Jul 24, 2023 Special City Council Budget Workshop

[CALL TO ORDER]

[00:00:13]

MOMENTARILY. >> GOOD MORNING, IT IS 9 A.M.

AND SPECIAL MEETING OF THE ABILENE CITY COUNCIL IS CALLED TO ORDER. I WILL ASK COUNCILMAN KYLE MCALISTER TO LEAD US IN OUR PRAYER AND PLEDGES, PLEASE.

>>KYLE MCALISTER: LET US PRAY. HEAVENLY FATHER, WE THANK YOU FOR BEING HERE TODAY AND THANK YOU FOR THIS INCREDIBLE CITY WE ARE A PART OF. AND WE THANK YOU FOR ALL OF THOSE WHO WORK EVERY DAY IN FRONT OF THE SCENE.

AND ALSO BEHIND THE SCENES TO KEEP THIS CITY GOING.

WE PRAY FOR THEIR SAFETY TODAY AS -- AS IT IS GOING TO BE ANOTHER HOT DAY AS THEY ARE OUT AND ABOUT.

OUR FIRST RESPONDERS, OUR CREWS THAT KEEP THE WATER FLOWING AND OUR STREETS REPAIRED. WE JUST PRAY SAFETY FOR THEM.

GOD, WE PRAY FOR US TODAY AS WE BEGIN THE PROCESS OF BUDGETING FOR THIS CITY ONCE AGAIN. I PRAY THAT YOU GIVE US WISDOM AND GUIDANCE TO MAKE THE RIGHT DECISIONS.

GOD, WE WANT TO PRAY FOR THE CHRISTIANSON FAMILY AS MOST -- MOST OF US KNOW KAYLA AND CONTINUE TO BLESS THAT FAMILY.

HELP US MAKE GOOD DECISIONS AND AS ALWAYS, GOD, WE PRAY FOR RAIN. IN CHRIST'S NAME WE PRAY, AMEN.

>>MAYOR HURT: WE WILL DO THE UNITED STATES PLEDGE.

>> I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA. AND TO THE REPUBLIC FOR WHICH IT STANDS. ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

>>MAYOR HURT: HONOR THE TEXAS FLAG, PLEDGE.

>> I HONOR THE TEXAS FLAG, I PLEDGE ALLEGIANCE TO TEXAS, ONE STATE UNDER GOD. ONE AND INDIVISIBLE.

>>MAYOR HURT: KYLE. THANK YOU.

>>MAYOR HURT: COUNCILMAN CRAVER SHOULD BE JOINING US LATER.

BEFORE WE BEGIN OUR BUDGET SESSION, I WOULD LIKE TO REVIEW FOR THOSE IN ATTENDANCE WHO FOR OUR EXPECTED SCHEDULE EURAL THIS WEEK. WE ARE SCHEDULED TODAY FROM 9 TO POSSIBLY 4:00 AND FOLLOWED BY TUESDAY AND WEDNESDAY, IF NECESSARY. TO GO OVER THESE BUDGET ITEMS. IF WE DO NOT GET THOSE DONE, WE WILL EXTEND THAT INTO THURSDAY

[PUBLIC COMMENTS]

THE PUBLIC COMMENT PERIOD WILL ONLY ALLOW IDEAS AND INFORMATION TO CITY OFFICIALS AND STAFF. AND DO WE HAVE ANY CARDS,

COUNCILMAN BEARD. >>LYNN BEARD: BRIAN NELSON.

>> GOOD MORNING, MY NAME IS BRIAN NELSON AND I'M HERE TODAY TO SHOW A PASSION I HAD ABOUT SOFT BALL, YOUTH SOFT BALL AND A PASSION WITH OVER 1800 LEAGUE PLAYERS WHO PLAY LEAGUE BALL IN THE CITY OF ABILENE AND MORE IMPORTANTLY 4,000 PLAYERS THAT COME FROM ABILENE FROM THE BIG COUNTRY TO EXPERIENCE YOUTH SOFT BALL. THE NUMBERS HAVE GROWN SO MUCH OVER THE PAST TEN YEARS. IT IS AMAZING.

THEY ABSOLUTELY EXPLODED WHAT WE REALLY IS MORE FIELDS, RIGHT.

I WOULD LOVE TO PITCH THAT TO YOU.

AND THERE IS A MASTER PLAN FOR THAT.

HOWEVER THAT IS A $15 MILLION PROJECT AND I DON'T THINK I CAN GET THAT MUCH TODAY. WHAT CAN WE DO TODAY TO LEAD TOWARD THAT $15 MILLION PROJECT? IF YOU EVER PARKED IN OUR NORTH PARKING LOT AND CAME THROUGH THE GATE, IT IS BASICALLY "GLADIATOR." YELLOW BALLS BACK AND FORTH AND FANS IN THE WARM-UP AREA IN THE EXACT SAME AREA.

A SAFETY CONCERN. WHAT CAN WE DO? I PROPOSE WE BUILD BATTING PAGES THAT WILL DOUBLE AS BULL PENS.

EIGHTING CAGES FOR PITCHERS, CATCHERS AND BATTERS TO WARM UP WITHOUT INTERFERE WITH THE FANS. ADDITIONALLY, I WOULD LIKE TO BUILD NEW DUGOUTS. THESE DUGOUTS ARE FOUR FEET LONGER AND TWO FEET DEEPER TO MAKE ROOM FOR ALL THE NEW EQUIPMENT THAT THESE GIRLS ARE BRINGING IN.

THESE TWO IMPROVEMENTS WILL BRING OUR FACILITY TO NEXT LEVEL AND IT WILL LEAD TOWARD THAT $15 MILLION GOAL THAT WE ALL HAVE.

I WOULD LIKE TO THANK YOU FOR THE TIME.

AND PLEASE LET ME KNOW IF YOU HAVE ANY QUESTIONS.

>>MAYOR HURT: THANK YOU. WE ARE STILL IN THE PUBLIC COMMENT PERIOD, WOULD ANYONE LIKE TO TAKE ADVANTAGE OF THAT

[2. Presentation: Revised FY 2023 and Proposed FY 2024 Budgets and Complete Budget Review]

[00:05:02]

BUT JUST KNOW IN THE ENDS WHEN WE FINALIZE THIS, THIS IS OUR BUDGET. THIS IS OUR COUNCIL BUDGET THAT WE ARE GOING TO APPROVE OUR NAMES ON IT LOOKING FORWARD TO THE GOOD DISCUSSIONS. ROBERT HANNA.

>>ROBERT HANNA: THANK YOU, MAYOR.

I AM GOING TO -- THIS IS -- I THINK -- THIS IS THE FIRST TIME WE HAVE DONE THIS SINCE WE HAVE THE NEW COUNCIL CHAMBERS.

YES? NORMALLY A SIT DOWN AND MIKE AND I GO THROUGH THIS TOGETHER. AND IF WE HAVE TO ADJUST, WE WOULD FOR THE FUTURE. OUR CALENDAR GOING FORWARD AS YOU MENTIONED, THE FIRST SEVERAL DAYS, MONDAY, TUESDAY, AND WEDNESDAY AN OPPORTUNITY TO THERE ARE COUNCIL TO MAKE THIS BUDGET, WHICH IS MY RECOMMENDED BUDGET YOUR OWN.

SOMETIMES THAT CAN TAKE A SHORT TIME.

SOMETIMES THAT CAN TAKE A VERY LONG TIME.

BUT WE HAVE THE SPACE FOR THAT, IF NECESSARY.

BUT OUR OBJECTIVES, EITHER TODAY, TOMORROW OR WEDNESDAY IS TO HAVE A FIRST READING FOR THE REVISED BUDGET FOR THE '24 BUDGET, FOR THE TAX RATE AND THE FEE SCHEDULE ASSOCIATED WITH THE BUDGET. COME AUGUST 10, WE WILL HAVE PUBLIC HEARINGS IN THE ADOPTION OF THE REVISED BUDGET, THE TAX RATE, THE '24 BUDGET AND THE FEE SCHEDULED THAT WILL BE DONE AT A REGULAR COUNCIL MEETING. SO GOING INTO THINGS, I WANTED TO JUST KIND -- WE LIKE TO DO THIS BECAUSE IT REALLY DOES KINDS OF SHOW WHERE OUR DOLLAR -- WHERE OUR PUBLIC DOLLAR GOES.

YOU WILL SEE 39% OF THAT DOLLAR FOR ALL FUNDS IS GENERAL FUND RELATED. 4% IS DEBT SERVICE.

ONE OF THE THINGS THAT I THINK IS IMPORTANT TO REALIZE THAT THAT NUMBER IS LOW FOR A COMMUNITY OF OUR SIZE.

NOT SUGGESTING THAT WE NEED AN ISSUE -- GOING TO ISSUE A LOT OF DEBT, BUT A LOW NUMBER IN COMPARISON WITH OTHER

COMMUNITIES. >> ROBERTS?

>>ROB HANNA: YES, SIR. >> THIS ISN'T REVENUE?

>>ROB HANNA: SORRY, THAT IS REVENUE.

YES. 4% OF IT -- AMAZING HOW THE NUMBERS LOOK THE SAME AS YOU FLIP THE SIDE.

4% OF OUR REVENUE GOES FOR DEBT SERVICE AND 5% OF REVENUE TO STREET MAINTENANCE. THERE ARE EXPENDITURES.

LOOKS REMARKABLY THE SAME. 4% IS DEBT SERVICE.

5% STREET AND MAINTENANCE, 30% -- ALMOST 30% IS WATER AND SEWER. THE AIRPORT, WHICH IS ITS OWN STAND ALONE FUND IS 1%. AND THAT IS NEW AS OF LAST YEAR, I BELIEVE. LOOKING AT THE GENERAL FUND BUDGET SUMMARY, YOU WILL SEE THAT WE HAVE REVENUES OVER AND UNDER EXPENDITURES OF 4.567 MILLION BECAUSE OF THE TRANSFER OF END-OF-YEAR FUNDS. NOT BECAUSE WE OVERSPENT THE BUDGET, MONEY WE HAD IN EXCESS AT THE ENDS OF THE FISCAL YEAR AND TRANSFER AND HOW WE ACCOUNT AND THE PROCESS.

THE PROPOSED BUDGET FOR NEXT YEAR, WE ARE SEEING A REVENUES AND OVER EXPENDITURES OF $140,000.

$140,000 THAT COUNCIL COULD APPROPRIATELY ALLOCATE FOR OTHER FUNCTION IT IS YOU WANT TO. FOR THE STANDPOINT OF WHAT HAS CHANGED BETWEEN THIS YEAR AND THE YEAR APPROVED IN THE REVISED. SALES TAX UP CONSIDERABLY 2.5 MIL MILLION.

FRANCHISE GUYS ARE UP. THE LANCIUM PAYMENT.

THEY ARE REQUIRED TO MAKE A PILOT AND PAYMENT IN LIEU OF TAX ONCE THEY HAVE APPRAISED VALUE ON THE GROUND.

THEY JUST HAD THEIR PLAT APPROVED MAYBE LAST MONTH AND THEY ARE IN THE PROCESS OF FINALIZING UTILITY IMPROVEMENTS AND ACTUALLY CONSTRUCTING FACILITIES.

THEY ARE JUST NOW STARTING THAT PROCESS.

SO I WOULD EXPECT THAT PAYMENT TO SHOW UP IN FY '24 OR '25.

A SLOWER START AND THEY MOVED DILIGENT THREE THROUGH THE PROCESS. THEY JUST -- THEY RETOOLED AND REIMAGINED SOME THINGS. ANIMAL SERVICES CHARGES.

WHEN WE -- WHEN WE OUTSOURCED ANIMAL SERVICES TO ALL KINDS, THOSE REVENUES ARE NO LONGER SHOWING UM ON OUR BOOKS.

THE SAME THING FOR ADVENTURE COVE.

WE HAD AN INCREASE IN CITATIONS AND COLLECTIONS OF CITATIONS.

AS EVERYBODY KNOWS, INTEREST RATES HAVE GONE UP.

AND SO WE HAVE SEEN ABOUT $2 MILLION IN UNBUDGETED INTEREST REVENUES. AND DISPATCH FEE.

WE ENTERED INTO AN AGREEMENT WITH METRO CARE TO DISPATCH THEIR CALLS AND MAY BE US FOR THE PURCHASE, A $750,000 REVENUE

[00:10:02]

THE EXPO CENTER HOW WE MANAGE THE HOT FUNDS.

AND MOVING THE REVENUES. SO IN TOTAL, INCREASE OF REVENUES OF 4.1 MILLION. FROM A EXPENDITURE STANDPOINT, WE HAVE POSITIONS THAT WE WEREN'T ABLE TO FILL.

WE HAD INCREASE OVER TIME. MANAGE SERVICE TRANSITIONS AGAIN FOR ANIMAL SERVICES OF ALL KINDS AND THE AKWAUTDIC CENTER, VNTURE COVE. THERE IS A COST TO THAT.

AND THEN WHEN WE LOOK AT THE EXTRA YEAR-END FUNDS, REVENUE INCREASES AND SAVINGS, WE TRANSFER THAT AS PART OF THE BUDGET PROCESS WE ARE IN RIGHT NOW.

A TOTAL OF $8.8 MILLION. AND OTHER CHANGES -- OTHER CHANGES THROUGHOUT THE ENTIRE ORGANIZATION NETTED ABOUT $859,000. SO A TOTAL INCREASE IN EXPENSE AT 8.8. YOU CAN SEE THE VAST MAJORITY OF THAT IS UNSPENT DOLLARS AND ADDITIONAL REVENUE.

GENERAL FUND EXPENDITURES BY CATEGORY, 70% OF WHAT WE DO IS PERSONNEL. YOU KNOW HISTORICALLY, SOME PEOPLE HAVE SAID THAT IS TOO HIGH.

WE ARE A SERVICE-BASED ENTITY. IT IS WHAT WE DO.

WE NEED PEOPLE TO DO WHAT WE DO. NOT SURPRISING THAT A LARGE PART OF OUR COST IS WRAPPED UP IN THE PEOPLE THAT PERFORM THE SERVICES FOR THE PUBLIC. EXPENDITURES BY PROGRAM, 50% OF WHAT WE SPEND OUR MONEY ON IS PUBLIC HEALTH.

ONE OF THE KEYS I DO WANT TO POINT OUT IS INFRASTRUCTURE AND DEVELOPMENT. THAT NUMBER WHEN I FIRST GOT HERE WAS A LOT LOWER AND INCREASED OVER TIME IN LARGE PART BECAUSE OF THE STREET MAINTENANCE FEE AND IMPROVING OUR STREETS. SO KEY REVENUE CHANGES BETWEEN FISCAL YEAR '24, WHAT IS PROPOSED IN THE BUDGET AND REVISED FY 2023. APPRAISAL DISTRICT INCREASED TAXABLE VALUE BY 15% WHICH DOES LOWER OUR TAX RATE, BUT WE ALSO RECOGNIZE INCREASED REVENUE GAINS.

$4.9 MILLION. WE ARE PROGRAMMING A 2% INCREASE IN SALES TAX REVENUE. IT DOESN'T MEAN THE RATE IS GOING UP, IT JUST MEANS WE EXPECT THIS, AND YOU CONTINUE TO SEE INCREASED SALES. INCREASE IN UTILITY REVENUES, INDIRECT COST RECOVERIES, THESE THESE ARE THINGS THAT -- WE HAVE TO CHARGE OURSELVES FOR ADMINISTRATION, FOR -- FOR THE WORK WE PROVIDE OF OTHER FUNDS AND IN THE BUDGET.

AND THEN MISCELLANEOUS RECOVERIES FOR METRO CARE IS A DEDUCT FROM WHAT WE SAW LAST YEAR.

TOTAL INCREASE OF REVENUE ABOUT 6.3 MILLION.

ON THE EXPENDITURE SIDE, WHAT WE HAVE PROGRAMMED FOR PERSONNEL SERVICES IS AN ADOPTION OF THE COMP AND CLASSIFICATION PLAN.

COUNCIL SET A TARGET OF 94% OF MARKET.

SO THAT IS THAT'S WHAT WE HAVE PROGRAMMED IN THE BUDGET OR 3%.

IF YOU ARE ALREADY AT 94% OF MARKETS, THERE IS A 3% ADJUSTMENT TO -- TO PAY. SO EVERY GENERAL FUND EMPLOYEE WILL BE RECEIVING AT LEAST THAT 3%.

$2.5 MILLION INCREASE TO THE GENERAL FUND.

MAIN PAYROLL POLICE AND FIRE. $2.6 MILLION.

THE SINGLE-FAMILY INFILL PROGRAM WILL HAVE A WHOLE BUNCH OF SLIDES ON THAT IN JUST A SECOND. EARMARKING $1 MILLION FOR THAT PRO PROGRAM.

FLEET FUND CHARGES ARE INCREASING.

THAT IS BECAUSE OF MAINTENANCE ON THE FLEET.

PURCHASES. A FORMULA THAT GOES IN TO DETERMINE HOW MUCH FOR THE FUND AND AN INCREASE ASSOCIATED WITH THAT. INCREASE IN TECHNOLOGY CHARGES DEPENDING ON WHAT COUNCIL DOES WITH BE A ITEM THIS THURSDAY IN THE REGULAR AGENDA. THAT -- THAT NUMBER, THAT INCREASED FUNDING REQUIREMENT IN THE TECH FUND BUDGET OF FY '24.

THAT IS A PART OF IT. ALSO MAKING SURE THAT WE ADEQUATELY FUND OUR SOFTWARE. YOU HAVE MUSHGZUNIS, THE LICENSING GUYS ARE ALSO INCLUDED IN THAT.

THERE IS $6.4 MILLION IN MINOR IMPROVEMENT FUND EXPENDITURES.

WE ARE DECREASING THE FUND 1 MILLION FROM THE GENERAL FUND -- EXCUSE ME FROM THE GENERAL FUND. THE GENERAL FUND 1.02 MILLION

[00:15:05]

AND THEN WE ARE DECREASING THE SELF-INSURANCE FUND, GENERAL FUND TRANSFER. THIS IS THAT ONE PENNY ON THE TAX RATE. WE TALKED ABOUT THIS LAST YEAR THAT WE ARE AT A POINT WITH OUR SELF-INSURANCE FUND THAT WE ARE GOOD. AND YOU WILL SEE WE ACTUALLY HAVE A PLANNED -- A PLANNED DECREASE IN FUND BALANCE.

IT IS MINOR AND WE WILL GET INTO THE REASONS WHY IN JUST A SECOND. SO TOTAL -- NET TOTAL INCREASE IN EXPENDITURES IS $1.4 MILLION. HISTORICALLY WHAT OUR TAX RATES BETWEEN FY '14 AND FY '24. TAX RATE PEAKED AND PROPOSING 7.2 CENTS NEXT YEAR WHICH IS A LITTLE OVER $.04 REDUCTION IN THE TAX RATE. YOU WILL NOTICE ALSO THAT THE GENERAL OPERATING OR THE M &O OPERATION PEAKED AT.069.

HAND THIS ALSO HAS BEEN COMING DOWN.

DEBT SERVICE RATE. THE DEBT SERVICE RATE PEAKED AT 2103 AND NOW .214. A PORTION OF THAT TAX RATE COMES DOWN. HERE IS A GRAPHICING THAT KIND OF SHOWS THAT DURING THE SAME REVIEW PERIOD.

AND THERE ARE MAINTENANCE AND OPERATION TAX RATE IS PERCENTAGE OF THE TOTAL RATE. THAT NUMBER WILL CONTINUE TO GO UP AS THE INTEREST IN SINKING FUND RATE CONTINUES TO GO DOWN.

THE M&OS BECOME A LARGER PERCENTAGE OF THE TAX RATE.

I AM GOING TO SWITCH TO THE WATER AND SEWER OPERATING FUND, BUT IF YOU HAVE ANY QUESTIONS ON THE GENERAL FUND THAT PERTAIN TO JUST AN OVERVIEW OF THINGS, I AM HAPPY TO PAUSE AND ANSWER THOSE.

IF NOT, WE WILL MOVE INTO WATER AND SEWER AND GET MORE DETAILED QUESTIONS LATER. YES, SIR?

>> I HAVE ONE QUESTION. ON THE -- ON THE 2% SALES TAX INCREASE. I DON'T EVEN KNOW WHAT SLIDE IT WAS ON. YEAH, THERE IT IS.

I WAS JUST LOOKING. AS OF RIGHT NOW, AS OF JULY, THE SALES -- IF I AM READING IT CORRECTLY, THE SALES TAX

REVENUES UP 8.47%. >> CORRECT.

>> A 2% IS PRETTY CONSERVATIVE. IF THOSE DOLLARS CONTINUE TO COME IN. IS THAT HOW THEY MOVE THEIR

MONEY TO THE FUND. >>ROB HANNA: THAT IS RIGHT.

IT IS EXTREMELY ELASTIC. GOES UP REAL FAST AND COMES DOWN REAL FAST. 2% INCREASE ON TOP OF THAT %.

IT IS CONSERVATIVE, BUT IT IS ALSO, I THINK, REALISTIC.

THERE ARE MANY ANALYSTS THAT SAY WE ARE HEADED TOWARD A RECESSION. THERE ARE MANY ANALYSTS THAT SAY WE ARE GOING TO HAVE A SOFT LANDING OF WHAT THE FEDS ARE TRYING TO DO. WHICH BASICALLY MEANS NO ONE'S CRYSTAL BALL IS ACCURATE. WE THINK THAT 2% IS DOABLE AND ACHIEVABLE WITH THE ABILENE ECONOMY WHICH IS WHY WE BUDGETED

THAT AMOUNT. >> I WAS GOING TO COMMENT ON THE SLIDE WITH THE PERCENT OF M&O. NEXT ONE.

YEAH. THIS REFLECTS ACTION AND DIRECTION THAT WE HAD GIVEN YEARS AGO THAT WE WANTED TO FUND THINGS AS WE GO OPPOSED TO BORROWING MONEY.

BECAUSE WHEN YOU BORROW MONEY, YOU HAVE TO PAY THE INTEREST ON TOP OF WHAT YOU ACTUALLY BENEFIT FROM.

SO I AM GLAD -- I AM GLAD YOU INCLUDED THAT SLIDE.

AND IT IS GOOD TO SEE THAT WE ARE MOVING IN THAT DIRECTION WHERE WE ARE PAY AS YOU GO MORE SO THAN BORROWING AND PAYING

INTEREST. >>ROB HANNA: TO ADD A LITTLE MORE TO THAT, WE HAD A CUSTOMARY PURPOSE.

