Sep 03, 2024 City Council Meeting Work Session

[00:07:29]

ALL RIGHT. IT IS 5:05 P.M.

[00:07:32]

[1. CALL TO ORDER, ESTABLISH QUORUM]

WE HAVE A COUPLE MEMBERS OF COUNCIL THAT ARE ON THEIR WAY.

[A. Pledge of Allegiance.]

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

ALL RIGHT. THANK YOU. ITEM TWO.

[2. CERTIFICATION OF PUBLIC NOTICE]

[3. DISCLOSURE OF CONFLICT OF INTEREST]

UNDER STATE LAW, LOCAL GOVERNMENT OFFICIAL IS REQUIRED TO DISCLOSE A SUBSTANTIAL INTEREST FOR THEMSELVES OR CERTAIN FAMILY MEMBERS AND ABSTAIN FROM VOTING ON MATTERS RELATED TO SUCH A CONFLICT. ARE THERE ANY CONFLICTS TO DISCLOSE RELATED TO THE PENDING MATTERS ON TODAY'S AGENDA? NO, MA'AM.

NONE. VERY WELL. JUST FOR THE RECORD, MAYOR PRO TEM DAN DIAZ HAS JOINED THE

[4. PUBLIC COMMENTS]

YES, SIR. MAYOR. THE EDINBURG CITY COUNCIL ALLOWS FOR A SPECIFIC PORTION OF THE CITY COUNCIL MEETING TO BE DEDICATED TO PUBLIC COMMENTS. PUBLIC COMMENTS ARE LIMITED TO THREE MINUTES. I WILL BE TAKING TIME.

PLEASE NOTE THE PUBLIC COMMENT PERIOD IS NOT INTERACTIVE. THE COUNCIL MAY NOT RESPOND TO PUBLIC COMMENTS AT THIS TIME.

COUNCIL, THERE IS ONE PUBLIC COMMENT IS FOR CLARITY REGARDING A BUDGET MEETING.

SHALL NEED TO BE AFRAID.

I DON'T HAVE ANYTHING WRITTEN DOWN FOR THE WORKSHOP OTHER THAN TO ASK Y'ALL.

I KNOW THAT THE YOU'RE LOOKING.

I BELIEVE AT LEAVING THE THE TAX RATE AT WHAT IT WAS LAST YEAR AND THIS YEAR.

AND I WANT TO REMIND Y'ALL THAT OF ALL THE APPRAISED VALUE PROPERTY THAT WAS RAISED UP AND IF PEOPLE DID NOT PROTEST, IT'S REALLY RAISED UP.

SO MY THING IS Y'ALL ALWAYS LOOK AT WHAT THE THE AMOUNT OF THE TAX RATE WAS LAST YEAR.

AND Y'ALL ALWAYS PAT YOURSELF ON YOUR BACK.

AND WE LEFT IT AT THE THE SAME RATE.

BUT YOU HAVE ALL THE EXTRA THAT'S COMING IN THAT YOU DON'T EVEN THINK ABOUT ON ALL THE NEW BUILDINGS, ALL THE NEW BUSINESSES, ALL THE NEW HOMES THAT YOU COULD ACTUALLY LOWER A PENNY, PENNY OR TWO TO HELP.

SO THAT'S WHAT WE KEEP ASKING, IS THAT YOU TAKE INTO CONSIDERATION OF ALL

[00:10:01]

THANK YOU MA'AM. THERE ARE NO FURTHER COMMENTS.

[5. BUDGET]

[A. Presentation of the Fiscal Year 2024-2025 City Manager's Preliminary Proposed Budget. [Ascencion Alonzo,]

PRESENTATION OF THE FISCAL YEAR 2024 2025 CITY MANAGER'S PRELIMINARY PROPOSED BUDGET.

GOOD AFTERNOON, MAYOR AND COUNCIL. ALONZO, DIRECTOR OF FINANCE, WITH THE ASSISTANCE OF MY ASSISTANT DIRECTOR, MISS JANIE ALVAREZ. OKAY.

I WERE GOING TO PRESENT 2% A DAY.

OUR CITY MANAGER'S PROPOSED BUDGET.

WE HANDED OUT SOME HIGHLIGHTS.

I'D LIKE TO GO OVER THE HIGHLIGHTS.

START OFF WITH THAT. AND THEN AND THEN WE DO HAVE THE DETAILED BUDGET THAT WAS DISTRIBUTED ALREADY. AND WE DO HAVE OUR DIRECTORS AND OUR CITY MANAGER TO ANSWER ANY QUESTIONS.

AND MYSELF TO ANSWER ANY QUESTIONS YOU MIGHT HAVE.

OKAY. OKAY. I'LL START WITH THE BUDGET.

BUDGET HIGHLIGHTS. CITY MANAGER IS NOT PROPOSING A PROPERTY TAX RATE INCREASE.

PROPOSING A TAX RATE TO REMAIN AT 0.6300.

PROPOSING A 3% PAY PLAN ADJUSTMENT FOR NON CIVIL AND CIVIL EMPLOYEES.

WE DO HAVE A NO NO INCREASE IN RESIDENTIAL SOLID WASTE RATES.

THE LAST INCREASE WAS ADOPTED IN OCTOBER 1ST, 2004. AN 11% INCREASE IN WATER RATES AS ADOPTED ON JANUARY 16TH, 2024. NO. NO INCREASE IN DENTAL INSURANCE.

NO INCREASE IN HEALTH INSURANCE FOR FULL TIME EMPLOYEES.

AN INCREASE FUNDING FOR THE LEGAL DEPARTMENT FOR ONE ASSOCIATE CITY ATTORNEY.

INCREASED FUNDING FOR CITY SECRETARY'S DEPARTMENT FOR TWO PART TIME OFFICE SPECIALISTS. AN INCREASED FUNDING FOR MUNICIPAL COURT DEPARTMENT FOR TWO PART TIME ASSOCIATE JUDGES. INCREASED FUNDING TO THE INFORMATION TECHNOLOGY DEPARTMENT FOR THE REPLACEMENT OF FIREWALL FOR CITY HALL SERVER, REFRESH FOR CITY HALL DATA CENTER, AND FOR PURCHASE OF COMPUTERS.

INCREASED FUNDING IN THE FIRE DEPARTMENT FOR ONE ASSISTANT FIRE CHIEF.

INCREASED FUNDING FOR THE STREET DEPARTMENT FOR TWO.

EQUIPMENT OPERATORS TWO.

TWO. EQUIPMENT OPERATORS, ONE FOR STREETS AND ALLEY REPAIRS.

INCREASED FUNDING TO THE BUILDING MAINTENANCE DEPARTMENT FOR TWO CUSTODIANS.

INCREASED FUNDING TO THE CULTURAL ARTS DEPARTMENT FOR ONE CULTURAL EVENT SUPERVISOR TWO CULTURAL ARTS ASSISTANCE ONE AND THEATRICAL LIGHTING.

INCREASED FUNDING TO THE UTILITY ADMINISTRATION DEPARTMENT FOR OFFICE FURNITURE FOR THE NEW SERVICE CENTER BUILDING.

INCREASED FUNDING TO THE UTILITY WATER PLANT DEPARTMENT FOR A GRANT MATCH FOR THE DOWNTOWN WATER PLANT AND CLARIFIER AND MIXER REHAB.

INCREASED FUNDING TO THE UTILITY WASTEWATER TREATMENT PLANT DEPARTMENT FOR THE PURCHASE OF CONFINED ENTRY SPACE EQUIPMENT, CAROUSEL AERATOR MOTOR, AND TO REPLACE HEADWORKS PUMPS.

INCREASED FUNDING TO UTILITY SYSTEMS. DEPARTMENT FOR ONE WASTEWATER MAINTENANCE TECHNICIAN FOR THE PURCHASE OF WATER METERS, FIRE HYDRANTS AND METER BOXES, AND FOR FM 1017 WATER LINE.

