Jul 31, 2026 City Council Special Meeting

[00:00:07]

THERE SHE IS. GOOD MORNING EVERYBODY. I'M MAYOR RACHEL PROCTOR AND I WANT TO WELCOME YOU EARLY ON FRIDAY MORNING TO OUR BUDGET MEETING. I'M GOING TO ASK IF OUR CITY SECRETARY WILL GIVE US A ROLL CALL, PLEASE. MAYOR RACHEL PROCTOR. HERE, MAYOR PRO TEM LETICIA HUGHES HERE. DEPUTY MAYOR PRO TEM KEN WATERS, COUNCIL MEMBER. PARKER COUNCIL MEMBER BRIAN WESLEY HERE. COUNCIL MEMBER DEBORAH NORTH HERE, COUNCIL MEMBER CRYSTAL CHISM. THANK YOU.

AT THIS TIME, WE'LL HAVE THE FIRST ITEM ON OUR. WELL, I'M GOING TO TURN IT OVER INTO THE HANDS OF OUR FINANCE DIRECTOR, MISS SUTTON. GOOD MORNING. GOOD MORNING EVERYONE. THANK YOU FOR BEING HERE EARLY TODAY. AND WELCOME TO OUR BUDGET WORKSHOP FOR FY 2027. BEFORE I GET STARTED, I WOULD LIKE TO THANK. I AM CAMERON, OUR INTERIM CITY MANAGER, FOR ALL OF HIS WORK AND WORKING WITH ME WITH THIS BUDGET AND ALSO MY STAFF, ASHLEY BLANTON, OUR BUDGET ADMINISTRATOR, AS WELL AS ANGIE PENTON, OUR ASSISTANT FINANCE DIRECTOR. I REALLY APPRECIATE THEIR WORK ON THIS. WE CAN JUMP RIGHT INTO THE AGENDA FOR TODAY. HERE YOU WILL SEE OUR SCHEDULE FOR TODAY. WE ARE GOING TO BE RUNNING THROUGH AND DOING A RECAP OF THE FISCAL YEAR 2026 BUDGET, LOOKING AT WHERE WE STAND RIGHT NOW, BRINGING US FORWARD INTO 2027. WE'RE GOING TO LOOK AT OUR BUDGET, THEMES AND STRATEGIES AND PRIORITIES, OUR BUDGET AND WORKFORCE HIGHLIGHTS FOR FY 27. WE'RE GOING TO TAKE A LOOK AT ASSESSED VALUATION AND A RECOMMENDED TAX RATE DEBT SERVICE FUND, GENERAL OPERATING BUDGET, ENTERPRISE FUNDS. IN ADDITION TO THE CIP PROGRAM, WE'RE GOING TO DISCUSS CDC BUDGET AND WORK PLAN, SPECIAL REVENUE FUNDS, OTHER FUNDS, AND THE PARKS AND RECREATION DEPARTMENT HIGHLIGHTING THE ARC TOWN CENTER, SENIOR CENTER AND OTHER PARK FACILITIES. TO START, WE'RE GOING TO LOOK AT WHAT HAS CHANGED SINCE JULY 9TH, WHEN THE COUNCIL RECEIVED THEIR BUDGET BOOKS. AND I'M SORRY TO INTERRUPT. I WANT TO MAKE SURE WE SET A PRECEDENT FOR QUESTIONS. DO YOU WOULD YOU PREFER THAT WE ALLOW YOU TO FINISH ONE SECTION AND THEN IF YOU HAVE IT, OPEN IT UP FOR QUESTIONS OR. SURE. OKAY. AND COUNCIL, YOU DON'T HAVE TO WAIT ON ME TO CALL YOU ONCE SHE'S COMPLETED OR ONCE THEY'VE COMPLETED THEIR EACH SECTION. YOU CAN JUST FEEL FREE TO ASK YOUR QUESTIONS AT THAT TIME. THANK YOU. SINCE DELIVERY OF THE BUDGET BOOKS WE HAVE MADE ESSENTIALLY ONLY ONE CHANGE IN THE GENERAL FUND. WE NEED AN ADDITIONAL $8,000 TO ADD TO THE FIRE DEPARTMENT'S TRAINING AND TRAVEL STRICTLY FOR DEPLOYMENTS. THAT EXTRA $8,000 WILL DEFINITELY BE REIMBURSED, BUT IT IS AN EXPENSE THAT WE'LL HAVE TO MAKE. SO WE DID ADD THAT TO THE GENERAL FUND BUDGET. THE OTHER FUNDS OVER ON THE RIGHT SIDE, YOU'LL SEE FUND 124 AND 125. THOSE ARE TWO FUNDS THAT RECEIVE SALES TAX DOLLARS. SO WE WENT IN AND DID AN ADJUSTMENT TO SALES TAX, ADDING ABOUT 3% TO EACH FUND. 124 IS THE DESOTO PARK DEVELOPMENT CORPORATION FUND. THEY'RE GOING TO BRING IN ABOUT $1 MILLION IN SALES TAX REVENUE, AND THE DDC WILL BRING IN ABOUT 2.8 MILLION IN SALES TAX REVENUE FUND. 305 THE ONLY CHANGE THAT WE MADE THERE WAS TO APPLY THE PROPOSED TAX RATE, TO BRING IN THE THREE 13.9 MILLION IN THE INS FUND.

THAT'S FUND 305 AS WELL AS WE REMOVED A TRANSFER FROM THE GENERAL FUND OF $199,000. THAT WAS FOR A PIECE OF EQUIPMENT THAT HAS BEEN PAID OFF. SO WE WON'T HAVE THAT EXPENSE IN FISCAL YEAR 27 AND FUND 522. THAT IS THE DRAINAGE FUND. WE ADDED SOME MONEY FOR REPAIR AND MAINTENANCE. AS YOU ARE AWARE, WE HAVE A SIGNIFICANT AMOUNT OF DRAINAGE PROJECTS THAT ARE ON THE HORIZON FOR FY 27, WE ADDED. IN ADDITION TO THAT DRAINAGE ENGINEER AND, MONEY FOR A LAPTOP FOR THAT NEW POSITION. YOU WILL NOTE THAT IN YOUR BUDGET BOOK YOU HAVE, YOU WILL

[00:05:03]

SURPLUS. WE MADE SOME REVISIONS IN FISCAL YEAR 26. ONE OF THE BIGGER REVISIONS WAS ABOUT $1 MILLION THAT WE ADDED FOR OUR OPERATIONS. AND WHEN WE ADDED THAT, THAT DID CREATE, A DEFICIT BUDGET. WE ARE NOT IN A DEFICIT AS WE SPEAK. WE STILL HAVE A COUPLE OF MONTHS LEFT IN FISCAL YEAR 26, BUT WE DID BUDGET AT A DEFICIT IN ORDER TO GIVE US THE ABILITY TO HIRE FOR THOSE 49 POSITIONS THAT WE ADDED. BRINGING US TO ACTUALS, OUR OPERATING REVENUE 62,000,178 853, COMPARED TO THE EXPENDITURES OF 53.7 MILLION. AND YOU CAN SEE PROPOSED HERE FOR FY 2027, 74.3 MILLION IN REVENUE, 74 MILLION IN EXPENSES, LEAVING US WITH 299,831 IN A SURPLUS. ARE THERE ANY QUESTIONS SO FAR? NO. HOWEVER, WE WE DO RECOGNIZE THE NOISE FROM THE ROOF WORK. INTERIM CITY MANAGER CAMERON IS GOING TO CHECK TO SEE IF THEY CAN MOVE JUST TEMPORARILY, JUST SO THAT WE DON'T HAVE THOSE INTERRUPTIONS. HOWEVER, WE DO RECOGNIZE THERE IS BACKGROUND NOISE. THANK YOU. DO WE WANT TO KEEP GOING? OKAY. NOW LET'S TAKE A LOOK AT OUR FUND BALANCE HISTORY FOR THE VARIOUS FISCAL YEARS THAT YOU SEE LISTED HERE.

YOU CAN SEE THE ENDING FUND BALANCE. THIS WAS AT THE END OF THE AT OF THE BUDGET YEAR AFTER THE AUDIT HAD BEEN COMPLETED IN FISCAL YEAR 22, WE ENDED WITH 26.6 MILLION IN 2023, 25.8 AND 2024, WE JUMPED UP TO 32 MILLION. AND AS OF THE END OF THIS LAST AUDIT, WE HAD 33.7 MILLION. SO DO WE MEET? ARE WE BELOW OR ARE WE ABOVE OUR POLICY AMOUNTS? EACH ONE OF THESE YEARS WE WERE ABOVE. SO EACH ONE OF THOSE YEARS IN THE SUMMER, YOU SAW AN ORDINANCE COME FORWARD TO YOU TO SAY, HEY, THIS IS WHERE WE THOUGHT WE WOULD BE. THIS IS WHERE OUR TARGET WAS. WE ENDED UP ABOVE. WHAT CAN WE DO WITH THE EXCESS FUNDS THAT WE HAVE? AND THESE ARE SOME OF THE WAYS THAT WE'VE CHOSEN TO SPEND THOSE EXCESS FUNDS. OVER THE YEARS. WE'VE DONE, WE'VE EARMARKED MONEY FOR HAMPTON ROAD DEVELOPMENT, STREET REPAIR. THAT'S A VERY POPULAR ONE. STREET REPAIR AND MAINTENANCE. THAT'S SOMETHING THAT'S NEEDED EVERY YEAR.

CAPITAL EQUIPMENT, VEHICLES, MOBILE SPEED, RADAR SIGNS. THESE ARE SOME OF THE THINGS THAT WE'VE USED THOSE DOLLARS FOR. SO LET'S TAKE A LOOK AT THE FUND BALANCE HISTORY AND HOW IT RELATES TO, BEING ON TARGET AND, HOW THAT COMPARES TO FISCAL YEAR 26 REVISED BUDGET AND BEING ON TARGET. SO ON THE LEFT SIDE, YOU'LL SEE WHAT HAPPENED WITH THE ORIGINAL BUDGET. WE CAME INTO THE YEAR WITH 33.7 MILLION. WE WERE ORIGINALLY BUDGETED TO HAVE 382,000 OVER TO END, WITH 34.1 MILLION. AND THEN WHERE DOES THAT PUT US? THIS 31.2 MILLION WOULD BE OUR TARGET. OKAY. THAT WOULD BE OUR TARGET. THAT WOULD BE THE NUMBER THAT WE'RE

[00:10:04]

AND OUR CURRENT RATE IS 0.6849344 PER $100 OF ASSESSED VALUATION. NOW THE SALES TAX CALCULATION I'M SORRY, THE PROPERTY TAX CALCULATION HAS NOT BEEN FULLY IT HAS NOT BEEN COMPLETED YET. WE DO HAVE OUR ASSESSED VALUES, BUT WE ARE DEFINITELY STILL WORKING WITH THE COUNTY TO KIND OF SEE WHERE WE'RE GOING TO END. IT HAS A LOT TO DO AS WELL WITH WHERE WHERE OUR DEBT SERVICE RATE IS GOING TO END. AND I'LL TALK A LITTLE BIT MORE ABOUT THAT LATER, BUT WE WILL LOOK AT EXPLORING CURRENT RATE ASSUMPTIONS AND ALTERNATIVES FOR A POSSIBLE INCREASED TAX RATE. THERE IS NOT AN INCREASED TAX RATE IN THE IN THE PROPOSED BUDGET. AS IT STANDS NOW. AS IT STANDS NOW, WE WOULD LOVE TO TO KEEP IT HERE AT THE .68. BUT AGAIN, THAT'S THAT'S YET TO BE DETERMINED. WE ARE ALSO GOING TO BE LOOKING AT, OF COURSE, YOU'VE SEEN PRIORITY BASED BUDGETING THAT WAS INTRODUCED THIS FISCAL YEAR. WE INTRODUCED THAT MODEL USING, WE APPLIED IT TO OUR SUPPLEMENTAL REQUEST PROCESS PROCESS. WE ARE PRESENTING A BALANCED BUDGET FOR FY 27. WE'RE GOING TO BE APPLYING IT TO THE BUSINESS PLAN PRIORITIES AND THE STRATEGIC PLAN. WE ALSO HAVE A FEE ADJUSTMENT WITHIN UTILITIES THAT WE'LL SPEAK ABOUT LATER THIS AFTERNOON. THESE ARE OUR STRATEGIC PRIORITIES HERE.

LISTED STRATEGIC GOALS ONE THROUGH SEVEN. THESE ARE OUR COUNCIL LED VISION MISSION AND VALUES. AND YOU CAN SEE WHAT THEY ARE LISTED HERE. WE WILL HAVE A FORMAL BUSINESS PLAN THAT WILL BE ADOPTED AT SOME POINT SHORTLY AFTER THE BUDGET IS ADOPTED. WE'RE STILL WORKING THROUGH THAT DOCUMENT AND FINALIZING IT, BUT FOR NOW, THESE ARE DEFINITELY OUR STRATEGIC PRIORITIES THAT WE'RE FOCUSING ON. WE HAVE A LOT OF QUESTIONS, REGARDING, YOU KNOW,

[00:15:11]

VALUE FOR TAX DOLLARS. STREETS AND SIDEWALKS AND LIGHTING. CODE ENFORCEMENT, WHICH WE DEFINITELY ARE ADDRESSING IN THIS BUDGET, AS WELL AS OTHER PRIORITIES SUCH AS PUBLIC SAFETY, CODE ENFORCEMENT AND WATER AND SEWER INFRASTRUCTURE. I WANTED TO PROVIDE A COMPREHENSIVE LIST OF OUR PERSONNEL CHANGES THAT ARE BEING PROPOSED IN THIS BUDGET FOR THE FIRE DEPARTMENT. I'LL GO OVER THESE IN MORE DETAIL WHEN WE GO TO THE DEPARTMENTAL HIGHLIGHTS, BUT I DID WANT TO INCLUDE THEM COMPREHENSIVELY HERE. FIRE DEPARTMENT. WE'RE ADDING FIVE ADDITIONAL POSITIONS AND ONE RECLASSIFICATION. THE FIVE POSITIONS ARE FIVE FIRE FIREFIGHTER PARAMEDIC POSITIONS. IN ADDITION TO A RECLASSIFICATION FROM AN ADMINISTRATIVE ASSISTANT FROM PART TIME TO FULL TIME. AND THAT ONE IS FINANCED OUT OF THE FIRE TRAINING FUND. AND IT WE'RE INTRODUCING A GIS ANALYST IN PARKS AND RECREATION, JUST TWO CLASSES. WE ADDED MOST POSITIONS THAT WE NEEDED THIS FISCAL YEAR. SO FOR NOW, JUST TWO CLASSES, TWO LIFEGUARDS FROM GRADE 101 TO HEAD LIFEGUARD GRADE 102 IN THE POLICE DEPARTMENT, POLICE OPERATIONS, ADDING TWO POLICE OFFICERS, CERTIFIED POLICE OFFICERS, AS WELL AS ONE CODING SENIOR CODE ENFORCEMENT OFFICER.

IN DEVELOPMENT SERVICES. WE HAVE TWO RECLASSIFICATIONS AND WE'RE ADDING AN ENGINEER ASSISTANT AT GRADE 111, A MUNICIPAL COURT. WE'RE RECLASSIFYING A DEPUTY COURT CLERK, GRADE 105 TO COURT SUPERVISOR, GRADE 108 IN COMMUNITY SERVICES AND ENGAGEMENT. WE'RE ADDING A PART TIME OR POTENTIALLY A FULL TIME. WE'RE STILL TALKING THROUGH THAT, BUT DEFINITELY AN ADDITIONAL POSITION FOR ENVIRONMENTAL HEALTH SPECIALIST AND SANITATION. ONE CODE ENFORCEMENT OFFICER. IN FINANCIAL SERVICES, ONE CLASS RECLASSIFICATION FROM A PART TIME TO A FULL TIME FINANCE ASSISTANT IN CITY SECRETARY'S OFFICE, A RECORDS MANAGEMENT OFFICER, FULL TIME PUBLIC UTILITIES TWO POSITIONS A CREW LEADER FOR UTILITY MAINTENANCE AND A MAINTENANCE WORKER MAINTENANCE UTILITY WORKER, AND THE DRAINAGE FUND, A DRAINAGE AND DEVELOPMENT ENGINEER. NOW TO MOVE INTO THE WORKFORCE.

HIGHLIGHTS. WITH THESE HIGHLIGHTS, YOU WILL SEE THE POSITION THAT IS BEING ADDED OR RECLASSIFIED. RECLASSIFIED FOR THAT DEPARTMENT. IN ADDITION TO ANY OTHER HIGHLIGHTS THAT ARE INCLUDED IN THAT, WE WANTED TO MAKE A LITTLE BIT MORE PRONOUNCED IN THE BUDGET FOR MUNICIPAL COURT, FOR MUNICIPAL COURT. AGAIN, I'M SORRY, WE HAVE THE RE CLASS OF, SENIOR DEPUTY COURT CLERK, 105 TO COURT SUPERVISOR, 108 FOR THE REPLACING OF MARSHAL VEHICLE AND NEW EQUIPMENT FOR THE ADDITIONAL MARSHAL THAT WAS HIRED DURING THIS FISCAL YEAR FOR I T WE NEED A GIS ANALYST. THIS WAS SOMETHING THAT WE LOOKED AT IN FISCAL YEAR 25, AND WE DIDN'T HAVE A CHANCE TO ADD THAT ONE. SO IT'S VERY CRITICAL THIS YEAR THAT ONE IS GOING TO STRENGTHEN THE DEPARTMENT'S ABILITY TO KEEP UP WITH THE GROWING DEMANDS OF THE GIS SERVICES. THEY ARE GOING TO PLAY A CRITICAL ROLE IN SUPPORTING THE GOALS OF MAPPING DESOTO'S FUTURE 2027, AND IT WILL IMPROVE HOW DATA IS INTEGRATED IN THE SYSTEMS IN THE DIFFERENT SYSTEMS, SUCH AS THE ERP AND THE CAD SYSTEM. SO THAT ONE IS VERY CRITICAL FOR THIS YEAR. ALSO, ANNUAL COSTS FOR A NEW HOSTED PHONE SYSTEM IS SOMETHING THAT WE'VE BEEN LOOKING AT FOR A COUPLE OF YEARS AS WELL. WE DID ADD THAT FOR FISCAL YEAR 27, FOR 200,000, AND THEN COMPUTER SOFTWARE, TELEPHONE MAINTENANCE, THINGS OF THAT NATURE, OTHER INCREASES

[00:20:05]

INCREASED COSTS AS WELL. YOU'LL SEE SOME OF OUR PROFESSIONAL SERVICES INCREASE ARE RELATED TO THE, DALLAS CENTRAL APPRAISAL DISTRICT IN OUR CONTRACT WITH THEM. AND DEVELOPMENT SERVICES, WE HAVE THE ENGINEERING DIVISION, THE FLEET DIVISION AND FACILITIES ALL LISTED HERE IN ENGINEERING. WE ARE LOOKING AT HAVING ACTUALLY A SAVINGS OF $28,000 REDUCTION IN PROFESSIONAL SERVICES. WE ARE REDOING A CLASS A PART TIME ROLE HAS, HAS HAD TO TAKE ON EXPANDED RESPONSIBILITY. SO WE'RE DOING A RECLASSIFICATION THERE. THE WORK ASSOCIATED WITH THAT POSITION HAS EXPANDED WITH THE OPENING OF THE ARC. SO OTHER SAVINGS AND OTHER ADDITIONS ARE LISTED HERE AS WELL. FOR DEVELOPMENT SERVICES, THERE WILL BE A FACILITIES CONDITION ASSESSMENT AND THE FACILITIES MASTER PLAN. SO IN THAT LINE ITEM YOU'RE GOING TO SEE AN INCREASE OF 130,000. CONTINUING ON WITH DEVELOPMENT SERVICES.

