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[1. CALL TO ORDER]

[00:00:04]

>> THIS AFTERNOON. IT IS TUESDAY, JUNE 2, 2020 AT 5:45 P.M.

AS AUTHORIZED BY THE TEXAS GOVERNMENT CODE THIS MEETING MAY BE CONVENED IN A CLOSED EXECUTIVE SESSION FOR THE PURPOSE OF SEEKING CONFIDENTIAL LEGAL ADVICE FROM THE CITY ATTORNEY ON ANY AGENDA ITEM HEREIN. THE CITY OF ROWLETT RESERVES THE RIGHT TO RECONVENE, REASSESS OR REALIGN THE REGULAR SESSION OR CALLED EXECUTIVE SESSION IN ORDER OF BUSINESS AT ANY TIME PRIOR TO ADJOURNMENT. DUE TO THE PUBLIC HEALTH EMERGENCY AND TO CONFIRM WITH THE SOCIAL DISTANCING REQUIREMENTS THE CITY COUNCIL MEETING WILL BE HELD VIA TELECONFERENCE -- TELECONFERENCING.

THE PUBLIC AND VIEWED LIVE CITY'S WEBSITE OR VIA RT AND 16. >> WE ARE CALLING THIS MEETING TO ORDER AND WE DO HAVE A QUORUM. WE DON'T HAVE A SCHEDULED EXECUTIVE SESSION SO WE WILL BEGIN WITH THE WORK SESSION. WE WILL CHANGE THE ORDER AND

[3B. Discuss the market and rating climate surrounding the scheduled issuance and sale of City of Rowlett, Texas Series 2020 General Obligation Bonds authorized in 2018, and Series 2020 Waterworks and Sewer System Revenue Bonds. (30 minutes)]

DISCUSS ITEM THREE D FIRST FIRST. DISCUSSED THE MARKET OF AROUND THE CITY OF TEXAS SERIES AND GENERAL OBLIGATION BONDS AUTHORIZED IN 2018 AND SERIES 22020 WATERWORKS AND SEWER SYSTM REVENUE BOND SPIRIT SOUL WHO WILL START US OFF.

IS THAT YOU BRIAN. >> I WILL START US OFF. SANTELLA WENDY.

SANTELLA. I WANT TO START BY GIVING COUNSEL AND THE CITIZENS A LITTLE BACKGROUND INFORMATION THAT THE CITY HAD PLANNED ONE ISSUANCE OF $20 MILLION FOR THE 3RD AND FINAL PHASE OF THE COMMUNITY INVESTMENT BOND ELECTION THAT WAS PASSED IN 2018 AS WELL AS $7 MILLION IN WATER REVENUE BONDS. TONIGHT WE ARE BRINGING IN THE FINANCIAL ADVISOR TO PROVIDE THE CORRECT MARKET AND RATING CLIMATE AND POSSIBLE RECOMMENDATIONS FOR EACH OF THE ISSUANCE. THE YEAR PLANNED 2020 ISSUANCE IS IS SCHEDULED TO FUND $60 MILLION IN ROADWAY IMPROVEMENTS.

$8,000 IN TRAIL AND FIRE STATION DESIGN INFRASTRUCTURE AND. AT THE MAY 16, 2020 STRATEGIC PLANNING SESSIONS THE CITY COUNCIL DISCUSSED THE OPTION OF SPREADING THIS YEAR'S PLAN OVER TWO YEARS. THIS OPTION WOULD INCLUDE $10 MILLION IN JULY OF THIS YEAR AS WELL AS THE REMAINING $10 MILLION IN JULY OF NEXT YEAR.

IT COULD INCLUDE A DEPLOY OF THE BOND ELECTION UNTIL 2022. TO ACCOMMODATE THE SPREAD OVER TWO YEARS COUNSEL PROVIDE CE CENSUS, GENERAL CONSENSUS TO DELAY THE WIDENING PROJECT TO SOUTH MILLER WHICH WOULD DEFER ABOUT $9 MILLION FROM 2021 UNTIL 2022.

THIS WOULD ALSO SERVE TO AVOID SCHEDULING CURRENT CONSTRUCTION FROM DELL ROCK TO THE SOUTH OF MILLER AS WELL AS MILLER TO THE RAILROAD TRACKS. ADDITIONALLY.

>> WINDY I WOULD LIKE TO STOP YOU FOR A SECOND PERIOD I JUST DON'T WANT TO MISREPRESENT THAT.

THE COUNCIL GAVE SENSES TO DELAY THE PROJECT THAT IS NOT WHAT WE ARE TALKING ABOUT THIS.

WE WERE INFORMED BY PUBLIC WORKS IT WAS NOT POSSIBLE TO CONSTRUCT THE ROAD CONSTRUCTION AT THIS TIME. I WOULD LIKE, WHO IS ON THE PHONE, THEY CAN TELL US THAT.

I DON'T WANT TO REPRESENT TO THE PUBLIC THAT THE CITY COUNCIL IS MAKING DECISIONS TO DELAY A

PROJECT FOR THE WRONG REASONS. >> MAY I REALLY QUICK, THAT IS A GOOD POINT.

IT IS PROBABLY THE MOST COMPLEX PROJECT WE HAVE COME ACROSS IN A WILD.

WE WILL HAVE TO SOLVE DRAINAGE ISSUES. WE HAVE LIMITED SPACE.

LIMITED SPACE ON THE SOUTH SIDE WHERE THE RAILROAD TRACKS ARE. COUNSEL HAS ISSUED BONDS LAST SUMMER THAT HAS PROVIDED US THE MONEY TO START WITH THE DESIGN ENGINEERING AND SOME OF THE ACQUISITION SPIRIT SO WE DO HAVE SOME TIME ON THAT PROJECT AND QUITE FRANKLY WE WOULD NEED IT.

>>> OKAY. THANK YOU BRIAN. ADDITIONALLY THIS YEAR'S PLANNED $7 MILLION IN REVENUE BOND -- BONDS IS A MULTI- YEAR IMPROVEMENT TO THE STATE HIGHWAY 66 LINE AND ENFORCEMENT AS WELL AS THREAD HAVE MILLION DOLLARS IN OTHER VARIOUS WATER AND SEWER IMPROVEMENTS TOTALING THE $7 MILLION. AT THE MAY 16 PLANNING SESSION, ALSO PROJECTS WERE IDENTIFIED AS POSSIBLE OPTIONS TO DELAY IF A REDUCTION WAS NECESSARY TO

[00:05:04]

EITHER THE RATING FOR THE MARKET CLIMATE FOR THE WATER AND SEWER REVENUE BOND AND COUNCIL DISCUSSED, THE GENERAL CONSENSUS AT THE MEETING WAS TO REMAIN ON THE $7 MILLION TO SUPPORT THE PROJECT TIMING AND INFRASTRUCTURE EFFICIENCY AND WE WANTED TO DISCUSS IT FURTHER WITH OUR FINANCIAL ADVISORS. AT THAT STRATEGY SESSION OF THE BOND MARKET WITH THE CITY FINANCERS ADVISE BEFORE REVIVING THE DECISION AND PROVIDING STAFF WITH DIRECTION TO PROCEED ON THE AMOUNT TO WORK ON, TONIGHT THE ISSUE HAS JOINED US FOR THIS DISCUSSION AND PROVIDE ANSWERS TO ANY ADDITIONAL QUESTIONS YOU MAY HAVE. WITH THAT BACKGROUND INFORMATION

I WILL TURN IT OVER TO PARTY. >>> WELCOME MARTY. >> GOOD EVENING EVERYONE.

I AM WITH HILLTOP SECURITIES. AS YOU CAN IMAGINE THERE IS A LOT GOING ON IN TERMS OF THE EFFECTS OF THE PANDEMIC ON THE ECONOMIC CONDITION AND LATELY WE HAVE SEEN AN EXTREME AMOUNT OF VOLATILITY IN THE MARKET AS A RESULT SINCE THIS STARTED, THE CORONAVIRUS.

IN FACT A COUPLE OF MONTHS AGO WE HAD THE MUNICIPAL MARKET AT ITS SINGLE WORST DATE WHERE ISSUANCE HALTED. I AM HAPPY TO REPORT THAT SINCE THEN WE HAVE SEEN A COMPLETE REBOUND AND THE MARKET IS MOVING AND GROOVING AND WE ARE BACK TO HISTORICAL LOW LEVELS WHERE WE HAVE SEEN OVER TIME THE ISSUES PICK UP. WHILE THERE IS STILL VOLATILITY THEIR IS A LOT STILL BEING DONE. I THINK WE LOOK AT THIS AND THERE'S A COUPLE OF THINGS YOU HAVE TO TAKE INTO CONSIDERATION AS YOU ARE MOVING INTO THE ISSUANCE PROCESS.

YOU HAVE YOUR POLICY ISSUE ABOUT WHETHER YOU MOVE FORWARD AND HOW MUCH IS NEEDED.

WE HAVE UPDATED YOUR CAPITAL IMPROVEMENT PLANS AND WE HAVE UPDATED THIS ACCORDINGLY AND WE WILL GO THROUGH THOSE AND A SECOND PERIOD TAKING A STEP BACK IN TERMS OF WHAT YOU SHOULD BE CONSIDERING FROM THE MARKET OVERALL, I THINK THE GOOD NEWS IS THAT WHILE THERE IS VOLATILITY GOING ON, THE CITY OF ROWLETT IS SOMEWHAT INSULATED. THERE IS A POSITIVE TO THE CURRENT ENVIRONMENT BECAUSE, BECAUSE, REALLY WHAT WE ARE SEEING IS THE CITY'S HIT HARDEST BY EVERYTHING RIGHT NOW ARE THOSE THAT ARE HEAVILY IS ONE THAT HAVE A SIGNIFICANT COMMERCIAL PRESENCE. COMMERCIAL VALUE WILL TAKE THE BRUNT OF THE DECLINES IN PROPERTY VALUES AND THAT IS BECAUSE THE LACK OF BUSINESS BEING ABLE TO BE CONDUCTED AND THE RETAIL STORES, IT IS HEAVILY RELIANT ON THE COMMERCIAL PROPERTIES.

AND MOODY'S JUST RELEASED A REPORT YESTERDAY WHERE THEY HIGHLIGHTED SOME DIFFERENCES BETWEEN THE LAST RECESSION VERSUS THE CURRENT DOWNTURN. THEY ACTUALLY HAVE GONE OUT AND PUBLISHED IN THE REPORT THAT THEY THINK THE IMPACT ON THE RESIDENTIAL PROPERTY VALUES WILL BE MORE MODERATE THIS GO AROUND BECAUSE OF THE DIFFERENCES IN THE LIVING CONDITIONS.

SO, THE LAST RECESSION DRIVEN BY FINANCIAL IMBALANCES STARTED IN THE HOUSING SECTOR, OBVIOUSLY THIS DOWNTURN IS BECAUSE OF A PUBLIC HEALTH CRISIS. SO THE GOOD NEWS IS IT IS EXPECTED THAT FORECLOSURES WHICH WERE HUGE IN THE LAST RECESSION ARE GOING TO BE MITIGATED THIS TIME AROUND BECAUSE OF THE MORTGAGE LENDING STANDARDS BEING TIGHTENED.

AGAIN THIS IS MORE OR LESS, A POSITIVE BECAUSE OF THE TAX PHASE AND HOPEFULLY IT WILL MITIGATE SOME OF THE IMPACT MOVING FORWARD. WHAT WE TRIED TO DO IS JUST UPDATE YOUR CAPITAL IMPROVEMENT PLAN TO BE CONSERVATIVE. IF WE WANT TO LOOK AT IT THERE ARE FOUR DIFFERENT SCENARIOS WE HAVE PROVIDED FOR YOU. I DON'T KNOW IF THOSE WILL BE SHARED ON THE SCREEN OR NOT. THE FIRST ONE, THERE ARE FOUR DIFFERENT SCENARIOS, -- WHO HAS

THOSE PLANS. >> OVER -- THEY WERE IN THE STAFF PACKET I DIDN'T PUT THEM

[00:10:01]

IN THE PRESENTATION. LAURA I DON'T KNOW IF YOU CAN PULL THOSE.

THEY WERE THE ATTACHMENTS TO ITEM THREE A. >> IF YOU WILL BEAR WITH ME.

>> I THINK THE FIRST ONE IS PROBABLY ATTACHMENT ONE FOR THE G OLD BONDS.

>>> I CAN WALK THROUGH THESE. IN A NUTSHELL WE PREPARED SCENARIOS TO LOOK AT.

EVERY YEAR WHEN YOU COME TO MARKET TO ISSUE BONDS WE DO AN ANALYSIS WHERE WE LOOK AT YOUR EXISTING DEBT AND WE LAYER A NEW DEBT AND MORE OR LESS COME UP WITH AN ANALYSIS.

THE ONES WE HAVE BEEN DOING, THERE THEY ARE. THE LAST FEW YEARS HAVE ALSO TAKEN INTO ACCOUNT YOUR PROJECTED FUTURE BOND ELECTION OUT THE RACIALLY SPIRIT SO AS I'VE MENTIONED THERE IS ALL OF THIS VOLATILE UNCERTAINTY. WHAT WE DON'T KNOW MOVING FORWARD IS WHAT WILL HAPPEN IF THERE IS A RESURGENCE OF THE VIRUS.