ADJUSTMENT PROJECT FUNDING TO THE AIRPORT FOR THE FAA TXDOT NPE GRANT.

MATCH FOR THE FEDERAL BILL II GRANT.

MATCH FOR THE EXTENSION OF RUNWAY 1432.

GRANT MATCH. INCREASED FUNDING TO THE EBONY GOLF COURSE DEPARTMENT FOR ONE PART TIME CASHIER. CLERK SALES CLERK.

INCREASED FUNDING TO THE LOS LAGOS GOLF FOR RECONSTRUCTION OF SAND BUNKERS.

INCREASED FUNDING TO THE SOLID WASTE DEPARTMENT FOR THE PURCHASE OF ROLL OFF TOP CONTAINERS, RESIDENTIAL PLASTIC CARTS, COMMERCIAL CONTAINERS AND FOR FM 2018 TRAFFIC LIGHT AND FOR MOBILE LITTER FENCES.

ON OUR NEXT SLIDE, WE HAVE A COMPARISON OF OUR OF OUR ASSESSED VALUE SCHEDULES.

IF YOU LOOK IN THE LIGHT BLUE COLUMN AT THE BOTTOM AT THE MIDDLE OF THE PAGE, WE HAVE THIS YEAR WE HAD A 6.53 INCREASE IN ASSESSED VALUATIONS.

NET TAXABLE ASSESSED VALUATIONS.

THE TOTAL VALUATION WERE 7,000,204,000 735,403.

[00:15:07]

OUR CURRENT PROPERTY TAX RATE WHICH IS AT 0.6300.

IF YOU NOTICE AT THE LEFT HAND OF THE OF THE SLIDE, WE DO HAVE THE ALLOCATION FOR DEBT SERVICE, WHICH IS 8,160,001 89, AND THE ALLOCATION FOR GENERAL FUND OPERATIONS.

$36,000,033 AND 187. 36.

33. ONE. 87. THE NEXT.

THE NEXT SLIDE WE HAVE.

I JUST HAD A QUICK QUESTION.

CAN YOU ALL GO BACK TO THAT OTHER SLIDE? OKAY. JUST FOR, I GUESS, INFORMATION PURPOSES ON THE ANTICIPATED PROPERTY TAX COLLECTION RATE AT 97%, WHAT WAS THIS CURRENT YEAR? DO YOU HAVE IT AT 97? 97? YES. GOT IT. THAT WAS JUST.

AND SO WE'RE PROJECTING THE SAME RATE.

AND WITH THE AS WE APPROVED LAST, LAST MEETING WITH THE DELINQUENT TAXES, WE WE CERTIFY 100%. OKAY.

GOT IT. THANK YOU. OKAY.

OUR NEXT, NEXT PAGE IS THE TOTAL BUDGETS THAT ARE BEING PROPOSED.

THIS IS A TOTAL EXPENDITURES FOR NEXT YEAR BY FUND.

SO IF YOU HAVE ANY QUESTIONS, I CAN ANSWER? BUT THIS IS THE TOTAL BUDGET FOR FOR OPERATIONS.

WELL, I THINK JUST FOR INFORMATION PURPOSES, SINCE YOU'RE ON THE OUR PROPERTY TAX RATE REALLY HAS TO DO WITH THE GENERAL FUND.

THE TOP. ROW THERE. IS THAT CORRECT? THAT IS CORRECT, SIR. AND FOR DEBT SERVICE AND FOR DEBT SERVICE.

AND SO WHEN WE CONSIDER ADOPTING THE BUDGET OVERALL, MY QUESTION IS BECAUSE I DID HAVE SOME QUESTIONS, FOR EXAMPLE, ON THE UTILITY FUND.

SO OF COURSE, THAT HAS NOTHING TO DO WITH OUR AD VALOREM OR OUR PUBLIC NOTICES.

RIGHT? CORRECT. SO I'M JUST WONDERING IF WHEN WE ADOPT THE BUDGET, IT'S A COMBINED BUDGET.

IS THAT CORRECT? CONSOLIDATED.

WE CAN'T APPROVE FOR EXAMPLE, THE GENERAL FUND AND NOT LIKE THE UTILITY FUND. IT'S JUST I'M JUST CURIOUS TO KNOW HOW THAT COULD.

MY UNDERSTANDING IS NOT REQUIRED, BUT WE DO NEED TO ADOPT THE BUDGETS BEFORE SEPTEMBER 30TH. RIGHT.

IT DOESN'T HAVE TO BE NOW OR THE NEXT MEETING, BUT BEFORE SEPTEMBER 30TH, WE DO NEED TO ADOPT THE OPERATING BUDGETS FOR ALL FUNDS. YEAH. I GUESS COUNCIL WHAT I'M REFERRING TO IS THAT I DO HAVE SOME QUESTIONS ON THE PROPOSED INCREASE IN THE WATER RATE.

OF COURSE, I JUST DON'T WANT TO DELAY THE ADOPTION OF THE BUDGET.

RIGHT. AND SO I WAS JUST ASKING SO THAT SEE HOW MUCH TIME WE HAVE.

I KNOW IT'S FOR THE END OF THE MONTH, BUT IT REALLY HAS NO BEARING ON OUR NOTICES THAT WE HAVE TO PUT OUT RELATED TO OUR BUDGET, OUR GENERAL FUND. NO, ONLY GENERAL FUND AND DEBT SERVICE.

ALL THE ENTERPRISE FUNDS, THEY DON'T THEY DON'T REQUIRE PUBLICATION AS OUR OUR OUR GENERAL FUND AND DEBT SERVICE.

GOT IT. OKAY. OUR NEXT PAGE, WE DID A COMPARISON OF LAST YEAR'S TAX RATES FOR ALL CITIES IN HIDALGO COUNTY.

AS YOU CAN SEE, EDINBURG IS IN THE MIDDLE.

THERE'S SOME THAT ARE HIGHER, SOME THAT ARE LOWER. JUST FOR REFERENCE PURPOSES, WE WE ADDED THIS PAGE.

SO SO YOU MAY SEE WHERE OTHER CITIES ARE AT AND THIS IS LAST YEAR'S RATES ADOPTED.

I THINK SOME OF THE CITIES ARE STILL WORKING ON THEIR BUDGET.

COULD YOU GO BACK REAL QUICK? I'M SORRY AGAIN.

I THINK IT'S ABOUT 2 OR 3 SLIDES.

OKAY. I JUST WANT TO FORGET MY TRAIN OF THOUGHT HERE ON THE COMPARISON OF ASSESSED VALUATION SCHEDULE. SURE.

I THINK IT'S THAT PAGE. THAT ONE THERE.

SO WHERE WE HAVE IN THAT MIDDLE AREA THERE, OF COURSE, WE HAVE ALL THE, THE TOTAL APPRAISED VALUE IN THE TOP, RIGHT. OKAY. YOU SEE IT ON THE SCREEN THERE. AND THEN WE HAVE IN THE MIDDLE SECTION WE HAVE THERE THE OVER 65.

RIGHT. FREEZE THE TAXABLE VALUE AS FAR AS THE DISABLED AS WELL.

THAT'S ALL BY ORDINANCE.

AND THEN THE 10% HOMESTEAD CAP.

RIGHT. AND THOSE THINGS.

SO THOSE ARE ALL BY ORDINANCE.

THOSE ARE BY ORDINANCE.

AND SO IF THERE'S ANY CHANGES THAT COUNCIL WOULD LIKE TO CONSIDER ON THAT, THAT WOULD BE NEED TO BE A PART OF THAT MADE A PART OF THIS.

IS THAT CORRECT? THAT IS CORRECT.

AND I KNOW DURING THE PANDEMIC AND I DON'T THINK Y'ALL WERE HERE, MAYBE SOMEBODY CAN ANSWER THAT.

THERE WAS A IS THAT THAT 10% HOMESTEAD CAP THAT WAS PUT IN OR WHEN WAS IT?