WE -- WE HAD A HISTORICAL PRACTICE OF ISSUING CERTIFICATES OF OBLIGATION FOR THINGS THAT REALLY SHOULD HAVE CASH PURCHASED. MINOR IMPROVEMENTS WHICH WAS THE GENESIS FOR THE MINOR IMPROVEMENT FUND BECAUSE OF OF WHAT THE COUNCIL'S POLICY WAS ON THIS AND GOOD FINANCIAL MANAGEMENT, WE HAVE BEEN ABLE TO SPEND SO MORE OF MINOR IMPROVEMENTS. COUNCIL POLICIES ARE EFFECTIVE AND WORKING TO THAT END. THANK YOU, SHANE.

ANYONE ELSE? ON THE WATER AND SEWER FUND.

A GENERAL OVERVIEW. TOTAL REVENUES OF $74 MILLION AND TOTAL EXPENDITURES OF $80 MILLION.

WE ARE SPENDING MORE THAN WE BEGIN.

THIS IS INTENDED. A SPENDS DOWN OF THE MONEY.

WE INTENTIONALLY COLLECTED -- MAKE SURE -- INTENTIONALLY COLLECTED FOR CAPITAL PROJECTS. YOU RECALL THAT PART OF OUR CIP

[00:20:03]

CIP EXPOSURE WHERE WE RECOMMEND THE ISSUANCE OF DEBT WHICH IS PLANNED AT PART OF THE CIP PROGRAM.

THOSE SLIDES ARE COMING UP. SO WHEN IT COMES TOMORROW WHERE WE SPEND OUR MONEY FOR THE -- FOR THE WATER AND SEWER FUND, PERSONNEL IS 16%. SERVICES AND CHARGES IS 31%.

YOU WILL SEE THAT THE MOST DEBT THE CITY HAS IS REALLY IN WATER AND SEWER. THE DEBT THAT WAS ACCUMULATED AS PART OF THE 20 -- YOU KNOW, '134, '14, AND '15 DROUGHT RESPONSE VAST MAJORITY OF WATER AND SEWER DEBT THAT WE HAVE ON THE BOOKS TODAY. CAPITAL PROJECT EX- EXPENDITURES ARE COST FUNDED AND 15%. REVISED '23 REVENUE IN THE BUDGET. INCREASE OF USAGE OF WATER.

INCREASE OF INVESTMENTS. THAT IS JUST -- WE DON'T GET TO PLAY THE STOCK MARKET. WE HAVE -- WE ARE FORCE TO HAVE EXCEPTIONAL LEGAL CONSERVATIVE, ZERO-RISK INVESTMENTS.

BUT THEY ARE PAYING MORE THAN THEY WERE PAYING BEFORE.

THEY ARE PAYING, LIKE, 25 BASIS POINTS BEFORE.

SO ANYTHING IS -- EVERYTHING IS AN IMPROVEMENT FROM THAT.

TOTAL REVENUES IS .8 MILLION. AND THEN CHANGES IN REVISED FROM THE ORIGINAL AND EXPENDITURE STANDPOINT.

CHEMICAL COST INCREASE MAKES SENSE IF SPENDING OR MAKING MORE MONEY ON WATER PRODUCTION. INCREASE IN CHEMICAL COSTS.

CHEMICALS HAVE INCREASED FROM THE SUPPLY CHAIN STANDPOINT.

ELECTRICITY IS STILL UP WITH MISCELLANEOUS.

$3.1 MILLION TOTAL INCREASE FROM WHAT WAS ADOPTED IN THE BUDGET.

SO CHANGES FROM FY '24 TO FY '23, INCREASED RATES IN CONJUNCTION WITH WATER RATE STUDY ESTIMATED BY LOWER ESTIMATED USAGE. WE ARE EXPECTING TO SPEND NOT QUITE AS MUCH BUT ALSO A PLANNED RATE INCREASE FOR WATER AND SEWER RATES. COUNCIL HAS ALREADY PREVIOUSLY ADOPTED AND PART OF OUR CRP MASTER PLAN TO CASH FUND THOSE IMPROVEMENTS THAT WE CAN. SO A MILLION DOLLARS IN DECREASED REVENUE TOTAL. CHANGES BETWEEN '24 AND FC '23 ADVISED. AGAIN, '94 MARKET.

$820,000. CHEMICAL SUPPLY DECREASES.

WE HOPE THAT THE MARKET STABILIZES.

FRANCHISE TAX PAYMENT WILL GO UP.

TECHNOLOGY FUND CHARGES FOR THE UTILITY SYSTEM WILL GO TO THE TECH FUND. CAPITAL DEVELOPMENT FUND.

TRANSFER OUT. ADDITIONAL EXCESS REVENUE.

THAT IS PART OF OUR -- AND INCREASED TO PROPERTY CAPITAL FUND. THAT IS PART OF OUR 5% MONEY WE PUT AWAY ANNUALLY TO THE UTILITY FUND FOR CASH FINANCING PROJECTS. SO $4.

5 MILLION. THIS IS CIP PROGRAM.

FY '23 IS IN THE PROCESS OF MOVING FORWARD.

YOU NOTICE IN FY 2024, A NORTHEAST SERVICE SAYINGS AND PUMP FOR $37 MILLION. THAT IS NOT CASH FINANCED.

WE ARE CURRENTLY IN DESIGN WORK ON THAT PARTICULAR PROJECT.

WHEN THAT DESIGN WORK IS COMPLETE, WE ARE ANTICIPATING THE NEED TO ISSUE DEBT FOR THIS PROJECT.

IT IS JUST TOO BIG OTHERWISE. BUT THAT -- JUST A CAVEAT ON THAT. THE VAST MAJORITY OF THE REST OF THIS IS INTENDED TO BE CASH. THERE WILL BE SOME SMALLER ISSUANCES BUT INTENDED TO BE CASH.

ON THE AIRPORT OPERATING FUND, AGAIN, THIS -- WE MADE THE AIRPORT AN ENTERPRISE FUND A FEW YEARS BACK.

YOU CAN SEE TOTAL REVENUES OF $2.3 MILLION.

DURING THE COVID RESPONSE, THE FEDERAL MONEY THAT WAS ALLOCATED FOR RELIEF SPECIFICALLY FOR AIRPORTS AS -- AS AIR TRAVEL WAS IMPACTED HELPED US BULLY UP THE AIRPORT FUND.

IT WAS FREE FEDERAL MONEY. GIVEN FOR THE PURPOSE.

WE USED IT FOR THAT PURPOSE AND IT IS NOW GONE.

SO YOU WILL SEE THAT WE ARE SPENDING $940,000 LESS THAN NECESSARY. THAT MONEY IS BEING MADE UP THROUGH TRANSFERS. BUT -- SORRY, THAT IS AN INTENTIONAL SPEND DOWN OF THE FUND BALANCE.

DON BELIEVES THAT WHEN WE HAVE THE RETAIL DEVELOPMENT, THE

[00:25:04]

WE MAY NEED TO SEE A GENERAL FUND TRANSFER NEXT YEAR, BUT BY FY '24. EXCUSE ME FY '25, HE THINKS WE WILL HAVE BUOY REVENUE COMING IN.

MAY SEE TRANSFER FROM THE GENERAL FUND TO OFFSET THAT LOSS, BY FY '26, SALES BY THE BUOYS WILL ENCOURAGE THAT WITH INCREASED FUEL CELLS WHICH IS ONE OF THE FEE CHANGES ON THE

FUEL FLOWAGE INCREASE. >>MAYOR HURT: ROBERT, ON IN ONE, WE ARE NOT SHOWING ANY FY 2024 FEDERAL GRANTS, BUT I KNOW WE ARE PURSUING SOME OF THOSE. DO WE JUST NOT PLAN FOR THOSE AND IT IS GRAVY IF WE GET THEM, THAT HOW WE APPROACH IT?

>>ROB HANNA: THEY ARE TIED TO PROJECTS, IF WE GET THOSE, THEY WILL FUND PROJECTS. BUT, YES, WE DON'T ASSUME WE WILL GET THEM UNLESS WE GET THEM.

>> MOST OF THESE PROGRAMS HAVE MATCHES.

DO THOSE PROGRAMS -- DO WE BUDGET FOR THE MATCH PORTION OF THAT? OR AS IT COMES UP.

>>ROB HANNA: AS IT COMES UP. THAT MATCH FROM MIP OR THE PASSENGER FACILITY CHARGES DEPENDING ON THE ABILITIES OF THE CHARGES IN THAT GRANT. BUT THERE IS -- THERE WILL BE FUNDING AVAILABLE TO COVER THAT 10

10%. >> THE REASON I WAS ASKING OF THE MATCHES, WE ARE DOING AN INTENTIONAL SPEND DOWN.

WOULD IT NOT BE APPROPRIATE FOR THE MATCH FOR THE AIRPORT OUT.

AIRPORT FUND? >>ROB HANNA: HOW WE WOULD DO IT TRANSFER TO THE AIRPORT FUND AND THE AIRPORT WOULD PAY FOR IT.

FROM THE MIP TO THE AIRPORT FUND TO SPEND DOWN.

>> OKAY. >>ROB HANNA: SERVICE FUND, $20 MILLION. $20.9 MILLION, ALMOST $21 MILLION. TOTAL EXPENDITURES OF 20.8.

YOU WILL SEE OUR FUND PAL IS FAIRLY STEADY BETWEEN -- BALANCE IS FAIRLY STEADY BETWEEN REVISED AND THE PROPOSED BUDGET.

CAPITAL EXPENDITURES. WE ARE RECOMMENDING FEE INCREASES WHICH WE WILL GET TO IN JUST A SECOND.

STORMWATER FUND. 7.4 MILLION IN REVENUES AND 3.9 MILLION IN EXPENDITURES. I WILL SAY THIS.

HISTORICALLY, WE HAVE SEEN A DEFICIT FUND BALANCE.

WE SPENT MORE THAN WE BROUGHT IN.

AND WE DRAWN DOWN THE FUND BALANCE, BUT STORMWATER TYPICALLY DOESN'T SPEND ALL THE MONEY THAT THEY ARE APPROVED THROUGH THE FISCAL YEAR FOR A VARIETY OF REASONS.

IT COULD BE PERSONNEL. IT COULD BE A DELAY IN PROJECTS.

HISTORICALLY, THEY HAVE BEEN ABLE TO GROW THEIR FUND BALANCE.

I HAVE SAID THIS NOW I THINK TWO OR THREE YEARS IN A ROW BUT WE NEED TO HAVE A DISCUSSION ON THE STORMWATER RATES.

THE STORMWATER MASTER PLAN. FIRST PROJECT WE TRIED TO DO CAME IN SUBSTANTIALLY OVER THE ENGINEERING ESTIMATE OF PROBABLE COST. THEY HAVE DONE SMALL PROJECTS AND OTHER BIG FISH WE ARE ABLE TO TACKLE BECAUSE OF REVENUES PRESENT. WE NEED TO HAVE CONVERSATIONS WHAT WE WILL DO THERE AND DO THAT DURING FISCAL YEAR 24.

DURING THE 12-MONTH BUDGET PERIOD.

COME TO COUNCIL AND HAVE DISCUSSIONS THAT WE ADOPTED THIS MASTER PLAN. MAKE SURE WE ARE IMPLEMENTING IT AND WE HAVE REVENUES TO DO THAT. IF WE ARE GOING TO AVOID DEBT SERVICE, WHICH I THINK WE SHOULD, WE NEED TO LOOK HOW WE STRUCTURE THE RATES TO DO THAT. THAT IS A CONVERSATION WE WILL

HAVE TO HAVE IN FY '24. >>MAYOR HURT: DO YOU HAVE A TIME

FRAME IN MINDS? >>ROB HANNA: I DO NOT HAVE A TIME FRAME IN MIND. I WANT TO MAKE SURE WE GIVE YOU GOOD DATA. MICHAEL AND I PUTTING THIS PROCESS TOGETHER REALIZED WE PROBLEM NEED AN INFLUXATION OF RATES, ANALYSIS OF THAT AND BRING THAT TO YOU.

THE FIRST STEP IS AN ITEM TO APPROVE A CONTRACT TO ANALYZE THE RATES WHERE WE WANT TO BE FROM A REVENUE COLLECTION STANDPOINT TO FUNDS THE IMPROVEMENTS.

WE DID A MAJOR RATE STUDY ALREADY, PROBABLY ABOUT THREE OR FOUR YEARS NOW. SO WE DON'T NEED TO START FROM CRASH. WE NEED TO UPDATE THOSE NUMBERS.

IT WON'T TAKE FOREVER, BUT SOME MONEY AND I WANT TO MAKE SURE YOU ARE AWARE OF IT AND IT WILL COME TO Y'ALL.

>> HE WITH LOOK AT THE PROJECTS AGAIN AS WELL?

>> ABSOLUTELY, SIR, 100%. >> THREE OR FOUR CHANGES SINCE

WE ADOPTED THAT. >>ROB HANNA: ABSOLUTELY.

WE CAN LOOK AT ALL THE PROJECTS AGAIN.

YES. SELF-INSURANCE FUND.

I AM GOING TO PAUSE HERE AND GO THROUGH SOME OTHER SLIDES ASSOCIATED WITH THIS, BUT $16.6 MILLION IN REVENUES.

$16.7 MILLION IN EXPENDITURES. OVERSPENDING THE REVENUES BY

[00:30:01]

SO WE ARE FUNDING A PORTION OF A HEALTH SAVINGS ACCOUNT FOR THE EMPLOYEES. I AM GOING TO GET INTO THAT RIGHT NOW. THIS IS OUR CURRENT HEALTH PROGRAM. WE HAVE A BASE PLAN AND A BUY OUT PLAN ASSOCIATED WITH THAT. WE DO NOT IN THIS SLIDE FROM A COMPARISON WITH OUR PEER CITY AND LOCAL ENTITIES.

WE ARE PAR FOR THE COURSE HISTORICALLY WHEN WE GO THROUGH THIS. WE DO NOT FIND THAT WE ARE OUT OF MARKET. SOME OF OUR RATES -- SOME OF OUR PLANS ARE HIGHER. SOME OF OUR PLANS ARE LOWER AND WE ARE PRETTY MUCH IN THE MIDDLE.

FOR PROPOSAL FOR NEXT YEAR, SO -- OUR RATES INCREASE TO THE EMPLOYEES. THE -- THE CITY CONTRIBUTION ALSO INCREASES. THE PROPOSED PLAN HAS NOW FOR '24 HAS THREE PLANS INSTEAD OF TWO.

THE BASE PLAN, THE BUYOUT PLAN, AND HIGH DEDUCTIBLE HEALTH PLAN.

BUT REALIZE THAT THE RATES ON THE HIGH DEDUCTIBLE HEALTH PLAN ARE LOWER THAN THE BASE OR THE BUYOUT PLAN.

THE REASON WHY THAT IS IS BECAUSE THOSE WHO MAY HAVE A HIGH DEDUCTIBLE HEALTH PLAN AT HOME, THE FIRST COLOR COST OF YOUR HEALTH CARE COME OUT OF YOUR POCKET.

SO YOU HAVE TO MEET YOUR DEDUCTIBLE AND OUT-OF-POCKET MATCH BEFORE THE PLAN PAYS FOR EVERYTHING.

YOU GET THE NEGOTIATED DISCOUNTS, RIGHT.

BUT IF YOU HAVE THE -- FOR EXAMPLE, IF, GOD FORBID, YOU HAVE A CONTRACT, YOU WILL PAY $9,000.

THEN THE PLAN COMES 100%. IF YOU HAVE A STROKE, YOU ARE NOT PAYING ANYTHING AFTER THAT. SEPARATE EVENTS, HOPEFUL LY.

THIS IS THE WORST-CASE SCENARIO OBVIOUSLY.

BUT THE PLAN -- THE INTENT IS TO PROVIDE.

HIGH DEDUCTIBLE HEALTH PLANS ARE CONSIDERED CATASTROPHIC COVERAGE. THOSE EMPLOYEE WHO WANT HEALTH CARE THAT ARE HEALTHY. GENERALLY HEALTHY, A GREAT PLAN FOR THEM ESPECIALLY IF THEY KNOW THEY DON'T REASON IS A LOT OF HEALTH EXPENSE THROUGHOUT THE YEAR.

ALTERNATIVELY IF YOU KNOW YOU HAVE A LOT OF HEALTH EXPENSES, IN IS SAVE YOU MORE MONEY THAN YOUR OTHER PLANS.

YOU MEET YOUR OUT-OF-POCKET MAXIMUM.

ANALYSIS THAT NEEDS TO COME FROM THE EMPLOYEE, IF YOU WERE A HIGH USER, THIS MAY BE A COST SAVER FOR YOU.

PTD -- THE CITY WILL OFFSET THE EMPLOYEE PER MONTH TO OFFSET THE COST OF COVERAGE. IN ADDITION TO THAT, RECOMMEND A CONTRIBUTION TO THE EMPLOYEE CONTRIBUTION PLAN FOR EMPLOYEES THAT SIGN UP FOR THIS. THIS MAY BE CONTINUED IN FY '25 IF COUNCIL WANTED TO, BUT WE ARE PROJECTING THIS AS A ONE-TIME ENTICEMENT. THAT IS WHY YOU SEE THE DEFICIT IN REVENUE -- OR THE MORE EXPENDITURES IN REVENUES THAN ON THE PREVIOUS SLIDE THERE, BECAUSE WE ARE FUNDING THAT 750.

LOOKING AT THE HEALTH CONTRIBUTIONS COMPARED TO REVENUES. THE LIGHT BLUE LINE IS THE CONTRIBUTIONS, THE REVENUES IN THE SYSTEM AND THE DARK BLUE IS THE HEALTH CLAIMS. YOU WILL SEE THAT WHEN WE SWITCHED IN 2015, WE SWITCHED D SWITCHED FROM BLUE CROSS BLUE SHIELD TO AETNA AND MAGICALLY, ALL OF OUR COSTS WENT THROUGH THE ROOF. AND THEN YOU SAW REVENUE GO UP.

THOSE WERE CHANGES WE MADE BECAUSE CLEARLY 2016 WASN'T SUSTAINABLE. WE WORKED VERY, VERY HARD OVER THE LAST SIX, SEVEN YEARS TO BE ABLE TO GET TO A POINT WHERE WE HAVE REVENUES THAT ARE FULLY FUNDING OUR CLAIMS COSTS.

I AM NOT WORRIED OF THE FACT THOSE TWO BARS ARE FLIPPED IN 2024 BECAUSE I KNOW WHY IT IS HAPPENING AND IT IS QUITE POSSIBLE THAT THERE COULD BE ADDITIONAL SAVINGS AND WE ARE PROJECT GOING PEOPLE HAVE A HIGH DEDUCTIBLE PLAN SHOW PLANT SAVINGS. WE ARE NOT PROJECTING IT NOW, BUT IT MIGHT DEPENDING ON USAGE. NEXT YEAR FOR FY '25, I EXPECT THAT BAR TO BE BACK FOR REVENUES HIGHER THAN EXPENSES.

ANY QUESTIONS ON THE HEALTH PLAN?

>> ROBERT, WHAT HAPPENED BETWEEN 2020 AND 2021 WHERE THEY FLIPPED

IN -- >> WE SWITCHED BACK TO BLUE CROSS BLUE SHIELD. YEAH.

WE MADE ADDITIONAL REVENUE ENHANCEMENTS AND SWITCHED BACK TO BLUE CROSS BLUE SHIELD, WHICH SURPRISE, OUR CLAIMS DROPPED AGAIN. ONE OF THE REASONS WHY NO SECRET

[00:35:01]

THEY ARE THE LARGEST INSURANCE IN THE STATE OF TEXAS AND BRING THAT MARKET STRENGTH TO BEAR. DISCUSSIONS AND QUESTIONS THAT SOME OF YOU HAVE ASKED IS IT TRUE THAT BLUE CROSS BLUE SHIELD IN HENDRICK STILL DON'T HAVE BE A AGREEMENT? MY UNDERSTANDING THEY HAVE AN AGREEMENT IN PRINCIPLE, AND THEY ARE WORKING ON DOCUMENTING THAT FROM A LEGAL CONTRACT STANDPOINT, BUT I HAVE ASSURANCESES FROM BLUE CROSS BLUE SHIELD AND HENDRICK THAT IT IS GOING TO HAPPEN THAT THE WHEELS ARE NOT FALLING OFF AND ATTORNEYS ARE SIMPLY

NEGOTIATING. >> ROBERT, DO ANY OF OUR PLANS

HAVE HEALTH SAVING ACCOUNTS? >>ROB HANNA: IF WE ADOPT THE PROGRAM THAT WE ARE RECOMMENDING, IT WOULD HAVE A

HSA. >> WILL THE CITY CONTRIBUTE ANY

OF THAT OR IS IT JUST. >> $750.

>> THAT CONTRIBUTION TO T THE HDHP.

>>ROB HANNA: YES. GOOD QUESTION.

>>ROBERT HANNA: STREET MAINTENANCE FUND.

REVENUES OF $16.6 MILLION. A PLANNED OVERSPEND.

AS WE GO THROUGH THE DESIGN AND CONSTRUCTION CYCLE, IT -- IT EBBS AND FLOWS. STUFF IN DESIGN.

STUFF IN CONSTRUCTION. THE MONEY IS THERE.

WE TRY TO SPEND THE MAXIMUM WE CAN EVERY YEAR ONCE THE DESIGNS ARE READY. YOU WILL SEE A PLANNED EXPENDITURES OF $16.6 MILLION FOR FY '24 FOR FUND BASIS.

THESE ARE SOME OF THE PROJECTS WE HAVE LINED UP FOR NEXT FISCAL YEAR. AND THE FISCAL YEAR IS FOLLOWING. THE STREET MAINTENANCE BOARD GOES THROUGH THESE. AND WE LOOK AT STREET MAINTENANCE OPPORTUNITIES IN ADDITION TO OTHER MAINTENANCE TYPES. SO THIS IS A LIST OF ALL THE DIFFERENT MAINTENANCE TYPES THAT WE DO.

AND THE STREET MAINTENANCE FUNDS FOR '22 AND '23.

FROM AN ANTICIPATED CPI INDEX. IT HAS BEEN ASKED IF WE ARE MAKING PROGRESS. OVER THE FIVE-YEAR PERIOD, WE DO ANTICIPATE PROGRESS BEING MADE. NOT THE CASE FOR THE FIRST FIVE YEARS. NOT FUNDED THE AMOUNT THAT NEEDED TO BE INTENTIONALLY SO. I THINK THE EXPRESSION BY MAYOR WILLIAMS, THE TIME IS TOO MUCH, TOO SOON.

AND WE AVOIDED A PLANNED INCREASE WHICH IS THE OTHER PART OF IT. WE HAD A PLANNED INCREASE TWO YEARS OR THREE YEARS INTO THE PROGRAM THAT WE FOREGO BEFORE OF COVID-19 AND THE PANDEMIC. WE MADE THAT INCREASE LAST YEAR.

AND THAT REVENUE INCREASE IS -- IS A FUNCTIONAL RESULT OF THE IMPROVED PCI. FIRE APPARATUS FUND.

