Aug 10, 2023 City Council Special Meeting

CITIZEN COMMENTS, PERIOD.

[I. Call Meeting to Order]

GOOD EVENING EVERYONE.

THE TIME IS 6:02 PM IT IS THURSDAY, AUGUST THE 10TH.

AND I'M GONNA CALL THIS SPECIAL CITY COUNCIL MEETING TO ORDER.

WOULD THE CITY SECRETARY PLEASE CALL THE ROLL MITCHELL? HERE, TOBIAS.

NEXT UP IS CITIZEN COMMENTS.

PERIOD.

IS THERE ANYONE WHO WISHES TO COME FORWARD AND SPEAK? SEEING NONE.

WE'RE GONNA CLOSE.

[1. Receive a presentation, hold a discussion, and provide direction to the City Manager regarding consideration of a defeasance option for a portion of the City's outstanding tax-supported bonds to manage property tax rate for Fiscal Year 2023-2024 and future years. ~ Perwez A. Moheet, CPA, Director of Finance]

IT'S NOW CLOSED.

UH, AGENDA ITEM NUMBER ONE, RECEIVE A PRESENTATION, HOLD DISCUSSION.

PROVIDE DIRECTION OF THE CITY MANAGER REGARDING CONSIDERATION OF A DEFIANCE OPTION FOR A PORTION OF THE CITY'S OUTSTANDING TAX SUPPORTED BONDS TO MANAGE PROPERTY TAX RATE FOR FISCAL YEAR 2023 AND 2024 IN FUTURE YEARS.

MR. MAHI, UH, MAYOR AND COUNCIL.

WE HAD A DISCUSSION AT THE LAST, UH, BUDGET SESSION ABOUT POTENTIALLY DEFE SOME OF THE DEBT AND THE IMPACT THAT WOULD HAVE ON THE TAX RATE AND HOW THAT WOULD WORK.

SO WE WANTED TO COME BACK WITH A DETAILED PRESENTATION TO YOU TO REVIEW, REVIEW ALL OF THESE, UH, MATTERS AND TALK ABOUT THE DIRECTION THE COUNCIL WANTED TO PROCEED WITH.

SO I'M GONNA ASK PERVEZ TO GET STARTED WITH THIS.

WE ALSO HAVE THE CITY'S FINANCIAL ADVISOR AND BOND COUNCIL HERE AS WELL, THAT THEY'LL BE, UH, ASSISTING WITH THE PRESENTATION.

MAYOR, MAYOR PROM COUNCIL MEMBERS.

GOOD EVENING.

FOR THE RECORD.

I'M PAVES MOHE CITY'S DIRECTOR OF FINANCE.

IF YOU RECALL, AT THE LAST BUDGET WORK SESSION ON JULY 29TH, WHEN WE PRESENTED THE CITY MANAGER'S PROPOSED BUDGET, WE ALSO PRESENTED THE CITY MANAGER'S PROPOSED PROPERTY TAX RATES.

AND DURING THE DELIBERATIONS, UH, CITY COUNCIL, WHEN WE WERE TALKING ABOUT PROPERTY TAX RATES, CITY COUNCIL REQUESTED THAT WE LOOK AT A FEASIBILITY OF KEEPING THE PROPERTY TAX RATE AT THE SAME LEVEL TO MANAGE THE PROPERTY TAX RATES.

SO YOU ASKED AND STAFF PUT TOGETHER INFORMATION AND BROUGHT IN EXPERTS WITH US THIS EVENING.

WE HAVE CITY ATTORNEY PAGE SCIENCE, WE HAVE THE CITY'S BOND COUNCIL, STEPHANIE LIEBE.

WE ALSO HAVE THE CITY'S FINANCIAL ADVISOR, MR. MARK MCCLINNEY.

SO WITH THAT, WHAT WE HAVE PLANNED FOR YOU TO, UH, THIS EVENING AS WE'LL GO OVER THE DEBT DEFIANCE OPTION TO MANAGE PROPERTY TAX RATE.

AND THIS WILL PRIMARILY BE COVERED BY OUR FINANCIAL ADVISOR, MIKE MARK MCCLINNEY, AND CITY MANAGERS AVAILABLE.

I'M AVAILABLE TO HELP HIM.

AND THEN WE'LL GO OVER THE TAX RATE IMPACT OF DEBT DFE.

I'LL PRIMARILY GO OVER THOSE SLIDES HERE.

AGAIN, YOU HAVE CITY MANAGER AVAILABLE AND THE CITY'S CITY'S TEAM OF EXPERTS AVAILABLE TO ANSWER ANY QUESTIONS.

AFTER WE GO WITH THE TAX RATE IMPACT OF DEBT DFE, WE WILL COVER THE LEGAL REVIEW AND ASSESSMENT OF THE DEBT DFE.

SO THAT WILL BE COVERED BY OUR CITY ATTORNEY AND OUR BOND COUNCIL.

PRIMARILY, THEY'LL REVIEW THE TAX CODE AND THE DEFE OPTION HU COMPLIES WITH THE TAX CODE.

THEN WE'LL COME BACK AND TALK ABOUT THE RESOLUTION TO RE RE RECORD YOUR VOTE.

THIS, IF YOU DECIDE TO MOVE FORWARD WITH THE DEBT DEFE OPTION, WE'LL TALK ABOUT APPROVING RESOLUTION TO RECORD YOUR VOTE.

THIS IS REQUIRED BY THE TAX CODE.

AND THEN FINALLY, WE'LL GO OVER THE CHANGES IN, IN THE NEXT STEPS.

THESE ARE PRIMARILY FOR NOTICES REQUIRED BY LAW AND THE DATES THAT HAVE WILL HAVE TO CHANGE TO ACCOMMODATE THE PROPERTY TAX RATE ADOPTION AND THE BUDGET ADOPTION.

SO WITH THAT, I'M GONNA TURN IT OVER TO MARK.

THANK YOU, EZ.

IT'S ALWAYS GOOD TO BE HERE.

MY NAME'S MARK MCCLINNEY.

I'M WITH SAMCO CAPITAL MARKETS.

UH, WE'RE IN A REALLY, AN INTERESTING TIME, UH, IN FAST GROWING TAXABLE VALUE AS WELL AS FAST GROWING POPULATION, ALONG WITH, UH, A BIG CAPITAL IMPROVEMENT PROGRAM THAT YOU HAVE TO MANAGE OVER THE NEXT 5, 6, 7 YEARS.

SO AS WE'VE STARTED THIS PROCESS, I'M GONNA TAKE US BACK PERHAPS A YEAR PRIOR TO OUR BOND ELECTION.

UM, WE WORKED WITH CITY COUNCIL AT THE TIME TO COME UP WITH WHAT WE THOUGHT WAS MANAGEABLE TO BORROW FINANCE AND HAVE A TAX RATE THAT WOULD BE ABLE TO PAY THAT DOWN, THAT THE CITIZENS COULD HANDLE AND ACCEPT, AND OBVIOUSLY HAVE AN AFFIRMATIVE VOTE OF THE PROJECT IF THAT'S WHAT THEY WERE WILLING TO TAKE.

[00:05:01]

SO AT THAT TIME, OUR TAX RATE AS IT IS RIGHT NOW, WAS 50.82 CENTS.

WE CAME UP WITH $294 MILLION OF NEW BONDS FOR VARIOUS ROAD PROJECTS THROUGHOUT THE CITY.

AND AT THE TIME WE SAID IT WOULD TAKE A TAX RATE OF UP TO APPROXIMATELY 59 99 UNDER 60 CENTS.

THAT WAS THE DIRECTION THAT CITY COUNCIL GAVE.

WE DON'T WANT TO BE ABOVE THAT, KEEP IT BELOW THAT.

AND SO WE WERE SUCCESSFULLY ABLE TO MANAGE IT AND PLAN FOR IT.

WELL, WHEN WE WERE GOING THROUGH THAT PROCESS, WE DIDN'T KNOW THE EXACT TIMING OF THE ISSUE AND WHEN THE MONEY WOULD BE NEEDED, AS WELL AS HOW QUICKLY WE WOULD CONTINUE TO GROW.

SO IT WAS A LOT OF PROJECTIONS.

AND AS WE STARTED THIS PROCESS, YOU YOU'LL REMEMBER, UM, IN JANUARY, WE SOLD THE FIRST SET OF BOMBS FOR THE ENGINEERING WORK TO GET THIS GOING.

, WE CAN'T MAKE THAT I N S TAX RATE GO HIGHER UNLESS YOU AS A CITY COUNCIL SAYS YES.

AND THAT WAS THE FIRST STEP.

WELL, WE HAD, WE BORROWED APPROXIMATELY $45 MILLION TO FUND.

WE DIDN'T KNOW AT THE TIME IS WHEN THE SECOND SET OF BORROWING WOULD OCCUR.

WE BELIEVE, AND I DON'T WANNA PUT WORDS IN ANYBODY'S MOUTH, BUT WE BELIEVE THE NEXT ISSUE WILL BE NEXT SUMMER, PERHAPS THIS, THIS TIME NEXT YEAR.

BUT THERE'S A POSSIBILITY THAT WE'RE NOT READY YET AND IT MIGHT BE A SECOND YEAR.

SO, AS WE STARTED THIS PROCESS OF WORKING THROUGH THE TAXES, WE HAVE A STATE LAW REQUIRES US TO DO IT IN A VERY SPECIFIC WAY.

AND IT'S THROUGH THESE TAX WORKSHEETS.

AND YOU SEPARATE YOUR M AND O TAX AND YOUR INTEREST IN SINKING FUND TAX, YOUR DEBT SERVICE TAX STATE LEGISLATURES GIVEN CITIES THE ABILITY TO GET 3.5% ON THEIR M AND O FROM THE PRIOR YEAR.

THERE'S SOME CAVEATS THERE.

NEW GROWTH IS TREATED DIFFERENTLY.

BUT BASICALLY IN AN OVERVIEW, YOU GET THREE AND A HALF.

YOU CAN GET UP TO THREE POINT HALF PERCENT MORE FOR YOUR GENERAL FUND WITHOUT, UH, HAVING REALLY ANY ISSUES WITH THE VOTERS.

IT'S CALLED THE, THE VOTER APPROVED M AND O RATE.

ON TOP OF THAT, YOU GET AN I N S TAX.

THE I N S PORTION OF YOUR TAX RATE CAN ONLY BE WHAT YOUR DEBT SERVICE IS FOR THE UPCOMING CURRENT YEAR.

SO PERVE WENT THROUGH THE CALCULATIONS AND THIS IS THE 10 OR 12 PAGE WORKSHEET THAT IS, IS STATUTORY.

I MEAN, IT'S PROVIDED TO US AND WE JUST FILL IN THE BLANKS.

AND WE CAME IN WITH A TAX RATE.

IT WAS ROUGHLY 47 CENTS.

AND THAT TOOK INTO ACCOUNT OUR NEW BOND ISSUE THAT WE SOLD LAST YEAR.

NOW, WHAT DROVE IT TO BE BELOW OUR CURRENT LEVELS? WELL, A SUPER FAST ACTUAL VALUE GROWTH FASTER THAN WE WERE PROJECTING.

'CAUSE WE DIDN'T, WE DIDN'T KNOW WHAT THE, A PHRASE VALUE WOULD BE THE FOLLOWING YEAR.

SO NOT A BAD THING.

TAX RATES DRIVEN DOWN.

WE'VE BORROWED MORE MONEY, NOT A BAD THING.

WELL, IF WE GO FORWARD, WE'RE GOING TO BE BORROWING AGAIN.

AND WE KNOW EVENTUALLY WE'RE GONNA BE PUSHING OUR WAY UP TO THAT 59 SET TAX RATE.

THAT'S WHAT OUR OVERALL, NOW IF OUR GROWTH CONTINUES AS FAST, WE MAY ONLY GET TO 55 CENTS, BUT EVENTUALLY WE'RE GOING TO BE UP ABOVE OUR CURRENT RATE.

SO THE, THE IDEA AND THE POSSIBILITY THAT DFE CAME UP.

SO THAT'S ALL BACKGROUND OF WHERE WE WERE AND HOW WE GOT TO, I GUESS YOUR PRIOR MEETING, YOUR, YOUR LAST COUNCIL MEETING AND THE DFE OPTION CAME UP AND, UH, WANTED TO START HAVING THAT ADDRESSED.

'CAUSE IT IS A POLICY DECISION.

SO THE FIRST QUESTION, WHAT IS A DEFIANCE? IT'S A LEGAL ACTION THAT TAKES BONDS THAT ARE DUE IN FUTURE YEARS AND MAKES THEM CURRENT.

CURRENT DEBT CAN BE TAXED.

YOU CAN SET YOUR I N S TAX RATE FOR CURRENT DEBT.

SO RIGHT NOW THE CALCULATION DOESN'T HAVE ANY FUTURE DEBT BECAUSE THERE'S NO LEGAL ACTION TAKEN BY CITY COUNCIL THAT SAID THAT FUTURE DEBT IS GONNA BE CURRENT DEBT.

AND THAT'S THE IMPORTANT THING.

WE MAKE IT CURRENT DEBT HAS TO BE A COUNCIL ACTION TO DO THAT.

SO WHAT WE'RE DOING IS WE'RE TAKING FUTURE DEBT.

THAT'S WHAT A ANCE IS, AND PAYING IT OFF.

NOW, IN MY MIND, AND PROBABLY THE EASIEST WAY TO COMPARE IT IS AT A HOME, IF YOU HAVE SOME EXTRA CASH AND MAKE AN EXTRA PAYMENT ON YOUR HOME MORTGAGE, IT'S KIND OF WHAT IT IS.

PAYING OFF A CAR A LITTLE FASTER, UM, YOU'RE PAYING DOWN DEBT.

UM, IT'S IMPORTANT.

REMEMBER IT, WE CAN'T, WE CITY COUNCIL, UH,

[00:10:01]

THAT MAKES SENSE.

UM, AND, AND BY THE WAY, THAT'S THE FIRST SLIDE.

SO THE SECOND SLIDE, WHY IS DEBT THE DFE OPTION BEING CONSIDERED BY THE CITY? WELL, WE'RE AT A 52, UM, 50.8 0.51 CENT TAX RATE.

RIGHT NOW IT'S GOOD TALK, MOVE DOWN UNDER THE CALCULATIONS TO ROUGHLY 47 CENTS.

WE KNOW AS YOU ISSUE MORE BONDS, IT'S GOING UP ABOVE 50 82.

SO THE THOUGHT PERHAPS YOU MIGHT AS A COUNCIL, WANT TO KEEP THE TAX RATE THE SAME BY PAYING DOWN FUTURE DEBT, WHICH DOES SEVERAL THINGS.

IT ELIMINATES FUTURE INTEREST.

JUST LIKE YOUR HOME MORTGAGE, YOU PAY SOMETHING OFF, YOU PAY LESS INTEREST.

IT HELPS BUILD CAPACITY FOR OTHER BONDS BECAUSE YOU PAY FUTURE BONDS OFF AND NOW YOU HAVE ROOM FOR FUTURE BONDS.

IT WILL MA IT WILL SLIGHTLY MINIMIZE THE FUTURE I N S TAX RATE.

THAT WOULD BE REQUIRED BECAUSE YOU PAID THAT DEBT.

SO YOUR IN THEORY THE DEFENDANT, YOU'D LIFT THE I N SS TAX RATE NOW TO LOWER IT LATER.

AGAIN, THAT'S ALL A POLICY DECISION.

IT DOES ELIMINATE SOME INTEREST.

SO IF, SO, UH, PAGE NUMBERS ARE ON THIS.

UM, IF PAID SIX, THERE'S COST TO DO IT AND IT'S ROUGHLY $25,000 TO GET IT DONE.

BUT YOU WILL SAVE, BECAUSE WE ELIMINATE INTEREST.

51,000 OF INTEREST IN YEAR ONE AND $715,000 OF INTEREST OVER THE LIFE.

SO COST IT COVERED BY THE SAVINGS.

THE, THE, THE AMOUNT THAT WE DETERMINED AND IT WAS BACK AND FORTH AND TOOK A LOT OF REITERATIONS TO GET IT, HOW MUCH WE COULD PAY WAS 2,345,000.

SO THAT NUMBER CAME ABOUT BY SAYING, OKAY, WE KNOW WHAT THE M AND O PART OF THE TAX RATE IS UNDER THE, UH, VOTER APPROVED RATE FOR M AND O.

WE KNOW WHAT OUR CURRENT TAX RATE IS, 50 82.

SO THAT DIFFERENCE IS WHAT WE CAN HAVE.

WELL YOU REMEMBER WE, THE, THE TAX RATE THAT CAME OUT EARLY WAS 47 CENTS.

SO BASICALLY WE HAD 3 CENTS THAT WE COULD USE TO PAY DOWN DEBT AND THAT 3 CENTS WOULD ALLOW US TO PAY OFF EARLY 2,345,000 BUCKS.

SO ON PAGE EIGHT, IF WE DO THIS, WHAT'S THE RESULT GOING FORWARD? WELL, AS I SAID, IT WILL GIVE YOU MORE CAPACITY.

THAT CAPACITY WOULD NEED TO BE FILLED WITH A BOND ISSUE NEXT YEAR BECAUSE WE'VE PUSHED OUR BOND PAYMENTS UP.

NOW IF WE ARE NOT READY TO BORROW AND NO ONE WANTS TO BORROW MONEY, UNLESS YOU'RE READY TO GO TO CONSTRUCTION, WE DON'T WANT YOU TO BORROW AND LEAVE IT IN THE BANK PAYING INTEREST AND THEN SIT ON IT FOR TWO YEARS AND THEN TRY TO TRY TO SPEND IT.

SO IF YOU HAD A PROJECT NEXT YEAR, THE NEW BONDS WOULD COME IN AND TAKE THAT PLACE AND WE WOULD BE SHOOTING PERHAPS FOR THAT 50.82 CENTS.

MAYBE AT THAT POINT IT GOES TO 51 OR 52.

SOME OF IT WILL DEPEND, A LOT OF IT WILL DEPEND ON HOW MUCH YOU NEED ON THAT FIRST TRAN OR THE SECOND TRANCHE.

WE JUST DID THE FIRST.

NOW WHAT HAPPENS IF WE DON'T NEED IT FOR ANOTHER YEAR? THAT BOND.

SO WE DON'T WANT TO BORROW.

WELL, YOU WOULD BE BACK IN THIS EXACT SAME SPOT SAYING WE WANTED TO THESE BONDS TO BUILD MORE CAPACITY IN THE FUTURE BECAUSE WE KNOW THOSE BONDS ARE COMING NOW, INSTEAD OF IT BEING 2 MILLION 3 45 BECAUSE YOU GREW ANOTHER 15% TAXABLE VALUE, WE MAY BE GRABBING FIVE OR $6 MILLION TO KEEP THAT TAX RATE AT 50 82.

YES MA'AM.

JUST A QUICK QUESTION, SINCE WE ARE TALKING ABOUT THE POSSIBLY POSSIBILITY OF DOING THIS FOR THE, FOR NEXT YEAR ONLY , BUT WE ARE TALKING IN HERE ABOUT AN INTEREST.

SO WHEN YOU ARE SAYING THE INTEREST SAVINGS WILL BE ABOUT 715,000, THAT IS JUST FOR NEXT YEAR? NO.

THAT IN YEAR ONE, THERE'S A GREAT QUESTION.

IN YEAR ONE IT'S 51,000.

NEXT YEAR, RIGHT, THAT'S THE COMMITMENT OR NOT NO.

SO THAT'S BASICALLY WHAT WE'RE SAVING IN YEAR ONE.

BUT BECAUSE WE ARE DOING THIS EPHE JUST FOR

[00:15:01]

YOUR, YOUR COMMITMENT IS ONLY ONE YEAR, BUT WE'RE PAYING OFF $2,345,000.

SO ALL OF THE INTEREST ASSOCIATED WITH THAT 2,000,345 GOES AWAY.

THE BENEFIT FOR YEAR ONE IS 51,000, BUT IT'S EVERY YEAR UNTIL THOSE 2,000,345 ARE GONE.

THEY'RE GONE.

BUT THEY'RE, IT, YOU KNOW, WE'RE TAKING 'EM OUT FROM 10 YEARS AWAY.

SO THE INTEREST ON 10 YEARS AND NINE YEARS AND EIGHT YEARS AND SEVEN YEARS AND SO ON, THAT'S A BENEFIT FOR THOSE NEXT 10 YEARS.

AND THEN HAVE WE ANALYZED, WHAT EXACTLY IS IT? WHAT DO WE OWE THAT HAS THE HIGHEST INTEREST? THAT THAT'S WHAT WE WILL BE PAYING THAT UH, WE HAVE TWO THINGS.

WE HAVE, THEY HAVE TO BE CALLABLE, WE HAVE TO BE ABLE TO TAKE THEM FROM THE INVESTOR.

SO NOW WE'RE LIMITED TO THE 2020, I'M SORRY, THE 20 20 13 BOND ISSUE.

'CAUSE THOSE ARE THE ONES THAT ARE TAKE, WE CAN TAKE FROM THE INVESTOR, THE 20 THIRTEENS AND THE 20 FOURTEENS.

THEY ARE NOT NECESSARILY THE BONDS WITH THE HIGHEST INTEREST RATE, BUT THEY'RE THE ONES THAT HAVE THE, THE POWER.

WE AS A CITY HAVE THE POWER TO TAKE THEM FROM THE INVESTOR WITHOUT A PENALTY.

OH, I SEE.

WE HAVE TO HAVE THE ABILITY TO GET THEM FROM THE INVESTOR AND WE DON'T WANT TO HAVE TO PAY A PENALTY.

SO BASICALLY IF WE WERE TO DE IF WE WERE TO DECIDE TO DO THIS, THAT'S EXACTLY WHAT WE WOULD BE PAYING.

SO DOES THAT HAVE TO DO WITH IT BEING WITHIN A CERTAIN AMOUNT OF YEARS, WHICH IS LIKE 10 AND A HALF YEARS, IT CAN'T GO PAST THAT.

SO IF EVEN IF WE HAVE AN OLDER BOND, WE'RE NOT ABLE TO PAY THAT DOWN MM-HMM.

, IS THAT CORRECT? UH, NO.

THAT THEY, THEY TYPICALLY, AND EVERY, EVERY BOND ISSUE HAS A LITTLE BIT OF DIFFERENCES.

BUT TYPICALLY WHEN YOU SELL BONDS, THEY'RE NOT CALLABLE.

WE DON'T HAVE THE RIGHT TO TAKE 'EM FROM THE INVESTOR FOR NINE OR 10 YEARS.

I WAS JUST TALKING ABOUT FOR TAX PURPOSES.

IT, IT IS SPENDING DOWN, FOR TAX PURPOSE, WE HAVE TO SPEND THE BOND PROCEEDS IN A CERTAIN AMOUNT OF TIME.

BUT THE CALL DATE IS SOMETHING THAT WHEN WE SOLD THE BONDS, WE SAID YOU AS THE BOND HOLDER, MERRILL LYNCH, YOU BOUGHT THESE, WE WON'T TAKE THEM FROM YOU UNTIL 10 YEARS FROM TODAY.

THAT WAY THEY'RE WILLING TO GIVE US A BETTER INTEREST RATE BECAUSE IF YOU COULD TAKE THEM, IF YOU COULD SELL 'EM TOMORROW AND YOU HAD TAKEN 'EM FROM THEM AT ONE YEAR FROM NOW, THEY'RE GONNA CHARGE YOU A LOT HIGHER INTEREST RATE.

SO THEN ARE THERE ANY OLDER ONES THAT WE COULD CALL? UH, I BELIEVE THOSE ARE THE OLDEST.

I I'VE GOT MY BOOK HERE.

SO, UM, THE 2013 ARE YOUR OLDEST BONDS OUTSTANDING.

OTHER THAN THAT, WE DON'T HAVE ANY OTHER BONDS OUTSTANDING.

NOT OLDER THAN THAT.

