Jul 26, 2025 City Council Special Meeting

[I) Call Meeting to Order and Roll Call]

[00:00:06]

GOOD MORNING EVERYONE. THE TIME IS 806. IT IS SATURDAY, JULY 26TH. AND I'M GOING TO CALL THIS SPECIAL CITY COUNCIL MEETING TO ORDER. WILL THE CITY SECRETARY PLEASE CALL ROLL? MITCHELL HEIZER HERE. RIZZO. PRESENT. ZUNIGA. PRESENT. HARRIS. HERE. MCKINNEY. HERE. TOBIAS. PRESENT.

OKAY. SIX MEMBERS PRESENT. WE HAVE A QUORUM. CITIZEN. COMMENTS. WE DO. RIGHT UP NEXT IS CITIZEN. COMMENTS. IS THERE ANYONE WHO WISHES TO COME UP TO SPEAK? SEEING NONE, WE'RE GOING TO CLOSE CITIZEN COMMENTS. IT IS NOW CLOSED. SO WE'RE GOING TO JUMP RIGHT INTO REPORTS AND

[III.1) Receive a presentation, hold a discussion, and provide staff direction regarding the City Manager's recommended operating and capital budgets totaling $603,537,633 for all city funds for Fiscal Year 2025-26.]

THAT'S A CHANGE. WE HAD THEM PREVIOUSLY ORGANIZED BY DEPARTMENTS AND BY TOPICAL AREAS. NOW IT'S BY THOSE STRATEGIC PLAN FOCUSED AREAS. SO HOPEFULLY YOU'LL LIKE THAT AND SEE THE CONNECTION TO THAT PLAN THAT WE'VE BEEN WORKING ON. AND THEN AT THAT POINT, ONCE I FINISHED THAT PORTION OF THE PRESENTATION, PERVEZ WILL GO THROUGH ALL OF THE PROPOSED FUND FINANCIALS. YOU DO HAVE A VERY LARGE, DETAILED BOOK BUDGET BOOK AS WELL THAT HAS ALL THIS INFORMATION IN IT, BUT WE'LL GIVE YOU THE HIGHLIGHTS OF THAT. PERVEZ WILL WALK YOU THROUGH THAT, AND THEN WE'LL TALK ABOUT THE PROPOSED CAPITAL IMPROVEMENT PROGRAM SPENDING PLAN. THAT IS A VERY LARGE PROGRAM, ABOUT $1.2 BILLION OVER THE NEXT FIVE YEARS. THAT'S ALL OF THE WATER, WASTEWATER, STREET PROJECTS, ALL THE MAJOR CAPITAL ITEMS THAT WE'VE BEEN TALKING ABOUT, HOW TO FUND THOSE OVER THE NEXT FIVE YEARS. AND THEN WE'LL RECAP IT AND TALK ABOUT THE NEXT STEPS.

AND THIS IS NOT CERTAINLY NOT THE LAST CONVERSATION THAT YOU'RE GOING TO HAVE ON THE BUDGET. THIS IS ONE OF THE MOST IMPORTANT ONES BECAUSE IT'S MY RECOMMENDED PROPOSED BUDGET TO YOU. AND THEN OVER THE NEXT COUPLE OF MONTHS, YOU'LL HAVE AN OPPORTUNITY TO DISCUSS IT FURTHER WITH THE COUNCIL, TALK ABOUT POTENTIAL CHANGES. AND THEN IN SEPTEMBER, YOU'LL BE ASKED TO VOTE ON THE BUDGET ITSELF. SO TODAY IS NOT A VOTE. SO DISCUSSION ANY THINGS THAT YOU THAT YOU THINK YOU'D LIKE TO SEE CHANGES ON. WE'RE LOOKING FOR SOME OF THAT DIRECTION THOUGH. ALL RIGHT. AGAIN THE BUDGET IS COMPLEX. THERE IS LOTS OF DIFFERENT PIECES TO IT. SO I WANTED TO GIVE YOU WHAT WE WHAT WE THINK ARE SOME OF THE KEY TAKEAWAYS FROM ALL THE INFORMATION THAT WE HAVE PRESENTED TO YOU. THE FIRST IS MAJOR CAPITAL PROJECTS ARE FUNDED. THIS IS A VERY LARGE NUMBER. $460 MILLION IS FOR MANY OF THE CAPITAL PROGRAMS THAT WE HAVE FOR JUST THIS COMING YEAR. THAT'S WATER, UTILITIES, STREETS, TRANSPORTATION AND PARKS PROJECTS. IT'S ALL INCLUSIVE NUMBER. WE DO HAVE ALSO ROAD PROJECTS. SEVEN ROAD PROJECTS WILL GO UNDER CONSTRUCTION IN THIS NEXT FISCAL YEAR. THAT'S ABOUT $131 MILLION IN FUNDING. THAT'S ALL RELATED TO THAT ROAD BOND PACKAGE THAT WAS APPROVED BY THE VOTERS IN 2022. AND THEN OF THAT NUMBER, WE ALSO HAVE ABOUT 241 MILLION. THAT'S RELATED TO WATER AND WASTEWATER PROJECTS. SO A LOT OF THESE MAJOR IMPROVEMENTS THAT WE'VE TALKED ABOUT, THE WASTEWATER TREATMENT PLANT IN PARTICULAR, IS A VERY LARGE CAPITAL ITEM THAT WILL BE UNDERWAY THIS COMING YEAR. PARK PROJECTS. WE HAVE ABOUT $30 MILLION IN FUNDING FOR COMING

[00:05:05]

WE'RE GOING TO DETAIL SOME OF THOSE FOR YOU TODAY. AGAIN, SOME OF THIS WILL BE A REVIEW BECAUSE YOU'VE SEEN SOME OF THESE, BUT IT'S A VERY LARGE AMOUNT, $21.5 MILLION THAT HAVE BEEN IDENTIFIED AND COST CONTAINMENT MEASURES JUST THIS PAST YEAR, WITHOUT THOSE SAVINGS, WITHOUT THOSE DIFFERENT PROGRAMS AND EFFICIENCIES THAT WE'VE DEVELOPED, YOU WOULD NOT BE ABLE TO DO ALL OF THE THINGS THAT ARE IN THIS BUDGET THAT ARE PROPOSED. SO THOSE ARE VERY IMPORTANT. WE LOOK AT THEM TOGETHER BEFORE WE ASK YOU FOR $1 FOR A NEW FUNDING, WE WANT TO DEMONSTRATE TO YOU THAT WE HAVE DONE EVERYTHING WE COULD TO BE EFFICIENT WITH THE DOLLARS THAT YOU'VE GIVEN US. SO ALL OF THOSE STRATEGIC INITIATIVES WILL DOES COST MONEY. THAT PROJECTED TAX RATE IS ABOUT $0.62. WE'RE IN THE PROCESS OF FINALIZING THAT. BUT WE'LL TALK ABOUT THAT A LITTLE BIT LATER IN THE PRESENTATION AS WE AS WE'RE GETTING THE FINAL CERTIFIED VALUES AND GETTING THOSE CALCULATIONS. MOST OF THAT INCREASE IS RELATED TO THE BOND PROGRAM AND RAISING THAT RATE UP TO PAY FOR ALL OF THE BOND PROJECTS. WE'VE TALKED ABOUT THAT SEVERAL TIMES, AND WE'LL HAVE A BOND ISSUE COMING FORWARD TO YOU ON AUGUST 5TH THAT WILL SOLIDIFY THAT BOND. SO THOSE ARE THE KEY TAKEAWAYS I WANT TO KEEP KEEP MOVING. ALL RIGHT. SO THE PROCESS AS I MENTIONED TO YOU, IT IS A LONG PROCESS FOR THE BUDGET. AND IT STARTS BACK IN EARLY PART OF THE YEAR. SO IN MARCH AS YOU'LL RECALL WE HAD THE VISIONING WORKSHOP. THAT WAS A REALLY A FOUNDATIONAL DISCUSSION THAT WE HAD FOR THE STRATEGIC PLAN. SOME OF THE MAJOR ELEMENTS THAT YOU WANTED TO INCLUDE, AND WE TALKED ABOUT THE BUDGET PROCESS THERE AS WELL. THEN WE HAD THE COMMUNITY SURVEY THAT WAS DONE IN APRIL, AND I'LL SHARE SOME OF THE HIGHLIGHTS OF THAT TO YOU AS WELL. AND THEN IN MAY AND JUNE, WE HAD A SERIES OF DIFFERENT BUDGET WORKSHOPS WITH YOU AND BUDGET PRESENTATIONS ON SOME DIFFERENT TOPICS ACROSS THE ORGANIZATION. LARGE AREAS THAT WE WERE LOOKING AT. TODAY, I'M GIVING THE CITY MANAGER'S RECOMMENDED BUDGET PRESENTATION. WE'LL HAVE A TAX RATE DISCUSSION LATER ON IN AUGUST, AND THEN IN SEPTEMBER. THERE ARE TWO VOTES THAT YOU'LL NEED TO MAKE FOR BOTH THE TAX RATE AND THE BUDGET ITSELF. THAT FINAL VOTE WILL BE ON SEPTEMBER 16TH. SO COMMUNITY SURVEY WANTED TO GIVE YOU AGAIN, JUST A RECAP OF SOME OF THE THINGS THAT WE SHARED WITH YOU BACK IN IN APRIL. WE SURVEYED 504 RESIDENTS. THIS IS A GOOD STATISTICAL SURVEY. SO IT'S MEANT TO BE A REPRESENTATION OF THE ENTIRE COMMUNITY, THE AREAS ON THE RIGHT AND THE YELLOW. THOSE ARE THE ONES THAT HAD THE MOST DISSATISFACTION WITH THEM. STREETS AND TRANSPORTATION, WATER AND WASTEWATER INFRASTRUCTURE. THOSE WERE AREAS THAT WERE WERE ISSUES. AND THEN WE ALSO ASKED THEM, WELL, OF ALL OF THESE THINGS, WHAT ARE YOUR TOP THREE PRIORITIES? AND YOU CAN SEE THOSE ON THE LEFT STREETS AND TRANSPORTATION, POLICE AND PUBLIC SAFETY, WATER AND WASTEWATER INFRASTRUCTURE.

AND YOU'LL SEE THAT THIS BUDGET ADDRESSES ALL THREE OF THOSE PRIORITIES, WITH LOTS OF FUNDING AND LOTS OF PROGRAMS TO IMPROVE THOSE SERVICES. SO THIS IS A CORE PART OF OUR PROCESS, IS TO REACH OUT TO THE COMMUNITY, SEE WHAT'S IMPORTANT. AND AS WE'RE BRINGING THAT FORWARD TO YOU, TRY TO ADDRESS THOSE PRIORITIES. SO I BELIEVE THIS BUDGET HAS DONE THAT. WE ALSO ARE, AGAIN, AS I MENTIONED TO YOU, REALLY FOCUSING ON ORGANIZING THIS BUDGET BASED ON THE STRATEGIC PLAN. THIS IS A VERY IMPORTANT DOCUMENT THAT REALLY OUTLINES EVERYTHING THAT WE'RE DOING ACROSS THE CITY. AND THE BUDGET ITSELF IS A CRITICAL DOCUMENT, IF NOT THE MOST IMPORTANT DOCUMENT, TO EXECUTE THE STRATEGIC PLAN WITHOUT THE BUDGET. THE WAY I ALWAYS TALK ABOUT THIS, IT'S INTERESTING CONVERSATION, BUT IF IT'S IN THE BUDGET, THAT'S WHAT GETS DONE.

SO THAT'S WHY WE SPEND SO MUCH TIME ON THAT WITH YOU, IS TO MAKE SURE THAT THE BUDGET REFLECTS YOUR PRIORITIES, THE THINGS THAT YOU WANT TO GET DONE AND THAT IT ACCOMPLISHES THE STRATEGIC PLAN. SO THAT STRATEGIC PLAN HAS BEEN DEVELOPED OVER A NUMBER OF MONTHS. AND AS YOU MAY RECALL, WE CAME UP WITH OUR NEW VISION STATEMENT, WHICH IS OVER HERE, THE UNDISPUTED REGIONAL LEADER IN VEHICULAR AND PEDESTRIAN MOBILITY, STATE OF THE ART PARKS AND SPORTS INFRASTRUCTURE. SO THAT'S SOMETHING THE COUNCIL CAME UP WITH AND AGAIN, FORMS THE BASIS FOR THIS PLAN MOVING FORWARD. THESE ARE THE STRATEGIC FOCUS AREAS. EXCELLENT AND ACCOUNTABLE CITY GOVERNMENT, SUSTAINABLE AND RESILIENT INFRASTRUCTURE, SAFE AND WELCOMING COMMUNITY, VIBRANT AND FUN DESTINATION, AND THRIVING AND PROSPEROUS ECONOMY. SO EACH OF THE NEXT FEW SECTIONS OF THIS PRESENTATION I WILL GO THROUGH BY THESE EACH OF THESE FOCUS AREAS AND TALK ABOUT THE PROGRAMS AND INITIATIVES AND THE FUNDING THAT'S IN EACH OF THESE.

[00:10:01]

WE'VE ALSO IMPLEMENTED THE NEW GENERATOR DOCKING STATIONS FOR OUR WATER SYSTEMS, WHICH HAS BEEN A LONG PROCESS AND COMPLICATED. BUT WE'VE WE'VE FINALLY GOTTEN THAT DONE. WE'VE ALSO REVIEWED HOW WE HANDLE PLAN REVIEWS AND DEVELOPMENT SERVICES AND LOOKED AT OUR PROCESSES AND PROCEDURES RELATED TO THAT. AND THEN WE BROUGHT FORWARD TO YOU A TWO PHASE CONTRACT STRATEGY FOR THE WASTEWATER TREATMENT PLANT, WHEN THAT HAS REDUCED THE TIME REQUIRED TO GET THAT PLANT ACTIVATED BY 21 MONTHS. SO THAT'S A SIGNIFICANT IMPROVEMENT AND GETS US TO WHERE WE NEED TO BE WITH THAT PLANT. AGAIN, ALL REVIEW ITEMS, BUT JUST PUTTING IT TOGETHER FOR YOU SO YOU CAN SEE IT. SO NOW I WANT TO TRANSITION INTO SOME OF THE COST CONTAINMENT ITEMS THAT WE HAVE MENTIONED TO YOU IN THE PAST. YOU'VE SEEN THESE IN DIFFERENT, DIFFERENT PIECES, BUT I DON'T THINK YOU'VE EVER SEEN IT PERHAPS ORGANIZED ALL TOGETHER. SO WE WANTED TO HIGHLIGHT THIS FOR YOU VERY QUICKLY. I'LL JUST RUN THROUGH SOME OF THESE. WE HAVE USED IN-HOUSE ELECTRICIANS FOR A LOT OF PARK INFRASTRUCTURE RATHER THAN CONTRACTING OUT THOSE SERVICES, AS WE'VE DONE IN THE PAST. THAT SAVED ABOUT $800,000 THIS JUST THIS PAST YEAR ON LOTS OF PROJECTS AND ALSO GOTTEN THE PROJECTS DONE QUICKER TOO, WHICH HAS BEEN AN IMPORTANT. WE'VE ALSO HAD PROCUREMENT SAVINGS THROUGH THE CONSOLIDATION OF HOW WE'VE MOVED SOME OF THE STAFFING AROUND AND REDUCE SOME OF THE DUPLICATION AND EFFORTS THAT WE HAD ACROSS THE ORGANIZATION. SO THAT SAVED US ABOUT 436,000. THE CUSTOMER SERVICE CONSOLIDATION AND REALIGNMENT WITH THE 311 SYSTEM HAS ALSO BEEN AN IMPROVEMENT, NOT ONLY ON SERVICE, WHICH IS THE MOST IMPORTANT THING, BUT IT'S ALSO SAVED QUITE A BIT OF MONEY, ABOUT $355,000. AS YOU MAY RECALL, OUR LEGISLATIVE PROGRAM OUTREACH WAS ABLE TO AVOID ABOUT $1 MILLION IN COSTS RELATED TO AN AT&T FIBER LINE THAT WE WERE STRUGGLING TO GET MOVED AND WAS GOING TO DELAY A PROJECT AND REQUIRE SIGNIFICANT CAPITAL INVESTMENT THROUGH OUR PROGRAM OUTREACH AND OUR CONTACTS. THROUGH THAT PROGRAM, WE WERE ABLE TO WORK WITH AT&T AND GET THAT FIXED, WHICH WAS A SIGNIFICANT IMPROVEMENT. AND THEN AS WE BROUGHT TO YOU A MONTH OR TWO AGO, WE HAVE RENEGOTIATED OUR CREDIT CARD PROCESSING CONTRACTS THAT WILL SAVE US ABOUT $780,000 THIS CURRENT YEAR AND ABOUT $2 MILLION MOVING FORWARD, WHICH IS A STAGGERING AMOUNT OF MONEY FOR ALL THE CREDIT CARDS THAT WE'RE LOOKING AT. BUT IT'S A SIGNIFICANT SAVINGS, AND WE'RE VERY PROUD TO BRING TO YOU THE SAVINGS FOR THE ROAD BOND PROJECT. WHEN WE BID THE COLAS AND BEEBE WEST PROJECT, WE WORKED HARD TO BRING THAT TO MARKET VERY QUICKLY, AND THAT HAS GENERATED $8 MILLION IN SAVINGS COMPARED TO WHAT THAT PROJECT WAS BUDGETED AT. SO THAT'S A SIGNIFICANT SAVINGS. A FEW OTHERS TO MENTION TO YOU, I MENTIONED BEFORE ABOUT THE GENERATORS FOR THE WATER FACILITIES. WE DID SECURE A GRANT FOR THAT, AND THAT GRANT IS ABOUT $1.3 MILLION. SO THAT'S FUNDING THAT WE DON'T HAVE TO PAY LOCALLY. SO THAT'S A GREAT THING. WE IMPLEMENTED THE NEW SLUDGE HAULING CONTRACT OVER AT THE WASTEWATER TREATMENT PLANT. YOU'VE TALKED ABOUT THAT A FEW TIMES. NOT ONLY IS THAT IMPROVED THE PERFORMANCE OUT AT THE PLANT, BUT IT'S ALSO SAVED US $300,000. WE'RE ALSO IMPLEMENTING THE NEW AUTOMATED METER INTEGRATION SYSTEM, AMI SYSTEM. WE'RE DOING A LOT OF THAT WORK ON OUR OWN WITH OUR OWN STAFF. RATHER THAN CONTRACTING THAT OUT, WE PROJECT THAT'S ABOUT 5 TO $6 MILLION IN SAVINGS RELATED TO THAT ACTIVITY. AND AS I MENTIONED EARLIER, WE'VE STREAMLINED SOME OF OUR INSPECTION AND PLAN REVIEW PROCESSES. THAT'S ABOUT ANOTHER $160,000 IN SAVINGS. AND AS YOU MAY RECALL, WE OUTSOURCED ALL OF OUR INSPECTION COSTS THIS PAST YEAR. AND THAT GENERATED $2.2 MILLION IN SAVINGS BY THIS THIS COMING YEAR, 2526. SO ALTOGETHER, IT'S A VERY LARGE, STAGGERING NUMBER, $21.5 MILLION

[00:15:01]

