GOOD EVENING EVERYBODY. IT'S 5:01 P.M. AND IT IS MONDAY MAY. [1. CALL TO ORDER AND CONVENE INTO EXECUTIVE SESSION] [00:00:05] EXCUSE ME. MARCH 30TH, 2026. I MAYOR RACHEL PARKER, I WANT TO WELCOME YOU ALL TO OUR CITY COUNCIL MEETING THIS TONIGHT, AND I'M GOING TO ASK OUR CITY SECRETARY TO CONDUCT A ROLL CALL, PLEASE. MAYOR RACHEL PROCTOR HERE, MAYOR PRO TEM CRYSTAL CHISHOLM HERE, COUNCIL MEMBER PARKER, COUNCIL MEMBER KEN WATERS HERE, COUNCIL MEMBER ANDRE BYRD, SENIOR HERE, COUNCIL MEMBER DEBORAH NORTH, COUNCIL MEMBER LETITIA HUGHES, THANK YOU. THANK YOU. WE'LL HAVE THE NEXT ITEM ON THE AGENDA. FIRST, WE'LL HAVE THE SAFETY PROTOCOL STATEMENT BY FIRE CHIEF BRIAN STEWART. GOOD EVENING, MAYOR AND COUNCIL. BEAUTIFUL WEATHER OUTSIDE TODAY. SO WE'RE NOT EXPECTING ANY INCLEMENT WEATHER IN THE EVENT OF AN EMERGENCY. YOU GUYS KNOW YOUR SAFETY PROTOCOLS AS DOES STAFF. WE DO HAVE EXITS TO MY LEFT AND OUT THE MAIN DOORS. WE HOPE TO HAVE A GREAT MEETING. THANKS. THANK YOU. CHIEF. I LIKE THE SLIDE. ALL RIGHT. AT THIS TIME, WE'LL HAVE THE NEXT ITEM ON THE AGENDA. THE CITY COUNCIL WILL CONVENE INTO EXECUTIVE SESSION PURSUANT TO SECTIONS FIVE FIVE, 1.07, ONE OF THE TEXAS GOVERNMENT CODE, TO DISCUSS THE CONSULTATION WITH CITY ATTORNEY REGARDING SHORT TERM RENTALS AND RENTAL REGISTRATION. THANK YOU. THANK YOU, MADAM CITY SECRETARY. AT THIS TIME, WE WILL CONVENE INTO EXECUTIVE SESSION AND WE WILL RETURN IF THERE WITH ANY ACTION AS A RESULT. GOOD EVENING EVERYBODY. IT IS 6:07 P.M. I MAYOR RACHEL PROCTOR. I WANT TO CALL OUR MEETING BACK TO ORDER. WE'VE CONVENED OUT OF EXECUTIVE SESSION. THERE WAS NO ACTION AS A RESULT OF THAT EXECUTIVE SESSION. SO AT THIS TIME, I'M GOING TO CALL OUR SPECIAL MEETING TO ORDER AT 6:08 P.M., AND WE'LL HAVE A ROLL CALL AGAIN FROM OUR CITY SECRETARY, MAYOR RACHEL L PROCTOR HERE. MAYOR PRO TEM CRYSTAL CHISHOLM HERE, COUNCIL MEMBER PARKER HERE, COUNCIL MEMBER KEN WATERS HERE. COUNCILMEMBER ANDRE BYRD, SENIOR HERE. COUNCIL MEMBER DEBORAH NORTH HERE. COUNCIL MEMBER LETICIA HUGHES HERE. THANK YOU. WE'LL HAVE THE FIRST ITEM ON OUR AGENDA AT THIS TIME. [2. SAFETY PROTOCOL STATEMENT BY: FIRE CHIEF BRYAN SOUTHARD] WE WILL HAVE THE SAFETY PROTOCOL STATEMENT BY FIRE CHIEF SOUTHER. THANK YOU. GOOD EVENING EVERYONE. WE HAVE BEAUTIFUL WEATHER OUTSIDE, SO WE'RE NOT EXPECTING ANY INCLEMENT WEATHER IN THE EVENT OF ANY OTHER TYPE OF EMERGENCY. WE'LL ASK YOU TO EXIT THE BUILDING. THERE'S AN EMERGENCY EXIT TO MY RIGHT OR YOUR LEFT, OR BACK OUT THE SAME DOOR AS YOU CAME IN AND TO YOUR RIGHT. ONCE OUTSIDE, PLEASE REMAIN UNTIL YOU'RE INSTRUCTED TO COME BACK INTO THE BUILDING. AND REMEMBER, SAFETY IS NO ACCIDENT. THANK YOU CHIEF. I LIKE THAT QUOTE. THAT'S A VERY INSPIRATIONAL. ALL RIGHT. WE WILL HAVE THE NEXT ITEM ON THE AGENDA. [a. Presentation of the Fiscal Year 2025 Annual Comprehensive Financial Report & Single Audit Report] WE WILL NOW HAVE THE PRESCHOOL REPORT AND SINGLE AUDIT REPORT. INTRODUCING THE PRESENTERS IS FINANCE DIRECTOR LAKITA SUTTON. GOOD EVENING, MAYOR AND CITY COUNCIL. I'M EXCITED TONIGHT TO BRING FORTH THE RESULTS OF OUR FISCAL YEAR 2025 AUDIT. THE CITY HAD AN A F C MEETING OF THE AUDIT FINANCE COMMITTEE ON MARCH 3RD, 2026, WHERE STAFF PRESENTED THE FISCAL YEAR RESULTS OF THE FISCAL YEAR 2025 AUDIT IN ATTENDANCE AT THAT MEETING, WHERE THE COMMITTEE MEMBERS, ALONG WITH OUR AUDIT CONSULTANTS FROM MAZARS, WHICH WAS JOSH FINLEY, THE DIRECTOR, AND TIFFANY MONTALVO, THE AUDIT MANAGER. WE ALSO HAD OUR TWO MEMBERS FROM THE COMMUNITY WHO ARE ON THE COMMITTEE TO ATTEND AS WELL. I'M SORRY, ONE WAS ABSENT, BUT ONE WAS IN ATTENDANCE AND OFFERED SOME VERY VALUABLE FEEDBACK FOR US AS WELL. I'M PLEASED TO ANNOUNCE THAT FOR OUR FISCAL YEAR 25 AUDIT, WE HAD NO FINDINGS, WE HAD NO INTERNAL CONTROL ISSUES, AND OUR AUDITORS FOUND THAT WE HAVE VERY SOUND POLICIES AND PRACTICES, AND THAT HAS HAPPENED FOR SEVERAL YEARS IN A ROW. SO WITHOUT FURTHER ADO, I WOULD LIKE TO BRING FORWARD JOSH FINDLAY, WHO IS THE DIRECTOR, AND TIFFANY MONTALVO, WHO LED THE AUDIT FOR OUR FINANCIALS. THANK YOU. ALL. HELLO, MAYOR. COUNCIL, GOOD TO SEE YOU ALL AGAIN. I RECOGNIZE A FEW Y'ALL'S FACES. LIKE SHE SAID, MY NAME IS JOSH FINLEY. I WAS THE LEAD AUDIT ENGAGEMENT EXECUTIVE FOR FISCAL YEAR 25 AUDIT. THAT IS YOUR YEAR ENDING 930, 2025. SO WE'RE COMING UP ON SIX MONTHS. LIKE LAKITA SAID, WE ISSUED OUR AUDIT OPINIONS LAST MONDAY, SO A WEEK AGO, AND WE'RE HAPPY TO BE HERE TO PRESENT THE FINAL RESULTS. I DIDN'T PUT YOUR FACE ON THERE. SORRY. BEFORE I MADE THIS PRESENTATION. BEFORE I KNEW SHE WOULD COME WITH ME. BUT I'M GOING TO LET TIFFANY. SHE WAS THE MANAGER ON THE AUDIT. SHE DID THE MAJORITY OF THE WORK AND WORKED WITH NIKITA AND ANY, SO I'M GOING [00:05:06] TO LET HER WALK THROUGH THE MAJORITY OF THE SLIDES. BUT WE'LL ANSWER ANY QUESTIONS AS YOU ALL HAVE THEM. JUST PLEASE FEEL FREE TO STOP US. YOU WANT TO GO THROUGH THE AGENDA? GOOD EVENING. SO WHAT WE HAVE ON THE AGENDA FOR TONIGHT IS FIRST GOING THROUGH THE AUDIT SCOPE, RESULTS AND ACHIEVEMENTS FOLLOWED BY SOME FUTURE PRONOUNCEMENTS AND OTHER MATTERS. QUICK BRIEF FINANCIAL OVERVIEW AND THEN WE'LL OPEN IT UP TO ANY QUESTIONS. SO FOR THE AUDIT SCOPE AND RESULTS. SO THE CITY RECEIVED THREE REPORTS THIS YEAR. FIRST IS THE FINANCIAL STATEMENT OPINIONS. SO CLEAN UNMODIFIED OPINIONS ON THE CITY'S AQUIFER. THAT'S AN A PLUS ON THE CITY'S REPORT CARD. AND THEN ADDITIONALLY DURING FISCAL YEAR 25 THE CITY EXPENDED $1.8 MILLION IN FEDERAL AWARDS, AND THAT EXCEEDED THE 1 MILLION SINGLE AUDIT THRESHOLD REQUIRING THE CITY TO HAVE A SINGLE AUDIT. AND SO THESE NEXT TWO REPORTS ARE IN RELATION TO THAT SINGLE AUDIT. SO THE REPORT ON INTERNAL CONTROL OVER COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS. AND THERE WERE NO REPORTABLE FINDINGS THERE. AND THEN ALSO THE REPORT ON COMPLIANCE OVER EACH MAJOR, MAJOR FEDERAL PROGRAM AND THE REPORT ON INTERNAL CONTROL OVER THOSE PROGRAMS. AND AGAIN, NO REPORTABLE FINDINGS THERE AS WELL. IN TERMS OF AUDIT ADJUSTMENTS, THERE WERE JUST A FEW, BUT ALL OF THOSE WERE OUTSOURCED TO US PRIOR TO THE START OF THE AUDIT. SO THE FIRST WAS ADJUSTMENTS TO CONVERT FROM THE MODIFIED ACCRUAL TO THE FULL ACCRUAL BASIS OF ACCOUNTING. THIS IS ESSENTIALLY JUST TO GET FROM YOUR FUND FINANCIAL STATEMENTS TO YOUR GOVERNMENT'S SECOND ADJUSTMENTS RELATED TO THE GASB STATEMENT 68 AND 75, WHICH ARE YOUR PENSION AND OPEB STANDARDS. AND THEN 87, 94 AND 96, WHICH RELATES TO YOUR LEASES AND SUBSCRIPTIONS. AND THEN LASTLY, JUST SOME MISCELLANEOUS ADJUSTMENTS FOR REPORT PRESENTATION. AND THERE WERE NO MATERIAL WEAKNESSES OR SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL. CITY'S SIGNIFICANT ACCOUNTING POLICIES ARE DESCRIBED IN NOTE ONE OF THE AUDITED FINANCIAL STATEMENTS. A FEW ADJUSTMENTS THIS YEAR JUST IN RELATION TO ADOPTING GASB STATEMENT 101 COMPENSATED ABSENCES AS A RESULT OF ADOPTING THIS STANDARD. THERE WAS NOT A SIGNIFICANT IMPACT ON THE CITY'S FINANCIAL STATEMENTS. THE CITY ALREADY ACCRUES FOR COMPENSATED ABSENCES, SO IT WAS REALLY MORE JUST MAKING SURE THEY'RE CHECKING ALL THE BOXES AND THAT THE STANDARD WAS TRYING TO GET ALL CITIES KIND OF ALIGNED WITH WHAT THEY ARE DOING. SO NO IMPACT REALLY TO THE CITY. AND THEN THERE WEREN'T ANY OTHER MATTERS TO REPORT RELATED TO UNUSUAL POLICIES OR ALTERNATIVE ACCOUNTING TREATMENTS. A COUPLE OTHER REQUIRED COMMUNICATIONS. THERE WERE NOT ANY SIGNIFICANT ISSUES DISCUSSED WITH MANAGEMENT DURING THE AUDIT PROCESS OR AND THERE WERE NOT ANY DISAGREEMENTS WITH MANAGEMENT DURING THE AUDIT AS WELL. AND THEN KIND OF JUST A LITTLE BIT OF BACKSTORY. SO, YOU KNOW, WE STARTED THIS AUDIT ABOUT SIX MONTHS AGO. BACK IN THE FALL, WE CAME OUT, WE DID OUR INTERIM PROCEDURES CONSISTING OF LOOKING AT CONTROLS DOING OUR PLANNING AND RISK ASSESSMENTS, THINGS OF THAT NATURE. WE LEAVE FOR A LITTLE BIT, CITY CLOSES THEIR BOOKS AND THEN WE COME BACK AND WE DO THE MAJORITY OF OUR AUDIT IN THE JANUARY THROUGH MARCH TIME FRAME. SO THIS HAS BEEN A MARATHON FOR THE CITY, VERY MUCH NOT A SPRINT. AND IT WOULDN'T BE POSSIBLE WITHOUT ALL OF THE, THE HELP OF THE DEPARTMENTS, BUT ESPECIALLY THE TEAM OF LAQUITA AND ANGIE AND THE FINANCE TEAM. SO THANK YOU ALL VERY MUCH FOR ANOTHER GREAT AUDIT YEAR. AND THEN AS YOU KNOW, TO SHOW TRUE TESTAMENT TO THE CITY'S DEDICATION TO HAVING A COMMITMENT TO QUALITY FINANCIAL REPORTING. THE CITY DID RECEIVE THE GFOA AWARD LAST YEAR, AND THAT'S INCLUDED IN THIS YEAR'S AFR, AND THEY WILL SUBMIT AGAIN THIS YEAR AND SHOULD RECEIVE THE AWARD AGAIN. AND THEY'VE RECEIVED THIS AWARD FOR 28 YEARS. SO THAT'S A TRUE COMMITMENT RIGHT THERE. YES. ROUND OF APPLAUSE. ALL RIGHT. ON TO FUTURE PRONOUNCEMENTS. SO IT WOULDN'T BE AN AUDIT PRESENTATION IF WE DIDN'T TALK ABOUT WHAT'S IN THE PIPELINE FOR GASB. THE NEXT FEW STANDARDS ARE HOPEFULLY GOING TO GIVE US A LITTLE BIT OF A BREAK. THEY'RE NOT GOING TO BE THINGS THAT THE CITY'S ASKED FOR. AND SO ON THE HORIZON IS GASB 103 FINANCIAL REPORTING MODEL IMPROVEMENTS. GASB 104 DISCLOSURE OF CERTAIN CAPITAL ASSETS AND GASB 105 SUBSEQUENT EVENTS. WE DON'T THINK THESE ARE GOING TO HAVE A MATERIAL IMPACT ON THE CITY, BUT WE WILL WORK WITH THEM OVER THE NEXT FEW YEARS TO MAKE SURE THESE ARE IMPLEMENTED PROPERLY. AND THEN FOR THE BRIEF FINANCIAL OVERVIEW AND DISCUSSION. SO AS I MENTIONED EARLIER, THE CITY DID EXPEND $1.8 MILLION IN FEDERAL AWARDS. [00:10:06] THE FEDERAL REQUIREMENTS STIPULATE THAT WE MUST TEST 40% OF THAT EXPENDITURE POPULATION. WE TESTED 60%. SO YOU CAN SEE WE'RE WELL OVER THAT REQUIREMENT. THE PROGRAMS THAT WE TESTED THIS YEAR WERE THE EQUITABLE SHARING PROGRAM, WHICH HAD ABOUT $450,000 OF EXPENDITURES FOR FISCAL YEAR 25. AND WE ALSO TESTED THE CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, WHICH WAS ABOUT $608,000. AGAIN, AS A RESULT OF OUR SINGLE AUDIT, THERE WAS NO COMPLIANCE ISSUES AND THERE WERE NO DEFICIENCIES IN INTERNAL CONTROL IDENTIFIED. FOR THE GENERAL FUND, A GOOD METRIC IS TO LOOK AT WHAT FUND BALANCE IS IN RELATION TO EXPENDITURES OF THE NEXT YEAR'S BUDGET. SO FOR PRESENTATION PURPOSES, THERE ARE NUMEROUS FUNDS THAT ARE KIND OF ACCOUNTED FOR WITHIN THE GENERAL FUND IN THE ACT FOR THOSE AMOUNT TO 54.6 MILLION OR ROUGHLY 78% OF NEXT YEAR'S BUDGETED EXPENDITURES. TO KIND OF NARROW SCOPE THAT TO WHAT IS TRULY JUST THE GENERAL FUND FUND BALANCE AT YEAR END IS ABOUT 33 MILLION, WHICH EQUATES TO 55% OF NEXT YEAR'S BUDGETED EXPENDITURES. SO THAT'S AN EXTREMELY HEALTHY RESERVE FOR THE CITY. ALSO, THE CITY PARTICIPATES IN MRS FOR THE CITY'S PENSION PLAN. AND AS OF FISCAL YEAR 25 YEAR END, THE PLAN IS 95.67% FUNDED. A HEALTHY RANGE IS USUALLY OVER 80%. AND AS YOU CAN SEE, THE CITY IS WELL ABOVE THAT. SO THAT'S AWESOME. AND WITH THAT, WE'LL OPEN IT UP TO ANY QUESTIONS YOU MIGHT HAVE. THANK YOU. GIVE ME YOUR LAST NAME AGAIN. MONTALVO. MONTALVO. THANK YOU. COUNCIL. ARE THERE ANY QUESTIONS REGARDING THE PRESENTATION OF OUR ANNUAL COMPREHENSIVE FINANCIAL REPORT? MADAM MAYOR. YES. THANK YOU, MADAM MAYOR. COUNCIL MEMBER. NO QUESTIONS. WE WE DO WANT TO GO ON RECORD AND THANK MISS SUTTON AGAIN AND HER TEAM FOR AN EXCELLENT JOB. AND CONGRATULATIONS ON YOUR PROMOTION AS WELL, AS WELL AS YOUR ASSISTANT DIRECTOR. VERY WELL DESERVED. AND FOR OUR CITIZENS ONCE AGAIN EVEN A YEAR OF TURNOVER AND TURMOIL ONCE AGAIN, OUR FINANCIAL STATEMENT HAS BEEN PRESENTED. THE QUALITY, THE QUALIFYING STATEMENT OF, OF NO NO, NO ADJUSTMENTS MODIFIED IS A HUGE STATEMENT OF THE INTEGRITY, IF YOU WOULD, OF OUR FINANCIAL STATEMENT. WE CHANGE ACCOUNTING FIRMS EVERY FIVE YEARS, I BELIEVE. ACCORDING TO OUR ORDINANCE. AND SO NOT ONLY OVER THE LAST 28 YEARS HAVE WE'VE GOTTEN THIS REWARD, BUT WITH SEVERAL DIFFERENT EYES LOOKING AT OUR BOOKS. SO I WANT TO THANK YOU. AND AND WE WANT TO REASSURE THE CITIZENS OF DESOTO THAT THEIR MONEY IS WELL HANDLED, WELL CARED FOR AND WELL REPORTED. THANK YOU. THANK YOU. I SEE NO LIGHTS FROM INDIVIDUALS WHO HAVE QUESTIONS. SO WE APPRECIATE YOUR PRESENTATION AND WE WILL SEE YOU LATER ON IN THE AGENDA. THANK YOU. THANK YOU. AT THIS TIME, MADAM CITY SECRETARY, WE'LL HAVE THE NEXT ITEM ON THE AGENDA, [b. Update on the Helping Hands of DeSoto Program Amending Eligibility Requirements] PLEASE. NEXT, WE'LL HAVE THE UPDATE ON THE HELPING HANDS OF DE SOTO PROGRAM. AMENDING ELIGIBILITY REQUIREMENTS. MAKING THE PRESENTATION IS DIRECTOR OF COMMUNITY SERVICE AND EXTERNAL AFFAIRS, DOCTOR ESTHER WILLIAMS. GOOD EVENING. COUNCIL. I'M GOING TO ACTUALLY PASS OUT SOME INFORMATION. SO THE INFORMATION I GAVE YOU, WE'RE GOING TO TALK ABOUT THAT A LITTLE BIT INTO THE SLIDES. IT IS THE MOST CURRENT AND UP TO DATE INFORMATION. I WANTED TO WAIT UNTIL WE GOT THAT. AND I ALSO NEEDED SOME PERMISSION TO ENSURE I COULD PASS OUT THE INFORMATION TO YOU ALL TONIGHT. SO OKAY, SO UPDATES FROM THE LAST TIME WE CAME TOGETHER ABOUT OUR HELPING HANDS OF DE SOTO PROGRAM. I'M GOING TO GIVE YOU A BRIEF PROGRAM UPDATE AND REQUEST AUTHORIZATION TO AMEND ELIGIBILITY REQUIREMENTS REQUIREMENTS TO IMPROVE ACCESS WHILE MAINTAINING PROGRAM OVERSIGHT. I DON'T KNOW WHAT I'M DOING. OKAY. SO TONIGHT'S UPDATE WILL COVER PROGRAM STATUS AND YOU'LL SEE A LOT OF THAT DATA IN FRONT OF YOU TONIGHT. THE APPLICATION TRENDS WILL TALK ABOUT THAT. AND THEN KEY CHALLENGES AS WELL AS PROPOSED ELIGIBILITY UPDATES AND OUR RECOMMENDATION. SO I KNOW THE PRESENTATION SAYS 64 APPLICATIONS RECEIVED, BUT AS OF RIGHT NOW, AS OF THE 26TH, [00:15:02] WE HAVE 126. YOUR PACKET, YOU HAVE A SUMMARY. SO OUT OF THE 126 HOUSEHOLDS WE HAVE 113 THAT HAVE BEEN APPROVED AND 109 THAT HAVE BEEN DENIED. AND FOR OUR PENDING APPROVAL RIGHT NOW THE ASSISTANCE INCLUDES RENT, MORTGAGE UTILITIES AND SNAP RELATED SUPPORT. SO STILL SAME THING WITH THE KEY CHALLENGES THAT HAVE BEEN IDENTIFIED. MANY OF THE APPLICANTS DEMONSTRATE FINANCIAL HARDSHIP, BUT WERE NOT DIRECTLY AFFECTED BY THE FEDERAL