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NOTICE OF THE CITY OF SANTO CITY COMMISSION BUDGET, UH, WORKSHOP NUMBER ONE, JULY 30TH, 2024.
I'D LIKE TO WELCOME EVERYBODY.
RUTH, CAN WE HAVE ROLL CALL, PLEASE? YES, MAYOR.
MAYOR, UH, RA PRESENT, MAYOR
COMMISSIONER, UH, TOM GOODMAN, PRESENT.
COMMISSIONER DEBRA MORALES, PRESENT.
UM, PUBLIC COMMENTS? NONE, MAYOR.
WE GET PRESENTATIONS BY DON GONZALEZ.
GOOD EVENING, MAYOR AND COMMISSIONERS.
UH, MR. SANDOVAL FOR THE RECORD.
MY NAME IS DON GONZALEZ WITH OSA.
WE SERVE AS A CITY'S FINANCIAL ADVISOR, AND LEMME SEE IF I CAN GIVE THIS TO GREAT.
SO FOR THE RECORD, UM, WHAT WE HAVE THIS EVENING IS, IS JUST A BRIEFING, UH, PRESENTATION ON SOME OF THE, UH, MARKET CONDITIONS THAT WE'RE CURRENTLY EXPERIENCING, AS WELL AS A, A DEBT OVERVIEW OF THE CITY.
UH, THERE'S NO ACTION, UH, TONIGHT.
UM, WE, UH, HAVE HAD A, A GREAT OPPORTUNITY IN, IN WORKING WITH YOUR DIRECTOR OF FINANCE.
UH, ONE OF THE THINGS TO HIGHLIGHT, AND IT'S AT THE, UH, END OF THE PRESENTATION, I'M NOT GONNA GET INTO THAT, YOU CAN READ THAT AT YOUR LEISURE, IS, UH, THE CITY DID GET UPGRADED BY STANDARD IN FOURS TO AA MINUS.
AND, AND SO WHEN THEY DID THEIR, UH, LAST SURVEILLANCE, WHICH THEY TYPICALLY DO ABOUT ONCE EVERY TWO TO THREE YEARS, UH, THEY LOOKED AT THE, UM, THE MANAGEMENT, THE, THE, UH, DEBT OUTSTANDING, UH, THE DIFFERENT, EVERYTHING FROM CASH BALANCES, FUND BALANCES, UH, ALL THE THINGS THAT THEY SEE THAT ARE CRITICAL, UH, ECONOMIC DEVELOPMENT THAT'S OCCURRING.
UH, THEY REALLY LOOK AT RATING AGENCIES LOOK AT, UH, AT GOVERNMENTAL ENTITIES WHEN THEY RATE THEM, UH, AS HAVING THINGS IN, IN ONE OF TWO BUCKETS.
THINGS THAT YOU CAN CONTROL AND THINGS THAT YOU CANNOT CONTROL.
AND THE THINGS THAT YOU CAN CONTROL AS A CITY ARE THE ONES THAT THEY'RE REALLY LOOKING AT, UH, IN A VERY, I DON'T WANNA SAY CRITICAL MANNER, BUT A CONSTRUCTIVE MANNER TO MAKE SURE THAT YOU'RE DOING WHAT YOU NEED TO DO FROM A, A MANAGEMENT AND OPERATIONS PERSPECTIVE.
AND, AND THE THINGS THAT ARE OUTSIDE OF YOUR CONTROL, SUCH AS WHAT'S HAPPENING WITH RESPECT TO INFLATION, UH, WHAT'S HAPPENING IN TERMS OF, UH, GROWTH, PROPERTY VALUES, SALES TAX REVENUES, ALL OF THOSE THINGS, UH, ARE NOT COMPLETELY WITHIN YOUR CONTROL.
UM, THEY LOOK AT THOSE ECONOMIC FACTORS AND THEN THEY'RE LOOKING AT HOW LONG THOSE THINGS THAT ARE OUTSIDE OF YOUR CONTROL, UM, MAY OR MAY NOT LAST, DEPENDING UPON WHETHER IT'S GOOD OR, OR NEGATIVE INFORMATION FOR THAT MATTER.
SO FEEL FREE TO, UH, STOP ME AND, AND ASK QUESTIONS AS WE GO ALONG.
UM, I AM WITH THE FIRM WITH ESRA AOSA.
WE'VE BEEN ABLE TO SERVE AS THE FINANCIAL ADVISOR TO THE CITY OF SAN BENITO FOR MANY YEARS.
AND, UM, I'M GONNA GO AHEAD AND GET INTO THIS PRESENTATION ON THIS FIRST SLIDE, GETTING INTO THE MARKET UPDATE.
UM, THIS IS AS OF THE END OF, OF LAST WEEK.
AND SO WHAT WE ARE SEEING, AND I'M GONNA JUMP DOWN TO THE BOTTOM RIGHT CORNER, UH, YOU SEE THAT TABLE AND, AND WHEN WE LOOK AT ISSUING DEBT, WE TYPICALLY LOOK AT MATURITIES THAT RANGE FROM ONE TO ABOUT 30 YEARS.
SO THAT'S WHAT'S ON THAT LEFT SIDE, YOU SEE ONE THROUGH 30, AND THEN YOU SEE THE MATURITIES BY YEAR 2025 OUT TO 2054.
AND THEN MMD STANDS FOR MUNICIPAL MARKET, UH, INDEX.
IT'S A DAILY INDEX THAT IS PUT OUT BY, UM, A ENTITY THAT TRACKS TAX EXEMPT NATURAL AAA RATED, UH, TAX EXEMPT ENTITIES AND, AND WHERE THEIR, UH, TRANSACTIONS ARE TYPICALLY COMING TO MARKET IN TERMS OF INTEREST RATES.
SO AS YOU CAN SEE IN YEAR 1, 20 25, UH, THAT INTEREST RATE IS 2.88%.
AND IF YOU LOOK AT 10 YEARS OUT, 2034, IT'S 2.7800000000000002%.
SO WHEN WE LOOK AT THAT, WHAT THAT TELLS US IS SHORT-TERM INTEREST RATES
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ARE ACTUALLY HIGHER THAN WHAT MID TO LONG-TERM INTEREST RATES ARE.YOU DON'T SEE THAT 2 88 COMING UP UNTIL THE YEAR 13, 20 37.
AND SO WHAT WE CALL THAT IS AN INVERTED YIELD CURVE.
AND IF YOU'VE BEEN KEEPING UP WITH, YOU KNOW, WHAT'S BEEN HAPPENING FROM THE FEDERAL OPEN MARKET COMMITTEE, UH, THEY'RE ACTUALLY MEETING TODAY AND TOMORROW.
UH, MOST PEOPLE THINK THAT THEY'RE NOT GONNA TAKE ANY ACTION TO CHANGE THEIR INTEREST RATE OUTLOOK, UH, AT THE END OF, UH, TOMORROW'S MEETING, WHICH I BELIEVE WILL BE ABOUT 2:00 PM AND SO, UH, THERE'S AN EXPECTATION THAT THERE MAY BE SOME DECREASES COMING IN THE FUTURE, UH, POSSIBLY AT THE SEPTEMBER MEETING, WHICH I BELIEVE IS GONNA COME ON SEPTEMBER THE 17TH, AND THEN POSSIBLY AGAIN IN EITHER, UH, NOVEMBER OR DECEMBER.
UH, BECAUSE THEY TYPICALLY DON'T TAKE ANY ACTION RIGHT BEFORE A PRESIDENTIAL ELECTION.
SO MOST PEOPLE THINK OCTOBER'S PROBABLY NOT, THEY'RE NOT GONNA DO ANYTHING SINCE THE ELECTIONS IN EARLY NOVEMBER AND THEN MAYBE DO SOMETHING AFTER THE ELECTION IN NOVEMBER OR DECEMBER.
SO GIVEN THAT LITTLE BIT OF INFORMATION, WHEN WE LOOK AT WHAT'S HAPPENING WITH THAT INVERTED YIELD CURVE, UH, THERE'S, YOU KNOW, ENTITY THAT WOULD BE LOOKING TO GO OUT AND BORROW WOULD SAY, WELL, IT PROBABLY MAKES MORE SENSE FOR ME TO PUT MOST OF MY DEBT OUT, MAYBE STARTING AT ABOUT, UH, YEAR FIVE, WHERE YOU CAN SEE THE INTEREST RATES ARE LOWER AT 2.77 THAN THE 2.88 AND NOT BORROW, UH, IN THE SHORT TERM.
AND, AND, AND WE'RE ACTUALLY SEEING A NUMBER OF ENTITIES THAT ARE DOING THAT, UH, SO THAT THEY MINIMIZE THE, THE, UH, AMOUNT OF INTEREST THAT THEY'RE PAYING IN THE SHORT TERM.
THE NEXT COLUMN OVER SAYS CHANGE OVER MONTH.
AND SO THAT TELLS YOU WHAT INTEREST INTEREST RATES HAVE DONE FROM ABOUT A MONTH AGO.
AND SO INTEREST RATES HAVE ACTUALLY GONE DOWN COMPARED TO WHERE THEY WERE BACK IN JUNE.
AND A BIG PART OF THAT, AS YOU WOULD IMAGINE, IS THE FACT THAT WE ARE ACTUALLY SEEING INFLATION SLOW DOWN.
WE'RE STARTING TO SEE THE ECONOMY SLOW DOWN.
WE'RE SEEING ALL THE THINGS THAT THE FED WANTED TO DO WHEN THEY RAISED RATES AS MUCH AS THEY DID LAST YEAR TO SLOW THINGS DOWN SO THAT WE'RE FINALLY STARTING TO SEE THAT TAKE EFFECT.
IT TOOK SEVERAL MONTHS BEFORE WE WE'RE ACTUALLY SEEING IT, BUT WE'RE, WE'RE FINALLY SEEING IT.
AND, AND SO THAT'S WHAT THOSE, THOSE WOULD BE THE, THE THREE MAIN COLUMNS I'D, I'D BE FOCUSING ON RIGHT THERE.
UH, ANY QUESTIONS BEFORE I MOVE ON? AND THIS NEXT SLIDE, THIS IS ONE THAT, THAT I, I REALLY LIKE TO, TO SHARE WITH CLIENTS THAT WE WORK WITH.
THE BLUE BARS REPRESENT THE HIGH AND LOW OVER A PERIOD THAT GOES BACK TO THE YEAR 2000 IN TERMS OF HIGH AND LOW INTEREST RATES FOR THAT FIRST MATURITY.
SO REMEMBER WHAT WE JUST SAW ON THE PREVIOUS PAGE, THE FIRST MATURITY BEING 2025, WHAT THEY'RE SAYING IS, IF WE WERE TO GO BACK TO THE YEAR 2000, AND YOU WERE TO DO A 30 YEAR DEAL AT THAT POINT IN TIME, THE FIRST YEAR WOULD BE 2001 AND 2002.
AND SO YOU CAN SEE FROM THAT POINT ALL THE WAY TO NOW WHAT THE HIGH AND THE LOW IS FOR THE FIRST AND ALL THE WAY THROUGH THE 30TH MATURITY.
THE BLUE BOX ON THAT BAR REPRESENTS THE AVERAGE SINCE 2000.
AND THE GREEN DIAMOND REPRESENTS WHERE THE NATURAL AAA MMD IS CURRENTLY.
SO AS YOU CAN SEE, THE AVERAGE IS BELOW WHERE INTEREST RATES ARE, WHICH IS, AGAIN, WHAT THE FED WAS TRYING TO DO, IS THEY RAISE SHORT TERM INTEREST RATES.
SO RIGHT NOW IT'S, IT'S HIGHER TO BORROW SHORT TERM THAN IN THE LONG TERM.
AND THEN YOU CAN SEE WHEN YOU GET TO ABOUT THE NINTH MATURITY, UH, THEY'RE ALMOST ON TOP OF EACH OTHER.
AND THEN YEAR 10, THEY'RE PRETTY MUCH RIGHT ON TOP OF EACH OTHER.
AND, AND THEN IT'S JUST BELOW THE AVERAGE BETWEEN YEARS, ABOUT 10 OUT TO YEARS 30.
UM, SO IT'S A SHORT TERM THAT, YOU KNOW, IS COSTING THE MOST AMOUNT OF MONEY RIGHT NOW.
THIS IS A, A LOOK AT A 30 YEAR AAA, UH, GOES BACK TO AGAIN, THE YEAR 2000, GOING OUT 30 YEARS, JUST LIKE WE, WE'VE BEEN LOOKING AT.
AND YOU CAN SEE WHERE INTEREST RATES HAVE GONE UP AND GONE DOWN.
UH, YOU CAN SEE DURING THE, THE PANDEMIC, UH, THE LATTER PART OF 2019 ALL THE WAY THROUGH ABOUT 2022 INTEREST RATES STAYED VERY LOW, AND THEN THEY STARTED TO GO UP AS THE FED TOOK ACTION.
THE LATTER PART OF 2022 SIGNIFICANTLY WENT UP AT THE END OF 22 INTO 23, AND THEN CONTINUED ALL THE WAY INTO 24.
AND THEN WE'VE REALLY SEEN ABOUT THE LAST, UH, PROBABLY ABOUT FOUR OR FIVE MONTHS FOR RATES HAVE STARTED TO COME DOWN A LITTLE BIT.
NOW THIS IS GONNA BE A SLIDE THAT'S MORE SPECIFIC TO THE CITY OF SAN BENITO.
THIS IS THE CITY'S GENERAL OBLIGATION DEBT THAT'S OUTSTANDING.
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THIS SLIDE FOUR, UH, WHAT WE WANT YOU TO BE AWARE OF IS THE, THE DEBT THAT THE LAST DEBT THAT WAS ISSUED WAS A, UH, FUNDING BONDS THAT WE DID IN 2022.UH, THERE'S ABOUT A LITTLE OVER $2 MILLION OF THAT THAT'S STILL OUTSTANDING.
UH, THERE'S SOME BONDS FROM 2020, ABOUT 7 MILLION TO 50.
UH, ANOTHER REFUNDING THAT WAS DONE IN 2020.
THERE'S ABOUT 5.3 MILLION OUTSTANDING.
AND, AND THEN ABOUT 7 85 FROM 2015.
AND THEN 2013 IS ABOUT 220,000.
SO, UH, LITTLE OVER 15 AND A HALF MILLION OF DEBT THAT'S CURRENTLY OUTSTANDING THAT HAS A LEGAL PLEDGE OF THE AVALOR TAX, ALTHOUGH NOT VERY MUCH OF IT'S ACTUALLY PAID WITH THE AVALOR TAXES PAID FROM OTHER SOURCES OF THE CITY.
UH, IF YOU LOOK AT THE, UH, CALLABLE COUPONS COLUMN, WHICH IS, UH, ABOUT THREE OR FOUR COLUMNS OVER, YOU'LL SEE THAT, UH, A LOT OF THOSE INTEREST RATES ARE, WELL, ALL OF 'EM ARE, ARE BELOW 5%.
AND, AND SO ONE OF THE THINGS THAT, THAT WE DID WAS TAKE ADVANTAGE OF WHEN, REMEMBER THE GRAPH THAT I SHOWED YOU A MO A MOMENT AGO WHEN INTEREST RATES WERE REALLY LOW, WE REFINANCED THE CITY'S DEBT TO A VERY LOW INTEREST RATE.
SO THE, THE DEBT THAT THE CITY HAS OUTSTANDING IS ACTUALLY VERY LOW RIGHT NOW.
UM, IN FACT, THERE'S REALLY NOT ANYTHING THAT WE COULD REFINANCE FOR SAVINGS BECAUSE WE, WE PRETTY MUCH HAVE ALREADY DONE ALL THAT AND TAKEN ADVANTAGE OF THE OPPORTUNITIES THAT THE CITY'S HAD.
SO YOU'RE WELL POSITIONED FROM THAT PERSPECTIVE.
THE, UH, TOP RIGHT SIDE, UH, THERE'S ANOTHER TABLE SAYS HISTORICAL TAV THAT'S TAXABLE ASSESSED VALUATION.
AND, AND SO YOU CAN SEE THAT THE VALUATIONS, UH, IN 2021 WERE JUST UNDER A BILLION DOLLARS AT POINT AT ABOUT 974 MILLION 2022.
THAT WENT UP TO OVER 1,000,000,020 23, UH, ABOUT 1,000,000,075.
AND THEN A BIG JUMP, UH, LAST YEAR AT THIS TIME WENT UP TO $1.3 BILLION.
UM, WHAT WE ARE POINTING OUT TO, TO CLIENTS, AND WE ACTUALLY JUST RECEIVED YOUR, UH, CERTIFIED TAXABLE VALUES, AND, UH, YOU DON'T HAVE ANOTHER BIG JUMP LIKE THAT.
AND IN FACT, IN OTHER PARTS OF THE STATE, WHAT WE SAW WAS THE BIG JUMPS THAT YOU EXPERIENCED LAST YEAR.
UM, IN SOME CITIES, THE VALUES ARE ACTUALLY STARTING TO GO DOWN.
SO FROM A PLANNING PERSPECTIVE, YOU KNOW, WE WOULD SUGGEST TO YOU, YOU'RE ALREADY SEEING IT THIS YEAR, YOU JUST RECEIVED YOUR CERTIFIED VALUE CER UH, TAXABLE VALUE LAST WEEK, UH, WENT UP A LITTLE LESS THAN 3%.
UH, THE YEAR BEFORE, UH, THEY WERE UP BY, I BELIEVE, ABOUT 20, I WANNA SAY IT WAS LIKE 23%.
SO FROM A PLANNING PERSPECTIVE, UM, PROBABLY, YOU KNOW, BE CAUTIOUS IN TERMS OF DON'T ANTICIPATE BIG INCREASES IN ASSESS VALUES GOING FORWARD.
UH, RIGHT BELOW THAT, YOU SEE THE HISTORICAL TAX RATES, UH, FROM 2021 TO 2024.
UH, TAX RATES COME DOWN FROM ABOUT 0.7281 TO UH, 0.7081.
AND THEN IN THAT, UH, TOP RIGHT HAND CORNER, YOU CAN SEE THE RATINGS THAT ARE OUTSTANDING.
MOODY'S AT A A ONE S AND P AT AA MINUS AND FITCH AT A DOUBLE A.
SO, UH, CLEARLY SPLIT RATINGS IS WHAT WE CALL THAT.
UM, THE S AND P RATING IS ONE THAT WE CONSIDER VERY IMPORTANT BECAUSE IF YOU WERE TO ISSUE DEBT, THE RATING THAT WE WOULD PROBABLY SEEK FIRST WOULD BE THE ONE FROM STANDARD EMPLOYERS.
AND THE REASON FOR THAT IS WE CAN OBTAIN BOND INSURANCE THAT CAN ACTUALLY GET YOU, WE PAY FOR THE BOND INSURANCE, BUT IT CAN GET YOU TO A DOUBLE A, SO A SLIGHTLY HIGHER, UH, RATING, WHICH MEANS LOWER COST OF INTEREST THAT THE CITY WOULD BE PAYING.
AND, AND SO THE HIGHER YOUR UNDERLYING CREDIT RATING, THE LOWER THE COST OF THE BOND INSURANCE.
SO THAT'S, THAT'S A VERY GOOD THING.
AND STANDARD, AND POORS IS THE ONLY RATING AGENCY THAT ACTUALLY, UH, THE TWO BOND INSURANCE COMPANIES, THERE'S TWO OF 'EM, ASSURED GUARANTEE AND BILL AMERICAN MUTUAL, UH, AND THEY ONLY USE S AND P.
