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[PRELIMINARY OPEN MEETING]

[00:00:04]

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

THE COUNCIL WILL NOW RECESS INTO EXECUTIVE SESSION IN TRAINING ROOM TO HOLD A CLOSED EXECUTIVE MEETING PURSUANT TO THE PROVISIONS OF VERNON'S TEXAS CODE ANNOTATED GOVERNMENT CODE, CHAPTER 551. THE OPEN MEETINGS ACT IN ACCORDANCE WITH THE AUTHORITY CONTAINED IN SECTION 551.071, TO CONSULT WITH THE ATTORNEY TO RECEIVE LEGAL ADVICE AND DISCUSS LITIGATION AND SECTION 551.087 TO DISCUSS ECONOMIC DEVELOPMENT MATTERS.

THANK YOU. I NOW DECLARE THAT THE PLANO CITY COUNCIL PRELIMINARY OPEN MEETING IS RECONVENED INTO OPEN SESSION, THAT ALL COUNCIL MEMBERS ARE PRESENT.

OUR FIRST ITEM ON THE PRELIMINARY AGENDA IS CONSIDERATION AND ACTION RESULTING IN THE EXECUTIVE SESSION.

OUR NEXT ITEM IS THE FIVE YEAR FINANCIAL FORECAST.

KAREN RHODDES-WHITLEY.

GOOD EVENING. KAREN RHODES-WHITLEY, BUDGET DIRECTOR FOR THE CITY OF PLANO.

IT IS OUR PLEASURE TO PRESENT THE FIVE YEAR FINANCIAL FORECAST TO THE CITY COUNCIL.

THIS ACTUALLY MARKS THE KICKOFF OF THE FISCAL YEAR 26-27 BUDGET PROCESS.

DURING THE FISCAL ROADMAP PLANNING PROCESS, MARK GAVE US AUTHORIZATION TO HIRE IN NEW GEN STRATEGIES AND SOLUTIONS TO BUILD US A FINANCIAL FORECAST MODEL. IT ALSO INCLUDES AN ECONOMIC MODEL.

HE'S GOING TO, THEY'RE GOING TO GO OVER THE GENERAL FUND FINANCIAL FORECASTS.

AND AT THE END OF THAT, I'M GOING TO GO OVER THE ENTERPRISE FINANCIAL FORECAST.

RIGHT NOW THIS IS MATTHEW GARRETT AND HE'S WITH NEW GEN, AND THEN STEVE, STEVE DOOGUE.

IT WILL PRESENT PART OF IT TOO. AND THEN I'M GOING TO INTERMIX MYSELF.

COME ON UP, MATTHEW. OKAY. GO AHEAD. EXCELLENT.

THANK YOU SO MUCH, KAREN. GOOD EVENING. MAYOR.

MEMBERS OF THE COUNCIL AGAIN. MATTHEW GARIN NEW GEN, PLEASURE TO BE BACK IN FRONT OF YOU.

JOINED BY STEVE DOOGUE. HE AND I ARE GOING TO TAG TEAM THIS PRESENTATION IN ADDITION TO QUEUING IN KAREN ON A COUPLE KEY SLIDES.

SO TODAY WE ARE DOING AN UPDATE ON THE GENERAL FUND FORECAST.

THIS LONG TERM FINANCIAL FORECAST LOOKS OUT OVER A BROADER SPAN EVEN THAN THE FIVE YEARS YOU'RE SEEING, BUT FIVE YEARS IS REALLY HONED IN AND IN WHAT WE'RE SHARING FOR YOU THIS EVENING.

IF YOU LOOK AT THIS, YOU'LL SEE YOUR, YOUR GENERAL FUND EXPENDITURES WITH A NUMBER OF ASSUMPTIONS, WHICH WE'LL POUR OVER HERE SHORTLY, WE'LL GROW AT APPROXIMATELY 3.2% PER ANNUM.

AND SO THAT GROWTH RATE IS ABOUT $430 MILLION IN 26 TO JUST OVER 500 MILLION BY 2031.

THIS DOES INCLUDE A COUPLE OTHER KEY INPUTS, AND WE'LL KIND OF DISCUSS THAT MORE ON THIS SLIDE.

SO BIG MOVES THAT ARE ALREADY BAKED IN, AS IT WERE, TO THIS FORECAST RELATE TO THE TOP TWO ROWS WITH THE BIGGEST BEING YOUR FIRE SHIFT CHANGES ROUNDING OUT TO ABOUT $21 MILLION OF ADDITIONAL EXPENSE BY 2031, WITH FIRE STATION 14 OPERATIONAL EXPENSES AT FOUR AND A HALF, OR 4.6 MILLION IN 2031, AND THEN A NUMBER OF OTHER ITEMS THAT ARE SORT OF BAKED INTO THE TOTALS.

DID YOU HAVE ANYTHING ELSE TO ADD TO THIS? YEAH. LET ME.

ON THE FIRE SHIFT CHANGES. THIS IS THE COST OVER THE FIVE YEARS FOR ADDING IN THE NEW STAFFING LEVELS IN EACH OF THE YEARS.

THE BOTTOM SECTION IS OUR CIP COMING ONLINE AS EVERYBODY KNOWS, WE HAD THE 647 MILLION DOLLAR BOND REFERENDUM PACKAGE LAST YEAR. ALL THE PROPOSITIONS PASSED.

SO WE HAVE INCLUDED IN ALL THE OPERATIONAL COSTS OF PRODUCING THOSE FACILITIES ONLINE.

GO AHEAD. EXCELLENT. ALL RIGHT. I'M ALSO REMISS IN NOT SAYING PLEASE INTERJECT IF YOU HAVE ANY QUESTIONS AS I'M ON A SLIDE AS OPPOSED TO WAITING TILL THE END.

I PREFER A CONVERSATION, BUT I AM HERE FOR THE PRESENTATION.

SO WE'LL WE'LL DO IT THIS WAY UNLESS YOU RAISE YOUR HAND OR BUZZ IN.

SO AGAIN, UNDER THE HOOD, AS I SAY A LOT IN THESE MODELS, THERE ARE SOME ASSUMPTIONS, QUITE A FEW OF THEM REALLY.

AND WE'RE GOING TO TALK ABOUT A COUPLE OF THOSE KEY ASSUMPTIONS.

THE INFLATION FACTORS HERE EXCLUDING AS YOU'LL SEE, THE FIRE SHIFT PERSONNEL, WE'RE ASSUMING A 3% PER YEAR ADJUSTMENT.

HEALTH RELATED BENEFITS ARE AT 5% PER YEAR. YOU'LL ALSO SEE SOME OTHER LARGER.

WATER, WE UNDERSTAND, IS GOING TO GROW AT A PACE THAT'S GREATER THAN GENERAL INFLATION.

THAT'S SUBJECT TO CHECK WITH NORTH TEXAS WHEN THEY PUT OUT NEW NUMBERS.

RIGHT NOW, THE MODEL IS ASSUMING 4.3 TO 8% OVER TIME.

[00:05:04]

ADDITIONALLY WE DO HAVE SOME BASE INFLATION. FUEL IS ONE THAT YOU MAY ALL THINK OF IN CURRENT CONTEXT THAT HAS NOT BEEN ADJUSTED FOR THE VERY CURRENT, VERY SHORT TERM SPIKE WE'RE SEEING. OVERALL, WE'RE USING ANNUAL ENERGY OR I'M SORRY, THIS IS THE ENERGY INFORMATION ADVISORY, I GUESS COMMITTEE'S FORECAST ON RATES.

SO IT IS A LONGER TERM PROJECTION. SO IT DOESN'T EXACTLY TAKE INTO ACCOUNT CURRENT MEDIA.