THAT IS OUR BIGGEST UNKNOWN. WE ARE IN AN UNPRECEDENTED SITUATION AND IT WILL DEPEND ON THE DURATION OF YOUR STAY-AT-HOME ORDERS, HOW LONG THOSE CONTINUE AND HOW LONG YOU HAVE SUSTAINED UNEMPLOYMENT. ALL OF THAT BEING UNKNOWN, WHAT WE TAKE INTO ACCOUNT IS TO BE AS CONSERVATIVE AS POSSIBLE AS FAR AS YOUR FUTURE GROWTH. I WOULD JUST WALK THROUGH THIS STARTING FROM THE LEFT TO THE RIGHT. YOU MAY HAVE SEEN THESE BEFORE BECAUSE WE UPDATE THEM ANNUALLY WHEN YOU COME TO MARKET. WE START HERE AND THE PRIMARY ASSUMPTION THAT GOES INTO THE MODELS IS YOUR ASSESSED GROWTH OVER TIME.

IN 19 -- THESE ARE ACTUAL GROWTH VALUES WHERE YOU CAN SEE THEY GREW 11%.

THE PRELIMINARY VALUES WILL BE 6% GROWTH. THE GOOD NEWS IS, TAXES COLLECTED ALL OF OUR TAXES PRIOR TO THE CORONAVIRUS HEATING SOLD MORE OR LESS THIS BUDGET CYCLE WON'T BE THE IMPACT. EVERYONE THE CONSENSUS IS IF THERE WILL BE AN IMPACT IT WILL HAPPEN IN FISCAL YEAR 2022. YOU WILL SEE THE BRUNT OF THAT. SO FOR PURPOSES OF THIS SCENARIO, AS CONSERVATIVE AS YOU CAN GET FOR THAT YEAR WILL BE 0%.

YOU CAN'T BUILD NEGATIVE BUT THERE IS NO REASON FOR US TO AIR THAT CAUTIOUSLY PICKED ANSELL 0% THEN WE USE A SLOW RAMP-UP FROM 1% TO 2% THEREAFTER. AGAIN THAT IS WELL BELOW WHERE YOUR ACTUAL GROWTH WILL BE. AFTER THAT WE LAYER IN YOUR TOTAL OUTSTANDING DEBT IN COLUMN E AND WE SUBTRACT THE FROZEN SHARE OF YOUR REVENUE. THIS IS PART OF YOUR PRESENT VALUE ON YOUR ASSESSED VALUE. YOU STILL -- THAT IS NOT IN YOUR TAX RATE CALCULATION FROM THE STATE WHICH IS WEIRD. ANTIQUATED BUT I DON'T KNOW WHY. YOU DO RECEIVE REVENUE OFF OF THAT PORTION SO WE PULLED IT INTO THE MODEL SO YOU CAN GET CREDIT.

THEN WE SUBTRACT THE PORTION OF YOUR DEBT AS BEING PAID BY OTHER REVENUE SURFACES.

SO WHAT'S BEING TRANSFERRED THAT IS THE REVENUES OUTSIDE OF WHAT IS BEING PAID BY YOUR PROPERTY

TAX RATES. >>> SO THAT GETS US TO YOUR TOTAL PROPERTY TAXES.

THEN WE THEY ARE ON THE NEW ISSUES AND THE OTHER COLUMNS. SO WE HAVE BROKEN THESE SCENARIOS UP, INTO TWO DIFFERENT ASSUMPTIONS AND WHETHER OR NOT WE SPLIT YOUR SERIES 22 ANY INTO TWO ISSUANCES OR ISSUE IT ALL AT ONCE. YOUR 2018 ELECTION OPERATION YOU ARE THIS LEFT REMAINING IN YOUR AUTHORIZATION. SO IT WAS ALWAYS ANTICIPATED YOU WOULD COME BACK FOR THE 33RD AND FINAL ISSUANCE OF THAT THIS YEAR SO THE QUESTION IS DO YOU WANT TO MOVE FORWARD OR DO YOU WANT TO BREAK IT UP INTO TWO PIECES AND MITIGATE OR GIVE YOURSELF MORE FLEXIBILITY AS IT RELATES TO YOUR DEBT ISSUES MOVING FORWARD.

[00:15:06]

>> AS I MENTIONED BEFORE THE GOOD NEWS IS WE HAVE SEEN A TOTAL MARKET REBOUND SO WE ARE STILL AT HISTORICAL LOWS. THE GOOD NEWS IS IF YOU ACTUALLY ISSUED YOUR DEBT TODAY WE WOULD EXPECT YOU TO PRICE THIS SOMEWHERE BETWEEN 2.3% AND 2.8%. SO AGAINST THAT COULD BE SUBJECT TO MARKET CONDITIONS. I FEEL LIKE WEEK TO WEEK THERE COULD BE SOME SORT OF NEW STORY THAT COULD SWING THE PENDULUM EITHER WAY. I SAY THAT WITH CAUTION.

THE GOOD NEWS IS THAT IS WHERE WE SEEK YOU. WHEN YOU ARE CONTEMPLATING A DELAY IN AND ISSUANCE WHAT YOU WANT TO CONSIDER IS WE DON'T KNOW WHAT THE INTEREST RATES WILL BE. IF YOU SPLIT THIS INTO TWO YEARS WE KNOW WHERE THIS COULD PUT THIS INTO THE MODEL BUT WE DON'T KNOW WHAT THE INTEREST RATES WILL BE IN ONE YEAR.

GENERALLY WE HAVE BEEN ADVISING OUR CLIENTS THAT, IF YOU KNOW YOU WANT AN ISSUED DEBT AND YOU HAVE EXPENDITURES, THIS IS A GOOD RATE ENVIRONMENT TO ISSUE IT IN AND THE LONGER THIS GOES ON AND THE MORE UNCERTAINTY THERE IS THE MORE VOLATILITY THERE IS FROM OUR PERSPECTIVE

AND THAT IS THE RISK YOU HAVE TO OFFSET. >> SO WE HAVE ESSENTIALLY, THIS FIRST SCENARIO YOU ARE LOOKING AT MOVING FORWARD FOR YOUR TWO ELECTION AUTHORIZATIONS ABOUT $97.4 MILLION IN TOTAL CAPACITY. THIS IS MAINTAINING YOUR CURRENT TAX RATE OF 2.196.

THERE WOULD BE NO PROJECTED INCREASE TO ISSUE ALL OF THIS AS PLANNED WITH THESE ASSUMPTIONS.

>> WE HAVE TRIED TO BE CONSERVATIVE WITH YOUR INTEREST RATES MOVING FORWARD.

THERE IS A CUSHION BUILT INTO THOSE AND WE GO OUT TO A 5.25% WHICH SHOULD BE VERY

CONSERVATIVE. >>> SO THAT IS WHAT IT LOOKS LIKE IF WE ISSUE ALL OF YOUR 2020 NOW. THE SECOND SCENARIO, WHICH IS, I'M SORRY 1B IS IF WE BREAK UP THE 2020 ISSUANCE INTO ITS TWO PIECES WE DO $10 MILLION THIS YEAR END 10.25 MILLION NEXT YEAR END WE DELAYED YOUR ELECTION AUTHORIZATIONS IN ANOTHER YEAR AFTER THAT.

>> THE GOOD NEWS IS WE STILL WILL MAINTAIN EVERYTHING IN YOUR CURRENT TAX RATE.

THIS ONE LIMITS, THE ONLY DIFFERENCE IS THE SPLIT OF THE 2020 ISSUANCE BECAUSE WE WANTED TO BE MORE CONSERVATIVE WITH INTEREST RATES MOVING FORWARD. IT DIMINISHES YOUR CAPACITY BY A SLIGHT AMOUNT LIKE CAP A MILLION DOLLARS. IT IS IMPORTANT TO KEEP IN MIND THESE ARE LIVING BREATHING DOCUMENTS. EVERY YEAR WE GET THE DATA AND WE KNOW WHAT YOUR ASSESSED DATA IS. WE CAN UPDATE THIS AND MOVE FORWARD. I DON'T WANT YOU TO GET TOO STUCK INTO THIS AS THIS BEING YOUR ONLY CAPACITY FOR YOUR ELECTION. THIS IS WHAT WE USED TO GIVE YOU SOMETHING TO WORK WITH TODAY. IT DOES CHANGE EVERY YEAR AS WE GET MORE DATA APPEAR TO THE EXTENT THAT YOU GROW MORE THAN WE PROJECTED, IT WILL MITIGATE THE IMPACT AND CREATE MORE

CAPACITY MOVING FORWARD AS WELL. >>> SO THE VERSIONS TO A AND TO BE, THE ONLY DIFFERENCE AND THEM IS THAT WE HAVE ADJUSTED THE GROWTH VALUE FOR FISCAL YEAR 2022 FROM 0% TO 1%.

SO AGAIN, YOU DO PICK UP THAT INCREASE IN GROWTH IN 2022 AND IT WILL INCREASE YOUR CAPACITY FOR FUTURE ELECTION AUTHORIZATIONS. IT WILL PICK YOU UP AN ADDITIONAL $2 MILLION IN CAPACITY MOVING FORWARD. FOR EVERY INCREMENT OF GROWTH THEREAFTER YOU WILL PICK UP ADDITIONAL CAPACITY. BUT, THIS JUST GIVES YOU AN IDEA, SAME THING, SCENARIO TWO A AND TO BE THE ONLY DIFFERENCES WE SPLIT UP THE 2020 ISSUANCE WITH THE FULL 20 MILLION-DOLLAR ISSUANCE VERSUS INTO LAYERS. SO THE SECOND A SCENARIO YOU GET A TOTAL CAPACITY OF $99.5 MILLION AND YOU ARE GETTING THE SAME CAPACITY AVAILABLE ON THE SECOND SCENARIO WHERE YOU SPLIT IT UP. YOU JUST CAN PROBABLY ISSUE A LITTLE MORE OF THE BONDS EARLIER TO THE EXTENT YOU DON'T TAKE THE FULL 20 MILLION-DOLLAR BITE OF THE APPLE RIGHT OFF OF THE BAT IT ALLOWS YOU TO ISSUE MORE BONDS QUICKER IN A FUTURE ELECTION AUTHORIZATION. BUT OVERALL, I WOULD THINK OF IT, IN TERMS OF, AGAIN NOT BEING

[00:20:04]

STUCK IN THESE CAPACITY LIMITS AND WE CAN UPDATE IT CONTINUALLY.

>>> SO I AM HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE. THAT IS A LOT OF NUMBERS AND DIFFERENCES BETWEEN THE SCENARIOS SO I WANT TO MAKE SURE THAT EVERYONE IS FOLLOWING ME SO

FAR AND THERE AREN'T ANY QUESTIONS. >>> THANK YOU SO MUCH MARTY.

I GUESS CAN YOU TALK A LITTLE BIT ABOUT ONE OF THE THINGS, CONCERNING OR TOP OF THE MINE FOR ALL ALL CITIES IS BOND RATINGS AND WHERE WE THINK WE WILL BE TODAY VERSUS WHERE WE MAY BE NEXT YEAR END THE IMPACT ON THAT AND OUR ABILITY TO HAVE A REASONABLE RATE.

CAN YOU TALK ABOUT THAT. >> SURE. ABSOLUTELY.

THE GOOD NEWS IS THE CURRENT RATING ENVIRONMENT AS I MENTIONED MOST OF THE CITY, THE RATING AGENCIES HAVE HONED IN ON THE CITIES THAT ARE MOST IMPACTED BY WHAT IS GOING ON.

SO THE DEBT THAT IS, FOR SURVEILLANCE IS HOTEL OCCUPANCY RELATED DEBT.

MOST OF THE CLIENTS WE HAVE SEEN LATELY THERE HAS BEEN NO CHANGES TO THE RATING.

THANKFULLY HERE, I THINK IN THE NORTH TEXAS AREA THINGS HAVE MAINTAIN CONSISTENCY, SO WE WOULDN'T EXPECT YOU TO BE IMPACTED FROM A RATING PERSPECTIVE.

WHAT THEY ARE LOOKING AT IS THAT YOU ARE RUNNING SENSITIVITY ANALYSIS.

THEY WANT TO FEEL COMFORTABLE AND YOU ARE ALREADY DOING THIS AS PART OF YOUR BUDGET PROCESS AND PLANNING. THEY WANT TO FEEL COMFORTABLE THAT YOU ARE TRYING TO IDENTIFY POTENTIAL REVENUE SHORTFALLS. AND WHETHER YOU HAVE A PLAN TO MITIGATE THOSE OR WHAT YOUR PLAN

IS MOVING FORWARD. >> WE HAVEN'T SEEN ANYONE IMPACTED NEGATIVELY YET.

BUT AGAIN, THERE IS STILL A LOT OF UNCERTAINTY OUT THERE SO YOU KNOW, IRONICALLY, FROM A GETTING IN FRONT OF THE RATING PERSPECTIVE AND IN THE AGENCIES, A LOT OF OUR CLIENTS WHEN ASKED, WHAT ARE YOU EXPECTING TO HAPPEN, MOST ANSWERS HAVE BEEN WE DON'T KNOW YET.

NORMALLY THAT WOULD CAUSE CONCERN BUT IT DOESN'T SEEM TO HAVE BEEN IMPACTING ANYONE FROM

A RATING STANDPOINT NOW. AGAIN THAT IS TO YOUR ADVANTAGE. >> I WAS THINKING JUST AS MUCH ABOUT 2021. 2021 WE COULD BE IMPACTED BY PROPERTY TAX EVALUATIONS AND COLLECTIONS OF PROPERTY TAX AND SALES TAX COULD REALLY HAVE AN IMPLICATION.