SO IF WE WANTED TO GET BOND INSURANCE, WE'D HAVE TO USE STANDARD EMPLOYER.
SO GETTING THAT RATING UPGRADE IS VERY IMPORTANT.
UM, THE BOTTOM GRAPH, AND THIS IS ONE THAT, THAT YOUR, UH, DIRECTOR OF FINANCE HAS PROBABLY ALREADY POINTED OUT TO YOU.
UM, 2025, THE DEBT SERVICE IS GONNA BE GOING DOWN FROM A LITTLE OVER 3 MILLION TO ABOUT, UH, 2.6, A LITTLE LESS THAN 2.6 MILLION, AND THEN IT GOES DOWN AGAIN IN 2026, DOWN AGAIN IN 27 AND 28 AND 29 IS LEVEL AND 30, 31 LEVEL, AND THEN BACK DOWN AGAIN IN 32.
UH, SO YOU HAVE SOME CAPACITY COMING UP THAT THE
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CITY COULD LOOK TO ISSUE DEBT.UM, I WOULD SUGGEST THAT, YOU KNOW, WHEN YOU LOOK AT IT, WE WOULD LOOK TO TRY TO DO SOMETHING TO WHERE YOU WOULD NOT HAVE TO HAVE A TAX RATE INCREASE.
UH, HOPEFULLY HAVE, UM, NO MORE OF A RATE INCREASE ON THE UTILITY SIDE THAN WHAT YOU PROBABLY ARE ALREADY CONTEMPLATING.
AND, AND SO, YOU KNOW, IF YOU WANT TO THINK ABOUT DOING SOME INFRASTRUCTURE, UM, LET'S SAY, YOU KNOW, SOMETIME BETWEEN MARCH AND SAY JUNE, JULY OF NEXT YEAR, UH, THE TIMING COULD BE RIGHT.
WE SEE INTEREST RATES STARTING TO COME BACK DOWN, UM, AND YOU'RE ALREADY IN A POSITION TO TAKE ADVANTAGE OF THAT AND NOT HAVE TO, UH, INCREASE THE TAX RATE.
SO JUST PUT THOSE THOUGHTS THERE FOR YOU TO CONSIDER.
THIS FOLLOWING PAGE FIVE IS A CALLABLE COUPON SUMMARY.
AND AS I MENTIONED, UM, YOU DON'T REALLY HAVE A WHOLE LOT OF DEBT THAT IS GONNA BE, UH, BENEFITING FROM ANY KIND OF CALLS BECAUSE NONE OF IT IS, IS ABOVE 5%.
SO YOU HAVE A LITTLE BIT THAT'S CALLABLE NOW, AND THEN THE NEXT TIME IS GONNA BE 2028.
SO THAT'S WHEN WE'D PROBABLY BE LOOKING TO DO A REFINANCING.
BUT THAT DEBT IS OUTSTANDING AT AROUND 4%.
SO UNLESS WE WERE TO SEE RATES, YOU KNOW, GO DOWN AND STAY DOWN, YOU KNOW, SOMEWHERE AT THE, YOU KNOW, MAYBE THE END OF 2027, FIRST PART OF 2028, WOULD WE TAKE ADVANTAGE OF THAT? IF IT DOESN'T PRODUCE SAVINGS, YOU JUST LEAVE IT ALONE, WHICH IS WHAT WE'VE BEEN DOING WITH SOME OF YOUR OTHER DEBT.
UH, THE CITY DOES HAVE, UH, A SMALL AMOUNT OF WATER AND SEWER REVENUE BONDS.
THAT MEANS THEY'RE ONLY, UH, PAID FROM WATER AND SEWER UTILITY, UH, SYSTEM NET OPERATING, UH, REVENUES OF THE SYSTEM.
AGAIN, UH, WE COULDN'T GO OUT AND, AND BORROW EVEN AT A NATURAL AAA, UH, WE CAN'T GET TO THAT INTEREST RATE, SO THERE'S NO POINT IN LOOKING AT THAT, EVEN THOUGH YOU COULD, UH, CALL THEM AND, AND DO A REFUNDING.
IF WE TRIED TO DO A REFUNDING, WE'D LOSE MONEY.
I THINK WHEN WE WERE HERE IN 2022, WE POINTED THAT OUT TO THE CITY AND SAID, YOU KNOW, WE'D RECOMMEND CONTINUE PAYING BECAUSE YOU'VE GOT A VERY LOW INTEREST RATE AND IT WOULDN'T BENEFIT THE CITY TO, UH, CONSIDER THAT.
ON SLIDE SEVEN, THIS IS ONE OF THE THINGS THAT, THAT THE CITY HAS DONE, UH, GOING BACK, UH, PROBABLY ABOUT 20 YEARS NOW.
AND, AND THIS IS SOMETHING WHERE THE CITY CHOSE TO ISSUE SOME DEBT THAT'S PAID BY THE AVALOR TAX RATE.
SOME OF THAT'S PAID BY THE SALES TAX, SOME OF THAT'S PAID BY THE EDC, AND SOME OF THAT'S PAID BY WATER AND SEWER UTILITIES.
SO THAT'S WHY YOU SEE THOSE FOUR COLUMNS ACROSS THE TOP.
AND, UH, BELIEVE IT OR NOT, OVER THE PAST ABOUT 20, 25 YEARS, UM, THE DEBT SERVICE MAY CHANGE A LITTLE BIT AS, UH, THE CITY SEES FIT GIVEN WHERE THE REVENUES ARE COMING FROM.
SO IN YEARS WHERE SALES TAX MIGHT'VE BEEN VERY STRONG, MIGHT'VE PAID A LITTLE BIT MORE FROM THE SALES TAX, IF PROPERTY VALUES WERE DOWN AT THE TIME, THEY MIGHT HAVE PAID A LITTLE MORE FROM SALES TAX, A LITTLE LESS FROM THE TAX RATE, SO AS TO NOT INCREASE THE TAX RATE.
SO IT WAS A VERY GOOD MANAGEMENT TOOL IN TERMS OF MANAGING THE TAX RATE.
AND SO THAT'S WHY YOU SEE SO MANY DIFFERENT SOURCES.
A LOT OF TIMES PEOPLE WOULD SAY, WELL, IT'S GEO BONDS.
IF IT'S WATER AND SEWER, YOU PAY IT FROM THE WATER AND SEWER.
WELL, THE CITY SAID, LET'S, CAN WE GET A LITTLE CREATIVE HERE? AND SO THIS IS WHAT, WHAT WE SUGGESTED.
AND SO YOU'VE TAKEN ADVANTAGE OF DOING THAT.
AND IN DOING SO, YOU CAN SEE THAT, UM, YOU IN SOME YEARS, UH, I MEAN IN SOME DEBT, IN SOME OF THE BONDS THAT WERE ISSUED, NONE WAS PAID FROM THE TAX RATE.
VERY FIRST ONE, THE 2005, A HUNDRED PERCENT OF THAT IS BEING PAID FROM WATER AND SEWER.
UH, IF YOU GO TO 2013, YOU CAN SEE IT'S SPREAD ACROSS ALL FOUR, UH, GOSS, 31% SALES TAX, ABOUT 21%, EDC, ABOUT 10 POINT A HALF, AND WATER AND SEWER IS ABOUT 37.5%.
THEN THE BOTTOM HALF OF THAT TABLE, THEN YOU CAN SEE WHAT THOSE PERCENTAGES LOOK LIKE IN TERMS OF DOLLARS.
AND SO YOU GET AN IDEA AS TO HOW MUCH IN TERMS OF DOLLARS ARE BEING PAID, UH, FROM THOSE VARIOUS SOURCES.
UH, SO YOU HAVE AN IDEA OF WHAT THOSE PERCENTAGES TRANSLATE TO, UH, IN TERMS OF DOLLARS.
THIS NEXT SLIDE, UH, DUPIXENT NUMBERS, WHAT YOU WERE LOOKING AT EARLIER IN TERMS OF THE GRAPH WHERE YOU SAW THE DEBT SURFACE COMING DOWN.
AND I'M GONNA GO AHEAD AND POINT YOUR, UH, ATTENTION TO THE FOURTH COLUMN FROM THE LEFT THAT SAYS TOTAL DEBT SERVICE.
SO YOU SEE THAT 3 MILLION 588 6 38, THAT FIRST IN, IN NUMBER IN THE, UH, FOR 2024 FOR THE TOTAL DEBT SERVICE, THE, THE YEAR 2025, WHICH YOU'RE GOING INTO, UH, THE DEBT SERVICE DECREASES BY FROM SIX, UH, ROUGHLY 3,000,006 TO
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ABOUT, UH, 2,000,008.SO IT'S ABOUT $750,000 OF A DECREASE IN DEBT SERVICE.
AND THEN THERE'S ANOTHER DECREASE THE FOLLOWING YEAR IN 2026 TO 2,000,003, AND THEN 2,064,000 IN 27, AND THEN ANOTHER BIG DROP IN 2028 TO ABOUT 1,000,422.
WHAT THAT'S TELLING YOU IS YOUR PAYMENTS THAT YOU HAVE ON THE DEBT THAT'S OUTSTANDING IS COMING DOWN.
THAT'S WHERE YOU'RE GONNA GET THAT CAPACITY.
AND THEN YOU CAN SEE WHERE THAT CAPACITY IS BEING PAID FROM.
UH, IN TERMS OF THE PAYMENT SOURCES, AGAIN, LOOKING AT SALES TAX, EDC, WATER AND SEWER, AND THEN THE FAR RIGHT COLUMN IS WHAT'S BEING ACTUALLY PAID FROM THE TAX RATE.
AND IN EACH ONE OF THOSE, YOU CAN SEE THAT THE AMOUNT OF DEBT SERVICE IS COMING DOWN.
SO YOU'LL HAVE SOME CAPACITY IN, IN ALL OF THOSE AREAS, UH, ASSUMING THAT'S SOMETHING YOU'D LIKE TO TAKE ADVANTAGE OF GOING FORWARD.
NOW FOCUSING ON, ON WHAT THE ESTIMATED TAX RATE IMPACT IS.
ON THIS SLIDE NINE, I'D LIKE TO TURN YOUR ATTENTION TO COLUMN B AND COLUMN C.
UH, IF YOU LOOK AT 2024, THAT'S THE YEAR THAT WE'RE ABOUT TO BE ENDING HERE IN SEPTEMBER.
THE VALUE IS AT 1,000,000,022, AND THE GROWTH FROM THE PRIOR YEAR IS ABOUT 27.5%.
IF YOU LOOK DOWN ONE MORE ROAD TO 2025, THE CERTIFIED VALUES THE CITY JUST RECEIVED THE VALUES ONLY WENT UP BY 2.8%.
HUGE DECREASE FROM THE 27.5% WE HAD THE YEAR BEFORE.
FROM THE YEAR BEFORE THAT, IF I REMEMBER CORRECTLY, IT WAS STILL DOUBLE DIGITS AND, AND THEN ALMOST DOUBLE DIGITS, I THINK GOING BACK TO ABOUT 2022.
SO YOU'RE STILL SEEING SOME GROWTH, BUT IT'S NOT AT THE SAME BIG PACE THAT YOU HAD THESE LAST FEW YEARS.
SO FROM A PLANNING PERSPECTIVE, WE WOULD JUST SAY, YOU KNOW, BE AWARE, UH, LOOKS LIKE PROPERTY VALUES MAY, YOU KNOW, HAVE BEEN PEAKING OUT IN TERMS OF WHERE THE APPRAISAL DISTRICT IS APPRAISING, UH, VALUES.
SO YOU MAY NOT SEE, YOU KNOW, A DOUBLE DIGIT INCREASE IN PROPERTY VALUES GOING FORWARD.
SO YOU MAY NOT BE SEEING, YOU KNOW, THE KIND OF TAX RATE DECREASES THAT YOU'VE HAD, UM, BECAUSE THE VALUES AREN'T GONNA BE GOING UP AS MUCH, THEY MOVE IN OPPOSITE DIRECTIONS.
SO IF YOU GO OVER TO, UH, COLUMN E I'M SORRY, COLUMN F UH, FOR 2024, YOU'LL SEE 529,825.
IN 2025, IT GOES DOWN TO 385,000.
SO RIGHT THERE YOU'D BE LOOKING AT JUST UNDER ABOUT 3 CENTS OF A TAX RATE, UH, IF YOU WEREN'T TO BE ISSUING ANY DEBT.
SO JUST TO GIVE YOU A LITTLE BIT OF, OF INFORMATION, UH, FROM THAT PERSPECTIVE.
NOW, I KNOW YOU'RE STILL DOING SOME PLANNING, OBVIOUSLY BUDGET WORKSHOPS AND ALL THAT.
SO, UH, NONE OF THIS IS SET IN STONE.
THESE ARE ESTIMATES THAT WE'RE WORKING WITH AT THIS POINT, BUT, UH, YOU'VE GOT SOME CAPACITY THERE.
AND ONE OF THE THINGS THAT, UH, THE DIRECTOR OF FINANCE AND I WERE VISITING ABOUT, WAS IT THE, THE CITY HAS A GENERAL FUND AND AN ENTERPRISE FUND, WHICH IS THE UTILITY FUND.
AND WE WANTED TO TRY TO SET THIS UP IN A WAY THAT KIND OF MAKES SENSE BECAUSE, UM, GOVERNMENTAL ENTITIES SOMETIMES BELIEVE, WELL, YOU KNOW, IF THE GENERAL FUND'S DOING REALLY WELL AND UTILITY'S NOT DOING SOME WELL, WE'LL JUST TRANSFER FUNDS OVER AND VICE VERSA.
AND THERE'S SOME THINGS THAT YOU CAN DO AND SOME THINGS THAT YOU'RE RESTRICTED FROM DOING.
AND, AND ONE OF THE THINGS ON THE GENERAL FUND SIDE, IF YOU LOOK UP THERE, YOU HAVE WHAT WE CALL THE MAINTENANCE AND OPERATIONS, OR M AND O TAX RATE.
SO THAT PAYS FOR YOUR OPERATING EXPENSES OF YOUR GENERAL FUND.
SO A LOT OF YOUR, UH, BUDGET IS PAID OUTTA THAT M AND O TAX RATE.
EVERYTHING FROM POLICE AND FIRE TO ALL OF YOUR ADMINISTRATION.
UM, PRETTY MUCH EVERYTHING THAT TAKES TO OPERATE THE CITY THAT'S NOT RELATED TO THE UTILITY SYSTEM IS BEING PAID OUTTA THAT M AND O TAX RATE.
THE INS TAX RATE PAYS FOR LAWFULLY AUTHORIZED AND ISSUED DEBT.
SO ONE OF THE THINGS THAT, UH, YOU LOOK AT THE NOTE DOWN BELOW, YOU CAN TRANSFER FUNDS FROM THE M AND O OVER TO THE INS, BUT YOU CANNOT TRANSFER FUNDS FROM THE INS TAX RATE TO THE M AND O TAX RATE.
SO ANY FUNDS THAT THE CITY WERE TO COLLECT THAT, WHEN YOU SET THAT INS TAX RATE TO PAY DEBT HAS TO BE USED TO PAY DEBT.
IF YOU DO, PROBABLY YOUR DIRECTOR OF FINANCE, YOUR CITY MANAGER, THEY'RE GONNA GET IN TROUBLE WITH YOUR AUDITORS BECAUSE THAT'S SOMETHING THAT, THAT YOU CANNOT DO.
THAT'S RESTRICTED BY STATE LAW.
SO IT'S NOT A RULE THAT, YOU KNOW, WE CAME UP WITH OR YOUR AUDITORS CAME UP WITH OR ANYTHING LIKE THAT.
THAT'S STATE LAW INS IS EXCLUSIVELY TO PAY DEBT SERVICE.
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AND INTEREST ON THE ENTERPRISE FUND SIDE, THAT'S YOUR UTILITY SYSTEM, UH, THAT'S GONNA PAY ALL OF YOUR OPERATING EXPENSES OF YOUR UTILITY SYSTEM.SO ALL YOUR PERSONNEL, CHEMICALS, ELECTRICITY, EVERYTHING TO RUN YOUR WATER AND SEWER SYSTEM, UH, IS RUN OFF OF, OFF OF THAT UTILITY SYSTEM.
AND THEN WHAT'S LEFT AFTER THAT IS THEN USED TO PAY ANY DEBT THAT YOU HAVE OUTSTANDING ON THE UTILITY SYSTEM SIDE.
SO, FOR EXAMPLE, YOU DO HAVE A LITTLE BIT OF REVENUE BONDS OUTSTANDING, WE MENTIONED THAT EARLIER, ABOUT $290,000.
SO YOU CAN USE THE NET REVENUES FROM THE UTILITY SYSTEM TO PAY THAT DEBT ON THE 290,000.
AND THEN THERE'S DEBT THAT YOU SAW EARLIER THAT HAS A TAX PLEDGE OF THE CITY THAT'S ACTUALLY BEING PAID PRIMARILY FROM WATER AND SEWER.
SO YOU CAN TRANSFER THOSE FUNDS TO THE INS TAX RATE AND PAY DEBT SERVICE FROM THERE.
SO THAT YOU CAN DO, YOU JUST CAN'T GO THE OTHER WAY FROM, SORRY, FROM THE UTILITY SYSTEM, I MEAN FROM THE INS TAX RATE OVER TO THE UTILITY SYSTEM.
UH, ONE THING I WOULD JUST NOTE ON THE BOTTOM RIGHT SIDE IS TYPICALLY IF YOU'RE TRANSFERRING MONEY FROM THE UTILITY SYSTEM OVER TO THE, UH, GENERAL FUND, TYPICALLY ABOUT 15% IS ABOUT THE MAX THAT RATING AGENCIES WOULD LIKE TO SEE.
UM, AT, AT TIMES WE'VE SEEN SOME GOVERNMENTAL ENTITIES THAT TRY TO TRANSFER 20 TO 25% 'CAUSE THEY DON'T WANNA, THE, THE CITY DOESN'T WANNA RAISE THE TAX RATE AND THE RATING AGENCY IS FROWNED UPON THAT THEY BELIEVE FROM THEIR PERSPECTIVE ABOUT 15%.
YOU KNOW, 'CAUSE YOU HAVE A CITY MANAGER, DIRECTOR OF FINANCE, DIFFERENT PERSONNEL THAT WOULD BE, YOU KNOW, WORKING BOTH IN THE CAPACITY OF THE UTILITY SYSTEM AND THE GENERAL FUND.
IT'S ABOUT, YOU KNOW, A GOOD, UH, NUMBER IF YOU'RE GONNA BE LOOKING TO TRANSFER FUNDS OVER.
ANY QUESTIONS ON, ON ANY OF THIS? THEN, UH, AS WE PRETTY MUCH FINISH UP, THIS IS THE, THE LAST RATING REPORT, UH, THAT STANDARD IMPORTS, UH, PRESENTED, UH, WHEN THEY, UH, THEY DID THEIR SURVEILLANCE AND, AND THAT WAS DONE IN AUGUST OF 2023.
UM, I'M NOT GONNA READ THIS TO YOU, BUT I THINK THE, THE MAIN POINTS THAT THEY MAKE IS, UM, THE, THE CITY IS STILL EXPERIENCING, UM, A LOT OF GROWTH AT THAT TIME.
UM, BUT THEY WERE KIND OF HINTING THAT THAT GROWTH MAY NOT NECESSARILY CONTINUE.
AND WE'RE ACTUALLY SEEING THAT NOW.