[00:20:05]

EXEMPTION? THAT WAS OR NOT? IT WAS A 5000 HOMESTEAD EXEMPTION GRANTED PAST BY ORDINANCE BY THE CITY.

ON TOP OF WHAT? THE EXEMPTION THAT'S IN PLACE.

OR WELL, THE CITY CAN ONLY GRANT AN EXEMPTION FOR THE FOR THE THE 5000.

AS FAR AS A HOMESTEAD, I KNOW THE SCHOOL DISTRICT HAS RAISED THEIR LEVEL TO TO 100,000 AND TAXPAYERS GET HOMESTEAD EXEMPTION IN SCHOOL DISTRICTS.

BUT HERE THE BUT THAT WAS THE CITY ORDINANCE.

IT WAS DONE BY ORDINANCE. YES.

AND IS THAT INCLUDED HERE? THAT'S ALREADY INCLUDED HERE. IT HAS BEEN AMENDED.

SO IT'S STILL 5000. SO WE'RE STILL INCLUDING THAT FOR THE TAXPAYERS.

OKAY. YES, SIR. THAT'S CORRECT.

OKAY. I WOULD LIKE TO SEE.

AND I KNOW OUR TAX OFFICE I BELIEVE WAS OUR TAX OFFICE OR THE APPRAISAL DISTRICT.

YOU KNOW, WE NEED TO WORK WITH THEM TO SEE HOW WE CAN INFORM OUR RESIDENTS.

RIGHT. OF THE. IT'S NOT AUTOMATIC.

I MEAN, IT'S GOT TO BE FILED RIGHT, WITH THE APPRAISAL DISTRICT. SO I KNOW I THINK THERE WAS A WORKSHOP HELD AND I THOUGHT IT WENT PRETTY WELL.

I JUST LIKE TO ENCOURAGE THAT, YOU KNOW, FOR US, US TO, YOU KNOW, BE PROACTIVE WITH OUR RESIDENTS TO MAKE SURE THAT THEY FILE THAT WITH THE APPRAISAL DISTRICT OTHERWISE, THEY'RE NOT GOING TO BE ABLE TO CLAIM THAT EXEMPTION. SO WE WILL.

WE'LL CALL THE COUNTY.

THANK YOU. SEE WHAT WE CAN DO. OKAY.

THE NEXT THE NEXT PAGE IS, IS THIS IS OUR FUND BALANCE WHERE WE PROJECT TO BE AT AT THE END OF THIS FISCAL YEAR.

WE HAVE ONE MORE MONTH TO GO.

WE WE DO ANTICIPATE OR PROJECT AN UNASSIGNED FUND BALANCE AT 930, 2024 OF 21,935,923 FOR NEXT YEAR.

CITY. CITY MANAGER IS PROPOSING A BALANCED BUDGET, AND WE WILL REMAIN AT 25%.

FUND BALANCE FOR PROJECTED FUND BALANCE FOR 930 2025 IS 21 MILLION.

935 923 TO TO BE AT 25%, WHICH IS ABOUT 92 WORKING DAYS.

DID WE DID WE ADOPT THAT POLICY? OR OR IS IT BY ORDINANCE? RIGHT NOW IT'S JUST ADMINISTRATIVE. WE DON'T HAVE IT BY ORDINANCE.

IF YOU'D LIKE, WE CAN. WE CAN DO THAT.

I KNOW WE'VE MAINTAINED IT, AND IT'S GREAT BECAUSE OUR AUDITORS OBVIOUSLY THAT AND IT HELPS US, RIGHT.

OVERALL. AND I'D LIKE TO MAINTAIN THAT.

I WAS JUST WONDERING IF WE.

YEAH, WE DO HAVE INTERNAL CONTROLS TO MONITOR THAT AND NOT GO BELOW THAT.

SO WE DO DO IT ADMINISTRATIVELY.

IT'S NOT BY ORDINANCE, BUT WE DO FOLLOW THAT.

AND WE DO HAVE INTERNAL CONTROLS TO TO NOT GO BELOW THAT.

RIGHT. OKAY. GREAT. AND THOSE ARE OUR BUDGET HIGHLIGHTS.

WE DO HAVE THE BUDGET.

THE BUDGET ACTUAL BUDGET DETAIL.

WE ARE HERE TO ANSWER ANY QUESTIONS YOU MIGHT HAVE, OR MAYBE OUR DIRECTORS OR CITY MANAGER.

ASSISTANT CITY MANAGER CAN ANSWER.

WELL, BEFORE WE GET INTO THAT, CAN YOU JUST GO OVER THE SCHEDULE REAL QUICK? SO TODAY'S WORK. ANOTHER WORK SESSION WE'RE HAVING WHAT HAPPENS NEXT SO THAT EVERYBODY'S AWARE OUR NEXT MEETING, WHICH WOULD BE THE SECOND MEETING IN SEPTEMBER? WE'RE SCHEDULED TO HAVE A PUBLIC HEARING.

WELL, TODAY, IN TODAY'S MEETING WE ARE REQUESTING CITY COUNCIL TO PROPOSE A VOTE AND TAKE A VOTE. AND WE DO NEED TO PUBLISH THAT.

IT WILL BE PUBLISHED ON SATURDAY.

AND THEN THE NEXT MEETING WILL BE A SECOND MEETING IN SEPTEMBER.

WILL BE BRINGING BACK THE FINAL ANY CHANGES YOU ALL REQUEST? WE'LL WE'LL ADDRESS THOSE, AND WE WILL BE PRESENTING THE FINAL BUDGET.

WE WILL ALSO BE HAVING A HEARING ON ON OUR TAX RATE AND OUR PROPOSED BUDGET AND AND ALSO ON THE 17TH AND VOTING ON THE TAX RATE AND ALSO VOTING ON THE BUDGET.

ALL RIGHT, COUNSEL, AT THIS TIME, WE'LL OPEN IT UP FOR FOR ANY QUESTIONS.

I JUST WANT TO THANK THE FINANCE DEPARTMENT, CITY MANAGEMENT, ALL THE DEPARTMENTS I KNOW. THIS IS A VERY TOUGH TASK, BUT ONE THAT HAS TO BE DONE EVERY YEAR.

AND SO THANK YOU ALL FOR PRESENTING A BALANCED BUDGET.

I KNOW IT'S NOT EVERYTHING WE'D LIKE TO SEE, BUT YOU KNOW, WE HAVE TO WORK WITH THE FUNDS THAT WE HAVE. AND I DO APPRECIATE THE FACT THAT WE'RE PRESENTING A BALANCED BUDGET AND WITH SOME, NOT SOME.

BUT WE DO HAVE SAVINGS THERE, RIGHT?

[00:25:01]

I LIKE TO SEE IT THE WAY YOU ALL ARE PRESENTING IT, BECAUSE THERE'S SO MANY NEEDS OUT IN THE COMMUNITY. AND SO I THINK AS LONG AS WE MAINTAIN THE 25%, WE USE OTHER FUNDS TO ADDRESS THE NEEDS WE HAVE.

I THINK THAT'S THE WAY TO GO.

THERE'S DIFFERENT WAYS TO LOOK AT IT. I KNOW MY SOME OF MY FELLOW COLLEAGUES.

I KNOW THEY LIKE TO BUILD THEIR FUND BALANCE, BUT THERE'S SO MANY NEEDS WE HAVE AND GROWING COMMUNITY THAT WE NEED TO ADDRESS.

SO BUT COUNCIL, I'LL OPEN IT UP AT THIS TIME.

DOES ANYBODY HAVE ANY QUESTIONS, ANY COMMENTS, ANY ANYTHING YOU'D LIKE TO SEE? IF I'M GLAD YOU KEPT THIS SLIDE ON HERE.

BECAUSE COUNCIL, JUST TO POINT ATTENTION, PUT ATTENTION TO THIS FUND BALANCE, YOU KNOW RIGHT. NOW'S THE TIME.

