Aug 14, 2026 City Council Work Session

[00:00:04]

WE WILL CALL OURSELVES

[1. 8:00 AM - City Council convenes in City Council Chamber]

[2. City Council Budget Workshop]

COUNCILMAN SIMPSON, IF YOU DON'T MIND, LET'S PRAY.

HEAVENLY FATHER, WE THANK YOU FOR THIS MORNING THE OPPORTUNITY TOGETHER. AND I ASK A SPECIAL BLESSING ON ALL THAT ARE IN THIS ROOM AND FOR WHAT THEY DO FOR OUR COMMUNITY. AND JUST ASK THAT YOU LOOK OVER THEM AND CONTINUE TO GUIDE THEM OR BE WITH US TODAY. LET US LOOK TO YOU FOR A DIRECTION IN ALL THAT WE SAY AND DO. WE PRAY THIS IN JESUS NAME.

AMEN. AMEN. THANK YOU SIR. ALL RIGHT, CAN WE GET BACK TO YOU MR. FREEMAN? YES SIR. PICK UP WHERE WE LEFT OFF. I COULD JUMP IN REAL QUICK JUST TO KIND OF GET STARTED. MAYOR, MEMBERS OF COUNCIL, THANK YOU FOR BEING HERE FOR DAY THREE OF THE BUDGET WORKSHOP. I THINK WE MADE GREAT PROGRESS YESTERDAY.

WE THANK YOU ALL FOR ALL THE GREAT FEEDBACK YOU GAVE US. I KNOW WE DID A QUICK OVERVIEW OF SUPPLEMENTALS AND CIPS AND WE THANK YOU FOR THE GUIDANCE YOU GAVE US.

WE HAVE PREPARED SOME RECOMMENDATIONS FOR BOTH SUPPLEMENTALS AND CFPS. YOU HAVE THOSE IN FRONT OF YOU. FOR OUR AGENDA TODAY WE TOOK DIRECTION FROM THE COUNCIL. WE HAVE A FEW PRESENTERS TO START OFF WITH TODAY. JUST KIND OF RUN THROUGH THE AGENDA. THE INTENDED AGENDA HERE IS THAT WE DO HAVE MAX READY TO TALK ABOUT OEM AECC. WE HAVE MICHAEL KASHUBA READY TO TALK ABOUT SOME BUDGET HIGHLIGHTS.

WE HAVE DONNA PREPARED TO TALK ABOUT MUNICIPAL COURT THIRD PARTY DELINQUENT TAX COLLECTIONS. WE HAVE MITCH PREPARED TO TALK ABOUT A HEALTH PLAN ADD ON REQUEST. WE ALSO HAVE SOME SLIDES FOR THE HOT SUBSIDIES REQUESTED BY COUNCIL MEMBER SIMPSON.

WE'LL HAVE THOSE READY TO GO.

LET'S SEE HERE. WE'LL HAVE A DISCUSSION ABOUT RECOMMENDED CIP SUPPLEMENTAL REQUESTS.

AFTER THAT LOLA AND FINANCE TEAM WILL TALK ABOUT DISCUSSION DIRECTION ON DEBT REQUESTS AND PRESENT SCHEDULES AND UPCOMING DEBT RETIRING THAT'S COMING UP FOR CITY HALL. AND THOSE THINGS WE TALKED ABOUT THAT YESTERDAY. WE HAD THAT READY TO GO FOR TODAY. WE ALSO HAVE THE WATER WASTEWATER ACFR CASH FLOW CALCULATION TO DISCUSS TODAY REGARDING CASH FLOW DEPRECIATION AND OTHER EXAMPLES ABOUT HOW WE CALCULATED THOSE FROM ACFR TO THE AVAILABLE FUNDS. AND THEN AFTER THAT WE'LL TAKE ANY REMAINING QUESTIONS YOU HAVE AND ANY GUIDANCE YOU CAN GIVE US. I DO KNOW THAT COUNCILOR REID HAS TO LEAVE TODAY AT 130, IS THAT CORRECT? AND SO, MY HOPE AND GOAL IS TO BE ABLE TO POWER THROUGH ALL THESE THINGS TODAY BEFORE HE LEAVES.

BUT OBVIOUSLY IF WE NEED TO KEEP ON GOING THAT'S AT THE COUNCIL'S PURVIEW. AND THEN AGAIN, I ALWAYS LIKE TO SAY WE CAN ALWAYS DO MORE DAYS IF YOU NEED IT. SO, WE'RE NOT TELLING YOU HAVE TO STOP TODAY. SO, IF THE COUNCIL DECIDES AT THE END OF THE DAY THAT YOU NEED SOME MORE TIME, WE NEED TO COME BACK AGAIN NEXT WEEK OR SO, WE CAN DO THAT. SO, WITH THAT, I'M GOING TO TURN OVER TO ANDREW TO TAKE US FROM HERE. YES, SIR. WE'LL BRING MAX UP TO GO OVER AEC AND OEM HIGHLIGHTS.

ALL RIGHT. GOOD MORNING, MAYOR AND COUNCIL, THANK YOU FOR THE OPPORTUNITY. WE CAN, WE CAN START WITH ACC. I KNOW COUNCILMAN SIMPSON, ABOUT A YEAR AND A HALF AGO YOU HAD, YOU HAD CONCERNS ABOUT OUR TEAM IN ACC, OUR TIMES, THINGS LIKE THAT. OUR STAFFING LEVELS ARE GOING UP, BUT ALSO SO IS OUR CALL LOAD.

OUR TRAJECTORY RIGHT NOW AND PROJECTIONS ARE LOOKING AT OVER RIGHT AROUND 300,000 CALLS. BUT MORE IMPORTANTLY WHAT THAT MEANS IS 1.1 MILLION RADIO TRANSACTIONS FOR OUR TEAM. THE MENTAL AND PHYSICAL WEIGHT THAT TAKES ON OUR TEAM IS PRETTY DETRIMENTAL.

SO, WE ARE LOOKING AT NEEDING MORE BOTH SUPERVISION AND ACTUAL EMERGENCY OR EMERGENCY COMMUNICATION SPECIALISTS FOR THAT TEAM. RIGHT NOW, OUR OPERATIONS ARE 24, 7, 365.

WE DO NOT HAVE THE SUPERVISION CAPABILITY TO RUN A 24, 7, 365. SO, THERE IS TIMES THAT WE DO NOT HAVE THE MIDDLE MANAGEMENT TO OVERSEE OUR TEAM. DOESN'T MEAN THINGS ARE SLOWING DOWN OR STOPPING. WE JUST SIMPLY ARE CHUGGING ALONG THE WAY WE CAN WITH WHAT WE HAVE AND WE'RE DOING VERY WELL AT IT. HOWEVER, OUR TEAMS ARE STRAINED. REALLY. THAT WORK LIFE BALANCE IS, IS BEING HIT PRETTY HARD. I'D BE REMINISCED TO SAY THAT I WASN'T ONE OF THE OFFENDERS FOR OVERTIME MYSELF. HOWEVER, I DON'T WANT TO DWELL ON THAT BECAUSE THAT'S NOT THE DIRECTION WE'RE GOING. WE HAVE MOVED FORWARD, WE HAVE MADE CHANGES TO ENSURE THAT DOES NOT GO BACK THAT WAY.

HOWEVER, WITHIN THOSE CHANGES WE'VE MADE COMES WITH THOSE COST SAVINGS OF THAT OVERTIME THAT WE WERE SEEING.

SO, AS WE PUSH FORWARD THROUGH THAT OVERTIME AND BRING THOSE COSTS DOWN, THE ASK THAT WE HAVE FOR THIS PERSONNEL, WHICH IS NOT UNDERSTANDABLY A SMALL ASK, BUT ANYTHING WE CAN GET WOULD BE HELPFUL. WE DO NEED EMERGENCY COMMUNICATION SPECIALISTS, WE DO NEED SUPERVISORS. WE DO NEED A TERMINAL AGENCY COORDINATOR ATTACK THAT HELPS BOTH FIRE OR, EXCUSE ME, POLICE AND ACC AS FAR AS OVERSEEING THOSE DUTIES,

[00:05:02]

THAT IS NOT UNCOMMON THROUGHOUT THE COUNTRY. IS BRINGING IN MULTIPLE AGENCY PSAPS AS WE HAVE. BUT THAT IS THE TRAJECTORY THAT WE HAVE. WE DO NEED SUPERVISORY OVERSIGHT, WE DO NEED HELP AS FAR AS DISPATCHERS AND CALL TAKES, THINGS LIKE THAT TO ENSURE THAT WE GET THE, THE ACCOUNTABILITY TO OUR CITIZENS WHO ARE ASKING FOR HELP. A ONE POINT TO NOTE THAT JUST THE NON-EMERGENT CALLS THAT WE GET THAT COME TO US IS ABOUT 131,000 OF NON-EMERGENCY CALLS THAT COME TO OUR CENTER. THAT CONSTITUTES OF WHERE LIKE I SAID, WE'RE LOOKING AT RIGHT AROUND 300,000 PROJECTED IN THIS COMING YEAR. SO, IT'S ABOUT A THIRD OF WHAT WE'RE LOOKING AT ARE CALLED JUST NON EMERGENT. SO, IN THAT WE NEED PEOPLE, WE ARE ABSOLUTELY LOOKING. I'VE HEARD WHAT THE VISION THAT YOU, THAT YOU ALL HAVE THAT WE ARE ABSOLUTELY LOOKING TO OFFSET WITH SOFTWARE AND TOOLS LIKE THAT THAT IS ALREADY WELL UNDERWAY WITH PROJECTS IN THE WORKS. HOWEVER, WE STILL NEED PEOPLE TO ANSWER THOSE CALLS AND DISPATCH OUR FIRST RESPONDERS. I WILL TELL YOU OUR OVERTIME COSTS HISTORICALLY AND HABITUALLY WE'VE BEEN PAYING AROUND 900,000. THAT IS COMING DOWN AND HAS COME DOWN QUITE A BIT. WE ARE ACTIVELY TRACKING THOSE ON A WEEKLY BASIS TO ENSURE THAT OUR TIME AND REPORTING THOSE TO CITY MANAGEMENT TO ENSURE THAT OUR TIME IS ABSOLUTELY MONITORED. AND WE ARE CUTTING EVERYTHING THAT WE CAN TO ENSURE THAT THOSE TIMES COME DOWN. BUT IN THAT SAVINGS THAT I BELIEVE IS ABOUT 23 OR 20 ISH FTES WORTH OF WORTH OF MONEY. SO, IN THAT WE DO SEE SOME COST SAVINGS THAT HOPEFULLY WE CAN PUT STRAIGHT INTO A NEW FTE. AGAIN, THOSE THE STEPS THAT WE'RE TAKING FULLY AND PROACTIVELY, VERY AGGRESSIVELY TRYING TO CUT DOWN ON OT AS MUCH AS POSSIBLE TO ENSURE THAT IF WE CAN JUST TRANSFER SOME OF THOSE HABITUAL FUNDS WE'VE BEEN PAYING FOR OT TO FTES THAT IS A LONG TERM SOLVE FOR THAT PROBLEM.

QUESTIONS ON AECC SIR. SO HOW MANY FTES DO YOU NEED RIGHT NOW TO SATISFY THE OVERTIME ISSUES AND WORK LIFE BALANCE? OUR REQUEST WAS 28 FTES IN TOTAL.

28 NEW 28 FTES IN TOTAL WAS OUR REQUEST 10 EMERGENCY TELECOMMUNICATIONS SPECIALISTS, 12 TELECOMMUNICATION SHIFT SUPERVISORS, FOUR SENIOR TELECOMMUNICATIONS SPECIALISTS, ONE TERMINAL AGENCY COORDINATOR. SO, 27, EXCUSE ME, 27 IN TOTAL. WHAT'S THE PERCENTAGE OF NON-EMERGENCY CALLS THAT WE'RE GETTING INTO THE CENTER THAT REALLY SHOULD COULD GO SOMEWHERE ELSE? I DON'T KNOW IF THEY COULD GO SOMEWHERE ELSE NECESSARILY.

SO, THIS IS A CONTINUED PROJECT WITH 311 TO ENSURE CALL ROUTING IS ACCURATE AND ENSURING THAT SOME CALLS SO WHETHER IT'S LIKE A BARKING DOG CALL, THINGS LIKE THAT. WE ARE WORKING WITH 311 AND HAVE BEEN FOR OVER A YEAR TO ENSURE THAT 311 TAKES AS MUCH AS THEY CAN.

BUT AS FAR AS THE PERCENTAGE OF CALLS THAT ARE COMING IN IS STILL ABOUT 33% OF OUR CALLS RIGHT NOW 33% OF CALLS ARE PROBABLY WOULD HAVE BEEN BEST DIRECTED TO 311 AND OR MAYBE THE. THAT'S EVEN AFTER THE POLICE THAT'S EVEN AFTER GOING TO 311. OKAY, WELL ANYTHING THAT YOU. BECAUSE I MEAN I THINK PEOPLE ARE JUST 911 IS A NUMBER THAT THEY REMEMBER. 311 IS NOT AS COMMON AS PROBABLY NOBODY'S GOT THE NON-EMERGENCY POLICE LINE MEMORIZED EITHER. IT'S JUST 911 IS , BUT I JUST WONDER IF YOU KNOW ONE THING THAT WE'VE

[00:10:01]

HOWEVER. THERE IS ALWAYS GOING TO BE A TIME WHERE IT NEEDS TO BE FULLY TRANSFERRED OVER TO ONE OF OUR CALL TAKES AND 911 TO ENSURE THAT THAT LEVEL OF SERVICE IS GIVEN THOSE PROCESSES, PROCEDURES AND EVEN TOOLS ARE THINGS THAT OVER THE LAST 12 MONTHS WE'VE BEEN WORKING WITH. I WILL CONTINUE TO WORK WITH KRISTEN AND HER TEAM AT 311 TO ENSURE THAT THOSE ARE SEAMLESS PROCESSES OF WHICH WE CAN SHARE OFFSETTING AS MUCH WITH SOFTWARE, THINGS LIKE THAT TO ENSURE THAT WE CAN AUTOMATE, THEREFORE KIND OF OFFSETTING FD COST.

HOWEVER, WE ARE ACTIVELY WORKING INTO CUTTING DOWN THOSE AS MUCH AS POSSIBLE.

WELL, I AGREE, BECAUSE THAT'S PART OF THAT CAN RELIEVE THE STRESS AS WELL AS THE CAUSE OF THOSE TYPES OF THINGS. I JUST REMEMBER SEEING SOME CAMPAIGNS ON A DON'T PUT IT IN THE ALLEY, WE'LL COME PICK IT UP. BUT I DON'T KNOW IF I'VE SEEN ANY CAMPAIGNS TO TRY TO SAY, HEY, HERE'S HOW TO DIRECT YOUR CALL IF YOU HAVE SOMETHING GOING ON TO BE ABLE TO HELP PEOPLE REALIZE THAT THIS IS THE BEST WAY TO DO IT. TIMES LIKE FOURTH OF JULY FIREWORKS VERSUS GUNSHOT CALLS, THINGS LIKE THAT, WE DO PUT SOME OF THAT OUT DURING THOSE, THOSE SUPER HIGH TIMES.

LIKE I SAID, ONCE WE, ONCE WE CONTINUE TO FINALIZE AND HASH OUT THE PROCESSES, PROCEDURES AND SOFT-WARES THAT WE, WE INTEND TO USE, THAT'S PROBABLY WHEN WE'LL START ACTUALLY DOING ACTIVE CAMPAIGNS. THANK YOU, SIR.

SO, TO BE CLEAR, MAX, YOUR ASK IS FOR 27 POSITIONS, IS THAT CORRECT? THAT IS THE FULL ASK? YES SIR. THAT'S THE FULL ASK OVER HERE ON THE, THE RECOMMENDED SHEETER THAT Y' ALL CAME UP WITH. I SEE ONE. IS THAT CORRECT? YES, SIR. YEAH, THAT'S RIGHT. SO, WHAT WE ASKED DEPARTMENTS DO LIKE POLICE, FIRE, ACC. SHOW US YOUR TRUE NEED. WE'RE NOT GONNA BE ABLE TO FUND ALL THOSE THAT MAY HAVE TO BE A FUTURE VOTER APPROVAL TAX RATE ELECTION TO ADD THAT MANY PEOPLE BECAUSE YOU CAN'T ABSORB THAT IN AN ANNUAL ALLOCATION. AND YOU SAID, MAX, YOU GOT 200, IS THAT WHAT YOU SAID? WHAT WAS YOUR TOTAL NUMBER OF PEOPLE YOU HAVE OVER THERE? PEOPLE? I HAVE A TOTAL OF 64 DEPARTMENT AS A WHOLE. SO, YOUR ASK IS 27.

ALMOST A 50% INCREASE.

CORRECT. SO, OF THOSE 64, 52 OF THEM ARE ACTUAL DISPATCHERS AND CALL TAKES. OKAY, SO. BUT YOU OBVIOUSLY ARE FUNCTIONING RIGHT NOW. BUT LIKE YOU SAID, IT'S A HEAVY LOAD. I MEAN MENTALLY, MENTALLY IT IS, IT IS ACTUALLY COSTING US PEOPLE.

THEY CAN'T. THAT MEANS IT'S TOO MUCH. AND YOU'RE BASICALLY SPENDING THE SAME. AND OVERTIME. CORRECT. COVER THAT.

LAST YEAR IS ALMOST A ONE FOR ONE THIS, THIS YEAR IT'S.

BUT IT IS, IT DOES CAUSE LONG TERM PROBLEMS, OPERATIONAL PROBLEMS, STAFFING STRUGGLES. I'M NOT IN THE BUSINESS OF PHYSICALLY BEATING DOWN AND MENTALLY BEATING DOWN MY TEAM. I WANT TO HELP THEM AS MUCH AS POSSIBLE. AND WHAT THAT TAKES IS PEOPLE AND THINGS. AND SO, I MEAN I SEE HERE FOR THE ONE PERSON. SO, IT'S ALMOST ONE FOR ONE. SO, IF YOU BRING SOMEBODY ON TO WORK 40 HOURS, BUT YOU ELIMINATE 40 HOURS OF OVERTIME. OBVIOUSLY, YOU'RE, IT'S, IT'S A NET POSITIVE REALLY TO THE BUDGET. RIGHT? CORRECT.

BUT IS THAT, IS THAT WHAT YOU'RE SAYING, ANDREW? I MEAN IT TRACKS OVER TIME BUT EVENTUALLY YOU FIND WHERE YOU'RE STILL GONNA HAVE PEOPLE TAKING LEAVE, YOU'RE STILL GONNA HAVE TRAINING, SO THERE'S ALWAYS GONNA BE OVERTIME.

BUT WE'VE GOT TO TRY AND GET THE BALANCE BETTER. YEAH, BUT I FIGURE YOU'RE PAYING SOMEONE TIME AND A HALF. RIGHT. OR YOU BRING SOMEBODY ON TO TAKE THAT LOAD AND YOU'RE PAYING THEM.

CORRECT. OUR CURRENT OVERTIME BUDGET IS ABOUT $235,000 WHICH I THINK THAT IS A REALISTIC BUDGET TO HAVE. SO, SO WHEN WE BUDGET THESE, ARE WE TAKING THAT INTO ACCOUNT? I MEAN IF WE LOOK AT LIKE HE WANT, YOU KNOW, WE'RE LOOKING AT THE PROPOSED LIKE WELL IT'S ONE EMPLOYEE.

WAS THAT NOT GOING TO BE A WASH? I MEAN IF WE BRING THEM FOR 40 HOURS NOW I GET BENEFITS AND THE WHOLE THING. THERE'S A WHOLE LOT MORE IN THERE BESIDES SALARY. IS IT ALMOST A WASH POTENTIALLY? YEAH. WE JUST HAVE. WE'D HAVE TO FIND OUT BECAUSE UNTIL YOU ADD THE EXACT NUMBER, YOU DON'T. PRETTY CLOSE. I WOULD HAVE TO GUESS PRETTY CLOSE. INSTEAD OF PAYING OVERTIME AT ONE AND A HALF TIME, THE RATE YOU BRING SOMEBODY IN JUST PAYING SINGLE. IT JUST DEPENDS HOW MANY PEOPLE ARE TAKING LEAVE WITH THEIR VACATION BECAUSE THEN YOU'RE STILL PAYING TIME. BUT, BUT THERE IS A TRADE OFF.

OKAY, BUT OKAY, BUT WE'RE NOT REALLY TAKING THAT INTO ACCOUNT. WHEN I'M LOOKING AT THE SALARY. HOW, HOW WE'VE KIND OF TAKEN INTO ACCOUNT IN THE PAST WITH FIRE. NOW THAT THEY'VE GOT TO THAT POINT, WE OVER HIRE THAT YOU'RE PAYING THE OVER HIRE FOR THE SALARIES AND HOPING YOUR OVERTIME DROPS.

WE HAVEN'T SEEN THE FULL EFFECT OF THAT YET. SO, FIRE IS KIND OF TESTING THAT OUT RIGHT NOW.

BUT IT SHOULD MATH OUT THAT. I MEAN IT'S ALMOST, I MEAN SO LAST YEAR WE DID GET OUR STAFFING LEVELS TO ABOUT 95% AND IMMEDIATELY THOSE CONVERSATIONS STARTED ABOUT OVER HIRING. BUT

[00:15:01]

OKAY. THANK YOU. YES, SIR. I THINK, I THINK WE'D BE AMISS IF WE DIDN'T SAY THANK YOU FOR JUGGLING THIS AND THANK YOU TO YOUR STAFF FOR THE BURNOUT AND THE CHURN, FOR DOING WHAT YOU DO WITH THE LIMITED RESOURCES.

THANK YOU. WE HAVE AN AMAZING TEAM. VERY DEDICATED, PASSIONATE PROFESSIONALS. AND HONESTLY, PUBLIC SAFETY FIRST RESPONSE.

PASSION IS WHAT DRIVES IT. AND I CAN'T IMAGINE MORE PASSIONATE TEAM OF WHAT I HAVE. THANK YOU, SIR. TELL THEM ALL THANK YOU FROM US. WILL DO, SIR.

COUNCILMAN REID, YOU GOT ANYTHING DOWN THERE? MORNING, MAX. MORNING, SIR. THANKS FOR COMING BACK. YES, SIR. YOU GOT 64 POSITIONS IN AECC AND OEM, IS THAT RIGHT? WE HAVE 64 IN AECC. THAT ALSO INCLUDES THREE ADMINISTRATIVE IN AECC AND THEN WE HAVE A TOTAL OF EIGHT IN EMERGENCY MANAGEMENT. ONE OF IS. ONE OF THEM IS AN OFFICE MANAGER.

ONE OF THEM IS A OUTDOOR SIREN TECH WHO. THEIR SOLE JOBS ARE OFFICE MANAGER WORK AND WORKING ON OUR OUTDOOR SIREN SYSTEM.

SO TECHNICALLY SIX OPERATION OPERATIONAL IN THE BASEMENT DOWN IN OEM. YEAH. SO LAST YEAR'S BUDGET 1.6, REVISED ESTIMATE, LOOKS LIKE YOU'RE BRINGING IT IN AT AROUND 1.2. THEN THIS YEAR'S BUDGET, 1.6 AGAIN ON OEM, IS THAT CORRECT? YES. AND THEN GOING BACK TO AECC, LAST YEAR'S BUDGET 6.7, REVISED ESTIMATE 6.5. THIS YEAR'S BUDGET, ROUGHLY 6.7. SO UNDER BUDGET BOTH TIMES? YES, SIR. OKAY. AND YOU'RE DOING THAT WITH PAYING ALL OF THE OVERTIME, SO OEM, OEM WE HAVE, WE HAVE MADE EXEMPT AS MUCH AS POSSIBLE IN THAT. IN THAT VEIN.

HOWEVER, IF THEY WERE NON EXEMPT, THEY WOULD BE LOOKING AT AROUND 4,500 HOURS OF OVERTIME. JUST OUT OF EIGHT PEOPLE TO YOUR QUESTION. AND ACC KEEPING IT UNDER BUDGET, THAT IS. YES. OFFSETTING COSTS BY TRYING TO SAVE MONEY ELSEWHERE IN OTHER LINES. SO I JUST WANT TO MAKE SURE WE'RE NOT HEARING SOMETHING DIFFERENT THAN YOU'RE SAYING IT. SO RIGHT NOW YOU'RE WORKING WITH 52 OF YOUR 64 POSITIONS FULL? WE ARE. I'D HAVE TO. I CAN'T REMEMBER THE EXACT NUMBER OFF TOP OF MY HEAD. WE ARE SHORT SOME OF OUR EMERGENCY COMMUNICATIONS SPECIALISTS. SO TELL US A LITTLE BIT ABOUT THE 27 POSITION REQUEST THAT'S JUST AN OVER HIRE. OPEN THOSE POSITIONS UP TO. IN ORDER TO GO ON HIGHER SO YOU CAN TRAIN.

AND THEN YOU WOULD SIGNIFICANTLY DECREASE YOUR OVERTIME PAY AND YOU WOULD STILL MAKE THAT BUDGET NUMBER WORK WITH THE REQUEST OR IN A SENSE, IF WE'RE, IF WE'RE LOOKING AT IT. AND AGAIN MY IGNORANCE WHEN IT COMES TO OUR OVERTIME BUDGET VERSUS MY ASK. THE ASK ITSELF IS RIGHT AROUND FOR 20. FOR 27. IT'S RIGHT AROUND THAT 2.4 MILLION IMPACT RIGHT NOW.

EVEN, EVEN IF WE HAD JUST ONE FOR ONE, WE THREW 900,000 AT IT. THAT WOULD DRASTICALLY IMPROVE MY TEAM AND HELP OUR TEAM. OKAY, SO YOU'VE GOT, YOU'RE GIVING US KIND OF THE HIGH. RIGHT. AND HERE'S.

WE'RE MAKING DO WITH WHAT WE'VE GOT. HERE'S WHAT WE REALLY WOULD LIKE.

BUT THEN EVEN IF WE COULD GET $900,000 BUDGET APPROVAL FOR FTES, HOW MUCH WAS YOUR OVERTIME IN THAT DEPARTMENT LAST YEAR? THAT WAS ABOUT 900,000. OKAY, SO THAT IS THE ONE FOR ONE, CORRECT? YEAH. AND IF YOU'RE LOOKING AT YOUR BUDGET BOOK, I DON'T THINK OUR REVISED ESTIMATE IS CORRECT. IT'S SHOWING 260 FLAT. IT'S GOING TO BE HIGHER THIS YEAR THAN 260 FLAT. YOU'RE SHOWING 260 IN THE OT ON PAGE 174. THAT IS 2223. WE HAD ACTUALS 864,000.

23, 24 ACTUALS 970,000. SO SIMILAR TO POLICE AND FIRE, THEY. THEY SPEND THE OVERTIME AND THEN IT ENDS UP BEING COVERED BY ALL THE OTHER DEPARTMENTS BY THE END OF THE YEAR. AND EXCESS SALES TAX REVENUE.

[00:20:01]

YEAH, THAT. THAT DRASTICALLY IMPROVES. MR. FREEMAN, HOW DO WE. HOW DO WE MAKE THAT HAPPEN ON YOUR END? BECAUSE I KNOW YOU WERE PUBLIC SAFETY FOR A GOOD WHILE AND THIS HAS BEEN UNDER USE. SO WHAT WOULD YOU ADVISE IF THE GOAL HERE WOULD BE TO GET ROUGHLY 10 FTES BUDGETED, BUT THEN RECOGNIZING THAT WE NEED TO STILL STICK WITH THAT 6.7 MILLION OVERALL, I WOULDN'T BUDGET IT. I'D CONTINUE TO WORK WITH GRAYSON FOR AUTHORIZATION TO OVER HIRE LIKE WE'RE DOING WITH A FIRE, AND THEN WE'RE GOING TO FIGURE OUT THAT BALANCE AND SEE WHAT WE CAN ACTUALLY BRING ON FORMALLY IN THE BUDGET NEXT YEAR WOULD BE MY RECOMMENDATION. AND WHY NOT JUST BUDGET THOSE 10 FTES? BECAUSE IT'S GOING TO SHOW YOU'RE UPSIDE DOWN, YOU WON'T BE A BALANCED BUDGET BECAUSE YOU STILL HAVE TO BUDGET FOR BOTH BECAUSE YOU DON'T KNOW THE TRUE. EVEN IF HIS ACTUALS ARE 6.5 MILLION AND HE'S UNDER BUDGET FOR THE YEAR, BUT I DON'T THINK THAT'S ACCURATE. I THINK OUR REVISED ESTIMATES OFF. WE NEED TO DOUBLE CHECK THOSE NUMBERS.

ACTUALS WERE 6, 4 IN 25 AND THEN THEY'RE SHOWING ACTUALS PROJECTED 6, 5 AND BUDGETS.

YEAH. SO I'M JUST CURIOUS IN WANTING TO HEAR, YOU KNOW, IF IT'S SEMANTICS AND HE HAS WHAT HE NEEDS, THEN LET'S MOVE ON.

BUT IF IT'S NOT, IF IT'S, IF IT'S WHERE MAX, YOU KNOW, OR MR. DUNLAP IS LIKE, WELL, I STILL CAN'T GO AND OPEN THIS UP. SO IF COUNCIL'S GIVING GOOD DIRECTION TO UNDERSTAND, YOU KNOW, YOU HAVE A MILLION DOLLARS THERE, PLUS YOU'VE GOT AN ASK OVER HERE. RIGHT. THAT WE WOULD INTEND TO FULFILL. YEAH. ONE FOR EACH DEPARTMENT WE CURRENTLY HAVE SLATED IN THERE. AND I THINK PART OF, PART OF WHY WE DON'T RECOMMEND BUILDING IT NOW, THEY'RE NOT AT 100% STAFF, SO WE DON'T WANT TO ADD POSITIONS UNTIL THEY GET TO FULLY STAFF. SO IT'S A SEQUENCING THING AS WELL, WHICH IS WHAT WE DEAL WITH FIRE AND HOPEFULLY WE'RE SOON GETTING TO WITH POLICE. ONCE THEY HAVE A FULL NUMBER, WE'RE GOING TO DO AN ACADEMY WHERE THEY'LL OVER HIRE BY 20 OFFICERS AND WE'LL BUILD IT INTO THE NEXT BUDGET. IS THE PLAN OKAY? YES, SIR, MR. DUNLAP. YEAH, THAT'S THE MODEL.

I THINK THAT WORKS WELL FOR US IS, IS IN THESE DEPARTMENTS THAT HAVE STRUGGLED TO GET TO FULL HIRE, WE DON'T KNOW THE FULL PICTURE UNTIL WE GET THE FULL HIRE.

AND SO, AND I THINK, I THINK WHAT ANDREW'S SAYING IS VERY, VERY GOOD. WE WANT TO KEEP, WE WANT TO, WE WANT TO START AN OVER HIRE PROCESS TO GET EVERYTHING FULLY STAFFED OVER HIRE. AND THEN THAT STARTS, STARTS TO SETTLE THE WAVES OUT AND WE START OVER TIME STARTING TO SEE WHERE THINGS ACTUALLY FALL, WHERE HOW LEAVE IS HAPPENING, WHERE OVERTIME IS HAPPENING, THAT ALLOWS US TO HAVE A BETTER BUDGET PICTURE GOING FORWARD.

SO I LIKE FOR US TO GET TO THE OVER HIRE PICTURE, THAT'S GOING TO BE A GREAT VICTORY RIGHT THERE BECAUSE I KNOW MAX HAS DONE A TREMENDOUS AMOUNT OF WORK OVER THERE JUST TO TRY TO MAKE THE CULTURE TO WHERE IT'S GOT TO BE AT AND SO WE CAN START GETTING TO THAT POINT AND THEN WHEN THAT HAPPENS, WE CAN START REALLY GIVING YOU BETTER NUMBERS OVER BUDGET. THANK YOU.

I HEARD, YOU KNOW, COUNCILMAN PRESCOTT, TAKE A MINUTE TO MAKE SURE THAT EVERYBODY HEARD US SAY THANK YOU, WE APPRECIATE YOU GUYS. MR. DUNLAP, I HOPE WHAT YOU WOULD HEAR HERE IS THE DIRECTION FROM COUNCIL, I BELIEVE, AND COUNCIL COULD REDIRECT. IT WOULD BE FOR YOU TO GO AHEAD AND CONTINUE WITH THAT OVER HIRE PRACTICE AND CONTINUE TO TRY TO BUILD OUT THAT TEAM. WHETHER THAT IS IN THE FORM OF WORKING WITHIN YOUR CURRENT BUDGET BECAUSE YOU ARE HAVING TO PAY SOME OF THAT OT OR YOU'RE ABLE TO BRING THOSE PEOPLE ON AND CUT THE OT DOWN. WE DEFINITELY SEE THE NEED TO KEEP YOU PRIORITIZED IN OUR PUBLIC SAFETY SYSTEM.

AND THEN WE JUST, WE WOULD WANT YOU TO BE ABLE TO COMMUNICATE BACK THAT THAT GIVES YOU WHAT YOU NEED FOR THIS NEXT YEAR WITH A GOAL IN PLACE OF EXPANDING THOSE DEPARTMENTS OEM AS WELL, YOU KNOW, AND CONTINUING TO BRING OEM UP TO A LEVEL OF COLLABORATION WITH, YOU KNOW, ALL 26 COUNTIES. ALSO, YOU KNOW, A LOT OF THE THINGS THAT ARE GROWING OUTSIDE OF THE CITY LIMITS AND CONTINUE TO BE A BURDEN AND A STRESS ON YOU TO FIGURE OUT IN YOUR STRATEGIC PLAN. DO YOU HAVE A MASTER PLAN? DO YOU HAVE YOUR PLANNING TOOL? DO YOU HAVE ALL YOUR LINES OF COMMUNICATION OPEN TO THOSE OTHER ENTITIES SO THAT YOU CAN DO WHAT YOU NEED TO OVER THERE IN THE BASEMENT? YES, THAT YOU KNOW, WE CONTINUE TO WORK THROUGH AS NEW PROJECTS POP UP IN THE REGION IN OUR JURISDICTION. WE CONTINUE TO TRY TO WORK WITH, WITH THOSE PARTNERS AS MUCH AS POSSIBLE AND ACC AS WE GROW.

AND I APPRECIATE THAT FEEDBACK AS WE BRING PEOPLE ON. I ABSOLUTELY NEED THE SUPERVISION TO, TO OVERSEE, YOU KNOW,

[00:25:01]

SO THAT, THAT WOULD BE THE ASK IS, IS SUPERVISION IF, IF ANYTHING AT THE VERY LEAST. AND I THINK TOO THE NICE THING THAT GIVEN THE, THIS HAS BEEN GOOD DISCUSSION, GIVEN THE DIRECTION I THINK I'M GETTING FROM COUNCIL IS AS WE ARE OVER HIRING, GET TO THAT POINT. AS I START SEEING MID YEAR BUDGET SAVINGS AND OVERTIME, I'M BASED OFF WHAT I'M HEARING, I MIGHT BE ABLE TO START MAKING SOME MID YEAR CHANGES TO START SHIFTING MONEY OVER TO SOME HIRING POSITIONS. SO WE WANT TO VET THAT OUT. I PROBABLY WANT TO GET WITH YOU GUYS AS WE'RE DOING THAT BECAUSE I WANT TO MAKE SURE I FEATHER THIS OUT RIGHT TO KEEP THE BUDGET WITHIN BUDGET.

BUT I THINK AS WE ARE OVER HIRING AND IF WE DO SEE OVERTIME COMING DOWN, I THINK I MAY HAVE SOME OPPORTUNITY HERE FROM COUNCIL TO START SHIFTING IT OVER TO THE SALARY LINES A LITTLE BIT.

I DON'T THINK MAX TOUCHED ON IT EITHER. HE'S CONTINUOUSLY LOOKING FOR NEW REVENUE SOURCES SO ACTUALLY COMING TO COUNCIL IS GOING TO BE A NEW CONTRACT WITH AISD THAT COULD FUND A POSITION. SO THOSE WILL HELP AS WELL.

