[1. CALL TO ORDER ] [00:00:06] >>> GOOD EVENING, LADIES AND GENTLEMEN, TODAY IS MONDAY, AUGUST 11, 2025. IT IS 6:45 P.M. AND QUORUM PRESENT IN THE CITY COUNCIL CHAMBERS, PRIOR TO THE GINNING OF EACH MEETING WE WITH GIN IN CONDUCTING TODAY'S INVOCATION IS MR. REAVES. PLEASE STAND WITH ME. >> DEAR LORD, WE THANK YOU FOR THE OPPORTUNITY TO COME BEFORE YOU AND ASK FOR WISDOM, LORD. WE KNOW, AS YOUR WORD SAYS, WHEN ASK AND YOU SHALL RECEIVE, AND THAT YOU LOVE TO GIVE WISDOM. WE PRAY FOR WISDOM, I THANK YOU FOR EVERY MEMBER OF CITY STAFF HERE THAT WORKS TIRELESSLY FOR THE RESIDENTS, LORD. I PRAY FOR YOUR BLESSING UPON THEM, LORD, AND FOR EVERY RESIDENT IN THE CITY, WHERE THERE IS LACK, LORDURIC PRAY YOU BRING SURPLUS, WHERE THERE IS OFFENSE I PRAY YOU BRING FORGIVENESS. WHERE THERE IS DESPERATION I ASK THAT YOU BRING HOPE Y. PRAY YOU MEET EVERY NEED IN THE CITY, LORD. I JUST THANK YOU, FATHER, THAT YOU LOVE US, AND THAT YOU ARE HERE FOR US. IN JESUS' NAME WE PRAY, AMEN. >> THANK YOU. >> INVITE YOU TO JOIN IN THE PLEDGES OF ALLEGIANCE. I PLEDGE ALLEGIANCE TO THE FLAGOF THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION, UNDER GOD, WITH LIBERTY AND JUSTICE FOR ALL. >> HONOR THE TEXAS FLAG, I PLEDGE ALLEGIANCE TO THEE, TEXAS, ONE STATE UNDER GOD, ONE AND INDIVISIBLE. >> THANK YOU, YOU MAY BE SEATED. [4A. Presentation of the Fiscal Year 2026 (FY2026) proposed Budget.] >>> IT IS 6:46 P.M., WE WILL CALL THE MEETING TO ORDER. THE FIRST ITEM OF BUSINESS IS PRESENTATIONS. ITEM 4A, PRESENTATION OF THE FISCAL YEAR 2026 PROPOSED BUDGET. CITY MANAGER, MR. DAVID HALL. >> GOOD EVENING, MAYOR AND COUNCIL. SO, IT IS REALLY AN HONOR TO BE ABLE TO PRESENT A BUDGET TO A CITY COUNCIL. IT IS ONE OF THE MOST IMPORTANT THINGS THAT YOU GET TO DO AS A CITY MANAGER. YOU ALLOW ME TO ADMINISTER YOUR RESOURCES, PRETTY SIGNIFICANT. AS YOU KNOW, THIS IS A REQUIREMENT OF OUR CITY CHARTER THAT I PRESENT TO YOU. IT DOESN'T SPECIFY WHAT PRESENT MEANS BUT SINCE I HAVE BEEN YOUR CITY MANAGER I THOUGHT IT WAS IMPORTANT WE GET SOME REPRESENTATIVE RECORD OF ME FULFILLING THE OBLIGATION AND YOU RECEIVING THE BUDGET PRIOR TO YOUR OFFICIAL ADOPTION. SO AS WE MOVE INTO ME OFFICIALLY PRESENTING THE BUDGET, WHAT YOU HAVE SEEN IN WORKSHOP NUMEROUS TIMES T IS OBVIOUSLY VERY IMPORTANT TO THANK THE PEOPLE THAT REALLY DO THE WORK. THAT IS, OF COURSE, THE FINANCE TEAM. WENDY, TERA, ALLISON, ALL OF THOSE FOLKS, MICHAEL, MARTINA, WITH THE BUDGET, THAT WHOLE TEAM KICKS IN FROM KIM AND BRANDY AND CHRIS AND, I COULD NAME ALMOST THE WHOLE TEAM BECAUSE ALL OF THEM GET INVOLVED IN THIS PROCESS, AND THEY WORK TIRELESS HOURS TO DEVELOP THIS BUDGET, DEVELOPED ACROSS MANY, MANY MONTHS, WITH MANY, MANY MEETINGS, AND GRATITUDE FOR TO THE DEPARTMENT DIRECTORS AND THEIR STAFF, WHO, AS WE HAVE GONE THROUGH, THIS IS MY THIRD BUDGET, WE CONTINUE TO ASK FOR MORE INFORMATION, MORE ANALYSIS, WE ARE NOT DONE. THIS IS JUST ANOTHER STEP IN EVOLUTION AND HOW WE WANT TO CRAFT THIS BUDGET TO MEET WHAT YOU NEED. BUT, OF COURSE, WE WANT TO THANK EVERYBODY, OF COURSE, THE ASSISTANT, DEPUTY CITY MANAGE, THIS IS REALLY A VERY MUCH A TEAM EFFORT AND EVERYONE IS INVOLVED IN DEVELOPING THE BUDGET. WE WILL PRESENT IT TO YOU, FOR YOUR FEEDBACK. OF COURSE, OBVIOUSLY YOU GUIDE WHERE WE TRY TO TAKE THIS BUDGET. THE COUNCIL SETS THE VISION FOR THE CITY, AND WE HOPE THAT WE ARE HITTING THE MARK IN TERMS OF WHERE WE ARE GOING AND WHERE YOU ASK US TO GO. SO EVERY BUDGET, EVERY CITY HAS CHALLENGES. OURS, OUR CHALLENGES ARE NOT MUCH DIFFERENT THAN MOST CITIES IN THE MET REPLEX RIGHT KEEPING PACE WITH OUR GROWTH, WE CONTINUE TO GROW, CAPITAL BUDGET REFLECTS OUR ATTENTION TO THAT. AS WE TALKED UTILITY RATES, BOTH WATER, SEWER, AND, REALLY, YOU COULD OFFER REFUSE AS UTILITY, CONTINUE TO RISE IN COSTS, AND IT IS CHALLENGING BECAUSE YOU ARE THEN FACED FROM A POLICY PERSPECTIVE WHAT TO DO WITH THOSE COSTS. SO, AS WE CRAFTED THIS BUDGET, WE HAVE TRIED TO ADDRESS THEM, AS YOU KNOW, IN HERE. SO, OBVIOUSLY A KEY DRIVER [00:05:02] FOR OUR BUDGET, TAXES. YOU CAN SEE THE BASISS FOR THE TOTAL TWO PARTS, IMINAL RATE AND INS RATE. WE ARE PROPOSING IMINAL 5.88431, 75% OF SALES OF A PENNY. THAT YOU AUTHORIZED US TO PUT HERE. I WILL POINT OUT THE INS, INTEREST SINKING, FORGIVE MY SINUSES, OUR DEBT, THAT IS THE RATE THAT WE SPOKE TO YOU ABOUT GOING BACK TO DECEMBER OF 2023 THAT WAS THE TARGETED RATE BASED ON THE MAY 2023 ELECTION AS THE APPROVED RATE. THERE HAVE BEEN A LOT OF CONVERSATION S ABOUT THE DEBT THAT WE ARE ISSUING, AND THE WAY IN WHICH WE RESTRUCTURED DEBT. AGAIN, YOU SEE THAT WAS THE RATE AUTHORIZED BY THE VOTERS, THAT IS THE RATE WE ARE STAYING UNDER, ACTUALLY LITTLE BIT SHY OF. SO, WE ARE GOING TO PROPOSE BASIS OF THE BUDGET CRAFTED ON A 0.8091 CENT PER $1,000 EVALUATION TAX RATE. SO, MAJOR INITIATIVES, I WON'T