[1.1. 8:00 AM - City Council convenes in City Council Chamber]
          [00:00:02]
          GOOD, GOOD. 
          ALL RIGHT. I'VE GOT AN AGENDA HERE, SAYS 8 A.M. CITY COUNCIL CONVENES. I SAY WE SHOULD CONVENE. SO RECOGNIZING A QUORUM, WE WILL OPEN OURSELVES UP HERE IN A MEETING. 
          LOOKS LIKE WE'RE DOING BUDGET 
          [1.2. City Council Budget Workshop]
WORKSHOP, SO WE'RE ALL IN THE RIGHT PLACE. WE ALL BROUGHT OUR 1,016 PAGES, SO READY TO ROLL. WOULD YOU GUYS LET ME OPEN US IN PRAYER, AND THEN WE WILL JUMP INTO IT. 
          FATHER GOD, WE THANK YOU FOR A GREAT DAY. WE THANK YOU THAT WE CAN GET UP AND WE CAN GO ABOUT OUR BUSINESS, BUT THAT WE CAN BE MINDFUL OF YOU, MINDFUL OF EACH OTHER, CONSCIENTIOUS ABOUT OUR ACTIONS, OUR BEHAVIORS, AND HOW WE TREAT EACH OTHER, RECOGNIZING THAT IT MATTERS MORE, IT MEANS MORE THAN JUST THE DAY-TO-DAY OF THIS WORLD. 
          SO WE THANK YOU FOR... THE ABILITY TO SERVE OUR PUBLIC AND TO COME IN HERE AND SIT IN THIS PLATFORM AND IN THESE SEATS. I ASK THAT FAITH WOULD BE RECOGNIZED HERE IN THIS ROOM, THAT WE WOULD HAVE FAITH NOT IN MAN, NOT IN GOVERNMENT, DEFINITELY NOT IN MONEY, FAITH THAT WE ARE IN THE SEATS THAT YOU'VE PUT US IN AND THAT WE CAN BELIEVE IN YOU. HOLY SPIRIT, WE NEED YOUR LEADING, YOUR GUIDANCE. 
          KING JESUS, WE NEED YOUR DIRECTION. TO HEAR YOUR VOICE IN OUR EARS. FATHER GOD, WE NEED YOU TO GIVE US STRENGTH, COURAGE, WISDOM, AND DISCERNMENT TO WALK THIS OUT. WE PRAY THAT AS WE STEWARD THE MONIES YOU GIVE US, THEY WOULD BE NOT IN OUR HANDS, BUT PLACED IN YOUR HANDS. I PRAY THAT YOU WOULD GIVE US THE GIFT OF PROPHECY TO SEE INTO THE FUTURE HERE AS WE TRY TO LOOK 15, 18 MONTHS DOWN THE ROAD. 
          SHOW US WHAT WE NEED TO KNOW HERE TODAY AND HELP US WORK AS A TEAM. HELP US TO PULL ON THE ROPE IN THE SAME DIRECTION AND TO BE MINDFUL THAT WE DON'T SERVE OURSELVES OR EACH OTHER, BUT WE SERVE THOSE PEOPLE ON THE OTHER SIDE OF THAT WALL. IT'S IN ALL OF THIS THAT WE ASK IN KING JESUS' NAME. AMEN. THANK YOU, GUYS. 
          MR. CITY MANAGER, I THINK YOU'RE UP. ABSOLUTELY. MAYOR AND MEMBERS OF COUNCIL, THANK YOU FOR BEING HERE TODAY. TODAY BEGINS OUR... FIRST DAY OF THE BUDGET WORKSHOP WEEK. 
          THIS IS A HALF DAY BECAUSE WE DO HAVE A COUNCIL MEETING THIS AFTERNOON. EXECUTIVE STARTS AT 1 O'CLOCK, SO I BELIEVE WE HAVE LUNCH COMING IN AT 12. IS THAT RIGHT, STEPHANIE? SO WE HAVE A 12 O'CLOCK LUNCH START TIME WITH A 1 O'CLOCK EXECUTIVE SESSION AND A 3 O'CLOCK REGULAR SESSION AFTER THAT. SO AGAIN, THIS IS THE START OF A WEEK FOR WORKSHOP. WE'VE SET ASIDE THURSDAY AND FRIDAY AS WELL FOR ADDITIONAL DAYS. I LIKE TO ALWAYS REMIND THE COUNCIL THAT IT DOES HAVE TO STOP THIS WEEK AS WELL. IF THE COUNCIL, BASED OFF DISCUSSIONS THIS WEEK, OFF THE DIRECTION AND GUIDANCE YOU GIVE US, WE CAN CERTAINLY ADD MORE DAYS NEXT WEEK, THE FOLLOWING WEEK, AND AS MANY AS YOU GUYS NEED TO GET THE JOB DONE THAT YOU GUYS FEEL NEED TO BE DONE. 
          SO, AGAIN, THIS IS THE START OF A PROCESS. THIS WEEK IS MEANT TO EDUCATE YOU GUYS. 
          LIKE THE MAYOR SAID, YOU GUYS RECEIVED YOUR BUDGET BOOKS LATE LAST WEEK. IT'S 1,000-PLUS PAGES. BUT THE INTENT OF THIS WEEK HERE IS TO WALK YOU ALL THROUGH IT. 
          AND SO THAT'S WHY WE'RE HERE TODAY TO START DOING THAT. WE DO HAVE AN AGENDA KIND OF DEDICATED FOR TODAY. LOLA'S GOING TO TALK ABOUT THAT IN A MOMENT ON ONE OF HER FIRST SLIDES. IN FACT, THERE YOU GO ON THE SCREEN THERE. SO WE HAVE AN AGENDA IDENTIFIED FOR TODAY THAT WE'RE GOING TO WALK THROUGH. AS COUNCIL HAS QUESTIONS, OBVIOUSLY WE'RE GOING TO DO OUR ABSOLUTE BEST TO TRY TO ANSWER THOSE TODAY ON THE SPOT IF WE CAN. 
          BUT IF WE CAN'T, IF THE COUNCIL WOULD ALLOW US, GIVEN WE DO HAVE MULTIPLE DAYS, WE WILL WRITE THE QUESTION DOWN AND GET IT BACK TO YOU ALL. AND SO, AGAIN, IT'S A LOT OF MATERIAL HERE. I WISH THAT WE COULD HAVE IT ALL MEMORIZED, BUT WE DON'T. 
          AND SO A LOT OF LONG HOURS HAVE GONE INTO THIS BY MANY PEOPLE, SO IT'S A LOT OF DATA TO TRY TO KEEP IN OUR HEADS. SO AS YOU ALL HAVE QUESTIONS, IF WE CAN ANSWER IT, WE WILL. 
          BUT IF WE DON'T, WE WILL WRITE THEM DOWN AND GET THEM BACK TO YOU QUICKLY. AND SO REAL QUICK BEFORE I TURN IT OVER TO LOLA, I'D LIKE TO JUST QUICKLY THANK HER AND THANK JUSTIN AND KATRINA TO MY LEFT. I THANK YOU FOR THEM AND THEIR TEAM FOR ALL THE WORK THAT THEY PUT IN. 
          THEY WENT RIGHT FROM AUDIT RIGHT INTO BUDGET. 
          IN FACT, THEY DID A LOT OF OVERLAP. AND SO A LOT OF WORK BETWEEN THEM AND THEIR STAFF HAVE GONE INTO THE BUDGET HERE. A LOT OF MANY HOURS OF WORK. AND I THANK THEM FOR THAT. AND I THANK ANDREW AND DONNIE AND STEPHANIE AND JERRY AND JASON FOR ALL THEIR LEADERSHIP AS WELL, PULLING THIS TOGETHER. 
          SO A LOT OF HOURS AND DAYS AND WEEKS HAVE GONE INTO THIS PROCESS HERE TO PRODUCE THAT BOOK IN FRONT OF YOU ALL. SO IT'S NOT DONE. 
          THIS IS NOW THE NEXT STEP OF THE PROCESS TO GET YOU ALL'S INPUT. AND SO, AND I THINK WE'RE READY TO GO. 
          SO WITH THIS, I AM GOING TO TURN OVER TO LOLA, AND SHE'S GOING TO DRIVE FOR TODAY. I THINK ANDREW'S GOING TO SPEAK A LITTLE LATER TODAY, AND THEN WE'LL ALL CHIP IN AS WELL. SO LOLA, I'M GOING TO TURN IT OVER TO YOU AND LET YOU DRIVE FROM HERE. THANK YOU. 
          [00:05:07]
THANK YOU. 
          SURE. 
          SO THE AGENDA FOR THIS WEEK IS AS FOLLOWS, AND I'LL BE FOLLOWING THROUGH THE SLIDES UP ABOVE. 
          TODAY IS A HALF-DAY INTRODUCTION OF THE DRAFT BUDGET. WE'RE GOING TO BE GOING THROUGH THE REVENUE HISTORY AND PROJECTED GROWTH. WE'LL HAVE A REFRESHER ON TRUTH IN TAXATION, AND WE'LL PRESENT THE BUDGET SUMMARY. AS WELL AS PROPOSED FEE CHANGES, COST RECOVERY IMPLEMENTATION, AS WELL AS MAJOR CHANGES TO THE BUDGET, CASH FLOWS, AND FUNDS AVAILABLE TO ALLOCATE FOR THE FISCAL YEAR. ON THURSDAY, WE'LL COME BACK FOR A FULL DAY TO ADDRESS ANY QUESTIONS YOU MAY HAVE AND DIVING DEEPER INTO AREAS OF INTEREST. ON FRIDAY, WHICH IS THE 14TH OF AUGUST WILL HAVE A FULL DAY TO CONTINUE ADDRESSING ANY QUESTIONS COUNCIL HAS AND ALSO RECEIVE DIRECTION OF CHANGES TO THE BUDGET BEFORE FINAL ADOPTION. 
          IN THIS SECTION OF THE PRESENTATION I'LL BE COVERING MAJOR REVENUES INCLUDING SALES TAX, GROSS RECEIPTS FOR BUSINESS TAXES, HOTEL OCCUPANCY TAXES, UTILITY SALES, AS WELL AS GOING OVER THE TRUTH IN TAXATION SECTION OF OUR TAX CODE, AS WELL AS REVIEWING THE PROPOSED PROPERTY TAX RATE FOR FISCAL YEAR 2026-2027. WE HAVE AN OVERVIEW OF SALES TAX HISTORY FROM 2015-2016 ALL THE WAY THROUGH TO 2024-2025, AND THESE ARE ACTUAL SALES TAX FIGURES. 
          AS YOU CAN SEE, OUR TAXES FOR SALES TAX HAVE GONE UP FROM 2015 AT $56 MILLION TO $79.5 MILLION AS OF THE END OF FISCAL YEAR 2024-2025, AND WE HAVE A BREAKDOWN OF THE DISTRIBUTION OF THE SALES TAX RATE UP ON THE SLIDE AS WELL. 
          SO WE ALSO SHOW OUR CURRENT SALES TAX COLLECTION FOR 2025-2026 THROUGH JUNE. WE HAVE COLLECTED $72.7 MILLION IN SALES TAXES, AND WE ESTIMATE THAT AT THE END OF THIS FISCAL YEAR, 2025-2026, WE'LL BE AT APPROXIMATELY $87 MILLION IN SALES TAX RECEIPTS. WE'RE PROJECTING FOR THE CURRENT BUDGET YEAR, 2026-2027, THAT OUR SALES TAX WILL BE AT $90.5 MILLION. I'LL WEIGH IN HERE ON THE SALES TAX FORECASTING. 
          SO WE TOOK A DEEPER DIVE WHEN IT CAME TO ANALYZING OUR PAST GOING BACK TO 2008-2019. WE LOOKED AT... THE HISTORICAL TRENDS OF THE COLLECTIONS, BUT WHAT WE DID FURTHER WAS GOING INTO OUR ZACTAX SOFTWARE. 
          THAT'S WHERE WE GET OUR CONFIDENTIAL SALES TAX DATA. 
          BY INDUSTRY TYPE, YOU CAN ACTUALLY DRILL DOWN INTO THE ACTUAL BUSINESS. 
          FORTUNATELY, WE CAN'T SHARE THE BUSINESS DATA, BUT WE CAN TALK ABOUT THE HIGHER LEVEL INDUSTRY PERFORMANCE MEASURES. WHAT WE ARE SEEING, WE'RE SEEING ALMOST ACROSS THE BOARD, VERY STRONG PERFORMANCE IN ALL THE DIFFERENT CATEGORIES. 
          RETAIL, GENERAL SERVICES, AND FOOD ARE IN THE 68% GAIN IN THEIR 12-MONTH AVERAGES. 
          PROFESSIONAL AND SERVICES ACCOMMODATION, THOSE ARE THE ONLY TWO CATEGORIES THAT WEREN'T SEEING INCREASES. 
          THEY'RE KIND OF RELATIVELY FLAT. WHOLESALE ALSO SAW LARGE INCREASES AND THEN MANUFACTURING WAS ANOTHER ONE THAT SAW PRETTY GOOD INCREASES, BUT MANUFACTURING IS ALSO ONE OF THE MORE VOLATILE TO EITHER REGIONAL OR NATIONAL. 
          PERFORMANCE. SO WE ARE CAREFUL WHEN WE LOOK AT THAT CATEGORY. AND THEN WE ARE STILL SEEING VERY STRONG DOUBLE DIGIT INCREASES IN ONLINE SALES. THOSE ARE THE AMAZONS OF THE WORLD THAT IF YOU GET DELIVERED TO AN ADDRESS IN TOWN, WE COLLECT THE SALES TAX FROM IT. SO STILL SEEING STRONG PERFORMANCE THERE. AS LOLA MENTIONED, WE ARE TRACKING VERY WELL ABOVE BUDGET IN THE CURRENT FISCAL YEAR ABOUT EIGHT TO NINE PERCENT OR APPROXIMATELY SEVEN MILLION KEEP IN MIND WE DO HAVE ABOUT 500,000 THAT WE REBATE. THAT'S FOR SYNERGY AND BUC-EE'S. SO THAT COMES RIGHT OFF THE TOP OF THAT PROJECTED 90,500,000 FOR THE CURRENT BUDGET. 
          BUT BASICALLY 
          [00:10:01]
WITH ALL THE REVIEW, ANALYZING THE DATA, IT FEELS REASONABLE TO CAPTURE ALL THE GROWTH THAT WE'RE SEEING IN THIS FISCAL YEAR AND ADD ANOTHER 3% CONSERVATIVE NUMBER ON TOP OF THAT AS FAR AS PRODUCING THAT 90,500,000. 
          WHAT WE ARE CONTINUING TO LOOK AT, WHEN WE RAN THESE PROJECTIONS, THAT WAS BASED ON JUNE COLLECTIONS. 
          WE NOW HAVE JULY, SO WE MIGHT BE ABLE TO SQUEEZE A LITTLE BIT MORE GROWTH IN THERE. AND THEN WEDNESDAY OF THIS WEEK, WE WILL GET OUR AUGUST NUMBERS. 
          SO WE'LL HAVE 11 MONTHS OUT OF THE 12-MONTH FISCAL YEAR THAT WE CAN COME BACK TO YOU ON THURSDAY AND FRIDAY WITH A MUCH BETTER NUMBER. 
          HOPEFULLY, WE HAVE ANOTHER STRONG AUGUST, AND MAYBE WE CAN, BETWEEN JULY AND AUGUST, ESTIMATE. MAYBE ANOTHER MILLION ON TOP OF WHAT WE'VE BEEN DISCUSSING IN THIS PROPOSED BUDGET. 
          QUICK QUESTION. WE'VE GOT SOME PAGES HERE. SO WATER AND SEWER DRAINAGE, A COUPLE OTHERS. ARE THESE ON THE TABLE BECAUSE THEY'RE DIFFERENT THAN WHAT'S IN THE BOOK? THOSE ARE NEW PAGES TO SWAP OUT. YES, SIR. 
          OKAY. AND LOWELL WILL BE COVERING THOSE. MOST OF THOSE ARE CASH FLOW AND DEBT RELATED THAT WE ARE STILL FINE-TUNING THIS PAST WEEK. SO WE'VE MADE A FEW CHANGES TO THESE PAGES. 
          YES, SIR. OKAY, AND THEN YOU'LL GO THROUGH THEM ALL, BUT WE NEED TO SWAP THEM OUT IN OUR EXISTING BOOK. YES, SIR. 
          THAT'S CORRECT. SO ON OUR SALES TAX, OUR BUDGET IS GOING TO BE WHAT PERCENTAGE OVER HOW WE THINK WE'RE GOING TO FINISH THIS YEAR? SO, YES, 3% OVER ESTIMATED ACTUALS OF THIS YEAR. AND WHEN YOU LOOK AT THE 10-YEAR TREND, ON THE ON THE I GUESS IT'S BEEN IT'S AVERAGED OUT ABOUT 3.8 PERCENT YES SIR I GUESS MY QUESTION WOULD BE IS THAT IS THAT IN A UH CONSERVATIVE UH ESTIMATE IS IT KIND OF MIDDLE OF THE ROAD IS IT KIND OF OUT THERE BECAUSE I IF YOU I JUST WONDER WHAT IT WOULD BE IF WE TOOK OUT YOU KNOW WE HAD TWO ANOMALY YEARS OUT OF THOSE YEARS WHERE WE WERE AT 12 AND 10 PERCENT BUT YOU KNOW WHAT WOULD THE, YOU KNOW, WHAT WOULD THE PERCENTAGE BE? JUST ASKING YOU THIS SALES TAX NUMBER THAT WE'RE FORECASTING FOR NEXT YEAR'S BUDGET, IS IT RIGHT ON? IS IT A LITTLE AGGRESSIVE? I MEAN, I KNOW WE DON'T KNOW, BUT IT'S LOOKING BACK AT HISTORY, PARTICULARLY TAKING THOSE TWO OUT. I THINK LOOKING AT THE ACTUAL INDUSTRY DATA AND SEEING HOW WIDESPREAD AND DIVERSE OUR RETAILERS ARE AND WHAT WE'RE BRINGING IN, WE'RE NOT HOPING ON ONE INDUSTRY TO KEEP US AT THESE HIGHER LEVELS. 
          IT'S REALLY SPREAD ACROSS, INCLUDING ONLINE SALES. SO IT FEELS LIKE MAYBE THIS IS ANOTHER STABILIZATION POINT LIKE WE HAD AFTER COVID. WE KIND OF INCH UP TO THAT NEW LEVEL, BENEFITING, OF COURSE, FROM CONSTRUCTION AND EVERYTHING GOING ON. 
          BUT PLUGGING ALL THAT IN, IT'S STILL SUPPORTED ABOUT 3%. THE MORE AGGRESSIVE APPROACH WOULD PROBABLY BE IN THE 4% TO 5% RANGE. 3% ALLOWS US TO CONTINUE THE PATH WE'RE ON AND STILL HAVE THAT FLEXIBILITY OF ONE-TIME SPENDING OR HELPING TO OFFSET OVERTIME BECAUSE TYPICALLY WE RECOMMEND THESE CONSERVATIVE NUMBERS AND WE USUALLY BEAT THEM. IF WE GO A LITTLE HIGHER, IT WILL BE A LITTLE TIGHTER AS FAR AS WHETHER WE'LL BE ABLE TO MEET THAT TARGET OR NOT. 
          AND I'VE NOTICED IN KIND OF THE STATEWIDE REPORTS, WE SEEM TO BE KIND OF RIGHT AT THE TOP. OR I THINK IT'S LIKE MIDLAND, ABILENE, AMARILLO IS LEADING THE STATE ON THAT. SAN ANTONIO. 
          IF THAT'S TREND OUT OR IF THERE'S SOMETHING GOING ON THAT COULD COME BACK TO BITE US. RIGHT. AND WE BENEFIT A LITTLE BIT BETTER, US, LUBBOCK MIDLAND, THAT WE'RE KIND OF THE ONLY GAME FOR 150-MILE RADIUS COMPARED TO, LIKE, METROPLEX. THEY'RE REALLY KIND OF COMPETING AGAINST EACH OTHER IN CLOSE PROXIMITY. OURS IS A LITTLE BIT MORE RELIABLE, PARTICULARLY WITH THE ONLINE SALES AND JUST THE MEDICAL DISTRICT, EVERYTHING THAT ENCOURAGES PEOPLE TO COME TO AMARILLO. WE STAY PRETTY. 
          PRETTY STEADY IN OUR COLLECTION DATA. 
          THANK YOU. HEY, ANDREW, OR, WELL, EITHER WAY, I'VE GOT A QUESTION. SO YOU SAID WE'RE GOING TO BASE OFF SALES TAX PROJECTED AT $90 MILLION. IS THAT CORRECT? YES. SO IS THAT, MAYBE I'M DOING THE MATH WRONG, BUT IS THAT NOT A 13% INCREASE OVER 24, 25? WELL, IT'S CAPTURING THIS YEAR, THEN ADDING 3%. SO WE'RE PROJECTING TO CAPTURE ALMOST $90 MILLION THIS YEAR. THE PERCENTAGE THAT COMES FROM SIMPSON-ASTOR WAS THE REVISED ESTIMATE VERSUS PROPOSED BUDGET. SO THAT WAS THE PERCENTAGE THAT COMES FROM SIMPSON-ASTOR. OKAY. OKAY. 
          THANK YOU. 
          MS. LOLA, AND I APPRECIATE THE DISCUSSION. I THINK IT'S A GOOD START. SO $256 WAS WHAT WE THOUGHT WE WOULD START WITH IN GENERAL FUND, JUST FOCUSING ON OVERALLS, LIKE FOR GENERAL FUND. 
          [00:15:02]
PROJECTED YEAR-END IS 267, SO ROUGHLY $11.2 MILLION DIFFERENCE IN REVENUES FOR CURRENT YEAR IS PROJECTED, RIGHT, MR. FREEMAN? REPEAT THAT NUMBER ONE MORE TIME. WE ESTIMATED $256,200 ON OUR ORIGINAL BUDGET. OH, YOU'RE TALKING THE OVERALL GENERAL FUND BUDGET. OVERALL GENERAL FUND, YEAH. SO THAT'S WHERE ALL THOSE SALES TAXES GO, RIGHT? RIGHT. SO WE GOT 267. 
          FOUR IS THE PROJECTED YEAR END, RIGHT? SO THAT'S ROUGHLY $11.2 MILLION DIFFERENCE, $11.25 MILLION. THEN YOU'RE LOOKING AT PROPOSED BUDGET IS $271.3 MILLION. SO THE DIFFERENCE THERE OF ANOTHER $4 MILLION, YOU'RE MAKING UP HOW MUCH OF THAT IN SALES TAX PROJECTIONS? WE'VE GOT ANOTHER SLIDE COMING UP THAT SHOWS KIND OF THE BREAKDOWN. THE BREAKDOWN ON ALL THAT? THAT WE'LL COVER. 
          OKAY. AND THEN I KNOW I ASKED YOU TO SEND US SOME SUMMARIES, AND SO WE'VE GOT SOME OF THOSE PRINTED OFF WHERE YOU'VE GOT ALL THAT STUFF BROKEN OUT. YEAH, THE BREAKDOWN OF THE REVENUE. 
          YES, SIR. SO, WELL, I'LL WAIT THEN. SO WE'LL LET MS. LOLA GET BACK IN IT. 
          THANK YOU. 
          NEXT, WE SHOW GROSS RECEIPTS FOR BUSINESS TAXES. AND JUST TO GIVE YOU A QUICK OVERVIEW, OUR BUSINESS TAXES MAINLY COME FROM OUR UTILITIES, ELECTRIC, GAS, TELEPHONE, CABLE TV, AND OUR CITY-OWNED UTILITIES, WATER AND SEWER, BASED ON PER ACCOUNT CHARGE AND THE DRAINAGE BASED ON 5% OF REVENUES. MOST OF OUR UTILITIES ARE AT A 5% RATE IN TERMS OF THE BUSINESS TAXES COLLECTED. 
          WE ALSO ILLUSTRATE OUR GROSS RECEIPTS FOR BUSINESS TAXES OVER A 10-YEAR PERIOD. WE HAVE BEEN PRETTY MUCH AROUND THE $10.5 MILLION RANGE BETWEEN 2021 THROUGH 2024. AS OF THE END OF 2024-2025, WE HAD $10.8 MILLION FOR ELECTRIC UTILITY. AND THE TOTAL UTILITIES SUMMED UP TO $22 MILLION AS OF THE END OF 2024-2025. UTILITIES HAVE BEEN RELATIVELY STABLE OVER THE PAST COUPLE OF YEARS, AS OUR GRAPH CHART HERE ILLUSTRATES. 
          ALSO, IN TERMS OF OUR RECEIPTS FOR FY 2025-2026, WE ARE PRETTY MUCH AS EXPECTED. 
          AT THIS POINT IN TIME IN THE YEAR, WE SHOULD BE ABOUT 75% OF COLLECTIONS, WE'RE AT 72.5%, WHICH IS RELATIVELY IN LINE WITH WHAT, A LITTLE BIT BELOW WHERE WE SHOULD BE, BUT WE ARE TRACKING IN THE RIGHT DIRECTION TO MEET OUR ANNUAL BUDGET OF $22.3 MILLION FOR OUR BUSINESS TAX RECEIPTS, ACCORDING TO THE DATA WE'RE SEEING HERE. 
          NEXT, WE'RE GOING TO BE TALKING ABOUT OUR HOTEL OCCUPANCY TAX, WHICH IS ALSO ABBREVIATED AS HOT TAXES. WE HAVE PROVIDED A 10-YEAR HISTORY OF OUR HOT TAXES FROM 2015-2016 THROUGH 2024-2025. AS OF THE END OF THE FISCAL YEAR 2024-2025, WE WERE AT $9.9 MILLION IN HOT TAX RECEIPTS. AND WE HAVE ALSO PROVIDED A BREAKDOWN OF HOW THE HOT TAXES ARE DISTRIBUTED BETWEEN THE STATE AND LOCAL AGENCIES. 
          TO GIVE YOU A QUICK OVERVIEW OF OUR CURRENT HOT TAX COLLECTIONS FOR THIS FISCAL YEAR. 
          WE HAVE COLLECTED SO FAR THROUGH THE MONTH OF JUNE $7.7 MILLION IN HOT TAXES, AND WE ARE ON TRACK TO BE AT BUDGET FOR THE END OF THE FISCAL YEAR FOR OUR HOT TAX COLLECTION. 
          NEXT YEAR WE ARE PROPOSING THAT WE'LL COLLECT $10.7 MILLION IN HOT TAXES. FOR THE YEAR, THIS IS A REALISTIC APPROACH TO PROJECTING ACTIVITY WITHIN THE CITY AND SURROUNDING AREAS THAT WOULD UTILIZE HOTELS. 
          NEXT, WE'D LIKE TO DISCUSS OUR UTILITY SALES. 
          [00:20:01]
WE HAVE VARIOUS UTILITIES BROKEN DOWN BY TYPE, SANITATION, WATER SALES, SEWER SALES. AND FOR THIS FISCAL YEAR THROUGH JUNE 2026, FOR SANITATION, WE'RE AT $24.4 MILLION, ABOUT 70% OF THE SANITATION BUDGET FOR THE YEAR. OUR WATER AND SEWER SALES SUM UP TO $66.2 MILLION THROUGH THE END OF JUNE. AND WATER AND SEWER SALES TEND TO BE SEASONAL. WE EXPECT TO HAVE HIGHER SALES LEVELS IN JULY. THROUGH SEPTEMBER, SO WE ARE PROJECTING THAT THESE NUMBERS WILL BE HIGHER BY THE TIME THE YEAR ENDS, EVEN THOUGH RIGHT NOW IT'S AT 61.5 PERCENT. OUR DRAINAGE SALES ARE ALSO AT 71.8 PERCENT, AND THAT NUMBER COLLECTED THROUGH THE MONTH OF JUNE IS AT 7.9 MILLION DOLLARS. 
          WE ALSO ILLUSTRATE OUR ESTIMATES THROUGH THE END OF THE YEAR FOR THE VARIOUS UTILITY ACCOUNTS. SANITATION, WE'RE EXPECTING TO BE AT $36.2 MILLION THROUGH THE END OF THE YEAR. WATER AND SEWER, WE EXPECT TO BE OVER OUR BUDGET, WHICH IS A GOOD THING FOR US THAT WE'RE PROJECTING, $112.3 MILLION. DRAINAGE WE ARE PROJECTING THAT WILL BE SLIGHTLY BELOW THE BUDGETED AMOUNT FOR THE YEAR AT $10.8 MILLION VERSUS THE $11.1 MILLION BUDGET FOR DRAINAGE. 
          NEXT, I'M GOING TO... CAN I, JUST A QUICK QUESTION, IF YOU DON'T MIND, BECAUSE I'M JUST LOOKING, GOING BACK TO HOT TAX. OKAY. 
          SO, I'M JUST LOOKING AT WHAT'S ON THIS SHEET VERSUS WHAT I SEE IN THE BUDGET. AND WHAT I SEE ON THIS SHEET IS, I GUESS WE'RE LOOKING AT $10.7 MILLION WE'LL FINISH THE YEAR AT, AND THEN WE'RE BUDGETING ABOUT $10.7 MILLION NEXT YEAR, CORRECT? YES. BUT WHEN I LOOK AT THE BUDGET, UNLESS THERE'S DIFFERENT LINES, I SEE US FORECASTING $10.2 MILLION AND THEN ACTUALLY BUDGETING DOWN $9.7 MILLION. I THINK JUSTIN CHECKED THAT, AND IT'S NETTING OUT THE REBATES. 
          IN THAT NUMBER. WE WERE GOING TO DOUBLE CHECK THAT BECAUSE USUALLY IT'S SEPARATE LINE ITEMS, BUT WE DO HAVE THE EMBASSY REBATE CURRENTLY AS WELL. 
          SO, BUT GOING BACK AND LOOKING AT, YOU KNOW, THE LAST COUPLE OF YEARS, WE WERE UP 11%, 12%, AND NOW WE'RE BUDGETING DOWN, ACCORDING TO THE BUDGET, 5% ON HOT TAX. YEAH, HE'S GOING TO DOUBLE CHECK. WE MAY NEED TO JUST INCREASE THAT, BUT JUST KNOW, YEAH, IT'S GOING UP, BUT A PORTION OF THAT'S GETTING REBATED OUT. I THINK IT WENT AHEAD AND SUBTRACTED IT. IS THAT RIGHT, JUSTIN? YES. 
          BUT THOSE ARE NOT NEW REBATES, ARE THEY? I MEAN, WE'VE HAD THEM IN PREVIOUS YEARS. AND I THINK IT'S JUST A MATTER OF THE PREVIOUS YEARS WERE SHOWING THE REBATES AS PART OF THE NUMBER, AND WE JUST DIDN'T IN THE CURRENT PROPOSED BUDGET. 
          FOR SOME REASON, IT GOT SEPARATED OUT. 
          SO YOU'D ADD BACK IN THE YOU'D BUMP IT BACK UP TO THE 10.7 TO GET YOUR ACCURATE VARIANCE PERCENTAGE. 
          OKAY. 
          ALL I KNOW IS I'M SEEING NUMBERS HERE THAT ARE BEING PRESENTED, AND I'M SEEING NUMBERS IN THE BUDGET, AND THEY'RE NOT MATCHING UP THERE. SO THE 9.7 IS GOING TO CHANGE? WE'RE GOING TO GO BACK AND LOOK TO SEE IF IT'S PLUGGED IN IN THE RIGHT SPOT. PREVIOUS YEARS AND THE CARRYOVER BETWEEN WORKDAY AND THE BUDGET SOFTWARE MAY HAVE DEDUCTED IT WHEN IT SHOULDN'T HAVE. SO IT SHOULD ACTUALLY PROBABLY BE THE $10.7 MILLION. THAT'S WHAT WE'RE GOING TO DOUBLE CHECK. THAT WAS ONE OF THE ITEMS WE CAUGHT WHEN WE WERE REVIEWING IT AS WELL. 
          AND THEN I GUESS WHEN WE ENTERED THE FORECAST INTO THIS, IT JUST GOES OFF THAT NUMBER. YES, SIR. ALL RIGHT. THANK YOU. OKAY. JUST BECAUSE WE'RE ALL LISTENING, BUT I DON'T KNOW THAT WE'RE HEARING EASY NUMBERS. SO ESTIMATED, BEST ESTIMATED END TO CURRENT YEAR HOT TAX. WHAT DO YOU SAY IT WILL BE? 10.7. 
          10.7, OKAY. AMOUNT IN THE BUDGET FOR 27? 10.7 AS WELL. SO YOU'RE JUST HOLDING IT FLAT? YES, SIR. AND THAT'S YOUR RECOMMENDATION? BASED ON OUR REVIEW OF THE SITUATION, WE DON'T WANT TO BE TOO OPTIMISTIC IN TERMS 
          [00:25:01]
OF OUR PROJECTIONS FOR THE YEAR. WE THINK THAT THERE COULD BE A ONE-TIME INCREASE IN 2025, 2026, THAT WE DON'T NECESSARILY WANT TO FACTOR INTO 2026, 2027. SO WE'RE BEING MORE CONSERVATIVE IN OUR PROJECTIONS FOR THE NEXT BUDGET YEAR. 
          WOULD YOU BE OPEN TO MAYBE FIVE-YEAR LOOKOUT FROM MASSIVE CONSTRUCTION THROUGHOUT THE TEXAS PANHANDLE THAT HAS ALREADY STARTED AND WOULD CONTINUE TO HIT OUR HOT TAX REVENUES? I THINK PART OF THE CHALLENGE WITH THAT IS IF THEY STAY LONGER THAN 30 DAYS, WE DON'T COLLECT HOT TAX. SO IF THEIR LONG-TERM STAYS IN THOSE HOTELS AND DON'T LEAVE, WE WOULDN'T BENEFIT FROM IT. A BALANCE. OH, OKAY. 
          SO THAT PART YOU KIND OF EXCLUDE IT ALL TOGETHER? WELL, I WOULD JUST SAY YOU WOULDN'T WANT TO FACTOR IN ALL THE CONSTRUCTION. IF THEY'RE LONG-TERM EMPLOYEES AND STAYING, I DON'T KNOW HOW WE'D ESTIMATE THAT, BUT JUST KNOW IF THEY'RE IN AN AIRBNB BEYOND 30 DAYS. 
          OKAY. DID YOU GUYS HAPPEN TO REACH OUT TO ANY OF THE HOTELIERS TO SEE WHAT THEIR... PROJECTIONS WERE NEXT YEAR OR WE'RE JUST HOLDING IT FLAT TO BE CONSERVATIVE? WE'RE HOLDING IT FLAT FROM NOW ON TO BE CONSERVATIVE SO THAT'S OUR APPROACH FOR THIS YEAR. OKAY THANK YOU. HOW MANY I MEAN HAVE WE LOOKED AT I'M GUESSING WE HAVE BUT HOW MANY HOTEL STARTS DO WE HAVE? I MEAN I KNOW I MEAN I'M THINKING OFFHAND WE'VE GOT SEVERAL. WE HAVE AT LEAST ONE UNDER CONSTRUCTION ONE ALMOST COMPLETE. WE'VE GOT TWO DOWNTOWN THAT'LL BE UNDER CONSTRUCTION SOON. SO UNLESS THOSE ARE ALL 30-DAY-PLUS STAYS, WE SHOULD SEE IT INCREASE. I MEAN, I FEEL LIKE THESE GUYS WOULDN'T BE ABLE TO TELL US. ONCE THEY OPEN, YEAH. 
          DO WE SEE THOSE OPENING IN 2027? AT LEAST ONE OF THEM OUT TOWARDS SONCY THAT I KNOW OF. OKAY, OKAY. THANK YOU. 
          SO NEXT I'LL TAKE US THROUGH THE TEXAS PROPERTY TAX BASICS AS A REFRESHER. A PROPERTY TAX IS A REVENUE-BASED TAX ON THE VALUE OF A PROPERTY. THE VALUE OF PROPERTIES ARE DETERMINED BY THE POTTER-RANDALL APPRAISAL DISTRICT, ALSO ABBREVIATED AS PRAD. AND PRAD IS AN OUTSIDE AGENCY THAT ACTS INDEPENDENTLY OF THE CITY. THE CITY OF AMARILLO SPANS TWO COUNTIES, SO PRAT DETERMINES PROPERTY VALUES IN BOTH COUNTIES, BUT NOT THE TAX RATE. 
          HOMESTEAD EXEMPTIONS ONLY APPLY TO THE SCHOOL DISTRICT PORTION OF THE PROPERTY TAX BILL. THE CURRENT EXEMPTION IS $100,000. 
          HOMESTEAD PROPERTIES FALL UNDER THE STATE OF TEXAS 10% APPRAISED TAX VALUE LIMIT. 
          THIS MEANS THAT THE APPRAISED TAX VALUE CAN ONLY INCREASE BY 10% EACH YEAR. 
          ALSO, GOING FURTHER, THE CITY OF AMARILLO OFFERS A COUPLE OF OPTIONS TO PROVIDE A TAX BREAK TO OUR CITIZENS. FOR EXAMPLE, WE OFFER THE $8,600 SENIOR DISABILITY EXEMPTION, WHICH IS AVAILABLE TO CITIZENS OVER 65 YEARS OLD OR THOSE THAT ARE DISABLED. A CITIZEN CAN ONLY USE ONE OF THESE EXEMPTIONS. 