BUT IT'S NOT LOCKED IN YET. IF IT GETS APPROVED, WE COULD PROBABLY BUILD THAT IN THE BUDGET RIGHT AWAY BEFORE SEPTEMBER. SO WE CAN GO AHEAD AND COUNT ON THAT FUNDING IN ONE NEW POSITION AS WELL.

OKAY. YES. QUESTION. I THINK WE ANSWERED THIS APD, BUT WITH THE OVERTIME THAT HAS BEEN TYPICAL OVER THERE, WE DON'T ADJUST THE BUDGET FOR THAT, DO WE? SO WHEN YOU LOOK AT THAT APARTMENT, EVEN THOUGH THE LAST FEW YEARS HAVE SHOWN THAT IT'S. WE HAVE TO FIND SAVINGS ACROSS THE GENERAL FUND TO COVER IT. YEAH, WE DON'T.

OKAY, SO THAT'S, THAT'S, THAT'S THE WAY THIS IS DRAWN UP AS WELL. YES, SIR. OKAY. BUT WE ANTICIPATE, I GUESS WE'RE GOING TO HAVE MONEY TO PAY THE OVERTIME. YES.

OKAY. YEAH. MOSTLY BETWEEN OTHER DEPARTMENTS AND THE TURNOVER OF NOT FILLING STAFF AND THEN HOPEFULLY EXCESS SALES TAX REVENUES AND IT ALL COMES TOGETHER. YEAH, THAT'S THE WORK THAT WE'RE GOING TO BE DOING THROUGHOUT THE YEAR. HOPEFULLY AS VACANCIES ARE. BECAUSE WE'RE GOING TO HAVE SOME VACANCIES AND WE DON'T KNOW WHO AND WHEN AND WHERE, BUT WE'RE GOING TO HAVE THAT IN ANY THIS BIG.

OUR JOB AS MANAGEMENT IS TO BE MAKING SURE THAT THOSE, THOSE SAVINGS CAN COVER FOR THOSE OVERAGES. THEN HOPEFULLY OVER YEARS TO COME WE CAN START, AS YOU SEE IN YOUR SUPPLEMENTALS THERE, START CHIPPING AWAY AT THAT BUDGET TO GET IT TRUED UP. SO, SO LIKE APD AND FIRE AND OEM, WE JUST, WE'RE JUST GOING TO COVER IT OUT OF GENERAL FUND AND WE JUST HOPE THAT IT'S GOING TO BE THERE TO COVER WHETHER WE DIP IN RESERVES OR WHAT. WE KNOW IT'S COMING. I GUESS I'M STILL CONFUSED WHILE WE JUST. THE BUDGET FOR THAT. BUT YEAH.

OKAY. BECAUSE IF YOU ACTUALLY SHOW IT ON PAPER, YOU WON'T, IT DOESN'T SHOW IT. IT SHOWS YOU'LL BE BUSTING. YOU DON'T SHOW THE OVERTIME AND BECAUSE OTHERWISE YOU'RE NOT DROPPING OR ADJUSTING SALARIES. BECAUSE WE HOPE TO BE FULLY STAFFED.

SO WE'RE SHOWING THAT. SO THERE'S NO SWAPPING IT AROUND.

AND APD AND FIRE IS A LITTLE TOUGHER BECAUSE THEY HAVE GUARANTEED TRAINING, MINIMUM STAFFING AND ALL THAT.

THAT'S STILL GOING TO BE PAYING OVERTIME FOR.

YEAH, I GUESS. I MEAN AGAIN MAYBE AN ACCOUNTING ISSUE, BUT WHY CAN WE HAVE A LINE ITEM THAT WE JUST BUDGET OVERTIME AND THEN AS WE SEE THE FULLY STAFFED. THOSE WOULD BE TRADE OUT. RIGHT. WE HAVE THAT TIME WE COME DOWN AND WE HAVE A LINEUP FOR OVERTIME, IT'S JUST UNDER BUDGET. IT'S ABOUT 2 MILLION INSTEAD OF SAY PD NEEDS 4 MILLION.

OKAY. YEAH. OKAY. AND SO HOPEFULLY, HOPEFULLY WHAT WE SEE FIRST IS THAT, IS THAT, I MEAN, YEAH, WE BUDGET FOR EVERY POSITION.

HOPEFULLY WE'RE GOING TO FILL THEM. SO IN THEORY WE DON'T BUDGET FOR THE FULL OVERTIME BECAUSE WE'RE HOPING WE'LL FILL EVERY POSITION. BUT THEN WHENEVER THE SALARIES DO COME IN UNDER, WE HAVE THAT STARTING POINT TO HELP FUND OVERTIME. BUT IN SOME OF THESE SITUATIONS THAT'S NOT ALWAYS ENOUGH.

THAT'S WHERE WE LOOK FOR OTHER DEPARTMENTS.

BUT WE'RE NOT BUDGETING FOR THE ASK OF 27, CORRECT? NO SIR. NO, THAT'S IN ADDITION TO. SO CORRECT.

THOSE ARE JUST SUPPLEMENTAL REQUESTS SO YOU CAN SEE THE TRUE NEEDS. SO WHAT'S TRULY FULL STAFF THEN? I DON'T UNDERSTAND BECAUSE I WOULD SAY THAT MAX WOULD TELL ME THAT FULLY STAFFED WOULD BE HIS STAFF PLUS 27. WELL THAT WOULD BE THE IDEAL SCENARIO. HE'S NOT FULLY STAFFED YET WITH HIS BUDGETED FTES NOW.

BUT WE DON'T BUDGET FOR THAT.

THAT LIKE, LIKE THE, THE FULL FTE, THE 95%. YES, WE DO HAVE THAT FULLY BUDGETED RIGHT NOW.

BUT THAT DOES NOT INCLUDE THE 27. NO, BECAUSE YOU THAT THAT'S AROUND 60. YOU HAVE TO ADD ANOTHER 20 AND OUR GOAL IS TO GET TO THE CURRENT FULLING STAFF NUMBER. I GOT YOU. SO WE, WE, WE CAME TO GET TO THAT THIS YEAR. WHAT'S CURRENT FULLY STAFFED? THIS 27 PLUS OR. NO, NO, NO, IT'S IN YOUR BOOK. CURRENT, CURRENT FULLY STAFFED, 64 TOTAL.

OKAY, 64. OKAY, I GUESS I HEARD YOU. I GUESS I HEARD THAT LIKE WE'RE GOING TO BUDGET FOR THIS AND THEN HOPEFULLY NO, WE'RE GOING TO OVER HIRE AND THEN ADJUST NEXT YEAR AS WE'RE SEEING THE BALANCE AND THEN WE CAN TRY AND BUILD IT INTO THE BUDGET. YES. STEP ONE IS TO GET TO BE ABLE TO FILL THESE POSITIONS.

THAT'S BUDGETED FOR. THAT'S STEP ONE. STEP TWO IS TO OVER HIRE AND THEN STEP THREE IS BASED ON THE OVER HIRES, START MAKING SOME ADJUSTMENTS OVER TIME AND SALARIES TO START, START MAKING THAT 64. GO TO 67, 68, WHATEVER.

THEN STEP FOUR OR FIVE WHERE I'M AT NOW, NEXT YEAR BRING BACK TO YOU A MORE BETTER BUDGET NOW THAT WE'VE HAD SOME REAL NUMBERS TO WORK WITH OVER THE YEAR. SO IT'S A MULTI STEP PROCESS WE'RE WORKING THROUGH. OKAY, THANK YOU. I HAD JUST A VERY QUICK QUESTION ON OVERTIME ON APD.

IS THERE ANY REVENUE RECOGNITION FOR THE OVERTIME

[00:30:02]

THAT'S STRICTLY, THAT'S LIKE A SECOND JOB FOR THEM THAT THEY CAN GO DO THE SIDE JOBS.

AND NO, IT'S NOT COSTING US ANYTHING.

BUT OKAY, THAT'S, THAT'S.

YEAH, WE'RE NOT GETTING ANY. I JUST WANTED TO VERIFY THAT WE WEREN'T PAYING THAT AND THEN THERE WAS NOT A COST RECOVERY METHOD. WHOEVER HIRES THEM, IF IT'S A SCHOOL EVENT OR, OR ANY OF THOSE KIND OF OFF DUTY JOBS. I UNDERSTAND.

THANK YOU. I JUST WANT TO THANK ALL THE DEPARTMENTS, PARTICULARLY THOSE THAT LOOK AT OVERTIME. WITH THE EFFORT THAT YOU'RE PUTTING INTO MONITORING THE OVERTIME.

MY EXPERIENCE IS IF YOU DON'T MONITOR, IF YOU DON'T TIGHTLY LOOK AT THE OVERTIME, IT CAN GET OUT OF CONTROL IF SOMEBODY'S NOT WATCHING AND MONITORING IT.

BUT I FEEL TOTALLY CONFIDENT IN THE PUBLIC SAFETY DIVISIONS WITH WHAT I'VE HEARD THE LAST COUPLE OF DAYS. YOU GUYS ARE DOING A GREAT JOB. SO THANK YOU AND THANK YOU FOR STAYING ON TOP OF THAT. WE DON'T WANT TO, YOU KNOW, IT'S GOT TO BE PAID, BUT I THINK, I REALLY FEEL LIKE WE'RE DOING A REALLY GOOD JOB AT MANAGING THAT BECAUSE IT'S.

IF YOU LOOK AT WHEN, YOU KNOW, WE WENT OVER AND IF WE GO OVER IN OVERTIME, YES, WE HAVE THE SAVINGS ON THE, YOU KNOW, ON THE EMPTY POSITIONS. BUT IF WE DIDN'T HAVE THAT SAVING ON EMPTY POSITIONS, AND THIS YEAR, FOR EXAMPLE, IF WE DIDN'T HAVE THE SALES TAX, THE MORE SALES TAX, IT COULD BE PROBABLY PROBLEMATIC THAT, THAT WE'RE GOING OVER THAT. SO I APPRECIATE EVERYBODY REALLY MONITORING THAT AND I FEEL CONFIDENT YOU GUYS ARE DOING A GREAT JOB. THANK YOU. THANK YOU, SIR. JUST FOR SAKE OF TIME OUT, I'LL KIND OF CLOSE UP WITH, WITH OEM. SO LIKE I SAID, WE HAVE A TOTAL OF 18 IN OFFICE EMERGENCY MANAGEMENT, SERVING WELL OVER SIX FIGURES OF PARTICIPANTS AND CITIZENS, WITH SIX OF THEM BEING ACTUALLY OPERATIONAL. RIGHT. RIGHT NOW WE SPEND ROUGHLY BETWEEN 75 AND 80% OF OUR TIME IN SOME SORT OF RESPONSE MODE AT ANY GIVEN MOMENT OF THE DAY. WE ARE A 24, 7 OPERATION AS WELL. WE RUN DUTY OFFICER SHIFTS MONDAY TO MONDAY, 08 TO 08. HOWEVER, IT DOES GET VERY HARD. SO WE DO NEED A LITTLE HELP IN EMERGENCY MANAGEMENT. WE ARE ABSOLUTELY, AS ANDREW POINTED OUT, IN BOTH OUR TEAMS, WE ARE LOOKING AT REVENUE OPPORTUNITIES WITH AISD UPSTAIRS FOR DISPATCH AS WELL AS IN EMERGENCY MANAGEMENT.

THERE'S OTHER, OTHER AGENCIES FOR OUR SERVICES THAT WE'RE LOOKING INTO. WHETHER IT'S EMERGENCY MANAGEMENT SERVICES, WHETHER IT'S OUTDOOR WARNING SIREN SERVICES, ANYTHING LIKE THAT. SO WE ARE ABSOLUTELY GOING DOWN THAT TO ENSURE TO OFFSET ANY POSSIBLE DOWN THE ROAD BRINGING ON NEW NEW TEAM MEMBERS.

HOPEFULLY THOSE CONTRACTS CAN OFFSET THOSE COSTS. BUT LIKE I SAID WE, WE ARE RIGHT AROUND THAT PROBABLY 13,000 HOURS SHORT OF AVAILABILITY A YEAR WITH OUR MANDATES. WE HAVE OVER 185 MANDATES WITH THEIR PLANS, PROCEDURES, THINGS THAT WE HAVE TO UPKEEP AND WE'RE RUNNING SHORT WHEN IT COMES TO JUST BASIC 2080 HOURS A YEAR. BASED ON THE PEOPLE WE HAVE, WE ARE ABOUT 12 TO 13 HOURS SHORT OF OUR WHAT OUR NEED IS. SO YOU SAID 12, 12,000 HOURS? YES SIR.

SO YOU NEED SIX AND A HALF FTES. THAT WOULD BE THE, THE FULL ASK, RIGHT? I WILL BE HAPPY WITH ONE. I'M NO STRANGER DOING MORE WITH LESS ONE ONE PERSON EMERGENCY MANAGEMENT DOES A LOT. WE ARE VERY ACTIVELY PURSUING OFFSETTING WITH SOFTWARES AND AUTOMATION VERY MUCH USING AI TO THE EXTENT THAT WE CAN AND ARE AVAILABLE TO USE AI TO OFFSET THOSE FTES OR AT LEAST ASPECTS OF THEM. WE HAVE PROGRESSED VERY FAR DOWN THAT ROAD IN THE INDUSTRY BOTH WHEN RICH WAS STILL HERE AND ALSO FOR ME REACHING OUT TO COLLEAGUES AND THINGS LIKE THAT AROUND THE COUNTRY WITH OTHER STATE AND FEDERAL AGENCIES OF HOW THAT WORKS FOR US, HOW WE CAN OFFSET THAT. WE ARE VERY FAR DOWN THE ROAD WITH USING OUR SITUATION AWARENESS TOOL OF EOSI OF OFFSETTING BOTH OUR OPERATIONS AS WELL AS OUR PLANNING AS WELL AS OUR ASSET MANAGEMENT, ALSO UTILIZING THOSE TOOLS FOR RECOUPMENT. SO YOU KNOW, EXAMPLE OF WHEN CHIEF MAYS SENDS A TEAM OUT ON A TEST MESS ASSIGNMENT ON HIS MUTUAL AID ASSIGNMENT.

THERE'S A LOT OF TRACKING OF DOCUMENTS AND FUNDS THAT THAT NEED TO BE HAPPENING. THIS TOOL THAT WE HAVE CAN ALL AUTOMATE THOSE THINGS TO AN EXTENT AND BRINGING THAT BACK WHILE THEY'RE IN THE FIELD, BRINGING THAT BACK TO US. IT'S NO DIFFERENT FOR IF, IF I WERE TO DEPLOY ONE OF OUR TEAM OUT TO ANYWHERE THROUGH OUR CONTRACTS, WHETHER IT'S IN THE STATE OR THE COUNTRY, THEY, THEY WILL HAVE REAL TIME COMMUNICATION WITH US HERE BACK AT, BACK AT THE AGENCY. BUT WE, WE ABSOLUTELY NEED THE HELP.

ANYTHING AT THIS POINT ONE PERSON ABSOLUTELY WOULD BE HELPFUL. BUT YES, IN, IN A PERFECT WORLD WE WOULD NEED SIX TO SEVEN. JUST A FEW MORE

[00:35:01]

FROM THERE IT CAN MOVE INTO A SHIFT SUPERVISOR OR A JUNIOR SUPERVISOR. FROM THERE IT IS A SENIOR SUPERVISOR WHICH ARE TRYING TO RECLASS THEIR NAME TO MANAGER AND FROM THERE IT GETS INTO UPPER MANAGEMENT.

QUESTION. SO PROBABLY FOR MR. FREEMAN, PUBLIC SAFETY OVERALL TENDS TO WORK PRETTY GOOD WITH, YOU KNOW, STRATEGIC. WE'RE LOOKING AT A 3% INCREASE THAT WE'RE TRYING TO FIND IN THE EXISTING TAX RATE FOR ALL PERSONNEL.

BUT WHEN YOU LOOK AT, AND IT'S NOT THAT EVERY DEPARTMENT DOESN'T HAVE A TEAM ENVIRONMENT, THEY DO, BUT WHEN YOU'RE RUNNING A LARGE TEAM THAT DEALS WITH TRAUMA, THERE'S A DIFFERENT LEVEL OF BURNOUT. SO THERE ALSO IS A DIFFERENT LEVEL OF SUPERVISION. AND THERE'S ALSO, TO A GREAT EXTENT, THERE'S. THERE'S A DIFFERENT CAMARADERIE AND RELATIONAL ASPECT TO IT. AND SO WE WOULD HOPE THAT THAT WOULD CONTINUE THROUGH THE ENTIRE ORGANIZATION. BUT WHERE IT HAS TO BE FOUNDATIONAL IS IN AREAS LIKE AECC. SO IN GIVING A DIRECTIVE OF, HEY, WE REALLY WANT YOU TO BUILD THE STRONGEST TEAM YOU CAN. AND THE WAY WE'RE HEARING YOU SAY YOU WOULD DO THAT BETTER IS THROUGH SUPERVISION. WHAT IF HE WAS ABLE TO TAKE THE OVERALL BUDGET AND THIS MIGHT EVEN EQUATE ON OVERTIME PAY AS WELL? COULDN'T WE BUILD IN A DIFFERENT LINE, ANOTHER LEVEL OF LEADERSHIP OVER THERE THAT WOULD ALLOW FOR SOME PAY RAISES AS A PROMOTION, NOT NECESSARILY JUST AN INCREASE THAT THEN WOULD ALLOW FOR GREATER SUPERVISION? SO THAT MUCH LIKE, YOU KNOW, COUNCILMAN TIPPS, YOU KNOW, STEPPING STATED YESTERDAY, A LOT OF OUR JOB IS ABOUT PERFORMANCE AND WE WANT TO REWARD HIGH PERFORMING. IT DOESN'T MEAN THAT OTHERS AREN'T HIGH PERFORMING, BUT THERE ARE THOSE THAT ARE WILLING TO COME IN EARLY, STAY LATE, WORK THE OT AND THEN, YOU KNOW, THERE NEEDS TO BE THE CAPITALISM IN IT. SO WHAT COULD WE DO IN AECC THAT WOULD CREATE A DIFFERENT LEVEL OF SUPERVISION? YEAH, WE CAN LOOK AT THOSE THINGS. MAX AND JAMIE, THE ASSISTANT DIRECTOR, THEY'VE BEEN WORKING ON KIND OF STRATEGIES OF IF YOU GROW THE STAFF, HOW WOULD YOU DO THE LEVELS OF MANAGEMENT TO DO THAT CAREER LADDER AND REWARD THOSE EMPLOYEES FOR MORE EXPERIENCE, GIVEN THE OPPORTUNITY TO SUPERVISE. SO WE CAN REVIEW THOSE. AND THEN AS PART OF OUR OVERHIRING PROCESS, LIKE MAX SAID, WE NEED TO ADJUST THOSE TO SEE WHERE IT FITS IN THE HIERARCHY SO WE CAN TAKE A LOOK AT THAT. WE'RE DOING THAT STRATEGICALLY IN BOTH DEPARTMENTS RIGHT NOW.

EVEN WITH EIGHT PEOPLE THERE'S STILL A STRUCTURE, AND I'M TRYING TO AT LEAST BREAK GLASS CEILINGS IN BOTH DEPARTMENTS.

TO YOUR POINT, MAYOR? YEAH, SO WE'LL WORK ON THAT. THEY'VE GOT, I THINK, MULTIPLE STRATEGIC PLANS AT THIS POINT THAT WE CAN EVALUATE AND TWEAK, KNOWING THAT WE HAVE THE SUPPORT FROM COUNCIL TO OVER HIRE AND MAKE SOME ADJUSTMENTS AND SEE WHAT WORKS BEST FOR THE GROUP. WELL, WE'LL WALK OUT OF THIS BUDGET WORKSHOP.

WE'LL PASS A BUDGET. WE'LL NEVER HEAR FROM YOU. RIGHT? YOU'LL JUST SHOW UP WHEN THE TORNADO HITS AND THE FIRE HAPPENS. AND YOU GUYS, Y' ALL WILL WORK 48 HOURS STRAIGHT AND WE'LL NEVER KNOW IT. SO. SO WHY DON'T WE NOT DO THAT? LET'S HAVE YOU COME BACK AT A COUNCIL MEETING IN THE FUTURE. LET'S HAVE YOU BRING IN A DISCUSSION ITEM FOR HERE'S MY STRATEGIC PLAN.

HERE'S WHAT YOU GUYS GAVE ME ONCE THE BUDGET'S ALL WORKED OUT, AND HERE'S HOW I'M USING IT.

HERE'S THE HEALTH OF OUR TEAM. YOU KNOW, HERE IS WHO OUR TEAM IS. YOU KNOW, WHEN WE HAD OUR FIRST FLOOD OVER THERE OR MY FIRST FLOOD, NOT AMARILLOS, BUT I GOT TO COME OVER AND, YOU KNOW, DO SOME RECOGNITION THERE.

BUT REALLY, WE DON'T SEE YOU GUYS OVER HERE AND YOU GET FORGOTTEN ABOUT.

AND SO BRING THE TEAM OVER SOMETIME, YOU KNOW, END OF THE YEAR OR IN BETWEEN, CATASTROPHE, IF YOU WOULD. AND THEN LET'S HEAR FROM YOU.

LET'S SEE HOW YOU'RE DOING ON, ON THOSE TWO VERY IMPORTANT ROLES. ANYTHING FURTHER, COUNSEL? OKAY, THANK YOU, SIR. THANK YOU. ALL RIGHT, NEXT UP IS MICHAEL KASHUBA TO TALK BUDGET HIGHLIGHTS FOR PARK. MAYOR AND COUNCIL.

MICHAEL KASHUBA, DIRECTOR OF PARKS JUST WANTED TO KIND OF GIVE A QUICK UPDATE ON WHERE WE'VE BEEN, WHERE WE'RE GOING, SOME OF THE BIGGER CAPITAL ITEMS AND SOME OF THE BIGGER SUPPLEMENTALS.

[00:40:01]

ON THE COST RECOVERY FRONT, TENNIS IS DOING EXTREMELY WELL.

WE ANTICIPATE THEM BEING IN THE BLACK AT THE END OF THE FISCAL YEAR. GOLF, WE ANTICIPATE BEING, IF NOT IN THE BLACK VERY CLOSE TO COST RECOVERY. WE DO HAVE SOME PROPOSED FEE INCREASES IN THE BUDGET, SO WE WOULD OBVIOUSLY RECOMMEND THOSE.

THAT'S GOING TO BE $2 PER ROUND AND THEN SOME INCREASES ON THE GOLF CARTS. BUT AGAIN, THAT CONTINUES TO MOVE GOLF IN THE POSITIVE DIRECTION WHEN IT COMES TO COST RECOVERY. SO WE'RE VERY HAPPY WITH THE PROGRESS THAT THE TEAM HAS MADE THERE, GOING FROM BASICALLY $2 MILLION UPSIDE DOWN TO BREAKING EVEN. SO. AND THEN OBVIOUSLY, WE CONTINUE TO WORK ON ATHLETICS. SO ALL. WE DON'T HAVE ANY FEE INCREASES FOR TENNIS. WE DO HAVE FOR ATHLETICS. SO THERE'S A SMALL FEE FOR FIELD RENTALS FOR GAMES AND PRACTICES. AND THEN WE ALSO HAVE GONE UP A LITTLE BIT ON SOME OF THE LEAGUE FEES. SO THOSE ARE ALL IN THERE AS SUPPLEMENTALS IN TERMS OF THE FEE INCREASES. SO WE WOULD RECOMMEND ALL OF THOSE TENNIS, BECAUSE IT'S DONE SO WELL. WE WOULD SAY JUST HOLD TIGHT AND WE'LL CONTINUE TO MONITOR IT AND THEN MAKE THOSE NECESSARY CHANGES AS WE KIND OF MOVE FORWARD. AS I MENTIONED, WHEN WE PUT TOGETHER OUR CAPITAL LIST THIS YEAR, WE REALLY HAD SOME DIFFERENT FOCUSES. NUMBER ONE WAS MAINTAINING THE EXISTING. SO YOU'LL SEE PARKS. E&I OBVIOUSLY, IS GOING TO BE OUR HIGHEST REQUEST.

THAT'S THAT ONGOING INFRASTRUCTURE MONEY WHERE WE CAN GO AND MAKE THOSE IMPROVEMENTS IN THE PARKS. WE ALSO HAVE THE WARFORD POOL IS THE SHELL IS THE PLASTER IS REALLY STARTING TO FALL APART. SO THAT'S ABOUT 250,000. WE HAVE ABOUT 1500 PEOPLE A MONTH USE THAT POOL. ACTUALLY IN JUNE, WE HAD 04,600 PEOPLE THAT ACTUALLY USE THAT POOL DURING THE MONTH.

THE OTHER KIND OF AREAS THAT WE KIND OF GROUPED THEM IN WAS THE CONTINUOUS IRRIGATION IMPROVEMENT. OBVIOUSLY, THERE'S BEEN A HIGH FOCUS ON IRRIGATION THIS YEAR. ONE OF THE THINGS THAT WE'RE PROPOSING IS AN INCREASE ON THE IRRIGATION LINE ITEM.

THE IRRIGATION LINE ITEM IN PARK MAINTENANCE IS CURRENTLY BUDGETED AT 125, AND WE'RE ALMOST AT 300,000 ALREADY THIS YEAR JUST BECAUSE OF ALL THE REPAIRS THAT HAVE NEEDED TO BE MADE. ALONG WITH THAT, THERE'S A SUPPLEMENTAL TO START BUYING SOME ADDITIONAL SEED.

BECAUSE A LOT OF THOSE AREAS THAT WERE IRRIGATING A FEW YEARS AGO DURING COVID THE WEEDS KIND OF TOOK OVER SOME AREAS. AND SO AS WE'RE KILLING OFF THOSE WEEDS, WE'RE STARTING TO SEE BARE SPOTS. SO SOME ADDITIONAL FUNDING JUST TO GET SOME SEED TO KIND OF FILL IN THOSE SPOTS THAT ARE KIND OF BARE. ONE OF THE THINGS THAT WE'RE PROPOSING AS A SUPPLEMENTAL, IT SHOWS AS A NEGATIVE, IS BRINGING SOME IRRIGATORS IN HOUSE. THAT WAS ONE OF THE CHALLENGES OBVIOUSLY WITH THE CONTRACT IS WHEN THERE'S AN IRRIGATION ISSUE, WE'RE RELYING ON A CONTRACTOR TO GO FIX IT. CURRENTLY WE HAVE FOUR IRRIGATORS THAT COVER OUR ENTIRE PARKS. SO WE WOULD BE LOOKING TO BRING SIX IRRIGATOR, SIX ADDITIONAL IRRIGATORS BACK IN HOUSE. BUT WHAT WE WOULD DO IS THAT MONEY WOULD COME OUT OF THE LANDSCAPE MAINTENANCE CONTRACT. SO CURRENTLY THOSE SERVICES ARE PROVIDED IN THAT CONTRACT. WHAT WE WOULD DO IS BACK OUT THE AMOUNT FOR THOSE IRRIGATORS OUT OF THAT CONTRACT. SO WE WOULD JUST NET IT OUT AT A ZERO. AND THEN AS WE KIND OF MENTIONED, WE'RE CURRENTLY HAVE THAT TEMPORARY LANDSCAPE MAINTENANCE AGREEMENT THAT IS SOMETHING THAT WE WILL BE REBIDDING THIS FALL. THERE ARE SOME. THERE IS A SUPPLEMENTAL FOR SOME ADDITIONAL PROPERTIES TO BE ADDED TO THAT CONTRACT.

SO THOSE ARE PROPERTIES THAT THE CITY HAS ACCRUED OVER THE LAST YEAR OR THE LAST COUPLE YEARS THAT WE WOULD ADD TO THAT LANDSCAPE MAINTENANCE.

AND THEN SOME OF THE OTHER GROUPS OF PROJECTS THAT WE HAD PUT IN FOR CAPITAL, OBVIOUSLY IRRIGATION. SO CONTROL, CENTRAL CONTROL. OUR IRRIGATORS CURRENTLY HAVE TO GO OUT TO EACH PARK. AND I'LL GIVE AN EXAMPLE. JOHN STIFF MAY HAVE 10 DIFFERENT CONTROLLERS. SO THEY'RE HAVING TO MANUALLY SET THOSE CONTROLLERS. THERE'S NO WAY TO DO IT REMOTELY FROM OUR MAIN OFFICE. SO WE'RE PROPOSING THAT WE WOULD KIND OF UPDATE THE TECHNOLOGY WHERE WE CAN TAKE A QUICK LOOK. I CAN'T TELL YOU HOW MANY PARK STAFF.

STAFF HAVE GONE OUT TO. AND THE CONTROLLERS ARE OFF, AND IT'S NOT STAFF THAT'S TURNING THEM OFF. SO WE WOULD LIKE TO HAVE BETTER EYES ON THAT FROM A DISTANCE WHERE WE CAN MONITOR THAT AND MAKE ADJUSTMENTS AS NECESSARY. WILL THOSE HAVE. WELL, THOSE HAVE RAIN SENSORS TOO? YEAH. SO A LOT OF THE NEW TECHNOLOGY WITH THOSE CENTRALIZED CONTROLLERS WILL AUTOMATICALLY HAVE GOT SOFTWARE THAT WILL ADJUST FOR RAIN, FREEZE EVERYTHING THAT GOES WITH IT. SO AGAIN, WE WOULD BE LOOKING AT SOME PUMP STATIONS. THERE'S SOME. SOME PARKS THAT JUST

[00:45:01]

THAT'S HILLSIDE SCHOOL PARK.

HISTORICALLY, THE CITY'S MAINTAINED IT EVEN THOUGH WE DON'T HAVE AN AGREEMENT. SO WE WOULD NOT RECOMMEND THAT BEING INCLUDED IN THAT PROJECT. BUT THE OTHER PARKS ARE ALL CITY PARKS OR WE MAINTAIN THE SCHOOL PORTION OF IT. NOW, WHEN YOU SAY YOU DON'T RECOMMEND HAVING, IS IT INCLUDED IN HERE RIGHT NOW? SO IN THE IRRIGATION PUMP STATIONS, WE HAVE A LINE ITEM OF 350 AND HILLSIDE IS ABOUT 45,000. SO THE REQUEST FOR THE IRRIGATION PUMP STATIONS WOULD BE ABOUT 305. SO THAT WOULD COME DOWN A LITTLE BIT. SO I WOULD SAY MAKE THAT ADJUSTMENT FOR SURE. YEAH. MICHAEL, HOW DID THE CONTROLLERS GET TURNED OFF? ARE THEY SECURE OR IS IT JUST CITIZENS GOING OUT TURNING THEM OFF, OR KIDS OR. WE DON'T KNOW.

UNFORTUNATELY, A LOT OF THOSE CONTROLLERS HAVE THE SAME KEY.

AND SO UNLESS WE GO IN AND MANUALLY CHANGE EACH KEY ON THAT, WHICH WOULD BE QUITE A PROCESS, OR SECURE THEM A DIFFERENT WAY, EVERY IRRIGATOR IN TOWN HAS A KEY TO THOSE CONTROLLERS.

INTERESTING. THERE'S JUST A STANDARD, INDUSTRY STANDARD KEY OR SOMETHING. YEAH. SO WE'VE GONE OUT TO SOME PARKS WHERE WE'VE SEEN VALVES TURNED OFF.

WE'VE SEEN DOUBLE CHECKS TURNED OFF. WE'VE SEEN, I MEAN, YOU NAME. SO WE WANT TO GET SOME BETTER EYES SO WE CAN SEE IF WATER'S FLOWING. IF WATER'S NOT FLOWING, YOU KNOW, OBVIOUSLY WE CAN SEND SOMEBODY OUT TO MAKE THOSE ADJUSTMENTS. SO THAT'S SOMETHING THAT WE WOULD RECOMMEND. COUNCILMAN SIMPSON BROUGHT THIS UP YESTERDAY. THE DISCUSSION ABOUT RESTROOMS. WE WOULD PROPOSE REMOVING THE RESTROOMS THAT ARE ON SCHOOL PARKS. WE'VE ACTUALLY SENT OVER A JOINT RESOLUTION TO THE SCHOOL DISTRICT FOR CONSIDERATION FOR US TO REMOVE THOSE RESTROOMS FROM THOSE SCHOOL PARKS. AND THEN WE ALSO PUT SOME MONEY IN IF COUNCIL SO CHOSE TO START REPLACING SOME OF THOSE RESTROOMS IN THE PARKS. WE HAVE SOME REQUESTS FOR PLAYGROUNDS. THE PLAYGROUNDS WE PUT IN THERE ARE IN VERY BAD CONDITION. AGAIN, THERE'S FIVE THAT ARE BEING PROPOSED. THREE OF THOSE ARE ON SCHOOL PARKS THAT WE WOULD RECOMMEND. THE PARKS MASTER PLAN RECOMMENDS TERMINATING THOSE AGREEMENTS. SO WE'VE GOT ONE AT LANDRIGAN, HILLTOP AND MARGARET WILLS THAT NEED TO BE REPLACED. THOSE ARE CURRENTLY UNDER THOSE MAINTENANCE AGREEMENTS THAT NEED TO BE REPLACED.

BUT AGAIN, WE'RE HAVING CONVERSATIONS ABOUT THOSE AGREEMENTS. SO WE WOULD RECOMMEND, OBVIOUSLY SUNRISE, WHICH IS ONE THAT WE WOULD FUND THE CITY PORTION AND THE ONE AT MEMORIAL. AND THEN THERE'S SOME, WHAT I WOULD SAY, PLANNING AHEAD PROJECTS. WE PUT IN CAPITAL FOR THE AQUATIC REPLACEMENT JUST TO START DESIGN ON IT.

WITH COUNCIL'S RECENT GUIDANCE ON THE AQUATIC FEASIBILITY. I THINK WE JUST PUT THAT ONE ON HOLD FOR A YEAR. THAT'S SOMETHING WE COULD COME BACK BASED ON WHAT THE FEASIBILITY STUDY SAYS. THE PARKS MASTER PLAN. COUNCIL HAS GIVEN PREVIOUS GUIDANCE ON THAT.

WE'LL PUT THAT ONE ON HOLD AS WELL. AND THEN ONE OF THE THINGS THAT WE PUT ON HERE, JUST FOR COUNCIL'S VISIBILITY, IS THAT ARTIFICIAL TURF. I KNOW THERE'S BEEN SOME CONVERSATIONS IN THE PAST ABOUT WHAT WOULD IT TAKE TO TURF SOME OF THOSE FIELDS.

SO WE JUST PUT THAT IN MORE AS A PLANNING NUMBER, NOT AS OPPOSED TO THAT NEEDS TO BE FUNDED IMMEDIATELY. SO THERE'S. THERE'S THOSE THREE PROJECTS THAT WE WOULD SAY ARE PLANNING AHEAD. SO IT'S THE AQUATIC FEASIBILITY OR THE REPLACEMENT, THE MASTER PLAN AND THEN THE ARTIFICIAL TURF.

SO THOSE ARE JUST ITEMS WE HAVE AND THAT'S UNDER WHICH LINE ITEM WE HAVE.

THOSE ARE WHAT WE HAD SUBMITTED TO THE CITY MANAGEMENT. OH, OKAY.

BUT THEY'RE NOT LINE ITEM HERE.

OKAY. NO, THIS IS OUR WORK FROM LATE LAST NIGHT TO TRY AND COME WITH A CONSTRAINED RECOMMENDATION.

YEAH, I KNOW THIS IS NOT FOR TODAY, BUT CAN WE HAVE A REPORT OUT ON THAT OR HAVE A DEEPER DIVE IN THE ARTIFICIAL TURF AND WHAT THE ROI LOOKS LIKE ON THAT FOR LONG TERM? WE HAVE NOT DONE THAT YET. IN TERMS OF WHAT THE TRUE SIGNIFICANT IMPACT TO THE CITY COULD BE IF WE PUT THE ARTIFICIAL TURF AT SOME OF THESE LOCATIONS FOR THE LARGER EVENTS AND THINGS. WHAT WE COULD DO IS WE'VE GOT THE NUMBER. SO WE'VE ACTUALLY WORKED WITH THE COMPANY TO GET US VERY SPECIFIC NUMBERS FOR EACH OF THOSE FIELDS. SO WE'VE GOT NUMBERS FOR. IF WE WERE TO JUST DO THE INFIELDS, IF WE WERE TO DO THE ENTIRE FIELDS THEMSELVES, OBVIOUSLY WE WOULD KNOW WHAT OUR STAFFING COSTS ARE. I THINK THE ONE THAT WE WOULD HAVE TO WORK WITH THE CBB IS THE HOTEL STAYS, BECAUSE OBVIOUSLY THE MORE.

