[Call to Order]
[00:00:04]
I NOW DECLARE THE PLANO CITY COUNCIL IS CONVENED IN OPEN SESSION, THAT ALL COUNCIL MEMBERS ARE PRESENT, WITH THE EXCEPTION OF COUNCIL MEMBER TWO. OUR FIRST ITEM ON THE AGENDA IS OVERVIEW OF THE 2526 BUDGET AND COMMUNITY INVESTMENT
[I. Overview of 2025-26 Budget & Community Investment Program (CIP)]
[II. Recommended 2026-27 Budget & Community Investment Program (CIP)]
[III. Budget Presentation]
PROGRAM. MARK. MAYOR AND COUNCIL. WOW, THAT WAS REALLY LOUD.FIRST OF ALL, HAPPY. JEEZ. YOU'RE GOOD. OKAY, IT'S COMING BACK PRETTY, PRETTY HARSH.
SO I'M GOING TO TONE IT DOWN JUST A LITTLE BIT.
WELL, HAPPY BUDGET SEASON. WE'RE NOW FOCUSED ON THE BUDGET AND THE CIP FOR FISCAL YEAR 2627.
THIS BUDGET THAT I'M RECOMMENDING MAINTAINS EXCELLENT MUNICIPAL SERVICES, INVESTS IN CRITICAL INFRASTRUCTURE, AND FUNDS BOTH ORGANIZATIONAL AND COMMUNITY PRIORITIES.
THIS YEAR, OUR BUDGET DISCUSSIONS WE HAD AS A TEAM STARTED IN MAY, AND IT WAS THE BEST EXAMPLE OF STAFF ENGAGEMENT AND COLLABORATION I'VE SEEN IN MY 27 YEARS WITH THE CITY. IT WAS A PHENOMENAL EXPERIENCE WITH OUR EXECUTIVE TEAM, WHO ARE A STRONG EXAMPLE OF OUR DEDICATED AND TALENTED MEMBERS OF TEAM PLANO.
SO I WANT TO EXPRESS MY APPRECIATION FOR ALL THE WORK THAT THEY PUT IN, AS WELL AS OUR BUDGET AND FINANCE TEAMS THAT HAVE WORKED DILIGENTLY TO GET THIS BUDGET PUT TOGETHER. LAST YEAR, THE CITY CONTINUED ON OUR IMPLEMENTATION OF OUR FISCAL ROADMAP.
AND FOR US, WE WANT TO CONTINUE TO TAKE ACTIONS TOWARDS REDUCING COSTS, REVISING POLICIES AND UPDATING OUR BUDGET PRACTICES TO MAKE SURE THAT WE ARE ON A SOLID FINANCIAL FOUNDATION AND ENSURE PLANO STAYS FISCALLY RESILIENT INTO THE FUTURE.
AS A REMINDER, THE CITY IS A SERVICE ORGANIZATION.
WE FUND PROGRAMS AND SERVICES, AND SO WE ARE VERY FOCUSED ON STAFF, BUT WE ARE ALSO SUBJECT TO THE SAME ELEMENTS AS OUR BUSINESS COMMUNITY, INCLUDING LABOR SCARCITY, WAGE ESCALATION, AND INFLATION.
THIS YEAR, AS AN EXAMPLE, ON THE INFLATIONARY SIDE OF THINGS, OUR HEALTH PLAN, IF YOU TOOK THE EXACT SAME HEALTH PLAN WITH THE EXACT SAME CLAIMS THIS YEAR VERSUS LAST YEAR, IS AN 8% INCREASE, A SIGNIFICANT INCREASE OVER AND ABOVE WHAT WE'RE SEEING FOR INFLATION IN OTHER AREAS.
SO THE CITY NEEDS TO CONTINUE TO ADAPT TO HOW WE'RE ACTUALLY RESPONDING TO THAT.
PLANO HAS ALSO BEEN INNOVATIVE. WE'VE ADOPTED POLICIES LIKE A 2472 SHIFT STRUCTURE FOR PLANO FIRE RESCUE, AND WE'RE WORKING ON THE LATERAL HIRE POLICY FOR PLANO POLICE.
THOSE BOTH WILL KEEP PLANO COMPETITIVE FOR TOP TALENT INTO THE FUTURE.
AND WHILE IT'S A PRIORITY TO ATTRACT AND RETAIN TOP TALENT, REVENUE GROWTH MUST MATCH INCREASED COSTS FOR PROGRAMS AND SERVICES, AND THE CITY HAS TO MATCH THAT YEAR OVER YEAR, THE 2627 RECOMMENDED BUDGET MAINTAINS THE CURRENT TAX RATE TO SUPPORT THE INVESTMENT IN INFRASTRUCTURE MAINTENANCE, REPAIR AND REPLACEMENT THAT WAS APPROVED BY THE VOTERS IN THE 2025 BOND REFERENDUM.
BUT I NEED TO MAKE SURE THIS COUNCIL IS AWARE THAT FUTURE CAPITAL EXPENDITURES ARE GOING TO REQUIRE ACTION IN FUTURE YEARS, AND WE WILL TALK ABOUT THAT IN A LITTLE BIT WITH OUR CIP PRESENTATION.