ONE HIGHLIGHT HERE IS DEFINITELY THE ENGINEER ASSISTANT POSITION. AS YOU'RE AWARE, WE HAVE SEVERAL CAPITAL PROJECTS GOING ON. WE'RE DELIVERING OVER $60 MILLION IN ACTIVE CIP PROJECTS RIGHT NOW, INCLUDING THE WESTMORELAND ROAD CONSTRUCTION, 22 MILLION IN DANIEL DALE PROJECTS, TRAFFIC LIGHT SIGNALIZATION PROJECTS, AND ALSO THE NEWLY IMPLEMENTED INFRASTRUCTURE MANAGEMENT PROGRAM. SO THE ENGINEERING ASSISTANT WILL BE ADDING TO THIS BUDGET AND WILL REPORT TO THE CITY ENGINEER. INCREASES IN DEVELOPMENT SERVICES THAT ARE DUE TO THE AAC. THE AQUATICS AND RECREATION CENTER ARE LISTED AS WELL. $56,000 IN MAINTENANCE SUPPLIES, $40,000 IN RENTALS, EQUIPMENT AND SUPPLIES, AND 16,000 FOR REPAIR AND MAINTENANCE AND POWER WASHING OF THE CITY FACILITIES. IN THE POLICE DEPARTMENT. THE

[00:25:06]

WITH THE ADDITION OF THOSE FIVE FIREFIGHTER POSITIONS. ALSO, I WANT TO MENTION THE CODE ENFORCEMENT OFFICER THAT'S BEING ADDED TO CODE ENFORCEMENT AT THE PD. IT IS GOING TO SERVE AS A PRIMARY POINT OF CONTACT FOR COMMERCIAL PROPERTIES, CONSTRUCTION PROPERTIES WITHOUT PERMITS AND FUNCTION AS A FIELD MENTOR, REINFORCING THE PROCEDURES. THIS POSITION HAS BEEN HIGHLY ANTICIPATED AND WE'RE EXCITED TO ADD IT FOR FISCAL YEAR 27. FOR PARKS AND RECREATION. OUR HIGHLIGHT IN PARKS IS DEFINITELY AQUATICS AND RECREATION CENTER. YOU'LL SEE THAT THE TOTAL BUDGET FOR PARKS EXPENDITURES FOR FY 27 IS $9,375,576, 3 MILLION OF. THAT IS SPECIFICALLY FOR OUR OPERATIONS, WE'VE ADDED $50,000 IN THE BUDGET SPECIFICALLY FOR PROFESSIONAL SERVICES RELATED TO A PROFORMA. WE'RE GOING TO TALK MORE ABOUT THE NEED FOR THAT AS IT RELATES TO BEING ABLE TO ACCURATELY PROJECT OUR REVENUE AND OUR EXPENSES AT THE ARC. AGAIN, THE RECLASSIFICATION OF THOSE TWO LIFEGUARDS, THERE'S GOING TO BE A FOCUS ON YOUTH PROGRAMING AT TOWN CENTER. OF COURSE, WE KNOW WE HAVE REDUCED HOURS AT THE CIVIC CENTER NOW. EVENING PROGRAMING IS MAINLY WHAT WE HAVE. AND THEN ALSO IN FY 27. A PARKS MASTER PLAN UPDATE AS WELL. MOVING ALONG TO HUMAN RESOURCES, HUMAN RESOURCES BUDGET HAS INCREASED AS WELL. IT'S PARTIALLY DUE TO THE DEPARTMENT OF ASSESSMENTS. WE STARTED A SERIES OF DEPARTMENTAL ASSESSMENTS IN FY 26, AND WE'RE CONTINUING ON WITH THOSE IN FY 27. WE'VE ALREADY MENTIONED THE POLICE CULTURAL SURVEY IN ASSESSMENT THAT'S GOING TO TAKE PLACE. THAT'S 50,000 PROFESSIONAL SERVICES HAS INCREASED AS WELL.

THE LIBRARY AGAIN IS GOING TO HAVE THEIR ASSESSMENT AS WELL AS AN ASSESSMENT AND DEVELOPMENT SERVICES. OUR NEO GOV CONTRACT INCREASED AS WELL BY ABOUT 7000. AND THEN THERE WERE SOME INCREASES FOR LEGAL FEES IN CIVIL SERVICE. THE REGIONAL CARE TEAM WE'VE LISTED HERE JUST FOR EVERYONE'S INFORMATION, THEIR BUDGET FOR FY 2026, WHERE WE CURRENTLY STAND WITH EXPENDITURES, AND ALSO THE FY 2027 PROPOSED BUDGET. THE BUDGET DID GO DOWN DUE TO OUR PARTNERSHIP WITH PARKLAND. AND THEN ON THE LEFT SIDE, WE'VE LISTED SOME OF THE HIGHLIGHTS OF THE REGIONAL CARE TEAM AND HOW THEY'VE SHIFTED SHIFTED THE FOCUS, THE FOCUS ON MENTAL HEALTH AND COMMUNITY SUPPORT, HOUSING AND FOOD, HOUSING AND FOOD NEEDS AND OTHER NEEDS THAT ARE LISTED THERE. WE'VE EXPANDED THE HOURS OF SERVICE FROM 8 A.M. TO 5 P.M. AND UNTIL MOVING INTO OUR SWRC. WE'VE LISTED HERE THE REVENUE AND THE EXPENSES FOR

[00:30:11]

JUST TO LET YOU ALL KNOW WHERE WE ARE. SO MY QUESTION IS REGARDING THE CARE TEAM BUDGET.

AND YOU MADE A COMMENT THAT THE BUDGET WENT DOWN DUE TO THE PARTNERSHIP WITH PARKLAND. CAN YOU EXPLAIN THAT AS FAR AS WHAT THE, WHAT CAUSED IT TO GO DOWN AND EXACTLY WHAT THE PARTNERSHIP IS AND HOW IT IMPACTED THE BUDGET? IT'S, IT WAS A SHIFT TO MORE OF A HYBRID MODEL FOR, FOR PARKLAND WITH THE FOCUS MORE ON MENTAL HEALTH AND THE HOURS AS WELL AS WHAT IS WHAT SHIFTED THAT. THE PARTNERSHIP DID SAVE US QUITE A BIT. I KNOW MISS KIMBERLY HAS DONE A PRESENTATION, WITH US BEFORE. I'M NOT SURE I. DO YOU HAVE ANY MORE COMMENTS ABOUT.

YEAH. I WAS TRYING TO SEE IF SHE WAS HERE. I DON'T SEE HER HERE THIS MORNING. NO, I DON'T THINK KIMBERLY IS HERE WITH US THIS MORNING. SO, MAYOR, WAS YOUR QUESTION ABOUT THE 2027 BUDGET? WELL, THAT'S I GUESS MY QUESTION IS JUST TO PROVIDE SOME SOME CLARITY AROUND THE STATEMENT THAT WAS MADE. SO THE BUDGET WENT DOWN DUE TO THE PARTNERSHIP WITH PARKLAND. JUST UNDERSTANDING IN WHAT WAY, YOU KNOW, IN WHAT WAY. IT WAS MORE SO THE FACT THAT BECAUSE WE WE'RE USING PARKLAND, WE'RE USING OUR EMPLOYEES. SO WE'RE CONTRACTING WITH THEM. SO THINK ABOUT IT. WE DON'T HAVE THE POSITION THAT WE'RE USING THROUGH PARKLAND. WE DON'T HAVE THE STAFF. SO WE'RE NOT PAYING BENEFITS. YOU KNOW ALL OF THAT STUFF KIND OF GOES AWAY THROUGH THE CONTRACT. AND SO THAT'S THAT'S THE BIGGEST BENEFIT OF THAT. AND THEN WE IT'S ON AN AS NEEDED BASIS. SO WE DON'T HAVE TO HAVE PEOPLE STAFFED WITH US 24 HOURS A DAY. OKAY. THANK YOU.

COUNCILMEMBER. THANK YOU. I DID HAVE A QUESTION ALSO REGARDING THE STATEMENT THAT WAS MADE REGARDING HOUSING AND FOOD. AS WE SEE, FOOD INSECURITY REMAINS A CONSISTENT NEED. SO I'M CURIOUS TO KNOW HOW THE REGIONAL CARE TEAM IS ADDRESSING THAT. THE BIGGEST THING THAT THEY DO, THEY YOU KNOW, WE DON'T PROVIDE FOOD RESOURCES. THEY THEY MAY KEEP FOOD FOR IF THEY MAKE CONTACT WITH AN INDIVIDUAL THAT MAY NEED FOOD OR SOMETHING OR HAVE KIDS OR THINGS OF THAT NATURE. BUT THE BIGGEST THING IS PUTTING THEM IN CONTACT WITH RESOURCES THAT CAN HELP THEM, THAT CAN HELP PEOPLE WHO ARE IN NEED OF FOOD, YOU KNOW, WORKING WITH NONPROFITS AND THINGS OF THAT NATURE, FOOD BANKS AND ALL THAT TO MAKE SURE THAT PEOPLE HAVE ACCESS TO FOOD. OKAY. SO IT'S MORE FROM A RESOURCE STANDPOINT THAN FUNDING. YES.

THANK YOU FOR THAT CLARIFICATION, COUNCILMEMBER. NORTH, TO YOUR POINT, I DO SEE YOU, COUNCILMEMBER PARKER. THE, THE, WHAT YOU'RE SAYING WITH HOUSING AND FOOD INSECURITY REMAINS CONSISTENT NEED. I THINK IT WAS JUST GIVING US A SENSE OF WHAT THEIR BIGGEST DEMANDS ARE FOR SERVICES THERE. WITH MENTAL HEALTH AND COMMUNITY SUPPORT BEING THE HIGHEST AND THEN FOOD AND HOUSING AND FOOD INSECURITY KIND OF COMING IN SECOND UNDER

[00:35:05]

WHEN WE WERE TALKING ABOUT THE ARC, AND THE FACT THAT THERE WAS, A NEED FOR, YOU HAD SAID SOMETHING ABOUT, REMEMBER, I'D ASKED YOU, I THINK I ASKED VIA EMAIL ABOUT THE ACTUAL ARC BEING THE REASON FOR THE DEFICIT THAT WE MENTIONED BACK IN MARCH. AND I WANTED TO UNDERSTAND WHAT THE ACTUAL FIX WAS THAT GOT US TO THE POINT WHERE THERE'S NO LONGER A DEFICIT, BECAUSE I THINK PEOPLE IN THE PUBLIC NEEDED TO KNOW BECAUSE IT WAS MENTIONED BACK IN MARCH, BUT IT WAS NEVER A DECISION TO SAY, WE DID ALL OF THIS AND WE SOLD THAT UP. SO IS THERE ANY WAY WE CAN SHOW THAT UP SO THAT PEOPLE DON'T PUT THAT ON THE ARC? I MEAN, THE ARC IN ITSELF, WE ALREADY KNEW THERE WAS GOING TO BE THERE WAS GOING TO BE A SHORTFALL BECAUSE IT WASN'T GOING TO BE PROFITABLE THE FIRST YEAR OR FIRST THREE YEARS. SO CAN YOU SPEAK TO THAT, PLEASE? SURE. YEAH. SO LET'S, 20 FISCAL YEAR 2026. LET'S START THERE BECAUSE I BELIEVE YOU'RE REFERRING TO WHEN YOU SAID IN MARCH, I BELIEVE YOU'RE YOU WERE REFERRING TO THE BUDGET WORKSHOP THAT WE HAD IN MAY. THAT WAS IN MAY. IT WAS ON MAY 11TH AT THE ARC. OH, NO, NO, NO, NO, THAT WE HAD HERE IN THIS ROOM, YOU MENTIONED THAT THERE WAS A DEFICIT OR THAT THERE WERE MORE EXPENDITURES THAN THERE WERE INCOME FOR FY 26 OR THAT'S WHAT. OKAY. UNLESS I'M UNLESS I'M KNOW THERE WAS A THERE WAS A MEETING IN HERE. I DON'T REMEMBER WHAT MONTH I'VE SLEPT SINCE THEN, BUT THERE WAS A MEETING IN HERE AND IT WAS DISCUSSED ABOUT THE, THE, THE, THE SHORTFALL, REGARDING THE AQUATIC CENTER BECAUSE OF THE UNKNOWNS, WITH THAT, BUT I HONESTLY DON'T REMEMBER WHAT MONTH IT WAS. I THINK IT WAS MARCH, IF I'M NOT MISTAKEN. IT WAS MARCH. I MEAN, I'M ONLY SAYING THAT. YEAH. IRRESPECTIVE OF THE DATE, WE DID HAVE A MEETING IN HERE AND IT WAS ABOUT THAT. AND SO THE ONLY REASON I'M ASKING IS BECAUSE IT WAS PUT OUT THERE PUBLICLY THAT THERE WAS A SHORTFALL. WE NEED TO UNDERSTAND WHAT DID WE DO OR THE CITY DID IN ORDER TO MAKE CERTAIN THAT WE'RE NOT AT A SHORTFALL AT THE END OF THIS YEAR. THAT'S REALLY ALL I WANTED TO ASK THAT QUESTION FOR SURE. CAN WE PULL UP THE SLIDE? CAN WE PULL UP THE SLIDE? I'D JUST LIKE TO SAY THAT TO, TO COUNCIL AND THEN ALSO TO THE COMMUNITY AND EVERYBODY THAT MAY BE WATCHING WHENEVER WE PRESENT A DRAFT BUDGET TO COUNCIL, IT IS REALLY JUST THAT IT'S A DRAFT BUDGET. AND WE ARE IT'S A WORKING BUDGET UNTIL AND IT'S NOT FINAL UNTIL IT'S APPROVED BY COUNCIL. SO EVEN IF WE PRESENT THE BUDGET WITH MORE EXPENDITURES AND REVENUES, THAT'S NOT THE FINAL BUDGET BECAUSE IT HASN'T BEEN APPROVED, HASN'T BEEN ADOPTED YET. SO AS ALWAYS, WE HAVE TO GET THE EVALUATIONS BACK FROM DCAD TO FIGURE OUT WHAT OUR PROPERTY, OUR PROPERTY VALUES ARE COMING IN AT SO WE CAN UNDERSTAND WHAT OUR REVENUE WILL BE AND WHETHER OR NOT WE'VE HAD ANY INCREASE IN VALUE, BECAUSE THAT ALWAYS HELPS DETERMINE WHETHER OR NOT WE'RE GOING TO GET ADDITIONAL REVENUE. SO AT THE TIME WHEN WE PRESENTED THAT INFORMATION, WE DIDN'T HAVE ANY OF THAT. THOSE PROPERTY TAX VALUATIONS BACK YET. WE WERE PRESENTING THAT JUST SIMPLY BASED ON, YOU KNOW, WHERE WE WERE AT THE TIME WITH OUR CURRENT PROPERTY VALUATIONS. AND SO THAT'S ALWAYS THE PROCESS. AND THEN, YOU KNOW, AS, AS WE MOVE THROUGH THAT PROCESS, WE GET INPUT FROM COUNCIL, YOU KNOW, AS TO WHAT THINGS THAT WE WANT, WE WANT TO ADD OR TAKE OUT. SO THE BUDGET IS ALWAYS IN FLUX UNTIL IT'S ACTUALLY APPROVED BY COUNCIL. SO I JUST WANT TO MAKE THAT MAKE EVERYBODY AWARE THAT JUST AS A POINT OF INFORMATION, AND I DON'T MEAN TO CUT YOU OFF.

INTERIM CITY MANAGER, BUT THANK YOU FOR THAT UPDATE. BUT THE REASON THAT I BROUGHT IT UP IS BECAUSE WHEN WE'RE TALKING, WE'RE MAKING WE'RE MAKING THE ASSUMPTION OR WE'RE SAYING, JUST AS YOU SAID, WE'RE NOT FINALIZED YET. AT THAT PARTICULAR POINT IN TIME, THERE

[00:40:04]

OKAY, THE CURRENT BUDGET, I KNOW FOR SURE THAT WE DISCUSSED THAT ON MAY 11TH AT THE ARC.

THAT IS WHEN WE HAD THE, THE, THE BUDGET WORKSHOP, WE SHOWED A SLIDE THAT LOOKED THAT HAD A $600,000 FIGURE FOR REVENUE UNDER EXPENDITURES. IN ADDITION TO THAT, THERE WAS A PLAN IN PLACE OR THAT WAS BEING REVIEWED TO DO A, AN UPDATED PAY SCALE FOR THE PD, THE UPDATED PAY SCALE FOR THE PD WAS $1 MILLION. SO IF YOU ADD THE MILLION DOLLARS TO THE 600,000 TO THE 600,000, THAT WAS THE 1.6 MILLION THAT YOU SAW AT THAT TIME FOR FY 27.

THAT'S FY 27 IS STILL A WORKING BUDGET. WE'VE PROPOSED A BALANCED BUDGET, BUT IN IN MARCH, IN IN MAY, WE'RE STILL THAT THAT PRESENTATION WAS TO LET COUNCIL TAKE A LOOK AT THE SUPPLEMENTAL REQUEST THAT DEPARTMENTS WERE MAKING, AS WELL AS ALL OF THAT. THAT WAS EVERYTHING THAT'S EVEN INCLUDE THE WHOLE KITCHEN SINK, RIGHT. WITH ALL OF THE DEPARTMENTS, RECOMMENDATIONS, ALL OF THEIR ADDITIONS, ALL OF THEIR NEW PERSONNEL. WE KNEW AT THE TIME, WE COULDN'T ADD ALL OF THAT BECAUSE THERE WAS, THERE WASN'T ENOUGH ROOM. WE WERE ALREADY OUT 600,000. IN ADDITION TO THAT, AGAIN, WE WERE LOOKING AT A $1 MILLION POSSIBLE NEW PAY PLAN FOR THE PD. WE STATED AT THAT MEETING EVERYTHING COULDN'T FIT. WE HAD TO GO BACK, REEVALUATE AND SEE WHAT WE COULD MOVE AROUND, WHAT WE COULD POSSIBLY DELAY, HOW WE COULD SAVE ON PROFESSIONAL SERVICES AND THINGS OF THAT NATURE. AND SO THAT'S WHY THAT'S THAT WAS THE $1.6 MILLION FIGURE. WE STATED AT THAT MEETING THAT WE WERE NOT GOING TO PROPOSE A BUDGET THAT WAS UPSIDE DOWN. THANK YOU, MISS SUTTON. AND JUST TO, TO CLARIFY THE DATES AND THE MEETINGS THAT MY COLLEAGUE IS REFERENCING, I JUST WENT BACK TO LOOK AT MY CALENDAR FROM THIS PAST SPRING. WE HAD A VIRTUAL TOWN HALL ON MARCH 25TH, BUT IT WAS ALL REGARDING FISCAL YEAR 27. THEN WE HAD ANOTHER ONE THAT WAS IN PERSON BECAUSE I ATTENDED THAT ONE. IT WAS ON APRIL 8TH, AND IT WAS AGAIN ABOUT FISCAL YEAR 27. SO ALL OF THEM WERE THESE WERE NOT MEETINGS ABOUT THE PREVIOUS FISCAL YEAR. THEY WERE, LOOKING AHEAD TO FISCAL YEAR 27. THEN THE ONE YOU'RE SPEAKING OF IN MAY WAS ON MAY 11TH, AND IT WAS THE FISCAL YEAR 27. IT WAS A MINI BUDGET WORKSHOP THAT WE HAD AT THE AAC. YES. SO THOSE ARE THE MEETINGS THAT WE HAD. BUT THAT THAT JUST TO PROVIDE CLARITY ON THOSE DATES, I BELIEVE THE CITY MANAGER'S INTENT AT THE TIME, COUNCILWOMAN PARKER, WAS TO BE TRANSPARENT AND SHOW THE COUNCIL WHAT REQUESTS WERE ON THE TABLE. WHAT WHAT WAS HE EVALUATING? WHAT WERE WE LOOKING AT DOING? AND SO WE DIDN'T WANT TO OMIT ANY DEPARTMENT'S REQUESTS. WE WANTED EVERYONE TO SEE WHAT DEPARTMENTS WERE REQUESTING AND WHY. BUT AT THE TIME, WE WE KNEW IT ALL. YOU KNOW, EVERYBODY'S WISH LIST COULDN'T FIT, OBVIOUSLY. SO NOW MOVING FORWARD, I THINK. OKAY. I'M SORRY. SO AND AGAIN, I'M, I'M GOING TO, YOU KNOW, I'M GOING TO I JUST DON'T REMEMBER THAT CONVERSATION BEING ABOUT 27. I THOUGHT IT WAS ABOUT 26 BASED ON THE ACTUAL MEETING. BUT I'LL LET YOU GUYS, YOU KNOW, GO FORWARD WITH THAT. BUT AS FAR AS THE PROFESSIONAL SERVICES CONCERN FOR HR, THE HR DEPARTMENT IS GOING TO MAKE CERTAIN THAT THOSE ITEMS GET DONE FOR FISCAL YEAR 26. I MEAN, 27. AND THAT 68,000 ENCOMPASSES ONLY THREE DEPARTMENTS. LET'S MAKE SURE. YEAH. SO THE 68,000, I HAVE THE EXTRA THAT THEY HAVE IN PROFESSIONAL SERVICE BEING DEDICATED TO THOSE THREE DEPARTMENTS, THE POLICE, THE LIBRARY AND DEVELOPMENT SERVICES. YOU SAID THE EXTRA.

