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MORNING. WELCOME TO A TUESDAY. GOOD LONG WORK DAY HERE.
[1.1. 11:00 AM - City Council convenes in City Council Chamber. ]
THANK YOU TO STAFF AND COUNCIL FOR BEING HERE.[1.2. City Council Budget Workshop ]
YES. THANK YOU. MAYOR. COUNCIL. YES. WE APPRECIATE YOU ALL MEETING TODAY FOR OUR NEXT ROUND OF WORKSHOP.WE DO HAVE COUNCILOR PRESCOTT JOINING US FROM ACROSS THE WORLD IN TURKEY.
AND SO SO HE'LL BE PARTICIPATING THAT WAY. SO WE'VE GOT A PRESENTATION FOR YOU TODAY AND SOMEONE TURN IT OVER TO ANDREW AND HE'S GOT A SLIDESHOW HE'S GOING TO WALK YOU ALL THROUGH. YES, SIR. HE'S RUNNING THE SLIDESHOW.
WE MAY BE HAVING A SLIDESHOW. HOLD ON JUST A SECOND.
I DON'T KNOW WHERE. WE LOST. WE LOST OUR SLIDE [INAUDIBLE] STAND BY.
ARPA FUNDS. YEAH. SO WE CAN START. WE'RE GOING TO WORK ON GETTING THE SLIDES UP ON THE SCREEN, BUT I'LL GO AHEAD AND START SINCE YOU HAVE IT ON PAPER IN FRONT OF YOU.
FIRST I JUST WANTED TO COVER THE THE KEY CALENDAR DATES COMING UP.
YOU COULD DO A RATE LOWER THAN THAT. SO ON SEPTEMBER 22ND, WE'LL HAVE FIRST READING OF THE BUDGET AND TAX ORDINANCES, FOLLOWED BY SECOND READING AND PUBLIC HEARING ON SEPTEMBER 29TH.
NEXT SLIDE IS IMPACTS INTO THE TAX CALCULATIONS.
SO ON THIS NEXT SLIDE I'M GOING TO SHOW YOU WHAT WE'RE FINDING IS A CONTINUED SLOWDOWN IN NEW IMPROVEMENTS AND GROWTH, WHICH ARE LEADING TO ESSENTIALLY A FLAT TAXABLE VALUE COMPARED TO PRIOR YEARS.
WE'VE ALSO SEEN A CONTINUED INCREASE IN EXEMPTIONS.
THOSE TAX CEILINGS 65 AND UP REDUCING THE PREVIOUS AVAILABLE TAX BASE ALONG WITH CONTINUED GROWTH IN OUR TIF AND TIRZ ONE THROUGH THREE BOUNDARIES. AND WE DO ALSO SEE A MORE PRONOUNCED IMPACT FROM SALES TAX DEDICATED TO REDUCING THE PROPERTY TAX RATE, WHICH LIMITS HOW MUCH WE CAN GENERATE THROUGH THE PROPERTY TAX SIDE OF THE CALCULATION.
SO THESE FACTOR IN EVERY YEAR. WHAT'S DIFFERENT THIS YEAR IS THE LACK OF SIGNIFICANT GROWTH IN TAXABLE VALUES, WHICH IS REALLY KIND OF OVERSHADOWED THE ADJUSTMENTS ON THE OTHER CATEGORIES.
SO ON SLIDE THREE YOU GET A SNAPSHOT OF PROPERTY TAX ANALYSIS FROM 2021 2022 THROUGH THE PROPOSED 26-27 TAX YEAR. WHAT YOU CAN SEE GOING BACK TO THE LAST FEW YEARS, IN 23, FOR EXAMPLE, WE HAD 1.6 BILLION IN TAXABLE VALUE GROWTH.
AND THEN IT STARTED TO DECLINE THE NEXT COUPLE OF YEARS SLIGHTLY TO 1.3 BILLION IN GROWTH.
1.2 BILLION IN GROWTH. AND THEN OUR CURRENT YEAR ONLY 417 MILLION IN TAXABLE VALUE GROWTH.
AND THEN THE THE DIFFERENCE IS THAT YOU CAN SEE BELOW, THERE ARE JUST THE CONTINUED TIF INCREMENT.
SO THERE'S 22 MILLION THAT WERE NEW GROWTH AND APPRECIATED VALUES IN THE TIER ZONES.
AND THEN A NEW 205 MILLION TAX CEILING FOR THOSE THAT ARE 65 AND UP.
SO BASICALLY GOING ON THE LAST 36 YEARS, THERE'S BEEN A BUILT IN ADJUSTMENT TO OUR PROPERTY TAX RATE BASED ON THE CITIZENS OF AMARILLO BACK IN OCTOBER 1990 ADOPTED A HALF CENT SALES TAX RATE.
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SO WE'VE GOT 2021 2022 THROUGH THE PROPOSED BUDGET.IT'S GONE BASICALLY FROM $0.17, FLUCTUATED DOWN TO $0.16, 15.4 AND 15.7.
BUT WHAT WE'RE SEEING IS CLIMBING BACK UP TO 17.1 CENTS.
SO WHAT I SHOW YOU BELOW THERE IS THE ADOPTED AND VATRE TAX RATE COMPARISONS.
SO FOR 2627, IF WE WERE GOING WITH THE VATRE TAX RATE, THE ACCOMPANYING TAX RATE WOULD ACTUALLY BE 61.9 CENTS FOR YOUR CITY TAXES. SO THE PROPOSED WOULD ACTUALLY BE THANKS TO THE BUILT IN PROPERTY TAX RELIEF.
IT'S A REDUCTION IN 27% ON YOUR TAX RATE. NEXT UP IS A 2025 TAX BILL. JUST TO SHOW YOU IN PRACTICE WHAT THAT MEANS.
I PULLED AN EXAMPLE OF ONE THAT STILL SHOWED THE BASE TAXES OWED.
SO THIS ONE'S ACTUALLY A DELINQUENT PROPERTY TAX PAYER.
BUT YOU CAN SEE THIS IS WHAT'S SHOWN ON THE TAX BILL.
WITH THE FIRST RED ARROW, YOU SEE A TAXES OWED TO THE CITY OF $1,224.
AND THEN DOWN BELOW THERE'S AN ASTERISK. WHETHER YOU LIVE IN POTTER COUNTY OR REDLAND COUNTY, THERE'S A REFERENCE TO ADDITIONAL CITY SALES TAX, REDUCED YOUR CITY AD VALOREM TAX BY $447.
SO THIS PROPERTY TAX OWNER, DUE TO THE THE SALES TAX RELIEF HAD 26.75% LESS IN CITY TAXES DO SO INSTEAD OF PAYING $672 2025, THEY ONLY OWED $1,224. SO PROJECTING OUT IF COUNCIL WERE TO APPROVE THE VATRE 44.7 CENTS TAX RATE, THEY'D PAY AN ADDITIONAL $47.61 A YEAR, OR 3.89% INCREASE, OR $3.97 PER MONTH. AND THIS IS BASED ON A $284,000 TAXABLE VALUE.
SO AGAIN, JUST REFERENCING A SAVINGS OF 27.72% BASED ON THE THE NEW REDUCTION IN PROPERTY TAX RELIEF DUE TO THE SALES TAX COMPARED TO 26.75 IN THE PREVIOUS YEAR.
NEXT SLIDE IS JUST TO COMPARE WHERE WE STAND TODAY ON TAX RATES TO OTHER LOCAL ENTITIES.
SO WE'VE GOT AN AMARILLO POTTER TAX RATE EXAMPLE IN AMARILLO.
RANDALL TAX RATE EXAMPLE SINCE IT DEPENDS ON WHICH COUNTY YOU LIVE IN AND WHAT SCHOOL DISTRICT.
SO THESE ARE JUST A COUPLE OF SCENARIOS, BUT THEY BASICALLY GO FROM LEFT TO RIGHT.
AND THEN YOU GO DOWN TO RANDALL COUNTY WITH OUR 43 CENT TAX RATE, 21%, 21.7% OF THAT TAX BILL.
THEN AS YOU MOVE TO THE RIGHT, THE FIRST ONE UP IS THE VATRE AT 0.44744.
IT WOULD BRING OUR TAX BILL STAYING ABOUT THE SAME AS PRO RATA SHARE OF 20.5%.
AND THEN IN RANDALL COUNTY IT WOULD ACTUALLY INCREASE TO 22.2%.
POTTER COUNTY IS PROPOSING TO INCREASE THEIR TAX RATE.
AMARILLO COLLEGE IS INCREASING THEIR TAX RATE.
AND THEN ON THE RANDALL COUNTY SIDE, RANDALL COUNTY IS STAYING BASICALLY FLAT, AGAIN AMARILLO COLLEGE IS INCREASING CANYON ISD SLIGHTLY DECREASING IN THE HIGH PLAINS GROUNDWATER DISTRICT IS BASICALLY STAYING FLAT.
BUT WITH THE VATRE PROPOSED BY THE CITY OF AMARILLO 44744 THAT WOULD BE IN POTTER COUNTY.
THE RESIDENTS WOULD SEE A 6.3 CENT INCREASE, AND IN RANDALL COUNTY, A 3.7 CENTS INCREASE.
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AND THEN IN RANDALL COUNTY, 1.1 CENT INCREASE.BUT BASICALLY WHICHEVER OF THESE CHOICES AND YOU COULD ALWAYS PICK SOMEWHERE IN BETWEEN ANY PROPERTY TAX OWNER UNLESS THEIR VALUES DECREASED IS GOING TO SEE A PROPERTY TAX INCREASE. ON THE NEXT SLIDE IS OUR PROPERTY TAX CALCULATIONS FOR BOTH THE VATRE AND THE NO NEW REVENUE. THIS IS JUST TO SHOW YOU HOW THE CALCULATION WORKS.
YOU'VE GOT YOUR NET TAXABLE VALUE. YOUR TIF CAPTURED VALUES.
THOSE ARE YOUR TAX INCREMENT REINVESTMENT ZONE. SO YOU BACK OUT THOSE DEDICATED FUNDS AND THEN YOU BACK OUT YOUR TAX FREEZES, WHICH GIVES YOU A TAXABLE BASE OF A LITTLE OVER 16.6 BILLION.
AND THEN YOU ALSO HAVE A CALCULATION THAT BRINGS BACK IN THE FROZEN TAXES FROM OUR PRAD CERTIFIED VALUES, WHICH ARE NOT INCLUDED IN THE TRUTH AND TAXATION CALCULATION.
SO WE BRING THAT BACK IN, ADJUST FOR YOUR COLLECTION RATE.
AND UNDER VATRE, THAT IS BRINGING IN 83.4 MILLION.
AND THEN AT THE NO NEW REVENUE RATE, IT BRINGS IN 79.2 COLLECTIONS.
AND THEN DOWN BELOW IS YOUR SPLIT BETWEEN MAINTENANCE AND OPERATIONS AND YOUR I&S RATES, SO UNDER THE VATRE CALCULATION, YOU'VE GOT ABOUT 77.32% GOING TO YOUR MAINTENANCE AND OPERATIONS.
AND THEN UNDER THE NO NEW REVENUE RATE, THAT DROPS DOWN TO ABOUT 75.97.
SO IT SHOWS A LARGER SHARE GOING TOWARDS YOUR YOUR I&S SIDE OF THE TAX RATE.
AND THEN YOU TAKE THAT DOWN AND YOU HAVE TO BACK OUT YOUR YOUR TIRZ COLLECTIONS.
AND THEN ON THE NO NEW REVENUE RATE, IT DROPS DOWN TO ABOUT 57.1 COMPARED TO THE 25-26 BUDGET OF 60, 60 MILLION. NEXT SLIDE IS A SLIDE OF DIFFERENT SCENARIOS.
I EMAILED OUT ABOUT 19 DIFFERENT TAX RATE SCENARIOS FOR YOU.
