUSE IN THE PAST WE'D SAY WE HAVE 500 TO 600 OUTSTANDING PROJECTS.

WELL, NOT ALL THOSE ARE CITY AS FAR AS RESPONSIBILITIES.

AND ALSO TRACKING A LITTLE BIT ON THE HISTORY OF THE FISCAL YEAR, OUTSTANDING PROJECTS.

ARE WE, ARE WE CATCHING UP OR ARE WE STAYING MORE CURRENT? AS FAR AS THOSE GO. AND THEN ULTIMATELY I'VE, WHAT'S DIFFERENT FROM BONNIE'S PRESENTATION IS YOU'VE GOT A STACK OF PAPERS HERE OF ALL THE BACKUP DATA, SO YOU CAN DRILL INTO IT LATER.

[01:05:04]

THE GOAL TODAY IS NOT REALLY TO DIVE IN A PARTICULAR PROJECT.

IT'S REALLY JUST TO PROVIDE THE DATA AND GIVE YOU THE HIGH LEVEL OVERVIEW. AND THEN IF THERE'S CERTAIN PROJECTS, YOU WANT US TO TAKE A DEEPER DIVE IN OR TRACK A LITTLE BIT MORE DETAIL, WE'RE HAPPY, HAPPY TO DO THAT.

SO AS FAR AS FISCAL YEAR 12, WE'RE TALKING ABOUT ANNUAL CLOSE OUTS.

WE HAD 159 CLOSED PROJECTS IN THE ANNUAL AUDIT.

THE MAKE UP OF THAT IS 46% OR 73 PROJECTS BEING C PROJECTS.

THE REMAINDER 86 PROJECTS, OR 54% WERE THOSE NON CITY DEVELOPER PROJECTS.

THAT COULD BE A WATER TAP. IT COULD BE A HYDRANT.

IT COULD BE ROADS OR WATER AND SEWER AND SUBDIVISIONS BEING DEVELOPED THAT JUST SO HAPPENED TO COME ONLINE.

THEY GAVE US A FINAL VALUE AND WE CAPITALIZED IT FOR NOW DEPRECIATING ASSET ASSET ON OUR BOOKS AND DOLLAR AMOUNTS PAYS A LITTLE BIT OF A DIFFERENT STORY OF THE BREAKDOWN. 85% OF THE DOLLAR AMOUNT OF CLOSED PROJECTS OR CITIES.

SO WE CLOSED BUDGET WISE, $104 MILLION WORTH OF PROJECTS IN THAT FISCAL YEAR.

NOW THOSE MAY HAVE TAKEN MULTIPLE YEARS TO GET TO THAT POINT THAT THEY WERE READY TO CLOSE OUT.

BUT THAT WAS THE FINAL, FINAL NUMBER OF THE BUDGET OVERALL OF THE COMPLETED PROJECTS.

NOW, ON THE DEVELOPER SIDE, IT WAS 18.3 MILLION, OR ABOUT 15% OF THE OF THE PIE.

SO WITH THOSE 73 CLOSED PROJECTS THAT ARE SITTING ONLY, THIS IS THE BREAKDOWN BY FUND.

SO WE'VE GOT DRAINED UTILITY FUND, WATER AND SEWER, AIRPORT FLEET SERVICES IT AND GENERAL FUND.

GENERAL FUND IS NOT AS CLEAR AS IT MIGHT SEEM.

IT'S ACTUALLY THAT CIVIC CENTER HOT TAX AND IT IT'S GOT OUR SOLID WASTE PROGRAM THAT COULD HAVE BOND DOLLARS THAT ARE RESTRICTED TO SALT WASTE, AND IT CAN ALSO HAVE OTHER OTHER RESTRICTIONS THAT WE HAVE TO TAKE NOTE OF.

SO THAT'S WHY YOU SEE LITTLE ASTERISKS UP AND DOWN MY CHART.

IF YOU DRILL DOWN INTO SOME OF THOSE NUMBERS THAT YOU'LL SEE THE BREAKDOWN OF THE SPREADSHEETS.

BUT DRAINAGE UTILITY FUND HAVE AN OVERALL BUDGET OF 7.7 MILLION.

NO FUNDS WERE TRANSFERRED TO OTHER PROJECTS, BUT WE DID HAVE A LITTLE BIT RELEASED TO RESERVES OF 180,000.

AND THEN THE LAST COLUMN IS ALSO RELEASING RESERVES, BUT THOSE ARE THE MORE RESTRICTED FUNDS.

IT WAS EITHER DEBT ISSUED OR A PARTICULAR TAX NOTE OR CERTIFICATE OF OBLIGATION THAT THOSE FUNDS APPLY TO.

SO IT DOESN'T MEAN WE CAN'T USE IT. IT JUST HAS TO MEET A QUALIFYING PROJECT DEPENDING ON THOSE BOND COVENANTS AND WHAT IT WAS ISSUED FOR.

WATER AND SEWER SYSTEM FUND HAD AN ORIGINAL BUDGET OF 41 MILLION RELEASED, A RESERVES FUND BALANCE OF 9.4, AND THEN JUST SHY OF 12000 TO THE RESTRICTED RESERVE FUND.

AIRPORT FUND 2.7 MILLION ORIGINAL BUDGET AND THEN TRANSFERRED TO OTHER PROJECTS 170 000.

THAT'S MAINLY JUST TRANSFERRING FROM ONE PRIORITY PROJECT WITHIN THE AIRPORT FUND FOR ANOTHER.

YOU'LL ACTUALLY HAVE AN ITEM TODAY FOR CONSIDERATION TO DO SIMILAR SIMILAR TRANSFERS FOR FLEET SERVICES FUND.

5.8 MILLION. ONLY 12,000 RESTRICTED RESERVE RELEASED.

IT LOOKS LIKE 3.1 MILLION 41,000 RELEASED TO RESERVES.

AND THE GENERAL FUND HAD AN OVERALL PROJECT BUDGET OF 42 MILLION AND RELEASED TO 718,000 RESERVES AND 3.5 MILLION TO RESTRICTED RESERVES.

AND THEN WE HAD FUNDS TRANSFERRED TO OTHER PROJECTS AT 1.8 MILLION.

THE MAJORITY OF THOSE WERE PARKS ANY ACCOUNTS THAT WERE TRANSFERRED.

SO THEY START IN ANY ACCOUNT THEY WANT, WHETHER IT'S A PLAYSCAPE OR A PARKING LOT PROJECT.

THEY THEY TAKE THE MONEY FROM YOU AND TRANSFER IT TO THOSE PARTICULAR PROJECTS.

AS FAR AS CLOSED OUT CITY ONLY PROJECTS STARTING IN FISCAL YEAR 2526.

THAT'S THE YEAR WE'RE IN. THAT'S THE WORK THAT DYING HAS.

HIS TEAM HAS BEEN WORKING ON WILL BE TAKEN AS WE'VE UPDATED THROUGH APRIL 2026.

SO THE NUMBERS LOOK A LITTLE BIT DIFFERENT. WE'VE IDENTIFIED 77 PROJECTS TO CLOSE AND THEN A BUDGET OF ABOUT 70 77.3 MILLION.

IN ADDITION TO THAT CLOSEOUT NUMBER THAT YOU'LL SEE IN MY DOLLAR AMOUNTS IS WE HAD TWO PROJECTS THAT WE WERE ABLE TO RELEASE PARTIAL FUNDING BECAUSE THEY'RE STILL ACTIVE, BUT WE KNOW WE HAVE A BETTER IDEA OF WHAT THAT EXPENSE IS GOING TO BE.

SO WE HAVE 4.03 MILLION RELEASED FOR WATER AND SEWER, AND THEN 1.57 MILLION RELEASED FOR DRAINAGE.

THESE ARE THE BREAKDOWN OF THE FOUR FUNDS INVOLVING THIS ONE.

DRAINAGE UTILITY FUND HAD AN ORIGINAL BUDGET.

OF THOSE PROJECTS OF 9.9 MILLION, 5.5 RELATES TO RESERVES 1.5 RELEASED TO RESTRICTED RESERVES.

WATER AND SEWER DID HAVE ONE TRANSFER OF 200 000 TO A PROJECT, 16.1 RELEASED TO RESERVES AND 1.6 TO RESTRICTED RESERVES FOR THAT LINE ITEM. IT JUST A SMALL AMOUNT 5500.

[01:10:01]

AND THEN GENERAL FUND HAD 2.7 RELEASED RESERVES, AND THEN A -889 THAT WAS CLOSED OUT PROJECTS THAT HAD A DEFICIT.

I BELIEVE THE MAJORITY OF THAT ONE WAS ACTUALLY A HOT TAX CIVIC CENTER RELATED PROJECT.

MOVING FORWARD, YOU'VE GOT OUR CURRENTLY ACTIVE PROJECTS.

SO THROUGH MARCH 2026, WE STILL IDENTIFY 441 ACTIVE CIP PROJECTS.

BUT WHEN YOU BREAK THAT DOWN, WE HAVE 266 OR 61% OF IT THAT ARE CITY ONLY PROJECTS THAT ARE, THAT ARE CURRENTLY ACTIVE IN VARIOUS STAGES, AND THEN SOME OF THOSE ARE ACTUALLY READY TO BE CONSIDERED FOR CLOSING AS WELL.

THE BUDGET INVOLVED OF ALL THOSE PROJECTS FOR THE CITY ONLY SIDE OF $631 MILLION, OR 91% OF THE OVERALL DOLLAR AMOUNT.

SO IN THIS BREAKDOWN, I DID GO AHEAD AND SHOW YOU THE BREAKDOWN BY DEPARTMENT.

AND SO YOU CAN SEE KIND OF WHERE ALL THE PROJECTS PLAY OUT.

OUR BIGGEST PROJECTS, OF COURSE, BY QUANTITY IS THE WATER AND WASTEWATER DEPARTMENT.

61 PROJECTS, AIRPORTS GOT QUITE A FEW AT 31 DRAINAGE OF 15.

AND THEN IT GOES DOWN FROM THERE. BUT WHAT THIS SHOWS YOU IS OUR, OUR ORIGINAL BUDGET TO GO INVEST IN THOSE AREAS.

AND THEN WE DO HAVE A FEW THAT ARE OLDER UTILITIES PROJECTS.

WE DO STILL HAVE THE STREET JAIL BOND FOR GEORGIA STREET.

THAT'S ACTUALLY BEING WORKED ON AS SOME OTHER EXAMPLES.

AND THEN THIS IS JUST THE NEXT NEXT FEW. ANOTHER GOOD EXAMPLE, 2019, 2020, THE ARMY PROJECT STILL ACTIVE.

IT SHOULD BE COMPLETED THIS YEAR, BUT WE KNEW THAT WOULD BE A 4 OR 5 YEAR PROJECT JUST BASED ON THE SCOPE AND COST OF HEALTH.

SO THAT JUST GIVES YOU A LITTLE MORE INFORMATION ON SOME OF THOSE THAT ARE THAT LONGER TERM ACTIVE PROJECTS.

AS FAR AS SOME UPCOMING CHANGES GOING THROUGH THE THE LIST YOU'LL SEE IN THE SPREADSHEET, THE ONES HIGHLIGHTED BLUE WITH THE UPDATES FROM STAFF ARE THE ONES THAT I'VE IDENTIFIED THAT ARE GETTING READY TO CLOSE OR PROCEEDING DOWN THAT PATH OVER THE NEXT FEW MONTHS.

GENERAL FUND HAS ANOTHER 33 READY TO CLOSE, AND I IDENTIFIED SOME POTENTIAL FUNDING THERE THAT CAN BE GOING BACK TO FUND BALANCE.

STREETS HAS THREE SOLID WASTE AT CIVIC CENTER, BOTH AT 171.

WATER UTILITIES SIX AIRPORT 11 THAT ARE ACTUALLY ON TODAY'S AGENDA FOR TRANSFERS.

DRAINAGE THREE ARRAY TO CLOSE WITH 1.1 MILLION GOING BACK TO RESERVES.

AND THEN IT HAS ONE READY TO CLOSE. SO JUST UP TO DATE NOW WE'VE GOT 60 THAT ARE VERY CLOSE TO CLOSING THAT BRING US CLOSER TO 206 OUTSTANDING.

SO MUCH MORE MANAGEABLE NUMBER IS SHOWING THAT THE IMPROVEMENTS THAT DIANE HAS PUT IN PLACE ARE SHOWING PROGRESS, THAT WE'RE REALLY BETTING ALL OUR OUTSTANDING PROJECTS SEEING WHAT'S STILL NEEDED.

AND OF COURSE, HISTORICALLY THEY WOULD SIT THERE.

MAYBE THEY DIDN'T HAVE ENOUGH MONEY TO COMPLETE THAT PROJECT.

SO IT WOULD BE IT'D BE TRANSFERRED TO ANOTHER ONE.

NOW ALL OF THEM CLOSED. SO COME BACK FOR ANOTHER BITE AT THE APPLE GOING THROUGH CITY COUNCIL FOR CONSIDERATION, EITHER THROUGH THE CIP PROCESS OR AS SOMETHING COMES UP THAT NEEDS TO BE ADDRESSED MORE QUICKLY.

SO THE FINAL SLIDE IS JUST THE FINAL TAKEAWAYS AND ALL, ALL THE INFORMATION I'VE SHARED AS FAR AS THE REMAINING NUMBERS I'VE GOTTEN SORTED BY 24, 25, 25, 26 PENDING AND THEN THE 2526 ACTIVE THAT WE'RE STILL REGULARLY EVALUATING TO SEE WHAT'S UPCOMING AND READY TO CLOSE THE 2425 IS A VERY SOLID NUMBER. THE NEXT TWO ARE, OF COURSE, PAINTING THE CLOSURE PROCESS.

SO FINAL PAYMENTS COMING THROUGH, GOING THROUGH THE FINAL, FINAL CLOSEOUT PROCESS.

BUT ULTIMATELY WE'RE LOOKING AT 8.6 MILLION POTENTIALLY IN DRAINAGE UTILITY FUNDS, 27 MILLION WATER AND SEWER FLEET SERVICES 12,000 IT, 46,000 IN GENERAL FUND, 7.5 FOR A TOTAL OF 43 MILLION.

WITH THE CAVEAT OF GOING THROUGH THE BUDGETING PROCESS, YOU OF COURSE HAVE TO CALCULATE RESERVES AND YOUR CASH FLOW EACH YEAR, WHICH WE'RE COMING UP ON GETTING THAT DONE FOR THE UPCOMING BUDGET.

SO WE'LL BE ABLE TO IDENTIFY HOW MUCH OF THIS THIS FUNDING IS CONTRIBUTED TO MAINTAINING OUR MINIMUM RESERVES VERSUS WHAT'S THE EXCESS THAT YOU'LL BE ABLE TO PLUG INTO CIP PROJECTS GOING INTO NEXT YEAR. FOR EXAMPLE, WATER AND SEWER SYSTEM FUND 25, 26 OR 17 MILLION, OUR TYPICAL RESERVE REQUIREMENT FOR WATER AND SEWER, I BELIEVE THIS YEAR IS CLOSE TO 21 MILLION, JUST FOR COMPARATIVE COMPARATIVE PURPOSES. AND THEN, AS I MENTIONED, I DIDN'T PUT THE ASTERISKS ON THIS ONE, BUT LIKE THE 7.5 GENERAL FUND, A FEW MILLION OF THAT IS RESTRICTED TO EITHER SOLID WASTE OR OTHER OTHER COMPONENTS.

SO IT'S NOT NECESSARILY UNRESTRICTED GENERAL FUND LIKE WE TYPICALLY SPEAK ON.

SO THAT IS THE FINAL SLIDE. I'M HAPPY TO ANSWER ANY QUESTIONS OR TRY TO ANSWER ANY QUESTIONS.

[01:15:03]

QUESTIONS. COUNCIL. COUNCILMAN REED ANYTHING FROM YOU SIR? NO, SIR. OKAY. LET'S LET ME GO BACK WITH YOU HERE, MR. FREEMAN, ON A FEW THINGS. SO WHEN WAS THE LAST TIME THAT YOU GUYS DID THIS? THAT STAFF WENT THROUGH AND CLOSED OUT PROJECTS, IDENTIFIED SAVINGS, BROUGHT IT BACK TO COUNCIL FOR REAPPROPRIATION.

SO I THINK WE REGULARLY GO THROUGH AND CLOSE PROJECTS, BUT I THINK AS FAR AS BRINGING LIKE A FULL, FULL LOOK, IT'S ONLY REALLY BEEN THE LAST SIX MONTHS BECAUSE TYPICALLY IT WOULD JUST FLOW THROUGH THE BUDGET PROCESS.

WE WOULDN'T REALLY IDENTIFY WHICH PROJECTS ARE CLOSING OR WHERE SAVINGS TOOK PLACE, BUT IT WOULD ULTIMATELY COME BACK FOR A FINAL VOTE.

BUT THIS THIS IS A MORE INTENTIONAL PROCESS NOW OF IDENTIFYING THE WHEN AND WHERE IT TAKES PLACE AND BRINGING IT BACK MORE PROACTIVELY.

OKAY, SO COUNCIL COMES TOGETHER AND THEY APPROPRIATE THE BUDGET.

THEY TAKE THE FUND BALANCE THAT YOU GUYS HELP IDENTIFY AND THEY SAY PROJECT X MILLION DOLLARS AND IT WOULD GO OVER THERE.

THAT PROJECT WOULD GO AND GET PERFORMED. THOSE MONIES, LET'S SAY, HAD A SAVINGS OF SAY 250, 000 INSTEAD OF THAT 250,000 COMING BACK TO COUNCIL THIS, YOU KNOW, PREVIOUS PRACTICE, RIGHT? IT WOULD JUST BE IDENTIFIED AS SAVINGS AND THEN STAFF WOULD KNOW IT WAS THERE.

THEY WOULD THEN UTILIZE IT FOR WHATEVER THE NEEDS WERE.

BRING A RECOMMENDATION TO COUNCIL DURING AN EXISTING BUDGET AND ASK FOR COUNCIL TO APPROVE IT, BUT NOT NECESSARILY APPROPRIATE THAT MONEY REALLY NOT GO INTO DETAIL OF WHERE THAT MONEY CAME TO BE.

IT WOULD JUST BE IDENTIFIED FUNDS SAVED FROM SOMEWHERE WITHIN THE SYSTEM.

SO THERE WAS REALLY NO TRACKING OF OF THOSE MONIES SPECIFICALLY, EXCEPT FOR WHEN YOU CLOSE OUT THOSE PROJECTS.

AND THEN WHEN YOU CLOSE THEM OUT, YOU CAPITALIZE THEM.

SO THEY END UP ON AN AUDIT, RIGHT? SO THE POINT THAT I'D LIKE TO ESTABLISH IS, IS WHAT THIS CURRENT STAFF IS DOING HASN'T BEEN DONE BEFORE.

AND WHAT YOU'RE DOING RIGHT NOW IS KIND OF ABOVE AND BEYOND, YOU KNOW, AND I DON'T KNOW, MR. PATH, DO WE HAVE A POLICY FOR REAPPROPRIATION OR ARE WE JUST WORKING UNDERNEATH A PROCEDURE NOW OF REAPPROPRIATION? YES. MR. HOOPER ACTUALLY DRAFTED A POLICY THAT I'VE APPROVED.

YES. SO, MR. DOOLEY, SPEAK TO THAT, I BELIEVE.

OKAY. AND WE DON'T HAVE TO JUMP INTO THAT, BUT THAT'S GREAT TO KNOW IT.

SO NOW WE'LL ACTUALLY HAVE A POLICY THAT FORMALIZES THAT COUNCIL'S DUTY IS NOT JUST TO APPROPRIATE A BUDGET, YOU KNOW, AND THEN FORGET ABOUT THE MONEY. COUNCIL SHOULD BE REQUESTING STAFF TO RUN THOSE NUMBERS, BRING BACK THE ACTUALS, TAKE THE NET SAVINGS OR THE COST SAVINGS, DEPENDING ON WHAT IT WHAT IT DOES.