SO THE BASELINE, THEIR, THEIR NORMAL BUDGET HAS BEEN AROUND 55,000 FOR THEIR PROFESSIONAL SERVICES. OKAY. SO WE'RE INTO THE 110 FOR THIS FOR FISCAL YEAR 27. YEAH, I BELIEVE WE'RE ABOUT 9090 1000 FOR FY 27 FOR PROFESSIONAL SERVICES AND HR. NO, NO, NO, I'M SAYING IN

[00:45:05]

THIS BUDGET RIGHT HERE SAYS 68,000. I JUST THOUGHT THAT WOULD BE PAST 91,000. BUT I MAY JUST BE LOOKING AT SOMETHING WRONG. SO FOR THE PURPOSE OF MY QUESTION, WHEN WE'RE TALKING ABOUT A DEPARTMENTAL ASSESSMENT, IS THAT SOMETHING THAT THE ACTUAL HR DEPARTMENT WILL, WILL DO, OR IS IT WHAT THE ACTUAL DEPARTMENT THEMSELVES WOULD DO? THE HR DEPARTMENT IS JUST ABSORBING THE COST BECAUSE IT IS AN ASSESSMENT. IT IS CATEGORIZED AS A HR EXPENSE.

AND SO THE HR DEPARTMENT WILL FINANCE IT OUT OF THEIR BUDGET. AND THEY WILL THEY WILL HIRE A CONSULTANT TO DO THE WORK. OKAY. OKAY. AND THAT CONSULTANT WON'T GO THROUGH THE DIFFERENT DEPARTMENTS BECAUSE EVERY DEPARTMENT NEEDS A DIFFERENT CONSULTANT. CORRECT. YOU KNOW, THEY'LL, THEY'LL APPLY THE PURCHASING POLICY, YOU KNOW, AS FAR AS HOW THEY'LL SELECT WHO THE CONSULTANT WILL BE. OKAY. ALL RIGHT. AND THEN AS FAR AS THE POLICE IS CONCERNED, THEY HAVE A CULTURAL ASSESSMENT WHICH IS DIFFERENT THAN THIS, RIGHT. THIS IS A YES. SO THERE'S TWO ASSESSMENTS GOING ON IN THE POLICE DEPARTMENT. IT'S MY UNDERSTANDING THAT THIS CULTURAL ASSESSMENT THAT'S BUDGETED FOR FY 27 IS PHASE TWO, PHASE ONE THAT'S ALREADY BEEN STARTED. BUT YOU MENTIONED THAT THE CULTURAL ASSESSMENT IS STILL COMING OUT OF HR S BUDGET, BUT IT IS FOR THE POLICE DEPARTMENT. IT IS. YES. SO YOU'LL SEE THAT. AND I DON'T KNOW IF YOU WERE HERE OR NOT WHEN SHE MADE THAT DISTINCTION, BUT THE CULTURAL ASSESSMENT TO PAY FOR IT COMES OUT OF HR S BUDGET, BUT IT'S FOR THEM. OKAY. ALL RIGHT. I YIELD BACK FOR NOW.

THANK YOU. COUNCILMAN WESLEY, AND THEN WE'RE GOING TO HEAR FROM OUR CITY MANAGER ON THE ROOFING. LOOKS LIKE WE MIGHT HAVE GOT A LITTLE BIT OF CALM FOR RIGHT NOW, AND I APOLOGIZE.

I SHOULD HAVE SAID THIS EARLIER, BUT, FOR THE RESIDENTS WHO ARE WATCHING ONLINE AND WHO ARE HERE AND THE, YOU KNOW, THE MYTH OF, YOU KNOW, THAT WE'RE BROKE. THE POINT THAT YOU WENT ON ABOUT OUR RESERVES AND WE'RE OVER $30 MILLION IN RESERVES. WHAT IS THE POLICY FOR MOST CITIES TO HAVE ON RESERVES? IT, IT'S TWO MONTHS, RIGHT? TWO MONTHS, 60 DAYS, 60 DAYS. AND WE HAVE ACTUALLY, HOW, HOW MANY MONTHS? NINE, NINE. SO NINE MONTHS. YES. THANK YOU. THANK YOU. I'M GOING TO I'M GOING TO CIRCLE BACK. OH, NO. I SAID YOU HAD THE FLOOR AFTER THAT BECAUSE I KNOW, BECAUSE I HAVE A QUESTION. IT'S GOING TO I'M GONNA SEND US DOWN A RABBIT HOLE. SO YOU GO AHEAD AND SAY WHAT YOU HAVE TO SAY. SO YEAH, AS, YOU GUYS WERE ABLE TO HEAR THE NOISE THAT WAS GOING ON, I THINK WE'VE GOTTEN IT STOPPED RIGHT NOW, BUT WE'RE HAVING THE ROOF REPLACED. AND SO, YOU KNOW, THE ROOF WAS AT A POINT WHERE THEY HAVE THIS SECTION OF THE ROOF OPEN AND THEY WERE TRYING NOT TO STOP BECAUSE IF THEY STOPPED, THEN, YOU KNOW, YOU KNOW, YOU DON'T WANT THE ROOF OPEN, OPEN. SO BUT WE'VE GOTTEN, I THINK WE'VE GOTTEN TO A POINT WHERE THEY STOP AND THEY'LL DO SOMETHING ELSE UNTIL MAYBE AROUND 2:00. SO HOPEFULLY WE'LL THE NOISE HAS SUBSIDED. THANK YOU. THANK YOU, MR. CAMERON. I DO WANT TO GO BACK TO COUNCIL MEMBER PARKER'S QUESTION ABOUT THE DEFICIT AND THE STATEMENT, BECAUSE WE UNDERSTAND SOMETIMES WHEN YOU PUT THOSE STATEMENTS OUT, ALBEIT IT'S A FACTUAL STATEMENT, PEOPLE'S INTERPRETATION OF IT OR HOW THEY PERCEIVE THAT COULD BE DIFFERENT AROUND THE BOARD. AND SO WE DO WANT TO CLOSE THAT UP IN TERMS OF HOW WAS IT, AND I'M GONNA USE THE WORD RESOLVE, FOR LACK OF BETTER WORDS, BUT HOW WAS THAT GAP CLOSED? LET ME LET ME STATE IT THAT WAY. SO THAT'S ALSO FOR COUNCIL JUST TO UNDERSTAND THE MECHANISMS THAT FINANCE DID TO MAKE SURE THAT SOMETHING THAT COULD POSSIBLY BE A CHALLENGE FOR US IN THE NEXT BUDGET WAS ACTUALLY ADDRESSED AND RESOLVED. AND I THINK IT'S GOOD FOR THE PUBLIC TO KNOW THAT AS WELL, BECAUSE WHEN THEY HEAR THINGS LIKE THAT, IT MAY ALARM THEM AS WELL. SO WE DO WANT TO MAKE SURE THAT REGARDLESS IF IT WAS 26, 27, 2030, RIGHT. WE WANT TO UNDERSTAND, YOU KNOW, HOW DID THAT GAP GET CLOSED? BECAUSE I THINK THAT HONESTLY JUST SPEAKS TO THE SAVVINESS, AND THE THOUGHTFULNESS OF OUR FINANCE DEPARTMENT. SO WE WANT TO JUST HIGHLIGHT THAT. SURE. SO, THE, THE $1.6 MILLION GAP THAT WE TALKED ABOUT ON MAY 11TH. WE OF COURSE DID NOT IMPLEMENT OR IS NOT PROPOSED AT THIS TIME. THE, THE POLICE PAY PLAN INCREASE. THAT WAS $1 MILLION. SO THAT

[00:50:06]

EVERY YEAR WE HAVE A SET OF, OF CAPITAL NEEDS, CAPITAL OUTLAY, THAT CAPITAL OUTLAY, COMES FROM THE GENERAL BUDGET. I'M SPEAKING OF VEHICLES AND HEAVY EQUIPMENT, THINGS LIKE THAT.

PURCHASES THAT ARE NORMALLY MADE OUT OF THE GENERAL FUND. WE'RE GOING TO PROPOSE THAT THOSE ARE GOING TO BE MADE OUT OF THE CAPITAL FUND, BECAUSE AT THE END OF FY 25 AUDIT, WE WERE OVER AGAIN ON OUR FUND BALANCE BY MORE THAN 5 MILLION IN THE GENERAL FUND. AND SO COUNCIL WILL ACTUALLY BE SEEING AN ITEM ON AN UPCOMING AGENDA, WHICH IS THE SAME ITEM THAT WE DO EVERY SUMMER FOR THE FUND BALANCE POLICY, WHERE WE'RE GOING TO SUGGEST THAT CERTAIN HEAVY EQUIPMENT AND VEHICLES THAT ARE ON VEHICLE REPLACEMENT SCHEDULE FOR FY 27 BE PURCHASED OUT OF THAT CAPITAL FUND. SO THAT IS ALSO A WAY THAT WE'VE BUDGETED, BUDGETED, AND MANAGED TO CLOSE THAT GAP, AS WELL AS SOME NEW POSITION REQUESTS THAT, UNFORTUNATELY DIDN'T GET APPROVED WITH THIS BUDGET. BUT, ALONG THOSE SAME LINES, THE POSITIONS THAT WE DID ADD, WE WERE CAREFUL, CAREFUL TO SEE IF THOSE POSITIONS WOULD ALLOW US TO REDUCE PROFESSIONAL SERVICES COSTS. AND THEY DID AS WELL AS LONG, ALONG WITH SAVINGS FROM RECLASSIFYING SOME POSITIONS.

SO THAT THAT'S BASICALLY HOW WE GOT THERE. AND I JUST MENTIONED AS WELL IN THE FIRE DEPARTMENT WITH ADDING THOSE FIVE FIRE FIREFIGHTERS, WE'RE GOING TO SAVE ABOUT $250,000 IN OVERTIME.

THANK YOU, MISS SUTTON. WE APPRECIATE IT. THANK YOU FOR THE CLARIFICATION. OKAY. I THINK WE CAN MOVE TO THE NEXT THE NEXT SECTION ON THE AGENDA. OKAY. AT THIS TIME, WE'RE GOING TO LOOK AT ASSESSED VALUES AND RECOMMENDED TAX RATE. AND AGAIN THIS IS GOING TO BE OUR RECOMMENDED TAX RATE AS OF TODAY. RIGHT. BECAUSE WE KNOW HOW HOW THE NUMBERS MOVE. THE GREAT NEWS IS THAT WE DID RECEIVE OUR FINAL ASSESSED VALUATIONS. SO OUR TAXABLE VALUE AT THE CITY OF DE SOTO IS 8.3 BILLION COMPARED TO 7.9 BILLION LAST YEAR. SO WE DID ARRIVE AT ABOUT A 4% INCREASE IN OUR VALUATION. NOW, PRIOR YEARS, WE WERE EXPECTING ANYWHERE BETWEEN FIVE 6% INCREASE A COUPLE OF YEARS. IT JUMPED UP TO 12%, 10% THIS YEAR WAS A LITTLE BIT LOWER THAN WHAT, THAN WHAT IT'S BEEN AT 4%. BUT 8.31 BILLION IS STILL GREAT.

AND IT'S SIGNIFICANT. AND IT FITS INTO THE RANGE THAT WE WOULD LIKE TO SEE IN ORDER TO KEEP THE PROPERTY TAX RATE AT 0.68. NOW, IF YOU LOOK HERE, I'VE LISTED THE PROPERTY TAX RATE. FROM FY 26 TO FY 27. THIS IS OUR CURRENT RATE 0.502. OUR CURRENT RATE IS 0.18. THAT'S HOW WE GET TO THE TOTAL NUMBER OF 0.68 AT 0.502. THE GENERAL FUND IS BRINGING IN 40,000,040.4 MILLION IN PROPERTY TAX REVENUE MOVING INTO NEXT YEAR. BASED ON THIS, 8.3 BILLION IN TAXABLE VALUE, I ANTICIPATE THAT WE CAN HAVE A PROPERTY TAX RATE OF 0.52 THIS YEAR. SO WE WILL BE APPLYING 0.52 OR WHATEVER IT ENDS UP BEING, WHETHER IT'S 0.5, 2.53.

WE WILL APPLY THAT TO THE NEW DEBT SERVICE RATE THAT WE'RE GOING TO PROPOSE. NOW, WE TALKED ABOUT A COUPLE OF MEETINGS AGO. WE HAD HILLTOP SECURITIES TO COME IN AND SPEAK WITH THE COUNCIL ABOUT AN HONEST TAX RATE MANAGEMENT TOOL. AS YOU ARE AWARE, WE DID NOT DO A BOND SALE IN FISCAL YEAR 2026 BECAUSE WE WANTED THE FISCAL YEAR 2025 BOND SALE TO COVER TWO YEARS. OKAY. BUT WHAT THAT DID FOR US, IT REDUCED OUR DEBT PAYMENTS THAT ARE COMING UP IN FY 2027, OR REDUCED DEBT PAYMENT MEANS A REDUCED DEBT SERVICE RATE. IF WE DON'T DO ANYTHING ABOUT IT. SO IF WE DON'T DO ANYTHING ABOUT OUR DEBT SERVICE RATE RIGHT NOW,

[00:55:01]

SO THE DEBT MANAGEMENT TOOL THAT WE SPOKE TO YOU ABOUT A COUPLE OF MONTHS AGO WILL ADD A PERCENTAGE TO OUR DEBT SERVICE RATE. WE NEED TO MAINTAIN OUR DEBT SERVICE RATE. AND THE REASON THAT WE NEED TO MAINTAIN IT AND KEEP IT UP AND NOT LET IT DROP DOWN IS BECAUSE WHEN WE GO TO DO THE BOND SALE IN 2027, IF WE DON'T MAINTAIN IT NOW, THERE WILL BE A STEEP PROPERTY TAX RATE INCREASE NEXT FISCAL YEAR. SO THE IDEA IS, IF THE CITY HAS A CIP IN PLACE, YOU WANT TO KEEP YOUR DEBT SERVICE RATE STEADY SO THAT YOU CAN CONTINUE ON WITH YOUR CIP. THE DEBT RATE MANAGEMENT TOOL MAY ADD APPROXIMATELY $0.03 TO OUR DEBT SERVICE RATE, WHICH IS GOING TO HELP US WITH THAT, CAUSE WE DON'T WANT IT TO DROP DOWN BECAUSE IF OUR, IF OUR M AND O COMES BACK AT 0.52. IF OUR M AND O COMES BACK AT 0.52, BUT OUR DEBT SERVICE RATE IS 0.12 OR 0.13, OUR TAX RATE WON'T BE HIGH ENOUGH TO SUPPORT OUR OPERATION. SO WE DO HAVE POSSIBLY AN ITEM COMING IN AUGUST THAT'S GOING TO GIVE US OPTIONS. DO YOU REMEMBER WE EXPLORE OPTIONS FOR MANAGING THEIR TAX RATE. MY I RECOMMEND THE OPTION AS WELL AS OUR FINANCIAL ADVISORS OPTION WAS TO PREPAY SOME DEBT THAT WE ALREADY HAVE. THE REASON I SUGGEST THAT MECHANISM IS BECAUSE IT SAVES US MONEY AND INTEREST OVER TIME. WE WOULD SIMPLY BE BRINGING FORTH AN ORDINANCE FOR THE COUNCIL TO CONSIDER FOR US TO PREPAY SOME CALLABLE BONDS. WE DON'T KNOW THE AMOUNT YET. MAYBE UP TO 3.5 MILLION. PREPAY SOME CALLABLE BONDS AND SERVE AND SAVE US A CERTAIN AMOUNT OF MONEY IN INTEREST RATE OVER TIME. THAT'S THE SIMPLEST WAY TO DO IT. AT THAT POINT, YOU'VE ADDED THE COUPLE OF PENNIES THAT YOU NEED TO YOUR DEBT SERVICE RATE. YOU'VE PAID OFF ONE OF YOUR BONDS EARLY, AND AT THE SAME TIME, YOU'RE KEEPING ROOM FOR M AND O. FOR US TO BE ABLE TO EITHER MAINTAIN A 0.68 TAX RATE OR PROPOSE A SLIGHT TAX RATE INCREASE. YOU KNOW, FORTUNATELY, THAT'S NOT OFF THE TABLE EITHER.

IT JUST DEPENDS ON WHAT THE COUNCIL'S DESIRE IS. AND WE'LL TALK MORE ABOUT THAT AT THE END.

BECAUSE AT THE END OF THE PRESENTATION I'M GOING TO WRAP IT ALL UP FOR YOU, SHOW YOU WHERE WE STAND AND THEN TALK ABOUT OPTIONS MOVING FORWARD. GO BACK HERE. SO, ANY QUESTIONS SO FAR ABOUT OUR ASSESSED VALUATION OR DEBT SERVICE RATE SO FAR. OKAY. SURE. WELL, JUST TO BE CLEAR, YOU KNOW, IN MY HOME PERSONALLY, YOU KNOW, YOU ALWAYS WANT TO SAY, YOU KNOW, KEEP YOUR CASH, BUT YOU, YOU, YOU DID SAY THAT YOUR RECOMMENDATION, YOUR DEPARTMENT AND THE CONSULTANT FIRMS THAT WE HIRE HAVE MADE A RECOMMENDATION OF WHAT IS A SMART WAY TO HANDLE OUR SITUATION HERE AT THE CITY, RIGHT? YES. OKAY. YES. AND KEEP IN MIND THE OPTIONS ALSO THAT WERE PRESENTED A COUPLE OF MONTHS AGO FROM HILLTOP SECURITIES. THEY'RE BEING PRESENTED AT, YOU KNOW, COMPARABLE CITIES AS WELL. TAX NOTES. SEVERAL CITIES ARE DOING TAX NOTES THIS YEAR AS WELL. WE DID THAT A COUPLE OF YEARS AGO.