SHUTDOWN. ELIGIBILITY REQUIREMENTS RIGHT NOW INCLUDE GOVERNMENT FURLOUGH, JOB LOSS TIED TO THE SHUTDOWN OR SNAP REDUCTION TIED TO SHUTDOWN. SO I JUST WANTED TO SHARE SOME OF THE DATA WITH YOU. AND I WANTED TO PROPOSE SOME IMPROVEMENTS TO THE CURRENT CRITERIA. AND THAT DOES INCLUDE ALLOWING FOR US TO CONSIDER BROADER FINANCIAL HARDSHIPS WITHIN THE LAST 90 DAYS. SO IF THEY HAVE DOCUMENTATION THAT THEY'VE BEEN THAT THEY'VE BEEN RELEASED FROM A JOB OR IF THEIR HOURS HAVE BEEN DECREASED SIGNIFICANTLY, THERE'S ANY OTHER MEDICAL ISSUES THAT MAY HAVE COME UP PRIORITY CONSIDERATION FOR HIGH RISK HOUSEHOLDS, INCLUDING OUR ELDERLY OR DISABLED, OUR VETERANS, AND ESPECIALLY AND THEN ALSO ALSO INCLUDING THE INCOME QUALIFIED HOUSEHOLDS. SO ON THE FRONT PAGE OF YOUR, OF YOUR PACKET, THERE'S ALSO OUR CDBG INCOME LIMITS THAT JUST TO GIVE YOU AN IDEA OF WHAT WHAT THAT PROGRAM ACTUALLY INCLUDES IN THEIR CRITERIA. AND THEN THE VERY LAST PAGE OF YOUR MATRIX, IT'S ALSO CONNECTED IN THE PRESENTATION ON THE AGENDA IS THE PRIORITIZATION MATRIX. SO THIS IS A WAY THAT WE COULD BE ABLE TO PRIORITIZE OUR RESIDENTS WHO WE WILL BE SUPPORTING. SO PUT SOMETHING TOGETHER AS FAR AS BASED ON, YOU KNOW, WHAT THE GOALS WERE FOR THIS PROGRAM, WHICH INCLUDES THE GLORY OF THE GOVERNMENT SHUTDOWN IMPACT AS THE HIGHEST PRIORITY BECAUSE THAT'S WHAT THE PROGRAM WAS DEVELOPED FOR. AND THEN THE OTHER CATEGORIES WOULD INCLUDE INCOME LEVEL, HOUSING STABILITY AND RISK HOUSING VULNERABILITY THAT INCLUDES OUR ELDERLY HOUSEHOLD MEMBERS, DISABLED VETERANS AND OTHER THINGS. AND THEN FINANCIAL HARDSHIP EVENT. SO WITH ALL THOSE IN CONSIDERATION, WE DO RECOMMEND THAT WE AMEND THE ELIGIBILITY REQUIREMENTS TO EXPAND HARDSHIP QUALIFICATIONS, PRIORITIZE HIGH RISK HOUSEHOLDS, IMPLEMENT A STRUCTURED SCORING MATRIX WITH ONE THAT I PROPOSED. AND THEN SO THAT THESE ADJUSTMENTS WOULD INCLUDE WOULD IMPROVE PROGRAM ACCESSIBILITY, MAINTAIN OVERSIGHT AND ACCOUNTABILITY, AND ENSURE ASSISTANCE REACHES THE RESIDENTS MOST IN NEED. IF YOU HAVE ANY QUESTIONS. YES, WE DO HAVE COUNCIL MEMBERS WITH LIGHTS. I HAVE A QUESTION THOUGH, THAT I WANT TO SEE IF YOU CAN FRAME THIS INFORMATION THAT WE RECEIVED. SO I KNOW THAT COUNCIL APPROVED FUNDS FOR BOTH THE RENTAL AND MORTGAGE ASSISTANCE, BUT WE ALSO APPROVED ASSISTANCE WITH CT, I THINK SPECIFICALLY THROUGH CDBG FOR SNAP ASSISTANCE. YES. IS THAT DATA EMBEDDED WITHIN THIS REPORT? SO NO, THAT DATA IS KEPT SEPARATE. BUT WE DO HAVE THAT DATA. SO $21,000 TOWARDS SNAP BENEFITS. I THINK ONLY ABOUT 1200 1300 HAVE BEEN USED SO FAR. SPECIFICALLY FOR THAT. AND THEN IF YOU LOOK THROUGH YOUR, YOUR LIST OF APPLICATIONS, IF THERE'S A BLANK IN THEM, MONTHLY PAYMENT AMOUNT REQUESTED, THAT'S USUALLY BECAUSE THEY ONLY ASK FOR SNAP BENEFITS. SO THAT'S WHY THEIR INFORMATION WAS NOT INCLUDED THERE. SO BUT YOU'LL SEE EVERYTHING ELSE INCLUDES ALL OF THE OTHER ASSISTANCE REQUESTED BETWEEN RENT MORTGAGE AND UTILITIES ASSISTANCE AND UTILITIES AND SNAP. SO OKAY. THANK YOU. COUNCIL MEMBER PARKER PRESENTATION. I DO WANT TO ASK THE QUESTION ABOUT TSA WORKERS. IN OUR CRITERIA, WE SAY WE SAY JOB LOSS OR FURLOUGHED, BUT WE DON'T ACTUALLY SAY STILL WORKING, BUT UNDER UNDERPAID OR NOT PAID. HAS THAT QUESTION BEEN ASKED AS A PART OF THE CRITERION? IT HASN'T BEEN ASKED, BUT WE DID INCLUDE THAT WITH THE FINANCIAL HARDSHIP EVENT. IF THERE ARE REDUCTIONS IN HOURS OR WAGES WERE AFFECTED. SO THAT WOULD BE PART OF THAT SCORING MATRIX. IS THAT WHAT YOU'RE ASKING? YOU SAID REDUCTION IN HOURS. YES. THEY ACTUALLY DID HAVE. OH YOU SAID JUST OF THE WAGES. BECAUSE IF THEY DIDN'T GET PAID THEY DON'T HAVE ANYTHING. I MEAN THEY LITERALLY AREN'T GETTING PAID OR WEREN'T AT ONE POINT. I DON'T KNOW IF THAT INFORMATION CAN BE CAPTURED SOMEWHERE TO SEE HOW MANY TSA WORKERS DO DO WE HAVE IN THE CITY OF DE SOTO? AND THESE ARE JUST FOR DE SOTO, RIGHT? YES. YES, MA'AM. [00:20:03] OKAY. AND THEN MY OTHER QUESTION WAS WHEN IT WHEN IT COMES TO THE ACTUAL INFORMATION THAT'S HERE, IT SAYS ON HERE IT GIVES ALL OF THE DIFFERENT. IT SAYS THE NUMBER OF INDIVIDUALS PER HOUSEHOLD. DID THAT PLAY A ROLE IN THE DENIAL OF. NO. AT THIS POINT, IT DID NOT PLAY A ROLE IN THE DENIAL BECAUSE IT'S NOT PART OF THE, INCOME LIMITS, WHICH WHICH IS IDENTIFIED BY THE NUMBER OF HOUSEHOLD MEMBERS. SO THAT DID NOT PLAY A ROLE UNLESS IT WAS JUST FOR SNAP BENEFITS. THEN WE USE THE CDBG CRITERIA. OKAY. OKAY. ALL RIGHT. AND SO THE NUMBER OF HOUSEHOLDS WOULD PROBABLY BE IDENTIFIED UNDER THE HOUSEHOLD VULNERABILITY, WHICH WOULD INCLUDE HOUSEHOLDS WITH DEPENDENT CHILDREN. AND WE'D PROBABLY EVEN JUST PUT DEPENDENTS PERIOD, BECAUSE SOMETIMES THEY HAVE THEIR GRANDPARENTS AND STUFF. AND THIS WAS ACTUALLY SEPARATE FROM OUR UTILITY HELP THAT WE WERE GIVEN. RIGHT. AND I BELIEVE THAT UTILITY HELP WAS UNTIL DECEMBER 25TH. DID WE DO ANYTHING HERE FOR PEOPLE WHO MISSED THAT DEADLINE AND WAS ABLE TO, YOU KNOW, SOME OF THIS? WELL, THIS DOES INCLUDE UTILITY. SO IT WAS OKAY. YEAH. OKAY. THANK YOU I YIELD BACK. THANK YOU. COUNCIL MEMBER. DID I SEE YOUR LIGHT? YES, MA'AM. I BELIEVE COUNCILWOMAN PARKER ANSWERED OR ASKED MY QUESTION ABOUT THE UTILITIES. I WANTED TO KNOW WHAT DOLLAR AMOUNT DID WE SPEND WITH UTILITIES AND THE NUMBER OF PEOPLE WE WERE ABLE TO HELP WITH THAT? WITH THE UTILITIES? YES. OKAY. I DON'T HAVE THAT INFORMATION, BUT WE CAN GET IT. LACEY. YES, WE CAN GET THAT LATER. THANK YOU, MADAM MAYOR. SO BEFORE WE MOVE FROM THIS ITEM, I WANT TO MAKE SURE I HAVE CLARIFICATION ON WHAT STAFF IS RECOMMENDING, BUT ALSO WHAT WE NEED TO APPROVE OR GET A CONSENSUS ON. IS THAT CORRECT? MR. CITY ATTORNEY, CAN WE GIVE A CONSENSUS FOR THIS RECOMMENDATION TONIGHT SO THEY CAN TAKE ACTION ON IT? OKAY. SO YOU ALL ARE RECOMMENDING THAT WE DO EXPAND THE CRITERIA TO INCLUDE THOSE THAT MAY JUST BE HAVING A HARDSHIP OR OTHERWISE IN THIS, BUT IN ORDER TO QUALIFY THEM FOR AN AMOUNT OR SINCE YOU ALL HAVE CREATED THE MATRIX, OR ARE YOU ALL GOING TO CREATE THE MATRIX? SO THE MATRIX HAS BEEN CREATED. SO SUGGESTED MATRIX. BUT WE CAN AMEND THAT IF. DO WE HAVE. DO WE HAVE. IS THAT IN HERE? IS THIS THE MATRIX HERE? OKAY, SO THIS IS THE ACTUAL WHEN I'M THINKING MATRIX, I'M LOOKING FOR SQUARES. SORRY. OKAY, SO YES, YOU HAVE IT IN. WE HAVE IT BEFORE AS COUNCIL. I DON'T KNOW WHAT THE CRITERIA WOULD BE. AND SO, MADAM MAYOR, THIS INFORMATION. YES, MA'AM. WHAT YOU JUST SAID YOU WERE LOOKING FOR. CAN YOU SHARE THAT AGAIN? BECAUSE I DON'T THINK I HEARD YOU. WHAT I'M LOOKING FOR. WHAT WERE YOU LOOKING BECAUSE YOU WERE SAYING? IS THIS IT? AND THEN YOU SAID THE MATRIX. SO THEY'RE RECOMMENDING TO EXPAND. THE STAFF IS RECOMMENDING TO EXPAND THE OPPORTUNITY FOR OTHERS OTHER THAN THE FURLOUGHED EMPLOYEES, WHICH WAS THE ORIGINAL INTENT OF THESE FUNDS. THEY'RE WANTING TO EXPAND IT IN TERMS OF THE HARDSHIP QUALIFICATIONS. AND SO IN ORDER TO QUALIFY SOMEONE FOR THAT, IF THEY ARE NOT A FURLOUGHED EMPLOYEE OR OTHERWISE THEY THEY'VE CREATED THIS MATRIX. IT'S THE LAST SHEET. AND THAT'S WHAT I WAS LOOKING FOR. OKAY, GOOD. SO I'M ASKING COUNCIL TO JUST TAKE A QUICK MOMENT, IF WE COULD HAVE A FEW MOMENTS TO LOOK AT IT SO WE CAN UNDERSTAND WHAT THE CRITERIA. SO IF WE HAVE ANY QUESTIONS ABOUT THE MATRIX, THEN WE CAN ASK THOSE TO STAFF THIS EVENING. MADAM MAYOR, I DO HAVE A QUESTION. SO BASED ON THE MATRIX AND AND THANK YOU FOR THAT CLARIFICATION ON THE MATRIX. BASED ON THE MATRIX MATRIX, I SEE A LIST OF PEOPLE OR HOUSEHOLDS THAT HAVE CALLED IN OR TRIED TO GET ASSISTANCE. WOULD THE ACTUAL SCORING BE BASED ON THE TIMING OF WHEN THEY DID IT? OR ARE YOU JUST ARE WE GOING FIRST IN, FIRST OUT TYPE SITUATION. WELL, RIGHT NOW EVERYONE THAT'S APPLIED STILL FITS WITHIN THE BUDGETED AMOUNT, BUT I DID DO SOME VERY HIGH LEVEL SCORING IF YOU WANT TO HEAR THAT TOO. AS FAR AS LIKE IF FOR, FOR OUR, FOR OUR RESIDENTS WHO SCORED HIGHLY. SO THAT'S 12 POINTS OR MORE, WHICH IS A HIGH PRIORITY. WE HAVE ABOUT TEN RESIDENTS THAT MEET THAT ALREADY EVEN WITHOUT THE FURLOUGH SHUTDOWN IMPACT. AS FAR AS THE MIDDLE PART FOR THE MODERATE PRIORITY BETWEEN 7 TO 11 POINTS, THAT'S WHERE OUR MAJORITY IS. IT'S ABOUT 90 TO 100 OF OUR RESIDENTS FALL INTO THAT INTO THAT CATEGORY. JUST TO GIVE YOU AND DOCTOR WILLIAMS, I MISSED A LITTLE BIT OF THAT BECAUSE I WAS READING THE MATRIX. [00:25:06] SO YOU WERE SHARING THOSE THAT YOU HAVE ALREADY SCORED ACCORDING TO THIS MATRIX. IS THAT WHAT YOU'RE SHARING? YES. SO WHAT WAS CAN YOU CAN YOU. SO FROM THE LIST THAT YOU RECEIVED TONIGHT FROM OUR APPLICANTS SO FAR, ABOUT TEN WOULD BE ALREADY CONSIDERED HIGH PRIORITY EVEN WITHOUT THE GOVERNMENT SHUTDOWN. SO THEY DON'T QUALIFY FOR THOSE GOVERNMENT SHUTDOWN POINTS. BUT THEY'RE STILL AT ABOUT 15 POINTS WITH EVERYTHING ELSE. SO THAT'S ABOUT TEN. AND THEN IN THE MODERATE RANGE BETWEEN 7 AND 11 POINTS THERE'S ABOUT 90 TO 100 THAT COULD QUALIFY. AND SO HOW MUCH FUNDING WOULD THAT TAKE? IF WE LIKE TO SAY IF WE WERE TO CAPTURE ALL OF THOSE, LIKE THE ONES TO MEET BOTH GROUPS THAT YOU JUST NAMED ABOUT, HOW MUCH DO YOU KNOW HOW MUCH THAT IS? I DID NOT DO THAT CALCULATION, BUT I CAN JUST BASED ON NUMBERS, SPECULATING THAT OUT OF THE 109 DENIED THAT WAS TOTAL REQUESTED ABOUT $241,000. SO I WOULD, I WOULD VENTURE TO SAY IT MAY BE SOMEWHERE AROUND THE $200,000 FOR THAT, FOR THOSE TWO GROUPS. FOR. YES. FOR. OKAY. I WOULD LIKE TO KNOW WHAT THAT NUMBER WOULD BE. I GUESS I'M JUST TRYING TO ASK FOR FUNDING. VERSUS WHAT WE HAVE THAT'S BEEN PRIORITIZED. AND JUST KIND OF UNDERSTAND THAT I REALLY WOULD HONESTLY LIKE TO KNOW THAT NOW. SO THAT I CAN HAVE A FRAME OF REFERENCE FOR, FOR THE MONEY. AND MADAM MAYOR, WHILE SHE'S LOOKING AT THAT, MY I LIKE THE PIVOT. HOWEVER, HOW DO WE ADDRESS THOSE PEOPLE WHO KNEW THAT THEY HAD A NEED BUT DID NOT FALL WITHIN THE REALM AND DID NOT APPLY? I WORRY ABOUT THOSE PEOPLE THAT MIGHT HAVE HAD A NEED, BUT BECAUSE THEY WEREN'T GOVERNMENT, BECAUSE THEY WERE NOT GOVERNMENT, THEY DID NOT APPLY. THESE WERE THOSE THAT WERE TENACIOUS ENOUGH TO STILL APPLY. AND, AND, AND NOW IF WE PIVOT AND REWARD THEM, I WORRY ABOUT OPENING, OPENING OURSELVES UP TO THOSE PEOPLE WHO DID NOT APPLY BUT YET STILL HAD A NEED OR HAVE A NEED. YOU KNOW, SO I DON'T KNOW. DO YOU HAVE ANY RECOMMENDATIONS ON HOW HOW DO WE ADDRESS THOSE? IF YOU WOULD, THOSE SILENT PEOPLE WHO NEVER APPLIED BECAUSE THEY WERE NOT THEY WERE. THEY DID NOT FIT. AND SO BECAUSE THEY DID NOT FIT, THEY JUST FORWENT EVEN APPLYING. YEAH. WELL, I THINK YOU'RE ASKING FOR MY MY SUGGESTION. OKAY. SO I THINK IF WE STARTED OFF WITH LOOKING AT THE THE MATRIX AND THE POINT VALUE AND MAYBE EVEN START WITH THE HIGHEST POINTS MAYBE 13 ON UP OR 15 ON UP. SEE HOW MUCH THAT WOULD COST AND THEN HAVE ANOTHER WAVE OF APPLICANTS AND SEE IF, IF THEY MEET ANY MORE OF THOSE REQUIREMENTS AND THEN SEE HOW MUCH THAT WOULD COST AS WELL. OR IF I COULD MAKE A SUGGESTION, MAYBE WE. WE START THE. SINCE WE'RE OPENING IT UP AGAIN. WE OPEN IT UP AGAIN. WE START OVER ALMOST FROM STRENGTH, FROM FROM ZERO TO LATE TO LATE TO LEVEL THE PLAYING FIELDS. AND ANYONE WHO MIGHT BE IN NEED NOW REAPPLY. AND I KNOW THAT THAT SOUNDS LIKE A NIGHTMARE, BUT I WORRY ABOUT US. I WORRY ABOUT MISSING THOSE PEOPLE WHO MIGHT NEED WHO FOLLOWED THE INSTRUCTIONS AND DIDN'T APPLY. CORRECT. AND REWARDING THOSE WHO DID. YEAH, I JUST I WORRY ABOUT THAT. AND, AND THAT WOULD BE WHERE MY CONCERNS ARE. I'M ALL FOR HELPING THOSE. BUT IF WE'RE GOING TO HELP THEM, IT'S ALMOST LIKE WE'RE STARTING A NEW PROGRAM, RIGHT? YOU KNOW, THE OUR HEARTS WAS THERE, BUT MAYBE THE NEED WASN'T THERE YET. AND SO NOW WE'RE STARTING A NEW PROGRAM. AND MAYBE IF WE'RE GOING TO START A NEW PROGRAM, WE NEED TO ACTIVATE A NEW PROGRAM. OKAY, I WOULD I'M GOING TO I'M NOT PUSHING BACK ON YOUR COMMENTS. COUNCIL MEMBER. I WOULD NEVER DO THAT. THE ONLY THE ONLY TREPIDATION I HAVE ABOUT STARTING OVER. AND I'M NOT SAYING THAT THAT WHAT YOU'RE SUGGESTING IS NOT A GOOD IDEA. I ABSOLUTELY THINK THAT THERE'S THERE THERE MAY BE A NEED FOR THAT. HOWEVER, WHAT I WORRY ABOUT IS BECAUSE WHEN WE INITIALLY PUT THIS PROGRAM OUT, THE LANGUAGE WAS NOT THERE. THE LANGUAGE TO SAY, YOU MUST BE A FURLOUGHED EMPLOYEE. WE RECEIVED SEVERAL EMAILS FROM INDIVIDUALS WHO APPLIED AND THE LANGUAGE WAS NOT. LET ME SAY THE LANGUAGE WAS NOT CLEAR. RIGHT. IN TERMS OF THE WAY THAT IT WAS ADVERTISED. SO THAT'S WHY YOU DID HAVE SO MANY PEOPLE THAT DID NOT MEET THE QUALIFICATIONS THAT APPLIED. AND THEY FOUND OUT ONLY AFTER APPLYING THAT THERE WAS AN ADDITIONAL REQUIREMENT OF BEING A FURLOUGHED EMPLOYEE. AND SO MY TROUBLE WITH SAYING, OKAY, NOW Y'ALL GOT TO GO BACK OUT AND REAPPLY AGAIN IS WHEN PEOPLE ARE GOING THROUGH HARDSHIPS. [00:30:05] IT CAN BE VERY FRUSTRATING TO HAVE ALREADY APPLIED AND, YOU KNOW, AND HAVE YOUR INFORMATION AND IT'S ALREADY BEEN, WHAT, A MONTH OR TWO AT THIS POINT SINCE MANY OF THESE PEOPLE HAVE APPLIED AND TO KEEP THEM PENDING. AND THEN JUST TO TELL THEM, YOU GOT TO GO BACK AND DO IT AGAIN. THEN THERE'S A CHANCE THAT YOU WON'T GET IT THIS SECOND TIME AROUND. MY, YOU KNOW, AND AGAIN, MY, I'M, I'M, I'M LEADING WITH MY HEART RIGHT NOW VERSUS KIND OF JUST THE, YOU KNOW, DEPLOYING A PROGRAM AND TELL PEOPLE, YOU KNOW, THAT ARE ALREADY STRUGGLING AND THAT MAY BE FACING FORECLOSURE. AND LIKE YOU SAID, WE HAVE, WHAT, 10 OR 15 PEOPLE THAT ARE IN THAT CRITICAL STAGE. I WOULD HATE TO DO THAT. AND IF WE CAN GO AHEAD AND GET THEM HELP AND JUST KIND OF MAYBE EVEN LOOK AT WHAT WE MAY BE ABLE TO DO DEPENDING ON WHAT THAT NUMBER IS. THAT'S WHY I WOULD LIKE TO UNDERSTAND WHAT THAT NUMBER IS, BECAUSE IT MAY NOT BE WHAT I'M THINKING IN MY HEAD IN TERMS OF WHAT. SO THAT'S WHY I REALLY WANT TO UNDERSTAND WHAT IT IS. I JUST PEOPLE PIN LOOPS. I DON'T THINK THAT'S THAT'S GOOD FOR THE CITY'S IMAGE. I DON'T THINK THAT'S GOOD FOR ANYBODY'S HOUSEHOLDS RIGHT NOW, CONSIDERING ALL THINGS CONSIDERED. I'M ONE MEMBER OF THIS BODY. I WOULD SAY WITH