[Call to Order]
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I NOW INCLUDE THE PLAINTIFF CITY COUNCIL'S CONVENED IN OPEN SESSION THAT ALL COUNCIL MEMBERS ARE PRESENT.
COUNCIL MEMBER WILLIAMS WILL BE HERE SHORTLY.
[I. Overview of 2022-23 Budget & Community Investment Program (CIP)]
THE OVERVIEW OF THE 20 22 23 BUDGET AND COMMUNITY AND INVESTMENT PROGRAM.MARK, HONORABLE MAYOR AND CITY COUNCIL MEMBERS.
I'M PLEASED TO PRESENT YOU WITH MY RECOMMENDED
[II. Recommended 2023-24 Budget & Community Investment Program (CIP) ]
BUDGET FOR FISCAL YEAR 2324.THE CITY MANAGER'S RECOMMENDED BUDGET ENCOMPASSES THE ORGANIZATIONAL AND COMMUNITY VALUES THAT HAVE MADE PLANO THE PREMIER CITY IN NORTH TEXAS.
I'D LIKE TO BEGIN WITH THANKING TEAM PLANO FOR THEIR DEDICATED WORK ON THIS BUDGET.
DURING THE BUDGET PROCESS, I MET WITH EACH COUNCIL MEMBER TO HEAR THEIR PRIORITIES FOLLOWED BY MEETINGS WITH EACH DEPARTMENT TO RECEIVE UPDATES ON CITY OPERATIONS.
THE CITY MANAGER'S RECOMMENDED BUDGET RECOGNIZES THE CITY IS CHALLENGED TO KEEP UP WITH SERVICE DEMANDS AND EXPECTATIONS FOR EXCELLENCE IN A POST COVID ENVIRONMENT.
THIS YEAR, THE CITY SPENT THE FIRST HALF OF THE YEAR STUDYING FINANCIAL CHALLENGES OF MATURE CITIES AND COLLECTING FEEDBACK FROM THE BUSINESS COMMUNITY.
THIS STRATEGIC EFFORT CONFIRMED THE COMMUNITY STILL WANTS TO HAVE HIGH LEVELS OF SERVICES.
PLANO IS KNOWN FOR, HOWEVER, THE CITY WILL SEE A SLOWING OF NEW REVENUE FROM GREENFIELD DEVELOPMENT AND WILL TRANSITION TO A LARGER FOCUS ON INFRASTRUCTURE, MAINTENANCE, COMMERCIAL AND CORPORATE REDEVELOPMENT, AND LONG-TERM REVENUE SUSTAINABILITY.
THE CITY HAS EXHAUSTED ALL PREVIOUS APPROPRIATED FEDERAL FUNDS.
THESE FUNDS BUFFERED THE CITY AND ALLOWED US TO WEATHER THE COVID ECONOMIC ROLLERCOASTER WITHOUT IMPACTING SERVICE LEVELS.
ADDITIONALLY, OVER THE LAST FOUR YEARS, THE CITY HAS PASSED THE AT TAX RATE, AT OR NEAR THE NO NEW REVENUE RATE, WHICH WAS AIDED BY THESE FEDERAL FUNDS.
THIS YEAR, THE CITY AND COMMUNITY HAVE SEEN SIGNIFICANT INFLATION, CONTINUED SUPPLY CHAIN DISRUPTION AND LABOR SHORTAGES, ALL OF WHICH ARE AFFECTING THE ORGANIZATION'S FINANCIAL CONDITION.
ADDITIONALLY, WE WILL CONTINUE TO SEE PROPERTY TAX REVENUE REDUCTIONS, INCLUDING COMMERCIAL PROPERTY TAX THAT IS REMOVED THROUGH CHAPTER 42, APPEALS TAX REVENUE TAKEN AWAY THROUGH PUBLIC FACILITY CORPORATIONS, AS WELL AS ADDITIONAL SAVINGS FOR SENIORS WHO HAVE HAD THEIR PROPERTY TAXES FROZEN.
IN TOTAL, THESE THREE SOURCES WILL REMOVE $10 MILLION MORE THAN $10 MILLION WORTH OF REVENUE FROM THE BUDGET.
THESE CONDITIONS ARE ALSO REFLECTED IN THE 2324 CITY MANAGER'S RECOMMENDED BUDGET WHILE MAINTAINING STAFFING AND INDUSTRY LEADING SERVICE LEVELS.
THE CITY OF PLANO IS THE BEST VALUE FOR ANY CITY IN THE D F W REGION AND PROS POSSIBLY ACROSS THE STATE OF TEXAS.
THIS IS DUE TO A COMMITMENT TO THE GOALS WHICH HAVE MADE PLANO THE CITY OF EXCELLENCE.
WHILE MANY CITIES ACHIEVE ONE OR TWO OF THESE GOALS, THE ABILITY TO BALANCE ALL FIVE EACH YEAR MAKES PLANO THE ENVY OF MANY COMMUNITIES.
THE CITY MANAGER'S RECOMMENDED BUDGET CONTINUES BALANCING THE SAME FIVE GOALS THAT MAKE PLANO THE CITY OF EXCELLENCE.
AND THOSE GOALS ARE MAINTAINING OUR FINANCIAL POLICIES.
SO THE BUDGET BEFORE YOU IS MAINTAINS A BALANCED BUDGET AND THE CITY'S COMMITMENT TO SOUND FINANCIAL POLICIES, INCLUDING MAINTAINING RESERVES, FUNDING LIABILITIES ANNUALLY, PAYING CASH FOR MAINTENANCE ITEMS, AND FULLY FUNDING ENTERPRISE FUNDS THROUGH FEES.
THE CITY HAS ALSO BEGUN A FIVE-YEAR FINANCIAL ROADMAP THAT WILL BE FULLY IMPLEMENTED DURING FISCAL YEAR 2324 TO CREATE MORE PREDICTABILITY FOR FUTURE BUDGET CYCLES FOR PERSONNEL.
THE 2324 RECOMMENDED BUDGET INCLUDES FUNDING FOR A 3% ACROSS THE BOARD, INCREASE COMPENSATION PLAN, ADJUSTMENTS, TRAINING, AND EQUIPMENT IN 38 NEW POSITIONS.
THE SALARY INCREASE TOTAL $7.3 MILLION ACROSS ALL FUNDS, AND THE NEW POSITIONS TOTAL $3.3 MILLION.
THE CITY'S IN THE PROCESS OF EVALUATING OUR COMPENSATION PLAN PHILOSOPHY AND EXPECT RESULTS IN THE FALL OF 2023.
ADDITIONALLY, IN ORDER TO KEEP UP WITH THE MARKET, AN ADJUSTMENT TO THE LONGEVITY PAY FROM $4 PER MONTH OF SERVICE TO $8 PER MONTH OF SERVICE IS INCLUDED, WHICH TOTALS $1.3 MILLION.
QUALITY INFRASTRUCTURE IS ITEM THREE OF OUR GOALS, AND THE CITY IS A MATURE CITY, AND WE HAVE PRIORITIZED MAINTENANCE AND REPAIR OF OUR CITY ASSETS.
THE COMMUNITY INVESTMENT PROGRAM WILL INCLUDE $300 MILLION WORTH OF PROJECTS DURING FI FISCAL YEAR 2324.
ADDITIONALLY, PRIOR C I P PROJECTS THAT ARE COMING ONLINE REQUIRE OPERATIONS AND MAINTENANCE FUNDING OF $1.3 MILLION, AND THAT INCLUDES FIVE POSITIONS FOR SERVICE, SERVICE AND PROGRAMS. THERE ARE NO NEW PROGRAMS OR SERVICES INCLUDED IN THIS BUDGET, BUT THE CITY WILL CONTINUE TO PROVIDE A HIGH VALUE OF PROGRAMS AND SERVICES FOR OUR CITIZENS AND BUSINESSES FOR AFFORDABILITY AND PROPERTY TAX.
THE AVERAGE HOME VALUE IN THE AVERAGE RESIDENTIAL HOME VALUE IN PLANO IS UP 14, 2 14 0.2% OVER THE PREVIOUS YEAR IS NOW AT $564,111.
JUST AS A REFERENCE POINT IN 2019, IT WAS $379,000.
SO WE'VE SEEN 48% INCREASE OVER THAT TIMEFRAME, AND FOR MOST FAMILIES, THAT IS THEIR MOST SIGNIFICANT ASSET.
SO SEEING A 48% INCREASE IN THAT, THAT PORTFOLIO, UM, IS POSITIVE.
BUT WE ALSO UNDERSTAND THE IMPACTS THAT HAS.
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BILL GOES, IT'S IMPORTANT TO REMEMBER THAT THE CITY HAS THE MAXIMUM 20% HOMESTEAD EXEMPTION AND A SENIOR TAX FREEZE.A TOTAL OF 7.7 MILLION IN SAVINGS IS PROJECTED FOR THE 75 65 AND OVER TAX FREEZE, WHICH IS AN INCREASE OF $2 MILLION OVER LAST FISCAL YEAR.
AND LAST WHILE MARKET VALUE ON PROPERTY CAN INCREASE SIGNIFICANTLY, THE STATE OF TEXAS LIMITS AND CAPS HOMESTEAD PROPERTY VALUE AT 10% PER YEAR FOR ANY PLUS ANY NEW IMPROVEMENTS.
WHILE THE RECOMMENDED BUDGET TONIGHT, UM, INCLUDES ALL THE REQUESTS TO MEET SERVICE DEMANDS, IT'S IMPORTANT TO NOTE THIS BUDGET IS A WORK IN PROGRESS.
STAFF HAS NOT RECEIVED FINAL NUMBERS FROM OUR APPRAISAL DISTRICTS.
KAREN HAS BEEN WORKING ON THAT, INCLUDING THIS AFTERNOON AND OVER THE NEXT SEVERAL WEEKS.
INFORMATION REGARDING THE NO NEW REVENUE AND NO NEW REVENUE TAX RATE AND THE VOTER APPROVAL TAX RATE WILL BE PRESENTED TO THE CITY COUNCIL FOR DISCUSSION.
SO WHAT WE'RE PRESENTING TONIGHT MAY CHANGE A LITTLE.
IF THERE'S AN ADJUSTMENT, STAFF WILL HAVE THOSE CHANGES AND IMPACTS CALCULATED AT THE AUGUST 14TH MEETING.
ADDITIONALLY, THE MAJORITY OF THE DISCUSSION IS TYPICALLY FOCUSED ON PROPERTY TAXES THIS YEAR.