SO, DEBT, A DEBT RATE MANAGEMENT TOOL IS, IS GOING TO BE A NORM. YOU KNOW, NOW WITH SENATE BILL TWO AND SOME OF THE OTHER LIMITATIONS THAT WE HAVE. SO ANY TOOL THAT'S AVAILABLE THAT WE CAN USE TO MAKE IT FIT AND MAKE IT FIT OUR CITIZENS NEEDS SO THAT WE DON'T HAVE TO CUT SERVICES, WE WANT TO PRESENT THOSE TO YOU ALL. CERTAINLY. AND SO THE WHAT I HEAR YOU SAYING IS THAT OR I THINK I HEAR YOU SAYING, IS THAT YOU'RE LOOKING AT PAYING DOWN SOME DEBT AS THE, THE TOOL OUT OF THE FOUR OPTIONS THAT WE RECEIVE VERSUS SOMETHING LIKE WE DID IN THE PAST WITH THE TAX NOTE, THOSE THINGS. MY QUESTION IS ABOUT EVEN THOUGH, AND I KNOW WE LOVE TO, TO TOWN, I THINK IT IS REMARKABLE, YOU KNOW, THAT THE CITY OF DE SOTO HAS NOT INCREASED OUR TAX RATE, IN OVER 14, 13, 14 YEARS. WE KNOW THAT, THERE MAY BE A TIME WHEN, WHEN THAT MAY NOT BE THE CASE. HOWEVER, I THINK WHAT I HEAR YOU SAYING YOU'RE TRYING

[01:00:02]

ABSOLUTELY. YES, ABSOLUTELY. BECAUSE IF WE IF WE DO NOTHING AND LET IT GO DOWN TO 0.1, 2.13, WE ARE GOING TO HAVE TO PROPOSE A BOND SALE. YOU KNOW, FOR FY 27, THAT'S GOING TO BE A BOND SALE IN THE AMOUNT OF ANYWHERE BETWEEN 20 TO 25 MILLION. AND THAT'S GOING TO WE DON'T WANT A THREE CENT INCREASE AT ONE TIME, YOU KNOW, SO CERTAINLY COUNCIL MEMBER PARKER, DID YOU HAVE A QUESTION? I DID, AND, YOU KNOW, IT'S PROBABLY GOING TO BE A NEED FOR MORE EDUCATION AROUND THAT BECAUSE THAT YOU SAID A LOT. LET ME JUST SAY THAT, I KNOW THAT 27 IS A YEAR THAT THE LEGISLATURE GOES BACK INTO PLACE AND THEY WILL BE TALKING ABOUT PROPERTY TAXES AND REMOVAL, PROPERTY TAXES AND THINGS LIKE THAT. SO THERE'S GOING TO BE A LOT OF THINGS THAT MAY HIT THE CITIES. AND I'M HOPING THAT WE'RE DOING SOME EDUCATION AROUND THAT PIECE SO THAT WE CAN BE READY. SO MY QUESTION AROUND THIS IS I KNOW WE'VE LOOKED HISTORICALLY BACK. HAVE WE LOOKED HISTORICALLY FORWARD IN THAT WHEN WE'RE HAVING THESE DISCUSSIONS, NOT JUST ONE YEAR, BUT MORE THAN ONE YEAR TO SEE BASED ON IF THIS HAPPENED, THIS COULD HAPPEN KIND OF GIVEN NOT JUST THE COUNCIL INFORMATION, BUT ALSO MAKING CERTAIN THAT THE PUBLIC UNDERSTANDS THE REASON CERTAIN THINGS HAS TO HAPPEN. BECAUSE I KNOW THAT THIS PROPERTY TAX THING IS DEFINITELY GOING TO BE HUGE ON THE GOVERNOR'S DESK, AND WE HOPE THAT THAT DOESN'T HAPPEN. BUT IF SOMETHING LIKE THAT HAPPENED OR, YOU KNOW, THOSE ARE THE KINDS OF QUESTIONS THAT I WOULD HOPE WE'RE EDUCATING OUR PUBLIC ON TO SAY WE'RE READY FOR WHATEVER COMES OUR WAY. WE'VE THOUGHT IT THROUGH. SO DO WE HAVE ANYTHING IN PLACE THAT IS GIVEN THAT KIND OF INFORMATION? WE, I DON'T KNOW IF WE HAVE ANYTHING INTERACTIVE THAT IS GIVEN THAT TYPE OF INFORMATION, WHAT WHAT WE HAVE CREATED IS A PLACE FOR THE PUBLIC TO INTERACT WITH US. AND WE'VE BEEN TAKING THAT ONE QUESTION AT A TIME. IF YOU GO ON THE WEBSITE, YOU CAN INTERACT AND SUBMIT QUESTIONS FOR THE FY 27 BUDGET THROUGH THE CHAT BOT THAT'S ONLINE. WE CHECK EVERY DAY. TRY TO PUT ANSWERS OUT THERE. WE, WE DEFINITELY TAKE IT A DAY AT A TIME. BUT AS FAR AS FUTURE PLANNING, WE'VE TALKED ABOUT A FEW DIFFERENT THINGS THAT WE CAN DO. WE TALKED ABOUT IMPLEMENTING A, C, C, D, AND I DO THINK THAT THAT'S SOMETHING WE MAY BRING BACK TO PROPOSE TO BE ON AN UPCOMING BALLOT THAT'S GOING TO HELP OUR GENERAL FUND AS WELL, IN LIGHT OF SOME OF THESE OTHER LIMITATIONS THAT THE LEGISLATURE MAY PUT ON US. WE DO THAT. THEN WE CAN FINANCE CERTAIN EXPENDITURES OUT OF THE C, C, P, D INSTEAD OF OUT OF THE GENERAL FUND. SO JUST STAYING UP TO DATE ON ALL OF THE, THE DIFFERENT PROGRAMS THAT ARE AVAILABLE TO US, TALKING TO OUR SISTER CITIES AND SEEING WHAT THEY'RE DOING. DEFINITELY IT'S GOING TO PUT US IN A BETTER POSITION. OKAY.

THANK YOU. CAN YOU GIVE US THE, THE, DEFINITION FOR CCPD FOR THOSE THAT MAY NOT KNOW WHAT THAT IS. IT'S A CRIME AND CONTROL PREVENTION DISTRICT. AND, DEFINITELY WE HAD CEDAR HILL HAS ONE. THEY CAME AND SPOKE WITH US A COUPLE OF WORKSHOPS AGO. MAY HAVE BEEN LAST YEAR, 2023. YEAH. TWO YEARS AGO. THAT THEY HAVE ONE AND WE'VE BEEN DOING QUITE A BIT OF RESEARCH ON THE CPD AND, I, I'M FOR IT ACTUALLY, I THINK IT'S A GREAT TOOL. I THINK IT'S SOMETHING THAT, IF WE GET AHEAD OF THAT NOW, IF THERE DO BECOME FURTHER LIMITATIONS ON PROPERTY TAX, WILL ALREADY HAVE SOMETHING IN PLACE TO GIVE US SOME LEVERAGE. AND THERE'S ONE FOR THE FIRE DEPARTMENT AS WELL. SURE, SURE. I THINK WE MOST RECENTLY DISCUSSED THE POSSIBILITY OF THAT ONE ALSO. SURE DID. AND PLENTY OF CITIES DO BOTH. IF THEY COMMIT A HALF A PENNY TO EACH ONE, THEN THEY DO A PORTION OF THAT, TO ONE DISTRICT AND THEN A PORTION TO THE OTHER DISTRICT. GREAT. AND WE TALKED ABOUT THE POSSIBILITY THAT COULD BE I COULD HAVE IMAGINED THIS, BUT THE POSSIBILITY OF INCORPORATING SOME OF THE CARE TEAM INTO THOSE FEES AS WELL, RIGHT INTO THE INTO THOSE DISTRICTS, RATHER, IS ONE OF THE OPTIONS FOR THE CARE TEAM TO MAKE SURE THAT THAT STAYS SOLVENT. YES, YES, WE DEFINITELY I WOULD LOVE TO CONTINUE THE CONVERSATIONS AROUND THE BENEFITS AND DRAWBACKS AS WELL. WE NEED WE NEED TO HEAR IT ALL, OF BOTH OF THOSE. BUT I THINK THAT CONCLUDES EVERYBODY'S QUESTIONS

[01:05:03]

THE DEBT SERVICE GOES INTO FUND 1305 SO THAT WE CAN PAY THE DEBT THAT WE CURRENTLY HAVE, THE TAXABLE VALUE THAT WE ADOPT EACH YEAR APPLIES TO THAT RATE. AND THAT TELLS US HOW MUCH REVENUE WE'LL HAVE COMING INTO THE DEBT SERVICE FUND. SO IF WE DON'T ALLOW OUR DEBT SERVICE RATE TO DROP DOWN TO 0.13, AND WE DO SOMETHING TO KEEP IT AT 0.16 OR SO, 1617, THAT WILL BRING US IN $14.9 MILLION INTO THE DEBT SERVICE FUND. FOR FY 27. AND HERE WAS MY JUST MY REMINDER ON A FUTURE AGENDA. AGENDA. THE CITY COUNCIL MAY CONSIDER AN ORDINANCE TO MANAGE THE INS TAX RATE TO PAY OFF UP TO 3.5 MILLION, AND WILL ONLY PAY UP TO THE AMOUNT THAT WE NEED TO GET THAT DEBT RATE WHERE WE WANT IT TO BE. IT MAY END UP BEING 3.5 MILLION. IT MAY END UP BEING 3 MILLION OR 2.5 MILLION. THE GREAT THING IS IT'S A CALLABLE BOND AND IT DOES NOT HAVE A PREPAYMENT PENALTY. SO WE CAN PAY IT OFF AND END UP SAVING MONEY IN INTEREST. AGAIN, THIS IS WHAT THE RATES YOU'LL SEE IN THE PROPOSED BUDGET AS IT STANDS NOW. SO WE THINK THESE ARE SAFE NUMBERS WE CAN PUT OUT THERE FOR RIGHT NOW WHILE WE'RE STILL WORKING OUT THINGS WITH THE DALLAS COUNTY TAX OFFICE, M AND 0.52. A DEBT SERVICE RATE OF 0.16 AND AN OVERALL RATE OF 0.684934 WITH ROOM TO GROW. SHALL WE DECIDE TO DO THAT? THIS IS JUST A QUICK LOOK AT OUR, OUR NET PROPERTY TAX VALUES IN DESOTO. SO AGAIN FOR FY 2026 WE WERE AT 7.9 BILLION. WE HAD A CHANGE OF 99 MILLION IN NEW CONSTRUCTION. AND THE REMAINDER OF THAT CHANGE WAS EXISTING VALUE INCREASES IN THE CITY OF DESOTO. AND THAT IS WHERE WE ENDED WITH OUR 8,331,106,485. THAT'S A MOUTHFUL, BUT 8.3 BILLION, IS WHAT OUR FINAL ASSESSED VALUES ARE. ANY QUESTIONS ABOUT PROPERTY TAX RATE? I DON'T HAVE A QUESTION ABOUT THE PROPERTY TAX RATE. I'M GLAD THAT WE ARE LOOKING AT DIFFERENT TOOLS TO PUT IN PLACE DEBT MANAGEMENT TOOL. THAT WOULD BE HELPFUL AND BENEFICIAL FOR US. BUT I DO JUST WANT TO ASK THIS QUESTION TO THE INTERIM CITY MANAGER, AND THAT IS AROUND THE FIRE AND POLICE DISTRICTS. WILL WE BE HAVING FURTHER DISCUSSIONS OF THAT COMING UP WITH THE COUNCIL? YES, WE'LL BRING THAT INFORMATION BACK TO COUNCIL, AND WE HAVE TO MAKE SURE WE UNDERSTAND THE TIMING OF IT AS WELL, YOU KNOW, BECAUSE IT WILL HAVE TO BE PLACED ON THE BALLOT FOR VOTER VOTER APPROVAL AND ALL THAT. SO WE GOT TO MAKE SURE WE UNDERSTAND WHAT THAT TIMING LOOKS LIKE AND ALL THAT. BUT WE'LL WE'LL BRING SOME INFORMATION BACK TO COUNCIL.

OKAY. THANK YOU SIR. THANK YOU FOR FOR THAT LAST PIECE. IF YOU CAN GO BACK JUST A LITTLE BIT TO THAT PAGE WHERE IT HAS THE NEW CONSTRUCTION. IN THE FOR THE PURPOSES OF TAXES, WHEN

[01:10:07]

AND IT ALSO DEPENDS ON WHAT OUR VOTER APPROVAL RATE IS AS WELL. SO BUT IF WE APPLY THE 0.52 THIS IS WHAT WE'RE LOOKING AT 46 MILLION IN PROPERTY TAX. SALES TAX WE RAISE THAT SOME IF YOU CAN REMEMBER, FROM 2024 TO 2025, WE DID NOT INCREASE IT. AND, I'M SORRY, FROM 2026 WE DID NOT INCREASE IT. IT WAS STILL AT 11.7 MILLION. FOR 2027. WE ARE GOING TO PROPOSE A SLIGHT INCREASE BECAUSE PROPERTY SALES TAX IS NOT REALLY DOING YOU KNOW, WE'RE NOT GETTING THE TRACTION THERE LIKE WE USED TO. WE USED TO LOOK AT ANYWHERE BETWEEN FIVE 6% INCREASE. WE'RE NOT SEEING THAT ANYMORE. SO WE CERTAINLY DON'T WANT TO OVERSTATE THAT THEY'RE THERE. SO WE ARE LOOKING AT ONLY A 2% CHANGE FROM PRIOR YEAR. AND OUR OTHER REVENUE SOURCES ARE LISTED HERE. THOSE ARE BASICALLY BUDGETED LOOKING AT PLANS FROM THE DEPARTMENT, PROGRAMING FROM THE DEPARTMENT AS WELL AS HISTORICAL PERFORMANCE. SO 70 74.3 MILLION IS WHAT WE'RE LOOKING AT SO FAR FOR GENERAL FUND REVENUE. CAN WE GO BACK TO THAT REAL FAST? I JUST HAVE A QUESTION. THE PART WHERE IT SAYS 1.7 MILLION CHANGE FROM PARKS AND RECS. IS THERE NO WIGGLE ROOM TO, I MEAN, BECAUSE THE, THE FACILITIES ARE NOT BEING USED AT 100% HERE IN TOWN CENTER. THAT'S WHERE THAT DECREASE IS COMING FROM. OKAY.

YOU'RE ON RECREATION FEES. YEAH. IS THAT SOLELY FROM HERE AT THE TOWN CENTER? YES. THAT IS ALL THAT IS. ALL PARKS FEES. THAT DOES NOT INCLUDE THE REC. SO THE REC BREAKS OUT TO THE ARC.

I'M SORRY. THE ARC REC BREAKS OUT BY ITSELF AND EVERYTHING THAT'S NOT THE ARC IS INCLUDED IN REGULAR RECREATION FEES. SO IF YOU LOOK AT WHAT WE DID IN THE ORIGINAL BUDGET FOR FY 2026, AQUATICS AND RECREATION DIDN'T HAVE A BUDGET IN THE BEGINNING, BUT WHEN WE REVISED IT, WE WANTED TO MOVE THAT TO A COUPLE OF MILLION THAT WE RECEIVE FOR THE ARC. AND THEN WE CONTINUED THAT ON FOR FY 2027. FOR THE ARC, WE PROPOSED THAT REVENUE TO BE 2.2 MILLION AND EVERYTHING THAT'S NOT THE ARC IS 307,000. WOW. AND THAT THAT IS THAT IS BECAUSE OF THE CHANGE THAT IS HAPPENING AT THE CIVIC CENTER, THE REDUCED HOURS, I BELIEVE RIGHT NOW THEY'RE ONLY OPEN IN THE EVENINGS. SO DEFINITELY, I THINK OUR NEW PARKS, DIRECTOR IS LOOKING AT PROGRAMING AND WHAT WE CAN DO TO SUSTAIN THE REVENUE THAT WE'VE BEEN GETTING. YEAH.

BECAUSE THAT'S, THAT'S HUGE. THAT'S 85% REDUCTION IN JUST REVENUE AT A PLACE WHERE PEOPLE

[01:15:02]

WE'RE CERTAINLY NOT AT ONE NOW AT THIS TIME IN THE BUDGET WE BUDGETED TO BRING IN REVENUE THAT WE DIDN'T BRING FROM THE ARC, BUT WE ALSO BUDGETED TO SPEND MONEY THAT WE DIDN'T SPEND. SO WE WE WE HAVE NEVER USED RESERVES TO OPERATE OUR GENERAL FUND BUDGET. NOW, I THINK SOME OF THE CONFUSION MAY BE WITH OUR FUND BALANCE POLICY, THE SURPLUS, WHEN YOU HAVE MONEY LEFT OVER, WHICH IS A GREAT THING. WE HAVE A POLICY IN PLACE TO MANAGE THAT. SO WHEN THAT HAPPENS, AT THE END OF EACH AUDIT, IF THERE WAS $2 MILLION LEFT OVER IN THE GENERAL FUND OVER OUR MAXIMUM CAPACITY, LET'S UTILIZE THAT TO MAKE A ONE TIME CAPITAL EXPENDITURE. LET'S UTILIZE THAT TO PURCHASE SOME HEAVY EQUIPMENT AS A ONE TIME EXPENSE, AN EXPENSE THAT'S NOT GOING TO ROLL OVER AND KEEP OCCURRING EVERY YEAR. LET'S DO SOMETHING ONE TIME THAT WE CAN DO. WHY NOT DO THAT? WE HAVE THE MONEY LEFT AND WE DON'T EVEN LOOK AT THE THE TARGET. WE LOOK AT THE MAXIMUM OUR MAXIMUM FUND BALANCE. WE'VE BEEN HITTING OUR MAXIMUM FUND BALANCE AND HAVING MONEY LEFT OVER. SO THAT'S BEEN OUR HISTORY. THANK YOU FOR CLEARING THAT UP. SURE. AND I THINK YOU MADE A VERY IMPORTANT DISTINCTION. EVEN WITH THE SURPLUS, IT CAN ONLY BE USED FOR ONE TIME EXPENSES. SO IT CAN'T BE USED TO FUND SALARIES AND THINGS LIKE THAT. THAT'S GOING TO GO OVER INTO ANOTHER YEAR, BUT ANY TYPE OF ONE TIME EXPENSE, IT CAN BE USED. MISS. MISS SUTTON, I DO HAVE A QUESTION. MY COLLEAGUE, COUNCIL

[01:20:02]

SO WE DIDN'T REALLY LOSE THE MONEY THERE. SO I DON'T WANT THE IMPRESSION TO BE THAT SOME REVENUE HAS BEEN LOST. IT JUST SHIFTED TO A NEW FACILITY AND NOW WE HAVE AN OPPORTUNITY TO GROW OUR REC RECREATION FEES WITH UNIQUE PROGRAMING THAT'S GOING TO HELP INCREASE THAT LINE ITEM IS THE WAY THAT I UNDERSTAND IT. AND I COULD BE I COULD BE WRONG, BUT THAT'S THE WAY THAT I'M, I'M VIEWING THIS. YEAH, I JUST, YOU KNOW, THE THING THAT I'M LOOKING AT, IF YOU LOOK AT 2024 AND 2025 FOR RECREATION FEES, THAT NUMBER IS ONLY HALF A MILLION IN BOTH THOSE YEARS. SO THERE'S NOTHING THAT WE WOULD HAVE DONE IN 2026 THAT WOULD HAVE BEEN DIFFERENT ENOUGH TO MAKE US GET 2 MILLION, $2 MILLION IN REVENUE. SO I REALLY BUT WE NEED TO GO BACK AND LOOK AT THAT NUMBER, WILL FLUSH IT OUT TO MAKE SURE. BUT I'M BELIEVING THAT THAT WAS, LIKE I SAID, THAT WAS ATTRIBUTED TO THE ARC. AND IN TERMS OF WHAT WE WERE ANTICIPATING GETTING IN 2026, BUT THEN WE WOUND UP BREAKING OUT THE ARC SEPARATELY FOR ITS OWN BUDGET. SO I'M THINKING THAT'S KIND OF A COMBINATION OF TWO THAT WE PROBABLY NEED TO GO BACK AND LOOK AT. YEAH, BECAUSE THE ACTUALS, I MEAN, OBVIOUSLY THERE'S A $200,000 GAP THERE, BUT IT'S NOT SO WIDE TO WHERE, AGAIN, WE FEEL LIKE WE'VE LOST $2 MILLION IN REVENUE SOMEWHERE.