THESE ARE JUST A HANDFUL THAT SHOW YOU THE KEY IMPACTS AS YOU GO DOWN IN RATE.
AND THEN AS YOU GO DOWN IN THE GREEN, THAT STARTS TO DIP DOWN INTO THE NON PAY RELATED SUPPLEMENTALS, WHICH IS NEW EMPLOYEES OR NEW SERVICES BEING PROPOSED BY THE VARIOUS DEPARTMENTS IN THE GENERAL FUND.
AND THEN AS YOU CONTINUE GOING IN, THE ORANGE IS WHEN YOU START TO DIP INTO THE CIVILIAN COMPENSATION PHASE TWO IMPLEMENTATION FOR THE COMP STUDY AND THE CIVILIAN MERIT FUND AT THE 42471 RATE. AND THEN IN THE RED YOU GET DOWN TO THE NO NEW REVENUE RATE, WHICH WOULD BASICALLY WIPE OUT THE NON PAY RELATED SUPPLEMENTALS.
AND THEN YOU'D STILL NEED TO TAKE ABOUT 246,000 FROM EITHER THE CIVILIAN 2% COST OF LIVING ADJUSTMENT OR THE FIRE AND POLICE 3% RAISES. ANDREW JUST TO. I'M SORRY, THIS IS JUST AN OPTION.
THIS GIVES YOU THE OPTION. THEN THEN YOU'VE GOT TO GO SOMEWHERE ELSE TO FIND IT.
CORRECT. YEAH. SO BASICALLY ANYTHING ABOVE. I JUST WANT TO BE CLEAR.
IT'S NOT THAT WE'RE SAYING NO, NO, GET RID OF THE PAY RAISES.
IT'S JUST THESE THAT'S THE OPTION THAT YOU'RE HAVING TO GET TO.
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EVERYTHING ABOVE THAT IT'S, IT DIPS INTO THE COMPENSATION STUDY AND THE CIVILIAN MERIT FUND AND CERTIFICATE PAYS AND SOME OF THOSE THINGS.SO JUST ALLOWING FOR SOME DIFFERENT OPTIONS. THEN THE NEXT SLIDE, JUST TO REGROUP ON WHERE WE STOOD ON THE, THE BUDGET HIGHLIGHTS. WE ARE OF COURSE PROPOSING ADDITIONAL RESOURCES FOR THOSE POTENTIAL RAISES AND COMPENSATION ADJUSTMENTS, AS WELL AS ADDITIONAL SERVICES WITH THE, THE ADDITIONAL 2 MILLION IN EITHER NEW AMW OFFICERS NEW CUSTODIANS AND THOSE SORTS OF INCREASES. CONTINUED CIP FUNDING DEDICATED TOWARDS STREET MAINTENANCE.
WE'VE ALSO GOT THE WASTEWATER TREATMENT FACILITY, LOW INTEREST LOAN AND ADDITIONAL FLEET PURCHASES, FIRE APPARATUS, EQUIPMENT AND HEAVY EQUIPMENT REPLACEMENT PROGRAM.
AND THEN WE ALSO ADDRESSED ADDRESSED RISING COSTS IN SOME OF OUR VITAL AREAS COMMODITIES, MATERIALS, SUPPLIES AND SOFTWARE. NEXT SLIDE IS OUR PROPOSED FEE CHANGES THAT WE DISCUSSED IN OUR PREVIOUS MEETINGS.
BUT JUST THE 2% COLA AND THE 3% POLICE AND FIRE.
JUST A 2%. DID WE NOT TALK ABOUT A 3%? WE DID.
BUT THE EXTRA 1% WAS GOING TO BE A MERIT FUND.
SO THAT GETS CUT OUT STARTING IN THE ORANGE HIGHLIGHTS AT POINT.
OKAY. YOU BROUGHT UP A .4427, BUT THAT IS NOT ON THIS, CORRECT? OH, NO. YEAH. THAT'S ON THE OTHER. THAT'S THE ONE I EMAILED OUT.
SO. OKAY. OKAY. 4227, 42170 AND 42119. DIFFERENT OPTIONS.
YES. OKAY. 19 DIFFERENT OPTIONS. BASICALLY 42471 AND UP IS THE ORANGE AND ABOVE.
YES, SIR. AS FAR AS PROPOSED FEE CHANGES THE CURRENT BUDGET DOES HAVE BUILT IN SOLID WASTE RELATED FEES ON THE RESIDENTIAL AND COMMERCIAL SIDE. THERE'S ALSO LANDFILL FEES.
SO THAT THAT 1.2 SAYS NOT FACTORED INTO THE BUDGET YET.
YES. SO THAT FEE INCREASE HAS NOTHING TO DO WITH ANYTHING ON THE PREVIOUS PAGES.
CORRECT. AND THAT FEE INCREASE IS GOING TO GO TO EQUIPMENT AND PERSONNEL.
I KNOW I SENT SOME TEXT MESSAGES, SOME PHOTOS.
SO I THINK WHAT WE WOULD TRY TO PROMOTE THROUGH THIS, YES, IT'S A FEE INCREASE, BUT MOST OF THESE ENTITIES THAT SPEND LOTS OF MONEY OUT THERE, YOU KNOW, IF I'M HAULING A REFRIGERATOR OUT THERE, I MAY NOT NOTICE ON THAT $4, YOU KNOW, DIFFERENCE. BUT IF THAT'S MY BUSINESS WHAT I WOULD HOPE TO SEE IS EFFICIENCIES.
AND SO YES, YOU'RE CHARGING ME MORE PER LOAD ON THE PER TON RATE.
BUT IF MY EMPLOYEE THAT I PAY 25 AN HOUR TO SPENDS 30 MINUTES IN THE LANDFILL VERSUS AN HOUR AND A HALF HOW MUCH OF THE 1.2 MILLION IS GOING TO INCREASE EFFICIENCIES IN THE WORKFLOW OUT THERE OF THE LANDFILL? CAN WE SPEAK TO THAT? YEAH, WE COULD HAVE ALAN COME UP AND TOUCH ON THAT.
AND, ALAN, YOU DON'T HAVE TO GET INTO DEPTH. IT'S JUST A POINT WE NEED TO MAKE IN THE CONVERSATION OF, ARE WE JUST RAISING RATES BECAUSE WE CAN, OR ARE WE RAISING RATES WITH THE INTENTION TO ACTUALLY HIT THE BOTTOM LINE FOR SERVICE AND IMPROVEMENTS? I DON'T EXPECT ANY SIGNIFICANT SERVICE IMPROVEMENTS THERE. YOU KNOW, RIGHT NOW WE'RE AVERAGING BETWEEN 20 AND 30 MINUTES FOR WAIT TIME AT THE LANDFILL OVER THE PAST FOUR WEEKS. IT REALLY WOULD BE ABOUT COMPLIANCE WITH OUR TCEQ PERMIT TO ENSURE WE HAVE THE EQUIPMENT TO DO THAT EFFICIENTLY FOR US TO, SO THAT WE CAN DO IT WITH THE EMPLOYEES THAT WE HAVE. NOW, WHEN WE HAVE A LANDFILL THAT IS IN COMPLIANCE, AS WE DO RIGHT NOW, THAT IS A BENEFIT TO OUR CUSTOMERS SO THAT THEY HAVE MORE CHOICES OF OUR LANDFILL VERSUS OTHER LANDFILLS IN THE AREA.
BUT I THINK FROM WHERE WE'RE AT RIGHT NOW, I CAN'T SAY THAT IT'S AND I WOULDN'T COMMIT TO IMPROVING SAY WAIT TIMES OR ANYTHING LIKE THAT, BECAUSE I THINK WE'RE DOING VERY GOOD THERE RIGHT NOW. BUT JUST HAVING A WELL FUNCTIONING LANDFILL THAT'S MEETING THOSE THOSE PERMIT REQUIREMENTS IS BENEFICIAL TO OUR CUSTOMERS.
SO I WOULD HOPE THAT THE GATE ATTENDANT WOULD BE BENEFICIAL IN JUST DIRECTING TRAFFIC.
I THINK TRAFFIC FLOW OUT THERE WOULD BE THE NUMBER ONE THING THAT LIKE WHEN YOU ARE RUNNING 30 MINUTE WAIT TIMES IN AND OUT OF THE LANDFILL, I THINK IT'S BECAUSE YOU'RE DIRECTING TRAFFIC VERY WELL. AND THEN NOT EVERYBODY HAS BEEN OUT THERE.
RIGHT? SO I THINK IF YOU'RE A FIRST TIME USER OR NOT A FREQUENT USER, HAVING THAT GATE ATTENDANCE PROBABLY GOING TO HELP SOLVE A LOT OF PROBLEMS. IT WOULD. ONE OTHER THING, AND I APPRECIATE YOU MENTIONING THAT. AND IT IS ON THE CUSTOMER SERVICE SIDE, WHAT WE HAVE RIGHT NOW IS YOU MENTIONED SOMEBODY IN A PICKUP TRUCK BRINGING A REFRIGERATOR. THAT PERSON VERSUS SOMEBODY BRINGING TONS OF MATERIAL ARE ALL GOING TO THE SAME PLACE.
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AND SO WHAT WE COULD BE ABLE TO DO WITH THE $1.2 MILLION IS ALSO INSTALL A LOCATION AT THE ENTRANCE TO THE LANDFILL OR JUST PAST THE SCALES, WHERE IF YOU DON'T HAVE THE ABILITY TO UNLOAD YOUR EQUIPMENT AUTOMATICALLY, YOU HAVE TO HAND UNLOAD.THEY DON'T HAVE TO BE NAVIGATING AROUND SMALLER VEHICLES.
OR IF YOU'RE SOMEONE LIKE ME WHO JUST WANTS TO DO A WEEKEND PROJECT AND TAKE SOME THINGS TO LANDFILL. I DON'T HAVE TO GO UP THERE AROUND THOSE BIG COMPACTORS NOW. I CAN STAY DOWN THERE CLOSER TO THE GATE. SO THERE ARE SOME THINGS INCLUDED IN THAT 1.2 MILLION THAT WOULD PROVIDE A SIGNIFICANT CUSTOMER SERVICE.
THAT'S WELL SAID, I APPRECIATE THAT. WHAT IS THE RATE LOOK LIKE IF YOU INCREASE THIS 24%, WHICH SOUNDS LIKE A LOT, WHAT DOES THAT PUT US NEXT TO OUR COMPETITORS? IT WOULD ACTUALLY HAVE US BELOW WHERE OUR COMPETITORS ARE AT TODAY. I DON'T KNOW IF THEY'RE INTENDING ON INCREASING THEIR RATES THIS YEAR OR NOT, BUT IT WOULD HAVE JUST SLIGHTLY BELOW OUR COMPETITORS WITHIN $0.01, I BELIEVE.
OKAY. THANK YOU SIR. APPRECIATE THAT. SORRY, ANDREW, BACK ON TO YOUR PRESENTATION.
SO YOU GOT VARIOUS DEPARTMENTS THAT CONTRIBUTED.
CITY MARSHAL, ANIMAL MANAGEMENT, PLANNING HAD SOME SLIGHT INCREASES TO THEIR SUBMITTAL FEES.
ENVIRONMENTAL HEALTH, GOLF MADE SOME MAJOR ADJUSTMENTS.
I'LL TOUCH ON THE 2 MILLION SUPPLEMENTAL REQUESTS.
ON THE NEXT SLIDE CONTINUES FIRE AND FIRE MARSHAL COST RECOVERY.
AND THEN YOU GET INTO OUR UTILITY FUND AND DRAINAGE FUNDS.
AND THEN WE ALSO HAVE DEBT SERVICE RATES BUILT IN AS WELL, 3% ON BOTH THE WATER AND SEWER SIDE.