UM, SO TO KIND OF BE CAUTIOUS, YOU KNOW, AS, AS THE CITY PROCEEDS, AND SO LONG AS YOU CAN CONTROL THE THINGS THAT YOU CAN CONTROL FROM A MANAGEMENT AND SPENDING PERSPECTIVE, UM, YOU KNOW, THEY, UH, THEY DID THE, THE UPGRADE TO THE AA MINUS, AND THEN YOU, THEY ALSO MENTIONED, YOU KNOW, WHAT COULD CAUSE, UH, THE RATING TO GO DOWN.
AND, AND THAT WOULD BE, YOU KNOW, IF FOR SOME REASON THE CITY SAID, WELL, YOU KNOW, WE WANT TO START SPENDING, YOU KNOW, MORE MONEY THAT WE'LL TAKE IN, IN THE BUDGET, UH, YOU KNOW, THOSE TYPES OF THINGS, DRAWING DOWN FUND BALANCES, UH, DRAWING DOWN ON CASH RESERVES.
ONE OF THE THINGS THAT WE, WE SAY TO CLIENTS, ESPECIALLY WHEN YOU GET INTO THAT AA CATEGORY, IS, UH, CONGRATULATIONS.
YOU GOT THE UPGRADE AND NOW YOU'VE GOT GOLDEN HANDCUFFS ON YOU BECAUSE THEY'RE GOING TO BE COMPARING YOU TO OTHER AA RATED GOVERNMENTAL ENTITIES, CITIES, COUNTIES, SCHOOL DISTRICTS THROUGHOUT THE UNITED STATES.
AND AS AA RATED ENTITY, THE EXPECTATION IS EVERY YEAR YOU'RE GONNA BE INCREASING YOUR FUND BALANCE, INCREASING YOUR CASH BALANCE, NOT DRAWING IT DOWN.
SO IF YOU WERE TO, YOU KNOW, START TO DRAW DOWN FUND BALANCE, DRAW DOWN THE CASH, AND YOU DON'T HAVE A PLAN TO RESTORE IT, LIKE WITHIN A YEAR OR TWO, NOT LIKE OVER 10 YEARS, BUT IN A VERY SHORT PERIOD OF TIME, UM, THEY DO SURVEILLANCE, THEY WILL, YOU KNOW, I'M NOT GONNA SAY THEY'RE GONNA COME IN AND IMMEDIATELY DOWNGRADE THE CITY, UH, BUT WHAT THEY TYPICALLY DO IS THEY'LL PUT YOU ON WHAT THEY CALL A CREDIT WATCH.
AND, AND SO THEY'RE TELLING YOU, WE'RE WATCHING AND WE'RE GONNA SEE WHAT YOU DO.
UM, AND IF YOU PUT THE MONEY BACK WITHIN, YOU KNOW, 12 TO 24 MONTHS, YOU KNOW, THEY PROBABLY WON'T DOWNGRADE THE CITY IF, UH, THEY DON'T SEE MONEY BEING PUT BACK AND THEY WOULDN'T SEE IT LIKE IN A LINE ITEM IN THE BUDGET.
AND WE ACTUALLY HAVE A CLIENT THAT WE'RE WORKING WITH RIGHT NOW, AND, AND THEY WANT TO DRAW DOWN, UH, A LITTLE BIT OF MONEY IN THEIR FUND BALANCE.
AND I SAID, OKAY, WE NEED TO TELL THE RATING AGENCY WE'RE GONNA DO IT, AND WE NEED TO TELL THE RATING AGENCY THAT YOU'RE GONNA PAY IT BACK IN 24 MONTHS.
AND YOU'RE GONNA HAVE A LINE ITEM IN THE BUDGET THAT SAYS, THIS IS FOR RESTORING THE FUND, BALANCE THE CASH.
[00:30:01]
ACTUALLY A LINE ITEM IN THE BUDGET.AND, AND SO THEY'RE DOING THAT.
AND, UH, AND, AND SO WE'RE COMMUNICATING THAT TO THE RATING AGENCIES.
SO THE TRANSPARENCY IS ONE OF THE THINGS THAT THE RATING AGENCIES LOOK FOR.
AND, AND SO I THINK, UH, SAN BENITO'S BEEN DOING AN EXCELLENT JOB OF ALL OF THOSE THINGS AND, AND TO BE CONGRATULATED AND HAPPY TO BE HERE THIS EVENING AND, AND SHARE THIS INFORMATION.
UM, MAYBE A LITTLE BIT MORE DETAIL THAN WHAT YOU LIKE, BUT I KNOW, UM, A COUPLE OF YOU MAY NOT HAVE HAD THE CHANCE TO HEAR THIS MUCH DETAIL, UH, IN A WHILE.
SO THOUGHT WE'D GO AHEAD AND, AND JUST BRING THIS BRIEFING TO YOU AND HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.
THANK YOU VERY MUCH FOR BEING HERE.
THE, UM, UM, HOW OFTEN DO YOU DO THESE UPDATES? FOR US, IT, UH, IT KIND OF DEPENDS.
I I WOULD SAY ALMOST ANNUALLY, UH, IF, IF THERE'S A DEBT ISSUANCE, UH, THEN WE WOULD PROBABLY LOOK TO DO IT.
UM, I THINK, UH, SHORTLY AFTER, UH, THE CITY MANAGER WAS, UH, ENGAGED, WE MET WITH HIM AND, AND I KNOW THERE WAS A LOT OF THINGS THAT WERE HAPPENING.
UM, SO I DON'T THINK WE DID ONE, UH, LAST YEAR, UH, BUT WANTED TO MAKE SURE THAT WE, YOU BROUGHT THIS, YOU KNOW, TO YOUR ATTENTION.
AND, AND THE MAIN REASON I WOULD SAY NOW IS PROBABLY A LITTLE BIT MORE OPPORTUNISTIC FOR THE CITY FROM A BUDGETING PERSPECTIVE, BECAUSE IF YOU, UH, LOOK AT THE, LIKE I SAID, THE DEBT SERVICE IS COMING DOWN.
SO, UH, FROM 22 TO 23, UM, THE DEBT SERVICE WAS PRETTY MUCH LEVEL.
AND SO THERE REALLY WASN'T ANY OPPORTUNITY THERE FOR YOU TO TAKE ADVANTAGE OF ANYTHING.
PLUS INTEREST RATES WERE QUITE A BIT HIGHER.
AND, AND SO, UM, YOU KNOW, DEBT'S ONE OF THOSE FOUR LETTER WORDS THAT A LOT OF PEOPLE, YOU KNOW, REALLY DON'T LIKE TO TALK ABOUT, BUT ESPECIALLY DON'T WANT TO HEAR ABOUT IT WHEN INTEREST RATES ARE HIGHER AND, AND YOU'RE IN A, UH, IN A LITTLE BIT TOUGHER ECONOMIC ENVIRONMENT.
UH, NOW I THINK PEOPLE ARE STARTING TO THINK ABOUT, WELL, IF RATES ARE GONNA BE COMING DOWN SOMETIME IN THE NEXT, YOU KNOW, SIX MONTHS OR SO, THEN I PROBABLY WANNA START THINKING ABOUT WHAT I CAN DO.
AND IN SANTO'S CASE, YOU HAVE DEBT SERVICE THAT'S ALSO COMING DOWN, SO YOU COULD LOOK AT ISSUING SOME DEBT.
IN FACT, WE, WE DID RUN SOME NUMBERS AND WE THINK THAT YOU COULD PROBABLY ISSUE, UH, SOMEWHERE IN THE NEIGHBORHOOD OF ABOUT, I WOULD SAY EIGHT TO $10 MILLION, DEPENDING UPON HOW IT'S STRUCTURED, UH, WITHOUT ANY KIND OF A INCREASE ON UTILITY RATES.
IF IT WAS FOR UTILITY SYSTEM IMPROVEMENTS.
UM, IF YOU WERE TO DO IT ON THE TAX RATE, UH, THE CAPACITY, BECAUSE IT'S THREE PENNIES, UH, DOESN'T GET YOU A WHOLE LOT OF MONEY.
UH, YOU MIGHT BE LOOKING AT, YOU KNOW, A FEW MILLION DOLLARS THERE IN TERMS OF CAPACITY.
UM, SO JUST MAINLY JUST TO GET YOU THINKING ABOUT IT, NOT LOOKING FOR YOU TO DO ANYTHING NECESSARILY.
UM, BUT IF IT'S SOMETHING THAT YOU WANT TO LOOK AT IN SIX TO NINE MONTHS FROM NOW, YEAH.
UH, YOU, IF WE DON'T LET YOU KNOW NOW, IT'S KIND OF HARD TO PLAN.
WE TELL YOU IN MARCH, HEY, YOU'VE GOT AN OPPORTUNITY AND YOU MAY WANT TO DO SOMETHING IN THE NEXT 90 DAYS.
UH, PART OF THE REASON I ASK IS BECAUSE I I, I'M NOT ONE THAT HAS, UH, HOW DO I SAY THIS CAREFULLY? THE, UH, I THINK SOME OF THE ECONOMIC UNCERTAINTY IN OUR COUNTRY RIGHT NOW HAS A, I'M, I'M LOOKING AT YOUR 30 YEAR PROJECTIONS FOR, FOR INTEREST RATES.
I'M GOING, OKAY, THAT'S A REAL MAGIC BALL RIGHT THERE WITH SOME OF THAT.
AND SO I'M JUST KIND OF CURIOUS.
AND IF WE WERE TO DO ANYTHING, YEAH, WE WOULD NEED ANOTHER ANALYSIS LIKE THIS IN ORDER TO EVEN CONSIDER THAT.
AND PROBABLY THE TIME TO DO THAT MIGHT BE, LIKE YOU SAY, SIX TO NINE MONTHS FROM NOW, UH, IF WE'RE, IF WE'RE GONNA DO ANYTHING AT ALL.
RIGHT? SO THANK YOU FOR THIS AND, AND THERE'S NO PRESSURE TO DO ANYTHING.
WE JUST, A LOT OF TIMES, YOU KNOW, CLIENTS THAT WE WORK WITH, THEY'RE LIKE, YOU KNOW, IF WE CAN HAVE A LITTLE LEAD TIME, IT'S HELPFUL, UH, AND KIND OF GIVE US AN IDEA AS TO HOW MUCH WE MIGHT BE LOOKING THAT WE COULD DO IF WE DON'T WANT TO HAVE ANY KIND OF RATE INCREASE, THINGS OF THAT NATURE.
AND, AND I KNOW MAYOR, WE GO BACK MANY YEARS NOW.
YOU KNOW, THINKING ABOUT, YOU KNOW, WATER AND SEWER IMPROVEMENTS I KNOW HAS BEEN SOMETHING THAT, THAT YOU'VE BEEN, UH, VERY MUCH INTERESTED IN, IN WANTING TO STAY ON TOP OF.
'CAUSE YOU KNOW, YOU START DOING WATER AND SEWER IMPROVEMENTS, THE NEXT THING YOU KNOW, YOU'RE IN THE STREETS, YOU'RE INTO DRAINAGE, YOU KNOW, AND THOSE PROJECTS, A A SMALL PROJECT CAN TURN INTO A BIG PROJECT PRETTY QUICK.
'CAUSE YOU GOTTA TEAR UP THE STREETS TO GET TO THE, ALL THE WATER AND SEWER LINES.
SO IT IS, ARE YOU ON A RETAINER WITH THIS AS FAR AS THE CITY'S CONCERNED OR SOME KIND OF FINANCIAL? WE, WE ACTUALLY, UH, ONLY GET PAID WHEN THERE'S A DEBT ISSUANCE.
SO, UH, YEAH, HAPPY TO COME DOWN AND, AND MEET WITH YOU ALL.
UH, A LOT OF TIMES WE GET, WE'VE BEEN CALLED DOWN TO,
[00:35:01]
UH, DO A WORKSHOP SPECIFICALLY ON DEBT, YOU KNOW, AND TALK ABOUT A CAPITAL IMPROVEMENT PLAN.I KNOW, MAYOR, WE'VE, WE'VE DONE THOSE A FEW TIMES, YOU KNOW, IN, IN YOUR, UH, TENURE.
AND SO, UM, YOU KNOW, THE CITY MANAGER, DIRECTOR OF FINANCE WERE TO SAY, YOU KNOW, WE'VE GOT, YOU KNOW, THIS MUCH IN CAPITAL IMPROVEMENTS THAT WE ARE LOOKING AT FOR THE FUTURE OF THE CITY.
UH, WE'VE ALREADY GONE THROUGH THE PROCESS OF PRIORITIZING THOSE.
UH, THEY MAY HAVE ALREADY GONE THROUGH ALL THAT, YOU KNOW, WITH YOU AS A CITY COMMISSION.
AND NOW WE WANT TO LOOK AT, YOU KNOW, IF WE WERE GONNA ISSUE DEBT, WHEN, HOW MUCH, HOW MUCH WOULD IT COST? WHAT DO WE NEED TO DO FROM A PLANNING PERSPECTIVE ON WATER AND SEWER RATES OR THE TAX RATE, THOSE TYPES OF THINGS.
COMMISSIONER, ANY OTHER QUESTIONS? NONE.
I JUST WANNA SAY THANK YOU, DON, FOR COMING BY.
PLENTY OF INFORMATION AND DETAIL, AND I THINK IT WAS JUST RIGHT.
IT GIVES US A GOOD, UH, YOU KNOW, I HAD ASKED FOR THIS BECAUSE I WANTED, WE'RE IN THE BUDGET PROCESS.
WE HAVE SOME NEW COMMISSIONERS, UH, WE HAVE A NEW TEAM, WE HAVE A NEW, UH, ADMINISTRATION.
AND I WANT EVERYBODY TO BE ON THE SAME PAGE AND KIND OF SEE WHAT'S ON THE HORIZON FOR US.
IS IT FIVE MONTHS, SIX MONTHS, THREE YEARS, WHERE WE DO NEED TO MAYBE ISSUE SOME DEBT BECAUSE WE'RE LOOKING FOR SOME, WE'RE, WE'RE LOOKING TO ENHANCE A LOT OF THE CITY, A LOT OF IMPROVEMENTS THAT HAVE BEEN LONG OVERDUE.
SO I KNOW WE'VE TACKLED SOME OF 'EM, BUT THANK YOU SO MUCH FOR COMING AND THIS IS GREAT STUFF.
IT'S GONNA SIT NEXT TO THE BED.
AND AGAIN, UH, UH, THANKS TO DIRECTOR OF FINANCE.
UH, SHE'S BEEN GREAT TO WORK WITH.
UH, WHEN WE WENT THROUGH THIS RATING PROCESS, UM, I KNOW SHE WAS, UH, A LITTLE CONCERNED THAT, YOU KNOW, IT WAS GONNA BE, I THINK HER FIRST TIME GOING THROUGH SURVEILLANCE.
AND, UH, IT'S, IT'S A LITTLE NERVE WRACKING.
UM, BECAUSE YOU, YOU DON'T KNOW WHAT THEY'RE GONNA ASK.
YOU DON'T NECESSARILY KNOW HOW MUCH DETAIL THEY'RE GONNA ASK FOR.
AND, AND I THINK THE, UH, THE BOTTOM LINE, YOU KNOW, IS THE RESULTS OF, OF A RATING UPGRADE.
SO, UM, YOU'RE, YOU'RE DOING A LOT OF THINGS THE RIGHT WAY AND, AND CONGRATULATE YOU ON THAT.
OKAY, UM, NEXT ITEM IS GONNA BE THE, UH, ITEM FOR INDIVIDUAL CONSIDERATION.
ITEM NUMBER ONE FOR THE, UH, VALONE TAX RATE.
MS. STEPHANIE, HI, UH, GOOD AFTERNOON.
STEPHANIE SANANDO, FINANCE DIRECTOR FOR THE RECORD.
SO, UM, THIS ITEM IS JUST OPEN FOR DISCUSSION.
SO, UM, I BASE OR BUDGET BASED ON KEEPING OR TAX RATE AS IT IS.
AND AFTER THE PRESENTATION FROM MR. ODONNELL, I THINK IT'S THE MOST REASONABLE THING TO DO BECAUSE WE DON'T KNOW HOW MUCH VALUATIONS ARE GONNA BE NEXT YEAR BASED ON, UH, FROM A 27% FROM LAST YEAR TO A 2.8.
WE MIGHT LOWER THE TAX RATE, BUT THE VALUATION MIGHT NOT BE AS HIGH AS WE EXPECTED FOR NEXT YEAR.
SO, UM, THAT'S WHAT I'M CONSIDERING AND THAT'S WHAT I BASED OFF THE, THE BUDGET OF.
UM, SO IF YOU GUYS HAVE ANY QUESTIONS OR YOU WANNA MAKE ANY COMMENTS ABOUT THE TAX RATE, THIS IS, THIS IS THE TIME TO DO IT.
I KNOW AT LAST MEETING WE KIND OF DISCUSS IT A LITTLE BIT, BUT IT'S JUST FOR Y'ALL TO DISCUSS IT IF YOU HAVE ANY QUESTIONS REQUIRED THAT OR ANY SUGGESTIONS.
ANY QUESTIONS, STEPH? THIS IS, UH, INCLUDING WHAT PERCENT, UH, CONSIDERING WHAT PERCENT COLLECTION RATE, 91 9 1.
AND IS THAT TRADITIONALLY WHAT IT IS? UH, WE GOT, WE GET UNDER THE APPRAISAL, SEND US WHAT? IT'S OUR COLLECTION RATE.
HOWEVER, WE TRY TO BE REALISTIC AND WE TRY TO BE CONSERVATIVE.
UM, SO WE DO, I DID ON 91% JUST TO BE ON THE SAFE SIDE.
'CAUSE WE MIGHT NOT COLLECT THE 96.7 THAT THEY'RE SEEING.
FROM WHAT I'VE SEEN, UH, WE DO DO LIKE A 94 95.
SO IT'S JUST BEING CONSERVATIVE WHEN IT COMES TO HOW MUCH REVENUE WE EXPECT COMING IN AND END UP NOT HAPPENING.
OR IT'S BETTER TO, UM, EXPECT LESS, RECEIVE MORE, UH, IN TERMS OF THE BUDGET.
AND THEN THAT'S WHY I TELL MY WIFE,
SO, SO EVERYONE THAT MISSED THE JOKE, EX EXPECT LESS, GET MORE.
WELL, WHAT DOES THAT 5% TRANSLATE IN DOLLAR VALUE?
[00:40:01]
SO YOU'RE LOOKING AT, UM, SO I, I DON'T, I DON'T, I DIDN'T BRING THAT THAT PAGE WITH ME BECAUSE WE WENT OVER IT LAST TIME, BUT IT IS QUITE A BIT, BUT IT'S NOT REALISTIC TO SAY, UM, THAT WE'RE GONNA COLLECT THE 5.6% BECAUSE SOMETIMES, UM, WE DON'T.SO IT'S JUST, IT'S JUST NOT A, I WILL TELL YOU THIS, A ONE PENNY WITH THIS NEW VALUATION, WE'RE TALKING ABOUT $155,000 ABOUT AROUND THAT.
SO IF, IF WE ARE LOOKING AT DECREASING IT SOMEHOW, THAT'S HOW MUCH WE'RE GONNA BE LOSING AT A HUNDRED PERCENT COLLECTION RATE.
I GOT A QUESTION A LITTLE BIT OFF OF THIS, BUT WHAT PERCENTAGE OF OUR BUDGET COMES FROM VALOR? SO, UM, LET ME GO.
IT'S GONNA BECOME A LITTLE BIT USEFUL.
UM, BUT THE, THAT'S REVENUE BY SOURCE.