THAT'S THAT'S THE IF YOU'RE JUST LOOKING AT IT FOR FACE VALUE, THAT MAY BE WHAT IT SEEMS LIKE, BUT THAT'S REALLY NOT WHAT IT IS. SO, I MEAN, I THINK THERE'S A NEED I THINK THAT MAKES IT ALMOST AN EASY, EASIER LIFT TO LOOK AT FILLING A $200,000 GAP WITH NEW PROGRAMING FOR THAT PARTICULAR FACILITY AND ALL THE OTHER THINGS IN AND AROUND, WITH THE EXCEPTION OF THE ARC, THAN IT IS LOOKING AT A $2 MILLION GAP. YES. I'M JUST I'M JUST THINKING OUT LOUD, BUT I'M JUST I'M WANTING TO MAKE SURE THAT WE DON'T WALK AWAY FEELING LIKE WE'VE LOST A SIGNIFICANT AMOUNT OF REVENUE BECAUSE OF THE ARC, OR BECAUSE OF SOME CHANGES THAT HAVE BEEN MADE THERE. IT'S REALLY JUST SHIFTING INTO A NEW FACILITY. THANK YOU. MAYOR. YES, THAT'S CORRECT. AND NO, WE DON'T WANT TO WALK AWAY WITH THAT IDEA. WHAT WHAT WE WANT TO START DOING IS FOCUSING ON THE PROGRAMING OF PARKS AS A WHOLE, YOU KNOW, WHETHER IF, IF WE NEED TO CHANGE THE BUDGET AT THE CIVIC CENTER OR AT THE ARC, WE JUST NEED TO GET THE PROGRAMING IN PLACE SO THAT WE'LL, WE'LL KNOW WHAT TO FILL IN HERE. AND, AND I THINK YOU, YOU WERE RIGHT ON WHERE I WAS GOING. SO THAT'S WHAT I WAS REALLY ASKING THAT QUESTION FOR WAS BECAUSE I KNOW THAT THE REC CENTER WAS, WAS MAKING A PROFIT. IT WAS MAKING MONEY. THEY WERE DOING THINGS HERE RIGHT AT THE CENTER. AND WE THEN CHANGED THE HOURS. AND SO I WOULD HOPE THAT EVEN THOUGH WE'VE SHIFTED THINGS TO SOME DEGREE OVER TO THE ARC, THAT WE'D ALSO STILL BECAUSE THE PERFORMER IS FOR THE ARC, RIGHT? IT'S NOT FOR THE REC CENTER, IT'S FOR THE ARC. ARE WE LOSING THAT THOUGHT PROCESS ON MAYBE FINDING OUT MAYBE A WAY TO GET HIGHEST AND BEST USE OF THIS FACILITY RIGHT HERE AT THE REC CENTER, BECAUSE WE'RE DOING A PERFORMER FOR THE

[01:25:01]

AND SO IF YOU SPLIT US DOWN THE MIDDLE HERE, POLICE IS 27% OF THE GENERAL FUND BUDGET FIRES, 19%, AND THEN THE OTHER DEPARTMENTS FALL IN PLACE AFTER THAT. AND THAT GIVES US OUR TOTAL EXPENDITURES OF 74 MILLION FOR FY 27. AT THIS TIME. OUR NEXT SECTION WOULD BE THE ENTERPRISE FUNDS. AND I BELIEVE OUR PUBLIC UTILITIES DIRECTOR. I'M NOT SURE IF HE'S READY YET.

MAYOR, AT THIS TIME, WE'RE GOING TO SWITCH TO THE PRESENTATION THAT TALKS ABOUT THE DIFFERENCES IN USER PROPOSED USER FEES FOR FY 27, AS WELL AS OUR UTILITIES DIRECTOR IS GOING TO GIVE US AN UPDATE ON THE MOST RECENT STUDY. ALL RIGHT. THERE WE GO. ALL RIGHT. THANK YOU. GOOD MORNING, MAYOR AND COUNCIL. BRANDON LACY, DIRECTOR OF PUBLIC UTILITIES. I APPRECIATE THE OPPORTUNITY TO BE ABLE TO PRESENT THE RESULTS OF OUR FY 27 RATE STUDY EVALUATION. AS YOU ARE AWARE, WE DO A RATE STUDY EVALUATION FOR PUBLIC UTILITIES AS WELL AS SANITATION EACH YEAR. FOR THE BENEFIT OF THE PUBLIC. I KNOW THE COUNCIL IS AWARE OF THIS, BUT FOR THE BENEFIT OF THE PUBLIC VOTE, BOTH PRESENT AND ONLINE, THE PUBLIC UTILITY FUND, AS WELL AS THE SANITATION FUND IS CONSIDERED TO BE AN ENTERPRISE FUND. SO WE'RE NOT SUPPORTED BY GENERAL FUND REVENUE BY WAY OF TAX DOLLARS, BUT THE FUNDS ARE SUPPORTED BY RATES THAT WE CHARGE FOR SERVICES THAT ARE PROVIDED. SO IN THIS CASE, YOUR WATER AND SEWER SERVICE AND YOUR WEEKLY TRASH OR YOUR BULK SERVICE. SO AS WE ARE AN ENTERPRISE FUND, IT IS THE RESPONSIBILITY OF STAFF TO BRING FORTH A RECOMMENDATION TO COUNCIL OF A RATE MODEL THAT, AT THE VERY LEAST, COVERS THE CITY'S EXPENSES AS WELL AS PROVIDES A REVENUE FOR OPERATION. SO, AT THIS TIME, I HAVE OUR RATE STUDY CONSULTANT, MISS ANGIE FLORES, WITH US. I BELIEVE THIS IS THE THIRD YEAR THAT REPTILLUS HAS BEEN WITH US. SHE WILL GIVE AN EVALUATION OF THE RESULTS OF OUR RATE STUDY REVIEW. IF YOU HAVE ANY QUESTIONS RELATED TO THE STUDY, SHE WILL BE ABLE TO TAKE THOSE. IF YOU HAVE ANY DEPARTMENTAL SPECIFIC QUESTIONS FOR PUBLIC UTILITIES, I WILL TAKE THOSE. AND IF YOU HAVE ANY QUESTIONS REGARDING SANITATION, CITY MANAGER CAMERON, WOULD YOU BE SO KIND? SURE. YES. THANK YOU VERY MUCH. ALL RIGHT. AT THIS TIME, I WILL BRING UP MISS ANGIE FLORES WITH REPTILLUS.

GOOD MORNING, MISS FLORES. GOOD MORNING. FOR THE RECORD, I'M ANGIE FLORES WITH REPTILLUS.

GOOD TO BE HERE. IS BRANDON MENTIONED, THIS IS OUR THIRD YEAR DOING THIS RATE STUDY UPDATE. SO, TODAY I'M GOING TO GO THROUGH, THE MOST RECENT UPDATE AND THE RESULTS OF THAT,

[01:30:02]

YOUR PURCHASED WATER COSTS ARE INCREASING AT ABOUT $8 MILLION, THROUGH 2028. AND THEN YOUR DEBT SERVICE, YOU'VE GOT ABOUT $3.5 MILLION IN EXISTING DEBT. WE ARE CONTINUING TO MAINTAIN YOUR RESERVE TARGETS PER YOUR POLICY. SO CURRENTLY YOU HAVE A MINIMUM RESERVE TARGET OF 20% OF OPERATIONS. AND THEN YOU ALSO HAVE A KIND OF A MIDDLE OF THE LINE TARGET THERE AT 30% AND THEN A MAX OF 35%. AND SO WE'RE MAINTAINING THOSE AS WE'RE LOOKING AT THOSE NUMBERS.

SO FOR THE FIVE YEAR OUTLOOK, AND WE'RE LOOKING AT THIS IN FIVE YEAR INCREMENTS AS WE DO EACH OF THE UPDATES, OVER THE FIVE YEARS WE'RE SEEING, HAVE INCLUDED A 20% AVERAGE INCREASE ON THE SEWER TREATMENT COSTS. AS YOU CAN SEE FROM THAT MAJOR COST DRIVER, THOSE CONTINUE TO INCREASE. SO WE WANT TO BE CONSERVATIVE IN THAT FORECAST. WE'RE, WE'VE GOT THE PURCHASED WATER INCREASING AT 2.3% OVER THE NEXT FOUR YEARS. AND OF COURSE, BOTH OF THOSE COSTS ARE SUBJECT TO CHANGE BECAUSE THOSE ARE DEPENDENT ON YOUR PROVIDERS OF THOSE SERVICES. THE CAPITAL IMPROVEMENTS, WE'RE FORECASTING ABOUT $54 MILLION IN CAPITAL IMPROVEMENTS BETWEEN 26 AND 2030. SO YOUR CAPITAL PLAN CONTINUES, TO BE REQUIRED TO DO, TO MAKE THOSE IMPROVEMENTS TO SERVE YOUR CUSTOMERS. SO BASED ON THAT CAPITAL IMPROVEMENT PLAN, WE ARE ALSO, FORECASTING, ABOUT $13 MILLION A YEAR IN FUTURE DEBT SERVICE, OR FUTURE BOND ISSUANCES. I'M SORRY. FOR 27, 2829, SO THE DEBT SERVICE RELATED TO THAT $13 MILLION BOND ISSUE IS INCLUDED IN OUR FORECAST. SO THIS IS THE FINANCIAL OVERVIEW. SOMETHING HAPPENED TO OUR COLORS HERE. SO THE SORRY, SO THAT LINE THERE THAT YOU SEE ON THE LEFT WITH NO RATE INCREASES, YOU CAN SEE THERE THAT, THAT WITHOUT ANY RATE INCREASES, YOU WOULD NOT BE COVERING YOUR COSTS, WHICH WOULD MAKE YOU NON-COMPLIANT WITH YOUR RESERVE POLICY. SO WE ARE NOT RECOMMENDING THAT WE ARE RECOMMENDING OVER TO THE RIGHT, YOU'LL SEE THERE THAT WE ARE FORECASTING THE NEED FOR 9%, RATE INCREASES FOR THE NEXT FOUR YEARS, AND THEN 8% IN 2031. THIS, THESE INCREASES KEEPS YOU COMPLIANT WITH THAT RESERVE POLICY AND MAINTAINS YOUR FUND BALANCE, AT A HEALTHY LEVEL. IN CASE THERE'S ANY UNFORESEEN, UNEXPECTED EXPENSES TO THE UTILITY. SO THAT'S WHAT WE'RE RECOMMENDING IS A 9% RATE INCREASE FOR 27. FOR THE SANITATION FUND. SAME THING HERE. WE'VE GOT THE COST DRIVERS, WE'VE GOT ABOUT 3% INCREASE IN EXPENSES YEAR OVER YEAR. FOR YOUR CONTRACTUAL SERVICES WERE, ESCALATING THOSE AT 4%, WHICH IS IN LINE WITH

[01:35:02]

AND THIS IS FOR AN AVERAGE USER OF 7600 GALLONS FOR WATER. AND FOR SEWER, THAT'S 4200 GALLONS FOR SEWER. YOU CHARGE ON A WINTER AVERAGE. SO WE'RE ADJUSTING FOR THAT. SO YOU CAN SEE THERE THAT THE EXISTING CUSTOMERS ARE PAYING ABOUT $103. AND THAT WOULD GO TO 112. KIND OF HARD TO SEE THAT. YES. SO HERE'S A SAMPLE RESIDENTIAL BILL. SO THE CURRENT BILL IS 103 GOING TO 112 BASED ON THAT 9% INCREASE. AND AGAIN THIS IS FOR AN AVERAGE USER. HERE IS A SAMPLE COMMERCIAL BILL. THIS IS FOR A ONE INCH METER AT 25000 GALLONS. FOR SEWER THEY PAY BASED ON THEIR ACTUAL WATER CONSUMPTION. SO IT IS NOT BASED ON A WINTER AVERAGE. THAT BILL WOULD GO FROM $351 TO $383. ANY QUESTIONS? I DO. YES. THANK YOU FOR YOUR PRESENTATION. AND THIS MAY REQUIRE OUR, OUR DIRECTOR TO COME UP AS WELL. BECAUSE WE'RE IN THE MIDDLE OF, YOU KNOW, FOR LACK OF BETTER WORDS, A SITUATION WITH THE WAY THAT THE, SWITCH UP WITH THE NEW SOFTWARE AND EVERYTHING. I'M GOING TO ASK FROM THE PERSPECTIVE OF THE PUBLIC, IS THERE A POSSIBILITY THAT WE HAVE NO INCREASE IN THE YEAR 2027 TO ALLOW FOR THE COMMUNITY TO ABSORB THESE CHANGES THAT THEY'VE JUST BEEN PROVIDED? WITHIN THE LAST THREE MONTHS.

ALL RIGHT. YOU KNEW I WAS GOING TO ASK. YES, MA'AM. AND THANK YOU VERY MUCH, VERY MUCH FOR THE QUESTION, BECAUSE I DID I WAS ANTICIPATING THAT QUESTION. WHILE WE DO UNDERSTAND, YOU KNOW, THE BURDEN THAT THE TECHNOLOGY SWITCHOVER HAS CAUSED, AS I MENTIONED AT THE TOP OF MY PRESENTATION, YOU KNOW, THE PUBLIC UTILITIES FUND IS A ENTERPRISE FUND. SO THEREFORE OUR ONLY SOURCE OF REVENUE IS THE RATES THAT WE CHARGE. 83% OF MY BUDGET AND PUBLIC UTILITIES FUND IS THE PASS THROUGH COSTS FROM OUR WHOLESALE PARTNERS, WHERE WE BUY WATER FROM DALLAS WATER UTILITIES, TRINITY RIVER AUTHORITY AND PERSONNEL. SO RIGHT OFF THE BAT, 83% PERCENT OF MY BUDGET IS REALLY KIND OF OUTSIDE OF THE REALM OF OUR CONTROL. SO AS I MENTIONED, PART OF THE GREAT RESPONSIBILITY THAT I HAVE IS THE PUBLIC UTILITIES DIRECTOR IS TO BRING FORTH THE RECOMMENDATION THAT, NUMBER ONE, COVERS OUR EXPENSES. AND NUMBER TWO MAINTAINS THAT, THAT LEVEL OF SERVICE THAT OUR RESIDENTS ARE ACCUSTOMED TO, THAT THEY QUITE FRANKLY DESERVE, OUR EXPENSES ARE GOING UP. SO THEREFORE, WE HAVE TO FIGURE OUT SOME WAY TO, TO COVER THOSE SERVICES. THE ONLY ALTERNATIVE WOULD BE AS YOU WOULD SEE, YOU KNOW, THERE'S A LOT OF CAPITAL IMPROVEMENT PROJECTS GOING ON.

CUSTOMERS ARE, HAVE BEEN VERY INTENTIONAL ABOUT, YOU KNOW, INFRASTRUCTURE IMPROVEMENTS.

[01:40:05]

THAT'S AN INCREASED FEE. SO I WAS HOPING THAT I'D THROW IT OUT THERE. YOU KNOW, I DON'T KNOW WHAT THE APPETITE OF EVERYBODY, BUT I'M JUST TELLING YOU FROM MY PERSPECTIVE AS A COUNCIL MEMBER, AS I SPEAK WITH THE PEOPLE IN THE COMMUNITY, MY QUESTION TO, TO, TO THIS WHOLE THING IS, IS THERE NOT A WAY TO LET US ABSORB WHAT WE HAVE RIGHT NOW WITH THE NEW CHANGE AND THE NEW FEE BEFORE WE ADD ANOTHER FEE? SO, SO THAT'S REALLY WHERE I'M GOING WITH THAT. AND COUNCIL MEMBER PARKER, IF YOU WOULD ALLOW ME TO MAKE ONE MINOR CORRECTION. SO THE PUBLIC UTILITIES DEPARTMENT WAS PRETTY INTENTIONAL WITH BRINGING THAT INFORMATION FORWARD PRIOR TO AS FAR AS THE PASS THROUGH FEES FOR CREDIT CARD CHARGES. YOU KNOW, UNFORTUNATELY, THAT WAS BECOMING ABOUT A $200,000 EXPENSE. AND THAT, THAT IS SOMETHING THAT HAD TO BE FIGURED INTO OUR RATE. SO THAT'S NOTHING, THAT'S NOT A VERY UNUSUAL BUSINESS PRACTICE. THERE ARE ALTERNATIVES IF YOU WOULD CHOOSE NOT TO, IF YOU DO NOT WANT TO CHARGE THAT FEE BY WAY OF, YOU KNOW, CASH CHECK OR DOING A BANK DRAFT DIRECTLY OUT OF YOUR BANK ACCOUNT. SO THERE ARE OPTIONS THERE. SO TO YOUR LAST QUESTION, ABSOLUTELY.

THERE IS A WAY TO ABSORB THIS BECAUSE ANY RATE THAT WE BRING FORWARD THE RECOMMENDATION IS GOING TO BE EFFECTIVE OCTOBER 1ST. SO WE STILL HAVE A FEW MONTHS TO ESSENTIALLY WORK OUT THE KINKS. AS I AS I MENTIONED BEFORE, I WOULD NOT RECOMMEND NOT DOING ANYTHING BECAUSE THAT THAT DOES THAT CAN HAVE SOME VERY DETRIMENTAL CONSEQUENCES AS FAR AS, WE WOULD HAVE TO REALLY GO BACK AND LOOK AND MAKE SOME PRETTY DIFFICULT DECISIONS AND SOME RECOMMENDATIONS ON, YOU KNOW, CERTAIN PROJECTS THAT WE MIGHT NOT BE ABLE TO DO NOW. AND THAT'S, THAT'S GOING TO HAVE A DOWNSTREAM EFFECT WITH MAINTAINING OUR MINIMUM SERVICE LEVEL. SO I WOULD NOT RECOMMEND THAT. OKAY. THANK YOU FOR THAT. AND SO YOUR RECOMMENDATION IS THAT THERE IS AN INCREASE, IS YOUR RECOMMENDATION THAT THE INCREASE HAS TO BE THE 9%, OR IS THERE A POSSIBILITY TO GO LOWER THAN 9% IS REALLY MY QUESTION TO YOU. SO I MIGHT YIELD THIS TO ANDY, BUT, THE 9% REALLY FOR THOSE RESIDENTS AND FOR SOME OF YOU WHO'VE BEEN ON THE COUNCIL FOR A FEW YEARS, THAT REALLY SHOULD NOT COME AS A SURPRISE BECAUSE THEY REALLY PENCILS AND CHECKS IN WITH WHAT WE HAVE MENTIONED OVER THE LAST COUPLE OF YEARS. SO AS I MENTIONED, WE DO A RATE STUDY EVALUATION EVERY YEAR WITH THE COMPREHENSIVE STUDY GOING EVERY FIVE YEARS. WE REALLY DID NOT CHANGE THE RECOMMENDATION BECAUSE WE, YOU KNOW, WE GIVE A FIVE LAP BELIEVE LAST YEAR, WE GAVE A FIVE YEAR OUTLOOK. SO WE WERE PRETTY INTENTIONAL THAT WE WERE GOING TO STICK WITH THAT 9%. SO FOR THOSE THAT ARE ENGAGED, THEY WILL PROBABLY REMEMBER THAT THAT 9% WAS MENTIONED QUITE, QUITE A FEW TIMES. OH NO, I KNOW IT WAS MENTIONED. WHAT I'M SAYING TODAY IS, IS BECAUSE OF WHAT HAS GONE ON, IS THERE A POSSIBILITY TO DO LESS THAN THE 9% IS WHAT I'M ASKING. OKAY, SO I REALLY, I DON'T REALLY WANT TO TIE THOSE TWO SITUATIONS UP TOGETHER. BUT, YOU KNOW, I WILL SAY THIS, I THINK ANDY HAD A SLIDE UP THERE THAT SHOWS THE DETRIMENT OF, YOU KNOW, THE CITY DOES HAVE A FUND BALANCE POLICY THAT WE, YOU KNOW, TRY TO, YOU KNOW, MAINTAIN CONSISTENT WITH AND MAINTAIN COMPLIANCE WITH BECAUSE AS MISS SUTTON MENTIONED EARLIER, WHEN YOU DO HAVE EXCESS FUND BALANCE, WE ARE ABLE TO SHIFT THAT FUNDING OVER TO ALLOCATE TOWARDS OUR CAPITAL IMPROVEMENT PROJECTS. IN THE ABSENCE OF THAT FUND BALANCE, GUESS WHAT WE HAVE TO DO SELL DEBT. SO THERE'S A THERE'S A IF AND THEN, YOU KNOW, WE ALL HAVE OPTIONS. AND LIKE I SAID, THIS IS A RECOMMENDATION. IT'S A VERY STRONG RECOMMENDATION BECAUSE I DO FEEL LIKE THERE WILL BE A LOT OF UNINTENDED CONSEQUENCES BY, BY NOT INCREASING THE RATE. I GET IT, I UNDERSTAND IT, IT'S NOT ONE OF MY FAVORITE THINGS TO DO BECAUSE OBVIOUSLY I PAY A WATER BILL AS WELL. NOBODY LIKES TO PAY MORE FOR ANYTHING. BUT THAT'S JUST, IT'S REALLY THE WORLD WE'RE LIVING IN NOW.