THE FIVE GOALS THAT WE HAVE HAD FOR OUR BUDGET ARE THE SAME.
FIVE WE'VE HAD SINCE I'VE BEEN CITY MANAGER. FIRST IS MAINTAINING OUR FINANCIAL POLICIES, SO MAINTAINING OUR FUND BALANCES AND MAKING SURE THAT WE RETAIN OUR TRIPLE-A BOND RATING ARE PARAMOUNT TO THE BEST INTEREST, LONG TERM INTEREST OF THE CITY.
ADDITIONALLY, FOR PERSONNEL, THEY ARE OUR GREATEST ASSETS.
THAT'S HOW WE DELIVER OUR PROGRAMS AND SERVICES.
THIS YEAR, WE HAVE A 3% ACROSS THE BOARD PAY INCREASE.
AND WE ALSO HAVE THE ADDITION OF TWO PERSONAL DAYS.
THOSE WILL BE AVAILABLE FOR FOLKS THAT ARE NOT CURRENTLY UNDER CONTRACT FOR MEET AND CONFER.
ADDITIONALLY, WE ARE ADDING 34 NEW POSITIONS, 22 FOR PLANO FIRE RESCUE AND TEN FOR PLANO POLICE, AS WELL AS ONE IN HUMAN RESOURCES AND ONE IN PARKS TO HELP ADDRESS SOME OF OUR CIP ELEMENTS.
OUR INFRASTRUCTURE. THIS YEAR, WE HAVE A $290 MILLION CAPITAL INVESTMENT PROGRAM OR COMMUNITY INVESTMENT PROGRAM, AND THAT WILL CONTINUE TO MAKE PROGRESS ON THE BOND AUTHORITY THAT OUR CITIZENS GRANTED US IN 2025.
THE ONLY ALTERNATIVE SERVICE THAT WE HAVE RIGHT NOW ARE THE ONLY SERVICE CHANGE THAT WE'RE REALLY LOOKING AT IS WE'RE NOT REDUCING OR CHANGING PROGRAMS OR SERVICES, BUT WE HAVE INTRODUCED VIA THIS YEAR, AS YOU ALL ARE AWARE, FOR ALTERNATE TRANSPORTATION, WE ARE LOOKING TO MOVE THAT UNDER OUR DART PROGRAM OF SERVICE SOMETIME THIS YEAR.
SO WE ARE LOOKING TO MAKE AN ADJUSTMENT IN THAT IN THAT ELEMENT.
[00:05:04]
SO WE ARE AT $590,296. BUT WE CONTINUE TO MAINTAIN ONE OF THE LOWEST TAX RATES OF OUR SURROUNDING CITIES.LAST BUT NOT LEAST AGAIN, THE BUDGET IS A TEAM PROJECT.
SO. KAREN RHONDES-WHITLEY, CASEY SCHRADER, JASON GREGORASH TREMENDOUS WORK THAT THEY'VE PUT IN.
AND I JUST WANTED TO THANK THEM FOR ALL THE WORK THEY'VE DONE.
AND WITH THAT, KAREN, IF YOU PLEASE LAY OUT THE BUDGET, I WOULD GREATLY APPRECIATE IT.
OKAY. KAREN RHONDES-WHITLEY, BUDGET DIRECTOR.
MARK JUST LAID OUT THAT WE'VE BEEN UNDER THE FIVE MAIN PRIORITIES SINCE HE STARTED AS CITY MANAGER, SO I WON'T GO THROUGH THAT. BUT YOUR 2627 COMBINED BUDGET RESOURCES ARE YOUR REVENUES TOTAL $988 MILLION. THE NUMBER ONE REVENUE SOURCE COMING IN IS FOR YOUR TAXES.
THIS INCLUDES PROPERTY TAXES AND SALES TAX. IT TOTALS ABOUT 41.8% OF THE OVERALL CHARGES FOR SERVICES IS YOUR SECOND LARGEST. THIS IS GOING TO BE YOUR WATER AND SEWER.
PARKS AND REC FEES. ALL THE DIFFERENT CHARGES THAT WE HAVE FOR SERVICES.
THAT SAFE GUARD, A FUND BALANCE FOR EACH OF OUR DIFFERENT FUNDS WE HAVE BEEN JUST GOING THROUGH YEAR TWO OR PHASE TWO OF THE FISCAL ROADMAP PROJECT WILL BE STARTING PHASE THREE, OCTOBER 1ST.
SO WE HAVE BEEN BUILDING THOSE UP. YOUR EXPENDITURES FOR THE TOTAL CITY IS $841 MILLION.
YOUR NUMBER ONE EXPENDITURES IS GOING TO BE WATER AND SEWER.
THAT IS FOLLOWED BY OUR PUBLIC SAFETY, WHICH EQUATES TO 214 MILLION.
AND THEN OUR THIRD ONE IS FOR GENERAL GOVERNMENT.
AND THAT TOTALS $135 MILLION. AS FAR AS THE GENERAL FUND OF THE EQUATION GOES, HALF OF OUR GENERAL FUND EXPENDITURES ARE FOR PUBLIC SAFETY AND HEALTH.