THAT INFORMATION I CAN TOTALLY AGREE WITH IT. I DID NOT KNOW THAT THERE WAS A MISCOMMUNICATION OF THE QUALIFICATIONS. SO THAT EXPLAINS TO ME WHY THEY APPLIED IN THE FIRST PLACE. AND SO SINCE THEY TOOK THE INITIATIVE TO APPLY, THEN I CAN DEFINITELY COINCIDE WITH THAT INFORMATION. I DID NOT KNOW WHAT WOULD HAVE WHAT WOULD HAVE PROMPTED THEM TO APPLY IF IT WAS CLEAR THAT IT WAS FOR THIS PERSON OR THAT PERSON AND THAT PERSON. SO TOUCHE, I AGREE. IT WAS YEAH, IT WAS NOT CLEAR. YEAH, IT WAS NOT CLEAR. AND THAT'S AND WE, AND WE TOOK ACCOUNTABILITY AND OWN THAT, THAT IT WAS NOT CLEAR AND IT WAS PUT OUT AGAIN AND AGAIN. JUST TO, TO JUST THROW THAT INFORMATION OUT THERE. DOCTOR WILLIAMS, DID YOU GET THE NUMBERS? I GOT SOME ROUGH ESTIMATES. OKAY. SO THE TOP SCORING WITH 12 POINTS OR MORE ABOUT 18 TO 32,000 AND CITY MANAGER. MAJID WAS VERY CLOSE WITH ALL OF THE SEVEN POINTS OR HIGHER BETWEEN. MAYOR SO DOES THAT MEAN THAT NOBODY SCORED 0 TO 6 STANDARD? SO THERE WERE THERE WERE ABOUT 20 APPLICANTS THAT HAD A VERY LOW SCORE. OKAY. OR DIDN'T COMPLETE THEIR APPLICATION. TOOK THAT ACCOUNT TOO. SO YOU'RE SAYING THE HIGH PRIORITIES ARE LIKE ABOUT ROUGHLY $20,000? I COULD LIVE WITH FUNDING THOSE. AND THEN LIKE WE SAID, IF WE NEED TO RELAUNCH WITH THE CLARIFICATION OF THE CITY COUNCIL HAS NOW WENT BACK AND CHANGED THEM. HOWEVER, I WOULD LIKE TO SEE, AND I KNOW THAT I KNOW THAT THAT COULD POSE A BURDEN ON STAFF AND THAT'S NOT MY INTENT. HOWEVER, WHAT WOULD THE WINDOW BE? SO IF WE RELAUNCHED IT AND THEN WE PUT THE INFORMATION BACK OUT, SPECIFICALLY GOING OUT, PRIORITIZING THOSE INDIVIDUALS THAT ARE IN THIS SECOND GROUP AND BELOW, RIGHT. AND ANY OTHERS THAT MAY NOT HAVE CAUGHT IT THE FIRST ROUND. WHAT WOULD THAT WINDOW LOOK LIKE IN TERMS OF AN APPLICATION WINDOW PLUS THE TO FIGURE OUT IF THEY'VE BEEN APPROVED OR NOT? WHAT COULD THAT LOOK LIKE? LET ME ASK IT THAT WAY. SO BETWEEN A WEEK OR TWO, I MEAN THEY CAN THEY CAN FIND OUT THE THE FOUNDING TEAMS VERY FAST AND IN PROCESSING. SO THEY CAN DO THAT. THAT'S GREAT. WE HAVE ANOTHER TEAM. I KEEP FORGETTING WE HAVE ANOTHER TEAM. MISS DOCTOR MORGAN AND HIS TEAM ARE PROCESSING THESE APPLICATIONS. SO. COUNCIL. OH I SEE YOUR LIGHT. COUNCILMAN WATERS. DO YOU HAVE A QUESTION? YEAH, JUST A COMMENT. REALLY? SO I KNOW THE ORIGINAL INTENT WAS, YOU KNOW, THE FURLOUGHED WORKERS AND THEY WERE GOING TO GET THEIR JOB BACK AND GET BACK PAY, RIGHT. BUT WE WERE KIND OF SHAUN THEM UP UNTIL THEY GET BACK PAID. RIGHT. WELL, MY UNDERSTANDING TODAY, I MEAN, I THINK EXECUTIVE ORDER OR SOMETHING, TSA IS GETTING PAID. OKAY. SO I MEAN, I KNOW WE'RE CHANGING IT UP HERE AND I KNEW THAT WAS GOING TO HAPPEN. TUATIONS THAT HAVE NOTHING TO DO WITH WHAT WE ORIGINAL INTENT HERE. SO IT'S LIKE NOW YOU OPEN UP A CAN OF WORMS BECAUSE ONCE YOU START OPENING THAT CAN OF WORMS, THERE IS NO. THAT'S A BLACK HOLE. OKAY, SO MY POINT IS MY, MY QUESTION, I GUESS IS WE ALLOCATE A CERTAIN AMOUNT OF MONEY, RIGHT? FOR THE ORIGINAL INTENT. NOW YOU BRING IN ALL THIS OTHER STUFF IN, IT'S GOING TO EAT UP ALL THE MONEY. YES. DOES THAT MEAN THAT NOW WE'RE GOING TO DO A SECOND BATCH OF BIG MONEY, A THIRD BATCH? [00:35:02] I MEAN, WHERE DOES THIS IN. ONCE THE FUNDING IS IS IS DEPLETED, THAT'S WHEN IT ENDS. OKAY. IT'S SUBJECT TO AVAILABILITY OF FUNDS LIKE ANY OTHER PROGRAM. RIGHT. SO WE JUST WANT TO USE ALL THE MONEY NO MATTER WHAT. SURE, I GOT YOU. OKAY. THAT'S IT. I YIELD BACK. THANK YOU, COUNCILMEMBER PARKER. I HAVE ANOTHER QUESTION. AND, AND I, AND I HEAR WHERE MY COLLEAGUE IS GOING. BECAUSE I ALSO WAS GOING TO ASK THE QUESTION OF, YOU KNOW, AND I, AND I THINK I SAID THIS BEFORE THAT WE SIT WITH A SITUATION WHERE WE NEVER THOUGHT IN DECEMBER WE WOULD BE IN A SHUTDOWN AND THEN AGAIN IN JANUARY AND THEN AGAIN NOW HERE IN MARCH, KIND OF AN EXTENDED LOOK, LIKE CONSTANT TURMOIL, IF YOU WILL, FROM MY PERSPECTIVE. AND SO MY QUESTION IS, IS AND I'M JUST ASKING WHY CAN'T THE MONEY SIT THERE UNTIL WE FIGURE OUT WHETHER WE ARE IN A GOOD PLACE, BECAUSE WHILE THEY'RE GETTING PAID, THEY GOT PAID WITH AN EXECUTIVE ORDER. THERE ARE OTHER THINGS THAT ARE DOWN THE PIPELINE THAT WE DON'T KNOW IS GOING TO HAPPEN. ARE WE ARE WE SPENDING THE MONEY TOO QUICKLY OR MAKING THE DECISION TO EXPEND THE MONEY TOO QUICKLY? AND THEN WE'RE GOING TO END BACK IN THE SAME SPOT WITH PEOPLE NEEDING HELP WHO MIGHT HAVE A DIFFERENT SITUATION WHERE IT PERTAINS TO THIS GOVERNMENT. AND I JUST THAT WAS JUST A THOUGHT THAT I HAD. THANK YOU. SO COUNCIL, WE'VE HAD A CHANCE TO REVIEW THE MATRIX. HAS EVERYBODY HAD A CHANCE TO REVIEW IT? SO WE NEED TO GET OUR STAFF A CONSENSUS. WHAT MY SUGGESTION WAS TO GO AHEAD AND FUND THOSE. WAS IT 10 OR 15? IT WAS WITH THE HIGH PRIORITY. THE HIGH PRIORITY ONES THAT ARE PENDING. AND THEN WE WOULD RE RELAUNCH THE PROGRAM, AS COUNCILMAN BIRD SUGGESTED TO THOSE INDIVIDUALS WHO HAVE ALREADY APPLIED, THAT DIDN'T QUITE REACH THE HIGH PRIORITY AS WELL AS OPENING IT BACK UP. AND THEN WE WOULD ALSO STRESS, ACCORDING TO ONE OF US NOW WE COULD, WE COULD SPECULATE ALL DAY ABOUT WHAT'S TO COME LATER THIS YEAR, BUT WE HAVE AN IMMEDIATE ISSUE IN FRONT OF US NOW IN TERMS OF THE HELP THAT OUR RESIDENTS NEED. AND SO I WOULD LIKE US TO STAY FOCUSED ON THAT NEED VERSUS SPECULATING ABOUT WHAT MAY COME. AND SO THOSE ARE MY THOUGHTS, BUT COUNCIL WILL START. I'LL START TO MY RIGHT. COUNCIL MEMBER HUGHES GOOD EVENING. THANK YOU, MADAM MAYOR. I JUST WANTED TO TELL A STORY. I HAD A BROTHER IN LAW TO PASS WHILE I WAS ON MY WAY HERE, AND HIS COUSIN WAS JUST CHOMPING AND SAYING HE WAS DOING TOO MUCH. HE'S DOING TOO MUCH. HE NEEDED SOME KIDNEYS. AND I'M LIKE, WHAT WOULD YOU DO IF YOU WERE HIM? SO I LIKE TO ASK MY COLLEAGUES, WHAT WOULD YOU DO IF YOU WERE ON THE OTHER SIDE ASKING FOR THAT MONEY? AND WE HAVE TO GIVE IT TO GIVE IT. THANK YOU. AND, COUNCIL MEMBER HUGHES, WE'RE SO SORRY FOR YOUR LOSS. WE HAD NO IDEA. WE'RE SO SORRY FOR YOUR LOSS. THANK YOU. COUNCIL MEMBER NORTH. THANK YOU, MADAM MAYOR. AND THANK YOU SO MUCH FOR THE PRESENTATION AND LOOKING OVER THE CRITERIA. I AM WITH MOVING FORWARD WITH HELPING OUR RESIDENTS WITH THIS PROGRAM. THANK YOU. ARE YOU IN FAVOR OF COUNCIL MEMBER HUGHES? BOTH OF YOU? ALL. ARE YOU IN FAVOR OF GOING AHEAD AND IMMEDIATELY FUNDING THE HIGH PRIORITIES AND THEN RELAUNCHING OUT TO THE REST? THANK YOU. COUNCIL MEMBER. YES. COUNCIL MEMBER. THANK YOU AGAIN, DOCTOR WILLIAMS AND YOUR TEAM. I'M IN FAVOR FOR FUNDING THE HIGH PRIORITY PEOPLE WHO'VE WHO WENT THROUGH THE TROUBLE OF APPLYING AND THEN RELAUNCHING THE PROGRAM TO LEVEL OUT THE THE FUNDS, THE AVAILABILITY OF THE FUNDS. THANK YOU. COUNCILMAN. WHAT WAS THAT? OKAY. THANK YOU FOR THE PRESENTATION, DOCTOR WILLIAMS. I'M IN FAVOR FOR KEEPING IT THE WAY THE ORIGINAL INTENT. SO I'M NOT IN FAVOR FOR ANY ADJUSTMENTS TO IT. I'M A LITTLE I'M A LITTLE TORN. I HATE TO TELL YOU. NOT BECAUSE I DON'T LIKE TO HELP PEOPLE. BECAUSE I ALWAYS LIKE TO HELP PEOPLE. I DO SEE THE BLACK HOLE, THOUGH, AND THAT CAUSES ME PAUSE. ARE THERE ANY. JUST SO THAT I UNDERSTAND. JUST A QUICK QUESTION. FOR THESE PARTICULAR CRITERIA, ANY SAFEGUARDS THAT WE ARE PUTTING IN PLACE TO MAKE SURE THAT IT'S NOT, THERE IS NO ABUSE THAT CAN HAPPEN FROM HERE. ARE THERE ANY SAFEGUARDS IN PLACE? AS FAR AS LIKE CHECKING THEIR INCOME, WE HAVE A LOT OF STEPS THAT WE DO THAT WE GO THROUGH TO ENSURE THAT THE INCOME IS WHAT THEY WHAT THEY'RE ACTUALLY GETTING. WE CHECK THEIR PAY STUBS, WE CHECK THEIR BANK STATEMENTS, WE ASK FOR UP TO SIX MONTHS WORTH OF BANK STATEMENTS. [00:40:07] SO WE SEE THE HISTORY THERE. IT'S JUST ALL OF THE, THE PROCESSES THAT WE USE FOR OUR CDBG PROGRAM. WE'VE TRANSFERRED IT TO THIS PROGRAM TO ENSURE THAT PART IS IS SOLIDIFIED. AND THERE'S NO WAY THAT, YOU KNOW, AND IF WE CAN'T FIND IT, THEN THEY'RE PAUSED. AND WE HAVE TO BE ABLE TO EITHER GET LETTERS FROM THEIR EMPLOYERS OR ANY OTHER KIND OF DOCUMENTATION THAT SHOWS THAT THEY ARE TELLING US WHAT THEY WHAT THEY NEED FOR. OKAY. THEN WITH THAT IN MIND, I WILL GO FORWARD WITH THE HIGH PRIORITY FOLKS AND THEN HOPEFULLY WE WON'T HAVE THAT PART THAT I SAID TO HAPPEN. AND SO I'LL GO FROM THERE. THANK YOU, DOCTOR WILLIAMS. IT SOUNDS LIKE THE COUNCIL IS TO MOVE FORWARD WITH THE HIGH PRIORITIES IN THERE WILL RELAUNCH THE PROGRAM WITH THOSE NEW CRITERIA. SURE. THANK YOU. THANK YOU. AND DOCTOR WILLIAMS, ONE MORE QUESTION. WHEN WILL THE HIGH PRIORITY BE NOTIFIED AND FUNDED WITHIN THE WITHIN THIS WEEK. THEY ARE ALL READY. READY TO GO. THANK YOU. OKAY. THANK YOU, DOCTOR WILLIAMS. THANK YOU. COUNCIL. AT THIS TIME, MADAM CITY MANAGER MAJOR GODFREY ON THE PRESENTATION ON THE FOLLOWING CITY FINANCIAL WORK [c. Presentation on the following City Financial Work Session: Property Tax Considerations Homestead, Senior, Veterans, Disabled Public Safety Districts: Crime Control and Prevention District (CCPD) Fire Control, Prevention, and EMS District (FCPEMSD) Hotel Occupancy Taxes (HOT) Overview Texas Property Tax Reform and Transparency Act of 2019 (SB2) Brimer Bill Potential Bond Program FY2027] SESSION ITEMS. PROPERTY TAX CONSIDERATION. PUBLIC SAFETY DISTRICTS, HOTEL OCCUPANCY, HOT OVERVIEW. TEXAS PROPERTY TAX REFORM AND TRANSPARENCY ACT OF 2019, SB TWO, THE BILL AND POTENTIAL BOND PROGRAM FISCAL YEAR 2027. THANK YOU, MAYOR AND CITY COUNCIL MEMBERS. GOOD AFTERNOON EVERYONE. YOU'RE GOING TO HEAR SEVERAL PRESENTATIONS FROM STAFF RELATING TO FINANCIAL DISCUSSIONS INITIATED DURING OUR 2026 WINTER CITY COUNCIL RETREAT. AND OTHER TIMES AS WELL. AND TODAY'S WORK SESSION IS REALLY TO, TO DESIGN, TO BUILD ON THAT FOUNDATION BY PROVIDING ADDITIONAL CLARITY, CONTEXT, AND EDUCATION TO SUPPORT YOUR POLICY DECISIONS AND ALSO THE DISCUSSIONS THAT YOU WILL HAVE. AS WE CONTINUE PREPARING FOR THE 2027 BUDGET, IT'S CRITICAL THAT WE ALIGN ON BOTH OPPORTUNITIES AND CONSTRAINTS THAT SHAPES THE CITY'S FINANCIAL FRAMEWORK. AND KUDOS TO LAKITA AND HER TEAM FOR DOING AN OUTSTANDING JOB WITH THAT. THOSE TOPICS WE WILL COVER TODAY ARE INTENDED TO STRENGTHEN OUR UNDERSTANDING OF KEY REVENUE, RESOURCES, REVENUE SOURCES, STATUTORY LIMITATIONS, AND FUNDING TOOLS THAT DIRECTLY IMPACT OUR ABILITY TO DELIVER SERVICES AND IMPLEMENT CITY COUNCIL PRIORITIES. WE WILL DISCUSS THOSE SEVERAL ITEMS THAT OUR CITY SECRETARY MENTIONED. AND IN ADDITION, WE WILL PROVIDE AN OVERVIEW OF THE HUT TAX. AND IT'S ALSO STRATEGIC APPLICATION THAT WILL BE DELIVERED BY SYDNEY, AS WELL AS DISCUSS IMPORTANT LEGISLATIVE FRAMEWORKS SUCH AS SB TWO AND THE BILL. AND SO THE GOAL TODAY OF THIS SESSION IS REALLY NOT TO TAKE ANY ACTION, BUT TO ENSURE CITY COUNCIL IS WELL INFORMED AND PREPARED AS WE APPROACH KEY DECISIONS RELATED TO THE FISCAL YEAR BUDGET AND LONG TERM FINANCIAL PLANNING. SO WE WANTED TO HIGHLIGHT SOME CONSIDERATIONS THAT MAY IMPACT THE FISCAL OUTLOOK. SO FUTURE DISCUSSIONS CAN BE GROUNDED IN A SHARED UNDERSTANDING. AGAIN, WE HOPE THIS INTERACTIVE SESSION AND WE DEFINITELY WELCOME YOUR QUESTIONS AND FEEDBACK ON THE SESSION. LOOKING FORWARD TO HEARING YOUR THOUGHTS. AND WITH THAT, WE'LL START THE PRESENTATION. I BELIEVE THE FIRST ONE ALIGNED IS. PROPERTY TAX CONSIDERATION BY OUR FINANCE DIRECTOR, MISS LAKITA SUN. GOOD EVENING AGAIN. OKAY. AND LOOKING AT OUR PROPERTY TAX CONSIDERATIONS FOR FY 2027, THE PURPOSE IS TO REVIEW THE CURRENT TAX EXEMPTIONS THAT WE CURRENTLY HAVE IN PLACE AT THE CITY OF DESOTO, AND LOOK AT OTHER POSSIBLE EXEMPTIONS, PROVIDE SOME PRELIMINARY INFORMATION AND SEE IF WE HAVE A CONSENSUS TO TO BRING BACK FOR COUNCIL CONSIDERATION AT A LATER DATE. FOR THE CITY COUNCIL REQUESTED AT A PRIOR RETREAT TO COLLECT GUIDANCE CONSIDERING THE HOMESTEAD EXEMPTION AND ALSO A VETERAN'S EXEMPTION FOR FISCAL YEAR 27. OUR OVER 65 EXEMPTION IS AN EXEMPTION THAT WE CURRENTLY ALREADY HAVE. AND WHAT THAT EXEMPTION DOES IS REDUCES PROPERTY VALUE FOR THE RESIDENT WHO QUALIFIES BY $40,000. [00:45:09] ESSENTIALLY, WHAT IT DOES IS AFTER ASSESSED VALUES ARE CONSIDERED WHATEVER THEIR PROPERTY VALUE COMES BACK THAT AMOUNT, WE REDUCE THAT BY $40,000, WHICH ESSENTIALLY REDUCES THE CITIZENS PROPERTY TAX BILL. APPLICATIONS FOR THIS EXEMPTION ARE HANDLED THROUGH THE DCAD OFFICE. ALL PROPERTY TAX EXEMPTIONS ARE HANDLED THROUGH THE DCAD OFFICE. AS WE GO THROUGH AND LOOK AT THESE, WE'LL BE LOOKING AT WHAT WE CURRENTLY HAVE, WHAT WE MAY CONSIDER HAVING. BUT IT'S UP TO THE CITY TO ADOPT ANY NEW EXEMPTIONS VIA ORDINANCE, AND THEN THE CITIZENS WILL GO AND APPLY FOR THE APPROVED EXEMPTIONS THROUGH. THE DISABILITY EXEMPTION OF $25,000 IS ANOTHER EXEMPTION THAT WE CURRENTLY HAVE. AGAIN, IT REDUCES PROPERTY VALUE BY THIS AMOUNT FOR THE QUALIFIED APPLICANT. AND HERE WE'VE LISTED ALL OF THE APPLICATION REQUIREMENTS FOR THAT EXEMPTION AS WELL. THE HOMESTEAD EXEMPTION WE DO NOT HAVE THE HOMESTEAD EXEMPTION. THAT IS ONE THAT WE HAVE DISCUSSED ON SEVERAL OCCASIONS. LOOKING AT POSSIBLY BRINGING ON FOR THE CITY TO QUALIFY, PROPERTY OWNERS RESIDE IN THEIR HOME ON JANUARY 1ST OF THE YEAR. APPLICATION IS MADE AND CANNOT CLAIM A HOMESTEAD EXEMPTION ON ANY OTHER PROPERTY. ESSENTIALLY, SEVERAL HOMEOWNERS WOULD QUALIFY FOR THIS EXEMPTION IF IT IS SOMETHING THAT WE DECIDE TO PUT INTO PLACE. I JUST PULLED SOME PRELIMINARY INFORMATION. DALLAS COUNTY IN DALLAS COUNTY, 17 OF 31 CITIES OFFER THE RESIDENCE HOMESTEAD EXEMPTION. IN ELLIS COUNTY. TWO OF 20 CITIES CURRENTLY OFFER THAT EXEMPTION. ANOTHER EXEMPTION THAT THE CITY DOES NOT CURRENTLY HAVE IS THE VETERAN OR SURVIVORS OF A DISABLED VETERAN EXEMPTION. THE QUALIFICATIONS OF THIS EXEMPTION ARE LISTED HERE AS WELL. THERE WILL BE A DOLLAR AMOUNT, PERCENTAGE OR DOLLAR AMOUNT APPLIED TO REDUCE THE THE APPLICANT'S PROPERTY TAX ASSESSED EVALUATIONS BASED ON THEIR QUALIFICATIONS. FOR MOST OF THESE, THE FILING APPLICATION MUST BE RECEIVED BY APRIL 30TH AND AGAIN THE APPLICATION WILL BE THROUGH THE DCAD. SPECIFICALLY FOR THE HOMESTEAD EXEMPTION, WE