WE HAVE HAD MANY DISCUSSIONS IN THIS GROUP, THE BAD NEWS IS WE ARE NOT REAL DIVERSIFIED, THE GOOD NEWS IS WE ARE HEAVILY RELIANT ON PROPERTY TAXES RIGHT NOW.

SO WE ALL REALIZE, THAT ROWLETTE IS A UNIQUE SITUATION RIGHT NOW. BY 2021, YOU SAID, YOU DIDN'T EXPECT SOMETHING TO IMPACT UNTIL 2022 BACK CONFUSE ME A LITTLE BIT.

SO I AM TRYING TO UNDERSTAND, 2021 AND 2022. >> WHILE I THINK IT IS JUST THAT THERE'S SO MUCH UNCERTAINTY AND THAT RIGHT NOW THERE HAS BEEN EFFORTS THAT HAVE -- I THINK FOR THIS YEAR MOVING INTO NEXT YEAR VERY ARE NOT EXPECTING, THE CORONAVIRUS WHEN IT HIT TIMING WISE IN TERMS OF THE PROPERTY EVALUATIONS IT DIDN'T HAVE A CHANCE TO RAMP UP TO HAVE A FULL EFFECT WHERE AS SALES TAX YOU ARE IMMEDIATELY SEEN A HIT. PROPERTY TAXES IN GENERAL, THE PROPERTY EVALUATIONS TYPICALLY LAG ANYWAY. SO THERE'S ALWAYS GOING TO BE A LAG WITH THAT. IN ADDITION, IT IS A LITTLE UNKNOWN OR UNDETERMINED AT THIS TIME BECAUSE THERE HAS BEEN PROVISIONS OF THE CARE ZACH THAT HAVE MITIGATE FORECLOSURES AND THERE'S NOT SUCH A HIGH CONCENTRATION ON THE FORECLOSURE ASPECT OR WHERE THE DIFFERENCES IN THE HOUSING MARKETS HAVE CREATED SO MANY DIFFERENCES THAT IT IS MORE OR LESS EXPECTING THOSE PROPERTY VALUE EVALUATIONS TO BE MODERATE. BUT IF ANYTHING THERE WILL BE A LAG WHICH IS WHERE I MENTIONED THE 2022 WHERE MOST IT SEEMS TO BE THE CONSENSUS AS THE MARKET

SHOWS WE WILL SEE THE LEGS IF WE DO SEE YOU THEN. >> AND THEN, IN TERMS OF, WHERE THE RATINGS GROWTH THEREAFTER IT IS IMPORTANT TO KEEP IN MIND TOO THAT THE RATE AGENCIES ARE BASING THEIR ASSESSMENTS OF YOUR RATINGS ON YOUR WILLINGNESS TO PAY AND MOVE FORWARD WITH YOUR DEBT. SO IF YOU WANTED TO ISSUE $100 MILLION TOMORROW, YOU

[00:25:03]

COULD. THAT HAS PRACTICAL LIMITATIONS,) BUT YOU AS A COUNCIL AND YOUR CONSTITUENTS VOTED ON THE $100 MILLION AND SAID YES WE WANT TO END YOUR RULING TO RAISE YOUR TAX RATE 5% THEN THE RATING AGENCIES WILL NOT VIEW THAT AS A PROBLEM UNTIL THERE IS PRACTICAL LIMITATIONS. YOU CAN'T GET TOO CRAZY WITH IT. IT IS A BALANCE OF WHAT YOU CAN REASONABLY AFFORD AND IT DOESN'T PUT TOO MUCH PRESSURE ON YOUR CONSTITUENCY.

THERE IS A VERY PRACTICAL LIMITATIONS THERE. BUT YOU ARE NOT IN ANY WAY, COMING CLOSE TO ANY LIMIT. SO WHETHER YOU ISSUE IT ALL NOW OR LATER, I MEAN PART OF YOUR CAPITAL PLANNING MODEL THAT WE ARE PRODUCING IS TO MAINTAIN A STABLE TAX RATE WHERE IT IS UNDER YOUR CURRENT TAX RATE. AND AGAIN IF YOU, EVEN IF YOU HAD A BOND ELECTION AUTHORIZATION AND YOU WENT TO THE PUBLIC AND SAID IT IS OUR INTENTION TO ISSUE THIS DEBT WITH NO INCREASE YOU'RE NOT OBLIGATED TO ISSUE THE BONDS AT ANY GIVEN TIME.

IF THEY DON'T MATERIALIZE AS YOU ANTICIPATE OR PLANT THEN YOU WILL DELAY YOUR ISSUANCE ACCORDINGLY. THE RATING AGENCIES WILL TAKE THAT INTO ACCOUNT WHEN THEY ARE

EVALUATING YOUR CRATING THE TRACK CREDIT RATING. >>> BRIAN YOU HAVE YOUR HAND

RAISED. >> KIND OF A QUESTION WITH MARTY JUST TO MAKE SURE THAT WE DISCUSS IT. ALL FOUR SCENARIOS THAT WE PRESENT, ALL WERE USING ROUGHLY $1,175,000 FOR INS PAYMENT FOR YEAR ONE. SO THERE'S NOT REALLY A DIFFERENCE THERE BETWEEN WHETHER WE ISSUED $10 MILLION OR $20 MILLION, SO THE POINT I AM TRYING TO MAKE IS, WE HAVE HAD A LONG-STANDING GOAL TO MAINTAIN AROUND 22 CENTS.

ONE HUNDRED DOLLARS VALUATION FOR THE INA'S RATE. WE APPARENTLY ARE DOING THAT STRATEGY WITH YOUR SCENARIOS. I JUST WANTED TO SAY, THAT IF WE WERE TO DROP TO $10 MILLION THIS YEAR END $10 MILLION NEXT YEAR, WE COULD ACTUALLY REDUCE OUR INS RATE, BY REDUCING THE PAYMENT ITSELF BETWEEN THE 10 MILLION VERSUS 20 MILLION IN YEAR ONE BUT WE BEAR THE RISK OF HAVING& TO INCREASE THE TAX RATE NEXT YEAR WHEN WE SELL THE OTHER $10 MILLION.

ASIDE FROM ALL OF THE OTHER MARKET RISK, THAT TO IS A RISK, WE DO NOT AGREE?

>> ONE 100%. I THINK THAT IS A GREAT WAY TO STATE THAT.

WE KNOW BECAUSE OF YOUR GROWTH BEING 6% VALUE THAT YOU HAVE FOR FISCAL YEAR 2020 AND 2021 THAT YOU HAVE CAPACITY FOR THE MONEY HENCE WISE FOR PURPOSES OF THESE MODELS WE HAVE FRONTLOADED, EVEN IF YOU ONLY DO THE 10 MILLION WE FRONTLOADED A PRINCIPAL TO KEEP THAT PAYMENT AT 1.175 MILLION LEVEL TO HIT THAT TAX RATE TARGET. THAT REDUCES THE ENTRIES YOU HAVE PAID OVERTIME AS WELL ON THAT THAT BEAR. IT KEEPS YOUR TAX RATE LEVEL.

IF YOU LOWERED THE PAYMENT, YOU WOULD RUN THE RISK, YOU WOULD RUN THE RISK OF HAVING TO COME BACK UP WITH YOUR TAX RATE, SHOULD YOUR VALUES NOT MATERIALIZE.

FINANCIAL THAT IS INTERESTING. WE HAVE NOT USE THAT AS A METHODOLOGY IN THE PAST.

WE USE THE TAX NOTES AS A METHODOLOGY BUT VARYING THE PAYMENT STREAM ACCOMPLISHES THE

SAME THING SO THAT IS A GOOD POINT. >>> MATT, YOU HAVE YOUR HAND UP

HERE. >> I MAY HAVE HEARD YOU WRONG SO CLARIFY FOR ME AND IN YOUR SCENARIO WHERE WE WENT TO TEN THIS YEAR END TEN NEXT YEAR DOES THAT MEAN YOU WOULD HAVE TO PUSH THE 2021 BOND ELECTION 22022 CAN WE DO IT NEXT YEAR END ISSUE A BOND ELECTION NEXT YEAR IS THAT WHAT YOU ARE SHOWING IN THE THREE YEAR ELECTION. I THOUGHT YOU SAID WE WOULD HAVE

TO MOVE THAT ELECTION BACK BUT I MAY HAVE MISUNDERSTOOD YOU. >> ACCORDING TO THIS ANALYSIS WE HAVE ASSUMED YOU WOULD MOVE THAT ELECTION BACK A YEAR SO YES, THAT IS CORRECT.

>> THAT IS OUR DECISION AND MARKET DECISIONS. >> YES.

YOU KENNELED A BOND ELECTION WHENEVER YOU ARE COMFORTABLE. YOU ARE NOT LOCKED IN BUT IT IS CERTAINLY AFFECTING THE INFORMATION AND DATA YOU CAN GIVE THE PUBLIC AND TERMS OF

YOUR EXPECTED TAX RATE. >> ON YOUR ESTIMATED POTENTIAL FUTURE CYCLES FOR BONDS WITH THAT BEAT THE SAME NUMBER IF WE DID IT IN 2021 IF YOU DID TEN AND TEN OR WOULD IT BE LESS IN

[00:30:03]

CYCLE ONE? >> IT GIVES YOU A LITTLE MORE IN CYCLE ONE BECAUSE YOU ARE PUSHING IT BACK A YEAR SO YOU ARE ISSUING LESS AND BREAKING YOUR ISSUANCE IN TWO YEARS AND

PUSHING BACK YOUR ELECTION. >> I'M SAYING IF WE DID IT IN 2021 IF WE DID THE SPLINT AND ISSUED MORE IN 2021. WOULD THAT, BE SMALLER OR LARGER IN THAT CYCLE ONE POTENTIAL

AMOUNT FOR A BOND. >> IT WOULD BE SMALLER THAN WHAT SHE IS CURRENTLY PRESENTING.

I WAS WONDERING WHEN IT BE AN ESTIMATE ON HOW MUCH SMALLER. NO, I DON'T HAVE THAT IN THERE BUT AS PART OF WHAT YOU ARE LOOKING AT IS IS SCENARIO 1B WHERE WE WOULD BE IN THEORY AS OPPOSED TO WAITING UNTIL 2022I WOULD SAY YOU PROBABLY COULD ISSUE, I DON'T KNOW BUT I AGREE

IT WOULD BE SMALLER YES. >> YOU KNOW MATT IT DOESN'T MATTER FOR THIS DECISION BECAUSE WHETHER WE ISSUED 20 MILLION NOW OR ISSUE TEN AND TEN. THAT SAME SCENARIO WILL EXIST IF WE DO A BOND OFFERING IN 2021. THE BOTTOM LINE IS OUR CAPACITY INCREASES FOR 2022 OR 2022 IF WE

DO TEN AND TEN VERSUS IF WE DID 20 AND 0. >> YOUR CAPACITY REALLY INCREASES WHEN YOU ARE INKING ABOUT HER OVERALL ELECTION CAPACITY.

I THINK YOU SHOULD FOCUS ON GROWTH WHETHER THEN SPLITTING BECAUSE YOU GET MORE OF THAT GROWTH IMPACT JUST THAT 1% IS WHAT CREATES ADDITIONAL CAPACITY MOVING FORWARD.

FOR EVERY 1% YOU GENERATE THAT IS MORE SIGNIFICANT THAN BREAKING UP THE FIRST ISSUANCE

INTO ONE OR TWO PIECES. >> I'M ALSO THINKING ABOUT ME AND WHAT WE HAVE AND THE FACILITY ASSESSMENT THAT HAVEN'T BEEN DONE. I KNOW WE WILL DO THE PROPER NEEDS THAT WE HAVE AND IF, AND WHERE THE TIMING WILL BE IN TERMS OF AS WE LOOK AT THE BONDS GOING FORWARD AND NOT LEAVING OURSELVES SHORT BECAUSE WE ISSUED MORE EARLIER SO MOST OF THE BOND GETS PUT IN BUT THAT LEAVES US SHORT FOR THE NEXT YEAR CYCLE WHEN WE REALLY NEED A MUNICIPAL CENTER. SO I AM JUST TRYING TO THINK ABOUT IT IN TERMS OF WHAT THE DIFFERENCES AND WHAT THE MARKET WILL DO WHEN YOU SAID 2022 IS WHEN YOU THINK THERE WILL BE MORE AND IT MAY BE MORE UNINSURED AND THAT MAKES ME THINK A LITTLE DIFFERENTLY THAN

WHERE I WAS GOING. >> WE ARE MAKING 820 MILLION-DOLLAR DECISION TODAY THAT DOESN'T NECESSARILY CHANGE WHAT WE DO NEXT YEAR AS FAR AS A BOND OFFERING.

FROM MY PERSPECTIVE THE QUESTION BEFORE YOU, AND REALLY WHAT I THINK, HOW COMFORTABLE DO YOU FEEL THE WAVES WILL BE IN A YEAR FROM NOW BECAUSE WE KNOW WHAT A MARKET ENVIRONMENT IS.

DO YOU -- IS IT SOMETHING YOU WANT TO GET STARTED ON, YOU KNOW IT IS AT A FUNDING LEVEL YOU KNOW WHERE YOU WILL END UP IN A STABLE POSITION. YOU SPLIT THAT AND THERE YOU HAVE THE UNCERTAINTY MOVING FORWARD. THE FUTURE WILL BE THE SAME AND INDEPENDENT OF THIS DECISION. THE QUESTION IS DO YOU FEEL COMFORTABLE MOVING FORWARD WITH THE FULL 20 MILLION KNOWING WHERE WE ARE TODAY OR DO YOU WANT TO BREAK IT UP AND CAUTION YOURSELF WITH FUTURE FLEXIBILITY KNOWING THERE ARE SOME INTEREST RATE RISK ASSOCIATED WITH THAT.