IF YOU KNOW ANY ITEMS, ANY PROJECTS YOU'D LIKE TO SEE, ANY ADDITIONS OR THINGS.

BECAUSE IF WE DO IT DURING THE YEAR, IT AFFECTS OUR FUND BALANCE.

AND THAT'S WHY WE HAVE TO FOLLOW THIS BUDGET AS A GUIDE.

SO DOES ANYBODY HAVE ANY QUESTIONS? WELL, MAYOR, I JUST I WOULD JUST LIKE TO SAY I'VE BEEN UP HERE A FEW YEARS NOW, AND I THINK EVERYBODY'S HEARD ME AT THIS TIME OF THE YEAR. GET ON MY SOAPBOX AND WORRY ABOUT WHERE WE'RE AT IN THE BUDGET. I'D LIKE EVERYBODY TO KNOW THAT WE WERE ALL PRESENTED WITH A BOOK THAT WE'VE BEEN GOING OVER FOR THE LAST FEW DAYS, TO SEE IF WE HAD ANY QUESTIONS.

OVER THE LAST FEW YEARS, I'VE HAD A LOT OF QUESTIONS, AND I'M AFTER GOING OVER THIS AND WITH MR. ALONSO, I REALLY APPRECIATE YOU BEING HERE. I'M A HECK OF A LOT MORE COMFORTABLE TODAY THAN I WAS A YEAR AGO.

THANK YOU, COUNCIL MEMBER. THANK YOU SO MUCH. THANK YOU MAYOR.

THANK YOU. ANYBODY ELSE? I HAD ALREADY SENT MY LIST OF QUESTIONS IN, SO I GOT MY QUESTIONS MOSTLY ANSWERED.

SO AND I APPRECIATE THAT I'LL HAVE SOME FOLLOW UPS, BUT I'LL LET THE OTHER COUNCIL MEMBERS ASK.

AND I'LL GO OVER THEM FOR EVERYBODY'S INFORMATION. IT'S JUST QUESTIONS THAT I HAD.

I THINK I WANTED TO MAKE SURE I WAS AWARE.

YEAH. AND I JUST WANT TO ECHO CHIEF WHITE'S COMMENTS. THANK YOU. I KNOW THIS IS A LOT OF WORK. CITY MANAGER'S OFFICE.

MYRA, I KNOW YOU MISSED A LOT OF PHONE CALLS BECAUSE A LOT OF BUDGET MEETINGS OVER THE PAST FEW WEEKS. SO. AND GOING OVER THE BUDGET BOOK WHERE WE LOOK AT CITY MANAGER RECOMMENDED. IS THAT WHEN I LOOK AT THE PROPOSED BUDGET BY DEPARTMENT IS THAT WE'VE ALWAYS ASKED THE WHAT'S WHAT'S WHAT'S THE ASK FOR THIS YEAR WITH THE INCREASES? IS THAT REFLECTED ANYWHERE HERE, OR IS THAT HAS THAT ALREADY BEEN TAKEN OUT OF BY THE TIME THIS WAS PROPOSED? SO PART OF THE PROCESS IS MEETING WITH EACH ONE OF THE DEPARTMENTS REGARDING THEIR THEIR WISH LIST, THEIR NEEDS, THEIR WANTS AND WHAT THEY WOULD LIKE TO PRESENT, YOU KNOW, TO COUNCIL AND CITY MANAGEMENT FOR THEIR CONSIDERATION.

SO WHAT WE DID IS WE REVIEWED THEIR YEAR TO DATE DETAILED BUDGET AS TO WHERE THEY WERE AT OPERATION WISE. AND THEN WE BASED THAT ON WHAT WE'RE PROPOSING FOR THE FOLLOWING YEAR, THERE WAS SOME CAPITAL OUTLAY REQUESTS THAT WERE EITHER ADDRESSED OR THAT COULD EITHER BE ADDRESSED THIS CURRENT YEAR THAT WERE ALSO CONSIDERED UNDER OTHER FUNDING MECHANISMS, SUCH AS CAPITAL LEASE.

ARPA MAY BE A FUTURE CERTIFICATE OF OBLIGATION BONDS.

AND SO THERE WAS A LOT OF DISCUSSION AND THERE WAS A LOT OF PRESENTATION REGARDING, AGAIN, GOING THROUGH THE NEEDS AND THE WANTS.

OF COURSE, THERE'S ALWAYS MORE NEEDS AND WANTS AND THERE IS FUNDING YOU KNOW, BUT OPERATION WISE, I THINK GOING THROUGH THE PROCESS WITH THE DIRECTOR OF FINANCE, YOU KNOW, THE ASSISTANT CITY MANAGERS AND THE DIRECTORS, I THINK WE CAME OUT WITH A VERY GOOD BALANCED BUDGET. IT IS IT'S A LEAN BUDGET, BUT IT'S IT'S A VERY WELL BALANCED BUDGET.

THANK YOU. SO I I DID THINK OF 2 OR 3 MORE QUESTIONS I'LL ADD TO SO MY, MY ONLY THING, I GUESS, DURING THE BUDGET TIME IS I WANT TO MAKE SURE THAT WE'RE, THAT WE'VE EVALUATED ANY INTERLOCAL AGREEMENTS, ANY 380 AGREEMENTS. ANY COMMITMENTS THAT COUNCIL HAS MADE THROUGHOUT THE YEAR TO MAKE SURE THAT THEY'RE INCORPORATED IN HERE. SO HAVE WE DONE THAT AND IF SO, WHERE IS IT INCLUDED IN THE NON-DEPARTMENTAL? WELL, WE STARTED WITH THE PROCESS THROUGH OUR THROUGH OUR TRYING TO BALANCE A BUDGET WITH INCLUDED EVERYTHING. WE DID GO THROUGH OPERATIONS THAT TO PROVIDE THE SERVICES TO OUR TAXPAYERS. WE DO NEED TO HAVE THE FUNDING FOR THAT.

THEN WE WENT TO THE NEXT STEP TO SEE HOW MUCH CAPITAL OUTLAY WE COULD AFFORD.

AND THEN THE NEXT STEP IS GOING TO BE TO GET WITH OUR FINANCIAL ADVISERS AND PRESENT TO MAYOR AND COUNCIL, DEPENDING ON YOUR DIRECTIVES, THE PROJECTS THAT WE COULDN'T FUND OUT OF OPERATIONS.

[00:30:02]

BUT WE HAVE LOOKED AND TRY TO FUND AS MUCH AS WE COULD.

THERE ARE SOME ITEMS THAT ARE NOT INCLUDED IN HERE, BUT THOSE ARE ITEMS THAT USUALLY ARE FUNDED WITH A LONGER PERIOD OF TO PAY THAT.

AND SO TO ECHO MR. ALONSO'S COMMENTS WE DID ASSESS A LOT OF THE OPERATIONS AND THE FUNDING OF THE, OF THE OPERATIONS FOR THE DEPARTMENTS AND ALSO ANY, ANY COMMITMENTS. SO WE LISTED THE COMMITMENTS.

SOME OF THEM ARE IN NON-DEPARTMENTAL, BUT OTHERS WILL BE REQUESTED THROUGH OUR CERTIFICATES OF OBLIGATION THROUGH THE BONDS.

OR ANY OTHER FUNDING FUNDING MECHANISMS WHICH WILL BE PRESENTED TO YOU IN THE NEXT CITY COUNCIL MEETING. AND IS THERE ANY MAJOR CAPITAL IMPROVEMENTS UNDER THE GENERAL FUND THAT ARE INCLUDED IN THIS BUDGET THAT ARE THAT COULD QUALIFY AS PART OF THE BOND FUNDS, OR I DON'T SEE VERY MANY THAT ARE INCLUDED HERE.