YOU HAVE A FUND PAL OF -- BALANCE OF 1.5.

BRUSH TRUCK, CARDIAC AND THREE-QUARTER-TON PICKUP IS WHAT

WAS PLANNED FOR EXPENSE. >> ROBERT, ON THAT SLIDE, ONE MORE BACK. ON THE STREET MAINTENANCE FUND.

>>ROB HANNA: YES. >> LAST YEAR REVISED '22-'23.

10 MILLION. THIS PROPOSED ONE THANKING JUST OVER $15 MILLION, $14.6 MILLION. THAT INCREASE OF ROUGHLY $4 MILLION. IS THAT BULK OF THAT DUE TO INFLATION? IS THAT BECAUSE WE ARE RAMPING UP PROJECTS? COVERING MORE STREETS? WHAT IS THAT $14 MILLION GOING OUT FOR.

>> A COMBINATION OF ALL THAT. WE HAVE PROJECTS AND THINGS HAVE GOTTEN MORE EXPENSIVE. MORE PROJECTS THAN ANYTHING

ELSE. >> WE ARE GETTING MORE STREETS REPAVED THAN WE WERE TWO YEARS AGO IN GENERAL?

>>ROB HANNA: YES, THAT IS WHY THE PCI IS ANTICIPATED TO GO UP BECAUSE MORE FUNDS TO FUND MORE PROJECTS, SIR.

>> ALL RIGHT. THANK YOU.

>>ROBERT HANNA: ON THE POLICE APPARATUS FUND, A FUND BALANCE STARTING OF $1.4 MILLION. AND FUND BALANCE ENDING OF $1.7 MILLION. YOU CAN SEE THE PROGRAMS IDENTIFIED FOR FY '24. THIS FUND -- A PORTION OF THIS FUND -- IS TO FUND ALL THE TOYS THAT POLICE NEED TO DO THEIR JOBS. THIS IS WHY WE PUT THEM AT 1.1 MILLION ANNUALLY. WE SET IN FUND UP.

THAT WAS THE REVENUE REQUIRED TO -- TO FUND THEIR PROGRAM OF SERVICES THAT THEY PUT TOGETHER. SO WE ARE FOLLOWING THAT PROGRAM OF SERVICES. AND YOU CAN SEE THE VARIOUS ITEMS WE ARE SPENDING MONEY ON. THE LARGEST EXPENSE IS THE BODY BORN CAMERA, IN CAR CAMERA SYSTEM ON A FIVE-YEAR LEASE

[00:40:02]

THEY HAVE A LIFE CYCLE. THE REASON WE GOT -- PROBABLY TWO YEARS OUTS OF THEM AGAIN BEFORE WE HAVE TO START REPLACING THEM. EVENTUALLY BATTERIES FAILED AND CAMERA AND TECHNOLOGY ALSO CHANGES AND YOU GET A BETTER

PRODUCTS. >> ON THIS ONE --

>>ROBERT HANNA: YES, SIR. >> THE MOUNTED PATROL.

SO FOR '23, WE BUDGETED 26,250. THE ACTUAL REVISED WAS 31,000.

AND THIS YEAR, WE ARE INCREASING THE AMOUNT WE ARE BUDGETING FROM LAST YEAR. BUT WAS THAT A BUNCH OF ONE-TIME COSTS? OR WERE YOU NOT EXPECTING THAT? OR UNDERBUDGETING FOR THE AMOUNT OF PATROL.

>> WE BELIEVE WE ARE BUDGETING APPROPRIATELY.

ONE-TIME COSTS AND PATROL WENT FROM -- FROM A -- FROM A PUBLIC RELATIONS OPPORTUNITY AND PROGRAM.

THEN IT WAS GOING TO BE RAMPED UP INTO A FULL-TIME DUTY ASSIGNMENT. THEY HAD -- THE POLICE DEPARTMENT HAS SINCE SAID, NO, WE ARE NOT GOING TO DO THAT.

AND SOME -- SOME EXPENDITURES WERE ACTUALLY STOPPED IN THE MIDDLE OF THE YEAR OF THE REANALYSIS.

THEY WILL KEEP IT AS LIMITED PATROL DOWNTOWN AND PREDOMINANTLY TO BUILD GOOD WILL DURING THE PARADE.

AND THEY WILL USE IT. SO IF YOU WERE SEARCHING IN THE MIDDLE OF A FIELD FOR SOMETHING, MOUNTED PATROL.

AND OPPORTUNITY TO USE BOTH COULD BE HELPFUL.

>> THANK YOU. >>ROBERT HANNA: YES, SIR.

>> ON THESE FUNDS, POLICE AND FIRE.

ARE THEY SEPARATE ACCOUNT FUNDS. >>ROBERT HANNA: THEY ARE

SEPARATE FUNDS. >> THE REASON I ASK, WE HAVE A BALANCE OF THE FIRE PROJECTED 1.5.

ON THE POLICE, PROJECTED TO BE 1.7.

WITH THE SAVING RATES CHANGING AND HISTORICALLY BEING HIGH THIS YEAR, ARE WE -- ANY MONEY LEFT IN THE FUND AT THE END.

ARE WE GENERATING INTEREST JUST FROM A -- KEEPING IT IN A

SAVINGS ACCOUNT? >> SO, IT WILL BE WRAPPED UP WITH THE CITY'S SWEEP ACCOUNT, WHEN WE PUT OUR MONEY FOR THE -- EACH OF THESE FUNDS DON'T NECESSARILY HAVE THEIR OWN SAVINGS POD. SWEPT UP -- TWO OR THREE PROGRAMS THAT WE USE. THE REVENUE AND THE WATER AND SEWER FUND. SOMETIMES IT IS EAR MARKED FOR BOND FUNDS AND BOND REVENUE THAT HAVEN'T BEEN SPENT YET THAT NEEDS TO BE SEGREGATED. THE INTENT OF THAT IS TO HAVE THAT DOLLAR AMOUNT INCREASE YEAR AFTER YEAR.

IF -- YOU MIGHT WANT TO AGE WHETHER OR NOT WE HAVE THE INTEREST FROM THIS GOING SPECIFICALLY TO THAT.

I DON'T KNOW THAT OFF THE TOP OF MY HEAD.

CAN YOU HELP -- >> INTEREST EARNINGS IN THE

REVENUE. >>ROBERT HANNA: THEN WE DO.

THE INTEREST GENERATED IN THIS FUND WILL STAY IN THIS FUND.

>> WILL IT BE PROPER TO VIEW THESE -- FROM THE COUNCIL'S PERSPECTIVE, VIEW THESE AS ENDOWMENT FUNDS.

THE MORE THE FUND ISN'T USED, THE MORE IF GROWS AND DEPARTMENT, POLICE, FIRE, WHOEVER, IS ALMOST ABLE TO LIVE ON THEIR -- ALMOST ON THEIR INTEREST?

>>ROBERT HANNA: NO, I WOULD SUGGEST THE OPPOSITE.

THE INTENT OF THIS IS TO FUND THE CAPITAL I'M TERMS NECESSARY TO OPERATE POLICE -- ITEMS NECESSARY TO OPERATE POLICE AND FIRE. WE STARTED WITH THE POLICE APPARATUS. AND IT WAS CREATED SEVERAL -- MANY, MANY YEARS AGO BUT NEVER ADEQUATELY FUNDED.

AND THEN -- SHANE, YOU MIGHT REMEMBER THIS --

>>SHANE PRICE: IT WAS -- WHEN I FIRST GOT ON THE COUNCIL, THAT WAS ONE OF THE CIPS WE WOULD DO. BORROW MONEY TO BUY THE FIRE APPARATUS ALMOST EVERY YEAR. AND WE HAD -- AFTER 2008, THE NEXT YEAR THE SALES TAX WENT UP ENOUGH ABOVE BUDGET THAT WE HAD EXTRA FUNDS. AND WE SET THAT ASIDE TO START THE FIRE APPARATUS FUND AND START PAYING AS WE GO FOR THOSE EQUIPMENT NEEDS. AND THEN HAVE EXPANDED THAT STREET MAINTENANCE APPARATUS AND TO BORROW LESS.

>>ROBERT HANNA: RIGHT, EARLY ON 2016.

AND WE STARTED PUTTING $1 MILLION A YEAR IN THE FIRE APPARATUS FUND. WE WORKED OUT A PROGRAM FOR CAPITAL ACQUISITIONS. WHEN THE GOES TO REPLACE A LADDER TRUCK, TANKER OR BRUSH TRUCK, LARGE DOLLAR ITEMS.

[00:45:01]

THAT IS ABOUT RIGHT. SO 2048 OR 2045.

I FORGOT OFF THE TOP OF MY HEAD. THEIR NEEDS ARE MET.

THE TIME WITH THE POLICE DEPARTMENT, THE MOTHER OF ALL SPREADSHEETS, ABOUT THIS LONG. WALKED THROUGH THE CAPITAL NEEDS THAT THEY KNOW THAT THEY NEED, PLAN NEED, WHAT NUMBER DO WE HAVE TO GET TO FUND THAT GOING FORWARD WITHOUT HAVING TO PURCHASE THE DEBT FINANCE RADIOS.

TO DEBT FINANCE CAMERAS, AND THAT IS WHY WE ARE AT THIS

PARTICULAR NUMBER WITH THEM. >> WHY I AM ASKING IS JUST SO I -- THIS MAY BE A COMBINATION FOR SHANE AND ROBERT, JUST BECAUSE YOU HAVE THE HISTORY BEHIND YOU, WHENEVER THE COUNCIL IS SEEING THESE FUND BALANCE ENDING IN 1.7 ON POLICE -- ON THE FIRE.

1.7, AND 800,000, 950,000, IS THE COUNCIL'S GOAL HISTORICALLY TO KEEP THAT NUMBER STEADY? WE NEED TO BE SPENDING IT DOWN? WE NEED TO BE INCREASING IT? WHAT IS THE GOAL FOR THE COUNCIL HISTORICALLY. AS A COUNCILMEMBER, HOW SHOULD I BE REVIEWING THAT. I SEE THE FUND BALANCE ENDING UP FROM 1.5 FROM LAST YEAR. AT 950.

IS THAT A GOOD THING? WE ARE NOT BUYING AS MUCH THIS YEAR. HOW SHOULD WE LOOK AT THAT.

>> SAVING FOR A FUTURE PURCHASE. >> IT THE MOST JUST GUESSING WE MIGHT NEED TO SPEND $2 MILLION IN THE NEXT TWO YEARS SO LET'S SET ASIDE 2 MILLION. NO, WE NEED TO BUY THIS AND THAT AND THIS AND THAT AND ADDED UP 1.63 MILLION AND WE NEED TO SET ASIDE 1.63 MILLION SO WE ARE NOT BORROWING AND WE ARE NOT TRYING TO BANK, JUST -- THE TEXAS ENTERPRISE FUND OR SOMETHING LIKE THAT MONEY IN THE BANK FOR A RAINY DAY THAT I DON'T KNOW HOW WE WILL THIS TO REDUCE TAXES.

WE HAVE DESIGNATED NEEDS AND SETTING ASIDE MONEY IN A MEASURED WAY SO IT IS NOT ALL CAUGHT UP AT ONCE AND DON'T HAVE

TO SPEND MONEY AND PAY INTEREST. >> THE MINOR IMPROVEMENT FUND, A SIMILAR SLIDE TO THIS ONE, BUT I WANTED TO GO THROUGH THE PROJECT LIST, BECAUSE JUST EASIER TO SEE IT THIS WAY.

SO, FOR PROPOSED EXPENSES FOR FY '24.

2.1 MILLION FROM THE ANIMAL SHELTER THAT COUNCIL APPROVED LAST MEETING. ADDITIONAL SYSTEM FACED ONE.

ENTERPRISE RESOURCE, MUNIS, $93,000.

THE PERIMETER FENCE OF THE ZOO THE MANDATE THAT WE HAVE BEEN PUTTING OFF FOR YEARS. WE GOT TO GET IT DONE.

$65,000. PART OF THE AYSA PROJECT RELOCATES THE DOG PARK. WE HAVE TO RELOCATE THAT.

$5,000 FOR PARK ROW LOCATION SHOULD GET THE NEED DONE WITH THE PROBABLE CAUSE THAT WE HAVE SEEN.

AND $150,000 FOR NELSON PARK PAVILION.

A USED PARK. ONE OF THE SMALLER PARKS AAND UNFORTUNATELY TO THE NEIGHBORHOOD.

AND IT COULD SHALL ANYTHING THAT THE NEIGHBORHOOD THINKS THEY NEED. AND WHAT WE WOULD SUGGEST, WE DO SOMETHING SIMILAR TO STEVENSON PARK.

WE NIGHT WITH THE MEMBERS OF THE COMMUNITY.

WE SHOW THEM, HEY, HERE IS THE EARMARK AND HERE ARE COMES THINGS THAT WE CAN GET DONE FOR THAT PARTICULAR FUNDING AMOUNT AND ALLOW THEM TO HELP THEM CHOOSE THE IMPROVEMENT THAT IS FITTING FOR THEIR NEIGHBORHOOD RESOURCE.

$1.5 MILLION FOR THE ROSE PARK PICKLEBALL COURTS.

I WILL ALSO SAY THAT THERE IS ONGOING COMMUNICATIONS WITH TENNIS ADVOCATES OF INCREASING THE NUMBER OF TENNIS COURTS AT THE ROSE PARK TENNIS CENTER. AND I HAVE GOT MEETINGS SET WITH THE COMMUNITY FOUNDATION OF ABILENE AND THOSE CONCERNED INTERESTS IN LESLIE ANDREWS OF THE PARKS DEPARTMENT TO CONTINUE TO ENGAGE WHAT A PUBLIC, PRIVATE PARTNERSHIP MIGHT LOOK LIKE FOR ADDITIONAL ROSE PARK TENNIS CENTER IMPROVEMENTS.

IF YOU HAVEN'T BEEN IN THAT FACILITY, IT IS USED EXTENSIVELY BY THE PUBLIC AND IT HAS BEEN CARED FOR, BUT IT IS OLD.

AND IF WE ARE GOING TO TALK ABOUT PUTTING SUBSTANTIAL MONEY INTO NEW COURTS, IT MAY BE ALSO WORTHWHILE TO TALK ABOUT

[00:50:04]

WHEN I WENT TO REVIEW WHERE THESE MIGHT GO.

AND I WILL JUST SAY IT WELL EXCEEDED ITS OPERATIONAL LIFE.

AND I THINK OUR CITIZENS DESERVE BETTER THAN THAT PARTICULAR BATHROOM FACILITY. I AM NOT TALKING OF THE CLUBHOUSE BUT THE BRICK BUILDING ACROSS THE STREET FROM IT THAT WE ONLY OPEN UP ON CERTAIN OCCASIONS.

THE TEAM HAS DONE A GREAT JOB OF TRYING TO MAINTAIN IT.

YOU CAN'T CLEAN OLDS. IT IS TIME TO REPLACE IT.

THEN $300,000 SET-ASIDE FOR BASEBALL, SOFTBALL LEAGUE GRANTS. THE CONCEPT HERE WOULD BE TO HELP FUND THESE SORT OF REQUESTS.

AND TO CREATE AN OPPORTUNITY WHERE PERHAPS THIS IS A REOCCURRING OPPORTUNITY.

NO. NOUS NOT JUST A ONE-TIME OPPORTUNITY BUT ALLOW THE LEAGUES TO APPLY FOR THEM.

IF A LEAGUE GETS A GRANT, MAYBE GET A GRANT THE FOLLOWING YEAR WE NEED TO BE JUDICIAL ABOUT THIS BECAUSE THERE IS MORE THAN PONE LEAGUE. THAT MONEY WILL SET US UP TO MAKE IMPROVEMENTS TO FACILITIES. A GREAT PUBLIC-PRIVATE PARTNERSHIP WITH HOW WE DO YOUTH SPORTS.

AND YET, WE HAVE NOT PUT THE MONEY IN OUR FACILITIES TO KEEP THEM MAINTAINED. THIS WOULD ALLOW USES TO DO THAT AND SPEND IT IN A MAN THEIR PUT THE PARENTS THAT ARE INVOLVED IN THE YOUTH SPORT PROGRAM MANAGING THE LEAGUES IN AN OPPORTUNITY TO BE ABLE TO HELP MAKE SOME OF THE DECISIONS ON HOW THOSE CAPITAL DOLLARS WERE SPENT. THAT IS THE THOUGH PROCESS BEHIND THAT. $6 MILLION FOR THE NELSON PARK FLAT FIELDS, THE AYSA SOCCER PROGRAM.

RECALL THAT THE ORIGINAL AS CAN WAS $5 MILLION.

IN ORDER TO MEET THEIR PROJECT FUNDING WE NEEDED TO PUT ANOTHER $1 MILLION IN. AND THEN THERE WILL BE A SERIES OF -- OVER FIVE -- OVER A FIVE TO SEVEN-YEAR PERIOD DEPEND WILLING ON HOW IT GOES. THEY WILL NEED TO MAKE AN ANNUAL PAYMENT BECAUSE PREFUNDING WITH SOME OF THEIR ENDOWMENT MONEY SOME OF THE COST OF PUBLIC IMPROVEMENTS.

THAT IS ALL COMING TO YOU LIKELY IN AUGUST.

THE AGREEMENT ASSOCIATED WITH THAT AND GIVING THE DETAILS THERE, BUT FROM THE BUDGET PURPOSES, YOU NEED TO KNOW THAT $6 MILLION IS EAR MARKED FOR THE FLAT FIELDS.

AND THEN ON -- ON MICRO WAVE RADIO SYSTEMS. SHANE, YOU WILL KNOW THE HISTORIES ON THIS.

AND KYLE YOU PROBABLY WILL TOO. BUT WE SPENT, GOSH, THE LAST EIGHT YEARS WORKING TO REPLACE OUR RADIO SYSTEM.

AND THIS IS THE FINAL COMPONENT OF THAT.

WE HAVE SPENT MILLIONS AND MILLIONS OF DOLLARS AND DEBT FINANCED THE VAST MAJORITY OR ALL OF IT AT THAT POINT.

THIS IS THE FIRST -- FEW TIMES WE ARE ABLE TO BRING CASH TO THE TABLE TO REPLACE IT. CREATES THE REDUNDANCIES WE NEED TO OPERATE OUR RADIO SYSTEM FOR FIRE AND POLICE AND REPLACEMENT OF OUR MICROWAVE SYSTEM. ALSO MONEY WE HAVE SETTED A SIDE. PREVIOUS ISSUE WITH DEBT.

CLOSER TO $1 MILLION TOTAL, BUT WE ARE ONLY NEEDING $743,000 IT MIGHT TO BE COVER THAT. THE FINAL ITEM ON THE LIST IS $2 MILLION FOR AIRPORT RAMP IMPROVEMENTS.

RECALL THAT THE STATE OF TEXAS WAS GENEROUS TO FUND $20 MILLION FOR FIRE RAMP IMPROVEMENTS FOR A NEW TEXT FOR SERVICE FIRE BASE.

AND WE HAVE A MATCH COMPONENT TO THAT AND WHAT THAT $2 MILLION IS FOR. IT HAS AN ASTERISK NEXT TO IT, BECAUSE DEBT FINANCING OPPOR OPPORTUNITY. THAT ASSET WILL BE WITH US FOR WELL OVER 20 YEARS. IF COUNCIL WANTED TO CONSIDER DEBT FOR THAT, SOMETHING THEY COULD.

TO THE CLEAR, WE DON'T NEED TO. WE HAVE THE CASH ON HAND TO BE ABLE TO DO IT. IT IS AN OPPORTUNITY AND WANT THE OPPORTUNITY TO PRESENT IT BE TO YOU ALL.

THE DOWNSIDE AT A COUPON RATE A MILLION DOLLAR WORTH OF INTEREST. FROM CASH FINANCING IT, WE ARE SAVING THE TAXPAYER A MILLION BUCKS.

THE TAX RATE INCREASE OR IMPACT ON THAT IS LESS THAN A PENNY.

2.4 CENTS. NOT $.24, BUT.2-4.

LESS THAN A PENNY ON THE TAX RATE BUT COSTS $1 MILLION DUE TO THE PROJECT COST DUE TO INTEREST.

>> THIS IS A QUESTION I ALREADY KNOW THE ANSWER, BUT IF WE WERE TO GO THE ROUTE, THERE ARE OTHER OPPORTUNITIES FOR THAT 2 MILLION

[00:55:01]

TO IT BE SPENT ELSEWHERE? >>ROBERT HANNA: YEAH, THE VALUE PROP ARE SIGNIF-- PROPOSITION Y SPEND MONEY AND INSTEAD OF $1D MILLION, YOU HAVE A $3 MILLION OR 3.4 MILLION THAT COUNCIL CAN ALLOCATE TO PROJECTS. WE WILL GET INTO A SLIDE OF A BOND ELECTION IN NOVEMBER. I WILL SAY IF COUNCIL WANTS TO MOVE FORWARD AND ASK THE PUBLIC FOR A BOND ELECTION THAT WILL HAVE TAX RATE IMPACT THAT IS MEANINGFUL, WE MAY NOT WANT TO ISSUE DEBT FOR THIS AND JUST CONTINUE WITH THE PAY-GO MODEL.

A POLICY DISCUSSION AT THAT POINT IN TIME.

>> THANK YOU. >> FOR THIS AIRPORT RAMP FINANCING ASSOCIATED WITH THAT, WE WILL LEASE THE GROUND TO, I GUESS, ABILENE OR PRIVATE ENTITY WHO WILL BUILD FACILITIES FOR THEM TO OPERATE OUT OF. ARE THOSE FACILITIES THEN GOING TO GENERATE TAXABLE REVENUE FOR US?

>>ROBERT HANNA: TOM, WHY DON'T YOU EXPLAIN THE INNER WORKINGS

OF THIS PROGRAMMING. >> SO WHERE I AM GOING WITH THIS

IS. >>ROBERT HANNA: THANK YOU.

>> -- IF WE ARE FUNDING $A MILLION IN FINANCING.

IS THIS OFFSET BY THE REVENUE THAT WE WILL GET FROM ADDITIONAL FUEL CELLS FOR FROM PROPERTY TAX OR LEASING OR, YOU KNOW, ALL

THOSE SOURCES? >> I DON'T KNOW IF IT WILL BE 100%. IT WILL OFFSET SOME, BUT THE REALITY OF IT, WE ALREADY HAVE A DEFICIT IN THE AIRPORT FUND AND THAT REVENUE CAN GO TO OFFSET THE ACTUAL OPERATIONAL COST DEFICIT. DON, YOU WANT TO EXPLAINED.

>> DON GREEN: DON GREEN, DIRECTOR OF SERVICES.

AND WE HAVE A NOMINAL LEASE WITH THE TEXAS A&M FOREST SERVICE FOR THE AREA THEY CURRENTLY OPERATE OUT OF.