THEY TOTAL 49.2%, FOLLOWED BY THE SECOND ONE, WHICH IS NON-DEPARTMENTAL AND ON TRANSFERS.
WE ALSO TRANSFER IN MONEY TO KEEP UP OUR RISK MANAGEMENT FUND.
WE ALSO HAVE TO TRANSFER MONEY OVER FOR OUR TECHNOLOGY SERVICES UNIT.
THE THIRD LARGEST ONE ON HERE IS PARKS AND REC AT 8.6%.
NEXT, NOT NEXT MONDAY, BUT THE MONDAY AFTER. ON AUGUST 10TH, I'M GOING TO COME BACK WITH ALL KINDS OF DETAIL ON WHAT WAS RECEIVED FROM THE CERTIFIED VALUES. RIGHT NOW WE HAVE PROGRAMED INTO THE BUDGET A TAX RATE OF 43.7 $0.06.
WHAT WE HAVE HAD TO DO AND MARK JUST TALKED ABOUT THAT JUST A MINUTE AGO.
YOU HAVE TO PAY YOUR DEBT FIRST BEFORE YOU CAN ALLOCATE TO ANYTHING ELSE.
THIS YEAR, WE HAD TO MOVE ITS APPROXIMATELY $6 MILLION.
WE INCREASED THE DEBT RATE FROM 11.5 CENTS TO 12.4 CENTS.
ANYWAY, WE ARE GOING TO DISCUSS MORE ABOUT THIS HERE IN A MINUTE.
RIGHT NOW, I DID CALCULATE BASED ON THE INFORMATION I RECEIVED THE OTHER DAY.
LOOKS LIKE YOUR NO NEW REVENUE RATE, YOUR NO NEW REVENUE RATE IS BASICALLY THE RATE THAT YOU WOULD GET THE SAME AMOUNT OF PROPERTY TAX REVENUES AS LAST YEAR INTO THIS COMING UP YEAR, IT IS 43.3 $0.02.
SO YOU'RE NOT VERY FAR OFF FROM THAT REVENUE RATE AT THE 43.7 $0.06 YOUR VOTER APPROVAL RATE.
THE WAY THE CALCULATION IS, IT ALLOWS YOU TO PUT 3.5% MORE INTO YOUR OPERATIONS.
SO YOUR VOTER APPROVAL RATE NOW IS 45.8 $0.05, AND WE'RE WELL BELOW THAT.
[00:10:06]
SO WE ARE GOING TO HAVE MUCH MORE CONVERSATION REGARDING THIS ON AUGUST 10TH.ON AUGUST 10TH, YOU ALSO WILL NEED TO DECIDE ON A TAX RATE THAT HAS TO GO INTO THE NEWSPAPER THE NEXT DAY ON THAT TAX RATE THAT YOU DECIDE, WHATEVER IT IS, YOU CANNOT GO UP FROM THAT TAX RATE.
YOU CAN LOWER THE TAX RATE. SO WE WILL HAVE MORE DISCUSSIONS ABOUT THAT.
ON AUGUST 10TH. YOU ARE SCHEDULED TO ADOPT THE TAX RATE ON SEPTEMBER 14TH.
AS FAR AS THE MARKET, HOME VALUE MARKET JUST MENTIONED THIS.
WE ARE DOWN ON THE MARKET VALUE. I ACTUALLY WAS VERY PLEASED BY THIS.
WE'RE HEARING ALL OVER THE NEWS THAT MARKET VALUES ARE DROPPING ON OUR RESIDENTIAL SIDE.
I THINK THEY'RE STARTING TO STABILIZE OUT RIGHT NOW.
A LOT OF THAT IS NOT GOING TO SHOW UP UNTIL JANUARY 1ST.
THE APPRAISAL DISTRICTS ARE ALWAYS A YEAR BEHIND.
SO BUT RIGHT NOW, ON YOUR AVERAGE MARKET VALUE AT THE 43.7 $0.06, THE AVERAGE HOMEOWNER FOR THE MARKET VALUE WOULD SAVE $5 IF YOU ADOPT THAT 43.76. NOW, THIS IS YOUR TAXABLE VALUE.
IT DID INCREASE. IT INCREASED LIKE 2.75%. IT WENT UP TO 464,574 AT THAT TAX RATE OF 43.76 FOR THE YEAR, THEY'D SEE A $55 INCREASE.
ASSESS PROPERTY VALUES DID COME IN AT 66.3 BILLION.
OUR CERTIFIED ESTIMATE HAD HAD US AT 65.8. SO WE DID COME IN MORE THAN THEY ORIGINALLY TOLD US, WHICH WAS WONDERFUL. AND ON THAT SIDE OF IT, WE ENDED UP THE EXISTING PROPERTY VALUES GAINED $1.1 BILLION, AND YOU HAD NEW PROPERTY GROWTH OF $655 MILLION.
THIS IS A LOOK. THE CITY OF PLANO OFFERS ALL KINDS OF EXEMPTIONS.
YOU HAVE THE 20% GOING ON. WE ALSO HAVE $40,000 FOR 65 AND OVER OR DISABLED.
