Aug 24, 2026 City Council Budget Workshop

[ CALL TO ORDER]

[00:00:04]

THE ABILENE CITY COUNCIL TO ORDER.

I WILL ASK BENJAMIN BAILEY TO LEAD THE INVOCATION AND PLEDGES.

>> ASK YOU TO CONTINUE TO BLESS THE CITY AND PRAY FOR WISDOM FOR THE COUNCIL TO CONTINUE TO LEAD. THANK YOU LORD FOR ALL THE MANY BLESSINGS YOU HAVE GIVEN US AND IN PRECIOUS NAME WE PRAY.

AMEN. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION UNDER GOD INDIVISIBLE FOR LIBERTY AND JUSTICE FOR ALL. HONOR THE TEXAS FLAG AND PLEDGE ALLEGIANCE TO TEXAS ONE STATE UNDER GOD AND ONE INDIVISIBLE.

>> GOOD MORNING. IT IS THAT FUN TIME OF THE YEAR WHEN WE ACTUALLY EARN THAT DOLLAR, I'M EXCITED ABOUT TODAY'S CONVERSATIONS. WE HAVE TWO NEW COUNCIL MEMBERS.

REALLY LOOKING FORWARD TO THEIR INPUT ON HOW THIS PROCESS WORKS.

JUST WANT TO SEND A TREMENDOUS THANK YOU OUT TO STAFF.

I KNOW THIS IS A HARD TIME OF YEAR.

ALL THE HARD WORK THAT YOU HAVE ALL PUT IN.

WE APPRECIATE ALL THE TIME AND EFFORT THAT YOU HAVE DONE.

BUT ULTIMATELY COUNCIL, THIS IS OUR BUDGET TO APPROVE.

IT'S THE ONE THAT WE PUT OUR NAME ON AND THE ONE THAT WE HAVE TO LIVE WITH. WITH THAT, I WILL TURN IT OVER

TO CITY MANAGER EMILY CRAWFORD. >> MAYOR, ARE YOU GOING TO WANT

TO TAKE PUBLIC COMMENTS FIRST? >> EXCUSE ME.

SAID YOU WOULD GO OVER THE AGENDA FOR THE DAY.

[ PUBLIC COMMENTS]

I WILL DO PUBLIC COMMENT. >> OKAY.

>> AT THIS TIME WE'LL MOVE TO PUBLIC COMMENT.

THERE WILL BE NO FORMAL ACTIONS TAKEN OR SUBJECTS PRESENTED DURING PUBLIC COMMENT. THE PUBLIC COMMENT PERIOD WILL ALLOW ONLY MEMBERS OF THE PUBLIC TO PRESENT IDEAS AND INFORMATION PLEASE COME FORWARD AND STATE YOUR NAME AND THE CITY YOU RESIDE IN. ARE THERE ANY CARDS?

>> NO CARDS. >> THERE WILL BE A THREE-MINUTE

LIMIT. >> GOOD MORNING MAYOR AND COUNCIL. RESIDENT OF ABILENE.

I THINK I'VE BEEN SHARING SINCE -- FOR SEVERAL MONTHS SOME OF THE PRIORITIES WE NEED TO HAVE AS A CITY.

I WILL JUST POINT OUT THAT LAST YEAR WE HAD -- AT SOME POINT ALONG THE LINE WE HAD A QR CODE WHERE THE PUBLIC COULD SCAN IT AND BE ABLE TO FOLLOW ALONG WITH THE SLIDES.

AND THAT'S REALLY HELPFUL, BECAUSE THE THING IS Y'ALL POST THE AGENDA BUT NEVER POST THE SLIDES.

I WILL PIR, PUBLIC INFORMATION REQUESTS, THE SLIDES AFTER THE MEETING, NICE IF THEY WERE INCLUDED IN THE AL AGENDA SO THT THE PUBLIC COULD LOOK AT THEM AND SEE THEM.

SOMETIMES WHEN SPEAKING, THE SLIDES AREN'T SHOWN.

SOMETIMES WHEN NOT SPEAKING THE SLIDES DON'T GET SHOWN.

IT'S HARD TO FOLLOW ALONG WITH THE SMALL NUMBERS IN THE ROOM.

ANOTHER THING COULD BE DONE. BUT NOT DONE.

I'M NOT SURE WHY THE DECISION WAS MADE TO NOT DO IT.

I THINK IT'S GOOD THAT WE ACTUALLY TALKED ABOUT THE NO NEW REVENUE RATE IN THE AGENDA BECAUSE THAT'S IMPORTANT TO TALK ABOUT BEFOREHAND AND I KNOW THAT WE HAVE A FABULOUS COMMUNICATIONS TEAM WHO COULD PRESENT SOME GENERAL CONCEPTS AND IDEAS OF WHAT'S GOING TO BE HAPPENING TODAY BEFORE TODAY SO THAT THE PUBLIC CAN BEGIN TO HAVE CONVERSATIONS WITH YOU GUYS ABOUT WHAT THEIR PRIORITIES ARE AND WHAT OUR PRIORITIES ARE IN TERMS OF WHAT THIS BUDGET LOOKS LIKE.

BUT I THINK THIS PREMISE OF ALWAYS INCREASING THE BUDGET EVERY YEAR IS PROBLEMATIC BECAUSE I KNOW THAT I DON'T GET TO ASSUME THAT I WILL GET A PAY RAISE EVERY YEAR.

I GUESS I DON'T REALLY GET A SALARY.

MAYBE MY HUSBAND'S PRIVATE BUSINESS GETS A PAY RAISE EVERY YEAR. WE HAVE TO WORK HARD FOR IT AND MAKE BUDGET CUTS AND PREPARE. NEVER IN THE THREE YEARS, THIS WILL BE THE FOURTH IN PERSON WORKSHOP SEEING WHAT WE CUT FROM THE BUDGET. BASED ON THE LACK OF ATTENTION TO WHAT I'M SAYING RIGHT NOW, IT FEELS FRUSTRATING YOU CAN'T PAY ATTENTION TO ME FOR THE TWO MINUTES I'VE BEEN TALKING.

THAT'S VERY COMMON. I CALLED IT OUT.

IT IS THE WAY THINGS WORK. I'M WORKING TO CHANGE IT.

I DO SEE SOME PROGRESS HAPPENING.

THANK YOU FOR THE CITIZENS PAYING ATTENTION AND USING THEIR VOICES IN A POSITIVE WAY TO MAKE SURE THAT OUR GOVERNMENT IS RUN BY ELECTED OFFICIALS THE WAY WE WANT TO DO IT.

THANK YOU. >> IS THE QR CODE POSTED?

THE QR CODE IS POSTED OUT FRONT. >> IT'S FOR THE PROPOSED BUDGET,

NOT THE SLIDES. >> OKAY.

>> MAYOR, WE WILL BE POSTING THE SLIDES.

WE FINISHED THOSE AT 5:00 ON FRIDAY.

WE WILL POST THOSE PRESENTATION SLIDES AND WE WILL MAKE A COPY FOR YOU AS WELL AND ANYONE ELSE IN THE AUDIENCE THAT WOULD LIKE

IT. >> DIGITAL COPY WOULD BE

AWESOME. >> THANK YOU FOR THE COMMENTS.

DURING THE PUBLIC COMMENT PERIOD, WOULD ANYONE ELSE LIKE TO SPEAK AT THIS TIME? SEEING NO ONE, I WILL CLOSE THE

[2. Presentation: Revised FY 2026 and Proposed FY 2027 Budgets and Complete Budget Review]

[00:05:09]

>> GOOD MORNING MAYOR AND COUNCIL.

WELCOME TO OUR 2027 BUDGET WORKSHOP.

I WOULD LIKE TO INTRODUCE THIS WORKSHOP TO YOU WITH SOME OPENING COMMENTS AND THEN I WILL TAKE ON THE INTRODUCTORY PART OF THE PRESENTATION AND PASS IT OFF TO STAFF FOR THEIR SPECIFIC PORTIONS. THE AIM OF TODAY'S BUDGET AND EXPLAIN THE PROPOSED 2027 BUDGET.

THIS IS NOT THE START OF OUR BUDGET EFFORTS.

THE COUNCIL AND STAFF OFFICIALLY BEGAN THAT PROCESS ON FEBRUARY 5TH DURING OUR COUNCIL'S STRATEGIC PLANNING RETREAT. AT THAT MEETING COUNCIL AND STAFF WORKED TOGETHER TO ESTABLISH SHORT AND LONG-TERM GOALS FOR THE CITY. THE RETREAT CONCLUDED WITH DEFINING CLEAR COUNCIL PRIORITIES, COMMUNITY ENGAGEMENT, SUSTAINABLE GROWTH, HOUSING, INFRASTRUCTURE, AND ORGANIZATIONAL EXCELLENCE. THE STRATEGIC PRIORITIES HAVE DIRECTED OUR FISCAL AND SERVICE DELIVERY DECISIONS THAT YOU WILL SEE PRESENTED IN THE PROPOSED BUDGET.

THEN ON MAY THE 20TH, WE HELD A PREBUDGET WORKSHOP TO DISCUSS OUR FISCAL PHILOSOPHY FOR THE NEXT FEW BUDGET CYCLES.

WE PRESENTED A FUNDING MODEL DESIGNATED TO ADDRESS CURRENT ECONOMIC CONDITIONS SPECIFICALLY THE SHORT-TERM SURPLUS SALES AND PROPERTY TAXES. WE INTRODUCED THE PLAN TO USE NEW REVENUE GENERATED BY THE DATA CENTER PROJECTS TO REINVEST THEM INTO THE COMMUNITY AND FUND CAPITAL IMPROVEMENTS REQUESTED BY OUR RESIDENTS. WE AGAIN HIGHLIGHTED THE FIVE COUNCIL PRIORITIES AND REPRESENTED THEM TO YOU VISUALLY AS BUCKETS THAT NEEDED RESOURCES.

AND TODAY MARKS ANOTHER STEP IN THIS SEVEN-MONTH PROCESS WHICH HAS BEEN OPENLY DISCUSSED WITH CITIZEN AND COUNCIL INPUT AT EVERY STAGE. BUDGET IS NOT JUST A FINANCIAL DOCUMENT. IT SERVES AS A PURPOSEFUL ROAD MAP GUIDING THE CITY OF ABILENE TOWARDS ACHIEVING OUR MISSION TO WORK TOGETHER TO BUILD AND MAINTAIN A COMMUNITY OF THE HIGHEST QUALITY FOR PRESENT AND FUTURE GENERATIONS.

JUST LIKE IN THE FAMILIES, WHAT WE VALUE, WE PROTECT AND PROVIDE FOR. THE BUDGET ILLUSTRATES THE CITY VALUES LIKE PUBLIC SAFETY, PUBLIC FACILITIES, PUBLIC SERVICES AND PUBLIC SERVANTS. IT SHOWS HOW WE WILL PROTECT AND PROVIDE FOR THE FRIENDS AND NEIGHBORS IN THIS SPECIAL CITY OF ABILENE. BEFORE YOU TODAY IS THE CITY MANAGER'S PROPOSED BUDGET. HOWEVER, IT WAS THE WORK OF DOZENS AND DOZENS OF STAFF MEMBERS.

I WANT TO RECOGNIZE OUR BUDGET TEAM WHICH INCLUDES ALL OF THE CITY MANAGEMENT TEAM, THE FINANCE LEADERSHIP TEAM, MARJORIE, KRISTEN AND MICHAEL AND EVERY SINGLE DEPARTMENT DIRECTOR AND CITY MANAGER AND BEYOND.

THIS WAS NOT A BUDGET MADE IN A VACUUM.

WE LOOKED AT HOW THIS BUDGET WOULD AFFECT EVEN ALL THE WAY TO THE FRONT LINES. I AM VERY PROUD OF THE WORK THAT OUR TEAM HAS DONE TO INVEST IN THIS 2027 BUDGET.

I AM VERY THANKFUL FOR THE DIRECTION THAT COUNCIL HAS GIVEN US THROUGHOUT THIS PROCESS SO THAT WE COULD RESPOND AND PRESENT TO YOU WHAT WE BELIEVE YOU HAVE ASKED FOR.

WE ARE HAPPY TO SHARE IT WITH YOU TODAY AND READY TO HAVE THIS DIALOG. SO WHAT WE WILL DO FIRST IS WE WILL PRESENT THE BUDGET TO YOU THROUGH THE PRESENTATION SLIDES, WE ALSO HAVE PROVIDED YOU THE ACTUAL PROPOSED BUDGET DOCUMENT THAT WE MAY BE REFERRING TO AS WELL.

AND THEN AFTER THE FULL BUDGET PRESENTATION AND ALL DISCUSSION BY COUNCIL, THEN IF THE COUNCIL DOES NOT REQUEST ANY SIGNIFICANT CHANGES, WE WILL MOVE THROUGH THOSE APPROVAL PROCESSES WHICH YOU SEE ON THE AGENDA. HOWEVER, I WANT TO REINFORCE WHAT MAYOR HURT SAID AT THE BEGINNING, AS OF NOW, THIS TRANSITIONS FROM A CITY MANAGER PROPOSED BUDGET TO A COUNCIL BUDGET. SO ANY REQUEST OR CHANGES OR ADDITIONS OR EXCLUSIONS, WE WILL BE MAKING EITHER TODAY OR OVER THE COURSE OF THE DAY. WE ALSO HAVE TOMORROW RESERVED FOR BUDGET MEETING SHOULD WE NEED TO DO THAT.

SO THE PURPOSE OF TODAY'S DISCUSSION, WE ARE PRESENTING YOU NOT ONLY THE '27 PROPOSED BUDGET BUT ALSO THE 2026 REVISED BUDGET. AND THOSE SIGNIFICANT CHANGES THAT WERE MADE SINCE APPROVED ORIGINALLY.

WE'RE GOING TO CONNECT THE BUDGET RECOMMENDATION TO CITY COUNCIL PRIORITIES, WHICH YOU HAVE CLEARLY GIVEN TO US THROUGH THE COUNCIL RETREAT. WE ARE GOING TO EXPLAIN THE FINANCIAL ASSUMPTIONS AND POLICY CONSIDERATIONS THAT SHAPED THE PROPOSED BUDGET, WE ARE GOING TO REVIEW THE PROPOSED PROPERTY TAX RATE, FEE ADJUSTMENTS AND MAJOR ONE-TIME INVESTMENTS AND AGAIN RECEIVE YOUR COUNCIL DIRECTION, INPUT AND CHANGES BEFORE THE BUDGET IS FINALIZED FOR ADOPTION.

[00:10:02]

THIS IS JUST A REMINDER OF WHAT I HAD ALREADY DISCUSSED IN REGARDS TO OUR PROCESS, WE HAD THE PREBUDGET WORKSHOP MAY 20TH.

THE PROPOSED BUDGET WAS FILED ON JULY 31ST.

WE ARE HAVING OUR BUDGET WORKSHOPS AND FIRST READINGS TODAY AND POSSIBLY TOMORROW. OUR SECOND READINGS PUBLIC HEARING AND ADOPTION WILL OCCUR ON SEPTEMBER 10TH AND FISCAL YEAR BEGINS OCTOBER 1ST. SO LET'S GO BACK IN TIME TO THE PREBUDGET WORKSHOP ON MAY THE 20TH.

THESE WERE THE KEY CONCEPTS THAT WE LEFT THAT MEETING WITH.

AND THAT IS THAT AS WE ALL KNOW, ABILENE IS EXPERIENCING SIGNIFICANT ECONOMIC GROWTH AND INCREASING SERVICE DEMANDS.

THE CITY'S TAX BASE IS BECOMING MORE DEPENDENT ON BUSINESS PERSONAL PROPERTY, THAT'S THE BPP WE WILL BE TALKING MORE ABOUT IN DETAIL. DUE TO THE DATA CENTER INDUSTRY AND THE CHANGE IN WHICH THOSE NEW TYPES OF VALUES ARE COMING ON. SALES TAX AND PROPERTY TAX REVENUES ARE BOTH TEMPORARY AND LASTING AND WE ARE WORKING TO DETERMINE HOW MUCH TO DEPEND ON AS RECURRING VERSUS THOSE THAT ARE ONE-TIME. AS FAR AS ONE-TIME REVENUES ARE CONCERNED, WE ARE NOT COMMITTING ONE-TIME REVENUES TO PERMANENT OPERATING COSTS SO THAT AS THOSE ONE-TIME REVENUES DECREASE, WE ARE NOT HAVING TO REMOVE THOSE REVENUES FROM THE BUDGET.

WE ARE CREATING A BUDGET THAT HAS LONG-TERM FINANCIAL FLEXIBILITY WHICH IS ESPECIALLY IMPORTANT BECAUSE THIS DATA CENTRE VALUES AND THE REVENUE PATTERNS CONTINUE TO EVOLVE AS WELL AS POTENTIAL LEGISLATION RELATED TO SUCH.

SO OUR KEY TAKE AWAY IS THAT WE ARE USING THE OPPORTUNITY TO HAVE ADDITIONAL REVENUES IN THE SHORT-TERM TO STRENGTHEN OUR LONG-TERM POSITION AND NOT CREATE COMMITMENTS THAT WE CANNOT SUSTAIN. NOW, THERE HAS BEEN SOME THINGS CHANGED SINCE THE MAY 20TH BUDGET -- PREBUDGET WORK SHOP.

WE HAVE RECEIVED THE CERTIFIED TAX VALUES.

THE CERTIFIED NET TAXABLE VALUE INCREASED 10.839 BILLION FROM LAST YEAR TO 13.27 BILLION WHICH IS AN INCREDIBLE 22% INCREASE.

NEW TAXABLE PROPERTY ADDED TO THE TAX ROLLS IS APPROXIMATELY 2.29 BILLION. ALMOST ALL OF THAT INCREASE IN VALUE WAS BASED ON NEW TAXABLE PROPERTY.

THE 2026 SALES TAX IS PROJECTED AT APPROXIMATELY 67.939 MILLION.

THIS IS WHAT WE'RE TALKING ABOUT IN THE REVISED BUDGET WE'RE PRESENTING TO YOU AND THAT WAS ABOVE 48.93 MILLION.

WE HAD TIME TO HAVE ADDITIONAL RESEARCH AND INVESTIGATION TO PROVIDE GREATER CONFIDENCE IN ITEMS SUCH AS THE BPP, HOW THAT WILL BE REFLECTED OVER THE FUTURE BUDGETS, AND HAVE, I BELIEVE, MORE CONFIDENCE AND SECURITY IN WHAT WE'RE RECOMMENDING TODAY NOW THAT WE HAD MORE TIME TO DO RESEARCH.

THE VOTER APPROVAL RATE HAS ESTABLISHED THE UPPER LIMIT FOR THE PROPOSED TAX RATE AND WE ARE RECOMMENDING TAX RATE THAT IS BELOW THE VA R. UPDATED THE TAX RATE CALCULATIONS BASED UPON THE '26 CO DEBT SERVICE FOR THE AIRPORT THAT WE RECENTLY ISSUED AND AFFECTS THE INS RATE.

THE BUDGET REMAINS CONSERVATIVE AND PROVIDES CAPACITY TO RESTORE CORE SERVICES AND ADDRESS COUNCIL PRIORITIES.

THIS IS THE FRAMEWORK BY WHICH WE ESTABLISHED OUR PRIORITIES FOR MAKING DECISIONS IN THE BUDGET.

RESTORE, PLAN, AND BUILD ON OUR COMMITMENTS.

AND THIS IS THE ORDER IN WHICH WE ADDRESS THEM.

FIRST OF ALL IS RESTORE. THE ECONOMIC DOWNTURN IN 2024 RESULTED IN MULTIPLE FROZEN POSITIONS AND DEFERRED MAINTENANCE. RESTORATION IS CRITICAL BEFORE WE ADD NEW SERVICES OR EXPANDED SERVICES.

OUR FIRST BLUSH WE WERE LOOKING AT EVERYTHING THROUGH THE LENS OF RESTORE. WHAT DO WE NEED TO DO TO RESTORE OUR FOUNDATION AND DELIVERY SERVICE MODELS.

SECOND WAS PLAN. THIS IS PRIMARILY RELATED TO INFRASTRUCTURE, FACILITIES, AND OUR NEW CIP CREATION.

WE NEED TO ENSURE THAT OUR INVESTMENTS ARE PROPERLY ORDERED AND THAT THE LONG-TERM MAINTENANCE AND FINANCIAL COMMITMENTS ARE FULLY UNDERSTOOD.

AND THEN THIRD BUILD ON OUR COMMITMENTS.

WE HAVE CONTINUED -- WE HAVE HAD COMMITMENTS THAT WE HAVE MADE TO THE PUBLIC THROUGH THE BOND APPROVALS OF THE ZOO, THE REC CENTERS AND THE AIRPORT. WE ALSO HAVE COMMITMENTS TO THE

[00:15:03]

ALL OF THESE THINGS WE ARE BUILDING UPON THAT WHICH THE COMMUNITY HAS ALREADY ASKED US TO DO.

THIS IS FROM OUR PREBUDGET WORKSHOP.

WE HAD DISCUSSED THESE ITEMS IN VERY SPECIFIC WAYS AND I'M GOING TO REMIND THEM OF YOU SO YOU KNOW WE HAVE CONNECTED THOSE CONCEPTS FROM THE PREBUNCH WORKSHOP FROM THE PROPOSED BUDGET. EVALUATE AND RESTORE KEY POSITIONS THAT WE HAVE AND SEVEN IN THE BUDGET.

COMPETITIVE NONCIVIL SERVICE COMPENSATION PROGRESS, WE ARE RECOMMENDING AN ADJUSTMENT THAT WILL GO INTO DETAIL FOR NONCIVIL SERVICE PAY. RESTORE THE FLEET AND APPARATUS FUNDING. THIS IS AGAIN RESTORING FUNDING THAT WE HAD TAKEN FROM PRIOR BUDGETS IN ORDER TO MAKE THE BUDGET BALANCE. AND THEN HEALTH PLAN FUNDING NEEDED RESTORATION AS WELL AS IT CONTINUED TO BE DEPLETED.

UNDER PLAN, WE ARE RECOMMENDING 7.5 MILLION IN ONE-TIME CAPITAL INVESTMENT THAT WILL BE TRANSFERRED TO THE MIP, A LARGE PORTION OF THAT WILL BE FOR STREET MAINTENANCE.

WE HAVE DEFERRED A PLAN FOR DEFERRED FACILITY MAINTENANCE AND THAT WILL BE THROUGH A FACILITY CONDITION ASSESSMENT.

WE HAVE A COMPENSATION STUDY THAT YOU APPROVED IN THE LAST COUNCIL MEETING THAT WILL ADDRESS MARKET COMPENSATION FOR THE FUTURE FOR CIVIL AND NONCIVIL SERVICE AND CONTINUE DEVELOPMENT OF LONG-TERM CAPITAL PLANNING SUCH AS THE PAVEMENT CONDITION INDEX FOR OUR ROADS. THIS IS THE COUNCIL PRIORITIES GRAPHIC THAT WE SHOWED YOU AND WANT TO REMIND YOU THIS IS HOW WE'RE VISUALLY REPRESENTING WITH THE ICONS.

EACH OF THE COUNCIL PRIORITIES. AS YOU CAN SEE SOME OF THESE BUCKETS ARE LARGER THAN OTHERS. SO WHAT WE HAVE DONE IS EMPHASIZED THE BUD BUCKETS THATD MORE ATTENTION SUCH AS SUSTAINABLE GROWTH AND INFRASTRUCTURE IN OUR BUDGET PRIORITIES. WE'LL GO OVER EACH ONE OF THE BUDGET PRIORITIES AND BRIEFLY MENTION THE ITEMS AS THEY WILL BE DISCUSSED IN DETAIL IN THE FOLLOWING PORTION OF OUR PRESENTATION. FOR COMMUNITY ENGAGEMENT, THIS BUDGET EXPANDS OPPORTUNITIES FOR RESIDENTS TO ACCESS THE CITY SERVICES, WHICH INCLUDES OUR NEW REC CENTERS AND LIBRARIES AS WELL AS ADDITIONAL INTERACTION WITH CITY STAFF.

SO WE ARE RECOMMENDING EXPANDING THE HOURS OF OUR REC CENTERS AND REC CENTER LIBRARIES TO ACCOMMODATE FOR ALLOWING CONTINUED COMMUNITY SERVICES AND COMMUNITY ENGAGEMENT WITH THOSE PARTICULAR SERVICES. WE HAVE ADDED A STAFF MEMBER POSITION AND ADDITIONAL PROGRAM FUNDING IN THE MARKETING DEPARTMENT -- I'M SORRY IN THE COMMUNICATION AND MARKETING DEPARTMENT TO SPECIFICALLY HONE IN ON DIRECT EMPLOYEE -- I'M SORRY, CITIZEN ENGAGEMENT. THIS IS NOT JUST ONE-WAY DIGITAL COMMUNICATION, THIS IS COMMUNITY INTERACTION THAT CAN BE PERSONAL AND SPECIFIC. THIS INCLUDES THE ABILENE CITIZENS ACADEMY AND POP UP CITY HALLS AROUND THE COMMUNITY.

AS WELL AS LET'S TALK LUNCH AND LEARNS WHERE WE'RE PROVIDING OPPORTUNITIES FOR THE CITIZENS TO ENGAGE DIRECTLY WITH THE CITY IF THEY'RE NOT ABLE TO MAKE THE TYPE OF COMMITMENT OF THE CITIZENS ACADEMY. PUBLIC HEALTH SERVICES, WE ARE ADDING AN ADDITIONAL FRONT DESK PERSON, AGAIN, FOR THE COMMUNITY ENGAGEMENT THE PERSONAL INTERACTION AS WE CONTINUE TO MEET THE NEEDS OF OUR COMMUNITY. IN SUSTAINABLE GROWTH, WE HAVE A SIGNIFICANT AMOUNT OF RESOURCES GOING TO PUBLIC SAFETY.

ONE OF WHICH IS FUNDING THREE NEW POLICE OFFICER POSITIONS.