          HOW THE EXEMPTIONS WORK IS THAT THE OVER 65 SLASH DISABILITY TAX FREEZE HOLDS THE TOTAL TAX DOLLAR AMOUNT ONCE A CITIZEN TURNS 65 OR THEY HAVE A QUALIFIED DISABILITY. 
          IF YOU'RE A 65 YEAR OLD CITIZEN OR YOU HAVE A QUALIFIED DISABILITY, YOU CAN APPLY FOR THIS EXEMPTION AND YOUR TOTAL TAX AMOUNT WILL STAY THE SAME. 
          OR MAY EVEN DECREASE DEPENDING ON PROPERTY VALUES AND THE ADOPTED TAX RATE. AND THE CITIZEN WILL NEVER PAY MORE THAN THE TOTAL FROZEN TAX DOLLAR AMOUNT UNLESS AN IMPROVEMENT IS ADDED TO THE PROPERTY. AND OUR CITIZENS ARE WELCOME TO APPLY FOR THIS BREAK WITH PRAD AT ANY TIME DURING THE YEAR. 
          NEXT, I'M GOING TO WALK US THROUGH THE TRUTH IN TAXATION. PORTION OF THE TEXAS PROPERTY TAX LAWS. 
          PROPERTY OWNERS HAVE THE RIGHT TO KNOW ABOUT INCREASES IN THEIR PROPERTY'S APPRAISED VALUES AND TO BE NOTIFIED OF THE ESTIMATED TAXES THAT COULD RESULT FROM THE NEW VALUE. AND THEN A TAXING UNIT MUST PUBLISH 
          [00:30:01]
SPECIAL NOTICES AND HOLD ONE PUBLIC HEARING BEFORE ADOPTING A TAX RATE. 
          ALSO, TAXING UNITS MUST PUBLISH THE NO NEW REVENUE AND VOTER APPROVAL TAX RATES BEFORE ADOPTING AN ACTUAL TAX RATE. 
          IF A TAXING UNIT ADOPTS A RATE THAT EXCEEDS THE VOTER APPROVAL RATE, A MANDATORY ELECTION MUST BE HELD IN NOVEMBER. 
          AGAIN, WE HAVE SOME OVERVIEW INFORMATION OF THE TEXAS PROPERTY TAX REFORM, WHICH IS KNOWN AS SB2. 
          SO TO GIVE YOU A QUICK HISTORY OF THAT, IT BECAME EFFECTIVE IN JANUARY 2020, AND IT PRETTY MUCH ROLLS BACK, RENAMES THE ROLLBACK TAX TO THE VOTER APPROVAL TAX RATE. 
          AND THE TAX RATE WENT DOWN FROM 8% TO 3.5%, AND THERE ARE SOME PROVISIONS AROUND CARRYING FORWARD OF ANY UNUSED INCREMENT BETWEEN THE ADOPTED M&O AND THE VOTER APPROVAL M&O FOR UP TO THREE YEARS. THEN WE HAVE THE ELECTION PROVISION AND THE FACT THAT THE DEBT SERVICE TAX RATE, WHICH IS THE INS RATE, IS NOT AFFECTED BY THE PROPERTY TAX LEVY. 
          ALSO, SB2 PROHIBITS THE ADOPTION OF A BUDGET OR TAKING ANY OTHER ACTION THAT HAS THE EFFECT OF DECREASING THE TOTAL COMPENSATION TO WHICH A FIRST RESPONDER WAS ENTITLED TO IN THE PRECEDING FISCAL YEAR AND THERE ARE CHANGES PERTAINING TO APPRAISALS COLLECTION RATE SETTING ETC. FOR PROPERTY TAXES NEXT WE ILLUSTRATE THE ELEMENTS OF THE PROPERTY TAX RATES WE HAVE THE OPERATIONS AND MAINTENANCE PORTION WHICH IS ABBREVIATED AS O&M, AND THIS FUNDS ONGOING GENERAL FUND OPERATIONS. WE ALSO HAVE THE OTHER COMPONENT AS THE INTEREST AND SINKING PART OF THE TAX RATE, WHICH IS ABBREVIATED AS INS, AND THE SERVICES ARE DEBT. 
          CAN I JUST STOP THERE JUST FOR A SECOND, BECAUSE I THINK THIS IS AN IMPORTANT PAGE TO LOOK AT. THAT I THINK SOMETIMES IS CONFUSING TO TAXPAYERS. IT COULD BE CONFUSING TO WHAT WE'RE TRYING TO DO. 
          BUT AS I UNDERSTAND IT, WHEN WE'RE CHARGING PROPERTY TAXES, THERE'S TWO BUCKETS WE'RE FILLING OUT OF THAT. 
          YES. ONE IS TO PAY FOR THE DAY-TO-DAY OPERATIONS OF THE CITY. YES. AND THAT'S CALLED THE M&O OR O&M, MAINTENANCE AND OPERATIONS. 
          YES. AND THAT'S WHERE THE STATE HAS COME IN AND SAID, AND AS I RECALL, THEY'VE GOT A CONVOLUTED 10-PAGE FORM THAT WE HAVE TO FILL OUT, BUT IT BASICALLY SAYS OUR RATE CAN GO UP NO MORE THAN 3.5% A YEAR, OR IS IT THE AMOUNT OF MONEY THAT WE CAN RECEIVE CAN GO UP NO MORE THAN 3.5% A YEAR? THE RATES. OKAY. AND THEN SO LIKE IN THIS YEAR ON THE MAINTENANCE AND OPERATION SIDE, I GUESS WHEN WE CAME, AND I KNOW WE'RE GOING TO GET THIS IN A MINUTE, OUR PROPERTY TAX REVENUE IS GOING UP VERY LITTLE. 
          IT'S LIKE $600,000 OR $700,000 THAT'S GOING UP. BUT THAT'S BECAUSE I GUESS THAT'S JUST WHAT THE WORKSHEET. TOLD US THE MAXIMUM WE COULD RAISE IT WAS THAT AMOUNT. YES. BUT ON THE INTEREST AND SINKING FUND SIDE, THERE'S NO LIMIT TO HOW MUCH WE COULD RAISE THAT. IT'S TIED INTO HOW MUCH DEBT WE ISSUE OVER WHATEVER YEAR. I THINK THE LIMIT'S LIKE IT WAS $1.50, $1.80, SOMETHING WAY ABOVE WHERE WE WERE. WE HAVE OUR OWN LIMIT BY CHARTER COMPARED TO STATE LAW. SIX X BELOW THE LIMIT ON THAT. 
          YOU'RE CORRECT. RIGHT. BUT THERE'S NO CAP. AND SO WHEN WE'RE LOOKING AT BUT WHEN WE LOOK AT RAISING TAXES, MORE THAN JUST THE O&M FACTORS INTO THIS, IT'S BOTH SIDES OF IT, BOTH OF WHICH AND ARE DETERMINED BY I MEAN, WE'RE LIMITED BY THE STATE GOVERNMENT, BUT WE'RE NOT LIMITED ON HOW MUCH DEBT THAT WE ISSUE AS LONG AS WE'RE AND I GUESS WE'RE LIKE THAT. BUT I THINK, AGAIN, THAT INS SIDE IS WHICH I THINK RIGHT NOW ABOUT 22% OF OUR PROPERTY TAX RATE IS GOING TOWARDS INTEREST AND SINKING FUND AND DEBT. 
          CORRECT. YES, THE INS DOESN'T HAVE THE SAME GROWTH RATE CAP THAT THE O&M SIDE HAS, CORRECT? YEAH. AND I MAY BE WRONG, BUT WHEN I WENT BACK AND LOOKED AT THE BUDGETS AND I LOOKED BACK TO 22-23, DURING THAT TIME PERIOD, THE AMOUNT OF MONEY THAT I 
          [00:35:02]
THINK HAS INCREASED ABOUT 16%. SOMETHING LIKE THAT. 
          BUT ON THE OTHER SIDE, ON THE INTEREST AND SINKING FUND, THAT HAS INCREASED ABOUT 75 PERCENT. SO OUR INTEREST AND SINKING FUND SIDE HAS, I THINK WE'VE GONE FROM 11.7 MILLION IN 2023, AND NOW I THINK WE'RE AT ABOUT 20.3 MILLION, SO ABOUT 8.7 MILLION MORE IN THE LAST, BUT THIS WILL BE THE FIFTH YEAR BUDGET. SO I JUST WANT TO KIND OF POINT OUT THAT ON THAT SIDE, YOU KNOW, WE'VE INCREASED TAXES A PRETTY GOOD BIT BASED ON WHAT WE'RE LOOKING ON THAT INTEREST AND SINKING FUND. AND WE KNOW WHAT IT WAS FOR. I MEAN, WE'RE LOOKING AT ROADS AND WE'RE LOOKING FOR FIRE DEPARTMENT AND THOSE TYPES OF THINGS. BUT I JUST WANT TO KIND OF POINT OUT THAT WE'RE KIND OF CAPPED ON THE OPERATIONS AND MAINTENANCE, BUT WE'RE NOT CAPPED ON INS. 
          CORRECT. AND ONE OF THE THINGS THAT WE SEE COMING FOR US, AND WE DOUBLE-CHECKED WITH OUR FINANCIAL ADVISORS ON THIS, IS IN TWO YEARS, RIGHT? SO NOT THIS UPCOMING FISCAL YEAR, BUT THE ONE AFTER THAT, WE'RE GOING TO HAVE A SIGNIFICANT AMOUNT OF DEBT ROLLING OFF. 
          I THINK CITY HALL IS ONE OF THOSE. IS THAT THE MAIN ONE? THAT'S THE MAIN ONE. YEAH, SO WE'RE GOING TO SEE A DROP IN THE INS RATE AT THAT POINT. AND SO IF THE COUNCIL WERE TO AUTHORIZE ANY DEBT ISSUANCES IN THIS UPCOMING FISCAL YEAR, THOSE RATES WILL BE APPLIED TO THE FOLLOWING FISCAL YEAR WHEN THOSE ROLL OFF. SO YOU'LL SEE A DROP IN THE OVERALL RATE. IT MAY BE AT BEST A RELATIVE. 
          STAYING FLAT ALMOST, BUT WE'RE GOING TO SEE THAT HAPPENING. SO THAT'S THE 27-28 FISCAL YEAR, CORRECT? YES, YES. THAT WE'LL SEE. THERE WILL BE A SIGNIFICANT AMOUNT OF DEBT. SO WE'LL BE MAKING FINAL PAYMENTS IN THIS UPCOMING FISCAL YEAR, AND THEN THE FOLLOWING IS WHEN IT ROLLS UP. AND I THINK THAT WAS ABOUT $4 MILLION A YEAR, I THINK. I MEAN, RIGHT NOW, IF THIS BUDGET IS APPROVED, WE'RE PAYING ABOUT $20.3 MILLION A YEAR OF DEBT. 
          BECAUSE WE HAVE ONE ROLLING OFF, IT'S $2.5 MILLION. 
          AND I'D LIKE TO REMIND THE COUNCIL AND ANYONE LISTENING TODAY THAT YOUR PROPOSED INS TAX RATE IS BASED OFF OF DEBT ALREADY ISSUED. 
          CORRECT. AND SO IT'S NOT BASED ON DEBT THAT YOU WILL ISSUE NEXT YEAR. THOSE TAX RATES THAT GO TO PAY THAT DEBT WILL BE APPLIED TO THE FOLLOWING FISCAL YEAR. 
          YOU ALWAYS SET THE TAX RATE IN ARREARS TO THE DEBT YOU ISSUE. 
          THANK YOU. YEAH, CLARITY, BECAUSE I DIDN'T FOLLOW THE 75%, AND I WANT TO MAKE SURE THAT I'M HEARING YOU RIGHT. 
          ARE YOU GOING BACK 10 YEARS, MAYBE LIKE 2016? AND FIRST OF ALL, THIS IS ME, SO I ADMIT I MAY BE WRONG, WHICH I'M NOT SAYING, BUT I WENT BACK TO 2023. 
          YEAH, WE'LL HAVE A GOOD SLIDE ON IT HERE IN ABOUT SIX SLIDES THAT SHOWS BACK TO 2016, 2017, OF THE BREAKDOWN BETWEEN INS AND O&M CONTINUING. 
          IMPLEMENTING AND SEE THE DON'T REMEMBER FOR SURE BUT I WANT TO SAY THE INS SIDE WAS AROUND SEVEN CENTS BACK IN 22-23 AND NOW IT'S UP TO TEN CENTS. YEAH, I THINK IT WAS ABOUT SEVEN POINT FIVE. 
          YEAH NOW THERE THAT'S THE RATE THAT'S THE RATE. YES. I MEAN IF YOU INCREASE NOT PENNY WHAT WHAT ARE YOU GETTING TO IN YOUR ARE YOU SAYING LIKE WE'RE MAXIMIZING THE AMOUNT OF BORROW? I'M JUST STATING KIND OF WHERE WE ARE AS FAR AS HOW MUCH WE'VE INCREASED, YOU KNOW, TO THE TAXPAYERS HOW MUCH MORE THEY'RE PAYING BECAUSE OF THIS. THE DEBT THAT WE'VE ISSUED. BUT THE RATE, LIKE THE PENNIES, THOSE ARE ACTUAL PENNIES, RIGHT? SO THEY'RE SEVEN AND A HALF CENTS IN 22? IS THAT WHAT YOU LOOKED AT? BUT ALSO THE RATE IS APPLYING TO THE VALUE, SO THE VALUE IS GOING TO CHANGE. SO THAT'S WHY YOU MAY NOT GET A, I THINK THE RATE HAS GONE UP ABOUT 34 PERCENT DURING THAT SAME TIME. IF WE'VE GONE UP 7.5 TO 10 BUT THAT DOESN'T, BUT THE MONEY IS MORE BECAUSE THE VALUE HAS GONE UP IF I'M NOT MISTAKEN SO WHEN WE SAW THE VALUES OF HOMES GO UP IN THE APPRAISAL, THAT VALUE, IT'S JUST LIKE THE FIRST TWO YEARS I WAS ON COUNCIL, THE TAX RATE LOWERED. BUT WE ACTUALLY TOOK IN MORE MONEY, EVEN THOUGH WE LOWERED THE RATE BECAUSE THE HOME VALUE WENT UP AND I THINK THE SAME IS APPLYING TO THE DEBT SIDE ON INS WE SAW INCREASE IN HOME VALUES SO THE RATE IS GONE UP ABOUT 34% OR WHATEVER 7.5 TO WHATEVER IT IS BUT THE AMOUNT THAT WE COLLECTED IS ACTUALLY GONE UP MORE BECAUSE HOME VALUES INCREASE TO BE ABLE TO PAY OFF THE DEBT. BUT I MAYBE WRONG BUT THAT'S JUST KINDA WHAT I'M LOOKING AT. 
          YEAH, I WOULD LOVE TO KNOW THE PERCENTAGE ON LIKE WHERE YOU WERE COMING UP WITH THE 75% BECAUSE I KNOW FOR US WE'RE LOOKING AT, YOU KNOW, LIKE DO WE INCREASE IT A PENNY AND HOW MUCH DOES THAT HIT A 
          [00:40:02]
HOUSEHOLD? AND THEN THE FLUX IN THE BUDGET HAS BEEN, WE'VE BEEN ON A GOOD STRATEGIC PLAN OVER THE LAST REALLY FOUR OR FIVE YEARS NOW. THE THINGS THAT DON'T HAVE A VALUE AFTER FIVE, SEVEN YEARS FROM NOW LETS PUT THOSE ON A LEASE PROGRAM, LET'S PUT THEM ON, A DEBT ISSUANCE LETS PAY FOR FLEET, LET'S BUY THOSE FIRE ENGINES RATHER THAN PAYING CASH AND LOOKING AT, REALLY I THINK WHAT WE SAW PREVIOUSLY WAS DO SERVICES IN ORDER TO STOCKPILE CASH SO WE COULD GO BUY A PIECE OF EQUIPMENT. NOW, YOU KNOW, I THINK THAT'S HOW WE'RE AFFORDING SOME OF OUR PUBLIC SAFETY INVESTMENT, YOU KNOW, WITHOUT RAISING TAXES, YOU KNOW, MORE THAN A SMALL INCREMENT. I KNOW YOU GUYS WILL HAVE SOME SLIDES WE'LL GET INTO THAT. I JUST AM TRYING TO BE MINDFUL. 
          WE USE WORDS THAT ARE KEY WORDS HERE LIKE RAISE TAXES 75%, THINGS LIKE THAT. AND SO PEOPLE ARE JUST CLUING INTO THOSE. 
          THAT'S NOT WHAT THE END OF THE PROPOSAL LOOKS LIKE. 
          WELL, THAT'S CORRECT, AND THAT'S WHY I WANTED TO POINT IT OUT. THERE'S TWO BUCKETS HERE ON THE MAINTENANCE AND OPERATIONS SIDE, I THINK, DURING THAT SAME TIME PERIOD. 
          GONE UP ABOUT 16 PERCENT THAT RELATES OUT TO ABOUT THREE AND THE RATES TAPPED OUT AT IT BUT IT'S IT'S WHAT IT IS WHICH IS AND THAT'S THE MAJORITY OF OUR PROPERTY TAX BUDGET ABOUT 75 PERCENT OF OUR PROPERTY TAX BUDGET BUT IT'S THE INS SIDE THAT'S THE OTHER SIDE OF IT SO NO IT'S NOT THAT OUR I MEAN YOU COULD GO BACK AND LOOK AND SEE HOW MUCH THE TAXES ARE INCREASING OVERALL AND IT'S NOT THAT AMOUNT BUT I'M JUST SAYING THAT PART OF IT IS GOING UP BECAUSE OF DEBT THAT GET ISSUED TO PAY FOR THINGS I APPRECIATE THE ADDITIONAL EXPLANATION THANK YOU. SO WE'RE GOING TO BE GOING OVER THE NO NEW REVENUE TAX RATE. SO THE NO NEW REVENUE TAX RATE IS A TAX RATE THAT WOULD PRODUCE THE SAME AMOUNT OF TAXES IF APPLIED TO THE SAME PROPERTIES TAXED IN BOTH YEARS. THIS IS ESSENTIALLY THE TAX RATE THE CITY WOULD PASS TO COLLECT THE SAME TAX REVENUE AS LAST YEAR, WHICH IS FY 2025-2026. USING THIS YEAR'S FY2026-2027 APPRAISED VALUES. 
          FOR FY2026-2027, THE NO NEW REVENUE TAX RATE IS $0.42170 PER $100 VALUATION OR $0.02558 UNDER THE PROPOSED $0.44728 TAX RATE. 
          AND THIS JUST ILLUSTRATES THE BALANCE BETWEEN THE APPRAISED PROPERTY VALUE AND THE NO NEW REVENUE TAX RATE. 
          NEXT, WE'LL DISCUSS THE VOTER APPROVAL TAX RATE. 
          SO THE VOTER APPROVAL TAX RATE PROVIDES A TAXING UNIT WITH THE SAME AMOUNT OF TAX REVENUE IT SPENT THE PREVIOUS YEAR FOR DAY-TO-DAY OPERATIONS. 
          PLUS AN EXTRA 3.5 PERCENT INCREASE WHILE THE O&M PART OF THE CALCULATION IS CAPPED AT 3.5%, PLUS ANY UNUSED INCREMENT FROM THE PAST THREE YEARS, LIKE WE DISCUSSED EARLIER, THE DEBT SERVICE PORTION OF THE OVERALL RATE MAY BE AS HIGH AS NECESSARY TO COVER DEBT EXPENSE IN THE COMING YEAR. IF THE CITY APPROVES A TAX RATE OVER THE VOTER APPROVAL TAX RATE, A MANDATORY ELECTION IS REQUIRED IN NOVEMBER. 
          FOR FY 2026-27, THE VOTER APPROVAL TAX RATE IS $0.44728 PER $100 VALUATION OR $0 ABOVE THE PROPOSED $0.44728 TAX RATE. ESSENTIALLY, WE'RE SAYING THE VOTER APPROVAL TAX RATE IS WHAT WE'RE PROPOSING FOR FY 2026-2027. NEXT, WE'RE GOING TO BE REVIEWING THE TRUTH. 
          IN TAXATION LAWS. 
          IF THE PROPOSED TAX RATE EXCEEDS THE NO NEW REVENUE TAX RATE BUT IS BELOW THE VOTER APPROVAL TAX RATE, ENTITIES MUST PROVIDE NOTICE TO PROPERTY OWNERS AND HOLD ONE PUBLIC HEARING. AND THE NOTICE MUST SPECIFY THE PROPOSED TAX RATE, THE NO NEW REVENUE TAX RATE, THE VOTER APPROVAL TAX RATE, DATE AND TIME OF PUBLIC HEARING, AND THE TAX IS IMPOSED ON AN AVERAGE RESIDENT'S HOMESTEAD AND COUNCIL MAY ADOPT THE TAX RATE AT THE PUBLIC HEARING OR IF THEY DON'T THEY'LL NEED TO ANNOUNCE THE DATE AND TIME 
          [00:45:01]
OF THE VOTE ON THE TAX RATE HERE WE HAVE PROVIDED A SAMPLE TAX BILL FOR A CITY OF AMARILLO RESIDENT BASED IN RANDALL COUNTY. WE SHOW THE PROPOSED TAX RATE FOR THE CITY OF AMARILLO FOR THE FY 2026-27 YEAR, BUT THE OTHER TAX RATES ARE FROM 2025 SINCE THOSE ARE THE TAX RATES THAT ARE PUBLIC. SO THE CITY OF AMARILLO'S TAXES COME AS 23% OF AN AVERAGE TAX BILL, WHILE WE HAVE THE OTHER JURISDICTIONS, THE INDEPENDENT SCHOOL DISTRICT AT 45%, AMARILLO COLLEGE. 
          EXCUSE ME. RANDALL COUNTY AND THE HIGH PLAINS WARD ARE FALLING THROUGH IN THE TAX BILL. 
          WE HAVE ALSO SHOWN HERE THE SAMPLE TAX BILL ALLOCATION FOR A CITY OF AMARILLO RESIDENT BASED IN PORTER COUNTY. 
          SIMILARLY, WE SHOW OUR TAX RATE PROPOSED AT 0.4728 FOR THE FY26-27 FISCAL YEAR. 
          JURISDICTIONS INCLUDING THE INFERNO SCHOOL DISTRICT, PORTER COUNTY, PANHANDLE, GROUNDWATER AND AMARILLO COLLEGE. 
          HERE WE HAVE PROVIDED A TAX RATE HISTORY FOR A HUNDRED DOLLAR VALUATION FROM 2016 THROUGH 2026 AND WE STARTED OFF WITH 0.35 ALL THE WAY TO 0.447 TO 728. AS YOU'RE PROPOSING IN 2026-2027. THIS SHOWS THE CITY OF AMARILLO PROPERTY TAX RATES OVER A 10-YEAR PERIOD WITH THE VARIOUS COMPONENTS OF OUR TAXES. SO WE CAN SEE THE TREND THROUGH 10 YEARS. 
          THAT'S THE SLIDE LES IS SPEAKING ON WHERE YOU START SEEING THE BREAKDOWN BETWEEN THE RATE. 
          SO THIS SLIDE PROVIDES A BREAKDOWN OF THE CITY OF MURILLO PROPERTY TAXES WITH THE COMPONENTS AS A PERCENTAGE. SO WE CAN SEE THAT THROUGH FROM 2016 ALL THE WAY THROUGH 2026, 2027. HERE WE SHOW THE PROPOSED PROPERTY TAX RATE FROM 2025, 2026. 
          THROUGH OUR PROPOSED TAX RATE FOR 2026-2027, APPROVED TAX RATE FOR 2025-2026. SO THE COMPONENTS ARE ILLUSTRATED HERE, THE O&M RATES AND THE INS RATES THROUGH THE YEARS. 
          AND WE HAVE ESTIMATED THE INCREASE IN TAX COLLECTIONS OVER TWO YEARS BY ADOPTING THE RATES THAT WE HAVE PROPOSED FOR FY26, 2027. WE ALSO SHOW POTENTIAL BUDGET ENHANCEMENTS THAT WOULD APPLY TO THE RATES WE HAVE PRESENTED HERE. THE M&O RATES WILL BE USED FOR PERSONNEL ADJUSTMENTS, INCLUDING RAISES. COLA AND THE DEBT RATE TO BE USED FOR NEW DEBT ISSUANCES THAT WE ARE PROPOSING FOR 2026-2027. WE ALSO SHOW THE PER MONTH INCREASE FOR A $100,000 HOME IN OUR CHART UP THERE. 
          HERE WE PRESENT THE CERTIFIED VALUES. OVER THE TWO YEARS 2025 AND 2026. AS THE CHART SHOWS THE CERTIFIED VALUES HAVE INCREASED. WE'VE ALSO INCREASED THE TIF CAPITAL VALUE OVER THE TWO YEARS AS WELL AS THE FREEZE ADJUSTMENTS AND WE HAVE INCREASES SHOWING UP IN TOTAL VALUE OF OUR NEW PROPERTIES AS WELL AS THE AVERAGE RESIDENTS FOR AVERAGE RESIDENCE TAXABLE VALUE FOR A HOUSE IN THE CITY OF AMARILLO GOING UP YEAR OVER YEAR. 
          YEAH, CAN WE CAMP HERE FOR A MINUTE? I KNOW YOU COVERED FIVE OR SIX PAGES, SO CAN WE GO BACK? AND THEN LET'S COMB THROUGH THIS A COUPLE TIMES BECAUSE THIS IS VERY COMPLICATED, CONVOLUTED, WOULD BE A GREAT WAY 
          [00:50:01]
TO SAY IT. THANK YOU, STATE OF TEXAS FOR THE MATH PROBLEM AND THE DIFFICULTIES IN TRYING TO FIGURE OUT NOT ONLY WHAT WE'RE GOING TO CHARGE, BUT HOW AND WHY. 
          ALSO, THANK YOU FOR ALLOWING IT TO BE THE COMMUNICATION PIECE THAT HAS TO EXPLAIN THIS TO OUR CUSTOMERS AND TAXPAYERS. 
          WELL SAID. I GOT A RESOUNDING AMEN FROM MY STAFF. ONLY TIME THEY'VE AGREED WITH ME THIS YEAR. 
          ALL RIGHT. LET'S GO BACK. 
          LES, WE GOT... YOU CAME ON IN 23, RIGHT? I THINK YOU GOT ELECTED IN 23. YEAH, SO 23-24 WOULD BE THE FIRST... FIRST BUDGET. 
          SO, INTEREST AND SINKING, 7 CENTS. 7.7 CENTS, RIGHT? OF THAT, AND THEN, YOU KNOW, IF YOU GO THROUGH CURRENT YEAR, WE'RE AT 9.9 CENTS. SO ROUGHLY TWO PENNIES THAT WE'VE INCREASED THE INTEREST AND SINKING TOGETHER. 
          AND SO LIKE ON THE 75% INCREASE, I'M STILL LOST. AND ARE YOU SAYING IT'S BECAUSE OF THE AMOUNT OF MONEY WE'RE ABLE TO LEVERAGE ON THAT TWO PENNIES? NO. WHEN YOU LOOK AT SO IF WE LOOK AT 22-23, WHAT DID WE HAVE BUDGETED THAT YEAR FOR OUTSTANDING DEBT? SO YOU'RE SAYING THE AMOUNT OF DEBT THAT WE HAVE. YEAH, BECAUSE THE RATE REALLY DOESN'T, I MEAN, AGAIN, WHEN YOU GO BACK AND LOOK AT THE PROPERTY TAX, I MEAN, OUR RATE WENT DOWN, OKAY, THE FIRST TWO YEARS WE WERE ON HERE, BUT WE WERE TAKING IN MORE MONEY. THE RATE IS RELATED TO THAT. SO THE RATE OF WHATEVER THE RATE IS PART OF HOW YOU FIGURE IT OUT, BUT IT'S NOT THE ONLY PART. 
          THE OTHER PART IS WHAT ARE THE VALUES OF THE PROPERTY BECAUSE YOU'VE ISSUED THAT AMOUNT OF DEBT, AND IT TAKES THE RATE. 
          TIMES THE VALUE TO THE TERM OF THAT. I FOLLOW. SO THE THING ABOUT WHAT YOU'RE SAYING THAT I BELIEVE IS A REALLY GOOD POINT AND A GOOD THING IS WE, AS A COUNCIL OVER THE LAST FOUR YEARS, HAVE LEVERAGED AND MAXIMIZED OUR BORROWING POWER WITHIN OUR DEBT SERVICE. AND SO, LIKE, YOU'VE GOT SO MANY MILLIONS THAT YOU'RE USING TO SERVICE DEBT. WELL, STAFF REFUNDED OR REFINANCED QUITE A BIT OF THAT ON SOME PREVIOUS YEARS. 
          WE'VE GOT STUFF ROLLING OFF AND ROLLING ON. SO THAT'S PRETTY COMPLICATED. 
          IN THE WAY THAT THAT WORKS. 
          BUT THEN IN THE DEBT INCREASE, I DEFINITELY AGREE WITH YOU. 
          LIKE BACK IN 2015, YOU KNOW, THEY WERE JUST PAYING CASH FOR MOST OF THEIR NEEDS AND HAD A REALLY SMALL AMOUNT. 
          AND WE'VE INCREASED THAT THROUGHOUT THE 10, 11 YEARS. 
          AND SO THE PERCENTAGE NOT AS IMPORTANT, I THINK, OF WHAT YOU'RE POINTING TO AS. JUST THE DIFFERENTIATION OF HOW YOU'RE SPLITTING THOSE TAXES APART, THAT'S THE AMOUNT. IF WE BORROW THE MONEY, WE PASS THE CO. 
          THAT'S WHY YOUR VOTE MATTERS ON, LIKE, WHO YOU PUT UP HERE BECAUSE THAT IS WHAT WE CAN DO. 
          I MEAN, WE CAN BORROW THE MONEY AND IT GOES ON THE INTEREST AND SINKING SIDE. WHERE I'M LOST IS IN, IF YOU GO TO THE NEXT COUPLE PAGES, INCREASE IN ESTIMATED TAX COLLECTIONS, 911,000. WE HAVE NEW PROPERTY THAT'S COME ON. IS THAT THE AMOUNT OF INCREASE THAT WE'RE BUDGETING? HOW MUCH MONEY ARE WE BRINGING IN AS A REVENUE IN JUST NEW PROPERTY? IS THAT WHAT THAT NUMBER IS, MS. LOLA? THAT'S IN TOTAL. 
          FOR THE O&M. SO, IT IS, AND I'M GOING TO SUMMARIZE THIS AND I KNOW IT'S NOT CORRECT, BUT LET ME SEE IF I'M SAYING IT. 911,000 IS WHAT WE THE CITY SHOULD EXPECT IN COMING IN AN ADDITIONAL REVENUES TOTAL WITH YOUR PROPOSED 44 CENT TAX RATE, 44.7. ON THE O&M SIDE. 
          ON THE O&M SIDE. 
          SO HOW DOES THAT WORK IN, YOU KNOW IF THAT IS A 3.5% INCREASE IN RATE RIGHT, THEN LIKE WHAT IS THE AMOUNT OF MONIES THAT COME IN PER PENNY? BECAUSE THEY USED TO BE FOR THE TOTAL PROPERTY VALUE THAT WE HAD EVERY PENNY, WAS ROUGHLY A MILLION 2 AND THEN IT GREW TO LIKE A MILLION 5'S SO IF WE INCREASE OUR TAX RATE FROM 44 CENTS TO 45 CENTS, WE WOULD REVENUE A MILLION. 
          AND A HALF DOLLARS. SO, DID WE HAVE, IS THERE A FACTOR IN THIS CALCULATION WHERE WE'RE PULLING FORWARD FROM THE PREVIOUS YEAR WHERE IT'S NOT THE 3.5%? BECAUSE I'M LOST IN HOW WE'RE REVENUEING AN ADDITIONAL $900K. AND I KNOW WHERE LES HAD SAID EARLIER $700K, I SAW THAT AS WELL IN MY BUDGET BOOK. THERE'S ONLY AROUND $700,000 CHANGE FROM 26 TO 27. CAN YOU TAKE US 
          [00:55:02]
THROUGH THAT MATH PROBLEM? SURE, SO THE $700,000 EXCLUDES THE TIERS CAPTURED VALUE CHANGE YEAR OVER YEAR. THE $911,000 INCLUDES THAT. SO THE $700,000 NETS THE CHANGE IN CAPTURED VALUE FOR OUR TIERS THAT THE CITY PAYS INTO THE TIERS PROGRAM. 
          OKAY, SO TIERS 1, 2, AND 3. 
          THEY'RE MAINTAINING SOME OF THAT GROWTH WITHIN THERE. 
          SO WE NEVER LOSE ANY CAPTURED VALUE, RIGHT? YOU'RE NOT DEDUCTING ANY OF THAT BECAUSE IT'S ONLY INCREASED VALUE IN THOSE TIERS. SO IT'S ACTUALLY THE PARTICIPATION THAT THE CITY PAYS INTO THE TIERS PROGRAM THAT'S CHANGING FROM YEAR OVER YEAR. NETTED GIVES US A $700,000 INCREASE IN REVENUE. 
          I'M LOST ON THE WORD PARTICIPATION. SO LIKE WE DON'T PAY INTO THE TIERS. THE TIERS IS SET UP. IT FUNCTIONS. THERE'S A COLLECTION. RIGHT. NEW PROPERTY THAT COMES INTO THE TIERS. 
          THEY CAPTURE THAT NEW VALUE AND THAT TAX RATE. YOU'RE SAYING THERE'S A DEDUCT SOMEWHERE IN YOUR PROCESS? FOR PARTICIPATION, WE HAVE A CONTRACT REVENUE ACCOUNT THAT DEDUCTS FROM OUR TAXES FOR THE VALUE THAT WE SHOULD BE PAYING INTO THE TIERS. 
          I THINK FOR COUNCIL AND FOR THE PUBLIC, IT'D BE GREAT TO HEAR THAT NUMBER. CAN WE GET A BREAKDOWN OF TIERS ONE, TWO, AND THREE? LET'S DOUBLE CHECK. 
          OUR MATH. 
          LET'S MAKE SURE WE DON'T HAVE A PROGRAM SOMEWHERE WHERE WORKDAY OR WHATEVER PUSHING ADDITIONAL MONIES. SO, HOW MUCH, ANDREW YOU KNOW THIS. LIKE, WHAT IS ONE PENNY EQUATE TO NR PROPERTY TAX? I DON'T HAVE THAT IN THE TOP OF MY HEAD WE'D HAVE TO RUN THAT CALCULATION BASED ON NEW VALUES. OKAY. WE CAN GET GET THAT FOR YOU. SO, YOU KNOW WHAT I MEAN YOU CAN'T JUST USE THE 44 CENTS RIGHT? BECAUSE YOU GOTTA PULL THE INTEREST IN SINKING OUT. SO, WHAT IS THE WHAT'S THE BREAKDOWN HERE FOR THE CURRENT YEAR? INTEREST IN SINKING CENTS, ROUGHLY 10 CENTS OFF OF 43, SO 33 CENTS BRINGS IN 59, 60 MILLION. CAN WE RUN THAT NUMBER, OR IS THAT TOO SIMPLE FOR ME TO DO IT THAT WAY? I DON'T WANT TO GET US OFF INTO THERE'S AN ERROR, BUT WE CAN GET IT BACK TO YOU. YEAH, $60 MILLION DIVIDED BY 33 CENTS, RIGHT, PER HUNDRED, DIVIDED BY A HUNDRED. IS THAT $1.8 MILLION? CAN WE GET ANYBODY WHO'S GOT A ACCOUNTING DEGREE TO VERIFY THAT? WHERE ARE YOU GETTING THE $60 MILLION FROM THAT YOU'RE DIVIDING? TOTAL PROPERTY TAXES THAT COME INTO THE CITY? OH, YEAH, YOU KNOW WHAT? I'D HAVE TO PULL OUT THE INTEREST IN SINKING. SO YOU'D TAKE THE $60 MILLION DOWN, WHAT, $22 OR $20 MILLION? SO THAT'S A GOOD CATCH. SO IT'S REALLY $40 MILLION DIVIDED BY .33. SO IT'S MORE LIKE, WHAT, $1.1, $1.2 MILLION PER PENNY? AGAIN, WE CAN WORK ON THAT. 
          AND GET IT BACK TO YOU, BECAUSE WE DON'T WANT TO GIVE YOU INCORRECT NUMBER HERE. OKAY. 
          SO LET'S GET A NUMBER PER PENNY OF WHAT WE'RE LOOKING AT, AND THEN LET'S GET THAT 3.5% SIMPLIFIED TO WHERE WE CAN SEE, BECAUSE WE'RE LOST IN UNDERSTANDING GROWTH. SO WHAT WE WOULD LIKE TO KNOW, I SAY THIS WE, MAYBE WE DON'T, IT'S JUST ME, BUT YOU GUYS PITCH IN. I WOULD LIKE TO KNOW HOW MUCH GROWTH HAS COME IN AND HOW MUCH OF THAT IS REALIZED IN HUNDREDS OF THOUSANDS. AND THEN I WOULD LIKE TO KNOW IF YOU INCREASE THE TAX, YOU KNOW, UP TO YOUR 3.5%, AND I'M NOT SAYING WE ARE, BUT IF YOU DID, WHAT'S THE MAXIMUM AMOUNT OR THE TOTAL AMOUNT OF ADDITIONAL REVENUES? IF I'M HEARING $700,000, THEN THIS IS AN EASY, FLAT BUDGET FOR US. I MEAN, LIKE, WE JUST VOTE AGAINST RAISING TAXES ALTOGETHER. WE CAN GO WORK THROUGH A $500-AND-SOMETHING MILLION BUDGET AND FIND $700K PRETTY EASY. 