HOWEVER, WE DO HAVE A SAMPLE FROM MARCH OF 2026 THAT WE USE FOR OUR GENERAL INFLATIONARY FACTOR.

SO INSTEAD OF JUST APPLYING A BASIC MUNICIPAL COST INDEX, WHICH IS PRETTY ROUTINE FOR CITIES WHO DO FORECAST, WE ACTUALLY LOOKED AT THIS SURVEY OF PROFESSIONAL FORECASTERS.

FEDERAL RESERVE BANK PUBLISHES THIS INFORMATION.

I BELIEVE IT'S EVERY FOUR MONTHS TO QUARTERLY.

I CAN'T RECALL THE EXACT FREQUENCY. BUT WHAT YOU SEE IS APPROXIMATELY I THINK IT'S 34 FORECASTERS.

AND EACH DOT REPRESENTS THEIR ESTIMATE OF HOW THINGS ARE GOING TO GO FOR 2026.

SO YOU'LL SEE WE PRETTY QUICKLY CAN STRIKE A MEDIAN THAT'S 2.6.

AND THEN TO BE A LITTLE BIT MORE CONSERVATIVE WE ARE ESTIMATING EXPENSES.

WE'D RATHER SHOOT A LITTLE HIGH THAN UNDERSELL.

WE WENT FOR THE 75TH PERCENTILE AS OUR TARGETED INFLATION FACTOR FOR A GIVEN YEAR.

SO AFTER KIND OF EXPLAINING YEAR ONE, YOU CAN SEE HOW THIS PANS OUT.

IT DOES REDUCE OVER TIME. AND IN EACH YEAR YOU'LL SEE THAT MEDIAN POINT.

SO THAT BLACK LINE GOES FROM 2.6 DOWN TO 2.2.

WHEREAS OUR CURRENT MODEL IS ASSUMING THE YELLOW OR GOLD 75TH PERCENTILE FROM 2.8 DOWN TO 2.4 OVER THIS HORIZON.

AGAIN AS THIS UPDATES, WE CAN UPDATE ANNUALLY AND WE'LL TRY TO STAY ON TOP OF IT.

BUT RIGHT NOW IT'S LOOKING LIKE A DECLINING COST ENVIRONMENT.

AND SO WE'RE REFLECTING THAT IN OUR FIVE YEAR HORIZON.

SORRY, NOT DECLINING COST, LESS THAN GENERAL INFLATION LONG TERM 3%.

ALL RIGHT. SO FOR TOTAL APPROPRIATIONS, AGAIN, THIS IS YOUR GENERAL FUND BUDGET.

NOTABLY THERE ARE A COUPLE NEW TRANSFERS. AND I THINK KAREN, YOU WANTED TO TALK ABOUT THOSE, CORRECT? YEAH. THE GRAY BARS THAT YOU WILL SEE UNDER THE 26 COLUMN BACK IN FEBRUARY WE CAME TO YOU ALL.

IT WAS ABOUT $7 MILLION WE COLLECTED OVER MAINLY FROM ONE TIME PAYMENTS ON OUR SALES TAX.

AT THAT TIME, IT WAS THE DIRECTION OF THE CITY COUNCIL.

WE PUT 2 MILLION IN THE LAND BANKING PROGRAM AND THE REST WENT INTO THE RAINY DAY FUND.

SO THAT IS WHAT HAPPENED IN FEBRUARY. WE WANTED TO REINTRODUCE, ESPECIALLY FOR THE NEW CITY COUNCIL MEMBERS, BACK IN 2006 A LONG TIME AGO, WE DEVELOPED AN ECONOMIC DEVELOPMENT INCENTIVE PROGRAM.

FOR YEARS, WE PUT IN $0.02 OF THE PROPERTY TAX.

SEVERAL YEARS AGO, I WANT TO SAY 5 OR 7 YEARS AGO, WE HAD DECIDED TO CAP THAT FUND.

I THINK IT WAS LIKE $8.5 MILLION THIS LAST YEAR.

WE PUT IN 11. WE'RE GOING TO REINTRODUCE, GOING BACK TO THE $0.02 ON THE PROPERTY TAX RATE DURING THIS UPCOMING BUDGET YEAR.

SO RIGHT NOW WE DO HAVE THAT PROGRAMED IN. IT'S ABOUT $13 MILLION.

ALL RIGHT. THANK YOU FOR THAT. AND IN ADDITION, YOU SEE YOUR RECURRING TRANSFERS PRIMARILY COMPRISED OF THE CAPITAL MAINTENANCE FUND, ECONOMIC DEVELOPMENT SORT OF IN SECOND PLACE, FOLLOWED BY RISK MANAGEMENT AND SOME OTHER SMALL ONES.

SO ALL RIGHT. SO IN A NUTSHELL, YOUR REVENUES FLOW THROUGH INTO THE GENERAL FUND AS YOU SEE ON SCREEN, THE TOP TWO REALLY ARE YOUR BIGGEST YOUR PROPERTY TAX AND YOUR SALES TAX.

WITHIN THOSE TWO, THAT COMPRISES 75% APPROXIMATELY OF YOUR TOTAL REVENUE.

SO YOU SEE YOU HAVE SOME TRANSFERS IN FRANCHISE FEES.

TRANSFERS IN ARE ROUGHLY 10%. FRANCHISE FEES AND FEES AND SERVICE CHARGES CATEGORICALLY ARE AROUND 5% OF THE TOTAL.

AND THEN SOME SMALLER ONES BELOW THAT. SO REALLY OUR FOCUS ARE ON THOSE TWO BIG BANNER FACTORS RELATIVE TO YOUR REVENUES.

AND WITH THAT, STEVE'S GOING TO DISCUSS A LITTLE BIT ABOUT HOW WE'VE PROJECTED THOSE.

THANK YOU. SO THE KEY VARIABLE WE LOOK AT WHEN WE'RE PROJECTING FORWARD PROPERTY TAX REVENUES IS HOUSE PRICES.

WE LOOK AT THE DALLAS-PLANO-IRVING HOUSE PRICE INDEX.

THIS IS PUBLISHED BY THE FEDERAL RESERVE. THIS ACTUALLY TURNED NEGATIVE, SLIGHTLY NEGATIVE, IN OCTOBER 2025. THAT'S THE MOST RECENT DATA WE HAVE.

THE INDEX HASN'T HASN'T TURNED NEGATIVE SINCE LATE 2011.

SO THIS IS THE FIRST TIME WE'VE SEEN NEGATIVE HOUSE PRICE GROWTH IN THE PLANO-DALLAS-IRVING AREA.

SO YOU CAN SEE HOUSE PRICE GROWTH HAS COME DOWN SIGNIFICANTLY, PARTICULARLY FROM THE COVID ERA EARLY 2022.

[00:10:04]

2022, FOR EXAMPLE, WHERE ANNUAL HOUSE PRICE CHANGES WERE OVER 25% PER YEAR.

OUR FINANCIAL MODEL USES PROJECTED HOUSE PRICE GROWTH FOR THE NEXT TEN YEARS.

WE MAKE THE ASSUMPTION THAT IT'S GOING TO RETURN TO ITS LONG TERM AVERAGE GROWTH OF JUST OVER 5% PER YEAR.

AND THE SPEED AT WHICH IT RETURNS TO THAT AVERAGE GROWTH IS BASED ON A STATISTICAL MODEL THAT'S INFORMED BY THAT HISTORICAL HOUSE PRICE DATA SHOWN HERE.