>> THAT IS HOW I SEE IT. I UNDERSTAND WHAT YOU ARE SAYING AND THOSE ARE IMPORTANT THINGS

BUT IT IS A DIFFERENT MATRIX. >>> ANY COMMENTS OR QUESTIONS? ANY OPINIONS.

[00:35:01]

>> WILL TO ME, WHEN WE ARE LOOKING KNOW THIS WAS WHAT I PLANNED ON MOVING AND SPLITTING BUT IF THE MARKETS ARE LOOKING GOOD NOW AND THEY ARE AT HISTORICAL LOWS I AM MORE FOR TAKING ADVANTAGE OF IT BECAUSE WE DON'T KNOW WHAT THE SITUATION IS.

THAT IS MY OPINION. >> HOW MUCH DOES THAT COST US IN REAL DOLLARS.

AND HOW DOES THAT OFFSET THE UNCERTAINTY. IF YOU COULD LOOK AT THAT REALLY QUICKLY WHILE WE TAKE OTHER COMMENTS WHAT IS THE COST FOR DOING THAT FROM AN INTEREST

STANDPOINT. CAN YOU LOOK AT THAT FOR US. >> WELL FOR PURPOSES OF WHAT WE HAVE PREPARED IN THE ANALYSIS YOU ARE PAYING MORE IN INTEREST BY SPLITTING IT UP, BECAUSE WE

HAVE USED A MORE CONSERVATIVE ISSUE ASSUMPTION. >> LOOK AT THE REAL DOLLARS ESTIMATED INTEREST RATES FOR THIS SUMMER AND THE INTEREST COSTS.

>> WHAT ARE YOU THINKING, WHAT IS THE INTEREST RATE YOU THINK YOU WILL HAVE.

>> RIGHT NOW, WE HAVE ESTIMATED IT AT 2.87%. WE HAVE SEEN ISSUES SELLING RIGHT NOW IN THE CURRENT MARKET FROM 2.3% TO 2.8%. MARTHA APPEARED.

>> I JUST HAD A QUICK QUESTION FOR BRIAN THAT I WANT TO CONFIRM.

DID YOU SAY WE HAVE ALREADY FUNDED THE DESIGN OR THE ENGINEERING FOR THE PROJECT.

I CAN'T REMEMBER THE EXACT NUMBER BUT IT WAS LIKE 1.9 MILLION THAT WE HAD ALREADY FUNDED. IT'S NOT ENOUGH TO FIX THE DRAINAGE ISSUES.

IT MAY NOT EVEN BY THE RUNWAY BUT IT WAS ENOUGH TO START THE DESIGN WORK.

AND WHAT WE WERE THINKING IS WE MAY, IF WE ENDED UP NEEDING THE MONEY SOONER, THEN WE COULD DO A TAX NOTE BUT WE WERE NOT SURE WE COULD COMPLETE THE RIGHT-OF-WAY BECAUSE THAT DESIGN HAS TO BE

DONE. WE ARE JUST GETTING STARTED. >> IS THERE ANY COUNTY

PARTICIPATION ON THAT PROJECT. I CAN'T REMEMBER. >> THERE IS A MILLER YOU MAY

REMEMBER. >> ARE YOU DONE MARTHA? >> YES.

>> WELL, SINCE WE DO NOT KNOW WHAT WILL BE HAPPENING IN THE FUTURE, I TAKE THE POSITION OF DOING IT NOW. THE TOTAL $20 MILLION. BECAUSE WE ARE NOT SURE WHAT WILL HAPPEN NEXT YEAR. THIS VIRUS COULD COME BACK AND THERE'S NO TELLING WHAT COULD

HAPPEN. >> IT IS VERY UNCERTAIN. THAT IS WHAT I AM GOING FOR.

>> THANK YOU PAM. >> I TAKE THE OPPOSITE APPROACH. I THINK BORROWING $10 MILLION OVER A ONE-YEAR PERIOD FOR SOMETHING WE DON'T NEED THE FUNDS FOR, I THINK THAT IS NOT A PRUDENT THING TO DO. I UNDERSTAND THE UNCERTAINTY IN THE MARKETPLACE.

BUT, I THINK THAT IS A LOT OF MONEY TO FLOW FOR $10 MILLION THAT WE WON'T BE UTILIZING RIGHT

NOW. >> I WOULD BE CURIOUS OF YOUR OPINION BRIAN AND WENDY'S.

>> MAYOR, ONE THING I SAY IS THAT, THERE IS A DIFFERENCE IF WE WERE TO ACTUALLY LOWER THE INS RATE TO DO THE $10 MILLION, ULTIMATELY IT IS ABOUT $2.8 MILLION IN INTEREST COST DIFFERENTIAL BY SPLITTING IT BUT LET ME SAY THIS, WE ORIGINALLY SERVED THE BONDS IN 2018 WITH THE IDEA WE COULD SPEND THE $20 MILLION. YEAR.

AND, I DON'T, BASED ON WHAT STAFF IS TELLING ME AND WHERE WE ARE WITH THE DESIGN TO THE POINT THAT WAS MADE EARLIER, WE WON'T SPEND THAT IN THE NEXT YEAR. WE WON'T EVEN SPEND THAT MONEY

[00:40:04]

UNTIL THE FOLLOWING YEAR ANYWAY. BUT I WOULD SAY THAT, THERE HAS BEEN A LONG-TERM STRATEGY THAT WE HAVE HAD TO MAINTAIN THE 22 CENTS FOR INS RATES AND I WOULD LOVE TO BE ABLE TO PRESERVE T THAT, WHETHER WE ISSUE ONLY TEN OR 20 BUT IF WE ARE GOING TO PRESERVE IT THEN I WOULD SAY ISSUE THE 20. IF OUR GOAL IS TO BET THE RATES FALL WHERE THEY ARE, I HAVE A HARD TIME, GOING INTO THE BUDGET PROCESS KNOWING WITH THE UNCERTAINTY AND TAX VALUE FROM JANUARY 1 THAT WE STILL MAY HAVE TO INCREASE THE TAX RATE NEXT YEAR.

THAT IS TO MAKE UP THE ADDITIONAL $10 MILLION. THAT IS MY STRUGGLE WITH IT

RIGHT THERE. >> WHEN YOU SAY TO .8 MILLION YOU MEAN OVER THE LIFE OF THE

BONDS? >> I AM MAYOR. >> $10 MILLION, THAT DOESN'T

MAKE ANY SENSE. >> WHAT I DID WAS I TOOK THE TOTAL PAYMENTS TO ADJUST OFFER ONE A WHICH IS 27 MILLION I TOOK THE TOTAL PAYMENTS IF WE SPLIT IT BETWEEN OPTION B, AND THAT WAS $29.5 MILLION. SO THE ADDITIONAL INTEREST WOULD BE 2,000,053.

>> REMEMBERED SHE HAS AN INTEREST KICKER IN THE SECOND >> YOU KNOW, WE TRIED TO.

>> I'M TRYING TO FIGURE OUT HOW TO SAY THIS CORRECTLY. WE TRY OUR BEST TO MANAGE THE TAX RATES AND WE ARE IN A DIFFERENT ENVIRONMENT RIGHT NOW. SO, I UNDERSTAND THE NEED TO PRESERVE THE INS TAX RATE BUT I ALSO UNDERSTAND THE FINANCIAL RESPONSIBILITY AND PRUDENCE WE NEED TO HAVE IN THIS ENVIRONMENT RIGHT NOW. NOT JUST IN THE INS RATE BUT THE MAINTENANCE RATE AND THE REGULAR RATE IT IS JUST A DIFFERENT WORLD THAN WHAT WE HAVE OPERATED

IN THE PAST YEARS. >> MY ONLY COMMENT IS THAT, I AM MORE CONCERNED WITH WHAT HAPPENS NEXT YEAR IF WE ALSO HAVE TO INCREASE THE TAX RATE TO COVER THE ADDITIONAL $10 MILLION.

I AM MORE CONCERNED ABOUT THAT THAN THE CONCERN THAT INTEREST RATES MAY RISE NEXT YEAR.

DO YOU HAVE -- WE ARE ALL CONCERNED ABOUT THAT. WHAT YOU THINK.

I AGREE WITH WHAT BRIAN HAS SAID. I AM REALLY CONCERNED ABOUT THE INCREASE OF THE TAX RATE NEXT YEAR, DUE TO ALLOCATING 10 MILLION THIS YEAR INSTEAD OF THE 20 MILLION, I WOULD PREFER STABILITY AND STAYING WITH THE 22 CENTS.

I'M ALSO CONCERNED THAT WE WO WOULD, POSSIBLY HAVE TO DELAY THE BOND CYCLE EVEN THOUGH THAT DECISION IS ADHERED BUT THAT IS A CONCERN OF MINE IN THE FUTURE. IF WE GO WITH THE $10 MILLION.

SO THOSE ARE MY CONCERNS. I AM KIND OF LEANING TOWARDS STAYING WITH THE 20 MILLION

BECAUSE OF THE RISK NEXT YEAR OF HAVING TO INCREASE THE TAX RATE. >>> WITH THAT, YOU WILL SAY YOU WILL ARTIFICIALLY HAVE A HIGHER TAX RATE THIS YEAR THAN THE INS RATE VERSUS THE FUNDS WE NEED TO

FUND CAPITAL IMPROVEMENTS. >> IT WOULDN'T BE RAISING IT WOULD BE STABILIZING.

>> WE CAN LOWER IT TO THE PENNY. >> I KNOW WHAT YOU ARE SAYING BUT, THEN WE HAVE TO COME NEXT&

YEAR END RAISE IT BACK UP. >> IT IS IN A BOND OFFERING. >> I GET BOTH SIDES, I DEAFLY DO BUT I AM LEANING TOWARDS NOT HAVING TO COME BACK NEXT YEAR END MAKE THAT DIFFICULT DECISION OF INCREASING THE RATE. THAT IS WHERE I AM MORE COMFORTABLE AT THIS POINT BUT I

GET WHAT YOU ARE SAYING. >>> SPEAK UP COUNSEL. >>> SORRY.

>> I HAVE LISTENED TO BOTH SIDES AND BOTH SIDES MAKE GREAT ARGUMENTS.

BUT I KIND OF FEEL LIKE WE SHOULD STAY THE COURSE. AND WE SHOULD TAKE THE MONEY OUT

[00:45:02]

NOW, BECAUSE I TWO AM NERVOUS ABOUT WHAT THE FUTURE HOLDS AS FAR AS WHAT RATES WILL DO NEXT YEAR WHAT PROPERTY VALUES WILL DO AND I WOULD HATE TO HAVE TO, DROPPED THE RATE EVEN THOUGH THAT MAY SEEM WHAT THE BEST THING TO DO AND GO BACK AND RAISE IT AGAIN.

THAT IS NOT SOMETHING, THAT IS NOT A BATTLE I WANT TO FIGHT. I WOULD RATHER, I THINK I WOULD LEAN TOWARDS ISSUING THE FULL AMOUNT THE SUMMER. THAT IS A DECISION SO YOU DON'T

HAVE TO. >> OR THE TAX RATE BY THE PUBLIC.

>> THE OTHER SIDE IS IF INTEREST RATES DOUBLE IT WILL PROBABLY BE THE SAME NOT.

>> WHAT IS THAT 1 CENT HAVE AN EFFECT ON EACH INDIVIDUAL, IT IS VERY MINIMAL.

>> HERE IS THE THING, BECAUSE OF WHERE WE THINK OUR TAX VALUE WILL END UP IN JULY WHEN WE GET

THE FINAL VALUES, WE WILL NOT BE ABLE TO SHIFTED IN, NOT LIGHTLY. >> WE WILL HAVE TO GET THE PROJECT DONE QUICKER. WE WILL HAVE TO ISSUE A TAX NOTE TO COVER MONEY WE MAY HAVE HAD IN THE BANK TOO. WE HAVE THAT ON TOP OF IT. I UNDERSTAND THERE IS A LOT TO

DO ON THAT BUT IF THERE'S ANY CHANCE WE COULD SPEED THAT UP. >> MARTY WHERE ARE THE RATES TODAY COMPARED TO ONE YEAR AGO AND TO YEARS AGO. IS THIS A FIRST TIME LO.

ARE WE WHERE WE WERE A YEAR AGO. >> AT THE BEGINNING OF THIS YEAR WE HIT AN ALL-TIME 63 YEAR LOW.

THEN WE HAD THE PANDEMIC MARKET MELTDOWN. AND THE MARKET ON ITS WORST DAY SHUTDOWN. SO YOU HAD NO MARKET ACCESS. THAT IS THE RESULT OF THE PANIC SO THERE WAS A LIQUIDITY PANIC AND PEOPLE STARTED SELLING OFF AND NO ONE COULD COME TO MARKET WITH NEW ISSUANCE. SO THE BIGGEST RISK IS YOU CAN'T ACCESS THE MARKET IF FOR WHATEVER HAPPENS, YOU CAN'T ACCESS THE MARKET AND INTEREST RATES SHOOT UP ACCORDINGLY BECAUSE NO ONE KNOWS WHAT THE PRICES ARE. SO THEY SPIKED AND THE TIMEFRAME WHICH MEANS EVERYONE PULLED OUT. AND THEN IT SLOWLY STARTED AS PEOPLE DIP THEIR TOE INTO THE WATER AGAIN AND IT REBOUND. THE MORE PEOPLE WHO FELT COMFORTABLE GOING TO MARKET THERE WAS MORE PRICE DISCOVERY. SO NOW WE ARE BACK DOWN TO THOSE LOWS.