I NEED TO MAKE NOTE THAT OUR COSTS AND WATER AND SEWER AND ESPECIALLY THE ENVIRONMENTAL WASTE SERVICE FUNDS HAVE INCREASED DUE TO OUR CONTRACTS AND THE CONDITIONS OF THOSE FUNDS.
THE CITY MANAGER'S BUDGET PASSES THROUGH INCREASED COSTS INTO THOSE RATES TO MAKE SURE THAT THOSE FUNDS PAY FOR THEMSELVES THROUGH THOSE FEES.
IN CONCLUSION, I WANT TO THANK MY EXECUTIVE TEAM, ESPECIALLY MY DEPUTIES, SHELLY, SAM, JACK, AND LASH SEAN FOR ALL THEIR WORK AND HELPING PUT THIS BUDGET TOGETHER.
AND I ESPECIALLY WANT TO THANK KAREN RHODES WHITLEY AND HER EXCELLENT TEAM IN THE BUDGET DEPARTMENT WHO HAVE WORKED TIRELESS TIRELESSLY TO PUT TOGETHER THIS BUDGET.
WITH THAT, KAREN, COULD YOU PLEASE PRESENT
[III. Budget Presentation]
THE 2324 BUDGET? GOOD EVENING, KAREN RHODES WHITLEY, BUDGET DIRECTOR.MARK WENT THROUGH HIS PRIORITIES, SO HE DID FOCUS ON, UH, SEVERAL OF THEM, THOUGH IT WHEN HE WAS ADDING HIS PERSONNEL, INCLUDING PUBLIC SAFETY AND SECURITY, QUALITY INFRASTRUCTURE, C I P, AND THEN THE ECONOMIC DEVELOPMENT.
WE'RE GONNA BE ADDING AN ECONOMIC DEVELOPMENT MANAGER.
THE COMBINED BUDGET RESOURCES, WHICH ARE YOUR REVENUES TOTAL $806 MILLION.
THIS IS BOTH PROPERTY TAXES AND SALES TAX.
TOTALS 356 MILLION, AND YOUR SECOND IS CHARGES FOR SERVICES, WHICH TOTALS ABOUT 270 MILLION, AND THE MAJORITY OF THAT IS GOING TO BE YOUR WATER AND SEWER CHARGES.
UH, FOR CITIZENS WATER AND SEWER, THE COMBINED BUDGET EXPENDITURES TOTALS 729 MILLION.
THE NUMBER ONE, ONCE AGAIN, THIS HAS BEEN GOING ON THE LAST COUPLE YEARS AS WATER AND SEWER ACCOUNTS FOR 27.3%.
AND OF COURSE, THAT'S DUE TO THE CONTRACT RATE THAT WE HAVE WITH NORTH TEXAS MUNICIPAL WATER DISTRICT NUMBER TWO IS WHAT WE PROVIDE FOR OUR PUBLIC SAFETY, AND THAT'S $187 MILLION OR 25.6% OF THE OVERALL, UH, BUDGET.
I WILL STATE THIS, THE, UH, BUDGET EXPENDITURES FOR ALL THE FUNDS, 7 29 YEAR C I P, WHICH WE WILL DISCUSS HERE IN A MINUTE.
SO WE'RE NEARLY AT 1.1 BILLION FOR YOUR WHOLE BUDGET.
ON THE GENERAL FUND SIDE, TOTALS $392 MILLION.
THE NUMBER ONE EXPENDITURE, OF COURSE, IS GOING TO BE YOUR PUBLIC SAFETY.
SECOND IN LINE, THERE IS NON-DEPARTMENTAL, WHICH HOUSES ALL YOUR TRANSFERS.
OUR TRANSFERS ARE THE ONES THAT GO INTO THE CAPITAL MAINTENANCE FUND.
IT GOES INTO FUND THE PROPERTY AND LIABILITY LOSS FUND, SO THAT'S YOUR SECOND LARGEST EXPENDITURE, WHICH ACCOUNTS FOR $90 MILLION.
WE ALWAYS WANNA SHOW THIS CHART, EVEN THOUGH INFLATION IS EASING UP ACCORDING TO THE US BUREAU OF LABOR STATISTICS, IT IS NOT EASING UP AS FAR AS OUR DEPARTMENTS ARE CONCERNED, AND WITHIN THE BUDGET, WE HAVE HAD TO ADD IN AN ADDITIONAL $2.7 MILLION DUE TO INFLATIONARY COSTS THAT HAVE HIT US THIS LAST YEAR, PLUS MANDATES THAT HAVE COME ABOUT FROM FEDERAL AND STATE MANDATES.
SO WE DO HAVE ALL THAT INFORMATION, AND WE HAVE INCLUDED THAT 2.7 MILLION WITHIN THE BUDGET.
NOW, LET'S TALK ABOUT PROPERTY TAXES.
AS MARK MENTIONED, WE'RE STILL COLLECTING DATA.
WE ARE WAITING FOR THE SOFTWARE THAT WE UTILIZE TO COME UP WITH THE TRUTH IN TAXATION RATES OR THE VOTER APPROVAL RATE AND NO NEW REVENUE RATE.
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WE'RE WAITING FOR THAT TO BE UPDATED BASED ON SOME DIFFERENT CHANGES THAT THE STATE ARE DOING.BUT I HAD AN EXCEL SPREADSHEET, AND THESE ARE PRELIMINARY NUMBERS.
WE PLAN ON GOING OVER THE WHOLE TAX RATE WITH Y'ALL AT THE MONDAY, AUGUST 14TH WORK SESSION.
IT'S LOOKING LIKE RIGHT NOW WE MAY HAVE A NEW NEVER NEW, NO NEW REVENUE RATE OF 38.65 CENTS.
CURRENTLY WHAT IS INCLUDED IN THIS BUDGET IS 41.76 CENTS, OR OUR NORMAL, UH, RATE FROM THIS SHARE THE VOTER APPROVAL RATE, WHICH ALLOWS YOU TO ADD 3.5% ON TOP OF YOUR NO NEW REVENUE RATE IS AT 40.60 CENTS.
AS WE MENTIONED BEFORE, THESE ARE NOT FINALIZED.
THEY SHOULD BE FINALIZED NEXT WEEK THOUGH.
WHAT IS GOING ON HERE? JUST LET Y'ALL KNOW IF WE GO DOWN TO THE VOTER APPROVAL RATE, AND THAT'S YOUR RATE THAT YOU CAN PASS ALONG AND WE DON'T NEED AN ELECTION AND IT ACCOUNTS, IT GIVES YOU 3.5% OVER WHAT YOU COLLECTED LAST YEAR.
IF WE PASS THAT ALONG, WE NEED TO CUT FROM THE BUDGET, $6.2 MILLION.
IF YOU WERE TO GO ALL THE WAY DOWN TO THAT 38.65 CENTS, WE WOULD NEED TO COME UP WITH $17 MILLION OUT OF THE BUDGET.
SO ANYWAY, WE JUST WANTED TO GO AHEAD AND START GIVING Y'ALL A HEADS UP.
MARK, DID YOU WANNA SAY ANYTHING ON THAT? MAYOR AND COUNCIL? KAREN AND I HAVE ALREADY DISCUSSED WHERE WE'RE GONNA GO FOR THE $6.2 MILLION, AND WE'LL HAVE DETAIL ON THAT ON THE 14TH.
OKAY, SO WE'RE GOING TO GO OVER THE WHOLE PROPERTY TAX RATE ON AUGUST 14TH AT THAT MEETING, Y'ALL WILL HAVE TO DECIDE WHAT YOU WANT ME TO PUBLISH THE NEXT DAY IN THE NEWSPAPER.
UH, AND THEN WE WILL GO FORTH FROM THERE.
AND THEN OF COURSE, YOU HAVE THE ADOPTION OF THE TAX RATE ON SEPTEMBER 11TH.
THIS IS JUST TO GIVE YOU A GLIMPSE.
NOW, THIS IS THE AVERAGE HOME VALUE.
WHAT THE AVERAGE HOME VALUE IS, IT ALREADY ACCOUNTS FOR YOUR 20% HOMESTEAD OUT.
IT IS TOTALLY DIFFERENT THAN YOUR MARKET VALUE.
LAST YEAR, THE AVERAGE HOME VALUE WAS $338,000.
THIS YEAR, THE AVERAGE HOME VALUE IS $373,000.
OKAY? THERE'S A DIFFERENCE OF $34,000.
THAT'S ALL DUE TO THE INCREASE IN THE EXISTING PROPERTY VALUE.
AS MANY OF Y'ALL KNOW, ACCORDING TO STATE LAW, WE CANNOT GO OVER 10% INCREASE ON YOUR PROPERTY VALUES AS FAR AS TAXING PURPOSES.
SO IF EVERYTHING WAS TO REMAIN THE SAME, UH, AVERAGE HOME VALUE, THEY WOULD SEE AN INCREASE OF $144.
NOW, IF WE GO DOWN TO THE VOTER APPROVAL RATE, THE TAX RATE WOULD GO FROM 41.76 CENTS DOWN TO 40.60 CENTS.
THAT WOULD BE THE DIFFERENCE OF THAT.
YOU'RE STILL, THEY'RE STILL GOING TO HAVE AN INCREASE OF A HUNDRED DOLLARS.
AND ONCE AGAIN, THAT IS DUE TO THE FACT THAT EXISTING PROPERTY VALUES HAVE GONE UP.
THIS IS A LOOK UP AT YOUR ASSESSED PROPERTY VALUES.
THIS YEAR WE'RE NEARLY AT $58 BILLION AS FAR AS THE TOTAL GOES.
THE MAJORITY OF THIS, ONCE AGAIN, CAME FROM EXISTING PROPERTY VALUES.
$4.7 BILLION IS WHAT THE INCREASE ON EXISTING PROPERTY VALUES IS.
AT THE NEXT MEETING, I WILL HAVE THE BREAKOUT AND SHOW YOU WHAT CAME IN FROM RESIDENTIAL AND WHAT CAME IN FROM COMMERCIAL.
WE JUST RECEIVED ALL THE INFORMATION TODAY.
UH, YOU DID HAVE NEW GROWTH OF $727 MILLION.
THIS IS A LOOK AT YOUR TAX REVENUE AND THE REVENUE SAVINGS THAT ARE COMING ABOUT FROM EXEMPTIONS.
THIS DOES NOT HAVE ANY HOMESTEAD EXEMPTION ON IT.
IT DOESN'T HAVE ANY SENIOR TAX FREEZE.
THIS IS, YOU KNOW, WHAT IT CAN GO FOR IN THE MARKET IS NOW $564,000.
WE ARE SAVING, ARE OFFERING BOTH THE RESIDENTS AND COMMERCIAL REVENUE SAVINGS FROM EXEMPTIONS TOTAL $61.8 MILLION.