          SO, LIKE, WE WOULDN'T INCREASE THE PROPERTY TAXES 3.5% AND GO DOWN THAT ROAD. WE WOULD TAKE THE WIN OF, LIKE, HEY, WE HELD YOUR TAXES FLAT, AND IT ONLY COST US $700,000, AND WE FIGURED THAT OUT IN EFFICIENCY. SO I WANT TO BE VERY UPFRONT AS WE'RE WALKING THROUGH A SUMMARY. THAT'S WHAT OUR DECISION COULD BE IN DIRECTING YOU GUYS COME FRIDAY. CORRECT. AND SO, LIKE, THERE'S NO BITE AT ANY APPLE. IF IT'S 700K. SO I DON'T THINK I'M UNDERSTANDING EVERYTHING CORRECTLY. I BET 
          [01:00:02]
IT'S MORE THAN THAT, AND THAT ONCE WE UNDERSTAND IT MORE. BUT CAN YOU GUYS JUST TAKE A MINUTE BEFORE WE GO ON TO THE NEXT ITEM? AND DO YOU HAVE THOSE NUMBERS? CAN YOU TELL US HOW MUCH? WE WOULD NEED TO, IT'S THE ENTIRE TRUTH AND TAXATION FORM. SO WHAT WE CAN DO IS THURSDAY OR FRIDAY, WE CAN COME BACK TO YOU AND DO A SUMMARY VERSION OF WHAT YOU'RE LOOKING FOR. 
          BECAUSE AGAIN, AND THE TRUTH AND TAX ACTION FORUM IS... 10 PAGES LONG AND THERE'S A LOT OF CALCULATIONS THAT GO INTO THAT, THAT FACTOR INTO THE $9,000 AND $11,000 YOU SEE IN THERE. 
          BUT WE CAN WORK ON A SUMMARIZED VERSION TO WALK YOU THROUGH THE VALUE, THE INCREASE IN VALUES, THE EXCLUSIONS THAT STATE LAW REQUIRES US, THOSE KIND OF THINGS AND BRING BACK TO HOW THAT 9-11 CAME ABOUT. 
          OKAY. SUMMARIZE THEN. WE'RE AT 43 CENTS. WE'RE GOING DOWN TO 42.5 CENTS, RIGHT? 42.421. 
          THAT'S OUR NO NEW REVENUE RATE. 
          SO IF YOU JUST TAKE ALL THE VALUES IN, YOU'D HAVE TO LOWER THE RATE DOWN TO 42 FROM 43. THE ASK FROM STAFF AND THE BUDGET THAT YOU'RE GOING TO GO THROUGH HERE OVER THE NEXT TWO AND A HALF DAYS ASSUMES THAT YOU INCREASE THAT TO 44.7. CORRECT? CORRECT. 
          OKAY, SO IT'S PRETTY FOUNDATIONAL THAT WE UNDERSTAND ON THE FRONT END KIND OF HOW THOSE MONIES ARE ARRIVED TO, SO YOU'VE ALREADY GOT THOSE TOTALS FIGURED OUT. THEY'RE BUILT INTO THE BUDGET. WE'VE DONE THE MATH AND THE WORK FOR THIS, BUT IF YOU'D LIKE TO DOUBLE-CHECK THE TRUTH IN TAXATION, WE CAN GET THAT. I THINK THE SHEETS, HAVE WE GIVEN THEM THE TRUTH IN TAXATION FORMS? I THINK YOU HAVE THOSE, BUT WE CAN, PROBABLY THURSDAY OR FRIDAY, WALK YOU THROUGH HOW THAT WORKS IF YOU WANT TO SPEND SOME TIME DOING THAT. 
          OKAY, SO $2.6 MILLION IN ADDITIONAL DEBT SERVICE HERE ON THIS NEXT LINE, INTEREST AND SINKING? IS THAT DEBT SERVICE? YES, SIR. SO WE'RE GOING TO PAY AN EXTRA $2.6 MILLION ANNUALLY, AND THAT REVENUE, HOWEVER MANY, I CAN'T REMEMBER WHAT THE $30 MILLION, $40 MILLION BORROW WAS BUT IT PAYS FOR THAT AMOUNT OF BORROW. AND THEN YOU... 
          BUILD THAT INTO THE TAX RATE, AND SO YOU ONLY INCREASE THAT ONE, YOU KNOW, HALF OF A ONE, HALF OF A PENNY, LESS THAN HALF A PENNY, TWO-TENTHS OF A PENNY? YES, AND THAT ALL COMES FROM THE DUE IN TAXATION CALCULATION, IT FACTORS THE CERTIFIED VALUES, THE TAX FREEZES FOR THE M&O RATES, AND THE DEBT COLLECTED, THE DEBT NEEDED TO PAY, THE REVENUES NEEDED TO PAY THE DEBT SERVICE FOR THE CURRENT YEAR TO ARRIVE AT THE RATE. THERE'S A SERIES OF CALCULATIONS THAT'S DONE BY BOTH THE COUNTY AND HERE. 
          SO THAT PART LOOKS GOOD. YOU BARELY INCREASED THAT RATE, AND IT ALLOWS US TO GAIN ANOTHER $2.6 MILLION IN EXPENDITURES WHERE WE'RE GOING TO PAY DEBT SERVICE AND BRING IN, YOU KNOW, SAY HOWEVER MANY TENS OF MILLIONS OF DOLLARS TO PUT INTO THE CITY. OKAY. WELL, ONE THING I WOULD POINT OUT, THOUGH NOT ALL HALF CENTS ARE EQUAL. IF YOU LOOK IT UP OPERATIONS AND MAINTENANCE AND GOING UP A HALF CENT AND HOW MUCH IT PRODUCES. AT THE END OF THE DAY, I MEAN, THE RATE, THE THING THAT MATTERS IS WITH THE BUDGET THAT WE HAVE RIGHT NOW, PROPERTY TAXPAYERS WILL PAY AN ADDITIONAL $3.5 MILLION. 
          THAT'S NOT PENNIES, THAT'S MILLIONS OF DOLLARS. 
          THAT'S WHAT THEY WILL BE PAYING UNDER WHAT NOW THE INTEREST IN SINKING FUND CAN'T CHANGE. I MEAN, IT'S GOING TO BE IT'S GOING TO BE $2.6 MILLION BECAUSE WE'VE ALREADY ISSUED THAT DEBT. 
          AND THAT WAS THE INCREASE OF YOU KNOW, SO THAT'S GETTING US UP TO THE 20 MILLION, THE OPERATIONS AND MAINTENANCE RATE, I WOULD GUESS IF WE'RE LIMITED ON THE MONEY, THERE'S SOMETHING THAT'S CHANGED IN PROPERTY TAX VALUES THAT HAS MADE THAT COME DOWN BECAUSE WE'RE ACTUALLY GOING UP ON THE RATE. BUT IT'S GENERATING LESS MONEY. 
          THE THING YOU'VE GOT TO CONSIDER IS IT'S NOT JUST THE PENNIES. IT'S THE PENNIES TIMES THE VALUE OF PEOPLE'S HOMES THAT DETERMINES HOW MUCH THEY PAY US. SO WE CAN SAY IT'S A HALF CENT, BUT, AGAIN, ALL HALF CENTS ARE NOT EQUAL. 
          IT DEPENDS ON HOW MUCH THE TOTAL. THE IMPORTANT PART TO ME IS HOW MUCH MORE TAXPAYERS PAY US. 
          THAT'S WHAT COMES OUT OF THEIR POCKETS. SO IT'S MORE THAN JUST HALF PENNIES WHEN YOU LOOK AT IT SIR. SO, JUST TO GO BACK A MINUTE, THE INCREASE IN ESTIMATED TAX COLLECTIONS ON THE M&O SIDE, THE 9-11, BUT IN THE BOOK IT'S 700, BUT 200,000 OF THAT IS THE TIERS, RETENTION OR REBATE, RIGHT, BASICALLY, IS WHAT WE'RE SAYING. SO OF THIS 9-11, THAT INCLUDES GROWTH AND INCREASE IN EXISTING, CORRECT? SO THAT'S NOT SEPARATED OUT. SO THIS IS BOTH THE NEW PROPERTIES THAT HAVE BEEN BUILT. 
          ALONG WITH THE INCREASE IN THE EXISTING, CORRECT? YES. OKAY. I JUST WANTED TO MAKE SURE. YEAH, I WANT 
          [01:05:01]
TO GO BACK, COUNCILMAN SIMPSON. SO 25, 20 TRILLION, 700 PLUS MILLION. 26, 20 TRILLION, 900 PLUS MILLION. 
          VALUES WENT UP. THAT WOULD BE BILLION, NOT TRILLION. I'M SORRY, 20 BILLION, YEAH. 
          SORRY. FELT LIKE 20 TRILLION, DIDN'T IT? 20 BILLION. 
          SO LIKE WE DIDN'T HAVE A DECREASE IN VALUE AND SO LIKE WE'VE BROUGHT NEW VALUES IN. 
          YOU SAW A DECREASE IN VALUE BECAUSE BASICALLY THE SAME AMOUNT IS NOW FREEZE IN THE TAX LIMITATION FOR 65 AND UP. SO ANYTHING WE GAINED, IT ENDED UP BEING FROZEN. 
          BASICALLY A NET NEUTRAL, RIGHT? YES. OKAY, SO I REALLY DO WANT TO FOCUS IN ON BECAUSE I KNOW WE DON'T UNDERSTAND AND WE'VE READ THE THOUSAND PAGES AND WE'VE BEEN HERE FOR YEARS WITH YOU GUYS. THEY HAVEN'T. 
          SO THEY CANNOT HEAR THAT MY TAXES ARE GOING UP AND THAT THE NET REVENUE WAS 900K. I DON'T KNOW HOW WE ARRIVE AT THAT WITHOUT HAVING SOMETHING MORE FIRM. SO WE WOULD NEED TO HEAR HOW MUCH AN ADDITIONAL TAX HAS COME IN FROM NEW PROPERTY THAT WE'VE BROUGHT ON, AND THEN HOW MUCH DOES EACH PENNY EQUATE TO IF YOU RAISE THE TAX RATE. 
          COUNCIL, I KNOW WE CAMPED ON A COUPLE OF THESE PAGES, AND THEN WE'RE LOOKING AT KIND OF, YOU KNOW, INTEREST IN SINGING MNO AND ALL THAT. 
          WHAT OTHER QUESTIONS DO YOU GUYS THINK WOULD BE HELPFUL? YOU KNOW, WE NEED TO LAY A FOUNDATION HERE TODAY, AND THIS IS KEY. THIS IS LIKE FINISH FLOOR ELEVATION 0100. LIKE, IF WE DON'T FINISH OUT AND FIGURE OUT THIS AMOUNT RIGHT HERE, THEN EVERYTHING IS REAL DIFFICULT TO UNDERSTAND MOVING FORWARD. 
          SO LIKE WE... WE NEED TO HAVE A GOOD GRASP ON WHERE WE WANT TO END UP ON FRIDAY. WHAT ELSE DO YOU NEED TO KNOW ON THESE PAGES? CAN WE GO TO THE TAXPAYER IMPACT STATEMENT THAT'S ON THE AGENDA? MAYBE WE CAN DISPLAY THAT ON THE BECAUSE I JUST WANT TO GO THROUGH THIS AND MAKE SURE THAT I KNOW, AGAIN, WHAT I'M READING HERE. SO I DON'T KNOW IF WE CAN PUT IT ON THE SCREEN SO. STEPHANIE, CAN YOU ADD THE TAX IMPACT STATEMENT ON THE SCREEN? AGAIN, I GUESS THIS IS IN THE FORMAT THAT THE STATE REQUIRES US TO PRODUCE THIS. AND I GUESS THE STATE SAYS, LIKE WE GO OVER TWO COUNTIES. I THINK WE'RE THE ONLY CITY IN THE STATE. 
          BUT YOU'VE GOT TO PRODUCE THIS HOW IT WOULD IMPACT EACH COUNTY BASED ON THE APPRAISALS. 
          ACTUALLY, IT WOULD JUST BE THE, WE HAD IT ON THE AGENDA TODAY. 
          STEPHANIE, I THINK HE'S LOOKING FOR THE AGENDA ITSELF. IT'S JUST ON THE BACK PAGE OF YOUR AGENDA, GUYS. IT BOILS DOWN PRETTY EASY IF YOU JUST WANT TO JUMP TO THE BOTTOM LINE. WELL, LET ME START AT THE TOP LINE, IF YOU DON'T MIND. SO OUR CURRENT RATE, SO THIS IS FOR RANDALL COUNTY RESIDENTS. OUR CURRENT RATE IS $43.07. THE BUDGET IS $44.728. SO WHAT YOU'RE PRESENTING RIGHT NOW IS... 44-728. IT GETS IN HERE THEN THE MEDIUM VALUE OF HOMESTEAD IS ACTUALLY GOING UP AND THE MEDIUM VALUE HOMESTEAD PROPERTY TAX BILL. 
          SO IF WE APPROVE IT AS WE'RE APPROVING IT RIGHT, THE BUDGET AS IT WITH THIS 44-728 TAX RATE, THE DIFFERENCE TO THE CURRENT TAX BILL IS THEY PAY AN ADDITIONAL $60 ON AVERAGE. 
          BECAUSE THAT COULD AVERAGE BECAUSE SOME PEOPLE'S VALUES MAY HAVE GONE UP, 
          [01:10:02]
SOME PEOPLE'S MAY HAVE GONE DOWN. BUT IF WE GO WITH THE NO NEW TAX RATE OR NO NEW REVENUE TAX RATE, THAT'S 42,170, THEN THE AVERAGE PERSON WOULD ACTUALLY SEE A $5 DECREASE IN THEIR TAX BILL. 
          IS THAT WHAT THIS CHART IS SHOWING? YES, SIR. 
          YES, SIR. BUT IF YOU LOOK AT POTTER COUNTY, AND TAKING THE SAME PENNIES, THE SAME TAX RATE, A LOWER HOMESTEAD VALUE, BUT YOU SEE THERE, I GUESS THE HOMESTEAD VALUES ARE GOING UP. 
          SO IF WE TAKE THE CURRENT TAX RATE, THE AVERAGE TAXPAYER IS GOING TO PAY $85 MORE. BUT EVEN AT A NEW REVENUE TAX RATE, WHILE RANDALL COUNTY RESIDENTS ON AVERAGE WOULD SEE A $5 DECREASE, EVEN AT THAT, THE POTTER COUNTY... CITIZENS WOULD BE SEEING A $45 INCREASE. IS THAT CORRECT? YES, SIR. SO IT'S NO NEW REVENUE, BUT AGAIN, SOME TAXPAYERS WILL NOT PAY ANY MORE, BUT IF THEIR AVERAGE HOME VALUE HAS GONE UP, THEY'RE GOING TO BE PAYING MORE FOR THAT. I GUESS IS THAT THE DIFFERENCE BETWEEN WHERE RANDALL AND POTTER COUNTY LOOKS DIFFERENT? THAT'S A GREAT QUESTION. IS THAT CORRECT CHART? YES, SIR. 
          HOW DOES THAT WORK? BECAUSE IF YOU LOWER THE RATE, IT'S GOTTA BE, A ZERO CHANGE CORRECT? THE VALUES INCREASE, SO YOU'RE PAYING BASED ON YOUR HOUSE VALUE. SO IF YOUR HOUSE VALUE INCREASES MORE THAN ANOTHER AREA, EVEN THOUGH THE RATE IS LOWER, YOU END UP PAYING MORE BECAUSE OF YOUR VALUE. IF I READ THAT I'M A POTTER COUNTY RESIDENT. 
          MY HOUSE VALUE WENT UP, SO THE CITY, THIS IS JUST THE CITY PORTION. THIS DOESN'T INCLUDE ALL OF THE OTHER TAXING ENTITIES. 
          MY HOUSE VALUE WENT UP, SO THE CITY LOWERED MY RATE IN ORDER TO FLAT IT OUT TO WHERE THERE WOULDN'T BE ANY INTEREST TO ME. AND I STILL HAD TO PAY $45 MORE. SO THE FLATTENING APPLIES TO EVERYONE, AND YOUR VALUES ARE UNIQUE TO YOU. YOUR HOUSE COULD BE WORTH MORE THAN SOMEONE ELSE'S HOUSE. I UNDERSTAND THAT. I'M JUST SAYING THE CHART ITSELF RECOGNIZES AN INCREASE, WHATEVER THE AMOUNT IS OVER HERE DOESN'T MATTER, IT'S GONNA BE INDIVIDUALIZED BUT THE PRINCIPLE IN THE IN THE CALCULATION IS THAT A CORRECT CALCULATION YES HUH YEAH THAT WOULD COME I GUESS FROM PRATT AND THE MEDIAN JUST MEANS HALF THE HOUSES ARE ABOVE 155 AND HALF THE HOUSES ARE BELOW 155 IF YOU LOOK AT RANDALL COUNTY YOU SAW AN INCREASE BUT NOT AS MUCH WHICH IS WHY THEY WOULD GET SOME TAX RELIEF ON THE NO NEW PART BUT BUT BECAUSE ACROSS THE BOARD POTTER COUNTY POTTER COUNTY PROPERTY VALUES HAVE GONE UP ACCORDING TO THIS, MORE EXPONENTIALLY THAN RANDALL COUNTY DID IN THE CURRENT ASSESSMENT. 
          AND JUST TO SPEAK IT OUT SINCE WE'VE GOT IT UP. 
          ON THE DEAL. THAT'S ANNUAL. 
          THAT'S NOT MONTHLY, RIGHT? YOU DON'T HAVE ANY MONTHLY BREAKDOWNS THERE. THAT IS CORRECT. THEY REPRESENT THE ANNUAL BILL. 
          AND AGAIN, I'D LIKE TO EMPHASIZE, THIS IS A STATE-MANDATED TABLE. 
          IT DOESN'T TRULY HELP AN INDIVIDUAL PERSON SEE WHAT'S HAPPENING TO THAT INDIVIDUAL PERSON. THE TRUTH IN TAXATION IS... IS A CITY AT A CITYWIDE LEVEL. AND SO EVERY INDIVIDUAL PERSON, WE HAVE OVER 70,000 UTILITY ACCOUNTS, I'M ASSUMING 70,000 PROPERTIES. EACH ONE OF THEM HAS A DIFFERENT UNIQUE STORY THAN THE PERSON NEXT TO THEM, WHETHER THERE'S AN EXEMPTION, A FREEZE APPLICATION, A HOMESTEAD, OR A VALUE OF THEIR HOME, OR A WORKSHOP OR NO WORKSHOP. 
          EVERYTHING'S DIFFERENT PER PERSON. 
          BUT AGAIN, THANKS TO THE STATE, HERE'S HOW WE GOT TO EXPLAIN IT TO EVERYBODY. 
          SO, MAYOR, BACK TO YOUR QUESTION WHEN YOU'RE LIKE, YOU KNOW, WE WANT THE BREAKDOWN OF THE PER PENNY INCREASE TO THE HOUSEHOLD. YOU COULD BREAK THIS DOWN USING THIS CHART. I MEAN, IF YOU'RE LOOKING AT THE CURRENT TAX RATE AT .43070, PROPOSED TAX RATE AT .447. SO YOU'RE LOOKING AT 1.7 PENNIES, CORRECT? YES. 
          ON AVERAGE, SO YOU DIVIDE THAT 80, LET'S JUST TAKE POTTER COUNTY, 85, ABOUT 1.7, YOU'RE LOOKING AT THE ONE PENNY, BUT THAT'S A MEDIAN RATE, NOT INDIVIDUALLY. 
          YEAH, I DON'T KNOW. I THINK WE'VE GOT THAT NUMBER. I KNOW WE'VE DISCUSSED IT IN THE PAST. IT'S KIND OF LIKE WHAT THAT ONE PENNY VALUATION EQUATES TO. YOU KNOW, IT USED TO BE 1.2 MILLION PER PENNY, AND THEN IT WENT UP TO LIKE 1.4, 1.5, SOMETHING LIKE THAT. 
          YOU KNOW, MR. FREEMAN'S CORRECT. YOU DO HAVE TO BACK OUT THAT INTEREST IN SINKING AMOUNT, AND THEN THAT'S EVEN MORE DIFFICULT 
          [01:15:03]
BECAUSE THAT INTEREST IN SINKING AMOUNT IS JUST THE AMOUNT THAT ALLOWS YOU TO PAY IN DEBT SERVICE. THAT'S NOT REALLY WHAT YOU CAN DEDUCT. SO WE WOULD GREATLY APPRECIATE A SIMPLIFIED EXPLANATION AND DETERMINATION FOR WHAT ONE PENNY IS. REVENUE AND COST. SO WHAT IS ONE PENNY? GENERATING REVENUE TO THE CITY AND WHAT IS ONE PENNY? WHAT IS THE COST TO THE RESIDENT? RIGHT, IT'S GOOD TO DEPEND IF IT'S DEBT SERVICE YOU CAN EQUAL OUT WHAT YOU WANT THAT ONE PENNY IS BUT IT'S NOT THE SAME ON THE ON-INSIDE WITH THE CALCULATION YEAH, AND WHERE WE'RE LOST IS CONFLATING AN EXPENDITURE WITH A REVENUE SO PART OF OUR INTEREST IN SINKING THAT 10 CENTS THAT'S DEDICATED TO THAT GOES TO DEBT SERVICE BUT THAT'S NOT THE AMOUNT THAT IT EQUATES TO THE SAME AS WHAT THE O&M IS JUST LIKE WE WOULDN'T TRY TO FIGURE OUT THE EXPENDITURES PER PENNY SO YOU CAN'T FIGURE OUT YOUR DEBT SERVICE PER PENNY ON THAT SIDE WE NEED A CLEAN LEDGER AND THE ONLY WAY I KNOW TO DO IT IS TO LOOK AT THE TOTAL RATE SO IF YOU IF YOU HAVE A TOTAL RATE OF 42 CENTS 43 OR 44 WHAT'S THE TOTAL REVENUES THAT IT BRINGS IN? BECAUSE ALL WE'VE REALLY SAID HERE FOR THE PAST FEW MINUTES IS THIS IS JUST, INS IS JUST DEBT SERVICE. 
          THAT'S JUST THE AMOUNT YOU CAN PAY. THAT DOESN'T NECESSARILY EQUATE DOLLAR FOR DOLLAR WITH HOW MUCH THAT REVENUES FOR THE CITY. CORRECT, BUT AGAIN, I'M NOT FOCUSING ON RATE. I'M JUST SAYING HOW MANY MORE DOLLARS ARE TAXPAYERS PAYING OR PROVIDING TO HELP SUPPORT THE DEBT THAT WE'VE ISSUED. 
          THAT'S MY POINT. 
          OKAY, AND I THINK WE ALL ARE QUESTIONING THE $911,000 IN HOW DOES THAT FACTOR IN THERE AND THEN REALLY WHAT WOULD BE THE IMPACT IF WE JUST LEFT THE NO NEW REVENUE RATE OR LEAVE IT FLAT, WHICH WOULD BE $0.42. ALL RIGHT, MS. LOLA, I APPRECIATE YOU GOING BACK. 
          Y'ALL GOOD TO KEEP GOING FOR A FEW MORE MINUTES, AND THEN WE'LL TAKE A QUICK RECESS HERE ONCE THIS MORNING. OKAY, THANK YOU. 
          SO WE'RE GOING TO MOVE ON TO THE IMPACT OF FROZEN TAXES, AND THAT FACTORS INTO WHAT WE EVENTUALLY RECEIVE IN TERMS OF TAX, REVENUES FROM OUR TAXES. 
          THE CITY OF AMARILLO OFFERS TAX LIMITATIONS ON HOMESTEADS OF TAXPAYERS WHO ARE DISABLED OR AGE 65 OR OLDER. THE CITIZENS HAVE THE RIGHT TO TRANSFER THE BENEFIT OF THE TAX CEILING TO ANOTHER HOMESTEAD IN THAT TAXING ENTITY. WE SHOW THE IMPACT OF FROZEN TAX LEVY LOSS FOR FY2026-27 AT $7.5 MILLION. 
          AND THE PORTION OF THE TAX RATE THAT IS LOST IS 0.041487 WE ILLUSTRATE THE HISTORY OF FROZEN TAXES AND THE PORTION OF TAX RATE LOST IN THIS CHART. AS YOU CAN SEE, THE FROZEN TAXES HAVE BEEN INCREASING YEAR OVER YEAR, AND THE PORTION OF THE TAX RATE HAS ALSO BEEN INCREASING, WHICH MEANS THAT WE'VE BEEN SEEING PEOPLE UTILIZE THE BENEFIT PROVIDED TO FREEZE THEIR TAXES IN THE CITY. 
          OVER HERE WE SHOW A COMPARISON OF OUR TAX RATE VERSUS OUR POPULATION AND WE SHOW THIS FOR SEVERAL CITIES. SO THE CITY OF AMARILLO IS RIGHT THERE TOWARDS THE BOTTOM LEVEL OF TAX DOLLARS PER POPULATION. 
          IN THE CHART WE HAVE ALL THE JURISDICTIONS THAT CHARGE HIGHER TAX LEVELS ACROSS THE BOARD. 
          THIS IS ALSO A SIMILAR CHART THAT SHOWS THE TAX RATE VERSUS POPULATION AND JUST LIKE THIS OTHER CHART WE HAVE AMARILLO IN GREEN AND THE OTHER JURISDICTIONS IN BLUE AND WE SEE THE TAX RATES FROM THE HIGHEST ALL THE WAY THROUGH TO THE LOWEST AND AMARILLO IS TOWARDS THE LOWER LEVEL OF THE TAX CHART. 
          OVER HERE WE SHOW THE TAX REVENUE PER CAPITA, WHICH IS THE TAX RATE DIVIDED BY THE POPULATION. AGAIN, WE HAVE CITY OF AMARILLO IN GREEN, THOUGHT TO THE LAST LOWEST TAX REVENUE BROUGHT IN BY POPULATION. AND WE SEE OTHER 
          [01:20:03]
JURISDICTIONS TOWARDS THE LEFT OF THE SCREEN COMING AT HIGHER LEVELS. 
          MAYOR, THIS WOULD PROBABLY BE A GOOD NATURAL STOPPING PLACE. 
          ALL THE PREVIOUS WAS KIND OF THE HISTORY AND LEADING UP TO IT, AND THEN THE NEXT SLIDES WILL TAKE A DEEPER DIVE INTO THE ACTUAL BUDGET. 
          WE SHOULD BE GOOD TO GO UNTIL WE ADJOURN FOR LUNCH. 
          WE'LL CALL OURSELVES BACK INTO SESSION HERE, HAND IT BACK OVER TO MISS LOLA IF YOU'LL TAKE OFF DRIVING AGAIN. 
          JUST ONE UPDATE, GOING THROUGH OUR WORKSHEETS, THE VALUE OF ONE CENT IS 1.6 MILLION DOLLARS. 
          1.6 MILLION? YES, SIR. OKAY, SO EACH PENNY REVENUES 1.6 MILLION? YES. OKAY, THANK YOU. 
          THE NEXT SECTION OF THIS WORKSHOP WILL BE GOING THROUGH THE CASH FLOWS, BUDGET HIGHLIGHTS, BUDGET SUMMARY, THE PROPOSED FEE CHANGES, AS WELL AS THE COST RECOVERY IMPLEMENTATION. WE'LL ALSO BE WALKING THROUGH THE GENERAL FUND REVENUE AND EXPENSE CHANGES, AS WELL AS TOTAL DEBT BEING SUPPORTED BY VARIOUS FUNDING SOURCES. 
          WE'LL BE REVIEWING DEPARTMENTAL SUPPLEMENTAL REQUESTS AS WELL AS CIP REQUESTS AND REVIEWING RAISES COST OF LIVING AND COMPENSATION STUDY ISSUES AS WELL AS DISCUSSING FUTURE BUDGET PRIORITIES. 
          WE'LL BE GOING THROUGH THE CASH FLOWS BY FUND. THE VARIOUS FUNDS GOING TO BE REVIEWED IT WILL BE THE GENERAL FUND. THE WARDEN SEWER UTILITY FUND, THE AIRPORT FUND, DRAINAGE UTILITY FUND, FLEET SERVICES, INFORMATION TECHNOLOGY FUND, THE RISK MANAGEMENT FUND, AS WELL AS THE HEALTH INSURANCE FUND. 
          AND WE'LL HAVE YOU LOOK AT THE ADDITIONAL MATERIALS PROVIDED THIS MORNING, THE PRINTOUTS. 
          ARE THE UPDATED CASH FLOWS FOR SPECIFIC FUNDS THAT WE HAVE PROVIDED. 
          SO THE FUNDS WILL BE PROJECTED UP. SHORTLY. 
          SO TO WALK INTO THIS EYES WIDE OPEN, WE SAID CASH FLOWS, SO WE ARE LOOKING AT CASH FLOWS, RIGHT? YES, SIR. 
          ACTUAL CASH FLOWS. YES, SIR. 
          OKAY, SO LIKE WHEN WE WENT THROUGH THE AUDIT, WE HAD DEPRECIATION AND ALL THAT OTHER STUFF. NOT IN THIS CONVERSATION. THESE ARE JUST CASH FLOWS. WE DO HAVE THAT AS A DEDUCTION IN SOME CASES FOR THE ENTERPRISE FUND, AND WE'LL GET TO THAT. CAN YOU BE MINDFUL OF THAT AS AN INTEREST OF OURS AND SPELL OUT OR SEPARATE OUT THE ACTUAL CASH FLOWS? SO LIKE SEWER AND WATER, IF THERE WAS AN $18 MILLION DEDUCT FOR A DEPRECIATION THAT DOES NOT FACTOR ON THE CASH STANCE OR POSITION, YOU COULD FACTOR THAT BACK IN ON YOUR WORKSHEETS. RIGHT. THE DEPRECIATION IS DEDUCTED IN THIS ASSESSMENT, SIR. OKAY. 
          BUT I'M ASKING, WE JUST SAID THIS WAS CASH FLOWS, SO LOOKING AT CASH, CAN YOU ADD THAT BACK IN FOR US AS WE WORK THROUGH THESE SHEETS? THEY ARE NOT ADDED, BUT AS FAR AS HOW WE PRESENT THE CASH FLOWS, THE DEPRECIATION IS DEDUCTED FROM OUR OPERATING EXPENDITURES IN THIS PRESENTATION. YEAH, AND I'M ASKING, CAN WE ADD THAT BACK IN SO WE CAN GET A CASH POSITION? FOR THE ACTUAL EXPENDITURES VERSUS REVENUES AS WE WORK THROUGH EACH DEPARTMENT, OR I'M SORRY, EACH ONE OF THESE FUNDS. I THINK DOING THAT WILL BE DIFFERENT FROM WHAT WE'VE DONE IN PRACTICE. I AGREE. IT'S VERY DIFFERENT THAN WHAT WE'VE DONE 
          [01:25:02]
PREVIOUSLY. OKAY. BUT I'M JUST ASKING IF YOU HAVE THE ABILITY TO DO THAT AS WE WALK THROUGH IT. 
          I DON'T HAVE THE NUMBERS TO ADD, BUT THEY'VE BEEN DEDUCTED ON THE WORKSHEETS, THE EXCEL VERSION. WHICH IS HOW WE'VE CUSTOMARILY PRESENTED THE CASH FLOW. OKAY. WELL, LET ME REMAIN HELPFUL THEN AND NOT GET IN THE WAY OF YOU DOING THE OVERVIEW. 
          MAYBE WE CAN DIG INTO THAT WHEN WE GET THERE. 
          OKAY. 
          STEPHANIE, DO YOU WANT TO SCROLL UP A LITTLE BIT? THANK YOU. 
          THIS WILL BE PAGE 11. THANK YOU. SO WE'LL BE GOING THROUGH THE GENERAL FUND CASH FLOW. 
          THE FIRST COLUMN IS THE ORIGINAL BUDGET AND THEN WE HAVE ESTIMATES THROUGH THE END OF THE YEAR KNOWN AS REVISED ESTIMATES OR PROJECTED YEAR-END NUMBERS AND THEN WE HAVE OUR PROPOSED BUDGET FOR 2026-2027 AND HERE WE ARE TRYING TO PROJECT THE AVAILABLE RESOURCES WE HAVE BY FUND THROUGH THE END OF THE YEAR FOR 2026-2027. 
          SO GOING THROUGH THE GENERAL FUND, WE HAVE OUR REVENUE SOURCES ALL COMBINED TOGETHER, AND THEN WE HAVE OUR GRANT INCOME AS WELL AS TRANSFERS FROM OTHER FUNDS. THE ESTIMATES THROUGH FY26 FOR TOTAL REVENUES IS AT $283.4 MILLION, WHICH WHEN ADDED TO OUR BEGINNING BALANCE AVAILABLE FUNDS GIVES US $343.6 MILLION IN TOTAL AVAILABLE RESOURCES. 
          AND THEN WE DEDUCT OUR ESTIMATES OF OUR EXPENDITURES THROUGH THE END OF 25-26, AND WE HAVE TRANSFERS BEING SPECIFIED AT $17.8 MILLION IN TOTAL. TOTAL EXPENDITURES COME UP TO $281 MILLION FOR FY25-26. 
          LOLA, CAN I ASK YOU A QUESTION? WHY ARE TRANSFERS DOWN $6 MILLION, TRANSFERS FROM OTHER FUNDS? OKAY. PROJECTED YEAR-END IS BASICALLY 11-5, 11-4-8. OKAY. 
          PROPOSED BUDGET IS 5.4. OKAY. 
          WHY IS THAT? SO WE'LL HAVE TO WE CAN CHECK IN TO SEE THE DETAILS, BUT IT'S TYPICALLY THE ACTIVITY THAT GOES ON DURING THE YEAR AND WHAT WE PROJECT TO COME UP FOR THE NEXT YEAR BASED ON WHAT WE SEE, BUT WE'LL CHECK IN TO SEE THE DETAILS FOR THAT. 
          THANK YOU FOR THE QUESTION. 
          SO I'VE BEEN TOLD THERE'S A ONE-TIME FLEET CHARGES THAT RESULTED IN THE LOWER TRANSFER. YEAH, THIS LAST YEAR, WITH CURRENT FISCAL YEAR, WE WERE TRANSFERRING $6 MILLION, BUT BASED OFF OF FUND AVAILABILITY AND LIMITS FOR NEXT YEAR, WE DECIDED THAT THAT FUND NEEDED THE FUNDS LEFT IN THAT FUND, SO WE COULDN'T BRING THEM BACK OVER TO THE GENERAL FUND. SO THAT FUND WAS, WAS IT FLEET AGAIN? IS THAT WHAT IT WAS, JUSTIN? YEAH, FLEET NEEDED. 
          TO KEEP ITS FUNDS FOR ZEPKIN FISCAL YEAR. BUT DID WE CHANGE POLICY? I MEAN, WAS THAT JUST A SUBJECTIVE DECISION OF LIKE, WELL, WE JUST, THEY NEEDED IT, SO WE LEFT IT? I MEAN, TO ME THAT DOESN'T MAKE SENSE OF ARE WE CHARGING FLEET AND CAN THEY NOT PAY IT? NO, TYPICALLY, AND LOLA, JUSTIN, KATRINA, ANDREW, CORRECT ME, IS WHENEVER THOSE FUNDS ARE HEALTHY YEAR TO YEAR, WE BRING THE EXCESS BACK TO THE GENERAL FUND. WHEN THE FUNDS ARE NOT AS HEALTHY, WE KEEP THE FUNDS IN THAT PARTICULAR FUND IN ORDER TO MAINTAIN RESERVES. 
          SO THAT'S A SUBJECTIVE DECISION BASED ON THE... IT'S BASED OFF RESERVES, NOT SUBJECTIVE. 
          IT'S BASED OFF RESERVES. BASED ON RESERVES. SO, ANDREW, YOU HAVE... I MEAN, I GUESS, I MEAN, SO WE'RE STILL, I MEAN, I KNOW HOW WE DO THE INTERDEPARTMENT TRANSFERS BUT WE'RE STILL CHARGING FLEET, CORRECT? IS THAT... ANDREW, YOU'RE JUMPING. 
          BUT THEY JUST DIDN'T PAY? NO, THEY'VE BEEN PAYING. IT'S JUST A MATTER OF BALANCING THE FUND EACH YEAR TO SEE HOW MUCH IS EXCESS 
          [01:30:01]
VERSUS NOT. SO IF THERE'S AN EXCESS, THAT'S A ONE-TIME TRANSFER BACK. SO LIKE YOU'RE SAYING, WHEN YOU SAY IT'S HEALTHY, IF THERE'S AN EXCESS OF FUNDS IN FLEET, WE'LL TRANSFER BACK TO GENERAL FUND. IF THERE'S NOT AN EXCESS, WE JUST KEEP IT. 