THAT WOULD GO TOWARD THE PAYMENT OWED ON THE LOW INTEREST LOAN FOR THE 60 MILLION WASTEWATER LOAN FROM THE STATE, AND THEN 5% PROPOSED FOR A FEE TO COVER THE DEBT SERVICE FOR A DRAINAGE BOND THAT WOULD GO TOWARD THE TWO STREET PROJECTS OSAGE AND COLTER RECONSTRUCTION AND WIDENING. THEN ON THE NEXT SLIDE, THIS IS THE BREAKDOWN THAT SHOWS WHERE THOSE DOLLARS WOULD BE ALLOCATED BASED ON THE ON THE CURRENT PROPOSAL WITH ALL FEES ADJUSTED.
VATRE. VATRE RATE PROPOSED. YOU'VE GOT A TOTAL GOING TOWARD THE PERSONNEL SIDE OF 5.7 MILLION.
AND THEN I'VE GOT IT BROKEN OUT. THIS IS SLIGHTLY CHANGED.
BASED ON THE ADDITIONAL REVENUES WE ACCOUNTED FOR AND THE VATRE RATE.
I DID WANT TO SHOW YOU HOW WE COULD ALLOCATE SOME ADDITIONAL CERTIFICATE PAY FOR POLICE.
THOSE ARE RELATED TO RE CLASSES TO ACCOUNT FOR RANK STRUCTURE.
SO THIS IS BASICALLY THE DIFFERENCE THAT WOULD JUST GO AHEAD AND PAY THEM AT THEIR RATES INSTEAD OF HAVING SOMEONE HAVE TO BUMP UP AND HAVE KIND OF THE PAYROLL SITUATION OF TRACKING HOURS IN A DIFFERENT CLASSIFICATION.
SO THIS WAS SOMETHING THAT CAME UP IN OUR, IN OUR MEET AND CONFER DISCUSSIONS.
AND ONCE WE DOVE INTO A LITTLE BIT FURTHER, IT WASN'T AS SIGNIFICANT OF A COST AS WE ORIGINALLY THOUGHT TO, TO DO THOSE THREE CLASSES. FREEMAN. I KNOW WE SAW THE CITY OF LUBBOCK PUSHING HARD FOR PAY RAISES, ESPECIALLY ON THEIR FIRE SIDE. AND SO IN THOSE MEET AND CONFERS, I KNOW WE WERE TRYING TO STRETCH AND DO THE ASK WAS, WAS FAR MORE THAN I THINK WHAT YOU'VE GOT REPRESENTED HERE.
BUT YES. GIVE ME THE THE 1% AMOUNTS BECAUSE THIS CONSIDERS SO SAY FOR FIRE 1.45 THAT CONSIDERS THE FULL 3% CORRECT. YES. THAT IS A FULL 3%. SO IS IT ROUGHLY $500,000 EVERY PERCENT.
SO IF COUNCIL WAS TO SAY INCREASE FIRE TO 4%, YOU KNOW, FIRE FOR 1%, MY INITIAL PROJECTIONS WERE 365,365. WHAT'S 1% ON POLICE? 474,074. WHAT'S 1% ON THE REST OF THE ORGANIZATION? 711,000. MAN. YOU'RE GOOD. OKAY. THANK YOU. YES, SIR.
SO THAT COVERS THE PERSONNEL SIDE OF THE PROPOSAL.
THE NEXT SLIDE IS THE REMAINING SUPPLEMENTAL.
THERE WERE STILL ABOUT 2 MILLION LEFT TO. I LOST MY SLIDE SHOW AGAIN.
HERE WE GO, BABY. OKAY. SO THIS HAS THE
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02,092,000 THAT WAS REMAINING TO TO ALLOCATE TOWARD AND INCREASE SERVICES A LITTLE BIT TO POLICE AND FIRE OVERTIME.SO WE GOT PUBLIC SAFETY COMBINED THAT WAS SEEING ABOUT 30% OF THE AMOUNT OF GENERAL FUND SOFTWARE WAS 29% BECAUSE THAT WAS 600,000 TOTAL BETWEEN HR AND FINANCE. A SHARE OF OUR ANNUAL WORKDAY SUBSCRIPTION.
AND THEN YOU GOT PARKS MAKING UP THE BIGGEST SHARE AFTER THAT OF 19% OR 402,000.
BUT REALLY JUST A, A VARIETY OF AREAS OF NEED THAT WE TRIED TO, TO DIVVY UP AMONGST DEPARTMENTS.
THIS INCLUDES 2 AMW ANIMAL MANAGEMENT OFFICER ADDITIONS, A NEW OEM EMERGENCY MANAGEMENT SPECIALIST, A JUNIOR SUPERVISOR, AN ACC, A CODE CODE ENFORCEMENT OFFICERS, WHICH ARE THE CIVILIANS IN CITY MARSHAL'S OFFICE, GETTING THEM RADIOS FOR PUBLIC SAFETY. LET'S SEE HERE.
THE GOLF COURSE SUPPLEMENTALS 357,000 THAT THEY WOULD BE ABLE TO ALLOCATE TO TO THEIR OTHER NEEDS A NEW BUILDING SAFETY ELECTRICAL INSPECTOR, A NEW FACILITIES BUILDING MECHANIC TWO FACILITIES CUSTODIANS, AND THEN AN ENVIRONMENTAL HEALTH TECHNICIAN ARE THE FULL TIME EMPLOYEE ADDITIONS.
SO IT WAS 2,000,092 THAT WE ALLOCATED TOWARDS THESE REQUESTS FROM THE ORIGINAL DEPARTMENT REQUESTS OF 19 MILLION. OH, THANK YOU CHRIS. OUR NEXT SLIDE, WE HAD A REQUEST TO SHOW THE DIFFERENT ACCOUNTS THAT ARE IN OUR CIP PROPOSAL.
I'VE GOT SOME HIGHLIGHTED IN GREEN ON THERE. THOSE ARE THE ONES THAT OVER TIME THEY HAVE HISTORICALLY BEEN FUNDED RIGHT OFF THE TOP AS A PORTION OF THE PROPERTY TAX RATE. SO THERE WAS A CALCULATION DONE AT THE TIME TO FUND 2.51 MILLION FOR STREETS E AND I AND THEN PARKS E AND I IS CURRENTLY DOWN TO 922,000.
IT WAS ACTUALLY, I BELIEVE A LITTLE OVER 2 MILLION, BUT THEY'VE USED SOME OF THEIRS FOR DEBT SERVICE, WHICH HAS REDUCED IT TO 922,000. THE REMAINING, WHILE HISTORICALLY HAVE BEEN FUNDED WITH ONE TIME DOLLARS, THEY DO HAVE TO COME AND ASK US THROUGH THE PROCESS AN ANNUAL APPROVAL THROUGH COUNCIL TO CREATE THESE E&IS.
AMW IS ONE OF THE NEWEST. THE CURRENT BUDGET YEAR IS THE FIRST TIME THEY'VE HAD E&I.
NEXT SLIDE IS THE PERSONNEL AND RECURRING NEW SUPPLEMENTAL REQUESTS OF THE DIFFERENT FUNDS.
JUST A REMINDER ON THOSE YOU GOT UTILITIES, DRAINAGE IT AIRPORT FLEET SOLID WASTE AND CIVIC CENTER.
SOME OF THESE ARE BUILDING IN THE THE 2% COLA AND 1% MERIT FUND.
THOSE ARE THE PERSONNEL INCREASES. AND THEN THE SUPPLEMENTAL WAS THE THE EXCESS AVAILABLE TO CONTINUE TO EITHER ADD STAFF OR INCREASE LINE ITEMS IN THEIR DEPARTMENTS BASED ON THE GROWING EXPENSES THAT THEY HAVE AND SOME OF THEIR AREAS.
NEXT UP IS OUR ONE TIME CASH PURCHASE CIP GENERAL FUND.
THIS IS WHAT YOU'D CONSIDER THE YEAR ONE OF THE CIP.
WE HAD A TOTAL REQUEST OF 54 MILLION, WHICH IS ACTUALLY A LITTLE LOW, BECAUSE PART OF THIS LIST I TOOK FROM RECURRING GENERAL FUND ASKS, AND I TRIED TO SHIFT AS MUCH AS WE COULD INTO ONE TIME PURCHASES.
SO YOU'LL SEE EXAMPLES ON HERE OF 70 TASERS FOR APD, A FIVE YEAR CONTRACT.
BUT SINCE WE DIDN'T HAVE THE CAPACITY THAT WE'RE JUST TRYING TO FUND IT IN ONE TIME DOLLARS.
SO WE HAVE A TOTAL OF 13.9 MILLION ALLOCATED HERE BASED ON GENERAL FUND, THE MAJORITY IS 38% GOING TO PUBLIC SAFETY NEEDS. THESE INCLUDE POLICE, RADIO ENCRYPTION, TASERS, SWAT NIGHT VISION, A ROOK WITH TRAILER, PUBLIC SAFETY WELLNESS VEHICLES. WE'VE GOT CONTINUE FUNDING OF EMS CARDIAC MONITORS.
CONTINUE FUNDING OF APPARATUS EQUIPMENT PURCHASES FOR THE FIRE DEPARTMENT, A COUPLE OF NEW TRUCKS FOR THE FIRE DEPARTMENT, AND THEN A NEW DRONE FOR THE FIRE MARSHAL'S OFFICE.
AND THEN WE'VE GOT DESIGN ONLY AND SOME LAND ACQUISITION FOR THE FIRE DEPARTMENT OF A FIRE STATION SIX REBUILD, LAND ACQUISITION FOR FIRE, AND THEN ALSO DESIGN COSTS FOR THE FIRE TRAINING FACILITY, MULTI MULTI PURPOSE CLASSROOM OUT AT THE AIRPORT.
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MR. FREEMAN CAN YOU GO BACK TO 14? 2 SLIDES BACK.YES SIR. I PROBABLY MIS MISHEARD YOU. SO I UNDERSTOOD STREETS E AND I, PARKS E AND I, SOLID WASTE E AND I, PROPERTY TAX FUNDED? SO SOLID WASTE WOULD BE RATE FUNDED.
STREETS AND PARKS WOULD HAVE BEEN COMING FROM THE TAX RATE SIDE.
AND THEN EVERYTHING ELSE THAT YOU SEE HERE IS BASICALLY SOME OF THEM APPEAR TO BE RECURRING BECAUSE THEY GET ASKED FOR EVERY YEAR, BUT THEY'RE NOT GUARANTEED UNTIL COUNCIL APPROVES IT.
THE PAGE 16 SAYS ONE TIME CIP GENERAL FUND. WE'VE GOT LISTED THE STREETS E AND I AND THE PARKS E AND I AGAIN AS ONE TIME FUND. ARE YOU JUST LISTING THEM IN BOTH CATEGORIES EVEN THOUGH THEY ARE COVERED, IN THE COVERED? IF Y'ALL HAD A DIFFERENT USE FOR THAT 2 MILLION RECURRING MONEY, IT COULD TECHNICALLY GO TO SOMETHING ELSE, BUT THIS HAS JUST BEEN HISTORIC USAGE OF THOSE FUNDS FOR DECADE FUNDING.
ARE YOU RECOMMENDING THAT WE ONE TIME FUND THIS THROUGH CIP THIS YEAR, AND YOU WILL YOU LOOSEN UP THE? RIGHT NOW NO, IT IS STILL PROPOSED AS ONE TIME FROM THE RATE.
BUT IT'S IT'S EATING INTO YOUR RECURRING CAPACITY.
IT'S NOT, IT'S NOT INCLUDED IN THE 13.9 HERE FOR THE ONE? IT IS. IT IS, BUT IT'S ALSO INCLUDED IN THE PROPERTY TAX.
BUT YOU'RE SAYING IT'S COMING FROM THE M AND O RATE.
YEAH. YES, EXACTLY. AND IT'S JUST IT'S ALLOCATED RIGHT ON THE FRONT END.