DID WANT TO PROVE CITY REVENUES IN THE GENERAL FUND. AS WE KNOW, PROPERTY TAX IS MORE THAN 40 MILLION OF OUR GENERAL FUND REVENUE. ESSENTIALLY, WHAT EXEMPTION IS GOING TO DO IS REDUCE THE AMOUNT THAT IS DUE ON THE CITIZENS PROPERTY TAX BILL, AND CORRESPONDINGLY, IT WILL REDUCE THE AMOUNT OF PROPERTY TAX REVENUE RECEIVED AT THE CITY. WE LOOKED AT OUR PROPERTY VALUE IN DESOTO. OUR LAST REPORTED AVERAGE PROPERTY VALUE IS $307,585. OUR CURRENT TAX RATE IS 0.684934. THAT EQUATES TO A CURRENT TAX BILL FOR A HOME OF $307,000. HOMESTEAD EXEMPTION OF 1% WOULD GIVE US A SAVINGS OF $1.76. I'M SORRY, $1 AND 75% PER MONTH, AND THAT IS $21.07 A YEAR. SO THE PROPERTY OWNER, IF THE CITY WERE TO PRESENT HOMESTEAD EXEMPTION, WOULD SAVE $21.07 ANNUALLY ON THEIR PROPERTY TAX BILL. HOWEVER, CORRESPONDINGLY, ON THE CITY SIDE, OUR REVENUE FROM OUR ASSESSED VALUATION IS $40,442,556. THAT IS THE REVENUE WE RECEIVE WITH OUR CURRENT TAX RATE OF 0.68. THE AMOUNT OF REVENUE THAT WILL BE REDUCED IN THE GENERAL FUND AS A RESULT OF ADOPTING A 1% HOME EXEMPTION, WOULD BE TO INCLUDE AN EXAMPLE FOR 5%. SOME OF THE CITIES WITH LARGER REVENUE SOURCES, MORE SALES TAX AND THINGS LIKE THAT WILL GO FOR A LARGER EXEMPTION AMOUNT OF 5%, ANYWHERE BETWEEN 1 AND 5. A LOT OF THEM DID GO FOR 5% OR WORK THEIR WAY UP TO THE 5% FOR THE SAME. IF WE APPLY THE SAME CONCEPT OF $307,000 AVERAGE PROPERTY VALUE. YOU THEIR CURRENT TAX BILL, THE SAME $2,106 PROPERTY TAX BILL. THE SAVINGS PER MONTH $8.78. IF WE ADOPT A 5%, THAT SAVINGS EQUATES TO $105 IN A CALENDAR YEAR. FOR THE 5%. SO THE SAVINGS WILL BE $105.36 PER YEAR. [00:50:06] FOR PROPERTY TAX OWNER, WITH THE AVERAGE PROPERTY VALUE OF $307,000. HOWEVER, ON THE CITY SIDE, WE WILL REDUCE OUR REVENUE BY $2,022,128. SO THAT GIVES US A DIFFERENT PERSPECTIVE. EXAMPLES OF OF WHAT THAT HOMESTEAD EXEMPTION WOULD MEAN FOR THE CITY. IF WE DECIDE TO MOVE FORWARD WITH THE HOMESTEAD EXEMPTION, THE THE RESOLUTION WILL NEED TO BE APPROVED PRIOR TO APRIL 30TH. FOR THE EXEMPTION TO REFLECT ON THE PROPERTY OWNER'S NOTICE OF APPRAISED VALUE FOR TAX YEAR 2025 OCTOBER 1ST, 2026. THE EXEMPTION WILL TAKE EFFECT WITH TAX YEAR 2026 DURING FISCAL YEAR 2027, BECAUSE WHATEVER FISCAL YEAR WE'RE IN, WE'RE BILLING FOR THE PRIOR TAX YEAR. FOR THESE EXEMPTIONS, RESOLUTION MUST BE APPROVED AGAIN PRIOR TO APRIL 30TH. THE CITY WILL WORK WITH THE APPRAISAL DISTRICT, OUR PARTNERS OVER THERE, AND THEY WILL WALK THE COUNCIL THROUGH WHAT WILL BE NEEDED, THE APPLICATION PROCESS AND ALSO WALKING THE COUNCIL THROUGH THE ORDINANCE THAT WILL BE NEEDED TO APPLY THAT FOR OCTOBER 1ST OF 2026. THE EXEMPTION, AGAIN WILL TAKE EFFECT FOR TAX YEAR FOR THE TAX YEAR, BUT FOR FISCAL YEAR 2027, IF WE WERE TO MOVE AS QUICKLY AS APRIL 30TH ON ANY OF THESE AND THE DATES, THE DUE DATES, DON'T THEY NORMALLY STAY THE SAME? SO IF WE DECIDE TO NOT MOVE FORWARD THIS YEAR. LOOK AT A DIFFERENT TAX YEAR THAN THAT. APRIL 30TH WILL STILL BE APPLICABLE. DO WE WANT TO TAKE QUESTIONS NOW OR AT THE END? CITY MANAGER. COUNCIL. ARE THERE ANY QUESTIONS? I DON'T SEE ANY QUESTIONS, BUT I DO HAVE A QUESTION AND I'M NOT SURE IF YOU I KNOW YOU TOOK A INVENTORY OF THE CITIES AND YOU SAID DALLAS COUNTY AS WELL AS ELLIS COUNTY. DID YOU HAVE ANY DO YOU HAVE INFORMATION ON WHICH CITIES ARE MAYBE SURROUNDING DESOTO THAT HAVE A HOMESTEAD THAT ARE SIMILAR TO DESOTO IN SIZE AND DEMOGRAPHICS, SO FORTH, THAT ACTUALLY HAVE ONE? BECAUSE I KNOW CEDAR, I'M ALMOST POSITIVE CEDAR HILL DOES NOT. LANCASTER DOES NOT. AND I THINK DUNCANVILLE DOES NOT. BUT I WAS WONDERING, WERE THERE ANY ADDITIONAL THAT MAY COMPARE TO DESOTO THAT DO OUR IMMEDIATE CITIES LIKE LANCASTER. THE BEST SOUTHWEST, SOUTHWEST. THEY DO NOT HAVE IT. THEY DO NOT HAVE IT. OKAY. MR., DID YOU HAVE A COMMENT? WE WILL BE THE FIRST IN THE AREA IF WE WERE TO DO THAT. SURE. COUNCIL MEMBER. THANK YOU. THANK YOU, MADAM MAYOR. AND THANK YOU, MISS SUTTON, A QUESTION. SO WITH THE IDEA IF THERE IS A HOMESTEAD EXEMPTION WOULD WE DO AWAY WITH THE REDUCTION OF THE PROPERTY VALUE OF THE $40,000. THE PROPERTY REDUCTION OF 40,000 GO TO ALL HOMEOWNERS, CORRECT OR NO. I THINK YOU'RE SAYING OVER. YEAH. THE OVER 65 THOSE THAT THAT ARE OVER 65 AND THE HOMESTEAD EXEMPTION WOULD BE APPLIED TO TO WHAT DEMOGRAPHIC, WHAT GROUP. IT'S REALLY EASY TO APPLY FOR THE HOMESTEAD EXEMPTION. SO HERE THESE ARE LITERALLY THE THIS IS BASICALLY THE ONLY QUALIFICATION YOU, YOU KNOW, IF YOU RESIDE IN YOUR HOME JANUARY 1ST OF THAT YEAR AND YOU CANNOT CLAIM IT ON ANOTHER PROPERTY? YES. SO MORE RESIDENTS WILL WILL QUALIFY FOR THE HOMESTEAD IF WE DO THAT. SO IT'S NOT FOR ANYBODY THAT'S LIKE RENTING A PROPERTY OR ABSENTEE OWNERS LIKE THOSE PEOPLE CANNOT CLAIM IT ACTUALLY HAS TO BE THEIR HOMESTEAD TO GET IT. SO THAT MEANS THAT ALSO INCLUDES THOSE INDIVIDUALS THAT QUALIFY FOR THE OVER 65 AND FOR ANY OF THE OTHER EXEMPTIONS THAT WE CURRENTLY HAVE, CORRECT? YES. SO ANY AGE GROUP, ANY AGE GROUP, ANY FOR HOMESTEAD, FOR THE HOMESTEAD EXEMPTION. I'D LIKE TO SEE AN ANALYSIS OF WHAT WHAT REVENUES WE'RE MISSING WITH THE $40,000 EXEMPTION THAT WE'RE GIVING TO THOSE. THAT'S OVER 65. OKAY. VERSUS THE THE THE APPLIED RATE TO ALL HOMEOWNERS THAT COULD POSSIBLY FILE FOR THE EXEMPTION AND SEE THE BECAUSE WHAT I'M, I LIKE THE IDEA, BUT I'M WORRIED ABOUT WITH THE STILL EFFECT OF SB TWO AND WHAT THE PREEMPTIVE WORK OF, OF, OF AUSTIN. AND SO, AND, YOU KNOW, THE INTEREST RATES, THE DECLINE IN HOME THE DECLINE IN, IN, IN PEOPLE ABILITY TO TO PURCHASE HOMES BECAUSE THE INTEREST RATES AND ALL OF THOSE OTHER THINGS I'M WORRIED ABOUT THE TIMING, IF YOU WOULD. AND SO I WOULD LIKE TO SEE THE EFFECTS OF, OF, OF THE REVENUES THAT WE'RE MISSING. I THINK THAT WHEN WE IMPLEMENTED THAT THE 40,000, WE KIND OF DID A STAIR STEP APPROACH TO THAT. [00:55:05] WE TOOK IT UP. WE STARTED AT A NUMBER 5000, 5000. EACH YEAR, EACH YEAR, EACH YEAR. AND WE DID THAT AS SOMEWHAT A RELIEF TO TO OUR TO A CERTAIN DEMOGRAPHIC. SURE. AND SO, YEAH, I WOULD LIKE TO KNOW MORE ABOUT THAT BEFORE YOU'RE LOOKING AT ME. I'M SO SORRY. I'M LISTENING. HE'S LOOKING AT ME LIKE I'M. I'M THINKING. I'M THINKING. I'M COUNTING IN HIS HEAD. THAT'S WHAT HE'S DOING. I WOULD LIKE TO I WOULD LIKE TO KNOW THAT NUMBER BECAUSE I THINK THAT THE THE FUTURE IS HARD. THE GLOBE THE FUTURE IS A LITTLE CLOUDY RIGHT NOW. AND. AND I KNOW THAT IT WOULD BE A GREAT THING TO. DESOTO'S ALWAYS BEEN AT THE FOREFRONT OF OF INNOVATIVE IDEAS, BUT THERE'S PROBABLY A REASON WHY THESE OTHER CITIES HAVE NOT DONE IT, AND PARTICULARLY NOW. SO CORRECT. I KNOW THE WHEN WE WERE DOING THE RESEARCH ANALYSIS ON THE PART THAT WE DID, ONE OF THE CLOSEST CITIES WHO HAS IT IS GRAND PRAIRIE, BUT WE KNOW WHERE GRAND PRAIRIE IS. BUT IT LOOKS LIKE SIGNIFICANTLY DIFFERENT FROM OURS. AND THEY ALSO STARTED WITH THE VERY LIKE STAIR STEP APPROACH WITH WITH 1% AND KIND OF CLIMBED UP FROM THERE. BUT OF COURSE, YOU KNOW, OUR PENNY, YOU KNOW, A PENNY ON OUR TAX RATE IS $805,000, YOU KNOW, SO THAT THAT MAKES A DIFFERENCE. YOU KNOW, GRAND PRAIRIE IS, YOU KNOW, I DON'T I DON'T KNOW WHAT THERE IS. ACCOUNTS FOR, BUT THAT KIND OF LETS YOU KNOW, EVEN IF WE DID IMPLEMENT THE 1%, THAT WOULD BE MEANING 401,000 $400,000 LESS THAT WE'D BE BRINGING IN IN THE GENERAL FUND. AND THAT'S ONLY WITH THE 1%. AND THAT'S SAVING HOMEOWNERS ONLY $21 A YEAR AS WELL. SO. MAYOR AND COUNCIL. UNDER A VERY DIVERSIFIED ECONOMIC BASE YOU CAN GET AWAY WITH, YOU CAN GET AWAY WITH DOING SOME OF THE HOMESTEAD EXEMPTION AND OTHER EXEMPTIONS. WE ARE TAX HEAVY. IN THAT SENSE, OUR SALES TAX DOESN'T, DOESN'T COMPETE WITH THE PROPERTY TAX. SO IF, IF WE SHIFT THAT THOUGHT PROCESS TO THE, THE KIND OF THE HOMESTEAD AND OTHER OTHER OPPORTUNITIES THAT IS GOING TO REALLY IMPACT OUR BUDGET AND AS MISS SUTTON WAS SAYING, EACH PENNY WILL TRANSLATE INTO $805,000. IN IN OPPORTUNITIES OR IN LOST OPPORTUNITIES. AND ANYTHING THAT WE DO BASED ON ONE PERCENTAGE POINT TO GIVE CREDIT OR HOMESTEAD CREDIT, THAT'S ALMOST $405,000. SO IT'S, IT'S A LOT TO LOSE. AND THE MINIMUM, YOU KNOW, THE MINIMUM, IF THE CITY COUNCIL DECIDES IT'S GOING TO BE 5% OR 10% INCREMENTS IN THOSE INCREMENTS OF 5% INCREMENT IS ALMOST TWO, $2.2 MILLION, $2.1 MILLION. AND. AND WE ALREADY OFFER NOT A HUGE INCENTIVE, BUT IT'S AN INCENTIVE THAT'S OFFERED TO ALL PROPERTY OWNERS CURRENTLY FROM THE FROM LESS THAN. WHAT IS THAT NUMBER? DO YOU KNOW WHAT THAT ALLOCATED NUMBER IS? THAT THE. THERE'S TAX RELIEF EMBEDDED IN THIS SALES TAX. THE SALES TAX. SO YES, I DO. I ACTUALLY BROUGHT. AND THAT'S ACTUALLY A CONVERSATION WITH THESE DISTRICTS AS WELL. I CAN WAIT I CAN WAIT TO TO WE CAN WAIT. OKAY. YEAH. BUT JUST FOR REFERENCE, THE SALES TAX. OKAY. FOR QUICK REFERENCE, OUR OUR STATE SALES TAX 5%. AND THEN THE STATE KEEPS 6.25. WE GET THE OTHER 2% OF THAT 2% IS DIVIDED INTO FOUR CATEGORIES. THE CITY GETS A PORTION. THE DDC GETS 18.75%. THE PDC, THE PARKS DEVELOPMENT CORPORATION, GETS 6.25% AND THE 25% GOES TO PROPERTY TAX RELIEF. OKAY. THANK YOU. SO THAT'S THE BREAKDOWN THE WAY. AND THAT GOES TO EVERY CITIZEN, RIGHT? YES. ALL RIGHT. THANK YOU. I REITERATE WHAT YOU WERE SAYING. CITY MANAGER SO LIKE IN THIS EXAMPLE THAT YOU'RE GIVING US, SO LET'S SAY IF WE LOSE IN $400,000 IN THIS EXAMPLE, 1% OUT OF THE BUDGET PRETTY MUCH, THEN WE NEED TO BE DIVERSIFYING THE CONSIDER THIS TO EVEN THIS OUT, I WOULD THINK, BUT I AGREE WITH YOU, WE ARE VERY TOP HEAVY WITH THE RESIDENTIAL NEEDS VERY MUCH DIVERSIFY OUR TAX BASE COMING IN. [01:00:02] BUT THAT WAS MY LITTLE COMMENT. THANK YOU I YIELD BACK. THANK YOU. COUNCILMAN DID YOU DID YOU WERE YOU LOOKING FOR A RESPONSE OR ARE YOU JUST COMING? VERY GOOD. IS THERE ANY OTHER COUNCIL MEMBERS? ARE THERE ANY OTHER QUESTIONS? HEARING NONE, THANK YOU VERY MUCH FOR THE PRESENTATION. MADAM SECRETARY, CALL THE NEXT ITEM. MR.. MR.. CITY MANAGER. COUNCIL MEMBER. NEXT PRESENTATION IS BOTH CHIEFS, CHIEF. CHIEFS. AND IT'S ON THAT SAME SUB THAT WE'VE WE'VE TALKED ABOUT FOR THE TAX RELIEF. YEAH. GOOD EVENING. HOW'S EVERYBODY? FOR THE SAKE OF NOT BOUNCING BACK AND FORTH. I'M JUST GOING TO TALK AND CHIEF WILL BE HERE TO ANSWER ANY QUESTIONS. IF Y'ALL HAVE ANY POLICE RELATED. WE'RE GOING TO TALK ABOUT CRIME CONTROL PREVENTION DISTRICTS AND FIRE CONTROL AND EMS PREVENTION DISTRICTS. IF YOU ALL REMEMBER SOMETIME IN THE PAST, WE BROUGHT THIS UP TWO, THREE, FOUR YEARS AGO. I CAN'T REMEMBER EXACTLY WHAT IT IS, BUT THE PURPOSE OF THIS IS TO PROVIDE THE CITY COUNCIL WITH AN OVERVIEW OF THE NEED TO ESTABLISH THESE DISTRICTS, AND I WANT TO MAKE SURE WE'RE CLEAR. WE'RE NOT SAYING BY ESTABLISHING THESE DISTRICTS THAT WE'RE HAVING CRIME ISSUES OR WE'RE HAVING FIRE ISSUES, THAT'S NOT WHAT WE'RE SAYING AT ALL, BUT WHAT WE'RE WHAT WE ARE DOING IS LOOKING FOR CONSENSUS TO FURTHER EXPLORE THIS, THESE TWO SAFETY DISTRICTS TO EVALUATE LONG TERM WAYS TO MITIGATE THE RELIEF IN THE GENERAL FUND MONEY THAT WE BUDGET EVERY YEAR FOR THE ENTIRE CITY. DEPARTMENT, WHERE AM I AT? SO WITH COMMUNITY SURVEYS THAT WE DO, PUBLIC SAFETY IS ALWAYS RANKED AT THE TOP. AND AS WE CONTINUE TO GROW AS A CITY, THE DEMAND FOR POLICE, FIRE AND EMS CONTINUE TO ELEVATE. WE ALL KNOW THAT SOME OF THE CURRENT GAPS WE'RE FACING WITHIN THE POLICE DEPARTMENT, WE HAVE 88 SWORN OFFICERS AND YOU'LL SEE THAT NUMBER 120 OFFICERS. THAT'S NOT A NUMBER THAT WAS MADE UP. THAT'S A NUMBER BASED ON OUR POPULATION, THE SIZE OF THE CITY AND THE CALL VOLUME THAT OUR POLICE DEPARTMENT RUNS. YOU CAN SEE IN THE FIRE DEPARTMENT, WE HAVE 71 FIREFIGHTERS RIGHT NOW AND BACK IN 22. IF YOU ALL REMEMBER, WE DID A FIRE STATION FEASIBILITY STUDY THAT SAID WE WERE IN NEED OF TWO MORE FIRE STATIONS IN ORDER TO STAFF THOSE TWO FIRE STATIONS, WE WOULD HAVE TO HAVE AN ADDITIONAL 36 FIREFIGHTERS. AND THAT'S JUST TALKING PERSONNEL. WE HAVEN'T EVEN GOT INTO EQUIPMENT YET, AND OBVIOUSLY THAT COST A LOT OF MONEY. SOME OF THE KEY INVESTMENTS THAT WE'RE NEEDING POLICE, OBVIOUSLY THE STAFFING EXPANSION, THEY HAVE SPECIALIZED UNIT TECHNOLOGY TRAINING FACILITIES. AND ON THE FAR SIDE STATION FOUR IN THE NEAR FUTURE, ONE OF THE STATIONS THAT WERE IDENTIFIED THAT WE NEEDED. AND THEN EVEN FURTHER INTO THE FUTURE, FIRE STATION NUMBER FIVE, OBVIOUSLY, THAT REQUIRES EQUIPMENT, ENGINES AND AMBULANCES. AND THEN WE ARE AN ISO ONE FIRE DEPARTMENT. THERE'S NOT MANY CITIES IN THE STATE OF TEXAS THAT ARE THAT. AND TO MAINTAIN THAT, THIS IS PART OF WHAT WE NEED TO HELP WITH OUR RESPONSE TIMES AND THE DIFFERENT THINGS THAT WE DO. SOME OF THE KEY BENEFITS IS THERE'S NO IMPACT TO THE GENERAL FUND WITH PUBLIC SAFETY DISTRICTS. THIS TAKES FROM THE SALES TAX AND IT PUTS IT INTO EACH DISTRICT, ALLEVIATING THE MONEY THAT WE'RE SPENDING IN THE GENERAL FUND. SO FOR AN EXAMPLE, ONE OF MY FAVORITE EXAMPLES IS NEXT FISCAL YEAR. WE HAVE TWO AMBULANCES THAT WE ORDERED. AND WE'LL USE A FIRE DEPARTMENT ANALOGY. WE HAVE TWO AMBULANCES THAT WE ORDERED. WE'LL GET THOSE IN AND THOSE WILL COST US $1 MILLION. AND IT'S ALREADY IN OUR VEHICLE EQUIPMENT REPLACEMENT PROGRAM, WHICH COMES OUT OF THE GENERAL FUND. IF WE HAD THESE DISTRICTS IN PLACE, WE COULD REALLOCATE THAT MONEY FROM THAT DISTRICT TO PAY FOR THOSE AMBULANCES, THUS FREEING UP THAT MILLION DOLLARS TO EITHER REMAIN IN THE EQUIPMENT FUND OR TO BE REDISTRIBUTED IN THE GENERAL FUND, AS YOU GUYS SAW FIT. SO THAT WOULD FREE UP A LITTLE BIT OF MONEY IF WE HAD THESE DISTRICTS IN PLACE. SAME THING WOULD WORK WITH THE POLICE DEPARTMENT. IF THEY NEEDED EQUIPMENT OR CRUISERS, YOU COULD DO THE SAME SCENARIO TO FREE UP THOSE MONEY. IT WOULD OBVIOUSLY, IF WE GOT MORE POLICE OFFICERS OUT THERE, WE WOULD INCREASE OUR VISIBILITY IN THE NEIGHBORHOODS AND ON THE STREETS. WE COULD INCREASE OUR RESPONSE TIMES TO EVERY EMERGENCY. WE CAN MAINTAIN THAT ISO RATING THAT I TALKED ABOUT, WHICH IS VERY IMPORTANT. WE DON'T WANT TO LOSE THAT AT ALL. BUT IN CONCLUSION WE WANT TO BE PROACTIVE AS