MARK HAD ALREADY MENTIONED THIS.
THE REVENUE SAVINGS FROM THE 65 AND OVER TAX FREEZE IS NOW INCREASED THIS LAST YEAR, $2 MILLION.
SO WE HAVE EVEN MORE RESIDENTS THAT ARE TURNING 65 AND TAKING ADVANTAGE OF THIS TAX FREEZE.
THIS IS THE AVERAGE MARKET VALUE FOR A HOME WITH ALL THE OTHER
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ENTITIES THAT THEY PAY TAXES ON.I'M SURE Y'ALL ARE AWARE THAT THE STATE LEGISLATURE WERE GOING, THEY'RE GONNA DO A VOTE ON NOVEMBER 7TH, WHICH HAS P I S D OR THE INDEPENDENT SCHOOL DISTRICTS GOING FROM 40,000 FOR THEIR EXEMPTION UP TO A HUNDRED THOUSAND, I WOULD ASSUME IT WOULD PASS.
IT PROVIDES SAVINGS FOR A CITY OF PLANO, P I S D OF $730 FOR THE YEAR.
SO THIS IS THE TOTAL RIGHT NOW, 8,716.
NOW, ALL THESE RATES ARE THE RATES THEY HAD FOR THE 2223.
A LOT OF THEM ARE TRYING TO DECIDE JUST LIKE Y'ALL ARE, WHAT ARE RATES GONNA BE? SALES TAX HAS DONE REALLY, REALLY WELL.
AND OF COURSE IT MAINTAINS OUR FINANCIAL POLICIES.
WE HAVE BEEN UNDER A SALES TAX CAP POLICY FOR QUITE A WHILE, SINCE 2008.
UH, THIS YEAR WE TAKE THE AVERAGE OF THE SALES TAX, WHAT HAS BEEN COLLECTED FOR THE LAST THREE YEARS.
WE NET OUT ANY AUDIT ADJUSTMENTS, AND THEN WE GO IN AND ADD AN INFLATIONARY FACTOR WITHIN THERE.
HOWEVER, OVER THE YEAR WHEN YOU CALCULATE IT OUT, WE HAVE INCREASED THAT BY 6% BECAUSE THAT'S REALLY WHAT YOUR AVERAGE WAS OVER THIS LAST YEAR.
THE RESULT OF ALL THAT, THOSE ARE JUST SOME FUNDING INITIATIVES THAT WE'VE DONE SINCE 2008 WITH THE, UH, EXTRA SALES TAX, 24.9 MILLION, GOING TO CAPITAL MAINTENANCE, 2 MILLION TO A RAINY DAY FUND, 6.8 TO ECONOMIC DEVELOPMENT.
AT THE END OF THE DAY, WHEN WE AVERAGED THE WHOLE CAP OUT, WE COLLECTED $108 MILLION IN 21 22, 22 23.
WE ARE RETIMING AT 114 MILLION.
IT MOST LIKELY WE'VE GOT THREE MONTHS LEFT.
AT THE END OF THE DAY AFTER SEPTEMBER, MARK WILL COME BACK TO Y'ALL.
IF IT COMES OVER THAT AMOUNT, SAY IF IT'S AT ONE 16 AND WE HAD ESTIMATE OF ONE 14, THAT 2 MILLION, Y'ALL DECIDE WHERE IT'S GONNA GO.
SOMETIMES YOU THROW IT IN A CAPITAL MAINTENANCE THIS LAST YEAR, YOU PUT IT IN THE RAINY DAY FUND, IT CAN GO FOR ONE-TIME EXPENDITURES.
SO IT'S A VERY GOOD PROGRAM THAT WE HAVE.
THE THREE YEAR AVERAGE FOR NEXT YEAR IS $110.7 MILLION.
THAT TAKES YOUR THREE YEAR AVERAGE, AND WE HAVE INCREASED IT ONCE AGAIN BY AN INFLATIONARY FACTOR THAT THAT'S WHAT'S UP WITH SALES TAX.
HERE ARE SOME BUDGET HIGHLIGHTS THAT ARE INCLUDED.
AS MARK MENTIONED, WE HAVE NO NEW PROGRAMS OR SERVICES INCLUDED.
THE GENERAL FUND IS BUDGETED AT 30 DAYS.
WE DO HAVE, GOING INTO THE ECONOMIC DEVELOPMENT INCENTIVE FUND, $11.4 MILLION, WHICH EQUATES TO 2 CENTS ON THE TAX RATE.
WE DO HAVE A 3% ACROSS THE BOARD, UH, FOR ALL EMPLOYEES.
NON-CIVIL SERVICE AND CIVIL SERVICE TOTALING $7.3 MILLION.
WE'VE GONE IN AND INCREASED LONGEVITY PAY FROM $4 TO $8 PER MONTH PER SERVICE EMPLOYEE.
THE DIRECT RESULT OF THAT IS ALL OUR NEIGHBORING CITIES ARE DOING THE SAME THING.
UH, PUBLIC SAFETY PROGRAMS HAVE ADDED IN OR GIVEN THEM $12.9 MILLION FOR THIS NEXT YEAR'S BUDGET.
THAT INCLUDES 12 ADDITIONAL POSITIONS.
THE INCREASE IN NORTH TEXAS MUNICIPAL WATER DISTRICT CONTRACT COSTS TOTALS $9.7 MILLION.
WE HAD RECEIVED INFORMATION FROM THEM ON JUNE 30TH.
I HAVE BEEN HEARING THROUGH THE GRAPEVINE, THOUGH, NORMALLY THEY GIVE US EVEN BETTER NUMBERS AT THE END OF JULY, THE WATER YEAR WILL END JULY 31ST.
RIGHT NOW, THEY HAVE AN 11% INCREASE GOING IN FOR WATER.
WE ARE NOT PUSHING FORTH THE 11%.
WE DID VERY, VERY WELL LAST YEAR BECAUSE OF ALL THE SUNSHINE AND NOT RAINING LAST YEAR.
SO WE ARE ONLY PUTTING FORTH A 6% INCREASE, NOT THE 11% WE ARE MAINTAINING FOR RIGHT NOW.
THE CAPITAL MAINTENANCE FUND TRANSFER AT $35.3 MILLION FOR THE DENTAL FUND.
WE HAVE LIBRARY BOOKS, INCLUDING DIGITAL MATERIALS AT 1.4 MILLION C I P COMING ONLINE TOTALS $1.3 MILLION AND INCLUDES FIVE POSITIONS PLUS EQUIPMENT, MATERIALS, SUPPLIES, AND ADDED MAINTENANCE.
THAT ADDITIONAL REQUIRED FUNDING
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I TALKED ABOUT FOR INFLATIONARY FACTORS.ANYWAY, THAT'S AT $2.7 MILLION.
THAT ALSO INCLUDES SOME FEDERAL MANDATES, STATE MANDATES THAT WE HAVE HAD COME ON.
THIS IS A LISTING OF ALL THE NEW BUDGETED POSITIONS OR 38 IN TOTAL.
WE'VE GOT FIVE FOR C I P COMING ONLINE AND THE REMAINING OF THE GENERAL FUND.
YOU WILL SEE THAT LIST ON THE RIGHT HAND SIDE.
SO IN THE GENERAL FUND, YOU GOT $3.2 MILLION COMING ON IN YOUR SALARY AND BENEFITS FOR NEW POSITIONS, ALL OF THESE SHOULD BE STARTING OR THEY'RE PROGRAMMED IN TO START OCTOBER 1ST.
WE STILL ARE HAVING SOME ISSUES IN HIRING PEOPLE, BUT FOR RIGHT NOW, BUDGETING PURPOSES, WE DO HAVE THEM BEGINNING OCTOBER 1ST.
THE OTHER POSITIONS THAT WE HAVE, WE HAVE ONE OVER IN WATER AND SEWER, ONE IN CONVENTION AND TOURISM.
THE MUNICIPAL GOLF COURSE NEEDS A CREW LEADER.
WE HAVE SEVERAL OVER IN THE TECHNOLOGY SERVICES DEPARTMENT AND THEN ONE IN EQUIPMENT MAINTENANCE.
SO THE TOTAL COST OF ALL NEW POSITIONS IS $4.4 MILLION.
C I P OPERATING EXPENDITURES COMING ONLINE TOTALS $1.3 MILLION.
IT INCLUDES COSTS FOR THE, UH, FIRE STATION NUMBER FIVE, AND WE'RE GOING TO HAVE TO LEASE A FACILITY FOR PUBLIC WORKS BECAUSE WE'RE GONNA BE REDOING THAT BUILDING.
WE'RE GONNA HAVE TO HAVE SOMEWHERE FOR THEM TO GO.
OVER IN THE PARKS AND REC SIDE, WE HAVE, UH, VEHICLE AND EQUIPMENT FOR AN ADDITIONAL FULL-TIME POSITION.
ALSO, WE HAVE ATHLETIC INFLATIONARY FACTORS, UH, GOING FOR OUR ATHLETIC FIELD MAINTENANCE BECAUSE THE CONTRACT COSTS HAVE INCREASED ENGINEERING AND PUBLIC WORKS OR ADDING ADDITIONAL FULL-TIME POSITIONS DUE TO THE EXPANDED PROJECT LOAD COMING FROM PROJECTS THAT WERE VOTED ON IN THE 2021 BOND AUTHORIZATION.
OKAY, WATER AND SEWER, AS WE MENTIONED BEFORE, WE ARE GONNA HAVE A RATE INCREASE.
NORTH TEXAS AT THIS MOMENT IS PASSING ON AN 11% INCREASE.
WE ARE ONLY GOING, WE ONLY NEED A 6% INCREASE.
SO THAT'S WHAT WE HAVE PROGRAMMED IN HERE.
UH, BASED ON PUBLIC WORKS, WHAT THEY SEE AS FAR AS HOW MUCH WE'RE GOING TO USE ON WATER THIS YEAR, IT'S 21.1 BILLION GALLONS BY JULY 31ST.
UH, WE DO HAVE A REVISED TAKER PAY WATER GALLONS.
WHEN WE BEGAN THIS WHOLE THING, IT USED TO BE 27.6.
ANYWAY, THEY'RE GRADUALLY COMING DOWN THANKS TO LEGAL.
I MEAN, PAGE AND MARK IN GETTING THAT CONTRACT, UH, REDONE FOR THIS NEXT YEAR'S 25.1 BILLION IS WHAT THEY'RE ESTIMATING ON THE WASTEWATER TREATMENT AND UPPER EAST FORK INTERCEPTOR.
WE'RE GONNA HAVE A COST INCREASE OF 2.4 MILLION, WHICH WILL REQUIRE A 3% WASTEWATER INCREASE.