WE KNOW AS WE GO THROUGH THE BUDGET PROCESS NOT TO ALLOCATE THAT RECURRING FUNDING ANYWHERE ELSE, BECAUSE WE KNOW COUNCILS IN THE PAST HAVE TOLD US WE WANT X AMOUNT FOR PARKS AND X AMOUNT FOR STREETS.
SO DON'T BASICALLY DON'T TOUCH THAT UNTIL ABSOLUTELY NECESSARY.
OKAY. BUT BUILT INTO THE BUDGET AS PRESENTED, CORRECT? OKAY. YES, SIR. THANK YOU. AND THEN THE NEXT BIGGEST CATEGORY IS, OF COURSE AT STREETS AT THE 2.5 MILLION, AT 18%, AND THEN PARKS AND REC AT 16%, 2.2 MILLION.
AND THEN TRAFFIC IS NEXT AT 10% OF THE ALLOCATION.
BUT SIMILAR TO THE THE 2 MILLION IN SUPPLEMENTALS TRYING TO HIT AS MANY PRIORITIES AS WE CAN, WE'VE GOT A GOOD NUMBER GOING TOWARDS TRAFFIC, ARTERIAL SIGNALS, PAVEMENT MARKINGS, AND ALSO NEW TRAFFIC SIGNAL, CONSTRUCTION PARKS, IRRIGATION PUMP STATION AND CENTRAL CONSOLE SYSTEM.
WE'VE GOT IT SOFTWARE BUILT IN HERE, 500,000 THAT WOULD HELP GET US A FEW YEARS OF OF SOFTWARE.
AND ON THE NEXT SLIDE, WE'VE GOT THE ONE TIME CASH CIPS FOR THE OTHER FUNDS, 13 MILLION ALLOCATED FOR UTILITIES, 3 MILLION FOR SOLID WASTE DRAINAGE, 800,000 CIVIC CENTER 1.9 AND AIRPORT 5.7.
SO, MR. FREEMAN, WHERE DOES THAT MONEY COME FROM RIGHT NOW? IS THAT IN EXISTING CIP? THESE ARE NEW FUNDS.
YEAH. THIS IS SOME OF IT WOULD BE EXCESS THAT COULD BE ROLLED TO ONE TIME.
SOME OF IT IS RATE BASED AS FAR AS FUNDING IT.
SO SOME OF THIS CIP IS FUNDED ON RATES. SO LET'S SAY SOLID WASTE IS A GOOD EXAMPLE RIGHT? YOU INCREASE THE RATE TO BE ABLE TO GO SPEND $1 MILLION TO REPLACE TRASH CANS AS AN EXAMPLE.
RIGHT. CORRECT. THE UTILITIES THAT 13 MILLION, IS THAT MAINLY SEWER AND WATER? YES. THAT IS SEWER AND WATER. NOT TO BE CONFUSED WITH UTILITY BILLING.
CORRECT. LIKE THIS IS ALL INFRASTRUCTURE. 13 MILLION.
YES, SIR. AND THOSE MONIES AREN'T FROM AVAILABLE FUND BALANCE.
YOU'RE SAYING THOSE ARE MONIES THAT ARE FROM WHERE A PORTION COULD BE AVAILABLE, FUND BALANCE.
SO SOME OF THAT COULD FUND ONGOING OPERATIONS AND SOME OF IT COULD BE FUNDING CIP.
SO SOME OF YOUR PROPOSED RATES YOU HAVE AN 8% INCREASE PROPOSED THAT FUNDS ONE TIME, EVEN THOUGH THAT WOULD BE A CONTINUAL RATE AS WE PUSH IT FORWARD. SO YOU'RE GOING TO BUILD INTO THAT RATE CIP ONE TIME FUNDS, YOU KNOW, IN PERPETUITY.
YEAH. THAT'S BEEN THE MODEL OF GO AHEAD AND INCREASE THE RATE, USE IT FOR ONE TIME.
[00:35:03]
BUT WHEN THE DAY COMES, EITHER FOR THE WASTEWATER PLANT PROJECT OR YOUR RATES ALREADY BUILT, YOU'LL JUST REDUCE YOUR ONE TIME AND ADD IT TO JUST ONGOING DEBT PAYMENT PORTION OF THAT 8%, I THINK IT'S AROUND 5% IS JUST GOING TO OUR CRIMINAL LAW ANNUAL INCREASE THIS YEAR.WE THOUGHT WE'D HAVE A LITTLE BIT MORE FOR CIP PROJECTS, BUT SINCE THEY'RE DOING THE SAME THING AS US, THEY'RE TRYING TO BUILD ANNUAL CAPACITY UP TO THAT ULTIMATE RATE FOR DEBT SERVICE.
THIS WAS THE FIRST YEAR IN THAT PROGRAM. OKAY.
AND OUR NEXT SLIDE IS OUR PROPOSED DEBT SCHEDULE ON THE GENERAL FUND TAX RATE SIDE OF THE BUDGET.
THERE IS A FIRE APPARATUS CONTINUING THE PROGRAM OF BUYING NEW ENGINES AND LADDERS.
THERE'S A SIX $6.2 MILLION PURCHASE PROPOSED.
THIS IS THE ONE THAT WE'VE BUILT THE I&S RATE TO BASICALLY SUSTAIN THIS ROLLING MODEL.
SO IT'S REALLY JUST MINIMAL ANNUAL ADJUSTMENTS TO ACCOMMODATE THE PURCHASES.
AND THEN ON THE STREET SIDE, WE'VE GOT 42.5 MILLION FOR SUMMER MAINTENANCE, AROUND 12 MILLION THE REMAINDER FOR TWO ARTERIAL RECONSTRUCTION PROJECTS, WHICH WOULD BE OSAGE AND COLTER. IN SPEAKING WITH OUR BOND COUNCIL AND FINANCIAL ADVISORS, WE REALLY HAVE THE ABILITY, SINCE THESE ARE 24 MONTH BUILDS, THAT WE COULD ISSUE IT OVER TWO YEARS, AND THAT WOULD ALLOW US TO ADJUST OUR TAX RATE TO KIND OF KEEP IT STEADY INSTEAD OF SEEING A LARGE, A LARGE SPIKE. RIGHT NOW WE'RE, WE'RE PROJECTING THAT IT WOULD ONLY BE MAYBE A $0.01 INCREASE.
BUT ONCE THE TIME CAME TO ACTUALLY ISSUE THE DEBT, WE WOULD HAVE FURTHER ANALYSIS AND KNOW MAYBE WE WOULD PROPOSE TO DO A LITTLE LESS SUMMER MAINTENANCE SO WE CAN COMPLETELY KEEP IT FLAT.
OR COUNCIL MAY DECIDE IT'S, IT'S STILL WORTH IT TO GO AHEAD AND INCREASE IT.
ONE PENNY TO ACCOMPLISH A 42.5 MILLION COMPARED TO IN THE PAST.
AND IT MIGHT ONLY ACCOMPLISH 20 MILLION. SO THAT'S OPTIONS.
BUT FORTUNATELY THAT ONE WILL JUST WILL SHOW IT IN THE CIP, BUT IT WOULD BE A SPRING DEBT ISSUANCE, SO THERE'D BE MORE TIME TO DISCUSS THE DETAILS ON THAT ONE. AS FAR AS THE UTILITIES FUND FEE IMPACTS FOR THE BUDGET, IT'S RELATED TO THE $60 MILLION TWD LOAN PROJECT.
SO 9.5 MILLION COULD ALSO BE ISSUED OVER TWO YEARS TO COVER THAT DEBT SERVICE PAYMENT.
WE'RE NOT ABLE TO DO A COMBINED DEBT ISSUANCES.
WE REALLY HAVE TO SPLIT IT UP BECAUSE STREETS CAN'T PLAY FOR DRAINAGE AND VICE VERSA.
SO THAT'S WHY YOU SEE IT LISTED TWICE FOR BASICALLY THE SAME PROJECT.
SO THEY'RE GOING TO BE PURCHASING 8.5 MILLION IN FLEET REPLACEMENTS.
NO IMPACT TO THE I&S OR OR RATES ASSOCIATED WITH THAT ONE.
AND THE LAST SLIDE TO TO KIND OF WRAP UP WHERE WE ARE BEFORE GETTING FEEDBACK IS OUR FUTURE BUDGET PRIORITIES, OF COURSE, CONTINUE TO, TO ADDRESS AGING INFRASTRUCTURE, WHETHER IT'S STREETS, WATER, SEWER FACILITIES, DRAINAGE AND OTHER CITY FACILITIES, WORKING ON PLANS FOR EXPANSION OF CITY SERVICES TO ADDRESS GROWTH, WHETHER THAT'S NEW STAFFING AND PUBLIC SAFETY FOR FOR COVERAGE OF THEIR, THEIR BEATS AND, AND DIFFERENT AREAS ACROSS TOWN. OR IT'S A NEW FIRE STATION AFTER FIRE STATION 14 IS BUILT, THERE ARE STILL MULTIPLE AREAS THAT COULD USE A FIRE STATION FOR COVERAGE.
SO THAT'S PART OF THE MASTER PLAN WE'VE BEEN WORKING ON WITH THE FIRE DEPARTMENT.
CONTINUE TO ADDRESS STAFFING, RECRUITMENT AND RETENTION FOR PUBLIC SAFETY IN ALL CITY PERSONNEL.
THAT PUBLIC SAFETY IS A GOOD ONE. THAT'S CONTINUING THE CONVERSATION WITH [INAUDIBLE] WHETHER IT'S FIRE OR POLICE, AND ADDRESSING FOR WHAT WE CAN DO TO ACCOMMODATE FURTHER INCREASES OR CHANGES TO HOW THE DEPARTMENT OPERATES BASED ON.
NOW WE KNOW THAT LUBBOCK IS GOING A CERTAIN DIRECTION WITH THEIR SHIFTS AND THE WAY THEY OPERATE, WHICH WILL MAKE IT CHALLENGING ON THE RECRUITMENT AND RETENTION SIDE OF THE OF THE FIRE DEPARTMENT IN PARTICULAR, AND THEN CONTINUE TO MAINTAIN CURRENT SERVICE LEVEL CITYWIDE AS WE CONTINUE TO GROW AND HAVE THE LABOR MARKET BECOME MORE COMPETITIVE.
AND THEN THAT LAST ONE ON THE FAR RIGHT IS CONTINUE TO EVALUATE IF WE'RE HITTING THE POINT THAT WE NEED TO GO THE VOTERS FOR A SPECIFIC REQUEST TO MAKE EITHER MAJOR ADDITIONS TO THE PUBLIC SAFETY AREAS OR OTHER AREAS OF OUR BUDGET THAT JUST AREN'T ABLE TO BE ACCOMMODATED UNDER THE THE VATRE 3.5% TAX RATE COLLECTION.
AND THAT COMPLETES MY PRESENTATION. WE DO HAVE A FEEDBACK FROM COUNCIL SIDE HERE.
SEPTEMBER 22ND WILL BE THE FIRST READING OF THE BUDGET AND THE TAX ORDINANCES.
[00:40:02]
SO REALLY, THE REMAINDER OF OUR TIME IS JUST TO GET FINAL INPUT DIRECTION, PROPERTY TAX RATE THAT WE CAN FOCUS ON.I WOULD ON PAGE 19, THE ONE THING THAT I WOULD LIKE TO MAYBE PUT OUT FOR CONSIDERATION IS BECAUSE THIS IS GOING TO HAPPEN ONE WAY OR ANOTHER, LESS DEPENDENCY ON PROPERTY TAX TO OPERATE THE CITY, EITHER BY CHOICE OR BY FORCE.
YOU KNOW, WE'RE GOING TO BE ABLE TO DO IT. BUT TO ME, THE QUESTION IS, OKAY, WHERE ARE WE GOING? AND PROPERTY TAX, UNLESS I'M MISTAKEN, WILL PROPERTY TAX HELP US CATCH UP WITH ALL THESE NEEDS? IT'D BE. IT'D NEED TO BE A SIGNIFICANT PROPERTY TAX INCREASE.