AND THAT'S NOT GOING TO SHOW UP IN THE CITY BUDGET, BUT OBVIOUSLY THAT'S REVENUE THAT COMES INTO THE CITY. SO WE CAN WORK WITH CVB TO LOOK AT THOSE FINANCIAL IMPACTS ON HOTEL STAYS. YOU KNOW, NOT. NOT NOW, BUT JUST. I MEAN, IF WE COULD LOOK AT THAT IN THE FALL, THAT WOULD BE. I THINK THAT WOULD GIVE US A LOT OF CLARITY, MICHAEL. DO. DO WE SEE THAT THERE'S A BIG VOLUME DISCOUNT IN THAT TURF? IN OTHER WORDS, COULD WE TACK ON TO WHAT THEY'RE DOING AT KIDS INC. RIGHT NOW AND USE THEIR BUYER? WOULD IT BE SIGNIFICANTLY LESS? OR HAVE WE EVEN LOOKED INTO THAT? I KNOW THEY'RE A DIFFERENT ENTITY, BUT MAYBE WE COULD. YEAH, WE COULD LOOK INTO IT. I THINK WE'VE GOT TO FOLLOW OUR PROCUREMENT LAWS.

SO I THINK THE DOLLAR THAT BIG, WE WOULD HAVE TO PROBABLY PROCURE IT OURSELVES.

BUT I THINK WITH LARGER VOLUME, YOU'RE PROBABLY GOING TO GET MORE INTEREST AND YOU'RE PROBABLY GOING

[00:50:01]

BUT THOSE ARE THE BUDGETARY ESTIMATES THAT WE HAVE AT THIS POINT. SO THANK YOU.

SO WITH YOUR BATHROOM PROPOSAL AT THE END OF ALL THIS, ANY BATHROOM THAT IS STILL STANDING WILL BE OPEN? YES. SO CURRENTLY THE ONLY ONES THAT ARE CLOSED ARE THE SCHOOL PARK RESTROOMS, WHICH WERE AT THE DISCRETION OF COUNCIL. SO A COUPLE BUDGETS AGO, WE HAD PROPOSED KEEPING REGIONAL PARKS OPEN, THE RESTROOMS AND REGIONAL PARKS AND COMMUNITY PARKS, CLOSING THE ONES IN NEIGHBORHOOD PARKS AND SCHOOL PARKS. AT THAT TIME, THE COUNCIL RECOMMENDED THAT WE KEEP THE ONES IN REGIONAL COMMUNITY AND NEIGHBORHOOD OPEN, KEEP THE ONES AT SCHOOL PARKS CLOSED. SO THAT'S BEEN THE GUIDANCE THAT THE DEPARTMENT HAS OPERATED ON FOR THE LAST COUPLE YEARS. SO YES, WE CURRENTLY OPEN ALL OF THOSE OTHER ONES WITH THE EXCEPTION OF, YOU KNOW, SECURITY, SEWER ISSUES, PLUMBING ISSUES, OR OTHER UNFORESEEN ISSUES.

BUT OUR GOAL IS TO KEEP THOSE ONES OPEN. AND THE OTHER ITEM WOULD BE TO START REPLACING SOME OF THOSE. SOME OF THOSE STRUCTURES ARE IN REALLY POOR CONDITION TO JUST START ADDRESSING THAT.

SO WE'RE ACTUALLY WORKING WITH FACILITIES ON KIND OF COMING UP WITH A SYSTEM WIDE DESIGN FOR THAT THAT I THINK WE COULD REPLICATE THROUGHOUT THE PARK SYSTEM. AND THIS FOLLOWS THE STRATEGY THAT WE'VE HAD IN PARKS AND RECREATION.

AT LEAST I'VE BEEN OVER HERE.

WE'RE INVESTING IN THE LARGER PARKS BECAUSE MORE PEOPLE USE THEM, WE CAN SERVE MORE PEOPLE, WE CAN INVEST THE MONEY THERE.

WE JUST DON'T HAVE THE RESOURCES TO PROVIDE EVERYTHING IN EVERY PARK IN THE CITY.

CORRECT. AND THAT'S GUIDANCE THAT COMES FROM THE PARKS MASTER PLAN, WHERE IT REALLY TALKS ABOUT SCALING BACK AND FOCUSING, WHERE WE PUT ASSETS. SO PUTTING BIGGER, BETTER ASSETS IN THOSE LARGER PARKS AND MAYBE SCALING BACK IN SOME OF THE SMALLER PARKS, IT ALLOWS US TO FOCUS AND GET BETTER PRODUCTS, BUT IT ALSO HELPS US MANAGE OUR STAFF TIME.

BECAUSE IF WE'RE HAVING STAFF GOING TO 15, 16 DIFFERENT SPLASH PADS, IT'S A LOT DIFFERENT THAN GOING TO TWO OR THREE. SO AGAIN, THAT'S PART OF THE REASON WE WANTED TO LOOK AT THAT AS A PART OF THE AQUATIC FEASIBILITY, WAS LOOKING AT SPLASH PADS ALONG WITH THOSE OTHER POOLS.

SO GOOD. I'M ALL FOR HANDLING THE BATHROOM SITUATION. SO THE SCHOOL DISTRICT OWNED RESTROOM SITUATION, YOU FEEL LIKE IT'S GOT A GOOD STRATEGIC PLAN NOW, RIGHT? I LIKE THIS PLAN.

OKAY. ALL RIGHT. SO THE CITY OWNED RESTROOMS YOU'VE MADE A LOT OF PROGRESS ON, AND THEY'RE OPEN AND WE'RE UPDATING THEM AND COMMUNITIES ARE PAINTING THE OUTSIDE OF THEM AND THEY LOOK BETTER AND CONCESSIONS LOOK GOOD OUT THERE AT THE RECREATION FIELDS. ALL SORTS OF GOOD PROGRESS.

RIGHT. WELL. AND THAT'S ONE OF THE THINGS THAT I MENTIONED.

MENTIONED PREVIOUSLY WITH THAT PARK SCENE. OUR GOAL IS TO KIND OF FRESHEN STUFF UP. SO IT MAY BE REPAINTING THE RESTROOMS, LOOKING AT SOME FIXTURES, THINGS LIKE THAT. WHERE IT'S NOT THOSE BIGGER PROJECTS.

IT'S MORE FOCUSED ON THE DETAILS. SO WHAT IS THE.

SORRY, WHAT IS THE E&I THAT'S IN YOUR BUDGET FOR PARKS? IT'S CURRENTLY 922 IS WHAT'S BEING PROPOSED. AND THAT'S IN THE BUDGET? NO, IT'S STILL.

WE. WE HAVE TO APPROVE IT. WE GO AHEAD AND PUT IT ON THE LIST. BUT IT COMES OUT OF THAT 11.9 MILLION. NOW WHY IS THAT? SO IT'S NOT IN HIS BUDGET? NO, BECAUSE WE.

WE JUST DO IT AS A CIP AND THEY BASICALLY DO SUB PROJECTS AS THE NEEDS GO. WE HAVE THAT ALONG WITH MULTIPLE DEPARTMENTS.

TRAFFIC HAS AN E&I. FACILITIES HAS AN E&I. YEAH. AND SO I SEE THAT ON KIND OF THE LIST WHERE IT COMES OUT OF THAT 12 MILLION CIP.

RIGHT. BUT THEN HISTORICALLY THAT'S JUST BEEN THE WAY WE'VE HAD TO FUND IT WITH ONE TIME FUND BUILDING IT INTO OPERATIONS. IF YOU GO THROUGH THE PARKS AND REC COST HERE UNDER LEISURE, THERE'S NO E&I BUILT INTO YOUR BUDGET. CORRECT.

JUST COMES OUT OF. COMES OUT OF EXCESS REVENUES EVERY YEAR.

RIGHT. AS A. AS AN ALLOCATION.

YEAH. WE USUALLY TAKE THE E&IS OFF THE TOP OF THE ALLOCATION TO START WITH. AND THEN EVERYTHING ELSE IS. OKAY.

OTHER PROJECTS. CAN WE JUMP INTO THE BUDGET? IN. IN, LIKE WHY? IT'S. WHY MAYBE RECOGNIZED LIKE IT IS. SO IF YOU LOOK AT PARKS AND REC.

434, THAT'S THE PAGE. YOU KNOW, WE'VE GOT AN ACTUAL OF A MILLION. THIS IS JUST ADMIN. THEN IN 25 ADMIN SHOWS 6.7 MILLION. THEN IT DROPS BACK DOWN TO LIKE 1.2. WHAT ARE WE DOING THERE? LIKE, WHY DID THAT JUMP UP SO MUCH? I THOUGHT IT WAS OPERATIONS. MAYBE WERE BEING DONE UNDER ADMIN AT THAT TIME.

BUT THEN IF YOU FLIP OVER TO OPERATIONS, WHICH IS THE MAINTENANCE, MORE OR LESS AT 466, WE STILL HAD 10.2 MILLION IN ACTUALS. SO A LITTLE OVER BUDGET IN 25 ON BOTH. IS THAT RIGHT WHAT I'M THINKING? AND I DON'T KNOW THE ANSWER.

THIS WOULD BE A FINANCE QUESTION, BUT I THINK IT'S PROBABLY THE ONE. SOME

[00:55:01]

WELL, THE CONTRACTUAL SERVICES, YOU'RE SAYING ON PAGE 466 OR OVER ON. OH YEAH. SO CONTRACTUAL SERVICES ARE LISTED 20 TWICE THEN THAT'S A GOOD CATCH. WELL, YEAH, IT'S 5.6 MILLION. THAT'S YOUR DIFFERENCE. WELL, WHAT IS THAT? YOU KNOW, MS. LOLA, IF YOU GOT THAT, OR MAYBE SOMEBODY IN FINANCE, WHAT COMES OUT OF THAT? I THINK THAT'S YOUR MOWING CONTRACTS, RIGHT, MICHAEL? NO, THEY COME OUT OF PARK MAINTENANCE. THAT 6 MILLION, I'M NOT SURE WHAT THAT NUMBER WAS. I JUST WANT TO MAKE SURE WE DON'T HAVE CIP MONIES FUNNELING BACK THROUGH ACTUAL ON LIKE WHAT IS O&M? RIGHT. SO IF YOU'LL GO TO PAGE 434, LOOK AT THE ACTUALS, I'M ASSUMING THOSE COME FROM THE ACTOR. RIGHT. AND SO EXPENDITURES ARE 6.7 MILLION IN 25 AND THEN WE'RE PROJECTING THIS YEAR TO BE AT 1.2. BUT THE DIFFERENCE IS THAT CONTRACTUAL SERVICES NUMBER OF 5.5. THAT'S A GOOD CATCH. SO. SO IF YOU FLIP OVER TO PAGE 466, YOU'RE GOING TO SEE THE CONTRACTUAL SERVICES AT 6.8 MILLION FOR THE ACTUAL N25. AND THEN LOOK TO BE IN LINE THIS YEAR, JUST TRYING TO FIND AN EXTRA $5 MILLION THERE IF POSSIBLE.

BUT THAT'S NOT CONSIDERED ADMINISTRATIVE COSTS, RIGHT? SHOULDN'T BE CATEGORIZED.

SHOULDN'T HAVE CONTRACTOR SERVICES UNDER ADMIN. RIGHT, YOU'VE GOT A BUDGET FOR ADMIN. THAT'S ALL IN HOUSE. BECAUSE IF YOU GO TO PAGE 387, IT SHOWS THAT 6.6 MILLION FOR 24, 25 AS ADMINISTRATIVE COSTS. JUSTIN'S WORKING ON THIS. I THINK WE MAY NEED A MOMENT HERE TO BRING THE ANSWER TO YOU SO WE CAN BRING THAT BACK TO YOU. SO KASHUBA, ON THAT. LET'S ASSUME WE HAVE AN ERROR MAYBE IN HOW THE BUDGET GOT WRITTEN DOWN. AND IF WE DID RECOGNIZE SOME CASH FLOW THAT WOULD COME THROUGH THAT GENERAL FUND, THAT WOULD BE A BENEFIT.

BUT THEN IF NOT, WE'RE STILL LOOKING AT YOUR ASKS. AND SO YOU NEED $922,000 AGAIN, THAT 5.7, THAT'S A PRIOR YEAR ACTUAL, THAT'S NOT EXISTING. SO THAT WAS A YEAR OR TWO AGO. SO YEAH, WE CAN FIGURE OUT WHAT THAT WAS, BUT WE'LL GET BACK TO YOU. SO.

I WOULD JUST SAY, I GUESS MR. PATH, IF IT WAS RECOGNIZED AS A, AS AN ENTRY THAT WAS DONE IN ERROR, THAT COMES THROUGH TO THAT CASH FLOW. RIGHT? COMES THROUGH TO THE GENERAL FUND IN CURRENT YEAR. IF IT WAS AN ERROR, IT'D BE PART OF THAT ONE TIME GENERAL FUND CAPITAL NUMBER.

BUT THEN IF IT'S NOT IN ERROR, WE WOULD. BUT IT WOULD HAVE BEEN THE CURRENT YEAR BUDGET. WELL, WE WOULD JUST NEED TO SEE WHAT THE EXPLANATION IS.

IF IT'S. IF WE SPENT WHAT WOULD BE 11 MILLION DOLLARS IN CONTRACTOR SERVICES IN THAT YEAR. JUSTIN'S WORKING ON THAT RIGHT NOW. SO IF WE CAN COME BACK TO THAT ONCE HE'S DONE, WE CAN GET SOME OTHER THINGS DONE HERE AND WE CAN CIRCLE BACK TO THIS REAL GOOD. SO THE E&I, WHAT ARE YOU GOING TO DO WITH THAT MONEY? WHAT ALL CAN WE GET DONE WITH THAT? SO THAT'S A LOT OF THOSE LITTLE PROJECTS. SO AGAIN, REPLACING A LOT OF THE SIGNS GOING IN THERE, PAINTING FACILITIES, CLEANING UP THOSE FACILITIES.

SO IT'S GOING TO BE A LOT OF THOSE TYPES OF PROJECTS.

AND THEN ANYTHING THAT COMES UP THAT'S KIND OF MORE ON THE EMERGENCY SIDE, SOMETHING WE HAVE TO ADDRESS IS SOMETHING THAT WILL GENERALLY COME OUT OF THERE. AND I WAS THINKING WE HAD AN E&I BUILT INTO YOUR ACTUAL BUDGET EVERY YEAR, BUT WE DON'T. IT'S JUST COMING OUT. OKAY, CAN YOU TELL US ANYTHING ELSE ABOUT ANY OF YOUR OTHER REQUESTS THAT WERE SUPPLEMENTAL? I MEAN, I KNOW KIND OF THE. I GUESS.

HERE, LET ME, LET ME LEAD INTO THIS THE KIDS INC.

FACILITY. ALL THE TURF THAT'S GOING OUT THERE, WHAT DOES THAT ALLEVIATE FOR YOU GUYS IN WEAR AND TEAR ON FIELDS? WHAT DOES THAT OPEN UP TO FOR AMARILLO? YOU'RE THINKING ABOUT TOURNAMENTS AND STUFF LIKE THAT. SO. SO REALLY LOOK AT AN ROI ON THAT. YOU KNOW, I THINK IT WAS PRESCOTT THAT SAID YOU COULD GIVE US SOMETHING BACK THREE, FOUR YEARS FROM NOW WHEN AMARILLO IS MUCH EASIER TO TRAVEL TO. KIDS SPORTING EVENTS HAVE GROWN. THAT

[01:00:01]

YEAH. SO I THINK WHEN IT COMES TO ATHLETICS, OBVIOUSLY WE'RE SEEING HUGE MARKETS ACROSS THE COUNTRY FOR YOUTH SPORTS TRAVELING, WHICH IS OBVIOUSLY THE IMPETUS BEHIND THAT PROJECT. I THINK THE CHALLENGE IS WHEN YOU START DOING THOSE BIGGER TOURNAMENTS, LIKE WHEN WE WORK WITH KIDS INC. WHICH WAS TEXAS PANEL TO YOUTH SPORTS FOUNDATION, WHICH ROLLED UNDER KIDS INC.

WHEN THEY DO THOSE BIGGER TOURNAMENTS, THEY'RE USING EVERY COMPLEX IN TOWN. SO THEY'RE NOT JUST USING JOHN, THEY'RE USING SOUTHEAST, THEY'RE USING MARTIN ROAD, THEY'RE USING RICK KLEIN, THEY'RE USING EVERY AVAILABLE FACILITY WE HAVE.

AND SO IF YOU'RE STARTING TO LOOK AT HOSTING THOSE BIGGER TOURNAMENTS, THOSE BIGGER REGIONAL TOURNAMENTS, OBVIOUSLY TURF PLAYS AN ADVANTAGE. I THINK ONE OF THE THINGS THAT WE'VE SEEN IS A LOT OF SURROUNDING AREAS, HOBBS HAS TURF. MIDLAND HAS BUILT A BUNCH OF TURF FIELDS. A LOT OF TEAMS ARE GOING TO COMMIT MORE TO THOSE TYPES OF TOURNAMENTS BECAUSE THERE'S.

THERE'S A LESS LIKELIHOOD THAT THOSE EVENTS ARE GOING TO BE CANCELLED DUE TO RAIN OR OTHER ISSUES. YOU KNOW, ARTIFICIAL TURF, IT RAINS, YOU'RE PLAYING ON IT IN 10 MINUTES. WHEREAS NATURAL GRASS, OBVIOUSLY, IT TAKES A LITTLE BIT LONGER FOR THAT TO ABSORB. I THINK THERE ARE SOME PROS FOR KEEPING NATURAL GRASS.

BUT I ALSO THINK FROM A PLAYABILITY, FROM A MARKETING STANDPOINT, I THINK ARTIFICIAL TURF IS THE WAY TO GO. IT SAVES ON, OBVIOUSLY, STAFF TIME. IT SAVES ON IRRIGATION, WATERING. AND AGAIN, I THINK IT CREATES MORE OF A CONSISTENT ENVIRONMENT WHERE PEOPLE KNOW WHAT TO EXPECT. I DO THINK THAT IF WE MOVE THAT DIRECTION, EVENTUALLY WE'RE GOING TO HAVE TO UPDATE OUR RESTROOM CONCESSION FACILITIES JUST BECAUSE THAT INFRASTRUCTURE IS OLD. AND WHEN YOU. THE EXAMPLE WE'LL USE IS AT MARTIN ROAD, WHEN YOU HAVE A LITTLE GIRLS TOURNAMENT, THEY'RE LINED UP OUT THE DOOR. THERE'S NOT ENOUGH FACILITIES FOR PEOPLE TO USE. SO I THINK IF THAT IS THE DIRECTION WE GO WITH THE, YOU KNOW, IMPROVED TURF FACILITIES, I THINK ONE OF THE THINGS WE'LL HAVE TO EVENTUALLY LOOK AT IS HOW DO YOU START TO ADDRESS THOSE RESTROOM BUILDINGS AS WELL? BUT AGAIN, THAT COULD BE THE REVENUES THAT COME IN FROM THOSE TOURNAMENTS. SO, AGAIN, I THINK IT'S A GOOD THING. I THINK THE CHALLENGE IS THE MONEY THAT COMES IN IS NOT NECESSARILY GOING TO SHOW UP IN THE CITY BUDGET. IT'S NOT GOING TO BE A LINE ITEM UNDER PARKS WHERE ALL THE ECONOMIC IMPACT SHOWS UP. IT'S GOING TO BE IN SALES TAX AND OTHER THINGS THAT ARE GOING TO BE INDIRECTLY COMING TO THE CITY. SO, YEAH, WE'RE HAPPY TO PUT THAT TOGETHER. WE'VE DONE A STUDY A COUPLE YEARS AGO LOOKING AT ATHLETIC FACILITIES, WHAT THE COST WOULD BE TO UPDATE THEM AND RENOVATE THOSE.

AND WE'D BE HAPPY TO SHARE THAT WITH THE COUNCIL. OKAY, LET ME CATCH JUST A FEW MORE BEFORE WE. WE JUMP. SO SENIORS ARE IN THERE IN THE BACK. LIKE, THERE'S.

THERE'S $111,000 THAT WENT OUT TO THOSE PROGRAMS. I'M STILL AN ADVOCATE FOR PUTTING, YOU KNOW, I THINK THE CITY SHOULD BUDGET A HALF MILLION DOLLARS A YEAR FOR JUST SENIORS. RIGHT. AND THEN I DON'T HAVE A GOOD MECHANISM TO PUSH THAT THROUGH.

I WISH WE HAD KIND OF LIKE A SMALLER COMMUNITY TYPE FEEL SOMEWHERE WHERE THERE WASN'T A SENIOR CITIZEN CENTER THAT HAD BEEN THERE FOR 50 YEARS. AND IT WOULD MAKE IT EASY FOR THE SENIOR CITY TO, YOU KNOW, UTILIZE THAT STRUCTURE THERE.

WE DON'T HAVE THAT. RIGHT. SO WE'RE TRYING TO WORK THROUGH THE WARFORD AND SERVICES. AND SO WE'VE GOT BUDGETED 100,000. LIKE, IS THAT ENOUGH FOR THE SENIORS TO GET ANYTHING? AND THEN WHAT ARE WE DOING WITH THAT HUNDRED OR ARE WE GETTING A LOT OF BANG FOR OUR BUCK WITH IT? I WOULD SAY YES, WE'RE GETTING A LOT OF BANG FOR OUR BUCK AND I WOULD SAY THAT THOSE NUMBERS CONTINUE TO GROW. I'D BE HAPPY TO GET THOSE TO COUNCIL. WE CONTINUE TO SEE MORE AND MORE PEOPLE USING THE WARFORD. WE ALSO HAVE STARTED PROVIDING LUNCH THROUGH SOME PARTNERSHIPS AT THE FACILITY. SO THAT'S NOT SHOWING UP AS A COST TO THE CITY, BUT THAT'S SOMETHING WE ARE PROVIDING OUT THERE. SO WE'RE DOING LUNCHES OUT AT THE FACILITY.

WE'VE GOT A REALLY EXCELLENT SENIOR SERVICES COORDINATOR WHO'S REALLY HELPED TO NOT ONLY DO SOME MORE COMMUNITY ENGAGEMENT, BUT ALSO TO GROW THE MEMBERSHIP. SO WE'RE STARTING TO SEE MORE AND MORE PEOPLE.

WE'RE STARTING TO SEE A LOT OF COLLABORATION. SO WE'LL HAVE EVENTS WITH THE WESLEY, SO THE SENIORS FROM WARFORD WILL GO OVER AND HAVE A FRIENDLY COMPETITION WITH THE FOLKS OVER AT WESLEY AND VICE VERSA.

SO WE'RE STARTING TO SEE SOME OF THOSE RELATIONSHIPS BEING FORMED BETWEEN THE DIFFERENT SENIOR ORGANIZATIONS. THE CHALLENGES FOR WARFORD, WE'VE GOT THAT ONE AREA THAT USED TO BE KIND OF THE DAYCARE AREA. THAT'S BASICALLY TWO CLASSROOMS THAT HAVE BEEN CONVERTED TO THE SENIOR AREA. SO THERE'S GOING TO BE LIMITATIONS

[01:05:01]

AND AGAIN, I THINK THEY'VE STRETCHED THAT BUDGET AND BEYOND WHAT'S CURRENTLY ON PAPER. SO THOSE PARTNERSHIPS AND OTHER THINGS, THEY ALSO OFFER A LOT OF CLASSROOMS. SO WE'LL BRING IN DIFFERENT TEACHERS TO KIND OF WALK THEM THROUGH, YOU KNOW, EVERYTHING FROM FINANCIAL STUFF TO HEALTH AND WELLNESS. AND I THINK ONE OF THE THINGS KERRY'S DONE REALLY WELL IS ACTUALLY HAVING SOME OF THOSE SENIORS START TO LEAD SOME OF THE CLASSES. SO I THINK IT'S A REALLY, REALLY GREAT PROGRAM AND OBVIOUSLY ONE WE WOULD LIKE TO CONTINUE TO GROW. SO YOU'VE GOT A PROGRAM IN PLACE WHERE THESE LIKE SENIOR CITIZENS ASSOCIATIONS, THERE'S SEVERAL. RIGHT. THEY.

THEY HAVE A COORDINATOR THEY CAN REACH OUT TO. CAN THEY UTILIZE FACILITIES? SO IF WE'VE GOT, YOU KNOW, LIKE THEY WANTED TO HAVE AN OUTDOOR EVENT, BUT IT NEEDED TO BE COVERED IN KIND OF THE TENNIS CENTER AND WHATNOT, CAN THE CITY WORK THAT THROUGH THOSE SENIORS BENEFITS THAT ARE. THAT ARE IN YOUR BUDGET AND SO CAN THEY GROW WITHIN WHAT WE ALREADY HAVE? SO AS MUCH AS I'D LIKE TO SAY, HEY, LET'S PUT. PUT A HALF MILLION DOLLARS IN THE BUDGET FOR THE SENIORS, MAYBE THAT'S NOT THIS STEP, MAYBE THAT'S LATER. BUT THEN WHAT DOES THAT PROGRAM DO IN TAKING EXISTING RESOURCES THAT WE HAVE, YOU KNOW, AND PROMOTING EVENTS AND CULTURE AND COMMUNITY AND REALLY THE ENGAGEMENT? WELL, AND AGAIN, I THINK SOME OF THAT WOULD BE RUNNING THROUGH DIFFERENT. SOME OF OUR DIFFERENT DIVISIONS.

BUT I WILL SAY OVER THE LAST COUPLE YEARS, WE'VE REALLY BEEN PROMOTING SOME OF THE PROGRAMS THAT ARE OFFERED THROUGH DIFFERENT INDIVIDUALS.

HEALTHCARE PROGRAMS. SO THERE'S SILVERSNEAKERS PROGRAM. SO A LOT OF PEOPLE WILL QUALIFY FOR THAT. ALREADY WE'VE GIVEN THEM BASICALLY, IF THEY HAVE THAT MEMBERSHIP, THEY CAN GET FREE ACCESS TO THE TENNIS CENTER, THEY CAN GET FREE ACCESS TO WARFORD. SO THERE'S A FEW DIFFERENT PROGRAMS LIKE THAT THAT WE ARE ENCOURAGING PEOPLE TO CONSIDER BECAUSE OBVIOUSLY THAT'S ALREADY SOMETHING THAT THEY HAVE PROVIDED TO THEM THAT'S NOT COMING THROUGH THE CITY BUDGET. SO AS A PART OF THEIR HEALTH CARE PROGRAM, A LOT OF THEM HAVE ACCESS TO THINGS LIKE THE TENNIS CENTER AND OR WARFORD. SO BUT WE'RE ALWAYS LOOKING AT WAYS TO PARTNER. WE'RE LOOKING AT WAYS TO KIND OF OVERLAP. AND WE DON'T WANT TO. WE DON'T WANT TO DISPLACE OTHER ORGANIZATIONS WE WANT TO SUPPLEMENT AND COME ALONGSIDE THEM. I THINK THERE'S BEEN, LIKE I SAID WITH WARFORD AND HILLTOP, THERE'S A. BEEN SOME REALLY GREAT COLLABORATIONS AND PARTNERSHIPS THAT WE WANT TO CONTINUE TO GROW AS WELL. I THINK THAT'S WHAT'S SO GOOD ON THE ROI ON OUR SENIOR CITIZENS. LIKE, IT DOESN'T TAKE A LOT OF MONEY TO FACILITATE, YOU KNOW, SO EVEN IF WE HAVE THAT HUNDRED THOUSAND BUDGETED EVERY YEAR, WE NEED TO BE ABLE TO COMMUNICATE WHAT WE'RE ALREADY DOING. CAN WE GET A LIST OR.

REALLY LIKE WHAT I WOULD LIKE IS LIKE AN ACTUALS OF LIKE, HERE'S OUR DELIVERABLES, HERE'S WHERE WE SPENT THAT MONEY. BUT WE AT LEAST NEED TO BE ABLE TO COMMUNICATE A LIST OF, YOU KNOW, HERE'S HOW MANY MEALS THAT WERE PROVIDED. HERE'S, HERE'S THE FACILITIES THAT WERE, THAT WERE OPENED UP.

HERE'S THE EVENTS THAT THEY DID. SO, AND THEN I DO WANT TO, YOU KNOW, WE'VE GOT A REALLY GOOD COUNCILMAN, FORMER COUNCILMAN IN THE BACK THAT STILL I THINK SERVES ON ONE OF OUR SENIOR CITIZENS COMMITTEES MEETING MIGHT STILL BE THE PRESIDENT, BUT ALL THE THINGS THEY'RE DOING AS A COMMUNITY, WE NEED TO COME ALONGSIDE THAT. SO I THINK THAT IF WE CAN CONTINUE TO ALLOW THAT ENGAGEMENT FROM YOUR COORDINATOR, FIND THOSE THINGS THAT WE CAN PUSH SOME RESOURCES OVER TO. WE SAY IT AND I THINK IT'S EVEN BETTER WHEN WE SAY IT WHEN WE'RE NOT RUNNING FOR OFFICE. SO LIKE AS A GUY WHO INTENDS TO NOT RUN, LIKE THESE ARE OUR LONGEST STANDING TAXPAYERS.

RIGHT. SO LET'S CONTINUE TO INVEST THE MONEY IN THOSE WHO HAVE INVESTED THE MOST IN THE COMMUNITY. THERE'S $600 MILLION WORTH OF STUFF WE'RE GOING TO DO OVER THE NEXT YEAR. AND IF ANY OF IT BUILDS COMMUNITY, THEN WE'RE DOING OUR JOB.

RIGHT. RIGHT. SO, SO THE ROI ON 100K WELL SPENT THERE AND THEN COME BACK NEXT YEAR AND ASK FOR 200. YOU KNOW, AND LET'S BUILD THAT UP OVER TIME. MAYBE WE DON'T GET THERE A MILLION DOLLARS AT A TIME. MAYBE IT'S SMALL AMOUNTS, BUT WE WOULD NEED, WE WANT TO SEE, I WANT TO SEE MORE ENGAGEMENT ON THAT SIDE. COUNCILMAN, I JUST WANTED TO GIVE A LITTLE MORE CLARITY ON THIS. 55 TO 65 CURRENT NUMBERS. IT'S BEEN ABOUT 10% OF OUR POPULATION, 20,000 FOLKS, 65 TO 74, 70 OR 18,000 INDIVIDUALS, ABOUT 9% AND 75 AND OLDER. 12,500 FOLKS ARE 6.2%. SO 25% OF OUR POPULATION OR 40,000 INDIVIDUALS IS 55 AND ABOVE.

SO I THINK THAT WE SHOULD, IF WE'RE GOING TO BE SERIOUS ABOUT THE SENIORS AND NOT THAT WE'RE NOT SERIOUS ABOUT THE SENIORS, BUT WE,

[01:10:04]

WELL, LET'S, I WANT TO DO ONE THING FIRST THOUGH.

CAUSE WE'RE SPENDING FAR, WE'RE DOING. WHEN WE PUT THIS LIST TOGETHER, LET'S DON'T INCLUDE JUST PARTS OF THE PARKS AND RECREATION DEPARTMENT. BECAUSE I'VE SAT HERE AND HEARD ABOUT THINGS THAT THE LIBRARY IS DOING FOR THAT AGE GROUP. I'VE HEARD THINGS THAT HEALTH AND HUMAN SERVICES IS DOING. SO THERE SEEMS TO BE THIS MISNOMER OUT HERE THAT WE'RE JUST IGNORING SENIORS WHEN I DON'T THINK THAT'S TRUE. I MEAN, AND GREAT IF WE CAN FIND A WAY TO SERVE THEM WITHOUT IT BEING A DOLLAR IN THERE. THAT DOESN'T MEAN JUST BECAUSE WE'RE NOT HAVING TO SPEND MONEY ON IT, SOMEBODY ELSE IS, BUT WE'RE HELPING FACILITATE THAT. SO LET'S LOOK AT THE WHOLE PICTURE. AND I'M NOT SAYING THAT WE DON'T NEED TO LOOK AT IT, BUT, YOU KNOW, ONE OF THE BIGGEST THINGS THAT WE'RE ABLE TO DO FOR THE SENIORS IS NOT RAISE THEIR TAXES. I THINK THAT'S DOING A LOT FOR OUR SENIORS. AND SO.

BUT WHEN WE PUT THIS TOGETHER, LET'S LOOK HOLISTICALLY IS NOT JUST WHAT THE PARKS AND RECREATION DEPARTMENT IS DOING, BUT I THINK WE HAVE A LOT OF OTHER DEPARTMENTS THAT WE'VE KIND OF HEARD PIECEMEAL HERE THAT ARE ALSO SERVING THIS. SO NOT TO SAY THAT WE DON'T LOOK AT A FURTHER. NEED TO LOOK AT A FURTHER INVESTMENT IN IT, BUT LET'S DON'T SHORTCHANGE OR LET PEOPLE THINK WE'RE TURNING OUR BACKS ON THEM. BECAUSE AS I'VE SAT HERE AND HEARD WHAT A LOT OF DEPARTMENTS ARE DOING, I THINK WE ARE DOING A PRETTY GOOD JOB AT SERVING THAT COMMUNITY.

COULD WE DO BETTER? WELL, WE COULD DO BETTER IN ALL AREAS, BUT I THINK WE'RE NOT IGNORING THIS GROUP. I THINK WE HAVE, HAVE. WE'VE DONE A LOT. AND I THINK WHEN WE COME OVER WITH THAT LIST, LET'S GO HOLISTICALLY AT WHAT ALL WE'RE DOING THROUGHOUT THE CITY. I THINK THAT'S A GREAT, GREAT POINT. IS THERE ANY WAY THAT WE HAVE. DO WE HAVE A SENIORS, LIKE, ADVISORY GROUP OR IS THERE.

THERE'S SOMETHING THAT WOULD BE ABLE TO CORRELATE ALL OF THAT DATA AND COMPARE IT.

WE DON'T HAVE AN ADVISORY GROUP, BUT YEAH, BUT YEAH, WE ESTAB. WE CAN BRING BACK TO YOU INFORMATION. IN FACT, WE WORKED ON THAT A FEW MONTHS AGO. I KNOW UTILITY BILLING HAS A PROGRAM THAT BENEFITS SENIOR CITIZENS. AND SO, YEAH, THERE'S, THERE'S, YOU KNOW, WE'VE IDENTIFIED THESE AREAS THAT ARE SPECIFIC TO SENIOR CITIZENS. AND IF YOU WANT, YOU HAVE. WE CAN BRING BACK TO THE MAYOR'S POINT, I KNOW A DISCUSSION ON THE SENIOR SERVICE PROGRAM.

WE CAN TIE THAT PART INTO THAT PROGRAM. THAT CONVERSATION WITH THE COUNCIL ABOUT THIS IS WHAT PARKS IS DOING THROUGH THE SENIOR SERVICES, BUT THIS IS ALSO WHAT BILLING AND WHAT, WHAT, WHAT PUBLIC HEALTH IS DOING AND WHAT LIBRARY IS DOING. YEAH, WE CAN TIE THAT ALL TOGETHER. AND LET'S ALSO FORGET, NOT FORGET, THERE ARE A LOT OF ORGANIZATIONS IN THIS COMMUNITY THAT ARE DOING A LOT FOR SENIORS AS WELL. SO I MEAN IT'S NOT JUST ON OUR, YOU KNOW, ON US OR THE TAXPAYERS TO BE ABLE TO DO THAT. SO HOPEFULLY WE, WE HELP FACILITATE THAT. IF SENIORS ARE COMING TO US FROM US, OUR SERVICE, THEY NEED SOMETHING. THERE'S OTHER PLACES. BUT I THINK THIS COMMUNITY IS INVESTING PRETTY.