READ THEM ALL. YOU HAVE SEEN THIS BEFORE. POINT OUT THERE ARE SEVEN FTES YOU AUTHORIZED US, OR ALLOWED US TO PROPOSE TO YOU. WE PROPOSED $8.5 LAST YEAR, I WILL MAKE THIS POINT. I THINK IT IS IMPORTANT FOR THE RECORD, LAST YEAR YOU APPROVED 8 AND A HALF POSITIONS, 5 AND A HALF WERE POLICE PUBLIC SAFETY. IF YOU LOOK HERE OF THE SEVEN, THREE OF THOSE POSITIONS ARE ALSO FOR POLICE, SO I THINK THAT AT TIMES THERE IS A LOT OF NOISE IN THE WORLD ABOUT THE NEED TO SUPPORT AND WE MAYBE AREN'T DOING THAT. I THINK THE RECORD IS ACTUALLY REALLY EXCEEDINGLY CLEAR. WITH RESPECT TO THAT, YOU SEE THE COMPENSATION FOR FIRE POSITIONS. WHAT IS NOT ON HERE, BUT WILL BE IN FINAL BUDGET, DUE TO TABULAR ERROR $100,000 ENHANCEMENT FOR VEHICULAR MAINTENANCE ON THE FIRE DEPARTMENT. SO, THE CITY HAS INVESTED SIGNIFICANTLY IN ITS PUBLIC SAFETY, THE BACKBONE OF MOST LOCAL GOVERNMENT SERVICES, BUT YOU CAN SEE WE ALSO TRIED TO DO ENHANCEMENTS TO ROUND OUT OUR SERVICES BECAUSE IT IS IMPORTANT. 14 PASSENGER VAN AND EQUIPMENT FOR THE RCC, ENHANCED SURVEILLANCE AND SOFTWARE FOR OTHER DEPARTMENTS. WE HAVE TALKED ABOUT THESE THINGS BUT FOR THE RECORD, WE PRESENT IT TO YOU. SO, OUR GENERAL FUND, WE ARE PROPOSING TO BEGIN WITH $34 MILLION IN RESERVES. I WILL LET THAT SINK IN FOR A MINUTE BUT I WILL TAKE YOU BACK A FEW YEARS WHERE YOU WERE PROPOSING TO BEGIN WITH $12 MILLION IN RESERVES, JUST A COUPLE OF YEARS AGO. OVER LAST YEAR WHERE WE WERE BEGINNING WITH $21 MILLION IN RESERVES. WHEN PEOPLE ASK HOW YOU ARE DOING, THERE ARE FINANCIAL CHALLENGES. NO CITY EVER HAS ENOUGH MONEY AND WE ARE NO EXCEPTION WITH RESPECT TO THAT, BUT I THINK IT GETS LOST IN ALL OF THE NOISE. WE SAID WE WOULD RESTORE THE CITY TO FINANCIAL HEALTH. I THINK THERE IS NO ARGUMENT IT IS BEING DONE AND IT HAS TO GO TO DIRECTORS AND STAFF FINANCE, KRISTOF, EVERYBODY WHO HELPED US, YOU KNOW, MOVE TOWARDS WHERE WE SAID WE WANTED TO GO. IT WAS A SIGNIFICANT SHIFT. I POINT THIS OUT MORE FREQUENTLY THAN I USED TO. THERE IS A LOT OF CONVERSATION ABOUT THE LEAP FORWARD YOU TOOK. WHEN I BECAME CITY MANAGER, THAT WE WERE FACING FINANCIAL CHALLENGES AND I SAID TO YOU, THERE ARE WAYS WE CAN DO THIS FROM LOOKING AT HOW YOU DO OUR DEBT AND OTHER THINGS. YOU HAD TO TAKE A LEAP OF FAITH TO BELIEVE IN THE INFORMATION AND WHAT WE WERE PRESENTING TO YOU. BUT THE RESULTERIZE MANIFEST IN FORMS OF MILLIONS AND MILLIONS OF DOLLARS. I GO BACK TO THAT TAX RATE BECAUSE IT IS STILL UNDER THE RADAR, WHICH THE VOTERS APPROVED. AT THE SAME TIME, WE HAVE ADDED, WHAT? $20 MILLION ULTIMATELY? IN THE LAST TWO-PLUS YEARS RESERVE FUND. WHATEVER ANYONE THINKS ABOUT DEBT AND THAT IS ALL POLICY STUFF. MY JOB IS TO KEEP YOU WHERE THE VOTER SAID WE COULD GO AT MOST AND TO FULFILL WHAT I SAID WE WOULD DO WITH RESPECT TO RESTORING SOME DEGREE OF FINANCIAL STABILITY TO THE CITY. I THINK YOU SEE IT THERE. YOUR GENERAL FUND NOW HAS BEGINNING RESERVE PROPOSING FIXAL YEAR 2026 $34 MILLION, BALANCED AGAINST REVENUE PROJECTED $70. JUST SHY OF $71 MILLION. EXPENSES JUST SHORT OF $70 MILLION. JUST LITTLE OVER $70 MILLION. NET CHANGE, ADDING TO FUND BALANCE $335,000, NOT A SIGNIFICANT ADDITION, BUT LOT OF CITIES AND TIMES YOU BUDGET NET ZERO OR DEFICIT. WE STILL HAVE TO RESPECT AND APPRECIATE YOU ALLOWED US TO HAVE SURPLUS TO THE FUND BALANCE. WE PUT AT THE BOTTOM THE FINANCIAL IMPACT, WE WANT YOU TO SEE THAT OF THAT NET CHANGE IT IS COMPOSED OF ONE-TIME $300,000, AND FUNDS [00:10:05] ONGOING $34 MILLION. $34,000, I AM STUCK ON $34 MILLION, APPARENTLY. FOCUSING ON THE GENERAL FUND. YOU CAN LOOK TO THE RIGHT, THOSE ARE SIGNIFICANT DRIVERS OR REASONS WHY YOU SEE THE CHANGE. PROPOSING $70 MILLION IN REVENUE. UNLESS ANYONE THINK THE REVENUE HAVE FALLEN, THEY HAVEN'T. WE TALKED ABOUT THIS, A LOT WAS WHERE WE HAD CHANGES AND TRANSFERS WE ARE NOT DOING THIS YEAR. YOU CAN SEE 3% TAXABLE VALUE OVER 25 CERTIFIED VALUSE, IN 2024 THE RATE OF GROWTH WAS MUCH HIGHER, 24 TO 25 WE GREW 10%, FROM 25 TO 26, WE ARE GOING TO GROW 3%. I WILL PAUSE FOR A MOMENT AND REMIND EVERYBODY, WHEN THEY TALK ABOUT WHAT WE WERE DOING WITH THE DEBT AND HOW ALL OF THIS IS RELATED, WHEN WE LAID OUR DEBT PLAN WE SAID YEAR ONE NEEDED 8% GROWTH, WE ACHIEVED 10%. WE SAID YEAR TWO NEEDED 2% GROWTH AND WE ACHIEVED 3%. WE ARE NOT ONLY ON COURSE, WE ARE A LITTLE AHEAD, THANKFULLY. THERE IS STILL CAPACITY AND ROOM TO MEET EVERYTHING WE SAID WE WOULD DO. FRANCHISE FEES, BUILDING PERMIT, I THINK IT IS OBVIOUS WHEN YOU LOOK AT THE RATE ENVIRONMENT IN GENERAL, ENVIRONMENT WITH RESPECT TOOB HOUSING STOCK THAT THERE IS A SLOW DOWN IN SOME LICENSING AND PERMITTING. WE HAVE TRIED TO BUDGET VERY CONSERVATIVELY THERE. WE BUDGETED CONSERVATIVELY WITH RESPECT TO SALES TAX. WE ARE SHOWING 2% INCREASE OVER THE PRIOR YEAR'S BUDGET. LAST YEAR WE BUDGETED 4% OVER PROJECTIONS. SO, AGAIN, WE ARE