I ANTICIPATE -- THEY AREN'T THERE FULL TIME.

THEY -- THEIR INTENT IS STILL JUST TO BE HERE EVEN WITH ACT EXPANDED RAMP AS THE FIRE SEASON GETS WORSE AND THEY HAVE TO ACTIVATE IT HERE. AGAIN, GOING FORWARD WITH A NEW LEASE WITH THEM FOR A LARGER AREA, IT WILL STILL BE A VERY NOMINAL LEASE. MORE THAN LIKELY, IT WILL JUST BE ENOUGH TO PAY FOR OUR MAINTENANCE COSTS ASSOCIATED WITH THAT RAMP. WE HAVEN'T DONE.

PLUS A WARRANTY PERIOD AND CRACK REPAIR, WALL REPAIR ON THE CONCRETE ITSELF. WE WILL LEASE SOME LAND TO ABILENE AIR MORE THAN LIKELY BECAUSE OF THE CREW LOUNGE THEY PLAN TO BUILD THAT WILL BE AT OUR CURRENT LEASE RATE SO WE WILL ANTICIPATE SOME REVENUE -- WE WILL HAVE REVENUE FROM THE AIR TANKER ACTIVE AND BUYING FUEL, WILL GET THE FEE AND IMPACT FEE FROM PRESIDENT AIRCRAFT, THE LARGER ONES.

MOSTLY JUST OPERATING-TYPE REVENUE.

I DON'T THINK WE WILL HAVE THE REVENUE TO SUSTAIN AND SUPPORT A DEBT SERVICE LIKE. $2 MILLION OVER $10, 15 YEARS OR SO. JUST NOT GOING TO BE LARGE

ENOUGH. >>ROBERT HANNA: THANK YOU, DON.

>> ROSE BALL PICKLEBALL COURTS, 1.

IN ADDITION TO THAT, THE CLUBHOUSE AND MAYBE REST ROOMS. WOULD THE CLUBHOUSE AND THE REST ROOMS INCLUDED IN THE 1.5? OR THE COUNCIL KIND OF BUDGET MORE FOR THAT DOWN THE ROAD?

>>ROBERT HANNA: NO, IT WILL COME OUT OF THE DISCUSSIONS THAT I AM GOING TO HAVE WITH THE ABILENE COMMUNITY FOUNDATION AND THE TENNIS ENTHUSIASTS. THEY HAVE A DESIRE TO BUILD FOUR COVERED COURTS AND APPEAR 16TH UNCOVER COURTS.

AND WHAT THEY ARE PROPOSING IS PRIVATE FUND RAISING FOR A PORTION OF THAT HOW MUCH WE HAVE YET TO BE DETERMINED.

THAT IS PART OF THE DISCUSSIONS. AND WHAT WE WILL DO IS BRING SOMETHING FORWARD TO THE COUNCIL.

SIMILAR TO AYSA BECAUSE WE WOULDN'T BE OUTSOURCING TENNIS LIKE THE FLAT FIELDS OR THE BASEBALL AND VOLLEYBALL, THE WOULDN'T BE A SITUATION WITH A THIRD PARTY THAT LEASES THE FACILITY FOR US. THE TENNIS CENTER, THE GENTLEMAN THAT RUNS THAT, WILL BE RESPONSIBLE UNDER HIS LEASE FOR THAT. A PUBLIC, PRIVATE INVESTMENT AND TO CONSTRUCT THE NEW COURTS. ONE OF THE THINGS I WANT TO TALK TO THEM ABOUT IF WE ARE GOING TO DO THIS.

LET'S ENVISION A TENNIS CENTER ON A REGULAR BASIS FOR RECRUITING TOURNAMENTS. A KEY DRIVER IN

[01:00:05]

IT JUST NEEDS A LITTLE TLC. PUT MONEY TO CREATE AN ENVIRONMENT THAT IS COMPETITIVE FOR OUR PEERS FOR YEARS TO COME.

I DON'T KNOW THE INFORMATION UNTIL CONVERSATIONS TAKE PLACE.

>> MOST LIKELY COVERED BY THE PRIVATE SIDE, IS THAT ACCURATE?

>>ROBERT HANNA: IT WOULD BE -- I HOPE A LARGE PORTION THROUGH PRIVATE GENERATION. BUT I JUST DON'T KNOW YET.

THE REASON WHY WE ARE HAVING A CONVERSATION WITH THE COMMUNITY FOUNDATION. THEY WILL BE -- LIKE THE CUSTODIAN OF THE FUNDS. THE CUSTODIAN OF THE FUNDS.

LET'S SAY 50/50. $6 MILLION PROJECT AND PRIVATE SECTOR GENERATES THREE. BEFORE ANYBODY STARTS COLLECTING MONEY, WE WILL HAVE AN AGREEMENT THE CITY IS COMMITING THREE.

IF YOU ARE ABLE TO GENERATE BY SUCH AND SUCH A DATE.

THERE IS -- RIGHT NOW I HAVE NOTHING ACTIONABLE ON THAT TO BRING TO YOU ALL. THEY HAVE MENTIONED THE PICKLEBALL COURTS. AND THE REASON WHY THEY ARE MOVING FORWARD NOW IS BECAUSE THEY SEE US MAKING INVESTMENTS.

AND THEY WANT TO MAKE SURE THAT THE -- THE TENNIS FOLKS WANT TO MAKE SURE THEIR NEEDS GET ADDRESSED IN ADDITION TO THE

PICKLEBALL PLAYERS. >> PIPE POE THEM K58, THE $3 MILLION WILL BE IN ADDITION TO THE $1.5 MILLION.

>> WITH THESE -- I AM NOT TRYING TO STAY GOOD OR BAD, BUT AN ADDITIONAL BIG CHUNK THAT THE COUNCIL WAS GOING TO FACE.

WE BUDGETED 1.5. BUT REALISTICALLY, AN ADDITIONAL

$1, $2, $3 MILLION ON TOP. >>ROBERT HANNA: YEAH, IF YOU DECIDE TO ADD AN AGREEMENT TO THE TENNIS COURTS WILL BE IN ADDITION TO THE PICKLEBALL. THE PICKLEBALL KZ IS A

STAND-ALONE BUT RELATED. >> SAME THING WITH NELSON FLAT FIELDS WITH AYSA, WE ARE PUTTING IN $6 MILLION.

TOTAL COST ON THAT PROJECT AND THEN IN A SIMILAR VEIN WITH THE PICKLEBALL COURTS, IS THIS SOMETHING THAT WE PUT IN $6 MILLION NOW AND THREE MONTHS OR SIX MONTHS DOWN THE ROAD, WE ARE GOING TO HAVE ASK OF A $1 MILLION OR $3 MILLION.

>>ROBERT HANNA: WON'T BE $1 MILLION OR $ MILLION.

IT WILL BE HALF A MILLION A YEAR UNTIL THAT ENDOWMENT IS RESTORED FOR THAT ACCOUNT WITH AYSA. 37 THERE IS ABOUT -- I DON'T KNOW, ABOUT -- OFF THE TOP OF MY HEAD, ABOUT AT THAT $9 MILLION TO $11 MILLION PUBLIC IMPROVEMENT REQUIREMENT.

THE MAIN ROAD THAT COMES IN. WE ARE REALIGNING THE ROADS AND PARKS. COMPONENTS THAT AYA HAS THE CITY TAKE ON EXPANDED FROM THE ORIGINAL $5 MILLION REQUEST AND SO HAVE THEIR COSTS. WE ARE JUST TRYING TO BALANCE THE PROGRAM OUT. I TOLD AYSA THAT WE HAVE THE OPPORTUNITY TO FUND ANOTHER $1 MILLION IN CASH WHICH IS WHERE $6 MILLION COMES FROM. BUT WE DON'T HAVE THE CAPACITY TO UP-FRONT ANOTHER $4 MILLION TO $5 MILLION.

ANY WAY THEY CAN FUND THAT IN ADVANCE AND WE WOULD REPAY OVER TIME. SO THAT WOULD HAPPEN THROUGH A CHAPTER 380 AGREEMENT WITH THEM. HAND THIS WILL BE COMING TO YOU ALL FOR YOUR CONSIDERATION. IF COUNCIL SAYS NO, THEN AYSA WILL HAVE TO GO BACK TO THE DRAWING BOARD AND DEVELOPMENT MORE FUNDS OR HAVE TO REDUCE THE AMOUNT OF PUBLIC IMPROVEMENTS IN THE FACILITY. WE WON'T REALIGN THE ROADS OR SOLVE THE TRAFFIC CONGESTION. AND I THINK IT IS EVERYONE'S INTEREST TO DO THE PROJECT. AND I THINK WE FUNDS APPEAR WAY THAT WE CAN DO IT AND FUND IT. BUT IT DOES REQUIRE COUNCIL

ACTION. >> SO IN THAT SCENARIO, COUNCIL WILL GIVE THE $6 MILLION -- AGAIN, UNDER THAT SCENARIO, IT MAY CHANGE -- ON TOP OF THAT GIVING $5 MOU00,000 OVER THE NE

FOUR OR FIVE YEARS. >>ROBERT HANNA: DEPENDING ON THE NUMBERS THAT COME OUT, FIVE TO SEVEN.

>> FIVE TO SEVEN, THANK YOU. >>ROBERT HANNA: THIS IS THE MINOR IMPROVEMENT FUND FROM THE ACTUAL FUND SHEET OF.

YOU CAN SEE WE HAVE HOVERED AROUND THE FUND BALANCE OF $10 MILLION. THE FUND BALANCE IS LESS PROPOSED $7.5 UNTIL. FOR FY 2024 BECAUSE WE SPENT THAT DOWN. A LARGE PART OF THAT SUBSTANTIAL INCREASE REALLY WAS THE ARPA FUNDS.

AND WE WILL HAVE A SLIDE ON THAT IN JUST A SECOND.

THE ENDING FUND PAL 1.6. THAT ACTUAL $16 MILLION IS A LARGE, VAST MAJORITIES OF THAT IS ARPA MONEY AND WE SPENT THE DOLLARS ASSOCIATED FROM A PROGRAM STANDPOINT OVER THE

[01:05:04]

NOT AN ENDOWMENT. WE ARE SUPPOSED TO BE SPENDING THIS EVERY YEAR. THAT IS THE PLAN.

EAR MARKED UNDER THE GOVERNMENT'S PROGRAM OF $21 MILLION. SPENT THROUGH REVENUE LOSS WITHOUT ANY FURTHER WORK. AND THEN IMPACTS OF COVID.

WE ARE SUGGESTING GOING TO CLEAR ANOTHER $6.3 MILLION.

WE HAVE USED THE FUNDS. $10 MILLION FOR MINOR IMPROVEMENTS. $5 MILLION FOR THE DOWNTOWN HOTEL. $5 MILLION FOR FLAT FIELD PROGRAM. WALKING TRAIL IMPROVEMENTS THAT WE FINISHED THIS FISCAL YEAR CAME FROM THE ARPA FUNDS.

AND STILL $351,000 UNDESIGNATED. IF WE ARE ABLE TO COMPLETE OUR REVENUE LOSS CALCULATIONS FOR FY 2024, WE MAY BE ABLE TO WIPE THAT AND NOT GO THROUGH THE JUSTIFICATION REPORTING REQUIREMENTS THAT THE FEDS REQUIRE TO YOU DO.

WE HAVEN'T FINALIZED THE CALCULATIONS YET OR HAVE WE?

>> NO, WE HAVE NOT. >> ROBERT, JUST TO CLARIFY, THESE ARPA FUNDS ARE NOT FREE AND CLEAR.

WE CAN SPEND IT ON ANYTHING. SOME QUALIFICATIONS FOR THESE.

>> 100%. QUALIFICATIONS FOR IT.

ALL THE EXPENDITURES HAVE MET THE QUALIFICATIONS, BUT, YES, WE HAVE TO DOT IS AND CROSS TS. OTHER ITEMS OF INTEREST.

WE HAVE FLEET. VEHICLE EQUIPMENT REPLACEMENT AS FOLLOWS. $2 MILLION FOR GENERAL FUND.

$ MILLION FOR WATER AND SEWER FUND $667,000 FOR SOLID WASTE.

240,000 FOR WATER SERVICES. $4.4 BILLION TOTAL.

ALL PURCHASE ABOVE $50,000 WILL COME TO COUNCIL FOR APPROVAL AS THEY ALWAYS DO. WE HAVE A BACKLOG OF VEHICLE NEEDS BECAUSE WE HAVEN'T ABLE TO GET VEHICLES.

A BIG PROBLEM FOR US. WE HAVE SOME -- THE CODE COMPLIANCE, FOR EXAMPLE, THEY ARE DOUBLING UP BECAUSE THEY DON'T HAVE TRUCKS THAT ARE FUNCTIONING.

THEY ARE ON A PRIORITY LIST TO GET THOSE REPLACED, IF WE CAN'T BUY THE TRUCK, WE CAN'T BUY THE TRUCK.

I AM TALKING INTERNALLY WITH FOLKS HERE IN THE ORGANIZATION TO SEE IF THERE WAS NOT A WAY THAT WE CAN MOVE FASTER THROUGH THE PROCUREMENT CYCLE. IF WE IDENTIFY A TRUCK, LET'S BUY THE DARN THING. WE WON'T BE ABLE TO GET SOME OF THE FLEET PRICING, BUT FOR THOSE VEHICLES THAT -- THEY ARE REALLY AT END OF LIFE AND NOT FUNCTIONING ANYMORE AND A $500,000 NEW ENGINE OR VEHICLE. END OF LIFE, I WOULD LIKE TO BUY A NEW VEHICLE.

$5,000 ENGINE, END OF LIFE. I WANT TO SEE DOING THINGS DIFFERENT TO REPLACE THOSE VEHICLES.

HAND THIS STRATEGY WILL BE COMING BEFORE YOU.

IT IS NOT FULLY BAKED AT THE MOMENT.

BUT WE ARE WORK ON SOME THINGS. ANY QUESTIONS BEFORE I GET INTO INFILL? OKAY.

>>MAYOR HURT: TAKE A FIVE-MINUTE BREAK.

>>ROBERT HANNA: TAKE A FIVE-MINUTE BREAK.

>> >> IF COOL YOUR JETS BRINGS UP AN OPPORTUNITY TO MAKE A COMMENT ON TRAVIS'S GENERATIONAL COMMENT ABOUT PICKLEBALL IF WE WANT TO REVISIT THAT.

>> ARE WE NOT EXTENDING GRACE? >> OF COURSE WE ARE.

>> I LOVE YOU TOO TOO. >> I HAVE ANOTHER QUESTION WITH REGARDS TO THE FLAT FIELD DISCUSSION.

>>ROBERT HANNA: YES, SIR. >> YOU LOOK AT THE ARPA SLIDE.

WE GO BACK TO THE ARPA SLIDE. THE $5 MILLION ALLOCATED -- TO THE FLAT FIELDS IS ARPA FUNDS, NOT GENERAL FUND DOLLARS, IS

THAT CORRECT? >>ROBERT HANNA: THAT'S CORRECT,

SIR. >> ONLY ADDING A MILLION OUT OF THE MIP OUT OF THE FEDERAL FUND FOR THAT PROJECT.

>>ROBERT HANNA: THAT'S CORRECT. >> YOU HAVE TO SPEND ITEMS FROM

ARPA FUNDS ON THAT? >>ROBERT HANNA: WHY HE IS.

WHEN WE DO THE LOSS REVENUE ANALYSIS MAY CLEAR OM OF THE FUNDS AND WON'T HAVE ADDITIONAL FUND REQUIREMENTS.

IF WE DO, GO THROUGH I DOTTING AND T CROSSING TO MAKE SURE THAT THE FEDS AGREE WITH US. WE HAVE EXAMPLING WHERE IT IS USED BY OTHER PROJECTS IN THE PAST, BUT HOOPS YOU HAVE TO JUMP

THROUGH WITH FEDERAL DOLLARS. >> I HAVE A KQUESTION.

[01:10:03]

>>ROBERT HANNA: YES, SIR. >> THE TIME IT EXPIRES.

WHAT IS THE LAST TIME YOU USE THE ARPA FUNDS.

AND ARE WE CONCERNED OF THE TIMELINE?

>>ROBERT HANNA: WE ARE NOT CONCERNED -- I AM NOT CONCERNED.

WE WILL HIT THE REQUIREMENT OFF THE TOP OF MY HEAD, '26?

IT IS 2026. >> A FUND BALANCE FROM ARPA

AFTER THESE EXECUTIVEXPENDITURE? >>ROBERT HANNA: NO, SIR.

THAT WILL BE IT. OKAY, THE $1 MILLION YOU SET ASIDE IN GENERAL FUND, WE CALL THIS PROGRAM "REBUILD ABI." A CONCERTED EFFORT ON THE CITY TO ENCOURAGE RESIDENTIAL DEVELOPMENT AND REDEVELOPMENT IN COUNCIL ESTABLISHED INFILL TARGET AREAS. RIGHT NOW OF THE INVOLVED PARTIES INCLUDE THE CITY OF ABILENE, FIRST FINANCIAL BANK, PROSPERITY BANK AND THE BIG COUNTRY HOME BUILDERS ASSOCIATION. I WILL SAY THIS IS AN EVOLVING PROGRAM AND THE INFORMATION YOU HAVE ON THESE SLIDES, I AM STILL IN DISCUSSIONS WITH THE LENDING PARTNERS.

FIRST NATIONAL AND PROSPERITY BANK AND THERE WILL BE TWEAKS TO THE PROGRAM. THIS IS WHERE WE ARE TODAY.

THEY ARE SUBSTANTIALLY CORRECT AND THEY MAY TRY TO LIMIT SOME THINGS AND WHEN WE GET TO THAT AREA, WE WILL GET TO THAT SLIDE.

WHY IS THE REBUILD ABI NEEDED. AFOR THEABILITY AND HOUSING IS IN DEMAND. ABI.

WE DON'T HAVE ENOUGH HOUSING UNITS.

NOT JUST OUR PROBLEM ESPECIALLY IN THE STATE OF TEXAS.

ONE OF THE COST DRIVERS OF ANY NEW HOME DEVELOPMENT IS LAND DEVELOPMENT AND UTILITY STRUCTURE COST ASSOCIATED WITH IT. WHERE HE BUILD ABI HAVE INCENTIVES TO HOME MRRS AND ENTREPRENEURS TO REHAB OR REBUILD HOUSES ON LOTS THAT ALREADY ARE UTILITY STRUCTURE.

ALREADY STREETS, WATER AND SEWER AND MAY NOT BE SIDEWALKS DEPENDING ON WHEN THE NEIGHBORHOOD WAS BUILT AND IF THEY HAD SIDEWALKS AT THAT TIME. LARGE COST DRIVERS FOR HOUSING.

SO THE COUNCIL DESIGNATED TARGET AREAS, OFFICIALS ONCE CARVER AND SEARS NEIGHBORHOOD. AND YOU WILL SEE THAT MAP.

THAT IS THE OUTLINE OF THE NEIGHBORHOOD EMPOWERMENT ZONE, ZONE ONE AND TWO AND THE OFFICIAL DESIGNATED TARGETED AREA. ADDITIONALLY, THE CITY WILL IMPROVE RESIDENTIAL COMMUNITIES NORTH OF SOUTH 27 UNDER THESE PARAMETERS. THE IMPROVEMENTS ARE FOR SINGLE-FAMILY RESIDENTIAL STRUCTURES.

SUBDIVISION COMPLETE FOR 20 YEARS OR FOR AND FOR SINGLE-FAMILY HOMESTEADED OWNERSHIP.

THE INTENT OF THE PROGRAM IS NOT TO HELP LANDLORDS TO BECOME WEALTHY. THE INTENT IS TO PROVIDE AFFORDABLE HOUSING OPPORTUNITIES FOR OUR COMMUNITY.

AND DOING IT IN A VERY REAL AND IMPACTFUL WAY OF REDUCING THE COST OF CONSTRUCTION FOR THE BUILDER.

NOT THAT THEY HAVE MAKE MORE MONEY, BUT BECAUSE THEY CAN SELL THE PRODUCT AT AN AFFORDABLE COST.

SO WHAT INCENTIVES ARE WE PREPARED TO OFFER IN THIS PROGRAM? REBUILD ABI OFFERS THE FOLLOWING INCENTIVES. 10% OF EQUITY FOR INTERIM -- INTERIM FINANCING COST. SO IF IT IS $100,000 CANOE BUILT CONSTRUCTION. IT WON'T BE.

USING ROUND NUMBERS FOR EASY MAP.

PRESIDENT CITY WILL CONTRIBUTE $10,000 AT THE TIME OF INT INTERIMTHET CITY WILL CONTRIBUT AT THE TIME HE CITY WILL CONTRI0 AT THE TIME OF INTERIMT. THE CITY WILL HAVE A LIEN.

IF THEY BUILD OR HALFWAY BUILD, PROTECTION ON A STANDPOINT.

OR 10% OF SALES PRICE TO BE PAID TO THE HOME BUILDERS AT FINAL CLOSING. LET'S SAY THAT THE BUILDER DIDN'T NEED TO BORROW THE FUNDS. THEY ARE CASH FINANCING THEIR OWN IMPROVEMENTS. THEN WE WOULD CONTRIBUTE 10% OF THE SALE PRICE TO THE HOMEBUILDER AT FINAL CLOSING.

WAIVER OF CITY DEVELOPMENT RELATED GUYS, ZONING GUYS AND PLATTED GUYS, WATER AND SEWER TAP GUYS.

CITY WILL PROVIDE ROLLOFF CONTAIN WE ARE TWO FREE TIPS AND SIDEWALKS AS REQUIRED. IF THERE ARE EXISTING SIDEWALKS OR SIDEWALK DEVELOPMENT ON ONE SIDE, WE WILL EXTEND THE SIDEWALK AT OUR COST. CITY CAN PROVIDE UTILITY TAPS, FREE OF CHARGE, IF NEEDED. FAVORABLE FINANCING BY PARTNER BANKS. SO WHAT DOES THAT LOOK LIKE? RIGHT NOW, WE TALKED TO FIRST FINANCIAL AND PROSPERITY.

WE ARE NOT EXCLUSIVE. WE COULD HAVE OTHER OPPORTUNITIES AS WELL. 12-MINUTE INTERIM FINANCING WITH INTEREST QUARTERLY ALONG THE BALANCE OF INTEREST AND PRINCIPAL DUE AT MATURITY. IF THE PRODUCT DOESN'T SELL IN THE FIRST 12 MONTHS, THE LENDERS HAVE AGREED TO EXTEND AN

[01:15:02]

A FIXED INTEREST RATES. THE "WALL STREET JOURNAL" AND RIGHT NOW 8.5. WHICH IS -- IF YOU WENT OUT TO GET A NOTE -- DEPENDING ON YOUR CREDIT, PAY 7.5 TO 8.25 FOR A HOME LOAN. NOT POOR FINANCING, JUST -- IT IS A PRETTY COMPETITIVE RATE. 90% LOAN TO VALUE WITH THE CITY AVAILABLE 10% EQUITY GRANT IF NEEDED BY THE HOMEBUILDER.