WE'RE LOOKING AT VARIOUS SENIOR CITIZEN CENTERS. WE HAVE SOME THAT ARE UP AND OPERATING SO HEALTHY. I THINK WE'RE DOING A LOT IN OUR COMMUNITY. I KNOW A LOT OF CHURCHES ARE LOOKING AT, PROVIDE THOSE TYPES OF PROGRAMS. WHAT DO YOU GUYS THINK? BECAUSE WHAT WE ARE IDENTIFYING IS A COMMUNICATION ISSUE IN SOME INSTANCES, EVEN IN JUST A SHORT EXCHANGE HERE, IT'S EASY TO MISCOMMUNICATE.

LIKE YES, I KNOW LIBRARY PERFORMS SEVERAL THINGS THAT THE SENIORS ENGAGE IN AND I DEFINITELY WANT TO SEE THAT PIECE AS WELL AND ANYTHING THAT THE CITY'S DOING.

BUT THEN WHAT DO YOU GUYS THINK? LIKE IS, IS WHAT'S MISSING HERE? LIKE, BECAUSE WE DON'T HAVE A CENTRAL. WE, WE HAVE A, WE HAVE THE MOST CARING AND GIVING POPULATION THAT IS ALWAYS SERVING IN OUR CHURCHES. FAITH BASED NONPROFITS OUT THERE DOING EVERYTHING THEY CAN.

RIGHT. DO WE NEED AS LEADERS TO HAVE SOME SORT OF FACILITATOR, SOME SORT OF LIAISON TO THAT COMMUNITY THAT CAN HELP US, YOU KNOW, COMMUNICATE. AND SO IF YOU THINK ABOUT BOARDS AND COMMISSIONS, A GREAT DEAL OF WHAT THEY DO IS HELP US TO HEAR FROM THE PUBLIC AT LARGE ON WHAT DO Y' ALL NEED IN PARKS AND WHAT DO Y' ALL WANT IN REC? DO WE WANT PADDLEBALL OR WHATEVER? SO IF WE'VE GOT 45,000 MEMBERS OF OUR COMMUNITY THAT ARE STAKEHOLDERS LONG STANDING, HOW COME WE DON'T CREATE A COMMISSION, YOU KNOW, EVEN IF IT'S JUST AD HOC FOR A WHILE TO HELP US COMMUNICATE AND THEN HERE, BECAUSE IF, IF YOU'RE TRYING TO RUN $10 MILLION WORTH OF PROBLEM SOLVING THROUGH PARKS AND REC, I DON'T KNOW THAT YOU'RE EVEN AT YOUR DIRECTOR LEVEL GETTING A LOT OF THE, THE THINGS THAT WE COVER COULD BE DOING. SO IS THERE SOME LOW HANGING FRUIT OUT THERE THAT IF WE JUST HAVE BETTER LEADERSHIP AND ENGAGEMENT WITH THOSE ORGANIZATIONS AND THEN IT'S STREAMLINED? BECAUSE I THINK

[01:15:02]

SO THE ONE THING ABOUT THAT AGE GROUP IS SOME OF THEM DO HAVE A LITTLE BIT MORE TIME TODAY. DEDICATE TO MEETINGS AND COORDINATION AND LEADERSHIP. IS IT JUST A LACK OF OUR VISION AND WE'RE NOT TAPPING THOSE PEOPLE LIKE WE SHOULD. SHOULD. SHOULD WE FORMALIZE IT AND GIVE THEM AN EASIER PLACE TO ENGAGE WITH US? WELL, THERE MIGHT ALREADY BE SOME PLACES IN THE COMMUNITY DOING THAT. I MEAN, I KNOW THERE'S AREA AGENCY ON AGING AND SO, YOU KNOW, THERE'S. THERE COULD BE. YOU KNOW, I THOUGHT THERE WAS A PANHANDLE AGING AND DISABILITY RESOURCE CENTER.

THERE MAY BE SOME THINGS.

TWO, ONE, ONE, TEXAS. I KNEW THE UNITED WAY HAS WORKED ON THAT. SO IF THERE'S A VACANT, THERE'S SOMETHING MISSING IN THERE, THEN MAYBE WE COULD FILL IT OR IDENTIFY WHERE THOSE ARE TO MAKE SURE THAT OUR SENIORS ARE EDUCATED ON WHERE TO GET THOSE RESOURCES. WELL, COUNCIL, IF WE CAN GET A REPORT BACK ON KIND OF ALL OF THE SERVICES THAT ARE. THAT ARE OFFERED, KIND OF THE ACTUALS THAT ARE GOING OUT INTO THE COMMUNITY, THEN LET'S TAKE A GOOD HARD LOOK AT THAT AND LET'S SEE IF WE'VE GOT SOME PUBLIC SERVANTS AROUND THAT COULD HELP US COMMUNICATE AND COORDINATE. I THINK THAT'S PROBABLY SOME OF THE STUFF WE'RE NEEDING.

SO ANYTHING ELSE FOR MR. KASHUBA? CONGRATULATIONS ON GETTING PUT IN CHARGE OF THE SENIOR CITIZENS OF AMARILLO. YES. HEY, AND GREAT JOB ON 10 AND GOLF. GETTING IN THE BLACK. WE DIDN'T EVEN HAVE TO USE A GOLF BALL, RIGHT? GOLF BALL. I'M OUT. I'M.

THAT. THAT'S LAST YEAR. THAT'S SO LAST YEAR. THAT'S SO LAST YEAR. $5. $2. THANK YOU. ALL RIGHT, NEXT UP WE'VE GOT MUNICIPAL COURT THIRD PARTY COLLECTIONS WITH DONNA KNIGHT. MORNING, MRS. KNIGHT.

HOW ARE YOU? GOOD MORNING.

LIVING THE DREAM. AND Y' ALL GOOD? YEAH. IT'S FRIDAY. WE MADE IT. WE DID MAKE IT. ALL RIGHT. GOOD MORNING, COUNCIL.

COUNCIL MAYOR DONNA KNIGHT, DIRECTOR OF THE MUNICIPAL COURT. I DO HAVE A PRESENTATION FOR YOU TODAY BECAUSE I'VE BEEN WORKING ON PUTTING SOME OF THIS DATA TOGETHER. HAVE TO GET USED TO THIS LAPTOP.

IT'S A LITTLE DIFFERENT THAN MY NORMAL ONE, SO. OH, AM I TOO QUIET? SORRY. I WANT TO TAKE A MOMENT TO KIND OF DESCRIBE WHAT A DEBT IS TO A CORPORATION IS COMPARED TO DEBT TO THE CITY, BECAUSE IT'S GOING TO BE A LITTLE DIFFERENT THAN WHAT YOU'RE. WHAT YOU PROBABLY THINK OF. SO WHEN THE CITY GOES AND MOWS THE LAWN FOR SOMEBODY WHO HAS HIGH WEEDS AND GRASS, AND WE SEND THAT NOTICE TO THAT PERSON AND THEY DON'T PAY DEBT.

SO WHEN AN OFFICER ISSUES YOU A CITATION, THAT'S NOT AUTOMATICALLY A DEBT BECAUSE YOU'RE INNOCENT UNTIL PROVEN GUILTY. YOU CAN COME IN DISPUTE THAT CITATION AND IT CAN BE DISPUTED, DISMISSED, IT CAN BE FOUND NOT GUILTY.

ALL SORTS OF THINGS HAPPEN BECAUSE CONSTITUTION. SO FOR THIS TO BECOME A DEBT, THE DEFENDANT HAS TO BE FOUND GUILTY BY A JUDGE OR JURY AND A JUDGMENT ENTERED.

THIS STILL DOESN'T BECOME A BAD DEBT. A BAD DEBT WOULD BE WHEN THE DEFENDANT BECOMES NON COMPLIANT AND IT GOES TO WARRANT. MAKE SENSE.

PRETTY, PRETTY SIMPLE THAT WAY.

RIGHT. EVEN AFTER IT GOES TO WARRANT WITH THIS JUDGMENT ENTERED STATUTORILY, THE JUDGE STILL HAS TO AT TIMES NON CASH IT FOR INDIGENCY. THERE ARE STATUTORY REQUIREMENTS ON THAT AND STATUTORY REQUIREMENTS ON TIME SERVE CREDIT. THAT JUDGE JUST HAS TO DO SO. IF IT DID GO TO COLLECTIONS, AT THAT POINT, THE JUDGE IS STILL DISMISSING IT OR NOT DISMISSING IT, BUT WAIVING THE FINES AND FEES.

NEXT ONE. THANK YOU. SO YES, ALL COURTS HAVE WARRANTS. WE HAVE ABOUT 22,000 WARRANTS RIGHT NOW AS OF AUGUST 9TH.

AND THEN A TOTAL OF FINDING COURT COSTS ON THOSE WARRANTS IS ABOUT 7.6 MILLION. BUT AGAIN, LIKE I JUST EXPLAINED, NOT ALL THOSE WARRANTS ARE DEBT BECAUSE THEY HAVEN'T BEEN FOUND GUILTY.

OKAY. OF THOSE WARRANTS, 8,500 HAVE A JUDGMENT ENTER THEY HAVE BEEN FOUND GUILTY. THAT'S DEBT.

OF THOSE 8,500, ABOUT 2.8 MILLION IS CONSIDERED, WOULD PROBABLY BE CONSIDERED BAD DEBT IN THIS CONVERSATION. MAKES SENSE. OKAY, SO LET ME GO, LET ME GO BACK TO THAT PREVIOUS. SO THE 8565 TO $2.9 MILLION, THEY'VE BEEN THROUGH THE SYSTEM. THEY FOUND

[01:20:02]

AND HOW, HOW OLD IS THAT DEBT? I MEAN, COULD THAT GO, COULD SOME OF THIS BE GOING BACK YEARS? OH, YEAH. SO STATUTORILY IN THE STATE OF TEXAS, THE JUDGE CAN DEEM IT NON COLLECTIBLE AFTER A JUDGMENT'S BEEN ENTERED AND THERE'S BEEN NO ACTIVITY ON THE CASE FOR 15 YEARS, WE DO ACTIVELY GET RID OF THOSE, BUT WE WOULD HAVE SOME UP TO 14 YEARS AT THIS POINT. WE DON'T HAVE A LOT AT 14 YEARS OLD. I CANNOT ANSWER THE EXACT AMOUNT THAT ARE 14 YEARS OLD, BUT WE DO HAVE SOME. SO ANYBODY FROM ONE DAY AFTER THEY'RE FINISHED TO 14 YEARS IS IN THIS $2.9 MILLION.

YES.

THANK YOU. THANK YOU.

STEPHANIE. HOW LONG DO THEY.

THEY REMAIN THERE OR WHEN DOES IT BECOME BAD DEBT AND IT'S WRITTEN OFF? I MEAN, HOW LONG DO YOU KEEP IT THERE? SO FOR THE ONES WITH JUDGMENTS, 15 YEARS.

FOR THE ONES WITHOUT JUDGMENTS, OUR PROSECUTOR HAS A STANDING MOTION, AND AFTER 10 YEARS UNADJUDICATED, SHE WILL GO THROUGH AND PUT IN A MOTION TO DISMISS THOSE. OKAY. THANK YOU. YOU'RE WELCOME. CAN I JUST. I WANT TO MAKE SURE I UNDERSTAND THE DELINEATION THAT YOU'RE SAYING WITH A JUDGMENT, WITHOUT A JUDGMENT. SO IF WE SAY THERE'S NO JUDGMENT, DOES THAT MEAN THERE'S NO AMOUNT DUE OR THERE'S NO AMOUNT OWED, OR WOULD THERE STILL BE AN INCURRED AMOUNT DUE? THERE JUST WASN'T AN ISSUED JUDGMENT. AND SO WHAT I'M ASKING ABOUT IS COLLECTIONS, BASICALLY. IS THERE STILL A POTENTIAL OF ME PAYING A FINE EVEN THOUGH I DON'T HAVE A JUDGE JUDGMENT THAT'S ISSUED? YES, THERE'S STILL POTENTIAL OF FINE. THE ONLY THING IS IT'S NOT ACTUALLY SET AT THIS POINT BECAUSE A JUDGMENT HASN'T BEEN ENTERED. SO 100%. WE HAD PEOPLE OVERNIGHT GO ONLINE WHO HAD A WARRANT AND PAID IT, AND THE JUDGE WILL ENTER A JUDGMENT TODAY. SO WARRANTS CAN BE PAID AT ANY TIME. PREJUDGMENT, POST JUDGMENT. CAN YOU GIVE US THE AMOUNTS AGAIN OF TOTALS? BECAUSE I THINK ALL I HEARD WAS THE TOTAL JUDGMENTS. SO I GUESS WHAT I WOULD BE CURIOUS ABOUT IS LIKE, WHAT. WHAT IS THE TOTAL POTENTIAL TOTAL IN WARRANTS IS 7.6 MILLION.

7.6 IS THE TOTAL WARRANTS AND OF WHICH YOU HAVE 2.8 IN JUDGMENTS. YES. OKAY. AND.

AND THAT INCLUDES ALL WARRANTS, ALL. ALL AMOUNTS THAT COULD BE DO TO THE CITY FOR WHATEVER REASON. ALL WARRANTS? YES. SO JUST ACTIVE WARRANTS? NOT ALL ACTIVE CASES, BUT YES. WHAT DOES THAT NUMBER LOOK LIKE, THE ALL ACTIVE CASES? I DO NOT HAVE THAT NUMBER OFF THE TOP OF MY HEAD. WE HAVE CASES IN ALL SORTS OF STATUSES RIGHT NOW. THEY ARE PENDING TRIAL WHERE THEY COULD BE FOUND NOT GUILTY. THEY ARE GOING THROUGH A DOCKETING PROCESS TO BE ABLE TO SAVE UP MONEY TO DO SOMETHING MAYBE TO KEEP IT OFF THEIR RECORD.

THEY'RE GOING THROUGH PAYMENT PLANS, COMMUNITY SERVICE. SO ON ACTIVE CASES, WE HAVE STAFF THAT ARE WORKING ON THOSE ACTIVE CASES. OKAY.

AND I DO HAVE A SLIDE HERE IN A LITTLE BIT TALKING ABOUT WHAT WE DO. OKAY, YOU'RE WELCOME. NOW, THIS IS A. I REACHED OUT TO ALL THE COURTS ON THIS GRAPH AND TALKED TO THEM ABOUT THEIR COLLECTION AGENCY.

EVERY SINGLE ONE OF THEM HAVE A COLLECTION AGENCY. WE ARE THE ONLY ONE WITHOUT. AS YOU CAN SEE, WE CLEAR ABOUT. WE CLOSE ABOUT 79% OF OUR CASES, THERE'S TWO COURTS ON THERE THAT CLOSE MORE. THEY ARE FRISCO, COMPLETELY NOT REPRESENTATIVE OF OUR POPULATION. AND EL PASO, THE SOCIOECONOMICS IN FRISCO ARE DIFFERENT THAN US.

EL PASO DEFINITELY HAS A DIFFERENT POPULATION, AND THEY ONLY CLOSED 1% PERCENTAGE POINT MORE THAN US. 80. 80% OF THEIR CASES. SO WE DO A VERY GOOD JOB OF WORKING WITH OUR CITIZENS TO ENSURE THAT THEY'RE COMPLIANT WITH JUDICIAL ORDER AND MAKING THOSE PAYMENTS THAT MAYBE THE JUDGE HAS SET FOR THEM. OKAY, THANK YOU, STEPHANIE. YOU MAY. YOU MAY COVER THIS IN A MINUTE, DONNA, BUT WHY DON'T WE USE A COLLECTION AGENCY? WE HAD A COLLECTION AGENCY UP UNTIL 2014. THE RELATIONSHIP AT THAT TIME WAS NOT THE BEST.

WE DID HAVE ISSUES ALSO WITH CITIZENS THAT WERE IN THE COLLECTION PROCESS THAT WOULD CALL US, OR MAYBE THEY WEREN'T THE CITIZEN IN THE COLLECTION PROCESS, AND MAYBE THE NAME WAS SIMILAR, AND THEY WOULD CALL US, AND THEY'RE LIKE, WE GOT THIS NOTICE. WE'VE NEVER BEEN TO AMARILLO, TEXAS, AND LOOKING THEM UP. SURE ENOUGH, THE COLLECTION AGENCY HAD SENT IT TO THE WRONG PERSON.

THERE'S MANY SIMILAR NAMES OUT THERE IN THE WORLD, AND WITH THE POOR RELATIONSHIP WITH THOSE TYPES OF RELATIONSHIPS WITH OUR CITIZENS. WE DON'T

[01:25:02]

THEY WILL PAY IT. WE DIDN'T WANT THAT TYPE OF REPUTATION WITH OUR CITIZENS. I DON'T THINK Y' ALL WANT YOUR CITIZENS GOING. THEY'RE JUST OUT AFTER MONEY, AND THEY'RE GONNA SEND IT TO WHOMEVER WILL PAY. YOU KNOW, IT'S JUST A PERCEPTION. DO WE NOT? I MEAN, I WOULD GUESS BEFORE WE SEND THOSE TO THAT COLLECTION AGENCY.

WE'VE TRIED. OH, YEAH, I HAD MY NEXT SLIDE. TELLS YOU ALL THE STUFF THAT WE TRY, AND I WILL POINT OUT THE THINGS THAT THEY DO.

SO HERE'S MY NEXT SLIDE. WE SEND LETTERS AS REQUIRED BY LAW. THAT'S SOMETHING THAT THE COLLECTION AGENCY WOULD DO, TOO. WE SEND TEXT MESSAGES.

COLLECTION AGENCY WON'T DO THAT. IT'S FREE THROUGH MY SOFTWARE. WE SEND EMAILS. TAKES MINUTES TO GET THOSE EMAILS AND MASKS SEND THEM OUT. WE TAKE ONLINE PAYMENTS, PHONE PAYMENTS. THE JUDGES WORK WITH OUR DEFENDANTS AND ASSESS THAT ABILITY TO PAY. THEY TALK WITH. WE TALK WITH DEFENDANTS IN PERSON AND REALLY TALK ABOUT WHAT CAN YOU PAY. THIS IS WHAT THE JUDGE REQUIRES. DO WE NEED TO SET YOU FOR AN INDIGENCY HEARING? WE HAVE TIME TO PAY CITATIONS.

THE JUDGES REALLY TALK TO THOSE DEFENDANTS AND ASSESS THEIR ABILITY TO PAY. AND IF THEY CAN'T PAY, TAKING THAT COMMUNITY SERVICE ROUTE.

BUT IF THEY CAN PAY $50 A MONTH, THEY DO WORK WITH THEM TO DO THAT $50 A MONTH, NO MATTER HOW LONG THAT PAYMENT PLAN MIGHT LAST. AND THEN WE DO SKIP TRACING FOR FREE. WE'RE ON THE APD'S SOFTWARE, SO WE DON'T INCUR AN EXTRA COST. THE THINGS THAT THE COLLECTION AGENCY WOULD DO, LETTERS, THEY WOULD CALL. WE DON'T NORMALLY CALL OUR DEFENDANTS UNLESS THEY'RE IN THAT COLLECTION PROCESS.

AND WE'LL CALL THEM AT THAT POINT. WE'LL MAKE SURE WE HAVE ALL THEIR IDENTIFYING INFORMATION. GOOD. AND WE'LL CALL THEM WHEN THEY'RE PAST DUE AND LET THEM KNOW, HEY, YOU'RE PAST DUE. THIS IS WHAT YOU HAVE TO DO TO GET COMPLIANT.

BUT THEY'LL CALL THEM, YOU KNOW, JUST AD HOC. THEY WILL TAKE THE PAYMENTS ONLINE AND ON THE PHONE. THEY DO THE SKIP TRACING.

BUT YOU KNOW WHAT THEY. WHAT THE CITIZEN GETS CHARGED FOR THAT? 30% ON THEIR CITATION. SO THE AVERAGE. WELL, THE MAX FINE ON MOST OF OUR CITATIONS IS $200. SO IF YOU'RE TALKING MAX FINE AND YOU'RE ADDING 30%, YOU'RE ADDING $60 ON EACH VIOLATION. WE ALREADY DISCUSSED HOW OUR CITIZENS ARE, LIKE, FILLING THE PINCH, LIKE 30%. THAT'S A LOT. AND THEN WHEN YOU START THINKING ABOUT IT IS A LOT FOR CITIZENS. IF THEY PAY $60, THAT $60 GOES TO THE COLLECTION AGENCY FIRST.

THE CITY SEES NOTHING. SO IF THEY PAY ONLY $30, THEY ONLY PAY $60, AND THEY END UP GOING TO JAIL AND GETTING TIME SERVED FOR THE REST. CITY SEES NOTHING. SO I WOULD THINK THAT WE WOULD ATTEMPT. WE WOULD DO ALL THESE THINGS FOR A CERTAIN PERIOD OF TIME, LIKE GIVE OUR CITIZENS THE OPPORTUNITY TO PAY THE ONES THAT WE'RE GOING TO PAY. YEAH. AND THEN SEND THE ONES THAT DON'T OVER.

I MEAN, IS THAT WITH YOUR 79%? IS THAT THE.

THAT'S THE. THAT ON YOUR PREVIOUS SLIDE THAT YOU'RE CLOSING 79%. SO THE WARRANTS THAT ARE ISSUED, THAT. THOSE ARE THE ONES WE'RE GETTING PAID. SO YOU'RE SAYING 21% ARE BAD DEBT. WHATEVER. NOT NECESSARILY BAD DEBT.

REMEMBER, NOT BAD DEBT, BUT JUST NOT PAID. YEAH, BUT WHY WOULDN'T WE WANT TO SEND THOSE? BECAUSE WE'VE BEEN NICE AND WE'VE BEEN GIVING EVERYBODY THE OPPORTUNITY TO PAY AND PROBABLY. PROBABLY QUITE A BIT. SOUNDS LIKE Y' ALL ARE REALLY GRACIOUS AND YOU HAVE A GOOD RELATIONSHIP, WHICH IS GREAT.

BUT THOSE THAT DON'T PAY, IT'S LIKE YOU STILL OWE IT. WHY WOULDN'T WE SEND THOSE OFF? TO THE COLLECTION AGENCY AT THAT POINT. JUST THOSE. THE ONES THAT Y' ALL ATTEMPTED AND SPENT HOWEVER MANY HOURS TRYING TO COLLECT. BUT WE DON'T GET AT THAT POINT, IT BECOMES A BURDEN ON THE STAFF TO ADMINISTER THE CONTRACT. I AM THE ONLY STAFF MEMBER WHO HAS EVER WORKED WITH A COLLECTION AGENCY. AND SO I WILL HAVE TO TEACH MY STAFF HOW TO DO ALL THAT, WHICH I CAN'T. 100% I CAN.

BUT IT DOES BECOME A BURDEN ON STAFF. IT'S NOT AS BIG A BURDEN AT THE BEGINNING OF THE CONTRACT THAT I WAS. I STARTED WORKING AT THE COURT IN 2012, AND I WORKED WITH THE ASSISTANT DIRECTOR BACK THEN AND KNOW THAT HE SPENT 40 HOURS A MONTH ADMINISTERING THE CONTRACT. SO 40 HOURS OF THE ASSISTANT ASSISTANT DIRECTOR'S TIME. I DON'T THINK IT WOULD BEGIN. BE THAT WAY AT THE BEGINNING.

BUT AS TIME GOES ON, YOU HAVE SO MANY CASES WITH THAT COLLECTION AGENCY AND PAYMENTS GOING BACK AND FORTH AND WARRANTS THAT NEED TO BE CLEARED BECAUSE THEY GOT PAID AT THE COLLECTION AGENCY. IT'S JUST A MONITORING. IT BECOMES A MONITORING NIGHTMARE, ESSENTIALLY OR AT LEAST THAT'S THE WAY IT WAS BACK THEN. I.

OF COURSE, WE HAVEN'T WORKED WITH A COLLECTION AGENCY IN 12 YEARS. DO YOU THINK IT'S CHANGED? YOU THINK TECHNOLOGY'S

[01:30:01]

AND HISTORICALLY WITH THE COLLECTION SERVICE, WHAT IS THEIR SUCCESS RATE? THE FUNDING IS. I PURGE ALL MY OLD RECORDS, SO I DON'T HAVE THAT 50%, 40%, 30%. SO I WAS ONE OF THE ONES THAT GOT TO CALL THE CASES BACK. AND WE.

WE CALLED THOUSANDS AND THOUSANDS OF CASES BACK. YES, THEY DID CLOSE A LOT OF CASES. SO MAYBE NORTH OF 50%. SO I'M GONNA SAY PROBABLY LESS THAN PROBABLY.

MAYBE BETWEEN 10 AND 20 WOULD BE MY GUESS. THAT'S A GUESS.

SO 1.4 MILLION AT 20. SO.

OKAY. THANK YOU. YOU'RE WELCOME. I KNOW ONE OF THE THINGS I WOULD SAY IS OBVIOUSLY COMPARING OURSELVES TO OTHER COMMUNITIES THAT HAVE COLLECTION 8 SERVICES. WE'RE DOING VERY WELL DOING OURSELVES. AND PLUS WE HAVE THIS PERSONAL TOUCH THAT WE CAN OFFER OURSELVES. CITIZENS THAT I'VE WORKED WITH CLUTCH AGENCY, MY PRIOR COMMUNITY, WE DIDN'T HAVE THE STAFF LIKE THIS, SO WE WORKED WITH FIRMS. AND SO I HAVE EXPERIENCE WITH THIS. I MEAN, I THINK THERE COULD BE A POTENTIAL OF THAT 21% MAYBE WORKING WITH THE COLLECTION AGENCY.

BUT I KNOW FROM MY EXPERIENCE WORKING WITH AGENCIES, I DON'T THINK THEY'RE GOING TO WANT THAT. THEY WANT THE 79% THAT WE'RE BEING SUCCESSFUL ON BECAUSE AGAIN, WORKING WITH PAST AGENCIES, THEY TOLD ME THAT THERE IS SOME DEBT WE WILL NOT COLLECT FOR VERY, THERE'S A WHOLE SLEW OF REASONS. AND SO WE WILL WORK WITH THEM. 100% OF THE DEBT CANNOT BE COLLECTED BECAUSE THERE'S JUST ISSUES WITH SOME OF THAT. SO I THINK WE CAN TRY TO, TRY TO ATTRACT, TRY TO GET AN ENTITY TO WORK WITH US. I THINK WE MAY HAVE A HARD TIME. THEY'RE GOING TO WANT ALL THE BUSINESS. AND SO IT'S BEEN MY EXPERIENCE WITH THESE AGENCIES IN THE PAST AND I THINK WE'RE BEING SUCCESSFUL RIGHT NOW WITH THIS, WITH OUR STAFF. AND IT DOES ALLOW THAT PERSONAL TOUCH THAT WE CAN OFFER OUR CITIZENS WHILE SAVING THEM AN EXTRA FEE THAT THE FIRMS DO CHARGE BECAUSE THERE'S A COST OF THAT. AND SO THAT'S HOW THEY DON'T CHARGE US. THEY CHARGE THE PERSON TO DO THIS. AND SO BUT YEAH, I WOULD AGREE. I MEAN, AND I WOULD, I WOULD SAY Y' ALL ARE DOING A PHENOMENAL JOB, A GREAT JOB.

LIKE YOU'RE RANKING ABOVE PEOPLE THAT YOU'RE OUTSOURCING IT. SO GREAT JOB. BUT IF WE COULDN'T NEGOTIATE A CONTRACT CONTRACT WITH SOMEONE LIKE YOU'RE ONLY GETTING OUR STUFF THAT LIKE WE'RE GONNA ATTEMPT.

I DON'T KNOW THE TIME, I DON'T KNOW ABOUT YOUR 79%.

HOW LONG DO Y' ALL WORK ON THOSE? I MEAN A MONTH, TWO MONTHS, SIX MONTHS.

LIKE WHAT? SO THOSE TYPICALLY BEFORE YOU GET, BEFORE YOU COLLECT BEFORE, TYPICALLY THEY'RE MAKING SMALL PAYMENTS AND THEN AT SOME POINT SOMETHING HAPPENS IN THEIR LIFE AND THEY CAN'T MAKE THAT SMALL PAYMENT. AND A COURT IS A SCARY ENVIRONMENT FOR SOME 100% A SCARY ENVIRONMENT. AND SO WHEN THEY GET SCARED, THEY DON'T. THEY BECOME NON COMPLIANT. AND WE WORK REALLY HARD WHEN WE TALK TO THEM. JUDGES WORK REALLY HARD WHEN THEY TALK TO HIM.

COME BACK AND TALK TO ME.

SURE, YOU LOSE YOUR JOB, COME BACK AND TALK TO ME. AND SOME DO.

BUT IS THERE ANY WAY TO, I MEAN WHEN YOU'RE ACTIVELY COLLECTING, THAT'S GREAT. AND WHEN THEY HAVE HARDSHIP, YOU KNOW, TO ME THAT YOU'RE STILL ACTIVELY COLLECTING IS JUST SOMETHING HAPPENED. IS THERE NO WAY TO JUST PUSH ALL THE REST? LIKE PICK AN AGE OR YOU KNOW, HOWEVER, IF THERE'S CERTAIN OLD OR IF YOU'RE ACTIVELY COLLECTING OR YOU KNOW, EVEN IF IT'S IN HARDSHIP, GIVE THE OTHERS THE OTHER, THE REST OF IT. BECAUSE I THINK, AGAIN, WE'RE IN BUDGET TIME. WE'RE LOOKING HOW TIGHT THINGS ARE. I MEAN, EVEN IF WE COULD RECOVER A MILLION DOLLARS. AND AGAIN, Y' ALL HAVE BEEN VERY NICE AND VERY GOOD WITH OUR CITIZENS TO TRY TO WORK WITH THEM. AND IF THEY. THEY'RE JUST NOT PAYING WELL, YOU'RE NOT GONNA BE TREATED AS NICE. I MEAN, I HATE TO SAY THAT, BUT, I MEAN, YOU ATTEMPTED IT. THEY DIDN'T TAKE THE OPPORTUNITY.

SO THEN. BUT ONLY IF WE COULD FIND A FIRM THAT WOULD TAKE.

THEY DON'T GET ALL OF IT.

THAT'S CRAZY, BECAUSE I THINK THAT WE WOULD NET LESS IF WE HANDED THAT OFF AND YOU GUYS DIDN'T HAVE THAT. BUT THEN WE HAVE THE NEGATIVE EXPERIENCE.

WE'RE COLLECTING LESS MONEY. I HAVE TO LOSE, LOSE.

BUT IF WE COULD FIND SOMEBODY TO SAY, LISTEN, WE'LL GIVE YOU OUR STUFF THAT WE'RE HAVING A DIFFICULT TIME COLLECTING. IF Y' ALL COLLECT, GREAT. IT'S MONEY TO YOU. IF YOU DON'T COLLECT, WELL, I MEAN, YOU DON'T GET ANYTHING. WE HAVE ANY IDEA OF THE 22,000. WHAT PERCENT AREN'T CITIZENS OF AMARILLO OR PAPA RANDALL COUNTY? I DON'T HAVE THAT OFF THE TOP OF MY HEAD, BUT I COULD GET THAT FOR YOU.

BUT SINCE WE. WE SEE A LOT OF PASS THROUGH TRAFFIC HERE AND EVERYTHING. SO THERE'S GOING TO BE A PERCENTAGE OF THAT THAT AREN'T CITIZENS OF THIS AREA. RIGHT. AND THAT'S PART OF THE PROBLEM. PROBLEM OF TRYING TO COLLECT SOME OF THESE. YEAH, BECAUSE THEY'RE OUT OF THE. THEY'RE OUT OF THE AREA. MOST COULD BE OUT OF STATE. AND SO THAT. THAT FORMS A PROBLEM. I KNOW ON THE LAW ENFORCEMENT END, IT'S A BENEFIT TO HAVE THOSE IN THE SYSTEM FOR 15 YEARS, BECAUSE IT. WHEN THEY. WHEN

[01:35:01]

BUT THERE IS THAT PERCENTAGE.

ALL RIGHT. THANK YOU. ONE OF THE THINGS JUDGE HAMILTON AND I HAVE DISCUSSED IS IF COUNCIL CITY MANAGEMENT DIRECTED THAT WE SHOULD GO OUT FOR BID ON THIS, IT WOULD. I'M SURE IT'D BE A BID PROCESS THAT WE WOULD SEND THOSE THAT HAVE THAT JUDGMENT ENTERED. SO THOSE ARE. ARE WHAT I'VE CALLED IN THIS BAD DEBT. I MEAN, I WOULD AGREE. I MEAN, I. I THINK IT'S WORTH IT. I MEAN, AGAIN, WE'RE LOOKING AT A TIGHT, TIGHT BUDGET, AND WE'VE GOT. DEPENDING ON THE PERCENTAGE. I MEAN, A MILLION IS MAYBE ON THE LOW SIDE, BUT IF WE COULD DO IT AND Y' ALL HAVE ATTEMPTED. AND YOU'VE DONE GREAT TO TRY TO GET IT. AND IF THEY'RE JUST UNRESPONSIVE, LET. LET THAT FIRM GO WORK FOR THEIR 60 BUCKS. YEAH. I MEAN, TO GO COLLECT IT WHERE THAT BURDEN IS OFF OF YOU GUYS AND OUR NUMBERS EVEN GET BETTER. Y' ALL GET TO DO WHAT YOU DO WELL AND DO A GREAT JOB.

AND THEN WE JUST HAVE A LITTLE BIT EXTRA THAT Y' ALL DON'T HAVE TO MESS WITH AND IT'S.

IT'S BETTER FOR THE CITY.

YEAH.

OF ALL THE THINGS THAT WE'VE HAD ON OUR PLACE, THIS IS ONE I'VE HAD IN THE BACK BURNER. BUT THIS ONE I'VE BEEN THINKING MORE TOWARDS ABOUT BECAUSE I LIKE THAT APPROACH. THAT'S ACTUALLY WHERE I WAS GOING AT WITH THIS AS WELL IS I DON'T WANT TO GIVE THEM EVERYTHING BECAUSE WE'VE BEEN VERY SUCCESSFUL. AND I. AND I. WHAT I ASKED DONNA TO DO WAS HELP ME SHOW PROVED TO ME THAT WE ARE SUCCESSFUL.

AND SO SHE. SHE WENT OUT AND FOUND THESE OTHER CITIES. AND THAT'S BEEN THE LAST FEW WEEKS.

AND TO ME THAT TELLS ME THAT WE.

THAT WE ARE SUCCESSFUL. AND I'M WORRIED THAT WE WOULD GO DOWNWARDS IF WE WERE TO DO ALL OF IT. BUT SO THAT ME. IT REINFORCES THE IDEA, LET'S GO AFTER THAT. THAT 21% WITH A FIRM. LET THEM HAVE THAT IF THEY KILL, IF THEY EAT. AND SO IF WE GET A LITTLE BIT GREAT. IF WE DON'T, THAT'S FINE. WE WOULDN'T GOT IT ANYWAYS. AND SO THAT'S WHERE I DON'T WANT TO TAKE THIS. AND SO I WOULD AGREE. YEAH. I MEAN, GENERALLY, AND I MEAN A BUSINESS BEST PRACTICE IS, YES, YOU'RE. YOU'RE SPENDING YOUR TIME AND RESOURCES FOR A CERTAIN AMOUNT OF TIME WORKING DEBT. BUT AT A CERTAIN POINT IN TIME, IT'S NOT THE HIGHEST AND BEST USE. I MEAN TO CONTINUE TO SPEND THAT AMOUNT OF TIME.

AND I LOOK AT THIS, I GUESS WE'RE WRITING OFF $200,000 A YEAR ON BAD DEBT THAT'S 14, 15 YEARS OLD, AND WE'VE GOT THAT MUCH IN IT. SO I MEAN, IF IT'S NO COST TO US AND WE FIGURE OUT A TIMETABLE THAT'S FAIR TO US AND ALSO FAIR TO THE COMPANY, BECAUSE THEY'RE NOT GOING TO TAKE IT IF IT'S NOT FAIR. I THINK IT WOULD BE AND I WOULD HOPE NOT ALL COLLECTION AGENCIES DO WHAT YOU SAID OURS PREVIOUS ONE DID. WE'D CERTAINLY NOT WANT TO USE THEM AGAIN.