SO IF YOU SEE THAT, UM, BLUE, 42% COMES FROM ALOR.
AND THEN WE HAVE THE OTHER 38, WHICH IS MAINLY COMPOSER OF THE SALES TAX.
SO YOU WENT A LITTLE BIT AHEAD OF THE GAME, BUT IT'S KIND OF PART OF THE SAME BUDGET WORKSHOP THAT WE'RE, WE'RE DISCUSSING.
UM, AND THEN THIS IS HOW MUCH, UM, WE'VE COLLECTED ON 2223.
AND THEN THAT'S HOW MUCH WE BUDGET 2324, WHICH SEEMS PRETTY REALISTIC TAKING THE 91% APPROACH, UH, BASED ON MONTH TO MONTH COLLECTION RATES.
SO, UM, STEPH, DO YOU SEE, I'M TRYING TO SEE LIKE WHAT YOU SEE ON YOUR END.
IS IT ANOTHER FINANCE DIRECTOR MAY USE A DIFFERENT PERCENTAGE? UM, DO YOU SEE THAT ON YOUR END ON AN EXCEL? DOES IT SHOW NINE? 'CAUSE I HAVE ALL THE PREVIOUS YEARS, RIGHT? MM-HMM,
SO ARE WE USING DIFFERENT PERCENTAGES FOR THAT COLLECTION? PROPOSED COLLECTION IS, DO SOME USE 95? SOME USE 91 YOU'RE USING CONSERVATIVELY 91.
SO I KNOW THAT PRIOR MYSELF, UM, HONESTLY I DIDN'T KNOW WHAT, HOW, WHAT APPROACH SHE TOOK.
BUT BEFORE THAT, THE FINANCE DIRECTOR WAS HERE FOR FIVE YEARS.
SHE WAS USING BETWEEN A 93 AND A 94.
BUT IF YOU SEE OR PROPERTY TAX, UM, THE, THE VALUE APPRAISED FLUCTUATE TREMENDOUSLY WHEN I CAME IN.
SO IF I WAS TO FOCUS ONLY ON WHAT THE APPRAISAL WAS GONNA SAY, THEN I DON'T KNOW WHAT TO EXPECT.
LIKE FROM LAST YEAR TO THIS YEAR, IT'S COMPLETELY DIFFERENT.
SO THAT'S WHY I TOOK THAT MOST CONSERVATIVE APPROACH RATHER THAN WHAT WE NORMALLY SEE.
IT'S LIKE A 94 95 ON OUR BOOKS.
SO IF YOU SEE, LIKE THAT'S WHAT I'M SAYING ON THE 6.9 MILLION THAT SEEMS REALISTIC.
AND I DID THE 91 APPROACH AND I KNOW, UM, WE DISCUSSED THAT, BUT CONSISTENTLY IT'S BEEN 95, THEY'VE, THEY'VE DONE IT AT NINE FIVE MORE OF A, A LITTLE BIT RISKIER WAY.
UM, SOMETIMES THEY WILL HIT THE MARK, SOMETIMES THEY WON'T.
UM, THAT'S, THAT'S JUST WHAT IT IS.
SOMETIMES THEY DID COLLECT WHAT THEY SAID USING THE 94, BUT SOMETIMES THEY WENT DOWN AND THEY DID LESS THAN THAT.
SO YOU OVER, OVER, UM, SAY YOU WERE GONNA COLLECT AND THEN YOU UNDER COLLECTED AND IT IMPACTS OR REVENUE OVER EXPENSES AT THE END OF THE, AT THE END OF THE YEAR AND IT DOESN'T ADD MORE TOWARDS OR FUND BALANCE OR GIVE US SOME SORT OF ROOM TO ADD TO THE NEXT YEAR BUDGET.
DO WE HAVE THAT, UM, THE FINAL TABULATION FROM THE APPRAISAL DISTRICT IN OUR BOOKS YET? IT IS, YES.
IT'S, AND IT'S ALSO INCLUDED IN THE PRESENTATION.
IT WAS, UH, 1 0 5 5, IT IS INCLUDED.
THAT'S, THOSE ARE NUMBERS STRAIGHT FROM THE CERTIFIED VALUES.
THE INS IS DIFFERENT ON YOUR FRONT PAGE THAN WHAT DON HAS.
YES, BECAUSE I DID FOR THAT ONE BECAUSE IT'S THE ONE THAT GOES INTO THE NEWSPAPER.
WE HAVE TO DO THE A HUNDRED PERCENT AND THE OTHER ONE, IT'S THE 91%.
IF YOU SEE THE DIFFERENCE, THE 91, THE 91% IS OUR 4 CENTS.
IT'S THE ONE THAT DONALD PUT IN.
AND THEN THE OTHER ONE THAT'S KIND OF STRAIGHT FROM THE, WHAT I'M GONNA ADVERTISE WHENEVER WE DO THE, THE PROPERTY TAX AND IT HAS THE BUTTER RATE, THE VOTER, VOTER APPROVAL TAX RATE, AND IT HAS, LEMME PUT IT ON THE SCREEN, THAT ONE, IT HAS THE PROPOSED TAX RATE, THE PROCEEDING TAX RATE, THE NO NEW REVENUE TAX REPORT, APPROVAL TAX RATE AND MINUS IN OPERATION TAX RATE.
SO THAT'S WHAT IT GOES AT A HUNDRED PERCENT.
AND THAT'S HOW MUCH IS FROM A HUNDRED PERCENT PERSPECTIVE, THAT'S NORMALLY WHAT IT'S POSTED.
AND I'VE JUST BEEN KEEPING DOING THE A HUNDRED PERCENT AS PREVIOUS.
SO I'M GONNA, IF I MAY YES, GO AHEAD.
I KEEP TRYING TO SHOOT FOR SOME REDUCTION IN PROPERTY TAXES BECAUSE
[00:45:01]
SOMEWHERE I FOUND THE PREVIOUS HISTORY OF TAX RATE AND ALL ETERNITY.I THINK I'VE SENT IT TO EVERYBODY.
I DID A FIVE YEAR, UM, OH, THIS IS YOUR PROJECTIONS? NO, THAT'S, THAT'S FOR WHAT IT'S BEEN FOR FIVE YEARS AND WE'RE JUST KEEPING IT.
I FOUND ONE ONLINE AND I SENT IT TO EVERYBODY.
BUT IT'S, IT'S THE REASON I'M SO HUNG UP ON LIKE GETTING UNDER 70 CENTS BECAUSE IT'LL BE A HISTORICAL MARKER FOR US.
AND I WANNA, I WANT TO SAFELY GET THERE AND MAKE SURE WE CAN SUSTAIN THAT BEFORE WE START TRYING TO USE UP ALL THE MONEY.
DOES, DOES THAT MAKE SENSE? I DON'T TELL MY WIFE HOW MUCH IS IN THE BANK ACCOUNT.
I ONLY GIVE HER WHAT SHE CAN SEE.
IS THAT'S HOW I'M, THAT'S HOW I'M HANDLING THESE FINANCES HERE AT END, AT THE END OF THE DAY, SIR.
UM, NO, SHE KNOWS AT THE END OF THE DAY, MAYOR PROTON, IT'S, IT'S WHAT, WHAT IT'S DECIDED BY COMMISSION AND THE ROUTE THAT YOU ALL WANT TO TAKE THIS CITY.
SO IF YOU ALL AGREE WITH MY PROCEED, LIKE I MENTIONED, YOU'RE TALKING ABOUT LIKE 155 PER 1 CENT.
WELL, I'M GONNA JUMP IN HERE BEFORE PETE GETS HIMSELF IN ANY MORE TROUBLE.
AND I'D LIKE TO ADD THAT WE'RE, WE'RE ON THE RECORD.
FOR WHATEVER THAT'S WORTH EXACTLY.
I, I GO RIGHT BY YOUR HOUSE EVERY DAY, PETE, SO I CAN STOP AND TALK TO JACKIE ANYTIME.
THE, THE, UH, SO OKAY, SO WE'RE TALKING REALLY FROM A PUBLIC PERCEPTION STANDPOINT HERE AS MUCH AS ANYTHING.
FIRST QUESTION THEN IS IF WE DROP A PENNY TO GET UNDER 16 UNDER 70 CENTS, WHAT DOES THAT TRANSLATE TO IN A, YOU SAID ABOUT $150,000.
SO 20 TO, DEPENDING ON THE VALUATION OF THE HOME.
I'M SORRY, MAYOR, I SHOULD ASK PERMISSION.
AVERAGE HOME IN SAN BENITO, A HUNDRED THOUSAND VALUATION 20 BUCKS.
NOW FOR A HUNDRED THOUSAND DOLLARS HOME, PROBABLY MORE IN THE 150,000 RANGE.
SO YOU'RE PROBABLY TALKING 15, 30 BUCKS, 40 BUCKS, SOMETHING LIKE THAT.
DEPENDS ON THE PERCENTAGE, BUT YEAH, THAT'S THE NUMBER.
SO THE QUESTION IN MY MIND THEN IS DOES THE PERCEPTION OF BEING UNDER 70% HELP US ENOUGH TO PERHAPS BRING MORE PEOPLE TO THE COMMUNITY, THUS INCREASING OUR TAX BASE? THAT'S NOT REALLY A QUESTION FOR YOU, STEPHANIE.
I WHAT I'VE SEEN, UH, OR NEIGHBORHOODS NEIGHBOR CITIES DO HAVE BELOW 70%.
I WON'T LIE TO YOU SAYING, OH, NO.
OR THEY, YOU HAVE TO LOOK AT WHERE WE'RE AT.
AND THE COUNTY HAS IT, UH, EVERY YEAR, RIGHT WHERE YOU'RE AT IN COMPARISON TO ALL THE TAXING ENTITIES IN CAMERON COUNTY.
AND WE'RE NOT FAVORABLE WHEN YOU LOOK AT THAT.
AND WHEN I LOOK AT THAT, I'M NOT SURE IF EVERYONE'S LOOKING AT THAT WHEN THEY'RE LOOKING TO MOVE.
BUT YOU COULD USE IT AS A MARKETING, I THINK AS MARKETING OPPORTUNITY TO SAY, HEY, YOU KNOW, WE'RE LOOKING AT WAYS TO IMPROVE OUR COMMUNITY, BUT ALSO BEING FISCALLY RESPONSIBLE AND PUTTING SOME OF THAT TAX SAVINGS BACK.
SOME COMMUNITIES DON'T CHARGE A TAX RATE, BUT I THINK THAT'S A LITTLE, THAT'S CRAZY.
WELL, OKAY, WE HAVE OUR, OUR REVENUE IN SPACE OFF TAX.
WE WOULD LIKE FOR IT TO BE MORE FROM THE SALES TAX, BUT IT'S, WE'RE NOT THERE YET.
SO WE HAVE OUR ECONOMIC DEVELOPMENT PERSON HERE.
SO FRED, YOU GOT ANY OPINION ON THIS? YES, SIR.
UH, MAYOR COMMISSIONERS, IT, YOU, YOU MENTIONED SOMETHING REALLY IMPORTANT AND IT'S, ITS PERCEPTION AT THIS POINT.
UM, THE ECONOMIC DEVELOPMENT FORMULA IS VERY COMPLEX.
IT DEPENDS ON A LOT OF DIFFERENT VARIABLES.
UH, BUT YOU ALSO HAVE QUALITY OF LIFE.
YOU HAVE PUBLIC SAFETY, YOU HAVE SCHOOLS, YOU HAVE A LOT OF OTHER THINGS.
AND YOU KNOW, I'VE, I'VE, I'VE HAD THIS CONVERSATION WITH THE MAYOR, PRO TEM, THE MAYOR STAFF, STEPHANIE.
UM, YEAH, THAT'S WHAT WE'RE HERE FOR.
I MEAN, SO YOU BROUGHT UP A GOOD QUESTION.
IS THE PUBLIC RELATION GAIN FROM GOING BELOW 70, UM, WORTH THAT LOSS IN REVENUE, WHICH IS NEGLIGIBLE.
I, I WILL SAY THAT IT'S A NEGLIGIBLE LOSS, ESPECIALLY AT 91%.
BUT THE POINT IS THAT, UH, MY ONLY CONCERN IS THAT WE'D HAVE TO REALLY PUSH THAT BECAUSE, UH, WITH VALUATION GOING UP THAT SAVINGS, IT'S NOT GONNA
[00:50:01]
BE A DOLLAR AMOUNT.IT'S GONNA HAVE TO BE PERCEPTION BECAUSE THAT 20 OR $30, WHATEVER IT IS THAT WE'RE GIVING UP IN THE AVERAGE HOMEOWNER'S TAX BILL IS GONNA GET WASHED OUT.
IT'LL GET WASHED OUT BY VALUATION, BY, BY THE COUNTY AND EVERYBODY ELSE.
UNFORTUNATELY, THAT'S OUT OF OUR CONTROL.
UH, HOWEVER, WE DO GET BLAMED FOR THAT.
EVEN THOUGH WE DON'T SET THE VALUATION, WE DON'T COME BACK.
THEY COME TO US BECAUSE WE'RE THE BAD PEOPLE THAT SEND THEM THE TAX BILL.
UH, SO IT'S, IT'S A, IT'S A PERCEPTION ISSUE AT THIS POINT.
I KNOW WE'VE, WE, WE, UH, WE NEED TO LOOK AT IT BECAUSE YES, TAX RATE DOES MAKE A DIFFERENCE.
AND YOU KNOW, I, I, MAYOR PRO TEM DID SEND ME THAT CHART, AND YOU KNOW, IT IS, IT IS SOMETHING TO POP YOUR COLLAR OVER IF YOU'VE GOTTEN UNDER, UH, 70 CENTS AFTER 30 YEARS PLUS.
UM, BUT WE NEED TO MAKE SURE WE MARKET IT CORRECTLY.
UH, MAKE SURE THAT THE BRANDING IS THERE, THAT WE GET THE MOST OUT OF IT THAT WE CAN.
AND YOU KNOW, THAT'S WHY WE'RE TODAY, IF WE GO THAT, IF WE GO THAT ROUTE, IF WE GO THAT ROUTE.
NOW LET ME ASK YOU, STEPHANIE, DO YOU REMEMBER HOW MUCH, UH, WHEN WE WENT FROM 72 TO 70, HOW MUCH WAS IT? UH, ABOUT 80,000 AT THE TIME.
SO WITH ALL THIS, THAT'S JUST ONE PENNY.
YEAH, JUST IN THE PAST IT WAS TWO AND IT WAS ONE 60.
'CAUSE WE HAD LESS DEVELOPMENT AND NOW IT'S, IT'LL BE FOR PENNY.
ABOUT THE SAME WAS LOWER MAYOR.
WHAT THAT SHOWS ME IS THAT WE WERE ABLE TO STILL PROVIDE A LOWER TAX BASE INCREASE SERVICES FOR THE EMPLOYEES.
'CAUSE NOW THEY HAVE COVER FULL MEDICAL, DENTAL, AND VISION.
WE WERE ABLE TO INCREASE WAGES.
WE WERE ABLE TO DO 90 BLOCKS OF STREETS, PROPOSED 90 BLOCKS OF STREETS.
WE WERE ABLE TO BUY ALL THIS EQUIPMENT.
WELL, THE FIRE MARSHAL'S HERE, HE HAS A BRAND NEW TRUCK SITTING OUTSIDE SOMEWHERE.
UM, NEW POSITIONS IN CERTAIN DEPARTMENTS.
WE WERE ABLE TO DO ALL OF THAT WITH A 2 CENT DECREASE.
IF I MAY ADD, WE DID HAVE A 27 POINT SOME PERCENT INCREASE IN VALUATION OF HOMES, WHICH THAT ADDED TO ALL OF THOSE THINGS THAT HAPPENED THAT MADE IT HAPPEN.
SO NICE, NICE, NICE, NICE TRY.
SO LET ME GO BACK TO THE FIRST PAGE.
THE NO NEW REVENUE TAX RATE THAT IS IMPORTANT FOR US BECAUSE THAT EXPRESSES TO THE PUBLIC THAT 63 CENTS TAX RATE IS WHAT WE CAN ADOPT AND STILL RUN THE SAME GOVERNMENT WE RAN LAST YEAR WITH NO, UM, NO ADDED COST OF LIVING INCREASE.
NO, NO ADDED DEBT, PURCHASE OF EQUIPMENT, ANY EXTRA EQUIPMENT NEEDED OR, AND THIS IS NOT INCLUDING ANY NEW HOMES BUILT, DO WE THINK NO NEW HOMES BUILT WILL BE BUILT, JOANNA OR MONICA IN SAN BENITO.
AND THAT'S A VERY CONSERVATIVE BECAUSE WE LIKE TO BE CONSERVATIVE.
EVERYBODY LAUGHS AT ME 'CAUSE I BUY BITCOIN, BUT THAT'S DIFFERENT.
UM, MAINTENANCE INTEREST IN SINKING RATE.
IF I ADD THAT 4 CENTS TO THE 63 CENTS, THAT PUTS ME AT 67, I SHOULD ASK, BE ASKING FOR 3 CENTS.
I'M NOT, I'M ONLY ASKING FOR ONE OR TWO.
I KNOW I'M JUST PLEADING MY CASE AND YOU ARE THERE.
UM, YOU KNOW, I I, I HAVE FAITH IN OUR STAFF, OUR DEPARTMENT FINANCE, AND I THINK THAT WE CAN STILL DO IT.
UM, WE ARE ABLE TO COMFORTABLY AND, AND YOU KNOW, AND I AGREE, YOU KNOW, AT ONE POINT, YOU KNOW, WE CAN, UH, WE CAN LOWER IT DOWN, BUT NOT RIGHT NOW, BECAUSE AGAIN, I'M STILL OUT THERE WITH THOSE PEOPLE, WITH THE WORKERS.
AND YOU'LL SEE ME ON YOUTUBE WHERE I GOT, I GOT INTO IT WITH MY NEIGHBOR TODAY,
AND, UH, THEY WANT THEIR STREETS.
THE NEIGHBORHOOD WHERE I'M AT IS RUN DOWN AND THEY'RE COMING.
OKAY? SO I DON'T MIND SAYING, YOU KNOW WHAT, I WOULD LIKE TO BRING IT DOWN.
AND, BUT THE COST OF WHAT WE HAVE RIGHT NOW, WE'RE SUPPOSED TO HAVE AT LEAST TWO PAVING CREWS.
WHERE ARE THEY? THAT WAS MY DEAL.
WHEN, WHEN I TOLD, UH, THE PREVIOUS CITY MANAGER WE'RE GONNA GO OUT FOR A NEW PAVER.
BUT THE SECOND ONE, THE NEW CREW THAT WE HAVE, THAT WE SHOULD HAVE ALREADY
[00:55:01]
WAS SUPPOSED TO BE LITIGATING ALL THE, THE CROSS STREETS WHEN YOU DID ONE, THE ONE OR TWO STREETS, THE CROSS, UH, STREETS WHERE IT'S SUPPOSED TO BE DONE, IT'S NOT THERE YET.SO WE HAVE A LOT OF, UH, STREETS, LONG STREETS ARE BEING DONE, BUT A LOT OF THE, THE CROSS STREETS ARE NOT BEING DONE.
SO IN A SENSE, WHERE ARE THOSE PEOPLE? I NEED TO KNOW.
THEY WANNA KNOW RIGHT NOW, WHERE ARE THEY? AND THE THING IS THAT, THAT WE HAVE SO MUCH, THERE'S STILL EQUIPMENT THAT'S BEING OUT THERE THAT STILL NEEDS TO BE REPLACED FOR YEARS AND DECADES.