THOSE HAVE ALREADY BEEN TAKEN INTO CONSIDERATION. AND WE DID CREATE A LIST OF OF CAPITAL IMPROVEMENT PROJECTS THAT WE WOULD LIKE TO PROPOSE TO COUNCIL FOR THEIR CONSIDERATION, BASED ON COMMENTS THAT WE'VE RECEIVED FROM COUNCIL FOR THEIR CONSIDERATION TO PROPOSE FOR THE BOND.

ALL RIGHT. SO I'LL MOVE ON.

AND I ASKED REAL QUICKLY EARLIER ABOUT THE ON THE UTILITY FUND.

SO THE ORDINANCE WAS APPROVED ON JANUARY OF THIS YEAR.

RIGHT. AND THAT ORDINANCE, I GUESS, TALKED ABOUT THE WATER RATE STUDY OF ALL THESE IMPROVEMENTS WE HAVE TO DO. AND IT WAS A PROPOSED SCHEDULE.

CORRECT. AND SO WHAT YOU'RE SEEING HERE IS TIED TO THAT ORDINANCE.

IS THAT CORRECT? THAT IS CORRECT. OKAY.

SO AND I KNOW I ALREADY ASKED IT, BUT JUST FOR COUNCIL, ASKED CITY STAFF ABOUT THIS INCREASE AND TO SEE IF WE COULD POSSIBLY HOLD OFF AT THIS TIME BASED ON WHERE THE PROJECTS ARE AT OR WHEN WE'RE POSSIBLY GOING TO ISSUE BONDS.

SO MY QUESTION IS, WHEN ARE WE LOOKING TO ISSUE THAT FOR SOME OF THOSE PROJECTS? I KNOW WE GOT TO GET THEM READY, GOT TO GET ALL THAT.

BUT THIS WOULD TAKE EFFECT OCTOBER 1ST.

BUT I'M JUST ASKING, WHEN IS IT THAT WE'RE LOOKING TO ISSUE DEBT FOR THESE UTILITY FUND PROJECTS? I DON'T FORESEE THAT HAPPENING THIS NEXT YEAR.

WE HAVE ISSUED A COUPLE OF BONDS.

RIGHT BEFORE I CAME IN WE HAVE LOOKED AT IT UTILITY FUND WE DON'T ANTICIPATE ANYTHING BEING ISSUED IN THE NEAR FUTURE.

AND THIS NEXT YEAR, WE WILL BE EVALUATING AS WE GO, SEE HOW WE END UP THE YEAR AND FUNDS THAT ARE AVAILABLE.

WE DO HAVE SOME COVERAGE RATIOS THAT WE NEED TO MEET.

RIGHT? BUT AT THIS TIME I IN MY OPINION, WE DON'T HAVE THE BONDING CAPACITY UNDER UTILITY. THE UTILITY FUND WE ARE GOING TO BRING TO TO MAYOR AND COUNCIL SOME SOLID WASTE MANAGEMENT. THERE'S THERE'S BEEN A PLAN FOR, FOR SOME A SALE APPROXIMATELY ABOUT $9 MILLION.

AND WE'VE CHECKED WITH OUR FINANCIAL ADVISORS. WE'RE LOOKING AT POSSIBLY ANOTHER 9 MILLION TAX SUPPORTED FOR ANY PROJECTS.

THAT'S OUR DEBT CAPACITY.

AT THIS TIME, WE'LL CONTINUE TO TO COMMUNICATE WITH THEM AND FIND OUT WHAT WE CAN FUND. BUT AT THIS TIME NONE OF THE BIG PROJECTS WILL BE FUNDED THIS NEXT YEAR.

YEAH. AND, I MEAN, CORRECT ME IF I'M WRONG.

WHAT I SEE UNDER UTILITIES FUND IS MAJOR PROJECTS.

THERE'S A CLARIFIER UNDER THE WATER PLANT, AND THEN THERE'S A.

THERE'S SOME PUMPS ALSO.

RIGHT. REPLACEMENT PUMPS.

LIFT STATION UPGRADES.

YEAH. BUT ASIDE FROM THAT.

SO MY QUESTION IS, ARE THOSE TWO INCLUDED IN THAT CIP LIST.

SO THEY'RE INCLUDED. THEY'RE INCLUDED IN THE CIP LIST, BUT THEY'RE INCLUDED IN OUR IN OUR CURRENT BUDGET AS WELL.

BUT WHAT WHAT I'M SAYING IS SO ARE THESE THESE ARE POSSIBLY TWO PROJECTS THAT WE CAN POINT TO THAT ARE PART OF THAT CIP LIST.

THEY'RE ON THE LIST TO BE FUNDED BY UTILITY OPERATIONS FUNDS.

YES. AND THEN WE DO HAVE THE SOURCE.

IF WE ANTICIPATE THAT THERE MIGHT BE SOME GRANTS, WE ANTICIPATE YOU KNOW, ISSUING A COES OR BONDS OR PROJECTS ON BOARD, BUT THE PROJECTS THAT ARE IN HERE WILL BE FUNDED OUT OF OPERATIONS.

AND IS THERE ANY, ANY FUNDS HERE INCLUDED TO START DESIGN WORK OR ANY OF THAT FOR,

[00:35:05]

WE HAVE LOOKED AT THAT, AND WE WOULD LIKE TO RECOMMEND A RESOLUTION TO BORROW THE MONEY FROM OPERATIONS TO START THAT DESIGN PROCESS, INSTEAD OF ISSUING ALL THE FUNDS AND HAVING THEM SIT UNTIL ALL THIS PROCESS GOES THROUGH.

WE'RE RECOMMENDING A RESOLUTION TO BORROW THE FUNDS.

WHEN WE ISSUE THE FUNDS, THEY WILL BE PAID.

THE UTILITY FUND WILL BE PAID BACK.

OKAY. SO BECAUSE I MEAN, THIS PARTICULAR CASE, ASIDE FROM THESE TWO PROJECTS MOST OF THE INCREASE INCLUDED IN THIS BUDGET FOR THE UTILITY FUND IS REALLY BEING ABSORBED BY OPERATIONS.

IS THAT CORRECT? OPERATIONS.

AND THOSE PROJECTS YOU MENTIONED THAT THAT ARE FUNDED THROUGH HERE, THROUGH THROUGH THE OPERATIONS FUND.

THERE IS SOME CAPITAL OUTLAY LIMITED CAPITAL OUTLAY, BUT ONLY THE PROJECTS THAT ARE IN HERE ARE THE ONES THAT ARE BEING FUNDED FROM OPERATIONS. AND SO IS THERE A POSSIBILITY OF I MEAN, WE KNOW WHAT THE INCREASE IS, RIGHT? WHAT IT AMOUNTS TO THE WHAT'S BEING PROPOSED HERE TO SET THAT AMOUNT ASIDE AS WE LOOK TO START SOME OF THOSE BIG PROJECTS.

RIGHT. BECAUSE THAT WAS THE WHOLE PURPOSE. RIGHT? OF THE ORDINANCE.

RIGHT. BUT SOME OF THE PRELIMINARY STEPS HAVE BEEN TAKEN HAVE BEEN DONE AND THAT THEY'VE BEEN TAKEN. I KNOW THAT WE'VE DONE SOME HOUSE SURVEYING.

WE'VE DONE COST ESTIMATION AND MEASUREMENTS FOR SOME OF THESE PROJECTS.

SO THAT WE CAN HAVE THEM READY ONCE THEY'RE, ONCE THEY'RE TAKEN INTO CONSIDERATION AND POSSIBLY APPROVED TO BE FUNDED.

BUT AT THIS TIME THOSE PROJECTS ARE IN THE CURRENT BUDGET SO THAT WE CAN BEGIN FUNDING SOME OF THOSE PROJECTS THAT ARE IN CAPITAL IMPROVEMENTS.

THESE ARE THESE ARE NEEDS THAT WE NEED TO DO IN ORDER TO KEEP UP WITH THE GROWTH AND THE DEMANDS OF OUR INFRASTRUCTURE.