OUR CITY CONTINUES TO GROW AND WE CONTINUE TO BUILD, WE NEED TO MAKE SURE THE PUBLIC SAFETY INFRASTRUCTURE KEEPS UP WITH THAT SO WE CAN CONTINUE TO RESPOND TO THEM. EVERYBODY WAS TALKING ABOUT, RIGHT. SENATE BILL 3.5. WE KNOW THAT SENATE BILL TWO PUTS THAT CAP. AND SO WE'RE TRYING TO FIND OUT OTHER WAYS TO GENERATE REVENUE SO THAT WE CAN GROW THE POLICE AND FIRE DEPARTMENT, BECAUSE IT IS WE DO TAKE UP A MAJORITY OF THE OF THE BUDGET. AND WE REALIZE THAT AND WE'RE A BIG PORTION OF THAT. AND THIS WOULD BE A WAY THAT WE COULD REALLOCATE SOME OF THE GENERAL FUND MONEY TO GO BACK TO OTHER DEPARTMENTS OR OTHER NEEDS WITHIN THE CITY, WHILE WE CONTINUE TO EXPAND FIRE AND POLICE AS NEEDED, AS WE CONTINUE TO GROW. [01:05:04] THIS IS A THIS IS A VOTER APPROVED TYPE OF DEAL. SO KIND OF HOW THIS WORKS, I'M GOING TO SKIP OVER THIS LAST. THERE'S ALL THESE STEPS. I'M NOT GOING TO READ THEM TO YOU. BUT ESSENTIALLY WHAT HAPPENS IS YOU GUYS WOULD COME IN AND Y'ALL WOULD INITIATE THESE DISTRICTS BY ORDINANCE, YOU WOULD APPOINT A BOARD. TYPICALLY, THE BOARD IS THE CITY COUNCIL, BUT YOU CAN APPOINT WHOMEVER YOU WANT. WE HAVE TO DEVELOP BUDGETS FOR THIS. WE HAVE STRATEGIC PLANNING. THERE'S PUBLIC ENGAGEMENT. AND THEN ONCE YOU GET EVERYTHING SET ON THE AMOUNT OF THE SALES TAX THAT WE WANT TO MOVE OVER. THEN WE GO TO THE VOTERS AND THE VOTERS ULTIMATELY SAY YES OR NO. IF WE CAN DO THIS, THERE WAS A SLIDE. I PROBABLY WENT THROUGH IT TOO FAST WHERE WE LOOKED AT SOME CITIES AROUND US THAT DO THIS. CEDAR HILL DOES A CRIME PREVENTION DISTRICT FOR THE POLICE. LEWISVILLE IS ONE OF THE CLOSEST ONES AND THEY DO BOTH. THEY DO FIRE AND POLICE, AND THEY TAKE HALF A CENT OF THE SALES TAX, AND THEY GIVE A QUARTER OF IT TO FIRE AND A QUARTER OF A CENT TO POLICE. AND REMEMBER, THESE BOARDS ARE COMPLETELY SEPARATED AND DIFFERENT, RIGHT? THERE'S TWO DIFFERENT BOARDS, ONE FOR FIRE, ONE FOR POLICE. WE DON'T INTERMINGLE THE FUNDS. THEY'RE COMPLETE SEPARATE BUDGETS AND THEY FUNCTION SEPARATELY. ONE FOR FIRE AND ONE FOR POLICE. AND WITH. WE'LL ENTERTAIN ANY QUESTIONS YOU MAY HAVE. DO YOU NEED. WE ACTUALLY HAVE THE NUMBERS AS WELL THAT COUNCIL MEMBER ASKED FOR. CAN YOU SHARE. CAN YOU SHARE THOSE NUMBERS BEFORE WE TAKE QUESTIONS, PLEASE? SURE. IF WE LOOK AT THE THE QUARTER PERCENT THAT CHIEF MENTIONED, WE WILL BE LOOKING AT $9,000 THAT WE WOULD TRANSFER TO THE CCPD OR WHICHEVER DISTRICT THAT WE DECIDED TO DO. SO $439,000, OR IF WE DECIDED TO DO BOTH THE POLICE AND THE FIRE PORTION, WE WOULD JUST SPLIT THAT IN HALF INTO TWO. APPROXIMATELY 200,000 WILL GO TO ONE AND 200,000 TO THE OTHER. SO THAT'S ANOTHER ONE THAT IS IMPACTED, YOU KNOW, BY SALES TAX. YOU KNOW, I SAY LIKE CURRENTLY RIGHT NOW WE WOULD STILL OUR RECEIVE OUR CITY PORTION TO 2% OUT OF THE 8.25%, BUT WE WOULD DISTRIBUTE IT DIFFERENTLY. AND WE HAVE THE OPTION ALSO TO ADJUST THE REDUCTION OF PROPERTY TAX PORTION. IF WE DECIDED TO LOWER THAT AMOUNT AND THEN PUT A PORTION TO ONE OF THE CRIME DISTRICTS, WE COULD DO THAT AS WELL. THE LOWEST THAT YOU CAN GO IS AN EIGHTH OF A CENT, SO WE CAN START THERE. A LOT OF CITIES DO START WITH THE QUARTER OF THE PERCENT, AS CHIEF STATED. SO WE HAVE OPTIONS THERE. THE MAGE AS WE POSSIBLY CAN IF WE HAVE FUNDS IN A IN A PREVENTION DISTRICT OF THIS NATURE, WE CAN FINANCE REGULAR POLICE OPERATIONS, SPECIAL PROJECTS, OTHER NEEDS OUT OF THAT DISTRICT AND FREES UP MONEY IN THE GENERAL FUND FOR OTHER PROGRAMING. SO THE QUARTER PERCENT. ANY WAY TO GO BACK TO YOUR POINT, THE QUARTER PERCENT IS ABOUT 439,000. OKAY. I DO HAVE LIGHTS FROM MY COLLEAGUES WHO HAVE QUESTIONS. I WANTED TO ASK TO, TO THAT POINT. I KNOW YOU SAID CERTAIN CITIES START WITH GRADUALLY INCREASING. DOES THAT INCREASE REQUIRE VOTER APPROVAL OR IS THERE SOMETHING EMBEDDED WITH A MECHANISM? YEAH. FROM THE RESEARCH I DID, MOST EVERYBODY STARTS AROUND THE FIVE YEAR MARK. I MEAN, Y'ALL CAN CHOOSE WHATEVER, WHATEVER YOU'D LIKE. AND I KNOW LEWISVILLE FIVE YEARS I TALKED TO THAT FIRE CHIEF SPECIFICALLY. HE SAID THEY STARTED AT FIVE YEARS. THEY DID IT FOR FIVE YEARS. AND THEN THEY RE-UPPED IT FOR TEN BECAUSE EVERYBODY LOVED IT, BECAUSE THE THE FREEDOM IT GAVE THEM WITHIN THE GENERAL FUND. BUT THEY HAD TO GO BACK TO THE VOTERS, CORRECT? YES, MA'AM. DID IT AS WELL. CITY OF AZLE DID THE SAME THING, AND CITY OF FORNEY DID IT RECENTLY AS WELL. OH, WELL COUNCIL MEMBER PARKER, THANK YOU, MADAM MAYOR. THANK YOU FOR THIS PRESENTATION. I HAD A QUESTION ABOUT THE NOW NUMBER FIVE IS VOTER APPROVAL. THE FIVE THINGS BEFORE THAT WOULD PUT THIS ACTUALLY NEXT YEAR AS FAR AS VOTER APPROVAL OR IS THIS A SPECIAL ELECTION JUST FOR THIS? I DON'T KNOW THE EXACT TIME FRAME, BUT I WOULD SAY IT WOULD PROBABLY BECAUSE THERE'S A LOT OF WORK THAT'S GOT TO BE DONE ON THE FOREFRONT TO GET THIS READY TO GO TO THE VOTERS, PLUS PUBLIC OUTREACH AND ALL THAT STUFF. THERE'S A LOT OF THIS, AND THAT'S KIND OF WHY WE'RE BRINGING IT TO YOU. THIS IS SOMETHING THAT INTERESTS YOU WILL BEGIN THE WORK. WE DON'T WANT TO BEGIN THE WORK. IF THIS WAS SOMETHING Y'ALL Y'ALL WASN'T INTERESTED IN, BUT A LOT OF IT IS GOING TO BE COMING BACK TO Y'ALL AND GETTING Y'ALL'S DIRECTION AND HOW Y'ALL WANT, BECAUSE Y'ALL WILL BE SETTING A LOT OF THIS UP AT THE BEGINNING. AND THEN WE WILL GET INTO THE PUBLIC OUTREACH. SO YEAH, WE'D BE LOOKING AT NEXT YEAR PROBABLY. OKAY. AND SO THE OTHER QUESTION I HAD WAS WHEN WE'RE TALKING IN TERMS OF ONE THROUGH FOUR, [01:10:01] I SEE THE STRATEGY IN THE ORDER. BUT I DO WANT TO ASK FROM A PUBLIC PERSPECTIVE, SINCE THEY ARE THE VOTERS, THEY'RE THE ONES. WHY WOULD WE NOT HAVE THAT FIRST WITH THE COUNCIL ACTION? GIVE THEM THE OPPORTUNITY TO HEAR WHAT IT IS, PUT THEIR THOUGHTS INTO PLACE. AND I KNOW THIS IS COMPLETELY ME JUST THROWING A SUGGESTION OUT BECAUSE WE ARE TALKING ABOUT VOTING AND BEING ABLE TO UNDERSTAND FIRST WHY WE'RE DOING IT, WHAT WE'RE DOING, AND THEN HOW IT IMPACTS THEM. YEAH, I THINK THAT'S A GREAT IDEA, AND I THINK IT'S IMPORTANT TO LET THEM KNOW THAT WE'RE NOT INCREASING THEIR TAXES BY DOING THIS. WE'RE NOT MAKING THEM PAY ANY MORE MONEY FOR THIS. WE'RE JUST USING SALES TAX OVER HERE AND FREEING UP MONEY IN THE GENERAL FUND. SO AND IN THAT IN THAT PUBLIC ENGAGEMENT PIECE, I WOULD ALSO LIKE TO JUST SAY, AND I DID SEE THE AZO AND ALL THOSE OTHER ONES WHEN I DID MY RESEARCH. BUT I DO WANT TO SAY WHEN WE'RE TALKING IN TERMS OF SOME OF THE ITEMS THAT PEOPLE IN THE COMMUNITY ARE GOING TO WANT TO KNOW IS, HOW DOES THIS HELP THE CITY? HOW DOES THIS, YOU KNOW WHAT, WHAT MECHANISMS ARE WE PUTTING IN PLACE FOR ANY MANAGEMENT OF THESE FUNDS AND HOW THAT WORKS AND ANY MAYBE ANY POTENTIAL FOR OVERPOLICING, YOU KNOW, FROM HAVING A CRIME DISTRICT. I KNOW YOU SAID IT DIDN'T HAVE ANYTHING TO DO WITH THAT, BUT IN A PERSON'S MIND, THEY'RE SAYING, DOES THAT MEAN THERE'S GOING TO BE MORE POLICE OUT HERE DOING. AND SO SOME OF THOSE THINGS IN THE PUBLIC ENGAGEMENT PIECE, MAYBE GETTING AHEAD OF IT AS OPPOSED TO WAITING UNTIL NUMBER FOUR BEFORE YOU SAY, NOW WE'RE GOING TO CALL AN ELECTION. MAYBE WE NEED TO TALK ABOUT IT WELL BEFORE THEN. WELL THANK YOU. I YIELD BACK. SO I JUST WANT TO I JUST WANT TO CLARIFY A COUPLE OF THINGS. ONE, THESE ARE THE REQUIREMENTS. SO THE CITY COUNCIL CAN CHOOSE THE PRIOR TO THOSE REQUIREMENTS TO HAVE PUBLIC ENGAGEMENT IN ADDITION. BUT YOU HAVE TO HAVE ALL OF THOSE IMPLEMENTED TO MAKE SURE THAT YOU CAN, YOU CAN REALLY ESTABLISH THAT PUBLIC SAFETY DISTRICT. SO AGAIN, THE CITY COUNCIL CAN CHOOSE TO HAVE TO HAVE THE PUBLIC ENGAGEMENT FIRST, THEN THE CITY COUNCIL ACTION, THEN THE INITIAL GOVERNANCE. THE GOVERNANCE ITSELF CAN BE. THE CITY COUNCIL CAN BE THE. THE APPOINTEE GOVERNANCE STRUCTURE. THEY CAN BE AS TEMPORARY. OR THEY CAN. THEY CAN PRETTY MUCH BE THE KIND OF THE OVERLAYING GOVERNANCE FOR. FOR THE ENTIRETY OF THE PROGRAM, THAT'S UP TO THE CITY COUNCIL TO MAKE THOSE CHOICES. SO YOU WILL. YOU WILL HAVE. AS A CITY COUNCIL, YOU WILL HAVE FULL OF NOT ONLY UNDERSTANDING. IT JUST SOUNDS LIKE WE JUST NEED OUR OUR COMMERCIAL SALES TAX, INDUSTRIAL SALES TAX AND ALL THAT. RIGHT? SO GET YOU ALL MORE MONEY IS THAT THAT'LL WORK WITH THE DISTRICTS, RIGHT TO GET YOU. WHATEVER YOU NEED. RIGHT? THAT'S RIGHT. OKAY, I YIELD BACK. MADAM MAYOR, CAN YOU MAKE A CLARIFICATION? I WANT TO MAKE A CLARIFICATION. THIS ITEM CAME BEFORE THE CITY COUNCIL BACK IN 2022, I BELIEVE. SO ALL THE CREDIT GOES TO THE MAYOR AND THE CITY COUNCIL FOR THINKING THE ITEM. I JUST WANT TO MAKE SURE THAT WE FOLLOWED UP AND AT THE DIRECTION OF THE MAYOR AND THE CITY COUNCIL. SO I'D LOVE TO TAKE CREDIT. AND THE TEAM, I'M SURE, BUT IT'S IT'S ALL THE CITY COUNCIL. THANK YOU. MAYOR AND CITY COUNCIL. FORMER CITY COUNCIL. THANK YOU. I SEE NO MORE LIGHTS. THANK YOU. CHIEF AND CHIEF AND CHIEF. THANK YOU, CHIEF SQUARED. AS A MATTER. AS A MATTER OF INFORMATION. MAYOR. FOR THESE ITEMS. I DID SEND AN EMAIL EARLIER TO THE CITY MANAGER TO ASK. THIS INFORMATION WASN'T OUT HERE. OUT FOR THE MEETING. IS THERE A POSSIBILITY WE CAN HAVE THAT ONLINE SO THAT THE PUBLIC CAN ACTUALLY VIEW THIS BECAUSE THEY DON'T HAVE THIS INFORMATION? THE PRESENTATION WAS NOT ATTACHED. IS THAT WHAT YOU'RE SAYING? YEAH, ABSOLUTELY. YEAH. THANK YOU. THANK YOU. THE NEXT ITEM, CITY SECRETARY, DID YOU HAVE ANY THING FOR NUMBER THREE OR CAN I CALL IT OUT? THE CONVERSATION. GOOD EVENING, MAYOR. COUNCIL. JUST FOR A LITTLE BIT. WE ARE GOING TO TALK ABOUT HOT FUNDS, HOTEL OCCUPANCY TAX FUNDS. THE PURPOSE OF THIS PRESENTATION IS JUST TO PROVIDE YOU AN UPDATE AND AN OVERVIEW OF HOW THE FUNDS ARE USED TO PROMOTE TOURISM HOTEL INDUSTRY WITHIN THE CITY. THERE IS NO ACTION TO BE TAKEN. IT'S JUST TO PROVIDE ADDITIONAL INFORMATION AS REQUESTED FROM THE WINTER RETREAT. SO CURRENTLY, AS OF RIGHT NOW, THERE ARE 11 HOTELS IN DE SOTO. TWO OF THEM ARE CURRENTLY DELINQUENT. THAT'S THE HOLIDAY INN EXPRESS AND THE BAYMONT BY WYNDHAM HOTEL. WE ANNUALLY ABOUT 1.4 MILLION IS WHAT WE SEE IN REVENUE. IN TERMS OF WHAT GOES INTO THE HOT FUNDS AND THE ELIGIBLE USES ARE ADVERTISING, MARKETING, TOURISM, TOURISM RELATED EVENTS, HISTORIC PRESERVATION, THE NANCE FARM, YOUR ARTS AND CULTURAL PROGRAMS, VISITOR FACILITIES. SPORTING EVENTS WHERE THE MAJORITY OF THE ATTENDEES ARE OUT OF TOWN, VISITORS AS WELL AS SIGNAGE. [01:15:06] AND SO JUST AS A LITTLE BIT OF BACKGROUND FOR THIS FISCAL YEAR, WE ARE PROJECTED WHEN THE FUND BALANCE IS UNAUDITED AT THE BEGINNING OF THE FISCAL YEAR WAS $7.7 MILLION. THE REVENUE THAT IS SCHEDULED TO BE BROUGHT IN WAS 1.4 MILLION, WITH THE EXPENDITURES OF 1.1 MILLION, AS WELL AS THE UNAUDITED ENDING PROJECTION OF $7.9 MILLION. I CAN GO AHEAD AND SHARE WITH YOU ALL THAT. AS OF TODAY, I PULLED THE NUMBERS. WE'RE SITTING CURRENTLY IN REVENUE OF $460,750. WE ARE ON TRACK BECAUSE NORMALLY WHEN IT COMES TO THE THE REVENUE BEING RECEIVED FROM THE HOTELS AND SHORT TERM RENTALS, IT'S ABOUT A TWO MONTH LAG. AND WHEN WE SEE THEM ACTUALLY COMING IN. AND THEN IN TERMS OF EXPENDITURES, WE'RE SITTING RIGHT AT $167,000. SO THOSE THAT ARE PER SE RECIPIENTS OF THE, AS OF RIGHT NOW, WE ARE NOT ABLE TO USE HOT FUNDS ON THE ARK. IT'S OUR GOAL IS THAT AS WE CONTINUE LOOKING AT TOURISM, WE BUILD OUT A STRATEGIC TOURISM PLAN FOR THE CITY IS THAT WE CAN BEGIN MARKETING THE FACILITY AS A REGIONAL DESTINATION SO THAT WE CAN BEGIN USING HOT FUNDS. LAST YEAR, WE ACTUALLY WORKED WITH TEXAS HOTEL LODGING ASSOCIATION TO ACTUALLY FORM A BILL WITH SENATOR ROYCE WEST THAT WOULD ALLOW US TO USE HOT FUNDS AS MARKETING. YOU HAVE TO BE. THE CITY HAS TO BE WRITTEN INTO IT. UNFORTUNATELY, IT DIED IN THE CHAMBERS BEFORE IT MADE IT THROUGH. SO WE'RE GOING TO BE PUSHING THAT AGAIN FOR THIS 2027 LEGISLATIVE LEGISLATIVE SESSION TO GET HOPEFULLY, THAT WE CAN GET IT IN PLACE BY SEPTEMBER 1ST OF 2027. ALSO, WHAT'S INCLUDED IS NANCE FARM, THE CORNER THEATER, OUR SPORTS COMPLEXES, AS WELL AS CITY AND REGIONAL FESTIVALS. SO OUR GOAL IN MIND IS TO REALLY BEGIN MARKETING WHAT THE CITY CURRENTLY HAS AND BE ABLE TO PUT IT OUT THERE ON THE MARKET AND BEGIN TO INVITE IN THOSE WHO CAN HAVE CONFERENCES HERE, THOSE WHO CAN HAVE SWIM MEETS HERE, THOSE THAT CAN HAVE EVENTS HERE TO REALLY BRING IN THAT REVENUE, THAT WILL DRAW ADDITIONAL REVENUE TO THE HOT FUNDS SO WE CAN CONTINUE TO USE IT. AND SO WHAT WE'RE PROPOSING FOR 2027 IS A TOTAL EXPENDITURE OF $2.75 MILLION. 