Link

Social

Embed

Disable autoplay on embedded content?

Download

Download
Download Transcript

[00:00:04]

I NOW DECLARE, THE PLANO CITY COUNCIL IS CONVENED IN OPEN SESSION THAT ALL MEMBERS ARE PRESENT.

[Call to Order]

[Additional Item]

OUR FIRST ITEM ON THE AGENDA IS ITEM ONE.

WE DO HAVE TWO SPEAKERS, AND I'LL GO AHEAD AND LET THEM GO RIGHT UP FRONT.

SO IF WE'LL DO THAT FIRST.

LISA, THAT'D BE GOOD.

THE FIRST SPEAKER IS STEPHEN TOTH.

TOTH. THANK YOU.

MY NAME IS STEVE TOTH.

I'M A RETIRED DALLAS POLICE OFFICER, 44 YEARS, AND MY CURRENT POSITION IS WITH ROLL CALL INDUSTRIES, BEING THE LAW ENFORCEMENT LIAISON FOR THE COUNTRY AND ADVOCATE FOR THE LAW ENFORCEMENT AGENCIES.

WE ARE A DFW BASED COMPANY, AND WE ARE FOUNDED BY A CAREER TEXAS LAW ENFORCEMENT OFFICER FROM EAST TEXAS FROM THE CHEROKEE SHERIFF'S DEPARTMENT.

STEPHEN, JUST WANT TO ASK YOU REAL QUICK, HOW DID ALL OF THESE THREE ITEMS ON THE AGENDA IS THE BUDGET? YES. AND SO I JUST WANT TO MAKE SURE YES, THIS DOES PERTAIN TO THAT.

OKAY. I'LL BE QUICK AND TO THE POINT.

NO, IT'S IT'S SO YOU GET YOUR THREE MINUTES.

I JUST WANTED I JUST WANT TO MAKE SURE WE UNDERSTOOD THAT IT THAT IT NEEDED TO BE SPECIFICALLY ABOUT THE BUDGET.

YES, SIR. IT IS, IT IS BUDGET SPECIFIC.

SPECIFIC. CURRENTLY, WE SERVE OVER ABOUT 60,000 LAW ENFORCEMENT OFFICERS ACROSS THE COUNTRY IN ABOUT 45 STATES.

SOME OF THEM ARE SOME OF THE LARGEST IN THE COUNTRY, MIAMI, DALLAS POLICE DEPARTMENT.

WE'RE DEDICATED TO WORKING WITH THE LAW ENFORCEMENT AGENCIES, OFFICERS IN THEIR COMMUNITIES, AND WE OFFER A VERY COST EFFECTIVE, INNOVATIVE SECONDARY.

MR. TOTH. JUST CANDIDLY, THIS NEEDS TO BE TOWARDS THE BUDGET, NOT OKAY, NOT TOWARDS SELF-SERVICE.

YES, SIR. OKAY.

WE DEFINITELY KNOW WHO YOU ARE.

OKAY GOT YOU. SO GETTING TO THAT POINT WHY WE SENSE THE URGENCY TO GET ON THE AGENDA FOR THIS AFTERNOON.

WE KNOW YOU'RE LOOKING AT ANOTHER COMPANY AND WE JUST WANT TO OFFER UP THAT WE CAN OFFER THE SAME THING AND NOT COST THE CITY $540,000 AS A TAX BURDEN TO THE.

MR. TOTH. WE'VE ALREADY EXECUTED A CONTRACT PAST THAT CONTRACT.

OKAY. ON MONDAY NIGHT.

OKAY. WE JUST WANTED TO OFFER UP, AND I KNOW IT LASTS FOR SIX MONTHS.

AND WE WOULD HOPE THAT YOU CONSIDER ROLL CALL AFTER THAT CONTRACT EXPIRES IN SIX MONTHS.

UNDERSTOOD. THANK YOU. OKAY.

FAIR. THANK YOU.

YES, SIR. THANK YOU.

THE OTHER SPEAKER IS SARAH STOKES.

GOOD EVENING, MAYOR AND CITY COUNCIL.

I TOO AM WITH ROLL CALL AND I WILL SPEAK DIRECTLY TO THE BUDGET, SINCE THAT IS ITEM THREE.

AND THAT IS WHAT THIS IS ABOUT, CORRECT? WE SEE THE NUMBERS.

THEY WERE MADE PUBLIC, AND WHILE WE DON'T HAVE ACCESS TO THE DETAILS OF THE CONTRACT, WE DO HAVE AN UNDERSTANDING OF THE COMPANY, EDS AND I WOULD LIKE TO SHARE CANDIDLY WITH THE COUNCIL THAT WE ARE PREPARED TO OFFER THREE OPTIONS WE BELIEVE MEETING AND POSSIBLY EXCEEDING WHAT EDS HAS OFFERED AT 14, 30 AND 35,000 A MONTH.

ONCE AGAIN, THIS IS A SALE.

THIS IS A SALES PITCH.

AND THIS IS NOT PERTAINING TO OUR BUDGET THAT THAT WE'RE DEALING WITH FOR THE 24-25 YEAR.

OKAY. AS AN OPPORTUNITY TO HAVE PUBLIC COMMENTS AT OUR REGULAR MEETINGS.

OKAY. THE NEXT ONE IS 12TH.

THE 12TH. OKAY.

AS WE UNDERSTOOD, THE BUDGET WAS BEING RATIFIED TONIGHT.

AND SO I'M SORRY.

AM I INCORRECT, SIR? YEAH, WE'RE JUST BEGINNING.

WE'RE JUST BEGINNING TO HEAR THE BUDGET.

SO WE'RE. OKAY. WE WILL NOT BE RATIFYING IT TONIGHT.

OKAY. UNDERSTOOD AGAIN, NUMBERS RELATING TO BUDGET.

WE BELIEVE WE CAN HELP WITH THE FIDUCIARY RESPONSIBILITY THAT THE CITY COUNCIL HAS TO ITS TAXPAYERS.

AND WHEN NEEDED, WE ARE CERTAINLY HERE AGAIN, BEING LOCAL HERE IN LAS COLINAS AND READY TO SERVE WHEN AND IF NEEDED.

THANK YOU, THANK YOU.

[Items 1 - 3]

OKAY. ON ITEM ONE.

OVERVIEW OF 23-24 BUDGET AND COMMUNITY INVESTMENT PROGRAM.

MARK. THANK YOU, MAYOR AND COUNCIL.

WELL, WE'RE IN BUDGET SEASON AT OFFICIALLY IS BEGINNING.

SO, I'M PLEASED TO PRESENT YOU WITH THE RECOMMENDED BUDGET FOR THE FISCAL YEAR 24-25.

I WANT TO START WITH THANKING TEAM PLANO.

OUR EXECUTIVE TEAM HAS HAD TO STEP UP HUGE THIS YEAR IN ORDER TO PRESENT A BALANCED BUDGET.

[00:05:01]

AND I WOULD LIKE TO ALSO COMMEND KAREN RHODES WHITLEY AND HER TEAM IN THE BUDGET DEPARTMENT, WHO HAVE HAD TO WORK EXTRA TIME TO ENSURE THAT THIS WAS IN PLACE.

AND YET WE RECEIVED NUMBERS LATE THIS AFTERNOON FROM CALLING CAD.

SO SOME OF THIS INFORMATION WILL STILL BE BEING UPDATED AS WE SPEAK.

SO, AS YOU'RE AWARE, THE CITY HAS BEEN FACING A SHORTFALL IN THE CURRENT YEAR, WHICH WOULD HAVE COMPOUNDED SIGNIFICANTLY NEXT YEAR IF PROACTIVE STEPS WERE NOT TAKEN.

THAT'S WHY WE'VE ACTIVATED OUR BUDGET CONTINGENCY PLAN.

THIS IS DUE TO A NUMBER OF FACTORS, INCLUDING SLOWED DEVELOPMENT GROWTH.

WE ARE REACHING THAT BUILD OUT PHASE.

WE HAVE LESS THAN 1.5% OF UNDEVELOPED LAND TO STILL DEVELOP.

WE'RE CONTINUING TO SEE INFLATION AND SUPPLY CHAIN ISSUES.

WE HAVE REVENUES NOT KEEPING PACE WITH INFLATION, INCLUDING SOME OF OUR PROPERTY TAXES, COST ESCALATIONS DUE TO COMPENSATION INCREASES AND OVERTIME DUE TO JOB VACANCIES. WE HAVE LOCAL POLICY IMPACTS AND STATE POLICY IMPACTS, INCLUDING TAX FREEZES AND CHAPTER 42 TAX CHALLENGES.

PUBLIC FACILITY CORPORATIONS, ALL OF WHICH ARE TAKING AWAY SOME OF THE REVENUE THAT COULD BE EXPECTED FROM PROPERTY TAX.

AND THEN, AS YOU ALL KNOW, OVER THE LAST SEVERAL YEARS, WE HAD A RELIANCE ON FEDERAL FUNDS AND UTILIZATION OF FUND BALANCES IN ORDER TO MAKE SURE THAT WE WERE PASSING ON SAVINGS TO THE COMMUNITY.

WHILE THERE'S NOT A SINGLE REASON FOR THE FINANCIAL SITUATION, THE MATURITY OF ALL OF THESE HAS CONTRIBUTED TO THE FINANCIAL POSITION THAT WE'RE IN RIGHT NOW.