THERE'S THE 20, YOU, YOU HAVE 20 THIRTEENS, YOU HAVE 20 FOURTEENS, 20 FIFTEENS, 20 SIXTEENS AND SO ON.

BUT ARE THE OLDEST ONES THAT ARE CALLABLE.

IF YOUR 20 THIRTEENS ARE CALLABLE AND BY NEXT YEAR YOUR 20 FOURTEENS WILL BE CALLABLE.

SO THAT, SO OH YES SIR.

WHEN, SORRY, I'M NOT, WHEN WOULD THESE BONDS MATURE? THE 20 13, 20 14.

AND IF WE PREPAY THEM EARLY, WHAT OTHER COSTS ARE WE GOING TO HAVE? YOU SAID 25 TO DO THIS.

DOES THAT INCLUDE ANY OTHER FEES? AND WE'RE SAVING 50,000 IN THE YEAR ONE TO PAY OFF 2.5 BASICALLY MILLION IN BONDS.

SO THE FIRST QUESTION WAS WHEN WOULD, WHEN WOULD THEY MATURE TO WHERE THEY'RE NO LONGER ON THE BOOKS? SO THE 20 THIRTEENS ARE ON YOUR BOOKS UNTIL 2033.

SO NOW YOU'RE PAYING OFF SOME OF EACH YEAR.

EACH YEAR.

JUST LIKE YOUR HOME MORTGAGE, YOU PAY DOWN PART OF THE LOAN PART AND THEN INTEREST.

SO EACH YEAR YOU'RE PAYING DOWN SOME.

SO WE'RE GOING, WE WOULD GRAB THE LONGEST OUT, FARTHEST AWAY AND PAY THEM OFF.

AND SO THE, THE 20 THIRTEENS, THEY BECAME, WELL THEY BECOME CALLABLE.

WE HAVE THE RIGHT TO TAKE THEM FROM THE INVESTOR NEXT WEEK, AUGUST 15TH, 2023.

SO THAT'S THE FIRST ONE THAT'S CALLABLE THAT WE COULD DO THIS TO.

THE COST TO DO IT IS 25,000.

THAT INCLUDES LEGAL, THAT INCLUDES GETTING A, A PAYING AGENT, AN ESCROW AGENT.

EVERYBODY THAT'S INVOLVED TO DO THIS.

THE SAVINGS, BECAUSE YOU'RE CALLING THEM THE SAVINGS ARE 51,000 IN YEAR ONE.

BUT WE ELIMINATE THE INTEREST ALL THE WAY TO 2033.

SO THE COMBINATION IS SEVEN.

YOU, YOU'VE KNOCKED OFF 700.

WHAT IT WAS MY 7 25 OF INTEREST OVER THE LIFE.

715 OVER BETWEEN NOW AND 2033.

BUT WE DON'T GET THAT BACK INTO OUR GENERAL FUND.

THE SEVEN.

NO, BUT IT, IT'S ALL ON THE I N SS, BUT IT'S MONEY THAT WE WOULDN'T HAVE TO PAY.

THERE'S NOTHING THAT CAN GET OVER TO YOUR M AND O.

UM, AND

[00:20:01]

THAT'S STATUTORILY.

, OUR, OUR LEGISLATORS IN AUSTIN DON'T WANT THOSE COMMINGLED, THEY DON'T WANT TAX SUPPORTED BONDS OR DEBT TO EVER GET OVER TO THE GENERAL FUND.

OR, OR PART OF THE TAXES FOR THE I N S TO GET TO GENERAL FUND EXPENDITURES.

THEY, THEY STRICTLY WANT THOSE SEGREGATED MM-HMM.

SO IT IS BASICALLY THOSE SEVEN HUNDRED AND FIFTY SEVEN FIFTEEN, THEY'RE NOT GONNA COME BACK TO US.

WE'RE JUST SAVING FROM PAYING THAT AMOUNT OVER THE MATURITY OF THE IT'S YES.

AND I KEEP GOING BACK.

IT'S LIKE A HOME, IF YOU PAY OFF PART OF THAT LOAN YEAH.

YOU'RE REDUCING THE INTEREST.

AND THAT'S WHAT WE'RE DOING.

WE'RE JUST REDUCING INTEREST, WHICH YOU'VE TAKEN THE PRINCIPAL AWAY, BUT YOU'RE ALSO REDUCING THE INTEREST.

WE DON'T COUNT THE PRINCIPLE THAT YOU'RE REDUCING AS SAVINGS BECAUSE YOU'RE USING 2,000,300 AND, YOU KNOW, 2,000,345 RIGHT NOW TO PAY OFF 2,000,345 THAT'S BACK THERE ON THE BACK END.

SO WE DON'T COUNT THOSE FUTURE, THAT 2,000,345 AS SAVINGS.

WE'RE ONLY COUNTING THE INTEREST SAVINGS.

'CAUSE YOU HAD TO PAY THAT 2 MILLION 3 45 UPFRONT.

THEY WASH OFF TO ANOTHER.

SO I HAVE ONE MORE QUESTION.

SO IF THE GOAL IS TO PAY DOWN DEBT AS A FINANCIAL ADVISOR ADVISING US, WHY WOULD WE NOT JUST TAKE $2 MILLION FROM A GENERAL FUND AND PAY THAT OFF AND, AND SAVE THE $25,000 PLUS OTHER FEES THAT ARE GONNA INCUR, UM, FROM NON-ESSENTIAL ITEMS AND INSTEAD OF CALLING A BOND OR INSTEAD OF PAYING OFF THE BOND AND RAISING TAXES? UM, I MANAGING THE TAX RATE.

YOU KNOW, WHEN, WHEN PVE STARTED THIS PRESENTATION AND THAT'S WHY THIS IS A POLICY DECISION.

SO BECAUSE THE LEGISLATURE SEGREGATED THOSE, THE MAINTENANCE AND OPERATION HAS TO BE HERE.

WE DON'T WANT YOU USING YOUR GENERAL FUND MONEY TO PAY FOR DEBT.

SO KEEP THE TWO.

AND IN MY OPINION, AS FINANCIAL ADVISOR, YOU WANT TO KEEP YOUR GENERAL FUND RESERVES ABSOLUTELY SEGREGATED.

YOU DON'T WANT TO USE THAT FOR DEBT SERVICE UNLESS THERE IS A REAL EMERGENCY.

SO THAT'S THE FIRST PART.

THE SO KEEP, YOU DON'T WANT TO USE YOUR GENERAL FUND RESERVES FOR DEBT.

DEBT SERVICE TAXES ARE THE ONLY THING THAT CAN BE USED TO PAY FOR DEBT SERVICE.

WELL THAT'S NOT TRUE.

DEBT SERVICE TAXES CANNOT BE USED FOR GENERAL FUND.

YOU CAN USE LEGALLY YOU HAVE THE RIGHT FROM YOUR GENERAL FUND TO MOVE IT TO THE I N S SIDE.

BUT YOU'RE NOT, AND YOU DON'T HAVE ANY LEGAL ABILITY TO MOVE THE I N SS TAX TO THE GENERAL FUND.

SO OUR OPINION WOULD BE NEVER TO LET THOSE TWO CROSS.

SO SINCE THAT'S NOT, WE DON'T HAVE $2,350,000 JUST TO BE ABLE TO PAY DOWN DEBT OUT OF THE I N S.

THE ONLY WAY TO DO THAT IS TO HAVE THAT TAX RATE THAT IS TO USE.

I SS BUT WE CAN, IF WE WANTED TO, WE COULD, WE COULD USE GENERAL FUND.

RECESSION HAS BEEN KICKED OUT ANOTHER YEAR.

WE, BECAUSE I'M JUST TRYING TO FIND OUT WHAT WE NEVER RECOMMEND THAT THOUGH.

UM, MIKE, I'M JUST TRYING TO GET MY HEAD WRAPPED AROUND WHAT, WHAT IS THE UNDERLINING GOAL HERE? IS IT TO PAY OFF DEBT? IS IT TO PAY OFF DEBT TO HAVING MORE BONDS? IS IT TO LOWER THE TAX RATE? IS IT TO KEEP THE TAX? 'CAUSE THERE'S NOTHING THAT SAYS WHEN ALL THESE BONDS FOR THE ROAD BONDS HAVE CLEARED THAT IT'S GONNA GO TO A 0.59.

NO, YOU STATED THAT.

SO IT COULD GO TO A 0.55.

IT COULD.

I MEAN, 'CAUSE WE'RE, WE'RE, WE JUST DID WHAT, 45 MILLION THIS YEAR.

SO WE'RE STARTING TO PAY ON THAT.

SO WHEN ALL THE BONDS HAVE BEEN ISSUED, THERE COULD BE A GOOD CHANCE THAT IT'S NOT GONNA GO TO 0.59.

SO THERE'S NOT A NEED TO CONTROL THE TAX RATE AS MUCH AS WE'RE, WE'RE THINKING ABOUT RIGHT NOW, GOING FROM A 0.48 TO A 0.59.

UH, I YOU ARE CORRECT.

THERE IS, THERE IS, THERE IS LIKE YOUR PRIOR BOND ISSUE THAT WENT VOTED, YOU NEVER GOT TO THE TAX RATE.

YOU, THE CITY NEVER GOT TO THE TAX RATE.

WE TOLD VOTERS.

BUT AS A FINANCIAL ADVISOR, AS STAFF, AS COUNSEL, CERTAINLY OUR, WE WANT TO UNDER PROMISE AND OVER DELIVER TO YOUR CITIZENS BECAUSE YOU'RE BUILDING TRUST WITH THEM CITIZENS.

WERE NOT GONNA GO PAST 59 99 FOR THIS BOND ISSUE.

SO WE WANNA MAKE SURE THAT WE'RE NOT DIRECTING YOU TO DO THAT.

UM, AND THERE ARE TIMES THAT BONDS HAVE GONE OVER THE, WHAT THEY THOUGHT WOULD BE THE TAX RATE, BUT WE DON'T WANT TO BE IN THAT POSITION.

SO LIKE YOUR LAST BOND ISSUE, YOU SET, SET A SET NUMBER, YOU NEVER GOT THERE.

WE DON'T EXPECT TO GET THERE, BUT WHO KNOWS WHAT'S GONNA HAPPEN IN THE FUTURE TAXABLE VALUE WISE, GROWTH WISE.

UM, DO WE GO,

[00:25:01]

DO WE ENTER INTO A RECESSION? I MEAN BY THE EXPERTS SAYING IT'S NOT COMING IN THE NEXT COUPLE MONTHS.

NOW MAYBE IT'S NEXT YEAR.

DO WE GO INTO A SLOW GROWTH PERIOD? OUR CRYSTAL BALL IS NO BETTER THAN YOURS.

WE JUST GO OFF THE EXPERIENCES THAT WE'VE HAD HERE IN KYLE HERE IN CENTRAL TEXAS AND JUST TRY TO GIVE YOU ALL THE OPTION.

SO YOU ASKED ME WHAT, WHAT'S THE BENEFIT OF DOING IT, WHAT WE KNOW IT WILL KEEP THE MAXIMUM TAX RATE LOWER IN THE FUTURE BECAUSE YOU'RE USING IT AND YOU'RE PAYING DOWN NOW.

IS THAT WORTH IT? I DON'T KNOW.

THAT'S, THAT'S WHERE THE POLICY IS AND I DON'T, YOU KNOW, YOU'RE, YOU ARE CUTTING OFF INTEREST GOOD THING, BUT YOU ARE GOING TO HAVE A HIGHER TAX RATE NEXT YEAR THEN YOU OTHERWISE WOULD.

MAYBE THAT'S A BAD THING.

DO WE KNOW THAT FOR SURE? YEAH.

I MEAN IF YOU DON'T DO THIS, YOUR TAX RATES COULD BE, WE, WE'VE CALCULATED 47, 46, 93, 46 93.

THAT'S WHAT YOU WILL BE NEXT YEAR.

UM, I THINK CALCULATIONS HAVE BEEN COMPLETED.

FINAL VALUES HAVE COME IN.

THAT'S WHERE IT'S ISN'T THAT LOWER THAN THAT'S LOWER 50 82.

YEAH, NO, THAT'S, THAT'S WHAT WE'RE SAYING.

SO YOUR CURRENT TAX RATE IS 50 82 MM-HMM.

AND, AND SO YOU'RE GOING TO HAVE A LOWER UNDER NOT DOING A DFE UNDER THE, THE, THE SNAPSHOT WHERE YOU WERE LAST TWO WEEKS AGO.

WAS IT TWO WEEKS AGO? MM-HMM.

COUNCIL MEETING, UM, THAT WOULD BE YOUR VOTER APPROVED RATE.

TAKING INTO ACCOUNT ALL THE OUTSTANDING DEBT PICKING UP THREE AND A HALF PERCENT ON THE M AND O SIDE.

TAKING, CAN'T INTO COUNT THE NEW BONDS WE ISSUED IN JANUARY.

SO THAT IS YOUR VOTER APPROVED RATE.

THAT'S WHAT DROVE THIS CONVERSATION IN THIS MEETING TODAY WAS, OKAY, THAT'S BELOW WHERE WE ARE NOW.

THAT'S BELOW WHAT THE VOTERS HAVE SEEN AND WHAT THEY'VE BEEN PAYING FOR.

WE KNOW WE'RE GOING, WE HAVE $240 MILLION OF BONDS LEFT TO ISSUE.

WE KNOW THAT THAT IS GOING TO PUSH US, UH, PUSH US UP ABOVE 50 82.

HOW FAR ABOVE WE DON'T KNOW, BUT ANYTHING YOU PAY OFF NOW, IF YOU CHOOSE, THAT WILL BE A LOWER TAX RATE IN YEAR.

IF THIS IS YEAR ONE, YOU'RE, YOU'LL HAVE A LOWER TAX RATE THAN YOU NORMALLY WOULD OR WOULD OTHERWISE IN YEAR 2, 3, 4, 5 AND OUT THAT BECAUSE YOU'VE PAID OFF BONDS AND NOW YOU'VE REPLACED THAT, YOU'VE LEFT A HOLE.

ANY NEW BONDS WOULD COME IN AND FILL THAT.

BUT YOU'VE LOWERED YOUR TAX RATE AND, AND OUR, OUR ESTIMATE THAT WE RAN EARLIER OVER THE LONG RUN, WE THINK, AND AGAIN, HOW IT, IT'S ALL KIND OF, IT'S NOT A SCIENCE.

IT'S ALMOST, YOU KNOW, A MIXING OF, OF CHEMICALS, BUT WE THINK IT'S GONNA BE ABOUT A HALF CENT REDUCTION IN YOUR OVERALL TAX RATE TO YOUR MAX IN THE FUTURE.

SO YOU'RE, YOU'RE, YOU'RE PAYING PERHAPS 4 CENTS MORE THAN YOU WOULD TO GET TO THE 50 82, BUT OVER THE YEARS WE THINK YOUR TAX RATE'S GONNA BE ABOUT A HALF CENT LOWER THAN IT OTHERWISE WOULD BE BECAUSE OF THAT.

I HAVE A QUESTION ABOUT THE 20 13 20 14 BONDS.

YOU SAID THAT THEY WILL MATURE IN 2033.

UM, SO IF WE WERE TO PAY SOME OF THEM, YOU KNOW, THE TWO POINT SOMETHING MILLIONS THAT WE WILL COLLECT FROM THESE DFES, UM, DO WE LIKE, UM, REFINANCE THOSE OR DO WE KNOW WHAT THE TAX RATE LIKE THE INTEREST WILL BE? IS THERE ANY POTENTIAL INCREASE IN THE SAVINGS THAT WE WILL HAVE IF WE WERE TO DO THAT? SO CAN I TACK ONTO THAT? YES, PLEASE.

WHEN WOULD THEY, WHEN WOULD THEY BE FULLY PAID OFF IN THIS SCENARIO? UNDER THIS SCENARIO? ALONG WITH HER QUESTION.

WELL RIGHT NOW WE'LL JUST USE THE 20, UH, 13 BONDS.

IF WE DO NOTHING, THEY'LL BE PAID OFF IN 2033.

IF WE, AND AND SO THERE'S 9,875,000 LEFT OUTSTANDING.

SO WE'RE TAKING 2,000,375.

WE'RE TAKING THE LAST TWO MATURITIES OFF.

GUYS, I, I'M JUST WANNA INTERRUPT YOU.

WE'VE GOTTEN SOME REPORTS, THERE WERE SOME PROBLEMS HEARING THE SOUND, SO, UM, MAKE SURE THE MICROPHONES ARE BEING USED TO THESE.

YOU MAY HAVE TO GET A LITTLE BIT CLOSER MARK.

I, I PERSONALLY HAVE HAD TROUBLE WITH THAT ONE MYSELF, SO I KNOW HOW DIFFICULT THAT ONE IS.

WE MAY WANNA SPEAKING QUITE IN A DIFFERENT ONE.

HAVE DIFFERENT INTEREST RATES.

EVERY TIME I, EVERY TIME I TRY TO USE IT, I HAVE TROUBLE.

SO IF WE, I'M JUST GLAD YOU HAVE A LOUD VOICE .

YEAH, I KNOW YOU ALL CAN HEAR THAT'S HER HERE ELSEWHERE THAT SHOULD BE WORKING IN, IF YOU WOULD LIKE TO THANK YOU, MARK.

SO YOU'RE, OF THE 20 THIRTEENS, THERE'S 9,875,000 OUTSTANDING.

THEY CARRY AN INTEREST RATE, WHAT YOU'RE PAYING ON THEM, RANGING FROM 3% TO AS HIGH AS 4%.

DIFFERENT MATURITIES

[00:30:01]

WE WOULD GRAB, IF YOU SAY YES, THIS IS SOMETHING WE WANNA DO, WE WOULD GRAB THE 2,000,345, THE LONGEST MATURITY.

SO WE WOULD TAKE ALL OF THE 2030 THREES AND WE WOULD TAKE A MAJORITY OF THE 2030 TWOS.

HMM.

SO THEY'RE THE LONGEST MATURITY.

SO WE PAY THOSE OFF.

THEY ARE OFF THE BOOKS.

THEY'RE NOT, IT'S NOT A REFINANCE.

YOU GOT CASH AND YOU JUST PAY THEM OFF.

SO THERE'S NO REFINANCING, THERE'S NO CHANGING THE INTEREST RATE.

WE OFTEN WILL COME TO YOU AND HAS DONE THIS MANY TIMES WHERE WE'VE REFINANCED EXISTING DEBT.

, THAT'S JUST LIKE REFINANCING A HOME.

UHHUH , YOU HAVE $10 MILLION OUTSTANDING AT 5%.

WE COME BACK AND WE NOW HAVE $10 MILLION OUTSTANDING AT 3.5%.

INTEREST RATES HAVE GONE SO HIGH THAT BORROWING RIGHT NOW IS AT A HIGHER RATE THAN REFINANCING THESE BONDS.

SO DID I, I THINK, DID I GET BOTH THE QUESTIONS ANSWERED? SO, UM, BASICALLY IF WE WERE TO DO THIS, WE WILL END UP PAYING OFF PAYING THIS OFF BY 2031 MAYBE ISH.

THERE IS SOMETHING LIKE SOMETHING ALONG THOSE LINES.

AND THAT THOSE AMOUNT, THOSE BONDS THAT WE STILL HAVEN'T PAID THOSE, COULD THOSE BE REFINANCED AT A LOWER INTEREST RATE OR NOT? THERE, THERE IS NOTHING OUTSTANDING THAT YOU HAVE RIGHT NOW THAT IS ALSO CALLABLE.

REMEMBER WE HAVE TO HAVE THE RIGHT TO TAKE 'EM FROM THE INVESTOR.

SO THEY HAVE TO HAVE CALLABLE FOR US TO BE ABLE TO EVEN LIKE CONSIDER REFINANCING IT AND NOTHING'S OUTSTANDING.

EVERY BOND THAT WE HAVE OUTSTANDING RIGHT NOW IS AT A LOWER INTEREST RATE THAN WE COULD REFINANCE.

THAT'S ALL I NEEDED TO KNOW.

PERVEZ.

I CAN SPEAK TO THIS, BUT I, IT'S MY UNDERSTANDING THAT THE 2013 BONDS WERE A REFINANCE.

NOT THAT WE ISSUED THE DEBT IN 2013.

IT'S NOT LIKE 2013 WAS THE FIRST DEBT WE EVER ISSUED IT, IT IS A GEO REFUNDING BOND MA IT'S A GEO REFUNDING BOND.

SO THAT'S, WE'VE DONE THAT AND THAT'S WHERE LIKE 2016 NUMBER CAME THROUGH WHERE WE SAVED INTEREST BY REFINANCING OUR DEBT.

WE DIDN'T ACTUALLY ISSUE THE DEBT IN 2016.

WE DIDN'T HAVE ANY DEBT THAT WE ISSUED OTHER THAN WE YEAH, NO, WE DIDN'T ISSUE ANY DEBT IN 20, WE REFUNDED ALL BONDS OUTSTANDING.

TWO OR THREE TIMES.

TO SAVE MONEY FOR THE CITY.

AND, AND I DO WANNA SAY, I MEAN THE, THE, WE HAVE, SO THAT'S THE GEO REFUNDING BOND OF 2013.

WE HAVE A GEO BOND OF 2013 ALSO.

WE, UNTIL YOU ALL SAY THIS IS WHAT WE WANT TO DO, THIS MAKES SENSE.

WE HAVEN'T CALLED ANYTHING.

WE'LL GET THE MOST EFFICIENT ONES TO GENERATE THE MOST SAVINGS TO YOU ALL.

UM, BE JUST TO BE, BUT IT, IT'S, AND THEN YOUR 20 FOURTEENS BECOME CALLABLE IN 2014.

SO YOU HAVE, WE HAVE THREE BOND ISSUES IN THE NEXT YEAR THAT WE'LL HAVE THIS OPTION TO DO.

SO WE'RE ONLY PAYING OFF THE 20, THE ONES THAT ARE GONNA BE DOING 2023.

IS THAT CORRECT? OR IN AUGUST? WELL, IT'S THE 30 33 MATURITIES.

IT'S FUTURE MATURITIES OF THE 2013 BOND THAT BECOMES CALLABLE IN 23.

THERE'S 5,000,520 OUTSTANDING.

SO SAY WE PAY OFF THIS 2033, THEN WE'LL STILL HAVE 2034 AND 2036.

NO, UH, NO.

WELL, SO I GUESS I I'M A LITTLE CONFUSED ON THAT QUESTION.

WELL, IT SAYS OBLIGATIONS ARE CURRENTLY OUTSTANDING IN THE PRINCIPAL AMOUNT OF 3,385,000 ON MATURE ON AUGUST 15TH, 2024, AUGUST 15TH, 2026 AND AUGUST 15TH IN EACH OF THE YEARS, 2027 THROUGH 2033.

SO, SO I THINK THAT MUST BE THE MATURITY.

OH NO, THAT'S THE, THE RESOLUTION.

WE DRAFTED THE RESOLUTION UNDER THE ASSUMPTION THAT THE CITY, SORRY, WE DRAFTED THE RESOLUTION UNDER THE ASSUMPTION THAT THE CITY WOULD BE FEES, THE GO BONDS 2013, NOT THE GO REFUNDING BONDS.

2013.

SO AND SO THOSE ARE CURRENTLY OUTSTANDING WITH MATURITIES IN 20 24, 20 26, 20 27 AND 2033.

THE 2030 THREES ARE TERM BOND.

THE 2033 ARE TERM BONDS WITH MATURITIES THAT PAY OFF IN 20 33, 32, 31 30 IT, IT IS A, IN THE RESOLUTION IT WAS SOLD AS ONE BOND, BUT IT HAS MATURITIES EACH YEAR AND THOSE WON'T BE PAID OFF.

IF THEY WILL, WE'RE GONNA PAY OFF THE LAST, WE'RE COMING OUT OF THE 2033 AND PAYING 2,350,000, BUT THAT'S NOT THE FULL AMOUNT THAT IT'S OWED.