AND THEN FOR COUNCIL TO RE-APPROPRIATE THAT MONEY SO THAT IT COMES FOR AN APPROVAL.

AND THEN WE HAVE A VERY HEALTHY SIP AT THAT POINT.

RIGHT. SO I KNOW YOU GUYS COUNCIL LOOKED AT ME WEIRD LAST MEETING, LIKE EVERYBODY'S BODY LANGUAGE WAS KIND OF LEANING BACK AND, AND I DIDN'T REALIZE, LIKE, I'VE BEEN HERE SWIMMING IN THIS, YOU KNOW, THESE WEEKS FOR A MINUTE.

AND SO FORGIVE ME FOR BEING PASSIONATE, BUT LIKE, I REMEMBER SITTING THROUGH MEETINGS, HEY GUYS, WE HAVE MONIES THAT ARE GOING TO BE AVAILABLE IF WE'LL CLOSE OUT ALL THESE PROJECTS. MR. PAT TOOK THE INITIATIVE. YEAH, WE'VE GOT A LOT OF PROJECTS WE NEED CLOSED OUT.

MR. HOOPER DUG INTO IT, BUT THE WHOLE TIME I THINK WE WERE STATING LIKE, THERE'S NO MONEY LEFT.

RIGHT. WE HAVE $43 MILLION IDENTIFIED ON THIS SHEET.

IS. IS THAT CORRECT? YES, SIR. OKAY. AND THAT DOESN'T INCLUDE HOW MANY ARE ONGOING THAT WILL GO INTO THAT THAT AREN'T INCLUDED IN THOSE PROJECTED CLOSURES. LIKE WE HAVE ANOTHER $631 MILLION WORTH OF PROJECTS.

HOW MANY OF THOSE ARE 240, 240 MILLION REMAINING CITY FUNDING OF THOSE PROJECTS CLOSE OUT, THERE MIGHT BE REMAINING FUNDS, RIGHT? SO, SO DID ANYBODY RUN A PERCENTAGE AVERAGE OF HOW WE'RE DOING IN MANAGING THESE DOLLARS? BECAUSE THAT ACTUALLY IS A BIG WIN. I KNOW, I KNOW ON THE GOVERNMENT ACCOUNTING SIDE, YOU TRY NOT TO EVER SAY THIS, BUT WE PRIVATE CITIZENS, WE GREATLY APPRECIATE WHEN YOU BRING MR. DANFORTH, WHEN YOU BRING $1 MILLION PROJECT IN FOR 750, IT SAYS, THERE'S A GUY I WANT ON MY TEAM.

HE KNOWS HOW TO RUN A PROJECT. HE MAKES SURE THOSE GUYS ARE CRACKING THE WHIP OUT THERE.

THEY'RE BRINGING IT BACK. THEY'RE NOT WASTING THE MONEY. BUT WE HAVE NEGLECTED TO KIND OF DO THAT.

AND SO LIKE, IN A GOOD WAY, I'D LOVE TO SAY, DOES ANYBODY KNOW THE PERCENTAGE OF THAT 240 MILLION THAT WE WOULD PROJECT CONSERVATIVELY THAT WE'VE BEEN BRINGING THESE PROJECTS IN UNDER BUDGET? I THINK BASED ON OUR PAST HISTORY, THAT WOULD BE A TOUGH PERCENTAGE TO COME UP WITH.

A LOT OF THESE CLOSED OUT PROJECTS WERE SOME OF THEM WE JUST HAD TO CANCEL DETROIT PRESERVES, FOR EXAMPLE. SOME OF THEM WERE UNDER BUDGET TO BEGIN WITH, SO MAYBE WE DIDN'T START.

I THINK WE'D HAVE TO IDENTIFY ACTUAL COMPLETED PROJECTS TO COMPARE HOW MUCH SAVES WERE, BUT IT'D BE A LONGER EFFORT TO IDENTIFY THAT.

[01:20:09]

OKAY. BUT I THINK MOVING FORWARD, OUR GOAL IS TO NOT HAVE AS MANY SIPS SITTING THERE, UNDERFUNDED OR NOT MOVING FORWARD.

SO YOU'RE GOING TO HAVE JERRY ON TOP OF ALL THESE PROJECTS, MAKING SURE THEY'RE PROGRESSING JUST LIKE YOU DID IN THIS UPDATE MOVING FORWARD.

SO WE MORE QUICKLY KNOW HOW THE PROJECT'S GOING TO END VERSUS SOME OF THESE THAT ARE SITTING OUT THERE FOR MULTIPLE YEARS.

SO THE TASK I'VE GIVEN STAFF IS TO TRY, AS COUNCIL GIVES US OPPORTUNITY TO DO THAT EACH YEAR.

MY GOAL FOR STAFF IS TO SPEND TO GET THOSE DONE WITHIN 12 TO 18 MONTHS.

AND SO INSTEAD OF US ACCRUING THEM OVER YEARS, WE GET THEM DONE RAPIDLY WHILE THEN GOING BACKWARDS IN TIME AND GETTING THE ONES THAT ARE STILL OUT THERE. SO WE DON'T WE DON'T WANT TO ACCRUING LIST OF PROJECTS.

WE WANT TO KEEP THEM ROLLING OUT. YES, SIR. MR..

I THINK THE FIRST NUMBER I GOT MAY HAVE BEEN MORE THAN THIS, BUT 453 OPEN PROJECTS.

WHEN YOU WHEN YOU GOT AHOLD OF THIS, THERE WERE 453.

NOW, A LOT OF THOSE WERE DEVELOPER TABS, THINGS LIKE THAT, BUT STILL A TREMENDOUS VOLUME FOR, FOR YOU GUYS TO GO THROUGH. SO WE LOVE WHAT'S GOING ON.

WE ALSO LOVE THE GOOD NEWS THAT WE CAN VERIFY AND REPORT THAT THERE ARE SOME MONIES LEFT OVER HERE THAT THIS COUNCIL WILL BE ABLE TO PUSH FORWARD INTO INFRASTRUCTURE AND, AND CITY NEEDS. SO IN, IN THAT WAY, I THINK WHAT WE'RE, WHAT WE'RE TRYING TO SAY IS, IS THOSE MONIES THAT YOU'VE IDENTIFIED, THOSE AREN'T SITTING SOMEWHERE IN A RESERVE BALANCE AND THEY'RE NOT A CALCULATED IN OUR RESERVE FUNDS.

THOSE MONIES HAVE BEEN SET ASIDE FOR A CIP AS IF YOU WERE GOING TO POTENTIALLY SPEND ALL OF THAT.

THOSE ARE NOW SAVINGS THAT WILL COME BACK IN ADDITION TO EXISTING RESERVES THAT ALREADY MEET MINIMUMS, RIGHT. WITH THE EXCEPTION OF THE WATER UTILITY FUND, THAT HAS TO BE FURTHER EVALUATED BECAUSE WE DID HAVE THAT ERROR IN BASICALLY FUNDING A PROJECT THAT WE SHOULDN'T HAVE FUNDED. SO MESSED UP OUR CALCULATION, BUT ULTIMATELY THAT WILL BE FLESHED OUT IN THE NEXT COUPLE OF MONTHS TO THE BUDGET.

OKAY. AND I LOVE THE FACT THAT OUR, OUR AUDIT AUDITOR CAN SPEAK TO SOME OF THAT.

AND SO THAT'LL HELP US IN THE SEWER AND WATER, WHETHER OR NOT YOU HAVE A TRIVIAL.

BUT I DID WANT TO HAVE A CARRY OUT THE. 2425 CLOSE THAT 14 MILLION.

TECHNICALLY, THAT WOULD HAVE BEEN WHEN WE WERE ESTIMATING TO GO INTO CURRENT YEAR SEE IP.

SO MORE REALISTIC IS THE 26 MILLION, THE 2.5 MILLION AVAILABLE FOR THIS SUMMER'S DISCUSSION, UNLESS IT SHOWS DIFFERENTLY ONCE WE CALCULATE OUR OUR RESERVES.

OKAY. YEAH. NO, I THINK THAT THAT'S SOMETHING THAT WE CAN GET DOWN TO AND, AND HAVE CONFIDENCE IN KNOWING WHAT WAS THERE AND HOW WE FINISHED IT IN THAT POSITION FOR CASH. SO WE HAVE A REAPPROPRIATION POLICY COMING.

LOVE THAT. THANK YOU, MR. HOOPER. WE HAVEN'T BEEN DOING THIS HISTORICALLY.

WE'RE NOW DOING IT. THE NET DIFFERENCE WAS SOMETHING THAT I GOT.

AND SO I DON'T KNOW, MAYBE THIS WAS THE, THE MEETING YOU AND I HAD.

YEAH. OKAY. SO WHERE YOU'RE WHERE YOU'RE LOOKING AT THIS WAS A, A REPORT THAT WAS JUST GENERAL CONSTRUCTION FUND AND YOU HAD YOUR BUDGETED EXPENDITURES AND THEN YOU HAD YOUR REMAINING CITY FUNDING.

CAN YOU GET TO THAT PAGE 32 MILLION. YES. 32.

THERE WE GO. YEAH, I'LL PUT ON YOUR READERS SO Y'ALL CAN SEE THAT THAT 32 MILLION IF, IF I LOOK AT SEE YOU'RE TRACKING THE ACTUAL EXPENDITURES TO DATE.

AND, AND I KNOW THAT YOU KNOW, MR. DANFORTH BRINGING IN LIKE THE BUILDERS AND OTHER SOFTWARE GREATLY HELP US TRACK THESE PROJECTS.

BUT ON THIS PARTICULAR REPORT, JUST TO KEEP IT SIMPLE, YOU HAD 129 MILLION IN BUDGET OF EXPENDITURES, AND THEN THE ACTUAL EXPENDITURES TO DATE WERE 71 MILLION, WHICH WOULD GIVE US A NET DIFFERENCE OF 58.

AND I KNOW WHAT YOU'RE SAYING. THERE IS REMAINING CITY FUNDING OF 32.

THAT'S ACCURATE. HOWEVER, WHAT THAT DOESN'T BRING IN IS THE PORTION OF OUTSIDE FUNDING THAT WE ALREADY KNOW WE'RE GOING TO GET.

SO WE ARE GOING TO HAVE ADDITIONAL MONIES IN IN ADDITION TO THAT.

32. SO JUST WANT MY PUBLIC TO HEAR THAT WE ARE DOWN INTO THE WEEDS ON THIS, AND WE ARE MAKING SURE THAT WE'RE WATCHING THESE MONIES.

THE STAFF HAS A CLEAR DIRECTIVE ON EXACTLY WHAT THEY NEED TO BE HOLDING THE LINE ON.

AND SO LIKE THAT NET DIFFERENCE WILL BE VERIFIED.

RIGHT. BUT, BUT IT, IT ACTUALLY CALCULATES TO 58 MILLION IN THAT GENERAL FUND.

NOW, EVEN IF WE ONLY RUN A 10% COST SAVINGS, THAT'S $5.8 MILLION.

I HAVE WORKED A BUDGET TO DEATH OVER SEVEN LONG DAYS TO FIND A FEW PART TIME POSITIONS FOR US TO COME UP WITH $1 MILLION WORTH OF EFFICIENCIES IN THE GENERAL FUND. AND HERE, WHAT WE'RE WHAT WE'RE ABLE TO SEE IS, IS YOU GUYS HAVE GOOD AMOUNTS OF HEALTHY DOLLARS TO GO AND DO PROJECTS. WE HAVE GOOD, HEALTHY BUDGETS. WE HOPE WE CAN MANAGE THOSE AND THEN GET TO MORE PROJECTS.

[01:25:06]

THAT IS JUST THE CIP THAT'S YOUR CONTINUING IMPROVEMENT PROJECTS, RIGHT? OR YOUR CONSTRUCTION IN PROGRESS. THAT'S NOT EVEN TALKING ABOUT THE GENERAL FUND REOCCURRING BALANCES THAT WE'VE ADDRESSED PREVIOUSLY WITH MISS KATRINA.

SO I'M THANKFUL FOR EVERYTHING THAT WE'RE DOING THAT YOU HAD SAID THAT WE HAVE A FEW OTHER PROJECTS IF WE WANT TO DIG DEEPER IN, I DEFINITELY DO. SO ONE IS THE, THE PROCEEDS FROM THE LAWSUIT ON THAT REVENUE.

AND MR. FREEMAN, KNOW THESE ARE SURPRISING BECAUSE YOU AND I HAVE TALKED THROUGH ON THIS, AND NOT THAT I NEED TO GET THERE TODAY, BUT WE HAVE PROCEEDS THAT CAME INTO THE ENTITY FROM A LAWSUIT THAT WE HAD ALREADY MITIGATED IN IN OUR EXISTING FUNDING.

SO WHETHER WE SET UP A PROJECT AND WE PAY FOR IT ALONG THE WAY OR WE DIDN'T HAVE IT SET UP, BUT WE PAID IT OUT OF CASH, WE ENDED UP GETTING MONIES IN AND I DON'T HAVE THE NUMBERS, SO I WON'T THROW IT OUT THERE.

BUT IT'S, YOU KNOW, NORTH OF 16, 16 MILLION. SO THAT'S A, THAT'S A NUMBER I WANT TO SEE.

DO WE STILL HAVE THAT MONEY SITTING SOMEWHERE? DOES THAT COME INTO OUR RESERVE BALANCE? THE OTHER THING IS THOSE ARPA FUNDS AND WE, WE HAD THOSE CLASSIFIED AS REVENUE RECOVERY.

AND SO THAT WAS SOMEWHERE AROUND $24 MILLION.

AND SO WE NEED TO KNOW, LIKE, WHERE ARE THOSE MONIES UTILIZED DURING THE COVID? KIND OF AFTER THE, THE TIME AFTER COVID AND THEN DID WE STILL REVENUE MONEY THAT WE HAVEN'T PUSHED INTO A FUND BALANCE? OR IS IT PART OF THESE FUND BALANCES THAT YOU HAVE? SO I NEED OUR PUBLIC TO HEAR THAT. LIKE THERE'S, THERE'S SEVERAL PROJECTS THAT WE WANT TO SAMPLE AND GET INTO.

I THINK THERE WERE TEN THAT I PULLED. AND, YOU KNOW, I APPRECIATE STAFF'S WILLINGNESS TO MEET.

I APPRECIATE THE THE PRODUCTIVITY YOU'VE HAD ON.

I FEEL LIKE WE'VE BEEN HERE WAY TOO LONG, BUT AT THIS POINT, I WANT TO KEEP IT SIMPLE.

THE, THE CITY IS LOOKING AT REAPPROPRIATION PROCESS THAT HOPEFULLY WILL BRING CLOSE TO $50 MILLION BACK TO COUNCIL IN ADDITION TO EXISTING RESERVE BALANCES AND WE NEED TO GO PUT THAT MONEY TO WORK.

WE HAVE RESERVE BALANCES FOR A REASON. WE DON'T HAVE THREE RESERVE BALANCES.

WE DON'T PARK MONEY ON THE SIDE. WE EVEN HAVE AN ARBITRAGE ISSUE, WHICH FOR THOSE THAT DON'T KNOW, THAT JUST MEANS YOU'VE GOT MONEY PARKED THAT'S ACCRUING INTEREST GREATER THAN WHAT YOU'RE LEGALLY ALLOWED TO.

AND THEN WE HAVE TO MAKE A PAYMENT AND PAY THAT MONEY BACK.

AND SO IN MY CURRENT AUDIT, YOU'LL SEE SOME ARBITRAGE THAT WE MAY ASK MR. KIRSHNER ABOUT. AND SO WE CAN'T PARK THE MONEY.

IT'S YOUR MONEY. WE HAVE NOTHING. THE CITY STAFF AND THE CITY COUNCIL.

WE DON'T HAVE A DOLLAR. IT IS ALL YOUR MONIES THAT YOU'VE ENTRUSTED INTO THIS SYSTEM FOR US TO STEWARD.

AND SO WE HAVE GREAT RESPONSIBILITY, STEWARDSHIP.

AND THIS TODAY IS A GOOD EXAMPLE OF WHAT STEWARDSHIP LOOKS LIKE.

AND I'M THANKFUL FOR IT. AND I APPRECIATE THE OPPORTUNITY TO SPEAK TO IT, BUT I WANT TO KEEP GOING AND REALLY GET, YOU KNOW, NUTS AND BOLTS DOWN ON ON EVERY DOLLAR AND MAKE SURE WE'RE PUSHING IT BACK OUT.

SO I SAW YOUR SLIDE UP COUNCIL MEMBER SIMPSON.

LET ME JUST MAKE SURE I'M TRACKING. SO PREVIOUSLY WHEN WE HAD CIP PROJECTS, CAPITAL IMPROVEMENT PROJECTS, COMMUNITY IMPROVEMENT PROJECTS, WE COMPLETED THOSE AND MONEYS WERE LEFT OVER.

HOW DID THAT PREVIOUS BEFORE WE STARTED THIS PROCESS, WHAT HAPPENED TO THAT MONEY? SO WHAT HAPPENED PREVIOUSLY IS THAT MANY TIMES IT WOULD BE TRANSFERRED TO ANOTHER EXISTING PROJECT.

OKAY. INSTEAD OF GOING TO RESERVES TO BASICALLY BE BROUGHT TO COUNCIL TO IN THE ANNUAL BUDGET PROCESS TO DETERMINE WHAT THE PARTICULAR PROJECT WOULD BE, AND THEY WOULD JUST COME TO A CITY COUNCIL MEETING AND GET VOTED ON LIKE A PROJECT WITHOUT MAYBE NECESSARILY KNOWING WE TRANSFERRED MONEY.

SO IT WAS SO IT WOULD GO TO A PROJECT THAT WAS NOT ORIGINALLY IN THE CIP PROJECT LIST, POSSIBLY, POSSIBLY NOT IN THE LIST, OR IT'S ANOTHER ONE THAT WAS UNDERFUNDED.

OKAY. SO IT COULD HAVE ALREADY BEEN THAT PROJECT COULD HAVE ALREADY BEEN APPROVED. BUT THEN WE LOOKED AT IT AND THEY WOULD COME BACK TO COUNCIL. CORRECT. THAT. CORRECT.

AND SO I'M TRYING TO FOLLOW THE. AND SO NOW WHAT WE'RE PROPOSING IS WE SWEEP THIS OUT ONCE A YEAR.

WE SWEEP IT OUT QUARTERLY AS PROJECTS CLOSE. WE WON'T, WE WON'T DO ANY TRANSFERS.

IT GOES STRAIGHT TO RESERVES ULTIMATELY TO COME BACK IN THE ANNUAL CIP PROCESS, BUT COULD COME IN THE INTERIM IF THERE'S A NEED OR A MAJOR PROJECT THAT WE NEED TO FIND MONEY FOR, IF WE KNOW OUR RESERVES THAT WE CLOSED COULD BE POTENTIALLY USED.

WE'VE GOT THE 58TH STREET DESIGN PROJECT TODAY.

A PORTION OF THIS COULD COVER COVER THAT, FOR EXAMPLE.

I MIGHT ADD TO THAT TOO. SO WE'RE ALREADY MEETING IN OUR OVERSIGHT COMMITTEE.

WE'VE HAD THREE DIFFERENT MEETINGS WHERE WE'VE ACTUALLY TAKEN PROJECTS INTO CONSIDERATION,

[01:30:02]

WHERE DEPARTMENTS ARE ASKING TO TRANSFER EXCESS MONEY THAT'S LEFT IN THE CIP INTO ANOTHER PROJECT THAT THEY HAD ALREADY IDENTIFIED.

THEY GO THROUGH THAT PROCESS, THE COMMITTEE HAS TO LOOK AT THAT, HAVE DISCUSSIONS ABOUT THAT.

THEN IT GOES, OF COURSE, TO THE GRACE AND PATH, AS WE DESCRIBED BEFORE, FOR HIS APPROVAL, AND THEN WOULD COME TO COUNCIL, JUST AS YOU'RE GOING TO SEE TODAY ON SOME OF THOSE ITEMS WITH TWO MONTHS AGO IN THE AIRPORT WITH SOME TRANSFERS THAT THEY'RE GOING TO DO THERE.