AND CANDIDLY, WE NEED TO SHIFT OUR MINDSET FROM A FAST GROWTH, HIGH GROWTH COMMUNITY TO ONE THAT HAS MORE OF A FOCUS ON MAINTENANCE AND MORE OF A FOCUS ON INFILL AND REDEVELOPMENT.

THERE WILL STILL BE A LOT OF PROSPERITY IN PLANO AND A LOT OF REVENUE GROWTH STILL TO BE SEEN.

BUT THAT SHIFT IN MINDSET SHOWS A DIFFERENT SHIFT IN ACKNOWLEDGMENT OF RISK THAT WE'RE GOING TO BE TAKING ON AS AN ORGANIZATION.

WE WILL BE INSTITUTING A NUMBER OF CHANGES THAT WILL IMMEDIATELY AFFECT THE CITY'S PRACTICES AND POLICIES TO ENSURE WE REMAIN A CITY WITH A TRIPLE-A BOND RATING AND FINANCIAL PRACTICES THAT ARE BEST IN THE INDUSTRY.

SO WE WILL BE AVOIDING THIS SITUATION FOR YEARS TO COME.

WE NEED TO BE THINKING IN MULTI-YEAR TERMS. IT'S NOT JUST YEAR TO YEAR.

WE NEED TO BE THINKING IN MULTI-YEAR TERMS AND OUR FINANCIAL DECISIONS.

WE NEED TO BE TAKING EXTRA CARE TO ENSURE THAT WE ARE THINKING OF THINGS THAT ARE RECURRING EXPENDITURES AND REVENUES, INCLUDING COMPENSATION.

SO WE'RE GOING TO DISCUSS THESE IN MORE DETAIL WITH COUNCIL AS WE WORK THROUGH THE BUDGET CYCLE.

WITH THAT IN MIND, THIS BUDGET INCLUDES A BALANCED BUDGET.

IT WILL INCLUDE A TAX RATE INCREASE, BUT ONE THAT IS LOWER THAN THE VOTER APPROVED RATE.

SO, IT WILL BE LESS THAN THAT 3.5% THAT'S ALLOWED UNDER THAT FORMULA.

ALL FUNDS HAVE THE REQUIRED AND APPROPRIATE FUND BALANCE.

WE WILL HAVE A GROSS ONE-TIME COMPENSATION PAYMENT TO ALL FULL-TIME EMPLOYEES OF $1,000 IN DECEMBER 2024.

NOW THAT'S A GROSS PAYMENT, SO DEDUCTIONS WILL COME OUT OF THAT.

WE'RE GOING TO CONTINUE WITH OUR HIRING FREEZE THROUGH JANUARY, JANUARY OF 2025, WHICH JANUARY 1ST, 2025, WHICH WILL BE REEVALUATED AT THAT TIME.

WE ARE REDUCING OUR CAPITAL MAINTENANCE FACILITIES AND PARKS EXPENDITURES THIS YEAR.

TO HELP ADDRESS THE FINANCIAL SITUATION WE'RE IN.

WE HAVE GONE THROUGH AND ASKED EVERY DEPARTMENT TO REDUCE OPERATING EXPENDITURES, AND THEY HAVE DONE SO.

WE HAVE HAD GREAT, GREAT PARTICIPATION BY ALL OF OUR DEPARTMENTS, AND WE ARE LOOKING TO RESTORE THE RAINY-DAY FUND THAT WE'VE HAD TO TAP INTO FOR THE WINDSTORMS. WE'RE LOOKING TO DO THAT.

IN MY OPINION, THE CITY OF PLANO CONTINUES TO BE THE BEST VALUE OF ANY CITY IN THE DFW REGION, AND POSSIBLY ACROSS THE STATE FOR WHAT WE PROVIDE FOR THE AMOUNT THAT WE PROVIDE IT WITH. THIS HAS MADE PLANO THE CITY OF EXCELLENCE, AND WHILE MANY CITIES ACHIEVE SEVERAL GOALS, THE CITY OF PLANO HAS BEEN ABLE TO ACHIEVE FIVE GOALS EACH YEAR.

THAT MAKES PLANO THE ENVY OF MANY COMMUNITIES, INCLUDING OUR FINANCIAL POLICIES.

SO AGAIN, THIS BUDGET WILL MAINTAIN THE BALANCED BUDGET AND IT WILL CONTINUE OUR SOUND FINANCIAL POLICIES, INCLUDING MAINTAINING RESERVES.

WE TAKE CARE OF OUR PERSONNEL IN THE FISCAL YEAR 24-25.

RECOMMENDED BUDGET INCLUDES ONLY ONE NEW POSITION THIS YEAR, WHICH IS FOR OUR WATER AND SEWER SYSTEM SECURITY.

BUT IT ALSO INCLUDES THAT $1,000 GROSS PAYMENT TO ALL FULL-TIME EMPLOYEES.

QUALITY INFRASTRUCTURE.

WE HAVE A MATURE CITY, AND WE ARE PRIORITIZING MAINTENANCE AND REPAIR OF CITY ASSETS.

WE HAVE A CIP PROGRAM OF $317 MILLION, IN ADDITION TO OUR OPERATING BUDGET THAT WE ARE SEEKING TO HAVE COUNCIL APPROVAL WITH.

THERE ARE NO NEW PROGRAMS OR SERVICES THIS YEAR, AS YOU MIGHT ANTICIPATE, BUT WE CONTINUE TO SEE THE VALUE OF HOMES IN PLANO INCREASE.

SO, THIS YEAR IT'S $579,621, WHICH IS A RAY, AN UPWARD TICK OF 2.7%.

AND WE CONTINUE TO HAVE THE MAXIMUM HOMESTEAD OF 20% IN THE SENIOR TAX FREEZE.

RIGHT NOW, WE ARE SEEING A DRAMATIC INCREASE IN THE AMOUNT OF SENIOR TAX FREEZE THAT IS BEING TAKEN OFF THAT SAVINGS TO OUR CITIZENS.

OVER 65 THIS YEAR WAS A $3.3 MILLION INCREASE IN OVERALL, IT'S ABOUT $11 MILLION IMPACTING THE REVENUE STREAM.

[00:10:09]

SO THIS BUDGET CONTINUES TO BE A WORK IN PROGRESS.

AND MOST OF THAT IS DUE TO THE DELAY THAT WE HAVE FROM OUR CENTRAL APPRAISAL DISTRICT.

OVER THE NEXT SEVERAL WEEKS, WE'RE GOING TO HAVE MEETINGS REGARDING THE NO NEW REVENUE RATE, THE VOTER APPROVED RATE, AND ALL THE TAX CALCULATIONS THAT ARE REQUIRED BY LAW.

KAREN WILL BE PRESENTING THOSE AT A FUTURE COUNCIL MEETING.

AND WHAT WE'RE PRESENTING TONIGHT MAY CHANGE SLIGHTLY.

SO IF THERE'S ANY ADJUSTMENTS, WE'LL BE CIRCULATING BACK WITH COUNCIL PER USUAL TO MAKE SURE WE'RE COMMUNICATING IN AN OPEN AND TRANSPARENT WAY.

AND IN CONCLUSION, AGAIN, I WANT TO THANK OUR EXECUTIVE TEAM, AMAZING WORK THIS YEAR AND APPRECIATE THEIR COOPERATION IN HELPING US GET TO THIS POINT.

MY DEPUTIES, SHELLEY, SAM, JACK AND LASHAWN, FOR ALL THEIR WORK PUTTING THIS TOGETHER AND WORKING HARD TO MAKE SURE WE'RE THERE, AND ESPECIALLY KAREN AND THE BUDGET TEAM AGAIN, TIRELESSLY WORKING WITH THAT AND WITH THAT KAREN, WOULD YOU PLEASE PRESENT THE 24-25 BUDGET TO THE CITY COUNCIL? GOOD EVENING. KAREN RHODES, BUDGET DIRECTOR.

OKAY. AS MARK MENTIONED, THE BUDGET IS BUILT ON OUR FIVE PRINCIPLES.

HAVING THE AFFORDABILITY OF OUR PROPERTY TAX, TAKING CARE OF OUR SERVICE DEMANDS, MAKING SURE THAT WE HAVE OUR FINANCIAL POLICIES IN ORDER.

WE WANT TO TAKE CARE OF OUR PEOPLE AND THEN KEEP UP OUR INFRASTRUCTURE.

HOW DID WE GET HERE? MARK HAS MENTIONED A COUPLE OF THINGS.

WE DID NOTIFY EVERYBODY IN MARCH THAT WE WERE GOING TO HAVE A DEFICIT.

AT THAT TIME, IT WAS $26 MILLION.

BY THE TIME WE GOT TO JUNE, IT HAD RAISED UP CONSIDERABLY AFTER ALL THE DEPARTMENTS HAD SUBMITTED THEIR ACTUAL DEPARTMENTAL BUDGETS.

ONE THING THAT DID HAPPEN, WHICH WE HAVE NOT SEEN IN THE PAST, IS AFTER WE PRESENTED TO Y'ALL, WE WENT TO THE CENTRAL APPRAISAL DISTRICTS AND THEY NORMALLY GIVE US SOME NICE REPORTS TELLING US WHAT WE CAN EXPECT.

ANYWAY, THIS YEAR ON COLLIN COUNTY, WE HAD SAID WE THOUGHT WE WOULD HAVE A 5% INCREASE ON OUR APPRAISED PROPERTY VALUES. WELL, THEIR PRELIMINARY ROLL CAME IN AT FLAT, MEANING WE WERE GOING TO COLLECT THE SAME THING WE COLLECTED LAST YEAR.