          AND CAN I ADD, KEEP IN MIND, I'M OVER HERE, KEEP IN MIND FLEET CHARGES OTHER DEPARTMENTS. SO FLEET MAKES THESE PURCHASES, THEY RENT THEM OUT TO THE DEPARTMENTS THAT PAY A RATE BACK TO FLEET. SO FLEET NEVER PAYS GENERAL FUND. IT IS SIMPLY THAT STATE OF WHERE WE ARE AND IF WE HAVE EXCESS FUND BALANCE THAT WE CAN, WE MOVE IT BACK TO GENERAL FUND. SOME YEARS WE DON'T. 
          AND THIS YEAR WE FELT IN REVIEWING THIS THAT WE DIDN'T. 
          AND SO WE FELT THAT NEEDED TO STAY TO MAINTAIN AN ADEQUATE FUND BALANCE ON FLEET. 
          I GUESS I'M JUST CONFUSED BECAUSE I THINK OF BUSINESS, I MEAN I'M THINKING OF FLEET AS A BUSINESS, YOU KNOW, A BUSINESS INSIDE OF A BUSINESS. AND IF THEY'RE CHARGING OTHER DEPARTMENTS, IT'S GOT TO COVER THE EXPENSE OF THE FLEET COST. SO IF WE'RE DOING THAT, WHY DO WE HAVE YEARS, WHAT'S THE FLUCTUATION OF THE FLEET? THAT'S ONE REASON WE WENT WITH LEASE AND ALL THOSE KINDS OF THINGS. WHAT'S FLUCTUATING? MAINTENANCE? I MEAN, WHAT FLUCTUATES TO DETERMINE A GOOD YEAR AND A BAD YEAR? IT'S MAINTENANCE AND OUTLAY AS FAR AS NEW FLEET PURCHASES WHETHER IT'S LEASE VS DEBT FUNDED. THAT WAS ONE OF THE THINGS WE DISCOVERED PREPARING THIS YEAR'S BUDGET IS WE DIDN'T HAVE IT FULLY BUILT IN OF THE EQUIPMENT WE PURCHASED, ON OUR LEASE PROGRAM. SO THAT'S THAT SOMETHING WE HAD TO ABSORB THIS YEAR THAT EATS INTO THAT AVAILABLE FUNDS. SO, PROBABLY NOT THE PROPER USE FOR OF TERMS LOW-LIFE SO DON'T SCREAM AT ME BUT, IF FLEET SHOW'S A PROFIT. 
          WE CAPTURE THAT IN A TRANSFER BACK TO THE GENERAL FUND. IF IT DOESN'T SHOW A PROFIT, WE'RE NOT SUPER HEALTHY. WE MAINTAIN IT BECAUSE WE HAD SOME UNEXPECTED EXPENDITURES OR SOMETHING. IS THAT A FAIR WAY TO LOOK AT IT? THANK YOU. I'M JUST GOING TO ADD, IT TYPICALLY IS IF YOU LOSE 20 ENGINES WITH THE COST OF ENGINES IN THE DOWNTIME, THAT'S USUALLY WHERE THOSE VARIANCES COME IN. 
          QUESTION, MS. LOLA. IN THE AUDIT THAT WE WENT THROUGH, 6.6 MILLION THAT NEEDED TO BE COLLECTED IN 24-25 AND THE AUDITOR PULLED IT OUT, SAID YOU'LL HAVE TO CATCH THAT OR CAPTURE THAT IN 26, SO IT'S IN OUR CURRENT YEAR. SO WHERE DOES THAT 6.6 FROM OTHER GOVERNMENT FUNDS, YOU KNOW, AS OTHER GOVERNMENT ENTITIES THAT PAID THE CITY, WHERE DOES THAT 6.6 SHOW UP HERE? WHICH LINE ITEM? SO IT'S JUST A REPORTING ADJUSTMENT. 
          IT WAS A REPORTING ADJUSTMENT FOR THE AUDIT, AND THE REVENUES WERE RECEIVED. 
          IT WILL BE IN THE OPERATING INCOME LINE. 
          OKAY, SO WITHIN THE ADJUSTMENT THAT YOU MADE, THIS $267,000 IS COMPRISED OF ALL OF THOSE REVENUES, RIGHT? YES. AND YOU'RE SAYING THE ADDITIONAL $6.6 MILLION... CAME IN TO THAT 267. IT'S INCLUDED IN THAT NUMBER? IT'S ALREADY INCLUDED. OKAY, AND THAT'S BROKEN OUT. I GUESS WHEN YOU GIVE US THE BREAKDOWN FOR THE 267, YOU CAN GO THROUGH AND SHOW US WHERE ALL THOSE MONIES COME FROM. 
          AND THEN ON THE 11.4 CAN WE SEE THE BREAKDOWN OF THOSE TRANSFERS FROM OTHER FUNDS AS WELL. SO WE CAN SEE THAT MAY HELP US UNDERSTAND WHY FLEET, YOU KNOW, DIDN'T PAY OR WHAT IT IS STILL PAYING, YOU KNOW, LIKE HOW MUCH OUT OF THE $5.4 MILLION IS FLEET, RIGHT, VERSUS OTHER FUNDS. WE CAN PROVIDE THE BREAKDOWN FOR TRANSFERS FROM OTHER FUNDS. THANK YOU. 
          JUST A COUPLE OF QUESTIONS. 
          SO. WHEN I LOOK AT OUR PROPOSED BUDGET, WELL, LET ME START WITH THE PROPOSED PROJECTED YEAR-END. TOTAL REVENUES, $283,425,958 IS WHERE WE'RE GOING TO FINISH ON THE PROJECTIONS, I GUESS, ACCORDING TO THIS. AND THAT'S AGAINST EXPENSES OF $281,095,606. SO WE'RE ACTUALLY ABOUT 1.8 TO THE GOOD, I GUESS, THIS YEAR. 
          OF REVENUES, AND IT LOOKS LIKE THAT ALL CAME FROM REVENUE. YES, SIR. THEN WHEN I LOOK AT NEXT YEAR, WE'RE GOING, WE HAVE 280 IN REVENUES AND 287 IN EXPENDITURES. SO TO BALANCE THAT OUT, WE'RE HAVING TO TAKE, I GUESS, $7 MILLION OUT OF RESERVES, OR HOW DOES THAT WORK? TECHNICALLY, WE ARE PULLING MONEY THAT'S AVAILABLE FROM THE BEGINNING OF THE YEAR TO... 
          COVERED THE EXPENDITURES AND 
          [01:35:11]
THEN IT LOOKS LIKE AT THE END OF THE YEAR ARE AVAILABLE FUNDS THE 55 MILLION IS BASICALLY BECAUSE DOWN BELOW THERE WE HAVE 55 MILLION IS OUR RESERVE THAT WE KEEP AT THE END OF THE YEAR FOR THREE MONTHS RESERVE YES, AND HOW DO WE SO I'M JUST TRYING TO FIGURE OUT HOW SO HOW DO WE DETERMINE THE 55 MILLION? THAT'S THREE MONTHS OPERATING FROM EXPENSES, FROM REVENUES, OR HOW DO WE DETERMINE THAT $55 MILLION IS WHERE WE WANT TO BE? AND IS THAT ENOUGH? BECAUSE I GUESS WE ENDED THIS YEAR AT $62 MILLION. 
          WE'RE GOING TO HAVE LESS REVENUE. WE'RE BUDGETING LESS REVENUE. SO I'M JUST WONDERING, HOW DO WE DETERMINE THAT WE WANT TO LEAVE 55,887,527 AT THE END OF THE YEAR? BECAUSE IT SAYS THREE MONTHS OPERATING RESERVE YES IT'S A CALCULATION FORMULA DRIVEN THREE MONTHS OPERATING EXPENDITURES IS THAT ENOUGH 90 DAYS SO IF WE DEPENDING ON THE FLOW OF EXPENDITURES IF I EXPLAIN JUST GO UP THE RESERVE WILL GO UP IF OUR EXPENSES GO DOWN, THEN THE RESERVE CALCULATED WILL GO DOWN. THIS GOES BACK TO OUR FINANCIAL POLICY. I KNOW WE HAD A DISCUSSION A FEW MONTHS AGO ABOUT THAT. AND 90, 120, 180, 30, AND SO THAT'S ALWAYS IT. 
          THE BEST PRACTICE IS 90 OR MORE. THAT'S MY UNDERSTANDING. 
          AS I RECALL FROM THE FINANCIAL ADVISORS, IT'S 90 OR MORE. SO WE'RE AT THE 90-DAY MARK. AND ONE THING I THINK YOU'LL COUNT TO REMEMBER, TOO, IS WHEN WE CHANGE OUR POLICY, WE EXCLUDED THE... OTHER ACCOUNT, OTHER FUNDS, I BELIEVE, TRYING TO MAINTAIN THOSE AS WELL. SO WE BROUGHT THE THREE-MONTH RESERVE NUMBER DOWN FROM WHAT WE USED TO BEFORE. 
          SO I'M JUST TRYING TO FIGURE OUT WHAT DO WE MAKE. IT SAYS THREE MONTHS OPERATING RESERVE, WHICH WE SAY IS EXPENSES TO COVER FOR THREE MONTHS. 
          BUT WHEN I LOOK AT OUR TOTAL EXPENSES FOR THE GENERAL FUND, THE I MEAN, IF I'M JUST DOING THE MATH OF DIVIDING 287,984,366 BY 12, AND MULTIPLY THAT BY 3, THAT WOULD BE ABOUT 71 MILLION. SO WE SUBTRACT TRANSFERS FROM THAT AMOUNT, SO IT WILL BE... STEPHANIE COULD SCROLL DOWN A LITTLE BIT. IF YOU LOOK AT THIS OPERATING BUDGET REQUEST UP HERE, IT'S THIS EXPENDITURE AMOUNT, 268,458, THAT YOU WANT TO... 
          TAKE THREE MONTHS OF. OKAY, SO 268, 458. 
          STILL SHOW THAT NETTING $67 MILLION INSTEAD OF $55. AND I'M SORRY, I MISSPOKE, COUNCIL MEMBER SIMPSON. $281. SO YOU SEE A TOTAL EXPENDITURES OF $287 LESS ONE-TIME EXPENDITURES OF $6,755,000 AT THE BOTTOM OF YOUR CASH FLOW. THAT NET NUMBER OF $281 IS WHAT YOU WOULD DIVIDE BY FOUR. 
          GRAYSON, WE DID A PRETTY GOOD EXERCISE WHEN WE PULLED OUT ALL OF THE OTHER. FUNDS THAT CARRY THEIR OWN RESERVE, AND SO FLEET HAS A RESERVE, IT, RISK, ALL HAVE THEIR OWN RESERVES. 
          SO YOU TAKE THE 268 PROPOSED BUDGET, YOU SUBTRACT OFF ALL OF THE TOTAL REQUESTS OR EXPENDITURES FROM THAT 268-4. 
          LET ME LIST THEM. 
          YOU WOULD SUBTRACT OUT FLEET, IT, RISK, HEALTH. IS THERE ANOTHER ONE? BECAUSE THEY ALL CARRY THEIR OWN RESERVE. THEN THAT AMOUNT, THE GENERAL FUND OPERATING, AND THEN YOU CALCULATE THAT AT THREE MONTHS. YES. AND THEN IN FLEET, WE JUST ADDRESSED THAT EARLIER. I MEAN, I WANT TO, I DON'T REMEMBER EXACTLY, BUT I THINK IT HAD A RESERVE OF LIKE $15 MILLION. AND THEN, YOU KNOW, AMENDED A RESERVE FIVE TO SIX, SOMETHING LIKE THAT. THAT'S WHERE SOME OF THOSE TRANSFERS HAPPENED, WHERE WE TRANSFERRED FROM FLEET TO GENERAL FUND PREVIOUS YEAR. IS THAT RIGHT, JUSTIN? YES, SIR. AND THEN AS WE WALK THROUGH THE BUDGET BOOK, YOU GUYS CAN BREAK DOWN THE RESERVE BALANCES, CURRENT YEAR, AND WHAT'S RECOMMENDED FOR NEXT YEAR. OKAY? YEAH, WE CAN GO BACK 
          [01:40:02]
TO OUR NOTES AND BRING BACK TO YOU THE ACTUAL CALCULATION FOR HOW THE $55 MILLION IS DONE HERE. WE CAN WORK ON IT AND BRING IT BACK TO YOU. 
          I MEAN, IF IT'S BASED ON THE 281, WHAT I'M SAYING, IT SHOULD BE $70 MILLION. SO I GUESS IN THESE OTHER DEPARTMENTS, THERE'S $15 MILLION. YEAH, THERE'S SOME EXCLUSIONS WE PULL OUT BECAUSE WE DON'T TRY TO RESERVE IN THE GENERAL FUND AN AMOUNT TO GO TO THE OTHER FUNDS BECAUSE THEY HAVE THEIR OWN RESERVES. SO, YEAH, SO WE CAN WORK ON THE CALCULATION AND BRING IT BACK. 
          SO, JUSTIN, YOU'RE NODDING. 
          YOU GOT IT? YEAH. YOU WANT TO TALK ABOUT IT? OKAY, IF YOU LOOK AT THAT MIDDLE COLUMN, THE PROJECTED ONGOING EXPENSES, THAT 274, $274 MILLION RIGHT THERE, WHAT WE TAKE IS THAT NUMBER WHERE WE THINK WE'RE GOING TO LAND ON ONGOING EXPENDITURES. WE BACK OUT THE TRANSFERS, LIKE MAYOR WAS SAYING, THE IT, FLEET, INSURANCE, HEALTH INSURANCE, THAT. WE BACK OUT THAT NUMBER AND THEN WE DIVIDE. 
          THAT'S WHERE WE GET OUR RESERVES FROM. THAT'S WHERE YOU'RE GETTING THAT $55.8 MILLION NUMBER. OKAY. AND SO THE $274 MINUS HOW MUCH DID YOU SAY? I BELIEVE IT'S $12.8 MILLION IN TRANSFERS. SORRY, LET ME CORRECT THAT FORMULA. 
          IT'S THAT $274.8 MILLION, YOU DIVIDE THAT BY FOUR, THEN YOU BACK OUT THE $12.8 MILLION IN TRANSFERS, AND THAT GETS YOU YOUR RESERVE OF THE $55.8 MILLION. 
          SO WE'RE NOT FOLLOWING YOUR CALCULATION. BUT, I THINK OVERALL, WE UNDERSTAND THE PRINCIPLE OF EACH FUND HAVING ITS OWN RESERVE. AND SO WE BACK OUT THOSE AMOUNTS. AND, CAN YOU LOOK AGAIN AND TELL ME HOW MUCH, SO THE $274,000. YES, SIR, THAT'S YOUR PROJECTED TOTAL ONGOING EXPENDITURES, WHERE WE THINK WE'RE GOING TO LAND, RIGHT THERE IN THAT MIDDLE COLUMN ON YOUR CASH FLOWS. SO WE TAKE THAT NUMBER, WE DIVIDE THAT BY FOUR, AND THEN WE BACK OUT THE TRANSFERS, WHICH TO IT, FLEET, THE INSURANCE, AND THE HEALTH AND THE INSURANCE AND BONDS AND THE HEALTH INSURANCE, WHICH IS. 
          12.8 MILLION. WE BACK THAT OUT AFTER WE MAKE THAT CALCULATION. 
          OKAY. 
          SO I KNOW THAT THAT MAY STILL NOT MATH. I THINK IT DOES, BUT THE ONE QUESTION I HAVE, SO WHERE DOES IT, YOU SAY YOU DIVIDE IT BY FOUR, WHERE DOES THE FOUR COME FROM? WHAT DOES THAT NUMBER REPRESENT? THE QUARTERS. 
          YEAH, THE QUARTERS. OKAY. THAT GETS YOU YOUR 90 DAY. GOT IT, OKAY I GOT IT. THANK YOU. OKAY. 
          AND COUNCIL, TO ANSWER AN EARLIER QUESTION, I KNOW WHAT QUESTION THAT WAS FOR A BREAKDOWN OF TRANSFERS. 
          THAT'S ON PAGE 297, SO I'LL LET YOU TAKE NOTE OF THAT. 297 IS A BREAKDOWN OF TRANSFERS TO THE GENERAL FUND. AND YOU'LL SEE IN THERE THE TRANSFER FUND FROM THE IT SAYS GARAGE, BUT FLEET IS ZERO FROM $6 MILLION. YOU'LL SEE ALL THAT THERE. SO I KNOW THAT WAS A QUESTION TO BRING BACK TO PAGE 297 AND THEN TO 298 AS WELL. 
          ONE OVERALL QUESTION, SO THAT'S 298. FOR CITY MANAGER PROBABLY, WE ARE BACKING OUT $6.7 MILLION FOR ONE-TIME FUNDS, RIGHT? THAT'S OUR CIP PROGRAM. WE'RE SAYING LET'S GO SPEND THAT MONEY OVER THERE FOR ONE-TIME PROJECTS. 
          IN THEORY, IF YOU LEAVE THAT IN THERE AND YOU DON'T PULL ANYTHING OUT FOR CIP, DO YOU HAVE A WORKING BUDGET THAT ALL OF THOSE MONIES CAN THEN BE APPLIED TO OPERATING? SO AS AN EXAMPLE, LET'S SAY WE WERE GIVING A 2% RAISE TO THE ENTIRE ENTITY, AND WE WANTED TO GIVE A 3% RAISE, BUT WE JUST DIDN'T HAVE THE REVENUES TO JUSTIFY THAT. THESE MONIES DOWN HERE AT 6.7, I KNOW THEY'RE ALWAYS SAYING ONE-TIME EXPENDITURES, BUT THOSE ARE ONGOING CALCULATED EXPENDITURES. COULD WE USE THAT MONEY FOR POLICE FIRE OR ANYTHING LIKE THAT? JUST A SIMPLE QUESTION IN LIKE, DO YOU HAVE TO HAVE A ONE-TIME EXPENDITURE DEDUCT, OR COULD A COUNCIL CHOOSE NOT TO PUT MONEY OVER INTO A CIP FUND, YOU KNOW, BECAUSE THAT'S WHERE THAT 6.7 GOES, RIGHT? WELL, THE GENERAL CONSTRUCTION FUND UP ABOVE THE 5.5 IS WHAT'S MOVING FOR CIP-RELATED PROJECTS. WE RUN THE CALCULATION EVERY YEAR OF ONE TIME, SO I DON'T THINK YOU COULD COUNT ON THAT EVERY SINGLE YEAR. 
          NO, I UNDERSTAND THAT. I'M JUST 
          [01:45:01]
SAYING THAT YOU... SO COULD YOU USE IT ONE TIME? YEAH, BUT YOU'D HAVE TO HOPE NEXT YEAR YOU CAN ABSORB IT WITH NEW REVENUE. WELL, SO YOU'RE SAYING MY CIP FUNDING IS UP HERE AT THE 5.5? I THOUGHT THAT WAS JUST GENERAL CONSTRUCTION. I THOUGHT THAT WAS DANFORTH'S ABILITY TO TAKE CARE OF FACILITIES AND DO THINGS THAT COME UP. THAT'S CIP. THAT'S CIP. OKAY, SO HIS FACILITIES BUDGET HAS... 
          HOWEVER MANY MILLION IN IT. 
          OPERATING BUDGET REQUEST. 
          OKAY, SO IN PRINCIPLE, ARE YOU REQUIRED TO DEDUCT THE $6.7 MILLION AND ALLOCATE IT TO A CIP PROJECT? WELL, THAT'S ONLY IF YOU CHOOSE TO, BUT IF YOU WANT TO USE IT FOR RECURRING, YOU JUST HAVE TO HOPE YOU CAN ABSORB IT NEXT YEAR. WELL, I THINK OUR HOPES ARE UP HERE IN HOW WE'VE CONSERVATIVELY BUDGETED OUR REVENUES BECAUSE WE'VE ALREADY BROUGHT OUR REVENUE 3 PLUS MILLION FROM WHAT? I BELIEVE WILL REVENUE. AND THEN IN YOUR EXPENDITURES, YOU HAVE EVERYTHING, YOU KNOW, BASICALLY UNDER BUDGET. THAT'S WHY YOU DEDUCT THE SIX PLUS MILLION. AND THEN, OF COURSE, ACKNOWLEDGING THAT CIP HAS ADDITIONAL FUNDING AVAILABLE THAT WILL TAKE US YEARS TO GET THROUGH. I'M CURIOUS WHY WE WOULD. IS THAT A PRACTICE? IS THAT SOMETHING THAT COUNCIL HAS KIND OF DONE CONSISTENTLY, ALWAYS PULL OUT SIX, SEVEN MILLION? WE'D HAVE TO GO BACK AND CHECK, BUT I BELIEVE SO. 
          OKAY, COUNCIL, I'VE JUST BEEN BRINGING THAT UP AS A CONSIDERATION. I DON'T WANT YOU TO SEE THAT AS A ONE-TIME REVENUE. THAT'S NOT A $6.7 MILLION ONE-TIME REVENUE. 
          THAT'S A DEDUCTION OF AN ONGOING REVENUE SOURCE THAT YOU'RE IDENTIFYING UP HERE IN YOUR PROPERTY TAXES, SALES TAXES, AND OTHER SOURCES OF INCOME. I'M NOT SURE IF IT'S QUITE THAT WAY BECAUSE, REMEMBER, YOUR REVENUE STREAMS IS MADE UP OF OPERATING INCOME BUT ALSO AVAILABLE FUNDS AT THE START OF THE FISCAL YEAR. CORRECT. 
          SO IT DEPENDS ON HOW IT ALL NETS OUT. 
          YEAH, SO I'M JUST TRYING TO KEEP THIS AS SIMPLE AS POSSIBLE. WE ARE COMFORTABLE WITH A 90-DAY RESERVE POLICY. 
          WE THINK THAT'S VERY HEALTHY, AND WE AS A CITY DO THAT. 
          WE'RE THEN TAKING THE ADDITIONAL MONIES OVER THAT 90 DAYS, AND WE'RE LISTING THEM AS A ONE-TIME DEDUCT. AND I'VE ALWAYS WONDERED WHY WE DO THAT. 
          I UNDERSTAND THE BENEFIT IN THE CIP PROGRAM. I DEFINITELY WANT TO PUT THE MONIES INTO, LIKE, SEWER AND WATER, BUT... OR NOT NECESSARILY SEWER AND WATER BUT PROJECTS, BUT THEN IN TAKING THAT MONEY OFF, IT WOULD BE THE SAME EQUATION AS IF WE OVERESTIMATED OUR REVENUES. 
          SO LET ME JUST PRINCIPALLY SAY THESE ARE NOT ONE-TIME MONIES TO BE SPENT. THEY'RE RECOGNIZED IN AN ANNUALIZED REVENUE THAT WE GET TO BUDGET FOR ONE YEAR. 
          YEAH, THERE ARE SOME OTHER COMPONENTS OF THE $6.7 MILLION. 
          WE HAVE THE ANNUAL HOLIDAY OR ANNUAL LEAVE BUYBACK. WE ALSO HAVE HOLIDAY VOUCHERS, AND THEN WE HAVE PARKS E&I. 
          THAT'S INCLUDED IN THE COUNT, SO THERE ARE SOME ACTIVITIES OR PROGRAMS THAT COUNT ON ONE TIME. EXPENDITURE ALLOCATION. 
          THOSE ARE EXPENDITURES THAT GO TO ORGANIZATION AND STAFF. 
          THOSE AREN'T PROJECTS. 
          THE 6.7, DOES IT HAVE THE ABILITY TO BE ALLOCATED TO A PROJECT? OR IS IT ALREADY SPENT ON HOLIDAY VOUCHERS AND BUYBACK? YEAH, WE COUNT ON THE ONE-TIME EXPENDITURES TO FUND THOSE TYPES OF ACTIVITIES. SO IT'S UP TO COUNCIL'S DISCRETION TO AUTHORIZE THE ONE-TIME EXPENDITURES. 
          BASED ON THE BUDGET STATUS OF A PARTICULAR YEAR. OKAY, I HATE TO BE IGNORANT, BUT I DON'T KNOW THAT COUNCIL UNDERSTANDS THAT THEY ARE AUTHORIZING THOSE THROUGH THAT MONEY, THE 6.7. I THOUGHT ALL OF THOSE WERE BUDGETED INTO YOUR GENERAL FUND OPERATING ALREADY. SO YOUR 268 REQUEST, DOES THAT NOT INCLUDE YOUR OVERTIME CONSIDERATIONS, VOUCHERS, BUYBACK AS YOU CALLED IT? IT DOES INCLUDE OVERTIME, BUT SPECIAL ACTIVITIES LIKE ANNUAL LEAVE BUYBACK, AS WELL AS DRP, HOLIDAY VOUCHERS, THINGS LIKE THAT, THAT ARE AT THE DISCRETION OF THE COUNSELOR, ACCOUNTED FOR IN THE ONE TIME. OKAY, IT WOULD BE VERY HELPFUL, I THINK, FOR COUNCIL TO GET THE BREAKDOWN OF THAT 6.7. AND THEN IF WE CAN SEE WHAT THE EXPENDITURES WERE OUT OF THAT PREVIOUS YEAR OR CURRENT YEAR, HOW MUCH OF THAT HAVE WE SPENT? SO WE CAN SEE ARE WE BUDGETING 6.7 AND WE ONLY SPENT $1 MILLION, OR ARE WE BUDGETING 6.7 AND WE SPENT $8? BUT AGAIN, I JUST WANT TO SAY THAT THE 6.7, THAT'S JUST PART OF THE RESERVE CALCULATION. 
          WE'RE USING THAT AS PART OF THAT CALCULATION, 
          [01:50:02]
WHICH IS A THAT'S NOT TALKING ABOUT WHAT YOU CAN SPEND ONE TIME VERSUS ONGOING. WE JUST BACK THAT OUT WHEN IT COMES TO OUR RESERVE CALCULATION COMPONENT. YES, SIR. I UNDERSTAND. I THINK WHAT WE WOULD DO IF WE DIDN'T HAVE THAT DEDUCT AND IF WE DON'T NEED THE MONEY FOR ONE-TIME EXPENDITURES, AND I'M NOT SAYING WE DON'T. 
          WE'RE UNAWARE OF HOW YOU GUYS ARE UTILIZING THAT. 
          SO IF YOU MAKE US AWARE OF IT, WE WOULD END UP WITH A LARGER RESERVE BALANCE. 
          CORRECT. SO THEN TO RUN A BALANCED BUDGET. WE WOULD BE ABLE TO TAKE FROM THAT LARGER RESERVE BALANCE AND PUT IT INTO POTENTIAL OPERATING COSTS. 
          WELL, AGAIN, WE'VE ALREADY DONE THAT FOR YOU BY TAKING IT OUT. AND SO IF WE DIDN'T SUBTRACT THAT, YOU WOULD THEN NEED A HIGHER RESERVE AMOUNT, WHICH MEANS YOU HAVE LEFT TO SPEND. BUT BY DEDUCTING THAT OUT OF THERE, YOU'RE BASICALLY GIVING YOURSELF MORE TO SPEND UP ABOVE AND IN THE SHEET ABOVE. YEAH, MY PRIVATE BUSINESS MIND DOESN'T SEE IT THAT WAY AT ALL. I MEAN, WE'RE APPROPRIATING THE AMOUNT OF MONIES THAT YOU GUYS ARE ASKING FOR. SO YOU BRING IN AN ASK, AND WE SAY, ALL RIGHT, IT'S UP TO US TO FIND THE MONEY FOR THAT. 
          AND SO THERE'S A BALANCE THERE AND A CONSIDERATION OF IN ORDER TO PAY FOR THOSE REQUESTS, DO WE RAISE TAXES OR DO WE LOOK FOR EFFICIENCIES? WHAT I'M SEEING IS THERE COULD BE AN EFFICIENCY IN THAT $6.7 MILLION THAT WE WOULDN'T KNOW ABOUT RIGHT NOW. 
          SO. IF WE HAD THAT REMOVED AND THAT AMOUNT OF MONEY JUST ENDED UP IN THE FUND BALANCE, IT WOULD BE SIMPLER FOR COUNCIL TO SAY, OKAY, WELL, WE'RE COMFORTABLE AT $55 MILLION, STILL BALANCING THE BUDGET, LET'S PAY THE STAFF THE AMOUNT OF MONEY IT TAKES TO PROVIDE THESE HIGH-QUALITY SERVICES. 
          THANK YOU, MS. LOLA. OKAY. 
          ARE THERE ANY QUESTIONS ON THE GENERAL FUND? JUST TO WRAP UP THE GENERAL FUND, AT THE END OF FY2026-2027, WE'RE ESTIMATING THAT WE'LL BE A LITTLE BIT UNDER RESERVE OF MINUS $523,958 MILLION. I MEAN THOUSANDS. 
          $0.5 MILLION IN DEFICIT FOR THE RESERVE FOR THE GENERAL FUND. SO, LOLA, I MEAN, LOOKING HERE AT THE 13, SO YOU'RE PROJECTING WE'RE GOING TO HAVE LESS REVENUE THIS YEAR THAN WE DID LAST YEAR, IS THAT CORRECT? IF YOU LOOK AT THE END OF THE REVENUE? YES, SIR. 
          THE BULK COMES FROM THE TRANSFER FROM OTHER FUNDS THAT WE HAD DISCUSSED A COUPLE MINUTES AGO, THE FLEET TRANSFER. THAT'S NOT HAPPENING FY26-27. A LITTLE BIT DIFFERENCE IN REVENUE. 
          OKAY, THANK YOU. 
          SO WE CAN MOVE ON TO ANOTHER FUND IF WE DON'T HAVE ANY MORE QUESTIONS ON THE GENERAL FUND. 
          THE NEXT FUND WE'RE SHOWING HERE IS THE WATER AND SEWER FUND. WOULD YOU MIND TO GIVE THE PAGE NUMBER, PLEASE? PAGE 32. 
          AND FOR THE WARDENS TO A FUND, WE PROVIDED AN UPDATE THIS MORNING FOR THE LATEST CASH FLOW. 
          SO WE SHOW OUR... OUR ORIGINAL BUDGET FOR 2025-26, REVISED ESTIMATES FOR THE CURRENT YEAR 2025-26, AND WE SHOW US COMING THROUGH OUR REVENUES AT $148.7 MILLION FOR 2025-26. WHEN WE ADD THE AVAILABLE RESOURCES FROM 2024-25, WE END UP WITH $168.3 MILLION ESTIMATED. 
          THROUGH THE END OF FY25-26. 
          AND GOING THROUGH OUR EXPENDITURES, WHICH EXCLUDES DEPRECIATION, WE HAVE TOTAL EXPENDITURES OF $137.8 MILLION, LEADING TO $30.4 MILLION IN AVAILABLE FUNDS FOR THIS CURRENT FISCAL YEAR, 
          [01:55:01]
25-26. AND WE'RE STARTING NEXT YEAR WITH $30.4 MILLION. 
          AVAILABLE FUNDS AND REVENUES FOR 26-27 ARE PROJECTED AT 194.7 MILLION DOLLARS GIVING RISE TO 225.2 MILLION DOLLARS IN AVAILABLE RESOURCES. 
          EXPENDITURES ARE PROJECTED FOR THIS UPCOMING BUDGET YEAR 26-27 AT 195.4 MILLION DOLLARS. 
          AND WE SHOWED THAT AT THE END OF THE YEAR, WE'LL FINISH OFF WITH $24.1 MILLION IN AVAILABLE FUNDS. AND WE HAVE CALCULATED OUR RESERVES FOR WATER AND SEWER, AND WE'RE JUST ABOUT ON TARGET FOR OUR RESERVE REQUIREMENT FOR WATER AND SEWER. 
          SO UNDER THE... DEDUCTED EXPENDITURES FOR CAPITAL THAT WENT FROM 13 MILLION TO 73 MILLION. 
          YES SIR. 
          THAT'S A 60 MILLION DOLLAR DIFFERENCE. THAT'S A TWDB LOAN, 60 MILLION OF IT. 
          AND YOU'LL SEE THAT BOND PROCEEDS LINE AT 60 MILLION THAT'S THE REVENUE OFFSET FOR THAT. OKAY. 
          YEAH, FOR THOSE WHO ARE LISTENING IN WHO AREN'T AWARE OF THIS, THE CITY OF AMARILLO WAS JUST RECENTLY AWARDED, PROBABLY A FEW DAYS AGO, THE $60 MILLION TEXAS WATER DEVELOPMENT BOARD LOW-INTEREST LOAN TOWARDS THE WASTEWATER TREATMENT PLANT PROJECT. 
          WHICH ISN'T A GRANT, SO WE DO HAVE TO MAKE PAYMENTS, SO THAT'S WHY IT HAS TO BE BUILT IN. 
          READY FOR QUESTIONS, OR DID YOU HAVE SOMETHING ELSE TO COVER THERE? THAT'S IT. I'M READY FOR QUESTIONS. OKAY. 
          ORIGINAL BUDGET. AND SO THIS ONE IS THE ONE THAT, YOU KNOW, ENTITY, BUSINESS, ENTERPRISE. 
          SO YOUR REVISED ESTIMATE OF $19 MILLION ON THAT FRONT PAGE OF WHAT WE'RE STARTING WITH, SO THAT INCLUDES OR REFLECTS THE DEDUCT FROM DEPRECIATION. 
          RIGHT. OKAY. SO HOW MUCH WAS THE DEPRECIATION? $17,500? OR WAS IT MORE? LET ME CHECK ON THAT, TOO. 
          AND THEN WHILE YOU'RE CHECKING ON THAT, STAFF, CAN ANYBODY TELL ME WHAT WE DO WITH THAT DEPRECIATION? WHAT DO WE DO WITH THAT $18 MILLION? BECAUSE IT'S DOLLARS THAT ARE IN AN ACCOUNT, SO IT DEFINITELY HAS VALUE. SO WHAT DO WE DO WITH THAT MONEY? SO I'LL STAND CORRECTED. OUR AVAILABLE FUNDS CALCULATION INCLUDES CASH AND INVESTMENTS, APPRECIATION AND DEPRECIATION IN INVESTMENTS, NOT IN ASSETS, THAT YOU'RE REFERRING TO ASSETS TO BE CONVERTED TO CASH, AND THEN WE SUBTRACT LIABILITIES AND ENCUMBRANCES AND SUBTRACT CONSTRUCTION AND PROGRESS BALANCES. SO CORRECTION AND DEPRECIATION IS NOT INCLUDED IN THE AVAILABLE FUND CALCULATION. 
          YEAH, SO YOU JUST SAID YOU DO A THOROUGH MATH PROBLEM, AND YOU CALCULATE SEVERAL DIFFERENT FACTORS TO ARRIVE AT THE 19 MILLION. YES, SIR. OKAY, AND HAVE WE EVER SEEN THAT MATH PROBLEM? OR IS THAT SOMETHING YOU CAN WALK ME THROUGH HERE? I JUST MENTIONED THE COMPONENTS, AND THAT COMES RIGHT FROM OUR ANNUAL AUDIT, THE RECENTLY COMPLETED 24-25 AUDIT. 
          RIGHT. WE HAVE THE DIFFERENT COMPONENTS FROM THE AUDIT FROM THE ASSET SIDE AND THE LIABILITIES AS WELL AS OUR COMMITMENTS BEING SUBTRACTED FROM OUR ASSETS TO ARRIVE AT OUR AVAILABLE RESOURCES THROUGH THE END OF THE AUDIT YEAR. SO THE AUDIT THAT YOU'RE REFERENCING IS 24-25. YES SIR. 
          TO KEEP THE NUMBERS EASY. 25, WE HAD A NET CASH. POSITION OF WHAT PER THE AUDIT? 36 MILLION? 29 MILLION? AND THEN THIS IS GOING TO SHOW THE END OF 26. AND SO I'M CURIOUS IF WE RAN, YOU KNOW, 100 MILLION, 105 MILLION THROUGH THE COMPANY, AND THEN OUR... OUR EXPENDITURES ARE ROUGHLY IN THE 70 MILLION RANGE LIKE WE'VE SEEN THEM. MAYBE 
          [02:00:01]
THEY'RE UP 75. SO THE SIMPLE MATH ON THE ENTERPRISE, WHAT WAS THE NET CASH POSITION IN 26 IS WHAT WE'RE TRYING TO FIGURE OUT. BUT THEN COMING INTO 26, WE REFERENCED OUR NET CASH POSITION AS $7 MILLION. 
          NOW WE'RE SAYING THE REVISED ESTIMATE WOULD BE $19 MILLION. 
          SO IF YOU HAVE THE AUDIT IN FRONT OF YOU OR ONLINE, IT'S ON PAGE 34, THE 2024-25 AUDIT. SO WE TAKE COMPONENTS FROM THE AUDIT, CASH AND CASH EQUIVALENTS, OUR INVESTMENT AMOUNTS, BOTH CURRENT ASSETS AND NON-CURRENT ASSETS, WHICH WILL INCLUDE OUR RESTRICTED CASH AND CASH EQUIVALENTS. AND THEN WE ADD OUR... APPRECIATION OR DEPRECIATION IN INVESTMENTS TO BE MIXED UP WITH THE DEPRECIATION IN ASSETS. AND THEN WE ADD ASSETS TO BE CONVERTED TO CASH, BECAUSE THIS IS A CASH BASIS CALCULATION TO SEE WHERE WE ARE IN TERMS OF RESOURCES AVAILABLE. SO JUST REFERENCING THE PAGES AND LOOKING THROUGH THE NUMBERS THAT WE PUT TOGETHER TO ARRIVE AT. THE RESOURCES WE HAVE AVAILABLE, TALKING THROUGH THAT WITH YOU. OKAY. 