THE REASON WE LOOK AT HOUSE PRICE GROWTH IS THAT THERE'S A VERY STRONG CORRELATION BETWEEN THESE HISTORICAL CHANGES AND THAT HOUSE PRICE INDEX AND SUBSEQUENT CHANGES IN THE ASSESSED MARKET VALUE FOR PLANO, AS ASSESSED BY THE CENTRAL APPRAISAL DISTRICT, AS SHOWN ON THIS CHART.

SO HISTORICALLY, THERE'S BEEN ABOUT EVERY 1% INCREASE IN HOUSE PRICE GROWTH, WHICH IS SHOWN ON THE HORIZONTAL AXIS.

THERE HAS TRANSLATED TO AROUND A 0.75% INCREASE IN ASSESSED MARKET VALUE.

SO BASED ON THE MOST RECENT CHANGE IN HOUSE PRICES, WHICH WAS SLIGHTLY NEGATIVE, THAT PUTS US WHERE THAT RED DOT IS.

AND THAT WOULD BE CONSISTENT WITH ALMOST NO MARKET VALUE GROWTH IN THIS CURRENT FISCAL YEAR.

OVERALL TOTAL MARKET VALUE GROWTH, WE'RE PROJECTING AT 3.3% PER YEAR.

SO THIS INCLUDES GROWTH ON THE VALUE OF EXISTING PROPERTIES.

IT ALSO INCLUDES NEW MARKET VALUE COMING ONLINE.

SO THIS IS FOR NEW DEVELOPMENTS OR MAJOR REDEVELOPMENTS.

AND HERE WE'RE ASSUMING 650 MILLION PER YEAR.

THAT'S INFORMED BY DISCUSSIONS WITH CITY STAFF.

I THINK KAREN, DID YOU WANT TO MENTION THAT REAL QUICK? WE HAVE APRIL 7TH, WE WILL BE MEETING WITH COLLIN COUNTY APPRAISAL DISTRICT IN APRIL 21ST DENTON COUNTY APPRAISAL DISTRICT. SO WE'RE GOING TO HAVE MORE INFORMATION.

RIGHT NOW THE ONLY THING THAT I KNOW FOR SURE THAT IS CORRECT ON THIS CHART IS THAT 650 MILLION.

THEY DID LET ME KNOW THE OTHER DAY. OUR NEW GROWTH WAS AT $647 MILLION FROM ALL THE INFORMATION THEY HAVE RECEIVED.

SO THAT THAT'S A VERY GOOD NUMBER. RIGHT NOW WE HAVE A 2.5% INCREASE ON OUR EXISTING PROPERTY VALUES.

THE OTHER DAY I DID HEAR ON THE RADIO THAT THE YEAR OVER YEAR DIFFERENCE IN THE AVERAGE HOME THAT'S SELLING IS $38,000 LESS. SO WE'RE JUST NOT GOING TO KNOW WHAT OUR EXISTING PROPERTY VALUES ARE GOING TO GO UP UNTIL WE RECEIVE THAT PRELIMINARY ROLL.

BUT RIGHT NOW, THIS IS THE INFORMATION THAT WE HAVE GATHERED FROM THE APPRAISAL DISTRICTS.

SO WHAT'S ILLUSTRATED IN THIS CHART. THE THE ORANGE LINES SHOW THE EXISTING MARKET VALUE.

AND THE DARK ORANGE IS THE THIS NEW MARKET VALUE THAT'S COMING ONLINE.

BUT WHEN IT COMES TO RAISING PROPERTY TAX REVENUE, THE CITY ONLY TAXES BASED ON A FRACTION OF THIS.

AND THIS IS WHY WE HAVE THOSE OTHER BARS SHOWING THAT THE NET TAXABLE VALUE, WHICH IS 77%, IT'S ONLY 77% OF THE TOTAL MARKET VALUE. THE DIFFERENCE, THE REDUCTION IN THAT MARKET VALUE IS MOSTLY DUE TO EXEMPTIONS, WHICH WE'LL DISCUSS A LITTLE MORE ON THE NEXT SLIDE. THERE'S ALSO THE SENIOR PROPERTY TAX FREEZE.

WHEN A RESIDENT TURNS 65, THEIR PROPERTY TAX IS FROZEN.

AT THEIR CURRENT LEVELS, IT DOESN'T INCREASE.

SO THIS EFFECTIVELY REDUCES THE PROPERTY TAX BASE FOR RESIDENTS AGED 65 AND OLDER.

THIS BREAKS DOWN THE REDUCTION IN MARKET VALUE.

SO AS WE SAW PREVIOUSLY, MARKET VALUE IN FY 26 IS ESTIMATED AT $83.3 BILLION.

THIS IS REDUCED BY EXEMPTIONS. EXEMPTIONS ARE MOSTLY MADE UP OF THE HOMESTEAD EXEMPTION OF 20% OF OF PRIMARY RESIDENCES TAXABLE VALUE.

IT ALSO REFLECTS EXEMPTIONS FOR NONTAXABLE ENTITIES LIKE SCHOOLS.

THERE ARE OTHER APPEALS AND OTHER ADJUSTMENTS.

THERE'S ALSO A 10% CAP ON THE INCREASE IN THE TAXABLE VALUE OF RESIDENCES.

THIS IS LESS SIGNIFICANT NOW THAT WE'RE SEEING SLOWER HOUSE PRICE GROWTH IN PREVIOUS YEARS, IT WAS QUITE SIGNIFICANT, ESPECIALLY AFTER COVID WHEN WE SAW THAT BIG HOUSE PRICE SPIKE.

BUT THESE DAYS IT'S A LOT SMALLER. FROZEN TAXABLE VALUES ARE REDUCED THE MARKET VALUE BY 8.8 BILLION.

SO AGAIN, THAT'S VERY SIGNIFICANT. AND THERE'S SOME OTHER SMALLER ADJUSTMENTS, INCLUDING TIF CAPTURED VALUE, WHICH GIVES US WHICH GETS US TO OUR FREEZE ADJUSTED TAXABLE VALUE OF 54 BILLION.

[00:15:05]

THE AMOUNT OF PROPERTY TAX THAT IS FORGONE DUE TO THE SENIOR PROPERTY TAX FREEZE IS INCREASING OVER TIME.

THE IN FY 26, I BELIEVE IT IS AROUND, EXCUSE ME, 15 MILLION OF FORGONE REVENUE.

SO THAT'S THE DIFFERENCE BETWEEN WHAT THE SENIOR RESIDENTS WOULD PAY VERSUS WHAT THEY DO ACTUALLY PAY AT THEIR FROZEN VALUES.

THE FORGONE REVENUE IS PREDICTED TO INCREASE IN FUTURE.

WE ARE ASSUMING IT INCREASES IN LINE WITH RECENT TRENDS AND THEN THE AND THEN IT STABILIZES IN FY-31, 2031, AS THE PROPORTION OF RESIDENTS AGED 65 AND OLDER STABILIZE.

SO TURNING TO SALES TAX WE PROJECT SALES TAX USING THE SAME METHODOLOGY OF LEWIS MCLEAN, WHO IS A FINANCE EXPERT WHO'S PREVIOUSLY WORKED WITH THE CITY OF PLANO. SALES TAX REVENUES ARE PROJECTED BASED ON INFLATION, POPULATION GROWTH AND ADDITIONAL ECONOMIC GROWTH OF AROUND 1.8% PER YEAR.

WE MODEL THE CITY'S POLICY OF BUDGETING SALES TAX REVENUE BASED ON THE PRIOR THREE YEARS, ACTUAL SALES TAX REVENUE PLUS 3%. SO THE, IN THIS CHART, THE CITY'S BUDGETED SALES TAX REVENUE IS THE BLUE LINE.

THE PROJECTED ACTUAL SALES TAX REVENUE IS THE ORANGE LINE.

AND THE DIFFERENCE BETWEEN THE TWO IS CONTINGENT REVENUE.