WE'RE ALWAYS LOOKING TO GET BETTER AS WE SEE ADDITIONAL OPPORTUNITIES FOR ADVANCEMENTS AND EFFICIENCIES. WE WILL BRING THOSE TO THE COUNCIL AND SHARE THAT WITH YOU. OKAY, SO THAT'S IT FOR THE FIRST STRATEGIC FOCUS AREA. NEXT UP IS A VERY LARGE ONE. OUR INFRASTRUCTURE SUSTAINABLE AND RESILIENT INFRASTRUCTURE. SO SOME OF THE THINGS I WANTED TO MENTION TO YOU IS, AS WE HAVE BEEN WORKING OVER THE LAST COUPLE OF YEARS WITH THE TEAM, IT WAS REALLY IMPORTANT TO SET THE FOUNDATION FOR HOW WE WERE GOING TO MOVE FORWARD IN SOME OF THESE PROJECTS TO MAKE SURE ALL OF THE PROJECTS WERE DONE PROPERLY, AND THAT MEANT WORKING ON A LOT OF MASTER PLANS. SO THERE'S BEEN A LOT OF THOSE THAT HAVE COME BEFORE YOU. YOU'VE SEEN THEM IN DIFFERENT COMPONENTS, BUT THESE ARE ACTIONABLE DOCUMENTS TO US. THESE ARE NOT THINGS THAT WE PREPARE AND SET ON THE SHELF. THESE ARE THINGS THAT WE WANT TO ACTUALLY SET IN MOTION. AND WE ARE DOING THAT. THE FIRST IS THE WATER MASTER PLAN. THAT IS A FOUNDATIONAL DOCUMENT TO US THAT REALLY HELPS US ESTABLISH WHERE WE'RE MOVING. IT IS GUIDING $387 MILLION IN INFRASTRUCTURE IMPROVEMENTS. SO WE'RE NOT GUESSING ABOUT WHERE THESE THINGS NEED TO GO. IT'S A VERY ORGANIZED APPROACH. WE ALSO HAVE THE SIDEWALK MASTER PLAN THAT WE'VE BROUGHT FORWARD TO YOU, AND YOU'LL SEE SOME OF THE SEGMENTS THAT WE'RE PROPOSING LATER ON IN THE PRESENTATION. WE HAVE THE WATER AND WASTEWATER IMPACT FEE STUDY THAT I JUST MENTIONED TO YOU BEFORE. WE ALSO DID A COST OF SERVICE AND RATE STUDY FOR WATER AND WASTEWATER, WHICH GUIDES WHAT DID THE RATES NEED TO BE BY EACH OF THE CLASSES, SO THAT WE'RE RECOVERING ALL OF THE COSTS PROPORTIONATELY FROM ALL OF OUR RATEPAYERS. SO ALL OF THOSE THINGS ARE MOVING US FORWARD TO ACTUALLY MAKE THESE PROJECTS A REALITY. WE DO HAVE A FEW OTHERS AS WELL. THE CAO MOBILITY PLAN IS UNDERWAY THAT PUBLIC OUTREACH WILL BE OPEN UNTIL THE END OF AUGUST, AND WE EXPECT THAT FINAL REPORT NEXT YEAR, WHICH WILL THEN GUIDE ADDITIONAL INVESTMENTS THAT WE'LL NEED TO MAKE IN INFRASTRUCTURE. AND WE'RE ALSO WORKING ON A FACILITIES MASTER PLAN, NOT NOT JUST ANY ONE PARTICULAR FACILITY, BUT CITY HALL. ALL OF THE DIFFERENT FACILITIES THAT WE HAVE AROUND TOWN. WHAT'S THAT OVERALL LONG TERM PLAN THAT WE NEED TO HAVE, AND WHERE DO WE NEED TO BE MAKING INVESTMENTS THAT WILL BE COMING BACK TO YOU IN SEPTEMBER? SO YOU'LL SEE THAT. AND LAST BUT CERTAINLY NOT LEAST, UNIFIED DEVELOPMENT CODE. THIS IS ALSO A VERY IMPORTANT PROCESS. AND DOCUMENT GUIDES ALL DEVELOPMENT STANDARDS ACROSS THE ORGANIZATION AND ACROSS THE

[00:20:03]

MGD IS THE CAPACITY OF THE PLANT. RIGHT NOW. WE'RE GOING TO SIX MGD BY AUGUST OF NEXT YEAR.

SO JUST ONE YEAR FROM TODAY, WE'LL BE HAVING THAT OPERATIONAL AND READY TO MOVE FORWARD. AND THEN THE SECOND PHASE OF THAT PROJECT TO GO TO NINE MGD WILL BE DONE BY AUGUST OF 28. ONE THING I WANTED TO REALLY MENTION TO THE COUNCIL TOO, IS, IS ALL OF THE OTHER IMPROVEMENTS OTHER THAN JUST THE CAPACITY OF THE PLANT. THERE'S OTHER IMPROVEMENTS THAT ARE BEING DONE TO BEAUTIFY THAT AREA AND MAKE SURE THAT WE'RE A GOOD NEIGHBOR TO THE NEIGHBORHOODS OUT THERE.

A MASONRY WALL WILL BE CONSTRUCTED AROUND THE ENTIRE PLANT TO PROVIDE GOOD SCREENING.

WE'LL ALSO HAVE A LANDSCAPING BUFFER AROUND THE PLANT TO PROVIDE GOOD SCREENING TO THE NEIGHBORHOOD. IF YOU HAVEN'T SEEN THE ACCESS ROAD THAT WE'RE BUILDING OUT THERE, WE WILL HAVE BE HAVING A RIBBON CUTTING FOR THAT IN THE NEAR FUTURE TO IT'S A ROAD TO PROVIDE ACCESS FOR TRUCKS TO THE PLANT, WHICH IS NORMALLY NOT SOMETHING TO GET TOO EXCITED ABOUT, BUT THIS WILL DIVERT ALL OF THAT TRAFFIC OUT OF THE NEIGHBORHOOD AND BACK INTO HEIDENREICH ROAD. SO WE'RE REALLY EXCITED TO BE ABLE TO HAVE THAT ROAD COMPLETED AND BE ABLE TO GET ALL THAT TRUCK TRAFFIC OFF OF THE MAJOR RESIDENTIAL STREETS. AND AS MIKE MURPHY MENTIONED BEFORE, AT THE LAST MEETING, THE RECLAIMED WATER FILL STATION, WE'RE HOPEFULLY GOING TO ACTIVATE THAT IN THE NEAR FUTURE. AND THAT WILL PROVIDE CONSTRUCTION WATER THROUGHOUT THE COMMUNITY RATHER THAN USING POTABLE WATER FOR THAT. SO LOTS OF THINGS HAPPENING IN THE WASTEWATER

[00:25:03]

TRANSPORTATION. THIS IS ONE THAT EVERYBODY'S VERY EXCITED ABOUT, THAT THESE PROJECTS ARE MOVING FORWARD. SOME OF THESE WILL BE PAINFUL WHEN THEY'RE UNDER CONSTRUCTION, BUT WE'RE REALLY EXCITED TO GET THEM MOVING. THERE'S ABOUT $359 MILLION IN FUNDING IN THIS FIVE YEAR CIP FOR 23 ROAD PROJECTS. SO IT'S A SIGNIFICANT AMOUNT OF MONEY THAT WE'RE LOOKING AT. SO ABOUT 89 MILLION FOR 15 CIP ROAD PROJECTS NOT RELATED TO THE ROAD PACKAGE. I'LL GIVE YOU SOME OF THE HIGHLIGHTS. AS I MENTIONED BEFORE, THE ROUNDABOUTS ON COLAS, THOSE ARE THREE SIGNIFICANT PROJECTS. $25.2 MILLION IN FUNDING IS PROVIDED IN THIS BUDGET. TO CONSTRUCT THOSE ROUNDABOUTS. WE HAVE $12 MILLION IN FUNDING FOR THE KYLE CROSSING AND MARKETPLACE ROUNDABOUTS AT COLAS, THOSE TWO CRITICAL INTERSECTIONS. ADDITIONALLY, WE HAVE THAT RAILROAD OVERPASS GOING OVER THE RAILROAD ON COLAS. WE'RE FUNDING 7.1 MILLION, AND WE'RE EXPECTING TO GET THE REST THROUGH GRANTS AND PARTNERSHIPS. WE ALSO HAVE 7.7 MILLION FOR THE DOWNY AND DAISY ROUNDABOUT. AS YOU AS YOU MAY RECALL, WE HAVE SOME TEMPORARY LIGHTS OVER AT THAT LOCATION. THIS WILL BE TO FUND THE PERMANENT ROUNDABOUT AT THAT LOCATION. AND THEN WE HAVE 15.4 MILLION FOR ROUNDABOUTS AT DACEY AND BUNTEN AND SPRING BRANCH AND BURLESON. SO THOSE ARE ALL INCLUDED IN THE CIP. AND THEN YOU CAN SEE THE OTHER PROJECTS THAT WE HAVE FROM THE ROAD, BOND PROJECTS THAT WERE APPROVED IN 22, ABOUT 131 MILLION IN THIS PROGRAM MOVING FORWARD. BRIAN, JUST REAL QUICK, IS THE DAISY BUNTON ROUNDABOUT. IS THAT THE ONE THAT WAS UNDERSIZED THAT'S CURRENTLY THERE? I GUESS THAT'S A SMALL ONE. WELL, THIS IS ONE THAT WOULD BE THIS ONE THAT WOULD BE ADDED. IT'S A IT'S A IT'S A RED LIGHT RIGHT NOW. THIS WOULD BE A PROPOSED ROUNDABOUT AT THAT LOCATION OKAY. SO I GUESS WHEN WE'RE LOOKING AT ROUNDABOUTS, I GUESS THE ONE THAT'S CURRENTLY DOWN THERE, I GET A LOT OF CASSETTE OF RANCH ARE YOU TALKING ABOUT THAT RANCH THAT'S GOING TO IT'S LIKE WHEN THE BUSSES ARE GOING THROUGH THAT, IT'S ALMOST LOOKS LIKE IT'S GOING TO GO PAST. RIGHT? I BELIEVE THAT ONE IS BEING EXPANDED AS PART OF THE ROAD PACKAGE AND TREMBLE IF THAT'S INCORRECT. YES. SO THAT'S GOING TO BE EXPANDED AND WIDENED A LITTLE BIT. IT IS A THAT IS A NARROW ROUNDABOUT. I THINK ROUNDABOUTS ARE VERY EFFECTIVE IF THEY'RE DESIGNED PROPERLY. AND SO I THINK THAT ONE IS NARROW. YES, SIR. JUST WANT TO KEEP IT IN OUR MIND. NO, ABSOLUTELY. THANK YOU. ALL RIGHT. WE'RE JUST FLYING ONLY 80 OR 90 SLIDES LEFT OKAY, PICK UP THE PACE. KEEP MOVING. OKAY, SO MORE THINGS ON ROADS THAT I WANTED TO MENTION TO YOU. WE DO HAVE QUITE A BIT OF FUNDING IN PLACE FOR ROAD PRESERVATION AND MAINTENANCE. $1.5 MILLION IS INCLUDED IN THIS YEAR'S BUDGET FOR ROAD MAINTENANCE. THAT IS SIGNIFICANTLY MORE THAN WHAT WE HAD A FEW YEARS AGO, AND IT'S BASED ON OUR PAVEMENT CONDITION STUDY THAT WE DID THAT WHAT THEY CALL THE PCI STUDY. IT'S DESIGNED TO KEEP THE QUALITY OF THE ROADS AT ABOUT 82.5. WE ALSO HAVE FUNDING IN THIS BUDGET FOR SIDEWALKS, ABOUT ABOUT $1 MILLION, 966,000 FOR SIDEWALK IMPROVEMENTS AND $4.8 MILLION OVER THE FIVE YEAR PROGRAM. OF THAT, ABOUT 700,000 IS FUNDING THAT WE HAVE IN CIP AND A 266,000 FOR OUR COMMUNITY DEVELOPMENT BLOCK GRANT FUND, CDBG SOME OF THE SIDEWALK PROJECTS THAT WE'RE PROPOSING HERE ARE VETERANS DRIVE, KOHLER'S FILOMENA F150, AND BUNTON CREEK ROAD. AGAIN, THOSE ARE ALL SOME OF THE GAPS THAT WE IDENTIFIED IN THAT SIDEWALK MASTER PLAN. WE ALSO HAVE FUNDING OF $750,000 FOR OUR FLEET MANAGEMENT, IMPLEMENTATION AND TRANSITION. ONE OF THE THINGS THAT WE'VE BEEN WORKING ON IS HOW TO BETTER MANAGE THAT OPERATION. WE'VE BROUGHT ON A NEW FLEET MANAGER AND LOOKING AT TRYING TO GET AWAY FROM HAVING ALL OF OUR VEHICLES LEASED. SO THIS IS A TRANSITIONAL PLAN TO MOVE US INTO WHERE WE CAN CASH FUND THAT AND HAVE A VEHICLE REPLACEMENT PROGRAM MOVING FORWARD. AGAIN, ABOUT $750,000 IN A VARIETY OF DIFFERENT AREAS HERE. VIBE TRAIL IS ALSO ONE OF THE THINGS THAT WE'VE BEEN WORKING ON IN OUR INFRASTRUCTURE PROGRAM TO MAKE SURE WE BUILD THIS OUT IN ACCORDANCE WITH THE PLAN, YOU CAN SEE TO THE RIGHT THE OVERALL PLAN. ALL OF THESE ARE IN YELLOW OF THE VIBE TRAIL COMPONENTS. ALL OF OUR ROAD BOND PROJECTS HAVE A TRAIL COMPONENT, SO THOSE WILL BE CONSTRUCTED. RIGHT NOW WE HAVE ABOUT 16 MILES

[00:30:02]

AND UNDER OF THAT, ABOUT 8.98 MILES WILL BE UNDER CONSTRUCTION THIS COMING YEAR. AND YOU CAN SEE ALL THE VARIOUS SEGMENTS HERE. SO AGAIN, AS I MENTIONED TO YOU, THE SISSETON OLD STAGECOACH ROAD, ALL OF THOSE WILL BE PART OF THOSE PROJECTS. AND YOU'LL START SEEING THESE, THIS, THIS TRAIL SYSTEM REALLY COME TO LIFE IN THIS COMING YEAR. SO WE'RE EXCITED ABOUT THAT. ONE OTHER THING WE WANTED TO MAKE MENTION TO THE TO THE COUNCIL AND THE PUBLIC IS OUR WIRELESS TRANSMISSION FACILITIES THAT WE'VE BEEN WORKING ON. THESE ARE THE CELL PHONE TOWERS THAT WE'VE WORKED ON FOR THE PAST SEVERAL MONTHS TO COME UP WITH A PLAN ON THE RIGHT HAND SIDE OF THIS, THIS GRAPHIC, YOU CAN SEE THE EXISTING MOBILE COVERAGE THAT WE HAVE, AND IF IT'S RED OR YELLOW, IT'S BAD. SO ALL OF THE CITY LIMITS YOU CAN SEE IS NOT VERY GOOD ON CELL PHONE COVERAGE. I THINK WE ALL EXPERIENCED THAT DRIVING AROUND TOWN. YOU HAVE CALLS THAT GET DROPPED OR YOU CAN'T GET GOOD SIGNALS. THAT'S WHAT OUR CURRENT COVERAGE LOOKS LIKE. WE'RE PROPOSING THREE NEW SITES BE DEVELOPED FOR CELL PHONE COVERAGE. AND ON THE RIGHT YOU CAN SEE WITH THOSE THREE SITES HOW COVERAGE WILL BE IMPROVED. A LOT MORE GREENS, A LOT MORE SHADES OF GREEN ON THIS. IT'S NOT PERFECT, BUT IT WILL HAVE A TREMENDOUS BENEFIT ON THE COMMUNITY. WE ESTIMATE ABOUT 58,000 RESIDENTS WILL SEE IMPROVEMENT IN THEIR CELL PHONE COVERAGE OUT OF THAT, WHICH IS GREAT. IT'S GREAT TO HAVE THE COVERAGE, BUT IT'S ALSO A REVENUE OPPORTUNITY FOR US AS WELL. SO YOU CAN SEE THE 30 YEAR PROJECTED LEASE REVENUE THAT WE'RE SHOWING $4.3 MILLION OVER THIS 30 YEAR PERIOD BY THESE THREE SITES ALONE. SO THAT'S A CAPITAL PROJECT THAT WE'VE BEEN ABLE TO PAY FOR BY DOING THESE TRANSMISSION FACILITY TOWERS, WHICH IS GREAT, BUT IT'S ALSO THE SERVICE. SO IT'S A TRUE WIN WIN FOR THE COMMUNITY. WE EXPECT THESE TO BE UP AND RUNNING IN THE NEXT 9 TO 10 MONTHS, SO WE'RE EXCITED ABOUT THAT. I CAN TELL YOU'RE ALL EXCITED TOO. YOU LOOK VERY EXCITED OKAY. AND THAT'S ONLY THAT'S ONLY CELL PHONE COMMUNICATION RIGHT? NOT VIDEO SURVEILLANCE. WHAT IS THAT THAT CELL PHONE COMMUNICATION.

YES, SIR. YES. YEAH. THE BEAUTY OF IT, WE'LL BE ABLE TO MAKE CALLS FROM ANYWHERE IN TOWN WITHOUT WI-FI. THAT'S RIGHT. AND WE DO HAVE OTHER LOCATIONS THAT WE'RE LOOKING AT AS WELL.

THERE'S STILL SOME AREAS ON THE WEST SIDE OF THE CITY THAT NEED SOME BETTER COVERAGE. THEY'RE CONTINUING TO LOOK FOR OPPORTUNITIES TO PARTNER WITH COMMUNICATION COMPANIES. ALL RIGHT. THAT'S THE BIGGEST ONE. SO NOW TO THE SAFE AND WELCOMING COMMUNITY ASPECT OF THE STRATEGIC PLAN. THE POLICE DEPARTMENT IS A HUGE COMPONENT OF OUR COMMUNITY BEING SAFE. AND FOR THAT REASON, WE'VE BEEN WORKING WITH CHIEF BARNETT AND HIS TEAM FOR THE LAST SEVERAL MONTHS TO PUT TOGETHER THIS BUDGET. AS YOU MAY RECALL, WE DID THE MATRIX STAFFING STUDY BACK IN 2024. THAT WAS A COMPREHENSIVE LOOK AT OUR STAFFING LEVELS AND THE SERVICE DEMANDS THAT WE HAD, AND GAVE US A BLUEPRINT OVER THE NEXT SEVERAL YEARS FOR WHAT THAT SHOULD LOOK LIKE. I MENTIONED TO YOU BEFORE THE MEET AND CONFER AGREEMENT THAT WAS APPROVED IN JUNE BY THE COUNCIL, AND THAT PROVIDES THAT COMPETITIVE COMPENSATION AND A FEW OTHER THINGS FOR THE DEPARTMENT AND THE CITY. IT WAS A GREAT PARTNERSHIP, AND WE'RE EXCITED TO BRING IT TO A THREE YEAR AGREEMENT. WE'VE ALSO HAD INCREASED COMMUNITY ENGAGEMENT.