BEING ULTRACONSERVATIVE IN HOW WE ARE PLANNING AND LAYING OUT THIS BUDGET. CHARGES FOR SERVICES INCREASED THANKS TO CHIEF DENNING, WE WERE ABLE TO-- AND DR. LOPEZ, HAD MEETINGS AND THEY WERE AMENABLE TO INCREASING THE AMOUNT OF CONTRIBUTION TO THE SRO PROGRAM UNDER CONTRACT. WET ZONE OBVIOUSLY, WE ARE SHOWING THAT NOW ONLINE AS REVENUE GENERATOR FOR US. WE MAY HAVE TO COME BACK AND TALK ABOUT THIS, YOU DID ALLOW US TO CHANGE SOME FEES. AS WE ARE ESTABLISHING, NOT INCREASING THIS SIGNIFICANTLY IN THE BUDGET, BUT I THINK ONGOING CONVERSATION WITH RESPECT TO HOW THAT UNIT OPERATES. THE PILOT AGREEMENT, SOMETHING WHEN YOU LOOK UNDER OTHER REVENUES, WE HAVE TWO PILOT AGREEMENT THAT WILL COME ONLINE FISCAL YEAR 2026, WE HAVE 190 MAIN, AND I ALWAYS GET IT WRONG, SAVANNAH, SAVANNAH, THAT IS AS YOU JUST APPROVED RECENTLY, SCHEDULED TO COME ONLINE FISCAL YEAR 2026 TO MAKE PILOT PAYMENTS TO US. EXPENDITURES WE TALKED ABOUT THIS, I DON'T WANT TO BELABOR IT TOO MUCH BECAUSE WE TALKED ABOUT IT BUT THERE IS THE REPETITION OF THE MAJOR INITIATIVES THAT ARE HITTING THE GENERAL FUND, PROPOSED EXPENDITURES, APPROXIMATELY $70 MILLION JUST A BIT MORE THAN $70 MILLION OUT OF YOUR GENERAL FUND. LETS TALK ABOUT THE UTILITY FUND. THE UTILITY FUND HAD CHALLENGES WITH RESPECT TO RATE INCREASES FROM OUR SUPPLIERS. YOU CAN SEE SOME OF THE DRIVER S, I WILL FOCUS ON EXPENSES FIRST, WE ARE ADDING ONE EMPLOYEE WITH MERIT INCREASES, THE DISTRICT, THE WATER DISTRICT GAVE US 9% RATE INCREASE, AT LEAST AS WE WERE PROPOSING BUDGET. THEY HAVE NOW TAMPED THAT DOWN MAYBE SAYING 7% T IS NOT REFLECTED HERE, IT WILL SIMPLY BE ADDITIONAL REVENUES GOING TOWARDS THE FUND BALANCE, NOT SIGNIFICANT AMOUNT, BUT WANTED, IF YOU HAVEN'T RED THE MEMO IN YOUR PACKET, THE CITY OF GARLAND, WASTE WATER TREATMENT SUPPLIER, IS GIVING 10% INCREASE IN FISCAL YEAR 2026. I WOULD ALSO CAUTION WE EXPEND TO SEE MORE OF THOSE RATE INCREASES YEAR OVER YEAR AS THEY ARE DEALING WITH ISSUES AS WELL, AND OTHER CAPITAL PROJECTS THEY ARE TRYING TO RESOLVE. IN CONVERSATIONS WITH THEM, WE CAN PROBABLY EXPECT TO SEE SIMILAR RATE INCREASES FOR THE NEXT SEVERAL YEARS. WE ARE ALSO ISSUING DEBT, KIND OF ANNUAL $7 MILLION, ADDITIONAL $7 MILLION FOR THE WELL DISCUSSED LIBERTY GROWTH SEWER LINE FAILURE TO HELP COVER THE COST OF THAT. WHEN YOU LOOK AT THE COST, 9% INCREASE FROM THE DISTRICT, AND 10% INCREASE FROM THE CITY OF GARLAND, WE PASSED THOSE THROUGH. BUT NOT FULLY. THE FUND STILL ATE PERCENTAGE INCREASE IF YOU WILL NOTE, WE EXPECT TOTAL INCREASE ON SOMEONE USING 7500 GALLONS OF WATER FOOBE $11.51. YOU CAN SEE BEGINNING RESERVE OF $16.6 MILLION EXPECTED RESERVES OF $17.2 MILLION, SLIGHT NET CHANGE $576,000, EXPECTED FOR THIS UTILITY FUND. AGAIN, PROPOSED REVENUES OF APPROXIMATELY $42 MILLION BALANCED AGAINST 41, ALMOST $42 [00:15:05] MILLION IN EXPENSES. THE REFUSE FUND, WE DISCUSSED IT MULTIPLE TIMES DURING THE YEAR BUT I WILL FOCUS YOU TO THE EXPENSES, OUR PROVIDER INCREASED THE RATE 7% FOR ADJUSTMENT YOU MADE TOWARD QUARTER END OF CONTRACT WITH RESPECT TO ENHANCING SIGNIFICANTLY THE BRUSHABLE PICK UP SERVICES, AS WELL AS CONTRACKTURAL ANNUAL CPI INCREASE OF 5%. WE BASICALLY JUST PASSED THOSE RATE INCREASES THROUGH AND YOU WERE ABLE TO PORTION THEM OUT, RESIDENTIAL RATES WILL INCREASE 10%, COMMERCIAL RATES WILL INCREASE 11%. WE WORKSHOPPED THIS WITH YOU. I HOPE NONE OF THIS COMES AS A SURPRISE. BEGINNING RESERVE $442,000. WE EXPECT RESERVES $463,000, THAT IS BALANCING $8.3 MILLION IN REVENUES AGAINST APPROXIMATELY $8.3, LITTLE LESS, $8.437 MILLION IN EXPENSES. OUR DRAINAGE FUND, ONE OF OUR SMALLER FUNDS WE KEPT THE RATES UNCHANGED $5.50% MONTH, BASED ON EQUIVALENT RESIDENTIAL UNITS, THE BIGGEST EXPENSE OUTSIDE PERSONNEL IS MINI TRACT LOADER WITH 36 INCH BUDGET, LITTLE BIT MORE PROACTIVE DRAINAGE MAINTENANCE AND THAT WILL HELP US IN THAT ENDEAVOR. BEGINNING ARESERVES, $896,000, THAT IS HOW WE BUDGET. TYPICALLY BUDGET THAT AS NET ZERO. YOU CAN SEE EXPENSES, REVENUES $1.8 MILLION BALANCED AGAINST $1.8 MILLION IN EXPENSES. I WILL POINT OUT, WHEN YOU LOOK AT THE FUND, $1.8 MILLION IN EXPENSES, DON'T BE FOOLED. TRANSFERS OUT TO SOME OBLIGATIONS, . THIS FUND IS COVERING ITSELF BY 130%. >>> I WILL POINT SOMETHING OUT, LOOK AT EXPENSES, 10% STOP LOSS, 6% MEDICAL CLAIMS INCREASE, 5% ADMINISTRATIVE INCREASE, AS WELL WE HAVE EMPLOYEE, WE PAY MERIT INCREASES THERE AND REINSTATING GENERAL FUND TRANSFER. I PAUSED IT LAST YEAR TO KIND OF HELP THE FUND REGAIN ITS BALANCE BUT IT IS, IN TERMS OF BEING EQUITABLE IT IS ONLY APPROPRIATE THE FUND CONTRIBUTED TO G&A TRANSF WE REINSTATED THAT THIS YEAR. THOSE ARE DRIVING EXPENSES. OKAY. WHEN YOU TALK ABOUT THE REVENUE, EMPLOYER, WE ARE CONTRIBUTING 86 86% OF COST, 14% EMPLOYEE. YOU SEE EXPENSE INCREASES AND WE INCREASED THE EMPLOYEE PREMIUM 1%. SO THIS FUND IS