SO THE CITY BASICALLY ALLOWS FOR A BUFFER CONSERVATIVE BUFFER BETWEEN WHAT THEY'RE BUDGETING, THE SALES TAX REVENUE WILL BE AND WHAT IT'S PROJECTED TO ACTUALLY BE.

KAREN, DID YOU HAVE SOMETHING ON THAT? OH, SORRY. WELL, I JUST WANTED TO INTERRUPT.

I MEAN, JUST ESPECIALLY FOR THE NEW ONES. WE'VE BEEN ON THAT THREE YEAR AVERAGE SINCE 2008.

IT DEFINITELY SHIELDS US FROM ECONOMIC DOWNTURNS.

I DON'T KNOW IF Y'ALL SAW THE DALLAS MORNING NEWS REPORTED THE CITY OF DALLAS IS RUNNING A DEFICIT BECAUSE OF THEIR SALES TAX PROJECTIONS.

SO I'M VERY THANKFUL THAT WE ARE ABLE TO HAVE THIS IN PLACE.

WE DO DO A THREE YEAR AVERAGE. WE NET OUT ANY OF THE AUDIT ADJUSTMENTS.

SO ONCE AGAIN, WE CAME, WE RECEIVED SOME ADJUSTMENTS AND SOME ONE TIME PAYMENTS IN AUGUST AND SEPTEMBER.

WE HAVE NETTED THOSE OUT OF THE NUMBER FOR THE COMING UP YEAR.

FOR THIS YEAR, WE ARE ESTIMATING WE'RE GOING TO COLLECT AROUND $131 MILLION, WITH US GOING BACK TO THE THREE YEAR AVERAGE IN THE NEXT YEAR TO $129 MILLION. SO IN ADDITION TO THE PROJECTED SALES TAX REVENUES AND THE PROJECTED PROPERTY TAX REVENUES, WE ALSO MAKE SOME OTHER ASSUMPTIONS ABOUT ALL THE OTHER SMALLER REVENUE STREAMS RECEIVED BY THE CITY OF PLANO'S GENERAL FUND. WE ASSUME FRANCHISE FEES FOR CABLE AND TELEPHONE SERVICES FALL AT 5% PER YEAR.

OTHER FRANCHISE FEES AND ALL OTHER MISCELLANEOUS USER FEES ARE ASSUMED TO INCREASE WITH GENERAL INFLATION.

WE ASSUME NO CHANGE IN BUILDING PERMIT REVENUE.

WATER AND WASTEWATER TRANSFERS INTO THE GENERAL FUND ARE BASED ON A WATER AND WASTEWATER RATE STUDY THAT WAS CARRIED OUT LAST YEAR.

AND WE JUST POINT OUT THAT THIS DOES NOT INCLUDE OR THE MODEL DOES NOT FACTOR IN ANY FUTURE FEE REVISIONS, WHICH WHICH MAY OCCUR IN THE NEXT FEW YEARS. AND I'LL PASS BACK TO YOU, MATTHEW.

YEAH. THANK YOU. WONDERFUL. THANKS, STEVE. SO WE'VE SHOWN YOU THE EXPENDITURE SIDE.

THAT'S WHERE I STARTED. STEVE DID A DEEP DIVE ON THE WAY WE FORECASTED THE WAY WE'RE PROJECTING YOUR REVENUES.

WE'RE NOW GOING TO TALK A LITTLE BIT ABOUT THE BANNER TOPIC OF TAX RATES. NOT THE RATE SO MUCH AS THE TAX POLICY.

WITH DIFFERENT CHANGES, YOU'VE PROBABLY HEARD OF THIS, BUT AS NEW COUNCIL THERE IS A NO NEW REVENUE RATE.

THERE IS A VOTER APPROVAL RATE. AND THOSE ARE TWO VERY IMPORTANT NUMBERS TO OPERATE BETWEEN.

KAREN IS ONE OF THE FOREMOST ADVISORS ON THAT TOPIC.

SO I WILL NOT PRETEND TO TEACH YOU THAT, BUT I AM GOING TO BE TALKING ABOUT THOSE TWO.

AND SO IF YOU LOOK AT THE SLIDE WITH THE GENERAL FUND REVENUES AND A NO NEW REVENUE RATE.

SO THIS ASSUMES THE PROPERTY TAX FROM EXISTING PROPERTIES WOULD BE HELD FLAT.

AS THE NAME IMPLIES, NO NEW REVENUE MEANS NO NEW ON EXISTING.

YOU'RE STILL GOING TO HAVE VALUE FROM NEW MARKET ADS.

AND THEN THIS CHART SHOWS 2.4% OF ADDITIONAL REVENUE ON AVERAGE YEAR OVER YEAR, DRIVEN BY THE SALES TAX PRIMARILY.

SO IF YOU REMEMBER, IN CONTRAST, OUR EXPENDITURES WERE GROWING BY 3.2% PER ANNUM ON AVERAGE.

IF OUR REVENUES ARE 2.4, THAT THAT CAN CREATE A PROBLEM AS DISPLAYED ON THE NEXT SLIDE.

[00:20:08]

AND SO YOU'LL SEE THE BLUE LINE ON THE LEFT CHART.

YOUR TOTAL REVENUES ARE FORECASTED USING A NO NEW REVENUE RATE TO BE BELOW YOUR TOTAL APPROPRIATIONS.

THAT COULD WORK IN 2026 COULD WORK IN 27. BUT BY 28 YOU WOULD BE BELOW YOUR TARGETED DAYS OF OPERATION AND WORKING CAPITAL.

AND THEN, FRANKLY, BY 2031, WITH NO OTHER CHANGES, AND IF OUR MODEL WAS RIGHT FOR FIVE YEARS IN A ROW, YOU WOULD BE IN THE RED BY 14 DAYS WORKING CAPITAL IN 2031.

RIGHT? NOTHING ELSE THERE. IN CONTRAST, THE VOTER APPROVAL RATE, THIS IS UP TO 3.5% ANNUALLY.

PAST THAT POINT, YOU WOULD NEED THE VOTERS TO APPROVE THAT RATE.

AND SO WE'VE MODELED THIS AS NOT THE FAR HIGH BOUNDARY BUT AS ANOTHER D MARK IN PROPERTY TAX SETTING POLICY.

THIS IS THE VOTER APPROVAL RATE OF 3.5% ADDITIONAL REVENUE FROM EXISTING PROPERTIES.

YOU'LL SEE HERE THAT WE HAVE THE OTHER ASSUMPTIONS BAKED IN.

AND YOUR TOTAL CHANGE OVER YEAR ON AVERAGE IS 3.8%, RIGHT, AND AS WE KNOW THAT OVERCOMES 3.2.

SO THIS LINE IS MUCH CLOSER. YOU SEE THE THE SCALE ACTUALLY DOESN'T SHOW A LOT OF VARIATION THERE, BUT THE TOTAL REVENUES AND TOTAL APPROPRIATIONS, WE ALLOW FOR THAT TO DIP SLIGHTLY, BUT THEN IT GROWS BACK AND GETS BACK ON BALANCE.

THAT'S EASIER TO SEE IN YOUR DAYS WORKING CAPITAL CHART, WHICH BY THE SKIN OF OUR TEETH IN 29, WE WOULD HIT THE 60 DAY WORKING CAPITAL TARGET, AND THEN WE WOULD THEN START TO BOUNCE UP AND BACK INTO THE GOOD ABOVE TARGET AGAIN WITH THE VOTER APPROVAL RATE. NOTABLY THIS DOES NOT USE THAT CONTINGENT PORTION OF SALES TAX, RIGHT? SO IT'S VERY IMPORTANT TO NOTE THE ASSUMPTIONS THAT ARE BAKED INTO THIS.