THE DEPARTMENT AND THE CITY HAVE BEEN WORKING TO REALLY HAVE BETTER OUTREACH, BETTER RECOGNITION PROGRAMS, TRANSPARENCY FOR ALL THE THINGS THAT WE DO. AND WE'VE SEEN A LOT OF REALLY GREAT COMMUNITY FEEDBACK ON THAT. PEOPLE REALLY LIKE TO SEE THAT. WE'VE ALSO CREATED THE MENTAL HEALTH DASHBOARD. IT'S A NEW DASHBOARD THAT COMPLETED IN 2025. IT HELPS MAKE SURE THAT PEOPLE ARE GETTING THE RIGHT SERVICES, AND THAT WE'RE SENDING PEOPLE THAT CAN ACTUALLY HELP SOMEONE, RATHER THAN ALWAYS AN OFFICER. SOMETIMES IT'S THE MENTAL HEALTH TEAM THAT GOES OUT AND HELPS AN INDIVIDUAL RATHER THAN JUST AN OFFICER. AND OUR RESPONSE TIMES FOR PRIORITY ONE CALLS. THESE ARE OUR MOST SERIOUS, MOST PRESSING CALLS. WE'RE VERY PROUD TO SEE THAT OUR RESPONSE RATE IS REALLY STRONG AT 5.76 MINUTES. SO THAT'S VERY STRONG. ANYTHING UNDER SIX MINUTES IS EXCELLENT. SO WHERE ARE WE HEADED? WE HAVE SEVERAL NEW PROGRAMS THAT WE'RE PROPOSING IN THIS BUDGET. THESE ARE THE ONES. MANY OF THESE WERE OUTLINED BY CHIEF BARNETT IN HIS PRESENTATION, I BELIEVE BACK IN JUNE OR LATE MAY. THE FIRST OF THOSE IS RECOMMENDING A DRONE PROGRAM BE CREATED. THIS WOULD BE DRONE FOR $150,000. THIS WOULD BE LAUNCHED FROM THE PUBLIC SAFETY CENTER. WHEN THERE IS AN INCIDENT, IT WOULD FLY DIRECTLY TO THAT SCENE, PROVIDE REAL TIME INFORMATION TO THE OFFICERS AS THEY'RE GOING TO THAT AREA. SO WE'RE REALLY EXCITED TO BRAND NEW TECHNOLOGY. I THINK THIS WOULD BE THE FIRST IN CENTRAL TEXAS TO HAVE THIS TECHNOLOGY DEPLOYED. THERE'S ONE OTHER THAT THAT BEAT US BY A FEW MONTHS UP IN NORTH TEXAS TO BE THE FIRST IN TEXAS. BUT WE'RE EXCITED TO BRING THIS FORWARD. WE HOPE THIS WILL PROVIDE, YOU KNOW, IT'S SOMETHING THAT CAN BE VERY QUICKLY TO THE SCENE TO PROVIDE CRITICAL INFORMATION, TO GET THE RIGHT FIRST RESPONDERS TO IT AS OUR AS OUR TEAM IS IN ROUTE. SO IT'S A SERVICE TO THE

[00:35:02]

YES, SIR. WE'RE ALSO PROPOSING THE NEW K9 UNIT BE CREATED THAT THE CHIEF HAD MENTIONED TO YOU.

WE'RE ALSO PROPOSING A NEW EMERGENCY MANAGEMENT PLANNER POSITION BE INCLUDED IN THIS BUDGET. AND WE ALSO HAVE, EXCUSE ME, FUNDING FOR THE NEW. NEED A LITTLE BIT MORE COFFEE? WE'RE ALSO PROPOSING THAT WE HAVE FUNDING TO INSTALL SOME OF OUR EMERGENCY SIRENS. WE'VE WENT THROUGH A PROCESS TO EVALUATE WHAT TYPE OF TECHNOLOGY NEEDS TO BE THERE, WHAT ARE THE RIGHT LOCATIONS THAT'S EXPECTED TO BE COMPLETED IN THE NEXT MONTH OR TWO BY THAT CONSULTANT? AND THEN THIS BUDGET INCLUDES FUNDING TO ACTUALLY BEGIN IMPLEMENTING THOSE SIRENS. THERE'S $150,000 FOR THAT. SO YOU'LL SEE THOSE IN THE FUTURE. WE ALSO HAVE FUNDING FOR THE FLEET MANAGEMENT OF THE OF THE POLICE DEPARTMENT. THERE'S A POSITION TO HELP BE A TECHNICIAN THAT'S BEING ADDED TO HELP PROVIDE SUPPORT THERE. AND THEN LAST BUT CERTAINLY NOT LEAST, ANIMAL SERVICES. WE ARE PROPOSING THAT THIS BE A NEW BUDGET OUTSIDE OF THE POLICE DEPARTMENT WITH A NEW DIRECTOR LEVEL POSITION. THIS WILL BE A MID-YEAR ADD AS WE'RE BUILDING OUR NEW ANIMAL SERVICES BUILDING. THIS WILL BE A POSITION THAT WE BRING IN TO HELP US FINALIZE THAT AND THEN SET UP OUR OWN PROGRAM MOVING FORWARD. SO THESE ARE SOME OF THE NUMBERS THAT YOU CAN SEE.

AGAIN, 150,000 FOR DRONE SAFETY, $150,000 FOR THE EMERGENCY ALERT SIRENS. AND THEN YOU HAVE THE THREE POSITIONS THE POLICE K9 OFFICER AND THE K9 ITSELF, 136,000, THE EMERGENCY MANAGEMENT PLANNER, THE FLEET TECHNICIAN, AND THE DIRECTOR OF ANIMAL SERVICES. THE MEET AND CONFER AGREEMENT IS ALSO $1.2 MILLION, A VERY SUBSTANTIAL INVESTMENT THAT WE MADE IN THIS POLICE DEPARTMENT THIS YEAR. SO ALTOGETHER, A NEW INVESTMENT OF ABOUT $1.9 MILLION FOR THIS COMING YEAR FOR THE POLICE DEPARTMENT. SO WE'RE HAPPY TO BRING THAT FORWARD TO YOU AND SHARE THAT WITH YOU. ALL RIGHT. NEXT UP, VIBRANT AND FUN DESTINATION. I'M GOING TO DO MY BEST TO MAKE IT FUN. ALL RIGHT, ALL RIGHT I KNOW IT'S STILL EARLY. ALL RIGHT. SO FOR PLANNING TO PROGRESS AGAIN LOTS OF THINGS THAT WE'VE BEEN DOING WORK BEHIND THE SCENES TO GET US TO THE MOMENT WHERE WE'RE READY TO SPRING FORWARD INTO ACTUALLY DELIVERING PROJECTS. AND THESE ARE SIGNIFICANT ITEMS THAT WE'VE HAD. THE PARKS, RECREATION AND OPEN SPACE PLAN, THE PROS PLAN.

WE DID APPROVE. THE COUNCIL APPROVED THAT IN MAY OF 25. THAT WILL GIVE US A TEN YEAR ROADMAP OF HOW WE'RE GOING TO BE BUILDING OUT OUR PARK SYSTEMS. IT'S VERY IMPORTANT. THE COUNCIL ALSO ADOPTED THE SPORTSPLEX MASTER PLAN IN JULY 25TH. WE'LL BE WORKING ON IMPLEMENTING THAT.

MANY OF YOU ATTENDED THE REPUBLIC DRIVE FACILITY. WE'RE REALLY PROUD TO HAVE THAT RIBBON CUTTING EARLIER THIS MONTH, AND PROVIDES A GREAT FACILITY FOR THE PARKS DEPARTMENT TO HAVE AS THEY'RE EXPANDING THEIR OPERATION, AND ALSO HAS SOME COMMUNITY SPACE OUT THERE AS WELL. THE MOBILE LIBRARY, WE DID HAVE THAT RIBBON CUTTING IN MAY OF 25, AND IT'S BEEN GOING AROUND THE COMMUNITY SERVING LOTS OF RESIDENTS AND LOTS OF DIFFERENT WAYS. YOU'LL SEE IT NEXT WEEK. IF YOU HAVEN'T HAD A CHANCE AT THE RIBBON CUTTING FOR MARKETPLACE. WE'RE ALSO WORKING ON THE PUBLIC ART MASTER PLAN THAT WILL THE PUBLIC COMMENT WILL CLOSE. LOOKS LIKE IT CLOSES ON 28TH. SO JUST NEXT WEEK. AND THAT WILL HELP US GUIDE WHAT THOSE PUBLIC ART PIECES ARE GOING TO BE. THE LIBRARY MASTER PLAN IS ALSO UNDERWAY. WE EXPECT THAT LATER THIS YEAR, AND THEN THE LAKE KENSINGTON MASTER PLAN IS UNDERWAY. THAT DESIGN CONSULTANT HAS BEEN SELECTED AND WE EXPECT TO COMPLETE THAT EARLY NEXT YEAR. SO LOTS OF DIFFERENT THINGS TO MANAGE, PROJECTS TO MAKE SURE WE'RE PUTTING THE RIGHT DOLLARS IN THE RIGHT AREAS. WE'RE ALSO WORKING ON THE 1500 DACEY LANE FACILITY DESIGN THAT IS UNDERWAY. WE EXPECT THOSE BIDS TO COME BACK IN THE NEXT COUPLE OF MONTHS. CONSTRUCTION IS EXPECTED IN SEPTEMBER, AND WE HOPE TO OPEN THAT FACILITY AND HAVE A RIBBON CUTTING ON THAT ONE. I KNOW THAT WILL BE A WELL-DESERVED RIBBON CUTTING FOR THE COUNCIL IN JANUARY OF 26, AND FOR THE COMMUNITY JUST THIS PAST WEEK.

WE CUT THE RIBBON ON THE LAKE KYLE FITNESS COURT. WE HAD A LOT OF FOLKS OUT THERE. THAT WAS A REALLY GREAT TIME FOR THE COMMUNITY TO SEE THAT. AND THEN WE HAVE MANY DIFFERENT PROJECTS UNDERWAY FOR 2425. THERE'S A LOT OF THOSE IN PARKS, YOU KNOW, ABOUT THE ALL WHEELS SKATE PARK THAT WE'RE DOING THAT WE'RE EXCITED TO BRING THAT FORWARD. LAKE KENSINGTON, AND WE HAVE A NUMBER OF IMPROVEMENTS AT STEEPLECHASE AND WATER LEAF. WE'LL HAVE GROUNDBREAKINGS OR

[00:40:01]

LOOKING FOR DAVID. THERE HE IS IN THE BACK. AUGUST. RYAN, I JUST WANT TO THANK STAFF AND COUNCIL FOR BRINGING THIS FITNESS COURT TO LAKE KYLE. I WAS YOU KNOW, I WAS WRONG AND I THOUGHT IT WAS IT WOULDN'T WORK, IT WOULDN'T FIT. BUT I NOTICED THE RIBBON CUTTING AND A LOT OF PEOPLE ENJOY IT. SO THAT WAS REALLY GREAT TO SEE. SO THANK YOU FOR BRINGING THAT TO. IT'S A REALLY NICE PROJECT. THANK YOU. COUNCIL MEMBER. IT WAS GREAT TO SEE WHEN I'M WRONG I'LL OWN IT.

SO I WAS WRONG ABOUT THAT. THAT ONE. GREAT. WE HAD A GREAT FITNESS CHALLENGE OUT THERE BETWEEN POLICE AND FIRE, AND I DIDN'T EVEN WANT TO GET ON THE FITNESS COURT AT THE SAME TIME THOSE GUYS WERE THERE. IT WAS VERY IMPRESSIVE. WE'RE MOVING FORWARD. OKAY, SO WHERE WE'RE HEADED, EVEN MORE THINGS PLANNED FOR PARKS AND LIBRARIES IN THIS COMING YEAR. SO IN THIS BUDGET MOVING FORWARD, WE'RE PROPOSING A NEW SPECIAL EVENTS COORDINATOR POSITION BE INCLUDED. AS YOU KNOW, OUR EVENTS CONTINUE TO GROW. WE HAVE MORE, MORE AND MORE OF THEM ALL THE TIME, WHICH IS GREAT FOR THE COMMUNITY, BUT THEY ARE TIME CONSUMING. WE NEED SOME ADDITIONAL SUPPORT THERE FROM THE TEAM. WE ALSO HAVE SOME PROGRAM IMPROVEMENTS THAT ARE PROPOSED. WE'RE LAUNCHING THE CPR CERTIFICATION AND THE JUNIOR LIFEGUARD TRAINING, AS WELL AS THE VOLUNTEER ENGAGEMENT PROGRAM. WE'RE ALSO PROPOSING A RECREATION SERVICES SUPERVISOR AT THE DACEY FACILITY. SO WHEN THAT FACILITY OPENS, WE'RE GOING TO NEED TO HAVE SOMEONE THERE THAT'S THERE TO MANAGE THE FACILITY AND MAKE SURE THAT ALL OF THE DIFFERENT EVENTS THERE GO OFF PERFECTLY. IN THE LIBRARY SYSTEM, WE'RE PROPOSING A YOUTH SERVICES LIBRARY POSITION BE ADDED FOR THAT OPERATION. IT'S IMPORTANT TO CONTINUE TO MOVE THAT FORWARD. WE HAVE TREMENDOUS DEMAND WITH LESLIE'S LEADERSHIP.

WE'RE GETTING LOTS OF USE AT THE LIBRARY, AND WE WANT TO MAKE SURE WE HAVE SUPPORT FOR THAT.

WE ALSO HAVE A TECHNOLOGY UPGRADE. ONE OF THE BIGGEST AREAS THAT WE SEE USED IN THE LIBRARY IS OUR COMPUTERS, OUR PUBLIC COMPUTERS. AND THIS WILL REPLACE ALL OF THOSE COMPUTERS THAT, THAT, THAT CENTER. AS I MENTIONED TO YOU BEFORE EARLIER IN THE PRESENTATION, WE HAVE SIGNIFICANT PROJECTS UNDERWAY FOR PARKS AND RECREATION, ABOUT 96 MILLION IN THE FIVE YEAR CAPITAL IMPROVEMENT PROGRAM. AND OF THAT, ABOUT $30 MILLION IS PLANNED FOR THIS COMING YEAR.

AND THESE ARE THE PROJECTS ALL WILL SKATE PARK, LAKE KENSINGTON. THOSE ARE TWO VERY SIGNIFICANT PROJECTS THAT WILL LEAD THE WAY FOR THIS COMING YEAR. BUT AS I MENTIONED BEFORE, THERE'S LOTS OF OTHER THINGS THAT WE'RE DOING AND YOU'LL SEE THOSE IMPROVEMENTS GOING FORWARD INDIVIDUALLY AS WE COME FORWARD TO YOU. THESE ARE SOME OF THE RENDERINGS TO THE RIGHT OF THE ALL WHEEL SKATE PARK. AGAIN, VERY EXCITING TO SEE A PREMIER FACILITY COMING TO KYLE LIKE THIS. SO THIS WILL BE COMING IN THE NEAR FUTURE. I HAVE ALL OF THE POSITIONS AND SOME OF THE EQUIPMENT LISTED FOR PARKS AND RECREATION HERE. THIS EXCUSE ME AND LIBRARIES. THAT'S $573,000 OF INVESTMENT THIS COMING YEAR IN THESE AREAS. ALL RIGHT. NEXT UP IS THRIVING AND PROSPEROUS ECONOMY. LOTS BEEN HAPPENING HERE. THE CITY HAS GROWN TREMENDOUSLY OVER THE LAST THREE YEARS. WE PULLED THIS STATISTIC. I THOUGHT IT WAS RATHER STAGGERING $540 MILLION OF PRIVATE INVESTMENT JUST IN THE LAST THREE YEARS, HALF $1 BILLION THAT'S COME TO OUR COMMUNITY AND ABOUT 3000 NEW JOBS. SO WE'RE WORKING VERY CLOSELY WITH THE DEVELOPMENT COMMUNITY TO MAKE SURE WE BRING GREAT PROJECTS TO KYLE. THERE'S MANY MORE COMING, BUT IT'S REALLY STAGGERING TO SEE THAT KIND OF THAT KIND OF GROWTH. I KNOW WE ALL SEE IT AND FEEL IT, YOU KNOW, JUST BEING IN THE CITY, BUT THOSE NUMBERS REALLY BRING IT TO LIFE. TAX INCREMENT REINVESTMENT ZONES, THE TOURIST DISTRICTS. WE DID CREATE ONE NEW TOURIST DISTRICT, TOURIST NUMBER SIX, WHICH IS FOR DOWNTOWN AND TO THE AREA JUST EAST OF I-35. AND WE'VE ALSO EXPANDED TOURS.

NUMBER FOUR OVER ON THE EAST SIDE. THAT WILL BE A PARTNERSHIP WITH THE COUNTY. BOTH OF THESE ARE PARTNERSHIPS WITH THE COUNTY TO PROVIDE FUNDING AND TOURS. NUMBER FOUR ACTUALLY PROVIDES THE FUNDING NEEDED TO BUILD GO FORTH ROAD FROM THE ALLIANCE FACILITY MERITAGE FACILITY ALL THE WAY UP INTO THAT 150 AREA. SO WE'RE REALLY EXCITED TO HAVE THAT PROJECT AND THAT FUNDING MECHANISM IN PLACE. WE'VE HAD ANOTHER NUMBER OF MAJOR MILESTONE PROJECTS IN 24 OR 25 SPROUTS AND THE RETAIL SHOPS IN THAT AREA. THAT GROUNDBREAKING WAS HELD BACK IN OCTOBER. WE'RE EXPECTING THAT TO OPEN IN THE NEXT COUPLE OF MONTHS. THAT'S REALLY COMING ALONG. THE ROADS IN THAT AREA ARE ALMOST COMPLETE NITRO SWIM. WE HAD THE RIBBON CUTTING FOR THAT EARLIER THIS YEAR AS WELL, AND THE PLUM CREEK TECHNOLOGY PARK. THAT GROUNDBREAKING WAS HELD AT THE END OF MAY. WE ALSO HAVE A NUMBER OF PUBLIC PRIVATE PARTNERSHIP DEVELOPMENTS THAT WE'RE LOOKING AT. WE HAVE THE RESTAURANT CONCEPT AT HEROES MEMORIAL PARK THAT WE'VE GONE OUT FOR RFP ON THE HOTEL WITHIN THE LAKE PARK DISTRICT, AND AN OFFICE DEVELOPMENT WITH BRICK AND MORTAR. ALL OF THOSE ARE GOING THROUGH THE PROCESS AND WILL BE COMING BACK TO YOU TO SEE IF THERE'S A SELECTION THAT YOU'D LIKE TO MOVE FORWARD WITH. WE'VE ALSO MOVED FORWARD ON THE

[00:45:03]

AND THAT CONTRACT WILL BE COMING BACK IN THE NEXT 60 DAYS OR SO. AND SOME MORE PROJECTS THERE JUST TO TALK ABOUT SOME OF THE THINGS THAT WE'RE DOING. THE UNIFIED DEVELOPMENT CODE, I MENTIONED THAT EARLIER, THAT IS UNDERWAY. IT'S A IT'S A REALLY IMPORTANT PROJECT TO MAKE SURE THAT WE UPDATE OUR CODE, MODERNIZE, MODERNIZE THE CODE, MAKE SURE IT'S PROVIDING THE TYPE OF STANDARDS THAT WE WANT ACROSS THE COMMUNITY. WE ALSO ARE PROPOSING AN INCREASE IN THE HOME REPAIR PROGRAM. WE TALKED ABOUT THIS JUST THE OTHER NIGHT, THURSDAY. IT'S ALMOST LIKE WHAT DAY? WHAT DAY IS TODAY? I KNOW WE'VE HAD A LOT OF MEETINGS, BUT THURSDAY WE TALKED ABOUT THAT.