HOW WOULD ONE PARTICIPATE IN THIS PROGRAM? SHOOTING A TARGET DATE OF OCTOBER 1.

AGAIN, THAT IS OUR TARGET. INTERESTED PARTIES WILL BE ABLE TO SUBMIT AN APPLICATION TO CITY OF ABILENE TO APPLY FOR THE PROGRAM. THE APPLICATION WILL ALLOW THE CITY TO REVIEW WHAT THE BUILDER INTENDS TO BUILD.

WE ARE INTERESTED IN QUALITY PRODUCT.

WE ARE NOT INTERESTED IN. IT'S TO THE TO MEET CERTAIN STANDARDS AND THE BUILDING CODE REQUIREMENT AND MEET THE REQUIREMENTS TO GET FEDERAL -- FEDERAL MORTGAGE LOANS.

THERE WILL BE STANDARDS THAT MUST BE MET.

AND WE ARE GOING TO MAKE SURE THAT THEY ARE COMPLIANT WITH THAT PROGRAM. AND THE BANKS WILL TOO.

PART OF THE APPLICATION PROCESS WRAUKING WITH THE BANKS IF THEY USE THEIR FINANCING TO MAKE SURE THAT THE LENDER IS FEELING COMFORTABLE WITH THE APPLICANT. THEY HAVE TO MEET CERTAIN REQUIREMENTS. ONCE APPROVED, APPLICANTS CAN BEGIN CONSTRUCTION. I WANT TO AVOID INTENTIONALLY AND I WANT TO SAY THIS CLEARLY. YOU CAN'T GO WHERE FIVE HOMES AND COME BACK AND SAY WHERE IS MY MONEY.

YOU HAVE TO BE APPROVED TO BE PART OF THE PROGRAM.

PART OF THAT AS WE EAR MARK THE $1 MILLION.

WE MARK IT AS WE GO ALONG SO WE DON'T OVERSPEND THE GRANT.

MAKES SENSE TO EVERYBODY. WHAT MAKES IT COMPLIANT WITH THE PROGRAM? THE FIRST ITEM IS DISCUSSED BY THE BANKS. PART OF TRYING TO DETERMINE WHAT "AFFORDABLE" IS, THERE ARE MULTIPLE WAYS OF DOING THAT.

IF YOU LOOK AT 0% OF -- OF HOME INCOME, THE ABILITY TO BUY $183,000 HOUSE IS -- YOU WON'T BE ABLE TO HIT THAT NUMBER, RIGHT. DEPENDING ON THE NUMBER OF PEOPLE IN THE HOUSE. SO WHAT I AM TRYING TO DO IS BEING SOMETHING LET'S THAN MARKET BUT REALISTIC.

HOME BUILDERS CAN'T MR. HOMES FOR UNDER $125,000.

THEY CAN'T -- THEY CAN'T. THE COST OF CONSTRUCTION IS PROHIBITED .WE ARE TRYING TO OFFSET THAT COST ENOUGH TO BE ABLE FOR THEM TO MAKE THE PRODUCTS THEY NEED TO MAKE TO BE IN BUSINESS AND OFFER THE HOUSE AT A PRICE MORE AFFORDABLE THAN THE MARKET CURRENTLY GENERATES. RIGHT NOW THE MEDIAN SALES PRICE BASED ON 2022 REAL ESTATE INFORMATION, THE MEDIAN SALE PRICE AS REPORTED BY THE TEXAS A&M FOR ABILENE, TEXAS WHERE, WAS $223,000. SO 80% OF THAT WHICH IS A NUMBER I SET IT TOO IS $183,000. BANK HAVE QUESTIONS ON THAT.

SO THAT NUMBER MAY CHANGE. THE CONCEPT IS, IF WE ARE BUILDING $ 50,000 HOMES, WE HAVE REALLY PRICED OUT ALARM PORTION OF ABILENE. NOT THAT THOSE -- THAT IS PRETTY WHERE A STARTER HOME IS THESE DAYS, $225,000 TO $250,000.

TRYING TO BUILD UNDER THAT IS AT VALUE PROPOSITION OF WHY THE PUBLIC IS INVOLVED. THE HOME HAS TO BE LOCATED IN THE TARGET AREA OR ALTERNATIVELY BY THE CITY.

BUILDING MATERIALS FOR THE HOME'S PURCHASE HAS TO BE PURCHASED FROM THE BUSINESS OF CITY OF ABILENE.

WE WANT TO COLLECT THE SALES TAX.

THAT WILL HELP REDUCE OUR COST OF THE PROGRAM OVERTIME.

THEN THEY HAVE TO COMPLY WITH THE OTHER MINIMUM HOME STANDARDS SET FORTH IN THE APPLICATION. SO BROUGHT TO MY ATTENTION, WHAT I WANT TO REMODEL SOMETHING AND BUY A HOUSE IN THE TARGET AREA AND I TAKE IT DOWN TO THE STUDS, WHATEVER.

A COUPLE OF THINGS. WHAT WE DON'T WANT TO BE HAVE THIS A CHEAP FLIP OPERATION PEOPLE ARE TAKING ADVANTAGE OF PUBLIC MONEY -- HAS TO BE MEANINGFUL IMPROVEMENTS IF YOU ARE GOING TO DO REHABS. THE MILD IS 50% OF APPRAISED VALUE WHICH IS GREATER. HAS TO BE LOCATED IN THE TARGET AREA AND INTENDED FOR HOMESTEADING.

YOU HAVE TO REPLACE ALL THE MAJOR SYSTEMS UNLESS OTHERWISE ACCEPTED. ROOF, MECHANICAL, PLUMBING, ELECTRICAL SYSTEMS. THEY HAVE TO BE REPLACED.

IF WE HAVE A PUBLIC INVESTMENT, WE NEED TO MAKE SURE THAT PRODUCT WILL LAST NUMBER OF YEARS.

WHAT WOULD THE EXCEPTION OR IF THE ROOF WAS REPLACED TWO YEARS AGO, WE PROBABLY WOULDN'T NEED TO REPLACE IT DEPENDING ON

[01:20:04]

IN ORDER TO PASS CURRENT STANDARDS, YOU HAVE TO INSULATE THAT HOUSE FAR MORE THAN IT IS RIGHT NOW.

THE PART OF HAVING AN AFFORDABLE HOUSE IS HAVING AN AFFORDABLY MAIN STAINED HOUSE OVER TIME. SO ONE OF THE THOSE REQUIREMENTS TAT I WOULD LIKE TO AS PART OF THE APPLICATION PROCESS DO YOU PASS A RES CHECK. A ENERGY CHECK.

A STANDARD CHECK WE USE AS PART OF A CODE.

THE TRADES KNOW WHAT IT IS AND KNOW HOW TO BE COMPLIANT TO IT.

BUT YOU WILL HAVE INSULATED STRUCTURES.

WINDOWS MAY OR MAY NOT BE REPLACED.

YOU PUT INSULATION IN THE ATTIC. 24 THINGS WE WILL WANT TO LIVE IN TO MAKE SURE OUR ENERGY BILLS ARE AFFORDABLE OVER TIME. DOES THAT MAKE SENSE? THAT IS THE END OF THAT SECTION. DO YOU HAVE ANY COMMENTS?

>>MAYOR HURT: ROBERT, I WANT TO SAY FIRST OF ALL THANK YOU FOR ALL YOU HAVE DONE ON THIS. COUNCIL PRIORITIES.

INFILL IS NUMBER ONE. WE TALKED ABOUT IT FOR A LONG TIME AND SOME OF US ON THE COUNCIL WENT TO OTHER CITIES AND HOOKED AT PROGRAMS. WE KIND OF SIT ON THIS.

I AM EXTREMELY EXCITED THAT WE HAVE SOMETHING TO ACT WITH NOW THAT WE CAN MOVE FORWARD WITH. ALSO WANT -- ONE OF THE PARTNERS IS THE IS THE CITY OF ABILENE AND WE HAVE YOUR BOARD.

OUR BOARDS WORKING TOGETHER AND CODE COMPLIANCE.

I WANT CODE COMPLIANCE TO KNOW THAT THE COUNCIL IS BEHIND THEM.

BECAUSE THIS PART OF WHAT MAKES THIS WORK IS CODE COMPLIANCE.

THOSE GUYS HAVE A HARD JOB. I UNDERSTAND, BUT WE NEED TO GIVE THEM A LITTLE TEETH AND WE NEED TO STAND BEHIND THEIR DECISIONS AND GIVE THEM THE AUTHORITY THEY NEED TO DO TO

CLEAN THINGS UP. >>MAYOR HURT: ANYBODY ELSE?

>> I HAVE SEVERAL QUESTIONS, ROBERT.

THE CITY IS NOT AT RISK FOR THE LOAN.

THE HOMEBUILDER IS, CORRECT? >>ROBERT HANNA: YES, SIR.

>> SO WILL ENGAGE IN -- I ASSUME IT IS CODE COMPLIANCE, BUT I AM CURIOUS YOU WHO WILL EN GABLE IN THE OVERSIGHT TO MAKE SURE THAT

THEY LIVE UP TO STANDARD. >>ROBERT HANNA: ALL CODE REQUIREMENTS. THE BUILDING AND INSPECTION

DEPARTMENT WILL DO THEIR JOB. >> OKAY, THE 80% COMPLIANCE THRESHOLD HOW WILL THAT SHIFT WITH THE MARKET? WHAT INTERVAL WILL WE CHANGE. AS THE MARKET SHIFTS, 80%.

AT WHAT THRESHOLD WILL BE PRESENT THE 80% THRESHOLD.

>> THE RESEARCH CENTER EVERY YEAR THEY ARE PUBLISHING MEDIAN SALE PRICES FOR THAT PARTICULAR AREA.

2023 NUMBERS HAVEN'T COME OUT BECAUSE WE ARE STILL IN 2023.

BUT WHEN THAT RESETS, I WOULD ANTICIPATE THAT NUMBER RESETTING AS WELL. THE BANKS HAVE SOME CONCERN THAT NUMBER MAY BE TOO LOW I HAD NOT HAVE A CONVERSATION OR OUR BUILDING COMMUNITY. IF THEY SAY THIS IS THE MAX PRICE AND NOBODY CAN MAKE A DOLLAR OFF OF IT, IT WILL NOT WORK. BUT WE MET WITH THE BUILDER ASSOCIATION AND TALKED ABOUT THIS PROGRAM.

WE TALKED ABOUT A RANGE OF $150,000 TO $200,000.

AND THEY THOUGHT THAT WAS DOABLE WHICH IS THAT NUMBER IS SQUARELY IN THE MIDDLE OF THAT. IN FACT, I THINK IT IS RIGHT IN THE MIDDLE. SO MY HOPE IS THAT WE ARE GOING TO BE ABLE TO -- THAT WILL BE A NUMBER THAT EVERYBODY THINKS THEY CAN DO. LCH HAVE TO HAVE MORE DISCUSSIONS ON THAT WHICH IS WHY THAT MIGHT GO UP A LITTLE BIT.

DOES THAT ANSWER YOUR QUESTION, SIR?

>> YES. LASTLY, I WANT TO MAKE SURE WE DO A THOROUGH JOB OF TRACKING DATA ON THIS FOR THE ROI FOR THE PROPERTY TAX PERSPECTIVE. WHAT HOUSES HAVE BEEN DONE.

WHAT THE MEDIAN INCREASE OR WHAT THE INCREASE OF VALUE WAS, WHAT THAT TRANSLATES TOO INTO PROPERTY TAX RETURN OVER WHAT IT WAS BEFORE AND THOSE KIND OF METRICS.

SO WE CAN MEASURE THE ROI PROGRAM.

>> THIS IS WHY WE WANT TO HAVE A APPLICATION PROCESS SO WE KNOW EXACTLY WHERE IT IS BEING BUILT AND WE CAN HAVE A BASE AND MOVE

FORWARD. >> I WOULD LIKE TO POINT OUT THE

[01:25:02]

AND THING IS A GOOD-FAITH EFFORT TO ALLOW THE PEOPLE WHO HAVE MADE UP THAT NEIGHBORHOOD, WHO ARE PART OF THE FABRIC OF THAT PART OF TOWN TO STAY THERE AND HAVE A QUALITY PLACE TO LIVE AT AN AFFORDABLE PRICE. I THINK IT IS APPROPRIATE FOR THE CITY. FOR THE TAXPAYERS IN THE CITY TO USE TAXPAYER MONEY TO INCENTIVIZE PRIVATE DEVELOPMENT ALONG THESE LINES WITH RESTRICTIONS.

IT WILL CREATE THAT DOUGHNUT OF A LACK OF INVESTMENT IN THE CENTRAL PART AND FOCUS ON THE CHEAPER AND UNDEVELOPED LAND AROUND THE EDGES. WE WILL BE OUT OF THAT PRETTY QUICK AND IT WILL PROBABLY, EVENTUALLY GET DONE, BUT YOU DON'T WANT TO GET TO THE POINT WHERE IT IS SO DECAYED THAT THE PRICES MAKE THAT ECONOMICALLY FEASIBLE.

I THINK WE BENEFIT FROM A HOME OWNERSHIP PERSPECTIVE.

WE ARE TALKING SINGLE-FAMILY, HOMESTEAD, ELIGIBLE 40E78S WITH -- ELIGIBLE HOMES WITH PEOPLE WHO LIVE IN THEM AND HAVE A PRIDE OF OWNERSHIP. YOU ARE REVITALIZING NEIGHBORHOODS. THIS IS NOT FOR LANDLORDS TO GO IN AND FLIP A HOUSE AND MAKE A BUCK.

THE WAY THE PROGRAM IS STRUCTURED DOES NOT INCENTIVIZE THAT. IT MAKES IT A BUILDER WHO CAN MAKE A WHOLE LOT MORE WITH A CREW ON A MORE EXPENSIVE HOUSE, WHERE THEY MIGHT BE WILLING TO PARTICIPATE IN THIS AND ACHIEVE THE DESIRED EFFECT. THING IS BRILLIANT AND ALONG THE LINES WHAT THE MAYOR HAS POINTED OUT AS INFILL DEVELOPMENT.

NEIGHBORHOODS NEED HELP HAND THIS IS A GOOD THING.

>> I WANT TO ECHO THE MAYOR'S THOUGHTS ON THIS.

I AM EXCITED ABOUT THIS PROGRAM. IT IS DEFINITELY NEEDED.

I WANT TO MAKE SURE THAT WE DO IT RIGHT.

I AM NOT SAYING THAT THERE WON'T BE A SECOND OPPORTUNITY FOR TWEAK THIS AS WE GO. BUT AN IMPORTANT PROGRAM WITH PRETTY FAR-REACHING CONSEQUENCES.

HOPEFULLY IN A GOOD WAY. FEEDBACK FROM THE BUILDERS.

WHAT HAS THAT BEEN? BECAUSE THIS PROGRAM REAL -- THEY ARE THE CUSTOMER. THE HOUSE WOULD ARE OPINION BUILT IF THE DEMAND WAS THERE IN THE MARKET.

WE ARE SUPPLEMENTING THAT. BUILDERS, YOU CAN BUILD FAR SOUTH OF THE CITY LIMIT AND MAKE MORE OF A PROFIT, THE BUILDERS WILL GO WHERE THE MONEY IS AT, THE PROFIT IS AT.

WE SAY, HEY, HE UNDERSTAND THAT CURRENT CONDITIONS ARE NOT THERE, BUILDERS. YOU ARE OUR CUSTOMERS.

WE WILL HELP MAKE THE PROFIT MAKE SENSE HERE BY SUPPLEMENTING, BUILDING. HELPING WITH THE INFRASTRUCTURE, ETC. MY CONCERN IS WHAT HAS BEEN THE BUILDER FEEDBACK ON THIS AND HOW INVOLVED HAVE THEY BEEN.

BECAUSE WE CAN DESIGN A BEAUTIFUL PROGRAM BUT IF IT DOESN'T ENTICE BUILDERS ON THE SCALE THAT WE NEED, THIS IS KIND OF ALL FOR NOTHING. WHAT HAS BEEN THE BUILDER

FEEDBACK? >>ROBERT HANNA: WE MET WITH THE PRESIDENT OF THE BIG COUNTRY HOME ASSOCIATION AND WITH TWO OR THREE MEMBERS OF THE BOARD AND HAD DINNER WITH THEM AND UNVEILED PORTIONS OF THIS PROGRAM SPECIFICALLY TO GET THEIR FEEDBACK. AND IT HAS BEEN VERY POSITIVE.

IN FACT -- I WON'T SPEAK FOR MAYOR HURT.

WHEN ARE WE STARTING THIS. HE HAS PEOPLE ASKING HIM.

WHEN ARE YOU READY TO START THIS.

I AM READY TO GO. ANOTHER BUILDER IN TOWN, NEW HOMES CONSTRUCTORS, LCC WHO DID PROJECTS UNDER ANOTHER NAME WHICH WILL COME TO YOU ALL THIS THURSDAY -- YEAH, THIS THURSDAY.

FOR APPROVAL, BUT -- SO I KNOW IT IS POSSIBLE IT CAN WORK.

THE SALE PRICES ARE AROUND 198 TO 200,000.

SO, AGAIN, WE HAVE TO HAVE INCENTIVES TO BRIDGE THE GAP TO

[01:30:03]

I THINK WE HAVE GOTTEN GOOD FEEDBACK.

>> THEY WERE INVOLVED SINCE THE BEGINNING, TOWARD THE END, HAVE THE BUILDERS SEEN THIS AS IS AND SAYS THESE SPECIFICS ARE WHAT IS AT NEED. AND THEY WERE DISCUSSED AT HE

BEGINNING. >>ROBERT HANNA: THEY HAVE NOT SEEN THE SLIDES AND THEY HAVE SEEN THE CARROTS PETITION PUT OUT THERE AND THEY HAVE DONE THEIR WORK.

I NEED TO GO BACK 183 TARGET NUMBER, WE NEED TO HAVE CONVERSATIONS TO MAKE SURE WE DON'T HAVE A PRICE TOO LOW IN CURRENT MARKET CONDITIONS TO MR. OF A PRODUCT AND MAKE THE TURNS

ON A BUSINESS STANDPOINT. >> ON THE CALCULATION FOR THE 80% OF THE MEDIUM PRICE. I AM NOT SAYING WRONG OR RIGHT.

>> I WAS TRYING TO FIND NUMBERS. AND WHAT OUR MEDIUM VALUE IS RIGHT NOW WITH INTEREST RATES THE WAY IT IS TODAY, 7% ON $200,000. PUTS A LOT OF PEOPLE OUT OF MARKET. AND -- AND -- IN FAIRNESS TO THE BANKS, THAT IS HISTORICALLY A LOW RATE, IT IS JUST NOT SOMETHING WE HAVE SEEN IN A WHILE, RIGHT TRYING TO GET A NUMBER THAT I THOUGHT WE COULD GET A PAVEMENT OFF OF BASED ON AVERAGE INCOME IN ABILENE TEXAS WITH A COUPLE OF KIDS.

THAT IS HOW I CAME TO THAT NUMBER IS IT PERFECT, ABSOLUTELY NOT. 90%.

50%? IT COULD BE WHAT WE WANT TO.

AND BRING RECOMMENDATION TO THE TABLE AND THAT'S WHAT I CHOSE.

>> FINALLY ON A PRACTICAL LEVEL, WHO IS GOING FOR INVOLVED IN THIS? IS THIS SOMEONE WHO HAS A HOUSE IN THE DESIGNATED AREA AND SAYING, HEY, MY HOUSE IS WORTH $30,000 NOW. I WANT IT -- DEMOLISHED UNDER OUR DEMOLITION PROGRAM, THEY DEMOLISH IS IT AND HAVE -- BUILDERS OF SUBDIVISION WHO ON THE PRACTICAL LEVEL WILL TAKE

ADVANTAGE OF THIS PROGRAM. >>ROBERT HANNA: ALL OF THE ABOVE. WE ARE NOT EXCLUSIVE.

THE ONLY EXCLUSION IS MEMBERS OF THE BIG COUNTRY HOMEOWNER ASSOCIATION. NOT INEND IT FOR BUILDERS OF FORTH TO COME IN AND FLIP A BUNCH OF HOMES.

IT IS INTENDED TO HELP OUR LOCAL BUSINESSES AND LOCAL HOME BUILDERS. OUR HOME SALES ARE DOWN A LITTLE BIT. NOT SURPRISING GIVEN INTEREST RATES AND ECONOMIC INVESTMENT PROGRAM FOR IT AS WELL.

>> POTENTIALLY. WE ARE SETTING ASIDE A MILLION.

BALLPARK, HOW MANY HOUSES CAN YOU BUILD.

>>ROBERT HANNA: YOU GET -- WELL, IF THE PILOT PROGRAM WORKS.

I THINK RIGHT NOW WE COULD GET A SUBSTANTIAL AMOUNT OF HOMES BUILT. 10% OF THE PRICE WHICH WILL FLUCTUATE BACK AND FORTH, BUT I THINK --

>> 50 TO 60? >>ROBERT HANNA: 50 TO 60 WOULD BE GREAT. WE WOULD GET MORE IF THEIR PRICES ARE LESS. LESS IF THE PRICES ARE MORE.

IT WILL BE DEPENDENT UPON THAT. A PILOT PROGRAM.

IF IT WORKS, YOU CAN FUND IT AGAIN NEXT YEAR.

I DON'T KNOW WHAT ELSE I CAN DO. >> HOMEOWNERS WANT TO BE INVOLVED WITH THE REINVESTMENT IN THE CITY AND THEY WANT TO HELP AND BE PART OF THIS. WITH THE 10%.

WE SIT BETWEEN 115 A200. THEY SAY THEY CAN MAKE THAT

WORK. >> THE MIAMI STEAD 3R506.

THAT IS TO LIMIT THE FLIPPING. IS THAT --

>>ROBERT HANNA: HOW WE CONTROL THAT? OKAY, THIS IS THE WEAK LINK IN THE WHOLE PROGRAM, RIGHT.

THE CONCEPT THEY HAVE TO SIGN AN AFFIDAVIT IN THE DAY OF CLOSING

[01:35:01]

PUT A HOMESTEAD. COULD THEY CHANGE THEIR MIND, YES. COULD THEY FLIP IT, THEY COULD.

A CLAW-BACK MECHANISM TO GO BACK AND GET IT? NO, WE DON'T. WE HAVE TO RELY THE FACT IF PEOPLE WILL PUT THEIR NAME ON A PIECE OF PAPER SAYING THIS IS WHAT WE ARE GOING TO DO, A LEVEL OF RESPECT FOR THAT SIGNATURE AND THEIR COMMITMENT AND THAT MAY BE SOMETHING.