SO WE THINK THE SYSTEM IS VERY, VERY REFINED NOW.

AND SO WHAT WE DO SO IN THE GENERAL FUND, WHEN WE HAVE MONEY AT THE END OF THE YEAR, WHICH WE HAVE NOT SPENT HISTORICALLY, WE HAVE SWEPT THAT MONEY INTO CIP PROJECTS FOR THE NEXT YEAR.

CORRECT? IS THAT CORRECT? AND SO WHAT WE'RE SAYING NOW IS WE'RE GOING TO TRUE UP ON A REGULAR BASIS AND BASICALLY DO THE SAME THING WITH THIS, WITH THE CIP IS, YES, YES, YOU HAVE THE ACTIVE CIPS THAT ARE KIND OF MONEY SET ASIDE.

AND THEN YOU, YOU HAVE YOUR EXTRA REVENUE AND LESS EXPENSES THAT CONTRIBUTE TO ONE TIME DOLLARS THAT CAN ALSO GO TOWARD.

YEAH. BUT, BUT THEN I GUESS IF WE'RE SIX MONTHS INTO THIS AND ALL OF A SUDDEN, I MEAN, TO ME, WHAT I CAN'T UNDERSTAND IS HOW WE'RE GOING TO HAVE THIS MONEY AND THEN DO IT IN THE SAME YEAR.

IF WE DIDN'T BUDGET IT UP FROM SIX MONTHS AGO OR WHATEVER IT MAY BE.

I MEAN, TO ME, I'D LIKE TO IF WE HAVE EXTRA MONEY IN ONE YEAR, JUST LIKE WE DID, I'D LIKE TO I'D LIKE TO LET THAT ALL PROJECTS COMPETE FOR THAT MONEY NECESSARILY TO DO A ONE OFF, BUT IT SOUNDS LIKE THE PAST THE ONE OFFS WOULD COME THROUGH THIS, THIS PROCESS. IT WOULD OCCASIONALLY JUST KNOWING THAT WE HAD SO MANY NEEDS AND THINGS, PARTICULARLY WATER AND WASTEWATER, THEY LIKE YOU LIKE YOU SAW THEY HAD 60 PLUS PROJECTS.

NOT ALL OF THOSE WERE FULLY FUNDED BECAUSE THEY WERE PLUGGED INTO THE CIP THREE YEARS AGO.

AND NOW IT'S TIME AND IT DOESN'T HAVE ENOUGH MONEY IN IT.

SO SOMETIMES YOU JUST SEE IT TRANSFER FROM ONE OR THE OTHER, OR WE HAVE MANY CASES THAT SOMETHING JUST BROKE, BROKE DOWN AND HAD TO BE REPLACED. AND HOW DO YOU FUND IT? AND THEY GO INTO CIP AND SEE, IS THIS PROJECT STAGNANT? IS IT UNDERFUNDED? USE IT FOR THAT EMERGENCY SITUATION.

OTHERWISE, THE INTENT IS TO BRING IT BACK TO THE BUDGET PROCESS AS MORE OF A TOOL THAT THE COUNCIL IS LOOKING AT MANY OPTIONS AND DECIDE WHAT THOSE RECOMMENDATIONS.

BUT THE COUNCIL COULD THEN SAY, YOU KNOW, I LIKE THIS ONE INSTEAD. YEAH, I MEAN, I UNDERSTAND THAT THERE'S AN EMERGENCY, BUT IT'S A PERFECT SCENARIO. WHAT I'D LIKE TO SEE IS AND LET IT COMPETE, LET ALL THE PROJECTS COMPETE FOR WHATEVER WE'RE TRYING TO DO WITH THE MONEY THAT WE HAVE LEFT OVER, INSTEAD OF IN THE MIDDLE OF THE YEAR CHERRY PICKING OR HANDPICKING A FEW JUST BECAUSE, YOU KNOW, FOR WHATEVER REASON, ONE OF THE THINGS YOU'LL SEE DIFFERENT IN THE CIP THIS YEAR ADDRESSES THAT A LITTLE BIT WITH.

ONE OF THE THINGS WE TALKED ABOUT SEVERAL MONTHS AGO WAS THAT WHEN WE WERE ESTIMATING THE COST OF A PROJECT IN THE CIP IS THE REASON THAT SOME OF THEM WERE UNDERFUNDED.

WE WOULD COME AND AND ASK FOR THE FULL AMOUNT FOR THE PROJECT, NOT HAVING A PR, AN ENGINEERING REPORT ON THAT, TO KNOW EXACTLY WHAT THOSE COSTS WERE GOING TO BE, OR A MORE REFINED LOOK AT WHAT THE COSTS WERE GOING TO BE.

NOW WE'RE ACTUALLY GOING TO BE BRINGING YOU CIP IN YEAR ONE THAT ARE FOR DESIGN ONLY, AND WE'RE ONLY ASKING FOR MONEY FOR POOR DESIGN SO THAT WE CAN HAVE A BETTER IDEA ONCE WE GET INTO 30%, 40% INTO THAT IS NOT WHAT THE TRUE COST OF THE PROJECT IS GOING TO BE.

THEY CAN COME BACK AT A LATER DATE TO ASK YOU WHAT THE TRUE CIP AMOUNT FOR THE PROJECT FOR CONSTRUCTION IS GOING TO BE.

I THINK THAT'S GOING TO HELP US TO NOT UNDERFUND PROJECTS MOVING FORWARD EVER AGAIN.

AND AS YOU MENTIONED, THERE ARE SOME PROJECTS THAT COME ALONG THOUGH, THAT WE DO HAVE TO ADDRESS. AND IT'S NICE TO HAVE THE RESERVES THERE TO TAKE CARE OF THAT.

WHEREAS BEFORE WE WOULD TAKE THE EXCESS MONEY THAT WE HAD IN SOME PROJECTS OR PROJECT THAT WAS UNDERFUNDED TO ADDRESS THE EMERGENCY, THIS IS JUST A BETTER TRANSPARENT LOOK AT HOW WE'RE MOVING ALL OF IT.

SO WHERE HAVE WE GOTTEN THROUGH TO ALL? THIS IS THE SAME THING WE DO IN THE GENERAL FUND AT THE END OF THE YEAR.

WE'RE NOT GOING TO DO ON CAPITAL. CORRECT. OKAY.

YEAH. REALLY, OUR GOAL IS TO NEVER HAVE THIS AMOUNT HAPPEN AGAIN BECAUSE WE'RE ON TOP OF THE PROJECT AND THE AMOUNT IS $50 MILLION OVER THE LAST OVER BACK TO 24, 25. IT'S APPROXIMATELY 43 MILLION THAT WE'VE IDENTIFIED.

AND THAT'S 10 MILLION MORE THAN WHAT DONNY PRESENTED IN DECEMBER.

SO THAT THAT MEANS WE'VE IDENTIFIED MORE PROJECTS SINCE DECEMBER.

OKAY. SO THOSE ARE JUST PROJECTS THAT WE'LL BE ABLE TO DO THAT.

OKAY. THANK YOU. YES, SIR. ANY OTHER QUESTIONS? COUNCILMAN. NO, I MEAN, I THINK JUST TO CLARIFY, I THINK THIS PROCESS ALLOWS COUNCIL GROUP PRIORITIZE LIKE WHAT YOU'RE SAYING, OTHER THAN, LIKE YOU SAID, IT ALLOWS ALL PROJECTS TO COMPETE, BUT WE CAN WE CAN CHOOSE BECAUSE MAYBE, MAYBE WE'VE CHOSEN THAT, YOU KNOW, THIS HAS BECOME MORE IMPORTANT OR NEEDED.

AND THIS ALLOWS US TO DO THAT, PARTICULARLY WITH PROJECTS THAT ARE MAYBE FIVE YEARS OLD THAT ARE UNDER-BUDGETED.

SO IT'S STILL JUST SITTING THERE. STAFF BRING IT LATER.

COUNCIL DECIDE THAT SPECIFICALLY IT'S YOUR LEGISLATIVE AUTHORITY.

AND SO YOU APPROPRIATE ONLY ONE BUDGET AT A TIME.

IT'S A ONE YEAR BUDGET. SO THOSE CIP PROJECTS THAT YOU'RE APPROVING, EVEN THOUGH SOME OF THOSE CARRY ON AND CONTINUE THAT CIP PROJECT WAS BEING

[01:35:01]

NOT DONE OR NOT COMPLETED OR COMPLETED TO A LESSER SCOPE.

STAFF PREVIOUSLY WAS TAKING THAT LEGISLATIVE AUTHORITY AND APPROPRIATING THOSE MONIES WHERE THEY FELT LIKE IT NEEDED TO BE BEST SPENT WITHIN THE CITY.

SO NONE OF THE MONEY'S LEFT THE ORGANIZATION.

NOBODY BENEFITED PERSONALLY. BUT THEN THOSE LEGISLATIVE APPROPRIATION AUTHORITIES DIDN'T COME BACK TO COUNCIL, EXCEPT IT WAS JUST AN APPROVAL FOR AN AWARD OVER 50,000.

SO WE MAY GET A $500,000 PROJECT TO GO PUT A PIPELINE IN.

WE DIDN'T KNOW THAT IT WAS A SAVING FROM PROJECT X, AND THAT IT HAD $1 MILLION WORTH OF SAVINGS ON IT.

THERE'S STILL ANOTHER 500,000 LEFT, UNLESS YOU MAY BE AWARE OF MORE OF AN EMERGENT CONDITION.

THAT'S $1 MILLION PROJECT. AND IF YOU WERE AWARE OF THAT, YOU WEREN'T UPDATED THAT YOU HAD THAT MILLION SPENT.

SO I HAVE A GREAT EXAMPLE. CONSTRUCTION COSTS HAVE DOUBLED.

AND SO IN 2016, A COMMITMENT WAS MADE TO A COUPLE OF OUR DEVELOPERS FOR THE MOST IMPORTANT HOUSING MARKET THAT WE HAVE, WHICH IS AFFORDABLE HOUSING. THEIR HOUSES RIGHT NOW ARE $240,000, ROUGHLY RIGHT FOR THAT AVERAGE ENTRY LEVEL.

WHAT COULD HAVE BEEN MAYBE A MILLION, MILLION AND A HALF DOLLAR, YOU KNOW, MAIN LINE EXTENSION THAT WOULD HAVE BENEFITED THAT ENTIRE AREA FOR FUTURE GROWTH. NOW MAYBE $4 MILLION. AND IF WE WAIT ANOTHER FIVE YEARS, I DON'T KNOW THAT IT WOULDN'T BE 6 TO $8 MILLION.

SO IT'S VERY IMPORTANT THAT COUNCIL IS WORKING HAND IN HAND WITH STAFF.

THOSE MONIES ARE COMING BACK. SO THAT'S WASTED MONEY AND WASTED TIME FROM 2016.

THAT'S AN EXAMPLE THAT'S SITTING HERE WITH YOU TODAY THAT WE ARE TRYING TO DO RIGHT BY GROWTH AND LETTING GROWTH PAY FOR GROWTH AND GET THAT INFRASTRUCTURE INTO THE GROUND. AND SO THE LONGER WE SIT AND DON'T KNOW THESE ARE HERE, THE LESS CAPITAL WE HAVE TO WORK WITH.

THE VALUE OF THAT DOLLAR IS GOING TO CONTINUE TO DECREASE.

CONSTRUCTION COSTS ARE NOT COMING DOWN FOR A LONG TIME WITH WHAT WE'RE SEEING.

SO THE FASTER WE ACT, THE BETTER. AND THAT GOES TO STEWARDSHIP, WHICH IS OUR RESPONSIBILITY.

SO ANYTHING ELSE? COUNCIL AND GREAT REPORT. THANK YOU, MR. FREEMAN. THANK YOU. OKAY. THAT CONCLUDES 4.4.

DO I HAVE A REQUEST FOR ANY FUTURE AGENDA ITEMS?

[ 4.5. Request future agenda items and reports from City Manager ]

YEAH, I'VE GOT A I WANT TO TALK ABOUT AN ORDINANCE THAT WE'VE GOT ON THE BOOKS.

LET ME SEE. I'LL GET THE ORDINANCE NUMBER. HAD A MEETING WITH OUR CITY MARSHAL. WE GOT AN ORDINANCE ABOUT THE HEIGHT OF TREES, AND I THINK IT JUST NEEDS TO BE LOOKED AT.

IT NEEDS TO BE REEVALUATED. SO I'M GOING TO REQUEST THAT IT'S ONLY JULY 14TH MEETING MISSED THIS NEXT GAME, BUT ON JULY 14TH. OKAY, YEAH, I'M FAMILIAR WITH WHAT THE ISSUE OR CONCERN WAS.

IT'S IT'S SECTION 4-6-185. YEAH. MR.. GIVEN UP TO DATE ON KIND OF WHAT THAT SPECIFIC SCENARIO WAS.

BUT, YOU KNOW, WE MET AND THIS THIS IS IN REGARDS TO THE CANOPY OF THE ROADWAYS.

SO YEAH, SO WE MET YESTERDAY AND DISCUSSED THIS.

YES. SO WHAT I'M WONDERING IS MAYBE OVER THIS WEEK IF HE CAN GET THE UPDATE THAT I GOT, AND THEN WE'LL SEE IF THIS IS A NEEDED ORDINANCE TO LOOK AT.

SO LIKE, I'M NOT, I'M NOT SURE IF THE UPDATE YOU RECEIVED IS THE SAME TOPICS AS, AS MR. ALL FOR. OKAY. SO YOUR REQUEST IS TO LOOK AT THE.

YEAH, IT'S IT'S IN THE LANDSCAPING ORDINANCE.

THIS IS REGARDING TREES IN NEIGHBORHOODS THAT WE LOOKED AT IT AND FELT LIKE IT PROBABLY NEEDS TO BE REVISITED.

OKAY. REAL GOOD. WE'LL GET IT ON THE 14TH. IS THAT OVER, SIR.

YES, SIR. OKAY. ANYTHING ELSE, COUNSELOR? OKAY.

IT'S ALMOST FIVE, BUT I WOULD LIKE TO DO PUBLIC COMMENT, AND THEN WE'LL TAKE A QUICK RECESS, AND THEN WE HAVE OUR AUDITOR HERE. MR. KIRSHNIK I'M SORRY.

GO AHEAD. WE'VE GOTTA GET HIM OUT BY 530. SO I CAN'T TAKE UP HIS IDOL WITHOUT DOING PUBLIC COMMENT FIRST.

AND I DON'T KNOW HOW LONG PUBLIC COMMENT WILL BE THE, THE OPTION YOU COULD DO, YOU COULD DO COMMENT FOR THAT ONE ITEM ITSELF.

IF, IF ANYONE WISHES TO SPEAK ON THE ITEM. NUMBER THERE, WE COULD DO THAT ITEM, THEN DO THE ACT FOR AND THEN COME BACK AND DO GENERAL PUBLIC COMMENT. THAT'S NOT ON YOUR AGENDA. YEAH. SO LET ME ASK HOW MANY PEOPLE DON'T HAVE HERE? RAISE YOUR HAND IF YOU'D LIKE TO GIVE PUBLIC COMMENT TODAY.

HAS ANYBODY SIGNED UP OR NOT SIGNED UP? WE ONLY HAVE TWO SIGN UPS.

OKAY. LET'S PUSH AND LET'S SEE IF WE CAN GET TO MR. KIRSHNER HERE. SO WE'RE GOING TO MOVE QUICKLY INTO PUBLIC COMMENT IN THIS CITY SECRETARY.

[ 5. Public Comment - The public will be permitted to offer public comment on agenda items and items related to City business. Citizens interested in commenting may sign up online at https://www.amarillo.gov/city-secretary/public-comment-registration-form/, by calling the City Secretary’s office at (806) 378-3014, or in person in Room 3500 of City Hall, 623 S. Johnson. Citizens should sign up at least 15 minutes prior to the scheduled meeting start time. ]

READ US INTO THAT, AND LET'S GO AHEAD AND TAKE AS MANY AS ARE HERE TO SPEAK.

[01:40:06]

THANK YOU, MAYOR. THANK YOU FOR PARTICIPATING IN TODAY'S CITY COUNCIL MEETING.

YOUR VALUE. WE VALUE YOUR INPUT AND APPRECIATE YOU TAKING THE TIME TO SHARE YOUR THOUGHTS.

EACH SPEAKER TODAY WILL HAVE THREE MINUTES TO ADDRESS CITY COUNCIL DURING PUBLIC COMMENT OR ANY PUBLIC HEARING ON THE AGENDA.

AT 2.5 MINUTES, A SINGLE BEEP WILL SIGNAL 30S REMAINING.

WHEN TIME IS UP, THE TIMER WILL BE CONTINUOUSLY.

PLEASE STAY WITHIN YOUR ALLOTTED TIME. WE HAVE MULTIPLE PUBLIC HEARINGS TODAY.

IF YOU WISH TO SPEAK ON AN ITEM WITH A HEARING, PLEASE DO SO EITHER DURING PUBLIC COMMENT OR DURING THE PUBLIC HEARING, NOT BOTH. IN ORDER TO ENSURE ACCURATE RECORDS, WE WILL USE BOTH PODIUMS TODAY.

WHEN YOUR NAME IS CALLED, PLEASE MAKE YOUR WAY TO THE PODIUM.

WHEN IT'S YOUR TURN, STATE YOUR NAME AND WHETHER OR NOT YOU LIVE WITHIN THE AMARILLO CITY LIMITS BEFORE BEGINNING YOUR COMMENTS FOR TOPICS NOT ON TODAY'S AGENDA, THE TEXAS OPEN MEETINGS ACT, WOMEN'S HEALTH COUNCIL MAY RESPOND COUNCIL MAY PROVIDE FACTUAL STATEMENTS, ASK FOR THE ISSUE TO BE ADDED TO A FUTURE AGENDA, OR REFER YOU TO THE CITY MANAGER SO STAFF CAN VISIT WITH YOU ABOUT YOUR CONCERN.

IF YOU WOULD LIKE TO SPEAK TODAY BUT HAVE NOT YET SIGNED UP, PLEASE COME SEE ME AT THE FRONT TABLE NOW TO FILL OUT A FORM SO WE CAN ADD YOU TO OUR LIST. AT THIS TIME. OUR FIRST SPEAKER IS CHARLES LITTLE. AND FOR THE EMPTY PODIUM, TIM BENSON WILL BE NEXT.

AFTERNOON, SIR. COUNCIL. I LIVE IN THE CITY OF AMARILLO.

I'M HERE TODAY. KIND OF FAST TOPIC ABOUT THE PAST WATER BILLS.

I HAD RICH CALL ME ON A SUNDAY AND HE SAID HE HAD AN EMERGENCY.

HE WAS GOING TO TURN IT OVER TO HIS ASSISTANT.

AND I HAVEN'T HEARD BACK WITH THE QUESTIONS THAT I HAVE FROM THE WATER DEPARTMENT ON ANOTHER COMMENT ON THE AQUIFER, THE SALE OF THE WATER FROM THE AMERICA PROJECT.

OUT OF 809 DATA CENTERS PLANNED, 517 OF THOSE ARE IN A AQUIFER THAT HAS HAD DROUGHT PROBLEMS IN THE PAST YEAR. SO THAT'S TWO THIRDS OF THE PROJECTS.

SO I DON'T KNOW WHY THESE PROJECTS ARE COMING TO AREAS THAT ARE SHORT ON WATER.

AND I DON'T THINK JUST BECAUSE THEY ASK TO PAY DOUBLE THE RATE FOR THIS WATER, THAT WE SHOULD JUST JUMP ON BOARD WITH IT, EVEN THOUGH THEY'RE PUTTING IT IN THE PIPELINE AND ALL THAT GOOD STUFF. THE OLD SAYING, IF IT SOUNDS TOO GOOD TO BE TRUE, IT PROBABLY IS. AND FOR ME, AMERICA IS HAVING VERY HARD FINANCIAL TIMES RIGHT NOW WITH THEIR LEADERSHIP AND ALL THAT STUFF.