ALL RATES ARE ASSUMED TO BEGIN NOVEMBER 1ST, 2023.
IN ADDITION, DUE TO THE FACT THAT WE HAVE GONE EXTRA, UH, FUNDS BECAUSE IT'S BEEN SO HOT, WE WERE ABLE TO INCREASE INTO THE WATER AND SEWER.
C I P THE YEAR BEFORE WE DID 12.5 MILLION LAST YEAR, WE DID 17.5.
WE WERE ABLE TO GO UP TO $20 MILLION.
THE WATER AND SEWER, C I P DESPERATELY NEEDS THAT.
UH, AFTER THIS YEAR, IT COMPLETELY GOES INTO THE RED, AND IN FACT, NEXT YEAR WE WILL BE BACK TO Y'ALL.
WE HAVE THREE REALLY BIG PROJECTS IN THERE, AND IT HAS TRIPLED THE COST ON EACH OF THOSE PROJECTS.
WE'RE NOT GONNA BE ABLE TO HANDLE THAT BY PAYING CASH.
SO WE WILL BE LOOKING TO SELL SOME REVENUE BONDS TO PAY FOR THOSE BIG PROJECTS.
IN ADDITION, WE HAVE LOANED THE SUSTAINABILITY AND ENVIRONMENTAL WASTE FUND $2.5 MILLION.
THE SOLID WASTE FUND HAS BEEN PLAGUED WITH VERY DIFFERENT PROBLEMS THIS NEXT YEAR.
INCREASED CONTRACT COSTS, RISING FUEL COSTS, THEIR EQUIPMENT HAS GONE UP.
FOURFOLD THAT WE ARE HAVING TO PURCHASE THE RECYCLING REVENUE IS A NO MORE ENTITY THERE.
SO STARTING IN OCTOBER 1ST, 2024, THEY WILL PAY THE WATER AND SEWER FUND BACK.
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A CONSULTANT, NEWGEN STRATEGIES AND SOLUTIONS, AND THEY'RE GOING TO BE, UH, PROVIDING A PRESENTATION TO CITY COUNCIL, HOPEFULLY AUGUST 17TH, UH, TO LET EVERYBODY KNOW WHAT THEY FEEL THAT THE SOLID WASTE RATE INCREASE SHOULD BE, SO WE CAN GO AHEAD AND GET THEM OUT OF THE HOLE FOR EVEN NEXT YEAR.WITH ALL THIS SAID AND DONE, THE FUND IS PROJECTED AT 79 DAYS OF WORKING CAPITAL, WHICH IS RIGHT IN LINE WITH WHERE WE WANT IT TO BE.
NORMALLY OUR FINANCIAL POLICY, WE LIKE IT TO BE AT 60 DAYS.
THE ENVIRONMENTAL WASTE FUND, I JUST TOUCHED ON THIS, WE'RE GOING TO GO THROUGH WHAT THEY PROPOSED, THE RATE INCREASE TO BE FOR SOLID WASTE.
WE HAVE CONTACTED, UH, VARIOUS CITIES IN THE METROPLEX.
IT SEEMS LIKE THEY'RE ALL GOING UP ON SOLID WASTE.
UH, YOU'LL, UH, GET A GLIMPSE OF THAT ON AUGUST 17TH.
C I P I MENTIONED THIS EARLIER.
THE MAJORITY OF THAT IS FOR STREETS, 104 MILLION PARKS AND REC CENTERS, 61 MILLION WATER AND SEWER 42 MUNICIPAL DRAINAGE 24.
WE ARE GONNA REQUIRE A GENERAL OBLIGATION BOND SALE OF $75 MILLION TO KEEP UP, UH, FIRE STATION'S, FIVE AND EIGHT REMODELING.
ALSO SEVERAL COMMUNITY AND NEIGHBORHOOD PARK RENOVATIONS, AND OF COURSE YOUR STREET REPAIRS.
WE WILL BE ISSUING A TAX NOTE OF APPROXIMATELY $7 MILLION.
THIS TAX NOTE WILL GO TO FUND SEVERAL THREE DIFFERENT VERY HIGH PROFILE TECHNOLOGY PROJECTS THAT WE COULD NOT FIT IN THE ACTUAL BUDGET AND CASH FUND THEM.
THEY INCLUDE A PHONE SYSTEM REPLACEMENT, A FIRE STATION ALERTING SYSTEM, AND MOBILE NETWORK REPLACEMENT AND STANDARDIZATION, AND, UH, MOBILE NETWORKING ASSETS FOR PUBLIC SAFETY VEHICLES.
AT THE END OF THE DAY, WE HAVE A FINANCIAL POLICY THAT SAYS WE LIKE TO TRANSFER IN AN AMOUNT THAT'S EQUAL TO 75% OF THE ANNUAL DEPRECIATION.
YOU'LL SEE THAT BLIP IN F Y 22, 21, 22 90 6%.
THAT WAS DUE TO CARES FUNDING.
WHEN WE RECEIVED SOME OF THOSE FEDERAL, UH, FUNDS, WE THREW THEM IN THERE AND THAT WENT FOR A CERTAIN PROJECT THAT I CAN'T REMEMBER OFF THE TOP OF MY HEAD.
BUT ANYWAY, WE'RE BACK WHERE WE'RE ABOUT AT 75%.
COUPLE OF ITEMS ON THE BUDGET CALENDAR THAT ARE COMING UP.
OF COURSE TONIGHT, THE CITY MANAGER SUBMITTED HIS RECOMMENDED BUDGET AND C I P THIS WILL BE AVAILABLE ON THE CITY'S WEBSITE AND THE LIBRARIES TOMORROW.
WE HAVE SCHEDULED A TOWN HALL MEETING ON AUGUST 10TH, WHICH WILL GO OVER THE BUDGET.
AND THE C I P AUGUST 14TH IS GONNA BE A VERY BIG NIGHT.
YOU HAVE THE PRESENTATION REGARDING THE PROPOSED CAPITAL IMPROVEMENT PROGRAM.
WE ALSO WILL HAVE A PUBLIC HEARING ON THE OPERATING BUDGET AND THE C I P AND THEN YOU WILL NEED TO DETERMINE WHAT YOUR PROPOSED TAX RATE WILL BE, BECAUSE WE WILL NEED TO PROVIDE THAT IN THE NEWSPAPER THE NEXT DAY.
AND THEN YOU WILL APPROVE THE CERTIFIED TAX ROLE.
WE HAVE MOVED THE COUNCIL BUDGET WORK SESSION.
NORMALLY WE HAVE 'EM ON A SATURDAY.
WE ARE GONNA TRY A THURSDAY EVENING STARTING AT FIVE O'CLOCK.
THIS ALSO WILL INCLUDE THE GRANT FUNDING AT THAT SAME WORKSHOP, UH, AUGUST 28TH, I HAVE A PUBLIC HEARING ON THE TAX RATE.
NORMALLY WHAT Y'ALL DO, EVEN THOUGH THE LAST COUPLE OF YEARS YOU'VE DONE THE NO NEW REVENUE RATES, YOU DON'T EVEN HAVE TO HAVE A PUBLIC HEARING.
BUT NORMALLY Y'ALL LIKE HAVING A PUBLIC HEARING, SO I WENT AHEAD AND PUT THAT IN.
AND THEN SEPTEMBER 11TH, YOU WILL ADOPT THE BUDGET.
C I P SET THE TAX RATE, AND WE MOST LIKELY WILL HAVE A PUBLIC HEARING ON THAT NIGHT.
AND THEN OCTOBER 1ST WE BEGIN AGAIN.
OH, TOMORROW, ALL, ALL THIS WILL BE IN ALL THE LIBRARIES CLEAR ON OUR CITY WEBPAGE, AND WE'VE ALREADY, UH, UPDATED, UH, OPEN BUDGET WEB PORTAL OR A DASHBOARD FOR THE CITY OF PLANO.
IT'S ALREADY OUT THERE AT THIS TIME.
CAN YOU GO ALL THE WAY BACK TO THE SLIDE THAT HAD THE SURE.
TAX RATE AND THE, THE CHART WITH THE CHANGES
[00:30:01]
BASED ON WHAT WE SAID, THE TAX RATE WITH THE HOMEOWNER, THE INCREASE? YES.IS THIS THE ONE YOU'RE TALKING ABOUT? YES.
NOW THAT'S WHAT THE VOTER APPROVED RATE.
BUT YOU MADE A COMMENT, YOU SAID EVEN IF WE ADOPT THE PROPOSED RATE VERSUS THE VOTER APPROVED RATE, I WANNA MAKE SURE THAT I HEARD YOU RIGHT.
YOU SAID IT'S STILL GOING TO BE YES.
THAT'S WHERE I'M, YOU'RE STILL GONNA HAVE AN INCREASE, EVEN IF YOU WENT DOWN ALL THE WAY DOWN TO THE NO NEW REVENUE RATE AND THE SAME THING HAPPENED LAST YEAR, OR THAT Y'ALL REALLY BEEN ADOPTING IT FOR THE LAST FOUR YEARS, YOU STILL HAVE AN INCREASE IN THE INCREASES DUE TO THE CHANGE IN THE PROPERTY VALUE.
IF YOU'RE, IF IT HAD NOT CHANGED, YOU WOULDN'T HAVE AN INCREASE.
BUT THAT ALL HAS TO DO WITH THE CHANGE IN THE PROPERTY VALUE.
BUT DO YOU KNOW WHAT THE DIFFERENCE IN THE INCREASE WOULD BE? KNOW WHAT THE DIFFERENCE IS ON WHAT? WELL, YOU SAID ON HERE, CHANGE FROM PRIOR YEAR IS A HUNDRED, A HUNDRED DOLLARS UHHUH.
DO YOU HAVE, DO YOU KNOW WHAT THE CHANGE WOULD BE AT THE DIFFERENT RATES RIGHT HERE? YOU'RE SAYING THAT THE CHANGE WOULD BE A HUNDRED DOLLARS FOR THE VOTER APPROVAL RATE, RIGHT? YES.
SO DO YOU KNOW WHAT THE AVERAGE CHANGE WOULD BE AT THE ADOPTED TAX RATE? SO THIS IS THE ADOPTED TAX RATE, SO IT WOULD BE 144? YES.
AND THEN WHAT WOULD IT BE AT THE NO NEW REVENUE RATE? I DO NOT HAVE THAT YET.
I WILL, I'LL HAVE, WE REALLY, WERE HUSTLING JUST TO GET THIS PART.