WE HAVE $13.5 MILLION CONTRIBUTION TO THE FIRE PENSION FUND. WE ARE RECOMMENDING CRITICAL MAINTENANCE AND REPAIR ITEMS TO THE CONVENTION CENTER, THIS IS THROUGH THE -- UPDATING SANITARY SEWER AND BROKEN KITCHEN EQUIPMENT. THIS IS THROUGH OCCUPANCY TAX FUNDS AND NOT THE GENERAL FUND. WE HAVE SEVERAL PARKS AND REC IMPROVEMENTS WE ARE RECOMMENDING WITH PLAYGROUNDS, PARK SYSTEM AMENITIES, AND THINGS EVEN SUCH AS TRASH CANS AND PARK BENCHES, THE THINGS THAT PEOPLE USE ON THE DAILY BASIS.

THEN OF COURSE THE EXPANSION OF THE ZOO, ADDING THE POSITIONS TO MAKE SURE THAT AS WE OPEN THAT NEW ZOO EXPANSION, WE HAVE THE STAFFING TO ACCOMMODATE THAT. AND THEN HOUSING.

WE HAVE MOVED THE REBUILD ABI $1 MILLION OUT OF THE MAP AND PLACED IT WITHIN THE OPERATIONAL BUDGET.

THE REASON WE DID THAT SO IT WOULDN'T BE DEPENDENT ON EXCESS REVENUES AT THE END OF THE YEAR TO FUND.

THIS IS AN IMPORTANT PROGRAM FOR THE COMMUNITY.

BY PUTTING IT IN THE OPERATING BUDGET, WE ARE MAKING SURE IT IS SUSTAINED. WE HAVE ALSO INCREASED THE FUNDING FOR DEMOLITIONS. THE REASON FOR THAT IS WE HAVE CONTINUED NEIGHBORHOODS THAT WE ARE WANTING TO EXPEDITE THE REMOVAL OF THOSE HOMES THAT PROVIDE A SAFETY HAZARD TO THE

[00:20:03]

WE ARE GOING TO CONTINUE TO DEPEND ON THIRD PARTY INSPECTION SERVICES BECAUSE OF THE VOLUME OF INSPECTIONS AND PERMITTING THAT WE ARE DEALING WITH RIGHT NOW.

WE WANT TO MAKE SURE THAT WE ARE EXPEDITING AND TURNING THOSE AROUND QUICKLY SO WE DON'T SLOW DOWN DEVELOPMENT.

AGAIN, CONTINUE THE STREAMLINE DEVELOPMENT PROCESS REVIEW.

NOT ON THIS LIST IS WHAT WE HAVE ALREADY DONE WHICH IS THE MULTI-FAMILY ZONING MAP, AND THAT WAS A VERY LOW COST.

BUT HIGH RETURN ITEM THAT WE HAVE ALREADY DONE AND IT IS CREATING A GREAT SENSE OF DEVELOPER ENGAGEMENT WITH THE CITY AND A STREAMLINED PROCESS FOR MULTI-FAMILY DEVELOPMENT.

INFRASTRUCTURE, WE ALL KNOW THIS IS ONE OF THE VERY LARGE BUCKETS THAT NEEDS ADDITIONAL RESOURCES TO PROVIDE THE SERVICES THAT OUR RESIDENTS ARE REQUESTING. SO OF COURSE, STREET IMPROVEMENT IS A SIGNIFICANT ITEM. WE ARE RECOMMENDING 5 MILLION IN MIP TO GO TO STREET MAINTENANCE THAT IS ABOVE AND BEYOND WHAT IS PROVIDED THROUGH THE STREET MAINTENANCE FEE AND BUDGETED RESOURCES. DEFERRED FACILITY MAINTENANCE ASSESSMENT. THIS IS FOR THE FACILITIES TO HAVE COMPREHENSIVE ASSESSMENT WE CAN ALSO CREATE A DATABASE OF THE NEEDS OF OUR FACILITIES SO WE CAN SYSTEMICALLY UPDATE AND REPAIR OUR CITY FACILITIES THAT WE CAN HAVE A LONG-TERM PLAN THAT CAN ROLL INTO THE CIP AS WELL.

WE HAVE A RADIO NETWORK CORE AND DISPATCH CONSOLE REPLACEMENT.

THIS IS FOR THE PUBLIC SAFETY RELIABILITY AND CREATES A BACKUP TO THE RADIO SYSTEM. WE HAVE ADDITIONAL WATER AND WASTE WATER INFRASTRUCTURE INVESTMENTS IN THIS BUDGET AS WELL AS WE CONTINUE TO HAVE GROWTH THROUGHOUT OUR CITY.

STORM WATER INFRASTRUCTURE, THIS IS GOING TO BE PROVIDING FUNDS FOR ACTUAL CAPITAL INVESTMENTS INTO STORM WATER REMEDIATION.

AND THEN FINALLY, OUR LAST BUCKET OF COUNCIL PRIORITIES IS ORGANIZATIONAL EXCELLENCE THAT IS PRIMARILY LOOKING INTERIOR INTO THE CITY OF ABILENE'S ORGANIZATION.

THIS INCLUDES THE COMPENSATION WHICH AS I MENTIONED THE COMPENSATION STUDY THAT IS GOING TO BE TAKING PLACE CURRENTLY THAT WE WILL BE ABLE TO LOOK AT WHERE THE CITY IS RANKED IN MARKET COMPENSATION, NOT JUST FOR CIVIL SERVICE BUT NONCIVIL SERVICE AS WELL. WE HAVE CONTINUED THE PUBLIC SAFETY COMPENSATION BASED OFF THE MEET AND CONFIRM AGREEMENT WITH POLICE AS WELL AS ORDINANCE WE WILL PRESENT TO YOU TODAY TO CONTINUE COMPENSATION INCREASES FOR FIRE AS WELL.

OUR HEALTH CARE, THE CITY IS CONTRIBUTING TO THE NEEDS FOR THE HEALTH CARE. WE ARE CHOOSING TO RECOMMEND THAT IT BE ENTIRELY FUNDED BY THE CITY, THE INCREASE THAT IS NEEDED SO THAT THE PAY RAISES ARE NOT EATEN UP BY ADDITIONAL CONTRIBUTIONS BY THE EMPLOYEES. WE ARE ALSO TAKING THE YEAR TO CREATE A NEW HEALTH CARE STRATEGY THAT WILL IDEALLY LEAD TO LOWER CONTRIBUTIONS AND HIGHER SERVICES.

WE ALSO HAVE A SIGNIFICANT CADRNS PROJECT THAT IS UNDER WAY. THIS IS COMPLETELY REPLACING THE EXISTING CADRNS SYSTEM AND SIGNIFICANT INVESTMENT IN PUBLIC SAFETY. WE ARE CURRENTLY UNDERGOING I.T.

TRANSFORMATION PROCESS LOOKING AT THE NEEDS OF TECHNOLOGY AND THE STAFFING MODELS WE NEED TO MAINTAIN THE SERVICE LEVELS WITHIN THE I.T. DEPARTMENT THAT WILL INCLUDE IN-HOUSE AND LIKELY CONTINUE OUTSOURCING FOR THE POSITIONS WE CANNOT HIRE INTERNALLY. AND ORGANIZATIONALLY CAPACITY AND STAFFING. THIS AGAIN IS LOOKING AT THE KEY POSITIONS TO SUPPORT ADDITIONAL AS FAR AS DEMANDS THAT YOU'LL SEE WE ADDED NEW POSITIONS IN THE BUDGET.

EVERY SINGLE NEW POSITION IS DIRECTLY RELATED TO PROVIDING CITY SERVICES. SO LET'S LOOK AT THAT BRIEFLY.

SO THE STAFFING EXPANSION THAT WE ARE RECOMMENDING EACH ONE OF THESE POSITIONS IS DIRECTLY RELATED TO EXPANDED SERVICES THAT THE COMMUNITY HAS APPROVED AND/OR THE GROWTH AND EXPANDED DEMANDS IN OUR CITY. AS YOU CAN SEE, THE COMMUNITY SERVICES, WE HAVE ADDED 18 FULL-TIME EMPLOYEES.

THIS IS THREE FOR THE LIBRARY, THIS IS DIRECTLY RELATED TO THE LIBRARY HOURS OF EXPANSION IN OUR REC CENTERS AND EIGHT FOR THE ZOO THAT BY THE WAY WON'T BE HIRED UNTIL THE ZOO EXPANSION CONSTRUCTION IS COMPLETE. SOME OF THOSE POSITIONS WILL BE FUNDED BY THE ZOOLOGICAL SOCIETY.

[00:25:03]

PARKS AND RECREATION, THERE IS SEVEN ADDITIONAL EMPLOYEES, FOUR OF WHICH DIRECTLY RELATED TO THE EXPANDED SERVICES IN OUR NEW RECREATION FACILITIES. ALSO APPROVED BY THE VOTERS IN THE BOND. WE HAVE TWO NEW PARKS EMPLOYEES THAT WE ARE RECOMMENDING TO BE PRIMARILY MAINTAINING OUR CITY CEMETERY. YOU HAVE KNOWN THAT WE HAVE BEEN DISAPPOINTED WITH THE SERVICES PROVIDED IN OUR MAINTENANCE OF THAT CEMETERY THROUGH MOWING. WE ARE TAKING THAT BACK IN-HOUSE AS THAT'S BEEN ALSO A CITIZEN CONCERN THAT WE HAVE HEARD OF THE MAINTENANCE OF THE CITY CEMETERY.

WE ALSO ADDED ANOTHER PARKS AND RECREATION EMPLOYEE FOR OUR GENERAL PARKS MAINTENANCE. WE HAVE HEARD A LOT ABOUT MOWING AND MAINTENANCE. AND SO WE ARE ADDRESSING THAT THROUGH AN ADDITIONAL EMPLOYEE. IN OUR GROWTH AND ENTERPRISE OPERATIONS, AGAIN, EVERY SINGLE EMPLOYEE IS RELATED TO THE INCREASE IN DEMANDS WE ARE SEEING IN THE GROWTH OF OUR CITY. SEVEN NEW WATER EMPLOYEES ARE ALL RELATED TO OUR LAB, OUR METER TECHNICIANS AND THE ACTUAL GROWTH WE ARE HAVING TO DEAL WITH IN OUR WATER UTILITIES.

WE ARE ADDING FOUR SOLID WASTE EMPLOYEES AND AGAIN THAT'S TO ADD TRUCK ROUTES SO THAT WE'RE ABLE TO MAINTAIN OUR SERVICES ON TRASH COLLECTION FOR COMMERCIAL AND RESIDENTIAL IN A TIMELY MANNER AND THEN THE INCREASED DEMANDS AT THE AIRPORT WITH OUR NEW SERVICES IS CREATED A NEED FOR AN ADDITIONAL MAINTENANCE PERSON. FOR PUBLIC SAFETY, AS I MENTIONED, WE'RE ADDING THREE NEW POLICE OFFICERS, PUBLIC HEALTH WE HAVE A VITAL STATISTICS AND ONE GRANT SUPPORT EMPLOYEE. THE GRANT SUPPORT EMPLOYEE IS FULLY FUNDED BY THE GRANT AND ONE NEW COMMUNITY ENGAGEMENT THAT I HAD MENTIONED BEFORE. DO WANT TO NOTE THERE IS AN ASTERISK HERE ON THE NUMBER OF PART-TIME POSITIONS.

AT THE VERY LAST MINUTE ON FRIDAY, WE REALIZED WE HAD NOT INCLUDED FOUR PART-TIME POSITIONS THAT ARE RELATED TO OUR RECREATION CENTERS. THAT TOTAL VALUE FULLY FUNDED IS ABOUT 81,000. WHAT WE ARE RECOMMENDING IS THAT WE FUND THOSE POSITIONS THROUGH VACANCY SAVINGS OVER THE YEAR.

AS YOU KNOW, WE HAVE MULTIPLE VACANCIES THROUGHOUT THE YEAR AND TURNOVER, WE BELIEVE THAT THOSE VACANCIES WILL FULLY COVER THE TEMPORARY EMPLOYEES THAT WE DID MISS IN THE BUDGET AND THAT WILL BE ADDRESSED FROM THE REVISED 2027.

AND THEN RESTORING PREVIOUSLY FROZEN POSITIONS.

AGAIN, THERE WERE MULTIPLE POSITIONS THAT WERE FROZEN.

WE WANTED TO MAKE SURE WE WERE RESTORING THOSE.

THIS WAS BASED ON THE RECOMMENDATIONS OF THOSE DIRECTORS AND ASSISTANT DIRECTORS ON WHAT POSITIONS THEY NEEDED MORE. SOME OF THEM REQUESTED NEW POSITIONS OVER A FROZEN POSITION, AND SO THIS WAS, AGAIN, MADE WITH COLLABORATION OF OUR DEPARTMENTS AND WHAT THEY NEED. WE HAVE THREE PARKS MAINTENANCE WORKERS THAT WILL BE UNFROZEN, ONE LIBRARY SERVICES POSITION, AND TWO POSITIONS AT THE ZOO AND ONE ELECTRICIAN THAT WILL BE HELPFUL TO GET THE ELECTRICIAN BACK.

THIS IS ONE OF THOSE RESTORATION MATTERS.

IT DOESN'T CHANGE THE AUTHORIZED EMPLOYEE COUNT AS THEY WERE STILL AUTHORIZED POSITIONS, THEY WERE JUST FROZEN.

AND WITH THAT, I WANT TO TURN IT OVER TO JULIE HAMMER AND THEN LESLIE ANDREWS WITH LIBRARY AND REC.

ONE OF OUR DISCUSSIONS THAT WE HAD IN THE PREBUDGET WORKSHOP WAS ABOUT OUR NEW RECREATION CENTERS, THE HOURS, THE SERVICES THAT WERE PROVIDED AND YOU ALL HAD REQUESTED AN UPDATE AT THE END OF THE SUMMER ON THAT ACTIVITY AND THE NUMBERS THAT WE WERE SEEING SO THAT WHEN WE MADE THE RECOMMENDATION TO YOU ABOUT THE INCREASED HOURS, YOU WOULD HAVE SOME DATA BEHIND IT.

>> GOOD MORNING MAYOR AND COUNCIL, I'M JULIE HAMMER DIRECTOR OF LIBRARY SERVICES. I HAVE SOME UPDATES FOR YOU ON THE NEW REC CENTERS LIBRARY AND ALSO THE MAIN LIBRARY, ABILENE HERITAGE SQUARE. SOME STATS HERE FROM GB DANIELS AND SEARS BRANCH LIBRARIES AT THE RECREATION CENTERS.

WE HAD AN OPENING DAY APRIL 22ND AND THESE STATS ARE THROUGH THE END OF JULY 31ST. YOU CAN SEE THAT WE HAVE HAD A VERY GOOD LIBRARY VISITS AND THE STATISTICS HERE ARE COMPARED TO FISCAL YEAR 2025 AT MOCKING BIRD, NOT AN APPLES TO APPLES COMPAR YOU KIND OF AN IDEA SINCE WE TOOK

[00:30:03]

THAT'S ALMOST A 300% INCREASE JUST IN THAT AMOUNT OF TIME.

WE HAVE HAD 68 PROGRAMS PRESENTED AND 1798 ATTENDING PROGRAMS AT THE TWO BRANCHES. I DID A BREAK DOWN OF THE NEW LIBRARY CARD SINCE THAT WAS A BIG STATISTIC FOR US AT OUR NEW BRANCHES. YOU CAN SEE THAT WE HAD 71% OF OUR NEW CARDS WERE ADULT RESIDENTS THAT HAVE NEVER HAD A CARD BEFORE. THESE ARE ALL BRAND NEW CARDS.

SOME ADULT NONRESIDENTS AND CHILD RESIDENTS MAKE UP 245 NEW CARDS IN THIS TIME PERIOD. HERE IS A LIST OF SOME OF THE PROGRAMS THAT WE HAD AND A LOT OF THESE ARE RECURRING PROGRAMS SO STORY TIMES ARE USUALLY LIKE A WEEKLY -- REPEATED WEEKLY ON THE PARTICULAR DAY AND TIME. SOME OF THEM ARE SPECIAL PROGRAMS WE'VE HAD. SOME OF OUR SUMMER READING SUCH AS FOSSIL SLIME AND LEGO DINO AND IN THE PARK AND SOOMED FOR THE STORY TIME. DO YOU HAVE ANY QUESTIONS ABOUT THE REC CENTER LIBRARY UPDATE? MOVING ON TO MAIN LIBRARY ABILENE HERITAGE SQUARE. WE HAD PRETTY AMAZING IMPACT SINCE OPENING MAY 16TH, 2026. YOU CAN SEE WE HAVE ALREADY BEAT FISCAL YEAR 2025 VISITORS AT THE OLD MAIN LIBRARY.

THROUGH THE END OF JULY 117,346 VISITORS.

WE ALREADY HAD ABOUT 50% OF FISCAL YEAR 2025 PHYSICAL CIRCULATION, THAT'S ACTUAL PHYSICAL ITEMS CIRCULATED, BOOKS AND MOVIES, ET CETERA. OUR REFERENCE QUESTIONS WE ALREADY OUTDONE FISCAL YEAR 2025.

WE HAD 11,784 REFERENCE QUESTIONS AT THE NEUMANN LIBRARY. NEW LIBRARY CARDS 1880, WHICH WAS ALMOST 100% OF FISCAL YEAR 2025 AND I'M SURE WE HAVE BEAT THAT BY NOW. WE HAVE HAD 164 PROGRAMS PRESENTED AND WE HAD 9,053 PROGRAM ATTENDEES AT THE NEW LOCATION. WHICH IS ABOUT 70% OF WHAT WE HAD THE ENTIRE FISCAL YEAR LAST YEAR.

AND I DID A BREAK DOWN OF THE NEW LIBRAR CARDS.

WE HAVE 1200 ADULT RESIDENT NEW CARDS AND 224 ADULT NONRESIDENTS, 420 CHILD RESIDENTS, AND 36 CHILD NONRESIDENTS TO A TOTAL OF 1880 NEW CARDS.

ANY QUESTIONS? LIKE THE NUMBERS FOR THE RECREATION CENTERS WERE DOWN COMPARED TO MOCKING BIRD.

YOU LOOK AT HERITAGE SQUARE NUMBERS THEY MORE THAN EVEN OUT THE ATTENDANCE IS OBVIOUSLY BETTER AND PLUS A TRANSITION, HARD TO GET THROUGH THE TRANSITION TIME.

I DON'T HAVE ANY ISSUE WITH THE NUMBERS BEING DOWN BECAUSE

OVERALL THEY WILL BE -- >> YES.

AND THE REC CENTER HOURS ARE DIFFERENT FROM MOCKING BIRD.

AREN'T ANY EVENING HOURS AT THE REC CENTER LIBRARY AND MOCKING BIRD WE HAD EVENING HOURS UNTIL 9:00.

>> THANK YOU. ANY QUESTIONS?

>> THANK YOU. >> LESLIE.

>> GOOD MORNING COUNCIL, DIRECTOR OF PARKS AND RECREATION. VERY EXCITED TO PRESENT THE FIRST HUNDRED DAYS OF THE TWO RECREATION CENTERS BEING OPEN.

GV DANIELS RECREATION CENTER WE SAW 21,624 VISITORS.

AT SEARS RECREATION 20,022 VISITORS FOR THE TOTAL OF 41,646 VISITORS. THAT COMPARES TO THE LAST YEAR THAT WE WERE OPEN, WE HAD RIGHT AT 3,000 VISITORS DURING THAT YEAR. SO WE HAVE WELL SURPASSED WHAT WE HAD TWO YEARS AGO. WE HAVE OUR MEMBERSHIPS BY FAMILY, NOT BY INDIVIDUAL. WE HAD 3880 HOUSEHOLDS IN

[00:35:01]

COMBINED, SOME OF THESE ARE REPEAT LIKE THE LIBRARY AND OPEN BASKETBALL AND PICKLEALL AND THINGS LIKE THAT ARE MULTIPLE PROGRAMMING. IN THE HUNDRED DAYS 424 PROGRAM/OPEN GYM SESSIONS THAT TARGETED SENIORS, ADULTS, YOUTH AND INTERGENERATIONAL OPTIONS. ONE OF THE THINGS THAT'S NEW ABOUT WHAT OUR RECREATION CENTERS ARE ABLE TO SHOW IS A HEAT MAP. THIS TOP ONE IS AN AVERAGE OVER THE HUNDRED DAYS OF THE HOURS THAT PEOPLE LIKE TO COME IN.

YOU WILL NOTE THAT 9:00 A.M. ON MONDAYS, THAT IS A TRUE STATISTIC FOR THE PLAY AND LEARN TODDLER TIME THAT THE LIBRARY HAS. THE EVENINGS YOU WILL SEE ARE MORE POPULAR ON THE RECREATION SIDE.

THIS BOTTOM MAP, WE DID RUN THIS ONE FROM MAY 1ST THROUGH JULY 31ST INSTEAD OF APRIL 22ND, SO WE WERE NOT PULLING IN THE DATA FROM THE RIBBON CUTTING BECAUSE THAT SKEWED THE NUMBERS QUITE A BIT WHEN YOU HAVE OVER 500 PEOPLE COME IN A 30-MINUTE TIME FRAME. THE BOTTOM MAP REALLY IS SHOWING YOU THE TIMES OF DAYS AND THE ROOMS THAT PEOPLE ARE REALLY SPENDING TIME. YOU CAN'T GO INTO THE RECREATION CENTER AND NOT SEE PEOPLE IN ALMOST EVERY ROOM.

TO GET A TRUE STATISTIC OR LOOK AT HOW POPULAR THE ROOMS ARE, WHERE WE NEED TO MAKE SURE WE ARE SPENDING OUR TIME AND RESOURCES, THIS IS A HEAT MAP OF THE FIRST HUNDRED DAYS WHERE PEOPLE SPENT THE DAY AT GV DANIELS.

YOU WILL SEE AT SEARS, IT'S ALMOST THE SAME THING.

TUESDAYS AT 10:30 ARE THE BIG KID STORY TIME AND PARENT PLAY DATE HOUR. SO THAT IS A POPULAR TIME.

AS WELL AS INTO THE EVENINGS WHEN YOU SEE THERE'S A LOT OF PEOPLE THERE. AGAIN, YOU WILL SEE THAT THE GYM AND GAME ROOM ARE WHERE PEOPLE ARE SPENDING A SIGNIFICANT AMOUNT OF TIME. BUT THIS KIND OF SHOWS YOU THE FLOW OF WHERE PEOPLE ARE GOING THROUGH THE BUILDING.

I WILL TELL YOU FOR THE RECREATION AND FOR THE LIBRARY, WE ARE RECEIVING PHONE CALLS ABOUT EXPANDING OUR HOURS.

IN THE HEAT WE'RE DEALING WITH RIGHT NOW AS WELL AS IN THE WINTER TIME AND WHEN TIME CHANGES, PEOPLE HAVE ASKED IF WE CAN OPEN EARLIER. SO WHAT IS PRESENTED TO YOU IN THIS BUDGET IS BEING ABLE TO OPEN THE RECREATION CENTERS AT 6:00 A.M. ON MONDAY THROUGH SATURDAY LEAVING CLOSING TIME THE SAME. THAT DOES REQUIRE FOUR EXTRA FULL-TIME AND FOUR EXTRA PART-TIME PEOPLE TON ABLE TO COVER THOSE HOURS. NOT ONLY IS IT COVERING THE HOURS OF EXPANSION, BUT ALSO COVERING THE RENTALS IF SOMEBODY IS OUT SICK ON VACATION AND MATERNITY LEAVE AND ITEMS LIKE THAT. THE LIBRARY THEY'RE PROPOSING TO EXPAND THIS THE EVENINGS, NOT IN THE MORNINGS.

THEY WOULD LIKE TO GO BACK TO THE REGULAR HOURS OF OPERATION THEY HAD AT MOCKING BIRD THAT ALSO MATCHES WHAT THEY HAD AT THE MAIN LIBRARY. DURING THE SCHOOL YEAR, I THINK THIS IS IMPORTANT FOR KIDS TO HAVE ACCESS TO THE LIBRARY.

I THINK THIS WILL BE A GOOD THING FOR BOTH THE RECREATION CENTER AND THE LIBRARIES, FOR THEM TO BE ABLE TO STAY OPEN LATER IN THE EVENING. THIS REQUIRES FOUR FULL-TIME EMPLOYEES AND TWO PART-TIME EMPLOYEES FOR A TOTAL INVESTMENT IN NEW EMPLOYEES OF 627,987. I'M HAPPY TO ANSWER ANY

QUESTIONS. >> QUESTIONS FOR LESLIE?

THANK YOU. >> YOU'RE READY.

>> I AM. DIRECTOR OF FINANCE.

WE WILL MOVE TO THE FINANCIAL PART OF THE BUDGET PRESENTATION.

SO BEFORE WE GET INTO THE FUNDS DISCUSSION, I WANTED TO RECAP OUR FISCAL FRAMEWORK THAT WE USED TO BUILD THE BUDGET.

SO ONE OF THE MAIN DISTINCTIONS WE HAVE IS CLARIFYING BETWEEN RECURRING AND ONE-TIME REVENUE. SO RECURRING REVENUES WILL BE USED TO SUPPORT ONGOING OPERATIONS AND STAFFING AND COMPENSATION AND SERVICE DELIVERY.

WE USE ONE-TIME REVENUE OR REVENUES THAT ARE TEMPORARY OR LESS CERTAIN. WE RECOMMEND TO SUPPORT CAPITAL BUDGETS, DEFERRED MAINTENANCE AND OTHER STRATEGIC INVESTMENTS.

FOR FY '27 THE SALES TAX LIMITED THE ESTIMATE OF RECURRING GROWTH TO ONLY 4%. THIS IS CONSISTENT WITH THE FRAMEWORK POLICY WE PRESENTED AT THE PREBUDGET WORKSHOP.

ALSO WE HAVE RESERVED ABOUT 42% OF THE PROPERTY TAX INCREASE FOR ONE-TIME PURPOSES. SO AS EMILY MENTIONED EARLIER,

[00:40:10]

THEY ARE UP 22%. WE ARE AT OVER 13 BILLION IN VALUES. WE HAVE 2.29 IN NEW TAXABLE VALUE. ABOUT 2 BILLION OF THAT IS ASSOCIATED WITH THE DATA CENTRE. THE REMAINING ABOUT 278 MILLION IS JUST OVER NORMAL GROWTH. SO PRIMARILY THE GROWTH IS CONCENTRATED IN THE BUSINESS REAL PROPERTY AND PERSONAL PROPERTY, BUT WE DO STILL HAVE OUR REGULAR UNDERLYING GROWTH.