THIS WILL PROPOSE A $25,000 INCREASE. I KNOW THE COUNCIL GAVE DIRECTION TO GO AHEAD AND INCREASE THAT FOR THE CURRENT YEAR. THIS WILL BE THE ADDITIONAL $25,000 FOR NEXT YEAR. AND YOU CAN SEE SOME OF THE BEFORE AND AFTER PHOTOS, SOME OF THE PROJECTS THAT WE'VE DONE. WE'RE ALSO DOING A HOUSING STUDY AS WELL WITH A COMPANY CALLED HOUSING WORKS. IN THE NEXT COUPLE OF MONTHS, WE'LL BE BRINGING THAT BACK TO YOU TO TRY TO GET A GOOD INVENTORY OF WHAT IS OUR HOUSING IN THE CITY, WHAT ARE THE GAPS THAT WE HAVE, WHAT ARE THE AFFORDABILITY GAPS THAT WE HAVE ACROSS THE COMMUNITY, AND WHERE DO WE REALLY WANT TO BE GOING WITH THAT? AND WHAT KINDS OF PROGRAMS DO WE NEED TO TIE TO THAT? AND WE ALSO WANT TO WORK WITH THE NEWLY APPOINTED HOUSING AUTHORITY BOARD TO HAVE A PARTNERSHIP THAT REALLY HELPS US ACHIEVE OUR HOUSING GOALS MOVING FORWARD. SO THAT WILL BE COMING TO YOU IN THE NEAR FUTURE AS WELL. DOWNTOWN REDEVELOPMENT.

THIS IS ANOTHER AREA THAT WE WANTED TO TALK ABOUT ON THE ON THE CHART ON THE RIGHT, YOU CAN SEE THE DOWNTOWN AREA, ALL OF THE SHADED AREAS IN BLUE ARE PROPERTIES THAT THE CITY NOW OWNS. WE'VE WE'VE ACQUIRED THESE OVER THE LAST COUPLE 2 OR 3 YEARS. AND YOU CAN SEE WE NOW HAVE SOME SIGNIFICANT PROPERTIES IN THE AREA FOR US TO TRY TO REDEVELOP. SO IT'S REALLY IMPORTANT FOR US TO START THINKING ABOUT, WELL, WHAT SHOULD THAT REDEVELOPMENT LOOK LIKE. AND WE'RE GOING TO BE WORKING WITH THE COUNCIL OVER THE COMING MONTHS TO SOLIDIFY THAT PLAN. AS WE TALKED ABOUT DURING THE VISIONING WORKSHOP BACK IN MARCH, ONE OF THE THINGS THAT WE REALLY WANTED TO FOCUS ON WAS THE POCKET PARK AREA IN FRONT OF CITY HALL ON FRONT STREET, IN BETWEEN, RIGHT HERE IN THIS AREA, ON THIS STREET, TO LOOK AT POTENTIALLY CLOSING THAT STREET, CREATING A PLAZA AND PARK LIKE ENVIRONMENT THERE THAT COULD BE USED FOR LOTS OF DIFFERENT ACTIVITIES FOR THE CITY. WE'RE ALSO WORKING ON THE LANDSCAPING PACKAGE ON CENTER STREET FROM DOWNTOWN ALL THE WAY BACK TO 35. THE TILE THOSE TOGETHER, COLEMAN AND ASSOCIATES, HAS BEEN ENGAGED TO DO THAT WORK. AND WE'LL BE COMING BACK TO YOU TO SHOW YOU THOSE CONCEPTS, GET YOUR FEEDBACK, AND MAKE SURE THESE ARE HEADED IN THE RIGHT DIRECTION. LET'S MAKE SURE WE'RE CHECKING IN WITH HISTORICAL COMMISSION AS WELL FOR THE COUNTY AND THE TRAIN DEPOT, MAKING SURE THEY'RE IN THE LOOP. YES, SIR. WE'LL MAKE SURE WE DO THAT. THAT'S THOSE ARE GREAT POINTS. AND, YOU KNOW, ONE OF THE THINGS THAT I THINK IS AN OPPORTUNITY FOR THE TRAIN DEPOT IN PARTICULAR, IS TO TRY TO ACTIVATE THAT AREA MORE WITH A PLAZA AND A PARK LIKE FEATURE OUT HERE. SO RIGHT NOW IT'S CUT OFF FROM THE REST OF THIS BLOCK.

SO WE'RE HOPING WE CAN DO THAT. I THINK THAT WOULD BE A GREAT IMPROVEMENT FOR ESPECIALLY MAYBE GENERATE MORE FAMILIES THERE. YES, SIR. GREAT. IN ADDITION TO THAT, AS I MENTIONED TO YOU, THE

[00:50:04]

THAT'S THAT CENTER WILL NOW HAVE A LOT MORE OPPORTUNITY. SO WE'RE LOOKING AT WHAT SHOULD WHAT SHOULD BE THE VISION FOR THAT FACILITY. WHAT'S THE POSSIBILITIES FOR THAT FACILITY? WE'VE ENGAGED A FIRM TO HELP US LOOK AT THAT AND TO LOOK AT SOME MIRACLE HEARTS AND IMPROVEMENTS AND POTENTIAL RESTROOM IMPROVEMENTS. WE'LL BRING ALL THAT BACK TO YOU IN LATE 25, AND HAVE SOME GOOD DISCUSSIONS ABOUT HOW ALL OF THESE THINGS WORK TOGETHER LONG TERM. WE'RE LOOKING AT DOWNTOWN PARKING SOLUTIONS, A POTENTIAL PARKING GARAGE THAT'S A FUNDED ITEM AS PART OF THE TOURS. NUMBER SIX IS ONE OF THE ELEMENTS THAT WE INCLUDED. WE REALLY WANT TO HAVE A PARTNERSHIP WITH DEVELOPERS IN THE AREA AND ALL OF OUR STAKEHOLDERS IN DOWNTOWN TO CREATE A VIBRANT DOWNTOWN TO REDEVELOP THESE AREAS. $1.5 MILLION IN FUNDING IS PLANNED FOR THESE DOWNTOWN INVESTMENTS ANNUALLY GOING FORWARD, AND EACH OF THOSE ELEMENTS WILL COME FORWARD TO YOU SO YOU CAN PROVIDE LOTS OF DETAILED DIRECTION TO US. BUT YOU DO HAVE FUNDING IN PLACE TO START DEVELOPING THE DOWNTOWN PLAN. ALL RIGHT. THAT'S COUNCIL MEMBER ZUNIGA, DID YOU HAVE A QUESTION? WHAT IS THE BUDGET ON THE PROPERTY ACQUISITIONS, I GUESS IS THIS IN ADDITION TO PROPERTY ACQUISITION BUDGET, IT IS IN A DEEP DIVE. I JUST WANTED TO SEE, LIKE, HOW MUCH WE HAVE TO ACQUIRE PROPERTIES. SO WE STILL HAVE $2 MILLION. AND I'VE LOST PERVEZ. HE'S BACK OVER THERE. HE'S HIDING BACK. I'VE GOT ALL THE OTHER STAFF HERE, BUT IT'S $2 MILLION IS INCLUDED. I BELIEVE IN PROPERTY ACQUISITION MOVING FORWARD. WHAT IS THE NEW WHAT IS WHAT IS GOING FOR THE NEXT, I GUESS THE NEW AMOUNT THAT WE HAVE. I THINK WE HAD 20 AND WE WENT THROUGH MOST OF THE 20 THIS LAST YEAR WITH MANY, MANY PURCHASES. SO WHAT WHAT BUDGET DO WE HAVE FOR THE NEXT YEAR? YES. SO GOING FORWARD WE HAVE $2 MILLION A YEAR OVER THE FIVE YEAR PERIOD. IS $10 MILLION ABOUT 10 MILLION? YES, SIR. OKAY. THANK YOU. YOU BET. SO THAT CONCLUDES MY PORTION OF THE PRESENTATION. MAYOR PRO TEM, THIS THIS MIGHT BE A GOOD POINT.

IF THERE ARE ANY QUESTIONS ON THAT, WE COULD TAKE A MOMENT TO ANSWER THOSE QUESTIONS. IF NOT, WE'LL PERVEZ WILL JUMP INTO THE FUND FINANCIALS AND WALK YOU THROUGH THE REST OF THESE SLIDES. SO WE'VE GONE THROUGH IT SEEMS LIKE ABOUT 32 SLIDES WORTH OF THE BUDGET RECOMMENDATIONS IF WE WANT TO, LIKE BRIAN SAID, JUMP IN WITH QUESTIONS. BUT JUST REMEMBER WE'RE NOT TAKING ANY VOTES. WE'RE JUST TRYING TO GIVE SOME FEEDBACK ON THOUGHTS SO THAT THEY CAN REFINE THE PROCESS FOR WHEN IT COMES BACK TO US THE NEXT TIME. IF I COULD, JUST TO ECHO THAT A LITTLE BIT TO THE COUNCIL, IT'S IMPORTANT TO HAVE GOOD DIALOG ON ALL OF THESE THINGS AS WE'RE MOVING FORWARD.

WHEN WE GET TO SEPTEMBER 16TH, FOR YOUR SECOND AND FINAL VOTE ON THE BUDGET, THERE SHOULD BE NO SURPRISES FOR ANY OF YOU. FOR STAFF, WE WANT TO MAKE SURE WE FULLY VET ANY PROPOSAL OR ANY DISCUSSION THAT YOU HAVE. IF THERE'S SOMETHING THAT YOU WANT US TO LOOK AT, WE'D LOVE TO WORK ON GETTING THAT INFORMATION TOGETHER FOR YOU. SO AS A GROUP, YOU KIND OF KNOW WHAT THE OPTIONS ARE AVAILABLE. SO TO THE EXTENT THAT YOU HAVE QUESTIONS OR THINGS THAT YOU CAN BRING UP OVER THE TODAY OR THE NEXT COUPLE OF MEETINGS, IT'D BE VERY HELPFUL AS WE'RE TRYING TO FINALIZE THE NUMBERS. BRIAN, JUST A HEADS UP. WE TALKED IN THE BACK AND THE GROUP KIND OF WANTS TO TAKE A BREAK AROUND TEN. SO JUST KEEP THAT IN MIND. SO JUST LET US KNOW. IT DOESN'T HAVE TO BE AT TEN. JUST JUST SO ALL OF THIS CAN BE FRAMED PROPERLY. YOU GOT IT. GOOD QUESTION. YEAH I GOT A COMMENT I WANT TO MAKE. I REALLY APPRECIATE HOW YOU'VE CONNECTED ALL OF OUR WORK THAT WE'VE DONE SO FAR THIS YEAR AND IN THE COMING WORK TO THE BEGINNING, WORK AT THE WORKSHOP COUNCIL WORKSHOP, IT'S VERY CLEAR THAT THE GOALS WERE SET FROM THAT WORKSHOP AND HAVE CONTINUED TO BE ADVANCED. AND IT'S VERY A VERY COHESIVE PLAN. SO VERY UNDERSTANDABLE. THANK YOU. I WAS GOING TO SAY THE SAME THING, BRIAN. EVERYTHING I WAS LOOKING FOR, I CAN FIND IN THESE SLIDES, LIKE RIGHT AWAY IT JUMPS. I DON'T HAVE TO SEARCH BACK AND FORTH INTO THE BOOKS. SO THANK YOU FOR HIGHLIGHTING, LIKE ALL THE BIG POINTS, THE POINTS YOU WANT US TO FOCUS ON AND HOW IT'S ALL CONNECTED INTO THE OUR NEXT BUDGET. THANK YOU. THANK YOU ALL WORK. WE ALL WORK VERY HARD TO DO THAT. I APPRECIATE THAT FEEDBACK. HOPEFULLY IT'S EASY TO FOLLOW. THANK YOU. HE WILL BE COMING. HE WILL BE COMING BACK I HOPE. HE LIKES TO MAKE A GRAND ENTRANCE. NO, I WANT TO MAKE SURE MY PHONE WAS OFF. SO MAYOR PRO TEM COUNCIL

[00:55:06]

IF YOU'VE BEEN ON THE CITY COUNCIL, AT LEAST IN THE PAST TEN YEARS OR SO, THERE WERE ONLY TWO OF US DOING THE CITY BUDGET. IT WAS ANDY AND I. ANDY HAS BEEN A GREAT PART OF DEVELOPING THE BUDGET MODEL THAT WE USE TODAY FOR THE CITY'S BUDGET. NEXT UP WE HAVE BETTY KORNBLUM. SHE'S OUR SENIOR FINANCIAL ANALYST, BY THE WAY. ANDY IS OUR CITY COMPTROLLER. CITY MANAGER RECENTLY PROMOTED HIM, BUT HE'S OUR SENIOR FINANCIAL ANALYST. YOU WILL YOU MAY NOT KNOW HER OR RECOGNIZE HER FACE, BUT YOU WILL RECOGNIZE HER NAME EACH MONTH. SHE SENDS YOU YOUR DISTRICT BUDGET STATUS REPORT. SO THAT'S THE BETTY THAT SENDS THOSE REPORTS TO YOU ON A TIMELY BASIS. BETTY HAS BEEN A GREAT PART OF THE CIP BUDGET DEVELOPMENT THIS YEAR. THEN WE HAVE THREE NEW EMPLOYEES THAT JOINED OUR TEAM THIS YEAR MATEO GARCIA, HE'S OUR ACCOUNTING MANAGER. HE HAS BEEN WITH THE CITY ABOUT THREE MONTHS. HE COMES TO US FROM THE CITY OF UNIVERSAL CITY, JUST DOWN THE HIGHWAY TOWARDS SAN ANTONIO. DILLON SAUNDERSON, HE'S OUR BUDGET MANAGER. HE'S BEEN WITH US THREE MONTHS. TWO, HE COMES TO US FROM THE CITY OF PLANO, TEXAS. AND THEN, OF COURSE, WE HAVE HOLLY HOLT TORRES. SHE'S OUR ASSISTANT DIRECTOR OF FINANCE. SHE'S BEEN HERE ABOUT TWO MONTHS, AND SHE JOINS US FROM THE BIG CITY OF DALLAS. SO ON BEHALF OF THE CITY MANAGER, OUR TWO ASSISTANT CITY MANAGERS AND ALL THE DEPARTMENT STAFF THAT IS REPRESENTED HERE THIS MORNING, ANDY. BETTY, MATEO, DILLON AND HOLLY, PLEASE ACCEPT A TEXAS SIZED THANK YOU FROM ALL OF US. SO THANK YOU TO EACH ONE OF YOU FOR YOUR CONTRIBUTIONS.

SO WITH THAT, I'M GOING TO START THE BUDGET PRESENTATION. WE'RE GOING TO LEAVE. OH DON'T LEAVE.

OH I JUST WANT TO SAY SOMETHING REAL QUICK. PEREZ. WHEN YOU WANT TO LOOK AT THE HARD WORK THEY PUT IN, LOOK AT THIS RIGHT HERE. YES, SIR. IT TAKES IT TAKES A LOT TO PUT THAT DOCUMENT TOGETHER. THANK YOU VERY MUCH. APPRECIATE ALL YOUR HARD WORK. WE REALLY APPRECIATE IT. I KNOW IT'S MANY HOURS AND MANY DAYS, MANY MONTHS PUTTING IT TOGETHER. THANK YOU PEREZ, FOR YOUR TEAM.

[01:00:04]

AND THE GREEN ARE SOME OF THE OTHER FUNDS THAT WE WILL NOT SPECIFICALLY COVER, BUT THEY'RE PART OF THE BUDGET. 52% OF OUR NEXT YEAR'S BUDGET IS GOING TO BE ACCOUNTED FOR AND REPORTED AND BUDGETED WITHIN THE GOVERNMENTAL TYPE FUNDS, 48% IS GOING TO BE ACCOUNTED FOR AND BUDGETED UNDER THE PROPRIETARY TYPE FUNDS. I'VE ONLY SHOWN YOU ABOUT 26. JUST TO GIVE YOU A SAMPLE OF WHAT IT LOOKS LIKE, WE HAVE RIGHT NOW, WE HAVE ABOUT 56 FUNDS GOING NEXT YEAR. IT'LL BE CLOSE TO 60 FUNDS, SEPARATE FUNDS. AND THAT'S WHY YOUNG PEOPLE ARE NOT GETTING INTO THE

[01:05:11]

BUT I CAN WHEN WE GET INTO THE TAX SECTION OF OUR DISCUSSION, I'LL GIVE YOU A BROAD BRUSH OF WHAT THESE CERTIFIED TAX LOOKS LIKE THAT WE RECEIVED JUST THURSDAY AFTERNOON. WE HAVEN'T HAD TOO MUCH TIME TO DELVE INTO IT. RATE INCREASES FOR WATER AND WASTEWATER SERVICE IN 26 WILL GO OVER THOSE. IT VARIES BY CUSTOMER CLASS, WHETHER INSIDE OR OUTSIDE CITY. THE RECOMMENDED BUDGET INCLUDES CHANGE IN STORM. DRAINAGE FEES WILL GO OVER THAT BASED ON THE CITY'S CONTRACT WITH TEXAS DISPOSAL SYSTEM FOR THE COLLECTION OF SOLID WASTE SERVICES, OR PROVIDING SOLID WASTE SERVICES. THERE IS A 2.5% RATE INCREASE FOR NEXT YEAR. THE CITY MANAGER ALREADY COVERED THE IMPACT FEES, WHICH IS BEING FINALIZED AND WILL BE PRESENTED TO YOU FOR YOUR APPROVAL SHORTLY. SO LET'S TALK ABOUT REAL QUICK THE 24 NEW POSITIONS. WHERE ARE THEY? WHICH DEPARTMENTS ARE BEING RECOMMENDED TO RECEIVE THOSE 24? A TOTAL OF 51 NEW POSITIONS WAS WERE REQUESTED BY VARIOUS CITY DEPARTMENTS. THE CITY MANAGER WENT THROUGH EACH DEPARTMENT'S PRIORITIES. OF ALL THEIR SUPPLEMENTAL BUDGET REQUESTS, AND THESE ARE THE ONES THAT MADE THE FINAL LIST FOR RECOMMENDATION TO CITY COUNCIL. THE OTHER THING I WANT TO MENTION THAT IF YOU LOOK AT THE FOURTH COLUMN, WHICH IS THE FULL YEAR AMOUNT, HAS AN ASTERISK ABOVE IT, WE ARE TRYING FOR TRANSPARENCY PURPOSES. WE'RE SHOWING YOU FULL YEAR COST OF THESE POSITIONS. HOWEVER, IN THE BUDGET IN THE CITY MANAGER'S RECOMMENDED BUDGET, WE'RE

[01:10:03]

LIBRARIAN FOR PARKS AND REC. A TOTAL OF TWO POSITIONS A RECREATION SERVICES SUPERVISOR AND A SPECIAL EVENTS COORDINATOR FOR POLICE DEPARTMENT. A TOTAL OF THREE POSITIONS EMERGENCY PLANNER, FLEET TECHNICIAN, AND A K-9 OFFICER FOR. OUR TRANSPORTATION AND PUBLIC WORKS DEPARTMENT. A TOTAL OF SEVEN POSITIONS ARE BEING RECOMMENDED BY THE CITY MANAGER, TWO PROJECT MANAGERS, TWO PROJECT COORDINATORS, ONE ENGINEER, ONE CAD AND DESIGN ENGINEER, TECH ONE FACILITIES MAINTENANCE SUPERVISOR. AND FINALLY FOR THE WATER UTILITIES DEPARTMENT. ALSO A TOTAL OF SEVEN POSITIONS WASTEWATER TREATMENT PLANT OPERATOR, LEAD WATER PRODUCTION OPERATOR, BACKFLOW TECHNICIAN. ASSISTANT, WASTEWATER TREATMENT PLANT OPERATOR, AND. A DIVISION MANAGER FOR WATER QUALITY INSTRUMENT CONTROL TECHNICIAN AND A WATER WASTEWATER LAB TECHNICIAN. THESE 24 POSITIONS ON A FULL YEAR BASIS, WITH EVERYTHING INCLUDED THEIR BASE WAGES, THEIR PAYROLL TAXES, THEIR HEALTH INSURANCE, THEIR RETIREMENT. FULLY LOADED IS $2.8 MILLION. HOWEVER, AS I MENTIONED EARLIER, THE BUDGET ONLY INCLUDES FUNDING FOR SIX MONTHS.