BUT I DO KNOW THERE ARE A LOT OF GOOD ORGANIZATIONS OUT THERE BECAUSE I THINK WE USE PEOPLE ON THE PROPERTY TAX SIDE TO DO COLLECTION FOR US AS WELL. AND SO I'M SURE THERE ARE GOOD ONES OUT THERE, BUT IT MIGHT BE WORTH SOMETHING TAKING A LOOK AT AND SEE HOW IT GOES. AND IF IT'S A MUTUALLY BENEFIT BENEFICIAL RELATIONSHIP, YOU KNOW, GOING FORWARD TO HELP US AND TO HELP THEM, I THINK IT'D BE WORTH SEEING IF WE CAN MAKE IT WORK. AND ONE OF OUR, ALSO ONE OF OUR PILLARS IS CUSTOMER SERVICE. AND THEN THE NICE THING ABOUT CONTROLLING IN HOUSE IS I CAN CONTROL THE CUSTOMER SERVICE ASPECT OF THIS FROM EXPERIENCE WORKING WITH SOME PREVIOUS FIRMS. SOME OF THAT IS NOT THERE BECAUSE WHENEVER A PERSON CALLS AN ATTORNEY, THEY'RE TALKING TO AN ATTORNEY AND THAT'S SCARY AND THAT'S HARD. AND SOME OF THESE FIRMS THAT I'VE BEEN AROUND, WE'RE ONE OF SEVERAL CLIENTS, THEY DON'T REALLY HAVE AN OWNERSHIP, THEY DON'T FEEL ACCOUNTABILITY TO OUR CITIZENS. THEIR STAFF DOES. AND I HOLD THEM RESPONSIBLE THAT WHENEVER YOU CALL OUR CITIZENS WE'RE GOING TO DO A IT RIGHT AND WE'RE GOING TO TREAT THEM RIGHT BECAUSE WE KNOW THEY HAVE EXTENUATING CIRCUMSTANCE.

BUT THEY STILL OWE US SOMETHING. BUT WE'RE GOING TO WORK WITH THEM. AND THAT CREATES A BETTER, BETTER FEELING TOWARDS OUR COURT SYSTEM IN AMARILLO AND VERSUS KIND OF A COLD ATTORNEY FIRM LOCATED IN HOUSTON OR SOMETHING LIKE THAT AND, OR WHEREVER IT'S AT. AND SO WHOEVER WOULD WIN THAT. SO I THINK THAT'S ONE THING WHEN WE WOULD GO WITH, WHEN WE PURSUE A FIRM TO DO THAT 20% I WANT TO WANT, I'M GOING TO WANT SOME REFERENCES, SOME EXPERIENCE FROM OTHER COMMUNITIES. OKAY, HOW ARE YOUR CITIZENS BEING TREATED BY THESE FIRMS? BECAUSE AGAIN FROM PRIOR EXPERIENCE, THERE WAS A FIRM THAT MY COMMUNITY HAD BEFORE, BEFORE I GOT THERE THAT WASN'T SERVICES, WASN'T QUITE, WASN'T IDEAL. SO THEY MADE A CHANGE. SO, AND THEN I ENDED UP WITH A FIRM THAT DID VERY, DID EXCELLENT CUSTOMER SERVICE.

HE'S AN INDIVIDUAL THAT I'D HOPE WOULD PURSUE THIS BECAUSE I KNOW HIM, HE DOES VERY, VERY ACCOUNTABLE, VERY SENSITIVE TAKE TO OUR CITIZENS. AND SO THEY DO EXIST, BUT THERE'S SOME THAT DON'T.

SO, SO HAVE WE EVER NOT AN ALL OUT AMNESTY DEAL, BUT DO WE EVER DO ANY TYPE WHERE IF THEY COME, THEY GET THEIR FINES DISCOUNTED? SO WE DON'T DO ANY AMNESTY. WE DO THE COURT COMPLIANCE CAMPAIGN. AND WHAT THE JUDGES DO DURING THAT MONTH OF THE COMPLIANCE CAMPAIGN CAMPAIGN BEFORE LAW ENFORCEMENT GOES TO SERVE THE WARRANT IS THEY DO ALLOW THEM THE ABILITY TO GO BACK ON A PAYMENT PLAN.

MOST OF THE TIME OUR JUDGES, IF

[01:40:01]

YOU KNOW, YOU NEED TO PAY THIS, OR YOU NEED TO EXPLAIN WHY YOU DIDN'T PAY THIS AND HAVE THAT EXTENUATING CIRCUMSTANCES THAT WOULD MAKE THEM LOOK AT IT DIFFERENTLY.

BUT DURING COURT COMPLIANCE, THEY TYPICALLY WILL ALLOW THEM BACK INTO, LIKE, A PAYMENT PLAN OR SOME OTHER ALTERNATIVE TO RESOLVE IT. MAYBE.

COMMUNITY SERVICE. IS THAT PRETTY SUCCESSFUL? OH, YES.

DURING. DURING THE COMPLIANCE CAMPAIGN, WE DO HAVE MANY CITIZENS WHO TAKE ADVANTAGE OF THAT, BUT WE ALSO HAVE MANY CITIZENS WHO JUST GO ON AND PAY. THEY'RE LIKE, OH, SOMEONE'S GOING TO COME LOOK FOR ME AND SERVE MY WARRANT.

AND SO IT'S TYPICAL FOR US TO HAVE 100,000 OVERNIGHT PAID ONLINE. THANK YOU. SOUNDS LIKE WE'VE GOT SOME DIRECTION HERE.

SO I THINK YOU'RE HEARING WHAT WE'RE COMMUNICATING. WE WERE IN FAVOR OF GOING OUT FOR PROFESSIONAL SERVICES AGREEMENT WITH SOME CONTROLS. SO THAT WHAT IS AND IS NOT A CONTROL COUNTED FOR AS BAD DEBT ALLOWS US STILL TO INTERNALIZE AND NAVIGATE ALL THAT. AND THEN ONCE IT BECOMES BAD DEBT, WE JUST WANT TO MAKE SURE THAT WHOEVER THE FIRM IS THAT YOU GUYS SELECT IS BEST QUALITY, ONE THAT WE CAN AND REPRESENTS THE CITY WELL. I THINK THAT'S OUR ONLY CONCERN.

SO YOU DO NEED TO COMMUNICATE, LIKE, BACK TO THE COURT OVER THERE.

LIKE, THE. THE IMPROVEMENTS OVER THE LAST FOUR OR FIVE YEARS HAVE BEEN GREAT. AND SO, LIKE, WE'VE SEEN LOTS OF GOOD THINGS AND APPRECIATE ALL OF OUR JUDGES. YOU KNOW, THOSE BAILIFFS THAT YOU CAN'T HIRE THAT YOU JUST KEEP TRYING TO COME ON, HANG IN THERE ONE MORE YEAR, AND FOUR YEARS LATER, THEY'RE STILL THERE. RIGHT? SO, LIKE, THANK Y' ALL FOR EVERYTHING YOU GUYS ARE DOING.

THANK YOU. AND I WANT TO SAY JUDGE HAMLIN SENDS HER APOLOGY.

SHE WANTED TO BE HERE, BUT SHE HAD. SHE HAD MANDATED TRAINING SHE HAD TO GO TO, SO.

BUT SHE. I WANT TO LET YOU KNOW THAT SHE. SHE WOULD HAVE BEEN HERE OTHERWISE.

SHE. SHE HAD TO GO TO TRAINING. WELL, WE UNDERSTAND AND WE APPRECIATE YOU BEING HERE. THANKS. YOU WANT TO KEEP GOING? DO ONE MORE OR YOU WANT TO TAKE. WE CAN DO ONE MORE. IT'LL BE PRETTY BRIEF. BRING MITCH UP JUST FOR A QUICK UPDATE ON THE HEALTH PLAN ADD ON REQUEST THAT WE WERE KIND OF TALKING ABOUT YESTERDAY.

GOOD MORNING, MAYOR, COUNCIL.

HOW ARE Y'? ALL? MITCH NORMAN, HR DIRECTOR. SO I APPRECIATE Y' ALL GIVING ME THE OPPORTUNITY TO SPEAK TO YOU REGARDING THE SUPPLEMENTAL PLANS THAT YOU INQUIRED ABOUT THE OTHER DAY. I RECOGNIZE THAT THERE ARE STAFF HAS ENGAGED IN EXERCISES REVIEWING SUPPLEMENTAL PLANS AND THE POTENTIAL BENEFITS TO THE CITY. AND BASED ON OUR REVIEW, THE DIFFERENT EXERCISES THAT WE ENGAGED IN, WE WERE UNABLE TO IDENTIFY THE BENEFIT, THE PROJECTED SAVINGS. WE COULDN'T MATERIALIZE THE PROJECTED SAVINGS. AND WE WERE DETERMINED THAT THERE WASN'T A PARTICULAR SUPPLEMENTAL ENGAGEMENT. EXCUSE ME, ARRANGEMENT THAT'S APPROPRIATE FOR OUR CITY WAS NOT. OKAY, I, SO I'M NOT UNDERSTANDING WHAT WE'RE SAYING THERE. SO LIKE YOU GUYS HAVE ENGAGED IN THIS. YES. YOU'VE LOOKED AT IT AND ON TWO AREAS. ONE, YOU COULDN'T FIND A REASON FOR A SUPPLEMENTAL PLAN AND YOU COULDN'T FIND A REALIZED SAVINGS. IF YOU IMPLEMENTED WHAT WAS PROPOSED DEFINITIVELY HOW THOSE SAVINGS WOULD BE REALIZED. BECAUSE THESE PLANS ARE DRIVEN BY TAX CODES, THE MONIES THAT YOU WOULD ACHIEVE IS THROUGH PAYROLL TAXES. BUT THERE ARE ALSO COSTS ASSOCIATED WITH THE PROGRAM ITSELF. IT'S NOT A NET ZERO PROGRAM BECAUSE THERE ARE CLAIMS EXPENSES THAT COULD BE ATTRIBUTABLE. ONE OF THE BIGGEST CONSIDERATIONS DURING OUR REVIEW OF THE PROGRAM PROGRAM IS THE INTRICACIES AND ASSOCIATED WITH THE IRS CODE THE APPLICATION OF THESE PROGRAMS. IF WE WERE TASKED TO DO A DEEPER DIVE INTO WHETHER OR NOT ONE OF THESE PROGRAMS IS AN APPROPRIATE FIT FOR THE CITY, WE WOULD RECOMMEND ENGAGING WITH A, WITH TAX COUNCIL, COUNCIL SPECIALIZED IN TAX AND BENEFITS TO ENSURE THAT WE GET THE APPROPRIATE AND NECESSARY INFORMATION TO CONFIRM THE APPROPRIATENESS.

YEAH, THE, I GUESS THE, THE PDF THAT I SENT YOU GUYS TODAY, I DON'T, I'M SURE YOU'VE PROBABLY GOT IT AS WELL.

YEAH. SO THAT, THAT FICA TAX SAVINGS IS LIKE, THAT'S WHAT IT'S ALL ABOUT.

AND IT PUTS ABOUT A THOUSAND DOLLARS IN EVERYBODY. THE EMPLOYEES POCKET THEIR TAKE HOME PAY INCREASES BY ROUGH, DEPENDING

[01:45:01]

THOSE, THOSE, THOSE ARE JUST PROJECTIONS.

THE PROGRAM'S ACTUALLY DRIVEN BY EACH INDIVIDUAL'S UNIQUE TAX CIRCUMSTANCES, YOUR ELIGIBILITY FOR CERTAIN TAX FOR THAT TAX INCENTIVE. AND THERE'S INFORMATION THAT WE JUST DON'T HAVE HAVE, YOU KNOW, UNFETTERED ACCESS TO REGARDING EVERY INDIVIDUAL'S TAX CIRCUMSTANCES. SO THE, THE DOCUMENTS THAT PROMOTE THE INFORMATION ARE ESTIMATIONS.

BUT WOULD IT BE WORTH LOOKING INTO? I MEAN FOR $1.5 MILLION? I THINK, I MEAN BASED ON 2,500 EMPLOYEES, I THINK IS WHAT IT SAID. IT'S ONE AND A HALF MILLION DOLLARS.

AND AGAIN, YOU KNOW, I JUST THINK IF WE'RE, IF WE'RE LOOKING AT BEING FRUGAL AND TIGHTENING EVERYTHING UP AND AGAIN, I DON'T WANT TO PUT A BURDEN ON OUR, OUR EMPLOYEES EITHER FOR. BUT I THINK IT'S JUST EXTRA. I MEAN IT'S JUST THEIR PLAN STILL WORKS AS THEIR PLAN. RIGHT.

IT'S ADMINISTERED THROUGH AETNA. BUT WE, THIS WOULD JUST BE EXTRA FOR PRESCRIPTIONS AND THOSE KINDS OF THINGS. BUT I WANT TO PUT AN EXTRA STEP FOR EVERYBODY BECAUSE THAT'S A PAIN. BUT IT SAVES US ONE AND A HALF MILLION DOLLARS IN FICA. I THINK WE, WE'VE GOT TO WEIGH THAT. BUT LIKE YOU SAID, WE DON'T KNOW EVERYBODY'S TAX SITUATION. IS THERE A WAY TO LIKE VET THAT AND, AND JUST SEE IF IT IS ACCURATE OR NOT? YEAH, YEAH. THIS MEAN I HAVE TO LITTLE CONTEXT. I MEAN WE GET LOTS OF SOLICITATIONS THROUGHOUT THE YEAR. SO, SO STAFF, THEY, THEY DO AN INITIAL DIVE, NOT TOO DEEP, AND THEN THEY, THEY KIND OF, THEY KIND OF TEST WHAT ARE THE, WHAT ARE THE INITIAL HICCUPS.

AND WE RAN INTO A FEW WHEN IT CAME TO THE IRS THAT COST US BECAUSE I KNOW MITCH MET WITH, MET WITH A FIRM HERE RECENTLY. HE DID SOME TRAINING, HE GOT SOME TRAINING ON IT FROM ANOTHER ENTITY. AND THERE WERE SOME INITIAL IRS CONCERNS THAT KIND OF CAUSED THE TIME JUST TO PAUSE. AND WE THOUGHT, WELL, GET SO MANY SOLICITATIONS, WE JUST KIND OF BIG PAUSE. WE DON'T DO A DEEP DIVE.

BUT IF YOU WOULD LIKE FOR US TO DO A DEEP DIVE, WE CAN. AND SO, AND AGAIN, LIKE I SAID, WE GET LOTS OF THESE AND WE KIND OF JUST, WE DO INITIAL REVIEW, WE RUN INTO ROADBLOCK, WE JUST MOVE ON.

BUT IF THE COUNCIL WOULD LIKE FOR US DO DEEP DIVE THIS ONE WE CERTAINLY CAN. YEAH. SO LET ME RECAP AND MAKE SURE WE KNOW WHAT WE'RE ASKING BEFORE WE GET THERE. SO THIS IS A BOLT ON PACKAGE, RIGHT. SO IT DOESN'T CHANGE AETNA, DOESN'T CHANGE HUB DOESN'T CHANGE ANYTHING. SO WE DON'T HAVE ANY DISRUPTION OF OUR 2,800 EMPLOYEES, RIGHT? I CAN'T SAY THAT DEFINITIVELY. OKAY. PLAN FUNCTIONS INDEPENDENTLY, INDEPENDENT OF OUR CURRENT GROUP PLAN THAT WE HAVE. AND IN ORDER TO EXERCISE THE BENEFITS AVAILABLE TO IT, MY UNDERSTANDING IS THAT THERE ARE POTENTIAL, THERE ARE CONSIDERATIONS. WE'D HAVE TO EVALUATE THOSE CONSIDERATIONS BECAUSE IT MAY IMPACT MEMBER EXPERIENCE. IS THIS NOT WHAT WE PAY HUB FOR ALREADY? LIKE THAT'S OUR CONSULTANT.

THEY'RE GETTING PAID FOR THIS.

I THINK IT'S A PREPAID EXPERT THAT WE SHOULD REACH OUT TO.

SO I THINK THE FIRST QUESTION WE'D LIKE ANSWERED IS IS THIS A BOLT ON PLAN OR DOES IT COME WITH STRINGS THAT COULD CAUSE COMPLICATIONS SO THE RISK ISN'T WORTH THE REWARD IF WE END UP WITH A COUPLE THOUSAND EMPLOYEES THAT HAVE COMPLICATED HEALTH CARE AND WE DON'T WANT TO DO THAT. SO IF WE CAN IMPROVE, YOU KNOW WHAT REALLY PROBABLY IS AROUND 4,500 BELLY BUTTONS IN THEIR ABILITY TO GO GET BETTER HEALTH CARE.

WE WANT THAT. SO ESSENTIALLY I THINK WHAT COUNCIL'S WANTING IS WE WANT EVERY BENEFIT THAT WE CAN PROVIDE FOR EVERY CITY EMPLOYEE. AND I MEAN, EVEN IF IT'S A CREDIT UNION BENEFIT WHERE YOU GO GET A LOW INTEREST LOAN, I MEAN JUST BENEFITS ARE BENEFITS. WE WANT THEM ALL. SO IN THIS, IF THIS IS A SUPPLEMENTAL HEALTH CARE, YOU KNOW, THIS THING SAYS PAYS FOR PRIMARY CARE VISITS, URGENT CARE, PRESCRIPTION DRUGS, THINGS LIKE THAT, IT'S NOT MAJOR MEDICAL. SO IF THIS PACKAGE IS SOMETHING THAT THEY CAN UTILIZE AS A BENEFIT AND THERE'S ZERO RISK IN IT AFFECTING AETNA AND SOME OF THE OTHER ONES. SO IF HUB CAN JUST GIVE AN ANSWER, YEAH, THEY CAN DO IT, YOUR EMPLOYEES CAN DO IT AND IT WON'T CHANGE ANY OF THE CONTRACTS THAT WE HAVE.

YEAH, WE'VE ENGAGED HUB. I'VE EVEN SEEN THE CORRESPONDENCE ON THIS LOOK MYSELF AS WELL.

SO, OKAY, THE, I THINK THE POTENTIAL OF REALIZED SAVINGS FOR THE EMPLOYEE IF WE CAN SAVE OUR EMPLOYEES, YOU KNOW, FIVE TO SIX HUNDRED DOLLARS PER YEAR IN THEIR PAYROLL TAX, WHERE THAT BECOMES THEIR ADDITIONAL MONIES THAT THEY CAN KEEP. AND WE DON'T COMPROMISE ANY OF OUR LOGISTICS. RIGHT. THE WAY IN WHICH THIS IS JUST A FORMULA THAT IS ENTERED AND IT GIVES, GOES THROUGH AND, AND WE DON'T COMPLICATE EVERYBODY'S. I REMEMBER NOT TOO LONG AGO WE HAD PAYCHECKS THAT WITH A NEW SYSTEM WE HAD TO CALL AND SAY, HEY, WE MISCALCULATED. CAN YOU BRING US THE MONEY BACK? RIGHT. SO I THINK COUNCIL HAS A CONCERN

[01:50:02]

HOPEFULLY WE DON'T NEED A STUDY. WE DON'T WANT TO HIRE ANYBODY. LET'S JUST GO AND GET A TAX PROFESSIONAL THAT SAYS, YEP, YOU CAN DO IT, OR NOPE, NOT ALLOWED. AND SO THAT'S. THOSE ARE THE THREE THINGS THAT I'M HEARING AND KIND OF GETTING. I DON'T KNOW IF COUNCIL HAS ANY OTHER QUESTIONS THEY'D WANT YOU TO DO, BUT THEN IF YOU CAN JUST COME BACK THROUGH CITY MANAGEMENT PROBABLY DOESN'T NEED TO BE AN AGENDA ITEM ON A COUNCIL MEETING.

JUST NEEDS TO BE DRIVEN BACK THROUGH MANAGEMENT OF, YES, WE CAN DO THIS. YES, WE CAN DO THAT. AND THIS ONE OVER HERE, WE STILL HAVE A CONCERN OR WHATEVER IT COMES. YEAH, I VERY MUCH RECOMMEND THAT ROUTE BASED OFF INFORMATION THAT WE'VE SEEN SO FAR. REAL GOOD. YEAH. ALL RIGHT. WHAT OTHER QUESTIONS? ANY OTHER QUESTIONS? Y'. ALL.

Y' ALL HAD CONCERNS ON THAT? ALL RIGHT. OKAY. THANK YOU, MITCH. THANK YOU. HEY, WE'RE RIGHT AT 10 O'. CLOCK. WHAT DO YOU HAVE LEFT ON THE. SO WE'RE GOING TO TALK A LITTLE BIT ABOUT THE HOT TAX SUBSIDY AND THE ALLOCATION. THEN WE'LL DIVE INTO THE RECOMMENDED SUPPLEMENTAL DOCUMENTS THAT WE'VE PROVIDED, TOUCH A LITTLE BIT ON DEBT REQUESTS AND PRESENT KIND OF THE UPCOMING RETIRING DEBT.

AND THEN WE'LL CIRCLE BACK ON CASH FLOW, WATER, WASTEWATER, CALCS. AND THEN IT'S OPEN FOR QUESTIONS AND DIRECTION.

MAN. REAL GOOD. SO WE'RE MAKING PRETTY GOOD PROGRESS. LET'S.

LET'S RECESS TILL 1015 AND WE'LL COME BACK IN HERE THEN. THANK YOU ALL.

OKAY, WE'LL CALL OURSELVES BACK INTO SESSION HERE 1020, MOVE FORWARD. MR. PATH, WHERE YOU WANT TO START NEXT? I THINK WE'RE GOING TO START WITH THE HOT, BUT I THINK ANDREW IS BUSY COORDINATING. I THINK HE STEPPED OUT REAL QUICK TO. AND SO HE'LL BE RIGHT BACK. CAN WE COME BACK MAYBE AFTER LUNCH? WE'LL CATCH HOT TAX CIVIC CENTER BRIEFLY.

SURE. YEAH, WE CAN. YES. AND SO WE'LL BE READY TO GO ONCE HE'S BACK, BUT HE JUST HAD TO STEP OUT REAL QUICK, SO NO. DO WE WANT TO GO THROUGH. THE NEXT ITEMS ARE ALSO HIS AS WELL. SO HE'S DOING THE CIP SUPPLEMENTAL. SO THESE ARE ALL HIS. SO, YEAH. IF WE CAN MAYBE GIVE A COUPLE MORE MINUTES BEFORE HIM GET BACK. YEAH. OR IF WE WANT TO TRANSITION OVER TO SEWER AND WATER, WE COULD TALK ABOUT THAT. IS THAT ONE. THAT. WHO'S WORKING ON THAT ONE? I THINK THAT WAS KATRINA AND LOLA. OKAY, WE'VE GOT SLIDES THAT SHOW YOU THE WALK THE CROSSWALK FROM THE ACFR TO THE AVAILABLE FUNDS CALCULATION. WOULD YOU LIKE TO SEE THAT? OH, YEAH.

THAT THE. SO THIS WOULD BE THE AVAILABLE FUNDS CALCULATION.

HOW YOU ARRIVE AT THAT? RIGHT. OKAY, GREAT. GIVE ME JUST A MOMENT TO GET THAT PULLED UP. SO WE DID DECIDE, MS. KATRINA. I GUESS WHENEVER YOU'RE READY.

WE'RE JUST GETTING THEM PULLED UP. I GOT YOU. OKAY. AVAILABLE FUNDS IS THE STARTING POINT FOR DETERMINING HOW MUCH CASH WE'LL HAVE AVAILABLE TO FILL PRIORITIES. WE PULL PAGE 32 FROM THE ACFR. WE'RE GOING TO LOOK AT SOME CASH AND INVESTMENTS, RECEIVABLES, TAKEOUT LIABILITIES AND CONSTRUCTION IN PROGRESS. NOW, ON THE CURRENT ASSETS, WE HAD 19.2 IN CASH. WE HAD INVESTMENTS OF 57.6. THAT DOES ALREADY INCLUDE THE

[01:55:03]

THAT'S WHY IT'S NOT IN THERE TWICE. AND THEN WE HAVE RESTRICTED CASH. SO EVERY TIME YOU HAVE A BOND ISSUE, IT GOES INTO RESTRICTED CASH.

THAT IS 78.9, LEAVING A TOTAL OF 155.8 FOR CASH AND INVESTMENTS. THEN WE'LL JUST GO PAST DEPRECIATION BECAUSE WE ALREADY EXPLAINED IT. ASSETS CONVERTED TO CASH IS YOUR RECEIVABLES.

THAT ENTIRE AREA CAN BE LIQUIDATED TO CASH. WE HAVE SOME RECEIVABLES, A 7.5. WE HAVE A LEASE PAYMENT TO BE PAID OR RECEIVED OF 93,000. INTEREST TO BE RECEIVED OF 6.6. OTHER DEPARTMENTS OWE US 11.7. AND THEN SOME PREPAID EXPENSES COULD BE CONVERTED AT 4.2, LEAVING 30.3 IN RECEIVABLES FOR CASH. LIABILITIES, WE START AT A TOTAL OF 82.5. AND THEN WE HAVE TO BACK OUT WHAT IS ALREADY BUDGETED.

SO WE'LL BACK OUT SOFTWARE AND WE'LL BACK OUT COMPENSATED APPS. SO 82.5, MINUS THE 237 AND THE 159, THAT LEAVES US 84.2. AND ONE QUICK NOTE IN THERE ON THAT BOTTOM PART. WE'RE BRINGING BACK IN YOUR ENCUMBRANCES. THAT BOX DIDN'T END UP WHERE I WANTED IT TO. IF YOU LOOK RIGHT ABOVE THE RED BOX TO THE LEFT JUST A LITTLE BIT, YOU'LL SEE 2,000,069, 276.

THOSE ARE YOUR PURCHASE ORDERS.

WHERE WE HAD SOMETHING ENCUMBERED AT YEAR END, BUT WE DON'T HAVE AN ACTUAL INVOICE FOR IT YET. THANK YOU. I FORGOT ABOUT THAT PIECE. AND THEN THE LAST OR NEXT SLIDE IS GOING TO BE YOUR CIP. THIS IS NOTE 12, THE ORIGINAL NOTE. AND WE HAD ON WATER SEWER 81.9. THAT ORIGINAL BOX, GO BACK TO THAT PAGE, WAS THE FLOOR EXAMPLES AND WE JUST COPIED AND PASTED SO IT NEEDED TO COME DOWN TO THE 89.9. AND THEN THE LAST SLIDE GIVES YOU THE TOTAL.

WE HAD 20 POINT OR 20 MILLION AVAILABLE AS YOUR CASH, YOUR LIQUIDITY TO START WITH.

YOUR PRIORITIES FOR WATER SEWER. WHAT QUESTIONS DO YOU HAVE? MAYOR? ALL RIGHT, SO I LIKE THE PREVIEW. SO CAN WE GO ALL THE WAY BACK TO SLIDE ONE? YES, SLIDE ONE'S GOOD. SO LET'S GO BACK. SO THE CALCULATION GO BACK ONE MORE.

LET'S JUST IDENTIFY THE COMPONENTS. SO IN GENERAL, ON ANY FUND WE DO AN AVAILABLE FUNDS CALCULATION, RIGHT? YEAH. THAT IS YOU TAKE A CASH AND INVESTMENTS NUMBER THAT IS ARRIVED AT. WHAT MAKES UP THAT CASH AND INVESTMENTS? GO TO THE NEXT SLIDE ON THAT ONE. SO IN YOUR ACFR ON THEIR BALANCE SHEET, YOU'LL HAVE A CASH AND INVESTMENTS LINE AND YOU'LL HAVE AN INVESTMENTS LINE, A RESTRICTED CASH, WHICH IS YOUR BONDS. ALL OF THOSE TOGETHER WILL BE THAT CASH AND INVESTMENTS. OKAY, SO IF WE'RE LOOKING AT THAT RIGHT THERE, YOU'VE GOT CASH OF 19 MILLION INVESTMENTS. WHAT, WHAT MAKES UP THOSE INVESTMENTS? THAT'S NOT OUR ASSETS, RIGHT? THOSE ARE INVESTMENTS. ARE THOSE, THOSE ARE, ARE YOUR TREASURIES, YOUR AGENCIES AND YOUR FIDELITIES, BUT NOT PIPELINES AND THINGS THAT ARE ASSETS.

THAT WOULD BE AN ASSET. SO, SO IN THAT INVESTMENT, THAT IS JUST, JUST MONEY SITTING IN THOSE FIDELITY ACCOUNT, CEDARS. OKAY, THEN YOU'RE COUNTING WHAT YOU STILL HAVE TO COLLECT FROM PEOPLE, RIGHT? THEN YOU'VE GOT YOUR ACCRUED INTEREST LINE ITEM.

THEN WHAT IS DUE FROM OTHER FUNDS.

LIKE WHAT MAKES THAT $11 MILLION UP. THAT'S GOING TO BE YOUR TRANSFERS INTO WATER SEWER. WE'LL HAVE TO DIG IN TO GET YOU THE EXACT DETAIL DETAIL OF WHAT MAKES THAT NUMBER UP.

WOULD, WOULD THAT AMOUNT OF MONEY BE PART OF THE INTER GOVERNMENT TRANSFERS? LIKE SO WHEN WE LOOK AT THIS BUDGET AND IT SAYS 146 MILLION OF IN INTERNAL TRANSFERS, THAT'S PART OF THAT, RIGHT? YOU'VE GOT, YEAH, YOU'VE GOT ENTITIES OR FUNDS THAT ARE PAYING SEWER AND WATER, RIGHT.

FOR, FOR, LIKE WHAT, WHAT ARE THEY PAYING FOR? FOR WATER USE? FOR WATER USE THAT'S NOT ON A METER. OH, IT WOULD BE, YEAH. SO LIKE THAT'S A TRANSFER THOUGH.

THAT'S NOT A BILL THAT GETS PAID. SO WE DON'T WRITE A METER FROM PARKS OR WE DON'T WRITE A CHECK FROM PARKS AND REC FOR ALL THE WATER USED TO SEWER AND WATER. IT WOULD BE A TRANSFER. IT TRANSFERS.

[02:00:02]

THAT JUST SHOWS UP ON THE ACFR AS AN ITEM. IT IS BALANCE SHEET. IT CANNOT BE CONVERTED EASILY TO CASH. THIS IS A LIQUIDITY CALCULATION.

CAN WE GO BACK TO ORIGINAL PAGE? FRONT PAGE.

THIS IS IT. GO BACK ONE MORE.

THERE WE GO. OKAY, SO YOUR AVAILABLE FUNDS CALCULATION IS YOU TAKE EVERYTHING THAT WE JUST WENT THROUGH, THAT, THAT ADDS UP TO 155 MILLION, RIGHT. THEN YOU ALSO HAVE ASSETS TO BE CONVERTED TO CASH. WHAT IS THAT? THAT'S THE AR. THAT. THAT BOX RIGHT THERE. THOSE ARE THOSE OTHER CURRENT ASSETS THAT WE TALKED ABOUT. SO IF YOU LOOK, EVERYTHING THAT IS BOXED IN RED ON THE ACFR IS EVERYTHING THAT IS PICKED UP IN YOUR 30.3 MILLION MILLION.

OKAY. AND SO THOSE ARE THINGS WE COULD TURN INTO CASH IN THE SHORT TERM IF WE NEEDED TO.

OKAY. THEY GO IN. SO GO BACK IF YOU WOULD. SO YOU HAVE THAT.

SO REALLY WHAT WE'VE GOT IS WE'VE GOT A TOTAL AMOUNT OF EVERYTHING THAT THAT FUND HAS WITHIN A CERTAIN LEVEL OF LIQUIDITY. RIGHT. INCLUDING WHAT'S RESTRICTED. BUT THERE'S COMMITMENTS THAT ARE ALREADY MADE TO THAT. RIGHT. SO THAT COMMITMENT IS CONSTRUCTION IN PROGRESS DOWN THERE AT 8.

81 MILLION. YES. SO THAT'S YOUR CIP PULL FORWARD OUT OF THAT FUND STILL LEFT TO PAY. SO AT THE END OF FY25, WE HAD $81 MILLION LEFT LEFT TO GET COMPLETED IN ALL COMMITTED CIPS FOR WATER, SEWER. YES, FOR JUST FOR THAT FUND. AND THAT'S FOR. NOTE THE ORIGINAL NOTE 12. OKAY. SO, YEAH, THAT, THAT CONFUSES ME, I GUESS THAT FLEET SERVICE SERVICES LINE ITEM, THAT'S NOT ANYTHING WE SHOULD LOOK AT.

NO, THAT WAS THE ORIGINAL.

WHEN WE HAD THAT EXAMPLE THE OTHER DAY, IT JUST NEEDED TO PULL DOWN TO THE WATER SEWER. THAT WAS ME NOT PULLING THAT RED BOX DOWN.

IF YOU LOOK AT THE YELLOW HIGHLIGHTED LINE, 81,000,819, 870. THAT'S WHAT WE'VE PULLED IN FOR. WATER AND SEWER. OKAY. SO APOLOGIZE FOR THE CONFUSION. NO, NO PROBLEM. I APPRECIATE YOU EXPLAINING IT. SO WE HAVE $81 MILLION OF WORK LEFT TO GO PAY FOR. RIGHT? THAT IS.

AND, AND DO WE EVER TRACK LIKE WHAT WAS APPROPRIATED FOR THAT. THAT'S IT. THAT'S THE BUDGETED LESS ALREADY INCURRED.

IF YOU LOOK ON THE SCHEDULE TOO, THAT FIRST COLUMN IS YOUR PROJECT AUTHORIZATIONS OF 264 MILLION FOR WATER AND SEWER. THAT.

THAT'S YOUR TOTAL. THAT LEADS DOWN TO THE 81 MILLION. THAT'S THE STILL REMAINING COMMITTED.

AND SO YOU'LL SEE THERE ARE COLUMNS THERE FOR ANY EXPECTED REVENUE AND FUNDING RECEIVED BUT THEN COMPLETED AT YEAR END. SO FOR THE PROJECTS THAT WE STILL HAVE OPEN, THAT WE HAVE COMMITMENTS ON THE ORIGINAL AUTHORIZATIONS ON THOSE PROJECTS, THE BUDGET'S 264 MILLION, IF THAT HELPS. NO, I GUESS I'M TRYING TO FOLLOW THAT. SO YOU'RE SAYING AS A, BECAUSE WE'RE ONLY LOOKING AT THE POINT IN TIME OF FY 2025. RIGHT. SO THERE'S $81 MILLION WORTH OF SEWER AND WATER PROJECTS THAT NEED TO GO GET DONE. WHAT. WHAT IS THE OUTSTANDING DEBT AT THAT TIME? LIKE WHAT. WHAT PAGE DOES IT SHOW SEWER AND WATER DEBT? IT WOULD STILL BE ON THAT SAME PAGE. IT'S JUST IN THE LIABILITY AREA, THE NON CURRENT. SO WE DON'T HAVE THE FULL BALANCE SHEET DISPLAYED BECAUSE WE'RE JUST PROVIDING THE LIQUIDITY CALCULATION. BUT.

BUT IF WE OWE MORE THAN THAT.

RIGHT, LIKE OUR DEBT BALANCE.

STEPHANIE, YOU MAY HAVE IT.