RESIDENTIAL GROWTH WAS ABOUT 5% THAT IS PRETTY CONSISTENT WITH HISTORICAL. OUR BPP NUMBER WE SPENT A LOT OF TIME DISCUSSING IN THE PREBUDGET WORKSHOP CAME IN LOWER THAN ANTICIPATED, BUT WE DO EXPECT THAT CATEGORY WILL CONTINUE GROWING AS THE REMAINING DATA CENTRES ARE BUILT OUT.

SO THE INCREASE IN PROPERTY TAX VALUE TRANSLATES INTO APPROXIMATELY 18 MILLION IN ADDITIONAL PROPERTY TAX REVENUES. AGAIN, WE'RE NOT TRA TREATING AF THE GROWTH AS RECURRING, WE SET ASIDE 7.5 MILLION THAT WILL BE TOWARDS ONE-TIME CAPITAL AND DEFERRED MAINTENANCE.

AS A RECAP OF THAT, WE DISCUSSED THAT A LOT OF THE DATA CENTRE VALUE MAY BE FRONT-LOADED. SO OVER THE NEXT FEW YEARS, EXISTING PROPERTY WILL MOVE INTO ABATEMENT WHILE ADDITIONAL FACILITIES WILL COME ON TO THE TAX ROLL.

SO THAT JUST CREATES A LITTLE BIT OF UNCERTAINTY ABOUT TIMING AND FLUCTUATION OF VALUES OVER THE NEXT SEVERAL YEARS.

THIS IS JUST A CONSERVATIVE APPROACH ON HOW WE'RE MANAGING SOME OF THAT RISK. BELOW IS A COMPOSITION HOW THE TAX BASE IS CHANGES. AS YOU CAN SEE, SINGLE FAMILY HAS DROPPED TO 45% AND YOU ARE NOW SEEING THAT TRANSITION OVER TO HIGHER PERCENTAGES OF THE BUSINESS REEL AND THE BUSINESS PERSONAL PROPERTY. STAFF PROPOSES TAX RATE OF 0.7495 PER HUNDRED DOLLARS OF TAXABLE VALUE.

SO IT'S JUST SLIGHTLY BELOW THE CURRENT TAX RATE OF 0.7506.

ALSO THE SECOND LOWEST TAX RATE IN THE PAST TEN YEARS.

WE DID UPDATE THE TAX RATE FROM THE ORIGINAL FILING FOR THE 2026 AIRPORT BOND ISSUANCE. OUR ESTIMATED DEBT SERVICE IN THAT -- FOR THAT CAME IN A LITTLE BIT UNDER THE ORIGINAL ESTIESTIMATE SO YOU'LL SEE THE E SENSATION I SHRINKING.

INS HAS DECREASED BECAUSE THE LARGER TAX BASE REQUIRES LOWER RATE TO SUPPORT DEBT AS FAR AS. MNO RATE FOR OPERATIONS INCREASES TO HELP US MAINTAIN THAT RELATIVELY FLAT OVER ALL TAX RATE. PROPOSED TAX RATE DECREASES $1 OF $100,000 OF TAXABLE VALUE, BUT BECAUSE OF EXISTING VALUES EVEN CREASE ON AVERAGE, THE AVERAGE PROPERTY WILL SEE INCREASE ON THE TAX BILL. EFFECTIVELY FOR ALL OF THE PROPERTIES, THE INCREASE IS ABOUT 4%.

SO YOU MAY HAVE NOTICED IN OUR AGENDA, THERE WAS A NEW TAXPAYER IMPACT STATEMENT INCLUDED. SO THIS IS A NEW STATE REQUIREMENT. THE CONTENT WITHIN IT IS PRESCRIBED BY STATE STATUTE. IT IS INTENDED TO COMPARE THE CITY'S PROPOSED TAX RATE WITH THE NO NEW REVENUE RATE AND ILLUSTRATES THE IMPACT ON THE MEDIAN VALUE HOMESTEAD.

BEFORE LOOKING AT THE EXAMPLE, THE NO NEW REVENUE RATE WOULD GENERATE APPROXIMATELY THE SAME AMOUNT OF REVENUE FROM PROPERTIES ON THE TAX ROLL IN BOTH YEARS.

AS EXISTING VALUES INCREASE, YOU WOULD SEE THE NO NEW REVENUE RATE DECREASE IN RESPONSE. SO UNDER OUR PROPOSED RATE, THE EXAMPLE HOMESTEAD WAS CNS MADE INCREASE OF $61 OR 5%, AT THE NO NEW REVENUE RATE, THE INCREASE WOULD BE ABOUT $9 OR 1%.

SO THE REASON THAT THE NO NEW REVENUE RATE IS JUST NOT ZERO BECAUSE IN THIS -- FOR THE MEDIAN HOMESTEAD, THEIR INCREASE ENDED UP BEING HIGHER THAN THE AVERAGE.

BUT IT IS A GOOD EXAMPLE A LOWER TAX RATE DOESN'T NECESSARILY MEAN LOWER INDIVIDUAL TAX BILL. EACH TAXPAYERS' EXPERIENCE WITH

[00:45:02]

WE'RE TAKING A CONSERVATIVE APPROACH JUST BECAUSE WE DON'T HAVE ENOUGH HISTORICAL CONTEXT OR INFORMATION TO UNDERSTAND IF AND HOW THESE VALUES WILL CHANGE OVER TIME OR HOW THEY MIGHT BE IMPACTED BY FUTURE LEGISLATION OR EVEN INDUSTRY CHANGES OR TECHNOLOGICAL ADVANCEMENTS. SO OUR GOAL IS SUSTAINABLE TAX RELIEF, NOT A REDUCTION THAT WE HAVE TO SUBSEQUENTLY REVERSE IN A SUBSEQUENT YEAR. AND ANOTHER THING TO POINT OUT IS THAT THE STATE'S SP 2, 3.5% GROWTH LIMITATION WOULD LIMIT THE ABILITY TO REBUILD THE CAPACITY LATER IN THE EVENT WE FOUND OURSELVES IN THE SITUATION WHERE WE DECREASE THE TAX RATE A LITTLE BIT TOO EARLY. SO OUR RECOMMENDATION REMAINS MAINTAIN THE RATE FOR NOW, EVALUATE THE NEW TAX BASE OVER TIME AND REVISIT OPPORTUNITIES FOR SUSTAINABLE RATE REDUCTIONS ANNUALLY. WE WILL NOW TRANSITION OVER TO OUR FUNDS PRESENTATION. SO FOR ALL OPERATING FUNDS, FY '27 OPERATING REVENUES TOTAL 406 MILLION WHILE EXPENDITURES TOTAL 415 MILLION. SO THERE IS AN $8.3 MILLION PLANNED USE FUND BALANCE. THIS REFLECTS CAPITAL AND EQUIPMENT INVESTMENTS, TRANSFERS OF PREVIOUSLY ACCUMULATED RESOURCES FOR PROJECTS, SOME OF IT IS AN INTENTIONAL USE OF FUND BALANCE FOR OPERATIONS, AS WE GO OVER THE INDIVIDUAL FUNDS I WILL POINT THOSE OUT TO YOU. THE MOST IMPORTANT THING THOUGH IS THE GENERAL FUND ITSELF REMAINS STRUCTURALLY BALANCED WITH REVENUES EQUAL TO EXPENDITURES.

SO AS YOU CAN SEE, WE HAVE A LONG LIST OF OPERATING FUNDS THAT WERE INCLUDED IN THE PROPOSED BUDGET DOCUMENT.

THE ONES THAT ARE HIGHLIGHTED WILL BE THE ONES THAT ARE INCLUDED IN TODAY'S PRESENTATION.

SO WE WILL INITIALLY FOCUS ON THE GENERAL FUND AND THE WATER AND SEWER FUND. THEY ARE MAJOR FUNDS OF THE CITY JUST DUE TO THE SIZE OF THE BUDGETS IN COMPARISON TO ALL OF THE OTHER FUNDS. THEN WE'LL COVER OTHER FUNDS THAT MAY HAVE HAD SIGNIFICANT FINANCIAL CHANGES, RATE IMPACTS OR WHERE WE HAVE POLICY CONSIDERATIONS.

SO THE GENERAL FUND IS THE CITY'S PRIMARY OPERATING FUND AND TOTALS ALMOST $163 MILLION IN REVENUE.

SO YOU'LL SEE AN FY '26 THERE IS INTENTIONAL USE OF FUND BALANCE OF 4.91 MILLION. AND OVERALL WITHIN THIS IN OUR FY '27 BUDGET, ONE THING TO POINT OUT PERSONNEL IS ONE OF THE LARGEST CATEGORIES OF EXPENDITURES.

68-CENTS OF EVERY DOLLAR SUPPORTS PER SALES COST.

OF THAT, 44-CENTS OF THE 68-CENTS GOES TOWARDS SUPPORTING PUBLIC SAFETY PERSONNEL. SO OUR 2026 REVISED BUDGET, WHAT CHANGED? SO AS YOU CAN SEE, WE HAVE HAD AN EXTRAORDINARY YEAR FOR SALES TAX.

SO WE HAVE INCREASED THAT REVENUE ESTIMATE BY OVER $19 MILLION. AND ANOTHER NOTABLE ITEM IS BUILDING PERMITS. THIS INCREASE YOU SEE HERE IS DOUBLE OUR ORIGINAL BUDGET FOR THAT ITEM.

SO WE ARE IN TOTAL REVENUES ENDED UP INCREASING ALMOST $21 MILLION IN THE REVISED BUDGET.

SO WE INTENTIONALLY DEPLOYED THOSE RESOURCES.

SO WITHIN THAT, ONE OF THE LARGER CATEGORIES IS YOU'LL SEE THE -- WE HAVE THE EXCESS FUND BALANCE TRANSFER THAT WAS APPROVED BY COUNCIL BACK IN APRIL.

SO WE ARE SENDING SOME OF THOSE FUNDS TO MIP FOR PROJECTS, AND ALSO FUNDING THE YEAR 3 OF THE AYSA-380 AGREEMENT.

WE ARE ALSO SENDING ALMOST 17 MILLION OF THE ONE TIME SALES TAX OVER TO MIP. THIS IS THE ONE-TIME SALES TAX WATER FALL. THIS IS A SLIDE THAT WE SHOWED COUNCIL DURING THE PREBUDGET WORKSHOP, THAT IT WAS AT THAT TIME STILL MORE OF A PLANNING TOOL.

SO AS YOU CAN SEE HERE, WE HAVE THE 19 MILLION IN SALES TAX, ONE-TIME SALES TAX. IT'S GOING DOWN INTO THE WATER

[00:50:03]

THEN YOU WILL SEE WE ARE SENDING 16.917 MILLION OVER TO MIP, PART OF NUMBER IS 1.9 MILLION OF THE 10% OPERATING RESERVE WHERE IN THE PREBUDGET WORKSHOP WE DISCUSSED KIND OF HOLDING BACK THE 10% OF SALES TAX, THE ONE-TIME SALES TAX IN THE EVENT THAT UNDERLYING SALES TAX GROWTH DOESN'T MEET ESTIMATES OR THE ORIGINAL ESTIMATES WE PUT IN THE BUDGET BY THE TIME WE GET DONE WITH THE PROJECT. IT PROVIDES MORE FLEXIBILITY FOR SOME OF THE FORECASTING TO BE IF WE DON'T HIT TARGETS.

SO ALSO WE HAVE ABOUT 14.98 MILLION GOING TO CAPITAL ONE-TIME INVESTMENTS. ONE THING TO MENTION IS THAT THIS TRANSFER TO MIP IS SUBJECT TO CHANGE BASED ON ACTUAL SALES TAX RECEIPTS. AS OF AUGUST, WE ARE ONLY ABOUT $4,000 OFF FROM BEING ABLE TO HIT THIS ESTIMATE.

SO ALL WE HAVE LEFT IS SEPTEMBER.

AS LONG AS WE HIT THE SEPTEMBER MONTHLY TARGET BUDGET, WE SHOULD BE ABLE TO TRANSFER THE ENTIRE AMOUNT AS PLANNED.

SO TURNING TO FY 2027, OUR GENERAL FUND BUDGET GROWS TO 141.6 MILLION -- SORRY. GROWS FROM 141.6 MILLION IN 2026 TO 162.7 MILLION IN 2027. PROPERTY TAX IS THE LARGEST DRIVER OF THIS INCREASE OF ABOUT 17.9 MILLION.

THE SALES TAX INCREASE IS 1.9 MILLION.

THIS IS THE 4% GROWTH THAT I MENTIONED EARLIER.

AS PART OF THIS ALSO, I WANTED TO MENTION WE DISCUSSED SOME OF THOSE CHANGES IN THE FISCAL POLICIES FOR COUNCIL.

WE DO PLAN TO STILL FOLLOW-UP ON THE UPDATES OF THE COUNCIL POLICIES AT THE SEPTEMBER 10TH MEETING.

SO PROPERTY TAX AND SALES TAX TOGETHER MAKE UP ABOUT 78% OF GENERAL FUND REVENUE. THEY ARE REALLY THE TWO PRIMARY REVENUE CATEGORIES THAT DRIVE OUR ABILITY TO FUND EXPENDITURES. NOW, LET'S MOVE TO THE 2027 PROPOSED EXPENDITURES. THE CHANGE MIMICS THE CHANGE IN THE REVENUES, WE ARE AT $162.7 MILLION PROPOSED BUDGET.

WE GROUPED THIS INTO SOME BROAD CATEGORIES SO YOU COULD SEE WHERE WE SPENT THE RECURRING CAPACITY.

SO WE HAVE PUBLIC SAFETY THAT REPRESENTS ABOUT A $5.13 MILLION INCREASE. COMPENSATION AND BENEFITS ACCOUNT FOR ANOTHER 3.2 MILLION. IN THIS AMOUNT, WE ALSO HAVE THE 15% INCREASE TO THE CITY HEALTH CONTRIBUTION AND ALSO THE SUPPLEMENTAL $700,000 TRANSFER TO THE SELF-INSURANCE FUND.

WE HAVE ANOTHER 2.8 MILLION THAT WILL SUPPORT STAFFING AND SERVICE CAPACITY. WE HAVE THE RECREATION AND LIBRARY EXPANDED HOURS, THE NEW POSITIONS AT THE ZOO, WE HAVE OUR RESTORED FROZEN POSITIONS, THE I.T. CONTRACTUAL SERVICES, AND WE ALSO HAVE THE INCREASED SUBSIDY FOR OUR HEALTH SERVICES FUND. ANOTHER 7.5 MILLION IS THE CAPITAL INVESTMENT WHICH IS THE ONE-TIME PROPERTY TAX TRANSFER TO MIP, SO TWO OF THE RECOMMENDATIONS WE HAVE FOR THE USE OF THOSE FUNDS INCLUDE THE $2.6 MILLION IMPLEMENTATION COST FOR THE CAD R AND S SYSTEM AND $5 MILLION FOR STREET IMPROVEMENTS. OUR LARGEST RECURRING INVESTMENT IN THIS BUDGET IS COMPENSATION BUT APPROACH FOR EACH VARY BY THE EMPLOYEE GROUP. NONCIVIL SERVICE EMPLOYEES WE ARE TRYING TO CLOSE THE EXISTING MARKETING GAP.

AVERAGE ADJUSTMENT IS 5.3% AND MINIMUM INCREASE OF 2%.

EVEN WITH THIS ADJUSTMENT WE KNOW THE CURRENT COMP PLAN IS OUTDATED. AS MENTIONED WE HAVE THE COMPENSATION STUDY WILL BE GOING THROUGH.

SO WE HOPE THAT THE RESULTS OF THAT WILL HELP DRIVE OUR FUTURE COMPENSATION DECISIONS. FOR POLICE AND FIRE CIVIL SERVICE THE OBJECTIVE IS MAINTENANCE OF THE COMPETITIVE MARKET PAY. POLICE ADJUSTMENTS WILL AVERAGE 3.99% WHILE FIRE AVERAGES 2.5%. REMEMBER THESE ARE AVERAGES

[00:55:06]

ONE NEW ELEMENT OF THIS YEAR'S BUDGET PROCESS IS THE FIRE PAY ORDINANCE. SINCE THERE IS NO LABOUR GROUP WITH THE FIRE ASSOCIATION THIS ORDINANCE WILL ESTABLISH THE FIRE CIVIL SERVICE COMPENSATION FOR THE UPCOMING FISCAL YEAR.

WITHIN IT, IT UPDATES FIRE PAY PLAN TO THE PIERCETY AVERAGE PLUS 3% WITH THE MINIMUM 2%. THIS ORDINANCE IS EFFECTIVE OCTOBER 1ST ALONGSIDE THE NEW BUDGET.

ANOTHER WAY TO LOOK AT THE GENERAL FUND BUDGET IS BY ASKING WHERE DOES THE DOLLAR GO? SO JUST OVER HALF, 52-CENTS OF EACH DOLLAR GOES TOWARDS FUNDING PUBLIC SAFETY.

BY FAR THE LARGEST INVESTMENT. ANOTHER 16-CENTS SUPPORTS COMMUNITY AND QUALITY OF LIFE. THIS INCLUDES PARKS, RECREATION, LIBRARY, ALSO OUR SUBSIDY FOR HEALTH AND TRANSIT FUNDS.

REMAINING THIRD SUPPORTS INFRASTRUCTURE, DEVELOPMENT, ADMINISTRATIVE FUNCTIONS AND ALSO SUPPORT SERVICES LIKE I.T., ACCOUNTING, HR, THE OTHER IS 5-CENTS FOR CAPITAL INVESTMENT WHICH IS THE $7.5 MILLION OF PROPERTY TAX GROWTH THAT INTENTIONALLY RESERVED FOR ONE-TIME INVESTMENT INSTEAD OF RECURRING OPERATIONS. SO THIS SLIDE CLOSES THE LOOP ON OUR PRIMARILY FINANCIAL MODEL THAT WE PRESENTED BACK IN MAY.

SO THE BIGGEST REVENUE CHANGE WAS THE PROPERTY TAX.

WE HAD DISCUSSED THE FACT THAT WE THOUGHT CERTIFIED VALUES WERE INITIALLY TOO HIGH, THAT ENDED UP BEING ACCURATE.

IT DROPPED A BILLION FROM THAT. SO WE REDUCED PROPERTY TAX REVENUE BY ABOUT 5.2 MILLION. FOR EXPENDITURES, THE PRELIMINARY ASSUMPTIONS HAVE BEEN REPLACED WITH ACTUAL DEPARTMENT REQUESTS AND SERVICE DECISION.

S. AS YOU CAN SEE PUBLIC SAFETY COSTS CAME IN HIGHER WHILE SEVERAL INITIATIVES LIKE I.T.

AND THE HEALTH SERVICES FUND WEREN'T INCLUDED IN ORIGINAL MODEL AND THEY'RE NOW PRESENTED ABOVE.

WE ALSO RESTORED FEWER FROZEN POSITIONS THAN INITIALLY MODELED. AND WE REDUCED THE PROPOSED PROPERTY TAX ONE-TIME INVESTMENT FROM THE 15.6 MILLION TO THE 7.5 MILLION. SO ONE OF THE IMPORTANT THINGS TO NOTE IS THE FINANCIAL MODEL WHILE NOT ENTIRELY ACCURATE DID WHAT IT WAS INTENDED TO DO. IT HELPED US FORECAST OUT THE NEW YEAR AND WE WERE ABLE TO PRESENT A PROPOSED BUDGET THAT'S BALANCED. SO MOVING OVER TO OUR WATER AND SEWER OPERATING FUND, SO AS YOU CAN SEE ON FY 2026 REVISED, THERE IS A PLANNED USE OF ONE-TIME RESOURCES THAT 6.7 MILLION OF EXCESS FUND BALANCE THAT WILL BE TRANSFERRED OVER TO CAPITAL PROJECTS. BUT THEN IN FY 2027, WE DO RETURN TO A POSITIVE OPERATING ENVIRONMENT WITH EXPENDITURES OVER $89 MILLION. SO THAT $2 MILLION SURPLUS WILL SUPPORT FUND BALANCE REQUIREMENTS AND WILL RE-EVALUATE THAT DURING NEXT YEAR'S BUDGET PROCESS TO EXAMINE WHETHER OR NOT IT'S POSSIBLE TO TRANSOFFICER THAT TO FURTHER FUND CAPITAL PROJECTS. ALL EXCESS FUNDS WITHIN THE FUND GO TO FUND THE CAPITAL INVESTMENTS NEEDED IN THE WATER AND SEWER SYSTEM. WITHIN FY 2026, THERE'S ONE BIG REVENUE CHANGE. THESE ARE THE SETTLEMENT PROCEEDS OF 8.7 MILLION. SO WE ARE SENDING THOSE OVER TO CAPITAL PROJECT FUND. SO IT WILL BE IN A SEPARATE FUND CALL THE PFAS PROJECT FUND TO TRACK EVERY DOLLAR THAT THE FUNDS ARE SPENT ON. THEY WILL GO TOWARDS INFRASTRUCTURE IMPROVEMENTS THAT HELP TREAT PFAS SPECIFICALLY AND ALSO HAVE THE EXCESS FUND BALANCE THAT WILL BE TRANSFERRED OVER TO THE CAPITAL PROJECTS ALSO.

WE DID ALSO INCLUDE SUPPLEMENTAL CONTRIBUTION FROM THE HEALTH PLAN FROM THE WATER FUND ALSO, THE AMOUNT WAS CALCULATED ON A PRO RATED SHARE OF THEIR PARTICIPANT IN THE HEALTH PLAN.

SO THE EXEXPENDITURES CHANGES INCREASE THE BUDGET BY 15.5 MILLION. MOVING TO 2027, THE WATER AND SEWER FUND DOES HAVE A 6% RATE INCREASE FOR WATER AND SEWER.

[01:00:02]

OUR EXPENDITURES INCREASED ABOUT 2.397 MILLION OR 3%, PROPOSED BUDGET IS NOW AT 89.3 MILLION. ESSENTIALLY WHAT YOU SEE HERE THIS REDUCED TRANSFER FOR CAPITAL PROJECTS, WE HAVE RE-ALLOCATED TOWARDS FUNDING COSTS AND A LOT OF THAT TO STAFFING, CHEMICALS. THE BIGGEST PORTION IS FUNDING THE DEBT SERVICE FOR THE 2026 TEXAS WATER DEVELOPMENT BOND FOR THE NORTHEAST TREATMENT PLANT. SO LET'S MOVE OVER TO OUR HEALTH SERVICES FUND. SO OUR HEALTH SERVICES FUND IS BECOMING INCREASINGLY RELIANT ON LOCAL SUPPORT.

COUNTY FUNDING INCREASED $53,000.

GENERAL FUND SUPPORT ALSO INCREASED BY ABOUT $525,000.

SO YOU'LL NOTICE THAT FEDERAL AND STATE GRANT REVENUE DID ALSO INCREASE. BUT IN PROPORTION TO THE TOTAL REVENUES FOR THE FUND, IT NOW MAKES UP A SMALLER SHARE.

IT DROPPED FROM 53% OF REVENUES TO ABOUT 50% OF TOTAL FUNDING.

A COUPLE OTHER CHANGES INCLUDE TWO NEW POSITIONS AND ADDITIONAL $40,000 TO EXPAND IMMUNIZATION. OUR HOTEL OCCUPANCY TAX FUND.

SO OUR REVENUES HERE HAVE BEEN EXCEPTIONALLY STRONG IN FY 2026, WE ARE AT 88% ABOVE THE ORIGINAL BUDGET.

THIS IS LARGELY REFLECTING THE DATA CENTRE-RELATED LODGING DEMAND. SO IN FY 2027 WE ASSUMED REVENUES WILL DROP APPROXIMATELY 30% FROM THE CURRENT BUDGET.

THE REASON FOR THIS ESTIMATE IS THAT WHEN WE DEVELOP THIS BUDGET, WE THOUGHT THE CONSTRUCTION ACTIVITY WOULD START TO MODERATE DURING 2027. SO AS OF NOW, WE KNOW THAT CONSTRUCTION ACTIVITY WILL CONTINUE UNTIL 2028, SO ACTUAL REVENUES MAY ACTUALLY OUTPERFORM OUR ESTIMATES.

BUT I THINK GIVEN THE UNUSUAL NATURE OF THIS ACTIVITY, WE THINK THAT A CONSERVATIVE ESTIMATE REMAINS APPROPRIATE.

THE TRANSFERS OUT, THAT'S WHAT YOU'LL SEE WITH THAT NEGATIVE NET REVENUES, DEFICIT OR FUNDING SHORT FALL OF 3.25.

THAT IS ACTUALLY AN INTENTIONAL PLANNED USE OF FUND BALANCE.

WE WILL BE USING THE FUNDS TO SUPPORT CONVENTION CENTER CAPITAL INVESTMENT. SO WE WILL MOVE OVER TO THE AIRPORT. SO FY 2027 DOES REPRESENT AN IMPORTANT FINANCIAL MILESTONE FOR THE AIRPORT AND IT IS THE FIRST YEAR THAT THEIR BUDGETED REVENUES WILL FULLY FUND THEIR OPERATING COSTS. SO THE IMPROVEMENT IN REVENUE DOES REFLECT THREE K NEW ROUTES. $589,000 OF TERMINAL LEASE REVENUE IN THEIR NEW AIRPORT MAINTENANCE WORKER POSITION.

NEXT WE HAVE OUR TRANSIT FUND THAT OPERATES THE CITY LINK BUS SERVICE. THEY DO CONTINUE TO RELY HEAVILY ON FEDERAL FUNDING. SO ONE THING WE NOTICED WHEN DEVELOPING THIS BUDGET IS THAT IT APPEARS FARE ESTIMATES WERE ORIGINALLY OVERSTATED. WE DID NEED TO CORRECT THAT IN BOTH FY 2026 REVISED AND FY 2 SEVEN PROPOSED.