YOU ALSO OFFER THE TAX FREEZE. IN ADDITION, WITHIN THIS NUMBER IS A CHANGE IN THE LAW THAT ON BUSINESS, PERSONAL PROPERTY THEY USED TO WRITE OFF, I THINK IT WAS $2,500.
THAT EXEMPTION NOW IS AT 125 MILLION 125,125,000.
SO ALL THOSE NUMBERS ARE INCLUDED IN HERE. SO OFF YOUR APPRAISED PROPERTY VALUES WE GET WRITTEN OFF 16.6 BILLION. THAT EQUATES TO SAVINGS TO EVERYBODY OF 72.8 MILLION.
AND THEN FOR THIS YEAR YOU'RE OVER 65 OR 65 AND OVER TAX FREE TOTAL $16.3 MILLION.
THE AVERAGE MARKET VALUE, WHEN YOU LOOK AT ALL THE OTHER ENTITIES THAT THE AVERAGE HOMEOWNER IS GOING TO PAY INTO TOTALS 1.70 $0.09 FOR THIS NEXT YEAR, OR A BILL OF 7938.
I WILL TELL YOU THIS. WE HAVE THE 43.7 6PISD IS PLANNING ON GOING DOWN ON THEIR RATE, THEIR BUDGETS NOT ADOPTED TILL AUGUST. WE STILL DON'T HAVE ANY INFORMATION FROM COLLIN COUNTY OR THE COLLEGE DISTRICT, SO THEIRS IS LATER IN THE PROCESS. SALES TAX.
MANY OF YOU ALL KNOW WE DO OPERATE UNDER A SALES TAX CAP WHERE WE TAKE THE LAST THREE YEARS MINUS ANY AUDIT ADJUSTMENTS, ANY ONE TIME THINGS THAT COME IN LAST YEAR OR IN 2023, WE DID START ADDING AN INFLATIONARY FACTOR TO THAT.
SO THIS YEAR YOUR INFLATIONARY FACTOR IS 3%. WE HAVE DONE OR Y'ALL HAVE DONE ALL KINDS OF THINGS WITH THE SALES TAX CAP AT THE END OF THE YEAR, ANYTHING LEFT OVER YOU CAN UTILIZE FOR ONE TIME EXPENDITURES.
YOU CAN HAVE IT GO TO THE RAINY DAY FUND CAPITAL MAINTENANCE, AND THIS IS JUST A LISTING OF THE ITEMS THAT HAVE BEEN PAID FOR THROUGH THE SALES TAX CAP THIS LAST YEAR. IF YOU REMEMBER CORRECTLY, WE HAD $7 MILLION.
I'M GOING TO GET TO HERE IN A MINUTE. LEFT OVER.
[00:15:07]
AND I FORGOT TO PUT THAT LAND BANK ON HERE. BUT I DO HAVE THE RAINY DAY FUND.AS FAR AS THE PROJECTIONS YOU HAVE WITHIN YOUR BUDGET DOCUMENT, THE RE ESTIMATE, WE HAVE AT 133 $133 MILLION THE FIRST NINE MONTHS OF THIS YEAR, UP $5.5 MILLION.
NOW, WHAT WE HAVE DONE WITH THIS PROJECTION, THE REASON WHY THAT 7 MILLION CAME BACK AROUND LAST AUGUST AND SEPTEMBER, WE RECEIVED A BUNCH OF AUDIT ADJUSTMENTS.
WE ALSO HAD RECEIVED FROM AN ENTITY THAT WE FOUND OUT THAT WAS A ONE TIME PAYMENT OF $2.5 MILLION.
SO WITHIN OUR PROJECTIONS, WE HAVE ELIMINATED THOSE.
OKAY. SO THIS IS WHAT WE THINK RIGHT NOW. WE WILL GET IN BETWEEN NOW AND THE END OF SEPTEMBER FOR NEXT YEAR. WE ARE DOING THE AVERAGE THREE YEARS NET OUT, ANY ADJUSTMENTS OR ONE TIME PAYMENTS.
SO WE HAVE THAT $129.7 MILLION AND HAVE INCLUDED A 3% INFLATIONARY FACTOR ON AUGUST 13TH. YOU HAVE A BUDGET WORK SESSION, AND I WILL HAVE MUCH MORE DETAILS REGARDING SALES TAX AT THAT TIME.
WE DID INCLUDE A 10% REDUCTION FOR NEXT YEAR.
SO THIS IS A PROJECTION THAT BUDGET AND THE BUILDING INSPECTIONS DEPARTMENT CAME UP WITH.
SO IT IS IT'S HOLDING STEADY. BUT WE DO HAVE A 10% DECLINE FOR NEXT YEAR.
OKAY. JUST SOME BUDGET HIGHLIGHTS, AS MARK HAS ALREADY MENTIONED.
REALLY NO NEW PROGRAMS OR SERVICES WITH THE EXCLUSION OF VA.
WE DO HAVE THAT 3% ACROSS THE BOARD SALARY INCREASE.
THAT TOTALS $6.7 MILLION. WE'VE HAD TO INCREASE THE TRANSFER INTO THE HEALTH INSURANCE FUND.