YOU'RE SAYING PAGE 101 IS WHAT YOU'RE AT. IF YOU'VE GOT YOUR ACFA, GO TO PAGE 34 AND 35 OF YOUR ACFA. THIS IS YOUR WATER AND SEWER. OKAY, I'M THERE. STATEMENT IN NET POSITION FOR PROPRIETARY FUNDS. WATER AND SEWER IS THE FIRST COLUMN ON THERE. SO WHERE KATRINA WAS REFERENCING ON PAGE 35 UNDER NON CURRENT LIABILITIES, YOU SEE YOUR DEBT THERE AND THERE IS A CURRENT PIECE. SO THERE'S 19.2 MILLION OF CURRENT BONDED DEBT AND THEN THE NON CURRENT IS 236 MILLION. SO CURRENT IS WHAT WILL WE DO THIS NEXT FISCAL YEAR THAT WE ARE REQUIRED TO PAY? SO WE OWE 236 MILLION PLUS THE 19 PLUS THE

[02:05:02]

BUT YOU'RE LOOKING ONLY AT YOUR AVAILABLE CASH THAT YOU COULD PRIORITIZE. YOU NEED TO NOT FACTOR IN YOUR DEBT.

RIGHT. WE'RE TALKING APPLES TO ORANGES A LITTLE BIT BECAUSE OF THAT 81. IT'S NOT ALL DEBT EITHER. SOME OF IT MIGHT BE CASH FUNDED. SO CAN YOU GO BACK TO THE VERY FIRST PAGE AGAIN? THIS CALCULATION HAS ALL YOUR LIABILITIES ENCUMBRANCES.

RIGHT. RIGHT ABOVE. SO THAT 84 MILLION. WHAT IS THAT? RIGHT.

SO IT'S YOUR CURRENT LIABILITIES, YOUR OBLIGATIONS TO PAY WITHIN THIS NEXT FISCAL YEAR.

SO YOU WOULD HAVE ALL OF YOUR PAYABLES OUTSTANDING, WHAT YOU EXPECT TO HAVE IN ACCRUED DEFERRED REVENUES COMING IN, WHAT YOU PAY TO OTHER DEPARTMENTS. NOW, YOU ALREADY BUDGET FOR LEASES, YOUR SOFTWARE, AND YOUR COMPENSATED ABSENCES.

SO YOU BACK THAT OUT OF YOUR CALCULATION. AND THEN WE HAVE TO ACCOUNT FOR THE PO'S THAT HAVE NOT STARTED THE LIFE CYCLE JUST YET AND END UP IN PAYABLES. AND SO WE HAVE TO ACCOUNT FOR THOSE AS WELL.

WELL. AND THAT PUTS YOU AT 84.2. OKAY. SO FORGIVE ME FOR GETTING LOST RIGHT THERE.

SO WE'RE AT THE END OF THE BUSINESS YEAR. WE'RE NOT TALKING BUDGET. WE'RE JUST TRYING TO GET AN AVAILABLE FUNDS BALANCE. SO WE'RE JUST TRYING TO FIGURE HOW WE, HOW WE ENDED UP CASH, WHAT'S IN THE, THE DRAWER OR THE TILL AT THE END OF BUSINESS DAY.

RIGHT. SO THAT LINE ITEM, 84 MILLION, DID YOU SAY THAT'S FOR WHAT YOU STILL HAVE LEFT TO PAY AT THE END OF 25 OR THAT'S FOR NEXT YEAR? THAT WILL BE FOR THE NEXT YEAR. THAT IS WHAT WE'LL PAY DURING NEXT YEAR'S FISCAL YEAR.

OKAY, BUT WE'RE NOT, WE'RE NOT PLANNING ON PREPAYING ALL OF THAT. SO WHY IS THAT A DEDUCTION IN THIS, IN THIS CALCULATION? BECAUSE YOU OWE IT. HOW DO I OWE THAT? YOU'RE OBLIGATED TO PAY EVERYTHING IN THAT CURRENT LIABILITIES.

OKAY, SO GO BACK WITH ME HERE. THIS IS END OF FY25, RIGHT? RIGHT. THIS IS ALL OF THE MONIES THAT ARE IN THAT FUND. AND WE'RE CALCULATING LIKE HOW MUCH IS RESTRICTED AND IS GOING TO GET PULLED FORWARD. YOU'RE PULLING IN $84 MILLION WORTH OF BILLS THAT NEED TO BE PAID IN 26. RIGHT. BECAUSE YOU CAN'T SPEND THAT OR YOU'RE SPENDING IT TWICE. OKAY. IN RUNNING AN ENTERPRISE. SO HELP ME ON MY PRIVATE SIDE. SO LIKE IN, AT THE END OF BUSINESS DAY, I'M GOING TO ADD UP WHAT WAS IN THE TILL, LIKE WHAT WE STARTED WITH AND WHAT WE HAVE LEFT OVER NOW. THEN THE NEXT BUSINESS DAY, I'M GOING TO TAKE IN REVENUES AS I PERFORM THAT SERVICE.

BUT WHAT YOU'RE SAYING IS, AS WE PULL OUT OF THAT TILL FOR ALL OF THE EXPENSES FOR THE NEXT YEAR, THE IOUS THAT ARE IN THAT TILL HAVE TO COME OUT. SO KEEP IN MIND THOSE EXPENSES THAT LED TO THESE PAYMENTS THAT ARE DUE WERE IN 24, 25. SO WE HAD VOUCHERS PAYABLE. WE RECEIVED AN INVOICE FOR $10,000. WE OWE THAT 10,000, BUT WE DIDN'T PAY IT BY SEPTEMBER 30TH. WE KNOW WE HAVE TO PAY IT, AND THAT'S WHY WE BACK IT OUT.

AND SO WHERE WE'RE TAKING THESE CURRENT LIABILITIES, AMOUNTS WE KNOW WE WILL BE PAYING IN THE NEXT 12 MONTHS, THAT'S THE OTHER SIDE OF THIS ONE RIGHT HERE, WHERE WE'VE TAKEN OUR CURRENT ASSETS AND SAID THESE ARE AMOUNTS WE KNOW WE WILL BE RECEIVING IN THE NEXT 12 MONTHS. AND SO WE ADD THOSE IN BECAUSE WE EXPECT TO HAVE MONEY AVAILABLE THAT WE WILL BE RECEIVING, BUT AT THE SAME TIME, WE RECOGNIZE WE HAVE AMOUNTS THAT ARE DUE THAT WE WILL BE PAYING. DOES THAT HELP? WELL, I MEAN, IT'S HELPING ME UNDERSTAND WHY I CAN'T UNDERSTAND. SO I AM TRYING TO UNDERSTAND JUST WHAT THE ENTERPRISE DID DURING THAT FISCAL YEAR OF FY25. THIS CALCULATION IS CONSIDERING EVERYTHING THAT IT DID IN 25, PLUS WHAT IT'S GOING TO DO IN 26, BOTH IN INCOME THAT'S GOING TO COME IN AND EXPENDITURES THAT ARE GOING TO GO OUT. NOW, IF I HAD A LEFT TO PAY, MEANING. NO, NO, IN FY25, YOU HAD A BILL THAT CAME, CAME DUE, AND IT WAS IN THAT FISCAL YEAR. SO YOU, YOU BOOK IT AS AN EXPENSE EVEN THOUGH YOU DIDN'T PAY IT UNTIL THE NEXT YEAR. RIGHT. I COULD UNDERSTAND THAT SIDE OF IT.

BUT IS THAT WHAT YOU'RE SAYING? YOU, YOU CALCULATE ALL OF THOSE EXPENDITURES IN 26, BUT YOU PULL THEM OUT OF WHAT IS IN THE END OF 25.

THE EXPENDITURES ARE HITTING IN 25. THEY ARE YOUR EXPENDITURES IN YOUR AUDIT FOR 24,25. SO THEY'RE SITTING IN AN EXPENSE ACCOUNT. AND THE OTHER SIDE OF THAT IS YOUR LIABILITY ACCOUNT SAYING WE HAVE THIS VOUCHER PAYABLE. SO WE'VE EXPENSED. ABSOLUTELY.

LET'S SAY THAT WE HAVE PURCHASED A FIRE TRUCK AND

[02:10:01]

WE'VE RECEIVED OUR INVOICE.

WE'VE GOT AN INVOICE SAYING WE OWE A MILLION DOLLARS FOR THIS FIRE TRUCK AS OF 930.

BUT WE DIDN'T CUT THAT CHECK BY 930. YOU'VE GOT YOUR, YOUR EXPENSE FOR THE FIRE TRUCK OF A MILLION DOLLARS. AND THEN YOU CREDIT YOUR VOUCHERS PAYABLE FOR A MILLION DOLLARS BECAUSE AS OF THE END OF THE YEAR, WE OWE A MILLION DOLLARS FOR THAT FIRE TRUCK. WELL, COME INTO OCTOBER. IN OCTOBER, WE CUT A CHECK FOR A MILLION DOLLARS. WE DEBIT THAT VOUCHER PAYABLE, IT GOES AWAY, OUR CASH GOES DOWN A MILLION DOLLARS. AND SO IF WE DON'T SHOW THAT MILLION DOLLARS COMING OUT OF YOUR AVAILABLE FUNDS, THEN YOU MIGHT THINK YOU HAVE A MILLION DOLLARS. YOU REALLY DON'T.

BECAUSE WE NEED TO PAY THAT FIRE TRUCK. AND SO IF WE DON'T ACCOUNT FOR IT IN THAT AVAILABLE FUNDS, TAKING THAT MILLION DOLLARS OUT FOR THAT FIRE TRUCK, YOU COULD OVERSPEND IT. I KNOW WE'RE TALKING WATER AND SEWER ON THE SLIDES. THAT'S A GOOD EXAMPLE. SO YOU HAVE $84 MILLION WORTH OF PAYABLES THAT YOU EXPECT TO PAY IN 26, BUT YOU'RE DEDUCTING THEM IN THIS CALCULATION AT THE END OF 25 FOR BUDGET PURPOSES.

RIGHT? RIGHT. OKAY. AND THEN THOSE EXPENSES ARE PICKED UP DURING 26 OR THEY'RE NOT CONSIDERED RIGHT BECAUSE YOU'VE ALREADY DEDUCTED THEM OUT OF YOUR CASH. CORRECT. THEY WOULD JUST COME OUT OF YOUR CURRENT LIABILITIES.

SO YOUR LIABILITIES, ONCE WE PAY THAT ARE GOING TO GO DOWN AS WILL YOUR CASH.

THAT'S YOUR TWO SIDES OF THAT EQUATION. CASH GOES DOWN WHEN WE PAY IT, BUT YOUR LIABILITY ALSO REDUCES BECAUSE YOU DON'T OWE IT ANYMORE. SO NOTHING HITS THE INCOME STATEMENT. YOU'RE NOT SEEING ANY EXPENSE THERE. AND ONE OTHER NOTE THAT MIGHT HELP.

ACT FOUR IS 9, 30, 20, 25.

RIGHT. WHEN WE'RE THINKING AVAILABLE FUNDS, WE'RE THINKING 10, 1, 20, 25.

SO AVAILABLE FUNDS IS WHERE ARE WE STARTING OUR BUDGET YEAR? AND THAT, THAT'S WHAT'S SO IMPORTANT IN THIS IS LIKE YOU GOTTA, YOU GOTTA KNOW WHERE YOU'RE STARTING IS. SO IF YOU GO TO PAGE 36 IN YOUR ACFR. DO I NEED TO BE ON PAGE 34 LOOKING AT YOUR 19 MILLION CASH AND CASH EQUIVALENTS OR CAN I GO TO PAGE 36 AND LOOK AT THAT DEPRECIATION LINE ITEM? YOU CANNOT. WHY CAN I NOT? BECAUSE IT IS NOT PART OF THE AVAILABLE FUNDS. OKAY, SO LET'S GO WITH THE MILLION DOLLAR FIRE.

OKAY. IF WE LOWER CASH A MILLION DOLLARS, WE PUT IT AS A VEHICLE, SO IT'S IN YOUR CAPITAL ASSETS. SO IT'S, LET'S SAY IT'S A FIVE YEAR PROPERTY. WE TAKE A MILLION DOLLARS DIVIDED BY FIVE AND THEN WE TAKE THAT AND PUT IT AS ONE YEAR OVER AS DEPRECIATION. SO YOU SPENT THAT DOLLAR WHEN YOU BOUGHT THE FIRE TRUCK.

DEPRECIATION IS NOT AN ACTUAL DOLLAR. IT'S A JOURNAL ENTRY ON THE DEPRECIATION OF THE, THE VEHICLE. RIGHT? YEAH. SO I CAN'T, WE CAN'T SPEND THE DEPRECIATION. OKAY, WELL, I WAS DEFINITELY WITH YOU UNTIL THEN. RIGHT. SO LIKE THE DEPRECIATION IS. YOU ALREADY SPENT THE DOLLAR. WE DID. AND, AND WE ALREADY CALCULATED FOR IT. RIGHT. SO I'M NOT TRYING TO SPEND THE DEPRECIATION DEPRECIATION AGAIN, I ALREADY SPENT THE DOLLAR.

RIGHT. OKAY, SO THEN I HAVE A DEPRECIATION LINE ITEM IN THAT CURRENT YEAR, RIGHT? WHERE I PICK UP ALL OF THAT DEPRECIATION AS A JOURNAL ENTRY. RIGHT? OKAY. SO IF I BACK THAT DEPRECIATION OUT DURING THAT CURRENT YEAR TO JUST GET A CASH POSITION OR A NET PROFIT AT THE END OF JUNE, THE BUSINESS YEAR, WHY DO YOU THINK I'M SAYING I WANT TO SPEND THAT DEPRECIATION? BECAUSE I CAN'T. I DON'T KNOW WHAT. WHY WE. WHAT IS IT ABOUT DEPRECIATION THAT WE NEED? BECAUSE WE'RE DEALING WITH AVAILABLE FUND CALCULATION. SO I REALLY APPRECIATE THE PRESENTATION AND THE WALKTHROUGH. I SEE WHERE YOU'RE WORKING FROM. GO WITH ME. SO, LIKE, TAKE OFF YOUR ACCOUNTING HAT AND PUT ON, LIKE, JUST A PRIVATE BUSINESS HAT.

WELL, WE STILL HAVE TO OBSERVE GAPS. WE STILL HAVE TO OBSERVE THE RULES. NOT FOR THIS. NOT FOR THIS PAPER, YOU KNOW, EXAMPLE HERE.

BECAUSE IT WON'T AFFECT ANYTHING. RIGHT? SO SEWER AND WATER, END OF FY25. RIGHT. SO IT RAN $100 MILLION, 800,000 IN TOTAL REVENUE. SO PAGE 36, IF YOU WOULD. THERE WE GO. SO WE AGREE THAT THAT BUSINESS, THAT ENTERPRISE, RAN 100 MILLION FOR THE YEAR IN REVENUES. IT DID. OKAY.

THEN YOU LOOK DOWN AT SALARIES AND. WAIT, OR SALARY, WAGES, YOU GOT SUPPLIES, YOU GOT, YOU KNOW, FUEL, POWER, ALL THIS. SO THIS IS COST OF GOODS, RIGHT? COST OF DOING BUSINESS. SO OTHER

[02:15:01]

LIKE, LET'S NOT EVEN LOOK AT THAT. BUT THEN DOWN BELOW THAT, YOU SEE THAT LINE ITEM WHERE IT SAYS YOUR TOTAL IS 89 MILLION. RIGHT. SO YOU SPENT 89 MILLION THAT YEAR TO DO BUSINESS. RIGHT. OKAY, WELL, THE ONLY LINE I SKIPPED OVER IS THAT ONE FOR 17 MILLION THAT SAYS DEPRECIATION. SO IN YOUR COST OF DOING BUSINESS FOR 89 MILLION. RIGHT. BECAUSE IF I JUST SHOWED THAT TO MY BUSINESS PARTNER AND I SAID, HEY, WE DID GOOD THIS YEAR.

WE. WE BROUGHT IN 100 MILLION, I SPENT 89, WE MADE 11. HE WOULD GO, GREAT, YOU KNOW, CUT ME MY CHECK. RIGHT? BUT IF HE. IF HE LOOKED AND HE SAW, WELL, YOU TOOK OUT DEPRECIATION HERE OF 17 MILLION, HE WOULD KNOW WE DIDN'T REALLY EXPENSE THAT.

THAT'S NOT AN ACTUAL EXPENDITURE. SO WE WOULD BACK THAT OUT IN PRIVATE BUSINESS, AND WE WOULDN'T BE AT 89. WE WOULD BE AT 71 MILLION IN TOTAL COSTS. SO YOU ACTUALLY SPENT 71,600 TO DO BUSINESS IN THAT ENTERPRISE FOR 25.

CORRECT. NOW, BUT THAT'S NOT A PART OF THE AVAILABLE FUNDS CALCULATION. WELL, AND I DON'T KNOW THAT. I DON'T KNOW THAT.

THAT'S MY CONTENTION. LIKE, I DON'T KNOW THAT I'M QUALIFIED OR INTELLIGENT ENOUGH TO SAY THAT IT SHOULD BE A PART OF YOUR AVAILABLE FUNDS CALCULATION. WHAT I'M TRYING TO GET TO IS HOW MUCH MONEY WAS LEFT IN THAT ACCOUNT AT THE END OF THE YEAR. SO IF WE TAKE THAT, WE DIDN'T HAVE A PROFIT.

RIGHT. AN INCOME RIGHT OVER THERE OF 11 MILLION. WE HAD AN INCOME OF 29 MILLION.

SO AGAIN, IT'S APPLES TO ORANGES. AND I KNOW, AND I CAN TELL YOU. LET ME, LET ME SIDEBAR HERE A LITTLE BIT. I DID SECURITIES AND EXCHANGE REPORTING FOR HASTINGS ENTERTAINMENT. I DON'T KNOW IF Y' ALL EVER SHOPPED IN THEIR STORES WHEN THEY WERE HERE.

THAT. THAT'S WHAT I DID PRIOR TO COMING TO THE CITY. AND ON OUR PROFIT AND LOSS STATEMENTS, WE SHOWED DEPRECIATION BECAUSE GASB, GOVERNMENT ACCOUNTING, OR EXCUSE ME, THAT ONE, IT WAS FASB, FEDERAL ACCOUNTING STANDARDS BOARD, REQUIRES YOU TO SHOW DEPRECIATION. YOU HAVE TO SHOW AN ACCRUAL BASIS ON THIS INCOME STATEMENT.

HOWEVER, WHEN YOU GO TO YOUR CASH FLOW, WE ALWAYS TOOK DEPRECIATION OUT BECAUSE YOU'RE RIGHT, YOU'RE NOT SPENDING MONEY ON DEPRECIATION. NO CASH IS GOING OUT THE DOOR. BUT FOR YOUR PROFIT AND LOSS OR YOUR INCOME STATEMENT OR YOUR STATEMENT OF NET POSITION, YOU HAVE TO INCLUDE THAT DEPRECIATION FOR MEETING THE STANDARDS THAT WE HAVE TO MEET ON OUR REPORTING, BUT FOR CASH BASIS, WHICH WE'RE LOOKING AT FOR OUR CASH FLOW, WHICH WE WANT TO LOOK AT FOR AVAILABLE FUNDS, BECAUSE WE KNOW DEPRECIATION DOESN'T IMPACT YOUR AVAILABLE FUNDS.

SO IT'S NOT EVEN INCLUDED ANYWHERE IN THAT CALCULATION.

YOU TAKE IT OUT. SO THAT'S WHY YOU CAN'T NECESSARILY LOOK AT PAGE 36 TO GET TO ANYTHING YOU WANT TO GET TO ON AVAILABLE FUNDS. OKAY, SO, BUT JUST. JUST TO THROW IN THERE, LIKE MY PRIVATE EXPERIENCE VERSUS GOVERNMENT EXPERIENCE. I'VE SEEN IT THAT WAY. BOTH. BOTH SIDES. OKAY, WELL, WELL, LOOK, LET'S GO BACK TO THE 29 MILLION. SO THAT ENTERPRISE RAN A NET GAIN OF 29 MILLION DURING FY25. IS THAT TRUE.

WITHOUT THE DEPRECIATION AND IT WOULD BE TRUE. OKAY, OKAY. SO LIKE WITHOUT THE DEPRECIATION, WHICH IS NOT A CASH ITEM, YOU DIDN'T WRITE A CHECK. AND WE'RE NOT TRYING TO SPEND THE DEPRECIATION. WE AGREE ON THIS. I'M NOT TRYING TO SPEND THE LINE ITEM THAT WE HAVE LISTED UNDER AN EXPENSE OF 17 MILLION. SO, WE'RE NOT GOING TO SPEND THE DEPRECIATION AND YOU SAID WE CAN'T. AND I'M NOT TRYING TO. SO, IF YOU DON'T FACTOR THE DEPRECIATION IN, WHICH IS NOT AN EXPENDITURE FOR THIS, THIS PURPOSE OF ME TRYING TO UNDERSTAND HOW MUCH THE NET GAIN POSITION OF THAT COMPANY WAS FOR THE YEAR, WE CAN AGREE $29 MILLION WAS THE NET GAIN ON OPERATING INCOME. YES.

OKAY, THEN YOU HAVE THE OTHER EXPENDITURES, YOU KNOW, BELOW THAT. SO YOU STILL HAVE TO FACTOR THOSE. YOU HAVE INTEREST AND FISCAL CHARGES, IS THAT RIGHT? RIGHT. AND I THOUGHT THAT GOT ADJUSTED, BUT I GUESS NOT. SEEMED LIKE THAT INTEREST WAS CRAZY HIGH, BUT WHATEVER IT IS. RIGHT, SO, SO IF YOU TAKE THAT DOWN, CAN YOU THEN GO BACK TO YOUR EXAMPLE AND SHOW ME THAT THAT 29 MILLION IS CALCULATED TO THE 19. SO, SO YOU'RE WORKING FROM POSITION. IT DOES NOT ROLL TO CASH. IT ROLLS DOWN TO THE BOTTOM OF THE BALANCE SHEET. NOT THE TOP, BUT, BUT IN YOUR, IN YOUR CALCULATION, IN ORDER TO GO INTO THE NEXT YEAR OF 26, YOU TAKE WHATEVER THE NET POSITION GAIN IS PLUS THE, THE AVAILABLE FUNDS CALCULATION.

NO. OKAY, SO YOUR AVAILABLE FUNDS CALCULATION IS TOTALLY SEPARATE FROM WHAT THE

[02:20:01]

AND, AND THEN OUR JOB IS TO HAVE SOME LEVEL OF OVERSIGHT. RIGHT. AND SO LIKE HOW, HOW ARE WE DOING AT A COUNCIL AND GIVING GOOD DIRECTION IF THE ENTERPRISE NET GAIN ISN'T FACTORED IN ITS, IN ITS STARTING POSITION. SO WHEN WE SIT DOWN TO LOOK AT YOUR BUDGET HERE, IF YOU LOOK BACK, IT SAYS REVISED ESTIMATE, YOU EXPECT TO FINISH THE YEAR DOWN HERE AT 19:6.

ON A CASH BASIS.

ON A CASH BASIS. SO AFTER DOING BUSINESS IN 26 ON AN ACCRUAL BASIS. OKAY, GO AHEAD. ON AN ACCRUAL BASIS, WHICH IS WHAT THE ACTOR IS.

RIGHT. SO WE'RE APPLES TO ORANGES BECAUSE THAT DEPRECIATION IS ACCRUAL PART AND THE BUDGET IS A CASH BASIS.

SO THE AVAILABLE FUNDS ONLY GIVES YOU WHAT YOUR CASH IS TO SPEND. OKAY. AND ALL THIS COMES DOWN TO THE CIP, RIGHT? HOW MUCH YOU CAN GO GET DONE IN ADDITIONAL PROJECTS, HOW MUCH YOU CAN REINVEST IN THAT, THAT ENTERPRISE.

RIGHT. AND WE ARE ASKED TO WEIGH IN ON THAT. RIGHT? YES, ABSOLUTELY. SO WE, WE DO NEED TO KNOW HOW MUCH CASH IS AVAILABLE FOR ONE TIME SPENDS THAT ARE GOING TO CIP.

RIGHT. AND THEN WE DO NEED TO KNOW WHAT THE NET GAIN POSITION IS FROM LIKE THE END OF THE BUSINESS YEAR. RIGHT.

IT DOESN'T ROLL INTO YOUR AVAILABLE FUNDS CALCULATION.

SO THE RESERVES MATTER TO US THOUGH, RIGHT? FOR YOU, YES. BUT FOR YOUR CASH LIQUIDITY, WHAT IS AVAILABLE TO SPEND FOR THE YEAR IS NOT FACTORED IN THE NET POSITION. WHAT HAPPENS ON THE INCOME STATEMENT AT THE END OF THE YEAR? OKAY, WHAT DID WE START THE NET POSITION WITH? THE AVAILABLE FUNDS CALCULATION. WHAT DID WE START WITH IN 26? THIS NUMBER HERE SHOWING 22 MILLION ON MY PAGE 32 OF MY BUDGET.

RIGHT. IS THAT THE NUMBER? BECAUSE WHEN WE VOTED THIS IN, WE SAID WE STARTED WITH 7 MILLION. WE HAD AN ADJUSTMENT BACK THEN AND COUNCIL, I, I'LL MOVE IT FORWARD HERE.

GIVE ME A LITTLE BIT MORE TIME.

DO WE. ARE WE TALKING ABOUT CASH? THIS ONE YOU'RE TALKING. THE ORIGINAL WAS 22.2. YES. WHEN WE STARTED THE YEAR. SO WE STARTED SEWER AND WATER WITH 22 MILLION. THAT WAS THE AVAILABLE FUNDS CALCULATION FOR THE YEAR BEFORE. YES. THIS IS ALL JUST BUDGET. OKAY, SO IN 25 WE FINISHED ACCORDING TO THE ACFR WITH THE 19 MILLION. SO UNDERSTAND ON THAT 22.2. THE ACFR IS NOT COMPLETED COMPLETE AT THAT POINT IN TIME BECAUSE. WELL, NO, IT WOULD BE COMPLETE AT THAT POINT IN TIME WHEN WE BUDGET.

SORRY, JUST TO PROVIDE SOME CONTEXT TO IT, THE NUMBERS WE'RE LOOKING AT ARE CALCULATED NUMBERS FROM THE ACFR. AND AS WE PRESENTED, WE SELECTED SOME ACCOUNTS TO ADD TO IT TO COME UP WITH WITH THE AVAILABLE FUNDS. AND CIRCLING BACK TO THE ACFR, IF YOU LOOK ON PAGES 38 AND 39, YOU HAVE THE STATEMENT OF CASH FLOWS AND THAT'S WHAT GIVES YOU YOUR CASH FROM THE ACFR. AND IF YOU LOOK DOWN TO THE RECONCILIATION OF OPERATING INCOME OR LOSS TO NET CASH, YOU NOTICE THAT WE ADD DEPRECIATION AND AMORTIZATION HERE TO GET TO RECONCILE THE NET INCOME PART.

SO THAT'S WHERE THAT FITS INTO YOUR ASSESSMENT. I JUST WANTED TO POINT THAT OUT.

COMPREHENSIVELY.

LIKE OVERALL, LIKE BIG PICTURE. ALL OF THE MONIES THAT ARE HELD WITHIN THE COA ARE REPRESENTED EVERY YEAR IN THE BUDGET. YES OR NO? WHAT'S AVAILABLE CASH? YES. IN THE CALCULATIONS.

WELL, YOU WALKED US THROUGH THE CALCULATIONS

[02:25:02]

BUT IF YOU'RE, BUT IF YOU'RE WORKING THAT CALCULATION THROUGH TO THE BUDGET, ESSENTIALLY YOU'RE BRINGING IN THAT ITEM, THAT COMPONENT.

SO WHAT WE JUST SAID, AND LET'S SIMPLIFY THIS, SO WHAT WE JUST SAID IS WE'VE GOT INVESTMENTS. RIGHT. AND COMMITMENTS THAT AREN'T RECOGNIZED IN THE BUDGET BOOK. THEY'RE CALCULATED THROUGH AN AVAILABLE FUNDS CALCULATION WHERE YOU'RE PICKING UP THAT $81 MILLION WORTH OF COMMITMENTS. YOU STILL GOT TO GO DO THAT WORK.

RIGHT? RIGHT. OKAY. HOW DOES COUNCIL EVER PROVIDE ANY OVERSIGHT TO THAT? LIKE, I THINK FOR US, WE HAND THIS OVER TO AN AUDIT FIRM, THEY AUDIT IT. AND THEY SHOULD BE LOOKING AT THAT NUMBER. NOT ON THAT. THEY'RE. THEY'RE NOT.

NO. YEAH. SO, LIKE, WOULDN'T.

IF I SAID THAT OUR BUDGET DOESN'T REPRESENT ALL OF THE MONIES HELD WITHIN THE COA, THAT WOULD BE MORE IN LINE WITH YOUR STATEMENT. WE DO HAVE. NO, I WOULD. SO SAY THAT.

SAY THAT AGAIN. HOW. HOW IS THE. AND I WANT TO KEEP IT SIMPLE. YOU'VE GOT COMMITMENTS IN CIP THAT YOU'RE CALCULATING IN THE AVAILABLE FUNDS BALANCE SO THAT WE DON'T GO AND APPROPRIATE THAT MONEY AGAIN.

RIGHT. IN NOTE 12 AS WELL. SO YOUR AVAILABLE FUNDS CALCULATION IS CALCULATED USING THE NUMBERS DIRECTLY FROM YOUR AUDITED ACFR. AND THAT'S WHAT WE'VE WALKED YOU THROUGH TODAY. RIGHT. SO THAT IS CALCULATED BASED ON THE END OF THE YEAR. THESE WERE OUR AUDITED NUMBERS. SO WE KNOW THIS IS YOUR AVAILABLE FUNDS.

THIS IS WHERE YOU START.

OKAY. THEN YOUR BUDGET IS CALCULUS IS PREPARED FOR REVENUES AND EXPENSES. SO THEN IT DOES. IT DOES CONSIDER ALL OF THE MONIES THAT ARE HELD WITHIN THE CITY. CORRECT.

OKAY. SO THE BUDGET'S TOTALLY COMPREHENSIVE. AND THEN WHEN THAT AUDIT GETS DONE EVERY YEAR, THAT'S A COMPREHENSIVE AUDIT, LIKE YOUR ACT FOR.

RIGHT. SO WE'RE CHANGING NOTE 12 FROM 288 IN COMMITMENTS DOWN TO 207. WE'RE STATING THAT WE OVERSTATED THAT COMMITMENT, RIGHT? THAT'S CORRECT. OKAY.

LIKE THE. THE OVERSIGHT IN IS LIKE, HOW DO WE KNOW THAT? RIGHT.

YOU'VE ALREADY DONE ALL THESE CALCULATIONS. YOU'VE PULLED FORWARD FORWARD THE CASH. IF WE GO FROM 288 DOWN TO 207, WHERE DOES THAT EVER LINE UP WITH THESE NUMBERS? LIKE, SO ARE WE ADDING THE 81 MILLION, YOU KNOW, RECONCILING THOSE TOGETHER? SO THE WAY THAT WE IDENTIFIED THAT ORIGINALLY MARE IS ONCE THE AVAILABLE CASH CALCULATIONS WERE RAN AND WE STARTED LOOKING AT THEM, WE THOUGHT, WAIT A MINUTE, SOME OF THE BALANCES, THE WAY THESE ARE COMING IN, LOOK OFF. AND SO WE STARTED TO DIG INTO THAT. WE LOOKED INTO CIP, AND THAT'S WHEN WE REALIZED, WAIT A MINUTE. THERE ARE PROJECTS ON HERE THAT WE KNOW WE'VE HAD EXPENDITURES FOR, BUT IT'S SHOWING ZERO EXPENDITURES, AND THAT'S BECAUSE THEY WERE CAPITALIZED AND SO, PERFECT EXAMPLE, THE CITY HALL PROJECT CAME IN. IT HAD A BUDGET, BUT IT DIDN'T HAVE ANY EXPENDITURE SHOWING.

SO THAT'S WHERE WE QUICKLY IDENTIFIED THAT. WE QUICKLY WENT BACK AND LOOKED AND SAID, WAIT A MINUTE, J.D. EDWARDS REPORTED IT ONE WAY, WORKDAY REPORTED AT ANOTHER, AND FIGURED THAT OUT. AND THAT'S WHERE THE STAFF THEN WENT BACK, REFIGURED THAT NOTE 12 PROACTIVELY REACHED OUT TO CLA TO SAY, HERE'S WHAT WE'VE GOT GOING ON WITH THIS NOTE. ADVISE US, DO WE NEED TO REISSUE IT? WHAT SHOULD WE DO? AND WE WENT FROM THERE. SO THAT'S WHERE THAT WAS IDENTIFIED, AND THAT'S WHERE YOU WOULD FIND SOMETHING LIKE THAT IS WHEN YOU'RE LOOKING AT YOUR NUMBERS, YOU'RE SAYING, WAIT A MINUTE, I'M NOT SURE. AND ONE GREAT WAY IS JUST TO LOOK AT HERE.

HERE'S WHERE WE THOUGHT WE WERE GOING TO START THE YEAR IN AVAILABLE FUNDS. HERE'S WHERE WE REALLY DID. IF THOSE TWO NUMBERS ARE OFF, THEN THAT'S A LITTLE FLASHLIGHT TO US TO SAY, HEY, WE NEED TO DIG INTO THIS AND LOOK FURTHER AND INSURE. OKAY, SO IF WE JUST WORK THROUGH YOUR AVAILABLE FUNDS CALCULATION, WE DON'T SEE ALL THAT WORK.

YOU PERFORM ALL THAT AND YOU GIVE US A NUMBER TO START THE YEAR. AND I KNOW WHERE THIS REALLY GOT US KIND OF EYES OPEN WAS YOU GAVE US THE NUMBER OF LIKE, NEGATIVE 4 MILLION OUT OF FLEET. AND THAT'S BECAUSE OF NOTE 12, WHICH STARTED THE WHOLE CONVERSATION WITH CLA AND WORKING AND CORRECTING IT.

OKAY? SO I KNOW I'M NOT GOING TO GET ANY MORE CLEAR IN HERE, AND I APPRECIATE YOU BEING WILLING TO SHOW US THAT IN HERE BECAUSE I THINK IT'S GOOD THAT PEOPLE CAN SEE HOW COMPLEX ALL THIS IS. I STILL WOULD LIKE SOME TIME JUST TO SIT DOWN WITH YOU GUYS AND BE ABLE TO WORK THE MATH PROBLEM AND BE ABLE TO TAKE SOME TIME AND LOOK AT THE ACFR, TO SEE HOW THAT AVAILABLE FUNDS IS CALCULATED.

THEN I'D LIKE TO SEE, LIKE, WHERE WE DO IT IN FLEET AND THESE OTHERS. AND SO I'M WILLING TO JUST INVEST MY TIME WITH YOU NOT IN HERE, NOT TAKE

[02:30:01]

YOU'RE AVAILABLE TO UNDERSTAND MORE. BECAUSE IF WE HAVE A NET GAIN OF 29 MILLION COMING OUT OF, YOU KNOW, 25, ONE WOULD THINK YOU WOULD TAKE WHATEVER YOUR NET STARTING POSITION WAS AND THEN YOU WOULD ADD 29 MILLION TO IT. WELL, LET'S NOT EVEN DO THAT. LET'S TAKE OFF THE. IT DOESN'T ROLL TO CASH, THOUGH.

IT ROSE DOWN TO CASH NET POSITION. IT ROSE DOWN TO THE BOTTOM. I WANT TO HEAR WHAT YOU'RE SAYING.

BUT IN, IN THE CHECKBOOK, RIGHT. THE MONEY WAS IN THE ACCOUNT. AT THE END OF THE YEAR, WE'LL HAVE TO GO THROUGH YOUR FINANCIALS AND I HELP YOU CLOSE THEM FOR THE YEAR. THAT'S ALL I CAN DO. OKAY, SO. SO $100 MILLION REVENUE, $71 MILLION EXPENDITURE. THEN WE HAD INTEREST AND FEES OF $14 MILLION. WE ENDED THE YEAR WITH 15 MILLION. AND IT WROTE TO YOUR EQUITY ON YOUR FINANCIAL STATEMENT.