IT HAS TO BE A SIGNIFICANT PROPERTY TAX, AND IT'S GOING TO HAVE TO BE ONE THAT'S APPROVED BY VOTERS. YES, EXACTLY. THAT CAN ALWAYS BE FINICKY, BUT EXACTLY.
PUTTING ODDS ON BEING ABLE TO DEAL WITH THE THE AGING INFRASTRUCTURE, EXPANDING SERVICES, YOU KNOW, STAFFING, RECRUITMENT AND RETENTION, THE DEPENDANCE ON PROPERTY TAXES TO PAY FOR THOSE IS GOING TO BE A CHALLENGE.
UNLESS I'M MISTAKEN. SO I GUESS PART OF WHAT I THINK WE NEED TO LOOK AT IS, AND THIS IS NOT FOR TODAY, BUT JUST THAT WE PUT ON THE LIST. WHAT OTHER REVENUE SOURCES CAN WE LOOK AT? AND TO ME, SALES TAX HAS GOT TO BE ONE. I MEAN, THAT THAT WE YOU KNOW, I THINK WE JUST KIND OF SAY, OKAY, WE GET THE SALES TAX THAT COMES IN, WHATEVER HAPPENS, HAPPENS.
BUT YOU KNOW, WHAT DO WE NEED TO BE DOING AND WHAT CAN WE DO? I MEAN, WE'RE FORTUNATE WHEN I LOOK AT OTHER CITIES THAT, YOU KNOW, WE'VE GOT, YOU KNOW, WE'RE I THINK WE'RE NUMBER WHEN I LOOK AT WE'RE NUMBER 12 IN THE STATE, WE'RE WE'RE OVER OF THE TOP 20.
WE'RE DOING PRETTY GOOD ON THE SALES TAX. THAT'S SOMETHING.
BUT BUT WHAT CAN WE DO? WHAT CAN THE COMMUNITY DO? BECAUSE I THINK IF WE'RE GOING TO LOOK AT THERE'S NO CAP ON INCREASING THAT EACH YEAR.
YOU KNOW, WHAT ARE WHAT STRATEGIES CAN BE DONE? BECAUSE I DON'T SEE ANY OTHER WAY UNLESS YOU'RE GOING TO FEES, WHATEVER ELSE IT MAY BE.
I'VE NOT HEARD ANYTHING BEING DISCUSSED AS FAR AS THAT'S CONCERNED.
ALL OF YOUR FEES HAVE A BACKSIDE. THERE'S THERE'S ALWAYS THERE'S ALWAYS A BALANCING OF, IS THIS FEE MORE THAN WE NEED FOR THE COST? IS THIS FEE UNREASONABLE? WHOSE THIS FEE IMPACTING? IS IT A CERTAIN SEGMENT OR IS IT ALL CITIZENS EQUALLY? SO THOSE THOSE FEES HAVE A BACKSIDE THAT, THAT MAKES THEM DIFFICULT TO JUST INCREASE.
THE SALES TAX ONE DOESN'T HAVE A BACKSIDE NECESSARILY.
IT'S STRICTLY WHAT OUR COMMUNITY PRODUCES. AND I'VE BEEN TALKING TO A FEW INDIVIDUALS RECENTLY GETTING OUT, TALKING TO SOME INDIVIDUALS ABOUT A, ABOUT SHOP LOCAL CAMPAIGNS THAT THEY'LL BE TRYING TO PURSUE HERE SOON.
BUT WHAT WE DON'T KNOW IN THAT, IN, IN HOW THEY'RE GOING TO MAKE UP FOR THAT IS HOW DEPENDENT IS THAT CITY ON? YOU KNOW, WHAT'S THEIR BUDGET BASED ON HOW MUCH PROPERTY TAX, YOU KNOW, BASED ON THAT.
SO IT'S, YOU KNOW, I DON'T KNOW IF IT'S GOING TO BE EQUAL.
NOBODY KNOWS. I DON'T THINK LIKE YOU SAID, THEY KEEP COMING UP, COMING UP WITH PROPOSED SOLUTIONS, BUT NONE OF THEM WORK. SO THE GREATER THE CITY IS RELIANT ON PROPERTY TAXES, I WOULD HAVE TO BELIEVE THEY CAN'T JUST CUT CUT THAT COMPLETELY BECAUSE THEN THAT CITY COULDN'T FUNCTION. SO, YOU KNOW, IF WE'RE SAYING, YOU KNOW, BY CHOICE OR BY FORCE I DON'T KNOW THAT IT'S GREAT THAT WE CONTINUE TO REDUCE OUR DEPENDANCE ON THAT WHEN THEY'RE ALREADY THEY'RE GOING TO DO IT ANYWAY.
BUT IF OUR, OUR PIECE OF THE PIE THAT THEY'RE GOING TO GIVE OUT, WHATEVER THAT IS, INCREASE IN SALES TAX OR WHATEVER IT IS TO MAINTAIN OUR ORGANIZATION, I THINK IS IMPORTANT AS WELL. YEAH. THE STATE HAS HAS A CONUNDRUM ON THEIR HANDS BECAUSE REMEMBER, MOST CITIES IN THE STATE OF TEXAS ARE NOT OUR SIZE.
MOST OF THEM DO NOT HAVE THE RETAIL OR INDUSTRIAL BASE THAT WE HAVE.
SO MOST CITIES ARE DEPENDENT ON PROPERTY TAX.
MOST SMALL TOWNS DON'T HAVE THE SALES TAX WE DO.
AND SO EVEN US, AS WE AS WE SEE IN OUR BUDGET, IT'D BE A LARGE HOLE TO FILL.
IT COULD BE IT'D BE HARD TO HARD TO MOUNT, BUT WE COULD FIGURE OUT A WAY.
[00:45:03]
BUT MOST TOWNS DON'T HAVE THAT. SO YEAH, THE STATE'S GOT TO FIGURE OUT A WAY TO MAKE THOSE COMMUNITIES WHOLE THROUGH THIS PROCESS.AND THEY HAVEN'T THEY HAVEN'T ANNOUNCED THAT YET. THEY KEEP TALKING ABOUT PROPERTY TAX RELIEF, BUT THEY REALLY HAVEN'T GIVEN US A WAY FORWARD YET. SO AGAIN, TML, THEY'LL BE BUSY TRYING TO ADDRESS THOSE AS THEY AS THEY OCCUR, AS BILLS COME UP, WE START ANALYZING THEM.
WE START THEY START DOING THE MATH. AND AS AS WE START.
AND THEN TEAM WILL TAKE ACTION ON OUR AND EVERY COMMUNITY'S BEHALF.
CAN WE GO TO PAGE SEVEN? SO I WANT TO MAKE SURE I'M FOLLOWING ALONG.
WHAT IS THE TIF CAPTURED VALUE? WHAT IS TIF? THAT'S TIRZ.
YEAH. TAX INCREMENT FINANCING OR TAX INCREMENT REINVESTMENT ZONE.
SO THAT'S OUR ALLOCATION THAT GOES TO THOSE THREE ZONES.
SO IT LOOKS TO ME LIKE WHEN THEY DO THAT IN IN OUR CALCULATION THEY THEY REMOVE THAT AMOUNT.
I NOTICED DOWN AT THE BOTTOM OF THE PAGE, YOU KNOW, IF YOU GO TO THE FAR RIGHT OVER THERE, YOU SEE YOU HAVE A LESS TIRZ TAXES OF 1.2 MILLION.
SO BECAUSE THEY TAKE IT OUT UP AT THE TOP AND THEY DON'T CALCULATE IT.
I UNDERSTAND IT NOT TO BE A DEDUCTION IN, YOU KNOW, THE END.
SO LIKE ESSENTIALLY WHAT I WOULD ASK IS THE NNR.
NO NEW REVENUE RATE IS A RATE THAT A MUNICIPALITY SHALL PASS THAT WILL BRING IN THE SAME AMOUNT OF REVENUES AS THE PREVIOUS YEAR ON THE SAME TAXABLE VALUE, ON THE SAME TAXABLE VALUE.
THAT'S RIGHT. SO YOU'VE ALREADY TAKEN OUT THE TIRZ VALUES.
SO I'D LIKE TO DOUBLE CHECK THAT, MAKE SURE THAT THAT'S CORRECT.
BECAUSE IN CONVERSATING WITH MRS. MCMURRAY OVER AT RANDALL COUNTY, YOU KNOW, SHE'S ASSURED ME THAT THAT NNR RATE WOULD BE EQUAL TO THE NNR RATE. OR I'M SORRY, WOULD BE EQUAL TO THE REVENUES THAT WILL PRODUCE THIS YEAR.
SO THOSE ARE THOSE ARE TWO DIFFERENT WAYS OF SHOWING THE INFORMATION ON THIS SLIDE AT THE TOP.
YEP. AND I FOLLOW YOU THERE. IT'S NOT DOUBLING IT UP.
WELL, I I'M NOT SURE THOUGH BECAUSE LIKE THE TAXABLE VALUE RATE SETS THAT RATE.
AND IT'S ALREADY FACTORED IN. SO IF YOU TAKE A 1.2 MILLION LINE ITEM DEDUCTION OFF THE BOTTOM LINE, YOU'RE YOU'RE REDUCING THAT PROJECTION, THERE'S 57 MILLION.
AND AND I'M CURIOUS WHY IT'S NOT 60.5 MILLION.
SO WE MET WITH HER LATE FRIDAY AFTERNOON BECAUSE I HAD LEARNED THAT.
I THINK YOU ALL MET. AND SO WE WENT OVER THERE BECAUSE I WAS I WAS CONCERNED IS SHE IS SHE SAYING SOMETHING THAT WE WEREN'T AWARE OF? BUT SHE ASSURED US THAT, NO, IT DOES NOT GUARANTEE THE SAME REVENUE. THAT'S STRICTLY, SHE SAID SHE DOESN'T SHE DOESN'T DO THE REVENUE SIDE OF THINGS.
SHE SAID SHE SETS THE, SHE HELPS US DETERMINE THE RATE.
BUT SHE SAID THAT THAT THE NEW THE REVENUES ARE NOT NECESSARILY GOING TO BE THE EXACT SAME.
SO THE RATE ITSELF SHOULD VARY IN ORDER TO PRODUCE THE SAME REVENUES IN THE CALCULATION.
WELL, SO AS YOU WORK YOUR WAY THROUGH SECTION ONE OF THE TRUTH AND TAXATION FORM, IT STARTS OFF WITH LAST YEAR'S TOTAL TAXABLE VALUE, THEN PULLS OUT ALL YOUR EXEMPTIONS WHICH YOUR AG, YOUR TIMBERLAND, YOUR YOUR TIRZ, OR WHAT WE CALL IT TIF.
AND SO AND THAT, AND FROM EVERYTHING I'VE SEEN, SOMETIMES IT'S MORE SOMETIMES IT'S THE SAME, SOMETIMES IT'S LESS, BUT IT ALL DEPENDS ON THE SPECIAL MIXTURE OF EXEMPTIONS, HOMESTEADS, IMPROVEMENTS. IT'S, IT'S A, IT'S A MIXTURE OF LOTS OF THINGS THAT, THAT, THAT, THAT IT ULTIMATELY PRODUCE THAT REVENUE FOR US.
RIGHT. AND THEN THAT CALCULATION NEEDS TO BE ACCURATE IN ORDER FOR US TO, TO KNOW THAT THE, THE TAX CEILINGS WERE TAKEN OUT. THEY WERE PUT BACK IN.
SO I'M LOOKING AT A PAGE THAT SHE GAVE YOU GUYS.
THIS IS WHAT MRS. MCMURRAY PRODUCED. AND SO CITY OF AMARILLO TAX ESTIMATES.