AND THERE'S SOME EQUIPMENT THAT, UH, I KNOW THAT THE, UH, PLANNING DIVISION, UH, WANTED WHEN WE CAME IN AND, AND THE, THE, UH, THE COVID AFTER THE COVID, SO THAT WAS PURCHASED FOR THEM.
I HOPE YOU KNOW, THAT, UH, THEY'RE USING IT FOR THE RIGHT REASONS AGAIN, BUT THEY'RE STILL NOT RIGHT NOW.
I WISH I COULD TELL YOU, YOU KNOW, GO WITH ME, GO WITH ME OUTSIDE.
YOU'LL, YOU'LL FIND OUT REAL QUICK.
SO, BUT THE THING IS THAT THE YOU WORKERS AND THE, THE, THE CITY PEOPLE HAVE DONE AN OUTSTANDING JOB KEEPING US AFLOAT, KEEPING US MOVING FORWARD.
BUT THERE'S STILL MORE THAN WE NEED TO DO.
THERE'S MORE PEOPLE THAT NEED TO BE, YOU KNOW, UH, FILLING A, A LOT OF THE, UH, THE, THE, THE POSITIONS THAT NEED TO BE OPEN, BECAUSE THERE'S STILL SOME EQUIPMENT THAT NEEDS TO BE USED OUT THERE FOR THOSE PEOPLE.
THE DOWNTOWN AREA, WE'RE STILL HAVING TROUBLE WITH IT.
WHERE ARE WE BY LOWERING SOME OF THE, THE, THE, WELL, LET'S JUST USE WHAT WE GOT RIGHT NOW FOR THE NEXT ONE OR TWO MORE YEARS, AND THEN WE CAN SEE, YOU KNOW, WHAT THEY, LET'S DO THE DOWNTOWN AREA.
LET'S DO THE, THE, THE WATER AND INFRASTRUCTURE ON IT.
AND THEN I CAN TELL YOU, YOU KNOW WHAT, YOU DON'T DO DO 35, LET'S GO FOR 35.
BUT RIGHT NOW, THIS IS NOT THE TIME TO START LOWERING SOMETHING THAT, UH, WE NEED SO DESPERATELY WITH ALL THIS, UH, THE FINANCES.
AND I'M POURING MY HEART OUT TO YOU GUYS, TO YOU COMMISSIONER, TO, TO, UH, TO SHOW YOU, TO TELL YOU THAT IT'S NOT EASY BEING OUT THERE WITH THOSE PEOPLE.
BECAUSE AS YOU KNOW, I DO MY BEST TO KEEP QUIET, BUT SOMETIMES I DON'T.
I KNOW IT'S GONNA COST ME RIGHT NOW, BUT THE POINT IS IT'S GONNA COST ME BECAUSE I'M GOING TO FIGHT TO KEEP WHAT WE HAVE RIGHT NOW UNTIL WE CAN ALLEVIATE WHAT, UH, THE, THE EQUIPMENT, THE PEOPLE, THE PERSONNEL.
IF WE CAN GIVE SOMETHING ELSE, ANY OTHER DEDUCTION SOMEWHERE TO THE, SOME OF THE, UH, UH, THE WATER BILL OR SOMETHING, OKAY, FINE, LET'S DO IT.
LET'S FIX, FIX WHAT WE HAVE RIGHT NOW.
WE NEED TO GET IT FIXED NOW, MAYOR, I, I'M, I'M GONNA BE FIRST JUST TO, TO THANK YOU SO MUCH FOR ALL THE GREAT WORK THAT YOU DO AND FOR THE, THE STUFF THAT YOU, UH, LISTEN TO EVERY DAY FROM LOTS AND LOTS OF DIFFERENT PEOPLE.
AND I AM SO GRATEFUL THAT YOU DO.
WE, WE THANK YOU FOR THAT VERY MUCH.
UH, I'M GONNA ADD TO THAT THOUGH, AND TO SAY THAT THERE'S REALLY TWO WAYS TO LOOK AT THIS.
AND, AND, AND ONE OF MY FIRST CONCERNS IS, IS OKAY THAT WE, WE DON'T GET WHAT'S GONNA HAPPEN HERE OVER THE NEXT COUPLE OF YEARS, TO ME IS FASCINATING.
I AM ABSOLUTELY THRILLED TO SEE WHAT WE'RE BEGINNING TO DO AS A COMMUNITY AND WHERE WE'RE GONNA GO.
WE HAVE SOME GREAT OPPORTUNITIES AHEAD OF US NOW, LIKE WE'VE NOT HAD BEFORE.
AND WE'RE PUTTING PEOPLE IN PLACE TO SEE THAT THAT GROWTH COMES.
I REMEMBER LISTENING TO A CONVERSATION NOT TOO LONG AGO ABOUT HOW SOME OF OUR LEADERSHIP IN THE PAST DIDN'T WANT TO SEE TOO MUCH GROWTH HAPPEN IN THE COMMUNITY.
AND, AND MY COMMENT TO, TO THOSE WHO DIDN'T WANNA SEE THE GROWTH OF THE GROWTH IN LEADERSHIP WAS GREAT.
WHY DON'T YOU THEN WRITE THE CHECKS TO FIX THE STREETS OUTTA YOUR POCKET? BECAUSE THAT'S WHERE IT'S GOTTA COME FROM.
'CAUSE THE OTHER, THE ONLY OTHER WAY TO GET IT DONE IS TO BE ABLE TO BRING IN OTHER NEW STUFF AND OTHER ADDITIONAL REVENUES AND, AND THOSE KINDS OF THINGS IN ORDER TO GET IT DONE, IMPROVE THE SALES TAX, BUILD MORE HOMES, DO ALL THOSE KINDS OF THINGS TO CONTRIBUTE TO THE DOLLARS AND CENTS OF THIS.
AND SO THERE'S A BALANCE HERE BETWEEN, BETWEEN CONTINUING TO HANG ON WHAT WE GOT AND ALSO THEN BRINGING IN THE NEW AND BEING ABLE TO ADD TO AND IMPROVE OUR ECONOMY, UH, OVERALL.
AND SO, I, I, YOU KNOW, I UNDERSTAND COMPLETELY WHAT YOU'RE SAYING.
DO WE HANG ONTO IT? BUT AT THE SAME TIME, LET'S GROW THE PIE.
LET'S NOT, LET'S NOT JUST MAKE SURE THAT WE'RE ALL FIGHTING OVER THE SAME PIE, BUT LET'S GROW THE PIE SO THAT THE PIE, SO THERE'S MORE RESOURCES TO BE HAD TO DO THE THINGS THAT NEED TO BE DONE THAT YOU'RE TALKING ABOUT.
SO, AND, AND HOW DO WE DO THAT? IS IT A 1% DROP OR IS IT, I MEAN, YOU KNOW, IF WE LISTEN TO PETE DOWN THERE, WE'D ALL, YOU KNOW, WE GET HIM TO WRITE THE CHECKS FOR US THEN SINCE HE WANTS TO DROP THE FACTS RATE SO MUCH.
BUT, BUT I, I CAN FIND A LOT OF
[01:00:01]
SAVINGS HERE WHERE WE'RE BEING VERY, VERY, VERY, VERY, VERY CONSERVATIVE.BUT YOU NEED TO LOOK DEEPER INTO THE NUMBERS, RIGHT? SO THE BRIDGE BRINGS IN 300 AND SOMETHING THOUSAND DOLLARS, AND WE'RE ONLY ASSUMING 180, WE'RE ASSUMING A 90% COLLECTION.
AND IT'S CONSISTENTLY BEEN A 95.
SO THERE'S A LOT OF AREAS HERE THAT THERE'S MONEY.
THAT'S ONLY FOR THE, FOR THE TAX RATE WHERE WE ASSUME THE 91 COLLECTION.
UM, WE DON'T, WE DON'T ASSUME THAT FOR EVERYTHING THAT'S BASED ON NUMBERS THROUGH THE YEAR, RIGHT? SO, UH, WE EXPECT THE LAST MONTH TO BE THE SAME AS THE PREVIOUS MONTHS THAT WE COLLECTED.
WHAT HAPPENED WITH THE BRIDGE? UH, SOMETIMES THEY DON'T SEND US THE MONEY UP TO THE END OF THE YEAR.
SO IT ENDS UP BEING FALLING INTO THE OTHER YEAR.
OH, THAT'S A DIFFERENT CONVERSATION.
AND WE WILL LOOK AT THAT CONTRACT AND FRED, YOU GOT ANOTHER TASK? YEAH.
AND MAKE SURE THEY'RE MEETING THE END OF THE BARGAIN.
ON, UM, BECAUSE THEN THEY'RE STICKING THE BURDEN TO OUR TAXPAYER.
AND LIKE WE DID LAST YEAR, WE LOWERED THE TAX RATE, BUT THEY RAISED THE VALUES.
SO, UM, SO IF YOU SEE, UM, ON THAT SCREEN, 'CAUSE WE ARE, ARE WE, THAT WAY WE CAN MOVE TO THE NEXT ITEM, WHICH IS A BUDGET WORKSHOP.
THAT'S, THAT'S WHAT IT'S EXPECTED TO INCREASE PER ITEM.
AND SOME, IT'S JUST BASED ON THE NUMBERS THAT WE'VE BEEN COLLECTING MONTH AFTER MONTH AFTER MONTH FOR THIS YEAR.
SO IF I WAS TO BE REALLY, UM, GENEROUS ABOUT THE REVENUES THAT, THE EXTRA REVENUES THAT WE'RE GONNA COLLECT, THEN IT'S AT THE END OF THE YEAR, WE'RE NOT GONNA, IT'S NOT GONNA ADD UP.
OUR EXPENSES ARE GONNA BE HIGHER THAN OUR REVENUES AND WE DON'T WANT THAT, ESPECIALLY KNOWING THAT WE'RE UNDER THE LOOP BASED ON WHAT MR. DON MENTIONED ABOUT, OR OUR RATING GOING UP.
AND THAT'S, THAT'S THE MAIN REASON WHY IF WE WANT TO LATER DOWN THE ROAD SEEK FOR MORE DEB OR TO DO ANY BIG PROJECTS, WE NEED TO BE THERE.
WE NEED TO BE AT OUR BEST FINANCIAL SITUATION.
AND IF WE ARE OVER EXPECTING REVENUES AND THEY'RE NOT GETTING THEM, WE'RE NOT GONNA GET THERE.
UM, THAT'S JUST, THAT'S JUST WHAT IT IS.
I CANNOT, I MEAN, ON THE, ON THE EXPENSE SIDE, UH, IF YOU WANNA BE A LITTLE BIT MORE TIED UP A LITTLE BIT, THAT, THAT MAKES A LITTLE BIT MORE SENSE FOR ME.
THAT OVERLOOKING AT OUR REVENUES AND SAYING, HEY, INCREASE THE AMOUNT OF REVENUE THAT YOU EXPECT FOR THEM TO COME IN, BECAUSE THAT JUST FINANCIALLY IT WON'T MAKE, MAKE SENSE.
'CAUSE IN THE LONG RUN, AT THE END OF THE YEAR, YOU'RE NOT GONNA BE REVENUE'S OVER EXPENSES.
YOU'RE GONNA BE, UM, AND IN A NEGATIVE SITUATION, IF WE WANNA STAY AT THE CURRENT RATE, AND I'M SAYING THIS IS THE COMMISSION AND ADMINISTRATION, I BETTER SEE THE FIRE ON THOSE WHEELS AND WE BETTER BE SEEING SOME STUFF GET DONE.
SOME OF US LIVE HERE, SOME OF US DON'T.
BUT I LIVE HERE, I HAVE A FAMILY HERE.
I WALK THE PARKS HERE, I WANNA BIKE TO WORK.
THAT'S UNREALISTIC BECAUSE IT'S DANGEROUS.
I WANT TO BE ABLE TO ENJOY THE QUALITY OF LIFE, IMPROVE THE QUALITY OF LIFE FOR PEOPLE MY AGE.
I HATE TO SAY THAT, BUT PEOPLE MY AGE CAN LOVE THIS PLACE LIKE I DO, THEY MOVE NEXT DOOR.
WHY DO THEY MOVE TO THE NEIGHBORING TOWN? YOU WERE RAISED HERE, YOUR KIDS WENT TO, YOU WENT TO SCHOOL HERE.
WHY ARE THEY MOVING AWAY? SO I, I DO, I DO SEE IT.
UH, BECAUSE YOU ALSO DIRECTED TO, TO MATCH MANAGEMENT.
I DO SEE HOW THE, UH, LOWERING THE TECH.
I'M NOT, AND AGAIN, IT'S NOT THE ME THAT I AM OPPOSED TO LIKE THE, LIKE THE CM MENTIONED, IT'S NOT LIKE A HUGE AMOUNT OF MONEY THAT IT'S GONNA BE, WE CAN MAKE, MAKE ARRANGEMENTS.
I DO SEE HIS POINT OF VIEW SAYING THAT MAYBE LOWERING DETECTOR ATTRACTS MORE PEOPLE AND ENDS UP BEING MORE, MORE HOMES.
SO ENDS UP BEING, COMING BACK TO US.
I, I DON'T SEE THE POINT OF VIEW AND, AND LIKE I, LIKE I MENTIONED, NOT THAT I'M, I'M UP FOR IT OR OPPOSED TO IT.
AT THE END OF THE DAY, IT'S THE WAY YOU WANNA LEAD THE CITY.
AND I'M JUST HERE TO, UH, AGGRESSIVELY
I, THE, THE ONE THING THAT, THAT DON POINTED OUT WAS THAT WE'RE COMING UP TO A TIME THAT'S GONNA BE VERY IMPORTANT.
AND HE MENTIONED ONE THING THAT MADE ME, UH, TEETER TO THE OTHER WAY, IS THAT IF THEY START SEEING THIS GENERAL FUND BALANCE GOING DOWN IN THE OPPOSITE DIRECTION, THEN OUR RATES COULD GO DOWN.
SO MAYBE I COULD BEAR WITH YOU FOR A YEAR TO SEE WHERE THOSE RATES GO.
SEE IF THOSE OPPORTUNITIES FOR REFUND INCOME, I MEAN, OR PULL OUT SOME DEBT TO TAKE CARE OF THESE BIG PROJECTS FASTER AT END OF DAY.
IT'S NOT BECAUSE THAT'S GONNA BRING IN THE MORE SALES TAX.
ONCE WE HAVE, IT BRINGS IN THE BIG BUSINESS.
BIG BUSINESS DOESN'T WANT TO COME IN WHERE THERE'S A SEPTIC TANK.
SOME OF OUR EXPRESSWAY RIGHT AWAY DON'T HAVE SEWER AND WATER.
[01:05:01]
WHY IF WE PUT THAT INFRASTRUCTURE IN, THEN IT BRINGS BIG BOX, THEN IT BRINGS SALES TAX, AND THEN WE CAN LOWER THE TAX RATE AND IT TAKES SOME OF THE BURDEN OFF OF THE RESIDENT.BUT WE, WE, FOR, WE GOTTA PLAY THE GAME REAL DECISION TO TELL ME HOW TO CONDUCT THE BUDGET TOWARDS IT.
WE HAVE A YEAR TO PLAY THE GAME.
SO, WELL, A AGAIN, MY QUESTION GOES TO THE POINT OF IF WE DO SOMETHING WITH THE RATE TO LOWER IT A LITTLE BIT, ARE WE GOING TO AGGRESSIVELY USE IT ENOUGH TO, UH, PROMOTE WHAT WE'RE DOING HERE IN THE COMMUNITY TO ATTRACT OTHER BUSINESS HOMES, ET CETERA? ARE WE GONNA AGGRESSIVELY USE THAT ENOUGH THAT THAT BECOMES REALLY, THE QUESTION IN MY MIND RIGHT NOW IS, WOULD WE USE THAT TO OUR ADVANTAGE OR WOULD WE JUST, YOU KNOW, HOW MANY PE HOW MANY PEOPLE ARE YOU? DIFFERENT QUESTION.
HOW MANY, HOW MANY OF YOU ARE HEARING PEOPLE COMPLAIN ABOUT THE TAX RATES? DOES ANYBODY COMPLAIN ABOUT TAX? THE ROADS? EVERYBODY COMPLAINS ABOUT THEIR TAXES.
ALSO BECAUSE THEY DON'T UNDERSTAND HOW IT WORKS.
YEAH, THAT'S THE APPRAISAL DISTRICT.
BUT YOUR CITY NEVER WANTS TO LOWER THEIR TAX RATE THEN YOU YEAH, WE ARE PARTIALLY RESPONSIBLE EVERY TAXING ENTITY AND THERE'S LIKE EIGHT OF 'EM IN THIS CITY.
IF YOU LIVE IN THE CITY LIMITS, TALK TO CAMERON COUNTY, UH, TALK TO THE PORTABLE SANTO NAVIGATION DISTRICT.
'CAUSE THEY'RE THE ONLY ONE THAT CHARGES YOU ZERO.
TALK TO DRAINAGE DISTRICT NUMBER THREE BECAUSE THEY'RE THE HIGHEST DRAINAGE DISTRICT TAXING ENTITY FROM 1, 2, 3, AND FOUR, NUMBER THREE.
WHY? WHAT ARE WE GETTING TALL TREES IN THE CANALS? FLOODING.
AND I'M JUST SAYING THIS OUT LOUD.
I'M NOT SAYING I'M SAYING IT BECAUSE WHEN I SEE THE TAX RATE GO UP, I'M LIKE, WHERE'S THE MONEY GOING? AND THAT'S WHAT THE PEOPLE SEE AND THAT'S WHAT I SAW BEFORE.
SO I'M TRYING TO BE REASONABLE, BUT I WANNA SEE IT BEING USED.
I DON'T, THERE'S, I CAN GO ON AND ON.
I AGREE WITH YOU COMMISSIONER.
I, I ABSOLUTELY, UH, IN THAT, YES, IF WE HAVE THIS FUNDING, WE DO NEED MONEY.
WE NEED TO DO, UH, WE NEED TO PUT A FIRE UNDER, UNDER EVERYBODY HERE TO USE IT AND GET STUFF DONE THAT NEEDS TO BE DONE.
AND, AND I, I THINK WE'VE BEEN BUILDING THAT, FRED'S BEEN BUILDING THAT STRUCTURE AND REALLY GLAD TO HAVE HIM ON BOARD TO SEE THAT WE BEGIN TO, TO DO A LOT OF THAT MORE AGGRESSIVELY THAN EVER BEFORE.
THAT WAS ONE OF THE THINGS THAT GOT ME ON THE COMMISSION TO BEGIN WITH RUN, WAS THE FACT THAT, OKAY, WE'RE IN GREAT FINANCIAL SHAPE, BUT THE CITY LOOKS LIKE CRAP.
SO WHAT ARE WE DOING SITTING ON MONEY WHERE WE SHOULD BE USING IT? CORRECT.
AND AND THAT ANSWERED YOUR QUESTION TOO, MAYOR, ABOUT YES, LET'S PUT A FIRE UNDER IT AND GET THIS STUFF DONE.
WELL, JUST, JUST A COUPLE OF COMMENTS BEFORE STEPHANIE, UH, CONTINUES.
AGAIN, JUST, YOU KNOW, I WANNA THANK DON FOR BEING HERE AND, AND GIVING THE PRESENTATION.
BUT IF YOU ALL RECALL AS PART OF HIS PRESENTATION, YOU KNOW, LOOKING AT OPPORTUNITIES FOR POSSIBLY ISSUING DEBT, HE, HE MENTIONED A, A WINDOW OF ABOUT SIX TO NINE MONTHS.