ABSORBING THE IMPACT OF THOSE INCREASES, SO YOU CAN SEE THE FUND, THE CITY IS ABSORBING THAT INCREASE 5% OF THE INCREASE. NOW, I WILL SAY THIS BECAUSE A LOT OF THE COST, KIND OF PRELIMINARY STAGES OF ANALYSIS BUT A LOT OF COSTS WERE DRIVEN BY, PERHAPS, NOT THE BEST USAGE PATTERNS. I AM GOING TO DO A QUICK TOUR AGAINST GROUPS AND LAYING OUT THE BUDGET AND WHAT IS HAPPENING IN THE BUDGET. WE MADE THE DECISION TO EAT AND ABSORB THOSE INCREASES THROUGH THE FUND THIS YEAR. IT IS NOT GOING TO BE A SUSTAINABLE PRACTICE THAT IF USAGE ACROSS CUSTOMERS DON'T CHANGE THIS FUND WON'T BE ABLE TO ABSORB THAT. IT IS POSSIBLE NEXT YEAR YOU WILL SEE A COMPLETE SHIFT WHERE THERE IS A 1% FUND ABSORPTION AND 5% EMPLOYEE, THESE CHANGES BASED ON PRELIMINARY ANALYSIS AND REPORTS BACK FROMVENEDERS, ARE INDICATING THAT A LOT OF THESE COSTS ARE BEING DRIVEN BY, LETS JUST SAY NOT THE BEST USAGE PATTERNS OUT OF OUR CUSTOMERS. I WANT TO MAKE YOU AWARE OF THAT NOW. AGAIN, AM I GETTING A YEAR AHEAD? I AM. BUT THAT IS PART OF WHY WE HAVE THE CONVERSATION. THIS FUND BEGINNING FUND BALANCE, $3 MILLION, WE EXPECT TO END $2.8, WE ARE BUDGETING A SLIGHT NET DEFICIT LITTLE SHY OF $160-$170,000. YOU SEE PROPOSED REVENUE, $9.5 MILLION AGAINST APPROXIMATELY $9.7 IN EXPENSES. VERY HEALTHY FUND BALANCE, WHICH IS WHY IF ANYONE IS WONDERING WHY WE HAVE CHOSEN TO DIP INTO THAT FUND BALANCE. THE OTHER GOVERNMENTAL FUNDS WE HAVE, THIS IS AGGREGATE OF ALL THE FUNDS YOU SEE IN THE MIDDLE, THOSE ARE REALLY ALL PROPRIETARY FUNDS, RESTRICTED USE FUNDS, VERY SELECT USES EACH OF THOSE ARE ELIGIBLE FOR. AGAIN, YOU CAN SEE WE HAVE SEEN, AS YOU DISCUSSED IN ANOTHER VALUES INCREASED CHARGE FOR SERVICES. WE COMPLETED THE SAFER GRANT, THAT [00:20:01] IS DONE, AND WE WERE BUDGETING SOME OF THAT, FINES AND FORFEITURES, AVERAGING OUT. THE INVESTMENT MARKET WAS A LITTLE BETTER THAN WE EXPECTED. WE HAVE INCREASED THE SUBSIDY FROM GENERAL FUND, THIS IS IMPORTANT TO NOTE, FOR COURT SECURITY, CHILD SAFETY, THE CROSSING GUARDS AND TECHNOLOGY REPLACEMENTS. YOU CAN SEE SOME OF THE DRIVING EXPENSES. WE DID COMPLETE THE SAFER GRANT SO THAT IS NOT ON HERE. THERE IS PURCHASE SERVICES. THE CAPITAL OUTLAY, DRAW YOUR ATTENTION TO THAT, THE VEHICLE REPLACEMENT, BUDGETING LAST YEAR, HELD OFF FULL REPLACEMENT SKUJAL, WE WERE DOING CAPITAL STUFF, STILL DOING IT BUT BUDGETING FULL REPLACEMENT SKUJAL. WE BEGIN $8.1 MILLION, ENDING $7.3. THE FUND WE BUDGETED DEFICIT WAS THE VERVE BUT THAT IS BECAUSE WE MAINTAINED THE SURPLUS FOR THIS PURPOSE. >>> LETS GET TO ONE OF THE MORE IMPORTANT TOPICS AND WE MENTIONED THIS, OR I MENTIONED THIS WHEN WE BEGAN THE CONVERSATION TODAY IN PRESENTING THIS, OBVIOUSLY WE HAVE CHALLENGES AS EVERY CITY DOES, THAT IS GOING TO STILL MAINTAIN. SOMETHING WE BEGAN SHOWING YOU LAST YEAR, THE CITY ISSUES OR DEDICATES A SIGNIFICANT AMOUNT OF MONEY TOWARDS CAPITAL PROJECTS, BUT WHAT WE DIDN'T KNOW PRIOR O THEM WAS HOW MUCH ARE WE ROLLING OVER IN CARRYING FORWARD. IN FISCAL YEAR 2026, WE ARE PROPOSING TO CARRY FORWARD $81 MILLION. FOR THOSE OF YOU WITH REALLY GOOD MEMORIES, YOU WILL RECALL THAT LAST YEAR WE CARRIED FORWARD $71 MILLION. YOU MAY BE SAYING MY GOSH, THEY ARE NOT DOING A VERY GOOD JOB. BUT, WAIT, THERE IS MORE. SO, YOU MAY RECALL, LET ME GO BACK, BETTER YET. LET ME STAY HERE. LAST YEAR IN FISCAL YEAR 2025, THE YEAR WE ARE IN, WE WERE PROPOSAL AND WE HAVE DEDICATED APPROXIMATELY $41 MILLION TOWARDS OUR CAPITAL PROJECTS. SO, WHEN YOU COMBINE THOSE TWO, WE HAD $114 MILLION, TOGETHER, ABOUT $114 MILLION FOR CAPITAL PROJECTS, ONLY ROLLING OVER $81, WE ACTIVATED $33 MILLION IN CAPITAL FUNDS THIS YEAR. WE ARE JUST GETTING START FD. SO IT HAS BEEN A PRETTY GOOD YEAR. WE WERE GOING, WE WERE INVESTING $41 MILLION, FISCAL YEAR 2025, WE ACTIVATED $33.7 MILLION THIS YEAR. WE WILL SHOW YOU THE REST OF THE FIVE-YEAR CAPITAL IMPROVEMENT PLAN, FROM REVENUE PERSPECTIVE. FIXAL YEAR 2026 YOU CAN SEE A SIGNIFICANT AMOUNT OF CAPITAL BEING DEVOTED TOWARDS, REVENUE DEVOTED TOWARDS CAPITAL PROJECT BECAUSEER RELATE TO THE MUNICIPAL COMPLEX, $101 MILLION THIS YEAR, NEXT FIVE YEARS, TOTAL $332 MILLION, A LITTLE DIFFERENT THAN WHAT WE SHOWED YOU LAST YEAR. SO, MY POINT IN SAYING THAT IS WE WERE STAYING CONSISTENT WITH WHAT WE HAVE SAID TO YOU THAT WE WERE TRYING TO MOVE FORWARD WITH RESPECT TO CAPITAL PROJECTS. YOU WILL SEE A SLIGHT CHANGE, WON'T BE SIGNIFICANT IN TERMS OF SOME DETAILS LATER ON, BUT HERE YOU ARE WITH YOUR FULL FIVE-YEAR CAPITAL PLAN. YOU CAN SEE OUR PROJECT EXPENSES BASED ON CATEGORY, CAPITAL MAINTENANCE, PROJECT, PURCHASES, AND COMMUNITY PROGRAMS, AGAIN, WE HAVE GIVEN YOU AN EXPLANATION OF WHAT THOSE THINGS ARE. WHICH YOU MAY RECALL FROM THOSE LAST YEAR, THOSE OF YOU THAT WERE HERE. APPRECIATE YOU LOWING ME TO SHOW THE PROPOSED BUDGET TO YOU. I WILL STAND FOR QUESTIONS IF THERE