SO THAT WAS OVERALL CITIES FOR ALL FUNDS. NOW WE'RE GOING TO GET INTO THE FOUR MAJOR OPERATING FUNDS. OUR FOUR MAJOR OPERATING FUNDS ARE GENERAL FUND, WATER UTILITY FUND, WASTEWATER UTILITY FUND, AND STORM DRAINAGE FUND. SO I'LL WALK YOU THROUGH WHAT'S IN THEIR TOTAL BUDGET. I WILL ALSO COVER THE RATE STUDIES AND THE RATE RESULTS. WHAT IS BEING RECOMMENDED FOR NEXT YEAR. BUT BEFORE WE GET INTO IT, WE START OUR BUDGET PROCESS WITH A FIVE YEAR FINANCIAL FORECAST. WE'VE ALWAYS DONE IT. WE CONTINUE TO DO IT. AND HERE ARE THE REASONS WHY WE DO FINANCIAL FORECASTS. FINANCIAL FORECAST IS AN ESSENTIAL PART OF THE ANNUAL BUDGET PROCESS TO HELP WITH BUDGETARY DECISION MAKING, BECAUSE WE WANT TO KNOW WHATEVER WE ARE GOING TO DO IN YEAR NUMBER ONE, WHICH IS NEXT YEAR. HOW WILL THAT IMPACT US IN YEARS TWO, THREE, FOUR AND FIVE? THE PURPOSE OF THE FINANCIAL FORECAST IS TO EVALUATE CURRENT AND FUTURE FISCAL CONDITIONS, TO HELP GUIDE POLICY AND MANAGEMENT DECISIONS. A FINANCIAL FORECAST IS A FISCAL MANAGEMENT TOOL THAT PRESENTS ESTIMATED INFORMATION BASED ON PAST. PAST IS OUR TWO ACTUAL YEARS, HOW WE'RE DOING THIS YEAR? OUR CURRENT AND THEN PROJECTED FINANCIAL CONDITIONS BASED ON A SET OF ASSUMPTIONS THAT WE HAVE ASSUMED GOING FORWARD. SO FOR GENERAL FUND, THIS MAY SOUND FAMILIAR TO YOU AND LOOK FAMILIAR BECAUSE I WAS BEFORE YOU ON MAY 31ST AND WE TALKED ABOUT THE PRELIMINARY FINANCIAL FORECAST FOR THE GENERAL FUND AT THAT TIME. AND I ALSO SAID THAT WE WILL BE FINE TUNING THIS FORECAST AS THE CITY MANAGER'S BUDGET IS FINALIZED, BECAUSE THAT SETS THE CORNERSTONE FOR YEAR NUMBER ONE AND EVERYTHING FLOWS FROM IT. SO

[01:15:03]

THESE ARE MUNICIPAL COURT REVENUES, LIBRARY REVENUES, INTEREST INCOME, THOSE TYPES OF THINGS. IT'S PRETTY SAFE TO ASSUME IT'LL BE AROUND 5%. THE GENERAL FUND TRANSFER FROM WATER AND WASTEWATER UTILITIES. I WANT TO TAKE A COUPLE OF MINUTES TO EXPLAIN THIS TO YOU. WE'RE DOING SOMETHING DIFFERENT NEXT YEAR. AND WE COVERED THIS IN MY MAY 31ST PRESENTATION AS WELL. SO IN THE PAST, INCLUDING THE CURRENT YEAR, THERE WAS A FLAT $650,000 TRANSFER FROM THE WATER UTILITY TO THE GENERAL FUND AND ANOTHER 650 FROM WASTEWATER UTILITY TO THE GENERAL FUND, BECAUSE HAD THEY BEEN A PRIVATE UTILITY, THEY WOULD HAVE PAID US PROPERTY TAX, FRANCHISE TAX, THOSE TYPES OF. SO IT'S IN LIEU OF TAXES THAT THAT GENERAL FUND TRANSFER. 650 EACH IN THE CURRENT YEAR. SO BOTH OF THEM TOOK PUT TOGETHER. THEY PAY $1.3 MILLION A YEAR TO THE GENERAL FUND. WE'RE CHANGING THAT STARTING NEXT FISCAL YEAR TO IT TO BE MORE ALIGNED WITH INDUSTRY PRACTICE, WHICH IS A PERCENTAGE OF GROSS REVENUE. SO NEXT YEAR, STARTING NEXT YEAR, THE GENERAL FUND TRANSFER WILL BE BASED ON 8% OF GROSS REVENUE OF WATER AND WASTEWATER. AND IT STAYS THE SAME IN THE FIVE YEAR PERIOD. SO IF YOU'RE WONDERING WHAT THAT DELTA IS, THE CURRENT METHODOLOGY BRINGS IN ABOUT 1.3 MILLION BETWEEN THE TWO. THE NEW METHODOLOGY WILL BRING 3.3 MILLION TO THE GENERAL FUND. SO THAT'S AN INCREASE OF ABOUT $2 MILLION EACH YEAR, ROUGHLY. NOW MOVING ON TO THE EXPENDITURE EXPENDITURE SIDE OF ASSUMPTIONS THAT WE USED IN OUR FIVE YEAR FORECAST OPERATIONS AND MAINTENANCE, WE'RE KEEPING IT STEADY AT 5%. MEET AND CONFER. AS CITY MANAGER MENTIONED IN THE FIRST YEAR IS $1.2 MILLION. AND THEN WE'RE GROWING THAT AT 3.5% EACH YEAR. HEALTH CARE COSTS,

[01:20:01]

ESPECIALLY. IT'S AT 25.62% FOR THE END OF THIS YEAR. SO HOW ARE WE GOING TO. WE'RE GOING TO USE GENERAL OBLIGATION BONDS FOR THE FUNDING FOR THE CIP. SO IN THE NEXT TWO YEARS. YES. SO I'LL

[01:25:04]

AND WHEN WE GET INTO PROPERTY TAX I'LL TALK ABOUT WHY IS THAT. WHILE THE SALES TAX IS GOOD, IT'S A GOOD SOURCE OF REVENUE. ONE THING TO KEEP IN MIND SALES TAX REVENUE IS A VERY VOLATILE SOURCE OF REVENUE. YES, MA'AM. QUICK QUESTION ON THE PROPERTY TAX REVENUE. IS GENERAL FUND THE ONLY PLACE THAT SHOWS UP OR DOES IT SHOW UP IN ANY OF THE OTHER FUNDS SO IT SHOWS UP IN TWO PLACES? OKAY. THANK YOU. THE MAINTENANCE AND OPERATION PORTION OF THE PROPERTY TAX REVENUE COMES INTO GENERAL FUND, THE INS OR THE DEBT PORTION OF THE TAX REVENUE IS SEPARATED AND ACCOUNTED FOR IN A DEBT SERVICE FUND. SO IT'S NOT COMMINGLED WITH THE OPERATIONS OF THE CITY.

SO NUMBER ONE IS SALES TAX IS 28%, $22.2 MILLION PROJECTED FOR NEXT YEAR. NECK AND NECK WITH THAT IS PROPERTY TAX REVENUE AT 21.7 MILLION, OR 28%. THE DIFFERENCE BETWEEN SALES TAX AND PROJECTED PROPERTY TAX IS ROUGHLY ABOUT $500,000. THE NUMBER THREE SOURCE OF REVENUE NEXT YEAR FOR GENERAL FUND IS FROM TRANSFERS IN. THESE ARE MULTIPLE SOURCES. WE JUST TALKED ABOUT THE GENERAL FUND TRANSFER FROM THE UTILITIES. WE'RE ALSO DOING INDIRECT COST ALLOCATION.

THAT WILL BE THE GENERAL FUND WILL BE REIMBURSED BY OTHER FUNDS. WATER FUND, WASTEWATER FUND, CIP FUNDS FOR THE SUPPORT SERVICES IT PROVIDES TO THOSE MAJOR OPERATING FUNDS. AND BY SUPPORT SERVICES I MEAN CITY MANAGER'S OFFICE COSTS, CITY ATTORNEY'S COSTS, HUMAN

[01:30:01]

SO I WANT TO MAKE SURE THAT I GIVE YOU THE INFORMATION THAT IS AT LEAST MINIMUM REQUIRED BY CITY CHARTER. SO THE TEMPLATE AS IT IS SET UP, IF YOU LOOK AT THE TOP, WE ARE PROVIDING YOU TWO ACTUAL FISCAL YEAR REVENUE AND EXPENDITURE INFORMATION. MOVING TO THE RIGHT, WE HAVE THE APPROVED BUDGET THEN CURRENT YEAR ESTIMATE. HOW ARE WE GOING TO FINISH WHAT IT LOOKS LIKE OUR BEST ESTIMATE AT THIS POINT? THEN WE HAVE THE CITY MANAGER'S PROPOSED A RECOMMENDED BUDGET

[01:35:03]

THE ESTIMATED ENDING FUND BALANCE, WHICH IS THE DIFFERENCE BETWEEN BEGINNING BALANCE REVENUES MINUS THE EXPENDITURES AND TRANSFERS OUT. SO WHAT IS OUR NET BALANCE AT THE END OF THE FISCAL YEAR FOR THE FUND BALANCE IT IS $20.3 MILLION. IF WE FOLLOW THE 25% MINIMUM REQUIRED BALANCE, IT'S CALCULATED AT 18.8 MILLION, AS SHOWN ON LINE 17. UNDER THE CITY MANAGER'S PROPOSED BUDGET COLUMN. THAT IS $1.5 MILLION, ROUGHLY ABOVE THE MINIMUM. SO IT GIVES US A GOOD CUSHION FOR ANY CHANGES THAT MIGHT HAPPEN DURING THE FISCAL YEAR, OR IF WE SEE A SLIGHT REDUCTION IN OUR FORECAST ON REVENUE SIDE. THIS DOES THAT MINIMUM BALANCE. IS THAT DICTATED JUST BY CITY CHARTER, BUT ALSO IS THAT DICTATED BY STATE REQUIREMENTS? IT'S NOT IN THE STATE. IT'S MORE SPECIFIC TO OUR CITY. THANK YOU. IT'S ALSO A RATING AGENCY FROM THE CREDIT MARKETS. WHEN THE RATING AGENCIES ARE LOOKING AT THAT, THEY THEY DO LIKE TO SEE A HEALTHY FUND BALANCE TO. SO LET'S TALK ABOUT PROPERTY TAX RATES. AND I'LL SHARE WITH YOU SOME SOME VERY LIMITED STATISTICS. WE DON'T HAVE ALL OF IT HERE TOGETHER FOR YOU, BUT WE'LL BEGIN WITH THE CURRENT PROPERTY TAX TAXES IN KYLE. SO IF YOU'RE A HOMEOWNER IN KYLE THESE ARE THE TAXING JURISDICTIONS THAT SHOW UP ON YOUR PROPERTY TAX BILL. THE THREE LARGEST SLICES OF THE PIE BELONG TO NUMBER ONE HAYS C-I-S-D IS AT 51%. NUMBER TWO, CITY OF KYLE. OUR CURRENT TAX RATE IS 46.93. AND NUMBER THREE IS THE COUNTY, HAYS COUNTY. HAYS COUNTY ACTUALLY HAS TWO SLICES. SO YOU HAVE TO KIND OF ADD THE TWO. YOU HAVE THE HAYS COUNTY GENERAL FUND TAX AND THEN HAYS COUNTY UP TOP IS HAYS COUNTY ROAD TAX, WHICH IS ABOUT 2%. AND THEN YOU'LL SEE AUSTIN COMMUNITY COLLEGE. ESD NINE, PLUM CREEK CONSERVATION DISTRICT, PLUM CREEK GROUND WATER DISTRICT. THOSE ARE THE OTHER ACC AUSTIN COMMUNITY COLLEGE ARE THE OTHER JURISDICTIONS. SO IF YOU ADD EVERYBODY, EVERY ENTITY'S TAX RATE FOR A CITY OF KYLE, IT CURRENTLY ADDS UP TO 2.25544 PER $100 OF ASSESSED VALUATION. OKAY, SO THIS IS OUR TAX RATE HISTORY CHART OR GRAPH THAT WE HAVE SHARED WITH YOU OVER TIME. IT STARTS IN 1990. OUR HIGHEST TAX RATE SO FAR WAS IN 1992. A TOTAL OF 69.2 $0.06. OUR LOWEST TAX RATE OVER THIS SPECTRUM WAS IN 2008, RIGHT IN THE CENTER AT ABOUT 16.27%. HEY, PERVEZ, DO YOU HAVE ANY CONTEXT AS TO WHY THE TAX RATE WAS SO HIGH IN 92? LIKE WHAT LED TO THAT? OUR IT'S A COMBINATION OF FACTORS. ONE WAS OUR ASSESSED VALUATION WERE LOW IN THOSE DAYS. WE HAD DEBTS DEBT OBLIGATIONS TO PAY AT THE TIME. SO IT'S COMBINATION OF THOSE THINGS AND OPERATING REQUIREMENTS. BUT DO YOU HAVE ANY IDEA WHAT THOSE DEBT OBLIGATIONS WERE. WAS IT LIKE INFRASTRUCTURE. WAS IT LIKE WHAT WAS THE WHAT WAS THE REASON WHY THE TAX RATE WAS RAISED? I KNOW IT WAS A LONG TIME AGO, SO I DON'T EXPECT YOU NECESSARILY, BUT I'M JUST A LITTLE BIT CURIOUS GIVEN IT'S THE CLOSEST COMPARISON. WELL, ONE OF THE CLOSEST COMPARISONS TO WHERE WE'RE GOING TO BE AT IN THE UPCOMING YEAR. SO IF YOU LOOK AT THAT 1992 BAR, THE BLUE REPRESENTS MA'O AND THE GOLD

[01:40:08]

SMALL CITY, SMALL VALUATION, HIGHER TAX RATE TO RECOVER THE DOLLAR AMOUNT NEEDED. AND THEY PROBABLY DIDN'T HAVE AS MUCH WATER AND WASTEWATER REVENUES AT THAT TIME. WE DID NOT HAVE GENERAL FUND TRANSFER UNTIL 2011. I JUST, YOU KNOW, THE PAST COUPLE OF YEARS TALKING TO PEOPLE WHO'VE BEEN HERE A LOT LONGER THAN I HAVE, HAVE SHARED. YOU KNOW, JUST SOME STORIES ON HOW THE CITY FOR A LONG TIME WAS LOWERING TAX RATES INSTEAD OF INVESTING IN INFRASTRUCTURE AND, YOU KNOW, ROADS, WATER, WASTEWATER EXPANSION. SO I'M JUST, YOU KNOW, KIND OF CURIOUS TO SEE KIND OF WHAT THESE PEAKS AND VALLEYS ARE IN THE TAX RATE AND WHAT'S LED TO THEM WITHOUT DOING RESEARCH, I REALLY DON'T HAVE A DEFINITE ANSWER FOR YOU. OKAY. THANK YOU. I'M WONDERING IF THAT COULD HAVE BEEN A YEAR WHERE THE POPULATION JUST EXPLODED, WHERE WE GOT NEW SUBDIVISIONS IN. I'M NOT SURE WHEN. PLUM CREEK HAD INFRASTRUCTURE COMING AROUND.

YEAH, A LOT OF THE LOT OF THE NEIGHBORHOODS WERE BEING DEVELOPED. SO MAYBE THAT'S THEIR THINKING. I'M ASSUMING THE OTHER THING IS YOU HAD LESS PEOPLE DISTRIBUTE THAT DEBT ON, SO IT WAS HIGHER. BUT IF YOU LOOK AT ALL THE INFRASTRUCTURE IMPROVEMENTS WE'RE GOING TO DO, WE'RE STILL BELOW THAT LINE AND WE'RE GOING TO DO WAY MORE IN INFRASTRUCTURE THIS YEAR COMING YEARS. SO I DO WANT TO EMPHASIZE ON THIS GRAPH, THE LAST TWO BARS FOR 25 AND 26. SO IN 25 THE CURRENT YEAR, OUR TAX RATE IS SET AT 46.93. IF YOU RECALL, THE CITY'S FINANCIAL ADVISOR AND BOND COUNSEL AND STAFF PRESENTED OPTIONS FOR COUNCIL TO CONSIDER FOR TAX RATE MANAGEMENT OPTIONS.