THIS EXPLAINS THE DECREASE YOU SEE IN CHARGES FOR SERVICE DESPITE HAVING THE SECOND ADJUSTMENT OF THE PREVIOUSLY APPROVED FARE ADJUSTMENT. THIS INCLUDES FUND BALANCE OF 462,000 TO SUPPORT OPERATIONS. WE TYPICALLY IN MOST YEARS HAVE PRIOR YEAR ROLL OVER FUNDS AND FROM NOT USING THE ALLOCATION BUT AS FEDERAL FUNDING MAY NOT KEEP PACE WITH RISING COSTS, WE BELIEVE THAT IT'S POSSIBLE THAT ADDITIONAL GENERAL FUND SUPPORT MAY BE NEEDED IN FUTURE YEARS. YOU'VE PROBABLY HEARD ME SAY THIS BEFORE, WE HAVE CONTINUED TO MONITOR THIS OVER THE PAST FEW YEARS. SO WE WILL CONTINUE TO EVALUATE THIS ANNUALLY AS WE DEVELOP THE BUDGET.

SO HERE IS OUR SOLID WASTE FUND. THE FUND REMAINS FINANCIALLY HEALTHY. BUT WE DO HAVE TO BE PROACTIVE ABOUT MAINTAINING RATES JUST TO ENSURE THAT WE ARE ABLE TO CONTINUE TO KEEP UP WITH COSTS AND GROWTH.

[01:05:04]

WE ALSO HAVE FOUR NEW POSITIONS AND ARE FUNDING ONE NEW ROLL OFF TRUCK. OUR STORM WATER FUND, WE HAVE A RATE INCREASE HERE THAT WILL GENERATE APPROXIMATELY $675,000.

SO THE IMPACT OF THE RATE INCREASE IS ABOUT 10 TO 11% ON RESIDENTIAL. THERE IS A 32.5% INCREASE FOR COMMERCIAL. IT IS A COST OF SERVICE ALIGNMENT TO ENSURE THAT EACH RESPECTIVE CATEGORY IS CONTRIBUTING THEIR FAIR SHARE TO THE COST TO SUPPORT THE FUND.

SO WHAT THIS DOES IS THIS ADDITIONAL REVENUE CAPACITY CREATES OPPORTUNITIES FOR STORM WATER CAPITAL IMPROVEMENTS, AND WE HAVE OUR FIRST PROJECT PLAN WILL BE THE DOWNTOWN RAILROAD UNDERPASS. THE SELF-INSURANCE FUND, WITHIN THIS IT IS MULTIPLE OF THE CITY INSURANCE POLICIES.

ONE OF THE BIGGEST COMPONENTS OF IT THIS YEAR IS OUR HEALTH PLAN.

SO HEALTH COSTS REMAIN ONE OF THE BIGGEST COSTS THAT WE HAVE IN THE CITY. SO THE CITY'S CONTRIBUTION RATE WE'RE RECOMMENDING 15% INCREASE AND WE ARE ALSO SUPPLEMENTING THE FUND OF ADDITIONAL $2.5 MILLION IN FY 2026 REVISED AND GENERAL FUND IS SETTING $770,000 IN FY 2027.

WHAT IT DOES IS PROVIDES ADDITIONAL SUPPORT AND CUSHION WITHIN THE FUND BALANCE TO ENSURE THAT WE HAVE ENOUGH RESERVES ON HAND TO BE ABLE TO SUSTAIN ANY ADDITIONAL IMPACT BUT ALSO SO THERE IS ADD YET ADE FUNDING IN THERE AS WE CONTINUE TO WORK ON THE PLAN AND MAKE CHANGES.

IT GIVES US TIME. SO THIS CHART DEMONSTRATES HOW COSTS ARE OUTPACING A PLAN CONTRIBUTION.

SO THE DARKER BLUE BAR IS THE -- REPRESENTS OUR CLAIM COSTS.

SO THE LARGEST IDENTIFIABLE DRIVER WE HAVE OF OUR CLAIMS INCREASE WE HAVE IDENTIFIED A SIGNIFICANT SPIKE IN CLAIMS ASSOCIATED WITH THE SINGLE STAND-ALONE EMERGENCY ROOM PROVIDER. THIS ACCOUNTS FOR ALMOST $1.9 MILLION OF THE INCREASE. AND IN ADDITION TO THIS, WE'RE SEEING HIGHER STOP LOSS PREMIUMS AND BROADER MEDICAL COST INFLATION THAT YOU SEE IN A YEAR.

SO OUR IMMEDIATE RESPONSE TO THIS AND IT HAS INCLUDED INCREASE CITY FUNDING, SUPPLEMENTAL RESERVES TO ENSURE THE FUND BALANCE REMAINS HEALTHY WHILE WE CONTINUE TO WORK THROUGH A RESPONSE WITH OUR CONSULTANTS AND OUR EMPLOYEE BENEFITS COMMITTEE. WE ARE WORKING ON COST CONTAINMENT STRATEGIES AND PLAN OPTIMIZATION THAT WILL TAKE TIME TO IMPLEMENT. WE ARE NOT INCREASING EMPLOYEE PREMIUMS FOR 2027. TO PUT THAT DECISION INTO PERSPECTIVE, WITHOUT -- IF WE WERE TO BACK OUT THE SUPPLEMENTAL CITY FUNDING, THE PLAN WOULD HAVE HAD $3.7 MILLION SHORT FALL. 10% EMPLOYEE INCREASE WOULD HAVE GENERATED $262,000. WHEN YOU COMPARE THAT 262 AGAINST $3.7 MILLION FUNDING SHORT FALL, IT IS NOT GOING TO BE IMPACTFUL FOR THIS FISCAL YEAR IN REGARDS TO RESOLVING THAT. IT WOULD HAVE ALSO OFFSET THE COMPENSATION PROGRESS WE'RE TRYING TO MAKE.

SO NOW WE WILL MOVE OVER TO SELECTED PROJECT AND MULTI-YEAR FUNDS. SO THIS LIST YOU'LL NOTICE THERE'S ONLY ONE OF THESE FUNDS THAT ARE NOT HIGHLIGHTED.

SO THE FUNDS THAT ARE IN BOLD ARE THE ONES THAT ARE INCLUDED IN THE PRESENTATION. WE HAVE NOT INCLUDED THE NUMBER 2 WITHIN THE BUDGET PRESENTATION BUT IT IS INCLUDED IN THE DOCUMENT. TO START OFF, WE HAVE WHAT WE CALL THE IN-FILL DEVELOPMENT FUND.

CURRENTLY ONLY ONE PROGRAM IN THE FUND THAT IS REBUILD ABI, SO WE HAVE CONTINUED THE ONE MILLION DOLLARS ANNUAL INVESTMENT FOR FY '27 THAT IS APPROXIMATELY 32 HOMES.

TO DATE, 73 HOMES HAVE BEEN COMPLETED AND 36 ARE IN PROGRESS. SO FOR FY 2024, THE PROPERTY VALUE IMPACT OF THIS PROGRAM, SO AS YOU CAN SEE THE STARTING VALUE WAS $300,000. THAT HAS GROWN TO 6.3 MILLION.

SO THAT IS A $6 MILLION INCREASE IN THE VALUES.

[01:10:02]

SO THIS FUND WAS INITIALLY ESTABLISHED AND SUPPORTED BY A ONE CENT COMMITTED PROPERTY TAX RATE THAT WAS DISCONTINUED BEFORE THE FY 2025 BUDGET. HOWEVER, WE STILL CONTINUE TO USE THE FUND TO ACCUMULATE RESOURCES AND TRACK PROJECTS FOR THE CONVENTION CENTER. SO WE WILL BE TRANSFERRING THOSE HOT FUNDS OVER. SO 3.25 MILLION TO FUND TWO CAPITAL PROJECTS FOR THE CONVENTION CENTER INCLUDING A KITCHEN EQUIPMENT REPLACEMENT. THIS IS THE REPLACEMENT THAT IS ALIGNED WITH FORECASTING SCHEDULE ON WHEN THOSE NEED TO BE MADE. WE HAVE ALSO INCLUDED A SANITARY SYSTEM UNDERGROUND REPLACEMENT WHICH ACTUALLY REPRESENTS PHASE 1 OF THE CONVENTION CENTER REDEVELOPMENT PLAN.

SO THIS FUND DEMONSTRATES THE RELATIONSHIP BETWEEN OUR STREET MAINTENANCE FUND AND OUR STREET PROJECT FUND, WHICH ARE ESSENTIALLY TWO STAGES OF THE SAME PROCESS.

SO THE STREET MAINTENANCE FUND IS WHERE WE ACCUMULATE LOCAL RESOURCES AND THE STREET MAINTENANCE FEE IS DEPOSITED INTO. SO WE ACCUMULATE ALL OF THOSE LOCAL RESOURCES AND THEN ONCE PROJECTED ARE IDENTIFIED AND CONTRACTS ARE AWARDED, THOSE RESOURCES ARE T TRANSFERRED TO E STREET PROJECT FUND WHERE WE TRACK THE PROJECT COSTS.

FOR 2027 UP TO 14.7 MILLION IS AVAILABLE FOR PROJECTS WITH 11.6 MILLION CURRENTLY IDENTIFIED IN THE PROJECT FUND.

THERE IS A REMAINING FUND BALANCE OF 8.9 MILLION WHICH GIVES US CAPACITY AND FLEXIBILITY AS ADDITIONAL PROJECTS ARE EVALUATED. THE FIRE APPARATUS FUND RESTORES FUNDING THAT TRANSFER FROM THE GENERAL FUND.

IF YOU RECALL, WE DID CUT THE 1.1 MILLION TO 1 MILLION.

WE HAVE RESTORED IT BACK TO 1.1 MILLION FROM THE GENERAL FUND. THIS IS A FUND WHERE WE MAINTAIN AN OVER 20 YEAR REPLACEMENT AND FUNDING SCHEDULE.

THIS ENSURES THAT WE CAN INCREASE GENERAL FUND SUPPORT CAN BE PHASED IN AND WE DON'T HAVE SURPRISES AND WE HAVE TO PUT EXTRA MILLION DOLLARS INTO THE FUND.

IT IS A FUNDING STRATEGY THAT WE USE.

2027 INCLUDES $2 MILLION FOR SCHEDULED LADDER TRUCK REPLACEMENT. POLICE APPARATUS FUND, FUNDING FROM THE GENERAL FUND IS ALSO RESTORED TO $1.15 MILLION.

SIMILARLY WITH THE FIRE APPARATUS FUND WE MAINTAIN A REPLACEMENT SCHEDULE THAT SPANS OVER 20 YEARS.

SO LOOKING FORWARD TO WITHIN 2027, THERE AREN'T ANY -- I WOULDN'T SAY SIGNIFICANT, BUT JUST UNUSUAL.

MOST OF THE COSTS END UP BEING RECURRING BECAUSE WE'RE FUNDING A RECURRING ANNUAL CONTRACT RELATED TO CAMERAS.

BUT IT DOES INCLUDE THE EQUIPMENT RELATED TO OUTFITTING PHASE 3 OF THE NEW LEASED VEHICLES FOR PATROL.

MOVING FORWARD, WHAT WE'LL HAVE TO CONSIDER IS THE CAD/RMS AND TASER AND CAMERA INITIATIVE THAT'S INCLUDED IN THIS DOCUMENT. THE INITIAL IMPLEMENTATION COSTS ARE BEING FUNDED THROUGH MIP FOR FY 2027 WHY YOU DIDN'T NECESSARILY SEE THEM IN HERE, BUT MOVING FORWARD WE NEED TO MAKE THOSE ADJUSTMENTS INTO NEXT YEAR'S BUDGET.

THIS IS OUR FLEET REPLACEMENT FUND, WHICH INCLUDES AN ALMOST $9.2 MILLION INVESTMENT FOR FY 2027, THE LARGEST SHARE OF THESE REPLACEMENTS IS OUR HEAVY EQUIPMENT FOLLOWED BY REPLACEMENT OF VEHICLES AND OUR VEHICLE LEASE PAYMENTS.

SO THIS DOES CONTINUE THE REPLACEMENT OF AGES ASSETS AND ALSO COMPLETES THE MULTI-YEAR PATROL ONE TO ONE VEHICLE INITIATIVE. THIS IS THE FINAL YEAR TO HAVE ANOTHER YEAR OF PATROL VEHICLE LEASES.

SO OUR MINOR IMPROVEMENT FUND ALSO REFERRED TO AS MIP IS ONE TIME FINANCIAL STRATEGY COMES TOGETHER.

FY 2026 REVISED BUDGET INCLUDES $41.1 MILLION IN RESOURCES.

[01:15:05]

ONE MAJOR CHANGE WE HAD FROM THE BUDGET AS INITIALLY FILED, WE MOVED THE FIRE PENSION CONTRIBUTION FROM 2027 TO 2026.

SO WE ARE PROPOSING A $13.5 MILLION CONTRIBUTION INTO THAT FUND THAT WE WOULD LIKE TO BE ABLE TO DEPOSIT BEFORE THE END OF THE FISCAL YEAR. WHAT THIS DOES IS IT ENSURES IT WILL BE FACTORED INTO THE NEXT EVALUATION AND WE WILL BE ABLE TO SEE THE IMPACT OF THAT CONTRIBUTION WITHIN, YOU KNOW, THE NEXT YEAR. SO MOVING OVER TO 2027, SO WE BEGIN WITH AN $8.8 MILLION FUND BALANCE.

WE TRANSFER OVER THE ONE-TIME PROPERTY TAX REVENUE OF 7.5 MILLION. THIS PROVIDES ALMOST $16.3 MILLION IN RESOURCES AVAILABLE.

SO WE HAVE INCLUDED RECOMMENDATIONS FOR 14.35 MILLION IN PROJECT EXPENDITURES, WHICH LEAVES $1.9 MILLION UNALLOCATED AND AVAILABLE.

THE DETAILED LIST OF MIP PROJECTS BEGINS ON PAGE 84 OF THE BUDGET DOCUMENT. SO OUR PROPOSED MIP PROJECTS FALL INTO THREE CATEGORIES. THE FIRST OF WHICH IS PUBLIC SAFETY AND ORGANIZATIONAL CAPACITY.

THEN WE HAVE OUR PARKS AND COMMUNITY AMENITIES AND THEN WE HAVE OUR INFRASTRUCTURE PROJECTS.

SO AT THE CONCLUSION OF OUR PRESENTATION, WE'D LIKE TO INVITE COUNCIL TO RETURN TO THE LIST OF MIP PROJECTS TO HAVE SOME ADDITIONAL DISCUSSION AND THEN TALK ABOUT RECOMMENDATIONS.

SO A FEW OF MORE STRATEGIC INITIATIVES INCLUDE THE FACILITY CONDITION ASSESSMENT, WHICH WILL HELP US PRIORITIZE PROJECTS FOR THAT $1.5 MILLION THAT YOU SEE FOR DEFERRED FACILITY MAINTENANCE. I ALSO EXPECT IT WILL PROVIDE IMPORTANT INSIGHTS FOR OUR SANDY STREET FACILITIES THAT WE MENTIONED IN OUR CITY MANAGER LETTER THAT I WILL COVER HERE SHORTLY. WE ALSO HAVE A TRAFFIC SIGNAL STUDY, WHICH WILL HELP US DEVELOP A LONG-TERM PLAN FOR FUTURE TRAFFIC SIGNAL IMPROVEMENTS.

AND WE ALSO HAVE OUR TASER AND CAMERAS INITIATIVE, IT PROVIDES TRANSITION FOR THE CURRENT TASER AND BODY-WORN AND IN CAR CAMERA CONTRACTS NEARING EXPIRATION. THE AMOUNT HERE IS INTENDED TO PROVIDE A ONE-YEAR TRANSITION OVERLAP SO WE CAN MOVE OVER TO THOSE NEW SYSTEMS SEAMLESSLY. SO WE HAVE IDENTIFIED TWO MAJOR PROJECTS TO BEGIN EVALUATION AND DISCUSSION ON THE ISSUANCE OF DEBT FOR EITHER OR BOTH PROJECTS.

SO THESE INCLUDE THE CONVENTION CENTER REDEVELOPMENT AND THE SANDY STREET FACILITIES. SO AS WE DEVELOP A BROADER PLAN FOR SANDJ STREET, WE ALSO NEED TO EVALUATE THE FLEET FUELING INFRASTRUCTURE LOCATED THERE WHICH MAY REQUIRE A NEW IMMEDIATE SOLUTION JUST DUE TO IT BEING AT THE END OF ITS USEFUL LIFE. SO IF COUNCIL BASED ON THE DISCUSSION, IF COUNCIL IS SUPPORTED WE WOULD FOLLOW UP WITH UPDATING COST ESTIMATES AND DETERMINING PROPOSED PHASES AND TIMELINES AND DEVELOPING A MULTI-YEAR STRATEGY FOR COUNCIL CONSIDERATION. AS PART OF THIS, WE WOULD RECOMMEND THAT WE WAIT UNTIL AFTER WE RECEIVE NEXT YEAR TAXABLE VALUES BEFORE ISSUING ADDITIONAL DEBT.

THE EXCEPTION TO THIS IS AIRPORT BONDS THAT ARE ALREADY COMMITTED TO AND WATER AND SEWER DEBT THAT WOULD BE FUNDED WITH THEIR REVENUES. THIS GIVES US ADDITIONAL TIME TO EVALUATE THE STABILITY OF TAXABLE VALUES, WHAT DEBT CAPACITY WE MIGHT HAVE, AND HOW IT MIGHT TRULY IMPACT THE TAX RATE. SO OUR THOUGHT IS IF WE START THIS PLANNING PROCESS NOW, WE WOULD BE BETTER PREPARED TO MOVE FORWARD WHEN THAT TIME COMES. HERE IS A LIST OF OUR PROPOSED FEE CHANGES. MOST OF WHICH WE ALREADY DISCUSSED IN SOME OF OUR FUND PRESENTATIONS ESPECIALLY WITH OUR UTILITIES, OUR ENTERPRISE FUNDS.

SO WHAT WE HAVE HERE ARE STORM WATER AND SOLID WASTE FEE CHANGES WILL BEGIN WITH THE OCTOBER BILLING FOR CUSTOMERS.

WATER AND SEWER WILL BEGIN WITH THE NOVEMBER BILLING, BECAUSE IT IS BILLED BASED ON OCTOBER USAGE.

AND ALSO OUR WHOLESALE WATER CUSTOMERS REQUIRE 60-DAY WRITTEN

[01:20:01]

WE ALSO HAVE SEVERAL DEVELOPMENT-RELATED FEE CHANGES.

THERE IS A NEW DEVELOPER STREET LIGHT FEE THAT IS IN THE BUDGET, SO THIS FEE IS OFFSET WITH EXPENDITURES FOR INSTALLATION FOR THE STREET LIGHTS, REALLY INTENDED TO BE BUDGET NEUTRAL ON RECOVERING THE COST THAT WE'RE INCURRING FOR THAT PROGRAM.

OTHER CHANGES INCLUDE A RESTRUCTURING OF OUR ENVIRONMENTAL LAB FEES AND ALSO A $2 ZOO ADMISSION INCREASE THAT WILL BECOME EFFECTIVE WHEN THE PROJECT OR NEW EXHIBITS OPEN.

SO WE WANTED TO BRING ALL OF OUR CHANGES TOGETHER TO PROVIDE THE ESTIMATED IMPACT ON AN ILLUSTRATIVE HOUSEHOLD.

WE HAVE ONLY INCLUDED THE MORE COMMON FEES THAT MOST RESIDENTS ARE -- WILL EXPERIENCE ON THE RECURRING BASIS.

IT DOES USE THE MEDIAN VALUE HOMESTEAD WITH TYPICAL RESIDENTIAL USAGE SO THE ESTIMATED IMPACT IS 9.81 PER MONTH OR 117.67 PER YEAR WHICH IS THE EQUIVALENT OF ABOUT 32-CENTS PER DAY. OF THAT, ON THE MONTHLY BASIS, SO $5.05 IS PROPERTY TAX AND 376 IS WATER AND SEWER AND 54-CENTS SOLID WASTE AND 46-CENTS IS STORM WATER.

ALSO LIKE TO MENTION FOR QUALIFYING TAX HOMESTEADS, ANY INCREASE IN PROPERTY VALUE WILL NOT CHANGE THEIR CITY PROPERTY TAX BILL. SO FOR THOSE RESIDENTS ESTIMATED IMPACT IS 4.76 PER MONTH OR 57.12 PER YEAR.

SO THIS BRINGS US TO THE DIRECTION WE NEED FROM COUNCIL TODAY. WE'RE LOOKING FOR FEEDBACK ON OPERATING AND CAPITAL INVESTMENTS.

OUR PROPOSED TAX RATE, FEE ADJUSTMENTS, PROPOSED MIP PROJECTS AS WELL AS ANY MODIFICATIONS COUNCIL WOULD LIKE INCORPORATED BEFORE ADOPTION. WE ALSO WOULD LIKE DISCUSSION OR RECOMMENDATION OR DIRECTION ON THE ISSUANCE OF DEBT FOR EITHER SANDY STREET OR THE CONVENTION CENTER.

AGAIN, TODAY IS JUST OUR FIRST READING AND INITIAL APPROVAL.

WE'LL RETURN ON SEPTEMBER 10TH FOR THE PUBLIC HEARING SECOND READING AND ADOPTION OF THE BUDGET.

DOES COUNCIL HAVE ANY QUESTIONS? LIKE TO OPEN UP FOR DISCUSSION.

>> TAKE TEN MINUTES BEFORE WE GET INTO QUESTIONS.

[01:30:14]

[01:30:17]

WE WERE GETTING ZERO DOLLARS FROM IT.

AND THEY ANNEXED PART OF THEIR BUILDING WHICH BROUGHT THEM ON TO THE TAX ROLLS, AND PART OF THE AGREEMENT WITH THEM, THERE'S AN ABATEMENT THAT COMES INTO PLAY.

THAT DOESN'T COME INTO EFFECT UNTIL THE FIRST FULL YEAR THEIR FULLY OPERATIONAL. THERE IS FLUCTUATION BACK AND FORTH THAT MAKES IT CHALLENGING TO YOU PLUS THE LARGER PERCENT OF PROPERTY THAT THEY HAVE THAT'S BUSINESS PERSONAL PROPERTY WHICH IS DIFFERENT FROM REAL PROPERTY.

IF YOU CAN JUST TOUCH ON THE UNCERTAINTY YOU'RE HAVING TO JUGGLE RELATED TO THOSE. WE HAVEN'T HAD THAT BEFORE.

AS SUCH A LARGE PERCENTAGE OF THE BUDGET.

JUST FOR OUR BENEFIT AND THE PUBLIC'S BENEFIT IF YOU CAN

EXPAND ON IT. >> ABSOLUTELY.

THE DIFFERENCE OF REAL PROPERTY AND BPP IS FOR CLARITY.

>> REAL PROPERTY REFERS TO OUR BUILDINGS.

PRIMARILY. BUSINESS POPERTY ARE ITEMS INSIDE OF THOSE THAT ARE TYPICAL MOVABLE.

ANYTHING FAMILIAR WITH THE PROPERTY TAX PROCESS, TAXPAYERS HAVE TO FILL THE FORMS OUT AND REPORT TO THE APPRAISAL DISTRICT WHAT THOSE AMOUNTS ARE AND WHAT THOSE VALUES ARE.

IT'S REALLY UP TO WHEN YOU START HAVING BILLION DOLLAR INVESTMENTS AS OPPOSED TO WHERE PREVIOUSLY THE PERCENTAGE OF OUR TAX BASE THAT WAS BPP WAS ATTRIBUTED TO BUSINESS PERSONL PROPERTY WAS RELATIVELY SMALL. SO IF THAT WAS HAPPENING WITH FLUCTUATIONS, WE WOULD LIKELY WOULD NOT EVEN NOTICE IT.

BUT WHEN YOU START ADDING BILLIONS OF IT ON, IT BECOMES A LOT MORE FLUID AND ALSO WITH THAT, THOSE PROPERTIES DEPENDING UPON THE YEAR IT'S BROUGHT ON, THEY START TO DEPRECIATE ALSO.

SO THE VALUE YOU HAVE IN YEAR 1 VERSUS THE VALUE YOU MIGHT HAVE IN YEAR 3 IS MUCH DIFFERENT. WHAT IS EVEN MORE SO TALKING ABOUT TECHNOLOGY EQUIPMENT BECAUSE IT HAS SUCH A SHORT USEFUL LIFE. WE HAVE HEARD THAT SOME OF THESE -- I FORGET WHAT THEY CALL THEM HYPER SCALE DATA CENTRES, I'VE HEARD THAT THEIR LIVES ARE AS SHORT AS ABOUT 3 YEARS.

IT DOES CREATE THIS KIND OF PEAKS AND VALLEYS AS THEY START TO -- THEY WILL REPLACE. WE WILL GET A NEW INVESTMENT.

THOSE AMOUNTS WILL INCREASE AND THEN THOSE WOULD START TO DEPRECIATE. THE HOPE IS THAT ANYTHING AS THINGS START TO DEPRECIATE, THEY'RE ALWAYS ROLLING MORE ON.

WE WOULD NOT SEE AS MUCH OF AN IMPACT FROM THAT.

SO IN RELATION TO -- THAT'S MORE SO ABOUT THE BPP BUT IN REGARDS TO WHAT WE'RE FACING NOW, AS PART OF THIS BUDGET PRIMARILY, IT WAS REAL PROPERTY FOR BUILDINGS ONE AND TWO THAT ROLLED ON. WE ALSO HAD BPP FOR BUILDINGS ONE THROUGH EIGHT. MORE SO FOR BUILDINGS ONE AND TWO. LESS AND LESS THE FURTHER BUILDINGS OUT BECAUSE THOSE AREN'T FULLY -- THOSE ARE STILL IN CONSTRUCTION. THE INTERESTING PART IS REAL PROPERTY DOESN'T GET ABATEMENT UNTIL THE ISSUANCE OF OCCUPANCY.

THE BPP ABATEMENTS IS ISSUED IMMEDIATELY.

THAT IS ONE OF THE THINGS WE WERE MANEUVERING AND LEARNING ABOUT AS THE PROSTRESS WENT ON. WITHIN OUR TAX ABATEMENT AGREEMENTS THERE IS THE MINIMUM VALUE THAT THEY'RE -- MINIMUM TAXABLE VALUE MAINTAINING IS A THRESHOLD ON THIS.

WE SHOULD FEEL RELATIVELY CONFIDENT FOR EACH OF THE BUILDINGS WILL HAVE THIS CERTAIN LEVEL OF TAXABLE VALUE.

I THINK IT'S 200 MILLION PER FACILITY.