WE JUST GOT, IN FACT, COLLIN COUNTY THIS AFTERNOON SENT ME, OH, WE MADE A MISTAKE OVER HERE, SO WE HAD TO REDO EVERYTHING.
I WILL HAVE ALL THAT FOR YOU IN AUGUST 14TH.
AND THEN MY NEXT QUESTION WAS ABOUT, OH, DID YOU HAVE, OKAY.
UM, YOU MENTIONED SEVERAL TIMES ABOUT HAVING, I THINK IT WAS SOMETHING AROUND $2 MILLION BUILT IN BECAUSE OF FEDERAL STATE MANDATES THAT HAVE COME DOWN TO US.
DO YOU HAVE MORE SPECIFICS ON WHAT THOSE ARE, UM, WHAT THOSE COSTS ARE? I WILL, HOLD ON JUST ONE SECOND.
WE CAN GET, WE CAN GET YOU A SPECIFIC LIST IF YOU'D LIKE THAT, IF SHE DOESN'T HAVE IT RIGHT WITH HER.
AND THEN MY LAST QUESTION WAS ON THE, UM, ON THE LIST OF NEW EMPLOYEES THAT WE'RE GONNA HIRE, I SAW ONE THAT SAID, UH, I THINK IT SAID UNDER THE GENERAL FUND ARTS AND EVENTS COORDINATOR.
SO I WAS CURIOUS WHY THE ARTS AND EVENTS COORDINATOR WOULD BE UNDER THE GENERAL FUND VERSUS, UH, EITHER THE, THAT IS UNDER THE SPECIAL EVENTS, WHICH IS MICHELLE HAWKINS, AND I WANT TO SAY THEY'RE HIRING A PRODUCTION COORDINATOR FOR, I THINK THE COURTYARD THEATER IN MAYOR PRO TEMA.
THE, WE'VE HAD A, A SEVERAL EXTENSIVE, UH, CONVERSATIONS ABOUT HOTEL MOTEL TAXES MM-HMM.
AND THE, THE OPINION WE'RE HAVING RIGHT NOW IS, UM, IT STARTS TO STRETCH THINGS, UH, PRETTY THIN AS WE'RE LOOKING AT OPERATIONAL COSTS VERSUS, UH, TRUE ELEMENTS THAT ARE DEDICATED TO PUTTING HEADS IN BEDS, INCLUDING MARKETING ALONG THOSE LINES.
SO THAT'S THE REASON WHY THAT CONTINUES TO BE IN THE GENERAL FUND VERSUS CONVENTION AND TOURISM.
AND JUST REAL QUICK ON GOING BACK TO THE 2.7, I'M JUST GONNA READ Y'ALL OFF A COUPLE OF THINGS.
CITYWIDE NOTIFICATION POSTAGE, APPARENTLY NOW IN PLANNING, THEY HAVE TO MAIL OUT, UH, THESE DIFFERENT REQUIREMENTS.
WE HAVE SEVERAL LISTING OF T C F P REQUIREMENT CHANGES.
THE MAJORITY OF THESE ARE IN INFLATIONARY, THOUGH, IN PRACTICALLY EVERY SINGLE BIG DEPARTMENT LIKE PARKS AND REC, FIRE STATIONS, POLICE, THEIR EQUIPMENT COSTS HAS JUST GONE THROUGH THE ROOF.
SO THAT'S WHAT WE ARE CONSIDERING.
INFLATIONARY COSTS, WE HAD TO ADD TO THEIR BASIC BUDGET SO THEY, THEY COULD ACTUALLY PURCHASE WHAT IS REQUIRED.
AND IT BASICALLY, YOU'RE JUST KEEPING THE SAME SERVICE LEVEL.
IT'S JUST COSTING SO MUCH MORE THINGS.
THINGS LIKE P P E, THINGS LIKE, UM, CHEMICALS AND MATERIALS.
CHEMICAL THINGS OF THAT, THAT NATURE.
CONTRACT COSTS FOR MOWING, WATER QUALITY MONITORING.
WHAT OTHER QUESTIONS? I'M GOOD.
[00:35:01]
COUNCIL MEMBER HORNE? YES.GREAT PRESENTATION FOR, TO GET MORE DETAIL, UH, I DO HAVE A QUESTION ABOUT THE NORTH TEXAS MUNICIPAL WATER DISTRICT AND THEIR REQUEST FOR 11% RAISE OR INCREASE.
UM, A LOT OF THAT IS THAT SOME IS INCLUDED WITH A RECAPTURE OF FUNDS FOR THE DEVELOPMENT OF BOAR LAKE AND INFRASTRUCTURE ASSOCIATED WITH THAT.
IS THAT WHERE, PARTICULARLY WHERE THEY'RE LEANING TOWARD IS, DO YOU KNOW THAT ANSWER? I DUNNO THAT ANSWER.
I KNOW THAT COUNCILMAN, IT'S, IT'S, THEY'RE SUFFERING A LOT OF THE SAME INFLATIONARY PRESSURES WE'RE HAVING, UH, BOTH ON THE LABOR SHORTAGES AND HAVING TO, TO PAY MORE FOR LABOR.
THEY HAVE THE SAME SORT OF INFLATIONARY PRESSURES ON CHEMICALS AND ELECTRICITY THAT WE'RE SEEING, BUT BOAT ARC IS A HUGE, HUGE DEBT PAYMENT THAT THEY'RE HAVING TO MAKE.
SO THERE IS A LOT ASSOCIATED WITH THAT AS WELL.
SO THERE'S A SIGNIFICANT AMOUNT OF CAPITAL THAT THEY'RE WORKING ON.
BUT YEAH, THEIR, THEIR PRESSURES THAT THEY HAVE, A BIG PIECE OF THAT HAS BEEN AN INCREASE OVER THE LAST COUPLE YEARS HAS BEEN DUE TO BODARK, BUT IT'S NOT EXCLUSIVE TO THAT.
SO, A SECOND THING I WANT TO ADD ONTO THAT, AND YOU, SOME OF YOU MAY BE AWARE OF THIS, THE QUOTE UNQUOTE FOREVER CHEMICAL.
IT'S P A S POLYFLUORINATED ALKALINE SUBSTANCE, BUT IT'S A WHOLE LIST OF, OF COMPOUNDS ASSOCIATED WITH THESE FOREVER CHEMICALS.
IT'S BASICALLY AT TRI ATTRIBUTED TO, UH, SCOTCH GUARD, UH, FOAM FOR FIREFIGHTING, A F F FOAM, UH, FOR FIREFIGHTING AND STUFF.
AND WE'RE FINDING IT INTO OUR GROUNDWATER, UH, CURRENTLY THE E P A REGION SIX AND NATIONWIDE LEANING TO, UM, UH, A MAXIMUM CONTAMINATION LEVEL OF FOUR PARTS PER TRILLION.
HAVE THEY STARTED INVESTIGATING, FIRST OF ALL, I THINK, ARE THEY GONNA BE LOOKING AT THE ANALYSIS OF THIS, THESE P F A SS COMPOUNDS? AND SECOND, HAVE THEY LOOKED AT OPTIONS ON HOW TO TREAT THE, UH, WATER TO MEET THE M C L LEVELS? DO YOU KNOW IF THEY'VE EVEN CONSIDERED THAT PART OF THIS LEVEL 11% INCREASE? COUNCILMAN, I'LL JUST SHARE THAT.
I THINK I MADE A C IN CHEMISTRY, SO HALF OF THAT WAS A LITTLE BIT, UM, BEYOND ME.
UH, SO, BUT I'M HAPPY TO FIND OUT FROM THEM, UH, ON THE P A S AND GET A REPORT FROM, FROM THE WATER DISTRICT AS FAR AS WHAT SORT OF OPERATIONAL, UM, UH, DRIVERS THAT, THAT MIGHT HAVE, AS WELL AS JUST THEIR OVERALL APPROACH TO THINGS.
I, AND AGAIN, THE, THE, THE FOUR PARTS PER TRILLION THAT THE E P A, IT IS STILL BEING BANTERED ABOUT.
IT'S STILL SUPPOSED TO BE OPEN FOR PUBLIC COMMENT, BUT I WILL DARE SAY THAT IF CALIFORNIA IS PUSHING FOR THAT TYPE OF RESTRICTIVE, UH, TREATMENT, THAT THE REST OF THE E P A REGIONS WILL FOLLOW SUIT.
AND THEN, UM, WE'RE GONNA SEE THAT THERE'S GONNA BE A HICCUP THERE.
AND SO THAT'S SOMETHING THAT WE, UH, MADE TO NEED TO ADDRESS.
COUNCIL MEMBER RICK ELLI, DO YOU HAVE ANY OH, YES.
UM, SO FIRST OF ALL, KAREN, I WANTED TO SAY THANK YOU FOR, YOU KNOW, TO YOU AND YOUR TEAM, UH, INCLUDING CASEY, WHO I SEE THERE YEAH.
FOR ALL OF THE, THE HARD WORK THAT I KNOW HAS GONE INTO THIS.
UM, ONE THING BEFORE I, UH, DIVE INTO MY QUESTIONS THAT I WANTED TO REQUEST WAS, AS YOU GUYS WORK THROUGH, UH, THE INFORMATION FROM, UH, FROM THE APPRAISAL DISTRICTS MM-HMM.
AND I HAD TOLD YES, I HAD TOLD, UH, MARK BEFORE THEY'RE SUPPOSED TO HAVE THAT SOFTWARE UPDATED BY MONDAY.
SO REALLY, WE SHOULD HAVE A FINALIZED NUMBER BY MONDAY.
OH, THAT'S A DEFINITE, THAT'S A DEFINITE.
THANK YOU SO MUCH FOR THAT, KAREN.
YOU KNOW, INFORMATION FROM OUTSIDE THAT WE HAVE TO WAIT TO GET, UH, DIVING INTO THOSE QUESTIONS.
THE FIRST WAS, UM, I NOTED IN THE, IN THE KIND OF NARRATIVE DISCUSSION, THE, THE LETTER, UH, UH, FROM MARK AT THE BEGINNING OF THE BUDGET, THE MENTION OF A DOZEN MULTIFAMILY COMPLEXES COMING OFF OF THE TAX RULES.
OBVIOUSLY WE KNOW THAT, UH, PUBLIC FACILITIES, CORPORATIONS HAVE HAD A SIGNIFICANT IMPACT ON OUR TAX BASE.
DO WE HAVE A NUMBER FOR, UH, EXACTLY HOW MUCH PROPERTY TAX REVENUE, UH, IS NOT BEING COLLECTED BY THE CITY? BECAUSE THOSE PROPERTIES ARE NO LONGER ON THE TAX ROLL? I DID NOT HAVE A NUMBER.