THERE IS SO MUCH UNCERTAINTY GOING ON. NO ONE KNOWS WHAT IS GOING TO HAPPEN, IF THERE WILL BE A RESURGENCE OF THE VIRUS IF THERE WILL BE A SECOND ROUND OF STIMULUS FUNDING. ARE WE GOING TO GO BACK TO STAY-AT-HOME ORDERS.

THAT IS WHERE THE REAL CERTAINTY UNCERTAINTY COMES FROM. BUT IF WE WERE IN THE MARKET TOMORROW WITH YOUR BONDS WE WOULD BE AT YOUR LOWEST INTEREST RATE THAT YOU HAVE RECEIVED.

>> MAY BE A SYNONYMY WILL HIT DALLAS BECAUSE EVERYTHING ELSE IS HAPPENING.

>> AT THIS POINT WE CAN THROW THAT IN THERE. WE ALSO HAVE THE RIOTS.

BECAUSE EVEN WITH THE STAY-AT-HOME ORDERS LIFTED WE ARE STILL SEEN A SHUTDOWN.

OUR OFFICES JUST SHUT DOWN. WE JUST GOT BACK TO WORK AND THEY SHUT DOWN THE OFFICES AGAIN BECAUSE OF THE RIOTS. WE HAVE THAT GOING ON AS WELL. THERE'S JUST SO MUCH.

>> WENDY, I KNOW WE JUST WENT OVER AN INVESTMENT REPORT AND WE ARE BASICALLY EARNING NOTHING ON OUR REBALANCES. WHAT WOULD WE EARN ON THIS MONEY IF IT WERE SITTING, WHERE WOULD

YOU PUT IT AND WHAT WOULD IT EARN? >> AT FIRST IT WOULD GO AND THEN WE WOULD WORK WITH BASED ON THE TIMING OF THE PROJECTS AND RELY ON THEM TO GO OUT AND LOOK AT

[00:50:02]

THE BEST INVESTMENT RETURN FOR OUR MONEY, TO MAKE AS MUCH AS WE POSSIBLY CAN IN INTEREST.

>> UNDERSTAND, WHAT WOULD THAT BE IN TODAY'S ENVIRONMENT? >> I WOULD HAVE TO LOOK THAT UP.

LET ME LOOK AT THE LAST REPORT REALLY QUICKLY. >> TYPICALLY IT WILL BE PRETTY LOW BECAUSE IF THE INTEREST RATES COME DOWN WHICH IS GOOD, IT IS BAD FOR YOUR INTEREST

EARNINGS. >> IT WILL BE NEGLIGIBLE. >> RIGHT.

>> MAYOR, THEY REPORTED LAST WEEK BETWEEN 1.5 AND 1.75 IS WHAT WE WERE IN RANGE.

>> THAT IS ACTUALLY PRETTY GOOD. >> I DON'T THINK IT WILL BE THAT HIGH.

I'M NOT REMEMBERING THAT HIGH MARKS. >> WENDY CAN YOU VERIFY THAT?

>> TRICK -- BROWNIE SHERILL YOU HAVEN'T SPOKE. >> NO BUT I HAVE GONE BACK AND FORTH. I THINK I AM LEANING TOWARDS THE WHOLE 20 MILLION UPFRONT JUST BECAUSE THE UNCERTAINTY NEXT YEAR. WE DON'T KNOW WHAT WILL HAPPEN.

THE INTEREST RATES MAY BE UP OR THEY MAY BE DOWN, YOU NEVER KNOW.

I THINK I AM LEANING TOWARDS THE WHOLE BEING UPFRONT. >> THERE YOU HAVE IT.

>> THANK YOU, SIR. >>> SO, IT LOOKS LIKE I AM ON AN ISLAND BECAUSE I STRONGLY

DISAGREE WITH THAT APPROACH. IT SEEMS LIKE IT IS 6-1. >> WILL YOU CAN STILL CHANGE MY

MIND IF YOU WANT TO GIVE ME AN ARGUMENT. >> WHY -- THE REDUCING OF THE INS RATE ISN'T A BIG ENOUGH ARGUMENT FOR ME. I THINK WE CAN LOSE THAT IN AN

INCREASE IN THE RATES NEXT YEAR. >> $2.8 MILLION OVER THE LIFE OF THE BONDS.

ARTIFICIALLY INFLATING OUR TAX RATES HERE. >> MAYOR, THE $2.8 MILLION, I JUST WANT TO MAKE SURE WE UNDERSTAND, WE WOULD SPEND $2.8 MILLION MORE IN INTEREST OVER THE LIGHT -- MIKE LIFE THE BOND. SO, IF WE SELL THE BONDS AND INVEST IT, WE WILL MAKE LESS ON INTEREST INCOME THEN WE WILL SPEND.

BUT OVER THE LIFE OF THE BOND YOU WILL SPEND SO MUCH MORE IN THE EXTRA INTEREST OVER THE LIKE. I JUST WANT TO MAKE SURE THAT WAS UNDERSTOOD.

>> I THINK THAT IS HOW I WAS SAYING IT. >> I TOOK IT AS THE OPPOSITE BUT

THAT IS FINE. I MISUNDERSTOOD. >> LET ME SAY IT THIS WAY.

WE ISSUED THE WHOLE $20 MILLION THIS YEAR AS OPPOSED TO 10,000,010,000,000 AND IT IS CAUSING US TO $.8 MILION IN DEBT SERVICE OF THE LIFE OF THE BONDS.

>> I'M SAYING IF YOU SELL TEN NEXT YEAR AT AN INTEREST RATE OVER FIVE, THAT IS PROBABLY GOING TO BE FAIRLY EQUAL IN TERMS OF THE AMOUNT OF MONEY WE SPEND IN TERMS OF INTEREST ON

DEBT. >> THAT IS A DECISION YOU MAKE NEXT YEAR.

>> WE ARE MAKING THAT DECISION RIGHT NOW BECAUSE IF WE DON'T SELL ALL TEN THEY MAY HAVE TO SELL TEN NEXT YEAR OR WE DON'T ISSUE BONDS AND WE CONTINUE TO WAIT AND THEN WE ARE NOT DELIVERING ON THE PROJECTS WE PROMISED TO THE PEOPLE WHO VOTED FOR THESE PROJECTS.

>> THAT IS A DECISION YOU CAN MAKE BASED ON THE MARKET AT THE TIME.

RIGHT NOW, YOU ARE MAKING A DECISION FOR $10 MILLION OF FUNDS THAT WE KNOW WE CAN'T USE IN THE NEXT YEAR, JUST BECAUSE THERE MAY BE A SITUATION NEXT YEAR THAT COSTS US MORE MONEY.

WE MAKE THAT DECISION NEXT YEAR. IF IT IS A 5% INTEREST RATE WE DON'T ISSUE BONDS NEXT YEAR TO FINISH THE PROJECT WE WAIT ANOTHER SIX MONTHS OR NINE MONTHS OR 12 MONTHS.

BUT YOU ARE LOCKING YOURSELF INTO THE ADDITIONAL COST TODAY, ARTIFICIALLY INFLATING THE TAX RATE AND COSTING US $2.8 MILLION OVER THE LIFE OF THE BONDS FOR SOMETHING WE DON'T NEED TODAY

AND WE KNOW WE CANNOT USE TODAY. >> ON THE OTHER SIDE OF THAT THAT YOU JUST SAID WE GET TO NEXT YEAR WE ISSUE BONDS AND LET'S SAY THE MARKET IS NOT GOOD AND WE PUSH IT OFF ANOTHER YEAR AND NOW WE GET TO ISSUE BONDS AND WE ARE TWO YEARS LATER AND THE COST COME BACK UP.

>> WE NEED TO MAKE SURE WE HAVE THE MONEY TO GET THE PROJECT DONE, WHICH IS, TO ME WHAT THE VOTERS WANTED US TO GET DONE. NOW WE MAY HAVE TO TAKE OUT ADDITIONAL BOND MONEY.

[00:55:01]

THAT IS WHAT HAPPENED WITH GARLAND. THEY WILL HAVE TO TAKE OUT FUTURE BOND MONEY TO FINISH A PROJECT THAT THEY DIDN'T GET DONE BECAUSE OF DELAYS.

>> WE DON'T WANT THAT TO HAPPEN. >> I DISAGREE WITH THAT. THEY UNDERESTIMATED THE COST OF

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

WHEN YOU STACK THAT STUFF UP, I HEAR WHAT YOU'RE SAYING BUT AT THE END OF THE DAY, IT IS A BIGGER RISK WEIGHTING. I KNOW IT IS A HUGE NUMBER. IT IS A HUGE NUMBER BUT I DON'T WANT TO TAKE IT ON. I THINK IT WILL BE BIGGER IF WE WAIT.

>> I DON'T THINK IT IS A RISK WEIGHTING BECAUSE YOU MAKE A DECISION IN THE FUTURE.

WE HAVE SAID THAT ENOUGH. MARTHA, YOU HAVE YOUR HAND RAISED?

>> I DO. BACK TO THE PROJECT. >> AND THAT IS WHAT THIS IS

ABOUT. >> THAT'S WHAT THIS IS ABOUT. I DO HAVE A COUPLE OF POINTS TO MAKE ABOUT THAT AND QUESTIONS TO ASK. WE DON'T HAVE THE CAPACITY FROM MY UNDERSTANDING, BECAUSE OF THE MIDDLE ROAD PROJECT THAT WE ARE DOING TO MANAGE BOTH OF THE PROJECTS AT THE SAME TIME, IF WE WERE ABLE TO ACCELERATE THE CONSTRUCTION'S SCHEDULE.

ANOTHER QUESTION I HAVE IS, TYPICALLY, THE BIDS THAT WE GET ON THAT STUFF IS ONLY GOOD FOR SO LONG AND IF WE HAVE TO DELAY THIS PROJECT, I WOULD THINK THAT ANY INCREASE IN THE COST OF MATERIAL WILL HAVE TO BE FACTORED IN ANY WAY. I DON'T KNOW IF WE HAVE LOCKED IN PRICES RIGHT NOW, AND HOW LONG THEY ARE GOOD FOR. BUT I DOUBT, THEY WILL BE FOR

MORE THAN A YEAR. >> THE ISSUE IS IS NOT THAT WE DON'T HAVE THE CAPACITY TO MANAGE THE PROJECT, IT IS JUST WE ARE STARTING THE ENGINEERING AND BECAUSE THIS IS SUCH A COMPLEX PROJECT THE ENGINEERING WILL NOT BE COMPLETED FOR A WHILE.

THEN ONCE WE MOVE WE KNOW THE RIGHT-OF-WAY TO PURCHASE. THAT WAS WHAT WE WERE SAYING.

MOST LIKELY WITH THE EXCEPTION OF DESIGN ENGINEERING AND STARTING THE ACQUISITION, WE PROBABLY WON'T START SPENDING MONEY NOT ON CONSTRUCTION UNTIL LATE NEXT YEAR AND THAT IS EVEN

IF IT IS THEN PAIRED. >>> TO ME, THAT MAKES THE DECISION FOR ME.

I THINK I AM WITH THE MAYOR ON THIS. YOU KNOW, COUNSEL SOME YEARS AGO, KIND OF ROLLED THE DICE AND MAYBE THE SITUATION WAS DIFFERENT.

BUT OUR CITY GOT INTO A TOUGH POSITION, BY ISSUING BONDS THAT& DIDN'T GET SPENT.

>> IT HAS CAUSED A LOT OF PROBLEMS SO WE MAY BE IN A BOAT TOGETHER, JUST THE TWO OF US, BUT I THINK I WILL ROLL WITH THE MAYOR ON THIS ONE. I DON'T THINK WE NEED TO ISSUE

$10 MILLION THAT WE MAY SIT ON FOR TWO YEARS. >> WHAT PROJECT WAS THAT MARSHA -- MARTHA AND WHAT ARE THE ISSUES? STANDS ARE YOU THINKING PREVIOUSLY. I DON'T KNOW ALL OF THE DETAILS ON THAT I JUST KNOW, AND BROWNIE SHERILL YOU WERE AROUND MAYBE YOU CAN PROVIDE CONTENT. I KNOW IT WAS SEVERAL MILLION DOLLARS AND I KNOW THAT IT REALLY PUT OUR CITY IN A TOUGH FINANCIAL POSITION AND IT ATE UP

[01:00:04]

ALL OF OUR CAPACITY. >> THERE WAS A LOT OF DISTRESS TOO.

>> SO BECAUSE OF THAT, THERE WAS A SUBSEQUENT BOND OFFERING THAT THE PUBLIC DID NOT APPROVE IN THE 2015 BOND THAT WE PASS. ONE OF THE MAJOR GOALS WITH THAT WAS TO REGAIN THE TRUST OF THE PUBLIC THAT WHEN WE SAY WE WILL DO SOMETHING WE WILL DO IT. WITHIN THE TIMEFRAME WE SAID WE WOULD DO IT IN. CAN YOU PROVIDE THE CONTENT ON THE BOND OFFERINGS THAT ARE

SITTING IN THE BANK. >> JUST TO BE CLEAR. THE CHRONOLOGY IS NOT QUITE THE SAME THING. THE CITY AT THAT TIME WILL ISSUE A LOT OF BONDS.

WHEN I GOT HERE IN 2003 A LOT OF PROJECTS GOING ON. JUST ALL OVER THE CITY.