AND SO WE WOULD LIKE TO START WITH THESE PROPOSED BUDGET BUDGETED ITEMS IN, IN THIS FISCAL YEAR AND THEN KIND OF MOVE TOWARDS THE FIVE YEAR CAPITAL IMPROVEMENT PROJECTS. YEAH. AND COUNCIL THAT THE REASON I'M ASKING IS OBVIOUSLY I'M JUST KIND OF INQUIRING TO SEE IF THERE'S A NEED TO ENACT THIS INCREASE BECAUSE I DON'T IT'S NOT GOING TOWARDS WHAT THE CIP LISTS.

RIGHT? I MEAN, AT LEAST WHAT WE HAVE TALKED ABOUT. AND SO THAT'S THE ONLY REASON I'M BRINGING IT UP. IT'S BEING ABSORBED THROUGH OPERATIONS.

WE NEED IT. I'M NOT SAYING WE DON'T NEED IT. WE NEED TO KEEP UP.

IT'S JUST IT'S IT'S NOT, IN MY OPINION, THE SPIRIT OF THE ORDINANCE THAT WAS APPROVED, YOU KNOW, AT THE TIME, IT WAS TO MAKE SURE THAT WE DID ALL THESE PROJECTS. SO THESE ITEMS WERE IN OUR IN OUR CIP LIST, BUT WE REMOVED THEM SO THAT WE CAN FUND THEM THIS YEAR.

YEAH, BUT WE'RE TALKING ABOUT 500,000 WORTH OF PROJECTS.

IS THAT CORRECT? THESE TWO, WHEN YOU ADD THESE TWO AND OF COURSE IN SYSTEMS YOU HAVE A WATER LINE ADJUSTMENT.

BUT THAT'S JUST BECAUSE OF THE ROAD WIDENING RIGHT FOR TEXDOT.

IS THAT CORRECT? IT'S NOT TIED TO THINGS THAT WE NEEDED TO DO TO OUR SYSTEM.

RIGHT. I DO RECOMMEND THAT AS FAR AS OPERATIONS THAT THAT I THINK THAT WE'VE LOOKED AT AND LOOKED AT, AND I THINK THAT IT'S REASONABLE.

I THINK THAT THERE'S NO ANY, ANY OPPORTUNITY TO DECREASE THAT.

AS FAR AS I THINK TO ANSWER YOUR QUESTION, IT WOULD BE SOMETHING TO I KNOW THAT OUR CITY MANAGER, OUR ASSISTANT CITY MANAGER AND DIRECTORS HAVE MET.

IT IS SOMETHING THAT THEY WOULD NEED ASSESSMENT AS FAR AS CAN IT.

CAN ANY OF THIS CAPITAL OUTLAY WAIT ANY LONGER, OR IS THIS SOMETHING THAT'S A DIRE NEED THAT WE NEED FOR OPERATIONS.

SO THAT WOULD BE THE NEXT STEP THAT I WOULD RECOMMEND IF IT'S SOMETHING TO BE LOOKED AT.

BUT I THINK THAT CITY MANAGER, ASSISTANT CITY MANAGERS AND DIRECTORS HAVE BEEN GOING BACK AND FORTH, AND I CAN'T ANSWER FOR AS FAR AS WHEN THOSE NEEDS NEED TO BE MET, OR IF WE'RE AT A POINT THAT THAT WE CAN'T GO ANY FURTHER. SO THAT WOULD THAT WOULD BE SOMETHING TO ASSESS AND, AND REEVALUATE MAYBE. I THINK IT'S ALREADY BEEN LOOKED AT.

AND I CAN'T SPEAK FOR CITY MANAGER AND ASSISTANT CITY MANAGERS AND DIRECTORS, BUT THAT WOULD BE AS A DIRECTOR OF FINANCE, THE RECOMMENDATION THAT THAT WOULD BE LOOK MAYBE REEVALUATED AND OR LOOKED AT AGAIN.

AND IF THE ANSWER IS ALREADY THEY'VE ALREADY DONE THAT, THEN I THINK THAT IT'S IT MIGHT IT'S A HARD DECISION, BUT WE MIGHT NEED TO, TO INCREASE RATES.

SO SOME OF THESE ITEMS, SUCH AS A LIFT STATION UPGRADES, I KNOW THAT WE'VE HEARD COMMENTS FROM FROM RESIDENTS.

YOU KNOW THAT YOU KNOW, A DEVELOPMENT IS TAKING PLACE,

[00:40:04]

ALL RIGHT. YEAH. AND I UNDERSTAND WHAT YOU'RE SAYING, MAYOR, BUT THE QUESTION I HAVE TO MYRA OR OR JOHN IS IF WE WERE TO SOMEHOW GO WALK BACK THE ORDINANCE WHERE 11% IS THE RAISE IN THE UTILITY RATES, WOULD THAT RAISE HAVE TO BE EVEN MORE NEXT YEAR WHEN WE NEED THE FUNDS? WOULD IT AFFECT THE PLAN AND THE PLAN FOR FOR THE INFRASTRUCTURE NEEDS AND AND JUST AND I WANT TO REITERATE THE REASON THAT THE UTILITY RATES I KNOW WE'VE ALREADY DISCUSSED THIS, BUT THE FACT THAT THEY HAD NOT BEEN CHANGED IN 20 SOME YEARS.

THAT'S THE REASON WE HAVE THESE BIG JUMPS.

BUT IF WE HOLD BACK, WILL THAT MAKE US HAVE TO INCREASE THEM EVEN MORE LATER? YES, WE WOULD HAVE TO TAKE EVERYTHING INTO CONSIDERATION BASED ON THE DEMAND AND THE GROWTH THAT WE HAVE AND THE NEEDS BASED ON THE UPGRADES FOR THE LIFT STATIONS AND THAT WE'RE SEEING AND THE EMERGENCY I GUESS THE EMERGENCY REQUESTS THAT WE HAVE BASED ON THE ON ON THE NEEDS OF THE IMPROVING, IMPROVING THE, THE, THE DIFFERENT STATIONS AND THE DIFFERENT PLANTS AND SO FORTH.

THANK YOU. AND I THINK I ALSO REMEMBER CORRECTLY WE DID THIS IN A SOFTWARE INCREASE JUST BECAUSE WE DIDN'T WANT TO HAVE THAT BIG JUMP OR SPIKE.

RIGHT. I MEAN, I UNDERSTAND WHAT YOU'RE SAYING, BUT IF WE DELAY IT, LIKE MAYA WAS SAYING, I THINK WE WILL HAVE A HUGE SPIKE IN THE RATE INCREASE. YEAH. AND I I'M NOT SAYING WE DELAY OR NOT MAKE THESE IMPROVEMENTS.

MY ONLY, I GUESS, ISSUE THAT I BRING UP IS THAT WHEN THIS WAS APPROVED, WHERE THE FUNDS ARE GOING, IT WAS TIED TO THESE CIP PROJECTS THEN.

AND MY POINT IS THAT WE'RE NOT READY, YOU KNOW, TO START THOSE PROJECTS.

YOU KNOW, WHY ARE WE HAVING INCREASED RATES? THAT'S ALL I'M SAYING. WE GOT TO MAKE THESE IMPROVEMENTS. AND I KNOW IT'S PROBABLY NOT FAIR FOR ME TO SAY IT THAT WAY, BECAUSE THERE'S A LOT INVOLVED WITH THESE PROJECTS.

BUT IT IS SOMETHING TO JUST KEEP IN MIND.

THAT'S ALL I'M BRINGING UP BECAUSE THESE ARE INCREASES AND I KNOW WE NEED TO MAKE THESE IMPROVEMENTS, BUT, YOU KNOW, I DON'T THINK WE'RE WE HAVEN'T EVEN STARTED WITH THE DESIGN AT THIS TIME WITH SOME OF THESE PROJECTS.

I KNOW THERE ARE LARGE PROJECTS, I GET IT. THERE'S A LOT THAT NEEDS TO HAPPEN.