SO THAT'S WHY THE DEFICIT DID JUMP.

SINCE THEN, THAT HAS COME UP AND I WILL GO OVER SOME OF THOSE FIGURES HERE IN A MINUTE.

AS HE ALSO MENTIONED, SALES TAX HAS STABILIZED.

WE ARE IN A VERY LUCKY POSITION ON OUR SALES TAX.

I WAS WITH SEVERAL CITIES YESTERDAY AND THEY HAVE MULTI-MILLION DOLLAR DECLINES IN THEIR SALES TAX.

OURS HAS STAYED FLAT.

SO WE'RE COLLECTING ABOUT THE SAME THING WE COLLECTED LAST YEAR.

AND THAT'S VERY, VERY GOOD FOR US.

MARK ALSO MENTIONED THE OVER 65 POPULATION THAT IS GROWING.

THAT'S A $3.3 MILLION MORE THAT WE HAVE GOING TOWARDS THEIR SAVINGS.

ALSO, TIFF, THAT'S GOING $1.1 MILLION MORE IS GOING OVER THERE.

AND THEN THE OTHER EXEMPTIONS THAT WE HAVE, WE HAVE AN ADDITIONAL $2.3 MILLION THAT'S BEEN TAKEN OFF.

THE REVENUE THAT GO CAN GO TOWARDS THE BUDGET.

SINCE 2022, OUR BUILDING AND DEVELOPMENT RELATED REVENUES HAVE DECLINED.

WE WERE COLLECTING ABOUT 10 MILLION.

NOW WE'RE DOWN TO 5 MILLION.

AND OF COURSE, THAT'S BECAUSE THE CITY OF PLANO IS STARTING TO BECOME BUILT OUT AND WE DO NOT HAVE THAT MUCH LAND LEFT.

WE ALSO HAVE BEEN HIT WITH SOME OTHER REVENUE STREAMS THAT HAVE DECLINED.

EMERGENCY 911, YOU WOULDN'T THINK THAT DECLINED, BUT WE ACTUALLY WERE RECEIVING PAYMENTS ON THAT FROM LIKE THE PHONE AND CABLE ANYWAY, PEOPLE ARE CUTTING THE CORDS.

SO, WE HAVE LOST A TREMENDOUS AMOUNT OF MONEY ON THAT ONE SAME THING FOR FRANCHISE FEES.

WE ARE LOSING GROUND THERE BECAUSE PEOPLE ARE CUTTING THE CORDS.

WE STILL ARE DEALING WITH INFLATIONARY PRESSURES.

I KNOW I THINK INFLATION IS DOWN TO 3.1% RIGHT NOW.

OURS IS STILL MORE THAN THAT 3.1%.

IN ADDITION, WE ALSO WERE HIT THIS YEAR AN INCREASE IN OUR TMRS CONTRIBUTION.

LAST YEAR IT WAS 17.64%.

THIS YEAR WE JUST GOT NOTIFIED.

IN JUNE IT'S GOING UP TO 18.21.

SO THAT WAS AN ADDITIONAL $1.5 MILLION.

OVER TIME WE HAVE HAD INCREASES IN OVERTIME.

IF YOU REMEMBER LAST BUDGET WEEK'S WORK SESSION, WE MADE THE DECISION, HEY, WE'RE NOT GOING TO HIRE ON OCTOBER 1ST.

[00:15:07]

WE'RE GOING TO WAIT UNTIL APRIL TO HIRE.

WELL, REALLY WHAT THAT DID WAS IT PUSHED OVERTIME ON THE EMPLOYEES THAT WE ALREADY HAD.

ALSO, WE HAVE OVERTIME INCREASES THIS YEAR BECAUSE OF THE STORM WE JUST HAD.

AND WE STILL DON'T HAVE ALL THOSE DOLLARS ACCOUNTED FOR.

BUT YOU WILL SEE INCREASES IN OVER TIME.

IN ADDITION, THE LAST THREE YEARS WE HAVE PUT 15% MORE A YEAR INTO OUR HEALTH INSURANCE FUND.

DURING COVID, NOBODY WENT TO THE DOCTOR.

OKAY? WE DIDN'T HAVE ANY PROBLEMS BACK THEN, BUT AS SOON AS COVID GOT OVER WITH, EVERYBODY WAS GOING.

INFLATIONARY PRESSURES HIT, PHARMACEUTICALS WENT OFF MEDICAL COSTS WENT UP.

SO WE HAVE DONE 15, 15, 15 THIS YEAR.

WE HAVE DECIDED, HEY, IT IS PRETTY MUCH STABILIZED OUT.

WE'RE NOT GOING TO DO THE 15%.

THAT'S $4 MILLION RIGHT THERE.

ANYWAY, WE HAVE A MEETING WITH OUR, THE PEOPLE THAT DO OUR HEALTH INSURANCE, AND WE'RE GOING TO START LOOKING AT SOME PLAN DESIGN CHANGES TO MOVE FORWARD WITH OVER THE NEXT COUPLE OF YEARS.

AND THEN AT THE END OF THE DAY, WE DID HAVE SOME MOVEMENT OF THE SALARY RANGES DUE TO THE GLOBAL COMPENSATION PLAN THAT WE KIND OF ARE STILL WORKING ON.

AND IN FACT, THE THE NEW PLAN WILL NOT COME OUT UNTIL SPRING OF 2025.

AND I WILL GET TO THAT HERE IN A MINUTE.

WE DID HAVE SOME IMMEDIATE STEPS THAT WERE TAKEN.

WE WENT INTO OUR BUDGET CONTINGENCY PLAN.

PHASE ONE IMPLEMENTED THE HIRING FREEZE UNTIL JANUARY 1ST.

NOW THAT EXCLUDES SWORN OFFICERS.

SCHOOL CROSSING GUARDS, DETENTION OFFICERS.

WE HAVE SET UP THE.

WE DO HAVE A NUMBER OF POSITIONS THAT ARE ON HOLD.

IF FOR SOME REASON GOING DOWN THE LINE AND THEY REALLY NEED TO HIRE THAT POSITION, THE DCMS ARE SETTING UP A GROUP AND ON A WEEKLY BASIS WE WILL START LOOKING.

IF THE PERSONNEL IS REALLY, REALLY NEEDED, WE WILL START LOOKING AT THAT.

ALL DEPARTMENTS WERE SUBMITTED TO SUBMIT A 5%.

IT INCLUDED THEIR OPERATION COST PLUS SALARY COST, AND EVERY SINGLE DEPARTMENT TURNED ONE IN THE DCMS AND MARK WENT THROUGH THEM ALL. THEY WERE NOT ALL TAKEN, BUT QUITE A FEW OF THEM WERE TAKEN AND AT THE END OF THE DAY WE GARNERED $6.6 MILLION OF SAVINGS. OUT OF THAT, WE DID GO BACK.

WE REVIEWED ALL OUR INTERNAL SERVICE FUNDS, INCLUDING THE ERF FUND, TECHNOLOGY SOLUTION FUNDING.

WE WERE ABLE TO GARNER SOME SAVINGS IN THAT, LIKE OUR TECHNOLOGY SOLUTIONS REPLACEMENT PLAN.

LOOKED AT THE ROGERS SAID, HEY, WE'RE THROWING.

WE ARE TRANSFERRING MONEY IN FOR CAMERA REPLACEMENTS, BUT WE'RE NOT HAVING TO REPLACE THEM AS FAST AS WHAT WE ORIGINALLY THOUGHT.

SO, WE WERE ABLE TO GET $1 MILLION OUT OF THAT FUND ON THE ERF FUND.

MIKE ELLISON THEN WENT BACK AND SAID, HEY, BEFORE WE WERE CALCULATING DEPRECIATION LIKE THESE VEHICLES WERE COMING IN OCTOBER 1ST.

ANYWAY, AS WE ALL KNOW, A LOT OF THE VEHICLES NOW YOU'RE ORDERING A VEHICLE TODAY.

IT MIGHT GET HERE TWO YEARS FROM NOW BECAUSE OF THE SUPPLY CHAIN ISSUES.

SO, WE WENT AND FIRMED UP ALL THAT.

IN ADDITION, ORIGINALLY WE DID HAVE A 2.5% SALARY INCREASE INCLUDED IN THE BUDGET.

WE HAVE SINCE ELIMINATED THAT.

AND IN LIEU OF THAT, WE HAVE A $1,000.

NOW, THIS IS GROSS PAY.

IT'S A ONE-TIME PAYMENT THAT WILL HAPPEN IN DECEMBER IF THIS GOES FORWARD.

SO, SAY LIKE IF IT WAS FOR ME AND I'M IN, I DON'T KNOW, 20% TAX BRACKET THAT'S GOING TO COME OFF THAT THE LABOR MAINTENANCE FIELD WORKERS, THE LOWER INCOME, THEY'RE GOING TO GET A LARGER CHUNK OF THAT $1,000.

SO THAT IS A GOOD THING.

AS I ALREADY MENTIONED, WE SAVED $4 MILLION ON NOT DOING THE HEALTH INSURANCE INCREASE.

AND OF COURSE, THE CAPITAL MAINTENANCE FUND.

WE DID TAKE OUT TEN A YEAR, $10 MILLION A YEAR AS FAR AS THE TRANSFER FROM THE GENERAL FUND, THE CAPITAL MAINTENANCE FUND, WE HAVE NOT HAD A VISION IN THAT POLICY SINCE 2016.

WE'RE GOING TO COMPLETELY BE REDOING THAT.