2 MILLION WOULD BE ALLOCATED TO NANCE FARM. SO LIKE I STATED EARLIER, NORMALLY WE'RE LOOKING AT 1.1 1.2 MILLION IN EXPENDITURES. WE WOULD BE REQUESTING USAGE A LITTLE BIT OF THE FUND BALANCE FOR PHASE ONE OF NANCE FARM. 210,000 WOULD BE GOING TOWARDS THE PROMOTION AND ADVERTISING CITY WIDE 225,000 FOR ARTS PROMOTION CITYWIDE, 200,000 FOR WAYFINDING AND SIGNAGE. SO ONE OF ONE OF WHAT WE CAN DO WITH THE FUNDS IS DIRECT INDIVIDUALS USING SIGNAGE. SO WHEN YOU THINK ABOUT THE SIGNS ON I-35 WITH THE HOTELS, THE RESTAURANTS WE COULD USE THAT. WE ALSO HAVE THE OPPORTUNITY TO USE DIGITAL SIGNAGE THAT WAY, WHERE WE'RE DIRECTING VISITORS TO BE COMING TO OUR DIFFERENT FACILITIES AND OUR DIFFERENT VENUES. AND THEN 115,000 FOR BRANDING AND TOURISM EFFORTS. AND SO WITH THAT, I'LL OPEN THE FLOOR TO ANY QUESTIONS. THANK YOU, COUNCILMEMBER PARKER. THANK YOU, MADAM MAYOR. THANK YOU FOR THIS PRESENTATION. CAN WE GO BACK A COUPLE OF SLIDES? I THINK YOU HAD I'M SORRY. GO FORWARD ONE, JUST ONE SLIDE. I'M TRYING THIS ONE RIGHT HERE. WHEN WE'RE TALKING ABOUT THE AAC, YOU SAID THAT IT WOULD NOT IF THAT BILL IS BROUGHT BACK AND THEN PUSHED FORWARD TO PASSING, IT WOULD NOT TAKE EFFECT UNTIL SEPTEMBER OF 2027. YES. AND THAT WOULD BE FOR US TO SPECIFICALLY MARKET SPECIFIC EVENTS THAT ARE BRINGING IN TOURISM. NOW, IF WE WERE TO DO A THREE DAY EVENT AT THE ARK, WE CAN USE HOT FUNDS BECAUSE THAT'S A THREE DAY, THAT'S A MULTI-DAY EVENT. BUT IF WE WERE TO SAY, HEY, WE'RE HAVING A SWIM MEET AT THE PARK, AT THE ARK, AND THAT'S HAPPENING OCTOBER 1ST 2 OR 2026, WE'RE NOT ABLE TO USE THAT RIGHT NOW. SO LIKE FOR A TOURNAMENT, CORRECT TOURNAMENT THAT GOES SPECIFIC TOURNAMENT. SO IF IT WAS TOURNAMENT A, B, C, THAT'S GOING TO BE HOSTED AT THE ARK. WE COULD NOT USE HOT FUNDS FOR THAT, OR EVEN IF IT WAS BEING HOSTED AT THE RECREATION CENTER. AND IT'S A MULTI DAY SPECIFIC TO A SPORTING EVENT. BUT WHEN WE'RE HAVING THE EVENTS THAT ARE RELATED TO ARTS AND WHEN THEY WHEN WE CONSIDER ARTS, THAT'S YOUR SEEING, THAT'S YOUR PERFORMANCE. I KNOW IT'S A, IT'S A BIT TRICKY, BUT IT VERY MUCH IS. AND, AND I KNOW THAT WE'RE TRYING TO DO WHATEVER WE CAN, BUT I DO WANT TO ASK ABOUT WHEN WE SAID TO DESOTO SPORTS COMPLEXES. THE AAC SITS SOMEWHAT IN A SPORTS COMPLEX, AND SO NOT THE AAC ITSELF, BUT THE LAND AROUND IT FOR THAT PARTICULAR PIECE. ALL OF WHAT'S IN HERE IS PROPOSED FOR 2027. [01:20:05] WHAT ABOUT 2026? HAVE WE ALREADY DONE SOME OF THAT MARKETING FOR THOSE EVENTS THAT ARE HAPPENING AROUND THE AAC? YES, WE HAVE. SO WE WORK PRIMARILY WITH OUR PARKS AND RECREATION, OUR MARKETING COORDINATOR, TO GET THOSE EVENTS OUT AS IT'S RELATED TO MULTI-DAY FESTIVAL I'VE WITH JULY 4TH COMING UP. WE'RE USING FUNDS BECAUSE THAT IS A THREE DAY EVENT. BUT WHEN IT COMES TO THE SPORTS COMPLEXES AND PRIMARILY WHEN WE TALK ABOUT MARKETING IT, OUR GOAL IS TO GET OUT IN FRONT OF THOSE TOURNAMENT VENDORS WHO ARE LOOKING TO BRING THEIR, THEIR TOURNAMENTS TO OTHER CITIES OR TWO ADDITIONAL CITIES. THAT'S WHAT WE'RE REALLY LOOKING AT IN TERMS OF AS WE MOVE FORWARD WITH BUILDING A STRATEGIC TOURISM PLAN, IS TO REALLY LOOK AT WHAT IS THE NEXT YEAR, TWO YEARS, FIVE YEARS LOOK LIKE WHAT CONFERENCES ARE OUT THERE? BECAUSE THERE'S PLENTY OF THEM WHERE WE CAN CREATE THE MATERIAL WITH OUR MARKETING, WITH OUR COMMUNITY SERVICES TEAM AND HAVE THAT ON HAND AND SAY, HEY, THIS IS WHY YOU SHOULD COME TO DESOTO. OKAY. AND THE LAST QUESTION I HAVE IS FROM THE PERSPECTIVE OF DID WE GET AHEAD OF FIFA AND THEM ACTUALLY UTILIZING OR BEING ANYWHERE IN OUR VICINITY AS THEY ARE BRINGING PEOPLE IN TO THESE AREAS FOR FIFA, FOR OUR HOTELS AND THINGS LIKE THAT? DO WE GET A CHANCE TO UTILIZE ANY OF THOSE HOT FUNDS? SO THEY'RE ONE OF THE HOTELS THAT'S DELINQUENT IS, IS ONE OF THE HOTELS. WE ARE IN CONVERSATIONS WITH THOSE FROM FIFA IN REGARDS TO SOME THINGS THAT CAN GO ON IN THE BACKGROUND. AND WE'RE ALSO PLANNING ON HOSTING A FIFA WATCH PARTY ON THE THIRD. OKAY, SO YES, HOPEFULLY THAT ANSWERS YOUR QUESTION. IT DOES. THANK YOU. BUT KEEP IN MIND COUNCIL MEMBER THIS THIS SNAPSHOT IS FOR THE 2027 BUDGET. WE WOULD HAVE. WE WOULD HAVE ALREADY HAD THE FIFA EVENTS. WE WOULD HAVE ALREADY PARTNERED WITH THEM ON OTHER THINGS. YOU KNOW, WE HAVE WE HAVE ALSO THE BMX THAT THAT SYDNEY AND DOCTOR BUFORD ARE WORKING ON. SO ALL OF THOSE ARE HAPPENING IN, IN 20, IN 2026, FISCAL YEAR 2026. WHEN WHEN THIS THE, THE, WHAT YOU SEE HERE IS A SNAPSHOT OF 2027, WHAT YOU'RE GOING TO SEE IN THE BUDGET OF 2027. OKAY. SO, BUT, BUT THE REASON I'M ASKING THAT QUESTION. SO YOU GO, CAN YOU GO BACK ONE MORE SLIDE, PLEASE? WHERE WE'RE TALKING ABOUT THIS, THIS IS ALL 2026. SO THE THINGS THAT I JUST SPOKE OF SHOULD BE HERE IN THESE DOLLARS. YES. OKAY. YES. SO BUT YOU WON'T SEE YOU IN THE PROJECTIONS. YES. OKAY. ALL RIGHT. THANK YOU. I YIELD BACK. THANK YOU. COUNCILMAN. THANK YOU, MADAM MAYOR. SO A COUPLE THINGS. SO WE HAVE WHAT YOU SAID, 11 HOTELS, RIGHT? CEDAR HILL HAS WHAT, TWO. I THINK THAT WHAT IT IS. SOMETHING LIKE THAT. PHEW. YEAH. LANCASTER COUPLE, WHAT HAVE YOU. SO THE WHOLE REASON WHY WE EVEN HAVE ALL THESE HOTELS, BECAUSE ALL THE TOURNAMENTS AT PARKS AND REC HAS BROUGHT US. SO THANK YOU ALL. PARKS AND REC. SO ANYWAY, SO IT SOUNDS LIKE YOU KNOW, WITH ALL THESE HOT FUNDS NOW WE GOT OKAY, NOW WE HAVE SOME, YOU KNOW, TOURISM THINGS WITH OUR, YOU KNOW, WE'RE GETTING THAT GOING. SO IT SOUNDS LIKE NEXT STEP HERE IS WE NEED THE CVB. OKAY. HOT FUND WILL COVER CVB. SO ANYWAY THAT'S MY $0.02 ON THAT, BUT THANK YOU ALL PARKS AND REC FOR EVERYTHING I'VE DONE TO GET US THIS FAR. THANK YOU. THANK YOU. OH! YOU'RE BACK. THANK YOU, MISS ELLIOT. I DON'T THINK WE HAVE ANY OTHER LIGHTS OR QUESTIONS THIS EVENING. THANK YOU FOR YOUR PRESENTATION AND KEEP UP THE GOOD WORK. THANK YOU. THANK YOU. ALL RIGHT. WE WILL HAVE THE NEXT ITEM. MR.. CITY MANAGER. MAYOR. I DON'T KNOW WHY I GOT STUCK WITH THIS ITEM OR DEPUTY CITY MANAGER SNUCK IN MY NAME ON IT. THIS IS THIS IS THE IMPLICATION ON THE PROPERTY TAX REFORM ALSO KNOWN AS SB TWO. THIS IS REALLY AN INFORMAL JUST PURPOSE TO KIND OF SHOW THE CITY COUNCIL WHAT THE IMPACT IS AND WHAT WE'RE CONSIDERING FOR THE 2027 BUDGET PROCESS IMPLICATIONS ARE, AS YOU KNOW, ARE GREAT STARTED IN 2019. THIS IS GOING TO BE A CHALLENGE TO US OR TO BE A CONTINUED CHALLENGE TO US. BUT IT ALSO GIVES US THE OPPORTUNITY NOT ONLY TO DIVERSIFY OUR ECONOMY AND BUT ALSO TO BE REALLY FRUGAL, IF YOU WILL, AND BE VERY CAREFUL OF WHAT THE EXPENDITURES ARE, ESPECIALLY AS RELATING TO THE GENERAL FUND. GO AHEAD. THESE ARE SOME OF THE CONSTRAINTS THAT I'M SURE YOU'VE HEARD BEFORE. [01:25:01] SO I'M NOT GOING TO REPEAT MYSELF. GO AHEAD. AGAIN, INFRASTRUCTURE GAP CONTINUES TO BE A PROBLEM. AND FUNDING FOR THAT COMMUNITY IMPACT AND LONG TERM PLANNING. AND, BUT I WANT TO PREFACE THIS AND SAY AGAIN TRACY AND NALA AND HER TEAM HAVE DONE A MASTERFUL JOB IN CREATING AND PRESENTING A BALANCED BUDGET TO US FOR THE PAST, I DON'T KNOW HOW MANY YEARS, 14, 20 YEARS, 30 YEARS. THEY'VE DONE A FANTASTIC JOB OF THAT ONE. SO WE'RE AHEAD OF THE CURVE. WE'RE, WE'RE, WE'RE FINANCIALLY IN GREAT POSITION. BUT YOU KNOW, THE CONSTRAINTS WILL CONTINUE TO RISE AS, AS OUR FUNDING WILL, WILL DECLINE SLOWLY AND SURELY. AND WE'RE GOING TO GET CAUGHT IN THIS UNLESS WE START FORECASTING WHAT WE REALLY NEED TO DO. GO AHEAD. THOSE ARE SOME OF THE MITIGATING STRATEGIES THAT WE'VE ALREADY IMPLEMENTED OR HAVE BEEN IMPLEMENTED IN THE PAST. SO WE'RE LOOKING AT PRIORITY BASED BUDGETING. WE'RE DOING THE PRIORITY BASED BUDGETING AS A, AS AN INTRODUCTION THIS YEAR. WE'RE DOING IT SPECIFICALLY FOR THE SUPPLEMENTAL REQUESTS. BUT WE'RE GOING TO GO FULL FLEDGE HOPEFULLY WITH THE PRIORITY BASED BUDGETING. AND NEXT YEAR WITH THE ENTIRE BUDGET PARTNERSHIPS AND GRANT FUNDING, YOU WERE AWARE OF THE HONORABLE JASMINE CROCKETT GIVING US $3 MILLION FOR OUR PUBLIC FACILITY NEW PUBLIC FACILITY, FIRE STATION FOUR, AS WELL AS THE SUBSTATION. WE HAVE OPPORTUNITIES ALSO. WE'RE WORKING WITH HER OFFICE RIGHT NOW. WE HAVE OPPORTUNITIES FOR ADDITIONAL FUNDING FOR STREET AND TRANSPORTATION, ECONOMIC DEVELOPMENT PROJECTS. SO WE CONTINUE TO PURSUE THOSE TYPES OF FUNDING. OUR DEVELOPMENT SERVICES IS ALONG WITH OUR WITH DOCTOR WILLIAMS ARE SUBMITTING FOR A GRANT THROUGH COG NCT COG FOR SEVERAL, SEVERAL OPPORTUNITIES IN THERE AS WELL AS YOU KNOW, PURSUING SOME SAFE ROUTES TO SCHOOL AND OTHER TYPES OF FUNDING THAT WILL CREATE OPPORTUNITIES FOR OUR SIDEWALKS, OUR STREETS AND, AND, AND OTHER INITIATIVES, ECONOMIC DEVELOPMENT INITIATIVES HAVING THE OPPORTUNITY TO ADVANCE KEY INITIATIVES SUCH AS THE THORNTREE GOLF CLUB'S, THE HAMPTON ROAD NORTHWEST AND SOUTHWEST CORNERS, THE ARC DISTRICT. THOSE ARE ALL OPPORTUNITIES THAT WILL BENEFIT US, NOT IN THE SHORT TERM ONLY, BUT FOR THE LONGEST TERM. AND THAT WOULD ENHANCE PROPERTY AND SALES TAX BASIS. BUT IT WILL ALSO BRING IN PEOPLE TO DESOTO AND THERE WILL BE SPENDING OPPORTUNITIES AS WELL. HOUSING GROWTH AND STRATEGIC THE DENSIFICATION. SO WE'RE LOOKING AT RESIDENTIAL EXPANSION, SMART RESIDENTIAL EXPANSION. WE ALSO IMPLEMENTED THE ONE STOP SHOP, WHICH IS A STREAMLINED PROCESS INTENDED TO HELP FOLKS REALLY DESIRE TO COME IN DESOTO, BECAUSE FOR DEVELOPERS, TIME IS MONEY. AND WHEN WE STREAMLINE THE PROCESS AND EXECUTE FASTER THAT'S REALLY ALMOST CONSIDERED AN INCENTIVE FOR SOME OF THE DEVELOPERS. SO THAT'S AN OPPORTUNITY. AND I JUST TALKED A LITTLE BIT ABOUT IT. ATTRACTION, YOU KNOW, ATTRACTION OF BROADER BUSINESS BASE TO STABILIZE REVENUES. WE CAN'T DEPEND ON THE PROPERTY TAX OR THE TAX BASE. WE HAVE TO REALLY LOOK AT SOME OF THE INDUSTRIES THAT DE SOTO DESIRES AND BRING THOSE INDUSTRIES AND ALSO ENTICE THEM TO BE HERE THROUGH INCENTIVIZATION. GO AHEAD AND NEXT STEPS. AGAIN, WE WILL CONTINUE WITH THE PRIORITY BASED BUDGETING. CONTINUING ADVANCING KEY DEVELOPMENT CAPITAL PROJECTS. GRANT SEEKING CAPACITY. WE HAVE DOCTOR WILLIAMS AND HER TEAM ARE FULL FLEDGED FOCUSING ON ON THOSE OPPORTUNITIES AS WELL. AND ALSO CONTINUING THEY DO A GREAT JOB OF ENHANCING COMMUNITY ENGAGEMENT NOT ONLY THROUGH THE BUDGET PLANNING, BUT THROUGH HOA'S AND OTHER ACTIVITIES AS WELL AS YOU KNOW, CONTINUING ADVOCACY EFFORTS ON THE STATE LEVEL FOR MUNICIPAL FLEXIBILITY AND CERTAINLY TOUCHED A LITTLE BIT ON IT WITH THE HUT TAX. AND COLLABORATION WITH SENATOR WEST ON SOME OF THE THINGS THAT WE CAN WE CAN DO WITH THE. WITH WITH THE HUT FUNDS. NEXT. AND IF WE HAVE ANY QUESTIONS ON THAT. I GUESS NOT. YOU DID A MASTERFUL JOB AT PRESENTING MAYOR. YOU PROBABLY ARE. YOU PROBABLY ARE TIRED AND YOU'VE HEARD THAT STORY. [01:30:05] 50 DIFFERENT FLAVORS. SO I GOT AWAY WITH IT NEXT. GOOD EVENING, MAYOR AND COUNCIL. WE'LL TALK A LITTLE BIT ABOUT TONIGHT ABOUT THE BILL, WHICH IS BASICALLY REFLECTED IN, I THINK, CHAPTER 334 OF THE TEXAS LOCAL GOVERNMENT CODE. TALKS ABOUT TOURISM, ECONOMIC DEVELOPMENT. AND SO WE'LL BE LOOKING FOR TONIGHT IS BASICALLY YOUR DIRECTION ON WHETHER OR NOT YOU WANT US TO MOVE FORWARD WITH EXPLORING OPPORTUNITIES UNDER THE BROWN BILL. SO A LITTLE BIT OF BACKGROUND. THANK YOU KAREN. AS I SAID, CHAPTER 334 OF THE TEXAS LOCAL GOVERNMENT CODE BASICALLY ESTABLISHED THE VENUE PROJECT, WHICH IS APPROVED BUT HAS TO BE APPROVED BY THE VOTERS. WHICH HAS TO BE APPROVED BY THE VOTERS. AND SO SOME OF THE WAYS THAT YOU CAN TAKE ADVANTAGE OF THE BILL, YOU CAN IMPLEMENT A VENUE HOT TAX, WHICH IS 2% ABOVE THE CITY'S CURRENT HOT TAX RATE. WE'LL TALK A LITTLE BIT MORE ABOUT THAT THEN VENUE CAR RENTAL TAX, WHICH IS YOU CAN GO UP TO 5% THERE. AND THEN THE VENUE SALES TAX, WHICH IS SUBJECT TO THE LOCAL 2% SALES TAX CAP. AND WE ALL TALKED A LOT ABOUT THAT PREVIOUSLY, HOW WE'RE LIMITED TO 2% ON THE SALES TAX. SO AND THAT'S ALREADY ALLOCATED IN DIFFERENT BUCKETS. SO IF YOU WANT TO GO THIS ROUTE YOU HAVE TO REALLOCATE THE CURRENT 2%. SO BASICALLY, WE CAN USE THAT INCREMENTAL REVENUE TO TO CONSTRUCT CONVENTION CENTERS, SPORTS ARENAS, STADIUMS, ANYTHING TOURISM RELATED IN TERMS OF A PUBLIC VENUE THAT MEETS THE, THE TOURISM AND THE HOT FUND REQUIREMENTS. AGAIN, WE KIND OF TALKED ABOUT THIS PREVIOUSLY ON THE PREVIOUS SLIDE, BUT GOING DOWN TO THE VEHICLE, I MEAN, THE VENUE HOTEL OCCUPANCY TAX, UP TO 2% ADDITIONAL HOT TAX. SO RIGHT NOW THE CITY'S TAX HOT TAX RATE, I THINK IS 7%. AND THEN I THINK THE STATE HIGH TAX RATE IS 6%. I'M SORRY. OKAY, SO IT'S COMBINED 13%. AND SO YOU CAN THE COMBINED HIGH TAX RATE CAN'T BE ANY MORE THAN 17%. SO WIGGLE ROOM THERE IF WE WANT TO INCREASE THAT OUR HOT TAX RATE, WE CAN DO THAT AS WELL. OBVIOUSLY AGAIN IT'S VOTER APPROVED THOUGH. AND THEN THE OTHER THING I WANTED TO MENTION WAS THE VENUE SALES TAX. YOU KNOW, WE TALKED ABOUT A LITTLE BIT EARLIER HOW AGAIN, HOW IT'S DIVIDED UP INTO THOSE DIFFERENT BUCKETS TO DC, TO THE PARK PARK DEVELOPMENT CORPORATION TO PROPERTY TAX, SALES TAX FOR PROPERTY TAX RELIEF AND THEN TO THE GENERAL FUND. AND SO IF WE AGAIN DECIDED TO CREATE A VENUE SALES TAX, WE'D HAVE TO LOOK AT REALLOCATING THOSE. IF WE WANTED TO DO THAT. SO SOME SOME EXAMPLES OF COMPARABLE CITIES THAT WE MAY BE ABLE TO LOOK TO IN TERMS OF PROJECTS. SO WE HAVE THE EPIC WHICH WE KNOW IS THE BASICALLY THE FOUNDATION FOR EPIC CENTRAL OVER THERE IN GRAND PRAIRIE. THAT WAS FUNDED THROUGH VENUE SALES AND LOCAL HOT TAX HOT FUNDS, SHOULD I SAY. THE AIRHOGS STADIUM WAS ORIGINALLY FINANCED THROUGH VENUE TAXES. THE CAVEAT WITH EARHART EARHART STADIUM IS IT WAS SINCE IT HAS SINCE BEEN BEING REPROGRAMED. SO THE LESSON LEARNED WITH THAT STADIUM IS YOU HAVE TO MAKE SURE THAT WE'RE FLEXIBLE SO THAT IF THE TENANT LEAVES, WE CAN WE CAN USE THE STADIUM OR THE VENUE FOR OTHER USES AND STILL GENERATE REVENUE. AND THEN THE ALLEN EVENT CENTER, AGAIN, SUPPORTED BY LOCAL TAXES, VENUE TAXES AND MUNICIPAL FINANCING. AND OBVIOUSLY, WE KNOW THEY USE THAT EVENT CENTER FOR A LOT OF THINGS. YOU KNOW, GRADUATIONS CONCERTS GAMES, ALL KINDS OF THINGS. THEN LARGER CITIES WITH LARGER SCALE PROJECTS USE DIFFERENT FINANCIAL TOOLS THAT NOT, NOT MAY NOT BE AVAILABLE TO THE DESOTO, SUCH AS THE QUALIFIED HOTEL PROGRAM AND THEN THE PROJECT FINANCING ZONE. THOSE ARE SOME DIFFERENT TOOLS THAT THOSE CITIES USE. YOU KNOW, AND THOSE PROJECTS ARE A LOT, A LOT ON A MUCH GRANDER SCALE. AND IT COSTS A LOT MORE. SO WHAT ARE THE TYPICAL STEPS IN TERMS OF THIS PROCESS. SO WE WOULD DEFINE THE PROJECT SCOPE. TAKE A LOOK AT THE COST AND THE PURPOSE OF THE PROJECT. ESTABLISH THE ZONE. IN OTHER WORDS, WHERE WE WANT THIS PROJECT, THIS FACILITY TO BE LOCATED AND WHAT THE SURROUNDING AREA IS AROUND THE FACILITY, BECAUSE THAT AREA WILL LIKELY BENEFIT FROM THE PROJECT AS WELL, AND VICE VERSA. AND THEN WE PREPARE FINANCIAL PLAN AND DEVELOP REVENUES PROJECTIONS. AND THAT WOULD BE DONE IN AND IN CONJUNCTION WITH OUR FINANCE DEPARTMENT. THE CITY MANAGER'S OFFICE, THE FINANCIAL ADVISOR, AND EVEN AS WELL AS OUR CITY ATTORNEY OBVIOUSLY HAVE TO HAVE TO TAKE IT TO THE VOTERS [01:35:04] AND HAVE A VOTER HAVE AN ELECTION MAJORITY VOTE REQUIRED TO ISSUE THE PROJECT BONDS. AND THEN YOU USE THOSE REVENUES THAT WE TALKED ABOUT TO PAY THOSE BONDS BACK. OBVIOUSLY, YOU CONSTRUCT THE PROJECT AND THEN DO YOUR COMPLIANCE REPORTING. SO AGAIN, REALLY WHAT THE BILL DOES IS ALLOWS THE CITY TO CREATE THESE VENUES WITHOUT FURTHER BURDENING THE PROPERTY TAX PAYERS. RIGHT? YOU WHAT YOU DO IS USE VISITOR GENERATED REVENUES TO PAY FOR THESE. PAY THE DEBT ON THESE FACILITIES. AND SO YOU CAN USE IT