[00:50:06]
AND, AND WE, WE ALSO CONSERVATIVELY BUDGET WHEN WE START FACTORING IN A 98.5% COLLECTION RATE.SO WE'RE ALREADY GOING TO BACK IT DOWN. BUT IF YOU LOOK AT THE PROJECTION, RIGHT, THERE'S ANOTHER ONE, YOU KNOW, THE CITY OF AMARILLO ALL FUNDS THEIR PROJECTIONS.
WE ESTIMATED IN 26 WE WOULD BRING IN 82.3 MILLION.
WE'RE ESTIMATING IN 27 WILL BRING IN 82.6 MILLION AT THE NNR RATE.
THAT'S ONLY A $300,000 INCREASE BASED ON THE NEW TAXABLE VALUES.
SO BASICALLY, THE NO NEW REVENUE RATE WOULD PRODUCE THE EXACT SAME REVENUES AS THE YEAR BEFORE, JUST LIKE IT STATES. SO IF WE TAKE THIS HER, HER PAGE HERE SHOWS LINE 22, WHICH IS THE VERY DIFFICULT PROBLEM OF THE 16.7 BILLION IN TAXABLE VALUES, THAT PRODUCES A NO NEW REVENUE OF 70.4 MILLION. THEN IF YOU GO TO THE VATRE THAT PRODUCES 74.7 MILLION, THAT'S PREVIOUS THE TAX CEILINGS.
IF YOU TAKE THE TAX CEILINGS AND YOU ADD THOSE BACK IN, THAT'S ROUGHLY 10.2 MILLION AND YOU'RE GOING TO BE AT THE NO NEW REVENUE RATE, YOU KNOW, 80.6 ROUGHLY. AND THAT'S THE PROJECTION.
SO WHAT WE WOULD THEN DO IF WE COULD AGREE LIKE, YEAH, WE'RE LOOKING AT BRINGING IN $80 MILLION CONSERVATIVELY FOR THE YEAR ON ALL PROPERTY TAX AT THE NO NEW REVENUE RATE, THEN WE WOULD BACK OUT OUR I&S SIDE FOR ALL OF OUR DEBT SERVICE.
THAT WOULD GIVE US THE AMOUNT THAT WE WOULD HAVE IN THE GENERAL FUND FOLLOW.
SO IF I COULD WORK A MATH PROBLEM WITH ME, MR. FREEMAN, TELL ME WHERE MY MATH IS WRONG. SO IF WE IF WE SAID 57.1 MILLION WAS THE TOTAL OF EXPECTED M AND O ON THE NO NEW REVENUE RATE. ARE YOU GOING OFF HER SHEET? NO, I'M GOING ON YOUR SHEET. SO BACK TO PAGE SEVEN THAT THAT 57.1 MILLION IS WHAT YOU'RE TELLING ME I WOULD HAVE TO WORK WITH ON M AND O ON THE NO NO NEW REVENUE RATE. OKAY. SO NO NEW REVENUE. YOU'RE SAYING IF WE PASS THAT AFTER WE FACTOR EVERYTHING AND WE TAKE OUT FOR TIRZ AGAIN WE'D END UP WITH 57 MILLION, RIGHT? PLUS, THEN WE WOULD ADD BACK IN OUR DEBT SERVICE.
AND I BELIEVE THE DEBT SERVICE HAS BEEN STATED AS 20.903.
SO WE TAKE 21 MILLION, ADD IT TO 57 MILLION, RIGHT? 78 MILLION VERSUS WHAT OUR PROJECTIONS ARE OF 82.3 FOR THIS YEAR.
WHERE, ARE YOU GETTING OUR PROJECTED NUMBERS FOR THIS YEAR? FROM HER SECOND WORKSHEET.
OH CITY OF AMARILLO TAX ESTIMATES HERE. OH SHE DIDN'T GIVE US THAT ONE.
OH I'M SORRY. GO TO THE FRONT PAGE. CITY OF AMARILLO.
CURRENT LEVY. SO ONCE AGAIN, YOU'VE GOT A YOU GOT TO TAKE THAT 82.3 MILLION TOTAL AND FACTOR IN YOUR 98.5% COLLECTION RATE. AND I JUST WANT TO MAKE SURE WE'RE ADDING IT UP RIGHT.
SO I'M UNDERSTANDING THAT THE M AND O NO NEW REVENUE RATE SHOULD BE AROUND $60 MILLION.
IF YOU GO TO YOUR BUDGET WORKBOOK, YOU HAVE 61.9 BUDGETED.
IS THAT RIGHT? FREEMAN. CURRENT BUDGET. AND THAT'S YOUR THAT'S YOUR VATRE, WHICH IS ACCORDING TO WHAT YOU GUYS PRESENTED LAST $700,000 ADDITIONAL FROM THE, THE NO NEW REVENUE RATE THE WAY I NOW UNDERSTAND IT, THERE'S A $700,000 DIFFERENCE IN PASSING THE NO NEW REVENUE RATE FROM PASSING THE VATRE, RIGHT? CORRECT. SO YOU'VE GOT 61.9 IN YOUR BUDGET WORKBOOK AT THE VATRE, YOU WOULD BE PROJECTING IN MY BUDGET ROUGHLY 61.2 AT THE NO NEW REVENUE RATE. BASED ON THE NEW CALCULATION YOU JUST RAN.
YEAH, I'M JUST TAKING THE 700,000. SO I'M JUST LOOKING AT WHAT YOU'VE PRESENTED.
YOU GUYS HAVE PRESENTED IN THE BUDGET. WE WERE SHOWING 61.3 MILLION.
I APOLOGIZE. SO NOT 61.9 RIGHT. SO 60.5 MILLION WHICH IS RIGHT IN LINE WITH WHERE I UNDERSTAND WE'RE GOING TO LAND IF YOU RUN HER NUMBERS. AND THESE ARE PROJECTIONS. SO, YOU KNOW, CHRISTINA MCMURRAY NOT RESPONSIBLE FOR WHAT PEOPLE DO AND DON'T PAY.
[00:55:04]
AND WE STILL NEED TO FACTOR CONSERVATIVELY. RIGHT.BUT BUT THERE'S A A $3.5 MILLION DIFFERENCE HERE, ROUGHLY.
LET'S CALL IT A $3 MILLION DIFFERENCE. 1.2 OF IT, I BELIEVE, IS WHEN WE'RE DEDUCTING THE TIRZ AFTER IT'S ALREADY BEEN FACTORED IN THE CALCULATION. SO I WOULD SAY WE COULD LOOK AT THAT 1.2 MILLION.
MAYBE THAT DOESN'T NEED TO BE A LINE ITEM DEDUCTION.
JUST TO UPDATE YOU THE TIRZ IS WHAT THE CITY OF AMARILLO PAYS INTO TIRZ SO THAT HAS TO BE REMOVED FROM WHAT WE'LL GET AS REVENUE. SO WE HAVE DIFFERENT ENTITIES PAINTING TO TIRZ THE NUMBER WE SHOW IS WHAT WE PAY INTO TIRZ, WHICH REDUCES WHAT WE GET FOR AND I DON'T WANT TO MUDDY THE WATER WITH EXPENDITURES.
SO IN IN CALCULATING OUR TOTAL REVENUES, LET ME NOT BRING IN EXPENDITURES YET FOR LIKE DEBT SERVICE OR PAYING TIRZ OR POLICE AND FIRE. BUT WE DO HAVE TO BRING IN TIRZ BECAUSE WE LOSE THAT REVENUE.
SINCE WE DON'T, WE HAVE TO PAY INTO THE TIRZ PROGRAM OURSELVES.
OKAY. CAN WE COME BACK TO THAT ONE? BECAUSE I KNOW I'M JUST ASKING THE QUESTION OF DOES THE 1.2 MILLION NEED TO BE A LINE ITEM DEDUCTION? I KNOW, I KNOW YOU'RE ESTABLISHING THAT YOU BELIEVE YES BASED ON THE FACT THAT IT'S AN EXPENDITURE.
BUT RIGHT NOW YOU'RE SHOWING ME MY REVENUES. EXPENDITURE IS A REDUCTION IN REVENUE.
OKAY, SO WE DON'T PAY INTO THE TIRZ, THE TIRZ IS PAID INTO FROM THE TAX ASSESSOR.
IT GETS DISTRIBUTED BY THE CITY OF AMARILLO AND THEN WE BUILD THE OTHER PARTNERS FOR THEIR SHARE OF IT. OKAY, SO IF THAT'S THE CASE, IT'S BEING DEDUCTED IN OUR CALCULATIONS FOR OUR NO NEW REVENUE RATE.
THEY TAX THAT SEPARATE. THEY PUT IT BACK IN. SO YOU'RE SAYING IT'S UP IN THE 79.2 MILLION TOTAL.
RIGHT THERE IF YOU LOOK AT YOUR PAGE ON PAGE SEVEN, UP AT THE TOP.
TOTAL TAXES, YOU'RE SAYING 79.2 AT THE NO NEW REVENUE RATE.
I'M LEARNING HERE. BUT THEN THE 70.2 MILLION IS STILL BELOW WHAT YOU KNOW.
I MEAN I GUESS THAT THAT'S PROBABLY THE THE PERCENTAGE THE 98.5%.
ONE THING I LEARNED MEETING WITH WITH MISS MCMURRAY AND HER ASSISTANT SIDNEY, I THINK WHAT HER NAME I MEAN, THERE'S THERE'S A VALUABLE ASSET THERE. SO I, WE ALL, WE ALL THEY GAVE US WAS THIS SHEET THERE OF OF.
SOUNDS LIKE YOU HAVE SOME MORE INFORMATION THERE. YEAH. I'LL HAND IT TO YOU. CAN I LOOK AT THAT? SURE. IT'S ESTIMATED TAX AND YOU CAN SEE PREVIOUS YEAR. SO WHEN GETTING THE CALCULATION RIGHT THERE'S ANOTHER SIDE OF THIS THAT I WOULD LIKE TO ASK WHY MR. PATH GOES THROUGH THAT.
SO ON LOOKING AT OUR DEBT SERVICE, THE 20.9 MILLION, THAT'S THE DEBT THAT'S PAID FOR ALL OF THOSE ITEMS OUT OF THE DEBT FUND. RIGHT. AND SO DO YOU GUYS HAVE THE BUDGET, LIKE WHERE YOU COULD PULL THAT UP? AND I DON'T KNOW IF WE COULD PUT IT ON THE SCREEN. YEAH.
CAN WE GET IT ON THE SCREEN POTENTIALLY, MRS. COLLINS. WHEN WE GET THERE. I DON'T HAVE PAGE NUMBERS ON MINE. BUT IT'S BACK AT THE VERY BACK.
SO IT'S LIKE A THOUSAND PAGE 1034 SOMEWHERE IN THERE.
SO YOU GUYS SPOKE WITH BOND COUNCIL. SO DID I, MR. ADAMS. I THINK HE, HE GAVE YOU THE SAME DOCUMENT HE GAVE ME.
AND SO WHAT I DID WAS I JUST CALLED BOND COUNCIL AND ASKED HIM, YOU KNOW, WHAT'S THE TOTAL AMOUNT WE'RE GOING TO PAY YOU? AND HE GAVE ME THOSE AMOUNTS. BUT THEN I HAD TO GO THROUGH AND BREAK THEM OUT SO THAT THEY WERE BROKEN OUT LIKE OUR BUDGET.
SO YOU HAVE GENERAL OBLIGATION BONDS THAT MAKE UP THE 20.9.
AND THEN YOU HAVE, YOU KNOW, OTHER DEBT SERVICE FROM LIKE PIDS AND ALL THAT.
SO TO MAKE SURE I'M LOOKING AT THE NUMBERS CORRECTLY HE BROKE OUT HIS WORKSHEET.