          YEAH, SO WHAT I REMEMBER IN THE 25 AUDIT, WAS THAT WE HAD ROUGHLY AND WE'LL GO LOW, SO THAT WE DON'T SPEAK A NUMBER THAT'S NOT CORRECT BECAUSE THIS IS LESS THAN WHAT HE REFERENCED, BUT $17 MILLION IN A DEPRECIATION LINE ITEM, AND THEN YOU CAN ADD THAT TO YOUR CASH POSITION FROM THE 25 AUDIT. 
          AND SO IF WE ENDED THE YEAR WITH, YOU KNOW, 22 OR 20 MILLION DOLLARS, WE WOULD ADD THAT 17 MILLION BACK IN ON TOP OF THAT. THEN YOUR 19 MILLION HERE IN THIS REVISED TESTAMENT TELLS US WHERE WE BELIEVE WE STARTED THE 25-26 YEAR AND WHERE WE'RE GOING TO END IS THE 24.9 MILLION AT THE BOTTOM. SO YOU BELIEVE WE WILL END UP WITH 24.9 MILLION CARRYING INTO THIS BUDGET THAT WE'RE CONSIDERING HERE TODAY AT THE END OF THIS CURRENT YEAR. THAT'S CORRECT, RIGHT? THAT'S A PROJECTION FOR 26, 27, 24.1 MILLION DOLLARS, YES SIR. WELL NO, THAT'S THE ACTUAL... BEST GUESS THAT YOU HAVE FOR CURRENT YEAR OF 2025-26, THEN WE WOULD CONSIDER 26-27 IN THE PROPOSED BUDGET, RIGHT? SO WE BELIEVE WE'RE GOING TO END UP WITH $25 MILLION IN THE FUND AFTER ALL BUSINESS EXPENDITURES ARE PAID OUT FOR THE YEAR. YES, THAT'S THE PROJECTION FOR THIS YEAR. 
          AND THEN IF I ASSUMED THAT THERE'S 17 MILLION IN... 
          DEDUCTION ONE TIME, WELL I SHOULDN'T SAY ONE TIME, IN A LINE ITEM DEPRECIATION THAT IS NOT A PHYSICAL DEDUCTION. 
          IT'S NOT MATERIAL. IT'S JUST AN ACCOUNTING PRACTICE THAT GOVERNMENT ALLOWS FOR. BUT IN THIS ENTERPRISE SENSE, IT EXTREMELY CONFUSES WHAT WE'RE TRYING TO DO, WHICH IS TO SPEND THE MONEY, IN WATER LINES, SEWER GROWTH, YOU KNOW DEVELOPMENT YOU NAME IT. SO WHAT I WANT TO IS CAN WE GET A NET CASH POSITION, AND IS IT CLOSE TO THE 25 PLUS THE 17 MILLION? SO ROUGHLY 42 MILLION THAT WILL BE SITTING IN THAT ACCOUNT HERE AT THE END OF THIS YEAR. HOW DO WE VERIFY THAT? THAT DEPRECIATION HAS ALREADY BEEN FACTORED, I'M SORRY, HAS ALREADY FACTORED INTO THE CALCULATION. SO IF YOU GO, IF, STEPHANIE, IF YOU COULD SCROLL UP A LITTLE BIT. THANK YOU. SO YOU HAVE OPERATING LESS DEPRECIATION AS THE... TOWARDS THE MIDDLE OF THE SCREEN, THE 76 MILLION ALREADY EXCLUDES IT. 
          SO IF YOU DO IT, YOU'D BE DOING IT TWICE. SO WE'VE ALREADY FACTORED IN DEPRECIATION INTO OUR AVAILABLE CASH CALCULATION. 
          YEAH, YOU SAID IF I FACTORED IT IN, I'D BE DOING IT TWICE. YOU FACTORED IT ONCE. I'M NOT ASKING YOU TO FACTOR IT TWICE. 
          I'M ASKING YOU NOT TO FACTOR IT. SO YOU'VE FACTORED IN DEPRECIATION IN ORDER TO REALIZE THE $76 MILLION NUMBER. I'M SAYING NOT FACTOR IT TWICE, NOT FACTOR IT ONCE, REMOVE IT BECAUSE IT'S NOT A CASH ITEM. I MEAN, UNLESS WE DO SOMETHING WITH THE CASH, WHAT DO WE DO WITH THE AMOUNT OF MONEY THAT IS DEPRECIATED? TO GO BACK ON YOUR QUESTION, THE PREVIOUS QUESTION, IT'S REMOVED BECAUSE IT'S NOT A CASH ITEM, SO THAT'S WHY IT'S NOT. 
          IN HERE, IN THE CALCULATIONS, SO YOU SEE THE EFFECT. THAT'S CORRECT. WE AGREE. 
          [02:05:01]
YEAH, IT'S NOT AN EXPENDITURE. 
          RIGHT. CASH, IT'S AN EXPENDITURE, BUT NOT A CASH. 
          NO, NO, IT'S NOT AN EXPENDITURE. 
          DEPRECIATION IS NOT AN EXPENDITURE, CORRECT? RIGHT. 
          IT'S AN EXPENSE. NO, IT'S NOT AN EXPENSE. DEPRECIATION IS A FACTOR THAT WE REMOVE FROM OUR BOTTOM LINE, BUT IT NEVER COMES OUT OF THE ACCOUNT. NOBODY WRITES A CHECK FOR THAT DEPRECIATION. 
          RIGHT. IT'S JUST AN ACCOUNTING ENTRY, JUST ACCOUNTING FOR THE USE OF ASSETS OVER TIME. OKAY. SO CAN I GET THE NET CASH POSITION, THIS BOTTOM LINE HERE, AND INCLUDE DEPRECIATION BACK INTO THAT, PLEASE? CAN I CLARIFY, MAYOR? YES, MA'AM. IF YOU ADD DEPRECIATION BACK INTO THAT OPERATING EXPENSE, YOUR OPERATING EXPENSE IS GOING TO GO UP, WHICH IS GOING TO MAKE THAT AVAILABLE CASH GO DOWN. I AGREE. YOU CANNOT ADD AN EXPENSE INTO AN EXPENSE ITEM THAT DOESN'T EXIST. SO I'M NOT TELLING YOU TO GO AND PUT IT IN THE EXPENDITURES BECAUSE IT'S NOT ONE. I'M TELLING YOU THAT, LIKE, WE ARE DEPRECIATING IT WHEN WE TAKE OUR NET POSITION AT THE BEGINNING OF THE YEAR. 
          SO WE WOULD REALIZE THAT 17 MILLION BACK AT THE TOP OF THE PAGE, WHICH WILL AFFECT OUR BOTTOM LINE AT THE BOTTOM OF THE PAGE. 
          YEAH, THE AVAILABLE CASH VIEW, LIKE WE SAID EARLIER, CONSIDERS THE RESOURCES THAT WE HAVE. AND BY REMOVING THE PRECISION FROM THIS ACCOUNT WHERE REVIEWING THE RESOURCES THAT WE HAVE IN REALITY AS FAR AS CASH IS CONCERNED, SO THAT'S WHY. 
          WELL, I THINK THAT'S THE WORD I WANT TO KEY IN WITH YOU, MS. LOLA. YOU SAID REALITY, SO I'M LOOKING FOR THE REALITY OF THE FISCAL YEAR IN 25. TO MATCH THE AUDIT. SO THE AUDIT REFLECTED THAT THERE WAS $36 TO $38 MILLION LEFT AT THE END OF THAT FISCAL YEAR, AND WE DIDN'T CARRY THAT FORWARD HERE TO THE 19. WHERE THE 19 IS, THAT'S THE BEGINNING OF THE YEAR, AND THAT'S NOT CORRECT ACCORDING TO THE AUDIT OF 25, BECAUSE THAT FACTORS THE DEPRECIATION IN. YEAH, THERE ARE DIFFERENT PERSPECTIVES. 
          WE'RE LOOKING AT THE STATEMENT OF NET POSITION ON AN ACCRUAL BASIS, AND THE EXERCISE WE'RE DOING HERE IS TRYING TO GET THE CASH RESOURCES AVAILABLE. SO WHAT WE HAVE DONE BY BACKING OUT DEPRECIATION FROM THE EXPENDITURES GIVES US WHAT WE REALLY HAVE IN CASH. BUT THE AUDITS HAS DIFFERENT VIEWS DIFFERENT PERSPECTIVES OF THE SAME THING YOU KNOW ACCRUAL BASIS INCOME STATEMENT NET POSITION STATEMENT VERSUS WHAT WE'RE DOING HERE WHAT RESOURCES DO WE HAVE WHICH WOULD NECESSARILY BE THE SAME AS A VIEW THE AUDIT IS TAKING TO REVIEW THE POSITION OF THE ENTERPRISE SO THERE IS JUST DIFFERENT PERSPECTIVES TO SEE DIFFERENT VIEWS OF THE ENTERPRISE FUND. 
          I APPRECIATE THE STATEMENT. 
          THE PERSPECTIVE I'M INTERESTED IN IS THE NET CASH POSITION THAT MATCHES THE FISCAL YEAR-END AUDIT OF 25 AND THEN WHAT THAT CARRIED INTO IN CURRENT YEAR 26 SO THAT WE CAN PROJECT HOW MUCH WE HAVE IN CASH AS WE WALK INTO THIS BUDGET. 
          WE'LL CIRCLE BACK, MAYOR. 
          SO WE'LL GET TOGETHER AND CIRCLE BACK AND ANALYZE YOUR QUESTION AND SEE HOW WE CAN BEST BRING BACK INFORMATION TO YOU. I CAN GET THE AUDIT BOOK AND GO BACK THROUGH IT. WE CAN REACH OUT TO SCOTT, HAVE SCOTT SPEAK TO IT. MAYBE WE NEED THAT THIRD PARTY TO SPEAK AGAIN TO THAT DEPRECIATION IS NOT A DEDUCTION. IT'S NOT AN ACTUAL REALIZED EXPENDITURE. WHATEVER I NEED TO DO, WHAT I CAN'T DO IS I CAN'T WALK INTO A BUDGET THAT DOESN'T REFLECT A VALID FUND BALANCE RIGHT AND SO EITHER THE MONEY'S IN THE ACCOUNT OR IT'S NOT BUT IT SHOULD BE UH... THE REVENUES ARE THERE ANNUALIZED THE EXPENDITURES WE SEE UH... 
          YOU'RE GONNA WE'RE GONNA START OUR AUDIT HERE IN A MINUTE FOR THIS YEAR I DON'T WANT TO WALK BACK AND APPROVE ANOTHER BUDGET WHERE I THOUGHT I STARTED THE YEAR WITH NINETEEN MILLION AND I'VE GOT AN AUDITOR SAY, NO YOU ACTUALLY STARTED THE YEAR WITH THIRTY EIGHT MILLION, YOU NEVER CORRECTED THAT. AND SO I GET THAT YOU CAN REPRESENT IT THAT WAY ON CENSUS, BUT YOUR ABILITY 
          [02:10:02]
TO HAVE A FUND BALANCE AT THE END OF IT IS BEING COMPROMISED IN THIS ENTERPRISE BECAUSE WE'RE DEPRECIATING THE AMOUNT OFF EVERY YEAR. 
          SO THAT'S MY STATEMENT. I GUESS WE CAN MOVE ON. I DON'T REALLY KNOW HOW WE GO FORWARD. WELL, I THINK THERE'S JUST A MISUNDERSTANDING IN COMMUNICATION HERE, SO LET US REGROUP HERE. AS A TEAM AND ANALYZE WHAT YOU'RE WHAT YOU'RE REQUESTING I DON'T THINK WE CAN GET IT DONE RIGHT HERE IN THIS MOMENT HERE OKAY CAN I ASK A QUESTION WHILE WE'RE ON THIS JUST FOR CLARIFICATION SO WHY DO WE MAKE A JOURNAL ENTRY FOR A DEPRECIATION I MEAN OBVIOUSLY YOU KNOW AS A BUSINESS WE DO IT TO GET THE ASSET DOWN BUT SINCE WE DON'T PAY TAXES WHAT'S THE WHAT'S THE POINT? JUST KEEP OUR ASSET VALUE CORRECT? IT'S THE SAME THING FOR A GOVERNMENT. 
          IT DOESN'T NECESSARILY HAVE ANYTHING TO DO WITH TAXES. 
          THOSE GOVERNMENTAL ACCOUNTING STANDARDS SAY THAT WHEN YOU BUY AN ASSET THAT HAS MAYBE A FIVE-YEAR LIFE, LIKE I BUY A VEHICLE, I HAVE TO PUT THAT CASH UP FRONT. BUT ON MY BOOKS, I'M GOING TO REALIZE THAT EXPENSE, WHICH, AGAIN, NON-CASH EXPENSE OF DEPRECIATION. 
          SO WHEN WE BUY THE VEHICLE, WE CREDIT CASH, WE DEBIT ASSET, AND THEN EVERY YEAR WE CREDIT THAT ASSET ACCUMULATED DEPRECIATION AND WE HIT DEPRECIATION EXPENSE FOR THE PORTION OF THAT ASSET THAT'S USED EACH YEAR. SO IT'S JUST GOVERNMENTAL ACCOUNTING STANDARDS REQUIRE US TO DO THAT AND SO THAT'S HOW WE REPORT IT. 
          OKAY. SO DO WE EVER HAVE AN ASSET BALANCE OF LIKE ALL OF OUR EQUIPMENT AND VEHICLES AND THAT TYPE DEAL? DO WE EVER SHOW THAT? YOU ACTUALLY HAVE A SCHEDULE IN YOUR ACFR THAT SHOWS THAT. 
          OKAY. THANK YOU. I'LL KEY IN ON THAT REAL QUICK AND THEN I'LL... WE'LL MOVE ON. YOU ENTER THAT BECAUSE YOU KNOW THAT THAT PIECE OF EQUIPMENT HAS A FIVE-YEAR LIFE EXPECTANCY, SO YOU DEPRECIATE THAT OFF OF YOUR CASH POSITION, AND THAT'S ALLOWABLE PER GOVERNMENT ACCOUNTING PRACTICES. WHERE DOES THAT MONEY GO? ARE WE? HOLDING IT OFF TO THE SIDE SO THAT WE CAN REPLACE THAT PIECE OF EQUIPMENT. AND IF SO, WHERE ARE WE REFLECTING THAT ON OUR BOOKS? MS. COGGINS, CAN YOU EXPLAIN THAT? IF WE HAD $17 MILLION IN DEPRECIATION, WHICH WE KNOW THROUGH THE AUDIT IN FY25, WHERE DID THAT MONEY GO? SO, AGAIN, IT GOES BACK TO WHILE WE SAY DEPRECIATION IS AN EXPENSE, IT'S A NON-CASH EXPENSE. IT'S LITERALLY JUST A JOURNAL ENTRY. 
          SO THE ONLY TIME YOUR CASH IS TOUCHED IS WHEN YOU BUY THAT ASSET. SO IF YOU BUY A CAR FOR $20,000, YOUR CASH BALANCE GOES DOWN $20,000. IF YOU DEPRECIATE THAT CAR $5,000 A YEAR, IT'S SIMPLY HITTING DEPRECIATION EXPENSE AND IT'S REDUCING THE ASSET. SO IT'S SHOWING YOU HAVE A LOWER VALUE OF THAT ASSET NOW BECAUSE OVER TIME IT'S DEPRECIATING DOWN TO A SALVAGE VALUE, IF YOU WILL, OF ZERO. OKAY. 
          DOES THAT HELP? OH, IT HELPS GREATLY. AND SO MY ORIGINAL QUESTION, THE REVISED ESTIMATE UP HERE OF $19.6 MILLION WALKING INTO THIS NEXT BUDGET THAT WE'RE GOING TO CALCULATE FROM. SO THIS NET STARTING POSITION INCLUDED THE DEPRECIATION DEDUCTION. 
          IF YOU ADDED THE DEPRECIATION BACK IN THERE, YOUR NET CASH POSITION WOULD BE $17 MILLION HIGHER THAN THAT $19 MILLION AS REFLECTED. IS THAT CORRECT, MS. LOLA? NO, SIR. 
          SO THE CALCULATION FOR AVAILABLE FUNDS, WE ADD SPECIFIC ITEMS ON THE BALANCE SHEET AND OUR SCHEDULE OF COMMITMENTS. SO DEPRECIATION IS AN INCOME STATEMENT ITEM THAT IS NOT INCLUDED IN OUR CALCULATIONS. THE ITEMS WE ADD ARE CASH, APPRECIATION AND DIVISION IN INVESTMENTS, WHICH IS DIFFERENT FROM THE ASSETS, AND THEN ASSETS WE CONVERT INTO CASH, AND THEN WE SUBTRACT LIABILITIES AND ENCUMBRANCES, AND CONSTRUCTION IN PROGRESS. 
          SO THERE ARE SPECIFIC ITEMS THAT ARE INCLUDED IN THE AVAILABLE CASH CALCULATION. 
          BECAUSE, LIKE YOU SAID, WE'RE TRYING TO FIND OUT HOW... 
          MUCH RESOURCES WE HAVE AVAILABLE AND WE TAKE THOSE SPECIFIC ITEMS ON THE BALANCE SHEET TO PREDICT IN OUR ESTIMATES WHAT THE RESOURCES ARE AND FROM THE AUDIT REPORT WHAT THE POSITION IS BASED ON THE AUDIT. 
          I THINK THAT'S GREAT. SO LET ME JUST USE THIS AS AN OPPORTUNITY TO GET EDUCATED. SO MY QUESTION WOULD BE HOW DO WE KNOW THAT? YOU JUST TOLD ME THAT YOU... 
          FACTORS SEVERAL DIFFERENT CALCULATIONS AND THAT YOU KNOW HOW YOU ARRIVE AT THAT NUMBER BUT HOW DO WE KNOW THAT SO I ASKED FOR SOME EDUCATION, CAN YOU BREAK THAT DOWN AND GIVE THAT TO ME SO THAT I KNOW YOU DID THAT AND 
          [02:15:02]
THEN LIST EACH ITEM AND THE AMOUNTS SO THAT WE KNOW HOW YOU ARRIVED AT THAT NINETEEN MILLION. YES SIR WE CAN DO THAT OKAY. OKAY, SO THAT TAKES US THROUGH OUR WATER AND SEWER UTILITY. DO WE HAVE ANY MORE QUESTIONS? ON WATER AND SEWER? WE'LL MOVE ON TO THE NEXT FUND, WHICH IS THE AIRPORT FUND, ANOTHER ENTERPRISE FUND. PAGE 40. PAGE 40. 
          SO FOR THE ENTERPRISE FUND, WE HAVE SIMILAR REVENUE PROJECTIONS AS THE BUDGET FROM 2025-26. WE'RE EXPECTING TO HAVE $21.4 MILLION IN REVENUES. AND IF WE ADD THAT TO THE AVAILABLE RESOURCES, WE END UP WITH $25.1 MILLION FOR 2025-26 IN TERMS OF OUR REVENUES. AND THE EXPENDITURES. 
          GOING DOWN THE PAGE, WE HAVE CALCULATED THAT THE EXPENDITURES FOR 25-26 WILL END UP BEING $20.3 MILLION. AND WE SHOWED THAT WE'LL HAVE $4.8 MILLION IN AVAILABLE FUNDS AT THE END OF THE YEAR, AND THEN WE TAKE OFF OUR RESERVES FOR SECOND ANNUAL LEAVE TO GET TO THE ADJUSTED FUND BALANCE. 
          FOR 2026-27, WE ARE BRINGING $4.8 MILLION INTO THE NEW YEAR FROM THE PRIOR YEAR, AND WE ARE PROJECTING OUR REVENUES TO COME UP TO $25.2 MILLION, WHICH GIVES US $30.1 MILLION IN TOTAL AVAILABLE RESOURCES, AND WE PROJECT THAT WE'LL HAVE EXPENDITURES OF $23.5 MILLION, AND WE... SHOWED THE AIRPORT FUND AT THE END OF THE YEAR BEING JUST A LITTLE BIT UNDER RESERVE AT $185,000. 
          APPROXIMATELY DO YOU HAVE ANY QUESTIONS ON THE AIRPORT FUND? SO WE CAN MOVE ON TO THE NEXT FUND, WHICH IS THE DRAINAGE UTILITY FUND. PAGE 44. AND FOR THIS, WE DO HAVE AN INSERT WE PROVIDED THIS MORNING. 
          IF YOU WOULD LOOK AT THAT. 
          SO FOR THE DRAINAGE UTILITY FUND, WE HAVE OUR REVENUES. PROJECTED TO 13.9 MILLION DOLLARS FOR 25-26, A LITTLE BIT LOWER THAN THE BUDGET BUT SOMEWHAT IN LINE WITH THE BUDGET. AND THEN WE HAVE AVAILABLE RESOURCES AT 3.7 MILLION DOLLARS. WE HAVE EXPENDITURES PROJECTED TO 3.5 MILLION DOLLARS BECAUSE WE DO HAVE AN ADJUSTMENT TO CAPITAL PROJECTS. 
          THAT WILL HAPPEN. THAT'S HAPPENING 25-26. THAT'S A DEDUCTION FOR THAT. AND WE SHOW OUR AVAILABLE FUNDS AT JUST A LITTLE BIT OVER $200,000 AS OF FY25-26. 
          AND THEN GOING UP TO THE PROJECTIONS FOR 26-27, WE SHOW OUR TOTAL REVENUES AT $22.6 MILLION WITH THE ADDITIONAL. RESOURCES BROUGHT IN FROM FY25-26 GIVES US $22.8 MILLION IN AVAILABLE RESOURCES, AND WE ARE SHOWING OUR EXPENDITURES AT $21.3 MILLION. WE DO HAVE A CAPITAL ITEM OF $10.4 MILLION, WHICH IS FUNDED BY BOND PROCEEDS OF $9.6 MILLION. DOLLARS AND WE HAVE THE CORRESPONDING PRINCIPAL AND INTEREST BEING BUILT INTO THE CALCULATION TO PAY FOR THE BOND PROCEEDS. 
          [02:20:05]
AND FOR THE DRAINAGE FUND, WE'LL END UP THE YEAR WITH JUST A LITTLE BIT UNDER $400,000, $356,750. ON THE RESERVE. AT THE BOTTOM LINE FOR THE DRAINAGE FUND. 
          DO YOU HAVE ANY QUESTIONS ON THE DRAINAGE UTILITY FUND? SO A QUESTION MIGHT BE MORE FOR HOOPER AND CIP. SO PULLING IN $10 MILLION HERE FOR CAPITAL SHOWS A DEDUCT OF $5.5 MILLION. 
          YOU KNOW, WE BORROWED WHAT, 43. WE SPENT SOME OF THAT, YOU KNOW, DO WE HAVE KIND OF A ROUNDABOUT NUMBER AND ARE YOU JUST PULLING IN TO RECOGNIZE THE THESE ARE NEW PROJECTS. THE 10-POINT, WOULD BE FOR DRAINAGE PROJECTS. COLTER AND FOR OSAGE STREET ARE THOSE STREET PROJECTS. BUT THESE ARE BOND FUNDS THAT ARE ALREADY APPROVED IN THE PREVIOUS RATE, RIGHT? THEY'RE PART OF THE $43 MILLION THAT WE ADVANCED? NO. OH, NO. 
          SO WHEN YOU SAY THESE ARE NEW PROJECTS, YOU DON'T MEAN THESE ARE JUST NEW PROJECTS THAT ARE COMING ON. YOU MEAN THESE ARE NEW PROPOSED PROJECTS? YEAH, THE $40 MILLION THAT YOU'RE REFERRING TO REFERS TO LAWRENCE LAKE AND PLAYA 7, ALL OF THOSE PROJECTS THAT ARE UNDERWAY NOW. THESE ARE TWO NEW PROJECTS THAT WE WERE PROPOSING FOR THIS COMING YEAR. OKAY, SO IN YOU TAKING, TELL ME THE AMOUNT SO I DON'T KEEP SAYING IT WRONG. WHAT WAS THE AMOUNT THAT WE FUNDED IN DRAINAGE WITH THE INCREASE? THE TOTAL AMOUNT I BELIEVE IS 42, BUT WE'VE ONLY ISSUED DEBT FOR 39. IS THAT SOMETHING RIGHT? YEAH, 39 OF THAT'S BEEN ISSUED SO FAR. 
          SO WE STILL HAVE SOME THAT WE HAVEN'T ISSUED FOR THAT. 
          OKAY, SO THAT $42 MILLION THAT WAS ISSUED IN THAT CURRENT RATE, RIGHT, UM, THIS IS 10 MILLION OF ASKS OR REQUESTS IN ADDITION TO. CORRECT. THAT WILL COME AT AN ADDITIONAL RATE. 
          CORRECT. OKAY. AND THEN THE CIP LOOK. AT THE 39 MILLION WORTH OF ALLOCATION, HOW LONG DO YOU THINK IT WILL TAKE YOU TO GET THROUGH THE 39 MILLION? WE'RE PRETTY FAR INTO THOSE PROJECTS NOW AS FAR AS GETTING THEM COMPLETED IS THAT WHAT YOU'RE ASKING YES SIR YEAH LAWRENCE LIKE TWO YEARS THREE YEARS YEAH WE'RE PROBABLY TWO YEARS OUT YEAH COULD BE FINISHED EARLIER THAN THAT WE'VE STARTED ON LAWRENCE LAKE NOW THE FORCE MAIN PROJECT IS UNDERWAY THE SECOND PHASE OF THAT WILL GET UNDERWAY WITHIN THE NEXT FEW MONTHS AT LEAST FOR THE PUMP STATIONS. SO, YEAH, MAYBE LESS THAN TWO YEARS, AS JERRY MENTIONED, FOR THAT. 
          STILL WORKING ON PLIUS 7, BUT PROBABLY THE SAME TIME FRAME FOR THAT. WE'LL MEET THAT TIME FRAME UNDER THE FIVE YEARS THAT WAS ALLOCATED FOR THAT. 
          SO THE ADDITIONAL $10 MILLION IN REQUESTS ARE NEW PROJECTS THAT YOU MAY HAVE MADE SOME OF US AWARE OF THEM, BUT, LIKE, AS AN OVERALL, WE'RE SOMEWHAT UNAWARE ON WHAT THIS MONEY COULD DO. YEAH, SO THESE PROJECTS REALLY YOU'D HAVE TO THINK BACK ON STREET PROJECTS. THIS IS FOR OSAGE STREET, WHICH HAS A DRAINAGE COMPONENT IN IT. 
          COULTER STREET EXPANSION AS WELL HAS A DRAINAGE COMPONENT IN IT, WE CAN'T TAKE THAT AS PART OF THE GENERAL FUND. THIS HAS TO GO TO THE ENTERPRISE FOR THE DRAINAGE PIECES OF BOTH OF THOSE PROJECTS. 
          OKAY, AND SO WILL WE BE GIVEN AN UPDATED REPORT ON THAT HERE LATER IN THIS WEEK. SURE. FOR THOSE CIPS? YES. CAN YOU GIVE US AN OVERALL OF HOW THINGS ARE COMING ON THE $39 MILLION? WE CAN. 
          AND WHAT THE OTHER $3 MILLION IS BEING RESERVED FOR? IT'LL GO TO THAT PROJECT. WE JUST HAVEN'T ISSUED THE DEBT FOR IT YET. 
          BUT WE KNOW THAT EVEN WITH THE $42 OR THE COMPLETE AMOUNT OF THAT, WE DON'T HAVE ENOUGH TO FINISH PROBABLY ALL OF IT. 
          THERE WERE ORIGINALLY LIKE 12 OR 13 PROJECTS THAT WE HAD TO CUT BACK TO ABOUT THREE PROJECTS. SO WE'RE STILL TRYING TO COMPLETELY FUND ALL THREE OF THOSE. OKAY. THANK YOU. 
          BUT I CAN BRING YOU AN UPDATE ON IT LATER IF YOU'D LIKE, FOR SURE. YES, PLEASE. 
          OKAY. 
          ARE THERE ANY MORE QUESTIONS ON THE DRAINAGE UTILITY FUND? WE CAN GO TO THE NEXT FUND, WHICH IS THE FLEET FUND. 
          PAGE 49 IN MY BOOK. 
          FOR THE FLEET FUND, WE HAVE PROJECTED END-OF-YEAR REVENUES AT $33.7 MILLION, AND WE DO START THE YEAR WITH $4.7 MILLION UNDER, SO THAT TAKES DOWN AVAILABLE RESOURCES TO $29 MILLION FOR FY25-26. 
          FOR THE EXPENDITURES, WE SHOW EXPENDITURES AT $24.2 MILLION. WE HAVE A CAPITAL ADJUSTMENT FOR CIPS THAT WERE CLOSED DURING FY25-26 OF $14.7 
          [02:25:03]
MILLION. SO THAT GIVES US $4.7 MILLION IN AVAILABLE FUNDS AT THE END OF 25-26. 
          FOR THE REVENUES FOR 26-27, WE ARE PROJECTING THAT WE'LL HAVE YOU 33.4 MILLION DOLLARS IN TOTAL REVENUES FOR THE UPCOMING YEAR AND ADDING THE FUNDS WE BROUGHT IN FROM 25 26 WILL HAVE 38.1 MILLION DOLLARS AVAILABLE RESOURCES FOR THE 26 27 UM YEAR SO FOR THE EXPENDITURES WE'RE PROJECTING OUR EXPENDITURES TO BE AT 34.4 MILLION DOLLARS AND THAT WOULD LEAVE US WITH AVAILABLE FUNDS AT THE END OF THE YEAR, 26-27, OF $3.7 MILLION. THE FLEET FUND IS GOING TO BE UNDER-RESERVED BY ALMOST $2 MILLION, BASED ON OUR PROJECTIONS FOR 25 AS WELL AS 26-27. DO YOU HAVE ANY QUESTIONS FOR FLEET? YES, MA'AM. SO THE NET POSITION AT THE BEGINNING OF THE YEAR, WE... 
          DEDUCTED AN AMOUNT AND TRANSFERRED IT TO GENERAL FUND IS THAT CORRECT OR IS THAT A NET POSITION WITHOUT THAT TRANSFER SO WE BUDGETED A TRANSFER TO THE GENERAL FUND FOR FLEET BUT OUR REVISED ESTIMATE SHOWS THAT WE WOULD NOT BE ABLE TO DO THAT AND THIS WOULD BE A REASON BECAUSE THE FUND WILL BE IN DEFICITS NO OTHER TRANSFER I UNDERSTAND THAT WE CAN'T BUDGET A TRANSFER HERE IN 26-27 AS REFLECTED IN THE GENERAL FUND THAT WE WENT OVER, BUT IN OUR CURRENT YEAR, WE HAVE TRANSFERRED MONEY TO THE GENERAL FUND IN THE CURRENT YEAR, AND THAT'S HOW WE ENDED UP AT THE 4.7 NEGATIVE POSITION AT THE BEGINNING OF THE YEAR. 
          HOW DID WE END UP WITH, WE HAD A SURPLUS REVENUE, LIKE WE HAD 15 PLUS MILLION DOLLARS IN THERE. WE ONLY NEEDED TO HOLD FIVE, RIGHT? TO BE IN LINE WITH OUR POLICY. SO WE TRANSFERRED MONEY TO THE GENERAL FUND. DID WE TRANSFER MORE THAN WE NEEDED TO, OR DID WE HAVE EXPENDITURES THAT GOT US INTO THE RED AT THE BEGINNING OF THIS YEAR? THE TRANSFER FOR THIS YEAR WOULD HAPPEN AFTER THE START OF THE FISCAL YEAR. SO YOUR AVAILABLE FUNDS BEGINNING OF THE YEAR WOULD HAVE BEEN OCTOBER 1, 2025. YEAH. AND THEN THE BUDGET FOR THIS YEAR HAD THE $6 MILLION BEING TRANSFERRED TO GENERAL FUND. SO THAT WOULD HAPPEN AFTER THAT NUMBER? CORRECT. SO HOW DID WE START FLEET WITH $4.7 MILLION BELOW THIS RIGHT HERE? THE $8 MILLION TRANSFER WOULD BE TO THE GENERAL FUND? NO, THAT'S PROBABLY NOT CORRECT. WHERE DOES THE TRANSFER TO OTHER FUNDS GO? WHERE DID THAT GO? SIX MILLION OF THAT WOULD HAVE BEEN YOUR GENERAL FUND. OKAY. AND THEN THERE'S ANOTHER TWO MILLION, AND WE CAN IDENTIFY THAT FOR YOU. 
          THE CAPITAL OUTLAY, WE HAVE A BREAKDOWN OF THAT FOR CURRENT YEAR, I GUESS. IS THAT RIGHT? BECAUSE I THINK FOR US ON FLEET, IT SURE FEELS LIKE WE ARE UTILIZING SOME DEBT LEVERAGE AND WE'RE BORROWING SOME MONEY IN ORDER TO PAY FOR SOME OF THOSE FLEET SERVICE VEHICLES. THAT CAPITAL OUTLAY, CAN WE GET A BREAKDOWN OF THAT NINE MILLION, OR DO WE KNOW IT ROUGHLY? WE CAN PROVIDE A BREAKDOWN. 
          OKAY. THE $9 MILLION. AND THEN THE $14.7, YOU KNOW, HOW DO WE HAVE A NEGATIVE ON AN EXPENDITURE SIDE? SO THAT'S A CORRECTION FOR THE 24-25 YEAR TO CORRECT THE NEGATIVE BALANCE THAT WE STARTED THE YEAR WITH FOR 25-26. SO SOME CIP PROJECTS WERE TO HAVE BEEN CLOSED DURING 24-25 THAT END UP BEING CLOSED IN 25-26. SO WE'RE CORRECTING FOR THAT AND THAT BROUGHT THE AVAILABLE FUND BALANCE TO THE CORRECT LEVEL BECAUSE THEY SHOULD NOT HAVE BEEN PART OF THE RESOURCES THAT WERE COUNTED OUT FROM THE 24-25 COUNT. 
          OKAY, SO IN TRYING TO KEEP THIS WHERE, YOU KNOW, MONTHS AND MONTHS GO BY AND WE REFER BACK TO IT AND WE HAVE TO WORK OFF OF THIS, 
          [02:30:01]
I DON'T THINK I CAN WORK OFF OF THAT WORKSHEET, RIGHT? SO I HAVE A DEDUCTION IN MY OR I HAVE A NEGATIVE IN MY EXPENDITURE, WHICH HITS MY POSITIVE LINE AT THE BOTTOM SOMEHOW, AND THAT'S BECAUSE YOU CORRECTED CIP PROGRAMS BY DEDUCTING THEM OR REMOVING THEM? RIGHT, SO THE CIPS WERE COUNTED AS NEGATIVES IN THE 24-25 AVAILABLE FUND CALCULATION, BUT THEY WERE NOT, I MEAN, THEY WERE ALREADY CLOSED. THEY WERE CLOSED DURING 25-26, SO THIS IS A WAY TO CORRECT THE BALANCE IN THE CURRENT YEAR. SO HOW WOULD WE DO THAT? THE CIPS HAD ALREADY BEEN APPROVED. 
          APPROPRIATED. THOSE MONIES ARE ALREADY SET OFF THE SIDE. CIPS ARE PUSHED OUT WHETHER YOU COMPLETE THEM OR NOT, OR THEY'RE ON BUDGET OR UNDER BUDGET, RIGHT? HAS NOTHING TO DO WITH CURRENT YEAR. SO AS YOU'VE GONE IN AND GIVEN A LINE ITEM, A JOURNAL ENTRY HERE, LIKE HOW DOES THIS CORRELATE TO CURRENT YEAR BUSINESS FOR FLEET WITH CIP OUTSTANDING? LIKE THAT'S CUMULATIVE. IT CONTINUES ON. IT'S A SEPARATE FUND. SO HOW ARE WE BRINGING THAT FUND IN HERE? SO THE CIPS IN THE AVAILABLE FUND CALCULATION, THEY ARE NEGATIVE IN THE CALCULATION TO ARRIVE AT THE RESOURCES AVAILABLE. SO BECAUSE THEY WERE COUNTED AS NEGATIVE WHILE THEY WERE CLOSED IN THE CURRENT FISCAL YEAR, WE HAD TO MAKE A CORRECTION IN THE CAPITAL ACCOUNT TO REDUCE THE CAPITAL BALANCE. 
          TO ACCOUNT FOR THE NEGATIVE DEDUCTION FROM THE 24-25 COUNT TO BRING IT TO THE TRUE BALANCE. 
          COUNSEL, CAN YOU GUYS MAYBE UNDERSTAND THAT OR HELP ME TO UNDERSTAND IT? DOES ANYBODY HAVE A GRASP ON THIS ONE LINE ITEM, HOW THAT WORKS? I'M UNFAMILIAR WITH DONE THIS BEFORE. 
          MAYBE WE HAVE I DON'T KNOW. 
          FROM TIME TO TIME THAT HAPPENS, BUT THIS YEAR FOR THE 24-25 AUDIT, WE HAD SOME ACCOUNT BALANCES THAT WERE ADDED TO THE, I MEAN, THEY WERE PART OF THE CIP CALCULATION ON THE TABLE. AND THE AUDITOR IS GOING THROUGH THE, WE'RE SPEAKING WITH THE AUDITOR TO WALK THROUGH THAT PROCESS FOR THE NEXT AUDIT TO REFLECT OUR CIP BALANCES, WHICH IS OUR NOTE NUMBER 12. 