SO JUST GOING BACK TO THAT POINT, LOOKING AT THAT IN RELATION TO OUR BUDGET AND ALL THE OTHER THINGS THAT WE'RE, YOU KNOW, THAT WE'VE GOT GOING, WE'VE GOT, UH, AN OPPORTUNITY HERE TO REALLY TAKE A GOOD LOOK AT THIS SIX TO NINE MONTHS DOWN THE ROAD.
AND WE'RE GONNA BE IN A WAY BETTER POSITION THIS TIME NEXT YEAR TO, TO MAKE THAT DECISION ON THE TAX RATE.
UM, AND HOW IT RELATES TO DEBT OR THE ISSUANCE OF DEBT OR, YOU KNOW, HOW, HOW MUCH DEBT WE, WE RETIRE AND HOW WE TIE THAT INTO OUR CAPITAL IMPROVEMENT PROGRAMS THAT, YOU KNOW, THAT WE, THAT WE ARE GONNA PRESENT TO Y'ALL.
BUT ALSO WE WE'RE IN A UNIQUE OPPORTUNITY THIS TIME ALSO, BECAUSE WE STILL HAVE ARPA MONEY, WE STILL HAVE OPPORTUNITIES WITH THAT, THAT FUNDING, THAT FUNDING STREAM TO PUT SOME STUFF IN THE GROUND TO ACTUALLY DO SOME WATER AND SEWER, TO DO SOME DRAINAGE AND TO DO EVEN, YOU KNOW, TO DO SOME STREETS AND ACTUALLY BUY EQUIPMENT.
THIS IS A UNIQUE OPPORTUNITY TO, TO TAKE ADVANTAGE OF THAT SLACK IN OUR, IN OUR EVOLUTION AND HOW WE, HOW WE, THE REAL, THE REAL TESTAMENT IS GONNA BE HOW WE USE THAT, THAT MONEY AND HOW, HOW GOOD A STEWARDS WE ARE WITH THAT WINDFALL, BECAUSE THAT'S WHAT IT IS.
AND WE NEED TO, WE NEED TO PUSH FORWARD ON, ON THAT PART OF IT AND THEN COMMINGLE THAT WITH, UH, YOU KNOW, OUR FINANCIAL SITUATION, BOTH TAXES, DEBT, AND GROWTH.
BECAUSE ALL OF THOSE WORK TOGETHER.
AND, AND I AGREE WITH THE MAYOR POT, THAT THERE IS SOME, THERE IS SOME, UM, PUBLIC RELATION VALUE.
I THINK THERE'S A LOT OF PUBLIC RELATION VALUE TO TELL PEOPLE THAT WE'VE LOWERED TAXES.
[01:10:01]
AND I THINK WHAT I WAS GONNA PROPOSE TO THE BOARD IS GIVE, GIVE US A COUPLE OF YEARS, GIVE US THREE YEARS TO COME UP WITH A TAX RATE THAT IS GONNA NOT ONLY MEET OUR NEEDS FROM, FROM OUR OPERATIONS STANDPOINT, BUT ALSO MEET OUR NEEDS FROM PUBLIC RELATIONS.YOU KNOW, WE TALKED ABOUT BRANDING, WE TALKED ABOUT WHAT WE WANT THE CITY TO LOOK LIKE, WHAT WE WANT THE CITY TO FEEL LIKE.
AND I AGREE, YOU KNOW, THE PUBLIC, THE PUBLIC NEEDS THAT THE PUBLIC DESERVES, THAT I'VE DRIVEN THE STREETS, UH, THAT THE MAYOR'S TALKING ABOUT.
YOU KNOW, UH, I DROVE IT JUST THE OTHER, JUST YESTERDAY WITH, WITH, WITH DELOY.
AND YOU KNOW, THOSE STREETS ARE HORRIBLE.
UH, AND I KNOW WE'RE ON A, YOU KNOW, WE'RE, WE'RE ON THE RECORD HERE.
THOSE STREETS SHOULD NOT BE IN THAT, IN THAT CONDITION.
AND LIKE I SAID BEFORE ON THIS AND A FEW OTHER THINGS, IT FELL IN MY LAP AND I'M HERE, BUT I'M GONNA TAKE CARE OF IT AND I'M GONNA TAKE CARE OF IT WITH THE STAFF.
BUT YOU KNOW, UNFORTUNATELY, THIS DOESN'T HAPPEN OVERNIGHT.
WE CAN'T PROCURE SERVICES OVERNIGHT.
WE CANNOT, UH, PROCURE SERVICES USING FEDERAL ARPA MONEY OVERNIGHT.
THOSE, THOSE PROCESSES TAKE TIME.
AND WE WANNA MAKE SURE, EVEN THOUGH OUR ESTEEMED ATTORNEY'S NOT HERE, HE'LL TELL YOU WE, WE NEED TO COMPLY WITH ALL THAT.
AND THE LAST THING I WANTED TO SAY WAS, WE'RE IN THE PROCESS OF GETTING RERATED BY FITCH.
NOW THAT JUST ADDED A LITTLE MORE HEARTBURN TO MY AFTERNOON.
BUT YEAH, SO WE'RE GONNA, WE'RE GONNA HAVE THIS SAME PROCESS THAT WE WENT THROUGH WITH S AND P.
WE'RE GONNA DO IT WITH, WITH WITH FITCH.
AND IT'S GONNA BE THE SAME PROCESS.
WE'RE GONNA HAVE TO, WE'RE GONNA HAVE TO WALK THEM THROUGH WHAT OUR PLAN IS SO THAT WE CAN GET RERATED AGAIN TO HELP US GET CHEAPER MONEY IN THE FUTURE.
BUT THE BUDGET AND HOW WE RUN IT IS GONNA BE CRUCIAL TO HOW WE GO FORWARD BECAUSE DONNA IS RIGHT.
WE'RE BEING HELD TO A HIGHER STANDARD.
LIKE I TOLD Y'ALL, THIS IS GROWING PAINS.
WE'RE NOT THE LITTLE, YOU KNOW, WE'RE NOT THE LITTLE CITY ON THE BORDER THAT EVERYBODY FORGETS ABOUT.
NOW WE'RE ON THE RADAR AND WE WILL GET SURVEILLED.
AND WE NEED TO BE REAL CAREFUL HOW WE GO FORWARD WITH OUR BUDGET.
UH, BECAUSE AGAIN, IT'S ALWAYS, IT'S ALWAYS GREAT TO UNDER PROMISE AND OVER DELIVER, BUT THE OPPOSITE IS NOT GOOD.
AND THAT WILL HARM OUR, THAT WILL HARM OUR, OUR BOND RATING AMONGST OTHER THINGS.
SO IT KIND OF DEFEATS THE PURPOSE OF WHAT WE WANNA DO AND HOW WE WANT TO GO FORWARD.
SO, LIKE I SAID, LET US COME UP WITH A PLAN TO LOWER THE TAX RATE WHEN IT MAKES SENSE.
WE WILL BE WORKING CLOSELY WITH OUR FA AND OUR CFO AND, AND ALL THE STAFF IN, IN THE MEANTIME, WE'RE NOT SPINNING OUR WHEELS.
WE'RE GONNA PUT SOME STUFF IN THE GROUND, I GUARANTEE YOU THAT.
UM, BUT AGAIN, THAT'S WHAT WE'RE HERE FOR.
THIS IS, THIS IS THE PURPOSE OF THIS WORKSHOP TO DISCUSS ALL THIS.
AND I APPRECIATE ALL THE INPUT, ESPECIALLY INPUT FROM THE MAYOR PRO TEM, UH, BECAUSE I KNOW HE DOES HIS HOMEWORK AND HE KEEPS US ON OUR TOES.
BUT THEN AGAIN, I HAVE TO ANSWER TO THE MAYOR
SO I'VE GOT A, I'VE GOT A DELICATE BALANCE.
SO WE NEED TO MAKE SURE THAT WE ALL WORK TOGETHER.
AND IT GOES FOR THE DEPARTMENT HEADS TOO.
'CAUSE IF I ANSWER TO THE MAYOR, THEN YOU GUYS ARE GONNA ANSWER TO THE MAYOR THROUGH ME.
BUT, UM, BUT AGAIN, I JUST WANTED TO THANK EVERYBODY.
THANK DON, THANK UH, STEPHANIE FOR PUTTING THIS TOGETHER.
AND UH, I, I JUST WANNA ADD A POSITIVE SPIN TO THIS.
OKAY, WE'RE TALKING ABOUT REDUCING THE TAX RATE.
WE'RE NOT TALKING ABOUT INCREASING THE TAX RATE, ABOUT REDUCING.
AND THAT WE'RE SITTING HERE LOOKING AT, TALKING ABOUT REDUCING IT, THAT'S TREMENDOUS VERSUS HAVING THE NEED TO INCREASE IT.
SO THANK YOU VERY MUCH FOR THAT.
WELL, AND, AND THAT'S NOT TRUE TO MAYOR PRO TEMS POINT ALSO, IF THE, YOU SAW THE NO NEW REVENUE TAX RATE, IT TELLS YOU WHAT YOU NEED TO DO EXACTLY WHAT YOU DID LAST YEAR.
OKAY, WELL, WITHOUT BUILDING ANY MORE HOMES.
HOWEVER, IF I, AND JOANNA SAID SHE'S BUILDING A HUNDRED, YEAH, BUT THE COST OF LIVING ALSO WENT UP WHERE WE NEED TO INCLUDE, OR, OR INFLATION ON OUR HEALTH, VISION, DENTAL, WE NEED TO INCLUDE THE INFLATION OF, OR, UH, REPUBLIC SERVICES.
WE NEED TRASH OR TRASH SERVICES.
WE NEED TO INCLUDE A BARGAIN AGREEMENT THAT'S KNOCKING ON OUR DOORS SO WE CAN DO THE SAME AS WE DID LAST YEAR, BECAUSE THE EXPENSES ARE GONNA GO UP.
LIKE IT'S NOT GONNA COST THE SAME A YEAR AGO FROM NOW.
LIKE THERE'S A LOT OF DIFFERENT ASPECTS THAT WE NEED TO LOOK INTO, LIKE, OR IF WE WERE TO DO THAT, UM, UM, IT'S LIKE WE'RE, WE'RE DOING THE SAME THING THAT WE DID LAST YEAR AND DID WE LIKE WHAT WE DID LAST YEAR OR DO WE WANT TO DO BETTER? THAT'S, THAT'S THE QUESTION TOO.
AND YEAH, AND YOU HAVE TO UNDERSTAND THAT, YOU KNOW, UH, EVERYTHING'S GOING UP AND, AND IN A SENSE, THE INSURANCE, UH, UH, I
[01:15:01]
DON'T UNDERSTAND ALL OF IT.WINDSTORM, ALL THAT INSURANCE IS COMING UP AND, AND THOSE ARE SOME, SOME BUILDINGS THAT, THAT WE HAVE OUR CITY OWNED THAT WE DIDN'T HAVE INSURANCE.
WELL, NOW IT GOT, IT FELL THROUGH THE CRACKS ON IT.
WELL, NOW WE'RE GONNA HAVE TO, YOU KNOW, UH, INSURE THOSE, UH, THOSE BUILDINGS.
EVERYTHING'S SO, SO EXPENSIVE ON THAT.
SO WE HAVE TO, YOU KNOW, LOOK AT IT AGAIN, WE HAVE TO LOOK AT EVERYTHING.
AND I WISH THAT, YOU KNOW, THAT CONTINUE, LIKE I SAID, I, I CAN BE WITH THEM.
S**T TO ME IS LIKE I SAID, OH, GET RID OF ALL THE TAXES.
BUT YOU CAN'T, NOT RIGHT NOW, BECAUSE WE'RE STILL IN GROWING PAINS.
WE HAVE SO MUCH NEED ON THE CITY THAT HAS BEEN LACKING FOR ALL THIS DECADES.
THAT'S THE MOST IMPORTANT THING WE HAVE BEEN LACKING FOR DECADES.
WELL, NOW, THIS COMMISSION, WHEN WE CAME IN, WE SAID, OKAY, WE'RE GONNA BE LOOKING INTO AND, AND TAKING CARE OF, UH, UH, THE PEOPLE, THE ELDERS AND, AND EVERYBODY ELSE THAT HAS BEEN HERE.
AND THAT'S WHAT, THAT'S WHAT I WANNA DO.
AND I BELIEVE THAT'S WHAT THE, YOU KNOW, THE COMMISSION IS FOR HERE.
THAT WE WANT TO GIVE A BETTER LIVING AREA DESTINATION EVERY, UH, YOU KNOW, DISTRICT HERE IN SANTO FOR EVERYBODY.
SO LIKE I SAID, UH, THAT'S, THAT'S ALL I CAN SAY.
ANY OTHER THINGS? COMMISSIONERS? NOTHING.
WELL, THIS IS ONLY A DISCUSSION ON, UH, ITEM ONE.
SO ITEM NUMBER TWO, UH, CITY MANAGER.
YEAH, MAYOR, IT'S THE PRESENTATION OF THE BUDGET.
OKAY, SO IT'S GONNA BE, YES SIR.
SO, UM, I KNOW I WENT BACK AND FORTH WITH HIS SLIDES 'CAUSE IT KIND OF FELL INTO WHAT WE WERE DISCUSSING WITH THE TAX RATE, BUT I'LL, I'LL START FROM THE BEGINNING.
SO, UM, A CONVERSATION WITH CITY ADMIN, I MEAN THE CITY MANAGER, WE KINDA ALLOCATED THE KEY POINTS AFTER I KNOW YOU, UH, THE COMMISSION AND CITY ADMINISTRATION HAD FEW BUDGET WORK, NOT BUDGET WORKSHOP, BUT WORKSHOPS AND SOME KEY POINTS WERE, WERE MENTIONED.
UM, AND I FEEL LIKE THAT'S THE KIND OF LIKE THE, THE, THE WAY OR BUDGET IT'S LEANING TO, UH, IMPROVING THE QUALITY OF LIFE REBRANDING OR CITY AND DEVELOPMENT OF HUMAN CAPITAL WHEN IT COMES TO OUR CITIZENS AND ALSO OUR OR EMPLOYEES.
UM, SO I HAD A LITTLE BIT OF DESCRIPTION, WHAT IS IT THAT WE'RE LOOKING, WE'RE LOOKING FOR AND WE WANNA IMPROVE, UH, WITH THIS BUDGET WITH, OF COURSE A LOT OF HELP WITH THE CM BECAUSE HE'S THE ONE THAT DISCUSS IT WITH YOU ALL.
UM, THE NEXT SLIDE, IT'S THE BUDGET APPROACH.
AND THIS IS JUST KIND OF LIKE A SUMMARY OF EVERYTHING THAT'S TAKING PLACE IN THIS BUDGET.
UM, WE DID DO A 3% OVERALL INCREASE TO ALL STEADY EMPLOYEE SALARIES, UM, JUST TO BE TAKING CARE OF THE COST OF LIVING INCREASES.
AND THAT'S LIKE THE COMMON PRACTICE WE'VE BEEN DOING THAT FOR, FOR A FEW YEARS ALREADY.
UM, AS YOU MAY BE AWARE, THERE'S A POLICE BARGAIN AGREEMENT, UM, COMING.
WE DID BUDGET FOR THAT AT A REALLY, UH, GENEROUS LEVEL IN ORDER FOR, UH, IF WHENEVER THIS HAPPENS, WE'RE GOOD TO, WE'RE GOOD TO GO WITH THE BUDGET ASSIST.
WE DON'T NEED TO KIND OF LIKE SEE WHERE WE'RE GETTING REVENUE TO OFFSET THAT.
SO IT IS INCLUDED IN THIS BUDGET.
UM, WE ALSO TOOK IN CONSIDERATION THE HEALTH INSURANCE, UH, RATE INCREASE.
IT'S NOT LOOKING LIKE IT'S GONNA BE A LOT.
WE HAVEN'T HAD THE FINAL NUMBERS JUST YET BECAUSE THEY WAIT TILL THE END OF JULY.
UM, SO PROBABLY THIS WEEK, AT THE END OF THIS WEEK, THEY'RE GONNA SEND THEM.
BUT BECAUSE WE HAVE THE BUDGET WORKSHOP, IT'S ALSO INCLUDED AT, UM, A LITTLE BIT HIGHER, UM, EXPENSE BECAUSE WE DON'T WANT FOR IT TO, LIKE, WHENEVER IT COMES TO, WHENEVER THEY COME IN, PERCENT THE NEW, THE NEW RATES COME NEGATIVE TO THE, TO OUR BUDGET.
UM, WE ARE, AS I MENTIONED, PROVIDING HEALTH DENTAL VISION AT A HUNDRED PERCENT THE WAY WE DID LAST YEAR.
SO THAT'S INCLUDED ALSO IN THIS BUDGET.
AND THAT KIND OF LIKE TARGETS A LITTLE BIT OF OUR CAPITAL.
UM, WHAT MENTIONED BEFORE, DEVELOPMENT OF HUMAN CAPITAL HERE, UM, WITH OUR FOR EMPLOYEES, THAT ALSO MEANT MOST OF THEM CITY OF SAN RESIDENCE.
UM, THIS BUDGET DOES TAKE IN CONSIDERATION LEAVING THE TAX RATE AS THIS.
UM, I KNOW WE'RE, WE'RE KIND OF USED TO, AND WHAT I'VE BEEN SEEING, IT'S LIKE AROUND A 3% INCREASE FROM BUDGET TO BUDGET THIS YEAR.
WE'RE, WE'RE TAKING A LITTLE BIT MORE OF A 6% INCREASE JUST TO TAKE CARE OF THE STUFF THAT WASN'T
[01:20:01]
TAKEN IN THE PAST.SO IF YOU SEE SOME, FOR EXAMPLE, WE DIDN'T HAVE DEMOLITION EXPENSE.
WE, WE NEED TO, WE NEEDED TO HAVE INCLUDED THAT.
SO, UM, A LOT OF ADDITIONAL RESOURCES THAT WERE NEEDED FOR SPECIFIC DEPARTMENTS WERE INCLUDED THERE.
AND THAT'S WHY YOU'RE SEEING THAT.
UM, THEN AGAIN, REVENUE IS BASED ON DATA AND CONSERVATIVE EXPECTATIONS AS MENTIONED.
UM, ON THE OTHER SIDE, ON THE ENTERPRISE FUND, WHICH IS OUR WATER SOLID WASTE COLLECTION, UM, WE ARE FOLLOWING OUR WATER STUDY.
I DON'T KNOW IF YOU RECALL, IN 2022, WE HAVE THIS WATER STUDY WHERE THEY, UM, CAME, DID AN ANALYSIS AND GAVE US A 10 YEAR, BELIEVE IT WAS A 10 YEAR PLAN FOR WHEN TO INCREASE COMMERCIAL RESIDENTIAL WATER RATES TO BE, TO BE GOOD TO, FOR, FOR THE, FOR THE WATER TO, TO DO GOOD.
THAT'S TAKEN CARE, THAT'S IN CONSIDERATION WITH THE REVENUE SITE.
UM, IT'S ALSO, UM, THE HIGHEST AMOUNT, UH, OR TRASH, UH, CONTRACT COULD GO UP.
SO THAT'S ALSO INCLUDED IN THIS BUDGET.
SO IT'S TAKING IN CONSIDERATION, ALTHOUGH UPCOMING EXPENSES THAT WE WE'RE GONNA FORESEE, BUT IT'S, IT'S DOING IT GENEROUSLY.