WITH THAT SAID, RIGHT, WE KNOW THAT RATES FOR ANY GIVEN YEAR COULD BE BETWEEN THE NO NEW REVENUE AND VOTER APPROVAL RATE AND YOU AS A COUNCIL, AND ULTIMATELY YOUR VOTERS COULD APPROVE A RATE DIFFERENT THAN THAT RANGE. BUT WITHIN THAT RANGE THAT WE'VE PRESENTED, IT CAN WORK. BUT IF YOU DO SOMETHING LESS THAN VOTER APPROVAL AND THE REST OF THE ASSUMPTIONS ARE TRUE, IT WILL REQUIRE YOU TO RELY ON THAT CONTINGENT SALES TAX PORTION.

NOT 100% OF IT, BUT CERTAINLY MORE OF IT THAN YOU ARE TODAY.

WHEREAS KAREN SHOWED SOME TRANSFERS BASED ON A WINDFALL.

THOSE IN THE FUTURE WOULD BE HARDER TO DO BECAUSE YOU WOULD NEED TO USE THAT FOR ONGOING OPERATIONS.

RIGHT? A COUPLE CAVEATS. BASICALLY THE ACTUAL RATES WILL DIFFER.

THIS IS DONE ON A PRETTY HIGH LEVEL ANALYSIS RELATIVE TO THE VALUES.

AND THERE ARE A LOT OF ASSUMPTIONS WE'VE GONE THROUGH. JUST A TIP OF THE ICEBERG ON HOW MANY ASSUMPTIONS THERE ARE IN THIS MODEL, BUT WE'VE TRIED TO SHARE THOSE THAT ARE MOST IMPORTANT.

AND THEN AS ALWAYS, WE'RE SUBJECT TO LEGISLATIVE ACTION RELATIVE TO TAX POLICY, SALES TAX FRANCHISE AND EVERYTHING ELSE THE CITY DOES TO GENERATE REVENUE.

BUT WITH TODAY'S ASSUMPTIONS, THAT IS THE STORY WE HAVE TO SHARE.

LOVE TO ANSWER ANY QUESTIONS YOU MAY HAVE. AND THANK YOU FOR YOUR TIME. MAYOR PRO TEM.

HEY, KAREN, SO I UNDERSTAND THE ASSUMPTION YOU MADE ON THE SALES TAX.

SO DID IT TAKE INTO CONSIDERATION OF THE THE CHANGES THAT'S GOING TO HAPPEN WITH REGARD TO THE, THE DARTS? NO, WE, NO. WE DO NOT, THAT THAT WILL BE A TOTAL SEPARATE FUND.

IT WILL NOT IMPACT THE GENERAL FUND AS FAR AS I KNOW.

MARK MAY WANT TO SAY CHIME IN ON THAT, BUT NO, IT DOESN'T HAVE ANYTHING TO DO WITH WHAT'S GOING ON WITH THE DART.

BUT THAT MONEY WOULD AUTOMATICALLY GO INTO TRANSPORTATION ROADS.

THAT'S CORRECT. AND TO YEAH, OUR CIP OUR CAPITAL IMPROVEMENT PROGRAM.

YES, YES. SO IT'S NOT IT DOESN'T AFFECT ANY OF THE ASSUMPTIONS.

OKAY. NO, NOT AT ALL. WE'LL BRING BACK SOME DECISION POINTS FOR COUNCIL AS PART OF THE BUDGET PROCESS FOR THE THE FOCUS AND UTILIZATION OF THOSE ARPA FUNDS.

COUNCIL MEMBER LAVINE. THANK YOU, KAREN AND CONSULTANTS [LAUGHS].

THIS IS REALLY, REALLY HELPFUL. WILL, WHAT WE EXPECT TO BE DISCUSSED IN FISCAL YEAR 97 WITH THE STATE LEGISLATURE POTENTIALLY LOWERING THE VOTER APPROVAL RATE? WILL THAT HAVE ANY IMPACT ON THESE NUMBERS? OH, YES.

AND IN FACT, WE HAVE THEM BASICALLY ON CALL RIGHT AFTER WE'RE FINISHED DOING ALL THIS WITH Y'ALL.

WE HAVE THEM WORKING ON A NUMBER OF MODELS TO GO.

YOU'RE REALLY WHEN THEY TALK ABOUT THE 0%, THAT'S BASICALLY YOUR NO NEW REVENUE RATE.

[00:25:03]

WE'RE GOING TO HAVE THEM RUN AS A MODEL WITH 1%.

WAS IT 1%, 2% AND 2.5%. LOWERING THAT DOWN. BUT YES, THAT WILL HAVE A TREMENDOUS IMPACT ON THIS.

ALSO, THEY WERE TALKING ABOUT SOME CARVE OUTS FOR PUBLIC SAFETY.

I DON'T KNOW WHAT THAT LOOKS LIKE YET, BUT WE HAVE THEM ON CONTRACT THAT WE CAN HAVE ANY KIND OF SCENARIOS RAN AS THEY'RE COMING OUT OF THE LEGISLATURE.

WE ALSO ARE WAITING ON SOME INFORMATION FROM THE CENTRAL APPRAISAL DISTRICT.

YOU KNOW, THEY'RE TALKING ABOUT WE'VE GOT THE TAX FREEZE AT 65.

WE ALSO OFFER A $40,000 EXEMPTION ON THE SENIORS.

THEY'RE TALKING ABOUT LOWERING SOME OF THOSE DOWN TO 55%.

I HAVE INFORMATION I'M WAITING ON FROM THE CENTRAL APPRAISAL DISTRICT.

SO YOU WILL HEAR MORE ABOUT THIS INFORMATION AS WE PROGRESS THROUGH ALL THIS.

YES. THANK YOU, MAYOR AND COUNCIL. THIS IS REALLY AS KAREN MENTIONED, THE START OF OUR BUDGET PROCESS AND THIS IS GIVING US A SNAPSHOT MID-YEAR.

LOOKING OUT FIVE YEARS, THERE'S STILL A LOT OF WORK TO BE DONE WITH THE DEPARTMENTS.

BEFORE WE BRING THINGS BACK. WE WILL HAVE SOME INDIVIDUAL MEETINGS WITH YOU ALL AS WELL, MAKING SURE WE UNDERSTAND YOUR PRIORITIES.

BUT WE WANTED TO GIVE YOU A SNAPSHOT OF KIND OF WHAT THE FISCAL CONDITION OF THE CITY LOOKS LIKE AS IT STANDS RIGHT NOW AND PREPARE YOU FOR SOME OF THOSE BUDGET DISCUSSIONS.

BUT WE WILL BE COMING BACK PERIODICALLY OVER THE NEXT SEVERAL MONTHS UNTIL WE GET FULL GEAR AT THE END OF JANUARY OR EXCUSE ME, END OF JULY, WHERE WE START MEETING VERY FREQUENTLY, AS YOU EXPERIENCED LAST YEAR.

BUT WE FELT LIKE ACCORDING TO OUR POLICIES AND OUR PRACTICES, BRINGING YOU THIS UPDATE NOW TO KIND OF LAY OUT WHERE WE'RE STARTING OUR WORK FROM IS IMPORTANT SO THAT YOU UNDERSTAND THE ENVIRONMENT WILL BE WILL BE WORKING IN.

AND WHILE I HAVE YOU ALL, I WANTED TO JUST QUICKLY GO THROUGH.

SO SORRY. DID YOU HAVE ANOTHER QUESTION? JUST A REALLY PROBABLY A VERY STUPID QUESTION, BUT IT LOOKS LIKE FROM, FROM THE, FROM THE, THE, THE, THE ASSUMPTIONS THAT WE ARE ASSUMING THAT OUR PROPERTY VALUE IS GOING TO GO UP, EVEN THOUGH IT'S A LITTLE BIT. THAT'S CORRECT.