ARE ANY. >> COUNCIL, WHAT QUESTIONS DO YOU HAVE FOR MR. HALL? I WILL KICK IT OFF. UM, THERE IS A PRETTY SIZABLE, WITHIN THE GENERAL FUND, PRETTY SIZABLE INCREASE IN THE VEHICLE MAINTENANCE BUDGET OF $500,000. THERE IS NO CHANGE IN HEAD COUNT. IS THAT-- WE DOO WE KNOW-- >> WHICH? VEHICLE MAINTENANCE? >> YEAH, LET ME FIND THE PAGE NUMBER AND I CAN TELL YOU. >> REFERRING TO FIRE? >> NO. WELL, IT IS WITHIN THE PUBLIC WORKS BUDGET. >> YOU ARE TALKING ABOUT VEHICLE MAINTENANCE UNDER GENERAL MAINTENANCE. >> YES. YES. IN THE 2025 BUDGET WE WENT $605,000 AND 2026 $1.1. >> WE HAVE HAD HEAD COUNT INCREASE. I DON'T WANT TO BE ARGUMENTATIVE, BUT WE INCREASED 8 AND A HALF POSITIONS LAST [00:25:01] YEAR, ADDING SEVEN AND A HALF THIS YEAR, CODE INCOURSEMENT LAST YEAR, FOUR AND A HALF, LETS SAY THREE FIELD POLICE LAST YEAR, WE ARE INCREASING HEAD COUNT BUT WE ARE ALSO TRYING TO IMPROVE HOW WE MAINTAIN OUR VEHICLES TOO. AS WELL AS WE HAVE TO FACTOR IN THE RISING COST OF EVERYTHING. >> SO, MY QUESTION, I THINK, IS THAT THERE IS, IN THAT LINE ITEM, THE VEHICLE MAINTENANCE LINE ITEM, THERE IS ALMOST 50% INCREASE. SO, WE OBVIOUSLY HAVEN'T HAD 50% INCREASE IN STAFF. >> NO. >> HELP ME UNDERSTAND THAT BECAUSE WE WENT FROM $644,000 REVISED BUDGET IN 2025 TO $1.37 MILLION IN PROPOSED BUDGET IN 2026. >> I DON'T REMEMBER ALL THE DETAILS OFFHAND, BEY CAN SURELY TELL YOU PART IS DRIVE TO TRY TO IMPROVE HOW WE ARE MAINTAINING THE VEHICLES. >> COUNCIL, THIS IS PAGE 85. SORRY. I SHOULD HAVE ANNOUNCED THAT. >> THEY CAN PULL UP THE DETAILS. IF I DON'T GET AN ANSWER FOR YOU TODAY, WE COME BACK, BECAUSE, AGAIN, WE COME BACK ON THE 18TH ON WORK SESSION. WE WILL BE ABLE TO LAY IT OUT. >> YEAH, THIS IS A BIT OF A NUANCEED QUESTION. WHEN I LOOK AT CHANGES FROM DIFFERENT BUDGET YEARS I TRY TO IDENTIFY WHERE WE HAVE GOT BIG CHANGES AND AT LEAST OFFER EXPLANATION WHY ZEE THE CHANGES. IF THERE IS ADDITIONAL VEHICLE MAINTENANCE COST, TOTALLY GET IT. >> IF WE CAN'T GET THAT TO YOU TONIGHT, WE WILL ANSWER IT ON THE 18TH. >> OKAY. THANK YOU. >> YES, SIR. >> WITH THE REFUSE FUND, I KNOW WE HAD THIS CONVERSATION PREVIOUSLY ABOUT MINIMUM BALANCE WE NEED TO HOLD IN THERE AND WE TALKED ABOUT HOW COUNCIL'S DECISION MIGHT BRING US CLOSER TO WHAT THAT MINIMUM IS, I ASSUME WITH THE BUDGET PROPOSED WE ARE ESSENTIALLY SEEING WHAT WE SAW BACK AT THE BUDGET STRATEGY DISCUSSION AND WE ARE STILL IN THE SAFE ZONE AS FAR AS THE BALANCE GOES. >> YES, SIR. THE BALANCE POLICY IS 5%. YOU ALLOWED US TO TRY TO BUDGET TOWARDS 6% FUND BALANCE, WHICH IS WHERE WE WOULD BE. >> ON THE DRAINAGE FUND, YOU MENTIONED PURCHASING A TRACK LOADER. WE ARE DOING THAT AS A GENERAL FUND, NOT A GENERAL FUND, THAT IS THE WRONG WORD, A DRAINAGE FUND EXPENSE VERSES CAPITALIZING THAT EXPENSE. CORRECT? THAT IS AN INTENTIONAL DECISION? >> YES. >> OKAY. >> THANK YOU. YOU MENTIONED ON THE EMPLOYEEBEN BENEFITS FUND, PERHAPS WE DIDN'T HAVE THE BEST USAGE PATTERNS. IS THERE ANY WAY YOU COULD ELABORATE ON THAT A LITTLE BIT? IF NOT, THAT IS OKAY. >> YES, SIR. >> ALL RIGHT, THANK YOU. APPRECIATE THAT. >> I DON'T EVEN WANT TO APPROACH HIPAA IN ANY WAY, SHAPE, OR FORM. >> I UNDERSTAND HOW HEALTHCARE USAGE CAN GO. >> THEY ARE ANALYZING IT. >> SURE. SURE, SURE, SURE. I UNDERSTAND HOW OURS WORKS BECAUSE WE HAVE TALKED IN THE PAST ABOUT PAST MAJOR EXPENSES WE HAVE HAD AND HOW THAT IMPACTS OUR FUND THERE AS WELL. I TOTALLY GET THAT. I DO WANT TO POINT OUT A COUPLE THINGS I THINK ARE REALLY, REALLY AWESOME. NUMBER ONE, GOING FROM FISCAL YEAR 2024 TO 2026, PARKS MAINTENANCE BUDGET WENT $2.6 MILLION TO $3.45 MILLION, 30% INCREASE. I THINK WE ALL KNOW THAT WAS VERY MUCH NEEDED. SO I APPRECIATE THAT. I APPRECIATE THAT THERE HAS BEEN A DEDICATED EFFORT TO PUTTING DOLLARS IN THAT AREA BECAUSE WHEN WE TALKED ABOUT WHAT THE WET ZONES MAINTENANCE BUDGET WAS A COUPLE YEARS AGO, AND HOW INSUFFICIENT AND INADEQUATE THAT WAS, IT IS GOOD TO SEE ON PAPER THERE IS A PRETTY BIG DIFFERENCE THERE. FROM THE CODE ENFORCEMENT AREA AS WELL, INCREASE FROM FISCAL YEAR 2024 TO 2026, FROM $900,000 TO $1.2 MILLION, BIG INCREASE SHOWS WE ARE INVESTING IN THAT AREA AS WELL. I THINK THAT IS GREAT. COUNCIL, QUESTIONS? I DON'T WANT TO KEEP GOING IF THERE ARE QUESTIONS BURNING IN PEOPLE'S MINDS. >> IT IS OKAY IF YOU DON'T. WE HAVE TALKED ABOUT THIS QUITE OFTEN. >> TOTALLY UNDERSTAND. IN MY MIND, I THINK IT IS IMPORTANT FOR THE PUBLIC TO HEAR SOME OF THIS TOO. THERE IS A LOT OF DISCUSSION ABOUT BUDGETS AND I THINK I AM GOING TO DRIVE IT HOME WITH THIS POINT RIGHT HERE, WHICH IS YOU TALKED ABOUT THE GENERAL FUND, WHICH SITS OVER HERE ON ITS OWN&UTILITY FUND WHICH SITS HERES ON ITS OWN. WHEN WE MAKE DECISIONS TO APPROVE FUND THAT COME OUT OF GENERAL FUND OR CAPITAL FUND, SOME AS DOWNTOWN AREA, THOSE CANNOT OVERLAP WITH OUR UTILITY FUND AND REPLACING SEWER