FOR LETTING PEOPLE WHO ARE LYING.

>> THIS PROGRAM IS USED IN SOME OTHER CITY, CORRECT?

>>ROBERT HANNA: NOTHING LIKE THIS I HAVE DONE BEFORE.

I HAVE DONE COMPONENTS OF IT. REACHED OUT TO PROGRAM IN DENIZEN, A NUMBER OF COMPONENTS THAT WERE SIMILAR TO THIS.

BUT TAKING REVENUE AND APPLYING IT TOWARD THE EQUITY PRICE OF THE HOUSE. WE HAVE NOT AND HAVE TO THE DONE THAT BEFORE. THIS IS NEW.

BUT DISCUSSING IT WITH THE BANKS IN IS WHERE THEY WERE COMFORTABLE IN THE FINANCING THEY ARE TALKING OF OFFERING FOR HOMES, NEW CONSTRUCTION. THEY WOULDN'T NORMALLY LOOK AT THIS FOR REMODELING AT THIS POINT IN TIME.

THEY WILL WANT TO DIP THEIR TOES IN THE LAKE BEFORE THEY JUMP IN.

BENEFITS THEM BECAUSE OF COMMUNITY PARTNERSHIPS HAND THIS WILL BE ELIGIBLE FOR THAT. THEY SEE THE VALUE IN IT AND IT WHAT COUNCILMEMBER GATES. THEY SEE THAT AND WRITE LOANS AND THEY KNOW WHERE THE LOANS ARE GOING.

THEY ARE NOT GOING IN THE CORE OF OUR COMMUNITY.

>> WAS THERE A MECHANISM IN DENIZEN TO PREVENT THE

FLIPPING? >>ROBERT HANNA: SAME CONCEPT.

IT IS ON THE AFFIDAVIT. THEY PREDOMINANTLY MAINTAINED SINGLE-FAMILY HOME OCCUPANCY WITH HOMESTEADING.

SOME HAVE -- SOME HAVE FLIPPED. I WOULD BE LYING TO SAY NONE OF THEM HAVE GONE TO RENTALS, BUT A MAJORITY OF THEM ARE OCCUPIED BY HOMES HOMESTEADERS.

>> THERE AN ORDINANCE OR CIVIL RECOURSE?

>>ROBERT HANNA: NO. WE CAN TALK TO STANLEY ABOUT THAT, BUTTING HE IS PREPARED TO TALK ABOUT THAT TODAY.

>>STANLEY SMITH: WE CAN DENY PARTICIPATION IF SOMETHING DID THAT. THEY COULDN'T PARTICIPATE AGAIN.

>>ROBERT HANNA: 100%. >> THEY MAY HAVE A SHORT-TERM GAIN BUT IN THE LONG RUN IT WILL HURT THEM.

IF THEY DO IT WRONG ONE TIME. OKAY, FINE.

YOU FOOLED US THIS TIME, BUT NOT AGAIN.

>>ROBERT HANNA: WE ARE NOT GOING -- WE ARE NOT CHUMPS, RIGHT.

WE WILL NOT LET THE SYSTEM BE GAMED.

>> AND THEN SO WE -- WE ARE ASKING THE BUILDER TO BUILD A $18 ,000 HOUSE POTENTIAL $183,000 HOUSE NEXT TO $250,000 TO $300,000 HOUSE. THE APPRAISAL SIDE -- THIS TRAIN IS DRIVEN BY APPRAISALS. A CONCERN FOR THE REARE THE BANKS AND BUILDERS. I CAN SEE INITIALLY THE FIRST FIVE, TEN, TWENTY BEING AN ISSUE BECAUSE YOU ARE SAYING I NEED THIS HOUSE THAT I AM GOING TO BUILD APPRAISED FOR $183,000.

AND THE BANKS SAY WE DON'T HAVE COMPS.

ALL THE COMPS ON $40,000. FOR ALL THE HOUSES IN YOUR NEIGHBORHOOD NOT APPRAISE THE NEW BUILD AT $183,000 AND THE MR. IS UNABLE TO COME IN BECAUSE THE GATEKEEPER HOW ARE YOU WE ADDRESSING ISSUE. TAKING OPTIMISTICALLY 123,000 AND PUT IT NEXT TO A 30, 40, 50, 60,000 DOLLAR HOUSE.

>> WE CAN'T CHANGE THE FEDERAL MARKETS WITH AN ORDINANCE.

WE DO NOT HAVE THE POWER OR AUTHORITY TO DO THAT.

I WILL TELL YOU NEW HOME CONSTRUCTORS HAVE BEEN ABLE TO DO THAT. GET PEOPLE TO BUY THEIR HOMES WITH LOANS AND THEY ARE DOING EXACT EXACTLY WHAT THE PROGRAM IS ENVISIONS. IN DENIZEN WE HAD SIMILAR CONCERNS. A HOUSE THAT MAY NEED TO BE D[L]EMOLLISHED VALUED AT $30,000 IS NOT COMPARABLE TO THE HOUSE THAT JUST GOT BUILT. WILL THEY HAVE TO STEVEN THROUGHOUT THE CITY TO FIND A COMPARABLE HOME? ABSOLUTELY THEY WILL. BUT I THINK OUR APPRAISALS ARE.

WE MAY TO TWEAK THE PROGRAM IF THAT BECOMES A PROCLAMATION.

I AM NOT ANTICIPATING IT TO BE ONE BASED ON PRIOR EXPERIENCE,

BUT IT COULD BE. >> BLAISE, THE PROTECTION FOR THOSE BUYING THE HOME SO THE PERSON BUYING IT WILL NOT GET APPRAISAL AND WORKS BOTH WAY IN PROTECTION.

AND I APPRECIATE YOU BRINGING THAT UP.

>> SOME OF THE AREAS IF YOU LOOK AT THE MAP, THERE ARE BLOCKS THAT ARE CLEAR. IT WOULDN'T NECESSARILY.

ESPECIALLY AT FIRST, BEING NEXT TO THE 30 AND 50,000 HOME.

[01:40:11]

WE SAW FIRSTHAND NOT JUST A STORY YOU THINK WOULD HAPPEN, BUT WE SAW IT FIRST HAND IT DID HAPPEN.

IT IS NOT JUST THE ABILITY TO PROVIDE A HOME FOR SOMEBODY THAT IS STRUGGLING TO MAKE $250,000 PURCHASE DECISION.

I JUST CAN'T DO THAT. AND SAYING I CAN MAKE A HOMEOWNERSHIP PURCHASE AT 18. AND THERE ARE TO MANY BENEFITS ECONOMICALLY TO A FAMILY THAT HAVE HOMEOWNERSHIP INSTEAD OF RENTING AND STABILITY FOR THEM TO THE COMMUNITY, IT IS DOCUMENTED BENEFITS THERE. I AM GLAD TO SEE THIS WORKING -- A QUESTION THAT I HAVE WITH REGARD TO COMING UP ON THURSDAY SOME OF THOSE THINGS ARE PAYING FOR PROJECTS THAT ARE ALREADY DONE. AND SO, ONE OF THE THINGS IN HERE IS APPLICATION HAS TO BE REVIEWED AND APPROVED.

AND -- I DON'T WANT TO GET INTO TOO MANY DETAILS SINCE THAT IS NOT ON THE AGENDA SPECIFICALLY. BUT WILL THE FUNDING FROM THAT COME FROM THAT $1 MILLION? OR COME FROM MIP? I WASN'T REAL CLEAR ON WHAT YOUR -- BECAUSE YOU MENTIONED IN THERE MAYBE HAVING A CONVERSATION ABOUT EXTENDING THIS FOR A WINDOW TO SOMEBODY THAT HAS DONE SIMILAR PROJECTS TO MAKE SURE WE ARE HAVING A CHILLING EFFECT BY REFUSING TO ACCOMMODATE THOSE JUST JUMPED GUN PURSUING WITH CONVERSATIONS WE HAD AND RESOLUTIONS WE PASSED LAST YEAR IN ANTICIPATION OF

HAVING A FULL PROJECT IN PLACE. >>ROBERT HANNA: I THINK MIPS ARE CANDIDATE OF THE COURSES TO PREVENT PILOT PROGRAM WITH THIS PROGRAM NEXT YEAR. AND YOU ARE CORRECT.

THAT IS THE REASON WHY I WANT TO BE VERY CLEAR ABOUT THE APPLICATION. AND THE ONLY REASON WHY I AM BRINGING YOU ALL THIS ON THURSDAY TO LOOK AT PAY IN ARREARS IS BECAUSE I DON'T WANT THAT HOMEBUILDER TO SAY I HAVE A RAW DEAL, RIGHT. I IN GOOD FAITH DID THIS.

AND IN HIS DEFENSE, WE DIDN'T HAVE AN APPLICATION SET UP FOR THAT. SO I APPRECIATE HIM COMING FORWARD SAYING YOU SAW THE DOCUMENTS ON THE AGENDA ITEM.

GIVE THE DETAILS ON THURSDAY. BUT THAT WILL BE FOR YOU ALL TO SURVIVE. I WILL SAY IF WE SAY NO, IT COULD INTENTIONALLY -- COULD INDIANA TENSION ALLEY HURT OUR OPPORTUNITY TO DO THIS. BUILD HAS DONE COMPACTLY WHAT WE PUD THE PROGRAM OUT TO DO AND INCUMBENT UPON US TO HONOR OUR

PROGRAMS. >> SINCE THERE IS A BUDGET DISCUSSION, WHERE WILL THAT COME FROM FOR THE MIP.

>> THE MIP IS THE PERFECT PLACE. >> THIS WILL BE BE IN '24 ANYWAY. NOT '23.

>>ROBERT HANNA: YES, SIR. THAT REDUCE OUR MIP BALANCE.

WHEN YOU APPROVE THAT WHEN WE BRING THE BUDGET FORWARD ADOPTED

AS A LINE ITEM FOR FY 2023. >> THANK YOU.

[01:45:03]

I DO APPRECIATE WHAT -- WHAT YOU SAID, MAYOR HURT AND YOU SPECIFICALLY, OF MONITORING THE PROCESS AND TRACKING THE KEY METRICS OF THE PROJECTS BEING COMPLETED AND DIFFERENT THINGS LIKE THAT. I THINK THAT IS DEFINITELY SO -- SO HELPFUL. I WOULD APPRECIATE AS WELL THE OPPORTUNITY TO SHOWCASE AS WE ARE DOING THIS AND THINGS WE LEARN ALONG THE WAY THAT MAYBE WE CAN DO BETTER OR MAYBE WE NEED TO READJUST ALMOST TO HAVE AN OPPORTUNITY TO CREATE CASE STUDIES IN A SENSE TO WHERE THERE COULD BE SOME OPPORTUNITIES FOR TESTIMONIALS AND DIFFERENT THINGS THAT WE ARE CREATING IN THIS NEW -- THIS NEW ADVENTURE ALONG THE WAY.

I DID HAVE A QUESTION. AND BLAISE, YOU KIND OF MENTIONED THIS EARLIER, SOME OF THE CONCERN AND THOUGHT YOU HAD ABOUT IT. ARE WE SPECIFICALLY WORKING WITH SPECIFIC APPRAISERS IN GENERAL THAT ALREADY -- THAT IS STILL

OPEN FOR HOWEVER. >>ROBERT HANNA: THAT IS THE DAEKD, ALY MORTGAGE MARKET. WE ARE NOT INFLUENCING ANY OF

THAT PROCESS. >> JUST WANTED TO DOUBLE CHECK.

>> ROBERT, IN A CASE WHERE A HOMEBUILDER APPLIES, GOES THROUGH THE PROCESS, AND THEN -- LET'S JUST SAY MARKET CONDITIONS CHANGE AND AN APPRAISER COMES IN AND SAYS, LOOKS LIKE YOU BUILT A $190,000 HOUSE. WOULD BE PARTICIPANTS STILL BE ABLE TO AT LEAST BENEFIT FROM THE PORTION OF IT THAT WOULD BE

UP TO $183,000? >> YES, AND WE HAVE GOT A -- THERE HAS TO BE SOME FLEXIBILITY IN THIS SO WHEN WE LOOK AT THE APPLICATION IN THE PROGRAM, YOU RAISED A GREAT POINT AND ONE I HAVEN'T CONTEMPLATED. IF THE MARKET CONDITIONS CHANGE THE POINT THAT THE BUILDER BUILT WHAT HE WAS GOING TO AND THE FINAL APPRAISAL AND HIGHER THAN THAT.

HONOR THE INITIAL APPRAISAL THAT THE BANK MADE THE LOAN FOR AND

AND NOT PUNISH THE PERSON. >> WE NEED TO SPECIFY THAT IF WE

DO THIS -- >>ROBERT HANNA: -- IF IT IS

SUCCESSFUL. >> -- IF IT IS SUCCESSFUL OVER TIME. WE WILL RAISE THE VALUE IN THE NEIGHBORHOODS. HAND THIS IS A VERY REAL ISSUE

THAT WE WILL HAVE TO CONSIDER. >> THE BUILDER THAT WILL BE INVOLVED IN THIS IS MOST LIKELY NOT THE BUILDERS OUT THERE DOING FULL SUBDIVISIONS OF 400 HOUSES. MOST LIKELY NOT GOING TO BE COST EFFECTIVE FOR THEM TO BE INVOLVED.

YOU WILL GET THE SMALLER BUILDERS, THE FIVE AND TEN OF THE 15. ARE WE GETS THEIR FEEDBACK?

>>ROBERT HANNA: WE ARE. >> I KNOW THIS IS NOT THE FINAL VERSION BUT A PLAN TO GET THOSE BUILDERS? AGAIN, THE BUILDER IS THE CUSTOMER IF WE ARE NOT GETTING THEIR FEEDBACK, WE ARE LEAVING A GAP.

ARE ARE WE FOCUSED ON THOSE WHO DO IT.

>>ROBERT HANNA: WE HAVE BEEN INTENTIONAL OF ENGAGING THE BIG COUNTRY HOME OWNERSHIP ASSOCIATION.

THEY BUILD IN LARGE AND SMALL AREAS TOO.

THE FEEDBACK HAS BEEN POSITIVE. THE GOOD THING ABOUT THIS, THERE ARE IS NOT THE TEN COMMANDMENTS. WE CAN CHANGE THEM.

WE NEED TO MAKE ADJUSTMENTS IF THE PROGRAM IS ROLLED OUT AND IN ORDER TO BE EFFECTIVE AND RECEIVE FEEDBACK.

THIS ISN'T WORKING AND MAYBE YOU WOULD, WE ABSOLUTELY BOO ADJUST AND PIVOT IN THEN THISSON AND WE HAVE DO DONE THE DUE DILIGENCE TO GET A PRODUCT OUT THERE AND GET READY TO GO.

>> WEAL DATE $1 MORE IT. HOPEFULLY THIS NOT THE CASE.

WE DIDN'T GET IT RIGHT. YOU DIDN'T GET ANYBODY TO BITE ON THIS. WE JUST DON'T SPEND THE MONEY.

THE MONEY STAYS IN THE AGAIN TRAL FUND OR MIP AND WE DON'T

SPEND IT ON ANYTHING ELSE. >> WE LOSE TIME.

>> TIME, POSSIBLY. >> MY POINT, IF NOT TO BEAT THE DEAD HORSE. IF WE DO IT RIGHT, DO IT RIGHT THE FIRST TIME AND COMES FROM FEEDBACK FROM DEVELOPERS THAT

ARE IN THE PROJECT. >>ROBERT HANNA: I THINK I HAVE DONE THAT. TIME WILL TELL, BUT I THINK I

HAVE DONE THAT BLAH. >>BLAISE REGAN: NOT THE ONLY CUSTOMER IN THE SCENARIO BECAUSE IT IS MEETING THE NEEDS OF THE BUILDERS BUT THE BANKS ARE DOING THE FINANCING AND ULTIMATELY THE HOMEOWNER. BUT ROBERT HAS BEEN WORKING WITH THE VARIOUS PARTIES TO TRY TO COME UP WITH A PROCESS AND APPROACH THAT ADDRESSES CONCERNS PARTICIPATE IN RAISED BY THE DIFFERENT PARTIES AND TRY TO BRING ABOUT A SUCCESSFUL PROGRAM

[01:50:05]

BUT TIME WILL TELL. I AM EXCITED ABOUT THE OPPORTUNITY TO HAVE SOMETHING SPECIFIC WITH STEPS THAT CAN BE FOLLOWED TO SUCCESS THAT HO HOPEFULLY BRINGS ABOUT SOMETHING WE HAVEN'T SEEN WITH INFILL DEVELOPMENT.

>> MY COMMITMENT TO COUNCIL IS TO MOVE FORWARD WITH THIS PROGRAM. WE WILL GIVE IT A BIT OF AIR AND ADJUST FREQUENTLY IF NECESSARY. WE HAVE TO HAVE A STARTING POINT AND DO ENOUGH DUE DILIGENCE AND TALK TO APPROPRIATE MEMBERS ON THE BUILDER'S SIDE. THE WHOLE -- THE WHOLE PROCESS, TO HAVE SOMETHING THAT WILL SEE SOME RESULTS.

THE BIG THING I DON'T KNOW IS JUST WHAT DOES THE FINANCE MARKET DO, RIGHT. INTEREST RATES CONTINUE TO MOVE UP, THAT HAS -- THAT HAS AS CHILLING EFFECT.

IT HAD A CHILLING EFFECT ON BUILDING PERMITS TODAY.

RESIDENTIAL CONSTRUCTION. OUR PERMITS ARE DOWN THIS TIME LAST YEAR AND LARGE PART BECAUSE OF THE INTEREST MARKET.

AND SO WE MIGHT FIND BUILDERS TAKE ADVANTAGE OF THIS BECAUSE OF OF WHERE PEOPLE ARE IN THEIR AFFORDABILITY RIGHT NOW.

IT COULD BE A REALLY POPULAR PROGRAM.

WE JUST DON'T KNOW. I THINK WE ARE AT A POINT WHERE WE BAITED THE HOOK. WE STICK IT IN THE WATER AND WE

WILL SEE WHAT HAPPENS. >> GOOD JOB.

>> WELL-DONE, SIR. >>ROBERT HANNA: THE NEXT ITEM I TOLD YOU ALL WE WOULD TALK ABOUT THIS.

THE LAST TWO COUNCIL RETREATS, WE TALKED ABOUT HAVING A BOND ELECTION. AND WE NARROWED THE PROJECT LIST TO THESE THREE DIFFERENT ELEMENTS.

$15 MILLION FOR ZOO IMPROVEMENTS.

THAT HAS ABOUT A 1.4 CENT IMPACT ON THE TAX RATE.

$28 MILLION FOR RECREATION CENTERS AT GV DANIELS AND CESAR CHAVEZ ABOUT 2.6% TAX RATE IMPACT.

$9 MILLION FOR LAKE BY KEY HIKE AND BIKE TRAIL.

LESS THAN A PENNY, 8/10 OF A PENNY IMPACT TO THE TAX RATE.

THE TOTAL IMPACT FOR $52 MILLION PROJECT IS APPROXIMATELY $.48.

THIS WAS GIVEN US TO BY OUR FINANCIAL ADVISORS THAT HELP WITH US SOME OF THE DETERMINATION OF BOND ELECTIONS.

KNEEING THESE NUMBERS WILL GO UP AND DOWN -- THESE NUMBERS ALSO GO UP AND DOWN WITH THE NUMBERS. MAY BE CLOSER THAN $.05.

CLOSER TO $.04. IT WILL BE AROUND THAT TARGET.

WANT TO BE CLEAR WITH THAT. IF WE CALL A BOND ELECTION IN NOVEMBER WHICH IS WHAT COUNCIL CONTEMPLATED AT THE LAST COUNCIL RETREAT, WHERE HE NEED TO DO THAT IN AUGUST.

IT WILL NOT HAVE AN IMPACT ON THE TAX RATE TO FISCAL YEAR '24.

BECAUSE IT WILL GO THE ELECTION AND THE CITIZENS WILL VOTE UP OR DOWN. IF THEY CHOSE TO FUND THESE PROJECTS. AND WE WOULD ISSUE DEBT ISSUED ON A TIMELINE THAT WOULDN'T AFFECT THE NEXT YEAR TAX RATE IN FISCAL YEAR '25. TIMELY IN A SENSE THAT WE NEED NO KNOW IF WE ARE GOING TO CALL T THIS. DOESN'T NECESSARILY IMPACT THE BUDGET FOR FY 2024. DOES THAT MAKE SENSE? DO WE NEED TO PLAN TO BRING Y'ALL A BALLOT MEASURE IN AUG AUGUST?

>> I WILL START. I THINK THAT WHEN WE ARE TALKING OF INFILL DEVELOPMENT AND HOW IMPORTANT IT IS, I AM JUST GOING TO TALK ABOUT THE REC CENTERS FIRST.

I THINK THOSE ARE EXTREMELY IMPORTANT FOR INFILL DEVELOPMENT IN PARTS OF OUR COMMUNITY. THOSE WEATHER CENTERS ARE END OF LIFE.

THE OPPORTUNITY SEE BUT I THINK IT IS VIABLE TO HELP COMPLEMENT THIS INFILL DEVELOPMENT. CAN WE LIVE WITHOUT THEM, I THINK WE CAN. BUT IT IS VITAL FOR INFILL DEVELOPMENT. OUR ZOO -- THAT IS OUR SHINING STAR FOR TOURISM AND TO OUR CITY.

AND IMPROVEMENTS TO THE ZOO ARE SUBST SUBSTANTIAL. WE HAD THE PRESENTATION DURING THE RETREAT. THE THE ZOO CONTINUES TO DO GOOD WORK. GOOD THINGS.

I THINK IT IS IMPORTANT THAT WE KEEP IMPROVING THE ZOO OUR WALKING TRAIL, THE KIRBY LAKE HIKE AND BIKE TRAIL.

[01:55:01]

AND THE AMOUNT OF CITIZENS WE H HAD. I THINK THESE ARE ALL VERY IMPORTANT PROJECTS. THEY ARE IMPORTANT IN DIFFERENT WAYS. I DON'T HAVE A PROBLEM PUTTING THEM ON THE BALLOT, BUT I WOULD LIKE TO HEAR FROM THE COUNCIL.

>> ROBERT, DEBT, IF THE $52 MILLION WAS VOTED ON AS A BOND, I THINK OUR DEBT SERVICE IS $..14.

>>ROBERT HANNA: SIR, THAT IS RIGHT.

>> IF APPROVED WHAT DOES THIS GO UP TO.

>>ROBERT HANNA: LESS THAN .19. AROUND THAT NUMBER.