THERE WERE THREE OPTIONS DISCUSSED AT THAT TIME, AND COUNCIL CHOSE THE SECOND OPTION, WHICH WAS TO BRING UP THE TAX RATE FOR THE GEO BONDS ALL THE WAY UP TO WHAT WAS SHARED WITH THE PUBLIC THAT WOULD COST, WHICH WAS 59.9 CENTS. AND THEN IN ADDITION TO WE HAD SOME OTHER PROJECTS THAT NEEDED DEBT FINANCING. SO COMBINATION OF THOSE TWO, THE FINANCIAL ADVISORS TAX RATE IMPACT ANALYSIS SHOWED THAT THE RAISE THE EXISTING RATES WOULD HAVE TO BE ESTIMATED. THESE ARE ALL ESTIMATES, MIND YOU, THESE ARE NOT ROCK SOLID NUMBERS. UNLESS COUNCIL TELLS THE CITY MANAGER THOU SHALL NOT INCREASE MORE THAN X. THESE ARE ALL FLOATING AT THIS TIME. SO ON APRIL 1ST, THE CITY'S FINANCIAL ADVISERS BEST ESTIMATE WAS 6171. WHAT NEEDS TO BE CLEARLY UNDERSTOOD AND I DON'T WANT THIS TO BE. I'LL SPEND AS MUCH TIME AS YOU NEED THEIR PROJECTIONS ONLY COVERED THE YELLOW PART OF THE BAR. IF YOU REMEMBER, PROPERTY TAX RATE HAS TWO COMPONENTS MAINTENANCE AND OPERATION. WHAT DOES THE CITY NEED OR IS ALLOWED BY STATE LAW WITHOUT A VOTER ELECTION? HOW MUCH IT CAN RAISE FOR TAXES? THE OTHER COMPONENT IS YOUR DEBT LEVY, OR HOW MUCH DO YOU NEED TO RECOVER FROM PROPERTY TAXES TO PAY YOUR ANNUAL DEBT SERVICE FOR THE NEXT COMING YEAR? SO THEY WERE SHOWING YOU THAT IF YOU WERE TO INCREASE THE PROPERTY TAX RATE FOR GENERAL FUND OR PROPERTY TAX FOR DEBT, FOR THE GEO COMPONENT, FOR THE ROAD BONDS, ALL THE WAY TO WHAT THE VOTERS WERE TOLD, 59.9 CENTS, THAT THE DEBT COMPONENT WOULD AT LEAST HAVE TO BE INCREASED TO 30. 32 EIGHT FROM CURRENTLY AT 1804, THEY DID NOT ASSUME THE NO PORTION MOVING. THEY IN THEIR ANALYSIS, THEY KEPT THE NO CONSTANT. SO WE NOW HAVE THE CERTIFIED TAX ROLLS. WE ARE GOING TO ASK THE HAYS COUNTY TAX ASSESSOR TO RUN

[01:45:07]

WE'LL BE PROVIDING THAT INFORMATION TO YOU IN DETAIL AT THE AUGUST 19TH MEETING. SO THAT SECOND MEETING, YOU'LL SEE ALL THAT WITH ALL THOSE CALCULATIONS. IT'S A GOOD QUESTION. THE OTHER THING I WAS GOING TO MENTION TO YOU IS THE DISCUSSION WE HAD WITH COUNCIL IN APRIL WAS HOW TO MINIMIZE THE LONG TERM IMPACTS ON THE TAX RATE. SO WE HAVE THIS ONE YEAR SNAPSHOT OF 2526, WHICH IS IMPORTANT. BUT THE COUNCIL LOOKED AT WHAT WAS THE BEST STRATEGY TO MANAGE COSTS OVER THE LONG TERM. AND SO BY RAISING IT MORE THIS FIRST YEAR, YOU MINIMIZE WHAT THAT COST IS GOING TO BE IN THE FUTURE. THAT THAT'S KIND OF THE DISCUSSION THAT WE HAD WAS TRYING TO MINIMIZE WHAT THAT THE RATE COULD CONTINUE TO GROW UP IN THE OUT YEARS IF YOU DIDN'T MAKE THAT CHANGE THIS YEAR. SO I JUST WANT TO REMIND EVERYONE OF THAT. THANKS. WELL, IF I'M IF I'M LOOKING AT THIS GRAPH RIGHT. AND I'M GOING TO TRY AND PROBABLY OVERSIMPLIFY IT, THE BLUE IS BASICALLY OUR, OUR SERVICE TO THE CITY. RIGHT. AND THEN THE, THE GOLD AND THE YELLOW IS, IS OUR PAYMENT ON DEBT. THAT'S CORRECT. AND SO IT LOOKS LIKE WE'RE JUST TRYING TO MAINTAIN THE SAME LEVEL OF, OF SERVICES WITHOUT HAVING TO CUT ANYTHING AND THEN STILL PAY THE DEBT THAT WE, THAT WE'VE TAKEN ON. BLESS YOU. THAT'S, THAT'S THAT'S WHAT'S LEADING TO THE.

YES. THAT'S THE THAT'S THE ASSUMPTION THAT WAS MADE AT THAT TIME THAT THEY DID NOT CONSIDER WHAT THE CITY'S NO MAY BE SHIFTING TO, AND HOW MUCH WE WOULD BE ALLOWED TO RAISE FROM PROPERTY TAX. THEY FOCUSED ON THE DEBT SERVICE COMPONENT, THE YELLOW PART OF THE BAR. THAT DEBT SERVICE COMPONENT IS DIRECTLY RELATED TO SERVICES THAT WE'RE PROVIDING TO THE COMMUNITY, SUCH AS THE ROAD BONDS THAT ARE NOW COMING ON, THAT WE'RE HAVING TO DRAW THAT MONEY. NOW, YOU KNOW, THE BONDS WERE ISSUED, BUT WE DON'T DRAW THAT MONEY ALL THE TIME. SO WE START PAYING INTEREST WHEN WE START DRAWING THE MONEY, ACTUALLY. SO THIS IS A DIRECT RESULT OF ALL OF THIS CONSTRUCTION. WE'RE GOING TO START SEEING. SOME OF IT IS IN ADVANCE. WE'RE DRAWING THAT TAX RATE IN ADVANCE. SO WE'RE PAYING IT. BUT IT'S STILL PAYING OFF THAT THOSE BONDS FOR THE BONDS. YES YOU'RE CORRECT. SO THIS IS A COMPARISON OF OUR CURRENT PROPERTY TAX RATES WITH OUR NEIGHBORING CITIES. THE TEN CITIES THAT WE COMPARE OURSELVES TO. ARE LOWEST ON THIS GRAPH IS BUDA. WE DON'T KNOW WHAT THEIR TAX RATES WILL BE NEXT YEAR. SO THIS IS JUST A SNAPSHOT OF RIGHT NOW. CURRENT TAX RATES OF EACH CITY. AND ON THE OTHER SIDE OF THE SPECTRUM IS CITY OF SAN MARCOS AT $0.60. WE'RE ALMOST IN THE MIDDLE AT NUMBER SEVEN POSITION COMPARED TO THESE OTHER CITIES. THIS SLIDE SHOWS THE VALUATION ASSESSED. VALUATION PER CAPITA FOR THESE SAME CITIES. SO OF COURSE AUSTIN WILL BE BECAUSE THEY'RE SO LARGE THEIR ASSESSED VALUATION SO HUGE PER CITIZEN OR PER RESIDENT. IT IS A HIGHER NUMBER THAN A SMALLER CITY WITH A SMALLER ASSESSED VALUATION. AND HENCE THAT'S WHY YOU SEE KYLE ON THE FAR LEFT SIDE, MORE SO THAN ON THE RIGHT SIDE. SO IF YOU HAVE CITIES THAT HAVE HIGHER ASSESSED VALUATIONS AND SMALLER POPULATIONS, THEY WILL BE MORE TO THE RIGHT. IF I IF I COULD

[01:50:04]

WHAT DO YOU PAY IS THE REAL QUESTION. YEAH THAT'S IMPORTANT BECAUSE YOU KNOW WHEN YOU LOOK AT IT YOU'RE LOOKING AT YOU'RE DISTRIBUTING MORE OF YOUR INFRASTRUCTURE NEEDS THROUGH LESS PEOPLE. SO THAT'S WHY THE RATES ARE SO HIGH. SO IF YOU'RE BUILDING ROADS OR YOU'RE CITY SERVICES, EVERYTHING ELSE, IT'S LESS PEOPLE PAYING FOR THOSE. SO THAT'S WHY THE EVALUATIONS ARE HIGHER BECAUSE THERE'S LESS PRODUCT TOO. SO THERE'S A LOT OF COMPONENTS TO THIS. WHY IT IS PAYING SO MUCH MORE FOR THEIR HOMES THAN WE ARE. WELL, RIGHT. AND IT ALSO SHOWCASES WHY YOU WANT TO HAVE MORE COMMERCIAL PROPERTIES, RIGHT? COMMERCIAL PROPERTIES GENERALLY REQUIRE LESS SERVICES, BUT THEY HAVE A MUCH BIGGER IMPACT ON THE TAX BASE AND AN AUSTIN NUMBER AS AN EXAMPLE, YOU KNOW, HUGE COMMERCIAL TAX BASE IN THAT CITY. YOU CAN SEE WHY IT REALLY HELPS. SO JUST SOMETHING TO THINK ABOUT AS YOU THINK ABOUT THESE RATES, YOU CAN SOMETIMES GET FOCUSED JUST TOO MUCH ON THE RATE. IF EVERYTHING ELSE WAS EQUAL, THAT WOULD PROBABLY BE THE APPROPRIATE QUESTION. BUT IT'S BUT IT'S NOT. WELL, AND I THINK THE OTHER REALLY IMPORTANT SLIDE THAT WE JUST SAW WAS WHO WHO'S WHAT THE TAXING ENTITIES ARE THAT GO INTO YOUR TAX BILL.

AND THE CITY'S TAX BILL IS A SMALL PORTION OF THE OVERALL TAXES THAT YOU PAY. BUT PEOPLE, SINCE THEY LIVE IN THE CITY, THINK IT'S ALL CITY TAXES AND THAT WE CONTROL ALL OF THAT. THE OTHERS SET THEIR OWN TAX RATES. WE DON'T SET THOSE RATES. YES, MA'AM. I 100% AGREE. I THINK THE OTHER INTERESTING POINT IS THAT THE LEGISLATURE PASSED A NEW BILL. I THINK THE HOMESTEAD EXEMPTION EXEMPTION IS GOING UP 40,000. WE HAVE 40. YEAH. SIGNIFICANT AMOUNT. I FORGOTTEN THE NUMBERS, BUT THAT IS ON A BALLOT, I BELIEVE THIS FALL. I'M QUITE SURE THE RESIDENTS OF TEXAS WILL APPROVE THAT. SO THAT WILL BE A LOWERING FOR MOST PEOPLE'S TAX BILL ON JUST THE SCHOOL SIDE OF THE TAXES. ALTHOUGH WE DON'T KNOW EXACTLY WHAT ALL THOSE IMPACTS WILL BE.

THAT WILL BE SOMETHING THAT FOR AN AVERAGE HOMEOWNER THOUGH, IN KYLE THAT WILL HELP OFFSET SOME OF THIS INCREASE. SO JUST WANTED TO POINT THAT OUT TO YOU. I THINK TO DOCTOR HARRIS'S POINT, IT'S THERE'S A LOT OF DIFFERENT COMPONENTS IN WHAT YOU PAY. IT'S NOT JUST THE CITY TAXES. THANK YOU. PERVEZ, I'M CURIOUS TO KNOW AND I'M WONDERING IF THIS IS WHAT'S ON SLIDE 55, WHAT PERCENTAGE OF OUR TOTAL BUDGET IS FUNDED BY PROPERTY TAXES IS THAT? SLIDE 55. THE 20% THERE.

THAT'S CORRECT, THAT'S CORRECT OKAY. THANK YOU. SO, MAYOR PRO TEM, I KNOW YOU WANTED A SHORT BREAK AT TEN. I HAVE A COUPLE OF SLIDES ON PROPERTY TAX RATES AND WE CAN STOP AT THAT AFTER THAT.

OKAY. THAT'S FINE. YEAH. IT'S JUST INCREDIBLY STUCK RIGHT AT TEN. SO NEXT FEW SLIDES YOU'LL SEE A LOT OF BLANKS THAT WE JUST DON'T HAVE THE INFORMATION QUITE YET. AND WE'LL SHARE THAT WITH YOU IN DETAIL ON AUGUST 19TH. BUT HERE ON SLIDE 63, THIS IS A VERY HIGH LEVEL COMPARISON OF OUR TAX ROLL BETWEEN 25 AND 24. I DIDN'T HAVE THESE NUMBERS WHEN WE POSTED THE AGENDA, BUT I CAN QUICKLY SHARE WITH YOU THE 2025 CERTIFIED TAX ROLL. IF YOU EXCLUDE THE TERCES, WE HAVE SIX TERCES. IF YOU PULL THEM OUT ARE. TAXABLE ASSESSED VALUATION NET OF TERS IS 6.2 BILLION. IF YOU COMPARE THAT TO 24, WHICH IS 6.1 BILLION. THE NET DIFFERENCE WITHOUT TAXES IS 126 MILLION.

NOT A WHOLE LOT. THE NEEDLE DIDN'T CHANGE A WHOLE LOT. IT'S 2.1% FOR CITY ONLY. IF YOU THROW

[01:55:08]

THE CURRENT. ASSESSED VALUATION FOR 24 TAX YEAR 24. THIS IS ALSO CONFUSING. THESE DATES ARE TAX YEAR. SO TAX BILLS GO OUT IN OCTOBER OF EVERY YEAR. SO THAT'S HOW THEY IDENTIFY THE TAX YEAR TO BE. SO TAX YEAR 25 IS OUR CITY'S NEXT FISCAL YEAR. FISCAL YEAR 26. SO FOR THE CURRENT TAX YEAR WITH WITH THE TERCES IS 6.9 BILLION. SO THE DIFFERENCE IS ABOUT 284 MILLION. OR WHEN YOU INCLUDE THE TERCES, THE OVERALL TAX GROWTH IN THE CERTIFIED TAX ROLL IS 4.1%. IT'S LIKE RAIN WHEN YOU WANT IT TO RAIN OVER YOUR FRONT YARD, IT NEVER RAINS, RIGHT? SO ALL THE GROWTH IS HAPPENING. MOST OF THE GROWTH IS HAPPENING IN OUR TERCES AS COMPARED TO CORE CITY. OUTSIDE OF THE CORES. SO NEXT FEW SLIDES, I JUST DON'T HAVE THE INFORMATION YET AND WE CAN PAUSE HERE FOR A TIME IF YOU LIKE. ALL RIGHT. THANK YOU PROFESSOR. IT IS 1003 AND WE ARE GOING TO RECESS FOR TEN TEN MINUTES. ALL RIGHT. SO LET'S GET BACK HERE AT WE'LL MAKE IT 11 MINUTES. SO ALL RIGHT. THANK YOU. I WANT TO CALL THIS SPECIAL MEETING BACK TO ORDER. THE TIME IS 1020 YOUR TIME. I MEAN, IT SHOWS A GREEN LIGHT WE'RE ON. I CALL THIS MEETING BACK TO ORDER. TIME IS 1021. SO, MAYOR AND COUNCIL, WE STOPPED AT PROPERTY TAX. WE'RE GOING TO PICK UP WITH SALES TAX.

AND I'M GOING TO SHARE WITH YOU SOME STATISTICS AND HIGHLIGHTS OF SALES TAX. SO THIS IS A HISTORICAL CHART SHOWING FROM 2008 TO 2025 WHICH IS THE YELLOW BAR SALES TAX HAS RANGED ANY FROM 2.2 MILLION IN 2008 TO ABOUT 20,000,000 IN 2025. THE $20 MILLION IS THE BUDGET THAT COUNCIL APPROVED FOR THIS YEAR. BASED ON OUR PROJECTIONS, THE GREEN BAR IS WHAT WE'RE PROJECTING FOR SALES TAX NEXT FISCAL YEAR, $21.9 MILLION, WHICH IS A 9% INCREASE FROM THE YELLOW TO THE GREEN BAR BETWEEN 25 TO 26. SO WHEN YOU CONVERT THAT SALES TAX COLLECTION RATE TO PER CAPITA, IT DIDN'T WANT TO GO BEFORE 2014 ALL THE WAY TO 22,008. THIS GIVES YOU A GOOD REPRESENTATION OF HOW OUR SALES TAX HAS INCREASED. AS WE HAVE BROUGHT MORE RESIDENTS HAVE MOVED INTO CITY OF KYLE HOMEOWNERS, RENTERS, BUSINESSES. SO WE WENT ANYWHERE IN 2014 BELOW $150 PER PERSON TO OVER $300. WE'VE LITERALLY DOUBLED SALES TAX PER CAPITA OVER THIS TIME PERIOD. SO THE NEXT OPERATING FUND WE'LL TALK ABOUT, IT'LL BE IN THE SAME FORMAT AS WE TALKED ABOUT GENERAL FUND. THE NEXT OPERATING BUDGET IS THE WATER UTILITY FUND. AND WE'LL GIVE YOU THE HIGHLIGHTS AND THE SUMMARY. SO THE WATER UTILITY FUND AS CITY MANAGER IS RECOMMENDING TO CITY COUNCIL FOR ADOPTION THE REVENUES AND TRANSFERS. IN TOTAL, $28.6 MILLION. EXPENDITURES AND TRANSFERS OUT TOTAL 32.8 MILLION OF THAT. AS WE DISCUSSED EARLIER IN THE GENERAL FUND PORTION OF THE PRESENTATION, 2.1 MILLION IS FOR EQUITY TRANSFERS TO THE GENERAL FUND. THIS IS THE REVENUE BASED 8% REVENUE BASED TRANSFERS AND ANOTHER $2.2 MILLION FOR INDIRECT COST REIMBURSEMENT TO THE GENERAL FUND FOR PROVIDING SUPPORT ON THE END ENDING BALANCE, WE ARE PROJECTING 11.4 MILLION IN ESTIMATED ENDING BALANCE FOR THE

[02:00:01]

WHAT PORTION OF GENERAL FUND COSTS WERE BEING INCURRED TO SUPPORT THE WATER UTILITY OR WASTEWATER STORM DRAINAGE? NOW, YOU CAN CLEARLY SEE EVERY YEAR HOW MUCH OF THAT IS REIMBURSED TO THE GENERAL FUND. OKAY. THANK YOU. SO THIS NEXT SLIDE IS THE PROPOSED BUDGET. SAME THING HERE. SAME SETUP AS THE GENERAL FUND TO ACTUAL YEAR'S APPROVED BUDGET. CURRENT YEAR CITY MANAGER'S PROPOSED. AND THEN THE DIFFERENCE IN DOLLARS AND PERCENTAGE FROM APPROVED BUDGET.

IF YOU LOOK AT THE LINE NUMBER. 15 FOR UNDER THESE CITY MANAGER PROPOSED BUDGET COLUMN, YOU SEE A FOUR POINT NEGATIVE NUMBER. AND THAT'S BASICALLY WE ARE DRAWING DOWN THE FUND BALANCE, EXCESS FUND BALANCE RATHER THAN RAISING RATES. SO WE'RE USING THE EXCESS RESERVES OVER AND ABOVE THE MINIMUM REQUIRED AND APPLIED IT TO OFFSET RATE INCREASES NEXT YEAR FOR OUR CUSTOMERS. LINE NUMBER 17, OUR FUND BALANCE IN THE UTILITY FUND IS A HEALTHY, HEALTHY BALANCE OF

[02:05:03]

RESIDENTIAL. MULTIFAMILY, COMMERCIAL AND IRRIGATION. THEY WILL ALSO SEE A 20% RATE INCREASE IN THEIR VOLUMETRIC CHARGES. THE GALLONS OF WATER THAT THEY ACTUALLY USE FOR ALL CUSTOMER CLASSES. THIS IS BASED ON TRUE COST OF SERVICE STUDY DONE BY AN INDEPENDENT CONSULTANT. THEY TOOK INTO ACCOUNT ALL OF THE COSTS THAT THE UTILITY INCURS. THEY ALLOCATED BASED ON WHAT PART OF UTILITY FUNCTION THAT EACH CUSTOMER CLASS UTILIZES BASED ON USER CHARACTERISTICS, AND WHEN THE RESULTS CAME OUT, THEY CAME OUT THAT WE NEEDED A 20% RATE INCREASE ACROSS. SO THE TWO BARS THAT YOU SEE TO THE RIGHT OF THIS SLIDE IS SHOWING THE RESIDENTIAL CUSTOMERS AVERAGE MONTHLY BILL IMPACT. IF THEY RECEIVED A 20% RATE INCREASE, WHAT IS THEIR AVERAGE BILL IMPACT? A CUSTOMER THAT USES 5500 GALLONS OF WATER EVERY MONTH. THEIR AVERAGE BILL IS GOING TO GO UP BY $15.35 FROM 7673 TO 9207. IT'S A 20% INCREASE. THIS IS ONLY FOR INSIDE CITY RESIDENTIAL CUSTOMER. FOR OUTSIDE CITY WATER CUSTOMER. THE MINIMUM MONTHLY CHARGE GOES UP BY 77%. FOR ALL OUTSIDE CITY CUSTOMER CLASSES.