AND IT FAILED A COUPLE OF YEARS AFTER I GOT HERE ONE WAS TO START ALL FOUR PROPOSITIONS FAILED AND THAT SAME SUMMER WE ISSUED $50 MILLION IN BONDS A LOT OF PEOPLE THOUGHT THAT AFTER THEY VOTED NO, THAT COUNSEL ORDERED BONDS. THAT IS WHERE A LOT OF OF EMOTIONS CAME INTO PLAY SO AFTER THAT WE DIDN'T ISSUE BONDS AGAIN UNTIL AS YOU SAID, 2015.

BUT ALSO BY THEN WE BUILT UP OVER $100 MILLION IN CASH MOST WAS BOND MONEY BECAUSE WE WERE NOT SPENDING IT FAST ENOUGH. SO YOU ARE CORRECT ON THAT AND THAT CAUSED A LOT OF ISSUES AT

THE TIME. >>> BEARS A, A DIFFICULTY IN MY OPINION OF GOING TO THE VOTERS IN 2021 AND SAYING, WE ISSUED $10 MILLION OF BONDS LAST YEAR END WE ARE STILL SITTING ON THE $2 MILLION IN CASH AND WE KNEW WE WOULD NEED THE CASH WHEN YEAR AGO BUT NOW WE WILL DO ANOTHER THREE YEAR BOND OFFERING AND WE WANT YOU TO APPROVE THAT. WE WILL ALSO ISSUE THE BOND IN THE SUMMER OF 2021. I JUST THINK THAT IS A HARD STORY.

>>> I UNDERSTAND THE UNCER UNCERTAINTY, BUT THERE'S ALWAYS UNCERTAINTY IN THE MARKETPLACE.

THE PANDEMIC COULD EXIST, LIKE IT EXIST TODAY AND WE COULD HAVE A VIABLE BOND MARKET WITH CHEAP INTEREST RATES. IT COULD BE THE CONSTRUCTION INDUSTRY CONTINUES TO GO DOWN AND CONCRETE CONTINUES TO DECREASE AND WE HAVE THE ABILITY TO BID PROJECTS EVEN LOWER IN THE FUTURE. I FEEL LIKE WE ARE TALKING OFF BOTH SIDES OF OUR MOUTH.

YOU SHOULDN'T WAIT, WE NEED TO DO THESE PROJECTS AS FAST AS POSSIBLE BECAUSE CONSTRUCTION COSTS COULD GO UP BECAUSE THE MARKETPLCE COULD BE GOOD BUT WE ALSO SAY WE NEED TO DO THIS BOND NOW BECAUSE, THE MARKET COULD FALL APART BECAUSE THE ECONOMY COULD BE BAD.

THOSE ARE OPPOSITE SIDES OF THE ARGUMENT. SO, TO ME, I JUST LOOK AT THE DECISION-MAKING AND IT IS A TIME AND PLACE AND WHEN NEEDED IT IS THIS BIG OF A FACTOR IN THIS MUCH MONEY AND THIS KIND OF OPTICS I HAVE A HARD TIME KNOWING, WHAT IF, I HAVE A MUCH CLEAR MIND GOING THIS IS WHAT THE SITUATION IS TODAY AND THIS IS THE RIGHT DECISION FOR TODAY.

>> YOU HAVE YOUR HAND UP? >> I THINK EITHER WAY, WHICHEVER DECISION WE MAKE, THE PROJECT IS LIKELY GOING TO COST MORE THAN WHAT WAS BUDGETED IN THE BOND. FROM MY UNDERSTANDING THE RIGHT-OF-WAY WASN'T REALLY THOUGHT ABOUT WHEN WE WENT WITH THE $36 MILLION BUDGET FOR THIS PROJECT. SO IT WILL LIKELY COST MORE THAN WHAT WE HAVE ALREADY BUDGETED.

[01:05:01]

HOWEVER I THINK THE REAL ISSUE, GOING BACK, THE REAL ISSUE FOR ME IS COMING BACK NEXT YEAR, INCREASING THE RATE. WHEN IT IS PRETTY LIKELY, ONE 100% THAT WE ARE STILL GOING TO HAVE THE CORONAVIRUS ISSUE BECAUSE VACCINES WON'T BE CREATED UNTIL PROBABLY OCTOBER OR SOMETIME IN THE FALL. WE WILL STILL HAVE THE PANDEMIC ISSUE.

AND THE, SO, NEXT YEAR, THE PANDEMIC IS STILL THERE AND NOW IT IS INCREASING INSTEAD OF KEEPING IT THE SAME. SO NEXT YEAR IT COULD BE -- WE COULD BE IN A MUCH WORSE CONDITION NOT JUST BECAUSE OF THE RATES BUT THE INTEREST. SO, I GET WHAT YOU ARE SAYING.

I AM STILL, WITH THE $20 MILLION RIGHT NOW JUST TO SECURE IT WHERE IT IS AT THE CURRENT RATE

TODAY. >>> THANK YOU. MARTHA YOU STILL HAVE YOUR HAND

UP. >> YOU ARE MUTED WHEN D. THE RATE ON THE BOND WAS --

>> SO THE MONEY INVESTED WAS NOT USED WAS 1.66. >> YES.

THAT COULD BE LOWERED GIVE -- WE ARE WAY OVER TIME. WE -- DO YOU WANT TO DO A VOTE? WE CAN'T VOTE WITH THE WORK SESSION BUT THE IDEA WAS CONSISTENT AND WE WOULD BRING IT

BACK FOR COUNSEL TO VOTE ON. >> ANY OTHER DISCUSSION ANYONE WANTS TO HAVE.

I WOULD NOT PUT IT THERE. WELL MARTY THANK YOU SO MUCH. THANK YOU FOR THE LENGTHY DISCUSSION THANK YOU FOR THE INFORMATION AND EXPERTISE IN A DIFFICULT ENVIRONMENT.

>> THANK YOU FOR HAVING ME. I APPRECIATE IT. >> ALRIGHT COUNSEL.

>> I GUESS WE WILL MOVE TO THE NEXT SEGMENT. >> MAYOR I WOULD PREFER DOING IIIC FIRST. THREE A IS MORE OF AN UPDATE. 3C COULD HAVE SOME

[3C. Discuss Coronavirus Aid, Relief, and Economic Security (CARES) Act funding and possible uses and take any necessary actions. (45 minutes)]

DECISION-MAKING. >> LET'S DO 3C. DISCUSS AID RELIEF AND ECONOMIC

SECURITY, CHARISMATIC FUNDING AND NECESSARY ACTION. >> THERE HE IS.

I DID NOT SEE HIM SORRY. >> OKAY. WHO IS GOING TO START THIS.

>> I WILL MAYOR, I'M JUST WAITING. HERE WE GO.

>> LET'S GO TO THE NEXT SLIDE. JUST A COUPLE OF THINGS REALLY QUICK, IT IS MORE FOR THE PUBLIC BUT JUST TO RECOGNIZE THE FACT THAT WE ARE AT THIS POINT, TALKING ABOUT A 2 TRILLION-DOLLAR ECONOMIC PACKAGE THAT THE FEDERAL GOVERNMENT HAS APPROVED, IT WAS APPROVED ON MARCH 27 WHICH PROVIDES FUNDING FOR AMERICAN WORKERS, FAMILIES AND SMALL BUSINESSES. AND THERE IS A PORTION THAT IS DIRECTLY RELATED TO STATES,

COUNTIES AND CITIES. NEXT LINE. >> SO, WE TALKED MAYOR ON FRIDAY ABOUT HOW THE FUNDS CAN BE USED. THERE ARE SIX MAJOR CATEGORIES AND THERE IS A PORTION OF THIS THAT, A PORTION OF THE FUNDS WE RECEIVE THAT WILL BE LIMITED ON& HOW MUCH WE CAN SPEND ON ITEMS FOUR, FIVE AND SIX BUT A LARGER CHUNK HAS NO LIMITATION EXCEPT THESE ITEMS.

>> NEXT SLIDE. >>> IT COMES WITH PROHIBITED EXPENSES, THINGS YOU CAN'T SPEND

MONEY ON, SO THOSE ARE THOSE CATEGORIES AS WELL. >> NEXT SLIDE.

>> AND THEN JUST TO ACKNOWLEDGE THE WAY THIS IS WORKING, THERE IS A.

CAPITA ESTIMATE BASED ON POPULATION AND, BETWEEN ROCKWELL COUNTY, THE SIDE OF RAW LAND, THOSE FUNDS WILL BE DISTRIBUTED BY THE STATE, IT'S ABOUT $439,000.

THAT IS THE ONLY SECTION THAT HAS A LIMITATION OF 25% LIMIT OR CAP I SHOULD SAY ON THE

[01:10:02]

CATEGORIES 4-5 AND 6. IN DALLAS ON THAT SIDE IT WOULD BE $3.2 MILLION WHICH CAN BE

USED IN ALL SIX CATEGORIES ARE A TOTAL OF $3.7 MILLION. >> THE NEXT LIKE.

>> ALL, JUST TO MENTION IN OUR MEETING ON FRIDAY, THE CITY COUNCIL DID, AT THAT POINT, DETERMINED THAT IT WANTED TO COMPLETE THE INITIAL ROBUST RENT -- GRANT.

THERE WERE $568,000 IN REQUEST AT THAT TIME, WE HAD, THIS IS BEFORE WE KNEW ALL THE CARES ACTIVE MONEY WOULD BE DISTRIBUTED. WE ESTABLISHED $100,000 IN FUNDING FROM OTHER SOURCES IN OUR BUDGET AND THAT LEFT ABOUT 468,000 THAT WAS UNFUNDED.

AT THIS POINT WITH THE ROBUST GRANT, THE CARES ACT WOULD PROVIDE THE ADDITIONAL FUNDING AND COUNSEL DETERMINED IT WANTED TO PROCEED WITH THAT AND CERTAINLY TO REQUEST FROM THE BUSINESSES TO MAKE SURE THEY STILL WANTED TO MOVE FORWARD WITH THOSE GRANTS AS WELL.

THIS PARTICULAR ONE WOULD OFFER UP TO $10,000 FOR EACH BUSINESS AND IT CAN BE USED FOR PAYROLL,

LEASE PAYMENTS OR UTILITIES. >> NEXT SLIDE. >>> SO, YOU WILL REMEMBER THIS LIKE COUNSEL. WE DISCUSSED A GENERIC ALLOCATION TO START WITH.

ROUGHLY 25%, WE WOULD ASSIST INDIVIDUALS WITH MORTGAGE SMALL BUSINESSES SUCH AS THE ROBUST GRANT AND NONPROFITS. THE DECISION POINTS THAT WERE MADE OUT OF THESE FOUR CATEGORIES WAS TO MOVE FORWARD WITH THE ROBUST GRANT AND TO SET ASIDE 25% FOR DIRECT CITY COSTS RELATED TO THE PANDEMIC AND TO PRESERVE 25% TO PROVIDE FLEXIBILITY DURING THE SECOND SURGE. IF THERE IS NOT WE COULD SPEND MORE ON THAT IN THE COMMUNITY NOW BUT WE WANTED TO AT LEAST LAY THIS OUT TO SEE WHERE IT GOES WITH SOME OF THE FUNDING DECISIONS WITH THE POINTS WE HAVE MADE. TONIGHT WE WILL DISCUSS THE STRATEGY THAT REQUIRES ASSISTANCE TO NONPROFITS. WE ARE STILL WORKING ON ITEMS WITH THE SALVATION ARMY TO UPDATE THE PROGRAM CRITERIA WHICH IS WHAT WE WERE GOING TO USED TO HELP INDIVIDUALS WITH RENTAL MORTGAGE ASSISTANCE AND UTILITIES AND THIRD-PARTY ASSISTANCE TO HELP ADMINISTER DIRECT FUNDS TO PEOPLE IMPACTED BY THE PANDEMIC.

>> MY UNDERSTANDING WE WOULD HAVE SOME FEEDBACK TONIGHT ON THE NONPROFITS, SO I WILL OPEN

THAT UP. >> WE ARE GOING TO TALK ABOUT THE SMALL BUSINESS TOO.

AND YOU MENTIONED THIS BRIEFLY BUT FOR THE SAFE OF THE -- SAKE OF THE PUBLIC, THERE WAS A LENGTHY COUNCIL MEETING LAST WEEK THAT WE COVERED ALL OF THI& INFORMATION IN GREAT DETAIL.

SO PLEASE REFER BACK TO THAT FOR ADDITIONAL BACKGROUND INFORMATION.

SO I THINK, JUST TO REITERATE, WE HAD TALKED ABOUT INDIVIDUAL ASSISTANT PROGRAMS FOR HOUSING AND UTILITIES AND THAT WOULD BE BOTH LEASE AND RENTALS AS WELL AS MORTGAGE ASSISTANCE PROGRAMS AND ADMINISTER THOSE THROUGH THE SALVATION ARMY. WHAT I WANT THE PUBLIC TO UNDERSTAND, WE HAVE PUBLICIZED THIS ON OUR CITY PAGES AND THERE'S A RENTAL AND HOUSING AND MORTGAGE AND RENTAL HOUSING ASSISTANCE PROGRAM RIGHT NOW, BEING OFFERED BY DALLAS COUNTY, SO IF YOU ARE IN THE DALLAS COUNTY SIDE AND YOU THINK YOU MAY QUALIFY, MEANING YOU HAVE YOU ARE AT CERTAIN INCOME LEVELS IN YOUR HOUSEHOLD, GO OUT THERE AND LOOK AT THOSE PROGRAMS AND PLEASE APPLY. ONE IS BEING ADMINISTERED THROUGH CATHOLIC CHARITIES AND

ONE THROUGH, SOMEBODY HELP ME,. >> I JUST NOTICE IT STARTS OFF LIKE THIS.