SO AT THIS POINT THOUGH WHAT IF THE PROPERTY VALUE REMAINS FLAT OR GOES DOWN? DO WE, DO WE BUILD IN SOME TYPE OF BUFFER OR SAFETY NET TO DEAL WITH THAT PART OF IT? SO MAYOR PRO TEM THAT'S A GREAT QUESTION RIGHT NOW.

AS YOU HEARD, IT'S REALLY FLAT IS WHAT THEY'RE PROJECTING RIGHT NOW FOR EXISTING PROPERTY.

BUT WE DO KNOW THAT WE HAVE SOME NEW PROPERTY THAT'S GOING TO COME ON LINE OVER AND ABOVE THAT.

BUT PROJECTING IT AT FLAT RIGHT NOW IS IS A SIGNIFICANT PIECE OF THAT.

YOU SAW THOSE OTHER INFLATIONARY ASPECTS TO EXPENDITURES THAT WE HAVE BUILT IN.

SOME OF THOSE THINGS WILL GET MORE SCRUTINY AND THEY WILL BE FINE TUNED, IF YOU WILL, BETWEEN NOW AND WHAT WE PRESENT IN JULY.

YEAH. AND WE ARE SUPPOSED TO APRIL 7TH AND THEN APRIL 21ST.

APRIL 7TH. COLLIN CENTRAL APPRAISAL DISTRICT.

AND THEY'RE GOING TO HAND US ALL KINDS OF INFORMATION.

AND THEN DENTON IS APRIL 21ST. THEY'RE GOING TO HAND US ALL KINDS OF INFORMATION.

AND THEN IN MAY, THEY'LL START SUBMITTING THE ACTUAL ROLE TO US ON A WEEKLY BASIS.

SO THIS IS JUST THE START OF THE PROCESS AND IT'S WHERE WE KNOW TODAY.

SO IT WILL CHANGE. OKAY. LET'S RUN US THROUGH THE WATER AND SEWER SUMMARY.

OKAY. JUST REAL QUICK. WE HAVE EXCEEDED YOUR TIME.

OH, I'M A YOU'RE FINE. OH, GOOD. WE WANT TO HEAR ABOUT WATER AND SEWER.

I JUST WANT TO GIVE YOU ALL A HEADS UP. UNDER THE FISCAL ROADMAP PROJECT, WE CHANGED THE FOR WATER AND SEWER.

WE'RE OUR GOAL IS 90 DAYS. IF YOU LOOK ON THIS CHART, WE ARE ABOVE 90 DAYS ALL FIVE YEARS, WHICH IS WONDERFUL. ALSO ON WATER AND SEWER, WE WILL BE RECEIVING NEW NORTH TEXAS MUNICIPAL WATER DISTRICT INFORMATION IN APRIL, THE END OF APRIL, 1ST OF MAY. SUSTAINABILITY, ENVIRONMENTAL WASTE.

RIGHT NOW WE ARE WORKING ON A WRITE MODEL, BUT IF WE WERE TO USE THE SAME PROJECTIONS THAT WE CURRENTLY HAVE IN OUR FINANCIAL FORECASTS, THEY DO NOT GO INTO THE RED TILL 3031. THAT WILL BE TAKEN CARE OF WITH THE RATES THAT ARE GOING TO COME OUT FROM THE RATE STUDY.

MUNICIPAL DRAINAGE, THE CITY COUNCIL, WE JUST DID A RATE INCREASE ON MUNICIPAL DRAINAGE.

IT IS TO BE A THREE YEAR RATE WHICH WORKS OUT ON THIS BECAUSE IN THE FOURTH YEAR WE'D BE GOING INTO THE RED.

SO WE WILL BE WORKING ON ALL THAT AND THAT'S ALL WE HAVE.

ALL RIGHT. THANK YOU GUYS. APPRECIATE IT. THANKS, KAREN.

YEAH. OUR NEXT ITEM IS THE DEPARTMENTAL OVERVIEW OF PUBLIC WORKS.

[00:30:04]

ABBY OWENS. GOOD EVENING. I'LL GET THAT RIGHT THIS TIME.

I ALSO HAVE ANDREA PARK WITH ME. SHE'S ONE OF OUR ASSISTANT DIRECTORS IN PUBLIC WORKS. SHE'LL SHARE A LITTLE BIT LATER. WE'VE DECIDED TO PRESENT PUBLIC WORKS IN TWO DIFFERENT PRESENTATIONS. SO WE'LL COME BACK IN MAY JUST TO KIND OF HIGHLIGHT.

THERE'S A LOT THAT HAPPENS AND I DIDN'T WANT IT TO FEEL VERY RUSHED.

SO KIND OF THE WAY I DESCRIBE PUBLIC WORKS IS WE'RE KIND OF THE BACKBONE OF THE DIFFERENT ESSENTIAL SERVICES OUTSIDE OF POLICE AND FIRE, BUT WE MAKE SURE THAT THERE'S CLEAN WATER THAT'S SAFE TO DRINK. ALSO, ON TOP OF THAT WASTEWATER, WE TAKE CARE OF THE MAINTENANCE OF THE INFRASTRUCTURE FOR DRAINAGE AND THEN ENSURE SAFE TRAVEL THROUGHOUT THE CITY, INCLUDING ROADS AND SIDEWALKS AND STREET SIGNS AND TRAFFIC SIGNALS.

AND THEN SO THIS EVENING, WE WERE JUST GOING TO COVER PART OF OUR OPERATION, WHICH IS OUR SOLID WASTE SUSTAINABILITY AND THEN FLEET AND COMPOST.

SO ON TOP OF OUR NORMAL DAY TO DAY OPERATIONS AND MAINTENANCE, WE'RE WERE ALSO THE EMERGENCY RESPONSE GROUP.

AND SO WE'LL SHOW UP FOR WINDSTORMS OR SEVERE WEATHER EVENTS, TREE CALLS, BUT THEN ALSO PREPARATIONS FOR WINTER WEATHER EVENTS, INCLUDING BRINE AND THEN SALT AND SANDING OF OUR STREETS.

FROM AN OPERATIONAL PERSPECTIVE, WE HAVE ABOUT 364 EMPLOYEES, WE'RE SPLIT INTO THREE DIFFERENT GROUPS.

SO ANDREA IS OVER OUR BUSINESS AND ASSET MANAGEMENT TEAM FLEET, SOLID WASTE AND THEN COMPOST OPERATIONS.

AND THEN WE HAVE OUR, DREW ZAESKE, WHO IS OUR CIP MANAGER, AND THAT'S WHO HELPS PLAN ALL OF THE PROJECTS THAT WE'LL DO FOR ROAD REPAIRS AND MAINTENANCE, BUT THEN ALSO SIDEWALKS AND SOME OF OUR SMALLER WATER AND SEWER PROJECTS AS WELL.

AND THEN THE OTHER HALF OF OUR OPERATION IS UNDER TOMMY MAPP AS AN ASSISTANT DIRECTOR, AND THAT'S OUR FIELD OPERATIONS.

SO THAT'S GOING TO BE ALL OF THE DAY TO DAY MAINTENANCE FOR WATER AND SEWER AND STREETS AND DRAINAGE AND TRAFFIC.

FROM A BUDGET PERSPECTIVE, THIS IS OUR APPROVED OPERATING BUDGET FOR THIS CURRENT FISCAL YEAR.

WATER AND SEWER IS JUST UNDER 185 MILLION. REMEMBER, MOST OF THAT IS JUST FOR THE PURCHASE AND TREATMENT OF WATER AND WASTEWATER.