SO WHEN THEY COME, THE BUDGET CAN NEED OF IT, IF ANYTHING LOOK EVEN BETTER.
SO, SO THAT'S KINDA LIKE A, LIKE A SMALL SUMMARY OF HOW THIS BUDGET WORKED.
UM, THIS IS WHAT WE PREVIOUSLY DISCUSSED.
I ADDED IT THERE, UM, BECAUSE THAT'S WHAT NORMALLY GETS POSTED IN THE NEWSPAPER SO EVERYBODY KNOWS.
UM, FOLLOWED BY THAT I ADDED THE WAY WE'VE BEEN DOING IT.
I KNOW IT'S BEEN STAGNANT FOR THREE YEARS, BUT AGAIN, WE'VE, WE JUST HAD THE DISCUSSION ABOUT THE, THE TAX OR COMPARISON.
UM, THIS IS THE ANNUAL BUDGET COMPARISON.
THIS IS THE LAST FOUR YEARS, UM, OF BUDGET.
SO ACTUAL REVENUES VERSUS EXPENSES, ACCURATE REVENUES VERSUS EXPENSES FROM 2122.
BY THE WAY, IT'S THIS BOOKLET LITTLE, THIS LITTLE BOOKLET RIGHT HERE.
THE ONE THAT HAS THAT INFORMATION.
I KNOW I HAVE IT ON THE SCREEN, BUT SORRY I DIDN'T MENTION IT, BUT IT'S, IT'S THIS BOOKLET RIGHT HERE.
UM, SO THAT'S WHAT WE'VE BEEN DOING YEAR BY YEAR.
UM, AND SO THE FIRST TWO YOU SEE IT, THAT'S WHAT WE'VE ACTUALLY HAVE, UH, LEFT IN, IN POSITIVE AND 23 IS 24.
WE ALWAYS BUDGET FOR LIKE, OKAY, IT'S GONNA BE A LITTLE BIT, BUT THEN WE END UP DOING BETTER THAN WE EXPECTED.
AND THAT'S WHAT'S SOMETHING THAT I WAS MENTIONING.
WE WERE ABLE TO KEEP UP OUR FUND BALANCE BECAUSE WE DID THAT PRIOR YEARS TOO.
SO RIGHT NOW OUR BUDGET SHOULD BE AT A 75%, WE'RE AT 70%, SO THAT'S 5%, UH, UP TO JUNE.
SO THAT'S 5% THAT WILL WILL BE THERE, IF THAT MAKES ANY SENSE.
SO FOLLOWED BY THAT, I DID THE REVENUE BY SOURCE AND ALL OF THIS IS ALSO INCLUDED IN THE BIG BOOKLET THAT I PROVIDED YOU.
THAT WHEN IT'S BY DEPARTMENT HAS A TABLE OF CONTENTS, HAS A BRIEF EXPLANATION OF EACH DEPARTMENT, AND IT'S ALSO, UM, IT TELLS YOU EXACTLY WHAT THEY'RE BUYING AT A DETAIL.
AND UM, IT GIVES YOU THE AMOUNT OF SALARIES, OVERTIME, EVERYTHING THAT'S BEEN BUDGETED BASED ON, UM, CONVERSATIONS WITH DEPARTMENT HEADS, BUT ALSO HISTORICAL DATA FROM THE CURRENT YEAR, THE FIRST SIX MONTHS.
AND THEN WE'LL MOVE FORWARD WITH THAT.
UM, THIS IS WHAT WE'RE EXPECTING FOR THE REVENUES TO INCREASE.
AND THAT'S, UM, BELIEVE IT OR NOT, AT, AT THE BEGINNING, AT THE FIRST BUDGET WORKSHOP THAT WAS, I WAS BEING A LITTLE BIT MORE CONSERVATIVE, UM, BUT IN LIGHT OF LIKE, OH, THE AMOUNT OF EXPENSES AND WHAT WE WANNA DO AND THE WAY WE WANNA MOVE OR CITY FORWARD, UM, I I PUT IT A LITTLE MORE REALISTICALLY, WHICH IS WHAT WE WERE DOING, UM, FOLLOWED BY THAT I I ADDED A, A PIE CHART SO WE CAN KINDA SEE MORE OF IN A GRAPHIC WAY, WHAT IS IT THAT BRINGS A REVENUE, UM, EVERY YEAR AT OUR BUDGET AND AS MUCH AS WE DON'T LIKE IT, UM, OR PROPERTY TAXES IS THE MAIN REVENUE, UM, SOURCE.
THEN, UH, EXPENSES BY DEPARTMENT, THIS IS KIND OF LIKE THE ONE THAT I PROVIDED LAST BUDGET WORKSHOP.
IT, IT TELLS YOU WHO INCREASE, WHO DECREASE TOTAL AMOUNT, LIKE I MENTIONED OF A 6%.
UM, AND THEN REVENUES O OVER EXPENSES.
AND THAT'S WHAT WE'RE EXPECTING.
UM, ONE OF THE THINGS THAT WE, WE'VE BEEN GETTING PREPARED FOR THAT CALL THAT MR. SANDBAR WAS MENTIONING WITH FITCH, IT'S TO ADD TO OUR FUND BALANCE.
SO EVERY BUDGET AT AT LEAST THE ONES THAT I WORKED ON THEIR, THEIR, WHICH IS LAST YEAR AND THIS YEAR, WE'RE KINDA ADDING A LITTLE BIT TO OUR FUND BALANCE WHEN IT COMES AT THE END OF THE BUDGET.
SO, UH, THIS ONE IS REFLECTING THAT TO
IF YOU HAVE QUESTIONS AND DEPARTMENTS,
[01:25:01]
UM, YOU DO HAVE YOUR, YOUR DETAILS IN THE BIG BOOKLET PROVIDED OR YOU HAVE ALL OUR DEPARTMENT HEADS HERE,THIS ONE REFLECTS WHERE OR MOST OF OUR EXPENSES COME FROM.
AND YES, IT WILL SERVICE, UH, FIRE AND PD, TAKE A LITTLE BIT MORE OF THAT, BUT OF COURSE, UM, THEY'RE, THEY'RE THE ONES THAT ARE KEEPING US SAFE.
AND THEN YOU KIND OF SEE THAT CITY, CITY MANAGEMENT BEING A LITTLE BIT BIG AS WELL, BUT THAT'S BECAUSE SOME OF THE, UH, BOND PAYMENTS ARE ALLOCATED TO THAT DEPARTMENT.
THAT'S WHY THAT LOOKS LIKE THAT.
AND THEN THANKS FOR THAT, THAT I'LL, I'LL STOP RIGHT THERE.
AND THEN MOVING FORWARD, I DID KIND OF LIKE A SMALL SLIDE FOR ENTERPRISE.
UM, SO WE CAN HAVE THAT ALSO ON THE SCREEN.
AND I KNOW IT WASN'T IN THE PAST LIKE A PRESENTATION, BUT THIS IS A BIG BOOKLET AND IT'S, AND IT'S A LOT TO, TO PUT IN.
AND I WANTED TO MAKE SURE ALL THE KEY POINTS WERE, WERE THERE FOR, FOR EVERYBODY TO SEE QUESTIONS ON THE GENERAL FUND BEFORE I MOVE FORWARD.
THIS IS, THIS IS A LOT OF, UH, DISCUSSION WITH THE INDIVIDUAL DEPARTMENTS AND THEY'VE ALL HAD INPUT, I ASSUME HERE GOING FORWARD AND WHAT, WHERE THEY'VE BEEN, WHERE THERE ARE AND WHERE THEY'RE GOING.
AND, AND SO THAT'S ALL IN THE DETAILS HERE.
SO, UM, IN THE DETAILS, IF YOU WERE TO OPEN ONE OF THE PAGES, YOU SEE WHAT IT WAS BUDGETED LAST YEAR, BUT IT'S BUDGETED THIS YEAR.
UM, AND THEN IF THERE IS AN INCREASE, UM, THEN THAT'S WHEN IT WILL POP OUT A QUESTION, WHY IS THERE AN INCREASE ON THE DETAILS ISSUE TELLS YOU WHAT CHANGED FROM ONE TO THE OTHER.
STEPHANIE, THANK YOU VERY MUCH FOR THAT.
IT WASN'T ONLY ME, MR. SANDO, I HELPED A LOT AND ALSO THE STAFF, UH, FINANCE DEPARTMENT WORK WERE HARD FOR, FOR THIS ONE.
I'LL MOVE FORWARD WITH THE WATER FUND FUND NUMBER FOUR.
UM, AS MR. DON MENTIONED, YOU DO SEE MONEY THERE.
FINALLY, WE, WE ARE ABLE TO SEE THAT THERE'S, UM, MONEY THERE.
SO, UM, I KNOW IT WAS BROUGHT UP THAT BECAUSE WE'RE, WE'RE KIND OF ALLEVIATED A LITTLE BIT FROM THE DEBT THAT WE HAD BECAUSE SOME OF THE BONDS WERE MATURING.
HOWEVER, IT'S ALSO SMART TO START PUTTING A FUND BALANCE TO THE ENTERPRISE FUND.
AND THAT'S WHAT THIS BUDGET KINDA IMPLIES.
ADDING THAT TYPE OF AMOUNT, 644,007, 715, UM, EXPECTING REVENUES OVER EXPENSES TO START BUILDING A FUND BALANCE FOR THE, FOR THE WATER BECAUSE IT'S NEVER BEEN BUILT AND OR WE'VE NEVER HAD THE CAPACITY TO ACTUALLY START PUTTING MONEY INTO A POND WHERE WE COULD SAY IF WE NEED IT, IT'S THERE, HAVE RESERVES ONLY FOR THEM.
UM, AS ASIDE FROM LIKE TAKE IT AS A SEPARATE ENTITY AND HAVING BUILD A LITTLE BIT OF FUN BALANCE, I DO AGREE THAT THE MI THE MARKET MIGHT BE, MIGHT LOOK BETTER IN NINE MONTHS.
UM, HOWEVER, I DO FEEL WE DO HAVE ARPA MONEY AND UH, IF YOU RECALL OR ARPA PRESENTATION, IT INVOLVED A LOT OF WATER, WATER, UH, UPDATES, WATER INFRASTRUCTURE.
UM, AND I WOULD, AND A FINANCE PERPE PERSPECTIVE POINT, I WOULD SUGGEST FOR US TO EXCEED THAT MONEY, USE IT FIRST AND THEN START LOOKING INTO GETTING MORE MONEY.
BECAUSE THE MONEY WE HAVE, WE NEED TO ALLOCATE TO PROJECTS AND START USING IT.
AND AS MENTIONED, MR. SANDAL, THERE'S A LOT OF PROCUREMENT BEHIND IT.
SO A BIG PROJECT REQUIRES A LOT OF PROCUREMENT, A LOT OF TIME INVEST.
AND I FEEL LIKE BECAUSE OF THE TIMEFRAME THAT WE HAVE WITH THE ARPA, WE NEED TO FIRST FOCUS ON USING THOSE AND THEN START LOOKING INTO HOW THE FUTURE IS GONNA LOOK.
AND I RECALL FROM THAT, UM, PRESENTATION 'CAUSE I, BEFORE THIS PRESENTATION, I HAD CONVERSATION WITH MR. DON AND I EXPLAINED TO HIM AND I WAS LIKE, HEY, WE KIND OF KIND OF WANNA MORE LEANING TO THE FUND BALANCE, PUTTING A LITTLE BIT TO OFFEND BALANCE USING YOUR ARPA MONEYS.
UH, IT DOES LOOK LIKE 20 27, 20 28.
THE RATES ARE GONNA GET BETTER BASED ON THE MARKET.
SO AGAIN, THIS IS JUST MY SUGGESTION, BUT IT'S UP TO UP TO UP TO COMMISSION AND CITY MANAGEMENT WHERE THEY WANNA TAKE THE DIRECTION FOR THE CITY.
UM, SO JUST JUST TO KEEP THAT LITTLE NOTE IN MIND, I, I KNOW WE DON'T NEED TO GET INTO THE WEEDS HERE, BUT WHERE'S THE INCREASE COMING FROM ON THE WATER FUND THIS YEAR? WE, WE, UH, MATURE OF DEBT.
OKAY, SO, SO THE, WHAT HE WAS MENTIONED THAT THE DEBT DROPPED, IT DROPPED ON THE WATER SIDE.
SO THAT'S WHY YOU DON'T SEE IT THAT
[01:30:01]
EXTREME ON THE GENERAL FUND, BUT YOU DO SEE IT ON THE WATER BECAUSE LIKE HE MENTIONED AT THE TIME WHEN THE BONDS WERE ISSUED, THERE WERE SEPARATE, UM, FINANCES SOURCES ONE, SOME FOR WATER, EDC, UM, AND UM, SALES TAX.SO THE BONDS AFFECTED THE WATER FUND.
SO THERE TOTAL CHARGES FOR SERVICES DOESN'T REALLY REPRESENT THE TOTAL CHARGE.
IT'S THE AMOUNT CHARGED LESS THE DEBT SERVICE, THAT'S THE AMOUNT THAT WE DO COLLECT FROM WATER.
THIS IS TAKING INTO ACCOUNT THE NEW RATES.
UM, IT'S THAT, THAT JUST LOWERED THE AMOUNT OF EXPENSES, UM, THE DEBT SERVICE.
SO IT, IT ALLOW IT TO CREATE REVENUE OR FUND BALANCE IN THAT CASE.
THESE, THESE ARE THE FUNDS THAT A MILLION DOLLARS CAME OUT OF EXPENSES, RIGHT? FOR SOME DATA PROCESSING.
AND, UM, BASED ON THE NEED AND THEN LOOKING AT AFTER, LIKE THE AMOUNT THAT WE HAD BUDGETED LAST YEAR, AND YOU'RE GONNA SEE THIS IN THE, IN THE DETAILS, UM, WE DID KINDA INCREASE THEM A LITTLE BIT JUST BECAUSE IT'S SMART TO HELP TO CHARGE WHATEVER THEY'RE, WHATEVER WE'RE PUTTING FOR THE WATER BECAUSE THEY TOO, THEY DO TAKE ADVANTAGE OF PROCUREMENT.
THEY DO TAKE ADVANTAGE OF MYSELF.
I STILL DO FINANCIALS FOR THEM.
UM, THE CITY MANAGER, IT'S ALSO INVOLVED.
SO YOU MIGHT SEE A LITTLE BIT OF AN INCREASE OF THE AMOUNT THAT WE WERE PAYING BECAUSE I REMEMBER LAST YEAR THE WAY THEY WERE LOOKING, THEY WERE LOOKING LIKE THEY WERE NOT GONNA MAKE ENOUGH TO BE AFLOAT.
SO THAT'S WHY WE REDUCED SO DRASTICALLY THE EXPENSES, UM, THE CHARGES THAT WE WERE CHARGING THEM.
SO, BUT THIS YEAR IT'S A LITTLE BIT MORE, IT'S STILL A REALLY CONSERVATIVE AND NOTHING LIKE IT WAS IN THE PAST BECAUSE WE DO WANNA BUILD THAT FUND BALANCE, BUT IT'S A LITTLE BIT HARD.
I JUST WANTED TO POINT THAT OUT IN CASE IT GETS YOU OFF GUARD.
WE DID INCREASE IT A LITTLE BIT, THE STUDY BEHIND IT.
SO, UM, THAT'S, THAT'S A REASON WHY ON FUND NUMBER SIX, SAME THING.
WE'RE, WE'RE ABLE TO SEE, WE'RE ABLE TO SEE THAT, UM, THAT DEBT SERVICE, NOT, NOT, UH, HELPING US OUT TO BUILD A LITTLE BIT MORE OF A FUND BALANCE.
THAT'S SUN FUND FIVE, WHICH IS WASTE WATER.
AND THEN ON FUND SIX, THE SOLID WASTE, UH, WE ARE TAKING CONSERVATION, THE INCREASE OF OUR GARBAGE RATE WHEN IT COMES TO THE AGREEMENT WE HAVE WITH REPUBLIC SERVICES.
SO WE'RE NORMALLY USED TO SEE LIKE A FOUR FOUR, I BELIEVE THE TOPS IT'S 4%.
NORMALLY IT'S LIKE A 3.8, BUT AS PER THE CONTRACT, THAT'S AS HIGH AS THEY CAN GO.
SO WE, WE BUDGETED FOR A HIGH, AS HIGH AS THEY CAN GO, EXPECTING THAT IT'S LESS.
UM, IF YOU HAVE ANY QUESTIONS TO, UM, IF YOU WANNA KINDA LIKE LOOK OVER THE BUDGET AND SEE IF SOMETHING POPS OUT TO YOU THAT YOU MIGHT WANNA, HOW, HOW MANY PAGE, HOW, HOW MANY PAGES IS THIS THAT WE, WE NEED TO GO THROUGH STILL? LIKE 600 AND 640, 49, 59.
OKAY, THIS AGAIN STEPHANIE, THIS IS VERY WELL ORGANIZED.
IT'S GREAT TO SEE THIS IN THIS FASHION.
IT MAKES IT MUCH MORE DIGESTIBLE.
YEAH, STEPHANIE, I LIKE TO SAY THANK YOU THIS AND TO EVERYBODY FRED, FOR PUTTING THIS TOGETHER.
IT DOES MAKE IT A LOT EASIER TO MANEUVER AND GO THROUGH TO FIND OUT ANY QUESTIONS YOU HAVE.
I, I HAVE A QUESTION AND I KNOW I'VE TALKED TO UH, FRED ABOUT IT.
WE HAD ALL THESE ORGANIZATIONS COME TO US AND CDBG COULDN'T FUND THEM AND WE HAD THIS TALK ABOUT WHAT CAN WE DO AS A CITY, UM, TO HELP MAYBE POSSIBLY BUDGET SOME OF THEM INTO OUR FUNDS.
'CAUSE I'M LOOKING HERE AT THE WHAT RECREATION DEPARTMENT AND I SEE THAT WE WENT UP TO 300,000 FOR CITY EVENTS, WHICH WE ONLY HOLD A COUPLE A YEAR.
UM, I WOULD LIKE TO SEE MAYBE USE, UTILIZE THAT TO GIVE LIKE TO OUR FOOD PANTRY, UM, OUR FURRY FRIENDS, UM, THE LIBRARY FRIENDS WITH THE LIBRARY TO HELP HELP THEM FACILITATE AND HELP OUR COMMUNITY.
'CAUSE THEY'RE ALL THREE ENTITIES ARE DOING A MARVELOUS JOB HERE HELPING US.
AND THESE ARE THE SAME CITIZENS IN EACH OF THESE ORGANIZATIONS THAT ARE VOLUNTEERING THEIR SERVICES TO, YOU KNOW, HELP OUR COMMUNITY.
[01:35:01]
I MEAN THAT FOOD PANTRY HAS OVER 6,200 PEOPLE THAT THEY SERVE.UM, IS THAT FEASIBLE TO DO? OR, OR CAN WE DO THAT, FRED? THE SHORT ANSWER IS YES, BUT THE LONG ANSWER IS, UM, IF WE OPEN IT UP TO ONE ORGANIZATION, WE'RE GONNA, WE'RE GONNA, IT'S GONNA KIND OF TURN INTO THE SAME THING AS CDBG.
UM, WHAT I WAS PROPOSING TO THE, TO THE BOARD AND TO THE MAYOR WAS, UH, UM, AND, AND SOME OF THEM, LET ME BACKTRACK A LITTLE BIT.
SOME OF THEM ARE ALREADY PART OF THE PROCESS AND THE BUDGET AND, AND I'LL GIVE YOU AN EXAMPLE.