WE HAVE TO BE ABLE TO COVER OUR COST, MAINTAIN COST OF SERVICE, AND THAT IS OUR MAIN SOURCE OF REVENUE. OKAY. THANK YOU, MADAM MAYOR. MAYOR. YEAH, I WAS JUST GOING TO KIND OF REITERATE WHAT I WAS GOING TO SAY ANYWAY, BUT I DO WANT TO MENTION THIS. FOR THE REGULAR RESIDENTS, YOU KNOW, WE GET OUR WATER FROM DALLAS, RIGHT? CORRECT. AND THEN THE SEWER, WE PAY THE TRINITY RIVER AUTHORITY. YES, SIR. OKAY. SO I WANT JUST EVERY RESIDENT TO BE CLEAR ABOUT SOMETHING. THERE'S

[01:45:02]

SO AS A WHOLESALE CUSTOMER OF, TARA, YOU KNOW, I ESSENTIALLY SIT IN THE SEAT THAT Y'ALL OCCUPY DURING THEIR BUDGET REVIEW MEETINGS. AND I, I PEPPERED THEM WITH QUESTIONS AS WELL, AS WELL AS, YOU KNOW, DUNCANVILLE, CEDAR HILL AND THE REST OF THEIR WHOLESALE CUSTOMERS JUST TO SEE, OKAY, LOOK, IS THERE ANY WAY WE, YOU KNOW, WE CAN AVOID THIS? THEY'RE GROWING AS WELL. THE METROPLEX IS GROWING. SO WITH THAT BEING SAID. SO PLANTS HAVE TO BE EXPANDED. SEWER SEWER LINES HAVE TO BE EXPANDED. WATER INFRASTRUCTURE HAS TO BE EXPANDED. SO THEY'RE REALLY IN THE SAME BOAT THAT WE ARE IN. SO TO ANSWER YOUR QUESTION, IT IS A PASS THROUGH FEE, RIGHT. AND AS THEY AS THEY INCREASE OURS, WE HAVE TO BE ABLE TO COVER THAT, THAT THAT COST. THAT WAY THE FUND DOESN'T END UP BEING UPSIDE DOWN, 100%. SO TO PIGGYBACK OFF OF THAT, SO RESIDENTS ARE ASKING. SO JUST GO AHEAD AND CLEAR IT UP. NOW, IS THERE ANY WAY THAT OUR MY WATER BILL CAN GO DOWN? AND THEN THE SECOND QUESTION, WHAT IS THE COMPARABLE TO THE OTHER CITIES? ARE WE IS THIS THE HIGHEST. ALL RIGHT. SO THANK YOU FOR YOUR QUESTION, COUNCILMAN WATERS. LET'S TAKE A LOOK AT THIS SLIDE HERE. SO I'M SORRY. OH, COUNCIL I'M GONNA HAVE TO GET I GOT THREE YEARS TO GET THOSE W'S CORRECT.

COUNCILMAN WESLEY, I APOLOGIZE. SO IF YOU LOOK AT THE SLIDE HERE, I'VE ASKED THE CONSULTANTS TO PUT OUR EXISTING AS WELL AS PROPOSED WHAT I WHAT I ALWAYS LIKE TO EMPHASIZE EACH YEAR IS WHAT THIS SLIDE IS LOOKING AT IS IF EVERYTHING STAYS STATUS QUO, BECAUSE THIS THESE RED OAK FARES, ALL THE OTHER CITIES. THIS IS THE RATES AS THEY ARE TODAY. SO IF EVERYTHING REMAINS STATUS QUO AND THERE IS NO SHIFT IN ANY OF THOSE CITY'S RATES AND WE INCREASE OUR RATES, WE'RE STILL ONE OF THE LOWEST IN THE REGION. NOW, I WILL SAY THIS. I'VE HAD SOME KIND OF CONVERSATIONS WITH SOME OF MY COLLEAGUES AND OTHER CITIES. I DON'T KNOW HOW THEY'VE COMMUNICATED TO THEIR COUNCIL, SO I WON'T NAME THEM JUST IN AN EFFORT TO PROTECT THE INNOCENT. BUT EVERYBODY HAS TOLD ME THAT THEY DO EXPECT TO EITHER BRING FORWARD AN INCREASE OR A CONTINUATION OF INCREASES, BECAUSE SOME CITIES WILL ACTUALLY DO. THEY'LL TAKE IT TO THE COUNCIL ALL AT ONE TIME FOR A THREE YEAR INCREASE YEAR OVER YEAR, INSTEAD OF, YOU KNOW, HOW WE DO IT, TAKING IT EACH INDIVIDUAL YEAR FOR REVIEW. THANK YOU. CLEARED IT UP BECAUSE THEY WANTED THE MICROPHONE. I'M SORRY. THANK YOU FOR CLEARING THAT UP BECAUSE THEY WANT TO KNOW. WELL, YOU KNOW, CAN IT GO DOWN? WHY IS THAT SO HIGH. AND THEN THEY WANT TO COMPARE IT TO OTHER CITIES. AND I DON'T THINK THEY HAD THE TRUE FACTS. AND THIS IS A WONDERFUL GRAPH RIGHT HERE OF BAR CHART TO SHOW WHERE WE'RE AT COMPARED TO OTHER CITIES. SO THANK YOU. AND COUNCIL MEMBER WESLEY, WHEN YOU'RE TALKING TO YOUR CONSTITUENTS, I THINK ONE OF THE MOST IMPORTANT THINGS TO EMPHASIZE IS, YOU KNOW, IT'S CALLED YOUR WATER BILL. YOUR WATER BILL IS NOT JUST YOUR WATER BILL. CORRECT. IT DOES INCLUDE DRAINAGE, YOU KNOW, TRASH, WATER AND SEWER. SO YEAH, CUMULATIVELY, THE TOTAL. BUT REALLY WHEN YOU BREAK IT DOWN, IT DOES INCLUDE MORE THAN JUST YOUR WATER, WATER AND SEWER. YES, SIR. COUNCIL MEMBER NORTH, DID YOU HAVE A COMMENT? I SAW YOUR MICROPHONE ON EARLIER. I DID HAVE A COMMENT, BUT I I'M TRYING TO FORMULATE MY QUESTION, REGARDING THIS. FIRST OF ALL, THANK YOU FOR WONDERFUL PRESENTATION BECAUSE I'M, I'M THINKING ABOUT OUR WATER INFRASTRUCTURE THAT WE'VE IMPROVED, MADE IMPROVEMENTS ALONG THAT IN TERMS OF, METERS, IF YOU WILL. AND I'M ALSO WAS THINKING ABOUT, YOU KNOW, LIKE THE CURRENT NEWS, EVERYBODY IS TALKING ABOUT DATA CENTERS. AND

[01:50:01]

AND THANK YOU, MISS FLORIDA, FOR BEING HERE. THANK YOU FOR THIS SLIDE, MR. LACEY. I ONE OF MY FAVORITE WORDS IS CONTEXT. RIGHT? AND SO WHEN WE'RE TALKING TO OUR CONSTITUENTS AND EDUCATING THEM ON THIS AND WE, YOU KNOW, THEY FORGET THAT WE GET THE SAME WATER BILL, THEY GET IN THE, YOU KNOW, IN THE MAIL. AND SO I'M, I WAS VERY I AND I'VE SEEN THESE SLIDES BEFORE, BUT I DIDN'T REALIZE DESOTO WAS NEARLY ALMOST AT THE BOTTOM IN TERMS OF, THE COST.

SO THANK YOU FOR PROVIDING THAT CONTEXT. ALSO, CAN YOU CONFIRM THAT IT WAS MENTIONED ABOUT THE ADDITIONAL FEE THAT RESIDENTS NOW PAY, THAT THE CITY ACTUALLY WAS PAYING PRIOR TO THAT? CORRECT. IN TERMS OF THE FEES FOR THE PROCESSING PAYMENT PROCESSING FEE, THE CITY WAS ACTUALLY ABSORBING THAT COST TO THE TUNE OF SEVERAL HUNDRED THOUSAND DOLLARS A YEAR. AND SO RESIDENTS CAN AVOID PAYING THAT FEE BY PAYING BY ELECTRONIC CHECK OR SOMETHING TO THAT EFFECT, CORRECT. ELECTRONIC CHECK OR ACH, AS WELL AS, CASH OR CHECK. CERTAINLY. THANK YOU.

SO THEY CAN THEY THERE'S A WAY FOR THEM TO AVOID HAVING TO PAY. I THINK IT'S $353.50. THERE ARE OPTIONS. SO THERE ARE OTHER OPTIONS FOR RESIDENTS TO PAY SO THEY CAN AVOID THAT FEE AS WELL.

THANK YOU, MR. CITY MANAGER. YEAH, I JUST WANT TO ADD REGARDING THE TO TO KIND OF PIGGYBACK ON YOUR COMMENT ABOUT THE FEE. SO, YOU KNOW, WE USED TO, WE USED TO HAVE A LINE ITEM IN THE UTILITIES BUDGET THAT WAS FOR CREDIT CARD EXPENSES, RIGHT. AND THAT WAS FOR THE FEES. BUT THAT, THAT MEANT THAT, THAT ALL OF THAT WAS INCLUDED IN THE RATE. AND, BUT REMEMBER, NOT EVERYBODY USES CREDIT CARD CREDIT CARDS, RIGHT? SOME PEOPLE, YOU KNOW, LIKE MR. LACEY SAYS, THEY, THEY DO BANK DRAFT OR THEY COME IN AND PAY OR THEY PUT THE CHECK IN THE MAIL. AND SO EVERYBODY WAS PAYING FOR THAT RATE FOR EVERYBODY THAT, YOU KNOW, FOR, FOR US TO ABSORB THAT. SO THIS WAY IT BREAKS IT OUT SO THAT ONLY THE PEOPLE WHO WANT TO USE CREDIT CARDS ARE CHARGED. THE RATE, THE FEE SHOULD I SAY, AND EVERYBODY ELSE, IF THEY DO DO ACH OR BANK DRAFT OR WHATEVER, THEY DON'T, THEY DON'T PAY IT. SO IT JUST PUTS THAT RESPONSIBILITY ON THOSE PEOPLE WHO WANT TO USE THAT SERVICE. THANK YOU FOR THAT DISTINCTION.

WE CAN CONTINUE. ALL RIGHT. THANK YOU. I BELIEVE THAT WAS IT FOR THE RATE PRESENTATION.

IF Y'ALL DON'T HAVE ANY QUESTIONS REGARDING SANITATION, I SEE NO LIGHTS. THANK YOU, THANK YOU. THERE WAS NO QUESTIONS. I DO WANT TO MAKE A STATEMENT. I'M GLAD TO SEE THAT THERE'S NO INCREASE THIS YEAR. THAT'S ALSO GOOD. WE NEED TO MAKE CERTAIN WE SHOUT THAT TO THE ROOFTOPS, BECAUSE SANITATION WAS PROBABLY GOING TO GO UP AS WELL. SO GLAD TO SEE THAT THERE'S NO INCREASE THERE. THANK YOU. ALL RIGHT. THANK YOU ALL. MISS SUTTON, CAN I MAKE A STATEMENT BEFORE YOU GO TO YOUR NEXT ITEM? SURE. NOW WE HAVE ON THE AGENDA A BREAK FOR LUNCH. HOWEVER, WE HAVE LUNCH SCHEDULED FOR 1130. SO IS IT POSSIBLE TO CONTINUE WITH SOME OF THESE OTHER ITEMS THAT WE HAVE THAT WERE DUE TO BE DISCUSSED IN THE SECOND HALF? THE CIP SPECIAL REVENUE? ABSOLUTELY TO IT. ALL RIGHT. THANK YOU. OKAY. ALL RIGHT. SO, THANK YOU, PUBLIC UTILITIES FOR THAT PRESENTATION. SO NOW WE'VE KIND OF DISCUSSED THE REVENUE WITH PUBLIC UTILITIES AND WHAT THAT INCREASE IS GOING TO LOOK LIKE. SO NOW WE CAN WALK THROUGH THE EXPENDITURES A BIT IN THE ENTERPRISE FUNDS, SPECIFICALLY, SPECIFICALLY IN THE PUBLIC UTILITY FUND, AS WE MENTIONED, OF COURSE, THE 9% RATE INCREASE WATER ON THE WATER AND SEWER SIDE, TRADWU INCREASES ANNUALLY. SO THESE EXPENDITURES ARE COVERING THAT, AS WELL AS SUPPORTING A FUTURE DEBT ISSUE, IN THE PROPOSED AMOUNT OF 13 MILLION ON THE NEXT BOND SALE. SO HERE WE HAVE THE EXPENDITURES THAT ARE BROKEN OUT BY CATEGORY IN ADMINISTRATION. AND YOU CAN SEE THE, THE HISTORY THERE OF THE BUDGETED AND ACTUAL EXPENDITURES, AS WELL AS IN UTILITY BILLING. WE HAVE THE NEXT CATEGORY IS UTILITY FIELD

[01:55:01]

SANITATION IS LISTED HERE. YOU HAVE THOSE IN YOUR BOOK AS WELL. PROPOSED REVENUE IS 7.941 MILLION FOR FY 2027 AND EXPENDITURES IS 7,904,984. SO A SMALL SURPLUS THERE. WE WOULD LIKE TO REALIZE AT THE END OF FY 27, AGAIN IN THIS FUND, WE ARE PROPOSING A NEW FULL TIME POSITION WHICH IS THE SANITATION AND CODE COMPLIANCE OFFICER. AND THAT ONE IS GOING TO BE MOSTLY DEDICATED TO MONITORING BULK TRASH AND OTHER COMPLIANCE AREAS WITHIN SANITATION. QUICK QUESTION, CAN WE GO BACK? WHERE, WHERE WE'RE TALKING ABOUT THE ONE COMPLIANCE OFFICER, THAT PERSON WILL SIT IN CODE AS OPPOSED TO THE PERSON WHO SITS IN THE CMO'S OFFICE. YES, YES. WELL, THAT PERSON WILL WILL BE HOUSED UNDER CODE, BUT THEY WILL BE KIND OF ASSIGNED TO BOTH TRASH AND THE PERSON THAT YOU MENTIONED IN THE CMO OFFICE, THAT PERSON IS THE SANITATION COORDINATOR. THEY, THEY DEAL SPECIFICALLY WITH THE, THE PHONE CALLS AND THE THINGS RELATED TO TRASH AND BRUSH AND BULK. THE, THE CODE OFFICER WILL ACTUALLY BE OUT IN THE FIELD, OBSERVING, OBSERVING, SITUATIONS REGARDING THE BULK AND BRUSH AND, YOU KNOW, TAGGING AND DOING THOSE TYPE OF THINGS AS NECESSARY. I GUESS MY QUESTION IS, IS, REPUBLIC SERVICES, WE PAY REPUBLIC SERVICES FOR THEM TO MAKE CERTAIN THAT THEY UNDERSTAND WHAT'S OUT THERE IN THE, IN THE, IN THE COMMUNITIES. SO YOU'RE SAYING WE NOW ARE ASKING FOR A PERSON TO SIT IN AN OFFICE OR IN THE FIELD? WHO IS THE CITY'S PERSON WHO WOULD THEN REPORT TO, THEY WOULD REPORT THEIR FINDINGS TO REPUBLIC SERVICES? NO, THIS IS MORE MORE OF AN ENFORCEMENT. IT'S JUST LIKE CODE ENFORCEMENT DOES. NOW THEY GO OUT AND THEY IDENTIFY, YOU KNOW, VIOLATIONS AND THEY AND THEY WRITE CITATIONS. THEY DO.

ALL THIS PERSON WILL DO THAT. NO, I UNDERSTAND, BUT WHAT I'M SAYING IS, IS REPUBLIC SERVICES, WE'RE PAYING THEM. AND THEN, YOU KNOW, AS YOU CAN SEE HERE, THERE'S A 3.5% INCREASE EVERY YEAR IT HAS HAPPENED. THIS IS THE SECOND YEAR. AND, AND BY THE WAY, YOU KNOW, LIKE I SAID, I'M NOT TRYING TO FEAR MONGER OR ANYTHING LIKE THAT, BUT THE BULK SERVICES HAVE BEEN, YOU KNOW, VERY CHALLENGING THIS YEAR AND LAST YEAR AND THAT THAT HAS NOT CHANGED. SO MY QUESTION IS, IS WE'RE INCREASING THEIR BUDGET, WE'RE INCREASING THEIR PAY, WE'RE INCREASING WHAT WE DO WITH REPUBLIC SERVICES. BUT WE'RE ALSO THEN SAYING ON THE CITY SIDE, WE NEED TO ALSO INCREASE OUR PIECE TO PUT A PERSON IN PLACE TO DO WHAT WE WOULD EXPECT THAT REPUBLIC DO. YEAH. SO BUT OUR CONTRACT WITH REPUBLIC, IS SPECIFICALLY FOR COLLECTION. IT'S NOT FOR IT'S NOT FOR MONITORING, IT'S NOT FOR ANY OF THAT OTHER STUFF.

IT'S FOR COLLECTION. AND SO THAT'S, THAT'S, THAT'S, THAT'S WHERE THIS, PIECE COMES, THAT'S WHERE THIS POSITION COMES IN TO HELP US WITH THE COMPLIANCE ASPECT OF IT. OKAY. I JUST THOUGHT THAT WAS KIND OF INTERESTING. SO I WAS GOING TO ASK ABOUT THAT. THAT'S WHY I SAID ABOUT THAT EARLIER ABOUT IT NOT INCREASING ON THE SANITATION SIDE FOR THE BILL.

THE WATER BILL IS CONCERNED, BUT THIS SEEMS TO ME, OKAY, I YIELD BACK. BUT I WOULD ALSO LIKE TO ASK, CITY MANAGER, WITH THEM INCREASING 3.5% EVERY YEAR, IS THERE ANYTHING THAT THEY DO AS FAR AS GIVE BACK OR DO THEY COME? HOW DO THEY WITH IT GOING UP? WHAT DO THEY ALSO OFFER IN THAT INCREASE? OR HOW DO THEY GIVE BACK? THANKS. YEAH, THAT'S A GOOD QUESTION. THEY, AS MADAM MAYOR MENTIONED, THEY WERE ONE OF THE SPONSORS OF THE, EVENT WE ATTENDED LAST NIGHT FOR, TML REGION 13 MEETING. BUT THEY DO WE THERE'S A PORTION OF FUNDS THAT WE RECEIVE FROM REPUBLIC RELATED TO, HOUSEHOLD HAZARDOUS WASTE. THEY, WE GET A CHECK FROM THEM EVERY YEAR AND I

[02:00:02]

IT COMES BACK INTO THE SANITATION FUND UNDER MISCELLANEOUS REVENUE. YEAH.

MAYOR PRO TEM THANK YOU. I WAS JUST GOING TO SAY I THINK THIS IS A GREAT AD. COUNCIL MEMBER WESLEY AND I HAD AN OPPORTUNITY TO RIDE WITH A CITIZEN JUST A FEW DAYS AGO. SO I THINK THIS IS DEFINITELY GOING TO HELP, YOU KNOW, THIS THIS DESIGNATED ENFORCEMENT OFFICER COMPLIANCE OFFICER. AND THAT'S WHAT WE DID. WE LOOKED AT TRASH AND BULK THAT'S BEEN OUT EXTENDED PERIODS OF TIME. SO I, I JUST WANT TO SAY I SUPPORT IT. THANK YOU. THANK YOU. WE CAN CONTINUE.