[01:00:02]
SO GRAYSON, YOU GUYS PROBABLY SAW THIS ONE AS WELL.HE EMAILED THIS TO YOU. AND HERE I'LL JUMP TO THE BOTTOM LINE HERE.
THAT WAS NOT SO. THERE'S ONE ITEM OVER HERE LIKE THE SECOND TO LAST PAGE OF YOUR BUDGET.
MAYBE IT'S THIRD TO FOURTH TO LAST PAGE FLEET SERVICES FUND.
SO THE FLEET SERVICES FUND HAS SERIES 2026 IN IT FOR 1.184 AND 622,000. THOSE ARE THE DEBT PAYMENTS ON SERIES 2022 B.
IF YOU LOOK AT THE PREVIOUS PAGE, THOSE TWO AMOUNTS ARE ALSO ENTERED IN OUR GENERAL OBLIGATION BOND DEBT. SO SERIES 2026 SAME AMOUNT 1.184. AND THEN DOWN THERE SERIES 2022B ERP MONIES 622,000. SO I'M CURIOUS IF WE'VE BOOKED THEM IN TWO DIFFERENT PLACES.
AND MISS KATRINA, IS THERE A DOUBLE PAYMENT? LIKE, DO WE HAVE TO PAY THAT TWICE? NO, YOU DON'T PAY IT TWICE. YOU PAY FOR DIFFERENT PURPOSES.
OKAY. SO IT'S CODED DIFFERENT PER THE PIECE. OKAY.
SO SO WHAT BOND COUNCIL SHOWS. AND THEY WILL SHOW A WHOLE ISSUANCE.
NOT NECESSARILY PER PURPOSE. YEAH. SO BOND COUNCIL DOESN'T SHOW THAT IN TWO DIFFERENT AREAS.
SHOULD ADD TO THE 20.9. YEAH. SO IT'S NOT INCLUDED IN HIS TOTAL.
SO BOND COUNCIL'S TOTAL PAYMENT IS 19,700,000.
WE ARE STATING THE TOTAL PAYMENT IS 20.9 $1.2 MILLION DIFFERENCE.
SO WHEN I ASKED BOND COUNCIL, DO THOSE TWO NOTES BELONG HERE ON MY GENERAL OBLIGATION BOND DEBT, HE SAID, NO, THEY'RE EXCLUDED IN THAT 19.7 MILLION.
SO CAN WE GET CLARIFICATION FROM BOND COUNCIL? MAYBE IT IS LIKE YOU'RE SAYING, KATRINA, THERE'S ANOTHER PAYMENT ON THAT SERIES AND IT COMES FROM BOTH, YOU KNOW, A LOT A LOT LIKE YOU DID CITY HALL.
SO CITY HALL'S PAID HALF OUT OF WHAT, SEWER AND WATER HALF OUT OF GO.
SO YOU SEE THAT 2.5 DOUBLE RIGHT. BUT IT'S A $5 MILLION PAYMENT.
YOU'RE TELLING ME THIS PAYMENT IS 1.184 PLUS 1.184 FOR THAT ONE NOTE, RIGHT? OKAY. AND IF DIFFERENT PURPOSE. YEAH. AND IF THAT'S THE CASE, THEN THEN WE I'M GOOD WITH MOVING FORWARD.
CAN WE GET WITH BOND COUNCIL AND CHECK THAT BECAUSE THAT'S NOT WHAT IS WRITTEN ON THAT.
AND, AND HE GIVES OUR TOTAL OVER THERE. IT SAYS ESTIMATED TAX SUPPORTED DEBT 19.776.
AND HE ALSO HAS THE TOTAL OF 18.273 PREVIOUS YEAR.
SO EVERY NUMBER THAT I'M LOOKING AT FROM YOU GUYS ADDS UP WITH THAT.
BUT THEN FLEET SERVICES WAS WAS NOT ADDRESSED THERE.
SO I JUST WOULD NEED TO SEE IF THERE'S A FLEET SERVICES DEBT PORTION FOR THAT.
I HAD ASKED EARLIER FOR THE TRANSFERS IN IF YOU GO BACK TO WHENEVER WE GET THAT UP.
WHEN YOU LOOK AT THE BUDGET, YOU'VE GOT YOUR TOTAL REVENUES AND IT'S IT SHOWS TRANSFERS. 8.013 MILLION ESTIMATED. AND THEN IN PROPOSED 277.990.
CAN WE GET A BREAKDOWN ON WHAT THOSE TRANSFERS ARE AND THE THE REASON BEING ON THAT WHEN WHEN YOU PULL THE PIDS, THERE'S TEN ISSUANCES, THE SOLID WASTE, THE GOLF COURSE TEARS ONE FLEET AND AIRPORT TOTAL TAX SUPPORTED DEBT WAS 4.5 MILLION. AND THEN I NOTICED WE'RE WE'RE ESTIMATING TRANSFERS OF 7.9 MILLION.
[01:05:03]
SO WHEN I ASKED MR. ADAMS, I JUST SAID, IS THAT A GOOD THING TO MAYBE MOVE MORE MONEY INTO THAT ACCOUNT, BECAUSE THAT WOULD GIVE US A HIGHER RESERVE OR AN ADDITIONAL FUND BALANCE AT THE END.HE SAID NO, HE'D RATHER SEE IT IN IN THE GENERAL FUND ACCOUNT.
SO I WOULD LIKE TO KNOW IF THE 7.9 IS EXACT AMOUNT FOR DEBT SERVICE AND WHAT ALL THAT IS.
SO IT'S JUST A TRANSFER. AND THE WATER SEWER IS STILL RESPONSIBLE FOR WATER SEWER.
RIGHT. IT'S JUST MOVING IT TO EVERYTHING TO BE PAID FROM THE EXACT SAME PLACE.
AND I'M SURE THE NUMBERS PROBABLY ADD UP. I JUST CAN'T SEE THEM.
SURE. AND THEN ON THAT, YOU KNOW, WE WE HAVE A LITTLE BIT MORE MONEY.
I GUESS AS PROPOSED, FROM WHAT WE'RE WHAT WE'RE PAYING OUT, IF THAT WAS THE CASE.
ON THE [INAUDIBLE]. YES. THEN THE GOAL WOULD BE TO TREAT THE N AND R RATE OF, LET'S SAY IT'S 79 MILLION FOR N AND R LESS THE AMOUNT OF THE 20.9 OR THE 19.7.
NOW HE SHOWS THE 19.7 GENERAL OBLIGATION. SO CAN YOU TELL ME WHY WE WOULD BACK OFF THE 20.9.
OKAY. YEAH. AND I KNOW I'VE GOT THE CITY HALL PIECE FOR THE 2.5 INCLUDED IN THE 19.776.
SO ESSENTIALLY COUNCIL, WHAT I'M HOPING TO DO HERE IS TO JUST MAXIMIZE OUR EFFORTS WITH THE NO NEW REVENUE RATE IS JUST A CONSIDERATION, BUT WE NEED TO KNOW IS THAT NO NEW REVENUE RATE GOING TO BRING IN 60 PLUS MILLION, OR IS THAT NO NEW REVENUE RATE GOING TO BRING IN 57 MILLION? THERE'S A 3,000,00 3 POINT SOMETHING MILLION DOLLAR DIFFERENCE THERE.
AND I'M SURE IF WE LET THESE GUYS WORK ON THIS BEFORE OUR MEETING TODAY AT THREE, WE COULD WE COULD PUT THAT TOGETHER AND KNOW BECAUSE I THINK THE WAY YOU'RE PRESENTING IT TO ME MAKES SENSE IF I FACTOR IN MY EXPENDITURE SIDE, BUT I'M JUST TRYING TO GET REVENUES.
I STILL HAVEN'T LANDED ON THE REVENUES YET. SO IF I JUST READ WHAT YOU'VE PRODUCED HERE, I WOULD FEEL LIKE IF I VOTED FOR THE NO NEW REVENUE RATE, IT'S ONLY GOING TO REVENUE 20.9 MILLION FOR I AND S, AND IT'S ONLY GOING TO REVENUE 57.1 MILLION FOR ME.
AND THEN THAT'S GOING TO LEAVE ME 4 MILLION SHORT IN MY ASKS THAT WE'VE GOT PRESENTED.
SO IF IT'S NOT THAT WAY AND IT IS 60.5, WE SKIP UP $3 MILLION THERE.
AND THEN JUST BEING HOPEFUL. MAYBE WE'VE GOT TRANSFERS BECAUSE THOSE ARE MONIES THAT COME IN IN M AND O, PROPERTY TAXES OR FEES. THEN THEY'RE BEING TRANSFERRED OVER TO THE DEBT SERVICE FUND AND PAID OUT TO INS.
BUT IF IF THEY'RE NOT FACTORED IN THE 20.9, THEY'RE STILL DEBTS THAT WE HAVE TO SATISFY.
SO I WOULD LOVE IT IF THERE WERE A COUPLE MILLION DOLLARS THAT WE DIDN'T HAVE TO TRANSFER OVER.
SO I'D BE LOOKING FOR THE EXACT AMOUNTS TO LINE UP THAT TOTAL, THAT 7.990685.
IS THAT SOMETHING WE COULD GET BEFORE OUR 3:00? THAT'S GREAT. ON THE REVENUE SIDE.
I KNOW WE'VE ASKED IT, BUT JUST TO SUMMARIZE IT WANT TO KNOW IF TIRZ IS PAID, DEDUCTED TO BE FACTORED, AND THEN PAID LIKE WHY WOULD IT? WHY WOULD IT BE DEDUCTED AND THEN PAID? RIGHT. WE'LL DOUBLE CHECK THAT. OKAY. IS THERE ANYTHING I KNOW I GOT A FEW CONFUSING LOOKS, SO I JUST WANT TO MAKE SURE THAT THAT I'M NOT CONFUSING ANYBODY IN LIKE THOSE FOUR ITEMS THAT I'M LOOKING FOR.
OH, GOOD. I THINK WE'RE GOOD. OKAY. SUPER. COUNCIL.
Y'ALL GOT ANYTHING ELSE? NO. COUNCILMAN REID YOU GOOD OVER THERE.
OKAY, MR. FREEMAN, WHAT ELSE YOU GOT TO GO OVER? NOTHING ELSE ON OUR END. WE ARE, GRAYSON STEPPED OUT TO TAKE A PHONE CALL.
[01:10:01]
BUT WE'RE DOUBLE CHECKING OUR NUMBERS. SPLIT THAT BETWEEN O AND M AND I&S BECAUSE THEY DON'T DO IT FOR US AS PART OF THEIR RATE.SO WE THINK THAT MAY ALSO BE PART OF THE THE DIFFERENCE IN SOME OF THE CALCULATIONS.
SO WE'RE, WE'RE DOUBLE CHECKING THAT AS WELL.
THAT MAY FACTOR INTO, INTO ALL OF THIS. YEAH.
ESSENTIALLY, YOU KNOW, BOTTOM LINE, IT'S HARD TO COME IN AND SAY, WELL, WE EXPECTED TO COLLECT $82 MILLION THIS YEAR IN TAXES AND THAT'S WHERE WE SHOULD LAND, RIGHT? AND WE COLLECT MOST ALL OF THEM.
THEN YOU LOOK DOWN AT YOUR, YOUR PAGE AND IT'S 80.4 MILLION AT THE AT THE NO NEW REVENUE RATE.
SO LIKE, HOW ARE WE TAKING THAT $2 MILLION DEDUCT RIGHT OFF THE FRONT END? AND IT WAS EXPLAINED TO ME, WELL, THAT'S SALES TAX CALCULATION WILL KNOW THAT'S JUST ON THE VATRE.
RIGHT. THEN IT'S WILL THESE TAX CEILINGS KNOW THOSE ALL COME BACK IN SEPARATE.
YEAH. AND THEN I THINK REALLY WHERE YOU GET TO, IT'S LIKE, WELL, IT'S THE TIRZ.