>> YOU CAN APPLY FOR BOTH OF THOSE. IF YOU QUALIFY, IF YOU GET IN THE LOTTERY FOR ONE OF THEM THEY BOTH HAVE THE SAME QUALIFICATIONS.

IF YOU GET IN ONE LOTTERY THERE'S NOTHING WRONG WITH APPLYING FOR BOTH OF THEM.

WE HAVE TO AS A CITY KEEP PUSHING OUT THAT THAT PROGRAMS OUT THERE AND AVAILABLE FOR

[01:15:01]

RESIDENTS. AS SOON WEEKEND THE HOUSING AND UTILITY PROGRAM UP AND RUNNING

FOR EVERYONE CITYWIDE WE WILL PUSH THAT OUT TO THE PUBLIC. >> THEN, DO YOU WANT TO GO TO THE BUSINESS GRANTS OR THE NONPROFIT. WHICH ONE DO YOU WANT TO GO TO

FIRST. >> IT DOESN'T MATTER. I HAVE COVERED THEM ALL.

>> SO LET ME TURN THAT DOWN. I HAVE A HELICOPTER ON TOP OF THE HOUSE.

>> THE NONPROFITS WE WILL NEED MORE TIME TO DISCUSS THAT. SIMPLY BECAUSE WE FOUND OUT TODAY THERE WERE NEW REQUIREMENTS THAT CAME OUT FROM DALLAS COUNTY AND OTHERS WE MAY HAVE TO COMPLY WITH. SO WE WILL NEED MORE TIME TO REWORK THAT ONE.

THE, ROBUST GRANT,. >> CAN YOU STOP WITH THE NONPROFIT FOR JUST A SECOND

PERIOD. >> THANK YOU SIR. >> I JUST WANT TO MAKE SURE YOU ARE NOT SAYING THAT BECAUSE OF WHAT I HAVE COMMUNICATED TO YOU AND MAYBE I COMMUNICATED WHAT I HEARD IN THE MEETING WAS THAT THERE WERE RESTRICTIONS ON CARES FUNDS FOR NONPROFITS AND CHILDCARE OPERATIONS. I DIDN'T HEAR THE RESTRICTIONS FOR NONPROFITS.

>> AND YOU ARE RIGHT. BUT I GOT AN E-MAIL FROM ED THAT THERE WERE SOME OTHER ISSUES THAT WERE IDENTIFIABLE WITH WHAT WE WERE APPROVING UNDER THAT THAT NEEDED TO BE RE- LOOKED AT.

>> SO THERE WERE, FIVE DIFFERENT THINGS THAT WE PROPOSE THAT WE WOULD COVER UNDER THAT GRANT AND

SOME OF THEM WE NEED TO GO BACK AND LOOK AT AGAIN. >> I WANT TO ASK A BASIC QUESTION AND. IS THERE A RESTRICTION ON NONPROFITS?

>> THE COUNTY CAN PLACE RESTRICTIONS IF THEY FEEL THAT IS WHAT THEY NEED TO DO BUT REGARDING THE NONPROFITS ELIGIBILITY THERE IS NOTHING IN GUIDANCE THAT I SEE THAT WOULD ELIMINATE THEM FROM BEING ELIGIBLE FOR RECEIVING CERTAIN TYPES OF FUNDING RESTRICTED TO THE TYPE OF FUNDING AND WHAT PURPOSE IN REGARDS TO THE CHILDCARE, I DON'T -- HE SAID NONPROFITS, EVERY NONPROFIT WOULD BE INELIGIBLE. THAT IS WHY CERTAIN CHILDCARE ELEGY -- AGENCIES CAN'T GET FUNDING. I DON'T BELIEVE THAT IS THE CASE BUT IF THAT IS WHAT DALLAS DECIDED WE HAVE NO CHOICE BUT TO ABIDE BY THAT.

IN TERMS OF WHAT THE STATE IS SAYING THERE IS NOTHING THAT WOULD ELIMINATE A NONPROFIT FROM RECEIVING ASSISTANCE. THE ARGUMENT IS FEMA OFFERED SOME NONPROFIT ASSISTANCE BUT THAT WOULD ELIMINATE US FROM BEING ABLE TO RECEIVE CERTAIN FUNDING THROUGH THE PROGRAM.

I'M HAVING TROUBLE UNDERSTANDING THEIR LOGIC. THERE IS A MEMO THAT WAS MENTIONED DURING THE MEETING I HAVE NOT SEEN IT I HAVE REQUESTED IT, BUT UNTIL WE SEE THEIR LOGIC AND HOW THEY ARE INTERPRETING IT AND WHO THEY ARE CONTACTING WITH THE TREACHERY I

CANNOT SAY YES OR NO. BUT AGAIN -- >> IT HELPS ME TOO UNDERSTAND WHERE WE ARE. THAT WAS NEW INFORMATION FOR ME TODAY.

>> OKAY. >> WITH THE GUIDANCE WE GOT FROM THE TREASURY THEY SPECIFICALLY CALL OUT THE FOOD BANKS AND HELP FOR THE HOMELESS AND THE MOST VULNERABLE POPULATION.

A LOT OF TIMES THAT IS NONPROFITS THAT HELP TO DO THAT KIND OF WORK.

THAT IS SOMEWHAT OF A SURPRISE. >> THE OTHER STATEMENT MADE WAS, WE CANNOT USE CARES FUNDS IF AN EXPENSE QUALIFIES FOR FEMA. THAT IS NOT HOW WE INTERPRET IT BEFORE, IS THAT CORRECT?

>> IT IS A DIRECT CONTRADICTION TO HOW THE STATE IS INTERPRETING IT.

I DON'T BELIEVE DALLAS COUNTY IS BEING VERY TRANSPARENT AND HOW THEY ARE INTERPRETING THE TREASURY AND I THINK WE NEED TO HAVE THAT ACCESS ON HOW THEY ARE DOING IT.

>> SOMETHING NEW THE STATE AND DALLAS COUNTY DISAGREE NOT SOMETHING, NO.

>> YOU SOUNDED FACETIOUS THERE MATT. >> IT HAS BEEN A LONG DAY.

>> I'M GOING TO MUTE YOU. >> IT'S GOOD. >> OKAY, SO THIS IS, THIS

[01:20:15]

IMPORTANT, IT'S IMPORTANT TO OUR CITY AND COMMUNITY AND INDIVIDUALS.

IT'S GREAT WE HAVE THESE FUNDS, IT IS SO DANG FRUSTRATING THAT EVERY TIME WE TURN AROUND, WE GET NEW INFORMATION AND CONTRADICTORY INFORMATION. I'M IN -- I MEAN, I CAN'T THANK YOU AND YOUR TEAM ENOUGH FOR WORKING THROUGH THIS. WE DON'T HAVE AN ANSWER RIGHT

NOW. >> UNFORTUNATELY I DON'T THINK WE HAVE THE ANSWERS WE NEED ON

THIS JUST YET. >> ALL RIGHT. THANK YOU FOR LETTING ME PAUSE

ON THE NONPROFITS FOR A MINUTE. >> SO ON THIS WE DID GET AN E-MAIL FROM A MICHAEL TODAY THAT SAID, THEY HAVE MORE DEFINITION AS FAR AS NUMBERS ARE CONCERNED. THEY HAVE 77 ADDITIONAL GRANTS

AND A TOTAL OF $392,000, $392,512,000. >> THE TOTAL ASK FOR THE TOTAL

VETTED? >> THE TOTAL VETTED. >> THAT IS AMAZING.

SOMEONE HAS BEEN WORKING HARD. >> SOME OF THOSE, THEY HAVE JUST A FEW.

THEY HAD SWAG BECAUSE THEY ARE NOT ALL THE WAY DONE YET. BUT THAT IS PROBABLY THE MAXIMUM

AMOUNT THAT WE WOULD NEED TO APPROPRIATE FOR THAT. >> AGAIN THAT IS 392512.

>> THAT WOULD BE ON TOP OF THE $100,000 WE HAVE DONE. >> THAT'S CORRECT.

>> OKAY THANK YOU. >> SO, ANY DISCUSSION COUNCIL? WE HAVE HAD MANY DISCUSSIONS

ABOUT THIS UP TO THIS POINT. >> ANY CONCERN THAT THIS PROGRAM REQUIREMENTS ARE AN ISSUE WITH

THE CARES FUND? >> SEE IF HE GIVES ME A DEFINITIVE ANSWER.

>> IS IT THE COUNTY WHERE THE STATE? >> I'M ASKING AND.

>> I THINK THE BEST COURSES DO NOT MOVE AHEAD WITH ANY OF THE& ROBUST FUNDING UNTIL WE GET AN ANSWER FROM THE COUNTY. AS WITH ANY EXPENDITURES, IT IS UP TO THEM TO DETERMINE ELIGIBILITY PIXEL IF IT WILL TAKE LONGER, I THINK TO REDUCE THE RISK OF THAT BEING THE OBLIGATION BY DALLAS COUNTY OR THE TREASURY, SO WE HAVE DALLAS COUNTY'S PREAPPROVAL FOR

ANYTHING THAT WE DO, ESPECIALLY THIS. >> WE SUBMIT OUR PROPOSAL TO CHARLES REED, THE CONTRACTOR AND THAT IS BOTH FOR THE 80% REMAINING AND THE 20% ALLOTMENT THEY ALREADY MADE TO US. THIS AFFORDS US THE ABILITY, ONCE THEY GIVE US THE GO-AHEAD TO IMPLEMENT IT IMMEDIATELY INSTEAD OF WAITING FOR REIMBURSEMENT.

>>> ALL RIGHT, SO, IN YOUR SPARE TIME AND,. >> I WILL WORK WITH AND.

>> YOU HAVE YOUR HAND UP. >> YES, MA'AM. THIS IS SOMETHING THAT I READ IN THE DOCUMENT THAT RAISES A RED FLAG FOR ME AND IT MAY BE MY COMMAND OF THE ENGLISH LANGUAGE.

BUT UNDER EXCLUSIONS YOU HAVE PRIVATE FOUNDATIONS AND YOU SAY ARE SPECIFICALLY INCLUDED.

SPECIFICALLY RAISES A RED FLAG FOR ME. THEN YOU GO DOWN TO THE THIRD CARES INITIATIVE PROGRAM WILL NOT FUND THE FOLLOWING, AND YOU HAVE A LIST THERE.

IT SEEMS TO ME THAT SPECIFICALLY IT SHOULD BE MOVED BECAUSE, IT SEEMS TO LIMIT EVERYTHING AND

THESE TWO SHOULD BE TOGETHER. >> LET ME TELL YOU HOW THAT IS DESIGN.

WE CAN REMOVE THE WORD SPECIFICALLY. THAT IS ITS CONSEQUENTIAL TO THE STATEMENT. DENOTES TYPES OF 5O1C ORGANIZATIONS.

THERE ARE 30 DIFFERENT TYPES OF 5O1C ORGANIZATIONS UNDERNEATH THE 501.

SO THAT IS, WE TALKED ABOUT IT IN OUR GROUP SENT SUBCOMMITTEE. THOSE ARE THE DIFFERENT ONES WE AGREED WE DID NOT WANT TO FUND. THAT IS WHAT THAT STATEMENT IS FOR.

THEN WE MADE ANOTHER GENERALIZATION STATEMENT IN AN EXERCISE WE WENT THROUGH THAT

[01:25:03]

SAID GIVEN THE TYPES OF 5O1C GROUPS, THAT ARE ALLOWED TO APPLY, THESE ARE THE THINGS WE DON'T WANT TO BE ABLE TO FUND THROUGH THIS. THAT IS WHAT THE SECOND LIST IS ON PAGE THREE. , OKAY, I WAS SEEING IT INTO DIFFERENT PLACES THAT IS WHY I

ASKED THE QUESTION. >> THAT IS WHY IT IS THERE. >> OKAY.

>> ANYTHING ELSE. ANYTHING ELSE WHITNEY, I WILL WORK WITH ED TO SEE IF WE CAN GET SOMETHING AFFIRMATIVE FROM THE COUNTY ON THIS PROGRAM BECAUSE WE HAVE ALL OF THE DATA.

SO WE CAN -- IF NOT SOONER, AND I WILL BE READY TO MOVE FORWARD WITH THAT.

AND KEEP YOUR. >> WE TRYING TO WORK AS FAST AS WE CAN.

IT IS A PROCESS. >> WHEN YOU DO THAT MAKE SURE THE HUNDRED THOUSAND DOLLARS AS

SPECIFIED ALSO. >> I DON'T KNOW IF YOU HAVE TO SPECIFY IT SEPARATELY.

WE CAN INCLUDED AS A PACKAGE DEAL. I THINK IT IS PAST THE DATE IN

QUESTION. >> I WOULD JUST SAY, JUST A GENERAL EDITORIAL COMMENT THAT I JUST WANT TO EXPRESS, MY GRATITUDE FOR THE HARD WORK THAT HAS BEEN PUT INTO PUTTING THESE PROGRAMS TOGETHER AND IT IS SOMEWHAT FRUSTRATING AND DISAPPOINTING THAT WE HAVE PEOPLE NEEDING THESE FUNDS, THAT THEY ARE ALLOCATED FOR AND WE HAVE THIS KIND OF THE DELAY.