THANK YOU. MR. THE NEXT, ENTERPRISE FUND IS THE DRAINAGE FUND. AND HERE YOU CAN SEE OUR BUDGET FOR FY 26 COMPARED TO BUDGET FY 27. THE REVENUE DOES CONTINUE TO INCREASE. AND OF COURSE, WE DISCUSSED ADDING A POSITION, TO THE DRAINAGE FUND AS WELL. DRAINAGE ENGINEER. A COUPLE OF MONTHS AGO, COUNCIL APPROVED A STREAM STREAM BANK AND CREEK BANK EROSION MITIGATION PROGRAM. AND ALONG WITH ASSISTING THE CITY ENGINEER WITH HANDLING THAT IS THE DRAINAGE ENGINEER. IT'S GOING TO BE ADDRESSING VARIOUS EROSION CONCERNS ON PRIVATE PROPERTIES. THAT PROGRAM DOES BEGIN ON OCTOBER 1ST, 2026. AND THAT POSITION WILL REPORT TO THE CITY ENGINEER. THE NEXT SECTION IS CIP. I TOOK SOME OF THESE PROJECTS. WELL, THE MOST OF THESE PROJECTS LISTING FROM THE MOST RECENT PRESENTATION, THAT I MET AL CASEY, DIRECTOR AND DEVELOPMENT SERVICES PRESENTED JUST TO KEEP, COUNCIL AND THE PUBLIC AWARE OF SOME OF THE PROJECTS THAT ARE ON THE HORIZON. SOME OF THESE ARE NOT IMMEDIATE PROJECTS. WE KIND OF DISCUSSED THE TIMING OF THOSE PROJECTS AT OUR LAST MEETING AND THE FUNDING AS WELL. AND HERE ARE SOME ADDITIONAL ONES. BRIDGE PROJECTS AND DRAINAGE IMPROVEMENTS AND EROSION MITIGATION PROJECTS THAT WE'VE BEEN DISCUSSING. THE WASTEWATER PROJECTS ARE LISTED HERE AS WELL. WE HAVE OUR, R AND R RENOVATION AND REPLACEMENT PROGRAMS, WESTLAKE DRIVE, THE R&R PROGRAM FOR 2027, AS WELL AS WORK ON GILBERT AVENUE AND SOME MISCELLANEOUS PROJECTS AS WELL. I HAVE A QUESTION. SURE. IF WE CAN GO BACK REAL QUICK TO, THE PREVIOUS PAGE WHEN WE'RE SHOWING THIS ONE MORE TIME, I'M SORRY, WE'RE SHOWING THIS PAGE. I SEE THE, THE TRAFFIC SIGNAL, PROJECTS ON THERE. AND I GUESS MY QUESTION WHEN WE'RE LOOKING AT THIS, THESE ARE THE ONES THAT ARE GOING ON. I KNOW THE PARKERVILLE AND ACADEMY WAY. I THOUGHT WE WERE COMPLETED WITH THAT ONE. WOULD THAT BE ON THE LIST FOR 2027 OR? I MEAN, THIS IS JUST FOR FYI. THIS IS NOT SAYING WE'RE GOING TO BE DOING ANYTHING OVER THERE. THIS IS JUST FOR FYI WHAT, WHAT WHAT'S

[02:05:04]

[02:10:04]

OKAY, SO THE INFRASTRUCTURE MANAGEMENT PLAN IS THE IMP. EXACTLY. YES. THANK YOU, I APPRECIATE THAT. YES. YOU'RE WELCOME. COUNCILMAN. QUICK QUESTION. TO PIGGYBACK OFF OF COUNCILWOMAN PARKER, AS ME AND MAYOR PRO TEM HUGHES WALKED THE NEIGHBORHOOD, OUR OLDER NEIGHBORHOODS AND THOSE SIDEWALKS UNLEVELED CRACKING. JUST, WHAT WHAT LINE? WHAT LINE ITEM? WHAT DOES THAT MONEY COME FROM? OUT OF THE BUDGET? WHEN WE TALK ABOUT OUR OLDER NEIGHBORHOODS AND OUR SIDEWALKS. SO, THE CITY DOES NOT HAVE A DEDICATED SIDEWALK PROGRAM YET, BUT THE SIDEWALKS ARE BEING PREPARED AS PART OF OTHER PROJECTS, WHETHER IT'S AN INTERSECTION OR IT'S THE COST SHARE PROGRAM THAT WE HAVE WITH RESIDENTS OR THE I'M P SO, YOU KNOW, IF WE'RE GOING TO WORK ON A ROADWAY LIKE RECONSTRUCTION, WE'LL FIX THE SIDEWALK ALONG WITH THAT PROJECT. SO WITH NEIGHBORHOODS, YOU KNOW, SIDEWALK ALREADY, I'M SORRY, WE, YOU HAVE ESTABLISHED, SIDEWALKS, BUT IT'S AN OLDER NEIGHBORHOOD OR MAYBE ESTABLISHED IN MAYBE THE 70S. AND, THEY NEED, THEY NEED REPAIRING OR UPGRADING. SO THEY'RE ALREADY THERE. SO I WAS, IT'S NOTHING THAT'S GOING TO BE, HAVE TO BE DONE NEW. SO IF THE SIDEWALK THAT YOU'RE REFERRING TO IN FRONT OF THE PROPERTY OWNERS, THEY'RE RESPONSIBLE FOR IT. BUT THE CITY HAS A PROGRAM, A COST SHARE PROGRAM THAT WE PAY 75%. THEY PAY 25%, AND WE SEND OUR CREWS IN AND FIX THE SIDEWALK. SO, ANY RESIDENT, ANY PROPERTY OWNER, IF THEY HAVE AN ISSUE WITH THEIR SIDEWALK, THEY CAN COME IN TO THE CITY TO DEVELOPMENT SERVICES. THEY PUT AN APPLICATION, WE GO AND DO THE ESTIMATE AND WE TELL THEM, OKAY, LET'S SAY YOU WANT TO FIX YOUR SIDEWALK. IT'S GOING TO COST, LET'S SAY $300. THEN THEY'RE GOING TO PAY 25%. ONLY THE CITY WILL ABSORB 75%. AND WE SEND OUR CREWS TO FIX THE SIDEWALKS. BUT WE HAVE A CITY ORDINANCE THAT, THE REPAIR AND MAINTENANCE OF A SIDEWALK IS THE RESPONSIBILITY OF THE HOMEOWNER, WHICH IS ALSO CONSISTENT WITH THE OPERATIONS OF OTHER CITIES AS WELL. WOW. OKAY. AND, HOW DO YOU ADVERTISE THAT, THAT, BECAUSE OBVIOUSLY THEY, THESE RESIDENTS DIDN'T KNOW, KNOW OF THAT PROGRAM. SO HOW DO YOU, HOW, HOW DO YOU LET THE RESIDENTS KNOW IF THEY WANT THEIR SIDEWALKS FIXED, THAT THIS IS A PROGRAM AND HOW TO GO ABOUT DOING IT? YEAH. SO, WE ACTUALLY GET A LOT OF REQUESTS AND, YOU KNOW, WE, WE TAKE CARE OF THEM. WE HAVE THAT ON OUR WEBSITE AND A LOT OF, EDUCATION PIECE WE DO IS WHEN WE DO THE ON SITE COMMUNITY MEETING. SO THERE'S LIKE AN HOA, THIS IS WHEN I GO AND BRING MY MANAGERS AND SUPERVISORS, TALK TO THE HOA AND KIND OF EDUCATE THEM ON CITY PROGRAMS. SO IT'S ON OUR WEBSITE. BUT ALSO I WANT TO SAY LIKE, IF THERE IS LIKE A COMMUNITY THAT WOULD LIKE TO MEET WITH US, WE'D BE WILLING TO MEET WITH THEM ON SITE AND DO THE ASSESSMENT ON SITE AS WELL. SO THANK YOU. YES, SIR. COUNCIL, I JUST WANT TO ADD THAT WHEN YOU GO BACK AND LOOK AT, THE LINE ITEM THAT TALKS ABOUT INFRASTRUCTURE MANAGEMENT PLAN, YOU KNOW, WE HAVE 7 MILLION PLACED IN THAT, IN THAT, IN THAT LINE. SO MR. CASEY, MONTHS AGO WHEN HE GAVE THE PRESENTATION ABOUT THE INFRASTRUCTURE MANAGEMENT PLAN, HE GAVE THREE SCENARIOS. HE GAVE A, I THINK, $4 MILLION SCENARIO, A $7 MILLION SCENARIO, AND A $10 MILLION SCENARIO. AND IT'S ALL BASED ON THE SCORING, YOU KNOW, OF, OF THE, OF OUR

[02:15:06]

THANK YOU, MR. CAMERON. THAT WAS GOING TO BE MY QUESTION ABOUT WHEN COULD WE FORESEE THE DISCUSSION COMING BACK TO COUNCIL AGAIN? I THINK SOME OF THE QUESTION WAS JUST AGAIN, HOW WOULD BECAUSE THIS IS IN THE CIP PLAN, HOW IT WOULD IMPACT US FINANCIALLY? IT WOULD BE MY QUESTION ABOUT IT. SO IS THERE A TIME WHEN YOU ALL WERE LOOKING TO BRING THIS BACK IN ORDER TO DO THAT DISCUSSION, TO DECIDE IF IT'S THE SEVEN OR THE TEN OR THE FOUR? YES, MA'AM. I THINK WE CAN EITHER HAVE IT ON A DISCUSSION ON ON A MONDAY MEETING, OR WE CAN. WE KNOW WE HAVE GOT A PLAN OF RETREAT AS WELL, SO WE CAN HAVE IT ON, ON ONE OF THOSE, I WOULD PROBABLY WELL, LET ME SAY THIS IS JUST MY PREFERENCE, I WOULD I FEEL LIKE THE DISCUSSION DESERVES SOME TIME. I KNOW SOMETIMES ON MONDAY NIGHT MEETINGS, DEPENDING ON WHAT ALL WE HAVE ON THE AGENDA, THINGS CAN GET FAST TRACKED THOSE EVENINGS. SO I WOULD PREFER TO PUT THIS ON A RETREAT AGENDA THERE. THAT WAY WE CAN KIND OF HAVE SOME THOUGHTFUL DISCUSSION AROUND IT TO MAKE SURE WE MAKE AN INTELLIGENT DECISION ABOUT THE AMOUNT. OKAY. THANK YOU. I HAVE A QUESTION. AND SO I'M GOING TO GO BACK TO MY POINT ABOUT THE SIDEWALKS, BECAUSE, YOU KNOW, I TOLD YOU I USED TO WORK FOR THE CITY OF DALLAS WHEN WE DID THAT PROGRAM FOR SIDEWALKS. SO I COMPLETELY UNDERSTAND THAT PROGRAM. MY QUESTION TO YOU IS THE 7 MILLION THAT'S HERE NOW THAT HE, OUR INTERIM CITY MANAGER HAS EXPLAINED IT. NOW I'M GOING TO ASK THE QUESTION, HOW DO WE FIT ALL THAT INTO THAT? BECAUSE THAT'S REALLY ROADWAYS. THIS IS ACTUALLY STREETS, NOT SIDEWALKS. I'M, I'M, I WAS SPECIFICALLY ASKING ABOUT SIDEWALKS ONLY BECAUSE OF THE SITUATION WHERE WE HAVE NOT JUST OLDER NEIGHBORHOODS, IT'S EVERYWHERE. IT'S, IT'S ALL OVER THE CITY. SO WHERE IS THAT? IS HOW IS THAT FITTING INTO THE. I'M P IF YOU ALREADY HAVE 7 MILLION. AND THAT'S REALLY NOT ENOUGH FOR WHAT WE HAVE GOING ON IN THE CITY NEEDS WISE. HOW IS THAT FITTING IN THERE? YEAH. SO YOU'RE RIGHT. THE 7 MILLION IS FOR ROADWAYS AND ALLEYS. BUT IF WE'RE GOING TO GO IN AND FIX A ROADWAY AND THE SIDEWALK IS DETERIORATED, THEN THIS IS THE TIME THAT WE CAN ACTUALLY FIX THE SIDEWALK AS WELL. SO RIGHT NOW, THE WAY THAT WE FIX OUR SIDEWALKS, THREE, THREE, DIRECTIONS OR THREE, THREE MAJOR PROGRAMS, I'M P, WHICH IS SIDEWALK IN THIS CASE IS BYPRODUCT. AND THEN AND THEN YOU HAVE THE CDBG FUND THAT WE CAN USE SOMETIMES TO FIX SIDEWALKS TOO. AND THEN THE COST SHARE PROGRAM. BUT DO WE DO WE HAVE AN LIKE A DEDICATED PROGRAM JUST FOR SIDEWALKS? WE DON'T HAVE THAT YET, BUT IT'S SOMETHING THAT WE'RE, HAVING DISCUSSION ABOUT. AND THIS IS SOMETHING WE MIGHT DO IN THE FUTURE. LIKE CITY OF DALLAS IS DOING IT. THEY, THEY HAVE LIKE A DEDICATED SIDEWALK REPAIR PROGRAM WHERE THEY COULD, YOU KNOW, WITH ALL THE DATA WE COLLECTED, WE CAN DO THE SAME THING WITH ROADWAYS. OR LIKE THE BRIDGES, WHICH IS KIND OF A NEW ITEM TO OR ADA COMPLIANCE.

WE COULD CREATE ANOTHER PROGRAM FOR DEDICATED FOR SIDEWALK ONLY, BUT THAT DOESN'T MEAN THAT WE'RE NOT GOING TO FIX THE SIDEWALKS NOW. WE'RE GOING TO FIX THEM THROUGH THE COST SHARE PROGRAM. PART OF THE I'M P NEW PROJECTS AND ALSO, CDBG FUND. OKAY. ALL RIGHT. THANK YOU. I JUST WANT TO MAKE SURE THAT BECAUSE, YOU KNOW, WHEN I'M WHEN WE'RE THINKING IN TERMS OF THAT, I DO KNOW WITH THE COST, WITH THE ACTUAL COST SHARING PROGRAM, THERE IS DEDICATED MEETINGS THAT TALK TO THE PUBLIC ABOUT THOSE PARTICULAR ISSUES. BUT THE CITY HAS ALREADY DONE SOME ASSESSMENTS TO BE ABLE TO SAY, OKAY, WE KNOW WE'RE GOING TO HAVE THESE MANY COMING TYPE OF THING. SO YOU WOULD HAVE A LINE ITEM FOR IT. SO THANK YOU. YES, MA'AM.

APPRECIATE THAT. YES, MA'AM. COUNSELOR. AND THEN THEN THERE ARE OTHER TIMES WHEN WE DO THE, IF WE DO A WATER AND SEWER PROJECT THAT WE GO IN AND HAVE TO, WE HAVE TO TEAR OUT THE ROADWAY, THEN THAT THAT'S ALSO AN OPPORTUNITY FOR US TO, TAKE CARE OF SIDEWALKS AS WELL WHEN WE DO THAT. BUT THAT WON'T NECESSARILY COME OUT OF THE INFRASTRUCTURE. OKAY. NO, NO.

SO THAT'S A WHOLE DIFFERENT BUDGET THOUGH. DIFFERENT, RIGHT? I'M SAYING THAT'S, THAT'S AN ADDITIONAL OPPORTUNITY AS WELL. YES. GOOD DEAL. YEAH. AND I DO, TO MY COLLEAGUE'S POINT ABOUT

[02:20:02]

YOU CAN CONTINUE. THANK YOU. MAYOR, AT THIS TIME, I'M GOING TO GIVE OUR BUDGET ADMINISTRATOR, ASHLEY BLANTON, AN OPPORTUNITY TO WALK YOU THROUGH SOME OF THE REMAINING SLIDES. GOOD MORNING, MAYOR AND COUNCIL.

MR. GOOD MORNING. I'LL GO OVER THE DESOTO DEVELOPMENT CORP. THIS IS A SLIDE WE PULLED FROM THEIR RECENT, RETREAT. IT JUST SHOWS THEIR ASSETS PLUS RESOURCES AND REAL MOMENTUM.

THIS IS ALSO A SLIDE THAT WE INCLUDED FROM THE, THE RETREAT, THE GOVERNANCE TRUST AND NARRATIVE. THIS SHOWS THEIR OPERATIONS FOR FY 2027 THERE, THERE ARE NO CHANGES, BETWEEN 27 AND 26 EXCEPT FOR THEIR REVENUE. THERE'S AN INCREASE IN SALES TAX THAT WE'VE INCLUDED HERE. IT'S JUST A SLIDE OF OUR SPECIAL REVENUE FUNDS AND WHAT THOSE INCLUDE, REVENUES AND EXPENDITURES THAT ARE GENERATED FOR SPECIFIC PURPOSES FOR SPECIAL FUNDS. A SLIDE OF OUR OTHER FUNDS, VEHICLE AND EQUIPMENT REPLACEMENT FUNDS. THIS ONE, THIS SHOWS OUR PARKS AND RECREATION OPERATIONS. THE FIRST CHART ON THE LEFT SHOWS THE PROJECTIONS AT THE WINTER COUNCIL RETREAT. AND THEN THE SECOND SLIDE ON THE RIGHT SHOWS THE CURRENT PROJECTIONS FOR THE PARKS AND RECREATION DEPARTMENT. WE JUST WANTED TO INCLUDE THESE COUNCIL TO JUST SHOW THE LATEST OFFICIAL COMMUNICATION THAT WE GOT FROM THE PARKS DEPARTMENT WAS AT THE RETREAT AS FAR AS, THE BOTTOM LINE. SO IF YOU LOOK AT THE NET REVENUE LINE, THAT'S THE LINE THAT, WE WANT TO PULL FOCUS TO, TO SHOW THE GRADUAL DECREASE IN THE DEFICIT, YOU KNOW, SO OF COURSE YOUR FIRST YEAR IS GOING TO BE YOUR MOST DIFFICULT. WE'RE TRYING TO BALANCE EVERYTHING OUT. SO YEAR ONE, AND THEN MOVING INTO YEAR TWO, THAT DECREASE FROM 800,000 TO 600,000 IN YEAR THREE, YEAR FOUR. SO BY YEAR FIVE, AT THAT TIME, WE WERE LOOKING AT 378,000. WE EXPECT FOR THIS MODEL TO BE ABOUT SOMETHING LIKE THIS. WHENEVER WE FINISH WITH THE FORENSIC PRO FORMA, MAYBE NOT THESE EXACT NUMBERS BECAUSE WE STILL NEED TO TO WASH OUT PROGRAMING, RIGHT? THAT'S WHAT IT ALL TIES BACK TO. WE CAN LOOK AT THIS CHART AND SAY, OKAY, WE PROJECT X AMOUNT OF REVENUE, BUT WHAT THE PROFORMA WILL DO FOR US IS LET US TIE SPECIFIC PROGRAMS TO SPECIFIC COSTS. HOW MANY BASKETBALL TOURNAMENTS WILL WE HAVE? WHAT AGENCIES ARE WE

[02:25:07]

SO THIS FOR THAT. YES. THEIR THEIR TOTAL EXPENDITURES IS ON THE SLIDE THAT LISTS ALL THE DEPARTMENTAL EXPENDITURES FOR FY 27. YEAH. SO THAT'S HOW I KNOW THIS ONE IS SPECIFICALLY FOR THE AAC, BECAUSE I KNOW THEY NORMALLY SPEND ABOUT 9 MILLION A YEAR. SO YEAH, SO WE WANTED TO BRING THAT FORWARD JUST AS A REMINDER THERE. AND ALSO, AS A REMINDER TOO THAT WHEN WE DO PRESENT FINANCIALS MOVING FORWARD FOR THE AAC, WE WILL SEPARATE THE AAC REVENUE OUT FROM OTHER PARKS REVENUE AND WILL SEPARATE AAC EXPENDITURES OUT FROM OTHER PARKS EXPENDITURES AS WELL. OKAY. AND THEN ON THE ON THE OTHER SIDE, THE QUESTION ABOUT THE PERSONNEL, IT SHOWS THAT IT'S GOING DOWN IN, IN 2027, ARE WE SAYING WE'RE GOING DOWN IN PERSONNEL FOR THE AAC? THAT THAT IS THE PROJECTION THAT I GOT FROM THE FROM THE PARK STAFF. THAT'S THE LAST SET OF INFORMATION I GOT FROM THE PARK STAFF. OKAY. SO OKAY, I YIELD BACK. I MEAN, THAT'S A LITTLE INTERESTING. THE ONLY REASON I'M ASKING THAT QUESTION, BECAUSE IF WE'RE INCLUDING THE THOUGHT OF ALL OF THE PROGRAMING THAT'S NEEDED IN ORDER TO ENCAPSULATE THAT, THAT MONIES THAT WE'RE THAT REVENUE THAT WE'RE TRYING TO GET IN.

RIGHT. YOU WOULDN'T REDUCE STAFF IN THAT PARTICULAR INSTANCE, BUT I'M JUST LOOKING AT THIS AND THIS IS THE ACTUAL NUMBER. THE 263 IS THE NUMBER SAYING THAT'S THE STAFF PERSONNEL COMPLETELY FOR THE AAC. CORRECT. THAT'S WHAT WE THAT'S WHAT WE HAVE SO FAR BACK.