THAT TOTAL WAS $4.7 MILLION. I HAD ALREADY MENTIONED WE HAD TO TRANSFER FROM OPERATIONS OVER TO DEBT THAT TOTALED NEARLY $6 MILLION. ONE THING WE DID DO WITH OUR CERTIFIED VALUES COMING IN HIGHER, WE DID END UP HAVING SOME REMAINING IN THE GENERAL FUND. SO IT WAS CHOSEN AT THAT TIME TO SHIFT 3 MILLION INTO THE RAINY DAY FUND.
WE ALSO HAVE PUT A PLACEHOLDER IN THE NON-DEPARTMENTAL BUDGET OF $3 MILLION TO SHIFT OVER TO DEBT NEXT YEAR, ONCE AGAIN IN JUST A MINUTE. WE ARE GOING TO TALK TO YOU ALL ABOUT DEBT, AND YOU WILL SEE THE DIFFERENCE THAT $3 MILLION IS GOING TO MAKE.
WE HAVE YEAR TWO OF THE FIRE SHIFT CHANGE INCLUDED IN HERE.
THAT'S 2.5. ONCE AGAIN, NORTH TEXAS MUNICIPAL WATER DISTRICT.
THAT $13 MILLION. THE WATER YEAR ENDS JULY 31ST.
WE SHOULD BE RECEIVING MORE MONEY, MORE MONEY, MORE INFORMATION ON JULY 31ST.
AND I WILL BE BRINGING BACK THAT INFORMATION TO YOU ON AUGUST 13TH.
THE CAPITAL MAINTENANCE FUND TRANSFER. WE'VE BEEN AT $25 MILLION FROM THE GENERAL FUND OVER TO CAPITAL MAINTENANCE FOR SEVERAL YEARS NOW TO FUND CAPITAL MAINTENANCE. NOW, WHAT WE'VE DONE IS WE RECEIVED IN $5.8 MILLION FOR DART.
WE TRANSFERRED THAT INTO THE CAPITAL MAINTENANCE FUND.
WE REDUCED THE TRANSFER IN THAT $5.8 MILLION IS GOING TO GO TO PROJECTS WITHIN CAPITAL MAINTENANCE THAT WE ARE GOING TO PAY FOR GENERAL MOBILITY PROGRAM PROJECTS AS PER THE CONTRACT.
CIP COMING ONLINE TOTALS $238,000. THEN WE HAVE ADDITIONAL REQUIRED FUNDING THAT WE HAD TO INCLUDE.
WE STILL ARE BEING HIT WITH INFLATIONARY ITEMS. ALSO INCLUDED IN THAT IS $900,000 FOR THE NOVEMBER ELECTION.
JUST SOME OTHER INFORMATION ON THE WATER AND SEWER ALREADY MENTIONED.
[00:20:01]
WE'LL BE BRINGING BACK MORE INFORMATION. I DID WANT TO LET YOU ALL KNOW, A COUPLE OF YEARS AGO, THE THE LOWEST RESIDENTIAL RATE WE HAD WHERE IT WAS BEING SUBSIDIZED.THE CITY COUNCIL AT THAT TIME MADE A DECISION TO DO A THREE YEAR PHASE IN.
SO THAT LOWEST TIER NOW IS GOING TO BE PAYING THE FULL COST OF WATER.
AND THIS IS THE LAST YEAR OF THE PHASE IN. ONCE AGAIN.
I'LL BE BRINGING IN MORE INFORMATION ON THAT.
OUR CONSUMPTION IS DOWN. NOW, THIS WAS AS OF JUNE 30TH.
IT'S BEEN VERY HOT. HOT HOT, HOT THIS MONTH. SO ANYWAY, IT MIGHT NOT BE AS DOWN AS WHAT WE THINK.
SO, BUT WE'RE NOT GOING TO KNOW TILL THE 31ST.
BUT WE HAVE HAD TO GO DOWN ON OUR WATER PROJECTIONS FOR THIS YEAR BY $4 MILLION.
ONCE AGAIN, WE'LL BE BRINGING ALL THIS BACK TO YOU.
AND NEXT YEAR, THE ALL ENTERPRISE FUNDS ARE ON A.
THE LAST ONE WAS IN 2024 ON THE SOLID WASTE SIDE.
THEY'RE RIGHT NOW UNDERGOING THEIR SOLID WASTE RATE STUDY ON AUGUST 13TH.
AUGUST 13TH IS A VERY BIG DAY FOR Y'ALL. Y'ALL ARE GOING TO HAVE A LOT OF INFORMATION.
WE'RE GOING TO BE PRESENTING THAT RATE STUDY RIGHT NOW.
PRELIMINARY. THEY'RE SAYING ABOUT A DOLLAR PER MONTH FOR THE CARTS.
SO WE'VE INCLUDED THAT WITHIN THE BUDGET. ALSO DUE TO SOME CHANGES IN EMISSION STANDARDS.
AND SHE'S GOING TO DISCUSS MORE ABOUT THAT WITH YOU.
BUT WE'VE GOT ALL THAT INCLUDED IN THE BUDGET.