ENVIRONMENTAL WASTE SERVICES IS JUST UNDER 34 MILLION, AND AGAIN, ABOUT 9 MILLION OF THAT GOES TO THE DISTRICT FOR OUR SOLID WASTE PROCESSING.

AND THEN FLEET IS 12 MILLION. BUT THERE'S OBVIOUSLY ADDITIONAL FUNDING THAT'S SET ASIDE TO ACTUALLY MAINTAIN THE FLEET AND REPLACE THEM.

AND THEN STREETS AND DRAINAGE, THE OTHER TWO FUNDS THAT PUBLIC WORKS HAS. SO WITH THAT, I WAS GOING TO HAVE ANDREA COVER THE REST OF HER OPERATION.

OKAY. WELL, AS ABBY MENTIONED, MY NAME IS ANDREA PARK.

I'M THE ASSISTANT DIRECTOR OF PUBLIC WORKS OVER COMMUNITY SERVICES.

THIS IS A GROUP THAT I AM INCREDIBLY PROUD TO WORK WITH.

AND I THINK THEY DO A FABULOUS JOB EVERY DAY SUPPORTING THE CITY.

SO FIRST, THIS IS JUST GOING TO BE A HIGH LEVEL OVERVIEW OF OUR GROUP.

SO FIRST, I'M JUST GOING TO HIT ON OUR ADMINISTRATION AND ASSET MANAGEMENT GROUP.

THIS IS OUR ADMINISTRATIVE STAFF THAT TAKES IN THE CALLS AND TALKS TO THE CITIZENS EVERY SINGLE DAY.

AND THEN OUR ASSET MANAGEMENT TEAM, THEY KEEP ALL OF OUR DATA STORED FOR US IN OUR ASSET MANAGEMENT SYSTEM.

THEY KEEP ALL OF OUR EQUIPMENT UP AND RUNNING FOR US.

AS YOU CAN SEE, THE NUMBERS ON THE SCREEN, THEY HANDLE A LOT.

AND THEN THEY ARE ALSO REALLY CRITICAL WHENEVER WE DO HAVE AN EMERGENCY RESPONSE EVENT HELPING US DO THINGS LIKE TRACKING OUR SAND OPERATIONS AND STUFF LIKE THAT.

NEXT IS OUR FLEET SERVICES GROUP. SO THIS GROUP IS OUTSTANDING IN WHAT THEY DO.

AND THEY ARE VERY SPECIALIZED IN TECHNICAL EXPERTS IN THEIR FIELD.

SO WE HAVE APPROXIMATELY 2500 PIECES OF EQUIPMENT THAT THEY ARE RESPONSIBLE FOR MAINTAINING.

AND THIS IS DONE WITH 29 TECHNICIANS AND AN OFFICE STAFF OF NINE.

SO THAT IS A LOT OF EQUIPMENT TO KEEP UP WITH.

WE DO DO MOST OF THE WORK ON THESE VEHICLES IN-HOUSE.

WE DO OUTSOURCE SOME OF IT DEPENDING ON THE LEVEL OF REPAIR THAT NEEDS TO BE MADE, OR IF IT'S TIED INTO A WARRANTY ISSUE, WE WOULD SEND THAT OUT. WE ALSO MANAGE THE FUELING SYSTEM WITH THIS GROUP.

AND JUST A SIDE NOTE, THE HIGH POINT FUELING STATION IS SOMETHING I KNOW WE'VE BROUGHT TO YOU ALL AND THAT IS CURRENTLY UNDER DESIGN.

AND HOPEFULLY THAT WILL BE ONLINE AT THE BEGINNING OF NEXT YEAR.

THIS GROUP DOES OPERATE A DAY SHIFT AND A NIGHT SHIFT.

THE NIGHT SHIFT IS SOLELY RESPONSIBLE FOR WORKING ON THE TRASH TRUCKS SO THAT THE FOLLOWING MORNING THEY ARE REPAIRED, MAINTAINED AND READY TO GO. IF YOU'RE CURIOUS, THIS IS JUST KIND OF A SNAPSHOT OF THE DIFFERENT TYPES OF THINGS THAT ARE IN THE FLEET.

IT'S EVERYTHING FROM THE COMMAND VEHICLE FOR PD, BACKHOES, TRASH TRUCKS, YOUR REGULAR WHITE FLEET THAT DRIVES AROUND FOR SUPERVISOR TRUCKS OR PROPERTY STANDARDS, ANYTHING LIKE THAT. BASICALLY, IF IT HAS MOTORS AND WHEELS, WE TAKE CARE OF IT.

ABBY KIND OF ALLUDED TO THIS WHEN SHE WAS TALKING ABOUT THE DIFFERENT BUDGET PIECES ON ONE OF THE EARLIER SLIDES.

SO WE OBVIOUSLY BRING A LOT OF EQUIPMENT TO YOU ALL TO APPROVE US TO PURCHASE THROUGHOUT THE YEAR.

AND JUST TO KIND OF GIVE A LITTLE BIT OF INSIGHT ON HOW THAT LOOKS, WE DO HAVE SOMETHING CALLED THE EQUIPMENT REPLACEMENT FUND, WHICH IS DEDICATED FUNDING FOR THE REPLACEMENT AND PURCHASE OF CITY VEHICLES AND EQUIPMENT.

[00:35:02]

AND THIS WILL APPLY TO ANYTHING OVER 5000, A VALUE OF $5,000.

IT ONLY INCLUDES ROLLING STOCK, SO IT WOULDN'T INCLUDE SOMETHING LIKE THE BOTTOM RIGHT OF THE SCREEN, THE PUMPS, FOR EXAMPLE. THIS DOES COVER FIRE TRUCKS, BACKHOES AGAIN, ANYTHING THAT IS ROLLING STOCK.

AND LIKE IT SAYS THAT THIS IS JUST TO KIND OF SUPPORT A LIFE CYCLE REPLACEMENT PROCESS THAT MAKES SENSE.

WE'RE NOT BEING REACTIVE AND WE'RE ALSO NOT BRINGING 25 DIFFERENT MAJOR PURCHASES AT ONE TIME AT THE BEGINNING OF THE YEAR.

TALKING ABOUT REPLACEMENT, WHEN IT COMES TO MAKING REPLACEMENT DECISIONS, IT'S NOT JUST WHAT DO WE FEEL LIKE BUYING TODAY? THERE IS A METHODOLOGY BEHIND IT. SO WE DO USE A SYSTEM THAT IS SCORING AND IT'S THE THREE THINGS THAT ARE LISTED HERE.

SO LIFE EXPECTANCY, MAINTENANCE COSTS AND MILEAGE.

SO IT IS A POINT SYSTEM. SO WE MIGHT HAVE SOMETHING THAT IS 20 YEARS OLD BUT ONLY HAS VERY LOW MILEAGE AND THE MAINTENANCE IS ALMOST NON-EXISTENT.

WE WOULD NOT REPLACE IT JUST BECAUSE IT'S OLD.

IT HAS TO MEET A NUMBER, A CERTAIN NUMBER OF POINTS ON THE SYSTEM.

THE THRESHOLDS VARY BY DIFFERENT EQUIPMENT. SOME THINGS WILL LAST LONGER THAN OTHERS. SOME THINGS WILL GET UTILIZED MORE AND WE KNOW THAT.

SO WE TAKE THAT INTO ACCOUNT UPFRONT. AND AGAIN, THE GOAL IS JUST TO BE REPLACING EQUIPMENT, OPTIMAL POINT IN LIFE CYCLE, BALANCING THE RISK, THE COST AND THE RESALE VALUE.