BUT AT THE END OF THE DAY, WE WERE TRANSFERRING MONEY INTO THAT FUND, BUT THE DEPARTMENTS WERE NOT ABLE TO SPEND EVERYTHING.

[00:20:03]

THEY WERE BUDGETING BECAUSE OF SUPPLY CHAIN ISSUES, NOT BEING ABLE TO HIRE EMPLOYEES, ALL THAT.

SO WE COMPLETELY REDID THAT.

JUST A COUPLE OF NEXT STEPS.

WE ARE BEGINNING THE 2526 BUDGET IMMEDIATELY.

WE ARE GOING TO GO BACK AND REVIEW EVERY SINGLE FINANCIAL POLICY WE HAVE, INCLUDING DAYS OF WORKING CAPITAL NEEDED FOR EACH FUND.

I ALREADY MENTIONED WE'RE REVISING OUR CAPITAL MAINTENANCE FUNDING POLICY, AND WE'RE GOING TO GO AND LOOK AT ALL OUR INTERNAL SERVICE FUND POLICIES.

WE ALSO WE'VE KIND OF ALREADY STARTED THIS OUR FEES FOR SERVICES.

WE'RE GOING TO GO START LOOKING AT THOSE.

WE'VE ALREADY BEGUN THAT WITHIN THE STRATEGIC ROADMAP.

ONE THING WE DO NEED TO BE COGNIZANT OF IS WE NEED TO START ADDING IN SOME INFLATIONARY INCREASES ON THOSE FEES.

WE ARE ALSO GOING TO SET UP COST RECOVERY GOALS.

MANY OF THE DEPARTMENTS ALREADY HAVE THEM IN PLACE.

WE'RE GOING TO CONSOLIDATE THEM.

WE'RE GOING TO CONTINUE TO WORK ON THE STRATEGIC ROADMAP PROJECT.

AND THAT ALSO INCLUDES REVIEWING THE BUDGET AND CIP PROCESS.

AND THEN OF COURSE, THE HIRING FREEZE WILL REMAIN IN EFFECT TILL JANUARY 1ST OF 2025.

HOWEVER, THEY DO HAVE A PROCESS IF FOR SOME REASON THEY'VE GOT TO HIRE BEFORE THEN, THE DCMS HAVE SET UP A GROUP TO LOOK AT ALL THOSE.

NOW GETTING INTO THE BUDGET AS IT IS TODAY.

YOUR COMBINED BUDGET, MEANING ALL THE FUNDS TOTALS $846 MILLION.

TAXES IS NUMBER ONE AT 44%.

THIS IS PROPERTY TAXES AND SALES TAX.

AND THEN NUMBER TWO IS CHARGES FOR SERVICES 34.5%.

AND OF COURSE, THAT'S GOING TO BE YOUR WATER AND SEWER, YOUR SOLID WASTE.

ANYTHING THAT WE COLLECT FOR SERVICES.

THE COMBINED BUDGET EXPENDITURES TOTALED $756 MILLION.

WATER AND SEWER DUE TO THE CONTRACT COSTS THAT WE PAY.

NORTH TEXAS MUNICIPAL WATER DISTRICT, THAT'S STILL NUMBER ONE, 28.6%.

PUBLIC SAFETY IS NUMBER TWO AT 26%.

AND THEN WE HAVE GENERAL GOVERNMENT RIGHT AFTER THAT AT HOLD ON, I'M BARELY ABLE TO READ THAT.

GENERAL GOVERNMENT IS AT 16%.

AS FAR AS THE GENERAL FUND GOES, YOU WILL SEE HERE, PUBLIC SAFETY ON THE GENERAL FUND SIDE MAKES UP HALF OF THE AMOUNT THAT WE HAVE FOR OUR OPERATING BUDGET.

SO THE OPERATING BUDGET IS $393 MILLION.

PUBLIC SAFETY AND HEALTH ACCOUNT FOR ABOUT 200 MILLION OF THAT.

RIGHT AFTER THAT IS OUR NON-DEPARTMENTAL DEPARTMENT AND TRANSFERS.

THAT'S WHERE THE CAPITAL MAINTENANCE FUND GOES.

WE PROVIDE THE TRANSFER THERE.

WE PROVIDE A TRANSFER INTO RISK MANAGEMENT TECHNOLOGY SOLUTIONS.

WE HAVE ALL KINDS OF TRANSFERS OVER THERE.

LET'S TALK ABOUT PROPERTY TAXES AND ASSESSED PROPERTY VALUES.

WE'VE WAITED ALL WEEK LONG FOR THE CERTIFIED VALUES TO COME IN, AND THEY CAME IN AT THREE TODAY, SO WE DID NOT HAVE TIME TO REDO ALL OF THIS.

BUT AT THE END OF THE DAY, WHAT WE HAVE WITHIN THE BUDGET 41.7 $0.06, WHICH IS THE SAME TAX RATE AS THIS LAST YEAR AND THE YEAR BEFORE.

THE O&M SIDE IS $30.2.06, AND THE DEBT RATE IS 11.5.

WE DID RECEIVE THE CERTIFIED VALUES.

TOMORROW WE WILL START WORKING ON WHAT ARE NO NEW REVENUE RATE, AND YOUR VOTER APPROVAL RATE WILL BE ALL.

THE FINAL INFORMATION AT THE AUGUST 12TH WORK SESSION WILL BE DISCUSSED WITH CITY COUNCIL.

ALSO, THAT'S THE NIGHT WHERE CITY COUNCIL NEEDS TO SAY, HEY, THIS IS THE RATE, THE HIGHEST RATE THAT WE THINK WE ARE WILLING TO GO, AND IT HAS TO BE PUBLISHED IN THE PAPER THE NEXT DAY.

YOU CAN GO DOWN FROM THAT RATE.

THIS IS JUST WHERE YOU THINK THE HIGHEST RATE WILL BE.

AND THEN OF COURSE YOU WILL BE ADOPTING THE TAX RATE ON SEPTEMBER 9TH.

THIS IS A LOOK.

NOW THIS IS OLD.

THIS IS FROM JULY 8TH.

THIS IS THE AVERAGE TAXABLE HOME VALUE.

THAT MEANS THE 20% HOMESTEAD EXEMPTION HAS BEEN TAKEN OUT.

SO FOR 23-24 IT WAS $373,408.

AS OF JULY 8TH, THE PROPOSED AVERAGE TAX HOME VALUE WAS 417 594.

[00:25:01]

IN LOOKING AT THE AMOUNT THAT I GOT IN TODAY, IT'S VERY CLOSE.

IT HAS CHANGED A LITTLE BIT.

SO IF EVERYTHING WAS TO STAY EXACTLY THE SAME AS ON THIS CHART, A AVERAGE HOME VALUE WOULD BE GOING UP $184 FOR THE YEAR.

SO THAT'S PROPERTY VALUES.

AS YOU CAN SEE, THEY DID NOT COME IN FLAT.

WE HAD 57.4 BILLION ON THE PROPERTY TAX ROLL LAST YEAR.

THE INFORMATION THAT WE HAVE THAT 62 IS SOMETHING THAT WE GATHERED A COUPLE OF WEEKS AGO.

AND LOOKING AT THE TAX ROLL, WE'RE NOT GOING TO BE TOO FAR OFF FROM THAT 62.

WE DID HAVE EXISTING PROPERTY GO UP $3.6 BILLION AND NEW PROPERTY GROWTH AT 900.

AND I CAN TELL YOU TONIGHT THAT 900 IS NOT GOING TO STICK.

IT'S GOING TO BE MORE IN THE EIGHT HUNDREDS.

THIS IS JUST A LOOK AT OUR REVENUE SAVINGS AND TAX EXEMPTIONS.

YOU'LL SEE IN THE FIRST COLUMN.

THAT'S YOUR AVERAGE MARKET VALUE.

IT WENT TO 579,621 TOTAL EXEMPTIONS.

NOW ON THE APPRAISED PROPERTY VALUES TOTALED 15.34 BILLION.

WITH THAT EQUATES TO IF YOU DO THE 41.76, THEN YOU HAVE 64 MILLION THAT IS COMING OFF IN EXEMPTIONS, AND THEN THE REVENUE THAT IS COMING OFF OF REVENUE SAVINGS TO THE 65 AND OVER WENT FROM 7.7 TO 11 MILLION.

THIS IS JUST A LOOK COMPARING ALL THE DIFFERENT ENTITIES A TAXPAYER DOES PAY INTO THE CITY OF PLANO, PISD, COLLIN COUNTY, AND OF COURSE COLLIN COUNTY COMMUNITY COLLEGE DISTRICT.

AT THE END OF THE DAY, THIS IS OUR TAX RATE AND THEN THEIR TAX RATE FROM LAST YEAR.

WE DON'T HAVE ALL THEIR NEW TAX RATES YET, SO IT WOULD BE ON AN AVERAGE HOME MARKET VALUE OF 579,000.

THEY WOULD OWE $8,305.

SALES TAX.

WE DID KEEP IN LINE WITH OUR SALES TAX CAP POLICY.

AS YOU KNOW, WE'VE BEEN ON THIS FOR SINCE 2008.

IT'S BEEN ONE OF THE BEST POLICIES THAT WE HAVE HAD AT THE CITY, RIGHT BEHIND THE CAPITAL MAINTENANCE FUNDING POLICY.

BUT AT THE END OF THE DAY, WE TAKE A THREE-YEAR AVERAGE NET OUT ANY AUDIT ADJUSTMENTS.