THERE'S OF THAT BOND ISSUE OF THE 20 THIRTEENS,

[00:35:01]

WE'RE GONNA PAY OFF APPROXIMATELY HALF OF THOSE.

SO WE'RE NOT GONNA EVEN PAY THE FULL BOND OFF.

WE'RE JUST GONNA PAY A PORTION.

SO THAT'S LIKE ME PAY PAYING EXTRA ON MY HOUSE MM-HMM.

, WHICH IS HELPFUL, BUT THE BOND, MY HOUSE PAYMENT'S GONNA BE THERE UNLESS I PAY IT ALL OFF, IT, IT, BUT IT WILL LOWER THE BOND PAYMENT GOING FORWARD.

I THAT'S TOTALLY UNDERSTOOD.

I AM JUST WANNA MAKE SURE I GRASPING NO, THAT'S MARK.

CAN YOU TALK ABOUT, UM, WHEN, WHEN, WHEN YOU WERE MAKING YOUR PROPOSALS ON THE, THE TIMING OF HOW MUCH MONEY WE WOULD BE ABLE TO ISSUE ON THESE GEO BONDS FOR THESE ROADS THAT WERE OBLIGATED, THERE WAS THIS, THERE WAS A SCHEDULE YES.

THAT YOU WERE, THAT YOU WERE PURSUING THERE.

IF WE ADOPT THIS DFE PLAN, UH, DOES IT HAVE THE ABILITY TO MAKE AN IMPACT ON HOW, HOW QUICKLY WE COULD ISSUE FUTURE DEBT FOR THESE ROADS? AND THE POINT BEING, DOES IT HELP US GET THESE ROADS BUILT FASTER IF THAT WAS OUR ONLY STRATEGY, WHICH I'M NOT SAYING IT IS, BUT IF, IF IT WAS YOUR ONLY STRATEGY ISSUING AS FAST AS YOU CAN.

UH, SINCE WE'VE YEAR ONE IN OUR PRELIMINARY NUMBERS, AGAIN, THERE WAS NOT FULL ENGINEERING, THERE WASN'T ANYTHING THERE.

WE HAD $75 MILLION PLANNED TO BE ISSUED IN YEAR ONE.

WE ISSUED 45, THERE'S $30 MILLION THAT IS VOTED AND UN ISSUED.

THEREFORE OUR TAX RATE IS LOWER THAN WHAT WE ARE PROJECTING.

SO IF YOUR GOAL WAS ISSUED $294 MILLION IN THE NEXT FIVE YEARS, I'M NOT EVEN SURE THAT'S PRACTICAL BECAUSE WE CAN'T SPEND IT ALL.

BUT IF THAT WAS YOUR GOAL, THIS WILL O OVERALL END UP WITH A LOWER TAX RATE BY ABOUT THAT HALF CENT TAX RATE.

IF, IF, IF I'M ANSWERING YOUR QUESTION WELL, SO NO, THE WAY WE, SO OUR STRATEGY FOR THESE ROAD BONDS HAS BEEN THAT WE ISSUED ALL THE ENGINEERING CONTRACTS UP FRONT, WHICH MEANS EVERY ROAD IS MARCHING FORWARD AND THERE'S GONNA COME A TIME WHEN MAYBE NOT ALL OF THEM ARE GONNA COME READY FOR CONSTRUCTION AT THE SAME TIME, BUT TWO THREE OF THESE ROAD PROJECTS WITHIN ONE FISCAL YEAR, WE COULD BE LOOKING TO ISSUE, YOU KNOW, MASSIVE CONTRACTS.

AND SO THE CALCULATIONS THAT YOU PUT FORWARD SAID THAT WE HAVE TO ISSUE CERTAIN AMOUNTS OF DEBT IN CERTAIN YEARS BECAUSE OF THE TAX RATE IMPACT.

LIKE FOR EXAMPLE, WE CAN'T ISSUE IT ALL ON DAY ONE BECAUSE THAT WOULD BLOW THE TAX RATE THAT WE PROMISED TO MAINTAIN AND WE WOULDN'T BE ABLE TO ACCOMPLISH THAT.

SO WHAT I'M TRYING TO FIGURE OUT IS, AS IT RELATES TO OUR ABILITY TO HANDLE TWO OR THREE ROAD PROJECTS THAT MAY COME SIMULTANEOUSLY IN 24 MONTHS, DOES THIS HELP US WITH OUR ABILITY TO ISSUE THAT DEBT, UH, BE BECAUSE WE'VE PAID OFF DEBT, IT FILLS IN IT YES, IT DOES.

INCREASES DEBT.

SO ORIGINALLY, AND I DON'T KNOW IF I, I MAY BE TALKING AROUND YOUR QUESTION, BUT WHEN WE HAD THE BOND ELECTION, WE WERE PLANNING ON 47 MILLION PLUS, UH, SIX, UH, BE 76 MILLION IN YEAR ONE.

WE DID NOT ISSUE ALL OF THAT.

NEXT YEAR WE WERE PLANNING A HUNDRED MILLION JUST IN THIS MODEL, YOU KNOW, AND, AND IT WAS TO, TO GET THERE.

SO FROM WHERE WHERE WE'VE BEEN TALKING MOST RECENTLY WITH THE CONSTRUCTION, AND AGAIN, EVERYTHING'S IN FLUXX.

I THINK WE HAD PERHAPS ANOTHER YEAR.

I'M TRYING TO MAKE SURE MY DATES ARE CORRECT.

WE, WE, LIKE I BRIAN, I DON'T WANNA PUT WORDS IN YOUR MOUTH.

I THINK WE HAVE ANOTHER YEAR BEFORE THAT A HUNDRED MILLION WOULD BE HITTING 25 PERHAPS.

THERE WE GO.

SO WE STILL HAVE PROGRAMMED IN AS OF MAY 1ST 97 WHERE WE ORIGINALLY WERE GONNA BE AT A HUNDRED.

SO IT'S STILL, BUT THAT STILL MAY NOT BE NEEDED AT THAT POINT.

I I THINK IT'S POSSIBLE WE WON'T NEED ANY BOND ISSUE NEXT YEAR.

BUT THEN TO YOUR POINT ABOUT THE TIMING, YOU COULD HAVE IN YEAR THREE A LOT MORE THAT GETS ISSUED THE, THE TIME.

POTENTIALLY 46 CENTS UP TO 55 CENTS OR MAYBE 59 DEPENDING ON KIND OF WHAT THE RATES ULTIMATELY BE, WOULD BE.

THAT'S A LOT BIGGER.

MASSIVE.

AND I THINK THE POLICY QUESTION HERE IS, I KNOW THIS IS VERY COMPLEX WITH ALL THE CALCULATIONS AND ISSUANCES AND ALL THOSE KINDS OF THINGS, BUT THE REAL POLICY QUESTION FOR YOU GUYS IS DO YOU WANT TO TRY TO MANAGE THE TAX RATE, KEEP IT WHERE IT IS SO IT DOESN'T DROP SIGNIFICANTLY AND IT POTENTIALLY HAS TO GO BACK UP AND, UH, THERE IS A TAX, WHAT PEOPLE PAY REGARDLESS OF THE RATE, WHAT THEY PAY.

WE'RE GONNA GET TO THAT IN A MOMENT.

WE'RE GONNA SHOW YOU KIND OF WHAT THAT LOOKS LIKE FOR THE AVERAGE HOME.

BUT THAT'S THE POLICY QUESTION IS, IS THAT HELPFUL TO HAVE THE TAX RATE NOT FLUCTUATING A LOT AND NOT HAVE TO GO FROM

[00:40:01]

WE BELIEVE THAT THE OVERALL RATES WOULD ARE DROPPING FROM A PROJECTED 59 CENTS TO A PROJECTED 55 CENTS SOMEWHERE IN THAT NEIGHBORHOOD.

AND AGAIN, WE'RE LOOKING 3, 4, 5 YEARS OUT.

SO IT'S DIFFICULT TO KNOW EXACTLY WHAT THAT LOOKS LIKE.

BUT THAT'S KIND OF THE, THE POLICY QUESTION THAT YOU'RE GONNA SEE, UM, THAT THAT'S BEFORE YOU.

AND UM, ONE OF THE THINGS I THINK WE TALKED ABOUT AS A GROUP IS SOMETIMES WE LOOK AT UTILITY SYSTEMS, YOU TRY TO SAY, DO YOU WANT TO HAVE A THREE OR 4% INCREASE ON UTILITY RATES EVERY YEAR OR DO YOU WANT TO HAVE 0% INCREASES AND THEN SUDDENLY HAVE A 20% INCREASE? AND THAT'S KIND OF A, IT'S A GOOD, UM, WAY TO THINK ABOUT IT.

IT'S KIND OF THE SAME THING.

BUT, UM, THERE'S A LOT OF FACTORS HERE AND WE JUST WANTED TO MAKE SURE WE CAME BACK TO YOU TRY TO GIVE YOU ALL THE FACTS.

I THINK THERE'S A LITTLE CONFUSION ON THE STAFF WHEN WE PRESENTED THIS, UH, THE OTHER DAY THAT WE WANNA MAKE SURE YOU HAD ALL THE INFORMATION CAN MAKE A GOOD INFORMED DECISION ON IT.

SO HOPEFULLY THAT MAKES SENSE.

I, IT GETS A LITTLE CONFUSING WHEN WE TALK ABOUT WHICH, WHICH BOND ISSUE, WHAT THE INTEREST RATES ARE, WHAT'S THE PRESENT VALUE SAVINGS AND ALL THOSE KINDS OF THINGS.

BUT THAT'S THE CORE ISSUE THAT YOU HAVE.

I HAVE A QUICK QUESTION.

'CAUSE YEAH, I I COMPLETELY GET WHAT YOU'RE SAYING.

I, I THINK I WOULD RATHER, AS A HOMEOWNER SEEING MY, MY TAXES KIND OF REMAINED THE SAME.

I KNOW WE CANNOT CONTROL THE APPRAISAL AND YOU KNOW, IF THE HOMEOWNER APPRAISED HIGHER THEN WE ARE GONNA PAY HIGHER BUT GOING LOWER AND THEN IN TWO YEARS IT'S GONNA HAVE SUCH A HUGE SPIKE AND THAT'S WHEN WE'RE GONNA SEE THE UPROAR FROM EVERYBODY.

UM, WHAT IS THE AVERAGE INCREASE ACCORDING TO THE APPRAISALS THAT WE HAVE SEEN? WE'RE GONNA, THAT WE WILL SEE IF WE KEEP IT AS 0.50 18, WE'RE GONNA SHOW YOU THAT IN ABOUT THREE OR FOUR SLIDES.

WE'VE GOT THAT COMING.

OH, CAN I ASK PEREZ A QUESTION TO, TO ADDRESS THAT ISSUE? I DON'T THINK IT'S WORKING THE WAY THAT SHE DESCRIBED BECAUSE YOUR TAX MONEY THAT YOU PAY STILL GOES UP EVEN THOUGH YOUR RATE GOES DOWN.

THE REASON WHY IT GOES DOWN IS 'CAUSE YOUR APPRAISALS ARE MORE, THE CITY IS ONLY ALLOWED A STATUTORY AMOUNT TO INCREASE.

SO WE'RE NOT TALKING ABOUT, WE'RE NOT, WE'RE LOSING MONEY, WE'RE NOT TALKING ABOUT, WE'RE EVEN STAYING THE SAME WITH MONEY.

WE HAVE INCREASED OUR, OUR INCOME BY AT LEAST, WHAT IS IT, 3% OR THREE AND A HALF PERCENT THAT THE STATE ALLOWS.

SO IF WE CONTINUOUSLY GO UP, THE NEED TO INCREASE THE RATE IS NOT GONNA NECESSARILY INCREASE AS WELL.

I THINK THE PROBLEM IS WHEN YOU GET CONFUSED WITH RATE VERSUS WHAT YOU PAY VERSUS, UH, MONEY THAT WE RECEIVE GOING UP OR DOWN, IT KIND OF CONVOLUTES THE WHOLE SITUATION.

SO IT WOULD BE NICE TO SEE THAT IN DOLLARS AND RATES SIDE BY SIDE, IT'S ON THERE.

UM, BUT I JUST, WHAT I WANNA ADDRESS IS I DON'T THINK WE'RE, WE'RE GONNA HAVE TO HAVE THE RATE INCREASE BECAUSE WE WE'RE NOT GONNA, EVEN IF OUR RATE STAYS THE SAME, WE'RE GONNA PAY MORE.

IF WE LOWER IT, WE'RE STILL GONNA PAY MORE REGARDLESS OF WHAT THAT RATE IS, UH, EITHER AT THE 0.47 OR THE 0.508.

WORTH OF PROJECTS READY TO GO AND WE HAVE TO ISSUE A $200 MILLION WORTH OF DEBT.

IS THAT CORRECT? WE'RE PAYING MORE IN TAXES REGARDLESS OF WHAT WE DO THIS YEAR.

I I THINK THE OTHER, YEAH, I ALSO WOULDN'T CHARACTERIZE THIS AS A SPIKE YET.

UM, IF WE HAVEN'T SEEN THE, THE PEAK AND WE'VE ALREADY ISSUED OUT 47 AND THEN 70 MILLION FOR THESE ROAD BONDS AND I, I JUST DON'T THINK FINANCIALLY WE WOULD BE, UM, RESPONSIBLE TO ISSUE OUT A HUNDRED IF WE'RE NOT USING IT LIKE YOU SAID.

SO THAT WOULD THAT THAT I DON'T SEE THOSE TWO WORKING, UH, LOGICALLY.

UM, UM, IN THE BENEFIT FOR THIS, FOR THE, FOR THE CITY TO ISSUE OUT A HUNDRED MILLION AND NOT USE IT, UM, WELL WE DON'T WANT DO THAT.

THAT'S NOT, THAT'S NOT BEING SO THE LIKELIHOOD INCREASE THAT'S NOT, I WAS SAYING THE SPIKE THAT WILL COME IN 20 25, 20 26, WHENEVER WE ISSUE THOSE BONDS, WE WILL GO PROBABLY FROM THE ZERO POINT.

IF WE WERE TO DO THE 0.47 TODAY IN 2026, WE MIGHT HAVE TO JUMP TO POINT 55 OR POINT 59.

THAT'S WHAT I'M SAYING, YOU KNOW, UHHUH , THAT'S WHEN WE WILL SEE THE UPWARD FROM RESIDENTS.

'CAUSE WE'RE GONNA ASK THE TAXES, WE'LL GO UP ALMOST LIKE 10 CENTS OR SOMETHING ALONG THOSE LINES.

SO THAT'S WHAT I WAS TRYING TO SAY.

YEAH, I THINK, I THINK THE SITUATION IS ONE WHERE IT'S LIKE, THIS ISN'T REALLY EVEN A QUESTION OF DO WE DO THIS BECAUSE OF NEXT YEAR.

IT REALLY IS THREE YEARS FROM NOW.

IT'S NOT EVEN THE FOLLOWING YEAR, IT'S THE YEAR AFTER.

BECAUSE IF WE PURSUE A COMMUNITY CENTER GEO BOND, UH, THE VOTERS APPROVE THAT NEXT NOVEMBER, UH, AND START THAT DESIGN, THAT DESIGN COMES READY FOR CONSTRUCTION ALMOST AT THE EXACT SAME TIME THAT THE DESIGN FOR ALL OF THESE ROADS COMES READY FOR CONSTRUCTION.

SO WE COULD BE IN A SITUATION WHERE WE HAVE $200 MILLION

[00:45:01]

AND THAT DEBT PAYMENT COMES IN AS ONE YEAR'S LUMP SUM, WHICH IS CORRESPONDS TO A MASSIVE POTENTIAL TAX INCREASE.

SO THIS STRATEGY IS ABOUT SAYING WE KNOW FOR A FACT THAT THESE ROADS ARE COMING FORWARD IN ABOUT TWO TO THREE YEARS TIME WITH SEVERAL HUGE DEBT ISSUANCES.

AND IF IT IS OUR INTENTION TO GO TO THE VOTERS AND ASK FOR THEM TO APPROVE A COMMUNITY CENTER BOND AS WELL, TO PUT THAT IN THE SAME SEQUENCE, IT IS PRUDENT OF US TO TAKE THE DECISION, MAKE THE DECISION NOW TO KEEP THE TAX RATE LEVEL UNDERSTANDING THAT WE'RE GONNA HAVE DEBT TO ISSUE OVER THE COURSE OF THE, IT MAKES IT MUCH EASIER THREE YEARS FROM NOW FOR THAT COUNCIL TO SAY, YES, LET'S GO.

BECAUSE THEY'RE NOT HAVING TO WEIGH THE POLITICAL CALCULUS OF A 10 CENT TAX INCREASE BECAUSE WE'VE, UH, BEEN PAYING DOWN THE DEBT IN ANTICIPATION.

SO, UH, POLITICAL LUMP NOW FOR POLITICAL FAVOR AND A SMOOTHER SAILING RIDE IN THE FUTURE FOR MYSELF.

I, I SEE THE BALANCE OF THAT ON BOTH SIDES.

WE COULD SAY, YOU KNOW WHAT, WE'RE NOT GONNA RATE, WE'RE NOT GONNA, UH, HOLD THE RATE LEVEL NOW WE'RE GONNA GO AHEAD AND GO DOWN, UH, AND THEN WE, THE TIME COMES, WE'RE GONNA GO BACK UP.

AND THAT WOULD BE A, A COMMITMENT THAT WE WOULD HAVE TO MAKE.

UH, AND THEN WE COULD WALK THAT, WALK THAT PATH OR WE COULD SAY WE'RE GONNA KEEP THE RATE NOW, UH, THE SAME NOW SO THAT IT'S EASIER ON US IN THE FUTURE BECAUSE WE KNOW WE'RE GONNA DO THIS.

BUT IF WE KEPT THE RATE THE SAME NOW AND THEN DIDN'T GO FOR A COMMUNITY CENTER BOND NEXT YEAR AND WANTED TO SAY WE'RE GONNA SPACE OUT THE, THESE ROAD PROJECTS UNTIL WE CAN ABSORB IT, THERE'S NO REASON TO DO THE DFE.

SO THE DIFF AS I SEE IT, IS A PART OF AN OVERALL STRATEGY.

TWO PARTS.

NUMBER ONE IS WE ARE COMMITTED WHEN THESE ROADS ARE READY THAT WE'RE GONNA ISSUE CONSTRUCTION BONDS AS THEY COME IN AS MUCH AS WE CAN POSSIBLY DO TO GET THESE ROADS, UH, REHABILITATED.

AND NUMBER TWO, WE'RE GONNA ASK THE VOTERS TO CONSIDER A COMMUNITY CENTER BOND NEXT, NEXT NOVEMBER, WHICH STILL WILL TAKE 18 MONTHS FROM THAT DAY BEFORE WE'RE ACTUALLY READY FOR CONSTRUCTION.

SO THAT'S THE, THAT'S THE CALCULUS AS FAR AS I CAN SEE.

AND YES, THERE'S DEFINITELY, UH, I THINK BOTH DANIELLA AND YVONNE ARE BOTH RIGHT.

THEY'RE JUST SAYING IT'S JUST THE DIFFERENT SIDE OF THE COIN COIN.

BUT FOR SURE THE DFE PROGRAM DOES HAVE A, AN IMPACT IN TERMS OF WHAT PEOPLE WILL PAY THIS YEAR IN THEIR TAXES.

THEY WILL PAY MORE THAN WHAT WE HAVE TO CHARGE IF WE DON'T PAY THE EXTRA DEBT OFF EARLIER.

THERE'S FINANCIAL ARGUMENTS TO BE MADE THAT WILL SAVE INTEREST.

UM, BUT THE REALITY IS WE ARE TAXING MORE, WE'RE, UH, IN ORDER TO SAVE THAT INTEREST AND MAKE THOSE PREPARATIONS.

SO WE NEED TO, THESE ARE LONG-TERM PLANS.

IT'S NOT, THESE PLANS HAVE TO, UH, LAST LONGER THAN ELECTION CYCLES.

THESE ARE TWO, THREE AND FOUR YEAR PLANS.

SO WE GOTTA BE COMMITTED TO IT IF WE WANT TO DO IT.

I, I THINK I'VE GONE THROUGH EVERYTHING ON, ON THE, THE ISSUES.

I THINK IT GETS TO THE ACTUAL NUMBERS NOW AND THAT'S, I THINK PERVEZ WAS TAKING THAT ON.

THE SAME TAX RATE AS THE VOTER APPROVAL TAX RATE.

YEP, GO AHEAD.

SO MARK WALKED Y'ALL THROUGH THE STRATEGY OF USING DFE AS A OPTION TO KEEP THE TAX RATE THE SAME FOR NEXT YEAR.

SO HE'S GIVEN YOU THE PROS AND CONS OF THE DEBT DFE STRATEGY.

SO NOW LET'S TALK ABOUT THE IMPACT ON THE TAX RATES.

THIS IS THE EXACT SAME SLIDE WE SHARED WITH COUNCIL ON JULY 29TH.

THIS SHOWS THE CERTIFIED TAXABLE ASSESSED VALUATION FOR 23 AS COMPARED TO 22.

WE GREW BY ALMOST A LITTLE OVER A BILLION DOLLARS.

THIS DOES NOT INCLUDE TS 1, 2, 3, AND FOUR.

SO JUST THE CITY PORTION GREW 20.6%.

JUST, JUST A REFRESHER.

SO THIS IS ALSO A SLIDE FROM JULY 29TH WHEN THE PROPOSED BUDGET WAS PRESENTED TO COUNCIL.

CITY MANAGER ALSO HAD PROPOSED TAX RATE THAT SUPPORTED THAT PROPOSED BUDGET.

SO THIS SLIDE SHOWS THAT ON JULY 29TH WHEN WE DISCUSSED THE PROPERTY TAX RATES, THE M AND O FOR THE VOTER APPROVAL TAX RATE WAS 27 92.

AND THE PROPOSED TAX RATE WAS ALSO 27 92.

THE INTEREST IN SINKING OR I N S TAX RATE 1901 UNDER VOTER VOTER APPROVAL TAX RATE.

AND THE PROPOSED, UH, TAX RATE WAS ALSO 1901.

SO COMBINED TOGETHER, THE PROPERTY TAX RATE WAS PROPOSED AT EXACTLY

[00:50:01]

IT WAS SLIGHTLY HIGHER THAN THE NO REVENUE TAX RATE OF 44 74, BUT IT WAS LOWER THAN THE CURRENT TAX RATE.

SO THIS IS WHAT WE PRESENTED TO COUNCIL ON JULY 29TH.

SO WHEN YOU INCORPORATE THE DEBT DEION STRATEGY AS AN OPTION TO, TO UM, MANAGE THE TAX RATE NEXT YEAR, AND IF COUNSEL WAS TO APPROVE THE RESOLUTION TO ADD TO THE DEBT OBLIGATION FOR NEXT YEAR BY $2.3 MILLION THAT MARK TALKED ABOUT, THE TAX RATE NEXT YEAR WILL BE EXACTLY THE SAME AS THE VOTER APPROVAL TAX RATE OF 50 82.

SO IF WE WERE TO DO THE DEBT DEVIANCE, THE I N S RATE WILL BE 2291 M AND O RATE WOULD BE 27 91 AND COMBINED TOGETHER IS 50 82.

NOT TO BE MAKE SURE ABSOLUTELY CLEAR, IF COUNSEL WAS TO MOVE FORWARD WITH THIS, DEFEAT THIS OPTION, SINCE WE'RE INCREASING THE I N S RATE ONLY AND THE TOTAL TAX RATE IS EXACTLY THE SAME AS THE VOTER APPROVAL TAX RATE, A REQUIRED ELECTION TO GET VOTER APPROVAL WILL NOT BE NECESSARY OR REQUIRED 'CAUSE WE'RE KEEPING THE TAX RATE AT THE SAME LEVEL AS THE VOTER APPROVAL TAX RATE, BUT WE'RE TAKING AWAY FROM OUR MAINTENANCE AND OPERATIONS.