OKAY. NEXT IS ENVIRONMENTAL WASTE SERVICES. I THINK THIS IS ONE THAT MOST OF YOU ARE ALL VERY FAMILIAR WITH BECAUSE THEY SHOW UP AT YOUR HOUSE MULTIPLE TIMES A MONTH ALL THROUGHOUT THE YEAR. AND THE RAIN, THE SNOW, THE SLEET MAY BE A LITTLE DELAYED AND SLEET AND ICE, BUT WE WILL GET THERE. BUT WE PROVIDE ALL OF YOUR WASTE SERVICES, SO TRASH, BULKY WASTE, RECYCLING, HOUSEHOLD CHEMICAL COLLECTION. AND JUST TO PUT IT INTO PERSPECTIVE, WE HAVE 87,000 HOMES.

WE SHOW UP TO ALL OF YOU. TWICE A WEEK FOR YOUR RECYCLING OR TRASH RECYCLING IS EVERY OTHER WEEK.

SO I DIDN'T MEAN TO SAY TWICE A WEEK FOR TRASH.

IT'S EVERY WEEK FOR TRASH. BUT A LOT OF WORK GOES INTO IT.

THIS GROUP ALSO IS OVER OUR COMMERCIAL WASTE AND RECYCLING CONTRACT, WHICH ALSO INCLUDES OUR GREEN BUSINESS PROGRAM.

SO HOPEFULLY YOU'RE FAMILIAR WITH THAT. THERE'S SOME INFORMATION HERE IF YOU ARE NOT. LAST WE HAVE OUR TEXAS PURE PRODUCTS.

HOPEFULLY YOU'RE FAMILIAR WITH THIS AS WELL. SO THIS IS OUR YARD DEBRIS DIVERSION PROGRAM.

WE PARTNER WITH PLANO, ALLEN, FRISCO MCKINNEY AND RICHARDSON.

AND IT'S ALSO IN PARTNERSHIP WITH THE WATER DISTRICT.

SO WE OPERATE FROM CUSTER ROAD TRANSFER STATION AND THE 121 REGIONAL LANDFILL IN MELISSA AND THAT IS PLANO STAFF.

SO BASICALLY WE'RE JUST TAKING IN ALL OF YOUR YARD DEBRIS.

WE'RE KEEPING IT OUT OF THE LANDFILL AT ABOUT 50,000 TONS A YEAR.

WE TURNED IT BACK INTO MULCH, SOIL AND OTHER THINGS.

THAT GOES BACK OUT FOR SALE AND MAKES BEAUTIFUL FRUITS AND VEGETABLES.

IF YOU HAVE NEVER SEEN OUR OPERATIONS, THEY ARE MASSIVE.

JUST TO GIVE YOU AN AERIAL OVERVIEW, IF YOU'VE NEVER SEEN THEM, THE RIGHT IS THE CUSTER TRANSFER STATION WHERE EVERYTHING COMES IN.

AND ON THE RIGHT IS THE MELISSA COMPOSTING FACILITY WHERE EVERYTHING TURNS INTO SOMETHING ELSE TO GO BACK OUT TO THE COMMUNITY.

AND THAT IS THE OVERVIEW OF THE COMMUNITY SERVICES DIVISION.

ABBY AND I CAN ANSWER ANY QUESTIONS. THANK YOU VERY MUCH.

DEPUTY MAYOR PRO TEM. YES. THANK YOU, MR. MAYOR.

FIRST OF ALL, I WANT TO SAY THANKS TO ABBY AND YOU FOR THE GREAT WORK YOU'RE DOING.

TOO OFTEN WE DON'T SEE ANYTHING ABOUT PUBLIC WORKS UNLESS SOMETHING'S BROKEN.

AND, YOU KNOW, WE ALWAYS PRAISE THE FIRST RESPONDERS, FIRE AND RESCUE 911.

THE POLICE DEPARTMENT, WE ALWAYS PRAISE THE PARKS AND REC BECAUSE THAT'S ALWAYS THE FUN THING TO DO.

BUT ALL YOU HAVE TO DO IS LOOK AT OUR NEIGHBORS TO THE SOUTH AND SEE WHAT HAPPENS WHEN THEY HAVE DELAYED MAINTENANCE.

AND WITH THE CITY MANAGER AND OUR DEPUTY MANAGERS BEING AGGRESSIVE ON THAT, YES, WE HEAR COMPLAINTS ABOUT ROAD CONSTRUCTION.

WE ALSO HEAR ABOUT COMPLAINTS ABOUT BAD ROADS.

BUT GUESS WHAT? WE'RE ADDRESSING THEM AND IT TAKES TIME.

AND WITH OUR NEW OVERLAYS, WE'RE HOPING TO MAKE SURE WE DON'T HAVE TO DO A WHOLE LOT OF THAT ROAD CONSTRUCTION OFTEN.

BUT AGAIN, NOTHING BUT ACCOLADES OF PRAISE TO THE DPW TEAM, THE ENTIRE TEAM, THE GUYS EVEN CUTTING THE GRASS AND DOING THE IRRIGATION AND ALL THAT WORK THAT'S GOING ON. I JUST HAVE TO SAY KUDOS TO YOU AND THANK YOU FOR A JOB WELL DONE.

THANK YOU. WE APPRECIATE THAT. AND WE'LL MAKE SURE OUR STAFF IS AWARE.

MAYOR AND COUNCIL. THESE OVERVIEWS REALLY ARE DESIGNED TO TO GIVE YOU CONTEXT INTO ALL THE SERVICES THAT GO ON IN THE CITY.

AND ONE OF THE ONES I'LL JUST POINT OUT REAL QUICK THAT ANDREA IS OVER IS OUR COMPOST PROGRAM.

WE'VE HAD THAT COMPOST PROGRAM FOR WHAT, 25 YEARS, SOMETHING OF THAT NATURE.

AND IT'S ONLY BEEN UNDER HER LEADERSHIP OVER THE LAST 2 TO 3 YEARS BETWEEN HER AND ABBY, THAT WE'VE ACTUALLY SEEN THAT GO TO NOT ONLY COST FULL COST RECOVERY,

[00:40:04]

BUT ACTUALLY GENERATING A TINY BIT OF REVENUE TO GO BACK INTO THE PROGRAM.

SO IT'S BEEN ONE THAT WE'VE WORKED VERY HARD WITH OUR NEIGHBORS TO, TO MAKE SUCCESSFUL, BUT THEIR ATTENTION TO DETAIL AND THEIR PROFESSIONALISM AT ACTUALLY GOING THROUGH AND MAKING SURE IT'S WELL MANAGED, WELL RUN HAS TURNED THAT PROGRAM INTO SOMETHING THAT IS AN ASSET FOR THE CITY.

SO JUST WANT TO TELL THEM THANK YOU. THANK YOU VERY MUCH.

APPRECIATE IT. MAYOR. WE DO HAVE THAT ONE SPEAKER ON THIS ITEM, SO I'LL CALL THEIR NAME.

I DON'T THINK THEY'RE HERE. ALVIN NELSON.

OKAY. NEXT ITEM IS CONSENT AND REGULAR AGENDAS.

WOULD COUNCIL MEMBER LIKE TO REMOVE ANY ITEM ON THE CONSENT? I DO THINK ITEM C, ITEM C, ITEM A AND ITEM I HAVE BEEN REMOVED BY CITIZENS.

A, C, AND I. OKAY. ALL RIGHT.

OKAY. THANK YOU. ANY ITEMS FOR DISCUSSION OR ACTION ON FUTURE AGENDAS? OKAY. WE WILL TAKE A RECESS AND RETURN AT 7:00.

THANK YOU.

* This transcript was compiled from uncorrected Closed Captioning.