THE LAST COUPLE OF YEARS WE DID ADD INFLATION TO IT.

WE DID NOT DO THAT THIS YEAR BECAUSE INFLATION IS DOWN TO 3%.

SO AT THE END OF THE DAY OH, THIS IS JUST A COUPLE OF FUNDING INITIATIVES THAT WE'VE DONE SINCE 2008.

WE PROVIDED NEARLY $25 MILLION TO CAPITAL MAINTENANCE FUND, PROVIDED ADDITIONAL MONEY INTO THE RAINY-DAY FUND, ECONOMIC DEVELOPMENT INCENTIVE FUND. WE ALSO PURCHASED LAND FOR THE FIRE TRAINING CENTER AND POLICE SUBSTATION WITH IT.

THIS IS JUST A LOOK AT YOUR SALES TAX RECEIPTS.

WE COLLECTED 114 MILLION LAST YEAR.

LOOKS LIKE WE'RE ON PAR.

WE STILL HAVE THREE MONTHS TO GO.

117. THAT 113 IS THE THREE YEARS NET OUT ANY AUDIT ADJUSTMENTS.

I FEEL VERY LUCKY THAT THIS IS HELD AFTER TALKING TO SEVERAL CITIES THAT ARE LOSING QUITE A BIT FROM SALES TAX.

BUILDING DEVELOPMENT RELATED REVENUES.

THIS IS A REVENUE STREAM THAT IS GOING DOWN.

WE WERE COLLECTING 10 MILLION BACK IN 2022.

IT'S DOWN TO 5 MILLION FOR 24-25.

JUST SOME BUDGET HIGHLIGHTS.

WE HAVE ABSOLUTELY NO NEW PROGRAMS OR SERVICES IN HERE.

THE GENERAL FUND IS BUDGETED AT 30 DAYS OF WORKING CAPITAL.

WE DID ADD SEVERAL DIFFERENT ITEMS THAT WERE MANDATED THAT WE NEEDED TO ADD IN.

OF COURSE, WE'VE GOT TO ADD IN THE 2025 ELECTIONS, WE'RE GOING TO HAVE THE ELECTIONS, PLUS WE HAVE A BOND REFERENDUM.

ALSO, WE ADDED IN A ZONING ORDINANCE REVIEW AND UPDATE WITHIN THERE.

ALSO, WE HAD TIED OURSELVES OR NOT TIED OURSELVES, BUT SIGNED A CONTRACT FOR SOME PICKLEBALL COURTS AND WE DID INCLUDE THAT IN THERE.

THERE'S ALSO SOME LITTLE BITTY INFLATIONARY ITEMS TO MAINTAIN EXISTING SERVICES, AND EITHER MANDATES BY THE FEDERAL OR STATE

[00:30:07]

IS INCLUDED IN HERE.

THAT'S $1.1 MILLION.

WE HAD ALREADY MENTIONED ABOUT THE ONE-TIME PAYMENT FOR THE FULL-TIME EMPLOYEES.

THAT'S 2.5.

CIP COMING ONLINE IS $425,000.

WE DID HAVE WHEN WE GATHERED UP ALL THE DEPARTMENTAL OPERATION EXPENDITURES AND MADE ALL THE TRANSACTIONS.

WE DID HAVE $2.8 MILLION LEFT.

WE PUT THAT OVER IN THE RAINY DAY FUND.

NOW, AS I MENTIONED BEFORE, WE ARE GOING TO BE DOING THE NO NEW REVENUE RATE, VOTER APPROVAL RATE.

ONE OF THE THINGS I DID GET OUT OF THE ROLE I SAW TODAY IS WE HAVE $7 BILLION IN CHAPTER 42 THAT ARE GOING TO BE COMING OFF.

THAT ALL GOES IN TO WHEN YOU CALCULATE THE VOTER APPROVAL RATE.

WE WILL HAVE MORE INFORMATION ABOUT THAT COMING.

AND OF COURSE, WE HAVE INCREASES TO NORTH TEXAS MUNICIPAL WATER DISTRICT OF NEARLY $8 MILLION.

MARK, I KNOW MENTIONED THIS.

WE HAVE ONLY ONE POSITION THAT WE'RE ADDING THAT IS A WATER PUMP STATION OPERATOR.

WE HAD SEVERAL DEPARTMENTS THAT HAD VACANCIES.

THEY'VE HAD VACANCIES FOR A WHILE, AND THEY WENT AHEAD AND TURNED THEM IN.

WE HAVE FOUR MUNICIPAL COURT CLERKS THAT WERE TURNED IN.

FIVE PSC 911 OPERATORS, A PROPERTY STANDARDS INSPECTOR, A BUILDING INSPECTOR AND A TRAFFIC ENGINEER. NOW ON THESE YOU'RE PROBABLY GOING WELL, WHY WOULD WE TURN IN THE PSC OPERATORS? WE'RE NOT ABLE TO KEEP THEM FILLED.

AND THE ONES THAT HAD BEEN THERE THE LONGEST, MEANING THE POSITIONS ON THE BOOKS.

SUSAN WENT AHEAD AND SAID, LET'S GO AHEAD AND ELIMINATE THESE.

IF WE EVER GET TO FULLY STAFFED, WE'LL COME BACK AND ASK FOR THE MONEY TO ASK FOR MORE.

AND AT THAT TIME WE WILL DEAL WITH THAT.

BUT THAT GARNERED $1 MILLION IN SAVINGS RIGHT THERE.

CIP OPERATING EXPENDITURES.

THE 425.

THAT IS DUE TO THE PARTIAL YEAR FUNDING FOR UTILITIES, MAINTENANCE AND CUSTODIAL EXPENSES FOR FIRE STATION FIVE.

THE NEW 701 EAST 15TH STREET BUILDING AND THE FUELING STATION.

ON THE PARKS AND REC SIDE, WE DID HAVE TO REDUCE OUR REVENUE DUE TO THE TOM UHLENBECK REC CENTER IS GOING TO BE CLOSING IN THE SPRING OF 2025, SO WE DID HAVE A REDUCTION OF REVENUE OVER THERE.

LET'S TALK ABOUT THE WATER AND SEWER FUND AND SOLID WASTE.

YOU WILL HAVE MORE DETAILS ON WATER AND SEWER AND SOLID WASTE, THURSDAY, AUGUST 15TH.

AT THE END OF THE DAY, WE HAVE HIRED A NEW RATE CONSULTANT.

WE'RE CURRENTLY WORKING ON THE RATE PLAN.

WE'VE ALREADY GOTTEN OUR INFORMATION IN FROM NORTH TEXAS MUNICIPAL WATER DISTRICT.

WE DID HAVE SOME GOOD NEWS.

ORIGINALLY, THEY WERE GOING TO GO UP TO FROM 369 TO 390.

HAD A MEETING WITH THEM THE OTHER DAY.

THEY'RE ONLY GOING UP TO 3.85.

ALSO, THEY'RE LOWERING OUR TAKE OR PAY FROM 25.4 BILLION DOWN TO 24.3 BILLION.

ALL THIS HAS BEEN GIVEN TO OUR RATE MODEL CONSULTANT RIGHT NOW.

THE NUMBERS THAT YOU LOOK AT IN YOUR BOOK, WE HAVE AN 8% BUILT IN FOR WATER AND A 3% FOR SEWER.

THAT MOST LIKELY WON'T HOLD WITH THESE NEW NUMBERS COMING IN.

ALSO, AT THE END OF THE DAY, ALL RATE INCREASES WILL START OCTOBER 1ST.

WE DO HAVE A TRANSFER OF $22 MILLION TO THE WATER AND SEWER CIP.

WE ALSO ARE GOING TO BE TALKING TO YOU ALL ABOUT SELLING $80 MILLION IN REVENUE BONDS FOR SEVERAL VERY, VERY LARGE PROJECTS.

THEY HAVE BEEN ON THE BOOKS FOR QUITE A WHILE, EVEN ON THE BOOKS BEFORE PRE-COVID, THEY WERE NOT SUPPOSED TO BE THAT EXPENSIVE.

AND THEN WE KNOW HOW IT ALL WENT.

THE LAST COUPLE OF YEARS, THESE PROJECTS HAVE GONE FOR LIKE $5 MILLION, ALL THE WAY UP TO $20 MILLION.

SO WE JUST FEEL IT'S TIME THAT WE SELL FOR THESE THREE PROJECTS.

NOW THAT 80 MILLION, IT WILL NOT ALL BE ISSUED IN ONE YEAR.

WE WILL DO IT OVER A COUPLE OF YEARS.

AT THE END OF THE DAY, RIGHT NOW, THE FUND DOES HAVE 82 DAYS OF WORKING CAPITAL.

OUR FINANCIAL POLICY SAYS WE NEED 45.

WE LIKE TO KEEP 60 BECAUSE OF THE WEATHER.

SO I DO THINK WE'RE GOING TO HAVE SOME CHANGES HERE.

[00:35:04]

THE SOLID WASTE FUND WE'VE BEEN THE LAST COUPLE OF YEARS, THE SOLID WASTE FUND HAS BEEN IN A MASSIVE DEFICIT POSITION.

WE DID HIRE NEW GEN SOLUTIONS LAST YEAR.

THEY DID A WHOLE RATE MODEL, BASICALLY TOLD US, Y'ALL NEED TO BE GOING UP A DOLLAR A YEAR TO TAKE CARE OF SOME OF THIS.

SO THAT'S WHAT WE DID LAST YEAR.

THIS YEAR WE GOT ANOTHER DOLLAR AND WE'LL BE DOING ANOTHER DOLLAR NEXT YEAR.