THEN THERE IS ALSO A 77% RATE INCREASE IN THEIR VOLUME CHARGE FOR RESIDENTIAL CUSTOMERS, 222% RATE INCREASE FOR COMMERCIAL CUSTOMERS, VOLUME CHARGE, AND 143% RATE INCREASE FOR VOLUME CHARGE FOR IRRIGATION CUSTOMERS. SO FOR AN AVERAGE OUTSIDE CITY, RESIDENTIAL CUSTOMER, THEIR WHO USES 5500 GALLONS A MONTH AVERAGE THROUGHOUT THE YEAR, THEIR MONTHLY AVERAGE BILL IS GOING TO GO UP BY $71.27, WHICH IS A 77% RATE INCREASE GOES UP FROM. $92.77 TO $164.04. THIS IS FOR OUTSIDE CITY CUSTOMERS, NOT INSIDE CITY CUSTOMERS. SO ON THIS SLIDE, IF YOU LOOK AT THE INSIDE, THE TOP HALF IS FOR INSIDE CITY RESIDENTIAL. THE BOTTOM HALF, THE RED PART IS OUTSIDE CITY RESIDENTIAL. WE HAVEN'T TALKED ABOUT THE WASTEWATER YET, BUT THIS GIVES YOU A GLIMPSE OF WHAT'S IN THE NEXT FEW SLIDES. SO THE WATER FOR AVERAGE RESIDENTIAL CUSTOMER, AS I SHOWED YOU, GOES FROM 7673 TO 9207, A NET INCREASE OF $15.35, OR 20%, FOR WASTEWATER INSIDE CITY. IT WILL GO UP BY 6%. AND WE'LL GO INTO THE DETAILS HERE IN A MINUTE.

THEN IF YOU LOOK AT THE BOTTOM OF THE SLIDE, WHICH IS FOR OUTSIDE CITY, RESIDENTIAL WATER RATES ARE GOING UP BY 77% OR $71.27, AND WASTEWATER OUTSIDE CITY CUSTOMERS WILL SEE A 30% INCREASE. AND WE'LL SHOW YOU THAT IN A MINUTE. SO IF YOU COMPARE OUR AVERAGE RESIDENTIAL WATER BILL, THIS IS FOR INSIDE CITY CUSTOMERS ONLY. THIS DOES NOT INCLUDE OUTSIDE CITY CUSTOMERS. WE HAVE INCLUDED EVERY CITY'S CURRENT RATES BECAUSE WE DO NOT KNOW WHAT THEY'RE PROPOSING TO THEIR COUNCILS IN TERMS OF INCREASING FOR NEXT YEAR, IT IS VERY LIKELY THAT THEIR RATES WILL ALSO CHANGE AS WE ARE CHANGING OURS. BUT FOR KYLE, THE YELLOW BAR IS

[02:10:06]

SO THE WASTEWATER UTILITY FUND WILL REIMBURSE THE GENERAL FUND 1.4 MILLION NEXT YEAR FOR RECEIVING SUPPORT SERVICES FROM THE CITY'S GENERAL FUND. THE ENDING BALANCE FOR THE WASTEWATER UTILITY FUND IS 17.3 MILLION, AND WE'LL GO OVER THE RATE INCREASES, BOTH FOR INSIDE AND OUTSIDE CITY HERE IN A FEW MINUTES. THE TOTAL NUMBER OF NEW POSITIONS BEING RECOMMENDED FOR WASTEWATER UTILITY IS FIVE FTES. THE SOURCES OF FUNDS FOR WASTEWATER UTILITY FUND IS TOTAL OF ALMOST $16 MILLION. 95% OF THAT COMES THROUGH WASTEWATER SERVICE RATES. AND THEN OF COURSE, YOU HAVE MISCELLANEOUS AND OTHER MISCELLANEOUS OTHER SMALL FEES, CUT OFF FEES, LATE FEES, AND OTHERS. PRIMARILY INTEREST INCOME. ON THE EXPENDITURE SIDE FOR WASTEWATER UTILITY, THE USES OF THOSE FUNDS, THE NUMBER ONE AREA THAT THE UTILITY EXPENSE THOSE FUNDS IS THE WASTEWATER TREATMENT PLANT OPERATIONS 27% OR $3.7 MILLION. TRANSFERS OUT IS THE NEXT AREA 2.6 MILLION, OR 19%. AND NUMBER THREE IS WASTEWATER OPERATIONS. THE BEST WAY TO LOOK AT THIS BETWEEN WASTEWATER TREATMENT PLANT OPERATIONS AND WASTEWATER OPERATIONS, TREATMENT PLANT OPERATIONS IS ALL WITHIN THE FENCE. THE PLANT WASTEWATER OPERATIONS IS WHAT THEY HAVE TO INCUR OUTSIDE THAT FENCE TO GET TO THE CUSTOMER AND BRING IT BACK. HERE'S THE OVERALL FUND SUMMARY FOR WASTEWATER UTILITY FUND. SAME SETUP AS YOU SAW FOR THE OTHER FUNDS. HERE. I WOULD LIKE TO HIGHLIGHT THE LINE NUMBER 18. THE FUND BALANCE PROJECTED FOR NEXT YEAR FOR WASTEWATER IS 17.3 MILLION. AND THAT EXCEEDS THE MINIMUM REQUIRED. SO ON THE RATE INCREASE SIDE FOR WASTEWATER INSIDE CITY CUSTOMERS. WILL BE RECEIVING A 6% RATE INCREASE BASED ON THE COST OF SERVICE STUDY FOR MINIMUM MONTHLY CHARGE AND ANOTHER 6% RATE INCREASE FOR VOLUME. VOLUMETRIC CHARGE FOR INSIDE CITY CUSTOMERS. SO THE BILL WILL INCREASE BY $2.72 FOR AN AVERAGE INSIDE CITY RESIDENTIAL CUSTOMER FROM $45.36 TO $48.08 PER MONTH. FOR OUTSIDE CITY CUSTOMERS, THE MINIMUM MONTHLY CHARGE IS GOING TO INCREASE BY 35%. THE VOLUME CHARGE FOR RESIDENTIAL CUSTOMERS WILL INCREASE BY 27%, AND RATE INCREASE FOR ALL OTHER NONRESIDENTIAL CUSTOMERS. VOLUME CHARGE WILL INCREASE BY 53%. SO THE GRAPH HERE SHOWS YOU OUR THE AVERAGE MONTHLY BILL FOR OUTSIDE CITY RESIDENTIAL WASTEWATER CUSTOMER. THEIR BILL IS GOING TO GO UP BY 30% OR $22.57 FROM $74.90 TO 97 AND $0.47. SO HERE'S THE FINAL SLIDE THAT WRAPS UP THE RATE INCREASES BETWEEN WATER AND WASTEWATER BETWEEN INSIDE AND OUTSIDE. SO

[02:15:01]

I'LL HAVE TO GET THAT FROM OUR UTILITY BILLING. I THINK THAT'S JUST A CURIOSITY FOR ME. YOU KNOW, AS I THINK. THAT THAT MAKES A SIGNIFICANT DIFFERENCE. BUT THE BILLS AND ALSO ON THE WATER BILLS, THERE ARE OTHER THINGS. THERE IS STORMWATER AND TRASH COLLECTION. AND SO THEIR BILLS THIS ISN'T THE ONLY THING ON THEIR BILL. SO THE TRASH COLLECTION FOR TDS IS GOING UP 2.5% THIS COMING YEAR IS ALL THAT'S GOING UP. YES. SO THEIR OVERALL BILLS WON'T NECESSARILY REFLECT DEPENDING ON WHAT'S ON THAT BILL WON'T NECESSARILY BE EXACTLY WHAT'S HERE. AND IT'S IMPORTANT TO NOTE THAT THIS IS AN AVERAGE WATER BILL AND WASTEWATER BILL, WATER AND WASTEWATER. SOME CUSTOMERS WILL BE BELOW THAT. SOME CUSTOMERS WILL BE ABOVE THAT. BUT THE PERCENTAGE WILL BE ABOUT THE SAME. YES. SO HERE'S THE AVERAGE MONTHLY WASTEWATER RESIDENTIAL BILL COMPARISON. HERE. AGAIN, JUST LIKE WATER, WE DON'T KNOW WHAT THE RATE INCREASES WILL BE FOR THE OTHER CITIES WE'RE COMPARING TO. BUT FOR KYLE, IT IS THE NEW RATE THAT WE HAVE PLUGGED IN IN THIS GRAPH. SO NEXT UP IS OUR STORM DRAINAGE UTILITY FUND. SAME SETUP AS YOU HAVE SEEN FOR THE OTHER THREE OPERATING FUNDS. THIS IS THE LAST OF THE FOUR OPERATING FUNDS

[02:20:05]

[02:25:05]

AND THEN YOU HAVE EITHER GENERAL FUND OR STORM DRAINAGE FUNDS USED TO MAKE THOSE PROJECTS HAPPEN. OKAY. AND DRAINAGE IS, YOU KNOW, IT'S EXPENSIVE. YOU KNOW, THAT'S ONE OF THE REASONS THAT WE TRY TO OUR DEVELOPMENT STANDARDS, OUR DEVELOPMENT CODE IS DESIGNED TO MAKE SURE THAT WHEN NEW DEVELOPMENTS ARE COMING IN, THEY'RE PUTTING IN THE CORRECT DRAINAGE IMPROVEMENTS.

AND THEY'RE PAYING THOSE COSTS TO MAKE SURE EVERYTHING IS DONE CORRECTLY. BUT AS CITIES HAVE DEVELOPED OVER THE YEARS, THOSE WEREN'T ALWAYS DONE THE WAY IT NEEDED TO BE OR THE STANDARDS HAVE CHANGED. AND SO THAT'S WHY YOU END UP WITH SOME OF THESE PROJECTS THAT WE HAVE TO HAVE TO HELP HANDLE, HANDLE THAT IN OTHER AREAS. OKAY. HOPEFULLY THAT MAKES SENSE. IT'S THE DRAINAGE CAN BE VERY EXPENSIVE. YEAH. EVEN I GUESS MORE THAN A ROAD SOMETIMES. RIGHT. BECAUSE YOU HAVE TO HAVE A WAY TO GET THAT WATER AND DIVERT IT TO YOUR CREEKS. THAT'S RIGHT. YES, SIR.

BUT YOU KNOW, HOPEFULLY A LOT SINCE WE DO HAVE AN EXTENSIVE ROAD PROGRAM GOING IN. ALL OF THOSE ROADS HAVE DRAINAGE COMPONENTS TO THEM AS WELL, AND THAT WILL BE HELP. I THINK THAT WILL HELP A LOT OF THE DRAINAGE IN THOSE, AT LEAST THOSE AREAS FOR THOSE STREETS WHERE WE'RE PUTTING THEM IN. THANK YOU. OKAY, SO HERE'S THE FUND SUMMARY FOR THE DRAINAGE FUND. SAME SETUP AS THE OTHER OPERATING FUNDS OF THE CITY TO ACTUAL YEAR'S APPROVED BUDGET. CURRENT YEAR CITY MANAGER'S PROPOSED FOR THIS FUND. I WOULD LIKE TO DRAW YOUR ATTENTION TO LINE NINE.

YOU'LL SEE A NEGATIVE. THAT NEGATIVE IS THE DIFFERENCE BETWEEN REVENUE AND EXPENDITURES. SO BASICALLY WE ARE DRAWING DOWN EXCESS FUND BALANCE TO OFFSET DRAINAGE FEE INCREASE. SO IT HELPS OUR CUSTOMERS TO MINIMIZE THAT RATE INCREASE. WE ARE STILL MAINTAINING THE FUND BALANCE AT OR SLIGHTLY ABOVE THE MINIMUM REQUIRED. SO HERE'S THE FEE ADJUSTMENT FOR STORM STORM DRAINAGE UTILITY. THE DRAINAGE FEE STUDY WAS COMPLETED IN THIS MONTH BY HDR AND ENGINEERING FIRM. IN A NUTSHELL, STUDY FOUND THAT COST RESPONSIBILITY HAS SLIGHTLY SHIFTED BETWEEN RESIDENTIAL AND COMMERCIAL CUSTOMERS. THE DRAINAGE FEE IN KYLE WAS IMPLEMENTED IN 2015, HASN'T BEEN UPDATED SINCE THAT TIME. AND THIS THIS WAS A STUDY THAT WAS WAY PAST DUE. SO THE RECOMMENDED DRAINAGE FEE ADJUSTMENT FOR NEXT YEAR. THE CITY'S CONSULTANT OR EXPERT IS RECOMMENDING FOR RESIDENTIAL CUSTOMERS THAT THE FEE BE INCREASED FROM $5 PER MONTH TO $6, OR $1 INCREASE PER MONTH. RESIDENTIAL CUSTOMERS RECEIVE A FLAT CHARGE, REGARDLESS OF IMPERVIOUS COVER. FOR COMMERCIAL CUSTOMERS, THE DRAINAGE FEE IS CALCULATED BASED ON IMPERVIOUS COVER, SO EVERY COMMERCIAL CUSTOMER IS UNIQUE AND DIFFERENT, AND THEY GET A CUSTOM FEE CHARGED TO THEM BASED ON THEIR IMPERVIOUS COVER. SO THE BEST WAY TO SHOW THIS, RATHER THAN SHOWING YOU ALL CUSTOMERS, IS THE AVERAGE MONTHLY FEE IMPACT OF THIS STUDY ON A AVERAGE COMMERCIAL CUSTOMER. SO THE AVERAGE COMMERCIAL CUSTOMER WILL SEE A $68.72 DECREASE IN THEIR DRAINAGE FEE PER MONTH FROM. $237.12 TO $168.40 PER MONTH. THE FEE ADJUSTMENT TAKES INTO ACCOUNT THE DRAWDOWN OF THE EXCESS RESERVE OF FUND BALANCE TO MINIMIZE MINIMIZE THE FEE INCREASE, THE CONSULTANTS ALSO RECOMMEND THAT THE CITY REVIEW THIS FEE ON AN ANNUAL BASIS AND ADJUST ACCORDINGLY. BECAUSE OUR COSTS ARE CHANGING, CAPITAL COSTS ARE CHANGING EVERY YEAR. SPEAKING OF CAPITAL COSTS, NEXT SECTION OR SEGMENT IS THE FIVE YEAR CAPITAL IMPROVEMENTS SPENDING PLAN. SO AT A VERY HIGH LEVEL, THE CITY'S FIVE YEAR SPENDING PLAN, WHICH COVERS FISCAL YEAR 26 THROUGH 2030, HAS 125 DIFFERENT CAPITAL PROJECTS

[02:30:03]

SO THERE WAS A QUESTION, I BELIEVE, DOCTOR ZUNIGA, YOU HAD ASKED, HOW MUCH DO WE HAVE FOR STORM DRAINAGE? IF YOU LOOK AT NUMBER FIVE, IT'S $31.5 MILLION OVER THE FIVE YEAR WINDOW. NEXT YEAR, THEY'RE PROJECTING ABOUT $7 MILLION ON VARIOUS CIP PROJECTS TO KNOW WHAT IS INCLUDED IN THAT, $7 MILLION FOR NEXT YEAR FOR STORM DRAINAGE, YOU WOULD HAVE TO LOOK AT THE CIP SPENDING PLAN. THE INDIVIDUAL PROJECTS ARE LISTED VERY SPECIFICALLY WHICH PROJECT WHAT THE LOCATION IS AND WHAT THE DOLLAR VALUE IS OF THOSE PROJECTS. SO. HEY, PERVEZ. YES, SIR. WHAT'S THE MASSIVE JUMP FROM IN THE TRANSPORTATION FUND FROM 26 TO 27? MASTER PLAN.

RELATED PROJECTS. THE GEO. YOU'LL SEE THE BOND ON 20 LINE SIX. OKAY, I WASN'T SURE IF IT WAS ANYTHING ELSE. NO. THANK YOU. WHAT? I THOUGHT BOND WAS UNDER A ROAD BOND PROGRAM. I WAS THINKING TRANSPORTATION IS IN LIKE, PUBLIC TRANSPORTATION. THERE'S A NUMBER OF SMALLER PROJECTS THAT MAKE THAT UP. SOME OF THEM ARE RELATIVELY SMALL, MAYBE A HALF $1 MILLION PROJECTS OR SMALLER ONES MIGHT CAN DETAIL SOME OF THOSE IF YOU'RE IF YOU'RE INTERESTED IN SEEING IT.

YEAH. MIKE TRIMBLE, TRANSPORTATION DIRECTOR. SO THERE ARE NON ROAD BOND TRANSPORTATION PROJECTS INCLUDED AS WELL. AND SO YEAH THAT SHOULD BE SHOWING UP HERE. WE HAVE SOME OF THOSE PROJECTS THAT ARE THAT ARE IN THE TOURS. WE HAVE SOME OF THOSE PROJECTS THAT ARE ACTUALLY JUST FUNDED OUT OF OTHER FUNDING SOURCES. BUT IT'S A MIX ALL THE ROAD BOND PROJECTS SHOULD BE UNDER, UNDER THE ROAD BOND, IT LOOKS LIKE BASED ON THE SPENDING PLAN. SO THESE WOULD BE THE ROUNDABOUTS. I THINK THIS IS THE DAISY AND THOSE ARE SOME OF THOSE. YEAH WE SEE THEM IN YEARS TOO. WE TALKED ABOUT NOT JUST THE ROUNDABOUTS BUT ALSO THE NEW ROUNDABOUTS THAT WE'RE DESIGNING ON COLORS CROSSING AT MARKETPLACE AND COW CROSSING, AS WELL AS SOME OF THE OTHER DAISY DOWNING IMPROVEMENTS, ALL THOSE THINGS. SO WE HAVE SOME OF THAT FUNDING INCLUDED IN HERE AS WELL. AND THE MATCH FOR CAPCOM, I'M SORRY, MATCH AS WELL. AND LASTLY, THE PARKS BOND IN 2020

[02:35:07]

REMEMBER I GAVE YOU TWO BIG NUMBERS FOR TAX SUPPORTED AND NON-TAX SUPPORTED. THIS WILL NOW BREAK DOWN OF WHAT THOSE ARE. SO FOR TAX SUPPORTED CIP THE TWO MAIN CATEGORIES ARE THE GEO BONDS THE ROAD BONDS AND THE PARKS BONDS. SO THAT'S WHAT YOU SEE ON LINES TWO AND THREE.

THOSE BONDS THAT HAVE ALREADY PASSED. YES. THE VOTERS HAVE ALREADY AUTHORIZED, BUT WE HAVE NOT ISSUED. RIGHT. SO ON LINE FOUR OF THAT $1.3 BILLION, 278.8 MILLION IS FROM PARKS, BONDS AND THE ROAD BONDS. THEN THERE ARE OTHER TAX SUPPORTED CIP PROJECTS IN THE FIVE YEAR WINDOW. RIGHT.