SO I THINK IN ALL HONESTY, WE SHOULD CANCEL THAT PROJECT AND AT LEAST PUT IT TO A VOTE OF THE CITY PEOPLE THAT IT'S BASICALLY THEIR WATER. IT'S, YOU KNOW, IT'S OUR FUTURE.

ONCE WE RUN OUT OF WATER, WE'RE DONE. SO WE NEED TO SAVE THAT WATER FOR PEOPLE.

AGRICULTURE, THAT IS THE HEART OF THIS COMMUNITY.

OKAY. THANK YOU SIR. WE WOULD INVITE MICHAEL FORD UP TO THE PODIUM.

AND, TIM, YOU MAY BEGIN. FIRST OF ALL, I'D LIKE TO THANK CAROLINE BARRY'S OFFICE FOR OPENING UP HER OFFICE FOR THE CITIZENS TO COME LEARN ABOUT THE 211 PROGRAM THAT HAD BEEN AFFECTED BY THE FIRES.

SHE HAD EVERYBODY THERE TO ANSWER QUESTIONS. NOW ONE THING I'D LIKE YOU GUYS TO CONSIDER IS TAKING OFF THE AGENDA.

6.8 $35,000 FOR ASSESSMENT OF THE LANDFILL. I THINK WE DON'T HAVE QUALIFIED PEOPLE HERE TO FIGURE THAT OUT.

THEY DON'T NEED TO BE HERE. YOU KNOW, YOU NEED TO LOOK AT THE TCU REPORT.

THERE'S A PROBLEM. LOOK AT THE GAS MANAGEMENT SYSTEM.

THAT'S A PROBLEM. CAN WE NOT FIGURE THAT OUT ON OUR OWN INSTEAD OF PAYING $35,000 FOR ANOTHER, YOU KNOW, FIRM? THE OTHER THING IS, IS AGENDA 4.3.

IT TEARS DOWN THE DOWNTOWN TIERS. YOU GUYS WANT TO DO A STUDY AND I'LL DO THREE.

I THINK THAT TIERS, THE DOWNTOWN TIERS NEEDS TO GO AWAY.

I THINK SOMEBODY NEEDS TO DO A STUDY ON. OKAY.

MR. FREEMAN STATED THAT IN 2050, WHATEVER IT IS, WE MAKE IT $3 MILLION.

HOW MUCH MONEY? LET'S DO A STUDY ON HOW MUCH MONEY WE'VE LOST IN TAX REVENUE FROM THESE DOWNTOWN HOTELS.

CAN WE DO A STUDY ON THAT AND REALLY FIGURE OUT WHAT THE ROI IS ON THAT, YOU KNOW?

[01:45:05]

YOU KNOW, 30 YEARS FROM NOW, I DON'T KNOW HOW MANY PEOPLE ARE GOING TO BE HERE A YEAR FROM NOW.

YOU KNOW, I THINK YOU GUYS NEED TO REALLY CONSIDER GETTING RID OF THE TOURISM.

YOU KNOW, I THINK IT I THINK IT'S DONE ITS COURSE.

I THINK IT NEEDS TO DISSOLVE. THE OTHER THING IS, IS ONE MORE THING IS, IS WE GOT THE BUDGET COMING AROUND.

I HOPE YOU GUYS SHARPEN YOUR PENCILS BECAUSE IT'S GOING TO BE A DOOZY.

DO YOU KNOW WHAT I'M TALKING ABOUT? YOU KNOW I CAN TELL YOU, IF WE COME BACK, THEY SAY WE'RE 15 OR $20 MILLION IN THE HOLE AGAIN. I THINK I'M GOING TO JOIN CRAIG AND PUT UP SOME BILLBOARDS.

THAT'S NOT A THREAT. NO WAY AT ALL. I'M JUST TELLING YOU FACTS.

WE CAN'T KEEP COMING UP WITH 15, $20 MILLION SHORTAGE IN A YEAR.

SO I HOPE YOU GUYS WILL TRY. THANKS FOR YOUR TIME.

THANK YOU SIR. WE WILL INVITE MIKE FISHER UP TO THE PODIUM.

AND MICHAEL JORDAN, WE BEGIN. I HAD NO INTENTION OF BEING HERE, SO I APOLOGIZE UNTIL I HEARD THE MAYOR TALK.

SO I WAS NOT NOT GOING TO SPEAK TODAY UNTIL I HEARD YOUR COMMENTS ON OPEN MEETINGS.

MR. MAYOR, WHEN I MET YOU THE FIRST TIME AT ROADSTERS AND YOU WERE THINKING ABOUT RUNNING FOR PLACE ONE.

I EXPLAINED TO YOU WHAT ANIMATED ME, WHAT THE REASON I SHOWED UP HERE, THE REASON I'VE BEEN SHOWING UP TO GINGER NELSON'S COUNCIL MEETINGS OVER AND OVER AND OVER AGAIN BECAUSE THE FACT THAT GINGER NELSON, IN CONCERT WITH THIS ATTORNEY OVER HERE, WERE ROBBING THE PUBLIC OF THEIR VOICE, YOU COULD ONLY SPEAK THE SAME ATTORNEY FOR ALL THOSE YEARS, SAID THAT YOU COULD ONLY SPEAK DURING PUBLIC COMMENT.

YOU CAN ONLY SPEAK ON ITEMS ON THE AGENDA. AND WE, THE MAYOR MR. MR. CITY ATTORNEY. IS THAT CORRECT? YES, MA'AM.

THAT IS WHAT THE LAW SAYS. THE SAME ATTORNEY, THE SAME GUY WHO'S TELLING YOU IN EXECUTIVE SESSION THAT IT'S OKAY WITH NO. 71 MEETING TO TALK ABOUT THE ENTIRE TEXAS CHAPTER 551 THE OF GOVERNMENT CODE, NOT 007 NOT THE PUBLIC COMMENT PROVISION, BUT THE WHOLE FREAKING THING, 55 PAGES.

THAT'S A NICE PUBLIC NOTICE ON THAT. BUT GENTLEMEN, WE I DON'T KNOW HOW MANY TIMES HAVE I HANDED YOU OUT.

071 OF THE. OF THE TEXAS ALL FOR. HOW MANY TIMES HAVE I HANDED YOU THAT DOCUMENT, THAT PAPER? WHAT DOES IT SAY? YOU SHOULD HAVE IT COMMITTED TO MEMORY BY NOW.

THE PUBLIC SHALL HAVE THE RIGHT TO DISCUSS ITEMS AND ITEM ON THE AGENDA BEFORE OR DURING THE AGENDA ITEM.

RIGHT. THAT'S WHAT IT SAYS. THERE'S NOT ANY INTERPRETATION OR WIGGLE ROOM AT ALL.

YOU CAN'T LIKE PLAY AROUND WITH WHERE YOU'RE GOING TO PUT THAT ON THE AGENDA. MR. MAYOR, IT SAYS BEFORE OR DURING.

SO YOUR DECISION IS BEFORE THE EXECUTIVE SESSION OR DURING YOUR AGENDA ITEMS, AND YOU CAN'T EVEN OPEN THE MEETING PROPERLY.

IT'S THE CHARTER SAYS IF YOU'RE GOING TO FOLLOW, YOU SHALL COMPLY WITH ROBERT'S RULES OF ORDER.

YOU HAVE TO CALL THE MEETING TO ORDER FOR IT TO BE OPEN.

THE LAW REQUIRES YOU TO BE IN OPEN SESSION BEFORE YOU GO TO CLOSED SESSION.

YOU DON'T EVEN CALL THE MEETING TO ORDER UNTIL WAY LATER IN THE MEETING.

AND SO THERE'S THIS PROBLEM WITH, YOU KNOW, APPARENTLY WITH US, YOU KNOW, BEING ANGRY ABOUT THINGS THESE DAYS.

OKAY. PEOPLE ARE UPSET BECAUSE THERE ARE VERY FEW EXAMPLES WITHIN THIS CITY AND WITH OTHER CITIES OF ELECTED OFFICIALS WHO WANT TO FOLLOW THE LAW. AND I WOULD SAY JUST IN RESPECT TO MR. PRESCOTT, HE AND I HAD A GREAT CONVERSATION. I THOUGHT IT WAS A GOOD CONVERSATION.

YOU KNOW, WHEN WE'RE ALLOWED TO HAVE CONVERSATIONS, GOOD THINGS CAN HAPPEN.

BUT DON'T ROB THE PUBLIC OF THEIR RIGHTS, WHICH YOU'RE DOING RIGHT NOW.

THANK YOU. I THINK WE INVITE ALAN FEINGOLD TO THE EMPTY PODIUM.

AND, MIKE, YOU MAY BEGIN. MY NAME IS MIKE FISHER WITHIN THE CITY LIMITS.

I DO HAVE A COMPLIMENT, BUT I'M GOING TO SAVE THAT FOR LAST.

IF YOU GUYS CUT ME OFF, I'LL WAIT FOR THAT. GOT SOME, SOME POLICY SUGGESTIONS, LIKE ON TIERS, YOU KNOW, TIERS THAT EVERY ONE OF THEM I'VE SEEN, THEY GIVE 100% OF THAT TAX INCREASE THAT STAYS WITHIN THAT ZONE.

BUT I'LL GIVE YOU AN EXAMPLE WHERE IT PROBABLY HURT US, HURT THE REST OF THE CITY RIGHT AFTER THAT, AND TELL THEM THAT OPENED OUT THERE ON LAKESIDE.

YOU GUYS MIGHT REMEMBER THERE WAS A MURDER IN THE PARKING LOT.

[01:50:01]

SO LET'S LET'S JUST SAY THAT WAS A CAPITAL MURDER CASE.

IT WASN'T, BUT IT WAS THERE WAS A I THINK THERE WAS A MOTHER TO BE THAT WAS MURDERED IN THE PARKING LOT RIGHT AFTER IT OPENED A FEW MONTHS.

IF THAT WAS A CAPITAL MURDER CASE, THAT WOULD COST THE CITIZENS 2.3 MILLION.

I WAS LOOKING THAT UP. WE WERE HAVING AN EXTENDED SESSION BEFORE PUBLIC COMMENT.

SO GUESS WHERE THAT MONEY COMES FROM. SO ALL ALL THOSE TAXES FREEZE.

AND THEN IF THERE'S SOME EXTENUATING CIRCUMSTANCE.

IT COSTS A LOT OF MONEY. LIKE A CAPITAL MURDER CASE.

THE REST OF THE CITY GETS TO PAY FOR IT. SO I WANT YOU GUYS TO THINK ABOUT THAT.

MAYBE MAYBE CHANGE THAT PERCENTAGE, MAYBE MAKE IT TO WHERE IT'S AT LEAST GIVE SOMETHING BACK.

LIKE ONLY GIVE THEM 90% OF THOSE TAX INCREASES TO STAND UP SOMETHING TO GO BACK IN THE COFFERS TO HELP WHEN THERE'S SOMETHING CRAZY THAT HAPPENED.

SO THE CITY DOESN'T HAVE TO ABSORB INFRASTRUCTURE COSTS OR FIRE DEPARTMENT.

LIKE THEY'RE GOING TO HAVE TO DO WITH SOUTHGATE TO USE THE CIP STUFF.

IT'S INTERESTING. WE STARTED OUT 16 MILLION, 30 MILLION, NOW 58 MILLION.

I THINK THOSE ARE THE NUMBERS I HEARD. BUT WE TOOK OUT 30 MILLION IN CEOS EARLY IN THE BUDGET.

SO NOW WE'RE ACTING LIKE WE GOT SOME EXTRA MONEY, BUT WE REALLY DON'T BECAUSE THOSE CEOS REMEMBER THE CREDIT CARD WE SPENT CREDIT CARD MONEY. AND SO WE'RE NOT AHEAD BECAUSE WE BORROWED MONEY.

WE. AND AND I THINK THAT THE THE POLICIES SHOULD BE SET.

IF YOU FIND EXTRA MONEY BECAUSE BECAUSE YOU HAVE TO SET THE BUDGET BEFORE YOU DO THE I.

AND SO WE SHOULD HAVE A POLICY THAT SAYS IF WE TAKE OUT CEOS ANY EXTRA SIP MONEY SHOULD GO BACK TOWARDS CEOS TO PAY THOSE OFF. I THINK THAT WOULD BE A GOOD THING.

A GOOD POLICY CHANGE. I'LL, I'LL END WITH THE COMPLIMENT.

I, I REALLY BELIEVE THAT THE IT LOOKS LIKE THE POLICE DEPARTMENT.

I FEEL LIKE IT FROM A CITIZEN. I DON'T KNOW HOW THE THE POLICE OFFICERS FEEL BECAUSE I DON'T WORK THERE.

BUT AS A CITIZEN, I THINK THINGS ARE HEADED UP.

I THINK WHEN THIS TOWN IS SPINNING DISARRAY WITH ALL THESE SHOOTINGS AND ALL THIS STUFF, BUT I'VE STILL SEEN POLICING HAPPENING ON OTHER SIDES OF TOWN WHEN THERE'S WHEN THERE'S BAD THINGS HAPPENING.

SO I REALLY WANT TO APPLAUD THE NEW POLICE CHIEF AND GRAYSON.

I THINK HE HE MADE A GOOD PICK MARK, THIS DAY.

IT'S THE FIRST TIME I'VE EVER COMPLIMENTED HIM TODAY.

SO MARKED ON THE RECORD. THANK YOU. THANK YOU.

MISTER. YOU MAY BEGIN. MY NAME IS ALAN FEINGOLD.

I LIVE IN THE CITY OF AMARILLO. VERY OFTEN WHEN I ADDRESS THIS COUNCIL, PARTICULARLY TODAY, I FEEL LIKE A GUY WHO'S PLAYING A CASINO GAME.

AND I'M ADDRESSING THE HOUSE. YOU GUYS ARE THE HOUSE.

AND ONE OF THE EVIDENCES OF THIS IS THAT YOU KNOW PERFECTLY WELL YOU COULD BE MEETING EVERY WEEK, AS COUNCILS DID FOR DECADES BEFORE YOU, BUT NOW YOU MEET EVERY OTHER WEEK SO THAT IF SOMEBODY IS GIVEN THREE MINUTES TO ADDRESS YOU, IT WOULD BE THE EQUIVALENT OF OH SIX MINUTES IF YOU WERE MEETING EVERY WEEK, BUT YOU DON'T. I HOPE YOU WILL CHANGE THAT.

I ALSO HOPE THAT YOU WILL GIVE DUE CONSIDERATION FOR MEETINGS WHERE THE ENORMOUS AMOUNT OF MONEY IS AT STAKE, AND YOU HAVEN'T MADE A PUBLIC COMMITMENT YET, SUCH AS ON THE PROPOSAL FOR A NEW WASTEWATER TREATMENT PLANT BEING IS THE AMOUNT OF MONEY BEING DISCUSSED IS AROUND $1 BILLION, GIVE OR TAKE 250 MILLION.

I THINK IT WOULD BE APPROPRIATE IF THIS COMMISSION, THIS COUNCIL, DECIDED TO HOLD SEVERAL MEETINGS, SAY, FOR MEETINGS OF TWO TO 2.5 HOURS EACH TO DISCUSS ALL THE ASPECTS INVOLVED IN A PROJECT THAT WOULD EVENTUALLY TAKE UP AS MUCH AS, SAY, 01,250,000,000, OR MAYBE EVEN MORE.

IF YOU CAN'T MANAGE THAT, LET ME. LET ME REMIND YOU OF THE CONSEQUENCES OF DELAYED RESPONSES TO NECESSITIES.

YOU HAVE ON TODAY'S AGENDA ITEM 6.4, WHICH IS A REVISION OF THE AMOUNT OF MONEY.

WHICH IS TO BE APPROPRIATED FOR THE NORTHEAST INTERCEPTOR.

I'M SURE YOU ALL REMEMBER THE NORTHEAST INTERCEPTOR, WHICH WAS SCHEDULED TO BEGIN AT AROUND 2019, AND THE COST WAS TO BE $25 MILLION. UNFORTUNATELY, IT GOT DELAYED, DELAYED AGAIN AND DELAYED AGAIN.

[01:55:07]

AND WHEN THE WHOLE THING WAS FINISHED, THE COST, IF YOU INCLUDE THIS ITEM, WAS MORE THAN THREE TIMES THE ORIGINAL ESTIMATE.

I'D HATE TO SEE THAT HAPPEN WITH A WASTEWATER TREATMENT PLANT.

SO I THINK WE REALLY NEED TO HAVE A SERIES OF PUBLIC MEETINGS TO DISCUSS THAT AND TO DISCUSS ITS RELATIONSHIP TO OTHER PROJECTS FOR THE WATER AND WASTEWATER SEWER SYSTEM.

THANK YOU VERY MUCH. THANK YOU, MR. FEINGOLD.

AND THAT CONCLUDES EVERYONE THAT SIGNED UP. OKAY.

I GREATLY APPRECIATE EVERYBODY SPEAKING HERE TODAY.

WE DO HAVE OUR AUDITOR HERE WHO'S BEEN WORKING ON THE AUDIT, AND WE'VE GOT AROUND 22 MINUTES TO GET YOU OUT.

THAT'S PLENTY OF TIME. SO I'M GOING TO TAKE THE AGENDA ITEM 7.5 UP OUT OF ORDER.

[7.5. Consider Acceptance of City of Amarillo Annual Comprehensive Financial Report. This item is to review and consider acceptance 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, Finance Director) ]

WE'RE GOING TO WORK THROUGH THIS ONE ONCE WE COMPLETE THIS ITEM AND RECESS.

I REALLY APPRECIATE YOU GUYS FOR HANGING IN THERE WITH ME.

OKAY. ITEM 7.5. MR. SCOTT KIRSHNER FROM CLIFTON LARSON ALLEN WILL GIVE US A PRESENTATION ON THE CURRENT AUDIT OF WHAT HE CALLS, EXCUSE ME, THE ACT. THANK YOU.

MAYOR STANLEY AND. YESTERDAY, EVERYONE RECEIVED AN ELECTRONIC COPY OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30TH, 2025.

AND THIS IS THE SIGNED COPY HERE TO THE VERY LARGE COMPLEX OCCUPANT.

SO THERE'S NOT A WHOLE LOT OF TIME TO GO OVER THIS, BUT I DO WANT TO OFFER THE NEXT COUNCIL MEETING ONCE COUNCIL PUTS THAT TIME TO GO THROUGH THIS DOCUMENT.

IF YOU ALL WOULD LIKE ME TO COME BACK TO ANSWER QUESTIONS OR I BELIEVE MAYOR STANLEY IS PROVIDING YOU ALL WITH MY CONTACT INFORMATION, YOU CAN DEFINITELY CALL ME AT ANY TIME PRIOR TO THAT TO ASK ANY QUESTIONS.

SOME OF THE MAIN THINGS I WANTED TO POINT OUT IN THIS DOCUMENT.

IN THE TIME WE HAVE. IF YOU COULD GO TO PAGE ONE OF THE.

REPORT HERE. PAGE ONE IS THE INDEPENDENT AUDITORS REPORT.

IT SHOULD BE OWNED. CLIFTON LARSON, ALLEN LETTERHEAD.

IT'S NOT A ROMAN NUMERAL OR OTHER TYPE NUMBER.

IT'S AN ACTUAL NUMBER. PAGE ONE. THE SECOND PARAGRAPH OF THAT REPORT STATES THAT, IN OUR OPINION, THAT THE FINANCIAL STATEMENTS ARE MATERIALLY CORRECT, AND IT ALSO REFERENCES TO OTHER AUDITORS WHO AUDITED THE VARMINTS WILL LEAVE IN RETIREMENT FUND AS OF THE YEAR ENDED 2024.