MORE INFORMATION WILL BE COMING.

DON'T KNOW IF YOU REMEMBER OR NOT, BUT WE HAD TO TAKE A WATER AND SEWER LOAN AND GIVE IT OVER TO THE SOLID WASTE TO COVER THEIR DEFICIT POSITION.

THEY NOW ARE IN A POSITION WHERE THEY CAN START PAYING BACK THE LOAN.

RIGHT NOW THEY DO HAVE A FUND OF 50 DAYS OF WORKING CAPITAL.

AS FAR AS OUR CIP $317 MILLION.

OF COURSE, THE MAJORITY OF THIS IS STREETS AT 119.

PARKS AND REC IS 59.

WATER AND SEWER PROJECTS ARE 53.

WE ARE GOING OUT FOR AN $85 MILLION BOND SALE.

THIS WILL FINISH UP PRETTY MUCH ALL THE BOND REFERENDUM MONEY FROM 2021.

Y'ALL ALL KNOW WE ARE GOING TO DO ANOTHER BOND REFERENDUM MAY 3RD OF 2025.

STREETS WILL BE COMPLETELY OUT OF MONEY ONCE THIS IS ISSUED.

I THINK PARKS AND REC WILL HAVE A LITTLE BIT, BUT BASICALLY, WE WILL BE OUT OF MONEY.

CAPITAL MAINTENANCE HAVE TALKED ABOUT THAT.

WE DID LOWER THE TRANSFER THAT WE'VE GOT GOING IN.

WE DO HAVE A FUNDING POLICY OVER THERE.

OUR GOAL IS TO DO 75%.

WE HAD NOT BEEN IN 75% UNTIL THE SALES TAX CAP POLICY CAME ON, AND WE WERE ABLE TO TRANSFER MONEY OVER THERE.

NOW WE'RE TAKING OUT OR LOWERING THAT TRANSFER DOWN FOR NEXT YEAR.

IT DOES BRING DOWN THE AMOUNT THAT WE'RE TRANSFERRING.

THAT'S A PERCENTAGE OF THE ANNUAL DEPRECIATION.

WE'RE GOING TO DISCUSS THIS MORE WITH Y'ALL ON AUGUST 12TH WHEN WE TALK ABOUT THE CIP.

CIP. MY LAST SLIDE MENTIONS THE DATES.

OF COURSE. TODAY WE GOT.

WE'RE PROPOSING THE RECOMMENDED BUDGET.

CIP ALSO WILL BE UPLOADED TO THE WEBSITE AND GIVEN TO ALL THE LIBRARIES.

AUGUST 12TH IS A VERY BIG NIGHT.

YOU'RE GOING TO HAVE A PRESENTATION ON THE PROPOSED SIP.

WE WILL HAVE A PUBLIC HEARING ON THE OPERATING BUDGET AND THE CIP THAT NIGHT.

YOU WILL APPROVE ALL THE CERTIFIED TAX ROLLS, AND WE WILL NEED TO Y'ALL WILL NEED TO DETERMINE SOME KIND OF PROPOSED TAX RATE THAT WE CAN PUBLISH IN THE NEWSPAPER.

AUGUST 15TH.

IT'S A THURSDAY EVENING STARTING AT 5:00.

WE WILL HAVE A COUNCIL WORK SESSION ON THE BUDGET ALSO DURING THAT EVENT WE WILL HAVE ALL THE GRANT FUNDING, MEANING THE CULTURAL, ARTS, SOCIAL SERVICES, HERITAGE PRESERVATION.

WE WILL HEAR FROM ALL OF THEM.

AUGUST 22ND.

WE DO HAVE A TOWN HALL MEETING SCHEDULED FOR THE BUDGET AND CIP.

AUGUST 26TH.

THIS IS UP TO YOU ALL.

WE REALLY ARE ONLY REQUIRED TO HAVE ONE PUBLIC HEARING THE LAST COUPLE OF YEARS Y'ALL HAVE WANTED TO HAVE TWO, SO AUGUST 26TH WOULD BE ONE OF THE ONES.

AND THEN SEPTEMBER 9TH THE COUNCIL ADOPTS THE BUDGET, THE CIP SETS THE TAX RATE, AND THEN WE SHOULD HAVE A PUBLIC HEARING ON THAT NIGHT BEFORE YOU ACTUALLY ADOPT THE BUDGET.

AND THEN OCTOBER 1ST WE BEGIN ALL THIS AGAIN.

AS I MENTIONED BEFORE, ALL THIS WILL BE AVAILABLE ON OUR WEB PAGE.

WE HAVE THAT OPEN BUDGET PORTAL.

ALL THIS WILL BE ON THERE AND ALL THIS WILL BE SENT TO THE LIBRARIES.

WHAT QUESTIONS DO YOU HAVE? YES. KAYCI.

SO, ON PAGE 28 OF THE BUDGET WHERE IT'S TALKING ABOUT SALARY AND BENEFITS.

IT MENTIONS THE COMPENSATION PHILOSOPHY AND THE $2 MILLION SET ASIDE FOR THAT.

YES. THE I KNOW EXACTLY WHAT YOU'RE TALKING ABOUT.

WHAT WE HAD DONE, WE HAD THE GLOBAL COMPENSATION PLAN.

WE THOUGHT WE WERE GOING TO START IMPLEMENTING IT THIS YEAR SOMETIME AT THE END OF THE DAY, IT IS NOT FINISHED.

SO, WE TOOK IT OUT OF THE RE-ESTIMATE.

THERE WAS $2 MILLION.

WE HAD 2 MILLION FOR NEXT YEAR, SO WE JUST ELIMINATED THE 2 MILLION FOR THIS YEAR.

[00:40:03]

WE STILL HAVE MONEY IN THERE TO IMPLEMENT THE PLAN.

THE PLAN IS NOT SUPPOSED TO BE READY TILL FEBRUARY 2025.

I GUESS MY QUESTION IS, I KNOW WE'RE NOT GIVING AN ACROSS THE BOARD, YOU KNOW, SALARY INCREASE.

WE'RE GIVING THAT $1,000 TO EVERYBODY.

BUT IF THERE'S PEOPLE WHO ARE NOT AT THE MEDIAN PLUS FIVE, ARE WE STILL GOING TO THIS YEAR, GET PEOPLE UP TO THAT OR THAT'S NOT HAPPENING. WELL, AT THE END OF THE DAY, THE WE DID ALL THAT YOU CAN ADD TO THIS, BUT WE DID ALL THAT OCTOBER 1ST.

SO, I REMEMBER IT'S LASHAWN IN HERE.

NO. ANYWAY, I THINK WE WILL BE BRINGING BACK HR, BUT A LOT OF WHAT YOU'RE TALKING ABOUT OCCURRED IN OCTOBER OF THIS YEAR OR 23 THAT WE'RE CONTINUING TO DO MARKET ANALYSIS.

ONE OF THE THINGS WE'RE WAITING FOR IS THE OCTOBER 1ST AND JANUARY 1ST CHANGES THAT WE SEE FROM THE OTHER CITIES, AND THAT WILL PREPARE US TO BE ABLE TO HAVE THAT ANALYSIS TO MAKE ADJUSTMENTS IF WE NEED FURTHER ADJUSTMENTS.

OKAY. BUT WE HAVE MONEY SET ASIDE IF THERE ARE PEOPLE BELOW THAT WE NEED.

AND THAT'S AT $2 MILLION.

YEAH, THAT'S THE $2 MILLION.

SHELBY. THANK YOU.

I'VE GOT A FEW.

FIRST, I WANTED TO, WELL, SINCE COUNCILWOMAN PRINCE MENTIONED THE COMPENSATION PHILOSOPHY.

I WANT TO MAKE SURE I KNOW WE'VE HANDLED PUBLIC SAFETY SEPARATELY FROM NON-PUBLIC SAFETY.

I WANT TO MAKE SURE THAT THE PUBLIC SAFETY ARE BEING ADDRESSED IN A SIMILAR MANNER THAT WE'RE APPLYING WHENEVER WE GET TO THE CONCLUSION OF THE STUDY, THAT WE'RE APPLYING IT ACROSS THE PUBLIC SAFETY BANDS, THE WAY THAT WE ARE TO NONPUBLIC SAFETY STAFF.

CORRECT. WE APPLY THE SAME PHILOSOPHY ACROSS THE ORGANIZATION.

AND I WILL TELL YOU THIS, THE THE STAT PLANS, YOU KNOW, WE HAVE CIVIL SERVICE STEP PLANS.

ALL THOSE ARE STILL INCLUDED IN THE BUDGET.

OKAY. AND WE HAD TALKED ABOUT WE'VE GOT THE STREAM BANK STABILIZATION STUDY ONGOING.

WE HAD TALKED ABOUT IDENTIFYING THE AREAS MOST IN NEED AND THEN ROLLING ADDRESSING THOSE, AT LEAST INTO THIS YEAR'S BUDGET.

IS THAT INCLUDED IN HERE? SO WE WE'VE COMPLETED THEY'VE ACTUALLY COMPLETED THE WALK OF ALL THREE OF THOSE.

WE'RE STILL WORKING ON THE FINAL REPORT.

THAT'S ACTUALLY GOING TO BE MORE THAN LIKELY A DRAINAGE FUND AND POSSIBLY A GENERAL FUND AS WELL, BUT IT'LL BE MORE FOCUSED ON THE DRAINAGE FUND.