IT'S CLOSE TO 3 MILLION CLOSE.
THAT'S, I WAS GONNA SAY, I'LL JUST CALL HIM UP AND THEY'LL GIVE ME A NUMBER, BUT HE ALREADY HAS IT
WELL, HEY, BUT, BUT BETWEEN, BETWEEN YOU GUYS, I, I KNEW YOU'D HAVE THE ANSWER, SO THANK YOU FOR THAT.
THEN, UH, SECONDLY, UM, JUST DOING SOME MATH, I NOTICED THAT, YOU KNOW, THE, THE AVERAGE HOMEOWNER BEING AT, UH, $1,414 LAST YEAR AT THE, UH, LAST YEAR'S ADOPTED RATE OF, UH, 41.76 CENTS.
UM, WE WOULD, YOU KNOW, THEY'D BE UP $144, WHICH I THINK IS, IS A 10.2% INCREASE MM-HMM.
[00:40:01]
AND I KNOW THAT, UH, THERE'S, THERE'S KIND OF SOME, SOME VOODOO MAGIC IN THE, UH, UH, IN THE, UH, VOTER APPROVAL RATE FORMULA, LIKE SOME THINGS WITH, UH, TOURS, YOU KNOW, ZONES AND, AND OTHER THINGS THAT COME OUT.BUT THERE'S, I WAS JUST CURIOUS WITH A, WITH A THREE POINT HALF PERCENT VOTER APPROVAL RATE, UH, CAP, HOW DO WE END UP WITH THE AVERAGE HOMEOWNER BEING AT A 7% INCREASE? IS IT THAT COMMERCIAL PROPERTIES ARE STAGNANT OR, UM, OR, OR, OR WHAT, YOU KNOW, SUCH THAT RESIDENTIAL PROPERTIES ARE SEEING A BIGGER PART OF THE INCREASE, OR, OR WHAT ARE THE, THE FACTORS THEY'RE HITTING HOMEOWNERS? YES.
AND THE, THAT'S THE CONVERSATION WE'RE GONNA HAVE ON AUGUST 14TH.
I DID NOT HAVE TIME NORMALLY ON THE 14TH, AND REALLY LAST YEAR, I THINK I DID IT ON THIS MEETING BECAUSE WE RECEIVED THE INFORMATION SO MUCH QUICKER.
ANYWAY, YOU WILL SEE, UH, JUST OFF THE TOP OF MY HEAD, I'M SURE THE MAJORITY OF THAT EXISTING PROPERTY INCREASE, WHICH IS $4 BILLION MM-HMM.
I REALLY THOUGHT IT'D START SLOWING DOWN THIS YEAR, BUT IT DID NOT.
WE ALSO HAVE TO REMEMBER THAT PROPERTY TAXES AND ASSESS PROPERTY VALUES, IT'S LIKE A YEAR IN IT.
SO I'M HOPING NEXT YEAR WE WILL START SEEING DECREASES ON THOSE INCREASES.
AND THEN HOPEFULLY MORE, MORE, MORE SO WE'LL BE TALKING YES, WE WILL BE TALKING IN MUCH MORE DETAIL ON AUGUST 14TH.
AND THEN, YOU KNOW, HOPEFULLY SEE THE, YOU KNOW, AS YOU SAID, NEXT YEAR MM-HMM.
THE RESIDENTIAL, UH, PROPERTY TAX BASE.
UM, THEN A, UH, A FINAL QUESTION, UH, REGARDING, UH, OR I GUESS, I GUESS MAYBE A, A STATEMENT AND, AND PLEASE CORRECT ME IF I'VE DONE MY MATH WRONG, BUT, UH, IF I'M REMEMBERING CORRECTLY, UH, DURING MY FIRST BUDGET ON THE COUNCIL, SIX YEARS AGO, I THINK WE WERE AT 48.86 CENTS, UH, PER HUNDRED DOLLARS EVALUATION MM-HMM.
AND, UM, AND, AND, AND NOW, UM, IF WE, UH, IF WE LOOK AT, YOU KNOW, SUPPOSE WE ENDED UP AT THE VOTER APPROVAL RATE OF 40.60 CENTS.
UM, I WAS JUST LOOKING AT THE, THE, THE PERCENTAGE OF PROPERTY TAXES THAT ARE DEVOTED TO, UM, TO, UH, ECONOMIC DEVELOPMENT.
UM, YOU KNOW, OBVIOUSLY OUR, OUR POLICY, THERE IS 2 CENTS OF, UH, OF, OF PROPERTY TAXES, NO MATTER HOW MUCH 1 CENT OF PROPERTY TAXES IS WORTH.
YOU KNOW, ECONOMIC DEVELOPMENT, AS WE WERE JUST DISCUSSING A COUPLE DAYS AGO, IS CRITICALLY IMPORTANT.
AND WE, WE NEED FUNDING TO BE ABLE TO MAINTAIN PLANOS COMMERCIAL TAX BASE BECAUSE THAT'S, YOU KNOW, IF WE LOSE THAT, THEN WE'RE, WE'RE GONNA SEE RESIDENTS PAYING EVEN MORE TO, TO, TO FILL THAT GAP IF, IF THAT COMMERCIAL PROPERTY TAX BASE GOES AWAY.
THAT BEING SAID, UM, IT LOOKS TO ME LIKE WE WERE AT 4.1% OF PROPERTY TAX REVENUE.
YOU KNOW, IF MY MATH IS CORRECT, GIVE OR TAKE BEING UTILIZED FOR ECONOMIC DEVELOPMENT, UH, YOU KNOW, SIX YEARS AGO DURING MY FIRST YEAR ON COUNCIL, AND IF I'VE DONE THE MATH CORRECTLY, I THINK WE'RE AT 4.9% NOW.
UM, YOU KNOW, FOR AN INCREASE OF, OF ALMOST 20% IN THE AMOUNT OF, UH, THE, THE, THE PERCENTAGE OF PROPERTY TAX REVENUE THAT'S BEING USED FOR ECONOMIC DEVELOPMENT, OBVIOUSLY THAT'S AN IMPORTANT GOAL.
BUT ONE THING I'D LIKE TO EVALUATE DURING THIS PROCESS, AND TONIGHT MAY BE PREMATURE, BUT I'D LOVE TO SEE, INSTEAD OF SAYING 2 CENTS OF PROPERTY TAXES GOING TO ECONOMIC DEVELOPMENT, THAT WE SAY THAT IT'S THIS YEAR'S AMOUNT PLUS INFLATION FOR NEXT YEAR.
SO THAT AS WE CONTINUE TO, YOU KNOW, HAVE TO KNOCK DOWN THE, THE NUMBER OF CENTS PER A HUNDRED DOLLARS OF VALUATION THAT WE'RE COLLECTING IN PROPERTY TAXES, WE'RE, YOU KNOW, WE DON'T END UP WITH A DISPROPORTIONATELY LARGE SHARE BEING USED FOR ECONOMIC DEVELOPMENT.
AND, YOU KNOW, AS PART OF THAT DISCUSSION, I'D ALSO LOVE TO SEE US LOOK AT INDEXING, UH, THE BUFFINGTON COMMUNITY SERVICE GRANTS TO INFLATION RATHER THAN POPULATION GROWTH.
BECAUSE OBVIOUSLY WE KNOW POPULATION'S NOT GROWING VERY FAST.
UH, PROPERTY VALUATIONS ARE GROWING VERY FAST.
SO WE HAVE, YOU KNOW, DIFFERENT, I GUESS, ALLOCATION METHODOLOGIES THAT ARE SEEING, YOU KNOW, THE AMOUNT FOR ECONOMIC DEVELOPMENT GREATLY INCREASE THE AMOUNT FOR, YOU KNOW, SOCIAL SERVICES THROUGH THE BUFFINGTON COMMUNITY SERVICE GRANTS NOT INCREASE AT THE SAME RATE.
SO ANYWAY, I'D LOVE TO LOOK AT, AT BOTH OF THOSE THINGS, MAYBE INDEXING THEIR INCREASES TO INFLATION.
SO, WELL, COUNCILMAN YOU, YOU, YOU'RE A LITTLE AHEAD OF ME, BUT THAT'S GOOD.
UM, I, I HAVE ACTUALLY TALKED WITH KAREN ABOUT CAPPING THE, UH, AMOUNT OF TRANSFER TO THE ECONOMIC DEVELOPMENT FUND AT $10 MILLION PER YEAR, UH, INCLUDING, UH, A C P I ADJUSTMENT, UM, GOING FORWARD, UM, AS A WAY OF HELPING ADDRESS THAT $6.2 MILLION SHORTFALL.
AND SO WE'VE, WE'VE HAD THOSE DISCUSSIONS.
WE THINK THAT THAT WOULD BE A RECOMMENDATION THAT WE HAVE THAT STILL ADDS A MEANINGFUL, UM, CONTRIBUTION TO, UH, ECONOMIC DEVELOPMENT, WHICH BY THE WAY, WILL BE COMING BACK ON THE 14TH WITH A DISCUSSION
[00:45:01]
ABOUT LAND BANKING AS WELL.UM, BUT I WANTED TO, TO TELL YOU THAT WE HAVE ALREADY HAD SOME OF THOSE DISCUSSIONS ABOUT PUTTING A CAP ON THAT, UM, DUE TO SOME OF THE, UH, ELEMENTS THAT YOU HAD, BUT ALSO THE, THE ASPECT OF WE THINK THAT THAT'S A SUFFICIENT, UH, TRANSFER TO BE ABLE TO FUND THAT, UH, ON AN ANNUAL BASIS.
AND, UH, THANK YOU, MARK, AS USUAL.
YOU'RE ONE STEP AHEAD OF ME, AND I'VE GOTTA SAY, I DON'T BELIEVE YOU MADE THAT C IN CHEMISTRY, SO
UM, I'VE GOT A HANDFUL OF QUESTIONS.
UH, UM, IF YOU DON'T KNOW ANYTHING, I'M SURE WE'LL TAP MARK, UM, EXCEPT ON CHEMISTRY QUESTIONS.
UM, SO IF I READ THIS RIGHT, I THINK THE ANTICIPATED DART REIMBURSEMENTS ARE ATTRIBUTED TO THE INDIVIDUAL PROJECTS THAT WE'VE PEGGED THEM FOR.
UM, IS THAT ACCURATE? AND THEY'RE REFLECTED IN THE BUDGET? SO THE, THE DART PROJECTS THAT WE HAVE RIGHT NOW, AS, AS YOU'LL REMEMBER WHEN WE WENT THROUGH SAYING HOW WE WANTED TO APPROACH DART, IS WE, WE WERE NOT GOING TO INCORPORATE THE DART FUNDS IN TO THE BUDGET BECAUSE WE FELT LIKE AT ANY GIVEN TIME, COUNCIL MAY MAKE THE DECISION TO CEASE HAVING THE I L A.