          AND WE GET THE INFORMATION FROM NOTE NUMBER 12 TO CALCULATE THE AVAILABLE FUND BALANCES. TWENTY, TWENTY-FOUR MILLION DOLLAR SWING IN THE YEAR, RIGHT? AM I SEEING THAT CORRECTLY? WE BUDGETED AND APPROPRIATED NINE MILLION DOLLARS IN CAPITAL OUTLAY TO GO AND DO THINGS IN FLEET SERVICES WE'VE NOW REMOVED THAT NINE MILLION OUT AND DEDUCTED FOURTEEN POINT EIGHT, SO ROUGHLY TWENTY-FIVE MILLION DOLLARS SWING IN THE CURRENT YEAR FOR FLEET. ON THAT ONE-LINE ITEM. 
          THAT'S WHAT I'M SEEING. AM I SEEING THAT CORRECTLY? SO, SPECIFICALLY, IN TERMS OF WHAT WAS BACKED OUT OF THE $14.2 MILLION, WE BACKED OUT SOME SPECIFIC PROJECTS THAT, AS I MENTIONED, WERE CLOSED IN FISCAL YEAR 25-26. AND BECAUSE OF THE WAY WE CALCULATE THE 24-25 NUMBERS, THE WAY TO CORRECT IT WILL BE TO TAKE IT OFF THE ROLLING BALANCE THAT WE HAVE FOR 25-26. OKAY. MAYBE THAT'S THE POLICY WE SHOULD FOCUS IN ON BECAUSE I THINK WE'RE WORKING UNDER A DIFFERENT POLICY. I UNDERSTAND THAT WE HAVE A CIP COMMITTEE AND THAT THE STAFF HAS BEEN DILIGENT. 
          WE'VE NOW IDENTIFIED CLOSED PROJECTS THAT HAVE REMAINING FUNDS AVAILABLE. WE'RE CAPTURING THOSE AND PULLING THOSE OUT SO THAT THEY CAN COME BACK TO COUNCIL. THAT'S BASICALLY THE PROCEDURE THAT WE'RE TALKING ABOUT. THIS WOULD BE A DIFFERENT POLICY ALTOGETHER. 
          YOU WOULD GO BACK TO THOSE SAME CIP PROGRAMS, AND YOU WOULD BRING THOSE IN AS DEDUCTIONS OFF OF THE CURRENT YEAR STANDING, WHICH WOULD MATERIALLY AFFECT OUR... 
          FUND BALANCE MOVING FORWARD. 
          SO LIKE ESSENTIALLY THOSE MONIES WOULD NEVER BE REALIZED BACK TO BE REAPPROPRIATED. 
          CAN I STEP IN HERE? TO HELP A LITTLE BIT WIT THIS ONE. 
          PART OF THAT NEGATIVE THAT YOU'RE SEEING THERE IS DUE TO SOME REPORTING. SO AS YOU KNOW, WE CONVERTED FROM JD EDWARDS TO WORKDAY AS OUR ENTERPRISE RESOURCE MANAGEMENT SOFTWARE, 
          [02:35:01]
SO OUR FINANCIAL SOFTWARE. AND IN WORKING ON THE YEAR-END ACFR, AND SPECIFICALLY ONE OF THE SCHEDULES IN IT, NOT THE AUDITED FINANCIAL STATEMENTS AT THE BEGINNING, BUT ONE OF THE SCHEDULES IN FOOTNOTE 12 SHOWS WHAT WE HAVE COMMITTED, REMAINING COMMITTED, THAT WE WOULD ANTICIPATE PAYING ON CAPITAL PROJECTS. AND WHEN WE RAN THE REPORTS IN WORKDAY, THEY WERE ACCURATE, BUT THEY REPORTED INFORMATION A LITTLE DIFFERENTLY THAN WE WERE USED TO THAT BEING REPORTED IN J.D. EDWARDS. AND SO AS A RESULT, THERE WERE CERTAIN PROJECTS THAT WE HAD EXPENDED AMOUNTS ON, AND MILLIONS IN THIS CASE OF FLEET, THAT DIDN'T GET REFLECTED ON THAT SCHEDULE. SO WE WERE OVERLY CONSERVATIVE IN SAYING WE STILL HAVE THESE AMOUNTS OUTSTANDING AND COMMITTED. 
          FOR EXAMPLE, OUR FUEL ISLAND PROJECT, WHICH DONNIE HELPED ME OUT HERE, I THINK THAT WAS AROUND FIVE-PLUS MILLION. THAT WE HAD SPENT THAT PROJECT WAS FINALIZED IN 2024-25 BUT THE EXPENDITURES DIDN'T COME THROUGH IN THAT NEW WORKDAY REPORT AND SO THIS ADJUSTMENT IS HELPING ADJUST THAT OUT TO SHOW THAT WE REALLY DIDN'T HAVE THAT MUCH COMMITTED AT THE END OF 24 25. SO THANK YOU STEPHANIE I ONLY LAUGHED BECAUSE I'M I MEAN WHAT I HEARD WAS, IS WE COMPLETED PROJECTS, WE DID THEM, WE PAID FOR THEM THROUGH PREVIOUSLY COMMITTED AMOUNTS THAT HAVE NOTHING TO DO WITH THIS YEAR'S BUDGET. WE'VE GONE INTO THIS CURRENT YEAR'S BUDGET AND WE'VE MATERIALLY DEDUCTED AN AMOUNT BECAUSE WE REMOVED OTHER PROJECTS COMMITTED TO BE DONE. THAT'S WHAT I HEARD. IS THAT WRONG? IF THAT REPORTING HAD BEEN REFLECTED... THE SAME WAY IN WORKDAY AS IT WAS IN JD EDWARDS, YOUR AVAILABLE, YOUR AVAILABLE FUNDS UP THERE AT THE TOP THAT WE BEGAN WITH THAT LOOKS LIKE A NEGATIVE 4.7 ACTUALLY WOULD HAVE BEEN POSITIVE TO THE TUNE OF 10 MILLION. 
          BECAUSE THAT NEGATIVE 14 WOULD HAVE REFLECTED THERE. SO THIS IS JUST TRYING TO CORRECT A TIMING ISSUE THROUGH THAT CAPITAL LINE ON YOUR PROJECTED FOR THIS YEAR. WE'RE REALLY GOING TO GET LOST IF THIS IS THE WAY WE'VE BUILT THE BUDGET, RIGHT? BECAUSE WE'VE DUG INTO ALL THINGS CIP. WE'VE GOT INTERNAL AUDITOR. WE'VE GOT ALL SORTS OF STUFF. SO WHAT WE NEED TO SEE, COUNCIL, AND YOU GUYS CORRECT ME BECAUSE I'M GOING TO BE VERY DIRECT IN THIS. 
          WHAT WE NEED TO SEE IS WHAT ACTUALLY IS FROM, YOU KNOW, CLOSE OF BUSINESS TO OPENING OF BUSINESS, CURRENT BUSINESS IN THAT YEAR WITH NONE OF THE FACTORS IN ON CIP. 
          WE NEED TO KEEP CIP TOTALLY SEPARATE AS WE'VE WORKED THROUGH IT TO IDENTIFY FUNDS BECAUSE THOSE ARE PREVIOUSLY COMMITTED AMOUNTS OF MONEY. 
          AND SO THEY'VE BEEN IDENTIFIED IN ONE-TIME SPEND OR OTHER BORROWED MONIES, BOND MONIES. 
          WE CAN'T KEEP ANY OF THIS STRAIGHT. SO, LIKE, IF WE GO TO DEDUCTING THAT $10 MILLION OFF THE START OF THE BEGINNING OF THE YEAR IN ORDER TO PUT A JOURNAL ENTRY IN FOR $14 MILLION DOWN AT THE BOTTOM, LIKE, NONE OF US CAN TRACK ANY OF THIS. 
          AND NEITHER CAN OUR… TAXPAYER SO LIKE COUNCIL WE NEED DIRECTION I WOULD LIKE TO GO BACK TO REFORMAT THIS WITHOUT THE CONSIDERATION OF THOSE JOURNAL ENTRIES THAT YOU ARE TRYING TO DO BASED ON A CIP ERROR THAT HAS TO DO WITH SOFTWARE. MR. CITY MANAGER HOW DO YOU HOW CAN YOU HELP US HERE BECAUSE LIKE THIS IS DIFFERENT THAN THE WAY WE RUN A BUDGET. 
          I'M NOT FOLLOWING ANYTHING YOU'RE ASKING. I'M NOT FOLLOWING ANYTHING THAT YOU GUYS HAVE EXPLAINED ON THIS. 
          SO IF YOU CAN'T UNDERSTAND WHAT I'M ASKING FOR, IT'S BECAUSE WE DON'T KNOW WHAT WE'VE DONE HERE TO OUR CURRENT BUDGET YEAR. SO HOW DID WE DEDUCT THE CURRENT BUDGET YEAR? WELL, WE HEARD IT'S BECAUSE OF CIP PROJECTS. 
          WE HAD AN ISSUE, RIGHT? SO WHAT I'M SAYING, THE DIRECTION WOULD BE FROM COUNCIL. TO GO AND PUT THAT BACK DO NOT REFLECT THOSE ERRORS OR ISSUES IN THE BUDGET LET'S KEEP THOSE OVER IN CIP SO THAT WE CAN MOVE FORWARD WITH THAT AS A SEPARATE PROJECT AND THAT IS THE WAY THE CITY WORKS RIGHT CIP IS ITS OWN FUND ONCE WE ALLOCATE MONIES TO THAT IT'S NOT COMING OUT OF UH CURRENT YEAR WELL I WAS JUST CLEAR THINGS UP AND MAYBE YOU UNDERSTAND I'M LOST AS WELL. FROM WHAT YOU'RE SAYING AND WHAT I WAS GETTING, I THINK, WAS MONEY WAS ALLOCATED FOR CIP PROJECT, CORRECT? OUT OF THIS FUND. OKAY? THOSE PROJECTS WERE EITHER NOT DONE OR CLOSED OUT. 
          [02:40:03]
RIGHT? IS THAT CORRECT? I WANT TO GO STEP BY STEP. 
          BUT IF THIS MONEY WAS ALLOCATED IN A PRIOR YEAR. AND THEN WE'RE RECAPTURING IT. I JUST WANT TO GO STEP BY STEP. IS THAT WHAT HAPPENS? SO WE ALLOCATED MONEY FOR A PROJECT OR PROJECTS. 
          YEAH, WE'RE GOOD THERE WHEN WE'RE TALKING ABOUT THIS MONEY. ARE WE GOOD THERE? YES. YES. OK, SO THAT MONEY WAS ALLOCATED IN A PRIOR YEAR, EITHER 23, 24 OR 24, 25, WHICHEVER. 
          BUT NOW WHAT THIS JOURNAL ENTRY IS DOING IS BECAUSE THOSE PROJECTS WERE EITHER CLOSED OUT OR PROJECTS WERE CLOSED OUT OR WE DIDN'T GET TO THEM, WE DIDN'T DO THEM. SO WE'RE RECAPTURING THIS MONEY WHICH WOULD REDUCE EXPENSES BECAUSE WE ALREADY HAD A JOURNAL ENTRY. 
          SAID THERE WAS AN EXPENSE PRIOR. 
          NOW WE'RE COMING BACK AND UNDOING THAT WITH THIS JOURNAL ENTRY. IS THAT CORRECT? SO THOSE PROJECTS WERE COMPLETED AT THE END OF 2425. SO THAT FUEL LINE OUTBREAKING. IT'S IN SERVICE. WHAT HAPPENED IS THE REPORTING THAT WENT INTO THAT COMMITMENT FOOTNOTE, WHICH IS WHAT WE REDUCE FROM CASH AND INVESTMENTS TO GET TO YOUR AVAILABLE FUNDS THAT YOU START THE YEAR WITH. 
          THAT WAS OVERSTATED BECAUSE IT DIDN'T PULL IN THOSE EXPENDITURES THAT WE ACTUALLY SPENT. SO WE ALLOCATED TOO MUCH MONEY. WE DIDN'T ALLOCATE TOO MUCH MONEY, AND I KNOW THIS IS HARD. IT LITERALLY WAS A REPORTING ISSUE IN THE WAY THAT IT SHOWED. SO FOR PROJECTS THAT HAD ALREADY BEEN CAPITALIZED ON THE REPORT THAT WAS PULLED TO CREATE THIS FOOTNOTE THAT WAS IN YOUR ANNUAL ACFR, IT DIDN'T SHOW THE EXPENSES IF A PROJECT HAD BEEN CAPITALIZED. 
          IT NETTED IT OUT. AND SO WE ARE ALREADY WORKING WITH THE CONSULTANT TO REDO THAT REPORT TO HAVE SOMETHING SIMILAR TO JD EDWARDS THAT PULLS THE INFORMATION THE WAY THAT WE WERE USED TO SEEING IT SO THAT WE KNOW WE CAN BUILD THIS FOOTNOTE THAT WAY NEXT YEAR. 
          AND I BELIEVE, AND I'M GOING TO LOOK TO GRAYSON OR LOLA OR KATRINA TO CORRECT ME IF I'M WRONG, BUT WE HAVE UPDATED THE FOOTNOTE. 
          WE'VE SENT IT TO CLA. THEY'RE WORKING ON IT, AND WE'LL EITHER SIGN OFF OR REISSUE IT. AND SO WE WOULD BE ABLE TO ADJUST OUR ACTUAL AVAILABLE FUNDS. 
          AT THE BEGINNING OF THE YEAR, ONCE WE GET THAT FOOTNOTE. 
          RIGHT NOW, BECAUSE WE CAN'T, THOSE AVAILABLE FUNDS ARE TIED TO WHAT WAS IN YOUR ACFR, WHICH IS WHY WE'RE ADJUSTING IT. AND SO IT'S NOT THAT WE DIDN'T SPEND A PROJECT THAT WAS ALLOCATED. WE SPENT IT. THE PROJECT WAS DONE. IT WAS CAPITALIZED. IT JUST WASN'T PULLED INTO THAT COMMITMENT FOOTNOTE. 
          AND SO, FOR EXAMPLE, FOR THE FUEL ISLAND, IT SHOWED A BUDGET OF $5 MILLION. 
          AND IT SHOWED ZERO IN EXPENSE. 
          WELL, THAT'S NOT TRUE BECAUSE WE SPENT $5 MILLION ON THAT PROJECT. 
          BUT THAT SCHEDULE AT YEAR END SAID, WAIT A MINUTE, YOU STILL HAVE $5 MILLION YOU NEED TO SPEND. 
          DOES THAT HELP? I KNOW THIS IS A LITTLE. COMPLICATED. I THINK THE MOST IMPORTANT THING IS, ARE THOSE DOLLARS THERE? AND WHAT YOU JUST SAID IS YES, BECAUSE WE'RE GOING TO MAKE A FOOTNOTE THAT CORRECTS THIS, AND THEN OUR AVAILABLE FUND BALANCE IS GOING TO CHANGE. 
          THOSE SHOULD BE IN THE AVAILABLE FUNDS. AND THAT'S WHY WE'RE MAKING THIS ADJUSTMENT RIGHT NOW. IT DOES LOOK ODD BECAUSE IT LOOKS LIKE WE'RE AT A DEFICIT OF AVAILABLE FUNDS OF 4.7 AT THE BEGINNING. ADJUSTING FOR THAT 14.7 MILLION IS WHAT GETS THOSE AVAILABLE FUNDS BACK TO WHAT THEY TRULY WERE AND WHAT THEY WOULD HAVE BEEN HAD THAT FOOTNOTE 12 REFLECTED WHAT WE REALLY HAD REMAINING COMMITTED AT THE END OF SEPTEMBER 30TH, 2025. SO THIS JOURNAL ENTRY IS CORRECTING A CALL IT WHAT YOU WANT GOING FROM IT'S CORRECTING A CONVERSION REPORTING DIFFERENCE THAT WE WERE NOT AWARE OF AND WE BUILT THAT SCHEDULE UP. 
          BUT THE DOLLARS ARE. YES. SO WHEN YOU GET DOWN TO THE BOTTOM OF YOUR AVAILABLE FUNDS OF $4,768,000 THAT WE PLAN OR WE PROJECT TO END THIS YEAR AT, THAT IS ACCURATE. HAD WE NOT MADE THAT ADJUSTMENT, THAT ONE WOULD BE VERY NEGATIVE, BUT THAT'S NOT WHERE WE ARE WITH THOSE AVAILABLE. AND SO OVERALL, IT GETS US TO WHERE WE ARE AND THE AVAILABLE FUNDS WE HAVE. OKAY, BUT THOSE DOLLARS ARE NOT REAL. 
          PER CHECK TO HAVE. THEY'RE NOT REAL. WE'RE NOT PUTTING, WE'RE NOT REDUCING EXPENSES. 
          AND IT'S NOT A JOURNAL ENTRY EITHER. I JUST WANT TO CLARIFY THAT. WE'RE NOT GOING AND BOOKING SOMETHING INTO OUR SYSTEM FOR THIS. IT'S LITERALLY JUST AN ADJUSTMENT ON THIS CASH FLOW. THE PROJECTS WERE REPORTED CORRECTLY IN WORKDAY. THEY WERE CAPITALIZED CORRECTLY. IT WAS JUST A REPORTING ISSUE ON THAT REPORT. I CAN SPEAK FOR JD EDWARDS. WE HAD THAT PROGRAM. GOSH, WE'VE HAD IT SINCE AT LEAST 2002 WHEN I INTERNED HERE. 
          WE HAD TO CREATE CUSTOM REPORTS OVER TIME, AND THAT'S WHAT THEY'RE WORKING WITH WORKDAY RIGHT NOW ON IS CREATING CUSTOM REPORTS. 
          THIS IS LITERALLY JUST A CORRECTION, AN ENTRY MADE TO CORRECT. IT'S JUST AN 
          [02:45:01]
ADJUSTMENT ON THIS CASH FLOW TO CORRECT THE WAY THAT THAT REPORTING CAME THROUGH. THESE ARE NOT REAL DOLLARS. NO. THEY ARE NOT PROJECTS THAT WE HAVE NOT DONE. THEY ARE NOT PROJECTS THAT WE'RE TRYING TO TAKE THAT MONEY AND REALLOCATE SOMEWHERE. 
          WE HAVE SPENT THAT MONEY ON THE PROJECTS THAT WERE PREVIOUSLY APPROVED BY COUNCIL. WE'RE JUST TRYING TO SHOW YOU WHAT YOUR TRUE AVAILABLE FUNDS ARE. THE AVAILABLE FUND LINE IS PULLED FROM THE ACFR. BUT GIVEN NOTE 12 WAS INCORRECT, IN WHICH WE'RE NOW WORKING WITH CLA TO CORRECT, IT SHOWED NEGATIVE 4.7. 
          BUT WE'RE WORKING WITH THEM NOW SO THAT THEY WILL ADJUST NOTE 12 IN THEIR ACFR TO THE POSITIVE 10 OR SO MILLION THAT IT ACTUALLY IS. 
          SO FOR PURPOSES OF TODAY, GIVEN WE ACTUALLY DO HAVE, WE STARTED OFF WITH POSITIVE 10 OR WHATEVER IT WAS, WE MADE AN ADJUSTMENT DOWN THERE ON THE CAPITAL LINE TO HELP US GET TO THE CORRECT AVAILABLE FUNDS END-OF-YEAR ESTIMATE FOR PURPOSES OF BUDGETING TODAY. 
          BUT WHENEVER WE WORK WITH ACFR TO GET THE ACFR CORRECTED, WE'LL BE ABLE TO ADJUST THAT AVAILABLE FUND BALANCE AT THE TOP, REMOVE THAT NEGATIVE NUMBER OF THE CAPITAL, AND STILL END UP AT THE SAME POINT OF $4.7 MILLION AT THE END OF THE REVISED ESTIMATE. 
          THROUGH THE BUDGET PROCESS, WE IDENTIFY THIS AS AN ISSUE, AND WE WISH THAT WE COULD HAVE GOT IT CORRECTED BEFORE TODAY. IT'S JUST WORKING WITH CLA, THEY HAVE TO DO THEIR WORK, GET OUR ANALYSIS, AND THEN COME BACK WITH THAT. I WISH IT WOULD HAVE BEEN ADDRESSED WITHOUT US. WE DIDN'T HAVE TO ASK THIS QUESTION. THAT'S A GLARING ISSUE, BUT I WISH IT WOULD HAVE BEEN BROUGHT TO US AND SAID, HEY, JUST SO YOU ALL KNOW, WHEN YOU SEE THIS... 
          YEAH, IT'S IN THE BUDGET PROCESS WE IDENTIFIED THAT. 
          IT'S SOMETHING THAT, WHETHER IT'S AUDITORS, THE SECOND REVIEWERS OF THE AUDITORS, US, IT DIDN'T GET CAUGHT UNTIL NOW. IT DOESN'T CHANGE THE OVERALL ACFR, IT'S JUST NOTE 12. GRAYSON, ARE THERE ANY OTHER ISSUES SIMILAR TO THIS? I'M NOT SURE. LOLA, STEPHANIE? THERE ARE A FEW FUNDS, YES. THERE ARE SOME ADJUSTMENTS THAT ARE SIMILAR BECAUSE THE INFORMATION FOR THE AVAILABLE FUND CALCULATION CAME FROM NOTE 12 FOR A COUPLE OF FUNDS, SO WE HAD TO MAKE ADJUSTMENTS AND WE'LL SEE THE NEGATIVE CAPITAL. TO REFLECT THE ADJUSTMENTS YOU CORRECTED TO THE ACTUAL LEVEL OF AVAILABLE FUND YOU THOUGHT DRAINAGE WAS ONE OF THOSE WE JUST PASSED THROUGH DRAINAGE THAT WAS ONE AS WELL CAN WE PLEASE POINT THOSE OUT YES I MEAN AS WE GO THROUGH THEM THAT WOULD BE GREAT BEFORE WE OKAY BUT THE REASONS FOR EACH OF THEM THE SAME IS IT BECAUSE WE HAD BECAUSE WE WENT FROM ONE SYSTEM TO ANOTHER THE REPORTING ISSUE THERE WERE SOME CORRECTIONS THAT ARE NEGATIVE CORRECTIONS, BUT IN SOME CASES WE RECEIVED BONDS IN DIFFERENT ACCOUNTS. 
          THEN WE MADE A TRANSFER. WE'RE MAKING A TRANSFER THIS YEAR TO REFLECT THAT IN THE CORRECT ACCOUNT. 
          BUT A LOT OF THE ADJUSTMENTS, THE NEGATIVE ADJUSTMENTS IN THE CAPITAL EXPENDITURES ARE FROM THE REPORTING ISSUE OR CLOSE CIPS. FOR FY25-26. 
          BUT THE ISSUE HAS COME BECAUSE OF HOW ONE SYSTEM... 
          CORRECT, HOW ONE SYSTEM REPORTED THAT INFORMATION OUT TO US VERSUS HOW THE NEW SYSTEM REPORTED IT OUT TO US. OKAY, AND WHAT HAS HAPPENED IS, AS WE'VE GONE THROUGH THIS, AND I GUESS WORKING WITH THE AUDITOR, WE DISCOVERED THESE THINGS. 
          RIGHT, GOING THROUGH THE BUDGET PROCESS. 
          BUT TO GO IN AND, I MEAN... 
          IN MY EXPERIENCE, IT'S NOT UNCOMMON WHEN YOU HAVE TWO SYSTEMS DOING A HALF BILLION DOLLARS WORTH OF BUDGET THAT WHEN YOU'RE TRANSFERRING FROM ONE SYSTEM TO THE OTHER, THERE COULD BE AN ISSUE. AND WHAT WE'RE SAYING HERE IS WE FOUND IT, WE DISCOVERED IT, AND NOW IN ORDER TO MAKE SURE THAT THE BUDGET IS CORRECT AND THESE BALANCE SHEETS ARE CORRECT, WE'VE GOT TO GO IN AND ENTER THAT CORRECTION IN THIS AND THE OTHER AREAS TO BE ABLE TO DO THAT. YES, SIR. OKAY, SO IT IS TO GET THE INFORMATION MORE ACCURATE FOR US. YEAH, THE ULTIMATE GOAL IS TO MAKE SURE THAT YOUR 2627 NUMBERS ARE ACCURATE. SO, YES. 
          SO I THINK I UNDERSTAND KIND OF OVERALL WHAT'S HAPPENING, WHAT'S GOING ON, RIGHT? SO WE WERE OPERATING UNDER A BUDGET THAT WAS NOT ACCURATE. WE'VE COME THROUGH AN ACFR THAT NOW DISPUTED SOME OF THOSE BALANCES AT YEAR END, AND NOW WE'RE PICKING THEM UP HERE WITH THESE ADJUSTMENTS REFLECTED BECAUSE THESE BUDGETS ARE AUDITED. AND IS THAT WHAT HAPPENED? LIKE WE HAD AN ISSUE WITH WORK, J.D. EDWARDS, AND IS IT WORK DAY? AND WORK DAY. 
          YOUR 25, LET ME CLARIFY, YOUR 25-26 BUDGET WAS ACCURATE. 
          Y'ALL ARE WORKING UNDER AN ACCURATE, ADOPTED BUDGET. WHEN WE HAD THE REPORT OF COMMITMENTS IN THAT SCHEDULE, THE REPORTING PULLED THE AMOUNTS DIFFERENTLY. 
          IT DIDN'T PULL THEM 
          [02:50:01]
IN CORRECTLY, BUT IT NETTED SOME OUT ON SOME THINGS THAT WERE ALREADY CAPITALIZED. 
          BUT IT'S THE ACFR... WHEN WE TOOK AND RAN THE AVAILABLE FUNDS AND WHEN LOLA AND HER TEAM PREPARED THE FIRST SET OF AVAILABLE FUNDS, WE ALL GOT TOGETHER AS A TEAM AND LOOKED AT THOSE AND SAID, WAIT A MINUTE, SOME OF THESE LOOK A LITTLE OFF. 
          LET'S START RESEARCHING. AND SO WE STARTED DIGGING INTO THE COMPONENTS BEHIND THAT AND REALIZED THAT IT WAS THAT FOOTNOTE 12 COMMITMENT SCHEDULE WHERE WE WERE SEEING SOME INCONSISTENCIES. AND SO WE DOVE INTO THOSE AND REVIEWED EVERY PROJECT IN EVERY FUND TO IDENTIFY WHAT WAS HAPPENING. 
          BECAUSE YOU'RE IN YOUR IN YOUR CASH FLOW SHEET THERE THAT VERY TOP LEFT NUMBER THE ORIGINAL BUDGET THAT WOULD HAVE BEEN A REVISED ESTIMATE NUMBER AND SO THAT WOULD HAVE BEEN A GUESS AT THE TIME SO WITHIN THE NEXT COLUMN OVER THE PROJECTED YEAR END THE AVAILABLE CASH FUND. THAT'S YOUR ACT FOR NUMBER THAT'S WHAT WE CAN ACTUALLY GO BACK TO THAT ONE SO YEAH YOUR BUDGET YOU WOULD HAVE BEEN ACT WOULD HAVE BEEN ACCURATE BUT AGAIN, THOSE ARE BUDGETED S THOSE ARE ESTIMATE NUMBERS AT THAT TIME. 
          OKAY, SO THE ACFR HAS ASSISTED US AS AN ORGANIZATION OF SEEING WHAT OUR YEAR END WAS BASED ON HOW WE CAPITALIZE SOME OF OUR CIPS. YEAH, ACFRS, THEY ALLOW YOU TO GET YOUR ACCURATE AVAILABLE BALANCE FOR THE YEAR YOU'RE IN RIGHT NOW. WE'RE TALKING ABOUT TODAY WE'RE HERE FOR NEXT YEAR'S BUDGET. ACFRS ALLOWS YOU TO GET THE ACCURATE NUMBER FOR THIS CURRENT YEAR'S STARTING NUMBER. AGAIN, WHEN WE DID THE BUDGET FOR THIS CURRENT YEAR, IT WOULD HAVE BEEN A REVISED ESTIMATE OFF OF WHAT WE THOUGHT WAS GOING TO END UP, WHERE WE'RE GOING TO END UP IN A FEW MONTHS FROM A YEAR AGO. 
          AND THIS HAPPENED IN HOW MANY OTHER PLACES? WE HAVE DRAINAGE, FLEET. FLEET, I BELIEVE STREETS, BUT I'LL CHECK IN A SECOND. 
          CIVIC CENTER, WE HAD AN ADJUSTMENT AND GENERAL CONSTRUCTION. 
          GENERAL OBLIGATION PROJECTS AS WELL. 
          WE HAVE AN ACFR THAT BRINGS US IN TO OUR NET STARTING POSITION. 
          WE NEED THIS TO NOW MATCH THAT FROM THE 25 ACFR. SO WE ADJUST DOWN OUR NET STARTING POSITION AT THE BEGINNING OF THE YEAR OF SAID FUND. THEN WE ADJUST DOWN OUR EXPENDITURES FOR THE YEAR IN ORDER TO NET A POSITIVE AT THE BOTTOM END OF THIS YEAR. TO GET TO THE CORRECT NUMBER BECAUSE IN THE INFORMATION ON THE ACFR FOR THE FOOTNOTES WHICH WE USE FOR THE CALCULATIONS, WE OVERSTATED OUR COMMITMENTS. 
          SO THOSE OVERSTATEMENTS, WE'RE BRINGING THEM DOWN FOR THE PURPOSE OF THE BUDGET, BUT WE'RE WORKING WITH CLA TO CORRECT THAT, REPORTING ON THE FOOTNOTES, TO REFLECT THE PROPER BALANCES. 
          OKAY, SO IF WE STARTED FLEET IN THE RED, IN THE ACTUAL, THE ACTUALS ARE STARTED FLEET IN THE RED. YES, SIR. THEN DURING THIS CURRENT YEAR, WE'VE REMOVED COMMITTED EXPENDITURES IN ORDER TO FINISH IN THE BLACK. YES, SIR. OKAY, AND THEN THESE REMOVALS OF EXPENDITURES, THEY HAVEN'T BEEN SPENT YET. 
          THEY'RE JUST REMOVAL OF EXPENDITURES. REMOVAL OF THE EXCESS EXPENDITURES. WE ACCOUNT, WE REPORTED ON FOR 24, 25, SO WE'RE REMOVING THEM IN 25, 26, AND 24, 25 IS ALREADY OVER. WE MAKE ADJUSTMENTS. TO CLARIFY, BECAUSE I HAVE COUNCILMAN TIPPS SAYING THOSE ARE NOT REAL. 
          EXPENDITURES BUT I HAVE MRS. COGGINS SAYING THEY ARE REAL EXPENDITURES SO LIKE, I WANT TO MAKE SURE THEY'RE NOT REAL DOLLARS. WELL, I'M HEARING THAT THEY ARE. AND LIKE WE DID THE PROJECT. WE SPENT THE FIVE MILLION ON THE SERVICE CENTER. IN A PREVIOUS YEAR, YES. IN A PREVIOUS YEAR, WHICH WOULD GET US TO THE NET NEGATIVE AT THE TIME. 
          BUT THEN IF WE'RE GOING TO TAKE A DEDUCTION OF EXPENDITURES, LIKE A REMOVAL OF AN EXPENDITURE LINE ITEM, WE STILL KEPT OUR $9 MILLION NOMINAL CAPITAL UP TOP, BUT THEN WE'RE COMING BACK DOWN THE 147 SO, WHAT COUNCILMAN TIPPS IS SAYING MAY BE ACCURATE, THAT YOU HAVEN'T SPENT MORE THAN WHAT THIS TOTAL IS GOING TO REALIZE TOO. SO YOUR ACTUALS WOULD HIT THIS BOTTOM LINE. 
          RIGHT. WE. 
          [02:55:02]
FOR FY25-26, WE HAVE THE ACTUAL EXPECTATION OF EXPENDITURES TO THE END OF THE YEAR, BUT THEN WE'RE BACKING OUT WHAT WE OVERSTATED 24-25 BY IN ONE OF OUR REPORTS TO GET TO THE ACTUAL BOTTOM LINE BECAUSE WE'VE PRETTY MUCH... TAKING OUT TOO MUCH EXPENDITURES FOR 24-25, WHICH COSTS US TO BE IN DEFICIT, SO WE'RE IN A PRESENTATION TRYING TO CORRECT THAT EXCESS EXPENDITURE REPORTING BY BACKING OUT THE EXPENDITURES IN 25-26. AND AS YOU MENTIONED, CLA IS WORKING WITH US TO CORRECT OUR FOOTNOTES, AND WHEN WE HAVE THAT CORRECTED, WE'LL... I HAVE THE NUMBER COMING DIRECTLY FROM THE AUDIT REPORT. RIGHT NOW THE AVAILABLE CASH MATCHES THE AUDIT REPORT, WHICH SHOWS THE EXCESS EXPENDITURES BEING SHOWN ON THE FOOTNOTE. IF I CAN SAY IT THIS WAY, I THINK TIMING IS WHAT IT IS. I MEAN, WE'RE HERE, IT'S AUGUST 11TH, AND SO WE CAUGHT THIS ISSUE IN THE FOOTNOTE 12 WHEN WE CAUGHT IT. 
          THE GOAL FOR THE CASH FLOW SHEET IS FOR THAT PROJECTED YEAR END AVAILABLE FUND, VERY TOP NUMBER TO REFLECT WHAT'S IN THE ACFR. WE WANT TO ALWAYS GO SAY, GO BACK TO THE ACFR, YOU CAN FIND THE NUMBER. RIGHT NOW YOU'RE GOING TO SEE A NEGATIVE 4.7. WE'RE WORKING WITH CLA TO CORRECT THAT, TO GET IT BACK TO THE PLUS 10 OR SO. AND WHEN THAT'S DONE, THIS CASH FLOW SHEET CAN BE PULLED OUT AND THE NEW CASH FLOW SHEET PUT IN THERE. BUT FOR PURPOSES OF HELPING YOU PREPARE FOR NEXT YEAR'S BUDGET, WE'VE MADE THE ADJUSTMENT OF NEGATIVE $14.7 MILLION TO GET YOU THE CORRECT AVAILABLE FUNDS IN THE YEAR SO YOU CAN ACTUALLY MAKE BETTER DECISIONS FOR THE 26-27 BUDGET. SO AGAIN, ONCE CLA MAKES THE EDIT, YOU WILL HAVE AN ACFR THAT MATCHES THIS YEAR, THAT MATCHES THE POSITIVE 10. 
          WE CAN THEN TEAR IT OUT, PUT THIS ONE IN THERE WITH A POSITIVE 10, AND WE CAN GET RID OF THE NEGATIVE 14. 
          BUT AS I'M UNDERSTANDING, THAT BOTTOM AVAILABLE FUND, 4.678, WON'T CHANGE. 
          SO THAT WILL BE STILL YOUR STARTING AVAILABLE BALANCE FOR OCTOBER 1ST OF THIS YEAR. 
          BUT WE JUST WANT TO BRING TO YOU GUYS AN ACFR TODAY ON AUGUST 11TH THAT DIDN'T MATCH YOUR ACFR. WHEN THE ACFR IS UPDATED, WE CAN UPDATE THIS SHEET, AND IT WILL STILL MATCH. 
          I DON'T KNOW IF I EXPLAINED THAT BETTER OR NOT THERE, BUT WE JUST WANT TO GET THE COLUMN THERE, PROJECTED YEAR, AND BELOW THAT AVAILABLE FUNDS, THAT'S ALL ESTIMATED NUMBERS, NOT AUDITED NUMBERS, ESTIMATED NUMBERS, BECAUSE WE'RE NOT DONE WITH THE FISCAL YEAR YET. BUT TO MAKE SURE YOUR STARTING POINT FOR NEXT YEAR IS CORRECT, WE HAD TO MAKE THIS ADJUSTMENT HERE TO GET YOU THAT AVAILABLE FUNDS FOR PROPOSED BUDGET. SO WE HAD AN ON-PAPER BALANCE, AND THEN WE HAD A REAL BALANCE. 
          ACFR SHOWED US THE REAL BALANCE. 
          BUT WE HAD IT ON-PAPER BALANCE. 
          WHICH WAS INCORRECT. 
          WE HAD TO MAKE THE ADJUSTMENT TO MAKE THE PAPER BALANCE MATCH THE REAL BALANCE. IT'S THE SCHEDULE AND THE ACFR THAT WAS ACTUALLY OFF. 
          AND NOW, GOOD THING, WE WERE VERY CONSERVATIVE BECAUSE IT SHOWED THAT WE HAD MORE COMMITTED THAN WE REALLY DID AT YEAR END. AND THAT'S WHY THOSE AVAILABLE FUND CALCULATIONS WERE COMING IN LOWER. AND SO WHEN THEY FIX THAT SCHEDULE, WE'LL BE ABLE TO REFLECT THAT HERE, LIKE GRAYSON SAID. YOUR AVAILABLE FUNDS AT THE BEGINNING OF THE YEAR WILL LOOK MORE REASONABLE. 
          YOU WON'T HAVE YOUR LARGE $14 MILLION NEGATIVE ON CAPITAL FOR FLEET, FOR EXAMPLE, AND YOUR ENDING AVAILABLE FUNDS WILL BE THE SAME. SO TO THE MAYOR'S POINT, THAT WILL LOOK MORE LIKE WHAT YOU'RE USED TO SEEING ON A BUDGET CASH FLOW. BUT, YES, IT'S THAT SCHEDULE. 