WE DO NOT HAVE PHASE ONE OF ADDRESSING THOSE ISSUES YET IN THERE.

WE DO HAVE SOME DISCUSSION ON OUR DRAINAGE RATES.

THAT WILL BE. OH, YES.

AND YOU WILL HAVE MORE INFORMATION ON THAT.

I JUST DIDN'T INCLUDE A SLIDE THE AUGUST 15TH BUDGET WORK SESSION.

WE DO NOT NEED A RATE INCREASE THIS YEAR.

WE DO HAVE A SMALL $5 MILLION REVENUE BOND SALE THAT WE WILL BE HAVING TO KEEP PROJECTS THAT ARE ALREADY GOING.

THE STREAM BANK STUDY, FROM WHAT I HAVE GATHERED, IS BASICALLY NEARLY DONE.

ONCE THEY GET RID OF IT, WE'RE GOING TO BE PHASING IN SOME KIND OF RATE INCREASE TO TAKE CARE OF ALL THAT.

OKAY, BUT WE DO NOT NEED IT YET.

SO THAT'S BAKED INTO THIS FISCAL YEAR'S BUDGET PLAN.

YES. OKAY.

GREAT. NEXT IS THE RAINY-DAY FUND.

GOOD THAT WE'RE PLANNING ON MOVING 2.8 MILLION INTO IT.

WE'VE STILL GOT THE SAME MECHANISMS WHERE IF WE FIND MONEY IN THE COUCH CUSHIONS AND OTHER THINGS, IT'S GOING TO GO STRAIGHT INTO THE RAINY DAY FUND, RIGHT? WELL, FIRST OF ALL, IT.

SO THE SALES, LIKE THE SALES TAX POLICY AT THE END OF THE YEAR, IF THERE'S MONEY THAT COMES BACK, IT COMES BACK TO COUNCIL TO MAKE THAT DECISION.

AND YOU HAVE MULTIPLE OPTIONS FOR THAT.

BUT RAINY-DAY DAY FUND IS ONE OF THOSE OPTIONS.

AND I WOULD JUST SAY THAT WE'VE GOTTEN RID OF THE COUCH CUSHION THIS YEAR.

WE NO LONGER HAVE THOSE BECAUSE WE NEED EVERYTHING THAT WE CAN GET AT THIS POINT.

UNDERSTOOD. A COUPLE OF THOSE OUTSTANDING SOME OF THE ONGOING LITIGATION AND THE RESOLUTION THAT WE PASSED AND SOME OTHER CITIES HAVE PASSED FOR DART.

THOSE ARE SOME PRETTY SIZABLE COUCH CUSHIONS.

AND LASTLY, AND I'VE TALKED ABOUT THIS BEFORE.

NOW WE'RE PAYING JUST SHY OF $25 MILLION A YEAR IN INTEREST ON OUR DEBT, 24.9 MILLION.

AND WE'RE ABOUT TO ISSUE OUR LARGEST BOND PACKAGE, PROBABLY EVER NEXT YEAR.

SO I THINK SHOOTING FROM THE HIP, WE CAN SAFELY SAY WE'RE ABOUT TO START PAYING CLOSER TO $50 MILLION A YEAR JUST IN INTEREST ON OUR DEBT.

WE KNOW AS WE SHIFT OUR PHILOSOPHY FROM A FAST GROWTH CITY TO A MATURE STABLE CITY THAT EVERYTHING NEEDS MAINTAINING OVER TIME.

AND IF WE ARE TO, I WANT TO I WANT TO TRY TO MOVE AS MUCH OF THE MAINTENANCE-ORIENTED EXPENSES FROM THE DEBT COLUMN TO THE MAINTENANCE

[00:45:06]

COLUMN, HENCE THE NAME MAINTENANCE AND OPERATIONS.

AND I KNOW THAT HAS TO BE DONE OVER TIME, BECAUSE A ONE-TIME SHIFT IS GOING TO BE A MASSIVE ONE-TIME TAX HIKE IN THAT COLUMN.

AND I KNOW THAT THE INTEREST IN SINKING COLUMN, THE DEBT COLUMN OF THE TAX RATE, BECAUSE IT'S SUBJECT TO VOTER APPROVAL, IS EXEMPT FROM THE PROPERTY TAX CALCULATIONS FOR THE M AND O RATE.

BUT I ASSUME BECAUSE WE'RE GOING TO BE TAKING ON SO MUCH ADDITIONAL DEBT AND THE INTEREST THEREIN AT A TIME WHEN INTEREST RATES ARE NOT WHAT THEY WERE WHEN WE HAD OUR LAST BOND REFERENDUM.

I WANT TO MAKE SURE WE HAVE A DELIBERATE PLAN TO SHIFT THAT BURDEN TO THE MAINTENANCE AND OPERATIONS COLUMN OVER TIME, AND RECOUP AS MUCH OF THAT.

DEBT FINANCING AS POSSIBLE.

SO THAT WOULD BE A COUNCIL POLICY DECISION.

BUT I WOULD REMIND YOU THAT WE'RE LIMITED BY THE STATE LEGISLATURE TO 3.5% ON OUR O&M SIDE OF THINGS.

SO, ON THE INS THAT'S CALCULATED DIFFERENT THAN THE OTHERS.

SO, ANYTHING ABOVE 3.5% WOULD HAVE TO GO TO THE CITIZENS FOR A VOTE.

SO IN DOING THAT OVER A COURSE OF SEVERAL YEARS WOULD BE SEVERAL VOTES.

SO, IT'S A COUNCIL POLICY DISCUSSION AND YOU'RE WELCOME TO GIVE THAT DIRECTION.

AND WE CAN DO THE MATH ON WHAT THAT WOULD TAKE.

BUT THE DOWNSIDE OF A FAILED VOTE LIKE THAT, I BELIEVE, IS IT GOES BACK TO THE NO NEW REVENUE RATE OR SOMETHING LIKE THAT.

THERE IS THERE IS A CONSEQUENCE TO THAT.

AND WE CAN FLESH THAT OUT AND PROVIDE THAT TO COUNCIL.

SO WE WANT TO MAKE SURE THAT WE PROVIDE YOU ACCURATE INFORMATION.

BUT THERE WOULD HAVE TO BE SOME ELEMENTS IN THERE, ESPECIALLY IF IT GOES ABOVE THAT 3.5%, BECAUSE WITHIN THAT SALARY INCREASES HEALTH INSURANCE, INCREASES INFLATION, ALL THOSE THINGS HAVE TO BE INCLUDED.

SO IT WOULD BE IT WOULD BE A SIZABLE AND LONG ROAD FOR THE CITY TO GO THAT DIRECTION.

AND FOR THAT EXACT REASON, WE'D HAVE TO SHIFT A LITTLE BIT OVER EVERY FISCAL YEAR.

BUT I WOULD LIKE TO HAVE THAT DISCUSSION AMONG COUNCIL AND PUT IT ON A FUTURE AGENDA.

ANTHONY. THANK YOU, MAYOR.

KAREN, THANK YOU FOR THAT GREAT PRESENTATION.

AND I JUST WANTED TO SAY THANK YOU TO YOU, TO EVERYONE ON THE STAFF WHO'S WORKED ON THIS BUDGET.

AND, AND TO MARK AND PAIGE AND EVERYONE INVOLVED HERE FOR THE FORESIGHT THAT THE STAFF HAS BEEN EXERCISING.

THAT PREPARES US FOR A DIFFICULT BUDGET LIKE THIS ONE.

YOU KNOW, YOU MENTIONED HOW SOME OF THE SAVINGS FROM THE CHANGE IN THE TAKE OR PAY POLICY ARE KICKING IN.

AND BOY, WE DIDN'T KNOW HOW MUCH WE WERE GOING TO NEED THAT.

RIGHT? BUT MARK, I KNOW YOU'VE BEEN WORKING ON THAT FOR YEARS, PAIGE.

OBVIOUSLY, YOU SPEARHEADED YEARS OF LITIGATION ON THAT.

AND SO, I MEAN, AND MANY OTHERS ON THE STAFF AND OUTSIDE OF THE CITY HAVE WORKED ON THAT.

YOU KNOW, THE DART ISSUE, AS COUNCILMEMBER WILLIAMS ALLUDED TO, IS ANOTHER ONE WHERE, YOU KNOW, RIGHTSIZING THAT FUNDING IS SOMETHING THAT'S GOING TO POSITION US WELL IN EVERY AREA OF THE BUDGET IN, IN THE LONG TERM.

SO I JUST WANT TO COMMEND THE STAFF FOR BEING PROACTIVE, BOTH IN ADDRESSING THIS SITUATION THIS YEAR IN IN ADVANCE OF COMING YEARS, BUT ALSO FOR THE STEPS THAT HAVE BEEN TAKEN THAT PREPARED US TO BE IN A PLACE WHERE WE COULD CONFRONT A DIFFICULT BUDGET AND NOT BE, YOU KNOW, TOTALLY AT A LOSS.

SO SO THANK YOU FOR THAT.

A COUPLE OF QUESTIONS.

FIRST, I THINK IT WAS ON SLIDE 20, BUT THAT WAS 26 SLIDES AGO.

SO YOU DON'T NECESSARILY NEED OKAY, GO BACK THERE.

BUT WHEN YOU SHOWED THE NUMBERS YOU SHOW EVERY YEAR ABOUT THE INCREASE FOR THE AVERAGE HOMEOWNER.

AND THERE IT IS. SLIDE 20.