IS THAT HOW WE BALANCE IT? THAT'S WHAT I'M ASKING.

THAT'S CALCULATED BASED ON THAT, THAT TAX, UH, 3.5%.

YOU CAN SEE THAT ON THE SLIDE.

SO CURRENT TAX RATE 50 82 VOTER APPROVAL TAX RATE 50 82.

AND IF COUNSEL WAS TO ADOPT THE RESOLUTION FOR THE DEBT DEFE, THE TAX RATE WILL BE 50 82.

NO ELECTION REQUIRED.

SO ON JULY 29TH, WE ALSO SHARED WITH YOU THE AVERAGE HOME TAX TAXABLE VALUATION AND THE AVERAGE TAX BILL.

SO FOR AN AVERAGE HOMEOWNER IN KYLE, TEXAS, THE VALUE IN 2022 WAS $337,610.

THAT SAME AVERAGE HOME VALUE IN 2023 WAS 356 AND $31.

THAT WAS AN INCREASE OF 5.46% OR $18,421.

SO YOU WILL SEE ON THIS SLIDE THAT WE HAVE COMPARED WHAT AN AVERAGE HOMEOWNER IN KYLE TAXES THEIR TAX BILL WOULD BE IF THE 46 93 WAS APPLIED TO, TO THE 2023 VALUE AFTER THE HOMESTEAD REDUCTION, THE NET TAX BILL WOULD BE 1483 AND 13 CENTS AS COMPARED TO WHAT THE TAX BILL WAS IN THE YEAR PRIOR.

SO THAT'S WHAT WE SHARED WITH COUNSEL ON, ON 29.

SO IF YOU WERE TO TAKE THE DFE OPTION, SO ON THIS SLIDE, THE NUMBERS ARE, ARE NEW.

YOU HAVE NOT SEEN THIS BEFORE.

THE FIRST LINE SHOWS WITH THE DFE THAT MARK TALKED ABOUT, AND WE, THE COUNCIL DECIDE TO KEEP THE RATE AT 50 82 FOR THE SAME HOMEOWNER WITH A TAX AVERAGE HOME VALUE OF $356,031.

THE AFTER APPLYING THE HOMESTEAD REDUCTION, THE AVERAGE NET TAX BILL WILL BE 1000 6 0 6 AND 7 CENTS AS COMPARED TO THE PROPOSED TAX RATE THAT WE DISCUSSED ON JULY 29 IN THE CITY MANAGER'S PROPOSED BUDGET OF 46 93, SAME AT HOME AVERAGE VALUE OF 3 56 USING THE 46 93 AS THE TAX RATE.

THAT TAX BILL IS 1483 AND 13 CENTS.

SO THE DIFFERENCE BETWEEN THE TWO TAX RATE IS $122 AND 94 CENTS FOR AVERAGE HOMEOWNER AND KYLE TAXES.

SO THIS IS BASICALLY THE SLIDE THAT, THAT, UH, BRIAN WAS REFERRING TO EARLIER.

SO WITH THAT, THE, THE NEXT PART OF OUR PRESENTATION OR YOU WERE GONNA ADD SOME WELL, I WAS JUST GONNA SAY, UH, AGAIN, I THINK THAT'S, UH, AGAIN, THE POLICY QUESTION.

I WANNA MAKE SURE I HIGHLIGHTED THAT FOR YOU ON, ON WHAT PEOPLE WILL PAY VERSUS THE RATE.

[00:55:01]

UM, IF THERE'S ANY QUESTIONS ON THAT, WE CAN TRY TO ANSWER THAT.

THE NEXT PART OF THE PRESENTATION IS GOOD INFORMATION.

UM, BUT IF YOU GUYS WANT TO GO THROUGH ALL THAT ON THE LEGAL BASIS FOR THIS, WE, WE, WE CAN, BUT UM, YOU KNOW, ESSENTIALLY WE'VE LOOKED AT THAT BECAUSE OF PASSING THE RESOLUTION.

UM, IT IS A LEGAL, UH, THING TO DO FOR THE, FOR THE COUNCIL.

I THINK THERE WAS QUESTIONS ABOUT THAT.

WE SPENT A LOT OF TIME WITH STEPHANIE AND PAIGE AND UM, YOU KNOW, THEY HAVE SOME INFORMATION HERE.

QUESTIONS.

I DO HAVE A QUESTION.

I DON'T KNOW IF WE HAVE THE ANSWER FOR THIS.

SO I KNOW THE PERCENTAGE THAT HOMEOWNERS PAY IN GENERAL FOR THE TAXES, THE CITY OF KYLE ONLY MAYBE LIKE 20% OR SOMETHING LIKE THAT.

RIGHT? THIS IS JUST 20% OF WHAT THEY PAY IN TOTAL.

DO WE KNOW IF THE RATE, AND I DON'T KNOW HOW THEY HANDLE THIS, WILL INCREASE FOR THE COUNTY OR THE SCHOOL DISTRICT? BECAUSE WHAT I'M THINKING NOW IS LIKE $122 MAY NOT BE A LOT FROM US, BUT I DON'T KNOW HOW MUCH THEY ARE CHARGING AND I DON'T KNOW WHAT THE OVERALL PICTURE WILL BE FOR A HOMEOWNER.

, IS THAT SOMETHING WE KNOW? WE DO NOT AT THIS POINT.

WE ARE KIND OF AHEAD OF EVERYBODY ELSE.

OH, .

UH, SO WE DO NOT KNOW WHAT THE SCHOOL TAXES WILL BE OR A C C OR HAY COUNTY AT THIS POINT.

WELL I I DO KNOW ON THE, THE SCHOOL TAX ISSUE, I BELIEVE, AND, AND GUYS CORRECT ME IF I'M WRONG, THERE'S A, UH, A HOMESTEAD EXEMPTION INCREASE THAT'S GONNA BE ON THE BALLOT I THINK IN NOVEMBER FOR, FOR TEXAS TO CONSIDER.

AND IF YOU DO THAT AND THEN THAT WOULD THEORETICALLY LOWER THE TAXES FOR, UH, ALL PROPERTY OWNERS ACROSS THE, THE STATE OF TEXAS.

AND I WAS IT ANOTHER, I'M TRYING TO REMEMBER OFF, OFF MEMORY.

40,000 IS IT? NO, IT'S GONE.

SO A HUNDRED GOES TO A HUNDRED THOUSAND, IS THAT RIGHT? FOR THE, FOR THE SCHOOL DISTRICTS, IT'S KIND OF A TWO-PRONGED APPROACH THAT THE LEGISLATURE PROVIDED.

AND SO HOMESTEAD EXEMPTIONS FOR SCHOOL DISTRICT TAXES ARE GONNA RISE FROM $40,000 TO A HUNDRED THOUSAND DOLLARS.

AND THEN THE LEGISLATURE ALSO SET ASIDE SOME ADDITIONAL MONEY FOR THE SCHOOL DISTRICTS TO LOWER THEIR TAX RATE.

AND SO FOR SCHOOL DISTRICTS, IT'S GONNA BE A TWO-PRONG APPROACH AND TAX BILLS THAT ARE GONNA GO OUT NAIL, UM, BEFORE THE NOVEMBER ELECTION OR GOING OUT TO THE TAXPAYERS WITH THE ASSUMPTION THAT THE HOME A HUNDRED THOUSAND DOLLARS HOMESTEAD EXEMPTION IS APPROVED BY THE VOTERS IN NOVEMBER.

AND THEN IF THAT ELECTION FAILS, THEN THE COUNTY WILL HAVE TO SEND OUT SUPPLEMENTAL TAX BILLS TO HOMEOWNERS TO COVER THE DELTA BETWEEN THE TWO.

WHEN DO WE NEED TO MAKE THIS DECISION? 'CAUSE NOW I'M THINKING ABOUT THE OVERALL PICTURE.

I KNOW WE'RE JUST A LITTLE 20%.

UM, BUT IS IT POSSIBLE IF WE TALK ABOUT KEEPING THINGS THE SAME, NOT NECESSARILY THE RATE, BUT IT SAYS IN 2022 THE AVERAGE TAX POST IS 15 12 45.

IS IT POSSIBLE TO KEEP THAT BILL THE SAME AND KIND OF CREATE A RATE TOWARDS THAT? SO THERE'S THERE'S A TRUE NO CHANGE.

I CAN BE AND, AND IT'S A DIFFERENCE OF $29 AND 32 CENTS.

YEAH, SO, SO THE, UM, THERE'S A LOT OF THINGS GOING ON IN THE HOUSING OF NEW HOMES COMING INTO THE MARKET AND THOSE KINDS OF THINGS, WHICH KIND OF MAKES THIS NOT A REAL APPLES TO APPLES COMPARISON.

THE NO NEW REVENUE RATE IS THE RATE THAT'S BEEN CALCULATED TO SHOW NO REVENUE INCREASES.

THAT'S THE 44 CENTS.

UM, THAT MAY BE A SLIDE OR TWO BEFORE THIS ONE.

UH, BUT THAT'S THE NO NEW REVENUE RATE THAT YOU WOULD NEED TO HAVE NO CHANGE IN PROPERTY TAXES AT ALL.

BUT YOU WOULD COLLECT THE SAME AMOUNT OF MONEY AS YOU COLLECTED THE PRIOR YEAR BASED EVEN THOUGH THE VALUES CHANGED.

DOES THAT ANSWER YOUR QUESTION? WELL, LET ME ASK YOU THIS WAY.

SO IT LOOKS LIKE FOR 2023, THE AVERAGE NET TAX BILL IS $1,483 AND 13 CENTS.

LAST YEAR WAS $1,512 AND 45 CENTS.

CAN WE RATE, CAN WE, CAN WE MAINTAIN THAT AMOUNT MM-HMM.

SO THIS YEAR, INSTEAD OF PAYING 14 83 13, WE KEEP IT THE SAME AT 15, 12 45 AND THEN WORK AROUND THAT IN PAYING OFF THE DEBT.

YEP.

SO NOBODY SEES A CHANGE IN THEIR BILL, IT DOESN'T INCREASE AND THE RATE STAYS REASONABLY.

SO IT'S BASICALLY DOING THIS A RATE THAT MAKES SURE THAT THE AMOUNT THAT THE HOMEOWNER'S GONNA PAY FROM THE CITY PORTION IS THE SAME.

WELL, AND THIS IS JUST THE RESIDENTIAL PROPERTIES TOO.

SO WE WILL ADJUST THE RATE DEPENDING ON THE AMOUNT THEY WILL PAY.

WE, WE WOULD HAVE TO HAVE A DFE THAT WOULD MATCH THAT LEVEL OF REVENUE AND IT WOULD BE, YOU KNOW, SUBSTANTIALLY LESS THAN THE 2.3 MILLION.

UH, WE'D HAVE TO DO THE CALCULATIONS TO SEE WHAT THAT WOULD BE, UM, WE, IF THAT'S THE COUNCIL DIRECTION, WE COULD TRY TO DO THAT.

WOULD, WOULD THERE NOT BE A HUGE VARIABLE WITH THE NO.

NOT KNOWING THE APPRAISALS OF THE HOMES.

I MEAN, I, I FEEL LIKE IT WOULD BE IMPOSSIBLE TO TRY TO FIGURE THAT OUT.

OH, I SEE WHAT YOU'RE SAYING.

KEEPING ALL OF IT THE SAME.

[01:00:01]

THIS IS SINGLE FAMILY HOMES.

SO IT DOESN'T INCLUDE, UH, MULTIFAMILY, COMMERCIAL PROPERTIES, ALL THOSE KIND.

THAT'S WHAT THE NO NEW REP, THAT'S WHAT I WAS TRYING TO DISCUSS WITH THE NO NEW, NO, I THINK WHAT ASHLEY'S TRYING TO SAY, THOUGH, OR COUNCIL MEMBER BRADSHAW IS TRYING TO SAY IS IT'S HARD TO AVERAGE THAT OUT PER HOUSEHOLD AS OPPOSED TO, OH YES.

SOME PEOPLE ARE GONNA PAY MORE OR LESS DEPENDING ON WHAT THEIR VALUES ARE.

THAT'S CORRECT.

SO WHEN I'M LOOKING AT THE TABLE, IT'S, IT, I DON'T KNOW WHERE YOU GOT THE AVERAGE HOME VALUES, BUT PEOPLE WERE TAXED BASED OFF THEIR APPRAISED VALUE.

WHICH GENERALLY IS HIGHER THAN THE MARKET VALUE SOMETIMES ON COMPS SOLD.

SO THESE NUMBERS LOOK LOW COMPARED TO THE LISTINGS.

I SEE.

THE, THESE ARE THE TAXABLE VALUES.

THESE ARE TAXABLE.

AND THIS COMES FROM HAYES COUNTY.

THEIR CALCULATIONS AFTER THEY LOOK AT ALL OF THE HOMES, WHAT THEIR APPRAISED TAXABLE VALUES ARE, AND THEN THEY AVERAGE THOSE BACK TO GIVE US THESE NUMBERS.

VEZ, MAY I ADD ONE THING ON, ON THE SCHOOL TAX RATE? YES.

NO.

UM, SO GO AHEAD.

A FEW YEARS AGO, UM, THE, UH, LEGISLATURE RAISED THE, UH, HOMESTEAD FROM I THINK 15 TO 40 OR 25 TO 40.

AND IT, IT DOES TAKE A CONSTITUTIONAL AMENDMENT, BUT IT PASSED SO OVERWHELMINGLY BECAUSE WHO'S GONNA GO TO THE VOTE, VOTE TO, TO RAISE THEIR TAXES, THIS IS ACTUALLY GOING TO VOTE TO LOWER TAXES.

SO IT'S BELIEVED JUST LIKE LAST TIME THAT IT WILL PASS OVERWHELMINGLY.

SO WE DON'T THINK THERE'S GOING TO BE A SUPPLEMENTAL BILL HAVING TO GO OUT IN JANUARY.

UM, ASSUMING ALL OF THAT PLAYS OUT, SCHOOL TAXES ARE GOING TO BE COMPRESSED THEMSELVES BY ABOUT 10 TO 12 CENTS.

SO SCHOOL TAXES ARE GONNA GO FROM ROUGHLY A HUNDRED, A BUCK, 35 BUCK 25 DOWN BY ABOUT 10% THEMSELVES.

SO IT'S A, IT IS A BIG NUMBER.

I GUESS I NEED TO ASK ANOTHER QUESTION.

SO IF WE DID THE DFE, UM, AND YOU SAID WE'RE, WE COULD BASICALLY PAY OFF TO RECALL TWO AND A HALF MILLION DOLLARS, UM, FOR ONE YEAR, UM, BUT THEN WE ISSUE MORE DEBT, WASN'T, WON'T THAT NEGATE THE ADVANTAGE OF TRYING TO MAINTAIN THE LEVEL TAX RATE? 'CAUSE WHAT'S GONNA HAPPEN AND THEN IN THE FUTURE AFTER THAT? WELL, IF WE'RE ISSUING ANOTHER 200 MILLION IN A TIMEFRAME OF ANOTHER FIVE YEARS, WHICH IT NORMALLY TAKES TO COMPLETE A PROJECT, SO WHAT HAPPENS THEN DOWN THE ROAD? YOUR, YOUR TAX RATE IN THEORY IS GOING TO BE HIGHER.

I MEAN, IT'S GONNA BE, IF YOU DO THIS, YOUR, YOUR TAX RATE'S GONNA BE LOWER THAN IT WOULD OTHERWISE BE.

BECAUSE YOU'RE PAYING IT DOWN, BUT IT'S GOING, YOU KNOW, YOU'RE, YOU'RE, YOU'RE PAYING OFF A SMALL PORTION AND GONNA REPLACE IT WITH A LOT BIGGER PORTION.

AND THAT'S WHY, YOU KNOW, WHEN WE DID THE PROFORMA AND PROJECTIONS ON THE BOND ISSUE, IT LOOKED LIKE A 59, THAT IT WOULD TAKE 59 CENTS TO GET TO MM-HMM.

WELL, NOW WE THINK IT'S GONNA BE CLOSER TO THE 55 CENTS BECAUSE WE DON'T EXPECT 20% GROWTH YEAR OVER YEAR, OVER YEAR.

BUT WE, WE GOT IT THIS PAST YEAR MM-HMM.

, SO, YOU KNOW, PROJECTIONS, THE OUTPUTS ARE ONLY AS GOOD AS THE INPUTS.

UM, BUT WE KNOW IF WE TAKE OUT OUR FUTURE DEBT, THAT LEAVES A HOLE THAT IS REPLACED WITH NEW DEBT LATER ON.

IS THAT, SORRY, IS THAT NEW DEBT IN YOUR CALCULATIONS? PEREZ? NOT ON THE TAX RATES.

WE'RE ONLY LOOKING, THE TAX RATE ONLY LOOKS AT NEXT YEAR.

SORRY.

SO WHEN WE THINK ABOUT THESE, UH, YOU KNOW, THE TAX RATE, ARE WE THINKING ABOUT DEBT THAT WE'RE GONNA INCUR IN THE FUTURE AS WELL? AND SHOULD WE BE, WE CAN ONLY SET THE TAX RATE FOR NEXT YEAR, THIS YEAR? YEAH.

IT GOES FROM 1483 TO 1600, BUT WHAT WE'RE DOING IS ULTIMATELY SAVING FOLKS LONG-TERM.

I THINK THAT'S WHY IT'S A POLICY DECISION BECAUSE IT'S THE, THE ACCOUNTING, YOU KNOW, DOESN'T TAKE THOSE FUTURE DEBTS INTO CONSIDERATION WHEN THEY SET THEIR RATE.

WE KNOW FOR A FACT THAT A LARGE AMOUNT OF FUTURE DEBT IS COMING.

AND SO THE QUESTION IS, DO WE WANT TO KEEP THE RATE THE SAME IN PREPARATION? LIKE IT'S A, IT'S A PRUDENT THING TO DO FROM THE STANDPOINT OF PLANNING, BECAUSE IF YOU THINK OF THE TAX BILL, YES,

[01:05:01]

UH, BUT THE, THEY, BUT WE HAVE TO DO, WE HAVE TO MAKE THAT PROACTIVE DECISION NOW, UH, IN ORDER TO MAKE THAT HAPPEN.

SO, UH, I, I'M JUST ON THE SIDE OF, BECAUSE I KNOW THAT WE HAVE, UH, A LOT OF ROAD BOND DEBT COMING.

I THINK IF WE'RE COMMITTED TO BUILDING A COMMUNITY CENTER, THIS IS THE STRATEGY THAT HELPS US TO EXECUTE THAT IN THE BEST POSSIBLE WAY.

IF DOWN THE ROAD WE DECIDE, YOU KNOW WHAT, WE'RE NOT GONNA DO A COMMUNITY CENTER.

WE'RE WE'RE, WE'RE GONNA SLOW DOWN ON OUR DEBT, THEN WE DON'T DO THE DFE IN LET'S SAY YEAR THREE, THEN THE TAX RATE JUST DROPS.

AND ALL WE DID WAS SAY, FOLKS, A LITTLE FUTURE INTEREST ALONG THE WAY.

AND, UH, YOU KNOW, THEY GET A, A MASSIVE TAX DROP, BUT I JUST DON'T SEE THAT AS BEING THE, THE PATH THAT WE'VE AT LEAST INDICATED THAT WE'RE GOING ON.

SO FOR ME, IT'S A CONNECTION.

IF WE'RE GOING FOR A 2024 COMMUNITY CENTER BOND, THIS MAKES THAT MORE ACHIEVABLE.

IF WE ARE NOT GOING FOR A 2024 COMMUNITY CENTER BOND, THEN THE TAX INCREASE THAT WE'LL HAVE TO DO IN TWO TO THREE YEARS WILL JUST BE FOR ROADS.

AND THAT'LL PROBABLY BE FINE.

WHY WASN'T THE STRATEGY DONE FOR THE ROAD BOND DOUBTS? 290 MILLION.

THAT WOULD'VE BEEN NICE TO HAVE THIS STRATEGY SHOWN, RIGHT? UH, WHEN THE ROAD BOND WAS DONE.

THE DEFICIENT STRATEGY.

I DON'T, I DON'T THINK THAT THAT WAS A YEAR OR TWO AGO.

THE DEFICIENT STRATEGY IS REALLY, IN MY OPINION, IS ABOUT THE COMMUNITY CENTER BOND.

FOR ONE, WE DIDN'T KNOW THAT THE TAX RATE WAS GONNA COME DOWN THE WAY THAT IT IS BEING FORCED TO.

WELL, AND MAYOR, UM, THAT'S EXACTLY RIGHT.

BUT AGAIN, THE PLANS, THE THOUGHT WAS $70 MILLION WORTH OF BONDS ISSUED IN YEAR ONE FOR THE STREETS.

WELL, WE COULDN'T, IT TURNED OUT WE COULDN'T SPEND IT FAST ENOUGH.

SO WE DIDN'T BORROW 70, WE, WE DID 45.

SO IF WE DID THE 70, WE'D BE AT THAT CLOSE TO THAT 50 82, WE'D BE THERE RIGHT NOW.

INTEREST WITH THE EXPECTATION OF THAT.

YOU SAID 70 MM-HMM.

BUT THE STRATEGY IS, INSTEAD OF BORROWING IT NEEDLESSLY AND PAYING MORE INTEREST MM-HMM.

, WE'RE NOT BORROWING IT, SAVING THE INTEREST AND THEN PAYING OFF OTHER DEBT FASTER TO MATCH IT ALL UP WITH THE NUMBERS FISCALLY IT'S A STRONG PLAN, BUT THE ARGUMENT CAN BE MADE THAT WE'RE, WE'RE, WE, WE HAVE DEBT THAT'S NOT DUE THAT WE'RE HAVING TO TAX PEOPLE FOR IN ORDER TO PAY IT EARLY.

AND THAT IS A, THAT'S A PHILOSOPHICAL QUESTION THAT EVERYONE HAS TO DECIDE FOR THEMSELVES.

IT'S, IT'S ONE OF THOSE THINGS, EVENTUALLY THE TAXES WILL COME UP.

AND SO IF IT IS IN 2025 OR 2026, IT WILL BE THE COUNCIL THAT IS SITTING, THEN THAT WILL HAVE TO BE FACING WITH THE, THE TENCENT INCREASE.

'CAUSE IT, WE'RE GONNA HAVE TO RAISE IT POSSIBLY JUST TO START PAYING FOR THE BONDS, FOR THE ROADS.

WE KNOW IT'S COMING.

SO DO WE WANNA MAKE IT THAT INCREASE A LITTLE EASIER AND MAYBE PAY THAT? AND THEN MAYBE THE INCREASE WOULDN'T BE AS MUCH JUST ON THE RATE? OR DO WE JUST KEEP IT LOW AND THEN LET WHOEVER IS SITTING IN THERE, IN HERE IN THREE YEARS DEAL WITH THE UP ROAD? WELL, I AGREE WITH WHAT YOU'RE SAYING AS LONG AS WE'RE NOT INCLUDING NEW DEBT.

SO IF WE'RE PUTTING A HUNDRED MILLION DOLLARS BOND OUT THERE, WHAT YOU'RE SAYING DOESN'T REALLY CORRELATE TO FUTURE.

LIKE IT'S, WE'RE IT'S GONNA GO UP.

'CAUSE NOW WE'RE TALKING POSSIBLY A HUNDRED MILLION DOLLAR BOND.

SO EVEN IF WE PAY 2 MILLION, SAY WE PAY 10 MILLION, WHAT DOES THAT DO WHEN YOU HAVE A HUNDRED MILLION DOLLARS BOND COMING ON BOARD? I AGREE.

I DON'T THINK THAT WE SHOULD TIE IT TO THE COMMUNITY CENTER.

I THINK THAT THAT IS, I DON'T, I DON'T THINK THAT IT SHOULD BE ASSOCIATED LIKE THAT.