I JUST DIDN'T SEE ON THE CAPITAL OUTLAY, YOU KNOW, SOME OF THOSE PROJECTS THAT I THOUGHT WE COULD INCLUDE.

AND I KNOW IT'S TIGHT BUDGET, BUT THAT'S THE REASON I BRING IT UP.

SO, MR. ALONSO, AT THIS TIME, FROM THE GENERAL FUND, HOW MUCH DO WE TRANSFER INTO THE UTILITY FUND? THERE IS NO TRANSFER FROM GENERAL FUND.

THE ONLY THING IS WE WE DO HAVE WE ARE PAYING ONE OF THEIR ONE OF THEIR DEBT SERVICE.

ONE OF THEIR THE LAST TEMPORARILY.

YEAH. AND IT'S ABOUT 190, 1000, I THINK IT IS EVERY SIX MONTHS.

SO IT'S ABOUT 382,000 THAT THAT IS BEING PAID OUT OF TAX MONEY VERSUS A UTILITY MONEY WHERE IT COULD COME OUT OF THE UTILITY FUND. YES.

COULD COME OUT OF UTILITY. DIDN'T EVERY ONCE IN A WHILE I SEE A PURCHASE ON HERE THAT WE'RE GOING TO PURCHASE OR REHAB A MANHOLE OR SOMETHING LIKE THAT.

IT'S GENERALLY FUND BECAUSE THERE'S NO MONEY IN THE UTILITY FUND NOW.

RIGHT NOW, EVERYTHING'S BEING PAID OUT OF A OUT OF THE YEAR.

THERE HASN'T BEEN NOT NOT THIS YEAR.

THAT'S WHY I'M ASKING. YES, SIR.

YES, SIR. NO, NOT THIS YEAR.

EVERYTHING IS BEING PAID OUT OF UTILITY FUND.

WE DO KEEP THEM SEPARATE.

AND IT'S A SELF-SUSTAINING.

BUT WE'RE NOT TRANSFERRING ANYTHING IN RIGHT NOW. IT'S SELF-SUSTAINING. CORRECT. BUT I KNOW THERE WAS A BIG DEBATE ON THIS, TOO. IS IT BARELY SUSTAINING ITSELF? IS THERE IS THERE A FUND BALANCE THAT WE KEEP A LIKE WE DO WITH THE GENERAL FUND, WITH THE ENTERPRISE FUNDS.

WE IT'S A NET POSITION.

WE DO HAVE CASH BALANCES IN OUR FUND.

AS FAR AS THE RESERVE, A RESERVE IS NOT BECAUSE FUND BALANCE FOR ENTERPRISE FUNDS INCLUDES ALL THE PIPES, ALL THE SYSTEMS, EVERYTHING ELSE. SO IT'S KIND OF A NOT THE APPLES WITH APPLES.

I THINK IT'S BUT WE DO LOOK AT MAINTAINING A CASH BALANCE THAT, THAT WILL BE THERE FOR OPERATIONS.

SO IN REALITY, THE GENERAL FUNDS FUND IS THE SUPPORT FUND FOR THE I MADE THAT I MADE THAT TOO COMPLICATED ANSWER.

OKAY. OKAY. SO RIGHT NOW THE RESERVE FUND AND THE GENERAL FUND SUPPORTS IF THERE'S A CATASTROPHE IN OUR WATER PLANT OR SOMETHING LIKE THAT, IT WOULD BE OUR, OUR GENERAL FUND THAT WOULD HAVE TO COME IN AND PICK IT UP.

IF THERE'S NO MONEY IN THE UTILITY FUND. NO, WE DO HAVE A CASH BALANCE IN A UTILITY FUND.

REFUND? IS IT A PERCENTAGE OF THE PERCENTAGE OF THE CASH BALANCE TO THIS YEAR AT THIS TIME, TO THE TOTAL EXPENDITURES?

[00:45:05]

AND WE JUST CALL IT SOMETHING ELSE.

THE WORDING IS JUST. YES.

YEAH. IT'S A REVENUE FUND. YEAH. COUNCIL MEMBER. SO IT'S BUT IT'S SELF-SUSTAINING.

IT'S NOT JUST A DIFFERENT NAME. IT'S CASH FUND.

YES. OKAY. RIGHT. AT THIS TIME, IT'S NOT. IT'S NOT DEPENDENT ON IT, AS I GUESS. NET POSITION.

RIGHT I GUESS. YES. CORRECT.

OKAY. THANK YOU. THE OTHER QUESTION I HAD FOR CITY MANAGER WAS ON THE THE OTHER ORDINANCE THAT THE COUNCIL WE ADOPTED, I THINK WAS IT ABOUT A YEAR AGO REGARDING RAISING THE MINIMUM WAGE TO $15? DO YOU REMEMBER THERE WAS AN ORDINANCE THAT WAS APPROVED, AND I KNOW THERE'S A PAY PLAN ADJUSTMENT, WHICH I'M GLAD TO SEE.

ALL THE EMPLOYEES DESERVE THIS.

BUT I'M JUST, YOU KNOW, WANTING TO MAKE SURE THAT I THINK WE HAD, LIKE, A THREE YEAR TIME FRAME TO REACH THAT MINIMUM WAGE.

AND SO I KNOW THIS PUTS US NOW AT 1298 FROM THE NUMBERS THAT YOU ALL PROVIDED.

RIGHT. THE MINIMUM. CORRECT.

HOURLY. I JUST WANT TO KNOW WHAT THE PLAN IS TO GET TO THAT 15.

SO THAT'S ACTUALLY A VERY GOOD QUESTION. THAT'S A DISCUSSION THAT I'VE BEEN HAVING WITH YOU KNOW, THE DIRECTOR OF FINANCE AND THE TEAM.

WHAT WE WOULD LIKE TO DO IS PROPOSE THE 3% PAY PLAN ADJUSTMENT AND SOME OF THE SOME OF THE EMPLOYEES THAT ARE CURRENTLY AT $14 AND CHANGE WILL ACTUALLY COME OFF OF THAT LIST, BECAUSE THEY'LL ALREADY BE AT $15 AN HOUR.

AND THEN WHAT WE WOULD LIKE TO SEE IS START ASSESSING ALL OF THE EMPLOYEES AND POSSIBLY DEPENDING ON MID-YEAR SAVINGS, DEPENDING START PROPOSING WHAT THE ACTUAL COST WILL BE TO START BRINGING EMPLOYEES THAT ARE AT THE, THE, THE $13 OR 12 INCH RANGE TO START BRINGING THEM UP TO $15 AN HOUR AND GRADUALLY PHASE THAT IN. WE WE'LL START WITH THE, THE LOWER GRADE AND THEN WE'LL START OR OR AND THEN EXCUSE ME, START WITH THE EMPLOYEES, AND THEN WE'LL START LOOKING AT THE GRADES AND START MAKING THOSE CHANGES.

SO WE ARE WE ARE ASSESSING THAT AND WE ARE LOOKING INTO THAT.

WE JUST FELT THAT THE 3% PAY PLAN ADJUSTMENT WILL AT LEAST GET GET US THERE A LITTLE BIT CLOSER. IN OUR GOOD FAITH EFFORT, AS STATED IN THE RESOLUTION TO START BRINGING THE EMPLOYEES ALL TO $15 AN HOUR.

ONE OF THE THINGS THAT WE ALSO DISCUSSED WAS POSSIBLY MAKING IT SO THAT EVERYONE COMING IN, ALL THE NEW EMPLOYEES, WILL START AT $15 AN HOUR AS WELL.

SO SO THAT THAT WAY THEY CAN ALREADY COME IN AT THE $15 AN HOUR RATE.

SO THOSE ARE THINGS THAT DIRECTOR OF FINANCE WILL BE CHIMING IN, THE DEPARTMENT OF HUMAN RESOURCES AS WELL, AND START LOOKING AT, AT AT THOSE NUMBERS AND ASSESSING THEM.