YEAH. THE INCREASE FOR THE AVERAGE HOMEOWNER, THE $184 CHANGE FROM THE PRIOR YEAR THAT AS I BELIEVE IS THE CASE EVERY YEAR, IS THE AVERAGE HOMEOWNER WHO HAS A HOMESTEAD EXEMPTION BUT NO OTHER EXEMPTIONS.

THAT IS CORRECT. AND OF COURSE, WE KNOW THAT MANY HOMEOWNERS IN PLANO HAVE OTHER EXEMPTIONS, INCLUDING THE SENIOR TAX FREEZE AND VARIOUS OTHER YOU KNOW, PERHAPS DISABILITY EXEMPTIONS AND OTHER EXEMPTIONS THAT THAT IMPACT THAT.

I WONDER IF ON AUGUST 12TH WE COULD SEE THAT NUMBER YOU KNOW, FOR, THE TRUE AVERAGE PLANO HOMEOWNER, WHICH WOULD INCLUDE THE AVERAGE OF ALL PLANO HOMEOWNERS, NOT JUST THE AVERAGE OF THOSE WHO HAVE THE HOMESTEAD EXEMPTION, BUT NO OTHER EXEMPTIONS BECAUSE I.

OKAY. AND I CAN ASK THEM TO RUN THAT.

BUT REALLY, THE WAY THE 65 AND OVER HAPPENS WHEN THEY TURN 65, SAY, IF THEY TURN 65 LAST YEAR, THAT 373 408.

THAT'S THEIR NUMBER EXACTLY.

OKAY, SO WHAT I WAS GETTING AT IS SO WE HAVE, YOU KNOW, WE HAVE HOMEOWNERS, YOU KNOW, WHO'S CHANGED FROM PRIOR YEAR ZERO.

AND THEN WE HAVE, YOU KNOW, CLEARLY FOR YOU KNOW, FOR AN AVERAGE HOMEOWNER OUT OF, OUT OF THE SET OF HOMEOWNERS WHO HAVE THE HOMESTEAD EXEMPTION, BUT NO OTHER EXEMPTIONS, THAT AVERAGE INCREASE IS 184.

SO THE AVERAGE INCREASE FOR ALL PLANO HOMEOWNERS, NOT JUST THOSE WHO HAVE NO EXEMPTION EXCEPT THE HOMESTEAD EXEMPTION MUST BE, YOU KNOW, SOMEWHERE

[00:50:04]

BETWEEN 0 AND 184.

AND I'M JUST CURIOUS WHAT THAT THAT NUMBER IS AND I WILL NEED TO GET.

YEAH, I'LL NEED TO GET THE CENTRAL APPRAISAL DISTRICT TO RUN THAT.

WE DON'T HAVE ACCESS TO ALL THAT.

SO. YEAH.

BUT I WILL TRY TO GET I'LL SEE WHAT THEY CAN DO.

HOW ABOUT THAT? THAT'S GREAT.

OKAY. IF THAT'S BEYOND OUR CONTROL AND SOMETHING THAT WOULD HAVE TO BE RUN AT THE CAB, THEY TELL YOU, YOU KNOW, WE'VE GOT A MILLION OTHER IRONS IN THE FIRE, I TOTALLY UNDERSTAND I DON'T WANT TO, YOU KNOW, PUT EXTRA ON YOU, BUT I JUST THOUGHT THAT MIGHT THAT MIGHT HELP TO CAST SOME OF THIS IN A DIFFERENT LIGHT.

AND PERHAPS A MORE ACCURATE LIGHT IN TERMS OF WHAT THE IMPACT TRULY IS, YOU KNOW, ACROSS ALL PLANO HEIGHTS.

AND THEN I ALSO WANTED TO ADDRESS SHELBY'S POINT, COUNCIL MEMBER WILLIAMS POINT.

I THINK ONE OF THE BIG DISCUSSION POINTS IN THIS BUDGET HAS BEEN A PHILOSOPHICAL SHIFT FROM A, A GROWTH MINDSET TO A MAINTENANCE MINDSET.

AND ONE OF THE JUSTIFICATIONS THAT I'VE ALWAYS HEARD OVER THE YEARS FOR NEEDING TO DO THINGS THROUGH, YOU KNOW, 20 OR 30 YEAR BOND DEBT IS THAT IT'S IT'S EQUITABLE TO, TO CITIZENS OVER TIME SO THAT, YOU KNOW, SOMEBODY WHO LIVES HERE TEN YEARS FROM NOW AND IS BENEFITING FROM THE LAST TEN OR 20 OR 30 YEARS OF THE USEFUL LIFE OF, OF A STREET, IS PAYING FOR IT, NOT JUST THE PERSON WHO HAPPENED TO LIVE THERE WHEN WE BUILD IT, BUT IF WE THINK THAT'S FLATTENING AND WE'RE IN A MATURE CITY MINDSET AS OPPOSED TO A GROWTH MINDSET THAT MIGHT SUPPORT COUNCIL MEMBER WILLIAMS IDEA OF YOU KNOW, OF SAYING THAT WE DON'T NECESSARILY NEED TO HAVE THIS PAID BY DEBT OVER TIME.

THAT BEING SAID, AS I'VE SAID IN PREVIOUS DISCUSSIONS OF THIS, I UNDERSTAND THAT IT WOULD TAKE MANY, MANY, MANY YEARS TO, TO MAKE THAT SHIFT WITHOUT A TREMENDOUS TAX BURDEN INCREASE ON PLANO RESIDENTS IN THE CURRENT YEAR FOR SEVERAL YEARS RUNNING, AS YOU ALLUDED TO CITY MANAGER ISRAELSON.

SO I THINK WE COULD START MAKING YOU KNOW, SHIFTS IN THAT IN THAT REGARD, THOUGH.

AND THEN THE FINAL QUESTION AND I DON'T KNOW IF THIS IS FOR YOU, KAREN OR FOR YOU, MARK, BUT THE WATER AND SEWER EXTRA FUND BALANCE BEING AT 82 DAYS, OBVIOUSLY, WE'RE LOOKING AT AN $80 MILLION REVENUE BOND ISSUANCE.

I KNOW THAT THAT FUND BALANCE, YOU KNOW, EXCESS ABOVE THE TARGET IS NOT GOING TO TAKE CARE OF ALL OR PROBABLY EVEN A HUGE PORTION OF THE $80 MILLION ANTICIPATED REVENUE BOND ISSUANCE.

BUT COULD WE LOOK AT TAKING THAT DOWN TO THE TARGET AND MAYBE DECREASING THE AMOUNT THAT WE NEED TO BORROW.

YEAH. AND I WILL TELL YOU THIS TOMORROW I HAVE A MEETING WITH NU-GEN AND I'VE GOT SEVERAL IDEAS TO THROW AT THEM ON THIS.

SO, THERE WE'RE GOING TO BE WORKING THROUGH SOME NEW NUMBERS.

I SEE WHAT YOU'RE SAYING, BUT THE WAY THIS WORKS.

OKAY, WE PASS OFF, WE'RE GOING TO DO 80 MILLION OKAY.

EVEN IF IT WAS FOR ONE YEAR, ALL THAT GOES INTO THE NEXT YEAR'S BUDGET IS THE ONE INTEREST PAYMENT.

OKAY. THAT'S JUST THE WAY IT WORKS.

THE NEXT YEAR YOU'RE GOING TO HAVE TWO PRINCIPAL PAYMENTS, TWO INTEREST PAYMENTS.

SO, I THINK I NEED TO GIVE YOU A LONGER TERM LOOK ON WHAT IS GOING TO HAPPEN TO THE FUND BALANCE, BUT YOU ARE GOING TO SEE NEW NUMBERS OUT OF THE WRIGHT MODEL.

I'M JUST GOING TO GUARANTEE YOU AUGUST 12TH YOU WILL HAVE AUGUST 15TH.

SORRY. WE WILL BE HAVING DISCUSSION ON WATER AND SEWER.

FANTASTIC. YEAH.

THANK YOU FOR THAT, KAREN.

YEAH, I WAS JUST SAYING THAT EVEN IF IT'S A SMALL AMOUNT OF THE 80 MILLION IF ONCE THE NEW MODEL IS IMPLEMENTED, IF WE'RE STILL OVER OUR TARGET, RATHER THAN HAVING EXCESS MONEY SITTING THERE AND THEN BORROWING ADDITIONAL MONEY.

YOU KNOW, MAYBE WE COULD LOOK AT TAKING THAT DOWN TO THE TARGET AND DECREASING BY WHATEVER AMOUNT THAT IS THE AMOUNT THAT WE ACTUALLY NEED TO BORROW.

WE'LL BRING BACK THOSE OPTIONS FOR DISCUSSION.

THANK YOU. ANYBODY ELSE? THANK YOU. KAREN. YEAH.

WELL DONE. WE APPRECIATE IT.

WE KNOW THIS IS GOING TO BE, YOU KNOW, TOUGH TO SWALLOW.

YEARS EARLIER HAVE REALLY NOT HAD THIS TYPE OF PRESSURE ON US.

BUT I KNOW WE'RE GOING TO DO THE RIGHT THING FOR OUR CITIZENS.

AND I APPRECIATE EVERYBODY'S QUESTIONS AND WORK ON THIS.

AND THANKS AGAIN. WE'LL JUST LOOK FORWARD TO AUGUST 12TH FOR MORE INFORMATION.

BUT THAT BEING SAID, THERE'S NO FURTHER BUSINESS.

WE'RE ADJOURNED. OKAY.

* This transcript was compiled from uncorrected Closed Captioning.