          ONCE THAT SCHEDULE IS ADJUSTED, THAT AVAILABLE FUNDS WILL BE RECALCULATED OFF OF THE REISSUED SCHEDULE FROM CLA SO THAT IT STILL MATCHES YOUR AUDITED FINANCIAL, AND WE WON'T HAVE TO SHOW THAT. SO IT'S LITERALLY JUST AN ADJUSTMENT FOR NOW TO GIVE YOU YOUR TRUE AVAILABLE FUNDS THAT YOU HAVE. 
          YES, I MEAN, AGAIN, I'VE... 
          WHAT I WISH WE COULD HAVE DONE WAS WE HAD CAUGHT THIS THING A LONG TIME AGO, THEN TODAY, AUGUST 11TH, YOU WOULD NOT HAVE HAD A NEGATIVE 4.7. YOU WOULD HAVE THE CORRECT NUMBER. BUT, AGAIN, TIMING-WISE, WHILE CLA IS STILL DOING THEIR WORK TO ADJUST THIS, WE'RE HAVING TO USE THE ACFR NUMBER AS IT'S PRESENTED RIGHT NOW. SO WE'RE WORKING ON GETTING THAT DONE. 
          OR JUST GIVING US A HEADS-UP ABOUT IT FOR THE FUTURE. SO WHAT'S HAPPENED HERE, THOUGH? LET ME JUST SHOW. SO IN TRANSFER OF INFORMATION OR HOW OUR NEW SYSTEM LOOKED AT IT, IT WAS MAKING A MISTAKE. 
          WE CAUGHT THE MISTAKE. 
          YES. THE AUDITOR DIDN'T CATCH IT. WE CAUGHT IT. IT'S IN THE BUDGET PROCESS. YES. SO WE CAUGHT THE MISTAKE. YES. 
          AND WE'RE FIXING THE MISTAKE. 
          [03:00:01]
CORRECT. AND TO HELP US HAVE GOOD NUMBERS, YOU ENTERED THAT IN THERE SO IT WOULD LOOK ACCURATE. YES. 
          THAT'S PRETTY GOOD. THANK YOU FOR FINDING THE MISTAKE, AND THANK YOU FOR GIVING THIS INFORMATION. 
          AND THANK YOU FOR SUMMARIZING IT BETTER THAN I DID. 
          SO THE ACFR WILL BE AMENDED, IS WHAT I HEARD. THAT'S WHAT WE'RE WORKING WITH WITH CLA RIGHT NOW. SO I KNOW ANIL'S THERE, LOLA, AND KATRINA, WE'VE BEEN WORKING WITH THEM FOR THAT, RIGHT? THE ACFR CURRENTLY DOES NOT REFLECT THE NUMBERS THAT WE KNOW WE SHOULD HAVE REPORTED. THEY WERE REPORTED INCORRECTLY. THAT'S HOW HE RECORDED THEM IN THE ACFR. FOR ONE OF THE REPORTS, FOOTNOTE 12 SPECIFICALLY, BUT THE WHOLE ACFR AS A WHOLE IS... OKAY, BUT THE ACFR WILL BE AMENDED. 
          YES. AND YOU'VE BEEN IN CONTACT WITH CLA. YES. YOU KNEW ABOUT THIS HOWEVER LONG AGO? MAYBE A WEEK AGO. SO TO COUNCILMAN TIPPS' POINT, DEFINITELY WOULD HAVE NEEDED A ONE-ON-ONE WITH MANAGEMENT TO BE APPRISED OF THIS BEFORE WE COME OUT HERE. 
          TO TRY TO MAXIMIZE OUR TIME AND UTILIZE ALL OF Y'ALL. WE'VE GOT TO GET SOMEWHERE HERE. 
          A LOT OF TIME TRYING TO FIGURE THIS OUT ON OUR OWN AND CONFUSED EVERYBODY IN THE ROOM. SO THAT'S ON ME AND I APOLOGIZE. SO I APPRECIATE THAT. IT WOULD GREATLY HELP ME. I THINK IT HELPED COUNSEL. LET'S GET SCOTT KIRCHNECK IN CONTACT WITH EACH OF US TO DISCUSS THIS AND KIND OF HELP US UNDERSTAND OR BRING HIM BACK. SO WE HAVE. A MONTH AND A HALF BEFORE WE FINALIZE THIS BUDGET, I WOULD LOVE TO GET CLARITY, CLARIFICATION FROM HOW THIS HAPPENED WITH SCOTT, WHAT HE STILL HAS TO DO IN ORDER FOR THIS TO BE RIGHT. AND THEN I WOULD LIKE TO NOT SEE THIS MOVING FORWARD. 
          SO WHEN WE VOTE ON THE BUDGET, IT NEEDS TO NOT LOOK LIKE THIS. AND THAT IS WHAT YOU'RE SAYING, RIGHT? IT WON'T LOOK LIKE THIS. YES, THAT IS THE GOAL. IF WE CAN GET THIS WITH CLA DONE FAST ENOUGH, THE GOAL WOULD BE TO HAVE THE AVAILABLE FUND ON PROJECTED YEAR END TO BE A POSITIVE NUMBER INSTEAD OF A NEGATIVE NUMBER. WE'RE HAVING TO ADJUST LATER ON THAT SAME COLUMN THERE. 
          THAT'S THE GOAL. I JUST DON'T KNOW WHAT CLA'S TIMELINE TO DO THAT IS, AND SO WE CAN TRY TO PUSH THAT AND GET THAT DONE SOONER. 
          WELL, I THINK IT'S REAL IMPORTANT IF YOU GUYS HAVE A PLAN IN PLACE OF CORRECTING THIS REPORTING ERROR AND CHANGING THE ACFR PRIOR TO US VOTING THIS LEGAL DOCUMENT IN THAT I DON'T EVEN KNOW, LIKE, DOES THAT READ? LIKE, CAN WE EVEN, COULD WE VOTE ON THIS AND PASS THIS WITH THIS LINE ITEM LIKE IT IS? YES. BECAUSE THE BOTTOM LINE IS CORRECT. SO WHEN HE DOES HIS AUDIT THIS NEXT YEAR, AT LEAST THE BOTTOM LINE WOULD ADD UP, RIGHT? YES. 
          BUT IT WOULD BE VERY CONFUSING, I GUESS, IN THE WAY IN WHICH WE GOT THERE. 
          BUT I WILL TASK NEAL TO PUSH CLA TO GET THIS DONE ASAP. YEAH, AND THEN COUNCIL WOULD LOVE TO HAVE MR. KIRCHNACK COME BACK. IT DOESN'T HAVE TO BE HERE, BUT EVEN ZOOM IN AND GIVE US AN UPDATE ON WHAT HAPPENED AND HOW IT HAPPENED. IS THIS GOOD MOVING FORWARD? DO WE HAVE OUR NUMBERS RIGHT SO THAT HIS NEXT AUDIT, WE'RE NOT BACK HERE WHEN WE'RE RECEIVING IT, TRYING TO REMEMBER WHAT WAS AND WAS NOT REPORTED CORRECTLY? ABSOLUTELY. AND, COUNCIL, I APOLOGIZE. I MEAN, OBVIOUSLY, A LOT OF MY TIME IS SPENT ON GENERAL FUND AND CIP SUBMITTALS. THIS IS ONE THAT I DIDN'T FORECAST FOR THE TEAM TO COME BETTER PREPARED ON, SO THAT'S ON ME. AND SO I DIDN'T GUIDE THEM TOWARDS. 
          LET'S DIVE INTO THIS TO BETTER EXPLAIN IT TO YOU ALL TODAY. SO THAT'S MY FAULT. IF I RECOGNIZED THAT AMONG ALL THESE THINGS HERE, I WOULD HAVE PREPARED THEM FOR THAT. 
          MOVE ON TO THE NEXT FUND. 
          SO THE NEXT FUND IS THE RISK MANAGEMENT FUND, 6300. IT SHOULD BE THE IT FUND. 
          INFORMATION TECHNOLOGY. WHAT PAGE? PAGE 53. SORRY, PAGE 53. 
          SO FOR THE IT FUND, WE HAVE THE ORIGINAL BUDGET AND THE PROJECTED YEAR AND BUDGET FOR 25-26. WE HAVE OUR REVENUE SIMILAR TO OUR BUDGET. WE'RE EXPECTING TO HAVE $10.9 MILLION A YEAR. COUPLED WITH THE AVAILABLE FUNDS WE BROUGHT IN FROM FY 24-25 OF $1.5 MILLION, DOLLARS WE'LL HAVE $12.5 MILLION IN TOTAL AVAILABLE RESOURCES AS OF THE END OF 2025-2026. WE SHOW A BALANCE AT THE END 
          [03:05:06]
OF THE YEAR IN AVAILABLE FUNDS FOR $1.7 MILLION. OUR EXPENDITURES ARE $10.8 MILLION PROJECTED FOR 2025-2026. SO GOING THROUGH FOR... FY26-27 WE'RE BRINGING $1.7 MILLION IN AVAILABLE FUNDS INTO THE YEAR AND WE ARE PROJECTING OUR TOTAL REVENUES AT $12.3 MILLION AND WE WILL HAVE $14 MILLION IN AVAILABLE RESOURCES AT THE END OF 26-27. OUR EXPENDITURES ARE SHOWING AS $11.4 MILLION DOLLARS. GIVING RISE TO AVAILABLE FUNDS AT THE END OF THE YEAR OF $2.6 MILLION BEFORE RESERVES. SO THE IT FUND SHOWS THAT IT WILL BE A LITTLE BIT UNDER RESERVE AT $674,000 AT THE END OF FY26-27. ANY QUESTIONS ON IT? MY QUESTION WOULD BE ON THE EXPENSES. IT LOOKS LIKE WE PAY CONTRACTUAL SERVICES. 
          YOU KNOW, FORECAST IS $5.8 MILLION THIS YEAR. 
          AND THAT'S UP FROM $1.8. CAN YOU TELL ME WHAT THOSE CONTRACTUAL SERVICES ARE? THOSE ARE ALL OUR CONTRACTS WITH DELL AND OTHER PROVIDERS FOR THE TECHNOLOGY AND THE HARDWARE. SO IS THAT ALL SOFTWARE? SOFTWARE AND HARDWARE. BECAUSE WE LEASE EQUIPMENT AS WELL FOR HARDWARE COSTS. OKAY. 
          MISSY THUMB, CORRECT? THANK YOU. 
          OKAY. SO IF THERE ARE NO MORE QUESTIONS ON IT, WE CAN MOVE ON TO THE NEXT FUND, 6300, THE RISK MANAGEMENT FUND. PAGE 58. 
          SO WE SHOW OUR ORIGINAL BUDGET AS WELL AS OUR ESTIMATES FOR 25-26 THROUGH THE END OF THE YEAR. WE STARTED THE YEAR WITH $6.7 MILLION IN AVAILABLE FUNDS FOR THE RISK MANAGEMENT FUND. 
          WE'RE PROJECTING $14 MILLION THROUGH THE END OF THIS CURRENT YEAR, 25-26, GIVING RISE TO $20.8 MILLION IN AVAILABLE RESOURCES. AND EXPENDITURES. THROUGH THE END OF 25-26 WHERE ESTIMATING WE'LL HAVE 13.8 MILLION DOLLARS AND WE'LL END UP WITH 6.9 MILLION DOLLARS IN AVAILABLE FUNDS THROUGH THE END OF THE YEAR. 
          SO GOING THROUGH OUR PROPOSED BUDGET FOR 26-27 WE ARE EXPECTING TO HAVE 13.5 MILLION DOLLARS IN REVENUES COUPLED WITH THE AVAILABLE FUNDS FROM THE BEGINNING OF THE YEAR GIVES US YOU $20.4 MILLION IN AVAILABLE RESOURCES FOR 26-27, AND WE SHOW OUR TOTAL EXPENDITURES AT $15.4 MILLION FOR 26-27, AND OUR RESERVES... ARE GOING TO BE JUST A LITTLE BIT UNDER RESERVE FOR OUR RISK MANAGEMENT FUND AT ABOUT $400,000. 
          QUESTION ON TRANSFERS TO OTHER FUNDS. WHAT CONSTITUTES THAT $3.7 MILLION? SO IT'S BEEN THE PRACTICE TO TRANSFER EXCESS RESOURCES IN THE INTERNAL SERVICE FUNDS TO THE GENERAL FUND. SO WE'RE GOING WITH THE PRACTICE TO TRANSFER $3.7 MILLION TO THE GENERAL FUND FOR THE EXCESS RESERVES WE HAVE IN THE RISK MANAGEMENT FUND FOR THE FY26-27 PROPOSED BUDGET. 
          SO LOOKING AT THE TRANSFERS FROM OTHER FUNDS, THE $5.4 MILLION IN THE GENERAL FUND REVENUES, 3.7 OF THAT IS COMING FROM RISK MANAGEMENT? YES, SIR. 
          OKAY, SO THAT IS ALL GOING TO THE GENERAL FUND JUST AS A TRANSFER? YES, SIR, IT IS. AND THEN RISK MANAGEMENT BILLS OUT EACH DEPARTMENT INDIVIDUALLY AS IT NEEDS TO, LIKE FLEET SERVICES DOES, OR RISK MANAGEMENT DOESN'T DO THAT? LIKE HOW ARE ITS REVENUES REALIZED? SO THE $13.5 MILLION, DOES THAT COME FROM ALL OF THESE OTHER BUDGETS INSIDE 
          [03:10:01]
OF THE GENERAL FUND? I SHOULDN'T SAY ALL, BUT SOME OF THEM THAT UTILIZE RISK MANAGEMENT. 
          YES, THAT IS CORRECT. EACH UTILITY SERVICES PAYS INTO IT. EACH FUND HELPS CONTRIBUTE TOWARD THE OVERALL. IS THERE A REASON THAT WE BILL OUT? I MEAN, IF WE'RE GOING TO REFUND OURSELVES THE $3.7 MILLION BACK INTO THE GENERAL FUND, IS IT BECAUSE THERE'S BILLABLES TO, SAY, SEWER AND WATER? THAT CAN THEN BE PULLED FROM SEWER WATER INTO GENERAL THROUGH THAT 7 OR 3.7? I THINK IT'S GOING TO BE A MIXTURE, AND IT'S JUST BASED ON ESTIMATING WHAT WE THINK CLAIMS WILL BE VERSUS WHAT WE'RE CHARGING OUT, WORKING WITH OUR HEALTH CARE CONSULTANTS TO COME UP WITH THOSE ESTIMATES. BUT THE 3.7 GOES BACK INTO THE GENERAL FUND? YES. IF WE SEE AN EXCESS, YOU DO HAVE THAT CAPABILITY TO SEND THE GENERAL FUND, WHICH COULD HELP WITH ONE TIME. 
          EXPENDITURES. HISTORICALLY, WE'VE ONLY EVER TRANSFERRED BACK TO THE GENERAL FUND. AND SO THAT'S ONE THING. ALL THE FUNDS DO CONTRIBUTE TO THIS, BUT I GUESS PRACTICE HAS BEEN FOR MANY YEARS TO SUPPORT THE GENERAL FUND, WHICH ULTIMATELY SUBSIDIZES TAXES AND SO FORTH. THAT'S BEEN THE PRACTICE. I DON'T THINK THE CITY IN THE PAST HAS DONE THE CALCULATION ON, WELL, THIS MUCH CAN GO BACK TO WATER AND SO THIS MUCH TO FLEET. 
          AND GENERAL FUND IS WHERE MOST OF THE ATTENTION GOES BACK TO. 
          OKAY. SO WE KEEP OUR RESERVES HIGHER ON THIS ONE THAN TYPICAL, RIGHT? I MEAN, WE'RE KEEPING $5 MILLION, TARGET $5.5 MILLION. YEAH, BECAUSE IT ALL COMES BACK TO LAWSUITS AND SETTLEMENTS AND SO FORTH. AND SO WORKING WITH OUR CONSULTANTS, THEY JUST ADVISE A CERTAIN DOLLAR AMOUNT TO HAVE IN THERE. YOU'VE GOT LIKE AN ACTUARY, LIKE SOME ACTUARIAL DATA THAT THESE CONSULTANTS UTILIZE TO HELP US WITH ALL THIS, AND THEY'RE PRETTY ACCURATE. I'M NOT SURE IF WE HAVE THAT OR NOT. DO WE HAVE A GOOD ACTUARY THAT ADVISES ANYONE ON THESE? OKAY. ALL RIGHT. THANK YOU, MS. LOLA. 
          OKAY. SO, EXCUSE ME. WE CAN GO TO THE NEXT FUND, WHICH IS, I BELIEVE, THE HEALTH INSURANCE FUND. 
          PAGE 62. SO WE STARTED THE HEALTH INSURANCE FUND WITH $10.2 MILLION IN AVAILABLE FUNDS AT... THE BEGINNING OF 25-26. WE ALSO SHOW OUR REVENUES ON TRACK AS BUDGETED A BIT MORE THAN BUDGETED. THAT'S $6.2 MILLION IN REVENUES, GIVING RISE TO $46.4 MILLION IN AVAILABLE RESOURCES FOR FY25-26. EXPENDITURES, WE SHOWED EXPENDITURES AT $37.7 MILLION, AND WE HAVE $8.6 MILLION IN AVAILABLE FUNDS AT THE END OF THE YEAR, 25-26. 
          FOR 26-27, WE HAVE OUR AVAILABLE FUNDS COMING THROUGH FROM THE PRIOR YEAR, AND THEN WE HAVE OUR REVENUES COMING UP AT $36.2 MILLION. ADDED TO THE AVAILABLE FUNDS WE STARTED THE YEAR WITH, WE HAVE $44.8 MILLION IN AVAILABLE RESOURCES. AND WE HAVE OUR TOTAL EXPENDITURES FOR 26-27 AT $39.1 MILLION. 
          AND WE END THE YEAR AS PROJECTED WITH $5.7 MILLION IN AVAILABLE FUNDS. AND WE'RE JUST A LITTLE BIT UNDER RESERVE AT ABOUT $240,000. 
          ANY QUESTIONS ON THE HEALTH INSURANCE FUND? SO THE QUESTION ON THAT WOULD BE THE ACTUARIAL, AGAIN, THAT IS GETTING YOU TO THE 34-2. DO WE HAVE AN ACTUARY WHO'S ADVISING US OF THAT, OR ARE WE JUST LOOKING AT OUR ACTUALS OF $30,700,000 BEING CONSERVATIVE AND PLUGGING THE 34-2 IN? BECAUSE, I MEAN, WE'VE RAN PROJECTED YEAR-END. 
          WE THOUGHT WE WERE GOING TO END UP WITH $8 MILLION. WE ENDED UP WITH $2, SO $2 MILLION POSITIVE. 
          AND THEN WE'VE ALSO PUSHED OUR EXISTING. ARE WE SEEING ADDITIONAL CLAIMS? DO WE HAVE SOME SORT OF DATA THAT'S DRIVING THAT ADDITIONAL $4 MILLION? SO WE DO WORK WITH OUR CONSULTANTS ON CLAIMS, ALSO WITH THE PROVIDER, TO PROJECT OUR CLAIMS FOR THE YEAR AND PREDICT CLAIMS FOR THE NEXT YEAR BASED ON THE EXPERIENCE FOR THE HEALTH INSURANCE. AND OF COURSE THE HEALTHCARE COSTS KEEP GOING UP EVERY YEAR, SO WE DO HAVE THAT FACTORED INTO OUR ESTIMATES AS WELL. SO WE'VE HAD A YOUNG MAN WHO'S DEFINITELY A SALESMAN HITTING US UP ON THE CHAMP PLAN, AND IT'S A BOLT-ON PACKAGE, AND IT KIND OF OFFLOADS SOME OF THE SMALLER FEES THAT CAN BE 
          [03:15:02]
DONE. AND HE SAYS, WELL, YOU COULD REALIZE MORE MONEY IN YOUR EMPLOYEES. POCKET BASED ON THE WAY IN WHICH YOU BILL THEM FOR THE CONTRIBUTION BUT THEN ALSO YOU SHOULD REALIZE LIKE A MILLION DOLLARS AND HEALTH CARE COSTS THEY'RE GONNA BE MITIGATED AT A COST-EFFECTIVE LEVEL THEY PICK THAT UP ON THEIR SIDE SO HATE TO SAY AFLAC BECAUSE THAT'S NOT WHO IT IS BUT IT IS THAT'S JUST THE BEST MARKETED COMPANY OUT THERE SO IF WE GET TO THE END OF OUR BUDGET HERE AND WE SAY, YOU KNOW, WE NEED A MILLION DOLLARS TO DO EVERYTHING WE REALLY WANT TO GET DONE HERE. 
          YOU'RE TRANSFERRING TWO OTHER FUNDS, $500,000 OUT OF HERE. I'M ASSUMING THAT GOES TO THE GENERAL FUND? YES, SIR. 
          SO IF WE WERE TO SAY, YOU KNOW, WE'RE A LITTLE LESS RISK-ADVERSE THAN Y'ALL, WE MAY BE A LITTLE MORE AGGRESSIVE, WE WANT TO BUDGET $33 MILLION IN THERE. OR IF WE HAD THE POTENTIAL OF ANOTHER BOLT-ON PACKAGE THAT COULD HELP US OFFLOAD THAT ADDITIONAL RISK SO THAT WE DON'T HAVE TO WORRY ABOUT, YOU KNOW, THAT PERCENTAGE OF THE CLAIMS GOING UP. WE COULD TRANSFER $1.5 MILLION TO THE GENERAL FUND. IS THAT CORRECT? SURE, YEAH. THE COUNCIL, YEAH, YOU COULD PROVIDE THAT KIND OF DIRECTION. OKAY. YEAH, THAT'S REALLY GOOD TO KNOW BECAUSE I KNOW WE'LL GET TO THE END OF FRIDAY AND WE'LL BE LOOKING AT, LIKE, OKAY, HERE'S THE ASK FOR EVERYTHING. EVERYTHING'S A PRIORITY, BUT THEN WE'RE LIMITED. YOU KNOW, SO THIS WOULD BE ONE AREA THAT YOU COULD ADVISE IF YOU HAVE SOME HARD ACTUARIAL DATA FROM A THIRD PARTY THAT IS GIVING US THIS $34 MILLION, I THINK WE WOULD RECONSIDER THAT BECAUSE WE'D HAVE AN EXPERT. 
          IF WE DON'T HAVE HARD DATA ON IT, THEN WE MAY BE WAY MORE CONSERVATIVE. AND I WOULD LIKE TO, WHEN WE COME BACK THROUGH LATER POINTS IN THE BUDGET, TO LOOK AT THAT ADDITIONAL PLAN AND SEE MAYBE IT'S NOT AS GOOD AS IT SOUNDS, YOU KNOW, GOOD SALESMEN OR… SALESMAN FOR A REASON AND WE DON'T NEED TO TRY TO INCORPORATE THAT BUT UH... JUST THESE TWO NUMBERS JUMP OFF THE PAGE A LITTLE BIT YES WE ARE WE CAN WE CAN UH... 
          WE CAN REGROUP HERE AND TALK ABOUT HOW THE THIRTY FOUR MILLION DOLLARS CALCULATED WE CAN BRING IT BACK TO YOU ALL AND I KNOW THAT HR HAS TALK TO THE UH... THE CHAMP PLAN INDIVIDUALS SO WE COULD IF YOU WANT TO WE CAN DISCUSS THAT ON THURSDAY OR FRIDAY AS WELL ALSO THAT'S ONE POSSIBLE CARRIER OF MANY AND SO. WE'D HAVE TO PROCURE IT, WHICH TAKES TIME, BUT WE COULD TALK ABOUT THAT IF YOU'D LIKE TO. 
          OKAY, THANK YOU. 
          SO I BELIEVE THAT ALL THE FUNDS, WE ALSO HAVE THE 4,000 SERIES FUNDS. 
          BUT THE CASH FLOWS FOR THE MAJOR FUNDS, WE'VE CONCLUDED THAT. 
          MR. PAFF, I GUESS IF WE'RE THROUGH THOSE MAJOR FUNDS, WE PROBABLY DON'T HAVE ANYONE WHO NEEDS TO GO THROUGH THESE OTHER FUNDS. 
          COUNSEL, YOU SEE ON PAGE 65, 66, YOU HAVE SOME OTHER FUNDS. 
          ANY REASON TO DIVE INTO ANY OF THOSE, OR ARE YOU COMFORTABLE? ALL THE WAY TO PAGE, WHAT, 70, 72? OTHER THAN JUST PAYING A COMPLIMENT TO THE PEOPLE THAT RUN OUR WOMAN'S AND INFANTS, CHILDREN'S PROGRAM BACK THERE AND DO SUCH A GREAT JOB. AND THEN SOME OF OUR PUBLIC HEALTH, YOU KNOW. MOST OF THESE FUNDS ARE YOUR GRANT SUPPORTED FUNDS. 
          YEAH, WE LOVE WHAT YOU GUYS ARE DOING. WE THINK EVERYTHING'S GOING IN A GREAT DIRECTION. I HOPE YOU HEAR FROM COUNCIL IF WE DON'T STOP AND DIVE IN. 
          I THINK BECAUSE OF COMFORT, AND WE APPRECIATE YOUR SERVICE, NOT BECAUSE YOU'RE NOT BEING THOUGHT ABOUT. 
          SO, COUNSEL, WITH THAT, I THINK WE ONLY HAVE ABOUT 14 MINUTES LEFT BEFORE 12 O'CLOCK. 
          I THINK I'M GOING TO TURN THIS OVER TO ANDREW HERE TO KIND OF GIVE YOU GUYS SOME OVERVIEW HIGHLIGHTS OF THURSDAY. AND BECAUSE NOW WE'RE TRANSITIONING TO BUDGET HIGHLIGHTS, AND NOW WE'VE GOT CASH FLOWS DONE, SO I THINK OUR NEXT SLIDE WILL BE BUDGET HIGHLIGHTS. ONE THING I WOULD, I MEAN, IF WE'RE GOING TO GO INTO 14 MINUTES, I KNOW ONE OF THE GOALS TODAY IS TO PROVIDE SOME FEEDBACK TO, AND I'VE GOT A FEW THINGS THAT ARE ON MY MIND THAT I'D LIKE TO SHARE WITH COUNCIL AND STAFF. SO AT A TIME WHERE APPROPRIATE, IF WE NEED TO GO THROUGH THIS, I'D JUST LIKE TO BE ABLE TO HAVE A MINUTE OR SO TO GO OVER SOME OF THOSE THOUGHTS ON THE BUDGET. THAT MAY BE MORE APPROPRIATE THAN THIS. OR I CAN COVER JUST A FEW MINUTES. 
          [03:20:02]
THIS IS JUST KIND OF A PREVIEW OF WHAT WE'LL COVER ON THURSDAY. THE WAY THE BUDGET WAS BUILT, WE'RE SEEING AROUND AN EXCESS OF $6.2 MILLION TO ALLOCATE. THAT'S WHAT THAT FIRST LOGO ON THE SLIDE IS, ADDITIONAL RESOURCES OR POTENTIAL RAISES OR ADDITIONAL SERVICES. WHAT WE PROVIDED ON FRIDAY OF ADDITIONAL INFORMATION, YOU'VE GOT SUPPLEMENTAL REQUESTS IN THERE. YOU'VE GOT A PAGE ON RAISE SCENARIOS. 
          BASICALLY, THAT'S THE BUCKET OF MONEY OR WORKING BUDGET MONEY FOR COUNCIL TO HELP US. 
          DIRECT WHERE THOSE GET PLACED, SO THAT'S WHERE WE'LL TAKE A DEEPER DIVE ON THURSDAY. ALSO BUILT IN AS RECOMMENDATIONS, WE HAVE SOME FUNDS OR SOME ALLOCATIONS THAT WE HAD TO BUILD IN THE FUND TO COVER, JUST BUILT IN RIGHT FROM THE START. 
          THAT'S POLICE AND FIRE STEP INCREASES AROUND $1.1 MILLION. 
          WE HAD TO RECLASS SOME FIREFIGHTERS FOR FIRE STATION 14. THAT'S A LITTLE OVER $200,000, ALMOST $250,000. SOFTWARE COSTS INCREASED FOR COMPUTERS, $430,000. IT CHARGES ACROSS THE BOARD OF INCREASES 1.4 MILLION, FLEET CHARGES OF 1.7, AND THEN 624,000 OF INSURANCE AND BONDS. SO THAT EQUATED TO ABOUT 5.5 MILLION OF NEW EXPENSES AND COSTS THAT WE HAD TO GO AHEAD AND BUILD IN. 
          BUT THAT'S WHAT, AFTER THAT, IS THE EXCESS OF 6.2 THAT WE WOULD LIKE DIRECTION ON. 
          ALSO, WE WILL COVER CIP. THAT WAS ALSO PROVIDED TO YOU. IT'S NOT REALLY FINALIZED AT THIS POINT UNTIL WE... HAVE DISCUSSIONS WITH Y'ALL AND RECOMMENDATIONS, BUT AS YOU GO THROUGH, YOU'LL SEE SOME DEBT-FUNDED PROPOSALS. 
          SOME YOU'RE AWARE OF. IT'S GOING TO BE THE FIRE TRUCK APPARATUS AND NEXT CYCLE OF THAT. SOME IT'S THE STREET FUNDING. SOME IT'S THE TWDB LOAN. BUT THEN THERE'S OTHER CONSIDERATIONS OF OSAGE AND COULTER STREET AND DRAINAGE IMPROVEMENTS FOR THE RECONSTRUCTION OF THOSE ROADS. 
          AND THEN AS YOU LOOK THROUGH IT, THERE'S OPPORTUNITIES TO TALK ABOUT WHETHER THERE'S OTHER... 
          RESOURCES YOU WANT TO PUT ON THE DEBT SIDE OF THE TAX RATE AS FAR AS PUBLIC SAFETY OR FIRE DEPARTMENT NEEDS THAT ARE IN THE MULTI-MILLION DOLLAR RANGE. GENERAL FINAL LOAN, WE HAD ABOUT 19 19 MILLION IN SUPPLEMENTAL REQUESTS AND THEN OVER 70 MILLION IN CIP REQUESTS JUST SPIT BALLING NUMBERS OF WHAT THOSE REQUESTS LOOK LIKE AND THEN OF COURSE THE LAST POINT KIND OF TOUCHES ON THE EXPENSES THAT WE BUILT IN IT'S JUST THOSE RISING COSTS, MATERIAL SUPPLIES, SOFTWARE. YOU'LL SEE A LOT OF THAT ALSO REFERENCED IN THE SUPPLEMENTALS. IT DOESN'T MEAN WE'RE GOING TO HAVE THE CAPACITY TO BUILD IT, BUT THOSE ARE JUST PRESSURES TO THOSE BUDGETS ON THE VARIOUS LINE ITEMS. THAT'S JUST KIND OF A BRIEF OVERVIEW, AND THEN ON THURSDAY WE'LL DIVE IN A LITTLE BIT DEEPER INTO SOME OF THOSE NUMBERS. 
          SO WITH THIS, I THINK IF COUNCIL, AGAIN, WE HAVE ABOUT TEN MINUTES, THAT THE COUNCIL WOULD LIKE TO, AS COUNCILOR SIMPSON SAID, GIVE A FEW THOUGHTS THAT YOU GUYS HAVE AS YOU'RE. LOOK AT THE BUDGET OVERALL. OR ANYTHING TO BRING BACK ON THURSDAY THAT YOU HAVEN'T BROUGHT UP ALREADY THAT WE CAN BRING BACK. 
          WELL, I JUST WANTED TO SHARE A COUPLE OF THOUGHTS, AND I GUESS IT WOULD GO TO THE REASON WHY I WAS KIND OF ASKING SOME OF THE QUESTIONS BEFORE. 
          BUT WHAT I WOULD LIKE TO SEE US TO CONSIDER IN THIS BUDGET IS SOME PROPERTY TAX RELIEF FOR OUR TAXPAYERS. 
          AS YOU LOOK AT THE BUDGET, YOU KNOW, AND AGAIN, IT'S TWO PARTS. IT'S ONE PAYS FOR DAY-TO-DAY OPERATIONS AND THE OTHER PAYS FOR DEBT. AND, OF COURSE, OUR DEBT PROPERTY TAX IS ALREADY SET. WE CAN'T CHANGE THAT. WE'VE ALREADY ISSUED DEBT, THEN THAT'S GOING TO HAVE TO BE PAID. SO ANY TAX RELIEF THAT WE GET IS GOING TO HAVE TO BE ON THE DAY-TO-DAY OPERATIONS SIDE. SO, AGAIN, THE NUMBERS THAT I GOT, AND I'VE BEEN PART OF THIS, AND ON THE DEBT SIDE, SO WHEN WE LOOK AT THE M&O SIDE, OUR SPENDING HAS GONE UP ABOUT 4% A YEAR, 3%. WE'VE STAYED WITHIN THAT. 
          BUT WHEN WE DO LOOK AT THE DEBT SIDE, AND ALL THOSE PROJECTS I SUPPORTED, AND I WOULD GO THROUGH THEM AGAIN. THEY'RE PART OF WHAT WE NEEDED TO HAVE, BUT WE HAVE INCREASED OUR SPENDING ON THE DEBT SIDE A PRETTY GOOD BIT. AND PUT TOGETHER, THOSE TWO, WE'VE SEEN AN INCREASE OVER THE LAST FIVE YEARS IN TAXES AT A SIGNIFICANT RATE. 
          I THINK THE POINT THAT WE'RE AT NOW, WHAT I WOULD LIKE FOR US TO CONSIDER, OUR RESIDENTS ARE PAYING MORE FOR GROCERIES, INSURANCE, UTILITIES, AND JUST ABOUT EVERYTHING ELSE. I THINK WE SHOULD DO WHAT WE CAN TO AVOID ADDING TO THAT BURDEN, AND I THINK WE'VE GOT SOME PATHS TO BE ABLE TO DO THAT. 
          FIRST, I THINK ADOPTING THE NO NEW REVENUE TAX RATE IS SOMETHING THAT I'D WANT US TO CONSIDER. BUT AGAIN, IF WE'RE GOING TO PROVIDE FURTHER RELIEF TO THAT, TO TAXPAYERS, IT'S GOT TO COME IN OTHER FORMS TO BE ABLE TO LOOK AT THE M&O TAX RATE TO TAKE MONEY OUT OF THAT. TWO 
          [03:25:01]
THINGS I WOULD LIKE FOR US TO THINK ABOUT. WE'VE GOT MILLIONS OF DOLLARS LEFT OVER FROM PROJECTS. THE COMMUNITY IMPROVEMENT PROJECTS. I'D LIKE TO CONSIDER WHAT CAN WE DETERMINE OUT OF THOSE PROJECTS THAT CAN BE SOME OF THAT MONEY THAT CAN APPROPRIATELY PAY FOR ONE-TIME EXPENSES THAT MAY BE IN THE GENERAL FUND TO AGAIN FURTHER ALLEVIATE THE TAX RATE. 
          AND THEN THIRD, YOU KNOW, CAN WE LOOK AT USING SOME OF THAT MONEY TO PAY CASH FOR FUTURE PROJECTS INSTEAD OF BORROWING MORE. SO I'M NOT SUGGESTING THAT WE DO ANYTHING TO COMPROMISE ESSENTIAL SERVICES OR OUR FINANCIAL HEALTH. 
          BUT WHAT I AM ASKING IS, BEFORE WE ASK TAXPAYERS FOR MORE, CAN WE LOOK AT SPENDING LESS, USING THE MONEY WE ALREADY HAVE, AND BORROWING LESS? AND SO I WOULD HOPE THAT, IN THIS CASE, THAT WE COULD LOOK AT WHAT TYPE OF THAT PROPERTY TAX RELIEF WOULD BE ONE OF THE GOALS FOR THIS BUDGET. 
          COUNCIL COMMENTS? ANY COUNCIL FEEDBACK ON TOP OF THAT? THAT'S A. DEFINITELY A GREAT DIRECTION. 
          I LOVE THE GOVERNANCE ASPECT OF YOUR STATEMENT. YOU DIDN'T JUMP INTO IMMEDIATELY, LIKE, HERE'S MY PLAN OR HOW WE WOULD DO THAT. SO WHEN WE GO BACK THROUGH KIND OF LIKE GOVERNANCE AND EXECUTIVE, JUST HEARING THAT, YOU KNOW, SO 42 CENTS AND STILL GET RAISES, RIGHT, OR CONSIDER RAISES. IS THAT WHAT I HEARD YOU SAY? HOW ARE YOU LOOKING AT SOME OF THE ADDITIONAL REQUESTS? BECAUSE I'M 100% IN STRIDE WITH YOU ON THE CIP. YEAH, WELL, I MEAN, I THINK THAT'S WHAT IT'S UP FOR US TO DECIDE. 
          BUT WHEN I LOOK AT THE NO NEW TAX RATE, BUT THAT A FEW HUNDRED THOUSAND DOLLARS, THAT'S GOING TO BE EASY TO GET FROM SOMEWHERE. I DON'T THINK THAT'S GOING TO BE THAT DIFFICULT. 