THE MUNICIPAL DRAINAGE FUND RIGHT NOW IS 294 DAYS.
THE AVERAGE HOMEOWNER WAS ABOUT $1.50. AND THEN WE WENT UP ON THE COMMERCIAL SIDE.
THIS RATE IS INTENDED TO LAST TILL 2020 829. THE CONVENTION AND TOURISM FUND FUND BALANCE IS AT 92 DAYS. WE HAVE PUT A $5 MILLION PLACEHOLDER FOR THE WILLOW BEND SITE DEVELOPMENT PROJECT THAT'S ALREADY INCLUDED IN THE BUDGET. ALSO, WE HAVE TWO BIG STUDIES GOING ON IN ADDITION TO SOLID WASTE.
ALL THAT'S GOING TO BE BROUGHT BACK TO YOU ON AUGUST 13TH.
AS FAR AS THE CIP ON AUGUST 10TH. ALL THE DEPARTMENT HEADS WILL GIVE YOU ALL A DETAILED PRESENTATION REGARDING WHAT IS BEHIND ALL THE NUMBERS YOU SEE UP HERE.
SO $290 MILLION IS THE TOTAL FOR THE CIP STREET IMPROVEMENTS IS $88 MILLION.
MUNICIPAL FACILITIES WERE STARTING. SEVERAL OF THE PROJECTS THAT WERE.
BOND PASSED IN THE BOND REFERENDUM. THAT'S 56.
AND THEN CAPITAL MAINTENANCE IS 49 MILLION, FOLLOWED BY WATER AND SEWER.
WE DID JUST GO OUT IN ISSUE IN MAY, THE FIRST INSTALLMENT FOR THE DEBT.
WE NEED TO START BUILDING THE BIG PROJECTS SUCH AS THE POLICE HEADQUARTERS, THE FIRE DEPARTMENT 14, FIRE STATION, EIGHT REMODELING, STREET REPAIRS, PARKS AND REC.
SO WE RECENTLY JUST ISSUED $95.7 MILLION. ONCE AGAIN, IN A MINUTE, YOU'RE GOING TO SEE WHAT WE'RE GOING TO NEED GOING OUT OVER THE NEXT COUPLE OF YEARS. I JUST WANTED TO GIVE YOU ALL SOME HIGHLIGHTS.
WE'RE VERY PROUD OF OUR FISCAL ROADMAP PROJECT.
IT HAS WORKED OUT VERY, VERY WELL FOR US. SEVERAL OF THESE.
AND MOST OF THEM NOW WE ARE MEETING THE GOAL.
THE GENERAL FUND RIGHT NOW IS SITTING AT 61 DAYS.
OUR POLICY TARGET 60, OUR RAINY DAY FUND. WE'D LIKE TO HAVE 20 IN THERE.
RIGHT NOW IT IS ESTIMATED IT'S GOING TO BE 14.4.
THE GENERAL GENERAL FUND CAPITAL MAINTENANCE 24 MILLION.
WE LIKE A POLICY TARGET OF 20 ON OUR DEBT SERVICE.
WE NEED TO HAVE BETWEEN 5 AND 10% AND WE'RE AT 6.5.
[00:25:06]
AND THEN HERE'S A LOOK AT ALL THE DIFFERENT ENTERPRISE FUNDS.WE'RE WITHIN TARGET ON ALL OF THEM. AND THE HEALTH CLAIMS FUND.
ONCE AGAIN WE'RE JUST LIKE EVERYBODY ELSE. HEALTH CLAIMS HAVE SUBSTANTIALLY GONE UP.
WE WOULD LOVE TO HAVE 19 IF WE CAN GET TEN. I WILL BE ECSTATIC.
JUST A COUPLE OF KEY DATES OF COURSE. TONIGHT YOU'RE GETTING THE RECOMMENDED BUDGET SIP.
ALL THE COPIES HAVE BEEN DELIVERED TO THE LIBRARIES.
IT WILL GO ONLINE. IT'S ON THE WEBSITE AUGUST 10TH.
YOU WILL HEAR ALL ABOUT THE CAPITAL IMPROVEMENT PROGRAM.
AND THEN WE WILL HAVE A PUBLIC HEARING ON THE BUDGET AND THE CIP.
AND THAT NIGHT, YOU WILL NEED TO DETERMINE THE PROPOSED TAX RATE THAT GOES INTO THE NEWSPAPER.
AND THEN YOU DO APPROVE THE CERTIFIED TAX ROLL AUGUST 13TH.
ONCE AGAIN, I HAD MENTIONED IT'S GOING TO BE A BIG EVENING.
SOLID WASTE FEE STUDY IS COMING BACK TO YOU. WE WILL DISCUSS WHAT'S GOING ON WITH WATER AND SEWER AND SALES TAX ON AUGUST 24TH. WE'LL HAVE ANOTHER PUBLIC HEARING ON THE BUDGET CIP AND TAX RATE.
JUST TO LET YOU KNOW, WE REALLY ONLY HAVE TO HAVE ONE PUBLIC HEARING ACCORDING TO THE LAWS, BUT WE LIKE TO HAVE THEM ALL THE WAY THROUGH THE BUDGET PROCESS TILL CITY COUNCIL ADOPTS.