SO MY HOPE IS THAT DALLAS COUNTY WILL PROVIDE THE DOCUMENTATION THAT WE NEED, THE GUIDANCE SO WE

CAN GET THESE PROGRAMS ROLLED OUT. >> THE NEXT TIME YOU ARE ON A CALL WITH CLAY CAN YOU PULL HIS EAR FOR US. DON'T SAY ANYTHING BACK.

I ECHO MARTHA'S SENTIMENT. THE NONPROFIT IS FRUSTRATING BECAUSE THAT IS THE FIRST TIME IT HAS COME UP. THEY SAID ALL ALONG THEY HAVE TO APPROVE OUR PROGRAM PERIMETER.

WE HAVEN'T EVEN GONE TO THEM WITH OUR SMALL BUSINESS GRANT. SO WE HAD TO FIGURE OUT WHAT THE DOLLARS WERE WHICH WE RECENTLY DONE. I ECHO WHAT MARTHA SAID, THE GROUP THAT HAS BEEN WORKING ON THAT HAS PROBABLY BEEN WORKING THEIR BUTTS OFF TO GET THERE.

I DON'T WANT THE PUBLIC TO MISUNDERSTAND IS NOT LIKELY PRESENTED TO DALLAS COUNTY AND THEY ARE SITTING ON IT. WE WILL PRESENT IT QUICKLY. I DIDN'T WANT TO MISREPRESENT

THAT. >> WE WILL DO OUR BEST. >> YOU ARE CORRECT MAYOR BUT I THINK IT IS IMPORTANT TO POINT OUT IN DALLAS COUNTY HAD ACTED QUICKER TO GET PERIMETER SAID WE

WOULD BE ABLE TO GET THE MONEY TO THE PEOPLE WHO NEEDED. >>> NOTHING HAS MOVED FAST ON

THIS,. >> NOTHING HAS MOVED FAST. >> ONLY TIME.

>> OKAY ARE WE DONE WITH THAT? >> YES. >> BRYANT WE STILL HAVE 15.

[3A. Discuss the COVID-19 event and take any necessary action. (20 minutes)]

DO YOU WANT TO DUE TO A. >> I WILL JUST HIT SOME OF THE HIGHLIGHTS BECAUSE MOST OF THE

INFORMATION COUNCIL IS AWARE OF. >> I WILL READ IT. DISCUSS THE COVID-19 EVENT AND

TAKE NECESSARY ACTION. >> THANK YOU. FIRST OFF, I JUST WANT TO MAKE THE POINT THAT WE ARE OPEN. THE CITY OF ROWLETTE IS OPEN FOR BUSINESS.

ON MAY 26 WE OPENED THE PUBLIC LIBRARY TO THE PUBLIC. WE DO HAVE MEASURES SUCH AS REQUIRING PATRONS TO WEAR FACE MASKS. WITH 359 PATIENTS IN THE -- PATRONS IN THE FIRST WEEK. THERE WAS DEMAND. WE HAVE HAD A STEADY CROWD IN THEIR. WE HAVE NOT HIT ANY OF THE CAPS FOR THE NUMBER OF PEOPLE AT ONE TIME. BUT IT HAS BEEN STEADY. SO I'M VERY PROUD OF HOW THINGS ARE GOING VERY SMOOTH. WE DID REOPEN MOST OF THE OTHER FACILITIES YESTERDAY ON MONDAY JUNE 1 THAT INCLUDES CITY HALL. HUMAN RESOURCES AND COMMUNITY DEVELOPMENT IN THE COMMUNITY CENTER. ON JUNE 8, THE RED ZONE WILL OPEN TO SWIM LESSONS ONLY AT

[01:30:04]

THIS TIME. THEN ON JUNE 10, THE MUNICIPAL HAVE THEIR FIRST IN-PERSON DOCKET DOCKET SCHEDULED FOR JUN. SO THOSE ARE SOME OF THE KEY DATES THAT ARE COMING UP.

WE ARE TURNING INTO WHAT THE GOVERNOR SAYS TOMORROW. THAT MAY CHANGE SOME THINGS.

DEPENDING ON WHAT WE HEAR TOMORROW, WE WILL ADJUST, THEN WE WILL BE BACK IN FRONT OF

COUNSEL IN THE NEXT PHASE. SO, THE NEXT SLIDE. >> APPROVING -- JUST TO MAKE A CLEAR STATEMENT, THERE'S A LOT OF BUSINESS TYPES THAT ARE ALLOWED TO BE OPEN NOW.

THE GOVERNOR IS UP TO GA 25 AND THIS ALLOWS MOST BUSINESSES TO OPEN AT 25% BUT THERE ARE A LOT OF EXCEPTIONS AND RESTAURANTS FOR EXAMPLE ARE ALLOWED TO BE OPEN AT 50% WITH OCCUPANCY.

>> NEXT LINE. >> SO YOU CAN SEE FROM THE LIST OF ELIGIBLE BUSINESSES RIGHT NOW, THE MOVIE THEATERS AND SHOPPING MALLS AND BOWLING ALLEYS, THE WATER PARKS, MANUFACTURING SERVICES, A LOT OF BUSINESSES OPEN TO 25%. DINING RESTAURANTS ARE AT 50%.

THERE IS A LOT OF DIFFERENT TYPES OF BUSINESSES AND INDUSTRIES THAT ARE OPEN RIGHT NOW. WE WANT TO MENTION THE STATE AS A SPECIAL DETAIL FOR VARIOUS TYPES OF BUSINESSES AND INDUSTRIES AND YOU CAN FIND THAT AT GOB.TEXT.GOV/ORGANIZATION.

THE WEBSITE IS ALSO, THE LINK IS ALSO ON OUR WEBSITE BUT THERE ARE SPECIAL RULES FOR DIFFERENT TYPES OF BUSINESSES SUCH AS WATER PARKS, SPORTS AND DAY CAMPS.

SO IF YOU ARE IN THAT BUSINESS IT DOES BEHOOVE YOU TO CHECK OUT THE GOVERNOR'S WEBPAGE.

>> NEXT LINE. >> SOME OF THE HIGHLIGHTS. 231 COUNTIES IN TEXAS OUT OF 254 HAVE CASES BEAR I WANT TO POINT THIS OUT BECAUSE I THINK I HAD SOME OTHER MINUTES BUT THIS IS A BIG NUMBER. YOU CAN SEE IT ON THE TOP LEFT-HAND CORNER.

THERE HAS BEEN OVER 1 MILLION TESTS IN TEXAS RIGHT NOW, ANYBODY TENSE, VIRAL TEST BUT RIGHT NOW THE TOTAL TEST AS OF JUNE 1, ALMOST 1.1 MILLION TESTS IN TEXAS.

65,000 CASES REPORTED WITH 1600 PATHOLOGIES. >> NEXT LINE.

>> ROWLETTE THIS WAS AS OF EARLIER THIS MORNING. WE HAD THREE MORE CASES SO WE ARE NOW AT 92 CASES WITH TWO DEATHS. ONE THING I WANT TO SAY IS THE SLIDE ON THE RIGHT-HAND CORNER YOU CAN SEE THE NUMBER OF CASES IS SOMEWHAT FLATTENING OUT.

THE ACTIVE CASES EXCUSE ME. AROUND 30. SO THAT MEANS A LOT OF PEOPLE ARE STARTING TO RECOVER FROM THIS SPIRIT RIGHT ON THE EASTERN BORDER EXCUSE ME THE WESTERN BORDER THEY HAVE 843 CONFIRMED CASES IN ROCKWELL COUNTY HAS AND AGAIN NO TRACK -- TRACK ROWLETTE EMPLOYEES HAVE CONTRACTED THE VIRUS AT THIS TIME.

>>> DALLAS COUNTY, THERE WAS A TIME A WEEK AGO WHERE WE SAW THE NUMBER OF NEW CASES START TO DECLINE AGAIN. BUT RECENTLY IN THE PAST 5-6 DAYS, IT IS CREEPING BACK UP.

TODAY, THIS IS AS OF JUNE 2 NOT JUNE 1, THERE WERE 257 NEW CASES BRINGING THE TOTAL TO 10,719.

AGAIN, MOST OF THE CASES, NOW, WE HAVE KNOWN FOR SOME TIME HAVE BEEN COMMUNITY SPREAD.

80% HAVE BEEN CRITICAL INFRASTRUCTURE WORKERS THOSE ON THE FIRST LINE.

38% OF DEATHS HAVE BEEN ASSOCIATED WITH LONG-TERM CARE FACILITIES.

NEXT SLIDE. >> THIS IS AN INTERESTING SLIDE. IT IS PUT TOGETHER BY THE INSTITUTE OF VERBAL POLICY RESEARCH. THE THING I WANTED TO HONE IN ON IS THE CENTER OF THE SLIDE, IT SHOWS YOU THE NUMBER OF ICU BEDS AND VENTILATORS.

THIS IS OF COURSE ACROSS NORTH TEXAS. THIS IS NOT JUST PURELY DALLAS

[01:35:06]

COUNTY. I DO WANT TO MAKE THAT POINT. IN THE 12 COUNTIES IN DALLAS-FORT WORTH AND ARLINGTON AREA THERE ARE 2,181 ICU BEDS, 13 HUNDRED OF THOSE ARE BEING USED. SO AT 63%. THOSE THAT NEED VENTILATORS, THIS HAS BEEN A HUGE THING WITH COVID-19. THERE'S ALMOST 1900 ACROSS THIS AREA ABOUT 35% ARE CURRENTLY UNUSED. THAT IS A GOOD SIGN.

I KNOW YOU KNOW COUNSEL BEFORE THE PUBLIC SAY, THAT WAS A HUGE PROBLEM IN NEW YORK WHERE, THE NUMBER OF CASES IN THE HOSPITAL, PRIMARILY BECAUSE THEY DIDN'T HAVE THE VENTILATORS FOR THE NUMBER OF RESIDENTS THAT NEEDED THOSE. SO IT IS A HUGE THING HERE IN

TEXAS THAT WE HAVE THOSE ADDITIONAL VENTILATORS. >>> NEXT SLIDE.

>> TESTING, JUST A REMINDER TO THE PUBLIC THERE IS A FREEZE-DRIED THROUGH TESTING SITE IN ROWLETTE AT THE WALMART SUPERCENTER. THERE WERE RESTRICTIONS.

YOU CAN FIND THAT ON OUR WEBPAGE. OUR WEEKLY NEWSLETTER.

IT WENT OUT TONIGHT. JUST LETTING EVERYONE KNOW, WHAT THE REQUIREMENTS ARE.

>> NEXT SLIDE. >> AND THAT IS IT MAY APPEAR JUST WANTED TO HIT A FEW

HIGHLIGHTS. >> THANK YOU SO MUCH. >> SO, WHEN ARE WE GOING TO AND

HOW WILL WE PUBLICIZE THE JULY FOR? >> MAYOR, THAT WILL ACTUALLY BE AN HOUR FRIDAY AT FIVE. THAT WILL BE ONE WAY. WE WILL ALSO USE SOCIAL MEDIA TO NOTIFY FOLKS. FOR THE SAKE OF THOSE WATCHING HERE, WE CAN ANNOUNCE WE HAVE CANCELED JULY 4 FOR THIS YEAR. FIREWORKS MAY BE DONE LATER IN THE YEAR BUT --

>> I AM NOT SURE WE HAVE THE ABILITY TO CANCEL JULY 4 BUT -- >> WELL WE CAN SKIP THE DAY AND

GO STRAIGHT TO JULY 5. >> BUT WE HAVE DECIDED THAT WE WILL NOT HAVE OUR NORMAL CELEBRATION. WE MADE THAT DECISION AT FRIDAY'S MEETING OF LAST WEEK.

AGAIN IF YOU WANT TO HEAR THAT LONG AND LENGTHY DISCUSSION. IT WAS NOT AN EASY DECISION FOR THE CITY TO MAKE. IT WAS HEAVILY WEIGHED FROM A PUBLIC SAFETY STANDPOINT.

IT WAS BASICALLY A SITUATION NORTH TEXAS THAT MOLD COMMUNITIES ARE CANCELING, FESTIVITIES AND THEIR FIREWORKS. SO THERE IS, HUGE CONCERN ABOUT PUBLIC SAFETY FOR THOSE FEW COMMUNITIES THAT WILL HAVE A CELEBRATION YOU COULD HAVE MASSES OF PEOPLE COMING IN AND IT COULD CREATE A PUBLIC SAFETY SITUATION. SO THAT WAS THE MAIN DECISION

MAKING CRITERIA. ANY OTHER COMMENTS? >> ALL RIGHT, SO, ANY OTHER

DISCUSSION ABOUT COVID-19 UPDATES? >> SO WE ARE, LET'S LOOK AT THE

[4. DISCUSS CONSENT AGENDA ITEMS]

CONSENT AGENDA. DOES ANYONE HAVE ANYTHING THEY WOULD LIKE TO DISCUSS ON THE

CONSENT AGENDA OR TAKE INTO CONSIDERATION? >> OKAY.

I SEE NONE. I WILL LET THE PUBLIC KNOW THERE WERE NO PUBLIC COMMENTS FOR TODAY'S WORK SESSION. AND WE WILL REMEMBER TO MAKE THAT STATEMENT.

AND I THINK WE HAVE, 6 MINUTES BEFOE WE START OUR REGULAR MEETING.

SO LET'S MAKE THAT TRACK MEET BACK HERE ON THIS ZOOM CALL WE WILL START OUR REGULAR MEETING AT

* This transcript was compiled from uncorrected Closed Captioning.