BUT AT THIS EXACT MOMENT, WE HAVE PROPERTY THAT IS BEING ADDED THAT WILL BE ABATED IN THE SUBSEQUENT YEAR.

AND THEN WE HAVE PROPERTY ADDED IN THE SUBSEQUENT YEAR AS THE TE ABATEMENTS COME EFFECTIVE. WHEN WE TALK TO CERTAINTY, IT'S MORE SO SO THE HOPE IS THAT BY THE TIME WE GET THEM WE HAVE THAT MINIMUM LEVEL OF CERTAINTY BUT WHEN WE

[01:35:04]

EFFECTIVE. >> IF I CAN ADD TO THAT AS WELL, WE ALSO HAVE THE IMPACT OF THE SB 2 WHICH NEW VALUES ARE SUBJECT TO THE 3.5% CAP BUT THE SECOND YEAR THAT THEY ARE ON, THEY ARE. SO WE HAVE NOT ONLY WHEN THESE BUILDINGS ARE GETTING THE COS AND THEY ARE BECOMING SUBJECT TO ABATEMENT, THEY HAVE TO HAVE THE CO BY DECEMBER 31ST AND THE JANUARY 1 EVALUATION INCLUDING THEM IN THE ABATEMENT OR NOT.

AS OF TODAY, WE HAVE THREE BUILDINGS THAT HAVE CEOS AND THEY WILL RECEIVE THE PROPERTY TAX ABATEMENT COME THE NEXT FISCAL YEAR THAT WE WILL BE BRINGING TO YOU IN '28 BUT WE WILL HAVE BUILDINGS IN MULTIPLE VARIATIONS OF COMPLETION THAT WILL THEN BE CONSIDERED NEW VALUE NOT SUBJECT TO THE 3.5% BUT THEN YOU ALSO HAVE THE SECOND YEAR OF BUILDINGS THAT WERE ALREADY ON THE ROLL SUBJECT TO 3.5%.

SO IT IS TRULY A CHAOTIC CALCULATION AND UNTIL DECEMBER 31ST, WE WON'T KNOW HOW MANY BUILDINGS WILL HAVE THE COS AND HOW MANY WILL NOT BE COMPLETE UNTIL FISCAL YEAR '27, IF THAT. IF WE ANSWERED YOUR QUESTION.

>> I APPRECIATE THAT. IT'S EASY TO GET LOST IN THE WEEDS, BASICALLY, OF WHERE ALL IS THIS HAPPENING AND THE OVERALL MESSAGE IS WE ARE BEING CAREFUL WITH WHAT WE DO BECAUSE THERE ARE SO MANY UNKNOWNS. SO HELPING TO IDENTIFY AND NAME THE UNKNOWNS, WE DON'T KNOW WHAT THE VALUE IS BUT WE CAN SAY WHERE THE UNKNOWN VALUES ARE POTENTIALLY COMING FROM.

IT HELPS ME AND I THINK IT WILL HELP THE PUBLIC.

CAN YOU TOUCH ON SLIDE 9? ONE OF THE THINGS THAT POPPED UP IS THE POP UP CITY HALL. WHAT IS THE POP UP CITY HALL?

>> THIS IS A BRAINCHILD OF MARY AND HER TEAM ON HOW WE CAN BE MORE PRESENT IN THE COMMUNITY. IF YOU DON'T MIND, MAYOR, I WOULD LIKE TO SEE IF SHE COULD COME FORWARD TO BETTER ANSWER

THIS QUESTION FOR US. >> ARE YOU AWAKE?

>> ABSOLUTELY. HELLO MAYOR, COUNCIL.

GOING INTO THE NEXT FISCAL YEAR, WE HAVE A FOUR PRONGED APPROACH INTO HOW WE LIKE TO RAMP UP OUR COMMUNITY ENGAGEMENT INITIATIVES. A PIECE OF THAT WHICH YOU ARE ALREADY SEEING COME BACK ON BOARD AS WELL BUT A PIECE OF THAT IS WHAT WE ARE CALLING AT THIS POINT IS THE TABLETOP FACE-TO-FACE CONNECTIONS AND WE WANT TO MAKE A COMMITMENT TO BEING AT EVENTS THROUGHOUT THE YEAR AND YOU WOULD SEE A TABLE LIKE YOU SEE AT AN EXPO AND THOSE THINGS BUT IDENTIFYING PLACES WHERE WE CAN GO AHEAD AND HAVE THE SET UP AND BE THERE TO INTERACT WITH FOLKS BUT I THINK THAT THE KEY FOR THAT AND WHAT WE ARE EXCITED ABOUT DOING IS DEVELOPING A LITTLE BIT MORE OF A PROGRAM AND A SCRIPT OF WHAT WE DO WHILE WE ARE THERE.

WE WANT TO BE THERE AT THE TABLE AND BE AVAILABLE TO TALK TO FOLKS BT WE WANT TO MAKE THE DIFFERENTIATION BETWEEN WE AREN'T SITTING BEHIND A TABLE, WE ARE STANDING IN FRONT OF IT AND INTERACTING WITH FOLKS AND USING THAT TIME WHETHER WE ARE ARMED WITH IPADS OR THINGS LIKE THAT WHERE WE CAN REALLY HAVE PIECES OF INFORMATION WE ARE LOOKING FOR TO ENGAGE WITH PEOPLE AND GUIDE THAT CONVERSATION TO.

IT'S NOT JUST HI, HERE IS A PENCIL.

WE WANT TO HAVE TIME TO TALK TO PEOPLE AND FIND OUT WHAT IS ON YOUR MIND, WHERE ARE YOU GETTING INFORMATION SO WE CAN GATHER AND HELP BUILD AND GUIDE OUR EFFORTS THROUGHOUT THE YEAR AS WELL.

THAT'S THE BEGINNING OF IT FOR THE FIRST FISCAL YEAR OF DOING THOSE THINGS. A LITTLE BIT OF THE LUNCHEONS DURING THE DAY BECAUSE AS WE KNOW, AS MANY PEOPLE CAN DO THE ACADEMY AT NIGHT AND MANY PEOPLE SAY NIGHTS DON'T WORK FOR ME SO THAT WAS AN EFFORT TO SAY WHAT CAN WE DO DURING THE DAYTIME TO SPEAK TO PEOPLE AND A COUPLE OF OTHER THINGS.

BUT THAT TABLETOP AT LEAST ONCE A MONTH PRESENCE IN THE COMMUNITY WAS THE BEGINNING OF THAT AND AS YOU CAN IMAGINE WE HAVE THE VISION FOR BEYOND THAT. BUT THAT WILL BE NEW TASKS AND NEW YEARS AND WE SEE HOW IT GOES BUT THAT'S WHERE WE WANT TO

[01:40:02]

IT FEELS A LOT MORE AD DRIVEN. IT'S NOT WHERE YOU ARE GETTING TO INTERACT WITH PEOPLE IN A MEANINGFUL WAY SO THAT'S WHERE WE WANT TO MAKE THOSE REAL WORLD CONNECTIONS WITH FOLKS.

>> YOU DON'T KNOW IF IT'S AI OR A REAL PERSON.

>> EXACTLY. DON'T TALK ABOUT AI FLIERS WITH US. WE GET EMOTIONAL ABOUT THAT.

I'M JUST KIDDING. THANK YOU.

>> COULD YOU QUICKLY TOUCH ON THE RATE INCREASES AND WHEN

THOSE GO INTO EFFECT? >> YES.

WE HAVE A 60 DAY NOTICE THAT WE MUST PROVIDE OUR WATER SUPPLY CORPORATIONS AND CUSTOMERS BEFORE THE RATE INCREASES.

THAT RATE WILL GO INTO EFFECT WHEN THEY SEE THE NOVEMBER BILLING. THE OTHER RATES WILL BE EFFECTIVE IN THE OCTOBER 1ST BILLING CYCLE FOR SEWER AND

SOLID WASTE. >> OKAY.

THANK YOU. >> WHILE WE ARE ON WATER SO THAT WE DON'T BOUNCE BACK AND FORTH, THESE RATES HAVE BEEN TALKED ABOUT OVER THE LAST COUPLE OF YEARS.

THIS IS NOTHING NEW. WE KNEW THIS WAS COMING.

THE OPERATION OF THESE WATER RATES AND THE INCREASES, WE KNEW

THEY WERE COMING. >> YES, SIR.

WE WERE NOT AT A PLACE WHERE WE HAD A COMPREHENSIVE RATE STUDY COMPLETE TO BRING TO YOU FOR THIS BUDGET CYCLE WHICH IS WHY WE ARE MAINTAINING WHAT WAS OUR PRIOR RATE PLAN WHICH WAS A 6% INCREASE EVERY YEAR AND WE ARE JUST MAINTAINING THAT AND WE WILL HAVE A COMPLETE NEW RATE STUDY TO BRING TO YOU FOR THE

NEXT FISCAL YEAR. >> ON SLIDE 60, THAT IS THE REBUILD ABI AND WE HAD A FUND BALANCE THAT WE COMPLETELY SPENT. WE SET ASIDE A MILLION DOLLARS A YEAR FOR THE REBUILD PROGRAM. THERE WAS EXTRA FUNDS IN THAT AND WE EXPENDED ALL OF THAT. SO WHEN I ASKED THE QUESTION ABOUT THAT, IT WAS POINTED OUT THAT WE HAD A WAITING LIST, BASICALLY, OF PEOPLE THAT IF WE COULD PROVIDE FUNDING -- IS IT NOT SLIDE 60? IT'S THE REBUILD.

>> ONE MORE DOWN. >> THERE WE GO.

THANK YOU. >> I JUST WANTED TO HAVE A DISCUSSION. IS A MILLION DOLLARS ENOUGH? I DON'T KNOW IF TIM CAN ADDRESS THAT OR WHAT KIND OF WAITING LIST WE ARE LOOKING AT. IS THERE VALUE IN CONSIDERING ADDITIONAL FUNDING FOR THAT OR IS A MILLION DOLLARS SUFFICIENT?

>> MAYOR, COUNCIL. AS YOU CAN SEE, THIS PROGRAM HAS BEEN QUITE SUCCESSFUL LIKE YOU HOPED IT WOULD BE.

AT THE MOMENT, WE PROBABLY HAVE 8-10 BUILDERS WAITING FOR THE NEW PROGRAM TO START. WE HAVE SOME THAT ARE HESITANT BECAUSE THEY KNOW THE FUNDS RUN OUT FAIRLY QUICKLY EVERY YEAR.

I KNOW COUNCILMAN PRICE HAD ASKED THE QUESTION IF MORE FUNDS WOULD BE BENEFICIAL, WELL YES, OF COURSE IT WOULD BE.

WE HAVE BUILDERS THAT WOULD TAKE ADVANTAGE OF IT, I BELIEVE, AND THAT WOULD PUT MORE AFFORDABLE PROPERTIES ON THE GROUND AS WE SO DESPERATELY NEED AT THE MOMENT.

>> THANK YOU. I ASK THE QUESTION BECAUSE IT COULD BE THAT WE HAVE MAXED OUT CAPACITY.

JUST BECAUSE YOU THROW MORE MONEY AT SOMETHING DOESN'T MEAN THAT YOU WILL GET A POSITIVE OUTCOME FROM IT.

BUT IF WE HAVE BUILDERS THAT ARE WAITING ON THE OUTSKIRTS FOR FUNDING TO BECOME AVAILABLE SO THEY CAN PROVIDE AFFORDABLE HOUSING FOR HOMEOWNERS, NOT FOR SOMEONE TO BUY AND TURN AROUND AND RENT TO MAKE BUSINESS PROPERTY OUT OF IT, BUT TO OWN AND LIVE IN, I WANT US TO HAVE THAT DISCUSSION ON IS THERE VALUE ON INCREASING WHAT WE ARE PUTTING INTO THAT FUND.

>> AND WE DO HAVE SAFEGUARDS SO WE MAKE SURE THAT THESE ARE HOMESTEADED AND SINGLE FAMILY HOMES.

I THINK THE PROGRAM HAS BEEN SO SUCCESSFUL AND IF THERE IS MORE OPPORTUNITY TO GROW THIS, I WOULD LOVE TO SEE THAT BECAUSE IT IS DEFINITELY FULFILLING THE GOAL THAT WE WANTED AND IF WE HAVE A WAIT-LIST, IN YOUR OPINION IT WOULD GET MORE HOUSING, I'M DEFINITELY ALL FOR THAT CONVERSATION.

[01:45:02]

>> WE DID DISCUSS THIS WITH TIM AND HIS TEAM DURING OUR BUDGET CONVERSATIONS. WE HAVE MADE A FUNDAMENTAL SHIFT LIKE I MENTIONED BEFORE WE HAVE INCREASED THE BUDGET, THE ACTUAL OPERATING BUDGET, THE FUND BUDGET BY $1 MILLION TO HAVE IT FROM BEING SUBJECT TO AVAILABILITY INTO THE CITY BUDGET. WE HAVE FUNDS THAT ARE UNALLOCATED SO SHOULD COUNCIL WISH TO CONTRIBUTE MORE DURING THIS PEAK DEMAND, I WOULD RECOMMEND WE LOOK AT ADDITIONAL FUNDS COMING BECAUSE IF WE DO INCREASE REBUILD ABOVE 1 MILLION, WE ARE CONTINUING TO GROW THE BUDGET BUT IF THAT IS THE PRIORITY OF COUNCIL, WE ABSOLUTELY CAN DO THAT.

BUT I DO WANT TO RECOMMEND SINCE WE HAVE ALREADY MOVED $1 MILLION, ANY ADDITIONAL WE COULD TEMPORARILY TAKE, WE MAY END UP HITTING THAT CAP AND WE MAY NOT.

>> IF THE DEMAND WENT DOWN. >> CORRECT.

IT WOULD NOT BE IN A REOCCURRING BUDGET ANY LONGER.

>> I AM DEFINITELY FOR THAT. ANY OTHER THOUGHTS OR ANYONE

ELSE? >> SORRY.

IT SAYS 73 COMPLETED. IS THAT SENSE '24? IS THAT THE TOTAL? AND 36 ARE IN PROGRESS? SO RIGHT NOW IF $1 MILLION, IF HOMES WERE OVER BY 13, WE ARE SHORT IF I'M DOING MY MATH. AND I DON'T KNOW WHAT THAT MATH IS BETWEEN 13 AND 1 MILLION. YOU HAVE EIGHT PEOPLE WAITING, BUT 13 WE COULD HAVE DONE MORE WITH MORE FUNDING IS WHAT I'M GETTING AT. SINCE '24.

>> DO YOU HAVE ANY THOUGHTS AS FAR AS AN AMOUNT THAT WOULD BE USABLE WITHOUT BEING JUST EXTREME? BASED ON WHO WAS WAITING IN THE WINGS?

>> CONVERSATIONS WE HAVE HAD, WE HAVE THROWN THE NUMBER $500,000 AROUND AND WE COULD EASILY ALLOCATE THAT.

BUT THAT'S A COUNCIL DECISION, OF COURSE THERE'S ENOUGH INVENTORY LEFT ON THE GROUND AND LOTS AVAILABLE THAT ARE READY TO GO TODAY. WE COULD FULFILL THAT.

WE HAVE ENOUGH BUILDERS AS WELL. >> IF WE DIDN'T SPEND THE EXTRA

500,000? >> THAT IS CORRECT.

OR IF THE 500,000 IS IN THE MIP, THEN IT IS JUST UNSPENT.

IT CAN'T BE REALLOCATED IN THE NEXT FISCAL YEAR.

>> SO I AM ALSO INTERESTED. WE INCREASED OUR SPENDING IN DEMOLITION TO HELP WITH THIS. HOW IS THAT GOING TO AFFECT IT EVEN MORE IF NOW WE HAVE MORE LOTS AVAILABLE? IS THAT GOING TO INCREASE THE DEMAND FOR IT AS WELL?

>> IT'S POSSIBLE. JUST LIKE WITH THE PROPERTY MAINTENANCE INSPECTORS. WE ARE DEMOLISHING SUBSTANDARD STRUCTURES EVERY MONTH, IT SEEMS LIKE.

WE HAVE ASKED FOR AN INCREASE ON THAT AS WELL JUST BECAUSE THE COST OF INFLATION, THE COST OF THE DEMOLITIONS HAVE GONE UP A LITTLE BIT. BUT WE ARE ADDING INVENTORY IT SEEMS LIKE EVERY MONTH. NOT A SUBSTANTIAL AMOUNT, OF COURSE, BUT ENOUGH TO KEEP THE BUFFER THERE FOR THE

BUILDERS TO TAKE ADVANTAGE OF. >> SINCE IT IS MIP, WE COULD HAVE A CONVERSATION IN FEBRUARY OR MARCH IF WE SET ASIDE $500 TODAY AND YOU COME TO US IN FEBRUARY AND SAY WE SPENT THAT AND I HAVE SIX PEOPLE WAITING IN THE WINGS, THEN WE COULD TALK

ABOUT PULLING ADDITIONAL FUNDS. >> YES, SIR.

>> I THINK IT IS A GOOD START. I THINK 500 IS A GOOD START.

>> I 100% AGREE AS LONG AS IT IS TIED TO THE DEMONSTRATED DEMAND.

I GUESS ONE OF THE THOUGHTS I HAD IS DO YOU FEEL LIKE WITH THE INCREASE, DOES IT COMPROMISE ANY CORE SERVICES THAT WOULD BE NEEDED TO ADDRESS THE DEMANDS ON OUR END OR IN GENERAL WITH

ALREADY THE HOUSING? >> I THINK IN MY OPINION, THIS WOULD BE THE PERFECT YEAR TO TRY IT SINCE WE HAVE SOME SURPLUS.

I DON'T THINK IT WOULD TAKE AWAY FROM ANY OTHER PROGRAMS.

>> DIRECTION FOR STAFF? AND THEN WHILE YOU ARE UP THERE, ONE OF THE QUESTIONS I HAD SENT IN WAS WE LOOKED AT THE ANNUAL

[01:50:05]

IS THAT BUILT INTO THOSE PERMITS?

>> YES, SIR. WE LOOKED AT THIS LAST YEAR.

WE GOT IT IN A LITTLE TOO LATE. WE MET WITH A HOMEOWNER ASSOCIATION AND THEY LIKED THE FLAT FEE AMOUNT THAT WE ARE PROPOSING. IT DOESN'T MATTER IF IT'S A SMALLER HOME, 1500 SQUARE FEET. THE AVERAGE IS ABOUT 2000 OR 2100 SQUARE FOOT HOME WHICH IS ACTUALLY SAVING YOU MONEY IF YOU CALCULATE THE SQUARE FOOTAGE. BASED ON TODAY'S FEES.

THEY LIKE KNOWING THAT THEY HAVE THIS ONE FEE TO BUDGET AND OF COURSE TO SAVE MONEY ON PROJECTS, SAY HABITAT FOR HUMANITY OR ANY OF THESE REBUILD, WE DON'T CHARGE FEES FOR THOSE PROJECTS. WE WAIVE THE PERMIT FEES FOR THOSE. WE DON'T WANT TO TAKE CITY MONEY TO PAY A CITY PERMIT FEE. SAME THING WITH HABITAT, WE DON'T CHARGE THEM EITHER FOR THOSE TYPES OF PROJECTS.

SO ANY PROJECTS, WE DON'T CHARGE ANY FEES.

IT DOES NOT AFFECT THEM AT ALL. >> SO WE AREN'T REDUCING THE FEES, WE JUST DON'T HAVE THE FEES ANYWAYS.

>> YES, SIR. THANK YOU, TIM.

>> YES, SIR. >> MORE QUESTIONS?

>> I HAVE A COUPLE. ON THE AIRPORT, IT WOULD BE OPERATING THIS YEAR. THE AIRPORT SHOULD OPERATE FLUSH THIS YEAR. DO WE STILL HAVE ANY COMMITMENT

TO THE AIRPORT? >> GOOD MORNING MAYOR.

DIRECTOR OF TRANSPORTATION SERVICES.

NO, SIR. THEY COMPLETED THEIR COMMITMENT FOR AIRPORT MARKETING AND AIR SERVICE MARKETING THIS FISCAL YEAR. IT WAS A REDUCTION THIS YEAR TO $100,000 BUT IN FY27, THERE IS NO SUPPORT.

>> THANK YOU. ON THE STREET MAINTENANCE, I KNOW WE HAVE A LOT OF MONEY DEDICATED.

HOW MUCH OF THE STREET MAINTENANCE FEE WOULD GO TO THE STREET MAINTENANCE ADVISORY BOARD FOR THEIR PROJECTS?

>> MAYOR, WE INVITE MAX TO HELP US WITH THIS.

I'M GLAD THAT YOU ASKED THAT BECAUSE THAT IS ALSO A QUESTION THAT STAFF HAS FOR YOU ALL IN REGARDS TO THE ADDITIONAL 5 MILLION. HOW YOU WOULD LIKE TO HAVE THAT DECISION BE MADE IN ORDER TO HAVE THAT THROUGH COUNCIL

DIRECTION. >> I KNOW THAT WE HAVE MAPLE THAT WILL EAT UP A LOT OF THAT MONEY.

WHAT I DIDN'T WANT TO DO IS COMPLETELY DEPLETE THE STREET MAINTENANCE FEE JUST FOR MAPLE BECAUSE WE HAVE THE ADVISORY BOARD AND TIMI, THE STREET MAINTENANCE FEE HELPS WITH A LOT OF OLDER STREETS IN THE NEIGHBORHOOD INSIDE THE CITY AND IF WE ARE REMOVING ALL OF THAT MONEY TO JUST ONE OR TWO PROJECTS, I JUST WANT TO KNOW APPROXIMATELY HOW MUCH OF THE STREET MAINTENANCE FEE GOES TO THE STREET MAINTENANCE ADVISORY

TO MAKE THOSE DECISIONS? >> YES, SIR, APPEARED ABSOLUTELY. MY UNDERSTANDING AT THIS POINT IS THAT $5 MILLION WILL BE FORWARDED OVER TO THE STREET MAINTENANCE BOARD FOR THEIR CONSIDERATION.

WE HAVE ONE MORE MEETING THIS YEAR WHICH I THINK WILL BE A WELCOMED PENDING THE BUDGET PASSING AND WILL BE WELCOME FOR US TO INCLUDE ADDITIONAL PROJECTS ON THAT FOR NEXT YEAR'S

PROJECT. >> AND TO MY OPINION, WE TOLD THE PUBLIC THAT'S WHAT WE WOULD BE DOING AND THAT MONEY IS IMPROVING OUR OLDER STREETS SO I JUST DIDN'T WANT TO SEE THAT DEPLETED INTO ONE OR TWO PROJECTS.

I'M REPEATING MYSELF. >> ON THE SLIDE IN FRONT OF YOU, WE DO SHOW WHAT THE '27 PROPOSED PROJECTS ARE SO YOU CAN SEE THERE THAT WE DO HAVE TWO NEIGHBORHOOD WORK ZONES IN

[01:55:02]

THAT IS WHAT IS SLATED FOR '27 CURRENTLY.

>> THE $2 MILLION IS ALREADY ALLOCATED FROM 11.56.

SO THE WILL HAVE 5 MILLION ADDED TO THAT.

SO THAT WILL BE THE REPORT TO CONSIDER FOR NEXT YEAR? POTENTIALLY. THEY MAY LEAVE SOMETHING OUT IN

THE BALANCE. >> YES, SIR.

>> THAT'S WHAT I'M LOOKING AT. $13.839 MILLION.

>> THE BOTTOM TWO PROJECTS ARE ONES THAT THEY HAVE CONSIDERED.

11A, 11B. THAT WAS JUST OVER $3 MILLION.

THAT WAS IN THE LAST MEETING THAT WE HAD AND WHAT THEY CHOSE TO BRING FORWARD. THE REMAINING BALANCE WOULD BE UTILIZED FOR THE REST OF ACCOUNTING PURPOSES.

>> BUT JUST TO MAKE SURE I AM UNDERSTANDING.

WE HAVE THE 8.893 AND THE EXTRA 5 MILLION IS GOING ON TOP OF THAT. SO THEY WILL HAVE 13.893.

CONSIDERING FOR NEXT YEAR. >> THE BALANCE, YES, SIR,

APPEARED. >> THAT IS IN THE TOP SECTION

THE STREET PROJECT FUND. >> I WILL HAVE TO GET BACK ON THE NUMBERS. MY MATH IN PUBLIC IS...

>> $2 MILLION FOR MAPLE NORTH. THAT DIDN'T GO TO THEM OR IT

DID? >> IT DID.

>> AND GRIFFITH ROAD DID NOT GO TO THEM?

>> GRIFFITH ROAD DID NOT GO TO THEM.

>> THEY APPROVED 3.7 AND 1.75 AND THEN THEY WILL HAVE AN ADDITIONAL 13.89. THE BOTTOM PORTIO PLUS THE 5.

>> YES, SIR. >> RIGHT.

RIGHT, THANK YOU. >> APPRECIATE IT.

AND I JUST WANTED TO POINT OUT THAT I'M GLAD WE ARE PASSING ON WITH THIS BUDGET FOR EXAMPLE STREET LIGHTS TO THE DEVELOPER.

AND I GUESS ANY OTHER PROJECTS WILL BE GRANDFATHERED.

BUT THAT HAS ALWAYS BEEN AN ISSUE TO ME THAT WE ARE HAVING TO GO AND PUT IN INFRASTRUCTURE LATER SO THAT WILL BE THEIR RESPONSIBILITY IN THIS NEW BUDGET.

>> YES, SIR. MICHAEL RICE IS OUR CHAMPION FOR THAT AND HE HAS DISCUSSED IT WITH OUR DEVELOPERS AND I KNOW IF YOU HAVE ANY SPECIFIC QUESTIONS HE CAN ADDRESS THOSE

FOR US. >> IT'S ALWAYS FUN TO ASK

MICHAEL RICE QUESTIONS. >> THANK YOU, MAYOR.

MICHAEL RAISED, ASSISTANT CITY MANAGER.

THIS IS A PROCESS CHANGE. CURRENTLY WE SPLIT THE COST FOR INDUSTRY IN LIGHTS IN RESIDENTIAL SUBDIVISIONS AND PART OF THAT IS PICKED BY THE DEVELOPER, PART OF IT IS PAID BY THE CITY. THE PROBLEM IS WE HAVE LOTS OF DIFFERENT PEOPLE THAT ARE INVOLVED IN THE PROCESS INCLUDING THE POWER PROVIDER, THOSE TWO I JUST MENTIONED, THE CONTRACT DOING THE WORK. THERE'S A LOT OF COMMUNICATION REPRESENTATIVES AND ALSO COMMUNICATING WITH THE POWER PROVIDER AND COMMUNICATING WITH THE CITY.