SO WHEN YOU LOOK AT THOSE 125 PROJECTS, THERE ARE PROJECTS THAT WILL HAVE TO BE PAID FOR WITH TAX. THESE ARE PARKS, SIDEWALKS, BRIDGES, ROADS. OTHER THAN ROAD BONDS. THE GENERAL FUND CIP ARE MOSTLY THOSE SIDEWALKS, STREETS, NON ROAD BOND STREETS, ROUNDABOUTS, INTERSECTION IMPROVEMENTS, TRAFFIC IMPROVEMENTS, THOSE TYPES OF PROJECTS UNDER PARK DEVELOPMENT CIPS YOU HAVE VARIOUS CIPS THAT DAVID HAS SHARED WITH YOU ALL IN THE MASTER PLAN OVER THE NEXT FIVE YEAR WINDOW. SO ALL IN ALL, IF YOU LOOK AT THE LAST LINE, NUMBER TEN OF THE $1.3 BILLION, 38% OR 490 MILLION OF THAT IS GOING TO BE TAX SUPPORTED IN ONE FORM OR ANOTHER. IF YOU LOOK AT YEAR NUMBER ONE, REMEMBER WE SAID THE TOTAL SPENDING IS 460 MILLION FOR NEXT YEAR. OF THE 460,000,180 MILLION IN YEAR, NUMBER ONE WILL BE TAX SUPPORTED. SAME SETUP. BUT NOW WE'RE GOING TO TALK ABOUT NON-TAX SUPPORTED. THESE ARE PROJECTS THAT ARE PAID THROUGH. USER FEES, DEVELOPER REIMBURSEMENTS. MOSTLY WATER WASTEWATER, THOSE TYPES OF PROJECTS AND TERS FUNDED PROJECTS. SO IF YOU LOOK AT THE.

BOTTOM LINE FOR LINE 22, WE'LL JUST CUT DOWN TO THE CHASE, 781 MILLION OF THE 1.3 BILLION, OR 61% WILL BE NON-TAX SUPPORTED. AND I THINK THE NEXT SLIDE WILL HELP PUT IT ALL TOGETHER. SO THOSE DETAILS FOR TAX SUPPORTED, THOSE DETAILS FOR NON-TAX SUPPORTED IS SHOWN HERE IN JUST ONE LINE ACROSS. SO THE FIRST ROW IS TAX SUPPORTED ACROSS. WE WENT OVER THIS 490 MILLION OR 39% NON-TAX SUPPORTED IS 781 MILLION OR 61.4% FOR A TOTAL GRAND TOTAL OF 1.3 BILLION.

[02:40:11]

THE ENGINEERS WANT $100 MILLION FOR TAX SUPPORTED PROJECTS. HOW MUCH OF THAT $100 MILLION DO WE STILL HAVE LEFT OVER IN THE BANK? HOW MUCH WE'RE GOING TO BRING IN FROM FEES, HOW MUCH WE'RE GOING TO BRING IN FROM INTEREST INCOME, HOW MUCH WE'RE GOING TO BRING IN FOR FROM OTHER TYPES OF REVENUES THAT SUPPORTS THOSE PROJECTS. THEN WE COME UP WITH A NET NUMBER THAT WE HAVE TO BORROW. THAT'S HOW IT WORKS, RIGHT? BECAUSE WE COULDN'T PAY ALL OF THESE OFF IN THAT NEXT YEAR. ALL OF THESE PROJECTS THAT YOU HAVE IN THERE, THAT'S JUST THE MONEY WE NEED. THEN IN YEAR ONE, WITHOUT EVEN COMPLETING THE PROJECTS, I WOULD HESITATE TO SAY THAT THAT NUMBER, THAT 460 MILLION IS WHAT WE'RE GOING TO HAVE TO FINANCE, BECAUSE I DON'T KNOW THAT YET. I HAVEN'T DONE THAT. I HAVEN'T GONE THROUGH THAT EXERCISE OF PROJECTING. OKAY. I GUESS IN MY MIND I THOUGHT IT WAS THIS AMOUNT PLUS WHAT WE NEED TO GET ALL THE SERVICES AND PAY OUR STAFF. SO THAT'S WHY WE'RE PUSHING A $630 MILLION BUDGET. IT'S OPERATING AND CAPITAL. THIS IS THE CAPITAL COMPONENT. AND ONE THING I ALWAYS LIKE TO MAKE CLEAR IS WHEN WE BORROW FUNDS, THEY'RE THEY'RE ONLY FOR CAPITAL IMPROVEMENTS. SO IF YOU LOOK AT THE FEDERAL GOVERNMENT THEY'RE RUNNING DEFICITS. THAT'S OPERATING SPENDING, ALL KINDS OF THINGS THAT ARE GOING ON HERE.

WE DO NOT BORROW $1 TO BE USED FOR ANY OPERATIONS THAT WE HAVE IN THE CITY. NO EMPLOYEE SALARIES BEING PAID BY BONDS OR ANY OF THOSE THINGS. IT'S SIMPLY THE CAPITAL PROJECTS THAT ARE BEING BUILT. SO HOPEFULLY THAT HELPS CLARIFY IT. BUT YOU'RE RIGHT, IT'S THIS NUMBER PLUS ALL THE OPERATING STUFF THAT WE WOULD HAVE IN THE GENERAL FUND. THAT'S THE TOTAL 600 MILLION, RIGHT? YEAH. AND OBVIOUSLY WE CAN'T WE'RE PROBABLY NOT GOING TO I GUESS. DO WE SPEND THAT MUCH NEXT YEAR. IS THIS GOING TO BE A SPENDING AMOUNT FOR SIX. WELL THAT'S THE PLAN. AND SO YOU KNOW IT IS VERY DIFFICULT TO PUT ALL OF THOSE DOLLARS INTO WORK IN ONE YEAR. BUT WE'RE TRYING WE'RE PUSHING VERY HARD TO GET THOSE PROJECTS DONE. BUT THE REALITY IS IT'S TOUGH TO GET 460. IT'S HALF $1 BILLION IN ONE YEAR DEPLOYED. THAT'S VERY CHALLENGING. BUT WE'RE GOING TO TRY TO DO THAT. GOT A QUESTION OKAY. COMMENT AGAIN. THE THING ABOUT BONDING FOR CAPITAL PROJECTS IS YOU SPREAD THAT COST OVER. NOT HOPEFULLY NOT THE LIFETIME OF THE PROJECT, BUT AT LEAST FOR THE NEXT FIVE, TEN, 15 YEARS AS THAT PROJECT DEVELOPS AND AS IT IS USED BY THE RESIDENTS, RATHER THAN ALL ONE YEAR HAVING TO BOND A LOT OF MONEY OR SPEND NO MONEY, ONE OR THE OTHER, THAT'S A IT'S A DIFFICULT BALANCE. THAT BALANCE HAS NOT BEEN IN EXISTENCE IN PAST YEARS, AND WE HAVE NOT DONE THE CAPITAL PROJECTS THAT WE HAVE NEEDED TO DO. AND THAT'S THE COMPLAINTS FOR THE RESIDENTS REFLECT THE NEGLECT THAT WE HAVE HAD OR SOMEWHAT NEGLECT THAT WE HAVE HAD AS WE'VE GROWN. SO THIS HELPS US CATCH UP AND IT SPREADS THE COST OVER THE USE OF THAT ITEM RATHER THAN DUMPING IT ALL IN ONE TIME. RIGHT. THAT'S CONCEPT KNOWN AS GENERATIONAL EQUITY IS THAT EVERYBODY PAYS FOR THEIR PROPORTIONAL SHARE OF THE COST THAT THEY'RE HERE. AND THAT'S EXACTLY RIGHT. I KNOW THESE ARE LARGE, EYE POPPING NUMBERS, BUT WE'RE A GROWING BIGGER CITY AND WE'RE GOING TO CONTINUE TO GROW. AND I THINK YOU REALLY HAVE TO LOOK AT THE

[02:45:04]

SO I'M GOING TO GUESS THAT WE DON'T JUST WRITE A CHECK FOR $131 MILLION WHEN WE TAKE POSSESSION OF THAT MONEY. SO WHAT HAPPENS TO IT ONCE WE RECEIVE IT? IT JUST SITS IN THE BANK OR WE EARN INTEREST ON IT. LIKE WHAT HAPPENS? WHAT DO WE DO? AT LEAST THE TIME BEING, I'VE BEEN HERE. WE DO NOT SELL BONDS IN ADVANCE. SO WHEN WE KNOW, WE KNOW EXACTLY WHAT WE'RE GOING TO SPEND, WE BORROW FROM OUR INVESTMENT POOL UNTIL SUCH TIME THAT WE KNOW WE'RE RUNNING SHORT, WE'VE GOT TO COVER IT. SO WE AT THAT POINT FIGURE OUT HOW MUCH IS THE NET BOND THAT WE NEED TO ISSUE. SO ON AUGUST 5TH, OUR CITY'S BOND COUNSEL AND FINANCIAL ADVISOR WILL BE COMING BEFORE YOU FOR ABOUT $125 MILLION OF NEW BOND ISSUE. THAT NUMBER DOLLAR AMOUNT WAS BASED ON WHAT THE ENGINEERS TOLD US, WHAT THE ACTUAL FIELD CONDITIONS WERE, WHAT WE ACTUALLY WROTE, CHECKS AND WHAT WE THINK WE'RE GOING TO WRITE CHECKS BEFORE THE NEXT BOND SALE. SO WE ISSUED WE CAME UP WITH THAT NUMBER. THAT'S HOW WE COME UP WITH THAT NUMBER. SO I DON'T KNOW, I'M GOING ABOUT IT THE LONG WAY TO ANSWER YOUR QUESTION, BUT. WELL, NO, THAT'S FINE, I UNDERSTAND. SO YOU SAID 125 MILLION. SO WE VOTE TO APPROVE THAT WE TAKE POSSESSION OF THAT MONEY. WE'RE NOT GOING TO SPEND IT THE NEXT DAY. SO WHERE DID THAT WHERE DOES THAT MONEY GO UNTIL WE SPEND IT? THERE ARE TWO PARTS TO THAT ANSWER. YEAH, WE'VE ALREADY SPENT SOME MONEY THAT WE GOT TO REIMBURSE THE INVESTMENT. OKAY. ALL RIGHT. THAT'S PART OF IT. AND THEN WE GOT TO KEEP SOME MONEY FOR THE CHECKS THAT BOTH MCS WILL BE WRITING. I LIKE THAT, ACTUALLY. WE INVEST IT. IT GOES INTO OUR SHORT TERM INVESTMENTS AND OUR INVESTMENT. THAT'S THE ANSWER. AND THEN WE DRAW THOSE INVESTMENTS DOWN AS THE CASH FLOWS ARE NEEDED TO ACTUALLY PAY THE EXPENSES. I JUST WASN'T SURE IF THERE WAS LIKE INCREMENTAL MONEY THAT WE COULD CLAW BACK WHILE WE'RE NOT SPENDING EVEN ON THE INVESTMENTS. WE HAVE TO BE SUPER CAREFUL. IF IT'S BORROWED MONEY, WE CANNOT EARN MORE THAN WHAT WE'RE PAYING ON THOSE DEBT. SO THERE IS A THING CALLED ARBITRAGE. WE DON'T WANT TO TAKE THAT RISK. WE HAVE TO PAY PENALTY AND INTEREST BACK TO IRS. OKAY. SO THIS IS OUR $1.3 BILLION CASH FLOW REQUIREMENT. NOW REMEMBER. WE BUILD PROJECTS.

THEY LOOK NICE. THEY HELP OUR CITIZENS. WE GOT TO PAY. AND WHAT FORM OF PAYMENT. SO HOW MUCH DEBT HAVE WE ALREADY TAKEN AND HOW MUCH DEBT WE'RE PLANNING TO TAKE ON. SO THIS IS AS OF TODAY, THE PRINCIPAL AMOUNT OF BONDS OUTSTANDING, $140,590,000. AND THESE ARE THE DIFFERENT TYPES OF DEBT. THIS IS PRINCIPAL ONLY. I'LL SHOW YOU IN A MINUTE WHAT THE INTEREST WILL BE ON THIS. SO THIS IS AS OF TODAY. ON AUGUST 5TH. STAFF WILL BE ASKING YOU IN OUR BOND COUNCIL WILL BE

[02:50:04]

[02:55:03]

ANIMAL TAGS, LICENSE FEES, EVERYTHING THAT THE CITY CHARGES IS IN THAT FEE SCHEDULE. WHEN

[03:00:06]

THEN, OF COURSE, THE SAME THREE ORDINANCES WILL HAVE THE FINAL READING ON SEPTEMBER 16TH. IN ADDITION, THE CITY MANAGER AND STAFF WILL BE UPDATING COUNCIL ON CITY'S STRATEGIC PLAN, AND WE WILL ALSO BE BRINGING FORWARD THE FOLLOWING POLICIES FOR YOUR ANNUAL REVIEW AND UPDATE INVESTMENT POLICY. IT IS REQUIRED BY STATE LAW THAT IT BE REVIEWED AND UPDATED ANNUALLY.

[03:05:04]

BUT, YOU KNOW, IT SHOWS THE CONSISTENCY OF THE CITY, BUT IT ALSO SHOULD TELL THE RESIDENTS THAT WE'VE GOT PEOPLE THAT HAVE BEEN HERE A WHILE THAT KNOW THE CITY. THEY'RE THAT CITY IS IN GOOD HANDS. BUT THEN YOU ADD THE NEW FRESH FACES. WE'RE REALLY MOVING FORWARD. SO IT'S REALLY EXCITING TO SEE. BUT I WANT TO SAY THANK YOU ALL TO YOU ALL AS WELL FOR Y'ALL'S LEADERSHIP. AND THANKS FOR ALL THE ALL THE WORK THAT Y'ALL HAVE DONE. THANK YOU. APPRECIATE IT. THANK YOU. DOES ANYONE HAVE ANY QUESTIONS, COUNCILMEMBER TOBIAS? NOT SO MUCH QUESTIONS AS FAR AS THAT.

EVERYTHING WAS PERFECT AS FAR AS THE PRESENTATION. SO I'VE GOT MY NOTES, BUT I COULD ALWAYS FOLLOW UP LATER AT A LATER TIME WITH WITH EVERYBODY, I GUESS MY DIRECTION OR OR HOW DOES COUNCIL FEEL AND CITY MANAGER FEEL WHEN WE'RE LOOKING AT THESE TWO MAJOR MEETINGS THAT WE'RE HAVING? DO WE HAVE A LOT TO COVER AND ALSO CITY COUNCIL BUSINESS AS WELL? AGAIN, MY SUGGESTION IF WE HAVE ANY EXECUTIVE ISSUES THAT WE HAVE, COULD WE LOOK AT HAVING A MEETING, LET'S SAY, LIKE WE DID BEFORE A SPECIAL MEETING ON THURSDAY? I DON'T KNOW HOW EVERYBODY ELSE FEELS BECAUSE WE'VE THIS IS A VERY CRUNCH PERIOD TIME RIGHT HERE. WE GOT PUBLIC HEARINGS. WE GOT FIRST AND SECOND READINGS. IF WE HAVE OTHER COUNCIL ITEMS THAT COME ABOUT, IT COULD MAKE FOR A LONG DAY FOR COUNCIL AND STAFF IF WE WERE TO SPREAD OUT THE EXECUTIVES LIKE FOR A FURTHER DATE THAT WEEK AND THEN ALSO FOR TUESDAY THE 16TH, IF WE HAVE ANY EXECUTIVE. DISCUSSIONS THAT THE CITY NEEDS TO BRING TO US, WE GIVE THEM THAT MUCH TIME AS WELL, BECAUSE I THINK WE'RE JUST IN THIS CRUNCH TIME AND MAYBE LOOKING AT A DIFFERENT WAY OF THESE MEETINGS, ESPECIALLY RIGHT NOW DURING THIS CRUNCH PERIOD. YEAH. BRIAN, DO YOU MIND LOOKING AT YOUR ANTICIPATED AGENDAS FOR THE NEXT COUPLE OF MEETINGS IN AND AROUND THESE WORKSHOPS AND JUST KIND OF SEE IF WE NEED TO PACE OUT? YES, SIR. I'LL BE GLAD TO DO THAT. AND I THINK THE INTENT WOULD BE AT EVERY FUTURE MEETING THAT YOU'D HAVE BETWEEN NOW AND SEPTEMBER 16TH, THAT WE WOULD ADD A WORK SESSION ITEM JUST FOR ANY QUESTIONS, ANY FOLLOW UP ITEMS THAT YOU HAVE. WE'LL PUT THOSE ON THERE. AND COUNCIL MEMBER TOBIAS IS WE JUST HAD OUR SPECIAL MEETING THURSDAY. I THINK WE'LL LOOK AT SCHEDULING ONE OF THOSE IN AUGUST AS WELL. MAYBE MAYBE AFTER THAT 19TH MEETING. THAT WAY WE COULD HAVE A INDIVIDUAL TIME WHERE ANY ADDITIONAL QUESTIONS? WE COULD GIVE YOU GUYS SOME MORE TIME TO DISCUSS IT. WE'D BE GLAD TO DO THAT. WE WANT TO MAKE SURE WE KNOW THAT IT'S COMPLEX. THERE'S A LOT OF DIFFERENT PIECES TO IT, AND YOU NEED TO HAVE PLENTY OF TIME TO DISCUSS THAT AS A COUNCIL. I THINK WHAT I WOULD SAY, TOO, IS IF THERE ARE QUESTIONS THAT THAT YOU DON'T HAVE YET, BUT YOU GET THOSE OVER THE NEXT FEW WEEKS, EMAIL THEM TO US. LET US PULL ALL THAT INFORMATION TOGETHER AND WE'LL SEND IT OUT NOT ONLY TO EACH OF YOU THAT ASK THE QUESTIONS, BUT TO THE ENTIRE COUNCIL SO EVERYBODY CAN GET THE SAME INFORMATION. WE'LL BE GLAD TO HAVE THOSE FOR YOU. SO MAYBE THAT'S A WAY, A PATH FORWARD. AND WE CAN CERTAINLY ALWAYS HAVE A SPECIAL MEETING IF YOU FEEL LIKE YOU NEED IT. BUT HOPEFULLY TODAY WE'VE WE'VE GOT 90 TO 95% OF THE THINGS THAT WERE IMPORTANT TO YOU. AND IT'S JUST ABOUT REFINING A FEW THINGS.

YEAH. THAT'S IT. I DON'T WANT TO TAKE TOO MUCH TIME BECAUSE I WANT THE CITY STAFF TO HEAD OUT TO THEIR FAMILIES AS WELL. BUT YES, BECAUSE IT LOOKS LIKE THIS IS A VERY HUGE BUDGET THAT WE HAVE. WE'VE GOT A LOT OF QUESTIONS. AND NOT ONLY THAT, THE CITY STAFF HAS OTHER PROJECTS THAT THEY GOT TO BRING TO US. SO IT'S A MATTER OF RESPECTING THEIR TIME AND THEIR EFFORT TO BE ABLE TO GIVE US THEIR INFORMATION AND THEIR INPUT THAT THEY NEED. SO WE CAN JUST LOOK AT THAT AND DECIDE FROM THERE. THANK YOU. YOU BET I YIELD. YEAH. I JUST WANT TO JUMP IN AND SAY, BRIAN, THIS WAS AND TO ALL THE STAFF AND ALL OUR EMPLOYEES, THIS WAS A VERY THOROUGH BUDGET THAT I THINK WE DID A VERY GOOD JOB OF, OF I'M, I'M GOING BACK TO APRIL WHERE WE

[03:10:06]