LINES AND THINGS OF THAT NATURE. SO, VERY DIFFERENT TYPES OF FUNDS WE ARE TALKING ABOUT. I REALLY THINK THAT IS IMPORTANT TO DRIVE HOME BECAUSE THERE IS A VERY BIG DIFFERENCE BETWEEN HOW WE SPEND [00:30:01] THE DOLLARS OUT OF ONE FUND VERSES THE OTHER. UM, LAST FEW QUESTIONS ARE KIND OF, I WILL MOLD INTO ONE. WELL, MAYBE TWO. TWO QUESTIONS. IN THE OTHER FUND LIST THERE IS A LOT OF FUNDS IN THAT LIST. WE HAVE A LOT OF "OTHER FUNDS." I APPRECIATE THAT YOU HAVE COMBINED THOSE BECAUSE IN THE PAST WE HAVE GONE FUND BY FUND BY FUND AND I DON'T KNOW THAT LEVEL OF DETAIL IS NECESSARY WITH THESE TYPES OF FUNDS BECAUSE MANY ARE STATUTORY. AT THE END OF THE DAY, WE HAVE REVENUES THAT COME FROM A STATUTORY REASON AND CAN ONLY BE SPENT IN A CERTAIN WAY. IT IS SOMEWHAT, AGAIN, WE DON'T NEED TO GET INTO THAT LEVEL OF DETAIL. WITH THAT SAID, ARE THERE ANY OF THESE FUNDS THAT COULD BE, OR SHOULD BE SUNSET AT ANY POINT IN TERMS OF NOT EXISTING ANYMORE, OR SO MANY STATUTORY AND THE OTHERS ARE JUST THE WAY WE DO BUSINESS AND THERE IS NO NEED TO CONSIDER THAT TYPE OF A DECISION? >> YOU COULD MAKE AN ARGUMENT TO SUNSET SOMETHING, YOU COULD ELIMINATE YOUR REPLACEMENT FUNDS, YOU SHOULDN'T, YOU COULD. MANY OF THE, YOUR DISASTER FUND, WHICH WE WILL PROBABLY NOT SUNSET BUT IT WILL ULTIMATELY NOT HAVE ANY FUNDS IN IT ONCE WE ARE PAST A CLAW BACK TIME LINE WHERE WE ARE COMFORTABLE. WE MOVED FUNDS FROM THERE THAT WERE STEAL. I THINK TO YOUR POINT, MAYBE TO SOME DEGREE. MANY OTHERS ARE REQUIRED. YOU WOULDN'T NECESSARILY SUNSET THEM. ONE CAV NOT, I THINK PART OF WHAT YOU SAID EARLIER TRYING TO GET CERTAIN THINGS OUT INTO THE PUBLIC'S EAR AND ON RECORD. FINANCE DIRECTOR GAVE A MUCH MORE DETAILED PRESENTATION OF THESE FUNDS ON THE 12TH. FOR THOSE THAT MAY BE INTERESTED. >> THANK YOU. SNOO LAST POINT OR QUESTION IS REGARD TO CIP, YOU PUT THE LIST OF THE-- GO BACK ONE, IT WAS THAT ONE. THE QUESTION ALWAYS BURNING IN MY MIND IS HOW DO WE STILL HAVE $10 MILLION IN BOND DOLLARS FROM 2018 AND $670,000 IN BOND DOLLARS 2015 TEN YEARS AGO THAT HAVE GONE UNSPENT? PLEASE, ELABORATE. >> BECAUSE WE HAVE PROJECTS AND PART OF THE CONVERSATION I HAD THIS MORNING, THAT WE MUST HAVE THOUGHT GOOD PROJECTS IN 2018 BUT NEVER GOT STARTED SO FOR US MORE RECENTLY, TRYING TO PLAY CATCH UP KRISTOF LED THE EFFORT WHERE SOME OF THOSE MAY NOT BE FEASIBLE. WE HAVE GONE OUT AND GOTTEN ENGINEER'S ESTIMATE OF PROBABLE COST. THAT IS HOW, SOME PROJECTS HAVEN'T MOVED FORWARD. YOU TAKE CHEESA ROAD AND OTHERS THAT ARE, NUMBER ONE, THOSE PROJECS ARE MANY YEARS IN DEVELOPMENT AS IT IS. NOT BEING HERE, I WILL SPECULATE, BASED ON WHAT I HAVE SEEN. MAYBE AT THE TIME WE DIDN'T DO A LOT OF UP FRONT EXPENDITURE AND PLANNING, IE, LAYING OUT CERTAIN DESIGN ELEMENTS AND THINGS YOU MIGHT DO WITH CAPITAL PROGRAM, WHICH WOULD PUT YOU AHEAD OF THE GAME, YOU TO INVEST THE MONEY TO GET THERE BUT WOULD PUT YOU HEAD OF THE GAME WHEN YOU GET THE MONEY AND RECEIVE REVENUE. WE ARE HAVING TO DO A LOT OF THAT NOW RIGHT OF WAY ACQUISITION, PLAN AND DESIGN. EVEN BEFORE I ARRIVED A LOT OF THAT WAS UNDER WAY. THAT IS TWO, THREE, FOUR, FIVE YEARS IN SOME INSTANCES. THERE HAVE BEEN FITS AND STARTS WITH PROJECTS. THAT IS HOW SOME OF THAT MONEY REMAINS. IT IS ENTIRELY POSSIBLE AND MOST LIKELY THAT WE WILL COME BACK TO THIS COUNCIL IN A WORK SESSION AND ASK YOU, DO YOU REALLY NEED OR WANT TO CONTINUE SOME OF THESE PROJECTS THAT WERE PROBABLY GOOD IDEAS IN 2016 OR 2017 BUT MAYBE NOT EVEN FEASIBLE IN TODAY OR TOMORROW'S ENVIRONMENT? >> I WOULD VERY MUCH LOOK FORWARD TO HAVING THAT DISCUSSION. I THINK WE ARE BEYOND THE POINT IN SOME OF THOSE PROJECTS OF THEM BEING FEASIBLE, SIMPLY FROM INFLATIONARY IMPACT ALONE. WE NEED TO MAKE THE DECISION TO GRAB A HOLD AND SAY WE ARE GOING TO DO THAT AND NEED TO ISSUE ANOTHER, OR AT LEAST GO TO THE VOTERS AND ASK FOR ADDITIONAL FUNDING TO MAKE THAT HAPPEN, OR WE NEED TO ABANDON THAT IDEA AND PUT THOSE DOLLARS TO WORK SOMEWHERE ELSE. AS YOU MENTIONED, AS YOU DEMONSTRATED FROM THE FUTURE CIP FUND BALANCE, WIE DON'T WANT THOSE SITTING IN AN ACCOUNT. WE WANT THEM DOING WORK ON OUR STREETS AND ROADWAYS. DEFINITELY APPRECIATE THAT. COUNCILMEMBER BRITON ECHOESED THAT DESIRE. THE YEARS CONTINUE TO TICK BY AND I CONTINUE TO SEE DOLLARS SIT THERE. I AM VERY EXCITED TO HAVE THAT DISCUSSION. THANK YOU FOR PUSHING THAT AHEAD. I AM ALSO VERY GRATEFUL IN SEEING THAT CHART. IF YOU CAN PULL IT UP ONE MORE TIME T. IS A FEW SLIDES FROM NOW, I THINK. >> BACKWARDS OR FORWARD? >> FORWARD, WHERE YOU SHOW, THAT [00:35:03] ONE. THAT IS OUR EXPENSES. TO SAY THAT HOW MUCH WE ARE GOING TO EXPEND IN THE NEXT FIVE YEARS IS A TREMENDOUS AMOUNT OF DOLLARS THAT ARE GOING BACK INTO OUR COMMUNITY, THAT IS FANTASTIC, REALLY GOOD TO SEE. AGAIN, IT IS MONEY THE VOTERS HAVE APPROVED AND AUTHORIZED AND SO IT IS GRATEFUL