FRIENDS OF THE LIBRARY, THEY'RE ALREADY EMBEDDED INTO OUR BUDGET, UH, $5,000 TO THEM.
WE PUT IT IN THE LIBRARY BUDGET.
UM, COULD BE OFFSET WITH GRANTS, COULD BE OFFSET WITH EVENTS, COULD BE OFFSET WITH A LOT OF DIFFERENT THINGS.
AND THAT'S BASICALLY ALL THEY NEED.
UH, YOU GET THE FOOD BANK FOR EXAMPLE, THAT'S KIND OF A DIFFERENT SITUATION.
AND WHAT I HAD PROPOSED WAS, UH, POSSIBLY, YOU KNOW, SPONSORING AN EVENT WITH THEM AS THE BENEFICIARY.
SO IT'S NOT NECESSARILY A DIRECT ALLOCATION FROM THE BUDGET MM-HMM,
BUT IT IS AN ALLOCATION THAT WE CAN SPONSOR, UH, EITHER THROUGH AN EVENT OR, UH, WHAT WE'RE GONNA BE DOING AT THE, UH, AT THE FAIRGROUNDS HERE SOONER THAN LATER.
UH, AND I, THAT'S, THAT'S WHERE I SEE THE, THE, THE, THE BIG OPPORTUNITY.
UH, THESE ARE NONPROFITS, THEY CAN TAKE ADVANTAGE OF THAT NONPROFIT STATUS AND WE CAN, WE CAN FORMULATE OR CRAFT AN EVENT OR EVENTS FOR THEM SO THAT THEY CAN, SO THEY CAN MAKE SOME MONEY AND IT'LL BE UNDER THE AUSPICES OF THE CITY OR THE EDC OR BOTH, DEPENDING ON WHO'S RUNNING THAT PARTICULAR PROJECT.
AND, UH, THEY GET WHAT THEY WANT IN THE END, WHICH IS ASSISTANCE.
SO WE DON'T NECESSARILY HAVE TO BUDGET FOR IT DIRECTLY.
AND IT'S STILL, IT'S, WE STILL, WE STILL ACHIEVE THE SAME GOAL, WHICH IS HELPING THEM BECAUSE AGAIN, CDB G'S A LITTLE BIT STRICT.
NOT EVERYBODY'S GONNA QUALIFY.
AND THEN, YOU KNOW, AGAIN, GOT SOME PLANS FOR THAT ONCE, UH, SOME OF THE DEBT IS RETIRED ON THAT, UH, WE'VE TALKED ABOUT POSSIBILITY OF USING IT FOR COMPLETELY FOR STREETS, UH, USING IT COMPLETELY FOR, UH, OTHER QUALITY OF LIFE PROJECTS.
WE TALKED ABOUT A POOL, MAYBE A SPLASH PAD IN A POOL.
BUT THOSE ARE THINGS THAT ARE, THAT ARE COMING IN THE FUTURE.
UH, BUT, YOU KNOW, UH, IT'S A, IT'S AGAIN, IT'S A VALUE JUDGMENT AND IT'S GONNA BE UP TO THE BOARD AND THE COMMISSION TO DECIDE WHAT THEY WANT TO DO.
WE'RE GONNA PRESENT THE OPTIONS, WE'RE GONNA PRESENT THE OPPORTUNITIES ON HOW TO PAY IT AND WE'LL GO FROM THERE.
BUT, YOU KNOW, GOT A LONG LIST, A SWIMMING POOL, CINEMA.
REALLY? MARY, I REMEMBER YOU SAID THAT WE HAD A POOL AND THAT WE NEEDED A POOL, BUT WE HAD THREE.
OKAY, WELL THEN I'M, I'M JUST, I'M JUST JUST PROPOSING ONE.
BUT THE POINT IS, IS THAT WE WANT TO, WE WE'RE GOING BACK TO THE ISSUE ABOUT BRANDING.
WE'RE GOING BACK TO THE ISSUE ABOUT QUALITY OF LIFE.
AND IT'S A LITTLE BIT OF EVERYTHING, MAYOR.
AND OF COURSE STREETS ARE A BIG IMPORTANCE.
SO IS WATER, SO IS DRAINAGE AND IT'S MY JOB TO BE THE DANCING BEAR ON THE BALL AND MAKE SURE THAT I, UH, BALANCE ALL THAT FOR YOU GUYS.
SO THAT'S MY, THAT'S MY PLEDGE.
GIMME, UH, DREW ME A, WELL, I GUESS FROM CHINA.
BRING IT OVER HERE AND THEN WE CAN THROW, WELL, ANYTHING YOU WANT.
DIDN'T SAY WE'D DO IT TOMORROW, MARY.
REMEMBER WE'RE STILL IN THE DROUGHTS.
UM, IF I ADD, UM, I ADDED ALSO A SMALL, UH, LITTLE BOOKLET WITH THE CAPITAL IMPROVEMENTS FOR EACH DEPARTMENT.
THAT WAY IT'S KINDA LIKE, LIKE A WISHLIST TYPE OF THING.
SOME OF 'EM DO HAVE, UM, WHAT TO CALL MORE OF A REALISTIC APPROACH.
UM, SO JUST FOR US TO KNOW WHAT, WHAT IS IT THAT EACH DEPARTMENT IS NEEDED AND MAYBE AT TIMES OF ISSUANCE OF DEBT, THOSE CAN BE BROUGHT UP TO THE TABLE AND REDISCUSSED AND SEE WHICH ONES SHOULD BE FEASIBLE TO USE THAT DEBT FOR.
SO THAT'S, THAT'S FOR YOUR, FOR YOUR, I GUESS READING FREE TIME
ANY OTHER QUESTIONS? COMMERS? YES.
UM, UH, FRED, YOU AND I HAVE TALKED ABOUT A, UM, BRANDING AND WORKING ON BRAND.
UH, WE RECEIVED A, HAVE WE RECEIVED A PROPOSAL ON THAT? NO SIR.
AND, AND I, I JUST WANNA MAKE SURE THAT THAT'S WORKED IN AND IN THE BUDGET HERE TOO, SOMEWHERE SO WE CAN LOOK AT THAT BRAND.
[01:40:01]
YES, SIR.I, I'M NOT SURE WHETHER IT WOULD COME UNDER HOTEL TAX COLLECTION, WHICH I THINK THAT'S PROBABLY WHERE IT MIGHT BEST BE.
PROBABLY NOT UNDER PUBLIC RELATIONS, BUT IT'D BE, IT'D BE UNDER HOTEL MOTEL, UH, TAX AND PROBABLY EDC.
AND WE'D BE THE BENEFICIARIES OF THAT.
THEN ANOTHER LITTLE THING THAT I ADDED THERE TO THOSE CAPITAL IMPROVEMENTS TO YOUR RIGHT BOTTOM RIGHT NEXT THE CORNER.
THERE'S ALSO LIKE THE MAJOR THINGS THAT THE, UM, DEPARTMENTS ACCOMPLISHED.
WE MIGHT NOT BE ABLE TO SEE THEM RIGHT AWAY, BUT THIS IS KIND OF LIKE A REMINDER WHERE WE'RE MOVING THAT, WHAT EACH DEPARTMENT IS WORKING ON.
SO FOR EXAMPLE, ONE THAT REALLY BLEW MY MIND WAS THE STREETS 92 STREETS, UM, 20 STREETS OVER 92 BLOCKS.
THERE'S THERE, THERE'S A LIST OF THE STREETS AND HOW MANY BLOCKS OR OR CREWS WERE ABLE TO ACCOMPLISH.
AND THAT'S, THAT'S A LOT COMPARED TO OTHER YEARS.
UM, SO SOME OF THE ONES THAT, UH, WERE ABLE TO SUBMIT THEIR ACHIEVE GOALS FROM LAST TIME IT WAS PRESENTED AT CAPITAL IMPROVEMENT TO THIS TIME.
IT, IT'S ADDED RIGHT THERE, RIGHT TO YOUR RIGHT CORNER ON, ON EACH SLIDE.
I'M SO GLAD YOU MENTIONED THAT, STEPHANIE.
'CAUSE I JUST WANNA BEAT A DRUM THAT I'VE BEEN BEATEN FOR A WHILE AND POOR FRED HAS TO LISTEN TO ME PUT UP WITH THIS, SAY THIS.
BUT I'M ALWAYS INTERESTED IN KEY PERFORMANCE INDICATORS, KPIS AND, AND WHAT YOU'RE REFERRING TO WOULD BE NOT NECESSARILY A KEY PERFORMANCE INDICATOR, BUT STILL A GOOD STATISTIC FOR US TO HAVE, UM, THINGS.
AND, AND WE CAN RUN THROUGH LISTS OF DIFFERENT DEPARTMENT KPIS, EVERYTHING FROM POLICE RESPONSE TIMES TO HUMAN RESOURCES AND THE TURNOVER RATES AND, AND THOSE KINDS OF THINGS.
AND I THINK THOSE ARE ALL BECOME REALLY CRITICAL.
UH, AT LEAST FOR ME TO, TO SIT UP HERE AND HAVE TO REPORT TO PEOPLE ABOUT WHAT WE'RE DOING AS A COMMUNITY BECOMES EXTREMELY CRITICAL.
AND, AND, AND, AND I JUST WANT TO CONTINUE TO BEAT THAT DRUM AND SEE IF WE CAN INCORPORATE THAT SOMEWHERE IN REALLY GET IT WORKING THIS NEXT YEAR IN TERMS OF HOW WE CAN THEN CONTINUE TO MEASURE OUR PERFORMANCE.
AND, AND MR. SONOVA HAS BROUGHT IT UP TO, TO MY ATTENTION, THE APPROACH WE WANT TO TAKE WITH THOSE.
AND YOU, YOU'LL SEE IT, YOU'LL SEE IT SOON.
WE'RE THINKING MORE OF A, LIKE A QUARTERLY REPORT FOR KPIS TYPE OF THING OTHER THAN MONTHLY.
'CAUSE I WOULD, WE DISCUSS THAT I WILL BE KIND OF LIKE HARD TO PUT TOGETHER AND THEN SOMETIMES DO TAKE MORE THAN A MONTH TO ACCOMPLISH.
SO A QUARTERLY REPORT ON THAT, THAT COULD PROBABLY, THAT COULD PROBABLY BE OUR BEST BET.
AND UM, AND I KNOW FOR A FACT THAT YOU HAD READ OR AUDIT, I REMEMBER THAT LAST TIME.
AND SOME OF OUR KPIS ARE, ARE INCLUDED IN THE AUDIT.
UH, BUT WE'LL IF, IF NOT POSSIBLE FOR THIS BUDGET, WE'LL START THE, THE, THE QUARTERLY REPORTS.
UM, I HOPE WE CAN, WE'RE ABLE TO INCLUDE IT BY, BY SEPTEMBER, TALK TO OTHER DEPARTMENT HEADS AND SEE WHAT WE CAN PUT TOGETHER.
SO MOVING FORWARD, WE HAVE A KPI PLAN AND WHAT IS IT THAT THEY NEED TO ACCOMPLISH EVERY, EVERY QUARTER.
FROM THERE, I FEEL LIKE LOOKING AT THIS AND HEARING YOU SAY THAT, I FEEL LIKE THAT WHAT WE'RE STARTING TO REALLY BUILD IS A VERY GOOD FIRM FOUNDATION FOR US TO, TO MOVE FORWARD.
OKAY, COMMISSIONER, ANYTHING ELSE? UM, I WAS TALKING TO THE CITY MANAGER.
UM, DO Y'ALL WANT ANOTHER GO THROUGH THE BUDGET AGAIN OR THAT'S IT.
UM, WHEN WE ADOPT THIS, I THINK MAYOR, UM, SPEAKING FOR MYSELF, I WOULD LIKE TO GO THROUGH THE WHOLE THING MYSELF, LOOK AT AND DO AT LEAST ONE MORE I GUESS.
AND THEN, UM, WELL CAN, CAN EVERYBODY JUST GO THROUGH THE WHOLE BOOK AND THEN DURING THE CITY MEETING THAT WE HAVE, WE CAN ADOPT IT THERE.
IF, IF I CAN ADD, SO NORMALLY AT ADOPTION TIME I DO GO OVER EACH DEPARTMENT, UM, AND I TELL THE TOTALS.
SO IF AT THAT, AT THAT TIME YOU HAVE QUESTIONS, YOU CAN ALWAYS BRING THEM UP.
BUT BE AWARE THAT WE'LL BE AT ADOPTION TIME AND SEPTEMBER 5TH, THAT'LL BE OUR NEXT, I KNOW WE NORMALLY DO TO BUDGET WORKSHOP, BUT IT'S, IT'S UP TO UP TO COMMISSION DUE TO AUGUST.
I WOULD LIKE TO JUST ME PERSONALLY THAT JUST, I WOULD LIKE TO GET THIS, UH, BUDGET, YOU KNOW, UH, AT LEAST APPROVED BY AUGUST.
OR NEXT, OR POTENTIAL DATE TO BE APPROVED BECAUSE WE NEED TO POST IT IN THE NEWSPAPER FIRST PUBLIC HEARING, CORRECT.
THE SOONER WE CAN DO THAT, IT'S IN SEPTEMBER 5TH BASED ON THE PUBLICATIONS WE NEED TO PUT.
UM, SO SEPTEMBER 5TH IS THE, IT'S THE GOAL AND IT'S WAY SOONER THAN THE, WE NORMALLY DO IT, WE ALWAYS WAIT TILL THE LAST WEEK OF SEPTEMBER.
SO THIS IS ON THE 5TH OF SEPTEMBER.
SO YOU GOT THE TWO MEETINGS RIGHT NOW, RIGHT? MM-HMM,
[01:45:01]
AS LONG AS WE CAN INCLUDE IN OUR FUTURE AGENDA, POTENTIAL BUDGET ITEM CHANGES IN THE NEXT TWO AGENDAS FOR NEXT MONTH.CERTAINLY, IN FACT, WHAT I WAS GONNA SUGGEST, I MEAN, HAVE, IT'S A LOT TO TAKE IN UNLESS YOU'RE MAYOR PROTE, WHICH SHE'S ALREADY FINISHED.
BUT FOR THE REST OF US THAT, YOU KNOW, UH, Y'ALL WOULD LIKE TO JUST TAKE A LOOK AT IT, DIGEST IT A LITTLE BIT, IF YOU HAVE ANY QUESTIONS.
I MEAN, WE CAN HAVE ANOTHER WORKSHOP WITHIN 72 HOURS AND HAVE ANOTHER LOOK AT IT AND BE READY TO, TO MAKE ANY CHANGES OR ADDITIONS OR DELETIONS, UM, AS Y'ALL SEE FIT, IT'S YOUR BUDGET.
I GUESS MY QUESTION IS, IS AT OUR REGULAR MEETINGS CAN WE INCLUDE AGENDA ITEM THAT SAYS, OPEN FOR COMMISSIONERS TO COMMENT ON ANY CHANGES, PROPOSED CHANGES? ABSOLUTELY.
AND THAT WAY ELIMINATING ANOTHER NEED FOR WORKSHOP, EXCUSE ME, I'M SORRY.
THAT, THAT WOULD WORK OUT PERFECTLY.
WE CAN, WE CAN INCLUDE THAT LANGUAGE IN THE, IN THE, IN THE, UH, REGULAR AGENDAS.
IT'S A GREAT SUGGESTION ACTUALLY.
SO WE GOT THE RUTH, WE HAVE AUGUST THE SEVENTH, OUR NEXT MEETING SIXTH, AUGUST 6TH, OKAY.
AND THE OTHER ONE AUGUST THE 20TH.
AUGUST 6TH AND AUGUST THE 20TH.
THAT WOULD BE FINAL APPROVAL WILL BE SEPTEMBER 5TH THEN, IS THAT RIGHT? CORRECT.
WELL WE NEED TO BY THE 20TH, SO BE THE LAST MEETING IN AUGUST TO BE READY TO POST FOR, TO ALL THE SIZED BY SEPTEMBER 5TH.
SO THE 20TH WOULD BE THE LAST FINAL, RIGHT? YEAH.
THE, THE LAST APPROVAL DECISION MAKING THAT Y ALL CAN MAKE OR IF YOU WANNA MAKE ANY CHANGES, THAT'LL GIVE ME FROM AUGUST 20TH TO SEPTEMBER 5TH TO MAKE THE, IF ANY CHANGES TO MAKE THEM.
AND THEN AT THE TIME OF ADOPTION, I'LL STILL GO THROUGH IT, UH, PER DEPARTMENT.
HOW MUCH IT IS JUST, IT'S THE NORMAL I HAVE TO DO LIKE A PUBLIC HEARING, THE ADOPTION AND SECOND AND LAST PUBLIC HEARING OF IT.
SO I'LL GO OVER IT AGAIN JUST TO REITERATE THAT THOSE CHANGES DID HAPPEN.
ANY OTHER QUESTIONS, COMMISSIONER? NONE, NOTHING ELSE.
UH, JUST ONE OTHER THING TO ADD TO MENTION, MAYOR, JUST REAL QUICK, I'M SORRY, I FORGOT TO MENTION IT EARLIER.
UM, THIS BUDGET DOES NOT INCLUDE ANY GRANTS.
SO ALL OF THOSE ARE IN PLAY AS WE SPEAK.
WE'VE GOT A COUPLE MORE THAT WE'RE WORKING ON.
UH, JAN AND I ARE WORKING WITH, UH, WITH A GROUP FOR, UH, SOME FUNDING OPPORTUNITIES AND LOOKING AT THE NAD BANK AND THE BECK FOR A WATER AND WASTEWATER GRANT AS WELL.
BOTH OF THOSE ARE A COUPLE HUNDRED THOUSAND A PIECE THAT SEEMS TO BE THE MAGIC NUMBER AROUND HERE.
SO, UH, THAT'S ANOTHER HALF A MILLION THAT WE'RE LOOKING AT HERE.
UH, THAT IS NOT GONNA BE REFLECTED IN THIS BUDGET.
AND AGAIN, THOSE ARE ALL THE THINGS THAT STAFF AND I ARE GONNA BE DOING TO BUY DOWN THIS, THIS BUDGET AND PUT US IN A BETTER POSITION FINANCIALLY.
AND AGAIN, THAT'S OUR PLEDGE TO YOU ALL AND I APPRECIATE ALL Y'ALL, APPRECIATE YOUR TIME AND YOUR INDULGENCE AND ANYTHING, ANY QUESTIONS, PLEASE FEEL FREE TO CALL ME AND I WILL GET THOSE ANSWERS TO YOU.
ANY, ANYTHING THAT NEEDS TO BE CLARIFIED, UH, IT'S A LOT TO TAKE IN AND I DO APPRECIATE Y'ALL.
THANK YOU AGAIN, UM, FOR ALL THE HARD WORK THAT, UH, YOU GUYS HAVE BEEN GOING OUT THERE DOING.
UM, UH, LET'S DO MORE FOR THE PEOPLE.
OKAY? SO, UM, WE'RE GONNA HOLD YOU ACCOUNTABLE PLEASE,
NOT FOR THE WRONG REASONS, BUT FOR THE RIGHT REASONS.
OKAY? SO COMMISSIONERS, ANY OTHER QUESTIONS? MAYOR, CAN WE HAVE ALL THE ONES HERE? THE DIRECTORS STAND UP PLEASE, BECAUSE I'D JUST LIKE TO APPLAUD ALL OF Y'ALL.
THANK YOU FOR MOVING SOMEBODY FORWARD.