IT SHOULD BE LOOKED AT LIKE, ARE WE DOING THIS TO A SAVE MONEY AND INTEREST AND B, CREATE A MORE SUSTAINABLE TAX RATE IN THE LONG RUN? IT DOESN'T HAVE TO BE THE COMMUNITY CENTER CONCEPT.

JUST PRINCIPALLY WE'RE GONNA HAVE FUTURE EXPENSES THAT WE NEED TO PROVIDE FOR THE CITY, WHETHER IT'S OTHER INFRASTRUCTURE PROJECTS OR AMENITY RELATED PROJECTS.

IT DOESN'T HAVE TO BE THIS COMMUNITY CENTER, BUT THERE ARE THINGS THAT WE'RE GONNA HAVE TO DO TO SUPPORT OUR RESIDENTS IN THE FUTURE.

AND WHATEVER THAT IS, WHETHER IT'S A COMMUNITY CENTER, UH, OR A REC CENTER, WHATEVER YOU WANT TO CALL IT, OR, YOU KNOW, FUTURE ROAD PROJECTS WE'RE GONNA HAVE TO BORROW.

SO WHATEVER IT IS THAT WE'RE GONNA HAVE TO BORROW IN THE FUTURE, DOING THIS, FROM MY UNDERSTANDING, WOULD PUT US IN A BETTER POSITION TO NOT ONLY MANAGE THE TAX RATE INCREASE.

SO IT'S NOT GOING FROM SOMETHING THAT'S, THAT'S LOWER THAN EXPECTED TO A SKYROCKETED NUMBER, BUT ALSO IT'LL ALLOW US TO BORROW, UH, TO BE IN A BETTER POSITION TO BORROW NEW MONEY.

IS THAT ACCURATE? ASHLEY'S, ASHLEY'S NOT WRONG EITHER.

LIKE, SO THE PRIMARY REASON IS STABILITY OF THE TAX RATE AND SAVING ON

[01:10:01]

WE KNOW WITHOUT THE COMMUNITY CENTER THAT WE HAVE FUTURE DEBT ISSUANCES COMING.

THE REASON THAT I BRING THE COMMUNITY CENTER UP IS BECAUSE I THINK IN MY MIND, IF WE DIDN'T GO THIS PATH, WE'RE STILL GONNA BUILD THOSE ROADS.

SO THERE'S GONNA BE MOST LIKELY ENOUGH POLITICAL WILL TO RAISE THAT RATE UP.

'CAUSE WE PROMISED THAT WE WERE GONNA BUILD THESE ROADS IN THE FUTURE.

BUT WHAT GETS PUT IN JEOPARDY IS IF YES, WE'RE GONNA RAISE THAT RATE UP TO BUILD THOSE ROADS, BUT THEN IF WE'RE RAISING THAT RATE UP TO BUILD THOSE ROADS PLUS A COMMUNITY CENTER, IT'S, IT'S GONNA PUT WHATEVER, IT'S GONNA PUT THAT FUTURE COUNCIL IN A BOND IN ORDER TO MAKE THAT MAKE THAT PITCH.

THIS IS A SITUATION WHERE WE CAN KEEP EVERYTHING LEVEL NOW, SAVE ON THE INTEREST AND FROM TO BEAR'S POINT, CREATE THAT CAPACITY SO THAT THE DECISION TO TAKE THE COMMUNITY CENTER PROPOSAL TO THE VOTERS AND THEN ACTUALLY DELIVER IT.

AND EASIER.

WE DON'T KNOW NOVEMBER'S A WHOLE NEW MONTH, A WHOLE NEW COUNCIL PROBABLY, WHO KNOWS.

BUT EVEN IN TWO YEARS, WE DON'T KNOW WHAT THEY'RE GONNA WANNA DO.

AND THE TRUTH OF THAT MATTER IS WE SHOULDN'T BE MAKING THOSE KIND OF SOLIDIFIED PLANS FOR A COUNCIL THAT MAY NOT WANNA DO THAT WELL.

BUT AS A A HOMEOWNER, AS A HOMEOWNER IN TWO YEARS, I WOULD HATE TO SEE A HUGE SPIKE ON MY TAX RATE.

SO IF I CAN KIND OF INCREASE IT, IT'S LIKE WE WERE DISCUSSING EARLIER TODAY, WHEN YOU MAKE THE, WHEN WE MAKE THE CONTRACTS FOR THE WATER, YOU KNOW, YOU HAVE A CERTAIN AMOUNT OF PERCENTAGE THAT INCREASES EVERY YEAR.

DO YOU WANT THAT TO BE 8% EVERY YEAR OR DO YOU WANNA HAVE A RATE RIGHT NOW AND THEN IN TWO YEARS YOU PAY 10% MORE? THAT, THAT'S THE WAY I'M SEEING IT.

DO WE WANNA SOFTEN IT UP RIGHT NOW AND HAVE IT STEADY PAY THAT AND CREATE CAPACITY? 'CAUSE WE DON'T KNOW IF WE COME UP WITH AN EMERGENCY AND WE HAVE TO CALL FOR, YOU KNOW, BORROW MONEY FOR ANY OTHER THING.

BUT AT THE SAME TIME, DO WE KNOW WHAT THE REVENUE IS GONNA BE NEXT YEAR AND MAYBE NEXT YEAR WE DON'T HAVE TO INCREASE IT OR THE YEAR AFTER IS, IS WOULDN'T BE THAT BIG OF AN INCREASE TO, SO I, I'VE YET TO HEAR ANYTHING ABOUT A BIG SPIKE, UH, THAT'S GONNA, THAT'S PLANNED.

I MEAN, WE KNOW IT'S GONNA INCREASE, BUT I DON'T WANNA MAKE DECISIONS BASED ON, YOU KNOW, FEAR-BASED DECISIONS.

SO I'M NOT DONE TALKING.

UM, UH, SO I, I WOULD BE A LITTLE MORE CONFIDENT MAYBE MOVING FORWARD IF PEREZ SAID THERE IS GONNA BE A BIG SPIKE AND WE SHOULD DO THIS.

BUT I THINK WE'RE ALL A LITTLE HESITANT BECAUSE WE DON'T KNOW, WE DON'T KNOW THE, THE VALUE.

I MEAN, ALSO WE COULD, WHAT HAPPENS IF ALL THE VALUATIONS OF THE HOUSES GO DOWN AND NOW WE CAN'T PAY THAT? LIKE THERE'S, IT'S JUST A BIG RISK AND I DON'T THINK I'M COMFORTABLE, UM, FOR ONE, MAKING DECISIONS BASED NOT OFF OF, UH, OF THE RESIDENTS.

UM, FEEDBACK.

I THINK IT WOULD BE GOOD TO PUT THAT TO A, A VOTE TO THEM.

UM, IT'S REALLY HARD TIMES RIGHT NOW.

INFLATION IS HIGH.

I DON'T THINK PEOPLE CAN AFFORD TO CONTINUOUSLY KEEP PAYING INCREASES IN NOT JUST THEIR, THEIR HOME VALUATIONS, BUT YOU ALSO HAVE IN FOOD AND EVERYWHERE ELSE.

UM, AND YOU BROUGHT UP A GREAT POINT EARLIER, UM, COUNCIL MEMBER PARSLEY IS WE DON'T KNOW WHAT THE REST OF THE TAXES ARE GONNA LOOK LIKE.

WE ARE JUST A LITTLE BIT A PIECE OF THAT PIE.

AND I KNOW WE JUST HAD A HUGE SCHOOL BOND WAS $300 MILLION.

AND SO, UM, BEING THOUGHTFUL TO THE RESIDENTS ALTOGETHER, I DON'T THINK IT'S FAIR TO MAKE, UM, AN INCREASE IN THEIR TAXES.

I WOULD BE OKAY SUSTAINING, WHICH I DON'T THINK WE CAN DO, BUT I WOULD BE OKAY WITH DOING THAT.

BUT IT'S JUST A REALLY TOUGH TIME FOR A LOT OF PEOPLE RIGHT NOW.

AND I DON'T THINK IT'S A, A WISE TIME TO, UH, INCREASE TAXES SPEAKING AS SOMEONE WHO, UH, IS HAVING A TOUGH TIME.

LIKE EVERY, ALL THE OTHER RESIDENTS WE'RE DISCUSSING HERE.

UH, I MEAN THE, THE ISSUE AS I SEE IT IS, ARE WE LOOKING, ARE WE PLANNING TO BE HERE LONG TERM? DO WE WANNA MAKE DECISIONS THAT ARE IN OUR BEST FINANCIAL INTEREST LONG TERM? AND THAT'S HOW I SEE, I DON'T THINK, I'M NOT SITTING HERE WEIGHING LIKE, HOW CAN I MAKE LIFE EASIER FOR A COUNCIL IN THREE YEARS? I'M THINKING IT'S DIFFICULT NOW.

IT'S GONNA BE DIFFICULT NEXT YEAR AND THE YEAR AFTER AND THE YEAR AFTER LIFE GETS MORE DIFFICULT WITH EVERY PASSING DAY.

SO IF WE'RE GONNA SIT HERE AND, AND HAVE A CONVERSATION ABOUT THIS AND THINK THAT THIS DECISION IS MONUMENTALLY GONNA CHANGE THE WORLD, IT'S NOT.

BUT WHAT IT WILL DO IS PUT US ON A BETTER PATH TO BE MORE FINANCIALLY RESPONSIBLE IN THE FUTURE BECAUSE WE'RE NOT DONE GROWING.

MORE MONEY WILL HAVE TO BE BORROWED IN THE FUTURE.

AND THIS IS, THIS IS THE RUB OF IT ALL IS DO PEOPLE.

AND IF YOU PUT IT TO VOTERS AND SAY, YOU CAN PAY LESS TODAY, BUT YOU'RE NOT GONNA GET X, Y, OR

[01:15:01]

Z IN FIVE YEARS, IN 10 YEARS, YOU, YOU KNOW, HAVING LIVED HERE, YOU'RE NOT GONNA BE HAPPY PEOPLE.

YOU KNOW, WHEN I HEARD FROM HUNDREDS AND HUNDREDS OF PEOPLE FACE-TO-FACE CONVERSATIONS ABOUT HORRIBLE ROADS AND WE, AND THEY SAID, YES, YOU CAN RAISE OUR TAX RATE TO PAY FOR THAT.

YOU, AND THE WAY THAT I LOOK AT IT IS IF YOU GUYS ALREADY PROJECTED TO POTENTIALLY GO UP TO, WHAT, 56 CENTS? IS THAT CORRECT? 55 CENTS IF WE KEEP IT AT 46 AND THEN WE HAVE TO JUMP IT UP AT 10, UH, 10 CENTS OR ROUGHLY 10 CENTS THAT AT THAT, THAT POINT IN TIME IS GONNA BE A SIGNIFICANT ADJUSTMENT FOR EVERYONE'S BUDGET ON A YEAR TO YEAR BASIS.

THAT IS WHAT I DON'T WANT TO DO.

'CAUSE I'M PROBABLY IN THE CAMP OF THINKING LIKE, YEAH, I'LL TAKE IT EASIER TODAY IF, IF I CAN MAKE MYSELF, IF I CAN MAKE TODAY EASIER THAN I'LL SACRIFICE THE FUTURE.

BUT THAT'S, THAT'S ME PERSONALLY AND GREAT SPEECH.

I THINK WE NEED TO BE LOOKING AT THIS BIGGER PICTURE.

NONE OF THIS IS COMFORTABLE, DON'T GET ME WRONG.

THIS, THIS IS LIKE, HONESTLY THE HARDEST THING THAT I'VE HAD TO DO IS, IS WEIGH THIS BECAUSE, YOU KNOW, WE'RE, WE'RE, WE'RE NOT DONE.

LIKE THERE'S A LOT MORE WORK TO BE DONE TO COMPLETE WHAT THIS CITY NEEDS TO LOOK LIKE TO BE THE BEST FOR THE PEOPLE WHO LIVE HERE.

I DON'T THINK THAT DANIELLE GOT HER QUESTION ANSWERED.

, WHEN DO WE NEED, WHAT IF, WHAT ARE YOU ALL LOOKING FOR AT THIS TIME AND WHEN DO WE NEED VOTE? WELL, SORRY.

YEAH, THE QUESTION WAS, UM, YOU KNOW, ESSENTIALLY WHAT'S THE TIMELINE FOR MAKING A DECISION LIKE THIS? SO LET'S GO TO SLIDE IF WE CAN SLIDE 18.

UM, UNLESS THERE'S ANY LEGAL QUESTIONS ON THE AUTHORITY OF DOING THIS.

I THINK WE'VE PROBABLY COVERED THAT ALREADY, BUT, UM, SLIDE 18.

THIS ONE.

GO BACK.

SO WE HAD A SCHEDULE FOR ADOPTING THE BUDGET TO CONDUCT THE, UH, PUBLIC HEARINGS.

UH, THAT WOULD'VE CONCLUDED ON AUGUST 24TH.

UH, THE NEW SCHEDULE IS, UH, IN THE RIGHT HAND COLUMN ON THE NEW DATE.

SO THAT WOULD HAVE THE BUDGET BEING APPROVED ON SEPTEMBER 19TH.

WE'RE ASKING THAT THE COUNCIL CONSIDER A RESOLUTION THIS EVENING ON WHETHER OR NOT YOU WANT TO DO THE DFE OR NOT.

UM, THAT WILL, THAT'S ON YOUR AGENDA.

I DON'T KNOW WHAT'S THE ABSOLUTE LAST POINT THEY COULD DO, UH, THAT VOTE, UH, AND MAINTAIN THE SCHEDULE.

SO I'LL ASK, I'LL DEFER TO EITHER STEPHANIE OR PAIGE ON THAT OF WHAT WOULD BE THE ABSOLUTE LAST DATE YOU COULD DO IT, BUT WE WERE WANTED YOU TO CONSIDER IT THIS EVENING PAGE SIGNED CITY ATTORNEY FOR THE RECORD, I'M GONNA, WOULD HAVE TO LOOK TO SEE WHAT THE ABSOLUTE LAST DATE IS TO MAINTAIN THIS SCHEDULE THOUGH, AND PERVEZ CAN CORRECT ME IF I'M WRONG.

WE WOULD NEED ACTION ON THE RESOLUTION THIS EVENING IN ORDER TO BE ABLE TO GET NOTICES IN THE PAPER FOR PUBLICATION ON THE 16TH.

THAT'S OUR FIRST DATE TO, TO PUBLISH.

UM, IF WE WERE TO, UM, NOT TAKE ACTION TONIGHT AND MAYBE SAVE IT FOR A MEETING NEXT WEEK, FOR EXAMPLE, THEN WE WOULD NEED TO CHANGE AT LEAST THE SEPTEMBER 5TH DATE AND PUSH THAT BACK AT LEAST A WEEK.

AND THERE'S SOME COMPLICATION BECAUSE THE, THE CHARTER REQUIRES AT LEAST ONE OF THE, UM, I BELIEVE PUBLIC HEARINGS TO BE ON A REGULARLY SCHEDULED MEETING DATE, IF I REMEMBER CORRECTLY.

SO, UM, THIS IS HITTING YOUR REGULARLY SCHEDULED MEETINGS FOR THE REST OF THE WAY OUT ON SEPTEMBER 5TH AND THE 19TH.

UM, I HAVE A QUESTION.

SO IT'S A LITTLE COMPLICATED.

I WISH I HAD A BETTER ANSWER FOR YOU, BUT IT, IT'S COMPLICATED WITH THE TAX CODE.

WE PLAN OUR BUDGET UNDER THE 0.5469 SOMETHING RIGHT? 46 93.

UM, SO IF WE WERE TO ADOPT THIS, UM, WE WOULD JUST HAVE TO ADJUST WHAT WE WILL BE PAYING.

OTHER THAN THAT WE WILL REMAIN WITH THE BUDGET AS WE HAVE IT.

'CAUSE THAT'S WHAT WE HAVE PLANNED.

WHAT I, HERE, HERE'S THE OTHER PART.

I'M NOT TRYING TO BE A PAIN, BUT IF, IF THE TAXES WILL GO, YOU KNOW, I DON'T KNOW HOW MUCH THE SCHOOL IS GOING TO BE CHARGING.

I DON'T KNOW HOW MUCH HIS COUNTY IS GOING TO BE CHARGING, BUT IF THEY GO UP AND, AND WE DON'T DO ANYTHING, IT'S NOT GONNA MAKE A HUGE DIFFERENCE FOR THE RESIDENTS 120 BUCKS.

'CAUSE THEY WILL STILL RAISE IT.

NOW IF, IF THERE IS A VOTER, IF THERE IS SOMETHING COMING UP DURING THE ELECTION TO LOWER THE RATE FOR THE SCHOOL BOARDS, YOU SAID, UM, THEN THAT WILL MAKE A HUGE DIFFERENCE ON RESIDENTS.

AND THEN I DON'T KNOW IF, IF THE 1 22 WILL MAKE IT, THE, THE TAX BILL FROM SCHOOL DISTRICTS IS GOING OUT WITH THE 10 CENT, 10 TO 12 CENT REDUCTION.

[01:20:01]

THE, THE GOVERNOR PAT, UH, I THINK SIGNED THE BILL LAST NIGHT.

SO IT IS GO, THE SCHOOL DISTRICT TAXES ARE GOING DOWN BY 10 TO 12 CENTS.

I HAVE A QUESTION.

UM, COUNCIL MEMBER HEISER TALKED ABOUT THE FUTURE GROWTH, WHICH WE ALL KNOW IS COMING AND HOPEFULLY IT BRINGS LOTS OF GOOD THINGS.

DOES THAT FUTURE GROWTH HELP OFFSET SOME OF THIS FUTURE DEBT OR MAYBE THE POSSIBLE FUTURE RATE? WOULD THAT ALSO HELP DECREASE IT? YEAH, SO WE'VE, WE'VE MADE ESTIMATES, UH, WORKING WITH MARK VE ON NEW, NEW CONSTRUCTION AND NEW GROWTH AND APPRAISED VALUE INCREASES IN ALL OF OUR PROJECTIONS OF WHAT THE RATE WOULD BE.

IF THE VALUE ENDS UP BEING HIGHER OR THE GROWTH IS HIGHER THAN WHAT WE PROJECTED, YES, IT WOULD HAVE A BENEFICIAL, UH, RELATIONSHIP WITH THE TAX RATE.

SO THE TAX RATE WOULD BE LOWER.

THOSE PROJECTIONS WOULD COME DOWN BECAUSE MY, MY, SOME OF MY HOPE FOR THE FUTURE IS THAT WE DON'T HAVE TO BOND OUT MORE ROADS.

I THINK THIS COUNCIL DID A REALLY GOOD JOB WITH THIS BOND COVERING THE MAJORITY OF THE ROADS.

AND SO MY HOPE FOR FUTURE COUNSEL, WHICH I CANNOT IMPOSE ON ANYBODY, WOULD BE THAT THEY MAINTAIN THE ROADS THROUGH CIPS INSTEAD OF BONDS.

AND A LOT OF THE, UM, ESPECIALLY WITH THE POSSIBLE INCREASE IN SALES TAX THAT THE CITY WOULD RECEIVE, UM, I THINK THAT'S DOABLE.

AND WE WOULDN'T NECESSARILY HAVE TO, UH, GO TO EVEN A 0.5, YOU KNOW, OH FIVE FIVE RATE.

SO I, I GUESS IT'S LIKE A DOUBLE-EDGED SWORD.

LIKE WE'RE TALKING ABOUT THE GROWTH AND HOW WE NEED TO PREPARE FOR IT.

AND THEN ON THE OTHER SIDE IS THAT GROWTH IS COMING AND WHAT IS, WHAT IS THAT GONNA BRING THE CITY, UM, MONEY-WISE? BUT THE, SOME OF THE GROWTH WAS ALREADY PROJECTED, RIGHT? YES.

AND INTO THE 59 CENT TAX RATE FOR THE ROBE BOND.

I MEAN, THE FINANCIAL ANALYSIS THAT WAS PREPARED BEFORE THAT BOND ELECTION ASSUMED CONSERVATIVELY SOME LEVEL OF GROWTH.

SO IT'S NOT 10% WAS THAT IT WAS, I THINK IT WAS 10 10 AND THEN TWO THEREAFTER.

RIGHT? SO WE, WE GREW AT 20% THIS YEAR, WHICH IS CAUSING ALL OF THIS, BUT I THINK IT WILL BE AT MUCH CLOSER TO 10 NEXT YEAR.

'CAUSE HOME SALES HAVE REALLY SLOWED.

SO ALL THESE NUMBERS REPRESENT THE, YOU KNOW, EXPLOSIVE GROWTH OF LAST YEAR AS COMPARED TO THE NUMBERS WE'RE CURRENTLY SEEING, WHICH WE WON'T DISCUSS UNTIL NEXT YEAR.

BUT IT'S, IT'S NOT GONNA BE, IT'S NOT GONNA BE AS HIGH I DO, BUT THE SALES TAX MIGHT BE, SALES TAX IS GONNA CONTINUE TO GROW.

MAKE, WE'RE GONNA NEED TO, WE'RE GONNA NEED TO FOLLOW IT THROUGH WITH THE BUDGETING PROCESS AND ALL THE WAY TO, TO THE END.

BUT IT'S, WHEN YOU'RE TALKING ABOUT CASH FLOWS VERSUS BONDING POWER THERE, IT'S JUST, IT'S JUST DIFFERENT FINANCIALS.

BUT, YOU KNOW, YES, I DO THINK THAT THERE'S A POSSIBILITY THAT THE, THE ACTUAL FINAL TAX DEBT IS CLOSE TO WHAT WE CURRENTLY HAVE.

NOT NECESSARILY 59 OR 55.

IT COULD BE 52 OR 50 POINT 0.82.

IT COULD BE THE CASE THAT WE NEVER HAVE TO CHANGE OUR TAX RATE PERIOD BECAUSE OF INCREASES ALONG THE WAY.

BUT AT THE END OF THE DAY, WHAT WE DO KNOW IS THAT WE HAVE TO ISSUE A SIGNIFICANT AMOUNT OF DEBT IN THE NEXT THREE TO FOUR YEARS.

AND IF WE DECIDE THREE TO FOUR YEARS FROM NOW, UH, NOT TO ISSUE AS MUCH, THEN THERE'S A BIG TAX RELIEF THERE.

BUT WE'RE, WE'RE SETTING UP FUTURE COUNCILS, UH, TO HAVE A, A PLETHORA OF GOOD OPTIONS.

AND THE DECISIONS WE MAKE TODAY ALWAYS, ALWAYS, ALWAYS IMPACT FUTURE COUNCILS.

ALWAYS.

AND WE HAD A PERIOD OF ABOUT FIVE TO SIX YEARS WHERE THE CITY COUNCIL, WHILE THE CITY WAS EXPLODING WITH GROWTH, SLASHED THEIR BUDGET, SLASHED THE TAX RATE, ALL THE WAY TO THE, TO THE EFFECTIVE RATE OF THE NO NET NEW REVENUE RATE, UH, PUT OFF C I P PROGRAMS AND SET US BACK.

I, IT'S BEEN STATED MANY, MANY TIMES THAT WE'RE 10 YEARS BEHIND ON INFRASTRUCTURE.

I'VE HEARD IT MANY, MANY TIMES.

THE REASON WE WERE 10 YEARS BEHIND ON INFRASTRUCTURE IS BECAUSE 15 YEARS AGO, THE CITY COUNCIL OF THAT DAY PUT NO MONEY INTO INFRASTRUCTURE.

THEY PUT IT ALL INTO TAX REDUCTION, INCLUDING A HALF CENT THAT THEY TOOK OUT TO THE VOTERS, AND THE VOTERS APPROVED TO TAKE A HALF CENT OF SALES TAX, WHICH WE WOULD BE COLLECTING, BUT WE DON'T, UH, BECAUSE WE GAVE THAT AWAY TO IN THE FORM OF PROPERTY TAX RELIEF, WHICH IS A, A FINE STRATEGY, BUT EVERYTHING HAS AN OPPORTUNITY COST.

THAT'S ALL I'M SAYING.