SO OUR OPINION AS A WHOLE, IN ADDITION TO THIS, RENDER AN UNMODIFIED OPINION WHICH IS CLEAN OPINION, THE BEST OPINION YOU CAN RECEIVE ON A SET OF AUDITED FINANCIAL STATEMENTS.

I DID WANT TO JUST COVER A FEW. HIGHLIGHTS HERE WITH THE AMOUNT OF TIME.

FIRST OF WHICH, I WOULD LIKE YOU ALL TO GO TO PAGE 30 OF THIS DOCUMENT.

AND ON PAGE 30, THIS IS THE BALANCE SHEET OF THE GOVERNMENT FUNDS GENERAL FUND.

IN SPECIFIC, THE TOTAL FUND BALANCE AS OF SEPTEMBER 30TH, 2025 FOR THE GENERAL FUND WAS $47.8 MILLION. 44.7 MILLION OF THAT IS UNASSIGNED. STILL REFERRING TO THE GENERAL FUND.

IF YOU GO TO PAGE 32 OF THIS DOCUMENT, THAT IS THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES.

BASICALLY, YOUR INCOME STATEMENT FOR THE GENERAL FUND.

AND YOU CAN SEE NEAR THE BOTTOM OF THAT PAGE, THE NEAR THE BOTTOM, THE EXCESS OR DEFICIENCY REVENUES OVER EXPENDITURES FOR THE YEAR FOR THE GENERAL FUND, $2.8 MILLION.

[02:00:07]

AND THEN THERE WERE SOME TRANSFERS, THE NET OF TRANSFERS COMING IN FROM THE OTHER FUNDS AND TRANSFERS TO OTHER FUNDS NETTED TO $19 MILLION, GOING OUT FOR A NET CHANGE IN FUND BALANCE TO -$21 MILLION HERE, WHICH ADDED TO THE BEGINNING OF YEAR ONE BALANCE OF 69 MILLION, GIVES YOU THE $47 MILLION THERE. SO THAT'S AN OVERVIEW OF THE GENERAL FUND FOR THE YEAR.

I ALSO WANTED TO GO TO PAGE. 34 IN 35.

THIS IS THE STATEMENT OF. NET POSITION OF THE PROPRIETARY FUNDS.

IN PARTICULAR THE WATER AND SEWER FUND AND THE WATER AND SEWER FUND AS OF SEPTEMBER 30TH, 2025. YOU CAN SEE. THE CASH AND CASH EQUIVALENTS OF $19.2 MILLION INVESTMENTS OF $57.6 MILLION IN.

ALSO RESTRICTED CASH AND INVESTMENTS OF $78.9 MILLION.

SO THERE IS A LARGE AMOUNT OF CASH AND INVESTMENTS IN THE WATER AND SEWER FUND.

I WANTED THEM TO GO TO PAGE 36. THIS IS THE BASICALLY THE INCOME STATEMENT OF THE WATER AND SEWER. AND AT THE BOTTOM OF THAT PAGE, THE WATER AND SEWER FUND COLUMN, THE INCOME BEFORE CONTRIBUTIONS AND TRANSFERS WAS $2.2 MILLION POSITIVE. $2.2 MILLION FOR THE YEAR AND THEN AFTER CAPITAL CONTRIBUTIONS AND TRANSFERS, THERE WAS A CHANGE IN NET POSITION OF THE WATER AND SEWER FUND TO $5.4 MILLION, WHICH IS BASICALLY THE NET INCOME OF THE WATER AND SEWER FUND FOR THE YEAR, WHICH WOULD LEAVE A NET POSITION AT THE END OF THE YEAR OF $606.1 MILLION IN THE WATER AND SEWER FUND.

AND ONE THING, JUST TO MAKE YOU AWARE OF WHERE THIS IS IN THE FINANCIAL STATEMENTS, THE DISCREETLY PRESENTED COMPONENT UNITS OF THE CITY.

THOSE AMOUNTS. BEGIN ON PAGE 42 AND GO THROUGH PAGE 44.

THE DISCRETELY PRESENTED COMPONENT UNITS ARE THE AMARILLO HOSPITAL DISTRICT AND AMARILLO EDDY SOOY, THE AMARILLO POTTER EVENTS VENUE DISTRICT, AND SO FORTH, EVEN THOUGH NOT THE CITY ITSELF.

THEY ARE BASED ON THEIR STRUCTURE AND SO FORTH.

THEY ARE CONSIDERED PART OF THE REPORTING ENTITY OF THE CITY OF AMARILLO.

THAT'S WHY THESE ARE PRESENTED HERE IN MAYOR.

STANLEY. I KNOW YOU JUST PREVIOUSLY MENTIONED ARBITRAGE, FOR EXAMPLE, AND ON PAGE 58 OF THIS DOCUMENT. YOU CAN SEE A PARAGRAPH THERE SPECIFICALLY FOR ARBITRAGE PAY. AND AS OF SEPTEMBER 30TH, 2025, THERE WERE IN GOVERNMENTAL ACTIVITIES, $2.5 MILLION IN ESTIMATED ARBITRAGE LIABILITIES THAT WAS CALCULATED BY HILLTOP SECURITIES AND PROVIDED MAYOR STANLEY WITH THAT REPORT, AND ANOTHER $8.7 MILLION IN THE PROPRIETARY FUNDS BUSINESS SITE THAT IT DID.

HE'S OF THAT, I BELIEVE APPROXIMATELY 7.5 MILLION OR SO WAS IN THE WATER AND SEWER, WITH THE MAIN AMOUNT BEING IN THE DRAINAGE FUND AND SUBSEQUENT TO THE END OF THE YEAR, A CERTAIN AMOUNT OF THOSE

[02:05:09]

LIABILITIES HAVE ACTUALLY BEEN PAID. I BELIEVE IN APRIL AND MAY OF THIS YEAR, A LITTLE MORE ON ARBITRAGE WHEN THE CITY RECEIVES BOND PROCEEDS AND INVEST THOSE UNSPENT FUNDS, ANY AMOUNT OF INTEREST EARNINGS IN ADDITION TO THE RATES IN THE BONDS, THE CITY ACTUALLY IS NOT ALLOWED TO KEEP THOSE MONIES, AND THOSE MONIES ARE REQUIRED TO BE REFUNDED TO THE FEDERAL GOVERNMENT.

AND JUST FOR REFERENCE NOTE SEVEN IS A DETAIL OF YOUR CAPITAL ASSETS OF THE CITY FOR BOTH THE GOVERNMENTAL ACTIVITIES AND THEN EACH OF YOUR ENTERPRISE FUNDS GOES INTO GREAT DETAIL THERE FOR YOUR REFERENCE AS YOU'RE GOING THROUGH THIS DOCUMENT.

NOTE 13 IS A DETAILED NOTE ON THE LONG TERM OBLIGATIONS OF THE CITY ITSELF. WHICH KIND OF SUMMARIZES OR CONCLUDES BEGINNING ON PAGE 121 THROUGH PAGE 123.

AND I MADE REFERENCE EARLIER TO SOME TRANSFERS, ESPECIALLY AS THEY RELATED TO THE GENERAL FUND LEADING TO THE DEFICIT FOR THE YEAR. AND THERE WAS A DETAIL OF THE TRANSFERS TO AND FROM FUNDS ON PAGE 128, AS WELL AS A AMOUNT STILL OWED BETWEEN FUNDS ON THAT PAGE, AND ANOTHER ITEM THAT I WANTED TO BRING UP, ACTUALLY A NOTE MAYOR STANLEY AND MENTIONED THE BUDGET PREVIOUSLY.

AND KATRINA, IF YOU COULD GO TO PAGE 159 OF THIS DOCUMENT.

THIS IS THE BUDGETARY COMPARISON SCHEDULE FOR THE GENERAL PUBLIC.

AND THE VERY LAST COLUMN IS THE VARIANCE WITH FINAL BUDGET POSITIVE OR NEGATIVE AND PRIOR TO TRANSFERS FROM OTHER FUNDS. YOU CAN SEE THE ROW TITLED EXCESS DEFICIENCY OF REVENUES OVER EXPENDITURES.

I DID WANT TO POINT OUT THE CITY AS A WHOLE. THERE WAS A POSITIVE VARIANCE OF 1,473,000, BUT SOME OF THOSE AMOUNTS HAD POSITIVE VARIANCES.

BUT IN THE EXPENDITURE CATEGORIES THERE, THERE ARE ACTUALLY FOUR OF THESE CATEGORIES THAT EXCEEDED BUDGET. ONE OF WHICH WAS FIRE PROTECTION. ONE WAS POLICE PROTECTION.

ONE WAS STREET TRAFFIC AND ENGINEERING AND TRAFFIC.

SO I JUST WANTED TO GIVE REFERENCE TO THE PAGE WHERE THE BUDGET TO ACTUAL COMPARISON IS.

AND THESE AMOUNTS ARE FURTHER BROKEN DOWN, AT LEAST FOR A POLICE.

THAT'S ON PAGE 215 OF THIS DOCUMENT IN PAGE 217 ALSO HAS FURTHER BREAKDOWN FOR THE FOR LINE ITEMS I MENTIONED THERE.

JUST FOR REFERENCE, THERE. THE PAGE 159 WAS JUST A SUMMARY OF THOSE.

THOSE ARE SOME OF THE KEY ITEMS I WANTED TO POINT OUT TO THE MAYOR AND CITY COUNCIL, JUST DUE TO THE AMOUNT OF TIME FOR TODAY, BUT WITH THE AMOUNT OF TIME REMAINING. SURE. ANY ANY OTHER ITEMS MAYOR STANLEY OR COUNCIL MEMBERS THAT YOU WOULD LIKE ME TO TOUCH ON? SO WE GOT EIGHT MINUTES.

[02:10:04]

SCOTT. SO LET ME SUMMARIZE REAL QUICK FOR COUNCIL AND THEN I'LL SEE IF COUNCIL WANTS TO GO A DIFFERENT DIRECTION.

BUT THESE WERE PRINTED PERHAPS YESTERDAY. THEY WERE GIVEN TO US TODAY 351 PAGES.

I HAVE YOUR PREVIOUS DRAFT, BUT I'M NOT SURE THAT THE REST OF THE COUNCIL HAS IT RIGHT OR HAS BECOME FAMILIAR WITH IT.

SO I WOULDN'T IMAGINE THAT COUNCIL'S IN ANY POSITION TO TAKE ANY ACTION ON THIS.

I THINK THAT IT WAS IMPORTANT TO GET YOU HERE AND LET YOU AT LEAST SPEAK TO IT, BECAUSE IT IS AN IMPORTANT DOCUMENT.

WE DIDN'T WANT TO HAVE IT ON THE AGENDA. AND THEN NOT NOT AT LEAST HAVE A MINIMUM PRESENTATION, BUT IF WE GET TWO WEEKS FOR AN EXAMPLE, THIS WOULD JUST BE SOMETHING I WOULD TRY THAT IF YOU GO BACK TO PAGE 159 RIGHT THERE.

YES. YOU'RE RECOGNIZING WE LET CITY SECRETARY GET THEIR 159.

CORRECT. AND YOU'RE RECOGNIZING THE ADDITIONAL COSTS THAT, THAT WE INCURRED IN, IN OUR PUBLIC SAFETY DIVISIONS.

AND IT SAYS ACTUAL ON BUDGETARY BASIS, IF YOU GO NOW TO SAYS FUND BALANCE, END OF THE YEAR, 47.4 MILLION THERE IN THAT THAT SECOND TO THE FROM THE RIGHT COLUMN.

BUT THEN IF YOU LOOK FUND BALANCE WITH FINAL BUDGET POSITIVE NEGATIVE, IT'S 52 MILLION, WHICH IS REALLY PRETTY CLOSE TO WHERE WE WANTED TO END UP.

THAT, THAT RECOGNIZES ADDITIONAL REVENUES THAT WE HAD THAT CAME INTO THE BUDGET.

SO IF WE GO BACK TO, I THINK, WAS IT PAGE ONE WHERE YOU SHOWED THAT 47 MILLION? YES. THE POINT OF STATING THIS IS THIS IS A COMPLEX DOCUMENT.

IT'S EASY TO GET LOST BECAUSE THERE'S SO MANY DIFFERENT ENTRIES.

SO FOR US TO HAVE A CLEAN AUDIT WHERE WE ALL ACCEPT IT AND EVERYBODY MOVES FORWARD.

I'D LOVE TO HAVE AN HOUR WITH YOU BACK HERE ON THE 23RD AND LET COUNCIL DIGEST THIS OVER THE NEXT TWO WEEKS.

LET EVERYBODY ASK ALL THEIR QUESTIONS. SEWER AND WATER.

NET CASH POSITION. YOU KNOW YOU'VE GOT IT AT 5.5 MILLION, BUT THAT ALLOWS FOR ROUGHLY $18 MILLION WORTH OF DEPRECIATION.

THAT DOESN'T MATERIALIZE IN AN ACTUAL CASH, YOU KNOW, STANCE.

SO IT'S GOOD TO HEAR HIM SAY IT. I DON'T WANT TO TELL PEOPLE THAT WE'VE GOT, YOU KNOW, LET'S SAY 22, $23 MILLION AT THE END OF THE YEAR AFTER WE DID BUSINESS.

HOW DO YOU, MR. KUSHNICK, TO SAY THAT? SO. COUNCIL, I DON'T KNOW IF Y'ALL WANT TO GO AFTER ANYTHING SPECIFIC.

I KNOW THE TIMING'S NOT GOOD. AND YOU REALLY HADN'T HAD ANY TIME, BUT WE COULD TABLE THIS AND BRING MR. KIRSCH BACK TO REALLY GET INTO THE DETAILS. OR I CAN QUIT TALKING AND LET YOU GUYS SPEAK TO WHERE YOU ARE.

I'M FINE WITH COMING BACK BECAUSE YEAH, WE JUST GOT IT.

BUT I DO I DO HAVE ONE QUESTION IS SO WE NOW, SO WE NOW PAY THE MUNICIPALITIES FACE DEADLINES TO HAVE THESE COMPLETED.

CORRECT. THAT IS CORRECT. AND WHAT IS THAT DEADLINE? THE DEADLINE WAS MARCH 29TH ON, ON OUR PROCESS, IF I'M REMEMBERING CORRECTLY, MARCH 27TH WAS THE DEADLINE WITH THE NEW SO WHAT THE CITY CEMETERY.

OKAY, SO MARCH 27TH AND WHAT WAS ACTUALLY FILED WITH THE CITY SECRETARY ON THAT DATE WAS A DRAFT OF THIS DOCUMENT. SO THERE WAS A DOCUMENT FILED WITH CITY SECRETARY ON MARCH 27TH.

AND ON THAT DATE, I WENT THROUGH THE DRAFT VIRTUALLY.

I WAS STILL IN AUSTIN, BUT THAT DRAFT WAS FILED WITH THE CITY SECRETARY BY THAT DEADLINE.

THIS FINAL DOCUMENT, WHICH HAS OUR SIGNATURE ON IT, SHOULD REPLACE THE DRAFT THAT WAS FILED WITH THE CITY, IN MY OPINION. SO BUT BUT BUT GOING BACK TO IT.

SO WE'RE AS I FOUND IT, WE'RE WE'RE 67 DAYS LATE FROM WHAT THE DEADLINE TO GET THE FINAL VERSION TO GET THE FINAL VERSION.

THAT IS CORRECT. AND SO AND THAT NEWLY SUBJECTS US TO, TO POTENTIALLY HAVING PROBLEMS. THAT DEPEND ON THE ATTORNEY GENERAL. AND WE DON'T HAVE ANY COURT RULINGS YET TO SAY, HEY, IT'S OKAY TO DO THIS. I MEAN, MY CONCERN IS, IS HOW DO WE GET TO THE POINT OF, YOU KNOW, BECAUSE I AS I UNDERSTAND IT, YOU HAD TOLD US IN YOUR FIRM AND TOLD US ON SEVERAL OCCASIONS YOU WOULD HAVE THIS.

AND IT KEPT GETTING PUSHED AND PUSHED AND PUSHED THROUGH.

I DON'T THINK ANY FAULT OF OUR OWN. AND NOW WE'RE 67 DAYS LATE ON FILING.

[02:15:03]

NO. YOU KNOW, I HOPE THE ATTORNEY GENERAL WILL LOOK KINDLY ON THIS, BUT IT'S A CONCERN FOR ME.

AND I THINK WE ALL KNEW WHAT THE DEADLINE WAS.

AND THEN, YOU KNOW, WITH ALL DUE RESPECT, YOU AS I UNDERSTAND IT, YOU TOLD US WE WERE GOING TO MEET.

WE KEPT HAVING DEADLINES WE NEEDED. AND WE KEPT HAVING TO DELAY THOSE.

SO IT JUST CAUSES ME A LITTLE BIT OF CONCERN.

I KNOW THIS IS OUR FIRST YEAR IN THE RELATIONSHIP, BUT IT JUST, YOU KNOW, I DON'T KNOW IF YOUR FIRM CAN'T HANDLE AN ORGANIZATION OUR SIZE.

I THOUGHT YOU WERE PRETTY LARGE. BUT AND, YOU KNOW, AS A FIDUCIARY RESPONSIBILITY AND MAKING SURE THAT THINGS GET DONE ON TIME YOU KNOW, THAT WAS JUST, THAT WAS A CONCERN THAT I HAD.

YEAH. AND I GUESS JUST A COUPLE OF COMMENTS ON THAT.

MARX AND ALLEN DEFINITELY IS LARGE ENOUGH TO.

AUDIT AMENITIES SUCH AS THE CITY AND. JUST SOME OTHER EXAMPLES OF CLIENTS WE HAVE IN THE STATE OF TEXAS WOULD BE.

WE ARE IN DALLAS COUNTY, CLARA COUNTY, TEXAS.

AS FAR AS TRANSPORTATION, WE OUGHT TO DO THE SINGLE AUDIT OF THE FEDERAL GRANTS FOR THE ENTIRE STATE OF TEXAS.

JUST IN THIS SITUATION, WITH THE IMPLEMENTATION OF A NEW ERP SYSTEM THIS YEAR AND SEE STAFF WORKING THROUGH THAT, US REQUESTING MORE BOARDS AND DRILLING DOWN TO GET TO THE LEVEL OF DETAIL THAT WAS NEEDED THAT CAUSED DELAYS IN GETTING THE INFORMATION REQUIRED TO ACTUALLY COMPLETE THE AUDIT. AND YOU MENTIONED NEW AUDIT FIRM, JUST GETTING FAMILIAR, REALLY GETTING INTO THE DETAILS OF THE CITY OF AMARILLO, WHICH WE DEFINITELY DID.

AND THERE WAS ALSO TURNOVER IN KEY MEMBER OF THE FINANCE DEPARTMENT, THE CHIEF FINANCIAL OFFICER WITH KYLE AROUND CHRISTMAS, WHICH WAS RIGHT ABOUT WHEN THE AUDIT WAS REALLY ABOUT TO BEGIN IN FULL FORCE.

SO THERE WERE A NUMBER OF ISSUES THAT LED TO THE DELAY OR THE FINAL ISSUANCE OF THIS DOCUMENT THAT YOU HAVE NOW. OKAY. WELL, HOPEFULLY NEXT YEAR WE'LL BE ABLE TO MEET THE DEADLINE IF WE CONTINUE.

YES, WE WOULD DEFINITELY MEET THAT DEADLINE. THERE'S NO OTHER OPTION.

NOT TO BE AT THAT, MR. KIRSCH. AND I JUST WANT TO MAKE SURE EVERYBODY HEARS IT AND THAT I SAY IT PLAINLY.

AND IF YOU'LL ANSWER THIS 100%, YOU KNOW, HONESTLY DID I HOLD YOU UP IN ANY WAY IN PERFORMING THIS AUDIT? NO. YOU DID NOT HOLD ME UP IN ANY WAY. WE HAD NUMEROUS VERY PRODUCTIVE MEETINGS THROUGHOUT THE COURSE OF THE AUDIT. AND I DID WANT TO COMPLIMENT KATRINA OWENS, HER STAFF.