AND YOU'RE SCHEDULED TO ADOPT ON SEPTEMBER 14TH, THE BUDGET, THE CIP, AND SET THE TAX RATE.
PLUS WE HAVE THE PUBLIC HEARING. AND THEN OCTOBER 1ST WILL BEGIN ALL OF THIS AGAIN.
ALL OF THIS INFORMATION IS INCLUDED AT ALL THE LIBRARIES.
CITIZENS CAN FIND IT AT WWW.PLANO.GOV/BUDGET.
SO ALL THAT'S LOADED AND READY TO GO. WHAT QUESTIONS DO YOU HAVE ON THE OPERATING SIDE? I'M ABOUT TO BRING JASON UP AND WE NEED TO TALK ABOUT DEBT AND THE BOND REFERENDUM.
[IV. Future Debt Issuance Presentation]
YES, SIR. WHY DON'T WE DO WHY DON'T WE GO AHEAD AND GET THE PRESENTATION ON THAT SIDE? AND IF EVERYBODY WILL SAVE YOUR QUESTIONS AT THE END, WE'LL WE'LL KNOCK THEM ALL OUT TOGETHER.HI. GOOD AFTERNOON, JASON GREGORASH, BUDGET CIP MANAGER.
THOSE PROJECTS ARE FUNDED THROUGH A VARIETY OF SOURCES, DEPENDING ON THEIR TYPE, INCLUDING DEBT INSTRUMENTS SUCH AS GENERAL OBLIGATION BONDS, TAX NOTES, CERTIFICATES OF OBLIGATION AND REVENUE BONDS, AS WELL AS TRANSFERS FROM OPERATING FUNDS FOR CAPITAL MAINTENANCE AND WATER AND SEWER PROJECTS AND PARK SERVICE AREA FEES. HERE, YOU'LL SEE THE PERCENTAGE OF THE TOTAL 2627 CIP BUDGET OF $290 MILLION THAT EACH OF THOSE RESOURCES FUNDS.
AND AS YOU CAN SEE, GENERAL OBLIGATION BOND BONDS FUND THE MAJORITY OF THOSE PROJECTS.
AFTER THE BOND SALE THAT KAREN MENTIONED FROM THIS SPRING OF $95.7 MILLION, THE CITY NOW HAS JUST SHY OF $609 MILLION OF UNISSUED AUTHORITY FROM THE 21 AND 25 BOND REFERENDA.
EACH YEAR'S BOND SALES, DETERMINED BY TAKING THE BUDGETED EXPENDITURES WITHIN EACH CATEGORY, TAKING OUT AVAILABLE RESOURCES THAT WE HAVE ON HAND TO COME UP WITH A TOTAL INCLUDED IN THE 2627 CIP IS A PROPOSED BOND SALE OF $76.87 MILLION. HOWEVER, AS HAS BEEN MENTIONED IN THE 25 PROGRAM, THERE WERE SEVERAL LARGE NEW AND REPLACEMENT FACILITIES INCLUDED, SUCH AS POLICE HEADQUARTERS, FIRE STATION NUMBER 14, THE POLICE TRAINING CENTER AND THE FLEET OPERATIONS CENTER ON TOP
[00:30:07]
OF STREET IMPROVEMENTS AND PARK IMPROVEMENTS.AS THOSE PROJECTS SHIFT FROM THEIR ARCHITECTURAL DESIGN PHASE INTO CONSTRUCTION.
THE EXPENDITURES WILL INCREASE ALONG WITH THAT.
ALONG WITH THAT INCREASE. THE CITY PAYS ITS PRINCIPAL AND INTEREST PAYMENTS ON ITS DEBT OBLIGATIONS OUT OF ITS DEBT PORTION OF ITS TAX RATE.
AS WE'VE TALKED ABOUT, THE CURRENT RATE IS AT 11.5 CENTS IN THE RECOMMENDED BUDGET.
THERE'S A PROPOSED INCREASE OF 0.9 CENTS, WHICH WOULD BRING IT TO 12.4, AS WE WOULD MAKE THOSE BOND SALES FROM THE PREVIOUS SLIDE OF GREATER AMOUNTS, YOU WOULD NEED TO THEN INCREASE YOUR DEBT RATE TO KEEP UP WITH THOSE OBLIGATIONS, AS SHOWN HERE.
FOR 2728, IT GOES UP BY 0.8 CENTS. AND AS KAREN MENTIONED, THERE'S THAT THREE.
MILLION DOLLAR DEBT RESERVE PLACEHOLDER THAT IS A NON-DEPARTMENTAL.
IF THAT IS APPROVED, THAT WOULD THEN REDUCE THE PROPOSED CHANGE FROM THE.
POINT $0.08 TO 0.5 WHILE AVERAGING OUT THE OTHER INCREASES OVER THE REMAINING YEARS.