          BUT WHEN I'M LOOKING AT THE CAPITAL, AND AGAIN, AND I THINK THE CITY MANAGER, AND HE AND I HAD SOME DISCUSSIONS ABOUT THAT. YOU DON'T WANT TO USE ONE-TIME REVENUE, ONE-TIME MONEY, WHICH THIS IS, FOR ONGOING EXPENSES. SO, YOU KNOW, ALL THOSE THINGS HAVE TO BE PAID THROUGH PROPERTY TAX. 
          BUT WHAT I AM SAYING IS, ARE THERE SOME ONE-TIME THINGS, ARE THERE SOME THINGS IN THE GENERAL FUND OR OTHER WAYS THAT ARE ONE-TIME EXPENSES? HOW CAN WE LEVERAGE THIS MONEY TO, AGAIN, PROVIDE AS MUCH PROPERTY TAX RELIEF TO OUR, AND, YOU KNOW, STAFF MAY HAVE SOME OPINION ON THAT. WE'RE NOT GOING TO SOLVE THIS TODAY, BUT I JUST WANTED TO BRING IT UP. SO AS WE ENTER ON THURSDAY, JUST TO THINK, YOU KNOW. WHAT ATTEMPTS CAN WE MAKE? I MEAN, AGAIN, I DON'T WANT TO SAY, BUT WHEN YOU LOOK AT THE AMOUNT OF DEBT THAT WE'VE ADDED ON THE INS SIDE, AGAIN, TOTALLY SUPPORT IT. IT'S BEEN A SIGNIFICANT AMOUNT OF DEBT AND A SIGNIFICANT AMOUNT OF MONEY THAT'S BEEN ADDED TO TAXPAYERS. AND IN THE MEANTIME, WE'VE HAD THINGS TO HAPPEN WITH THE ECONOMY OVER THOSE SAME TIMES WHERE TAXPAYERS ARE MORE, MANY OF THEM ARE MORE, THEY'RE FACING CHALLENGES. AND SO I DON'T KNOW HOW MUCH WE CAN GET. I JUST THINK WE OUGHT TO LOOK AT THAT FOR THE POTENTIAL OF OUR TAXPAYERS TO PROVIDE THEM AS MUCH RELIEF. 
          BECAUSE I TELL YOU, WE BETTER GET USED TO IT BECAUSE IN THE FUTURE, THE STATE'S PROBABLY GOING TO TELL US WE BETTER BE PROVIDING TAX RELIEF THROUGH PROPERTY TAXES. SO I JUST SAY WHAT PASS CAN WE GET THERE TO NOT COMPROMISE THE SERVICES BUT PROVIDE SOME RELIEF FOR TAXPAYERS? SO I'M HEARING WHAT YOU'RE SAYING AND, LIKE, WHAT PASS CAN WE GET THERE AND DEFINITELY PROPERTY TAX RELIEF. 
          YOU'RE IN, YOU KNOW, THE CAPTAIN'S CHAIR FOR OTHER RELIEF. SO WHEN YOU LOOK AT DRAINAGE FEE, I MEAN, IT COMES ACROSS AS A TAX. 
          WHEN YOU'RE LOOKING AT SEWER AND WATER AND THINGS LIKE THAT DO YOU HAVE THE SAME DIRECTION THAT YOU'D LIKE TO, YOU KNOW, STAFF TO PURSUE, OR ARE YOU, KIND OF BIFURCATING THAT TO JUST PROPERTY TAXES ONLY AND FEES SEPARATE? WELL, I THINK IF THERE'S ANOTHER WAY TO DO IT, THAT WOULD BE CORRECT, BUT I THINK THE BIGGEST AMOUNT OF MONEY THAT WE GET THAT'S INVESTED INTO US IS FROM THE PROPERTY TAX. SO I THINK TAKING A LOOK AT THAT WOULD BE A WAY TO BE ABLE TO DO THAT. THERE ARE OTHER WAYS TO BE ABLE TO DO IT AND OTHER FEES, I MEAN, THAT'S SOMETHING WORTH LOOKING AT. BUT I THINK THE PROPERTY TAX IS THE BIGGEST INVESTMENT THAT PEOPLE ARE PAYING INTO THE CITY TO BE ABLE TO USE THAT, SO IF WE CAN PROVIDE SOME RELIEF FROM THAT, IT WOULD BE SOMETHING WORTH PURSUING. 
          AND I CAN SAY, TOO, I THINK THERE'S TWO THINGS I'M HEARING, COUNCIL MEMBER SIMPSON. ONE IS IF THE COUNCIL WANTED TO GO THE NO NEW REVENUE RATE, SO THAT'S A LITTLE EASIER TO ADDRESS BECAUSE YOU HAVE THE $6 MILLION OVERALL REVENUE. 
          YOU SUBTRACT THAT $700,000. 
          THAT'S HOW MUCH YOU HAVE TO WORK WITH THEN AT THAT POINT. THE SECOND THING THAT I THINK YOU'RE ASKING IS, ARE THERE THINGS EXISTING IN THE ONGOING BUDGET THAT ARE ONE-TIME PURCHASES THAT WE CAN THEN APPLY ONE-TIME MONEY TOWARDS, AND DOES THAT THEN TURN AROUND AND PRODUCE MORE SAVINGS? I THINK IS THAT WHAT YOU'RE TALKING ABOUT? YES, AND CAN THOSE HELP LOWER OUR M&O TAX RATE IS WHAT I'M LOOKING AT. 
          YOU KNOW, 
          [03:30:02]
HOW CAN WE DO THAT? I MEAN, WE'RE AT A POINT. I MEAN, THE GOOD NEWS IS AFTER THIS YEAR'S BUDGET, WE HAVE SOME DEBT ROLLING OFF. 
          SO TAXPAYERS ARE NATURALLY GOING TO GET SOME RELIEF AT THAT POINT. 
          BUT IF YOU'RE LOOKING AT THIS NEXT YEAR, I MEAN, IT'S GOING TO BE ONE OF THE HIGHEST YEARS OF, YOU KNOW, GOING AT THE CURRENT RATE THAT TAXPAYERS ARE PAYING. I'M SAYING WHAT, IF ANYTHING, CAN WE DO TO HELP PROVIDE SOME RELIEF TO THAT? YEAH, I THINK ONE OF OUR GOALS THAT I'VE SEEN THE BUDGET PROCESS HAS BEEN TO WE DON'T, DO WE HAVE ANY ONE-TIME PURCHASES BEING USED WITHOUT ONE-TIME FUNDING THAT I'M AWARE OF? THERE COULD BE SOME. I'D GIVE THE TEAM TO SEE IF WE CAN FIND THEM. 
          BECAUSE I KNOW WE HAVE REOCCURRING THINGS, LIKE WE REPLACE, IN THIS EXAMPLE, WE REPLACE A POLICE CAR EVERY YEAR. SO YEAH, IT'S A ONE-TIME PURCHASE, BUT WE DO IT EVERY YEAR BECAUSE WE HAVE A LOT OF THOSE. 
          BUT I THINK WE'D HAVE TO TRY TO IDENTIFY AS A TEAM, ARE THERE ANY EXISTING TRULY ONE-TIME PURCHASES THAT'S BEING FUNDED WITH ONGOING MONEY? SO THAT'S A QUESTION WE CAN LOOK INTO AND SEE, AND WE CAN WORK TOGETHER ON THAT TOMORROW AS A TEAM AND SEE WHAT WE CAN COME UP WITH. 
          YEAH, AND THE OTHER THING WOULD JUST BE, YOU KNOW, OF COURSE, THIS WOULD BE COMMITTING THE NEXT COUNCIL. WE'VE ALREADY COMMITTED TO THE DEBT THAT OUR TAXPAYERS ARE GOING TO HAVE TO BE PAYING NEXT YEAR. SO, YOU KNOW, I DON'T ANTICIPATE US ISSUING ANY MORE. 
          BUT IF WE CAN ALSO LOOK AT SOME OF THIS MONEY THAT WE HAVE TO, WE'VE LOOKED AT DOING A MILLION DOLLARS A YEAR FOR STREETS. CAN THIS, THIS CAPITAL MONEY THAT'S NOW FREED UP IS FOR NEXT YEAR'S DEBT, SO WE DON'T HAVE TO DO THE INS AND RAISE THE TAX RATE. SO I JUST THINK WE NEED TO, THE BEST WE CAN KEEP THE TAXPAYERS IN MIND THROUGH THIS, I'D JUST LIKE TO SEE US ON THIS BECAUSE, AGAIN, THE POINT WE'RE AT, IT'S A PRETTY STIFF BILL. 
          HOPEFULLY PROPERTY VALUES WILL GO DOWN, BUT I HOPE THERE'S WAYS THAT WE CAN BE ABLE TO. 
          HELP THE TAXPAYERS. AND I'LL ADD TO THAT. I KNOW THAT THE WORK THE COUNCIL DID EARLIER THIS YEAR FOR COST RECOVERY, THAT WAS A BIG HELP. WE WERE ABLE TO IDENTIFY A FEW HUNDRED THOUSAND DOLLARS TO GO TOWARDS THOSE MEASURES. 
          YOU SEE THAT IN AMW. YOU SEE THAT IN CITY MARSHAL. SO THAT WORK WAS VERY POSITIVE. THE SALES TAX HAS BEEN VERY GOOD, SO THAT'S A BIG BENEFIT THERE. 
          AND SO THE NICE THING IS WE ARE TRYING TO, WE HAVE IDENTIFIED SOME WAYS TO TRY TO REDUCE THE NEED ON PROPERTY TAX, BUT I THINK THE QUESTION YOU'RE SAYING IS, IS THERE MORE WE CAN DO? IF THE COUNCIL IS GOOD WITH THAT, WE CAN WORK ON THAT. 
          I'M JUST GOING TO ASSUME THE COUNCIL WILL BE GOOD UNLESS I SEE THREE OR FOUR HEADS SAY, NOPE, DON'T DO THAT. WELL, I DON'T DISAGREE. I THINK IT'S A GREAT STATEMENT TO MAKE. I THINK THAT WE'RE IN THESE POSITIONS. 
          ALL OF US ARE, I THINK, PRETTY SIMILAR IN THE WAY WE FEEL TOWARDS THAT. BUT I ALSO THINK THAT WE OWE A DUTY TO THE ORGANIZATION. WE OWE A DUTY TO LOOK AT EVERYTHING ELSE BECAUSE, AS YOU SAID, COSTS HAVE INCREASED. WHETHER IT'S THE PRICE OF ASPHALT OR WHATEVER IT IS, AND THE ORGANIZATION, THE EMPLOYEES, AND THE PEOPLE THAT RUN THIS ORGANIZATION. SO I DON'T DISAGREE WITH YOU AT ALL, AND I THINK WE COME IN EVERY YEAR WITH THAT AS PRIORITY, OF LIKE WE NEED TO KEEP TAXES AS LOW AS POSSIBLE WHILE PROVIDING THE BEST SERVICES POSSIBLE, AND IT'S A BALANCE. AND I THINK, LIKE I SAID, I AGREE WITH YOU 100%, BUT I THINK THAT'S THE POINT OF GOING THROUGH THIS, AND IT'S TEDIOUS AT TIMES TO LOOK AT EVERY SINGLE DOLLAR TO MAKE SURE WE UNDERSTAND WHERE IT'S COMING FROM. 
          I THINK WE DISCUSSED BEFORE, I THINK THIS COUNCIL INHERITED A LOT, I THINK MAYBE EVERY COUNCIL INHERITS A LOT, OF CANS THAT WERE KICKED DOWN THE ROAD. WE DID NOT HAVE THE CASH TO DEAL WITH THE ISSUES THAT WERE AT HAND. I THINK WE WERE PRETTY CREATIVE IN THE WAY WE CAME UP WITH DEBT FUNDING AND TO ADDRESS SOME PRETTY BIG ISSUES. 
          SO, YEAH, THE INS SIDE HAS GROWN QUITE A BIT. YOU KNOW, WE CAN ALWAYS HAVE THAT DISCUSSION. WE'VE HAD THAT WITH SEVERAL CITIZENS. YOU KNOW, WE'RE WORKING OFF CREDIT AND WE'RE DOING THIS, BUT WE WERE, IN MY OPINION, WE WERE FACED WITH SOME ISSUES THAT REQUIRED A LOT OF CASH IMMEDIATELY, AND THERE WAS NO WAY TO OVERCOME THAT. SO I AGREE WITH YOU, LES. I THINK THAT WE DO NEED TO FOCUS AND DO OUR BEST TO BE THE BEST STEWARDS WE CAN AND TO KEEP PROPERTY TAXES LOW. 
          BUT AT THE SAME TIME, WE'VE GOT TO BALANCE IT WITH ARE WE MEETING THE SERVICE REQUIREMENTS AND ARE WE BEING… SENSITIVE OR PAYING ATTENTION TO OUR ORGANIZATION, THE EMPLOYEES OF OUR ORGANIZATION AS WELL. 
          SO I THINK GREAT STATEMENT, BUT I THINK WE'VE GOT TO LOOK AT IT BALANCED ALL THE WAY THROUGH, WHICH I THINK IS WHAT YOU SAID. 
          WELL, I NEVER SAID THAT WE DON'T TAKE CARE OF OUR PEOPLE, OUR ORGANIZATION. BUT WHAT I'M SAYING IS TAXPAYERS ARE HAVING TO CUT BACK ON THINGS BECAUSE THEY DON'T HAVE THE MONEY TO DO IT. I'M SAYING AS LEADERS, LET'S LOOK ON WHERE, WHAT ARE SOME THINGS THAT WE NEED TO CUT BACK ON? BECAUSE THAT'S WHAT I HEAR FROM PEOPLE IS THEY SAY, I DON'T EVER SEE YOU CUTTING BACK ON MY TAXES. YOU KNOW, AND CITIZENS JUST CAN'T SAY, HEY, YOU KNOW, 
          [03:35:01]
I WANT A 3% INCREASE ON MY INCOME. YOU KNOW, ALL I'M SAYING IS, WHAT I HOPE IS THAT WE WOULD HAVE A BUDGET THAT WOULD TAKE A LOOK AT THAT. I WOULD AGREE. AND TO BE PART OF THAT, BECAUSE I THINK, YOU KNOW, AND I THINK WE'RE IN A LITTLE BIT DIFFERENT TIMES NOW THAN EVEN WE WERE TWO OR THREE YEARS AGO. 
          BECAUSE IF YOU LOOK AT, I MEAN, IF YOU'VE BEEN TO A GROCERY STORE LATELY, LIKE A BOX OF RASPBERRIES COSTS $8. I MEAN, THESE ARE REAL THINGS THAT PEOPLE ARE FACING. AND I JUST THINK AS WE'RE LOOKING AT. WHAT WE'RE DOING AND WHAT WE'RE DOING AS A CITY DON'T WANT TO, YOU KNOW, CONTINUE TO PROVIDE THOSE SERVICES, BUT I JUST THINK THAT WE HAVE TO BE COGNIZANT OF WHAT ARE CITIZENS ARE EXPERIENCING AND THEY DON'T AT THE END OF THE DAY THEY DON'T HAVE A CHOICE OF HOW MUCH TAXES TAXES THEY PAY IF THEY WANT TO KEEP THEIR HOUSE. IT'S UP TO US TO DETERMINE HOW THEY WANT TO DO THAT AND I'M JUST ASKING THAT YOU KNOW, IF, I WOULD HOPE THAT AT THE END THERE'S A BUDGET PROVIDING A LITTLE BIT OF RELIEF ON THE PROPERTY TAX. OTHER FEEDBACK COUNCIL? NOTHING? OKAY, NOT SPEAKING TO THIS STAFF, SPEAKING TO MY EXPERIENCE. 
          FOR THE LAST FIVE YEARS, WHAT I HAVE OBSERVED AND PARTICIPATED IN IS A NATURAL, A NATURE TO UNDER-PROJECT REVENUE, OVER-PROJECT EXPENSES. THAT'S JUST THE NATURE OF THAT. IT'S NOT MUCH DIFFERENT THAN ME WORKING WITH MY... ESTIMATOR AND MY BUSINESS PARTNER IN MY CONSTRUCTION BUSINESS YOU KNOW WE'RE GOING TO OVER PROJECT WHAT SOME OF THOSE SUBCONTRACTOR FEES COULD BE AND WHAT IFS AND THEN WE BUDGET IN CONTINGENCY FEES AND THEN WHEN WE LOOK A YEAR OUT AND WE SAY HEY WHERE DO WE WANT TO BE A YEAR FROM NOW WELL LET'S UNDER PROJECT MAYBE HOW MUCH WE'RE GOING TO REVENUE RIGHT THESE CAN BE HEALTHY AS WELL AS A CRITICAL STATEMENT SO I'M NOT SAYING IT IS OUT OF BALANCE BUT I WANT TO QUESTION IT BECAUSE LIKE WE JUST WENT THROUGH THIS AND WE LOOKED AT A FEW THINGS FLAT SALES TAX PREVIOUS COUNCILS YOU KNOW A DECADE OR MORE AGO THEY WOULD HAVE LOVED TO HAVE SEEN THESE SALES TAX INCREASES AND WHAT THEY COULD HAVE DONE WITH THEM AND SO WE ARE SITTING IN A REALLY GOOD POSITION WITH SOME OF THOSE REVENUES THAT ARE BEING DRIVEN HERE FROM PEOPLE THAT ARE NOT PROPERTY TAXPAYERS. 
          THEY ARE... BUSINESSES AND UTILIZERS OF OUR COMMUNITY AND IT'S EXACTLY WHAT WE'VE SET UP AND WHAT THE VOTERS PUT IN PLACE PROBABLY 30 YEARS AGO NOW THROUGH THE AEDC AND OTHER MECHANISMS THAT HELP TO GROW THE CITY AND SO YOU HAVE ALL SORTS OF THINGS PIDS AND TIERS AND EDC'S EMPOWERMENT ZONES EVERYTHING OUT THERE THAT'S HELPING AND YOU'RE STARTING TO SEE THE BOTTOM LINE SO I WOULD ENCOURAGE STAFF TO TAKE A BUSINESS MINDSET TO MANY OF THESE THINGS. DON'T HEAR THE CRITICISM FROM A COUNCIL PULLING OR PUSHING AGAINST A STAFF MEMBER. AND, YES, WE KNOW IT'S DIFFICULT. 
          AND THE HARD SIDE, I MEAN, AS GOOD AS IT IS TO HAVE THE ADDITIONAL REVENUES COMING IN FROM SALES TAX AND SEE THE MUCH MORE LIKELIHOOD OR GREATER PERCENTAGE THAT THEY'RE GOING TO INCREASE IS THE DIFFICULTIES IS THAT MANY OF YOU GUYS DEAL WITH THE OLD INFRASTRUCTURE. 
          MANY OF YOU SPEND YOUR SATURDAYS TRYING TO FIGURE OUT HOW TO KEEP THAT PIECE OF EQUIPMENT RUNNING OR HOW TO FIX THAT MAINLINE REPAIR, KEEP THE WATER FLOWING, YOU KNOW, TO THE JAIL ON THE SOUTH SIDE OF TOWN. SO THERE ARE SOME ADDITIONAL REVENUES, BUT THEY'VE GOT TO BE BALANCED WITH WHAT WE DID GET SADDLED WITH, WAS SEVERAL THINGS THAT IF WE'D HAD A INTEREST IN SINKING FUND BUILT UP OVER THE TIME, IF WE HAD HAD A LITTLE BIT MORE OF A MAINTENANCE PROGRAM, THAT IS WHAT WE'RE TRYING TO DO IN THE STRATEGIC PLAN IN GOOD GOVERNANCE AND PUT THOSE POLICIES IN PLACE. SO I ENCOURAGE US WHERE IT'S GOOD DEBT, IF YOU'RE GOING TO HAVE A PIECE OF EQUIPMENT THAT YOU ARE GOING TO TRADE OUT EVERY FIVE YEARS, EVERY SEVEN YEARS, MAYBE THAT'S A CONTINUATION OF THE POLICIES THAT WE'VE ALREADY ENACTED THAT IS GOOD DEBT. AND THEN IF WE HAVE BAD DEBT THAT WE CAN PAY OFF WITH EXISTING REVENUES, BUT WHAT I WANT TO LOOK BACK ON IS THE CIP OF, WE WOULD SAY, SAVINGS OR UNSPENT MONIES OF $43 MILLION THAT'S BEEN RECOGNIZED BY STAFF. THAT'S NOT MENTIONED ANYWHERE IN HERE, CORRECT? LIKE, WE'RE NOT TALKING ABOUT THOSE MONIES GOING TOWARDS ANY OF THESE PROPOSALS. 
          EVERYTHING IN THIS PROPOSED BOOK, AND INCLUDING IN THE CIP, WOULD BE MONIES THAT WE'RE IDENTIFYING. IT'S ALL BUILT INTO THE CASH FLOWS. GREAT. SO ANYTHING THAT WOULD BE OFFLINE OVER THERE WITHIN THE EXISTING CIP APPROPRIATIONS BALANCE COULD BE TREATED IN LINE WITH THE WAY THAT, YOU KNOW, COUNCILMAN SIMPSON IS ASKING US TO DIRECT IT, RIGHT? WELL, IT'S BUILT INTO THE CASH FLOW, SO WHATEVER AMOUNT WE HAVE AVAILABLE IS WHAT COULD BE ALLOCATED. 
          THAT'S THE $11 MILLION IN GENERAL FUND, DOLLAR AMOUNT, $13 MILLION IN UTILITIES AND VARIOUS OPTIONS. WELL, SO THAT IS SOMETHING THAT I GUESS MY 
          [03:40:01]
DIRECTION, I WANT TO MAKE SURE WE ARE RUNNING A HEALTHY BUDGET AND WE'RE KEEPING OUR FINANCES SEPARATE, RIGHT? SO WE HAVE FINANCIALS AND THEN WE HAVE OUR BUDGET, AND SO MUCH OF WHAT WE DO DURING A NORMAL BUSINESS YEAR ENDS UP ON THE BOTTOM LINE OF A CASH FLOW, RIGHT? THAT FUND BALANCE. 
          BUT THEN ONCE WE KICK THAT MONEY OUT AND IT'S BEEN APPROPRIATED OVER TO THE CIP PROGRAM AND PROJECT, IT'S NO LONGER VISIBLE IN THAT CASH FLOW. AND CORRECT THAT IF THAT'S WRONG. NO, IT'S BUILT INTO THE CASH FLOW. 
          THAT'S THE TRANSFER OUT, BUT THEN YOU'VE GOT SOME EXCESS. 
          JUST FOR THE ONE YEAR. 
          JUST FOR THE ONE YEAR, SIR, RIGHT? YEAH, BUT THEN WE HAD TO CLOSE OUR PROJECTS TO FIX THE CASH FLOW ISSUE ON SOME FUNDS, SO IT'S ALL FACTORED IN. 
          I THINK THAT'S GREAT. WE CAN'T DO BUSINESS LIKE THAT. WE CAN'T, RIGHT? THIS COUNCIL ISN'T GOING TO BE ABLE TO TRACK IF WE TRY TO GO BACK AND WE TRY TO FIX THE CIP PROGRAM WITHIN THE CASH FLOWS OF THIS. WHAT WE ARE GOING TO NEED IS WE'RE GOING TO NEED TO SEE WHAT IS EACH FUND RUNNING DURING THE YEAR, HOW DID IT END UP, WHERE DID THE MONEY GO, AND THEN WHAT DO WE HAVE TO TO WORK FORWARD WITH. 
          LET THE CIP BE A STANDALONE. 
          WE'VE CLOSED OUT PROJECTS, YOU GUYS HAVE CLOSED THEM OUT, THEY'VE BEEN RECOGNIZED, NOW THEY'RE BEING CAPITALIZED. 
          THOSE AMOUNT OF MONIES CAN'T JUST GET WASHED INTO A THOUSAND PAGE BUDGET THAT WE'RE EXPECTED TO FOLLOW. SO MY DIRECTION, COUNCIL, CAN Y'ALL FOLLOW THAT? OR WOULD YOU MUCH RATHER SEE THOSE CIP FUNDS THAT ARE PREVIOUS APPROPRIATIONS? WE'RE TALKING BACK TO 2012. I'M NOT TRYING TO RIGHT-SIZE THAT SHIP IN THIS CURRENT YEAR BUDGET. I WANT TO PUT FORWARD A BUDGET THAT RECOGNIZES CASH FLOWS FROM FUND BALANCES BUT KEEPS ALL OF THE EXISTING CIPS THAT ARE APPROPRIATED FROM PREVIOUS YEARS SEPARATE. 
          WELL, I WOULD SAY IF WE DO THAT, THEN THERE'S NO WAY THAT WE'RE CUTTING PROPERTY TAXES. 
          LET ME SEE WHERE YOU'RE STAYING. HOW DO WE HELP? BECAUSE REMEMBER, A LOT OF THIS MONEY IN CIP WAS IN OPERATIONS TO BEGIN WITH. 
          AM I CORRECT ON THAT? I MEAN, AT THE END OF EACH YEAR, WE GET MONEY FROM THE TAXPAYERS USED FOR THE OPERATIONS. IF THE MONEY IS NOT USED THAT YEAR, IT GETS SWEPT OUT AND GOES INTO CAPITAL. WHAT I'M SAYING IS, AND IT'S GREAT THAT WE FOUND THIS. FOUND IS NOT THE RIGHT WORD TO USE IT. IT WAS ALWAYS THERE. IT'S GREAT THAT WE FREED UP THIS MONEY TO USE ELSEWHERE. I'M JUST SAYING, CAN SOME OF THAT MONEY BE USED TO HELP PROVIDE SOME PROPERTY TAX RELIEF? CAN OUR CITIZENS BENEFIT FROM THIS $43 MILLION THAT HAS BEEN FREED UP? GREAT. LET'S JUMP INTO THAT JUST A LITTLE BIT MORE AND MAXIMIZE OUR TIME HERE. YOU HAVE A PROJECT, PROJECT X, IT'S A MILLION DOLLARS, IT WAS APPROVED AND APPROPRIATED BACK IN 22. DIDN'T GET DONE UNTIL 23, FREEMAN DIDN'T CLOSE IT OUT UNTIL 24. PROJECT WAS BROUGHT IN AT $500,000, THERE'S NOW A $500,000 SURPLUS SAVINGS. 
          THAT'S RECOGNIZED ON HIS REPORT. HAS NOTHING TO DO WITH THIS YEAR'S BUDGET, AND IT'S NO LONGER IN THE FUND BALANCE. IT WAS ALREADY CALCULATED SEPARATELY, AND IT SITS. 
          IN OUR INVESTMENT PORTFOLIO, WITHIN ONE OF THOSE SEEDERS OR WHATEVER MECHANISMS WE'RE HOLDING THOSE MONIES ON, THOSE AMOUNT OF MONIES, WHAT I HEARD YOU SAY IS YOU WANT TO CAPTURE THOSE, USE THAT TO PAY DOWN DEBT POTENTIALLY, WHICH COULD BRING PROPERTY TAX RELIEF, OR USE THOSE TO GO DO ONE-TIME PROJECTS THAT WE CAN REALLOCATE THAT TO, AND THEN WE CAN BE MORE AGGRESSIVE WITH OUR BUDGET BECAUSE WE'RE NOT TRYING TO PULL... AS MUCH ON ONE-TIME EXPENDITURES THIS YEAR? WELL, I DON'T THINK WE CAN PROVIDE ANY TAXPAYER RELIEF THIS YEAR ON THE INS. I MEAN, WE'RE COMMITTED TO IT. I MEAN, EVEN IF WE PAID OFF, IF WE PAID SOME OF THAT DEBT DOWN, NOT TO SAY THAT WE COULDN'T DO IT, BUT TO ME, YEAH, THERE'S THREE WAYS THAT WE CAN DO THAT ON THE PROPERTY TAX SIDE. 
          THERE'S NO NEW TAXES, NOT A WHOLE LOT OF MONEY, BUT IT SAYS, HEY, WE UNDERSTAND WHERE YOU ARE ON THAT. IS THERE ANY REASON WHY WE CAN'T TAKE SOME OF THIS, THE CIP MONEY THAT'S BEEN FREED UP, AND USE IT ON SOME ONE-TIME KEY PROJECTS IN THE GENERAL FUND BUDGET? IS THERE ANY LAW THAT WOULD PREVENT US FROM DOING THAT? SO THAT'S WHAT I'M SAYING. 
          THAT COULD PROVIDE SOME RELIEF WHERE WE'RE NOT HAVING TO GET AS MUCH PROPERTY TAX MONEY ON THE M&O SIDE IF THERE ARE SOME THINGS THAT THIS MONEY COULD GO FOR IN ADDITION TO OTHER PROJECTS AND WHATEVER IT MIGHT BE. SO AS I UNDERSTAND IT, WE'VE GOT $11 MILLION THAT ARE GENERAL FUND RELATED, CORRECT? 12.7, I THINK, OF GENERAL FUND REQUESTS. SO 12.7, BECAUSE THE OTHER PART OF THE 43 IS DESIGNATED TO ENTERPRISE FUNDS, CORRECT? SO IT COULD BE WATER AND SEWER, 
          [03:45:01]
THAT TYPE OF THING. SO WE HAVE THAT AMOUNT OF MONEY IN THE GENERAL FUND. CAN SOME OF THAT MONEY BE USED TO PROVIDE PROPERTY TAX RELIEF? BY PAYING FOR SOME THINGS IN THE GENERAL FUND THIS YEAR THAT, AGAIN, NOT PAYING FOR SALARIES OR THOSE TYPES OF THINGS ONGOING, BUT ARE THERE CERTAIN THINGS THAT WE COULD PAY FOR ONE TIME TO TAX RELIEF. AND THEN THAT GETS US INTO NEXT YEAR, WHEN WE HAVE A LOT OF DEBT ROLLING OFF, THAT WE CAN CONTINUE LOOKING AT, YOU KNOW, HOW DO WE BALANCE MEETING THE NEEDS OF THE CITY, AND REALIZING THE PRESSURES THAT TAXPAYERS GET UNDER. 
          OKAY. AND SO WITH MR. FREEMAN, LET ME MAKE SURE I DON'T PUSH BACK ON AN AREA THAT I'M NOT TRYING TO. BECAUSE, LIKE, YOU ARE CORRECT IF YOU'RE LOOKING AT SEWER AND WATER REVENUES, RIGHT, AND YOU'RE SAYING SEWER AND WATER MONIES ARE SITTING OVER THERE. THEY MAY STILL BE IN A FUND SOMEWHERE, RIGHT? I SAY WE'VE GOT $40 MILLION JUST TO START THE YEAR. SO IF THAT PROVES OUT, YOU ARE GOING TO HAVE SOME RESTRICTED MONIES THERE THAT CAN GO TO SOME OF YOUR $70 MILLION CIP REQUESTS WITHOUT IT HAVING TO COME OUT OF, LIKE, THE PREVIOUSLY APPROVED CIPS, RIGHT? SO. IT WOULD JUST BE THE DIFFERENTIATION OF CURRENT YEAR FUND BALANCE AND THE ACKNOWLEDGMENT OF PREVIOUS CIPS THAT WERE PREVIOUSLY APPROPRIATED. SO THOSE MONIES DIDN'T STAY IN THE FUND BALANCE EVERY YEAR. 
          THE FUND BALANCE WAS REBALANCED, A TERM THAT MRS. STORER USED. AND SO THAT REBALANCE ON THESE PAPERS DOES NOT REFLECT THE AMOUNT OF MONIES THAT HAVE BEEN APPROPRIATED FOR THE CIP. 
          AND SO WE KEEP THOSE SEPARATE. 
          NOW, WHERE I'M LOST, AND I NEED GREATER CLARITY AND I THINK I NEED CLA TO HELP ME, IS WHEN WE ARE TAKING SOMETHING FROM A CIP JOURNAL ENTRY, WHICH IS A BAD WORD, BUT IT'S THE ONLY ONE I KNOW TO CALL IT, AND WE'RE STARTING IN THE RED, WE'RE MOVING IN EXPENDITURE LINE ITEM. 
          AND THEN WE'RE ENDING IN THE BLACK. 
          I DON'T KNOW HOW WE'RE DOING ANY OF THAT AND MY REQUEST, IN BEING ABLE TO VOTE FOR A BUDGET IS TO BE ABLE TO SEE WHAT IS THE ACTUAL YEAR, JUST THE BUSINESS YEAR. EVEN IF WE JUST STARTED AT A ZERO BALANCE, WHAT'S THE TOTAL REVENUES FOR THE YEAR FROM THAT FUND? WHAT'S THE TOTAL REQUESTED EXPENDITURES? WHAT'S THE NET AMOUNT REMAINING? SO AS AN EXAMPLE, SEWER AND WATER CAN BE REAL SIMPLE REGARDLESS OF WHERE WE CAME INTO THE YEAR. AND EVEN IF WE ARGUED OVER IT, WE COULD LOOK AT TOTAL REVENUES OF SAY $105 MILLION. 
          TOTAL EXPENDITURES 75 OR 80 MILLION DOLLAR NET CASH POSITION OF THE BALANCE AND SO THAT WOULD BE VERY HELPFUL TO US AS WELL AS TO OUR CONSTITUENTS UH LET ME KEEP GOING UM I DON'T KNOW THAT WE CAN GIVE YOU ANY MORE FEEDBACK ON THE 700K BUT WE DON'T UNDERSTAND IT SO IF WE'RE HEARING THAT IF WE DO RAISE ONE PENNY UH SO EVEN IF YOU JUST KEPT THE TAX RATE FLAT YOU DIDN'T REDUCE IT, THE PENNY, YOU STILL SHOULD SEE A $1.6 MILLION REVENUE. 
          AND IF WE GO THE $2.5, $2.75 CENTS, THAT'S BEING PROPOSED, WE SHOULD HAVE A GREATER REVENUE. 
          DID YOU HAVE A COMMENT? WE'LL BRING BACK SOME INFORMATION ON THE CALCULATION. GREAT. I THINK IF WE CAN GET TO THAT, AND THEN IN OUR WATER BILLING, WE DON'T HAVE MR. ECKROOT'S CONSULTING, ADVICE AND EXPERTISE BACK. 
          BUT WHAT WE WERE GIVEN FROM RICH WHEN HE WAS HERE IS THAT WE ARE SEEING MORE ACCURATE METERING. AND SO I WOULD HOPE COUNCIL AND STAFF CAN WORK TOGETHER ON SOME OF THE WATER THAT'S FLOWING THROUGH THOSE METER IS NOW CALCULATED IN THE TENTS WHERE IT WASN'T BEFORE. AND SO RICH WAS THE ONE THAT SAID, HEY, WE THINK WE COULD SEE AN EIGHT TO A 10 PERCENT INCREASE. 
          IN REVENUES IN THAT DEPARTMENT JUST BASED ON THE NEW METERING SYSTEM AS IT'S RECONCILED AND IT'S ACCURATE. SO I'M NOT SAYING WE RAISED THE RATE AT ALL. I'M JUST SAYING WE RECOGNIZE THE ADDITIONAL MONIES THAT ARE COMING IN DUE TO THE NEW METERING SYSTEM. 
          CHRIS ECKERT, WITH THAT INFORMATION IN MIND, HE STILL ADVISED AN 8% INCREASE FOR RATES. HE KNEW THAT INFORMATION WHEN HE ADVISED THAT TO US. AND I DIDN'T GET THAT. SO WHEN WE WERE TALKING TO HIM AND WE SAID, WELL, WE'VE ALREADY BUILT IN A 5% INCREASE, AND SO HE HAD SAID, WELL, THAT WOULD CHANGE MY 8%. AND THEN AT THAT TIME, HE DIDN'T HAVE THAT BIT OF INFORMATION, SO MAYBE YOU'VE CONTINUED THE COMMUNICATION. 
          CAN WE GET HIS KIND OF CONSULTING EVAL AND MAYBE GET SOME GUIDANCE FROM HIM BEFORE WE VOTE ON THIS? BECAUSE I KNOW YOU GUYS ARE PROPOSING A RATE CHANGE. 
          YEAH, I CAN FIND WHERE HE ADVISES TO THAT YEP. 
          OKAY. YOU KNOW, PRETTY PRODUCTIVE MORNING. 
          I WON'T MAKE ANY COMMENTS ABOUT SOME OTHER THINGS, AND WE CAN JUST MOVE FORWARD FROM HERE. SO IS THERE ANYTHING ELSE THAT WE CAN GIVE YOU GUYS THAT YOU CAN, I MEAN, IS THERE ANYTHING ELSE YOU NEED 
          [03:50:01]
TO ASK US BEFORE WE WALK AWAY HERE TODAY THAT YOU NEED CLARITY ON? NO, SIR, I DON'T THINK SO. COUNCIL, ONE FINAL TIME IF YOU'VE GOT ANYTHING ELSE? OKAY, I APPRECIATE YOU GUYS BEING HERE. HOW DID WE NOTICE THE AGENDA, MS. CITY SECRETARY? ARE WE GOING TO ADJOURN THIS AND THEN WE'LL RECONVENE AT 1? YES, MAYOR. THIS IS A SEPARATE MEETING, SO IF YOU'D ADJOURN THE WORK SESSION, THAT WOULD BE GREAT. 
          GENTLEMEN, MOTION AND A SECOND TO ADJOURN? MOTION. YOU'RE ADJOURNED. 
          THANK YOU GUYS FOR BEING HERE. APPRECIATE EVERYBODY FOR TUNING IN.
* This transcript was compiled from uncorrected Closed Captioning.