>> THE HIGHEST WE HAD IN MAYBE SIX YEARS? 2016 WAS LOWER. I THINK WE PEAKED IN 22021.

>>ROBERT HANNA: 2019 WE PEAKED, YES, SIR.

>> YOU KNOW I -- ARE YOU FINISHED?

>> YEAH, GO AHEAD. >> I REMEMBER GOING BACK -- WELL -- WHEN -- WHEN WE PASSED ON AN OPPORTUNITY TO PUT TAX ISSUES ON A BOND. COUNCILMAN PRICE AND I WERE THE ONLY ONE ON COUNCIL AT THAT TIME.

AND AT THAT POINT, WE WERE TRYING TO FIGURE OUT WHAT WE WANT OUR REC PROGRAMS WILL BE. WE HAVEN'T DONE ANYTHING SINCE THEN. AND I THINK WE HAVE MISSED THAT OPPORTUNITY. I THINK THAT WE NOW HAVE DONE A GOOD JOB DEFINE WHAT WE WANT OUR REC CENTERS TO BE AND SOMETHING THAT THE MAYOR MENTIONED.

A LOT OF THESE CENTERS ARE OLD AND WAY PAST THEIR USEFUL LIFESPAN. AND I AGREE, WHAT WE DIDN'T DO THEN, WE NEED TO DO NOW AND PUT SOMETHING FORWARD OUR RECREATIONAL CENTERS. THE ZOO -- I AGREE WITH THE MAYOR, SUCH AN INTEGRAL PART OF OUR CITY.

JESSIE IS HERE. AND YOU KNOW, IF I REMEMBER CORRECTLY FROM HIS PRESENTATION, THAT -- THAT WE ARE MISSING OUT SOME SOME OPPORTUNITIES. SOME REVENUE OPPORTUNITIES AT THE ZOO THAT WE -- WE REALLY NEED TO TAKE ADVANTAGE OF.

AND I THINK IT GOES A LONG WAY FOR THAT.

AND HIKE AND BIKE. WE HAVE QUALITY F OF LIFE PEOPL WANT TO GET OUT AND DO THINGS. AND I THINK THIS IS ALL WELL THOUGHT OUT AND NEEDED PROJECTS IN THE PAST.

WE HAVE DONE IT SEPARATELY SO IT IS NOT -- NOT THAT YOU VOTE FOR ONE OR YOU HAVE TO VOTE FOR ALL OF THEM.

I THINK THAT IS A GOOD IDEA. ZOOS ARE ONE.

REC CENTERS ARE ONE. THE HIKE AND BIKE TRAIL IS ONE.

GIVES PEOPLE A REAL OPPORTUNITY. BUT I THINK IT ALSO IF ALL THREE PASSED, THAT ALSO GIVES SOME VALIDITY TO, HEY, THIS IS THE DIRECTION THAT THE CITY WANTS US TO GO.

ROBERT, ONE FOLLOW-UP ON THIS. IF IT GOES TO 1.9 ON THE DEBT SERVICING. AND IN GENERAL, OUR GENERAL OPERATION .58 OR .59 IN THAT RANGE.

MAPPING IT OUT. GOES TO BONDS.

GETS APPROVED. ARE WE LOOKING AT DOWN THE ROAD 25, 26? ARE WE LOOKING AT A TAX RATE BACK UP TO 77, 78. WHAT IS THE REAL LIFE CONSEQUENCES OF BOND BEING APPROVED.

>>ROBERT HANNA: THAT IS EXACTLY RIGHT.

ALL THINGS BEING EQUAL. APPRAISALS DON'T GO UP IN '25 AT ALL. WE KNEE THAT IS IMPOSSIBLE, BUT LET'S 'SAY IT DOESN'T. .7763 OR SOMETHING LESS THAN THAT TAX RATE, WHICH IS LOWEST THAN OUR HIGHEST OVER THE LAST TEN YEARS -- NINE YEARS, STILL PRETTY CLOSE TO IT.

A COUPLE OF THINGS THAT I FAILED TO MENTION THAT I SHOULD MENTION ON THE ZOO -- THE ZOO'S PROGRAM OF SERVICES THAT THEY ARE LOOKING TO BUILD ON THE MASTER PLAN.

AND OBSERVE PUBLIC, PRIVATE OPPORTUNITIES PROVIDED THE CITY VOTERS APPROVE SPENDING BOND FUNDS ON THE IMPROVEMENTS.

AND MY GOAL WOULD BE IF THIS IS SOMETHING YOU GUYS WANT TO LOOK AT IN AUGUST, WE WILL HAVE JEST AND LESLIE GOING THROUGH THE PROJECTS ONE MORE TIME TO GIVE THE COMMUNITY A GOOD REMINDER AND A NEW MEMBERS OF THE COUNCIL A GOOD REMINDER WHAT WE ARE SUGGESTING THAT WE DO. YOU ARE SUGGESTING THE COUNCIL RETREATS AND HAVE BEEN A BIT. PUBLIC HEARINGS FOR PEOPLE TO COME AND ENGAGE WITH COMMENT ON COUNCIL WITH THAT.

[02:00:02]

IT IS UP TO THE VOTERS. IF THEY WANT IT, THEY WANT IT.

IF THEY DON'T, THEY DON'T, WHICH IS THE BEAUTY OF THE GENERAL

BOND SELECTION, ELECTION. >> I AGREE WHAT KYLE WAS STAYING, LISTING THEM SEPARATE AND LETTING THE VOTERS CHOOSE.

>> AND IT IS -- WHAT IT POINT 4. >>ROBERT HANNA: .48.

ACCOUPLE A NICKEL. FOR PLANNING PURPOSES, ASSUME IT

IS A NICKEL. >> WELL -- OKAY, THANK YOU.

>> ROBERT, THE PROPOSED $28 MILLION, $27 MILLION, $28 MILLION FOR THE REC CENTERS IS RESULT OF LESLIE AND THE PARKS T TEAM.

>>ROBERT HANNA: I WENT TOO FAST. >> THEM HAVING MEET INFORMATION THE NEIGHBORHOOD AROUND THEM. IS THAT ACCURATE?

>> THAT IS ACCURATE. THOSE TWO PROJECTS -- AND THERE ARE OTHER REC CENTERS THAT WITH HE HAD.

WE CHOSE TO FOCUS ON THESE TWO THROUGH THE BOND COMMITTEE PROCESS THAT WAS DONE A COUPLE OF YEARS BACK.

THE REASON WHY WE ARE AT THOSE DOLLAR AMOUNTS WE ENGAGE THE NEIGHBORHOOD AND THE USERS MUCH THOSE FACILITIES AND ASKED THEM WHAT YOU WOULD LIKE TO SEE AND PARED BACK.

NO WAY TO AFFORD THOSE. WE HAVE GOOD PRODUCT.

AND THEY WILL BE IMPRESSIVE FACILITIES.

THEY WOULD BE COMPETITIVE FACILITIES FOR CERTAIN AND MEET THE NEEDS THAT WERE EXPRESSED BY THE NEIGHBORHOOD.

COULD WE BUILD SOMETHING LESS THAN THAT? 100%. AND IF THIS BALLOT MEASURE FAILED, MY SUGGESTION WOULD BE TO GO BACK TO THE DRAWING BOARD AND DESIGN SOMETHING THAT IS MORE IN THE LINES OF A COMMUNITY CENTER VERSUS A REC CENTER THAT HAVE MEETING SPACE IN A KITCHEN.

THAT KIND OF THING. TO BE MORE IN KEEPING WHAT WE HAVE NOW WITH AT THAT NEWER VERSION OF IT.

A DIFFERENT VISION THAN WHAT WE HAVE NOW.

A BOLDER VISION AND MORE -- MORE IN KEEPING WITH WHAT OUR RECREATION CENTER IS INTENDED TO BE.

IT IS WHY IT IS THE DOLLAR AMOUNT IT IS AT.

>> EVEN THIS ONE IF I REMEMBER CORRECTLY -- LESLIE MAY BE ABLE TO ANSWER. AND I DON'T KNOW IF YOU WERE PART OF THESE -- I DON'T KNOW IF YOU WERE, BUT LIKE THE -- THE CESAR CHAVEZ CENTER, TALK OF PUTTING IN A POOL.

THAT IS OBVIOUSLY PHASE II. NOT PART OF THIS.

BUT THIS PARTICULAR DECLINE ALLOWS US TO -- DESIGN ALLOWS USES TO ADD THAT INDOOR AND PO POLICY DISCUSSION. PHASE ONE IS THE NEW RECREATION CENTER THAT ADD AMENITIES WE DON'T OFFER AT THE MOMENT AND DOES SO AT THE MANNER TO DO IT. THE REC CENTER IS END OF LIFE.

AND THEY HAVE GOT TO GO AND DO SOMETHING.

I THINK IT WILL BE REGRETTABLE FOR THIS TO FAIL BECAUSE THROUGH THE BELLS AND WHISTLES OPPOSEDED TO -- WE CAN GET SOMETHING FOR HALF THE COST THAT IS A NEW MODERN STRUCTURE WITH MULTIUSE CAPE THABLT DOESN'T HEIGHTEN THE TAX RATE BY A NICKEL.

MORE THAN HALF THE RATE OF INC INCREASE I DON'T KNOW WHERE WE COME DOWN WITH THAT.

OFFER BOTH THIS WONE AND THIS ONE.

>> THE SAME ANSWER THIS WEEK. >> WHAT HAPPENS IF THEY BOTH

PASS. >> YOU CAN'T WRITE BALLOT

MEASURE, IF NOT A, THEN B. >> I THINK THIS $28 MILLION IS

NOT ALL THE BELLS AND WHISTLES. >> IT IS NOT.

>> NOT JUST THE BARE BONES. REMEMBER WE HAD THE COMMUNITY INPUT MEETINGS AND PEOPLE ASKED WHAT THEY WANTED.

NO, SIR THE MERE SAY DES BUT THE HONDA.

[02:05:03]

NO OFFENSE TO THE -- >>THE PINTO.

>> IT IS NOT THE PINTO. THANK YOU FOR THAT PICKLEBALL REFERENCE. IT IS A GOOD STEP A GOOD FIT OF

WHAT LESLIE AND HER GROUP. >>ROBERT HANNA: IMPORTANTLY, WHAT THE COMMUNITY SAID THEY WANT.

WHETHER THE ENTIRE COMMUNITY SAYS THEY WILL FUND THAT, THAT IS THE NEXT QUESTION. AND WE DON'T KNOW THE ANSWER

UNTIL WE PUT IT OUT THERE. >>THE $9 MILLION FOR KIN BEE LAKE HIKE AND BIKE TRAIL. CONNECT THE KIRBY TO THE

WATERWAY. >>ROBERT HANNA: THE MAPLE STREET PROJECT. A SMALL PORTION TO COLLECT MAPLE TO THE KIRBY ALOINMENT. BUT CERTAINLY ENOUGH MONEY TO DO THAT. YES, SIR.

>> JUST AROUND KIRBY? >>ROBERT HANNA: JUST AROUND KIRBY. YOU HAVE A PARK SYSTEM.

ALMOST A MARATHON, 22.2 MILES. >> WAIT, WHAT IS FUNDING BETWEEN THE EXISTING THAT WE JUST BUILT ON STAY SKP CREEK AND KIRBY?

>>ROBERT HANNA: MAPLE GROVE PROJECT THAT HAS A HIKE AND BIKE

TRAIL. >> ALREADY FUNDED?

>>ROBERT HANNA: YES, SIR, ALREADY FUNDED.

>> ON TOP OF THAT I ASKED ABOUT IF DOING THIS, WOULD WE TAKE ADVANTAGE OF THAT AND NOT HAVE LOOP AROUND THE LAKE 23015, MADE A LOT OF IMPROVEMENTS TO THE ZOO.

AND THAT WAS FUNDED HALF BY THE PUBLIC THROUGH THE BONDS AND HALF BY PRIVATE INVESTORS THAT WERE PASSIOATE ABOUT THE ZOO.

AND IMPROVING THE OFFERING WHAT IS THE NUMBER ONE ATTRACTION IN ABILENE. AND AN OPPORTUNITY FURTHER EXPAND AND TAKE ADVANTAGE OF THAT PRIVATE FUNDING AND MARRY THAT WITH PUBLIC FUNDING TO PROVIDE THIS OPPORTUNITY FOR REVENUE FROM THE RESTAURANT AND THE -- THE NEW FACILITIES FOR THE IS IT JAGUAR AND LIONS. CHEETAHS --

>> OH, MY. >> RIGHT THERE WHERE YOU ARE EATING. AND SO THE CONCEPT IS REALLY NIGHT, BUT HAVING HAVING PRIVATE FUNDING TO FUND HALF OF THAT, A WONDERFUL OPPORTUNITY FOR THE CITIZENS OF ABILENE FOR A GREAT ATTRACTION. THEY GO TO THE ZOO.

THEY SPEND MONEY AT RESTAURANTS. THEY ARE BUYING THINGS HERE.

THEY HAVE SALES TAX FROM THAT. AND THE REC CENTERS HAVE JUST BEEN IGNORED. AND IN 2015 WE DIDN'T PUT THE REC CENTER ON THERE. AND THE REC CENTER ITEM NOT ON THERE WAS A SUPER REC CENTER AT ROSE PARK.

DID NOT TOUCH CESAR CHAVEZ AT SEARS PARK.

IF WE ARE GOING TO BE IN THE REC CENTER BUSINESS, WE NEED TO HAVE, SAY, REC SENT CENTERS THAT YOU GO IN GO IN WHEN IT IS RAINING AND NOT GET WET. IT HAS GOTTEN TO THE POINT WHERE THEY ARE GOING TO BE FALLING APA APART. AND WE REACHED A POINT WHERE THEY TEAR THEM DOWN BEFORE LONG. IF WE DON'T DO SOMETHING DRASTIC WITH REGARD TO A REPLACEMENT THAT THIS -- THAT IT PROPOSES AND THEN THE KIRBY LAKE, HIKE AND BIKE TRAIL IF WE TALK TO THE COMMUNITY. THAT HIKE AND BIKE OPPORTUNITIES ESPECIALLY SINCE COVID HAVE REALLY BEEN AN ASPECT OF THE COMMUNITY THAT PEOPLE ARE WANTING MORE OF.

AND HAVING AN OPPORTUNITY FOR THAT.

IT IS LONG ENOUGH THAT YOU CAN DO LIKE A 5K AROUND IT WITHOUT HAVING THE POLICE BLOCK OFF STREETS OR ANYTHING.

SO THERE WAS GOOD OPPORTUNITIES FOR THE PERSPECTIVE OF NONPROFITS DOING FUNDING AROUND THERE AND A HEALTHY WAY TO ADD TO THAT -- THAT TRAIL SYSTEM THAT THE CITY OF ABILENE.

SO AS WE LOOK AT ENCOURAGING PEOPLE TO MOVE HERE OR ENCOURAGING KIDS TO COME HERE FOR COLLEGE, TO STAY HERE.

AND HAVE A FAMILY HERE, THEY ARE LOOKING AT AMENITIES LIKE THIS.

AND HAVING THIS PUT BEFORE THE VOTERS, I THINK THE TIME HAS --

[02:10:01]

AND LET'S -- LET'S GO FORWARD WITH THAT.

AND INSTEAD OF TALKING ABOUT IT. >> I DO APPRECIATE THE ACCESSIBLE SPACES THAT A LOT OF THESE DIFFERENT PARKS OFFER.

AND I DO APPRECIATE THE POTENTIAL FOR THE -- IT IS A PLACE FOR WELL BEING AND DID PROMOTE A LOT OF DIFFERENT THINGS IN TERMS OF THE ENRICHMENT OF THE SOCIAL AND ALL OF THAT. BUT ALSO THE EDUCATIONAL COMPONENT IT CAN BRING TO A LOT OF THE DIFFERENT FAMILIES THAT UTILIZE A LOT OF THESE SPACES. ALONG WITH AS MANY ARE AWARE THE PERCENTAGE OF -- OF DIFFERENT THINGS IN OUR SOCIETY THAT ARE ON THE RISE SUCH AS MENTAL HEALTH ISSUES AND CONDITIONS.

I DEFINITELY THINK IT IS A GREAT OPPORTUNITY FOR PEOPLE TO SPEAK TO SHARE WHAT IS MOST IMPORTANT TO THEM.

I DO APPRECIATE THAT THEY OFFER MORE THAN JUST THE RECREATIONAL COMPONENT IN TERMS OF PLAY. FOR MANY FAMILIES, THAT IS LIFE AND DEATH. AND GENERATIONAL CHANGE WHICH IS GRE GREAT.

>> I THINK THESE ARE -- I FEW THESE FROM A ECONOMIC DEVELOPMENT STANDPOINT, YOU KNOW, THE QUALITY OF LIFE COMPONENT AND ECONOMIC DEVELOPMENT.

IF WE ARE GOING TO RECRUIT AND RETAIN YOUNG TALENT AND YOUNG FAMILIES, WE NEED AFFORD AFFORDABLE HOUSING AND QUALITY LIFE AND PUBLIC SAFETY AND CRITICAL COMPONENT OF THAT.

I HAVE BEEN BOTH TO JV DANIELS AND CESAR CHAVEZ SEVERAL TIMES AND THEY ARE -- TO DESCRIBE THEM AS BEING IN A STATE OF DISREPAIR I THINK IS NOT ADEQUATE THERE. JUST OLD.

THEY HAVE BEEN AROUND FOR DECADES AND DECADES.

IF WE ARE GOING TO INVEST IN INFILL DEVELOPMENT PROGRAMS AND ATTRACTING BUSINESSES, WE NEED A PLACE FOR PEOPLE TO GO AND THINGS FOR THEM TO DO. THESE THREE TOPICS.

THE ZOO, THE REC CENTER. CONNECTING OUR PARK SYSTEM.

AROUND KIRBY LAKE. ENHANCE OUR ABILITY TO REKRUPT AND RETAIN TALENT. BUT THE BEAUTIFUL -- RECRUIT AND RETAIN TALENT. BUT BEAUTY OF THIS WE CAN PUT IT ON THE BALLOT. AND ANY TIME I WOULD LIKE THAT, THE PEOPLE TO TELL US WHAT THEY WANT AND WHAT THEY DON'T WANT.

I AM IN FAVOR OF PUTTING THIS ON THE BUDGET.

>> I AM IN SUPPORT OF ALL THREE OF THESE BEING ON A BOND ISSUE.

I THINK THESE ARE -- IT IS APPROPRIATE TO LET THE VOTERS SPEAK ON HOW MUCH THEY VALUE THESE THINGS.

I STILL THE PRICE OF THE REC CENTERS.

LET ME MAKE A POINT WITH THE HYPOTHETICAL.

WHAT IF THEY WERE $80 MILLION? I AM LESS CERTAIN THAT THE HIGHER THE PRICE GOES, THE LESS I AM CONVINCED THAT THE VOTE WILL VOTE FOR THAT OUTSIDE OF THE PEOPLE DIRECTLY SERVED BY THESE NEIGHBORHOOD REC CENTERS. SO HOW DO WE ARRIVE AT THAT THE NUMBER BECAUSE YES, WE NEED TO REPLACE THEM.

BUT YOU CAN REPLACE THEM WITH A STRUCTURE AND THEN FILL IN THAT STRUCTURE WITH ACTIVITIES LATER. WE ARE DOING MORE THAN JUST REPLACING THE STRUCTURE. WE ARE BUILDING THESE THINGS TO BE EXAMPLES TO BE VERY NICE AND HOW CONFIDENT WE ARE THAT WE HIT THE RIGHT NUMBER. WE SAID WE PAIRED THESE BACK D DOWN.

I WITH A HATE TO SEE THIS FAIL BECAUSE IT IS TOO EXPENSIVE.

>> COUNCILMAN, YOUR CRYSTAL BALL IS BETTER THAN MINE.

MAYBE BECAUSE YOU ARE A ELECTED OFFICIAL.

YOU KNOW THE PEOPLE'S WILL MORE THAN I DO BECAUSE YOU JUST WENT THROUGH AN ELECTION. I WILL SAY I TRUST THE PROCESS THAT WE USED WHICH ENGAGED THE CITIZENS, ENGAGED THE USERS OF THESE FACILITIES. WE HAD MULTIPLE PUBLIC HEARINGS DURING THE BOND COMMITTEE PROCESS ABOUT THESE ITEMS. WE DELAYED RECOMMENDATIONS FROM THAT COMMITTEE TO GARNER MORE CITIZEN INPUT. THOSE CITIZENS LIKE EVERYTHING ELSE THAT CHOSE TO BE ENGAGED WERE ENGAGED AND HAD AN OPPORTUNITY TO COMMENT. SOME DIDN'T -- WEREN'T OBVIOUSLY THERE BECAUSE THEY CHOSE NOT TO BE.

I DON'T KNOW WHAT THE ANSWER IS. MAY FAIL BECAUSE OF THE PRICE TAG I THINK WE HAVE TO HONOR THE PROCESS THAT WE USED AND HONOR THE VOICES THAT WE HEARD AND BRING THAT TO THE VOTERS.

WE FAIL, WE FAIL KNOWING THAT WE DID THE WILL OF THE PEOPLE THAT PROVIDED THE INPUT. THAT SHOWED UP TO PROVIDE THE INPUT. WE GO BACK AND LOOK AT IT AGAIN IN A TWO-YEAR TIME FRAME TO COME FORWARD AND SAY, THIS IS A DRAMATIC -- HAS TO BE A COMPLETELY DIFFERENT DESIGN OR DIFFERENT PROJECT. AND I THINK WE CAN DO THAT

[02:15:01]

DOES THAT MAKE SENSE. >> YEP.

>> I WANT TO ADD TO THAT. WE DID THROUGH THE PROCESS AND WE DID HAVE A BOND COMMITTEE. AND MEET WITH PEOPLE IN ON THAT COMMITTEE. I ASKED THEM.

THEY SAID THIS IS WHAT WE NEED. I DON'T THINK THEY ARE ASKING

FOR A LOT OF BELLS AND WHISTLES. >> AGREE WE NEED GW, KIRBY, THE BIKE TRAIL CONNECTING ALL THAT. I LIKE WHAT BRIAN SAYS, A HEALTHY DEBATE HOW TO SPEND $28 MILLION IS IMPORTANT.

AT THE END OF THE DAY, I AM COMFORTABLE GOING BEFORE THE PEOPLE. IF THEY VOTE YES, GREAT.

BUT I ALSO APPRECIATE BRIAN POINTING THAT OUT.

$28 MILLION AND IN THIS INSTANCE UP TO THE VOTERS.

TWO QUESTIONS. ONE, DO WE HAVE RENDERING FOR

THOSE REC CENTERS IN. >>ROBERT HANNA: WE DO.