AND MY GOAL WOULD BE TO SEE US IN THIS PERIOD OF EXPLOSIVE GROWTH, DO WHAT WE NEED TO DO TO SET UP FUTURE COUNCILS, TO HAVE, UH, SUCCESSFUL, TO HAVE OPTIONS.

NOW, ALL OF THAT SAID, WE HAVE TO BE VERY CLEAR, UH, BECAUSE OF STATE LEGISLATURE CHANGES FROM TWO YEARS AGO AND BEFORE ANY VOTE FOR A TAX RATE ABOVE THE NO NEW REVENUE.

SO IT'S GONNA TAKE FIVE OF US TO PASS THE TAX RATE REGARDLESS OF WHAT WE DECIDE, WHETHER IT'S 47 CENTS OR 50 CENTS, IT REQUIRES A, REQUIRES FIVE OF US.

SO JUST, YOU HAVE TO BE, UH, COGNIZANT OF THAT.

SO WHATEVER DECISION WE

[01:25:01]

AND SO IF WE DON'T WANNA DO THAT, WE DON'T WANNA SIGNAL NOW THAT WE WILL AND THEN A A MONTH LATER CHANGE HORSES BECAUSE PUBLIC NOTICES HAVE TO GO OUT.

WE'VE JUST GOTTA BE CONSISTENT ON THIS, WHICHEVER WAY WE GO.

YEP.

YEAH, WE'RE A LITTLE OFF SCRIPT, UH, ON OUR, OUR PRESENTATION.

BUT I THINK TO, TO THAT, TO THAT POINT, UM, YOU KNOW, THAT'S THE MAYOR'S EXACTLY RIGHT, THAT THE LAW REQUIRES ANYTHING OVER THE NO NEW REVENUE RATE TO HAVE 60% OF THE GOVERNING BODY APPROVE THAT.

SO THAT'S FIVE VOTES THAT WOULD BE REQUIRED.

SO THAT'S EITHER AT THE MANAGER'S RECOMMENDED BUDGET OF THE 46 93 OR THE 58 2, YOU HAVE TO HAVE THAT, BUT YOU ALSO HAVE TO PASS THIS RESOLUTION CREATING THE DEFE PROGRAM OF THE 2.3 MILLION.

THAT ONLY TAKES A SIMPLE MAJORITY OF THE COUNCIL TO PASS IT.

SO FOUR VOTES.

BUT AGAIN, YOU HAVE TO HAVE FIVE VOTES TO SET, SET THE TAX RATE, AND NOT ONLY FOR TONIGHT, BUT THROUGH THE REST OF THIS PROCESS.

SO IF YOU HAD FIVE VOTES TO SET THE DEFIANCE PROGRAM AND INDICATE THE TAX RATE THAT YOU WANTED TO HAVE THIS EVENING, BUT THEN ONLY HAD FOUR VOTES TO ACTUALLY LEVY THE TAX RATE AND SET THE BUDGET ON SEPTEMBER 19TH, THAT WOULD FAIL.

AND WE WOULD GO BACK TO THE NO NEW REVENUE RATE.

BUT THE, IT WOULD BE A, A WORSE SITUATION BECAUSE THEN YOU WOULD'VE ALREADY CREATED THE DEFIANCE AND INCREASE THE TAX RATE ON THE DEBT.

SO YOU WOULD HAVE TO MAKE A CHANGE TO THE M AND O RATE, AND THE GENERAL FUND WOULD HAVE AN IMPACT RELATED TO THAT.

SO IT'S A LITTLE BIT OF SOME QUIRKINESS IN THE TAX CODE AND HOW THAT WORKS.

BUT THE BOTTOM LINE IS, AS THE MAYOR SAID, WHATEVER THE DECISION IS OF THE COUNCIL THIS EVENING, IT'S IMPORTANT TO HAVE THAT ALL THE WAY THROUGH.

OTHERWISE IT DOES HAVE FINANCIAL IMPACTS TO THE CITY.

SO PAIGE OR STEPHANIE, DID I MISSTATE ANY OF THAT? IF I DID, PLEASE CORRECT ME ON THAT.

I JUST WANNA MAKE SURE I LAID OUT THAT POLICY CORRECTLY TO THE COUNCIL.

SO DO YOU NEED, DO YOU NEED, WHAT WOULD A MOTION LOOK LIKE FOR IN FAVOR OF OR AGAINST A THE FEES? SO I HAVE A, I HAVE, I HAVE A THOUGHT AS TO HOW WE SHOULD DO THAT BECAUSE OF, BECAUSE IT COULD PASS FOUR THREE, WHICH WOULD SET A, SET IT UP TO FAIL DOWN THE ROAD.

MY THOUGHT WOULD BE TO, UH, ACTUALLY HAVE A ROLL CALL VOTE TO OPEN UP THE ITEM, WHICH IS LIKE A STRAW VOTE.

SO IF YOU'RE IN FAVOR, YOU TAKE A VOTE YES TO OPEN UP THE ITEM.

WE LET THAT VOTE GO.

AND IF THAT IS A FOUR THREE VOTE, THEN THEN WE NEED TO JUST KILL IT ONE WAY OR THE OTHER AND NOT MOVE ON.

SO IT NEEDS TO BE, THE VOTE NEEDS TO, IT'S A STRAW, IT'S A STRAW VOTE, ESSENTIALLY TO OPEN UP THE ITEM AND THEN IF FIVE VOTES OPEN IT, THEN WE CAN JUST VOTE ON IT THE SAME WAY AND ACTUALLY APPROVE THE ORDINANCE.

DO YOU WANNA MAKE THAT MOTION? WELL, WE ONLY HAVE SIX MEMBERS HERE, SO LET'S LET THAT GUY, WHEN YOU SAY OPEN, IT WILL BE TO, TO CONSIDER THE ITEM.

[2. Consideration and Approval of a Resolution by the City Council of the City of Kyle, Texas Providing for the Defeasance and Calling for Redemption Certain Currently Outstanding Obligations; Directing that the City Secretary, or designee, Effectuate the Redemption of these Obligations; and other matters in connection therewith. ~ Stephanie Leibe, Norton Rose Fulbright, City's Bond Counsel]

I'D LIKE TO MAKE A MOTION TO OPEN UP AGENDA ITEM NUMBER TWO.

IS THERE A SECOND? SECOND? YEAH.

I WAS WAITING FOR A ROLL CALL ALL MO MO MOTION BY THE MAYOR, SECONDED BY COUNCIL MEMBER BRADSHAW.

THIS WILL JUST BE TO TAKE UP THE ITEM.

KALE, NAYYY, BRADSHAW.

TOBIAS.

THAT THERE WILL HAVE A MUCH LARGER BOND ISSUE BE ASSOCIATED WITH THAT.

PARSLEY, NAYYY, ZUNIGA, UH, THE A, JUST TO DISCUSS IT, RIGHT? NO, IT'S, IT'S TO OPEN UP THE ITEM, BUT IT'S A, WE DON'T, WHAT WE DON'T WANT TO HAVE, HAVE HAPPEN IS, SO MOTION CARRIES FIVE TO TWO, BUT WHAT WE DON'T WANNA DO IS CALL THE VOTE AND THE VOTE CARRIES FOUR TO THREE.

BECAUSE IF THAT HAPPENS AND WE GO AND TAKE THE VOTE DOWN THE ROAD, IT REQUIRES A FIVE TO TWO VOTE.

I THINK BOTH PAIGE AND I ARE TRYING TO JUMP IN.

SO PAIGE, YOU WANT TO, I JUST WANT ASSURANCES OF NEXT YEAR IF WE DO THIS, THIS IS THE ONE YEAR.

WHAT DOES IT LOOK LIKE NEXT YEAR? I GUESS ON THE TAX RATE, IF IT COMES HIGH OR LOW? I MEAN, WE DON'T KNOW THAT.

WE DON'T KNOW.

WELL, I THINK IF WE, WE, I DON'T WANT TO TAX HIGH AND THEN TAX HIGH AGAIN NEXT YEAR.

NOW WE'RE JUST DOUBLING THE TAXES.

I I THINK FROM OUR POSITION ON THIS IS THAT THE RATES ARE GOING TO GO HIGHER WITH THE ASSUMED BOND SALES THAT WE HAVE.

THERE'S A CHANCE THAT WE WON'T ISSUE MORE NEXT YEAR.

AND SO YOU WOULD HAVE ANOTHER DEFIANCE THAT YOU WOULD NEED TO DO NEXT YEAR TO MAINTAIN THE RATE AGAIN.

BUT I DO BELIEVE IN THAT YEAR THREE

[01:30:01]

AND SO THAT'S, I WANNA BE CLEAR ABOUT NEXT YEAR IS MOST LIKELY THERE WOULD BE ANOTHER DEFIANCE IS WHAT WE LOOK AT.

I CAN'T TELL YOU WHAT THE AMOUNT WOULD BE.

IT MIGHT BE SOMETHING SIMILAR TO THIS OR HIGHER.

IT MIGHT BE 5 MILLION THAT WE'D BE ASKING YOU TO DO.

BUT AT THE STRATEGY ABOUT MAINTAINING THE RATE AND TRYING TO MINIMIZE RATE INCREASES IS THE QUESTION FOR THE, FOR THE COUNCIL IS THAT, HOPEFULLY THAT MAKES SENSE.

YEAH, YEAH.

I'M CLEAR.

I JUST WANNA MAKE SURE EVERYBODY UNDERSTANDS THE, THE, THE IMPORTANCE ABOUT, OR THE INFORMATION ABOUT THAT IT TAKES FIVE TO ADOPT THE TAX RATE ORDINANCE IN SEPTEMBER TAKES FIVE VOTES.

AND SO AS THE MAYOR SAID, IF, IF, IF YOU DON'T, IF YOU DON'T HAVE FIVE ON THE DFE, YOU'VE STILL INCREASED YOUR DEBT OBLIGATION AND YOU'LL STILL HAVE, YOU'LL, SO YOU'LL HAVE EFFECTIVELY ADOPTED THAT HIGHER DEBT SERVICE RATE, AND THAT'LL BE A COMPONENT OF YOUR TAX RATE THAT YOU'RE ADOPTING IN, IN SEPTEMBER.

AND YOU WON'T BE ABLE TO, IF YOU'RE GONNA, IF YOU WANNA LOWER A TAX RATE FROM THERE, YOU'RE JUST LOWERING THE MAINTENANCE AND OPERATIONS.

YOU'RE, YOU'RE LOWERING WHAT, WHAT IMPACTS THE GENERAL FUND AT THAT POINT.

MAKE DECISION.

SO THAT, THAT WAS THE REASON FOR THE STRAW POLL VOTE TO SEE YOU DON'T, BEFORE YOU COMMIT THAT ACTION TO GET, GET AN IDEA OF WHERE ARE PEOPLE ON THIS.

AND SO IF, IF THERE IS ANY, IF THERE'S A DESIRE TO RECONSIDER THAT VOTE THAT YOU JUST TOOK, YOU CAN USE THAT PROCEDURE TO RECONSIDER THAT VOTE TO, TO OPEN UP THE DEFIANCE AGENDA ITEM.

UH, I I JUST WANNA SAY THAT PERHAPS A LITTLE BIT MORE, YOU KNOW, STRAIGHTFORWARD.

IT WOULD DO FINANCIAL, UH, IT WOULD HAVE A FINANCIAL NEGATIVE FINANCIAL IMPACT TO THE CITY'S GENERAL FUND.

IF YOU WERE TO PASS THIS ORDINANCE, DO THE DEEDS AND PROGRAM, BUT NOT, BUT NOT HAVE THE SAME VOTE FOR THE TAX RATE.

IF YOU DON'T HAVE FIVE VOTES FOR THIS ALL THE WAY THROUGH THE PROCESS AND YOU GET DOWN TO THE END, IT WILL CAUSE FINANCIAL HARM TO THE CITY BECAUSE OF THAT.

SO THAT'S WHAT WE'RE SAYING IS THE GENERAL FUND WOULD BE IMPACTED THE PROGRAMS, THE TYPES OF SERVICES THAT YOU'RE PROVIDING, THEY'RE IMPACTED BY THAT IF YOU DON'T HAVE THAT VOTE ALL THE WAY THROUGH.

SO WE JUST WANNA MAKE SURE IT'S ON THE RECORD UPFRONT FOR EVERYBODY, THAT IF YOU DO THE DE FEASANCE, THERE'S AN IMPACT THAT NEEDS TO BE FOLLOWED THROUGH TO THE TAX RATE.

AND CAN YOU REMIND ME, DOES THAT MAKE SENSE? WHEN DO WE NEED TO VOTE FOR THE CREATION OF THE D DEFENSE? TONIGHT.

TONIGHT IS WHAT WE'RE ASKING.

THAT'S CORRECT.

AND, AND SO BASICALLY THERE MIGHT BE A CHANCE TO HAVE A SPECIAL MEETING, BUT TO MEET ALL OF THE POSTINGS TO PUBLIC IF IT PASSES.

WE HAVE, WE HAVE TO STICK WITH THE VOTE YES.

ALL THE WAY TO THE END.

SO IT'S NOT SOMEBODY VOTING YES.

AND THEN VOTING NO OTHER.

RIGHT? I JUST WANT YOU TO CHOOSE CAREFULLY AND, AND, AND VOTE HOW, HOW YOU NEED TO VOTE ON THE ISSUE.

BUT I, I WANNA MAKE SURE IT'S, I THINK IT'S, IT WOULD BE A MISTAKE TO VOTE YES AND THEN TO PLAN TO VOTE NO.

OR TO CHANGE YOUR MIND AND VOTE NO.

THEY NEED TO BE KIND OF THINKING ABOUT ALL OF THAT TOGETHER WOULD BE MY, MY RECOMMENDATION TO YOU.

BRIAN.

MAY I ADD ONE THING THAT WILL YES, SIR.

PUT DOLLAR DOLLARS TO IT? MM-HMM.

, IF YOU DEFEASE AND DON'T HAVE A FIVE TWO VOTE FOR THE TAX RATE, IT WILL COST YOUR GENERAL FUND $2,345,000.

THAT'S RIGHT.

YOU'LL HAVE THAT.

THAT'S THE DOLLAR AMOUNT THAT WOULD HAVE TO, BECAUSE YOU'VE CALLED THE BONDS.

2,000,345 IS WHAT'S BEING CALLED.

WE DON'T HAVE THE MONEY FROM THE I N SS TAX.

SO IT HAS TO COME FROM THE GENERAL FUND.

AN IMPORTANT DECISION.

RAISE THAT FOR YOU.

WHAT NOW? I DON'T THINK WE NEED THE REST OF THE ITEMS, DO WE? WE WE DO.

AGENDA ITEM NUMBER TWO IS UP.

I'M GONNA MAKE A MOTION TO APPROVE.

SECOND.

ALRIGHT.

MOTION BY THE MAYOR.

SECONDED BY COUNCIL MEMBER BRADSHAW.

PARSLEY, NAYYY, FLORES, KALE, NAYYY, MITCHELL.

[3. Consider approval of a Resolution to Record City Council's vote to place a proposal to increase property tax rate on the agenda of a future City Council meeting as an action item to adopt as the property tax rate (ad valorem tax rate) for tax year 2023 (Fiscal Year 2023-2024) for the City of Kyle; making findings of fact; and providing for related matters. (ROLL CALL VOTE IS REQUESTED) ~ Paige Saenz, The Knight Law Firm, City Attorney ]

UH, YES SIR.

WE DO NEED TO GO TO, UH, I BELIEVE, UH, THE REQUEST FOR ITEM THREE WOULD ALSO NOT BE NEEDED.

CORRECT PAGE.

I BELIEVE THAT'S CORRECT.

THAT'S

[4. Consider approval of a revised calendar for public hearings and reading of the Ordinances for the adoption of the City's budget and property tax rates for Fiscal Year 2023-2024. ~ Paige Saenz, The Knight Law Firm, LLC, City Attorney]

AND THEN ITEM UM, FOUR WOULD BE CONSIDERED THE, DID I, DID I MISSTATE THAT I ITEM NUMBER FOUR, THE REVISION OF THE BUDGET CALENDAR STILL NEEDS TO BE VOTED BECAUSE THE PUBLIC NOTICE DATES HAVE CHANGED.

UH, NEXT ACCEPT AGENDA ITEM FIVE, CONSIDER APPROVAL OF AMENDMENTS TOTALING $847,736 TO THE PROPOSED BUDGET FOR FISCAL YEAR 2023.

SAY THAT AGAIN.

I'M SORRY.

I WAS STILL JUST PROCESSING.

I, I I

[01:35:01]

WASN'T LISTENING.

I'M SORRY.

I WAS STARING RIGHT THROUGH YOU.

ITEM FOUR NEEDS TO BE, UH, READ AND CONSIDERED MAYOR BECAUSE OF THE CALENDAR.

ALRIGHT.

ACCEPT AGENDA ITEM NUMBER FOUR.

CONSIDER APPROVAL OF A REVISED CALENDAR FOR PUBLIC HEARINGS AND READING OF THE ORDINANCES, UH, FOR THE ADOPTION OF THE CITY, MA UH, CITY'S BUDGET AND PROPERTY TAX RATES FOR FISCAL YEAR 2023.

2024.

SO THE, UH, SO THE REQUEST WOULD BE THAT WE HAVE A BUDGET WORK SESSION ON SEPTEMBER 5TH.

WOULD THAT ALSO BE THE PUBLIC HEARING? AND THEN ON THE SEPTEMBER 19TH MEETING MEETING, WE'D ASK YOU TO FORMALLY CONSIDER APPROVING THE BUDGET.

DID YOU HAVE SOMETHING ELSE, PAIGE? WE WERE ALL JUST TRYING TO GET BACK ON SCRIPT.

SO DO, DO YOU NEED MORE, MORE FROM US OR JUST, ALRIGHT, MOTION TO APPROVE.

CAN YOU REPEAT THE MOTION? IT'S REVISED HONOR.

THE, IT'S THE SETTING THE CALENDAR.

SECOND MOTION BY THE MAYOR, SECOND BY COUNCILMAN PARSLEY.

THERE.

DISCUSSION ON THE MOTION? ALL IN FAVOR, SAY AYE.

[5.

Consider approval of amendments totaling $847,736.00 to the City's proposed budget for Fiscal Year 2023-2024, increasing appropriations for total proposed expenditures by $847,736.00 and reducing the appropriate proposed ending fund balances by $847,736.00 to fund the following addition of budget items:

$150,000.00 in additional funding for the Uber$3.14 program. (General Fund)

$89,257.00 for one (1) new Animal Control Officer position and support costs. (General Fund)

$117,609.00 for one (1) new Code Enforcement Supervisor position and support costs. (General Fund)

$234,775.00 for two (2) new Street Maintenance Technician positions and support costs for Curb Painting Program. (General Fund)

$256,095.00 for one (1) new Director of Utilities position and support costs. (Water & Wastewater Utility Fund)

~ Bryan Langley, City Manager
]

2024.

INCREASING APPROPRIATIONS FOR TOTAL PROPOSED EXPENDITURES BY $847,736, INCREASING THE APPROPRIATE PROPOSED ENDING FUND BALANCES BY 847,000 7 36, UH, TO FUND FOLLOWING ADDITIONAL BUDGET ITEMS, 50,000.

ADDITIONAL FUNDING FOR THREE PROGRAM 89,000 2 57 FOR ONE NEW ANIMAL CONTROL OFFICER POSITION 609 FOR ONE SUPERVISOR POSITION TWO 34,775.

TWO NEW STREET MAINTENANCE TECHNICIAN POSITIONS, UH, AND SUPPORT COSTS FOR CURB MAINTENANCE PROGRAM AT TWO 56,095 FOR ONE NEW DIRECTOR OF UTILITIES POSITION AND SUPPORT COSTS.

UH, MAYOR AND COUNCIL, AS WE'VE CONTINUED TO TO LOOK AT THE ORGANIZATION AND HAD SOME ADDITIONAL DISCUSSIONS WITH YOU OVER THE LAST FEW WEEKS REGARDING THE BUDGET, WE WANTED TO BRING THESE ITEMS BACK TO YOU FOR CONSIDERATION.

UH, THE FIRST OF THOSE IS TO TAKE A LOOK AT THE UBER PROGRAM.

UH, JERRY HAS SOME SLIDES ON THAT.

I KNOW THERE WERE SOME QUESTIONS ABOUT THE LEVEL OF FUNDING FOR THAT.

SO WE WANTED TO PRESENT THAT TO YOU AND ASK THAT THE BUDGET BE AMENDED TO PROVIDE MORE FLEXIBILITY GOING FORWARD FOR THIS COMING YEAR.

JERRY MAYOR COUNCIL.

JERRY HENDRICKS, ASSISTANT CITY MANAGER FOR THE RECORD.

UH, THIS ITEM IS TO ASK COUNCIL TO AMEND THE CITY MANAGER'S PROPOSED BUDGET BY $150,000 IN ADDITIONAL FUNDING FOR THE UBER PROGRAM.

AFTER THE LAST MEETING, WE WERE, UH, WE WENT BACK AND WE LOOKED AT THE BUDGET, PLANNED OUT WHAT OUR ACTUAL FUNDING ALLOCATION WILL BE NEXT YEAR TO FULLY FUND THE PROGRAM.

BEFORE WE GET INTO THAT CALCULATION, JUST A QUICK SUMMARY OF THE HISTORY OF THE PROGRAM.

THE PROGRAM STARTED IN 2020.

THE INITIAL LAUNCH WAS JUST THE UBER 3 1 4 PROGRAM, WHICH PROVIDED A RIDES PER MONTH WHERE THE RIDERS PAID THE FIRST $3 AND 14 CENTS.

THE CITY PAID THE NEXT 10.

ANYTHING OVER THAT WAS CHARGED BACK TO THE RIDER.

THE PROGRAM WAS WELL RECEIVED AND THE NEXT BUDGET YEAR, THE COUNCIL ADDED ADDITIONAL SERVICES.

THEY ADDED TWO ADDITIONAL RIDES TO THE BASE UBER 3 1 4 PROGRAM AND INCREASED THE SERVICE AREA FOR THAT PROGRAM.

ALSO ADDED TWO RIDES, UH, TO AND OR FROM THE AIRPORT WHERE THE RIDER PAYS THE FIRST 32% OF THE RIDE.

THE CITY PAYS THE REST AND ALSO ADDED, UH, RIDES TO THE VA CLINIC FOR OUR VETERANS THAT NEEDED TO GET TO THAT SERVICE IN SOUTH AUSTIN FOR THEIR HEALTH.

WE ALSO ADDED AN ADDITIONAL PROGRAM FOR A D A ASSISTANCE WHERE PEOPLE REQUIRING WHEELCHAIR ACCESSIBLE VEHICLES COULD ACTUALLY CALL AND MAKE AN APPOINTMENT TO TAKE THOSE RIDES TO ANYWHERE IN THE SERVICE AREA.

AND ALL THOSE PROGRAMS HAVE BEEN VERY WELL RECEIVED.

NEXT SLIDE PLEASE.

SO IN 2022, IT WAS THE FIRST TIME WE, UH, ARE PROJECTED TO EXCEED THE $230,000 ORIGINALLY BUDGET ANNUALLY FOR THE PROGRAM.

UH, YOU CAN SEE THE CHART THERE THAT SHOWS YEAR OVER YEAR THE INCREASES IN RIDES AND THE INCREASES IN COST.

SO WE HAVE PUT AN EXTRA $70,000 IN NEXT YEAR'S BUDGET, BUT REALIZE NOW THAT WITH THE, AS THE PROGRAM CONTINUES TO GROW AND GAINING POPULARITY AND THE ADDITIONAL COST FOR THE A D A COMPONENT OF THE PROGRAM, THAT WE'D LIKE TO REQUEST AN ADDITIONAL $150,000 BRINGING THE TOTAL BUDGET FOR NEXT YEAR TO $450,000 FOR THE UBER PROGRAM.

I'M AVAILABLE FOR ANY QUESTIONS.