OKAY. AND SO WITH THAT 15 MILLION, YOU PULL THAT FORWARD. IT'S BEING RECOGNIZED AS 19 MILLION IN YOUR REVISED ESTIMATE BECAUSE OF PREVIOUS BALANCES THAT WERE THERE. AND IT INCORPORATES ALL THE ROLL OFF OF COMPLETED PROJECTS VERSUS THE BORROWED MONIES THAT CAME IN. AND THEN OF COURSE, THERE IS NO SUPPORTING DOCUMENTS FOR US ON THIS. YOU GUYS HAVE ALL THOSE, BUT YOU GO THROUGH AND YOU VALIDATE ALL THAT. AND INTERNAL AUDITOR DOES AS WELL. HE REVIEWED THE WORK THAT WAS PERFORMED. YES. OKAY. YEAH, I THINK I JUST WANT TO LEARN A LITTLE BIT MORE OUTSIDE OF THIS MEETING. DID YOU HAVE SOMETHING JUST READY TO MOVE ON? PROBABLY. SO THANK YOU ALL FOR. GIVE ME A MINUTE TO TRY TO UNDERSTAND THAT IT IS COMPREHENSIVE THOUGH. YOU ARE INCORPORATING ALL OF THE CIP MONIES THROUGH THIS BUDGET IN THAT CALCULATION? YES.

OKAY. MY LAST QUESTION THOUGH WOULD BE LIKE IN THE PURPOSE OF A CIP AUDIT, IT'LL GO THROUGH AND IT'LL PULL EACH PROJECT AND IT'LL GIVE ALL OF THOSE SUPPORTING DOCUMENTS.

SO WE WOULD BE ABLE TO SEE ALL THOSE THAT ARE CLOSED OUT AND VALIDATE THAT THOSE MONIES DID CARRY THROUGH.

BECAUSE I THINK THAT WOULD BE THE OTHER THING THAT FOR US AS REPRESENTATIVES AND FOR THE CITIZENS THAT ARE HEARING THIS, WE'RE CLOSING ALL THESE PROJECTS OUT. WE'RE EXPECTING TO BRING LOTS OF SEWER AND WATER MONIES BACK ON SAVINGS. AND THEN WE DON'T REALLY REALIZE IT WHEN WE'RE LOOKING AT THIS BECAUSE IT'S JUST A PART OF AVAILABLE FUNDS CAN CALCULATION BECAUSE YOU'RE TAKING IT AGAINST YOUR CASH AND INVESTMENTS AS WELL. AND SO IT, IT'S A TOTAL. SO IT, IT'S NOT ITEMIZED WHERE YOU'RE GOING TO SEE SPECIFICALLY THE 43 MILLION. WE'LL SIT DOWN AND WORK THROUGH IT WITH YOU. YEAH, I'LL TRY TO GET SOME TIME WITH YOU NEXT WEEK OR WEEK. I'M OUT NEXT WEEK. I FINALLY GET A VACATION WEEK AFTER. SOUNDS GOOD. I'LL WELCOME YOU BACK.

SO, YEAH, ONE OF THE THINGS THAT I KNOW COMING TO AMARILLO I'M SO GRATEFUL FOR IS THIS THE, THE TALENT WE HAVE IN OUR FINANCE TEAM. SO WITH IT, WITH THE DEGREES, THE EXPERIENCE, CERTIFICATIONS, HOW THE AUDITS PROVED THAT. I'M JUST, I'M ALWAYS JUST AMAZED AT THE TALENT THAT WE HAVE WITH THESE INDIVIDUALS HERE.

AND SO IT'S JUST, WE HAVE AN EXCELLENT TEAM SURVEY. IT'S COMPLICATED STUFF, IT'S HARD TO UNDERSTAND.

BUT SAME TIME I DIDN'T GO TO SCHOOL FOR IT, THEY DID.

AND I'M JUST SO GRATEFUL THAT WE HAVE LOLA AND KATRINA AND JUSTIN AND STEPHANIE AND ALL THOSE WHO WORK THIS STUFF FOR US AND DO THIS. SO I'M REALLY APPRECIATIVE OF ALL OF THEM. HYPOTHETICALLY, IF WE DECIDED TO SPEND 17 MILLION MORE IN DEPRECIATION, IF WE MADE THAT DECISION AND WE ASSUMED THAT THERE WAS $17 MILLION IN THE CHECKING ACCOUNT, WHAT WOULD HAPPEN? YOU WOULD BUST YOUR RESERVES. SO YOU WOULD NOT HAVE, YOU WOULD BE OUT OF COMPLIANCE OF YOUR 90 DAY POLICY. AND THEN WHAT WOULD HAPPEN? YOU WOULDN'T HAVE ENOUGH TO COVER YOUR EXPENSES AND THEN WHAT WOULD HAPPEN? PAYROLL DEPENDS ON EMERGENCY SITUATIONS AND THEN YOUR CREDIT RATING WOULD SUFFER. SO ALL THIS AND THEN WHAT WOULD HAPPEN? I MEAN THEN WHAT WOULD HAPPEN? EVENTUALLY YOU'RE NOT PAYING YOUR BILLS AND THEN THE CITY WOULD GO BANKRUPT. OUR INTO OUR UTILITIES GOES BANKRUPT. AND SO I MEAN I DEALT WITH MY FIRST COMMUNITY IN JETMORE. I HAD TO TURN THEM AROUND BECAUSE THEY WERE HEADING TOWARDS, THEY WERE SPENDING RESERVES BECAUSE THEY THOUGHT THEY HAD DEPRECIATING TYPE THING TO SPEND. I HAD TO STOP THAT. AND WE DID A NICK OF TIME AND THEY WERE ABLE TO GO BACK THE OTHER DIRECTION AND DEVELOP RESERVES. AND THEN WE'VE HEARD MANY TIMES, APPLES AND ORANGES, THAT WE'RE LOOKING AT TWO DIFFERENT, DIFFERENT THINGS. SO WHERE IS THAT 17 MILLION BEING RECOGNIZED AT? I MEAN IT'S DEPRECIATED. I UNDERSTAND.

[02:35:01]

IT'S REFLECTED IN THERE, THE EQUATION. THERE'S TWO SIDES TO IT. AND ONE OTHER WAY THAT MIGHT HELP IN DESCRIBING THE DEPRECIATION IS AS YOU TALK ABOUT, WELL, WE'RE NOT SPENDING THAT 17 BECAUSE IT'S NOT CASH. SO IT'S NOT GOING ANYWHERE. THAT 17 LEFT YOUR BANK ACCOUNT YEARS AGO. WHEN WE ORIGINALLY PURCHASED THOSE ASSETS, WE HAD TO PAY THE FULL AMOUNT. AND SO IT LEFT THE BANK ACCOUNT BACK THEN. AND SO THAT'S WHY WE USE THE BALANCE SHEET AND THE CASH ACCOUNTS TO CALCULATE YOUR AVAILABLE FUNDS. AND WE DON'T PULL IN YOUR REVENUE AND EXPENSE ACCOUNTS, BECAUSE EVEN THOUGH DEPRECIATION IS AN EXPENSE AND WE HAVE TO SHOW IT IN THE PEER PERIOD THAT THAT ASSET IS BEING USED. SO WE DO IT OUT OVER HOWEVER MANY YEARS THAT CASH HAS BEEN OUT OF THE BANK FOR A LONG TIME.

NOW, LET'S EXPAND ON THAT.

BECAUSE YOU CAN'T USE YOUR CAPITAL ASSETS IN YOUR AVAILABLE FUNDS CALCULATION BECAUSE YOU CAN'T EASILY CONVERT THAT TO CASH.

RIGHT, CORRECT. GREAT. GREAT POINT, KATRINA.

AND EASILY CONVERTED TO CASH.

CAN WE GET A DEFINITION ON THAT? JUST A VERY HIGH LEVEL DEFINITION, LIKE WITHIN LIKE 30 DAYS.

BE LIKE YOUR HOUSE.

YOU CAN'T USE YOUR HOUSE UNLESS YOU SELL IT OR GO GET DEBT FROM EXTENDING A LOAN FROM IT, WHICH WE USE FOR OUR CREDIT RATING. AND THAT'S HOW WE GOT OUR TWDB LOAN, BECAUSE OUR CREDIT IS SO GOOD AND OUR ASSETS SHOW THAT.

I UNDERSTAND.

YEAH.

MIGHT ADD TO THAT. WE SPOKE TO TEXAS WATER DEVELOPMENT BOARD LAST WEEK, AND THAT'S ONE OF THE THINGS THAT THEY POINTED OUT TO US WHEN WE WERE APPLYING FOR A NEW 60 MILLION, WAS THAT IT'S BECAUSE OF YOUR CREDIT. YES.

APPLY FOR THIS.

YOU HAVE SOME OF THE BEST CREDIT IN THE STATE.

THANK YOU.

DOES THAT MAKE SENSE, COLE? I MEAN, A LITTLE BIT, YEAH. I THINK, YOU KNOW, THE 17 MILLION GETS LINE ITEM MOVED OVER TO THAT OTHER MIDDLE OR THAT OTHER LINE ITEM. WHAT FORM IS THAT? WHAT FORM DOES IT TAKE? I NEED MORE DEFINITION.

CAN YOU ASK THAT AGAIN? WELL, STEPHANIE, YOU DID A GOOD JOB. YOU SAID THAT 17 MILLION IS DEPRECIATED OFF OF THIS LEDGER. IT SHOWS UP OVER ON THE OTHER LEDGER. SO YOU GO UP. IT'S PART OF THE 770 MILLION.

YEAH.

IN WHAT FORM IS IT? IS IT CAPTURED THERE? IT'S A JOURNAL ENTRY.

WELL, BUT I'M SAYING THAT'S 17 MILLION WORTH OF CASH IN THAT ACCOUNT AT THE END OF THE YEAR.

17 MILLION OF EXPENSE, NOT CASH. WELL, SO THE OFFSET IS IN EACH OF THESE ACCOUNTS THAT YOU SEE AS A NEGATIVE ON YOUR BALANCE SHEET, ACCUMULATED DEPRECIATION SO WE EXPENSE, FOR EXAMPLE, ON THAT FIRE TRUCK. LET'S SAY WE'RE GOING TO KEEP IT FOR 10 YEARS.

WE DON'T HAVE TO GO BACK THROUGH IT. OKAY, SORRY, LET ME CHANGE MY TERM. I SAID CASH.

MY MISTAKE. SO THAT'S 17 MILLION OF AN EXPENDITURE. SO IT SHOWS UP. YOU JUST DID A GOOD JOB. YOU SAID, WHERE ARE WE CAPTURING THAT? WHERE DOES IT COME IN? AND SO IT SHOWS UP UNDER, YOU KNOW, ACCUMULATED DEPRECIATION. IS THAT THE RIGHT LINE? YES. ANY OF THESE LINES THAT ARE NEGATIVE, THERE'S A PIECE OF THAT, 17 IN ALL OF THEM.

SO IF IT'S AN EXPENDITURE, WHAT FORM WAS IT EXPENDED IN? THROUGH A JOURNAL ENTRY.

OKAY. AND THEN IF IT'S RECOGNIZED, IN WHAT FORM IS IT RECOGNIZED? IT'S RECOGNIZED AS THAT EXPENSE ON YOUR INCOME STATEMENT AND AS A CREDIT TO THE ASSETS ON YOUR BALANCE SHEET.

SO ESSENTIALLY, WHAT I HAVE A. AND MY ISSUE IS, IT'S JUST MY ISSUE. YOU DON'T HAVE AN EXPENDITURE THAT'S A JOURNAL ENTRY. YOU HAVE AN EXPENDITURE OR YOU HAVE A JOURNAL ENTRY. RIGHT? SO, LIKE, THIS IS NOT A TAX EVALUATION.

THIS ISN'T US FIGURING OUT OUR INCOME TAX WHERE WE'RE ALLOWED TO TAKE CERTAIN DEDUCTS. IT'S IN A ENTERPRISE AS A EXPENDITURE OF 17 MILLION. SO IT NEVER LEFT THE ACCOUNT.

YOU CAN'T HAVE AN EXPENDITURE WITHOUT A JOURNAL ENTRY. AND EVERY JOURNAL ENTRY REQUEST REQUIRES TWO SIDES. THEY HAVE TO BE BALANCED.

I UNDERSTAND. SO, LIKE, IF IT'S IT, WHAT VALUE IS IT RECOGNIZED THAT. ARE THOSE DOLLARS, IS THAT $17 MILLION? WELL, YOUR VEHICLE DEPRECIATES IN VALUE. SO THIS IS DEPRECIATING THE VALUE OF THOSE ASSETS.

SO IF YOU BOUGHT THAT VEHICLE IN 23, YOU PAID FOR IT IN 23.

RIGHT. AS AN EXPENDITURE, YOU PAID FOR IT IN 23 DOT AND YOU SET IT UP AS

[02:40:01]

BUT YOU PAID FOR IT IN 23 WITH WHAT? WITH CASH. SO ASSET GOES UP A MILLION, CASH COMES DOWN A MILLION. THAT'S YOUR ENTRY IN 2023. IN 2024, YOU HAVE EXPENSIVE DEPRECIATION FOR A HUNDRED THOUSAND. YOU CREDIT ACCUMULATED DEPRECIATION FOR A HUNDRED THOUSAND. THAT'S YOUR ENTRY. WHAT THAT LOOKS LIKE ON THAT 24 STATEMENT IS I HAVE DEPRECIATION EXPENSE OF A HUNDRED THOUSAND AND I HAVE A NET ASSET OF 900,000.

OKAY, I FOLLOW YOU 100% ON LIKE A BALANCE SHEET AND THINGS THAT WE ARE SAYING, YOU KNOW, GASB AND ALL OF THE ACCOUNTING PRACTICES.

AND MY CONCERN, OR MY QUESTION IS IN LOOKING AT THAT ENTERPRISE THAT HAD A NET CASH POSITION OF, YOU KNOW, SAY 29 MILLION, IF YOU DON'T FACTOR IN THE DEPRECIATION.

IN CONVERSATIONS WITH CLA AND ASKING HIM HEY, IS.

DOES THAT EVER COME OUT OF THE ACCOUNT? YOU KNOW WHAT HE SAID IS LIKE NO, THAT NEVER LEFT YOUR ACCOUNT.

DOESN'T GO ANYWHERE.

LIKE IT'S NOT, IT'S NOT AN ACTUAL EXPENDITURE.

SO IT'S LISTED UNDER EXPENDITURES ON THAT PAGE. AND SO THAT'S, THAT'S MY DIFFICULTY WITH IT.

IT'S A JOURNAL ENTRY. IT'S.

IT'S NOT AN ACTUAL EXPENSE.

I THINK WHAT WE WOULD SAY IT IS, IT IS AN EXPENDITURE UNDER GASB, UNDER ACCOUNTING.

WHERE DID IT GO? IT'S A NON CASH ACCOUNT EXPENDITURE. AND SO IT HIT YOUR INCOME STATEMENT AS AN EXPENDITURE. IT HIT YOUR BALANCE SHEET. IT JUST DIDN'T HIT CASH. IT HIT THE ASSET. IT REDUCED THE VALUE OF YOUR ASSET FOR THE USE OF THAT ASSET ASSET OVER THE PRIOR YEAR.

RIGHT.

SO THAT MAKING SENSE.

INCREASE YOUR NET WORTH.

BUT UNLESS YOU'RE GOING TO SELL YOUR WATER UTILITIES, YOU'RE NOT MAKING ANY MONEY.

YOU CAN'T SPEND IT AGAIN. SO YOU'RE WORTH A BILLION DOLLARS.

SELL YOUR UTILITIES. WE CAN THEN SPEND IT SOMEWHERE ELSE.

BUT WE, WE CAN. IT'S JUST ON THE BOOKS AS A BOOK VALUE.

AND IF YOU WERE TO TRY TO GO SELL THAT FIRE TRUCK AFTER A YEAR, YOU'RE NOT GOING TO GET A MILLION DOLLARS FOR IT. IT MIGHT BE WORTH THE 900,000 THEN. THAT'S WHY YOU HAVE TO RECOGNIZE THAT DEPRECIATION EXPENSE TO REDUCE THE ASSET DOWN TO THE, THE NET VALUE.

I UNDERSTAND THAT IN, IN THE WAY IN WHICH IT'S, IT'S BEING BOOKED. SO DON'T HAVE ANY PROBLEM WITH THE WAY IT'S BOOKED. BUT LIKE IN, IN WHAT PRESCOTT SAYING IS, WELL, WHAT IF WE WANTED TO SPEND THAT 17 MILLION ON NEW POT WATER AND, AND SEWER PIPE? LIKE WHAT HAPPENS? WELL, OUR, OUR NET VALUE WOULD COME DOWN.

OUR RESERVES WOULDN'T COME DOWN.

AND I THINK IF I WAS JUST UNDERSTANDING HIS QUESTION, IT WAS MORE IF WE SPEND THAT, WE'RE GOING TO OVERSPEND BECAUSE WE HAVEN'T INCLUDED IT IN YOUR AVAILABLE FUNDS. WE'RE NOT SEEING THAT DEPRECIATION IS AVAILABLE TO.

WOULD BE TRUE IF THAT WAS AN EXPENDITURE THAT CAME OUT OF THE CHECKING ACCOUNT.

BUT IT. YOU'RE SAYING IT'S A JOURNAL ENTRY.

YEAH.

AS STEPHANIE MENTIONED EARLIER, IT CAME OUT OF YOUR CHECKING ACCOUNT YEARS AGO WHEN THE ASSET WAS PURCHASED.

SO IT'S ALREADY MONEY THAT'S GONE. BUT IT WOULD HAVE BEEN RECOGNIZED YEARS AGO IN THOSE EXPENDITURES.

NOT AS AN EXPENDITURE. NO, AS AN ASSET. IT'S NOT RECOGNIZED AS AN EXPENDITURE EXPENDITURE UNTIL YOU START TO DEPRECIATE IT.

SO THE EXPENDITURE IS DELAYED AND RECOGNIZED OVER THE LIFE OF THE ASSET WHILE THE CASH IS REMOVED FROM YOUR CHECKING ACCOUNT IMMEDIATELY.

OKAY. MY INTENT WITH THE QUESTION WAS IF THAT MONEY WAS AVAILABLE TO SPEND, I THINK EVERYONE IN THIS WOULD WANT TO BE ABLE TO UTILIZE AND FREE UP THAT CASH. WE KNOW IF WE USE THAT CASH NOW FROM THE RESPONSE OR THE PERCEIVED CASH, THAT WE ARE GOING TO KILL OUR RESERVES. AND ULTIMATELY WE ARE WRITING HOT CHECKS AT THAT POINT BECAUSE THE CASH IS NOT THERE. THAT, THAT WAS MY INTENT. IS THAT CORRECT? THAT'S CORRECT, YES.

COUNCILMAN, DID YOU HAVE ANYTHING.

WELL, MAYOR, JUST LET ME, LET ME JUST KIND OF MAKE SURE I'M GOOD.

YOU'RE.

YOUR THINKING IS THAT SOMEHOW WE'RE USING INCORRECT ACCOUNTING METHODS AND WE HAVE MORE MONEY AVAILABLE THAN IS SHOWING HERE BECAUSE WE'RE NOT USING CORRECT ACCOUNTING.

I THINK YOU'D HAVE TO SAY GASB. SO MY THINKING IS THAT WE ARE USING GASB ACCOUNTING, WHICH IS CORRECT FOR GOVERNMENT PURPOSES. AND I WAS TRYING TO APPLY AN ENTERPRISE BUSINESS, YOU KNOW, EVAL TO THIS ENTERPRISE. AND I JUST WANTED TO KNOW HOW MUCH THE NET GAIN WAS FOR THAT ENTERPRISE. AND WE GOT HUNG UP IN THIS DEPRECIATION BECAUSE IT'S, IT'S MUCH MORE CLEAR. NOW THE REASON THAT'S A FACTOR IS BECAUSE YOU, YOU INCORPORATE THAT INTO YOUR AVAILABLE FUND BALANCE CALCULATION EVERY YEAR, NOT DEPRECIATION. OH, WELL, THEN I'M NOT CLEAR. SO.

SO LIKE THE DEPRECIATION IS NOT PART OF THE AVAILABLE FUND BALANCE CALCULATION.

IT IS NOT. WE DON'T USE ANYTHING OFF OF THAT INCOME STATEMENT. WE JUST USE BALANCE SHEET. WE JUST USE YOUR CASH ACCOUNTS, YOUR CURRENT LIABILITIES, YOUR CURRENT ASSETS.

[02:45:03]

YOU CAN'T GET THAT ANSWER.

WHAT YOU GET IS THIS, AND THIS IS CORRECT ACCOUNTING ACCORDING TO GASB.

SO, AND AGAIN, YOUR AVAILABLE FUNDS IS CALCULATED OFF OF THE ACCOUNTING OFF OF THIS ACFR. SO IT'S ALSO CORRECT.

MY CONTENTION IS I JUST DON'T UNDERSTAND WHY WE CAN'T LOOK AT IT FROM A CASH VIEWPOINT, IF THAT WAS MY QUESTION. SO IF YOU HAD A MAYOR AND COUNCIL THAT SAID, I JUST WANT TO KNOW WHAT'S IN THE CHECKING ACCOUNT DAY ONE, AND I JUST WANT TO KNOW WHAT'S IN THE CHECKING ACCOUNT, DAY 365. AND I JUST WANT TO KNOW THAT CAN. I JUST KNOW THAT, LIKE, THAT SHOULD BE SOMETHING YOU CAN DELIVER, BUT WE HAVEN'T.

AND SO, LIKE, I GET THAT THIS IS THE WAY IT'S DONE. I'M NOT ARGUING THAT. I'VE HAD A QUESTION OF TRYING TO GO THROUGH THE ACFR, TO LEARN, LIKE, YOU KNOW, WHAT, WHAT IS THE NET GAIN POSITION FOR THE YEAR? AND SO MAYBE YOU ARE TELLING ME AND I'M NOT HEARING YOU.

WELL, I KNOW WE'VE GOT OVERSIGHT, BUT AT SOME POINT YOU GOT TO HAVE TRUST. AND I TRUST THE INFORMATION THAT HAS BEEN GIVEN TO US. AND SO, I MEAN, I APPRECIATE GOING, BUT IT'S SOMETHING, I MEAN, UNLESS WE'RE ALL GOING TO GO GET MASTER'S DEGREES IN ACCOUNTING, I CAN UNDERSTAND WHY THIS IS DIFFICULT, BUT AT SOME POINT IN OUR RELATIONSHIP, WE'VE GOT TO HAVE TRUST IN THAT INFORMATION. AND I DON'T WANT TO SPEAK FOR COUNCIL. I KNOW IT'S HARD TO PUT BUDGETS LIKE THIS TOGETHER AND THE DIFFICULTY AND CHALLENGE IS IT. AND AT THE END OF THE DAY, I JUST WANT TO KNOW, FROM MY PERSPECTIVE, I HAVE TRUST IN THE INFORMATION THAT YOU'RE GIVING ME. SO THANK YOU.

WELL, AND I APPRECIATE THAT LEVEL OF TRUST, AND I THINK IT'S A GREAT LEVEL OF TRUST THAT IS PUT INTO THE STAFF BECAUSE WE DON'T SEE ANY SUPPORTING DOCUMENTS, WE DON'T SEE THE CHECKING ACCOUNTS, WE DON'T GET THOSE EASY QUESTIONS ANSWERED. SO IT'S ALL TRUST, REALLY, AND THEN THE TRUST AND THEN VERIFY.

RIGHT. THERE'S A PROCESS FOR THAT. AND I THINK THIS COUNCIL'S DOING THAT THROUGH, YOU KNOW, THE ACFR AND TRYING TO UNDERSTAND AND THEN, YOU KNOW, THE AUDITS. SO I, I THINK YOU'RE SAYING IT VERY WELL, COUNCILMAN SIMPSON.

AND, AND, YOU KNOW, MY FRUSTRATION IS NOT WITH STAFF AT ALL. MY FRUSTRATION IS WITH PROCESS.

AND, AND I'M NOT THE FIRST GUY TO SIT UP HERE EXTREMELY FRUSTRATED WITH GOVERNMENT ACCOUNTING VERSUS PRIVATE BUSINESS. AND SO, YOU KNOW, MY, MY EXPERTISE COME THROUGH PRIVATE BUSINESS AT A VERY SMALL LEVEL. AND IT IS A DIFFICULT THING FOR ANYBODY TO TRY TO UNDERSTAND THE GOVERNMENT VIEWPOINT OF HOW AND WHY YOU GUYS ARE ALLOWED TO DO TRANSFERS. RIGHT. AND SO IT'S JUST DIFFICULT TO SEPARATE IT AND UNDERSTAND IT. AND SO I HOPE YOU GUYS HEAR, AS WE WRAP UP THIS ITEM, LIKE, IT'S NOT AN ISSUE OF STAFF, IT'S JUST A DESIRE TO DO THE JOB WELL AND TO ACTUALLY UNDERSTAND. SO, LIKE, IF ANYBODY THINKS, LIKE I'M DIGGING BECAUSE I DON'T TRUST THE STAFF, LIKE, IT REALLY IS NOT THE POINT.

THE POINT IS I'M DIGGING BECAUSE I JUST WANT TO DO A GOOD JOB. AND YOU GUYS ARE SAYING, WE NEED MORE MONEY. WE NEED THIS. WE HAVE ALL THESE PROBLEMS. AND WHEN YOU SIT ON THIS SIDE OF THE TABLE AND YOU REALIZE THESE ISSUES ARE ENORMOUS. RUNNING A CITY IS ENORMOUS TASK. AND THERE'S NO END TO THE PROBLEMS AND THE WATER MAIN BREAKS AND THE PERSONNEL ISSUES. AND SO I JUST WANT TO DO THE BEST JOB I CAN TO SAY I, I LOOKED IN EVERY DRAWER, I TURNED OVER EVERY ROCK, AND IF THAT'S THE ROCK YOU'RE SITTING ON, LIKE I'M GOING TO TELL YOU TO MOVE, I WANT TO KICK IT OVER. DOESN'T MATTER WHO'S SITTING ON THAT ROCK. I, I JUST WANT TO KNOW I DID A GOOD JOB. AND SO IT'S A HEART BEHIND IT OF SERVICE, BUT I KNOW IT COMES ACROSS INCORRECT. SO FOR THAT I APOLOGIZE. AND IF I COULD DO IT DIFFERENT, I WOULD. BUT THANK YOU FOR THE CALCULATION, KATRINA, AND I LOOK FORWARD TO GETTING A MINUTE TO DIGEST IT. FREEMAN, BACK TO YOU.

SO WE COULD DO TWO THINGS. WE COULD EITHER DO THE HOT TAX DISCUSSION OR DO WE. YOU WANT TO GO AHEAD AND GO THROUGH THE SUPPLEMENTALS THAT ARE RANKED HERE AND THEN FOLLOW BACK UP ON THE HOT TAX SINCE WE'RE LIMITED ON TIME.

WELL, I THINK OUR TIME'S BETTER SPENT ON SUPPLEMENTALS. WE COULD DO HOT TAX START THERE IF WE CAN PULL UP. THE FIRST ONE WE'RE GOING TO GO OVER IS THE FIRST PAGE ON THE SHEETS THAT I HANDED OUT. SO 7.2 MILLION AVAILABLE FOR GENERAL FUND RECURRING EXPENSES. DID YOU FIND THAT

[02:50:12]

FIRST LINE.

THERE WE GO.

ALL RIGHT. SO SPENT YESTERDAY EVENING WORKING THROUGH THE VABLE FUNDS AND THE 19 MILLION OF ASP IN GENERAL FUNDS SPECIFICALLY.

SO THIS IS A CONSTRAINED VERSION BASED ON THE FEEDBACK WE WERE HEARING FROM COUNCIL RELATED TO PERSONNEL. AND THEN THE REMAINING 2 MILLION THAT WE COULD ALLOCATE TO THE RECURRING REQUESTS THAT WE HAD FROM ALL DEPARTMENTS IN THE GENERAL FUND ON THIS FIRST PAGE. SO JUST TACKLING THE PERSONNEL PIECE FIRST. WANT TO THROW OUT A POSSIBILITY FOR THE CIVILIAN SIDE OF A 2% COST OF LIVING ADJUSTMENT THAT WILL HELP US STAY COMPETITIVE ACROSS ALL LEVELS REGARDLESS OF THE COMPENSATION STUDY. SO THIS WOULD JUST IMPACT EVERYONE. THEN WE HAD THE CIVILIAN COMPENSATION STUDY, PHASE TWO IMPLEMENTATION. THIS IS BRINGING THOSE THAT ARE BELOW MARKET TO TRY AND GET THEM BACK IN RANGE TO BE MORE COMPETITIVE. THAT'S 444,000. THE 1% CIVILIAN MERIT PAY FUND. I ADDED FUND TO IT BECAUSE IN THE PAST LIKE CURRENT YEAR WE HAD 2% MERIT.

SO WE USE THE SAVINGS FROM NOT EVERYBODY GETTING 2% TO HAVE MERIT PAY WHERE WE COULD DO SAY UP TO 5% ADJUSTMENTS FOR THOSE HIGH PERFORMERS.

WHAT THAT AMOUNTED TO IN THIS CURRENT BUDGET IS WE SPENT APPROXIMATELY 200,000. THAT WAS BASED ON THE REQUESTS WE HAD AND THE CAPACITY OF FUNDS.

WHAT 1% WILL EQUAL 711,000.

THAT WOULD GIVE US QUITE A BIT TO WORK WITH FOR HIGH PERFORMERS AND MERIT TO HELP SUPPORT THOSE EFFORTS OF SUPPORTING THOSE HARD WORKING EMPLOYEES. SO THAT IS THE PROPOSAL FOR THE CIVILIZATION CIVILIAN SIDE AND THE THE COMP STUDY PHASE TWO.

THAT MEANS SOME WILL SEE A SIGNIFICANT INCREASE BEYOND THIS.

THEY'LL GET SOME MORE TO GET THEM BACK IN THE RANGE OR WHERE THEY NEED TO BE MORE COMPETITIVE. AND IT'S STILL, IT'S NOT GETTING THEM TO LIKE A MIDPOINT MARKET. IT'S GETTING THEM INTO THE NEW GRADE BAND BASICALLY. SO THAT WOULD TAKE UP THE 3% VALUE BETWEEN THOSE TWO TOP LINE CIVILIAN PAY STUDIES SEPARATE AND THEN YOU GOT YOUR 3 POLICE, 3% POLICE, 3% FIRE FOR A TOTAL OF 05,098,000. SO THAT'S AT 5.1.

EVERYTHING BELOW THAT IS THE EXCESS BASED ON THE 7.2 MILLION THAT WE IDENTIFIED. REALLY TRIED TO SPREAD AROUND BASED ON THE PRIORITIES WE'RE HEARING.

WE'VE GOT OUR WORKDAY SOFTWARE.

WE HAVE TO PAY FOR THE SPLIT BETWEEN THE PRO TEAM TACTICAL WITH A CAVEAT. WE'RE STILL RESEARCHING THAT PROGRAM AND HOW IT RELATES TO WORKERS COMP AND TEXAS STATE LAWS AND WHAT OUR REQUIREMENTS ARE. SO THAT ONE WILL STILL HAVE TO BE VETTED A LITTLE BIT BEFORE WE CAN IMPLEMENT IT IF IT'S APPROVED. WE'VE GOT FEE INCREASES FROM GOLF COURSE.

BASICALLY THEY'RE RAISING 357,000. WE'RE SAYING WE'LL COME BACK IN SEPTEMBER AND THEY'LL PLUG THEM IN WHERE THE LINE ITEMS WOULD GO TO OFFSET THE INCREASE IN REVENUE. COUPLE HUNDRED THOUSAND TOWARDS POLICE AND FIRE OVERTIME TO HELP WITH THAT EMERGENCY MANAGEMENT SPECIALIST ADDITION TO OEM. 2AMW ANIMAL MANAGEMENT OFFICERS AND RECLASS OF TRAINED OFFICERS. THE WAY IT WORKS IS YOU START AS A TRAINEE AND THEN AFTER YOU GET LICENSED HAVE TIME ON THE JOB, YOU'RE BASICALLY AUTOMATICALLY CONVERTED TO AN OFFICER. BUT WHAT WE FUND IT AS IS A TRAINEE. SO WE'D LIKE TO HAVE THEM AS OFFICERS AND WE'LL UNDER FILL TRAINEE AND THEN BUMP THEM UP ONCE THEY HIT IT.

AND I DID NOTE IN THE ROSE HERE IF THERE WAS FEE INCREASES THAT ARE HELPING WITH OUR 7.2, 42,000 OF THOSE FEE INCREASES ARE COMING FROM AMW ADJUSTMENTS. SO THEY'RE HELPING OFFSET THEIR REQUEST. WE'VE GOT A FACILITIES BUILDING MECHANIC AND A COUPLE OF CUSTODIANS. WE TYPICALLY EVERY YEAR HAVE REQUESTS FOR CUSTODIANS AND BUILDING MECHANICS AND WE DON'T GET TO GET THOSE ADDED. AND IT'S GETTING TIGHTER AND TIGHTER, PARTICULARLY WHEN WE'RE HAVING A NEW COMMUNITY DEVELOPMENT OFFICE SPACE. WE'VE GOT NEW CITY HALL. THEY'RE JUST REALLY STRETCHED IN. SO TRYING TO GET A COUPLE MORE IN THERE.

I THINK THE ORIGINAL REQUEST WAS SEVEN OR EIGHT CUSTODIANS.

SO JUST TRYING TO GET A COUPLE

[02:55:01]

WE HAVE A BUILDING AND SAFETY ELECTRICAL INSPECTOR ADDITION FUNDING FOR PARKS EVENTS AT 35,000. THAT'S JUST THOSE QUARTERLY EVENTS HELPING WITH THE 4TH OF JULY. THE OCTOBER EVENTS CONTINUE CONTINUING TO GROW. THOSE PROGRAMS, MOWING CONTRACT, ADDITIONAL ACREAGE, FOUR UTILITY WORKERS FROM PART TIME TO FULL TIME.

WE'VE GOT A VECTOR SUPPLY INCREASE FOR THAT PROGRAM. ONE NEW ENVIRONMENTAL HEALTH TECHNICIAN TO HELP WITH VECTOR CONTROL. THE ORIGINAL REQUEST WAS 2. AN AECC POSITION, AN EMAIL BACK AND FORTH WITH MAX AND HOW I'D KIND OF CAVEAT SOME OF THESE AND PARTICULARLY WHEN WE GET TO THE CIP'S. BASICALLY WHAT WE'RE ASKING IS THESE DEPARTMENTS TO GET THESE FUNDING BETWEEN NOW AND SEPTEMBER. IF THIS IS A ROUTE WE GO, WE'D LIKE A LITTLE FLEXIBILITY OF SAY I PUT IN THE CIP, FOR EXAMPLE, THE ROOK FOR THE POLICE DEPARTMENT.

WELL, MAYBE THEY WANT TO BUY SWAT SUPPLIES VERSUS A ROOK.

SO GIVE US A CHANCE TO GO BACK TO THAT DEPARTMENT AND SAY IS THIS REALLY YOUR PRIORITY? OR IF YOU KNOW YOU HAVE 400 TO WORK WITH, WHAT WOULD YOU SPEND IT ON? BUT WE KNOW THAT'S YOUR FOCUS AREA.

SO AECC TERMINAL AGENCY WOULD PROBABLY BE A JUNIOR SUPERVISOR OR A SUPERVISOR LEVEL INSTEAD BASED ON MAX'S RECOMMENDATION.

AND THEN WE'VE GOT SOFTWARE AND HARDWARE FOR WORK ORDERS FOR THE FACILITIES CREWS AS WELL AS JANITORIAL SUPPLIES FOR THE NEW BUILDINGS. WE'VE TAKEN ON CITY SECRETARY ELECTION SUPPLIES FOR REQUIRED EARLY VOTING HOURS. AND THEN THE LAST ONE ON THERE IS CITY MARSHAL'S OFFICE RADIOS FOR CODE ENFORCEMENT AS A, WHICH IS REALLY A SAFETY RISK RIGHT NOW. ONLY THE PEACE OFFICERS HAVE RADIOS. THE CODE ENFORCEMENT HAVE TO RELY ON THEIR CELL PHONE AND THEY ARE OUT IN THE FIELD DEALING WITH.