WHEN WE BRING THE BALLOT MEASURE BEFORE YOU BEFORE PLACING IT ON THE BALLOT, WE WILL GO THROUGH ALL OF THAT AND SHOW THE RENDERS. 37 AND GIVE EVERYBODY AN OPPORTUNITY TO BE REFRESHED ON WHAT WE ARE TALKING ABOUT.

>> THE SECOND ONE ON THE ZOO. THE MAYOR SAID IT THE ZOO IS OUR SHINING STAR. AND I AGREE FROM A REVENUE STANDPOINT. WE PUT IN $15 MILLION AND OTHER PRIVATE MONEY GOING IN. WHAT IS THE REVENUE INCREASE FOR THE ZOO IF PHASE ONE IS FINISHED.

>> WE WILL BRING THOSE NUMBERS TOO AS PART OF THE ZOO PROPOSAL, BUT THE REVENUES THEY GENERATE AND THEY ARE -- THEY ARE GOOD.

THEY ARE HEALTHY. BECAUSE OF WHAT IS BEING BUILT AND CAPITAL IMPROVEMENT. AND IT IMPORTANT PART OF FUNDING MODEL FOR THE MASTER PLAN. PART OF IT IS GATE RECEIPTS.

SOME OF IT IS NEW EXHIBITS. PART OF IT IS REVENUE GENERATED ON-SITE. WE WILL GO THROUGH THE WHOLE ANALYSIS THE FIRST MEETING IN AUGUST TO REMIND EVERYBODY WHAT

THAT LOOKS LIKE. >> THANK YOU.

>> I APOLOGIZE. I FORGET THAT YOU GUYS.

YOU TWO WEREN'T HERE WHEN WE WENT THROUGH THIS.

I APOLOGIZE. >> WE WERE IN THE ROOM.

WE WERE LISTENING. >> APPARENTLY NOT VERY WELL.

[LAUGHTER] >> LISTEN, WE ARE GOING TO NEED TO TAKE A BREAK HERE. [LAUGHTER] I THINK THE DIRECTION HERE IS WE WILL HAVE ALL THESE DISCUSSIONS IN AUGUST WHEN WE PUT THIS ON THE REGULAR COUNCIL MEASURE.

WE NEED TO TAKE A 20, 25 MINUTE BREAK REAL QUICK.

OUR LUNCH IS HERE. IF YOU GOT MORE QUESTIONS, BY ALL MEANS DO IT. BUT REALLY WE CAN MOVE ON, BECAUSE THESE ARE GOING TO BE SPECIFIC TO A COUNCIL MEETING.

>> I THNK THAT -- THAT IS THE LAST THING ON YOUR PRESENTATION.

>> THE LAST THING ON THE PRESENTATION.

I DON'T KNOW IF YOU GUYS WANT TO HAVE FURTHER DISCUSSION AFTER LUNCH OR MOVE FORWARD NOW. IT IS UP TO

>>MAYOR HURT: ARE WE READY? ARE WE GOOD TO GO? WELCOME BACK, EVERYONE. RIGHT NOW, I WILL LET ANYONE -- ROBERT, ANY MORE QUESTIONS ABOUT THE PRESENTATION THAT HAS BEEN PRESENTED? ANY MORE QUESTIONS ABOUT THE PRESEN PRESENTATION?

>> I DID HAVE ONE. I WAS GOING TO ASK WITH REGARD TO THE GRANTS FOR THE LEAGUES. DO WE HAVE -- I KNOW THIS IS JUST PROPOSED AND ARE WE GOING TO WORK OUT A PROCESS OR

APPLICATION FORM OR SOMETHING? >> YES, SIR.

WHAT I WOULD RECOMMEND IS TO HAVE AN APPLICATION.

AND THEY COULD SUBMIT SOMETHING SIMILAR TO THIS TO EXPLAIN WHAT YOUR PROJECT IS, WHAT YOUR COSTS ARE.

ARE YOU TRYING TO ASK FOR 100% FUNDING OR ASKING FOR MATCH FUNDING. AND THEN PROBABLY WE WOULD GO TO THE -- THE PARKS LEADERSHIP TO HELP VET THAT LIST AND MAKE A RECOMMENDATION TO THE PARKING BOARD.

SINCE THE PARKS BOARD IS RESPONSIBLE FOR CAPITAL IMPROVEMENT TO THE PARKS, ALLOW TO SEE WHO GETS THE GRANT AWARD.

AND PART OF THAT -- PART OF THE APPLICATION WILL BE AN UNDERSTANDING IF YOU GET FUNDED FOR -- LET'S SAY THAT WILEY FOLKS WERE THE ONES THAT GOT FUNDED IN YEAR AND THEY GOT

[02:20:02]

BECAUSE WE WANT TO MAKE SURE WE HIT OTHER PEOPLE TOO.

SO. >> WE WILL NEED TO -- WELL, WE NEED TO TAKE ACTION WITH A RESOLUTION OR SOMETHING TO SAY THIS IS KINDS OF THE RULES? OR IS THE PARKS BOARD ALREADY AUTHORIZED TO APPROVE THIS AND WE DON'T NEED TO TAKE ACTION

SPECIFICALLY AUTHORIZING. >> I THINK IT WILL -- IF IT IS A -- IF IT IS A EXPENSE OF PUBLIC FUNDS, THE AGREEMENT WILL COME TO COUNCIL IF IT IS OVER $50,000.

WE WILL TAKE -- BRING IT TO YOU ALL.

SO, YES, YOU WILL EVENTUALLY SEE THIS, BUT EMPOWERING THE PARKS BOARD TO MAKE THE DECISION IS A GOOD USE OF THEM AND CONSISTENT

WITH THE CHARTER. >> ROBERT, WHILE WE ARE ON THE IMPROVEMENT FUND, I TALKED TO YOU AND WITH LESLIE WITH THIS ON THE PARKS. I TAKEN FOUR OF MY NIECES TO THE SPLASH PAD. AND THERE WAS 40 OR 50 CHILDREN USING THE SPLASH PAD. THIS WAS BY RED, I BELIEVE.

BUT ONLY TWO PARK BENCHES WITH SHADE OVER THEM.

AND PARENTS WERE JUST PACKED UNDERNEATH THEM.

WHEN THE TEMPERATURES WERE 103. A LITTLE OVER THAN RIGHT NOW.

BUT PACKED IN UNDER THERE. AND KIND OF A VICTIM OF OUR OWN SUCCESS. THAT IS THE ONLY SPLASH PAD I SAW. IT WAS REDBUD.

BUT THE PROBLEM COULD BE TO DOUBLE THE SHADE CAPACITY OF THOSE. PUTTING BENCHES IN SHADE.

IT LOOKED TO BE ENOUGH SPACE ON THE OTHER SIDE OF THE SPLASH PAD AT REDBUD. OR IS THAT SOMETHING THAT BE NEED TO PUT IN THE PROPOSED EXPENDITURES IN THE MINOR IMPROVEMENT FUND. HOW DO WE GO ABOUT DOUBLING THE

SHADE CAPACITY THERE. >> IF THAT SOMETHING YOU WILL WANT TO PROPOSE, THE WAY TO DO THAT WOULD BE TO DIRECT ME TO PUT THAT IN THERE AND IF THE REST OF THE COUNCIL IS AGREEABLE, IT CERTAINLY CAN GO IN THERE.

I WILL PULL THIS UP SO I REMEMBER THE DOLLAR AMOUNT UNLESS YOU REMEMBER OFF THE TOP OF YOUR HEAD.

>> I THINK IT WAS $38,000. BUT I DON'T WANT TO MISQUOTE IT.

LESLIE, DO YOU REMEMBER THAT, OFF THE TOP OF YOUR HEAD?

>> 38,000. >> 38,000.

>> FOR THE COST TO ADD FOUR SHADE STRUCTURES AND CORRESPONDING PICNIC IS APPROXIMATELY $38,000.

I ASSUME -- IS THAT JUST FOR REDBUD?

>> JUST FOR REDBUD. >> DO WE KNOW IF THE OTHER SPLASH PADS ARE HAVING THE SAME ISSUE OR ARE THEY PRETTY WELL

COVERED. >>ROBERT HANNA: I AM UNINFORMED.

BUT WE CAN BECOME INFORMED. >> I WOULD PROPOSE THAT WE ADD THE 38,000 FOR THE SHADE AND PICNIC TABLES FOR THE SPLASH

PADS AT REDBUD. >> WITH FUNDING COMING FROM MIP?

>> MIP. >> THE $300,00 OF ARPA FUNDS QUALIFY FOR THAT SINCE IT IS PARK?

>> POTENTIALLY. WE WILL HAVE TO LOOK AT THE DETAILS, BUT TO YOUR POINT. IF WE CAN USE NONGENERAL FUND REVENUE WE CAN SURE DO THAT. WE NEED ANALYSIS.

I AM HOPE GOING WE DO THE CALCULATION THAT IS SAY LOWED --

IT WILL WASHOUT, YES, SIR. >> FOR ME, MY REACTION AT LEAST INITIALLY IS I WOULD RATHER -- AND I DON'T WANT TO PICK ONE PART AND SAY THAT IS WHAT WE ARE GOING TO DO IT AND THE OVER IS NEEDED. BECAUSE IF WE DON'T HAVE HAD FUND THERE. SO I DON'T HAVE AN OBJECTION TO PUTTING MORE SHADE THERE, BUT I WOULD LIKE FOR US TO LOOK AT ALL OF THE SPLASH PAD AREAS AND SAY, DO WE NEED TO DO ALL OF THEM? LET'S TRY TO FIND OUT THE FUNDING TO DO ALL AND TACKLE ALL OF THEM AND PROVIDE THE IMPROVEMENT FOR ALL OF THEM.

>> WE CAN HAVE THE ANSWER BY AUGUST.

NEXT HEARING ON THE BUDGET. >> THAT WILL INCLUDED IN THE

BUDGET? >>ROBERT HANNA: YES, SIR.

>> THEN I AM AGREEABLE WITH SHANE'S PROPOSITION THERE.

>> THE $2 MILLION FOR AIRPORT RAMP IMPROVEMENTS.

WE DIDN'T DISCUSS WHICH WAY. WE NEED TO HAVE DISCUSSIONS ABOUT OTHER THINGS. AND TO DO THE CO.

AND PAY IT OUT OF THE MIP. >> OKAY.

WE ARE GOING TO DO THAT. >> WE WILL GET YOU ANOTHER

COOKIE. >> YEAH.

[02:25:01]

>> ALREADY HAD ENOUGH COOKIES. >> CAN YOU HAVE TOO MANY COOKIE.

I DON'T THINK THAT IS POSSIBLE. >> ARE THERE OTHER PROJECTS THAT ARE ENVISIONED WITH THAT MONEY OR WILL IT BE AN ADDITIONAL DISCUSSION TO FIND PROJECTS. BLAISE'S SHADE FOR EVERYBODY

PROPOSAL IS THE WAY IT GOES. >>ROBERT HANNA: I WILL SAYS THERE ALWAYS AN OPPORTUNITY FOR FUNDING SMALL CAPITAL IMPROVEMENTS TO OUR PARK SYSTEM, AND WE CAN FINDS EASILY TWO MORE MILLION DOLLARS THAT ARE CONSISTENT WITH OUR MASTER PLAN TO IMPROVE OUR PARKS. AND WE TALK ABOUT -- IT WAS MENTIONED WITH INFILL DEVELOPMENT THE CONCEPT OF THAT.

BUT ALL PART OF INFILL DEVELOPMENT.

CREATING A COMPELLING MARKET FOR PEOPLE TO LIVE IN.

PARKS ARE PART OF THAT. SO, YES, TO ANSWER THAT WE, CAN WE SPEND CASH ON SOMETHING ELSE? YES, 100%.

I COULDN'T TELL YOU WHAT TODAY IS.

BY AUGUST 10, CERTAINLY COULD. >> WOULD IT BE BETTER NOT TO PUT THIS TOWARD DEBT SERVICE IF WE HAD THE BONDS?

>>ROBERT HANNA: I WOULD SUGGEST THAT, YES, IF YOU WERE GOING TO GO OUT FOR A BOND ELECTION EVEN KNOW NOT A LARGE AMOUNT IN THE TAX RATE. IT IS FOWL.24/10 OF A CENT AND STILL AN ADDITIONAL INCREMENT ON THE TAX RATE.

IF YOU WERE ASKING CITIZENS TO APPROVE UP TO A NICKEL ESSENTIALLY AND WE HAVE THE CASH, WHY DO MORE, RIGHT.

BUT CERTAINLY ELIGIBLE LIKE THE $65,000 FOR THE ZOO PERIMETER FENCE. THAT MAY LAST 20 YEARS FOR SURE.

IT IS A FENCE. A METAL FENCE.

WHY ISSUE DEBT FOR THAT. THAT $2 MILLION IS A LARGE ENOUGH AMOUNT TO CONSIDER DEBT FOR.

AND HAS A LONG ENOUGH LIFESPAN FOR AND YOU ARE CORRECT, IF YOU ARE ASKING FOR MY RECOMMENDATION, GOING OUT FOR A BOND ELECTION, I DON'T THINK YOU WOULD THROW A RAMP ON TOP OF IT.

>> IF WE GO AND PAY FOR IT NOW, WE SAVED ROUGHLY A MILLION IN

INTEREST. >>ROBERT HANNA: THAT'S CORRECT.

>> AT SOME POINT DOWN THE ROAD. A MILLION WE WOULD SAVE OF INTEREST FOR SOMETHING ELSE. I THINK IF WE CAN PAY FOR IT IN CASH AND SAVE THE INTEREST RATES.

>> CONSISTENT WITH THE COUNCIL'S POLICY ON PAY AS YOU GO FUNDING.

>> SAVING $1 MILLION ON 22 MILLION IS THE WAY I AM THINKING. AND WOULD LIKE TO LOOK -- FROM BRIAN'S POINT WHERE YOU ARE HEADED AND MAY NOT HAVE A PROJECT IN MIND, BUT WHAT WOULD COME TO MIND.

WHAT ARE WE GIVING. GOING THIS ROUTE.

THERE IS A TRADE-OFF. WHAT POTENTIALLY ARE WE TRADING

OUT. >>ROBERT HANNA: OTHER IMPROVEMENTS. SHADE STRUCTURES, SPLASH PADS.

NEW REST ROOM FACILITIES. WHETHER LIGHTS ALONG THE TRAIL.

WE ARE TREATING THAT VALUE PROPOSITION IN EXCHANGE OF USING CASH RATHER THAN DEBT. DEBT HAS A DOWNSIDE.

IT ALLOWS YOU TO DO MORE WITH LESS UP-FRONT CASH.

BUT THERE IS GOOD FINANCIAL DISCIPLINE PRACTICES THAT USE CASH FINANCING FOR THESE THINGS AND CONSISTENT WITH THESE POLICIES. IT IS REALLY WHERE YOU ALL WANT TO BE. WE CAN HAVE A LIST OF WHAT YOU MIGHT SPEND THINGS ON WITH THE AUGUST 10 MEETING IF THAT IS WHERE THE BALANCE OF COUNCIL WANTS TO GO.

MY RECOMMENDATION AS CITY MANAGER IF YOU WERE GOING TO CALL BOND ELECTION AND WERE CONCERNED OF THE CITIZENS APPROVING THE VALUES THAT WE THROWN OUT THERE.

HAVING ADDITIONAL PRODUCTS THAT DON'T GET THEIR VOICE, IT MAY NOT BE THE BEST APPROACH, RIGHT. SO IF WE ARE GOING TO DO THE BOND, I WOULD SUGGEST TO PAY CASH FOR IMPROVEMENTS.

>> THERE ARE ALWAYS PROJECTS. A LONG LIST.

>> THIS ONE -- CORRECT ME IF I'M WRONG, THIS $2 MILLION IS TIED

TO ADDITIONAL $20 MILLION? >>ROBERT HANNA: WE ARE

LEVERAGING $20 MILLION. >> THE OWE POTENTIAL BOND PACKAGES, THOSE -- THEY DIDN'T APPROVE THE GD, THE REC CENTERS, WE CAN GO IN AND VIES WITH DO WE LOSE THAT $2 MILLION OR GO BACK

AND TRY TO GET IT AGAIN. >>ROBERT HANNA: WE HAVE THE BUY EN NUMB TO MATCH. WE HAVE WHAT NEEDS TO COMPLETE THE PROJECT. UP WOULD HURRICANE WATCH RATHER KNOW I HAVE A BIRD IN HAND AND HAVE THAT $2 MILLION EAR MARKED FOR THAT GRANT MATCH THAN TO RISK $20 MILLION AND A BOND ELECTION. AND TO THAT POINT, IF WE DID THIS -- MY SLIDE ALWAYS CONTEMPLATING SIR I HAVE IT CAT

[02:30:01]

>> MY PREFERENCE, IF WE HAVE THE CASH, PAY IN CASH AND SAVE THE

$972,000 OR SO IN INTEREST. >>MAYOR HURT: ANY OTHER

DISCUSSION ON THAT? >> THAT IS MY PURPOSE AS WELL.

ANY MORE QUESTIONS? APPRECIATE EVERYONE.

[3. Ordinance (Consider on First Reading): Receive a Report, Hold a Discussion and Public Hearing, and Take Action on Approving the Revised 2022-2023 Budget]

SO WE WILL NOW MOVE TO ITEM 3. I AM JUST GOING BY SCRIPT HERE.

WE WILL NOW CONSIDER ON FIRST READING THE ORDINANCE APPROVING THE REVISED 2022, 2023 BUDGET. AT THIS TIME, I WILL OPEN UP THE PUBLIC HEARING. ANYONE WHO WOULD LIKE TO SPEAK FOR OR AGAINST THIS ITEM. PLEASE COME FORWARD AND GIVE YOUR NAME FOR THE RECORD. SEEING NO ONE.

I WILL CLOSE THE PUBLIC COMMENT PERIOD.

SOUTH FLORIDA ANY FURTHER DISCUSSION.

IF NOT, I WILL ACCEPT THE MOTION AND CAN THIS BE A REGULAR MOTION

AT THIS TIME. >> SO MOVED.

>> I HAVE A MOTION BY COUNCILMAN MCALISTER.

SECOND BY COUNCILMAN REGAN. >>KYLE MCALISTER: YES KRAFRZ

KRAFRZ YES. >>SHANE PRICE: YES.

>>LYNN BEARD: YES. >>BLAISE REGAN: YES.

[4. Ordinance (Consider on First Reading): Receive a Report, Hold a Discussion and Public Hearing, and Take Action on Approving the Proposed 2023-2024 Budget]

>>BRIAN YATES: YES. >>WELDON HURT: YES.

>> MOTION CARRIED. >>MAYOR HURT: MOTION CARRIES, ITEM 4. WE NOW CONSIDER ON THE FIRST READING OF THE ORDINANCE APPROVING THE PROPOSED 2023, 2024 BUDGET. AT THIS TIME, I WILL OPEN UP THE PUBLIC HEARING. ANYONE WHO WOULD LIKE TO SPEAK EITHER FOR OR AGAINST THIS ITEM. PLEASE COME FORWARD AND GIVE YOUR NAME FOR THE RECORD. SEEING NO ONE, I WILL CLOSE THE PUBLIC HEARING. IS THERE ANY FURTHER DISCUSSION?

IF NOT, I WILL ACCEPT A MOTION. >> SO MOVED.

>> I HAVE A MOTION BY COUNCILMAN MCALISTER.

A SECOND BY COUNCILMAN CRAVER. ANY FURTHER DISCUSSION.

>> THIS ONE HAS NO SPECIAL LANGUAGE.

>> NOT UNTIL THE ADOPTION. >>MAYOR HURT: MOVE IT ON TO THE NEXT MEETING. ANY OTHER DISCUSSION?

>> ANY POTENTIAL CONFLICTS WE CAN THEN DEAL WITH IT.

>> THAT'S CORRECT. >>KYLE MCALISTER: YES.

>> COUNCIL MEMBER CRAVER: YES. >>SHANE PRICE: YES.

>>LYNN BEARD: YES. >>BLAISE REGAN: YES.

[5. Ordinance (Consider on First Reading): Receive a Report, Hold a Discussion and Public Hearing, and Take Action on Setting the Tax Levy]

>>WELDON HURT: YES. >>CLERK: MOTION CARRIES.

>> MOVE TO ITEM 5, AND CONSIDER THE FIRST READING OF THE ORDINANCE CONSIDERING THE TAX LEVY.

I WILL OPEN UP THE PUBLIC HEARING.

ANYONE WHO WOULD LIKE TO SPEAK FOR OR AGAINST THE ITEM.

GIVE YOUR NAME FOR THE RECORD. SEEING NO ONE, I WILL CLOSE THE PUBLIC HEARING. DO WE NEED THAT AMOUNT STATED OR JUST THE -- OKAY. IF THERE IS ANY -- NO DISCUSSION, I WILL ACCEPT A MOTION ON THIS.

>> SO MOVED. >> A MOTION BY MAYOR PRO TEM PRICE. SECOND BY DEPUTY PRO TEM BEARD.

ANY FURTHER DISCUSSION? WE ARE READY TO VOTE.

>>SHANE PRICE: YES. >>LYNN BEARD: YES.

>>BLAISE REGAN: YES. >>BRIAN YATES: YES.

[6. Ordinance (Consider on First Reading): Receive a Report, Hold a Discussion and Public Hearing, and Take Action on Adopting Fees and Charges for FY 2023-2024]

>>KYLE MCALISTER: YES. >> COUNCILMAN CRAVER: YES.

>>WELDON HURT: YES. NOW ITEM NUMBER 6.

ORDINANCE APPROVING THE PROPOSED FY 2023-2024 GUYS AND CHARGES. I WILL OPEN UP THE PUBLIC HEARING. ANYONE TO SPEAK FOR OR AGAINST THIS ITEM, COME FORWARD AND GIVE YOUR NAME FOR THE RECORD.

SEEING NO ONE, I WILL CLOSE THE PUBLIC HEARING.

NO DISCUSSION, I WILL ACCEPT A MOTION AND A SECOND.

>> SO MOVED. >> A MOTION BY COUNCILMEMBER MCALISTER. A SECOND BY COUNCILMAN YATES.

ANY FURTHER DISCUSSION? >>KYLE MCALISTER: YES.

>> COUNCILMEMBER CRAVER: YES. >>SHANE PRICE: YES.

>>LYNN BEARD: YES. >>BLAISE REGAN: YES.

>>BRIAN YATES: YES. >>WELDON HURT: YES.

>>CLERK: MOTION CARRIES. >>MAYOR HURT: JUST TO CLARIFY, THERE WILL BE NO MORE BUDGET DISCUSSION TUESDAY OR WEDNESDAY,

CORRECT? >> CORRECT.

>>MAYOR HURT: JUST TO CLARIFY THAT.

AT THIS TIME, IT IS NOW 12:08 P.M. HAND THIS MEETING

* This transcript was compiled from uncorrected Closed Captioning.