VERY BAD. BUT MR. MCBROOM, FOR CERTAIN ITEMS NEED TO BE AUDITED.

THE CITY WAS DID EVERYTHING THEY COULD TO GET THIS AUDIT COMPLETE AND WORK.

I DON'T KNOW HOW HOW MANY ADDITIONAL HOURS, LOTS OF OVERTIME TO GET THIS AUDIT COMPLETED.

I JUST WANT TO COMPLIMENT CITY STAFF AND ALL THEIR EFFORTS IN THIS DOCUMENT TO WHERE IT IS NOW REQUIRED.

WELL, WE APPRECIATE THE HARD WORK. I JUST WANT TO CLARIFY, I WAS I DID NOT SAY THAT ANYBODY HERE CAUSED IT.

IN FACT, I AS I HEAR YOU, OUR ORGANIZATION DID A GOOD JOB AND DID WHAT THEY WERE ASKED IN A TIMELY MANNER.

I GUESS MY QUESTION IS WHERE DID THE BREAKDOWN OCCUR? I GUESS BREAKDOWN. BEST WAY TO DESCRIBE IT WAS THE IMPACT THAT THE NEW WORKDAY SYSTEM HAD ON THE FINANCIAL REPORTING.

NOT CAPABILITIES, BUT UNDERSTANDING HOW TO GET THE INFORMATION OUT OF THAT SYSTEM IN ANY LEVEL OF DETAIL THAT'S REQUIRED FOR US AS YOUR INDEPENDENT AUDITORS TO IN THE AUDIT, I GUESS IT WAS A LEARNING CURVE, IF YOU WILL, AND NOT ONLY FROM CITY STAFF WHO ARE LEARNING THAT NEW SYSTEM, BUT UNDERSTANDING

[02:20:09]

WHAT CLIFTON, MARKS AND ALLEN WOULD NEED, THE DETAIL AND GETTING THAT LEVEL OF DETAIL OUT OF THE SYSTEM.

I WOULD SAY THAT IT BREAKDOWN IS THAT ACCURATE WORD.

THAT WOULD BE THE PRIMARY REASON FOR THE DELAYS IN THE FINAL ISSUANCE OF THIS DOCUMENT.

AND THEN, AS I UNDERSTAND IT, THERE WERE PREVIOUS TIMES TODAY THAT YOU FELT YOU HAD COMPLETED IT.

AND WHEN THERE WAS TALKS ABOUT PUTTING ON A PREVIOUS AGENDA, BUT THEN WE HAD TO KEEP DELAYING IT. YES.

WAS THAT DUE TO GETTING THE INFORMATION OUT TO GET THE FINAL INFORMATION OUT, TO GET ALL FINAL QUESTIONS SATISFACTORILY ANSWERED AND RESOLVED FOR CLIFTON ARSENAL, AND TO FEEL CONFIDENT TO PUT OUR SIGNATURE ON THIS DOCUMENT. THIS IS A QUALITY PRODUCT THAT YOU ALL NOW HAVE.

THANK YOU. WE APPRECIATE THE ADDITIONAL EXPLANATION AND APPRECIATE YOUR TIME HERE.

I KNOW IT'S A LITTLE PAST 530. WE'RE GOING TO GET YOU HEADING BACK UNLESS COUNCIL HAS ANYTHING FURTHER.

WE'RE GOING TO HAVE AMPLE OPPORTUNITY TO DIGEST THIS AND ASK A LOT OF QUESTIONS AND DIG INTO IT.

ON JUNE 23RD AND CITY COUNCIL, ONCE WE GOT HERE ON THE 23RD TO ANSWER ANY AND ALL QUESTIONS, OR MAYBE JUST EXPLAIN MORE.

SOME OF THE PAGES THAT I DID NOT TOUCH ON BECAUSE IT'S A VERY LARGE, COMPLEX DOCUMENT.

I KNOW WE CAN DO ZOOM AND VIRTUAL. I THINK IT ALWAYS HELPS TO HAVE YOU HERE.

AND I KNOW YOU'VE GOT A LOT INVESTED IN THIS AND WE'RE AN IMPORTANT CUSTOMER, SO WE APPRECIATE YOU COMING BACK AND BEING PART OF THE MEETING.

AND THEN, I MEAN, YOU EVEN HEARD WE STILL HAVE SOME RECONCILIATION OF THE SEWER AND WATER BALANCE TO MAKE SURE THAT WE KNOW WHERE WE ARE MOVING FORWARD.

SO I THINK IT'D BE HELPFUL TO HAVE YOU PART OF THAT DISCUSSION. AND WE LOOK FORWARD TO GETTING YOU BACK HERE.

WE WE APPRECIATE YOU GETTING IT TO US AND WE UNDERSTAND THE CONSTRAINTS.

YEAH. THANK YOU ALL. THANK YOU, MR. KIRSHNER.

COUNCIL BEFORE YOU IS ITEM 7.5. I WILL MOVE THAT WE ACCEPT THE COMPREHENSIVE FINAL REPORT SO IF YOU'LL HIT YOUR MICROPHONE. I'M SORRY. ARE YOU.

ARE YOU GOOD? ARE YOU STILL GOOD TO TABLE THE ITEM? I WANT TO TABLE IT, BUT DON'T YOU HAVE TO ACCEPT IT TODAY? NO, SIR, WE CAN TABLE IT. I WOULD HATE TO ACCEPT IT WITHOUT YOU REVIEWING IT.

ABSOLUTELY. OKAY. I THOUGHT THAT WE HAD TO ACCEPT IT BY BY BY.

NO SURPRISE. THEN I WOULD MOVE THE TABLE UNTIL THE 23RD.

OKAY. HAVE A MOTION TO TABLE ITEM 7.5. DO I HAVE A SECOND? SECOND. MOTION AND A SECOND ON SEVEN. FIVE. ALL IN FAVOR, PLEASE SAY AYE.

AYE. ANY OPPOSED? MOTION PASSES. IF YOU GUYS GIVE US AND YOURSELVES A 15 MINUTE WELL-EARNED BREAK, WE'LL BE BACK AND RUN THE REST OF THE MEETING.

THANK YOU. OKAY. THANK YOU GUYS FOR BEING SEATED. WE'RE GOING TO GO AHEAD AND CALL OURSELVES BACK IN SESSION.

LET'S SEE WHERE WE'RE AT HERE. PUBLIC COMMENT IS DONE.

WE HAVE A CONSENT AGENDA. GENTLEMEN, CONSENT AGENDA IS BEFORE YOU.

[6. Consent Agenda - It is recommended that the following items be approved and that the City Manager be authorized to execute all documents necessary for each transaction. The following items may be acted upon by one motion. No separate discussion or action on any of the items is necessary unless desired by a Councilmember, in which event the item shall be considered in its normal sequence, after the items not requiring separate discussion have been acted upon by a single motion. ]

MAYOR, I WOULD LIKE TO REQUEST 6.9 BE TAKEN OUT JUST FOR A LITTLE BIT OF DISCUSSION.

TELL ME WHICH 169 IS. THAT IS MEDICAL AND FITNESS OUT.

YES. OKAY. REQUEST TO REMOVE SIX NINE FOR ADDITIONAL INFORMATION.

ANY OTHER REQUESTS? YEAH. CAN I JUST MAKE A COMMENT ON ONE BEFORE WE.

ALREADY HAD A DISCUSSION WITH THE CITIZEN THAT BROUGHT THIS UP, BUT ON 6.8 THE PROFESSIONAL SERVICES AGREEMENT FOR OPERATIONAL ASSESSMENT OF THE CITY LANDFILL. I JUST WANT TO ADDRESS THAT. EVERYBODY ELSE IS PAYING ATTENTION OR LISTENING.

CITY STAFF DID THIS AT OUR DIRECTION. WE REQUESTED THAT AT THE PRESS CONFERENCE THAT IT SEEMS LIKE A LOT OF MONEY TO ASK A THIRD PARTY TO COME IN AND CHECK OUR PLAINFIELD DON IS DOING A GREAT JOB OUT THERE.

HE'S ALREADY MADE SEVERAL CHANGES IN THE PROCESS OF MAKING CHANGES, BUT WE FELT LIKE FOR TRANSPARENCY AND FOR JUST A COMPLETE LOOK, WE WANTED SOMEBODY, A THIRD PARTY TO COME IN.

WE JUST WANT THIRD PARTY TO COME IN AND TAKE A LOOK AT IT.

I WAS TALKING TO MIKE J BACK THERE AS WELL, AND WE JUST WANT TO MAKE SURE THAT WE DO HAVE SOMEBODY OUTSIDE LOOKING AT IT.

YES, IT'S A LOT OF MONEY, BUT WE'RE GOING TO GET AN HONEST LOOK AT OUR LANDFILL, WHICH WE ALL KNOW NEEDS TO HAPPEN.

SO THAT'S THE REASON THAT THEY'RE JUST FOLLOWING OUR DIRECTION AND DOING WHAT WE ASK THEM TO DO.

[02:25:02]

SO JUST WANT TO MAKE THAT POINT. I GREATLY APPRECIATE THAT.

AND I KNOW THAT IS WITHIN THE $50,000 ALLOWANCE THAT THE CITY MANAGER COULD HAVE JUST MOVED FORWARD ON.

AND SO NOT ONLY WAS I ASKED, YOU KNOW, CAME BACK AT 34 MAYOR YOU WANT TO PUT IT ON THE AGENDA OR YOU WANT ME TO JUST GO DO IT? I SAID, NO, LET'S PUT IT ON THE AGENDA BECAUSE OF WHAT'S GONE ON AND, AND THE YOU KNOW, THE DISASTER RELIEF THAT IS TAKING PLACE OUT THERE.

EVERYBODY DESERVES TO KNOW AS MUCH AS THEY CAN KNOW ABOUT EVERYTHING THAT HAPPENED.

AND, AND, YOU KNOW, THE GOOD AND THE BAD. AND SO YOU KNOW, MR. HOOPER'S DOING AN INTERNAL EVALUATION. VERY THOROUGH.

I THINK WE'RE GOING TO BE PLEASED WITH IT. BUT IF WE DON'T DO AN EXTERNAL, I THINK THAT'S WHAT WE WOULD HEAR IS LIKE, WELL, THAT'S JUST HIM, YOU KNOW, LOOKING INTO HIMSELF LIKE WHO'S OVERSEEING THIS? AND SO THE $34,000 IS MONEY WELL SPENT BECAUSE OF THE CIRCUMSTANCES THAT ARE PRESENTED.

AND WE WANTED TO PUT IT ON THE AGENDA SO YOU CAN SEE IT.

SO I HOPE YOU GUYS SEE THAT. LET ME JUST ASK A QUESTION TO FOR CLARITY.

SO WHAT IS THE THIS? THIS IS, IS THIS GOING BACK AND INVESTIGATING THE PAST OR WHAT EXACTLY ARE WE CHARGING THEM AND WHAT ARE WE? I'M NOT MAKING A REALLY GOOD QUESTION. IT'S JUST NOT TO GO BACK AND INVESTIGATE THE FIRE.

THE STATE FIRE MARSHAL AND TCP HAVE BEEN PART OF THAT. THIS THIS IS TO DO MORE OF AN ASSESSMENT OF OUR OPERATIONS.

AND AS I'VE BEEN HERE, IT'S IN MY NOTES HERE.

IT'S AN OUTSIDE. OUTSIDE EXPERT. COME IN. THE LANDFILL HAS NOT BEEN PART OF THE PROCESS HERE TO EXAMINE OUR SITES, TO EXAMINE OUR SITE OPERATIONS AND MAKE RECOMMENDATIONS ON ANY ADJUSTMENTS NEEDED TO MAKE APPROPRIATE PARTS OTHERWISE.

BEST BEST STANDARD PRACTICES. SO HOW WE EVERYTHING FROM FENCE SIZES TO BULLDOZERS TO STAFFING TO WORK, THE WORKING FACE TO EVERYTHING. EXAMINE OPERATIONS.

THE MECHANISM OF HOW WE HOW WE CAN. HOW WE CAN IMPROVE THINGS IF POSSIBLE.

SO, I MEAN, RIGHT NOW YOU'RE DOING SOMETHING SIMILAR TO THIS INTERNALLY, CORRECT? ABSOLUTELY. WE'VE ALREADY STARTED AND HAVE COMPLETED SOME OF THOSE THINGS AS FAR AS THE INTERNAL OPERATIONS LOOK, BUT THERE'S STILL SOME WORK TO DO THERE. BUT YES, DOING BASICALLY THE SAME THING THAT THE EXTERNAL CONSULTANTS GOING TO DO, LOOKING AT STAFFING, LOOKING AT EQUIPMENT, LOOKING AT EQUIPMENT SIZES, LOOKING AT HOW MUCH WASTE WE TOOK IN PREVIOUSLY IN THE PAST IS HOW MUCH WE'VE INCREASED THAT. WHILE WE'VE SEEN A SIGNIFICANT INCREASE IN THAT EVERYTHING ALL LANDFILL OPERATIONS IS A DEEP DIVE INTO THAT.

OKAY. WELL, IT LOOKS LIKE BECAUSE I THINK THERE WAS SOME CONFUSION ABOUT WHETHER WE WERE INVESTIGATING, BUT YOU'RE SAYING THE STATE FIRE MARSHAL IS INVESTIGATING THAT LEGALLY. AND THEY'LL THEY'LL COME UP WITH A REPORT TO SAY WHAT WE FOUND AND WHAT THAT MAY LOOK LIKE.

THIS SEEMS MORE LIKE IT'S A ALMOST LIKE WHAT WE JUST WENT THROUGH.

YOU'RE DOING SOMETHING AND THEN A THIRD PARTY IS GOING TO COME IN AND AUDIT WHAT WE'RE DOING.

I MEAN, ACTUALLY YOUR REPORT DIRECTLY, ALTHOUGH YOUR REPORT COULD BE.

SO JUST LIKE IN OUR FINANCIALS, WE'RE SAYING, OKAY, WE, WE, WE KEEP OUR FINANCIALS, WE INTERNAL AUDIT AND WE LOOK AT THEM, BUT THIS IS JUST AN EXTRA LAYER TO SAY, OKAY, LET'S MAKE ABSOLUTELY SURE FROM AN INDEPENDENT THIRD PARTY THAT WE'RE DOING ALL THE THINGS THAT WE NEED TO DO. SURE. OKAY. THANK YOU, THANK YOU.

OKAY. SO COUNSEL, IF YOU UNDERSTAND WHAT'S BEFORE YOU REQUEST TO REMOVE 6.9, THE REST OF THE CONSENT AGENDA IS READY TO GO.

I MOVE TO APPROVE THE CONSENT AGENDA -6.9 AS PRESENTED.

SECOND MOTION IN A SECOND. ALL IN FAVOR, SAY AYE.

AYE. AYE. ANY OPPOSE? MOTION PASSES. LET'S TAKE UP ITEM SIX NINE.

[6.9. Consider Approval - Firefighter Medical and Fitness Evaluation Services Contract ]

JUST A COUPLE OF MS. JUST A COUPLE QUESTIONS.

I'LL. DO YOU WANT TO GO ON FOR STAFF? BECAUSE I DO SUPPORT THIS PROGRAM, AND I JUST WANT TO GET UP TO SPEED ON KIND OF WHERE WE ARE.

SO WE'RE LOOKING AT IT. SO THIS IS A CONTRACT WITH A COMPANY TO DO HEALTH SCANNING FOR FIREFIGHTERS.

YES, SIR. THIS IS OUR SECOND. THIS WILL BE OUR SECOND YEAR OF USING THEM.

CORRECT. OUR FIRST RENEWAL. AND THEN BUT WE USED TO DO SIMILAR TYPE THINGS.

AND THEN THERE WAS A REQUEST TO DO MORE. AND I UNDERSTAND THAT THE ORIGINAL FOR A WHILE WE WERE SPENDING ABOUT $100,000 A YEAR, PROBABLY LESS THAN THAT. BUT GIVE OR TAKE THAT. AND NOW WE'RE UP TO ABOUT 250 OR SO.

I THINK WE'RE BUDGETING. 263. CAN I WALK YOU THROUGH WHAT, WHAT THE WHAT? WHAT ARE WE GETTING FOR? WHAT ARE WE DOING NOW? IN ADDITION, YOU KNOW, FOR THE EXTRA INVESTMENT.

SO THE BIGGEST COMPONENT THAT WAS ADDED TO WAS CANCER SCREENING, WHICH IS A NEW STATE LAW FOR FOR FIREFIGHTERS THAT ARE ENTERING THEIR FIFTH YEAR OF SERVICE. WE ACTUALLY STARTED THIS PROCESS PRIOR TO THAT STATE LAW ACTUALLY PROVIDED TO ALL FIREFIGHTERS.

SO IT'S THEIR, THEIR NORMAL ANNUAL EXAMS STILL HAS ALL THE BLOOD WORK, THE NORMAL PHYSICAL, BUT IT HAS ADDITIONAL CANCER SCREENING AND SOME ADDITIONAL ANALYSIS THAT WE WEREN'T RECEIVING PREVIOUSLY.

OKAY. AND SO THE INCREASE IN COST IS PRIMARILY DUE TO MORE SCREENINGS, TESTING THOSE TYPES OF THINGS.

I GUESS THE CURRENT VENDOR LIFE EXTENSION, LIFE SPAN WELLNESS CENTER, THAT, THAT, THAT COMPANY IS BASED IN TAMPA,

[02:30:01]

TAMPA, FLORIDA. AND THEN MOST OF THEM ARE BASICALLY REMOTE WORKERS.

THEY KIND OF SET UP WHERE THEY ARE AND THEY TRAVEL AND DO ON SITE SCANNING.

SO THE, THE PEOPLE THAT COME INTO THIS AREA TO DO THAT SCANNING, ARE THEY USING LOCAL RESOURCES OR DO THEY HAVE TO COME FROM ELSEWHERE OR IS THAT COMING FROM LUBBOCK. OKAY, SO THEY'RE COMING FROM SOMEWHERE ELSE? YES, SIR. NOW, THE OTHER THING. I LOOKED ON SOMEBODY BECAUSE YOU PROVIDED ME A LOT OF DETAIL ON THIS. AND I JUST NOTICED ON SOME OF THE AREAS, ON SOME OF THE BILLING THAT LIFESCAN HAD PROVIDED.

AND YOU LOOK AT THE PREVIOUS CONTRACT WE HAD LOCALLY, THERE WERE LIKE CHEST X-RAYS WENT FROM ABOUT $55 TO $103.

SO LIKE CHECKS, X-RAYS, WE'RE PAYING MORE ALMOST DOUBLE THAN WHAT WE WERE BEFORE.

THE BLOOD THAT WAS A BLOOD TEST ON THERE THAT WENT FROM 30 TO $56.

SO WE'RE PAYING MORE FOR THESE SERVICES THAN WE DID LOCALLY.

YEAH. AND THOSE ARE THE COUPLE THAT WE'RE ACTUALLY GOING TO BE ABLE TO COMPARE LINE ITEM COSTS.

THE WAY THIS ONE WAS PUT OUT. IT WAS NOT PRICE BASED AND WE DIDN'T HAVE LINE ITEM COMPARISONS LIKE WE HAVE IN PREVIOUS YEARS.

BUT THOSE WERE A COUPLE WE WERE ABLE TO COMPARE TO.

YEAH. AND THEN WE REALLY DON'T KNOW TO FACTOR IN HOW MUCH MORE IT'S COSTING US BECAUSE WE'RE HAVING TO, TO BRING STAFF HERE INSTEAD OF USING LOCAL STAFF OR LOCAL RESOURCES TO BE ABLE TO DO THAT.

IT'S ALSO A COMPREHENSIVE PROPOSAL COST. IT'S ALL BAKED IN ONE NOW.

WELL, I WOULD LIKE I WOULD SAY THIS AND I'M GLAD WE GOT THAT ON THERE AND I'M SUPPORTING IT AND COMMITTING IT.