WHAT WE ARE DOING IS WE ARE STREAMLINING THIS.

WE ARE AT THE POINT OF PLATTING. THEY PAID THEIR PORTION TO THE CITY AND IT IS A ONE TOUCH WITH THE CITY THAT THEN WORKS WITH THE POWER PROVIDER TO MAKE SURE THEY ARE INSTALLED AT THE VERY BEGINNING. IT IS FIXED AND THEY PAY IT AND THEY CAN WALK AWAY AND IT BECOMES A CITY RESPONSIBILITY TO

MAKE SURE IT GETS BUILT. >> AND WE AREN'T TEARING UP SIDEWALKS AND STREETS LATER TO PUT THE INFRASTRUCTURE IN.

>> IT GOES IN AT THE BEGINNING IS THE PLAN.

>> THANK YOU FOR YOUR WORK. THAT'S ALL MY QUESTIONS.

COUNCIL QUESTIONS? THERE'S A LOT OF TALK ABOUT THE REVENUE RATE. EVERY YEAR ABOUT THIS TIME YOU START TRYING TO READ WHAT THE DEFINITION OF IT IS AND NOBODY UNDERSTANDS IT. SO DO YOUR BEST.

>> I WILL DO MY BEST. >> AND OF COURSE COME ON MARJORIE DID A GREAT JOB EXPLAINING IT.

THE NO NEW REVENUE RATE IS THE TAX RATE NEEDED TO GENERATE THE SAME AMOUNT OF PROPERTY TAX AS THE PRIOR YEAR NOT INCLUDING ANY NEW VALUES PUT ON THE TAX RULE SINCE THE LAST FISCAL YEAR.

SO IN ESSENCE, IT IS KEEPING THE CITY'S REVENUES FROM PROPERTY TAX THE SAME WITH THE EXCEPTION OF THE NEW VALUES THAT WERE ADDED AND THEN THE NEXT YEAR, THE NEW VALUES ADDED GET APPLIED TO WHAT WOULD BE CONSIDERED YOUR NO NEW REVENUE RATE.

[02:00:02]

>> THANK YOU. SO IF WE WERE TO ADOPT THAT.

>> THAT IS A BIG QUESTION. WHAT I WOULD SAY, AND MARJORIE CAN HELP ME WITH THIS, CERTAINLY PART OF THE ADDITIONAL VALUES IS WHAT WE ARE SEEING AS THAT 7.5 MILLION OF NEW REVENUE.

THAT WOULD BE GOING TOWARD THE STREETS LIKE WE JUST TALKED ABOUT. BUT THAT IS NEW VALUE MONEY.

SO WE ARE TALKING ABOUT WHAT WOULD THE VALUE BETWEEN THE NO NEW REVENUE RATE AND WHAT WE ARE RECOMMENDING.

MARJORIE, DO YOU HAVE THAT NUMBER?

>> I DO. IT WOULD BE AN IMPACT OF ABOUT $3.4 MILLION. WE WOULD BE LOOKING AT TRYING TO FIND THE EQUIVALENT AMOUNT OF PLACES TO CUT.

>> 3.4 WOULD COMPLETELY REMOVE PAY RAISES FOR ONE.

JUST THINKING OF THOSE BIG CHUNKS.

>> MAYBE GO TO FISCAL YEAR '27 GENERAL COMMUNITY FUND.

IT WOULDN'T AFFECT THE MIP BECAUSE WHAT WE ARE TALKING ABOUT PUTTING IN THE MIP IS REVENUES FROM THE NEW VALUES.

THANK YOU APPEARED HERE WE SEE IMPACT TO COMPENSATION COME A HEALTH PLAN, FUNDING AT 3.2. THAT'S A PRETTY GOOD NUMBER.

AND/OR CUTTING SOMETHING FROM. >> IT'S PRETTY SUBSTANTIAL.

>> IT WOULD BE A SUBSTANTIAL INVESTMENT.

>> I'M ALL FOR KEEPING THE TAX RATE AS LOW AS POSSIBLE.

WE FULLY REALIZE THE BENEFITS OF ALL OF THIS GROWTH THEN SIMPLY ADOPTING A FLAT NO NEW REVENUE RATE.

>> THAT'S CORRECT. >> WE KNOW WE HAVE STREETS WE NEED TO MAINTAIN, WE KNOW WE ARE BEHIND THE POWER CURVE ON MARKET DRIVEN REASONS FOR NON CIVIL SERVICE.

WE HAVE TO STAY IN THE MARKET ON PUBLIC SAFETY WHICH, BY THE WAY, I WOULD LIKE TO SEE A 4% FOR MEET AND CONFIRM BUT WE'VE TALKED ABOUT THAT BEFORE. I THINK WHAT I SAW WAS 3% AND MY RECOLLECTION IS IT WAS ABOUT 300,000.

>> THE DIFFERENCE BETWEEN 3% AND 4% WAS $350,000.

>> I DON'T HAVE THAT INFOR INFORMATION.

>> I COULD OPEN THAT FOR DISCUSSION.

TO PIVOT A LITTLE, I HAVE HEARD WITH REGARDS TO THIRD PARTY BUILDING INSPECTION, I WOULD LIKE TO KNOW HOW THAT IS GOING.

I'M GETTING MIXED FEEDBACK BOTH FROM MEMBERS OF THE COMMUNITY AND AS SOMEONE WHO IS BUILDING A PROJECT RIGHT NOW.

FEEDBACK FROM CONTRACTORS. AND AGAIN I'M NOT TRYING TO AMBUSH YOU. DO YOU KNOW HOW MUCH WE HAVE? THIRD PARTY ACCOUNTS WORKING, ARE WE OUTSOURCING TOTALLY?

>> NOT TOTALLY. IN HOUSE WE HAVE THREE INSPECTORS. WE HAVE ONE BUILDING INSPECTOR AND TWO PLUMBING AND MECHANICAL INSPECTORS AND THE REST IS OUTSOURCED. LIKE YOU HAVE AS FAR AS THE RESULTS. SOME OF IT IS GETTING USED TO NEW PEOPLE OUT THERE IN THE FIELD LOOKING AT THEIR PROJECTS AND THE OTHER HALF IS ABOUT INTERPRETATION AND HOW WE INTERPRET THINGS BASED ON WHAT THEY ARE USED TO INTERPRETING.

THEY'VE BEEN VERY GOOD AT LETTING US MAKE THOSE CALLS AND THEN IT'S A LEARNING CURVE FOR THEM TO LEARN OUR WAYS HERE JUST LIKE WITH ANY NEW PERSON COMING IN.

SO FAR, IT HAS BEEN QUITE SUCCESSFUL EVEN THOUGH IT'S A LITTLE BIT EXPENSIVE. THERE IS JUST THAT LEARNING CURVE AND THE COMMUNITY GETTING USED TO THEM OUT IN THE FIELD.

>> YOU THINK THIS IS WHAT THE FUTURE LOOKS LIKE?

>> I HOPE NOT I HOPE NOT. I HOPE IT IS INTERNAL STAFF.

TRYING TO BRING IT BACK IN HOUSE AND THEN YOU BUILD THE RELATIONSHIP WITH THEM AND YOU CAN'T REALLY DO THAT WITH A THIRD PARTY. YOU GET THE MORE ONE ON ONE AND YOU CAN ACTUALLY DO SOME INSPECTIONS.

IT KEEPS THE PROJECT MOVING FORWARD AND WITH THIRD PARTY YOU CAN'T BECAUSE IT WILL COST YOU MORE.

IT GIVES THIS STABILITY TO HAVE HOMEOWNERS OR HAD A GAS LEAK AND

[02:05:06]

WITH THIRD PARTY WE DON'T HAVE THE ABILITY RIGHT NOW AND IT

WOULD HAVE TO BE THE NEXT DAY. >> CAN I JUMP IN ON INSPECTIONS? HAVE WE LOOKED INTO REMOTE VIRTUAL INSPECTIONS?

>> WE DO THAT NOW AND THERE ARE SOME COMPANIES THAT SPECIALIZE IN IT. BUT SAYING GAS LINES AND WATER HEATERS AND SOME SAFETY SENSITIVE INSPECTIONS.

YOU DON'T WANT TO DO THAT. YOU WANT TO PHYSICALLY SEE IT AND LOOK ALL AROUND TO MAKE SURE IT IS SAFE TO RE-ENERGIZE THE SYSTEM. REPLACING THE WATER LINE, WE HAVE DONE IT. IT'S NOT THE TECHNICAL WAY TO DO IT. WE CAN PINPOINT WHERE THEY ARE AT TO MAKE SURE IT'S THE INSPECTION AT THE RIGHT ADDRESS.

SAVE SOME TIME AND I'VE EVEN DONE IT ON THE WEEKEND TO HELP GET GAS BACK ON. WE DO LOOK AT THAT.

>> TIM, HOW MANY INSPECTORS WOULD YOU SAY WOULD BE A NOMINAL AMOUNT FOR A CITY OF OUR SIZE AND GROWING?

>> I THINK THE STAFF LEVEL WE HAVE NOW IS SUFFICIENT.

MAYBE EVENTUALLY IF WE INCREASE IN DEVELOPMENT, MAYBE AN INCREASE IN A BUILDING IN AN ELECTRICAL SECTOR BECAUSE TWO EACH IS SPREAD A LITTLE BIT THIN BUT ON A NORMAL YEAR, IT IS USUALLY SUFFICIENT. IF WE CAN GET FULL STAFF, WE

WILL BE GREAT. >> WHAT IS THE DIFFERENCE BETWEEN WHAT WE HAVE TODAY AND FULL STAFF?

>> WE WOULD HAVE -- OF COURSE I MENTIONED WE HAVE ONE BUILDING INSPECTOR AND TWO MECHANICAL INSPECTORS.

WE WOULD HAVE TWO BUILDING INSPECTORS COME A THREE PLUMBING MECHANICAL INSPECTORS COME INTO ELECTRICAL INSPECTORS.

>> WE ARE LESS THAN HALF STAFFED.

IS THERE ANYTHING PRECLUDING ANYBODY FROM HIRING ANYBODY ADDITIONAL? IF WE ARE LESS THAN HALF STAFFED, I ASSUME WE HAVE MONEY IN THE BUDGET FOR IT?

WHY ARE WE NOT? >> IT'S WHAT WE ARE USING TO PAY FOR THE THIRD PARTY SERVICE AT THE MOMENT.

BUT THE DEMAND ON THE SKILLED TRADES FOR THE DATA CENTERS ALL AROUND IS WHAT IS KILLING US RIGHT NOW.

WHERE WE ARE TAKING MEASURES TO TRY TO ATTRACT.

>> HIRED TO COMPET WITH PAY. >> THAT WILL BE A CHALLENGE.

>> THE CONTRACTORS ARE HURTING AS WELL.

>> THANK YOU. >> ANY MORE QUESTIONS?

>> I HAVE A QUESTION. DO WE KNOW WHO WE ARE GOING

WITH? >> WE ARE IN THE SCORING PROCESS WITH OUR GROUP RIGHT NOW. WE HAVE ELIMINATED IT TO THE TOP

THREE. >> DO WE THINK WE WILL BE DONE

WITH THAT IN THIS FISCAL YEAR? >> WE HOPE TO HAVE OUR SELECTION

MADE. >> SO NO.

THANK YOU. THAT'S IT.

>> QUESTIONS? >> -- A, IN LAST YEAR'S BUDGET CONTRIBUTED TO STREET MAINTENANCE. IS THAT NOT THE CASE FOR THIS

YEAR? >> I BELIEVE THAT WAS AN AGREEMENT THAT WAS MADE IN 2023, 2024.

I BELIEVE IT WAS AN ADDITIONAL AGREEMENT FOR $5 MILLION MAYBE AND SO TWO PROJECTS HAVE BEEN COMPLETED AND THERE'S A LITTLE BIT OF THAT LEFT. BUT CURRENTLY, THERE ARE NO PROJECTS SPECIFICALLY ALLOCATED. IT'S MY UNDERSTANDING THAT THEY HAVE TO IMPROVE THEM FIRST SO IT JUST HAS NOT COME TO THEM YET.

>> I THOUGHT THEY MADE SOME KIND OF COMMITMENT.

>> NO, SIR. I DO HAVE A MEETING WITH DCOA THIS COMING WEEK ABOUT INDUSTRIAL COMMERCIAL

INFRASTRUCTURE. >> OKAY.

ONE THING. YOU MENTIONED IT, BUT IF YOU COULD JUST EXPAND A LITTLE BIT ON IT.

THE $13.5 MILLION FOR THAT RETIREMENT FUND WAS ORIGINALLY

[02:10:03]

CAN YOU GIVE THE EXPLANATION FOR WHY WE HAVE PULLED THAT?

>> YES. WE HAVE BEEN WORKING WITH A JOINT REVIEW COMMITTEE THAT INCLUDES MEMBERS OF THE FIRE RETIREMENT BOARD AND CITY REPRESENTATIVES SO WE'VE BEEN WORKING ON THAT SINCE NOVEMBER, I BELIEVE.

WE EVALUATED MULTIPLE VARIATIONS OF PLAN CHANGES, CONTRIBUTIONS, THE IMPACT ON THE PLAN FOR WHAT THE BOARD WANTED TO SEE AND WHAT FIREFIGHTERS WANTED TO SEE. AND THEN MAKING THE FUND MORE STABLE AND HEALTHIER AND OVERALL INCREASING THAT FUNDING RATIO.

ALL OF THE EVALUATIONS, WE ARE LOOKING AT CHANGING.

WE WOULD LIKE TO SEE THE IMPACT OF THAT CONTRIBUTION OF THIS YEAR OTHERWISE YOU END UP WAITING ANOTHER TWO YEARS FOR THE EVALUATION. THAT IS THE REASON THAT WE

CHANGED THE TIMING. >> WHAT IS THE APPROXIMATE PERCENTAGE OF THE FUND RIGHT NOW VERSUS AFTER THE INJECTION?

>> THAT QUESTION IS A LITTLE BIT MORE COMPLICATED.

WE ARE ALSO CHANGING ONE OF THE ASSUMPTIONS.

THAT WILL CHANGE TO 7% SO I DO NOT HAVE THAT NUMBER AVAILABLE BUT WE WILL BE BRINGING THIS ON SEPTEMBER 10TH FOR A MORE

DETAILED REVIEW. >> DOES ANYONE ELSE HAVE

QUESTIONS? >> YOU HAVE TALKED ABOUT INCREASING POLICE AND FIRE AND GOING BACK TO THE NO NEW REVENUE ADOPTION AT 3.5 MILLION. WHAT WOULD BE THE CHANGE IN

GOING TO 4% IN THAT IMPACT? >> I LOOKED THAT UP AND IT'S ABOUT $265,000 WHICH WOULD GET IT TO 4%.

>> I WOULD LIKE TO SEE US DO THAT.

$265,000. OKAY.

>> ANY FURTHER QUESTIONS? I HAVE JUST ONE MORE.

AND ALL THE AREAS WE'VE TALKED ABOUT AND ALL THE DEPARTMENTS, HOW MANY EXPENSES WENT DOWN FROM LAST YEAR?

>> HOW MANY EXPENSES? >> DID ANY EXPENSES GO DOWN FROM

LAST YEAR? >> IT IS OUR PRACTICE WHENEVER WE ARE BUILDING OUR BUDGET THAT WE ASK THE DEPARTMENTS FIND LINE ITEMS WITHIN THEIR CURRENT BUDGETS TO FIRST OFFSET WHAT THEY ARE ASKING FOR BEFORE THEY COME AND ASK FOR NEW AMOUNTS.

THAT IS NOT A NUMBER THAT I HAVE READILY AVAILABLE BUT I KNOW FROM MY OWN EXPERIENCE, I DID TRY TO CUT THE THINGS THAT WE DID NOT CHANGES IN DUES AND FEES AND IT CAN BE AS SIMPLE AS THAT SO OUR STAFF IS DILIGENT ABOUT TRYING WHAT WE ARE PROPOSING IN

A BUDGET IS ACCURATE. >> I'M NOT TRYING TO PUT YOU ON A SPOT WITH INFLATION AND EVERYTHING, OUR EXPENSES ARE NOT

GOING DOWN. >> ABSOLUTELY.

AND JUST A COMMENT ON THAT, SOMETIMES I THINK ABOUT THE NO NEW REVENUE RATE AS BEING ADOPTING BUDGET WITHOUT ANY INFLATION. IT REALLY IS RELYING ON NEW VALUE TO BE ABLE TO FUND THE BUDGET.

>> JUST ECHOING THE MAYOR'S SENTIMENT.

JUST LOOKING AT POSSIBLY NEEDING FUTURE GENERAL FUNDS, THE SELF-INSURANCE FUND, ALL OF THESE THINGS ARE SIGNIFICANT COST TO US. NOT HAVING THE ABILITY TO SCALE IT UP, THAT IS A REAL CONSIDERATION.

I THINK IT IS SUPER IMPORTANT FOR US AT THIS TIME.

IN THE SAME KIND OF SENTIMENT THERE.

[02:15:12]

WE ARE AT A VERY... WE ARE ON A VERY SOLID GROUND KNOWING THE FUTURE HERE SO IT MAKES IT VERY DIFFICULT.

>> GOING BACK TO THE FIRE QUESTION.

IF WE ARE LOOKING AT PLUS 4%, WHAT THAT ACTUALLY TURNED INTO IS A SIX PLUS PERCENT INCREASE IN PAY.

THAT IS THE EFFECTIVE PAY INCREASE THAT FIRE WOULD SEE?

>> I BELIEVE IT BUMPS IT UP TO 3.4 WHERE CURRENTLY WITH WHAT WE PROPOSED, IT IS 2.5 AND SO IT INCREASES SIMILARLY BY ABOUT A

PERCENTAGE POINT. >> AND THAT IS AN AVERAGE OF ALL POSITIONS. THAT WOULD ALSO GET LESS BASED ON WHERE THEY ARE WITH THE PAY SCALE.

>> I'M COMFORTABLE WITH THAT. THE 6% IS UNSUSTAINABLE IN MY VIEW BUT GOING FROM THE VALUES THAT YOU JUST MENTIONED, I CAN

SUPPORT THAT. >> I THINK IT IS A GOOD TIME TO GO BACK AND REVISIT WE AREN'T ASKING FOR MORE EMPLOYEE CONTRIBUTIONS ON THE HEALTH INSURANCE PROGRAM.

THE CITY WILL COVER THE INCREASE.

>> YES. YES.

>> THAT IS IMPORTANT. >> I AGREE WITH YOU.

I THINK THERE IS AN INCREASE ACROSS THE BOARD AND WE WOULD LIKE TO SEE SOME CUTS SOMEWHERE. I THINK YOU WOULD HAVE TO GO LINE BY LINE OF IS THIS A NICE TO HAVE RIGHT NOW OR DO WE NEED IT? I MEAN COME ON AS A TAXPAYER, I DON'T WANT TO PAY MORE TAXES AND WE ARE LOOKING AT THE TAX BURDEN IS NOW HEAVIER ON BUSINESSES AND BUSINESS OWNERS ARE THE ONES THAT ARE GOING TO PROVIDE JOBS AND THEY WILL BE THE ONES THAT BRING IN MORE OF THE TIME. I DON'T NECESSARILY THINK IT'S GREAT TO MAKE BUSINESSES BECAUSE WE PAY TAXES NOT JUST HERE TO THE STATE, TO THE FEDERAL, AS A BUSINESS OWNER, YOU CAN GET TAXED TO DEATH. I WOULD LIKE TO SEE SOME CUTS TO

THIS OVERALL. >> I THINK ABOUT IT AND I THINK IT SHOULD START WITH AND AT THE BEGINNING WE OUTLINED THE OUTCOMES AND THE PRIORITIES THAT WE AS A COUNCIL HAVE AND I THINK YOU AND YOUR TEAM HAVE DONE A GREAT JOB OF UNDERSTANDING PRIORITIES RATHER THAN JUST ACROSS THE BOARD CUTS THAT ARE IN THE UNITY OF WHAT WE HAVE TASKED YOU GUYS WITH.

I DEFINITELY THINK IT IS WORTH OPENING A CONVERSATION BUT EXAMINING DIFFERENT THINGS THAT WE HAVE TALKED ABOUT.

THE VACANCIES COME OVERLAPPING SERVICES AND THINGS LIKE THAT, THAT IS WHAT I WOULD LIKE TO SEE BUT I THINK YOU AND YOUR TEAM HAVE DONE A GOOD JOB OF THAT. ONE OF THE WAYS THAT I LOOKED AT THE BUDGET, I APPRECIATE PUTTING EMILY ON THE SPOT AND GETTING HER TO DEFINE IT, BUT I WAS READING IT AND I KNOW WE HAVE HAD A LOT OF FEEDBACK FROM THE PUBLIC ON IT NOT FEELING AS IF THEY ARE GETTING A BREAK AND IT WAS ALMOST LIKE I FELT LIKE I WENT BACK IN MY CHILDHOOD AND THOUGHT OF A PIECE OF A PIE.

LOVED MY GRANDMOTHER'S PIES GROWING UP, BUT DEPENDING ON THE WAY THAT YOU CUT IT, YOU ARE STILL COMPLETING THE PIE WHETHER IT IS A LARGER SLICE OR A SMALLER SLICE.

IT IS STILL CONSUMING THE PIE JUST DEPENDING ON HOW BIG THE PIE WAS THAT YOU STARTED WITH. IT STILL MEETS THE END RESULT.

BUT I APPRECATE JUST THE BACKBONE OF UNDERSTANDING WHETHER IT WAS THE FIRE PENSION OR DIFFERENT SERVICES THAT WE HAVE OFFERED. I THINK YOU AND YOUR TEAM HAVE DONE AN OUTSTANDING JOB OF TRYING TO MEET US WHERE WE ARE AND THIS IS CONVERSATION ONLY SO I THINK IT IS EASY TO SOMETIMES

[02:20:04]

>> I THINK THIS IS THE DIRECTION FROM STAFF AND I UNDERSTAND WHAT THE REQUEST ON CUTS IS, BUT I THINK IT IS OUR DUTY IF WE WANT TO SEE SOMETHING CUT, WE NEED TO MAKE THOSE SUGGESTIONS TO THEM.

THEY HAVE BEEN THROUGH IT AND BEEN THROUGH IT AND BEEN THROUGH IT. I THINK THAT THIS WOULD BE THE TIME THAT YOU WOULD COME FORWARD WITH THAT.

I'M NOT DISAGREEING WITH YOU AT ALL.

BUT I HAVE BEEN PRETTY EXTENSIVE AND ONCE YOU START TRYING TO DO THIS OR THIS, I'M ALWAYS GOING TO GO BACK TO MY CLICHE OF IF I HAD TO TURN RIGHT, I COULD HAVE TURNED LEFT AND WE STILL NEED TO OFFER THE SERVICES TO CITIZENS THAT WE ARE TRYING TO DO HERE AND TAKE CARE OF THOSE PEOPLE AND WE ARE HAVING NATURAL GROWTH PLUS A BUNCH OF GROWTH. SO JUST TRYING TO MANEUVER THIS IS HARD AND I APPRECIATE WHAT STAFF HAS DONE.

NOT TO SAY THAT WE CAN'T GO BACK THROUGH THIS AND LOOK FOR CUTS BEFORE THE FINAL READING. I'M NOT AGAINST THAT AT ALL.

BUT I THINK THAT IS FOR US TO LOOK AT OURSELVES.

>> I JUST WANT TO REMIND YOU THAT THE PREBUDGET WORKSHOP, WE TALKED ABOUT THE ECONOMIC CONDITIONS THAT WE HAVE BEEN THROUGH FOR THE PAST TEN YEARS. SOME OF THOSE CUTS, WE HAVE STILL NOT RESTORED. THAT IS WHY RESTORE WAS THE NUMBER ONE PRIORITY IN SETTING THESE BUDGET PRIORITIES HERE.

DEFERRED MAINTENANCE IS SOMETHING THAT WE HEAR FROM YOU, WE HEAR FROM THE PUBLIC. IN MY OPINION, IF YOU ARE WANTING TO SEE SIGNIFICANT CUTS, THAT HAS TO COME THROUGH REDUCTION IN SERVICE DELIVERY. BECAUSE LIKE THE MAYOR SAID, WE ARE DOING THE SAME THING WE DID LAST YEAR BUT IT COSTS US MORE JUST BECAUSE OF INFLATION. SO IF YOU WANT TO SEE A SIGNIFICANT IMPACT TO REDUCTION OF EXPENSES IN THE BUDGET, THAT, IN MY OPINION, REQUIRES A HARD DECISION OF A REDUCTION IN A SERVICE LEVEL AND I CONTINUE TO HEAR FROM THE PUBLIC THAT THEY WANT MORE SERVICES FROM THE CITY SO IT'S A VERY DIFFICULT

QUANDARY. >> AND HOW MANY NEW HOMES ARE WE PICKING UP TRASH FOR THAN WE WERE LAST YEAR IN PROVIDING SEWER? EVERY YEAR, THAT NUMBER IS GROWING. IF YOU DON'T PICK UP SOMEONE'S TRASH, I PROMISE YOU THEY ARE NOT HAPPY.

>> AND WE CAN TAKE -- I'M ALL FOR THAT WE CAN CUT WHATEVER.

THAT IS FINE BY ME. I AM A FAIRLY CONSERVATIVE BUDGETER. DEFERRED MAINTENANCE IS EXACTLY HOW WE GOT INTO THIS PROBLEM. STARTING 25 YEARS AGO.

KEPT BEING DEFERRED, KEPT BEING DEFERRED, KEPT BEING DEFERRED, AND NOW WE HAVE TO COME UP WITH SOLUTIONS LIKE THE STREET MAINTENANCE FEE AND ALL THOSE THINGS TO FUND CASH INTO THOSE ROADS. NOW WE ARE IN THE BOOM CYCLE OF THE ECONOMIC BUSINESS AND THIS WILL NOT LAST.