SO WE WERE GOING TO TAKE THAT AND, AND APPROACH THAT, BUT THE FUNDS THAT COME BACK FROM DART, WHICH BY THE WAY, WE JUST SUBMITTED ANOTHER RECEIPT, AND I THINK IT WAS FOR $1.4 MILLION, THOSE FUNDS WERE GONNA GO BACK TOWARDS THE C I P.
THE IDEA WAS THAT IS TAKING THOSE FUNDS AWAY, TAKING THOSE FUNDS AND REPLENISHING THEM BACK TO THE C I P, AND THAT MIGHT IN TURN IMPACT THE SIZE OF THE NEXT BOND REFERENDUM.
SO WE WERE INTENDING TO KEEP THOSE IN THE C I P.
WE'RE NOT BANKING ON THAT MONEY AS PART OF THIS FISCAL YEAR'S BUDGET.
UM, THE, THE NEXT IS DO WE HAVE, AND I HAVEN'T HAD AN OPPORTUNITY TO REVIEW THIS IN FULL, BUT, UM, DO WE HAVE A PROVISION IN HERE FOR THE RESULTS OF THE COMPENSATION STUDY? UM, I THINK WE DISCUSSED, YES, WE DO.
WE HAVE, UH, $2 MILLION, WHICH INCLUDES THE, UH, COST OF THE CONSULTANT IN ANY KIND OF RECOMMENDATIONS, WHAT WE HAVE SET ASIDE RIGHT NOW.
SO 2 MILLION INCLUDES THE COST OF THE CONSULTANT AND APPLYING ANY RECOMMENDATIONS AND APPLYING WHATEVER THEY COME UP WITH? YES.
AND, UH, FOR REFERENCE, THE 3% ACROSS THE BOARD, UM, PAY INCREASE THAT TOTALED, WHAT, 7 MILLION MM-HMM.
UM, FOR, I, I SAW THE NINE, UH, NEW STAFF MEMBERS FOR FIRE FOR OVER HIRING.
UM, WE HAD DISCUSSED, UH, THE POLICE STAFFING AT A COUPLE OF POINTS IN DURING THE PRESENTATIONS, UM, WHERE THE BEAT OFFICERS WERE BASED ON A CALCULATION, BUT, UH, OTHER OFFICERS INCLUDING, UH, CIVILIAN STAFF WERE BASED ON WHAT DO WE THINK WE NEED, UM, HAVE WE HAD ANY FURTHER DISCUSSIONS ABOUT ADDITIONAL, UH, NEEDS OUTSIDE OF THE BEAT OFFICER MODEL.
SO THAT'S, SOME OF THOSE POSITIONS ARE INCLUDED, INCLUDING DI, DIGITAL MEDIA SPECIALISTS AND, AND FOLKS OF THAT NATURE.
SO THOSE ARE ACTUALLY, ARE INCLUDED IN THE PUBLIC SAFETY LISTING THAT WE HAVE.
SO WE HAVE GONE THROUGH THAT WITH CHIEF DRAIN.
AND WE HAD A SPECIFIC DISCUSSION ABOUT THE OVER HIRE THAT WAS APPROVED BY COUNCIL A FEW YEARS AGO, AND WAS THE, THE NUMBER OF 10 SUFFICIENT.
UM, AND WE HAD A VERY DETAILED DISCUSSION WITH THAT.
CHIEF DRAIN FEELS CONFIDENT THAT IT IS WORKING, AND WE ARE ACTUALLY, UH, KEEPING THAT THE, UM, THE TIMELINE AS SHORT AS POSSIBLE WITH BEING ABLE TO REPLENISH POSITION.
SO HE IS, HE IS, UH, STATED, UH, VERY EMPHATICALLY THAT HE WAS SATISFIED WITH WHERE WE ARE RIGHT NOW, AND THAT HIS, HIS REQUESTS, UH, FOR THIS YEAR ARE INCLUDED WITHIN, UH, WITHIN THAT STAFFING LEVEL.
AND ON, UM, NEIGHBORHOOD SERVICES, IF I RECALL CORRECTLY, UM, IN LAST YEAR'S BUDGET, WE HAD EARMARKED SIX ADDITIONAL ROLES UNDER THE ASSUMPTION THAT WE WOULD BE GOING THROUGH S T R REGISTRATION, ET CETERA.
IT WAS TWO, TWO, I BELIEVE IT WAS TWO POSITIONS.
UM, I'LL, I'LL DOUBLE CHECK, BUT MY RECOLLECTION WAS IT WAS TWO POSITIONS.
WE DID INCREASE THE HEADCOUNT FROM, UM, BY SIX, UH, FROM 20 21, 22 TO 22, 23.
UM, I THOUGHT THEY WERE ALL FOR, UH, THE, THE ASSUMED S T R ACTIVITY.
I, I'LL DOUBLE CHECK, BUT MY RECOLLECTION WAS THERE WAS TWO FOR ST BUT THERE WERE OTHER POSITIONS ADDED IN FOR OTHER CODE, UH, ISSUES AND OTHER INSPECTION, UM, ELEMENTS.
BUT MY, MY RECOLLECTION WAS THERE WAS TWO, BUT I WILL DOUBLE CHECK BECAUSE, UH, I'M GETTING OLDER EVERY YEAR.
SO WE'LL DOUBLE CHECK THAT AND CIRCLE BACK WITH YOU THEN WHETHER, WHETHER IT'S TWO OR SIX THE SAME, UH, QUESTION APPLIES.
UM, I'M ASSUMING BECAUSE WE EARMARKED THOSE POSITIONS, WE HAVE NOT HIRED INTO THOSE S T R POSITIONS, IS THAT CORRECT? YES, I'M PRETTY SURE I, I'D HAVE TO DOUBLE, I WOULD HAVE TO DOUBLE CHECK OUR HIRING BECAUSE WE, YEAH, WE'LL DOUBLE CHECK BECAUSE WE MAY HAVE HIRED IN AND WE, WE MAY BE USING THEM, UM, FOR SOME PURPOSES RIGHT NOW, BUT I DON'T KNOW THAT WE'VE ACTUALLY FILLED THOSE SPECIFIC POSITIONS.
[00:50:01]
LOOKING AT ADDING, EVEN WITH THAT, WE'RE LOOKING AT, AT ADDING AN ADDITIONAL HEAD FOR 2324 IN NEIGHBORHOOD SERVICES, I WOULD ASSUME THAT'S NOTHING TO DO WITH STR.BUT IF WE HAVE, UM, EARMARKED THE S T R STAFF, UM, AND IT TURNS OUT WITH WHATEVER WE END UP DOING WITH STR, WE'RE NOT GONNA NEED THAT STAFF.
WHAT ARE WE GONNA DO WITH THAT, UH, ALLOCATION AT THAT POINT? SO, AS YOU KNOW, WE'RE, UH, AN AGING COMMUNITY.
AND SO WE WOULD LOOK AT THAT, WE WOULD REASSESS THE NEED FOR IT.
AND WHAT WE MAY DO IS NOT FILL THAT FOR A, A PERIOD OF TIME, WAITING TILL, UH, THE NEED COMES UP IN, UM, BOTH PROPERTY MAINTENANCE OR, UH, OTHER, UH, SERVICES THAT THEY HAVE.
BUT IF WE HAD THE AUTHORIZED POSITION, UM, A LOT OF POSITIONS THAT WE GET AUTHORIZED, WE HAVE HAD DIFFICULTY FILLING.
UM, BUT SPECIFICALLY IF WE HAD TO ALLOCATE SPECIFICALLY FOR S T R FOR WHATEVER REASON, THERE WAS A, A LEGAL OPINION, THERE WAS SOMETHING THAT HAPPENED THAT WE NO LONGER, UM, HAVE THE NEED FOR, FOR THOSE POSITIONS, UM, WE WOULD PULL BACK TWO POSITIONS AND, AND SEE WHERE WE GO FROM THERE.
SO WE WOULD, WE WOULD BRING THAT BACK FOR FURTHER EVALUATION.
BUT WE WOULDN'T NECESSARILY JUST AUTOMATICALLY KEEP IT, UM, ALONG THOSE LINES.
ADDRESS THINGS TO RECENTLY COME OUT OF THE LEGISLATURE.
UM, THE FIRST, THE REQUIREMENT FOR SS R O COVERAGE AT ELEMENTARY SCHOOLS.
UM, IS THERE ANY REFLECTION, I KNOW DISCUSSIONS ARE STILL ONGOING WITH P I S D, UM, DO WE HAVE ANY ANTICIPATION OR REFLECTION, UH, OF AN ALLOCATION FOR THAT IN THIS BUDGET? WE HAVE MET, UM, EXTENSIVELY WITH P I S D, WHO IS STILL EVALUATING THEIR OPTIONS FOR COVERAGE AND MAKING SURE THAT THEY ARE COMPLIANT WITH THE LAW.
UM, WE HAVE HAD DISCUSSION ABOUT COST SHARING AND THE CHALLENGES THAT WE HAVE, UH, WITH BEING EVEN ABLE TO RAMP UP THE S R O PROGRAM TO ACCOMMODATE 49 ADDITIONAL POSITIONS.
AND SO FROM RIGHT NOW, WE DON'T HAVE EXTRA SROS SITTING ON THE SHELF.
SO TO HIRE, TO HIRE 49 WOULD BE AN EXTENSIVE PROCESS THAT WE'VE ADVISED WOULD TAKE BETWEEN TWO AND FOUR YEARS.
UM, AND WE WOULD ASK FOR THE SAME, UM, PARTICIPATION, UH, PERCENTAGES THAT WE HAVE.
NOW, THE CHALLENGE WE ALSO HAVE IS THAT THE STATUTORY REQUIREMENT WE HAVE WITH POLICE BUDGETS IS WE CANNOT REDUCE THEIR BUDGET BY A DOLLAR ON A YEAR OVER YEAR BASIS.
SO WE'VE MADE IT, UM, MADE IT CLEAR TO P I S D THAT IT'S A LIFELONG COMMITMENT IF WE GO THAT DIRECTION.
IT LOOKS LIKE RIGHT NOW THEY'RE EVALUATING MULTIPLE OPTIONS.
UM, AND THERE MAY BE AN OPPORTUNITY, WE'RE ACTUALLY GONNA TALK ABOUT IT ON THE 17TH FOR THE CITY TO PARTICIPATE IN SOME OF THOSE SAFETY COSTS.