I WILL VOTE FOR IT TODAY. BUT JUST BASED ON SOME OF THIS INFORMATION AND, YOU KNOW, WITH SOME OF THE INDIVIDUAL SERVICES APPEARING TO COST MORE YOU KNOW, I DON'T KNOW WHETHER IT'S COSTING MORE TO AND I, AS I UNDERSTAND IT, COST WHEN WE INITIALLY BID IT, I DON'T THINK IT WAS WHO WOULD, WHO COULD BEST PROVIDE THE SERVICE, BUT HOW MUCH THEY CHARGE REALLY WASN'T A CORRECT.

THANKS FOR YOUR EXPERTISE IN THE FIELD. YES. WELL, I WOULD JUST LIKE TO SAY, I MEAN, WE CAN APPROVE THIS TODAY, BUT MAYBE STAFF CAN EVALUATE THIS AND KIND OF BRING BACK TO COUNCIL BEFORE NEXT YEAR'S RENEWAL.

YOU KNOW, WHETHER IT'S POSSIBLE TO LOOK AT, YOU KNOW, WHETHER THIS COULD BE DONE LOCALLY AT A AT A, IT JUST SEEMS TO ME IF YOU'RE BRINGING PEOPLE FROM OTHER PLACES, IT'S NATURALLY GOING TO COST MORE.

AND IF WE CAN, YOU KNOW, LOOK AT THE OPPORTUNITY TO, TO SAVE TAXPAYER MONEY.

AND ON TOP OF THAT, BE ABLE TO DO IT LOCALLY.

I THINK THAT WOULD JUST BE SOMETHING FOR US TO BE ABLE TO LOOK AT WITHOUT COMPROMISING THE SERVICES, THE TESTING AND THAT TYPE OF THING. SO MAYBE IF WE COULD JUST KIND OF TAKE A LOOK AT THAT, I KNOW THERE'S A RENEWAL THAT MAYBE WE SAY, NO, THERE'S NOTHING WE CAN DO, BUT BUT THERE'S A CHANCE TO GET THOSE SERVICES DONE LOCALLY AND MAYBE, YOU KNOW, SEEING SOMEBODY THAT WE CAN GET IT DONE AT A BETTER PRICE AS LONG AS WE'RE NOT COMPROMISING SERVICE, SOMETHING THAT I'D LIKE TO SEE IF WE CAN GET THAT IN FOR NEXT YEAR, WHETHER THAT'S A POSSIBILITY.

YES, SIR. WE CAN DEFINITELY DO THAT. ANY FURTHER DISCUSSION ON THAT ONE? OKAY. IS THAT ITEM SIX NINE BECAUSE I'M ABOUT TO APPROVE ITEM SIX NINE AS PRESENTED.

SECOND MOTION IN A SECOND ON ITEM 6.9. ALL IN FAVOR, SAY AYE.

ANY OPPOSED? MOTION PASSES. ALL RIGHT. NOW I CAN JUST TAKE THEM IN ORDER.

OUR FAVORITE PRESENTER IS GOING TO HAVE A PUBLIC HEARING HERE IN A MINUTE.

[7.1. Public Hearing and Consideration of Ordinance No. 8247. This item is a public hearing and first reading of an ordinance considering the rezoning of a 2.39 acre tract of unplatted land, located in Section 152, Block 2, A.B.& M. Survey, Randall County, Texas, plus one-half of all bounding streets, alleys, and public ways, to change from Manufactured Home District to Residential District 2. (VICINITY: S. Osage St. & Freedom Dr.; APPLICANT/S: OJD Engineering, LLC for Nazcon Group LP) (Brady Kendrick, Senior Planner) ]

GOOD EVENING SIR. GOOD EVENING MAYOR. COUNCIL A COUPLE FOR YOU TODAY.

THIS IS A HEADS UP THAT BOTH ARE RELATED TO EACH OTHER. SO I'LL COVER MOST OF THE CONTENT FOR THEM IN THE FIRST ONE AND THEN KIND OF BREEZE THROUGH THE SECOND.

FIRST ONE IS A PUBLIC HEARING AND CONSIDERATION OF ORDINANCE 8247 THIS IS THE REZONING OF 2.39 ACRES OF LAND LOCATED WITHIN RANDALL COUNTY, TEXAS, AT THE INTERSECTION OF SOUTH SOUTH STATE STREET AND GREENLAND DRIVE.

THE APPLICANT IS PROPOSING TO REZONE THIS PROPERTY FROM MANUFACTURED HOME DISTRICT TO RESIDENTIAL DISTRICT.

TWO IS THE REQUEST, AND THIS IS SIMPLY THE CONTINUATION OF THE SOUTH HAVEN SUBDIVISION THAT ARE LOCATED TO THE NORTH.

THEY'RE JUST MOVING ON TO THEIR NEXT PHASE. AND THIS IS ONE OF THE PIECES OF THAT NEXT PHASE.

WE THE PLANNING AND ZONING COMMISSION DID FIND THAT IT CONFORMS WITH THE CITY PLAN, AND GIVEN THE EXISTING ZONING AND DEVELOPMENT PATTERNS IN THE AREA, THEY BELIEVE IT'S A LOGICAL CONTINUATION OF THE PATTERNS IN THAT AREA.

ULTIMATELY, THE DEVELOPER JUST WANTS TO ENSURE THAT HOMEBUILDERS STRICTLY FOLLOW THE RESIDENTIAL DISTRICT TWO STANDARDS WITH SETBACKS AND SUCH, AND IS ULTIMATELY THE REASON FOR THE REQUEST.

WE DID NOT RECEIVE ANY PUBLIC COMMENTS ON THIS ITEM AS OF THE MEETING TODAY, AND THE PLANNING AND ZONING COMMISSION DID RECOMMEND APPROVAL WITH A SIX ZERO VOTE.

VERY GOOD. MR. KENDRICK COUNCIL, DO YOU HAVE ANY QUESTIONS FOR BRADY? NO. OKAY. AT THIS TIME, I'LL OPEN THE PUBLIC HEARING.

DO I HAVE ANYONE WHO WOULD LIKE TO SPEAK FOR OR AGAINST THIS SIDE? OKAY, WE'LL GO AHEAD AND CLOSE THE PUBLIC HEARING. ITEM 7.1 IS BEFORE YOU, GENTLEMEN.

I MOVE TO ADOPT. I MOVE TO ADOPT ORDINANCE NUMBER 8247 AS PRESENTED.

[02:35:06]

SECOND. MOTION AND A SECOND ON SEVEN ONE. ALL IN FAVOR, PLEASE SAY AYE.

AYE. ANY OPPOSED? MOTION PASSES. LET'S MOVE ON TO SEVEN TWO.

[7.2. Public Hearing and Consideration of Ordinance No. 8248. This item is a public hearing and first reading of an ordinance considering the rezoning of a 7.56 acre portion of Lot 2, Block 1, Southeast Place Unit No. 2, an addition to the City of Amarillo, in Section 152, Block 2, A.B.& M. Survey, Randall County, Texas, plus one-half of all bounding streets, alleys, and public ways, to change from Manufactured Home District to Residential District 2. (VICINITY: Living Water Dr. & Satinwood Dr.; APPLICANT/S: OJD Engineering, LLC for Nazcon Group LP) (Brady Kendrick, Senior Planner) 7.2. Public Hearing and Consideration of Ordinance No. 8248. This item is a public hearing and first reading of an ordinance considering the rezoning of a 7.56 acre portion of Lot 2, Block 1, Southeast Place Unit No. 2, an addition to the City of Amarillo, in Section 152, Block 2, A.B.& M. Survey, Randall County, Texas, plus one-half of all bounding streets, alleys, and public ways, to change from Manufactured Home District to Residential District 2. (VICINITY: Living Water Dr. & Satinwood Dr.; APPLICANT/S: OJD Engineering, LLC for Nazcon Group LP) (Brady Kendrick, Senior Planner) ]

BRADY SEVEN TWO IS ORDINANCE 8248. THIS TRACT OF LAND IS A 7.56 ACRE PORTION OF LAWSUIT BLOCK ONE SOUTHEAST PLACE, UNIT NUMBER TWO IN RANDALL COUNTY, TEXAS, IN THE VICINITY OF LIVING WATER DRIVE AND SET WOOD DRIVE.

THEY ARE ALSO REQUESTING TO REZONE THIS PROPERTY FROM MANUFACTURED HOME DISTRICT TO RESIDENTIAL DISTRICT TWO FOR THE SAME REASONS.

AND THE APPLICANTS ARE JD ENGINEERING LLC FOR GASTON GROUP LP.

AND LIKE I SAID, JUST THE OTHER PART OF THAT NEXT PHASE OF THE SOUTH SUBDIVISION ALSO CONFORMS TO CITY PLAN 2045 AND LOGICAL CONTINUATION OF ZONING AND DEVELOPMENT PATTERNS IN THAT AREA.

WE ALSO DID NOT RECEIVE ANY COMMENTS ON THIS ITEM AS OF MEETING TODAY, AND PLANNING AND ZONING COMMISSION ALSO RECOMMENDED APPROVAL OF THIS REZONING WITH A SIX ZERO VOTE. QUESTIONS FOR MR. KENDRICK. OKAY. AT THIS TIME, I'LL OPEN A PUBLIC HEARING ABOUT HOW ANYONE WHO'D LIKE TO SPEAK FOR OR AGAINST ITEM SEVEN TWO.

OKAY. WE'LL GO AHEAD AND CLOSE THE PUBLIC HEARING AND WE'LL ENTERTAIN A MOTION.

I MOVE TO APPROVE ORDINANCE NUMBER 8248 AS PRESENTED.

SECOND. MOTION AND A SECOND. ALL IN FAVOR, PLEASE SAY AYE.

AYE. ANY OPPOSED? MOTION PASSES. THANK YOU, MR. KENNEDY. HAVE A GREAT WEEK. ITEM 7.3. MRS COLE IS COMING UP HERE TO TAKE US INTO THAT ONE FINANCIAL

[7.3. Consideration of Resolution No. 06-09-26-1. This item is the first reading to consider a resolution amending the City of Amarillo financial policies. (Lola Ogunremi, Chief Financial Officer) ]

POLICY AMENDMENT. EVENING. GOOD EVENING.

SO THIS IS THE FIRST READING TO CONSIDER. RESOLUTION NUMBER 9-26-1, WHICH IS A RESOLUTION AMENDING THE CITY OF OUR FINANCIAL POLICIES.

FINANCIAL POLICIES ARE TOOLS TO ENSURE THAT THE CITY IS FINANCIALLY ABLE TO MEET ITS CURRENT AND FUTURE SERVICE NEEDS.

FINANCIAL POLICIES GUIDE CITY COUNCIL AND MANAGEMENT POLICY DECISIONS THAT HAVE SIGNIFICANT FISCAL IMPACT.

THEY ALSO PROVIDE ACCURATE AND TIMELY INFORMATION ON THE CITY'S FINANCIAL CONDITION.

FINALLY, FINANCIAL POLICIES ESTABLISH AND MAINTAIN EFFECTIVE LONG TERM MANAGEMENT OF CITY FINANCIAL RESOURCES.

WE ARE SPECIFICALLY AMENDING THE BUDGET PROCESS SECTION IN THE CURRENT FINANCIAL POLICY, AND THIS RESOLUTION SPECIFICALLY AMENDS RESOLUTION NUMBER 9-09-25-1, WHICH WAS PASSED ON THE 28TH OF OCTOBER 2025. THE AMENDMENTS ARE AS FOLLOWS.

EXPENDITURES MAY NOT LEGALLY EXCEED APPROPRIATIONS AT THE DEPARTMENT LEVEL OR IN TOTAL FOR EACH FUND.

SECONDLY, A DEPARTMENT MAY NOT EXCEED ITS ADOPTED APPROPRIATION EVEN IF THE FUND AS A WHOLE HAS SUFFICIENT CAPACITY.

IN SUCH CASES, A BUDGET TRANSFER OR AMENDMENT IS REQUIRED.

THE NEXT THING WE'RE AMENDING IN THIS RESOLUTION IS THAT THE CITY MANAGER WILL NOTIFY THE CITY COUNCIL OF ANY OVERAGES IN DEPARTMENTS AND PROPOSED PLANS TO MITIGATE IT, INCLUDING ANY NECESSARY BUDGET TRANSFERS AND AMENDMENTS.

FINALLY, THE CITY COUNCIL WAS APPROVED. REVISIONS THAT ALTERED TOTAL EXPENDITURES OF A FUND OR INCREASE THE TOTAL APPROPRIATION FOR THE DEPARTMENT. AND THAT CONCLUDES THE AMENDMENTS WE'RE MAKING TO THE CURRENT FINANCIAL POLICIES.

WOULD LIKE TO ADDRESS ANY QUESTIONS YOU MAY HAVE.

QUESTIONS FOR LOLA. COUNCILMAN. SO LOLA, WHEN WE THE WITH THIS POLICY, BY FOLLOWING THIS POLICY, BASICALLY WHAT WE'RE DOING IS WE'RE MAKING AN AMENDMENT TO THE BUDGET TO BASICALLY TRUE IT UP.

RIGHT. IS THAT CORRECT? SO WE ARE MAKING AN AMENDMENT TO THE BUDGET TONIGHT, BUT THE FINANCIAL POLICY, AS IT STANDS, IS BEING AMENDED TO INDICATE THAT APPROPRIATIONS HAVE TO BE AT THE DEPARTMENTAL LEVEL.

SO ANY OVERAGES AT THE DEPARTMENTAL LEVEL HAVE TO BE APPROPRIATED BY CITY COUNCIL.

OKAY. OKAY. IT'S A GREAT QUESTION. SO KEEP DEALING WITH THAT.

[02:40:04]

SO. SO AT THE END. SO WE'RE GOING TO THAT WAY WE'RE OPERATING WITHIN A BALANCED BUDGET.

CORRECT. YES, SIR. OKAY. SO AT THE END OF THE YEAR, IF WE WANT TO LOOK AT ACTUALS WHICH IS WHAT WE'VE BEEN WANTING.

YEAH. WE CAN SEE WHAT THE BUDGET WAS. I MEAN, SORRY, WE PICK ON POLICE BECAUSE THAT'S WHAT WE ALWAYS DO.

IT'S, YOU KNOW, WE OVER TIME IS AN ISSUE OR HAS BEEN AN ISSUE OVER THERE.

AND WE KNOW THAT. SO WE MAKE AN AMENDMENT TO TRUE THAT BUDGET UP BECAUSE WE KNOW THE NUMBERS.

BUT AT THE END IT LOOKS LIKE WE HAVE A BALANCED BUDGET.

BUT IN ACTUALITY, WE REALLY DIDN'T. IT WAS ONLY BECAUSE IT WAS AMENDED.

IS THAT FAIR TO SAY? THAT IS CORRECT. SO IF WE WERE TO COME TO YOU AND SAY, WELL, I KNOW THAT THIS SAYS THAT WE HAVE A BALANCED BUDGET, BUT WE REALLY DIDN'T, WE CAN ASK YOU TO SAY, GO THROUGH THIS AMENDMENT LIST AND EVERY DEPARTMENT THAT WE HAD TO AMEND OR FUND, THAT WE HAD TO AMEND TO SHOW WHERE WE WERE ACTUALLY SHORT OR LONG, WE WOULD NEED TO DO THAT.

IS THAT CORRECT? YES, SIR. OKAY. SO WE WILL HAVE A BALANCED BUDGET WHERE BEFORE WE DIDN'T HAVE A BALANCED BUDGET, BUT WE HAD THOSE NUMBERS ALREADY. DOES THAT MAKE SENSE? YES. OKAY. BUT BUT ACCORDING TO POLICY, WE'RE GOING TO GO AHEAD AND MAKE THE AMENDMENT TO MAKE EVERYTHING TRUE.

IS THAT AM I PUTTING IT IN PLAIN LANGUAGE? THAT IS.

THAT IS CORRECT. IDEALLY, BEFORE EXPENDITURES OF COLE, WE SHOULD HAVE AMENDMENTS.

HOWEVER, OVERAGES SOMETIMES OCCUR AND WE AMEND AFTER THE FACT.

SO THAT'S THE SITUATION RIGHT NOW. OKAY. OKAY.

THANK YOU. THANK YOU FOR CLARIFICATION. THANK YOU.

COUNCILMAN REED. YES. NO. NO. OKAY. MISS LOLA, ANY OTHER CHANGES TO THE REST OF THE POLICY? NO, SIR. WE'RE ONLY WITHIN THAT PARTICULAR SECTION.

THE BUDGET PROCESS SECTION AND THAT SPECIFIC CLAUSE.

NUMBER FOUR. JUST NUMBER FOUR THERE. WHAT IS PAGE 15 IN MY BACKUP? YES, THAT IS CORRECT. ALL RIGHT. ANY OTHER QUESTIONS FOR MRS? OH. OKAY. GENTLEMEN, ITEM 7.3 IS BEFORE YOU. THANK YOU MA'AM.

I MOVE TO ACCEPT RESOLUTION NUMBER 060926-1 AS PRESENTED.

SECOND. MOTION AND A SECOND. ALL IN FAVOR, PLEASE SAY AYE.

AYE. ANY OPPOSED? MOTION PASSES. THANK YOU, MA'AM.

MISS LOLA, YOU'RE UP FOR ITEM 7.4. YES, I AM.

[7.4. Consideration of Ordinance No. 8249. This item is a first reading to consider an ordinance adopting budget amendments pertaining to the fiscal year 2024-2025 budget and providing an effective date. These are budget amendments to the previous Fiscal Year budget for the period from October 1, 2024 to September 30, 2025.]

SO THIS IS THE FIRST READING TO CONSIDER ORDINANCE 8249.

AN ORDINANCE ADOPTING BUDGET AMENDMENTS PERTAINING TO THE FISCAL YEAR 2024 2025.

THIS IS THE LAST STEP TO CLOSE OUT THE FISCAL YEAR 2024 2025.

REVISED FINANCIAL POLICY DOES NOT ALLOW FOR TRANSFERS WITHIN DEPARTMENTS OPERATING FUNDS FOR THOSE DEPARTMENTS THAT ARE OVER BUDGET.

SO THIS ILLUSTRATES THE CITY OF AMARILLO'S ORGANIZATIONAL CHART, WHICH SHOWS THE CITY OF AMARILLO RESIDENTS AT THE VERY TOP TO WHICH WE'RE ALL ACCOUNTABLE FOR. AMENDMENTS ARE BEING MADE TO DEPARTMENTS THAT SHOW AS BEING OVER BUDGET. ON THE FISCAL YEAR 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, WHICH WAS JUST PRESENTED.

OUR PROCESS WAS THAT THE FINANCE DEPARTMENT EXTRACTED THE NON-CASH ITEMS SUCH AS DEPRECIATION AND AMORTIZATION, AS WELL AS NON BUDGETED CAPITAL OUTLAY, ITEMS THAT WERE CHARGED TO THE DEPARTMENTS THAT WERE OVER BUDGET TO REFLECT THE ACTUAL DEPARTMENTAL COSTS. AND WE ARE AMENDING DEPARTMENTS IN THE GENERAL FUND IN THESE AMENDMENTS.

THOSE ARE THE DEPARTMENTS THAT WERE OVER BUDGET AND STARTING WITH THE POLICE DEPARTMENT, THE POLICE DEPARTMENT'S BUDGET IS BEING INCREASED BY $2,887,800 BECAUSE THEY ARE MORE IN BUDGETED.

NEXT DEPARTMENT TO BE AMENDED IS THE FIRE DEPARTMENT THAT IS BEING AMENDED BY $1,839,300.

THEY ALSO PAID OUT MORE THAN BUDGETED. NEXT DEPARTMENT IS THE CAPITAL PROJECTS AND DEVELOPMENT, WHICH IS PART OF THE STREETS DEPARTMENT. THAT BUDGET IS BEING INCREASED BY $154,600.

THEY ALSO PAID OUT MORE IN LABOR. WHICH IS IT?