SO WE NEED TO BE TAKING ADVANTAGE OF THIS BUT THE KEY COMPONENT OF THAT, IF WE GO TELL THE CITIZENS HERE'S I WOULD LOVE TO SEE PROOF OF WHAT WE HAVE FUNDED, WHAT IS THE END RESULT, WHAT DOES IT LOOK LIKE.

SOME OF THE VISUALS THAT WE SHARED EARLIER WERE INCREDIBLE.

I LOVE SEEING THE DOLLAR AND THE PERCENTAGE BREAKDOWNS.

IN TERMS OF CENTS, WHERE IT GOES.

I THINK THE MISNOMER IS WE ARE SPENDING MONEY ON FRIVOLOUS

[02:25:01]

I THINK IT WILL ONLY BUILD TRUST AND EQUITY WITHIN THE CITY AND WE STILL HAVE TO, LIKE LYNN SAID, WE HAVE TO BE ABLE TO GIVE REAL TANGIBLE UNDERSTANDING OF HOW THAT MONEY IS CHANGING, HAS BEEN VERSUS WHERE WE ARE HEADING AND IT WILL CONTINUE TO BE A BONUS FOR US.

>> THERE'S ALSO THE QUESTION OF THE CONVENTION CENTER.

>> COMING UP WITH ANY TYPE OF ACCURATE COSTS FOR SANDY STREET.

>> HAVE WE STARTED THE ASSESSMENT.

>> I WENT THROUGH AN UNDERGROUND FUEL FARM AND AN ABOVE GROUND FUEL FARM AND IT TAKES A LONG TIME AND THERE'S A LOT OF ENVIRONMENTAL STUFF. HAVE WE STARTED EVALUATING ANY

OF THAT? >> I KNOW THAT WE HAVE AN ESTIMATE OF ABOUT $39 MILLION AND THAT WAS MAYBE ABOUT A COUPLE OF YEARS OLD. CAN YOU ADDRESS THAT FOR US,

PLEASE? >> AND JUST FROM A PLANNING PERSPECTIVE, I'M ASSUMING PART OF THAT REHAB IS ALL OF THOSE THINGS. WHERE WOULD WE PUT IT?

>> THE DETAILS HAVE NOT BEEN NAILED DOWN AS OF THIS POINT.

AS FAR AS THE SANDY STREET FACILITIES, WE HAVE A VERY OLD FACILITY DOWN ON SANDY STREET AND IT INCLUDES ALL OF THE SERVICES EXCEPT FOR PARKS AND RECREATION FOR THE MOST PART AND STORM OWNER. SO WE HAD A CONSULTANT COME AND WORK ON THE LOCATION FOR THE FACILITIES.

WE DID A CITYWIDE SEARCH, THIS COMPANY DOES THIS ON A REGULAR BASIS AND THEY WENT THROUGH ALL THE DIFFERENT PROPERTIES AND A FULL EVALUATION AND THEY DETERMINED THAT THE CURRENT FOOTPRINT IS THE BEST CENTRALLY LOCATED AND ALLOWING SERVICES TO GO FROM THE CENTER OF THE CIRCLE TO ALL DIFFERENT PARTS OF THE CITY. THE WAY THAT WOULD ACTUALLY BE MAIN FACILITY WILL BE THE WATER SERVICE, WASTE WATER COLLECTION. YOU HAVE GOT YOUR TRAFFIC FIELD SERVICES, WHICH WILL BE THE STOP SIGN SIGNALS, RADIO SHOP, HAS SOME INFORMATION OUT THERE, FACILITIES HAS AN OFFICE OUT THERE. WE HAVE SOME CONSTRUCTION INSPECTORS OUT THERE. OBVIOUSLY FLEET IS OUT THERE.

THEIR COMPLETE FACILITY WHICH INCLUDES THE FUELLING FACILITY AND ALL THE STREETS AND SOLID WASTE.

$40 MILLION TO GO THAT, BASED UPON THE DOLLARS AND THAT IS PROBABLY 18 MONTHS OLD. PRICES HAVE GONE UP.

THIS IS NOT SOMETHING WE CAN INCORPORATE INTO THE BUDGET.

IT WILL HAVE TO BE SOMETHING THAT IS PROGRAMMED OUT BUT ALSO APPROVED. WE HAVE TO MAKE SURE WE HAVE

THE FUNDS AVAILABLE. >> WHEN WE LOOK AT THAT, REAL QUICK, WHEN WE LOOK AT THE CHANGE OR THE IMPROVEMENTS THAT ARE THERE, I KNOW IT HAS BEEN MENTIONED IN THE PAST ABOUT THE POSSIBILITY OF HAVING AN ABOVE GROUND FUELLING CLOSER TO P.D. OR ON THE GROUND OF P.D. THERE IS LOTS OF VEHICLES THAT HAVE TO GET FUELLING AND WHEN THEY ARE WITH THE LAW ENFORCEMENT CENTER, DOWNTOWN, SOUTH DOWNTOWN, IT'S NOT THAT FAR TO SANDY STREET. NOW THEY ARE GOING ACROSS TOWN.

I DIDN'T KNOW IF THAT IS SOMETHING THAT YOU WERE LOOKING AT WHEN WE DO MAKE THE CHANGES ON SANDY STREET INCLUDING SOP FUNDING, IF THAT IS BETTER LONG-TERM COST WISE TO HAVE A SECOND FUELLING LOCATION FOR P.D., VERSES GOING ACROSS TOWN.

[02:30:02]

>> THAT IS UNDER THE UNPREMIER UMBRELLA OF FLEET. THEY ARE LOO INCLUDING THE ABILITY TO FUEL UP, NOT JUST AT THAT LOCATION BUT HAVING REMOTE ACCESS ALL OVER TOWN.

THAT WILL BE EVALUATED AND THE RECOMMENDATION WILL BE BROUGHT

BACK BY FLEET THEMSELVES. >> THANK YOU.

>> YES, SIR. >> SEE THIS MANAGER?

>> YES, SIR. MARJORY AND I HAVE WORKING ON SOME OPTIONS ON ANY OF THE SOLUTIONS FOR THE FIRE PAY QUESTIONS SO I THINK WE NEED TO KNOW IF THAT IS SOMETHING THAT COUNCIL IS WANTING US TO MAKE A CHANGE IN THE BUDGET? FROM 3% TO 4%. THE CRUX OF OUR NEGOTIATIONS IN MEET AND CONFER WAS ABOUT THE CAP.

LOOK AT STABILIZING THE RAISES 6% OR MORE FOR A MULTIPLE YEARS IN A ROW. THE CAP WAS A PRIMARY STICKING POINT IN THOSE NEGOTIATIONS. THIS YEAR, THE PEER CITY WAGES DI DID NOT GO UP AS MUCH AS IN THE PAST. IF THERE IS 3, 4%, I THINK THE AVERAGE IS 3.5% OF A RACE ARAIE AND THE GOAL WAS TO CREATE A CAP ON THE WAGES INCREASING AT A RACE OF 6% OR MORE YEAR-OVER-YEAR. SO A CAP IS NOT NECESSARILY A CONCERN FOR THE COMING '27 YEAR.

>> THREE EXPRESSED SUPPORT FOR THAT.

>> YEAH. I WOULD DEFINITELY EXPRESS THAT

SAME SENTIMENT FOR SURE. >> WHERE WOULD THAT ADDITIONAL FUNDING FOR THAT RAISE COME FROM?

>> AT THIS POINT, WITHOUT LOOKING, WITH A LOT OF DEPTH, MY RECOMMENDATION IS I BELIEVE THAT WE PROVIDED A $525,000 TRANSFER INTO THE HEALTH FUND I THINK WAS THE NUMBER AND WE WOULD REDUCE THAT, THE TRANSFER WAS MEANT TO CREATE MORE AVAILABILITY IN THE HEALTH FUND KNOWING THAT THE GRANT FUND THAT WE ARE RECEIVING FEDERAL AND STATE ARE STARTING TO BE REDUCED REDUCE AND COULD BE AN INCREASED DEMAND. THAT PROBABLY WON'T BE AN ISSUE THIS YEAR BUT WANTED TO CREATE A BETTER BUFFER SO MY RECOMMENDATION AT THIS POINT WOULD REDUCE THE TRANSFER INTO THE HEALTH FUND BY THERE ARE 264,000, THAT GIVES US ABOUT A $250 OR 20,000 TRANSFER THOUSAND -- 250,000 TRANSFER.

THE HEALTH FUND IS DEPEND ON GRANT AND THOSE COULD BE AREAS WE WILL NEED TO INCREASE LOCAL SUPPORT AND TRANSFERS IN THE

FUTURE. >> IF WE ENCOUNTERS THAT IN THE NEXT FISCAL YEAR WE COULD SUPPLEMENT IF WE COULD?

>> M.I.P. ISN'T REOCCURRING. .

>> I UNDERSTAND. JUST ONE YEAR IF IN THE EVENT SOMETHING HAPPENS AND WE THINK IT MIGHT HAPPEN AND NEEDS -- NEED FUND TO GET US THROUGH THE YEAR.

>> THAT IS CORRECT. >> ARE THERE ANY CONCERNS IN MAKING THAT CHANGE? THE COUNTY IS INCREASING THEIR SUPPORT FOR THE PUBLIC HEALTH DEPARTMENT AND THAT HAS BEEN A PERCENTAGE POPULATION WISE. IT IS A TAILOR -- COUNTY HEALTH DISTRICT AND SO COVER JUST NOT JUST THE CITY BUT THE COUNTY.

SUPPORT FOR OUTSIDE OF THE CITY AND THE CITY PROVIDE MORE.

>> I BELIEVE IT IS AN OPERATIONAL BUDGET PERCENTAGE.

>> IF THERE IS GOING TO BE PUSH BACK FROM THE COUNTY IF WE REDUCE WHAT WE ARE PUTTING IN THERE IF THEY WOULD COME BACK AND SAY WE WILL REDUCE WHAT WE PUT IN THERE.

>> MY UNDERSTAND IS THE COUNTY'S PORTION IS OPERATIONAL AND THIS WAS A VOLUNTARY INCREASE FROM THE TRANSFER FROM THE CITY TO CREATE MORE CAPACITY IN THE FUND BALANCE.

>> YES. THE COUNTY'S PORTION IS JUST A PERCENTAGE BASED ON PROJECTED EXPENDITURES.

SO JUST REDUCING THE GENERAL FUNDS SUBSIDY FOR THAT DOES NOT IMPACT THEIR OVERALL TOTAL EXPENDITURES IN THE FUND.

IT IS JUST A REVENUE DECREASE PER THEM.

>> IT WAS SOMETHING WE DID PROACTIVELY FOR THE HEALTH FUND

[02:35:03]

TO NOT DROP TOO FAR >> I WOULD SAY JUST SAY, I WOULD LIKE TO SEE THE RESULTS BECAUSE IF WE ARE MORE BEHIND FOR NON-CIVIL SERVICE PAY, NEXT FISCAL YEARS WE MIGHT NEED TO ALLOCATE MORE IN THAT REGARD. SO FOR ME, I'M MORE AT A PLACE OF LET'S PAUSE ON KEEPING IT AT THE 3% FOR FIRE.

I KNOW WE ARE ALSO -- I HATE TO BRING IT UP BUT WE ARE KICKING IN THE 13.5 MILLION FOR THE FISCAL YEAR AS WELL.

FOR '26. SO FOR ME, I THINK WE SHOULD PAUSE AND WAIT ON THAT. TRY TO STABILIZE THE INSURANCE

FUND. >> THE STUDY WOULDN'T AFFECT PAY UNTIL FISCAL '28. WE ARE TALKING ABOUT FISCAL'

27. >> THAT CORRECT.

THE COMPENSATION STUDY WILL DIRECT US FOR FISCAL YEAR '28.

>> ANYONE ELSE. >> WHAT'S THE DIRECTION?

WITH REGARD TO THE FIRE PAY? >> I'M GOOD WITH THE 4%.

I AGREE. I THINK -- I DON'T LIKE THE JUST CUT ACROSS THE BOARD BECAUSE THAT'S KIND OF TOO ARBITRARY. I THINK IF I HAD A LINE BY LINE ITEM, LOOKING AT $300,000 ON PARK BENCHES AND TRASH CANS OF IS THAT EVERY ONE OF THEM? OR IS THAT SOME OF THEM GOOD FOR ANOTHER YEAR? IF YOU GOT DOWN TO THAT DETAILED YOU COULD FIND THAT 3.4 MILLION TO GO WITH THE -- IF WE GOT INTO THAT DETAIL, WHICH I THINK THE STAFF HAS, BUT I THINK HAS GOT TO BE SOME IN THERE THAT ARE NICE TO HAVE STUFF. THAT I THINK WE CAN.

I CAN'T ANSWER THAT QUESTION. ONLY THE STAFF LIVES AND WORKS IT EVERY DAY. I'M GOOD WITH THE 4%.

THE SENTIMENT IS I FEEL LIKE IT IS JUST AN INCREASE TO BAH INCREASE. THERE ARE TIMES YOU CAN SAY, HEY I DON'T KNOW IF WE NEED TRASH CANS AT PARK THIS YEAR.

ION TI DON'T KNOW THAT. I DON'T.

THAT IS JUST WHERE I'M AT. WE JUST INCREASE TO INCREASE SOMETIMES. I DO APPRECIATE YOUR WORK.

I HATE TO PUT IT ON THE BURDEN OF CITIZENS.

I'M GOOD WITH THE 4%. I SUPPORT.

>> ANOTHER SIGNIFICANT INCREASE TO THE BUDGET WAS THE EXPANDED HOURS AT THE REC CENTERS AND LIBRARIES AND SO I DIDN'T HEAR

ANY QUESTIONS. >> I WAS ABOUT TO ASK ABOUT

THAT. >> SO CAN COUNCIL GIVE US

FEEDBACK ON THAT? >> I WAS ABOUT TO ASK ABOUT

THAT ONE. >> WITH THE DIFFERENCE IN

EXPENDITURE AND THAT. >> AROUND 300.

I DON'T KNOW -- I DON'T REMEMBER EXACTLY.

>> STAFF'S PERSPECTIVE IS THIS HAS BEEN A HUGE COMMUNITY SERVICE EXPANSION AND YOU HEARD THE NUMBERS OVER 20,000 IN EACH FACILITY AND THE LAST FEW MONTHS OVER #,3,000 FOR PAST YEAR. BUT THIS IS AGAIN AN OPTION WE ARE RECOMMENDING EXPANDING THE HOURS SO WE CAN CONTINUE TO EXPAND THE SERVICE. BUT THIS IS COMING AT A COST OF $620,000. WE BELIEVE THAT THE CITIZENS APPROVED AND VOTED FOR THIS AND SO IT IS PART OF OUR COMMITMENT TO THEM TO CREATE THE ACCESS AND AVAILABILITY TO THEM.

>> DO WE HAVE ANY INFO ON FEES? FOR RENTALS OR FACILITIES AT

THE REC CENTER SO FAR? >> WHAT WAS THAT?

>> DO WE HAVE ANY INFORMATION ON THE FEES THAT HAVE BEEN

GENERATED? >> I DON'T HAVE THAT INFORMATION AVAILABLE. LESLIE, CAN YOU SPEAK TO THAT?

>> WE WERE ABLE TO PULL THE FEES THAT WE HAVE FOR THE $30 NON-RESIDENT AS WELL AS $190 FOR PASSES.

I DON'T HAVE THE NUMBER AT THIS POINT TO PULL FOR RESERVATIONS BECAUSE WE DID IN THE START TAKING RESERVATIONS

[02:40:02]

TO PRESENT ON THAT. >> WELL, JUST GOING TO POINT OUT THAT THE DIFFERENCE IN THE REC CENTERS IS WE ARE THREE DAYS A WEEK OPENING THREE HOURS EARLIER.

THAT IS THE DIFFERENCE. SORRY, SIX DAYS A WEEK OPENING

THREE HOURS EARLIER. >> AND STAYING OPEN LATER, I

BELIEVE. >> NOT ACCORDING TO --

>> FOR RECREATION IT IS STAYING OPEN SIX DAYS A WEEK, FOR AN EXTRA THREE HOURS. AND AS WELL AS A FULL-TIME PERSON TO REALLY DEDICATE ON PROGRAMMING SO YOU DON'T HAVE THE FRONT DESK PEOPLE TRYING TO PROGRAM FOR THE LIBRARY, IT'S STAYING OPEN IN THE EVENING HOURS.

TO BE ABLE TO ADDRESS THE NEEDS IN THE EVENINGS.

>> OK. >> LESLIE IS THERE ARE 6:00

A.M. FOR THE REC CENTRE? >> YES, THERE IS.

FOR THE FITNESS ROOM AND GYM, NOW THAT WE HAVE A WALKING TRACK INDOORS, THAT IS WHERE WE ARE SEEING THE MOST REQUEST FOR AND THE FITNESS ROOM. I DON'T EXPECT IT TO THE AFFECT THE MULTI PURPOSE ROOM OR THE GYM.

FOR PEOPLE TO WALK INSIDE BEFORE WORK.

IN THAT ASPECT. >> OK'ING THANK YOU.

>> I WAS GOING ASK JULIE A QUESTION ON THE LIBRARY.

THE 9 AM, BECAUSE I NOTICED IT WAS A SURPRISE TO ME, THE UPTICK IN LIBRARY CARDS AFTERNOON DIFFERENT THINGS FROM A LOT OF ADULTS IS THAMAIN REA WHY?

>> SO ADULTS CAN USE IT WHEN THEY GET OFF OF WORK.

>> THAT IS USEFUL. THANK YOU.

>> SURE. >> JULIE, CAN I ASK YOU SOMETHING REALLY QUICK. SORRY.

>> SPEAKING OF THE REC CENTRE...

>> FOR THE LIBRARY, I DON'T THINK THRE WAS A HEAT MAP SHOWING THE USE OF THE LIBRARY BY HOUR.

JUST WONDERING IF SHIFTING LIKE INSTEAD OF 10:00 A.M., MAKING 1 TO 9 P.M. ION I DON'T KNOW -- I DON'T

KNOW HOW MUCH DEMAND THERE WAS? >> WE ARE IN THERE.

>> OK. >> I SAID NO, THE LEFT COLUMN.

I SA I KNOW -- I SAID NO, SO WE HAVE TRAFFIC NUMBERS FOR WHEN YOU ARE CLOSED?

>> THAT MUST BE CUSTODIAL OR PARKS.

>> YES, SIR. THE TRAFFIC NUMBERS FOR THOSE HOURS WOULD BE EITHER STAFF THAT HAD TO STAY LATE TO WORK IN THERE OR THE CUSTODIAL GOING IN THERE TO CLEAN.

>> IS THIS LIKE AN ELECTRONIC COUNTER?

>> YES. >> COUNTING EMPLOYEES COMING IN

AN OUT? >> YES, IN AND OUT OF

INDIVIDUAL ROOM. >> JUST AS FAR AS FINDING THE FUNDING WITHOUT TAKING IT ALL -- JUST LOOKING AT THAT FROM THE PERSPECTIVE, WHAT LYNN WAS ASKING ABOUT AND EXPANDING INTO THE EVENING WITHOUT TAKING ALL OF IT FROM THE HEALTH DEPARTMENT. MY GUESS IT'S NOT LIKE HALF AN HALF BECAUSE WE NEED TO HIRE THE PEOPLE.

IF WE WILL HAVE THE EXPANDED HOURS.

SO EITHER WE EXPAND THE HOURS AND HIRE THE PEOPLE OR DON'T EXPAND THE HOURS AND WE CAN TALK ABOUT SHIFTING POTENTIALLY BUT WE TAKE IT FROM HEALTH OR LIBRARIES OR REC CENTER.

IS THAT'S WHAT I'M HEARING? >> I'M JUST -- NO.

I DON'T THINK THOSE ARE ONLY OPTIONS.

I'M TRYING TO COME UP WITH SOME SOLUTIONS FOR YOU AND I BELIEVE THAT THE EXPANSION OF THE HOURS AND THE SERVICES PROVIDED WE HAVE SEEN ARE GREATLY APPRECIATED AND UTILIZED BY THE RESIDENTS. I WOULD FEEL MORE COMFORTABLE REDUCING THE TRANSFER TO THE HEALTH FUND, KNOWING THAT THAT

[02:45:01]

OR THE OPERATIONS OF THE HEALTH DEPARTMENT.

IT'S JUST A MATTER OF THE UNKNOWN FOR THE HEALTH DEPARTMENT IS THE GRANT AVAILABILITY OF FEDERAL AND STATE RESOURCES. SO WE WERE TRYING TO ADD A BUFFER TO THAT WHEN WE HAD SOME ADDITIONAL REVENUES.

BUT IT WILL NOT AFFECT THEIR OPERATIONS.

THIS AFFECTS DIRECTLY OPERATIONS AND SERVICE DELIVERY

TO OUR RESIDENTS. >> IF WE HAVE AN EXCESS IN SALES TAX WE CAN TAKE FROM M.I.P. OR SOMETHING, THE 525 TO PUT IN THE HEALTH BUDGET? IF WE ARE NEEDING IT GOING INTO

'28? >> YES.

YES, SIR, WE COULD LOOK AT YEAR END WHEN IT COMES TO SALES TAX OVERAGE AND WHEN WE PRESENT THAT TRANSFER TO YOU WE CAN LOOK AT THE OTHER FUNDS AND DETERMINE IF SOME OF THOSE NEED ADDITIONAL SUPPLEMENTAL INFUSIONS.

>> IN '28 WE GET THE COMPENSATION STUDY RESULTS SO

THAT COULD DRASTICALLY CHANGE? >> THAT WILL BE ONGOING.

AND THE 525 IS -- COULD BE A ONE-TIME INJECTION.

>> CORRECT. >> TO MAKE UP FOR NOT PUTTING IT IN AS PART OF THIS YEAR'S BUDGET?

>> MARJORY, DO YOU HAVE ANY SUGGESTION?

>> I DON'T WANT TO PULL FROM PUBLIC HEALTH WITH THE NARRATIVE THAT WAS PROVIDED ABOUT REDUCED FUNDING BUT INCREASING RELIANCE ON LOCAL FUNDING, AND INSTEAD OF GRANT AND PUBLIC FUND FROM THE STATE AND TO FEDERAL GOVERNMENT.

>> SO ONE OTHER OPTIONS TO ENTERTAIN ONE TO REDUCE THE ONE-TIME TRANSFER OF THE PROPERTY TAX.

YOU KNOW, IN REGARDS TO BEING JUST ABOUT $260,000 OUT OF THAT ENTIRE $7.5 MILLION THAT IS JUST ANOTHER OPTION ON THAT IF COUNCIL WANTS TO DIRECT IT TOWARDS THAT INSTEAD.

>> CORRECT ME IF I'M WRONG, SOUNDS LIKE MAYBE YOU ALL COULD BRING US SOMETHING SEPTEMBER 10TH THAT SAYS HERE'S SOME HARD

OPTIONS TO LOOK AT FOR -- >> MAYBE YOU COMBINE A FEW OF

THOSE. >> FOR THE FUNDING AND WHAT'S FLEXIBLE BECAUSE LIKE, LIBRARIES, REC CENTER, EITHER WE DO IT OR WE DON'T BECAUSE WE ARE HIRING PEOPLE OR NOT HIRING PEOPLE. THAT'S THE EXPENSE.

IT'S NOT JUST LITTLE BIT EXTRA ELECTRICITY WE CAN SLICE INTO.

WHAT WOULD WE -- WHAT ARE SOME OPTIONS WE CAN LOOK AT CUTTING IN ORDER TO INCREASE THE FIRE COMPENSATION 3% TO 4%.

SO WE CAN DISCUSS THAT ON SEPTEMBER 10TH AND FORIGURE OU

HOW DO WE MAKE THAT WORK? >> YES, I THINK THE EXTRA TIME WILL BE BENEFICIAL. THAT WAY WE KNOW WE ARE MAKING

A MORE ADVISED RECOMMENDATION. >> RIGHT.

>> SO ALSO JUST SOME DIRECTION THEN AGAIN, BACK TO SANDY STREET. WOULD YOU LIKE STAFF TO BEGIN THE PROCESS OF DOING THE RESEARCH AND POSSIBLE PLANNING FOR A POTENTIAL C.O. ISSUES AND IN THE FUTURE OR OTHER FORM -- ISSUANCE IN THE FUTURE? I DON'T THINK THIS WILL BE SOMETHING WE CAN DO AT ONCE. IT WILL BE A FAZED PROCESS BECAUSE OF THE NUMBER OF EMPLOYEES AND EQUIPMENT THAT ARE HOUSED OUT OF THAT FACILITY TO COMPLETELY VACATE WOULD BE VERY CHALLENGING. SO I THINK THAT IS ALSO PART OF THE RESEARCH WE WOULD LIKE TO DO IS A FAZED APPROACH AND WHETHER WE ALSO CAN USE SOME OF OUR FUTURE ONE-TIME FUNDS TO ADDRESS SOME OF THE PHASES. WE JUST KNOW THAT IT IS A VERY LARGE PROPERTY THAT NEEDS QUITE A BIT OF WORK AND IMPROVEMENT AND IF WE CONTINUE TO IGNORE IT, IT'S NOT GOING AWAY.

SO NOT THAT WE ARE GOING TO BE RECOMMENDING A C.O. BUT WE DO BELIEVE IT IS TIME WE START PUTTING TOGETHER A PLAN TO ADDRESS THAT CITY SERVICE FACILITY.

>> I WOULD LIKE TO SEE THAT. >> I WOULD LIKE TO SEE IT IN

[02:50:03]

I WOULD LIKE TO SEE US HAVE A COMPREHENSIVE IDEA WHAT THE FACILITIES NEED AND WHAT DOES THE NEXT TEN YEARS LOOK LIKE?

>> WE DO HAVE A FACILITY ASSESSMENT INCLUDED IN THE BUDGET UNDER PART OF THE PLANNING NICHE YA PITCH TO -- INITIATIVE TO HAVE THAT CONDUCTED.

>> WE WILL NEED TO ADD SANDY STREET TO THAT IN?

WHAT I'M HEARING? >> I BELIEVE IT IS.

>> WE WANT TO MOVE THE CHAIR BACK THERE UP FRONT?