WE DO NOT HAVE THAT BUILT IN THE BUDGET.
UM, BUT WE THINK THAT COMMUNITY SAFETY IS OBVIOUSLY SOMETHING THAT WE PARTNER IN, WE TAKE VERY SERIOUS, AND WE THINK THAT WE HAVE SOME ROLE AND RESPONSIBILITY WITH THAT.
SO WE'LL BE BRINGING THAT BACK FOR A DISCUSSION FOR, FOR CITY COUNCIL.
AND THE LAST ONE WITH THE, UM, RECENT DEAL THAT WAS STRUCK BETWEEN THE HOUSE AND THE SENATE FOR, UH, PROPERTY TAXES, UM, AND THE INCREASE TO THE HOMESTEAD EXEMPTION, IF I UNDERSTAND THE BILL, RIGHT, THAT'S COVERED BY THE SALES TAX SURPLUS FOR THIS UPCOMING BIENNIUM? UM, I THINK SO.
SO THE, THE A HUNDRED THOUSAND, ONE OF THE, ONE OF THE THINGS IS, IS THAT IF YOU'RE, IF YOU'RE LOOKING AT HOW THE A HUNDRED THOUSAND APPLIES TO, TO HOMESTEADS IN PLANO, I, I THINK THAT'S YOUR QUESTION.
SO IF YOU LOOK AT A HUNDRED THOUSAND VERSUS THE 20% ON THE AVERAGE HOME, 20% OF 564,000 IS MORE THAN A HUNDRED THOUSAND.
SO KEEPING THE 20% WHERE WE ARE ACTUALLY PROVIDES MORE OF A BENEFIT TO THE CITIZENS THAN THE A HUNDRED THOUSAND THAT THE STATE PASSED.
SO WE ARE STILL, UM, ABOVE THE BAR THAT EVEN THE STATE IS SET FOR THEIR A HUNDRED THOUSAND.
SO GOING, GOING TO A HUNDRED THOUSAND WOULD ACTUALLY LESSEN THE BENEFIT TO THE CITIZENS.
SO I'D RECOMMEND WE STICK WITH THE 20%.
AND, UM, DO WE HAVE ANY LINE OF SIGHT INTO WHETHER THERE MIGHT BE AN IMPACT IN THE NEXT BIENNIUM AFTER THE SALES PLA TAX SURPLUS WEARS OFF? UM, UNDERSTANDING THERE'S NO TELLING WHAT'S GONNA HAPPEN WITH, UH, PROPERTY VALUES.
I THINK THERE IS NO LIMITING WHAT MIGHT HAPPEN IN AUSTIN TOWARDS CITIES MM-HMM.
SO I, I DON'T KNOW THAT I WOULD GET INTO A, A PRESCRIPTIVE MODE WITH THAT, BUT I, UH, I CONTINUE TO THINK THAT THEY'RE LOOKING FOR PROPERTY TAX RELIEF AND MOVING MORE TOWARDS A CONSUMPTION TAX.
UM, I THINK THEY'RE PUTTING, UH, PRESSURES TOWARDS, UH, LOCAL GOVERNMENT.
BUT THE, THE BIGGEST ASPECT, AND THIS IS ON THE SLIDE HERE, 5% IS THE SCHOOL DISTRICTS MM-HMM.
OURS, WE OBVIOUSLY HAVE SALES TAX, BUT WE WILL CONTINUE TO WATCH AND MONITOR THOSE, THOSE ELEMENTS.
AND WE HAVE A GREAT, UH, LEGISLATIVE POLICY PERSON THAT WILL BE DOWN THERE FIGHTING FOR US IF THEY DO GO THAT ROUTE.
ANY OTHER QUESTIONS? COUNCIL MEMBER HOMER SMITH.
UH, REALLY JUST KIND OF A, A FOR THINKING, UH, QUESTION FOR, UH, FOR YOU MARK.
[00:55:01]
COUNCIL WILLIAMS TOUCHED ON, UH, PD, UH, ONE THING I WAS, I SAY, YOU KNOW, WE HAVE A 3% ACROSS THE BOARD, UH, BUDGETED HERE, AND I'M LOOKING AT THE, LIKE, THE LINE ITEM ON, UH, PD SALARIES AND WAGES, BUT IT DOES, IT SHOWS THAT THE, THE 2324 CHANGE SHOULD BE 4.2% VERSUS THE, THE 3%.SO I JUST WAS WANTED TO CLARIFY WHI WHICH ONES, WHICH IS IT, WILL IT BE A LITTLE BIT HIGHER OR IS THAT JUST A, SO, UH, COUNCILMAN PART OF IT IS, IS ADDING IN NEW POSITIONS AS WELL.
SO THE ASSUMPTION OF OF POSITIONS IS IN THERE.
THAT'S, THAT'S WHAT I ASSUMED, BUT I WASN'T, WASN'T SURE.
UH, AND THEN ONE OTHER THING FOR, TO, TO CONSIDER, I SHOULD TO, AND WE CAN TALK ABOUT THIS, UH, YOU KNOW, AT OUR NEXT, UH, NEXT MEETING HERE IS, AND IT'S BEEN SOME TIME AGO, I THINK THAT, THAT WE HAD CHANGED.
'CAUSE YOU AND I HAD TALKED ABOUT, YOU KNOW, IT'S IMPORTANT FOR US TO HAVE GOOD PROGRAMS AND PAY TO, YOU KNOW, FOR QUALITY OFFICERS AND TO, AND TO MAINTAIN THE, UH, THE QUALITY THAT, THAT THAT WE HAVE.
UH, AND, AND I KNOW A FEW YEARS BACK, WE HAD HAD CHANGED THE WAY THAT, THAT WE ALLOW OUR, UH, UH, SWORN STAFF TO MOVE THROUGH THE SALARY SCALE TILL THEY, THEY, THEY GET TO THE TOP OF THE SCALE.
AND WE, WE'VE TAKEN THAT AND MOVED IT WHEN IT USED TO BE, WHAT, THREE, THREE YEARS I BELIEVE.
AND IT MOVED UP TO LIKE 20, IT MOVED UP TO LIKE 20, I THINK TO A 20 YEAR, UH, TERM OUT.
UH, IF WE LOOK AT PERHAPS MOVING THAT BACK NOW TO A, A FASTER TRACK, UH, THAT'S NOT NECESSARILY GONNA ADD, YOU KNOW, AN INCREASE IN THE, IN THE BUDGET PER SE, BUT IT WILL.
UH, AND IN ACTUALITY, BECAUSE IF WE'RE RAISING THEM UP QUICKER, IT IS GOING TO HAVE AN IMPACT ON THE BUDGET.
BUT I'D STILL LIKE, LIKE FOR US TO, UH, TO LOOK AT THAT AND IF WE CAN DO SOME KIND OF A, A GUESSTIMATIONS WHAT IMPACT THAT WOULD HAVE OR WE'D HAVE TO MAKE ON THE BUDGET TO, UH, TO ACCOMPLISH THAT.
SO YOU'RE TALKING ABOUT ELIMINATING STEPS SO THEY REACH MAXIMUM, UM, MAXIMUM PAY GRADE FASTER.
SO THAT WILL HAVE, THAT WILL ABSOLUTELY HAVE A, AN IMPACT ON THE BUDGET.
THERE IS ZERO DOUBT THAT, THAT, UH, BECAUSE IT WILL AFFECT, UH, PEOPLE IN POSITION RIGHT NOW.
AND SO IT WILL, IT WILL ABSOLUTELY HAVE AN IMPACT.
AND IT WILL, THERE'S ALSO THE, THE, UH, EQUITY COMPONENTS WHEN YOU START REMOVING, UM, STEPS OF, UH, JUST THE INTERNAL EQUITY SIDE OF THINGS MM-HMM.
THOSE ARE ALL DECISIONS THAT THAT CAN BE MADE.
BUT WE DID LOOK AT, UM, SOME OPTIONS ON THE STEPS.
WHAT I WOULD SAY IS THAT IS PART OF WHAT WE'VE TALKED ABOUT FOR THE COMPENSATION PLAN AND PHILOSOPHY STUDY.
SO WE'VE ACTUALLY LOOKED AT THAT.
UM, AND WHAT I WOULD RECOMMEND IS WE ALLOW THAT, THAT STUDY TO BE COMPLETED, BECAUSE THAT'S PART OF THE ASPECT OF THAT WE'RE LOOKING AT AS WELL.
UM, SO FOR US, I, I THINK THAT WHEN WE'RE DOING THAT, IF WE START, UM, WORKING TO ELIMINATE STEPS AS PART OF THE, THE, UM, THE BUDGET AND THEN COME BACK WITH THAT STUDY, WE'RE KIND OF CHANGING IT MID STUDY.
AND SO I WOULD, UH, I WOULD RECOMMEND THAT WE LET THAT COME BACK, BUT ADDRESS THAT ALSO AT THAT SAME TIME TO MAKE SURE THAT IF IT IS AN ADDRESSED, WE'RE ABLE TO DO THAT AS PART OF THAT STUDY.
AND THAT, THAT'S WHY I BRINGING UP DOWN, BECAUSE I, I THINK, UH, YOU KNOW THAT SOMEWHERE THAT MAYBE THERE'S A, A GOOD MEDIAN IN THERE MM-HMM.
AND THE TARGET HAS ALWAYS BEEN TO TRY TO BE MEDIAN PLUS 5% AND THAT THAT IS LIKELY TO CHANGE WITH THIS PHILOSOPHY STUDY.
AND SO WHEN WE START THAT CHANGE, UM, WHATEVER THAT MIGHT BE, UM, AND PROVIDED THAT THEY, THEY DO RECOMMEND A CHANGE, THAT'S PART OF WHAT THAT $2 MILLION IS TO DO IS NOT ONLY THE STUDY, BUT TAKE STEP, MAYBE STEP ONE TO START POSITIONING US TO, TO MOVE SOME OF THOSE DIRECTIONS.
UM, BUT WE ARE BEING MINDFUL BECAUSE, UH, I'LL TELL YOU THAT I HAVE GREAT RELATIONSHIPS WITH BOTH CHIEFS AND I SEE ONE SITTING BACK UP THERE AT THE TOP.
AND UH, AND WE HAVE HAD DISCUSSIONS ABOUT STEPS.
WE HAVE HAD DISCUSSIONS ABOUT COMPETITIVENESS.
WE HAVE HAD DISCUSSIONS ABOUT COMPENSATION ACROSS THE BOARD.
AND I WILL TELL YOU THAT WE ARE COMMITTED TO MAKING SURE THAT WE ARE, UH, HIGHLY COMPETITIVE FOR, UH, FOR OUR