I HAVE LOTS OF QUESTIONS.

SO, UM, BEFORE I CAN VOTE ON THIS, I JUST NEED TO MAKE SURE THAT WE HAVE THE CORRECT NUMBERS.

AND I, UM, WANTED TO CONFIRM, BRIAN, DID YOU REVIEW THIS AS WELL? I DID, YES.

SO MY FIRST QUESTION IS GONNA BE, UM, THE FIRST YEAR, FISCAL YEAR 2021, UM, THERE WAS NOTHING EXCEPT FOR UBER RIDES.

CORRECT? SO THERE WAS NO AIRPORT VA OR A D A?

[01:40:01]

SO I GUESS I'M KIND OF CONFUSED AS TO WHY FISCAL YEAR 2021 UBER STATES THERE WAS 2,900 RIDES.

BUT WHEN YOU GO ALL THE WAY TO THE BOTTOM WHERE IT SAYS GRAND TOTAL FOR ALL RIDES, IT SAYS THERE WAS 7,377 AND THEY HAVE A COST DIFFERENCE OF APPROXIMATELY $30,000.

I HAVE TO GO BACK AND REVIEW MY, MY NOTES, BUT I TOOK THESE OFF OF OUR MONTHLY REPORTS TO MAKE THESE CALCULATIONS.

AND THAT, THAT THOSE MONTHLY REPORTS COME FROM UBER OBJECT, UH, COMPILED BY ME BASED ON INFORMATION I GET THROUGH THEIR DASHBOARDS.

UM, SO THAT'S A CONCERN 'CAUSE IT SEEMS TO BE OFF BY A COUPLE THOUSAND RIDES.

UM, AND IN JUSTIFYING TRYING TO FIGURE, FIGURE OUT IF WE NEED TO INCREASE THESE RIDES OR NOT, AND THE, AND THE FINANCIAL ASPECT OF IT, I NEED TO MAKE SURE IT MATCHES.

UM, THE NEXT ISSUE I SEE IS IF YOU TAKE FISCAL YEAR 2022 TO 2023, IF YOU TAKE ALL THOSE COSTS IN THE DIFFERENT CATEGORIES FROM UBER TO AIRPORT RIDES TO VA RIDES TO A D A RIDES, THE GRAND TOTAL IT SHOWS IS $119,639.

WHEN I TOOK MY CALCULATOR, IT WAS $161,009 AND 18 CENTS.

AND THE RIDES ARE ALSO OFF.

SO IF I ADDED UP ALL THE RIDES FOR FISCAL YEAR 2021 TO 2022, IT GAVE ME 10,578 RIDES, WHICH IS OFF BY 309 RIDES, WHICH IS EXACTLY WHAT'S UNDER A D A RIDES VIA MT CONNECT.

I, I'LL BE HAPPY TO GO BACK AND RECHECK THE FORMULAS THAT I HAVE IN MY SPREADSHEET, BUT I DID DOUBLE CHECK THESE.

AND THEN MY LAST, I BELIEVE MY LAST CONCERN HAS TO DO WITH AIRPORT RIDES VERSUS, UM, A D A RIDES.

SO IN FISCAL YEAR 20 21, 20 22, THERE WAS 1,330 RIDES FROM THE AIRPORT WITH A COST OF $41,369 AND 73 CENTS.

FISCAL YEAR 2022 TO 2023, IT'S 2,114 RIDES WITH A COST OF $63,909 AND 5 CENTS, WHICH IS THE EXACT SAME AMOUNTS FOR THE A D A RIDES VIA MT CONNECT.

SO MY QUESTION IS, HOW ARE THESE NUMBERS THE SAME UNLESS ALL THE RIDERS THAT WERE GOING TO THE AIRPORT, WERE A D A ACCESSIBLE AND ALL THE A D A ACCESSIBLE RIDES, WE'RE GOING TO THE AIRPORT.

I, I DON'T HAVE NUMBERS ON THE AD RIDES IF THE, HOW MANY OF THOSE WENT TO THE AIRPORT? I JUST GET, UH, MILEAGE AND THE TOTAL DOLLAR AMOUNT.

I'D BE HAPPY TO GO BACK AND DOUBLE CHECK THAT AND BRING IT BACK.

UM, YEAH, I MEAN, JUST LOOKING AT THE NUMBERS, IT'S O IT'S VERY UNLIKELY THEY'RE THE EXACT SAME.

THERE MAY BE A MISPRINT HERE THAT WE CAN GO BACK AND TAKE A LOOK AT TO SEE THAT THEY WOULD BE THE EXACT SAME IN BOTH CATEGORIES, BUT WE CAN, WE CAN TAKE A LOOK AT IT.

SO THE DIFFERENCE IN THE YEARS FOR FISCAL 20 YEAR 2122 IS $41,370 AND 18 CENTS, WHICH IS APPROXIMATELY THE SAME AS EITHER FISCAL YEAR 21, 22 FOR AIRPORT RIDES, OR FISCAL YEAR 21, 22 FOR A D A RIDES.

SO I DON'T UNDERSTAND HOW THE AIRPORT RIDES FOR 2022 AND 2023 ARE THE SAME AND SO ARE, SO ARE THE AMOUNTS.

SO IF IT'S AN A D A RIDE, IT'S GONNA COST MORE VERSUS GOING TO THE AIRPORT.

I'LL HAVE TO GO BACK AND, AND REVIEW THESE NUMBERS.

BUT, AND MAYBE AS WE GO INTO SOME OF THE OTHER ITEMS HERE, MAYBE JURY CAN TAKE A LOOK AT THAT SPREADSHEET AND SEE IF THERE'S AN ERROR THAT WE COULD COME BACK AND UPDATE YOU ON.

PERHAPS.

SO MY FOLLOW UP QUESTION, IS THERE ANY OP IS THERE OPPORTUNITY, SORRY, UM, FOR, FOR US TO BE GETTING DOUBLE CHARGED, JERRY? NO.

FROM A, A FAKE RIDERS OR I GUESS SOMEONE GOING TO THE AIRPORT AND CHARGING 2 88 BEST AND AIRPORT, RIGHT? NO, THOSE ARE TOTALLY TWO DIFFERENT PLATFORMS. MM-HMM.

SO NORMALLY WHAT WHAT RESIDENTS WILL DO, THEY'LL GO TO OUR WEBSITE AND GET A VOUCHER, AND THEN WE GET THE BILL FROM THE UBER RIDER.

IS THAT HOW IT IS? MM-HMM.

ON THE PLATFORM, THE MM-HMM.

, THE UBER PLATFORM CALCULATES THE RIDES PER MONTH.

AND THE PAYMENT MADE BY THE RIDER AND THEN BILLS US AT THE END OF THE MONTH FOR THE BALANCE.

SO I, I WAS LOOKING, 'CAUSE I KNOW YOU HAVE MENTIONED THAT BEFORE THAT YOU WANTED TO INCREASE THE MM-HMM.

THE RIGHTS.

AND SO I, I NEEDED TO, TO HAVE A BETTER UNDERSTANDING IF RESIDENTS WERE USING IT.

AND I WAS VERY SURPRISED AND HAPPY TO KNOW THAT THEY ARE BEING USED TO THE RIGHT

[01:45:01]

PLACES.

LIKE THEY'RE GOING TO EITHER THE HOSPITAL OR H E B OR PLACES WHERE WE HAVE RETAIL.

SO, I MEAN, IT'S OBVIOUSLY PEOPLE THAT ARE NEEDING THESE RIGHTS.

UM, SO I I AM COMPLETELY FINE APPROVING THE INCREASE, ESPECIALLY BECAUSE THAT INCREASE IS ONLY GOING TO HAPPEN IF THE PEOPLE, THE RIDER ARE ACTUALLY TAKING, IF THE RIDER ACTUALLY USES THE TICKET.

I HAVE A FRIEND OF MINE THAT IT'S PARTLY BLIND AND SHE SWEARS BY UBER.

SO, UM, NOW I GO TO YOUR POINT THAT YOU DON'T WANNA CUT THOSE RIGHTS TO ONLY 10 RIGHTS A MONTH IF SOMEBODY REALLY NEEDS IT.

'CAUSE AT THE END OF THE DAY, IF SOMEBODY DOESN'T NEED IT, THEY'RE NOT GONNA GET THE VOUCHER.

SO WITH THAT, I WOULD LIKE TO MAKE A MOTION TO APPROVE THE INCREASE OF 150 FOR UBER THREE 14.

I'LL SECOND THAT, BUT I ALSO WANTED TO MAKE A COMMENT.

I KNOW A RESIDENT THAT IS ON A WHEELCHAIR AND WE DO NOT HAVE CARTS IN THE CITY, THE, THE VAN.

SO THIS A D A UBER PROGRAM IS VERY BENEFICIAL TO THESE RESIDENTS THAT DON'T HAVE THAT ABILITY TO JUST GET IN A CAR THEMSELVES.

AND, AND ARE, WE DON'T HAVE CARTS TRANSPORT.

THAT'S RIGHT.

BUT THAT WAS ACTUALLY THE GENESIS OF THIS PROGRAM WAS HELPING PEOPLE THAT ARE RIDE CHALLENGED OR RIDE DEPENDENT MM-HMM.

AND IT'S HAD A BONUS THAT EVERYBODY IS ABLE TO BENEFIT FROM THIS PROGRAM.

THANK YOU JERRY, FOR PROVIDING US THE MAP OF WHERE THEY DO GO, LIKE DANIELLE WAS ASKING FOR.

SURE.

WELL, I DO HAVE SOME CONCERNS.

UM, UBER IS A PUBLICLY TRADED COMMODITY, AND IN THE EVENT ANY OF THESE NUMBERS ARE INCORRECT AND THEY'RE USING THOSE NUMBERS THAT WILL HAVE TO BE SHARED WITH THE STOCKHOLDERS.

SO BEFORE WE MAKE A VOTE, I THINK WE SHOULD THINK LONG AND HARD, WHETHER OR NOT THESE ARE TRUE NUMBERS AND WHETHER OR NOT WE SHOULD, UH, CONSIDER IT WITHOUT, UH, WITH THE CONCERNS THAT HAVE BEEN ADDRESSED.

JUST SO I UNDERSTAND THE, I GET THE, THE NUMBERS.

UM, BUT UBER BEING A PUBLICLY TRADED COMPANY, YOU'RE SAYING WHAT? SO IN THE EVENT, UH, THERE IS LIKE SOME KIND OF FRAUDULENT WITHIN THE SYSTEM OF UBER, AND WE AS, AS, LIKE THEY SAY, FOR EXAMPLE, THEY SAY, HEY, THE CITY OF KYLE USES US FOR X, Y, Z, AND IN THE EVENT THAT THERE IS SOMETHING UNDERLINING ISSUES, THEN THEY HAVE TO RELEASE THAT TO THEIR SHAREHOLDERS.

SO BEFORE WE MOVE FORWARD ON DOING IT, I JUST WANNA MAKE SURE WE HAVE THE CORRECT INFORMATION AND THAT WE'RE IN A SAFE PLACE.

THAT'S MY, THAT'S MY CONCERN.

IT DOESN'T HAVE TO BE ANYBODY ELSE'S CONCERN.

IT DOESN'T HAVE TO STOP YOU FROM VOTING.

I JUST WANTED TO MAKE SURE THAT, UH, I ADDRESSED MY CONCERNS.

I DON'T HAVE ANY CONCERNS ABOUT PUBLICLY TRADED COMPANIES.

UH, THERE IS A MOTION THE TABLE CALL, CALL THE QUESTION.

I, I, I JUST WANNA SAY ONE THING REAL FAST.

UM, I, I, I, I'M IN FAVOR OF THIS INCREASE, BUT I, I DO THINK THAT MOVING FORWARD WE NEED TO DO, UH, WE NEED TO SPEND SOME TIME FIGURING OUT HOW TO MARKET THIS APPROPRIATELY SO THAT WE CAN MAXIMIZE THE VALUE TO THE RESIDENT.

UM, I THINK THAT'S REALLY IMPORTANT.

WE CAN INCREASE FUNDING FOR THINGS ALL DAY LONG, BUT IF THE PEOPLE DON'T KNOW THAT IT'S AVAILABLE FOR THEM TO USE, IT'S JUST AN EXERCISE IN FUTILITY.

ALL THOSE IN FAVOR SAY, AYE.

ALL OPPOSED, NAYYY.

I'LL, I'LL RESET THESE NUMBERS IN THE NEXT WEEK'S FRIDAY REPORT.

I'LL SET AN UPDATE.

CAN I ALSO HAVE A BACKUP THAT SHOWS THE NUMBERS FOR EACH? I WOULD APPRECIATE THAT.

WE'LL BE GLAD TO PRO I PROVIDE THAT TO YOU IN THE, UM, IN THE FRIDAY REPORT.

WE'LL SEND THAT OUT.

THE NEXT ITEM THAT WE HAVE ON THE, UH, THE LIST OF THE BUDGET AMENDMENTS, UH, WOULD BE FOR AN ANIMAL CONTROL OFFICER OUT OF THE GENERAL FUND.

I KNOW WE ALL HAD A DISCUSSION, UH, JUST, UH, LAST COUNCIL MEETING ABOUT SOME OF THE CHALLENGES THAT WE HAVE WITH A PARTICULAR CASE.

WE'VE BEEN LOOKING AT THAT, UH, AGREE THAT THERE'S CERTAINLY THINGS WE COULD HAVE DONE DIFFERENTLY WITH THAT.

UM, ONE OF THOSE THINGS THAT WE'VE BEEN LOOKING AT IS JUST THE, THE LEVEL OF CASES THAT ARE COMING IN TO OUR ANIMAL CONTROL OPERATION, THE NUMBER OF STAFF THAT WE HAVE, AND THEIR ABILITY TO KEEP UP WITH THAT DEMAND.

AND SOME OF THE THINGS THAT I'VE BEEN SEEING ACROSS THE BOARD IN THE CITY IS AS THE CITY'S GROWN, THE NUMBER OF REQUESTS THAT ARE COMING IN HAVE, HAVE GONE UP EXPONENTIALLY.

SO WE DO HAVE SOME DATA IN HERE WE WANT TO SHOW FOR THIS, BUT THIS WOULD BE ADDING A NEW ANIMAL CONTROL OFFICER POSITION.

UM, IT'S ABOUT $89,000.

VE IF YOU COULD HELP ME GO THROUGH THIS A LITTLE BIT.

SO A COUPLE SLIDES UP.

KEEP GOING.

SO THIS WOULD BE A FOURTH ANIMAL, UH, CONTROL OFFICER.

UM, AGAIN, TRYING TO BE MORE PROACTIVE ABOUT ENFORCEMENT IS ONE OF THE THINGS WE REALLY WANTED TO TRY TO DO WITH THIS.

IT WOULD ALLOW US TO MAINTAIN SOME MINIMUM STAFFING AND HAVE SEVEN DAY A WEEK COVERAGE.

AND THAT'S ONE OF THE THINGS THAT I KNOW WE'VE HEARD FROM THE RESIDENTS ON IS THAT'S

[01:50:01]

IMPORTANT.

SO THIS WOULD ALLOW US TO DO THAT, HAVE SOME EXTENDED COVERAGE FOR THE EVENING HOURS, AND ALLOW TRA TO DO STAFF TO DO EVEN MORE TRAINING.

WE'VE HAD SOME DISCUSSION WITH, WITH MS. KATZ.

IN FACT, I BELIEVE THE CHIEF HAD A DISCUSSION WITH HER JUST YESTERDAY, I BELIEVE YESTERDAY, AND ARE LOOKING AT DOING SOME TYPE OF TRAINING GOING FORWARD.

UH, SO THIS IS KIND OF TRYING TO HAVE THAT HOLISTIC, UH, APPROACH TO THIS OF HAVING SOME MORE STAFF, BETTER TRAINING OPPORTUNITIES THAT WE WOULD HAVE, UH, MOVING FORWARD TO HAVE BETTER OUTCOMES.

SO THAT'S THE, THE FIRST PIECE ON THE ANIMAL CONTROL.

UH, WE DO HAVE A NUMBER OF CALLS THAT WE'RE SHOWING HERE, HERE.

AND WE HAVE SOME GRAPHS THAT WILL SHOW THIS ON THE NEXT SLIDE.

UH, SO, UM, FROM 2014, CALLS HAVE INCREASED FROM 3,500 HUNDRED CALLS IN ONE YEAR TO 4,000 IN 2022.

UM, THEY'VE RESPONDED SINCE JUST JANUARY OF 2023 TO ABOUT 2100 CALLS ALREADY.

UM, THE STAFFING FOR THE DIVISION HAS BEEN ONE TO TWO OFFERS OFFICERS TO HANDLE THOSE CALL VOLUMES.

AND, UH, WE'VE ALSO HAD TO, WHEN WE TAKE ANIMALS OVER TO SAN MARCOS TO THE REGIONAL ANIMAL SHELTER, THAT DOES TAKE A LOT OF TIME ON THAT RETURN TRIP.

AND I KNOW BRIANNA AND THE CHIEF CAN TALK A LITTLE BIT ABOUT THAT IN MORE DETAIL.

IN ADDITION TO THE, UH, THE ACTUAL ANIMAL CALLS THAT WE GET FOR SERVICE, THERE'S ALSO LOTS OF INFORMATIONAL CALLS THAT ARE COMING IN.

YOU CAN SEE THOSE HAVE GROWN OVER THE PAST FEW YEARS AS WELL.

UM, BITE CASES, YOU CAN SEE, UH, KEEP GOING PEREZ, IF YOU CAN.

, I'M FLYING THROUGH THESE NOW.

UH, BITE CASES, UH, CONTINUE TO, TO BE A SIGNIFICANT, UM, UH, CASELOAD FOR ALL OF OUR STAFF AS WELL.

AND THEN WE DO HAVE A NUMBER OF TRAINING, UH, CLASSES AND, UH, ACTIVITIES THAT THE ANIMAL CONTROL OFFICERS ARE TRYING TO, TO, TO TAKE CARE OF.

THESE ARE ALL THE THINGS THAT THEY'RE DOING, UM, ON AN ANNUAL BASIS.

SO I'LL ASK, UH, BRIANNA, THE CHIEF TO COME UP AND AND ADDRESS THE TRAINING JUST BRIEFLY.

HEY, GOOD EVENING.

JEFF BARNETT, CHIEF OF POLICE FOR THE RECORD.

UH, ONE OF THE BEST THINGS WE DO AT KYLE PD FOR ALL OF OUR STAFFING POSITIONS IS WE, WE OFFER TRAINING AND WE TRY TO CREATE IN-HOUSE EXPERTS.

THAT'S OUR GOAL.

WHEN WE HAVE SOMEBODY IN A POSITION, UH, WE WANT THEM TO BECOME AN EXPERT THAT OTHER AGENCIES CAN RELY ON.

WE WANT 'EM TO BE THAT WELL KNOWN AND THAT RESOURCED, UH, YOU CAN SEE HERE FROM THE LIST OF TRAININGS THAT YOU HAVE BEFORE YOU DO NOT.

THESE ARE THE TRAININGS THAT WE ASK OUR ANIMAL CONTROL OFFICERS TO ATTEND, UH, IN ADDITION TO DOING THEIR DUTIES.

AND YOU CAN SEE WE HAVE A VERY ROBUST FIELD, OR I'M SORRY, A FIELD TRAINING PROGRAM.

THAT'S WHERE THE NEW HIRE COMES IN AND THEY WORK WITH A MORE EXPERIENCED ANIMAL CONTROL OFFICER.

UH, IN OUR CASE THAT'S BRIANNA.

SHE TRAINS ALL OF OUR NEW ACOS.

WE CONDUCT A NUMBER OF IN-HOUSE TRAININGS THROUGHOUT THE YEAR.

AND YOU CAN SEE WE HAVE A LIST OF CLASSES.

UH, I DON'T, I'M GONNA ASK BRIANNA IF THERE'S ANY THAT SHE WANTS TO HIGHLIGHT, BUT YOU CAN SEE THAT WE DO TAKE TRAINING, UH, VERY SERIOUS AT OUR PD FOR ALL POSITIONS.

AND I KNOW IT'S COME UP IN RECENT MEETINGS.

DO WE TRAIN OUR ACOS? IF SO, WHAT KIND OF TRAINING IS THAT? WE'VE COMPILED A LIST OF WHAT WE CURRENTLY USE, AND WE ARE ALWAYS LOOKING FOR GOOD TRAINING.

UH, CITY MANAGER MENTIONED TO YOU THAT I MET WITH, UH, ROBIN YESTERDAY AND WE HAD A, A VERY, VERY GOOD MEETING.

I DO BELIEVE THAT SHE AND SOME OF HER, UH, FIELD EXPERTS OFFER SOME VERY VALUABLE TRAINING IN THE AREA OF ANIMAL CONTROL SERVICES AND THE TREATMENT OF ANIMALS.

AND SHE MAY HAVE MENTIONED, UH, THAT EVEN BRANCHES OUT IN SOME OF OUR CRIMINAL LAW ENFORCEMENT.

SO I THINK WE'RE GONNA DEFINITELY TAKE ADVANTAGE OF THAT AS WELL.

BUT I DID WANNA REPORT BACK TO YOU THAT I DID MEET WITH HER AND I THINK WE HAD A VERY, VERY PRODUCTIVE MEETING.

AND YOU'LL SEE US COLLABORATING WITH HER AND OTHER PROFESSIONALS IN THE FIELD.

NOT JUST HER, BUT OTHER PROFESSIONALS IN THE FIELD AS WE CONTINUE WHAT YOU SEE ON THE SCREEN BEFORE YOU, WHICH IS A VERY ROBUST TRAINING PROGRAM.

YEAH, WE'RE GOOD.

UNLESS YOU HAVE QUESTIONS.

IMPORTANT ENOUGH, AND URGENT ENOUGH TO CALL OUT AN ANIMAL CONTROL EXPERT.

I JUST WANNA SAY THAT I KNOW BRIANNA HAS BEEN STRETCHED THIN.

UM, AND I ACKNOWLEDGE THAT DURING THAT MEETING.

UM, I THINK THAT IT WAS KIND OF UNFAIR THE WAY THAT THAT THINGS WENT THROUGH.

UM, AND I, I REALLY DISLIKED THE PURE PRESSURE WE GOT ABOUT TRAINING, NOT EVEN KNOWING IF TRAINING WAS THE ISSUE.

UM, I KNOW THAT YOU WERE ALMOST LIKE A, A ONE PERSON WORKING FOR THE WHOLE CITY.

SO IS IT REALLY TRAINING THE ISSUE OR ARE WE LETTING SOMEBODY LIKE REALLY PUSH US TO GET MORE TRAINING? ARE WE GONNA GET ANYTHING BENEFICIAL OTHER THAN WHAT YOU ALREADY KNOW? I MEAN, IT'S FREE.

SO I DO THINK WE WILL, UH, IF IT'S OKAY MR. LANG, I'LL ANSWER IT.

UH, I DO THINK WE'LL GET SOME BENEFICIAL TRAINING BECAUSE IT WILL NOT ONLY ENCOMPASS, UH, ANIMAL CONTROL SERVICE DUTIES, IT WILL NOT ONLY BE FOR ANIMAL CONTROL OFFICERS, BUT IT WILL BE AN AWARENESS LEVEL FOR OUR POLICE OFFICERS AS WELL.

SO WE TRY NOT TO CALL OUR ANIMAL CONTROL OFFICERS OUT AFTER HOURS AND, AND WHEN, YOU KNOW, ON THE WEEKENDS, BUT THIS WILL OBVIOUSLY FIX THAT.

UM, UNLESS WE JUST HAVE TO.