WE'RE DOING A COST ASSESSMENT ON EACH ONE.

AND OF THE EMPLOYEES BASED ON THE THE HOURLY RATE.

SO WE'VE ALREADY STARTED WORKING ON THAT.

SO WHERE DOES THIS NUMBER WHERE DOES THIS PUT PUT US IF WE ADOPT THIS ADJUSTMENT HOW MANY EMPLOYEES DO WE HAVE AN IDEA THAT WE'LL STILL NEED TO MAKE BELOW THE RANDOM NUMBER? I DIDN'T BRING IT WITH ME. I COULD JUST GET THAT UP.

JUST CURIOUS. I KNOW THERE WAS A CERTAIN NUMBER WHEN THIS WAS LOOKED AT.

THERE WOULD BE APPROXIMATELY 300, I BELIEVE, EMPLOYEES WE WERE LOOKING AT AT FIRST OF ALL, TO SEE IF THIS 3% WOULD BE APPROVED.

AND THEN LOOKING AT, AT THE THE VARIANCE BETWEEN THE WHATEVER THAT NEW RATE AND THAT THE THE, THE ENTRY LEVEL THAT, THAT $15 IT IS SOMETHING THAT TO BE LOOKED AT AND TOTAL FOR ALL EMPLOYEES ESPECIALLY LIKE MISS AYALA MENTIONED, LOOKING AT EVERYBODY, FOCUSING ON THE PEOPLE THAT ARE NOT AT 15 AND SEEING THE IMPACT SOME PEOPLE THAT ALTHOUGH THEY'RE IN A IN A GRADE THAT STARTS AT 15 OR $12 BECAUSE THEY'VE BEEN HERE A WHILE, THEY'RE ALREADY AT AT 14, 15. SO WE NEED TO TAKE THAT INTO CONSIDERATION ALSO, AND HOW IT AFFECTS US THINKING THAT THE FIRST TWO, TWO LEVELS, FIRST TWO GRADES, BUT TO DO SOMETHING THAT'S REASONABLE AND FAIR TO EVERYONE. SO IT WILL TAKE A LITTLE BIT OF TIME TO, TO RUN SOME NUMBERS AND, AND LOOK AT THAT BECAUSE THERE IT WILL AFFECT ANYBODY COMING IN AND ALSO THE CURRENT EMPLOYEES THAT ARE HERE.

OKAY. CAN YOU PUT THE SLIDE ON THERE ON THE TAX RATE, THE NO NEW REVENUE TAX RATE AND ALL THAT.

DO WE HAVE THAT OR. THAT SECOND PAGE I THINK YES.

YES. ALL RIGHT. THERE.

YES, SIR. YEAH. IF Y'ALL COULD ZOOM IN TO THAT BOTTOM PART.

SORRY. THE WAY IT WAS, JUST SO IT COULD BE SEEN.

I JUST WANTED THAT TO BE COVERED REAL QUICKLY.

[00:50:01]

YES, SIR. AND OBVIOUSLY THAT'S THE.

IT SHOWS THE AMOUNT OF REVENUE RIGHT THAT THAT GENERATES BASED ON THAT TAX RATE.

RIGHT. BUT THE INCREASE IF WE WERE TO STAY, YOU KNOW, FOR EXAMPLE, THERE'S A NO NEW REVENUE TAX RATE, 0.6054. THAT'S AS IF THERE'S NO REVENUE GAIN, RIGHT? THAT'S THE RATE THAT WILL BE ADJUSTED. AND THEN THERE'S THE THE MAXIMUM TAX RATE THAT THE CITY COULD ADOPT WITHOUT TRIGGERING AN ELECTION.

THIS IS ACTUALLY NOT IN THE MIDDLE. IT'S ACTUALLY A LITTLE BIT CLOSER TO THE NO NEW REVENUE TAX RATE. IS THAT CORRECT? IS THAT. YES, SIR. BECAUSE OF THE AMOUNT OR WHERE IS THAT? I WAS JUST CURIOUS. WELL, AS FAR AS THE $0.63 IS, BECAUSE THAT'S WHAT'S BEEN.

WE'VE HAD AND WE JUST SHOWED IT AS A PROPOSED AND A CURRENT.

GOT IT. SO IT'S A SET RATE THAT'S BEEN SET BY BY COUNCIL.

SO IT WAS NOT AN AVERAGE OR A THAT WAS A WHAT WHAT'S IN PLACE RIGHT NOW.

AND THAT THE TOTAL TAX LEVY ON THAT IS THAT'S WHERE THE 45.3 MILLION.

IS THAT CORRECT? THE AD VALOREM? YES. 97%. IT'S IT'S ACTUALLY 44 MILLION WITH A FOR DEBT SERVICE AND A GENERAL GENERAL FUND. SO YOU'LL SEE THE THE NEXT THE 08,000,161 89 THAT GOES TO OUR DEBT SERVICE, OUR DEBT PAYMENTS AND AT LEAST 36,033,001 87 FOR GENERAL FUND OPERATIONS.

IT'S GOOD. GOT IT. OKAY.

ALL RIGHT. WELL, THOSE ARE THE ONLY OTHER QUESTIONS I HAD.

COUNCIL. IS THERE ANYTHING ELSE? IF NOT ANYTHING ELSE? CITY MANAGER. AS WE TALKED ABOUT, I THINK THE NEXT STEP IS THAT PUBLIC HEARING ON SEPTEMBER 17TH. YES.

AND THE PROPOSED ADOPTION OF THE BUDGET.

YES, SIR. HOPEFULLY WE CAN TAKE A MAYOR AND COUNCIL WITH A VOTE ON ON PROPOSED THIS NEXT MEETING AT 6:00, AND THEN WE CAN PUBLISH THAT, AND THEN WE'LL HAVE THE SECOND MEETING.

WE'LL HAVE THE PUBLIC HEARING FOR THE FOR THE TAX RATE TO ADOPT AND ALSO FOR THE BUDGET, HOPEFULLY, UNLESS YOU ALL ARE REQUIRE ANOTHER WORK SESSION OR SOMETHING.

RIGHT. AND SO JUST TO FINALIZE THINGS THE ON THIS DEBT SERVICE THAT AMOUNT 8.1 IS THAT TAKE INTO ACCOUNT ISSUING POTENTIAL DEBT OR IT DOESN'T.

SO WHAT'S GOING TO HAPPEN.

SHOULD WE ISSUE. COS DOES THAT THEN NEED TO BE ADJUSTED OR.

NO IT WON'T BE ADJUSTED THIS NEXT YEAR.

WE DO HAVE A DEBT SERVICE FUND BALANCE ALSO THAT IF ANY ANY AND IT WILL BE STRUCTURED WHERE THAT FIRST YEAR IT WILL BE INTEREST ONLY AND WHAT HAVE YOU.

BUT WE DO HAVE SOME FUNDS TO, TO MOVE FORWARD ON, ON THAT CAPACITY THAT WE BASED ON THE CERTIFIED ROLES THAT WE HAVE.

THAT'S CORRECT. YES, SIR. GOT IT. OKAY.

VERY WELL. I'LL JUST ASK COUNSEL, I THINK YOU ALL FORWARDED THIS LIST OF ALL THE BOND PROJECTS, IF YOU ALL CAN TAKE A LOOK AT THEM, BECAUSE THOSE ARE SOME OF THE AMOUNTS THAT ARE, I GUESS, AVAILABLE THAT WE COULD POSSIBLY ISSUE. SO WE CAN TAKE A LOOK AT THAT.

THAT'D BE GREAT. SO ALL RIGHT, IF THERE'S NO OTHER QUESTIONS,

[6. ADJOURNMENT]

SECOND, A MOTION SECOND TO ADJOURN.

ALL IN FAVOR, RAISE YOUR RIGHT HAND. ALL OPPOSED? SAME SIGN. WE'RE NOW ADJOURNED.

IT'S FIVE.

* This transcript was compiled from uncorrected Closed Captioning.