TO SEE THAT COME INTO FRUITION. >> COUNCIL, OTHER QUESTIONS FOR MR. HALL? >> ALL RIGHT. IF THERE ARE NO QUESTIONS, THANK YOU. >> MAYBE I JUST, REAL QUICK, I WOULD LIKE TO JUST EXPRESS MY GRATITUDE AND EXPRESS OUR GRATITUDE TO OUR GREAT STAFF ALL THE TIME, BUT THIS IS, I MEAN, THIS IS REALLY IN-DEPTH, YOU KNOW, SORT OF THIS FINAL ITERATION. I REALLY WANT TO JUST EXPRESS HOW PLEASED AND GRATEFUL WE ALL ARE FOR Y'ALL BEING ABLE TO PROVIDE THIS, THIS LEVEL OF DETAIL. NOT ONLY THE LEVEL OF DETAIL, BUT THE LEVEL OF EXPLANATION, WHAT IT IS WE ARE LOOKING AT. THANK YOU VERY MUCH FOR THAT. >> I WILL SECOND THAT. >> I WOULD SECOND THAT AS WELL. I KNOW THIS IS A LOT OF HARD WORK, A LOT OF LONG HOURS, AND WE ARE ALWAYS VERY GRATEFUL FOR YOUR HARD WORK. SO, THANK YOU. AND, I PROBABLY WILL HAVE MORE QUESTIONS BUT IT TAKES ME A LONG TIME TO GET THROUGH THIS. >> AS A REMINDER, WE ARE HAVING A SESSION NEXT WEEK AS WELL FOR ADDITIONAL QUESTIONS. >> THANK YOU, MR. HALL. >> AT THIS TIME WE WILL MOVE TO ITEM 5, CITIZEN'S INPUT. AT THIS TIME COMMENTS WILL BE TAKEN FROM THE AUDIENCE, NO ACTION CAN BE TAKEN BY THE COUNCIL DURING CITIZEN'S INPUT. I DO NOT SEE ANY MEMBERS OF THE PUBLIC HERE [6. CONSENT AGENDA] TO SPEAK THIS EVENING. I DON'T THINK WE RECEIVED ANY E MAILS, WE WILL MOVE TO ITEM 6, CONSENT AGENDA. ITEM 6A, WELL, IT IS THE ONLY CONSENT AGENDA ITEM. CONSIDER ACTION APPROVING MINUTES CONSIDER ACTION FROM THE FOLLOWING CITY COUNCIL MEETINGS, JULY 15, 2025, CITY COUNCIL WORK SESSION AND JULY 16, CITY COUNCIL MEETING. COUNCIL, I WILL ENTERTAIN A MOTION TO APPROVE THE CONSENT AGENDA ITEM AS READ. >> MY BUTTON IS NOT WORKING, I WILL MAKE THAT MOTION THAT WE APPROVE THE MINUTES FROM OUR JULY 15 CITY COUNCIL WORK SESSION AND JULY 15 CITY COUNCIL MEETING. >> A MOTION. >> I SECOND. >> SECOND BY MR. REAVES. ANY DISCUSSION? >>> LETS TRY TO CALL THE VOTE,PLEASE. [7A. Consider action to approve a resolution calling for a public hearing on the Fiscal Year 2026 proposed budget and tax rate for Tuesday September 16, 2025, and to consider approval of a maximum tax rate of $0.841997 for Fiscal Year 2026.] >> THERE WE GO. THAT CARRIES UNANIMOUSLY. THANK YOU. >> NEXT IS ITEM 7A, CONSIDER ACTION TO APPROVE A RESOLUTION CALLING FOR A PUBLIC HEARING ON FISCAL YEAR 2026 PROPOSED BUDGET AND TAX RATE FOR TUESDAY, SEPTEMBER 16, 2025&TO CONSIDER APPROVAL OF A MAXIMUM TAX RATE OF 0.8419997 FOR FISCAL YEAR 2026. >> GOOD EVENING, BARE WITH ME, THERE ARE GOING TO BE A LOT OF NUMBERS IN THIS PRESENTATION AS WELL. I AM HERE TONIGHT WITH THE PRESENTATION FOR YOU TO CONSIDER ACTION TO APPROVE RESOLUTION ESTABLISHING A FISCAL YEAR 2026 PROPOSED TAX RATE AND ALSO CALLING FOR AND SCHEDULING A PUBLIC HEARING ON FISCAL YEAR 2026 PROPOSED BUDGET AND TAX RATE FOR TUESDAY SEPTEMBER 16, 2025. TRUTH IN TAXATION IS A CONCEPT THAT IS EMBODYY IN THE TEXAS CONSTITUTION AND THE TAX CODE THAT REQUIRES LOCAL TAXING DISTRICTS TO MAKE TAXPAYERS AWARE. THIS STARTS WITH THE DALLAS COUNTY TAX COLLECTOR'S OFFICE, CALCULATING AND CERTIFYING NO NEW REVENUE AND VOTER APPROVAL RATES USING TEXAS TROLLER CALCULATION WORKSHEET PRINT OUT BY THE STATE AND JULY 25TH CERTIFIED VALUES THAT ARE PROVIDED BY D-CAD AND R-CAD. FISCAL YEAR 2026 RATES CERTIFIED BY DALLAS COUNTY ON JULY 30TH. TONIGHT THOSE RATES IN MIND, COUNCIL WILL VOTE TO SET THE PROPOSED TAX RATE TO PUBLISH FOR TAX RATE HEARING, THE PURPOSE OF THIS PROPOSED TAX RATE IS TO PROVIDE A CEILING OR MAXIMUM RATE THAT THE COUNCIL WILL CONSIDER ADOPTING. COUNCIL IS NOT DOPTING THE ACTUAL TAX RATE TONIGHT, WANT TO MAKE THAT CLEAR. COUNCIL IS NOT REQUIRED TO ADOPT THIS PROPOSED TAX RATE FOR FISCAL YEAR 2026 EITHER. THIS RATE IS ONLY PROPUBLICATION AND LIMITATION PURPOSES FOR THE REMAINDER OF THE BUDGET DISCUSSIONS UNTIL WE ADOPT THE BUDGET. FINALLY, WE WILL END THE PROCESS WITH A TAX RATE HEARING AND REGULAR COUNCIL MEETING ON TUESDAY, SEPTEMBER 16TH AND THEN ADOPT FISCAL YEAR 2026 TAX RATE AT SPECIAL COUNSEL MEETING THE NEXT EVENING ON WEDNESDAY, SEPTEMBER 17TH. >>> HERE ARE SOME OPTIONS FOR THE PROPOSED TAX RATE THAT ARE BEING PROVIDED. AS SHOWN IN THE SECOND COLUMN, THE FISCAL YEAR 2026 CITY MANAGER'S PROPOSED [00:40:03] BUDGET PRESENTED TONIGHT BY THE CITY MANAGER HAS BEEN PREPARED WITH A TAX RATE OF 80.7891 CENTS AS DISCUSSED AT THE CITY COUNCIL BUDGET SESSION, THIS INCREASES CURRENT O&M RATE 53.1341 CENTS BY 3/4 OF A CENT, AND INCREASES INS RATE BY 3.1 CENT TO 26.905 CENT AS APPROVED BY VOTERS IN THE 2023 BOND ELECTION. THE NO NEW REVENUE TAX RATE IN THIRD COLUMN IS A CALCULATED RATE THAT WOULD PROVIDE THE CITY WITH APPROXIMATELY THE SAME AMOUNT OF REVENUE IT RECEIVED IN THE YEAR BEFORE, ON THE SAME PROPERTIES THAT WERE TACKED IN BOTH YEARS. IF PROPERTY VALUE RISE NO NEW REVENUE TAX RATE WILL GO DOWN, AND VICE VERSA. THIS RATE IS CALCULATED