>> YES, THE FACILITY ASSESSMENT IS FOR ALL OF OUR -- I WILL SAY OUR MAIN BUILDING BECAUSE THERE IS OVER 500 BUILDINGS IN OUR FULL PACKAGE. THIS IS ROUGHLY THE TOP 100 TO 150 BUILDINGS. IT IS GOING TO BE MORE OF THE H-VAC, ENVELOPE THINGS. IF ANYTHING HAS A VALUE OF ABOUT $5,000 OR MORE, SO WE WON'T BE EVALUATING CARPET OR PAINT OR SMALLER THINGS LIKE THAT.

SO IT IS ALL OF OUR MAJOR BUILDINGS, AIRPORTS, CITY HALL, EVERYTHING THAT PEOPLE ARE GOING IN AND OUT OF ALL DAY, PART OF THIS IS BECAUSE OF DIFFERED MAINTENANCE.

SOME OF THESE BUILDINGS EVEN SINCE THE 20 -- THINK THE 2014 HEALTH STORM DIDN'T HAVE THE ROOF REPLACEDED AFTER THAT DAMAGE SO THAT IS INCORPORATING THAT AS WELL.

ONE OF THE THINGS THAT WAS MENTIONED ONLY ONE SLIDE, IS

T >> -- SINCE YOU OPENED THAT CAN

OF WORMS. >> I'M IN THE TOUCHING THAT ONE! -- I'M NOT TOUCHING THAT ONE.

>> JUST NEGLECTED THE ROOF. >> ONE OTHER REQUIREMENT THAT CAME TO OUR ATTENTION IS THE A.D.A. SELF-EVALUATION.

THAT ALSO HAS BEEN REQUESTED BE FUNDED AT $100,000.

THAT ALSO GOES SIMULTANEOUSLY WITH THE FACILITIES BECAUSE WE ARE ALSO HAVING TO DO AN A.D.A. ASSESSMENT SO THOSE WILL BE HAPPENING ROUGHLY SIMULTANEOUSLY AT THE SAME TIME TO MAKE SURE WE ARE MEETING ALL OF THE FEDERAL AND STATE GUIDE LINES BECAUSE WE IF WE DON'T WE ENDANGER LOSING FEDERAL

FUNDING. >> AND A.D.A. WOULD INCLUDE

INGRESS AND REGRESS AND -- >> NOT JUST INFRASTRUCTURE.

IT IS ALSO EMERGENCY PLANS. IT'S YOUR WEBSITE.

IT'S HOW PEOPLE GET IN AND OUT OF BUILDINGS.

IT'S THE FIRE ALARMS WHETHER IT IS LIGHTS AND SOUNDS, RESTROOMS, ELEVATORS, IT TOUCHES EVERYTHING.

>> INCLUDING STREETS, SIDEWALKS, CROSSING,

CROSSWALKS, EVERYTHING. >> SO BACK TO LYNN'S QUESTION AND I DON'T KNOW THAT I FULLY UNDERSTAND IS SANDY STREET INCLUDED IN WHAT YOU ARE TALKING ABOUT DOING?

>> YES, SIR. >> SO WHAT IS YOUR QUESTION ABOUT SANDY STREET IF WHAT SHE IS DOING IS ALREADY --

>> I THINK IT IS GOING TO THE NEXT STEP AFTER THE EVALUATION AS FAR AS IF WE WERE TO ESEQ SEQUENCE THIS. WE DO HAVE PRELIMINARY NUMBERS BUT THOSE ARE SEVERAL YEARS OLD.

IN ORDER TO COME UP WITH A PLAN WE WOULD NEED TO ENGAGE WITH AN ARCHITECT OR ENGINEERING FIRM SO THAT IS PART OF WHAT WE

MIGHT NEED TO DO. >> WOULD THAT NEEDS TO BE LIMITED TO SANDY STREET OR LOOKING AT THE DEFICIENCIES WE

RUN ACROSS SYSTEM WIDE? >> I THINK IS WHAT WILL BE PART OF THE CREATION OF OUR C.R.P. ONCE WE HAVE THE ASSESSMENT DONE WE CAN FEED IN WHICH REPLAN TO DEVELOP THE NEXT YEAR. SPECIFICALLY THE EMPHASIS ON SANDY STREET WE KNOW IS IN NEED OF IMPROVEMENT.

AND WE NEVER GET THERE IF WE NEVER START SO JUST CHECKING TO SEE THE COUNCIL'S PULSE ON STARTING.

>> I HEAR HER SAY IS THE FACILITY ASSESSMENT IS MORE OF A GENERAL ASSESSMENT OF THE ROOF, THE WALLS, THE H-VAC SYSTEM, BIG TICKET ITEMS OF THE BUILDINGS AND TOWNS WERE A LOT OF CITIZENS AND EMPLOYEES GO EVERY DAY.

SANDY HAS BEING SO OLD THAT IT IS A FULL TEAR DOWN REPLACE IN PHASE MUCH MORE OF A DIFFERENT PROJECT THAN WHAT --

>> YES, SIR. >> YES.

>> THANK YOU. >> I WOULD AGREE.

>> THAT IS WHAT I WAS MISING. THANK YOU.

>> I DON'T KNOW IF THIS IS THE TIME.

[02:55:02]

WHAT WE PROPOSED WAS ONLY REPLACING WHAT HAS ALREADY FAILED. IT IS NOT IN THE FULL

BENCHESES, TRASH CANS. >> THANK YOU.

>> ON SANDY STREET, WE ARE TALKING ABOUT PHASES AND WHATNOT BECAUSE WHAT IS CRITICAL NOW IS FUEL.

RIGHT. >> THAT IS THE PARTICULAR INFRASTRUCTURE THAT WE THINK COULD FAIL.

MOST QUICKLY. IF THAT HAPPENS, WE WOULD HAVE TO COME TO YOU WITH AN EMERGENCY SOLUTION.

>> OK. BECAUSE I MEAN I UNDERSTAND THE FACILITY, EVERYTHING IS OLD. THE FLEET SHOP IS HORRIBLE.

I MEAN SO THERE ARE SOME THINGS THAT YOU WOULD WANT TO ADDRESS FIRST FOR SURE. WE WOULD NEED TO HAVE SOME TYPE OF ORDER TO DO THIS. I KNOW WE ARE TALKING ABOUT ALL FACILITIES BUT I THINK WE ALSO HAVE TO JUST LOOK AT SANDY STREET, AND CONJUNCTION WITH THE OTHER ONES, HAS TO GET IN THE GAME PLAN ON JUST THE FACILITIES ON SANDY STREET.

A LOT OF PRIORITY WHAT NEEDS TO BE ENDO DONE NOW.

>> GOING BACK TO WHAT LESLIE WAS TALKING ABOUT.

BACK TO WHAT LESLIE WAS TALKING ABOUT DOING, IS THERE VALUE IN HAVING THAT EVALUATION OF SANDY STREET IF WE ARE DOING THIS MORE IN DEPTH, EVALUATION OF SANDY STREET SEPARATE FROM WHATTER WITH PROJECT IS. SEEMED LIKE WE ARE DOING

UNNECESSARY REDUNDANT WORK? >> MY ANSWER IS YES THEY NEED TO HAPPEN SIMULTANEOUSLY. THE ASSESSMENT WILL HAPPEN REALLY QUICK. WE WILL HAVE ANSWERS IN SESSION TO EIGHT MONTHS. T THEY I THINK THAT WILL DOOR -- THAT WILL GUIDED THE LONG-TERM DISCUSSION WHAT WE ARE DEALING WITH AND THIS ASSESSMENT WILL HELP US PUT TOGETHER NOT ONLY THE C.I.P. 1; FIVE, TEN, 20 YEAR PLAN BUT ADDRESS THE SANDY LANE ISSUE IN HELPING GUIDE THAT CONVERSATION AS WELL. I THINK THEY BOTH NEED IN HAPPEN BUT THE ASSESSMENT WILL BE HAPPENING MUCH FASTER AND THAT INFORMATION WOULD THEN COULD ALSO BE FED INTO THE FULL SANDY DISCUSSION. AND BOTH I THINK WE WOULD HAVE ANSWERS FOR -- I DON'T WANT TO SPEAK FOR SANDY BUT WILL BE HELPFUL IN F.Y. 28 CONVERSATION.

>> HOW LONG DO YOU THINK THE CONVERSATION WILL TAKE?

>> I THINK OUR GOAL TO HAVE SOME O KIND OF PLAN OR COST ESTIMATE BY TIME WE DISCUSS PHYSICAL '28, ESPECIALLY IF IT HAS C.O. OR ONE TIME MONEY ATTACHED TO IT BUT JUST GETTING THE PLANT TOGETHER COULD TAKE US TO THE BETTER PART OF THE

YEAR. >>

>>. SO DO YOU THINK WE WILL HAVE BY THE BUDGET WORKSHOP, FEBRUARY TIME FRAME WHEN WE HAVE THE

PREEARLYING BUT WEEK? >> WE WOULD HAVE ASSESSMENT.

>> SAID SIX TO EIGHT MONTHS THAT ASPECT OF IT?

>> I DO THINK WE SHOULD HAVE THE FACILITY ASSESSMENT

COMPLETE BY THEN. >> OK.

GOOD. OK.

>> WHAT DOES SANDY STREET HAVE EFFECT ON THE BUDGET THIS YEAR?

>> I DON'T KNOW THAT IT DOES. WE ARE NOT ASKING ANYTHING THIS YEAR BUT IS THIS SOMETHING YOU WOULD LIKE US TO WORK ON?

>> I THINK WE ARE GOING TO HAVE TO BE.

>> THERE IS ONE ITEM, RED BOX, SAYS MAY HAVE TO HAPPEN SOONER.

WE DON'T NEED TO LOOK AT '27? NOT SOONER?

>> OUR CONCERN AND THE REASON WHY WE DID NOT PUT IT IN THE M.I.P. LIST FOR '27 IS BECAUSE IF WE ARE GOING TO ADDRESS SANDY STREET IN THE COMING YEAR OR TWO, LOOKING AT THE PLACEMENT OF WHERE THE FUEL ISLAND WOULD NEED TO GO AND WOULD THAT CHANGE WITH A CHANGE IN RECONFIGURATION AND NOT WANTING TO SPEND FUNDS ON SOMETHING WE DIDN'T HAVE

INCLUDED IN A MASTERPLAN. >> OK.

>> YEAH. THE TIMING IS JUST BAD ON THE FUEL FARM ITSELF, THE UNDERGROUND TANKS ARE 40 TO 50 YEARS OLD. THEY REACHED THEIR END OF LIFE.

WE DID LOSE AN UNLEADED TANK OPERATING EARLIER THIS YEAR BECAUSE OF SUSPECTED -- WAS ESSENTIALLY AIR LEAKS BUT WE HAVE -- WE JUST TOOK IT OUT OF SERVICE.

WE HAVE TWO OTHER UNLEADED TANKS AND TWO DIESEL TANKS IN THE GROUND. ALL ARE FUNCTIONING.

CURRENTLY AND WITHIN T.C.E.Q. COMPLIANCE, BUT THE

[03:00:03]

SO WE DO HAVE A QUOTE OF ABOUT $1.3 MILLION TO REPLACE THOSE AND PUT IT ABOVE GROUND. WE WOULD DO THAT IN ON CON TULLIZATION, KNOWING THE -- IN CONSULTATION, AND WE HAVE GOT PRELIMINARY PLANS. SO WE COULD SITE THAT IN AN AREA THAT WOULD BE ABLE TO WORK AROUND THE SANDY STREET DEVELOPMENT AS THIS HAPPENS IN THE FUTURE AND BUT YEAH, THE TIMING IS JUST BAD. WE WANT TO MAKE SURE THAT CITY ADMINISTRATION HAD THAT KNOWLEDGE AND YOU GUYS HAD THAT KNOWLEDGE, GOING INTO THIS DISCUSSION THAT THIS IS A POTENTIAL THAMAY HAVE TO PULL TRIGGER.

IF WE HAVE AN ISSUE THAT IS NOT CURRENTLY HAPPENING RIGHT NOW

BUT THE AGE HAS US NERVOUS. >> IS THERE ANYTHING ON THING BUT SIDE THAT WE NEED IN FUND RELATED TO YOUR MORE IN-DEPTH ANALYSIS OF SANDY STREET OR IS THAT BUILT INTO?

>> NO, SIR. THIS IS JUST MORE DIRECTION THAT WE COULD BEGIN THE RESEARCH AND INVESTIGATION.

I WILL CONFIRM. >> I DON'T SEE HOW WE CAN MOVE FORFORWARD WITHOUT DOING AN INVESTIGATION.

AND BEING PREPARED FOR THAT. >> THANKS.

OK. >> ANYTHING ELSE?

>> COULD WE GO TO SLIDE PAGE 45, AND COULD WE GET JUST A BREAKDOWN FOR EXPLANATION PURPOSES.

1.32 MILLION FOR I.T. CONTRACTUAL SERVICES.

>> SO BY THE END OF THE '26 YEAR, THAT IS ABOUT WHAT WE WILL HAVE SPENT IN CONTRACTUAL SERVICES AND SO WE ARE GOING THROUGH THE I.T. TRANSFORMATION PROJECT.

WHAT POSITION WE NEED TO ATTEMPT TO HIRE AND FILL IN-HOUSE VERSES SPECIALTIES THAT MAY BE SKILL SETS WE DON'T NEED FULL TIME OR WE CAN CONTRACT OUT.

BECAUSE WE ARE IN THE PROCESS OF THAT DISCOVERY PERIOD NOW WE DID NOT WANT TO PROVIDE FOR A FULL STAFFING MODEL IN THE PAYROLL AS WELL AS HAVE A $1.3 MILLION IN CONTRACTUAL SERVICES BECAUSE THAT WOULD BE DUPLICATING EFFORTS.

SO WHAT WE DID IS WE DETERMINED TO PUT IN WHAT WAS SPENT IN '26 AND KNOWING THAT SHOULD WE FILL THESE POSITIONS IN HOUSE, WHICH IS OUR GOAL AND OUR FIRST EFFORT, THEN WE WILL TRANSFER FROM PROFESSIONAL SERVICES INTO PAYROLL KNOWING WE ARE NOT DUPLICATING OUR BUDGET FOR PAYROLL FOR VACANCY AND NEW POSITIONS VERSES OUTSOURCED CONTRACTUAL SERVICES.

>> THANK YOU. >> ALL YOUR QUESTIONS ANSWERED?

>> I BRELIEVE SO. THE OTHER ITEM THAT HAS BEEN CLARIFIED FOR US IS THAT WE ARE GOING TO LOOK FOR $264,000 IN BUDGET CUTS TO FUND 1% INCREASE IN FIRE PAY.

THAT ACCURATE? >> YES.

SO WE CAN DO THAT TODAY AND COME BACK TOMORROW AND PRESENT THAT TO YOU OR IF YOU WOULD LIKE, WE CAN PRESENT THAT TO YOU IN THE SEPTEMBER 10TH SECOND READING.

>> GOOD WITH SEPTEMBER 10TH. >> SEPTEMBER 10TH WORKS FINE

FOR ME. >> AGREED.

>> AGREED. >> THAT WORKS FOR ME.

. >> TO THE END OF THE MEETING SO IF THERE IS ZONE CHANGE THEY DON'T HAVE TO SIT THROUGH GOING BACK AND FORTH WHILE THEY ARE WAITING FOR PROPERTY ZONING

QUESTIONS TO BE ANSWERED. >> MARJORY, ANY OTHER DIRECTION OR CLARITY THAT YOU THINK WE NEED.

>> ALL RIGHT. SO ANOTHER BIG DECISION POINT FOR COUNCIL, WE SHOULD HAVE LUNCH SERVED QUICKLY.

IF YOU WANT TO TAKE A BREAK. >> WE WILL TAKE A ONE HOUR

BREAK. >> ALL RIGHT.

>> YOU SURE? THAT WAS INDECISIVE.

[03:05:02]

[LAUGHTER] >> I KNOW IF FOOD SHOWS UP HOW

YOU WILL BE! >> DIDN'T EVEN FINISH THE SENTENCE! [LAUGHTER]

>> YOU WERE ALREADY LOOKING AT ME IT.

SEATED. >> ARE THERE ANY MORE QUESTIONS

ABOUT TODAY'S PRESENTATION. >> HAVE A CORRECTION ON THE STREET MAINTENANCE ADVISORY BOARD SLIDE.

I HAD ASKED QUESTIONS ON THE FLY OF MAX AND HE UPDATED ME WITNESS WE WENT ON -- WHEN WE WENT ON BREAK.

I DON'T KNOW WHAT SLIDE NUMBER IS AND I ASKED ABOUT THE $5 MILLION IN ADDITION AND HE CORRECTED THAT THE $5 MILLION IS BUILT INTO THE $8 MILLION SO WENT BE $13 MILLION.

$8 MILLION IS GOING BACK IS THE STREET MAINTENANCE.

>> APPROXIMATELY $8 MILLION INSTEAD OF THREE.

>> AND NOT THE $13. I WAS ADDING THE FIVE TO THE EIGHT AND IT'S ALREADY INCLUDED IN THE EIGHT.

>> THANK YOU FOR THAT. ANYONE ELSE.

[3. Ordinance (Consider on First Reading): Receive a Report, Hold a Discussion and Public Hearing, and Take Action on Approving the Revised 2025-2026 Budget]

>> WE WILL MOVE TOO ITEM THREE. CONSIDERATION OF THE FIRST READING ADOPTION OF REVISED 25/26 BUDGET.

I WILL OPEN UP PUBLIC HEARING. ANYONE WHO WOULD LIKE TO SPEAK FOR OR AGAINST ITEM THREE. PLEASE COME FORWARD AND GIVE

YOUR NAME FOR THE RECORD. >> TO ONE.

I WILL CLOSE THE PUBLIC HEARING.

ANY UP FOR THE DISCUSSION? ACCEPT A MOTION AND SECOND?

>> THERE IS NOTHING SPECIAL ON THE MOTION FOR THIS ONE?

>> NOTHING SPECIAL ON THIS. >> NOT ON THIS ONE.

>> THIS IS FIRST READING. >> MOVE FOR APPROVAL.

>> SECOND. >> MOTION BY COUNCILOR MAN BEARD AND SECOND BY COUNCILMEN BAILEY.

THAT IS THAT CORRECT? READY TO VOTE.

[4. Ordinance (Consider on First Reading): Receive a Report, Hold a Discussion and Public Hearing, and Take Action on Approving the Proposed 2026-2027 Budget]

>> ALL YES, MOTION CARRIES. >> ITEM FOUR.

CONSIDERATION ON THE FIRST READING ADOPTION OF THE PROPOSED 2026/27 BUDGET. AT THIS TIME I WILL EPP O UP THE PUBLIC HEARING. IS THERE ANYONE WHO WOULD LIKE TO SPEAK FOR OR AGAINST ITEM FOUR.

PLEASE COME FORWARD AND GIVE YOUR NAME FOR THE RECORD.

>> TAMMY FOEGELE. MAYBE BETTER ADDRESSED ON NUMBER FIVE. THE ONLY DISCUSSIONS MADE ARE HOW TO REVAMP THE CURRENT PROPOSED BUDGET AMOUNT.

NOT REALLY DOING ANYTHING TO THE TAX RATE.

AND I'M VERY GLAD THAT WE FINDLY HAD A PUBLIC DISCUSSION ABOUT THE NONNEW REVENUE RATE. I BELIEVE IF OTHER CITIES IN TEXAS IS CAN START WITH THE NO NEW REVENUE RATE AS COMING UP WITH BUDGET THEN /* LINE /* /* ABELENE CAN, TOO.

RAISING THE TAXES AND WHILE IT WAS MENTIONED, THAT THE TAX RATE IS LOWER THAN IT HAS BEEN IN TEN YEARS IT IS THE HAS BEEN INCREASE -- THE TAXES WE PAY, OVER THE LAST TEN YEARS.

SO THAT IS THE DIFFERENCE BETWEEN THE NO NEW REVENUE COMPARED REVENUE-TO-REV FEW, VERSES RATE-TO-RACE.

I'M GLAD TO KNOW THAT WE CAN ADJUST THE BUDGET.

WITHOUT HAVING TO START WITH THE PAY RAISES OF OUR CIVIL AND NON-CIVIL SERVANTS AND THERE IS SOME WIGGLE ROOM WITH HEALTH CARE FUND TO -- THE DISCUSSION IS WHETHER OR NOT YOU ARE GOING TO ALLOW CITIZENS TO KEEP THEIR MONEY IN THEIR POCKETS AND BUSINESSES OR GOING TO TAKE THEIR MONEY AND USE IT ON SERVICES THAT YOU THINK THE CITIZENS WANT TO PAY THROUGH HIGHER TAX RATES. I THINK MOST CITIZENS WILL SAY PLEASE REDUCE IT. WE HAVE INFRASTRUCTURE ISSUES THAT ARE NOT RESOLVED. WE DON'T HAVE FACILITY MAINTENANCE. WE HAVE A LOT OF THINGS TO RERAMP THAT ARE NOT TAKEN CARE OF RAISING THE TAXES FOR THE BUDGET IS SHORTSIGHTED AND NOT RESOLVED THE BIG ISSUES WE NEED TO RESOLVE.

SO AGAIN I APPRECIATE HAVING THE CONVERSATION FOR THE NO NEW REVENUE RATE BECAUSE IT IS IMPORTANT.

IT'S WHAT THE LAW REQUIRES SO THAT WE GET TO UNDERSTAND THINGS BETTER AND WHILE YOU FEEL LIKE YOU ARE BEING OPEN AND HONEST AND ARE GOING TO PAY SOMEONE TO SHARE THE

[03:10:02]

IT IS JUST BEING TRANSPARENT AND I HAVEN'T SEEN ANYONE MOVE TO THAT. EXCEPT BY -- FOR WHEN THE LAW REQUIRES Y'ALL TO. ANYWAY, SAINT DISAPPOINT -- DISAPPOINTED TO KNOW THE RATE WOULDN'T BE CHANGING AND HOPEFULLY MOVE FORWARD TO HAVE VE LEAVE RATHER THAN A BIGGER BURDEN THAT COMES AT OUR EXPENSE.

THANK YOU. >> STILL IN THE PUBLIC HEARING ON ITEM FOUR. WOULD ANYONE LIKE TO SPEAK?

SEEING NO ONE. >> HAVE A MOTION AND SECOND.

>> MOTION BY COUNCILOR MCCRAVER.

>> SECONDED >> SECONDED.

SECONDED BY COUNCILMAN ESPINOZA.

READY TO VOTE. >> ALL YES.

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

MOTION CARRIES. >>

>> ITEM FIVE. CONSIDERING ON FIRST READING SETTING THE TAX LEVY. AT THIS TIME I WILL OPEN UP THE PUBLIC HEARING. IS THERE ANYONE THAT WOULD LIKE IN SPEAK FOROR AGAINST ITEM FIVE? GIVE YOU NAME FOR THE RECORD. SEEING NO ONE.

I WILL CLOSE THE PUBLIC HEARING.

THIS JUST A WREREGULAR MOTION? YES.

>> ASK FOR MOTION AND SECOND. >> SO MOVED.

>> HAVE A MOTION BY COUNCILLOR PRICE.

>> SECOND. >> SECONDED BY COUNCILOR PATTERSON. AND ANY FURTHER DISCUSSION?

[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 2026-2027]

READY TO VOTE. >> ALL YES.

MOTION CARRIES. >> MOVE TO ITEM SIX.

CONSIDERING ON FIR READING ADOPTING FEES AROUND CHARGES FOR FISCAL YEAR 2026-27. IS THERE ANYONE WHO WOULD LIKE TO SPEAK FOR OR AGAINST ITEM SIX, PLEASE COME FORWARD AND GIVE YOUR NAME FOR THE RECORD. SEEING NO ONE I WILL CLOSE THE PUBLIC HEARING. ANY FURTHER DISCUSSION IF NOT, WILL ACCEPT A MOTION AND SECOND.

>> I DON'T HAVE THAT ONE IN OUR VOTING SYSTEM.

WE WILL HAVE TO DO THIS ONE MANUALLY.

>> MANUALLY. >> OLD SCHOOL.

>> YES. >> OK.

>> SO MOVED. >> MOTION AND SECOND AND I CAN

CALL THE ROLE. >> MOTION BY COUNCILMAN PATTERSON. SECONDED BY COUNCILMAN BEARD? CALL AND ROLL CALL?

>> PATTERSON, YES. >> BAILEY RYES?

>> ESPINOZA, YES. >> PRICE?

>> YES. >> AND MAYOR?

>> YES. >> MOTION CARRIES.

[7. Ordinance (Consider on First Reading): Receive a Report, Hold a Discussion and Take Action on Establishing Base Salary and Step Pay Qualifications, Specialized Functions, Certifications, Assignments, and Additional Pay for Abilene Fire Fighters Employed by the City of Abilene for the Fiscal Year October 1, 2026 through September 30, 2027]

>> WE WILL MOVE TO ITEM SERVE, CONSIDERING ON FIRST READING ESTABLISHING BAAS BASE SALARY, CERTIFICATIONS, ASSIGNMENT AND ADDITIONAL PAY, FOR THE FIREFIGHTERS FOR FISCAL YEAR 26-27. I WILL OPEN THE PUBLIC HEARING.

IS THERE ANYONE THAT WOULD LIKE TO SPEAK FOR OR AGAINST? SEEING NO ONE. I WILL CLOSE THE PUBLIC HEARING. ANY FURTHER DISCUSSION? CITY MANAGER CRAWFORD, THERE HAS TO BE A CHANGE IN THE WAY THIS MOTION IS BECAUSE OF THE RATE.

>> IT'S THE ORDINANCE THAT IS PROVIDED DOES ARTICULATE A 3% PAY INCREASE. SO IF THE COUNCIL'S WISHES TO MAKE THAT FOR THEN WE WOULD NEED THAT PART OF YOUR MOTION

TODAY? >> MOVED FOR APPROVAL WITH

FOUR. >> SECONDED.

>> MOTION BY COUNCILMAN BEARD, SECOND BY COUNCILMAN PRICE? ANY FURTHER DISCUSSION? READY TO VOTE.

>> TWO NO'S FROM COUNCILMAN ESPINOZA.

AND MAYOR. >> WE WILL HAVE INFORMATION ON SEPTEMBER 10TH. NO MEETING TOMORROW.

IT IS NOW 12:42. AND THIS MEETING HAS

* This transcript was compiled from uncorrected Closed Captioning.