BUT WE DO WANT OUR POLICE OFFICERS THAT ARE THE FIRST RESPONDER TO SOME OF THESE CALLS AFTER HOURS TO KNOW THE BASIC LAWS, TO BE ABLE TO RECOGNIZE, RECOGNIZE SIGNS OF ANIMAL CRUELTY AND TO KNOW WHEN IT IS IMPORTANT,

[01:55:01]

SO I THINK THE AWARENESS LEVEL TRAINING THAT WE'RE LOOKING AT WITH, WITH NOT ONLY ROBIN, BUT OTHER PROFESSIONALS WOULD CERTAINLY BENEFIT THE DEPARTMENT AS A WHOLE AND GIVE US THE ABILITY TO PROVIDE BETTER SERVICES.

SO THE, THE ONE THING I WOULD LIKE TO GET, IF IT'S OKAY WITH BRIAN AND YOU CAN PROVIDE THAT IS THE TYPE OF TRAINING SHE'S GOING TO GIVE THE HOURS THAT THE TRAINING IS GOING TO TAKE JUST TO SEE IF IT'S REALLY BENEFICIAL.

THAT'S SOMETHING YOU DON'T HAVE IN, UH, WOULD LIKE, I, I WOULD LIKE TO MAKE A MOTION TO APPROVE, UM, THE BUDGET AMENDMENT FOR THE ADDITIONAL ANIMAL CONTROL OFFICER.

SECOND, OUR MOTION BY COUNCIL MEMBER, PARTIALLY SECONDED BY COUNCIL MEMBER FLORES KALE, THAT WE APPROVE THE NEW ANIMAL CONTROL OFFICER POSITION.

IS THERE DISCUSSION ON THAT MOTION? ALL THOSE IN FAVOR SAY AYE.

ALL OPPOSED.

MOTION CARRIES SEVEN TO ZERO AND THANK YOU FOR, FOR ADDING THAT ANOTHER OFFICER TO THAT WOULD DEFINITELY HELP INCREASE SERVICES.

THANK YOU, SIR.

APPRECIATE THAT.

AND I, I THINK, UM, CONTINUING ON WITH THAT DISCUSSION, ONE OF THE OTHER THINGS THAT WE'VE BEEN LOOKING AT IS CODE ENFORCEMENT.

SO, UH, SOME OF YOU MAY KNOW THAT BRIANNA, IN ADDITION TO BEING OUR ANIMAL CONTROL SUPERVISOR, SHE WAS IN CHARGE WITH MANAGING CODE ENFORCEMENT AS WELL.

WE'VE HAD A LOT OF DISCUSSIONS INTERNALLY ABOUT HOW TO DO BOTH OF THOSE THINGS WELL.

AND WE BELIEVE WE NEED TO SEPARATE THOSE TWO FUNCTIONS AND TO HAVE A NEW CODE ENFORCEMENT SUPERVISOR POSITION.

SO THAT'S THE NEXT ITEM THAT YOU HAVE, UH, FOR YOU FOR CONSIDERATION.

AND THIS WOULD ALLOW BRIANNA TO FOCUS EXCLUSIVELY JUST ON ANIMAL CONTROL SERVICES.

SO NOT ONLY ARE YOU GETTING THE ADDITIONAL NEW POSITION THAT WE JUST TALKED ABOUT, BUT A BIG PORTION OF HER TIME WILL THEN BE FREED UP TO BETTER, BETTER FOCUS ON THOSE JOBS.

AND AGAIN, I THINK BRIANNA'S DONE AN OUTSTANDING, IT'S EVERYBODY'S ALWAYS BEHIND ME HERE, SO , SO IT'S HARD TO FIND HER.

BUT I THINK SHE'S DONE AN OUTSTANDING JOB OF TRYING TO JUGGLE A LOT OF DIFFERENT DUTIES AND RESPONSIBILITIES.

THIS WILL GIVE HER A CHANCE TO, TO REALLY FOCUS ON, UH, SOMETHING THAT'S REALLY IMPORTANT TO THE CITY AND A GROWING NEED.

AND IN ADDITIONALLY, UH, THE CODE ENFORCEMENT FUNCTION IS ALSO IN NEED OF MORE RESOURCES.

SO THIS SUPERVISOR POSITION WILL HELP US FOCUS ON CODE ENFORCEMENT.

UH, WE'RE RECOMMENDING THAT NOT ONLY TO ADD THIS SUPERVISOR POSITION, BUT TO CHANGE WHERE IT ALSO REPORTS TO, INSTEAD OF REPORTING UP THROUGH THE CHIEF OF POLICE, IT WOULD REPORT TO BEAUTIFICATION SERVICES, WHICH IS UNDER CHANCE.

SO, UM, THAT'S THE, THE RECOMMENDATION FOR YOU HERE.

AGAIN, I THINK IT HELPS US BOTH FROM A CODE ENFORCEMENT STANDPOINT AND ANIMAL CONTROL.

UM, AND REALLY HELPS US TO, TO, TO REALLY ADVANCE TWO INITIATIVES THAT ARE REALLY IMPORTANT.

BEAUTIFYING THE CITY, KEEPING US UP TO CODE, AND ALSO FOCUSING ON ANIMALS.

MOTION OF PROOF.

SECOND.

MOTION BY MAYOR.

SECOND BY COUNCILOR FLORES SCALES THERE.

DISCUSSION ON THE MOTION.

ALL IN FAVORS.

AGAIN, I JUST WANNA SAY THANK YOU.

UH, UH, ANYTHING THAT HELPS TO, UH, PROVIDE GREAT SERVICE, UH, TO THE COMMUNITY.

I APPRECIATE THAT FOR CODE AND ANIMAL CONTROL.

ALRIGHT, ALL THOSE FAVOR SAY AYE.

ALRIGHT, CONTINUING ON, UH, STREET MAINTENANCE TECHNICIANS.

UH, THIS IS FOR THE CURB PAINTING PROGRAM.

I KNOW THAT WE'VE TALKED ABOUT THAT AT THE LAST MEETING ON, I BELIEVE, UM, 29TH.

I THINK IT WAS, UH, ABOUT TALKING THROUGH THIS.

SO WE WENT THROUGH AND LOOKED AT WHAT WOULD THE COST BE FOR THAT PROGRAM.

SO THIS WOULD INCLUDE TWO NEW STAFF MEMBERS, ALL OF THE EQUIPMENT, THE PAINT OBVIOUSLY, AND THE EQUIPMENT.

I THINK THERE'S A MACHINE THAT'S USED FOR THE CURB PAINTING PROGRAM.

SO THIS IS THE COST FOR THAT, UH, TO MEET THAT OBJECTIVE THE COUNCIL HAD ABOUT TRYING TO HAVE MORE CLEARLY DELINEATED AREAS WHERE PARKING'S ALLOWED, NOT ALLOWED.

AND TO, AND TO KEEP THOSE CURBS PAINTED FRESHLY AND MAKE SURE THEY LOOK NICE.

BRIAN, IF WE APPROVE THIS, WOULD THERE BE A POLICY BROUGHT FORWARD FOR US TO CONSIDER SO THAT WE WOULD KNOW WHERE THINGS GET PAINTED AND WHICH PORTIONS OF TOWN AND ALL THAT? YES SIR.

I THINK THAT'S A GREAT POINT.

WE DEFINITELY NEED TO BRING THAT FORWARD TO YOU SO WE COULD HAVE A LOT MORE PRECISION AROUND EXACTLY WHAT WE'RE TRYING TO DO.

SO YES SIR, WE WE COULD CERTAINLY DO THAT.

I'D LIKE TO MAKE A MOTION TO APPROVE SECOND MOTION BY MAYOR, SECONDED BY COUNCIL MEMBER FLORES CA.

IS THERE DISCUSSION ON THAT MOTION? I HAVE A QUESTION.

ARE THEY GOING TO BE ABLE TO DO ANY ADDITIONAL FUNCTIONS OTHER THAN STREET PAINTING? I'LL ASK, UH, HARPER TO ANSWER THAT QUESTION.

THAT'S A GOOD QUESTION.

DANIELLA.

IT WILL TAKE TO PAINT ALL THE STREETS WE HAVE TO PAINT, BUT THEN I'M THINKING ABOUT YEARS FORWARD, IF THE POSITION WILL, YOU KNOW, WE WILL REMAIN THE, THE POSITION WILL REMAIN, UH, FOR THIS, UH, TECHNICIANS.

HARPER WILDER, PUBLIC WORKS DIRECTOR.

UM, YES MA'AM.

UM, THEY'LL TIE RIGHT INTO OUR STREET MAINTENANCE.

THEY'LL BE PART OF OUR STREET MAINTENANCE GROUP, SO THEY'LL TIE RIGHT INTO THEM AND HELP THEM OUT.

UM, JUST SO FAR WE'VE ALREADY FOUND OVER 13,185 FEET OF PAINTINGS THAT NEED TO BE DONE, WHICH IS EQUIVALENT TO 44 FOOTBALL FIELDS IN LENGTH.

AND THAT'S NOT EVEN GETTING OUR STUDY BACK YET FROM OUR, UH, OUR, OUR STREET, UH, STUDY THAT WE'RE GONNA ANTICIPATE HAVING A WHOLE LOT MORE ONCE THAT'S COMPLETE BECAUSE THERE'S A SIGN STUDY INCLUDED IN THAT THAT ALL OF THE NO PARKING AREAS WE'RE LOOKING AT INCORPORATING ARE, ARE YOU GUYS INCORPORATING PRIVATE STREETS? , ? NO MA'AM.

WE HAVEN'T DONE, WE HAVEN'T, WE DIDN'T LOOK AT PRIVATE, I'M SORRY, ALL PUBLIC IN THE RIGHT OF WAY.

AND I'M JUST WONDERING BECAUSE I'M ASSUMING IT WILL TAKE, I DON'T KNOW HOW LONG

[02:00:01]

AND SO I JUST WANNA MAKE SURE THAT, THAT WHAT WHOEVER WE HIRE HAS THE CAPABILITY OF DOING SOMETHING ELSE.

THERE'S, THERE'S, YOU KNOW, THERE'S A LOT OF RED PAINT AND I I I'M TELLING YOU THAT THE, THE PROBLEM WITH THAT PAINT IS UH, WHEN THE SUN'S OUT AND ESPECIALLY LIKE IT IS RIGHT NOW, IT, IT'S YEAR ROUND THAT'S GONNA FADE AND THEN IT BECOMES PINK AND YOU HAVE TO CONSTANTLY MAINTAIN IT.

SO IT'S GONNA BE OVER AND OVER.

SO I HAVE A QUESTION.

SO THERE WOULD NOT BE RED PAINTING AROUND BUSINESSES 'CAUSE I SEE A LOT OF 'EM LIKE AT KOHL'S, H E V, THOSE CURBS ARE NOT, NOT ON THE PRIVATE PROPERTY.

NO SIR.

'CAUSE THAT'S PRIVATE PROPERTY INTERNAL TO THE BUSINESS, BUT EVERYTHING THAT'S ON PUBLIC RIGHT OF WAY.

SO SO YOU DRIVING DOWN SANDERS, THE OFFICE 35, THAT, THAT'S PAINTABLE BY THE CITY WHERE I DIDN'T, UM, OFF OF 35, THE THE OFF RAMPS, THOSE ARE TEXT DOT T TEXT DOT RIGHT OF WAY.

SO TDOT RIGHT OF AWAY ANYTHING IN TDOT RIGHT OF WAY, WE'D HAVE TO GET THEIR PERMISSION TO DO SOMETHING.

NOT SAYING WE COULDN'T, IF WE DID GET THEIR PERMISSION TO DO SOMETHING WE COULD, BUT AS OF RIGHT NOW, NO SIR.

IT'S ALL CITY PUBLIC RIGHT-OF-WAYS.

THANK YOU HARPER.

ANY FURTHER DISCUSSION? ALL IN FAVOR SAY AYE.

ALL OPPOSED.

MOTION CARRIES SEVEN TO ZERO.

ALRIGHT, THE LAST ONE I HAVE FOR YOU THIS EVENING IS A NEW POSITION, A DIRECTOR OF UTILITIES.

SO AS WE'VE CONTINUED TO LOOK AT OUR OPERATIONS, UH, BOTH IN PUBLIC WORKS AND IN ENGINEERING, WE FELT LIKE SOMETHING WAS MISSING FOR THE FOCUS THAT'S NEEDED FOR UTILITIES HERE.

I THINK, AGAIN, THIS IS NOT ABOUT ANYBODY DOING ANYTHING WRONG, BUT JUST REALLY TRYING TO WEAR TOO MANY HATS, DO TOO MANY THINGS, UH, AT ONCE.

AND SO CITY'S GROWN, WE BELIEVE WE NEED TO HAVE AN INDIVIDUAL FOCUS ON OUR UTILITY SYSTEM.

SO THIS WOULD BE FOR OUR WATER WASTEWATER SYSTEMS, THE RECLAIM WATER, ALL THE PLANS THAT ARE ASSOCIATED WITH THAT.

AS YOU KNOW, WE'RE LOOKING AT A HUNDRED MILLION DOLLAR EXPANSION FOR JUST THE WASTEWATER TREATMENT PLANT BY ITSELF.

WE ALSO HAVE A NEW WATER SOURCE COMING IN AND WE HAVE A LOT OF INFRASTRUCTURE THAT'S GONNA NEED TO BE BUILT IN THIS CITY OVER THE NEXT SEVERAL YEARS.

SO WE BELIEVE THAT ADDITIONAL FOCUS IS NEEDED FOR, UH, THE UTILITY FUNCTION.

AS YOU LOOK AROUND AT SOME COMPARABLE CITIES, AS YOU GET TO A SIZE, IT'S NOT UNCOMMON TO HAVE A DIRECTOR OF UTILITIES POSITION AND I BELIEVE THAT'S NECESSARY FOR US TO, TO MANAGE THESE ASSETS GOING FORWARD.

SO I RECOMMEND IT TO YOU FOR CONSIDERATION.

UM, WAS THERE A, SO THE REASONS FOR THE SPLIT IN THE PUBLIC WORKS, IS IT BECAUSE YOU NEEDED TO HAVE A NEW POSITION FOR THAT WAS YEAH, I JUST THINK, UH, RIGHT NOW WITH HARPER AND PUBLIC WORKS AND LEON IN ENGINEERING, THEY BOTH ARE RESPONSIBLE FOR DIFFERENT FUNCTIONS.

SO HAR HARPER'S JOB JOB IS TO MANAGE THE OPERATIONS FOR WATER AND WASTEWATER.

AND I THINK THEY DO A GOOD JOB, UH, CERTAINLY WITH THAT AND LEON HAS A COMPONENT OF THAT WITH THE ENGINEERING AND WORKING THROUGH THE ENGINEERING ELEMENTS OF IT.

BUT IT'S GOTTEN TO BE SUCH A SIZE AND COMPLEXITY AND, UM, THERE'S SO MANY FUNCTIONS THAT ARE THERE AND WITH ALL OF THE OTHER RESPONSIBILITIES THAT PUBLIC WORKS HAS, I BELIEVE IT'S HARD TO MANAGE ALL OF THAT WITH JUST ONE DIRECTOR LEVEL POSITION.

SO THAT'S THE REASON I WOULD RECOMMEND, UH, MORE FOCUSED EFFORT JUST ON THE UTILITY FUNCTION WITH ALL THE AREAS THAT, UM, WE'RE SEEING IN THERE.

AND, AND ONE LAST FOLLOW UP QUESTION.

IN DUE TIME, DO YOU THINK THIS, UH, NEW POSITION WOULD NEED A NEW ADMINISTRATIVE STAFF? UM, AND IF SO, WOULD THEY BE LOCATED AT PUBLIC WORKS OR MAYBE IN ANOTHER AREA? IT'S POSSIBLE.

WE WOULD, I I HAVEN'T ANTICIPATED THAT RIGHT NOW.

HOPEFULLY THERE CAN BE SHARING OF THE ADMINISTRATIVE STAFF IF YOU'RE TALKING ABOUT ADMINISTRATIVE ASSISTANCE AND THOSE KINDS OF THINGS.

HOPEFULLY THEY COULD BE SHARED, BUT OVER TIME AS THE CITY CONTINUES TO GROW, IT IS DEFINITELY POSSIBLE WE COULD HAVE SOME MORE OF THOSE THAT WE MIGHT NEED.

RIGHT NOW I DON'T HAVE ANYTHING PLANNED FOR THAT.

I'M EXCITED TO HAVE SOMEBODY WHO HOPEFULLY KIND OF CONNECTS BOTH DEPARTMENTS AND, I MEAN, ESPECIALLY WHEN WE WERE TALKING ABOUT THE BRINGING BACK THAT, UM, THE PURPLE PIPE, THE, YOU KNOW, THE WATER .

UM, I WANNA SEE THAT HAPPENING AS SOON AS POSSIBLE 'CAUSE I THINK WE REALLY NEED IT.

SO DO YOU THINK THIS POSITION WILL PROBABLY OVERSEE THIS PROJECT? YES.

THAT'S ONE OF THE THINGS THAT WE'D HAVE 'EM LOOK AT IS THAT'S COMPLICATED OF HOW YOU GET THAT INFRASTRUCTURE OUT TO THE RIGHT SITES AND HOW YOU, UH, DELIVER THAT, THAT KIND OF WATER.

BUT YES, WE DEFINITELY WOULD WANT THAT, THAT TO HAPPEN.

RECLAIM WATER MASTER PLAN? YES.

I JUST LOST IT.

I'M SORRY.

YES, I WANNA SEE THAT HAPPENING.

I, I WOULD LIKE TO SEE IF THAT POSITION CAN SEE IT ALL IMPLEMENTED WITHOUT THE HIRING OF ANY ADDITIONAL SERVICES.

OKAY, WE'LL LOOK AT IT.

I'D LIKE TO MAKE A MOTION TO APPROVE.

AGENDA ITEM NUMBER FIVE.

NUMBER FIVE'S.

WHAT'S WELL THE ITEM, ITEM FIVE.

[02:05:01]

MOTION BY COUNCILMAN FLORES, SECONDED BY COUNCILMAN PARSLEY THAT WE APPROVE THE DIRECTOR OF PUBLIC WORKS POSITION.

IS THERE DISCUSSION ON THAT MOTION? ALL IN FAVOR SAY AYE.

A AYE.

ALL OPPOSED, ALL MOTION CARRIES SEVEN TO ZERO.

I DO HAVE AN ITEM, UH, TO POTENTIALLY ADD ONTO THIS, BUT I'M REALIZING THE WAY IT'S WRITTEN.

CAN WE MAKE A SUGGESTION FOR AN AMENDMENT? YES SIR.

ON THIS ITEM? YES SIR.

SO, UM, I'VE BEEN HAVING SOME CONVERSATIONS WITH CHIEF TAYLOR IN THE LAST COUPLE DAYS WITH REGARDS TO SOME OF THE CHALLENGES THAT THEY'VE HAD, UH, FIGHTING THESE FIRES AS WELL AS SOME OF THE OTHER EMERGENCIES THAT THEY DEAL WITH.

UM, THEY ARE OF THE OPINION THAT IT WOULD BE, UH, GREATLY HELPFUL IF WE HAD A TRAILER FULL OF, UH, HAZARDOUS MATERIALS PREPARATION.

AND I AM NOT THE ONE TO MAKE THIS PITCH JUST AS AN F Y I, BUT THEY WERE LOOKING INTO IT AND THEY THINK IT WOULD COST AROUND $50,000.

THIS WOULD BE UNDER THE DEPARTMENT OF THE CITY UNDER OUR EMERGENCY, UM, UH, MANAGEMENT PROGRAM WHERE, AND THE IDEA WOULD BE THAT WILL WOULD COORDINATE WITH CHIEF TAYLOR TO MAKE SURE THAT THEY HAVE ESSENTIALLY A TRAILER FULL OF SUPPLIES THAT ARE READY TO, UH, BE UTILIZED IN, IN AN EMERGENCY.

AND SO IT COULD BE LIKE HAZMAT SUITS, IT COULD BE, UM, UH, I DON'T EVEN WANT TO, I DON'T EVEN WANNA TRY TO EXPLAIN ALL THE DIFFERENT THINGS, BUT, UH, IT WOULD BE ABOUT $50,000 ALL IN.

SO WHAT I WAS GONNA ASK, I JUST WANNA SPRING THIS ON YOU LATER.

SO WHAT I WAS GONNA ASK IS THAT WE CONSIDER EARMARKING $50,000 FOR EMERGENCY SUPPLIES, EQUIPMENT AND THEN ALLOWING, UH, OVER THE COURSE OF THE NEXT FEW MONTHS FOR UH, WILL AND CHIEF TAYLOR TO TALK ABOUT EXACTLY HOW THEY WOULD SPEND THAT AND THEN THEY COULD BRING IT BACK AND THEN WE WOULDN'T BE HAVING TO AMEND THE BUDGET AND WE CAN ALSO SIGNAL TO THEM THAT WE'RE OKAY SPENDING THIS AS A PREPARATION FOR FUTURE EMERGENCIES.

I WOULD BE, I WOULD LIKE THAT AS LONG AS IT'S AN ADDITIONAL 50,000 AND NOT COMING OUT OF THE ALREADY CREATED BUDGET FOR THE EMERGENCY, THAT THAT WOULD BE THE PLAN.

IF I MAY ADD ON THAT, 'CAUSE IF YOU LOOK AT THE SITUATION THAT HAPPENED IN WIMBERLEY AND OVER HERE, UH, LIKE JUST PITCHING YOUR HEAD THE PORTABLE GENERATORS THAT THEY COULD POSSIBLY NEED IN CASE THEY HAVE TO DO AN OVERNIGHT STAY SOMEWHERE, UM, THAT COULD PROVIDE SOME FORM OF ELECTRICITY OR SOMETHING LIKE THAT IF WE EVENTUALLY GET COOLING TENTS FOR FIREFIGHTERS.

SO IN THAT SENSE, AND JUST TO, TO KEEP IN MIND THOSE TYPE OF SUPPLIES, UH, PROBABLY EXTRA AIR TANKS AND JUST FOR STATE KITS REALLY? YEAH, WELL THAT'S, THAT'S EXACTLY IT.

BECAUSE YOU KNOW, THE EXAMPLE THAT THEY GAVE WAS IN THE, THE, THE, THE FIRE WE JUST HAD THE, THE 15 ACRE FIRE THAT WE JUST HAD.

UM, YOU KNOW, THEY DIDN'T HAVE ENOUGH WATER AND OUR PUBLIC WORKS DEPARTMENT, UH, HAD WATER TANKS THAT WE WERE ABLE TO BRING OVER, WHICH GREATLY ASSISTED IN PUTTING THAT FIRE OUT.

SO THE POINT BEING THAT EVEN THOUGH THE FIRE DEPARTMENT IS NOT A DEPARTMENT OF THE CITY, WE STILL SHARE RESOURCES AND YOU KNOW, IN TIMES OF NEED.

SO IN MY MIND IT WOULD BE GOOD FOR US TO BE STOCKED UP, BUT IT NEEDS TO BE, 'CAUSE IT'S NOT JUST FIRE, IT'S ALSO, YOU KNOW, GAS EXPLOSION OR UH, ANY NUMBER OF OTHER TYPES OF, YOU KNOW, CRAZY THINGS THAT ARE COMING DOWN THE PIPE FOR US.

'CAUSE THEY ARE.

ALRIGHT.

I'D LIKE TO MAKE A MOTION TO ADD $50,000 IN THE, UH, EMERGENCY MANAGEMENT DEPARTMENT'S BUDGET FOR, UM, HAZARDOUS MATERIALS PREPARATION AND DIRECT, UH, OUR EMERGENCY MANAGEMENT DIRECTOR, UH, TO COORDINATE WITH THE FIRE DEPARTMENT TO BRING A PROPOSAL FOR HOW BEST TO SPEND THAT MONEY.

SECOND MOTION BY THE MAYOR, SECONDED BY COUNCILLOR HEISER.

IS THERE DISCUSSION ON THE MOTION? ALL IS FAIR TO SAY? AYE.

ALL OPPOSED.

ALRIGHT, MOTION CARRIES.

THAT'S IT.

THAT'S ALL WE HAVE FOR YOU THIS EVENING.

THANK YOU SO MUCH FOR YOUR TIME.