WE WANTED TO GET THIS INFORMATION TO YOU NOW, GIVEN THE POTENTIAL IMPACT OF THE FUTURE, SO THAT YOU COULD HAVE ANY DISCUSSIONS THAT YOU WOULD NEED. I JUST HAVE ONE COMMENT DURING THE DURING THE BOND REFERENDUM PROCESS AND IN ALL OUR LITERATURE THAT WENT OUT, WE DID NOTIFY CITIZENS THAT VOTED THAT WE MOST LIKELY WOULD SEE 3 TO 4 CENT INCREASE.
SO IN THE TAX RATE TO COVER ALL THE BONDS, THIS WAS A VERY, VERY LARGE REFERENDUM.
SO I JUST WANT TO LET YOU ALL KNOW THAT WAS INCLUDED WITHIN THE INFORMATION THEY RECEIVED.
SO WHAT QUESTIONS DO YOU GOT? THANK YOU. OKAY.
COUNCIL. ANY QUESTIONS FOR KAREN OR OR JASON? GO AHEAD. COUNCIL MEMBER KEHR. YES, I HAVE ONE QUESTION FOR KAREN.
EARLY ON, YOU SHOWED THE AVERAGE HOME VALUE IN PLANO 590 K OR SO.
THEN YOU SHOWED THE TAXABLE VALUE WHICH WAS A LOWER NUMBER.
THE AVERAGE VALUE OF THE HOME HAS GONE DOWN BY A PERCENTAGE.
BUT THE TAX TAXABLE RATE WENT UP. COULD YOU SPEAK TO THAT.
YES THAT IS CORRECT. THE THE MARKET VALUE WENT DOWN.
THAT'S WHAT THE APPRAISAL DISTRICTS THAT'S WHAT THEY'RE APPRAISING AT.
THE TAXABLE VALUE IS LIMITED BY THE STATE THAT SAYS OR THE TAX CODE.
THE APPRAISED TAXABLE VALUE CAN ONLY GO UP 10% PER YEAR.
SO AND BACK ON THAT SLIDE, WHICH I'M NOT GOING TO MESS WITH RIGHT HERE.
BUT AT THE END OF THE DAY, SOME OF THE, YOU KNOW, RESIDENTS SAW DOUBLE OF THAT 10%.
THEY WERE ONLY NEEDED TO PAY OR REQUIRED TO PAY THAT 10%.
NOW WHAT'S GOING ON? BECAUSE REALLY OUR TAXABLE VALUE ONLY WENT UP 2.75%.
SO THAT CAP IS COMING DOWN. WE NO LONGER ARE GOING TO HAVE THAT CAP, MOST LIKELY NEXT YEAR, BECAUSE WHAT HAPPENS IS YOUR MARKET VALUE MEETS YOUR TAXABLE VALUE.
AND THAT 10%, THE HOMESTEAD CAP ADJUSTMENT THAT THEY HAVE ON THEIR TAX BILL WHEN THEY GET IT, WILL MOST LIKELY NO LONGER BE THERE. SO KAREN, IT'S IT'S FAIR TO SAY IT'S A RESIDUAL FROM PREVIOUS YEARS.
THAT'S CORRECT. THAT YES IT IS. THE CAP DID NOT CAPTURE.
AND IT HAD BEEN LIMITED OVER THE YEARS BECAUSE OF STATE LAW.
YES THAT'S CORRECT. OKAY. THANK YOU. THAT IS CORRECT.
ANYONE ELSE? MAYOR AND COUNCIL. WE'RE GOING TO HAVE SOME INDIVIDUAL MEETINGS.
I'LL BE MEETING WITH YOU ALL STARTING NEXT WEEK TO TO GO THROUGH THIS.
WE JUST WANTED TO BE UP FRONT THAT THIS YEAR WE ARE ABLE TO USE, YOU KNOW, SOME FUND BALANCE AND SOME SOME OTHER ELEMENTS OF ONE TIME EXPENDITURES THAT WE WE FEEL COMFORTABLE DOING THIS, BUT I NEEDED TO PUT IT ON YOUR RADAR FOR, FOR FUTURE YEARS TO MAKE SURE THAT WE'RE,
[00:35:04]
WE'RE BEING UPFRONT ABOUT SOME OF THE CHALLENGES WE'LL FACE IN THE FUTURE, BUT WITH THAT, WE'RE HAPPY TO ANSWER ANY QUESTIONS. AGAIN, KAREN, JASON, CASEY, MYSELF, DENISE IS UP THERE AS WELL.WE'RE HAPPY TO ANSWER ANY QUESTIONS, BUT WE'LL BE ABLE TO FOCUS MORE.
ALSO GIVE YOU A LITTLE BIT OF TIME TO DIGEST THIS AND THEN CIRCLE BACK WITH YOU.
SO WE, WE HAVE A LOT IN THE VERY NEAR FUTURE OF SPECIFIC INFORMATION THAT WILL NEED TO ABSORB AND AND GET THROUGH THIS BUDGET SEASON. BUT I APPRECIATE EVERYBODY BEING HERE.
AND THIS, AS YOU SAID, MARK, IS A HIGH LEVEL DISCUSSION,
BUT WE'LL, WE'LL GET INTO LITTLE MORE DETAILS IN THE NEXT COUPLE OF WEEKS. SO THERE BEING NO FURTHER BUSINESS,
WE'RE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.