[02:45:03]

NEXT WE GO TO THE GOLF DIVISION OF THE PARTICIPANT RECREATION DEPARTMENT.

THAT'S THE BLUEPRINT FOR THIS PARTICULAR DIVISION.

THEIR BUDGET IS BEING INCREASED BY $214,800. THEY PAID OUT MORE IN SUPPLIES FOR GROUND CARE THAN BUDGETED.

NEXT, WE'RE AMENDING THE LIBRARY DEPARTMENT FOR $33,500.

THAT'S AN INCREASE THAT GOES TO THEM. THEY ALSO PAID OUT MORE FOR LABOR THAN BUDGETED.

FINALLY, WE ARE AMENDING THE TRANSIT DEPARTMENT FOR $227,000.

THEY ALSO PAID OUT MORE IN LABOR THAN WHAT YOU DID.

I'D LIKE TO ADDRESS ANY QUESTIONS YOU MAY HAVE ANY QUESTIONS FOR MISS LOLA? THE MORE LABOR IS, IS THAT PRETTY MUCH ACROSS THE BOARD IN ALL THOSE DEPARTMENTS? WAS IT PRETTY MUCH JUST OVERTIME? YES, SIR. OKAY. SO ALL THOSE TOGETHER WITH THE OVERTIME.

SO MOST ALL OF THE BUDGET AMENDMENTS WE'RE DOING ARE RELATED TO OVERTIME.

SIMON'S RECOURSE TO SALARY EXPENSES IN SOME CASES OVERTIME IN OTHER CASES.

WHAT ALL THE WORK COSTS IN GENERAL. CAN WE GO BACK A COUPLE OF THOSE SLIDES RIGHT HERE? OKAY. SO POLICE AND FIRE. I UNDERSTAND.

BECAUSE WE DON'T BUDGET FOR THE OVERTIME DEAL, WHICH I STILL THAT I STILL DON'T GET IT.

WE KNOW THAT WE'RE GOING TO HAVE THE OVERTIME. WHY DON'T WE JUST BUDGET THAT AND MAKE IT A TRUE BUDGET.

AND THAT'S, I GUESS THAT'LL BE A STATEMENT THAT WE'LL, WE'LL HAVE A DISCUSSION AS WE GO THROUGH THE NEXT YEAR'S BUDGET.

BUT THE GO TO THE NEXT SLIDE. THE LIBRARY. THE LIBRARY HAS CERTAIN HOURS.

WHY? WHY WOULD THEY HAVE OVERTIME AT THE LIBRARY? SO THESE ARE ACTUAL, ACTUAL LABOR COSTS. SO THEY HAVE, THEY PAID FOR LABOR FOR SALARIES.

SO FOR FOR LEGAL COSTS. OH NO. I'M SORRY. LABOR COSTS, LABOR COSTS, SALARY COSTS.

YEAH. SO BUT LABOR COSTS IS WHAT WE DO. WE HIRE MORE LIBRARIANS THAN WE THOUGHT WE WERE GOING TO NEED.

OR WHAT'S THE REASON FOR THE FOR THE $33,000? I COULD LOOK INTO THE DETAILS FOR THAT AND GET BACK TO YOU ON THAT QUESTION.

ALL RIGHT. THANK YOU. ANY OTHER QUESTIONS FOR LILY? SO, MISS LOLA, I NEED TO GET A AN UPDATED CLEAN ACCOUNTING IN MY HEAD FOR WHERE WE'RE AT.

OKAY, SO PREVIOUSLY WE HAD HAD SOME NUMBERS THAT WERE BROUGHT TO US THAT WE HAD A TOTAL REVENUE INCREASE, AND THEN WE HAD AN EXPENDITURE DECREASE OVERALL.

BUT THEN WE HAD THESE AREAS THAT WERE OVER BUDGET.

AND WHAT I REMEMBER WAS FIRE WAS ROUGHLY 3.5 SOMETHING, OR MAYBE IT WAS 3.7, BUT NOW IT'S DOWN TO 1.8.

YOU SAID YOU TOOK NON-CASH ITEMS OUT OF THAT EQUATION.

YES, SIR. GIVE ME AN EXAMPLE OF A NON-CASH ITEM IN FIRE.

SO WE HAVE AMORTIZATION COSTS ARE NON-CASH ITEMS AND THOSE ARE FOR LEASED COMPUTERS.

SO WE AMORTIZE THOSE EXPENDITURES. BUT THEY'RE NOT CASH EXPENSES THAT GO OUT.

SO WHEN WE ARE SAYING LIKE, WHAT'S THE HARD COST TOTAL TO RUN THAT DEPARTMENT.

I KNOW WE GET DEPRECIATION. MAYBE THEY AMORTIZE A FEW THINGS.

BUT BUT THOSE ARE JUST GOVERNMENT ACCOUNTING PRACTICES THAT WE CAN IMPLEMENT, BUT THEY THEY REALLY DO NOT HIT THE BALANCE OF THAT CHECKBOOK.

CORRECT? THAT IS CORRECT. OKAY. SO THESE BALANCES THAT YOU'VE NOW RAN ARE OUR HARD COST COST OVERRUNS FOR THESE REPRESENTED DEPARTMENTS.

YES. SO POLICE IS NOT OVER $6 MILLION. THEY'RE OVER 2.887 IN ACTUALS.

YES. OKAY. I DON'T KNOW BECAUSE I HAVEN'T HAD TIME TO LOOK AT THE AUDIT.

BUT DOES THE AUDIT REFLECT THAT SAME 2.887 NUMBER.

SO YOU WILL SEE A DIFFERENCE. THE AUDIT OVER MR. KRISHNA LEE USED THE NUMBERS AS OF THE LAST APPROVED AMENDMENT BY COUNCIL.

SO EVEN IF HE WERE TO USE THIS AMENDMENT YOU STILL SEE A DIFFERENCE TO WHICH REFLECTS THOSE NON-CASH ITEMS BECAUSE THOSE THE THE AGGREGATE TOTAL IS SHOWN IN THE AUDIT. HOWEVER, FOR BUDGET PURPOSES.

WE DON'T WANT TO HEAR THESE NUMBERS, BUT THE AUDIT HAS TO REFLECT THE TOTAL NUMBERS.

OKAY. IF I COULD ASK IF YOU WOULDN'T MIND BRINGING BACK FOR THE NEXT MEETING ON THE TOTALS AGAIN, LIKE WE HAD WITH MISS KATRINA WHERE SHE RAN HERE, HERE WAS YOUR TOTAL.

OKAY. REVENUES OVER EXPENDITURES. NET. AND SO IN THAT SCENARIO, IT WAS $19.8 MILLION.

[02:50:08]

AND THEN WE HAD SO MUCH THAT WE WERE OVER BUDGET.

WE LEFT THAT OUT AND WE THOUGHT WE WERE GOING TO END UP WITH 11 MILLION LEFT.

RIGHT. AND CAN YOU IF YOU CAN RUN THAT AGAIN, WITH THESE NUMBERS THAT ARE REFLECTIVE OF ONLY CASH ITEMS WITH NO NON-CASH.

THAT'D BE VERY HELPFUL FOR US TO SEE, LIKE, WHAT IS OUR ACTUAL CASH POSITION IN THE GENERAL FUND AT THE END OF THE YEAR FOR ALL THE DEPARTMENTS IN THE GENERAL FUND? YES, MA'AM. AND I THINK IT'S IT'S ALREADY DONE FOR YOU HERE WITH THE OVERS.

WHAT WE WOULDN'T SEE AS THE UNDERS. HOW FAR UNDER BUDGET ARE WE ON THOSE OTHER ITEMS? NOW, I'M ASSUMING WE COULD SEE ALL THAT IN THE AUDIT, RIGHT? YES WE CAN. IT'S THERE. YES. I'M JUST ASKING YOU TO MAKE A SUMMARY SHEET.

OKAY. IF YOU DON'T MIND. OKAY. THAT'S FINE. YEAH.

OKAY. AND THEN JUST JUST TWO COUNCILMAN READ.

YOU KNOW, A WHILE BACK, YOU WOULD COME IN WITH A REQUEST YOU REALLY WANTED, LIKE, ZERO BASED BUDGET.

AND I UNDERSTAND THE BENEFITS TO THAT. I ALSO UNDERSTAND THE COMPLEXITIES TO THAT IN GOVERNMENT AND EFFICIENCIES AND RUNNING A LOT OF LARGE LABOR DEPARTMENTS AND THINGS LIKE THAT. SO MAYBE ZERO BASED BUDGETING IS NOT SOMETHING THAT WE CAN ACTUALLY STRETCH TO.

BUT THIS RIGHT HERE WITH THE UPDATED FINANCIAL POLICY AND WITH EVERYTHING THAT YOU GUYS ARE IMPLEMENTING ON ALL THE CIPS AND ALL THAT, THIS IS AS CLOSE TO ZERO BASED BUDGETING AS I HAD EVER HOPED TO GET.

SO LIKE, I'M VERY SATISFIED THAT WE COULD RUN IT THIS TIGHTLY AND TO HAVE AXLES THAT ARE FORECASTING, WE THINK WE NEED TO COME BACK AND ASK FOR THIS AMENDMENT OR WE JUST WENT OVER WE NOW WE NOW HAVE AMENDMENT.

I DON'T KNOW HOW THE REST OF THE MUNICIPALITIES WORK AROUND TEXAS, BUT I BET YOU THEY'RE NOT RUNNING THAT QUICKLY ON AVERAGE.

SO I THINK WE WOULD BE PERFORMING VERY WELL. AND I KNOW FROM A COUNCIL POSITION, THAT'S EXACTLY WHAT WE'VE WE'VE WANTED TO SEE.

SO THOSE AXLES AND THESE AMENDMENTS ARE ARE VERY HELPFUL.

SO I, I THINK THIS GIVES ME EVERYTHING THAT I HOPE FOR, AND I JUST WANT TO COMMEND YOU GUYS FOR GETTING IT DONE.

AND SO MISS LOLA, YOU ONLY BEEN WITH US WHAT NOW? TWO MONTHS. TWO MONTHS. WELL HECK OF TWO MONTHS.

WELCOME ABOARD. THANK YOU, THANK YOU. APPRECIATE YOU AND YOUR STAFF.

THANK YOU. ANY OTHER QUESTIONS FROM MISS OH. OKAY, GENTLEMEN.

ITEM 7.3. IS THAT WHERE I'M AT? NO. 7.4 IS BEFORE YOU.

I MOVE THAT WE ADOPT ORDINANCE 8249 AS PRESENTED.

SECOND. MOTION AND A SECOND. ALL IN FAVOR, PLEASE SAY AYE.

AYE. ANY OPPOSED? MOTION PASSES. SO BEFORE WE MOVE ON TO SEVEN FIVE MRS. MISS LOLA, THIS TAX STATEMENT THIS TAX IMPACT STATEMENT, IS THAT A MATERIAL TO ANYTHING THAT WE'VE DONE.

WE DIDN'T CHANGE ANY KIND OF TAX RATES OR ANYTHING LIKE THAT.

WHY DO WE HAVE THAT HERE. I GUESS IN THE OUTLINE.

I CAN SPEAK TO THAT IF YOU DON'T MIND. YES, MA'AM. SO THE TAX IMPACT STATEMENT IS SOMETHING THAT WE HAVE TO ADD BASED ON LEGISLATION.

ANYTIME WE ADOPT A BUDGET OR DISCUSS THAT BUDGET.

AND SO THIS IMPACT STATEMENT THAT YOU SEE ON YOUR AGENDA TODAY IS THE VERY SAME ONE THAT YOU SAW ON YOUR AGENDAS BACK IN SEPTEMBER WHEN WE ADOPTED IT.

OKAY. AND SO WE HAVEN'T CHANGED ANY TAX RATE OR ANYTHING.

AND THAT IS IT'S JUST INFORMATION FOR THE AVERAGE TAX BILLS OR MEDIAN TAX BILLS FOR THE BUDGET THAT YOU HAVE ADOPTED.

MINISTERIAL PROCEDURAL REQUIREMENT JUST TO INCLUDE IT.

IT'S PART OF YOUR TRUTH IN TAXATION AND THAT TRANSPARENCY ON CORPORATE TAXES.

WELL THANK YOU FOR SPEAKING TO THAT. OKAY GENTLEMEN.

ITEM 7.5 HAS ALREADY BEEN TAKEN ACTION ON AND IS TABLED.

ITEM 7.6 AIRPORT CAPITAL. MR. CONNOR. GOOD EVENING, MAYOR AND CITY COUNCIL.

[7.6. Consider Approval - Airport Capital Project Budget Transfers. This item considers approval for the transfer of budget funds from numerous Airport Capital Projects to provide necessary financial support to other Airport Capital Projects and O&M budget lines that currently require additional funding. The total amount to be transferred is $1,339,091.07. All transfer items underwent a CIP review process, CIP Committee review, and City Manager review. (Michael Conner, Director of Aviation) ]

SO THIS PARTICULAR ITEM TALKS ABOUT OUR BUDGET TRANSFERS.

AND I THINK THIS IS PROBABLY THE FIRST TIME THAT WE'VE GONE THROUGH THIS WHOLE PROCESS WITH THE NEW CIP COMMITTEE.

AND SO WE WERE JUST KIND OF GOING THROUGH THE ENTIRE THING.

AND SO YOU LET ME KNOW IF YOU WANT HOW YOU WANT THIS TO GO.

BUT I HAVE A FEW NOTES JUST AT THE BEGINNING HERE.

SO WE DID TAKE ALL THESE ITEMS THROUGH THE CIP COMMITTEE AND THEY'RE APPROVED THERE.

WE'VE BEEN WORKING ON THESE TRANSFERS FOR SEVERAL MONTHS.

IT'S BASICALLY TO ENSURE THAT ALL OF OUR PLANNED PROJECTS ARE FULLY FUNDED.

MANY OF THE PROJECTS WE'RE LOOKING AT TO TRANSFER FUNDS FROM OUR GRANT FUNDED PROJECTS THAT ORIGINALLY HAD A 10% MATCH,

[02:55:02]

BECAUSE MOST OF THESE ARE ALL OF THESE ACTUALLY ARE GRANTS WITH THE FAA.

AND THEN SO THAT WAS THE 10% WHEN THEY WERE BUDGETED, RIGHT? SO AFTERWARDS, THEN WE WENT TO THROUGH THE GRANT PROCESS, THE FAA DECIDED THAT THEY WERE JUST GOING TO REQUIRE 5% MATCH.

SO WE HAD THOSE 5% NUMBERS THAT WERE LEFT OVER IN OUR BUDGET.

MOST OF THE OTHER TRANSFERS ARE FROM COMPLETED PROJECTS THAT HAVE FUNDS LEFT IN THEM.

SO BUT BASICALLY, WE'RE JUST TRYING TO MAKE THE BEST USE OF THE FUNDS THAT WERE APPROVED AND ALLOTTED FOR THE AIRPORT.

AND SO WE HAVE 14 TRANSFERS WITHIN THE CIP PROGRAM, AND THEN TWO TRANSFERS FROM CIP TO A COUPLE O&M PROJECTS.

AND IF YOU'D LIKE ME TO GO THROUGH THE ENTIRE LIST, I CAN.

OTHERWISE I'D BE OPEN TO WHATEVER YOU WOULD LIKE TO DO.

GENTLEMEN, I KNOW YOU'VE HAD THAT LIST AND YOU CAN LOOK INTO IT, BUT SPECIFICALLY, IF YOU HAVE ANY QUESTIONS ON ANY OF THOSE ITEMS WE CAN TALK IN DEPTH ABOUT THEM. NOT HEARING ANYTHING. DO YOU HAVE ANY QUESTIONS FOR MR. CONNOR ON WHAT HE'S DOING OUT THERE AT THE AIRPORT? OKAY. ITEM 7.6 IS IN FRONT OF YOU, GENTLEMEN.

NO, I THINK WE'RE READY TO ENTERTAIN A MOTION. I MOVE TO APPROVE ITEM 7.6 AS PRESENTED.

SECOND. MOTION AND A SECOND FROM PLACE ONE. ALL IN FAVOR, PLEASE SAY AYE.

AYE. ANY OPPOSED? MOTION PASSES. MR. CONNOR, THANK YOU FOR DOING SUCH AN EXCELLENT JOB OUT THERE AT THE AIRPORT.

IT LOOKS GREAT. THANK YOU. OKAY. ENGINEERING SERVICES CONTRACT.

[7.7. Consider Approval - Amendment No. 1 to Agreement for Engineering Services between City of Amarillo and Kimley-Horn and Associates, Inc. This item considers the approval of Amendment No. 1 to the Agreement for Engineering Services between City of Amarillo and Kimley-Horn and Associates, Inc. This amendment will add additional scope of work to provide engineering services for the design of the 58th Avenue Sanitary Sewer Extension. The scope of work will be an amendment to the Osage Reconstruction project and includes the design of approximately 5,280 linear feet of sanitary sewer infrastructure to support planned development. ]

HERE. WE'VE GOT A ITEM 7.7. MR. DANFORTH, YOU'RE UP.

MAYOR. COUNCIL. THANKS FOR SAVING ME FOR LAST.

ONCE AGAIN. THAT'S TWICE, ISN'T IT? I'M PRETTY SURE YOU HAVE SOME INFLUENCE ON MY POSITION ON THIS THING, SO WE'RE NOT SURE HOW YOU KEEP FALLING AT THE END OF THE AGENDA.

I'LL LOOK INTO THAT. THIS IS AN INTERESTING ITEM.

IT'S COMING TO YOU AT THE PROPER TIME. WITH MR. FREEMAN'S PRESENTATION. THIS KIND OF ROLLS INTO THAT CONVERSATION QUITE A BIT.

AND WHAT WE'RE TALKING ABOUT HERE IS CITY STAFF PREVIOUSLY HAD MADE A COMMITMENT TO THE WILLIAMS GROUP THAT THEY WOULD DO A PROJECT FOR THEM AS FAR AS ENGINEERING FOR SANITARY SEWER LINE, FOR FUTURE DEVELOPMENT THAT COMMITMENT WAS MADE, BUT AND IT WAS A CIP WAS CREATED, BUT IT WASN'T FUNDED PROPERLY.

CONVERSATIONS HAVE BEEN HAD WITH THE DEVELOPER DEVELOPMENT GROUP ABOUT THIS, ABOUT THE COMMITMENTS THAT THE CITY HAD MADE TO THEM.

AND GOING FORWARD, WE FELT LIKE THE BEST SCENARIO FOR US WOULD BE TO MOVE FORWARD WITH MAKING A CHANGE OR AN AMENDMENT TO A PROJECT THAT WE CURRENTLY HAVE, WHICH IS THE RECONSTRUCTION OF THE STREET ON OSAGE.

THAT PROJECT IS CURRENTLY AT A LITTLE OVER 70% COMPLETE, BUT ALL OF THE UTILITIES THAT ARE LOCATED WITHIN THAT STREET FOR THAT RECONSTRUCTION WOULD TIE TO THIS PROJECT. THE REASON FOR US BRINGING AN AMENDMENT TO THAT EXISTING CONTRACT ALLOWS US TO TAKE THAT KNOWLEDGE AND CURRENTLY EXISTS ON THAT PROJECT. INSTEAD OF STARTING FROM GROUND ZERO WITH A NEW ENGINEER COMING UP WITH A NEW SCOPE.

BECAUSE TECHNICALLY THE TWO PROJECTS TIE TOGETHER.

SO WHAT WE'RE BRINGING FORWARD TO YOU TODAY IS BASICALLY YOUR PERMISSION TO MOVE FORWARD WITH THIS, BUT UNDERSTAND THAT THIS PROJECT IS CURRENTLY NOT FUNDED BECAUSE IT'S NO LONGER IN THE CIP LIST.

THIS FORCES US TO GET TO THE POINT TO WHERE WE SIT DOWN WITH THE CITY CIP COMMITTEE AGAIN, TO LOOK AT A POTENTIAL FUNDING SOURCE TO MOVE FORWARD WITH FUNDING THE PROJECT.