FOR EXPANSION AS WELL AS THE CONSTRUCTION OF NEW FACILITIES AS WELL. SO HOW DOES THIS IMPACT US FINANCIALLY? SO I THINK WE TALKED A LITTLE BIT EARLIER. WE HAVE A 18.25 CENT PER $100 VALUATION DEBT RATE. SO THAT MEANS FOR EVERY ONE PENNY OF THE DEBT SERVICE RATE, WE RECEIVE $800,000 IN REVENUE. SO JUST IMAGINE IF WE COULD RECEIVE $800,000 IN ADDITIONAL HIGH TAX OR ADDITIONAL. OTHER OTHER VENUE TAX. YOU KNOW, THAT'S ONE THAT'S THAT ELIMINATES OR PREVENTS US FROM HAVING TO INCREASE THE DEBT RATE BY $0.01. SO THAT'S, THAT'S THE KIND OF THE FINANCIAL CONSIDERATION WE WANT TO WANT COUNCIL TO THINK ABOUT AGAIN, DOESN'T DOESN'T IMPOSE ANY ADDITIONAL BURDEN ON THE PROPERTY OWNERS. AND IT USES VISITOR GENERATED REVENUE TO PAY FOR THE PROJECT DEBT. SO WHAT ARE WE LOOKING FOR IN THE NEXT STEPS? BASICALLY WHAT WE WANT TO DO IS GET, IF WE GET YOUR DIRECTIONS TO KIND OF FLUSH THIS OUT A LITTLE BIT MORE, WHAT WE'LL DO IS WE'LL DEVELOP A LIST OF ELIGIBLE PROJECTS, AND THEN WE'LL ALSO CONDUCT A MARKET SCAN. BASICALLY THAT'LL TELL US IS, YOU KNOW, WHAT ARE THE OPPORTUNITIES OUT THERE, RIGHT? WHAT MAKES SENSE FOR US? WHAT TYPE OF PROJECT MAKES SENSE FOR US? YOU KNOW, BASED ON WHAT, WHAT'S GOING ON IN THE, IN THE REGION, BASED ON WHAT OUR SURROUNDING CITIES ARE DOING THINGS OF THAT NATURE. AND THEN WHAT TYPE OF ACTIVITY WE'RE SEEING HERE IN DE SOTO AS WELL. AND THEN WE'LL IDENTIFY POTENTIAL SITES, YOU KNOW, IS IT NEAR THE ARC? IS IT HAMPTON? YOU KNOW, THOSE ARE SOME THINGS WE'LL HAVE TO TAKE A LOOK AT, AND THEN WE'LL OUTLINE THE LEGAL AND PROCESSES THAT WE NEED TO TO UNDERGO. AND THEN WE'LL BRING BACK A PRELIMINARY FRAMEWORK WITH A MIX OF. WITH A MATRIX SO COUNCIL CAN SEE WHAT THE OPTIONS ARE AND GIVE US FEEDBACK ON THAT. THAT'S IT. THANK YOU, MR. CAMERON. COUNCIL. I DO SEE A LIGHT FROM COUNCIL MEMBER PARKER. THANK YOU, MADAM MAYOR. THANK YOU FOR THIS PRESENTATION. AND I TRIED TO DO SOME RESEARCH ON THIS TO SEE WHAT OTHER CITIES SIMILAR TO DESOTO. I SAW THE OTHER ONES, THE BIG ONES. BUT WHAT OTHER CITIES SIMILAR TO DESOTO HAVE IMPLEMENTED THIS? ALLEN IS IS ONE CITY THAT HAS DONE IT FOR THE, FOR THE CONVENTION CENTER. OBVIOUSLY THE CITY OF DALLAS, THE CITY OF FORT WORTH HAVE IMPLEMENTED IT. SO THE TRICK TO IT IS, IS REALLY DEFINING AN AREA. AND A LOT OF CITIES, THEY MAY NOT HAVE THE PROPER REVENUE GENERATION TO TAKE ON A PROJECT LIKE THAT. WE BELIEVE WE DO. ESPECIALLY IF WE CREATE IT AROUND THE ARC DISTRICT AND THE ENTERTAINMENT DISTRICT. THOSE ARE THOSE ARE VENUES THAT WOULD BE WOULD BE A GREAT OPPORTUNITY FOR US TO GENERATE ADDITIONAL REVENUE THAT WE CAN PUT TOWARDS INCENTIVIZING FUTURE DEVELOPMENT. OKAY. SO THE SIMILAR CITIES, WHEN I SAY SIMILAR, I DON'T MEAN NECESSARILY IN PROXIMITY. I MEAN SIMILAR IN POPULATION REVENUE, THAT TYPE OF THING. THAT'S REALLY WHAT I WAS MEANING WHEN I SAID SIMILAR. SO DO WE HAVE ANY OF THAT? WE'LL DO A LITTLE MORE RESEARCH ON THAT, BUT WE CAN CERTAINLY PROVIDE SOMETHING SIMILAR. AND THEN THE OTHER QUESTION I HAVE IS YOU KNOW, I ALWAYS GO BACK TO CENSUS VOTER APPROVAL. THERE NEEDS TO BE A STEP IN THAT LIST OF STEPS THAT ACTUALLY TASTED BEFORE THE PUBLIC, BEFORE IT'S A THING TO GIVE THEM MORE INFORMATION SO THEY UNDERSTAND WHAT IT IS. BECAUSE I'M ALL FOR BRINGING THINGS AROUND THAT ARC, MAKING THAT ARC THE DESTINATION OR PEOPLE WANTING TO BE IN THAT AREA. BUT YOU KNOW, AGAIN, WHEN YOU'RE TALKING IN TERMS OF ANYTHING THAT THE VOTERS HAVE TO VOTE ON, THEY NEED TO HEAR ABOUT IT BEFORE BRINGING THEM IN IN THE IN THE INTERIM, IN THE BEGINNING ACTUALLY HELPS TO KEEP FROM HAVING ALL THE QUESTIONS AND THEN THAT THAT HELPS THEM TO UNDERSTAND WHAT'S GOING ON. THANK YOU FOR THAT. AND WE WILL DEFINITELY DO A LOT OF PUBLIC EDUCATION AROUND THAT. I APPRECIATE THAT BECAUSE WE WANT THAT SUPPORT. I YIELD BACK. COUNCILMAN WATERS THANK YOU, MADAM MAYOR. JUST WANT TO CLARIFY SOMETHING YOU SAID. SO RIGHT NOW THE HOTEL TAX IS SET. WAS IT 14%? IT CAN GO UP TO SEVEN 7%. 13 TOTAL 13. [01:40:03] THERE YOU GO. OH YEAH. SO WE HAVE 4% THAT WE CAN WORK WITH WITH THIS. IS THAT CORRECT? WE CAN ONLY INCREASE IT BY 2%. OH OKAY. RIGHT. SO WE GOT FOUR, FOUR, 4% ROOM WINDOW, BUT WE CAN ONLY INCREASE IT BY 2%. SO WE'RE NOWHERE NEAR THE CEILING. AND SO THAT MEANS IF IF THE COUNTY OR SOMEBODY ELSE WANTS TO COME IN AND ADD A HIGH TAX, YOU STILL GOT ROOM FOR THAT. COMBINE THAT COMBINED RATE, RIGHT? WHEN YOU SAY VENUE TAX. SO ANYTHING OTHER THAN HOTEL THAT'S THAT'S A. YEAH. NOT HOTEL, A VENUE RELATED CONVENTION CENTER, SOMETHING SOMETHING WHERE PEOPLE GATHER RIGHT. AND THEY UTILIZE IT FOR ACTIVITIES, BUT NOT A HOTEL. CORRECT. AND I DON'T KNOW IF IT'S YOUR IDEA OR THE COUNCIL'S IDEA TO PASS, BUT GREAT IDEA. OF COURSE NOT. TAKE IT OUT OF THE GENERAL FUND. SO WHOEVER'S IDEA WAS. THANK YOU FOR THE IDEA. I THINK IT'S ALWAYS THE MAYOR AND THE CITY COUNCIL. THANK YOU. MAYOR. CITY COUNCIL, I YIELD BACK. THANK YOU. DEFINITELY. EXCELLENT IDEA. I SEE NO ADDITIONAL LIGHTS, SO WE'LL TAKE THE FINAL ITEM, I BELIEVE, ON THIS PARTICULAR SEGMENT OF OUR AGENDA. MR.. CITY MANAGER. WE WANTED TO KIND OF SHARE WITH YOU SOME OF THE THOUGHT PROCESS ON ON WHAT OUR FUTURE FINANCIAL MAKEUP IS. AND WE ARE AGAIN IN, IN GREAT SHAPE WHEN IT COMES TO BEING A DOUBLE, A BOND RATING AND, AND PAYING OUR BILLS ON TIME AND, AND THE CITY COUNCIL APPROVING THOSE CEOS THAT SUPPORT OUR INFRASTRUCTURE PROGRAM. BUT I BELIEVE LAKITA HAS JUST SPOKE TO OUR FINANCIAL ADVISOR SPECIFICALLY, AND SHE HAS A COUPLE OF THINGS TO SHARE WITH US. THANK YOU FOR THAT. SO I WANTED TO COME AND SHARE SOME INFORMATION ABOUT OUR POTENTIAL BOND PROGRAM FOR FISCAL YEAR 27. WE WILL BE PROPOSING THAT THE COUNCIL HAVE A BOND SALE FOR FISCAL YEAR 2027. AS WE KNOW, OUR LAST BOND SALE WAS IN FISCAL YEAR 2025, AND IT WAS MEANT TO COVER PROJECTS FOR 2025 AND 2026. SO THE PURPOSE TODAY IS TO LOOK AT OUR PRIOR PLAN, LOOK AT FUTURE CAPITAL PROJECTS, FUNDING, AND KIND OF WHAT THAT PROCESS WILL LOOK LIKE FOR A POTENTIAL BOND PROGRAM FOR FISCAL YEAR 2027. THE CITY COUNCIL HAD REQUESTED STAFF TO SEEK CITY COUNCIL GUIDANCE ON THE CITY'S BOND CAPACITY AND THE TAX RATE CONSIDERATIONS FOR UPCOMING CAPITAL PROJECTS. AS CITY MANAGER STATED, I'VE BEEN IN CLOSE CONTACT WITH OUR FINANCIAL ADVISORS. I SPOKE WITH ANDRE JUST TODAY. AGAIN, WE'RE IN GREAT SHAPE TO CONTINUE WITH OUR BOND PROGRAM FOR FISCAL YEAR 2027. SO WE HAVE THE CAPACITY. WE HAVE OUR STELLAR DOUBLE A+ BOND RATING STILL GOING FOR US. SO THOSE ARE THE GOOD THINGS ABOUT IT. THIS IS JUST A REMINDER HERE OF WHAT THE CURRENT BOND PROGRAMING IS THAT WE IMPLEMENTED. IMPLEMENTED. I'M SORRY TO COVER FISCAL YEAR 25 AND 2026 CIP PROJECTS. AND YOU'VE SEEN THESE BEFORE. THESE ARE OUR LAST BOND SALE WAS A TOTAL OF 48.5 MILLION AND LISTED HERE ARE THE PROJECTS THAT THE THAT THAT BOND WAS MEANT TO FINANCE. MOVING FORWARD INTO FISCAL YEAR 2027 AND BEYOND, WE ARE IN THE PROCESS NOW OF MEETING WITH OUR CAPITAL PROJECTS TEAMS, WHICH IS COMPRISED OF CMS, OFFICE, FINANCE, PUBLIC UTILITIES AND DEVELOPMENT SERVICES TO REVIEW FUTURE PLANS FOR INFRASTRUCTURE IMPROVEMENTS AND MAINTENANCE. THERE ARE PROGRAMS THAT WE ADD, AND THIS IS JUST KIND OF OUR INTERNAL WORKING DOCUMENT THAT WE MEET AND WE KIND OF LOOK AT AS WE GO FROM YEAR TO YEAR, YOU CAN SEE THE INFORMATION THAT WAS LISTED FOR FISCAL YEAR 2025, THAT 48.5 MILLION NO AMOUNTS WERE LISTED FOR FISCAL YEAR 26. AND NOW WE'RE STARTING TO NEED TO SEE WHAT CAPITAL NEEDS DO WE HAVE FOR FISCAL YEAR 2027. SEVERAL THINGS ARE ALWAYS TAKEN INTO CONSIDERATION, SUCH AS ONE OF THE MAJOR THINGS WOULD BE ROAD PROJECTS. WE KNOW THAT FOR THOSE WE NORMALLY GO WITH A CEO FOR THAT TYPE OF PROJECT. A FEW YEARS AGO, WE LOOKED BACK AT DOING SOME WORK ON PLEASANT RUN IN FISCAL YEAR 2027 FOR THOSE TYPE OF PROJECTS. THE TIMING OFTEN GOES ALONG WITH THE COUNTY AND WHEN THEY'RE READY WITH THEIR PORTION. SO WE'RE WORKING THROUGH SOME OPTIONS THERE TO POSSIBLY INCLUDE PLEASANT RUN AS A PART OF OUR FUTURE BOND SALE FOR FISCAL YEAR 27. [01:45:02] THESE ARE NOT ANYWHERE WRITTEN IN STONE. WE'RE JUST STILL WORKING THROUGH THEM BEFORE ANY RECOMMENDATIONS ARE MADE, THE TEAM WILL HAVE MET SEVERAL TIMES THROUGHOUT THE BUDGET CYCLE AND WILL BE COMING BACK TO COUNCIL WITH OUR UPDATES ON THIS PLAN. SO AGAIN, WE WE HAVE A FEASIBLE PLAN. WE WORK WITH OUR TECHS, OUR ADVISORS. EVERY YEAR WE HAVE A CURRENT DEBT SERVICE RATE OF 0.182542. THE GOAL IS TO MAINTAIN THAT RATE FOR NEXT YEAR. AND MOVING FORWARD, WE KNOW WE DON'T WANT TO LOWER OUR DEBT SERVICE RATE BECAUSE IF YOU LOWER IT, IT'S NOT EASY TO GET IT BACK UP WITHOUT THE CITIZENS BEING FACED WITH A HUGE TAX INCREASE ALL AT ONCE. SO OUR GOAL RIGHT NOW IS TO CONTINUE MONITORING OUR PROPERTY TAX VALUES. I'M WAITING ON THOSE FIRST SET OF RESULTS TO COME IN TO THE CITY IN APRIL. AND THEN WE CAN KIND OF HAVE MORE, A BETTER SET OF ASSUMPTIONS OF WHERE WE'RE GOING WITH OUR DEBT SERVICE RATE AGAIN TO ISSUE OUR NEXT ROUND IN FISCAL YEAR 2027. WE NORMALLY ISSUE BONDS IN THE SUMMER. SO IF WE WE DECIDE TO MOVE FORWARD WITH FISCAL YEAR 27, WE WILL BE BRINGING THESE ITEMS BACK TO YOU HERE SHORTLY. I HAVE A PART IN HERE TO MANAGE THE FY 2026 BY PAYING SOME OF THE SELF-SUPPORTED DEBT ON THE TAX SIDE, OR PREPAY SOME DEBT TO ACHIEVE THE SAME RESULT. WHAT THAT MEANS, ESSENTIALLY, IS THAT WE WANT TO MAINTAIN OUR DEBT SERVICE RATE. WE NEED TO MAINTAIN THAT IN CASE WHEN THE WHEN WE COME BACK WITH OUR PROPERTY TAX CALCULATION, IF M N O IS TOO LOW AND DEBT SERVICE IS ALSO TOO LOW, OUR TAX. TOTAL TAX RATE WILL BE TOO LOW AND WE WON'T BE ABLE TO BRING IN ENOUGH REVENUE. WHAT I'D LIKE TO DO IS PUT TOGETHER A SET OF ASSUMPTIONS AND BRING IT BACK AND TALK TO YOU, TALK WITH THE CITY COUNCIL ABOUT IT AND INVITE OUR FINANCIAL ADVISORS TO COME OUT. TALK TO US EARLY IN THE YEAR. I'M THINKING AROUND THE MAY TIME FRAME. AT THAT POINT, WE WILL AT LEAST HAVE MADE SOME TYPE OF ASSUMPTIONS OF HOW MUCH PROPERTY GROWTH THAT WE'LL HAVE. RIGHT NOW IT'S BEEN AVERAGING AROUND 6 OR 7% IN GROWTH. SO THOSE ARE THE ASSUMPTIONS THAT WE'RE BASING EVERYTHING ON NOW. MOVE FORWARD HERE. SO OUR NEXT STEPS WOULD BE TO PRESENT FINANCE AND CAPITAL PROJECT NEEDS. WE WILL CONTINUE WORKING CLOSELY CLOSELY WITH OUR FINANCIAL ADVISORS PRESENT A SCHEDULE TO CITY COUNCIL. PRESENT A PRESENTATION TO CITY COUNCIL IN MAY ABOUT HOW WE WANT TO GO ABOUT MANAGING OUR INN'S TAX RATE. AS YOU CAN RECALL, A COUPLE YEARS AGO, WE MANAGED IT BY DOING A SHORT TERM DEBT INSTRUMENT. WE WILL NEED TO CONTINUE TO MANAGE THAT. COUNCIL AND I WANT TO BE CLEAR ABOUT THAT. WE JUST AS WELL AS WE MANAGE THE OUTSIDE. WE HAVE TO MANAGE THE INSIDE AS WELL. THAT'S JUST WHAT CITIES ARE FACED WITH. NOW AS A RESULT OF OF SENATE BILL TWO. SO WE WANT TO BRING BACK BRING THAT BACK TO YOU AND KIND OF LET YOU KNOW WHAT OUR OPTIONS ARE AS FAR AS HOW WE PLAN TO PROPOSE MANAGING THAT IN THIS TAX RATE. AND THEN DEPENDING ON THE TYPE OF BOND THAT IS RECOMMENDED, A BOND ELECTION MAY BE WARRANTED. IN THE PAST, I BELIEVE WE'VE DONE THE MAJORITY OF CEOS. WE HAVE NOT DONE A GENERAL OBLIGATION BOND SINCE 2014. SO IT'S BEEN A WHILE SINCE WE'VE TAKEN ANY TYPE OF GOES TO THE PUBLIC FOR VOTES. NORMALLY, THE TYPE OF PROJECTS THAT WE HAVE ON OUR CIP ARE FUNDED WITH CEOS. SO WE'VE BEEN ACCORDING IN ACCORDANCE WITH WHAT IS WHAT NORMAL NORMALLY HAPPENS WITH THE CEOS. SEE IF THERE'S ANYTHING ELSE I NEED TO MENTION ABOUT THAT WE WILL BE PRESENTING WHEN WE COME BACK IN MAY, WE WILL BE PRESENTING WITH SEVERAL OPTIONS OF HOW WE PLAN TO MANAGE THIS DEBT SERVICE RATE. SO WE'LL HAVE SOME OPTIONS FOR YOU. SO WE'LL HAVE EXAMPLES OF WHAT OTHER CITIES ARE DOING TO MANAGE THEIRS. OUR FINANCIAL ADVISORS WILL DISCUSS WHAT GRAND PRAIRIE AND ALSO GARLAND. THEY ALSO HAVE THE SAME FINANCIAL ADVISORS THAT WE HAVE. AND SOME THINGS THAT WE CAN DO TO HELP MANAGE THAT. THAT CONCLUDES MY PRESENTATION. THANK YOU. THANK YOU, MISS SAID. WHAT TYPE OF FEEDBACK WERE YOU WANTING FROM US ON THIS ITEM? THIS WAS FOR INFORMATIONAL PURPOSES. AND JUST TO GIVE YOU ALL A HEADS UP THAT WE WILL BE COMING BACK IN MAY WITH MORE IN DEPTH PRESENTATION. OKAY. AND I SAW MY COLLEAGUE CAUTIOUSLY, LIGHTLY TAP HIS BUTTON. SO HE DOES HAVE A QUESTION. HE MIGHT ACTUALLY HAVE WHAT IS ON MY MIND, BUT I'M I'M GONNA SEE IF HE ASKS IT. [01:50:07] THANK YOU, MADAM MAYOR. MISS SUTTON, WILL YOU MAKE SURE THAT WHEN YOU COME BACK WITH YOUR STRATEGY TO MANAGE THIS? I KNOW THE LAST TIME WE TOOK OUT A LOAN TO MANAGE IT, MANY OF THE CITIZENS THOUGHT THAT WE TOOK OUT A LOAN BECAUSE WE WERE BROKE AND WE NEEDED A PAYDAY LOAN, AND THAT WAS NOT NECESSARILY THE CASE. IT WAS TO KEEP THAT RATE AT A CERTAIN LEVEL. AND THE ONLY WAY TO KEEP THAT RATE AT A CERTAIN LEVEL IS TO HAVE A DEBT SERVICE ATTACHED TO THE. ABSOLUTELY. AND AND SO IT WAS A SHORT TERM FIX UNTIL THE NEXT YEAR. AND AS SOON AS WE GOT EVERYTHING BALANCED OUT AGAIN, WE WERE ABLE TO REPAY THAT LOAN BECAUSE WE DIDN'T REALLY NEED THE MONEY. WE NEEDED THE PERCENTAGE. CORRECT. SO MY ANSWER IS THAT AS YOU MOVE FORWARD AND AS YOU GUYS GET INTO THOSE STRATEGIES THAT WE MAKE SURE THAT THE COUNCIL AS WELL AS THE PUBLIC UNDERSTAND SO THAT THE WRONG NARRATIVE IS NOT PUT OUT. SO THAT THAT WOULD BE MY ASK AS YOU COME BACK WITH THESE STRATEGIES. BECAUSE KEEPING THAT RATE TO, TO THE POINT IF IT DROPS, THEN WE'RE FORCED TO DROP, YOU KNOW, THE TAX RATE, IF WE DROP THE TAX RATE, THEN WE CAN NEVER GET IT UP. CORRECT. SO, SO THANK YOU VERY MUCH. THANK YOU, MADAM MAYOR. THANK YOU. THANK YOU, COUNCILMEMBER PARKER. YOU KNOW, I TOPPED MINE WITH A LITTLE BIT OF TREPIDATION AS WELL. AND I HAVE TO SAY THAT COUNCILMAN BYRD, BELIEVE IT OR NOT, ACTUALLY SAID EXACTLY WHAT I WAS GOING TO SAY WHEN IT COMES TO MAKING CERTAIN THAT, AGAIN, WE MAKE THE PUBLIC THE FOREFRONT, THAT THEY UNDERSTAND WHAT'S GOING ON SO IT DOESN'T COME BACK TO BITE US, BECAUSE THAT DOES SEEM TO BE A PERCEPTION THAT