SOMETIMES SOME CITIZENS DON'T LIKE TO BE TOLD THAT THEIR PROPERTY HAS A COMPLIANCE ISSUE AND SOMETIMES THEY NEED TO CALL FOR BACKUP AND BE MORE INSTANTANEOUS IN TRYING TO DIAL 911. SO THAT BRINGS US TO 2.1 MILLION WITH THE TOTAL OF BREAKING RIGHT EVEN AT THE 7.2 IN NEW REVENUE TO ALLOCATE.

SO JUST TO BE CLEAR, LIKE THIS IS FOR THE RECURRING EXPENSES, THIS IS A RECURRING SIDE.

YES, SIR.

SO LIKE CITY SECRETARY ELECTION SUPPLIES INCREASE PROBABLY. I MEAN WE'RE JUST GOING TO DO THAT EVERY YEAR NOW.

SO WE, WE PLAN IT IN THE BUDGET. SOMETIMES IT DOESN'T. AND THAT'S PART OF THAT, THAT COVERS OVERTIME FOR OTHER DEPARTMENTS THE YEARS THEY DON'T HAVE TO SPEND IT, FOR EXAMPLE. BUT YES, THEY DO HAVE A LINE ITEM FOR ANNUAL ELECTIONS IN CASE Y'ALL DECIDE TO CALL A VOTER APPROVED TAX RE ELECTION OR IF IT'S THE GENERAL ELECTION, WE HAVE TO HOLD FOR ODD NUMBER OF YEARS.

OKAY, MY BRAIN, SOME OF THIS, SOME OF THIS LOOKS LIKE ONE TIME STUFF, BUT YOU'RE SAYING WE'RE GOING TO GET THIS IN THE BUDGET AND IT'S GOING TO, IT'LL ALL BE.

IT'D BE RECURRING.

YEAH. SO IT'S GROWING PROGRAMS OR IT'S COVERING SUPPLIES.

YES, THESE WILL BE CONSIDERED RECURRING.

OKAY. YES, SIR.

AND THESE WERE THE PRIORITIES BASED ON WHAT YOU GUYS PUT TOGETHER AFTER YOU HEARD.

BASICALLY LISTENING TO ALL THE FEEDBACK AND LOOKING THROUGH ALL THE REQUESTS AND TRYING TO GET AS MUCH AS WE CAN IN THERE. YES, THIS IS THE RECOMMENDATION.

YEAH, I'M ALSO TRYING TO.

AGAIN, IT'S A PUZZLE PIECE AND SO YOU HAVE, YOU HAVE TO TRY.

YOU GOT 7.2 TO WORK WITH. SOME PUZZLE PIECES ARE NOT GOING TO FIT. SO WE HAD TO TRY TO FIGURE OUT WHICH PUZZLE PIECES DO FIT WITHIN THAT 7.2.

SO WE HAD 19.8 MILLION IN REQUESTS. YES, CORRECT.

WE CAN COVER 2.1 AND COVER 2.1.

YES.

BUT WE TOOK CARE OF THE, THE RAISES.

YES, THE RAISES COME RIGHT OFF THE TOP AND THEN IT'S 2.1 TO TRY AND ALLOCATE FOR THE OTHER 19 MILLION IN REQUESTS.

YES.

SO THE AVAILABILITY OF 7, BECAUSE IT'S BEEN A WHILE SINCE WE STARTED ON THIS. THE AVAILABILITY OF THE 7.2 MILLION, THAT IS WITH THE PROPOSED TAX RATE OF GOING TO THE $0.44.

CORRECT.

SO IF WE WENT TO THE NO NEW REVENUE TAX RATE, WE WOULD BE LOOKING AT 7.2 MINUS 700. YES.

SO WE HAVE TO DEDUCT FROM THE 2.1.

AND THEN DID THE 7.2 INCLUDE OUR MILLION DOLLARS IN ADDITIONAL SALES TAX? YEAH, WE WENT FROM 6.2 TO 7.2.

YES. UNLESS I WANT TO GO A LITTLE MORE AGGRESSIVE AND RAISE THAT ANOTHER PERCENT.

JUST SO REALLY, IF NOT FOR THE SALES TAX FIND, WE'D BE AT 6.2, CORRECT? YES, SIR.

OKAY.

YES.

I WOULD JUST SAY KIND OF THE.

WHERE THE, WHERE I AM ON THIS BECAUSE I MEAN, AND I'M GLAD WE GOT THAT, BUT I'M JUST LOOKING ON PROPERTY TAX RELIEF AND IF WE GO TO THE NO NEW TAX RATE, AND I KNOW WE TALKED YESTERDAY ABOUT LOOKING AT ONE TIME EXPENSES OR WHATEVER THAT MAY BE FOR THE CAPITAL PART OF IT, BUT I MEAN, YOU KNOW, I'M GLAD WE GOT MORE SALES TAX, BUT I'D LIKE TO SEE A 1.7 REDUCTION IN OUR PROPERTY TAX REVENUE TO GO TO THE 700,000, GO FROM THE NO NEW AND THEN AN ADDITIONAL MILLION BECAUSE WE FOUND THE SALES TAX. I MEAN, WE DIDN'T EVEN KNOW THAT THAT WAS GOING TO BE THERE. AND SO I'D LIKE TO SEE A POSSIBILITY OF,

[03:00:01]

WHAT, WHAT WOULD THE RATE BE? I THINK WE DISCUSSED IT YESTERDAY IF WE KEPT THE RATE FLAT, LIKE WHERE WE ARE NOW, LIKE NOT THE NO NEW RATE, BUT JUST KEPT IT WHERE WE ARE NOW, WE'RE WHAT, 42 SOMETHING? 43, 0.43077.

OKAY, THAT'S THE RATE.

BUT WHAT DOES THAT, I MEAN, DO WE HAVE THAT CALCULATION LIKE, LIKE WE DIDN'T RUN ONE TO DROP IT BELOW THE NOON. WE WERE. SO WE'D HAVE TO RUN THAT CALCULATION.

OKAY, SO.

BUT WE HAD THREE OPTIONS, RIGHT? I MEAN WE GO TO NO NEW, BASICALLY KEEP IT THE SAME SOMEWHERE IN BETWEEN.

WE KEEP THE SAME, BUT WE DON'T HAVE THAT NUMBER.

WE DON'T LIKE WE KNOW IF WE, IF WE GO THE NO NEW, IT'S $700,000 WHAT IT GENERATES IN THIS.

RIGHT.

IF WE KEPT THE RATE FLAT, WE DIDN'T TAKE AN INCREASE, IT'S GOING TO BE SOMEWHERE BETWEEN 100,000 AND 700,000.

OKAY, THANKS.

YOU'RE WELCOME.

COUNCILMAN SIMPSON, BEFORE I GIVE, I'D LIKE TO TRY TO WEIGH IN ON THAT, BUT IS THERE ANY DESIRE TO LOWER THE TAXES MORE THAN A MILLION? BECAUSE WHAT I HEARD WAS IF WE KEEP A NO NEW REVENUE RATE, WE SAID 1.7 MILLION.

THAT'S RIGHT.

DROP IT EVEN MORE.

YEAH.

SO IF WE KEEP THE NO NEW REVENUE RATE, WE JUST SAY, LOOK, TAXES ARE GOING TO STAY THE EXACT SAME SAME, THEN WE, WE MISS OUT ON WHAT IS BEING COMMUNICATED TO US AT $700,000 INCREASE.

RIGHT.

BUT THEN YOU HAD SAID LIKE, WELL, I'D LIKE TO LOWER THAT RATE ANOTHER, YOU KNOW, WAIT THREE QUARTERS OF A PENNY MAYBE, AND WE'D REALIZE A MILLION DOLLAR LESS REVENUE AND WE'D LOWER THE TAXES FOR THE FIRST TIME. I DON'T KNOW WHEN THE LAST TIME THEY WERE LOWERED, BUT WHENEVER SO IS THERE ANY DESIRE TO DO MORE THAN THE MILLION DOLLARS? WELL, ALL I'M SAYING IS THAT THE. NO NEW TAX RATE. WE GOT TO TIGHTEN OUR BELT. $700,000.

THE OTHER THING IS WE JUST GOT A NEW MILLION DOLLARS. AND I UNDERSTAND THAT WE'RE, THAT WE'RE, YOU KNOW, WANTING TO SPEND IT. I'M JUST LOOKING AT, CAN WE PROVIDE BECAUSE WE'RE.

OUR SALES TAXES PERFORMING BETTER, CAN WE PROVIDE A LITTLE BIT MORE PROPERTY TAX RELIEF? THAT'S, THAT'S KIND OF WHAT I'M. SO MY PROPOSAL IS TO LOOK AT 1.7 MILLION LESS.

OKAY. AND WE HAVE TIME. I MEAN, THIS IS, THAT'S GREAT DISCUSSION. AND THIS IS EXACTLY THE TIME FOR IT.

RIGHT.

WE'VE GOT A MONTH TO FIGURE IT OUT AND BRING IT BACK AND GET IT SIGNED INTO PRACTICE. SO, COUNCIL, IS THERE ANYBODY ELSE THAT HAS A DESIRE TO LOWER THE TAX RATE MORE THAN A MILLION DOLLARS OR WE WOULD. WE JUST LOOK AT THAT AS LIKE, WELL, THAT'D BE A GREAT GOAL.

WHETHER WE DO IT OR NOT.

THAT'S, THAT'S, THAT'S THE MOST WE WOULD CONSIDER. AND YOU MAY BE ON THE OTHER SIDE OF IT.

YOU MAY BE LIKE, WELL, I WANT TO RAISE THE TAX RATE, YOU KNOW, A MILLION DOLLARS OR NOT A MILLION, I GUESS 700. WELL, WE'RE IN A UNIQUE SITUATION BECAUSE WE HAVE SOME, SOME OPTIONS.

AND I THINK IT'S WORTH THE TIME WE HAVE THE FEW WEEKS BEFORE WE DO A FINAL BUDGET JUST TO SEE WHAT THOSE FIGURES ARE.

ALSO REALIZING WE NEED TO OPERATE AS A CITY, AND OUR EMPLOYEES, I MEAN, WE'VE GOT TO GIVE THEM RAISES. AND IF IT'S GOING TO AFFECT THE AMOUNT OF MONEY THAT OUR EMPLOYEES MAKE FOR THEIR TAKE HOME, I THINK THAT'S A CONSIDERATION WE HAVE TO LOOK AT AS WELL AS THE TAX DOLLARS.

BUT I THINK WE SHOULD AT LEAST TAKE A LOOK AT IT AND SEE WHERE THOSE NUMBERS FALL.

AND FOR CLARIFICATION, WE WILL NEED TO SET A TAX RATE FOR PUBLICATION HERE AT THE NEXT COUNCIL MEETING.

YOU CAN ALWAYS COME IN UNDER THAT RATE. AND SO YOU BASICALLY HAVE TO TELL THE CITIZENS THAT WE ARE LOOKING AT A RATE OF 44, 43 OR 42 OR WHATEVER. YOU'RE GOING TO DO THAT. WE HAVE TO PUBLICIZE THAT FOR OUR BUDGET HEARINGS IN SEPTEMBER. YOU CAN'T. SO THEN IN THE HEARINGS, YOU CAN'T GO ABOVE THAT, BUT YOU CAN ALWAYS COME IN BELOW THAT. SO WE DON'T HAVE A FEW WEEKS TO. TO CONSIDER. WE DO NEED TO SET A RATE SOON, BUT YOU ALWAYS CAN COME IN UNDER IT.

YEAH.

SO YOU'RE SETTING YOUR CEILING, AND THEN THAT GIVES YOU TILL SEPTEMBER CEILING, WHEN YOU VOTE.

RIGHT.

SO YOU HAVE TO KNOW BASED ON THAT, YOU'RE. WHAT YOU'RE BASICALLY TELLING US IS YOU SET THE CEILING AT THE PROPOSED RATE.

THREE AND A HALF PERCENT.

CORRECT.

YEAH.

THAT'S GIVES COUNCIL THE MOST FLEXIBILITY TO GIVE YOU MORE TIME TO FIGURE OUT WHAT YOU WANT TO DO. BUT FROM A PERSONNEL SIDE, I THINK HEARING COUNCIL MEMBER SIMPSON, WE'D BE ABLE TO COVER THE 5 MILLION OF PERSONNEL RAISES. IT'S EVERYTHING ON THE 2 MILLION THAT WOULD GET CUT. IT WOULD BE WHAT WE'D HAVE TO WORK THROUGH TO SEE HOW YOU PRIORITIZE THAT DOWN TO A FEW REQUESTS BEING

[03:05:02]

YEAH.

AND I GUESS, I MEAN, I LOOK AT THE ASKS OF BEING 19.8 MILLION AND I HEAR COUNCILMAN SIMPSON SAYING, WE WANT TO TIGHTEN OUR BELTS, YOU KNOW, BECAUSE EVERYBODY ELSE IS HAVING TO. SO WE DID. WE DROPPED 17.7 MILLION. RIGHT.

TO 2.1. RIGHT.

WELL, THAT'S ONE WAY TO LOOK AT IT. YES.

I MEAN, I GUESS, I DON'T. I MEAN, IT'S. IT'S DIFFICULT TO WEIGH, YOU KNOW, WHEN YOU, WHEN YOU SEE THESE. THIS ISN'T.

I MEAN, I DON'T SEE REALLY ANY PORK IN OUR BUDGET. I MEAN, I WISH WE HAD SOME, YOU KNOW, I WISH WE COULD DO SOME DIFFERENT THINGS, BUT I DON'T SEE A LOT OF WORK WHEN IT COMES DOWN TO, YOU KNOW, TIGHTEN OUR BELT. SO, I MEAN, I WOULD SAY THAT THESE ARE LEGITIMATE NEEDS THAT WERE PRESENTED, BUT WE'VE ALREADY CHOPPED IT BY 17 MILLION. I DON'T KNOW. I MEAN, I JUST LOOK AT. I MEAN, IT'S A TOUGH DECISION AND I AGREE WITH TIM AND NOBODY REALLY WANTS TO TALK ABOUT IT, I DON'T GUESS.

BUT I MEAN, I MEAN, IT SOUNDS GREAT TO LOWER TAXES, I MEAN, BECAUSE, YOU KNOW, WE'RE REPRESENTATIVES OF THE CITIZENS FOR SURE. AND I GET, I THINK YOU TALK TO, GOSH, THE VAST, VAST MAJORITY.

OBVIOUSLY IT WOULD BE LOWER RATES. I MEAN, I'M ONE OF THEM. I'D LOVE TO HAVE A LOWER TAX RATE.

BUT THEN THERE'S THE PART OF BEING ELECTED UP HERE AND WE HAVE TO MAKE HARD DECISIONS, AND SOMETIMES THAT'S. I MEAN, MOST PEOPLE DO NOT PAY ATTENTION TO WHAT WE'RE DOING HERE TODAY. I DON'T KNOW HOW MANY VIEWERS WE HAVE, BUT, I MEAN, IT'S GOING TO BE THE SAME PEOPLE. VERY FEW PEOPLE EVEN KNOW THIS IS GOING ON OR THESE ASKS OR WHAT ARE NEEDED. I DO KNOW THAT EVERYBODY ENJOYS WAKING UP, DRIVING TO WORK ON NICE STREETS, TAKING A SHOWER, FLUSHING THE TOILET, DOING THOSE THINGS, YOU KNOW, JUST THE DAILY THINGS. AND THEN ON TOP OF THAT, HAVING PARKS THAT WERE TAKEN CARE OF AND GOING. BEING ABLE TO GO GOLF AND DOING THE THINGS. QUALITY OF LIFE. BUT, YOU KNOW, THAT TAKES. THAT TAKES MONEY. AND OUR CITY'S GROWING, WHICH WE'RE BLESSED. I MEAN, THAT'S AMAZING. OUR CITY'S GROWING. SO NOT ONLY. NOT ONLY HAVE, LIKE, COUNCILMAN SIMPSON BROUGHT UP, I MEAN, THE EXPENSES OF EVERYTHING HAVE GONE UP.

WELL, THEY'VE GONE UP FOR ALL OF OUR EMPLOYEES, THEY'VE GONE UP FOR THE CITY, FOR EVERY SINGLE BUSINESS THAT WE DO, EVERY OPERATION WE DO. SO THOSE HAVE GONE UP. BUT WE'RE ALSO PROVIDING SERVICES TO MORE PEOPLE, YOU KNOW, SO IT'S JUST A TOUGH. IT'S A.

IT'S A TOUGH SITUATION SITTING UP HERE AS WE'RE ELECTED TO REPRESENT THE CITIZENS, BUT ALSO DO WHAT'S BEST FOR.

FOR THEM, WHICH MEANS HELP DIRECT YOU GUYS TO RUN THE CITY AND TO PROVIDE GREAT SERVICE, CUSTOMER SERVICE, AND DO IT WELL, ALL THE WHILE MAKING TOUGH DECISIONS, YOU KNOW. SO I HEAR COUNCILMAN SIMPSON IN HIS DESIRE TO LOWER RATES.

AND THAT'S GREAT IN THEORY. I MEAN, IT'S GREAT IN REALITY. I MEAN, IF WE CAN. IF WE CAN DO IT.

AND AGAIN, I'M JUST TALKING UP HERE, YOU KNOW, TO HAVE THIS DISCUSSION, BUT I THINK IT'S ALSO DIFFICULT TO DO, AND IT MAY NOT BE POPULAR, BUT SOMETIMES I THINK WE HAVE TO TAKE A HARD LOOK AT, WELL, WHAT IS NEEDED FOR THE CITY.

WHAT DO ALL YOU GUYS NEED? AND WE'RE UP HERE TELLING YOU YOU'RE NOT GETTING IT. I'M SORRY. IT'S GONNA BE A LIGHT CHRISTMAS, YOU KNOW, I MEAN, IT'S GONNA BE A. WE CAN'T.

CAN'T GET YOU EVERYTHING THAT YOU NEED. WE'RE GONNA GET SOME.

WHICH Y'ALL.

Y'ALL PRIORITIZE, WHICH IS GREAT, BUT WE'RE NO. NOWHERE NEAR WHAT WE NEED. THEN I'LL.

AND THEN NOW WE'RE KICKING AROUND THE DISCUSSION OR THE IDEA OF, LIKE, I WANT TO LOWER RATES, WHICH IS.

AGAIN, I'M WITH YOU. I MEAN, I BE GREAT. AND DO WE NEED TO GET OUR DEPENDENTS OFF PROPERTY TAX? YEAH, I THINK WE DO. BUT WHILE WE HAVE IT, I ALSO FEEL LIKE MAYBE WE'RE KICKING THE CAN DOWN THE ROAD LIKE A FEW COUNCILS DID BEFORE, OF, LIKE, WE'RE PUTTING OURSELVES IN A TOUGH SPOT OF NOT TAKING CARE OF SOME THINGS. YOU KNOW, AGAIN, NOT PORK, BUT TAKING CARE OF SOME IMPORTANT THINGS. SO I THINK WE HAVE TO BE CAREFUL WITH THAT, TOO. SO IN SAYING THAT, I MEAN, I JUST THINK OPEN DISCUSSION OF WHAT DO WE WANT TO DO POLITICALLY. YEAH, IT SOUNDS GREAT TO SAY, HEY, I'M GONNA LOWER TAXES. I MEAN, THAT IS A GREAT THING. BUT IN REALITY, I MEAN, IT'S ALMOST LIKE A PARENT.

SOMETIMES AS A PARENT, YOU HAVE TO MAKE HARD DECISIONS THAT YOUR KIDS DON'T LIKE, BUT LATER THEY'RE LIKE, MAN, I'M GLAD YOU DID THAT. YOU KNOW? SO, I MEAN, I GUESS I LOOK AT THAT AND I THINK WE NEED TO BE CAREFUL OF WHAT WE'RE DOING. IF WE'RE DIGGING OURSELVES IN A HOLE FOR NEXT YEAR OR THE NEXT COUNCIL THAT COMES, ARE WE HAMSTRINGING THEM? BECAUSE WE'RE NOT DOING ANYTHING. NOW, AGAIN, NO MATTER WHAT WE DO WITH TAXES, WHETHER WE LEAVE THEM THE SAME AND DON'T TOUCH THEM, WHICH I THINK IS A GOOD IDEA, WE'RE NOT RAISING TAXES. WE CAN LOWER TAXES OR WE CAN TAKE OUR THREE AND A HALF. I MEAN, I GUESS I'M SAYING ALL THAT TO SAY IT'S A TOUGH DECISION, AND I THINK IT'S SOMETHING THAT WE'VE ALL GOT AWAY AND SAY, WHERE ARE WE AS A COUNCIL? SO.

WELL, ONE THING I WOULD SAY IS, YOU KNOW, IN MY TIME, AND IF THIS BUDGET WERE TO BE APPROVED AS IT IS, OR EVEN. EVEN WITH THIS, I MEAN, NOBODY CAN SAY

[03:10:01]

AND I THINK, YES, EXACTLY.

NEXT YEAR WE WOULD ALSO HAVE AN OPPORTUNITY BECAUSE WE HAVE DEBT ROLLING OFF. SO. AND AS I SEE OTHER TAXING ENTITIES TALKING ABOUT IT, I DON'T. I MEAN, MAN, WHAT PEOPLE'S TAX BILL IS GONNA. YOU KNOW, I DON'T SEE ANYBODY IN OTHER TAXING ENTITIES EVEN HAVING THIS DISCUSSION SO FAR, FROM WHAT I'VE SEEN. SO EVERYBODY ELSE MAY TAKE. I JUST THINK IT'S WORTH THE DISCUSSION TO BE COGNIZANT OF, YOU KNOW, THAT PART OF IT. AND CAN WE LOOK AT THIS AS A POSSIBILITY AT THE END? YOU KNOW, I WOULD SAY, YOU KNOW, AT A MINIMUM, THE NO NEW TAX REVENUE RATE, IF THAT'S SOMETHING THAT WE CAN LIVE WITH, TO COMMIT TO THAT, AND THEN THAT DOES GIVE US SOME MORE TIME TO HAVE DISCUSSION ON ANYTHING ABOVE AND BEYOND WHAT THAT WOULD LOOK LIKE.

YEAH.

AND I DON'T DISAGREE. I THROW ALL THAT OUT THERE JUST TO SAY THESE ARE ALL THINGS THAT WE NEED TO LOOK AT. AND I DON'T KNOW THIS, BUT I MEAN, YOU KNOW, ALL OF US, THE AMOUNT OF TIME THAT WE SPEND ON THIS, WHEN YOU TWO GUYS ARE, YOU KNOW, THE SECOND TIME AROUND. US NUMBER FOUR, YOU, SEVEN, SIX, EIGHT, TEN. I CAN'T IMAGINE ANY MORE TIME THAN THIS GUY SPENT ON THE BUDGET. AND I CAN SAY THAT WE'VE BEEN, I THINK, PRETTY GOOD. I MEAN, AND LES, TO YOUR POINT, YOU KNOW, WE'VE. WE'VE RAISED THE RATES, BUT WE'VE GOTTEN PRETTY CREATIVE IN USING THAT INS SIDE TO TAKE CARE OF SOME CANS THAT WERE KICKED DOWN THE ROAD. AND I THINK WE DID A PRETTY GOOD JOB. YES, WE DID RAISE RATES, BUT AGAIN, THE STREETS ARE IN, I THINK, BETTER SHAPE THAN THEY'VE BEEN.

YOU KNOW, THE ORGANIZATION'S FUNCTIONING.

BUT AGAIN, I JUST.

IT'S. AND THAT'S WHY I WANTED.

I WANT THAT DISCUSSION TO HAPPEN, TOO.

ON NO MATTER WHAT WE DO WITH THE RATE, WHAT DOES THAT MEAN TO THE HOUSEHOLD? RIGHT? IS IT $5 A MONTH? IS IT $8 A MONTH? LIKE, WHAT IS THAT? AND TO LESSON POINT YESTERDAY, THAT MEANS SOMETIMES THAT'S A HUGE DEAL. YOU KNOW, I MEAN, YOU KNOW, THE OTHER THING, I THINK IT JUST IS JUST DOING THIS BECAUSE AGAIN, I THINK THERE'S A SILENT MAJORITY OUT THERE THAT WE NEVER HEAR FROM. THERE'S SOME PEOPLE THAT SAY, HEY, OUR TAXES ARE TOO, TOO LOW.

THEY NEED TO BE MORE. BUT, YOU KNOW, ONE THING I THINK JUST LOOKING AT THIS, HOPEFULLY IF WE SAY, YOU KNOW, WE'RE LOOKING AT THIS, AND IF ONE DAY WE EVER HAVE TO GO TO THE VOTERS, THEY CAN'T SAY, YOU KNOW WHAT, THAT COUNCIL, THEY JUST DIDN'T LISTEN TO US. THEY JUST RAISED OUR TAXES EVERY YEAR. YOU KNOW, AT LEAST IF WE HAVE TO GO TO THE VOTERS AT SOME POINT FOR SOMETHING THAT WE NEED, HOPEFULLY THAT WE'RE HAVING THIS DISCUSSION AND MAYBE WE'RE ABLE TO TAKE ACTION ON, IT WOULD SAY, YOU KNOW WHAT, THEY TIGHTENED THEIR OWN BELT BEFORE THEY CAME AND ASKED ME FOR MORE MONEY. SO I THINK THAT'S PART OF THIS DISCUSSION. NOW AT THE END, MAYBE EVERYBODY ELSE WILL SAY, NO, WE'RE NOT GIVING YOU ANY MORE.

BUT I DO THINK JUST HAVING THIS DISCUSSION TO SAY, HOW MUCH CAN WE LOOK AT? YOU KNOW, EVEN IF IT'S FIVE OR EIGHT FOR THAT SILENT MAJORITY THAT WE NEVER HEAR FROM, THAT COULD BE MEANINGFUL TO THEM OR FOR SOME PEOPLE, DEPENDING ON THEIR EVALUATION, MAYBE THE INCREASE WOULDN'T BE AS MUCH AS IT WOULD BE OTHERWISE.

WHAT PERCENTAGE OF THE COMES TO THE CITY? WHAT IS IT, ABOUT 20, ABOUT 22% OF THE TAX, DEPENDING ON WHICH COUNTY YOU'RE IN.

YES.

YEAH, 22% COMES TO US. SO, YES, 78% IS GOING JUNIOR COLLEGE, WATER DISTRICT, WHEREVER.

YEAH, I THINK THAT'S SO IMPORTANT, YOU KNOW, THAT WE'RE NOT GETTING THE FULL AMOUNT.

WE'RE TRYING TO OPERATE AND DO ALL THE THINGS THAT WE'RE DOING, YOU KNOW, ON A RESTRICTED AMOUNT. I JUST THINK PEOPLE NEED TO HEAR THAT.

I ALWAYS LIKE TO. I MEAN, I THINK EVERYONE ALWAYS. I THINK CITIZENS, THEY TEND TO FORGET ABOUT WHAT ALL THEY GET FROM THEIR TAX. I MEAN, I MEAN, NOT EVERY CITIZEN USES THE SCHOOLS. I MEAN, AT ONE POINT, MAYBE THEY DID OR NOT, I DON'T KNOW. SO SOME PEOPLE USE IT AS A COLLEGE, A LOT OF PEOPLE USE IT THE WATER DISTRICT, BUT EVERYONE USES THE CITY SERVICE. NOT EVERYONE EVEN USES THE COUNTY. WHAT'S ONE OF THE ISSUES THAT I HAVE IS THAT WE ALL PAY COUNTY TAXES, BUT HOW MUCH THAT COMES BACK TO THE CITY. AND SO.

BUT EVERYONE, EVEN PEOPLE IN MOUNT SINAI COMMUNITY USE THE CITY SERVICES. EVERYONE DOES.

AND SO. AND I ALSO OFFER THIS TOO. WHILE THERE'S LEGISLATIVE NOISE ABOUT CUTTING THIS AND CUTTING THAT AT THIS CURRENT TIME, THE LEGISLATION, WHICH IS A VOICE OF THE PEOPLE IN THE TEXAS, HAVE DECIDED THAT 3.5% IS A REASONABLE AMOUNT TO GROW.

THAT'S WHY THEY GIVE IT TO YOU TO DECIDE THAT THEY DON'T WANT ANY MORE, BUT THEY RECOGNIZE THAT COSTS ARE GOING UP, THERE'S ISSUES, BUSINESS GOES UP AND EVERYTHING. SO LEGISLATION HAS SPOKEN, WHICH SPEAKS FOR THE PEOPLE AND TEXAS THAT, THAT WE RECOGNIZE THERE IS A NEED TO KEEP UP WITH THINGS.

NOW, IN MY OPINION, 3.5 ISN'T ENOUGH. SO AS WE SEE $19 MILLION OF NEEDS, I CAN'T EVEN DO THAT RIGHT NOW.

SO. BUT LEGISLATION HAS SAID THIS IS A REASONABLE AMOUNT TO GROW. NOW, OBVIOUSLY YOU DON'T HAVE TO TAKE IT, BUT WHEN THERE IS NEED,

[03:15:01]

THEY WANT FASTER RESPONSE TIMES, THEY WANT SAFER OFFICERS, THEY WANT MORE MOWED AND WATERED GRASS AND IN THE PARKS, THEY WANT THESE THINGS. AND SO THIS IS THE CITIZEN, THE STAFF'S RESPONSE TO THAT.

HEY, WE'VE HEARD ALL THE COMPLAINTS, THE CONCERNS, THE POSITIVE NEGATIVES. THIS IS WHAT WE'RE HEARING, WE NEED.

AND SO 3.5% DOESN'T EVEN GET THAT.

SO I WOULD JUST SAY FROM THIS SPOT, IT'S ALL VERY, VERY LOGICAL, ALL THE DISCUSSION, IT'S ALL VERY, VERY WISE AND IT'S NEEDED FOR CERTAIN FOLKS. BUT THE GREATER NEED IS TO CONTINUE TO MOVE THIS CITY FORWARD. I WOULD SUPPORT MOVING AS QUICK AS WE CAN TO GET THESE THINGS FIXED ACROSS THE BOARD. THE WORK IS NOT DONE THE WORK IS NOT DONE IN THIS CITY. IF THE WORK WAS DONE, WE HAD THE WASTEWATER TREATMENT PLANTS, IF WE HAD EVERYTHING IN ALL OF OUR AFFAIRS IN ORDER, THEN WE WOULD LOOK AT LOWERING TAXES. I THINK IT'S A GREAT IDEA, LES, BUT TO ME, COST IS ONLY GOING TO CONTINUE TO INCREASE.

I THINK WE'VE HEARD THAT IF WE HAD DONE THE WASTEWATER TREATMENT PLANT HOW MANY YEARS AGO, JUST 15 YEARS AGO, IT WOULD HAVE BEEN $300 MILLION AND NOW WE'RE UP TO A BILLION.

THE TIME IS NOT NOW TO ALLOW THESE THINGS TO BE PUNTED. WE NEED TO GET THE WORK DONE WHILE WE CAN, ESPECIALLY IN A GROWTH PHASE. SO I WOULD NOT SUPPORT ANY TAX RELIEF.

WELL, I WOULD SAY $700,000 IS NOT GOING TO DERAIL THE TRAIN. AND TO BE HONEST WITH YOU, AGAIN, WHEN YOU LOOK AT, AND I'M JUST SAYING FROM WHAT I'VE DONE OVER THE LAST FOUR YEARS WITH THIS, IF THE CURRENT BUDGET IS IMPROVED AND IT'S NOT BEEN ON THE M AND O SIDE, IT'S BEEN ON THE INS SIDE, AND CORRECT ME IF I'M WRONG, WE'VE INCREASED OUR PROPERTY TAXES 27% WHEN YOU LOOK AT THE AMOUNT OF INCOME THAT WE'RE GETTING ON THE PROPERTY TAXES BEFORE THE YEAR. SO I WOULD NOT GO BACK AND CHANGE ANY OF THAT.

I THINK IT WAS GOOD INVESTMENT.

I THINK TO YOUR CREDIT, TO THE PART OF IT, IT SAID THE INS SIDE AND WE'VE ISSUED THAT DEBT FOR A LOT OF THINGS. I'M JUST SAYING CAN WE GIVE A LITTLE RELIEF TO THE PROPERTY TAX OWNERS RIGHT NOW? AND I DON'T THINK GIVING A LITTLE RELIEF IS GOING TO DERAIL ANYTHING MAJOR ON THE CITY IF WE'RE LOOKING AT.

AGAIN, I JUST THINK AS I HEAR TAX DISCUSSIONS, YOU KNOW, IT'S NOT THAT OFTEN THAT I.

THAT AND I'M GLAD WE'RE HAVING THIS DISCUSSION THAT WE'RE OPEN TO IT TO BE ABLE TO DO THAT.

SO, YOU KNOW, I'D FIND IT HARD TO SUPPORT SOMETHING THAT'S NOT GIVING A LITTLE BIT OF RELIEF TO THE TAXPAYERS BECAUSE WE PRESSED ON THEM PRETTY HARD.

FOR NOW, THIS WILL BE THE FOURTH BUDGET TO BE ABLE TO DO THAT. AND YOU KNOW, IF WE GET OFF TRACK FOR SOME REASON OR WE LOOK AT NECK BUDGET WHEN THE NEW COUNCIL'S HERE, THERE ARE WAYS TO MAKE THAT UP. WE CAN GO BACK AND, YOU KNOW, WE CAN CLAIM OUR 3% OR 3 AND A HALF PERCENT NEXT YEAR. AS I, AS I UNDERSTAND IT, WE'VE GOT SOMETHING THAT'S GOING OFF THE INS SIDE DEBT.

SO I'M JUST SAYING LET'S, LET'S JUST KEEP IN MIND OUR TAXPAYERS ARE HAVING TO FUND THIS AND THE PRESSURE AND HOW THEY'VE HELPED US NOW WILL BE THE FOURTH YEAR OF BEING ABLE TO DO THE THINGS THAT YOU'RE TALKING ABOUT.

JUST VERY QUICKLY, CAN I HAVE SOME CLARIFICATION ON THE 700,000 AND WHO IS PAYING? WHO WOULD SEE THE RELIEF IN THE 700,000? BECAUSE QUICK MATH ON 200.

200,000 INDIVIDUALS AT 7.

THAT'S WHAT I MEAN.

IT'S, IT'S VERY, VERY SMALL.

I MEAN, IS IT REALLY, TRULY GOING TO GIVE INDIVIDUALS RELIEF? IT'S CASE BY CASE. SOME WILL SEE MAYBE SOME SAVINGS, SOME WON'T.

YOUR BIG BUSINESSES, ONES WHO HAVE LOTS OF PROPERTY VALUE, THEY'LL SEE THE GREATEST, THE SMALLEST, SMALLEST HOMES WILL SEE THE SMALLEST.

AND SO HOW MUCH WILL WE SEE OUT OF 700? I MEAN, WHAT WILL I SEE AS A CITIZEN? AVERAGE $5.

TOTAL $3.

WELL, IT DEPENDS ON WHAT THE VALUE OF YOUR HOUSE IS. BUT ALL I'M SAYING IS YOU'RE NOT GOING TO BE PAYING AS MUCH AS YOU WOULD OTHERWISE IF WE'RE RAISING YOUR TAXES.

SO I'M GOING TO SAVE THREE, THREE DOLLARS FOR THE YEAR.

I MEAN THAT'S WHAT I'M ASKING.

700,000 OUT OF 204,000 INDIVIDUALS IN THE CITY.

WHAT, WHAT IS MY TAX RELIEF GOING TO BE? WELL, MAYBE IF YOU DIVIDE IT BY WHAT 78,000 UTILITY. THAT'S PROBABLY YOUR CUSTOMER BASE.

$10 ONE TIME. $10. NOT $10 A MONTH. IT'S $10. SO THE IMPACT ON TAXES WE SHOW FOR THE PROPOSED TAX RATE AT 0.44728 IS $58.99 FOR A RESIDENT IN RANDALL COUNTY.

[03:20:02]

$4.95 FOR RANDALL COUNTY AND FOR PORTER COUNTY.

PER MONTH OR ANNUAL? ANNUAL $4.

BUT THAT'S, THAT'S ON THE MEDIUM HOUSEHOLD VALUE.