OKAY. I WANT TO BRING IT HOME. SO THIS IS JUST AN OVERVIEW. OVERVIEW OF OUR WORKING FY 2027 BUDGET. FY 20. THE FY PROJECTED BEGINNING FUND BALANCE IS THE 32.1 MILLION TOTAL REVENUE, 74.3 MILLION BUDGETED EXPENDITURES ARE AT 74 MILLION. AND THEN THAT SHOWS GIVES US A PROJECTED SURPLUS OF 299,831. ALSO PRESENTED ARE THE BUDGET ASSUMPTIONS. WE PRESENTED THE NEW POSITIONS AND RECLASSIFICATIONS, AS WELL AS DEPARTMENT HIGHLIGHTS. THIS ALSO INCLUDES THE 3%, HEALTH CARE INCREASE, THE CITY'S PORTION AND REVENUE AND EXPENDITURE ESTIMATES AS OF JULY 27TH, 2026. AND NEXT STEPS. THIS IS OUR TIMELINE MOVING

[02:30:10]

[02:35:02]

I'M SORRY. 35,000, 35,000. HAS THERE EVER BEEN ONE DONE? NOT SINCE MY TENURE. YEAH. OKAY.

THANK YOU. COUNCIL. ARE THERE ANY QUESTIONS? WE'LL LOOK AT THE TIME. IT'S 11:05 A.M. WE DON'T KNOW WHAT TO DO WITH OURSELVES WITH ALL THIS EXTRA TIME WE HAVE TODAY. I BELIEVE I DID SEE. WHAT'S THAT? OH, I SEE THE SECRETARY KNOWS WHY I'M SAYING THIS. I BELIEVE THAT LUNCH. I DID SEE LUNCH COMING IN, BUT I'M NOT SURE IF IT'S READY YET. HOWEVER, IF THERE ARE NO OTHER QUESTIONS, COMMENTS OR CONCERNS, COUNCIL, I WILL ENTERTAIN A MOTION TO.

WELL, LET ME, LET ME JUST SAY THANK YOU TO OUR FINANCE. YES, YES. I WANT TO MENTION ONE THING, IN CASE ANY CITIZENS WERE JUST JOINING US, WE WANT TO HIGHLIGHT THE CHAT BOT ON THE WEBSITE SO YOU CAN DEFINITELY INTERACT WITH US. GO ON THE BUDGET PAGE, YOU CAN SUBMIT A QUESTION AND WE WILL ANSWER THE QUESTION, EVERY QUESTION THAT WAS ASKED HERE TODAY, WE'VE MADE NOTES ON THAT AND WE WILL ANSWER THOSE ON THE WEBSITE AS WELL. SO DEFINITELY VISIT OUR Q&A ON THE WEBSITE. THE CHAT BOT IS ON THE BUDGET PAGE ON OUR WEBSITE. MAYOR, I HAVE A QUICK QUESTION. OKAY. WE'LL DO A LITTLE OH, I NEEDED, MISS SUTTON. SORRY. IF, KAREN IS DOING THAT, I HAD A QUESTION ABOUT, ONE OF THE SLIDES, THE PRESENTATION REGARDING, VEHICLE REPLACEMENTS. I WAS JUST CURIOUS FOR THE FIRE DEPARTMENT AND THE POLICE DEPARTMENT. HOW ARE WE AS FAR AS FUNDING TO MAKE SURE THEY HAVE THE EQUIPMENT THAT THEY NEED? PERHAPS BOTH CHIEFS CAN COME UP AND GIVE A STATUS OF. MAYBE YOU CAN GIVE AN UPDATE ON THAT.

SURE. WE ENSURE THAT, THAT, THAT FUND, KEEPS MONEY IN IT EACH YEAR WE MAKE TRANSFERS OUT OF THE GENERAL FUND TO GO TO, TO FINANCE FUTURE VEHICLES. IF EITHER CHIEF WANT TO COME UP AND SPEAK. SURE. SO WITH THE FIRE DEPARTMENT, IT IS A CHALLENGE ON OUR VEHICLES BECAUSE IT TAKES 2 TO 3 YEARS TO BUILD THE VEHICLES THAT WE NEED. SO WE HAVE TO LOOK AHEAD.

WE HAVE TO KNOW, THROUGH THE REPLACEMENT PROGRAM THAT MISS SUTTON JUST TALKED ABOUT, WE KNOW WHEN OUR VEHICLES ARE SUPPOSED TO BE REPLACED, SO WE HAVE TO LOOK AHEAD AND WE HAVE TO ORDER THEM 2 OR 3 YEARS IN ADVANCE. A LOT OF TIMES YOU'LL SEE US COME TO YOU GUYS AND ASK FOR YOUR APPROVAL TO GO AHEAD AND ORDER, EVEN THOUGH IT'S NOT IN THE BUDGET YET BECAUSE IT'S 2 OR 3 YEARS. IN THE FUTURE, WE'VE JUST GOT TO GET THE BUILD PROCESS STARTED. SO WE DO HAVE TWO AMBULANCES, THAT WE ORDERED THREE YEARS AGO THAT WE'RE HOPING TO GET AROUND CHRISTMAS OF THIS YEAR. WE ALSO ORDERED A NEW LADDER TRUCK LAST YEAR TO REPLACE OUR CURRENT LADDER TRUCK, BUT WE WON'T SEE THAT ONE UNTIL HOPEFULLY SOMETIME IN 2028. AND THAT'S WHERE WE'RE AT.

ON FIRE APPARATUS. FIRE ENGINES WILL BE DUE TO START REPLACING THOSE IN 2030, 2031. THOSE WILL COME UP DUE AND WE'LL, BUT WE'LL HAVE TO START ORDERING THOSE AROUND 2028, TO, TO STAY AHEAD OF THE CURVE SINCE IT TAKES SO LONG TO GET THOSE BUILT. COUNCILWOMAN, I WANT TO MENTION, FUNDS FOR THOSE ARE SET ASIDE SO WE KNOW WHAT'S COMING UP. AND EVERY YEAR WE DO TRANSFERS TO THE VEHICLE REPLACEMENT FUND TO SAVE UP FOR THOSE TIMES THAT WE NEED TO MAKE THOSE MAJOR PURCHASES. I APPRECIATE YOU VERY MUCH TO MAKE SURE WE HAVE OUR PUBLIC SAFETY AND THAT YOU ALL HAVE THE EQUIPMENT THAT YOU NEED TO KEEP OUR CITIZENS SAFE AND RESPOND TO EMERGENCY RESPONSES. SO THANK YOU. YEAH. COMPARED TO OTHER CITIES, WE HAVE ONE OF THE MOST ROBUST EQUIPMENT REPLACEMENT PROGRAMS THAT'S PUT IN PLACE YEARS AGO. IT IS VERY, VERY GOOD. AND IT KEEPS US IN IN GOOD EQUIPMENT AND FUNCTIONING EQUIPMENT. OKAY.

THANK YOU SO MUCH, CHIEF COSTA. FOR THE RECORD, CHIEF SUTHERLAND, I DID NOT PLAN TO DRESS ALIKE TODAY. WELL, YOU SAID WE HAD SOME GREAT MINDS THINK ALIKE, THOUGH. WE GOT SOME TIME BEFORE LUNCH, SO IT'LL BE REAL QUICK. THANK YOU, CHIEF COSTA. COULD YOU ALSO PROVIDE AN UPDATE FOR THE DEPARTMENT? HOW VEHICLE EQUIPMENT IS COMING ALONG? SO THE SAME SAME WAY THAT CHIEF SOUTHERN SAID THAT, WE WE LOOK AHEAD, WE SEE WHAT WE'RE, WHAT IS GETTING OLD? WHAT'S DAMAGED WITHOUT BEYOND REPAIR. AND THEN WE TRY TO ADJUST, WHAT WE'RE

[02:40:06]

BUT THANK YOU FOR BRINGING THAT ADDITIONAL INFORMATION. THANK YOU. OKAY. SO BEFORE I GO, I'M GOING TO LET THE CITY INTERIM CITY MANAGER RESPOND. OKAY. SO, COUNCIL, AND I THANK YOU, CHIEF, FOR BRINGING THAT UP. SO WHAT THIS IS WHAT I'D LIKE TO PROPOSE, I GUESS. COUNCIL, OBVIOUSLY, YOU KNOW, THE CHIEF MENTIONED THAT HE HAD A CONVERSATION WITH THE PREVIOUS CITY MANAGER. AND I DIDN'T HAVE A, YOU KNOW, I WASN'T INVOLVED IN THAT, THAT CONVERSATION. SO WHAT I'D LIKE TO DO IS PROPOSE THAT A COUPLE OF THINGS, YOU KNOW, WE TALKED ABOUT THE CULTURAL ASSESSMENT THAT, COUNCIL HAS ASKED US TO, TO TAKE A LOOK AT ACTUALLY SECOND, THE SECOND PHASE BECAUSE WE HAD PHASE ONE. SO WE NEED TO GET THE PHASE, PHASE TWO DONE. SO MY RECOMMENDATION IS FOR IN TERMS OF BEFORE WE CONSIDER ANY, YOU KNOW, PAY INCREASES, LET'S, LET'S GET THE CULTURAL ASSESSMENT DONE. BUT IN TERMS OF RETENTION BONUSES THAT CHIEF MENTIONED, THAT'S NOT NECESSARILY TIED TO BECAUSE CHIEF MENTIONED THAT IT COULD BE DONE THROUGH SAVINGS FROM 2026 VACANCIES. SO THAT'S NOT NECESSARILY TIED TO THE 2027

[02:45:06]

OKAY. RIGHT. AND THEN COME BACK WITH A RECOMMENDATION. ALL RIGHT. THANK YOU. IF I CAN, I CAN ANSWER THAT. YES. THERE WAS A BONUS GIVEN TO ALL THE POLICE OFFICERS BACK WHEN TARRON RICHARDSON WAS RICHARDSON WAS HERE. AND HE DREW THAT FROM THAT, THAT EXCESS, I BELIEVE IT WAS LIKE $1,000 EACH PERSON AND DUNCANVILLE DOES IT, THEY'VE DONE IT FOR THE PAST COUPLE OF YEARS. SO IT'S SOMETHING THAT CAN BE DONE. AND WE HAVE DONE IN THE PAST. OKAY. I LOOK FORWARD TO THAT, THAT RESPONSE OR THAT REPORT AND EVERYTHING. MY QUESTION WAS AROUND, FIRST THE VEHICLE, SITUATION, THE, THE STUDY ITSELF IS GOING TO BE VEHICLES COMPREHENSIVELY. EVERY VEHICLE THAT SITS IN THE CITY OF DESOTO. OR IS IT JUST FOR THE ONES THAT FOR DEVELOPMENT SERVICES PART, YOU KNOW, WHAT DOES THAT VEHICLE STUDY INCLUDE? ALL VEHICLES. OKAY. SO EVERYTHING THAT THE POLICE DEPARTMENT USES, EVERYTHING THAT THE FIRE DEPARTMENT USES, ALL OF THOSE WILL BE ENCOMPASSED IN THERE TO SEE WHETHER THEIR PURCHASES WILL NEED TO BE HAD AND THAT SORT OF THING. YES. OKAY. AND THEN MY OTHER MY OTHER JUST STATEMENT IS, I'M NOT SURE WHY WE WEREN'T REALLY SEEING OUR PRAISES ON THIS. I JUST WANT TO MAKE CERTAIN THAT PEOPLE KNOW ON THIS WEBSITE, AS YOU GO THROUGH WHAT YOU'RE ABOUT TO GO THROUGH, I DO WANT TO MAKE CERTAIN THAT AND I'M ASKING WHY WE HAVEN'T REALLY, YOU KNOW, SHOUTED TO THE ROOFTOPS THAT THERE IS A BUILT IN, INCLUSIVITY FOR EVERY LANGUAGE, EVERYBODY THAT'S SITTING IN THE CITY OF DESOTO. I WANT TO MAKE CERTAIN, IF THERE'S A POSSIBILITY THAT WE CAN DO A VIDEO OR SOMETHING AT SOME POINT TO MAKE CERTAIN THAT PEOPLE CAN GO ON THIS WEBSITE AND UTILIZE IT IN THEIR LANGUAGE AND BE ABLE TO GET SOME OF THE SAME INFORMATION.

SO JUST AS YOU'RE TALKING ABOUT THE CHAT BOT, I WANT TO MAKE CERTAIN THAT THEY KNOW ABOUT THE ACTUAL LANGUAGE, OPTION AS WELL. THANK YOU. I YIELD BACK WHAT WE'VE SET UP ON THE WEBSITE FOR THE QUESTIONS ABOUT THE BUDGET RIGHT NOW IS A STATIC FORM. WE'LL TALK ABOUT THE CHAT BOT IN A MINUTE, BUT IF IT'S WHERE IT SAYS SUBMIT QUESTIONS HERE ABOUT THE UPCOMING BUDGET, YOU CAN GO IN HERE AND YOU CAN SUBMIT THESE FORM AND THIS WILL EMAIL DIRECTLY TO MISS SUTTON AND MISS BLANTON AND I THINK MISS PATTON AS WELL. BUT THE AND THEN YOU CAN GO HERE TO VIEW THOSE QUESTIONS AND ANSWERS. JUST A SECOND. THERE IT GOES.

IF YOU, TALK TO THE CHAT BOT ITSELF, IT'S NOT GOING TO KNOW. WE CAN'T, WE CAN'T REALLY ANTICIPATE WHAT PEOPLE MIGHT ASK. SO IT'S VERY LIKELY IF YOU ASK IT A QUESTION, IT'S GOING TO SAY, I'M HAVING TROUBLE FINDING AN ANSWER. BUT WE CAN SEE THOSE QUESTIONS ON THE BACK END AND WE CAN ADD THEM TO THE Q AND A. SO I DON'T WANT PEOPLE TO GO IN THERE, ASK IT SOME QUESTION ABOUT SIDEWALKS. AND IT CAN'T FIND AN ANSWER BECAUSE WE HAVEN'T TRAINED IT ON THAT.

OR THERE'S NO WAY TO ANTICIPATE WHAT PEOPLE COULD ASK IT, BUT YOU CAN ASK IT. AND IF IT SAYS IT CAN'T FIND AN ANSWER, WE SEE THAT QUESTION ON THE BACK END, AND WE CAN GO AND PUT IT IN THE Q AND A. WE CAN'T ANSWER YOU DIRECTLY FROM THE CHAT BOT UNLESS YOU IDENTIFY YOURSELF OR GIVE US SOME SORT OF EMAIL ADDRESS OR SOMETHING TO ANSWER. BUT, IT'S NOT QUITE THAT SMART RIGHT NOW. YOU'RE TALKING ABOUT THE LANGUAGE. IF YOU GO AND LOOK AT THE ACTUAL PROPOSED BUDGET HERE, AND CHOOSE THE ACCESSIBLE TRANSCRIPT VIEW. AND EVEN WITHOUT THAT, YOU CAN GO DOWN HERE ON THE SIDE AND DO TRANSLATE AND SCROLL DOWN HERE AND YOU CAN TRANSLATE IT INTO ANY LANGUAGE THAT YOU WANT. SO, IMMEDIATELY. SO THAT IS AVAILABLE FOR THE DOCUMENT. IT ALSO IS AVAILABLE FOR THE WEBSITE ITSELF. SO I'M GOING TO GO HERE TO TRANSLATE. I THINK I'M GOING TO DOWNLOAD THIS VIDEO AND SNIP IT TO FOLKS BECAUSE THERE'S A LOT OF PEOPLE ASKING THESE SAME QUESTIONS AND WE CAN, WE CAN DO SOMETHING ABOUT THAT TOO. I DIDN'T GET WITH ME AFTERWARDS AND TELL ME WHAT YOU NEED. ABSOLUTELY. YEAH. AND THEN ALSO THE FAR AS THE CHAT BOT IS CONCERNED, THE ITEMS THAT PEOPLE ARE ASKING DURING THEIR CITIZENS COMMENTS,

[02:50:03]

I YIELD BACK. AGAIN. I'LL SAY ONE MORE TIME. IT'S UNDER DEPARTMENTS DROP DOWN AND FINANCE. AND GO STRAIGHT TO THE BUDGET AND TAX INFORMATION PAGE RIGHT HERE AND SUBMIT YOUR QUESTION. RIGHT HERE WHERE IT SAYS SUBMIT QUESTIONS ABOUT THE UPCOMING BUDGET. THAT'S THE ONE THAT GOES DIRECTLY TO THE FINANCE DEPARTMENT. THANK YOU. MAYOR, I MAY JUST MENTION AND THANK YOU, CHIEF COSTA, FOR BRINGING THAT UP. PRESENTATION FORWARD AND TALKING ABOUT THE ONE TIME STIPEND AS WELL. BUT I DID WANT TO REMIND COUNCIL AS WELL THAT OUR CURRENT PAY PLAN STUDY IS ABOUT FIVE YEARS OLD. AND SO WHILE WE DO WANT TO LOOK AT DOING SOMETHING FOR PUBLIC SAFETY, WE DON'T WANT TO FORGET ABOUT THE REST OF THE WORKFORCE. THERE MAY BE AN OPPORTUNITY TO LOOK AT IT GLOBALLY ALSO. I, I HAVE KIND OF TALKED A LITTLE BIT ABOUT THE POSSIBILITY OF A STIPEND. WE HAD TALKED ABOUT THAT, BUT FOR A CIVILIAN EMPLOYEES AS WELL, BECAUSE WE HAVE ABOUT 150 EMPLOYEES WHO ARE MAXED OUT ON THEIR PAY GRADE, SO THEY WON'T GET THE INCREASE THAT, YOU KNOW, THE NEXT STEP. SO THE STEP PLAN IS IN PLACE IN JANUARY OF EACH YEAR, ELIGIBLE EMPLOYEES WILL RECEIVE THE NEXT STEP ON THEIR STEP PLAN. WELL, IF YOU'RE MAXED OUT YOU DON'T QUALIFY FOR THAT. SO WE HAVE WE HAVE A GLOBALLY ABOUT 150, 160 EMPLOYEES WHO ARE MAXED OUT. SO IF WE'RE GOING TO DO A STIPEND, WE MAY WANT TO CONSIDER GLOBALLY. AS WELL. THEY DO STILL RECEIVE COLA CORRECT. THEY DO. THEY DON'T RECEIVE THE NEXT STEP BUT THEY STILL RECEIVE. CORRECT. OKAY. THANK YOU. COUNCIL MEMBER. NO, NO, I WAS JUST GOING TO COMMENT. THAT'S GOOD TO TAKE A LOOK AT IT. OVERALL, WHAT CAN BE DONE FOR OUR STAFF. THANK YOU. I HAVE A QUESTION. AND I KNOW WE TALKED ABOUT THIS EARLIER THE FACILITIES. YOU SAID A MASTER PLAN. DOES THAT INCLUDE THE, THIS AREA HERE? BECAUSE THERE'S SOME, SOME, SOME WORK THAT NEEDS TO HAPPEN HERE. WILL THAT INCLUDE THIS PARTICULAR CHAMBERS? YES. ALL FACILITIES. YES. THANK YOU. COUNCIL AT THIS TIME, CAN WE GIVE OUR FINANCE TEAM A GREAT BIG HAND CLAP FOR. FOR ALL OF THE WORK THAT YOU ALL DO CONTINUOUSLY TO GET US HERE AND TO GIVE US, VERY THOUGHT, WELL THOUGHT OUT INFORMATION TO HELP US MAKE THE BEST DECISIONS WE CAN TOGETHER FOR OUR RESIDENTS. SO AT THIS TIME, WE HAVE NO ADDITIONAL QUESTIONS. I SEE NONE, I BELIEVE THAT'S ALL, MADAM CITY SECRETARY, THAT'S EVERYTHING.

CORRECT. AND I BELIEVE WE'RE ABOUT SEVEN MINUTES FROM 1130, BUT I BELIEVE LUNCH IS READY FOR EVERYBODY. MADAM SECRETARY, WOULD YOU LIKE TO SHARE WHERE THEY CAN GO FOR THOSE STAFF MEMBERS AND COUNCIL MEMBERS TO GRAB THEIR LUNCH TODAY? YES. IN THE ADMIN KITCHEN FOR STAFF MEMBERS, DIRECTORS AND MAYOR AND COUNCIL. THANK YOU. AT THIS TIME, COUNCIL, I'LL ENTERTAIN A MOTION TO ADJOURN. SO MOVED. SECOND, IT'S BEEN MOVED BY COUNCIL MEMBER PARKER. SECOND BY COUNCIL MEMBER NORTH TO ADJOURN COUNCIL. ALL IN FAVOR, PLEASE SAY AYE. AYE. ALL OPPOSED? SAME SIGN. THAT MOTION PASS

* This transcript was compiled from uncorrected Closed Captioning.