BY DALLAS COUNTY AT TOTAL OF $79.1518 CENTS. THE VOTER APPROVAL RATE SHOWN IN THE LAST COLUMN PROVIDES THE TAXING UNIT WITH APPROXIMATELY THE SAME AMOUNT OF TAX REVENUE IT RECEIVED IN THE PREVIOUS YEAR, PLUS THREE AND ONE HALF PERCENT INCREASE FOR THOSE OPERATIONS AND ADDITION TO THE UNUSED RATE AND SUFFICIENT FUNDS TO PAY DEBT SERVICE IN THE COMING YEAR. THE VOTER APPROVAL RATE ALSO REPRESENTS THE MAXIMUM RATE THAT THE COUNCIL CAN ADOPT WITHOUT BEING SUBJECT TO AUTOMATIC ELECTION AT THE NOVEMBER UNIFORM ELECTION DATE AND THIS RATE IS ALSO CALCULATED BY DALLAS COUNTY AND TOTAL $84.1997 CENTS. STAFF IS RECOMMENDING APPROVING VOTER APPROVAL RATE 0.841997 AS PROPOSED TAX RATE WHICH IS COMPRISED OF OPERATIONS AND MAINTENANCE TAX RATE OF 0.572947, AND DEBT SERVICE TAX RATE OF 0.2690507 PER 100 IN TAXABLE VALUE. AT THIS TIME I WOULD BE HAPPY TO ANSWER ANY QUESTIONS AND THEN OPEN THE FLOOR FOR COUNCIL ACTION TO VOTE ON A PROPOSED RATE FOR PUBLISH AND THEN ALSO CALL FOR PUBLIC HEARINGS ON THE FISCAL YEAR 2026 BUDGET AND TAX RATE TO BE HELD ON SEPTEMBER 16TH, 2025 AT 7:00 P.M. >> COUNCIL, WHAT QUESTIONS DO YOU HAVE? >> I KNOW YOU KEEP SAYING IT, I WANT TO MAKE SURE I UNDERSTAND IT. SO, WE ARE BASICALLY POSSIBLY APPROVING THE ABSOLUTE MAX THAT IS AVAILABLE AND THEN WE CAN WORK FROM THERE. THIS IS NOT-- I WANT TO MAKE SURE THAT THE CITIZENS AREN'T THERE LISTENING TO THIS CONVERSATION SAYING MY GOODNESS, LOOK AT THIS HUGE TAX RATE THEY ARE THROWING OUT TO US. THAT IS NOT WHAT WE ARE DOING. I KIND OF WANT TO MAKE SURE THAT IS VERY CLEAR ON THE RECORD THAT WE ARE BASICALLY SETTING THE CEILING SO THAT WE CAN WORK BACK, YOU WILL FROM THERE. >> ONCE YOU SET THE CEILING YOU CAN'T GO ABOVE THAT BUT YOU CAN GO BELOW. THE PROPOSED BUDGET DOES HAVE A LOWER TAX RATE IN IT. >> QUITE A BIT LOWER BUT I WANT TO MAKE SURE THAT TOMORROW PEOPLE THAT MAY HAVE SEEN THIS ARE CLEAR WHAT IT IS THAT IS BEING VOTED ON, I THINK THAT IS IMPORTANT. >> YES, YOU ARE RIGHT. >> THAT HAS BEEN OUR PRACTICE IN THE PAST, RIGHT? WE HAVE DONE THAT FOR A NUMBER OF YEARS. >> SEVERAL YEARS. >> YES. >> THE REASON BEING, ESPECIALLY THIS YEAR, WITH THE QUESTION ON CERTIFIED VALUES AND DECAD'S OUTLANDISHLY LARGE NUMBER OF APPEALS THAT THEY ARE HAVING TO WORK THROUGH, THERE IS JUST SO MUCH UNCERTAINTY AND UNKNOWN FACTORS THAT COULD COME UP, WE ALSO HAVE OTHER FACTORS WITHIN THE CITY WE ARE FIGHTING WITH, WITH REGARD TO CERTAIN MULTIFAMILY DEVELOPMENTS THAT MIGHT BE POACHED BY OUT OF JURISDICTIONAL HOCS AND THOSE TYPES OF IMPACTS COULD HAVE A PRETTY SIZABLE REDUCTION IN OUR REVENUE. IF THEY WERE TO GO THROUGH AND IF THEY WERE TO HAPPEN. I THINK IT IS IMPORTANT THAT WE CONSIDER A HIGHER TAX RATE THAT WHAT WE CONSIDERING SIMPLY BECAUSE IT ALLOWS US THAT FREEDOM AND FLEXIBILITY AND, PERSONALLY AS COUNCILMEMBER, I LIKE TO HAVE OPTION S. SO, THAT IS WHERE I AM AT. ANY OTHER QUESTIONS FOR WENDY? ALL RIGHT. THIS IS AN ACTION ITEM SO I DO NEED A MOTION AND THERE IS RECOMMENDED ACTION IN THE PACKET ON PAGE 25 AT THE VERY TOP. IF YOU ARE LOOKING FOR THAT. I WILL ENTERTAIN A MOTION. >> I WOULD LIKE TO MAKE A MOTION TO APPROVE A RESOLUTION CALLING FOR A PUBLIC HEARING ON THE FISCAL YEAR 2026 PROPOSED BUDGET [00:45:02] AND TAX RATE FOR TUESDAY, SEPTEMBER 16TH, 2025, AND TO CONSIDER APPROVAL OF MAXIMUM TAX RATE OF 0.841997 CENTS FOR FISCAL YEAR 2026. >> WE HAVE A MOTION. DO WE HAVE A SECOND? >> I SECOND. >> I HAVE A MOTION AND SECOND TO APPROVE THE ITEM AS PRESENTED. ANY DISCUSSION? >> ONE COMMENT REAL QUICK, I WAS A LITTLE SLOW TO THE DRAW ON THE THANKS, I JUST WANT TO THANK THE CITY MANAGER'S OFFICE, CITY MANAGE, DEPY CITY MANAGER AND FINANCE TEAM TO ECHO MY COLLEAGUE 'S STATEMENTS BUT TO REALLY BALANCE THE FISCAL RESPONSIBILITY OF NOT, YOU KNOW, WITH PROPOSED BUDGET BEING UNDER WHAT WE CAN WITH, WITH STILL MANAGING ALL THE NEEDS IN THE CITY AND THE INVESTMENT THAT WE NEED AND CAPITAL OUTLAYS THAT WE HAVE, WANT TO SAY THANK YOU, I THIS CAN YOU TOOK A VERY THOUGHTFUL APPROACH THIS YEAR AND THEN, AGAIN, CITY MANAGE, JUST IN TWO YEARS, TO INCREASE THE SURPLUS BALANCE THAT WE HAVE TO REALLY MAKE SURE THAT THE CITY, FOR THE LONG TERM, IS ON SOLID FINANCIAL FOOTING, I CAN'T UNDERSCORE THE VALUE AND IMPORTANCE THAT ADDS. I WANT TO PUBLICLY SAY THANK YOU TO ALL OF YOU FOR DOING THAT. I THINK THAT IS A TREMENDOUS THING TO HAVE ACCOMPLISHED IN TWO YEARS. >> ANY OTHER COMMENTS OR QUESTIONS? >>> ALL RIGHT, IN THAT CASE LETS CALL THE VOTE, PLEASE. ALL RIGHT.UNANIMOUSLY 7-0. >>> WITH THAT, MEMBERS OF THE CITY COUNCIL MAY REQUEST TOPICS TO BE PLACED ON AGENDA FOR A MEETING. ANY DELIBERATION OR DECISIONTIAL BE LIMITED TO A PROPOSAL ARE TO PLACE ON TOPIC ON THE AGENDA FOR THE SUBSEQUENT MEETING. ANY FUTURE AGENDA ITEMS? WE WILL * This transcript was compiled from uncorrected Closed Captioning.