IS NEVER KIND OF PUT IN THE FOREFRONT. THE MORE CLARITY THAT WE CAN HAVE, THE BETTER THE PUBLIC WILL UNDERSTAND. YEAH, ABSOLUTELY. THANK YOU. THANK YOU. I, I, MY QUESTION WAS NOT ASKED, BUT I KNOW THAT, YOU KNOW, THE CITY HAS A STATISTIC THAT WE LOVE TO TOUT IN TERMS OF THE LAST 13, 15 YEARS, WE'VE NOT HAD TO INCREASE OUR TAX RATE. WE'VE EITHER REDUCED OR KEPT IT STEADY. IS THAT IS THE POSSIBILITY OF HAVING TO INCREASE THE TAX RATE A VERY REAL POSSIBILITY FOR US IN THE NEAR FUTURE? IT'S A REAL POSSIBILITY. YES. YES, MAYOR. WE WE ARE IN THE PROCESS NOW OF PUTTING NUMBERS TOGETHER, PUTTING TOGETHER SCENARIOS. WE'LL HAVE A MUCH BETTER IDEA ONCE WE START RECEIVING SOME OF THE PROPERTY VALUES, THEN WE CAN DO SOME MOCK TRIALS WITH OUR PROPERTY TAX CALCULATION AND DO SOME DIFFERENT SCENARIOS THERE. BUT WE DON'T WANT TO WE'VE, YOU KNOW, IT'S BEEN GREAT THAT WE'VE BEEN ABLE TO NOT INCREASE PROPERTY TAX. BUT WE HAVE TO THINK ABOUT, YOU KNOW, THE FACT THAT WE HAVE BROUGHT ON ADDITIONAL PROGRAMING WITH THE AAC AND OTHER THINGS LIKE THAT. SO, YOU KNOW, AND ALSO WE'LL HAVE SOME CAPITAL NEEDS COMING UP AS WELL. AND ALL OF THAT, YOU KNOW, WE NEED TO MAINTAIN THE DEBT RATE SO WE CAN KEEP THAT UP. IF WE STAY STILL AND DO NOTHING ON THE DEBT SIDE, OUR DEBT RATE IS GOING TO COME BACK AT $0.13. THAT'S IF IF ALL THINGS REMAINING THE SAME RIGHT NOW. SO WE DEFINITELY WANT TO TO MANAGE MANAGE IT THE BEST WE CAN TO KEEP IT AT THE 0.18. SURE. AND I WOULD I WOULD LOVE TO SEE US SINCE WE STILL HAVE WE'RE WE'RE NOT AS EARLY AS I WOULD LIKE FOR US TO BE, BUT WE'RE STILL EARLY ENOUGH IN THE YEAR. AND I KNOW THAT STAFF HAS BEEN TAKING A VERY DIFFERENT AND WELCOMED APPROACH TO HOW WE ENGAGE THE COMMUNITY AROUND THE BUDGET. SPECIFICALLY AROUND THE TAX RATE. ONE OF THE THINGS THAT I HEAR A LOT ONLINE IS, OH, MY TAXES ARE TOO HIGH IN DESOTO AND WE DON'T HAVE THIS OR WE DON'T HAVE THAT. LIKE HELPING PEOPLE UNDERSTAND. AND I KNOW THAT WE HAVE THE PROPERTY TAX ONE ON ONE, BUT I DON'T KNOW IF THAT'S QUITE HITTING THE NAIL ON THE HEAD IN TERMS OF EDUCATING OUR PUBLIC AND ENGAGING OUR PUBLIC IN A WAY TO WHERE THEY'RE UNDERSTANDING HOW THEIR TAX RATE IS CALCULATED AND THE POSSIBILITIES OF, OF WHAT WHAT MAY NEED TO HAPPEN. RIGHT? OBVIOUSLY, WE WANT TO KEEP TAKING THE TAX RATE DOWN IF WE CAN. HOWEVER, THAT'S NOT IN GOVERNMENT MATH. YOU KNOW, GOVERNMENT MATH IS VERY DIFFERENT FROM THE MATH THAT WE USE TO MANAGE OUR AND BALANCE OUR HOUSEHOLD BILLS. RIGHT? AND SO HELPING RESIDENTS UNDERSTAND WHAT THAT NEED MAY BE AND KIND OF GIVING IT TO THEM IN SMALLER DOSES AND PREPPING THEM FOR IT. IT MAY NOT STILL MAY NOT BE SOMETHING THEY WANT TO HEAR, BUT I THINK IF THEY'RE IF IT'S NOT JUST SPRUNG ON THEM OR THEY DON'T FEEL BLINDSIDED BY [01:55:03] SOMETHING LIKE THAT, I THINK IT MAY BE EASIER FOR US IF THAT SHOULD HAVE TO BE OUR, OUR PLIGHT, RIGHT, IN TERMS OF HAVING TO INCREASE THAT TAX RATE. JUST HELPING THEM TO UNDERSTAND THE LOGISTICS AND THE MECHANICS AROUND THE TAX RATE. SO, AND I'M NOT, I'M NOT I DON'T NECESSARILY HAVE AN IDEA OF WHAT THAT COULD LOOK LIKE, BUT JUST, JUST GETTING STAFF AND US AND COUNCIL MEMBERS AS WELL BECAUSE WE HAVE A, WE OBVIOUSLY HAVE A BIG ROLE TO PLAY IN ENGAGING THE PUBLIC. PROBABLY THE BIGGEST ROLE IN ENGAGING THE PUBLIC IN A WAY TO WHERE THEY UNDERSTAND WHAT'S GOING ON, BUT THINKING OUT OF THE BOX AND HOW WE ENGAGE THEM AROUND THIS PARTICULAR TOPIC. BECAUSE LIKE I SAID, IF YOU WANT TO GET INTO A FIRESTORM ON FACEBOOK, START TALKING ABOUT TAXES, YOU KNOW, IN DESOTO AND EVERY CITY HAS THESE CONVERSATIONS, RIGHT? BUT HOWEVER, THIS IS DESOTO, SO THIS IS WHERE OUR JURISDICTION IS. SO JUST LOOKING AT HOW WE CAN MAYBE BETTER ENGAGE OUR RESIDENTS NOW IN SOME WAYS. IN TERMS OF, OF THAT PARTICULAR PIECE, BECAUSE LIKE I SAID, WE, WE LOVE IT AND IT'S GREAT, BUT OBVIOUSLY WE KNOW THAT TIME BRINGS ABOUT A CHANGE AND, AND NOT TO SAY THAT WE, WE WILL, BUT JUST KIND OF EASING IT INTO THEM, YOU KNOW, ADDING A LITTLE BIT OF SUGAR IN THE MEDICINE. SO UNDERSTOOD. GET IT TO GO DOWN A LITTLE BIT SMOOTHER. IT SHOULD THAT HAVE TO BE THE CASE. ALL RIGHT. THANK YOU, MR. CITY MANAGER. YES. COUNCIL MEMBER THANK YOU, MADAM MAYOR. YOU BRING UP A VERY GOOD POINT AROUND PROPERTY TAXES. AND AS FAR AS EDUCATING OUR RESIDENTS, COULD WE ALSO TAKE A LOOK AT OUR SCHOOL TAX? BECAUSE WE ALWAYS HAVE TALKED ABOUT PROPERTY TAX AND THE TAX 101. BUT IF WE COULD ALSO TAKE A LOOK AT EDUCATING OUR RESIDENTS ABOUT PROPERTY. OH. EXCUSE ME. SCHOOL TAX. JUST OVERALL UNDERSTANDING OUR TAX IN DESOTO. I THINK THAT WOULD BE VERY HELPFUL. COUNCIL MEMBER NORTH. I THINK WHAT YOU BRING UP A GOOD ADDITION TO THAT POINT. I THINK MAYBE HELPING THEM UNDERSTAND HOW THEIR THAT FINAL DOLLAR AMOUNT THAT THEY PAY. RIGHT. HOW DOES THAT HAPPEN? BECAUSE THERE IS A LOT OF MISINFORMATION, MISUNDERSTANDING, YOU KNOW, BECAUSE THE CITY I FEEL LIKE, YOU KNOW, MY, MY ARGUMENT IS ALWAYS, WELL, WE'VE DONE OUR PART. WE'VE KEPT OUR TAX RATE, YOU KNOW, SOLID, BLAH, BLAH, BLAH. A LOT OF WHAT THEY SEE WHEN THEY SEE THESE BIG JUMPS OFTENTIMES IS BECAUSE OF THE ASSESSED VALUE, NOT NECESSARILY BECAUSE WE'VE DONE ANYTHING WITH OUR TAX RATE. AND SO HELPING PEOPLE UNDERSTAND HOW THAT NUMBER COMES UP ON THEIR FINAL BILL, WHETHER THAT'S OUR RATE, THE COUNTY, THE SCHOOL DISTRICT, THE EXEMPTIONS THAT THEY MAY QUALIFY FOR. HELPING THEM UNDERSTAND HOW ALL OF THAT COMES INTO PLAY, BECAUSE THEY JUST SEE THE NUMBER AND THEY ASSUME WE HERE AT CITY HALL HAVE DONE SOMETHING, YOU KNOW, TO, TO MAKE THAT NUMBER WHAT IT IS WHEN WE HAVE A PART TO PLAY IN IT. BUT WE'RE NOT THE FINAL, YOU KNOW, WE'RE NOT THE END ALL, BE ALL. AND WHAT THEY END UP PAYING ON THEIR TAXES. AND SO HELPING THEM UNDERSTAND THAT, BECAUSE THAT'S THE BIGGEST MISCONCEPTION THAT I SEE, LIKE ON SOCIAL MEDIA, ON PLATFORMS, FORUMS, AND JUST EVEN TALKING WITH RESIDENTS, RIGHT? IS THAT THEY ASSUME THAT WE HAVE THE FINAL DETERMINATION ON WHAT THEY PAY ON THEIR TAX BILL WHEN THAT'S NOT IN AND OF ITSELF. THE FACTS ON HOW THEY GET THAT FINAL BILL. COUNCIL MEMBER PARKER AND THEN I'M GOING TO CALL ON COUNCIL MEMBER NORTH. WERE YOU DONE? COUNCIL MEMBER NORTH. YES. OKAY. SURE. OKAY. JUST ONE QUICK SUGGESTION THOUGH I DO WANT TO ASK WHEN WE'RE TALKING ABOUT THE CIP AND THAT LIST, I KNOW YOU BROUGHT UP THE 2025 2026. IS THERE A POSSIBILITY THAT THERE COULD BE SOME COLOR CODING TO SAY WHAT ITEMS HAVE ACTUALLY BEEN DONE. BECAUSE SOMETIMES WHEN YOU'RE TALKING TO PEOPLE ABOUT WHAT WE HAD TO TAKE OUT, WHAT WAS DONE ACTUALLY GIVES THEM A DIFFERENT PICTURE THAN JUST A LIST OF THESE ARE ALL THE ITEMS THAT WERE FOR THAT. HOW MUCH OF THAT IS COMPLETED BEFORE WE DO SOMETHING NEW? I APPRECIATE YOU. SURE, WE CAN DO THAT. THANK YOU. AND JUST FOR CLARIFICATION, THE CIP LIST IS OUR INITIAL LIST BASED ON PRIORITIES THAT HAVE BEEN DISCUSSED IN IN THE PAST WITH THE CITY COUNCIL. THIS IS NOT JUST A I MEAN, IT'S GIVING YOU A SNAPSHOT OF WHAT COULD BE OR WHAT COULD LOOK LIKE, BUT IT'S UP TO THE CITY COUNCIL, OBVIOUSLY TO AGREE ON OR APPROVE THAT CIP LIST AND, AND THE FUNDING FOR THAT LIST MOVING FORWARD. THE OTHER THING. MAYOR, I APPRECIATE IT. I THINK YOUR, YOUR SENTIMENT ON, ON BREAKING DOWN THE BILL, MAY BE. THE OPPORTUNITY FOR US IS CREATE A PIE CHART AND SHOWING WHERE YOU KNOW, WHERE THE THE TAX BASICALLY WHERE YOUR TAXES ARE GOING UP THAT 2.78 AND OF THAT IS THE 0.68486849 $0.34 THAT IS GOING TO THE CITY. [02:00:03] AND THIS IS WHAT YOU KNOW, YOUR TAX FROM THE CITY IS GOING TO WHAT SERVICES. AND SO MAYBE KIND OF AN ILLUSTRATION OF VIDEO COULD COULD DO A WORLD OF GOOD. THE OTHER THING IS THAT I KNOW WE'RE GOING TO BE FORTUNATE TO HOST A JOINT A JOINT DISCUSSION ON TAXES WITH THE COUNTY ASSESSOR EARLY THIS MONTH. YES. SO THAT'S GOING TO, YOU KNOW, WE'RE GOING TO LEARN A LOT FROM THAT AS WELL. MAYBE WE COULD UTILIZE SOME OF THAT INFORMATION FOR THE FUTURE. THERE WILL CERTAINLY BE MORE EDUCATION AROUND THAT TOPIC. YES. I SEE A MEMBER OF OUR LIBRARY AND IT JUST SPARKED AN IDEA ABOUT. AND AGAIN, I STILL DON'T KNOW WHAT WE COULD DO. I FEEL LIKE THERE'S A WAY THAT OUR LIBRARY COULD PROBABLY HELP US ENGAGE THE PUBLIC AS WELL, BECAUSE THEY HAVE A LOT OF MOMS AND PARENTS AND HOME SCHOOLERS AND A LOT OF PEOPLE THAT COME THROUGH THERE EVERY SINGLE DAY. SO MAYBE THERE'S A WAY WHERE WE COULD PUT SOME INFORMATION OR CARDS OR BULLETIN, MAYBE EVEN COMING INTO THE LIBRARY. I KNOW WE PUT OUT A LOT OF TIMES AND DIFFERENT DISPLAYS. MAYBE THAT'S A DISPLAY, RIGHT? DURING BUDGET SEASON OR GOING INTO BUDGET SEASON SO THAT IT CATCHES OUR ATTENTION. AND MAYBE THERE ARE THINGS THAT RESIDENTS CAN TAKE WITH THEM IN TERMS OF FLIERS, THINGS LIKE THAT. BUT I THINK WE'RE DEFINITELY NOT MAXIMIZING OUR LIBRARY ENOUGH, CONSIDERING THE PATRONS THAT WALK THROUGH THERE EVERY SINGLE DAY, PROBABLY EVEN MORE SO THAN THEY COME IN CITY HALL EVERY SINGLE DAY. OUR LIBRARY IS ALWAYS A VERY HIGH TRAFFIC AREA WITH OUR IDEAL TARGET AUDIENCE IN TERMS OF THE PEOPLE WE'RE TRYING TO GET THIS INFORMATION TO. SO I DEFINITELY THINK I WOULD LOVE TO SEE US EXPLORE A WAY TO WORK WITH OUR LIBRARY. THEY'RE VERY CREATIVE OVER THERE AS WELL. SO TO EXPLORE OUR BUDGET AND HOW WE CAN MAKE OUR BUDGET COME TO LIFE IN OUR LIBRARY, FOR SURE. DURING A CERTAIN, MAYBE A CERTAIN TIME OR SEASON. FOR THE PROPERTY TAX THING, SINCE WE WON'T HAVE ANOTHER MEETING BEFORE THAT, IS THAT PARTICULAR MEETING GOING TO BE HELD BOTH IN PERSON AND STREAMED? SO NO, THERE. I TALKED WITH THE COUNTY JOHN AMES MYSELF AND THEY ARE NOT FOR WHATEVER REASON HE DID NOT GIVE ME A REASON. THEY ARE NOT ABLE TO DO THAT MEETING VIRTUALLY. IT HAS TO BE IN PERSON. HOWEVER, HE DID SAY THEY COULD DO A VIDEO. AND I GUESS WE WOULD BE ABLE TO REPLAY IT AND SHARE IT ON DIFFERENT PLATFORMS. BUT THAT PARTICULAR MEETING? NO, BECAUSE I ASKED THE QUESTION MYSELF. SO IT'S NOT IN HERE. IT WILL. I'M NOT SURE WHETHER IT WILL BE IN HERE, BUT I'M SAYING THEY ARE NOT ABLE TO LIVE STREAM IT. IT'S ON APRIL 6TH HERE AT THE COUNCIL CHAMBERS. RIGHT AT 530. RIGHT. BUT IS IT IS IT YOU SAYING IT'S NOT GOING TO BE. IT'S NOT GOING TO BE STREAMED. NO, IT WILL NOT BE STREAMED. AND THAT WAS THAT WAS FROM JOHN MS HIMSELF. THEY WILL NOT. AND I AND I TOLD, YOU KNOW, I'M ALWAYS THINKING ABOUT OUR HOMEBOUND RESIDENTS, PEOPLE THAT ARE MAY NOT HAVE THE MOBILITY THEY NEED TO MAKE IN-PERSON MEETINGS, BUT HE, HE, HE TOLD ME WITHOUT A DOUBT, UNEQUIVOCALLY, IT CANNOT BE LIVE STREAMED. WHAT HE COULD DO IS AT A LATER DATE OR TIME, DO ONE THAT IS ABLE TO BE VIDEOED. BUT THIS PARTICULAR ONE, FOR WHATEVER REASON THEY HAVE, THEY'RE NOT THEY WILL NOT DO IT. THEY WILL NOT LIVE AS LONG AS. AND I, AND I HEAR YOU, I DO. I UNDERSTAND THE ONLY REASON I WAS ACTUALLY ASKING THAT IS BECAUSE WHEN WE ARE TALKING ABOUT PROPERTY TAXES, WE DIDN'T GET A LOT AROUND IT. AND IT IS A BIG ISSUE FOR DE SOTO AND ALL OF THE INFORMATION THAT PEOPLE NEED TO KNOW. BUT WE ALSO NEED TO MAKE CERTAIN THAT IT HAS THE DISABILITIES, PEOPLE WHO, WHO MIGHT NOT BE, THEY'RE DIFFERENTLY ABLED. BEING ABLE TO ACTUALLY VIEW THIS, THAT CAN'T MAKE IT HERE, BUT ALSO MAYBE CAN'T HEAR HERE. OR MAYBE CAN'T SEE. JUST HAVING A WAY FOR PEOPLE WHO ARE IN THESE PROPERTIES TO KNOW ABOUT THEIR PROPERTY TAXES OTHER THAN HAVING TO BE PHYSICALLY HERE. SURE. THAT WAS MY INTENT WAS TO MAKE SURE THAT THOSE RESIDENTS WERE ACCOMMODATED. SO WE'LL BE LOOKING FORWARD TO THE VIDEO. AND THE OTHER THE OTHER OPTION THAT HE GAVE MAYOR WHAT WE CAN DO, WE CAN CREATE AN EDUCATIONAL CAMPAIGN ABOUT PROPERTY TAXES WILL COORDINATE WITH THE LIBRARY. WE'LL WORK WITH FINANCIAL SERVICES AND REACH OUT TO THE COUNTY AND COME UP WITH WITH A PLAN. THANK YOU. OKAY. THANK YOU, MISS SUTTON. THANK YOU. NEXT, MADAM CITY SECRETARY, WE HAVE OUR CONSENT AGENDA. I'M GOING TO LET YOU READ THAT OUT, BUT I JUST WANT TO THROW THIS OUT THERE. THIS IS OUR FINAL ITEM ON THE AGENDA TONIGHT. COUNCIL. AFTER THAT IS THE ADJOURNMENT. JUST PUTTING IT OUT THERE. THANK YOU, MADAM CITY SECRETARY. SEEING YOUR HAND. AS MAYOR STATED, WE ARE NOW HEADING INTO THE CONSENT AGENDA. [4. CONSENT AGENDA] CONSIDER ACCEPTING THE FISCAL YEAR 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT AND SINGLE AUDIT REPORT. CONSIDER AN ORDINANCE AMENDING THE FISCAL YEAR 2025 2026 ADOPTED BUDGET IN THE GENERAL FUND 101 BY $171,365 FOR ADDITIONAL PERSONNEL NEEDED FOR DAILY OPERATIONS OF THE TOWN CENTER AND PROGRAMING ASSIGNED TO THE ART AND ORDINANCE OF THE CITY OF DESOTO, TEXAS, AUTHORIZING CERTAIN BUDGET AMENDMENTS PERTAINING TO FISCAL YEAR 2025 2026. [02:05:09] ADOPTED BUDGET AND PROVIDING FOR AN EFFECTIVE DATE. CONSIDER AN ORDINANCE AMENDING THE FISCAL YEAR 2025 2026 ADOPTED BUDGET IN THE GENERAL FUND 101, IN THE AMOUNT OF $44,000 TO FUND INTERNET CONNECTIVITY SERVICES AT THE AQUATICS AND RECREATION CENTER. ASK FOR AN EIGHT MONTH PERIOD. AN ORDINANCE OF THE CITY OF DESOTO, TEXAS, AUTHORIZING CERTAIN BUDGET AMENDMENTS PERTAINING TO THE FISCAL YEAR 2025 2026 ADOPTED BUDGET AND PROVIDING FOR AN EFFECTIVE DATE. THANK YOU. THANK YOU, MADAM SECRETARY. YES, I SEE A LIGHT COUNCIL IS THERE ANY QUESTIONS OR CLARIFICATION NEEDED ON ANY ITEM ON THE CONSENT AGENDA? HEARING NONE, I'LL TAKE A MOTION. MADAM MAYOR, I MOVE THAT WE APPROVE AS PRESENTED. I'LL SECOND IT. IT'S BEEN MOVED BY COUNCIL MEMBER, SECONDED BY COUNCILMAN WATERS TO APPROVE AS PRESENTED COUNCIL. ALL IN FAVOR, PLEASE SAY AYE. AYE. ALL OPPOSED? SAME SIGN. THAT MOTION PASSES UNANIMOUSLY. THANK YOU. COUNCIL. IT IS 8:17 P.M.. I WILL ENTERTAIN A MOTION TO ADJOURN. SO MOVED. SECOND, IT'S BEEN MOVED BY COUNCIL MEMBER, SECOND BY COUNCIL MEMBER NORTH TO ADJOURN COUNCIL. ALL IN FAVOR, PLEASE SAY AYE. AYE. ALL OPPOSED? SAME SIGN. THAT MOTION PASSED UNANIMOUSLY. IT'S 8:17 P.M. COUNCIL. WE ARE NOW ADJOURNED. THANK YOU ALL. EVERYONE, HAVE A GREAT EVENING. * This transcript was compiled from uncorrected Closed Captioning.