WELL THAT'S PART OF THAT 80.4 MILLION. WE ALREADY TOOK THAT OUT IN THE PREVIOUS YEAR.
SO I MEAN, YOU WOULDN'T HAVE A $2 MILLION DEDUCT IN TIRZ OR 1.2 MILLION DOWN HERE.
RIGHT. I MEAN, WE'RE SAYING WE'RE GOING TO PAY TIRZ THE 1.2 MILLION.
I MEAN, THEY'RE THE SAME EXPENDITURES YEAR AFTER YEAR.
SO I REALLY APPRECIATE Y'ALL DIGGING INTO THAT AND WOULD WOULD LIKE TO LOOK THROUGH THAT.
COUNCILMAN. WHAT, WHERE ARE WE ON WHERE WE'RE GOING TO FINISH ON SALES TAX WITH THE LATEST? I KNOW THAT WAS SOMETHING THAT WE WERE LOOKING AT AND MODIFYING, BUT AS THE BUDGET STANDS RIGHT NOW, WHAT'S OUR, WHAT'S OUR TOTAL REVENUE AMOUNT ESTIMATED TO FINISH IN 25 AND 25-26.
JUST PULL THAT AND WE'LL FIND OUT TOMORROW HOW OUR LAST PAYMENT LOOKS.
SO THAT MAY FACTOR IN WITH WHAT WE BRING BACK TO YOU ON THE 22ND.
BUT WE'VE GOT OUR CLOSEST ESTIMATE.
ONLY OTHER THING THAT I THINK WOULD BE REALLY GOOD TO HEAR TODAY, BASED ON THE THE TWO DIFFERENCES, THERE'S A $4.3 MILLION DIFFERENCE THAT EVERYBODY AGREES WITH, RIGHT? THE DIFFERENCE FROM NO NEW REVENUE TO VATRE. OKAY.
THAT WAS OUR ORIGINAL CALCULATION. OKAY, SO THAT IS NOT CORRECT.
CORRECT. 4.30 MY. MY SCENARIO SPREADSHEET. IT SHOULD BE 4.2 MILLION.
BUT TO BE CLEAR, THE DIFFERENCE IS 4.1 MILLION RIGHT? IT'S NOT 700,000. BETWEEN THE TWO RATES. BETWEEN THE TWO RATES.
BETWEEN THE TWO RATES AS WE'VE CURRENTLY PRESENTED IT. YES.
OKAY. YEAH. SO I'M CURIOUS THOUGH, LIKE IF YOU FLIP OVER TO YOUR NEXT PAGE, PAGE EIGHT, YOU KNOW, YOU GO FROM THE 60.5 VATRE RATE. WHICH IF YOU GO TO PAGE EIGHT, LIKE, I THINK IF Y'ALL COULD BLOW THAT UP, IT SAYS IT EXACTLY THE WAY I'M SAYING IT.
THE VATRE RATE, IT'S SHOWING A REDUCTION FROM 61.2 PREVIOUS YEAR TO 60.5 IN THE PROPOSED.
BUT YOU'RE SAYING THAT'S THE VATRE RATE. 60.5.
YES. BUT IF YOU GO TO OUR OUR CURRENT PROJECTIONS, THAT'S WHAT WE'RE BRINGING IN CURRENTLY.
60.5. AND IF THERE'S A 4.1 POINT $2 MILLION DIFFERENCE, I SHOULD GO FROM 60.5 TO 64.5.
OH. THE FIRST COLUMNS ARE PROPOSED 61.2. AND YOUR PREVIOUS BUDGETS IS 60.5.
THAT'S THE AMOUNT THAT YOU'D HAVE TO CHARGE. WHATEVER THAT RATE IS.
DOESN'T MATTER IF IT'S 42 OR $0.43. IF THAT'S THE VATRE RATE IS HOW WE'RE SHOWING IT.
BUT NO NEW REVENUE. WE'RE SHOWING THE 57.1. BUT BUT AND THAT'S WHAT I'M SAYING.
THE THE THE MIDDLE COLUMN HERE SAYS 26 BUDGETED M AND O REVENUES AT $0.43.
[01:15:02]
THE NO NEW REVENUE RATE IS WHATEVER RATE FOR THE SAME PROPERTIES IN ORDER TO PRODUCE THAT SAME AMOUNT OF MONEY, 60.5 MILLION. RIGHT. THE VATRE RATE SHOULD BE FOUR POINT SOMETHING MILLION.ON TOP OF THAT. RIGHT. CAN CAN WE GET LIKE SOMETHING SOLID RIGHT HERE ON THAT? BECAUSE I, I THINK AS WE RUN SCENARIOS AND, AND YOU'VE DONE A, A DUE DILIGENCE IN BREAKING DOWN, HERE'S THE THINGS YOU'D HAVE TO GET RID OF. LIKE MAYBE NOT, YOU KNOW, I MEAN, THAT NO NEW REVENUE RATE WILL BRING IN 60.5 MILLION.
YES, MA'AM. I I'M SORRY. GO AHEAD. NO, NO. I'M DONE.
I JUST WANTED TO ADD THAT WHEN WE DID THE T&Z CALCULATIONS, THE RATE DOESN'T NECESSARILY TRANSLATE LEADING TO THAT SAME REVENUE LEVEL AS LAST YEAR'S. IT TRANSLATES INTO A LOWER REVENUE LEVEL, AND THAT'S WHAT WE TRY TO EXPLAIN.
BEFORE THAT, WE HAVE OTHER THINGS THAT COME INTO PLAY TO REDUCE THE REVENUE LEVEL AT THE AT THE NO NEW REVENUE RATE, SUCH AS THE REDUCED CERTIFIED VALUES AND THE.
WHY WOULD THAT RATE NOT BE ADJUSTED TO. I KNOW THE OTHER VARIABLES THERE.
RIGHT? NO, NO. WE UNDERSTAND THE OTHER VARIABLES.
AND I THINK THAT COMES DOWN TO THE DEFINITION OF THE NO NEW REVENUE. I DON'T THINK ANYBODY UNDERSTANDS THIS. AND I THINK WE ALL HAD A REVELATION LAST TIME OF, YOU KNOW, I GUESS IT CAN'T PRODUCE ANY ADDITIONAL REVENUE, BUT IT CAN CERTAINLY PRODUCE LESS REVENUE, I THINK IS WHAT WE GOT TO. AND I DON'T KNOW THAT THAT IS ACCURATE.
WHEN WE TALK TO CHRISTINA THAT SAID THAT THAT WAS THAT'S NOT ACCURATE.
WE'RE WE'RE DOUBLE CHECKING BECAUSE I REALLY THINK IT'S GOING TO COME DOWN TO OUR FROZEN TAXES AND HOW THAT SPLIT UP BETWEEN I AND S AND M AND O, AND THEN ALSO HOW MUCH WE ARE ALLOCATING FOR OUR I&S RATE, BECAUSE THE WAY THE $0.10 IS CALCULATED WAS BASED ON 16 MILLION DEBT SERVICE BECAUSE OF EXCESS DEBT COLLECTIONS. WE'RE STILL PLUGGING IN THE 20.9, WHICH WOULD BE A FEW MILLION MORE.
SO THAT'S WHAT WE'RE WE'RE TRIPLE CHECKING THAT NOW.
DO WE, DO WE HAVE A CALCULATOR THAT WE CAN PUT UP ON THE SCREEN? I DON'T KNOW IF WE HAVE THAT. I MEAN, IT'S SUPER NICE TO SEE THE MATH.
SO IF WE JUST TAKE WHAT CHRISTINA MCMURRAY HAS TO DO HER JOB RIGHT.
DO THOSE ADJUSTMENTS TO GET US TO THE 16.7 BILLION.
IF YOU ALL RUN THAT, JUST RUN 16.7 BILLION TIMES 0.421 PER 100.
SO TAKE TWO ZEROS OFF OF THE 16.7 BILLION AND YOU COME UP WITH 70.4 MILLION.
THAT'S OUR ACTUAL REVENUE AT THE NO NEW REVENUE RATE.
THEN YOU ADD IN THE TAX CEILINGS ON TOP OF THAT.
WE DON'T UNDERSTAND HOW YOU'RE GETTING TO 57 MILLION.
YOU ONLY GOT 20.9 MAXIMUM IN I&S, WHICH, YOU KNOW, COULD BE 19.7.
LET'S HOPE. RIGHT. MAYOR IF I COULD REAL QUICK.
I'VE BEEN LOOKING AT THIS AND COULD WE TAKE A BREAK REAL QUICK WHILE WE REGROUP THE TEAM REAL QUICK.
AND SO I'VE, I WANT TO EXPLORE MORE REAL QUICK AS A TEAM WHAT SHE GAVE YOU.
I'M GOOD TO TO IF YOU WANT WE COULD ADJOURN COME BACK AT ONE FOR EXACT.
I KNOW WE PUT IT ON THE AGENDA FOR A DISCUSSION ITEM.
AND SO SHE SAYS THAT'S WHAT SHE WAS RELAYING TO YOU ALL.
YEAH, WE WANT TO LOOK AT THAT. IF THERE'S MANY WAYS, THEN LET'S LOOK AT MORE THAN ONE.
YES. IF THERE'S MANY LEGAL WAYS TO DO THIS, TO ARRIVE AT THIS NUMBER, THEN WE WOULD LIKE OPTIONS.
BUT WHAT I WOULD LIKE TO DO, WE'LL HAVE MRS. MCMURRAY HERE AT THREE.
[01:20:01]
THAT WAY SHE CAN SPEAK TO IT AND AND WE WON'T BE INFERRING ANYTHING ON HER BEHALF.AND WITHOUT THAT $4 MILLION DIFFERENCE, HOW ARE WE TO TELL YOU WHAT TO KEEP AND WHAT TO LET GO? YEAH, YEAH. WELL, LET ME LET ME HAVE MY GIVE US ABOUT 30 MINUTES AND I CAN CIRCLE UP WITH YOU REAL QUICK AND WE CAN TALK.
SO LOVE IT. OKAY, COUNCIL. Y'ALL GOT ANYTHING ELSE BEFORE WE BREAK FOR LUNCH? MR. MCWILLIAMS, WE ARE CLOSING THIS MEETING, AND THEN WE'LL.
I DID, DID WE FIND OUT WHAT THE SALES TAX PROJECTION IS? 89 MILLION WITHOUT THE UPDATED SEPTEMBER NUMBERS.
SO WE'RE TRACKING, IT'S STILL GOING TO BE RIGHT AROUND 90 MILLION.
OH, AND SAY THAT AGAIN. THAT'S YOUR SALES TAX TAX FOR TODAY.
OKAY. AND WE'RE PROJECTING 3%. WE STARTED THE BUDGET.
WE WERE AT 87.5. AND SO SINCE THEN, I MEAN, IF IF WE DID NOT HAVE THIS EXTRA SALES TAX, HOW WERE WE GOING TO MAKE THIS BUDGET WORK AS IT IS? RIGHT. YEAH. RIGHT. THAT WAS GOING TO BE WE WOULD HAVE FIGURED OUT HOW TO DO WITHOUT SOME THINGS.
OKAY. THANK YOU. COUNCILMAN PRESCOTT, I SEE YOU.
JUST WANT TO DOUBLE CHECK BEFORE WE ADJOURN. IF YOU HAD ANYTHING YOU NEEDED. YOU'RE ON MUTE RIGHT NOW. I'M READING HIS LIPS. HE'S CHECKING WITH THE TURKISH GOVERNMENT.
HE SAYS HE SAID THUMBS UP. OKAY, LET'S GO AHEAD AND ADJOURN THE MEETING.
THANK YOU FOR PARTICIPATING. WE'LL COME BACK HERE AT ONE TO BEGIN OUR AFTERNOON. THANK YOU.
* This transcript was compiled from uncorrected Closed Captioning.